PIMCO Income Strategy Fund Reports Results for the Fiscal Quarter and Six Months Ended January 31, 2013
PIMCO Income Strategy Fund (the "Fund") (NYSE: PFL), a diversified
closed-end management investment company which seeks high current
income, consistent with the preservation of capital, today announced its
results for the fiscal quarter and six months ended January 31, 2013.
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At January 31,
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2013
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2012
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Net Assets (a)
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$386,705,632
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$337,876,767
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Common Shares Outstanding
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25,071,327
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24,894,204
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Net Asset Value ("NAV")
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$12.27
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$10.40
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Market Price
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$13.26
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$11.13
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Premium to NAV
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8.07%
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7.02%
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Undistributed (Overdistributed) Net Investment
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Income Per Common Share (c)
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$(0.0643)
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$0.2324
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Quarter ended January 31,
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2013
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2012
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Net Investment Income (b)
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$6,778,530
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$7,402,533
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Per Common Share (b)
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$0.27
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$0.29
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Net Realized and Change in Unrealized Gain (b)
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$10,219,914
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$358,297
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Per Common Share (b)
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$0.40
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$0.02
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Six Months ended January 31,
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2013
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2012
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Net Investment Income (b)
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$13,267,175
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$15,076,128
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Per Common Share (b)
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$0.53
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$0.60
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Net Realized and Change in Unrealized Gain (Loss) (b)
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$31,822,494
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$(23,811,680)
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Per Common Share (b)
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$1.27
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$(0.96)
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(a) Net assets are inclusive of Preferred Shares of $78,975,000.
(b) 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 and unrealized
gain (loss). However, these amounts are treated as net investment income
(loss) for federal income tax purposes. By using GAAP, Net Investment
Income for the fiscal quarter and six months ended January 31, 2013 was
$934,205 ($0.04 per common share) and $1,673,936 ($0.07 per common
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 investment income. By using GAAP, Net
Investment Income for the fiscal quarter and six months ended January
31, 2012 was $11,500 (less than $0.01 per common share) and $23,000
(less than $0.01 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
investment income.
(c) Since the Fund’s net earning rates fluctuate from month to month,
there will be periods when the Fund may over-earn or under-earn its
monthly dividend rate. This fluctuation will 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 Trustees for declaration. There can be no assurance
that the monthly dividend rate will remain at its current levels or that
the undistributed net investment income balance, if any, will be
sufficient to cover any shortfall in earnings to meet the current
dividend rate. The undistributed (overdistributed) net investment income
balance is inclusive of swap income (or loss), paydown gains and net
gain (or loss) from foreign currency transactions in accordance with
federal income tax treatment of these items.
Allianz Global Investors Fund Management LLC ("AGIFM"), an indirect,
wholly-owned subsidiary of Allianz Asset Management 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 market price, NAV, as
well as other information, are available at http://www.us.allianzgi.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 that the Fund will meet its stated objective. The
Fund's ability to pay dividends to common shareholders is subject to the
restrictions in its registration statement, By-laws and other governing
documents as well as the Investment Company Act of 1940. In making any
investment decision, individuals should utilize other information
sources and the advice of their own professional adviser.