The Fund invests in a portfolio comprised of approximately 60% equity securities and 40% convertible securities. The equity portion may vary from 40% to 80% of assets and the convertible portion may vary from 20% to 60% of assets.
The Fund will employ an option strategy by writing (selling) call options on stocks held in the equity component to generate gains from option premiums in an attempt to enhance distributions payable to the Fund's shareholders and to reduce overall portfolio risk. The Fund expects to ordinarily write call options with respect to approximately 70% of the value of each position.
The Fund's portfolio managers believe that the flexibility to use a varying mix of these asset classes and strategies for the Fund will create an “all-weather” portfolio that can provide investors with attractive equity market exposure and current income potential in different market environments.
Investment Process
In selecting equity investments for the Fund, Nicholas-Applegate Capital Management ordinarily looks for strong fundamental characteristics including, among others: above-average earnings growth; high return on invested capital; a healthy or improving balance sheet; strong competitive advantages, and development of new technologies.
For the convertibles portion of the portfolio, Nicholas-Applegate Capital Management evaluates each security's potential for capital appreciation, using techniques that focus on the security's equity characteristics as described above. Nicholas-Applegate Capital Management also uses traditional credit analysis in evaluating each convertible security’s investment characteristics as an income-producing security.
With the call option strategy, individual equity call options are generally written 5%-10% “out of the money” to retain the upside potential up to the respective strike price.
At A Glance
Symbol Lookup
Symbol
CUSIP
NIE
65370K100
Objective Seeks total return comprised of capital appreciation, current income and gains.
Assets (in millions)
Common
$498.6
Preferred
Total
$498.6
Inception Date
Feb 27, 2007
Shares Outstanding
22,304,189
Avg. Daily Volume
67,384
NAV Yield
10.06%
Market Price Yield
11.19%
Taxable Equivalent Yield
-
Managers
Douglas Forsyth
Douglas Forsyth, C.F.A., is Senior Portfolio Manager and a member of NACM's Executive Committee. He joined the firm in 1994 and has a B.B.A. from the University of Iowa.
Horacio Valeiras
Horacio Valeiras is Chief Investment Officer of the firm as well as Head of the research team that oversees Nicholas-Applegate's systematic equity strategies.
Management Firm
Nicholas-Applegate Capital Management LLC (NACM)
San Diego, California
Nicholas-Applegate applies a change-focused investment philosophy to domestic and international portfolios across fundamental and systematic equity, income and growth strategies. Each strategy in the firm's diverse line-up follows one of two signature approaches: traditional or model-driven.
This information is intended for informational purposes only. This is not an offer or solicitation for the purchase or sale of any financial instrument.
The Fund is a closed-end exchange traded investment company. The material on this website is presented only to provide information and is not intended for trading purposes. Closed-end funds, unlike open-end funds, are not continuously offered. After the initial public offering, shares of closed-end funds are sold in the open market through a stock exchange. For additional information, contact your financial advisor or call 1-800-331-1710. Investment policies, management fees and other matters of interest to prospective investors may be found in each closed-end fund prospectus.
The primary objective of the Fund is to seek total return comprised of capital appreciation, current income and gains. The Fund's Equity Component will ordinarily consist of common stocks, but may also include other types of equity securities, including preferred stocks, depository receipts, rights and warrants. The Fund may invest in securities of companies with any size market capitalization, but ordinarily expects to focus its equity investments in companies with market capitalizations of $3 billion or more at the time of investment. The Fund may purchase securities in initial public offerings (“IPOs”).
The Fund's Convertible Component will ordinarily consist principally of income-producing convertible securities, including bonds, debentures, notes, preferred stocks, and other securities or investments that may be converted or exchanged (by the holder or issuer) into equity securities of the issuer (or cash or securities of equivalent value), as well as synthetic convertible securities. Investing in convertible securities may entail risk. The Funds that invest in convertibles may have to convert the securities before they would otherwise, which may have an adverse effect on the Fund's ability to achieve its investment objective. The Convertible Component may include convertible and other debt securities that are of below investment grade quality. High-yield bonds typically have a lower credit rating than other bonds. Lower rated bonds generally involve a greater risk to principal than higher rated bonds.
The Fund will ordinarily invest principally in securities of U.S. issuers. The Fund may invest without limit in securities of non-U.S. issuers that trade on U.S. securities markets, such as American Depository Receipts (“ADRs”). Up to 20% of the Fund's total assets may be invested in other non-U.S. equity and debt securities, including securities of issuers that are organized or headquartered in developing or “emerging market” countries. Investing in non-U.S. securities entails additional risks, including political and economic risk and the risk of currency fluctuations; these risks may be enhanced in emerging markets.
The Fund will employ its Option Strategy by writing (selling) call options on stocks held in the Equity Component. The Fund may also utilize other derivative strategies involving call and put options, futures and forward contracts, swap agreements, short sales and other derivative instruments for investment purposes or in an attempt to hedge against market and other risks in the portfolio. Use of derivative instruments may involve certain costs and risks such as liquidity risk, interest rate risk, market risk, credit risk, management risk and the risk that a fund could not close out a position when it would be most advantageous to do so. Portfolios investing in derivatives could lose more than the principal amount invested in these instruments.
Allianz Global Investors Fund Management LLC, is an indirect, majority-owned subsidiary of Allianz Global Investors of America L.P., and is a member of Munich-based Allianz Group (NYSE | AZ). Allianz is a leading global financial services company. Allianz Global Investors Fund Management LLC serves as the Funds' investment manager, and the sub-advisor is Nicholas Applegate Capital Management LLC (NACM).
Investment Products: NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED
