Edgar Filing: PIMCO MUNICIPAL INCOME FUND II

PIMCO Municipal Income Fund II

OMB APPROVAL

OMB Number: 3235-0578

Expires: April 30, 2013

Estimated average burden

hours per response: 5.6

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY


Investment Company Act File Number:		811-21076

Registrant Name:		PIMCO Municipal Income Fund II

Address of Principal Executive Offices:		1633 Broadway, 41^st Floor
		New York, New York 10019

Name and Address of Agent for Service:		Lawrence G. Altadonna 1633 Broadway, 41^st Floor
		New York, New York 10019

Registrant’s telephone number, including area code:		212-739-3371

Date of Fiscal Year End:		May 31, 2012

Date of Reporting Period:		August 31, 2011

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b 1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

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

Item 1. Schedule of Investments

PIMCO Municipal Income Fund II Schedule of Investments

August 31, 2011 (unaudited)


Principal Amount (000s)			Credit Rating (Moody’s/S&P)	Value*
	MUNICIPAL BONDS & NOTES—95.8%
		Alabama—1.3%
$	10,000	Birmingham-Baptist Medical Centers Special Care Facs. Financing Auth.
		Rev., Baptist Health Systems, Inc., 5.00%, 11/15/30, Ser. A	Baa2/NR	$	8,533,300
	1,235	Montgomery BMC Special Care Facs. Financing Auth. Rev.,
		5.00%, 11/15/29, Ser. B (NPFGC)	A3/BBB+		1,126,048
	2,000	State Docks Department Rev., 6.00%, 10/1/40	NR/BBB+		2,022,180
	2,650	Tuscaloosa Public Educational Building Auth. Rev.,
		Stillman College Project, 5.00%, 6/1/26, Ser. A	NR/BB+		2,135,847

					13,817,375


		Alaska—0.7%
	3,550	Housing Finance Corp. Rev., 5.25%, 6/1/32, Ser. C (NPFGC)	Aa2/AA+		3,566,579
	5,900	Northern Tobacco Securitization Corp. Rev., 5.00%, 6/1/46, Ser. A	Baa3/NR		3,719,773

					7,286,352


		Arizona—9.3%
		Health Facs. Auth. Rev., Banner Health,
	3,500	5.00%, 1/1/35, Ser. A	NR/AA-		3,522,365
	2,860	5.50%, 1/1/38, Ser. D	NR/AA-		2,970,968
		Pima Cnty. Industrial Dev. Auth. Rev.,
	29,700	5.00%, 9/1/39	Aa2/AA		29,172,825
	1,500	Tuscon Electric Power Co., 5.25%, 10/1/40, Ser. A	Baa3/BBB-		1,365,165
		Salt River Project Agricultural Improvement & Power Dist. Rev., Ser. A (g),
	41,100	5.00%, 1/1/37	Aa1/AA		42,367,935
	10,000	5.00%, 1/1/39	Aa1/AA		10,486,200
	11,400	Salt Verde Financial Corp. Rev., 5.00%, 12/1/37	A3/A		9,888,474

					99,773,932


		California—15.2%
		Bay Area Toll Auth. Rev., San Francisco Bay Area,
	6,000	5.00%, 10/1/29	A1/A+		6,321,720
	1,430	5.00%, 4/1/34, Ser. F-1	Aa3/AA		1,488,373
	1,565	Foothill-Eastern Transportation Corridor Agcy. Rev.,
		5.875%, 1/15/26 (IBC-NPFGC)	Baa1/BBB		1,527,111
		Golden State Tobacco Securitization Corp. Rev., Ser. A-1,
	8,750	5.00%, 6/1/33	Baa3/BB+		6,077,837
	7,000	5.75%, 6/1/47	Baa3/BB+		4,954,180
	2,000	Hayward Unified School Dist., GO, 5.00%, 8/1/33	NR/A+		1,968,520
		Health Facs. Financing Auth. Rev.,
	1,500	Scripps Health, 5.00%, 11/15/36, Ser. A	Aa3/AA-		1,502,895
		Sutter Health,
	6,300	5.00%, 11/15/42, Ser. A (IBC-NPFGC)	Aa3/AA-		5,975,928
	3,000	6.00%, 8/15/42, Ser. B	Aa3/AA-		3,243,270
	1,500	Indian Wells Redev. Agcy., Tax Allocation, Whitewater Project,
		4.75%, 9/1/34, Ser. A (AMBAC)	A2/A		1,224,330
	2,000	Los Angeles Community College Dist., GO,
		5.00%, 8/1/32, Ser. A (FGIC-NPFGC)	Aa1/AA		2,061,700
	4,000	Los Angeles Department of Water & Power Rev.,
		5.00%, 7/1/39, Ser. A-1 (AMBAC)	Aa3/AA-		4,097,040
		Los Angeles Unified School Dist., GO,
	5,000	5.00%, 7/1/30, Ser. E (AMBAC)	Aa2/AA-		5,132,400

PIMCO Municipal Income Fund II Schedule of Investments

August 31, 2011 (unaudited) (continued)


Principal Amount (000s)			Credit Rating (Moody’s/S&P)	Value*
		California (continued)
$	5,000	5.00%, 7/1/32, Ser. C (AGM)	Aa2/AA+	$	5,186,050
	1,365	Lynwood Utility Auth. Rev., 5.00%, 6/1/29, Ser. A (AGC)	Aa3/AA+		1,405,486
	2,000	Montebello Unified School Dist., GO, 5.00%, 8/1/33 (AGM)	Aa3/AA+		2,070,680
	1,750	M-S-R Energy Auth. Rev., 6.50%, 11/1/39, Ser. B	NR/A		1,916,215
	3,300	Municipal Finance Auth. Rev., Azusa Pacific Univ. Project,
		7.75%, 4/1/31, Ser. B	NR/NR		3,487,935
	650	Murrieta Valley Unified School Dist. Public Financing Auth.,
		Special Tax, 4.75%, 9/1/36, Ser. A (AGC)	Aa3/AA+		612,807
	3,000	Newport Beach Rev., Hoag Memorial Hospital Presbyterian,
		5.875%, 12/1/30	Aa3/AA		3,255,630
	500	Peralta Community College Dist., GO, 5.00%, 8/1/39, Ser. C	NR/AA-		499,230
	2,000	San Diego Cnty. Water Auth., CP, 5.00%, 5/1/38, Ser. 2008-A (AGM)	Aa2/AA+		2,040,680
	3,300	San Marcos Unified School Dist., GO, 5.00%, 8/1/38, Ser. A	Aa2/AA-		3,382,764
	2,000	Santa Clara Cnty. Financing Auth. Rev.,
		5.75%, 2/1/41, Ser. A (AMBAC)	A2/A+		2,021,780
		State, GO,
	3,300	4.50%, 8/1/27	A1/A-		3,266,604
	7,000	5.00%, 12/1/31 (NPFGC)	A1/A-		7,103,110
	2,925	5.00%, 11/1/32	A1/A-		2,985,343
	1,590	5.00%, 6/1/37	A1/A-		1,564,989
	5,200	5.125%, 8/1/36	A1/A-		5,301,140
	2,500	5.25%, 3/1/38	A1/A-		2,528,725
	5,945	5.25%, 11/1/40	A1/A-		6,043,925
	5,750	5.50%, 3/1/40	A1/A-		6,019,675
	9,500	6.00%, 4/1/38	A1/A-		10,341,700
	2,300	State Univ. Rev., 5.00%, 11/1/30, Ser. A (AMBAC)	Aa2/A+		2,344,413
		Statewide Communities Dev. Auth. Rev.,
		California Baptist Univ.,
	850	6.50%, 11/1/21	NR/NR		898,433
	3,820	9.00%, 11/1/17, Ser. B (a)(b)	NR/NR		3,559,209
	1,000	Cottage Health, 5.00%, 11/1/40	NR/A+		961,380
		Methodist Hospital Project (FHA),
	5,500	6.625%, 8/1/29	Aa2/NR		6,529,985
	19,500	6.75%, 2/1/38	Aa2/NR		22,236,630
	5,690	Sutter Health, 6.00%, 8/15/42, Ser. A	Aa3/AA-		6,151,402
	4,725	Torrance Rev., Memorial Medical Center, 5.00%, 9/1/40, Ser. A	A2/A+		4,416,930

					163,708,154


		Colorado—1.0%
	5,800	Aurora Rev., Children’s Hospital Assoc., 5.00%, 12/1/40	A1/A+		5,643,168
	1,000	Denver Health & Hospital Auth. Rev., 5.625%, 12/1/40	NR/BBB		967,210
		Health Facs. Auth. Rev., Ser. A,
	1,000	American Baptist Homes, 5.90%, 8/1/37	NR/NR		821,190
	500	Evangelical Lutheran, 6.125%, 6/1/38	A3/A-		502,750
	2,000	Housing & Finance Auth. Rev., Evergreen Country Day School, Inc.
		Project, 5.875%, 6/1/37 (a)(b)	NR/CCC		1,313,600
	1,430	Public Auth. for Colorado Energy Rev., 6.50%, 11/15/38	A2/A		1,533,160

					10,781,078


		Connecticut—0.1%
	1,250	Harbor Point Infrastructure Improvement Dist., Tax Allocation,
		7.875%, 4/1/39, Ser. A	NR/NR		1,355,338

PIMCO Municipal Income Fund II Schedule of Investments

August 31, 2011 (unaudited) (continued)


Principal Amount (000s)			Credit Rating (Moody’s/S&P)	Value*
		Florida—4.5%
$	1,000	Brevard Cnty. Health Facs. Auth. Rev., Health First, Inc. Project,
		7.00%, 4/1/39	A3/A-	$	1,095,040
	600	Broward Cnty. Airport Rev., 5.375%, 10/1/29, Ser. O	A1/A+		629,790
	8,500	Broward Cnty. Water & Sewer Rev., 5.25%, 10/1/34, Ser. A (g)	Aa2/AA		9,094,405
	1,000	Clearwater Rev., 5.25%, 12/1/39, Ser. A	Aa3/AA-		1,063,100
	340	Dev. Finance Corp. Rev., Renaissance Charter School,
		6.50%, 6/15/21, Ser. A	NR/NR		339,470
	6,205	Governmental Utility Auth. Rev., Barefoot Bay Utilities System,
		5.00%, 10/1/29 (AMBAC)	WR/NR		6,207,420
	3,000	Highlands Cnty. Health Facs. Auth. Rev., Adventist Health System,
		5.625%, 11/15/37, Ser. B	Aa3/AA-		3,083,910
	7,135	Jacksonville Health Facs. Auth. Rev., Ascension Health,
		5.25%, 11/15/32, Ser. A	Aa1/AA+		7,237,601
	3,000	Leesburg Hospital Rev., Leesburg Regional Medical Center Project,
		5.50%, 7/1/32	Baa1/BBB+		2,874,270
	3,490	Miami-Dade Cnty. Airport Rev., 5.50%, 10/1/36, Ser. A	A2/A-		3,567,373
	500	Sarasota Cnty. Health Facs. Auth. Rev., 5.75%, 7/1/37	NR/NR		410,450
	7,900	State Board of Education, GO, 5.00%, 6/1/38, Ser. D (g)	Aa1/AAA		8,366,811
	5,000	Sumter Landing Community Dev. Dist. Rev.,
		4.75%, 10/1/35, Ser. A (NPFGC)	Baa1/BBB		4,265,650

					48,235,290


		Georgia—0.3%
	1,500	Atlanta Airport Rev., 5.00%, 1/1/40, Ser. A	A1/NR		1,500,900
	2,775	Medical Center Hospital Auth. Rev., Spring Harbor Green Island Project,
		5.25%, 7/1/37	NR/NR		2,212,258

					3,713,158


		Illinois—10.5%
		Chicago, GO, Ser. C,
	10,000	5.00%, 1/1/34 (g)	Aa3/A+		10,096,900
	4,065	5.50%, 1/1/40 (FGIC-NPFGC)	Aa3/A+		4,066,504
		Chicago, Special Assessment, Lake Shore East,
	3,161	6.625%, 12/1/22	NR/NR		3,246,884
	6,697	6.75%, 12/1/32	NR/NR		6,854,179
	1,250	Chicago Motor Fuel Tax Rev., 5.00%, 1/1/38, Ser. A (AGC)	Aa3/AA+		1,277,763
	5,000	Cicero, GO, 5.25%, 12/1/31 (NPFGC)	Baa1/BBB		5,053,100
		Finance Auth. Rev.,
	2,500	Christian Homes, Inc., 5.75%, 5/15/31, Ser. A	NR/NR		2,209,750
	20,100	Elmhurst Memorial Healthcare, 5.625%, 1/1/28	Baa1/NR		19,040,529
	250	Leafs Hockey Club Project, 6.00%, 3/1/37, Ser. A (c)	NR/NR		62,800
	1,000	Memorial Health Systems, 5.50%, 4/1/39	A1/A+		998,550
	700	OSF Healthcare System, 7.125%, 11/15/37, Ser. A	A3/A		765,898
	2,000	Provena Health, 6.00%, 5/1/28, Ser. A	Baa1/BBB+		2,026,740
	5,000	Univ. of Chicago, 5.50%, 7/1/37, Ser. B (g)	Aa1/AA		5,403,200
	42,970	Sports Facs. Auth. Rev., 5.50%, 6/15/30 (AMBAC)	WR/A		45,005,059
		Village of Hillside, Tax Allocation, Mannheim Redev. Project,
	4,500	6.55%, 1/1/20	NR/NR		4,240,935
	2,900	7.00%, 1/1/28	NR/NR		2,542,401

					112,891,192


		Indiana—0.7%
		Finance Auth. Rev.,
	1,500	Duke Energy Indiana, Inc., 6.00%, 8/1/39, Ser. B	NR/A		1,629,465
	2,500	U.S. Steel Corp., 6.00%, 12/1/26	Ba2/BB		2,518,300

PIMCO Municipal Income Fund II Schedule of Investments

August 31, 2011 (unaudited) (continued)


Principal Amount (000s)			Credit Rating (Moody’s/S&P)	Value*
		Indiana (continued)
		Vigo Cnty. Hospital Auth. Rev., Union Hospital, Inc.,
$	990	5.80%, 9/1/47 (a)(b)	NR/NR	$	837,926
	1,900	7.50%, 9/1/22	NR/NR		2,093,743

					7,079,434


		Iowa—3.9%
		Finance Auth. Rev.,
		Deerfield Retirement Community, Inc., Ser. A,
	250	5.50%, 11/15/27	NR/NR		185,717
	1,075	5.50%, 11/15/37	NR/NR		725,980
	4,500	Edgewater LLC Project, 6.75%, 11/15/42	NR/NR		3,930,480
	46,000	Tobacco Settlement Auth. Rev., 5.60%, 6/1/34, Ser. B	Baa3/BBB		36,651,880

					41,494,057


		Kansas—0.1%
	500	Dev. Finance Auth. Rev., Adventist Health, 5.75%, 11/15/38	Aa3/AA-		533,215
	850	Manhattan Rev., Meadowlark Hills Retirement, 5.00%, 5/15/36, Ser. A	NR/NR		674,900

					1,208,115


		Kentucky—0.3%
		Economic Dev. Finance Auth. Rev.,
	2,500	Catholic Healthcare Partners, 5.25%, 10/1/30	A1/AA-		2,508,150
	1,000	Owensboro Medical Healthcare Systems, 6.375%, 6/1/40, Ser. A	Baa2/NR		1,027,140

					3,535,290


		Louisiana—4.7%
		Local Gov’t Environmental Facs. & Community Dev. Auth. Rev.,
	450	Westlake Chemical Corp., 6.50%, 11/1/35, Ser. A-2	Ba2/BBB-		458,644
		Woman’s Hospital Foundation, Ser. A,
	750	5.875%, 10/1/40	A3/BBB+		733,103
	1,000	6.00%, 10/1/44	A3/BBB+		987,200
		Public Facs. Auth. Rev., Ochsner Clinic Foundation Project,
	3,300	5.50%, 5/15/47, Ser. B	Baa1/NR		3,067,152
	2,000	6.50%, 5/15/37	Baa1/NR		2,116,140
	43,395	Tobacco Settlement Financing Corp. Rev., 5.875%, 5/15/39, Ser. 2001-B	Baa3/A-		43,126,385

					50,488,624


		Maryland—0.7%
		Health & Higher Educational Facs. Auth. Rev.,
	1,000	Adventist Healthcare, 5.75%, 1/1/25, Ser. A	Baa2/NR		1,005,070
	1,400	Charlestown Community, 6.25%, 1/1/41	NR/NR		1,440,656
	1,010	King Farm Presbyterian Community, 5.30%, 1/1/37, Ser. A	NR/NR		742,704
	4,050	Washington Cnty. Hospital, 6.00%, 1/1/43	NR/BBB-		4,049,595

					7,238,025


		Massachusetts—0.8%
		Dev. Finance Agcy. Rev.,
		Adventcare Project,
	4,610	6.75%, 10/15/37, Ser. A	NR/NR		4,270,335

PIMCO Municipal Income Fund II Schedule of Investments

August 31, 2011 (unaudited) (continued)


Principal Amount (000s)			Credit Rating (Moody’s/S&P)	Value*
		Massachusetts (continued)
$	580	7.625%, 10/15/37	NR/NR	$	588,851
	1,000	Foxborough Regional Charter School, 7.00%, 7/1/42, Ser. A	NR/BBB		1,026,290
	2,900	State College Building Auth. Rev., 5.50%, 5/1/39, Ser. A	Aa2/AA-		3,089,689

					8,975,165


		Michigan—3.1%
	1,000	Detroit, GO, 5.25%, 11/1/35	Aa3/AA		1,040,470
	4,545	Garden City Hospital Finance Auth. Rev., 5.00%, 8/15/38, Ser. A	NR/NR		3,218,178
	800	Public Educational Facs. Auth. Rev., Bradford Academy, 6.50%, 9/1/37 (a)(b)	NR/BBB-		711,552
	3,000	Royal Oak Hospital Finance Auth. Rev., William Beaumont Hospital,
		8.25%, 9/1/39	A1/A		3,488,280
		State Hospital Finance Auth. Rev.,
	5,000	Ascension Health, 5.25%, 11/15/26, Ser. B	Aa1/AA+		5,076,050
		Oakwood Group, Ser. A,
	13,500	5.75%, 4/1/32	A2/A		13,529,430
	1,925	6.00%, 4/1/22	A2/A		1,989,757
	6,000	Tobacco Settlement Finance Auth. Rev., 6.00%, 6/1/48, Ser. A	NR/BB		4,233,060

					33,286,777


		Minnesota—0.6%
	150	Duluth Housing & Redev. Auth. Rev., 5.875%, 11/1/40, Ser. A	NR/BBB-		134,570
	280	Minneapolis, Tax Allocation, Grant Park Project, 5.35%, 2/1/30	NR/NR		234,875
	1,500	Minneapolis Rev., Providence Project, 5.75%, 10/1/37, Ser. A	NR/NR		1,332,105
		North Oaks Rev., Presbyterian Homes North Oaks,
	2,640	6.00%, 10/1/33	NR/NR		2,623,896
	1,530	6.125%, 10/1/39	NR/NR		1,531,071
	500	Oronoco Rev., Wedum Shorewood Campus Project, 5.40%, 6/1/41	NR/NR		425,075
	400	St. Louis Park Rev., Nicollett Health Services, 5.75%, 7/1/39	NR/A		406,252

					6,687,844


		Mississippi—0.4%
	3,605	Business Finance Corp. Rev., System Energy Res., Inc. Project,
		5.875%, 4/1/22	Ba1/BBB		3,605,072
	740	Dev. Bank Special Obligation Rev., Capital Projects and Equipment
		Acquisition, 5.00%, 7/1/24, Ser. A-2 (AMBAC)	WR/NR		725,548

					4,330,620


		Missouri—1.9%
	20,000	JT Municipal Electric Utility Commission Rev., Prarie State Project,
		5.00%, 1/1/42, Ser. A (AMBAC)	A3/NR		20,184,400
	750	Lee’s Summit, Tax Allocation, Summit Fair Project, 5.625%, 10/1/23	NR/NR		753,863

					20,938,263


		Nevada—0.9%
	10,000	Clark Cnty., GO, 4.75%, 11/1/35 (FGIC-NPFGC) (g)	Aa1/AA+		10,149,500


		New Hampshire—0.2%
	2,000	Business Finance Auth. Rev., Elliot Hospital, 6.125%, 10/1/39, Ser. A	Baa1/BBB+		1,936,200
	360	Health & Education Facs. Auth. Rev., Catholic Medical Center,
		6.125%, 7/1/32, Ser. A	Baa1/BBB+		361,854

					2,298,054

PIMCO Municipal Income Fund II Schedule of Investments

August 31, 2011 (unaudited) (continued)


Principal Amount (000s)			Credit Rating (Moody’s/S&P)	Value*
		New Jersey—3.6%
$	950	Burlington Cnty. Bridge Commission Rev., The Evergreens Project,
		5.625%, 1/1/38	NR/NR	$	812,953
		Economic Dev. Auth., Special Assessment, Kapkowski Road Landfill Project,
	4,000	5.75%, 10/1/21	Ba2/NR		4,030,200
	11,405	5.75%, 4/1/31	Ba2/NR		10,851,972
		Economic Dev. Auth. Rev.,
	525	Arbor Glen, 6.00%, 5/15/28, Ser. A	NR/NR		457,406
	2,000	MSU Student Housing Project, 5.875%, 6/1/42	Baa3/NR		1,995,540
	3,160	Educational Facs. Auth. Rev., Fairleigh Dickinson Univ.,
		6.00%, 7/1/25, Ser. D	NR/NR		3,188,882
		Health Care Facs. Financing Auth. Rev.,
	1,500	AHS Hospital Corp., 6.00%, 7/1/37	A1/A		1,610,340
	1,500	St. Peters Univ. Hospital, 5.75%, 7/1/37	Baa3/BBB-		1,424,565
	1,830	Trinitas Hospital, 5.25%, 7/1/30, Ser. A	Baa3/BBB-		1,645,792
	2,000	State Turnpike Auth. Rev., 5.25%, 1/1/40, Ser. E	A3/A+		2,081,140
		Tobacco Settlement Financing Corp. Rev., Ser. 1-A,
	3,300	4.75%, 6/1/34	Baa3/BB+		2,176,713
	13,150	5.00%, 6/1/41	Baa3/BB-		8,717,004

					38,992,507


		New Mexico—0.2%
	2,000	Farmington Pollution Control Rev., 5.90%, 6/1/40, Ser. D	Baa3/BB+		2,002,480


		New York—2.7%
	1,200	Erie Cnty. Industrial Dev. Agcy. Rev., Orchard Park, Inc. Project,
		6.00%, 11/15/36, Ser. A	NR/NR		885,360
		Liberty Dev. Corp. Rev.,
	1,000	5.125%, 1/15/44	NR/AA		992,900
	2,500	5.625%, 7/15/47	NR/A		2,569,400
	1,250	6.375%, 7/15/49	NR/BBB-		1,308,762
		Goldman Sachs Headquarters,
	1,505	5.25%, 10/1/35	A1/A		1,478,708
	10,000	5.25%, 10/1/35 (g)	A1/A		9,825,300
	1,100	Nassau Cnty. Industrial Dev. Agcy. Rev., Amsterdam at Harborside,
		6.70%, 1/1/43, Ser. A	NR/NR		1,024,089
		New York City Municipal Water Finance Auth. Water & Sewer Rev.,
	2,830	5.00%, 6/15/37, Ser. D (g)	Aa1/AAA		2,922,060
		Second Generation Resolutions,
	4,000	4.75%, 6/15/35, Ser. DD (g)	Aa2/AA+		4,088,880
	2,000	5.00%, 6/15/39, Ser. GG-1	Aa2/AA+		2,099,660
	1,750	State Dormitory Auth. Rev., The New School, 5.50%, 7/1/40	A3/A-		1,833,265
	250	Suffolk Cnty. Industrial Dev. Agcy. Rev., New York Institute of Technology,
		5.00%, 3/1/26	Baa2/BBB+		250,950

					29,279,334


		North Carolina—0.1%
		Medical Care Commission Rev.,
	550	Salemtowne, 5.10%, 10/1/30	NR/NR		493,047
	1,000	Village at Brookwood, 5.25%, 1/1/32	NR/NR		775,720

					1,268,767

PIMCO Municipal Income Fund II Schedule of Investments

August 31, 2011 (unaudited) (continued)


Principal Amount (000s)			Credit Rating (Moody’s/S&P)	Value*
		North Dakota—0.3%
$	3,710	Stark Cnty. Healthcare Rev., Benedictine Living Communities,
		6.75%, 1/1/33	NR/NR	$	3,521,235


		Ohio—1.5%
		Buckeye Tobacco Settlement Financing Auth. Rev., Ser. A-2,
	1,865	5.75%, 6/1/34	Baa3/BB-		1,350,801
	500	5.875%, 6/1/47	Baa3/BB-		350,935
		Higher Educational Fac. Commission Rev.,
	550	Ashland Univ. Project, 6.25%, 9/1/24	Ba1/NR		563,271
	1,000	Univ. Hospital Health Systems, 6.75%, 1/15/39, Ser. 2009-A	A2/A		1,047,120
	7,500	Lorain Cnty. Hospital Rev., Catholic Healthcare, 5.375%, 10/1/30	A1/AA-		7,558,950
	500	Lorain Cnty. Port Auth. Rev., U.S. Steel Corp. Project,
		6.75%, 12/1/40	Ba2/BB		516,925
	1,000	Montgomery Cnty. Rev., Miami Valley Hospital, 6.25%, 11/15/39, Ser. A	Aa3/NR		1,034,880
	3,000	State Rev., Cleveland Clinic Health System, 5.50%, 1/1/39, Ser. B	Aa2/AA-		3,160,260

					15,583,142


		Oregon—0.2%
	1,000	Clackamas Cnty. Hospital Fac. Auth. Rev., Legacy Health System,
		5.50%, 7/15/35, Ser. A	A2/A+		1,035,380
	1,155	State Department of Administrative Services, CP,
		5.25%, 5/1/39, Ser. A	Aa2/AA		1,212,773

					2,248,153


		Pennsylvania—5.0%
		Cumberland Cnty. Municipal Auth. Rev., Messiah Village Project, Ser. A,
	750	5.625%, 7/1/28	NR/BBB-		687,690
	670	6.00%, 7/1/35	NR/BBB-		611,529
	3,250	Harrisburg Auth. Rev., Harrisburg Univ. of Science,
		6.00%, 9/1/36, Ser. B	NR/NR		2,889,803
		Higher Educational Facs. Auth. Rev.,
	850	Edinboro Univ. Foundation, 6.00%, 7/1/43	Baa3/BBB-		840,395
	400	Thomas Jefferson Univ., 5.00%, 3/1/40	A1/AA-		410,568
	500	Luzerne Cnty. Industrial Dev. Auth. Rev.,
		Pennsylvania American Water Co., 5.50%, 12/1/39	A2/A		526,670
		Montgomery Cnty. Higher Education & Health Auth. Rev.,
		Abington Memorial Hospital, Ser. A,
	5,000	5.125%, 6/1/27	NR/A		5,011,500
	3,750	5.125%, 6/1/32	NR/A		3,723,675
	8,500	Montgomery Cnty. Industrial Dev. Auth. Rev.,
		New Regional Medical Center, 5.375%, 8/1/38 (FHA)	Aa2/AA		8,757,125
	17,000	Philadelphia, GO, 5.25%, 12/15/32, Ser. A (AGM)	Aa3/AA+		17,527,000
	11,600	Philadelphia Hospitals & Higher Education Facs. Auth. Rev.,
		Temple Univ. Hospital, 6.625%, 11/15/23, Ser. A	Baa3/BBB		11,488,756
	500	Philadelphia Water Rev., 5.25%, 1/1/36, Ser. A	A1/A		514,645
	1,000	Westmoreland Cnty. Industrial Dev. Auth. Rev., Excela Health Project,
		5.125%, 7/1/30	A3/NR		976,910

					53,966,266


		Puerto Rico—0.9%
	10,000	Sales Tax Financing Corp. Rev., 5.25%, 8/1/41, Ser. C	A1/A+		9,969,500

PIMCO Municipal Income Fund II Schedule of Investments

August 31, 2011 (unaudited) (continued)


Principal Amount (000s)			Credit Rating (Moody’s/S&P)	Value*
		Rhode Island—4.8%
$	56,200	Tobacco Settlement Financing Corp. Rev., 6.25%, 6/1/42, Ser. A	Baa3/BBB	$	51,225,176


		South Carolina—1.4%
	1,000	Greenwood Cnty. Rev., Self Regional Healthcare, 5.375%, 10/1/39	A1/A+		1,004,830
		Jobs-Economic Dev. Auth. Rev.,
	500	Anmed Health, 5.50%, 2/1/38, Ser. B (AGC)	NR/AA+		517,160
	13,850	Bon Secours Health System, 5.625%, 11/15/30, Ser. B	A3/A-		13,696,542

					15,218,532


		Tennessee—0.7%
	1,750	Claiborne Cnty. Industrial Dev. Board Rev.,
		Lincoln Memorial Univ. Project, 6.625%, 10/1/39	NR/NR		1,851,132
	1,000	Johnson City Health & Educational Facs. Board Rev.,
		Mountain States Health Alliance, 6.00%, 7/1/38	Baa1/BBB+		1,024,650
	500	Sullivan Cnty. Health Educational & Housing Facs. Board Rev.,
		Wellmont Health Systems Project, 5.25%, 9/1/36, Ser. C	NR/BBB+		447,020
		Tennessee Energy Acquisition Corp. Rev.,
	3,000	5.00%, 2/1/23, Ser. C	Baa3/BBB		2,974,140
	700	5.25%, 9/1/21, Ser. A	Ba3/B		698,915
	700	5.25%, 9/1/22, Ser. A	Ba3/B		694,232

					7,690,089


		Texas—11.2%
	130	Aubrey Independent School Dist., GO, 5.50%, 2/15/33 (PSF-GTD)	Aaa/NR		136,536
	6,500	Brazos Cnty. Health Facs. Dev. Corp. Rev., 5.375%, 1/1/32	NR/A-		6,377,410
	2,500	Dallas Rev., Dallas Civic Center, 5.25%, 8/15/38 (AGC)	Aa3/AA+		2,612,075
		Harris Cnty. Cultural Education Facs. Finance Corp. Rev.,
		Texas Children’s Hospital Project,
	3,750	5.25%, 10/1/29	Aa2/AA		3,969,638
	12,700	5.50%, 10/1/39	Aa2/AA		13,159,613
	700	HFDC of Central Texas, Inc. Rev., Village at Gleannloch Farms,
		5.50%, 2/15/37, Ser. A	NR/NR		495,334
		North Harris Cnty. Regional Water Auth. Rev.,
	10,300	5.25%, 12/15/33	A1/A+		10,819,635
	10,300	5.50%, 12/15/38	A1/A+		10,919,133
		North Texas Tollway Auth. Rev.,
	5,250	4.75%, 1/1/29 (FGIC-NPFGC)	A2/A-		5,188,627
	1,300	5.50%, 9/1/41, Ser. A	NR/AA		1,407,991
	5,000	5.625%, 1/1/33, Ser. B	A2/A-		5,219,400
	1,200	5.75%, 1/1/33, Ser. F	A3/BBB+		1,206,192
	2,000	Sabine River Auth. Pollution Control Rev., 5.20%, 5/1/28, Ser. C	Ca/NR		611,780
	250	San Juan Higher Education Finance Auth. Rev., 6.70%, 8/15/40, Ser. A	NR/BBB		256,230
		State, Mobility Fund, GO (g),
	10,025	4.75%, 4/1/35, Ser. A	Aaa/AA+		10,212,367
	17,500	4.75%, 4/1/36	Aaa/AA+		17,895,850
	1,000	State Public Finance Auth. Rev. Charter School Finance Corp.,
		5.875%, 12/1/36, Ser. A	Baa3/BBB-		902,320
	8,880	State Turnpike Auth. Rev., 5.00%, 8/15/42, Ser. A (AMBAC)	Baa1/BBB+		8,124,845
	3,000	Tarrant Cnty. Cultural Education Facs. Finance Corp. Rev.,
		Baylor Health Care Systems Project, 6.25%, 11/15/29	Aa2/AA-		3,332,910
		Texas Municipal Gas Acquisition & Supply Corp. I Rev.,
	450	5.25%, 12/15/25, Ser. A	A2/A		429,696

PIMCO Municipal Income Fund II Schedule of Investments

August 31, 2011 (unaudited) (continued)


Principal Amount (000s)			Credit Rating (Moody’s/S&P)	Value*
		Texas (continued)
$	15,300	6.25%, 12/15/26, Ser. D	A2/A	$	15,770,169
	1,000	Wise Cnty. Rev., Parker Cnty. Junior College Dist., 8.00%, 8/15/34	NR/NR		1,043,780

					120,091,531


		Virginia—0.3%
	1,000	Fairfax Cnty. Industrial Dev. Auth. Rev., Inova Health Systems,
		5.50%, 5/15/35, Ser. A	Aa2/AA+		1,045,810
	1,000	Henrico Cnty. Economic Dev. Auth. Rev., Bon Secours Health System,
		4.50%, 11/1/42, Ser. B-1 (AGC)	Aa3/AA+		956,370
	2,050	James City Cnty. Economic Dev. Auth. Rev., United Methodist Homes,
		5.50%, 7/1/37, Ser. A	NR/NR		1,192,956

					3,195,136


		Washington—1.4%
		Health Care Facs. Auth. Rev.,
	1,300	Multicare Health Systems, 6.00%, 8/15/39, Ser. B (AGC)	Aa3/AA+		1,391,338
	1,000	Seattle Cancer Care Alliance, 7.375%, 3/1/38	A3/NR		1,100,270
	13,000	Virginia Mason Medical Center, 6.125%, 8/15/37, Ser. A	Baa2/BBB		12,907,570

					15,399,178


		West Virginia—0.2%
	2,000	Hospital Finance Auth. Rev., Highland Hospital, 9.125%, 10/1/41	NR/NR		2,086,040


		Wisconsin—0.1%
		Health & Educational Facs. Auth. Rev.,
	90	Froedert & Community Health, 5.375%, 10/1/30	NR/AA-		90,567
	1,000	Prohealth Care, Inc., 6.625%, 2/15/39	A1/A+		1,074,210

					1,164,777

		Total Municipal Bonds & Notes (cost—$1,017,224,238)			1,032,173,480


	VARIABLE RATE NOTES (e)—2.7%
		California—0.4%
	5,000	Health Facs. Financing Auth. Rev., 7.95%, 11/15/36, Ser. 3193 (a)(b)(d)	NR/NR		4,983,450


		Florida—0.2%
	1,830	Highlands Cnty. Health Facs. Auth. Rev., Adventist Health System,
		5.00%, 11/15/31, Ser. C	Aa3/AA-		1,842,243


		Illinois—1.0%
	6,000	Chicago, GO, 9.77%, 1/1/34, Ser. 3190 (a)(b)(d)	NR/NR		6,145,380
	5,000	State, GO, 8.10%, 4/1/27, Ser. 783 (AGC) (a)(b)(d)	Aa3/NR		5,046,350

					11,191,730


		Texas—0.9%
	3,335	JPMorgan Chase Putters/Drivers Trust Rev.,
		11.458%, 5/15/18, Ser. 3709 (a)(b)(d)	NR/AAA		4,007,736
	5,365	State, GO, 7.51%, 4/1/37, Ser. 3197 (a)(b)(d)	NR/NR		5,664,582

					9,672,318

PIMCO Municipal Income Fund II Schedule of Investments

August 31, 2011 (unaudited) (continued)


Principal Amount (000s)			Credit Rating (Moody’s/S&P)	Value*
		West Virginia—0.2%
$	2,000	Economic Dev. Auth. Rev., Appalachian Power, 5.375%, 12/1/38, Ser. A	Baa2/BBB	$	2,001,980

		Total Variable Rate Notes (cost—$29,167,245)			29,691,721


	SHORT-TERM INVESTMENTS—1.5%
	U.S. Treasury Obligations (f)(h)—1.5%
		U.S. Treasury Bills,
	15,693	0.002%-0.089%, 9/1/11-2/23/12 (cost—$15,692,384)			15,692,384


		Total Investments (cost—$1,062,083,867) (i)—100.0%		$	1,077,557,585

Notes to Schedule of Investments:

Portfolio securities and other financial instruments for which market quotations are readily available are stated at market value. Market value is generally determined on the basis of last reported sales prices, or if no sales are reported, on the basis of quotes obtained from a quotation reporting system, established market makers, or independent pricing services.

Portfolio securities and other financial instruments for which market quotations are not readily available, or for which a development/event occurs that may significantly impact the value of a security, are fair-valued, in good faith, pursuant to procedures established by the Board of Trustees, or persons acting at their discretion pursuant to procedures established by the Board of Trustees. The Fund’s investments are valued daily using prices supplied by an independent pricing service or dealer quotations, or by using the last sale price on the exchange that is the primary market for such securities, or the mean between the last quoted bid and ask price. Independent pricing services use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Short-term securities maturing in 60 days or less are valued at amortized cost, if their original term to maturity was 60 days or less, or by amortizing their value on the 61st day prior to maturity, if the original term to maturity exceeded 60 days.

The prices used by the Fund to value securities may differ from the value that would be realized if the securities were sold and these differences could be material. The Fund’s net asset value (“NAV”) is normally determined as of the close of regular trading (normally, 4:00 p.m. Eastern time) on the New York Stock Exchange (“NYSE”) on each day the NYSE is open for business.

(a)	Private Placement—Restricted as to resale and may not have a readily available market. Securities with an aggregate value of $32,269,785, representing 3.0% of total investments.

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

(c)	In default.

(d)	Inverse Floater—The interest rate shown bears an inverse relationship to the interest rate on another security or the value of an index. The interest rate disclosed reflects the rate in effect on August 31, 2011.

(e)

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 August 31, 2011.

(f)	All or partial amount segregated for the benefit of the counterparty as collateral for derivatives.

(g)	Residual Interest Bonds held in Trust—Securities represent underlying bonds transferred to a separate securitization trust established in a tender option bond transaction in which the Fund acquired the residual interest certificates. These securities serve as collateral in a financing transaction.

(h)	Rates reflect the effective yields at purchase date.

(i)

At August 31, 2011, the cost basis of investments for federal income tax purposes was $982,568,488. Gross unrealized appreciation was $50,114,426; gross unrealized depreciation was $33,294,057; and net unrealized appreciation was $16,820,369. The difference between book and tax cost was attributable to inverse floater transactions.

Glossary:

AGC—insured by Assured Guaranty Corp.

AGM—insured by Assured Guaranty Municipal Corp.

AMBAC—insured by American Municipal Bond Assurance Corp.

CP—Certificates of Participation

FGIC—insured by Financial Guaranty Insurance Co.

FHA—insured by Federal Housing Administration

GO—General Obligation Bond

GTD—Guaranteed

IBC—Insurance Bond Certificate

NPFGC—insured by National Public Finance Guarantee Corp.

NR—Not Rated

PSF—Public School Fund

WR—Withdrawn Rating

Other Investments:

(A) Interest rate swap agreements outstanding at August 31, 2011:


Swap Counterparty	Notional Amount (000s)		Termination Date		Rate Type					Market Value			Upfront Premiums Paid (Received)			Unrealized Depreciation
Swap Counterparty	Notional Amount (000s)		Termination Date		Payments Made			Payments Received		Market Value			Upfront Premiums Paid (Received)			Unrealized Depreciation
Citigroup	$	14,900		6/20/42		4.75	%		3-Month USD-LIBOR	$	(3,898,610	)	$	(311,800	)	$	(3,586,810	)
Goldman Sachs		9,900		6/20/42		4.75	%		3-Month USD-LIBOR		(2,590,352	)		78,210			(2,668,562	)
Morgan Stanley		18,400		6/20/42		4.75	%		3-Month USD-LIBOR		(4,814,391	)		294,400			(5,108,791	)

										$	(11,303,353	)	$	60,810		$	(11,364,163	)

LIBOR—London Inter-Bank Offered Rate

At August 31, 2011, the Fund held $815,000 in cash as collateral for derivatives. Cash collateral held may be invested in accordance with the Fund’s investment strategy.

Fair Value Measurements

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

•

Level 1—quoted prices in active markets for identical investments that the Fund has the ability to access

•

Level 2—valuations based on other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) or quotes from inactive exchanges

•

Level 3—valuations based on significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

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

The valuation techniques used by the Fund to measure fair value during the three months ended August 31, 2011 maximized the use of observable inputs and minimized the use of unobservable inputs.

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

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

U.S. Treasury Obligations—U.S. Treasury obligations are valued by independent pricing services based on pricing models that evaluate the mean between the most recently quoted bid and ask price. The models also take into consideration data received from active market makers and broker-dealers, yield curves, and the spread over comparable U.S. Treasury issues. The spreads change daily in response to market conditions and are generally obtained from the new issue market and broker-dealer sources. To the extent that these inputs are observable, the values of U.S. Treasury obligations are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

Interest Rate Swaps—Interest rate swaps are valued by independent pricing services using pricing models that are based on real-time intraday snapshots of relevant interest rate curves that are built using the most actively traded securities for a given maturity. The pricing models also incorporate cash and money market rates. In addition, market data pertaining to interest rate swaps is monitored regularly to ensure that interest rates are properly depicting the current market rate. To the extent that these inputs are observable, the values of interest rate swaps are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

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

A summary of the inputs used at August 31, 2011 in valuing the Fund’s assets and liabilities is listed below:


	Level 1— Quoted Prices		Level 2— Other Significant Observable Inputs			Level 3— Significant Unobservable Inputs		Value at 8/31/11
Investments in Securities—Assets
Municipal Bonds & Notes		—	$	1,032,173,480			—	$	1,032,173,480
Variable Rate Notes		—		29,691,721			—		29,691,721
U.S. Treasury Obligations		—		15,692,384			—		15,692,384

Total Investments in Securities—Assets		—	$	1,077,557,585			—	$	1,077,557,585

*Other Financial Instruments—Liabilities**
Interest Rate Contracts		—	$	(11,364,163	)		—	$	(11,364,163	)

Total Investments		—	$	1,066,193,422			—	$	1,066,193,422

*	Other financial instruments not reflected in the Schedule of Investments, such as swap agreements, are valued at the unrealized appreciation (depreciation) of the instrument.

There were no significant transfers between Levels 1 and 2 during the three months ended August 31, 2011.

Item 2. Controls and Procedures

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

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

Item 3. Exhibits

(a) Exhibit 99.302 Cert.—Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant: PIMCO Municipal Income Fund II



By		/s/ Brian S. Shlissel
		President & Chief Executive Officer
		Date: October 19, 2011

By		/s/ Lawrence G. Altadonna
		Treasurer, Principal Financial & Accounting Officer
		Date: October 19, 2011

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


By		/s/ Brian S. Shlissel
		President & Chief Executive Officer
		Date: October 19, 2011

By		/s/ Lawrence G. Altadonna
		Treasurer, Principal Financial & Accounting Officer
		Date: October 19, 2011