NEW YORK, Sept. 11, 2006 (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 ended May 31, 2006.
At May 31, 2006 At May 31, 2005
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Net Assets (a) $1,541,859,539 $1,518,003,957
Common Shares Outstanding 69,609,412 67,683,324
Net Asset Value ("NAV") $14.61 $14.67
Market Price $15.51 $15.31
Premium to NAV 6.16% 4.36%
Quarter ended Quarter ended
May 31, 2006 May 31, 2005
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Net Investment Income (b) $28,907,826 $24,044,339
Per Common Share (b) $0.42 $0.35
Net Realized and Change
in Unrealized Loss (b) $(11,971,540) $(89,377,730)
Per Common share (b) $(0.17) $(1.32)
3 Month Average Undistributed
(Overdistributed) Net
Investment Income Per Common
Share (b)(c) $(0.0585) 0.1328
(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 ended May 31, 2006
was $1,615,706 ($0.02 per common share), lower and Net Realized
and Change in Unrealized Loss correspondingly 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.
By using GAAP, Net Investment Income for the fiscal quarter ended
May 31, 2005 was $1,265,633 ($0.02 per common share), lower and
Net Realized and Change in Unrealized Loss correspondingly 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 $1,086,402 ($0.02 per common share) for the fiscal quarter
ended May 31, 2006 and $2,431,771 ($0.04 per common share) for
the fiscal quarter ended May 31, 2005. 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 May 31, 2006 and May 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 advisor.