NEW YORK, July 27, 2006 (PRIMEZONE) -- PIMCO Corporate Opportunity Fund (the "Fund") (NYSE: PTY), a closed-end management investment company which seeks maximum total return through a combination of current income and capital appreciation, today announced its results for the fiscal quarter and six months ended May 31, 2006.
At May 31, 2006 At May 31, 2005
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Net Assets (a) $1,549,709,346 $1,612,811,651
Common Shares Outstanding 65,271,463 64,705,169
Net Asset Value ("NAV") $15.09 $16.19
Market Price $17.06 $16.78
Premium to NAV 13.06% 3.64%
Quarter ended
May 31, 2006 May 31, 2005
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Net Investment Income (b) $26,955,333 $17,377,906
Per Common Share (b) $0.42 $0.28
Net Realized and Change in
Unrealized Loss (b) $(36,803,544) $(12,958,060)
Per Common Share (b) $(0.56) $(0.21)
3 Month Average Undistributed
(Overdistributed) Net
Investment Income Per
Common Share (c) $(0.0192) $0.0950
Six Months ended
May 31, 2006 May 31, 2005
--------------- ---------------
Net Investment Income (b) $52,273,175 $48,531,580
Per Common Share (b) $0.81 $0.76
Net Realized and Change
in Unrealized Loss (b) $(15,164,781) $(1,380,364)
Per Common Share (b) $(0.23) $(0.03)
a) Net assets are inclusive of market value of Preferred shares of
$565 million.
b) The information provided is in accordance with generally
accepted accounting principles ("GAAP"), which requires the Fund
to treat amounts received (paid) under swap agreements as net
realized gain (loss). However, these amounts are treated as net
income (loss) for federal income tax purposes. By using GAAP, Net
Investment Income for the fiscal quarter and six months ended May
31, 2006 was $4,918,762 ($0.08 per common share) and $9,464,086
($0.15 per common share), respectively lower (and Net Realized
and Change in Unrealized Loss correspondingly lower) than those
figures would be if swap amounts were treated as net income
(loss) in accordance with federal income tax treatment.
By using GAAP, Net Investment Income for the fiscal quarter and
six months ended May 31, 2005 was $9,604,926 ($0.15 per common
share) and $16,929,068 ($0.26 per common share), respectively
lower (and Net Realized and Change in Unrealized Loss
correspondingly lower) than those figures would be if swap
amounts were treated as net income (loss) in accordance with
federal income tax treatment.
c) Calculated using the month-end balances for the three months
ended May 31, 2006. Please note that generally there is a close
correlation between what the Fund earns (net of expenses) and
what it pays in monthly dividends. However, since net earning
rates fluctuate from month to month while monthly dividends have
remained relatively stable, there will be periods when the Fund
may modestly over-earn or under-earn its monthly dividend which
would have the effect of adding to or subtracting from the Fund's
undistributed (overdistributed) net investment income balance.
Fund management analyzes the Fund's current and projected net
earning rates prior to recommending dividend amounts to the
Fund's Board of Trustees for declaration. There can be no
assurance that the current dividend rate or the undistributed
(overdistributed) net investment income balance will remain
constant. Inclusive of swap amounts receivables at November 30,
2005 and swap amounts accrued during the six months ended May 31,
2006.
Allianz Global Investors Fund Management LLC, an indirect, wholly-owned subsidiary of Allianz Global Investors of America L.P., serves as the Fund's investment manager and is a member of Munich-based Allianz Group (NYSE:AZ). Pacific Investment Management Company LLC, an Allianz Global Investors Fund Management affiliate, serves as the Fund's sub-adviser.
The Fund's daily New York Stock Exchange closing price, net asset value per share as well as other information is available at http://www.allianzinvestors.com/closedendfunds or by calling the Fund's shareholder servicing agent at (800) 331-1710.
The financial information contained herein is solely based upon the data available at the time of publication of this press release, and there is no assurance that future results will be the same or similar to what is reported herein. Information that was obtained from third party sources we believe to be reliable is not guaranteed as to its accuracy or completeness. This press release contains no recommendations to buy or sell any specific securities and should not be considered investment advice of any kind. Past performance is no guarantee of future results and the investment returns generated by the Fund will fluctuate. In making any investment decision, individuals should utilize other information sources and the advice of their own professional adviser.