NEW YORK, Aug. 3, 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 ended May 31, 2007.
At May 31, 2007 At May 31, 2006
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Net Assets (a) $1,422,807,362 $1,356,388,521
Common Shares Outstanding 59,171,971 58,105,321
Net Asset Value ("NAV") $ 15.51 $ 14.65
Market Price $ 15.96 $ 14.98
Premium to NAV 2.90% 2.25%
Quarter ended Quarter ended
May 31, 2007 May 31, 2006
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Net Investment Income (b) $ 35,992,137 $ 25,550,353
Per Common Share (b) $ 0.61 $ 0.44
Net Realized and Change in
Unrealized Gain
(Loss) (b) $ 26,645,442 $ (10,411,095)
Per Common Share (b) $ 0.45 $(0.18)
Undistributed Net Investment
Income Per Common Share (e) 0.2816 (c) 0.0318 (d)
(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
ended May 31, 2007 was $2,896,456 ($0.05 per common share) 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 (loss) in accordance with federal income
tax treatment. By using GAAP, Net Investment Income for the
fiscal quarter ended May 31, 2006 was $1,554,155 ($.03 per
common share) 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.
Net investment Income for the fiscal quarters ended May 31, 2007
and May 31, 2006 include amortization of market premium
$1,439,992 ($0.02 per common share) and $359,748 ($0.01 per
common share), respectively. For tax purposes, the Fund has
elected not to amortize market premium on corporate bonds.
(c) Calculated using the accumulated fiscal year-to-date balance at
May 31, 2007.
(d) Calculated using the average fiscal year-to-date month-end
balances for the three months ended May 31, 2006.
(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
modestly 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.