NEW YORK, May 4, 2007 (PRIME NEWSWIRE) -- Nicholas-Applegate Convertible & Income Fund (the "Fund") (NYSE:NCV), 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 At February 28, 2006
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Net Assets (a) $1,575,149,487 $1,542,778,578
Common Shares Outstanding 70,746,893 69,270,294
Net Asset Value ("NAV") $14.84 $14.69
Market Price $16.08 $15.69
Premium to NAV 8.36% 6.81%
Quarter ended Quarter ended
February 28, 2007 February 28, 2006
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Net Investment Income (b) $30,691,422 $30,208,764
Per Common Share (b) $0.45 $0.44
Net Realized and Change in
Unrealized Gain (b) $17,812,705 $16,662,878
Per Common Share (b) $0.26 $0.23
3 Month Average Undistributed
(Overdistributed) Net
Investment Income Per
Common Share (c) $0.0237 ($0.0024)
Year ended Year ended
February 30, 2007 February 28, 2006
----------------- -----------------
Net Investment Income (b) $116,181,272 $103,017,768
Per Common Share (b) $1.66 $1.51
Net Realized and Change in
Unrealized Gain (Loss)(b) $38,553,272 $(31,796,377)
Per Common share (b) $0.55 $(0.48)
(a) Net assets are inclusive of market value of Preferred Shares of
$525 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 $3,126,667 ($0.04 per common share) and
$10,832,566 ($0.15 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, 2006 was $2,403,005 ($0.04 per common share)
and $8,126,077 ($0.12 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.
Net Investment Income for the fiscal quarters ended February 28,
2007 and February 28, 2006 include adjustments to amortization
of market premium of ($660,969) (($0.009) per common share) and
($308,714) (($0.004) per common share), respectively. Net
investment Income for the fiscal years ended February 28, 2007
and February 28, 2006 include amortization of market premium of
$11,746,308 ($0.17 per common share) and $7,677,213 ($0.11 per
common share, respectively). 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 three months ended February 28, 2007 and February 28, 2006,
respectively. 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.