NEW YORK, Oct. 30, 2008 (GLOBE NEWSWIRE) -- Nicholas-Applegate Convertible & Income Fund (the "Fund") (NYSE:NCV), a closed-end management investment company which seeks to provide total return through a combination of capital appreciation and high current income, today announced its results for the fiscal quarter and six months ended August 31, 2008.
At August 31,
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2008 2007
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Net Assets (a) $1,326,418,226 $1,539,831,418
Common Shares Outstanding 71,960,104 71,371,209
Net Asset Value ("NAV") $11.14 $14.22
Market Price $11.58 $13.77
Premium (Discount) to NAV 3.95% (3.16)%
Quarter ended August 31,
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2008 2007
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Net Investment Income (b) $30,412,979 $22,649,426
Per Common Share (b) $0.42 $0.32
Net Realized and Change in Unrealized
Loss (b) $(113,334,698) $(73,107,302)
Per Common Share (b) $(1.58) $(1.02)
Undistributed (Overdistributed)
Net Investment Income Per Common
Share (c) (d) $(0.0697) 0.0766
Six Months ended August 31,
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2008 2007
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Net Investment Income (b) $63,756,713 $62,692,609
Per Common Share (b) $0.89 $0.88
Net Realized and Change in Unrealized
Loss (b) $(100,337,319) $(40,279,890)
Per Common Share (b) $(1.40) $(0.56)
(a) Net assets are inclusive of market value of Preferred Shares of
$525 million. During the period of October 27 through October 31,
2008, the Fund will redeem $25 million of Preferred Shares.
(b) The information provided is in accordance with generally accepted
accounting principles ("GAAP"), which requires the Fund to treat
amounts received under interest rate cap agreements as net
realized gain (loss). However, these amounts are treated as net
income (loss) for federal income tax purposes. By using GAAP,
Net Investment Income for the fiscal quarter and six months ended
August 31, 2007 was $3,112,666 ($0.05 per common share) and
$6,123,833 ($0.09 per common share) lower, respectively (and Net
Realized and Change in Unrealized Loss correspondingly lower)
than those figures would have been if payments received from
interest rate cap agreements were treated as net income in
accordance with federal income tax treatment.
Net Investment Income for the fiscal quarter and six months ended
August 31, 2008 includes amortization of market premium of $511,396
($0.01 per common share) and $1,156,955($0.02 per common share),
respectively. Net Investment Income for the fiscal quarter and
six months ended August 31, 2007 includes amortization of market
premium of $1,340,947($0.02 per common share) and $2,981,303
($0.04 per common share), respectively. For tax purposes, the
Fund has elected not to amortize market premium on corporate
bonds.
(c) Calculated using the accumulated balance at August 31, 2008 and
August 31, 2007, respectively.
(d) Note that generally there is a close correlation between what the
Fund earns (net of expenses) and what it pays in monthly
dividends. However, since net earning rates fluctuate from month
to month while monthly dividends have remained relatively stable,
there will be periods when the Fund may over-earn or under-earn
its monthly dividend, which would have the effect of adding to or
subtracting from the Fund's undistributed (overdistributed) net
investment income balance. Fund management analyzes the Fund's
current and projected net earning rates prior to recommending
dividend amounts to the Fund's Board of Trustees for declaration.
There can be no assurance that the current dividend rate or the
undistributed (overdistributed) net investment income balance
will remain constant. These figures are inclusive of amounts
received under interest rate cap agreements, in accordance with
federal income tax treatment and excludes the amortization of
market premium on corporate bonds.
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). Nicholas-Applegate Capital Management 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, net asset value per share, as well as other information, is available at http://www.allianzinvestors.com/closedendfunds or by calling the Fund's shareholder servicing agent at (800) 331-1710.
The financial information contained herein is solely based upon the data available at the time of publication of this press release, and there is no assurance that any future results will be same or similar to the results reported herein. Information that was obtained from third party sources we believe to be reliable is not guaranteed as to its accuracy or completeness. This press release contains no recommendations to buy or sell any specific securities and should not be considered investment advice of any kind. Past performance is no guarantee of future results and the investment returns generated by the Fund will fluctuate. There can be no assurance that the Fund will meet its objective. The Fund's ability to maintain leverage and to pay dividends to common shareholders is subject to the restrictions in their registration statement, by-laws and other governing documents. In making an investment decision, individuals should utilize other information sources and the advice of their own professional adviser.