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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act File Number: 811-21284
Registrant Name: NICHOLAS-APPLEGATE CONVERTIBLE & INCOME FUND
Address of Principal Executive Offices: 1345 Avenue of the Americas New York,
New York 10105
Name and Address of Agent for Service: Lawrence G. Altadonna - 1345 Avenue of
the Americas New York, New York 10105
Registrant's telephone number, including area code: 212-739-3371
Date of Fiscal Year End: 2/28
Date of Reporting Period: 11/30
Form N-Q is to be used by the registered management investment company, other
than a small business investment company registered on Form N-5 (ss.ss. 239.24
and 274.5 of this chapter), to file reports with the Commission, not later than
60 days after the close of the first and third fiscal quarters, pursuant to rule
30b 1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The
Commission may use the information provided on Form N-Q in its regulatory,
disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and
the Commission will make this information public. A registrant is not required
to the collection of information contained in Form N-Q unless the Form displays
a currently valid Office of Management and Budget ("OMB") control number. Please
direct comments concerning the accuracy of the information collection burden
estimate and any suggestions for reducing the burden to the Secretary,
Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC
20549-0609. The OMB has reviewed this collection of information under the
clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. SCHEDULE OF INVESTMENTS
NICHOLAS-APPLEGATE CONVERTIBLE & INCOME FUND
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 2004
(UNAUDITED)
PRINCIPAL
AMOUNT CREDIT RATING
(000) (MOODY'S/S&P) VALUE
---------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS & NOTES - 44.2%
ADVERTISING-0.8%
$10,000 RH Donnelley Financial Corp., 10.875%, 12/15/12 ................ B2/B+ $ 11,950,000
---------------
APPAREL-0.4%
3,260 Oxford Industries, Inc., 8.875%, 6/1/11 ........................ B2/B 3,520,800
1,575 Phillips-Van Heusen Corp., 8.125%, 5/1/13 ...................... B2/BB- 1,697,063
580 Warnaco, Inc., 8.875%, 6/15/13 ................................. B2/B 639,450
---------------
5,857,313
---------------
AUTOMOTIVE-1.6%
7,200 Collins & Aikman Products Corp., 10.75%, 12/31/11 .............. B2/B- 7,290,000
9,620 Collins & Aikman Products Corp., 12.875%, 8/15/12 (a) .......... B3/B- 8,273,200
9,473 HLI Operating Co., Inc., 10.50%, 6/15/10 ....................... B1/B+ 10,136,110
---------------
25,699,310
---------------
BUILDING & CONSTRUCTION-0.7%
5,000 US Concrete Inc., 8.375%, 4/1/14 ............................... B3/B- 5,350,000
5,000 William Lyon Homes Inc., 10.75%, 4/1/13 ........................ B2/B 5,625,000
---------------
10,975,000
---------------
CHEMICALS-2.9%
2,700 Huntsman LLC., 11.50%, 7/15/12 (a) ............................. B3/CCC+ 3,179,250
8,800 Huntsman LLC., 11.625%, 10/15/10 ............................... B2/B 10,472,000
8,555 Lyondell Chemical Co., 9.625%, 5/1/07, Ser. A .................. B1/B+ 9,431,888
5,115 Lyondell Chemical Co., 10.875%, 5/1/09, Ser. A ................. B3/B- 5,396,325
10,545 PolyOne Corp., 10.625%, 5/15/10 ................................ B3/B+ 11,889,487
5,810 Rhodia SA., 10.25%, 6/1/10 ..................................... B3/CCC+ 6,478,150
---------------
46,847,100
---------------
COMMERCIAL SERVICES-1.7%
14,490 Integrated Electrical Services Inc., 9.375%, 2/1/09, Ser. C .... Caa1/NR 11,592,000
3,000 Memberworks Inc., 9.25%, 4/1/14 (a) ............................ B2/B 3,180,000
11,000 Xerox Corp., 9.75%, 1/15/09 .................................... Ba2/B+ 12,870,000
---------------
27,642,000
---------------
CONTAINERS-0.0%
170 Stone Container Corp., 8.375%, 7/1/12 .......................... B2/B 186,150
---------------
ELECTRONICS-2.0%
7,000 Flextronics International Ltd., 6.25%, 11/15/14 ................ Ba2/BB- 6,842,500
5,160 IMAX Corp., 9.625%, 12/1/10 .................................... B3/B- 5,572,800
9,015 Sanmina-SCI Corp., 10.375%, 1/15/10 ............................ Ba2/BB- 10,367,250
4,500 Seitel Inc., 11.75%, 7/15/11 (a) ............................... B3/B- 4,680,000
3,415 Stoneridge, Inc., 11.50%, 5/01/12 .............................. B1/B+ 3,995,550
---------------
31,458,100
---------------
ENERGY-0.8%
11,000 Reliant Resources Inc., 9.50%, 7/15/13 ......................... B1/B+ 12,622,500
---------------
ENTERTAINMENT-0.9%
13,305 Alliance Atlantis Communications, Inc., 13.00%, 12/15/09 ....... WR/NR 14,203,087
---------------
FINANCE-0.3%
3,885 Metris Companies Inc., 10.125%, 7/15/06 ........................ Caa2/CCC 3,991,837
---------------
FINANCIAL SERVICES-0.4%
5,750 Alamosa Delaware Inc., 11.00%, 7/31/10 ......................... Caa1/CCC 6,713,125
---------------
FOOD PRODUCTS-0.8%
2,370 Pilgrim's Pride Corp., 9.25%, 11/15/13 ......................... B2/B+ 2,666,250
8,820 Pilgrim's Pride Corp., 9.625%, 9/15/11 ......................... B1/BB- 9,911,475
---------------
12,577,725
---------------
HEALTHCARE-1.0%
2,316 Hanger Orthopedic Group, Inc., 11.25%, 6/15/09 ................. WR/CCC+ 2,420,220
NICHOLAS-APPLEGATE CONVERTIBLE & INCOME FUND
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 2004
(UNAUDITED)(CONTINUED)
PRINCIPAL
AMOUNT CREDIT RATING
(000) (MOODY'S/S&P) VALUE
---------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS & NOTES (CONTINUED)
HEALTHCARE (CONTINUED)
$1,000 Medcath Holdings Corp., 9.875%, 7/15/12 ........................ Caa1/B- $ 1,085,000
2,250 National Mentor Inc., 9.625%, 12/1/12 (a) ...................... B3/B- 2,373,750
7,005 Select Medical Corp., 9.50%, 6/15/09 ........................... B2/B 7,617,937
2,365 Vicar Operating, Inc., 9.875%, 12/1/09 ......................... B2/B 2,589,675
---------------
16,086,582
---------------
HOME BUILDERS-1.1%
12,325 Ryland Group, Inc., 9.125%, 6/15/11 ............................ Ba2/BB+ 13,788,594
3,865 Standard-Pacific Corp., 9.50%, 9/15/10 ......................... Ba2/BB 4,183,862
---------------
17,972,456
---------------
HOME FURNISHINGS-1.1%
10,290 Central Garden & Pet Co., 9.125%, 2/1/13 ....................... B2/B+ 11,524,800
5,340 Jarden Corp., 9.75%, 5/1/12 .................................... B2/B- 5,820,600
---------------
17,345,400
---------------
HOTELS/GAMING-2.8%
10,500 Mandalay Resort Group, Inc., 10.25%, 8/1/07 .................... Ba3/BB- 11,891,250
17,910 Penn National Gaming, Inc., 8.875%-11.125%, 3/1/08-3/15/10 ..... B2/B 19,269,538
4,350 Venetian Casino Corp., 11.00%, 6/15/10 ......................... B2/B 4,959,000
7,311 Wynn Resorts Ltd., 12.00%, 11/1/10 ............................. B3/B- 9,211,860
---------------
45,331,648
---------------
LEISURE-1.6%
11,624 Bally Total Fitness Holdings Corp., 9.875%, 10/15/07, Ser. D ... Caa2/CCC 9,124,840
8,000 Equinox Holding Inc., 9.00%, 12/15/09 .......................... B3/B- 8,480,000
6,320 Royal Caribbean Cruises, Inc., 8.75%, 02/2/11 .................. Ba2/BB+ 7,426,000
---------------
25,030,840
---------------
MACHINERY-0.9%
12,970 Case New Holland Inc., 9.25%, 8/1/11 (a) ....................... Ba3/BB- 14,364,275
---------------
MANUFACTURING-0.4%
5,650 Jacuzzi Brands Inc., 9.625%, 7/1/10 ............................ B3/B 6,469,250
---------------
METALS & MINING-0.9%
11,800 AK Steel Corp., 7.875%, 2/15/09 ................................ B3/B+ 12,006,500
2,540 Oregon Steel Mills Inc., 10.00%, 7/15/09 ....................... B2/B 2,857,500
---------------
14,864,000
---------------
MISCELLANEOUS-2.9%
46,020 Dow Jones CDX High Yield, 10.50%, 12/29/09 (a) (b) ............. NR/NR 46,077,525
---------------
MULTI-MEDIA-2.9%
12,250 Charter Communications, Inc., 10.75%, 10/1/09 .................. Ca/CCC- 10,596,250
8,330 Echostar DBS Corp., 9.125%-10.375%, 10/1/07-1/15/09 ............ Ba3/BB- 9,173,413
5,430 Lodgenet Entertainment Corp., 9.50%, 6/15/13 ................... B3/B- 6,000,150
1,800 Salem Communications Holding Corp., 9.00%, 7/1/11, Ser. B ...... B2/B- 1,980,000
10,000 Spanish Broadcasting System, 9.625%, 11/1/09 ................... Caa1/CCC+ 10,500,000
6,581 XM Satellite Radio Inc., 12.00%, 6/15/10 ....................... Caa1/CCC+ 7,798,485
---------------
46,048,298
---------------
OFFICE FURNISHINGS-0.6%
5,375 Interface Inc., 9.50%, 2/1/14 (a) .............................. Caa3/CCC 5,831,875
3,246 Tempur-Pedic Inc., 10.25%, 8/15/10 ............................. B2/B 3,757,245
---------------
9,589,120
---------------
OIL & GAS-1.6%
330 Energy Partners Ltd., 8.75%, 8/1/10 ............................ B2/B+ 359,700
10,000 Petroleum Geo-Services ASA, 10.00%, 11/5/10 .................... NR/NR 11,400,000
13,330 Sonat, Inc., 7.625%, 7/15/11 ................................... Caa1/CCC+ 13,563,275
---------------
25,322,975
---------------
PAPER PRODUCTS-1.4%
7,840 Buckeye Technologies, Inc., 9.25%, 9/15/08 ..................... Caa1/B 7,840,000
12,650 Georgia-Pacific Corp., 9.375%, 2/1/13 .......................... Ba2/BB+ 14,737,250
---------------
22,577,250
---------------
PHARMACEUTICALS-0.3%
4,185 Leiner Health Products Corp., 11.00%, 6/1/12 ................... B3/CCC+ 4,561,650
---------------
REAL ESTATE-0.0%
470 La Quinta Properties Inc., 8.875%, 3/15/11 ..................... Ba3/BB- 525,225
---------------
RECYCLING-0.5%
6,700 Imco Recycling Inc., 10.375%, 10/15/10 ......................... B2/B 7,537,500
---------------
NICHOLAS-APPLEGATE CONVERTIBLE & INCOME FUND
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 2004
(UNAUDITED)(CONTINUED)
PRINCIPAL
AMOUNT CREDIT RATING
(000) (MOODY'S/S&P) VALUE
---------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS & NOTES (CONCLUDED)
RETAIL-2.8%
$8,620 Friendly's Ice Cream Corp., 8.375%, 6/15/12 .................... B2/B- $ 8,447,600
9,110 Michaels Stores, Inc., 9.25%, 7/1/09 ........................... Ba1/BB+ 9,770,475
4,240 Mothers Work Inc., 11.25%, 8/1/10 .............................. B3/B 4,155,200
15,445 Rite Aid Corp., 11.25%, 7/1/08 ................................. Caa1/B- 16,835,050
4,000 United Auto Group, Inc., 9.625%, 3/15/12 ....................... B3/B 4,470,000
---------------
43,678,325
---------------
SEMI-CONDUCTORS-0.8%
5,725 Amkor Technology, Inc., 10.50%, 5/1/09 ......................... Caa1/CCC+ 5,352,875
7,195 Fairchild Semiconductor International, Inc., 10.50%, 2/1/09 .... B2/B 7,644,688
---------------
12,997,563
---------------
TELECOMMUNICATIONS-5.4%
6,427 American Tower Corp., 7.125%-9.375%, 2/1/09-10/15/12 ........... B3/CCC 6,695,485
15,395 Crown Castle International, Inc., 9.00%-10.75%, 5/15/11-8/1/11 . B3/CCC 16,690,550
13,255 Millicom International Cellular S.A., 10.00%, 12/1/13 (a) ...... B3/B- 13,685,788
6,395 Primus Telecommunications Group, 8.00%, 1/15/14 ............... B3/CCC 5,307,850
11,500 Primus Telecommunications Group, 12.75%, 10/15/09 ............. Caa2/CCC 10,810,000
13,500 SBA Communications Corp., 10.25%, 2/1/09 ....................... WR/CCC- 14,326,875
10,170 Time Warner Telecom, Inc., 10.125%, 2/1/11 ..................... B3/CCC+ 9,763,200
11,065 Triton PCS, Inc., 9.375%, 2/1/11 ............................... Ca/CCC 8,769,012
---------------
86,048,760
---------------
TEXTILES-0.5%
6,490 Interface, Inc., 10.375%, 2/01/10 .............................. Caa1/B- 7,463,500
---------------
UTILITIES-0.9%
13,025 AES Corp., 9.50%, 6/1/09 ....................................... B2/B- 14,848,500
---------------
WASTE DISPOSAL-0.5%
7,194 Allied Waste, Inc., 10.00%, 8/1/09, Ser. B ..................... Caa2/B+ 7,535,715
---------------
Total Corporate Bonds & Notes (cost-$681,208,461) 702,999,604
---------------
CONVERTIBLE BONDS & NOTES - 30.2%
AEROSPACE-1.1%
16,568 GenCorp, Inc., 5.75%, 4/15/07 .................................. Caa2/B 17,769,180
---------------
AIRLINES-1.9%
20,572 Continental Airlines, Inc., 4.50%, 2/1/07 ...................... Caa2/CCC+ 15,403,285
16,465 Northwest Airlines Corp., 6.625%-10.00%, 2/1/09-5/15/23 ........ Caa1/CCC+ 14,444,281
---------------
29,847,566
---------------
CHEMICALS-0.9%
6,500 Millennium Chemicals Inc., 4.00%, 11/15/23 ..................... B1/B+ 14,202,500
---------------
COMMERCIAL SERVICES-2.8%
11,150 Acxiom Corp., 3.75%, 2/15/09 ................................... Ba3/BB- 15,637,875
8,100 Bowne & Co., Inc., 5.00%, 10/1/33 .............................. B2/B- 8,565,750
2,850 Memberworks Inc., 5.00%, 10/1/10 ............................... NR/B- 3,149,250
16,564 Quebecor World Color Press, Inc., 6.00%, 10/1/07 ............... Ba1/BB+ 17,060,920
---------------
44,413,795
---------------
ELECTRONICS-1.5%
8,500 Agilent Technologies, Inc., 3.00%, 12/1/21 ..................... Ba2/BB 8,563,750
15,923 Cymer, Inc., 3.50%, 2/15/09 .................................... NR/B- 15,923,000
---------------
24,486,750
---------------
FINANCIAL SERVICES-0.3%
136 Genworth Financial Inc., 6.00%, 5/16/07 ........................ A2/A 4,276,380
---------------
FINANCING-1.3%
17,200 GATX Corp., 7.50%, 2/1/07 ...................................... Baa3/BBB- 20,296,000
---------------
HEALTHCARE-0.1%
1,600 Matria Healthcare Inc., 4.875%, 5/1/24 ......................... NR/B- 2,254,000
---------------
INTERNET-1.2%
18,800 E*Trade Group, Inc., 6.00%, 2/1/07 ............................. NR/B- 19,340,500
---------------
NICHOLAS-APPLEGATE CONVERTIBLE & INCOME FUND
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 2004
(UNAUDITED)(CONTINUED)
PRINCIPAL
AMOUNT CREDIT RATING
(000) (MOODY'S/S&P) VALUE
---------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS & NOTES (CONTINUED)
MANUFACTURING-2.6%
$14,400 The Goodyear Tire & Rubber Co., 4.00%, 6/15/34 (a) ............. B3/B- $ 18,396,000
2,500 The Goodyear Tire & Rubber Co., 7.857%, 8/15/11 ................ B3/B- 2,481,250
12,300 Tyco International Group S.A., 3.125%, 1/15/23 ................. Baa3/BBB 20,033,625
---------------
40,910,875
---------------
MULTI-MEDIA-2.4%
3,989 Charter Communications, Inc., 5.75%, 10/15/05 .................. Ca/NR 4,048,835
16,995 Echostar Communications Corp., 5.75%, 5/15/08 .................. B2/B 17,462,363
17,546 Liberty Media Corp., 3.25%, 3/15/31 ............................ Baa3/BBB- 16,317,780
---------------
37,828,978
---------------
OIL & GAS-1.6%
11,200 Kerr-McGee Corp., 5.25%, 2/15/10 ............................... Ba1/BBB- 12,096,000
7,339 St. Mary Land & Exploration Corp., 5.75%, 3/15/22 .............. NR/NR 12,990,030
---------------
25,086,030
---------------
PHARMACEUTICALS-0.3%
2,350 Ligand Pharmaceutical Inc., 6.00%, 11/16/07 .................... NR/NR 4,494,375
---------------
RETAIL-3.3%
14,259 Gap, Inc., 5.75%, 3/15/09 ...................................... Ba1/BB+ 19,713,068
6,355 Guitar Center, Inc., 4.00%, 7/15/13 ............................ B1/B+ 9,635,769
15,708 Sonic Automotive, Inc., 5.25%, 5/7/09 .......................... B3/B+ 15,688,365
7,300 The Pep Boys Inc., 4.25%, 6/1/07 ............................... B1/BB- 7,318,250
---------------
52,355,452
---------------
SEMICONDUCTORS-2.3%
15,300 Advanced Micro Devices., 4.50%-4.75%, 12/1/07-2/1/22 ........... B3/B- 19,163,125
17,742 Amkor Technology, Inc., 5.00%-5.75%, 6/1/06-3/15/07 ............ Caa1/CCC+ 17,112,266
---------------
36,275,391
---------------
SOFTWARE-1.1%
14,500 Computer Associates International, Inc., 5.00%, 3/15/07 ........ Ba1/BBB- 18,560,000
---------------
TELECOMMUNICATIONS-5.5%
19,000 American Tower Corp., 5.00%, 2/15/10 ........................... B3/CCC 19,071,250
15,900 CenturyTel, Inc., 9.00%, 12/15/09 .............................. Baa2/BBB+ 17,490,000
13,240 Crown Castle International, Inc., 4.00%, 7/15/10 ............... NR/CCC 23,815,450
10,200 NII Holdings Inc., 3.50%, 9/15/33 .............................. NR/NR 18,232,500
9,245 Nortel Networks Corp., 4.25%, 9/1/08 ........................... B3/B- 8,909,869
---------------
87,519,069
---------------
Total Convertible Bonds & Notes (cost-$458,992,445) 479,916,841
---------------
SHARES
(000)
--------------
CONVERTIBLE PREFERRED STOCK- 24.4%
AUTOMOTIVE-2.2%
326 Ford Motor Co Capital Trust II., 6.50%, 1/15/32 ................ Baa2/BB 17,109,347
698 General Motors Corp., Ser. C, 6.25%, 7/15/33 ................... Baa2/BBB- 18,682,200
---------------
35,791,547
---------------
BANKING-1.1%
322 Washington Mutual, Inc., 5.375%, 5/3/41 ........................ Baa1/BBB 17,575,775
---------------
COMMERCIAL SERVICES-1.2%
442 United Rentals, Inc., 6.50%, 8/1/28 ............................ B3/B 19,171,750
---------------
FINANCIAL SERVICES-1.2%
367 Capital One Financial Corp., 6.25%, 5/17/05 .................... Baa3/BBB- 19,783,672
---------------
INSURANCE-3.2%
537 Platinum Underwriters Holdings, Ltd., 7.00%, 11/16/05 .......... NR/NR 15,785,332
660 The PMI Group Inc., 5.875%, 11/15/06 ........................... A1/A 17,173,200
745 XL Capital Ltd., 6.50%, 5/15/07 ................................ A2/A 18,386,600
---------------
51,345,132
---------------
NICHOLAS-APPLEGATE CONVERTIBLE & INCOME FUND
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 2004
(UNAUDITED)(CONTINUED)
CREDIT RATING
SHARES (MOODY'S/S&P) VALUE
---------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK-(CONTINUED)
METALS & MINING-3.0%
$218 Arch Coal, 5.00%, 12/31/49 ..................................... B2/B+ $ 21,195,151
153 U.S. Steel Corp., 7.00%, 6/15/06, Ser. B ....................... NR/B- 25,971,412
---------------
47,166,563
---------------
MULTI-MEDIA-0.0%
0 Radio One, Inc., 6.50%, 7/15/05 ................................ B3/CCC+ 148,190
---------------
OIL & GAS-4.0%
248 Amerada Hess, 7.00%, 12/1/06 ................................... Ba3/BB 19,538,727
252 Chesapeake Energy Corp., 6.00%, 12/31/49 ....................... B3/B- 22,944,665
550 Oneok Inc., 8.50%, 2/16/06 ..................................... Baa1/BBB+ 19,134,500
23 Williams Cos Inc., 5.50%, 6/1/33 ............................... NR/B- 1,920,937
---------------
63,538,829
---------------
PHARMACEUTICALS-1.1%
335 Schering-Plough Corp., 6.00%, 9/14/07 .......................... Baa3/BBB 16,743,300
---------------
RETAIL-1.1%
689 Albertson's Inc., 7.25%, 5/16/07 ............................... Baa2/BBB 18,162,040
---------------
TELECOMMUNICATIONS-2.2%
28 Corning, Inc., 7.00%, 8/16/05 Ser. C ........................... B1/BB- 17,706,015
17,000 Nextel Communications Corp., 5.25%, 1/15/10 .................... Ba3/BB 17,340,000
---------------
35,046,015
---------------
UTILITIES-4.1%
109 AES Trust III, 6.75%, 10/15/29 ................................. Caa2/CCC+ 5,167,305
538 FPL Group, Inc., 8.00%, 02/16/06 ............................... NR/A- 30,698,730
492 PSEG Inc., 10.25%, 11/16/05 .................................... Baa3/BBB- 28,683,600
---------------
64,549,635
---------------
Total Convertible Preferred Stock (cost-$342,248,479) 389,022,448
---------------
Principal
Amount U.S. GOVERNMENT SECURITIES-1.2%
(000) United States Treasury Notes,
-------------- 10.75%, 8/15/05, (cost-$19,144,345) .......................... 19,036,422
$18,000 ---------------
TOTAL INVESTMENTS (cost-$1,501,593,730) - 100% $ 1,590,975,315
---------------
-----------------------------------------------------------------------------------------------------------------------------------
NOTES TO SCHEDULE OF INVESTMENTS
+ Portfolio securities and other financial instruments for which market
quotations are readily available are stated at market value. Portfolio
securities and other financial instruments for which market quotations are
not readily available or if a development/event occurs that may impact the
value of the security may be fair valued in good faith pursuant to
guidelines established by the Board of Trustees. The Fund's investments are
valued daily by an independent pricing service, dealer quotations, or are
valued at the last sale price on the exchange that is the primary market for
such securities, or the last quoted bid price for those securities for which
the over-the-counter market is the primary market for listed securities in
which there were no sales. Prices obtained from an independent pricing
service use information provided by market makers or estimates of market
value obtained from yield data relating to investments or securities with
similar characteristics. Short-term investments maturing in 60 days or less
are valued at amortized cost, if their original maturity was 60 days or
less, or by amortizing their value on the 61st day prior to maturity, if the
original term to maturity exceeded 60 days. The prices used by the Fund to
value securities may differ from the value that would be realized if the
securities were sold. The Fund's net asset value is determined daily at the
close of regular trading (normally, 4:00 p.m. Eastern time) on the New York
Stock Exchange.
(a) 144A-Security - Security exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in transactions
exempt from registration, typically only to qualified institutional
investors.
(b) Credit-linked trust certificate
GLOSSARY:
NR - Not Rated
WR- Withdrawal Rating
ITEM 2. CONTROLS AND PROCEDURES
(a) The registrant's President and Chief Executive Officer and Principal
Financial Officer have concluded that the registrant's disclosure controls and
procedures (as defined in Rule 30a-2(c) under the Investment Company Act of
1940, as amended are effective based on their evaluation of these controls and
procedures as of a date within 90 days of the filing date of this document.
(b) There were no significant changes in the registrant's internal controls or
in factors that could affect these controls subsequent to the date of their
evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.
ITEM 3. EXHIBITS
(a) Exhibit 99 Cert. - Certification pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: NICHOLAS-APPLEGATE CONVERTIBLE & INCOME FUND
By /s/ Brian S. Shlissel
President & Chief Executive Officer
Date: January 27, 2005
By /s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer
Date: January 27, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dated indicated.
By /s/ Brian S. Shlissel
President & Chief Executive Officer
Date: January 27, 2005
By /s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer
Date: January 27, 2005