PCM Fund, Inc. (the "Fund") (NYSE: PCM), a non-diversified, closed-end management investment company, which seeks high current income, today announced its results for the fiscal quarter and nine months ended September 30, 2009, and restated ratios in its June 30, 2009 Semi-Annual Report to shareholders.
At September 30, | |||||||
2009 | Â | 2008 | |||||
Net Assets | $ | 82,576,519 | $ | 99,909,889 | |||
Shares Outstanding | 11,408,463 | 11,367,120 | |||||
Net Asset Value ("NAV") | $ | 7.24 | $ | 8.79 | |||
Market Price | $ | 7.60 | $ | 7.55 | |||
Premium (Discount) to NAV | 4.97 | % | (14.11 | )% | |||
Undistributed Net Investment | |||||||
Income Per Share (b) | $ | 0.1861 | $ | 0.2794 | |||
 | |||||||
Quarter ended September 30, | |||||||
2009 | 2008 | ||||||
Net Investment Income (a) | $ | 2,738,631 | $ | 834,305 | |||
Per Share (a) | $ | 0.23 | $ | 0.08 | |||
Net Realized and Change in Unrealized Gain (Loss) (a) | $ | 13,296,820 | $ | (11,357,321 | ) | ||
Per Share (a) | $ | 1.18 | $ | (1.01 | ) | ||
 | |||||||
 | |||||||
Nine Months ended September 30, | |||||||
2009 | 2008 | ||||||
Net Investment Income (a) | $ | 6,551,642 | $ | 5,874,582 | |||
Per Share (a) | $ | 0.57 | $ | 0.52 | |||
Net Realized and Change in Unrealized Gain (Loss) (a) | $ | 17,418,758 | $ | (27,013,333 | ) | ||
Per Share (a) | $ | 1.53 | $ | (2.38 | ) |
(a) The information provided is in accordance with generally accepted accounting principles ("GAAP"), which requires the Fund to treat amounts accrued by the Fund under swap agreements as net realized gain (loss). However, these amounts are treated as net income (loss) for federal income tax purposes. Consequently, pursuant to GAAP, Net Investment Income for the fiscal quarter and nine months ended September 30, 2009 was $182,478 ($0.02 per share) and $889,578 ($0.08 per share) lower, respectively (and Net Realized and Change in Unrealized Gain correspondingly higher) than those figures would have been if swap amounts were treated as net income in accordance with federal income tax treatment. By using GAAP, Net Investment Income for the fiscal quarter and nine months ended September 30, 2008 was $441,885 ($0.04 per share) and $1,447,908 ($0.13 per share) lower respectively (and Net Realized and Change in Unrealized Loss correspondingly higher lower) than those figures would have been if swap amounts were treated as net income in accordance with federal income tax treatment. |
 |
(b) 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 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 Directors for declaration. There can be no assurance that the current dividend rate or the undistributed net investment income balance will remain constant. Inclusive of amounts earned under swap agreements, in accordance with federal income tax treatment. |
The Fund's management identified computational errors on page 29 of the Fund's semi-annual report dated June 30, 2009. The restated information is as follows: ratio of expenses to average net assets including interest expense 3.37% (annualized), ratio of expenses to average net assets excluding interest expense 2.11% (annualized) and ratio of net investment income to average net assets 12.31% (annualized). Please note that interest expense relates to the Fund's investments in reverse repurchase agreement transactions.
Allianz Global Investors Fund Management LLC ("AGIFM"), 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. Pacific Investment Management Company LLC, an AGIFM 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) 254-5197.
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. There can be no assurance the Fund will meet its stated objective. In making any investment decision, individuals should utilize other information sources and the advice of their own professional adviser.
Contacts:
For Information on PIMCO Closed-End Funds:
Financial
Advisors: 800-628-1237
Shareholder: 800-285-4086
Media
Relations: 212-739-3501