AllianzGI Diversified Income & Convertible Fund (the “Fund”)
today announced that the underwriters of its initial public
offering of common shares, which was completed on May 27, 2015,
have partially exercised their over-allotment option to purchase an
additional 90,000 common shares of the Fund. The closing of the
exercise of the over-allotment option occurred today, July 8, 2015.
The gross proceeds of $2,250,000 from the partial exercise of the
over-allotment option brings the total amount raised in the Fund’s
initial public offering to $282,250,000 (before deduction of the
sales load and offering expenses). The Fund’s common shares are
listed on the New York Stock Exchange under the symbol “ACV.”
The Fund is a diversified, limited term closed-end fund. The
Fund's investment objective is to provide total return through a
combination of current income and capital appreciation, while
seeking to provide downside protection against capital loss. Under
normal market conditions, the Fund will seek to achieve its
investment objective by investing in a combination of convertible
securities, debt and other income-producing instruments and common
stocks and other equity securities. The Fund will normally invest
at least 80% of its net assets (plus any borrowings for investment
purposes) in a diversified portfolio of convertible securities,
income-producing equity securities and income-producing debt and
other instruments of varying maturities. It is expected that
substantially all of the Fund’s debt instruments and a substantial
portion of its convertible securities will consist of securities
rated below investment grade or unrated but determined by Allianz
Global Investors U.S. LLC (“AGI U.S.”), the Fund’s sub-adviser, to
be of comparable quality (sometimes referred to as “high yield
securities” or “junk bonds”). The Fund can also employ a strategy
of writing (selling) covered call options on the stocks held in the
equity portion of the portfolio (the “Option Strategy”). The Option
Strategy is designed to generate gains from option premiums in an
attempt to enhance amounts available for distributions payable to
the Fund’s shareholders. The Fund currently anticipates that it
will utilize leverage as part of its investment strategy.
The Fund includes a term limit provision, which provides that
the Fund will terminate on its 15th anniversary in 2030, unless the
term is extended by the Fund's Board of Trustees for up to one year
or shareholders elect to extend the term. The Fund also includes a
Repurchase Plan (the “Repurchase Plan”) with respect to the Fund’s
common shares for a defined period following the Fund’s initial
public offering in an attempt to provide additional liquidity in
the marketplace for the Fund’s common shares. There can be no
assurance that repurchases of the Fund’s common shares under the
Repurchase Plan will cause the common shares to trade at a price
equal to or in excess of net asset value (“NAV”) or prevent or
reduce any trading discount.
AGI U.S., the Fund’s sub-adviser, is an integrated investment
management organization that provides solutions across equity,
fixed income, multi-asset and alternative asset classes. The
hallmark of AGI U.S. is entrepreneurial, autonomous investment
teams supported by common infrastructure. With a focus on clients,
AGI U.S. strives for investment innovation, efficient execution and
quality service.
Allianz Global Investors Fund Management LLC (“AGIFM”) is the
Fund’s investment manager, responsible for managing the investment
activities of the Fund and the Fund’s business affairs and other
administrative matters. AGIFM is an indirect, wholly-owned
subsidiary of Allianz Asset Management of America L.P. and is a
member of Munich-based Allianz Group. AGI U.S., an AGIFM affiliate,
is the Fund’s sub-adviser and is responsible for managing the
Fund’s portfolio investments.
The lead managers of the underwriting syndicate were BofA
Merrill Lynch and Wells Fargo Securities.
The Fund’s daily New York Stock Exchange closing prices, NAV per
share, as well as other information, including updated portfolio
statistics and performance will be available at us.allianzgi.com/closedendfunds or by calling the
Fund’s shareholder servicing agent at (800) 254-5197.
Disclosures
The Fund is a newly organized, diversified, limited term
registered closed-end management investment company. Shares of
closed-end investment companies, such as the Fund, usually trade on
a national stock exchange, and these shares frequently trade at a
significant discount from their NAV, which may increase risk of
loss for investors.
Because of the risks associated with investing in high yield
securities and other risks associated with the Fund’s principal
investment strategies, including, without limitation, limited term
risk and risks associated with the Repurchase Plan, the Option
Strategy and the use of leverage, an investment in the Fund
involves a high degree of risk and should be considered
speculative. Investors should consider their investment goals, time
horizons and risk tolerance before investing in the Fund. An
investment in the Fund is not appropriate for all investors, and
the Fund is not intended to be a complete investment program.
Investors should consider the Fund’s investment objective, risks,
fees and expenses carefully before investing, which are disclosed
in the prospectus.
The prospectus, which contains this and other information about
the Fund, should be read carefully before investing. There can be
no assurance that the Fund will achieve its investment objective or
be able to structure its investment portfolio as anticipated.
This document is not an offer to sell securities and is not a
solicitation of an offer to buy securities, nor will there be any
sales of securities in any jurisdiction where the offer or sale is
not permitted. Past performance is no guarantee of future results.
An investment in the Fund involves risk, including loss of
principal.
Convertible securities generally offer lower interest or
dividend yields than non-convertible debt securities of similar
quality. The market values of convertible securities tend to
decline as interest rates increase and, conversely, to increase as
interest rates decline. Investments in debt securities typically
decline in value when interest rates rise. This risk is usually
greater for longer-term debt securities. The Fund may invest in
foreign securities which involve greater volatility and political,
economic and currency risks and differences in accounting methods.
These risks are greater for investments in emerging markets.
Investments in lower rated and unrated securities present a greater
risk of loss to principal and interest than higher rated
securities. Debt securities of below investment grade quality are
regarded as having predominantly speculative characteristics with
respect to capacity to pay interest and to repay principal, and are
commonly referred to as “high yield” securities or “junk
bonds.”
This material may include statements that constitute
“forward-looking statements” under the U.S. securities laws.
Forward-looking statements include, among other things,
projections, estimates and information about possible or future
results related to the Fund, market or regulatory developments. The
views expressed herein are for informational purposes only and are
not guarantees of future performance or economic results and
involve certain risks, uncertainties and assumptions that could
cause actual outcomes and results to differ materially from the
views expressed herein. Such risks and uncertainties include,
without limitation, the adverse effect from a decline in the
securities markets or a decline in the Fund’s 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 its operating strategy
and/or acquisition strategy, and unforeseen costs and other effects
related to legal proceedings or investigations of governmental and
self-regulatory organizations. The views expressed herein are
subject to change at any time based upon economic, market, or other
conditions and the Fund undertakes no obligation to update the
views expressed herein. While we have gathered this information
from sources believed to be reliable, the Fund cannot guarantee the
accuracy of the information provided. The views expressed herein do
not constitute a recommendation to buy, sell or hold any security.
The views expressed herein (including any forward-looking
statement) may not be relied upon as investment advice or as an
indication of the Fund’s trading intent. Information included
herein is not an indication of the Fund’s future portfolio
composition or the extent to which the Fund may utilize
leverage.
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version on businesswire.com: http://www.businesswire.com/news/home/20150708006448/en/
AllianzGI Diversified Income & Convertible
Fund800-254-5197
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