NEW YORK, Dec. 2, 2008 (GLOBE NEWSWIRE) -- PIMCO High Income Fund (the "Fund") (NYSE:PHK), a diversified, closed-end management investment company which seeks high current income with capital appreciation as a secondary objective, today announced its results for the fiscal quarter and six months ended September 30, 2008.
At September 30,
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2008 2007
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Net Assets (a) $1,895,060,970 $2,560,664,088
Common Shares Outstanding 117,580,758 116,037,687
Net Asset Value ("NAV") $8.46 $14.31
Market Price $8.54 $14.57
Premium to NAV 0.95% 1.82%
Quarter ended September 30,
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2008 2007
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Net Investment Income (b) $45,893,377 $51,159,996
Per Common Share (b) $0.38 $0.44
Net Realized and Change in
Unrealized Loss (b) $(287,879,715) $(36,712,737)
Per Common Share (b) $(2.45) $(0.32)
Undistributed (Overdistributed)
Net Investment Income Per
Common Share (c)(d) $(0.028) $0.054
Six Months ended September 30,
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2008 2007
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Net Investment Income (b) $91,260,469 $101,539,884
Per Common Share (b) $0.77 $0.88
Net Realized and Change in
Unrealized Loss (b) $(322,335,742) $(94,909,123)
Per Common Share (b) $(2.74) $(0.82)
(a) Net assets are inclusive of market value of Preferred Shares
of $900 million at September 30, 2008. The Fund has announced it
will redeem $438 million of its preferred shares, beginning
December 8, 2008 and concluding 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) 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 quarter and six months ended September
30, 2008 was $1,646,675 ($0.02 per common share) and $4,345,123
($0.04 per common share) lower, respectively (and Net Realized and
Change in Unrealized Loss correspondingly lower) than those
figures would have been if swap amounts were treated as net income
in accordance with federal income tax treatment. By using GAAP,
Net Investment Income for the quarter and six months ended
September 30, 2007 was $7,675,006 ($0.07 per common share) and
$13,509,515 ($0.12 per common share) lower, respectively (and Net
Realized and Change in Unrealized Loss correspondingly lower) than
those figures would have been if swap amounts treated as net
income in accordance with federal income tax treatment.
(c) Calculated using the accumulated balance at September 30, 2008
and September 30, 2007, respectively.
(d) 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 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 Trustee 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.
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 http://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 maintain leverage and pay dividends to common shareholders is subject to the restrictions in their registration statement, by-laws and other governing documents. In making any investment decision, individuals should utilize other information sources need the advice of their own professional adviser.