N-Q 1 a04-10498_1nq.htm N-Q

 

 

UNITED STATES

OMB APPROVAL

 

SECURITIES AND EXCHANGE
COMMISSION

OMB Number:
3235-0578

 

Washington, D.C. 20549

Expires: February 28,
2006

 

FORM N-Q

Estimated average burden
hours per response: 20.0

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act File Number: 811-10555

 

Registrant Name: PIMCO CORPORATE INCOME FUND INC.

 

Address of Principal Executive Offices: 1345 Avenue of the Americas New York, New York 10105

 

Name and Address of Agent for Service: Lawrence G. Altadonna – 1345 Avenue of the Americas New York, New York 10105

 

Registrant’s telephone number, including area code: 212-739-3371

 

Date of Fiscal Year End: 10/31

 

Date of Reporting Period: 7/31

 

Form N-Q is to be used by the registered management investment company, other than a small business investment company registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b 1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

 

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to the collection of information contained in Form N-Q 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 the 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. Schedule of Investments

 

PIMCO Corporate Income Fund

Schedule of Investments

July 31, 2004

(unaudited)

 

Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)

 

Value

 

 

 

 

 

 

 

 

 

 

 

CORPORATE BONDS & NOTES - 81.5%

 

 

 

 

 

 

 

Airlines - 4.3%

 

 

 

 

 

 

 

American Airlines, Inc., pass thru certificates,

 

 

 

 

 

3,606

 

6.978%, 4/1/11

 

Baa2/A-

 

$

3,568,905

 

 

 

Continental Airlines, Inc., pass thru certificates,

 

 

 

 

 

10,000

 

6.503%, 6/15/11, Ser. 01-1

 

Baa3/A

 

9,307,126

 

3,035

 

7.056%, 9/15/09, Ser. 99-2

 

Baa3/A

 

2,976,580

 

2,500

 

7.487%, 10/2/10, Ser.00-2

 

Baa3/A

 

2,424,903

 

4,330

 

Northwest Airlines Corp., pass thru certificates, 7.575%, 3/1/19, Ser. 992A

 

Baa2/A-

 

4,341,239

 

 

 

United Airlines, Inc., pass thru certificates,

 

 

 

 

 

6,500

 

6.201%, 9/1/08, Ser. 01-1

 

WR/NR

 

5,395,678

 

4,908

 

7.186%, 4/1/11, Ser. 00-2 (b)

 

WR/NR

 

4,070,133

 

5,600

 

7.73%, 7/1/10, Ser. 00-1 (a) (b)

 

WR/NR

 

4,571,692

 

700

 

United Airlines, Inc., 10.36%, 11/13/12, Ser. 91C (b)

 

WR/NR

 

301,000

 

 

 

 

 

 

 

36,957,256

 

 

 

Automotive - 2.1%

 

 

 

 

 

2,000

 

Auburn Hills Trust, 12.375%, 5/1/20

 

A3/BBB

 

2,951,178

 

2,000

 

DaimlerChrysler NA Holding Corp., 2.38625%, 9/26/05, Ser MTND (c)

 

A3/BBB

 

2,011,514

 

5,000

 

Ford Motor Co., 9.98%, 2/15/47

 

Baa1/BBB-

 

5,928,670

 

5,000

 

General Motors Corp. 8.375%, 7/5/33

 

Baa1/BBB

 

6,602,928

 

 

 

 

 

 

 

17,494,290

 

 

 

Banking - 1.3%

 

 

 

 

 

5,500

 

Colonial Bank, 9.375%, 6/1/11

 

Ba1/BBB-

 

6,491,562

 

1,700

 

Fifth Third Capital Trust I, 8.136%, 3/15/27, Ser A

 

Aa3/NR

 

1,892,510

 

1,000

 

Riggs Capital Trust, 8.625%, 12/31/26 Ser. A

 

Ba2/CCC+

 

1,067,500

 

1,750

 

Riggs National Corp., 9.65%, 6/15/09

 

Ba2/B-

 

2,021,250

 

 

 

 

 

 

 

11,472,822

 

 

 

Computer Services-0.1%

 

 

 

 

 

1,000

 

Electronic Data Systems Inc., 6.00%, 8/1/13 Ser. B

 

Ba1/BBB-

 

965,685

 

 

 

 

 

 

 

 

 

 

 

Containers - 0.4%

 

 

 

 

 

3,000

 

Ball Corp., 6.875%, 12/15/12

 

Ba3/BB

 

3,078,750

 

 

 

 

 

 

 

 

 

 

 

Diversified Manufacturing - 1.7%

 

 

 

 

 

4,000

 

Hutchison Whampoa International Ltd., 6.25%-6.50%, 2/13/13-1/24/14 (d)

 

A3/A-

 

3,957,818

 

8,574

 

Tyco International Group SA., 6.75%-7.00%, 2/15/11-6/15/28

 

Baa3/BBB

 

9,331,247

 

1030

 

Tyco International Group SA., 7.20%, 10/15/08

 

Ba3/BBB

 

1,166,393

 

 

 

 

 

 

 

14,455,458

 

 

 

Electronics - 1.0%

 

 

 

 

 

7,650

 

Ipalco Enterprises, Inc., 7.375%-7.625%, 11/14/08-11/14/11

 

Ba1/BB-

 

8,606,250

 

 

 

 

 

 

 

 

 

 

 

Energy - 5.2%

 

 

 

 

 

2,000

 

Duke Capital LLC., 6.25%, 2/15/13

 

Baa3/BBB-

 

2,091,472

 

4,995

 

East Coast Power LLC, 6.737%-7.066, 3/31/08-3/31/12, Ser B

 

Baa3/BBB-

 

5,079,156

 

1,000

 

Edison Mission Energy, 7.73%, 6/15/09

 

B1/B

 

1,037,500

 

2,500

 

Georgia Power Company, 1.43%, 2/17/09, Ser U (c)

 

A2A

 

2,501,548

 

5,000

 

MidAmerican Energy Hldgs., 5.875%, 10/1/12

 

Baa3/BBB-

 

5,141,015

 

2,000

 

Northern State Pwr., 8.00%, 8/28/12, Ser B

 

A2/A-

 

2,401,622

 

2,719

 

Sithe Independence Funding Corp., 9.00%, 12/30/13, Ser. A

 

Ba1/BBB-

 

3,039,646

 

1,000

 

Systems Energy Resources, 5.129%, 1/15/14 (a) (d)

 

Baa3/BBB

 

985,449

 

250

 

Transcontinental Gas Pipe Corp., 8.875%, 7/15/12

 

B1/B+

 

292,500

 

1,000

 

TXU Corp., 6.375%, 6/15/06, Ser. J

 

Ba1/BBB-

 

1,058,759

 

5,070

 

TXU Energy Co., 7.00%, 3/15/13

 

Baa2/BBB

 

5,578,151

 

15,000

 

Williams Cos., Inc., 7.125%-8.75%, 9/1/11-3/15/32

 

B3/B+

 

15,538,750

 

 

 

 

 

 

 

44,745,568

 

 

2


 

PIMCO Corporate Income Fund

Schedule of Investments

July 31, 2004

(unaudited) (continued)

 

Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)

 

Value

 

 

 

Financial Services - 4.4%

 

 

 

 

 

8,500

 

Beaver Valley Funding Corp., 9.00%, 6/1/17

 

Baa3/BB+

 

9,729,823

 

1,000

 

BlueWater Finance Ltd., 10.25%, 2/15/12

 

B1/B

 

1,055,000

 

10,000

 

Citigroup Inc., 4.875%, 5/7/15

 

Aa2/A+

 

9,581,460

 

1,000

 

Goldman Sachs Group, 1.72%, 1/9/07 Ser MTN1 (c)

 

Aa3/A+

 

1,001,455

 

1,300

 

Mizuho JGB Investment LLC 9.87%, 12/1/49 (d)

 

Baa3/B+

 

1,503,728

 

300

 

Mizuho Preferred Capital Co.,LLC, 8.79%, 12/1/49 (d)

 

Baa3/BB

 

338,625

 

1,000

 

Morgan Stanley, 1.73%, 1/12/07 (c)

 

Aa3/A+

 

1,001,669

 

2,378

 

Morgan Stanley, 1.52%, 4/15/16 (c) (d)

 

Aaa/AAA

 

2,380,833

 

3,000

 

Redwood Capital II Ltd.,  5.45%, 1/9/06 (a) (c) (d)

 

NR/BB+

 

3,027,270

 

5,000

 

Sets Trust No. 2002-3, 8.85%, 4/2/07 (a) (d)

 

NR/NR

 

5,441,699

 

2,750

 

Cox Communications STEERS-2002-26, 4.50813%, 5/19/05 (a) (c) (d)

 

NR/NR

 

2,430,804

 

 

 

 

 

 

 

37,492,366

 

 

 

Financing - 5.0%

 

 

 

 

 

7,500

 

Ford Motor Credit Co., 5.80%-7.25%, 1/25/07-10/1/13

 

A3/BBB-

 

7,814,957

 

1,180

 

General Electric Capital Corp., 8.30%, 9/20/09

 

Aaa/AAA

 

1,388,160

 

10,000

 

General Motors Acceptance Corp., 6.125%-6.875%, 8/28/07-9/15/11

 

A3/BBB

 

10,384,285

 

8,000

 

General Motors Acceptance Corp., 2.135%-2.88%, 10/20/05-5/18/06 Ser. MTN (c)

 

A3/BBB

 

8,035,638

 

4,950

 

Homer City Funding LLC., 8.137%, 10/1/19

 

Ba2/BB

 

5,346,000

 

6,265

 

Household Finance Corp., 7.20%-7.65%, 7/15/06-5/15/07

 

A1/A

 

6,765,124

 

2,500

 

PPL Capital Fund Trust I, 7.29%, 5/18/06

 

Ba1/BB+

 

2,623,425

 

 

 

 

 

 

 

42,357,589

 

 

 

Food & Beverage - 0.2%

 

 

 

 

 

2,000

 

Anheuser Busch Cos Inc., 5.00%, 3/1/19

 

A1/A+

 

1,899,584

 

 

 

 

 

 

 

 

 

 

 

Food Services - 0.8%

 

 

 

 

 

5,897

 

Yum! Brands, Inc., 8.875%, 4/15/11

 

Baa3/BBB-

 

7,180,783

 

 

 

 

 

 

 

 

 

 

 

Healthcare & Hospitals - 2.4%

 

 

 

 

 

6,470

 

HCA Inc.,8.70%- 9.00%, 2/10/10-12/15/14 Ser. MTN

 

Ba1/BBB-

 

7,633,737

 

7,000

 

HEALTHSOUTH Corp., 7.00%-8.375%, 6/15/08-10/1/11

 

WR/NR

 

6,800,000

 

1,510

 

Manor Care, Inc., 8.00%, 3/1/08

 

Baa3/BBB

 

1,708,188

 

5,000

 

Tenet Healthcare Corp., 6.375%, 12/01/11

 

B3/B-

 

4,487,500

 

 

 

 

 

 

 

20,629,425

 

 

 

Hotels/Gaming - 4.8%

 

 

 

 

 

 

 

Caesars Entertainment

 

 

 

 

 

4,000

 

7.875%-8.125%, 12/15/05-5/15/11

 

Ba2/BB-

 

4,332,500

 

3,000

 

8.50%, 11/15/06

 

Ba1/BB+

 

3,277,500

 

2,000

 

Harrah’s Operating Co., Inc., 8.00%, 2/1/11

 

Baa3/BBB-

 

2,255,164

 

2,000

 

Hilton Hotels Corp., 7.625%, 12/1/12

 

Ba1/BBB-

 

2,217,500

 

1,500

 

Host Marriot LP, 9.50%, 1/15/07, Ser. I

 

Ba3/B+

 

1,646,250

 

 

 

Mandalay Resort Group

 

 

 

 

 

2,471

 

6.45%-6.50%, 2/1/06-7/31/09

 

Ba2/BB+

 

2,553,663

 

500

 

9.375%, 2/15/10

 

Ba3/BB-

 

555,625

 

12,190

 

MGM Mirage, Inc., 6.75%-8.500%, 2/1/08-9/15/10

 

Ba1/BB+

 

13,299,625

 

 

 

Starwood Hotels & Resorts,

 

 

 

 

 

10,055

 

6.75%-7.875%, 11/15/05-11/15/15

 

Ba1/BB+

 

10,537,519

 

 

 

 

 

 

 

40,675,346

 

 

 

Insurance - 0.4%

 

 

 

 

 

2,300

 

Dai-Ichi Mutual Life, 5.73%, 3/17/14 (d)

 

NR/BBB+

 

2,249,846

 

1,500

 

Residential Reinsurance Ltd., 6.26%, 6/8/06 (a) (c) (d)

 

Ba2/BB+

 

1,505,782

 

 

 

 

 

 

 

3,755,628

 

 

 

Manufacturing - 0.1%

 

 

 

 

 

500

 

Dresser, Inc., 9.375%, 4/15/11

 

B2/B

 

543,750

 

 

 

 

 

 

 

 

 

 

 

Medical Products - 0.1%

 

 

 

 

 

1,000

 

Fresenius Medical Care AG, 7.875%, 6/15/11

 

Ba2/BB-

 

1,067,500

 

 

 

 

 

 

 

 

 

 

 

Metals & Mining - 0.4%

 

 

 

 

 

3,000

 

Noranda Inc., 7.25%, 7/15/12

 

Baa3/BBB-

 

3,253,665

 

 

 

 

 

 

 

 

 

 

 

Miscellaneous - 2.0%

 

 

 

 

 

5,546

 

Cedar Brakes II LLC., 8.50%-9.875%, 9/1/13-2/15/14

 

Caa1/CCC+

 

5,739,903

 

8,900

 

Merit Securities Corp., 7.88%, 12/28/33 (c)

 

Baa3/NR

 

9,088,082

 

2,000

 

Preferred Term Securities XIII, 2.11%, 3/24/34 (a) (c) (d)

 

Aaa/AAA

 

1,999,458

 

 

 

 

 

 

 

16,827,443

 

 

3


 

PIMCO Corporate Income Fund

Schedule of Investments

July 31, 2004

(unaudited) (continued)

 

Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)

 

Value

 

 

 

Multi-Media - 7.0%

 

 

 

 

 

5,105

 

British Sky Broadcasting Group, 6.875%-7.30%, 10/15/06-2/23/09

 

Baa3/BBB-

 

5,563,896

 

1,000

 

CF Cable TV, Inc., 9.125%, 7/15/07

 

Ba3/BB-

 

1,059,700

 

925

 

Continental Cablevision, Inc., 9.00%, 9/1/08

 

Baa3/BBB

 

1,081,128

 

 

 

CSC Holdings Inc.

 

 

 

 

 

6,625

 

8.125%, 8/15/09, Ser. B

 

B1/BB-

 

6,893,125

 

1,000

 

7.25%, 7/15/08

 

B1/BB-

 

1,020,000

 

 

 

Comcast Corp.,

 

 

 

 

 

8,500

 

6.50%-8.375%, 11/1/05-1/15/15

 

Baa3/BBB

 

9,052,108

 

2,250

 

10.625%, 7/15/12

 

Ba2/BBB-

 

2,839,514

 

6,000

 

DIRECTV Holdings Corp., 8.375%, 3/15/13

 

B1/BB-

 

6,750,000

 

1,610

 

News America, Inc., 6.75%, 1/9/38

 

Baa3/BBB-

 

1,770,792

 

7,450

 

News America Holdings Inc., 7.43%, 10/1/26

 

Baa3/BBB-

 

8,311,592

 

13,500

 

Time Warner Inc., 6.625%-9.125%, 1/15/13-5/1/32

 

Baa1/BBB+

 

15,565,926

 

 

 

 

 

 

 

59,907,781

 

 

 

Oil & Gas - 10.3%

 

 

 

 

 

1,000

 

AmeriGas Partners, LP, 8.875%, 5/20/11

 

B2/BB-

 

1,092,500

 

2,662

 

BP Amoco PLC, 10.875%, 7/15/05

 

Aa1/AA+

 

2,862,252

 

2,000

 

Cheaspeake Energy Corp., 8.375%, 11/1/08

 

Ba3/BB-

 

2,195,000

 

2,000

 

Florida Gas Transmission, 7.00%, 7/17/12 (d)

 

Baa2/BBB

 

2,068,848

 

3,000

 

Forest Oil Corp.,  8.00%, 6/15/08-12/15/11

 

Ba3/BB-

 

3,272,500

 

5,000

 

Gaz Capital SA, 8.625%, 4/28/34, Ser. REGS

 

Ba2e/BB-

 

4,966,730

 

3,750

 

Hanover Equip. Trust, 8.50%, 9/1/08, Ser. A

 

B2/B+

 

4,021,875

 

2,000

 

Kerr-McGee Corp., 8.125%, 10/15/05

 

Baa3/BBB

 

2,101,096

 

2,000

 

Marathon Oil Corp., 9.375%, 2/15/12

 

Baa1/BBB+

 

2,541,534

 

7,750

 

Pemex Project Funding Master Trust

 

 

 

 

 

 

 

8.00%-8.625%, 11/15/11-2/1/22

 

Baa1/BBB-

 

8,502,375

 

967

 

Perforadora Centrale SA., 4.92%, 12/15/18

 

NR/NR

 

969,415

 

3,500

 

Petroleos Mexicanos 9.50%, 9/15/27

 

Baa1/BBB-

 

4,051,250

 

4,915

 

Pioneer Natural Resource Co., 5.875%-6.50%, 1/15/08-7/15/16

 

Baa3/BBB-

 

4,999,587

 

1,300

 

Pogo Producing Co., 8.25%, 4/15/11, Ser. B

 

Ba3/BB

 

1,430,000

 

 

 

Center Point Energy

 

 

 

 

 

9,200

 

6.50%-7.75%, 2/1/08-2/15/11

 

Ba1/BBB

 

9,908,970

 

4,000

 

8.125%, 7/15/05, Ser. B

 

Ba1/BBB

 

4,200,456

 

300

 

SESI, LLC, 8.875%, 5/15/11

 

B1/BB-

 

325,500

 

10,000

 

TIERS Principal Protected Trust, 8.41%, 3/22/07 (a) (d) (g) (h)

 

Ba3/BB-

 

9,827,454

 

4,000

 

TXU Gas Capital I, 2.95%, 7/1/28 (c)

 

Ba1/BB+

 

3,938,960

 

5,000

 

Valero Energy Corp., 6.875%, 4/15/12

 

Baa3/BBB

 

5,501,925

 

5,000

 

Weatherford International, Inc., 6.625%, 11/15/11

 

Baa1/BBB+

 

5,511,350

 

3,500

 

XTO Energy Inc. 6.25%, 4/15/13

 

Baa3/BBB-

 

3,710,203

 

 

 

 

 

 

 

87,999,780

 

 

 

Paper/Paper Products - 2.7%

 

 

 

 

 

9,140

 

Boise Cascade Corp., 7.315%-9.45%, 2/1/08-11/1/09

 

Ba2/BB

 

10,557,081

 

6,662

 

Donohue Forest Products 7.625%, 5/15/07

 

Ba2/BB

 

6,928,480

 

4,000

 

Georgia-Pacific Corp., 8.125%-8.25%, 5/15/11-6/15/23

 

Ba3/BB+

 

4,177,500

 

500

 

International Paper Co., 6.75%, 9/1/11

 

Baa2/BBB

 

546,170

 

850

 

Norske Skogindustrier ASA, 6.125%, 10/15/15 (d)

 

Baa3/BBB-

 

844,745

 

 

 

 

 

 

 

23,053,976

 

 

 

Pharmaceuticals-0.4%

 

 

 

 

 

3,500

 

Wyeth, 5.50%-6.50%, 2/1/14-2/1/34

 

Baa1/A

 

3,378,135

 

 

 

 

 

 

 

 

 

 

 

Pipelines - 0.5%

 

 

 

 

 

 

 

Dynergy-Roseton Danskamme,

 

 

 

 

 

1,750

 

7.27%, 11/8/10, Ser. A

 

Caa2/B

 

1,706,250

 

3,000

 

7.67%, 11/8/16, Ser. B

 

Caa2/B

 

2,655,000

 

 

 

 

 

 

 

4,361,250

 

 

 

Printing/Publishing - 0.5%

 

 

 

 

 

4,750

 

Quebecor World Inc., 6.125%, 11/15/13

 

Baa3/BBB-

 

4,594,366

 

 

 

 

 

 

 

 

 

 

 

Retail - 1.2%

 

 

 

 

 

5,000

 

Delhaize America Inc., 8.125%, 4/15/11

 

Ba1/BB+

 

5,568,680

 

1,000

 

Hertz Corp., 7.625%, 6/1/12

 

Baa2/BBB-

 

1,059,604

 

3,000

 

Ingles Markets, Inc., 8.875%, 12/1/11

 

Ba3/B+

 

3,165,000

 

 

 

 

 

 

 

9,793,284

 

 

4


 

PIMCO Corporate Income Fund

Schedule of Investments

July 31, 2004

(unaudited) (continued)

 

Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)

 

Value

 

 

 

Telecommunications - 13.7%

 

 

 

 

 

17,500

 

AT&T Corp., 7.30%-8.00%, 11/15/11-11/15/31

 

Ba1/BB+

 

17,928,570

 

8,000

 

Citizens Communications Co., 7.60%-9.25%, 6/1/06-5/15/11

 

Ba3/BB+

 

8,512,117

 

10,000

 

Deutsche Telekom International, 8.00%, 6/15/10

 

Baa2/BBB+

 

11,808,520

 

3,900

 

Echostar DBS Corp., 9.125%-10.375%, 10/1/07-1/15/09

 

Ba3/BB-

 

4,226,625

 

10,500

 

France Telecom, 7.75%-8.50%, 3/1/11-3/1/31

 

Baa2/BBB+

 

12,321,168

 

1,353

 

MCI Communications Corp., 5.908%-7.735% 5/1/07-5/1/14

 

NR/NR

 

1,264,247

 

5,000

 

Nextel Communications Inc., 6.875%-7.375%, 10/31/13-8/1/15

 

Ba3/BB

 

5,170,000

 

 

 

PanAmSat Corp.,

 

 

 

 

 

2,000

 

6.125%, 1/15/05

 

WR/BB

 

2,040,000

 

1,250

 

6.375%, 1/15/08

 

Ba3/BB+

 

1,267,187

 

4,000

 

8.50%, 2/1/12

 

WR/B+

 

4,635,000

 

750

 

PCCW-HKT Capital II Ltd., 6.00%, 7/15/13 (d)

 

Baa2/BBB

 

752,748

 

12,860

 

Qwest Capital Funding, 7.25%, 2/15/11

 

Caa2/B

 

11,123,900

 

23,900

 

Sprint Capital Corp. (FON Group), 6.125%-7.625%, 11/15/08-11/15/28

 

Baa3/BBB-

 

25,733,939

 

8,969

 

Verizon Global Funding Corp.,6.875%- 7.25%, 12/1/10-6/15/12

 

A2/A+

 

10,035,438

 

 

 

 

 

 

 

116,819,459

 

 

 

 

 

 

 

 

 

 

 

Utilities - 5.9%

 

 

 

 

 

2,000

 

CMS Energy Corp., 8.90%, 7/15/08

 

B3/B+

 

2,145,000

 

500

 

Consumers Energy, Inc., 6.375%, 2/1/08 (d)

 

Baa3/BBB-

 

533,872

 

6,000

 

First Energy Corp., 7.375%, 11/15/31

 

Baa3/BB+

 

6,503,448

 

4,500

 

Kansas Gas & Electric Co., 6.20%, 1/15/06

 

Ba1/BBB

 

4,657,554

 

4,000

 

Midwest Generation, Inc., pass thru certificates, 8.56%, 1/2/16, Ser B

 

B1/B

 

4,160,000

 

4,000

 

Pacific Gas & Electric Corp., 2.30%, 4/3/06 (c)

 

Baa2/BBB

 

4,002,120

 

 

 

PSE&G Energy Holdings,

 

 

 

 

 

10,960

 

8.50%-8.625%, 2/15/08-6/15/11

 

Ba3/BB-

 

11,946,400

 

1,500

 

5.50%, 12/1/15

 

Baa1/BBB

 

1,457,919

 

2,000

 

Potomac Electric Power , 6.25%, 10/15/07

 

A3/A-

 

2,144,148

 

500

 

Public Service Electric & Gas, 4.00%, 11/1/08, Ser. MTNC

 

A3/A-

 

496,969

 

3,500

 

Southern California Edison Co., 8.00%, 2/15/07

 

A3/BBB

 

3,874,076

 

5,542

 

South Point Energy Center, 8.40%, 5/30/12 (d)

 

B2/B

 

4,766,311

 

3,500

 

Tucson Electric Power, 7.50%, 8/1/08, Ser. B

 

Ba2/BBB-

 

3,707,854

 

 

 

 

 

 

 

50,395,671

 

 

 

Waste Management - 2.6%

 

 

 

 

 

6,745

 

Allied Waste North America,

 

 

 

 

 

 

 

7.625%-9.25%, 1/1/06-9/1/12, Ser. B

 

Ba3/BB-

 

7,370,263

 

13,000

 

Waste Management, Inc., 7.375%-7.65%, 8/1/10-3/15/11

 

Baa3/BBB

 

14,757,876

 

 

 

 

 

 

 

22,128,139

 

 

 

 

 

 

 

 

 

 

 

Total Corporate Bonds & Notes (cost-$676,816,902)

 

 

 

695,890,999

 

 

 

 

 

 

 

 

 

 

 

SOVEREIGN DEBT OBLIGATIONS - 4.0%

 

 

 

 

 

 

 

Brazil - 0.3%

 

 

 

 

 

3,008

 

Federal Republic of Brazil, 8.00%, 4/15/14

 

B2/B+

 

2,861,410

 

 

5


 

PIMCO Corporate Income Fund

Schedule of Investments

July 31, 2004

(unaudited) (continued)

 

Principal
Amount
(000)

 

 

 

Credit Rating
(Moody’s/S&P)

 

Value

 

 

 

SOVEREIGN DEBT OBLIGATIONS-(continued)

 

 

 

 

 

 

 

Guatemala - 0.3%

 

 

 

 

 

2,000

 

Republic of Guatemala, 9.25%, 8/1/13 (d)

 

Ba2/BB-

 

2,175,000

 

 

 

 

 

 

 

 

 

 

 

Panama - 1.3%

 

 

 

 

 

9,570

 

Republic of Panama, 9.375%-9.625%, 2/8/11-7/23/12

 

Ba1/BB

 

10,752,675

 

 

 

 

 

 

 

 

 

 

 

Peru - 1.5%

 

 

 

 

 

12,090

 

Republic of Peru, 9.125%-9.875%, 2/21/12-2/6/15

 

Ba3/BB-

 

12,893,875

 

 

 

 

 

 

 

 

 

 

 

Russia - 0.1%

 

 

 

 

 

862

 

Russian Federation, 5.00%, 3/31/30 Ser. REGS

 

Ba3/BB

 

793,557

 

 

 

 

 

 

 

 

 

 

 

South Africa - 0.4%

 

 

 

 

 

3,120

 

Republic of South Africa, 7.375%-9.125%, 5/19/09-4/25/12

 

Baa2/BBB

 

3,642,150

 

 

 

 

 

 

 

 

 

 

 

Ukraine Republic - 0.1%

 

 

 

 

 

1,060

 

Republic of Ukraine, 11.00%, 3/15/07

 

B1/B

 

1,086,304

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Sovereign Debt Obligations (cost-$34,957,729)

 

 

 

34,204,971

 

 

 

 

 

 

 

 

 

 

 

MORTGAGE-BACKED SECURITIES - 2.9%

 

 

 

 

 

372

 

Ameriquest Mortgage Securities Inc., 1.86%, 2/25/33

 

Aaa/AAA

 

373,675

 

3,500

 

Chase Commercial Mortgage Securities Corp.,

 

 

 

 

 

 

 

6.887%, 10/15/32 (a) (d)

 

NR/BB+

 

3,426,033

 

1,890

 

CS First Boston Mortgage Securities Corp.,

 

 

 

 

 

 

 

1.42%, 5/25/43 (a) (d)

 

NR/BB+

 

1,891,574

 

 

 

Lehman Brothers Floating Rate Commercial Mortgage Trust,

 

 

 

 

 

3,000

 

2.44%, 11/19/12 (a) (d)

 

NR/BBB

 

3,001,560

 

3,000

 

2.74%, 11/19/12 (a) (d)

 

NR/BBB+

 

2,995,620

 

7,374

 

GSMPS Mortgage Loan Trust., 7.50%, 6/19/27 (a) (d)

 

NR/NR

 

7,852,168

 

 

 

Merrill Lynch Mortgage Investors, Inc.,

 

 

 

 

 

2,000

 

7.38%, 2/15/30

 

Baa1/BBB-

 

2,191,998

 

2,805

 

7.15%, 2/15/30

 

Baa3/BBB

 

3,008,560

 

 

 

 

 

 

 

 

 

 

 

Total Mortgage-Backed Securities (cost-$24,705,406)

 

 

 

24,741,188

 

 

 

 

 

 

 

 

 

 

 

SENIOR LOANS (a) (c) (e) - 2.4%

 

 

 

 

 

 

 

Containers - 0.5%

 

 

 

 

 

3,000

 

Owens-Illinois Group, Inc., 3.87%, 4/1/08

 

NR/NR

 

3,046,251

 

1,606

 

Stone Container Corp., 3.625%, 6/30/09

 

NR/NR

 

1,624,466

 

 

 

 

 

 

 

4,670,717

 

 

 

Energy - 0.2%

 

 

 

 

 

1,429

 

AES Corp. 5.13%-5.32%, 7/29/08

 

NR/NR

 

1,448,980

 

 

 

 

 

 

 

 

 

 

 

Multi-Media - 0.3%

 

 

 

 

 

2,500

 

Adelphia Century Cable 4.87%, 6/30/09 (a)

 

NR/NR

 

2,423,178

 

 

 

 

 

 

 

 

 

 

 

Printing/Publishing - 0.2%

 

 

 

 

 

1,496

 

Readers Digest Association Inc., 3.57%, 5/20/08

 

NR/NR

 

1,521,733

 

*

 

RH Donnelley Corp., 7.25%, 6/30/10

 

NR/NR

 

103

 

 

 

 

 

 

 

1,521,836

 

 

 

Telecommunications - 1.2%

 

 

 

 

 

1,701

 

Dex Media East LLC,  3.10%-3.30%, 5/8/09 (JPMorgan Chase Bank)

 

NR/NR

 

1,729,728

 

9,000

 

Qwest Corp., 7.25%, 2/15/11 (a)

 

NR/NR

 

8,730,000

 

 

 

 

 

 

 

10,459,728

 

 

 

 

 

 

 

 

 

 

 

Total Senior Loans (cost-$20,156,672)

 

 

 

20,524,439

 

 

6


PIMCO Corporate Income Fund

Schedule of Investments

July 31, 2004

(unaudited) (continued)

Principal
Amount/Shares(000)

 

 

 

Credit Rating
(Moody’s/S&P)

 

Value

 

 

 

U.S. GOVERNMENT AGENCY SECURITIES - 3.0%

 

 

 

 

 

22,500

 

Fannie Mae 5.00%, 12/1/99

 

Aaa//AAA

 

21,937,500

 

3,128

 

Freddie Mac 7.5%, 10/25/43

 

Aaa//AAA

 

3,382,216

 

 

 

Total U.S. Government Agency Securities (cost-$25,341,519)

 

 

 

25,319,716

 

 

 

 

 

 

 

 

 

 

 

PREFERRED STOCK- 0.4%

 

 

 

 

 

 

 

Medical Products - 0.4%

 

 

 

 

 

3

 

Fresenius Medical Capital Trust II (cost-$3,674,550)

 

Ba2/BB-

 

3,604,000

 

 

 

 

 

 

 

 

 

 

 

SHORT-TERM INVESTMENTS - 5.9%

 

 

 

 

 

 

 

CORPORATE NOTES - 3.1%

 

 

 

 

 

 

 

Airlines - 0.4%

 

 

 

 

 

4,011

 

United Airlines, Inc., pass thru certificates, 1.39%, 3/2/04, Ser. 97A, (c)

 

WR/NR

 

3,222,372

 

 

 

 

 

 

 

 

 

 

 

Electronics - 0.9%

 

 

 

 

 

7,690

 

Edison International, Inc., 6.875%, 9/15/04

 

Baa3/BB+

 

7,728,450

 

 

 

 

 

 

 

 

 

 

 

Energy - 0.2%

 

 

 

 

 

1,850

 

PG&E Gas Transmission,  7.10%, 6/1/05

 

Ba1/CC

 

1,921,687

 

 

 

 

 

 

 

 

 

 

 

Financing - 0.4%

 

 

 

 

 

3,000

 

Bombardier Capital, Inc., 7.50%, 8/15/04 (a) (d)

 

WR/NR

 

3,003,612

 

654

 

Midland Funding II, 11.75%, 7/23/05 Ser. A

 

Ba3/BB-

 

704,256

 

 

 

 

 

 

 

3,707,868

 

 

 

 

 

 

 

 

 

 

 

Food Services - 0.0%

 

 

 

 

 

300

 

Yum! Brands, Inc., 7.45%, 5/15/05

 

Baa3/BBB-

 

310,821

 

 

 

 

 

 

 

 

 

 

 

Hotels/Gaming - 0.1%

 

 

 

 

 

450

 

MGM Mirage, Inc., 6.625%, 2/1/05

 

Ba1/BB+

 

460,125

 

 

 

 

 

 

 

 

 

 

 

Multi-Media - 0.8%

 

 

 

 

 

6,350

 

Rogers Cablesystems Inc.,  10.00%, 3/15/05 Ser. B.

 

Ba2/BBB-

 

6,619,367

 

 

 

 

 

 

 

 

 

 

 

Transport Services - 0.3%

 

 

 

 

 

2,125

 

FedEx Corp., 1.39%, 4/1/05 (d) (e)

 

Baa2/BBB

 

2,127,529

 

 

 

 

 

 

 

 

 

 

 

Utilities - 0.0%

 

 

 

 

 

200

 

Conectiv Inc., 5.30%, 6/1/05 Ser. B.

 

Baa2/BBB

 

203,635

 

 

 

 

 

 

 

 

 

 

 

Total Corporate Notes (cost-$26,921,805)

 

 

 

26,301,854

 

 

 

 

COMMERCIAL PAPER – 1.5%

 

 

 

 

 

 

 

Banking – 1.4%

 

 

 

 

 

6,200

 

CDC Commercial Paper Inc., 1.26% – 1.67% 4/12/10 – 4/9/22

 

NR/NR

 

5,175,720

 

6,800

 

Danske Corp., 1.025%, 6/21/04

 

P-1/A-1+

 

6,778,308

 

 

 

 

 

 

 

11,954,028

 

 

 

 

 

 

 

 

 

 

 

Financing – 0.1%

 

 

 

 

 

600

 

Toyota Motor Credit Co., 1.48%, 4/9/22

 

NR/NR

 

598,742

 

 

 

 

 

 

 

 

 

 

 

Total Commercial Paper (cost-$12,554,864)

 

 

 

12,552,770

 

 

 

 

 

 

 

 

 

 

 

U.S. TREASURY BILLS (h) – 0.3%

 

 

 

 

 

3,000

 

1.135% – 1.29%, 4/9/16 (cost–$2,995,878)

 

Aaa/AAA

 

2,995,878

 

 

 

 

 

 

 

 

 

 

 

REPURCHASE AGREEMENTS – 1.0%

 

 

 

 

 

8,343

 

State Street Bank & Trust Co., dated 7/30/04, 0.90%, due 8/2/04 proceeds 8,343,626 collaterlized by Fannie Mae, 1/15/05; valued at $8,510,316
(cost-$8,343,000)

 

 

 

8,343,000

 

 

 

 

 

 

 

 

 

 

 

Total Short-Term Investments (cost-$50,815,547)

 

 

 

50,193,502

 

 

Contracts

 

 

 

 

 

 

 

 

 

PUT OPTIONS PURCHASED (i) - 0.0%

 

 

 

 

 

100,000

 

Swap Options, iBoxx High Volatility
strike rate 1.60%, expires 12/20/04

 

 

 

371,050

 

 

 

 

 

 

 

 

 

 

 

Total Put Options Purchased (premiums paid-$450,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investments, before call options written (cost-$836,918,325) – 100.1%

 

 

 

854,849,865

 

 

7


 

PIMCO Corporate Income Fund

Schedule of Investments

July 31, 2004

(unaudited) (continued)

 

Contracts

 

 

 

 

 

Value

 

 

 

CALL OPTIONS WRITTEN (i) -(0.1)%

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,450

)

News America Holdings, strike price $100, expires 10/1/06

 

 

 

$

(328,381

)

(100,000

)

Swap Options, iBoxx High Volatility
strike rate 1.30%, expires 12/20/04

 

 

 

(406,630

)

 

 

 

 

 

 

 

 

 

 

Total Call Options Written (premiums received-$450,000)

 

 

 

(735,011

)

 

 

 

 

 

 

 

 

 

 

Total Investments, net of call options written (cost-$836,468,325) – 100%

 

 

 

$ 854,114,854

 

 

*                 Represents less than 500 shares

(a)          Illiquid security.

(b)         Security in default.

(c)          Floating Rate Security. Interest rate shown is the rate in effect at July 31, 2004.

(d)         144A Security - security exempt from registration under Rule 144A of the Securities Act of 1933.

(e)          Private Placement. Restricted as to resale and does not have a readily available market.

(f)            Participation interests were acquired through the financial institution indicated parenthetically.

(g)         Fair valued security.

(h)         All or partial amount segregated as initial margin on futures contracts.

(i)             Non-income producing security

 

Glossary:

NR - Not Rated

WR - Withdrawn Rating

 

8


 

Item 2. Controls and Procedures

 

(a)           The registrant’s President and Chief Executive Officer and Principal Financial Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940, as amended are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

 

(b)          There were no significant changes in the registrant’s internal controls or in factors that could affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

 

Item 3. Exhibits

(a) Exhibit 99.302 Cert. – Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Registrant: PIMCO Corporate Income Fund Inc.

 

By

/s/ Brian S. Shlissel

 

President & Chief Executive Officer

 

Date: September 29, 2004

 

By

/s/ Lawrence G. Altadonna

 

Treasurer, Principal Financial & Accounting Officer

 

Date: September 29, 2004

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dated indicated.

 

By

/s/ Brian S. Shlissel

 

President & Chief Executive Officer

 

Date: September 29, 2004

 

By

/s/ Lawrence G. Altadonna

 

Treasurer, Principal Financial & Accounting Officer

 

Date: September 29, 2004

 

9