PIMCO Closed-End Funds Thrashed After Gross Departure

Banking, finance, and taxes

Published: September 26, 2014 10:25 am

Last Updated: September 27, 2014 10:37 am

It is a rare event that a fund manager’s departure can create such strong waves in a market. Still, when it is the likes of a Bill Gross punching out of his seat at the top bond fund management house of PIMCO to join Janus Capital (NYSE: JNS), this is massive news.

What is not all that unexpected is that many of the key closed-end PIMCO funds are selling off on the news. What is surprising is by how much the PIMCO closed-end mutual funds are actually selling off.

Please note – this story has been updated for closing prices, a daily trading range on each, and a volume summary showing massive volume spikes.

We have looked at performance, 52-week trading ranges and the yield of many of PIMCO’s closed-end funds. We even looked at the listed premium or discount of each fund at the CEFA.com site, although we would warn readers that this data will have a lookback and will not likely reflect the price changes from Friday morning. These are how some of PIMCO’s top closed-end bond fund strategies, outside of municipal bond funds, were down after the open of trading on Friday.

PIMCO High Income Fund (NYSE: PHK) was down 7.8% at $11.48, against a 52-week range of $11.11 to $13.75. Its yield is now listed as 7.7%. The premium or discount listed at the Closed-End Fund Association website shows a premium of 46%. Shares closed down 6.1% at $11.69 with a range of $11.11 (year low) to $11.85 on Friday. Its volume was 14.1 million shares versus an average daily volume of about 855,000.

PIMCO Corporate & Income Opportunity Fund (NYSE: PTY) was down 5.8% at $17.33, against a 52-week range of $16.75 to $19.38. Its yield is now indicated as 7.4%. The premium or discount listed at the Closed-End Fund Association website shows a premium of 17.2%. Shares closed down 6.6% at $17.18 with a day range of $16.75 (year low) to $17.54. Total volume was over 3.5 million shares versus an average volume of 203,000 shares.

PIMCO Global StocksPLUS & Income Fund (NYSE: PGP) was down 7.3% at $23.27, against a 52-week range of $21.52 to $26.92. Its yield is now signaled as more than 9%. The premium or discount listed at the Closed-End Fund Association website shows a premium of 77%. Shares closed down 5.7% at $23.67 with a day range of $21.52 (year low) to $23.94. Trading volume was 1.08 million shares versus only about 70,000 on average.

PIMCO Income Strategy Fund (NYSE: PFL) was down 3.6% at $11.88, against a 52-week range of $11.07 to $12.67. Its yield is now signaled as 8.5%. The premium or discount listed at the Closed-End Fund Association website shows a premium of only 0.2%. Shares closed down 4.46% at $11.77 with a daily range of $11.42 to $11.93. Trading volume was 927,000 shares versus an average of about 101,000.

PIMCO Income Strategy Fund II (NYSE: PFN) was down 2.7% at $10.38, against a 52-week range of $9.84 to $11.07. Its yield is now signaled as 8.7%. The premium or discount listed at the Closed-End Fund Association website shows a discount of -2.3%.

PCM Fund Inc. (NYSE: PCM) was down 2.2% to $11.12, against a 52-week range of $10.75 to $12.44. Its yield is now 8.9%. The premium or discount listed at the Closed-End Fund Association website shows a premium of 2%. PCM closed down 1.4% at $11.21 with a daily range of $10.75 to $12.44. It traded almost 190,000 shares versus about 23,000 for an average day.

PIMCO Corporate & Income Strategy Fund (NYSE: PCN) was down 2.4% at $16.05, against a 52-week range of $15.69 to $17.26. Its yield is now signaled as 7.7%. The premium or discount listed at the Closed-End Fund Association website shows a premium of 4.8%. PCN closed down 4.2% at $15.74 with a daily range of $15.70 to $17.26, and volume was 828,000 versus almost 100,000 for a typical day.

PIMCO Dynamic Credit Income Fund (NYSE: PCI) was down 1.8% at $21.93, against a 52-week range of $21.40 to $24.07. Its yield is now 8.5%. The premium or discount listed at the Closed-End Fund Association website shows a discount of -9.5%. This fund closed down 1.6% at $21.98 with a range on Friday of $21.72 to $22.20.

PIMCO Dynamic Income Fund (NYSE: PDI) was down 1.8% at $31.50, against a 52-week range of $28.20 to $34.11. Its yield is now listed as 7.3%. The premium or discount listed at the Closed-End Fund Association website shows a discount of -5.0%. This fund closed down only 0.9% at $31.81 with a range of $31.08 to $31.96, and its volume of 1.59 million compared to an average daily volume of 219,000.

ALSO READ: Janus Gets $700 Million Payday on Bill Gross Hire!

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