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Allianz Global Investors Fund Management LLC Provides Statement on Demand Letters Regarding Auction Rate Preferred Shares

^{Published on 2010-07-02 13:05:36 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Allianz Global Investors Fund Management LLC (aAGIFMa), investment manager to each of the 7 closed-end funds (the aFundsa) listed below, announced that each Fund received one or more demand letters from a law firm on behalf of certain common shareholders of the Funds.

The named Funds are:

• PIMCO Corporate Income Fund (NYSE: PCN)
• PIMCO Corporate Opportunity Fund (NYSE: PTY)
• PIMCO High Income Fund (NYSE: PHK)
• PIMCO Income Strategy Fund (formerly, PIMCO Floating Rate Income Fund) (NYSE: PFL)
• PIMCO Income Strategy Fund II (formerly, PIMCO Floating Rate Strategy Fund) (NYSE: PFN)
• PIMCO Municipal Income Fund II (NYSE: PML)
• Nicholas-Applegate Convertible & Income Fund II (NYSE: NCZ)

The demand letters allege that AGIFM and certain officers and Trustees of the Funds breached their fiduciary duties in connection with the redemption at par of a portion of the Fundsa™ auction rate preferred shares (aARPSa) and demand that the Boards of Trustees take certain action to remedy those alleged breaches. The independent Trustees of the Board of each Fund are evaluating the demand letters.

AGIFM, 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. Pacific Investment Management Company LLC and Nicholas-Applegate Capital Management LLC, AGIFM affiliates, serve as the Fundsa™ sub-advisers. 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) 254-5197.

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 Fundsa™ 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. Each Funda™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.