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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act File Number: 811-10379
Registrant Name: PIMCO California Municipal Income Fund
Address of Principal Executive Offices: 1345 Avenue of the Americas, New York, NY 10105
Name and Address of Agent for Service: Lawrence G. Altadonna 1345 Avenue of the Americas, New York, NY 10105
Registrant’s telephone number, including area code: 212-739-3371
Date of Fiscal Year End: April 30, 2008
Date of Reporting Period: January 31, 2008
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 (§§ 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 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (‘‘OMB’’) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Schedule of Investments
PIMCO California Municipal Income Fund
Schedule of Investments
January 31, 2008 (unaudited)
Principal
Amount
(000)
Credit Rating
(Moody’s/S&P)
Value*
CALIFORNIA MUNICIPAL BONDS & NOTES–89.6%
$
1,000
ABAG Finance Auth. for Nonprofit Corps., CP, 5.375%, 2/15/19
NR/BBB
$
1,010,120
1,000
ABAG Finance Auth. for Nonprofit Corps. Rev.,
5.375%, 11/15/25 (CA Mtg. Ins.)
NR/A+
1,031,240
1,385
Alvord Unified School Dist., GO, 5.375%, 8/1/29, Ser. C (FSA)
Aaa/NR
1,422,991
6,405
Campbell Union High School Dist., GO, 5.50%, 8/1/30 (FSA)
Aaa/NR
6,805,569
2,250
Capistrano Unified School Dist., Special Tax,
5.75%, 9/1/29, (Pre-refunded @ $102, 9/1/09) (b)
NR/NR
2,418,773
5,250
Central JT Powers Health Financing Auth., CP,
5.75%, 2/1/31, (Pre-refunded @ $101, 2/1/11) (b)
Baa2/AAA
5,817,683
Contra Costa Cnty. Public Financing Auth., Tax Allocation,
2,150
5.125%, 8/1/19
NR/BBB
2,189,452
350
5.85%, 8/1/33
NR/NR
358,393
4,650
5.85%, 8/1/33, (Pre-refunded @ $100, 8/1/13) (b)
NR/BBB
5,372,052
2,750
CSUCI Financing Auth. Rev.,
5.00%, 9/1/31, Ser. A, (Pre-refunded @ $100, 9/1/11) (MBIA) (b)
Aaa/AAA
2,992,330
3,635
Cucamonga Cnty. Water Dist., CP, 5.125%, 9/1/35 (FGIC)
Aaa/AAA
3,705,265
East Side Union High School Dist., Santa Clara Cnty.,
GO, Ser. E (XLCA)
1,985
zero coupon, 8/1/21
Aaa/AAA
1,056,556
1,490
zero coupon, 8/1/22
Aaa/AAA
734,704
El Monte, CP (AMBAC),
10,790
4.75%, 6/1/30
Aaa/AAA
10,799,172
14,425
5.25%, 1/1/34
Aaa/AAA
14,842,604
Foothill Eastern Corridor Agcy. Toll Road Rev.,
5,000
zero coupon, 1/15/33
Baa3/BBB−
1,095,500
5,000
zero coupon, 1/15/34
Baa3/BBB−
1,028,200
Fremont Community Dist., Special Tax,
165
6.00%, 9/1/18
NR/NR
167,912
505
6.00%, 9/1/19
NR/NR
511,105
3,500
6.30%, 9/1/31
NR/NR
3,547,670
Golden State Tobacco Securitization Corp. Rev.,
5,000
zero coupon, 6/1/37, Ser. A-2 (converts to 5.30% on 12/1/12)
Baa3/BBB
3,219,350
9,000
5.00%, 6/1/33, Ser. A-1
Baa3/BBB
7,909,200
8,000
5.00%, 6/1/38, Ser. A (FGIC) (g)
A2/AA
7,931,120
17,500
6.25%, 6/1/33, Ser. A-1
Aaa/AAA
19,586,875
10,155
6.75%, 6/1/39, Ser. A-1, (Pre-refunded @ $100, 6/1/13) (b)
Aaa/AAA
11,998,336
540
7.875%, 6/1/42, Ser. A-3, (Pre-refunded @ $100, 6/1/13) (b)
Aaa/AAA
667,672
Health Facs. Finance Auth. Rev.,
130
5.00%, 7/1/18, (Pre-refunded @ $101, 7/1/08) (b)
A2/A
132,918
1,980
5.00%, 7/1/18
A2/A
2,005,542
5,315
5.125%, 7/1/18
NR/BBB+
5,324,142
3,000
5.25%, 10/1/14, Ser. B
NR/AAA
3,089,700
PIMCO California Municipal Income Fund
Schedule of Investments
January 31, 2008 (unaudited) (continued)
Principal
Amount
(000)
Credit Rating
(Moody’s/S&P)
Value*
Health Facs. Finance Auth. Rev., Catholic Healthcare West,
$
125
5.00%, 7/1/28, (Pre-refunded @ $101, 7/1/08) (b)
A2/A
$
127,806
875
5.00%, 7/1/28, (Partially pre-refunded @ $101, 7/1/08) (b)
A2/A
872,742
6,250
Infrastructure & Economic Dev. Bank Rev., Bay Area Toll Bridges,
5.00%, 7/1/36, (Pre-refunded @ $100, 1/1/28) (AMBAC) (b)
Aaa/AAA
6,892,938
La Quinta Redev. Agcy., Tax Allocation (AMBAC),
3,000
5.00%, 9/1/21
Aaa/AAA
3,142,320
10,000
5.10%, 9/1/31
Aaa/AAA
10,238,000
1,000
5.125%, 9/1/32
Aaa/AAA
1,028,310
1,495
Lincoln Public Financing Auth. Rev.,
Twelve Bridges Ltd., 6.125%, 9/2/27
NR/NR
1,482,472
Los Angeles Community Redev. Agcy., Tax Allocation,
520
5.875%, 9/1/26
NR/NR
495,867
325
6.00%, 9/1/31
NR/NR
317,180
5,000
Los Angeles Department of Water & Power Rev.,
4.75%, 7/1/30, Ser. A-2 (FSA) (g)
Aaa/AAA
5,033,950
3,250
Los Angeles Unified School Dist., GO,
5.125%, 7/1/21, Ser. E, (Pre-refunded @ $100, 7/1/12) (MBIA) (b)
Aaa/AAA
3,589,430
5,820
Montclair Redev. Agcy., Tax Allocation, 5.30%, 10/1/30 (MBIA)
Aaa/AAA
6,252,542
195
Murrieta Valley Unified School Dist., Special Tax, VA,
6.30%, 9/1/18, (Pre-refunded @ $102, 9/1/09) (b)
NR/NR
211,275
6,255
Orange Cnty. Sanitation Dist., CP,
5.25%, 2/1/30, (Pre-refunded @ $100, 8/1/13) (FGIC) (b)
Aaa/AAA
7,070,464
1,080
Palm Springs Community Redev. Agcy., Tax Allocation, 5.50%, 8/1/21
NR/A
1,140,491
1,690
Rancho Etiwanda Public Facs., Special Tax,
6.375%, 9/1/24, (Pre-refunded @ $102, 3/1/10) (b)
NR/NR
1,722,989
Rancho Mirage Redev. Agcy., Tax Allocation,
1,190
5.50%, 4/1/24
Baa1/BBB+
1,230,924
1,580
5.625%, 4/1/33
Baa1/BBB+
1,623,687
8,305
Riverside Cnty., CP, 5.125%, 11/1/30 (MBIA)
Aaa/AAA
8,628,231
Riverside, Improvement Board Act 1915, Special Assessment,
500
6.15%, 9/2/19
NR/NR
512,800
1,350
6.375%, 9/2/26
NR/NR
1,384,749
575
Roseville, Woodcreek Community Facs. Dist., Special Tax,
6.375%, 9/1/27 (Pre-refunded @ $102, 9/1/10) (b)
NR/NR
641,717
Sacramento, Special Tax,
2,945
5.70%, 9/1/23
NR/NR
2,949,712
1,000
6.10%, 9/1/21
NR/NR
1,011,810
1,895
6.15%, 9/1/26
NR/NR
1,911,297
2,000
Sacramento Health Fac. Rev., 5.30%, 1/1/24, Ser. A (CA Mtg. Ins.)
NR/A+
2,041,400
545
San Diego Cnty., CP, 5.25%, 10/1/28
A2/NR
549,823
1,000
San Diego Cnty. Water Auth., CP, 5.00%, 5/1/32, Ser. A (MBIA)
Aaa/AAA
1,031,510
San Francisco Bay Area Transit Financing Auth. Rev. (AMBAC),
880
5.125%, 7/1/36
Aaa/AAA
899,941
2,450
5.125%, 7/1/36, (Pre-refunded @ $100, 7/1/11) (b)
Aaa/AAA
2,670,378
PIMCO California Municipal Income Fund
Schedule of Investments
January 31, 2008 (unaudited) (continued)
Principal
Amount
(000)
Credit Rating
(Moody’s/S&P)
Value*
$
720
San Francisco City & Cnty. Redev. Agcy. Rev.,
Special Tax, 6.125%, 8/1/31
NR/NR
$
723,506
5,065
San Joaquin Cnty., CP, 5.00%, 9/1/20 (MBIA)
Aaa/AAA
5,207,630
San Joaquin Hills Transportation Corridor Agcy. Toll Road Rev.,
5,000
5.50%, 1/15/28, Ser. A
Ba2/BB−
4,812,450
5,000
5.70%, 1/15/19, Ser. A
Ba2/BB−
5,147,700
230
San Jose, Improvement Board Act 1915,
Special Assessment, 5.60%, 9/2/17, Ser. Q
NR/NR
234,860
5,000
San Jose Unified School Dist., Santa Clara Cnty., GO,
5.125%, 8/1/25, Ser. D, (Pre-refunded @ $101, 8/1/10) (FSA) (b)
Aaa/AAA
5,399,650
San Juan Unified School Dist., GO (FSA),
9,445
zero coupon, 8/1/22
Aaa/AAA
4,928,590
10,895
zero coupon, 8/1/25
Aaa/AAA
4,769,177
6,110
zero coupon, 8/1/26
Aaa/AAA
2,519,153
600
Santa Ana Financing Auth. Rev., 5.60%, 9/1/19
NR/BBB
617,610
1,815
Santa Clara, CP, 5.00%, 2/1/32 (AMBAC)
Aaa/AAA
1,852,698
1,435
Santa Maria JT Union High School Dist., GO,
5.25%, 8/1/25, Ser. A, (Pre-refunded @ $102, 8/1/15) (FSA) (b)
Aaa/AAA
1,681,547
14,000
State, GO, 5.00%, 6/1/37
A1/A+
14,019,250
5,000
State Public Works Board, 5.00%, 11/1/32, Ser. F
A2/A
4,957,550
Statewide Community Dev. Auth.,
900
Baptist Univ., 5.50%, 11/1/38, Ser. A
NR/NR
860,400
5,420
Gillispie School Rev., 6.625%, 10/1/31
NR/NR
5,421,951
15,250
Henry Mayo Newhall Memorial Hospital,
5.125%, 10/1/30, (CA Mtg. Ins.)
NR/A+
15,485,155
3,000
Jewish Home, 5.50%, 11/15/33 (CA St. Mtg.)
NR/A+
3,121,500
4,000
Sutter Health, 5.50%, 8/15/34, Ser. B
Aa3/AA−
4,114,320
2,445
St. Marks School Rev., 6.75%, 6/1/28 (a)
NR/NR
2,534,291
4,165
Tehiy Day School Rev., 6.625%, 11/1/31
NR/NR
4,079,159
910
Windrush School Rev., 5.50%, 7/1/37
NR/NR
876,603
Statewide Community Dev. Auth., CP,
Catholic West, 6.50%, 7/1/20,
8,000
(Pre-refunded @ $101, 7/1/10)(b)
A2/NR
8,854,301
8,000
Internext Group, 5.375%, 4/1/30
NR/BBB
7,762,640
8,000
Tobacco Securitization Agcy. Rev., Los Angeles Cnty.,
zero coupon, 6/1/28, (converts to 5.45% on 12/1/10)
Baa3/NR
6,344,480
Tobacco Securitization Auth. Rev., Ser. A,
1,500
(Pre-refunded @ $100, 6/1/11) (b) 5.25%, 6/1/31,
Aaa/AAA
1,635,180
9,300
5.375%, 6/1/41
Aaa/AAA
10,174,944
1,650
Town of Apple Valley, CP, VA, 5.375%, 6/1/21 (CA Mtg. Ins.)
NR/A+
1,745,354
Tustin Unified School Dist., Special Tax,
2,345
5.50%, 9/1/22
NR/NR
2,201,275
2,520
5.60%, 9/1/29
NR/NR
2,377,015
2,000
5.625%, 9/1/32
NR/NR
1,889,440
PIMCO California Municipal Income Fund
Schedule of Investments
January 31, 2008 (unaudited) (continued)
Principal
Amount
(000)
Credit Rating
(Moody’s/S&P)
Value*
Univ. Rev.,
$
8,000
4.75%, 5/15/35, Ser. F (FSA) (g)
Aaa/AAA
$
8,059,920
10,000
5.00%, 5/15/36, Ser. A (AMBAC)
Aaa/AAA
10,255,500
3,750
West Kern Cnty. Water Dist., CP,
5.625%, 6/1/31, (Pre-refunded @ $101, 6/1/10) (b)
Baa2/NR
4,065,825
Total California Municipal Bonds & Notes (cost–$344,561,559)
364,209,525
OTHER MUNICIPAL BONDS & NOTES–8.2%
Illinois–1.4%
Educational Facs. Auth. Rev., Univ. of Chicago,
5,260
5.00%, 7/1/33
Aa1/AA
5,392,342
240
5.00%, 7/1/33, (Pre-refunded @ $100, 7/1/13) (b)
Aa1/AA
266,820
5,659,162
Iowa–2.0%
8,700
Tobacco Settlement Auth. Rev., 5.60%, 6/1/34, Ser. B
Baa3/BBB
8,165,124
Louisiana–0.4%
1,750
Tobacco Settlement Financing Corp. Rev., 5.875%, 5/15/39, Ser. 2001-B
Baa3/BBB
1,711,850
New Jersey–1.7%
Tobacco Settlement Financing Corp. Rev.,
1,685
6.00%, 6/1/37, (Pre-refunded @ $100, 6/1/12) (b)
Aaa/AAA
1,911,801
2,210
6.125%, 6/1/42, (Pre-refunded @ $100, 6/1/12) (b)
Aaa/AAA
2,518,671
2,315
6.375%, 6/1/32
Aaa/AAA
2,657,087
7,087,559
New York–0.5%
1,860
State Dormitory Auth. Rev., Hospital Center, 6.25%, 8/15/15 (FHA)
Aa2/AAA
2,023,699
Puerto Rico–1.7%
Electric Power Auth. Power Rev.,
260
5.125%, 7/1/29, Ser. NN, (Pre-refunded @ $100, 7/1/13) (b)
A3/BBB+
290,675
990
5.125%, 7/1/29, Ser. HH, (Pre-refunded @ $101, 7/1/10) (b)
Aaa/AAA
1,106,800
Puerto Rico Sales Tax Financing Corp. Rev.,
19,200
zero coupon, 8/1/47 (AMBAC)
Aaa/AAA
2,227,392
24,000
zero coupon, 8/1/54 (AMBAC)
Aaa/AAA
1,900,560
21,600
zero coupon, 8/1/56
A1/A+
1,533,600
7,059,027
Rhode Island–0.4%
1,500
Tobacco Settlement Financing Corp. Rev., 6.125%, 6/1/32, Ser. A
Baa3/BBB
1,509,720
PIMCO California Municipal Income Fund
Schedule of Investments
January 31, 2008 (unaudited) (continued)
Principal
Amount
(000)
Credit Rating
(Moody’s/S&P)
Value*
South Carolina–0.1%
$
340
Tobacco Settlement Rev. Management Auth. Rev.,
6.375%, 5/15/30, Ser. B
Baa3/BBB
$
345,855
Total Other Municipal Bonds & Notes (cost – $32,554,794)
33,561,996
CALIFORNIA VARIABLE RATE NOTES (d)(e)–1.4%
4,001
Los Angeles Wastewater System Rev.,
12.12%, 6/1/28, Ser. 318 (FGIC) (a) (c)
Aaa/NR
4,401,900
1,000
Sacramento Cnty. Sanitation Dist. Rev.,
10.991%, 8/1/13, Ser. 1034 (MBIA)
NR/AAA
1,157,450
Total California Variable Rate Notes (cost–$4,878,821)
5,559,350
OTHER VARIABLE RATE NOTES (a)(c)(e)–1.1%
Illinois–1.1%
4,000
Chicago Rev., 10.131%, 5/1/14, Ser. 1419 (AMBAC) (cost–$4,366,909)
NR/AAA
4,540,000
Total Investments before options written (cost–$386,362,083)–100.3%
407,870,871
OPTIONS WRITTEN (f)–(0.3)%
Contracts
Call Options–(0.3)%
U.S. Treasury Notes 10 yr. Futures (CBOT),
432
strike price $114, expires 2/22/08
(1,255,500
)
Put Options–(0.0)%
U.S. Treasury Notes 10 yr. Futures (CBOT),
432
strike price $110, expires 2/22/08
(6,750
)
Total Options Written (premiums received–$596,164)
(1,262,250
)
Total Investments net of options written (cost–$385,765,919)–100.0%
$
406,608,621
Notes to Schedule of Investments:
*
Portfolio securities and other financial instruments for which market quotations are readily available are stated at market value. Portfolio securities and other financial instruments for which market quotations are not readily available or if a development/event occurs that may significantly impact the value of a security, are fair-valued, in good faith, pursuant to guidelines established by the Board of Trustees or persons acting at their discretion pursuant to guidelines established by the Board of Trustees. The Fund’s investments are valued daily using prices supplied by an independent pricing service or dealer quotations, or by using the last sale price on the exchange that is the primary market for such securities, or the 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 investments 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’s net asset value is normally determined as of the close of regular trading (normally, 4:00 p.m. Eastern time) on the New York Stock Exchange (‘‘NYSE’’) on each day the NYSE is open for business.
(a)
Private Placement – Restricted as to resale and may not have a readily available market. Securities with an aggregate value of $11,476,191, representing 2.82% of total investments.
(b)
Pre-refunded bonds are collateralized by U.S. Government or other eligible securities which are held in escrow and used to pay principal and interest and retire the bonds at the earliest refunding date (payment date) and/or whose interest rates vary with changes in a designated base rate (such as the prime interest rate).
(c)
144A Security – Security exempt from registration, under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, typically only to qualified institutional buyers. Unless otherwise indicated, these securities are not considered to be illiquid.
(d)
Inverse Floater – The interest rate shown bears an inverse relationship to the interest rate on another security or the value of an index.
(e)
Variable Rate Notes – Instruments whose interest rates change on specified date (such as a coupon date or interest payment date) and/or whose interest rates vary with changes in a designated base rate (such as the prime interest rate). The interest rate disclosed reflects the rate in effect on January 31, 2008.
(f)
Non-income producing.
(g)
Residual Interest Bonds held in Trust – Represent underlying bonds transferred to a separate securitization trust established in a tender option bond transaction in which the Fund acquired the residual interest certificates. These securities serve as collateral in a financing transaction.
Glossary:
AMBAC – insured by American Municipal Bond Assurance Corp.
CA Mtg. Ins. – insured by California Mortgage Insurance
CA St. Mtg. – insured by California State Mortgage
CBOT – Chicago Board of Trade
CP – Certificates of Participation
FGIC – insured by Financial Guaranty Insurance Co.
FHA – insured by Federal Housing Administration
FSA – insured by Financial Security Assurance, Inc.
GO – General Obligation Bond
MBIA – insured by Municipal Bond Investors Assurance
NR – Not Rated
VA – Department of Veterans Affairs
XLCA – insured by XL Capital Assurance
Other Investments:
(1) Futures contracts outstanding at January 31, 2008:
Type
Contracts
Market
Value
(000)
Expiration
Date
Unrealized
Appreciation
Short: U.S. Treasury Bond Futures
(56
)
$
(6,682
)
3/19/08
$
3,500
(2) Transactions in options written for the nine months ended January 31, 2008:
Contracts/Notional
Premiums
Options outstanding, April 30, 2007
—
$
—
Options written
864
596,164
Options outstanding, January 31, 2008
864
$
596,164
Item 2. Controls and Procedures
(a)
The registrant’s President and Chief Executive Officer and Principal Financial Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-2(c) under the Act (17CFR270.30a-3(c)), are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.
(b)
There were no significant changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d)) under the Act (17 CFR270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3. Exhibits
(a)
Exhibit 99.302 Cert. – Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: PIMCO California Municipal Income Fund
By /s/ Brian S. Shlissel
President & Chief Executive Officer
Date: March 26, 2008
By /s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer
Date: March 26, 2008
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.
By /s/ Brian S. Shlissel
President & Chief Executive Officer
Date: March 26, 2008
By /s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer
Date: March 26, 2008