NEW YORK, Oct. 30, 2008 (GLOBE NEWSWIRE) -- NEW YORK, October 30, 2008 -- Nicholas-Applegate Convertible & Income Fund II (the "Fund") (NYSE:NCZ), 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) $1,158,442,120 $1,353,902,598
Common Shares Outstanding 59,587,332 59,308,389
Net Asset Value ("NAV") $10.97 $14.31
Market Price $10.85 $13.80
Discount to NAV (1.09)% (3.56)%
Quarter ended August 31,
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2008 2007
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Net Investment Income (b) $25,454,132 $18,769,303
Per Common Share (b) $0.43 $0.31
Net Realized and Change in
Unrealized Loss (b) $(97,092,692) $(62,401,956)
Per Common Share (b) $(1.63) $(1.05)
Undistributed Net Investment Income
Per Common Share (c) $0.0684 $0.3466
Six Months ended August 31,
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2008 2007
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Net Investment Income (b) $54,188,817 $54,761,440
Per Common Share (b) $0.91 $0.92
Net Realized and Change in
Unrealized Loss (b) $(87,461,497) $(35,756,514)
Per Common Share (b) $(1.47) $(0.60)
(a) Net assets are inclusive of market value of Preferred Shares of
$505 million. During the period of October 27 through October 31,
2008, the Fund will redeem $105 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 $2,994,088 ($0.05 per common share) and
$5,890,544 ($0.10 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
$444,463 ($0.01 per common share) and $992,524 ($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 $1,169,067 ($0.02 per common
share) and $2,609,059 ($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 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 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.