Edgar Filing: PIMCO MUNICIPAL INCOME FUND

PIMCO MUNICIPAL INCOME FUND

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY


Investment Company Act File Number:		811-10377

Registrant Name:		PIMCO Municipal Income Fund

Address of Principal Executive Offices:		1633 Broadway
		New York, NY 10019

Name and Address of Agent for Service:		William G. Galipeau
		1633 Broadway
		New York, NY 10019

Registrant’s telephone number, including area code:		888-877-4626

Date of Fiscal Year End:		April 30, 2015

Date of Reporting Period:		July 31, 2014

Item 1. Schedule of Investments

PIMCO Municipal Income Fund

July 31, 2014 (unaudited)


Principal Amount (000s)			Value*
	MUNICIPAL BONDS & NOTES—94.6%
	Alabama - 1.9%
		Huntsville-Redstone Village Special Care Facs. Financing Auth. Rev., Redstone Village Project,
$	250	5.50%, 1/1/28	$	251,157
	885	5.50%, 1/1/43		842,290
	15,000	Jefferson Cnty. Sewer Rev., zero coupon, 10/1/50, Ser. F (j)		8,799,900

				9,893,347

	Alaska - 0.8%
	3,280	Borough of Matanuska-Susitna Rev., Goose Creek Correctional Center, 6.00%, 9/1/32 (AGC)		3,876,763
	900	Industrial Dev. & Export Auth. Rev., Boys & Girls Home, 6.00%, 12/1/36 (b)(e)		405,000

				4,281,763

	Arizona - 2.4%
		Health Facs. Auth. Rev.,
	2,050	Banner Health, 5.50%, 1/1/38, Ser. D		2,183,188
	2,750	Beatitudes Campus Project, 5.20%, 10/1/37		2,527,882
	1,500	Maricopa Cnty. Pollution Control Corp. Rev., Southern California Edison Co., 5.00%, 6/1/35, Ser. A		1,597,185
	750	Pima Cnty. Industrial Dev. Auth. Rev., Tucson Electric Power Co., 5.25%, 10/1/40, Ser. A		800,663
	5,000	Salt River Project Agricultural Improvement & Power Dist. Rev., 5.00%, 1/1/39, Ser. A (i)		5,531,500

				12,640,418

	Arkansas - 0.4%
	5,500	Dev. Finance Auth. Rev., Arkansas Cancer Research Center Project, zero coupon, 7/1/36 (AMBAC)		1,918,070

	California - 16.6%
		Bay Area Toll Auth. Rev., San Francisco Bay Area,
	2,875	5.00%, 10/1/34		3,113,481
	3,255	5.00%, 10/1/42		3,463,743
	10,000	5.25%, 4/1/53, Ser. S-4		10,769,900
	3,000	Chula Vista Rev., San Diego Gas & Electric, 5.875%, 2/15/34, Ser. B		3,422,010
	7,500	Golden State Tobacco Securitization Corp. Rev., 5.75%, 6/1/47, Ser. A-1		5,988,450
		Health Facs. Financing Auth. Rev.,
	2,000	Catholic Healthcare West, 6.00%, 7/1/39, Ser. A		2,229,240
	3,000	Sutter Health, 5.00%, 8/15/52, Ser. A		3,213,660
	1,500	Sutter Health, 6.00%, 8/15/42, Ser. B		1,781,910
	5,300	Los Angeles Community College Dist., GO, 5.00%, 8/1/32, Ser. A (FGIC-NPFGC)		5,836,943
	2,000	Los Angeles Unified School Dist., GO, 5.00%, 7/1/30, Ser. E (AMBAC) (Pre-refunded @ $100, 7/1/15) (c)		2,088,500
	2,000	M-S-R Energy Auth. Rev., 6.125%, 11/1/29, Ser. C		2,518,060
	4,175	Montebello Unified School Dist., GO, 5.00%, 8/1/33 (AGM)		4,548,996
	1,390	Municipal Finance Auth. Rev., Azusa Pacific Univ. Project, 7.75%, 4/1/31, Ser. B		1,627,176
	5,000	Orange Cnty. Airport Rev., 5.25%, 7/1/39, Ser. A		5,490,350
	1,600	San Marcos Unified School Dist., GO, 5.00%, 8/1/38, Ser. A		1,738,352
		State, GO,
	700	5.00%, 11/1/32		770,441
	1,200	5.00%, 6/1/37		1,287,744
	2,300	5.125%, 8/1/36		2,547,112
	1,250	5.25%, 3/1/38		1,371,688
	1,900	5.25%, 11/1/40		2,150,743
	500	5.50%, 3/1/40		566,435
	3,200	6.00%, 4/1/38		3,761,536
		Statewide Communities Dev. Auth. Rev.,
	625	California Baptist Univ., 6.50%, 11/1/21		735,638
	845	Catholic Healthcare West, 5.50%, 7/1/31, Ser. E		923,551
	2,310	Methodist Hospital Project, 6.625%, 8/1/29 (FHA)		2,728,156
	8,485	Methodist Hospital Project, 6.75%, 2/1/38 (FHA)		10,005,088
	1,000	Trinity Health, 5.00%, 12/1/41		1,087,350
	2,000	Whittier Union High School Dist., GO, zero coupon, 8/1/25		1,243,460

				87,009,713

	Colorado - 0.6%
	450	Denver Health & Hospital Auth. Rev., 5.625%, 12/1/40		487,850
	500	Public Auth. for Colorado Energy Rev., 6.50%, 11/15/38		654,740
	400	Regional Transportation Dist., CP, 5.375%, 6/1/31, Ser. A		437,412
	1,500	Univ. of Colorado Rev., 5.375%, 6/1/38, Ser. A		1,703,475

				3,283,477

	Connecticut - 1.5%
		State Health & Educational Fac. Auth. Rev.,
	5,000	Hartford Healthcare, 5.00%, 7/1/41, Ser. A		5,330,000
	2,500	Stamford Hospital, 5.00%, 7/1/42, Ser. J		2,636,700

				7,966,700

PIMCO Municipal Income Fund Schedule of Investments

July 31, 2014 (unaudited) (continued)


Principal Amount (000s)			Value*
	District of Columbia - 0.8%
$	2,500	Dist. of Columbia Rev., Brookings Institution, 5.75%, 10/1/39	$	2,722,775
	1,595	Tobacco Settlement Financing Corp. Rev., 6.25%, 5/15/24		1,606,261

				4,329,036

	Florida - 2.1%
	4,000	Broward Cnty. Water & Sewer Utility Rev., 5.25%, 10/1/34, Ser. A (i)		4,468,360
	300	Dev. Finance Corp. Rev., Renaissance Charter School, 6.50%, 6/15/21, Ser. A		319,749
	500	Lee Cnty. Industrial Dev. Auth. Rev., Lee Community Charter Foundation, 5.375%, 6/15/37, Ser. A		500,815
	1,250	Miami-Dade Cnty. School Board Foundation, Inc., CP, 5.375%, 2/1/34, Ser. A (AGC)		1,349,813
	3,900	State Board of Education, GO, 5.00%, 6/1/38, Ser. D (i)		4,314,258

				10,952,995

	Georgia - 0.4%
	2,300	Medical Center Hospital Auth. Rev., Spring Harbor Green Island Project, 5.25%, 7/1/37		2,309,085

	Illinois - 1.5%
		Finance Auth. Rev.,
	400	OSF Healthcare System, 7.125%, 11/15/37, Ser. A		472,716
	5,000	Univ. of Chicago, 5.50%, 7/1/37, Ser. B (i)		5,618,150
	1,900	Springfield Electric Rev., 5.00%, 3/1/36		1,925,954

				8,016,820

	Indiana - 1.6%
		Finance Auth. Rev.,
	1,500	Duke Energy Indiana, Inc., 6.00%, 8/1/39, Ser. B		1,661,610
	3,000	Ohio Valley Electric Corp., 5.00%, 6/1/32, Ser. A		3,083,850
	1,000	Municipal Power Agcy. Rev., 6.00%, 1/1/39, Ser. B		1,125,550
	1,900	Vigo Cnty. Hospital Auth. Rev., Union Hospital, Inc., 7.50%, 9/1/22		2,307,341

				8,178,351

	Iowa - 1.2%
		Finance Auth. Rev.,
	532	Deerfield Retirement Community, Inc., zero coupon, 5/15/56, Ser. B, PIK		5,320
	3,500	Edgewater LLC Project, 6.75%, 11/15/37		3,645,145
	1,500	Edgewater LLC Project, 6.75%, 11/15/42		1,558,110
	1,000	Fertilizer Company Project, 5.25%, 12/1/25		1,054,190

				6,262,765

	Kansas - 0.4%
	1,000	Dev. Finance Auth. Rev., Adventist Health, 5.75%, 11/15/38		1,108,020
	871	Lenexa City, Tax Allocation, Center East Project, 6.00%, 4/1/27 (e)		261,405
	650	Manhattan Rev., Meadowlark Hills Retirement, 5.125%, 5/15/42, Ser. B		626,191

				1,995,616

	Kentucky - 0.2%
	1,000	Economic Dev. Finance Auth. Rev., Owensboro Medical Healthcare Systems, 6.375%, 6/1/40, Ser. A		1,122,200

	Louisiana - 1.1%
		Local Gov’t Environmental Facs. & Community Dev. Auth Rev.,
	1,680	Capital Projects & Equipment Acquisition, 6.55%, 9/1/25 (ACA) (b)		1,858,718
	400	Westlake Chemical Corp., 6.50%, 11/1/35, Ser. A-2		460,416
	750	Woman’s Hospital Foundation, 5.875%, 10/1/40, Ser. A		850,500
	2,000	Public Facs. Auth. Rev., Ochsner Clinic Foundation Project, 6.50%, 5/15/37		2,330,240

				5,499,874

	Maryland - 0.4%
	1,500	Economic Dev. Corp. Rev., 5.75%, 6/1/35, Ser. B		1,572,375
	650	Health & Higher Educational Facs. Auth. Rev., Charlestown Community, 6.25%, 1/1/41		711,152

				2,283,527

	Massachusetts - 0.5%
		Dev. Finance Agcy. Rev.,
	750	Foxborough Regional Charter School, 7.00%, 7/1/42, Ser. A		841,335
	103	Linden Ponds, Inc. Fac., zero coupon, 11/15/56, Ser. B (b)		783
	388	Linden Ponds, Inc. Fac., 6.25%, 11/15/39, Ser. A-1		331,647
	1,500	State College Building Auth. Rev., 5.50%, 5/1/39, Ser. A		1,681,335

				2,855,100

PIMCO Municipal Income Fund Schedule of Investments

July 31, 2014 (unaudited) (continued)


Principal Amount (000s)			Value*
	Michigan - 0.6%
$	1,500	Royal Oak Hospital Finance Auth. Rev., William Beaumont Hospital, 8.25%, 9/1/39, Ser. V (Pre-refunded @ $100, 9/1/18) (c)	$	1,935,660
	1,500	Tobacco Settlement Finance Auth. Rev., 6.00%, 6/1/48, Ser. A		1,182,585

				3,118,245

	Minnesota - 0.4%
	95	Agricultural & Economic Dev. Board Rev., Health Care Systems, 6.375%, 11/15/29, Ser. A		95,365
	1,500	St. Louis Park Rev., Nicollett Health Services, 5.75%, 7/1/39		1,648,035
	500	Washington Cnty. Housing & Redev. Auth. Rev., Birchwood & Woodbury Projects, 5.625%, 6/1/37, Ser. A		503,125

				2,246,525

	Missouri - 0.3%
	1,000	Joplin Industrial Dev. Auth. Rev., Christian Homes, Inc., 5.75%, 5/15/26, Ser. F		1,054,120
	370	Lee’s Summit, Tax Allocation, Summit Fair Project, 5.625%, 10/1/23		386,968

				1,441,088

	Nevada - 4.0%
		Clark Cnty., GO,
	5,000	4.75%, 6/1/30 (AGM)		5,191,750
	5,230	4.75%, 11/1/35 (FGIC-NPFGC) (i)		5,460,695
	9,755	Washoe Cnty., Water & Sewer, GO, 5.00%, 1/1/35 (NPFGC)		10,239,141

				20,891,586

	New Jersey - 7.2%
	16,550	Economic Dev. Auth., Special Assessment, Kapkowski Road Landfill Project, 5.75%, 4/1/31		18,177,527
		Economic Dev. Auth. Rev., Ser. Z,
	710	5.50%, 12/15/34 (AGC)		803,741
	1,290	5.50%, 12/15/34 (AGC) (Pre-refunded @ $100, 12/15/18) (c)		1,538,932
		Health Care Facs. Financing Auth. Rev.,
	500	AHS Hospital Corp., 6.00%, 7/1/37		576,735
	2,000	Robert Wood Johnson Univ. Hospital, 5.50%, 7/1/43, Ser. A		2,200,800
	2,000	State Turnpike Auth. Rev., 5.25%, 1/1/40, Ser. E		2,182,640
	6,600	Tobacco Settlement Financing Corp. Rev., 4.75%, 6/1/34, Ser. 1-A		4,917,462
	7,000	Transportation Trust Fund Auth. Rev., 5.00%, 6/15/42, Ser. B		7,364,560

				37,762,397

	New Mexico - 1.5%
	1,000	Farmington Pollution Control Rev., 5.90%, 6/1/40, Ser. D		1,103,210
	6,400	Hospital Equipment Loan Council Rev., Presbyterian Healthcare, 5.00%, 8/1/39		6,817,856

				7,921,066

	New York - 12.3%
	15,500	Hudson Yards Infrastructure Corp. Rev., 5.25%, 2/15/47, Ser. A		16,891,125
	3,000	Metropolitan Transportation Auth. Rev., 5.00%, 11/15/36, Ser. D		3,276,690
	4,200	Nassau Cnty. Industrial Dev. Agcy. Rev., Amsterdam at Harborside, 6.70%, 1/1/43, Ser. A		3,024,000
	3,000	New York City Water & Sewer System Rev., Second Generation Resolutions, 5.00%, 6/15/39, Ser. GG-1		3,310,830
		New York Liberty Dev. Corp. Rev.,
	10,000	1 World Trade Center Project, 5.00%, 12/15/41		10,870,900
	10,000	4 World Trade Center Project, 5.00%, 11/15/44		10,716,800
	7,500	Goldman Sachs Headquarters, 5.25%, 10/1/35		8,711,775
	3,000	Goldman Sachs Headquarters, 5.50%, 10/1/37		3,573,720
	3,500	State Dormitory Auth. Rev., The New School, 5.50%, 7/1/40		3,815,840

				64,191,680

	Ohio - 3.0%
	10,000	Buckeye Tobacco Settlement Financing Auth. Rev., 6.50%, 6/1/47, Ser. A-2		8,396,000
	1,000	Hamilton Cnty. Healthcare Rev., Christ Hospital Project, 5.00%, 6/1/42		1,047,380
	500	Higher Educational Fac. Commission Rev., Univ. Hospital Health Systems, 6.75%, 1/15/39, Ser. 2009-A (Pre-refunded @ $100, 1/15/15) (c)		514,655
	500	Montgomery Cnty. Rev., Miami Valley Hospital, 6.25%, 11/15/39, Ser. A (Pre-refunded @ $100, 11/15/14) (c)		508,465
	5,000	State Turnpike Commission Rev., 5.00%, 2/15/48, Ser. A-1		5,388,200

				15,854,700

	Oregon - 0.6%
	2,000	Oregon Health & Science Univ. Rev., 5.75%, 7/1/39, Ser. A		2,235,540
	600	State Department of Administrative Services, CP, 5.25%, 5/1/39, Ser. A		643,014

				2,878,554

	Pennsylvania - 5.0%
	5,000	Geisinger Auth. Rev., 5.25%, 6/1/39, Ser. A		5,487,250
	2,000	Harrisburg Auth. Rev., Harrisburg Univ. of Science, 6.00%, 9/1/36, Ser. B (e)		924,520
		Higher Educational Facs. Auth. Rev.,
	500	Edinboro Univ. Foundation, 6.00%, 7/1/43		526,310

PIMCO Municipal Income Fund Schedule of Investments

July 31, 2014 (unaudited) (continued)


Principal Amount (000s)			Value*
$	350	Thomas Jefferson Univ., 5.00%, 3/1/40	$	368,924
		Lancaster Cnty. Hospital Auth. Rev., Brethren Village Project, Ser. A,
	750	6.25%, 7/1/26		790,560
	85	6.375%, 7/1/30		89,008
	1,100	Luzerne Cnty. Industrial Dev. Auth. Rev., Pennsylvania American Water Co., 5.50%, 12/1/39		1,210,979
	7,000	Philadelphia, GO, 5.25%, 12/15/32, Ser. A (AGM)		7,781,270
		Philadelphia Hospitals & Higher Education Facs. Auth. Rev., Temple Univ. Health System, Ser. A,
	5,000	5.625%, 7/1/36		5,113,300
	1,000	5.625%, 7/1/42		1,016,840
	500	Philadelphia Water & Wastewater Rev., 5.25%, 1/1/36, Ser. A		536,685
	2,000	Turnpike Commission Rev., 5.125%, 12/1/40, Ser. D		2,140,420

				25,986,066

	Rhode Island - 4.5%
	23,800	Tobacco Settlement Financing Corp. Rev., 6.25%, 6/1/42, Ser. 2002-A		23,803,094

	South Carolina - 3.7%
	450	Jobs-Economic Dev. Auth. Rev., Lutheran Homes, 5.50%, 5/1/28		456,115
	2,200	State Ports Auth. Rev., 5.25%, 7/1/40		2,380,554
		State Public Service Auth. Rev.,
	5,000	5.50%, 12/1/53, Ser. E		5,513,050
	5,000	5.50%, 12/1/54, Ser. A		5,526,900
	5,000	Sanatee Cooper, 5.125%, 12/1/43, Ser. B		5,503,350

				19,379,969

	Tennessee - 2.2%
	940	Memphis Health Educational & Housing Fac. Board Rev., Wesley Housing Corp. Project, 6.95%, 1/1/20 (a)(b)(d)(e)(k) (acquisition cost - $932,489; purchased 6/29/01)		234,345
		Tennessee Energy Acquisition Corp. Rev.,
	5,000	5.00%, 2/1/27, Ser. C		5,602,800
	5,000	5.25%, 9/1/24, Ser. A		5,714,400

				11,551,545

	Texas - 9.8%
	1,200	Dallas Rev., Dallas Civic Center, 5.25%, 8/15/38 (AGC)		1,287,456
	5,500	Grand Parkway Transportation Corp. Rev., 5.00%, 4/1/53, Ser. B		5,870,095
		North Harris Cnty. Regional Water Auth. Rev.,
	4,200	5.25%, 12/15/33		4,592,448
	4,200	5.50%, 12/15/38		4,698,960
		North Texas Tollway Auth. Rev.,
	2,750	5.00%, 1/1/38		2,931,142
	3,000	5.25%, 1/1/44, Ser. C		3,141,330
	600	5.50%, 9/1/41, Ser. A		680,214
	6,050	5.625%, 1/1/33, Ser. A		6,734,618
	600	5.75%, 1/1/33, Ser. F		667,416
	250	San Juan Higher Education Finance Auth. Rev., 6.70%, 8/15/40, Ser. A		293,728
		State Public Finance Auth. Charter School Finance Corp. Rev., Ser. A,
	400	5.875%, 12/1/36		433,976
	2,000	Cosmos Foundation, 5.375%, 2/15/37 (Pre-refunded @ $100, 2/15/15) (c)		2,054,560
	4,000	Tarrant Cnty. Cultural Education Facs. Finance Corp. Rev., Baylor Health Care Systems Project, 6.25%, 11/15/29		4,613,560
		Texas Municipal Gas Acquisition & Supply Corp. I Rev.,
	3,500	5.25%, 12/15/23, Ser. A		4,012,260
	6,500	6.25%, 12/15/26, Ser. D		7,900,750
	1,000	Uptown Dev. Auth., Tax Allocation, Infrastructure Improvement Facs., 5.50%, 9/1/29		1,088,790
	500	Wise Cnty. Rev., Parker Cnty. Junior College Dist., 8.00%, 8/15/34		587,635

				51,588,938

	Utah - 1.5%
	7,000	Salt Lake Cnty. Rev., IHC Health Services, 5.125%, 2/15/33 (AMBAC)		7,731,710

	Virginia - 2.0%
		Fairfax Cnty. Industrial Dev. Auth. Rev., Inova Health Systems,
	6,490	5.00%, 5/15/40		7,037,107
	1,000	5.50%, 5/15/35, Ser. A		1,131,860
	1,985	Peninsula Town Center Community Dev. Auth. Rev., 6.45%, 9/1/37		2,140,882

				10,309,849

	Washington - 1.3%
		Health Care Facs. Auth. Rev.,
	700	Multicare Health Systems, 6.00%, 8/15/39, Ser. B (AGC)		816,872
	250	Seattle Cancer Care Alliance, 7.375%, 3/1/38		299,710
	2,000	Virginia Mason Medical Center, 6.125%, 8/15/37, Ser. A		2,122,960
		State Housing Finance Commission Rev., Skyline at First Hill Project, Ser. A,
	230	5.25%, 1/1/17		231,277
	3,600	5.625%, 1/1/38		3,383,856

				6,854,675

PIMCO Municipal Income Fund Schedule of Investments

July 31, 2014 (unaudited) (continued)


Principal Amount (000s)			Value*
	West Virginia - 0.2%
$	1,000	Hospital Finance Auth. Rev., Highland Hospital, 9.125%, 10/1/41	$	1,054,250

	Wisconsin - 0.1%
	500	Health & Educational Facs. Auth. Rev., Prohealth Care, Inc., 6.625%, 2/15/39		583,110

	Total Municipal Bonds & Notes (cost-$446,523,363)			495,947,904

	VARIABLE RATE NOTES (g)- 2.5%
	Iowa - 0.4%
	2,836	Finance Auth. Rev., Deerfield Retirement Community, Inc., 2.70%, 11/15/46, Ser. A		1,845,289

	Texas - 0.4%
	1,000	JPMorgan Chase Putters/Drivers Trust, GO, 8.031%, 2/1/17, Ser. 3480 (a)(d)(f)		1,240,200
	600	JPMorgan Chase Putters/Drivers Trust Rev., 8.551%, 10/1/31, Ser. 3227 (a)(d)(f)		788,232

				2,028,432

	Washington - 1.7%
	6,670	JPMorgan Chase Putters/Drivers Trust, GO, 11.734%, 8/1/28, Ser. 3388 (a)(d)(f)		8,959,544

	Total Variable Rate Notes (cost-$12,392,945)			12,833,265

	SHORT-TERM INVESTMENTS - 2.9%
	Repurchase Agreements - 1.7%
	9,100	Citigroup Global Markets, Inc., dated 7/31/14, 0.13%, due 8/1/14, proceeds $9,100,033; collateralized by U.S. Treasury Notes, 1.25%, due 10/31/18, valued at $9,297,329 including accrued interest (cost-$9,100,000)		9,100,000

	U.S. Government Agency Securities (l)- 0.6%
	2,002	Federal Home Loan Bank Discount Notes, 0.079%, 10/8/14-10/29/14		2,001,693
	1,100	Freddie Mac Discount Notes, 0.076%, 10/24/14		1,099,807

	Total U.S. Government Agency Securities (cost-$3,101,500)			3,101,500

	U.S. Treasury Obligations - 0.4%
	1,900	U.S. Treasury Notes, 0.50%, 8/15/14 (cost-$1,900,265)		1,900,371

	Variable Rate Demand Note - 0.2%
	South Carolina - 0.2%
	1,290	Educational Facs. Auth. Rev., Furman Univ., 0.05%, 8/1/14 (final maturity 10/1/39), Ser. B (g)(h) (cost-$1,290,000)		1,290,000

	Total Short-Term Investments (cost-$15,391,765)			15,391,871

	Total Investments (cost-$474,308,073) (m)-100.0%		$	524,173,040

PIMCO Municipal Income Fund Schedule of Investments

July 31, 2014 (unaudited) (continued)

Industry classification of portfolio holdings as a percentage of total investments was as follows:


Revenue Bonds:
Health, Hospital & Nursing Home Revenue	22.4	%
Miscellaneous Revenue	15.0
Highway Revenue Tolls	7.3
Natural Gas Revenue	5.7
Tobacco Settlement Funded	4.6
College & University Revenue	4.0
Port, Airport & Marina Revenue	3.9
Water Revenue	3.7
Industrial Revenue	3.3
Miscellaneous Taxes	3.2
Electric Power & Light Revenue	2.9
Sewer Revenue	1.7
Lease (Appropriation)	0.7
Transit Revenue	0.6
Ad Valorem Property Tax	0.4
Local or Guaranteed Housing	0.0

Total Revenue Bonds			79.4	%
General Obligation			13.6
Special Assessment			3.5
Repurchase Agreements			1.7
U.S. Government Agency Securities			0.6
Certificates of Participation			0.5
U.S. Treasury Obligations			0.4
Tax Allocation			0.3

Total Investments			100.0	%

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. 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.

The Board of Trustees (the “Board”) has adopted procedures for valuing portfolio securities and other financial instruments in circumstances where market quotes are not readily available, and has delegated the responsibility for applying the valuation methods to Allianz Global Investors Fund Management LLC (the “Investment Manager”) and Pacific Investment Management Company LLC (the “Sub-Adviser”). The Fund’s Valuation Committee was established by the Board to oversee the implementation of the Fund’s valuation methods and to make fair value determinations on behalf of the Board, as instructed. The Sub-Adviser monitors the continued appropriateness of methods applied and determines if adjustments should be made in light of market changes, events affecting the issuer, or other factors. If the Sub-Adviser determines that a valuation method may no longer be appropriate, another valuation method may be selected, or the Valuation Committee will be convened to consider the matter and take any appropriate action in accordance with procedures set forth by the Board. The Board shall review the appropriateness of the valuation methods and these methods may be amended or supplemented from time to time by the Valuation Committee.

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 premium or discount based on 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 investments may differ from the value that would be realized if the investments were sold, and these differences could be material. 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 $11,222,321, representing 2.1% of total investments.

(b)

Illiquid.

(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).

(d)	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.

(e)	In default.

(f)	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 July 31, 2014.

(g)

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 July 31, 2014.

(h)	Date shown is date of next put.

(i)	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.

(j)	Step Bond—Coupon is a fixed rate for an initial period then resets at a specific date and rate.

(k)	Restricted. The aggregate acquisition cost of such security is $932,489. The aggregate value is $234,345, representing less than 0.05% of total investments.

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

(m)

At July 31, 2014, the cost basis of portfolio securities for federal income tax purposes was $474,308,073. Gross unrealized appreciation was $57,247,925; gross unrealized depreciation was $7,382,958; and net unrealized appreciation was $49,864,967. The difference between book and tax cost was attributable to the differing treatment of Inverse Floater transactions.

Glossary:

ACA—insured by American Capital Access Holding Ltd.

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

NPFGC—insured by National Public Finance Guarantee Corp.

PIK—Payment-in-Kind

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, which may include, but are not limited to, quoted prices for similar assets or liabilities, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates or other market corroborated inputs

•

Level 3 – valuations based on significant unobservable inputs (including the Sub-Adviser’s or Valuation Committee’s own assumptions and securities whose price was determined by using a single broker’s quote)

The valuation techniques used by the Fund to measure fair value during the three months ended July 31, 2014 were intended to maximize the use of observable inputs and to minimize the use of unobservable inputs.

The Fund’s policy is to recognize transfers between levels at the end of the reporting period. An investment asset’s or liability’s level within the fair value hierarchy is based on the lowest level input, individually or in aggregate, that is significant to the 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 techniques used. Investments categorized as Level 1 or 2 as of period end may have been transferred between Levels 1 and 2 since the prior period due to changes in the valuation method utilized in valuing the investments.

The inputs or methodology used for valuing securities are 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 within Level 2 and Level 3, in accordance with Generally Accepted Accounting Principles.

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.

Government Sponsored Enterprise and Mortgage-Backed Securities — Government sponsored enterprise and mortgage-backed securities are valued by independent pricing services using pricing models based on inputs that include issuer type, coupon, cash flows, mortgage prepayment projection tables and Adjustable Rate Mortgage evaluations that incorporate index data, periodic life caps and the next coupon reset date. To the extent that these inputs are observable, the values of government sponsored enterprise and mortgage-backed securities are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

Municipal Bonds & Notes and Variable Rate Notes — Municipal bonds & 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, state of issuance, benchmark yield curves, and bond or note insurance. To the extent that these inputs are observable, the values of municipal bonds & 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.

A summary of the inputs used at July 31, 2014 in valuing the Fund’s assets and liabilities is listed below (refer to the Schedule of Investments for more detailed information on Investments in Securities):


	Level 1 - Quoted Prices		Level 2 - Other Significant Observable Inputs		Level 3 - Significant Unobservable Inputs		Value at 7/31/14
Investments in Securities - Assets
Municipal Bonds & Notes:
Alaska	$	—	$	4,281,763	$	—	$	4,281,763
Iowa		—		6,262,765		—		6,262,765
Tennessee		—		11,317,200		234,345		11,551,545
All Other		—		473,851,831		—		473,851,831
Variable Rate Notes		—		12,833,265		—		12,833,265
Short-Term Investments		—		15,391,871		—		15,391,871

Totals	$	—	$	523,938,695	$	234,345	$	524,173,040

At July 31, 2014, there were no transfers between Levels 1 and 2.

A roll forward of fair value measurements using significant unobservable inputs (Level 3) for the three months ended July 31, 2014, was as follows:


	Beginning Balance 4/30/14		Purchases		Sales		Accrued Discount (Premiums)		Net Realized Gain (Loss)		Net Change in Unrealized Appreciation/ Depreciation			Transfers into Level 3		Transfers out of Level 3		Ending Balance 7/31/14
Investments in Securities - Assets
Municipal Bonds & Notes:
Alaska	$	405,000	$	—	$	—	$	—	$	—	$	—		$	—	$	405,000		—
Iowa		5,320		—		—		—		—		—			—		5,320		—
Tennessee		234,684		—		—		—		—		(339	)		—		—		234,345

Totals	$	645,004	$	—	$	—	$	—	$	—	$	(339	)	$	—	$	410,320	$	234,345

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 at July 31, 2014:

Ending
Balance
at 7/31/14

Valuation
Technique Used

Unobservable
Inputs

Input
Values

Investments in Securities - Assets

Municipal Bonds & Notes

234,345

Benchmark Pricing

Base Price

24.94

The net change in unrealized appreciation/depreciation of Level 3 investments held at July 31, 2014 was $(339).

Item 2. Controls and Procedures

(a) The registrant’s President, Principal 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 control 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.


PIMCO Municipal Income Fund

By:		/s/ Peter G. Strelow
		Peter G. Strelow, President, Principal Executive Officer

Date: September 26, 2014

By:		/s/ William G. Galipeau
		William G. Galipeau, Treasurer, Principal Financial & Accounting Officer

Date: September 26, 2014

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/ Peter G. Strelow
		Peter G. Strelow, President, Principal Executive Officer

Date: September 26, 2014

By:		/s/ William G. Galipeau
		William G. Galipeau, Treasurer, Principal Financial & Accounting Officer

Date: September 26, 2014