AllianzGI Convertible & Income Fund (NCV)
NYSE NYSE Primary Summary
NCV Chart
NCV: Appealing Discount But Weak Track Record To Peers
NCV trades at a historically wide discount, making the current valuation more attractive, but its long-term performance lags convertible CEF peers. The fund's high distribution yield appears unsustainable, with frequent past cuts and significant return of capital, signaling caution for income-focused investors. NAV erosion and a recent reverse split highlight challenges this fund has faced, and leverage remains high, increasing risk during market downturns.
NCV: High Yield And Fully Covered Distribution
The Virtus Convertible & Income Fund offers a high yield of 12.37%, but has struggled with negative real returns and distribution cuts over the past decade. The NCV closed-end fund invests primarily in convertible bonds, which have better inflation protection than traditional bonds, but its management has underperformed relative to indices. Recent performance has been volatile, with a slight gain of 1.46% over ten months, but distributions have helped offset share price declines.
NCV: 11% Yield, 9% Discount On Convertibles
The Virtus Convertible & Income Fund offers capital appreciation and high current income through a diversified portfolio of convertible securities and high-yield bonds. NCV has a high expense ratio of 3.41%, uses 35% leverage, and has seen a significant dividend decrease, with 2024 distributions being 100% Return of Capital. The fund's performance has lagged, especially in 2022, with a -34% price return, and it currently trades at a 9.45% discount to NAV.
AllianzGI Convertible & Income Fund Dividends
| NCV 2 days ago Announced | Monthly | $0.14 Per Share |
| NCV 1 month ago Paid | Monthly | $0.14 Per Share |
| NCV 2 months ago Paid | Monthly | $0.14 Per Share |
| NCV 3 months ago Paid | Monthly | $0.14 Per Share |
| NCV 4 months ago Paid | Monthly | $0.14 Per Share |
AllianzGI Convertible & Income Fund Earnings
| NCV 2 days ago Announced | Monthly | $0.14 Per Share |
| NCV 1 month ago Paid | Monthly | $0.14 Per Share |
| NCV 2 months ago Paid | Monthly | $0.14 Per Share |
| NCV 3 months ago Paid | Monthly | $0.14 Per Share |
| NCV 4 months ago Paid | Monthly | $0.14 Per Share |
AllianzGI Convertible & Income Fund (NCV) FAQ
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AllianzGI Convertible & Income Fund Profile
| NYSE Exchange | US Country |
Overview
The Virtus Convertible & Income Fund is a closed-ended fixed income mutual fund, initiated and overseen by Allianz Global Investors Fund Management LLC, with Allianz Global Investors U.S. LLC co-managing the fund. Specializing in the fixed income markets of the United States, this fund dedicates its investments principally to convertible securities as well as non-convertible high-yield bonds that are rated below investment grade. The investment portfolio of the fund spans a variety of maturities, targeting a weighted average maturity period ranging from five to ten years. Utilizing a bottom-up stock picking strategy based on fundamental analysis, the fund leverages in-house research facilitated by proprietary models to construct its portfolio. Initially launched as the AGIC Convertible & Income Fund on March 31, 2003, it has since been rebranded and operates within the United States.
Products and Services
Convertible Securities: The Virtus Convertible & Income Fund invests in convertible securities, which are financial instruments like bonds or preferred shares that can be converted into a predetermined number of the issuing company's common stock. This blend of bond and equity features allows the fund to potentially benefit from the upside of equity markets while seeking to provide downside protection through the fixed income component.
Non-Convertible High-Yield Bonds: Another key component of the fund's investment strategy is its focus on non-convertible high-yield bonds, also known as junk bonds. These are bonds rated below investment grade and typically offer higher yields to compensate for the increased risk of default. By including non-convertible high-yield bonds in its portfolio, the fund seeks to enhance overall yield and return potential amidst varying market conditions.
Research and Analysis: Fundamental to the fund's investment process is its emphasis on fundamental analysis and a bottom-up stock picking approach. Leveraging in-house research supported by proprietary models, the fund aims to identify undervalued securities that may offer potential for growth. This rigorous analysis and selection process is designed to construct a diversified portfolio aligned with the fund's strategic goals.
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