UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number

811-21311

 

PIMCO High Income Fund

(Exact name of registrant as specified in charter)

 

1633 Broadway New York, New York

 

10019

(Address of principal executive offices)

 

(Zip code)

 

Lawrence G. Altadonna – 1633 Broadway New York, New York 10019

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

212-739-3371

 

 

Date of fiscal year end:

March 31, 2013

 

 

Date of reporting period:

December 31, 2012

 

 



 

Item 1. Schedule of Investments

 

PIMCO High Income Fund Schedule of Investments

December 31, 2012 (unaudited)

 

Principal
Amount
(000s)

 

 

 

Value*

 

CORPORATE BONDS & NOTES - 57.4%

 

 

 

Airlines - 1.3%

 

 

 

 

 

American Airlines Pass-Through Trust,

 

 

 

$4,789

 

10.18%, 1/2/13 (b)(d)(e)

 

$5,411,262

 

858

 

10.375%, 1/2/21

 

909,307

 

10,236

 

United Air Lines Pass-Through Trust, 10.40%, 5/1/18

 

11,783,445

 

 

 

 

 

18,104,014

 

Auto Manufacturers - 2.9%

 

 

 

 

 

Ford Motor Co.,

 

 

 

5,000

 

7.125%, 11/15/25

 

5,800,000

 

5,900

 

7.50%, 8/1/26

 

7,035,750

 

24,131

 

7.70%, 5/15/97

 

27,841,141

 

 

 

 

 

40,676,891

 

Banking - 24.8%

 

 

 

5,000

 

AgFirst Farm Credit Bank, 7.30%, 1/31/13 (a)(b)(c)(f)(h) (acquisition cost - $4,500,000; purchased 12/7/10)

 

4,999,600

 

 

 

Ally Financial, Inc.,

 

 

 

97

 

5.85%, 5/15/13

 

97,184

 

362

 

5.90%, 1/15/19 - 2/15/19

 

357,060

 

2,960

 

6.00%, 2/15/19 - 9/15/19

 

2,928,517

 

652

 

6.10%, 9/15/19

 

641,657

 

241

 

6.125%, 10/15/19

 

239,475

 

1,620

 

6.15%, 3/15/16

 

1,622,356

 

2,478

 

6.20%, 3/15/16 - 4/15/19

 

2,476,276

 

1,433

 

6.25%, 3/15/13 - 7/15/19

 

1,407,914

 

2,705

 

6.30%, 3/15/13 - 3/15/16

 

2,702,922

 

1,409

 

6.35%, 2/15/16 - 7/15/19

 

1,402,275

 

3,364

 

6.40%, 3/15/13 - 11/15/19

 

3,357,069

 

209

 

6.45%, 2/15/13

 

209,664

 

7,772

 

6.50%, 2/15/13 - 2/15/20

 

7,740,108

 

1,272

 

6.55%, 10/15/16 - 12/15/19

 

1,263,270

 

2,128

 

6.60%, 8/15/16 - 6/15/19

 

2,120,086

 

3,055

 

6.65%, 4/15/16 - 10/15/18

 

3,024,146

 

1,126

 

6.70%, 5/15/14 - 12/15/19

 

1,110,191

 

8,361

 

6.75%, 4/15/13 - 6/15/19

 

8,292,182

 

1,168

 

6.80%, 4/15/13 - 10/15/18

 

1,159,132

 

4,033

 

6.85%, 4/15/16 - 7/15/16

 

4,016,736

 

848

 

6.875%, 8/15/16 - 7/15/18

 

842,177

 

243

 

6.90%, 6/15/17 - 8/15/18

 

241,555

 

30

 

6.95%, 6/15/17

 

29,811

 

7,826

 

7.00%, 1/15/13 - 6/15/22

 

7,749,089

 

515

 

7.05%, 3/15/18 - 4/15/18

 

511,761

 

3,012

 

7.10%, 1/15/13

 

3,016,777

 

253

 

7.125%, 10/15/17

 

251,827

 

1,632

 

7.15%, 6/15/16 - 9/15/18

 

1,611,271

 

43

 

7.20%, 10/15/17

 

42,662

 

4,393

 

7.25%, 6/15/16 - 9/15/18

 

4,360,160

 

80

 

7.30%, 1/15/18

 

79,302

 

257

 

7.35%, 1/15/17 - 4/15/18

 

252,523

 

366

 

7.375%, 11/15/16 - 4/15/18

 

364,482

 

4,618

 

7.50%, 5/15/16 - 12/15/17

 

4,602,328

 

1,324

 

7.55%, 5/15/16

 

1,311,480

 

276

 

8.00%, 10/15/17 - 11/15/17

 

275,696

 

20

 

8.125%, 11/15/17

 

19,948

 

25

 

8.25%, 3/15/17

 

24,996

 

35

 

8.65%, 8/15/15

 

35,047

 

121

 

9.00%, 7/15/20

 

124,716

 

£38,655

 

Barclays Bank PLC, 14.00%, 6/15/19 (f)

 

84,166,631

 

 

 

BPCE S.A. (f),

 

 

 

€20,000

 

9.00%, 3/17/15

 

28,115,585

 

4,106

 

9.25%, 4/22/15

 

5,729,222

 

$6,000

 

12.50%, 9/30/19 (a)(c)

 

6,969,732

 

576

 

12.50%, 9/30/19

 

669,094

 

 

 

Credit Agricole S.A. (f),

 

 

 

£1,000

 

8.125%, 10/26/19

 

1,686,166

 

$3,100

 

8.375%, 10/13/19 (a)(c)

 

3,301,500

 

 

 

LBG Capital No. 1 PLC,

 

 

 

€1,885

 

7.375%, 3/12/20

 

2,545,451

 

£900

 

7.588%, 5/12/20

 

1,538,760

 

3,400

 

7.869%, 8/25/20

 

5,901,464

 

$2,000

 

8.50%, 12/17/21 (a)(b)(c)(f)(h) (acquisition cost - $1,275,174; purchased 10/22/09)

 

2,085,000

 

 



 

PIMCO High Income Schedule of Investments

December 31, 2012 (unaudited) (continued)

 

Principal
Amount
(000s)

 

 

 

Value*

 

 

 

LBG Capital No. 2 PLC,

 

 

 

£284

 

9.00%, 12/15/19

 

$498,385

 

5,500

 

9.125%, 7/15/20

 

9,622,250

 

850

 

11.25%, 9/14/23

 

1,561,665

 

$47,500

 

Lloyds TSB Bank PLC, 12.00%, 12/16/24 (a)(c)(f)

 

55,034,735

 

8,800

 

Royal Bank of Scotland Group PLC, 7.648%, 9/30/31 (f)

 

8,976,000

 

2,000

 

Royal Bank of Scotland PLC, 9.50%, 3/16/22 (j)

 

2,358,758

 

£21,600

 

Santander Finance Preferred S.A. Unipersonal, 11.30%, 7/27/14 (f)

 

37,200,423

 

6,300

 

Santander Issuances S.A. Unipersonal, 7.30%, 7/27/19 (converts to FRN on 9/27/14)

 

10,346,609

 

 

 

 

 

345,222,858

 

Chemicals - 0.4%

 

 

 

$6,000

 

Perstorp Holding AB, 8.75%, 5/15/17 (a)(c)

 

6,210,000

 

 

 

 

 

Coal - 1.1%

 

 

 

2,720

 

Murray Energy Corp., 10.25%, 10/15/15 (a)(c)

 

2,652,000

 

12,531

 

Westmoreland Coal Co., 10.75%, 2/1/18

 

12,656,310

 

 

 

 

 

15,308,310

 

Diversified Financial Services - 10.9%

 

 

 

25,710

 

AGFC Capital Trust I, 6.00%, 1/15/67 (converts to FRN on 1/15/17) (a)(c)

 

16,004,475

 

13,002

 

ILFC E-Capital Trust I, 1.856%, 12/21/65 (a)(c)(j)

 

9,929,628

 

28,430

 

ILFC E-Capital Trust II, 6.25%, 12/21/65 (converts to FRN on 12/21/15) (a)(c)

 

24,449,800

 

18,000

 

International Lease Finance Corp., 6.98%, 10/15/17 (e)(j)

 

17,688,979

 

 

 

Springleaf Finance Corp.,

 

 

 

10,000

 

5.40%, 12/1/15

 

9,500,000

 

9,100

 

6.90%, 12/15/17

 

8,190,000

 

385,359

 

Toll Road Investors Partnership II L.P., zero coupon, 2/15/45 (NPFGC) (a)(b)(c)(h) (acquisition cost - $63,665,029; purchased 11/20/12 - 12/18/12)

 

65,410,893

 

 

 

 

 

151,173,775

 

Electric Utilities - 4.9%

 

 

 

7,300

 

AES Andres Dominicana Ltd., 9.50%, 11/12/20 (a)(c)

 

8,150,450

 

2,162

 

Ameren Energy Generating Co., 7.95%, 6/1/32

 

1,545,830

 

23,990

 

Dynegy Roseton LLC / Dynegy Danskammer LLC Pass-Through Trust, 7.67%, 11/8/16, Ser. B (b)(d)

 

1,139,525

 

4,455

 

Energy Future Holdings Corp., 9.75%, 10/15/19

 

4,945,050

 

5,445

 

Energy Future Intermediate Holding Co. LLC, 9.75%, 10/15/19

 

6,043,950

 

420

 

GenOn REMA LLC, 9.237%, 7/2/17

 

463,144

 

43,895

 

NSG Holdings LLC, 7.75%, 12/15/25 (a)(c)

 

45,431,325

 

 

 

 

 

67,719,274

 

Entertainment - 0.0%

 

 

 

550

 

Speedway Motorsports, Inc., 8.75%, 6/1/16

 

590,563

 

 

 

 

 

Household Products/Wares - 0.5%

 

 

 

6,300

 

Reynolds Group Issuer, Inc., 9.00%, 4/15/19

 

6,583,500

 

 

 

 

 

Insurance - 8.6%

 

 

 

 

 

American International Group, Inc.,

 

 

 

€8,200

 

8.00%, 5/22/68 (converts to FRN on 5/22/18)

 

12,546,767

 

£28,650

 

8.625%, 5/22/68 (converts to FRN on 5/22/18)

 

56,937,543

 

6,650

 

8.625%, 5/22/68 (converts to FRN on 5/22/18) (a)(b)(c)(h) (acquisition cost - $9,722,734; purchased 8/10/10 - 5/4/12)

 

13,215,869

 

€23,300

 

Cloverie PLC for Zurich Insurance Co., Ltd., 12.00%, 7/15/14 (e)(f)

 

34,728,055

 

$2,000

 

Pacific Life Insurance Co., 7.90%, 12/30/23 (a)(c)

 

2,498,454

 

 

 

 

 

119,926,688

 

Oil & Gas - 0.1%

 

 

 

1,000

 

Cie Generale de Geophysique - Veritas, 7.75%, 5/15/17

 

1,045,000

 

 

 

 

 

Real Estate - 0.6%

 

 

 

5,041

 

Midwest Family Housing LLC, 6.631%, 1/1/51 (CIFG) (a)(b)(c)(e)(h) (acquisition cost - $4,052,645; purchased 9/25/12)

 

4,019,447

 

4,807

 

Tri-Command Military Housing LLC, 5.383%, 2/15/48 (NPFGC) (a)(b)(c)(h) (acquisition cost - $4,055,093; purchased 9/19/12)

 

4,233,209

 

 

 

 

 

8,252,656

 

Telecommunications - 1.3%

 

 

 

1,122

 

CenturyLink, Inc., 7.20%, 12/1/25

 

1,186,306

 

15,200

 

Mountain States Telephone & Telegraph Co., 7.375%, 5/1/30

 

16,440,127

 

 

 

 

 

17,626,433

 

Total Corporate Bonds & Notes (cost-$663,903,159)

 

798,439,962

 

 



 

PIMCO High Income Schedule of Investments

December 31, 2012 (unaudited) (continued)

 

Principal
Amount
(000s)

 

 

 

Value*

 

MORTGAGE-BACKED SECURITIES - 12.8%

 

 

 

$1,863

 

American Home Mortgage Assets LLC, 6.25%, 6/25/37 CMO

 

$1,131,442

 

9,139

 

Banc of America Alternative Loan Trust, 6.00%, 3/25/36 CMO

 

6,622,980

 

 

 

Banc of America Mortgage Trust, CMO,

 

 

 

66

 

3.006%, 2/25/36 (j)

 

55,303

 

1,596

 

6.00%, 3/25/37

 

1,498,790

 

 

 

BCAP LLC Trust, CMO (a)(c)(j),

 

 

 

4,700

 

5.43%, 3/26/37

 

653,300

 

2,088

 

11.519%, 6/26/36

 

398,758

 

 

 

Bear Stearns Adjustable Rate Mortgage Trust, CMO (j),

 

 

 

12,728

 

2.96%, 8/25/35

 

10,079,058

 

819

 

3.099%, 5/25/47

 

647,676

 

477

 

5.262%, 11/25/34

 

459,057

 

904

 

Bear Stearns Alt-A Trust, 3.152%, 11/25/34 CMO (j)

 

733,416

 

 

 

Chase Mortgage Finance Corp., CMO,

 

 

 

59

 

2.912%, 12/25/35 (j)

 

52,014

 

24

 

5.50%, 5/25/36

 

22,966

 

326

 

5.769%, 9/25/36 (j)

 

308,637

 

 

 

Citigroup Mortgage Loan Trust, Inc., CMO (j),

 

 

 

207

 

2.927%, 7/25/46

 

163,414

 

396

 

2.934%, 7/25/37

 

312,682

 

1,493

 

3.091%, 9/25/37

 

1,135,065

 

3,247

 

5.57%, 8/25/37

 

2,373,304

 

3,833

 

5.727%, 3/25/37

 

3,608,188

 

 

 

Countrywide Alternative Loan Trust, CMO,

 

 

 

673

 

2.92%, 2/25/37 (j)

 

529,313

 

3,070

 

4.249%, 7/25/46 (j)

 

2,300,402

 

1,507

 

5.264%, 7/25/21 (j)

 

1,420,274

 

647

 

5.50%, 3/25/36

 

475,325

 

1,729

 

6.00%, 2/25/35

 

1,545,146

 

507

 

6.00%, 11/25/36

 

364,954

 

5,202

 

6.00%, 1/25/37

 

4,334,619

 

8,430

 

6.00%, 2/25/37

 

6,420,650

 

4,074

 

6.00%, 2/25/47

 

3,061,134

 

284

 

6.50%, 6/25/36

 

192,921

 

 

 

Countrywide Home Loan Mortgage Pass-Through Trust, CMO,

 

 

 

1,186

 

2.857%, 9/20/36 (j)

 

721,797

 

131

 

3.09%, 9/25/47 (j)

 

104,710

 

3,689

 

5.50%, 10/25/35

 

3,678,262

 

4,512

 

5.75%, 3/25/37

 

3,935,654

 

3,510

 

5.75%, 6/25/37

 

3,226,385

 

1,292

 

6.00%, 5/25/36

 

1,183,629

 

809

 

6.00%, 4/25/37

 

748,170

 

12,104

 

6.00%, 5/25/37

 

11,025,173

 

402

 

6.25%, 9/25/36

 

347,802

 

2,680

 

Credit Suisse Mortgage Capital Certificates, 6.00%, 2/25/37 CMO

 

2,321,679

 

176

 

First Horizon Mortgage Pass-Through Trust, 2.567%, 5/25/37 CMO (j)

 

131,296

 

 

 

GSR Mortgage Loan Trust, CMO,

 

 

 

1,122

 

5.50%, 5/25/36

 

1,000,618

 

1,198

 

6.00%, 7/25/37

 

1,116,475

 

 

 

Harborview Mortgage Loan Trust, CMO (j),

 

 

 

113

 

5.262%, 8/19/36

 

91,548

 

1,073

 

5.75%, 8/19/36

 

751,205

 

15,591

 

JPMorgan Alternative Loan Trust, 5.65%, 3/25/37 CMO (j)

 

10,666,603

 

 

 

JPMorgan Mortgage Trust, CMO,

 

 

 

714

 

5.575%, 1/25/37 (j)

 

588,400

 

902

 

5.75%, 1/25/36

 

876,944

 

480

 

Merrill Lynch Alternative Note Asset, 3.048%, 6/25/37 CMO (j)

 

301,934

 

297

 

Merrill Lynch Mortgage-Backed Securities Trust, 5.018%, 4/25/37 CMO (j)

 

233,080

 

 

 

Residential Asset Securitization Trust, CMO,

 

 

 

1,809

 

6.00%, 9/25/36

 

1,157,798

 

5,838

 

6.00%, 5/25/37

 

5,275,788

 

1,231

 

6.25%, 10/25/36

 

891,508

 

8,336

 

6.25%, 9/25/37

 

5,879,757

 

573

 

6.50%, 8/25/36

 

391,631

 

4,886

 

Residential Funding Mortgage Securities I Trust, 6.25%, 8/25/36 CMO

 

4,453,482

 

 

 

Sequoia Mortgage Trust, CMO (j),

 

 

 

144

 

2.728%, 1/20/47

 

115,874

 

1,866

 

5.294%, 7/20/37

 

1,584,960

 

 

 

Structured Adjustable Rate Mortgage Loan Trust, CMO (j),

 

 

 

1,620

 

5.163%, 4/25/47

 

1,281,330

 

407

 

5.266%, 1/25/36

 

301,563

 

9,942

 

5.458%, 7/25/36

 

6,603,971

 

7,509

 

5.612%, 11/25/36

 

5,602,773

 

 

 

Suntrust Adjustable Rate Mortgage Loan Trust, CMO (j),

 

 

 

2,506

 

5.478%, 4/25/37

 

2,154,899

 

1,976

 

5.808%, 2/25/37

 

1,617,337

 

 

 

WaMu Mortgage Pass-Through Certificates, CMO (j),

 

 

 

255

 

2.129%, 1/25/37

 

198,800

 

 



 

PIMCO High Income Schedule of Investments

December 31, 2012 (unaudited) (continued)

 

Principal
Amount
(000s)

 

 

 

Value*

 

$218

 

2.403%, 4/25/37

 

$163,731

 

2,014

 

2.423%, 11/25/36

 

1,624,194

 

163

 

2.426%, 12/25/36

 

128,656

 

463

 

2.496%, 2/25/37

 

340,169

 

1,049

 

2.685%, 2/25/37

 

842,230

 

220

 

2.752%, 3/25/37

 

195,653

 

413

 

4.738%, 5/25/37

 

319,936

 

556

 

4.999%, 2/25/37

 

456,091

 

12,353

 

5.093%, 7/25/37

 

11,441,941

 

4,007

 

6.087%, 10/25/36

 

3,532,556

 

 

 

Washington Mutual Alternative Mortgage Pass-Through Certificates, CMO,

 

 

 

10,510

 

6.00%, 6/25/37

 

8,516,237

 

6,877

 

6.50%, 3/25/36

 

4,008,983

 

17,956

 

Wells Fargo Alternative Loan Trust, 6.25%, 7/25/37 CMO

 

15,165,754

 

231

 

Wells Fargo Mortgage-Backed Securities Trust, 3.045%, 9/25/36 CMO (j)

 

198,233

 

Total Mortgage-Backed Securities (cost-$163,824,985)

 

178,397,987

 

 

Shares

 

 

 

 

 

PREFERRED STOCK - 6.3%

 

 

 

Banking - 4.1%

 

 

 

 

 

Ally Financial, Inc. (f),

 

 

 

3,000

 

7.00%, 1/30/13 (a)(c)

 

2,946,657

 

150,000

 

8.50%, 5/15/16, Ser. A (i)

 

3,940,500

 

150,000

 

Bank of America Corp., 8.20%, 5/1/13, Ser. H (f)

 

3,840,000

 

758,600

 

CoBank Acb, 11.00%, 7/1/13, Ser. C (a)(b)(c)(f)(h) (acquisition cost - $42,106,600; purchased 8/23/10 - 2/1/11)

 

40,167,870

 

200,000

 

GMAC Capital Trust I, 8.125%, 2/15/40, Ser. 2 (i)

 

5,330,000

 

 

 

 

 

56,225,027

 

Diversified Financial Services - 0.9%

 

 

 

10,000

 

Farm Credit Bank, 10.00%, 12/15/20, Ser. 1 (f)

 

12,484,375

 

 

 

 

 

Real Estate Investment Trust - 1.3%

 

 

 

14,470

 

Sovereign Real Estate Investment Trust, 12.00%, 5/16/20 (a)(b)(c)(f)(h) (acquisition cost - $15,965,050; purchased 12/3/09 - 6/6/12)

 

18,528,560

 

Total Preferred Stock (cost-$82,889,150)

 

87,237,962

 

 

Principal
Amount
(000s)

 

 

 

 

 

ASSET-BACKED SECURITIES - 5.0%

 

 

 

 

 

Countrywide Asset-Backed Certificates,

 

 

 

$3,000

 

5.595%, 8/25/35

 

2,522,189

 

13,700

 

5.884%, 7/25/36

 

7,056,712

 

 

 

Greenpoint Manufactured Housing (j),

 

 

 

8,388

 

8.14%, 3/20/30

 

8,132,263

 

33,256

 

8.45%, 6/20/31

 

31,649,089

 

 

 

GSAA Trust,

 

 

 

637

 

0.51%, 3/25/37 (j)

 

357,992

 

5,401

 

5.80%, 3/25/37

 

3,233,744

 

17,255

 

Indymac Residential Asset-Backed Trust, 0.37%, 7/25/37 (j)

 

9,602,935

 

6,713

 

JPMorgan Mortgage Acquisition Corp., 5.266%, 1/25/37

 

5,470,265

 

2,460

 

Morgan Stanley Mortgage Loan Trust, 6.25%, 7/25/47 (j)

 

1,824,475

 

444

 

Washington Mutual Asset-Backed Certificates, 0.36%, 5/25/36 (j)

 

243,633

 

Total Asset-Backed Securities (cost-$72,162,390)

 

70,093,297

 

 

 

 

 

SHORT-TERM INVESTMENTS - 18.5%

 

 

 

Repurchase Agreements - 17.8%

 

 

 

4,100

 

Barclays Capital, Inc.,
dated 12/31/12, 0.23%, due 1/2/13, proceeds $4,100,052; collateralized by U.S. Treasury Inflation Indexed Bonds, 3.875%, due 4/15/29, valued at $4,168,945 including accrued interest

 

4,100,000

 

50,000

 

Citigroup Global Markets, Inc.,
dated 12/31/12, 0.25%, due 1/3/13, proceeds $50,000,347; collateralized by U.S. Treasury Notes, 0.25%, due 8/15/15, valued at $51,045,423 including accrued interest

 

50,000,000

 

193,700

 

RBC Capital Markets LLC,
dated 12/31/12, 0.25%, due 1/2/13, proceeds $193,702,690; collateralized by U.S. Treasury Notes, 0.75% - 1.50%, due 7/31/16 — 12/31/17, valued at $197,668,555 including accrued interest

 

193,700,000

 

138

 

State Street Bank and Trust Co.,
dated 12/31/12, 0.01%, due 1/2/13, proceeds $138,000; collateralized by Freddie Mac, 2.10%, due 10/17/22, valued at $144,495 including accrued interest

 

138,000

 

Total Repurchase Agreements (cost-$247,938,000)

 

247,938,000

 

 

 

 

 

U.S. Treasury Obligation (g)(k)- 0.7%

 

 

 

10,072

 

U.S. Treasury Bills, 0.004%-0.066%, 1/3/13-1/17/13 (cost-$10,071,942)

 

10,071,942

 

Total Short-Term Investments (cost-$258,009,942)

 

258,009,942

 

 

 

 

 

Total Investments (cost-$1,240,789,626) (l)-100.0%

 

$1,392,179,150

 

 



 


Notes to Schedule of Investments:

 

*

 

Portfolio securities and other financial instruments for which market quotations are readily available are stated at market value. Market value is generally determined on the basis of last reported sales prices, or if no sales are reported, on the basis of quotes obtained from a quotation reporting system, established market makers, or independent pricing services. The Fund’s investments are valued daily using prices supplied by an independent pricing service or dealer quotations, or by using the last sale price on the exchange that is the primary market for such securities, or the mean between the last quoted bid and ask price. Independent pricing services use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Centrally cleared swaps are valued at the price determined by the relevant exchange.

 

The Board of Trustees (the “Board”) has adopted procedures for valuing portfolio securities and other financial derivative instruments in circumstances where market quotes are not readily available, and has delegated the responsibility for applying the valuation methods to Allianz Global Investors Fund Management LLC (“the Investment Manager”) and Pacific Investment Management Company LLC (the “Sub-Adviser”), an affiliate of the Investment Manager. The Fund’s Valuation Committee was established by the Board to oversee the implementation of the Fund’s valuation methods and to make fair value determinations on behalf of the Board, as instructed. The Sub-Adviser monitors the continued appropriateness of methods applied and determines if adjustments should be made in light of market changes, events affecting the issuer, or other factors. If the Sub-Adviser determines that a valuation method may no longer be appropriate, another valuation method may be selected, or the Valuation Committee will be convened to consider the matter and take any appropriate action in accordance with procedures set forth by the Board. The Board shall review the appropriateness of the valuation methods and these methods may be amended or supplemented from time to time by the Valuation Committee.

 

Benchmark pricing procedures are used as the basis for setting the base price of a fixed-income security and for subsequently adjusting the price proportionally to market value changes of a pre-determined security deemed to be comparable in duration, generally a U.S. Treasury or sovereign note based on country of issuance. The base price may be a broker-dealer quote, transaction price, or an internal value as derived by analysis of market data. The base price of the security may be reset on a periodic basis based on the availability of market data and procedures approved by the Valuation Committee. The validity of the fair value is reviewed by the Sub-Adviser on a periodic basis and may be amended as the availability of market data indicates a material change.

 

Short-term securities maturing in 60 days or less are valued at amortized cost, if their original term to maturity was 60 days or less, or by amortizing their value on the 61st day prior to maturity, if the original term to maturity exceeded 60 days.

 

Investments initially valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from pricing services. As a result, the net asset value (“NAV”) of the Fund’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of securities traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the New York Stock Exchange (“NYSE”) is closed.

 

The prices used by the Fund to value securities may differ from the value that would be realized if the securities were sold, and these differences could be material. The Fund’s NAV is normally determined as of the close of regular trading (normally, 4:00 p.m. Eastern time) on the NYSE on each day the NYSE is open for business.

 

 

 

(a)

 

Private Placement—Restricted as to resale and may not have a readily available market. Securities with an aggregate value of $337,291,262, representing 24.2% of total investments.

 

 

 

(b)

 

Illiquid.

 

 

 

(c)

 

144A—Exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, typically only to qualified institutional buyers. Unless otherwise indicated, these securities are not considered to be illiquid.

 

 

 

(d)

 

In default.

 

 

 

(e)

 

Fair-Valued—Securities with an aggregate value of $61,847,743, representing 4.4% of total investments.

 

 

 

(f)

 

Perpetual maturity. The date shown, if any, is the next call date. For Corporate Bonds & Notes the interest rate is fixed until the first call date and variable thereafter.

 

 

 

(g)

 

All or partial amount segregated for the benefit of the counterparty as collateral for derivatives.

 

 

 

(h)

 

Restricted. The aggregate acquisition cost of such securities is $145,342,325. The aggregate market value is $152,660,448, representing 11.0% of total investments.

 

 

 

(i)

 

Dividend rate fixed until the first call date and variable thereafter.

 

 

 

(j)

 

Variable or Floating Rate Security—Securities with an interest rate that changes periodically. The interest rate disclosed reflects the rate in effect on December 31, 2012.

 

 

 

(k)

 

Rates reflect the effective yields at purchase date.

 

 

 

(l)

 

At December 31, 2012, the cost basis of portfolio securities for federal income tax purposes was $1,241,757,240. Gross unrealized appreciation was $165,109,098; gross unrealized depreciation was $14,687,188; and net unrealized appreciation was $150,421,910. The difference between book and tax cost was attributable to wash sale loss deferrals.

 



 

(m)  Credit default swap agreements outstanding at December 31, 2012:

 

OTC sell protection swap agreements (1):

 

Swap Counterparty/
Referenced Debt Issuer

 

Notional
Amount
(000s)(3)

 

Credit
Spread (2)

 

Termination
Date

 

Payments
Received

 

Market
Value(4)

 

Upfront
Premiums
Received

 

Unrealized
Depreciation

 

Barclays Bank:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Argentine Republic Government International Bond

 

$15,000

 

 

6/20/13

 

5.00

%

$(1,097,917

)

$(169,109

)

$(928,808

)

BNP Paribas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Venezuela Government International Bond

 

30,000

 

6.41

%

12/20/17

 

5.00

%

(1,686,450

)

(1,480,517

)

(205,933

)

Deutsche Bank:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Venezuela Government International Bond

 

10,000

 

6.41

%

12/20/17

 

5.00

%

(562,150

)

(493,636

)

(68,514

)

HSBC Bank:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Venezuela Government International Bond

 

10,000

 

6.41

%

12/20/17

 

5.00

%

(562,150

)

(473,812

)

(88,338

)

 

 

 

 

 

 

 

 

 

 

$(3,908,667

)

$(2,617,074

)

$(1,291,593

)

 


 

Credit spread not quoted for asset-backed securities.

 

 

 

(1)

 

If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are assumed by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value.

 

 

 

(2)

 

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

 

 

 

(3)

 

This represents the maximum potential amount the Fund could be required to make available as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

 

 

 

(4)

 

The quoted market prices and resulting values for credit default swap agreements serve as an indicator of the status at December 31, 2012 of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement have been closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

 

 

 

(n)

 

Interest rate swap agreements outstanding at December 31, 2012:

 

OTC swap agreements:

 

 

 

Notional

 

 

 

Rate Type

 

 

 

Upfront

 

 

 

Swap
Counterparty

 

Amount
(000s)

 

Termination
Date

 

Payments
Made

 

Payments
Received

 

Market
Value

 

Premiums
Paid

 

Unrealized
Appreciation

 

Deutsche Bank

 

$1,330,000

 

12/18/22

 

3-Month USD-LIBOR

 

2.30

%

$5,286,375

 

$2,945,086

 

$2,341,289

 

Morgan Stanley

 

2,000,000

 

12/18/22

 

3-Month USD-LIBOR

 

2.30

%

7,898,102

 

5,466,000

 

2,432,102

 

 

 

 

 

 

 

 

 

 

 

$13,184,477

 

$8,411,086

 

$4,773,391

 

 



 

Centrally cleared swap agreements:

 

 

 

Notional

 

 

 

Rate Type

 

 

 

Unrealized

 

Broker
(Exchange)

 

Amount
(000s)

 

Termination
Date

 

Payments
Made

 

Payments
Received

 

Market
Value

 

Appreciation
(Depreciation)

 

Barclays Bank (CME)

 

$200,000

 

6/16/20

 

3-Month USD-LIBOR

 

4.00%

 

$38,417,314

 

$3,905,493

 

Goldman Sachs (CME)

 

500,000

 

6/20/17

 

3-Month USD-LIBOR

 

3.75%

 

67,621,618

 

(3,016,088

)

Goldman Sachs (CME)

 

500,000

 

12/18/18

 

1.25%

 

3-Month USD-LIBOR

 

(1,199,365

)

(1,439,365

)

Goldman Sachs (CME)

 

200,000

 

12/18/23

 

2.00%

 

3-Month USD-LIBOR

 

2,299,930

 

(458,070

)

 

 

 

 

 

 

 

 

 

 

$107,139,497

 

$(1,008,030

)

 

(o)

 

Forward foreign currency contracts outstanding at December 31, 2012:

 

 

 

Counterparty

 

U.S.$ Value on
Origination Date

 

U.S.$ Value
December 31, 2012

 

Unrealized
Appreciation
(Depreciation)

 

Purchased:

 

 

 

 

 

 

 

 

 

130,709,000 British Pound settling 1/2/13

 

Goldman Sachs

 

$212,846,536

 

$212,330,225

 

$(516,311

)

32,980,000 Euro settling 1/2/13

 

Bank of America

 

43,714,990

 

43,531,977

 

(183,013

)

32,981,000 Euro settling 1/2/13

 

UBS

 

43,831,749

 

43,533,297

 

(298,452

)

Sold:

 

 

 

 

 

 

 

 

 

64,870,000 British Pound settling 1/2/13

 

BNP Paribas

 

104,105,322

 

105,378,066

 

(1,272,744

)

968,000 British Pound settling 1/2/13

 

Citigroup

 

1,561,777

 

1,572,468

 

(10,691

)

64,871,000 British Pound settling 1/2/13

 

Goldman Sachs

 

103,822,144

 

105,379,691

 

(1,557,547

)

130,709,000 British Pound settling 2/4/13

 

Goldman Sachs

 

212,824,969

 

212,311,926

 

513,043

 

32,980,000 Euro settling 2/4/13

 

Bank of America

 

43,729,336

 

43,543,850

 

185,486

 

65,961,000 Euro settling 1/2/13

 

BNP Paribas

 

85,421,804

 

87,065,274

 

(1,643,470

)

32,981,000 Euro settling 2/4/13

 

UBS

 

43,845,106

 

43,545,170

 

299,936

 

 

 

 

 

 

 

 

 

$(4,483,763

)

 

At December 31, 2012, the Fund held $29,280,000 in cash as collateral and pledged cash collateral of $15,386,000 for derivative contracts. Cash collateral held may be invested in accordance with the Fund’s investment strategy.

 

 

 

(p)

 

The weighted average daily balance of reverse repurchase agreements during the nine months ended December 31, 2012 for the Fund was $56,275,171, at a weighted average interest rate of 0.67%. There were no open reverse repurchase agreements at December 31, 2012.

 



 

Fair Value Measurements

 

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e. the “exit price”) in an orderly transaction between market participants. The three levels of the fair value hierarchy are described below:

 

·                  Level 1 – quoted prices in active markets for identical investments that the Fund has the ability to access

 

·                  Level 2 – valuations based on other significant observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates or other market corroborated inputs

 

·                  Level 3 – valuations based on significant unobservable inputs (including the Sub-Adviser’s or Valuation Committee’s own assumptions and single broker quotes in determining the fair value of investments)

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following are certain inputs and techniques that the Fund generally uses to evaluate how to classify each major category of assets and liabilities for Level 2 and Level 3, in accordance with Generally Accepted Accounting Principles.

 

Equity Securities (Common and Preferred Stock) — Equity securities traded in inactive markets are valued using inputs which include broker-dealer quotes, recently executed transactions adjusted for changes in the benchmark index, or evaluated price quotes received from independent pricing services that take into account the integrity of the market sector and issuer, the individual characteristics of the security, and information received from broker-dealers and other market sources pertaining to the issuer or security. To the extent that these inputs are observable, the values of equity securities are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

 

U.S. Treasury Obligations — U.S. Treasury obligations are valued by independent pricing services based on pricing models that evaluate the mean between the most recently quoted bid and ask price. The models also take into consideration data received from active market makers and broker-dealers, yield curves, and the spread over comparable U.S. Treasury issues. The spreads change daily in response to market conditions and are generally obtained from the new issue market and broker-dealer sources. To the extent that these inputs are observable, the values of U.S. Treasury obligations are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

 

Government Sponsored Enterprise and Mortgage-Backed Securities — Government sponsored enterprise and mortgage-backed securities are valued by independent pricing services using pricing models based on inputs that include issuer type, coupon, cash flows, mortgage prepayment projection tables and Adjustable Rate Mortgage evaluations that incorporate index data, periodic and life caps, the next coupon reset date, and the convertibility of the bond. To the extent that these inputs are observable, the values of government sponsored enterprise and mortgage-backed securities are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

 

Corporate Bonds & Notes — Corporate bonds & notes are generally comprised of two main categories: investment grade bonds and high yield bonds. Investment grade bonds are valued by independent pricing services using various inputs and techniques, which include broker-dealer quotations, live trading levels, recently executed transactions in securities of the issuer or comparable issuers, and option adjusted spread models that include base curve and spread curve inputs. Adjustments to individual bonds can be applied to recognize trading differences compared to other bonds issued by the same issuer. High yield bonds are valued by independent pricing services based primarily on broker-dealer quotations from relevant market makers and recently executed transactions in securities of the issuer or comparable issuers. The broker-dealer quotations received are supported by credit analysis of the issuer that takes into consideration credit quality assessments, daily trading activity, and the activity of the underlying equities, listed bonds and sector-specific trends. To the extent that these inputs are observable, the values of corporate bonds & notes are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

 

Asset-Backed Securities and Collateralized Mortgage Obligations — Asset-backed securities and collateralized mortgage obligations are valued by independent pricing services using pricing models based on a security’s average life volatility. The models also take into account tranche characteristics such as coupon, average life, collateral types, ratings, the issuer and tranche type, underlying collateral and performance of the collateral, and discount margin for certain floating rate issues. To the extent that these inputs are observable, the values of asset-backed securities and collateralized mortgage obligations are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

 



 

Forward Foreign Currency Contracts — Forward foreign currency contracts are valued by independent pricing services using various inputs and techniques, which include broker-dealer quotations, actual trading information and foreign currency exchange rates gathered from leading market makers and foreign currency exchange trading centers throughout the world. To the extent that these inputs are observable, the values of forward foreign currency contracts are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

 

Credit Default Swaps — Credit default swaps traded over-the-counter (“OTC”) are valued by independent pricing services using pricing models that take into account, among other factors, information received from market makers and broker-dealers, default probabilities from index specific credit spread curves, recovery rates, and cash flows. To the extent that these inputs are observable, the values of OTC credit default swaps are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

 

Interest Rate Swaps — OTC interest rate swaps are valued by independent pricing services using pricing models that are based on real-time intraday snapshots of relevant interest rate curves that are built using the most actively traded securities for a given maturity. The pricing models also incorporate cash and money market rates. In addition, market data pertaining to interest rate swaps is monitored regularly to ensure that interest rates are properly depicting the current market rate. Centrally cleared interest rate swaps are valued at the price determined by the relevant exchange. To the extent that these inputs are observable, the values of interest rate swaps are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

 

The valuation techniques used by the Fund to measure fair value during the nine months ended December 31, 2012 were intended to maximize the use of observable inputs and to minimize the use of unobservable inputs.

 

The Fund’s policy is to recognize transfers between levels at the end of the reporting period. An investment asset’s or liability’s level within the fair value hierarchy is based on the lowest level input, individually or in aggregate, that is significant to the fair value measurement. The objective of fair value measurement remains the same even when there is a significant decrease in the volume and level of activity for an asset or liability and regardless of the valuation techniques used. Investments categorized as Level 1 or 2 as of period end may have been transferred between Levels 1 and 2 since the prior period due to changes in the valuation method utilized in valuing the investments.

 

A summary of the inputs used at December 31, 2012 in valuing the Fund’s assets and liabilities is listed below (refer to the Schedule of Investments for more detailed information on Investments in Securities and Other Financial Instruments):

 



 

 

 

Level 1 -
Quoted Prices

 

Level 2 -
Other Significant
Observable
Inputs

 

Level 3 -
Significant
Unobservable
Inputs

 

Value at
12/31/12

 

Investments in Securities - Assets

 

 

 

 

 

 

 

 

 

Corporate Bonds & Notes:

 

 

 

 

 

 

 

 

 

Airlines

 

$—

 

$—

 

$18,104,014

 

$18,104,014

 

Diversified Financial Services

 

 

133,484,796

 

17,688,979

 

151,173,775

 

Electric Utilities

 

 

67,256,130

 

463,144

 

67,719,274

 

Insurance

 

 

85,198,633

 

34,728,055

 

119,926,688

 

Real Estate

 

 

4,233,209

 

4,019,447

 

8,252,656

 

All Other

 

 

433,263,555

 

 

433,263,555

 

Mortgage-Backed Securities

 

 

177,345,929

 

1,052,058

 

178,397,987

 

Preferred Stock:

 

 

 

 

 

 

 

 

 

Banking

 

13,110,500

 

43,114,527

 

 

56,225,027

 

All Other

 

 

31,012,935

 

 

31,012,935

 

Asset-Backed Securities

 

 

70,093,297

 

 

70,093,297

 

Short-Term Investments

 

 

258,009,942

 

 

258,009,942

 

Total Investments in Securities - Assets

 

$13,110,500

 

$1,303,012,953

 

$76,055,697

 

$1,392,179,150

 

Other Financial Instruments* - Assets

 

 

 

 

 

 

 

 

 

Foreign Exchange Contracts

 

$—

 

$998,465

 

$—

 

$998,465

 

Interest Rate Contracts

 

 

8,678,884

 

 

8,678,884

 

Total Other Financial Instruments* - Assets

 

$—

 

$9,677,349

 

$—

 

$9,677,349

 

Other Financial Instruments* - Liabilities

 

 

 

 

 

 

 

 

 

Credit Contracts

 

$—

 

$(1,291,593

)

$—

 

$(1,291,593

)

Foreign Exchange Contracts

 

 

(5,482,228

)

 

(5,482,228

)

Interest Rate Contracts

 

 

(4,913,523

)

 

(4,913,523

)

Total Other Financial Instruments* - Liabilities

 

$—

 

$(11,687,344

)

$—

 

$(11,687,344

)

Total Investments

 

$13,110,500

 

$1,301,002,958

 

$76,055,697

 

$1,390,169,155

 

 

At December 31, 2012, there were no transfers between Levels 1 and 2.

 

A roll forward of fair value measurements using significant unobservable inputs (Level 3) for the nine months ended December 31, 2012, was as follows:

 

 

 

Beginning
Balance
3/31/12

 

Purchases

 

Sales

 

Accrued
Discount
(Premiums)

 

Net
Realized
Gain(Loss)

 

Net Change
in Unrealized
Appreciation/
Depreciation

 

Transfers
into
Level 3

 

Transfers
out of
Level 3**

 

Ending
Balance
12/31/12

 

Investments in Securities - Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Bonds & Notes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Airlines

 

$18,661,529

 

$—

 

$(2,167,017

)

$(89,680

)

$(178,006

)

$1,877,188

 

$—

 

$—

 

$18,104,014

 

Diversified Financial Services

 

16,460,217

 

 

 

499,693

 

 

729,069

 

 

 

17,688,979

 

Electric Utilities

 

15,339,703

 

 

(12,157,823

)

(1,778

)

(1,832

)

(1,575,601

)

 

(1,139,525

)

463,144

 

Insurance

 

31,438,829

 

 

 

 

 

3,289,226

 

 

 

34,728,055

 

Real Estate

 

 

4,052,645

 

 

947

 

 

(34,145

)

 

 

4,019,447

 

Mortgage-Backed Securities

 

739,670

 

 

(1,197,216

)

196,985

 

995,936

 

316,683

 

 

 

1,052,058

 

Preferred Stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Services

 

563,937

 

 

(714,000

)

 

84,000

 

66,063

 

 

 

 

Total Investments

 

$83,203,885

 

$4,052,645

 

$(16,236,056

)

$606,167

 

$900,098

 

$4,668,483

 

$—

 

$(1,139,525

)

$76,055,697

 

 

The following tables present additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 at December 31, 2012:

 

 

 

Ending 
Balance
at 12/31/12

 

Valuation
Technique Used

 

Unobservable
Inputs

 

Input Values

 

Investments in Securities - Assets

 

 

 

 

 

 

 

 

 

Corporate Bonds & Notes

 

$56,436,481

 

Benchmark Pricing

 

Security Price Reset

 

$79.73 - $98.27; EUR 112.92

 

Corporate Bonds & Notes

 

18,567,158

 

Third-Party Pricing Vendor

 

Single Broker Quote

 

$106.00 - $115.12

 

Mortgage-Backed Securities

 

1,052,058

 

Third-Party Pricing Vendor

 

Single Broker Quote

 

$13.90 - $19.10

 

Total Investments

 

$76,055,698

 

 

 

 

 

 

 

 


* Other financial instruments are derivatives not reflected in the Schedule of Investments, such as swap agreements and forward foreign currency contracts, which are valued at the unrealized appreciation (depreciation) of the instrument.

** Transferred out of Level 3 into Level 2 because an evaluated price with observable inputs from a third-party pricing vendor became available.

 



 

The net change in unrealized appreciation/depreciation of Level 3 investments, which the Fund held at December 31, 2012 was $6,290,917.

 

Glossary:

 

£ - British Pound

 

CIFG - insured by CDC IXIS Financial Guaranty Services, Inc.

 

CME - Chicago Mercantile Exchange

 

CMO - Collateralized Mortgage Obligation

 

€/EUR - Euro

 

FRN - Floating Rate Note

 

LIBOR - London Inter-Bank Offered Rate

 

NPFGC - insured by National Public Finance Guarantee Corp.

 

OTC - Over-the-Counter

 



 

Item 2. Controls and Procedures

 

(a)   The registrant’s President & Chief Executive Officer and Treasurer, Principal Financial & Accounting Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))), are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

 

(b)   There were no significant changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d))) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 3. Exhibits

 

(a) Exhibit 99.302 Cert. — Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Registrant: PIMCO High Income Fund

 

By:

/s/ Brian S. Shlissel

 

President & Chief Executive Officer

 

 

 

Date: February 21, 2013

 

 

 

By:

/s/ Lawrence G. Altadonna

 

Treasurer, Principal Financial & Accounting Officer

 

 

 

 

Date: February 21, 2013

 

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:

/s/ Brian S. Shlissel

 

President & Chief Executive Officer

 

 

 

Date: February 21, 2013

 

 

 

By:

/s/ Lawrence G. Altadonna

 

Treasurer, Principal Financial & Accounting Officer

 

 

 

 

Date: February 21, 2013