NEW YORK, Aug. 16, 2005 (PRIMEZONE) -- NEW YORK, August 16, 2005 -- 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 ended May 31, 2005.
At May 31, 2005 At May 31, 2004
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Net Assets (a) $1,518,003,957 $1,588,231,731
Common Shares Outstanding 67,683,324 66,193,927
Net Asset Value ("NAV") $14.67 $16.06
Market Price $15.31 $15.30
Premium (Discount) to NAV 4.36% (4.73)%
(a) Net assets are inclusive of $525 million Preferred
shares issuance.
Quarter ended Quarter ended
May 31, 2005 May 31, 2004
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Net Investment Income $24,044,339 (b) $18,687,272
Per Common Share $0.35 (b) $0.28
Net Realized and Change
in Unrealized Loss $(89,377,730)(b) $(38,372,902)
Per Common share $(1.32)(b) $(0.58)
3 Month Average
Undistributed Net
Investment Income Per
Common Share (c) $0.1328 N/A
(b) The information provided is in accordance with generally
accepted accounting principles ("GAAP"), which requires the Fund
to treat amounts received by the Fund under interest rate caps 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 quarter ended ended May 31, 2005
was $1,265,633 ($0.019 per common share) lower (and Net Realized
and Change in Unrealized Loss correspondingly higher) than those
figures would be if the interest rates caps were treated as net
income (loss) in accordance with federal income tax treatment. In
addition, these figures include amortization of market premium of
$2,431,771 (0.036 per common share.) For tax purposes, the Fund
has elected not to amortize market premium on corporate and
convertible bonds and notes.
(c) Calculated using the month-end tax-basis balances for the
three months ended May 31, 2005. Please note that there is a
close correlation between what 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 modestly 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 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.
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 www.allianzinvestors.com/closedendfunds or by calling the Fund's transfer agent at 1-800-331-1710.
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. In making an investment decision, individuals should utilize other information sources and the advice of their own professional advisor.