PIMCO Strategic Global Government Fund, Inc.: First Quarter Investment Performance Results and Statistical Portfolio Information

Newport Beach, California, UNITED STATES

NEWPORT BEACH, Calif., May 1, 2003 (PRIMEZONE) -- PIMCO Strategic Global Government Fund, Inc. (NYSE:RCS) today released its investment performance results and statistical portfolio information for the period January 1, 2003 through March 31, 2003 (first quarter).

PIMCO Strategic Global Government Fund, Inc. ("RCS" or the "Fund") is a closed-end, intermediate-term bond fund whose primary objective is to generate a level of income higher than that generated by high-quality, intermediate-term U.S. debt securities. Pacific Investment Management Company LLC ("PIMCO"), an investment adviser with more than $323 billion of assets under management as of March 31, 2003, is responsible for managing the Fund's investment portfolio.

       Investment Performance, Price and Dividend Information

      The Fund's valuation and investment performance information
      are as follows:

 Performance for the periods ended 03/31/03
                                3      6      1       3         5
                              Mos     Mos    Year   Years(a)  Years(a)
 RCS Based on Net Asset
  Value (%)                   2.96    8.16   11.94   12.80      8.53

 Based on NYSE Share
  Price (%)                  -0.64    0.74   14.66   20.19     11.47
 Lehman Intermediate
  Aggregate Index (%)         1.27    2.82   10.54    9.53      7.41

  (a)  Annualized.

The Fund's total return investment performance is net of all fees and expenses and assumes the reinvestment of dividends.

                        Price Information

 Pricing Date            NYSE Share Price       Net Asset Value
 ------------            ----------------       ---------------
 03/31/2003                   $11.50                 $11.42

 12/31/2002                   $11.93                 $11.31

 03/31/2002                   $10.97                 $11.23

 Date                        Premium/(Discount) to Net Asset Value
 ----                        -------------------------------------
 03/31/2003                                 0.70%

 12/31/2002                                 5.48%

 03/31/2002                                -2.32%
                          Dividend Information
 Regular monthly dividend per share:                            $0.074
 Total dividends declared in the quarter:                       $0.222
 Annualized dividend yield at 3/31/03 based on NYSE share price: 7.72%
 Annualized dividend yield at 3/31/03 based on net asset value:  7.78%

                          Portfolio Statistics

     The Fund's investment portfolio had the following characteristics
     as of March 31, 2003:

 Net Assets:           $402.1 million
 Average Duration:     3.43 years
 Average Maturity:     4.86 years
 Quality Ratings:      82% AAA, 0% AA, 1% A, 5% BBB, 7% BB, 4% B,
                       1% less than B
 Average Quality:      AAA
 Sector Weightings:    64.9% Mortgage-Backed (44.8% FNMA, 6.1% GNMA,
                       13.3% FHLMC, 0.7% Other), 9.4% Emerging Markets
                       (1.9% Brazil, 0.3% Chile, 1.6% Russia, 0.8%
                       Ecuador, 2.0% Mexico, 0.8% Panama, 1.4% Peru,
                       0.3% Malaysia, 0.3% Tunisia), 32.7% Cash and
                       Equivalents, -7.0% U.S. Treasury/Agency

Market Commentary

Despite declining U.S. Treasury yields, record prepayments and heavy new issuance, mortgage-backed securities continued to gain in the first quarter of 2003. Continuing last year's trend, strong demand from financial institutions and overseas buyers sustained premium prices and drove yields to historic lows.

Investors were dissatisfied with money market and Treasury yields near 40-year lows, but remained nervous about stocks amid weak economic growth and geopolitical uncertainty. As a result, capital flocked to fixed-income sectors such as mortgages that offered substantial yield premiums versus Treasuries.

The broad U.S. bond market, represented by the Lehman Brothers Intermediate Aggregate Index, gained 1.27 percent during the quarter. Treasury yields were volatile as investor sentiment regarding safe assets shifted back and forth depending on news about the war with Iraq. For the full quarter, two-year yields fell 12 basis points but yields on other maturities wound up little changed. The benchmark 10-year Treasury yield closed two basis points lower at 3.80 percent.

Mortgage rates tracked Treasuries higher and lower throughout the quarter. The par Fannie Mae coupon closed in January at 5.23 percent, plunged further in February to close at an all-time low of 4.97 percent and then dropped to another all-time low of 4.88 percent in March. Mortgage rate volatility in March was unprecedented. During one 15-day span in March, rates jumped nine straight days rising 51 basis points and then dropped the next six days by 36 basis points. Homeowners continued their refinancing binge, as evidenced by the Mortgage Banker's Association Refinancing Index, which skyrocketed from the lofty average of 5,000 in the fourth quarter of 2002 to 9,327 in March 2003, a new record level. This reading indicates that likely prepayment speeds of refinanceable coupons are poised to soar in the next three months.

Although the credit-risk aversion seen in the fourth quarter of last year abated somewhat in the first quarter of 2003, demand from financial institutions still drove issuance of collateralized mortgage obligations, in addition to creating outright demand for mortgage pass-through securities. CMO issuance helped to absorb new mortgage supply resulting from record homeowner refinancing. Agency CMO issuance so far in 2003 of $64 billion per month was 37 percent greater than last year's record pace.

Emerging market bonds had a strong first quarter, returning 6.6 percent, as measured by JP Morgan's EMBI Global Index. Despite heightened geopolitical concerns and spikes in market volatility, three factors combined to produce attractive returns: improving internal fundamentals in many, though not all, emerging nations; the favorable net impact of higher commodity prices; and significant funds flows into the asset class triggered by wider recognition of the maturation of the asset class.

As another signal of greater policy responsibility, emerging countries saved rather than consumed the windfall from higher commodity prices. The windfall contributed to larger holdings of international reserves, thereby strengthening countries' self-insurance against global instability. Finally, the asset class benefited from strong technicals. Strong inflows were accompanied by reduced new issuance in March, as most countries were active in pre-funding 2003 requirements in preparation for heightened global uncertainty.

The influence of positive fundamentals was most notable in Latin America, which returned 7.2 percent for the quarter, according to the JP Morgan EMBI Global sub-index. The region was largely guided by improvement in investor sentiment in Brazil, whose bonds returned 20.8 percent. Investors responded enthusiastically to signals of the government's commitment to policy enhancements, favorable endogenous adjustments in economic and financial conditions and improving debt dynamics.

Ecuador was also a top performer in Latin America, as the country received final approval for the IMF agreement, which will lead to multilateral disbursements of approximately US$500 million in 2003.

Solid first quarter gains were posted in Russia, which has demonstrated reasonable fundamentals. Russia has reduced its debt burden to more manageable levels and increased its international reserves due to high levels of commodity exports. Investors have also favorably received Russia's efforts to diversify its economic base.

For further information, please contact Jeff Sargent, PIMCO Strategic Global Government Fund, Inc., at (949) 720-4712.

Past performance is no guarantee of future results. Investment return, dividend rate and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost.


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