NEW YORK, Jan. 15, 2009 (GLOBE NEWSWIRE) -- NEW YORK, January 15, 2009 -- PIMCO Corporate Income Fund (the "Fund") (NYSE:PCN), a closed-end management investment company which seeks to provide high current income with secondary objectives of capital preservation and appreciation, today announced its results for the fiscal quarter and year ended October 31, 2008.
At October 31,
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2008 2007
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Net Assets (a) $611,489,248 $802,714,033
Common Shares Outstanding 36,794,562 36,544,309
Net Asset Value ("NAV") $8.47 $13.76
Market Price $10.00 $14.25
Premium to NAV 18.06% 3.56%
Quarter ended October 31,
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2008 2007
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Net Investment Income(b) $10,469,367 $11,979,195
Per Common Share(b) $0.29 $0.34
Net Realized and Change in
Unrealized Gain (Loss)(b) $(117,510,975) $23,322,423
Per Common Share(b) $(3.19) $0.64
Overdistributed Net Investment
Income Per Common Share(c) $(0.0528)(e) $(0.1183)(d)
Year ended October 31,
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2008 2007
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Net Investment Income(b) $45,442,563 $47,292,960
Per Common Share(b) $1.24 $1.31
Net Realized and Change in
Unrealized Loss(b) $(181,777,813) $(18,556,980)
Per Common Share(b) $(4.94) $(0.51)
(a) Net assets are inclusive of market value of Preferred Shares
of $300 million. The Fund redeemed $30 million of Preferred
Shares from December 15, 2008 through December 19, 2008.
(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
year ended October 31, 2008 was $(1,356,294) ($(0.04) per common
share) and $10,307,906 ($0.28 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 and year ended October 31, 2007 was
$2,708,101 ($0.07 per common share) and $8,749,986 ($0.24 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.
(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 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 overdistributed 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 October 31, 2007.
(e) Calculated using the accumulated fiscal year-to-date "tax"
basis balance at October 31, 2008.
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, 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. There can be no assurance that the Fund will meet its objective. The Fund's ability to pay dividends to common shareholders is subject to the restrictions in their registration statements, By-laws and other governing documents as well as the Investment Company Act of 1940. In making any investment decision, individuals should utilize other information sources and the advice of their own professional adviser.