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Allianz Global Investors Fund Management LLC Provides Statement on Demand Letter Regarding Auction Rate Preferred Shares

^{Published on 2010-07-08 17:00:38 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Allianz Global Investors Fund Management LLC (aAGIFMa), investment manager to Nicholas-Applegate Convertible & Income Fund (NYSE: NCV) (the aFunda), announced today that the Fund received a demand letter from a law firm on behalf of certain common shareholders of the Fund.

The demand letter alleges that AGIFM and certain officers and Trustees of the Fund breached their fiduciary duties in connection with the redemption at par of a portion of the Funda™s auction rate preferred shares (aARPSa) and demands that the Board of Trustees take certain action to remedy those alleged breaches. The independent Trustees of the Board of the Fund are evaluating the demand letter.

AGIFM, an indirect, wholly-owned subsidiary of Allianz Global Investors of America L.P., serves as the Funda™s investment manager and is a member of Munich-based Allianz Group. Nicholas-Applegate Capital Management LLC, an AGIFM affiliate, serves as the Funda™s sub-adviser. The Funda™s New York Stock Exchange closing prices, net asset values per share, as well as other information, including updated portfolio statistics and performance, is available at [ http://www.allianzinvestors.com ] or by calling the Funda™s shareholder servicing agent at (800) 254-5197.

Statements made in this release that look forward in time involve risks and uncertainties and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such risks and uncertainties include, without limitation, the adverse effect from further declines in the securities markets and in the Funda™s performance, a general downturn in the economy, competition from other companies, changes in government policy or regulation, inability to attract or retain key employees, inability to implement their operating strategy and/or acquisition strategy, and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations. The Funda™s ability to pay dividends to common shareholders is subject to the restrictions in its registration statement and other governing documents as well as the Investment Company Act of 1940.