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, 2014.
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At January 31,
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2014
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2013
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Net Assets (a)
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$377,322,568
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$386,705,632
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Common Shares Outstanding
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25,191,331
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25,071,327
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Net Asset Value ("NAV")
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$11.84
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$12.27
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Market Price
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$11.53
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$13.26
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Premium (Discount) to NAV
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(2.62)%
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8.07%
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Overdistributed Net Investment
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Income Per Common Share (c)
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$(0.1602)
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$(0.0643)
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Quarter ended January 31,
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2014
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2013
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Net Investment Income (b)
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$4,915,802
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$6,778,530
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Per Common Share (b)
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$0.20
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$0.27
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Net Realized and Change in Unrealized Gain (b)
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$7,755,116
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$10,219,914
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Per Common Share (b)
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$0.30
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$0.40
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Six Months ended January 31,
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2014
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2013
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Net Investment Income (b)
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$10,010,528
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$13,267,175
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Per Common Share (b)
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$0.40
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$0.53
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Net Realized and Change in Unrealized Gain (b)
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$7,855,528
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$31,822,494
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Per Common Share (b)
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$0.30
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$1.27
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(a)
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Net assets are inclusive of Preferred Shares of $78,975,000.
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(b)
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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, 2014 was $3,999,204 ($0.16 per common
share) and $6,714,171 ($0.27 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, 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.
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(c)
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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 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 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.
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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
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.
Copyright Business Wire 2014