PIMCO Income Strategy Fund Reports Results for the Fiscal Quarter and Six Months Ended January 31, 2014

Business Wire

NEW YORK--(BUSINESS WIRE)--

PIMCO Income Strategy Fund (the "Fund") (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.

     

At January 31,

2014

   

2013

Net Assets (a) $377,322,568 $386,705,632
Common Shares Outstanding 25,191,331 25,071,327
Net Asset Value ("NAV") $11.84 $12.27
Market Price $11.53 $13.26
Premium (Discount) to NAV (2.62)% 8.07%
Overdistributed Net Investment
Income Per Common Share (c) $(0.1602) $(0.0643)
 
 

Quarter ended January 31,

2014

2013

Net Investment Income (b) $4,915,802 $6,778,530
Per Common Share (b) $0.20 $0.27
Net Realized and Change in Unrealized Gain (b) $7,755,116 $10,219,914
Per Common Share (b) $0.30 $0.40
 
 

Six Months ended January 31,

2014

2013

Net Investment Income (b) $10,010,528 $13,267,175
Per Common Share (b) $0.40 $0.53
Net Realized and Change in Unrealized Gain (b) $7,855,528 $31,822,494
Per Common Share (b) $0.30 $1.27

(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, 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.

 

(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 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.

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.

Contact:
For Information on PIMCO Closed-End Funds:
Financial Advisors: 800-628-1237
Shareholders: 800-254-5197
Media Relations: 212-739-3501

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