Edgar Filing: PIMCO MUNICIPAL INCOME FUND

Robert E. Connor
Chairman

Brian S. Shlissel
President & Chief Executive Officer



                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM N-CSR

              CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
                              INVESTMENT COMPANIES

Investment Company Act file number 811-10377
                                   ---------

                           PIMCO Municipal Income Fund
                           ---------------------------
               (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: April 30, 2006
                         --------------

Date of reporting period: April 30, 2006
                          --------------

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

A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.

Item 1. Report to Shareholder

PIMCO Municipal Income Fund

PIMCO California Municipal Income Fund

PIMCO New York Municipal Income Fund

Annual Report

April 30, 2006

Contents

Letter to Shareholders

Performance & Statistics

2-4

Schedules of Investments

5-19

Statements of Assets and Liabilities

Statements of Operations

Statements of Changes in Net Assets

22-23

Notes to Financial Statements

24-30

Financial Highlights

31-33

Report of Independent Registered Public
Accounting Firm

Tax Information/Annual Shareholder
Meetings Results

Dividend Reinvestment Plan

Board of Trustees

38-39

PIMCO Municipal Income Funds Letter to Shareholders

June 12, 2006

Dear Shareholder:

We are pleased to provide you with the annual report for PIMCO Municipal Income Fund, PIMCO California Municipal Income Fund and PIMCO New York Municipal Income Fund (the ‘‘Funds’’) for the fiscal year ended April 30, 2006.

During the fiscal twelve month period, the Federal Reserve raised short-term interest rates eight times for a total of 200 basis points. These actions, coupled with only modest increases in longer term rates, caused the yield curve to flatten across all fixed income sectors, including national and state-specific municipal bonds.

In this environment, the Funds were able to post positive returns. For the twelve months ended April 30, 2006, PIMCO Municipal Income Fund increased 4.63% on net asset value and 18.13% on market price, outperforming the Lipper Analytical General Municipal Debt Funds (Leveraged) average, which posted returns of 3.86% and 9.25%, respectively. PIMCO California Municipal Income Fund rose 5.62% on net asset value and 18.93% on market price, outperforming the Lipper Analytical California Municipal Debt Funds average which returned 3.85% and 10.14%, respectively. PIMCO New York Municipal Income Fund increased 3.86% on net asset value and 11.45% on market price, compared to returns of 3.88% and 8.09%, respectively for the Lipper Analytical New York Municipal Debt Funds average.

Please review the following pages for specific information on the Funds. If you have any questions regarding the information provided, we encourage you to contact your financial advisor or call the Funds' shareholder servicing agent at (800) 331-1710. You can also find a wide range of information and resources on our Web site at www.allianzinvestors.com/closedendfunds.

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

We remain dedicated to serving your investment needs.

Sincerely,

4.30.06 | PIMCO Municipal Income Funds Annual Report 1

PIMCO Municipal Income Fund

Performance & Statistics

April 30, 2006

Symbol:

PMF

Objective:

To provide income exempt from federal income tax.

Primary Investments:

Municipal fixed-income securities, the interest from which is exempt from federal income tax.

Inception Date:

June 29, 2001

Total Net Assets⁽¹⁾:

$555.9 million

Portfolio Manager:

Mark McCray


Total Return⁽²⁾:	Market Price	Net Asset Value (‘‘NAV’’)
1 Year	18.13%	4.63%
3 Years	11.76%	8.28%
Commencement of Operations (6/29/01) to 4/30/06	8.63%	7.24%

Common Share Market Price/NAV Performance:

Commencement of Operations (6/29/01) to 4/30/06


Market Price/NAV:
Market Price				$16.22
NAV				$14.54
Premium to NAV				11.55%
Market Price Yield⁽³⁾				6.01%

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


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


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


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


(3)		Market Price Yield is determined by dividing the annualized current monthly per share dividend to common shareholders by the market price per common share at April 30, 2006.

2 PIMCO Municipal Income Funds Annual Report | 4.30.06

PIMCO California Municipal Income Fund

Performance & Statistics

April 30, 2006

Symbol:

PCQ

Objective:

To provide current income exempt from federal and California State income tax.

Primary Investments:

Municipal fixed-income securities, the interest from which is exempt from federal and California State income
tax.

Inception Date:

June 29, 2001

Total Net Assets⁽¹⁾:

$409.1 million

Portfolio Manager:

Mark McCray


Total Return⁽²⁾:	Market Price	Net Asset Value (‘‘NAV’’)
1 Year	18.93%	5.62%
3 Years	10.90%	7.47%
Commencement of Operations (6/29/01) to 4/30/06	7.82%	6.77%

Common Share Market Price/NAV Performance:

Commencement of Operations (6/29/01) to 4/30/06


Market Price/NAV:
Market Price				$15.87
NAV				$14.48
Premium to NAV				9.60%
Market Price Yield⁽³⁾				5.82%

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


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


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


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


(3)		Market Price Yield is determined by dividing the annualized current monthly per share dividend to common shareholders by the market price per common share at April 30, 2006.

4.30.06 | PIMCO Municipal Income Funds Annual Report 3

PIMCO New York Municipal Income Fund

Performance & Statistics

April 30, 2006

Symbol:

PNF

Objective:

To provide current income exempt from federal, New York State and New York City income tax.

Primary Investments:

Municipal fixed-income securities, the interest from which is exempt from federal, New York State and New York City income tax.

Inception Date:

June 29, 2001

Total Net Assets⁽¹⁾:

$163.4 million

Portfolio Manager:

Mark McCray


Total Return⁽²⁾:	Market Price	Net Asset Value (‘‘NAV’’)
1 Year	11.45%	3.86%
3 Years	9.34%	6.75%
Commencement of Operations (6/29/01) to 4/30/06	6.01%	5.33%

Common Share Market Price/NAV Performance:

Commencement of Operations (6/29/01) to 4/30/06


Market Price/NAV:
Market Price				$14.56
NAV				$13.47
Premium to NAV				8.09%
Market Price Yield⁽³⁾				5.77%

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


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


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


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


(3)		Market Price Yield is determined by dividing the annualized current monthly per share dividend to common shareholders by the market price per common share at April 30, 2006.

4 PIMCO Municipal Income Funds Annual Report | 4.30.06

PIMCO Municipal Income Fund

Schedule of Investments

April 30, 2006


Principal Amount (000)		Credit Rating (Moody's/S&P)*	Value
MUNICIPAL BONDS & NOTES–92.7%
	Alabama–3.6%
$ 2,500	Birmingham Baptist Medical Centers Special Care Facs. Financing Auth. Rev., 5.875%, 11/15/24, Ser. A	Baa1/NR	$ 2,602,225
9,900	Daphne Special Care Facs. Financing Auth. Rev., zero coupon, 8/15/28, (Pre-refunded @ $100, 8/15/08) (a)	Aaa/AAA	8,905,644
8,000	Huntsville Health Care Auth. Rev., 5.75%, 6/1/31, Ser. A	A2/NR	8,357,600
			19,865,469
	Alaska–1.1%
6,000	Northern Tobacco Securitization Corp. Rev., 5.50%, 6/1/29	Baa3/BBB	6,081,840
	Arizona–1.0%
2,000	Apache Cnty. Industrial Dev. Auth. Rev., Pollution Control Rev., Tucson Electric Power Co., 5.875%, 3/1/33, Ser. B	Ba1/B+	2,007,680
3,500	Salt River Project Agricultural Improvement & Power Dist. Rev., 4.75%, 1/1/35, Ser. A	Aa2/AA	3,513,265
			5,520,945
	California–3.8%
10,000	Golden State Tobacco Securitization Corp., Tobacco Settlement Rev., 6.75%, 6/1/39, Ser. 2003-A-1	Baa3/BBB	11,139,000
10,000	Riverside Cnty. Public Financing Auth., Tax Allocation, 4.50%, 10/1/30, Ser. A (XLCA)	Aaa/AAA	9,571,000
			20,710,000
	Colorado–2.3%
	Denver Health & Hospital Auth. Healthcare Rev., Ser. A,
2,000	5.375%, 12/1/28	Baa3/BBB	1,996,020
1,000	6.00%, 12/1/23	Baa3/BBB	1,055,070
12,400	Health Facs. Auth. Retirement Facs. Rev., zero coupon, 7/15/24	NR/AAA	5,137,940
4,965	Northwest Parkway Public Highway Auth. Rev., 7.125%, 6/15/41, Ser. D	B3/CCC	4,586,170
			12,775,200
	Connecticut–0.2%
1,000	State Dev. Auth. Pollution Control Rev., 5.85%, 9/1/28	Baa1/BBB–	1,055,510
	District of Columbia–1.0%
5,325	Tobacco Settlement Financing Corp. Rev., 6.25%, 5/15/24	Baa3/BBB	5,649,665
	Florida–1.8%
9,000	Highlands Cnty. Health Facs. Auth. Rev., Adventist Health System, 6.00%, 11/15/31, Ser. A, (Pre-refunded @ $101, 11/15/11) (a)	A2/A+	10,038,330
	Georgia–2.0%
	Municipal Electric Auth. Power Rev. (MBIA-IBC),
9,700	5.50%, 1/1/20	Aaa/AAA	10,607,823
300	5.50%, 1/1/20, Ser. Z, (Pre-refunded @ $100, 1/1/13) (a)	NR/AAA	329,997
			10,937,820

4.30.06 | PIMCO Municipal Income Funds Annual Report 5

PIMCO Municipal Income Fund

Schedule of Investments

April 30, 2006 (continued)


Principal Amount (000)		Credit Rating (Moody's/S&P)*	Value
	Illinois–12.0%
	Chicago, GO, Ser. A (FGIC),
$ 2,935	5.375%, 1/1/34	Aaa/AAA	$ 3,059,150
6,145	5.375%, 1/1/34, (Pre-refunded @ $101, 1/1/09) (a)	Aaa/AAA	6,463,803
10,115	Chicago Board of Education, GO, zero coupon, 12/1/31, Ser. A (FGIC)	Aaa/AAA	2,810,554
2,000	Chicago Water Rev., 5.25%, 11/1/27, (Pre-refunded @ $102, 11/1/07) (FGIC) (a)	Aaa/AAA	2,085,520
	Educational Facs. Auth. Rev.,
1,115	Midwestern Univ., 5.50%, 5/15/18, Ser. B	NR/A–	1,145,506
	Univ. of Chicago,
190	5.25%, 7/1/41	Aa1/AA	197,581
4,810	5.25%, 7/1/41, (Pre-refunded @ $101, 7/1/11) (a)	Aa1/AA	5,178,304
	Finance Auth. Rev.,
5,000	5.50%, 11/15/29, (Pre-refunded @ $101, 11/15/09) (a)	A2/A+	5,315,450
1,260	5.65%, 11/15/24, (Pre-refunded @ $101, 11/15/09) (a)	A2/A+	1,345,680
	Health Facs. Auth. Rev.,
3,000	Decatur Memorial Hospital, 5.75%, 10/1/24	A2/A	3,111,120
5,425	Silver Cross Hospital, 5.50%, 8/15/25, (Pre-refunded @ $101, 8/15/09) (a)	NR/A	5,765,148
	Lake Cnty. Community High School Dist., GO, Ser. B (FGIC),
5,000	zero coupon, 2/1/19	Aaa/AAA	2,772,850
5,000	zero coupon, 2/1/20	Aaa/AAA	2,636,850
5,690	zero coupon, 2/1/22	Aaa/AAA	2,717,146
7,345	Regional Transportation Auth. Rev., 5.50%, 6/1/23, Ser. B (FGIC)	Aaa/AAA	8,326,733
3,000	State Sales Tax Rev., 5.125%, 6/15/20, Ser. 1	Aa3/AAA	3,132,060
5,000	Univ. Rev., 5.25%, 4/1/32, Ser. B (FGIC)	Aaa/AAA	5,167,850
4,000	Winnebago-Boone ETC Cntys. Rock Valley Community College, Dist. No. 511, GO, 5.30%, 10/1/18, (Pre-refunded @ $100, 10/1/10) (FGIC) (a)	Aaa/NR	4,160,640
			65,391,945
	Indiana–1.8%
6,500	Carmel School Building Corp. Rev., 5.00%, 7/15/22 (MBIA)	Aaa/AAA	6,687,850
1,225	Richland-Bean Blossom School Building Corp. Rev., 5.00%, 1/15/22 (FGIC)	Aaa/AA–	1,255,319
1,825	Zionsville Community Schools Building Corp. Rev., 5.00%, 7/15/27, Ser. A (FSA)	NR/AAA	1,870,880
			9,814,049
	Kansas–3.8%
	Wichita Hospital Rev.,
5,000	5.625%, 11/15/31, Ser. III	NR/A+	5,237,450
14,370	6.25%, 11/15/24, Ser. XI	NR/A+	15,373,601
			20,611,051
	Kentucky–0.8%
3,680	Economic Dev. Finance Auth. Hospital Facs. Rev., St. Luke's Hospital, 6.00%, 10/1/19	A3/A	4,061,763

6 PIMCO Municipal Income Funds Annual Report | 4.30.06

PIMCO Municipal Income Fund

Schedule of Investments

April 30, 2006 (continued)


Principal Amount (000)		Credit Rating (Moody's/S&P)*	Value
	Louisiana–6.4%
$ 4,905	Local Gov't Environmental Facs. & Community Dev. Auth. Rev., 6.55%, 9/1/25 (ACA)	NR/A	$ 5,456,665
27,895	Tobacco Settlement Financing Corp. Rev., 5.875%, 5/15/39, Ser. 2001-B	Baa3/BBB	29,255,718
			34,712,383
	Maryland–0.2%
1,150	Baltimore Water Project Rev., 5.125%, 7/1/42, Ser. A (FGIC)	Aaa/AAA	1,185,730
	Massachusetts–1.9%
9,000	Commonwealth of Massachusetts Rev., 5.50%, 1/1/34 (FGIC)	Aaa/AAA	10,331,280
	Michigan–4.4%
	Detroit, GO, Ser. A-1 (MBIA),
1,000	5.375%, 4/1/15	Aaa/AAA	1,064,770
1,000	5.375%, 4/1/17	Aaa/AAA	1,061,770
5,650	Forest Hills Public Schools, GO, 5.25%, 5/1/18, (Pre-refunded @ $100, 5/1/10) (a)	Aa2/NR	5,961,654
3,000	Mount Clemens Community School Dist., GO, 5.00%, 5/1/31	Aa2/AA	3,064,980
50	Royal Oak Hospital Finance Auth. Rev., William Beaumont Hospital, 5.25%, 11/15/35, Ser. M (MBIA)	Aaa/AAA	51,350
4,000	State Hospital Finance Auth. Rev., Detroit Medical Center, 6.25%, 8/15/13	Ba3/BB–	4,006,520
2,000	State Strategic Fund Ltd. Obligation Rev., Detroit Edison Pollution Control Co., 5.45%, 9/1/29	A3/BBB+	2,072,700
3,000	Taylor Tax Increment Finance Auth., 5.375%, 5/1/17 (FSA)	Aaa/AAA	3,179,490
6,255	Wayne Charter Cnty. Airport Fac. Rev., 6.75%, 12/1/15 (h)	NR/NR	3,445,880
			23,909,114
	Minnesota–0.6%
	Agricultural & Economic Dev. Board Rev., Health Care System,
95	6.375%, 11/15/29	A2/A	104,482
2,905	6.375%, 11/15/29, (Pre-refunded @ $101, 11/15/10) (a)	A2/A	3,244,711
			3,349,193
	Missouri–0.5%
2,500	Interstate 470 & 350 Transportation Dev. Dist. Rev., 6.35%, 5/1/22	NR/NR	2,539,625
	Nevada–1.4%
3,000	Clark Cnty. Rev., 5.25%, 7/1/34, Ser. B, (Pre-refunded @ $100, 7/1/11) (FGIC) (a)	Aaa/AAA	3,212,130
4,250	Truckee Meadows Water Auth. Rev., 5.25%, 7/1/34, Ser. A, (Pre-refunded @ $100, 7/1/11) (FSA) (a)	Aaa/AAA	4,399,048
			7,611,178
	New Hampshire–0.6%
3,000	State Business Finance Auth. Pollution Control Rev., Conn. Light & Power Co., 5.85%, 12/1/22	Baa1/BBB–	3,170,100

4.30.06 | PIMCO Municipal Income Funds Annual Report 7

PIMCO Municipal Income Fund

Schedule of Investments

April 30, 2006 (continued)


Principal Amount (000)		Credit Rating (Moody's/S&P)*	Value
	New Jersey–4.0%
	Camden Cnty., Improvement Auth. Rev., Cooper Health System,
$ 240	5.60%, 2/15/07	Baa3/BBB	$ 240,158
875	6.00%, 2/15/27, (Pre-refunded @ $102, 2/15/07) (a)	Baa3/BBB	907,340
16,550	Economic Dev. Auth., Kapkowski Landfill Project, 5.75%, 4/1/31	Baa3/NR	17,569,811
	Economic Dev. Auth. Rev., Arbor Glen,
2,510	5.875%, 5/15/16	NR/NR	2,569,638
490	5.875%, 5/15/16, Ser. A, (Pre-refunded @ $102, 5/15/09) (a)	NR/NR	528,049
			21,814,996
	New Mexico–0.5%
2,500	Farmington Pollution Control Rev., 5.80%, 4/1/22	Baa2/BBB	2,534,950
	New York–2.1%
5,000	Liberty Dev. Corp. Rev., Goldman Sachs Headquarters, 5.25%, 10/1/35	Aa3/A+	5,402,100
3,000	New York City Municipal Water Finance Auth., Water & Sewer System Rev., 5.00%, 6/15/39, Ser. A	Aa2/AA+	3,070,170
2,875	Westchester Cnty. Healthcare Corp. Rev., 5.875%, 11/1/25, Ser. A	Ba2/BB	2,896,390
			11,368,660
	North Carolina–0.6%
3,000	Capital Facs. Finance Agcy. Rev., Duke Univ. Project, 5.125%, 10/1/41, Ser. A	Aa1/AA+	3,078,900
	Ohio–1.2%
	Lorain Cnty. Hospital Rev., Catholic Healthcare Partners,
2,500	5.625%, 10/1/17	Aa3/AA–	2,664,450
2,565	5.75%, 10/1/18	Aa3/AA–	2,746,448
1,235	State Turnpike Commission Rev., 5.50%, 2/15/15	Aa3/AA	1,314,843
			6,725,741
	Pennsylvania–4.2%
	Allegheny Cnty.,
5,780	Hospital Dev. Auth. Rev., 9.25%, 11/15/30, Ser. B	Ba3/B+	6,900,395
1,000	Industrial Dev. Auth. Rev., USX Corp., 5.60%, 9/1/30	Baa1/BBB+	1,030,420
1,095	Port Auth. Rev., 5.25%, 3/1/20 (FGIC)	Aaa/AAA	1,154,645
2,575	Delaware Cnty. Auth. College Rev., Neumann College, 5.80%, 10/1/17	NR/BBB–	2,673,957
6,200	Higher Educational Facs. Auth. Rev., 6.00%, 1/15/31, Ser. A	Aa3/A+	6,733,138
4,610	Philadelphia Hospitals & Higher Education Facs. Hospital Rev.,
	Temple Univ. Hospital, 6.625%, 11/15/23, Ser. A	Baa2/BBB	4,617,699
			23,110,254
	Puerto Rico–0.3%
1,600	Electric Power Auth., Power Rev., 5.125%, 7/1/29, Ser. NN	A3/BBB+	1,646,720
	Rhode Island–3.5%
18,000	Tobacco Settlement Financing Corp. Rev., 6.25%, 6/1/42, Ser. A	Baa3/BBB	18,877,680

8 PIMCO Municipal Income Funds Annual Report | 4.30.06

PIMCO Municipal Income Fund

Schedule of Investments

April 30, 2006 (continued)


Principal Amount (000)		Credit Rating (Moody's/S&P)*	Value
	South Carolina–4.8%
	Greenwood Cnty. Hospital Rev., Self Memorial Hospital,
$ 3,500	5.50%, 10/1/21	A2/A	$ 3,608,640
2,000	5.50%, 10/1/26	A2/A	2,063,040
3,000	Jobs Economic Dev. Auth. Hospital Facs. Rev., Georgetown Memorial Hospital, 5.375%, 2/1/30 (Radian)	NR/AA	3,111,270
15,600	Tobacco Settlement Rev., Management Auth. Rev., 6.375%, 5/15/30, Ser. B	Baa3/BBB	17,430,036
			26,212,986
	Tennessee–0.2%
940	Memphis Health Educational & Housing Fac., Wesley Housing Corp. Project, 6.95%, 1/1/20	NR/NR	894,340
	Texas–12.2%
1,750	Austin Convention Enterprises, Inc., 5.75%, 1/1/32, Ser. B	A3/NR	1,803,112
4,000	Austin Rev., 5.25%, 5/15/31, Ser. A & B (FSA)	Aaa/AAA	4,130,080
2,935	Bell Cnty. Health Fac. Dev. Corp., 5.25%, 11/15/19	NR/A–	2,964,379
10,000	Coppell Independent School Dist., GO, zero coupon, 8/15/29 (PSF-GTD)	NR/AAA	3,203,000
	Corpus Christi Refinance & Improvement, GO (FSA),
1,125	5.375%, 3/1/18	Aaa/AAA	1,191,218
1,740	5.375%, 3/1/18, (Pre-refunded @ $100, 3/1/11) (a)	Aaa/AAA	1,865,297
3,680	Duncanville Independent School Dist., GO, 5.25%, 2/15/32, Ser. B, (Pre-refunded @ $100, 2/15/12) (PSF-GTD) (a)	Aaa/AAA	3,841,773
	Harris Cnty. Health Facs. Dev. Corp. Rev.,
5,000	Christus Health, 5.375%, 7/1/29, Ser. A, (Pre-refunded @ $101, 7/1/09) (MBIA) (a)	Aaa/AAA	5,296,550
7,000	Memorial Hermann Healthcare, 6.375%, 6/1/29, (Pre-refunded @ $101, 6/1/11) (a)	A2/A	7,889,770
1,840	Houston, CP, 6.25%, 12/15/12, Ser. J (AMBAC)	Aaa/AAA	2,079,642
2,000	Mansfield Independent School Dist., GO, 5.25%, 2/15/23 (PSF-GTD)	Aaa/AAA	2,090,900
4,380	Southlake Park Dev. Corp. Rev., 5.60%, 8/15/31, (Pre-refunded @ $100, 2/15/11) (AMBAC) (a)	Aaa/AAA	4,623,484
4,530	State, GO, 5.30%, 8/1/18, Ser. A	Aa1/AA	4,770,181
19,990	State Turnpike Auth. Rev., zero coupon, 8/15/25, Ser. A (AMBAC)	Aaa/AAA	8,024,186
4,920	Univ. Rev., 5.00%, 7/1/26, Ser. B	Aaa/AAA	5,106,615
7,450	Water Dev. Board Rev., 5.125%, 7/15/18	Aaa/AAA	7,517,646
			66,397,833
	Utah–1.3%
7,000	Salt Lake Cnty. Hospital Rev., IHC Health Services, 5.125%, 2/15/33 (AMBAC)	Aaa/AAA	7,195,020
	Washington–2.3%
	Cowlitz Cnty. School Dist. No. 458 Kelso, GO (FSA),
910	5.625%, 12/1/14,	NR/NR	992,264
985	5.625%, 12/1/14, (Pre-refunded @ $100, 12/01/11) (a)	NR/NR	1,075,590
1,225	5.625%, 12/1/16, (Pre-refunded @ $100, 12/01/11) (a)	Aaa/NR	1,337,663

4.30.06 | PIMCO Municipal Income Funds Annual Report 9

PIMCO Municipal Income Fund

Schedule of Investments

April 30, 2006 (continued)


Principal Amount (000)		Credit Rating (Moody's/S&P)*	Value
	Washington (continued)
$ 3,415	Kent, GO, 5.375%, 12/1/20 (MBIA)	NR/NR	$ 3,638,034
5,420	King Cnty. School Dist. No. 1 Seattle, GO, 5.25%, 12/1/21, Ser. A (MBIA)	Aaa/AAA	5,700,214
			12,743,765
	Wisconsin–4.3%
	Badger Tobacco Asset Securitization Corp.,
5,000	5.75%, 6/1/12	Baa3/BBB	5,274,550
9,785	6.00%, 6/1/17	Baa3/BBB	10,276,305
3,515	State, GO, 5.00%, 5/1/22, Ser. A (FGIC)	Aaa/AAA	3,647,551
2,230	State Health & Educational Facs. Auth. Rev., Kenosha Hospital & Medical Center, 5.625%, 5/15/29	NR/A	2,270,519
2,250	Wisconsin Health & Educational Facs. Auth., Divine Savior Healthcare Rev., 5.00%, 5/1/32	NR/BBB	2,195,640
			23,664,565
	Total Municipal Bonds & Notes (cost–$481,453,395)		505,588,600
VARIABLE RATE NOTES (b)(c)(d)–4.7%
	Hawaii–0.3%
1,388	City & Cnty. of Honolulu Rev., 8.72%, 7/1/23, Ser. 400 (FGIC)	Aaa/NR	1,637,097
	Illinois–1.1%
2,902	Cook Cnty., GO, 8.76%, 11/15/28, Ser. 458 (FGIC)	Aaa/NR	3,298,343
2,765	Educational Facs. Auth. Rev., 9.587%, 7/1/38	NR/AA	3,042,385
			6,340,728
	Massachusetts–0.5%
2,000	State Health & Educational Facs. Auth. Rev., 12.762%, 7/1/32	NR/NR	2,754,000
	Nevada–0.5%
2,440	Washoe Cnty., GO, 8.784%, 1/1/35, Ser. 1241 (MBIA)	Aaa/AAA	2,816,029
	New York–0.6%
224	New York City Municipal Water Finance Auth., Water & Sewer System Rev., 8.87%, 6/15/37, Ser. 1226	Aa2/NR	254,475
2,600	New York City Municipal Water Finance Auth. Rev., 8.933%, 6/15/26	NR/AA+	3,007,290
			3,261,765
	Texas–1.3%
	Harris Cnty. Health Facs. Dev. Corp. Rev.,
3,595	10.64%, 7/1/29, Ser. 357 (MBIA)	Aaa/NR	4,661,097
1,720	10.754%, 2/15/26	NR/AA–	2,342,296
			7,003,393
	Washington–0.4%
1,800	Seattle, GO, 9.39%, 12/15/28, Ser. 348	Aa1/NR	2,017,260
	Total Variable Rate Notes (cost–$20,842,533)		25,830,272

10 PIMCO Municipal Income Funds Annual Report | 4.30.06

PIMCO Municipal Income Fund

Schedule of Investments

April 30, 2006 (continued)

Principal
Amount
(000)

Credit Rating
(Moody's/S&P)*

Value

VARIABLE RATE DEMAND NOTES (d)(e)–2.1%

Alaska–0.5%

Valdez Rev.,

$ 2,300

3.63%, 5/1/06

VMIG1/A-1+

$ 2,300,000

200

3.77%, 5/1/06

VMIG1/A-1+

200,000

2,500,000

California–0.0%

220

State of California, Daily Kindergarten Univ., GO, 3.75%, 5/1/06

VMIG1/A-1+

220,000

Indiana–0.0%

100

Indiana Health Fac. Financing Auth. Rev., 3.83%, 5/1/06

VMIG1/A-1

100,000

Michigan–0.8%

4,065

Univ. of Michigan Rev., 3.76%, 5/1/06, Ser. A

VMIG1/A-1+

4,065,000

New York–0.8%

4,600

New York City Transitional Finance Auth., 3.76%, 5/1/06, Ser. 1

VMIG1/A-1+

4,600,000

Total Variable Rate Demand Notes (cost–$11,485,000)

11,485,000

U.S. TREASURY BILLS (f)–0.6%

3,405

4.49%-4.58%, 6/1/06-6/15/06 (cost–$3,387,024)

3,387,024

OPTIONS PURCHASED (g)–0.0%

Contracts

Put Options–0.0%

Eurodollar Futures, Chicago Mercantile Exchange,

125

strike price $92, expires 3/19/07 (cost–$1,188)

781

Total Investments before options written (cost–$517,169,140)–100.1%

546,291,677

OPTIONS WRITTEN (g)–(0.1)%

Call Options–(0.0)%

U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade,

700

strike price $110, expires 5/26/06

(10,938)

Put Options–(0.1)%

U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade,

741

strike price $105, expires 5/26/06

(185,250)

700

strike price $106, expires 5/26/06

(492,187)

(677,437)

Total Options Written (premiums received–$544,557)

(688,375)

Total Investments net of options written (cost–$516,624,583)–100.0%

$545,603,302

See accompanying Notes to Financial Statements | 4.30.06 | PIMCO Municipal Income Funds Annual Report 11

PIMCO California Municipal Income Fund

Schedule of Investments

April 30, 2006


Principal Amount (000)		Credit Rating (Moody's/S&P)*	Value
CALIFORNIA MUNICIPAL BONDS & NOTES–88.6%
	ABAG Finance Auth. for Nonprofit Corps.,
$1,000	CP, 5.375%, 2/15/19	NR/BBB	$ 1,038,950
1,000	Rev., 5.375%, 11/15/25 (CA Mtg. Ins.)	NR/A	1,043,730
1,385	Alvord Unified School Dist., GO, 5.375%, 8/1/29, Ser. C (FSA)	Aaa/NR	1,396,108
8,000	California Cnty., Tobacco Settlement Rev., zero coupon, 6/1/28	Baa3/NR	6,295,360
6,405	Campbell Union High School Dist., GO, 5.50%, 8/1/30, (FSA)	Aaa/NR	6,821,005
2,250	Capistrano Unified School Dist., Special Tax, 5.75%, 9/1/29, (Pre-refunded @ $102, 9/1/09) (a)	NR/NR	2,433,622
	Carson, Improvement Board Act 1915, Special Assessment,
3,250	6.35%, 9/2/23	NR/NR	3,356,958
5,000	6.375%, 9/2/31	NR/NR	5,163,600
5,250	Central JT Powers Health Financing Auth., CP, 5.75%, 2/1/31	Baa2/BBB–	5,336,625
4,140	Charter Oak Unified School Dist., GO, 5.00%, 7/1/28, Ser. B, (Pre-refunded @ $100, 7/1/13) (FSA) (a)	Aaa/AAA	4,437,997
	Contra Costa Cnty. Public Financing Auth., Tax Allocation,
2,150	5.125%, 8/1/19	NR/BBB	2,202,912
600	5.125%, 8/1/19, (Pre-refunded @ $102, 8/1/09) (a)	NR/BBB	636,726
5,000	5.85%, 8/1/33	NR/BBB	5,221,250
2,750	CSUCI Financing Auth. Rev., 5.00%, 9/1/31, Ser. A (MBIA)	Aaa/AAA	2,811,710
3,635	Cucamonga Cnty. Water Dist., CP, 5.125%, 9/1/35 (FGIC)	Aaa/AAA	3,722,458
	East Side Union High School Dist.-Santa Clara Cnty., GO, Ser. E (XLCA),
1,985	zero coupon, 8/1/21	Aaa/AAA	918,440
1,490	zero coupon, 8/1/22	Aaa/AAA	649,223
	El Monte, CP (AMBAC),
10,790	4.75%, 6/1/30	Aaa/AAA	10,833,052
14,425	5.25%, 1/1/34	Aaa/AAA	14,954,253
	Foothill/Eastern Corridor Agcy. Rev., Toll Road Rev.,
5,000	zero coupon, 1/15/33	Baa3/BBB–	1,036,200
5,000	zero coupon, 1/15/34	Baa3/BBB–	974,000
	Fremont Community Dist., Special Tax,
165	6.00%, 9/1/18	NR/NR	169,440
505	6.00%, 9/1/19	NR/NR	516,479
3,500	6.30%, 9/1/31	NR/NR	3,577,595
	Golden State Tobacco Securitization Corp. Rev.,
17,500	6.25%, 6/1/33, Ser. 2003-A-1	Baa3/BBB	19,039,475
10,155	6.75%, 6/1/39, Ser. 2003-A-1	Baa3/BBB	11,311,654
540	7.875%, 6/1/42, Ser. A-3	Baa3/BBB	642,902
1,000	Health Facs. Finance Auth. Rev., Catholic Healthcare West, 5.00%, 7/1/28, (Pre-refunded @ $101, 7/1/08) (a)	A3/A–	967,405

12 PIMCO Municipal Income Funds Annual Report | 4.30.06

PIMCO California Municipal Income Fund

Schedule of Investments

April 30, 2006 (continued)


Principal Amount (000)		Credit Rating (Moody's/S&P)*	Value
	Health Facs. Financing Auth. Rev.,
$1,980	5.00%, 7/1/18	A3/A–	$ 2,031,619
130	5.00%, 7/1/18, (Pre-refunded @ $101, 7/1/08) (a)	A3/A–	134,949
5,315	5.125%, 7/1/18	NR/BBB+	5,360,549
3,000	5.25%, 10/1/14, Ser. B	A3/AAA	3,142,200
6,250	Infrastructure & Economic Dev. Bank Rev., Bay Area Toll Bridges, 5.00%, 7/1/36, (Pre-refunded @ $100, 1/1/28) (AMBAC) (a)	Aaa/AAA	6,688,188
	La Quinta Redev. Agcy., Tax Allocation (AMBAC),
3,000	5.00%, 9/1/21	Aaa/AAA	3,090,690
10,000	5.10%, 9/1/31	Aaa/AAA	10,220,000
1,000	5.125%, 9/1/32	Aaa/AAA	1,032,420
1,500	Lincoln Public Financing Auth. Rev., Twelve Bridges Ltd., 6.125%, 9/2/27	NR/NR	1,532,955
6,250	Los Angeles Cnty. Metropolitan Transportation Auth. Rev., 4.75%, 7/1/28, Ser. B, (Pre-refunded @ $101, 7/1/09) (FSA) (a)	Aaa/AAA	6,524,250
	Los Angeles Community Redev. Agcy., Tax Allocation,
520	5.875%, 9/1/26	NR/NR	515,871
325	6.00%, 9/1/31	NR/NR	323,290
3,250	Los Angeles Unified School Dist., GO, 5.125%, 7/1/21, Ser. E (MBIA)	Aaa/AAA	3,404,342
12,000	Los Angeles Water & Power Rev., 5.25%, 7/1/21, Ser. A-A-1 (FSA)	Aaa/AAA	12,658,200
3,500	Metropolitan Water Dist. of Southern California Rev., Water Works Rev., 5.00%, 7/1/26, Ser. A, (Pre-refunded @ $101, 1/1/08) (a)	Aa2/AAA	3,613,996
5,820	Montclair Redev. Agcy., Tax Allocation, 5.30%, 10/1/30 (MBIA)	Aaa/AAA	6,159,597
	Murrieta Valley Unified School Dist., Special Tax,
195	6.30%, 9/1/18	NR/NR	200,292
3,535	6.50%, 9/1/31	NR/NR	3,641,757
6,255	Orange Cnty. Sanitation Dist., CP, 5.25%, 2/1/30 (FGIC)	Aaa/AAA	6,569,439
1,080	Palm Springs Community Redev. Agcy., Tax Allocation, 5.50%, 8/1/21	NR/A–	1,129,766
1,010	Pomona Unified School Dist., GO, 6.10%, 2/1/19, Ser. A (MBIA)	Aaa/AAA	1,186,871
1,690	Rancho Etiwanda Public Facs., Special Tax, 6.375%, 9/1/24	NR/NR	1,738,148
	Rancho Mirage Redev. Agcy., Tax Allocation,
1,190	5.50%, 4/1/24	Baa1/BBB+	1,240,456
1,580	5.625%, 4/1/33	Baa1/BBB+	1,641,383
	Riverside, Improvement Board Act 1915, Special Assessment,
500	6.15%, 9/2/19	NR/NR	531,585
1,350	6.375%, 9/2/26	NR/NR	1,442,340
8,305	Riverside Cnty., CP, 5.125%, 11/1/30 (MBIA)	Aaa/AAA	8,562,787
	Riverside Cnty. Public Auth. Financing, Tax Allocation,
185	5.625%, 10/1/33	Baa2/A	189,795
815	5.625%, 10/1/33, (Pre-refunded @ $102, 10/1/06) (a)	Baa2/A	837,690
575	Roseville, Woodcreek Community Fac. Dist., Special Tax, 6.375%, 9/1/27, (Pre-refunded @ $102, 9/1/10) (a)	NR/NR	645,765

4.30.06 | PIMCO Municipal Income Funds Annual Report 13

PIMCO California Municipal Income Fund

Schedule of Investments

April 30, 2006 (continued)


Principal Amount (000)		Credit Rating (Moody's/S&P)*	Value
	Sacramento, Special Tax,
$2,945	5.70%, 9/1/23	NR/NR	$ 2,989,970
1,350	6.10%, 9/1/21	NR/NR	1,380,604
2,560	6.15%, 9/1/26	NR/NR	2,622,669
2,000	Sacramento Health Fac. Rev., 5.30%, 1/1/24, Ser. A (CA Mtg. Ins.)	NR/A	2,054,240
545	San Diego Cnty., CP, 5.25%, 10/1/28	A2/NR	561,514
1,000	San Diego Cnty. Water Auth., CP, 5.00%, 5/1/32, Ser. A (MBIA)	Aaa/AAA	1,023,150
3,330	San Francisco Bay Area Rapid Transit Dist. Rev., 5.125%, 7/1/36 (AMBAC)	Aaa/AAA	3,409,287
720	San Francisco City & Cnty. Redev. Agcy. Rev., Special Tax, 6.125%, 8/1/31	NR/NR	748,822
5,065	San Joaquin Cnty., CP, 5.00%, 9/1/20 (MBIA)	Aaa/AAA	5,220,698
	San Joaquin Hills Transportation Corridor Agcy. Toll Road Rev., Ser. A,
5,000	zero coupon, 1/15/19	Ba2/B	4,753,900
5,000	5.50%, 1/15/28	Ba2/B	4,932,850
230	San Jose, Improved Board Act 1915, Special Assessment, 5.60%, 9/2/17, Ser. Q	NR/NR	237,093
5,000	San Jose Unified School Dist., Santa Clara Cnty., GO, 5.125%, 8/1/25, Ser. D, (Pre-refunded @ $101, 8/1/10) (FSA) (a)	Aaa/AAA	5,340,350
	San Juan Unified School Dist., GO (FSA),
9,445	zero coupon, 8/1/22	Aaa/AAA	4,350,084
10,895	zero coupon, 8/1/25	Aaa/AAA	4,299,821
6,110	zero coupon, 8/1/26	Aaa/AAA	2,284,040
600	Santa Ana Financing Auth. Rev., 5.60%, 9/1/19	NR/BBB	623,502
1,815	Santa Clara, CP, 5.00%, 2/1/32 (AMBAC)	Aaa/AAA	1,861,845
1,435	Santa Maria JT Union High School Dist., GO, 5.25%, 8/1/25, Ser. A, (Pre-refunded @ $102, 8/1/15) (FSA)(a)	Aaa/AAA	1,550,116
500	State Department of Water Rev., Central Valley Project, 5.00%, 12/1/25, Ser. AC (MBIA)	Aaa/AAA	519,775
	Statewide Community Dev. Auth., CP,
8,000	5.375%, 4/1/30	NR/BBB	7,972,880
2,325	6.50%, 7/1/20	A3/A–	2,522,486
5,675	6.50%, 7/1/20, (Pre-refunded @ $101, 7/1/10) (a)	A3/A–	6,319,340
	Statewide Community Dev. Auth. Rev.,
15,250	5.125%, 10/1/30 (CA Mtg. Ins.)	NR/A	15,456,332
3,000	5.50%, 11/15/33 (CA ST Mtg.)	NR/A	3,158,490
4,000	5.50%, 8/15/34, Ser. B	Aa3/AA–	4,150,040
5,600	6.625%, 10/1/31	NR/NR	5,694,752
4,300	6.625%, 11/1/31	NR/NR	4,292,088
2,550	6.75%, 6/1/28	NR/NR	2,638,179
	Tobacco Securitization Auth. Rev., Ser. A, (Pre-refunded @ $100, 6/1/11) (a)
1,500	5.25%, 6/1/31	Aaa/AAA	1,608,120
9,300	5.375%, 6/1/41	Aaa/AAA	10,023,726

14 PIMCO Municipal Income Funds Annual Report | 4.30.06

PIMCO California Municipal Income Fund

Schedule of Investments

April 30, 2006 (continued)


Principal Amount (000)		Credit Rating (Moody's/S&P)*	Value
$1,650	Town of Apple Valley, CP, 5.375%, 6/1/21 (CA Mtg. Ins.)	NR/A	$ 1,731,329
	Tustin Unified School Dist., Special Tax,
2,345	5.50%, 9/1/22	NR/NR	2,337,308
2,520	5.60%, 9/1/29	NR/NR	2,538,598
2,000	5.625%, 9/1/32	NR/NR	2,012,340
	University Rev.,
10,000	5.00%, 5/15/36, Ser. A (AMBAC)	Aaa/AAA	10,219,800
7,000	5.125%, 9/1/31, Ser. O (FGIC)	Aaa/AAA	7,272,370
3,750	West Kern Cnty. Water Dist., CP, 5.625%, 6/1/31, (Pre-refunded @ $101, 6/1/10) (a)	Baa2/NR	4,053,075
	Total California Municipal Bonds & Notes (cost–$337,181,089)		358,265,902
OTHER MUNICIPAL BONDS & NOTES–8.8%
	Alabama–0.6%
2,900	Daphne Special Care Facs. Financing Auth. Rev., zero coupon, 8/15/28 (Pre-refunded @ $100, 8/15/08) (a)	Aaa/AAA	2,608,724
	Illinois–1.4%
	Educational Facs. Auth. Rev., Univ. of Chicago,
5,260	5.00%, 7/1/33	Aa1/AA	5,393,288
240	5.00%, 7/1/33, (Pre-refunded @ $100, 7/1/13) (a)	Aa1/AA	255,727
			5,649,015
	Iowa–2.0%
8,700	Tobacco Settlement Auth. Rev., zero coupon, 6/1/34, Ser. B	Baa3/BBB	8,101,788
	Louisiana–0.5%
1,750	Tobacco Settlement Financing Corp. Rev., 5.875%, 5/15/39, Ser. 2001B	Baa3/BBB	1,835,365
	New Jersey–1.6%
	Tobacco Settlement Financing Corp. Rev.,
1,685	6.00%, 6/1/37	Baa3/BBB	1,762,426
2,210	6.125%, 6/1/42	Baa3/BBB	2,322,290
2,315	6.375%, 6/1/32	Baa3/BBB	2,518,488
			6,603,204
	New York–0.6%
2,000	State Dormitory Auth. Rev., 6.25%, 8/15/15 (FHA)	Aa2/AAA	2,261,920
	Puerto Rico–1.6%
	Electric Power Auth., Power Rev.,
1,250	5.125%, 7/1/29, Ser. NN	A3/BBB+	1,286,500
5,000	5.25%, 7/1/29, Ser. HH (FSA)	Aaa/AAA	5,299,250
			6,585,750
	Rhode Island–0.4%
1,500	Tobacco Settlement Financing Corp. Rev., 6.125%, 6/1/32, Ser. A	Baa3/BBB	1,571,445

4.30.06 | PIMCO Municipal Income Funds Annual Report 15

PIMCO California Municipal Income Fund

Schedule of Investments

April 30, 2006 (continued)


Principal Amount (000)		Credit Rating (Moody's/S&P)*	Value
	South Carolina–0.1%
$ 340	Tobacco Settlement Rev. Management Auth., 6.375%, 5/15/30, Ser. B	Baa3/BBB	$379,886
	Total Other Municipal Bonds & Notes (cost–$33,106,099)		35,597,097

CALIFORNIA VARIABLE RATE NOTES (b)(c)(d)–2.2%
4,001	Los Angeles Wastewater System Rev., 8.88%, 6/1/28, Ser. 318 (FGIC)	Aaa/NR	4,762,390
1,000	Los Angeles Water & Power Rev., 7.66%, 7/1/30, Ser. 1243 (FSA)	Aaa/AAA	1,047,800
1,000	Sacramento Cnty. Sanitation Dist. Rev., 8.652%, 8/1/13, Ser. 1034 (MBIA)	Aa/AAA	1,175,550
2,000	University Rev., 7.64%, 5/15/35, Ser. 1119 (FSA)	NR/AAA	2,019,700
	Total California Variable Rate Notes (cost–$8,148,232)		9,005,440
U.S. TREASURY BILLS (f)–0.4%
1,650	4.46%-4.58%, 6/1/06-6/15/06 (cost–$1,640,827)		1,640,827
	Total Investments before options written (cost–$380,076,247)–100.0%		404,509,266
OPTIONS WRITTEN (g)–(0.0)%
Contracts
	Call Options–(0.0)%
	U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade,
190	strike price $110, expires 5/26/06		(2,969)

	Put Options–(0.0)%
	U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade,
175	strike price $105, expires 5/26/06		(43,750)
190	strike price $106, expires 5/26/06		(133,593)
			(177,343)
	Total Options Written (premiums received–$139,915)		(180,312)
	Total Investments net of options written (cost–$379,936,332)–100.0%		$404,328,954

16 PIMCO Municipal Income Funds Annual Report | 4.30.06 | See accompanying Notes to Financial Statements

PIMCO New York Municipal Income Fund

Schedule of Investments

April 30, 2006


Principal Amount (000)		Credit Rating (Moody's/S&P)*	Value
NEW YORK MUNICIPAL BONDS & NOTES–79.1%
$3,265	Albany Industrial Dev. Agcy. Civic Fac. Rev., 5.30%, 4/1/29, Ser. A	Baa3/NR	$ 3,352,371
1,600	Erie Cnty. Industrial Dev. Agcy., Orchard Park Rev., 6.00%, 11/15/36	NR/NR	1,655,648
1,000	Long Island Power Auth. Electric System Rev., 5.375%, 5/1/33, Ser. L	A3/A–	1,041,470
	Metropolitan Transportation Auth. NY Service Contract Rev., Ser. A,
6,040	5.00%, 7/1/25 (FGIC)	Aaa/AAA	6,256,474
8,150	5.00%, 7/1/30 (AMBAC)	Aaa/AAA	8,375,511
1,375	5.125%, 1/1/29	A1/AA–	1,427,456
1,500	Monroe Tobacco Asset Securitization Corp., Tobacco Settlement Rev., 6.375%, 6/1/35, (Pre-refunded @ $101, 6/1/10) (a)	Aaa/AAA	1,666,455
	New York City, GO, Ser. J,
4,945	5.125%, 5/15/29 (MBIA)	AAA/AAA	5,127,520
55	5.125%, 5/15/29, (Pre-refunded @ $101, 5/15/09) (MBIA)(a)	AAA/AAA	57,802
300	5.25%, 6/1/28	A1/A+	314,238
	New York City Municipal Water Finance Auth., Water & Sewer System Rev.,
7,605	4.75%, 6/15/31, Ser. A (FGIC)	Aaa/AAA	7,632,986
7,000	5.125%, 6/15/21, Ser. A (AMBAC-TCRS)	Aaa/AAA	7,171,150
5,000	5.125%, 6/15/33, Ser. C	Aa2/AA+	5,181,450
5,000	5.25%, 6/15/25, Ser. D	Aa2/AA+	5,296,250
2,250	New York City Transitional Finance Auth. Rev., 4.75%, 11/15/23, Ser. B	Aa1/AAA	2,279,610
130	New York Cntys. Tobacco Trust II Rev., 5.75%, 6/1/43	Ba1/BBB	132,729
1,000	Niagara Falls Public Water Auth., Water & Sewer System Rev., 5.00%, 7/15/34, Ser. A (MBIA)	Aaa/AAA	1,030,390
	Port Auth. of New York & New Jersey Rev., Ser. 132,
3,000	5.00%, 9/1/29	A1/AA–	3,094,590
5,000	5.00%, 9/1/38	A1/AA–	5,134,700
4,515	Sachem Central School Dist. of Holbrook, GO, 5.00%, 10/15/30, Ser. B (MBIA)	Aaa/AAA	4,670,903
6,550	State Dormitory Auth. Lease Rev., 4.75%, 1/15/29, Ser. 1 (FSA)	Aaa/AAA	6,593,426
	State Dormitory Auth. Rev.,
	Augustana Lutheran Home for the Aged, Inc. (MBIA-FHA),
100	5.40%, 2/1/31	Aaa/AAA	105,476
1,435	5.50%, 2/1/41	Aaa/AAA	1,516,723
3,850	Lenox Hill Hospital, Obligation Group, 5.50%, 7/1/30	Ba2/NR	3,718,484
	Mental Health Services Facs. Improvement, Ser. D (MBIA),
7,985	4.75%, 2/15/25	Aaa/AAA	8,035,944
15	4.75%, 2/15/25, (Pre-refunded @ $100, 8/15/08) (a)	Aaa/AAA	15,496
1,825	Mount Sinai Health, 6.50%, 7/1/25, Ser. A	Ba1/BB	1,950,341
7,000	NY & Presbyterian Hospital Rev., 4.75%, 8/1/27 (AMBAC-FHA)	Aaa/AAA	7,061,600
445	NY Univ., 5.50%, 7/1/21, Ser. 2 (AMBAC)	Aaa/AAA	474,966
4,000	Sloan-Kettering Center Mem., 5.00%, 7/1/34, Ser. 1	Aa2/AA	4,067,120
1,275	Winthrop Univ. Hospital Assoc., 5.25%, 7/1/31, Ser. A (AMBAC)	Aaa/AAA	1,339,872

4.30.06 | PIMCO Municipal Income Funds Annual Report 17

PIMCO New York Municipal Income Fund

Schedule of Investments

April 30, 2006 (continued)


Principal Amount (000)		Credit Rating (Moody's/S&P)*	Value
	State Dormitory Auth. State Univ., GO (FSA-CR)(a)
$1,270	4.75%, 5/15/28, (Pre-refunded @ $101, 5/15/08)	Aaa/AAA	$ 1,308,926
1,045	4.75%, 5/15/28, Ser. B, (Pre-refunded @ $101, 5/15/08)	Aaa/AAA	1,077,029
5,000	State Thruway Auth. General Rev., 4.75%, 1/1/19, Ser. E	Aa3/AA–	5,083,650
3,975	State Urban Dev. Corp. Rev. Correctional Fac. Service, 4.75%, 1/1/28, Ser. B, (Pre-refunded @ $101, 1/1/09) (AMBAC)(a)	Aaa/AAA	4,120,843
	Triborough Bridge & Tunnel Auth. Rev., Ser. A,
2,000	5.00%, 1/1/27	Aa2/AA–	2,055,400
755	5.00%, 1/1/32	Aa2/AA–	772,501
4,245	5.00%, 1/1/32, (Pre-refunded @ $100, 1/1/12) (a)	Aa2/AA–	4,506,492
2,945	Warren & Washington Cntys. Industrial Dev. Agcy. Rev., Glens Falls Hospital Project Rev., 5.00%, 12/1/27, Ser. C (FSA)	Aaa/AAA	3,059,649
	Total New York Municipal Bonds & Notes (cost–$121,675,362)		127,763,641
OTHER MUNICIPAL BONDS & NOTES–9.4%
	Alabama–0.7%
1,200	Daphne Special Care Facs. Financing Auth. Rev., zero coupon, 8/15/28, (Pre-refunded @ $100, 8/15/08) (a)	Aaa/AAA	1,079,472
	California–1.0%
2,000	California Cnty., Tobacco Settlement Rev., zero coupon, 6/1/28	Baa3/NR	1,573,840
	Illinois–2.5%
	Educational Facs. Auth. Rev.,
3,825	5.00%, 7/1/33	Aa1/AA	3,921,925
175	5.00%, 7/1/33, (Pre-refunded @ $100, 7/1/13) (a)	Aa1/AA	186,468
			4,108,393
	Louisiana–0.5%
750	Tobacco Settlement Financing Corp. Rev., 5.875%, 5/15/39, Ser. 2001-B	Baa3/BBB	786,585
	Nevada–3.4%
5,500	Truckee Meadows Water Auth. Rev., 4.75%, 7/1/31, Ser. A (MBIA)	Aaa/AAA	5,499,670
	Puerto Rico–1.3%
1,500	Commonwealth Highway & Transportation Auth. Rev., 5.25%, 7/1/38, Ser. D, (Pre-refunded @ $100, 7/1/12) (a)	Baa2/AAA	1,620,105
500	Electric Power Auth., Power Rev., 5.125%, 7/1/29, Ser. NN	A3/BBB+	514,600
			2,134,705
	Total Other Municipal Bonds & Notes (cost–$14,724,144)		15,182,665
NEW YORK VARIABLE RATE NOTES (b)(c)(d)–10.5%
2,078	Liberty Dev. Corp. Rev., 12.153%, 10/1/35, Ser. 1251	Aa3/NR	3,192,099
2,173	New York City Transitional Finance Auth. Rev., 7.42%, 11/1/23, Ser. 362	Aa1/NR	2,337,914

18 PIMCO Municipal Income Funds Annual Report | 4.30.06

PIMCO New York Municipal Income Fund

Schedule of Investments

April 30, 2006 (continued)

Principal
Amount
(000)

Credit Rating
(Moody's/S&P)*

Value

New York Cntys. Tobacco Trust II Rev.,

$4,240

6.976%, 6/1/35

NR/NR

$4,419,055

6,780

7.214%, 6/1/43

NR/NR

7,052,827

Total New York Variable Rate Notes (cost–$16,915,269)

17,001,895

OTHER VARIABLE RATE NOTES–0.9%

Puerto Rico–0.9%

1,300

Public Finance Corp. Rev., 5.75%, 8/1/27, Ser. A (cost—$1,382,840)

Baa3/BBB–

1,394,952

U.S. TREASURY BILLS (f)–0.1%

250

4.49%-4.55%, 6/15/06 (cost–$248,590)

248,590

Total Investments (cost–$154,946,205)–100.0%

$161,591,743

Notes to Schedule of Investments:


*		Unaudited


(a)		Pre-refunded bonds are collateralized by U.S. Government or other eligible securities which are held in escrow and used to pay principal and interest and retire the bonds at the earliest refunding date (payment date) and/or whose interest rates vary with changes in a designated base rate (such as the prime interest rate).


(b)		144A Security – Security exempt from registration, under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, typically only to qualified institutional buyers. Unless otherwise indicated, these securities are not considered to be illiquid.


(c)		Residual Interest Municipal Bonds (‘‘RIBS’’)/Residual Interest Tax Exempt Bonds (‘‘RITES’’) – The interest rate shown bears an inverse relationship to the interest rate on another security or the value of an index.


(d)		Variable Rate Notes – Instruments whose interest rates change on specified date (such as a coupon date or interest payment date) and/or whose interest rates vary with changes in a designated base rate (such as the prime interest rate). The interest rate disclosed reflects the rate in effect on April 30, 2006.


(e)		Maturity date shown is date of next put.


(f)		All or partial amount segregated as collateral for futures contracts and/or options written.


(g)		Non-income producing.


(h)		Security in default.

Glossary:


	ACA – insured by American Capital Access Holding Ltd.


	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


	CR – Custodian Receipt


	FGIC – insured by Financial Guaranty Insurance Co.


	FHA – insured by Federal Housing Administration


	FSA – insured by Financial Security Assurance, Inc.


	GO – General Obligation Bond


	IBC – Insurance Bond Certificate


	MBIA – insured by Municipal Bond Investors Assurance


	NR – Not Rated


	PSF-GTD – Permanent School Fund Guaranteed


	Radian – insured by Radian Guaranty, Inc.


	TCRS – Temporary Custodian Receipts


	XLCA – insured by XL Capital Assurance

See accompanying Notes to Financial Statements | 4.30.06 | PIMCO Municipal Income Funds Annual Report 19

PIMCO Municipal Income Funds

Statements of Assets and Liabilities

April 30, 2006


	Municipal	California Municipal	New York Municipal
Assets:
Investments, at value (cost–$517,169,140, $380,076,247 and $154,946,205, respectively)	$546,291,677	$404,509,266	$161,591,743
Cash	2,376,181	720,223	—
Interest receivable	10,030,533	5,745,069	2,662,269
Receivable for investments sold	285,000	—	—
Receivable for variation margin on futures contracts	63,800	57,797	8,700
Prepaid expenses	25,489	23,184	20,749
Total Assets	559,072,680	411,055,539	164,283,461
Liabilities:
Dividends payable to common and preferred shareholders	2,088,467	1,460,809	552,709
Options written, at value (premiums received–$544,557, $139,915, and $0)	688,375	180,312	—
Accrued expenses	206,985	135,410	41,957
Investment management fees payable	205,789	151,584	60,506
Payable to custodian	—	—	256,711
Payable for variation margin on futures contracts	6,250	—	4,375
Total Liabilities	3,195,866	1,928,115	916,258
Preferred shares ($25,000 net asset and liquidation value per share applicable to an aggregate of 8,000, 6,000 and 2,520 shares issued and outstanding, respectively)	200,000,000	150,000,000	63,000,000
Net Assets Applicable to Common Shareholders	$355,876,814	$259,127,424	$100,367,203
Composition of Net Assets Applicable to Common Shareholders:
Common Stock (no par value): Paid-in-capital	$347,577,024	$254,071,197	$105,568,018
Undistributed (dividends in excess of) net investment income	6,967,363	3,392,769	(85,794)
Accumulated net realized loss	(27,309,517)	(22,145,273)	(11,870,772)
Net unrealized appreciation of investments, futures contracts and options written	28,641,944	23,808,731	6,755,751
Net Assets Applicable to Common Shareholders	$355,876,814	$259,127,424	$100,367,203
Common Shares Outstanding	24,473,102	17,900,557	7,452,004
Net Asset Value Per Common Share	$14.54	$14.48	$13.47

20 PIMCO Municipal Income Funds Annual Report | 4.30.06 | See accompanying Notes to Financial Statements

PIMCO Municipal Income Funds

Statements of Operations

For the year ended April 30, 2006


	Municipal	California Municipal	New York Municipal
Investment Income:
Interest	$30,336,028	$21,443,921	$8,309,782
Expenses:
Investment management fees	3,655,808	2,680,032	1,074,078
Auction agent fees and commissions	522,953	391,426	167,298
Custodian and accounting agent fees	193,313	127,190	63,134
Reports to shareholders	120,210	63,505	33,925
Audit and tax services	74,485	55,961	28,675
Transfer agent fees	35,784	35,086	33,850
Trustees' fees and expenses	31,340	22,061	6,475
New York Stock Exchange listing fees	20,895	20,610	20,680
Insurance expense	14,525	11,020	5,736
Legal fees	9,760	8,536	3,150
Investor relations	5,358	4,767	1,468
Miscellaneous	9,825	9,855	8,509
Total expenses	4,694,256	3,430,049	1,446,978
Less: investment management fees waived	(1,124,863)	(824,627)	(330,485)
custody credits earned on cash balances	(72,801)	(27,774)	(12,734)
Net expenses	3,496,592	2,577,648	1,103,759
Net Investment Income	26,839,436	18,866,273	7,206,023
Realized and Change in Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments	1,610,105	828,861	456,098
Futures contracts	(4,032,780)	(2,494,601)	(1,149,247)
Options written	2,020,474	1,282,283	515,254
Net change in unrealized appreciation/depreciation of: Investments	(7,139,724)	(1,877,388)	(2,386,926)
Futures contracts	1,208,225	561,297	655,838
Options written	1,221,374	775,184	185,961
Net realized and change in unrealized loss on investments, futures contracts and options written	(5,112,326)	(924,364)	(1,723,022)
Net Increase in Net Assets Resulting from Investment Operations	21,727,110	17,941,909	5,483,001
Dividends on Preferred Shares from Net Investment Income	(5,231,157)	(3,616,030)	(1,622,910)
Net Increase in Net Assets Applicable to Common Shareholders Resulting from Investment Operations	$16,495,953	$14,325,879	$3,860,091

See accompanying Notes to Financial Statements | 4.30.06 | PIMCO Municipal Income Funds Annual Report 21

PIMCO Municipal Income Funds

Statements of Changes in Net Assets
Applicable to Common Shareholders


	Municipal
	Year ended April 30, 2006	Year ended April 30, 2005
Investment Operations:
Net investment income	$26,839,436	$27,652,489
Net realized loss on investments, futures contracts and options written	(402,201)	(8,369,653)
Net change in unrealized appreciation/depreciation of investments, futures contracts and options written	(4,710,125)	24,934,751
Net increase in net assets resulting from investment operations	21,727,110	44,217,587
Dividends on Preferred Shares from Net investment income	(5,231,157)	(2,856,330)
Net increase in net assets applicable to common shareholders resulting from investment operations	16,495,953	41,361,257
Dividends on Common Shareholders from Net investment income	(23,781,657)	(23,656,743)
Capital Share Transactions:
Reinvestment of dividends	2,463,094	1,211,038
Total increase (decrease) in net assets applicable to common shareholders	(4,822,610)	18,915,552
Net Assets Applicable to Common Shareholders:
Beginning of year	360,699,424	341,783,872
End of year (including undistributed (dividends in excess of) net investment income of $6,967,363 and $9,140,741; $3,392,769 and $4,640,975; $(85,794) and $898,985; respectively)	$355,876,814	$360,699,424
Common Shares Issued in Reinvestment of Dividends:	162,728	83,880

22 PIMCO Municipal Income Funds Annual Report | 4.30.06 | See accompanying Notes to Financial Statements


California Municipal		New York Municipal
Year ended April 30, 2006	Year ended April 30, 2005	Year ended April 30, 2006	Year ended April 30, 2005

$18,866,273	$19,052,509	$7,206,023	$7,428,747
(383,457)	(4,591,905)	(177,895)	(3,609,336)
(540,907)	16,036,473	(1,545,127)	6,558,341
17,941,909	30,497,077	5,483,001	10,377,752
(3,616,030)	(1,919,248)	(1,622,910)	(892,314)
14,325,879	28,577,829	3,860,091	9,485,438
(16,498,449)	(16,457,576)	(6,567,905)	(6,632,392)

1,322,388	—	963,117	337,047
(850,182)	12,120,253	(1,744,697)	3,190,093

259,977,606	247,857,353	102,111,900	98,921,807
$259,127,424	$259,977,606	$100,367,203	$102,111,900
89,328	—	67,984	24,712

See accompanying Notes to Financial Statements | 4.30.06 | PIMCO Municipal Income Funds Annual Report 23

PIMCO Municipal Income Funds

Notes to Financial Statements

April 30, 2006

1. Organization and Significant Accounting Policies

PIMCO Municipal Income Fund (‘‘Municipal’’), PIMCO California Municipal Income Fund (‘‘California Municipal’’) and PIMCO New York Municipal Income Fund (‘‘New York Municipal’’), collectively referred to as the ‘‘Funds’’, were organized as Massachusetts business trusts on May 10, 2001. Prior to commencing operations on June 29, 2001, the Funds had no operations other than matters relating to their organization and registration as non-diversified, closed-end management investment companies registered under the Investment Company Act of 1940 and the rules and regulations thereunder, as amended. Allianz Global Investors Fund Management LLC (the ‘‘Investment Manager’’), serves as the investment manager and is an indirect, wholly-owned subsidiary of Allianz Global Investors of America L.P. (‘‘Allianz Global’’). Allianz Global is an indirect majority-owned subsidiary of Allianz AG. The Funds have an unlimited amount of no par value common stock authorized.

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

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

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

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

(a) Valuation of Investments

Portfolio securities and other financial instruments for which market quotations are readily available are stated at market value. Portfolio securities and other financial instruments for which market quotations are not readily available or if a development/event occurs that may significantly impact the value of a security may be fair-valued, in good faith, pursuant to guidelines established by the Board of Trustees. The Funds' investments are valued daily using prices supplied by an independent pricing service or dealer quotations, using the last sale price on the exchange that is the primary market for such securities, or the quoted mean price for those securities for which the over-the-counter market is the primary market or for listed securities in which there were no sales. The independent pricing service uses information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Exchange traded options and futures are valued at the settlement price determined by the relevant exchange. Short-term 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 61^st day prior to maturity, if the original term to maturity exceeded 60 days. The prices used by the Funds to value securities may differ from the value that would be realized if the securities were sold and the differences could be material to the financial statements. The Funds' net asset values are determined daily as of the close of regular trading (normally, 4:00 p.m. Eastern time) on the New York Stock Exchange (‘‘NYSE’’) on each day the NYSE is open for business.

(b) Investment Transactions and Investment Income

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

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.

24 PIMCO Municipal Income Funds Annual Report | 4.30.06

PIMCO Municipal Income Funds

Notes to Financial Statements

April 30, 2006

1. Organization and Significant Accounting Policies (continued)

(d) Dividends and Distributions — Common Stock

The Funds declare dividends from net investment income monthly to common shareholders. Distributions of net realized capital gains, if any, are paid at least annually. Each Fund records dividends and distributions to its shareholders on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from generally accepted accounting principles. These ‘‘book-tax’’ differences are considered either temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal income tax treatment; temporary differences do not require reclassification. For the year ended April 30, 2006, New York Municipal had a permanent difference attributable to non-deductible excise taxes. This adjustment was a decrease to dividends in excess of net investment income and a decrease to paid in capital of $13. Municipal and California Municipal had no permanent differences for the year ended April 30, 2006. To the extent dividends and/or distributions exceed current and accumulated earnings and profits for federal income tax purposes, they are reported as dividends and/or distributions of paid-in capital.

(e) Futures Contracts

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

(f) Option Transactions

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

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

(g) Residual Interest Municipal Bonds (‘‘RIBS’’)/Residual Interest Tax Exempt Bonds (‘‘RITES’’)

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

4.30.06 | PIMCO Municipal Income Funds Annual Report 25

PIMCO Municipal Income Funds

Notes to Financial Statements

April 30, 2006

(h) Custody Credits Earned on Cash Balances

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

2. Investment Manager/Sub-Adviser

Each Fund has entered into an Investment Management Agreement (the ‘‘Agreements’’) with the Investment Manager. Subject to the supervision by each Fund's Board of Trustees, the Investment Manager is responsible for managing, either directly or through others selected by it, the Fund's investment activities, business affairs and other administrative matters. Pursuant to the Agreements, the Investment Manager receives an annual fee, payable monthly, at the annual rate of 0.65% of each Fund's average daily net assets, inclusive of net assets attributable to any preferred shares that may be outstanding. In order to reduce each Fund's expenses, the Investment Manager has contractually agreed to waive a portion of its investment management fee for each Fund at the annual rate of 0.20% of each Fund's average daily net assets, including net assets attributable to any preferred shares that may be outstanding, from the commencement of operations through June 30, 2006, and for a declining amount thereafter through June 30, 2009.

The Investment Manager has retained its affiliate, Pacific Investment Management Company LLC (the ‘‘Sub-Adviser’’) to manage each Fund's investments. Subject to the supervision of the Investment Manager, the Sub-Adviser makes all investment decisions for the Funds. The Investment Manager, not the Funds, pays a portion of the fees it receives to the Sub-Adviser in return for its services, at the maximum annual rate of 0.37% of each Funds average daily net assets, inclusive of net assets attributable to any preferred shares that may be outstanding. The Sub-Adviser has contractually agreed to waive a portion of the fees it is entitled to receive from the Investment Manager, such that the Sub-Adviser will receive 0.25% of each Fund's average daily net assets, including net assets attributable to any preferred shares that may be outstanding, from the commencement of the Funds' operations through June 30, 2006, and will receive an increasing amount not to exceed 0.37% of each Fund's average daily net assets, including net assets attributable to any preferred shares that may be outstanding thereafter through June 30, 2009.

3. Investments in Securities

For the year ended April 30, 2006, purchases and sales of investments, other than short-term securities, were:


	Municipal	California Municipal	New York Municipal
Purchases	$71,283,082	$35,923,439	$43,166,155
Sales	82,230,056	33,115,103	38,725,354

(a) Futures contracts outstanding at April 30, 2006:


Fund	Type	Notional Amount (000)	Expiration Date	Unrealized Appreciation (Depreciation)
Municipal	Long: Euro 90 day Futures	$440	6/18/07	$(87,625)
	Euro 90 day Futures	440	9/17/07	(90,000)
	Euro 90 day Futures	440	12/17/07	(96,600)
	Euro 90 day Futures	440	3/17/08	(98,800)
	Short: U.S. Treasury Bond Futures	(40)	6/21/06	36,250
				$(336,775)
California Municipal	Long: Euro 90 day Futures	$213	6/18/07	$(61,075)
	Euro 90 day Futures	213	9/17/07	(63,038)
	Euro 90 day Futures	213	12/17/07	(66,225)
	Euro 90 day Futures	213	3/17/08	(67,287)
	U.S. Treasury Notes 10 yr. Futures	157	6/21/06	(326,266)
				$(583,891)
New York Municipal	Long: Euro 90 day Futures	$60	6/18/07	$(11,400)
	Euro 90 day Futures	60	9/17/07	(11,700)
	Euro 90 day Futures	60	12/17/07	(12,600)
	Euro 90 day Futures	60	3/17/08	(12,900)
	Short: U.S. Treasury Bond Futures	(28)	6/21/06	158,813
				$110,213

26 PIMCO Municipal Income Funds Annual Report | 4.30.06

PIMCO Municipal Income Funds

Notes to Financial Statements

April 30, 2006

3. Investments in Securities (continued)

(b) Transactions in options written for the year ended April 30, 2006:


	Contracts	Premiums
Municipal
Options outstanding, April 30, 2005	2,580	$2,313,121
Options written	11,183	5,037,198
Options expired	(5,269)	(2,348,318)
Options terminated in closing purchase transactions	(6,353)	(4,457,444)
Options outstanding, April 30, 2006	2,141	$544,557

California Municipal
Options outstanding, April 30, 2005	1,779	$1,566,403
Options written	5,767	2,952,455
Options expired	(3,373)	(1,753,282)
Options terminated in closing purchase transactions	(3,618)	(2,625,661)
Options outstanding, April 30, 2006	555	$139,915

New York Municipal
Options outstanding, April 30, 2005	713	$644,445
Options written	1,330	972,381
Options expired	(747)	(568,305)
Options terminated in closing purchase transactions	(1,296)	(1,048,521)
Options outstanding, April 30, 2006	—	$—

4. Income Tax Information

Municipal

The tax character of dividends paid was:


	Year ended April 30, 2006	Year ended April 30, 2005
Ordinary Income	$571,911	$562,263
Tax Exempt Income	$28,440,903	$25,950,810

At April 30, 2006, the tax character of distributable earnings of $6,967,363 was comprised entirely of tax exempt income.

At April 30, 2006, Municipal had a capital loss carryforward of $27,790,110 ($12,636,580 of which will expire in 2011, $1,890,888 of which will expire in 2012, $12,156,912 of which will expire in 2013 and $1,105,730 of which will expire in 2014), available as a reduction, to the extent provided in the regulations, of any future net realized capital gains. To the extent that these losses are used to offset future realized capital gains, such gains will not be distributed.

California Municipal:

The tax character of dividends paid was:


	Year ended April 30, 2006	Year ended April 30, 2005
Ordinary Income	$534,905	$409,162
Tax Exempt Income	$19,579,574	$17,967,662

At April 30, 2006, the tax basis of distributable earnings of $3,392,769 was comprised entirely of tax exempt income.

4.30.06 | PIMCO Municipal Income Funds Annual Report 27

PIMCO Municipal Income Funds

Notes to Financial Statements

April 30, 2006

4. Income Tax Information (continued)

At April 30, 2006, California Municipal had a capital loss carryforward of $22,769,560 ($2,250 of which will expire in 2010, $9,872,564 of which will expire in 2011, $4,391,323 of which will expire in 2012, $6,552,094 of which will expire in 2013 and $1,951,329 of which will expire in 2014), available as a reduction, to the extent provided in the regulations, of any future net realized capital gains. To the extent that these losses are used to offset future realized capital gains, such gains will not be distributed.

New York Municipal:

The tax character of dividends paid was:


	Year ended April 30, 2006	Year ended April 30, 2005
Ordinary Income	$72,767	$56,171
Tax Exempt Income	$8,118,048	$7,468,535

At April 30, 2006, there were no distributable earnings.

At April 30, 2006, New York Municipal had a capital loss carryforward of $11,760,541 ($4,214,928 of which will expire in 2011, $2,679,047 of which will expire in 2012, $4,622,781 of which will expire in 2013 and $243,785 of which will expire in 2014), available as a reduction, to the extent provided in the regulations, of any future net realized capital gains. To the extent that these losses are used to offset future realized capital gains, such gains will not be distributed.

The cost of investments for federal income tax purposes and gross unrealized appreciation and gross unrealized depreciation of investments at April 30, 2006 were:


	Cost of Investments	Gross Unrealized Appreciation	Gross Unrealized Depreciation	Net Unrealized Appreciation
Municipal	$517,169,140	$33,690,448	$4,567,911	$29,122,537
California Municipal	380,076,247	24,834,410	401,391	24,433,019
New York Municipal	154,946,224	7,126,275	480,756	6,645,519

The difference between book and tax basis unrealized appreciation/depreciation, if any, is attributable to wash sales.

5. Auction Preferred Shares

Municipal has issued 1,600 shares of Preferred Shares Series A, 1,600 shares of Preferred Shares Series B, 1,600 shares of Preferred Shares Series C, 1,600 shares of Preferred Shares Series D and 1,600 shares of Preferred Shares Series E, each with a net asset and liquidation value of $25,000 per share plus accrued dividends.

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

New York Municipal has issued 2,520 shares of Preferred Shares Series A with a net asset and liquidation value of $25,000 per share plus accrued dividends.

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

28 PIMCO Municipal Income Funds Annual Report | 4.30.06

PIMCO Municipal Income Funds

Notes to Financial Statements

April 30, 2006

5. Auction Preferred Shares (continued)

For the year ended April 30, 2006, the annualized dividend rates ranged from:


	High	Low	At April 30, 2006
Municipal:
Series A	4.350%	1.880%	3.650%
Series B	4.400%	0.700%	3.600%
Series C	4.450%	1.500%	3.700%
Series D	4.450%	1.800%	3.750%
Series E	4.350%	1.600%	3.600%
California Municipal:
Series A	4.350%	1.000%	3.550%
Series B	4.450%	1.590%	3.600%
Series C	4.350%	1.450%	3.500%
New York Municipal:
Series A	4.400%	1.850%	3.600%

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

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

6. Subsequent Common Dividend Declarations

On May 1, 2006, the following dividends were declared to common shareholders payable June 1, 2006 to shareholders of record on May 11, 2006:

On June 1, 2006 the following dividends were declared to common shareholders payable July 3, 2006 to shareholders of record on June 12, 2006:

7. Legal Proceedings

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

4.30.06 | PIMCO Municipal Income Funds Annual Report 29

PIMCO Municipal Income Funds

Notes to Financial Statements

April 30, 2006

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,’’ and ‘‘revenue sharing/shelf space/directed brokerage,’’ which allege the same or similar conduct underlying the regulatory settlements discussed above. The market timing lawsuits have been consolidated in a Multi-District Litigation in the United States District Court for the District of Maryland, and the revenue sharing/shelf space/directed brokerage lawsuits have been consolidated in the United States District Court for the District of Connecticut. Any potential resolution of these matters may include, but not be limited to, judgments or settlements for damages against the Investment Manager or its affiliates or related injunctions. The Investment Manager believes that other similar lawsuits may be filed in federal or state courts in the future.

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

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

The foregoing speaks only as of the date hereof.

30 PIMCO Municipal Income Funds Annual Report | 4.30.06

PIMCO Municipal Income Fund

Financial Highlights

For a share of common stock outstanding throughout each period:


	Year ended												For the period June 29, 2001* through April 30, 2002
	April 30, 2006			April 30, 2005			April 30, 2004			April 30, 2003			For the period June 29, 2001* through April 30, 2002
Net asset value, beginning of period		$14.84			$14.11			$14.03			$14.22			$14.33	**
Investment Operations:
Net investment income		1.10			1.15			1.16			1.19			0.91
Net realized and change in unrealized gain (loss) on investments, futures contracts, and options written		(0.21	)		0.68			(0.03	)		(0.26	)		(0.07	)
Total from investment operations		0.89			1.83			1.13			0.93			0.84
Dividends and Distributions on Preferred Shares from:
Net investment income		(0.21	)		(0.12	)		(0.07	)		(0.10	)		(0.09	)
Net realized gains		—			—			—			(0.00	)†		(0.00	)†
Total dividends and distributions onpreferred shares		(0.21	)		(0.12	)		(0.07	)		(0.10	)		(0.09	)
Net increase in net assets applicable to common shareholders resulting from investment operations		0.68			1.71			1.06			0.83			0.75
Dividends and Distributions to Common Shareholders from:
Net investment income		(0.98	)		(0.98	)		(0.98	)		(0.98	)		(0.71	)
Net realized gains		—			—			—			(0.04	)		(0.02	)
Total dividends and distributions to common shareholders		(0.98	)		(0.98	)		(0.98	)		(1.02	)		(0.73	)
Capital Share Transactions:
Common stock offering costs charged to paid-in capital		—			—			—			—			(0.03	)
Preferred shares offering costs/ underwriting discounts charged to paid-in capital		—			—			—			—			(0.10	)
Total capital share transactions		—			—			—			—			(0.13	)
Net asset value, end of period		$14.54			$14.84			$14.11			$14.03			$14.22
Market price, end of period		$16.22			$14.64			$13.55			$14.22			$14.70
Total Investment Return (1)		18.13	%		15.68	%		2.15	%		3.79	%		3.10	%
RATIOS/SUPPLEMENTAL DATA:
Net assets applicable to common shareholders, end of period (000)		$355,877			$360,699			$341,784			$337,688			$338,703
Ratio of expenses to average net assets (2)(3)(5)		0.98	%		0.97	%		0.98	%		1.00	%		0.91	%(4)
Ratio of net investment income to average net assets (2)(5)		7.41	%		7.97	%		8.22	%		8.21	%		7.64	%(4)
Preferred shares asset coverage per share		$69,462			$70,077			$67,719			$67,206			$67,332
Portfolio turnover		13	%		11	%		16	%		27	%		39	%


*		Commencement of operations.


**		Initial public offering price of $15.00 per share less underwriting discount of $0.675 per share.


†		Less than $0.005 per share.


(1)		Total investment return is calculated assuming a purchase of a share of common stock at the current market price on the first day of each period and a sale of a share of common stock at the current market price on the last day of each period reported. Dividends and distributions are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Fund's dividend reinvestment plan. Total investment return does not reflect brokerage commissions or sales charges. Total investment return for a period of less than one year is not annualized.


(2)		Calculated on the basis of income and expenses applicable to both common and preferred shares relative to the average net assets of common shareholders.


(3)		Inclusive of expenses offset by custody credits earned on cash balances at the custodian bank. (See note 1(h) in Notes to Financial Statements).


(4)		Annualized.


(5)		During the periods indicated above, the Investment Manager waived a portion of its investment management fee. If such a waiver had not been in effect, the ratio of expenses to average net assets and the ratio of net investment income to average net assets would have been 1.30% and 7.09%, respectively, for the year ended April 30, 2006, 1.28% and 7.66%, respectively, for the year ended April 30, 2005, 1.30% and 7.91%, respectively, for the year ended April 30, 2004, 1.32% and 7.89%, respectively for the year ended April 30, 2003, and 1.21% (annualized) and 7.34% (annualized), respectively, for the period June 29, 2001 (commencement of operations) through April 30, 2002.

See accompanying Notes to Financial Statements | 4.30.06 | PIMCO Municipal Income Funds Annual Report 31

PIMCO California Municipal Income Fund

Financial Highlights

For a share of common stock outstanding throughout each period:


	Year Ended												For the period June 29, 2001* through April 30, 2002
	April 30, 2006			April 30, 2005			April 30, 2004			April 30, 2003			For the period June 29, 2001* through April 30, 2002
Net asset value, beginning of period		$14.60			$13.92			$14.17			$14.00			$14.33	**
Investment Operations:
Net investment income		1.05			1.07			1.05			1.12			0.83
Net realized and change in unrealized gain (loss) on investments, futures contracts, and options written		(0.05	)		0.64			(0.31	)		0.07			(0.25	)
Total from investment operations		1.00			1.71			0.74			1.19			0.58
Dividends and Distributions on Preferred Shares from Net Investment Income:		(0.20	)		(0.11	)		(0.07	)		(0.10	)		(0.09	)
Net increase in net assets applicable to common shareholders resulting from investment operations		0.80			1.60			0.67			1.09			0.49
Dividends and Distributions to Common Shareholders from Net Investment Income:		(0.92	)		(0.92	)		(0.92	)		(0.92	)		(0.68	)
Capital Share Transactions:
Common stock offering costs charged to paid-in capital		—			—			—			—			(0.03	)
Preferred shares offering costs/underwriting discounts charged to paid-in capital		—			—			—			—			(0.11	)
Total capital share transactions		—			—			—			—			(0.14	)
Net asset value, end of period		$14.48			$14.60			$13.92			$14.17			$14.00
Market price, end of period		$15.87			$14.20			$13.19			$14.15			$14.71
Total Investment Return (1)		18.93	%		15.05	%		(0.28	)%		2.64	%		2.82	%
RATIOS/SUPPLEMENTAL DATA:
Net assets applicable to common shareholders, end of period (000)		$259,127			$259,978			$247,857			$251,831			$246,682
Ratio of expenses to average net assets (2)(3)(5)		0.99	%		1.00	%		1.01	%		1.03	%		0.94	%(4)
Ratio of net investment income to average net assets (2)(5)		7.19	%		7.56	%		7.53	%		7.89	%		7.03	%(4)
Preferred shares asset coverage per share		$68,164			$68,319			$66,306			$66,967			$66,109
Portfolio turnover		8	%		5	%		25	%		15	%		45	%


*		Commencement of operations.


**		Initial public offering price of $15.00 per share less underwriting discount of $0.675 per share.


(1)		Total investment return is calculated assuming a purchase of a share of common stock at the current market price on the first day of each period and a sale of a share of common stock at the current market price on the last day of each period reported. Dividends and distributions are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Fund's dividend reinvestment plan. Total investment return does not reflect brokerage commissions or sales charges. Total investment return for a period of less than one year is not annualized.


(2)	Calculated on the basis of income and expenses applicable to both common and preferred shares relative to the average net assets of common shareholders.


(3)		Inclusive of expenses offset by custody credits earned on cash balances at the custodian bank. (See note 1(h) in Notes to Financial Statements).


(4)		Annualized.


(5)		During the periods indicated above, the Investment Manager waived a portion of its investment management fee. If such a waiver had not been in effect, the ratio of expenses to average net assets and the ratio of net investment income to average net assets would have been 1.31% and 6.87%, respectively, for the year ended April 30, 2006, 1.31% and 7.25%, respectively, for the year ended April 30, 2005, 1.33% and 7.21%, respectively, for the year ended April 30, 2004, 1.34% and 7.58%, respectively for the year ended April 30, 2003, and 1.24% (annualized) and 6.73% (annualized), respectively, for the period June 29, 2001 (commencement of operations) through April 30, 2002.

32 PIMCO Municipal Income Funds Annual Report | 4.30.06 | See accompanying Notes to Financial Statements

PIMCO New York Municipal Income Fund

Financial Highlights

For a share of common stock outstanding throughout each period:


	Year Ended												For the period June 29, 2001* through April 30, 2002
	April 30, 2006			April 30, 2005			April 30, 2004			April 30, 2003			For the period June 29, 2001* through April 30, 2002
Net asset value, beginning of period		$13.83			$13.44			$13.49			$13.92			$14.33	**
Investment Operations:
Net investment income		0.98			1.01			1.00			1.04			0.82
Net realized and change in unrealized gain (loss) on investments, futures contracts, and options written		(0.23	)		0.40			(0.08	)		(0.47	)		(0.26	)
Total from investment operations		0.75			1.41			0.92			0.57			0.56
Dividends and Distributions on Preferred Shares from:
Net investment income		(0.22	)		(0.12	)		(0.07	)		(0.10	)		(0.09	)
Net realized gains		—			—			—			—			(0.01	)
Total dividends and distributions on preferred shares		(0.22	)		(0.12	)		(0.07	)		(0.10	)		(0.10	)
Net increase in net assets applicable to common shareholders resulting from investment operations		0.53			1.29			0.85			0.47			0.46
Dividends and Distributions to Common Shareholders from:
Net investment income		(0.89	)		(0.90	)		(0.90	)		(0.90	)		(0.67	)
Net realized gains		—			—			—			—			(0.05	)
Total dividends and distributions to common shareholders		(0.89	)		(0.90	)		(0.90	)		(0.90	)		(0.72	)
Capital Share Transactions:
Common stock offering costs charged to paid-in capital		—			—			—			—			(0.03	)
Preferred shares offering costs/underwriting discounts charged to paid-in capital		—			—			—			—			(0.12	)
Total capital share transactions		—			—			—			—			(0.15	)
Net asset value, end of period		$13.47			$13.83			$13.44			$13.49			$13.92
Market price, end of period		$14.56			$13.90			$12.70			$13.55			$14.20
Total Investment Return (1)		11.45	%		17.04	%		0.21	%		1.82	%		(0.34	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets applicable to common shareholders, end of period (000)		$100,367			$102,112			$98,922			$98,323			$100,413
Ratio of expenses to average net assets (2)(3)(5)		1.09	%		1.12	%		1.10	%		1.13	%		1.04	%(4)
Ratio of net investment income to average net assets (2)(5)		7.05	%		7.48	%		7.41	%		7.46	%		7.07	%(4)
Preferred shares asset coverage per share		$64,809			$65,509			$64,251			$64,016			$64,834
Portfolio turnover		24	%		10	%		39	%		23	%		51	%


*		Commencement of operations.


**		Initial public offering price of $15.00 per share less underwriting discount of $0.675 per share.


(1)		Total investment return is calculated assuming a purchase of a share of common stock at the current market price on the first day of each period and a sale of a share of common stock at the current market price on the last day of each period reported. Dividends and distributions are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Fund's dividend reinvestment plan. Total investment return does not reflect brokerage commissions or sales charges. Total investment return for a period of less than one year is not annualized.


(2)		Calculated on the basis of income and expenses applicable to both common and preferred shares relative to the average net assets of common shareholders.


(3)		Inclusive of expenses offset by custody credits earned on cash balances at the custodian bank. (See note 1(h) in Notes to Financial Statements).


(4)		Annualized.


(5)		During the periods indicated above, the Investment Manager waived a portion of its investment management fee. If such a waiver had not been in effect, the ratio of expenses to average net assets and the ratio of net investment income to average net assets would have been 1.42% and 6.72%, respectively, for the year ended April 30, 2006, 1.45% and 7.15%, respectively, for the year ended April 30, 2005, 1.43% and 7.08%, respectively, for the year ended April 30, 2004, 1.45% and 7.14%, respectively for the year ended April 30, 2003, and 1.34% (annualized) and 6.77% (annualized), respectively, for the period June 29, 2001 (commencement of operations) through April 30, 2002.

See accompanying Notes to Financial Statements | 4.30.06 | PIMCO Municipal Income Funds Annual Report 33

PIMCO Municipal Income Funds

Report of Independent Registered
Public Accounting Firm

To the Shareholders and the Board of Trustees of
PIMCO Municipal Income Fund,
PIMCO California Municipal Income Fund and
PIMCO New York Municipal Income Fund

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets applicable to common shareholders and the financial highlights present fairly, in all material respects, the financial position of PIMCO Municipal Income Fund, PIMCO California Municipal Income Fund and PIMCO New York Municipal Income Fund (collectively hereafter referred to as the ‘‘Funds’’) at April 30, 2006, the results of each of their operations for the year ended, the changes in each of their net assets applicable to common shareholders for each of the two years in the period then ended and the financial highlights for each of the four years in the period then ended and for the period June 29, 2001 (commencement of operations) through April 30, 2002, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as ‘‘financial statements’’) are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at April 30, 2006 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
New York, New York
June 21, 2006

34 PIMCO Municipal Income Funds Annual Report | 4.30.06

PIMCO Municipal Income Funds

Tax Information/Annual Shareholder Meetings
Results (unaudited)

Tax Information:

Subchapter M of the Internal Revenue Code of 1986, as amended, requires the Funds to advise shareholders within 60 days of the Funds' tax year-end (April 30, 2006) as to the federal tax status of dividends and distributions received by shareholders during such tax period. Accordingly, please note that substantially all dividends paid from net investment income from the Funds during the tax period ended April 30, 2006 were federally exempt interest dividends. However the Funds invested in municipal bonds containing market discount, whose accretion is taxable. Accordingly, the percentage of dividends paid from net investment income during the tax period which are taxable were:

Since the Funds' tax year is not the calendar year, another notification will be sent with respect to calendar year 2006. In January 2007, shareholders will be advised on IRS Form 1099 DIV as to the federal tax status of the dividends and distributions received during calendar 2006. The amount that will be reported will be the amount to use on your 2006 federal income tax return and may differ from the amount which must be reported in connection with each Fund's tax year ended April 30, 2006. Shareholders are advised to consult their tax advisers as to the federal, state and local tax status of the dividend income received from the Funds. In January 2007, an allocation of interest income by state will be provided which may be of value in reducing a shareholder's state and local tax liability, if any.

Annual Shareholder Meetings Results:

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

The resulting vote count is indicated below:


	Affirmative	Withheld Authority
Municipal
Re-election of David C. Flattum	22,109,952	182,766
Re-election of R. Peter Sullivan III	22,099,112	193,606
California Municipal
Re-election of David C. Flattum	16,200,397	125,208
Re-election of R. Peter Sullivan III	16,203,270	122,335
New York Municipal
Re-election of David C. Flattum	6,559,878	89,023
Re-election of R. Peter Sullivan III	6,561,884	87,017

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


	* Preferred Shares Trustee

4.30.06 | PIMCO Municipal Income Funds Annual Report 35

PIMCO Municipal Income Funds

Our Commitment to You

We consider customer privacy to be a fundamental aspect of our relationship with clients. We are committed to maintaining the confidentiality, integrity, and security of our current, prospective and former clients' personal information. We have developed policies designed to protect this confidentiality, while allowing client needs to be served.

Obtaining Personal Information

In the course of providing you with products and services, we may obtain non-public personal information about you. This information may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from your transactions, from your brokerage or financial advisory firm, financial adviser or consultant, and/or from information captured on our internet web sites.

Respecting Your Privacy

We do not disclose any personal or account information provided by you or gathered by us to non-affiliated third parties, except as required or permitted by law. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on client satisfaction, and gathering shareholder proxies. We may also retain non-affiliated companies to market our products and enter in joint marketing agreements with other companies. These companies may have access to your personal and account information, but are permitted to use the information solely to provide the specific service or as otherwise permitted by law. We may also provide your personal and account information to your brokerage or financial advisory firm and/or to your financial adviser or consultant.

Sharing Information with Third Parties

We do reserve the right to disclose or report personal information to non-affiliated third parties in limited circumstances where we believe in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to protect our rights or property, or upon reasonable request by any mutual fund in which you have chosen to invest. In addition, the fund may disclose information about a shareholder's accounts to a non-affiliated third party with the consent or upon the request of the shareholder.

Sharing Information with Affiliates

We may share client information with our affiliates in connection with servicing your account or to provide you with information about products and services that we believe may be of interest to you. The information we share may include, for example, your participation in our mutual funds or other investment programs, your ownership of certain types of accounts (such as IRAs), or other data about your accounts. Our affiliates, in turn, are not permitted to share your information with non-affiliated entities, except as required or permitted by law.

Procedures to Safeguard Private Information

The Funds take seriously the obligation to safeguard shareholder non-public personal information. In addition to this policy, the Funds have also implemented procedures that are designed to restrict access to a shareholder's non-public personal information only to internal personnel who need to know that information in order to provide products or services to such shareholders. In order to guard a shareholder's non-public personal information, physical, electronic and procedural safeguards are in place.

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 twelve months ended June 30, 2005 is available (i) without charge, upon request, by calling the Funds' shareholder servicing agent at (800) 331-1710; (ii) on the Funds' website at www.allianzinvestors.com/closedendfunds; and (iii) on the Securities and Exchange Commission's website at www. sec.gov.

36 PIMCO Municipal Income Funds Annual Report | 4.30.06

PIMCO Municipal Income Funds

Dividend Reinvestment Plan (unaudited)

Pursuant to the Funds' Dividend Reinvestment Plan (the ‘‘Plan’’), all Common Shareholders whose shares are registered in their own names will have all dividends, including any capital gain dividends, reinvested automatically in additional Common Shares by PFPC Inc., as agent for the Common Shareholders (the ‘‘Plan Agent’’), unless the shareholder elects to receive cash. An election to receive cash may be revoked or reinstated at the option of the shareholder. In the case of record shareholders such as banks, brokers or other nominees that hold Common Shares for others who are the beneficial owners, the Plan Agent will administer the Plan on the basis of the number of Common Shares certified from time to time by the record shareholder as representing the total amount registered in such shareholder's name and held for the account of beneficial owners who are to participate in the Plan. Shareholders whose shares are held in the name of a bank, broker or nominee should contact the bank, broker or nominee for details. All distributions to investors who elect not to participate in the Plan (or whose broker or nominee elects not to participate on the investor's behalf), will be paid cash by check mailed, in the case of direct shareholder, to the record holder by PFPC Inc., as the Funds' dividend disbursement agent.

Unless you (or your broker or nominee) elects not to participate in the Plan, the number of Common Shares you will receive will be determined as follows:

(1)

If on the payment date the net asset value of the Common Shares is equal to or less than the market price per Common Share plus estimated brokerage commissions that would be incurred upon the purchase of Common Shares on the open market, the Fund will issue new shares at the greater of (i) the net asset value per Common Share on the payment date or (ii) 95% of the market price per Common Share on the payment date; or

(2)

If on the payment date the net asset value of the Common Shares is greater than the market price per Common Share plus estimated brokerage commissions that would be incurred upon the purchase of Common Shares on the open market, the Plan Agent will receive the dividend or distribution in cash and will purchase Common Shares in the open market, on the New York Stock Exchange or elsewhere, for the participants' accounts. It is possible that the market price for the Common Shares may increase before the Plan Agent has completed its purchases. Therefore, the average purchase price per share paid by the Plan Agent may exceed the market price on the payment date, resulting in the purchase of fewer shares than if the dividend or distribution had been paid in Common Shares issued by the Fund. The Plan Agent will use all dividends and distributions received in cash to purchase Common Shares in the open market on or shortly after the payment date, but in no event later than the ex-dividend date for the next distribution. Interest will not be paid on any uninvested cash payments.

You may withdraw from the Plan at any time by giving notice to the Plan Agent. If you withdraw or the Plan is terminated, you will receive a certificate for each whole share in your account under the Plan and you will receive a cash payment for any fraction of a share in your account. If you wish, the Plan Agent will sell your shares and send you the proceeds, minus brokerage commissions.

The Plan Agent maintains all shareholders' accounts in the Plan and gives written confirmation of all transactions in the accounts, including information you may need for tax records. The Plan Agent will also furnish each person who buys Common Shares with written instructions detailing the procedures for electing not to participate in the Plan and to instead receive distributions in cash. Common Shares in your account will be held by the Plan Agent in non-certificated form. Any proxy you receive will include all Common Shares you have received under the Plan.

There is no brokerage charge for reinvestment of your dividends or distributions in Common Shares. However, all participants will pay a pro rata share of brokerage commissions incurred by the Plan Agent when it makes open market purchases.

Automatically reinvested dividends and distributions are taxed in the same manner as cash dividends and distributions.

The Fund and the Plan Agent reserve the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan; however, the Fund reserves the right to amend the Plan to include a service charge payable by the participants. Additional information about the Plan may be obtained from the Funds' shareholder servicing agent, PFPC Inc., P.O. Box 43027, Providence, RI 02940-3027, telephone number (800) 331-1710.

4.30.06 | PIMCO Municipal Income Funds Annual Report 37

PIMCO Municipal Income Funds

Board of Trustees (unaudited)


Name, Date of Birth, Position(s) Held with Funds, Length of Service, Other Trusteeships/Directorships Held by Trustee; Number of Portfolios in Fund Complex/Outside Fund Complexes Currently Overseen by Trustee				Principal Occupation(s) During Past 5 Years:
The address of each trustee is 1345 Avenue of the Americas, New York, NY 10105
Robert E. Connor Date of Birth: 9/17/34 Chairman of the Board of Trustees since: 2004 Trustee since: 2001 Term of office: Expected to stand for re-election at 2006 annual meeting of shareholders. Trustee/Director of 24 funds in Fund Complex Trustee/Director of no funds outside of Fund Complex				Retired; Formerly, Senior Vice President, Corporate Office, Smith Barney Inc.
Paul Belica Date of Birth: 9/27/21 Trustee since: 2001 Term of office: Expected to stand for re-election at 2007 annual meeting of shareholders. Trustee/Director of 24 funds in Fund Complex Trustee/Director of no funds outside of Fund Complex				Retired. Formerly Director, Student Loan Finance Corp., Education Loans, Inc., Goal Funding, Inc., Goal Funding II, Inc. and Surety Loan Fund, Inc.; Formerly, Manager of Stratigos Fund LLC, Whistler Fund LLC, Xanthus Fund LLC & Wynstone Fund LLC; and Formerly, senior executive and member of the Board of Smith Barney, Harris Upham & Co.
John J. Dalessandro II Date of Birth: 7/26/37 Trustee since: 2001 Term of office: Expected to stand for re-election at 2007 annual meeting of shareholders. Trustee/Director of 24 funds in Fund Complex Trustee/Director of no funds outside of Fund complex				Retired. Formerly, President and Director, J.J. Dalessandro II Ltd., registered broker-dealer and member of the New York Stock Exchange.
David C. Flattum^† Date of Birth: 8/27/64 Trustee since: 2004 Term of office: Expected to stand for election at 2008 annual meeting of shareholders. Trustee/Director of 55 funds in Fund Complex Trustee/Director of no funds outside of Fund Complex				Managing Director, Chief Operating Officer, General Counsel and member of Management Board, Allianz Global Investors of America L.P.; Member of Management Board, Allianz Global Investors Fund Management LLC; Formerly, Head of Corporate Functions of Allianz Global Investors of America L.P.; Formerly, Partner, Latham & Watkins LLP (1998-2001).
Hans W. Kertess Date of Birth: 7/12/39 Trustee since: 2001 Term of office: Expected to stand for re-election at 2006 annual meeting of shareholders. Trustee/Director of 24 Funds in Fund Complex; Trustee/Director of no funds outside of Fund Complex				President, H. Kertess & Co. L.P.; Formerly, Managing Director, Royal Bank of Canada Capital Markets.
R. Peter Sullivan III Date of Birth: 9/4/41 Trustee since: 2002 Term of office: Expected to stand for re-election at 2008 annual meeting of shareholders. Trustee/Director of 22 funds in Fund Complex Trustee/Director of no funds outside of Fund Complex				Retired. Formerly, Managing Partner, Bear Wagner Specialists LLC, specialist firm on the New York Stock Exchange

†

Mr. Flattum is an ‘‘interested person’’ of the Fund due to his affiliation with Allianz Global Investors of America L.P. (‘‘AGI’’) and the Investment Manager. In addition to Mr. Flattum's positions with affiliated persons of the Funds set forth in the table above, he holds the following positions with affiliated person: Managing Director, Chief Operating Officer, General Counsel & member of Management Board, AGI; Member of Management Board AGIFM; Director, PIMCO Global Advisors (Resources) Limited; Managing Director, Allianz Dresdner Asset Management U.S. Equities LLC, Allianz Hedge Fund Partners Holdings L.P., Allianz PacLife Partners LLC, PA Holdings LLC; Director and Chief Executive Officer, Oppenheimer Group, Inc.


	Further information about Funds' Trustees is available in the Funds' Statement of Additional Information, dated August 20, 2001, which can be obtained upon request, without charge, by calling the Funds' shareholder servicing agent at (800) 331-1710.

38 PIMCO Municipal Income Funds Annual Report | 4.30.06

PIMCO Municipal Income Funds

Principal Officers (unaudited)


Name, Date of Birth, Position(s) Held with Funds				Principal Occupation(s) During Past 5 Years:
Brian S. Shlissel Date of Birth: 11/14/64 President & Chief Executive Officer since: 2002				Executive Vice President, Allianz Global Investors Fund Management LLC; President and Chief Executive Officer of 32 funds in the Fund Complex; Treasurer; Principal Financial and Accounting Officer of 33 funds in the Fund Complex; Trustee of 8 funds in the Fund Complex.
Lawrence G. Altadonna Date of Birth: 3/10/66 Treasurer, Principal/Financial and Accounting Officer since: 2002				Senior Vice President, Allianz Global Investors Fund Management LLC; Treasurer, Principal Financial and Accounting officer of 32 funds in the Fund Complex; Assistant Treasurer of 33 funds in the Fund Complex.
Thomas J. Fuccillo Date of Birth: 3/22/68 Secretary & Chief Legal Officer since: 2004				Senior Vice President, Senior Counsel, Allianz Global Investors of America L.P., Secretary and Chief Legal Officer of 32 funds in the Fund Complex. Formerly, Vice President and Associate General Counsel, Neuberger Berman LLC (1991-2004).
Youse Guia Date of Birth: 9/3/72 Chief Compliance Officer since: 2004				Senior Vice President, Group Compliance Manager, Allianz Global Investors of America L.P., Chief Compliance Officer of 65 funds in the Fund Complex. Formerly, Vice President, Group Compliance Manager, Allianz Global Investors of America L.P. (2002-2004), Audit Manager, PricewaterhouseCoopers LLP (1996-2002).

Officers hold office at the pleasure of the Board and until their successors are appointed and qualified or until their earlier resignation or removal.

4.30.06 | PIMCO Municipal Income Funds Annual Report 39

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40 PIMCO Municipal Income Funds Annual Report | 4.30.06

Trustees and Principal Officers

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

Investment Manager

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

Sub-Adviser

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

Custodian & Accounting Agent

State Street Bank & Trust Co.
225 Franklin Street
Boston, MA 02110

Transfer Agent, Dividend Paying Agent and Registrar

PFPC Inc.
P.O. Box 43027
Providence, RI 02940-3027

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP
300 Madison Avenue
New York, NY 10017

Legal Counsel

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

This report, including the financial information herein, is transmitted to the shareholders of PIMCO Municipal Income Fund, PIMCO California Municipal Income Fund and PIMCO New York Municipal Income Fund 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.

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

The Funds file their complete schedules of portfolio holdings with the Securities and Exchange Commission (the ‘‘Commission’’) for the first and third quarters of its fiscal year on Form N-Q. The Funds' Form N-Q is available (i) on the Funds’ website at www.allianzinvestors.com (ii) on the Commission’s website at www.sec.gov, and (iii) at the Commission’s Public Reference Room located at the Commission’s headquarters’ office, 450 5th Street N.W. Room 1200, Washington, D.C. 20459, (202) 942-8090.

On December 30, 2005, the Funds submitted a CEO annual certification to the New York Stock Exchange (‘‘NYSE’’) on which the each Fund’s principal executive officer certified that he was not aware, as of that date, of any violation by the Fund of the NYSE’s Corporate Governance listing standards. In addition, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and related SEC rules each Fund’s principal executive and principal financial officer made quarterly certifications, included in filings with the SEC on Forms N-CSR and N-Q, relating to, among other things, the Funds’ disclosure controls and procedures and internal control over financial reporting, as applicable.

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



ITEM 2. CODE OF ETHICS

     (a)  As of the end of the period covered by this report, the registrant has
          adopted a code of ethics (the "Section 406 Standards for Investment
          Companies -- Ethical Standards for Principal Executive and Financial
          Officers") that applies to the registrant's Principal Executive
          Officer and Principal Financial Officer; the registrant's Principal
          Financial Officer also serves as the Principal Accounting Officer. The
          registrant undertakes to provide a copy of such code of ethics to any
          person upon request, without charge, by calling 1-800-331-1710. The
          Investment Managers code of ethics are included as an Exhibit 99.CODE
          ETH hereto.

     (b)  During the period covered by this report, there were not any
          amendments to a provision of the code of ethics adopted in 2(a) above.

     (c)  During the period covered by this report, there were not any waivers
          or implicit waivers to a provision of the code of ethics adopted in
          2(a) above.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT

The registrant's Board has determined that Mr. Paul Belica, a member of the
Board's Audit Oversight Committee is an "audit committee financial expert," and
that he is "independent," for purposes of this Item.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES

     a)   Audit fees. The aggregate fees billed for the last fiscal year (the
          "Reporting Period") for professional services rendered by the
          Registrant's principal accountant (the "Auditor") for the audit of the
          Registrant's annual financial statements, or services that are
          normally provided by the Auditor in connection with the statutory and
          regulatory filings or engagements for the Reporting Periods, were
          $33,080 in 2005 and $40,266 in 2006.

     b)   Audit-Related Fees. The aggregate fees billed in the Reporting Period
          for assurance and related services by the principal accountant that
          are reasonably related to the performance of the audit registrant's
          financial statements and are not reported under paragraph (e) of this
          Item were $8,270 in 2005 and $9,086 in 2006. These services consist
          of accounting consultations, agreed upon procedure reports (inclusive
          of annual review of basic maintenance testing associated with the
          Preferred Shares), attestation reports and comfort letters.

     c)   Tax Fees. The aggregate fees billed in the Reporting Period for
          professional services rendered by the Auditor for tax compliance, tax
          service and tax planning ("Tax Services") were $8,000 in 2005 and
          $8,500 in 2006. These services consisted of review or preparation of
          U.S. federal, state, local and excise tax returns.

     d)   All Other Fees. There were no other fees billed in the Reporting
          Periods for products and services provided by the Auditor to the
          Registrant.

     e)   1. Audit Committee Pre-Approval Policies and Procedures. The
          Registrant's Audit Committee has established policies and procedures
          for pre-approval of all audit and permissible non-audit services by
          the Auditor for the Registrant, as well as the Auditor's engagements
          related directly to the operations and financial reporting of the
          Registrant. The Registrant's policy is stated below.

          PIMCO Municipal Income Fund (THE "FUND")



AUDIT OVERSIGHT COMMITTEE POLICY FOR PRE-APPROVAL OF SERVICES PROVIDED BY THE
INDEPENDENT ACCOUNTANTS

The Funds' Audit Oversight Committee ("Committee") is charged with the oversight
of the Funds' financial reporting policies and practices and their internal
controls. As part of this responsibility, the Committee must pre-approve any
independent accounting firm's engagement to render audit and/or permissible
non-audit services, as required by law. In evaluating a proposed engagement by
the independent accountants, the Committee will assess the effect that the
engagement might reasonably be expected to have on the accountant's
independence. The Committee's evaluation will be based on:

     a review of the nature of the professional services expected to provided,

     the fees to be charged in connection with the services expected to be
     provided,

     a review of the safeguards put into place by the accounting firm to
     safeguard independence, and

     periodic meetings with the accounting firm.

POLICY FOR AUDIT AND NON-AUDIT SERVICES TO BE PROVIDED TO THE FUNDS

On an annual basis, the Funds' Committee will review and pre-approve the scope
of the audits of the Funds and proposed audit fees and permitted non-audit
(including audit-related) services that may be performed by the Funds'
independent accountants. At least annually, the Committee will receive a report
of all audit and non-audit services that were rendered in the previous calendar
year pursuant to this Policy. In addition to the Committee's pre-approval of
services pursuant to this Policy, the engagement of the independent accounting
firm for any permitted non-audit service provided to the Funds will also require
the separate written pre-approval of the President of the Funds, who will
confirm, independently, that the accounting firm's engagement will not adversely
affect the firm's independence. All non-audit services performed by the
independent accounting firm will be disclosed, as required, in filings with the
Securities and Exchange Commission.

AUDIT SERVICES

The categories of audit services and related fees to be reviewed and
pre-approved annually by the Committee are:

     Annual Fund financial statement audits
     Seed audits (related to new product filings, as required)
     SEC and regulatory filings and consents
     Semiannual financial statement reviews

AUDIT-RELATED SERVICES

The following categories of audit-related services are considered to be
consistent with the role of the Fund's independent accountants and services
falling under one of these categories will be pre-approved by the Committee on
an annual basis if the Committee deems those services to be consistent with the
accounting firm's independence:

     Accounting consultations
     Fund merger support services
     Agreed upon procedure reports (inclusive of quarterly review of Basic
       Maintenance testing associated with issuance of Preferred Shares and
       semiannual report review)
     Other attestation reports
     Comfort letters
     Other internal control reports

Individual audit-related services that fall within one of these categories and
are not presented to the Committee as part of the annual pre-approval process
described above, may be pre-approved, if deemed consistent with the accounting
firm's independence, by the Committee Chair (or any other Committee



member who is a disinterested trustee under the Investment Company Act to whom
this responsibility has been delegated) so long as the estimated fee for those
services does not exceed $100,000. Any such pre-approval shall be reported to
the full Committee at its next regularly scheduled meeting.

TAX SERVICES

The following categories of tax services are considered to be consistent with
the role of the Funds' independent accountants and services falling under one of
these categories will be pre-approved by the Committee on an annual basis if the
Committee deems those services to be consistent with the accounting firm's
independence:

     Tax compliance services related to the filing or amendment of the
       following:
          Federal, state and local income tax compliance; and, sales and use
            tax compliance
          Timely RIC qualification reviews
          Tax distribution analysis and planning
          Tax authority examination services
          Tax appeals support services
          Accounting methods studies
          Fund merger support service
          Other tax consulting services and related projects

Individual tax services that fall within one of these categories and are not
presented to the Committee as part of the annual pre-approval process described
above, may be pre-approved, if deemed consistent with the accounting firm's
independence, by the Committee Chairman (or any other Committee member who is a
disinterested trustee under the Investment Company Act to whom this
responsibility has been delegated) so long as the estimated fee for those
services does not exceed $100,000. Any such pre-approval shall be reported to
the full Committee at its next regularly scheduled meeting.

PROSCRIBED SERVICES

The Funds' independent accountants will not render services in the following
categories of non-audit services:

     Bookkeeping or other services related to the accounting records or
       financial statements of the Funds
     Financial information systems design and implementation
     Appraisal or valuation services, fairness opinions, or contribution-in-kind
       reports
     Actuarial services
     Internal audit outsourcing services
     Management functions or human resources
     Broker or dealer, investment adviser or investment banking services
     Legal services and expert services unrelated to the audit
     Any other service that the Public Company Accounting Oversight Board
       determines, by regulation, is impermissible

PRE-APPROVAL OF NON-AUDIT SERVICES PROVIDED TO OTHER ENTITIES WITHIN THE FUND
COMPLEX

The Committee will pre-approve annually any permitted non-audit services to be
provided to Allianz Global Investors Fund Management LLC (Formerly, PA Fund
Management LLC) or any other investment manager to the Funds (but not including
any sub-adviser whose role is primarily portfolio management and is
sub-contracted by the investment manager) (the "Investment Manager") and any
entity controlling, controlled by, or under common control with the Investment
Manager that provides ongoing services to the Funds (including affiliated
sub-advisers to the Funds), provided, in each case, that the engagement relates
directly to the operations and financial reporting of the Funds (such entities,
including the Investment Manager, shall be referred to herein as the "Accounting
Affiliates"). Individual projects that are not presented to the Committee as
part of the annual pre-approval process, may be pre-approved, if deemed



consistent with the accounting firm's independence, by the Committee Chairman
(or any other Committee member who is a disinterested trustee under the
Investment Company Act to whom this responsibility has been delegated) so long
as the estimated fee for those services does not exceed $100,000. Any such
pre-approval shall be reported to the full Committee at its next regularly
scheduled meeting.

Although the Committee will not pre-approve all services provided to the
Investment Manager and its affiliates, the Committee will receive an annual
report from the Funds' independent accounting firm showing the aggregate fees
for all services provided to the Investment Manager and its affiliates.

DE MINIMUS EXCEPTION TO REQUIREMENT OF PRE-APPROVAL OF NON-AUDIT SERVICES

With respect to the provision of permitted non-audit services to a Fund or
Accounting Affiliates, the pre-approval requirement is waived if:

     (1)  The aggregate amount of all such permitted non-audit services provided
          constitutes no more than (i) with respect to such services provided to
          the Fund, five percent (5%) of the total amount of revenues paid by
          the Fund to its independent accountant during the fiscal year in which
          the services are provided, and (ii) with respect to such services
          provided to Accounting Affiliates, five percent (5%) of the total
          amount of revenues paid to the Fund's independent accountant by the
          Fund and the Accounting Affiliates during the fiscal year in which the
          services are provided;

     (2)  Such services were not recognized by the Fund at the time of the
          engagement for such services to be non-audit services; and

     (3)  Such services are promptly brought to the attention of the Committee
          and approved prior to the completion of the audit by the Committee or
          by the Committee Chairman (or any other Committee member who is a
          disinterested trustee under the Investment Company Act to whom this
          Committee Chairman or other delegate shall be reported to the full
          Committee at its next regularly scheduled meeting.

          e)   2. No services were approved pursuant to the procedures contained
               in paragraph (C) (7) (i) (C) of Rule 2-01 of Registration S-X.

          f)   Not applicable

          g)   Non-audit fees. The aggregate non-audit fees billed by the
               Auditor for services rendered to the Registrant, and rendered to
               the Adviser, for the 2005 Reporting Period was $1,857,523 and the
               2006 Reporting Period was $2,496,070.

          h)   Auditor Independence. The Registrant's Audit Oversight Committee
               has considered whether the provision of non-audit services that
               were rendered to the Adviser which were not pre-approved is
               compatible with maintaining the Auditor's independence.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANT

The Fund has a separately designated standing audit committee established in
accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934. The
audit committee of the Fund is comprised of Robert E. Connor, Paul Belica, John
J. Dalessandro II, Hans W. Kertess and R. Peter Sullivan III.

ITEM 6. SCHEDULE OF INVESTMENTS Schedule of Investments is included as part of
the report to shareholders filed under Item 1 of this form.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES




The registrant has delegated the voting of proxies relating to its voting
securities to its sub-adviser, Pacific Investment Management Co. (the
"Sub-Adviser").

         PACIFIC INVESTMENT MANAGEMENT COMPANY LLC
         -----------------------------------------

         Pacific Investment Management Company LLC ("PIMCO") has adopted written
proxy voting policies and procedures ("Proxy Policy") as required by Rule
206(4)-6 under the Investment Advisers Act of 1940, as amended. PIMCO has
implemented the Proxy Policy for each of its clients as required under
applicable law, unless expressly directed by a client in writing to refrain from
voting that client's proxies. Recognizing that proxy voting is a rare event in
the realm of fixed income investing and is typically limited to solicitation of
consent to changes in features of debt securities, the Proxy Policy also applies
to any voting rights and/or consent rights of PIMCO, on behalf of its clients,
with respect to debt securities, including but not limited to, plans of
reorganization, and waivers and consents under applicable indentures.

         The Proxy Policy is designed and implemented in a manner reasonably
expected to ensure that voting and consent rights are exercised in the best
interests of PIMCO's clients. Each proxy is voted on a case-bycase basis taking
into consideration any relevant contractual obligations as well as other
relevant facts and circumstances at the time of the vote. In general, PIMCO
reviews and considers corporate governance issues related to proxy matters and
generally supports proposals that foster good corporate governance practices.
PIMCO may vote proxies as recommended by management on routine matters related
to the operation of the issuer and on matters not expected to have a significant
economic impact on the issuer and/or its shareholders.

         PIMCO will supervise and periodically review its proxy voting
activities and implementation of the Proxy Policy. PIMCO will review each proxy
to determine whether there may be a material conflict between PIMCO and its
client. If no conflict exists, the proxy will be forwarded to the appropriate
portfolio manager for consideration. If a conflict does exist, PIMCO will seek
to resolve any such conflict in accordance with the Proxy Policy. PIMCO seeks to
resolve any material conflicts of interest by voting in good faith in the best
interest of its clients. If a material conflict of interest should arise, PIMCO
will seek to resolve such conflict in the client's best interest by pursuing any
one of the following courses of action: (i) convening a committee to assess and
resolve the conflict; (ii) voting in accordance with the instructions of the
client; (iii) voting in accordance with the recommendation of an independent
third-party service provider; (iv) suggesting that the client engage another
party to determine how the proxy should be voted; (v) delegating the vote to a
third-party service provider; or (vi) voting in accordance with the factors
discussed in the Proxy Policy.

         Clients may obtain a copy of PIMCO's written Proxy Policy and the
factors that PIMCO may consider in determining how to vote a client's proxy.
Except as required by law, PIMCO will not disclose to third parties how it voted
on behalf of a client. However, upon request from an appropriately authorized
individual, PIMCO will disclose to its clients or the entity delegating the
voting authority to PIMCO for such clients, how PIMCO voted such client's proxy.
In addition, a client may obtain copies of PIMCO's Proxy Policy and information
as to how its proxies have been voted by contacting PIMCO.





         ALLIANZ GLOBAL INVESTORS FUND MANAGEMENT
         ----------------------------------------

         DESCRIPTION OF PROXY VOTING POLICY AND PROCEDURES

         The Registrant and its Board of Trustees have delegated to Allianz
Global Investors Fund Management LLC ("Allianz Global Investors"), and Allianz
Global Investors has in turn delegated to the sub-adviser, responsibility for
voting any proxies relating to portfolio securities held by the Registrant in
accordance with the sub-advisers' proxy voting policies and procedures.

         Allianz Global Investors (for purposes of this description, a
"Company") typically votes proxies as part of its discretionary authority to
manage accounts (except as provided below, Allianz Global Investors' registered
investment company clients), unless the client has explicitly reserved the
authority for itself. When voting proxies, the Company's primary objective is to
make voting decisions solely in the best economic interests of its clients. The
Company will act in a manner that it deems prudent and diligent and which is
intended to enhance the economic value of the underlying portfolio securities
held in its clients' accounts.

         The Company has adopted written Proxy Voting Policies and Procedures
(the "Proxy Guidelines") that are reasonably designed to ensure that the Company
is voting in the best interest of its clients. The Proxy Guidelines reflect the
Company's general voting positions on specific corporate governance issues and
corporate actions. Some issues may require a case by case analysis prior to
voting and may result in a vote being cast that will deviate from the Proxy
Guidelines. Upon receipt of a client's written request, the Company may also
vote proxies for that client's account in a particular manner that may differ
from the Proxy Guidelines. Deviation from a Company's Proxy Guidelines will be
documented and maintained in accordance with Rule 204-2 under the Investment
Advisers Act of 1940.

         In accordance with the Proxy Guidelines, the Company may review
additional criteria associated with voting proxies and evaluate the expected
benefit to its clients when making an overall determination on how or whether to
vote the proxy. The Company may vote proxies individually for an account or
aggregate and record votes across a group of accounts, strategy or product. In
addition, the Company may refrain from voting a proxy on behalf of its clients'
accounts due to de-minimis holdings, impact on the portfolio, items relating to
foreign issuers, timing issues related to the opening/closing of accounts and
contractual arrangements with clients and/or their authorized delegate. For
example, the Company may refrain from voting a proxy of a foreign issuer due to
logistical considerations that may have a detrimental effect on the Company's
ability to vote the proxy. These issues may include, but are not limited to: (i)
proxy statements and ballots being written in a foreign language, (ii) untimely
notice of a shareholder meeting, (iii) requirements to vote proxies in person,
(iv) restrictions on a foreigner's ability to exercise votes, (v) restrictions
on the sale of securities for a period of time in proximity to the shareholder
meeting, or (vi) requirements to provide local agents with power of attorney to
facilitate the voting instructions. Such proxies are voted on a best-efforts
basis.

         To assist in the proxy voting process, the Company may retain an
independent third party service provider to assist in providing research,
analysis and voting recommendations on corporate governance issues and corporate
actions as well as assist in the administrative process. The services provided
offer a variety of proxy-related services to assist in the Company's handling of
proxy voting responsibilities.

         Conflicts of Interest. The Company may have conflicts of interest that
can affect how it votes its clients' proxies. For example, the Company or an
affiliate may manage a pension plan whose management is sponsoring a proxy
proposal. The Proxy Guidelines are designed to prevent material conflicts of
interest from affecting the manner in which the Company votes its clients'
proxies. In order to ensure that all material conflicts of interest are
addressed appropriately while carrying out its obligation to vote proxies, the
Chief Investment Officer of the





Company may designate an employee or a proxy committee to be responsible for
addressing how the Company resolves such material conflicts of interest with its
clients.

         Registered Investment Companies for which Allianz Global Investors
Serves as Adviser. With respect to registered investment companies ("funds") for
which Allianz Global Investors serves as investment adviser, it is the policy of
Allianz Global Investors that proxies should be voted in the interest of the
shareholders of the applicable fund, as determined by those who are in the best
position to make this determination. Allianz Global Investors believes that the
firms and/or persons purchasing and selling securities for the funds and
analyzing the performance of the funds' securities are in the best position and
have the information necessary to vote proxies in the best interests of the
funds and their shareholders, including in situations where conflicts of
interest may arise between the interests of shareholders, on one hand, and the
interests of the investment adviser, a sub-adviser and/or any other affiliated
person of the fund, on the other. Accordingly, Allianz Global Investor's policy
is to delegate proxy voting responsibility to those entities with portfolio
management responsibility for the funds.



ITEM 8.  PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

(a)(1)

         As of July 6, 2006, [PLEASE INSERT DATE OF FILING] the following
individual has primary responsibility for the day-to-day implementation of the
PIMCO municipal Income Fund ("PMF"), PIMCO California Municipal Income Fund
("PCQ") and PIMCO NY Municipal Income Fund ("PNF") (each a "Fund" and
collectively, the "Funds"):

MARK V. MCCRAY

         Mr. McCray is an Executive Vice President and portfolio manager
responsible for PIMCO's municipal bond funds and tax-sensitive portfolios. He
currently serves as Chairman of PIMCO's Shadow Investment Committee. He joined
PIMCO in 2000 from Goldman, Sachs & Co. in New York, where he was Vice President
and co-head of municipal bond trading, with primary responsibility for the
firm's proprietary municipal trading. Mr. McCray has seventeen years of
investment experience and holds bachelor's degrees in finance and real estate
from Temple University and an MBA from The Wharton School of the University of
Pennsylvania, with concentrations in finance, accounting, and strategic
management.


(a)(2)

         The following summarizes information regarding each of the accounts,
excluding the Funds that were managed by the Portfolio Manager as of April 30,
2006, including accounts managed by a team, committee, or other group that
includes the Portfolio Manager. Unless mentioned otherwise, the advisory fee
charged for managing each of the accounts listed below is not based on
performance.




-----------------------------------------------------------------------------------------------------------------------------------
                               Registered Investment Companies    Other Pooled Investment Vehicles   Other Accounts
-----------------------------------------------------------------------------------------------------------------------------------
PM                Fund         #            AUM($million)         #            AUM($million)         #         AUM($million)
-----------------------------------------------------------------------------------------------------------------------------------

MARK V. MCCRAY    PMF              13             5,351.08             2              731.92           19*          1517.05*
-----------------------------------------------------------------------------------------------------------------------------------
                  PCQ              13             5,498.60             2              731.92           19*          1517.05*
-----------------------------------------------------------------------------------------------------------------------------------
                  PNF              13             5,745.41             2              731.92           19*          1517.05*
-----------------------------------------------------------------------------------------------------------------------------------

* Of these other accounts, one account totaling $54.68 million in assets pay an
  advisory fee that is based in part on the performance of the accounts.



         From time to time, potential conflicts of interest may arise between a
portfolio manager's management of the investments of a Fund, on the one hand,
and the management of other accounts, on the other. The other accounts might
have similar investment objectives or strategies as the Fund, track the same
index a Fund tracks or otherwise hold, purchase, or sell securities that are
eligible to be held, purchased or sold by the Fund. The other accounts might
also have different investment objectives or strategies than the Fund.

         Knowledge and Timing of Fund Trades. A potential conflict of interest
may arise as a result of the portfolio manager's day-to- day management of a
Fund. Because of their positions with the Fund, the portfolio managers know the
size, timing and possible market impact of a Fund's trades. It is theoretically
possible that the portfolio managers could use this information to the advantage
of other accounts they manage and to the possible detriment of a Fund.

         Investment Opportunities. A potential conflict of interest may arise as
result of the portfolio manager's management of a number of accounts with
varying investment guidelines. Often, an investment opportunity may be suitable
for both a Fund and other accounts managed by the portfolio manager, but may not
be available in sufficient quantities for both the Fund and the other accounts
to participate fully. Similarly, there may be limited opportunity to sell an
investment held by a Fund and another account. Pacific Investment Management
Company LLC ("PIMCO") has adopted policies and procedures reasonably designed to
allocate investment opportunities on a fair and equitable basis over time.

         Under PIMCO's allocation procedures, investment opportunities are
allocated among various investment strategies based on individual account
investment guidelines and PIMCO's investment outlook. PIMCO has also adopted
additional procedures to complement the general trade allocation policy that are
designed to address potential conflicts of interest due to the side-by- side
management of the Fund and certain pooled investment vehicles, including
investment opportunity allocation issues.

         Performance Fees. A portfolio manager may advise certain accounts with
respect to which the advisory fee is based entirely or partially on performance.
Performance fee arrangements may create a conflict of interest for the portfolio
manager in that the portfolio manager may have an incentive to allocate the
investment opportunities that he or she believes might be the most profitable to
such other accounts instead of allocating them to a Fund. PIMCO has adopted
policies and procedures reasonably designed to allocate investment opportunities
between such other accounts and the Fund on a fair and equitable basis over
time.





 (a)(3)

         As of April 30, 2006, the following explains the compensation structure
of the individual that shares primary responsibility for day-to-day portfolio
management of the Fund:





         PIMCO has adopted a "Total Compensation Plan" for its professional
level employees, including its portfolio managers, that is designed to pay
competitive compensation and reward performance, integrity and teamwork
consistent with the firm's mission statement. The Total Compensation Plan
includes a significant incentive component that rewards high performance
standards, work ethic and consistent individual and team contributions to the
firm. The compensation of portfolio managers consists of a base salary, a bonus,
and may include a retention bonus. Portfolio managers who are Managing Directors
of PIMCO also receive compensation from PIMCO's profits. Certain employees of
PIMCO, including portfolio managers, may elect to defer compensation through
PIMCO's deferred compensation plan. PIMCO also offers its employees a
non-contributory defined contribution plan through which PIMCO makes a
contribution based on the employee's compensation. PIMCO's contribution rate
increases at a specified compensation level, which is a level that would include
portfolio managers.

         Salary and Bonus. Base salaries are determined by considering an
individual portfolio manager's experience and expertise and may be reviewed for
adjustment annually. Portfolio managers are entitled to receive bonuses, which
may be significantly more than their base salary, upon attaining certain
performance objectives based on predetermined measures of group or department
success. These goals are specific to individual portfolio managers and are
mutually agreed upon annually by each portfolio manager and his or her manager.
Achievement of these goals is an important, but not exclusive, element of the
bonus decision process.

         In addition, the following non-exclusive list of qualitative criteria
(collectively, the "Bonus Factors") may be considered when determining the bonus
for portfolio managers:

     o   3-year, 2-year and 1-year dollar-weighted and account-weighted
         investment performance as judged against the applicable benchmarks for
         each account managed by a portfolio manager (including the Funds) and
         relative to applicable industry peer groups;

     o   Appropriate risk positioning that is consistent with PIMCO's investment
         philosophy and the Investment Committee/CIO approach to the generation
         of alpha;

     o   Amount and nature of assets managed by the portfolio manager;

     o   Consistency of investment performance across portfolios of similar
         mandate and guidelines (reward low dispersion);

     o   Generation and contribution of investment ideas in the context of
         PIMCO's secular and cyclical forums, portfolio strategy meetings,
         Investment Committee meetings, and on a day-to-day basis;

     o   Absence of defaults and price defaults for issues in the portfolios
         managed by the portfolio manager;

     o   Contributions to asset retention, gathering and client satisfaction;

     o   Contributions to mentoring, coaching and/or supervising; and

     o   Personal growth and skills added.

         A portfolio manager's compensation is not based directly on the
performance of any portfolio or any other account managed by that portfolio
manager. Final award amounts are determined by the PIMCO Compensation Committee.

         Retention Bonuses. Certain portfolio managers may receive a
discretionary, fixed amount retention bonus, based upon the Bonus Factors and
continued employment with PIMCO. Each portfolio manager who is a Senior Vice
President or Executive Vice President of PIMCO receives a variable amount
retention bonus, based upon the Bonus Factors and continued employment with
PIMCO.





         Investment professionals, including portfolio managers, are eligible to
participate in a Long Term Cash Bonus Plan ("Cash Bonus Plan"), which provides
cash awards that appreciate or depreciate based upon the performance of PIMCO's
parent company, Allianz Global Investors of America L.P. ("AGI"), and PIMCO over
a three-year period. The aggregate amount available for distribution to
participants is based upon AGI's profit growth and PIMCO's profit growth.
Participation in the Cash Bonus Plan is based upon the Bonus Factors, and the
payment of benefits from the Cash Bonus Plan, is contingent upon continued
employment at PIMCO.

         Profit Sharing Plan. Instead of a bonus, portfolio managers who are
Managing Directors of PIMCO receive compensation from a non-qualified profit
sharing plan consisting of a portion of PIMCO's net profits. Portfolio managers
who are Managing Directors receive an amount determined by the Managing Director
Compensation Committee, based upon an individual's overall contribution to the
firm and the Bonus Factors.

         From time to time, under the PIMCO Class B Unit Purchase Plan, Managing
Directors and certain executive management (including Executive Vice Presidents)
of PIMCO may become eligible to purchase Class B Units of PIMCO. Upon their
purchase, the Class B Units are immediately exchanged for Class A Units of PIMCO
Partners, LLC, a California limited liability company that holds a minority
interest in PIMCO and is owned by the Managing Directors and certain executive
management of PIMCO. The Class A Units of PIMCO Partners, LLC entitle their
holders to distributions of a portion of the profits of PIMCO. The PIMCO
Compensation Committee determines which Managing Directors and executive
management may purchase Class B Units and the number of Class B Units that each
may purchase. The Class B Units are purchased pursuant to full recourse notes
issued to the holder. The base compensation of each Class B Unit holder is
increased in an amount equal to the principal amortization applicable to the
notes given by the Managing Director or member of executive management.

         Portfolio managers who are Managing Directors also have long-term
employment contracts, which guarantee severance payments in the event of
involuntary termination of a Managing Director's employment with PIMCO.

(a)(4)
         The following summarizes the dollar range of securities the portfolio
manager for the Funds beneficially owned of the Funds that he managed as of
4/30/06.


---------------------------------------------------------------------------
                       PIMCO Municipal Income Fund
                  PIMCO California Municipal Income Fund
                   PIMCO New York Municipal Income Fund
---------------------------------------------------------------------------
Portfolio Manager      Dollar Range of Equity Securities in the Funds
---------------------------------------------------------------------------
MARK V. MCCRAY                                None
---------------------------------------------------------------------------

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED COMPANIES



PIMCO MUNICIPAL INCOME -I                      Item 9
SHARES ISSUED IN REINVESTMENT
A/O 4/30/06                                                 TOTAL NUMBER                  MAXIMUM NUMBER OF
                                                         OF SHARES PURCHASED           SHARES MAY THAT YET BE
                 TOTAL NUMBER         AVERAGE            AS PART OF PUBLICLY          PURCHASED UNDER THE PLANS
PERIOD             OF SHARES         PRICE PAID          ANNOUNCED PLANS OR                  OR PROGRAMS
                   PURCHASED         PER SHARE                PROGRAMS

MAY '05               N/A               N/A                      N/A                                N/A
JUNE '05              N/A              14.98                    14,995                              N/A
JULY '05              N/A              15.07                    14,790                              N/A
AUGUST '05            N/A              15.00                    14,008                              N/A
SEPT. '05             N/A              15.24                    13,645                              N/A
OCT '05               N/A              14.82                    15,462                              N/A
NOV 05                N/A              14.60                    15,654                              N/A
DEC 05                N/A              15.09                    15,154                              N/A
JAN. 06               N/A              15.67                    14,301                              N/A
FEB 06                N/A              15.03                    15,049                              N/A
MAR 06                N/A              15.51                    14,800                              N/A
APR 06                N/A              15.56                    14,870                              N/A


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

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

ITEM 11. CONTROLS AND PROCEDURES

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

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

ITEM 12. EXHIBITS

(a)(1) Exhibit 99.CODE ETH - Code of Ethics

(a)(2) Exhibit 99 Cert. - Certification pursuant to Section 302 of the
       Sarbanes-Oxley Act of 2002 (b) Exhibit 99.906 Cert. - Certification
       pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(b)    Exhibit 99.906 Cert. - Certification pursuant to Section 906 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 Municipal Income Fund
             -------------------------------------------------------

By  /s/ Brian S. Shlissel
    -----------------------
President and Chief Executive Officer

Date  July 6, 2006
      ------------------

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

Date  July 6, 2006
      -----------------


Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

By  /s/ Brian S. Shlissel
    --------------------------
President and Chief Executive Officer

Date  July 6, 2006
      ------------------

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

Date  July 6, 2006
      ------------------