PIMCO Dynamic Income Fund Announces Closing of its Initial Public Offering 

 

 

5/30/2012 

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

PIMCO Dynamic Income Fund Announces Closing of its Initial Public Offering

NEW YORK, May 30, 2012 (BUSINESS WIRE) – PIMCO Dynamic Income Fund (the “Fund”) today announced it has completed the closing of its initial public offering. The Fund raised $1,015,000,000 in its initial public offering of 40,600,000 common shares (before deduction of the sales load and offering expenses and exclusive of the underwriters’ option to purchase additional common shares). The Fund’s shares are listed on the New York Stock Exchange under the symbol “PDI.” The Fund is a non-diversified closed-end fund.

The Fund seeks current income as a primary objective and capital appreciation as a secondary objective.  The Fund seeks to achieve its investment objectives by utilizing a dynamic asset allocation strategy among multiple fixed-income sectors, including non-agency residential and commercial mortgage-backed securities (and any other mortgage-related or asset-backed securities), investment-grade corporate bonds and below investment-grade securities (commonly referred to as “high yield” securities or “junk bonds”) and certain other income-producing securities of U.S. and foreign issuers. As a matter of fundamental policy, the Fund will normally invest at least 25% of its total assets in privately-issued (commonly known as “non-agency”) mortgage-related securities. It is anticipated the Fund will utilize leverage as part of its investment strategy.

Pacific Investment Management Company LLC (“PIMCO”), the Fund’s sub-adviser, employs an active approach to allocation among multiple fixed-income sectors based on, among other things, market conditions, valuation assessments and economic outlook, credit market trends and other economic factors. PIMCO also relies heavily on its independent credit analysis of specific securities and issuers.

Allianz Global Investors Fund Management LLC (“AGIFM”) is the Fund’s investment manager, responsible for managing the investment activities of the Fund and the Fund’s business affairs and other administrative matters. AGIFM is an indirect, wholly-owned subsidiary of Allianz Asset Management of America L.P. and is a member of Munich-based Allianz Group. PIMCO, an AGIFM affiliate, is the Fund’s sub-adviser, responsible for managing the Fund’s portfolio investments.

The lead managers of the underwriting syndicate were Morgan Stanley, Citigroup, BofA Merrill Lynch, UBS Investment Bank and Wells Fargo Securities.

The Fund’s daily New York Stock Exchange closing prices, net asset values per share, as well as other information, including updated portfolio statistics and performance will be available at www.allianzinvestors.com or by calling the Fund’s shareholder servicing agent at (800) 254-5197.

The Fund is a newly organized registered closed-end investment company with no operating history. Shares of closed-end investment companies, such as the Fund, usually trade on a national stock exchange, and these shares frequently trade at a discount to their net asset value, which may increase investors’ risk of loss.

Because of the risks associated with investing in high yield securities, foreign and emerging market securities (and related exposure to foreign currencies) and mortgage-related and other asset-backed securities, and using leverage, an investment in the Fund should be considered speculative, involves a high degree of risk and should not constitute a complete investment program. Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing.

The prospectus, which contains this and other important information about the Fund, should be read carefully before investing. There is no assurance that the Fund will achieve its investment objectives or be able to structure its investment portfolio as anticipated.

This document is not an offer to sell securities or the solicitation of an offer to buy securities, nor shall there be any sale or offer of these securities, in any jurisdiction where such sale or offer is not permitted.

Investing in the Fund involves risk. Principal loss is possible.

The Fund is a "non-diversified" investment company and therefore may invest a greater percentage of its assets in the securities of a single issuer or a limited number of issuers than funds that are "diversified." Accordingly, the Fund is more susceptible to risks associated with a single economic, political or regulatory occurrence than a diversified fund might be.

Investments in debt securities typically decline in value when interest rates rise. This risk is usually greater for longer-term debt securities. 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. The Fund may invest in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are greater for investments in emerging markets. 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.”

Past performance is not indicative of future results.

This material may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates and information about possible or future results related to the Fund, market or regulatory developments. The views expressed herein are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed herein are subject to change at any time based upon economic, market, or other conditions and the Fund undertakes no obligation to update the views expressed herein. While we have gathered this information from sources believed to be reliable, the Fund cannot guarantee the accuracy of the information provided. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed herein (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Fund’s trading intent. Information included herein is not an indication of the Fund’s future portfolio composition.

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