NEW YORK, Dec. 5, 2006 (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 and six months ended August 31, 2006*.
At August 31, 2006
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Net Assets(a) $1,353,605,413
Common Shares Outstanding 58,330,604
Net Asset Value ("NAV") $14.55
Market Price $15.52
Premium to NAV 6.67%
Quarter ended
August 31, 2006
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Net Investment Income $21,044,879 (b)
Per Common Share $0.36 (b)
Net Realized and Change in Unrealized Gain $6,820,605 (b)
Per Common Share $0.13 (b)
3 Month Average Undistributed
Net Investment Income Per Common Share $0.1187 (c)
Six Months ended
August 31, 2006
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Net Investment Income $46,595,232 (b)
Per Common Share $0.80 (b)
Net Realized and Change in Unrealized Loss $(3,590,490)(b)
Per Common Share $(0.05)(b)
* In December 2005, the Fund changed its fiscal year-end from June
30 to February 28. Accordingly, prior year comparative
information is not provided.
(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 and six months ended
August 31, 2006 was $2,855,400 ($0.05 per common share) and
$4,409,555 ($0.08 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 (loss) in accordance with federal income tax treatment. In
addition, these figures include amortization of market premium of
$2,562,994 ($0.04 per common share) and $6,112,802 ($0.10 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 August 31, 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 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 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.