NIE Virtus Equity and Convertible Income Fund

Allianz Global Investors Fund Management LLC (“AGIFM”), investment manager to Nicholas-Applegate Equity & Convertible Income Fund (NYSE:NIE), Nicholas-Applegate International & Premium Strategy Fund (NYSE:NAI) and Nicholas-Applegate Global Equity & Convertible Income Fund (NYSE:NGZ) (each a “Fund” and collectively, the “Funds”) announced that the descriptions of the Funds’ option writing strategies (each an “Option Strategy”) have been revised as follows regarding the extent to which the strategies may be utilized.

NIE

NIE employs its Option Strategy by writing (selling) call options on stocks held in the Fund’s equity securities portfolio (the “Equity Component”). When the Fund writes a call option on an individual stock held in the Equity Component, it will ordinarily do so with respect to approximately 70% of the value of the position. Therefore, if the Fund determines to write call options on all or substantially all of the individual stocks held in the Equity Component, it is expected that the Fund will have written call options positions with respect to approximately 70% of the aggregate value of the Equity Component. However, the extent of the Fund’s use of the Option Strategy will vary depending on market conditions and other factors, and the Fund may determine from time to time to write call options on only a portion, or none, of the individual stocks held in the Equity Component.

NAI

In implementing NAI’s Option Strategy, the sub-adviser will “sell” or “write” call options on stocks held in the Fund’s international equity portfolio and on equity indexes. When the Fund writes a call option on an individual stock held in the international equity portfolio, it will generally do so with respect to approximately 70% of the value of the position, and when it writes a call option on an equity index, the face or notional amount of the index subject to the option will generally be equal to approximately 70% of the value of the corresponding securities in the international equity portfolio. Therefore, if the Fund determines to write call options on all or substantially all of the securities held in the international equity portfolio, it is expected that the Fund will have written call options positions with respect to approximately 70% of the aggregate value of the international equity portfolio. However, the extent of the Fund’s use of the Option Strategy will vary depending on market conditions and other factors, and the Fund may determine from time to time to write call options (whether they be on individual stocks and/or or on equity indexes) with respect to only a portion, or none, of the securities held in the international equity portfolio.

NGZ

In implementing NGZ’s Option Strategy, the sub-adviser will “sell” or “write” call options on stocks held in the Fund’s equity securities portfolio (the “Equity Component”) and on equity indexes. When the Fund writes a call option on an individual stock held in the Equity Component, it will generally do so with respect to approximately 70% of the value of the position, and when it writes a call option on an equity index, the face or notional amount of the index subject to the option will generally be equal to approximately 70% of the value of the corresponding securities in the Equity Component. Therefore, if the Fund determines to write call options on all or substantially all of the securities held in the Equity Component, it is expected that the Fund will have written call options positions with respect to approximately 70% of the aggregate value of the Equity Component. However, the extent of the Fund’s use of the Option Strategy will vary depending on market conditions and other factors, and the Fund may determine from time to time to write call options (whether they be on individual stocks and/or or on equity indexes) with respect to only a portion, or none, of the securities held in the Equity Component.

Each Fund’s Option Strategy, to the extent utilized, is designed to generate gains from option premiums in an attempt to enhance distributions payable to the Fund’s shareholders and to reduce overall portfolio risk. However, there is no assurance that a Fund’s Option Strategy will achieve its objectives. There are various risks associated with the Funds’ Option Strategies, including that a Fund forgoes, during the life of a written call option, the opportunity to profit from increases in the market value of the underlying security or securities held by the Fund (in the case of an index option, to the extent the performance of the index is correlated with the corresponding securities held by the Fund) with respect to which the option was written above the sum of the premium and the strike price of the call. Therefore, an Option Strategy generally limits a Fund’s ability to benefit from the full upside potential of its equity holdings, while the Fund retains the risk of loss (net of premiums received) should the price of the Fund’s portfolio securities decline. The use of written call options by the Funds also potentially involves correlation, liquidity, valuation, tax and other risks.

The Board of Trustees formally approved the revised descriptions of the Option Strategies of NIE, NAI and NGZ based on the recommendation from AGIFM and the Funds’ sub-adviser, Nicholas-Applegate Capital Management LLC (“NACM”).

The investment objective of NIE and NGZ is to seek total return comprised of capital appreciation, current income and gains. NAI seeks total return comprised of current income, current gains and long-term capital appreciation. There can be no assurance that the Funds will meet their objectives.

AGIFM, an indirect, wholly-owned subsidiary of Allianz Global Investors of America L.P., serves as the Funds' investment manager and is a member of Munich-based Allianz Group. NACM, an Allianz Global Investors Fund Management affiliate, serves as each Fund’s sub-adviser.

The Funds' 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 Funds' 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 Funds’ 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. Each Fund’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.

Grafico Azioni Virtus Equity and Conver... (NYSE:NIE)
Storico
Da Giu 2024 a Lug 2024

Grafico Azioni Virtus Equity and Conver... (NYSE:NIE)
Storico
Da Lug 2023 a Lug 2024