NEW YORK, Aug. 16, 2005 (PRIMEZONE) -- NEW YORK, August 16, 2005 -- 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, 2005.
At May 31, 2005 At May 31, 2004 --------------- --------------- Net Assets (a) $1,518,003,957 $1,588,231,731 Common Shares Outstanding 67,683,324 66,193,927 Net Asset Value ("NAV") $14.67 $16.06 Market Price $15.31 $15.30 Premium (Discount) to NAV 4.36% (4.73)% (a) Net assets are inclusive of $525 million Preferred shares issuance. Quarter ended Quarter ended May 31, 2005 May 31, 2004 ------------ ------------ Net Investment Income $24,044,339 (b) $18,687,272 Per Common Share $0.35 (b) $0.28 Net Realized and Change in Unrealized Loss $(89,377,730)(b) $(38,372,902) Per Common share $(1.32)(b) $(0.58) 3 Month Average Undistributed Net Investment Income Per Common Share (c) $0.1328 N/A (b) The information provided is in accordance with generally accepted accounting principles ("GAAP"), which requires the Fund to treat amounts received by the Fund under interest rate caps 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 quarter ended ended May 31, 2005 was $1,265,633 ($0.019 per common share) lower (and Net Realized and Change in Unrealized Loss correspondingly higher) than those figures would be if the interest rates caps were treated as net income (loss) in accordance with federal income tax treatment. In addition, these figures include amortization of market premium of $2,431,771 (0.036 per common share.) For tax purposes, the Fund has elected not to amortize market premium on corporate and convertible bonds and notes. (c) Calculated using the month-end tax-basis balances for the three months ended May 31, 2005. Please note that there is a close correlation between what 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 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.
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 www.allianzinvestors.com/closedendfunds or by calling the Fund's transfer agent at 1-800-331-1710.
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.