NEW YORK, May 7, 2009 (GLOBE NEWSWIRE) -- Nicholas-Applegate Convertible & Income Fund (the "Fund") (NYSE:NCV), a diversified 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 year ended February 28, 2009.
February 28, February 29,
2009 2008
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Net Assets (a) $705,543,515 1,420,042,871
Common Shares Outstanding 72,559,997 71,506,712
Net Asset Value ("NAV") $4.80 $12.52
Market Price $4.05 $12.50
Discount to NAV (15.63)% (0.16)%
Overdistributed Net Investment Income
Per Common Share (b) $(0.0320) $(0.1056)
Quarter ended
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February 28, February 29,
2009 2008
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Net Investment Income (c) $21,319,846 $23,305,953
Per Common Share (c) $0.30 $0.33
Net Realized and Change in
Unrealized Loss (c) $(13,595,894) $(100,046,275)
Per Common Share (c) $(0.20) $(1.39)
Year ended
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February 28, February 29,
2009 2008
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Net Investment Income (c) $112,099,864 $115,099,932
Per Common Share (c) $1.56 $1.62
Net Realized and Change in
Unrealized Loss (c) $(557,765,157) $(146,904,730)
Per Common Share (c) $(7.75) $(2.05)
(a) Net assets are inclusive of market value of Preferred Shares of
$357 million and $525 million at February 28, 2009 and
February 29, 2008, respectively.
(b) 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 (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. Inclusive of amounts received under
interest rate cap agreements (for the year ended
February 29, 2008), in accordance with federal income tax
treatment and excludes market premium amortization on
corporate bonds.
(c) Net Investment Income for the fiscal quarter and year ended
February 28, 2009 includes market premium amortization of
$701,609 ($0.01 per common share) and $3,258,954 ($0.05 per
common share), respectively. Net Investment Income for the fiscal
quarter and year ended February 29, 2008 includes market premium
amortization of $792,780 ($0.01 per common share) and $4,731,806
($0.07 per common share), respectively. For tax purposes, the
Fund has elected not to amortize market premium on corporate
bonds.
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 year ended
February 29, 2008 was $1,628,341 ($0.02 per common share) and
$11,078,195 ($0.15 per common share) lower, respectively (and Net
Realized and Change in Unrealized Loss correspondingly 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. The Fund did not
engage in interest rate cap agreement transactions during the
year ended February 28, 2009.
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 (866) 298-8462.
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 assurance that the Fund will meet its objective. The Fund's ability to pay dividends to common shareholders is subject to the restrictions in their registration statements, By-laws and other governing documents as well as the Investment Company Act of 1940. In making any investment decision, individuals should utilize other information sources and the advice of their own professional adviser.