NEW YORK, May 10, 2006 (PRIMEZONE) -- 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 two month and eight month periods ended February 28, 2006(1).
At February 28, 2006
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Net Assets(a) $1,355,769,408
Common Shares Outstanding 57,873,575
Net Asset Value ("NAV") $14.70
Market Price $15.14
Premium to NAV 2.99%
Two months ended
February 28, 2006
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Net Investment Income $19,709,127 (b)
Per Common Share $0.34 (b)
Net Realized and Change in Unrealized Gain $10,942,156 (b)
Per Common Share $0.20 (b)
3 Month Average Undistributed
Net Investment Income Per Common Share $0.0510 (c)
Eight months ended
February 28, 2006
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Net Investment Income $60,146,487 (b)
Per Common Share $1.04 (b)
Net Realized and Change in Unrealized Gain $32,650,668 (b)
Per Common Share $0.58 (b)
(1) In December 2005, the Fund changed its fiscal year-end from June 30 to February 28. Accordingly, the fiscal two and eight month periods ended February 28, 2006 are being reported and prior year's comparative information is not included.
(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 two month and eight month periods ended February 28, 2006 was $1,247,903 ($0.02 per common share) and $6,085,678 ($0.11 per common share), respectively, lower and Net Realized and Change in Unrealized Gain, correspondingly higher than if payments received from interest rate cap agreements were treated as net income (loss) in accordance with federal income tax treatment. In addition, the two month and eight month period figures include amortization of market premium of $1,529,853 ($0.03 per common share) and $6,506,002 ($0.11 per common share), respectively. For tax purposes, the Fund has elected not to amortize market premium.
(c) Calculated using the month-end tax-basis balances for the three months ended February 28, 2006. 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 market premium which the Fund, for tax purposes, has elected not to amortize.
Correction to Recent Annual Report. The "Total Return" table on page 3 of the Fund's February 28, 2006 annual report incorrectly lists 10.26% as the "Market Price" total return from Commencement of Operations (7/31/03) to 2/28/06. The correct figure is 11.68%.
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.