NEW YORK, April 3, 2006 (PRIMEZONE) -- The Boards of Trustees of PIMCO Corporate Income Fund (NYSE:PCN), PIMCO Corporate Opportunity Fund (NYSE:PTY) and PIMCO High Income Fund (NYSE:PHK) (collectively, the "Funds") announced today that they have declared the following dividends on the Funds' common shares:
PIMCO Corporate Income Fund $0.10625 per common share PIMCO Corporate Opportunity Fund $0.1375 per common share PIMCO High Income Fund $0.121875 per common share
The dividends will be payable on May 1, 2006 to shareholders of record on April 13, 2006, with an ex-dividend date of April 11, 2006.
At March 31, 2006, the Funds' net assets(a) were approximately:
PIMCO Corporate Income Fund $823.4 mil.
PIMCO Corporate Opportunity Fund $1.6 bil.
PIMCO High Income Fund $2.6 bil.
(a) Net assets are inclusive of market value of Preferred Shares of
$300 million, $565 million and $900 million for PCN, PTY and
PHK, respectively.
The following changes to the investment policies of PCN and PTY, which have been approved by each Fund's Board of Trustees, are effective today. The Boards and the Investment Manager believe these changes are in best interest of the Funds and their shareholders.
PTY's policy that it may invest up to 7.5% of its total assets in securities of issuers located in "emerging market" countries has been revised such that PTY may invest up to 10% of its total assets in such securities. In addition, PTY's policy of investing up to 10% of its total assets in credit default swaps, as measured by the notional amount of the swap, has been eliminated such that PTY may invest without limit in credit default swaps, subject to its other investment policies and restrictions. In this regard, the Investment Manager currently considers credit default swaps to be illiquid and treats the market value of the contract as illiquid for purposes of determining compliance with PTY's policy to invest not more than 20% of its total assets in securities which are illiquid at the time of investment.
PTY and PCN also have each eliminated the investment policy that permits each Fund to invest up to 20% of its total assets in other types of debt instruments. This change in no way affects each Fund's intention to invest at least 80% of its total assets in a portfolio of U.S. dollar-denominated corporate debt obligations and other corporate income-producing securities (the "80% requirement"). Each Fund may now invest the balance of its assets (i.e., assets not devoted to satisfying the 80% requirement) in any type of security or instrument, subject to each Fund's other investment policies and restrictions.
The Funds are closed-end management investment companies. The primary objective of PCN is to seek high current income with secondary objectives of capital preservation and appreciation. The investment objective of PTY is to seek maximum total return through a combination of current income and capital appreciation. PHK's primary objective is to seek high current income with capital appreciation as a secondary objective. There can be no assurance the Funds will meet their objectives.
Allianz Global Investors Fund Management LLC, an indirect, wholly-owned subsidiary of Allianz Global Investors of America L.P., serves as the Funds' 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 Funds' sub-adviser.
The Funds' daily New York Stock Exchange closing prices, net asset values per share as well as other information, including updated portfolio statistics and performance are available at www.allianzinvestors.com or by calling the Funds' shareholder servicing agent at 1-800-331-1710.
Statements made in this release that look forward in time involve risks and uncertainties and are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such risks and uncertainties include, without limitation, the adverse effect from a decline in the securities markets or a decline in the Funds' performance, a general downturn in the economy, competition from other companies, changes in government policy or regulation, inability to attract or retain key employees, inability to implement its operating strategy and/or acquisition strategy, and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations.