NEW YORK, Nov. 8, 2007 (PRIME NEWSWIRE) -- 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 nine months ended August 31, 2007.
At August 31,
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2007 2006
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Net Assets (a) $1,487,190,740 $1,563,084,826
Common Shares Outstanding 65,908,162 65,391,456
Net Asset Value ("NAV") $13.99 $15.26
Market Price $14.55 $17.86
Premium to NAV 4.00% 17.04%
Quarter Ended August 31,
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2007 2006
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Net Investment Income (b) $ 25,644,805 $ 25,092,621
Per Common Share (b) $0.39 $0.37
Net Realized and Change in
Unrealized Gain (Loss) $ (60,007,718) $ 20,421,341
Per Common Share (b) $(0.91) $0.31
Overdistributed Net Investment
Income Per Common Share (c) $ (0.0948)(d) $ (0.0723)(e)
Nine Months Ended August 31,
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2007 2006
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Net Investment Income (b) $ 75,778,501 $ 77,365,796
Per Common Share (b) $1.15 $1.18
Net Realized and Change in
Unrealized Gain (Loss) (b) $ (72,144,749) $ 5,256,560
Per Common Share (b) $(1.09) $0.08
(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) by the Fund 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
nine months ended August 31, 2007 was $3,988,307
($0.06 per common share) and $9,299,775 ($0.14 per common share)
lower, respectively (and Net Realized and Change in Unrealized
Gain (Loss) correspondingly higher (lower)) than those figures
would have been 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 nine months
ended August 31, 2006 was $13,959,633 ($0.21 per common share)
and $23,423,719 ($0.36 per common share) lower, respectively
(and Net Realized and Change in Unrealized Gain correspondingly
higher) than those figures would have been if swap amounts were
treated as net income (loss) in accordance with federal income
tax treatment.
(c) 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 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 amounts received under swap
agreements, in accordance with federal income tax treatment.
(d) Calculated using the accumulated balance at August 31, 2007.
(e) Calculated using the average fiscal year-to-date month-end
balances for the three months ended August 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 investment adviser.
The Fund's daily New York Stock Exchange closing price, net asset value per common 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.