NEW YORK, Aug. 8, 2008 (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 ended May 31, 2008.
At May 31, 2008 At May 31, 2007
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Net Assets (a) $1,253,111,039 $1,422,807,362
Common Shares Outstanding 59,407,723 59,171,971
Net Asset Value ("NAV") $12.59 $15.51
Market Price $12.72 $15.96
Premium to NAV 1.03% 2.90%
Quarter ended Quarter ended
May 31, 2008 May 31, 2007
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Net Investment Income (b) $28,734,685 $35,992,137
Per Common Share (b) $0.48 $0.61
Net Realized and Change in
Unrealized Gain (b) $9,631,195 $26,645,442
Per Common Share (b) $0.16 $0.45
Undistributed Net Investment
Income Per Common Share (c)(d) $0.0543 $0.2816
(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 ended May 31, 2007 was
$2,896,456 ($0.05 per common) lower and Net Realized and Change
in Unrealized Gain correspondingly higher than these figures
would have been if payments received from interest rate cap
agreements were treated as net income in accordance with federal
tax treatment.
Net Investment Income for the fiscal quarters ended May 31, 2008
and May 31, 2007 includes amortization of market premium of
$548,061 ($0.01 per common share) and $1,439,992 ($0.02 per
common share), respectively. For tax purposes, the Fund has
elected not to amortize market premium on corporate bonds.
(c) Calculated using the accumulated balance at the end of the
period.
(d) 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 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.
These figures are 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. There can be no guarantee the Fund will meet its investment objective. In making an investment decision, individuals should utilize other information sources and the advice of their own professional adviser.