UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED
SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number |
811-21311 |
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PIMCO High Income Fund |
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(Exact name of registrant as specified in charter) |
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1345 Avenue of the Americas, New York, New York |
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10105 |
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(Address of principal executive offices) |
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(Zip code) |
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Lawrence G. Altadonna - 1345 Avenue of the Americas, New York, New York 10105 |
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(Name and address of agent for service) |
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Registrants telephone number, including area code: |
212-739-3371 |
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Date of fiscal year end: |
March 31, 2007 |
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Date of reporting period: |
September 30, 2006 |
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Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (OMB) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
ITEM 1. REPORT TO SHAREHOLDERS
PIMCO High Income Fund
Semi-Annual
Report
September 30, 2006
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Contents |
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Letter to Shareholders |
1 |
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Performance & Statistics |
2 |
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Schedule of Investments |
3-12 |
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Statement of Assets and Liabilities |
13 |
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Statement of Operations |
14 |
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Statement of Changes in Net Assets |
15 |
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Notes to Financial Statements |
16-24 |
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Financial Highlights |
25 |
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Matters Relating to the Trustees Consideration of the Investment Management & Portfolio Management Agreements |
26-28 |
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PIMCO High Income Fund Letter to Shareholders
October 11, 2006
Dear Shareholder:
We are pleased to provide you with the semi-annual report for PIMCO High Income Fund (the Fund) for the fiscal six-month period ended September 30, 2006.
For performance and specific information on the Fund please refer to the following pages. If you have any questions regarding the information provided, we encourage you to contact your financial advisor or call the Funds shareholder servicing agent at (800) 331-1710. In addition, a wide range of information and resources is available on our Web site, www.allianzinvestors.com/closedendfunds.
Together with Allianz Global Investors Fund Management LLC, the Funds investment manager, and Pacific Investment Management Company LLC, the Funds sub-adviser, we thank you for investing with us.
We remain dedicated to serving your financial needs.
Sincerely,
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Robert E. Connor |
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Brian S. Shlissel |
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Chairman |
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President & Chief Executive Officer |
9.30.06 | PIMCO High Income Fund Semi-Annual Report 1
PIMCO High Income Fund Performance & Statistics
September 30, 2006 (unaudited)
* For the six-month period, the Funds net asset value (NAV) and market price returns were 3.93% and 11.03%, respectively.
* During the reporting period, the Merrill Lynch High Yield Master II Index returned 3.88%, narrowly outpacing the 3.73% return for the broad bond market, as measured by the Lehman Brothers Aggregate Bond Index.
* Security selection in the consumer cyclical sector was a positive for Fund performance during the reporting period, as auto-related issues in particular significantly outperforming the overall high yield bond market.
* A focus on the telecom sector detracted from Fund performance during the first half of the reporting period. In the second half, however, a large weighting in wireline companies within this sector contributed positively to performance.
* Within the energy sector, an emphasis on pipeline issuers was a positive contributor to Fund performance during the second half of the reporting period, although the energy sector in general suffered during the first three months as the effects of an unseasonably warm winter carried over into the spring.
* The decision avoiding the building products sector entirely was positive for Fund performance throughout the reporting period as this sector underperformed, largely due to growing inventories and declining demand in the housing market.
* The Funds focus on B-rated high yield issues produced mixed results, contributing strongly to Fund performance in the first half of the reporting period, but detracting somewhat in the second half as these issues underperformed both BB- and CCC-rated issues.
Total Return(1): |
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Market Price |
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Net Asset Value (NAV) |
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Six months |
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11.03% |
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3.93% |
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1 year |
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18.20% |
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9.01% |
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3 years |
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16.66% |
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11.65% |
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Commencement of Operations (4/30/03) to 9/30/06 |
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13.27% |
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12.18% |
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Common Share Market Price/NAV Performance:
Commencement of
Operations (4/30/03) to 9/30/06
Market Price/NAV:
Market Price |
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$15.75 |
NAV |
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$14.68 |
Premium to NAV |
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7.29% |
Market Price Yield(2) |
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9.29% |
(1) Past performance is no guarantee of future results. Total return is determined by subtracting the initial investment from the value at the end of the period and dividing the remainder by the initial investment and expressing the result as a percentage. The calculation assumes that all income dividends and capital gain distributions have been reinvested at prices obtained under the Fund's dividend reinvestment plan. Total return does not reflect broker commissions or sales charges. Total return for a period of less than one year is not annualized. Total return for a period of more than one year represents the average annual total return.
An investment in the Fund involves risk, including the loss of principal. Investment return, price, yield and net asset value will fluctuate with changes in market conditions. This data is provided for information only and is not intended for trading purposes. Closed-end funds, unlike open-end funds, are not continuously offered. There is a one-time public offering and once issued, shares of closed-end funds are sold in the open market through a stock exchange. Net asset value is total assets applicable to common shareholders less total liabilities divided by the number of common shares outstanding. Holdings are subject to change daily.
(2) Market Price Yield is determined by dividing the annualized current monthly per share dividend to common shareholders by the market price per common share at September 30, 2006.
2 PIMCO High Income Fund Semi-Annual Report | 9.30.06
PIMCO High Income Fund Schedule of Investments
September 30, 2006 (unaudited)
Principal |
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Credit
Rating |
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Value |
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CORPORATE BONDS & NOTES 86.7% |
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Aerospace 0.2% |
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$ |
5,600 |
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Armor Holdings, Inc., 8.25%, 8/15/13 |
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B1/B+ |
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$ |
5,824,000 |
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Airlines 1.2% |
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8,760 |
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American
Airlines, Inc., pass thru certificates, |
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Baa3/BB+ |
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9,083,025 |
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Continental Airlines, Inc., pass thru certificates, |
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14,677 |
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6.92%, 4/2/13, 97-5A 9 (a) (b) (g) |
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NR/NR |
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14,934,503 |
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4,439 |
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7.373%, 6/15/17, Ser. 01-1 |
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Ba1/BB+ |
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4,397,070 |
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1,943 |
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8.307%, 10/2/19, Ser. 00-2 |
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Ba2/BB- |
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1,886,476 |
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3,547 |
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Northwest
Airlines, Inc., pass thru certificates, |
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Caa1/CCC |
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3,398,651 |
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333 |
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United
Air Lines, Inc., pass thru certificates, |
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Aaa/BBB |
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333,860 |
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4,158 |
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U.S. Airway Group, Inc., 9.625%, 9/1/24 (b) (f) (g) |
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NR/NR |
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14,970 |
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34,048,555 |
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Automotive 4.2% |
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10,450 |
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Arvin Capital I, 9.50%, 2/1/27 |
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B1/B |
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10,659,000 |
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18,725 |
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ArvinMeritor, Inc., 8.75%, 3/1/12 |
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Ba3/BB- |
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18,022,812 |
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5,150 |
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Cooper-Standard Automotive, Inc., 7.00%, 12/15/12 |
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B3/B- |
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4,467,625 |
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15,000 |
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Ford Motor Co., 7.45%, 7/16/31 |
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Ba3/B |
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11,662,500 |
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General Motors Corp., |
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8,000 |
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7.20%, 1/15/11 |
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Caa1/B- |
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7,410,000 |
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7,200 |
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8.25%, 7/15/23 |
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Caa1/B- |
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6,273,000 |
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Goodyear Tire & Rubber Co., |
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12,300 |
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9.00%, 7/1/15 |
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B3/B- |
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12,546,000 |
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7,000 |
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11.00%, 3/1/11 |
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B3/B- |
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7,752,500 |
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Tenneco Automotive, Inc., |
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14,000 |
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8.625%, 11/15/14 |
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B3/B |
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13,895,000 |
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14,025 |
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10.25%, 7/15/13, Ser. B |
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Aa3/B |
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15,287,250 |
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8,245 |
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TRW Automotive, Inc., 9.375%, 2/15/13 |
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Ba3/BB- |
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8,822,150 |
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116,797,837 |
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Building/Construction 0.2% |
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5,000 |
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Ahern Rentals, Inc., 9.25%, 8/15/13 |
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B-/B- |
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5,150,000 |
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Chemicals 3.3% |
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ARCO Chemical Co., |
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3,808 |
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9.80%, 2/1/20 |
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Ba3/B+ |
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4,322,080 |
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2,000 |
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10.25%, 11/1/10 |
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Ba3/B+ |
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2,180,000 |
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15,000 |
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Equistar Chemicals L.P., 10.125%, 9/1/08 |
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B1/BB- |
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15,956,250 |
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21,925 |
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Ineos Group Holdings PLC, 8.50%, 2/15/16 (d) |
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B2/B- |
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20,993,187 |
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Lyondell Chemical Co., |
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4,150 |
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8.00%, 9/15/14 |
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B+/B+ |
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4,222,625 |
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3,825 |
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8.25%, 9/15/16 |
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B+/B+ |
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3,901,500 |
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15,300 |
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Nalco Co., 8.875%, 11/15/13 |
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Caa1/B- |
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16,026,750 |
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13,660 |
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PQ Corp., 7.50%, 2/15/13 |
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B1/B- |
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13,045,300 |
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980 |
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Rhodia S.A., 8.875%, 6/1/11 |
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Caa2/B- |
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1,016,750 |
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10,500 |
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Rockwood Specialties Group, Inc., 7.50%, 11/15/14 |
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B3/B- |
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10,395,000 |
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92,059,442 |
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Commercial Products 0.7% |
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17,800 |
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Hertz Corp., 8.875%, 1/1/14 (d) |
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B1/B |
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18,734,500 |
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9.30.06 | PIMCO High Income Fund Semi-Annual Report 3
PIMCO High Income Fund Schedule of Investments
September 30, 2006 (unaudited) (continued)
Principal |
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Credit
Rating |
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Value |
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Computer Services 1.3% |
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SunGard Data Systems, Inc., |
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$ |
17,100 |
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9.125%, 8/15/13 |
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Ba1/B- |
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$ |
17,784,000 |
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17,000 |
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10.25%, 8/15/15 |
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Aaa/B- |
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17,595,000 |
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35,379,000 |
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Computer Software 0.4% |
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9,500 |
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UGS Corp., 10.00%, 6/1/12 |
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B3/B- |
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10,307,500 |
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Consumer Products 0.3% |
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Buhrmann US, Inc., |
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500 |
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7.875%, 3/1/15 |
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B2/B |
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483,750 |
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6,875 |
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8.25%, 7/1/14 |
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B2/B |
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6,823,437 |
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7,307,187 |
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Consumer Services 0.3% |
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9,200 |
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Education Management Corp., 10.25%, 6/1/16 (d) |
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Caa1/CCC+ |
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9,453,000 |
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Containers & Packaging 2.1% |
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Crown Americas LLC, |
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2,475 |
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7.625%, 11/15/13 |
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B/B |
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2,518,312 |
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5,650 |
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7.75%, 11/15/15 |
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B/B |
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5,748,875 |
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Jefferson Smurfit Corp., |
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11,200 |
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7.50%, 6/1/13 |
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B2/CCC+ |
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10,388,000 |
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10,263 |
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8.25%, 10/1/12 |
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B2/CCC+ |
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9,878,138 |
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Smurfit-Stone Container, |
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14,000 |
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8.375%, 7/1/12 |
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B2/CCC+ |
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13,510,000 |
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15,338 |
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9.75%, 2/1/11 |
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B2/CCC+ |
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15,874,830 |
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57,918,155 |
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Diversified Manufacturing 0.0% |
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1,000 |
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Quiksilver, Inc., 6.875%, 4/15/15 |
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B3/BB- |
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952,500 |
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Electronics 1.0% |
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12,750 |
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Sanmina-SCI Corp., 8.125%, 3/1/16 |
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NR/B |
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12,558,750 |
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10,600 |
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Sensata Technologies BV, 8.00%, 5/1/14 (d) |
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NR/B- |
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10,361,500 |
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6,400 |
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Solectron Global Finance Ltd., 8.00%, 3/15/16 |
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NR/B- |
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6,368,000 |
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29,288,250 |
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Energy 0.9% |
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2,000 |
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NRG Energy, Inc., 7.375%, 2/1/16 |
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B1/B- |
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1,992,500 |
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Reliant Energy, Inc., |
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7,025 |
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9.25%, 7/15/10 |
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B2/B |
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7,323,563 |
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15,525 |
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9.50%, 7/15/13 |
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B2/B |
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16,184,812 |
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742 |
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Reliant Energy Mid-Atlantic Power Holdings LLC, |
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9.237%, 7/2/17, Ser. B |
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Caa1/B |
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821,950 |
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26,322,825 |
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Financial Services 17.0% |
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30,870 |
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AES Ironwood LLC, 8.857%, 11/30/25 |
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B2/B+ |
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34,266,157 |
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8,075 |
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AES Red Oak LLC, 8.54%, 11/30/19, Ser. A |
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B2/B+ |
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8,640,260 |
|
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25,091 |
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BCP Crystal U.S. Holding Corp., 9.625%, 6/15/14 |
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B3/B |
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27,349,190 |
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17,700 |
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Bluewater Finance Ltd., 10.25%, 2/15/12 |
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B2/B- |
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18,009,750 |
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7,700 |
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Chukchansi Economic Development Authority, |
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8.00%, 11/15/13 (d) |
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B2/BB- |
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7,940,625 |
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|
275 |
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Cirsa Finance Luxembourg S.A., 8.75%, 5/15/14 |
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B1/B+ |
|
371,870 |
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$ |
9,977 |
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Consolidated Communications Holdings, 9.75%, 4/1/12 |
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B3/B |
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10,575,620 |
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4 PIMCO High Income Fund Semi-Annual Report | 9.30.06
PIMCO High Income Fund Schedule of Investments
September 30, 2006 (unaudited) (continued)
Principal |
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Credit
Rating |
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Value |
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Financial Services (continued) |
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Ford Motor Credit Co., |
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$ |
5,000 |
|
7.00%, 10/1/13 |
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B1/B |
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$ |
4,645,415 |
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|
35,000 |
|
7.375%, 2/1/11 |
|
B1/B |
|
33,624,395 |
|
|||
55,225 |
|
7.875%, 6/15/10 |
|
B1/B |
|
53,824,605 |
|
|||
15,000 |
|
8.625%, 11/1/10 |
|
B1/B |
|
14,955,480 |
|
|||
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General Motors Acceptance Corp., |
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|
|||
10,000 |
|
7.25%, 3/2/11 |
|
Ba1/BB |
|
10,066,540 |
|
|||
24,800 |
|
7.75%, 1/19/10 |
|
Ba1/BB |
|
25,429,449 |
|
|||
11,125 |
|
8.00%, 11/1/31 |
|
Ba1/BB |
|
11,664,251 |
|
|||
|
|
JET Equipment Trust (d) (f), |
|
|
|
|
|
|||
211 |
|
7.63%, 8/15/12, Ser. 95-B (g) |
|
NR/NR |
|
172,954 |
|
|||
326 |
|
10.00%, 6/15/12, Ser. A11 |
|
NR/NR |
|
316,524 |
|
|||
36,270 |
|
JSG Funding PLC, 9.625%, 10/1/12 |
|
B3/B- |
|
38,446,200 |
|
|||
18,445 |
|
KRATON Polymers LLC, 8.125%, 1/15/14 |
|
B3/B- |
|
17,937,762 |
|
|||
120,600 |
|
Targeted Return Index Securities Trust, |
|
|
|
|
|
|||
|
|
7.548%, 5/1/16, VRN (d) (h) (k) |
|
B1/B+ |
|
120,857,602 |
|
|||
19,203 |
|
Universal City Development Partners Ltd., 11.75%, 4/1/10 |
|
B2/B- |
|
20,787,248 |
|
|||
8,030 |
|
Universal City Florida Holding Co., 8.375%, 5/1/10 |
|
B3/B- |
|
8,100,262 |
|
|||
|
5,800 |
|
UPC Holding BV, 8.625%, 1/15/14 |
|
B3/CCC+ |
|
7,383,883 |
|
||
|
|
|
|
|
|
475,366,042 |
|
|||
Food 0.9% |
|
|
|
|
|
|||||
$ |
1 |
|
Dole Foods Co., Inc., 8.875%, 3/15/11 |
|
B3/B |
|
783 |
|
||
24,925 |
|
Ingles Markets, Inc., 8.875%, 12/1/11 |
|
B3/B |
|
26,108,937 |
|
|||
|
|
|
|
|
|
26,109,720 |
|
|||
Healthcare & Hospitals 4.0% |
|
|
|
|
|
|||||
8,000 |
|
DaVita, Inc., 7.25%, 3/15/15 |
|
B3/B |
|
7,900,000 |
|
|||
|
|
HCA, Inc., |
|
|
|
|
|
|||
13,200 |
|
6.95%, 5/1/12 |
|
Ba2/BB+ |
|
11,599,500 |
|
|||
7,475 |
|
7.50%, 12/15/23 |
|
Ba2/BB+ |
|
5,833,497 |
|
|||
2,130 |
|
7.58%, 9/15/25 |
|
Ba2/BB+ |
|
1,652,352 |
|
|||
4,600 |
|
7.69%, 6/15/25 |
|
Ba2/BB+ |
|
3,613,903 |
|
|||
5,000 |
|
7.875%, 2/1/11 |
|
Ba2/BB+ |
|
4,806,250 |
|
|||
8,000 |
|
8.75%, 9/1/10 |
|
Ba2/BB+ |
|
8,100,000 |
|
|||
9,000 |
|
9.00%, 12/15/14 |
|
Ba2/BB+ |
|
8,460,225 |
|
|||
6,700 |
|
National Mentor Holdings, Inc., 11.25%, 7/1/14 (d) |
|
Caa1/CCC+ |
|
6,901,000 |
|
|||
19,990 |
|
Rotech Healthcare, Inc., 9.50%, 4/1/12 |
|
Ba2/CC |
|
13,793,100 |
|
|||
|
|
Tenet Healthcare Corp., |
|
|
|
|
|
|||
17,000 |
|
7.375%, 2/1/13 |
|
Caa1/CCC+ |
|
15,406,250 |
|
|||
22,925 |
|
9.875%, 7/1/14 |
|
Caa1/CCC+ |
|
22,953,656 |
|
|||
|
|
|
|
|
|
111,019,733 |
|
|||
Hotels/Gaming 1.4% |
|
|
|
|
|
|||||
2,000 |
|
Gaylord Entertainment Co., 8.00%, 11/15/13 |
|
B3/B- |
|
2,045,000 |
|
|||
5,000 |
|
Herbst Gaming, Inc., 8.125%, 6/1/12 |
|
B3/B- |
|
5,131,250 |
|
|||
19,279 |
|
Mandalay Resort Group, 9.375%, 2/15/10 |
|
Ba3/B+ |
|
20,700,826 |
|
|||
8,948 |
|
Premier Entertainment LLC, 10.75%, 2/1/12 |
|
Caa1/CCC |
|
9,149,330 |
|
|||
3,500 |
|
Station Casinos, Inc., 6.875%, 3/1/16 |
|
Aaa/B+ |
|
3,298,750 |
|
|||
|
|
|
|
|
|
40,325,156 |
|
|||
Machinery 0.1% |
|
|
|
|
|
|||||
2,000 |
|
Chart Industries, Inc., 9.125%, 10/15/15 (d) |
|
B3/B- |
|
2,080,000 |
|
|||
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
9.30.06 | PIMCO High Income Fund Semi-Annual Report 5
PIMCO High Income Fund Schedule of Investments
September 30, 2006 (unaudited) (continued)
Principal |
|
|
|
|
Credit
Rating |
|
Value |
|
||
|
|
|
|
|
|
|||||
Manufacturing 0.6% |
|
|
|
|
|
|||||
$ |
9,545 |
|
Dresser, Inc., 10.125%, 4/15/11 |
|
B2/CCC+ |
|
$ |
10,034,181 |
|
|
6,403 |
|
Invensys PLC, 9.875%, 3/15/11 (d) |
|
B3/B- |
|
6,947,255 |
|
|||
|
|
|
|
|
|
16,981,436 |
|
|||
Medical Products 0.8% |
|
|
|
|
|
|||||
22,785 |
|
VWR International, Inc., 8.00%, 4/15/14 |
|
Caa1/B- |
|
23,098,294 |
|
|||
Miscellaneous 3.2% |
|
|
|
|
|
|||||
89,570 |
|
Dow Jones CDX U.S. High Yield, |
|
|
|
|
|
|||
|
|
8.375%, 12/29/11, Ser. 7-T1 (b) (d) (e) (g) (h) |
|
NR/NR |
|
89,398,344 |
|
|||
Multi-Media 5.3% |
|
|
|
|
|
|||||
3,000 |
|
Cablemas S.A. de C.V., 9.375%, 11/15/15 (d) |
|
B1/BB- |
|
3,135,000 |
|
|||
5,600 |
|
Cablevision Systems Corp., 8.00%, 4/15/12, Ser. B |
|
B3/B+ |
|
5,698,000 |
|
|||
39,300 |
|
CCO Holdings LLC, 8.75%, 11/15/13 |
|
B3/CCC- |
|
39,742,125 |
|
|||
10,000 |
|
Charter Communications Holdings I LLC, 11.00%, 10/1/15 |
|
Caa2/CCC- |
|
9,150,000 |
|
|||
4,605 |
|
Charter Communications Holdings II LLC, 10.25%, 9/15/10 |
|
Caa1/CCC- |
|
4,720,125 |
|
|||
|
|
Charter Communications Operating LLC (d), |
|
|
|
|
|
|||
13,000 |
|
8.00%, 4/30/12 |
|
B2/B- |
|
13,162,500 |
|
|||
14,325 |
|
8.375%, 4/30/14 |
|
B2/B- |
|
14,629,406 |
|
|||
|
|
CSC Holdings, Inc., |
|
|
|
|
|
|||
6,300 |
|
7.625%, 7/15/18 |
|
B2/B+ |
|
6,481,125 |
|
|||
1,485 |
|
7.875%, 2/15/18 |
|
B2/B+ |
|
1,548,113 |
|
|||
5,265 |
|
8.125%, 7/15/09, Ser. B |
|
B2/B+ |
|
5,475,600 |
|
|||
4,000 |
|
DirecTV Holdings LLC, 8.375%, 3/15/13 |
|
Ba2/BB- |
|
4,165,000 |
|
|||
4,750 |
|
Iesy Repository GmbH, 10.375%, 2/15/15 (d) |
|
Caa2/CCC+ |
|
4,393,750 |
|
|||
|
6,370 |
|
Lighthouse International Co. S.A., 8.00%, 4/30/14 (d) |
|
Aa2/B |
|
8,744,990 |
|
||
$ |
12,000 |
|
Rogers Cable, Inc., 8.75%, 5/1/32 |
|
Ba2/BB+ |
|
14,220,000 |
|
||
|
3,735 |
|
Telenet Communications NV, 9.00%, 12/15/13 (d) |
|
B2/B- |
|
5,275,410 |
|
||
|
|
Young Broadcasting, Inc., |
|
|
|
|
|
|||
$ |
7,300 |
|
8.75%, 1/15/14 |
|
Caa1/CCC- |
|
6,241,500 |
|
||
1,350 |
|
10.00%, 3/1/11 |
|
Caa1/CCC- |
|
1,267,313 |
|
|||
|
|
|
|
|
|
148,049,957 |
|
|||
Oil & Gas 8.1% |
|
|
|
|
|
|||||
18,000 |
|
Dynegy Holdings, Inc., 8.375%, 5/1/16 |
|
B-/B- |
|
18,405,000 |
|
|||
|
|
Dynergy-Roseton Danskammer, Inc., pass thru certificates, |
|
|
|
|
|
|||
5,050 |
|
7.27%, 11/8/10, Ser. A |
|
B3/B |
|
5,128,906 |
|
|||
25,500 |
|
7.67%, 11/8/16, Ser. B |
|
B3/B |
|
26,025,938 |
|
|||
|
|
El Paso Corp., |
|
|
|
|
|
|||
29,150 |
|
7.80%, 8/1/31 |
|
B2/B |
|
30,024,500 |
|
|||
27,850 |
|
8.05%, 10/15/30 |
|
B2/B |
|
29,103,250 |
|
|||
19,615 |
|
El Paso Production Holding Co., 7.75%, 6/1/13 |
|
B1/B+ |
|
20,154,413 |
|
|||
14,325 |
|
Ferrellgas L.P., 8.75%, 6/15/12 |
|
B2/B- |
|
14,969,625 |
|
|||
|
|
Hanover Compressor Co., |
|
|
|
|
|
|||
7,585 |
|
8.625%, 12/15/10 |
|
B3/B |
|
7,926,325 |
|
|||
1,550 |
|
9.00%, 6/1/14 |
|
B3/B |
|
1,650,750 |
|
|||
12,028 |
|
Hanover Equipment Trust, 8.50%, 9/1/08, Ser. A |
|
B2/B+ |
|
12,238,490 |
|
|||
4,000 |
|
Pogo Producing Co., 7.875%, 5/1/13 (d) |
|
Ba2/B+ |
|
4,095,000 |
|
|||
14,375 |
|
SemGroup L.P., 8.75%, 11/15/15 (d) |
|
B1/NR |
|
14,572,656 |
|
|||
3,000 |
|
Sonat, Inc., 7.00%, 2/1/18 |
|
B2/B |
|
2,925,000 |
|
|||
37,726 |
|
Williams Cos., Inc., 7.875%, 9/1/21 |
|
Ba2/BB- |
|
39,612,300 |
|
|||
|
|
|
|
|
|
226,832,153 |
|
|||
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
6 PIMCO High Income Fund Semi-Annual Report | 9.30.06
PIMCO High Income Fund Schedule of Investments
September 30, 2006 (unaudited) (continued)
Principal |
|
|
|
|
Credit
Rating |
|
Value |
|
||
|
|
|
|
|
|
|
|
|
||
Paper/Paper Products 3.9% |
|
|
|
|
|
|||||
|
|
Abitibi-Consolidated, Inc., |
|
|
|
|
|
|||
$ |
6,500 |
|
8.375%, 4/1/15 |
|
B1/B+ |
|
$ |
5,947,500 |
|
|
8,525 |
|
8.55%, 8/1/10 |
|
B1/B+ |
|
8,503,688 |
|
|||
14,159 |
|
8.85%, 8/1/30 |
|
B1/B+ |
|
11,964,355 |
|
|||
16,250 |
|
Bowater Canada Finance, 7.95%, 11/15/11 |
|
B1/B+ |
|
15,600,000 |
|
|||
2,200 |
|
Bowater, Inc., 9.375%, 12/15/21 |
|
B1/B+ |
|
2,167,000 |
|
|||
9,500 |
|
Cascades, Inc., 7.25%, 2/15/13 |
|
Ba3/BB- |
|
9,310,000 |
|
|||
|
|
Georgia-Pacific Corp., |
|
|
|
|
|
|||
4,550 |
|
7.75%, 11/15/29 |
|
B2/B |
|
4,390,750 |
|
|||
27,775 |
|
8.00%, 1/15/24 |
|
B2/B |
|
27,497,250 |
|
|||
13,750 |
|
8.875%, 5/15/31 |
|
B2/B |
|
14,368,750 |
|
|||
|
|
Verso Paper Holdings LLC (d), |
|
|
|
|
|
|||
5,700 |
|
9.125%, 8/1/14 |
|
Aaa/B+ |
|
5,764,125 |
|
|||
2,300 |
|
11.375%, 8/1/16 |
|
Aaa/B- |
|
2,294,250 |
|
|||
|
|
|
|
|
|
107,807,668 |
|
|||
Printing/Publishing 2.4% |
|
|
|
|
|
|||||
17,631 |
|
Dex Media West LLC, 9.875%, 8/15/13, Ser. B |
|
B2/B |
|
19,129,635 |
|
|||
1,000 |
|
Hollinger, Inc., 11.875%, 3/1/11 (d) |
|
B3e/NR |
|
915,000 |
|
|||
7,000 |
|
Nielsen Finance LLC, 10.00%, 8/1/14 (d) |
|
Ba2/CCC+ |
|
7,271,250 |
|
|||
10,477 |
|
Primedia, Inc., 8.875%, 5/15/11 |
|
B2/B |
|
10,293,653 |
|
|||
25,835 |
|
RH Donnelley Corp., 8.875%, 1/15/16 |
|
B3/B |
|
26,028,762 |
|
|||
2,000 |
|
RH Donnelley, Inc., 10.875%, 12/15/12 |
|
B2/B |
|
2,210,000 |
|
|||
|
|
|
|
|
|
65,848,300 |
|
|||
Real Estate 1.6% |
|
|
|
|
|
|||||
10,000 |
|
B.F. Saul REIT, 7.50%, 3/1/14 |
|
B2/BB- |
|
10,200,000 |
|
|||
12,400 |
|
Bon-Ton Stores, Inc., 10.25%, 3/15/14 |
|
B-/B- |
|
12,121,000 |
|
|||
8,000 |
|
Delhaize America, Inc., 9.00%, 4/15/31 |
|
Ba1/BB+ |
|
9,411,112 |
|
|||
3,900 |
|
Grupo Gigante S.A. de C.V., 8.75%, 4/13/16 (d) |
|
NR/BB |
|
3,880,500 |
|
|||
9,550 |
|
NPC International, Inc., 9.50%, 5/1/14 (d) |
|
Caa1/B- |
|
9,454,500 |
|
|||
|
|
|
|
|
|
45,067,112 |
|
|||
Telecommunications 14.9% |
|
|
|
|
|
|||||
14,075 |
|
American Cellular Corp., 10.00%, 8/1/11, Ser. B |
|
B3/CCC |
|
14,813,938 |
|
|||
11,555 |
|
Centennial Communications Corp., 8.125%, 2/1/14 |
|
B3/CCC |
|
11,439,450 |
|
|||
31,800 |
|
Cincinnati Bell, Inc., 8.375%, 1/15/14 |
|
B3/B- |
|
32,277,000 |
|
|||
12,000 |
|
Citizens Communications Co., 9.00%, 8/15/31 |
|
Ba3/BB+ |
|
12,930,000 |
|
|||
|
|
Hawaiian Telcom Communications, Inc., Ser. B, |
|
|
|
|
|
|||
12,225 |
|
9.75%, 5/1/13 (k) |
|
B3/CCC+ |
|
12,622,313 |
|
|||
7,000 |
|
12.50%, 5/1/15 |
|
Caa1/CCC+ |
|
7,385,000 |
|
|||
19,775 |
|
Insight Midwest L.P., 10.50%, 11/1/10 |
|
B2/B |
|
20,566,000 |
|
|||
|
|
Intelsat Bermuda Ltd. (d), |
|
|
|
|
|
|||
20,000 |
|
9.25%, 6/15/16 |
|
B2/B+ |
|
21,125,000 |
|
|||
18,000 |
|
11.25%, 6/15/16 |
|
Caa1/B |
|
19,215,000 |
|
|||
|
|
Intelsat Subsidiary Holding Co., Ltd., |
|
|
|
|
|
|||
3,050 |
|
8.25%, 1/15/13 |
|
B2/B+ |
|
3,103,375 |
|
|||
18,250 |
|
8.625%, 1/15/15 |
|
B2/B+ |
|
18,751,875 |
|
|||
8,600 |
|
Nordic Telephone Co. Holdings ApS, 8.875%, 5/1/16 (d) |
|
B2/B |
|
9,083,750 |
|
|||
11,000 |
|
Nortel Networks Ltd., 10.125%, 7/15/13 (d) |
|
B1/B- |
|
11,660,000 |
|
|||
14,625 |
|
PanAmSat Corp., 6.875%, 1/15/28 |
|
Ba2/BB |
|
12,943,125 |
|
|||
|
|
Qwest Capital Funding, Inc., |
|
|
|
|
|
|||
14,200 |
|
7.25%, 2/15/11 |
|
B3/B |
|
14,271,000 |
|
|||
46,500 |
|
7.90%, 8/15/10 |
|
B3/B |
|
48,011,250 |
|
|||
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
9.30.06 | PIMCO High Income Fund Semi-Annual Report 7
PIMCO High Income Fund Schedule of Investments
September 30, 2006 (unaudited) (continued)
Principal |
|
|
|
|
Credit
Rating |
|
Value |
|
||
|
|
|
|
|
|
|
|
|
||
Telecommunications (continued) |
|
|
|
|
|
|||||
|
|
Qwest Communications International, Inc., |
|
|
|
|
|
|||
$ |
15,275 |
|
7.50%, 2/15/14 |
|
B2/B |
|
$ |
15,389,563 |
|
|
23,750 |
|
7.50%, 2/15/14, Ser. B |
|
B2/B |
|
23,928,125 |
|
|||
|
|
Qwest Corp., |
|
|
|
|
|
|||
1,250 |
|
7.50%, 6/15/23 |
|
Aaa/BB |
|
1,243,750 |
|
|||
10,450 |
|
8.875%, 3/15/12 |
|
B3/BB |
|
11,455,812 |
|
|||
3,000 |
|
8.875%, 6/1/31 |
|
Aaa/BB |
|
3,142,500 |
|
|||
18,020 |
|
Rural Cellular Corp., 9.875%, 2/1/10 |
|
NR/CCC |
|
18,875,950 |
|
|||
9,400 |
|
Suncom Wireless, Inc., 8.50%, 6/1/13 |
|
Caa2/CCC- |
|
8,765,500 |
|
|||
12,400 |
|
Superior Essex Communications LLC, 9.00%, 4/15/12 |
|
B3/B |
|
12,648,000 |
|
|||
24,975 |
|
Time Warner Telecom Holdings, Inc., 9.25%, 2/15/14 |
|
B3/CCC+ |
|
26,411,062 |
|
|||
13,000 |
|
Wind Acquisition Finance S.A., 10.75%, 12/1/15 (d) |
|
B2/B- |
|
14,413,750 |
|
|||
9,000 |
|
Windstream Corp., 8.625%, 8/1/16 (d) |
|
Ba3/BB- |
|
9,675,000 |
|
|||
|
|
|
|
|
|
416,147,088 |
|
|||
Tobacco 0.7% |
|
|
|
|
|
|||||
18,000 |
|
Reynolds American, Inc., 7.75%, 6/1/18 (d) |
|
Caa1/BB |
|
18,884,106 |
|
|||
Transportation 0.3% |
|
|
|
|
|
|||||
|
|
Grupo Transportacion Ferroviaria Mexicana S.A. de C.V., |
|
|
|
|
|
|||
2,400 |
|
9.375%, 5/1/12 |
|
NR/B- |
|
2,556,000 |
|
|||
5,000 |
|
12.50%, 6/15/12 |
|
B3/B- |
|
5,525,000 |
|
|||
|
|
|
|
|
|
8,081,000 |
|
|||
Utilities 4.5% |
|
|
|
|
|
|||||
16,850 |
|
AES Corp., 8.75%, 5/15/13 (d) |
|
Ba3/BB- |
|
18,155,875 |
|
|||
2,000 |
|
Empresa Energetica de Sergipe and Sociedade Anonima de Eletrificaao da Paraiba, 10.50%, 7/19/13 (d) |
|
NR/B+ |
|
2,071,430 |
|
|||
3,220 |
|
Homer City Funding LLC, 8.137%, 10/1/19 |
|
Ba2/BB |
|
3,421,250 |
|
|||
19,450 |
|
Legrand Holding S.A., 8.50%, 2/15/25 |
|
Baa3/BB+ |
|
22,124,375 |
|
|||
|
|
Midwest Generation LLC, pass thru certificates, |
|
|
|
|
|
|||
16,761 |
|
8.30%, 7/2/09, Ser. A |
|
B1/BB- |
|
17,106,333 |
|
|||
24,877 |
|
8.56%, 1/2/16, Ser. B |
|
B1/BB- |
|
26,447,404 |
|
|||
1,500 |
|
8.75%, 5/1/34 |
|
Ba3/B+ |
|
1,608,750 |
|
|||
|
|
PSE&G Energy Holdings LLC, |
|
|
|
|
|
|||
21,500 |
|
8.50%, 6/15/11 |
|
Ba3/BB- |
|
23,005,000 |
|
|||
2,025 |
|
10.00%, 10/1/09 |
|
Ba3/BB- |
|
2,222,437 |
|
|||
3,147 |
|
Sithe Independence Funding Corp., 9.00%, 12/30/13, Ser. A |
|
Ba2/B |
|
3,394,546 |
|
|||
6,942 |
|
South Point Energy Center LLC, 8.40%, 5/30/12 (d) |
|
NR/D |
|
6,772,544 |
|
|||
|
|
|
|
|
|
126,329,944 |
|
|||
Waste Disposal 0.9% |
|
|
|
|
|
|||||
|
|
Allied Waste North America, Inc., |
|
|
|
|
|
|||
13,000 |
|
7.25%, 3/15/15 |
|
B2/BB- |
|
12,967,500 |
|
|||
11,823 |
|
9.25%, 9/1/12, Ser. B |
|
B2/BB- |
|
12,665,389 |
|
|||
|
|
|
|
|
|
25,632,889 |
|
|||
Total Corporate Bonds & Notes (cost-$2,373,851,240) |
|
|
|
2,422,601,693 |
|
|||||
|
|
|
|
|
|
|||||
SENIOR LOANS (a) (b) (c) 3.1% |
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
Building/Construction 0.2% |
|
|
|
|
|
|||||
£ |
3,000 |
|
Grupo Ferrovial S.A., 5.00%, 4/7/11, Term CL (e) (g) |
|
|
|
5,573,724 |
|
||
Chemicals 0.1% |
|
|
|
|
|
|||||
$ |
2,000 |
|
Ineos Group Ltd., 7.339%, 10/7/12, Term A |
|
|
|
2,011,876 |
|
||
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
8 PIMCO High Income Fund Semi-Annual Report | 9.30.06
PIMCO High Income Fund Schedule of Investments
September 30, 2006 (unaudited) (continued)
Principal |
|
|
|
|
|
|
Value |
|
||
|
|
|
|
|
|
|
|
|
||
Containers & Packaging 0.3% |
|
|
|
|
|
|||||
|
|
JSG Packaging, |
|
|
|
|
|
|||
|
431 |
|
5.562%, 1/12/13, Term B |
|
|
|
$ |
549,658 |
|
|
|
324 |
|
5.65%, 1/12/13, Term B |
|
|
|
413,382 |
|
||
|
1,049 |
|
5.741%, 11/29/13, Term B (g) |
|
|
|
1,338,191 |
|
||
|
287 |
|
5.754%, 1/12/13, Term B |
|
|
|
366,439 |
|
||
|
559 |
|
5.835%, 1/12/13, Term B (g) |
|
|
|
712,887 |
|
||
|
431 |
|
6.062%, 1/12/14, Term C |
|
|
|
549,658 |
|
||
|
287 |
|
6.09%, 1/12/14, Term C |
|
|
|
366,439 |
|
||
|
324 |
|
6.15%, 1/12/14, Term C |
|
|
|
413,381 |
|
||
|
1,049 |
|
6.241%, 11/29/14, Term C (g) |
|
|
|
1,341,931 |
|
||
|
559 |
|
6.335%, 1/12/14, Term C (g) |
|
|
|
714,878 |
|
||
$ |
750 |
|
7.882%, 11/29/13, Term B (g) |
|
|
|
755,052 |
|
||
750 |
|
8.382%, 11/29/14, Term C (g) |
|
|
|
755,052 |
|
|||
|
|
|
|
|
|
8,276,948 |
|
|||
Financial Services 0.1% |
|
|
|
|
|
|||||
|
1,200 |
|
UPC Holding BV, 7.75%, 1/15/14 |
|
|
|
1,463,096 |
|
||
Healthcare & Hospitals 0.3% |
|
|
|
|
|
|||||
$ |
9,476 |
|
HealthSouth Corp., 8.58%, 2/2/13 |
|
|
|
9,522,314 |
|
||
Oil & Gas 0.7% |
|
|
|
|
|
|||||
20,000 |
|
Ferrellgas L.P., 8.87%, 8/1/09 (g) |
|
|
|
20,882,827 |
|
|||
Recreation 0.2% |
|
|
|
|
|
|||||
|
|
Amadeus Global Travel, |
|
|
|
|
|
|||
|
2,699 |
|
5.628%, 4/8/12, Term A |
|
|
|
3,417,948 |
|
||
$ |
1,250 |
|
8.117%, 4/8/13, Term B |
|
|
|
1,259,801 |
|
||
1,250 |
|
8.617%, 4/8/14, Term C |
|
|
|
1,264,631 |
|
|||
|
|
|
|
|
|
5,942,380 |
|
|||
Telecommunications 1.0% |
|
|
|
|
|
|||||
|
|
Nordic Telephone, |
|
|
|
|
|
|||
|
5,000 |
|
8.25%, 5/1/16 |
|
|
|
6,872,117 |
|
||
|
2,300 |
|
8.25%, 5/1/16 (d) |
|
|
|
3,161,174 |
|
||
|
|
Nordic Telephone Co. Holdings ApS, |
|
|
|
|
|
|||
|
3,200 |
|
5.536%, 11/30/14, Term B |
|
|
|
4,092,460 |
|
||
|
3,200 |
|
6.036%, 11/30/14, Term C |
|
|
|
4,109,859 |
|
||
$ |
2,000 |
|
NTL Investment Holdings, Inc., 7.305%, 1/6/13, Term B (e) |
|
|
|
2,009,062 |
|
||
|
|
Weather Investments SARL (e), |
|
|
|
|
|
|||
|
3,000 |
|
5.505%, 6/17/12, Term A |
|
|
|
3,796,448 |
|
||
|
1,500 |
|
5.634%, 6/17/13, Term B |
|
|
|
1,904,875 |
|
||
|
1,500 |
|
6.134%, 6/17/14, Term C |
|
|
|
1,914,375 |
|
||
|
|
|
|
|
|
27,860,370 |
|
|||
Wholesale 0.2% |
|
|
|
|
|
|||||
|
|
Roundys, Inc., Term B |
|
|
|
|
|
|||
$ |
2,462 |
|
8.39%, 10/27/11 |
|
|
|
2,486,098 |
|
||
2,500 |
|
8.44%, 10/27/11 |
|
|
|
2,523,957 |
|
|||
|
|
|
|
|
|
5,010,055 |
|
|||
Total Senior Loans (cost-$84,659,115) |
|
|
|
86,543,590 |
|
|||||
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
9.30.06 | PIMCO High Income Fund Semi-Annual Report 9
PIMCO High Income Fund Schedule of Investments
September 30, 2006 (unaudited) (continued)
Principal |
|
|
|
|
Credit
Rating |
|
Value |
|
||||
MUNICIPAL BONDS 0.6% |
|
|
|
|
|
|||||||
|
|
|
|
|
|
|||||||
California 0.6% |
|
|
|
|
|
|||||||
|
|
Los Angeles Community Redevelopement Agency Rev., Ser. H, |
|
|
|
|
|
|||||
$ |
200 |
|
8.25%, 9/1/07 |
|
NR/NR |
|
$ |
199,306 |
|
|||
725 |
|
9.00%, 9/1/12 |
|
NR/NR |
|
748,911 |
|
|||||
1,160 |
|
9.75%, 9/1/17 |
|
NR/NR |
|
1,239,854 |
|
|||||
1,375 |
|
9.75%, 9/1/22 |
|
NR/NR |
|
1,467,675 |
|
|||||
2,170 |
|
9.75%, 9/1/27 |
|
NR/NR |
|
2,305,885 |
|
|||||
3,480 |
|
9.75%, 9/1/32 |
|
NR/NR |
|
3,691,271 |
|
|||||
|
|
San Diego Redevelopement Agency., Tax Allocation, |
|
|
|
|
|
|||||
1,785 |
|
6.59%, 11/1/13 |
|
Baa3/NR |
|
1,764,098 |
|
|||||
1,435 |
|
7.49%, 11/1/18 |
|
Baa3/NR |
|
1,476,816 |
|
|||||
1,885 |
|
7.74%, 11/1/21 |
|
Baa3/NR |
|
1,923,793 |
|
|||||
Total Municipal Bonds (cost-$14,699,584) |
|
|
|
14,817,609 |
|
|||||||
|
|
|
|
|
|
|||||||
PREFERRED STOCK 0.9% |
|
|
|
|
|
|||||||
|
|
|
|
|
|
|||||||
Shares |
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|||||
Financial Services 0.9% |
|
|
|
|
|
|||||||
24,700 |
|
Fresenius Medical Care Capital Trust II, 7.875%, UNIT |
|
B1/B+ |
|
25,194,000 |
|
|||||
Telecommunications 0.0% |
|
|
|
|
|
|||||||
155,565 |
|
Superior Essex Holding Corp., 9.50%, Ser. A |
|
NR/NR |
|
124,452 |
|
|||||
Total Preferred Stock (cost-$26,157,273) |
|
|
|
25,318,452 |
|
|||||||
|
|
|
|
|
|
|
|
|||||
SHORT-TERM INVESTMENTS 8.9% |
|
|
|
|
|
|||||||
|
|
|
|
|
|
|||||||
Principal |
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|||||
Sovereign Debt Obligations (e) 4.6% |
|
|
|
|
|
|||||||
Germany 4.6% |
|
|
|
|
|
|||||||
|
103,000 |
|
Bundesschatzanweisungen, 2.50%, 3/23/07 (cost-$130,467,421) |
|
Aaa/AAA |
|
129,905,423 |
|
||||
|
|
|
|
|
|
|
|
|
||||
Commercial Paper 1.8% |
|
|
|
|
|
|||||||
Financial Services 1.8% |
|
|
|
|
|
|||||||
$ |
28,300 |
|
Danske Corp., 5.27%, 12/27/06 |
|
P-1/A-1+ |
|
27,934,081 |
|
||||
22,000 |
|
UBS Finance LLC, 5.245%, 1/8/07 |
|
P-1/A-1+ |
|
21,677,700 |
|
|||||
Total Commercial Paper (cost-$49,622,254) |
|
|
|
49,611,781 |
|
|||||||
|
|
|
|
|
|
|||||||
U.S. Treasury Bills (i) 0.9% |
|
|
|
|
|
|||||||
26,350 |
|
4.615%-4.87%, 11/30/06-12/14/06 (cost-$26,095,272) |
|
|
|
26,061,431 |
|
|||||
|
|
|
|
|
|
|||||||
Corporate Bonds & Notes 0.4% |
|
|
|
|
|
|||||||
Financial Services 0.4% |
|
|
|
|
|
|||||||
10,000 |
|
Bombardier Capital, Inc., 7.09%, 3/30/07, Ser. AI (a) (b) |
|
NR/NR |
|
10,054,000 |
|
|||||
Telecommunications 0.0% |
|
|
|
|
|
|||||||
851 |
|
Calpoint Receivable Structured Trust, 7.44%, 12/10/06 (d) |
|
B3/NR |
|
857,206 |
|
|||||
Total Corporate Bonds & Notes (cost-$10,864,641) |
|
|
|
10,911,206 |
|
|||||||
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|||||||
10 PIMCO High Income Fund Semi-Annual Report | 9.30.06
PIMCO High Income Fund Schedule of Investments
September 30, 2006 (unaudited) (continued)
Principal |
|
|
|
|
|
|
Value |
|
|||
Repurchase Agreements 1.2% |
|
|
|
|
|
||||||
$ |
28,000 |
|
Lehman Brothers Holdings, |
|
|
|
$ |
28,000,000 |
|
||
4,803 |
|
State Street Bank & Trust Co., |
|
|
|
4,803,000 |
|
||||
Total Repurchase Agreements (cost-$32,803,000) |
|
|
|
32,803,000 |
|
||||||
Total Short-Term Investments (cost-$249,852,588) |
|
|
|
249,292,841 |
|
||||||
|
|
|
|
|
|
||||||
OPTIONS PURCHASED (j) 0.0% |
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Contracts/ |
|
|
|
|
|
|
|||||
|
|
|
|
|
|
||||||
Put Options 0.0% |
|
|
|
|
|
||||||
|
|
Eurodollar Futures, Chicago Mercantile Exchange, |
|
|
|
|
|
||||
1,346 |
|
strike price $90.25, expires 9/17/07 |
|
|
|
8,412 |
|
||||
1,483 |
|
strike price $91.25, expires 6/18/07 |
|
|
|
9,269 |
|
||||
1,544 |
|
strike price $91.75, expires 3/19/07 |
|
|
|
9,650 |
|
||||
55 |
|
strike price $93, expires 12/18/06 |
|
|
|
344 |
|
||||
408 |
|
strike price $93.25, expires 12/18/06 |
|
|
|
2,550 |
|
||||
Total Options Purchased (cost-$45,942) |
|
|
|
30,225 |
|
||||||
|
|
|
|
|
|
||||||
Total Investments before options written |
|
|
|
2,798,604,410 |
|
||||||
|
|
|
|
|
|
||||||
OPTIONS WRITTEN (j) (0.2)% |
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Call Options (0.1)% |
|
|
|
|
|
||||||
|
|
Swap Option 3 month LIBOR, Over the Counter, |
|
|
|
|
|
||||
21,400,000 |
|
strike rate 4.60%, expires 1/2/07 |
|
|
|
(10,422 |
) |
||||
|
|
U.S. Treasury Bond Futures, Chicago Board of Trade, |
|
|
|
|
|
||||
2,088 |
|
strike price $115, expires 2/23/07 |
|
|
|
(1,729,125 |
) |
||||
|
|
U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade, |
|
|
|
|
|
||||
1,752 |
|
strike price $111, expires 2/23/07 |
|
|
|
(492,750 |
) |
||||
|
|
|
|
|
|
(2,232,297 |
) |
||||
|
|
|
|
|
|
|
|
||||
Put Options (0.1)% |
|
|
|
|
|
||||||
|
|
Swap Option 3 month LIBOR, Over the Counter, |
|
|
|
|
|
||||
21,400,000 |
|
strike rate 5.90%, expires 1/2/07 |
|
|
|
(6,420 |
) |
||||
|
|
U.S. Treasury Bond Futures, Chicago Board of Trade, |
|
|
|
|
|
||||
2,088 |
|
strike price $110, expires 2/23/07 |
|
|
|
(1,892,250 |
) |
||||
|
|
U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade, |
|
|
|
|
|
||||
2,250 |
|
strike price $105, expires 11/21/06 |
|
|
|
(70,312 |
) |
||||
1,752 |
|
strike price $106, expires 2/23/07 |
|
|
|
(684,375 |
) |
||||
|
|
|
|
|
|
(2,653,357 |
) |
||||
Total Options Written (premiums received-$5,689,025) |
|
|
|
(4,885,654 |
) |
||||||
|
|
|
|
|
|
||||||
Total Investments net of options written |
|
|
|
$ |
2,793,718,756 |
|
|||||
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
9.30.06 | PIMCO High Income Fund Semi-Annual Report 11
PIMCO High Income Fund Schedule of Investments
September 30, 2006 (unaudited) (continued)
Notes to Schedule of Investments: (a) Private Placement. Restricted as to resale and may not have a readily available market. (b) Illiquid security. (c) These securities generally pay interest at rates which are periodically pre-determined by reference to a base lending rate plus a premium. These base lending rates are generally either the lending rate offered by one or more major European banks, such as the LIBOR or the prime rate offered by one or more major United States banks, or the certificate of deposit rate. These securities are generally considered to be restricted as the Fund is ordinarily contractually obligated to receive approval from the Agent bank and/or borrower prior to disposition. Remaining maturities of senior loans may be less than the stated maturities shown as a result of contractual or optional payments by the borrower. Such prepayments cannot be predicted with certainty. (d) 144A SecuritySecurity 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. (e) Delayed-delivery security. To be settled/delivered after September 30, 2006. (f) Security in default. (g) Fair-valued security. Securities with an aggregate value of $136,595,313, which represents 4.89% of total investments, have been fair valued. (h) Credit-linked trust certificate. (i) All or partial amount segregated as collateral for futures contracts and/or written options. (j) Non-income producing. (k) All or partial amount segregated as collateral for reverse repurchase agreements. |
||
|
|
|
Glossary: |
||
£ |
- |
British Pound Sterling |
|
- |
Euros |
LIBOR |
- |
London Inter-Bank Offered Rate |
NR |
- |
Not Rated |
REIT |
- |
Real Estate Investment Trust |
UNIT |
- |
More than one class of securities traded together. |
VRN |
- |
Variable Rate Note. The interest rate disclosed reflects the rate in effect on September 30, 2006. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12 PIMCO High Income Fund Semi-Annual Report | 9.30.06 | See accompanying Notes to Financial Statements.
PIMCO High Income Fund Statement of Assets and Liabilities
September 30, 2006 (unaudited)
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
Assets: |
|
|
|
||
Investments, at value (cost-$2,749,265,742) |
|
$ |
2,798,604,410 |
|
|
Cash (including foreign currency of $19,890,682 with a cost of $19,890,731) |
|
23,400,406 |
|
||
Receivable for investments sold |
|
231,038,055 |
|
||
Unrealized appreciation on swaps |
|
158,149,919 |
|
||
Interest receivable |
|
55,098,012 |
|
||
Premium for swaps purchased |
|
49,455,256 |
|
||
Premium receivable for swaps written |
|
1,739,612 |
|
||
Unrealized appreciation of forward foreign currency contracts |
|
204,603 |
|
||
Prepaid expenses |
|
91,612 |
|
||
Total Assets |
|
3,317,781,885 |
|
||
|
|
|
|
||
Liabilities: |
|
|
|
||
Payable for investments purchased |
|
379,820,868 |
|
||
Unrealized depreciation on swaps |
|
165,618,006 |
|
||
Due to broker for sold reverse repurchase agreements |
|
74,100,000 |
|
||
Payable for reverse repurchase agreements |
|
47,175,000 |
|
||
Premium payable for swaps written |
|
37,605,430 |
|
||
Dividends payable to common and preferred shareholders |
|
16,026,504 |
|
||
Options written, at value (premiums received - $5,689,025) |
|
4,885,654 |
|
||
Investment management fees payable |
|
1,490,818 |
|
||
Interest payable on reverse repurchase agreements |
|
1,452,565 |
|
||
Unrealized depreciation of forward foreign currency contracts |
|
1,182,011 |
|
||
Accrued expenses |
|
470,287 |
|
||
Payable for variation margin on futures contracts |
|
387,863 |
|
||
Premium payable for swaps purchased |
|
260,997 |
|
||
Total Liabilities |
|
730,476,003 |
|
||
Preferred shares ($25,000 net asset and liquidation value per share applicable to an aggregate of 36,000 shares issued and outstanding) |
|
900,000,000 |
|
||
Net Assets Applicable to Common Shareholders |
|
$ |
1,687,305,882 |
|
|
|
|
|
|
||
Composition of Net Assets Applicable to Common Shareholders: |
|
|
|
||
Common Stock: |
|
|
|
||
Par value ($0.00001 per share, applicable to 114,943,917 shares issued and outstanding) |
|
$ |
1,149 |
|
|
Paid-in-capital in excess of par |
|
1,635,602,665 |
|
||
Dividends in excess of net investment income |
|
(11,316,711 |
) |
||
Accumulated net realized gain |
|
17,762,073 |
|
||
Net unrealized appreciation of investments, futures contracts, options written, swaps and foreign currency transactions |
|
45,256,706 |
|
||
Net Assets Applicable to Common Shareholders |
|
$ |
1,687,305,882 |
|
|
Net Asset Value Per Common Share |
|
|
$14.68 |
|
|
See accompanying Notes to Financial Statements. | 9.30.06 | PIMCO High Income Fund Semi-Annual Report 13
PIMCO High Income Fund Statement of Operations
For the six months ended September 30, 2006 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Income: |
|
|
|
|
Interest (net of foreign withholding taxes of $5,205) |
|
$ |
107,163,102 |
|
Dividends |
|
979,952 |
|
|
Facility and other fee income |
|
646,209 |
|
|
Total Investment Income |
|
108,789,263 |
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
Investment management fees |
|
9,066,983 |
|
|
Interest expense on reverse repurchase agreements |
|