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Allianz Global Investors Fund Management LLC Announces Changes to Duration Guidelines of PIMCO Corporate Opportunity Fund, PIMC

^{Published on 2011-04-20 13:10:54 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Allianz Global Investors Fund Management LLC (aAGIFMa), investment manager to PIMCO Corporate Opportunity Fund (NYSE:PTY), PIMCO High Income Fund (NYSE:PHK), and PIMCO Corporate Income Fund (NYSE:PCN), (each a aFunda and collectively, the aFundsa) announced that the Boards of Trustees of each Fund approved an expansion of the Fundsa™ duration guidelines, such that each Fund will, under normal market conditions, maintain an average portfolio duration of between zero and eight years. These changes take effect today.

PTY, PHK and PCN previously observed intermediate average portfolio duration ranges a" normally between four and eight years for PTY and PHK and three and seven years for PCN. Each Funda™s sub-adviser, Pacific Investment Management Company LLC (aPIMCOa), recommended expanding each Funda™s average portfolio duration range to provide added flexibility in managing interest rate risk within the Fundsa™ portfolios in what PIMCO anticipates to be a potentially prolonged period of rising market interest rates. In addition, the expansion of the Fundsa™ duration guidelines marks consistency across all five of the closed-end Funds sub-advised by PIMCO that focus on corporate bonds: PTY, PHK, PCN, PIMCO Income Strategy Fund (NYSE:PFL) and PIMCO Income Strategy Fund II (NYSE: PFN).

Duration is a measure of the expected life of a debt security that is used to determine the sensitivity of the securitya™s price to changes in interest rates. The longer a securitya™s duration, the more sensitive it will be to changes in interest rates. The maturity of a security, another commonly used measure of price sensitivity, measures only the time until final payment is due, whereas duration takes into account the pattern of all payments of interest and principal on a security over time, including how these payments are affected by prepayments and by changes in interest rates, as well as the time until an interest rate on a security is reset (in the case of variable-rate securities).

The investment objective of PTY is to seek maximum total return through a combination of current income and capital appreciation. PHK's primary investment objective is to seek high current income. Capital appreciation is a secondary objective. PCNa™s primary objective is to seek high current income with secondary objectives of capital preservation and 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. 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) 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.