NEWPORT BEACH, Calif., Feb. 27, 2004 (PRIMEZONE) -- On February 17, 2004, the Attorney General of the State of New Jersey filed a complaint alleging, among other things, that Pacific Investment Management Company LLC ("PIMCO"), the investment adviser to PIMCO Commercial Mortgage Securities Trust, Inc. (the "Fund"), PIMCO Advisors Fund Management LLC ("PAFM"), and certain of their affiliates, had failed to disclose that they improperly allowed certain client accounts to engage in "market timing" in certain open-end investment companies ("mutual funds") advised by PIMCO and PAFM. PIMCO, PAFM and certain of their affiliates have also been named as defendants in a putative class action lawsuit filed in U.S. District Court, District of New Jersey, on February 20, 2004, relating to alleged facts similar to those in the New Jersey Attorney General's complaint. The lawsuit seeks unspecified compensatory damages.
In November 2003, the Securities and Exchange Commission (the "Commission") settled an enforcement action against a broker-dealer unaffiliated with PIMCO, PAFM, and the Fund, relating to the undisclosed receipt of fees from certain mutual fund companies in return for preferred marketing of their funds, and announced that it would be investigating mutual funds and their distributors generally with respect to compensation arrangements relating to the sale of mutual fund shares. Pursuant to that announcement, the Commission is investigating PIMCO, PAFM, and certain of their affiliates regarding directed brokerage and revenue sharing arrangements involving mutual funds advised by PIMCO and PAFM. PIMCO, PAFM, and certain of their affiliates also have been named as defendants in a putative class action lawsuit that challenges the brokerage and distribution arrangements, including revenue-sharing arrangements, of mutual funds advised by PIMCO and PAFM. The complaint, filed in U.S. District Court, District of Connecticut, on February 17, 2004, generally alleges that PIMCO and PAFM inappropriately used assets of these mutual funds to pay brokers to promote the investment companies by directing brokerage transactions to such brokers, and did not fully disclose such arrangements to shareholders. The lawsuit seeks unspecified compensatory damages. In addition, the Attorney General of the State of California has publicly announced an investigation into the matters referenced above.
With the exception of the putative class action filed in U.S. District Court in New Jersey, which is described above and which names the Fund as a defendant, none of the foregoing investigations or lawsuits directly involves the Fund.
Although it is not possible to predict what, if any, effect the foregoing will have on the market for shares of the Fund, PIMCO does not believe that these developments will have a material adverse effect on PIMCO's ability to perform its advisory services to the Fund.
The Funds' monthly New York Stock Exchange closing prices, net asset values per share as well as other information are available at www.pcmfund.com or by calling 1-866-746-2606.
Certain statements in this release constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Fund to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. As a result of the foregoing and other factors, no assurance can be given as to such future results, levels of activity or achievements, and neither the Fund, PIMCO, nor any other person assumes responsibility for the accuracy and completeness of such statements.