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AGIFM Announces Changes to the Annual Asset Allocation Rebalancing Policy of NFJ Dividend, Interest & Premium Strategy Fund

^{Published on 2011-10-05 21:21:35 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Allianz Global Investors Fund Management LLC (aAGIFMa), the investment manager of NFJ Dividend, Interest and Premium Strategy Fund (NYSE:NFJ) (the aFunda), announced that, effective today, the Funda™s annual asset allocation rebalancing policy has changed as described below.

The Fund pursues its investment objectives, in part, by investing in a diversified portfolio of dividend-paying common stocks (the "Equity Component") and income-producing convertible securities (the "Convertible Component"). Since inception, the Fund has observed a policy to rebalance its entire portfolio on an annual basis so that the Equity Component represents approximately 75% and the Convertible Component approximately 25% of its portfolio immediately after each rebalancing. In between annual rebalancings, the percentage of the Fund's assets represented by each component has varied based on relative investment performance, market fluctuations and other factors.

Under the Funda™s revised rebalancing policy, on a date in January of each year to be determined by AGIFM, if the allocation of the Funda™s assets falls outside the ranges of 70% to 80% for the Equity Component and 20% to 30% for the Convertible Component, AGIFM will cause a rebalancing of the Funda™s portfolio such that each Componenta™s allocation is adjusted back to a point within its range in relative percentages determined by AGIFM, based on input and recommendations from the Funda™s sub-adviser responsible for that Component. In addition, AGIFM may, but is not required to, cause the Fund to rebalance the Components to any point within their respective ranges at any time during the course of a year (whether the Components are then outside their ranges or at some other point within their ranges), based on input and recommendations from the sub-advisers and in light of market conditions, investment outlook, cash positions, tax considerations and other factors. Under the new policy, the relative percentages of the Funda™s assets represented by the Equity and Convertible Components may, however, vary outside of their ranges at any time and from time to time during the course of a year, and perhaps significantly, in relation to the relative investment performance of each Component, as well as market fluctuations and other factors.

At the recommendation of AGIFM, the Board of Trustees of the Fund approved the change to the Funda™s rebalancing policy in order to provide greater flexibility in managing the Funda™s portfolio and responding to changing market conditions. The Board and AGIFM believe that the change is in the best interests of the Fund and the Funda™s shareholders.

The Funda™s investment objective is to seek current income and gains, with a secondary objective of long-term capital appreciation. There can be no assurance that the Fund will meet its objectives.

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. NFJ Investment Group LLC (aNFJa) manages the Funda™s Equity Component and Allianz Global Investors Capital LLC (aAGICa) manages the Funda™s Convertible Component as well as its option strategies. Both NFJ and AGIC are affiliates of AGIFM.

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 of companies to attract or retain key employees, inability of companies to implement their operating strategies and/or acquisition strategies, and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations.