N-Q 1 dnq.htm PACIFIC AMERICAN INCOME SHARES, INC. FORM N-Q PACIFIC AMERICAN INCOME SHARES, INC. FORM N-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number: 811-02351

 

Name of Fund:

Pacific American Income Shares, Inc.

 

Fund Address:

385 East Colorado Boulevard

Pasadena, CA 91101

 

Name and address of agent for service:

Richard M. Wachterman, Esq.

Legg Mason Wood Walker, Incorporated

100 Light Street

Baltimore, MD 21202

 

Registrant’s telephone number, including area code: (626) 844 9400

 

Date of fiscal year end: 12/31/2005

 

Date of reporting period: 3/31/2005

 



Item 1 – Schedule of Investments


Portfolio of Investments

 

March 31, 2005 (Unaudited)

 

(Amounts in Thousands)

 

Pacific American Income Shares

 


 

     Rate     Maturity
Date
   Par/
Shares
   Value  

Long-Term Securities — 97.6%

                          

Corporate Bonds and Notes — 66.1%

                          

Aerospace/Defense — 1.2%

                          

L-3 Communications Corp.

   7.625 %   6/15/12    $ 275    $ 292  

Raytheon Company

   5.375 %   4/1/13      905      918 A

Systems 2001 Asset Trust

   6.664 %   9/15/13      468      508 B
                      


                         1,718  
                      


Auto Parts and Equipment — 0.2%

                          

American Axle & Manufacturing Inc.

   5.250 %   2/11/14      300      268 A
                      


Automotive — 1.1%

                          

Ford Motor Company

   7.450 %   7/16/31      600      543 A

Ford Motor Company

   8.900 %   1/15/32      260      263  

General Motors Corporation

   8.250 %   7/15/23      190      164  

General Motors Corporation

   8.375 %   7/15/33      760      650 A
                      


                         1,620  
                      


Banking and Finance — 8.7%

                          

AIFUL Corporation

   4.450 %   2/16/10      155      151 B

Boeing Capital Corporation

   5.800 %   1/15/13      500      523 A

Ford Motor Credit Company

   6.500 %   1/25/07      2,540      2,566  

Ford Motor Credit Company

   7.375 %   10/28/09      1,425      1,431  

Ford Motor Credit Company

   7.375 %   2/1/11      510      506  

Ford Motor Credit Company

   7.250 %   10/25/11      1,615      1,594  

Ford Motor Credit Company

   7.000 %   10/1/13      70      68 A

Mizuho Co., Ltd.

   9.870 %   12/31/49      620      707 B

General Motors Acceptance Corporation

   6.125 %   8/28/07      2,550      2,487 A

General Motors Acceptance Corporation

   5.625 %   5/15/09      510      465 A

HSBC Finance Corporation

   4.125 %   11/16/09      1,790      1,741  

SB Treasury Company LLC

   9.400 %   12/29/49      600      675 A,B
                      


                         12,914  
                      


Banks — 1.5%

                          

Bank of America Corporation

   3.375 %   2/17/09      1,075      1,031  

Bank of America Corporation

   7.800 %   9/15/16      250      300  

BankAmerica Capital III

   3.230 %   1/15/27      215      210 C

Chase Capital II

   3.243 %   2/1/27      725      684 C
                      


                         2,225  
                      


 


Portfolio of Investments - Continued

 

Pacific American Income Shares - Continued

 


 

     Rate     Maturity
Date
   Par/
Shares
   Value  

Building Materials — 0.5%

                      

American Standard, Inc.

   8.250 %   6/1/09    500    564  

Nortek, Inc.

   8.500 %   9/1/14    225    217  
                    

                     781  
                    

Cable — 1.4%

                      

Comcast Corporation

   7.050 %   3/15/33    160    179 A

Cox Communications, Inc.

   4.625 %   1/15/10    510    496 B

CSC Holdings Inc.

   7.250 %   7/15/08    700    717  

TCI Communications, Inc.

   8.750 %   8/1/15    160    200  

Tele-Communications, Inc.

   9.800 %   2/1/12    375    470  
                    

                     2,062  
                    

Casino Resorts — 0.4%

                      

Caesars Entertainment Inc.

   8.125 %   5/15/11    250    277  

Harrah’s Operating Company, Inc.

   5.500 %   7/1/10    340    346  
                    

                     623  
                    

Chemicals — 0.9%

                      

FMC Corporation

   10.250 %   11/1/09    265    295  

The Dow Chemical Company

   7.375 %   11/1/29    800    975  
                    

                     1,270  
                    

Computer Services and Systems — 0.7%

                      

Electronic Data Systems Corporation

   7.125 %   10/15/09    600    645 A

Electronic Data Systems Corporation

   7.450 %   10/15/29    420    449  
                    

                     1,094  
                    

Containers and Packaging — 0.2%

                      

Graphic Packaging International Corp.

   9.500 %   8/15/13    200    212  
                    

Diversified Financial Services — 1.0%

                      

Beaver Valley Funding Corp.

   9.000 %   6/1/17    300    350  

Capital One Financial Corporation

   8.750 %   2/1/07    350    377 A

Capital One Financial Corporation

   7.125 %   8/1/08    90    96 A

CIT Group Inc.

   3.875 %   11/3/08    5    5 A

General Electric Capital Corporation

   6.750 %   3/15/32    225    260  

 


Portfolio of Investments - Continued

 

Pacific American Income Shares - Continued

 


 

     Rate     Maturity
Date
   Par/
Shares
   Value  

iStar Financial Inc.

   6.000 %   12/15/10    230    237  

Mizuho Preferred Capital Corp. LLC

   8.790 %   12/29/49    110    122 B
                    

                     1,447  
                    

Electric — 2.0%

                      

AEP Texas Central Company

   5.500 %   2/15/13    420    428  

American Electric Power Company, Inc.

   5.250 %   6/1/15    490    486  

Dominion Resources, Inc.

   5.125 %   12/15/09    210    213  

FirstEnergy Corp.

   6.450 %   11/15/11    60    63  

FirstEnergy Corp.

   7.375 %   11/15/31    710    804  

Southern California Edison Company

   8.000 %   2/15/07    123    131  

System Energy Resources, Inc.

   4.875 %   10/1/07    380    382  

Tampa Electric Company

   6.375 %   8/15/12    145    157  

The AES Corporation

   9.500 %   6/1/09    39    43  

The Cleveland Electric Illuminating Company

   5.650 %   12/15/13    300    305  
                    

                     3,012  
                    

Energy — 6.5%

                      

Alabama Power Company

   3.125 %   5/1/08    360    347  

Calpine Generating Company, LLC

   11.169 %   4/1/11    45    43 C

Calpine Generating Company, LLC

   11.500 %   4/1/11    35    33  

CenterPoint Energy, Inc.

   6.850 %   6/1/15    1,150    1,256 A

DTE Energy Company

   6.375 %   4/15/33    330    343 A

Exelon Corporation

   6.750 %   5/1/11    1,500    1,632  

MidAmerican Energy Holdings Company

   5.875 %   10/1/12    500    519  

Pacific Gas and Electric Company

   6.050 %   3/1/34    1,695    1,740  

Peabody Energy Corporation

   6.875 %   3/15/13    285    294  

Sempra Energy

   3.318 %   5/21/08    635    637 C

TXU Corp.

   6.375 %   6/15/06    750    767  

TXU Corp.

   6.550 %   11/15/34    580    550 B

TXU Energy Co.

   3.420 %   1/17/06    135    135 B,C

TXU Energy Co.

   6.125 %   3/15/08    500    518  

TXU Energy Co.

   7.000 %   3/15/13    370    405  

Xcel Energy, Inc.

   7.000 %   12/1/10    350    385  
                    

                     9,604  
                    

 


Portfolio of Investments - Continued

 

Pacific American Income Shares - Continued

 


 

     Rate     Maturity
Date
   Par/
Shares
   Value  

Environmental Services — 0.3%

 

Waste Management, Inc.

   7.375 %   5/15/29    415    483  
                    

Food, Beverage and Tobacco — 2.5%

 

Altria Group, Inc.

   7.000 %   11/4/13    305    327  

Altria Group, Inc.

   7.750 %   1/15/27    340    388  

Domino’s, Inc.

   8.250 %   7/1/11    200    209  

Kraft Foods Inc.

   6.250 %   6/1/12    75    81  

Nabisco Incorporated

   7.550 %   6/15/15    650    767  

R.J. Reynolds Tobacco Holdings, Inc.

   7.250 %   6/1/12    1,360    1,394  

Tyson Foods, Inc.

   7.000 %   1/15/28    500    544 A
                    

                     3,710  
                    

Gas and Pipeline Utilities — 2.3%

 

Dynegy Holdings Inc.

   6.875 %   4/1/11    1,300    1,154 A

Dynegy Holdings Inc.

   8.750 %   2/15/12    735    704 A

The Williams Companies, Inc.

   7.500 %   1/15/31    102    107  

The Williams Companies, Inc.

   8.750 %   3/15/32    1,250    1,484  
                    

                     3,449  
                    

Health Care — 1.1%

 

Tenet Healthcare Corporation

   6.375 %   12/1/11    1,465    1,351  

Tenet Healthcare Corporation

   6.875 %   11/15/31    250    200  
                    

                     1,551  
                    

Homebuilding — 0.4%

 

D.R. Horton, Inc.

   5.250 %   2/15/15    410    375  

Pulte Homes, Inc.

   6.250 %   2/15/13    145    149  
                    

                     524  
                    

Investment Banking/Brokerage — 2.5%

 

J.P. Morgan Capital Trust II

   7.950 %   2/1/27    150    161 A

J.P. Morgan Chase & Co.

   5.125 %   9/15/14    2,100    2,067  

Merrill Lynch & Co., Inc.

   5.000 %   1/15/15    760    736  

The Goldman Sachs Group, Inc.

   6.345 %   2/15/34    755    774  
                    

                     3,738  
                    

Lodging/Hotels — 0.4%

 

Hilton Hotels Corporation

   7.625 %   12/1/12    450    514  
                    

Machinery — 0.3%

 

Case New Holland Incorporated

   9.250 %   8/1/11    275    293 B

Case New Holland Incorporated

   9.250 %   8/1/11    200    213 B
                    

                     506  
                    

 


Portfolio of Investments - Continued

 

Pacific American Income Shares - Continued

 


 

     Rate     Maturity
Date
   Par/
Shares
   Value  

Media — 3.5%

 

AMFM Inc.

   8.000 %   11/1/08    210    226  

Liberty Media Corporation

   4.510 %   9/17/06    1,035    1,049 C

Liberty Media Corporation

   8.500 %   7/15/29    130    134 A

Liberty Media Corporation

   8.250 %   2/1/30    65    66 A

News America, Inc.

   6.550 %   3/15/33    375    391 A

Readers Digest Association, Inc.

   6.500 %   3/1/11    300    299  

Sinclair Broadcast Group, Inc.

   8.750 %   12/15/11    210    221  

Time Warner Entertainment Company, L.P.

   8.375 %   7/15/33    680    855  

Time Warner Inc.

   6.150 %   5/1/07    390    403  

Time Warner Inc.

   6.875 %   5/1/12    270    295  

Time Warner Inc.

   7.700 %   5/1/32    590    700  

Viacom Inc.

   5.625 %   8/15/12    520    526  
                    

                     5,165  
                    

Medical Care Facilities — 1.6%

 

Coventry Health Care, Inc.

   5.875 %   1/15/12    400    400 B

HCA Inc.

   5.250 %   11/6/08    105    105  

HCA, Inc.

   7.875 %   2/1/11    250    270  

HCA, Inc.

   6.300 %   10/1/12    180    180  

HCA, Inc.

   5.750 %   3/15/14    995    950 A

Health Care REIT, Inc.

   8.000 %   9/12/12    370    424  
                    

                     2,329  
                    

Oil and Gas — 5.5%

 

Amerada Hess Corporation

   7.300 %   8/15/31    1,440    1,624 A

Conoco Inc.

   6.950 %   4/15/29    90    107  

ConocoPhillips

   4.750 %   10/15/12    250    248 A

Devon Energy Corporation

   7.950 %   4/15/32    550    694  

El Paso Corporation

   7.800 %   8/1/31    2,000    1,880  

Kerr-McGee Corporation

   7.875 %   9/15/31    475    536 A

Occidental Petroleum Corporation

   6.750 %   1/15/12    1,000    1,106 A

Ocean Energy Inc.

   4.375 %   10/1/07    430    429  

Panhandle Eastern Pipe Line Company

   4.800 %   8/15/08    445    445  

Valero Energy Corporation

   6.875 %   4/15/12    215    239  

Vintage Petroleum, Inc.

   7.875 %   5/15/11    250    265 A

XTO Energy, Inc.

   6.250 %   4/15/13    560    602  
                    

                     8,175  
                    

 


Portfolio of Investments - Continued

 

Pacific American Income Shares - Continued

 


 

     Rate     Maturity
Date
   Par/
Shares
   Value  

Paper and Forest Products — 1.8%

 

Georgia Pacific Corp

   8.000 %   1/15/24    250    279  

Georgia-Pacific Corp.

   9.500 %   12/1/11    325    383 A

International Paper Company

   5.500 %   1/15/14    490    498  

Weyerhaeuser Company

   6.750 %   3/15/12    995    1,093  

Weyerhaeuser Company

   7.375 %   3/15/32    390    456  
                    

                     2,709  
                    

Photo Equipment and Supplies — 0.5%

 

Eastman Kodak Company

   3.625 %   5/15/08    375    358 A

Eastman Kodak Company

   7.250 %   11/15/13    345    361  
                    

                     719  
                    

Real Estate — 0.2%

 

Forest City Enterprises, Inc.

   7.625 %   6/1/15    225    240 A

Socgen Real Estate Co. LLC

   1.000 %   12/29/49    80    86 B
                    

                     326  
                    

Retail — 0.2%

 

Toys “R” Us, Inc.

   6.875 %   8/1/06    350    356 A
                    

Special Purpose — 13.2%

 

Ahold Finance USA, Inc.

   8.250 %   7/15/10    355    390  

Conoco Funding Company

   6.350 %   10/15/11    420    458  

DaimlerChrysler NA Holding Corporation

   3.450 %   9/10/07    1,570    1,572 C

DaimlerChrysler NA Holding Corporation

   7.300 %   1/15/12    415    453  

DaimlerChrysler NA Holding Corporation

   6.500 %   11/15/13    160    166  

Duke Capital Corporation

   6.250 %   2/15/13    1,200    1,266 A

NiSource Finance Corp.

   3.200 %   11/1/06    375    367  

PNPP II Funding Corporation

   9.120 %   5/30/16    2,429    2,849 A

Qwest Capital Funding, Inc.

   7.250 %   2/15/11    2,000    1,865 A

Rabobank Capital Funding Trust III

   5.254 %   12/29/49    905    896 B

Sithe Independence Funding Corporation

   9.000 %   12/30/13    1,500    1,675  

Sprint Capital Corporation

   4.780 %   8/17/06    470    473 D

Sprint Capital Corporation

   8.750 %   3/15/32    1,420    1,842  

TCI Communications Financing III

   9.650 %   3/31/27    3,000    3,392  

The Williams Companies, Inc. Credit Certificate Trust

   6.750 %   4/15/09    1,740    1,770 B
                    

                     19,434  
                    

 


Portfolio of Investments - Continued

 

Pacific American Income Shares - Continued

 


 

     Rate     Maturity
Date
   Par/
Shares
   Value  

Telecommunications — 1.2%

 

BellSouth Corporation

   4.750 %   11/15/12    320    312  

Emmis Operating Company

   6.875 %   5/15/12    250    245  

Qwest Corporation

   6.875 %   9/15/33    1,000    862 A

Verizon New York Inc.

   6.875 %   4/1/12    340    371  
                    

                     1,790  
                    

Telecommunications (Cellular/Wireless) — 1.4%

 

AT&T Wireless Services Inc.

   7.500 %   5/1/07    500    531  

AT&T Wireless Services Inc.

   8.125 %   5/1/12    95    111  

AT&T Wireless Services Inc.

   8.750 %   3/1/31    475    627  

Motorola, Inc.

   7.625 %   11/15/10    350    393  

Nextel Communications, Inc.

   5.950 %   3/15/14    88    88  

Nextel Communications, Inc.

   7.375 %   8/1/15    285    301  
                    

                     2,051  
                    

Transportation — 0.9%

 

Continental Airlines, Inc.

   6.545 %   2/2/19    82    80  

Continental Airlines, Inc.

   7.256 %   3/15/20    242    243  

Delta Air Lines, Inc.

   7.570 %   5/18/12    160    149  

Delta Air Lines, Inc.

   6.417 %   7/2/12    400    416  

Delta Air Lines, Inc.

   6.718 %   7/2/24    282    294  

Northwest Airlines Corporation

   7.575 %   3/1/19    84    85  

United Airlines, Inc.

   7.783 %   1/1/14    102    93  
                    

                     1,360  
                    

Total Corporate Bonds and Notes (Identified Cost — $94,558)

   97,739  
                    

Mortgage-Backed Securities — 0.8%

 

Fixed Rate Securities — 0.8%

 

Glendale Federal Savings Bank 1978-A

   9.125 %   1/25/08    9    9  

Nomura Asset Securities Corporation 1996-MD5

   7.120 %   4/13/39    1,170    1,206  
                    

Total Mortgage-Backed Securities (Identified Cost — $1,179)

   1,215  
                    

U.S. Government and Agency Obligations — 8.1%

 

Fixed Rate Securities — 5.9%

 

United States Treasury Notes

   3.500 %   2/15/10    8,940    8,677 A

 


Portfolio of Investments - Continued

 

Pacific American Income Shares - Continued

 


 

     Rate     Maturity
Date
   Par/
Shares
   Value  

United States Treasury Notes

   4.000 %   2/15/15    5    5 A
                    

                     8,682  
                    

Indexed Securities — 2.2%

 

United States Treasury
Inflation-Protected Security

   0.875 %   4/15/10    3,291    3,220 A,E
                    

Total U.S. Government and Agency Obligations (Identified Cost — $11,970)

   11,902  
                    

U.S. Government Agency Mortgage-Backed Securities — 0.1%

 

Fixed Rate Securities — 0.1%

 

Fannie Mae

   8.000 %   4/25/06    28    28  

Fannie Mae

   11.500 %   11/1/17    25    27  

Fannie Mae

   14.000 %   2/1/18    45    53  

Freddie Mac

   10.250 %   5/1/09    28    30  
                    

                     138  
                    

Total U.S. Government Agency Mortgage-Backed Securities (Identified Cost — $129)

   138  
                    

Yankee BondsF — 22.5%

 

Banking and Finance — 1.7%

 

Corporacion Andina de Fomento

   3.050 %   1/26/07    470    470 C

HBOS Capital Funding LP

   6.071 %   6/30/49    560    586 B

HBOS Treasury Services plc

   4.000 %   9/15/09    420    409 A,B

Mizuho Financial Group, Inc.

   5.790 %   4/15/14    1,100    1,115 B
                    

                     2,580  
                    

Banks — 0.7%

 

Korea Exchange Bank

   13.750 %   6/30/10    1,000    1,020 B,D
                    

Cable — 0.2%

 

British Sky Broadcasting Group plc

   6.875 %   2/23/09    330    354  
                    

Diversified Financial Services — 0.5%

 

Encana Holdings Finance Corp

   5.800 %   5/1/14    770    804  
                    

Electric — 0.5%

 

Empresa Nacional de Electricidad S.A.

   8.500 %   4/1/09    670    732 A
                    

 


Portfolio of Investments - Continued

 

Pacific American Income Shares - Continued

 


 

     Rate     Maturity
Date
   Par/
Shares
   Value  

Foreign Governments — 10.0%

 

Federative Republic of Brazil

   14.500 %   10/15/09    180    226 A

Federative Republic of Brazil

   12.000 %   4/15/10    210    246 A

Federative Republic of Brazil

   3.125 %   4/15/12    159    149 C

Federative Republic of Brazil

   3.125 %   4/15/12    247    232 C

Federative Republic of Brazil

   8.000 %   4/15/14    2,518    2,493 A

Federative Republic of Brazil

   11.000 %   8/17/40    340    378 A

Quebec Province

   7.220 %   7/22/36    650    913 D

Republic of Bulgaria

   8.250 %   1/15/15    20    24 B

Republic of Bulgaria

   8.250 %   1/15/15    508    615 B

Republic of Chile

   3.110 %   1/28/08    150    151 C

Republic of Colombia

   10.500 %   7/9/10    200    220  

Republic of Colombia

   11.750 %   2/25/20    260    309 A

Republic of Panama

   9.625 %   2/8/11    170    192  

Republic of Panama

   10.750 %   5/15/20    200    248 A

Republic of Panama

   9.375 %   1/16/23    110    123 A

Republic of Peru

   5.000 %   3/7/17    447    418 D

Republic of Peru

   8.750 %   11/21/33    90    94  

Republic of South Africa

   7.375 %   4/25/12    250    275  

Republic of South Africa

   6.500 %   6/2/14    260    273 A

Russian Federation

   5.000 %   3/31/30    1,950    1,998 D

Russian Ministry of Finance

   3.000 %   5/14/06    80    78  

United Mexican States

   8.375 %   1/14/11    1,290    1,468  

United Mexican States

   11.500 %   5/15/26    960    1,452 A

United Mexican States

   7.500 %   4/8/33    2,030    2,152  
                    

                     14,727  
                    

Insurance — 1.0%

 

Axa

   8.600 %   12/15/30    550    722  

Oil Insurance Ltd

   5.150 %   8/15/33    220    221 B

XL Capital Ltd.

   5.250 %   9/15/14    500    493  
                    

                     1,436  
                    

Manufacturing (Diversified) — 1.1%

 

Tyco International Group SA

   6.375 %   10/15/11    1,450    1,548  
                    

Oil and Gas — 1.3%

 

Gazprom

   9.625 %   3/1/13    50    57 B

Gazprom

   9.625 %   3/1/13    20    23  

Petrobras International Finance Company (PIFCO)

   9.750 %   7/6/11    345    394  

Petroliam Nasional Berhad

   7.625 %   10/15/26    1,260    1,486 B
                    

                     1,960  
                    

 


Portfolio of Investments - Continued

 

Pacific American Income Shares - Continued

 


 

     Rate     Maturity
Date
   Par/
Shares
        Value  

Special Purpose — 2.7%

      

Deutsche Telekom International Finance BV

   8.750 %   6/15/30    500         654  

Petrozuata Finance, Inc.

   8.220 %   4/1/17    3,205         3,013 B

UFJ Finance Aruba AEC

   6.750 %   7/15/13    355         382  
                         

                          4,049  
                         

Telecommunications — 2.2%

      

British Telecommunications plc

   8.875 %   12/15/30    330         440  

France Telecom SA

   8.750 %   3/1/31    560         737  

Tele Norte Leste Participacoes S.A.

   8.000 %   12/18/13    410         408  

Telecom Italia Capital S.p.A.

   5.250 %   11/15/13    750         741  

Telecom Italia Capital S.p.A.

   4.950 %   9/30/14    695         665 B

Telus Corporation

   7.500 %   6/1/07    250         266  
                         

                          3,257  
                         

Telecommunications (Cellular/Wireless) — 0.2%

      

Rogers Wireless Communications Inc.

   6.375 %   3/1/14    300         291  
                         

Utilities — 0.4%

      

United Utilities plc

   5.375 %   2/1/19    580         560  
                         

Total Yankee Bonds (Identified Cost — $31,253)

        33,318  
                         

Total Long-Term Securities (Identified Cost — $139,089)

        144,312  

Investment of Collateral from Securities Lending — 25.6%
State Street Navigator Securities Lending Prime Portfolio

              37,812    shs    37,812  
                         

Total Investment of Collateral From Securities Lending (Identified Cost - $37,812)

                        37,812  

Short-Term Securities — 1.3%

      

Repurchase Agreements — 1.3%

      

Goldman, Sachs & Company

2.8%, dated 3/31/05, to be repurchased at $1,931 on 4/1/05 (Collateral: $1,960 Federal Home Loan Bank bonds, 1.2%, due 4/1/05, value $1,984)

              1,931         1,931  
                         

Total Short-Term Securities (Identified Cost — $1,931)

        1,931  
                         

Total Investments — (Identified Cost — $178,832) 124.5%

        184,055  

Obligation to Return Collateral for Securities Loaned - (25.6%)

                        (37,812 )

Other Assets Less Liabilities — 1.1%

        1,630  
                         

 


Portfolio of Investments - Continued

 

Pacific American Income Shares - Continued

 


 

     Rate    Maturity
Date
   Par/
Shares
   Value

Net Assets — 100.0%

   $ 147,873
                   

 

A All or a portion of this security is on loan.

 

B Rule 144a Security – A security purchased pursuant to Rule 144a under the Securities Act of 1933 which may not be resold subject to that rule except to qualified institutional buyers. These securities represent 5.2% of net assets.

 

C Indexed Security – The rates of interest earned on these securities are tied to the London Interbank Offered Rate (“LIBOR”), or the one-year Treasury Bill rate. The coupon rates are the rates as of March 31, 2005.

 

D Stepped coupon security – A security with a predetermined schedule of interest or dividend rate changes.

 

E Inflation-Protected Security – Security whose principal value is adjusted daily or monthly in accordance with changes to the Consumer Price Index for all Urban Consumers. Interest is calculated on the basis of the current adjusted principal value.

 

F Yankee Bond – A dollar-denominated bond issued in the U.S. by foreign entities.

 

Security Valuation

 

In valuing portfolio securities, securities listed or traded on a national securities exchange are valued at the last sales price. Each security traded in the over-the-counter market, including listed debt securities whose primary market is believed to be over-the-counter, is generally valued at the mean of the bid and asked prices at the time of computation. Prices are obtained from at least two dealers regularly marking a market in the security, unless such prices can be obtained from only a single market maker. The difference between cost and market value is reflected separately as unrealized appreciation or depreciation of investments. Short-term securities are generally stated at cost plus interest earned, which approximates market value.

 

Securities Lending

 

The Company lends its securities to approved brokers to earn additional income and receives cash and U.S. government securities as collateral against the loans. Cash collateral received is invested in a money market pooled account by the Company’s lending agent. Collateral is maintained over the life of the loan in an amount not less than 100% of the value of loaned securities. At March 31, 2005, the market value of the securities on loan to broker-dealers was 37,046, for which the Company received collateral of $37,812 in cash. Such collateral is in the possession of the Company’s custodian. The cash was invested in the State Street Navigator Securities Lending Prime Portfolio and is included in the Company’s schedule of investments. As with other extensions of credit, the Company may bear the risk of delay in recovery or even loss of rights to the collateral should the borrower of the securities fail financially.

 

Other information regarding the Company is available in the Company’s most recent Report to Shareholders. This information is available on the Securities and Exchange Commission’s website (www.sec.gov).

 


Item 2 – Controls and Procedures

 

  (a) The principal executive and principal financial officers of Pacific American Income Shares, Inc. (the “Registrant”) have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant’s disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the required time periods in the Securities and Exchange Commission’s rules and forms and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-Q is accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

 

  (b) There were no changes in the Registrant’s internal control over financial reporting during the Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the internal control over financial reporting.

 

Item 3 – Exhibits

 

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 are attached hereto.


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.

 

Pacific American Income Shares, Inc.
By:  

/s/ James W. Hirschmann


    James W. Hirschmann
    President, Pacific American Income Shares, Inc.
Date:   May 27, 2005

 

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 dates indicated.

 

By:  

/s/ James W. Hirschmann


    James W. Hirschmann
    President, Pacific American Income Shares, Inc.
Date:   May 27, 2005

 

By:  

/s/ Marie K. Karpinski


    Marie K. Karpinski
    Treasurer and Principal Financial and Accounting Officer,
    Pacific American Income Shares, Inc.
Date:   May 27, 2005