Pimco High Income Fund said it is postponing payment of a dividend because the value of the fund's portfolio securities fell below a key threshold due to current market conditions.
The fund was scheduled to make a payment Monday of 12.1875 cents per share to shareholders of record as of Oct. 11. Allianz Global Investors Fund Management LLC manages the fund.
The company also said it is suspending the declaration of its next dividend, which would have been paid in December.
The dividends are being suspended based on a company rule that requires a postponement of payments if the fund's auction rate preferred shares minimum asset coverage falls below 200 percent. Because of the ongoing credit crisis and decline in equity markets, the value of the fund's portfolio securities fell below the threshold leading to a suspension of dividends.
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