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TMCNet:  PIMCO Strategic Global Government Fund Changes Fund Name, Investment Objectives, and Investment Policies [Professional Services Close - Up]

[December 20, 2013]

PIMCO Strategic Global Government Fund Changes Fund Name, Investment Objectives, and Investment Policies [Professional Services Close - Up]

(Professional Services Close - Up Via Acquire Media NewsEdge) PIMCO Strategic Global Government Fund, Inc. has announced that, effective on or about March 3, 2014, RCS will change its name to PIMCO Strategic Income Fund, Inc. The New York Stock Exchange ticker symbol for the Fund's common shares (RCS) will remain the same.

According to a release, in connection with the name change, the Fund will rescind its current non-fundamental policy to invest, under normal circumstances, at least 80 percent of its net assets and amounts borrowed for investment purposes in government securities. For purposes of the policy being rescinded, 'government securities' include bonds issued or guaranteed by the U.S. or foreign governments (including states, provinces, cantons and municipalities), by their agencies, authorities or instrumentalities, or by supranational entities, and synthetic instruments with economic characteristics similar to such securities. The Fund will replace this policy with a new non- fundamental policy to normally invest at least 80 percent of its net assets (plus any borrowings for investment purposes) in a combination of income-producing securities of non-corporate issuers, such as securities issued or guaranteed by the U.S. or foreign governments, mortgage-related and other asset-backed securities issued on a public or private basis, corporate debt obligations and other income-producing securities of varying maturities issued by U.S. or foreign (non-U.S.) corporations or other business entities, including emerging market issuers, and municipal securities.

The Fund will also rescind its current non-fundamental policy to invest, under normal circumstances, at least 80 percent of its net assets plus amounts borrowed for investment purposes in securities of issuers located in not fewer than three different countries, including the United States; its policy to seek to "maintain a minimum average dollar-weighted credit quality rating of securities in its portfolio of AA by S&P or Aa by Moody's, or their equivalent"; and its secondary investment objective, which is to seek to maintain volatility in the net asset value of the common stock comparable to that of high-quality, intermediate-term U.S. debt securities.

The changes to the Fund's name, its investment objectives, and its investment policies will take effect on or about March 3, 2014, following 60 days' notice to Fund shareholders.

The Board of Directors of the Fund approved the changes to the Fund's name, investment objectives and investment policies based on representations from Allianz Global Investors Fund Management (AGIFM), the Fund's investment manager, and Pacific Investment Management Company (PIMCO), the Fund's sub-adviser, that the changes will be in the best interests of the Fund and its shareholders. Following the changes described above, AGIFM and PIMCO believe that the Fund will be in a better position to pursue its investment objectives (as amended), will have additional flexibility to take advantage of opportunities in non-government-related fixed-income markets, and will not be required to invest any particular amount outside the United States or in a minimum number of countries.

To the extent the Fund increases its investments in non- government securities, including corporate and other income- producing securities, and lower-rated debt obligations, the Fund will be exposed to the risks associated with such investments to a greater extent. Investments in non-government securities will generally be subject to greater credit risk, issuer risk and counterparty risk than investments in government securities. Investments in lower rated and unrated securities present a greater risk of loss to principal and interest than higher rated securities. Debt securities of below investment grade quality are regarded as having predominantly speculative characteristics with respect to capacity to pay interest and to repay principal, and are commonly referred to as "high yield" securities or "junk bonds." Investments in asset-backed and mortgage-backed securities include additional risks that investors should be aware of including credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments.

Following the Effective Date, the Fund's primary investment objective will be to generate a level of income that is higher than that generated by high-quality, intermediate-term U.S. debt securities, which are defined as three- to ten-year instruments that are rated at least AA by S&P or Aa by Moody's. The Fund will also seek capital appreciation to the extent consistent with this objective. There can be no assurance that the Fund will meet its objective.

AGIFM is an indirect, wholly-owned subsidiary of Allianz Global Investors of America and a member of Munich-based Allianz Group. PIMCO is an affiliate of AGIFM.

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