NEW YORK, Jan. 8, 2008 (PRIME NEWSWIRE) -- The Board of Trustees of the PIMCO Income Opportunity Fund (the "Fund") (NYSE:PKO) announced today that it has declared the Fund's initial monthly dividend of $0.177 per common share. At the Fund's initial offering price of $25.00 per share, this monthly dividend rate represents an annualized distribution yield of 8.5%.
The dividend will be payable on February 1, 2008 to shareholders of record on January 18, 2008 with an ex-dividend date of January 16, 2008.
Going forward, it is anticipated that the Fund will declare monthly dividends on the first business day of each month with a payment date on the first business day of the following month. The next monthly dividend is expected to be declared on or about February 1, 2008 and be payable on or about March 3, 2008. Although it does not currently intend to do so, as portfolio and market conditions change, the rate of dividends on the common shares and the Fund's policy to pay dividends monthly could be changed by the Board of Trustees.
Based on projections through the payable date, it is expected that this distribution will be comprised of net investment income, as well as net gains from the sale of portfolio securities and other sources. The Fund will provide a notice accompanying each monthly distribution with respect to the estimated source of the distribution made, which could be from net income, gains and/or return of capital, and will indicate the proportion of its capital gain distributions that constitute short-term and long-term gains annually.
The Fund is a newly organized, non-diversified, closed-end management investment company. The Fund's investment objective is to seek current income as a primary focus and also capital appreciation. There can be no assurance that the objective will be achieved.
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 (PIMCO), an Allianz Global Investors Fund Management affiliate, serves as the Fund's sub-adviser. Allianz is a leading global financial services company.
The Fund's daily New York Stock Exchange closing price and 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. 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 Fund's 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.
The actual composition and character of the distribution described above and future distributions of the Fund may be materially different from the composition or character of such distributions that existed at the time of this press release. Such factors include the varied nature of the Fund's investments and the performance of those investments, and that the ultimate characterization of the Fund's distributions cannot finally be determined until the end of the Fund's fiscal year, resulting in the possibility of a return of capital if the Fund makes total distributions during a calendar or fiscal year in an amount that exceeds the Fund's net investment income and net realized capital gains for the fiscal year. As a result of the foregoing and other factors, no assurance can be given as to the actual composition or character of Fund distributions at the time of this press release by the Fund, Allianz Global Investors Fund Management LLC, PIMCO, nor any of their trustees, members, officers or employees.