NEW YORK, May 22, 2008 (PRIME NEWSWIRE) -- 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 year ended February 29, 2008.
At Feb. 29, At Feb. 28,
2008 2007
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Net Assets (a) $1,240,359,594 $1,384,013,839
Common Shares Outstanding 59,407,723 58,958,731
Net Asset Value ("NAV") $12.38 $14.91
Market Price $12.09 $15.42
Premium (Discount) to NAV (2.34)% 3.42%
Quarter ended Quarter ended
Feb. 29, 2008 Feb. 28, 2007
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Net Investment Income (b) $20,592,966 $26,150,720
Per Common Share (b) $0.36 $0.45
Net Realized and Change in
Unrealized Gain (Loss) (b) $(87,754,291) $15,462,905
Per Common Share (b) $(1.47) $0.27
Undistributed
(Overdistributed) Net
Investment Income Per
Common Share (e) $(0.0074)(c) $0.1851(d)
Year ended Year ended
Feb. 29, 2008 Feb. 28, 2007
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Net Investment Income (b) $100,319,284 $98,948,695
Per Common Share (b) $1.70 $1.69
Net Realized and Change in
Unrealized Gain (Loss) (b) $(129,012,362) $35,586,783
Per Common Share (b) $(2.17) $0.61
(a) Net assets are inclusive of market value of Preferred Shares of
$505 million.
(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 year ended February
29, 2008 was $1,566,309 ($0.03 per common share) and $10,656,169
($0.18 per common share), respectively lower and Net Realized and
Change in Unrealized Gain (Loss) correspondingly higher (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. By using GAAP, Net
Investment Income for the fiscal quarter and year ended February
28, 2007 was $3,007,556 ($0.05 per common) and $10,419,897 ($0.18
per common share), respectively lower and Net Realized and Change
in Unrealized Gain (Loss) correspondingly higher (lower) than
those figures would be if payments received from interest rate
cap agreements were treated as net income in accordance with
federal tax treatment.
Net Investment Income for the fiscal quarter and year ended
February 29, 2008 includes amortization of market premium of
$627,441 ($0.01 per common share) and $4,204,216 ($0.07 per
common share), respectively. Net Investment Income for the fiscal
quarter ended February 28, 2007 includes adjustments to
amortization of market premium of ($580,391) (($0.01) per common
share). Net Investment Income for the fiscal year ended February
28, 2007 includes amortization of market premium of $9,992,860
($0.17 per common share). For tax purposes, the Fund has elected
not to amortize market premium on corporate bonds.
(c) Calculated using the accumulated fiscal year-to-date "tax" basis
balance at February 29, 2008. Fiscal year-end tax adjustments,
primarily attributable to convertible preferred securities,
resulted in a reduction of net investment income for the year
ended February 29, 2008. The Fund did not have a return of
capital for the fiscal year ended February 29, 2008.
(d) Calculated using the average fiscal year-to date "book" basis
month-end balances for the three months ended February 28, 2007.
(e) Please 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. In making an investment decision, individuals should utilize other information sources and the advice of their own professional adviser.