NEW YORK, Feb. 9, 2009 (GLOBE 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 nine months ended November 30, 2008.
At November 30,
---------------
2008 2007
---- ----
Net Assets (a) $620,171,569 $1,345,204,601
Common Shares Outstanding 59,587,332 59,308,389
Net Asset Value ("NAV") $4.70 $14.17
Market Price $3.20 $13.02
Discount to NAV (31.91)% (8.12)%
Quarter ended November 30,
--------------------------
2008 2007
---- ----
Net Investment Income (b) $20,596,622 $24,964,878
Per Common Share (b) $0.34 $0.42
Net Realized and Change in
Unrealized Loss (b) $(376,745,746) $(5,501,557)
Per Common Share (b) $(6.32) $(0.10)
Undistributed Net Investment
Income Per Common Share (c) $0.1795 $0.3634
Nine Months ended November 30,
------------------------------
2008 2007
---- ----
Net Investment Income (b) $74,785,439 $79,726,318
Per Common Share (b) $1.25 $1.34
Net Realized and Change in
Unrealized Loss (b) $(464,207,243) $(41,258,071)
Per Common Share (b) $(7.79) $(0.70)
(a) Net assets are inclusive of market value of Preferred Shares of
$340 million. The Fund redeemed $66 million of Preferred Shares
from December 26, 2008 through December 31, 2008.
(b) Net Investment Income for the fiscal quarter and nine months
ended November 30, 2008 includes amortization of market premium
of $3,154,148 ($0.05 per common share) and $4,146,673 ($0.07 per
common share), respectively. Net Investment Income for the
fiscal quarter and nine months ended November 30, 2007 includes
amortization of market premium of $967,716 ($0.02 per common
share) and $3,576,775 ($0.06 per common share), respectively.
For tax purposes, the Fund has elected not to amortize market
premium on corporate bonds.
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 nine months ended
November 30, 2007 was $3,199,316 ($0.05 per common share) and
$9,089,860 ($0.15 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. The Fund did not
engage in interest rate cap agreement transactions during the
fiscal period ended November 30, 2008.
(c) Calculated using the accumulated balance at November 30, 2008 and
November 30, 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 pay dividends to common shareholders is subject to the restrictions in their registration statements, By-laws and other governing documents as well as the Investment Company Act of 1940. In making any investment decision, individuals should utilize other information sources and the advice of their own professional adviser.