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.

AllianzGI Diversified Income & Convertible Fund800-254-5197

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