Nicholas-Applegate raises $900 million for convertible and junk fund

New York, May 5 - Nicholas-Applegate Capital Management raised $900 million for a new closed-end fund that will invest in convertibles and junk bonds.

The fund, called Nicholas-Applegate Convertible & Income Fund, will be managed by Nicholas-Applegate Capital Management, an affiliate of Pimco Advisors.

The fund aims to generate total return through a combination of capital appreciation and high current income. To do this it will invest in convertible and non-convertible securities. Primarily these will be junk rated, according to a prospectus filed with the Securities and Exchange Commission. At least 50% of total assets will normally be invested in convertibles.

Portfolio manager for the fund is Doug Forsyth, head of convertible and high yield management at Nicholas-Applegate

The initial offering has a greenshoe which could take the total size to $1.035 billion. In addition, the fund expects to use leverage through the issuance of auction-rate preferred shares, potentially increasing the total portfolio to $1.5 billion.

The fund trades on the New York Stock Exchange under the symbol "NCV."

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