PIMCO Corporate Income Fund & PIMCO Corporate Opportunity Fund Announce Change to Effective Date for Fund Name & Investment P...
24 November 2011 - 8:00AM
Business Wire
PIMCO Corporate Income Fund (NYSE:PCN) and PIMCO Corporate
Opportunity Fund (NYSE:PTY) (each a “Fund” and, collectively, the
“Funds”) have announced that changes to the Funds’ names and
investment policies will take effect on or about February 1, 2012,
following 60 days’ notice to Fund shareholders. The effective date
for the changes has been extended from the previously announced
date of December 1, 2011 because, due to administrative error, the
notification of the changes was not mailed to all shareholders as
required by law.
As announced in a press release dated September 21, 2011, PCN
will change its name to PIMCO Corporate & Income Strategy Fund
and PTY will change its name to PIMCO Corporate & Income
Opportunity Fund. The New York Stock Exchange ticker symbols for
the Funds' common shares (PCN and PTY) will remain the same.
In connection with the name changes, each Fund will also rescind
its current non-fundamental investment policy, under normal market
conditions, to invest at least 80% of its total assets in a
diversified1 portfolio of U.S. dollar-denominated corporate debt
obligations of varying maturities and other corporate
income-producing securities. Each Fund will replace this policy
with a new non-fundamental policy, under normal market conditions,
to invest at least 80% of its total assets in a combination of
corporate debt obligations of varying maturities, other corporate
income-producing securities, and income-producing securities of
non-corporate issuers, such as U.S. Government securities,
municipal securities and mortgage-backed and other asset-backed
securities issued on a public or private basis. In addition, each
Fund will observe an investment guideline of normally investing at
least 25% of its total assets in corporate debt obligations and
other corporate income-producing securities. Each Fund remains
subject to its current investment limit to invest up to 25% of its
total assets (measured at the time of investment) in non-U.S.
dollar denominated securities.
The Board of Trustees of PCN and PTY approved the name and
investment policy changes based on recommendations from Allianz
Global Investors Fund Management LLC (“AGIFM”), the Funds’
investment manager, and Pacific Investment Management Company LLC
("PIMCO"), the Funds' sub-adviser, that the changes will be in the
best interests of each Fund and its shareholders by providing the
Fund with additional flexibility to pursue potentially advantageous
areas of the global credit markets, including “non-corporate” and
non-U.S. dollar-denominated debt and other income-producing
securities.
The investment 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.
There can be no assurance that the Funds will meet their
objectives.
AGIFM is an indirect, wholly-owned subsidiary of Allianz Global
Investors of America L.P. and a member of Munich-based Allianz
Group. PIMCO is an affiliate of AGIFM.
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 Funds’ 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 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.
1 In the case of PCN only.
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