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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: 811-21338
Registrant Name: Nicholas-Applegate & Convertible Income Fund II
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: 6/30/06
Date of Reporting Period: 9/30/05
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 II SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2005 (UNAUDITED)
---------------------------------------------------------------------------------------------------------------------------------
Principal
Amount Credit Rating
(000) (Moody's/S&P) Value*
---------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS & NOTES-41.2%
---------------------------------------------------------------------------------------------------------------------------------
APPAREL-0.7%
Levi Strauss & Co.
$ 2,000 9.75%, 1/15/15 Caa2/B- $ 2,050,000
5,945 12.25%, 12/15/12 Caa2/B- 6,569,225
915 Phillips-Van Heusen Corp., 8.125%, 5/1/13 B1/BB 960,750
---------------------------
9,579,975
===========================
AUTO PARTS & EQUIPMENT-0.2%
2,815 Goodyear Tire & Rubber Co., 11.00%, 3/1/11, Ser. AI B3/NR 3,131,688
---------------------------
AUTOMOTIVE-0.7%
11,405 HLI Operating Co., Inc., 10.50%, 6/15/10 Caa3/B- 9,865,325
---------------------------
CHEMICALS-4.2%
4,988 Huntsman LLC, 11.625%, 10/15/10 Ba3/BB- 5,698,790
11,410 IMC Global, Inc., 11.25%, 6/1/11 Ba3/BB 12,551,000
Lyondell Chemical Co.,
4,435 9.625%, 5/1/07, Ser. A B1/BB- 4,656,750
4,315 10.875%, 5/1/09 B3/B 4,487,600
4,565 11.125%, 7/15/12 B1/BB- 5,089,975
5,680 PolyOne Corp., 10.625%, 5/15/10 B3/B+ 5,850,400
10,950 Resolution Performance Products LLC, 13.50%, 11/15/10 Caa2/B- 11,634,375
6,475 Rhodia S.A., 10.25%, 6/1/10 B3/CCC+ 6,879,688
---------------------------
56,848,578
===========================
COMMERCIAL SERVICES-1.2%
11,190 Integrated Electrical Services, Inc., 9.375%, 2/1/09, Ser. C Caa3/CCC 9,175,800
6,810 Vertrue, Inc., 9.25%, 4/1/14 B2/B 6,810,000
---------------------------
15,985,800
===========================
ELECTRIC-2.9%
12,000 AES Corp., 9.50%, 6/1/09 B1/B- 13,080,000
10,250 Mission Energy Holdings Co., 13.50%, 7/15/08 B2/CCC+ 12,069,375
9,820 PSEG Energy Holdings LLC, 10.00%, 10/1/09 Ba3/BB- 10,900,200
3,050 Reliant Resources, Inc., 9.50%, 7/15/13 B1/B+ 3,370,250
---------------------------
39,419,825
===========================
ELECTRONICS-2.1%
6,295 Imax Corp., 9.625, 12/1/10 B3/B- 6,767,125
9,425 Sanmina-SCI Corp., 10.375%, 1/15/10 Ba2/BB- 10,391,062
10,335 Stoneridge, Inc., 11.50%, 5/1/12 B1/B+ 10,955,100
---------------------------
28,113,287
===========================
ENVIRONMENTAL CONTROL-0.8%
9,060 Imco Recycling, Inc., 10.375%, 10/15/10 B2/B 9,988,650
---------------------------
FINANCIAL SERVICES-1.3%
9,400 Alamosa Delaware, Inc., 11.00%, 7/31/10 Caa1/CCC+ 10,598,500
5,065 AMR Holdings Co., Inc., 10.00%, 2/15/15 (a) Caa1/B- 5,470,200
1,000 MedCath Holdings Corp., 9.875%, 7/15/12 Caa1/B- 1,090,000
---------------------------
17,158,700
===========================
FOOD SERVICES-0.8%
9,815 Pilgrim's Pride Corp., 9.625%, 9/15/11 Ba2/BB- 10,551,125
---------------------------
NICHOLAS-APPLEGATE CONVERTIBLE & INCOME FUND II SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2005 (UNAUDITED)
---------------------------------------------------------------------------------------------------------------------------------
Principal
Amount Credit Rating
(000) (Moody's/S&P) Value*
---------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE-0.3%
$ 3,550 Hanger Orthopedic Group, Inc., 11.25%, 6/15/09 NR/CCC+ $ 3,603,250
---------------------------
HOME BUILDERS-1.7%
11,500 Ryland Group, Inc., 9.125%, 6/15/11 Ba2/BB+ 12,269,718
9,800 William Lyon Homes, Inc., 10.75%, 4/1/13 B2/B 10,559,500
---------------------------
22,829,218
===========================
HOUSEHOLD PRODUCTS-1.5%
8,750 Central Garden & Pet Co., 9.125%, 2/1/13 B1/B+ 9,362,500
10,635 Jarden Corp., 9.75%, 5/1/12 B3/B- 11,326,275
---------------------------
20,688,775
===========================
LEISURE-0.5%
6,020 Equinox Holdings, Inc., 9.00%, 12/15/09 B3/B- 6,178,025
---------------------------
LODGING-0.9%
11,080 Mandalay Resort Group, Inc., 10.25%, 8/1/07, Ser. B Ba3/B+ 11,911,000
---------------------------
MACHINERY-1.0%
12,480 Case New Holland, Inc., 9.25%, 8/1/11 Ba3/BB- 13,197,600
---------------------------
METALS & MINING-2.7%
9,835 Freeport-McMoRan Copper & Gold, Inc., 10.125%, 2/1/10 B1/B+ 10,867,675
6,490 AK Steel Corp., 7.875%, 2/15/09 B1/B+ 6,295,300
5,710 Oregon Steel Mills, Inc., 10.00%, 7/15/09 Ba3/B+ 6,152,525
11,580 United States Steel LLC, 10.75%, 8/1/08 Ba2/BB 13,027,500
---------------------------
36,343,000
===========================
MISCELLANEOUS-2.0%
27,830 Dow Jones CDX High Yield, 10.50%, 12/29/09 (a) (b) NR/NR 27,325,581
---------------------------
MULTI-MEDIA-3.4%
9,547 CCH I LLC, 11.00%, 10/1/15 Ser. AI Caa3/CCC- 9,308,282
2,285 CSC Holdings Inc., 10.50%, 5/15/16 B2/B+ 2,470,656
1,690 Echostar DBS Corp., 9.125%, 1/15/09 Ba3/BB- 1,778,725
2,700 Lodgenet Entertainment Corp., 9.50%, 6/15/13 B3/B- 2,956,500
7,860 Mediacom Broadband LLC, 11.00%, 7/15/13 B2/B 8,469,150
5,735 Salem Communications Holding Corp., 9.00%, 7/1/11, Ser. B B2/B- 6,114,944
6,860 Sirius Satellite Radio, Inc., 9.625%, 8/1/13 (a) Caa1/CCC 6,585,600
7,318 XM Satellite Radio, Inc., 12.00%, 6/15/10 Caa1/CCC+ 8,342,520
---------------------------
46,026,377
===========================
OFFICE/BUSINESS EQUIPMENT-0.5%
5,935 Xerox Corp., 9.75%, 1/15/09 Ba2/BB- 6,647,200
---------------------------
OFFICE FURNISHINGS-1.1%
Interface, Inc.,
4,625 9.50%, 2/1/14 Caa3/CCC 4,648,125
5,625 10.375%, 2/1/10 Caa1/B- 6,075,000
3,199 Tempur-Pedic, Inc., 10.25%, 8/15/10 B2/B 3,486,910
---------------------------
14,210,035
===========================
OIL & GAS-1.3%
10,800 Petroleum Geo-Services ASA, 10.00%, 11/5/10 Ba3/B+ 12,096,000
5,000 Seitel, Inc., 11.75%, 7/15/11 B3/NR 5,550,000
---------------------------
17,646,000
===========================
NICHOLAS-APPLEGATE CONVERTIBLE & INCOME FUND II SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2005 (UNAUDITED)
---------------------------------------------------------------------------------------------------------------------------------
Principal
Amount Credit Rating
(000) (Moody's/S&P) Value*
---------------------------------------------------------------------------------------------------------------------------------
PAPER PRODUCTS-1.0%
$ 4,013 Buckeye Technologies, Inc., 9.25%, 9/15/08 Caa1/B $ 4,013,000
8,965 Georgia-Pacific Corp., 9.375%, 2/1/13 Ba1/BB+ 9,995,975
---------------------------
14,008,975
===========================
PHARMACEUTICALS-0.6%
9,310 Leiner Health Products, Inc., 11.00%, 6/1/12 Caa1/CCC+ 7,960,050
---------------------------
PIPELINES-1.3%
4,025 Dynegy Holdings, Inc., 10.125%, 7/15/13 (a) B3/B- 4,487,875
12,240 Sonat, Inc., 7.625%, 7/15/11 Caa1/B- 12,423,600
---------------------------
16,911,475
===========================
PRINTING/PUBLISHING-0.8%
10,000 R.H. Donnelley Financial Corp., 10.875%, 12/15/12 B2/B+ 11,225,000
---------------------------
REAL ESTATE-0.2%
2,285 Host Marriot L.P., 9.50%, 1/15/07 Ser. I REIT Ba3/B+ 2,390,681
---------------------------
RETAIL-1.5%
5,500 GSC Holdings Corp., 8.00%, 10/1/12 (a) Ba3/B+ 5,472,500
3,345 Mothers Work, Inc., 11.25%, 8/1/10 Caa1/B- 3,177,750
2,745 Neiman-Marcus Group, Inc., 10.375%, 10/15/15 (a) B3/B- 2,731,275
4,000 School Specialty, Inc., 10.00%, 10/1/13 (a) B3/CCC+ 4,010,000
4,315 United Auto Group, Inc., 9.625%, 3/15/12 B3/B 4,487,600
---------------------------
19,879,125
===========================
SEMI-CONDUCTORS-0.4%
6,340 Amkor Technology, Inc., 10.50%, 5/1/09 Caa3/CCC 5,389,000
---------------------------
TELECOMMUNICATIONS-3.6%
8,570 Dobson Communications Corp., 10.875%, 7/1/10 NR/CCC 9,052,063
5,990 Hawaiian Telcom Communications, Inc., 12.50%, 5/1/15 (a) Caa1/B- 6,049,900
11,760 Millicom International Cellular S.A., 10.00%, 12/1/13 B3/B- 12,142,200
1,525 Primus Telecommunications Group, Inc., 12.75%, 10/15/09 Caa3/CCC- 808,250
10,040 Qwest Services Corp., 14.00%, 12/15/14 Caa1/B 12,173,500
7,510 Time Warner Telecom, Inc., 10.125%, 2/1/11 B3/CCC+ 7,735,300
---------------------------
47,961,213
===========================
Total Corporate Bonds & Notes (cost-$555,911,138) 552,974,533
===========================
---------------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS & NOTES-31.6%
---------------------------------------------------------------------------------------------------------------------------------
AEROSPACE-0.1%
1,000 GenCorp, Inc., 4.00%, 1/16/24 Caa2/B 1,323,750
---------------------------
AIRLINES-1.0%
16,300 Continental Airlines, Inc., 4.50%, 2/1/07 Caa2/CCC+ 13,366,000
---------------------------
AUTO PARTS & EQUIPMENT-1.3%
11,700 Goodyear Tire & Rubber Co., 4.00%, 6/15/34 (a) B3/B- 16,935,750
---------------------------
AUTOMOTIVE-1.1%
15,335 Sonic Automotive, Inc., 5.25%, 5/7/09 B3/B 15,085,806
---------------------------
NICHOLAS-APPLEGATE CONVERTIBLE & INCOME FUND II SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2005 (UNAUDITED)
---------------------------------------------------------------------------------------------------------------------------------
Principal
Amount Credit Rating
(000) (Moody's/S&P) Value*
---------------------------------------------------------------------------------------------------------------------------------
CHEMICALS-1.0%
$ 5,950 Millennium Chemicals, Inc., 4.00%, 11/15/23 B1/BB- $13,023,063
---------------------------
COMMERCIAL SERVICES-2.0%
14,785 Quebecor World USA, Inc., 6.00%, 10/1/07 Ba3/BB- 14,840,444
11,000 Vertrue, Inc., 5.50%, 10/1/10 NR/B- 12,086,250
---------------------------
26,926,694
===========================
COMPUTERS-1.1%
15,400 Maxtor Corp., 6.80%, 4/30/10 B2/NR 15,284,500
---------------------------
CONSUMER PRODUCTS-1.0%
7,050 American Greetings Corp., 7.00%, 7/15/06 Ba2/BB+ 14,073,562
---------------------------
DIVERSIFIED FINANCIAL SERVICES-1.2%
15,758 E*Trade Financial Corp., 6.00%, 2/1/07 NR/B- 16,014,067
---------------------------
ELECTRIC-1.2%
5,425 PG&E Corp., 9.50%, 6/30/10 NR/NR 16,037,656
---------------------------
ELECTRONICS-0.8%
8,150 Artesyn Technologies, Inc., 5.50%, 8/15/10 NR/NR 10,747,812
---------------------------
METALS & MINING-1.4%
11,200 Freeport-McMoRan Copper & Gold, Inc., 7.00%, 2/11/11 NR/B+ 18,648,000
---------------------------
MULTI-MEDIA-1.1%
14,250 EchoStar Communications Corp., 5.75%, 5/15/08 B2/B 14,178,750
---------------------------
OIL & GAS-1.9%
12,500 Devon Energy Corp., 4.95%, 8/15/08 Baa2/BBB 15,437,500
3,685 St. Mary Land & Exploration Corp., 6.25%, 3/15/22 (c) NR/NR 10,580,556
---------------------------
26,018,056
===========================
PHARMACEUTICALS-2.0%
8,490 Ligand Pharmaceuticals, Inc., 6.00%, 11/16/07 NR/NR 12,119,475
15,250 Sepracor, Inc., 5.00%, 2/15/07 NR/CCC+ 15,307,188
---------------------------
27,426,663
===========================
PRINTING/PUBLISHING-0.8%
10,125 Bowne & Co., Inc., 5.00%, 10/1/33 B2/B- 10,916,775
---------------------------
REAL ESTATE-0.9%
4,000 Affordable Residential Communities, 7.50%, 8/15/25 REIT (a) NR/NR 4,020,000
6,700 Capital Automotive, 6.00%, 5/15/24 REIT NR/NR 7,328,125
---------------------------
11,348,125
===========================
RETAIL-0.6%
5,200 Guitar Center, Inc., 4.00%, 7/15/13 B1/BB- 8,521,500
===========================
SEMI-CONDUCTORS-2.4%
14,100 Advanced Micro Devices, Inc., 4.75%, 2/1/22 (c) B3/B- 16,056,375
Amkor Technology, Inc.
14,300 5.00%, 3/15/07 Caa3/CCC 12,673,375
3,000 5.75%, 6/1/06 Caa3/CCC 2,868,750
---------------------------
31,598,500
===========================
NICHOLAS-APPLEGATE CONVERTIBLE & INCOME FUND II SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2005 (UNAUDITED)
---------------------------------------------------------------------------------------------------------------------------------
Principal
Amount Credit Rating
(000) (Moody's/S&P) Value*
---------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-6.3%
$16,250 American Tower Corp., 5.00%, 2/15/10 B1/BB- $ 16,229,688
13,600 CenturyTel, Inc., 4.75%, 8/1/32 Baa2/BBB+ 14,246,000
9,500 Crown Castle International, Inc., 4.00%, 7/15/10 NR/NR 22,420,000
2,000 Lucent Technologies, Inc., 8.00%, 8/1/31 B3/CCC+ 2,060,000
16,000 Nextel Communications, Inc., 5.25%, 1/15/10 Baa2/A- 16,200,000
1,396 NII Holdings, Inc., 3.50%, 9/15/33 NR/NR 4,495,120
9,940 Nortel Networks Corp., 4.25%, 9/1/08 B3/B- 9,405,725
---------------------------
85,056,533
===========================
TRANSPORTATION-0.9%
8,100 Yellow Roadway Corp., 5.00%, 8/8/23 Ba1/BBB- 11,350,125
---------------------------
TRUCKING/LEASING-1.5%
15,900 GATX Corp., 7.50%, 2/1/07 Baa3/BBB- 19,875,000
---------------------------
Total Convertible Bonds & Notes (cost-$406,735,295) 423,756,687
===========================
---------------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK-23.4%
---------------------------------------------------------------------------------------------------------------------------------
Shares
-------------------
AUTOMOTIVE-2.1%
249,200 Ford Motor Co., Capital Trust II, 6.50%, 1/15/32 Ba2/B+ 9,083,340
General Motors Corp.
315,000 5.25%, 3/6/32, Ser.B Ba2/BB- 5,443,200
691,435 6.25%, 7/15/33, Ser.C Ba2/BB- 13,655,841
---------------------------
28,182,381
===========================
BANKING-1.1%
275,000 Washington Mutual, Inc., 5.375%, 5/3/41 Baa1/BBB 14,330,250
---------------------------
COMMERCIAL SERVICES-1.4%
468,500 United Rentals, Inc., 6.50%, 8/1/28 Caa2/B 18,974,250
---------------------------
ELECTRIC-3.5%
324,400 AES Trust III, 6.75%, 10/15/29 B3/CCC+ 15,473,880
226,050 FPL Group, Inc., 8.00%, 2/16/06 NR/A- 16,083,458
191,500 Public Service Enterprise Group, Inc., 10.25%, 11/16/05 Baa3/BBB- 15,511,500
---------------------------
47,068,838
===========================
FINANCIAL SERVICES-1.4%
100,000 Citigroup Funding, Inc., 9/27/08, Ser. GNW (c) Aa1/AA- 3,155,400
665,000 PMI Group, Inc., 5.875, 11/15/06 A1/A 16,478,700
---------------------------
19,634,100
===========================
FOOD-1.3%
680,600 Albertson's, Inc., 7.25%, 5/16/07 Baa3/BBB- 16,946,940
---------------------------
HOLDING COMPANIES-1.4%
162,500 Williams Holdings of Delaware, Inc., 5.50%, 6/1/33 NR/B- 18,910,937
---------------------------
INSURANCE-3.6%
477,500 Genworth Financial, Inc., 6.00%, 5/16/07 A2/A 17,142,250
121,500 Metlife, Inc., 6.375%, 8/15/08, Ser. B NR/BBB+ 3,410,505
506,600 Platinum Underwriters Holdings Ltd., 7.00%, 11/16/05 NR/BBB 14,248,125
570,000 XL Capital Ltd., 6.50%, 5/15/07 A2/A 13,013,100
---------------------------
47,813,980
===========================
NICHOLAS-APPLEGATE CONVERTIBLE & INCOME FUND II SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2005 (UNAUDITED)
---------------------------------------------------------------------------------------------------------------------------------
Credit Rating
Shares (Moody's/S&P) Value*
---------------------------------------------------------------------------------------------------------------------------------
METALS & MINING-0.4%
42,650 U.S. Steel Corp., 7.00%, 6/15/06, Ser. B NR/B $ 5,811,063
---------------------------
OFFICE/BUSINESS EQUIPMENT-1.1%
123,000 Xerox Corp., 6.25%, 7/1/06 B1/B- 14,406,990
---------------------------
OIL & GAS-4.3%
170,000 Amerada Hess Corp., 7.00%, 12/01/06 Ba3/BB 19,907,000
89,900 Chesapeake Energy Corp., 5.00%, 12/31/49 B2/B 21,283,825
380,000 ONEOK, Inc., 8.50%, 2/16/06 Baa2/BBB+ 15,762,400
---------------------------
56,953,225
===========================
PHARMACEUTICALS-1.6%
402,400 Schering-Plough Corp., 6.00%, 9/14/07 Baa3/BBB 21,822,152
---------------------------
TELECOMMUNICATIONS-0.2%
45,000 Crown Castle International Corp., 6.25%, 8/15/12 NR/NR 2,340,000
---------------------------
Total Convertible Preferred Stock (cost-$280,645,715) 313,195,106
===========================
---------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES-2.4%
---------------------------------------------------------------------------------------------------------------------------------
Principal
Amount
(000)
-------------------
United States Treasury Notes,
$13,725 10.375%, 11/15/12 15,435,272
13,725 12.00%, 8/15/13 16,605,644
---------------------------
Total U.S. Government Securities (cost-$32,250,304) 32,040,916
===========================
---------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS-1.4%
---------------------------------------------------------------------------------------------------------------------------------
Corporate Bonds & Notes-0.9%
Retail-0.9%
11,460 Rite Aid Corp., 12.50%, 9/15/06
(cost-$12,257,086) 12,176,250
---------------------------
Time Deposit-0.5%
7,219 Wachovia Bank-Grand Cayman, 3.31%, due 10/3/05
(cost-$7,219,181) 7,219,181
---------------------------
Total Short-Term Investments (cost-$19,476,267) 19,395,431
===========================
TOTAL INVESTMENTS (cost-$1,295,018,719)-100% $1,341,362,673
===========================
---------------------------------------------------------------------------------------------------------------------------------
Valuation of Investments
* Portfolio securities and other financial instruments for which market
quotations are readily available are stated at market value. Portfolio
securities for which market quotations are not readily available or if a
development/event occurs that may significantly impact the value of a
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 or for listed securities in
which there were no sales. Prices obtained from independent pricing
services use information provided by market makers or estimates of market
values 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 term to 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 buyers.
Unless otherwise indicated, these securites are not considered to be
illiquid.
(b) Credit-linked trust certificate.
(c) Variable rate security. Interest rate disclosed reflects the rate in effect
on September 30, 2005.
Glossary:
NR - Not Rated
REIT - Real Estate Investment Trust
OTHER INVESTMENTS:
-----------------
INTEREST RATE CAP AGREEMENTS OUTSTANDING AT SEPTEMBER 30, 2005:
Unrealized
Swap Termination Payment received Appreciation
Counterparty Notional Amount Date Premium by Fund (Depreciation)
---------------------------------------------------------------------------------------------------------
UBS AG $ 505,000,000 1/15/06 $ 4,936,375 1 month LIBOR-BBA $(1,024,922)
over 2% strike price
UBS AG 505,000,000 1/15/08 14,468,250 3 month LIBOR-BBA 1,058,750
over 3% strike price -----------
$ 33,828
-----------
------------------
LIBOR-London Interbank Offered Rate
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 II
By /s/ Brian S. Shlissel
President & Chief Executive Officer
Date: November 18, 2005
By /s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer
Date: November 18, 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: November 18, 2005
By /s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer
Date: November 18, 2005