NEW YORK, May 4, 2007 (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 28, 2007*.
At February 28, 2007
Net Assets(a) $1,384,013,839
Common Shares Outstanding 58,958,731
Net Asset Value ("NAV") $ 14.91
Market Price $ 15.42
Premium to NAV 3.42%
Quarter ended
February 28, 2007
Net Investment Income (b) $ 26,150,720
Per Common Share (b) $ 0.45
Net Realized and Change in Unrealized Gain $ 15,462,905
Per Common Share (b) $ 0.27
3 Month Average Undistributed
Net Investment Income Per Common Share (c) $ 0.1851
Year ended
February 28, 2007
Net Investment Income (b) $ 98,948,695
Per Common Share (b) $ 1.69
Net Realized and Change in Unrealized Gain (b) $ 35,586,783
Per Common Share (b) $ 0.61
* In December 2005, the Fund changed its fiscal year-end from June 30
to February 28. Accordingly, prior year comparative information is not
provided.
(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
28, 2007 was $3,007,556 ($0.05 per common share) and $10,419,897
($0.18 per common share), respectively lower and Net Realized and
Change in Unrealized Gain, correspondingly higher than those
figures would have been if payments received from interest rate
cap agreements were treated as net income (loss) in accordance
with federal income tax treatment. In addition, Net Investment
Income for the fiscal quarter ended February 28, 2007 includes an
adjustment 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 estimated month-end tax-basis balances for
the year ended February 28, 2007. 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 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. This figure is 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 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.