NEW YORK, March 11, 2008 (PRIME 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, 2007.
At December 31,
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2007 2006
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Net Assets (a) $2,348,474,669 $2,637,331,449
Common Shares Outstanding 116,113,333 115,345,691
Net Asset Value ("NAV") $12.47 $15.06
Market Price $11.93 $15.95
Premium (Discount) to NAV (4.33)% 5.91%
Quarter ended December 31,
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2007 2006
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Net Investment Income (b) $50,366,060 $48,602,643
Per Common Share (b) $0.43 $0.41
Net Realized and Change
in Unrealized Gain (Loss) (b) $(77,853,471) $66,960,499
Per Common Share (b) $(0.67) $0.59
Undistributed Net Investment
Income Per Common Share (c) $0.0913(d) $0.0476(e)
Nine Months ended December 31,
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2007 2006
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Net Investment Income (b) $151,905,944 $144,719,254
Per Common Share (b) $1.31 $1.25
Net Realized and Change
in Unrealized Gain (Loss) (b) $(172,762,594) $57,416,895
Per Common Share (b) $(1.49) $0.50
(a) Net assets are inclusive of market value of Preferred Shares
of $900 million.
(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, 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 Gain (Loss)
correspondingly higher (lower)) than those figures would have
been if swap amounts were treated as net income (loss) in
accordance with federal income tax treatment. By using GAAP, Net
Investment Income for the quarter and nine months ended December
31, 2006 was $5,070,895 ($0.05 per common share) and $14,832,211
($0.13 per common share) lower, respectively (and Net Realized
and Change in Unrealized Gain (Loss) correspondingly higher
(lower)) than those figures would have been if swap amounts
treated as net income (loss) in accordance with federal income
tax treatment.
(c) 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
(overdistributed) 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 (overdistributed) net investment
income balance will remain constant. Inclusive of amounts earned
under swap agreements, in accordance with federal income tax
treatment.
(d) Calculated using the accumulated balance at December 31, 2007.
(e) Calculated using the average year-to-date month-end balances
for the three months ended December 31, 2006.
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. In making any investment decision, individuals should utilize other information sources and the advice of their own professional adviser.