NEW YORK, Dec. 26, 2008 (GLOBE NEWSWIRE) -- Allianz Global Investors Fund Management LLC ("AGIFM"), investment manager to PIMCO High Income Fund (NYSE:PHK) (the "Fund"), announced today that the Fund's investment policies have been revised to remove existing limits on investment in illiquid securities (currently 20% of net assets) and the use of derivatives for non-hedging purposes (currently 25% of total assets), effective immediately. The Board of Trustees approved the changes based on a recommendation from AGIFM and the Fund's sub-adviser, Pacific Investment Management Company LLC ("PIMCO"), that the removal of these restrictions provides additional investment flexibility to respond to changing market conditions and better aligns the Fund's policies with those of other Allianz closed-end bond funds sub-advised by PIMCO.
These changes will provide the Fund with additional investment flexibility to increase its use of credit default swaps and other derivative instruments, including interest rate swaps, futures and options as an efficient means to gain investment exposure to high-yield and other debt obligations in which the Fund may invest directly. In addition to general market risks, the Fund's use of derivative instruments involves risks different from, or possibly greater than, the risks associated with direct investments in securities, including illiquidity risk, leverage risk, correlation risk and counterparty risk.
The Fund's investments in illiquid securities may trade at a discount from comparable, more liquid investments, may be subject to wide fluctuations in market value and be more difficult to value, and the Fund may not be able to dispose readily of illiquid securities when that would be beneficial at a favorable time or price.
The Fund's primary investment objective is to seek high current income. Capital appreciation is a secondary objective. There can be no assurance that the Fund will achieve its stated objectives.
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 prices and net asset values per share are available by calling the Fund's shareholder servicing agent at (800) 331-1710. This information, as well as updated portfolio statistics and performance, is available at http://www.allianzinvestors.com.
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 declines in the securities markets and in the Fund's performance, a general downturn in the economy, inability to obtain leverage to replace auction preferred shares that have been redeemed, competition from other companies, changes in government policy or regulation, inability to attract or retain key employees, inability to implement operating strategies and/or acquisition strategies, and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations. The Fund's ability to maintain leverage and to pay dividends to common shareholders are subject to the restrictions in its registration statements, By-laws and other governing documents as well as the Investment Company Act of 1940.