PIMCO NEW YORK MUNICIPAL INCOME FUND II

Regulatory Filings • Feb 1, 2011

N-CSRS 1 c64139_ncsrs.htm

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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
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, 2011
Date of reporting period: November
30, 2010

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

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

ITEM 1. REPORT TO SHAREHOLDERS

Semi-Annual Report

November 30, 2010

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

Contents
Letter
to Shareholders	2–3
Fund
Insights/Performance & Statistics	4–6
Schedules
of Investments	7–24
Statements
of Assets and Liabilities	25
Statements
of Operations	26
Statements
of Changes in Net Assets	27–28
Statement
of Cash Flows	29
Notes
to Financial Statements	30–37
Financial
Highlights	38–40
Annual
Shareholder Meeting Results/Changes to the Board of Trustees/Proxy Voting
Policies & Procedures	41
Matters
Relating to the Trustees’ Consideration of the Investment Management &
Portfolio Management Agreements	42–44

| 11.30.10 | PIMCO Municipal Income Funds II Semi-Annual Report 1

D ear Shareholder:

After rising for most of the six-month fiscal period ended November 30, 2010, municipal bonds fell sharply in the final weeks of the period, erasing prior gains. Fueling this sudden reversal were continued concerns about the strength of the U.S. economic recovery, ongoing fiscal problems in many cities and states as well as both the apparent end of federal subsidies for many municipal securities and renewed buying of Treasury bonds by the Federal Reserve (the “Fed”).

Six Months in Review

For the six-month fiscal period ended November 30, 2010:

| • | PIMCO Municipal Income
Fund II rose 0.84% on NAV but declined 1.34% on market price. |
| --- | --- |
| • | PIMCO California Municipal
Income Fund II rose 0.02% on NAV but declined 1.56% on market price. |
| • | PIMCO New York Municipal
Income Fund II declined 0.04% on NAV but rose 3.21% on market price. |

The slowing economy was reflected in gross domestic product (“GDP”) figures during the reporting period. After expanding at a 5.0% annual rate in the fourth quarter of 2009, GDP fell to 3.7% during the first quarter of 2010 and to 1.7% during the second quarter of 2010. However, it rebounded in the third quarter of 2010 to 2.5%.

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

The slowing economy prompted the Fed to resume purchasing U.S. Treasury bonds. The goal of this “quantitative easing” was to lower interest rates and boost economic activity. But at the time of the Fed’s announcement, interest rates were already at or near record-low levels: just 2.41% as recently as early October 2010. As Treasury yields fell, yields on many municipal bonds also dropped, pushing prices – which move in the opposite direction – higher. However these gains quickly evaporated. The quantitative easing program generally excluded Treasury bonds with longer maturities. Their prices dropped, and since municipal bond prices move in tandem with Treasuries, prices of long-term municipals also fell.

There has been a second catalyst for the decline of municipal bond prices. As the recession neared bottom in early 2009, the Obama administration unveiled its Build America Bonds (“BAB”) program. Part of the administration’s stimulus package, BABs were designed to subsidize borrowing costs for state and local governments. However, it became clear after the November election

2 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.10 |

that the new Congress would not extend the BAB program. As a result, a year-end rush to sell BABs flooded the market. Oversupply exceeded demand – causing municipal bond prices to fall.

The end of the BAB program is likely to result in higher borrowing costs for state and city governments, many of which are already in dire fiscal straights. The non-partisan Center on Budget and Policy Priorities projects that 46 states face budget shortfalls in 2011. In 18 of these states, the red ink is more than 20% of planned expenditures.

The Road Ahead

The Bush tax cuts have been extended for two years. While federal tax brackets will remain stable in 2011 and 2012, taxes at the state and local level are likely to rise, given the previously mentioned fiscal concerns. Therefore, despite current headwinds, we continue to believe that the tax advantages inherent in investing in municipal bonds should continue to make them compelling investments in the years ahead.

For specific information on the Funds and their 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) 254-5197. In addition, a wide range of information and resources are available 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.

We remain dedicated to serving your investment needs. Sincerely,

●	●
Hans W. Kertess	Brian S. Shlissel
Chairman	President
& Chief Executive Officer

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

| 11.30.10 | PIMCO Municipal Income Funds II Semi-Annual Report 3

P IMCO Municipal Income Funds II Fund Insights
November
30, 2010 (unaudited)

| • | For the fiscal six-month
period ended November 30, 2010 PIMCO Municipal Income Fund II returned 0.84%
on NAV and -1.34% on market price. PIMCO California Municipal Fund II
returned 0.02% on NAV and -1.56% on market price and PIMCO New York Municipal
Income Fund II returned -0.04% on NAV and 3.21% on market price. |
| --- | --- |
| • | Amid generally declining
yields, the municipal yield curve steepened slightly during the reporting
period, following the lead of the Treasury market. The two-30 year spread
increased by 34 basis points as long yields increased the most. AAA rated
municipal yields increased by two, one, and 36 basis points in two-, 10-, and
30- year maturities, respectively. In longer maturities, municipal bonds
significantly underperformed the stronger taxable bond market, with the
Barclays Capital Long Municipal Bond Index returning 0.06% while the Barclays
Capital Long Government/Credit index returned 6.16%, and the Barclays Capital
Long U.S. Treasury index returned 5.02%. Municipal to Treasury yield ratios
(a measure of the relative attractiveness of municipal and Treasury bonds)
ended higher as Treasuries outperformed municipals. The 10-year ratio
increased to 100.47% and the 30-year ratio decreased to 106.07%. |
| • | Holdings in the health
care sector, which outperformed the general municipal market during the
period, benefitted all three Funds’ returns. The Funds’ interest rate
positioning was negative for performance. Exposure to the tobacco sector,
which underperformed the general municipal market during the period,
detracted from performance. The Funds’ positions in corporate-backed
municipals, which significantly underperformed the general municipal market
during the period, also hindered performance. |
| PIMCO Municipal
Income Fund II | |
| • | The national municipal
bond market benefited from widespread anticipation, confirmed with a
September announcement, of a second round of asset purchases by the Fed in
support of credit markets. The improved investor sentiment was mitigated by
rising concerns about the fiscal health of state governments given the
persistence of low tax revenues. |
| PIMCO California
Municipal Income Fund II | |
| • | California municipal
bonds underperformed the national index, with the Barclays Capital California
Municipal Bond Index returning 0.95% versus 1.12% for the Barclays Capital
Municipal Bond index over the period. Long California municipal bonds
slightly underperformed their peers in the national index, returning 0.04%
versus the Barclays Capital Long Municipal Bond Index gain of 0.06% cited
above. Continued volatility is expected as the state continues to struggle
through their budget process, even with the budget balance agreement. |
| • | In addition to the
factors noted above, exposure to the leasing sector, which outperformed the
general municipal market during the period, benefitted performance. |
| PIMCO New York Municipal Income Fund II | |
| • | New York municipals, as
measured by the Barclays Capital New York Municipal Bond Index, returned
1.00% for the period, slightly trailing the national market’s 1.12% gain, as
measured by the Barclays Capital Municipal Bond Index. The long-maturity
segment of the New York market also under performed the long segment of the
national municipal bond market, returning -0.06% versus the Barclays Capital
Long Municipal Bond Index gain of 0.06% cited above. |
| • | In addition to the
factors noted above, exposure to the transportation sector, which
underperformed the general municipal market during the period, detracted from
performance. |

4 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.10 |

| PIMCO Municipal Income Funds II Performance &
Statistics |
| --- |
| November
30, 2010 (unaudited) |

Municipal Fund II: Total Return (1) :	Market Price		NAV
Six
Month	(1.34	)%	0.84 %
1
Year	8.80	%	11.61 %
5
Year	(0.61	)%	0.25 %
Commencement
of Operations (6/28/02) to 11/30/10	2.69	%	3.11 %

Market Price/NAV Performance: Commencement of Operations (6/28/02) to 11/30/10

| ● | Market
Price |
| --- | --- |
| ● | NAV |

Market Price/NAV:
Market
Price	$10.59
NAV	$10.48
Premium
to NAV	1.05 %
Market
Price Yield (2)	7.37 %

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

| California Municipal Fund
II: — Total
Return (1) : | Market Price | | NAV | |
| --- | --- | --- | --- | --- |
| Six
Month | (1.56 | )% | 0.02 | % |
| 1
Year | 10.47 | % | 10.79 | % |
| 5
Year | (3.74 | )% | (4.48 | )% |
| Commencement
of Operations (6/28/02) to 11/30/10 | 0.80 | % | 0.00 | % |

| Market
Price/NAV Performance: | |
| --- | --- |
| Commencement of
Operations (6/28/02) to 11/30/10 | |
| ● | Market
Price |
| ● | NAV |

Market Price/NAV:
Market
Price	$8.81
NAV	$7.75
Premium
to NAV	13.68 %
Market
Price Yield (2)	8.22 %

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

| 11.30.10 | PIMCO Municipal Income Funds II Semi-Annual Report 5

PIMCO Municipal Funds II Performance & Statistics
November
30, 2010 (unaudited) (continued)

| New York Municipal Income Fund II: — Total
Return (1) : | Market Price | NAV | |
| --- | --- | --- | --- |
| Six
Month | 3.21 % | (0.04 | )% |
| 1
Year | 12.79 % | 9.50 | % |
| 5
Year | 0.46 % | 0.39 | % |
| Commencement
of Operations (6/28/02) to 11/30/10 | 3.34 % | 2.97 | % |

Market Price/NAV Performance:
Commencement
of Operations (6/28/02) to 11/30/10
●	Market
Price
●	NAV

Market Price/NAV:
Market
Price	$11.38
NAV	$10.51
Premium
to NAV	8.28 %
Market
Price Yield (2)	6.99 %

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

| (1) | Past performance is no guarantee of future results. Total return is calculated by determining the percentage
change in net asset value (“NAV”) or market price (as applicable) in the
specified period. The calculation assumes that all income dividends and
capital gain distributions if any, have been reinvested. Total return does
not reflect broker commissions or sales charges. Total return for a period of
less than one year is not annualized. Total return for a period of more than
one year represents the average annual total return. |
| --- | --- |
| | Performance
at market price will differ from its results at NAV. Although market price
returns typically reflect investment results over time, during shorter
periods returns at market price can also be influenced by factors such as
changing views about the Funds, market conditions, supply and demand for each
Fund’s shares, or changes in each dividends. |
| | An
investment in each Fund involves risk, including the loss of principal. Total
return, market price, market yield and NAV will fluctuate with changes in
market conditions. This data is provided for information purposes only and is
not intended for trading purposes. Closed-end funds, unlike open-end funds,
are not continuously offered. There is a onetime public offering and once
issued, shares of closed-end funds are sold in the open market through a
stock exchange. NAV is equal to total assets attributable to common
shareholders less total liabilities divided by the number of common shares
outstanding. Holdings are subject to change daily. |
| (2) | Market
Price Yield is determined by dividing the annualized current monthly per
share dividend (comprised of net investment income) payable to common
shareholders by the market price per common share at November 30, 2010. |

6 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.10 |

| P IMCO Municipal Income Fund II Schedule of
Investments |
| --- |
| November 30, 2010
(unaudited) |

Principal Amount (000s)			Value
MUNICIPAL
BONDS & NOTES—97.2%
	Alabama–1.2%
$ 10,000	Birmingham-Baptist Medical
Centers Special Care Facs.
	Financing Auth. Rev., Baptist Health Systems, Inc.,
	5.00%, 11/15/30, Ser. A	Baa2/NR	$ 8,698,600
1,235	Montgomery BMC Special Care
Facs. Financing Auth. Rev.,
	5.00%, 11/15/29, Ser. B (NPFGC)	A3/A	1,114,378
2,650	Tuscaloosa Public
Educational Building Auth. Rev.,
	Stillman College Project, 5.00%, 6/1/26, Ser. A	NR/BBB–	2,476,292
			12,289,270
	Alaska–0.7%
3,550	Housing Finance Corp. Rev.,
5.25%, 6/1/32, Ser. C (NPFGC)	Aa2/AA	3,565,975
5,900	Northern Tobacco
Securitization Corp. Rev.,
	5.00%, 6/1/46, Ser. A	Baa3/NR	3,707,560
			7,273,535
	Arizona–9.6%
	Health Facs. Auth. Rev.,
Banner Health,
3,500	5.00%, 1/1/35, Ser. A	NR/A+	3,335,115
2,860	5.50%, 1/1/38, Ser. D	NR/A+	2,896,637
5,000	Maricopa Cnty. Pollution
Control Corp. Rev.,
	5.00%, 6/1/35, Ser. A	A1/A	4,855,600
	Pima Cnty. Industrial Dev.
Auth. Rev.,
29,700	5.00%, 9/1/39	Aa2/AA	28,559,520
1,500	Tuscon Electric Power Co., 5.25%, 10/1/40, Ser. A	Baa3/BBB–	1,357,965
	Salt River Project
Agricultural Improvement &
	Power Dist. Rev., Ser. A (h),
41,100	5.00%, 1/1/37	Aa1/AA	41,760,888
10,000	5.00%, 1/1/39	Aa1/AA	10,226,300
10,500	Salt Verde Financial Corp.
Rev., 5.00%, 12/1/37	A3/A	9,239,895
			102,231,920
	Arkansas–0.2%
13,000	Dev. Finance Auth. Rev.,
Arkansas Cancer Research Center
	Project, zero coupon, 7/1/46 (AMBAC)	Aa2/NR	1,691,430
	California–5.3%
6,000	Golden State Tobacco
Securitization Corp. Rev.,
	5.00%, 6/1/33, Ser. A-1	Baa3/BB+	4,407,540
2,500	Los Angeles Department of
Water & Power Rev.,
	5.00%, 7/1/39, Ser. A-1 (AMBAC)	Aa3/AA–	2,492,350
1,365	Lynwood Utility Auth. Rev.,
5.00%, 6/1/29, Ser. A (AGC)	Aa3/AA+	1,363,362
2,000	Montebello Unified School
Dist., GO, 5.00%, 8/1/33 (AGM)	Aa3/AA+	2,018,880
2,000	San Diego Cnty. Water Auth.,
CP, 5.00%, 5/1/38, Ser. 2008-A
	(AGM)	Aa2/AA+	2,004,820
2,000	Santa Clara Cnty. Financing
Auth. Rev.,
	5.75%, 2/1/41, Ser. A (AMBAC)	A1/A+	2,024,060
10,500	State, GO, 6.00%, 4/1/38	A1/A–	11,053,770
	Statewide Communities Dev.
Auth. Rev.,
3,820	California Baptist Univ., 9.00%, 11/1/17, Ser. B (a)(c)	NR/NR	3,427,342

| 11.30.10 | PIMCO Municipal Income Funds II Semi-Annual Report 7

| PIMCO Municipal Income Fund II Schedule of
Investments |
| --- |
| November 30, 2010
(unaudited) (continued) |

Principal Amount (000s)			Value
	California–(continued)
	Methodist Hospital Project (FHA),
$ 5,500	6.625%, 8/1/29	Aa2/NR	$ 6,179,140
19,500	6.75%, 2/1/38	Aa2/NR	21,815,235
			56,786,499
	Colorado–2.1%
5,800	Aurora Rev., Children’s Hospital
Assoc., 5.00%, 12/1/40	A1/A+	5,659,176
11,250	City & Cnty. of Denver
Airport Rev.,
	5.00%, 11/15/25, Ser. B (AGM)	Aa3/AA+	11,262,937
1,000	Denver Health & Hospital
Auth. Rev., 5.625%, 12/1/40	NR/BBB	958,820
	Health Facs. Auth. Rev.,
1,000	American Baptist Homes, 5.90%, 8/1/37, Ser. A	NR/NR	837,480
500	Evangelical Lutheran, 6.125%, 6/1/38, Ser. A	A3/A–	507,435
2,000	Housing & Finance Auth.
Rev., Evergreen Country Day School,
	Inc. Project, 5.875%, 6/1/37 (a)(c)	NR/BB	1,040,400
1,430	Public Auth. for Colorado
Energy Rev., 6.50%, 11/15/38	A2/A	1,567,609
600	Regional Transportation
Dist., CP, 5.375%, 6/1/31, Ser. A (d)	Aa3/A–	600,660
			22,434,517
	Connecticut–0.1%
1,250	Harbor Point Infrastructure
Improvement Dist., Tax Allocation,
	7.875%, 4/1/39, Ser. A	NR/NR	1,302,962
	Delaware–0.1%
1,000	State Economic Dev. Auth.
Rev., Delmarva Power & Light Co.,
	5.40%, 2/1/31	Baa2/BBB+	1,002,160
	Florida–5.8%
1,000	Brevard Cnty. Health Facs.
Auth. Rev., Health First, Inc. Project,
	7.00%, 4/1/39	A3/A–	1,095,540
600	Broward Cnty. Airport Rev.,
5.375%, 10/1/29, Ser. O	A1/A+	620,184
8,500	Broward Cnty. Water &
Sewer Rev., 5.25%, 10/1/34, Ser. A (h)	Aa2/AA	8,791,380
1,000	Clearwater Rev., 5.25%,
12/1/39, Ser. A	Aa3/AA–	1,036,250
6,205	Governmental Utility Auth.
Rev., Barefoot Bay Utilities System,
	5.00%, 10/1/29 (AMBAC)	WR/NR	6,208,537
3,000	Highlands Cnty. Health Facs.
Auth. Rev.,
	Adventist Health System, 5.625%, 11/15/37, Ser. B	Aa3/AA–	3,036,690
2,335	Hillsborough Cnty.
Industrial Dev. Auth. Pollution Control Rev.,
	Tampa Electric Co. Project, 5.50%, 10/1/23	Baa1/BBB	2,381,957
7,135	Jacksonville Health Facs.
Auth. Rev., Ascension Health,
	5.25%, 11/15/32, Ser. A	Aa1/AA	7,204,566
3,000	Leesburg Hospital Rev.,
Leesburg Regional Medical
	Center Project, 5.50%, 7/1/32	Baa1/BBB+	2,847,450
3,490	Miami-Dade Cnty. Airport
Rev., 5.50%, 10/1/36, Ser. A	A2/A–	3,535,963
500	Sarasota Cnty. Health Facs.
Auth. Rev., 5.75%, 7/1/37	NR/NR	407,105
7,900	State Board of Education,
GO, 5.00%, 6/1/38, Ser. D (h)	Aa1/AAA	8,025,689
5,000	Sumter Landing Community
Dev. Dist. Rev.,
	4.75%, 10/1/35, Ser. A (NPFGC)	Baa1/A	4,284,100
10,000	Tallahassee Rev., 5.00%,
10/1/37 (h)	Aa1/AA+	10,137,900

8 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.10 |

| PIMCO Municipal Income Fund II Schedule of
Investments |
| --- |
| November 30, 2010
(unaudited) (continued) |

Principal Amount (000s)			Value
	Florida–(continued)
$ 1,500	Winter Springs Water &
Sewer Rev.,
	zero coupon, 10/1/29 (FGIC-NPFGC)	WR/A+	$ 601,815
			60,215,126
	Georgia–0.3%
1,500	Atlanta Airport Rev., 5.00%,
1/1/40, Ser. A	A1/NR	1,475,100
2,775	Medical Center Hospital
Auth. Rev.,
	Spring Harbor Green Island Project,
	5.25%, 7/1/37	NR/NR	2,189,753
			3,664,853
	Illinois–13.9%
	Chicago, GO, Ser. C,
10,000	5.00%, 1/1/34 (h)	Aa3/A+	9,891,600
4,065	5.50%, 1/1/40 (FGIC-NPFGC)	Aa3/A+	4,118,292
	Chicago, Special Assessment,
Lake Shore East,
3,161	6.625%, 12/1/22	NR/NR	3,031,273
6,700	6.75%, 12/1/32	NR/NR	6,251,033
1,250	Chicago Motor Fuel Tax Rev.,
5.00%, 1/1/38, Ser. A (AGC)	Aa3/AA+	1,244,437
5,000	Cicero, GO, 5.25%, 12/1/31
(NPFGC)	Baa1/A	5,071,800
	Finance Auth. Rev.,
2,500	Christian Homes, Inc., 5.75%, 5/15/31, Ser. A	NR/NR	2,258,075
20,100	Elmhurst Memorial Healthcare, 5.625%, 1/1/28	Baa1/NR	18,811,590
250	Leafs Hockey Club Project, 6.00%, 3/1/37, Ser. A (k)	NR/NR	62,750
1,000	Memorial Health Systems, 5.50%, 4/1/39	A1/A+	974,710
700	OSF Healthcare System, 7.125%, 11/15/37, Ser. A	A3/A	751,093
2,000	Provena Health, 6.00%, 5/1/28, Ser. A	Baa1/BBB+	1,995,600
1,500	Sedgebrook, Inc., 6.00%, 11/15/42, Ser. A (k)	NR/NR	418,500
	Univ. of Chicago, Ser. B,
10,000	5.50%, 7/1/37	Aa1/AA	10,809,000
5,000	5.50%, 7/1/37 (h)	Aa1/AA	5,404,500
68,470	Sports Facs. Auth. Rev.,
5.50%, 6/15/30 (AMBAC)	WR/A	70,606,264
	Village of Hillside, Tax
Allocation, Mannheim Redev. Project,
4,500	6.55%, 1/1/20	NR/NR	4,224,600
2,900	7.00%, 1/1/28	NR/NR	2,551,594
			148,476,711
	Indiana–0.5%
	Finance Auth. Rev.,
1,500	Duke Energy Indiana, Inc., 6.00%, 8/1/39, Ser. B	NR/A	1,611,915
2,500	United States Steel Corp., 6.00%, 12/1/26	Ba2/BB	2,534,275
990	Vigo Cnty. Hospital Auth.
Rev., Union Hospital, Inc.,
	5.80%, 9/1/47 (a)(c)	NR/NR	880,922
			5,027,112
	Iowa–4.1%
	Finance Auth. Rev.,
	Deerfield Retirement Community, Inc., Ser. A,
250	5.50%, 11/15/27	NR/NR	179,223
1,075	5.50%, 11/15/37	NR/NR	700,158
4,500	Edgewater LLC Project, 6.75%, 11/15/42	NR/NR	4,077,540

| 11.30.10 | PIMCO Municipal Income Funds II Semi-Annual Report 9

| PIMCO Municipal Income Fund II Schedule of
Investments |
| --- |
| November 30, 2010
(unaudited) (continued) |

Principal Amount (000s)			Value
	Iowa–(continued)
$ 850	Wedum Walnut Ridge LLC Project,
	5.625%, 12/1/45, Ser. A	NR/NR	$ 522,631
46,000	Tobacco Settlement Auth.
Rev., 5.60%, 6/1/34, Ser. B	Baa3/BBB	38,168,040
			43,647,592
	Kansas–0.1%
500	Dev. Finance Auth. Rev.,
Adventist Health, 5.75%, 11/15/38	Aa3/AA–	536,475
850	Manhattan Rev., Meadowlark
Hills Retirement,
	5.00%, 5/15/36, Ser. A	NR/NR	655,053
			1,191,528
	Kentucky–0.8%
	Economic Dev. Finance Auth.
Rev.,
	Baptist Healthcare Systems, Ser. A,
2,000	5.375%, 8/15/24	Aa3/NR	2,141,040
2,500	5.625%, 8/15/27	Aa3/NR	2,659,725
2,500	Catholic Healthcare Partners, 5.25%, 10/1/30	A1/AA–	2,503,700
1,000	Owensboro Medical Healthcare Systems,
	6.375%, 6/1/40, Ser. A	Baa2/NR	1,002,460
			8,306,925
	Louisiana–4.6%
	Local Gov’t Environmental
Facs. & Community Dev. Auth. Rev.,
450	Westlake Chemical Corp., 6.50%, 11/1/35, Ser. A-2 (d)	Ba2/BBB–	457,852
	Woman’s Hospital Foundation, Ser. A,
750	5.875%, 10/1/40	A3/BBB+	719,918
1,000	6.00%, 10/1/44	A3/BBB+	968,980
3,300	Public Facs. Auth. Rev.,
Ochsner Clinic Foundation Project,
	5.50%, 5/15/47, Ser. B	Baa1/NR	2,954,523
44,395	Tobacco Settlement Financing
Corp. Rev.,
	5.875%, 5/15/39, Ser. 2001-B	Baa3/BBB	43,939,063
			49,040,336
	Maryland–0.5%
	Health & Higher Educational
Facs. Auth. Rev.,
1,000	Adventist Healthcare, 5.75%, 1/1/25, Ser. A	Baa2/NR	1,011,450
1,010	King Farm Presbyterian Community, 5.30%, 1/1/37, Ser. A	NR/NR	735,745
4,050	Washington Cnty. Hospital, 6.00%, 1/1/43	NR/BBB–	4,077,580
			5,824,775
	Massachusetts–0.8%
	Dev. Finance Agcy. Rev.,
	Adventcare Project,
4,610	6.75%, 10/15/37, Ser. A	NR/NR	4,168,177
580	7.625%, 10/15/37	NR/NR	581,311
1,000	Foxborough Regional Charter School, 7.00%, 7/1/42, Ser. A	NR/BBB	1,004,070
2,900	State College Building Auth.
Rev., 5.50%, 5/1/39, Ser. A	Aa2/AA–	3,078,147
			8,831,705
	Michigan–3.1%
1,000	Detroit, GO, 5.25%, 11/1/35	Aa3/AA	964,940
4,545	Garden City Hospital Finance
Auth. Rev., 5.00%, 8/15/38, Ser. A	NR/NR	3,045,150

10 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.10 |

| PIMCO Municipal Income Fund II Schedule of
Investments |
| --- |
| November 30, 2010
(unaudited) (continued) |

Principal Amount (000s)			Value
	Michigan–(continued)
$ 800	Public Educational Facs.
Auth. Rev., Bradford Academy,
	6.50%, 9/1/37 (a)(c)	NR/BBB–	$ 775,760
3,000	Royal Oak Hospital Finance
Auth. Rev.,
	William Beaumont Hospital, 8.25%, 9/1/39	A1/A	3,514,200
	State Hospital Finance Auth.
Rev.,
5,000	Ascension Health, 5.25%, 11/15/26, Ser. B	Aa1/AA	5,088,550
	Oakwood Group, Ser. A,
13,500	5.75%, 4/1/32	A2/A	13,270,905
1,925	6.00%, 4/1/22	A2/A	1,957,764
6,000	Tobacco Settlement Finance
Auth. Rev., 6.00%, 6/1/48, Ser. A	NR/BB	4,253,340
			32,870,609
	Minnesota–0.6%
150	Duluth Housing & Redev.
Auth. Rev., 5.875%, 11/1/40, Ser. A	NR/BBB–	138,993
280	Minneapolis, Tax Allocation,
Grant Park Project, 5.35%, 2/1/30	NR/NR	235,791
1,500	Minneapolis Rev., Providence
Project, 5.75%, 10/1/37, Ser. A	NR/NR	1,326,840
	North Oaks Rev.,
Presbyterian Homes North Oaks,
2,640	6.00%, 10/1/33	NR/NR	2,529,146
1,530	6.125%, 10/1/39	NR/NR	1,472,839
500	Oronoco Rev., Wedum
Shorewood Campus Project,
	5.40%, 6/1/41	NR/NR	423,935
400	St. Louis Park Rev.,
Nicollett Health Services, 5.75%, 7/1/39	NR/A	401,320
			6,528,864
	Mississippi–0.4%
3,605	Business Finance Corp. Rev.,
System Energy Res.,
	Inc. Project, 5.875%, 4/1/22	Ba1/BBB	3,579,657
740	Dev. Bank Special Obligation
Rev., Capital Projects and
	Equipment Acquisition, 5.00%, 7/1/24, Ser. A-2 (AMBAC)	WR/NR	729,936
			4,309,593
	Missouri–1.8%
20,000	JT Municipal Electric
Utility Commission Rev.,
	5.00%, 1/1/42, Ser. A (AMBAC)	A3/NR	19,119,200
	Nevada–1.1%
	Clark Cnty., GO,
(FGIC-NPFGC),
10,000	4.75%, 11/1/35	Aa1/AA+	9,785,100
1,450	5.00%, 6/1/31	Aa1/AA+	1,460,208
			11,245,308
	New
Hampshire–0.2%
2,000	Business Finance Auth. Rev.,
Elliot Hospital,
	6.125%, 10/1/39, Ser. A	Baa1/BBB+	2,015,380
360	Health & Education Facs.
Auth. Rev., Catholic Medical Center,
	6.125%, 7/1/32, Ser. A	Baa1/BBB+	361,523
			2,376,903
	New
Jersey–3.3%
950	Burlington Cnty. Bridge
Commission Rev., The Evergreens Project,
	5.625%, 1/1/38	NR/NR	796,300

| 11.30.10 | PIMCO Municipal Income Funds II Semi-Annual Report 11

| PIMCO Municipal Income Fund II Schedule of
Investments |
| --- |
| November 30, 2010 (unaudited)
(continued) |

Principal Amount (000s)			Value
	New Jersey–(continued)
	Economic Dev. Auth., Special Assessment,
	Kapkowski
Road Landfill Project,
$ 4,000	5.75%,
10/1/21	Ba2/NR	$ 4,034,920
11,405	5.75%,
4/1/31	Ba2/NR	10,942,413
	Economic Dev. Auth. Rev.,
525	Arbor Glen,
6.00%, 5/15/28, Ser. A	NR/NR	453,600
2,000	MSU Student
Housing Project, 5.875%, 6/1/42	Baa3/NR	2,034,180
3,300	Educational Facs. Auth. Rev., Fairfield Dickinson Univ.,
	6.00%,
7/1/25, Ser. D	NR/NR	3,387,549
	Health Care Facs. Financing Auth. Rev.,
1,500	St. Peters
Univ. Hospital, 5.75%, 7/1/37	Baa3/BBB–	1,458,165
1,830	Trinitas
Hospital, 5.25%, 7/1/30, Ser. A	Baa3/BBB–	1,645,829
2,000	State Turnpike Auth. Rev., 5.25%, 1/1/40, Ser. E	A3/A+	2,092,300
13,150	Tobacco Settlement Financing Corp. Rev.,
	5.00%,
6/1/41, Ser. 1-A	Baa3/BB–	8,359,455
			35,204,711
	New Mexico–0.2%
2,000	Farmington Pollution Control Rev., 5.90%, 6/1/40, Ser. D	Baa3/BB+	2,004,320
	New York–2.8%
1,200	Erie Cnty. Industrial Dev. Agcy. Rev.,
	Orchard
Park, Inc. Project, 6.00%, 11/15/36, Ser. A	NR/NR	970,032
	Liberty Dev. Corp. Rev.,
1,000	5.125%,
1/15/44	NR/AA	1,003,920
2,500	5.625%,
7/15/47	NR/A	2,581,700
1,250	6.375%,
7/15/49	NR/BBB–	1,293,975
	Goldman
Sachs Headquarters,
1,505	5.25%,
10/1/35	A1/A	1,511,126
10,000	5.25%,
10/1/35 (h)	A1/A	10,040,700
1,100	Nassau Cnty. Industrial Dev. Agcy. Rev.,
	Amsterdam
at Harborside, 6.70%, 1/1/43, Ser. A	NR/NR	1,041,909
2,830	New York City Municipal Water Finance Auth.
	Water &
Sewer Rev., 5.00%, 6/15/37, Ser. D (h)	Aa1/AAA	2,870,016
	Second
Generation Resolutions,
4,000	4.75%,
6/15/35, Ser. DD (h)	Aa2/AA+	4,015,520
2,000	5.00%,
6/15/39, Ser. GG-1	Aa2/AA+	2,044,560
1,750	State Dormitory Auth. Rev., The New School,
	5.50%,
7/1/40 (d)	A3/A–	1,783,845
250	Suffolk Cnty. Industrial Dev. Agcy. Rev.,
	New York
Institute of Technology, 5.00%, 3/1/26	Baa2/BBB+	261,345
			29,418,648
	North Carolina–0.5%
5,000	Capital Facs. Finance Agcy. Rev., Duke Energy,
	4.625%,
11/1/40, Ser. A	A1/A	4,594,300
	Medical Care Commission Rev.,
550	Salemtowne,
5.10%, 10/1/30	NR/NR	488,917
1,000	Village at
Brookwood, 5.25%, 1/1/32	NR/NR	781,070
			5,864,287

12 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.10 |

| PIMCO Municipal Income Fund II Schedule of
Investments |
| --- |
| November 30, 2010 (unaudited)
(continued) |

Principal Amount (000s)			Value
	North Dakota–0.3%
$ 3,710	Stark Cnty. Healthcare Rev., Benedictine Living
Communities,
	6.75%,
1/1/33	NR/NR	$ 3,590,056
	Ohio–1.3%
1,000	Higher Educational Fac. Commission Rev.,
	Univ.
Hospital Health Systems, 6.75%, 1/15/39, Ser. 2009-A	A2/A	1,051,420
7,500	Lorain Cnty. Hospital Rev., Catholic Healthcare,
	5.375%,
10/1/30	A1/AA–	7,559,700
500	Lorain Cnty. Port Auth. Rev., 6.75%, 12/1/40 (d)	Ba2/BB	506,150
1,000	Montgomery Cnty. Rev., Miami Valley Hospital,
	6.25%,
11/15/39, Ser. A	Aa3/NR	1,038,110
	State Rev.,
550	Ashland
Univ. Project, 6.25%, 9/1/24	Ba1/NR	557,342
3,000	Cleveland
Clinic Health System, 5.50%, 1/1/39, Ser. B	Aa2/AA–	3,167,910
			13,880,632
	Oregon–0.2%
1,000	Clackamas Cnty. Hospital Fac. Auth. Rev., Legacy Health
	System,
5.50%, 7/15/35, Ser. A	A2/A+	1,028,180
1,155	State Department of Administrative Services, CP,
	5.25%,
5/1/39, Ser. A	Aa2/AA–	1,185,746
			2,213,926
	Pennsylvania–5.0%
	Cumberland Cnty. Municipal Auth. Rev.,
	Messiah
Village Project, Ser. A,
750	5.625%,
7/1/28	NR/BBB–	682,523
670	6.00%,
7/1/35	NR/BBB–	607,107
3,250	Harrisburg Auth. Rev., Harrisburg Univ. of Science,
	6.00%,
9/1/36, Ser. B	NR/NR	2,864,290
	Higher Educational Facs. Auth. Rev.,
850	Edinboro
Univ. Foundation, 6.00%, 7/1/43	Baa3/BBB–	846,328
400	Thomas
Jefferson Univ., 5.00%, 3/1/40	A1/AA–	398,748
500	Luzerne Cnty. Industrial Dev. Auth. Rev.,
	Pennsylvania
American Water Co., 5.50%, 12/1/39	A2/A	504,585
	Montgomery Cnty. Higher Education & Health Auth. Rev.,
	Abington
Memorial Hospital, Ser. A,
5,000	5.125%,
6/1/27	NR/A	5,004,050
3,750	5.125%,
6/1/32	NR/A	3,690,000
8,500	Montgomery Cnty. Industrial Dev. Auth. Rev.,
	5.375%,
8/1/38 (FHA)	Aa2/AA	8,646,115
17,000	Philadelphia, GO, 5.25%, 12/15/32, Ser. A (AGM)	Aa3/AA+	17,334,390
11,600	Philadelphia Hospitals & Higher Education Facs. Auth.
Rev.,
	Temple
Univ. Hospital, 6.625%, 11/15/23, Ser. A	Baa3/BBB	11,604,060
500	Philadelphia Water Rev., 5.25%, 1/1/36, Ser. A	A1/A	507,205
1,000	Westmoreland Cnty. Industrial Dev. Auth. Rev.,
	Excela
Health Project, 5.125%, 7/1/30	A3/NR	968,150
			53,657,551
	Puerto Rico–0.9%
10,000	Sales Tax Financing Corp. Rev., 5.25%, 8/1/41, Ser. C	A1/A+	9,879,100

| 11.30.10 | PIMCO Municipal Income Funds II Semi-Annual Report 13

| PIMCO Municipal Income Fund II Schedule of
Investments |
| --- |
| November 30, 2010 (unaudited)
(continued) |

Principal Amount (000s)			Value
	Rhode Island–6.7%
$ 76,200	Tobacco Settlement Financing Corp. Rev.,
	6.25%,
6/1/42, Ser. A	Baa3/BBB	$ 71,724,012
	South Carolina–1.5%
1,000	Greenwood Cnty. Rev., Self Regional Healthcare,
	5.375%,
10/1/39	A2/A+	990,510
	Jobs-Economic Dev. Auth. Rev.,
500	Anmed
Health, 5.50%, 2/1/38, Ser. B (AGC)	NR/AA+	510,835
13,850	Bon Secours
Health System, 5.625%, 11/15/30, Ser. B	A3/A–	13,901,383
1,000	State Public Service Auth. Rev., 5.25%, 1/1/39, Ser. B	Aa2/AA–	1,048,910
			16,451,638
	Tennessee–0.7%
1,750	Claiborne Cnty. Industrial Dev. Board Rev.,
	Lincoln
Memorial Univ. Project, 6.625%, 10/1/39	NR/NR	1,798,580
1,000	Johnson City Health & Educational Facs. Board Rev.,
	Mountain
States Health Alliance, 6.00%, 7/1/38	Baa1/BBB+	974,960
500	Sullivan Cnty. Health Educational & Housing Facs.
Board Rev.,
	Wellmont
Health Systems Project, 5.25%, 9/1/36, Ser. C	NR/BBB+	436,930
	Tennessee Energy Acquisition Corp. Rev.,
3,000	5.00%,
2/1/23, Ser. C	Baa1/A	2,933,010
700	5.25%,
9/1/21, Ser. A	Ba3/BB+	705,663
700	5.25%,
9/1/22, Ser. A	Ba3/BB+	702,380
			7,551,523
	Texas–13.2%
130	Aubrey Independent School Dist., GO,
	5.50%,
2/15/33 (PSF-GTD)	Aaa/NR	136,045
6,500	Brazos Cnty. Health Facs. Dev. Corp. Rev., 5.375%, 1/1/32	NR/A–	6,227,065
2,500	Dallas Rev., Dallas Civic Center, 5.25%, 8/15/38 (AGC)	Aa3/AA+	2,515,400
	Harris Cnty. Cultural Education Facs. Finance Corp. Rev.,
	Texas
Children’s Hospital Project,
3,750	5.25%,
10/1/29	Aa2/AA	3,794,625
12,700	5.50%,
10/1/39	Aa2/AA	12,993,116
700	HFDC of Central Texas, Inc. Rev., Village at Gleannloch
Farms,
	5.50%,
2/15/37, Ser. A	NR/NR	490,679
5,500	Houston Airport Rev., 5.00%, 7/1/25, Ser. C (FGIC-NPFGC)	A2/A	5,501,430
3,170	Little Elm Independent School Dist., GO,
	5.30%,
8/15/29, Ser. A (PSF-GTD)	NR/AAA	3,287,448
	Municipal Gas Acquisition & Supply Corp. I Rev.,
450	5.25%,
12/15/25, Ser. A	A2/A	438,584
15,300	6.25%,
12/15/26, Ser. D	A2/A	16,410,168
	North Harris Cnty. Regional Water Auth. Rev.,
10,300	5.25%,
12/15/33	A1/A+	10,448,011
10,300	5.50%,
12/15/38	A1/A+	10,500,541
	North Texas Tollway Auth. Rev.,
6,250	4.75%,
1/1/29 (FGIC-NPFGC)	A2/A	5,993,438
5,000	5.625%,
1/1/33, Ser. B	A2/A–	4,984,100
1,200	5.75%,
1/1/33, Ser. F	A3/BBB+	1,199,940
1,250	6.25%,
1/1/39, Ser. A	A2/A–	1,296,400

14 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.10 |

| PIMCO Municipal Income Fund II Schedule of
Investments |
| --- |
| November 30, 2010 (unaudited)
(continued) |

Principal Amount (000s)			Value
	Texas–(continued)
$ 2,000	Sabine River Auth. Pollution Control Rev.,
	5.20%,
5/1/28, Ser. C	Ca/NR	$ 673,280
10,000	San Antonio Electric & Gas Systems Rev., 5.00%, 2/1/32
(h)	Aa1/AA	10,452,000
250	San Juan Higher Education Finance Auth. Rev.,
	6.70%,
8/15/40, Ser. A (d)	NR/BBB	251,028
	State, Mobility Fund, GO (h),
10,025	4.75%,
4/1/35, Ser. A	Aaa/AA+	10,078,934
17,500	4.75%,
4/1/36	Aaa/AA+	17,597,125
3,250	State, Water Financial Assistance, GO, 5.00%, 8/1/36	Aaa/AA+	3,297,385
1,000	State Public Finance Auth. Rev., Charter School Finance
Corp.,
	5.875%,
12/1/36, Ser. A	Baa3/BBB–	962,040
8,880	State Turnpike Auth. Rev., 5.00%, 8/15/42, Ser. A (AMBAC)	Baa1/BBB+	8,117,474
3,000	Tarrant Cnty. Cultural Education Facs. Finance Corp. Rev.,
	Baylor
Health Care Systems Project, 6.25%, 11/15/29	Aa2/AA–	3,294,990
			140,941,246
	Virginia–0.3%
1,000	Fairfax Cnty. Industrial Dev. Auth. Rev., Inova Health
Systems,
	5.50%,
5/15/35, Ser. A	Aa2/AA+	1,059,530
1,000	Henrico Cnty. Economic Dev. Auth. Rev., Bon Secours Health
	System,
4.50%, 11/1/42, Ser. B-1 (AGC)	Aa3/AA+	914,700
2,050	James City Cnty. Economic Dev. Auth. Rev.,
	United
Methodist Homes, 5.50%, 7/1/37, Ser. A	NR/NR	1,222,333
			3,196,563
	Washington–1.5%
	Health Care Facs. Auth. Rev.,
1,300	Multicare
Health Systems, 6.00%, 8/15/39, Ser. B (AGC)	Aa3/AA+	1,375,647
1,000	Seattle
Cancer Care Alliance, 7.375%, 3/1/38	A3/NR	1,101,240
13,000	Virginia
Mason Medical Center, 6.125%, 8/15/37, Ser. A	Baa2/BBB	13,230,490
			15,707,377
	Wisconsin–1.1%
	Health & Educational Facs. Auth. Rev.,
90	Froedert
& Community Health, 5.375%, 10/1/30	NR/AA–	90,763
1,000	Prohealth
Care, Inc., 6.625%, 2/15/39	A1/A+	1,070,620
10,000	State Rev., 6.00%, 5/1/36, Ser. A	Aa3/AA–	10,894,100
			12,055,483
	Total Municipal Bonds & Notes (cost–$1,038,077,474)		1,039,030,506
VARIABLE RATE NOTES (f) —2.8%
	California–0.4%
5,000	Health Facs. Financing Auth. Rev.,
	9.31%, 11/15/36,
Ser. 3193 (a)(c)(e)	NR/NR	4,744,400
	Florida–0.2%
1,830	Highlands Cnty. Health Facs. Auth. Rev.,
	Adventist
Health System, 5.00%, 11/15/31, Ser. C	Aa3/AA–	1,754,275

| 11.30.10 | PIMCO Municipal Income Funds II Semi-Annual Report 15

| PIMCO Municipal Income Fund II Schedule of
Investments |
| --- |
| November 30, 2010 (unaudited)
(continued) |

Principal Amount (000s)			Value
	Illinois–1.2%
$ 5,000	Chicago, GO, 13.58%, 1/1/34, Ser. 3190 (a)(c)(e)	NR/NR	$ 4,837,400
3,000	Metropolitan Pier & Exposition Auth. Rev.,
	14.19%,
6/15/50, Ser. 3217 (a)(c)(e)	NR/AAA	2,735,580
5,000	State, GO, 9.54%, 4/1/27, Ser. 783 (AGC) (a)(c)(e)	Aa3/NR	5,056,500
			12,629,480
	Texas–0.8%
3,335	JPMorgan Chase Putters/Drivers Trust Rev.,
	13.445%,
5/15/18, Ser. 3709 (a)(c)(e)	NR/AAA	3,700,616
5,365	State, GO, 8.80%, 4/1/37, Ser. 3197 (a)(c)(e)	NR/NR	5,480,991
			9,181,607
	West Virginia–0.2%
2,000	Economic Dev. Auth. Rev., Appalachia Power,
	5.375%,
12/1/38, Ser. A	Baa2/BBB	1,948,060
	Total Variable Rate Notes (cost–$31,180,125)		30,257,822
	Total Investments (cost–$1,069,257,599)– 100.0%		$ 1,069,288,328

16 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.10 |

| PIMCO California Municipal Income Fund II Schedule of
Investments |
| --- |
| November 30, 2010 (unaudited) |

Principal Amount (000s)			Value
CALIFORNIA MUNICIPAL BONDS &
NOTES—90.3%
$ 2,000	Alhambra Rev., Atherton Baptist Homes,
	7.625%,
1/1/40, Ser. A	NR/NR	$ 2,080,060
5,300	Assoc. of Bay Area Gov’t Finance Auth. for Nonprofit
Corps. Rev.,
	Odd Fellows
Home of California,
	5.20%,
11/15/22, Ser. A (CA Mtg. Ins.)	NR/A–	5,346,746
	Bay Area Toll Auth. Rev., San Francisco Bay Area, Ser.
F-1,
5,000	5.00%,
4/1/34	Aa3/AA	5,011,800
20,000	5.00%,
4/1/39 (h)	Aa3/AA	20,035,000
1,000	Chula Vista Rev., San Diego Gas & Electric,
	5.875%,
2/15/34, Ser. B	Aa3/A+	1,117,120
300	City & Cnty. of San Francisco,
	Capital
Improvement Projects, CP, 5.25%, 4/1/31, Ser. A	A1/AA–	306,675
1,410	Community College Financing Auth. Rev.,
	5.00%,
8/1/27, Ser. A (AMBAC)	WR/NR	1,351,429
1,110	Corona-Norco Unified School Dist. No. 98-1, Special Tax,
	5.10%,
9/1/25 (AMBAC)	WR/NR	1,110,466
	Corona-Norco Unified School Dist. Public Financing Auth.,
	Special
Tax, Ser. A,
305	5.65%,
9/1/16	NR/NR	308,550
160	5.75%,
9/1/17	NR/NR	161,090
530	6.00%,
9/1/20	NR/NR	533,774
1,000	6.00%,
9/1/25	NR/NR	1,006,130
4,150	6.10%,
9/1/32	NR/NR	4,032,845
9,565	Coronado Community Dev. Agcy., Tax Allocation,
	4.875%,
9/1/35 (AMBAC)	NR/AA–	8,390,992
3,000	Dinuba Financing Auth. Rev., Public Works Projects,
	5.10%,
8/1/32 (NPFGC)	Baa1/A	3,060,960
8,300	El Dorado Irrigation Dist. & El Dorado Water Agcy.,
CP,
	5.75%, 8/1/39,
Ser. A (AGC)	Aa3/AA+	8,611,997
1,500	Foothill-Eastern Transportation Corridor Agcy. Rev.,
	5.875%,
1/15/27 (IBC-NPFGC)	Baa1/A	1,455,090
1,440	Fremont Community Facs. Dist. No. 1, Special Tax,
	Pacific
Commons, 5.30%, 9/1/30	NR/NR	1,326,182
	Golden State Tobacco Securitization Corp. Rev.,
13,885	5.00%,
6/1/45 (AMBAC-TCRS)	A2/BBB+	12,132,574
1,500	5.00%,
6/1/45, Ser. A	A2/BBB+	1,310,685
6,000	5.00%,
6/1/45, Ser. A (FGIC-TCRS)	A2/A–	5,242,740
8,500	5.125%,
6/1/47, Ser. A-1	Baa3/BB+	5,482,160
21,415	5.75%,
6/1/47, Ser. A-1	Baa3/BB+	15,357,125
500	Hartnell Community College Dist., GO,
	zero
coupon, 8/1/34, Ser. 2002-D (i)	Aa2/AA–	251,310
	Health Facs. Financing Auth. Rev.,
	Adventist
Health System, Ser. A,
500	5.00%,
3/1/33	NR/A	457,080
250	5.75%,
9/1/39	NR/A	252,025
3,000	Catholic
Healthcare West, 6.00%, 7/1/39, Ser. A	A2/A	3,124,230
1,200	Children’s
Hospital of Los Angeles, 5.25%, 7/1/38 (AGM)	Aa3/AA+	1,155,972
500	Children’s
Hospital of Orange Cnty., 6.50%, 11/1/38, Ser. A	NR/A	529,765
1,500	Scripps
Health, 5.00%, 11/15/36, Ser. A	A1/AA–	1,443,030
2,000	Sutter
Health, 5.00%, 11/15/42, Ser. A (IBC-NPFGC)	Aa3/A	1,853,060
175	Infrastructure & Economic Dev. Bank Rev., 5.25%,
2/1/38	A1/A+	173,486

| 11.30.10 | PIMCO Municipal Income Funds II Semi-Annual Report 17

PIMCO California Municipal Income Fund II Schedule of Investments
November 30, 2010 (unaudited)
(continued)

Principal Amount (000s) — $ 1,000	Irvine Unified School Dist., Special Tax, 6.70%, 9/1/35	NR/NR	Value — $ 1,053,980
500	Lancaster Redev. Agcy. Rev., Capital Improvements
Projects,
	5.90%,
12/1/35	NR/A	496,060
1,000	Lancaster Redev. Agcy., Tax Allocation, 6.875%, 8/1/39	NR/A	1,094,360
5,300	Livermore-Amador Valley Water Management Agcy. Rev.,
	5.00%,
8/1/31, Ser. A (AMBAC)	Aa2/NR	5,322,949
7,500	Long Beach Bond Finance Auth. Rev., Long Beach Natural
Gas,
	5.50%,
11/15/37, Ser. A	A2/A	7,324,725
10,000	Long Beach Unified School Dist., GO, 5.25%, 8/1/33, Ser. A
(h)	Aa2/AA–	10,315,200
2,685	Los Angeles, Equipment & Real Property Project, CP,
	5.00%,
10/1/27, Ser. AU (NPFGC)	A2/A+	2,699,714
4,895	Los Angeles, Real Property Project, CP,
	5.00%,
2/1/27, Ser. T (NPFGC)	A1/A+	4,909,440
10,000	Los Angeles Community College Dist., GO,
	5.00%,
8/1/33, Ser. F-1 (h)	Aa1/AA	9,999,300
	Los Angeles Department of Water & Power Rev.,
15,000	4.75%,
7/1/30, Ser. A-2 (AGM) (h)	Aa3/AA+	15,036,150
15,950	5.125%,
7/1/41, Ser. A (FGIC-NPFGC-TCRS)	Aa2/AA	15,962,282
11,000	Los Angeles Unified School Dist., GO, 5.00%, 1/1/34, Ser.
I	Aa2/AA–	10,910,240
	Manteca Redev. Agcy., Tax Allocation,
7,295	5.00%,
10/1/32 (AGM)	Aa3/AA+	6,977,011
10,000	5.00%,
10/1/36 (AMBAC)	WR/A	8,829,300
5,330	Manteca Unified School Dist. No. 89-2, Special Tax,
	5.00%,
9/1/29, Ser. C (NPFGC)	Baa1/A	5,291,144
4,000	Merced Cnty., Juvenile Justice Correctional Fac., CP,
	5.00%,
6/1/32 (AMBAC)	A1/NR	4,026,280
5,000	Metropolitan Water Dist. of Southern California Rev.,
	5.00%,
7/1/37, Ser. A (h)	Aa1/AAA	5,126,500
4,700	Moreno Valley Unified School Dist. Community Facs.
	Dist. No.
2004-6, Special Tax, 5.20%, 9/1/36	NR/NR	3,729,262
1,400	M-S-R Energy Auth. Rev., 6.50%, 11/1/39, Ser. B	NR/A	1,526,084
5,000	Oakland Unified School Dist., Alameda Cnty., GO,
	6.125%,
8/1/29, Ser. A	A1/BBB+	5,276,000
4,750	Palomar Pomerado Health, CP, 6.75%, 11/1/39	Baa3/NR	4,893,687
10,000	Placentia-Yorba Linda Unified School Dist., CP,
	5.00%,
10/1/32 (FGIC-NPFGC)	A1/A+	9,450,800
1,500	Pollution Control Financing Auth. Rev.,
	American
Water Capital Corp. Project,
	5.25%,
8/1/40 (a)(c)	Baa2/BBB+	1,418,145
	Riverside Unified School Dist. Community Facs.
	School
Dist. No. 15, Special Tax, Ser. A,
1,000	5.25%,
9/1/30	NR/NR	881,020
1,000	5.25%,
9/1/35	NR/NR	848,170
3,000	Riverside, CP, 5.00%, 9/1/33 (AMBAC)	WR/A+	2,862,540
	Roseville Redev. Agcy., Tax Allocation, Ser. B (NPFGC),
2,230	5.00%,
9/1/27	A2/A	2,185,244
3,365	5.00%,
9/1/32	A2/A	3,214,416
7,500	San Bernardino Community College Dist., GO,
	6.25%,
8/1/33, Ser. A	Aa2/AA–	8,265,450
	San Diego Public Facs. Financing Auth. Rev.,
11,000	5.00%,
8/1/32 (NPFGC)	Aa3/A+	11,105,710
4,000	5.25%,
8/1/38, Ser. A	Aa2/AA–	4,176,520

18 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.10 |

| PIMCO California Municipal Income Fund II Schedule of
Investments |
| --- |
| November 30, 2010 (unaudited)
(continued) |

| Principal Amount (000s) — $ 1,000 | 5.25%,
5/15/39, Ser. A | Aa3/A+ | Value — $ 1,040,090 |
| --- | --- | --- | --- |
| 1,500 | Fire &
Life Safety Facs. Project, | | |
| | 5.00%,
4/1/32, Ser. B (NPFGC) | A2/A | 1,371,630 |
| 2,800 | San Diego Regional Building Auth. Rev., | | |
| | Cnty.
Operations Center & Annex, | | |
| | 5.375%,
2/1/36, Ser. A | Aa3/AA+ | 2,909,396 |
| 5,000 | San Diego Unified School Dist., GO, | | |
| | 4.75%,
7/1/27, Ser. D-2 (AGM) | Aa1/AA+ | 5,047,650 |
| 1,260 | Santa Cruz Cnty., CP, 5.25%, 8/1/32 | A1/NR | 1,291,916 |
| 1,500 | Santa Cruz Cnty. Redev. Agcy., Tax Allocation, | | |
| | Live
Oak/Soquel Community, 7.00%, 9/1/36, Ser. A | A1/A | 1,668,675 |
| | State, GO, | | |
| 2,500 | 5.00%,
9/1/31 | A1/A– | 2,430,625 |
| 7,000 | 5.00%,
4/1/38 | A1/A– | 6,640,130 |
| 11,000 | 6.00%,
4/1/38 | A1/A– | 11,580,140 |
| | State Public Works Board Rev., | | |
| 3,000 | 5.75%,
10/1/30, Ser. G-1 | A2/BBB+ | 3,064,260 |
| 2,000 | California
State Univ., 6.00%, 11/1/34, Ser. J | Aa3/BBB+ | 2,096,860 |
| 7,915 | Regents
Univ., 5.00%, 3/1/33, Ser. A | Aa2/AA– | 7,778,783 |
| | Statewide Communities Dev. Auth. Rev., | | |
| | Bentley
School (a)(b)(j), | | |
| 11,180 | zero
coupon, 7/1/50 | | |
| | (acquisition
cost–$400,132; purchased 6/24/10) | NR/NR | 298,394 |
| 3,760 | 7.00%,
7/1/40, Ser. A | | |
| | (acquisition
cost–$3,645,621; purchased 6/24/10) | NR/NR | 3,175,508 |
| | Catholic
Healthcare West, | | |
| 1,800 | 5.50%,
7/1/31, Ser. D | A2/A | 1,821,690 |
| 1,800 | 5.50%,
7/1/31, Ser. E | A2/A | 1,821,690 |
| | Huntington
Park Charter School Project, Ser. A, | | |
| 250 | 5.15%,
7/1/30 | NR/NR | 199,065 |
| 1,250 | 5.25%,
7/1/42 | NR/NR | 942,712 |
| 500 | International School of the Peninsula Project, 5.00%,
11/1/29 | NR/NR | 369,845 |
| 2,770 | Kaiser Permanente, 5.50%, 11/1/32, Ser. A | WR/A+ | 2,781,800 |
| 1,000 | Lancer Student Housing Project, 7.50%, 6/1/42 | NR/NR | 1,027,110 |
| 9,700 | Los Angeles Jewish Home, 5.50%, 11/15/33 (CA St. Mtg.) | NR/A– | 8,978,029 |
| | Methodist Hospital Project (FHA), | | |
| 2,000 | 6.25%,
8/1/24 | Aa2/NR | 2,290,300 |
| 2,400 | 6.625%, 8/1/29 | Aa2/NR | 2,696,352 |
| 8,800 | 6.75%,
2/1/38 | Aa2/NR | 9,844,824 |
| 3,700 | St. Joseph, 5.75%, 7/1/47, Ser. A (FGIC) | A1/AA– | 3,717,834 |
| 1,365 | Windrush School, 5.50%, 7/1/37 | NR/NR | 1,097,242 |
| 1,465 | Statewide Financing Auth. Tobacco Settlement Rev., | | |
| | 5.625%,
5/1/29, Ser. A | Baa3/NR | 1,399,471 |
| | Tobacco Securitization Agcy. Rev., | | |
| 4,500 | Alameda
Cnty., 6.00%, 6/1/42 | Baa3/NR | 3,541,860 |
| 1,800 | Stanislaus
Cnty., 5.875%, 6/1/43, Ser. A | Baa3/NR | 1,367,478 |
| 1,000 | Tustin Unified School Dist., Special Tax, | | |
| | 6.00%,
9/1/40, Ser. 2006-1 | NR/BBB | 1,005,750 |
| | Univ. of California Rev., | | |
| 5,500 | 4.75%,
5/15/35, Ser. F (AGM) (h) | Aa1/AA+ | 5,360,080 |
| 5,000 | 4.75%,
5/15/35, Ser. G (FGIC-NPFGC) (h) | Aa1/AA | 4,804,150 |
| 5,650 | 4.75%,
5/15/38, Ser. B | Aa2/AA– | 5,351,454 |

| 11.30.10 | PIMCO Municipal Income Funds II Semi-Annual Report 19

| PIMCO California Municipal Income Fund II Schedule of
Investments |
| --- |
| November 30, 2010 (unaudited)
(continued) |

Principal Amount (000s)			Value
	Ventura Cnty. Community College Dist., GO,
$ 10,000	5.00%,
8/1/27, Ser. A (NPFGC) (h)	Aa2/AA	$ 10,271,800
5,000	5.50%,
8/1/33, Ser. C	Aa2/AA	5,304,050
	Total California Municipal Bonds & Notes
(cost–$397,638,283)		415,608,474
CALIFORNIA VARIABLE RATE NOTES (a)(c)(f) —5.0%
6,035	Desert Community College Dist., GO,
	9.31%,
8/1/32, Ser. 3016-1 (AGC) (e)	NR/AAA	6,241,518
7,500	JPMorgan Chase Putters/Drivers Trust Rev.,
	1.00%,
5/15/40, Ser. 3838 (d)(e)	Aa3/NR	7,317,300
4,000	Los Angeles Community College Dist., GO,
	13.58%,
8/1/33, Ser. 3096 (e)	NR/AA	3,999,000
5,000	San Diego Community College Dist., GO, 9.786%, 2/1/17	NR/AA+	5,347,900
	Total California Variable Rate Notes (cost–$22,335,752)		22,905,718
OTHER MUNICIPAL BONDS & NOTES—3.9%
	New York–0.7%
1,250	Liberty Dev. Corp. Rev., Goldman Sachs Headquarters,
	5.25%,
10/1/35	A1/A	1,255,088
1,900	New York City Municipal Water Finance Auth.
	Water &
Sewer Rev., 5.00%, 6/15/37, Ser. D (h)	Aa1/AAA	1,926,866
			3,181,954
	Ohio–0.3%
2,250	Buckeye Tobacco Settlement Financing Auth. Rev.,
	5.875%,
6/1/47, Ser. A-2	Baa3/BB–	1,570,050
	Puerto Rico–2.9%
2,200	Aqueduct & Sewer Auth. Rev., 6.00%, 7/1/38, Ser. A	Baa1/BBB–	2,265,934
4,000	Electric Power Auth. Rev., 5.25%, 7/1/40, Ser. XX	A3/BBB+	3,952,440
2,505	Public Buildings Auth. Gov’t Facs. Rev.,
	5.00%,
7/1/36, Ser. I (GTD)	A3/BBB–	2,343,778
	Sales Tax Financing Corp. Rev., Ser. A,
1,600	5.00%,
8/1/40 (AGM) (h)	Aa3/AA+	1,540,080
3,000	5.50%,
8/1/42	A1/A+	3,047,220
			13,149,452
	Total Other Municipal Bonds & Notes (cost–$17,315,659)		17,901,456
CORPORATE BONDS & NOTES—0.8%
	Financial Services–0.8%
3,540	International Lease Finance Corp., 5.40%, 2/15/12 (g)
	(cost–$3,132,232)	B1/BB+	3,548,850
	Total Investments (cost–$440,421,926) –100.0%		$ 459,964,498

20 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.10 |

| PIMCO New York Municipal Income Fund II Schedule of
Investments |
| --- |
| November 30, 2010 (unaudited) |

Principal Amount (000s)			Value
NEW YORK MUNICIPAL BONDS & NOTES—86.8%
$ 1,000	Chautauqua
Cnty. Industrial Dev. Agcy. Rev.,
	Dunkirk
Power Project, 5.875%, 4/1/42	Baa3/BB+	$ 1,015,830
2,400	Erie Cnty.
Industrial Dev. Agcy. Rev., Orchard Park, Inc. Project,
	6.00%,
11/15/36, Ser. A	NR/NR	1,940,064
	Liberty Dev. Corp. Rev.,
500	6.375%,
7/15/49	NR/BBB–	517,590
	Goldman
Sachs Headquarters,
3,000	5.25%,
10/1/35	A1/A	3,012,210
4,120	5.25%,
10/1/35 (h)	A1/A	4,136,768
3,500	5.50%,
10/1/37	A1/A	3,682,035
500	Long Island
Power Auth. Rev., 5.00%, 9/1/34, Ser. A (AMBAC)	A3/A–	504,035
	Metropolitan
Transportation Auth. Rev.,
1,850	5.00%,
11/15/30, Ser. A (AGM)	Aa3/AA+	1,855,402
2,000	5.00%,
11/15/34, Ser. B	NR/AA	2,034,600
8,000	5.25%,
11/15/31, Ser. E	A2/A	8,040,880
7,000	5.35%,
7/1/31, Ser. B	Aa3/AAA	7,190,400
5,000	5.50%,
11/15/39, Ser. A	NR/AA	5,303,500
7,000	Monroe
Cnty. Industrial Dev. Corp. Rev.,
	Unity
Hospital Rochester Project, 5.50%, 8/15/40 (FHA) (h)	Aa2/AA–	7,344,890
2,870	Mortgage
Agcy. Rev., 4.75%, 10/1/27, Ser. 128	Aa1/NR	2,887,335
2,400	Nassau
Cnty. Industrial Dev. Agcy. Rev.,
	Amsterdam
at Harborside, 6.70%, 1/1/43, Ser. A	NR/NR	2,273,256
4,000	New York
City, GO, 5.00%, 3/1/33, Ser. I	Aa2/AA	4,081,360
1,500	New York
City Health & Hospital Corp. Rev., 5.00%,
	2/15/30,
Ser. A	Aa3/A+	1,530,945
975	New York
City Industrial Dev. Agcy. Rev.,
	Eger Harbor
Project, 4.95%, 11/20/32, Ser. A (GNMA)	NR/AA+	983,356
1,415	Liberty
Interactive Corp., 5.00%, 9/1/35	Ba2/BB+	1,251,907
1,500	Queens
Baseball Stadium, 6.50%, 1/1/46 (AGC)	Aa3/AA+	1,634,430
1,170	Staten
Island Univ. Hospital Project, 6.45%, 7/1/32, Ser. C	Baa3/NR	1,171,392
1,500	United
Jewish Appeal Federation Project,
	5.00%,
7/1/27, Ser. A	Aa1/NR	1,545,960
	Yankee
Stadium,
2,750	5.00%,
3/1/31 (FGIC)	Baa3/BBB–	2,708,502
2,400	5.00%,
3/1/36 (NPFGC)	Baa1/A	2,277,840
4,900	7.00%,
3/1/49 (AGC)	Aa3/AA+	5,544,399
1,500	New York
City Municipal Water Finance Auth.
	Water &
Sewer Rev., 5.25%, 6/15/40, Ser. EE	Aa2/AA+	1,558,485
500	Second
Generation Resolutions, 5.00%, 6/15/39, Ser. GG-1	Aa2/AA+	511,140
	New York
City Transitional Finance Auth. Rev.,
6,000	5.00%,
11/1/27, Ser. B	Aaa/AAA	6,217,740
5,000	5.25%,
1/15/39, Ser. S-3	Aa3/AA–	5,193,800
	New York
City Trust for Cultural Res. Rev.,
2,700	Julliard
School, 5.00%, 1/1/34, Ser. A	Aa2/AA	2,761,101
6,785	Wildlife
Conservation Society, 5.00%, 2/1/34 (FGIC-NPFGC)	Aa3/AA–	6,821,978
3,600	Port Auth.
of New York & New Jersey Rev.,
	5.00%,
4/15/32, Ser. 125 (AGM)	Aa2/AA+	3,660,156
	State
Dormitory Auth. Rev.,
3,000	5.00%,
3/15/38, Ser. A	NR/AAA	3,069,210
7,490	5.50%,
5/15/31, Ser. A (AMBAC)	Aa3/AA–	8,106,652

| 11.30.10 | PIMCO Municipal Income Funds II Semi-Annual Report 21

| PIMCO New York Municipal Income Fund II Schedule of
Investments |
| --- |
| November 30, 2010 (unaudited)
(continued) |

| Principal Amount (000s) — $ 2,600 | Catholic
Health of Long Island, 5.10%, 7/1/34 | A3/BBB+ | Value — $ 2,540,278 |
| --- | --- | --- | --- |
| 2,000 | Kaleida
Health Hospital, 5.05%, 2/15/25 (FHA) | NR/NR | 2,010,400 |
| 5,300 | Lenox Hill
Hospital, 5.50%, 7/1/30 | Baa3/NR | 5,031,926 |
| 1,320 | Long Island
Univ., 5.25%, 9/1/28 (Radian) | Baa3/NR | 1,323,709 |
| | Memorial
Sloan-Kettering Cancer Center, | | |
| 2,750 | 5.00%,
7/1/35, Ser. 1 | Aa2/AA | 2,795,348 |
| 2,000 | 5.00%,
7/1/36, Ser. A-1 | Aa2/AA | 2,041,640 |
| 2,100 | New York
Univ., 5.00%, 7/1/38, Ser. A | Aa3/AA– | 2,125,011 |
| 1,000 | New York
Univ. Hospital Center, 5.625%, 7/1/37, Ser. B | Baa2/BBB | 1,013,930 |
| 5,850 | North
General Hospital, 5.00%, 2/15/25 | NR/AA– | 5,920,024 |
| 600 | North
Shore-Long Island Jewish Health System, | | |
| | 5.50%,
5/1/37, Ser. A | Baa1/A– | 612,108 |
| 5,000 | Rochester
General Hospital, 5.00%, 12/1/35 (Radian) | WR/NR | 4,662,550 |
| | Teachers
College, | | |
| 4,270 | 5.00%,
7/1/32 (NPFGC) | A1/NR | 4,300,061 |
| 3,000 | 5.50%,
3/1/39 | A1/NR | 3,093,960 |
| 1,000 | The New
School, 5.50%, 7/1/40 (d) | A3/A– | 1,019,340 |
| 3,000 | Yeshiva
Univ., 5.125%, 7/1/34 (AMBAC) | Aa3/NR | 3,054,270 |
| 5,000 | State
Environmental Facs. Corp. Rev., 5.125%, 6/15/38, Ser. A | Aa1/AA+ | 5,212,150 |
| 1,000 | State
Thruway Auth. Rev., 4.75%, 1/1/29, Ser. G (AGM) | Aa3/AA+ | 1,016,410 |
| 6,000 | State Urban
Dev. Corp. Rev., 5.00%, 3/15/36, Ser. B-1 (h) | NR/AAA | 6,163,200 |
| | Triborough
Bridge & Tunnel Auth. Rev., | | |
| 710 | 5.00%,
1/1/32, Ser. A (FGIC-TCRS) | Aa2/AA– | 714,111 |
| 5,000 | 5.25%,
11/15/34, Ser. A-2 (h) | Aa2/AA– | 5,227,800 |
| 150 | Troy Rev.,
Rensselaer Polytechnic Institute, | | |
| | 5.125%,
9/1/40, Ser. A | A3/A | 149,648 |
| 1,815 | Ulster
Cnty. Industrial Dev. Agcy. Rev., 6.00%, 9/15/37, Ser. A | NR/NR | 1,426,372 |
| 2,000 | Warren
& Washington Cntys. Industrial Dev. Agcy. Rev., | | |
| | Glens Falls
Hospital Project, 5.00%, 12/1/35, Ser. A (AGM) | Aa3/AA+ | 2,004,400 |
| 1,000 | Yonkers
Economic Dev. Corp. Rev., 6.00%, 10/15/30, Ser. A | NR/BB+ | 966,180 |
| 600 | Yonkers
Industrial Dev. Agcy. Rev., Sarah Lawrence | | |
| | College
Project, 6.00%, 6/1/41, Ser. A | NR/A | 625,926 |
| | Total New
York Municipal Bonds & Notes (cost–$172,930,026) | | 177,419,900 |
| OTHER MUNICIPAL BONDS & NOTES—10.4% | | | |
| | California–0.5% | | |
| 1,000 | Health
Facs. Financing Auth. Rev., Catholic Healthcare West, | | |
| | 6.00%,
7/1/39, Ser. A | A2/A | 1,041,410 |
| | Florida–1.0% | | |
| 1,000 | Clearwater
Rev., 5.25%, 12/1/39, Ser. A | Aa3/AA– | 1,036,250 |
| 1,000 | Miami-Dade
Cnty. Airport Rev., 5.50%, 10/1/36, Ser. A | A2/A– | 1,013,170 |
| | | | 2,049,420 |
| | Louisiana–0.5% | | |
| 1,000 | East Baton
Rouge Sewerage Commission Rev., | | |
| | 5.25%,
2/1/39, Ser. A | Aa2/AA– | 1,040,990 |

22 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.10 |

| PIMCO New York Municipal Income Fund II Schedule of
Investments |
| --- |
| November 30, 2010 (unaudited)
(continued) |

Principal Amount (000s)			Value
	Ohio–0.5%
$ 1,435	Buckeye
Tobacco Settlement Financing Auth. Rev.,
	5.875%,
6/1/47, Ser. A-2	Baa3/BB–	$ 1,001,343
	Puerto Rico–7.4%
4,600	Aqueduct
& Sewer Auth. Rev., 6.00%, 7/1/38, Ser. A	Baa1/BBB–	4,737,862
5,675	Children’s
Trust Fund Rev., 5.625%, 5/15/43	Baa3/BBB	4,918,125
	Sales Tax
Financing Corp. Rev., Ser. A,
14,250	zero
coupon, 8/1/54 (AMBAC)	Aa2/AA–	798,713
12,900	zero
coupon, 8/1/56	Aa2/AA–	622,554
2,000	5.00%,
8/1/40 (AGM) (h)	Aa3/AA+	1,925,100
1,000	5.50%,
8/1/42	A1/A+	1,015,740
1,000	5.75%,
8/1/37	A1/A+	1,034,360
			15,052,454
	U.S. Virgin Islands–0.5%
1,000	Public
Finance Auth. Rev., 6.00%, 10/1/39, Ser. A	Baa3/NR	1,036,630
	Total Other
Municipal Bonds & Notes (cost–$22,603,377)		21,222,247
NEW YORK VARIABLE RATE NOTES (a)(c)(e)(f) —2.8%
	JPMorgan
Chase Putters/Drivers Trust Rev.,
5,000	9.25%,
7/1/33, Ser. 3382	Aa1/NR	5,289,600
500	9.772%,
6/15/31, Ser. 3223	NR/AA+	568,150
	Total New
York Variable Rate Notes (cost–$5,393,769)		5,857,750
	Total Investments (cost–$200,927,172)– 100.0%		$ 204,499,897

| 11.30.10 | PIMCO Municipal Income Funds II Semi-Annual Report 23

| PIMCO Municipal Income Funds II Notes to
Schedule of Investments |
| --- |
| November 30, 2010 (unaudited) |

Notes to Schedule of Investments:
(a)	Private Placement–Restricted as to resale and may not have
a readily available market. Securities with an aggregate value of
$32,679,911, representing 3.1% of total investments in Municipal Income II,
$27,797,765, representing 6.0% of total investments in California Municipal
II and $5,857,750, representing 2.9% of total investments in New York
Municipal II.
(b)	Illiquid.
(c)	144A–Exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, typically only to qualified institutional buyers. Unless
otherwise indicated, these securities are not considered to be illiquid.
(d)	When-issued or delayed-delivery. To be settled/delivered
after November 30, 2010.
(e)	Inverse Floater–The interest rate shown bears an inverse
relationship to the interest rate on another security or the value of an
index. The interest rate disclosed reflects the rate in effect on November
30, 2010.
(f)	Variable Rate Notes–Instruments whose interest rates
change on specified date (such as a coupon date or interest payment date)
and/or whose interest rates vary with changes in a designated base rate (such
as the prime interest rate). The interest rate disclosed reflects the rate in
effect on November 30, 2010.
(g)	All or partial amount segregated for the benefit of the
counterparty as collateral for reverse repurchase agreements.
(h)	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 each Fund acquired the residual interest
certificates. These securities serve as collateral in a financing
transaction.
(i)	Step Bond–Coupon is a fixed rate for an initial period
then resets at a specific date and rate.
(j)	Restricted. The aggregate acquisition cost and market
value of such securities is $4,045,753 and $3,473,902, respectively
representing 0.8% of total investments in California Municipal II.
(k)	In default.

Glossary:
AGC — insured by Assured Guaranty Corp.
AGM — insured by Assured Guaranty Municipal Corp.
AMBAC — insured by American Municipal Bond Assurance Corp.
CA Mtg. Ins. — insured by California Mortgage Insurance
CA St. Mtg. — insured by California State Mortgage
CP — Certificates of Participation
FGIC — insured by Financial Guaranty Insurance Co.
FHA — insured by Federal Housing Administration
GNMA — insured by Government National Mortgage Association
GO — General Obligation Bond
GTD — Guaranteed
IBC — Insurance Bond Certificate
NPFGC — insured by National Public Finance Guarantee Corp.
NR — Not Rated
PSF — Public School Fund
Radian — insured by Radian Guaranty, Inc.
TCRS — Temporary Custodian Receipts
WR — Withdrawn Rating

24 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.10 | See accompanying Notes to Financial Statements

| P IMCO Municipal
Income Funds II Statements of Assets and
Liabilities |
| --- |
| November 30, 2010 (unaudited) |

| | Municipal
II | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| Assets: | | | | | | |
| Investments,
at value (cost – $1,069,257,599, $440,421,926 and $200,927,172, respectively) | $1,069,288,328 | | $459,964,498 | | $204,499,897 | |
| Cash | 3,101,090 | | — | | 829,648 | |
| Interest
receivable | 20,350,796 | | 7,795,968 | | 2,943,138 | |
| Receivable
for investments sold | 1,030 | | 489,865 | | — | |
| Prepaid
expenses and other assets | 61,882 | | 61,005 | | 26,202 | |
| Total
Assets | 1,092,803,126 | | 468,311,336 | | 208,298,885 | |
| Liabilities: | | | | | | |
| Payable for
floating rate notes issued | 86,469,472 | | 46,820,833 | | 13,851,894 | |
| Dividends
payable to common and preferred shareholders | 3,927,437 | | 1,961,715 | | 717,830 | |
| Payable for
investments purchased | 3,478,905 | | 7,389,417 | | 964,610 | |
| Interest
payable | 773,575 | | 127,370 | | 99,972 | |
| Investment
management fees payable | 540,474 | | 219,625 | | 103,978 | |
| Payable to
custodian for cash overdrafts | — | | 1,444,281 | | — | |
| Payable for
reverse repurchase agreements | — | | 3,281,580 | | — | |
| Interest
payable for reverse repurchase agreements | — | | 1,126 | | — | |
| Accrued
expenses and other liabilities | 241,777 | | 1,903,770 | | 265,310 | |
| Total
Liabilities | 95,431,640 | | 63,149,717 | | 16,003,594 | |
| Preferred Shares ($0.00001 par value and $25,000 liquidation preference
per share applicable to an aggregate of 14,680, 6,520 and 3,160 shares issued
and outstanding, respectively) | 367,000,000 | | 163,000,000 | | 79,000,000 | |
| Net Assets Applicable to Common Shareholders | $630,371,486 | | $242,161,619 | | $113,295,291 | |
| Composition of Net Assets Applicable to Common Shareholders: | | | | | | |
| Common
Shares: | | | | | | |
| Par value
($0.00001 per share) | $ 601 | $ | 313 | $ | 108 | |
| Paid-in-capital
in excess of par | 851,283,462 | | 432,477,484 | | 152,478,487 | |
| Undistributed
(dividends in excess of) net investment income | 12,181,899 | | (2,676,604 | ) | 1,530,343 | |
| Accumulated
net realized loss on investments | (233,123,645 | ) | (207,269,873 | ) | (44,307,118 | ) |
| Net
unrealized appreciation of investments | 29,169 | | 19,630,299 | | 3,593,471 | |
| Net Assets Applicable to Common Shareholders | $630,371,486 | | $242,161,619 | | $113,295,291 | |
| Common
Shares Issued and Outstanding | 60,149,356 | | 31,261,451 | | 10,784,537 | |
| Net Asset Value Per Common Share | $10.48 | | $7.75 | | $10.51 | |

See accompanying Notes to Financial Statements | 11.30.10 | PIMCO Municipal Income Funds II Semi-Annual Report 25

| P IMCO Municipal
Income Funds II Statements of Operations |
| --- |
| Six Months ended November 30,
2010 (unaudited) |

| | Municipal
II | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| Investment Income: | | | | | | |
| Interest | $ 31,403,585 | $ | 13,066,035 | $ | 5,748,675 | |
| Expenses: | | | | | | |
| Investment
management fees | 3,335,138 | | 1,365,547 | | 643,894 | |
| Interest
expense | 377,370 | | 56,041 | | 52,491 | |
| Auction
agent fees and commissions | 286,788 | | 131,669 | | 64,789 | |
| Custodian
and accounting agent fees | 70,883 | | 47,717 | | 31,626 | |
| Trustees’
fees and expenses | 52,317 | | 22,898 | | 10,526 | |
| Shareholder
communications | 50,505 | | 25,861 | | 11,093 | |
| Audit and
tax services | 41,911 | | 27,296 | | 22,468 | |
| New York
Stock Exchange listing fees | 29,413 | | 15,312 | | 12,913 | |
| Legal fees | 28,714 | | 10,980 | | 6,233 | |
| Transfer
agent fees | 15,107 | | 15,738 | | 16,689 | |
| Insurance
expense | 12,763 | | 5,513 | | 2,763 | |
| Miscellaneous | 6,688 | | 6,707 | | 4,557 | |
| Total
Expenses | 4,307,597 | | 1,731,279 | | 880,042 | |
| Less:
custody credits earned on cash balances | (766 | ) | (171 | ) | (314 | ) |
| Net
Expenses | 4,306,831 | | 1,731,108 | | 879,728 | |
| Net Investment Income | 27,096,754 | | 11,334,927 | | 4,868,947 | |
| Realized and Change in Unrealized Gain (Loss) | | | | | | |
| Net
realized gain on investments | 12,010,551 | | 984,149 | | 479,226 | |
| Net change
in unrealized appreciation/depreciation of investments | (32,115,175 | ) | (11,748,484 | ) | (5,118,241 | ) |
| Net
realized and change in unrealized loss on investments | (20,104,624 | ) | (10,764,335 | ) | (4,639,015 | ) |
| Net Increase in Net Assets Resulting from Investment Operations | 6,992,130 | | 570,592 | | 229,932 | |
| Dividends on Preferred Shares from Net Investment Income | (770,126 | ) | (342,045 | ) | (165,389 | ) |
| Net Increase in Net Assets Applicable to Common Shareholders Resulting
from Investment Operations | $ 6,222,004 | $ | 228,547 | $ | 64,543 | |

26 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.10 | See accompanying Notes to Financial Statements

P IMCO Municipal Income Funds II
Applicable
to Common Shareholders

Municipal II:	Six Months ended November 30, 2010 (unaudited)
Investment Operations:
Net investment income	$ 27,096,754	$	52,452,681
Net realized gain on investments	12,010,551		151,024
Net change in unrealized appreciation/depreciation of
investments	(32,115,175	)	103,180,602
Net increase in net assets resulting from investment
operations	6,992,130		155,784,307
Dividends to Preferred Shareholders from
Net Investment Income	(770,126	)	(1,651,157	)
Net
increase in net assets applicable to common shareholders resulting from
investment operations	6,222,004		154,133,150
Dividends to Common Shareholders from Net
Investment Income	(23,429,411	)	(46,637,024	)
Common Share Transactions:
Reinvestment of dividends	1,990,035		4,046,441
Total
increase (decrease) in net assets applicable to common shareholders	(15,217,372	)	111,542,567
Net Assets Applicable to Common
Shareholders:
Beginning of period	645,588,858		534,046,291
End of
period (including undistributed net investment income of $12,181,899 and
$9,284,682, respectively)	$ 630,371,486	$	645,588,858
Common Shares Issued in Reinvestment of
Dividends	180,112		400,876
California Municipal II:
Investment Operations:
Net investment income	$ 11,334,927	$	23,419,545
Net realized gain (loss) on investments	984,149		(2,327,882	)
Net change in unrealized appreciation/depreciation of
investments	(11,748,484	)	23,246,648
Net increase in net assets resulting from investment
operations	570,592		44,338,311
Dividends to Preferred Shareholders from
Net Investment Income	(342,045	)	(777,175	)
Net increase in net assets applicable to common
shareholders
resulting from investment operations	228,547		43,561,13
Dividends to Common Shareholders from Net
Investment Income	(11,709,199	)	(24,003,858	)
Common Share Transactions:
Reinvestment of dividends	826,666		1,843,810
Total
increase (decrease) in net assets applicable to common shareholders	(10,653,986	)	21,401,088
Net Assets Applicable to Common
Shareholders:
Beginning of period	252,815,605		231,414,517
End of
period (including dividends in excess of net investment income of
$(2,676,604) and $(1,960,287), respectively)	$ 242,161,619	$	252,815,605
Common Shares Issued in Reinvestment of Dividends	91,139		220,172

See accompanying Notes to Financial Statements | 11.30.10 | PIMCO Municipal Income Funds II Semi-Annual Report 27

PIMCO Municipal Income Funds II
Applicable
to Common Shareholders (continued)

New York Municipal II:

	Six Months ended November 30, 2010 (unaudited)
Investment Operations:
Net
investment income	$ 4,868,947	$	10,474,659
Net
realized gain (loss) on investments	479,226		(770,215	)
Net change
in unrealized appreciation/depreciation of investments	(5,118,241	)	13,497,488
Net
increase in net assets resulting from investment operations	229,932		23,201,932
Dividends to Preferred Shareholders from Net Investment Income	(165,389	)	(363,065	)
Net
increase in net assets applicable to common shareholders resulting from
investment operations	64,543		22,838,867
Dividends
to Common Shareholders from Net Investment Income	(4,281,717	)	(8,524,998	)
Common Share Transactions:
Reinvestment
of dividends	351,464		721,255
Total
increase (decrease) in net assets applicable to common shareholders	(3,865,710	)	15,035,124
Net Assets Applicable to Common Shareholders:
Beginning
of period	117,161,001		102,125,877
End of
period (including undistributed net investment income of $1,530,343 and
$1,108,502, respectively)	$ 113,295,291	$	117,161,001
Common Shares Issued in Reinvestment of Dividends	31,061		68,673

28 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.10 | See accompanying Notes to Financial Statements

| P IMCO California Municipal Income Fund II Statement of
Cash Flows† | | |
| --- | --- | --- |
| Six Months ended November 30,
2010 (unaudited) | | |
| Decrease in Cash from: | | |
| Cash Flows provided by Operating
Activities: | | |
| Net
increase in net assets resulting from investment operations | $ 570,592 | |
| Adjustments to Reconcile Net Increase in Net Assets Resulting from Investment Operations to Net Cash provided by Operating Activities: | | |
| Purchases
of long-term investments | (41,587,200 | ) |
| Proceeds
from sales of long-term investments | 41,469,318 | |
| Sales of
short-term portfolio investments, net | 5,000,000 | |
| Net change
in unrealized appreciation/depreciation of investments | 11,912,028 | |
| Net
realized gain on investments | (1,232,202 | ) |
| Net
amortization on investments | (496,248 | ) |
| Increase in
receivable for investments sold | (489,865 | ) |
| Increase in
interest receivable | (593,502 | ) |
| Increase in
prepaid expenses and other assets | (17,148 | ) |
| Increase in
payable for investments purchased | 7,389,417 | |
| Decrease in
investment management fees payable | (9,612 | ) |
| Decrease in
interest payable for reverse repurchase agreements | (1,778 | ) |
| Decrease in
accrued expenses and other liabilities | (24,692 | ) |
| Net cash provided by operating
activities* | 21,889,108 | |
| Cash Flows used for Financing Activities: | | |
| Decrease in
payable for reverse repurchase agreements | (4,608,543 | ) |
| Cash
dividends paid (excluding reinvestment of dividends of $826,666) | (11,223,150 | ) |
| Cash
payments on retirement of floating rate notes | (7,502,889 | ) |
| Increase in
payable to custodian for cash overdraft | 1,444,281 | |
| Net cash used for financing activities | (21,890,301 | ) |
| Net decrease in cash | (1,193 | ) |
| Cash at beginning of period | 1,193 | |
| Cash at end of period | $ — | |

| † | Statement of Cash Flows is not required for Municipal II
or New York Municipal II. |
| --- | --- |
| * | Included in operating expenses is cash paid for interest
primarily related to participation in reverse repurchase agreement
transactions of $15,885. |

See accompanying Notes to Financial Statements | 11.30.10 | PIMCO Municipal Income Funds II Semi-Annual Report 29

| PIMCO Municipal Income Funds II Notes to Financial
Statements |
| --- |
| November 30, 2010 (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”), each a “Fund” and collectively referred to as the “Funds” or “PIMCO Municipal Income Funds II”, were organized as Massachusetts business trusts on March 29, 2002. Prior to commencing operations on June 28, 2002, the Funds had no operations other than matters relating to their organization and registration as 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, wholly-owned subsidiary of Allianz SE, a publicly traded European insurance and financial services company. Each Fund has an unlimited amount of $0.00001 par value per share of common shares 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 generally seek to avoid investing in 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. There is no guarantee that the Funds will meet their stated objectives.

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 Funds’ 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 that 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 that have not yet occurred.

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. Market value is generally determined on the basis of last reported sales prices, or if no sales are reported, on the basis of quotes obtained from a quotation reporting system, established market makers, or independent pricing services.

Portfolio securities and other financial instruments for which market quotations are not readily available or for which a development/event occurs that may significantly impact the value of a security, are fair-valued, in good faith, pursuant to procedures established by the Board of Trustees, or persons acting at their discretion pursuant to procedures established by the Board of Trustees. The 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 mean between the last quoted bid and ask price. Independent pricing services use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily until settlement at the forward settlement date. 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 these differences could be material to the Funds’ financial statements. Each Fund’s net asset value is normally determined as of the close of regular trading (normally, 4:00 p.m. Eastern time) on the New York Stock Exchange (“NYSE”) on each day the NYSE is open for business.

30 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.10 |

| PIMCO Municipal Income Funds II Notes to Financial
Statements |
| --- |
| November 30, 2010 (unaudited) |

1. Organization and Significant Accounting Policies (continued)

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

| • | Level 1 – quoted
prices in active markets for identical investments that the Funds have the
ability to access |
| --- | --- |
| • | Level 2 –
valuations based on other significant observable inputs (including quoted
prices for similar investments, interest rates, prepayment speeds, credit
risk, etc.) or quotes from inactive exchanges |
| • | Level 3 –
valuations based on significant unobservable inputs (including the Funds’ own
assumptions in determining the fair value of investments) |

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

The valuation techniques used by the Funds to measure fair value during the six months ended November 30, 2010 maximized the use of observable inputs and minimized the use of unobservable inputs.

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

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

Corporate Bonds and Notes – Corporate bonds and notes are generally comprised of two main categories: consisting of investment grade bonds and high yield bonds. Investment grade bonds are valued by independent pricing services using various inputs and techniques, which include broker-dealer quotations, live trading levels, recently executed transactions in securities of the issuer or comparable issuers, and option adjusted spread models that include base curve and spread curve inputs. Adjustments to individual bonds can be applied to recognize trading differences compared to other bonds issued by the same issuer. High yield bonds are valued by independent pricing services based primarily on broker-dealer quotations from relevant market makers and recently executed transactions in securities of the issuer or comparable issuers. The broker-dealer quotations received are supported by credit analysis of the issuer that takes into consideration credit quality assessments, daily trading activity, and the activity of the underlying equities, listed bonds and sector-specific trends. To the extent that these inputs are observable, the values of corporate bonds and notes are categorized as Level 2. To the extent that these inputs are unobservable the values are categorized as Level 3.

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

A summary of the inputs used at November 30, 2010 in valuing each Fund’s assets and liabilities is listed below:

Municipal II: — Level 1 – Quoted Prices		Level 2 – Other Significant Observable Inputs	Level 3 – Significant Unobservable Inputs	Value at 11/30/10
Investments
in Securities – Assets
Municipal Bonds
& Notes	—	$ 1,039,030,506	—	$ 1,039,030,506
Variable Rate Notes	—	30,257,822	—	30,257,822
Total
Investments	—	$ 1,069,288,328	—	$ 1,069,288,328

| 11.30.10 | PIMCO Municipal Income Funds II Semi-Annual Report 31

| PIMCO Municipal Income Funds II Notes to Financial
Statements |
| --- |
| November
30, 2010 (unaudited) |

1. Organization and Significant Accounting Policies (continued)

California Municipal II:

		Level 2 – Other Significant Observable Inputs		Value at 11/30/10
Investments
in Securities – Assets
California
Municipal Bonds & Notes	—	$ 415,608,474	—	$ 415,608,474
California Variable
Rate Notes	—	22,905,718	—	22,905,718
Other Municipal
Bonds & Notes	—	17,901,456	—	17,901,456
Corporate Bonds
& Notes	—	3,548,850	—	3,548,850
Total
Investments	—	$ 459,964,498	—	$ 459,964,498

New York Municipal II:

		Level 2 – Other Significant Observable Inputs		Value at 11/30/10
Investments
in Securities – Assets
New York Municipal
Bonds & Notes	—	$ 177,419,900	—	$ 177,419,900
Other Municipal
Bonds & Notes	—	21,222,247	—	21,222,247
New York Variable
Rate Notes	—	5,857,750	—	5,857,750
Total
Investments	—	$ 204,499,897	—	$ 204,499,897

There were no significant transfers between Levels 1 and 2 during the six months ended November 30, 2010.

(c) Investment Transactions and Investment Income Investment transactions are accounted for on the trade date. Securities purchased and sold on a when-issued or delayed-delivery basis may be settled a month or more after the trade date. Realized gains and losses on investments are determined on an identified cost basis. Interest income adjusted for the accretion of discount and amortization of premium is recorded on an accrual basis. Discounts or premiums on debt securities purchased are accreted or amortized, respectively, to interest income over the lives of the respective securities.

(d) 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.

Accounting for uncertainty in income taxes 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 Funds’ management has determined that its evaluation has resulted in no material impact to the Funds’ financial statements at November 30, 2010. The Funds’ federal tax returns for the prior three years remain subject to examination by the Internal Revenue Service.

(e) Dividends and Distributions – Common Shares 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. The Funds record dividends and distributions to their respective 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 GAAP. 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 to shareholders from return of capital.

32 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.10 |

| PI MCO Municipal
Income Funds II |
| --- |
| November 30, 2010 (unaudited) |

1. Organization and Significant Accounting Policies (continued)

(f) Reverse Repurchase Agreements In a reverse repurchase agreement, the Funds sell securities to a bank or broker-dealer and agree to repurchase the securities at a mutually agreed upon date and price. Generally, the effect of such a transaction is that the Funds can recover and reinvest all or most of the cash invested in portfolio securities involved during the term of the reverse repurchase agreement and still be entitled to the returns associated with those portfolio securities. Such transactions are advantageous if the interest cost to the Funds of the reverse repurchase transaction is less than the returns it obtains on investments purchased with the cash. To the extent a Fund does not cover its positions in reverse repurchase agreements (by segregating liquid assets at least equal in amount to the forward purchase commitment), the Fund’s uncovered obligations under the agreements will be subject to the Fund’s limitations on borrowings. Reverse repurchase agreements involve leverage risk and also the risk that the market value of the securities that the Funds are obligated to repurchase under an agreement may decline below the repurchase price. In the event the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, the Funds’ use of the proceeds of the agreement may be restricted pending determination by the other party, or their trustee or receiver, whether to enforce the Funds’ obligation to repurchase the securities.

(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 inverse floating rate 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. 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 issued” 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 Funds may also invest in Inverse Floaters for the purpose of increasing leverage.

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 vice 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 in an investment in Fixed Rate Bonds.

The Funds’ restrictions on borrowings do not apply to the secured borrowings deemed to have occurred for accounting purposes. Inverse Floaters held by the Funds are exempt from registration under Rule 144A of the Securities Act of 1933.

In addition to general market risks, the Funds’ investments in Inverse Floaters may involve greater risk and volatility than an investment in a fixed rate bond, and the value of Inverse Floaters may decrease significantly when market interest rates increase. Inverse Floaters have varying degrees of liquidity, and the market for these securities may be volatile. These securities tend to underperform the market for fixed rate bonds in a rising interest rate environment, but tend to outperform the market for fixed rate bonds when interest rates decline or remain relatively stable. Although volatile, Inverse Floaters typically offer the potential for yields exceeding the yields available on fixed rate bonds with comparable credit quality, coupon, call provisions and maturity. Trusts in which Inverse Floaters may be held could be terminated due to market, credit or other events beyond the Funds’ control, which could require the Funds to reduce leverage and dispose of portfolio investments at inopportune times and prices.

(h) When-Issued/Delayed-Delivery Transactions When-issued or delayed-delivery 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 the 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

| 11.30.10 | PIMCO Municipal Income Funds II Semi-Annual Report 33

PIMCO Municipal Income Funds II
November 30, 2010 (unaudited)

1. Organization and Significant Accounting Policies (continued)

delivered, which may result in a realized gain or loss. When a security is sold on a delayed-delivery basis, the Funds do not participate in future gains and losses with respect to the security.

(i) Custody Credits 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. Cash overdraft charges, if any, are included in custodian and accounting agent fees.

(j) Interest Expense Interest expense primarily relates to the Funds’ participation in floating rate notes held by third parties in conjunction with Inverse Floater transactions and reverse repurchase agreement transactions. Interest expense on reverse repurchase agreements is recorded as it is incurred.

2. Principal Risks In the normal course of business, the Funds trade financial instruments and enter into financial transactions where risk of potential loss exists due to, among other things, changes in the market (market risk) or failure of the other party to a transaction to perform (counterparty risk). The Funds are also exposed to various risks such as, but not limited to, interest rate and credit risks.

Interest rate risk is the risk that fixed income securities will decline in value because of changes in interest rates. As nominal interest rates rise, the value of certain fixed income securities held by the Funds are likely to decrease. A nominal interest rate can be described as the sum of a real interest rate and an expected inflation rate. Fixed income securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations. Duration is used primarily as a measure of the sensitivity of a fixed income security’s market price to interest rate (i.e. yield) movements.

Variable and floating rate securities generally are less sensitive to interest rate changes but may decline in value if their interest rates do not rise as much, or as quickly, as interest rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. Inverse floating rate securities may decrease in value if interest rates increase. Inverse floating rate securities may also exhibit greater price volatility than a fixed rate obligation with similar credit quality. When the Funds hold variable or floating rate securities, a decrease (or, in the case of inverse floating rate securities, an increase) in market interest rates will adversely affect the income received from such securities and the net asset value of the Funds’ shares.

The Funds are exposed to credit risk, which is the risk of losing money if the issuer or guarantor of a fixed income security is unable or unwilling, or is perceived (whether by market participants, rating agencies, pricing services or otherwise) as unable or unwilling, to make timely principal and/or interest payments, or to otherwise honor its obligations. Securities are subject to varying degrees of credit risk, which are often reflected in credit ratings.

The Funds are exposed to counterparty risk, or the risk that an institution or other entity with which the Funds have unsettled or open transactions will default. The potential loss to the Funds could exceed the value of the financial assets recorded in the Funds’ financial statements. Financial assets, which potentially expose the Funds to counterparty risk, consist principally of cash due from counterparties and investments. The Funds’ Sub-Adviser, Pacific Investment Management Company LLC (the “Sub-Adviser”), an affiliate of the Investment Manager, seeks to minimize the Funds’ counterparty risk by performing reviews of each counterparty and by minimizing concentration of counterparty risk by undertaking transactions with multiple customers and counterparties on recognized and reputable exchanges. Delivery of securities sold is only made once the Funds have received payment. Payment is made on a purchase once the securities have been delivered by the counterparty. The trade will fail if either party fails to meet its obligation.

3. Investment Manager/Sub-Adviser Each Fund has an Investment Management Agreement (each an “Agreement”) with the Investment Manager. Subject to the supervision of the Funds’ Board of Trustees, the Investment Manager is responsible for managing, either directly or through others selected by it, each Fund’s investment activities, business affairs and administrative matters. Pursuant to each Agreement, the Investment Manager receives an annual fee, payable monthly, at an annual rate of 0.65% of each Fund’s average daily net assets, inclusive of net assets attributable to any Preferred Shares that maybe outstanding.

The Investment Manager has retained the ‘Sub-Adviser to manage each Fund’s investments. Subject to the supervision of the Investment Manager, the Sub-Adviser is responsible for making all of the Funds’ investment decisions. The Investment Manager, and not the Funds, pays a portion of the fees it receives as Investment Manager to the Sub-Adviser in return for its services.

34 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.10 |

PIMCO Municipal Income Funds II
November 30, 2010 (unaudited)

4. Investments in Securities Purchases and sales of investments, other than short-term securities, for the six months ended November 30, 2010, were:

	Municipal II	California Municipal II	New York Municipal II
Purchases	$ 110,437,980	$ 41,587,200	$ 12,595,973
Sales	117,433,265	41,469,318	6,486,464

(a) Open reverse repurchase agreements at November 30, 2010 were:

California Municipal II:

Counterparty	Rate	Trade Date	Maturity Date	Principal & Interest	Principal
Bank
of America	0.65%	11/12/10	12/13/10	$ 3,282,706	$ 3,281,580

The weighted average daily balance of reverse repurchase agreements outstanding during the six months ended November 30, 2010 for California Municipal II and New York Municipal II was $4,577,935 and $3,912,118 respectively at a weighted average interest rate of 0.61% and 0.68%, respectively. For California Municipal II, at November 30, 2010 the total market value of underlying collateral (please refer to the California Municipal II Schedules of Investments for positions segregated for the benefit of the counterparty as collateral for reverse repurchase agreements) for open reverse repurchase agreements for the benefit of the counterparty was $3,548,850.

(b) Floating rate notes:

The weighted average daily balance of floating rate notes outstanding during the six months ended November 30, 2010 for Municipal II, California Municipal II and New York Municipal II was $85,162,546, $50,624,686 and $9,849,252 respectively at a weighted average interest rate, including fees, of 0.44%, 0.08% and 0.46%, respectively.

5. 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, 2010 was:

| Municipal
II | $981,646,055 | $37,146,259 | $36,135,169 | $1,011,090 |
| --- | --- | --- | --- | --- |
| California
Municipal II | 393,092,804 | 26,020,380 | 7,781,271 | 18,239,109 |
| New
York Municipal II | 186,860,121 | 7,731,134 | 4,161,798 | 3,569,336 |

The difference between book and tax cost is attributable to inverse floater transactions.

6. Auction-Rate Preferred Shares Municipal II has 2,936 shares of Preferred Shares Series A, 2,936 shares of Preferred Shares Series B, 2,936 shares of Preferred Shares Series C, 2,936 shares of Preferred Shares Series D and 2,936 shares of Preferred Shares Series E outstanding, each with a liquidation preference of $25,000 per share plus any accumulated, unpaid dividends.

California Municipal II has 1,304 shares of Preferred Shares Series A, 1,304 shares of Preferred Shares Series B, 1,304 shares of Preferred Shares Series C, 1,304 shares of Preferred Shares Series D and 1,304 shares of Preferred Shares Series E outstanding, each with a liquidation preference of $25,000 per share plus any accumulated, unpaid dividends.

New York Municipal II has 1,580 shares of Preferred Shares Series A and 1,580 shares of Preferred Shares Series B outstanding, each with a liquidation preference of $25,000 per share plus any accumulated, unpaid dividends.

Dividends are accumulated daily at an annual rate (typically re-set every seven days) through auction procedures. Distributions of net realized capital gains, if any, are paid annually.

| 11.30.10 | PIMCO Municipal Income Funds II Semi-Annual Report 35

| PIMCO
Municipal Income Funds II Notes to Financial Statements |
| --- |
| November 30, 2010 (unaudited) |

6. Auction-Rate Preferred Shares (continued)

For the six months ended November 30, 2010, the annualized dividend rates for each Fund ranged from:

| | High | Low | At November 30,
2010 |
| --- | --- | --- | --- |
| Municipal II: | | | |
| Series A | 0.472% | 0.35 % | 0.411% |
| Series B | 0.472% | 0.381 % | 0.442% |
| Series C | 0.472% | 0.35 % | 0.442% |
| Series D | 0.472% | 0.35 % | 0.442% |
| Series E | 0.472% | 0.35 % | 0.442% |
| California Municipal II: | | | |
| Series A | 0.472% | 0.35 % | 0.411% |
| Series B | 0.472% | 0.381 % | 0.442% |
| Series C | 0.472% | 0.35 % | 0.442% |
| Series D | 0.472% | 0.35 % | 0.442% |
| Series E | 0.472% | 0.35 % | 0.442% |
| New York Municipal II: | | | |
| Series A | 0.472% | 0.35 % | 0.442% |
| Series B | 0.472% | 0.35 % | 0.442% |

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 or paying any dividends or distributions to common shareholders or repurchasing common shares and/or could trigger the mandatory redemption of Preferred Shares at their liquidation preference plus any accumulated, unpaid dividends.

Preferred shareholders, who are entitled to one vote per share, generally vote together with the common shareholders but vote separately as a class to elect two Trustees and on any matters affecting the rights of the Preferred Shares.

Since mid-February 2008, holders of auction-rate preferred shares (“ARPS”) issued by the Funds have been directly impacted by an unprecedented lack of liquidity, which has similarly affected ARPS holders in many of the nation’s closed-end funds. Since then, regularly scheduled auctions for ARPS issued by the Funds have consistently “failed” because of insufficient demand (bids to buy shares) to meet the supply (shares offered for sale) at each auction. In a failed auction, ARPS holders cannot sell all, and may not be able to sell any, of their shares tendered for sale. While repeated auction failures have affected the liquidity holders have continued to receive dividends at the defined “maximum rate”, the higher of the 30-day “AA” Composite Commercial Paper Rate multiplied by a minimum of 110% (depending on the credit rating of the ARPS) or the Taxable Equivalent of the Short-Term Municipal Obligation Rate-defined as 90% of the quotient of (A) the per annum rate expressed on an interest equivalent basis equal to the Kenny S&P 30-day High Grade Index divided by (B) 1.00 minus the Marginal Tax Rate (expressed as a decimal) multiplied by a minimum of 110% (depending on the credit rating of the ARPS) (which is a function of short-term interest rates and typically higher than the rate that would have otherwise been set through a successful auction). If the Funds’ ARPS auctions continue to fail and the “maximum rate” payable on the ARPS rises as a result of changes in short-term interest rates, returns for the Funds’ common shareholders could be adversely affected.

See Note 7 — “Legal Proceedings” below for a discussion of shareholder demand letter received by certain closed end funds managed by the Investment Manager.

7. Legal Proceedings In June and September 2004, the Investment Manager and certain of its affiliates (including PEA Capital LLC (“PEA”), Allianz Global Investors Distributors LLC and Allianz Global Investors of America, L.P.) agreed to settle, without admitting or denying the allegations, claims brought by the Securities and Exchange Commission (“SEC”) and the New Jersey 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. The settlements related to an alleged “market timing” arrangement in certain open-end funds formerly sub-advised by PEA. The Investment Manager and its affiliates agreed to pay a total of $68 million to settle the claims. In addition to monetary payments, the settling parties agreed to undertake certain corporate governance, compliance and disclosure reforms related to market timing, and consented to cease and desist orders and censures. Subsequent to these events, PEA deregistered as an investment adviser and dissolved. None of the settlements alleged that any inappropriate activity took place with respect to the Funds.

36 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.10 |

| PIMCO
Municipal Income Funds II Notes to Financial Statements |
| --- |
| November 30, 2010 (unaudited) |

7. Legal Proceedings (continued)

Since February 2004, the Investment Manager and certain of its affiliates and their employees have been named as defendants in a number of pending lawsuits concerning “market timing,” which allege the same or similar conduct underlying the regulatory settlements discussed above. The market timing lawsuits have been consolidated in a multi-district litigation proceeding in the U.S. District Court for the District of Maryland (the “MDL Court”). After a number of claims in the lawsuits were dismissed by the MDL Court, the parties entered into a stipulation of settlement, which was publicly filed with the MDL Court in April 2010, resolving all remaining claims, but the settlement remains subject to the approval of the MDL Court.

In addition, in a lawsuit filed in the Northern District of Illinois Eastern Division, plaintiffs challenged certain trades by PIMCO in the June 2005 10 year futures contract. PIMCO’s position is that all such trades were properly designed to secure best execution for its clients. The parties resolved this matter through settlement, which resolves all of the claims against PIMCO. In settling this matter, PIMCO denies any liability. This settlement is purely private in nature and not a regulatory matter.

Beginning in May 2010, several closed-end funds managed by the Investment Manager, including Municipal Income Fund II and certain other funds sub-advised by the Sub-Adviser, each received a demand letter from a law firm on behalf of certain common shareholders. The demand letters allege that the Investment Manager and certain officers and trustees of the funds breached their fiduciary duties in connection with the redemption at par of a portion of the funds’ ARPS and demand that the boards of trustees take certain action to remedy those alleged breaches. After conducting an investigation, in August 2010 the independent trustees of Municipal Income Fund II rejected the demands made in the demand letters.

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.

8. Subsequent Events On December 1, 2010, the following dividends were declared to common shareholders payable December 29, 2010 to shareholders of record on December 13, 2010:

Municipal II	$0.065 per common share
California Municipal II	$0.0625 per common share
New York Municipal II	$0.06625 per common share

On January 3, 2011, the following dividends were declared to common shareholders payable February 1, 2011 to shareholders of record on January 13, 2011:

Municipal II	$0.065 per common share
California Municipal II	$0.0625 per common share
New York Municipal II	$0.06625 per common share

| 11.30.10 | PIMCO Municipal Income Funds II Semi-Annual Report 37

| P IMCO Municipal Income Fund II Financial
Highlights |
| --- |
| For a common share outstanding
throughout each period: |

	Six Months ended November 30, 2010 (unaudited)
		Year ended May 31,
		2010		2009		2008		2007		2006
Net asset
value, beginning of period	$ 10.77	$	8.97	$	13.86	$	15.05	$	14.71	$	14.81
Investment Operations:
Net
investment income	0.45		0.88		1.02		1.13		1.13		1.08
Net
realized and change in unrealized gain (loss) on investments, futures
contracts, options written and swaps	(0.34	)	1.73		(4.94	)	(1.24	)	0.33		0.01
Total from
investment operations	0.11		2.61		(3.92	)	(0.11	)	1.46		1.09
Dividends on Preferred Shares from Net Investment Income	(0.01	)	(0.03	)	(0.19	)	(0.30	)	(0.30	)	(0.23	)
Net
increase (decrease) in net assets applicable to common shareholders resulting
from investment operations	0.10		2.58		(4.11	)	(0.41	)	1.16		0.86
Dividends to Common Shareholders from Net Investment Income	(0.39	)	(0.78	)	(0.78	)	(0.78	)	(0.82	)	(0.96	)
Net asset
value, end of period	$ 10.48	$	10.77	$	8.97	$	13.86	$	15.05	$	14.71
Market
price, end of period	$ 10.59	$	11.12	$	9.56	$	14.14	$	15.42	$	14.45
Total Investment Return (1)	(1.34	)%	25.49	%	(26.46	)%	(3.09	)%	12.64	%	2.63	%
RATIOS/SUPPLEMENTAL DATA:
Net assets,
applicable to common shareholders, end of period (000s)	$ 630,371	$	645,589	$	534,046	$	819,740	$	886,815	$	862,832
Ratio of
expenses to average net assets, including interest expense (2)(3)(4)	1.31	%*	1.38	%(5)	1.73	%(5)	1.68	%(5)	1.50	%(5)	1.30	%(5)
Ratio of
expenses to average net assets, excluding interest expense (2)(3)	1.19	%*	1.24	%(5)	1.35	%(5)	1.19	%(5)	1.01	%(5)	1.05	%(5)
Ratio of
net investment income to average net assets (2)	8.23	%*	8.77	%(5)	10.23	%(5)	7.90	%(5)	7.45	%(5)	7.31	%(5)
Preferred
shares asset coverage per share	$ 67,939	$	68,974	$	61,376	$	65,570	$	68,889	$	67,701
Portfolio
turnover	10	%	6	%	42	%	21	%	4	%	20	%

*	Annualized.
(1)	Total investment return is
calculated assuming a purchase of a common share at the market price on the
first day and a sale of a common share at the market price on the last day of
each period reported. Dividends and distributions are assumed, for purposes
of this calculation, to be reinvested at prices obtained under the Fund’s
dividend reinvestment plan. Total investment return does not reflect
brokerage commissions or sales charges. Total investment return for a period
of less than one year is not annualized.
(2)	Calculated on the basis of income
and expenses applicable to both common and preferred shares relative to the
average net assets of common shareholders.
(3)	Inclusive of expenses offset by
custody credits earned on cash balances at the custodian bank (See note 1(i)
in Notes to Financial Statements).
(4)	Interest expense primarily relates
to the liability for floating rate notes issued in connection with Inverse
Floater transactions and/or participation in reverse repurchase agreement
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 were 0.004%, 0.10%, 0.17%, 0.24% and 0.24% for the years ended
May 31, 2010, May 31, 2009, May 31, 2008, May 31, 2007 and May 31, 2006,
respectively.

38 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.10 | See accompanying Notes to Financial Statements

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

| | Six
Months ended November 30, 2010 (unaudited) | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | Year
ended May 31, | | | | | | | | | | |
| | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | | |
| Net asset
value, beginning of period | $ 8.11 | $ | 7.48 | $ | 13.34 | $ | 14.89 | $ | 14.58 | $ | 14.61 | |
| Investment Operations: | | | | | | | | | | | | |
| Net
investment income | 0.37 | | 0.76 | | 0.85 | | 1.06 | | 1.08 | | 1.06 | |
| Net
realized and change in unrealized gain (loss) on investments, futures
contracts, options written and swaps | (0.34 | ) | 0.67 | | (5.69 | ) | (1.49 | ) | 0.34 | | 0.05 | |
| Total from
investment operations | 0.03 | | 1.43 | | (4.84 | ) | (0.43 | ) | 1.42 | | 1.11 | |
| Dividends on Preferred Shares from Net Investment Income | (0.01 | ) | (0.03 | ) | (0.18 | ) | (0.28 | ) | (0.27 | ) | (0.21 | ) |
| Net
increase (decrease) in net assets applicable to common shareholders resulting
from investment operations | 0.02 | | 1.40 | | (5.02 | ) | (0.71 | ) | 1.15 | | 0.90 | |
| Dividends to Common Shareholders from Net Investment Income | (0.38 | ) | (0.77 | ) | (0.80 | ) | (0.84 | ) | (0.84 | ) | (0.93 | ) |
| Return of
capital | — | | — | | (0.04 | ) | — | | — | | — | |
| Net asset
value, end of period | $ 7.75 | $ | 8.11 | $ | 7.48 | $ | 13.34 | $ | 14.89 | $ | 14.58 | |
| Market
price, end of period | $ 8.81 | $ | 9.33 | $ | 8.78 | $ | 14.25 | $ | 15.96 | $ | 14.62 | |
| Total Investment Return (1) | (1.56 | )% | 16.44 | % | (32.26 | )% | (5.17 | )% | 15.35 | % | 5.50 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | |
| Net assets
applicable to common shareholders, end of period (000s) | $ 242,162 | $ | 252,816 | $ | 231,415 | $ | 409,769 | $ | 455,284 | $ | 443,379 | |
| Ratio of
expenses to average net assets including interest expense (2)(3)(4) | 1.35 | % | 1.56 | %(5) | 3.15 | %(5) | 3.23 | %(5) | 2.89 | %(5) | 2.02 | %(5) |
| Ratio of
expenses to average net assets,excluding interest expense (2)(3) | 1.31 | % | 1.33 | %(5) | 1.43 | %(5) | 1.18 | %(5) | 1.01 | %(5) | 1.06 | %(5) |
| Ratio of
net investment income to average net assets (2) | 8.83 | %* | 9.78 | %(5) | 9.31 | %(5) | 7.65 | %(5) | 7.28 | %(5) | 7.24 | %(5) |
| Preferred
shares asset coverage per share | $ 62,140 | $ | 63,773 | $ | 60,490 | $ | 64,390 | $ | 68,765 | $ | 67,620 | |
| Portfolio
turnover | 9 | % | 9 | % | 62 | % | 6 | % | 3 | % | 12 | % |

*	Annualized.
(1)	Total investment return is
calculated assuming a purchase of a common share at the market price on the
first day and a sale of a common share at the market price on the last day of
each period reported. Dividends and distributions are assumed, for purposes
of this calculation, to be reinvested at prices obtained under the Fund’s
dividend reinvestment plan. Total investment return does not reflect
brokerage commissions or sales charges. Total investment return for a period
of less than one year is not annualized.
(2)	Calculated on the basis of income
and expenses applicable to both common and preferred shares relative to the
average net assets of common shareholders.
(3)	Inclusive of expenses offset by
custody credits earned on cash balances at the custodian bank (See note 1(i)
in Notes to Financial Statements).
(4)	Interest expense primarily relates
to the liability for floating rate notes issued in connection with Inverse
Floater transactions and/or participation in reverse repurchase agreement
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 were 0.004%, 0.10%, 0.17%, 0.24% and 0.24% for the years ended
May 31, 2010, May 31, 2009, May 31, 2008, May 31, 2007 and May 31, 2006,
respectively.

See accompanying Notes to Financial Statements | 11.30.10 | PIMCO Municipal Income Funds II Semi-Annual Report 39

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

| | Six
Months ended November 30, 2010 (unaudited) | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | Year
ended May 31, | | | | | | | | | | |
| | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | | |
| Net asset
value, beginning of period | $ 10.90 | $ | 9.56 | $ | 13.67 | $ | 14.79 | $ | 14.66 | $ | 14.62 | |
| Investment Operations: | | | | | | | | | | | | |
| Net
investment income | 0.45 | | 0.98 | | 1.00 | | 1.07 | | 1.10 | | 1.07 | |
| Net
realized and change in unrealized gain (loss) on investments, futures
contracts, options written and swaps | (0.43 | ) | 1.19 | | (4.13 | ) | (1.11 | ) | 0.11 | | 0.11 | |
| Total from
investment operations | 0.02 | | 2.17 | | (3.13 | ) | (0.04 | ) | 1.21 | | 1.18 | |
| Dividends on Preferred Shares from Net Investment Income | (0.01 | ) | (0.03 | ) | (0.19 | ) | (0.29 | ) | (0.28 | ) | (0.23 | ) |
| Net
increase (decrease) in net assets applicable to common shareholders resulting
from investment operations | 0.01 | | 2.14 | | (3.32 | ) | (0.33 | ) | 0.93 | | 0.95 | |
| Dividends to Common Shareholders from Net Investment Income | (0.40 | ) | (0.80 | ) | (0.79 | ) | (0.79 | ) | (0.80 | ) | (0.91 | ) |
| Net asset
value, end of period | $ 10.51 | $ | 10.90 | $ | 9.56 | $ | 13.67 | $ | 14.79 | $ | 14.66 | |
| Market
price, end of period | $ 11.38 | $ | 11.42 | $ | 10.26 | $ | 14.42 | $ | 15.49 | $ | 14.14 | |
| Total Investment Return (1) | 3.21 | % | 19.92 | % | (22.95 | )% | (1.46 | )% | 15.51 | % | 1.65 | % |
| RATIOS/SUPPLEMENTAL DATA: | | | | | | | | | | | | |
| Net assets
applicable to common shareholders, end of period (000s) | $ 113,295 | $ | 117,161 | $ | 102,126 | $ | 145,100 | $ | 156,218 | $ | 154,088 | |
| Ratio of
expenses to average net assets including interest expense (2)(3)(4) | 1.48 | % | 1.53 | %(5) | 1.88 | %(5) | 2.07 | %(5) | 2.13 | %(5) | 1.89 | %(5) |
| Ratio of
expenses to average net assets, excluding interest expense (2)(3) | 1.39 | % | 1.43 | %(5) | 1.51 | %(5) | 1.25 | %(5) | 1.14 | %(5) | 1.13 | %(5) |
| Ratio of
net investment income to average net assets (2) | 8.19 | %* | 9.51 | %(5) | 9.63 | %(5) | 7.69 | %(5) | 7.33 | %(5) | 7.29 | %(5) |
| Preferred
shares asset coverage per share | $ 60,851 | $ | 62,073 | $ | 57,316 | $ | 65,294 | $ | 68,386 | $ | 67,785 | |
| Portfolio
turnover | 3 | % | 5 | % | 33 | % | 9 | % | 3 | % | 26 | % |

*	Annualized.
(1)	Total investment return is
calculated assuming a purchase of a common share at the market price on the
first day and a sale of a common share at the market price on the last day of
each period reported. Dividends and distributions are assumed, for purposes
of this calculation, to be reinvested at prices obtained under the Fund’s dividend
reinvestment plan. Total investment return does not reflect brokerage
commissions or sales charges. Total investment return for a period of less
than one year is not annualized.
(2)	Calculated on the basis of income
and expenses applicable to both common and preferred shares relative to the
average net assets of common shareholders.
(3)	Inclusive of expenses offset by
custody credits earned on cash balances at the custodian bank (See note 1(i)
in Notes to Financial Statements).
(4)	Interest expense primarily relates
to the liability for floating rate notes issued in connection with Inverse
Floater transactions and/or participation in reverse repurchase agreement
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 were 0.004%, 0.10%, 0.17%, 0.24% and 0.24% for the years ended
May 31, 2010, May 31, 2009, May 31, 2008, May 31, 2007 and May 31, 2006,
respectively.

40 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.10 | See accompanying Notes to Financial Statements

P IMCO Municipal Income Funds II Annual Shareholder Meeting Results/Changes to the Board of Trustees/Proxy Voting Policies & Procedures (unaudited)

Annual Shareholder Meeting Results:

The Funds held their joint annual meeting of shareholders on December 14, 2010. Common/Preferred shareholders voted as indicated below:

Municipal II
Re-election of Paul Belica – Class II to serve until 2013	53,889,723	1,827,839
Election of James A. Jacobson* – Class II to serve until
2013	11,618	179
Election of Alan Rappaport– Class I to serve until 2012	54,271,846	1,445,716
California Municipal II
Re-election of Paul Belica – Class II to serve until 2013	25,677,044	1,390,672
Election of James A. Jacobson* – Class II to serve until
2013	4,129	21
Election of Alan Rappaport– Class I to serve until 2012	25,785,464	1,282,252
New York Municipal II
Re-election of Paul Belica – Class II to serve until 2013	9,286,133	377,955
Election of James A. Jacobson* – Class II to serve until
2013	—	—
Election of Alan Rappaport– Class I to serve until 2012	9,369,378	294,710

The other members of the Board of Trustees at the time of the meetings, namely Messrs. Hans W. Kertess*, John C. Maney†, and William B. Ogden IV, continued to serve as Trustees of the Funds.

*	Preferred Shares Trustee
†	Interested Trustee

Changes to the Board of Trustees:

Effective June 22, 2010, the Funds’ Board of Trustees appointed Alan Rappaport as a Class I Trustee to serve until 2012.

R. Peter Sullivan, III retired from the Funds’ Board of Trustees effective July 31, 2010.

Effective December 15, 2010, the Funds’ Board of Trustees appointed Bradford K. Gallagher as a Trustee.

Proxy Voting Policies & Procedures:

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 most recent twelve month period ended June 30 is available (i) without charge, upon request, by calling the Funds’ shareholder servicing agent at (800) 254-5197; (ii) on the Funds’ website at www.allianzinvestors.com/closedendfunds; and (iii) on the Securities and Exchange Commission website at www.sec.gov

| 11.30.10 | PIMCO Municipal Income Funds II Semi-Annual Report 41

PIMCO Municipal Income Funds II M atters Relating to the Trustees’ Consideration of the Investment Management & Portfolio Management Agreements (unaudited)

The Investment Company Act of 1940, as amended, requires that both the full Board of Trustees (the “Trustees”) and a majority of the non-interested Trustees (the “Independent Trustees”), voting separately, approve the Funds’ Management Agreements with the Investment Manager (the “Advisory Agreements”) 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 in person on June 22-23, 2010 (the “contract review meeting”) for the specific purpose of considering whether to approve the continuation of 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.

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 continuation of the Funds’ Advisory Agreements and the Sub-Advisory Agreements, should be approved for a one-year period commencing July 1, 2010.

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 or the Sub-Adviser under the applicable Agreement.

In connection with their contract review meeting, the Trustees received and relied upon materials provided by the Investment Manager which included, among other items: (i) information provided by Lipper Inc. (“Lipper”) 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 as the Funds identified by Lipper and the performance of applicable benchmark indices, (ii) information provided by Lipper on the Funds’ management fees and other expenses and the management fees and other expenses of comparable funds identified by Lipper, (iii) information regarding the investment performance and management fees of comparable portfolios of other clients of the Sub-Advisers, (iv) the profitability to the Investment Manager and the Sub-Adviser from their relationship with the Funds for the one year period ended March 31, 2010, (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 of the Agreements were based on a comprehensive consideration of all information provided to the Trustees and were 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, attributing different weights to various factors.

As part of their review, the Trustees examined the Investment Manager’s and the Sub-Adviser’s abilities to provide high quality investment management and other services to the Funds. The Trustees considered the investment philosophy and research and decision-making processes of the Sub-Adviser; the experience of key advisory personnel of the Sub-Adviser responsible for portfolio management of the Funds; the ability of the Investment Manager and 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 Manager’s and the Sub-Adviser’s services with respect to regulatory compliance and compliance with the investment policies of the Funds; the nature and quality of certain administrative services the Investment Manager is responsible for providing to the Funds; and conditions that might affect the Investment Manager’s or the Sub-Adviser’s ability to provide high quality services to the Funds in the future under the Agreements, including each organization’s respective business reputation, financial condition and operational stability. Based on the foregoing, the Trustees concluded that the Sub-Adviser’s investment process, research capabilities and philosophy were well suited to each of the Funds given their respective 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, the Trustees also reviewed each Fund’s total return investment performance as well as the performance of comparable funds identified by Lipper. In the course of their deliberations, the Trustees took into account information provided by the Investment Manager in connection with the contract review meeting, as well as during investment review meetings conducted with portfolio management personnel during the course of the year regarding each Fund’s performance.

42 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.10 |

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

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

For each of the Funds, the Trustees specifically took note of how each Fund compared to its Lipper peers as to performance, management fee expenses and total expenses. The Trustees noted that the Investment Manager had provided a memorandum containing comparative information on the performance and expenses information of the Funds compared to their Lipper peer categories. 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 categories were charged such a fee by their investment managers.

Municipal II

The Trustees noted that the expense group for the Fund provided by Lipper is small, consisting of a total of nine leveraged closed-end funds, not including peer Funds advised by the Investment Manager (the “Affiliated Funds”). The Trustees also noted that average net assets attributable to common shares of the funds in the peer group ranged from $262 million to $591 million, and that all of the funds are smaller in asset size than the Fund. The Trustees also noted that the Fund was ranked seven out of nine funds in the expense peer group for actual management fees and nine out of nine for actual total expenses (with funds ranked first having the lowest fees/expenses and ranked ninth having the highest fees/expenses in the peer group).

With respect to performance, the Trustees also noted that the Fund outperformed its benchmark and had first quintile performance for the one-year period ended March 31, 2010 against a peer group of fifty nine funds. The Trustees also noted that the Fund had fifth quintile performance for the three-year period against a peer group of fifty nine funds and fifth quintile performance for the five-year period ended March 31, 2010 against a peer group of fifty eight funds.

California Municipal II

The Trustees noted that the expense group for the Fund provided by Lipper is small, consisting of a total of seven leveraged closed-end funds, not including Affiliated Funds. The Trustees also noted that average net assets attributable to common shares of the funds in the peer group ranged from $107.7 million to $282.6 million, and that all of the funds are smaller in asset size than the Fund. The Trustees also noted that the Fund was ranked six out of seven funds in the expense peer group for actual management fees and seven out of seven funds in the expense peer group for actual total expenses (with funds ranked first having the lowest fees/expenses and ranked seventh having the highest fees/expenses in the peer group).

With respect to performance, the Trustees also noted that the Fund outperformed its benchmark and had first quintile performance for the one-year period ended March 31, 2010 against a peer group of twenty one funds. The Trustees also noted that the Fund had fifth quintile performance for the three-year period and five-year period ended March 31, 2010 against a peer group of twenty one funds.

New York Municipal II

The Trustees noted that the expense group for the Fund provided by Lipper is small, consisting of a total of seven leveraged closed-end funds, not including Affiliated Funds. The Trustees also noted that average net assets attributable to common shares of the funds in the peer group ranged from $45.8 million to $190.5 million, and that one of the funds is larger in asset size than the Fund. The Trustees also noted that the Fund was ranked six out of seven funds in the expense peer group for actual management fees and for actual total expenses (with funds ranked first having the lowest fees/expenses and ranked seventh having the highest fees/expenses in the peer group).

With respect to performance, the Trustees also noted that the Fund outperformed its benchmark and had first quintile performance for the one-year period ended March 31, 2010 against a peer group of seventeen funds. The Trustees also noted that the Fund had fifth quintile performance for the three-year period and five-year period ended March 31, 2010 against a peer group of seventeen funds.

At the request of the Trustees, the Investment Manager and Sub-Adviser agreed to continue to provide performance information related to the Fund, on a monthly basis.

After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the Agreements, that they were satisfied with the Investment Manager’s and the Sub-Adviser’s responses and efforts to continue to improve the Funds’ investment performance. The Trustees agreed to reassess the services provided by the Investment Manager and Sub-Adviser under the Agreements in light of the Fund’s ongoing performance at each quarterly Board meeting.

| 11.30.10 | PIMCO Municipal Income Funds II Semi-Annual Report 43

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

The Trustees also considered the management fees charged by Sub-Adviser to other clients, including accounts with investment strategies similar to those of the Funds. The Trustees noted that the management fees paid by the Funds are generally higher than the fees paid by the open-end funds offered for comparison but were advised that there are additional portfolio management challenges in managing the Funds, such as the use of leverage and meeting a regular dividend.

The Trustees 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 Fund’s net assets, including assets attributable to preferred shares 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 Fund’s use of leverage through preferred shares continues to be appropriate and in the interests of the respective Fund’s common shareholders.

Based on a profitability analysis provided by the Investment Manager, the Trustees also considered the profitability of the Investment Manager and the Sub-Adviser from their relationship with each Fund and determined that such profitability was not excessive.

The Trustees also took into account that, as closed-end investment companies, the Fund’s 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 with respect to each Fund, 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.

44 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.10 |

Trustees	Fund Officers
Hans W.
Kertess	Brian S.
Shlissel
Chairman of the Board of Trustees	President & Chief Executive Officer
Paul
Belica	Lawrence
G. Altadonna
Bradford
K. Gallagher	Treasurer, Principal Financial & Accounting Officer
James A.
Jacobson	Thomas J.
Fuccillo
John C.
Maney	Vice President, Secretary & Chief Legal Officer
William B.
Ogden, IV	Scott
Whisten
Alan
Rappaport	Assistant Treasurer
	Richard J.
Cochran
	Assistant Treasurer
	Orhan
Dzemaili
	Assistant Treasurer
	Youse E.
Guia
	Chief Compliance Officer
	Kathleen
A. Chapman
	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
BNY Mellon 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 Prudential Tower 800 Boylston Street Boston, MA 02199

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 herein.

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

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

Information on the Funds is available at www.allianzinvestors.com/closedendfunds or by calling the Funds’ shareholder servicing agent at (800) 254-5197.

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

AZ611SA_113010

ITEM 2. CODE OF ETHICS

(a) 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

| (a) Schedule of Investments is
included as part of the report to shareholders filed under Item 1 of this
form. |
| --- |
| (b) Not applicable due to no
such divestments during the semi-annual period covered since the previous
Form N-CSR filing. |

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.

Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Companies

None

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There have been no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board of Trustees since the Fund last provided disclosure in response to this item.

A-1

ITEM 11. CONTROLS AND PROCEDURES

(a) The registrant’s President and Chief Executive Officer and Treasurer, Principal Financials Accounting Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR 270.30a-3(c))), as amended are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

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

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

(a) (2) Not applicable

(b) Exhibit 99.906 Cert. - Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

A-2

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.

(Registrant) PIMCO New York Municipal Income Fund II

| By /s/ Brian S. Shlissel |
| --- |
| President & Chief
Executive Officer |
| Date February 1, 2011 |
| By /s/ Lawrence G.
Altadonna |
| Treasurer, Principal
Financial & Accounting Officer |
| Date February 1, 2011 |
| Pursuant to the
requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, this report has been signed below by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated. |
| By /s/ Brian S. Shlissel |
| President & Chief
Executive Officer |
| Date February 1, 2011 |
| By /s/ Lawrence G.
Altadonna |
| Treasurer, Principal
Financial & Accounting Officer |
| Date February 1, 2011 |