NEW YORK, Oct. 9, 2007 (PRIME NEWSWIRE) -- PIMCO Floating Rate Strategy Fund (the "Fund") (NYSE:PFN), a closed-end management investment company which seeks high current income, consistent with the preservation of capital, today announced its results for the fiscal quarter and year ended July 31, 2007.
At July 31, 2007 At July 31, 2006
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Net Assets (a) $1,192,152,155 $1,262,370,931
Common Shares Outstanding 42,497,148 41,713,152
Net Asset Value ("NAV") $16.76 $18.76
Market Price $17.28 $18.87
Premium to NAV 3.10% 0.59%
Quarter ended Quarter ended
July 31, 2007 July 31, 2006
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Net Investment Income (b) $20,874,015 $20,474,419
Per Common Share (b) $0.51 $0.49
Net Realized and Change in
Unrealized Loss (b) $(74,843,855) $(4,745,585)
Per Common Share (b) $(1.77) $(0.12)
Undistributed
(Overdistributed) Net
Investment Income Per
Common Share (c) $0.0074 (d) $(0.0275)(e)
Year ended
July 31, 2007 (f)
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Net Investment Income (b) $86,345,791
Per Common Share (b) $2.06
Net Realized and Change in
Unrealized Loss (b) $(56,588,567)
Per Common Share (b) $(1.34)
(a) Net assets are inclusive of market value of Preferred Shares
outstanding of $480 million.
(b) The information provided is in accordance with generally accepted
accounting principles ("GAAP"), which requires the Fund to treat
amounts received 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 year ended July 31,
2007 was $4,497,307 ($0.11 per common share) and $12,277,452
($0.29 per common share) respectively, lower, (and Net Realized
and Change in Unrealized Loss correspondingly 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 ended
July 31, 2006 was $3,965,140 ($0.09 per common share) lower (and
Net Realized and Change in Unrealized Loss correspondingly lower)
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 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 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 earned under
swap agreements, in accordance with federal income tax treatment.
(d) Calculated using the accumulated balance at July 31, 2007.
(e) Calculated using the average fiscal year-to-date month-end
balances for the three months ended July 30, 2006.
(f) In December 2005, the Fund changed its fiscal year-end from
August 31 to July 31. Accordingly, prior period investment
operations comparative information is not provided.
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, weekly net asset value per share, as well as other information, is available at 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 any 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.