NEW YORK, Oct. 27, 2005 (PRIMEZONE) -- 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 six months ended August 31, 2005.
At August 31, 2005 At August 31, 2004
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Net Assets (a) $1,582,383,011 $1,567,071,056
Common Shares Outstanding 68,025,785 66,308,468
Net Asset Value ("NAV") $15.54 $15.72
Market Price $16.03 $16.11
Premium to NAV 3.15% 2.48%
(a) Net assets are inclusive of $525 million Preferred shares
issuance.
Quarter ended Quarter ended
August 31, 2005 August 31, 2004
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Net Investment Income $25,544,037(b) $25,353,697
Per Common Share $0.38(b) $0.38
Net Realized and Change
in Unrealized Gain
(Loss) $63,400,628(b) $(15,837,664)
Per Common share $0.93(b) $(0.23)
3 Month Average
Undistributed Net
Investment Income Per
Common Share (c) $0.1379 N/A
Six Months ended Six Months ended
August 31, 2005 August 31, 2004
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Net Investment Income $49,588,376 (b) $44,040,969
Per Common Share $0.73 (b) $0.66
Net Realized and Change
in Unrealized Loss $(25,977,102)(b) $(54,210,566)
Per Common Share $(0.39)(b) $(0.81)
(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 six months ended
August 31, 2005 was $1,825,808 ($0.03 per common share) and
$3,091,441 ($0.05 per common share), respectively, lower and Net
Realized and Change in Unrealized Gain (Loss) correspondingly
higher than those figures would be if payments received from
interest rate cap agreements were treated as net income (loss) in
accordance with federal income tax treatment. In addition, the
fiscal quarter and six month ended August 31, 2005 figures
include amortization of market premium of $2,819,500 ($0.04 per
common share) and $5,251,271 ($0.08 per common share). 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 August 31, 2005. 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 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. 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.
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 transfer 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 advisor.