NEW YORK, Aug. 06, 2021 (GLOBE NEWSWIRE) — At a joint special meeting earlier today, shareholders of PIMCO Dynamic Income Fund and PIMCO Income Opportunity Fund approved the proposals necessary for PIMCO Dynamic Credit and Mortgage Income Fund and PKO to reorganize with and into PDI. (No action was needed from shareholders of PCI.)
In connection with the reorganizations, PIMCO has agreed to a 75% management fee waiver for PKO that will be in effect for two months following today’s approvals. In addition, PDI’s annual management fee rate will decrease from 1.15% to 1.10% of its average daily total managed assets effective as of the date of the closing of the reorganization of PCI into PDI.
In light of the existing similarities in the Funds’ investment strategies and holdings, PIMCO generally does not expect to restructure PKO’s or PCI’s portfolios or reposition their holdings to a significant extent prior to the reorganizations in order to align with PDI’s investment strategies. However, as of today through the closing of both reorganizations, PKO and PCI will be in a “transition period” during which PIMCO may need to reposition the assets of PKO and PCI to align with the investment strategies of PDI and prepare to transfer the assets of PKO and PCI. During this time, PKO and PCI may not be pursuing their investment objective and strategies, and limitations on permissible investments and investment restrictions will not apply.
The reorganizations are currently expected to occur in approximately two to three months (and in any event not earlier than in two months), subject to PIMCO’s market outlook and operational considerations and the satisfaction of applicable regulatory requirements and customary closing conditions.
About PIMCO
PIMCO was founded in 1971 in Newport Beach, California and is one of the world’s premier fixed income investment managers. Today we have offices across the globe and 3,000+ professionals united by a single purpose: creating opportunities for investors in every environment. PIMCO is owned by Allianz S.E., a leading global diversified financial services provider.
