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<SEC-DOCUMENT>0000930413-06-007472.txt : 20061027
<SEC-HEADER>0000930413-06-007472.hdr.sgml : 20061027
<ACCEPTANCE-DATETIME>20061027092421
ACCESSION NUMBER:		0000930413-06-007472
CONFORMED SUBMISSION TYPE:	N-Q
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20060831
FILED AS OF DATE:		20061027
DATE AS OF CHANGE:		20061027
EFFECTIVENESS DATE:		20061027

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PIMCO MUNICIPAL INCOME FUND II
		CENTRAL INDEX KEY:			0001170299
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			MA
		FISCAL YEAR END:			0430

	FILING VALUES:
		FORM TYPE:		N-Q
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-21076
		FILM NUMBER:		061167349

	BUSINESS ADDRESS:	
		STREET 1:		1345 AVENUE OF THE AMERICAS, 47TH FL
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10105
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-Q
<SEQUENCE>1
<FILENAME>c44841_nq.htm
<TEXT>

<HTML>
<HEAD>
   <TITLE>c44841 -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing</TITLE>
</HEAD>

<BODY bgcolor="#ffffff">


<A name="page_1"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=1>
<TR valign="bottom">
	<TD width=6% align=left>&nbsp;

	</TD>
	<TD width=78% align=center>
<B><FONT size=2 face="serif">UNITED STATES</FONT></B>
	</TD>
	<TD width=16% align=right>
      <center>
        <U><FONT size=1 face="serif">OMB APPROVAL</FONT></U>
      </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=center>
<B><FONT size=2 face="serif">SECURITIES AND EXCHANGE COMMISSION</FONT></B>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">OMB Number: 3235-0578</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=center>
<B><FONT size=2 face="serif">Washington, DC 20549</FONT></B>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Expires: May 31, 2007</FONT>
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
  <TD align=left><font size=1 face="serif">Estimated average burden </font></TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=center><b><font size=2 face="serif">FORM N-Q</font></b></TD>
  <TD align=left><font size=1 face="serif">hours per response: 21.09</font></TD>
</TR>
<TR valign="top">
  <TD></TD>
  <TD colspan=2>&nbsp;</TD>
</TR>
<TR valign="top">
  <TD></TD>
  <TD><center>
    <b><font size=2 face="serif">QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED</font></b>
  </center></TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="top">
  <TD></TD>
  <TD><center>
    <b><font size=2 face="serif">MANAGEMENT INVESTMENT COMPANY </font></b>
  </center></TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<P>

<FONT size=2 face="serif">Investment Company Act File Number: 811-21076</FONT></P>

<P align="left">
<FONT size=2 face="serif">Registrant Name: PIMCO Municipal Income Fund II </FONT></P>
<P align="left">
<FONT size=2 face="serif">Address of Principal Executive Offices: 1345 Avenue of the Americas New York, New York 10105 </FONT></P>
<P align="left">
<FONT size=2 face="serif">Name and Address of Agent for Service: Lawrence G. Altadonna &#150; 1345 Avenue of the Americas New York, New York 10105 </FONT></P>

<FONT size=2 face="serif">Registrant&#146;s telephone number, including area code: 212-739-3371 </FONT><p></P>

<P>
<FONT size=2 face="serif">Date of Fiscal Year End: May 31, 2007</FONT></p>
<P>
<FONT size=2 face="serif">Date of Reporting Period: August 31, 2006</FONT></P>

<P align="left">
<FONT size=2 face="serif">Form N-Q is to be used by the registered management investment company, other than a small business investment company registered on Form N-5 (</FONT><FONT size=2 face="sans-serif">&#167;&#167;</FONT><FONT size=2
face="serif"> 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b 1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1
- -5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles. </FONT></P>
<P align="left">
<FONT size=2 face="serif">A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to the collection of information contained in Form N-Q unless
the Form displays a currently valid Office of Management and Budget (&#147;OMB&#148;) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the
Secretary, Securities and Exchange Commission, 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. </FONT><FONT size=2 face="sans-serif">&#167;
</FONT><FONT size=2 face="serif">3507. </FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P>
<FONT size=2 face="sans-serif">Item 1. Schedule of Investments</FONT>
<p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan="4" align=left>
      <B><FONT size=2 face="sans-serif">PIMCO Municipal Income Fund II Schedule of Investments</FONT></B>
	</TD>
	<TD width="1%">&nbsp;
	</TD>
	<TD width="12%" align=left>

	  <center>
    </center></TD>
	<TD width="1%">&nbsp;
	</TD>
	<TD width="10%" align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan="4" align=left>
      <FONT size=1 face="sans-serif">August 31, 2006 (unaudited)</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD colspan=4>
      <HR noshade size=1>
	</TD>
	<TD><HR noshade size=1>
	</TD>
	<TD>
      <HR noshade size=1>
	</TD>
	<TD><HR noshade size=1>
	</TD>
	<TD>
      <HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD width="7%" align=right>
      <center>
        <FONT size=1 face="sans-serif">Principal</FONT>
      </center></TD>
	<TD width="1%" align=left>&nbsp;

	</TD>
	<TD width="1%">&nbsp;
	</TD>
	<TD width="67%" align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
      <center>
        <FONT size=1 face="sans-serif">Amount</FONT>
      </center></TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <center>
        <FONT size=1 face="sans-serif">Credit Rating</FONT>
      </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
      <center>
        <FONT size=1 face="sans-serif">(000</FONT><font size=1 face="sans-serif">)</font>
      </center></TD>
	<TD align=left>&nbsp;
</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <center>
        <FONT size=1 face="sans-serif">(Moody's/S&amp;P)</FONT>
      </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <center>
        <FONT size=1 face="sans-serif">Value*</FONT>
      </center></TD>
</TR>
<TR>
	<TD>
      <HR noshade size=3>
	</TD>
	<TD>
      <HR noshade size=3>
	</TD>
	<TD><HR noshade size=3>
	</TD>
	<TD>
      <HR noshade size=3>
	</TD>
	<TD><HR noshade size=3>
	</TD>
	<TD>
      <HR noshade size=3>
	</TD>
	<TD><HR noshade size=3>
	</TD>
	<TD>
      <HR noshade size=3>
	</TD>
</TR>
<TR>
	<TD colspan=8>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan="4" align=left>
      <div align="left"><B><FONT size=2 face="sans-serif">MUNICIPAL BONDS &amp; NOTES&#151;91.5%</FONT></B>
      </div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=1 face="sans-serif">Alabama&#151;3.0%</FONT></B>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="sans-serif">&#36;</FONT><FONT size=1 face="sans-serif">10,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Birmingham Baptist Medical Centers Special Care Facs. Financing Auth. Rev.,</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.00%, 11/15/30, Ser. A</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <center>
        <FONT size=1 face="sans-serif">Baa1/NR</FONT>
      </center></TD>
	<TD>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">&#36;10,154,000</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Birmingham Waterworks &amp; Sewer Board Rev., Ser. B (MBIA),</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="sans-serif">1,145</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.00%, 1/1/27</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <center>
        <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
      </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">1,190,800</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="sans-serif">10,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.00%, 1/1/37</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <center>
        <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
      </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">10,288,400</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="sans-serif">1,750</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Huntsville Health Care Auth. Rev., 5.75%, 6/1/32, Ser. B</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <center>
        <FONT size=1 face="sans-serif">A2/NR</FONT>
      </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">1,882,125</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="sans-serif">16,580</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Jefferson Cnty. Sewer Rev.,</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">4.75%, 2/1/38, Ser. B, (Pre-refunded @ &#36;100, 8/1/12) (FGIC)(a)</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <center>
        <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
      </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">17,522,076</FONT>
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	  <center>
    </center></TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">41,037,401</FONT>
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	  <center>
    </center></TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=1 face="sans-serif">Alaska&#151;0.3%</FONT></B>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="sans-serif">3,550</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">State Housing Finance Corp. Rev., 5.25%, 6/1/32, Ser. C (MBIA)</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <center>
        <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
      </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">3,607,013</FONT>
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	  <center>
    </center></TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=1 face="sans-serif">Arizona&#151;0.1%</FONT></B>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="sans-serif">1,300</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Health Facs. Auth. Hospital System Rev., 5.75%, 12/1/32</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <center>
        <FONT size=1 face="sans-serif">NR/BBB</FONT>
      </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">1,375,452</FONT>
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	  <center>
    </center></TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=1 face="sans-serif">Arkansas&#151;0.1%</FONT></B>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="sans-serif">13,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Arkansas Dev. Finance Auth. Rev., zero coupon, 7/1/46 (AMBAC)</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <center>
        <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
      </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">1,826,370</FONT>
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	  <center>
    </center></TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=1 face="sans-serif">California&#151;2.3%</FONT></B>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="sans-serif">9,610</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Alameda Corridor Transportation Auth. Rev.,</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">zero coupon, 10/1/16, Ser. A (AMBAC)</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <center>
        <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
      </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">6,360,955</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Golden State Tobacco Securitization Corp. Tobacco Settlement Rev., Ser. 2003-A-1,</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="sans-serif">3,300</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">6.25%, 6/1/33</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <center>
        <FONT size=1 face="sans-serif">Baa3/BBB</FONT>
      </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">3,628,086</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="sans-serif">9,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">6.75%, 6/1/39</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <center>
        <FONT size=1 face="sans-serif">Baa3/BBB</FONT>
      </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">10,153,530</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="sans-serif">1,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Rancho Cucamonga Community Facs. Dist., Special Tax,</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">6.30%, 9/1/23, Ser. A</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <center>
        <FONT size=1 face="sans-serif">NR/NR</FONT>
      </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">1,059,110</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="sans-serif">4,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Southern California Public Power Auth., Transmission Project Rev.,</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">zero coupon, 7/1/13</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <center>
        <FONT size=1 face="sans-serif">Aa3/A+</FONT>
      </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">3,055,280</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Univ. of California Rev.,</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="sans-serif">4,430</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">4.75%, 5/15/37, Ser. C (MBIA)</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <center>
        <FONT size=1 face="sans-serif">AAA/AAA</FONT>
      </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">4,512,620</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="sans-serif">2,900</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">4.75%, 5/15/38, Ser. B</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <center>
        <FONT size=1 face="sans-serif">Aa3</FONT><FONT size=1 face="sans-serif">/AA-</FONT>
      </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">2,942,746</FONT>
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	  <center>
    </center></TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">31,712,327</FONT>
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	  <center>
    </center></TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=1 face="sans-serif">Colorado&#151;5.1%</FONT></B>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="sans-serif">30,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Dawson Ridge Dist. No. 1, GO, zero coupon, 10/1/22, Ser. A</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <center>
        <FONT size=1 face="sans-serif">Aaa/NR</FONT>
      </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">14,651,100</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="sans-serif">5,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Denver City &amp; Cnty., CP,</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.50%, 12/1/25, Ser. B, (Pre-refunded @ &#36;101, 12/1/10) (AMBAC)(a)</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <center>
        <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
      </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">5,414,900</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Health Facs. Auth. Rev.,</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="sans-serif">25,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Catholic Health Initiatives, 5.50%, 3/1/32</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <center>
        <FONT size=1 face="sans-serif">Aa2/AA</FONT>
      </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">26,628,000</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="sans-serif">18,305</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Exempla, Inc., 5.625%, 1/1/33, Ser. A</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <center>
        <FONT size=1 face="sans-serif">A1</FONT><font size=1 face="sans-serif">/A-</font>
      </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">19,240,569</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="sans-serif">6,500</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Retirement Facs. Rev., Liberty Height, zero coupon, 7/15/22</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <center>
        <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
      </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">3,204,435</FONT>
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	  <center>
    </center></TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">69,139,004</FONT>
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	  <center>
    </center></TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=1 face="sans-serif">District of Columbia&#151;1.3%</FONT></B>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="sans-serif">17,500</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Washington D.C. Convention Center Auth. Tax Rev., 4.75%, 10/1/28 (AMBAC)</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <center>
        <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
      </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">17,633,175</FONT>
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	  <center>
    </center></TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=1 face="sans-serif">Florida&#151;3.9%</FONT></B>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="sans-serif">6,520</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Brevard Cnty. Health Facs. Auth. Rev., 5.00%, 4/1/34</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <center>
        <FONT size=1 face="sans-serif">A2</FONT><font size=1 face="sans-serif">/A</font>
      </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">6,730,009</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Highlands Cnty. Health Facs. Auth. Rev.,</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="sans-serif">2,830</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Adventist, 5.00%, 11/15/31, Ser. C</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <center>
        <FONT size=1 face="sans-serif">A2</FONT><font size=1 face="sans-serif">/A+</font>
      </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">2,903,212</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="sans-serif">8,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Adventist/Sunbelt, 6.00%, 11/15/31, Ser. A, (Pre-refunded @ &#36;101, 11/15/11) (a)</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <center>
        <FONT size=1 face="sans-serif">A2/A+</FONT>
      </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="sans-serif">8,939,600</FONT>
	</TD>
</TR>
</TABLE>
<BR>


<br><HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan="4">
          <B><FONT size=2 face="sans-serif">PIMCO Municipal Income Fund II Schedule of Investments</FONT></B>
    </TD>
        <TD width="1%">&nbsp;
  </TD>
        <TD width="13%" align=left>

          <center>
        </center></TD>
        <TD width="1%">&nbsp;
  </TD>
        <TD width="11%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="4">
          <FONT size=1 face="sans-serif">August 31, 2006 (unaudited)</FONT>
    </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="7%" align=right>
          <center>
            <FONT size=1 face="sans-serif">Principal</FONT>
          </center></TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
  </TD>
        <TD width="64%" align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Amount</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Credit Rating</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">(000</FONT><font size=1 face="sans-serif">)</font>
          </center></TD>
        <TD align=left>&nbsp;
</TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">(Moody's/S&amp;P)</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Value*</FONT>
          </center></TD>
</TR>
<TR>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Florida&#151;(continued)</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">&#36;</FONT><FONT size=1 face="sans-serif">&nbsp;</FONT><FONT size=1 face="sans-serif">2,335</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Hillsborough Cnty. Industrial Dev. Auth., Pollution Control Rev.,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Tampa Electric Co. Project, 5.50%, 10/1/23</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Baa2/BBB-</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">&#36;2,448,878</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">635</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Hillsborough Cnty. Industrial Dev. Rev., Health Fac. Project,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.625%, 8/15/23</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Baa2/BBB</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">661,632</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">7,135</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Jacksonville Health Facs. Auth. Rev., 5.25%, 11/15/32, Ser. A</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

 <center>
   <FONT size=1 face="sans-serif">Aa2</FONT><font size=1 face="sans-serif">/AA</font>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">7,495,960</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">11,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Lakeland Hospital System Rev., Regional Health System,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.50%, 11/15/32</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>          <center>
              <FONT size=1 face="sans-serif">A2/NR</FONT>
      </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">12,253,250</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">3,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Leesburg Hospital Rev., Leesburg Regional Medical Center Project,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.50%, 7/1/32</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Baa1/BBB+</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">3,114,570</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Orange Cnty. Health Facs. Auth. Rev., Adventist Health System,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">2,550</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.625%, 11/15/32</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">A2</FONT><font size=1 face="sans-serif">/A+</font>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">2,731,279</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">6.25%, 11/15/24</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">A2</FONT><font size=1 face="sans-serif">/A+</font>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">5,559,150</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">1,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Winter Springs Water &amp; Sewer Rev., zero coupon, 10/1/29 (FGIC)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">521,805</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">53,359,345</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Georgia&#151;0.8%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">4,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Atlanta Water &amp; Wastewater Rev., 5.00%, 11/1/39, Ser. A (MBIA)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">4,110,680</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">1,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Grantor Trust Gov't, CP, 4.75%, 6/1/28, Ser. A (MBIA)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,583,700</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">9,600</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Richmond Cnty. Dev. Auth. Rev., zero coupon, 12/1/21</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/NR</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">4,873,152</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">10,567,532</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Hawaii&#151;1.4%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">19,170</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Honolulu City &amp; Cnty. Wastewater System Rev., First Board Resolution,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">4.75%, 7/1/28 (FGIC)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/NR</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">19,523,878</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Illinois&#151;21.3%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Central Lake Cnty. Water Agcy. Rev., Ser. A (AMBAC),</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">3,610</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.125%, 5/1/28</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/NR</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">3,791,186</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">8,150</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.125%, 5/1/32</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/NR</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">8,518,624</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">5,050</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Chicago, GO, 5.125%, 1/1/29, Ser. A (FGIC)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">5,223,821</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Chicago, Lake Shore East, Special Assessment,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">3,162</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">6.625%, 12/1/22</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">NR/NR</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">3,413,316</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">6,700</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">6.75%, 12/1/32</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">NR/NR</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">7,239,283</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">5,110</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Chicago, Neighborhoods Alive 21 Project, GO, 5.00%, 1/1/33 (AMBAC)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">5,277,148</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Chicago Board of Education School Reform, GO (FGIC),</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">15,535</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">zero coupon, 12/1/16, Ser. A</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">10,090,759</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">zero coupon, 12/1/28, Ser. A</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,791,300</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">4,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">zero coupon, 12/1/31</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,383,075</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Chicago City Colleges, GO (FGIC),</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">32,670</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">zero coupon, 1/1/37</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">7,987,815</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">29,145</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">zero coupon, 1/1/38</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">6,781,750</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">32,670</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">zero coupon, 1/1/39</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">7,256,334</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">7,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Chicago Midway Airport Rev., 5.00%, 1/1/31, Ser. B (MBIA)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">7,165,410</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Cicero, GO, 5.25%, 12/1/31 (MBIA)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">5,320,850</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">10,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">City of Springfield Rev., 5.00%, 3/1/35 (MBIA)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">AAA/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">10,437,500</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Dev. Finance Auth. Retirement Housing Rev., Regency Park,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">10,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">zero coupon, 7/15/23</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">NR/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">4,660,800</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">134,650</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">zero coupon, 7/15/25</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">NR/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">56,901,744</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Health Facs. Auth. Rev.,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Condell Medical Center Rev., 5.50%, 5/15/32</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Baa2/NR</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">5,192,300</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">20,100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Elmhurst Memorial Healthcare, 5.625%, 1/1/28</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>          <center>
              <FONT size=1 face="sans-serif">A2</FONT><font size=1 face="sans-serif">/NR</font>
      </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">21,341,778</FONT>
        </TD>
</TR>
</TABLE>
<BR>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


<hr noshade size=1>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left colspan=4>
<B><FONT size=2 face="sans-serif">PIMCO Municipal Income Fund II Schedule of Investments</FONT></B>
        </TD>
        <TD width="1%">&nbsp;
  </TD>
        <TD width="13%" align=left>

          <center>
        </center></TD>
        <TD width="1%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
  </TD>
        <TD width="11%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left colspan=4>
<FONT size=1 face="sans-serif">August 31, 2006 (unaudited)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="7%" align=right>
          <center>
            <FONT size=1 face="sans-serif">Principal</FONT>
          </center></TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
  </TD>
        <TD width="63%" align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Amount</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Credit Rating</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">(000)</FONT>
          </center></TD>
        <TD align=left>&nbsp;
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">(Moody's/S&amp;P)</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Value*</FONT>
          </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR align="center" size=3 noshade>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Illinois&#151;(continued)</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Met. Pier &amp; Exposition Auth. Rev. (MBIA),</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">&#36;60,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">zero coupon, 12/15/30</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">&#36;19,380,000</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">50,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">zero coupon, 12/15/33</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">13,896,000</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">2,460</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">zero coupon, 6/15/38</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">548,358</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">4,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Schaumburg, GO, 5.00%, 12/1/41, Ser. B (FGIC)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">4,656,240</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">10,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">State, GO, 5.00%, 3/1/34, Ser. A</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aa3/AA</FONT>
          </center></TD>
        <TD align=left>&nbsp;
</TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">10,340,400</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">68,470</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">State Sports Facs. Auth. Rev., zero coupon, 6/15/30 (AMBAC)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">62,000,270</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">290,596,061</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Indiana&#151;0.6%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Brownsburg 1999 School Building Corp. Rev., Ser. A,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">(Pre-refunded @ &#36;100, 9/15/13) (FSA)(a),</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <div align="left"><FONT size=1 face="sans-serif">&nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif"></FONT>&nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif"></FONT>5.00%, 9/15/25</FONT>
          </div></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,078,480</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <div align="left"><FONT size=1 face="sans-serif">&nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif"></FONT>&nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif"></FONT>5.25%, 3/15/25</FONT>
          </div></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">2,187,620</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">4,125</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Fort Wayne Pollution Control Rev., 6.20%, 10/15/25</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Caa1/B-</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">4,186,628</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">State Bank Rev., Hendricks, 5.25%, 4/1/30, Ser. D (AMBAC)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">525,560</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">7,978,288</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Iowa&#151;3.9%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">46,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Tobacco Settlement Auth. of Iowa Rev., zero coupon, 6/1/34, Ser. B</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Baa3/BBB</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">43,813,160</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">8,850</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Tobacco Settlement Auth. Rev.,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.60%, 6/1/35, Ser. B, (Pre-refunded @ &#36;101, 6/1/11) (a)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Baa3/AAA</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">9,640,128</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">53,453,288</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Kansas&#151;0.2%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">2,800</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Univ. of Kansas, Hospital Auth. Health Facs. Rev., 5.625%, 9/1/32</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">NR/A-</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">2,983,316</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Kentucky&#151;0.8%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Economic Dev. Finance Auth. Hospital Facs. Rev.,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">2,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Catholic Healthcare Partners, 5.25%, 10/1/30</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aa3</FONT><font size=1 face="sans-serif">/AA-</font>
          </center></TD>
        <TD align=left>&nbsp;
</TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">2,606,625</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">7,855</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">St. Luke's Hospital, 6.00%, 10/1/19</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">A3/A</FONT>
          </center></TD>
        <TD align=left>&nbsp;
</TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">8,751,805</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">11,358,430</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Louisiana&#151;4.4%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">20,400</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Public Facs. Auth. Rev., Ochsner Clinic Foundation, 5.50%, 5/15/32, Ser. B</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">A3/NR</FONT>
          </center></TD>
        <TD align=left>&nbsp;
</TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">21,136,644</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">36,395</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Tobacco Settlement Financing Corp. Rev., 5.875%, 5/15/39, Ser. 2001-B</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Baa3/BBB</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">38,403,640</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">59,540,284</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Maryland&#151;0.1%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">State Health &amp; Higher Educational Facs. Auth. Rev., Adventist Healthcare,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.75%, 1/1/25, Ser. A</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Baa2/NR</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,063,650</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Massachusetts&#151;2.9%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">1,300</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Bay Transportation Auth. Rev., General Transportation System,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">4.75%, 3/1/21, Ser. A (MBIA)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,328,457</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">State College Building Auth. Project Rev., Ser. B (XLCA),</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">5,560</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.50%, 5/1/28</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">6,528,385</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">7,645</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.50%, 5/1/33</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">9,010,244</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.50%, 5/1/39</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">5,967,550</FONT>
        </TD>
</TR>
</TABLE>
<BR>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left colspan=4>
<B><FONT size=2 face="sans-serif">PIMCO Municipal Income Fund II Schedule of Investments</FONT></B>
        </TD>
        <TD width="1%">&nbsp;
  </TD>
        <TD width="13%" align=left>

          <center>
        </center></TD>
        <TD width="1%">&nbsp;
  </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left colspan=4>
<FONT size=1 face="sans-serif">August 31, 2006 (unaudited)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="7%" align=right>
          <center>
            <FONT size=1 face="sans-serif">Principal</FONT>
          </center></TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
  </TD>
        <TD width="65%" align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Amount</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Credit Rating</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">(000)</font>
        </center></TD>
        <TD align=left>&nbsp;
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">(Moody's/S&amp;P)</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Value*</FONT>
          </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Massachusetts&#151;(continued)</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">&#36;4,295</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">State Turnpike Auth. Rev., 4.75%, 1/1/34, Ser. A (AMBAC)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">&#36;4,320,942</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">12,050</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">State Water Res. Auth. Rev., 4.75%, 8/1/37, Ser. A (FSA)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">12,103,864</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">39,259,442</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Michigan&#151;2.6%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Detroit City School Dist., GO, Ser. A (a),</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">8,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.00%, 5/1/32, (Pre-refunded @ &#36;100, 5/1/13) (FGIC)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">9,135,630</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">1,750</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.125%, 5/1/31, (Pre-refunded @ &#36;100, 5/1/12) (FSA)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,874,215</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">2,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Detroit Water Supply System Rev., 5.00%, 7/1/30, Ser. A (FGIC)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">2,581,875</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">State Hospital Finance Auth. Rev.,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Ascension Health, 5.25%, 11/15/26, Ser. B</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aa2/AA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">5,243,550</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Oakwood Group, Ser. A,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">13,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.75%, 4/1/32</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">A2</FONT><font size=1 face="sans-serif">/A</font>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">14,316,210</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">1,925</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">6.00%, 4/1/22</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">A2/A</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">2,088,721</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">35,240,201</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Mississippi&#151;0.3%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">3,605</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Business Finance Corp., Pollution Control Rev., 5.875%, 4/1/22</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Ba1</FONT><font size=1 face="sans-serif">/BBB-</font>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">3,610,263</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Dev Bank Special Obligation, Projects &amp; Equipment Acquisitions Rev.,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.00%, 7/1/24 (AMBAC)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,016,490</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">4,626,753</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Missouri&#151;0.2%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">940</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Hanley Road &amp; North of Folk Ave Transportation Dist. Rev., 5.00%, 10/1/25</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">NR/NR</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">940,451</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">1,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">St. Louis Parking Facs. Rev., Downtown Parking Fac., 6.00%, 2/1/28</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">NR/NR</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,523,355</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">2,463,806</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Nevada&#151;1.9%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">3,400</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Clark Cnty., GO, 5.00%, 6/1/31 (FGIC)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">3,497,852</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Reno Transportation Project Rev., (Pre-refunded @ &#36;100, 6/1/12) (AMBAC)(a),</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">3,960</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.125%, 6/1/27</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">4,255,376</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.125%, 6/1/32</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">2,149,180</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">3,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.125%, 6/1/37</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">3,761,065</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">7,570</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.25%, 6/1/41</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">8,183,170</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">3,290</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Truckee Meadows Water Auth. Rev., 5.125%, 7/1/30, Ser. A (FSA)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">3,428,608</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">25,275,251</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">New Hampshire&#151;0.2%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Health &amp; Education Facs. Auth., Catholic Medical Center,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">360</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">6.125%, 7/1/32</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Baa1/BBB+</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">393,376</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">2,640</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">6.125%, 7/1/32, (Pre-refunded @ &#36;101, 6/1/12) (a)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Baa1/BBB+</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">2,983,226</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">3,376,602</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">New Jersey&#151;2.6%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Camden Cnty. Improvement Auth. Rev., Cooper Health System,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">(Pre-refunded @ &#36;102, 2/15/07) (a),</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">20</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.875%, 2/15/15</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Baa3/BBB</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">20,588</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">40</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">6.00%, 2/15/27</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Baa3/BBB</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">41,197</FONT>
        </TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left colspan=4>
<B><FONT size=2 face="sans-serif">PIMCO Municipal Income Fund II Schedule of Investments</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left colspan=4>
<FONT size=1 face="sans-serif">August 31, 2006 (unaudited)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Principal</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Amount</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Credit Rating</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">(000)</FONT>
          </center></TD>
        <TD align=left>&nbsp;
</TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">(Moody's/S&amp;P)</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Value*</FONT>
          </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">New Jersey&#151;(continued)</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Economic Dev. Auth., Kapkowski Landfill,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">&#36;4,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.75%, 10/1/21</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Baa3/NR</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">&#36;4,430,040</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">11,405</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.75%, 4/1/31</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Baa3/NR</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">12,475,017</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Economic Dev. Auth. Rev., Arbor Glen,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">525</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">6.00%, 5/15/28</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">NR/NR</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">541,139</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">225</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">6.00%, 5/15/28, Ser. A, (Pre-refunded @ &#36;102, 5/15/09) (a)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">NR/NR</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">242,386</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">3,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">State Educational Facs. Auth. Rev., 6.00%, 7/1/25, Ser. D</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">NR/NR</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">3,822,280</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Tobacco Settlement Financing Corp. Rev.,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">1,285</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">6.00%, 6/1/37</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Baa3/BBB</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,363,398</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">3,095</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">6.125%, 6/1/42</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Baa3/BBB</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">3,301,436</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">6,150</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">6.25%, 6/1/43</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Baa3/BBB</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">6,716,661</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">2,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">6.75%, 6/1/39</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Baa3/BBB</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">2,801,950</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">35,756,092</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">New Mexico&#151;0.4%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Farmington Pollution Control Rev., 5.80%, 4/1/22</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Baa2/BBB</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">5,054,050</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">New York&#151;2.9%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">1,200</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Erie Cnty. Industrial Dev. Agcy., Orchard Park Rev., 6.00%, 11/15/36</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">NR/NR</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,266,348</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Met. Transportation Auth. Rev.,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">10,600</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.00%, 11/15/30, Ser. A (FSA)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">11,022,304</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">10,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.25%, 11/15/32, Ser. B</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">A2/A</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">10,613,400</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">7,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">New York City Municipal Water Finance Auth., Water &amp; Sewer System Rev.,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.00%, 6/15/39, Ser. A</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>          <center>
              <FONT size=1 face="sans-serif">Aa2</FONT><font size=1 face="sans-serif">/AA+</font>
            </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">7,250,250</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">6,700</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">State Dormitory Auth. Rev., Sloan-Kettering Center Memorial, 5.00%, 7/1/34, Ser. 1</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>          <center>
              <FONT size=1 face="sans-serif">Aa2</FONT><font size=1 face="sans-serif">/AA</font>
            </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">6,930,212</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">State Environmental Facs. Corp. Rev., 5.00%, 6/15/28</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">2,100,580</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">39,183,094</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Ohio&#151;0.6%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">7,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Lorain Cnty. Hospital Rev., Catholic Healthcare, 5.375%, 10/1/30</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aa3</FONT><font size=1 face="sans-serif">/AA-</font>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">7,848,975</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Oklahoma&#151;0.5%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">6,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Tulsa Cnty. Industrial Auth. Rev., Legacy Apartments, 4.90%, 11/20/46 (FHA-GNMA)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Aaa/NR</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">6,658,600</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Pennsylvania&#151;2.5%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Allegheny Cnty. Hospital Dev. Auth. Rev., Ser. B,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">550</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">9.25%, 11/15/15</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Ba3</FONT>
            <font size=1 face="sans-serif">/B+</font>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">655,149</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">9.25%, 11/15/22</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Ba3</FONT><font size=1 face="sans-serif">/B+</font>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,190,750</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">5,700</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">9.25%, 11/15/30</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Ba3</FONT><font size=1 face="sans-serif">/B+</font>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">6,792,120</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Cumberland Cnty. Auth. Retirement Community Rev.,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Wesley Affiliated Services, Ser. A,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">1,255</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">7.25%, 1/1/35</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">NR/NR</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,354,597</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">3,245</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">7.25%, 1/1/35, (Pre-refunded @ &#36;101, 1/1/13) (a)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">NR/NR</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">3,889,976</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Montgomery Cnty. Higher Education &amp; Health Auth. Hospital Rev.,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Abington Memorial Hospital, Ser. A,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.125%, 6/1/27</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">NR/A</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">5,182,450</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">3,750</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.125%, 6/1/32</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">NR/A</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">3,873,637</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">3,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Philadelphia, GO, 5.25%, 9/15/25 (FSA)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">3,144,930</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Philadelphia Auth. Industrial Dev. Lease Rev., 5.25%, 10/1/30, Ser. B (FSA)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">5,240,350</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Pittsburgh &amp; Allegheny Cnty. Public Auditorium Auth. Rev., 5.00%, 2/1/29 (AMBAC)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">511,530</FONT>
        </TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left colspan=4>
<B><FONT size=2 face="sans-serif">PIMCO Municipal Income Fund II Schedule of Investments</FONT></B>
        </TD>
        <TD width="1%">&nbsp;
  </TD>
        <TD width="12%" align=left>

          <center>
        </center></TD>
        <TD width="1%" align=left>&nbsp;

        </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left colspan=4>
<FONT size=1 face="sans-serif">August 31, 2006 (unaudited)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="6%" height="20" align=right>
          <center>
            <FONT size=1 face="sans-serif">Principal</FONT>
          </center></TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
  </TD>
        <TD width="67%" align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Amount</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Credit Rating</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">(000</FONT><FONT size=1 face="sans-serif">)</FONT>
          </center></TD>
        <TD align=left>&nbsp;
</TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">(Moody's/S&amp;P)</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Value*</FONT>
          </center></TD>
</TR>
<TR>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Pennsylvania&#151;(continued)</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">&#36;2,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Radnor Township School Dist., GO, 5.00%, 2/15/35, Ser. B (FSA)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/NR</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">&#36;2,626,825</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">34,462,314</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Puerto Rico&#151;0.3%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">4,200</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Electric Power Auth., Power Rev., 5.125%, 7/1/29, Ser. NN</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">A3/BBB+</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">4,374,930</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR>
        <TD colspan=8>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Rhode Island&#151;4.8%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">62,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Tobacco Settlement Financing Corp. Rev., 6.25%, 6/1/42, Ser. A</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Baa3/BBB</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">65,344,280</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR>
        <TD colspan=8>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">South Carolina&#151;5.8%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">27,745</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Greenville Cnty. School Dist. Rev., Building Equity Sooner Tomorrow,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.50%, 12/1/28, (Pre-refunded @ &#36;101, 12/1/12) (a)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aa3</FONT><font size=1 face="sans-serif">/AA-</font>
          </center></TD>
        <TD align=left>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">30,689,854</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">18,120</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Jobs Economic Dev. Auth. Rev., Bon Secours Health System, 5.625%, 11/15/30</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">A3/A-</FONT>
          </center></TD>
        <TD align=left>&nbsp;
</TD>
        <TD align=right>
<FONT size=1 face="sans-serif">19,139,431</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Lexington Cnty., Health Services Dist. Hospital Rev.,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">15,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.50%, 11/1/32</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">A2</FONT>
            <font size=1 face="sans-serif">/A</font>
          </center></TD>
        <TD align=left>&nbsp;
</TD>
        <TD align=right>
<FONT size=1 face="sans-serif">15,973,800</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">3,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.50%, 5/1/37</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">A2</FONT>
            <font size=1 face="sans-serif">/A</font>
          </center></TD>
        <TD align=left>&nbsp;
</TD>
        <TD align=right>
<FONT size=1 face="sans-serif">3,726,590</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.75%, 11/1/28</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">A2</FONT><font size=1 face="sans-serif">/A</font>
          </center></TD>
        <TD align=left>&nbsp;
</TD>
        <TD align=right>
<FONT size=1 face="sans-serif">5,429,200</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">3,250</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Tobacco Settlement Rev. Management Auth. Rev., 6.375%, 5/15/28, Ser. B</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Baa3/BBB</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">3,488,485</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">1,180</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Transportation Infrastructure Rev., 5.00%, 10/1/29, Ser. A,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">(Pre-refunded @ &#36;100, 10/1/11) (AMBAC)(a)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/NR</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,254,777</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">79,702,137</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Tennessee&#151;0.3%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">3,750</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Knox Cnty. Health Educational &amp; Housing Facs., Board Hospital Facs. Rev.,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.25%, 10/1/30</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aa3/AA-</FONT>
          </center></TD>
        <TD align=left>&nbsp;
</TD>
        <TD align=right>
<FONT size=1 face="sans-serif">3,918,037</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Texas&#151;11.0%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Arlington Independent School Dist. GO (PSF-GTD),</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.00%, 2/15/24</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">10,230</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">990</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.00%, 2/15/24, (Pre-refunded @ &#36;100, 2/15/09) (a)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,022,799</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">4,480</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Aubrey Independent School Dist., GO, 5.50%, 2/15/33 (PSF-GTD)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/NR</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">4,895,027</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">6,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Brazos Cnty. Health Facs. Dev. Corp., Franciscan Services Corp. Rev.,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.375%, 1/1/32</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">NR/A-</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">6,813,755</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">2,700</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Comal Cnty. Health Facs., McKenna Memorial Hospital Project Rev., 6.25%, 2/1/32</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Baa3/BBB-</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">2,924,613</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Dallas Area Rapid Transit Rev., 5.00%, 12/1/31 (AMBAC)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">5,150,400</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">20,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Frisco Independent School Dist., GO, zero coupon, 8/15/34 (PSF-GTD)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/NR</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">5,256,400</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Harris Cnty. ,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">19,750</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">GO, 5.125%, 8/15/31, (Pre-refunded @ &#36;100, 8/15/12) (a)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aa1</FONT><font size=1 face="sans-serif">/AA+</font>
          </center></TD>
        <TD align=left>&nbsp;
</TD>
        <TD align=right>
<FONT size=1 face="sans-serif">21,162,323</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">5,250</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Health Facs. Dev. Corp. Rev., St. Luke's Episcopal Hospital,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <div align="left"><FONT size=1 face="sans-serif">&nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif"></FONT>&nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif"></FONT>5.375%, 2/15/26, Ser. A, (Pre-refunded @ &#36;100, 8/15/11) (a)</FONT>
          </div></TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">NR/AAA</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">5,651,048</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">25,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Senior Lien Toll Road Rev., 5.00%, 8/15/30 (FSA)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">25,895,000</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">7,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Keller Independent School Dist., GO, 4.875%, 8/15/31 (PSF-GTD)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">7,601,250</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">3,170</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Little Elm Independent School Dist., GO, 5.30%, 8/15/29, Ser. A (PSF-GTD)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">NR/AAA</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">3,399,698</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">6,250</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">North Dallas Thruway Auth. Rev., 4.75%, 1/1/29 (FGIC)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">6,300,125</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Quinlan Independent School Dist., GO, 5.10%, 2/15/32 (PSF-GTD)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/NR</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">5,179,850</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Sabine River Auth. Rev., 5.20%, 5/1/28</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Baa2/BBB-</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">2,075,080</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">17,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">State, GO, 4.75%, 4/1/36</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aa1/AA</FONT>
          </center></TD>
        <TD align=left>&nbsp;
</TD>
        <TD align=right>
<FONT size=1 face="sans-serif">17,782,100</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">State Turnpike Auth. Central Turnpike System Rev., Ser. A (AMBAC),</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">10,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">zero coupon, 8/15/19</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">5,707,900</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">8,880</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.00%, 8/15/42</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">9,127,663</FONT>
        </TD>
</TR>
</TABLE>
<BR>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left colspan=4>
<B><FONT size=2 face="sans-serif">PIMCO Municipal Income Fund II Schedule of Investments</FONT></B>
        </TD>
        <TD width="1%">&nbsp;
  </TD>
        <TD width="12%" align=left>

          <center>
        </center></TD>
        <TD width="1%">&nbsp;
  </TD>
        <TD width="12%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left colspan=4>
<FONT size=1 face="sans-serif">August 31, 2006 (unaudited)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="7%" align=right>
          <center>
            <FONT size=1 face="sans-serif">Principal</FONT>
          </center></TD>
        <TD width="1%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
  </TD>
        <TD width="65%" align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Amount</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Credit Rating</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">(000</FONT><font size=1 face="sans-serif">)</font>
          </center></TD>
        <TD align=left>&nbsp;
</TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">(Moody's/S&amp;P)</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Value*</FONT>
          </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Texas&#151;(continued)</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">State Water Financial Assistance, GO,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">&#36;3,250</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.00%, 8/1/36</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

 <center>
   <FONT size=1 face="sans-serif">Aa1/AA</FONT>        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">&#36;3,367,358</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">1,650</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.25%, 8/1/35</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

 <center>
   <FONT size=1 face="sans-serif">Aa1</FONT><font size=1 face="sans-serif">/AA</font>        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,737,928</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">8,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Wichita Falls Water &amp; Sewer Rev., 5.00%, 8/1/27 (AMBAC)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">8,269,840</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">149,330,387</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Virginia&#151;0.5%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Fredericksburg Industrial Dev. Medicorp Health System Rev., Ser. B,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">2,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.125%, 6/15/33</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>          <center>
              <FONT size=1 face="sans-serif">A3</FONT><font size=1 face="sans-serif">/NR</font>
      </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">2,561,900</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">4,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.25%, 6/15/27</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>          <center>
              <FONT size=1 face="sans-serif">A3/NR</FONT>
      </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">4,128,200</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">6,690,100</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Washington&#151;0.8%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Douglas Cnty. Public Utility Dist. No. 1, Wells Hydroelectric,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.00%, 9/1/30, Ser. B (FGIC)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">AAA/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">5,239,550</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Tacoma Sewer Rev., 5.00%, 12/1/31, Ser. A (FGIC)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">5,152,750</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">10,392,300</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Wisconsin&#151;0.8%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Badger Tobacco Asset Securitization Corp.,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">1,125</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">6.00%, 6/1/17</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Baa3/BBB</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,190,745</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">8,240</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">6.125%, 6/1/27</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Baa3/BBB</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">8,806,583</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">State Health &amp; Educational Facs. Auth. Rev., Froedert &amp; Community Health Oblig.,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">90</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.375%, 10/1/30</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">NR/AA-</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">94,480</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">910</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">5.375%, 10/1/30, (Pre-refunded @ &#36;101, 10/1/11) (a)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">NR/AA-</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">990,926</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">11,082,734</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Total Municipal Bonds &amp; Notes (cost&#151;&#36;1,136,304,256)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,246,794,899</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left colspan=4>
<B><FONT size=2 face="sans-serif">VARIABLE RATE NOTES </FONT></B><FONT size=2 face="sans-serif">(c)(d)</FONT><B><FONT size=2 face="sans-serif">&#151;8.2%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Alabama&#151;0.9%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">3,600</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Birmingham Waterworks &amp; Sewer Board Rev., 11.57%, 1/1/33, Ser. 947 (MBIA)(b)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/NR</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">4,658,940</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">4,450</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Jefferson Cnty. Sewer Rev., 11.51%, 2/1/36, Ser. 352 (FGIC)(b)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/NR</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">5,494,726</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">1,400</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Montgomery Special Care Facs., Financing Auth. Rev.,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">10.32%, 11/15/29, Ser. 435 (MBIA)(b)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/NR</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,573,670</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">11,727,336</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Arizona&#151;0.8%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">8,200</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Salt River Project Agricultural Improvement &amp; Power Dist.,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">10.35%, 1/1/37, Ser. 1430 (b)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">NR/AA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">10,285,670</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Colorado&#151;0.2%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">2,250</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Denver City &amp; Cnty. Airport Rev., 10.32%, 11/15/25, Ser. 425 (FSA)(b)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/NR</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">2,598,300</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Florida&#151;0.5%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">1,782</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Orange Cnty. School Board, CP, 10.32%, 8/1/24, Ser. 328 (MBIA)(b)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/NR</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">2,210,482</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">3,241</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">State Governmental Utilities Auth. Rev., 10.32%, 10/1/29, Ser. 327 (AMBAC)(b)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Aaa/NR</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">3,804,934</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Sumter Landing Community Dev. Dist. Rev., 9.10%, 10/1/35, Ser. 1208 (MBIA)(b)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
          <center>
            <FONT size=1 face="sans-serif">Aaa/AAA</FONT>
          </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,073,500</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">7,088,916</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <center>
        </center></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left colspan=4>
<B><FONT size=2 face="sans-serif">PIMCO Municipal Income Fund II Schedule of Investments</FONT></B>
        </TD>
        <TD width="1%">&nbsp;
  </TD>
        <TD width="13%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
  </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left colspan=4>
<FONT size=1 face="sans-serif">August 31, 2006 (unaudited)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
<FONT size=2 face="serif">&nbsp; </FONT><FONT size=2 face="serif">&nbsp; </FONT> </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
          <HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="7%" align=right>
          <center>
            <FONT size=1 face="sans-serif">Principal</FONT>
    </center></TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
  </TD>
        <TD width="65%" align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Amount</FONT>
    </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">Credit Rating</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">(000)</FONT>
    </center></TD>
        <TD align=left>&nbsp;
</TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">(Moody's/S&amp;P)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Value*</FONT>
          </center></TD>
</TR>
<TR>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Illinois&#151;0.7%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Chicago, GO (b),</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">&#36;1,780</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">10.95%, 1/1/28, Ser. 332 (MBIA)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">Aaa/NR</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">&#36;2,101,557</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">2,200</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">12.82%, 1/1/40, Ser. 426 (FGIC)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">Aaa/NR</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">2,881,010</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">1,288</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Cook Cnty., GO, 10.32%, 11/15/28, Ser. 403 (FGIC)(b)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">Aaa/NR</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,543,410</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">State, GO, 11.57%, 4/1/27, Ser. 783 (FSA)(b)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">Aaa/NR</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">2,618,300</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">9,144,277</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Louisiana&#151;0.3%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">4,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Tobacco Settlement Financing Corp. Rev., 7.159%, 5/15/39 (b)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">NR/NR</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">4,441,520</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Massachusetts&#151;1.9%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">1,400</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Boston Water &amp; Sewer Community Rev., 10.36%, 11/1/28, Ser. 434 (FGIC)(b)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">Aaa/NR</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,584,170</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">2,900</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Massachusetts Bay Transportation Auth., Special Assessment, 9.43%, 7/1/34</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">Aa1/NR</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">3,160,565</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">2,200</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">State, GO, 11.62%, 11/1/30, Ser. 785 (FGIC-TCRS)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">Aaa/NR</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">3,117,400</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">State Turnpike Auth. Rev. (b),</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">7,366</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">10.36%, 1/1/37, Ser. 334 (MBIA)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">Aaa/NR</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">7,918,818</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">3,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">10.36%, 1/1/37, Ser. 489 (MBIA)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">NR/AAA</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">3,225,150</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">5,668</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">10.36%, 1/1/39, Ser. 335 (AMBAC)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">Aaa/NR</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">6,297,443</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">25,303,546</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Nevada&#151;0.2%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">2,200</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">State, GO, 10.32%, 5/15/28, Ser. 344 (FGIC)(b)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">Aaa/NR</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">2,368,058</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR>
        <TD colspan=8>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">New York&#151;0.3%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Liberty Dev. Corp. Rev., 11.68%, 10/1/35, Ser. 1207 (b)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">Aa3/NR</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">3,315,000</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">950</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">New York City Municipal Water Finance Auth., Water &amp; Sewer System Rev.,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">10.43%, 6/15/37, Ser. 1226 (b)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">Aa2/NR</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,144,750</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">4,459,750</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Ohio&#151;0.1%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">1,580</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Hamilton Cnty. Sales Tax Rev., 10.32%, 12/1/27, Ser. 356 (MBIA)(b)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">Aaa/NR</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,772,049</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR>
        <TD colspan=8>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Pennsylvania&#151;0.6%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">3,050</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Philadelphia Auth. Industrial Dev. Rev., Doubletree,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">6.50%, 10/1/27, (Pre-refunded @ &#36;102, 2/1/07) (a)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">NR/NR</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">3,144,581</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Philadelphia School Dist., GO (MBIA)(b),</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">1,670</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">9.07%, 4/1/27, Ser. 345</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">Aaa/NR</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,768,363</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">2,677</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">9.07%, 4/1/27, Ser. 496</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">NR/AAA</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">2,834,675</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">7,747,619</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Texas&#151;0.9%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">2,460</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Denton Utility System Rev., 10.95%, 12/1/29, Ser. 428 (MBIA)(b)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">Aaa/NR</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">2,736,504</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">1,100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Houston Airport System Rev., 10.32%, 7/1/25, Ser. 404 (FGIC)(b)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">Aaa/NR</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,192,400</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Houston Water &amp; Sewer System Rev. (b),</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">2,200</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">10.32%, 12/1/28, Ser. 427 (FSA)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">Aaa/NR</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">2,676,080</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">3,070</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">11.57%, 12/1/30, Ser. 495 (FGIC)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">NR/AAA</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">4,031,217</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">2,005</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">State, GO, 9.07%, 4/1/35, Ser. 1147 (b)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">NR/NR</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">2,145,651</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">12,781,852</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Utah&#151;0.7%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">8,830</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Utah Transit Auth. Rev., 9.10%, 6/15/35, Ser. 1197 (FSA)(b)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">Aaa/AAA</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">9,622,934</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left colspan=4>
<B><FONT size=2 face="sans-serif">PIMCO Municipal Income Fund II Schedule of Investments</FONT></B>
        </TD>
        <TD width="1%">&nbsp;
  </TD>
        <TD width="12%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
  </TD>
        <TD width="13%" align=left>&nbsp;

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left colspan=4>
<FONT size=1 face="sans-serif">August 31, 2006 (unaudited)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=4>
          <HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="8%" align=right>
          <center>
            <FONT size=1 face="sans-serif">Principal</FONT>
          </center></TD>
        <TD width="1%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
  </TD>
        <TD width="61%" align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Amount</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">Credit Rating</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">(000)</FONT>
          </center></TD>
        <TD align=left>&nbsp;
</TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">(Moody's/S&amp;P)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">Value*</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Washington&#151;0.1%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">&#36;1,820</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Central Puget Sound Regional Transit Auth. Sales Tax &amp; Motor Rev.,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">9.07%, 2/1/28, Ser. 360 (FGIC)(b)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=center>
<FONT size=1 face="sans-serif">Aaa/NR</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">&#36;1,960,413</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Total Variable Rate Notes (cost&#151;&#36;94,678,189)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">111,302,240</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left colspan=4>
<B><FONT size=2 face="sans-serif">U.S. TREASURY BILLS </FONT></B><FONT size=2 face="sans-serif">(e)</FONT><B><FONT size=2 face="sans-serif">&#151;0.4%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">6,100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">4.72%-4.85%, 9/14/06 (cost&#151;&#36;6,089,402)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">6,089,402</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Total Investments before options written </FONT></B><FONT size=1 face="sans-serif">(cost&#151;&#36;1,237,071,847)&#151;</FONT><B><FONT size=1 face="sans-serif">100.1%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,364,186,541</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left colspan=4>
<B><FONT size=2 face="sans-serif">OPTIONS WRITTEN </FONT></B><FONT size=2 face="sans-serif">(f)</FONT><B><FONT size=2 face="sans-serif">&#151;(0.1)%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<U><FONT size=1 face="sans-serif">Contracts</FONT></U>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Call Options&#151;(0.1)%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade,</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=1 face="sans-serif">1,497</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">strike price &#36;108, expires 11/21/06 (premiums received&#151;-&#36;275,822)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">(795,281</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">)</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Total Investments net of options written </FONT></B><FONT size=1 face="sans-serif">(cost&#151;&#36;1,236,796,025)&#151;</FONT><B><FONT size=1 face="sans-serif">100.0%</FONT></B>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">&#36;1,363,391,260</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P align="left">
<P>
<B><FONT size=1 face="sans-serif">Notes to Schedule of Investments:</FONT></B></P>


<TABLE border=0 cellspacing=0 cellpadding=0>
<TR><TD width="3%" valign=top nowrap>
<FONT size=1 face="sans-serif">*</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD colspan=2>
<FONT size=1 face="sans-serif">Portfolio securities and other financial instruments for which market quotations are readily available are stated at market value. Portfolio securities and other financial instruments for which market quotations are
not readily available or if a development/event occurs that may significantly impact the value of a security are fair-valued, in good faith, pursuant to guidelines established by the Board of Trustees. The Fund&#146;s investments are valued daily
using prices supplied by an independent pricing service or dealer quotations, by using the last sale price on the exchange that is the primary market for such securities, or the last quoted mean price for those securities for which the
over-the-counter market is the primary market or for listed securities in which there were no sales. 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. Exchange traded options and futures are valued at the settlement price determined by the relevant exchange. Short-term securities maturing in 60 days or less are valued at amortized cost, if
their original term to maturity was 60 days or less, or by amortizing their value on the 61st day prior to maturity, if the original term to maturity exceeded 60 days. The prices used by the Fund to value securities may differ from the value that
would be realized if the securities were sold. The Fund&#146;s net asset value is determined daily as of the close of regular trading (normally, 4:00 p.m. Eastern time) on the New York Stock Exchange ("NYSE") on each day the NYSE is open for
business.</FONT></TD>
</TR>
<TR><TD></TD></TR>
<TR>
  <TD></TD>
  <TD align="left" valign=top>&nbsp;</TD>
  <TD valign="top">&nbsp;</TD>
</TR>
<TR><TD></TD>
<TD width="4%" align="left" valign=top>
<FONT size=1 face="sans-serif">(a)</FONT></TD><TD width=93% valign="top">
<FONT size=1 face="sans-serif">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</FONT></TD>
</TR>
<TR>
  <TD></TD>
  <TD align="left" valign=top></TD>
  <TD valign="top"><font size=1 face="sans-serif"> 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</font></TD>
</TR>
<TR>
  <TD></TD>
  <TD align="left" valign=top></TD>
  <TD valign="top"><font size=1 face="sans-serif"> rate).</font></TD>
</TR>
<TR>
<TD></TD> <TD align="left" valign=top>
<FONT size=1 face="sans-serif">(b)</FONT></TD><TD width=93% valign="top">
<FONT size=1 face="sans-serif">144A Security - Security exempt from registration, under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from </FONT></TD>
</TR>
<TR>
  <TD></TD>
  <TD align="left"></TD>
  <TD><font size=1 face="sans-serif">registration, typically only to qualified
institutional buyers. Unless otherwise indicated, these securities are not considered to be illiquid.</font></TD>
</TR>
<TR>
<TD></TD> <TD align="left">
<FONT size=1 face="sans-serif">(c)</FONT></TD>
        <TD width=93%>
<FONT size=1 face="sans-serif">Residual Interest Municipal Bonds ("RIBS")/Residual Interest Tax Exempt Bonds ("RITES") - The interest rate shown bears an inverse relationship to the interest rate on</FONT></TD>
</TR>
<TR>
<TD></TD><TD align="left" valign=top>
<FONT size=1 face="sans-serif">(d)</FONT></TD><TD width=93% valign="top">
<FONT size=1 face="sans-serif">Variable Rate Notes - Instruments whose interest rates change on specified date (such as a coupon date or interest payment date) and/or whose interest </FONT></TD>
</TR>
<TR>
  <TD></TD>
  <TD align="left"></TD>
  <TD><font size=1 face="sans-serif"> another security or the value of an index. rates vary with changes in a designated base rate (such as the prime interest rate). The interest rate disclosed</font></TD>
</TR>
<TR>
  <TD></TD>
  <TD align="left"></TD>
  <TD><font size=1 face="sans-serif"> reflects the rate in effect on August 31, 2006.</font></TD>
</TR>
<TR>
<TD></TD> <TD align="left">
<FONT size=1 face="sans-serif">(e)</FONT></TD><TD width=93%>
<FONT size=1 face="sans-serif">All or partial amount segregated as collateral for futures contracts.</FONT></TD>
</TR>
<TR>
<TD></TD><TD align="left" valign=top>
<FONT size=1 face="sans-serif">(f)</FONT></TD><TD width=93% valign="top">
<FONT size=1 face="sans-serif">Non-income producing.</FONT></TD>
</TR>
</TABLE>
<P align="left">
<B><U><FONT size=1 face="sans-serif">Glossary </FONT></U></B></P>
<P align="left">
<FONT size=1 face="sans-serif">AMBAC - insured by American Municipal Bond Assurance Corp.<br>
CP - Certificates of Participation <br>
FGIC - insured by Financial Guaranty Insurance Co.<br>
FHA - insured by Federal Housing Administration FSA - insured by Financial Security Assurance, Inc.<br>
GNMA - insured by Government National Mortgage Association <br>
GO - General Obligation Bond <br>
MBIA - insured by Municipal Bond Investors Assurance <br>
NR - Not Rated <br>
PSF-GTD - Permanent School Fund Guaranteed <br>
TCRS - Temporary
Custodian Receipts <br>
XLCA - insured by XL Capital Assurance</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left colspan=3>
<B><FONT size=2 face="sans-serif">Other Investments:</FONT></B>
        </TD>
        <TD width="1%">&nbsp;
  </TD>
        <TD width="8%" align=left>&nbsp;

        </TD>
        <TD width="3%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
  </TD>
        <TD width="10%" align=left>&nbsp;

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="3%" align=left>&nbsp;

        </TD>
        <TD width="11%" align=left>&nbsp;

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=12>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left colspan=3>
<FONT size=1 face="sans-serif">(1) Futures contracts outstanding at August 31, 2006:</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="7%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
  </TD>
        <TD width="51%" align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
          <center>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">Notional  </FONT>
          </center></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=right>
          <center>
          <font size=1 face="sans-serif">Unrealized</font>                    </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right><center>
    <font size=1 face="sans-serif">Amount</font>
  </center></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left><center>
    <font size=1 face="sans-serif">Expiration</font>  </center></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><center>
    <font size=1 face="sans-serif">Appreciation</font>
  </center></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>          <div align="left"><FONT size=1 face="sans-serif">Type</FONT>
        </div></TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">(000)</FONT>
          </center></TD>
        <TD align=left>
          <center>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

 <center>
   <FONT size=1 face="sans-serif">Date</FONT>
        </center></TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=left>

          <center>
        </center></TD>
        <TD align=right>
          <center>
            <FONT size=1 face="sans-serif">(Depreciation)</FONT>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
          <center>
            <HR noshade size=3>
          </center></TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="sans-serif">Long:</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Financial Future Euro &#151; 90 day, June 2007</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">&#36;575</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">6/18/07</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">&#36;(10,925</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Financial Future Euro &#151; 90 day, September 2007</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">575</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">9/17/07</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">(4,888</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Financial Future Euro &#151; 90 day, December 2007</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">575</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">12/17/07</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">(1,438</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">Financial Future Euro &#151; 90 day, March 2008</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">575</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">3/17/08</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">0</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">U.S. Treasury Notes 5 yr. Futures December 2006</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">46,890</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">12/31/06</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,150,391</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=12>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="sans-serif">Short:</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">U.S. Treasury Bond Futures September 2006</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">(51,590</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">9/20/06</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">(16,496,048</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">U.S. Treasury Notes 10 yr. Futures September 2006</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">(3,650</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">)</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">9/20/06</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">(153,984</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">)</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">&#36;(15,516,892</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">)</FONT>
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=12>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left colspan=3>
<FONT size=1 face="sans-serif">(2) Transactions in options written for the three months ended August 31, 2006:</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">Contracts</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">Premiums</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD><HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left colspan=3>
<FONT size=1 face="sans-serif">Options outstanding, May 31, 2006</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">0</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif"></FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">&#36;0</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left colspan=3>
<FONT size=1 face="sans-serif">Options written</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">5,221</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">741,782</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left colspan=3>
<FONT size=1 face="sans-serif">Options expired</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">(2,227</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">)</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">(260,309</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left colspan=3>
<FONT size=1 face="sans-serif">Options terminated in closing transactions</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">(1,497</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">)</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">(205,651</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="sans-serif">)</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=3>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left colspan=3>
<FONT size=1 face="sans-serif">Options outstanding, August 31, 2006</FONT>
        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
  </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">1,497</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif"></FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="sans-serif">&#36;275,822</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=3>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD>
          <HR noshade size=3>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
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<P align="left">
<P>

<B><FONT size=2 face="serif">Item 2. Controls and Procedures</FONT></B></P>

<P align="left">
<FONT face="serif">(a) The registrant's President and Chief Executive Officer and Principal Financial Officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of
1940, as amended are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document. </FONT></P>
<P align="left">
<FONT face="serif">(b) There were no significant changes in the registrant's internal controls or in factors that could affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses. </FONT></P>
<P align="left">
<P>
<B><FONT size=2 face="serif">Item 3. Exhibits</FONT></B></P>

<P align="left">
<FONT size=2 face="serif">(a) Exhibit 99.302 Cert. &#150; Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</FONT></P>

<BR>
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<p align="center">
<B><FONT size=2 face="serif">SIGNATURES</FONT></B></p>

<P align="left">
<FONT size=2 face="serif">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. </FONT></P>

<P>
<FONT size=2 face="serif">Registrant: PIMCO Municipal Income Fund II</FONT><BR>
<BR>
<FONT size=2 face="serif">By /s/ Brian S. Shlissel </FONT><BR>
<FONT size=2 face="serif">President &amp; Chief Executive Officer </FONT></P>
<P>
<FONT size=2 face="serif">Date: October 27, 2006</FONT></P>
<P align="left">
<FONT size=2 face="serif">By /s/ Lawrence G. Altadonna <br>
Treasurer, Principal Financial &amp; Accounting Officer</FONT></P>

<P><FONT size=2 face="serif">Date: October 27, 2006</FONT></P>

<P align="left">
<FONT size=2 face="serif">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 dated indicated. </FONT></P>

<P>
<FONT size=2 face="serif">By /s/ Brian S. Shlissel </FONT><BR>
<FONT size=2 face="serif">President &amp; Chief Executive Officer</FONT></P>

<P>
<FONT size=2 face="serif">Date: October 27, 2006 </FONT></P>

<P align="left">
<FONT size=2 face="serif">By /s/ Lawrence G. Altadonna <br>
Treasurer, Principal Financial &amp; Accounting Officer</FONT></P>

<P>
<FONT size=2 face="serif">Date: October 27, 2006</FONT></P>
<p></P>

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<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>2
<FILENAME>c44841_ex99-302cert.htm
<TEXT>

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   <TITLE>c44841_99-302cert -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing</TITLE>
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<P align="right">
<P align="right"><B><FONT size=2 face="serif">Exhibit 99.302 Cert.</FONT></B></P>

<P align="center"><B><FONT size=2 face="serif">CERTIFICATIONS</FONT></B></P>
<P>
<FONT size=2 face="serif">I, Brian S. Shlissel, certify that:</FONT></P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD width="2%" valign=top nowrap>&nbsp;</TD>
	<TD width="4%" valign=top nowrap>
<FONT size=2 face="serif">1.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD colspan=2>
<FONT size=2 face="serif">I have reviewed this report Form N-Q of PIMCO Municipal Income Fund II;</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">2.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD colspan=2>
<FONT size=2 face="serif">Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by the report;</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">3.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD colspan=2>
<FONT size=2 face="serif">Based on my knowledge, the schedules on investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is
filed;</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">4.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD colspan=2>
<FONT size=2 face="serif">The registrant&#146;s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal
control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD>&nbsp;</TD>
<TD>&nbsp;</TD>	<TD width="4%" valign=top nowrap>
  <center>
    <FONT size=2 face="serif">a.</FONT>&nbsp;&nbsp;&nbsp;  </center></TD>
	<TD width=90%>
<FONT size=2 face="serif">Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD>&nbsp;</TD>
<TD>&nbsp;</TD>	<TD nowrap valign=top>
  <center>
    <FONT size=2 face="serif">b.</FONT>&nbsp;&nbsp;&nbsp;  </center></TD>
	<TD width=90%>
<FONT size=2 face="serif">Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles:</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD>&nbsp;</TD>
<TD>&nbsp;</TD>	<TD nowrap valign=top>
  <center>
    <FONT size=2 face="serif">c.</FONT>&nbsp;&nbsp;&nbsp;  </center></TD>
	<TD width=90%>
<FONT size=2 face="serif">Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90
days prior to the filing date of this report, based on such evaluation; and</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD>&nbsp;</TD>
<TD>&nbsp;</TD>	<TD nowrap valign=top>
  <center>
    <FONT size=2 face="serif">d.</FONT>&nbsp;&nbsp;&nbsp;  </center></TD>
	<TD width=90%>
<FONT size=2 face="serif">Disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the registrant&#146;s most recent fiscal quarter that has materially affected, or is reasonably
likely to materially affect, the registrant&#146;s internal control over financial reporting; and</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="serif">5.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD colspan=2>
<FONT size=2 face="serif">The registrant&#146;s other certifying officer(s) and I have disclosed to the registrant&#146;s auditors and the audit committee of the registrant&#146;s board of directors (or persons performing the equivalent
functions):</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD>&nbsp;</TD>
<TD>&nbsp;</TD>	<TD nowrap valign=top>
  <center>
    <FONT size=2 face="serif">a.</FONT>&nbsp;&nbsp;&nbsp;  </center></TD>
	<TD width=90%>
<FONT size=2 face="serif">All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant&#146;s ability to record, process,
summarize, and report financial information; and</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD>&nbsp;</TD>
<TD>&nbsp;</TD>	<TD nowrap valign=top>
  <center>
    <FONT size=2 face="serif">b.</FONT>&nbsp;&nbsp;&nbsp;  </center></TD>
	<TD width=90%>
<FONT size=2 face="serif">Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s control over financial reporting.</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR></TABLE>
<P align="left">
<FONT size=2 face="serif">Date: October 27, 2006<br>
Signature &amp; Title: /s/ Brian S. Shlissel
<br>
Brian S. Shlissel, President &amp; Chief Executive Officer</FONT></P>

<HR noshade  width="100%" size=4>
<PAGE>


<P align="left">
<P>
<FONT size=2 face="serif">I, Lawrence G. Altadonna, certify that:</FONT></P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD width="2%" valign=top nowrap>&nbsp;</TD>
        <TD width="3%" valign=top nowrap>
<FONT size=2 face="serif">1.</FONT>&nbsp; &nbsp; &nbsp;         </TD>
        <TD colspan=2>
<FONT size=2 face="serif">I have reviewed this report Form N-Q of PIMCO Municipal Income Fund II;</FONT>        </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">2.</FONT>&nbsp; &nbsp; &nbsp;         </TD>
        <TD colspan=2>
<FONT size=2 face="serif">Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by the report;</FONT>      </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">3.</FONT>&nbsp; &nbsp; &nbsp;         </TD>
        <TD colspan=2>
<FONT size=2 face="serif">Based on my knowledge, the schedules on investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is
filed;</FONT>   </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">4.</FONT>&nbsp; &nbsp; &nbsp;         </TD>
        <TD colspan=2>
<FONT size=2 face="serif">The registrant&#146;s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal
control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:</FONT>     </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD>&nbsp;</TD>
<TD>&nbsp;</TD> <TD width="4%" valign=top nowrap>
  <center>
    <FONT size=2 face="serif">a.</FONT>&nbsp;&nbsp;&nbsp;  </center></TD>
        <TD width=91%>
<FONT size=2 face="serif">Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</FONT>   </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD>&nbsp;</TD>
<TD>&nbsp;</TD> <TD nowrap valign=top>
  <center>
    <FONT size=2 face="serif">b.</FONT>&nbsp;&nbsp;&nbsp;  </center></TD>
        <TD width=91%>
<FONT size=2 face="serif">Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles:</FONT> </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD>&nbsp;</TD>
<TD>&nbsp;</TD> <TD nowrap valign=top>
  <center>
    <FONT size=2 face="serif">c.</FONT>&nbsp;&nbsp;&nbsp;  </center></TD>
        <TD width=91%>
<FONT size=2 face="serif">Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90
days prior to the filing date of this report, based on such evaluation; and</FONT>      </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD>&nbsp;</TD>
<TD>&nbsp;</TD> <TD nowrap valign=top>
  <center>
    <FONT size=2 face="serif">d.</FONT>&nbsp;&nbsp;&nbsp;  </center></TD>
        <TD width=91%>
<FONT size=2 face="serif">Disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the registrant&#146;s most recent fiscal quarter that has materially affected, or is reasonably
likely to materially affect, the registrant&#146;s internal control over financial reporting; and</FONT>        </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">5.</FONT>&nbsp; &nbsp; &nbsp;         </TD>
        <TD colspan=2>
<FONT size=2 face="serif">The registrant&#146;s other certifying officer(s) and I have disclosed to the registrant&#146;s auditors and the audit committee of the registrant&#146;s board of directors (or persons performing the equivalent
functions):</FONT>      </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD>&nbsp;</TD>
<TD>&nbsp;</TD> <TD nowrap valign=top>
  <center>
    <FONT size=2 face="serif">a.</FONT>&nbsp;&nbsp;&nbsp;  </center></TD>
        <TD width=91%>
<FONT size=2 face="serif">All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant&#146;s ability to record, process,
summarize, and report financial information; and</FONT> </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD>&nbsp;</TD>
<TD>&nbsp;</TD> <TD nowrap valign=top>
  <center>
    <FONT size=2 face="serif">b.</FONT>&nbsp;&nbsp;&nbsp;  </center></TD>
        <TD width=91%>
<FONT size=2 face="serif">Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s control over financial reporting.</FONT> </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR></TABLE>
<P align="left">
<FONT size=2 face="serif">Date: October 27, 2006<br>
Signature &amp; Title: /s/ Lawrence G. Altadonna<br>
Lawrence G. Altadonna, Treasurer, Principal Financial &amp; Accounting Officer</FONT></P>

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