NEW YORK, May 7, 2009 (GLOBE NEWSWIRE) -- Nicholas-Applegate Convertible & Income Fund II (the "Fund") (NYSE:NCZ), 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.
Feb. 28, 2009 Feb. 29, 2008
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Net Assets (a) $537,219,562 $1,240,359,594
Common Shares Outstanding 59,994,092 59,407,723
Net Asset Value ("NAV") $4.39 $12.38
Market Price $3.73 $12.09
Discount to NAV (15.03)% (2.34)%
Undistributed (Overdistributed)
Net Investment Income Per Common
Share (b) $0.1229 $(0.0074)
Quarter ended
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Feb. 28, 2009 Feb. 29, 2008
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Net Investment Income (c) $16,141,280 $20,592,966
Per Common Share (c) $0.27 $0.36
Net Realized and Change in Unrealized
Loss (c) $(14,398,643) $(87,754,291)
Per Common Share (c) $(0.23) $(1.47)
Year ended
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Feb. 28, 2009 Feb. 29, 2008
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Net Investment Income (c) $92,530,381 $100,319,284
Per Common Share (c) $1.55 $1.70
Net Realized and Change in Unrealized
Loss (c) $(480,209,549) $(129,012,362)
Per Common Share (c) $(8.05) $(2.17)
(a) Net assets are inclusive of market value of Preferred Shares of
$274 million and $505 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
$339,364 ($0.01 per common share) and market premium amortization
of $2,882,375 ($0.05 per common share), respectively. Net
Investment Income for the fiscal quarter and year ended February
29, 2008 includes amortization of market premium of $627,441
($0.01 per common share) and $4,204,216 ($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 $1,566,309 ($0.03 per common share) and $10,656,169
($0.18 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.