NEW YORK, Nov. 21, 2006 (PRIMEZONE) -- Allianz Global Investors Fund Management LLC ("AGIFM"), investment manager to Municipal Advantage Fund Inc. (the "Fund") (NYSE:MAF), announced that at a meeting held today, the Board of Directors of the Fund approved a change of the Fund's sub-advisor to Pacific Investment Management Company LLC ("PIMCO"). PIMCO will replace Oppenheimer Capital LLC, beginning December 1, 2006, on an interim basis, pending full shareholder approval. It is anticipated that the Board will bring the proposal to approve PIMCO as sub-advisor on a permanent basis before shareholders at the next annual meeting, which is in February 2007. The change does not impact the management fees paid by the Fund.
Mark McCray, Executive Vice President at PIMCO, will be the lead portfolio manager for the Fund. Mr. McCray is responsible for PIMCO's municipal bond funds and is the portfolio manager for PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II and PIMCO Municipal Income Fund III, as well as several state-specific municipal closed-end funds managed by AGIFM and sub-advised by PIMCO. As of October 31, 2006, Mr. McCray was responsible for overseeing municipal assets of $10.2 billion.
In connection with the change of sub-advisor, the Board has approved certain changes to the investment policies of the Fund, including:
-- Permitting the Fund to invest up to 20% of its net assets in
municipal bonds that are rated Ba/BB or B or that are unrated
but judged to be of comparable quality by PIMCO;
-- Permitting the Fund to invest in structured notes, swaps,
variable and floating rate securities without limit, but
consistent with the Fund's investment objective;
-- Permitting the Fund to invest up to 10% of its total assets in
residual interest municipal bonds (RIBS);
-- Eliminating any requirements to dispose of a security in the
event of a downgrade of that security;
-- Permitting the Fund to use derivative instruments to add
leverage, for risk management purposes or as part of its
investment strategies;
-- Seeking to avoid bonds generating interest potentially
subjecting investors to the federal alternative minimum tax,
although PIMCO may not always be successful in this regard.
The Fund is a closed-end management investment company that seeks to provide a high level of current income which is exempt from regular federal income taxes. At October 31, 2006, the Fund's net assets were $161.6 million, inclusive of the preferred shares issued and outstanding. AGIFM, 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). Oppenheimer Capital and PIMCO are affiliates of AGIFM.
The Fund's daily New York Stock Exchange closing price, the latest available net asset value per share as well as other information is available by calling the Fund's shareholder servicing agent at 1-800-331-1710. In addition, this information plus updated portfolio statistics and performance is available at http://www.allianzinvestors.com/closedendfunds.
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.