NEW YORK, December 03, 2021 (GLOBE NEWSWIRE) – The board of directors of PIMCO Dynamic Income Opportunities Fund (“Fund”) has declared a special year-end distribution for its common shares, as summarized below. The distribution is payable on December 21, 2021 to shareholders of record on December 14, 2021, with an ex-dividend date of December 13, 2021. In addition to the regular monthly dividend, this special year-end distribution is paid to allow the Fund to meet to its 2021 distribution requirements for federal excise tax purposes. The total distribution of the Fund will be taxable to shareholders in 2021.
Distributions may include ordinary income, net capital gains and / or returns of capital. Typically, a return of capital occurs when the amount distributed by the Fund includes a portion of (or is entirely comprised of) your investment in the Fund in addition to (or rather than) your pro rata portion of net income or capital. of the Fund. wins. Distributions from the Fund in any period may be greater or less than the net return obtained by the Fund on its investments and therefore should not be used as a measure of performance or confused with “return” or “income”. A return of capital is not taxable; rather, it reduces a shareholder’s tax base for their Fund shares.
To the extent required by the 1940 Act and other applicable laws, in the absence of an exemption, a notice will accompany each monthly distribution with respect to the estimated source (between net income, gains or other source of capital) of the distribution carried out. If the Fund believes that any part of any of its dividend distributions may consist of amounts from sources other than net income, in accordance with its policies and good accounting practices, the Fund will notify registered shareholders of the estimated composition. of such distribution by notice under section 19. For these purposes, the Fund shall estimate the source or sources from which a distribution is paid, until the end of the period from which it is paid, by referring to its internal accounting records and related accounting practices. If, based on those accounting records and practices, it is determined that a particular distribution does not include capital gains or paid-in surplus or other sources of capital, a notice under section 19 shall not include will generally not be issued. It is important to note that there are differences between the daily internal books and accounting practices of the Fund, the financial statements of the Fund presented in accordance with US GAAP and record keeping practices under tax regulations. For example, the internal accounting records and practices of the Fund may take into account, among other factors, the tax characteristics of certain sources of distributions that differ from treatment under US GAAP. Examples of such differences may include, among others, the treatment of repayments on mortgage-backed securities purchased at a discount and periodic payments under interest rate swaps. Therefore, among other consequences, the Fund may not issue a Section 19 notice in situations where the Fund’s financial statements subsequently prepared and in accordance with US GAAP and / or the character final tax of such distributions may subsequently indicate that the sources of such distributions included capital gains and / or return of capital. Please see the Fund’s most recent Shareholder Reports and Section 19 Notice, if applicable, for further details.
The distribution rate of the Fund may be affected by many factors, including changes in realized and projected market returns, the performance of the Fund and other factors. There can be no assurance that a change in market conditions or other factors will not result in a change in the distribution rate of the Fund at any future date.
The tax treatment and characterization of the Fund’s distributions may vary significantly from time to time due to the varied nature of the Fund’s investments. For example, the Fund may enter into multiple interest rate swaps or other derivatives with respect to the same underlying benchmark instrument (for example, a 10-year US Treasury bill) that have dates of maturity. ” different effect with regard to the periods of accumulation of interest for the main objective of generating distributable gains (qualified as ordinary income for tax purposes) which are not part of the management strategies of the duration or the yield curve. fund performance. In such a “matched swap transaction”, the Fund would generally enter into one or more interest rate swap agreements under which the Fund undertakes to make regular payments from the time the Fund enters into the corresponding agreements. a variable interest rate in exchange for payments equal to a fixed interest rate (the “initial leg”). The Fund would also enter into one or more interest rate swap contracts on the same underlying instrument, but take the opposite position (i.e., in this example, the Fund would make regular payments equal to a fixed interest rate in exchange for payments equal to a variable interest rate) in respect of a contract under which payment obligations do not begin until a date following the start of the initial leg (the “Step to term”). Certain funds may engage in investment strategies, including those which use derivatives, in order, among other things, to seek to generate current distributable income, although these strategies could potentially lead to a decrease in the net asset value of the fund. The Fund’s income and earning strategies, including certain derivative strategies, may generate current income and taxable gains such as ordinary income sufficient to support monthly distributions, even in situations where the Fund has experienced a decline in value. net assets due, for example, to adverse changes in the broad US or non-US equity markets or the Fund’s debt investments, or as a result of its use of derivative instruments. Since some or all of these transactions may generate capital losses without corresponding compensatory capital gains, portions of the Fund’s distributions recognized as ordinary income for tax purposes (such as paired swap transactions) may be economically similar to a refund of taxable capital when considered together with such capital losses. The tax treatment of certain derivatives in which the Fund invests may not be clear and therefore subject to requalification. Any reclassification of payments made or received by the Fund under derivative instruments could potentially affect the amount, timing or character of distributions from the Fund. In addition, the tax treatment of these investment strategies may be changed by regulatory or other means.
The Fund’s common shares trade on the New York Stock Exchange. As with any share, the price of the common shares of the Fund will fluctuate depending on market conditions and other factors. If you sell your common shares of the Fund, the price you received may be more or less than your original investment.
The shares of closed-end investment management companies, such as the Fund, frequently trade at a discount to their net asset value and may be traded below the initial offer price and / or the value. liquidation of these shares. In addition, if the shares of the Fund trade at a price higher than the initial offer price and / or the net asset value of those shares, including at a substantial premium and / or for an extended period, there can be no assurance that Such premium will be maintained for any period of time and will not decrease, or that the Shares will not subsequently trade at a discount to the NAV.
The Fund’s daily closing price on the New York Stock Exchange, NAV per share, as well as other information, including updated portfolio statistics and performance, can be found at pimco.com/closedendfunds or by calling the Fund’s Shareholder Service Agent at (844) 33-PIMCO. Updated information on the Fund’s portfolio holdings will be available approximately 15 calendar days after the end of the Fund’s most recent fiscal quarter, and will remain accessible until the Fund files an N-PORT form or report to the Fund. shareholders for the period which includes the date of the information. .
PIMCO was founded in 1971 in Newport Beach, California and is one of the world’s leading fixed income investment managers. Today, we have offices around the world and over 2,800 professionals united by one goal: to create opportunities for investors in all environments. PIMCO is owned by Allianz SE, one of the world’s leading providers of diversified financial services.
With the exception of historical information and discussions contained in this document, the statements contained in this press release constitute forward-looking statements. These statements may involve a number of risks, uncertainties and other factors that could cause actual results to vary materially, including performance of financial markets, investment performance of PIMCO sponsored investment products and managed accounts. separately, general economic conditions, future acquisitions, government conditions and regulations, including changes in tax laws. Readers should carefully consider these factors. In addition, these forward-looking statements speak only as of the date on which such statements are made. PIMCO makes no commitment to update any forward-looking statements to reflect events or circumstances after the date of such statements.
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For more information on PIMCO Closed End Funds: Financial Advisors: (800) 628-1237 Shareholders: (844) 337-4626 or (844) 33-PIMCO PIMCO Media Relations: (212) 597-1054