NEW YORK, Oct. 31, 2008 (GLOBE NEWSWIRE) -- The Board of Directors of PIMCO Municipal Advantage Fund Inc. (the "Fund'') (NYSE:MAF), a closed-end management investment company, announced today that it has considered possible ways of providing liquidity at net asset value ("NAV") to common stockholders under the Fund's discount policy, which was adopted in February 2008, and has determined to defer action in light of current unprecedented market conditions. Under the discount policy, if the Fund's common shares trade at an average discount to NAV of greater than 0% over any calendar quarter beginning with the quarter ended September 30, 2008, the Board has committed to take action promptly, subject to its fiduciary obligations, to enable the Fund's common stockholders to realize NAV for their shares. For the quarter ended September 30, 2008, the Fund's common shares traded at an average discount to their NAV of approximately -2.45%.
Following the September 30 quarter-end, the Board convened a meeting to consider possible actions. The Board was advised by the Fund's sub-adviser that current market conditions, which include unprecedented volatility and dislocations in the municipal bond market, create substantial uncertainties regarding various actions that would permit common stockholders to realize NAV at this time. In particular, the sub-adviser indicated that options such as a direct Fund liquidation or merger would involve liquidating a substantial portion or all of the Fund's portfolio securities and would not be advisable under current market conditions.
Taking this and other factors into account, the Board determined that it is in the best interests of the Fund and its stockholders to defer taking any action under the discount policy at this time. The Board and the Fund's investment manager and sub-adviser will continue to monitor market conditions and the Fund's holdings closely as they work to develop viable options for implementing the discount policy. A public announcement will be disseminated once the Board has made a determination as to the form and timing of action to be taken under the discount policy.
Allianz Global Investors Fund Management LLC, an indirect, wholly-owned subsidiary of Allianz Global Investors of America L.P., serves as the Fund's investment manager and is a member of Munich-based Allianz Group (NYSE:AZ). Pacific Investment Management Company LLC, an Allianz Global Investors Fund Management affiliate, serves as the Fund's sub-adviser.
The Fund's daily New York Stock Exchange closing price and net asset value per share is available, by calling the Fund's shareholder servicing agent at (800) 331-1710. This information, as well as updated portfolio statistics and performance, is available at http://www.allianzinvestors.com.
Statements made in this release that look forward in time involve risks and uncertainties and are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such risks and uncertainties include, without limitation, the adverse effect from a decline in the securities markets or a decline in the Fund's performance, a general downturn in the economy, competition from other companies, changes in government policy or regulation, inability to attract or retain key employees, inability to implement its operating strategy and/or acquisition strategy, and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations.