Edgar Filing: PIMCO MUNICIPAL INCOME FUND II

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	811-21076

PIMCO Municipal Income Fund II

(Exact name of registrant as specified in charter)


1345 Avenue of the Americas, New York,	New York 10105

(Address of principal executive offices)	(Zip code)

Lawrence G. Altadonna - 1345 Avenue of the Americas, New York, New York 10105

(Name and address of agent for service)


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


Date of fiscal year end:	May 31, 2009


Date of reporting period:	November 30, 2008

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

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

ITEM 1. REPORT TO SHAREHOLDERS



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





	Semi-Annual Report
	November 30, 2008


		Contents

		Letter to Shareholders		1

		Fund Insights/Performance & Statistics		2-4

		Schedules of Investments		5-23

		Statements of Assets and Liabilities		24

		Statements of Operations		25

		Statements of Changes in Net Assets		26-27

		Statement of Cash Flows		28

		Notes to Financial Statements		29-35

		Financial Highlights		36-38

		Matters Relating to the Trustees’ Consideration of the Investment Management and Portfolio Management Agreements		39-40

		Subsequent Events/Proxy Voting Policies & Procedures		41-43

		Annual Shareholder Meetings Results		44


PIMCO Municipal Income Funds II Letter to Shareholders

January 15, 2009

Dear Shareholder:

We are pleased to provide you with the semi-annual report for PIMCO Municipal Income Fund II, PIMCO California Municipal Income Fund II and PIMCO New York Municipal Income Fund II (collectively, the “Funds”) for the six-month period ended November 30, 2008.

Tight credit conditions and a global economic slowdown caused municipal bond prices to fall during the period. The Barclays Capital Municipal Bond Index returned (4.98)% while the Barclays Capital U.S. Aggregate Bond Index, a broad credit market measure of government and corporate securities, posted a positive 0.24% return. Stocks fared worse in the downturn. The Standard & Poor’s 500 Index returned (35.20)% for the period, among the worst periods on record for equities. The Federal Reserve (the “Fed”) sought to inject liquidity into the economy through multiple initiatives, including reducing the Federal Funds rate twice during the reporting period. The Fed moves lowered the key target rate on loans between banks from 2.00% to 1.00%.

In the coming weeks or months, we would expect the de-leveraging of the private sector to meet its counterpart in the leveraging of the federal government as it seeks to inject more than a trillion dollars of liquidity into the nation’s financial system. This initiative holds potential to restore stability and some relative safety to debt securities outside of the shortest-term government issues.

Subsequent to the six month period ended November 30, 2008, a decision to redeem a portion of each Fund’s Auction Rate Preferred Shares (“ARPS”) was made at the recommendation of the Fund’s investment manager and approved by the Board of Trustees. These redemptions were intended to increase and maintain asset coverage for each Fund’s ARPS above the 200% level, permitting the Funds to pay previously declared common share dividends and to declare and pay future common share dividends. Depending on market conditions, coverage ratios may increase or decrease further. With respect to each of the Funds, as of the date of this letter, all dividend payments which were postponed have been paid and all dividend declarations which were postponed have subsequently been declared.

For specific information on the Funds and their performance, please review the following pages. If you have any questions regarding the information provided, we encourage you to contact your financial advisor or call the Funds’ shareholder servicing agent at (800) 331-1710. In addition, a wide range of information and resources is available on our Web site, www.allianzinvestors.com/closedendfunds.

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

Sincerely,



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

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


PIMCO Municipal Income Fund II Fund Insights/Performance & Statistics
November 30, 2008 (unaudited)


•	For the six-month period ended November 30, 2008, PIMCO Municipal Income Fund II returned (38.16)% on net asset value and (41.34)% on market price, compared to (19.82)% and (27.73)%, respectively for the Lipper Analytical General Municipal Debt Funds Leveraged (the “Benchmark”) average.

•	Municipal bond yields increased across the curve in all but the shortest maturities during the six-month period ended November 30, 2008.

•	Duration hedging strategies significantly detracted from performance during the period. Thirty-year Treasury and London Interbank Offered Rate (“LIBOR”) swaps rallied significantly, while municipal rates increased as investors moved away from risky assets.

•	Municipal to Treasury yield ratios moved higher during the reporting period crossing all time high levels in September, while continuing higher in October and November, continually setting new records along the way. The 10-year ratio increased to 138% and 30-year ratio increased to 156%.

•	Exposure to corporate backed munis detracted from performance as this sector underperformed during the period due to continued stress in the corporate sector.

•	Tobacco securitization sector holdings detracted from performance as muni investors continue to focus demand on the highest quality sectors of the market while avoiding lower quality higher yielding securities such as tobacco bonds.

•	Exposure to zero coupon municipals detracted from performance as their longer durations caused underperformance as rates moved higher during the reporting period, especially in the longer maturity portion of the yield curve. The Barclays Capital Zero Coupon Index returned (15.16)% for the six-month period ended November 30, 2008.

•	The Fund was generally positioned with a significant portion of its exposure in longer dated maturities due to the attractiveness of that portion of the curve. This detracted from performance as the muni curve steepened significantly during the period with longer rates increasing and most investors buying in the shorter maturity portion of the curve. The 15-, 20-, and 30-year maturity AAA General Obligation yields increased by 72, 80, and 87 basis points respectively while the two-year yield decreased by 13 basis points.

•	Long Municipals significantly underperformed Long Treasuries and also underperformed the taxable debt sector during the period as investors moved out of risky assets into Treasuries due to market volatility and continued uncertainty. The Barclays Capital Long Municipal Bond Index returned (14.77)% while the Long Government/Credit and the Long Barclays Capital Treasury Indices returned (1.36)% and 13.61%, respectively.

•	Municipal bond issuance remains at increased levels; although there has been a slow down in the furious pace of the first half of the year beginning in September. Although issuance has been stalled somewhat, municipalities have picked up their issuance again in order to meet upcoming funding needs. During the six-month period, issuance totaled over $367.7 billion compared to $400.42 billion for the same period a year ago.


Total Return⁽¹⁾:	Market Price		Net Asset Value (“NAV”)

Six Months	(41.34	)%	(38.16	)%

1 Year	(37.85	)%	(38.63	)%

5 Year	(4.52	)%	(5.01	)%

Commencement of Operations (6/28/02) to 11/30/08	(3.31	)%	(2.13	)%

Common Share Market Price/NAV Performance:

Commencement of Operations (6/28/02) to 11/30/08

(LINE GRAPH)


Market Price/NAV:

Market Price	$	8.00

NAV	$	8.30

Discount to NAV		(3.61	)%

Market Price Yield⁽²⁾		9.75	%

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

(1) Past performance is no guarantee of future results. Returns are calculated by determining the percentage change in net asset value or market share price (as applicable) in the period covered. The calculation assumes that all of the Fund’s income dividends and capital gain distributions have been reinvested. Total return does not reflect broker commissions or sales charges. Total return for a period of less than one year is not annualized. Total return for a period of more than one year represents the average annual total return.

The Fund’s performance at market price will differ from its results at NAV. Although market price returns typically reflect investment results over time, during shorter periods returns at market price can also be influenced by factors such as changing views about the Fund, market conditions, supply and demand for the Fund’s shares, or changes in Fund distributions.

An investment in the Fund involves risk, including the loss of principal. Total return, market price, market 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. 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 equal to total assets attributable to common shareholders less total liabilities divided by the number of common shares outstanding. Holdings are subject to change daily.

(2) Market Price Yield is determined by dividing the annualized current monthly per share dividend (comprised from net investment income) payable to common shareholders by the market price per common share at November 30, 2008.

2 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.08


PIMCO California Municipal Income Fund II Fund Insights/Performance & Statistics
November 30, 2008 (unaudited)


•	For the six-month period ended November 30, 2008, PIMCO California Municipal Income Fund II returned (42.32)% on net asset value and (52.98)% on market price, compared to (52.96)% and (30.07)%, respectively for the Lipper California Municipal Debt Funds—Leveraged (the “Benchmark”) average.

•	Municipal bond yields increased across the curve in all but the shortest maturities during the six-month period ended November 30, 2008.

•	Duration hedging strategies significantly detracted from performance during the reporting period. Thirty-year Treasury and London Interbank Offered Rate (“LIBOR”) swaps rallied significantly, while municipal rates increased as investors moved away from risky assets.

•	Municipal to Treasury yield ratios moved higher during the period crossing all time high levels in September, while continuing higher in October and November, continually setting new records along the way. The 10-year ratio increased to 138% and 30-year ratio increased to 156%.

•	Exposure to hospital related munis detracted from performance as this sector underperformed the national market during the period.

•	Tobacco securitization sector holdings detracted from Fund performance as muni investors continue to focus demand on the highest quality sectors of the market while avoiding lower quality higher yielding securities such as tobacco bonds.

•	Exposure to zero coupon municipals detracted from Fund performance as their longer durations caused underperformance as rates moved higher during the period, especially in the longer maturity portion of the yield curve. The Barclays Capital Zero Coupon Index returned (15.16)% for the six-month period ended November 30, 2008.

•	Long Municipals significantly underperformed Long Treasuries and also underperformed the taxable debt sector during the period as investors moved out of risky assets into Treasuries due to market volatility and continued uncertainty. The Barclays Capital Long Municipal Bond Index returned (14.17)% while the Long Government/Credit and the Long Barclays Capital Treasury Indices returned (1.36)% and 13.61%, respectively.

•	Municipal bond issuance remains at increased levels; although we have seen a slow down in the furious pace of the first half of the year beginning in September. Although issuance has been stalled somewhat, municipalities have picked up their issuance again in order to meet upcoming funding needs. During the six-month period, issuance totaled over $367.7 billion compared to $400.42 billion for the same period a year ago.

•	Municipal bonds within California underperformed the Barclays Capital Municipal Bond Index returning (6.33)% and (4.98)%, respectively for the period. Year-to-date, California continues to lead all other states in new issue volume. The state’s issuance has decreased 20% from the same period last year to $51.6 billion.

•	The Fund was generally positioned with a significant portion of its exposure in longer dated maturities due to the attractiveness of that portion of the curve. This detracted from performance as long muni rates increased during this period. The shape of the California State AAA insured municipal yield curve steepened during the reporting period. Five-year maturity yields increased 26 basis points, 10-year yields increased 75 basis points, and 30-year yields increased 140 basis points.


Total Return⁽¹⁾:	Market Price		Net Asset Value (“NAV”	)

Six Months	(52.98	)%	(42.32	)%

1 Year	(51.12	)%	(42.63	)%

5 Year	(8.41	)%	(6.36	)%

Commencement of Operations (6/28/02) to 11/30/08	(6.54	)%	(3.80	)%

Common Share Market Price/NAV Performance:

Commencement of Operations (6/28/02) to 11/30/08

(LINE GRAPH)


Market Price/NAV:

Market Price	$	6.44

NAV	$	7.42

Discount to NAV		(13.21	)%

Market Price Yield⁽²⁾		13.04	%

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

(1) Past performance is no guarantee of future result. Returns are calculated by determining the percentage change in net asset value or market share price (as applicable) in the period covered. The calculation assumes that all of the Fund’s income dividends and capital gain distributions have been reinvested. Total return does not reflect broker commissions or sales charges. Total return for a period of less than one year is not annualized. Total return for a period of more than one year represents the average annual total return.

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


PIMCO New York Municipal Income Fund II Fund Insights/Performance & Statistics
November 30, 2008 (unaudited)


•	For the six-month period ended November 30, 2008, PIMCO New York Municipal Income Fund II returned (32.61)% on net asset value and (41.51)% on market price, compared to (41.54)% and (32.08)%, respectively for the Lipper New York Municipal Debt Funds—Leveraged (the “Benchmark”) average.

•	Municipal bond yields increased across the curve in all but the shortest maturities during the six-month reporting period ended November 30, 2008.

•	Duration hedging strategies significantly detracted from performance during the period. Thirty-year Treasury and London Interbank Offered Rate (“LIBOR”) swaps rallied significantly, while municipal rates increased as investors moved away from risky assets.

•	Municipal to Treasury yield ratios moved higher during the period crossing all time high levels in September, while continuing higher in October and November, continually setting new records along the way. The 10-year ratio increased to 138% and 30-year ratio increased to 156%.

•	Exposure to hospital related munis detracted from performance as this sector underperformed the national market during the period.

•	Tobacco securitization sector holdings detracted from performance as muni investors continue to focus demand on the highest quality sectors of the market while avoiding lower quality higher yielding securities such as tobacco bonds.

•	Exposure to zero coupon municipals detracted from performance as their longer durations caused underperformance as rates moved higher during the period, especially in the longer maturity portion of the yield curve. The Barclays Capital Zero Coupon Index returned (15.16)% for the six-month period ended November 30, 2008.

•	Long Municipals significantly underperformed Long Treasuries and also underperformed the taxable debt sector during the period as investors moved out of risky assets into Treasuries due to market volatility and continued uncertainty. The Barclays Capital Long Municipal Bond Index returned (14.77)% while the Long Government/Credit and the Long Barclays Capital Treasury Indices returned (1.36)% and 13.61%, respectively.

•	Municipal bond issuance remains at increased levels; although we have seen a slow down in the furious pace of the first half of the year beginning in September. Although issuance has been stalled somewhat, municipalities have picked up their issuance again in order to meet upcoming funding needs. During the six-month period, issuance totaled over $367.7 billion compared to $400.42 billion for the same period a year ago.

•	Municipal bonds within New York performed in-line with the Barclays Capital Municipal Bond Index returning (4.94)% and (4.98)%, respectively for the period. Year-to-date, issuers in New York State have issued $38.1 billion in bonds, 37.5% higher than the same period last year. New York now ranks second among states in terms of issuance.

•	The Fund was generally positioned with a significant portion of its exposure in longer dated maturities due to the attractiveness of that portion of the curve. This detracted from performance as long muni rates increased over this period. The shape of the New York Insured AAA municipal yield curve steepened during the period. Five-year maturity AAA credits increased 17 basis points, 10-year maturities increased 57 basis points, and 30-year maturities increased 105 basis points.


Total Return⁽¹⁾:	Market Price		Net Asset Value (“NAV”	)

Six Months	(41.51	)%	(32.61	)%

1 Year	(36.40	)%	(32.32	)%

5 Year	(4.38	)%	(3.30	)%

Commencement of Operations (6/28/02) to 11/30/08	(3.25	)%	(1.20	)%

Common Share Market Price/NAV Performance:

Commencement of Operations (6/28/02) to 11/30/08

(LINE GRAPH)


Market Price/NAV:

Market Price	$	8.14

NAV	$	8.92

Discount to NAV		(8.74	)%

Market Price Yield⁽²⁾		9.77	%

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

4 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.08


PIMCO Municipal Income Fund II Schedule of Investments
November 30, 2008 (unaudited)




Principal Amount (000)			Credit Rating (Moody’s/S&P)		Value

MUNICIPAL BONDS & NOTES—92.7%
		Alabama—2.4%
$	10,000	Birmingham Baptist Medical Centers Special Care Facs.
		Financing Auth. Rev., 5.00%, 11/15/30, Ser. A		Baa1/NR		$ 6,781,000
	1,750	Huntsville Health Care Auth. Rev.,
		5.75%, 6/1/32, Ser. B, (Pre-refunded @ $101, 6/1/12) (c)		A2/NR		1,939,070
	13,580	Jefferson Cnty. Sewer Rev.,
		4.75%, 2/1/38, Ser. B, (Pre-refunded @ $100,
		8/1/12) (FGIC)(c)		Aaa/AAA		14,519,329
		Montgomery BMC Special Care Facs. Financing Auth.
		Rev. (MBIA),
	1,235	5.00%, 11/15/29, Ser. B		A3/AA		1,073,832
	2,200	Baptist Health, 5.00%, 11/15/24		A3/AA		2,185,612
	2,650	Tuscaloosa Educational Building Auth. Rev., Stillman College,
		5.00%, 6/1/26		NR/BBB-		1,854,126

						28,352,969

		Alaska—0.5%
	5,900	Northern Tobacco Securitization Corp. Rev.,
		5.00%, 6/1/46, Ser. A		Baa3/NR		3,280,872
	3,550	State Housing Finance Corp. Rev., 5.25%, 6/1/32,
		Ser. C (MBIA)		Aa2/AA		3,033,865

						6,314,737

		Arizona—6.6%
		Health Facs. Auth. Rev.,
	6,500	Beatitudes Project, 5.20%, 10/1/37		NR/NR		3,940,755
	1,300	Hospital System, 5.75%, 12/1/32, (Pre-refunded @ $101,
		12/1/12) (c)		NR/BBB		1,447,251
		Pima Cnty. Industrial Dev. Auth. Rev.,
	3,500	Center for Academic Success, 5.50%, 7/1/37 (a)(d)		NR/BBB-		2,378,880
	29,700	Correctional Facs., 5.00%, 9/1/39		Aa2/AA		25,572,294
	41,100	Salt River Project Agricultural Improvement & Power Dist. Rev.,
		5.00%, 1/1/37, Ser. A (h)		Aa1/AA		37,234,956
	10,500	Salt Verde Financial Corp. Rev., 5.00%, 12/1/37		Aa3/AA-		6,725,145

						77,299,281

		Arkansas—0.1%
	13,000	Arkansas Dev. Finance Auth. Rev., zero coupon, 7/1/46,
		(AMBAC)		Aa3/NR		1,292,460

		California—4.9%
	9,610	Alameda Corridor Transportation Auth. Rev.,
		zero coupon, 10/1/16, Ser. A (AMBAC)		A3/AA		6,685,389
		Golden State Tobacco Securitization Corp. Rev., Ser. A-1,
	6,000	5.00%, 6/1/33,		Baa3/BBB		3,763,560
	9,000	6.75%, 6/1/39, (Pre-refunded @ $100, 6/1/13) (c)		NR/AAA		10,287,090
		State, GO,
	28,600	5.00%, 11/1/37 (h)		A1/A+		23,822,084
	9,550	5.00%, 12/1/37		A1/A+		7,954,099

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


PIMCO Municipal Income Fund II Schedule of Investments
November 30, 2008 (unaudited)




Principal Amount (000)			Credit Rating (Moody’s/S&P)		Value

		California—(continued)
$	4,700	Statewide Community Dev. Auth. Rev., Baptist Univ.,
		9.00%, 11/1/17, Ser. B (a)(d)		NR/NR		$ 4,335,609

						56,847,831

		Colorado—4.9%
	11,250	Denver City & Cnty. Rev., 5.00%, 11/15/25, Ser. B (FSA)		Aaa/AAA		10,363,725
		E-470 Public Highway Auth. Rev., Ser. B (MBIA),
	20,000	zero coupon, 9/1/35		Baa1/AA		2,647,600
	15,000	zero coupon, 9/1/37		Baa1/AA		1,708,050
		Health Facs. Auth. Rev.,
	1,000	American Baptist Homes, 5.90%, 8/1/37, Ser. A		NR/NR		666,240
	25,000	Catholic Health Initiatives, 5.50%, 3/1/32		NR/AA		25,669,000
	18,305	Exempla, Inc., 5.625%, 1/1/33, Ser. A		A1/A-		14,808,928
	2,000	Housing & Finance Auth. Rev., Evergreen Country Day School,
		5.875%, 6/1/37 (a)(d)		NR/BB		1,403,220

						57,266,763

		Florida—3.4%
	2,310	Dev. Finance Corp. Rev., Learning Gate Community School,
		6.00%, 2/15/37		NR/BBB-		1,683,805
	2,335	Hillsborough Cnty. Industrial Dev. Auth. Pollution Control Rev.,
		Tampa Electric Co., 5.50%, 10/1/23		Baa2/BBB-		1,980,524
	7,135	Jacksonville Health Facs. Auth. Rev., 5.25%, 11/15/32, Ser. A		Aa1/AA		6,078,949
	3,000	Leesburg Hospital Rev., Leesburg Regional Medical Center
		Project, 5.50%, 7/1/32		Baa1/BBB+		2,207,280
		Orange Cnty. Health Facs. Auth. Rev., Adventist Health
		System,
	2,550	5.625%, 11/15/32, (Pre-refunded @ $101, 11/15/12) (c)		NR/NR		2,824,252
	5,000	6.25%, 11/15/24, (Pre-refunded @ $100, 11/15/12) (c)		NR/NR		5,608,900
	500	Sarasota Cnty. Health Fac. Auth. Rev., 5.75%, 7/1/37		NR/NR		325,045
	6,205	State Governmental Utility Auth. Rev., Barefoot Bay Utilities
		System, 5.00%, 10/1/29 (AMBAC)		Baa1/NR		5,610,747
	5,000	Sumter Landing Community Dev. Dist. Rev.,
		4.75%, 10/1/35, Ser. A (MBIA)		Baa1/AA		4,017,500
	10,000	Tallahassee Rev., 5.00%, 10/1/37, Ser. 2617 (h)		Aa2/AA		9,080,300
	1,500	Winter Springs Water & Sewer Rev., zero coupon,
		10/1/29 (MBIA-FGIC)		NR/AA		453,195

						39,870,497

		Georgia—0.6%
	2,775	Medical Center Hospital Auth. Rev., 5.25%, 7/1/37		NR/NR		1,693,055
	9,600	Richmond Cnty. Dev. Auth. Rev., zero coupon, 12/1/21		Aaa/NR		4,951,776

						6,644,831

		Hawaii—1.4%
	19,170	Honolulu City & Cnty. Wastewater System Rev., First Board
		Resolution, 4.75%, 7/1/28 (MBIA-FGIC)		Aa3/NR		17,097,148

		Illinois—19.1%
		Central Lake Cnty. JT Action Water Agcy. Rev., Ser. A (AMBAC),
	2,935	5.125%, 5/1/28		Aa3/NR		2,894,057
	675	5.125%, 5/1/28 (Pre-refunded @ $100, 11/1/12) (c)		Aa3/NR		741,670

6 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.08


PIMCO Municipal Income Fund II Schedule of Investments
November 30, 2008 (unaudited)




Principal Amount (000)			Credit Rating (Moody’s/S&P)		Value

		Illinois—(continued)
		Chicago, GO (FGIC),
$	1,635	5.125%, 1/1/29, Ser. A		Aa3/AAA		$ 1,536,377
	4,065	5.50%, 1/1/40		Aa3/AA-		3,912,725
		Chicago, Lake Shore East, Special Assessment,
	3,162	6.625%, 12/1/22		NR/NR		2,740,063
	6,700	6.75%, 12/1/32		NR/NR		5,438,323
		Chicago Board of Education School Reform, GO (MBIA-FGIC),
	15,535	zero coupon, 12/1/16, Ser. A		A1/AA		10,599,064
	5,000	zero coupon, 12/1/28, Ser. A		A1/AA		1,370,600
	4,500	zero coupon, 12/1/31		A1/AA		988,065
		Chicago City Colleges, GO (FGIC),
	32,670	zero coupon, 1/1/37		Aa3/AA		5,262,157
	29,145	zero coupon, 1/1/38		Aa3/AA		4,374,082
	32,670	zero coupon, 1/1/39		Aa3/AA		4,566,939
	5,000	Cicero, GO, 5.25%, 12/1/31 (MBIA)		Baa1/AA		4,831,650
	6,440	Cook Cnty., GO, 5.00%, 11/15/28, Ser. A (MBIA-FGIC)		Aa2/AA		6,112,461
		Finance Auth. Rev.,
	2,500	Christian Homes, Inc., 5.75%, 5/15/31, Ser. A		NR/NR		1,690,300
	250	Leafs Hockey Club, 6.00%, 3/1/37, Ser. A		NR/NR		168,825
		Regency Park,
	10,000	zero coupon, 7/15/23		NR/AAA		4,628,800
	122,650	zero coupon, 7/15/25		NR/AAA		49,386,249
	1,500	Sedgebrook, Inc., 6.00%, 11/15/42, Ser. A		NR/NR		1,009,380
		Health Facs. Auth. Rev,
	5,000	Condell Medical Center, 5.50%, 5/15/32		Baa3/NR		3,524,200
	20,100	Elmhurst Memorial Healthcare, 5.625%, 1/1/28		Baa1/NR		16,554,762
		Hillside, Tax Allocation, Mannheim Redev. Project,
	4,500	6.55%, 1/1/20		NR/NR		3,895,200
	2,900	7.00%, 1/1/28		NR/NR		2,353,002
		Metropolitan Pier & Exposition Auth. Rev. (MBIA),
	60,000	zero coupon, 12/15/30		A1/AAA		15,037,800
	50,000	zero coupon, 12/15/33		A1/AAA		10,106,500
	2,460	zero coupon, 6/15/38		A1/AAA		362,506
	68,470	State Sports Facs. Auth. Rev. zero coupon, 6/15/30
		(converts to 5.50% on 6/16/10) (AMBAC)		Baa1/AA		58,689,060

						222,774,817

		Indiana—0.1%
	4,125	Fort Wayne Pollution Control Rev., 6.20%, 10/15/25		Caa3/CCC+		613,883
	990	Vigo Cnty. Hospital Auth. Rev., 5.80%, 9/1/47 (a)(d)		NR/NR		633,095

						1,246,978

		Iowa—3.8%
		Finance Auth. Rev.,
		Deerfield Retirement Community,
	250	5.50%, 11/15/27, Ser. A		NR/NR		153,868
	1,075	5.50%, 11/15/37		NR/NR		604,343
	4,500	Edgewater LLC, 6.75%, 11/15/42		NR/NR		3,276,810
	1,000	Wedum Walnut Ridge LLC, 5.625%, 12/1/45, Ser. A		NR/NR		570,230

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


PIMCO Municipal Income Fund II Schedule of Investments
November 30, 2008 (unaudited)




Principal Amount (000)			Credit Rating (Moody’s/S&P)		Value

		Iowa—(continued)
		Tobacco Settlement Auth. of Iowa Rev., Ser. B,
$	46,000	5.60%, 6/1/34,		Baa3/BBB		$ 32,240,480
	7,050	5.60%, 6/1/35, (Pre-refunded @ $101, 6/1/11) (c)		NR/AAA		7,626,972

						44,472,703

		Kansas—0.3%
	2,800	Univ. of Kansas Hospital Auth. Rev.,
		5.625%, 9/1/32, (Pre-refunded @ $100, 9/1/12) (c)		NR/AAA		3,109,736

		Kentucky—0.2%
	2,500	Economic Dev. Finance Auth. Rev., Hospital Facs. Rev.,
		Catholic Healthcare Partners, 5.25%, 10/1/30		A1/AA-		2,153,875

		Louisiana—4.8%
		Public Facs. Auth. Rev., Ochsner Clinic Foundation, Ser. B,
	20,400	5.50%, 5/15/32, (Pre-refunded @ $100, 5/15/26) (c)		Aaa/NR		21,651,132
	3,300	5.50%, 5/15/47		A3/NR		2,424,147
	44,395	Tobacco Settlement Financing Corp. Rev., 5.875%,
		5/15/39, Ser. B		Baa3/BBB		32,175,276

						56,250,555

		Maryland—0.3%
		Health & Higher Educational Facs. Auth. Rev.,
	1,010	5.30%, 1/1/37		NR/NR		543,370
	4,050	6.00%, 1/1/43		NR/BBB-		2,878,173
	1,000	Adventist Healthcare, 5.75%, 1/1/25, Ser. A		Baa2/NR		796,060

						4,217,603

		Massachusetts—6.1%
	7,000	Boston Rev., 5.00%, 11/1/28, Ser. D (MBIA-FGIC)		Aa2/AA+		6,776,700
	4,610	Dev. Finance Agcy. Rev., 6.75%, 10/15/37, Ser. A		NR/NR		3,291,632
	12,050	State Water Res. Auth. Rev., 4.75%, 8/1/37, Ser. A (FSA)(h)		Aaa/AAA		10,171,526
		State Turnpike Auth. Rev., Ser. A,
	4,295	4.75%, 1/1/34 (AMBAC)		Baa1/AA		3,262,997
	51,830	5.00%, 1/1/37 (MBIA)		Baa1/AA		40,473,529
	10,325	5.00%, 1/1/39 (AMBAC)		Baa1/AA		7,924,954

						71,901,338

		Michigan—2.2%
	4,545	Garden City Hospital Finance Auth. Rev., 5.00%,
		8/15/38, Ser. A		NR/NR		2,495,614
	800	Public Educational Facs. Auth. Rev., 6.50%, 9/1/37 (a)(d)		NR/BBB-		610,352
	500	Star International Academy, CP, 6.125%, 3/1/37		NR/BB+		355,790
		State Hospital Finance Auth. Rev.,
	5,000	Ascension Health, 5.25%, 11/15/26, Ser. B		Aa1/AA		4,456,900
		Oakwood Group, Ser. A,
	13,500	5.75%, 4/1/32		A2/A		11,397,780
	1,925	6.00%, 4/1/22		A2/A		1,863,131
	6,000	Tobacco Settlement Finance Auth. Rev., 6.00%, 6/1/48, Ser. A		NR/BBB		3,828,540

						25,008,107

		Minnesota—0.5%
	1,300	Meeker Cnty. Rev., 5.75%, 11/1/37		NR/NR		903,760
	1,500	Minneapolis Rev., Providence Project, 5.75%, 10/1/37, Ser. A		NR/NR		965,745

8 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.08


PIMCO Municipal Income Fund II Schedule of Investments
November 30, 2008 (unaudited)




Principal Amount (000)			Credit Rating (Moody’s/S&P)		Value

		Minnesota—(continued)
$	280	Minneapolis, Tax Allocation, Grant Park Project, 5.35%, 2/1/30		NR/NR		$ 191,962
		North Oaks Presbyterian Homes Rev.,
	2,640	6.00%, 10/1/33		NR/NR		1,931,741
	1,530	6.125%, 10/1/39		NR/NR		1,109,724
	500	Oronoco Multifamily Housing Rev., 5.40%, 6/1/41		NR/NR		300,265

						5,403,197

		Mississippi—0.3%
	3,605	Business Finance Corp., Pollution Control Rev., 5.875%, 4/1/22		Ba1/BBB		2,851,014
	740	Dev. Bank Special Obligation Projects & Equipment
		Acquisitions Rev., 5.00%, 7/1/24 (AMBAC)		Baa1/AA		637,421

						3,488,435

		Missouri—0.3%
	2,600	Branson Regional Airport Transportation Dev. Dist. Rev.,
		6.00%, 7/1/37, Ser. A		NR/NR		1,679,392
	740	Hanley Road & North of Folk Ave. Transportation Dist. Rev.,
		5.00%, 10/1/25		NR/NR		542,028
	1,500	St. Louis Parking Rev., Downtown Parking Facs.,
		6.00%, 2/1/28, (Pre-refunded @ $100, 2/1/12) (c)		NR/NR		1,646,085

						3,867,505

		Nevada—0.2%
	1,450	Clark Cnty., GO, 5.00%, 6/1/31 (FGIC)		Aa1/AA+		1,332,550
	1,620	State, GO, 5.00%, 5/15/28 (FGIC)		Aa1/AAA		1,475,302

						2,807,852

		New Hampshire—0.3%
		Health & Education Facs. Auth. Rev., Catholic Medical Center,
	360	6.125%, 7/1/32		Baa1/BBB+		263,232
	2,640	6.125%, 7/1/32, (Pre-refunded @ $101, 7/1/12) (c)		Baa1/BBB+		3,003,317

						3,266,549

		New Jersey—2.4%
	950	Burlington Cnty. Bridge Commission Rev., 5.625%, 1/1/38		NR/NR		627,437
		Economic Dev. Auth. Rev.,
		Arbor Glen,
	525	6.00%, 5/15/28		NR/NR		402,775
	225	6.00%, 5/15/28, Ser. A, (Pre-refunded @ $102, 5/15/09) (c)		NR/NR		234,412
		Kapkowski Road Landfill, Special Assessment,
	4,000	5.75%, 10/1/21		Baa3/NR		3,461,920
	11,405	5.75%, 4/1/31		Baa3/NR		8,905,138
	1,100	Seabrook Village, 5.25%, 11/15/36		NR/NR		665,885
		Health Care Facs. Financing Auth. Rev.,
	1,500	St. Peters Univ. Hospital, 5.75%, 7/1/37		Baa2/BBB-		1,113,615
	1,830	Trinitas Hospital, 5.25%, 7/1/30, Ser. A		Baa3/BBB-		1,290,607
	3,500	State Educational Facs. Auth. Rev.,
		Fairfield Dickinson Univ., 6.00%, 7/1/25, Ser. D		NR/NR		2,805,810
		Tobacco Settlement Financing Corp. Rev.,
	13,150	5.00%, 6/1/41, Ser. 1A		Baa3/BBB		7,361,107

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


PIMCO Municipal Income Fund II Schedule of Investments
November 30, 2008 (unaudited)




Principal Amount (000)			Credit Rating (Moody’s/S&P)		Value

		New Jersey—(continued)
$	1,285	6.00%, 6/1/37, (Pre-refunded @ $100, 6/1/12) (c)		Aaa/AAA		$ 1,438,712

						28,307,418

		New Mexico—0.3%
	5,000	Farmington Pollution Control Rev., 5.80%, 4/1/22		Baa3/BB+		3,924,750

		New York—1.0%
	1,200	Erie Cnty. Industrial Dev. Agcy., Orchard Park Rev., 6.00%,
		11/15/36		NR/NR		800,880
	10,000	Liberty Dev. Corp. Rev., 5.25%, 10/1/35 (h)		Aa3/AA-		7,156,000
	1,100	Nassau Cnty. Industrial Dev. Agcy. Rev., Amsterdam at
		Harborside, 6.70%, 1/1/43, Ser. A		NR/NR		832,777
	2,830	New York City Municipal Water Finance Auth. Rev.,
		5.00%, 6/15/37, Ser. D (h)		NR/AAA		2,562,706

						11,352,363

		North Carolina—0.1%
		Medical Care Commission Rev.,
	550	Salemtowne, 5.10%, 10/1/30		NR/NR		339,587
	1,000	Village at Brookwood, 5.25%, 1/1/32		NR/NR		637,210

						976,797

		North Dakota—0.2%
	3,710	Stark Cnty. Healthcare Rev., Benedictine Living Communities,
		6.75%, 1/1/33		NR/NR		2,761,613

		Ohio—0.6%
	7,500	Lorain Cnty. Hospital Rev., Catholic Healthcare, 5.375%, 10/1/30		A1/AA-		6,571,950

		Pennsylvania—5.3%
		Allegheny Cnty. Hospital Dev. Auth. Rev.,
	22,600	5.375%, 11/15/40, Ser. A		Ba3/BB		12,740,298
	470	9.25%, 11/15/15, Ser. B, (Pre-refunded @ $102, 11/15/10) (c)		Ba3/AAA		529,314
	1,000	9.25%, 11/15/22, Ser. B, (Pre-refunded @ $102, 11/15/10) (c)		Ba3/AAA		1,142,980
	5,700	9.25%, 11/15/30, Ser. B, (Pre-refunded @ $102, 11/15/10) (c)		Ba3/AAA		6,514,986
		Cumberland Cnty. Auth., Retirement Community Rev.,
		Messiah Village, Ser. A,
	750	5.625%, 7/1/28		NR/BBB-		556,252
	670	6.00%, 7/1/35		NR/BBB-		498,333
	4,500	Wesley Affiliated Services,
		7.25%, 1/1/35, Ser. A, (Pre-refunded @ $101, 1/1/13) (c)		NR/NR		5,253,525
	3,250	Harrisburg Auth. Rev., 6.00%, 9/1/36		NR/NR		2,367,235
		Montgomery Cnty. Higher Education & Health Auth. Hospital Rev.,
		Abington Memorial Hospital, Ser. A,
	5,000	5.125%, 6/1/27		NR/A		4,052,150
	3,750	5.125%, 6/1/32		NR/A		2,858,175
	11,600	Philadelphia Hospitals & Higher Education Facs. Auth.
		Hospital Rev.,
		Temple Univ. Hospital, 6.625%, 11/15/23, Ser. A		Baa3/BBB		9,449,012
	17,000	Philadelphia, GO, 5.25%, 12/15/32, Ser. A (FSA)		Aaa/AAA		15,260,390
	500	Pittsburgh & Allegheny Cntys. Public Auditorium Auth. Rev.,
		5.00%, 2/1/29 (AMBAC)		Baa1/AA		469,155

						61,691,805

10 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.08


PIMCO Municipal Income Fund II Schedule of Investments
November 30, 2008 (unaudited)




Principal Amount (000)			Credit Rating (Moody’s/S&P)		Value

		Rhode Island—4.8%
$	76,200	Tobacco Settlement Financing Corp. Rev., 6.25%, 6/1/42, Ser. A		Baa3/BBB		$ 56,094,630

		South Carolina—3.0%
		Jobs-Economic Dev. Auth. Rev., Bon Secours,
	13,850	5.625%, 11/15/30		A3/A-		11,467,938
	3,770	5.625%, 11/15/30, (Pre-refunded @ $100, 11/15/12) (c)		A3/A-		4,201,439
		Lexington Cnty. Health Services Dist. Hospital Rev.,
	10,800	5.50%, 11/1/32, (Pre-refunded @ $100, 11/1/13) (c)		A2/A+		12,113,172
	3,400	5.50%, 5/1/37, (Pre-refunded @ $100, 5/1/14) (c)		A2/A+		3,836,016
	3,250	Tobacco Settlement Rev. Management Auth. Rev.,
		6.375%, 5/15/28, Ser. B, (Pre-refunded @ $101, 5/11/15) (c)		Baa3/BBB		3,492,580

						35,111,145

		Tennessee—0.5%
	3,000	Energy Acquisition Corp. Rev., 5.00%, 2/1/23, Ser. C		Baa1/AA-		2,020,980
	3,750	Knox Cnty. Health Educational & Housing Facs. Board Rev.,
		5.25%, 10/1/30		A1/AA-		3,230,775
	500	Sullivan Cnty. Health Educational & Housing Facs. Rev.,
		5.25%, 9/1/36, Ser. C		NR/BBB+		324,370

						5,576,125

		Texas—9.1%
	10	Arlington Independent School Dist., GO, 5.00%,
		2/15/24 (PSF-GTD)		Aaa/NR		10,000
		Aubrey Independent School Dist., GO (PSF-GTD),
	130	5.50%, 2/15/33		Aaa/NR		131,892
	4,350	5.50%, 2/15/33, (Pre-refunded @ $100, 8/15/14) (c)		Aaa/NR		4,947,429
	6,500	Brazos Cnty. Health Facs. Dev. Corp. Rev., Franciscan
		Services Corp., 5.375%, 1/1/32		NR/A-		4,754,165
	2,700	Comal Cnty. Health Facs. Dev. Rev., McKenna Memorial
		Hospital Project,
		6.25%, 2/1/32, (Pre-refunded @ $100, 2/1/13) (c)		NR/AAA		3,082,752
	20,000	Frisco Independent School Dist., GO, zero coupon, 8/15/34
		(PSF-GTD)		Aaa/NR		3,912,800
	700	HFDC of Central Texas, Inc. Rev., Village at Gleannloch Farms,
		5.50%, 2/15/37, Ser. A		NR/NR		431,249
	5,500	Houston Rev., 5.00%, 7/1/25, Ser. C (FGIC)		A1/AA		4,912,930
	770	Keller Independent School Dist., GO, 4.875%, 8/15/31
		(PSF-GTD)		Aaa/AAA		699,622
	3,170	Little Elm Independent School Dist., GO,
		5.30%, 8/15/29, Ser. A (PSF-GTD)		NR/AAA		3,173,645
	6,250	North Dallas Thruway Auth. Rev., 4.75%, 1/1/29 (FGIC)		A2/AA		5,451,000
		North Harris Cnty. Regional Water Auth. Rev.,
	10,300	5.25%, 12/15/33		A3/A+		8,872,832
	10,300	5.50%, 12/15/38		A3/A+		9,016,517
	5,000	North Texas Tollway Auth. Rev., 5.625%, 1/1/33, Ser. B		A2/A-		4,472,450
	2,000	Sabine River Auth. Rev., 5.20%, 5/1/28		Caa1/CCC		1,019,980
	10,000	San Antonio Electric & Gas Sys Rev.,
		5.00%, 2/1/32, Ser. 3247 (h)		Aa1/NR		9,263,300

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


PIMCO Municipal Income Fund II Schedule of Investments
November 30, 2008 (unaudited)




Principal Amount (000)			Credit Rating (Moody’s/S&P)	Value

		Texas—(continued)
		State, Mobility Fund, GO (h),
$	17,500	4.75%, 4/1/36	Aa1/AA		$ 15,323,350
	10,025	4.75%, 4/1/35, Ser. A	Aa1/AA		9,000,746
	1,000	State Public Finance Auth. Rev., 5.875%, 12/1/36, Ser. A	Baa3/BBB-		729,430
		State Turnpike Auth. Central Turnpike System Rev., Ser. A
		(AMBAC),
	10,000	zero coupon, 8/15/19	Baa1/AA		5,378,000
	8,880	5.00%, 8/15/42	Baa1/AA		6,409,229
	3,250	State Water Financial Assistance, GO, 5.00%, 8/1/36	Aa1/AA		2,925,552
	4,150	Willacy Cnty. Rev., 6.875%, 9/1/28, Ser. A-1	NR/NR		2,964,428

					106,883,298

		Virginia—0.1%
	2,050	James City Cnty. Economic Dev. Auth. Rev., 5.50%,
		7/1/37, Ser. A	NR/NR		1,274,546

		Washington—1.2%
	13,000	Health Care Facs. Auth. Rev., Virginia Mason Medical Center,
		6.125%, 8/15/37, Ser. A	Baa2/BBB		9,127,560
	6,800	State Housing Finance Commission Rev., Skyline at First Hill,
		5.625%, 1/1/38, Ser. A	NR/NR		4,194,988

					13,322,548

		Wisconsin—0.8%
		Badger Tobacco Asset Securitization Corp. Rev.,
	1,125	6.00%, 6/1/17	Baa3/BBB		1,088,719
	7,080	6.125%, 6/1/27	Baa3/BBB		6,691,308
		Health & Educational Facs. Auth. Rev., Froedert & Community
		Health Oblig.,
	90	5.375%, 10/1/30	NR/AA-		78,951
	910	5.375%, 10/1/30, (Pre-refunded @ $101, 10/1/11) (c)	NR/AA-		991,536

					8,850,514

		Total Municipal Bonds & Notes (cost—$1,243,526,036)			1,083,655,269


VARIABLE RATE NOTES (f)—1.2%
		Florida—0.2%
	2,830	Highlands Cnty. Health Facs. Auth. Rev., Adventist Health System,
		5.00%, 11/15/31, Ser. C	A1/A+		2,270,990

		Illinois—0.4%
	5,000	State, GO, 8.12%, 4/1/27, Ser. 783 (FSA)(a)(d)(e)	Aaa/NR		5,017,400

		Massachusetts—0.3%
	2,200	State, GO, 1.10%, 11/1/30, Ser. 785 (FGIC-TCRS)(a)(d)(e)	Aa2/NR		3,018,290

		Washington—0.3%
	4,550	Central Puget Sound Regional Transit Auth. Sales Tax &
		Motor Rev., 3.27%, 2/1/28, Ser. 360 (FGIC)(a)(d)(e)	Aa2/NR		3,797,840


		Total Variable Rate Notes (cost—$14,778,778)			14,104,520

12 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.08


PIMCO Municipal Income Fund II Schedule of Investments
November 30, 2008 (unaudited)




Principal Amount (000)			Value

U.S. TREASURY BILLS (g)—6.1%
$	71,160	0.01%-1.10%,12/11/08-2/26/09 (cost—$71,150,807)		$ 71,150,807


		Total Investments (cost—$1,329,455,621)—100.0%		$1,168,910,596

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


PIMCO California Municipal Income Fund II Schedule of Investments
November 30, 2008 (unaudited)




Principal Amount (000)			Credit Rating (Moody’s/S&P)	Value

CALIFORNIA MUNICIPAL BONDS & NOTES—90.1%

$	2,000	ABC Unified School Dist., GO, zero coupon, 8/1/23,
		Ser. B (MBIA-FGIC)	A1/AA		$ 831,140
	1,000	Alpine Union School Dist., GO, zero coupon, 8/1/24,
		Ser. B (FSA)	Aaa/AAA		432,780
		Assoc. of Bay Area Gov’t Finance Auth. Rev., Odd Fellows
		Home (CA Mtg. Ins.),
	5,300	5.20%, 11/15/22	NR/A+		5,141,318
	26,000	5.35%, 11/15/32	NR/A+		23,453,040
	2,000	Bay Area Gov’t Assoc., Lease Rev., 5.00%, 7/1/32,
		Ser. 2002-1 (AMBAC)	Baa1/AA		1,777,040
	1,945	Bay Area Gov’t Assoc., Special Assessment, Windmere
		Ranch Dist.,
		6.30%, 9/2/25, (Pre-refunded @ $102, 9/2/11) (c)	NR/AAA		2,208,761
	1,085	Capistrano Unified School Dist.,
		Special Tax, 5.70%, 9/1/20, (Pre-refunded @ $102, 9/1/09) (c)	NR/NR		1,144,252
	2,300	Ceres Unified School Dist., GO, zero coupon, 8/1/27 (MBIA-FGIC)	NR/AA		695,888
	1,160	Chula Vista Dist., Special Tax,
		6.05%, 9/1/25, (Pre-refunded @ $102, 9/1/10) (c)	NR/NR		1,267,161
		Chula Vista Community Facs. Dist., Special Tax,
		Eastlake Woods,
	1,825	6.15%, 9/1/26	NR/NR		1,463,376
	4,380	6.20%, 9/1/33	NR/NR		3,438,388
	2,880	Otay Ranch Village, 5.125%, 9/1/36	NR/NR		1,929,485
		Clovis Unified School Dist., GO, Ser. B (MBIA-FGIC),
	2,000	zero coupon, 8/1/23	NR/AA		818,260
	3,535	zero coupon, 8/1/25	NR/AA		1,246,017
	2,500	zero coupon, 8/1/27	NR/AA		760,625
	1,410	Community College Financing Auth. Lease Rev.,
		5.00%, 8/1/27, Ser. A (AMBAC)	Baa1/AA		1,219,269
		Coronado Community Dev. Agcy., Tax Allocation (AMBAC),
	9,945	4.875%, 9/1/35	NR/AA		7,893,545
	10,000	4.875%, 9/1/35 (h)	NR/AA		7,937,200
		Corona-Norco Unified School Dist. Public Financing Auth.,
		Special Tax,
	1,110	5.10%, 9/1/25 (AMBAC)	Baa1/AA		1,041,435
	210	5.55%, 9/1/15, Ser. A	NR/NR		198,238
	305	5.65%, 9/1/16, Ser. A	NR/NR		285,507
	160	5.75%, 9/1/17, Ser. A	NR/NR		148,346
	530	6.00%, 9/1/20, Ser. A	NR/NR		465,377
	1,000	6.00%, 9/1/25, Ser. A	NR/NR		787,160
	4,150	6.10%, 9/1/32, Ser. A	NR/NR		3,284,725
	3,000	Dinuba Financing Auth. Lease Rev., 5.10%, 8/1/32 (MBIA)	Baa1/AA		2,876,490
		Educational Facs. Auth. Rev., Loyola Marymount Univ.,
	3,475	zero coupon, 10/1/34, Ser. A (MBIA)	A2/NR		662,648
	2,000	Woodbury Univ., 5.00%, 1/1/36	Baa3/BBB-		1,309,500

14 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.08


PIMCO California Municipal Income Fund II Schedule of Investments
November 30, 2008 (unaudited)




Principal Amount (000)			Credit Rating (Moody’s/S&P)	Value

		Empire Union School Dist., Special Tax (AMBAC),
$	1,560	zero coupon, 10/1/30	Baa1/AA		$ 362,201
	1,265	zero coupon, 10/1/32	Baa1/AA		262,488
	1,000	Escondido Union School Dist., GO, zero coupon, 8/1/27 (FSA)	Aaa/AAA		321,170
	2,440	Eureka Union School Dist., GO, zero coupon, 8/1/27 (FSA)	Aaa/AAA		762,671
		Foothill Eastern Corridor Agcy. Toll Road Rev.,
	7,100	zero coupon, 1/1/25, Ser. A	Aaa/AAA		2,967,587
	3,270	zero coupon, 1/1/26, Ser. A	Aaa/AAA		1,290,309
	1,500	zero coupon, 1/15/27 (MBIA-IBC)	Baa1/AA		1,224,210
	1,440	Fremont Community Dist., Special Tax, 5.30%, 9/1/30	NR/NR		1,039,781
		Golden State Tobacco Securitization Corp. Rev.,
	2,000	zero coupon, 6/1/37, Ser. A-2	Baa3/BBB		844,980
	8,000	5.00%, 6/1/33, Ser. A-1	Baa3/BBB		5,018,080
	10,000	5.00%, 6/1/35, Ser. A (FGIC) (h)	A2/A		7,674,400
	45,000	5.00%, 6/1/38, Ser. A (FGIC) (h)	A2/A		32,496,300
	11,985	5.00%, 6/1/45, Ser. A (AMBAC-TCRS)	A2/AA		8,578,264
	6,000	5.00%, 6/1/45, Ser. A (FGIC-TCRS)	A2/A		4,201,620
	995	6.25%, 6/1/33, Ser. A-1	Aaa/AAA		1,057,317
	31,200	6.75%, 6/1/39, Ser. A-1, (Pre-refunded @ $100,
		6/1/13) (c)	NR/AAA		35,661,912
		Health Facs. Finance Auth. Rev.,
	4,000	Adventist Health System, 5.00%, 3/1/33	NR/A		3,070,560
	495	Catholic Healthcare West, 5.00%, 7/1/28,	A2/A		379,947
	2,115	Hope Rehabilitation, 5.375%, 11/1/20 (CA Mtg. Ins.)	NR/A+		1,950,072
		Paradise VY Estates (CA Mtg. Ins.),
	5,500	5.125%, 1/1/22	NR/A+		4,854,685
	3,875	5.25%, 1/1/26	NR/A+		3,309,715
	1,750	Huntington Beach Community Facs. Dist., Special Tax,
		6.30%, 9/1/32	NR/NR		1,409,397
	200	Infrastructure & Economic Dev. Bank Rev., Bay Area Toll
		Bridges, 5.00%, 7/1/36, (Pre-refunded @ $100,
		1/1/28) (AMBAC)(c)	Aaa/AAA		202,702
	7,000	Irvine Improvement Board Act 1915, Special Assessment,
		5.70%, 9/2/26	NR/NR		5,388,250
	1,000	Irvine Unified School Dist., Special Tax, 5.125%, 9/1/36, Ser. A	NR/NR		672,360
	1,900	Jurupa Unified School Dist., GO, zero coupon, 5/1/27
		(MBIA-FGIC)	NR/AA		567,625
	2,450	Kings Canyon JT Unified School Dist., GO, zero coupon,
		8/1/27 (MBIA-FGIC)	NR/AA		772,754
	5,300	Livermore-Amador Valley Water Management Agcy. Rev.,
		5.00%, 8/1/31, Ser. A (AMBAC)	A1/AA		4,604,587
		Los Angeles, CP (MBIA),
	9,895	5.00%, 2/1/27	A1/AA		9,461,896
	2,685	5.00%, 10/1/27, Ser. AU	A2/AA		2,549,703
		Los Angeles Department of Water & Power Rev.,
	15,000	4.75%, 7/1/30, Ser. A-2 (FSA)(h)	Aaa/AAA		12,856,050
	30,000	5.00%, 7/1/35, Ser. A (FSA)(h)	Aaa/AAA		26,537,400
	16,950	5.125%, 7/1/41, Ser. A (FGIC-TCRS)	Aa3/AA		15,068,380

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


PIMCO California Municipal Income Fund II Schedule of Investments
November 30, 2008 (unaudited)




Principal Amount (000)			Credit Rating (Moody’s/S&P)	Value

$	1,000	Manhattan Beach Unified School Dist., GO, zero coupon,
		9/1/25 (MBIA-FGIC)	Aa3/AA		$ 368,610
		Manteca Redev. Agcy., Tax Allocation,
	7,295	5.00%, 10/1/32 (FSA)	Aaa/AAA		6,556,965
	10,000	5.00%, 10/1/36 (AMBAC)	Baa1/AA		8,481,100
		Manteca Unified School Dist., Special Tax (MBIA),
	2,365	zero coupon, 9/1/25	Baa1/AA		798,826
	5,330	5.00%, 9/1/29, Ser. C	Baa1/AA		4,817,094
	4,000	Merced Cnty., CP, Juvenile Justice Correctional Fac.,
		5.00%, 6/1/32 (AMBAC)	A3/NR		3,527,880
		Modesto Elementary School Dist. Stanislaus Cnty., GO,
		Ser. A (MBIA-FGIC),
	2,615	zero coupon, 8/1/23	A1/AA		1,110,146
	2,705	zero coupon, 8/1/24	A1/AA		1,068,448
	2,000	zero coupon, 5/1/27	A1/AA		646,380
	2,150	Modesto High School Dist. Stanislaus Cnty., GO,
		zero coupon, 8/1/26, Ser. A (MBIA-FGIC)	A1/AA		722,615
	2,385	Monrovia Financing Auth. Lease Rev.,
		Hillside Wilderness Preserve, 5.125%, 12/1/31 (AMBAC)	Baa1/AA		2,121,648
		Montebello Unified School Dist., GO,
	1,485	zero coupon, 8/1/24 (FSA)	Aaa/AAA		577,710
	1,500	zero coupon, 8/1/24 (MBIA-FGIC)	NR/AA		569,490
	2,830	zero coupon, 8/1/25 (MBIA-FGIC)	NR/AA		996,641
	2,775	zero coupon, 8/1/27 (MBIA-FGIC)	NR/AA		842,407
	4,700	Moreno Valley Unified School Dist. Community Facs. Dist.,
		Special Tax, 5.20%, 9/1/36	NR/NR		3,206,387
	2,400	Morgan Hill Unified School Dist., GO, zero coupon,
		8/1/23 (FGIC)	NR/AAA		1,124,256
	3,245	Newark Unified School Dist., GO, zero coupon,
		8/1/26, Ser. D (FSA)	Aaa/AAA		1,109,498
	19,805	Oakland, GO, 5.00%, 1/15/27, Ser. A (MBIA-FGIC)(h)	A1/A+		17,954,619
		Palmdale Community Redev. Agcy., Tax Allocation (AMBAC),
	1,230	zero coupon, 12/1/30	Baa1/AA		298,041
	1,230	zero coupon, 12/1/31	Baa1/AA		280,686
	1,225	zero coupon, 12/1/32	Baa1/AA		260,325
	1,750	Paramount Unified School Dist., GO, zero coupon, 9/1/23,
		Ser. B (FSA)	Aaa/AAA		744,642
		Perris Public Financing Auth. Rev., Tax Allocation, Ser. C,
	780	5.375%, 10/1/20	NR/A		763,581
	1,800	5.625%, 10/1/31	NR/A		1,678,464
	10,000	Placentia-Yorba Linda Unified School Dist., CP,
		5.00%, 10/1/32 (MBIA-FGIC)	A2/AA		8,513,300
	10,150	Placer Union High School Dist., GO, zero coupon, 8/1/33 (FSA)	Aaa/AAA		2,126,222
		Poway Unified School Dist., Special Tax,
		Community Facs. Dist. No. 6, Area A,
	2,700	5.125%, 9/1/28	NR/BBB		1,967,328
	3,000	5.60%, 9/1/33	NR/BBB		2,354,160
	1,000	6.05%, 9/1/25	NR/NR		803,110
	5,500	6.125%, 9/1/33	NR/NR		4,286,590

16 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.08


PIMCO California Municipal Income Fund II Schedule of Investments
November 30, 2008 (unaudited)




Principal Amount (000)			Credit Rating (Moody’s/S&P)	Value

$	1,000	Community Facs. Dist. No. 10, 5.65%, 9/1/25	NR/NR		$ 781,250
	2,000	Rancho Cucamonga Community Facs. Dist.,
		Special Tax, 6.375%, 9/1/31, Ser. A	NR/NR		1,636,660
	1,500	Richmond Wastewater Rev., zero coupon, 8/1/30 (FGIC)	Baa3/AA-		425,685
	3,510	Riverside, CP, 5.00%, 9/1/33 (AMBAC)	Baa1/AA		3,024,778
		Riverside Unified School Dist. Community Facs. Dist. No. 15,
		Special Tax, Ser. A,
	1,000	5.15%, 9/1/25	NR/NR		752,950
	1,000	5.25%, 9/1/30	NR/NR		710,770
	1,000	5.25%, 9/1/35	NR/NR		690,910
		Rocklin Unified School Dist., GO (FGIC),
	5,000	zero coupon, 8/1/24 (MBIA)	A1/AA		1,960,000
	4,000	zero coupon, 8/1/25 (MBIA)	A1/AA		1,458,000
	4,000	zero coupon, 8/1/26	A1/AA		1,355,960
	4,500	zero coupon, 8/1/27 (MBIA)	A1/AA		1,419,345
		Roseville Redev. Agcy., Tax Allocation (MBIA),
	3,730	5.00%, 9/1/27, Ser. B	A3/AA		3,381,916
	3,365	5.00%, 9/1/32	A3/AA		2,862,269
	2,030	5.00%, 9/1/33	A3/AA		1,716,020
	4,335	Sacramento City Financing Auth. Rev.,
		North Natomas CFD No. 2, 6.25%, 9/1/23, Ser. A	NR/NR		3,633,597
		San Diego Cnty. Water Auth., CP, Ser. A (MBIA),
	8,285	5.00%, 5/1/28	Aa3/AA+		7,527,834
	8,000	5.00%, 5/1/29	Aa3/AA+		7,214,080
	1,200	San Diego Community Facs. Dist. No. 3,
		Special Tax, 5.60%, 9/1/21, Ser. A (a)	NR/NR		1,045,980
	1,000	San Diego Public Facs. Financing Auth. Lease Rev. (MBIA),
		5.00%, 5/15/29, Ser. A (FGIC)	A3/A+		864,040
	1,500	Fire & Life Safety Facs., 5.00%, 4/1/32	Baa1/AA		1,170,390
	11,000	Water Rev., 5.00%, 8/1/32	A3/AA		9,212,830
	5,585	San Francisco City & Cnty. Airports Commission Rev.,
		4.50%, 5/1/28, Ser. 2 (MBIA)	A1/AA		4,485,314
	10,405	San Joaquin Hills Transportation Corridor Agcy. Toll Road Rev.,
		zero coupon, 1/1/25	Aaa/AAA		4,348,978
		San Jose, Libraries & Parks, GO,
	14,970	5.00%, 9/1/32, Ser. 760 (MBIA)(h)	Aa1/AAA		14,058,477
	10,190	5.125%, 9/1/31	Aa1/AAA		9,785,966
	9,150	San Jose Unified School Dist., GO,
		Santa Clara Cnty., 5.00%, 8/1/27, Ser. A (FSA)(h)	Aaa/AAA		8,508,036
		San Juan Unified School Dist., GO (FSA),
	1,770	zero coupon, 8/1/23	Aaa/AAA		751,418
	6,105	zero coupon, 8/1/26	Aaa/AAA		2,087,361
	2,300	San Mateo Union High School Dist., GO, zero coupon,
		9/1/20 (MBIA-FGIC)	Aa3/AA		1,234,364
	1,730	San Rafael City High School Dist., GO, 5.00%, 8/1/27,
		Ser. B (FSA)	Aaa/AAA		1,662,893
	3,280	San Rafael Elementary School Dist., GO, 5.00%, 8/1/27,
		Ser. B (FSA)	Aaa/AAA		3,134,106
		Santa Clara Unified School Dist., GO (MBIA),
	2,155	5.00%, 7/1/25	Baa1/AA		2,010,076
	3,040	5.00%, 7/1/27	Baa1/AA		2,776,371

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


PIMCO California Municipal Income Fund II Schedule of Investments
November 30, 2008 (unaudited)




Principal Amount (000)			Credit Rating (Moody’s/S&P)	Value

$	1,260	Santa Cruz Cnty., CP, 5.25%, 8/1/32	A3/NR		$ 1,200,881
		Santa Margarita Water Dist., Special Tax,
	2,000	6.00%, 9/1/30, (Pre-refunded @ $100, 9/1/13) (c)	NR/NR		2,274,760
	815	6.25%, 9/1/29, (Pre-refunded @ $102, 9/1/09) (c)	NR/NR		860,917
	2,185	6.25%, 9/1/29	NR/NR		1,803,084
	2,000	Santa Monica Community College Dist., GO,
		zero coupon, 8/1/26, Ser. C (MBIA)	Aa2/AA		660,900
		Saugus Hart School Facs. Financing Auth. Community Facs. Dist.,
		Special Tax,
	1,140	6.10%, 9/1/32	NR/NR		892,791
	2,155	6.125%, 9/1/33	NR/NR		1,679,564
	1,000	Shasta Union High School Dist., GO, zero coupon, 8/1/24 (FGIC)	NR/AA		392,000
	2,745	South Tahoe JT Powers Parking Financing Auth. Rev.,
		7.00%, 12/1/27, Ser. A	NR/NR		2,124,822
	1,800	Southern Mono Health Care Dist., GO, zero coupon,
		8/1/26 (MBIA)	Baa1/AA		584,622
		State, GO,
	400	5.00%, 6/1/37	A1/A+		333,448
	14,400	5.00%, 11/1/37, Ser. 2670 (h)	A1/A+		11,994,336
	2,400	5.00%, 12/1/37	A1/A+		1,998,936
		Statewide Community Dev. Auth. Rev.,
	1,600	Baptist Univ., 5.50%, 11/1/38, Ser. A	NR/NR		968,128
	3,495	Bentley School, 6.75%, 7/1/32 (a)(b)	NR/NR		2,805,646
		Catholic Healthcare West,
	1,800	5.50%, 7/1/31, Ser. D	A2/A		1,517,490
	1,800	5.50%, 7/1/31, Ser. E	A2/A		1,517,472
	1,250	Huntington Park Chapter School, 5.25%, 7/1/42, Ser. A	NR/NR		804,025
	9,700	Jewish Home, 5.50%, 11/15/33 (CA St. Mtg.)	NR/A+		8,196,112
	2,770	Kaiser Permanente, 5.50%, 11/1/32, Ser. A	NR/A+		2,287,134
	3,000	Live Oak School, 6.75%, 10/1/30	NR/NR		2,474,610
	500	Peninsula Project, 5.00%, 11/1/29	NR/NR		330,190
	1,170	Wildwood Elementary School, CP, 6.10%, 11/1/15 (a)(b)	NR/NR		1,160,839
	1,365	Windrush School, 5.50%, 7/1/37	NR/NR		907,889
		Statewide Financing Auth. Tobacco Settlement Rev.,
	1,610	5.625%, 5/1/29	Baa3/NR		1,253,466
	20,000	6.00%, 5/1/37, Ser. B	Baa3/NR		13,862,400
		Tobacco Securitization Agcy. Rev.,
	4,500	Alameda Cnty., 6.00%, 6/1/42	Baa3/NR		3,036,960
		Fresno Cnty.,
	3,400	5.625%, 6/1/23	Baa3/BBB		3,390,956
	10,000	6.00%, 6/1/35	Baa3/BBB		7,086,100
	6,600	Gold Cnty., zero coupon, 6/1/33	NR/BBB		626,274
	1,800	Stanislaus Funding, 5.875%, 6/1/43, Ser. A	Baa3/NR		1,188,756
	8,000	Tobacco Securitization Auth. of Southern California Rev.,
		5.00%, 6/1/37, Ser. A-1	Baa3/BBB		4,701,600
	995	Tracy Community Facs. Dist., Special Tax,
		South Macarthur Area, 6.00%, 9/1/27	NR/NR		801,542

18 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.08


PIMCO California Municipal Income Fund II Schedule of Investments
November 30, 2008 (unaudited)


Principal Amount (000)			Credit Rating (Moody’s/S&P)	Value

		Univ. Rev.,
$	5,500	4.75%, 5/15/35, Ser. F (FSA)(h)	NR/AAA		$ 4,630,835
	5,000	4.75%, 5/15/35, Ser. G (FGIC)(h)	Aa1/AA		4,117,200
	5,650	4.75%, 5/15/38, Ser. B	Aa2/AA-		4,638,876
	10,000	Ventura Cnty. Community College Dist. GO,
		5.00%, 8/1/27, Ser. A (MBIA) (h)	Aa3/AA		9,498,800
	1,555	Ventura Unified School Dist., GO, 5.00%, 8/1/32, Ser. F (FSA)	Aaa/AAA		1,431,455
		Victor Elementary School Dist., GO, Ser. A (MBIA-FGIC),
	1,125	zero coupon, 8/1/24	A2/AA		431,066
	2,410	zero coupon, 8/1/26	A2/AA		796,240
	1,000	Vista Unified School Dist., GO, zero coupon, 8/1/26, Ser. A (FSA)	Aaa/AAA		344,850
		West Contra Costa Unified School Dist., GO, Ser. A (MBIA),
	2,740	5.00%, 8/1/26	Baa1/AA		2,512,772
	2,690	5.00%, 8/1/28	Baa1/AA		2,313,319
	1,890	5.00%, 8/1/31	Baa1/AA		1,587,146
	2,000	William S. Hart JT School Financing Auth. Rev., 5.625%,
		9/1/34	NR/BBB+		1,568,740
	2,110	Yuba City Unified School Dist., GO, zero coupon, 9/1/25
		(MBIA-FGIC)	A3/AA		777,767


		Total California Municipal Bonds & Notes (cost—$665,086,980)			580,869,853


OTHER MUNICIPAL BONDS & NOTES—3.4%
		Iowa—1.7%
	16,100	Tobacco Settlement Auth. of Iowa Rev., 5.60%, 6/1/34, Ser. B	Baa3/BBB		11,284,168

		New York—0.3%
	1,900	New York City Municipal Water Finance Auth. Rev. Ser. D
		5.00%, 6/15/37, Ser. 3240 (h)	Aa2/AAA		1,720,545

		Pennsylvania—0.4%
	4,300	Allegheny Cnty. Hospital Dev. Auth. Rev., 5.375%, 11/15/40,
		Ser. A	Ba3/BB		2,424,039

		Puerto Rico—1.0%
	2,200	Aqueduct & Sewer Auth. Rev., 6.00%, 7/1/38, Ser. A	Baa3/BBB-		1,927,750
	2,505	Public Building Auth. Rev., Gov’t Facs., 5.00%, 7/1/36,
		Ser. I (GTD)	Baa3/BBB-		1,955,077
		Sales Tax Financing Corp. Rev., Ser. A (AMBAC),
	32,600	zero coupon, 8/1/47	A1/AA		2,100,418
	12,500	zero coupon, 8/1/54	A1/A+		418,375

					6,401,620


		Total Other Municipal Bonds & Notes (cost—$31,929,020)			21,830,372

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


PIMCO California Municipal Income Fund II Schedule of Investments
November 30, 2008 (unaudited)


Principal Amount (000)			Credit Rating (Moody’s/S&P)	Value

OTHER VARIABLE RATE NOTES (f)—0.8%
		Puerto Rico—0.8%
$	5,300	Public Finance Corp. Rev., 5.75%, 8/1/27, Ser. A
		(cost—$5,496,535)	Ba1/BBB-		$ 5,275,408


U.S. TREASURY BILLS (g)—5.7%
	36,470	0.01%-1.10%, 12/11/08-2/26/09 (cost—$36,465,321)			36,465,321


		Total Investments (cost—$738,977,856)—100.0%			$ 644,440,954

20 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.08


PIMCO New York Municipal Income Fund II Schedule of Investments
November 30, 2008 (unaudited)



Principal Amount (000)			Credit Rating (Moody’s/S&P)	Value

NEW YORK MUNICIPAL BONDS & NOTES—87.2%
$	250	Buffalo Municipal Water Finance Auth.,
		Water System Rev., 5.00%, 7/1/27, Ser. B, (Pre-refunded
		@ $100, 7/1/12) (FSA)(c)	Aaa/AAA		$ 274,315
	2,400	Erie Cnty. Industrial Dev. Agcy., Orchard Park Rev., 6.00%,
		11/15/36	NR/NR		1,601,760
	10,000	Erie Cnty. Tobacco Asset Securitization Corp. Rev.,
		6.50%, 7/15/32, (Pre-refunded @ $101, 7/15/10) (c)	NR/AAA		10,837,400
	1,700	Liberty Dev. Corp. Rev.,
		5.50%, 10/1/37	Aa3/AA-		1,256,011
	2,500	Goldman Sachs Headquarters,
		5.25%, 10/1/35, Ser. 1251 (h)	Aa3/AA-		1,789,000
		Metropolitan Transportation Auth. Rev.,
	1,850	5.00%, 11/15/30, Ser. A (FSA)	Aaa/AAA		1,573,036
	10,000	5.25%, 11/15/31, Ser. E	A2/A		8,719,700
	7,000	5.35%, 7/1/31, Ser. B	A1/AAA		6,273,330
	3,570	Mortgage Agcy. Rev., 4.75%, 10/1/27, Ser. 128	Aa1/NR		2,903,481
	2,400	Nassau Cnty. Industrial Dev. Agcy. Rev.,
		Amsterdam at Harborside, 6.70%, 1/1/43, Ser. A	NR/NR		1,816,968
		New York City Health & Hospital Corp. Rev.,
	1,100	5.375%, 2/15/26, Ser. A	A1/A+		994,433
	2,000	5.45%, 2/15/26, Ser. A	A1/A+		1,823,680
		New York City Industrial Dev. Agcy. Rev.,
	975	Eger Harbor, 4.95%, 11/20/32, (GNMA)	NR/AA+		812,565
	1,415	Liberty Interactive Corp., 5.00%, 9/1/35	Ba2/BB+		945,914
	1,205	Staten Island Univ. Hospital, 6.45%, 7/1/32	B2/NR		887,892
	1,500	United Jewish Appeal Fed., 5.00%, 7/1/27	Aa1/NR		1,450,605
		Yankee Stadium,
	5,000	5.00%, 3/1/31, (FGIC)	Baa3/BBB-		3,922,500
	2,400	5.00%, 3/1/36, (MBIA)	Baa1/AA		1,820,304
		New York City Municipal Water Finance Auth.,
		Water & Sewer System Rev. (h),
	7,500	4.50%, 6/15/33, Ser. C	Aa2/AA+		6,091,050
	15,000	5.00%, 6/15/32, Ser. A	NR/AAA		14,047,950
	10,000	New York City Transitional Finance Auth. Rev., 5.00%,
		11/1/27, Ser. B	Aa1/AAA		9,609,300
	7,785	New York City Trust for Cultural Res. Rev., 5.00%, 2/1/34,
		(MBIA-FGIC)	Aa3/AA		6,993,421
	4,000	New York City, GO, 5.00%, 3/1/33, Ser. I	Aa3/AA		3,458,600
	3,600	Port Auth. of New York & New Jersey Rev.,
		5.00%, 4/15/32, Ser. 125 (FSA)	Aaa/AAA		3,382,596
		State Dormitory Auth. Rev.,
	80	5.25%, 9/1/28, (Pre-refunded @ $102, 9/1/09) (Radian)(c)	A3/AA		84,103
	1,320	5.25%, 9/1/28, (Radian)	A3/AA		1,213,885
	7,490	5.50%, 5/15/31, Ser. A (AMBAC)	Aa3/AA		7,319,902
	2,600	Catholic Health of Long Island, 5.10%, 7/1/34	Baa1/BBB		1,813,942
	2,000	Kaleida Health Hospital, 5.05%, 2/15/25, (FHA)	NR/AAA		1,776,540
	5,300	Lenox Hill Hospital, 5.50%, 7/1/30	Ba1/NR		3,521,161
	1,000	New York Univ. Hospital, 5.625%, 7/1/37, Ser. B	Ba2/BB		697,810
	5,850	North General Hospital, 5.00%, 2/15/25	NR/AA-		5,411,952
	5,000	Rochester General Hospital, 5.00%, 12/1/35, (Radian)	A3/BBB+		3,805,850
	4,270	Teachers College, 5.00%, 7/1/32, (MBIA)	A1/NR		4,011,067
	2,000	Yeshiva Univ., 5.125%, 7/1/34, (AMBAC)	Aa2/NR		1,889,720

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


PIMCO New York Municipal Income Fund II Schedule of Investments
November 30, 2008 (unaudited)



Principal Amount (000)			Credit Rating (Moody’s/S&P)	Value

$	2,000	State Environmental Facs. Corp.,
		State Clean Water & Drinking Rev., 5.125%, 6/15/31	Aaa/AAA		$ 1,923,720
		Tobacco Settlement Asset Backed, Inc. Rev.,
	25,000	5.00%, 6/1/34, Ser. 1	NR/BBB		17,592,250
	25,000	5.75%, 7/15/32, Ser. 1, (Pre-refunded @ $100, 7/15/12) (c)	Aaa/AAA		28,013,000
	10,000	6.375%, 7/15/39, Ser. 1, (Pre-refunded @ $101, 7/15/09) (c)	Aaa/AAA		10,428,900
	710	Triborough Bridge & Tunnel Auth. Rev., 5.00%, 1/1/32,
		(FGIC-TCRS)	Aa2/AA-		644,524
	1,815	Ulster Cnty. Industrial Dev. Agcy. Rev., 6.00%, 9/15/37, Ser. A	NR/NR		1,257,704
	2,000	Warren & Washington Cntys. Industrial Dev. Agcy. Rev.,
		Glens Falls Hospital, 5.00%, 12/1/35, Ser. A (FSA)	Aaa/AAA		1,772,740
	750	Westchester Cnty. Industrial Dev. Agcy. Continuing Care
		Retirement Rev., Kendal on Hudson, 6.50%, 1/1/34,
		(Pre-refunded @ $100, 1/1/13) (c)	NR/NR		863,085

		Total New York Municipal Bonds & Notes (cost—$206,139,420)			187,327,666


OTHER MUNICIPAL BONDS & NOTES—7.3%
		California—3.2%
		Alameda Unified School Dist., GO, Alameda Cnty.(FSA),
	3,500	zero coupon, 8/1/24, Ser. A	Aaa/AAA		1,365,210
	3,000	zero coupon, 8/1/25, Ser. A	Aaa/AAA		1,089,540
	3,130	Covina Valley Unified School Dist.,
		GO, zero coupon, 6/1/25, Ser. B (MBIA-FGIC)	NR/AA		1,143,295
	5,000	Tobacco Securitization Agcy. Rev.,
		Los Angeles Cnty., zero coupon, 6/1/28	Baa3/NR		3,258,350

					6,856,395

		Puerto Rico—4.1%
	4,600	Aqueduct & Sewer Auth. Rev., 6.00%, 7/1/38, Ser. A	Baa3/BBB-		4,030,750
	5,675	Children’s Trust Fund Tobacco Settlement Rev., 5.625%,
		5/15/43	Baa3/BBB		3,947,587
		Sales Tax Financing Corp. Rev.,
	14,250	zero coupon, 8/1/54, Ser. A (AMBAC)	A1/A+		476,947
	12,900	zero coupon, 8/1/56, Ser. A	A1/A+		355,395

					8,810,679

		Total Other Municipal Bonds & Notes (cost—$21,112,875)			15,667,074


NEW YORK VARIABLE RATE NOTES (a)(d)(f)—0.3%
	1,300	State Urban Dev. Corp. Rev., 19.167%, 3/15/35
		(cost—$1,405,204)	NR/AAA		682,760


OTHER VARIABLE RATE NOTES (f)—1.4%
		California—0.5%
	2,000	Golden State Tobacco Securitization Corp. Rev.,
		5.00%, 6/1/35, Ser. A (FGIC) (a)(d)	A2/A		1,069,760

		Puerto Rico—0.9%
	1,900	Public Finance Corp. Rev., 5.75%, 8/1/27, Ser. A	Ba1/BBB-		1,891,184

		Total Other Variable Rate Notes (cost—$3,970,456)			2,960,944


U.S. TREASURY BILLS (g)—3.8%
	8,140	0.12%-1.10%,12/26/08-2/26/09 (cost—$8,138,717)			8,138,717


		Total Investments (cost—$240,766,672)—100.0%			$ 214,777,161

22 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.08


PIMCO Municipal Income Funds II Notes to Schedule of Investments
November 30, 2008 (unaudited)




Notes to Schedules of Investments:
(a)	Private Placement—Restricted as to resale and may not have a readily available market. Securities with an aggregate value of $21,194,686, representing 1.81% of total investments in Municipal Income II. Securities with an aggregate value of $5,012,465, representing 0.78% of total investments in California Municipal Income II. Securities with an aggregate value of $1,752,520, representing 0.82% of total investments in New York Municipal II.
(b)	Illiquid security.
(c)	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).
(d)	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.
(e)	Inverse Floater—The interest rate shown bears an inverse relationship to the interest rate on another security or the value of an index. The interest rate disclosed reflects the rate in effect on November 30, 2008.
(f)	Variable Rate Notes—Instruments whose interest rates change on specified date (such as a coupon date or interest payment date) and/or whose interest rates vary with changes in a designated base rate (such as the prime interest rate). The interest rate disclosed reflects the rate in effect on November 30, 2008.
(g)	All or partial amount segregated as collateral for swaps.
(h)	Residual Interest Bonds Held in Trust—Securities represent underlying bonds transferred to a separate securitization trust established in a tender option bond transaction in which the Funds acquired the residual interest certificates. These securities serve as collateral in a financing transaction.

Glossary:

AMBAC — insured by American Municipal Bond Assurance Corp.

CA Mtg. Ins. — insured by California Mortgage Insurance

CA St. Mtg. — insured by California State Mortgage

CP — Certificates of Participation

FGIC — insured by Financial Guaranty Insurance Co.

FHA — insured by Federal Housing Administration

FSA — insured by Financial Security Assurance, Inc.

GNMA — insured by Government National Mortgage Association

GO — General Obligation Bond

GTD — Guaranteed

IBC — Insurance Bond Certificate

MBIA — insured by Municipal Bond Investors Assurance

NR — Not Rated

PSF — Public School Fund

Radian — insured by Radian Guaranty, Inc.

TCRS — Temporary Custodian Receipts

See accompanying Notes to Financial Statements | 11.30.08 | PIMCO Municipal Income Funds II Semi-Annual Report 23


PIMCO Municipal Income Funds II Statements of Assets and Liabilities
November 30, 2008 (unaudited)


	Municipal II			California Municipal II			New York Municipal II


Assets:
Investments, at value (cost—$1,329,455,621, $738,977,856 and $240,766,672, respectively)		$1,168,910,596			$644,440,954			$214,777,161

Cash		—			6,866,853			—

Premium for swaps purchased		39,583,727			21,398,729			6,520,624

Interest receivable		20,852,855			17,531,414			4,374,927

Receivable for investments sold		70,000			51,374			—

Prepaid expenses and other assets		52,401			401,469			358,396

Total Assets		1,229,469,579			690,690,793			226,031,108


Liabilities:
Unrealized depreciation on swaps		89,128,259			49,067,968			14,172,628

Payable for floating rate notes		81,697,152			110,420,820			13,552,563

Premium for swaps sold		48,000,000			26,000,000			8,000,000

Payable to custodian for cash overdraft		4,623,983			—			3,951,192

Dividends payable to common and preferred shareholders		3,960,485			2,211,247			724,919

Interest payable		3,403,811			8,708,932			480,619

Investment management fees payable		527,146			261,990			97,542

Accrued expenses and other payables		727,013			5,382,142			115,969

Total Liabilities		232,067,849			202,053,099			41,095,432

Preferred shares ($0.00001 par value and $25,000 net asset and liquidation value per share applicable to an aggregate of 20,200, 10,400 and 3,600 shares issued and outstanding, respectively)		505,000,000			260,000,000			90,000,000

Net Assets Applicable to Common Shareholders		$492,401,730			$228,637,694			$94,935,676


Composition of Net Assets Applicable to Common Shareholders:
Common Stock:
Par value ($0.00001 per share)		$593			$308			$106

Paid-in-capital in excess of par		843,249,612			436,051,623			151,085,082

Undistributed (dividends in excess of) net investment income		2,499,400			(4,204,630	)		(1,091,114	)

Accumulated net realized loss		(103,674,286	)		(65,242,666	)		(14,635,408	)

Net unrealized depreciation of investments and swaps		(249,673,589	)		(137,966,941	)		(40,422,990	)

Net Assets Applicable to Common Shareholders		$492,401,730			$228,637,694			$94,935,676

Common Shares Outstanding		59,311,427			30,815,157			10,648,543

Net Asset Value Per Common Share		$8.30			$7.42			$8.92

24 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.08 | See accompanying Notes to Financial Statements


PIMCO Municipal Income Funds II Statements of Operations
For the six months ended November 30, 2008 (unaudited)


	Municipal II			California Municipal II			New York Municipal II

Investment Income:
Interest		$39,684,097			$21,391,691			$6,530,564


Expenses:
Investment management fees		3,963,395			1,987,390			714,566

Interest expense		2,453,651			3,355,022			254,151

Auction agent fees and commissions		646,615			334,930			123,517

Custodian and accounting agent fees		80,565			52,743			18,198

Legal fees		75,983			50,883			31,904

Shareholder communications		74,790			40,644			4,215

Trustees’ fees and expenses		62,903			35,785			20,869

Audit and tax services		45,483			28,929			13,899

New York Stock Exchange listing fees		28,618			14,975			12,938

Transfer agent fees		18,168			12,087			18,256

Insurance expense		4,237			2,336			1,112

Miscellaneous		6,745			6,357			3,300

Total expenses		7,461,153			5,922,081			1,216,925

Less: investment management fees waived		(358,646	)		(180,053	)		(64,541	)

custody credits earned on cash balances		(40,932	)		(10,890	)		(10,482	)

Net expenses		7,061,575			5,731,138			1,141,902


Net Investment Income		32,622,522			15,660,553			5,388,662


Realized and Change In Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(6,073,222	)		(6,428,795	)		512,921

Futures contracts		(7,068,860	)		(2,876,409	)		(960,187	)

Swaps		(12,370,154	)		(6,700,500	)		(2,061,692	)

Net change in unrealized appreciation/depreciation of:
Investments		(208,559,433	)		(110,713,622	)		(32,249,341	)

Futures contracts		(6,565,336	)		(4,502,969	)		(1,197,641	)

Swaps		(89,128,259	)		(49,067,968	)		(14,172,628	)

Net realized and change in unrealized (loss) on investments, futures contracts and swaps		(329,765,264	)		(180,290,263	)		(50,128,568	)

Net Decrease in Net Assets Resulting from Investment Operations		(297,142,742	)		(164,629,710	)		(44,739,906	)

Dividends on Preferred Shares from Net Investment Income		(9,169,316	)		(4,720,836	)		(1,631,548	)

Net Decrease in Net Assets Applicable to Common Shareholders Resulting from Investment Operations		$(306,312,058	)		$(169,350,546	)		$(46,371,454	)

See accompanying Notes to Financial Statements | 11.30.08 | PIMCO Municipal Income Funds II Semi-Annual Report 25


PIMCO Municipal Income Funds II	Statements of Changes in Net Assets
	Applicable to Common Shareholders




	Municipal II

	Six months ended November 30, 2008 (unaudited)			Year ended May 31, 2008

Investment Operations:
Net investment income		$32,622,522			$66,423,523

Net realized gain (loss) on investments, futures contracts and swaps		(25,512,236	)		5,404,191

Net change in unrealized appreciation/depreciation of investments, futures contracts and swaps		(304,253,028	)		(78,458,658	)

Net decrease in net assets resulting from investment operations		(297,142,742	)		(6,630,944	)


Dividends to Preferred Shareholders from Net investment income		(9,169,316	)		(17,559,291	)

Net decrease in net assets applicable to common shareholders resulting from investment operations		(306,312,058	)		(24,190,235	)


Dividends to Common Shareholders from Net Investment Income		(23,109,268	)		(46,046,478	)


Capital Share Transactions:
Reinvestment of dividends		2,083,433			3,161,576

Total decrease in net assets applicable to common shareholders		(327,337,893	)		(67,075,137	)


Net Assets Applicable to Common Shareholders:
Beginning of period		819,739,623			886,814,760

End of period (including undistributed (dividends in excess of) net investment income of $2,499,400 and $2,155,462; $(4,204,630) and $(2,219,623); $(1,091,114) and $(621,423); respectively)		$492,401,730			$819,739,623


Common Shares Issued in Reinvestment of Dividends		162,941			223,853

26 PIMCO Municipal Income Funds II Semi-Annual Report | 11.30.08 | See accompanying Notes to Financial Statements


California Municipal II						New York Municipal II

Six months ended November 30, 2008 (unaudited)			Year ended May 31, 2008			Six months ended November 30, 2008 (unaudited)			Year ended May 31, 2008


	$15,660,553			$32,439,150			$5,388,662			$11,390,311

	(16,005,704	)		(9,422,890	)		(2,508,958	)		436,283


	(164,284,559	)		(36,237,871	)		(47,619,610	)		(12,133,193	)

	(164,629,710	)		(13,221,611	)		(44,739,906	)		(306,599	)


	(4,720,836	)		(8,660,050	)		(1,631,548	)		(3,073,529	)

	(169,350,546	)		(21,881,661	)		(46,371,454	)		(3,380,128	)


	(12,924,724	)		(25,748,032	)		(4,226,805	)		(8,420,559	)



	1,143,615			2,114,952			433,791			682,941

	(181,131,655	)		(45,514,741	)		(50,164,468	)		(11,117,746	)



	409,769,349			455,284,090			145,100,144			156,217,890

	$228,637,694			$409,769,349			$94,935,676			$145,100,144


	94,230			150,398			34,653			48,516

See accompanying Notes to Financial Statements | 11.30.08 | PIMCO Municipal Income Funds II Semi-Annual Report 27


PIMCO California Municipal Income Fund II Statement of Cash Flows
For the six months ended November 30, 2008 (unaudited)




Cash Flows provided by Operating Activities:
Purchases of long-term investments	$(2,388,320	)

Proceeds from sales of long-term investments	161,306,879

Decrease in deposits with brokers for futures contracts collateral	5,940,000

Interest received	17,063,672

Net cash used for swap transactions	(2,099,229	)

Operating expenses paid	(2,448,567	)

Net cash used for futures transactions	(8,364,011	)

Net increase in short-term investments	(39,749,758	)

Net cash provided by operating activities	129,260,666


Cash Flows from Financing Activities:
Cash dividends paid (excluding reinvestment of $1,143,615)	(16,510,322	)

Payments to retire floating rate notes	(109,809,660	)

Cash paid on issuance of floating rate notes	(6,507,353	)

Net cash used for financing activities*	(132,827,335	)


Net decrease in cash	(3,566,669	)

Cash at beginning of period	10,433,522

Cash at end of period	6,866,853


Reconciliation of Net Decrease in Net Assets Resulting from Investment Operations to Net Cash Provided by Operating Activities:
Net decrease in net assets resulting from investment operations	(164,629,710	)

Decrease in deposits with brokers for futures contracts collateral	5,940,000

Decrease in interest receivable	1,178,980

Decrease in receivable for investments sold	1,099,078

Increase in premium for swaps purchased	(21,398,729	)

Increase in premium for swaps sold	26,000,000

Increase in prepaid expenses and other assets	(10,336	)

Decrease in investment management fees payable	(49,147	)

Increase in net unrealized depreciation on swaps	49,067,968

Decrease in net payable for variation margin on futures contracts	(984,634	)

Decrease in accrued expenses and other liabilities	(12,968	)

Net decrease in investments	233,060,164



Net cash provided by operating activities	$129,260,666


*	Supplemental Disclosure