NEW YORK, Feb. 13, 2007 (PRIME NEWSWIRE) -- 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 and nine months ended November 30, 2006.
At November 30, 2006 At November 30, 2005
-------------------- --------------------
Net Assets (a) $1,556,479,851 $1,542,183,595
Common Shares Outstanding 70,430,792 68,353,309
Net Asset Value ("NAV") $14.65 $14.88
Market Price $15.93 $15.08
Premium to NAV 8.74% 1.34%
Quarter ended Quarter ended
November 30, 2006 November 30, 2005
----------------- -----------------
Net Investment Income (b) $31,123,124 $23,218,081
Per Common Share (b) $0.43 $0.34
Net Realized and Change
in Unrealized Gain $27,209,295 $(22,232,633)
Per Common Share (b) $0.36 $(0.32)
3 Month Average
Undistributed
Net Investment Income
Per Common Share (c) $0.0011 $0.1122
Nine Months ended Nine Months ended
November 30, 2006 November 30, 2005
----------------- ------------------
Net Investment Income (b) $85,489,850 $ 72,809,004
Per Common Share (b) $1.21 $1.07
Net Realized and Change
in Unrealized Gain $20,740,567 $(48,459,255)
Per Common share (b) $0.29 $(0.71)
(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 and nine months ended November 30, 2006 was $3,121,708
($0.04 per common share) and $7,705,899 ($0.11 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 in accordance with
federal income tax treatment. By using GAAP, Net Investment
Income for the fiscal quarter and nine months ended November 30,
2005 was $2,631,601 ($0.05 per common share) and $5,723,042
($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 in
accordance with federal income tax treatment.
In addition, these figures include amortization of market
premium of $5,182,603 ($0.08 per common share) and $12,407,277
($0.18 per common share) for the fiscal quarter and nine months
ended November 30, 2006, respectively and $2,734,656
($0.05 per common share) and $7,985,927 ($0.13 per common
share) for the fiscal quarter and nine months ended November
30, 2005, 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 November 30, 2006 and November 30, 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 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 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 athttp://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.