NEW YORK, April 6, 2009 (GLOBE NEWSWIRE) -- Allianz Global Investors Fund Management LLC ("AGIFM"), investment manager to PCM Fund, Inc. (NYSE:PCM), PIMCO Corporate Income Fund (NYSE:PCN), PIMCO Corporate Opportunity Fund (NYSE:PTY), PIMCO Floating Rate Income Fund (NYSE:PFL), PIMCO Floating Rate Strategy Fund (NYSE:PFN), PIMCO High Income Fund (NYSE:PHK), PIMCO Strategic Global Government Fund Inc. (NYSE:RCS), and PIMCO Income Opportunity Fund (NYSE:PKO) (each a "Fund" and collectively, the "Funds") is issuing this press release today to make explicit that each Fund's investment policies allow it to hold common stock received from conversion of other portfolio securities, such that common stocks may represent up to 20% of a Fund's total assets. The Board of Trustees formally approved of this policy based on a recommendation from AGIFM and the Funds' sub-adviser, Pacific Investment Management Company LLC ("PIMCO"), that having the ability to hold common stock under these circumstances would be in the best interest of the Funds and the Funds' shareholders.
The Funds may invest in preferred stock and convertible securities, and these securities may allow for conversion into common stock. PIMCO believes it is in the best interests of the Funds to have the flexibility to participate in such conversions and to hold common stock received in such conversions until adequate value can be realized or it otherwise deems it appropriate to dispose of common stock holdings.
Holding common stocks involve risks different from or in addition to the risks associated with debt instruments. The market price of common stocks and other equity securities may go up or down, sometimes rapidly or unpredictably. The value of a company's equity securities may fall as a result of factors directly relating to that company, such as decisions made by its management or lower demand for the company's products or services. The value of an equity security may also fall because of factors affecting not just the company, but also companies in the same industry or sector, or in a number of different industries or sectors, such as increases in production costs. The value of a company's equity securities may also be affected by changes in financial markets that are relatively unrelated to the company or its industry, such as changes in interest rates or currency exchange rates, adverse circumstances involving the credit markets, periods of relative illiquidity, volatility, and perceived or actual instability in the banking and financial service sectors. In addition, because a company's equity securities rank junior in priority to the interests of bond holders and other creditors, a company's equity securities will usually react more strongly than its bonds and other debt to actual or perceived changes in the company's financial condition or prospects. Equity securities generally have greater price volatility and usually produce lower yields than bonds and other debt securities.
PCM's primary investment objective is to seek high current income and capital appreciation is a secondary objective. The primary objective of PCN is to seek high current income with secondary objectives of capital preservation and appreciation. The investment objective of PTY is to seek maximum total return through a combination of current income and capital appreciation. PFL's and PFN's investment objective is to seek high current income consistent with the preservation of capital. PHK's primary investment objective is to seek high current income. Capital appreciation is a secondary objective. RCS's primary objective is to generate income. PKO's investment objective is to seek current income as a primary objective along with capital appreciation. There can be no assurance that the Funds will meet their objectives.
Allianz Global Investors Fund Management LLC, an indirect, wholly-owned subsidiary of Allianz Global Investors of America L.P., serves as the Funds' 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 Funds' sub-adviser.
The Funds' New York Stock Exchange closing prices, net asset values per share, as well as other information, including updated portfolio statistics and performance, is available at http://www.allianzinvestors.com or by calling the Funds' shareholder servicing agent at (800) 331-1710.
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 further declines in the securities markets and in the Fund's performance, a general downturn in the economy, competition from other companies, changes in government policy or regulation, inability to attract or retain key employees, inability to implement their operating strategy and/or acquisition strategy, and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations. The Fund's ability to pay dividends to common shareholders is subject to the restrictions in its registration statement and other governing documents as well as the Investment Company Act of 1940.