NEW YORK, May 9, 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 and year ended February 28, 2006.
At February 28, At February 28,
2006 2005
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Net Assets (a) $1,542,778,578 $1,611,001,319
Common Shares Outstanding 69,270,294 67,565,052
Net Asset Value ("NAV") $14.69 $16.07
Market Price $15.69 $15.82
Premium (Discount) to NAV 6.81% (1.56)%
Quarter ended Quarter ended
February 28, February 28,
2006 2005
---------------- ----------------
Net Investment Income $30,208,764 (b) $24,203,997
Per Common Share $0.44 (b) $0.36
Net Realized and Change in
Unrealized Gain $16,662,878 (b) $17,674,276
Per Common share $0.23 (b) $0.27
3 Month Average
Overdistributed
Net Investment Income Per
Common Share (c) $(0.0024) N/A
Year ended Year ended
February 28, February 28,
2006 2005
---------------- ----------------
Net Investment Income $103,017,768 (b) $98,689,848
Per Common Share $1.51 (b) $1.48
Net Realized and Change in
Unrealized Gain (Loss) $(31,796,377)(b) $25,264,315
Per Common Share $(0.48)(b) $0.38
(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 year ended February 28, 2006 was $2,403,005 ($0.04 per common share) and $8,126,077 ($0.12 per common share), respectively, lower and Net Realized and Change in Unrealized Gain (Loss) correspondingly higher 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, the fiscal quarter ended February 28, 2006 figure includes an adjustment to amortization of market premium of $(308,714) ($(0.004) per common share). The fiscal year ended February 28, 2006 figure includes amortization of market premium of $7,677,213 ($0.11 per common share). For tax purposes, the Fund has elected not to amortize market premium.
(c) Calculated using the month-end tax-basis balances for the three months ended February 28, 2006. 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. This figure is inclusive of amounts received under interest rate cap agreements, in accordance with federal income tax treatment and excludes market premium which the Fund, for tax purposes, has elected not to amortize.
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.