The Boards of Trustees of each of the funds (the "Funds”) named below
announced today that the independent Trustees of each Board have
rejected the demands contained in letters from a law firm on behalf of
certain purported common shareholders of the Funds.
The named Funds are:
-
PIMCO Corporate Income Fund (NYSE:PCN)
-
PIMCO Corporate Opportunity Fund (NYSE:PTY)
-
PIMCO High Income Fund (NYSE:PHK)
-
PIMCO Income Strategy Fund
(formerly, PIMCO Floating Rate Income
Fund) (NYSE:PFL)
-
PIMCO Income Strategy Fund II (NYSE:PFN)
(formerly, PIMCO
Floating Rate Strategy Fund)
-
PIMCO Municipal Income Fund II (NYSE:PML)
-
AGIC Convertible & Income Fund (NYSE:NCV)
(formerly,
Nicholas-Applegate Convertible & Income Fund)
-
AGIC Convertible & Income Fund II (NYSE:NCZ)
(formerly,
Nicholas-Applegate Convertible & Income Fund II)
As previously announced in press releases dated July 2, 2010 and July 8,
2010, each Fund received one or more demand letters that alleged that
Allianz Global Investors Fund Management LLC ("AGIFM”), investment
manager to each Fund, and certain officers and Trustees of the Funds,
breached their fiduciary duties in connection with the redemption of a
portion of the Funds’ auction rate preferred shares ("ARPS”) in 2008 and
2009. The letters demanded that the Boards of Trustees take certain
action to remedy those alleged breaches. After conducting an extensive
investigation, the independent Trustees of the Funds rejected the
demands made in the demand letters.
AGIFM, an indirect, wholly-owned subsidiary of Allianz Global Investors
of America L.P., serves as the Funds' investment manager and is a member
of Munich-based Allianz Group. Pacific Investment Management Company LLC
("PIMCO”) and Allianz Global Investors Capital LLC ("AGIC”), AGIFM
affiliates, serve as the Funds’ sub-advisers. Effective August 25, 2010,
AGIC became the investment sub-adviser for NCV and NCZ. The Funds' New
York Stock Exchange closing prices, net asset values per share, as well
as other information, including updated portfolio statistics and
performance, are 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.
