NEW YORK, March 4, 2009 (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 nine months ended December 31, 2008.
At December 31,
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2008 2007
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Net Assets (a) $1,099,832,043 $2,348,474,669
Common Shares Outstanding 117,719,139 116,113,333
Net Asset Value ("NAV") $5.42 $12.47
Market Price $5.53 $11.93
Premium (Discount) to NAV 2.03% (4.33)%
Quarter ended December 31,
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2008 2007
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Net Investment Income (b) $39,336,210 $50,366,060
Per Common Share (b) $0.34 $0.43
Net Realized and Change in Unrealized
Loss (b) $(351,272,475) $(77,853,471)
Per Common Share (b) $(2.98) $(0.67)
Undistributed Net Investment
Income Per Common Share (c)(d) $0.0019 $0.0913
Nine Months ended December 31,
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2008 2007
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Net Investment Income (b) $130,596,679 $151,905,944
Per Common Share (b) $1.11 $1.31
Net Realized and Change in Unrealized
Loss (b) $(673,608,217) $(172,762,594)
Per Common Share (b) $(5.72) $(1.49)
(a) Net assets are inclusive of market value of Preferred Shares of $462 million at December 31, 2008. The Fund has announced it will redeem $96 million of its Preferred Shares beginning March 16, 2009 and concluding March 20, 2009.
(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 nine months ended December 31, 2008 was $3,360,334 ($0.03 per common share) and $7,705,457 ($0.07 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 nine months ended December 31, 2007 was $8,892,244 ($0.07 per common share) and $22,401,759 ($0.19 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 December 31, 2008 and December 31, 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 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 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 and pay dividends to common shareholders is subject to the restrictions in its registration statement, 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.