NEW YORK, Dec. 5, 2006 (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 six months ended August 31, 2006.
At August 31, 2006 At August 31, 2005
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Net Assets (a) $1,537,271,192 $1,582,383,011
Common Shares Outstanding 69,936,824 68,025,785
Net Asset Value ("NAV") $14.47 $15.54
Market Price $16.03 $16.03
Premium to NAV 10.78% 3.15%
Quarter ended Quarter ended
August 31, 2006 August 31, 2005
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Net Investment Income (b) $ 25,458,900 $ 25,544,037
Per Common Share (b) $0.36 $0.38
Net Realized and Change in
Unrealized Gain (b) $ 5,502,812 $ 63,400,628
Per Common share (b) $0.10 $0.93
3 Month Average Undistributed
(Overdistributed) Net
Investment Income Per
Common Share (c) $(0.0189) $0.1379
Six Months ended Six Months ended
August 31, 2006 August 31, 2005
---------------- ----------------
Net Investment Income (b) $ 54,366,726 $ 49,588,376
Per Common Share (b) $0.78 $0.73
Net Realized and Change in
Unrealized Loss (b) $(6,468,728) $(25,977,102)
Per Common share (b) $(0.07) $(0.39)
(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 six months ended
August 31, 2006 was $2,968,485 ($0.04 per common share) and
$4,584,191 ($0.07 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 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 (lower) than those figures would be if payments received
from interest rate cap agreements were treated as net income in
accordance with federal income tax treatment.
In addition, these figures include amortization of market premium
of $3,021,821 ($0.04 per common share) and $7,224,674 ($0.10 per
common share) for the fiscal quarter and six months ended August
31, 2006, respectively and $2,819,500 ($0.04 per common share)
and $5,251,271 ($0.08 per common share) for the fiscal quarter
and six months ended August 31, 2005, 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 August 31, 2006 and August 31, 2005,
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.