PIMCO has amended and restated its non-fundamental policy for ten closed-end funds with respect to investments in securities and instruments economically tied to emerging market countries including South Africa.

“The Boards of Trustees/Directors of the Funds approved the changes to the Funds’ investment policies based on representations from PIMCO that the changes will be in the best interests of the Funds and their shareholders,” PIMCO said in the statement.

Effective on or about December 22, 2014, PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO Dynamic Credit Income Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS & Income Fund, PIMCO High Income Fund, PIMCO Income Opportunity Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II and PIMCO Strategic Income Fund, have announced that they may invest up to 40% of its total assets in securities and instruments that are economically tied to emerging market countries.

In addition, each fund may invest without limitation in investment grade sovereign debt denominated in the relevant country’s local currency with less than one year remaining to maturity, subject to applicable law and any other restrictions described in the Fund’s prospectus, Statement of Information or shareholder reports in effect from time to time.

PIMCO Strategic Income Fund (RCS) will also rescind its current non-fundamental policy to invest not more than 3% of its total assets in securities of issuers and instruments that are economically tied to South Africa.

PIMCO said it believes that these changes will help to modernize RCS’s investment policies.

These policies were put in place at the Fund’s launch in 1994 and reflected that, at that time South Africa was undergoing significant political upheaval in connection with the ending of apartheid.

Over the past 20 years, “the political situation in South Africa has stabilized considerably”, said the asset manager.

Accordingly, PIMCO said it “no longer believes that these restrictions remain appropriate for RCS given the current market environment".