nvq

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
     
Investment Company Act File Number:
  811-10379
 
    
Registrant Name:
  PIMCO California Municipal Income Fund
 
    
Address of Principal Executive Offices:
  1345 Avenue of the Americas,
 
  New York, NY 10105
 
    
Name and Address of Agent for Service:
  Lawrence G. Altadonna
 
  1345 Avenue of the Americas,
 
  New York, NY 10105
 
    
Registrant’s telephone number, including area code:
  212-739-3371
 
    
Date of Fiscal Year End:
  April 30, 2010
 
    
Date of Reporting Period:
  January 31, 2010
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to the collection of information contained in Form N-Q 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 the 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. Schedule of Investments
PIMCO California Municipal Income Fund Schedule of Investments
January 31, 2010 (unaudited)
                     
Principal                
Amount         Credit Rating      
(000s)         (Moody’s/S&P)   Value*  
 
CALIFORNIA MUNICIPAL BONDS & NOTES—91.9%            
$ 1,000    
Assoc. of Bay Area Gov’t Finance Auth. For Nonprofit Corps., Channing House, CP, 5.375%, 2/15/19
   NR/BBB-   $ 962,940  
  1,000    
Assoc. of Bay Area Gov’t Finance Auth. for Nonprofit Corps. Rev., Poway Housing, Inc. Project, 5.375%, 11/15/25, Ser. A (CA Mtg. Ins.)
   NR/A-     1,000,480  
  10,000    
Bay Area Toll Auth. Rev., San Francisco Bay Area, 5.00%, 4/1/34, Ser. F1
   Aa3/AA     10,187,200  
  5,000    
Chula Vista Rev., San Diego Gas & Electric, 5.875%, 2/15/34, Ser. B
   Aa3/A+     5,474,750  
  650    
City & Cnty. of San Francisco, Capital Improvement Projects, CP, 5.25%, 4/1/31, Ser. A
   A1/AA-     655,596  
  720    
City & Cnty. of San Francisco Redev. Agcy. Rev., Special Tax, 6.125%, 8/1/31, Ser. B
   NR/NR     661,709  
       
Contra Costa Cnty. Public Financing Auth., Tax Allocation,
            
  350    
5.85%, 8/1/33, Ser. A
   NR/NR     342,570  
  2,150    
Pleasant Hill, 5.125%, 8/1/19
   NR/BBB     2,111,214  
  3,635    
Cucamonga Cnty. Water Dist., CP, 5.125%, 9/1/35 (FGIC-NPFGC)
   A2/AA-     3,636,163  
  5,000    
Desert Community College Dist., GO, 5.00%, 8/1/37, Ser. C (AGM)
   Aa3/AAA     5,037,250  
  310    
Dublin Unified School Dist., GO, zero coupon, 8/1/23, Ser. E
   A1/AA-     138,204  
  6,300    
Eastern Municipal Water Dist., CP, 5.00%, 7/1/35, Ser. H
   Aa3/AA     6,425,433  
       
Educational Facs. Auth. Rev.,
           
       
Claremont McKenna College,
            
  1,400    
5.00%, 1/1/39
   Aa2/NR     1,424,108  
  10,200    
5.00%, 1/1/39 (h)
   Aa2/NR     10,375,644  
       
Univ. of Southern California, Ser. A,
            
  5,000    
5.00%, 10/1/38
   Aa1/AA+     5,152,800  
  10,000    
5.00%, 10/1/39 (h)
   Aa1/AA+     10,347,500  
  2,975    
El Dorado Irrigation Dist. & El Dorado Water Agcy., CP, 5.75%, 8/1/39, Ser. A (AGC)
   Aa3/AAA     3,092,899  
  10,790    
El Monte, Department of Public Social Services Fac., CP (AMBAC), 4.75%, 6/1/30
   A3/A+     10,434,146  
  14,425    
Phase II, 5.25%, 1/1/34
   A3/NR     14,466,256  
  1,000    
Folsom Redev. Agcy., Tax Allocation, 5.50%, 8/1/36
   NR/A     920,430  
       
Fremont Community Dist. No. 1, Special Tax,
            
  165    
6.00%, 9/1/18
   NR/NR     157,646  
  505    
6.00%, 9/1/19
   NR/NR     476,276  
  3,500    
6.30%, 9/1/31
   NR/NR     3,249,890  
       
Golden State Tobacco Securitization Corp. Rev.,
            
  9,000    
5.00%, 6/1/33, Ser. A-1
   Baa3/BBB     7,038,720  
  3,000    
5.00%, 6/1/35, Ser. A (FGIC)
   Baa2/BBB+     2,662,650  
  6,000    
5.00%, 6/1/38, Ser. A (FGIC)
   Baa2/BBB+     5,114,520  
  1,600    
5.00%, 6/1/45 (AMBAC-TCRS)
   Baa2/A-     1,312,048  
  500    
Hartnell Community College Dist., GO, zero coupon, 8/1/34, Ser. D
   A1/AA-     222,950  
       
Health Facs. Financing Auth. Rev.,
           
       
Adventist Health System, Ser. A,
            
  4,630    
5.00%, 3/1/33
   NR/A     4,252,099  
  2,000    
5.75%, 9/1/39
   NR/A     2,008,660  
       
Catholic Healthcare West, Ser. A,
            
  1,875    
5.00%, 7/1/18
   A2/A     1,880,081  
  570    
5.00%, 7/1/28
   A2/A     552,188  
  2,000    
6.00%, 7/1/34
   A2/A     2,105,660  
  4,000    
6.00%, 7/1/39
   A2/A     4,232,520  
  1,000    
Children’s Hospital of Orange Cnty., 6.50%, 11/1/38, Ser. A
   NR/A     1,059,070  
  5,315    
Northern California Presbyterian, 5.125%, 7/1/18
   NR/BBB+     5,216,991  
  1,450    
Scripps Health, 5.00%, 11/15/36, Ser. A (d)
   A1/AA-     1,411,691  

 

 

PIMCO California Municipal Income Fund Schedule of Investments
January 31, 2010 (unaudited)
                     
Principal                
Amount         Credit Rating      
(000s)         (Moody’s/S&P)   Value*  
 
$ 10,590    
Kern Cnty., Capital Improvements Projects, CP, 5.75%, 8/1/35, Ser. A (AGC)
   Aa3/AAA   $ 10,996,444  
       
La Quinta Redev. Agcy., Tax Allocation (AMBAC),
            
  3,000    
5.00%, 9/1/21
   WR/A+     2,968,710  
  10,000    
5.10%, 9/1/31
   WR/A+     9,199,700  
  1,000    
5.125%, 9/1/32
   WR/A+     902,770  
  500    
Lancaster Redev. Agcy., Tax Allocation, 6.875%, 8/1/39
   NR/A     531,690  
  1,495    
Lincoln Public Financing Auth. Rev., Twelve Bridges, 6.125%, 9/2/27
   NR/NR     1,365,174  
       
Long Beach Bond Finance Auth. Rev., Long Beach Natural Gas, Ser. A,
            
  1,000    
5.50%, 11/15/27
   A2/A     987,630  
  3,900    
5.50%, 11/15/37
   A2/A     3,677,622  
       
Los Angeles Department of Water & Power Rev.,
            
  5,000    
4.75%, 7/1/30, Ser. A-2 (AGM) (h)
   Aa3/AAA     5,068,850  
  3,930    
5.125%, 7/1/41, Ser. A
   Aa3/AA     3,932,201  
  3,000    
5.375%, 7/1/34, Ser. A (h)
   Aa3/AA     3,186,300  
  7,000    
5.375%, 7/1/38, Ser. A (h)
   Aa3/AA     7,392,630  
       
Los Angeles Unified School Dist., GO,
            
  10,000    
5.00%, 7/1/29, Ser. I (h)
   Aa3/AA-     10,263,900  
  13,000    
5.00%, 1/1/34, Ser. I
   Aa3/AA-     12,981,410  
  5,000    
5.00%, 1/1/34, Ser. I (h)
   Aa3/AA-     4,992,850  
  250    
5.30%, 1/1/34, Ser. D
   Aa3/AA-     255,375  
  700    
Malibu, City Hall Project, CP, 5.00%, 7/1/39, Ser. A
   NR/AA+     702,051  
  200    
M-S-R Energy Auth. Rev., 6.50%, 11/1/39, Ser. B
   NR/A     210,894  
  2,900    
Municipal Finance Auth. Rev., Biola Univ., 5.875%, 10/1/34
   Baa1/NR     2,940,803  
  5,000    
Orange Cnty. Sanitation Dist., CP, 5.00%, 2/1/39, Ser. A
   NR/AAA     5,086,950  
  1,080    
Palm Springs Community Redev. Agcy., Tax Allocation, 5.50%, 8/1/21
   NR/A     1,102,658  
  2,145    
Patterson Public Financing Auth. Rev., Waste Water Systems Project, 5.50%, 6/1/39 (AGC)
   NR/AAA     2,174,494  
  1,250    
Peralta Community College Dist., GO, 5.00%, 8/1/39, Ser. C
   NR/AA-     1,219,862  
       
Riverside, Special Assessment, Riverwalk Assessment Dist.,
            
  500    
6.15%, 9/2/19
   NR/NR     496,760  
  1,350    
6.375%, 9/2/26
   NR/NR     1,352,282  
  8,305    
Riverside Cnty., CP, 5.125%, 11/1/30 (NPFGC)
   A2/AA-     8,215,472  
  545    
San Diego Cnty., CP, 5.25%, 10/1/28
   A2/NR     549,442  
       
San Diego Cnty. Water Auth., CP, Ser. A,
            
  1,000    
5.00%, 5/1/32 (NPFGC)
   Aa3/AA+     1,013,360  
  6,250    
5.00%, 5/1/38 (AGM)
   Aa3/AAA     6,355,125  
  2,000    
San Diego Public Facs. Financing Auth. Rev., 5.25%, 5/15/39, Ser. A
   A2/A+     2,065,120  
  3,285    
San Diego Regional Building Auth. Rev., Cnty. Operations Center & Annex, 5.375%, 2/1/36, Ser. A
   A1/AA+     3,373,366  
  5,000    
San Diego Unified School Dist., GO, 4.75%, 7/1/27, Ser. D-2 (AGC)
   Aa2/AAA     5,125,350  
  880    
San Francisco Bay Area Rapid Transit Dist. Rev., 5.125%, 7/1/36 (AMBAC)
   Aa3/AA+     885,007  
  5,065    
San Joaquin Cnty., General Hospital Project, CP, 5.00%, 9/1/20 (NPFGC)
   A2/A     5,100,658  
       
San Joaquin Hills Transportation Corridor Agcy. Rev., Ser. A,
            
  5,000    
5.50%, 1/15/28
   Ba2/BB-     4,350,400  
  5,000    
5.70%, 1/15/19
   Ba2/BB-     4,850,050  
  230    
San Jose, Special Assessment, 5.60%, 9/2/17, Ser. Q
   NR/NR     225,269  

 

 

PIMCO California Municipal Income Fund Schedule of Investments
January 31, 2010 (unaudited)
                     
Principal                
Amount         Credit Rating      
(000s)         (Moody’s/S&P)   Value*  
 
$ 600    
Santa Ana Financing Auth. Rev., 5.60%, 9/1/19, Ser. C
   NR/BBB   $ 605,166  
  1,815    
Santa Clara, Central Park Library Project, CP, 5.00%, 2/1/32 (AMBAC)
   Aa3/AA     1,827,524  
  3,500    
Santa Clara Cnty. Financing Auth. Rev., 5.75%, 2/1/41, Ser. A (AMBAC)
   A1/A+     3,642,415  
  1,300    
Santa Cruz Cnty. Redev. Agcy., Tax Allocation, Live Oak/Soquel Community, 7.00%, 9/1/36, Ser. A
   A2/A     1,405,781  
       
State Public Works Board Rev.,
            
  2,000    
5.75%, 10/1/30, Ser. G-1
   Baa2/BBB+     1,947,980  
  2,000    
California State Univ., 6.00%, 11/1/34, Ser. J
   A1/BBB+     2,030,740  
  2,000    
Regents Univ., 5.00%, 4/1/34, Ser. E
   Aa2/AA-     1,995,700  
       
State, GO,
            
  5,885    
5.00%, 9/1/35
   Baa1/A-     5,260,190  
  3,000    
5.00%, 12/1/37
   Baa1/A-     2,652,960  
  8,000    
6.00%, 4/1/38
   Baa1/A-     8,111,760  
  900    
Statewide Communities Dev. Auth. Rev.,
           
       
Baptist Univ., 5.50%, 11/1/38, Ser. A
   NR/NR     702,684  
  1,000    
Catholic Healthcare West, 5.50%, 7/1/31, Ser. D
   A2/A     1,009,630  
  5,215    
Gross-Gillispie School, 6.625%, 10/1/31
   NR/NR     4,760,461  
  15,250    
Henry Mayo Newhall Memorial Hospital, 5.125%, 10/1/30, Ser. A (CA Mtg. Ins.)
   NR/A-     14,529,895  
  8,000    
The Internext Group, CP, 5.375%, 4/1/30
   NR/BBB     7,254,160  
  1,000    
Kaiser Permanente, 5.25%, 3/1/45, Ser. B
   NR/A+     936,300  
  3,000    
Los Angeles Jewish Home, 5.50%, 11/15/33 (CA St. Mtg.)
   NR/A-     2,789,340  
       
Methodist Hospital Project (FHA),
            
  2,100    
6.625%, 8/1/29
   Aa2/AA     2,374,113  
  7,700    
6.75%, 2/1/38
   Aa2/AA     8,652,952  
       
St. Joseph,
            
  100    
5.125%, 7/1/24 (NPFGC)
   A1/AA-     100,640  
  3,200    
5.75%, 7/1/47, Ser. A (FGIC)
   A1/AA-     3,272,576  
  2,325    
St. Marks School, 6.75%, 6/1/28 (a)(b)(i) (acquisition cost—$2,325,000; purchased 7/3/01)
   NR/NR     2,343,065  
  4,000    
Sutter Health, 5.50%, 8/15/34, Ser. B
   Aa3/A+     4,014,880  
  910    
Windrush School, 5.50%, 7/1/37
   NR/NR     700,627  
  2,000    
Turlock, Emanuel Medical Center, CP, 5.50%, 10/15/37, Ser. B
   NR/BBB     1,753,660  
       
Tustin Unified School Dist., Special Tax, Ser. B,
            
  2,345    
5.50%, 9/1/22
   NR/NR     2,301,125  
  2,520    
5.60%, 9/1/29
   NR/NR     2,339,014  
  2,000    
5.625%, 9/1/32
   NR/NR     1,800,700  
       
Univ. of California Rev.,
            
  8,000    
4.75%, 5/15/35, Ser. F (AGM) (h)
   Aa1/AAA     7,987,760  
  10,000    
5.00%, 5/15/36, Ser. A (AMBAC)
   Aa1/AA     10,180,900  
  1,000    
Western Municipal Water Dist. Facs. Auth. Rev., 5.00%, 10/1/39, Ser. B
   NR/AA+     1,010,630  
  1,000    
Westlake Village, CP, 5.00%, 6/1/39
   NR/AA+     1,010,190  
  1,000    
Whittier Union High School Dist., GO, zero coupon, 8/1/25
   NR/AA-     397,120  
       
 
          
       
Total California Municipal Bonds & Notes (cost—$374,569,885)
         383,602,219  
       
 
          

 

 

PIMCO California Municipal Income Fund Schedule of Investments
January 31, 2010 (unaudited)
                     
Principal                
Amount         Credit Rating      
(000s)         (Moody’s/S&P)   Value*  
 
OTHER MUNICIPAL BONDS & NOTES—3.8%            
       
Illinois—0.7%
            
$ 2,760    
Finance Auth. Rev., Univ. of Chicago, 5.00%, 7/1/33, Ser. A
   Aa1/AA   $ 2,824,115  
       
 
          
       
 
            
       
Iowa—1.8%
            
  8,700    
Tobacco Settlement Auth. Rev., 5.60%, 6/1/34, Ser. B
   Baa3/BBB     7,548,816  
       
 
          
       
 
            
       
Louisiana—0.4%
            
  1,750    
Tobacco Settlement Financing Corp. Rev., 5.875%, 5/15/39, Ser. 2001-B
   Baa3/BBB     1,637,685  
       
 
          
       
 
            
       
New York—0.1%
            
  450    
New York City Municipal Water Finance Auth. Water & Sewer Rev., 5.00%, 6/15/37, Ser. D (h)
   Aa2/AAA     460,814  
       
 
          
       
 
            
       
Puerto Rico—0.7%
            
  3,000    
Sales Tax Financing Corp. Rev., 5.50%, 8/1/42, Ser. A (d)
   A2/A+     2,982,000  
       
 
          
       
 
            
       
South Carolina—0.1%
            
  340    
Tobacco Settlement Rev. Management Auth. Rev., 6.375%, 5/15/30, Ser. B
   Baa3/BBB     425,874  
       
 
          
       
Total Other Municipal Bonds & Notes (cost—$16,764,182)
         15,879,304  
       
 
          
       
 
            
OTHER VARIABLE RATE NOTES (a)(c)(e)—1.6%            
       
Illinois—1.6%
            
  6,670    
Chicago Water Rev., 11.418%, 5/1/14, Ser. 1419 (AMBAC)
(cost—$6,937,200)
   NR/AA-     6,885,174  
       
 
          
       
 
            
CALIFORNIA VARIABLE RATE NOTES (a)(e)—0.4%            
  1,670    
Sacramento Regional Cnty. Sanitation Dist. Rev., 11.448%, 8/1/13, Ser. 1034 (NPFGC) (cost—$1,834,051)
   NR/AA     1,824,842  
       
 
          
       
 
            
SHORT-TERM INVESTMENTS—2.3%            
Corporate Notes (g)—2.0%            
       
Financial Services—2.0%
            
  7,800    
American General Finance Corp., 4.625%, 9/1/10
   B2/BB+     7,620,460  
  500    
International Lease Finance Corp., 0.482%, 5/24/10, FRN
   B1/BB+     490,166  
       
 
          
       
Total Corporate Notes (cost—$7,012,376)
         8,110,626  
       
 
          
       
 
            
California Variable Rate Demand Notes (e)(f)—0.3%            
  500    
Los Angeles Cnty. Metropolitan Transportation Auth. Rev., 0.18%, 2/1/10, Ser. A2
   NR/A-1+     500,000  
  600    
Pacific Gas & Electric, 0.16%, 2/1/10, Ser. F
   NR/A-1+     600,000  
  200    
Pollution Control Financing Auth. Rev., 0.16%, 2/1/10, Ser. E
   NR/A-1+     200,000  
       
 
          
       
Total California Variable Rate Demand Notes (cost—$1,300,000)
         1,300,000  
       
 
          
       
Total Short-Term Investments (cost—$8,312,376)
         9,410,626  
       
 
          
       
 
            
       
Total Investments (cost—$408,417,694)—100.0%
       $ 417,602,165  
       
 
          

 

 

Notes to Schedule of Investments:
 
*   Portfolio securities and other financial instruments for which market quotations are readily available are stated at market value. Market value is generally determined on the basis of last reported sales prices, or if no sales are reported, based on quotes obtained from a quotation reporting system, established market makers, or independent pricing services.
 
    Portfolio securities and other financial instruments for which market quotations are not readily available or for which a development/event occurs that may significantly impact the value of a security, are fair valued, in good faith, pursuant to procedures established by the Board of Trustees, or persons acting at their discretion pursuant to procedures established by the Board of Trustees. The Fund’s investments are valued daily using prices supplied by an independent pricing service or dealer quotations, or by using the last sale price on the exchange that is the primary market for such securities, or the mean between the last quoted bid and ask price for those securities which the over-the-counter market is the primary market or for listed securities in which there were no sales. Independent pricing services use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Securities purchased on a when-issued or delayed delivery basis are marked to market daily until settlement at the forward settlement value. Short-term securities maturing in 60 days or less are valued at amortized cost, if their original term to maturity was 60 days or less, or by amortizing their value on the 61st day prior to maturity, if the original term to maturity exceeded 60 days.
 
    The prices used by the Fund to value securities may differ from the value that would be realized if the securities were sold and these differences could be material. The Fund’s net asset value is determined daily as of the close of regular trading (normally, 4:00 p.m. Eastern time) on the New York Stock Exchange (“NYSE”) on each day the NYSE is open for business.
 
(a)   Private Placement—Restricted as to resale and may not have a readily available market. Securities with an aggregate value of $11,053,081, representing 2.6% of total investments.
 
(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)   Delayed-delivery. To be settled/delivered after January 31, 2010.
 
(e)   Variable Rate Notes—Instruments whose interest rates change on a 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 January 31, 2010.
 
(f)   Maturity date shown is date of next put.
 
(g)   All or partial amount segregated 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 the Fund acquired the residual interest certificates. These securities serve as collateral in a financing transaction.
 
(i)   Restricted. The aggregate acquisition cost of this security is $2,325,000. The aggregate market value of $2,343,065 is approximately 0.6% of total investments.
Glossary:
AGC—insured by Assured Guaranty Corp.
AGM—insured by Assured Guaranty Municipal Corp.
AMBAC—insured by American Municipal Bond Assurance Corp.
CA Mtg. Ins.—insured by California Mortgage Insurance
CA St. Mtg.—insured by California State Mortgage
CP—Certificates of Participation
FGIC—insured by Financial Guaranty Insurance Co.
FHA—insured by Federal Housing Administration
FRN—Floating Rate Note. The interest rate disclosed reflects the rate in effect on January 31, 2010.
GO—General Obligation Bond
NPFGC—insured by National Public Finance Guarantee Corp.
NR—Not Rated
TCRS—Temporary Custodian Receipts
WR—Withdrawn Rating

 

 

Other Investments:
Open reverse repurchase agreements at January 31, 2010:
                                         
Counterparty   Rate     Trade Date     Maturity Date     Principal & Interest     Principal  
 
Barclays Bank
     0.75 %     1/6/10       2/9/10     $ 7,250,774     $ 7,247,000  
 
                                      
The weighted average daily balance of reverse repurchase agreements outstanding during the nine months ended January 31, 2010 was $8,742,562 at a weighted average interest rate of 0.77%. The total market value of underlying collateral (refer to the Schedule of Investments for positions segregated as collateral for reverse repurchase agreements) for open reverse repurchase agreements at January 31, 2010 was $8,110,626.
The Fund received $208,517 in principal value of U.S. government agency securities as collateral for reverse repurchase agreements outstanding. Collateral received as securities cannot be pledged.

 

 

Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e. the “exit price”) in an orderly transaction between market participants. The three levels of the fair value hierarchy are described below:
  •   Level 1 — quoted prices in active markets for identical investments that the Fund has the ability to access
 
  •   Level 2 — valuations based on other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) or quotes from inactive exchanges
 
  •   Level 3 — valuations based on significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
An investment asset’s or liability’s level within the fair value hierarchy is based on the lowest level input, individually or in the aggregate, that is significant to fair value measurement. The objective of fair value measurement remains the same even when there is a significant decrease in the volume and level of activity for an asset or liability and regardless of the valuation technique used.
The valuation techniques used by the Fund to measure fair value during the nine months ended January 31, 2010 maximized the use of observable inputs and minimized the use of unobservable inputs.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
A summary of the inputs used at January 31, 2010 in valuing the Fund’s assets and liabilities is listed below:
                                 
            Level 2 -   Level 3 -    
            Other Significant   Significant    
    Level 1 -   Observable   Unobservable   Value at
    Quoted Prices   Inputs   Inputs   1/31/10
 
Investments in Securities — Assets
                                
California Municipal Bonds & Notes
     —     $ 383,602,219       —     $ 383,602,219  
Other Municipal Bonds & Notes
     —       15,879,304       —       15,879,304  
Other Variable Rate Notes
     —       6,885,174       —       6,885,174  
California Variable Rate Notes
     —       1,824,842       —       1,824,842  
Short-Term Investments
     —       9,410,626       —       9,410,626  
 
Total Investments
     —     $ 417,602,165       —     $ 417,602,165  
 
In January 2010, the Financial Accounting Standards Board released ASU 2010-06, “Improving Disclosures About Fair Value Measurements” ASU 2010-06 is effective for annual and interim reporting periods beginning after December 15, 2009. At this time the Fund management is in the process of reviewing ASU 2010-06 to determine future applicability.

 

 

Item 2. Controls and Procedures
(a) The registrant’s President & Chief Executive Officer and Treasurer, Principal Financial & Accounting Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a -3(c))), are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.
(b) There were no significant changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a -3(d))) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3. Exhibits
(a) Exhibit 99.302 Cert. — Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: PIMCO California Municipal Income Fund
By /s/ Brian S. Shlissel
President & Chief Executive Officer
Date: March 22, 2010
By /s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer
Date: March 22, 2010
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: March 22, 2010
By /s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer
Date: March 22, 2010