• For the 12 months ended January 31, 2008, the NFJ Dividend, Interest & Premium Strategy Fund returned 1.09% on net asset value (NAV) and -1.65% based on market price.

• Within the equity portion of the portfolio, exposure to the energy, industrials and consumer staples sectors contributed positively to returns. Positions in Petrobras, Anadarko Petroleum and Occidental Petroleum improved in the period along with rising energy prices. Petrobras, Brazil’s state-run oil firm, benefited from new discovered reserves and record oil output. Anadarko Petroleum also benefited from new offshore discoveries’ and shares of Occidental Petroleum advanced with higher oil prices. A position in specialty printer Deluxe Corp. contributed to positive returns in the industrials sector. In the consumer staples sector, exposure to tobacco company Altria added to returns with the resolution of litigation and the company’s acquisition of greater share in the U.S. cigar market.

• Detracting from performance within the equity portion during the reporting period were positions in the financials, telecommunications and consumer discretionary sectors. Shares of Washington Mutual and Regions Financial weakened among financials as both companies were hit hard by the subprime mortgage crisis. Media company Gannett lost ground in the consumer discretionary sector as the newspaper publisher, broadcaster and outdoor advertising company saw ad dollars turn scarce with a weakening housing market and heightened competition from online providers.

• During the period, the Fund’s equity index option strategy was able to achieve its objectives with respect to premiums collected and correlation to the underlying portfolio. High levels of volatility, especially towards the end of the period, allowed us to widen our average strike distance while continuing to meet our premium objectives.

• The convertible portion of the portfolio followed the broad equity market lower during the period, as 2007 closed with no significant new catalysts to drive the market higher. This portion of the portfolio benefited from security selection in many industries during the period. Health care companies rallied in response to better-than-expected corporate profits and positive outlooks. Consumer staple companies benefited from record commodity prices as well as an investor rotation into more defensive industries. Select industries detracted from performance in the convertible portion of the portfolio. Despite positive performance for the year, some technology issuers pulled back during the period on fears of slowing earnings growth. Automotive and retail companies also declined.

Market Price/NAV Performance:
Commencement of Operations (2/28/05) to 1/31/08

(1) Past performance is no guarantee of future results. Total return is calculated by subtracting the value of an investment in the Fund at the beginning of each specified period from the value at the end of the period and dividing the remainder by the value of the investment at the begining of the period and expressing the result as a percentage. The calculation assumes that all of the Fund’s income dividends and capital gain distributions have been reinvested at prices obtained under the Fund’s dividend reinvestment plan. Total return does not reflect broker commissions or sales charges. Total return for a period of less than one year is not annualized. Total return for a period more than one year represents the average annual total return.

Returns are calculated by determining the percentage change in net asset value or market share price (as applicable) with all distributions reinvested. The Fund’s performance at market price will differ from its results at NAV. Although market price returns typically reflect investment results over time, during shorter periods’ returns at market price can also be influenced by factors such as changing views about the Fund, market conditions, supply and demand for the Fund’s shares, or changes in Fund distributions.

An investment in the Fund involves risk, including the loss of principal. Total return, market price, market yield and net asset value will fluctuate with changes in market conditions. This data is provided for information only and is not intended for trading purposes. Closed-end funds, unlike open-end funds, are not continuously offered. There is typically a one-time public offering and once issued, shares of closed-end funds are sold in the open market through a stock exchange. Net asset value is equal to total assets attributable to common shareholders less total liabilities divided by the number of common shares outstanding. Holdings are subject to change daily.

(2) Market Price Yield is determined by dividing the annualized current quarterly per share dividend to common shareholders by the market price per common share at January 31, 2008.

Nicholas-Applegate Equity & Convertible Income Fund Fund Insights/Performance & Statistics

January 31, 2008 (unaudited)

• From the Fund’s inception on February 27, 2007 through January 31, 2008, the Nicholas-Applegate Equity & Convertible Income Fund returned 5.13% on net asset value (NAV) and -5.66% on market price.

• The equity markets finished the fourth quarter down, but ended 2007 in positive territory.

• Within the equity portion of the portfolio, the Fund benefited by the markets’ shift to mega-cap names, those with over $50 billion in capitalization. Several issuers contributed to the positive portfolio performance during the period. Health care companies rallied in response to better-than-expected corporate profits and positive outlooks. Consumer staple companies and some industrials benefited from record commodity prices as well as an investor rotation into more defensive industries.

• Detracting from the Fund’s performance within the equity portion were select names in the industrial and retail industries.

• The convertible portion followed the broad equity market lower during the period, as there were no significant new catalysts to drive the market higher.

• Within the convertible portion of the portfolio, the Fund was helped by many industries. Health care companies rallied in response to better-than-expected corporate profits and positive outlooks. Consumer staple companies benefited from record commodity prices as well as an investor rotation into more defensive industries.

• Select industries hurt the convertible portion of the Fund. Despite positive performance for the year, select technology issuers pulled back in the period on fears of slowing earnings growth. Automotive companies moved lower on concerns that weaker-than-expected consumer spending would cause auto sales to fall below expectations in 2008. Retail companies continued their move lower as the challenging economic backdrop weighed on consumer spending.

Total Return(1) :		Market Price			Net Asset Value (“NAV”	)
Commencement of Operations (2/27/07) to 1/31/08		(5.66	)%		4.93	%

Common Share Market Price/NAV Performance:
Commencement of Operations (2/27/07) to 1/31/08

Market Price/NAV:
Market Price				$22.02
NAV				$23.44
Discount to NAV				(6.06	)%
Market Price Yield(2)				10.22	%

Investment Allocation (as a percentage of total investments before call options written)

(1) Past performance is no guarantee of future results. Total return is calculated by subtracting the value of an investment in the Fund at the beginning of each specified period from the value at the end of the period and dividing the remainder by the value of the investment at the begining of the period and expressing the result as a percentage. The calculation assumes that all of the Fund’s income dividends and capital gain distributions have been reinvested at prices obtained under the Fund’s dividend reinvestment plan. Total return does not reflect broker commissions or sales charges. Total return for a period of less than one year is not annualized.

Returns are calculated by determining the percentage change in net asset value or market share price (as applicable) with all distributions reinvested. The Fund’s performance at market price will differ from its results at NAV. Although market price returns typically reflect investment results over time, during shorter periods’ returns at market price can also be influenced by factors such as changing views about the Fund, market conditions, supply and demand for the Fund’s shares, or changes in Fund distributions.

An investment in the Fund involves risk, including the loss of principal. Total return, market price, market yield and net asset value will fluctuate with changes in market conditions. This data is provided for information only and is not intended for trading purposes. Closed-end funds, unlike open-end funds, are not continuously offered. There is typically a one-time public offering and once issued, shares of closed-end funds are sold in the open market through a stock exchange. Net asset value is equal to total assets attributable to common shareholders less total liabilities divided by the number of common shares outstanding. Holdings are subject to change daily.

(2) Market Price Yield is determined by dividing the annualized current quarterly per share dividend to common shareholders by the market price per common share at January 31, 2008.

	NFJ Dividend, Interest & Premium Strategy Fund
| 1.31.08 |	Nicholas-Applegate Equity & Convertible Income Fund Annual Report	3

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NFJ Dividend, Interest & Premium Strategy Fund Schedule of Investments

January 31, 2008

Shares
(000)					Value
COMMON STOCK—72.7%
		Banking—4.5%
700		Bank of America Corp. (a)		$	31,045,000
600		KeyCorp (a)			15,690,000
1,000		Regions Financial Corp. (a)			25,240,000
750		Wachovia Corp. (a)			29,197,500
					101,172,500
		Beverages—2.6%
700		Anheuser-Busch Cos., Inc. (a)			32,564,000
450		Coca-Cola Co.			26,626,500
					59,190,500
		Chemicals—3.3%
1,900		Dow Chemical Co. (a)			73,454,000
		Commercial Services—0.6%
400		R.R. Donnelley & Sons Co. (a)			13,956,000
		Commercial Services & Supplies—0.7%
511		Waste Management, Inc.			16,576,840
		Computers & Peripherals—2.0%
2,246		Seagate Technology, Inc. (a)			45,516,285
		Diversified Financial Services—0.8%
400		JP Morgan Chase & Co. (a)			19,020,000
		Diversified Telecommunication Services—6.7%
1,122		AT&T, Inc. (a)			43,203,158
700		Verizon Communications, Inc. (a)			27,188,000
7,000		Windstream Corp. (a)			81,270,000
					151,661,158
		Electronic Equipment & Instruments—1.2%
236		Diamond Offshore Drilling, Inc.			26,606,308
		Energy Equipment & Instruments—1.4%
944		Halliburton Co.			31,302,529
		Food—1.3%
1,000		Kraft Foods, Inc.—Class A			29,260,000
		Household Durables—3.5%
500		Black & Decker Corp.			36,270,000
500		Whirlpool Corp.			42,555,000
					78,825,000
		Household Products—1.5%
500		Kimberly-Clark Corp.			32,825,000
		Insurance—4.1%
700		Allstate Corp. (a)			34,489,000
103		Assurant, Inc.			6,685,597
500		Lincoln National Corp. (a)			27,180,000
500		Travelers Cos., Inc.			24,050,000
					92,404,597
		Leisure Equipment & Products—1.9%
2,000		Mattel, Inc. (a)			42,020,000

	NFJ Dividend, Interest & Premium Strategy Fund
4	Nicholas-Applegate Equity & Convertible Income Fund Annual Report | 1.31.08 |

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NFJ Dividend, Interest & Premium Strategy Fund Schedule of Investments

January 31, 2008

Shares
(000)							Value
		Machinery-Construction & Mining—2.0%
650		Caterpillar, Inc. (a)				$	46,241,000
		Media—3.0%
1,200		CBS Corp.—Class B					30,228,000
1,000		Gannett Co. (a)					37,000,000
							67,228,000
		Metals & Mining—1.8%
1,200		Alcoa, Inc.					39,720,000
		Multi-Utilities—2.1%
683		Ameren Corp.					30,587,306
300		Sempra Energy					16,770,000
							47,357,306
		Oil & Gas—10.1%
600		Chevron Corp. (a)					50,700,000
400		ConocoPhillips					32,128,000
600		Marathon Oil Corp.					28,110,000
600		Occidental Petroleum Corp.					40,722,000
550		Royal Dutch Shell PLC, ADR					39,275,500
500		Total SA, ADR					36,390,000
							227,325,500
		Pharmaceuticals—8.5%
1,700		GlaxoSmithKline PLC, ADR (a)					80,546,000
3,600		Pfizer, Inc. (a)					84,204,000
700		Wyeth (a)					27,860,000
							192,610,000
		Road & Rail—1.7%
700		Norfolk Southern Corp. (a)					38,073,000
		Specialty Retail—2.8%
2,072		Home Depot, Inc.					63,548,240
		Semi-conductors—1.1%
1,171		Intel Corp.					24,816,720
		Tobacco—2.6%
400		Altria Group, Inc. (a)					30,328,000
450		Reynolds American, Inc. (a)					28,498,500
							58,826,500
		Textiles, Apparel & Luxury Goods—0.9%
250		VF Corp.					19,342,500
		Total Common Stock (cost-$1,738,189,761)					1,638,879,483
CONVERTIBLE PREFERRED STOCK—16.5%
				Credit Rating
				(Moody’s/S&P)*
		Agriculture—0.8%
		Bunge Ltd.,
97		4.875%, 12/31/49		Ba1/BB			13,970,612
4		5.125%, 12/01/10		NR/BB			4,380,000
							18,350,612

	NFJ Dividend, Interest & Premium Strategy Fund
| 1.31.08 |	Nicholas-Applegate Equity & Convertible Income Fund Annual Report	5

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NFJ Dividend, Interest & Premium Strategy Fund Schedule of Investments

January 31, 2008

Shares				Credit Rating
(000)				(Moody’s/S&P)*			Value
		Automotive—0.5%
575		General Motors Corp., 6.25%, 7/15/33, Ser. C		Caa1/B-		$	12,129,335
		Banking—1.0%
6		Bank of America Corp., 7.25%, 12/31/49		Aa3/A+			6,882,037
129		Wells Fargo & Co., 8.00%, 6/1/08, Ser. AAPL (Apple, Inc.) (f)		Aa1/AA+			15,917,865
							22,799,902
		Commercial Services—0.3%
161		United Rentals, Inc., 6.50%, 8/1/28		B3/B-			6,446,400
		Diversified Financial Services—4.9%
131		Citigroup Funding, Inc., 4.583%, 9/27/08, Ser. GNW
		(Genworth Financial, Inc.) (d) (f)		Aa3/AA-			3,114,348
49		Citigroup, Inc., 6.50%, 12/31/49 Ser. T		A2/A			2,667,367
866		Eksportfinans A/S, 13.00%, 11/1/08, Ser. TWX
		(Time Warner, Inc.) (f)		Aaa/A+			13,784,424
		Goldman Sachs Group, Inc.,
597		9.75%, 12/19/08, Ser. CSCO (Cisco Systems, Inc.) (f)		Aa3/NR			15,410,667
356		20.00%, 3/6/08, Ser. DISH (EchoStar Communications Corp.) (f)		Aa3/NR			10,119,857
86		Lazard Ltd., 6.625%, 5/15/08		Ba1/NR			2,868,419
		Lehman Brothers Holdings, Inc.,
630		6.00%, 10/12/10, Ser. GIS (General Mills, Inc.) (f)		A1/A+			14,986,156
178		8.50%, 8/25/08, Ser. UTX (United Technologies Corp.) (f)		A1/A+			12,417,792
348		20.00%, 2/24/08, Ser. HPQ (Hewlett-Packard Co.) (f)		A1/A+			13,179,181
		Morgan Stanley,
26		20.00%, 3/8/08, Ser. GOOG (Google, Inc.) (f)		Aa3/NR			11,304,758
391		20.00%, 3/24/08, Ser. DIS (The Walt Disney Co.) (f)		Aa3/NR			9,818,850
							109,671,819
		Electric—1.9%
244		AES Trust III, 6.75%, 10/15/29		B3/B-			11,228,600
230		Entergy Corp., 7.625%, 2/17/09		NR/BBB			14,720,000
48		NRG Energy, Inc., 5.75%, 3/16/09		B2/CCC+			16,320,562
							42,269,162
		Hand/Machine Tools—0.4%
10		Stanley Works, 6.975%, 5/17/12 (d)		A2/A			9,449,700
		Insurance—1.1%
405		Metlife, Inc., 6.375%, 8/15/08		NR/BBB+			11,788,911
173		Platinum Underwriters Holdings Ltd., 6.00%, 2/15/09, Ser. A		NR/BB+			5,254,875
504		XL Capital Ltd., 7.00%, 2/15/09		Baa1/A-			8,630,847
							25,674,633
		Investment Companies—0.6%
		Vale Capital Ltd.,
231		5.50%, 6/15/10, Ser. RIO-P (CompanhiaVale ADS) (f)		NR/NR			10,696,875
		5.50%, 6/15/10, Ser. RIO (Companhia Vale do Rio Doce) (f)		NR/NR			3,353,906
							14,050,781
		Metals & Mining—0.7%
121		Freeport-McMoRan Copper & Gold, Inc., 6.75%, 5/1/10		NR/B+			16,108,640
		Oil & Gas—0.6%
113		Chesapeake Energy Corp., 5.00%, 12/31/49		NR/B			12,715,231

	NFJ Dividend, Interest & Premium Strategy Fund
6	Nicholas-Applegate Equity & Convertible Income Fund Annual Report | 1.31.08 |

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NFJ Dividend, Interest & Premium Strategy Fund Schedule of Investments

January 31, 2008

Shares				Credit Rating
(000)				(Moody’s/S&P)*			Value
		Packaging & Containers—0.2%
111		Owens-Illinois, Inc., 4.75%, 12/31/49		Caa1/B-		$	5,616,105
		Pharmaceuticals—0.4%
42		Schering-Plough Corp., 6.00%, 8/13/10		Baa3/BBB			7,982,794
		Real Estate (REIT)—0.5%
602		FelCor Lodging Trust, Inc., 1.95%, 12/31/49, Ser. A		B2/B-			11,981,736
		Savings & Loans—0.2%
102		Washington Mutual Capital Trust, 5.375%, 5/3/41		Baa3/BBB-			3,828,224
		Sovereign—1.3%
		Svensk Exportkredit AB,
362		10.00%, 10/20/08, Ser. TEVA (Teva Pharmaceutical
		Industries Ltd.) (f)		Aa1/AA+			15,817,433
162		12.50%, 12/12/08, Ser. XOM (Exxon Mobil Corp.) (f)		Aa1/AA+			14,026,488
							29,843,921
		Telecommunications—0.6%
239		Crown Castle International Corp., 6.25%, 8/15/12		NR/NR			13,497,568
		Waste Disposal—0.5%
40		Allied Waste Industries, Inc., 6.25%, 3/1/08, Ser. D		B3/B			10,416,825
		Total Convertible Preferred Stock (cost-$383,535,948)					372,833,388
CONVERTIBLE BONDS & NOTES—6.5%
Principal
Amount
(000)
		Auto Manufacturers—0.5%
$   11,760		Ford Motor Co., 4.25%, 12/15/36		Caa1/CCC+			11,804,100
		Commercial Services—0.6%
		Quanta Services, Inc.,
3,000		3.75%, 4/30/26 (b)(c)		NR/B+			3,656,250
7,930		3.75%, 4/30/26		NR/B+			9,664,688
							13,320,938
		Computers—1.2%
9,000		DST Systems, Inc., 4.125%, 8/15/23		NR/NR			14,130,000
11,485		Maxtor Corp., 6.80%, 4/30/10		Ba1/NR			12,432,512
							26,562,512
		Electric—0.5%
3,500		PG&E Corp., 9.50%, 6/30/10		NR/NR			10,084,375
		Electrical Components & Equipment—0.0%
750		General Cable Corp., 0.875%, 11/15/13		B1/B+			1,015,312
		Electronics—0.1%
1,000		Itron, Inc., 2.50%, 8/1/26		NR/B-			1,456,250
		Hotel/Gaming—0.1%
1,695		Mandalay Resort Group, 5.66%, 3/21/33 (d)		Ba2/BB			2,398,425
		Internet—0.2%
3,710		Amazon.com, Inc., 4.75%, 2/1/09		Ba3/B+			4,183,025

	NFJ Dividend, Interest & Premium Strategy Fund
| 1.31.08 |	Nicholas-Applegate Equity & Convertible Income Fund Annual Report	7

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NFJ Dividend, Interest & Premium Strategy Fund Schedule of Investments

January 31, 2008

Principal
Amount				Credit Rating
(000)				(Moody’s/S&P)*			Value
		Oil & Gas—0.7%
$      9,565		Devon Energy Corp., 4.95%, 8/15/08		Baa1/BBB		$	15,136,613
		Real Estate (REIT)—0.5%
9,500		Digital Realty Trust L.P., 4.125%, 8/15/26 (b)(c)		NR/NR			11,359,150
		Retail—0.6%
12,800		Sonic Automotive, Inc., 5.25%, 5/7/09		B2/B			12,608,000
		Semi-conductors—0.1%
2,000		Cypress Semiconductor Corp., 1.00%, 9/15/09		NR/NR			2,292,500
		Software—0.2%
5,000		Lawson Software, Inc., 2.50%, 4/15/12 (b)(c)		NR/NR			5,100,000
		Telecommunications—1.2%
13,300		Level 3 Communications, Inc., 6.00%, 3/15/10		Caa3/CCC			11,704,000
14,000		Nextel Communications, Inc., 5.25%, 1/15/10		Baa3/BBB-			13,790,000
2,437		Nortel Networks Corp., 4.25%, 9/1/08		B3/B-			2,415,676
							27,909,676
		Total Convertible Bonds & Notes (cost-$142,110,288)					145,230,876
SHORT-TERM INVESTMENTS—4.8%
		Time Deposits—4.8%
60,437		Royal Bank of Canada—Grand Cayman, 2.53%, 2/1/08					60,437,419
46,565		Societe Generale—Paris, 2.53%, 2/1/08					46,565,141
		(cost-$107,002,560)					107,002,560
		Total Investments, before call options written
		(cost-$2,370,838,557)—100.5%					2,263,946,307
CALL OPTIONS WRITTEN (e)—(0.6)%
Contracts
		American Stock Exchange Morgan Stanley Cyclical Flex Index,
300		strike price $1030, expires 2/22/08					(75,900	)
200		strike price $1080, expires 2/8/08					—
		American Stock Exchange Morgan Stanley Cyclical Index,
300		strike price $950, expires 3/22/08					(1,338,000	)
300		strike price $990, expires 3/22/08					(723,000	)
450		strike price $1010, expires 3/22/08					(724,500	)
450		strike price $1020, expires 3/22/08					(585,000	)
400		strike price $1030, expires 2/16/08					(46,000	)
550		strike price $1040, expires 2/16/08					(30,250	)
150		strike price $1050, expires 2/16/08					(9,750	)
		American Stock Exchange Oil Flex Index,
250		strike price $1440, expires 3/14/08					(669,500	)
200		strike price $1545, expires 2/1/08					—
200		strike price $1560, expires 2/8/08					—
		American Stock Exchange Oil Index,
100		strike price $1590, expires 2/16/08					(29,750	)
250		strike price $1600, expires 2/16/08					(191,250	)
200		strike price $1620, expires 2/16/08					(102,000	)
200		strike price $1650, expires 2/16/08					(52,000	)

	NFJ Dividend, Interest & Premium Strategy Fund
8	Nicholas-Applegate Equity & Convertible Income Fund Annual Report | 1.31.08 |

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NFJ Dividend, Interest & Premium Strategy Fund Schedule of Investments

January 31, 2008

Contracts					Value
		American Stock Exchange Pharmaceutical Flex Index,
750		strike price $342, expires 2/22/08		$	(2,250	)
800		strike price $357, expires 2/29/08			—
750		strike price $362, expires 2/1/08			—
		American Stock Exchange Pharmaceutical Index,
750		strike price $350, expires 2/16/08			(90,000	)
		Nasdaq 100 Stock Index,
100		strike price $2275, expires 2/16/08			(1,750	)
		Philadelphia Stock Exchange KBW Bank Flex Index,
3,000		strike price $91.75, expires 3/14/08			(1,752,000	)
3,000		strike price $106.75, expires 2/16/08			—
		Philadelphia Stock Exchange KBW Bank Index,
1,000		strike price $95, expires 2/16/08			(240,000	)
1,000		strike price $95, expires 3/22/08			(465,000	)
3,000		strike price $100, expires 2/16/08			(172,500	)
5,500		strike price $100, expires 3/22/08			(1,278,750	)
4,000		strike price $105, expires 3/22/08			(500,000	)
		Philadelphia Stock Exchange Utility Index,
500		strike price $600, expires 2/16/08			(123,750	)
		Standard & Poors 500 Flex Index,
250		strike price $1415, expires 3/14/08			(600,750	)
200		strike price $1475, expires 3/7/08			(101,000	)
200		strike price $1490, expires 2/29/08			(40,200	)
200		strike price $1515, expires 2/22/08			(5,800	)
200		strike price $1543, expires 2/1/08			—
200		strike price $1580, expires 2/16/08			—
		Standard & Poors 500 Index,
250		strike price $1400, expires 3/22/08			(877,500	)
450		strike price $1420, expires 3/22/08			(1,147,500	)
250		strike price $1430, expires 3/22/08			(542,500	)
250		strike price $1435, expires 3/22/08			(462,500	)
250		strike price $1440, expires 3/22/08			(455,000	)
350		strike price $1525, expires 2/16/08			(4,375	)
200		strike price $1540, expires 2/16/08			(3,500	)
200		strike price $1565, expires 2/16/08			(2,000	)
		Telecommunication Basket Index,
5,000		strike price $106.80, expires 2/1/08			(40,000	)
		Total Call Options Written (premium received-$19,411,700)			(13,485,525	)
		Total Investments, net of call options written
		(cost-$2,351,426,857)—99.9%			2,250,460,782
		Other assets less liabilities—0.1%			3,190,896
		Net Assets—100.0%		$	2,253,651,678

	NFJ Dividend, Interest & Premium Strategy Fund
| 1.31.08 |	Nicholas-Applegate Equity & Convertible Income Fund Annual Report	9

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Nicholas-Applegate Equity & Convertible Income Fund Schedule of Investments

January 31, 2008

Shares
(000)					Value
COMMON STOCK—62.3%
		Aerospace/Defense—1.9%
87		L-3 Communications Holdings, Inc. (a)		$	9,675,459
		Agriculture—1.6%
191		Archer-Daniels-Midland Co. (a)			8,413,550
		Automotive—1.5%
226		Johnson Controls, Inc.			7,990,083
		Beverages—3.2%
149		Coca-Cola Co. (a)			8,786,745
177		Molson Coors Brewing Co.—Cl. B			7,888,722
					16,675,467
		Chemicals—1.8%
83		Monsanto Co. (a)			9,298,788
		Commercial Services—1.7%
140		McKesson Corp. (a)			8,790,600
		Computers—2.7%
379		EMC Corp. (a) (e)			6,008,382
77		International Business Machines Corp. (a)			8,232,978
					14,241,360
		Cosmetics/Personal Care—1.5%
121		Procter & Gamble Co.			8,006,330
		Electric—1.6%
92		Constellation Energy Group, Inc. (a)			8,644,320
		Healthcare Products—3.0%
142		Baxter International, Inc. (a)			8,625,080
27		Intuitive Surgical, Inc. (a) (e)			6,850,380
					15,475,460
		Insurance—3.4%
35		Assurant, Inc.			2,254,597
171		Cigna Corp. (a)			8,386,696
86		Prudential Financial, Inc. (a)			7,230,509
					17,871,802
		Machinery—3.3%
137		AGCO Corp. (a) (e)			8,256,162
101		Deere & Co. (a)			8,854,984
					17,111,146
		Metals & Mining—1.6%
93		Freeport-McMoRan Copper & Gold, Inc. (a)			8,279,790
		Miscellaneous Manufacturing—3.0%
217		General Electric Co.			7,680,429
142		Textron, Inc. (a)			7,981,520
					15,661,949
		Oil & Gas—5.9%
69		Diamond Offshore Drilling, Inc. (a)			7,780,877
135		National Oilwell Varco, Inc. (a) (e)			8,106,958
99		Schlumberger, Ltd. (a)			7,493,178
127		Valero Energy Corp. (a)			7,528,968
					30,909,981

	NFJ Dividend, Interest & Premium Strategy Fund
10	Nicholas-Applegate Equity & Convertible Income Fund Annual Report | 1.31.08 |

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Nicholas-Applegate Equity & Convertible Income Fund Schedule of Investments

January 31, 2008

Shares
(000)							Value
		Pharmaceuticals—7.9%
162		Abbott Laboratories (a)				$	9,120,600
311		Bristol-Myers Squibb Co.					7,200,495
203		Gilead Sciences, Inc. (a) (e)					9,261,363
172		Medco Health Solutions, Inc. (a) (e)					8,633,792
155		Merck & Co., Inc.					7,159,516
							41,375,766
		Retail—3.1%
160		McDonald’s Corp. (a)					8,568,000
139		Target Corp.					7,703,388
							16,271,388
		Semi-conductors—3.2%
355		Intel Corp. (a)					7,515,400
289		Texas Instruments, Inc.					8,932,584
							16,447,984
		Software—3.4%
261		Microsoft Corp. (a)					8,492,300
443		Oracle Corp. (a) (e)					9,093,375
							17,585,675
		Telecommunications—7.0%
115		AT&T, Inc.					4,422,450
156		Harris Corp. (a)					8,504,295
267		Juniper Networks, Inc. (e)					7,240,905
206		Qualcomm, Inc. (a)					8,751,246
202		Verizon Communications, Inc.					7,845,680
							36,764,576
		Total Common Stock (cost-$358,302,455)					325,491,474
CONVERTIBLE PREFERRED STOCK—26.7%
				Credit Rating
				(Moody’s/S&P)*
		Agriculture—1.1%
39		Bunge Ltd., 4.875%, 12/31/49		Ba1/BB			5,596,900
		Automotive—0.9%
214		General Motors Corp., 6.25%, 7/15/33, Ser. C		Caa1/B-			4,513,290
		Banking—1.5%
2		Bank of America Corp., 7.25%, 12/31/49, Ser. L		Aa3/A+			2,401,748
43		Wells Fargo & Co., 8.00%, 6/1/08, Ser. AAPL (Apple, Inc.) (f)		Aa1/AA+			5,277,085
							7,678,833
		Commercial Services—0.8%
102		United Rentals, Inc., 6.50%, 8/1/28		B3/B-			4,098,000
		Diversified Financial Services—8.2%
61		Citigroup Funding, Inc., 4.583%, 9/27/08, Ser. GNW
		(Genworth Financial, Inc.) (d) (f)		Aa3/AA-			1,450,029
288		Eksportfinans AS, 13.00%, 11/1/08 (TimeWarner, Inc.) (f)		Aaa/A+			4,574,920
		Goldman Sachs Group, Inc.,
199		9.75%, 12/19/08, Ser. CSCO (Cisco Systems, Inc.) (f)		Aa3/NR			5,139,471
119		20.00%, 3/6/08, Ser. DISH (EchoStar Communications Corp) (f)		Aa3/NR			3,379,316

	NFJ Dividend, Interest & Premium Strategy Fund
| 1.31.08 |	Nicholas-Applegate Equity & Convertible Income Fund Annual Report	11

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Nicholas-Applegate Equity & Convertible Income Fund Schedule of Investments

January 31, 2008

Shares				Credit Rating
(000)				(Moody’s/S&P)*			Value
		Diversified Financial Services—(continued)
146		Lazard Ltd., 6.625%, 5/15/08		Ba1/NR		$	4,883,177
		Lehman Brothers Holdings, Inc.,
209		6.00%, 10/12/10, Ser. GIS (General Mills, Inc.) (f)		A1/A+			4,975,965
68		8.50%, 8/25/08, Ser. UTX (United Technologies Corp.) (f)		A1/A+			4,719,600
145		20.00%, 2/24/08, Ser. HPQ (Hewlett-Packard Co.) (f)		A1/A+			5,500,740
		Morgan Stanley,
11		20.00%, 3/8/08, Ser. GOOG (Google, Inc.) (f)		Aa3/NR			4,840,520
130		20.00%, 3/24/08, Ser. DIS (The Walt Disney Co.) (f)		Aa3/NR			3,254,944
							42,718,682
		Electric—2.9%
102		AES Trust III, 6.75%, 10/15/29		B3/B-			4,712,700
82		Entergy Corp., 7.625%, 2/17/09		NR/BBB			5,257,600
15		NRG Energy, Inc., 5.75%, 3/16/09		B2/CCC+			5,078,824
							15,049,124
		Hand/Machine Tools—0.9%
5		Stanley Works, 6.53%, 5/17/12 (d)		A2/A			4,724,850
		Insurance—2.5%
157		Metlife, Inc., 6.375%, 8/15/08		NR/BBB+			4,561,758
165		Platinum Underwriters Holdings Ltd., 6.00%, 2/15/09, Ser. A		NR/BB+			5,017,950
197		XL Capital Ltd., 7.00%, 2/15/09		Baa1/A-			3,383,436
							12,963,144
		Investment Companies—0.9%
81		Vale Capital Ltd., 5.50%, 6/15/10, Ser. 1		NR/NR			4,799,812
		Oil & Gas—0.9%
44		Chesapeake Energy Corp., 5.00%, 12/31/49		NR/B			4,888,312
		Packaging & Containers—1.1%
112		Owens-Illinois, Inc., 4.75%, 12/31/49		Caa1/B-			5,641,380
		Pharmaceuticals—0.7%
18		Schering-Plough Corp., 6.00%, 8/13/10		Baa3/BBB			3,525,494
		Real Estate (REIT)—0.7%
199		FelCor Lodging Trust, Inc., 1.95%, 12/31/49, Ser. A		B2/B-			3,956,121
		Sovereign—1.9%
		Svensk Exportkredit AB,
120		10.00%, 10/20/08 (Teva Pharmaceutical Industries Ltd.) (f)		Aa1/AA+			5,239,660
54		12.50%, 12/12/08 (ExxonMobil Corp.) (f)		Aa1/AA+			4,698,528
							9,938,188
		Telecommunications—1.0%
98		Crown Castle International Corp., 6.25%, 8/15/12		NR/NR			5,556,775
		Waste Disposal—0.7%
15		Allied Waste Industries, Inc., 6.25%, 3/1/08, Ser. D		B3/B			3,811,729
		Total Convertible Preferred Stock (cost-$153,030,404)					139,460,634

	NFJ Dividend, Interest & Premium Strategy Fund
12	Nicholas-Applegate Equity & Convertible Income Fund Annual Report | 1.31.08 |

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Nicholas-Applegate Equity & Convertible Income Fund Schedule of Investments

January 31, 2008

Principal
Amount				Credit Rating
(000)				(Moody’s/S&P)*			Value
CONVERTIBLE BONDS & NOTES—6.6%
		Auto Manufacturers—0.9%
$4,575		Ford Motor Co., 4.25%, 12/15/36		Caa1/CCC+		$	4,592,156
		Commercial Services—0.9%
4,800		Bowne & Co., Inc., 5.00%, 10/1/33		B2/B-			4,476,000
		Computers—1.0%
4,925		Maxtor Corp., 6.80%, 4/30/10		Ba1/NR			5,331,313
		Electric—0.8%
1,540		PG&E Corp., 9.50%, 6/30/10		NR/NR			4,437,125
		Internet—0.9%
4,100		Amazon.com, Inc., 4.75%, 2/1/09		Ba2/B+			4,622,750
		Oil & Gas—1.1%
3,775		Devon Energy Corp., 4.95%, 8/15/08		Baa1/BBB			5,973,938
		Telecommunications—1.0%
5,910		Level 3 Communications, Inc., 6.00%, 3/15/10		Caa3/CCC			5,200,800
		Total Convertible Bonds & Notes (cost-$37,294,945)					34,634,082
CORPORATE BONDS & NOTES—1.9%
		Oil & Gas—0.8%
4,340		Dynegy Holdings, Inc., 7.75%, 6/1/19		B2/B-			3,971,100
		Paper Products—0.2%
1,000		Neenah Paper, Inc., 7.375%, 11/15/14		B2/B+			895,000
		Telecommunications—0.9%
4,600		Millicom International Cellular S.A., 10.00%, 12/1/13, GDR		B1/B+			4,864,500
		Total Corporate Bonds & Notes (cost-$9,739,961)					9,730,600
U.S. GOVERNMENT SECURITIES—0.4%
2,000		United States Treasury Notes, 12.00%, 8/15/13 (cost-$2,125,625)					2,101,564
SHORT-TERM INVESTMENT—2.0%
		Time Deposit—2.0%
10,594		Bank of America, 2.53%, 2/1/08 (cost-$10,594,281)					10,594,281
		Total Investments, before call options written
		(cost-$571,087,671)—99.9%					522,012,635
CALL OPTIONS WRITTEN (e)—(0.2)%
Contracts
1,130		Abbott Laboratories, strike price $60, expires 2/16/08					(16,950	)
960		AGCO Corp., strike price $70, expires 2/16/08					(33,600	)
1,335		Archer-Daniels-Midland Co., strike price $50, expires 2/16/08					(26,700	)
995		Baxter International, Inc., strike price $65, expires 2/16/08					(8,955	)
1,195		Cigna Corp., strike price $55, expires 2/16/08					(29,875	)
1,035		Coca-Cola Co., strike price $65, expires 2/16/08					(5,175	)
645		Constellation Energy Group, Inc., strike price $105, expires 2/16/08					(12,255	)

	NFJ Dividend, Interest & Premium Strategy Fund
| 1.31.08 |	Nicholas-Applegate Equity & Convertible Income Fund Annual Report	13

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Nicholas-Applegate Equity & Convertible Income Fund Schedule of Investments

January 31, 2008

Notes to Schedules of Investments:

Contracts					Value
705		Deere & Co., strike price $100, expires 2/16/08		$	(31,725	)
480		Diamond Offshore Drilling, Inc., strike price $140, expires 2/16/08			(12,000	)
2,650		EMC Corp., strike price $19, expires 2/16/08			(13,250	)
650		Freeport-McMoRan Copper & Gold, Inc., strike price $115, expires 2/16/08			(6,500	)
1,420		Gilead Sciences, Inc., strike price $47.50, expires 2/16/08			(78,100	)
1,090		Harris Corp., strike price $65, expires 2/16/08			(5,450	)
2,480		Intel Corp., strike price $22.50, expires 3/22/08			(124,000	)
535		International Business Machines Corp., strike price $120, expires 2/16/08			(2,675	)
190		Intuitive Surgical, Inc., strike price $330, expires 2/16/08			(22,800	)
610		L-3 Communications Holdings, Inc., strike price $110, expires 2/16/08			(155,550	)
1,120		McDonalds Corp., strike price $65, expires 3/22/08			(5,600	)
980		McKesson Corp., strike price $67.50, expires 2/16/08			(29,400	)
1,200		Medco Health Solutions, Inc., strike price $55, expires 2/16/08			(12,000	)
1,825		Microsoft Corp., strike price $37.50, expires 2/16/08			(3,650	)
580		Monsanto Co., strike price $125, expires 2/16/08			(60,900	)
945		National Oilwell Varco, Inc., strike price $80, expires 2/16/08			(7,560	)
3,100		Oracle Corp., strike price $22.50, expires 3/22/08			(139,500	)
600		Prudential Financial, Inc., strike price $105, expires 2/16/08			(6,000	)
1,445		Qualcomm, Inc., strike price $45, expires 2/16/08			(49,130	)
695		Schlumberger Ltd., strike price $100, expires 2/16/08			(2,780	)
995		Textron, Inc., strike price $70, expires 3/22/08			(14,925	)
890		Valero Energy Corp., strike price $75, expires 3/22/08			(17,800	)
		Total Call Options Written (premium received-$4,595,709)			(934,805	)
		Total Investments, net of call options written
		(cost-$566,491,962)—99.7%			521,077,830
		Other assets less liabilities—0.3%			1,769,823
		Net Assets—100.0%		$	522,847,653

Notes to Schedules of Investments:
*	Unaudited
(a)	All or partial amount segregated as collateral for call options written.
(b)	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 securities are not considered to be illiquid.
(c)	Private Placement. Restricted as to resale and may not have a readily available market. For the NFJ Dividend, Interest & Premium Strategy Fund, securities with an aggregate market value of $20,115,400, representing 0.89% of net assets, are restricted.
(d)	Variable rate security. Interest rate disclosed reflects the rate in effect on January 31, 2008.
(e)	Non-income producing.
(f)	Securities exchangeable or convertible into securities of an entity different than the issuer. Such entity is identified in the parenthetical.

Glossary:
ADR — American Depositary Receipt
GDR — Global Depositary Receipt
NR — Not Rated
REIT — Real Estate Investment Trust

	NFJ Dividend, Interest & Premium Strategy Fund
14	Nicholas-Applegate Equity & Convertible Income Fund Annual Report | 1.31.08 |

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NFJ Dividend, Interest & Premium Strategy Fund
Nicholas-Applegate Equity & Convertible Income Fund	Statements of Assets
January 31, 2008	and Liabilities

		NFJ Dividend,			Nicholas-Applegate
		Interest &			Equity &
		Premium Strategy			Convertible Income
		Fund			Fund
Assets:
Investments, at value (cost—$2,370,838,557 and $571,087,671,
respectively)		$2,263,946,307			$522,012,635
Receivable for investments sold		48,739,478			3,996,213
Dividends and interest receivable		5,653,829			2,038,625
Prepaid expenses		18,186			4,382
Total Assets		2,318,357,800			528,051,855
Liabilities:
Payable for investments purchased		49,160,001			3,613,193
Call options written, at value (premiums received—$19,411,700 and
$4,595,709, respectively)		13,485,525			934,805
Investment management fees payable		1,719,599			450,577
Accrued expenses		340,997			205,627
Total Liabilities		64,706,122			5,204,202
Net Assets		$2,253,651,678			$522,847,653
Composition of Net Assets:
Common Stock:
Par value ($0.00001 per share applicable to 94,524,325 and
22,304,189 shares issued and outstanding, respectively)		$945			$223
Paid-in-capital in excess of par		2,253,871,358			531,413,558
Dividends in excess of net investment income		(839,868	)		(248,907	)
Accumulated net realized gain		101,585,318			37,096,911
Net unrealized depreciation of investments and call options written		(100,966,075	)		(45,414,132	)
Net Assets		$2,253,651,678			$522,847,653
Net Asset Value Per Common Share		$23.84			$23.44

	NFJ Dividend, Interest & Premium Strategy Fund
See accompanying Notes to Financial Statements | 1.31.08 |	Nicholas-Applegate Equity & Convertible Income Fund Annual Report	15

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NFJ Dividend, Interest & Premium Strategy Fund
Nicholas-Applegate Equity & Convertible Income Fund	Statements of
For the periods indicated	Operations

			NFJ Dividend,				Nicholas-Applegate
			Interest &				Equity &
			Premium Strategy				Convertible Income
			Fund				Fund
							For the period
							February 27, 2007*
			Year ended				through
			January 31, 2008				January 31, 2008
Investment Income:
Dividends (net of foreign withholding taxes of $274,585 and $0 respectively)		$	87,750,560			$	15,135,573
Interest			11,270,717				4,273,518
Consent and other fee income			17,179				—
Total Investment Income			99,038,456				19,409,091
Expenses:
Investment management fees			21,831,315				5,096,961
Custodian and accounting agent fees			486,921				123,215
Shareholder communications			374,048				85,005
Trustees’ fees and expenses			139,123				35,443
Audit and tax services			76,108				65,277
New York Stock Exchange listing fees			74,722				18,057
Legal fees			64,416				28,530
Insurance expense			42,791				5,311
Transfer agent fees			24,015				22,368
Miscellaneous			27,656				16,530
Total expenses			23,141,115				5,496,697
Net Investment Income			75,897,341				13,912,394
Realized and Change in Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments			216,490,173				77,305,327
Call options written			(15,578,170	)			(16,731,398	)
Net change in unrealized appreciation/depreciation of:
Investments			(252,558,544	)			(49,075,036	)
Call options written			10,013,105				3,660,904
Net realized and change in unrealized gain (loss) on investments and
call options written			(41,633,436	)			15,159,797
Net Increase in Net Assets Resulting from Investment Operations		$	34,263,905			$	29,072,191

* Commencement of Operations.

	NFJ Dividend, Interest & Premium Strategy Fund
16	Nicholas-Applegate Equity & Convertible Income Fund Annual Report | 1.31.08 | See accompanying Notes to Financial Statements

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NFJ Dividend, Interest & Premium Strategy Fund
Nicholas-Applegate Equity & Convertible Income Fund	Statements of Changes
	in Net Assets

										Nicholas-Applegate
			NFJ Dividend,							Equity & Convertible
			Interest & Premium Strategy Fund							Income Fund
										For the period
										February 27, 2007*
			Year ended January 31,							through
			2008				2007			January 31, 2008
Investment Operations:
Net investment income		$	75,897,341			$	71,327,166				$	13,912,394
Net realized gain on investments and call
options written			200,912,003				127,634,870				60,573,929
Net change in unrealized appreciation/depreciation of
investments and call options written			(242,545,439	)			145,481,658				(45,414,132		)
Net increase in net assets resulting from
investment operations			34,263,905				344,443,694				29,072,191
Dividends and Distributions to Shareholders from:
Net investment income			(95,740,853	)			(69,190,683	)			(15,575,272		)
Net realized gains			(116,466,258	)			(129,310,401	)			(22,063,047		)
Total dividends and distributions to shareholders			(212,207,111	)			(198,501,084	)			(37,638,319		)
Capital Share Transactions:
Net proceeds from the sale of common stock			—				—				532,412,500
Offering costs charged to paid-in capital in
excess of par			—				—				(1,098,731		)
Net increase from capital share transactions			—				—				531,313,769
Total increase (decrease) in net assets			(177,943,206	)			145,942,610				522,747,641
Net Assets:
Beginning of period			2,431,594,884				2,285,652,274				100,012
End of period (including undistributed
(dividends in excess of) net investment
income of $(839,868), $9,736,335, and
$(248,907), respectively)		$	2,253,651,678			$	2,431,594,884				$	522,847,653
Common Shares issued			—				—				22,300,000

* Commencement of Operations

	NFJ Dividend, Interest & Premium Strategy Fund
See accompanying Notes to Financial Statements | 1.31.08 |	Nicholas-Applegate Equity & Convertible Income Fund Annual Report	17

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NFJ Dividend, Interest & Premium Strategy Fund
Nicholas-Applegate Equity & Convertible Income Fund	Notes to Financial
January 31, 2008	Statements

1. Organization and Significant Accounting Policies
NFJ Dividend, Interest & Premium Strategy Fund and Nicholas-Applegate Equity & Convertible Income Fund, collectively referred to as the “Funds”, were organized as Massachusetts business trusts on August 20, 2003 and December 12, 2006, respectively. Prior to commencing operations on February 28, 2005 and February 27, 2007, respectively, the Funds had no operations other than matters relating to their organization and registration as diversified, closed-end management investment companies under the Investment Company Act of 1940 and the rules and regulations thereunder, as amended, and the sale and issuance of 4,189 shares of beneficial interest at an aggregate par of $100,012, for each Fund, to Allianz Global Investors of America L.P. (“Allianz Global”). Allianz Global Investors Fund Management LLC (the “Investment Manager”) serves as the Funds’ investment manager and is an indirect wholly-owned subsidiary of Allianz Global. Allianz Global is an indirect, majority-owned subsidiary of Allianz SE, a publicly traded European insurance and financial services company. Each Fund has an unlimited amount of $0.00001 par value common stock authorized.

The Nicholas-Applegate Equity & Convertible Income Fund issued 20,300,000 shares of common stock in its initial public offering. An additional 2,000,000 shares were issued in connection with the underwriters’ over-allotment option. These shares were all issued at $25.00 per share before an underwriting discount of $1.125 per share. Offering costs of $1,098,731 (representing $0.0493 per share) were offset against the proceeds of the offering and over-allotment option and have been charged to paid-in capital in excess of par.

NFJ Dividend, Interest & Premium Strategy’s primary investment objective is to seek current income and gains, with a secondary objective of long-term capital appreciation. The Fund pursues its investment objectives by investing in a diversified portfolio of dividend-paying common stocks and income-producing convertible securities. The Fund will also employ a strategy of writing (selling) call options on equity indexes in an attempt to generate gains from option premiums.

Nicholas Applegate Equity & Convertible Income’s investment objective is to seek total return comprised of capital appreciation, current income and gains. The Fund pursues its objective by investing in a diversified portfolio of equity securities and income-producing convertible securities. The Fund will also employ a strategy of writing (selling) call options on the equity securities held by the Fund.

The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from these estimates.

In the normal course of business, the Funds enter into contracts that contain a variety of representations which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet been asserted. However, the Funds expect the risk of any loss to be remote.

In July 2006, the Financial Accounting Standards Board issued Interpretation No. 48, “Accounting for Uncertainty in Income Taxes—an Interpretation of FASB Statement No. 109” (the “Interpretation”). The Interpretation establishes for all entities, including pass-through entities such as the Funds, a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether an entity is taxable in a particular jurisdiction), and requires certain expanded tax disclosures. Fund management has determined that its evaluation of the Interpretation has resulted in no material impact to the Funds’ financial statements at January 31, 2008.

In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards (“SFAS”) 157, Fair Value Measurements, which clarifies the definition of fair value and requires companies to expand their disclosure about the use of fair value to measure assets and liabilities in interim and annual periods subsequent to initial recognition. Adoption of SFAS 157 requires the use of the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. SFAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. At this time, the Funds are in the process of reviewing SFAS 157 against their current valuation policies to determine future applicability.

	NFJ Dividend, Interest & Premium Strategy Fund
18	Nicholas-Applegate Equity & Convertible Income Fund Annual Report | 1.31.08 |

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NFJ Dividend, Interest & Premium Strategy Fund
Nicholas-Applegate Equity & Convertible Income Fund	Notes to Financial
January 31, 2008	Statements

1. Organization and Significant Accounting Policies (continued)

The following is a summary of significant accounting policies followed by the Funds:

(a) Valuation of Investments
Portfolio securities and other financial instruments for which market quotations are readily available are stated at market value. Portfolio securities and other financial instruments for which market quotations are not readily available or if a development/event occurs that may significantly impact the value of a security, are fair-valued, in good faith, pursuant to guidelines established by the Board of Trustees or persons acting at their discretion pursuant to guidelines approved by the Board of Trustees. The Funds’ investments, including over-the-counter options, are valued daily using prices supplied by an independent pricing service or dealer quotations, or the last sale price on the exchange that is the primary market for such securities, or the mean between the last quoted bid and ask 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. 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. Exchange traded options are valued at the settlement price determined by the relevant exchange. Short-term securities maturing in 60 days or less are valued at amortized cost, if their original term to maturity was 60 days 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 Funds to value securities may differ from the value that would be realized if the securities were sold and the differences could be material to the financial statements. Each Fund’s net asset value is normally determined as of the close of regular trading (normally, 4:00 p.m. Eastern time) on the New York Stock Exchange (“NYSE”) on each day the NYSE is open for business.

(b) Investment Transactions and Investment Income
Investment transactions are accounted for on the trade date. Realized gains and losses on investments are determined on the identified cost basis. Interest income is recorded on an accrual basis. Discounts or premiums on corporate bonds and notes purchased are accreted or amortized, respectively to interest income over the lives of the respective securities using the effective interest method. Payments received from certain investments may be comprised of dividends, realized gains and return of capital. These payments may initially be recorded as dividend income and may be subsequently be reclassified as realized gains and/or return of capital upon receipt of information from the issuer. Dividend income is recorded on the ex-dividend date.

(c) Federal Income Taxes
The Funds intend to distribute all of their taxable income and to comply with the other requirements of the U.S. Internal Revenue Code of 1986, as amended, applicable to regulated investment companies. Accordingly, no provision for U.S. federal income taxes is required.

(d) Dividends and Distributions
The Funds declare quarterly dividends and distributions from net investment income and gains from option premiums and the sale of portfolio securities. The Funds record dividends and distributions to shareholders on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from generally accepted accounting principles. These “book-tax” differences are considered either temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their income tax treatment; temporary differences do not require reclassification. To the extent dividends and/or distributions exceed current and accumulated earnings and profits for federal income tax purposes, they are reported as dividends and/or distributions of paid-in capital in excess of par.

(e) Call Option Transactions
The Funds employ a strategy of writing (selling) call options on equity securities and/or equity indexes in an attempt to generate gains from option premiums. When an option is written, the premium received is recorded as an asset with an equal liability, which is subsequently adjusted to the current market value of the option. Premiums received from writing options, which expire unexercised, are recorded on the expiration date as a realized gain. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium is less than the amount paid for the closing purchase transactions, as a realized loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security or index option in determining whether there has been a realized gain or loss.

The Funds, as writers of call options, may have no control over whether the underlying securities or index option may be sold (called). As a result, the Funds bear the market risk of an unfavorable change in the price of the security or index underlying the written call option.

The use of derivative transactions may involve elements of both market and credit risk in excess of the amounts reflected on the Statements of Assets and Liabilities.

	NFJ Dividend, Interest & Premium Strategy Fund
| 1.31.08 |	Nicholas-Applegate Equity & Convertible Income Fund Annual Report	19

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NFJ Dividend, Interest & Premium Strategy Fund
Nicholas-Applegate Equity & Convertible Income Fund	Notes to Financial
January 31, 2008	Statements

1. Organization and Significant Accounting Policies (continued)

(f) Concentration of Risk
It is the Funds’ policy to invest a portion of their assets in convertible securities. Although convertible securities do derive part of their value from that of the securities into which they are convertible, they are not considered derivative financial instruments. However, certain of the Funds’ investments in synthetic convertibles include features which render them more sensitive to price changes in their underlying securities. Consequently, the Funds are exposed to greater downside risk than traditional convertible securities, but still less than that of the underlying common stock.

2. Investment Manager/Sub-Advisers
Each Fund has entered into Investment Management Agreements (the “Agreements”) with the Investment Manager. Subject to the supervision of the Funds’ Board of Trustees, the Investment Manager is responsible for managing, either directly or through others selected by it, the Funds’ investment activities, business affairs and administrative matters. Pursuant to the Agreements, the NFJ Dividend, Interest & Premium Strategy Fund pays the Investment Manager an annual fee, payable monthly, at the annual rate of 0.90% of the Fund’s average daily total managed assets. The Nicholas-Applegate Equity & Convertible Income Fund pays the Investment Manager an annual fee, payable monthly, at the annual rate of 1.00% of the Fund’s average daily total managed assets. Total managed assets means the total assets of each Fund (including assets attributable to any preferred shares and borrowings that may be outstanding) minus accrued liabilities (other than liabilities representing borrowings). The Investment Manager has retained its affiliates, NFJ Investment Group L.P (“NFJ”), Nicholas-Applegate Capital Management LLC (“NACM”), and Oppenheimer Capital LLC (“OCC”) (the “Sub-Advisers”), to manage the NFJ Dividend, Interest & Premium Strategy Fund’s equity component, convertible component and index option strategy, respectively. NACM serves as the sole sub-adviser to the Nicholas-Applegate Equity & Convertible Income Fund. Subject to the supervision of the Investment Manager, NFJ, NACM and OCC make all of NFJ Dividend, Interest & Premium Strategy Funds’ investment decisions in connection with their respective components of the Funds’ investments. Subject to the supervision of the Investment Manager, NACM is responsible for making all of Nicholas-Applegate Equity & Convertible Income Fund’s investment decisions. Pursuant to Sub-Advisory Agreements, the Investment Manager and not the Funds, pays each of the Sub-Advisers an annual fee payable on a monthly basis.

3. Investment in Securities
For the fiscal year ended January 31, 2008, and for the period February 27, 2007 (commencement of operations) through January 31, 2008 for NFJ Dividend, Interest & Premium Strategy Fund and Nicholas-Applegate Equity & Convertible Income Fund, respectively, purchases and sales of investments, other than short-term securities and U.S. government obligations were:

		NFJ Dividend,		Nicholas-Applegate
		Interest & Premium		Equity & Convertible
		Strategy Fund		Income Fund
Purchases		$1,938,594,820		$1,714,479,596
Sales		1,924,418,315		1,218,236,154

For the fiscal year ended January 31, 2008, and for the period February 27, 2007 (commencement of operations) through January 31, 2008 for NFJ Dividend, Interest & Premium Strategy Fund and Nicholas-Applegate Equity & Convertible Income Fund, respectively, purchases and sales of U.S. government obligations were:

		NFJ Dividend,		Nicholas-Applegate
		Interest & Premium		Equity & Convertible
		Strategy Fund		Income Fund
Purchases		—		$51,933,125
Sales		—		47,202,188

(a) Transactions in call options written for the year ended January 31, 2008 were:

NFJ Dividend, Interest & Premium Strategy Fund:		Contracts				Premiums
Options outstanding, January 31, 2007		56,880			$	25,702,860
Options written		292,457				135,271,896
Options terminated in closing purchase transactions		(103,457	)			(61,657,380	)
Options expired		(208,780	)			(79,905,676	)
Options outstanding, January 31, 2008		37,100			$	19,411,700

	NFJ Dividend, Interest & Premium Strategy Fund
20	Nicholas-Applegate Equity & Convertible Income Fund Annual Report | 1.31.08 |

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NFJ Dividend, Interest & Premium Strategy Fund
Nicholas-Applegate Equity & Convertible Income Fund	Notes to Financial
January 31, 2008	Statements

3. Investment in Securities (continued)

Transactions in call options written for the period February 27, 2007 (commencement of operations) through January 31, 2008 were:

Nicholas-Applegate Equity & Convertible Income Fund:		Contracts				Premiums
Options outstanding, February 27, 2007*		—			$	—
Options written		287,941				41,815,193
Options terminated in closing purchase transactions		(171,226	)			(27,949,084	)
Options expired		(82,532	)			(9,194,424	)
Options exercised		(1,703	)			(75,976	)
Options outstanding, January 31, 2008		32,480			$	4,595,709

*Commencement of operations

4. Income Tax Information
The tax character of dividends and distributions paid were:

		Year Ended			Year Ended
NFJ Dividend, Interest & Premium Strategy:		January 31, 2008			January 31, 2007
Ordinary Income		$187,102,394			$198,444,832
Long-term Capital Gains		25,104,717			56,252

At January 31, 2008, the tax character of distributable earnings was $104,930,451 of ordinary income and $2,514,045 of long-term capital gains.

For the year ended January 31, 2008, permanent differences are primarily attributable to the differing treatment of convertible preferred securities, REIT’s and distribution reclasses. These adjustments were to decrease undistributed net investment loss and decrease net realized gains by $9,267,309.

The tax character of dividends and distributions paid were:

	For the Period
	February 27 2007*
	through
Nicholas-Applegate Equity & Convertible Income Fund:	January 31, 2008
Ordinary Income	$37,638,319

*Commencement of operations

At January 31, 2008, the tax character of distributable earnings of $37,096,911 was comprised entirely of ordinary income.

For the period ended January 31, 2008, permanent differences are primarily attributable to the differing treatment of premium amortization, convertible preferred securities and distribution reclasses. These adjustments were to decrease undistributed net investment loss and decrease net realized gains by $1,413,971.

The cost of investments for federal income tax purposes and gross unrealized appreciation and gross unrealized depreciation of investments at January 31, 2008 were:

					Gross			Gross			Net
		Cost of			Unrealized			Unrealized			Unrealized
		Investments			Appreciation			Depreciation			(Depreciation)
NFJ Dividend, Interest &
Premium Strategy		$2,372,330,179			$99,726,713			$208,110,585			$(108,383,872	)
Nicholas-Applegate Equity &
Convertible Income		571,056,066			9,227,628			58,271,059			(49,043,431	)

	NFJ Dividend, Interest & Premium Strategy Fund
| 1.31.08 |	Nicholas-Applegate Equity & Convertible Income Fund Annual Report	21

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NFJ Dividend, Interest & Premium Strategy Fund
Nicholas-Applegate Equity & Convertible Income Fund	Notes to Financial
January 31, 2008	Statements

4. Income Tax Information (continued)

The difference between book and tax basis unrealized depreciation, in the NFJ Dividend, Interest & Premium Strategy Fund, is primarily attributable to wash sales and the differing treatment of convertible securities and in the Nicholas-Applegate Equity & Convertible Income Fund it is primarily attributable to the differing treatment of convertible securities and premium amortization.

5. Legal Proceedings
In June and September 2004, the Investment Manager and certain of its affiliates (including PEA Capital LLC (“PEA”), Allianz Global Investors Distributors LLC (“AGID”) and Allianz Global Investors of America, L.P.) agreed to settle, without admitting or denying the allegations, claims brought by the Securities and Exchange Commission and the New Jersey Attorney General alleging violations of federal and state securities laws with respect to certain open-end funds for which the Investment Manager serves as investment adviser. The settlements related to an alleged “market timing” arrangement in certain open-end funds formerly sub-advised by PEA. The Investment Manager and its affiliates agreed to pay a total of $68 million to settle the claims. In addition to monetary payments, the settling parties agreed to undertake certain corporate governance, compliance and disclosure reforms related to market timing and consented to cease and desist orders and censures. Subsequent to these events, PEA deregistered and dissolved. None of the settlements alleged that any inappropriate activity took place with respect to the Funds.

Since February 2004, the Investment Manager, the Sub-Advisers and certain of its affiliates and their employees have been named as defendants in a number of pending lawsuits concerning “market timing”, which allege the same or similar conduct underlying the regulatory settlements discussed above. The market timing lawsuits have been consolidated in a multi-district litigation proceeding in the U.S. District Court for the District of Maryland. Any potential resolution of these matters may include, but not be limited to, judgments or settlements for damages against the Investment Manager, the Sub-Adviser, or its affiliates or related injunctions.

The Investment Manager and the Sub-Advisers believe that these matters are not likely to have a material adverse effect on the Funds or on their ability to perform their respective investment advisory activities relating to the Funds.

The foregoing speaks only as of the date hereof.

	NFJ Dividend, Interest & Premium Strategy Fund
22	Nicholas-Applegate Equity & Convertible Income Fund Annual Report | 1.31.08 |

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NFJ Dividend, Interest & Premium Strategy Fund  Financial Highlights

For a share outstanding throughout each period:

								For the Period
								February 28, 2005*
		Year ended January 31,						through
		2008			2007			January 31, 2006
Net asset value, beginning of period		$25.72			$24.18			$23.88	**
Investment Operations:
Net investment income		0.80			0.75			0.70
Net realized and change in unrealized gain (loss) on
investments, call options written and short sales		(0.44	)		2.89			1.28
Total from investment operations		0.36			3.64			1.98
Dividends and Distributions to Shareholders from:
Net investment income		(1.01	)		(0.73	)		(0.65	)
Net realized gains		(1.23	)		(1.37	)		(1.00	)
Total dividends and distributions to shareholders		(2.24	)		(2.10	)		(1.65	)
Capital Share Transactions:
Offering costs charged to paid-in capital in excess of par		—			—			(0.03	)
Net asset value, end of period		$23.84			$25.72			$24.18
Market price, end of period		$23.26			$25.87			$22.20
Total Investment Return (1)		(1.65	)%		27.15	%		(4.65	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)		$2,253,652			$2,431,595			$2,285,652
Ratio of expenses to average net assets		0.95	%		0.95	%		0.94	%(2)
Ratio of net investment income to average net assets		3.13	%		3.08	%		3.27	%(2)
Portfolio turnover		82	%		69	%		97	%

*	Commencement of operations.
**	Initial public offering price of $25.00 per share less underwriting discount of $1.125 per share.
(1)	Total investment return is calculated assuming a purchase of a share of common stock at the current market price on the first day of each period and a sale of a share of common stock at the current market price on the last day of each period reported. Dividends and distributions are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Fund’s dividend reinvestment plan. Total investment return does not reflect brokerage commissions or sales charges. Total investment return for a period of less than one year is not annualized.
(2)	Annualized.

	NFJ Dividend, Interest & Premium Strategy Fund
See accompanying Notes to Financial Statements | 1.31.08 |	Nicholas-Applegate Equity & Convertible Income Fund Annual Report	23

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Nicholas-Applegate Equity & Convertible Income Fund  Financial Highlights

For a share outstanding for the Period February 27, 2007* through January 31, 2008:

Net asset value, beginning of period		$23.88	**
Investment Operations:
Net investment income		0.62
Net realized and unrealized gain on investments and call options written		0.68
Total from investment operations		1.30
Dividends and Distributions to Shareholders from:
Net investment income		(0.70	)
Net realized gains		(0.99	)
Total dividends and distributions to shareholders		(1.69	)
Capital Share Transactions:
Offering costs charged to paid-in capital in excess of par		(0.05	)
Net asset value, end of period		$23.44
Market price, end of period		$22.02
Total Investment Return (1)		(5.66	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)		$522,848
Ratio of expenses to average net assets (2)		1.08	%
Ratio of net investment income to average net assets (2)		2.73	%
Portfolio turnover		241	%

*	Commencement of operations.
**	Initial public offering price of $25.00 per share less underwriting discount of $1.125 per share.
(1)	Total investment return is calculated assuming a purchase of a share of common stock at the current market price on the first day of each period and a sale of a share of common stock at the current market price on the last day of each period reported. Dividends and distributions are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Fund’s dividend reinvestment plan. Total investment return does not reflect brokerage commissions or sales charges. Total investment return of a period of less than one year is not annualized.
(2)	Annualized.

	NFJ Dividend, Interest & Premium Strategy Fund
24	Nicholas-Applegate Equity & Convertible Income Fund Annual Report | 1.31.08 | See accompanying Notes to Financial Statements

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NFJ Dividend, Interest & Premium Strategy Fund
Nicholas-Applegate Equity & Convertible Income Fund	Report of
	Independent
	Registered Public
	Accounting Firm

To the Shareholders and Board of Trustees of:

NFJ Dividend, Interest & Premium Strategy Fund
Nicholas-Applegate Equity & Convertible Income Fund

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the NFJ Dividend, Interest & Premium Strategy Fund and Nicholas-Applegate Equity & Convertible Income Fund (the “Funds”) at January 31, 2008, and the results of the operations, the changes in net assets and the financial highlights for the periods presented of the NFJ Dividend, Interest & Premium Strategy Fund, and the results of the operations, the changes in net assets and the financial highlights for the period from February 27, 2007 (commencement of operations) through January 31, 2008 of the Nicholas-Applegate Equity & Convertible Income Fund, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at January 31, 2008, by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
New York, New York
March 27, 2008

 

	NFJ Dividend, Interest & Premium Strategy Fund
| 1.31.08 |	Nicholas-Applegate Equity & Convertible Income Fund Annual Report	25

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NFJ Dividend, Interest & Premium Strategy Fund
Nicholas-Applegate Equity & Convertible Income Fund	Tax Information / Annual
	Shareholder Meeting
	Results / Subsequent
	Dividend Declarations
	(unaudited)

Tax Information

Subchapter M of the Internal Revenue Code of 1986, as amended, requires the Funds to advise shareholders within 60 days of the Funds’ tax year ended January 31, 2007 as to the federal tax status of dividends and distributions received by shareholders during such tax year. Per share dividends for the tax year ended January 31, 2008 were as follows:

NFJ Dividend, Interest & Premium Strategy:

Dividends from ordinary income		$1.97881
Distributions from long-term gains		$0.26619

Pursuant to the Jobs and Growth Tax Relief Reconciliation Act of 2003, the Fund designates qualified dividend income of 24%, or the maximum amount allowable.

The percentage of ordinary dividends paid by the Fund during the period ended January 31, 2008 which qualified for the Dividends Received Deduction available to corporate shareholders was 21%.

Nicholas-Applegate Equity & Convertible Income Fund

Dividends from ordinary income

$1.6875

Pursuant to the Jobs and Growth Tax Relief Reconciliation Act of 2003, the Fund designates qualified dividend income of 13%, or the maximum amount allowable.

The percentage of ordinary dividends paid by the Fund during the period ended January 31, 2008 which qualified for the Dividends Received Deduction available to corporate shareholders was 13%.

Since the Funds’ tax year is not the calendar year, another notification will be sent with respect to calendar year 2008. In January 2009, shareholders will be advised on IRS Form 1099 DIV as to the federal tax status of dividends and distributions received during calendar 2007. The amount that will be reported will be the amount to use on your 2008 federal income tax return and may differ from the amount which must be reported in connection with the Fund’s tax year ended January 31, 2008. Shareholders are advised to consult their tax advisers as to the federal, state and local tax status of the dividend income received from the Fund.

Annual Shareholder Meeting Results
NFJ Dividend, Interest & Premium Strategy Fund

The Fund held its annual meeting of shareholders on May 31, 2007. Shareholders voted to re-elect R. Peter Sullivan III and John J. Dalessandro II and elect William B. Ogden IV and John C. Maney as trustees as indicated below.

				Withheld
		Affirmative		Authority
Re-election of R. Peter Sullivan III—Class II to serve until 2010		86,723,610		838,426
Re-election of John J. Dalessandro II—Class II to serve until 2010		86,674,255		887,781
Election of William B. Ogden IV—Class I to serve until 2009		86,738,716		823,320
Election of John C. Maney—Class III to serve until 2008		86,738,396		823,640

Paul Belica, Robert E. Connor and Hans W. Kertess continue to serve as Trustees of the Fund.

Subsequent Dividend Declarations

On March 14, 2008 the following quarterly dividends were declared to shareholders, payable March 28, 2008 to shareholders of record on March 24, 2008:

NFJ Dividend, Interest & Premium Strategy		$0.5250 per share
Nicholas-Applegate Equity & Convertible Income		$0.5625 per share

	NFJ Dividend, Interest & Premium Strategy Fund
26	Nicholas-Applegate Equity & Convertible Income Fund Annual Report | 1.31.08 |

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NFJ Dividend, Interest & Premium Strategy Fund
Nicholas-Applegate Equity & Convertible Income Fund	Privacy Policy / Proxy
	Voting Policies &
	Procedures (unaudited)

Privacy Policy

Our Commitment to You
We consider customer privacy to be a fundamental aspect of our relationship with clients. We are committed to maintaining the confidentiality, integrity, and security of our current, prospective and former clients’ personal information. To ensure clients’ privacy, we have developed policies designed to protect this confidentiality, while allowing client needs to be served.

Obtaining Personel Information
In the course of providing you with products and services, we and certain service provider to the Funds, such as the Funds’ investment adviser, may obtain non-public personal information about you. This information may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from your transactions, from your brokerage or financial advisory firm, financial adviser or consultant, and/or from information captured on our internet web sites.

Respecting Your Privacy
We do not disclose any personal or account information provided by you or gathered by us to non-affiliated third parties, except as required or permitted by law. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on client satisfaction, and gathering shareholder proxies. We may also retain non-affiliated companies to market our products and enter in joint marketing agreements with other companies. These companies may have access to your personal and account information, but are permitted to use the information solely to provide the specific service or as otherwise permitted by law. We may also provide your personal and account information to your brokerage or financial advisory firm and/or to your financial adviser or consultant.

Sharing Information with Third Parties
We do reserve the right to disclose or report personal information to non-affiliated third parties in limited circumstances where we believe in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to protect our rights or property, or upon reasonable request by any mutual fund in which you have chosen to invest. In addition, we may disclose information about you or your accounts to a non-affiliated third party with the consent or at your request or if you consent in writing to the disclosure.

Sharing Information with Affiliates
We may share client information with our affiliates in connection with servicing your account or to provide you with information about products and services that we believe may be of interest to you. The information we share may include, for example, your participation in our mutual funds or other investment programs, your ownership of certain types of accounts (such as IRAs), or other data about your accounts. Our affiliates, in turn, are not permitted to share your information with non-affiliated entities, except as required or permitted by law.

Procedures to Safeguard Private Information
The Funds take seriously the obligation to safeguard shareholder non-public personal information. In addition to this policy, the Funds have also implemented procedures that are designed to restrict access to a shareholder’s non-public personal information only to internal personnel who need to know that information in order to provide products or services to such shareholders. In order to guard a shareholder’s non-public personal information, physical, electronic and procedural safeguards are in place.

Proxy Voting Policies & Procedures:

A description of the policies and procedures that the Funds have adopted to determine how to vote proxies relating to portfolio securities and information about how the Funds voted proxies relating to portfolio securities held during the twelve months ended June 30, 2007 is available (i) without charge, upon request, by calling the Funds’ transfer agent at (800) 331-1710; (ii) on the Funds’ website at www.allianzinvestors.com/closedendfunds; and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.

	NFJ Dividend, Interest & Premium Strategy Fund
| 1.31.08 |	Nicholas-Applegate Equity & Convertible Income Fund Annual Report	27

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NFJ Dividend, Interest & Premium Strategy Fund
Nicholas-Applegate Equity & Convertible Income Fund	Dividend Reinvestment
	Plan (unaudited)

Pursuant to the Funds’ Dividend Reinvestment Plan (the “Plan”), all Common Shareholders whose shares are registered in their own names will have all dividends, including any capital gain dividends, reinvested automatically in additional Common Shares by PFPC Inc., as agent for the Common Shareholders (the “Plan Agent”), unless the shareholder elects to receive cash. An election to receive cash may be revoked or reinstated at the option of the shareholder. In the case of record shareholders such as banks, brokers or other nominees that hold Common Shares for others who are the beneficial owners, the Plan Agent will administer the Plan on the basis of the number of Common Shares certified from time to time by the record shareholder as representing the total amount registered in such shareholder’s name and held for the account of beneficial owners who are to participate in the Plan. Shareholders whose shares are held in the name of a bank, broker or nominee should contact the bank, broker or nominee for details. All distributions to investors who elect not to participate in the Plan (or whose broker or nominee elects not to participate on the investor’s behalf), will be paid cash by check mailed, in the case of direct shareholder, to the record holder by PFPC Inc., as the Funds’ dividend disbursement agent.

Unless you elect (or your broker or nominee elects) not to participate in the Plan, the number of Common Shares you will receive will be determined as follows:

	(1)	If on the payment date the net asset value of the Common Shares is equal to or less than the market price per Common Share plus estimated brokerage commissions that would be incurred upon the purchase of Common Shares on the open market, the Funds will issue new shares at the greater of (i) the net asset value per Common Share on the payment date or (ii) 95% of the market price per Common Share on the payment date; or
	(2)	If on the payment date the net asset value of the Common Shares is greater than the market price per Common Share plus estimated brokerage commissions that would be incurred upon the purchase of Common Shares on the open market, the Plan Agent will receive the dividend or distribution in cash and will purchase Common Shares in the open market, on the New York Stock Exchange or elsewhere, for the participants’ accounts. It is possible that the market price for the Common Shares may increase before the Plan Agent has completed its purchases. Therefore, the average purchase price per share paid by the Plan Agent may exceed the market price on the payment date, resulting in the purchase of fewer shares than if the dividend or distribution had been paid in Common Shares issued by the Funds. The Plan Agent will use all dividends and distributions received in cash to purchase Common Shares in the open market on or shortly after the payment date, but in no event later than the ex-dividend date for the next distribution. Interest will not be paid on any uninvested cash payments.

You may withdraw from the Plan at any time by giving notice to the Plan Agent. If you withdraw or the Plan is terminated, you will receive a certificate for each whole share in your account under the Plan and you will receive a cash payment for any fraction of a share in your account. If you wish, the Plan Agent will sell your shares and send you the proceeds, minus brokerage commissions.

The Plan Agent maintains all shareholders’ accounts in the Plan and gives written confirmation of all transactions in the accounts, including information you may need for tax records. The Plan Agent will also furnish each person who buys Common Shares with written instructions detailing the procedures for electing not to participate in the Plan and to instead receive distributions in cash. Common Shares in your account will be held by the Plan Agent in non-certificated form. Any proxy you receive will include all Common Shares you have received under the Plan.

There is no brokerage charge for reinvestment of your dividends or distributions in Common Shares. However, all participants will pay a pro rata share of brokerage commissions incurred by the Plan Agent when it makes open market purchases.

Automatically reinvested dividends and distributions are taxed in the same manner as cash dividends and distributions.

The Funds and the Plan Agent reserve the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan; however, the Funds reserve the right to amend the Plan to include a service charge payable by the participants. Additional information about the Plan may be obtained from the Funds’ transfer agent, PFPC Inc., P.O. Box 43027, Providence, RI 02940-3027, telephone number (800) 331-1710.

	NFJ Dividend, Interest & Premium Strategy Fund
28	Nicholas-Applegate Equity & Convertible Income Fund Annual Report | 1.31.08 |

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NFJ Dividend, Interest & Premium Strategy Fund
Nicholas-Applegate Equity & Convertible Income Fund	Board of Trustees
	(unaudited)

Name, Date of Birth, Position(s) Held with Fund,
Length of Service, Other Trusteeships/Directorships
Held by Trustee; Number of Portfolios in Fund
Complex/Outside Fund Complexes Currently
Overseen by Trustee		Principal Occupation(s) During Past 5 Years:
The address of each trustee is 1345 Avenue of the Americas, New York, NY 10105
Hans W. Kertess		President, H. Kertess & Co., a financial advisory company; Formerly, Managing
Date of Birth: 7/12/39		Director, Royal Bank of Canada Capital Markets.
Chairman of the Board of Trustees since: 2007
Trustee since: 2005 - NFJ and 2007 - NIE
Term of office: Expected to stand for re-election
at 2009 annual meeting of shareholders
for NFJ and at 2008 annual meeting of
shareholders for NIE.
Trustee/Director of 29 Funds in Fund Complex;
Trustee/Director of no funds outside of Fund Complex
Paul Belica		Retired; Formerly, Director, Student Loan Finance Corp., Education Loans, Inc., Goal
Date of Birth: 9/27/21		Funding, Inc., Goal Funding II, Inc. and Surety Loan Fund, Inc.; Formerly, Manager of
Trustee since: 2005 - NFJ and 2007 - NIE		Stratigos Fund LLC, Whistler Fund LLC, Xanthus Fund LLC & Wynstone Fund LLC.
Term of Office: Expected to stand for re-election
at 2009 annual meeting of shareholders
for NFJ and at 2008 annual meeting of
shareholder for NIE
Trustee/Director of 29 funds in Fund Complex
Trustee/Director of no funds outside of Fund Complex
Robert E. Connor		Retired; Formerly, Senior Vice President, Corporate Office, Smith Barney Inc.
Date of Birth: 9/17/34
Trustee since: 2005 - NFJ and 2007 - NIE
Term of office: Expected to stand for re-election
at 2008 annual meeting of shareholders.
Trustee/Director of 29 funds in Fund Complex
Trustee/Director of no funds outside of Fund Complex
John J. Dalessandro II		Retired; Formerly, President and Director, J.J. Dalessandro II Ltd., registered
Date of Birth: 7/26/37		broker-dealer and member of the New York Stock Exchange.
Trustee since: 2005 - NFJ and 2007 - NIE
Term of office: Expected to stand for re-election
at 2010 annual meeting of shareholders.
Trustee/Director of 29 funds in Fund Complex
Trustee/Director of no funds outside of Fund complex

	NFJ Dividend, Interest & Premium Strategy Fund
| 1.31.08 |	Nicholas-Applegate Equity & Convertible Income Fund Annual Report	29

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NFJ Dividend, Interest & Premium Strategy Fund
Nicholas-Applegate Equity & Convertible Income Fund	Board of Trustees
	(unaudited) (continued)

Name, Date of Birth, Position(s) Held with Fund,
Length of Service, Other Trusteeships/Directorships
Held by Trustee; Number of Portfolios in Fund
Complex/Outside Fund Complexes Currently
Overseen by Trustee		Principal Occupation(s) During Past 5 Years:
The address of each trustee is 1345 Avenue of the Americas, New York, NY 10105
William B. Ogden, IV		Asset Management Industry Consultant; Formerly, Managing Director,
Date of Birth: 1/11/45		Investment Banking Division of Citigroup Global Markets Inc.
Trustee since: 2006 - NFJ and 2007 - NIE
Term of office: Expected to stand for election
at 2009 annual meeting of shareholders
for NFJ and at 2008 annual meeting of
shareholders for NIE.
Trustee/Director of 29 Funds in Fund Complex;
Trustee/Director of no funds outside of Fund Complex
R. Peter Sullivan III		Retired; Formerly, Managing Partner, Bear Wagner Specialists LLC,
Date of Birth: 9/4/41		specialist firm on the New York Stock Exchange.
Trustee since: 2006 - NFJ and 2007 - NIE
Term of office: Expected to stand for re-election
at 2010 annual meeting of shareholders.
Trustee/Director of 29 funds in Fund Complex
Trustee/Director of no funds outside of Fund Complex
John C. Maney †		Management Board of Allianz Global Investors Fund Management LLC;
Date of Birth: 8/3/59		Management Board and Managing Director of Allianz Global Investors of America
Trustee since 2006 - NFJ and 2007 - NIE		L.P. since January 2005 and Chief Operating Officer of Allianz Global Investors of
Term of office: Expected to stand for election		America L.P. since November 2006; Formerly, Executive Vice President and Chief
at 2008 annual meeting of shareholders		Financial Officer of Apria Healthcare Group, Inc. (1998-2001)
for NFJ and at 2009 annual meeting of
shareholder for NIE.
Trustee/Director of 65 Funds in the Fund Complex,
Trustee/Director of no Funds outside the Fund Complex

†  Mr. Maney is an “interested person” of the Funds due to his affiliation with Allianz Global Investors of America L.P. In addition to Mr. Maney’s positions set forth in the table above, he holds the following positions with affiliated persons:

Management Board, Managing Director and Chief Operating Officer of Allianz Global Investors of America L.P., Allianz Global Investors of America LLC and Allianz-Pac Life Partners LLC; Member – Board of Directors and Chief Operating Officer of Allianz Global Investors of America Holdings Inc. and Oppenheimer Group, Inc.; Managing Director and Chief Operating Officer of Allianz Global Investors NY Holdings LLC and Allianz Global Investors U.S. Equities LLC; Management Board and Managing Director of Allianz Global Investors U.S. Holding LLC; Managing Director and Chief Financial Officer of Allianz Hedge Fund Partners Holding L.P.; Managing Director of Allianz Global Investors U.S. Retail LLC; Member – Board of Directors and Managing Director of Allianz Global Investors Advertising Agency Inc.; Compensation Committee of NFJ Investment Group L.P.; Management Board of Allianz Global Investors Fund Management LLC, Nicholas-Applegate Holdings LLC and OpCap Advisors LLC; Member – Board of Directors of NFJ Management Inc. and PIMCO Global Advisors (Resources) Limited; and Executive Vice President of PIMCO Japan Ltd.

Further information about Funds’ Trustees is available in the Funds’ Statements of Additional Information, dated February 23, 2005 (for NFJ Dividend, Interest & Premium Strategy Fund) and February 22, 2007 (for Nicholas-Applegate Equity & Convertible Income Fund), which can be obtained, without charge, by calling the Funds’ shareholder servicing agent at (800) 331-1710.

	NFJ Dividend, Interest & Premium Strategy Fund
30	Nicholas-Applegate Equity & Convertible Income Fund Annual Report | 1.31.08 |

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NFJ Dividend, Interest & Premium Strategy Fund

Nicholas-Applegate Equity & Convertible Income Fund   Principal Officers

(unaudited)

Name, Date of Birth, Position(s) Held with Fund.		Principal Occupation(s) During Past 5 Years:
Brian S. Shlissel		Executive Vice President, Director of Fund Administration, Allianz Global Investors
Date of Birth: 11/14/64		Fund Management LLC; Director of 6 funds in the Fund Complex; President and Chief
President & Chief Executive Officer since: 2005 - NFJ and		Executive Officer of 35 funds in the Fund Complex; Treasurer, Principal Financial and
2007 - NIE		Accounting Officer of 37 funds in the Fund Complex and The Korea Fund, Inc.
Lawrence G. Altadonna		Senior Vice President, Allianz Global Investors Fund Management LLC; Treasurer,
Date of Birth: 3/10/66		Principal Financial and Accounting Officer of 35 funds in the Fund Complex;
Treasurer, Principal Financial and Accounting Officer		Assistant Treasurer of 37 funds in the Fund Complex and The Korea Fund, Inc.
since: 2005 - NFJ and 2007 - NIE
Thomas J. Fuccillo		Senior Vice President, Senior Fund Attorney, Allianz Global Investors of America
Date of Birth: 3/22/68		L.P., Vice President, Secretary and Chief Legal Officer, of 72 funds in the
Secretary, Vice President, and Chief Legal Officer		Fund Complex; Secretary & Chief Legal Officer of the Korea Fund, Inc.; Formerly,
since: 2005 - NFJ and 2007 - NIE		Vice President and Associate General Counsel, Neuberger Berman, LLC. (1991-2004).
Scott Whisten		Vice President, Allianz Global Investors Fund Management LLC; Assistant Treasurer
Date of Birth: 3/13/71		of 72 funds in the Fund Complex; Formerly, Accounting Manager, Prudential
Assistant Treasurer since: 2007 - NFJ and 2007 - NIE		Investments (2000-2005).
Youse Guia		Senior Vice President, Group Compliance Manager, Allianz Global Investors of
Date of Birth: 9/3/72		America L.P.; Chief Compliance Officer of 72 funds in the Fund Complex and The
Chief Compliance Officer since: 2005 - NFJ and 2007 - NIE		Korea Fund, Inc.; Formerly, Vice President, Group Compliance Manager, Allianz
		Global Investors of America L.P. (2002-2004).
William V. Healey		Executive Vice President, Chief Legal Officer – U.S. Retail, Allianz Global Investors
Date of Birth: 7/28/53		of America L.P., Executive Vice President, Chief Legal Officer and Secretary, Allianz
Assistant Secretary since: 2006 - NFJ and 2007 - NIE		Global Investors Fund Management LLC, Allianz Global Investors Distributors LLC,
		Allianz Global Investors Advertising Agency Inc. and Allianz Global Investors
		Managed Accounts LLC. Assistant Secretary of 72 funds in the Fund Complex;
		Formerly, Vice President and Associate General Counsel, Prudential Insurance
		Company of America; Executive Vice President and Chief Legal Officer, The
		Prudential Investments (1998-2005).
Richard H. Kirk		Senior Vice President, Allianz Global Investors of America L.P. (since 2004). Senior
Date of Birth: 4/06/61		Vice President, Associate General Counsel, Allianz Global Investors Distributors LLC.
Assistant Secretary since: 2006 - NFJ and 2007 - NIE		Assistant Secretary of 72 funds in the Fund Complex; Formerly, Vice President,
		Counsel, The Prudential Insurance Company of America/American Skandia (2002-2004).
Kathleen A. Chapman		Assistant Secretary of 72 funds in the Fund Complex; Manager – IIG Advisory Law,
Date of Birth: 11/11/54		Morgan Stanley (2004-2005); Paralegal, The Prudential Insurance Company of
		America; and Assistant Corporate Secretary of affiliated American Skandia companies
Assistant Secretary since: 2006 - NFJ and 2007 - NIE		(1996-2004).
Lagan Srivastava		Assistant Secretary of 72 funds in the Fund Complex and The Korea Fund, Inc.;
Date of Birth: 9/20/77		Formerly, Research Assistant, Dechert LLP (2004-2005); Research Assistant, Swidler
Assistant Secretary since: 2006 - NFJ and 2007 - NIE		Berlin Shereff Friedman LLP (2002-2004).

Officers hold office at the pleasure of the Board and until their successors are appointed and qualified or until their earlier resignation or removal.

	NFJ Dividend, Interest & Premium Strategy Fund
| 1.31.08 |	Nicholas-Applegate Equity & Convertible Income Fund Annual Report	31

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Trustees and Principal Officers
Hans W. Kertess       Trustee, Chairman of the Board of Trustees Paul Belica       Trustee Robert E. Connor       Trustee John J. Dalessandro II       Trustee John C. Maney       Trustee William B. Ogden, IV       Trustee R. Peter Sullivan III       Trustee	Brian S. Shlissel       President & Chief Executive Officer Lawrence G. Altadonna       Treasurer, Principal Financial & Accounting Officer Thomas J. Fuccillo       Vice President, Secretary & Chief Legal Officer Scott Whisten       Assistant Treasurer Youse E. Guia       Chief Compliance Officer William V. Healey       Assistant Secretary Richard H. Kirk       Assistant Secretary Kathleen A. Chapman       Assistant Secretary Lagan Srivastava       Assistant Secretary

Investment Manager
Allianz Global Investors Fund Management LLC
1345 Avenue of the Americas
New York, NY 10105
Sub-Advisers
NFJ Investment Group L.P.
2100 Ross Avenue, Suite 1840
Dallas, Texas 75201

Nicholas-Applegate Capital Management
600 West Broadway, 30th Floor
San Diego, California 92101

Oppenheimer Capital LLC
1345 Avenue of the Americas
New York, New York 10105
Custodian & Accounting Agent
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
Transfer Agent, Dividend Paying Agent and Registrar
PFPC Inc.
P.O. Box 43027
Providence, RI 02940-3027
Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP
300 Madison Avenue
New York, NY 10017
Legal Counsel
Ropes & Gray LLP
One International Place
Boston, MA 02210-2624

This report, including the financial information herein, is transmitted to the shareholders of NFJ Dividend, Interest & Premium Strategy Fund and Nicholas-Applegate Equity & Convertible Income Fund for their information. It is not a prospectus, circular or representation intended for use in the purchase of shares of the Funds or any securities mentioned in this report.

Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that from time to time the Funds may purchase shares of its common stock in the open market.

The Funds file their complete schedules of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of their fiscal year on Form N-Q. The Funds’ Form N-Qs are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington D.C. Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. The information on Form N-Q is also available on the Funds’ website at www.allianzinvestors.com/closedendfunds.

On June 15, 2007, the NFJ Dividend, Interest & Premium Strategy Fund and on February 23, 2007 the Nicholas-Applegate Equity & Convertible Income Fund submitted a CEO annual certification to the New York Stock Exchange (“NYSE”) on which the Fund’s principal executive officer certified that he was not aware, as of the date, of any violation by the Fund of the NYSE’s Corporate Governance listing standards. In addition, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and related SEC rules, the Fund’s principal executive and principal financial officer made quarterly certifications, included in filings with the SEC on Forms N-CSR and N-Q relating to, among other things, the Fund’s disclosure controls and procedures and internal control over financial reporting, as applicable.

Information on the Funds is available at www.allianzinvestors.com/closedendfunds or by calling the Funds’ shareholder servicing agent at (800) 331-1710.

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ITEM 2. CODE OF ETHICS
	(a)		As of the end of the period covered by this report, the registrant has adopted a code of ethics (the “Section 406 Standards for Investment Companies — Ethical Standards for Principal Executive and Financial Officers”) that applies to the registrant’s Principal Executive Officer and Principal Financial Officer; the registrant’s Principal Financial Officer also serves as the Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-331-1710. The code of ethics are included as an Exhibit 99.CODEETH hereto.
	(b)		During the period covered by this report, there were not any amendments to a provision of the code of ethics adopted in 2(a) above.
	(c)		During the period covered by this report, there were not any waivers or implicit waivers to a provision of the code of ethics adopted in 2(a) above.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The registrant’s Board has determined that Mr. Paul Belica, a member of the Board’s Audit Oversight Committee is an “audit committee financial expert,” and that he is “independent,” for purposes of this Item.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
	a)		Audit fees. The aggregate fees billed for the fiscal year (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the 2008 Reporting Period was $50,000. (January 31, 2008 was the Registrant’s initial fiscal year).
	b)		Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the principal accountant that are reasonably related to the performance of the audit registrant’s financial statements and are not reported under paragraph (e) of this Item was none in 2008. (January 31, 2008 was the Registrant’s initial fiscal year).
	c)		Tax Fees. The aggregate fees billed in the Reporting Period for professional services rendered by the Auditor for tax compliance,

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			tax service and tax planning (“Tax Services”) was $13,700 in 2008. (January 31, 2008 was the Registrant’s initial fiscal year). These services consisted of review or preparation of U.S. federal, state, local and excise tax returns.
	d)		All Other Fees. There were no other fees billed in the Reporting Period for products and services provided by the Auditor to the Registrant.
	e)		1. Audit Committee Pre-Approval Policies and Procedures. The Registrant’s Audit Committee has established policies and procedures for pre-approval of all audit and permissible non-audit services by the Auditor for the Registrant, as well as the Auditor’s engagements related directly to the operations and financial reporting of the Registrant. The Registrant’s policy is stated below.
			Nicholas-Applegate Equity & Convertible Income Fund (The “Fund”)

AUDIT OVERSIGHT COMMITTEE POLICY FOR PRE-APPROVAL OF SERVICES PROVIDED BY THE INDEPENDENT ACCOUNTANTS

The Funds’ Audit Oversight Committee (“Committee”) is charged with the oversight of the Funds’ financial reporting policies and practices and their internal controls. As part of this responsibility, the Committee must pre-approve any independent accounting firm’s engagement to render audit and/or permissible non-audit services, as required by law. In evaluating a proposed engagement by the independent accountants, the Committee will assess the effect that the engagement might reasonably be expected to have on the accountant’s independence. The Committee’s evaluation will be based on:

a review of the nature of the professional services expected to provided,

the fees to be charged in connection with the services expected to be provided,

a review of the safeguards put into place by the accounting firm to safeguard independence, and

periodic meetings with the accounting firm.

POLICY FOR AUDIT AND NON-AUDIT SERVICES TO BE PROVIDED TO THE FUNDS

On an annual basis, the Funds’ Committee will review and pre-approve the scope of the audits of the Funds and proposed audit fees and permitted non-audit (including audit-related) services that may be performed by the Funds’ independent accountants. At least annually, the Committee will receive a report of all audit and non-audit services that were rendered in the previous calendar year pursuant to this Policy. In addition to the Committee’s

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pre-approval of services pursuant to this Policy, the engagement of the independent accounting firm for any permitted non-audit service provided to the Funds will also require the separate written pre-approval of the President of the Funds, who will confirm, independently, that the accounting firm’s engagement will not adversely affect the firm’s independence. All non-audit services performed by the independent accounting firm will be disclosed, as required, in filings with the Securities and Exchange Commission.

AUDIT SERVICES

The categories of audit services and related fees to be reviewed and pre-approved annually by the Committee are:

Annual Fund financial statement audits
Seed audits (related to new product filings, as required)
SEC and regulatory filings and consents
Semiannual financial statement reviews

AUDIT-RELATED SERVICES

The following categories of audit-related services are considered to be consistent with the role of the Fund’s independent accountants and services falling under one of these categories will be pre-approved by the Committee on an annual basis if the Committee deems those services to be consistent with the accounting firm’s independence:

Accounting consultations
Fund merger support services

Agreed upon procedure reports (inclusive of quarterly review of Basic Maintenance testing associated with issuance of Preferred Shares and semiannual
report review)

Other attestation reports
Comfort letters
Other internal control reports

Individual audit-related services that fall within one of these categories and are not presented to the Committee as part of the annual pre-approval process described above, may be pre-approved, if deemed consistent with the accounting firm’s independence, by the Committee Chair (or any other Committee member who is a disinterested trustee under the Investment Company Act to whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $150,000. Any such pre-approval shall be reported to the full Committee at its next regularly scheduled meeting.

TAX SERVICES

The following categories of tax services are considered to be consistent with the role of the Funds’ independent accountants and services falling under one of these categories will be pre-approved by the Committee on an annual basis if the Committee deems those services to be consistent with the accounting firm’s independence:

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Tax compliance services related to the filing or amendment of the following:

Federal, state and local income tax compliance; and, sales and use tax compliance
Timely RIC qualification reviews
Tax distribution analysis and planning
Tax authority examination services
Tax appeals support services
Accounting methods studies
Fund merger support service
Other tax consulting services and related projects

Individual tax services that fall within one of these categories and are not presented to the Committee as part of the annual pre-approval process described above, may be pre-approved, if deemed consistent with the accounting firm’s independence, by the Committee Chairman (or any other Committee member who is a disinterested trustee under the Investment Company Act to whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $150,000. Any such pre-approval shall be reported to the full Committee at its next regularly scheduled meeting.

PROSCRIBED SERVICES

The Funds’ independent accountants will not render services in the following categories of non-audit services:

Bookkeeping or other services related to the accounting records or financial statements of the Funds
Financial information systems design and implementation
Appraisal or valuation services, fairness opinions, or contribution-in-kind reports
Actuarial services
Internal audit outsourcing services
Management functions or human resources
Broker or dealer, investment adviser or investment banking services
Legal services and expert services unrelated to the audit
Any other service that the Public Company Accounting Oversight Board determines, by regulation, is impermissible

PRE-APPROVAL OF NON-AUDIT SERVICES PROVIDED TO OTHER ENTITIES WITHIN THE FUND COMPLEX

The Committee will pre-approve annually any permitted non-audit services to be provided to Allianz Global Investors Fund Management LLC (Formerly, PA Fund Management LLC) or any other investment manager to the Funds (but not including any sub-adviser whose role is primarily portfolio management and is sub-contracted by the investment manager) (the “Investment Manager”) and any entity

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controlling, controlled by, or under common control with the Investment Manager that provides ongoing services to the Funds (including affiliated sub-advisers to the Funds), provided, in each case, that the engagement relates directly to the operations and financial reporting of the Funds (such entities, including the Investment Manager, shall be referred to herein as the “Accounting Affiliates”). Individual projects that are not presented to the Committee as part of the annual pre-approval process, may be pre-approved, if deemed consistent with the accounting firm’s independence, by the Committee Chairman (or any other Committee member who is a disinterested trustee under the Investment Company Act to whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $150,000. Any such pre-approval shall be reported to the full Committee at its next regularly scheduled meeting.

Although the Committee will not pre-approve all services provided to the Investment Manager and its affiliates, the Committee will receive an annual report from the Funds’ independent accounting firm showing the aggregate fees for all services provided to the Investment Manager and its affiliates.

DE MINIMUS EXCEPTION TO REQUIREMENT OF PRE-APPROVAL OF NON-AUDIT SERVICES

With respect to the provision of permitted non-audit services to a Fund or Accounting Affiliates, the pre-approval requirement is waived if:

	(1)		The aggregate amount of all such permitted non-audit services provided constitutes no more than (i) with respect to such services provided to the Fund, five percent (5%) of the total amount of revenues paid by the Fund to its independent accountant during the fiscal year in which the services are provided, and (ii) with respect to such services provided to Accounting Affiliates, five percent (5%) of the total amount of revenues paid to the Fund’s independent accountant by the Fund and the Accounting Affiliates during the fiscal year in which the services are provided;
	(2)		Such services were not recognized by the Fund at the time of the engagement for such services to be non-audit services; and
	(3)		Such services are promptly brought to the attention of the Committee and approved prior to the completion of the audit by the Committee or by the Committee Chairman (or any other Committee member who is a disinterested trustee under the Investment Company Act to whom this Committee Chairman or other delegate shall be reported to the full Committee at its next regularly scheduled meeting.
			e) 2. No services were approved pursuant to the procedures contained in paragraph (C) (7) (i) (C) of Rule 2-01 of Registration S-X.

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			f) Not applicable
			g) Non-audit fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant, and rendered to the Adviser, for the 2007 Reporting Period was $710,892. (January 31, 2008 was the Registrant’s initial fiscal year).
			h) Auditor Independence. The Registrant’s Audit Oversight Committee has considered whether the provision of non-audit services that were rendered to the Adviser which were not pre-approved is compatible with maintaining the Auditor’s independence.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANT

The Fund has a separately designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934. The audit committee of the Fund is comprised of Robert E. Connor, Paul Belica, John J. Dalessandro II, Hans W. Kertess, R. Peter Sullivan III and William B. Ogden, IV.

ITEM 6. SCHEDULE OF INVESTMENTS Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this form.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Nicholas-Applegate Equity & Convertible Income Fund (NIE)
(the “Trust”)

PROXY VOTING POLICY

1.	It is the policy of the Trust that proxies should be voted in the interest of its shareholders, as determined by those who are in the best position to make this determination. The Trust believes that the firms and/or persons purchasing and selling securities for the Trust and analyzing the performance of the Trust’s securities are in the best position and have the information necessary to vote proxies in the best interests of the Trust and its shareholders, including in situations where conflicts of interest may arise between the interests of shareholders, on one hand, and the interests of the investment adviser, a sub-adviser and/or any other affiliated person of the Trust, on the other. Accordingly, the Trust’s policy shall be to delegate proxy voting responsibility to those entities with portfolio management responsibility for the Trust.
2.	The Trust delegates the responsibility for voting proxies to Allianz Global Investors Fund Management LLC (“AGIFM”), which will in turn delegate such responsibility to the sub-adviser of the Trust. AGIFM’s Proxy Voting Policy Summary is attached as Appendix A hereto. Summary of the detailed proxy voting policies of the Trust’s current sub-adviser is set forth in Appendix B attached hereto. Such summaries may be revised from time to time to reflect changes to the sub-advisers’ detailed proxy voting policies.
3.	The party voting the proxies (i.e., the sub-adviser or portfolio manager) shall vote such proxies in accordance with such party’s proxy voting policies and, to the extent consistent with such policies, may rely on information and/or recommendations supplied by others.
4.	AGIFM and the sub-adviser of the Trust with proxy voting authority shall deliver a copy of its respective proxy voting policies and any material amendments thereto to the applicable Board of the Trust promptly after the adoption or amendment of any such policies.
5.	The party voting the proxy shall: (i) maintain such records and provide such voting information as is required for the Trusts’ regulatory filings including, without limitation, Form N-PX and the required disclosure of policy called for by Item 18 of Form N-2 and Item 7 of Form N-CSR; and (ii) shall provide such additional information as may be requested, from time to time, by the Board or the Trusts’ Chief Compliance Officer.
6.	This Proxy Voting Policy Statement (including Appendix B), the Proxy Voting Policy Summary of AGIFM and summary of the detailed proxy voting policy of the sub-adviser of a Trust with proxy voting authority, shall be made available (i) without charge, upon request, by calling 1- 800-426-0107 and (ii) on the Trusts’ website at www.allianzinvestors.com. In addition, to the extent required by applicable law or determined by the Trusts’ Chief Compliance Officer or Board of Trustees, the Proxy Voting Policy Summary of AGIFM and summaries of the detailed proxy voting policies of each sub-adviser with proxy voting authority shall also be included in the Trusts’ Registration Statements or Form N-CSR filings.

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Appendix A

ALLIANZ GLOBAL INVESTORS FUND MANAGEMENT LLC (“AGIFM”)

1.	It is the policy of AGIFM that proxies should be voted in the interest of the shareholders of the applicable fund, as determined by those who are in the best position to make this determination. AGIFM believes that the firms and/or persons purchasing and selling securities for the funds and analyzing the performance of the funds’ securities are in the best position and have the information necessary to vote proxies in the best interests of the funds and their shareholders, including in situations where conflicts of interest may arise between the interests of shareholders, on one hand, and the interests of the investment adviser, a sub-adviser and/or any other affiliated person of the fund, on the other. Accordingly, AGIFM’s policy shall be to delegate proxy voting responsibility to those entities with portfolio management responsibility for the funds.
2.	AGIFM, for each fund which it acts as an investment adviser, delegates the responsibility for voting proxies to the sub-adviser for the respective fund, subject to the terms hereof.
3.	The party voting the proxies (e.g., the sub-adviser) shall vote such proxies in accordance with such party’s proxy voting policies and, to the extent consistent with such policies, may rely on information and/or recommendations supplied by others.
4.	AGIFM and each sub-adviser of a fund shall deliver a copy of its respective proxy voting policies and any material amendments thereto to the board of the relevant fund promptly after the adoption or amendment of any such policies.
5.	The party voting the proxy shall: (i) maintain such records and provide such voting information as is required for such funds’ regulatory filings including, without limitation, Form N-PX and the required disclosure of policy called for by Item 18 of Form N-2 and Item 7 of Form N-CSR; and (ii) shall provide such additional information as may be requested, from time to time, by such funds’ respective boards or chief compliance officers.
6.	This Proxy Voting Policy Summary and summaries of the proxy voting policies for each sub-adviser of a fund advised by AGIFM shall be available (i) without charge, upon request, by calling 1-800-426-0107 and (ii) at www.allianzinvestors.com. In addition, to the extent required by applicable law or determined by the relevant fund’s board of directors/trustees or chief compliance officer, this Proxy Voting Policy Summary and summaries of the detailed proxy voting policies of each sub-adviser and each other entity with proxy voting authority for a fund advised by AGIFM shall also be included in the Registration Statement or Form N-CSR filings for the relevant fund.

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Appendix B

Nicholas-Applegate Capital Management LLC ("NACM")

Description of Proxy Voting Policy and Procedures

Nicholas-Applegate Capital Management takes seriously the responsibility of voting proxies on behalf of our clients. Our policies and procedures are designed to meet all applicable fiduciary standards and to protect the rights and enhance the economic welfare of those to whom we owe a fiduciary duty.

A Proxy Committee, including executive, investment, sales, marketing, compliance and operations personnel, is responsible for establishing our policies and procedures. The Committee reviews these policies and procedures on a regular basis and makes such changes as it believes are necessary. Our guidelines and voting actions are to a large extent aligned with the voting recommendations of Glass Lewis, a third-party proxy voting service to which we subscribe.

We vote all proxies received according to our written guidelines, Glass Lewis recommendations and/or investment team input. Our guidelines address such general areas as elections of directors and auditors, corporate defenses, corporate governance, mergers and acquisitions, corporate restructuring, state of incorporation, proxy contest issues, executive compensation, employee considerations and social issue proposals.

The guidelines contained herein reflect our normal voting position on certain issues, and may not apply in every situation. The guidelines are intended to generally cover both U.S. and international proxy voting, although due to country differences and requirements, international proxy voting may differ depending on individual facts and circumstances. Even when our guidelines specify how we normally vote on particular issues, we may change the vote if it is reasonably determined to be in our client’s best interest. In certain cases, we will vote a specific account outside of our policy upon client request.

To ensure that voting responsibilities are met, the Committee has established operational procedures to have client proxies reconciled against client holdings to ensure ballots are received and voted. The procedures are also intended to ensure that proxies are voted consistent with voting guidelines, that the proxy analysis is used for each issue, and all votes are recorded. Any variance from stated policy is carefully noted, including the reason for the variance. In some circumstances NACM is not notified of a ballot to vote, therefore resulting in a non-voted ballot.

The proxy voting and record keeping are provided through a third party vendor, Glass Lewis. Prior to October 31, 2006 we were using Institutional Shareholder Services (ISS) for this service. We maintain proxy voting records for all applicable accounts and make these records available to clients at their request.

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ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

1) NACM

As of April 10, 2008, the following individuals constitute the team that has primary responsibility for the day-to-day implementation of the Nicholas-Applegate Equity & Convertible Income Fund (NIE), with Mr. Forsyth serving as head of the team:

Douglas G. Forsyth, CFA
Managing Director, Portfolio Manager
Doug Forsyth oversees Nicholas-Applegate's Income and Growth Strategies portfolio management and research teams and is a member of the firm’s Executive Committee. Prior to joining Nicholas-Applegate in 1994, Doug was a securities analyst at AEGON USA, where he was responsible for financial and strategic analysis of high yield securities. Doug was previously a research assistant at The University of Iowa, where he earned his B.B.A. in finance. He has sixteen years of investment industry experience.

Horacio A. Valeiras, CFA
Managing Director
Nicholas-Applegate Capital Management
As a managing director and the chief investment officer of Nicholas-Applegate, Horacio Valeiras is responsible for overseeing all investment and trading functions within the firm. He is also the portfolio manager for the International Growth portfolios and a member of the Executive Committee. Prior to joining Nicholas-Applegate in 2002, he was a managing director of Morgan Stanley Investment Management, London, responsible for developing and overseeing their Global Core Equity and European tactical asset allocation programs. Horacio was previously head of International Equity and asset allocation programs with Philadelphia-based Miller Anderson & Sherrerd. He started in the investment management industry with Credit Suisse First Boston, where he became the director and chief international investment strategist based in their London office. Horacio serves on the Board of Directors of The Bishop’s School and the Virginia Tech Foundation. He earned his M.B.A. with an emphasis on finance from the University of California, Berkeley and his master’s degree from Massachusetts Institute of Technology, where he became an instructor in their graduate school program. He earned a B.S. in chemical engineering from Virginia Tech. He has twenty years of investment management experience.

2) NACM

The following summarizes information regarding each of the accounts, excluding each Fund, as applicable, that were managed by portfolio managers. The information is as of January 31, 2008, and includes amounts managed by a team, committee, or other group that includes the portfolio manager.

			Other RICs				Other Accounts				Other Pooled
	PM		#		AUM($million)		#		AUM($million)		#		AUM($million)
	Douglas G.		7		3,742.7		12		1,405.5		4		561.5	*
	Forsyth,
	CFA
	Horacio A.		28		7,224.8		89		4,672.9		16		2,120.9	**
	Valeiras

*Of these other pooled investment vehicles, two accounts totaling $458.3 million in assets pay an advisory fee that is based in part on the performance of the account.

**Of these other pooled investment vehicles, two accounts totaling $322.4 million in assets pay an advisory fee that is based in part on the performance of the account.

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Like other investment professionals with multiple clients, a Portfolio Manager for a Fund may face certain potential conflicts of interest in connection with managing both the Fund and other accounts at the same time. The paragraphs below describe some conflicts faced by investment professionals at most major financial firms.

The Investment Adviser has adopted compliance policies and procedures that address certain of these potential conflicts. The management of accounts with different advisory fee rates and/or fee structures, including accounts that pay advisory fees based on account performance may raise potential conflicts of interest by creating an incentive to favor higher-fee accounts. These potential conflicts may include, among others:

• The most attractive investments could be allocated to higher-fee accounts or performance fee accounts.
• The trading of higher-fee accounts could be favored as to timing and/or execution price. For example, higher-fee accounts could be permitted to sell securities earlier than other accounts when a prompt sale is desirable or to buy securities at an earlier and more opportune time.
• The investment management team could focus their time and efforts primarily on higher-fee accounts due to a personal stake in compensation.

When the Investment Adviser considers the purchase or sale of a security to be in the best interests of a Fund as well as other accounts, the Investment Adviser’s trading desk may, to the extent permitted by applicable laws and regulations, aggregate the securities to be sold or purchased. Aggregation of trades may create the potential for unfairness to a Fund or another account if one account is favored over another in allocating the securities purchased or sold—for example, by allocating a disproportionate amount of a security that is likely to increase in value to a favored account. The Investment Adviser considers many factors when allocating securities among accounts, including the account’s investment style, applicable investment restrictions, availability of securities, available cash and other current holdings. The Investment Adviser attempts to allocate investment opportunities among accounts in a fair and equitable manner. However, accounts are not assured of participating equally or at all in particular investment allocations due to such factors as noted above.

“Cross trades,” in which one Investment Adviser account sells a particular security to another account (potentially saving transaction costs for both accounts), may also pose a potential conflict of interest if, for example, one account is permitted to sell a security to another account at a higher price than an independent third party would pay. The Investment Adviser has adopted compliance procedures that provide that all cross trades are to be made at an independent current market price, as required by law.

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Another potential conflict of interest may arise from the different investment objectives and strategies of a Fund and other accounts. For example, another account may have a shorter-term investment horizon or different investment objectives, policies or restrictions than a Fund. Depending on another account’s objectives or other factors, a Portfolio Manager may give advice and make decisions that may differ from advice given, or the timing or nature of decisions made, with respect to a Fund. In addition, investment decisions are subject to suitability for the particular account involved. Thus, a particular security may not be bought or sold for certain accounts even though it was bought or sold for other accounts at the same time. More rarely, a particular security may be bought for one or more accounts managed by a Portfolio Manager when one or more other accounts are selling the security (including short sales). There may be circumstances when purchases or sales of portfolio securities for one or more accounts may have an adverse effect on other accounts. The Investment Adviser maintains trading policies designed to provide portfolio managers an opportunity to minimize the effect that short sales in one portfolio may have on holdings in other portfolios.

A Portfolio Manager who is responsible for managing multiple accounts may devote unequal time and attention to the management of those accounts. As a result, the Portfolio Manager may not be able to formulate as complete a strategy or identify equally attractive investment opportunities for each of those accounts as might be the case if he or she were to devote substantially more attention to the management of a single fund. The effects of this potential conflict may be more pronounced where funds and/or accounts overseen by a particular Portfolio Manager have different investment strategies.

A Fund’s Portfolio Manager(s) may be able to select or influence the selection of the broker/dealers that are used to execute securities transactions for the Fund. In addition to executing trades, some brokers and dealers provide the Investment Adviser with brokerage and research services (as those terms are defined in Section 28(e) of the Securities Exchange Act of 1934), which may result in the payment of higher brokerage fees than might have otherwise be available. These services may be more beneficial to certain funds or accounts than to others. In order to be assured of continuing to receive services considered of value to its clients, the Investment Adviser has adopted a brokerage allocation policy embodying the concepts of Section 28(e) of the Securities Exchange Act of 1934. The Investment Adviser allocates the payment of brokerage commissions is subject to the requirement that the Portfolio Manager determine in good faith that the commissions are reasonable in relation to the value of the brokerage and research services provided to the Fund.

A Fund’s Portfolio Manager(s) may also face other potential conflicts of interest in managing a Fund, and the description above is not a complete description of every conflict that could be deemed to exist in managing both the Funds and other accounts. In addition, a Fund’s Portfolio Manager may also manage other accounts (including their personal assets or the assets of family members) in their personal capacity. The Investment Adviser’s investment personnel, including each Fund’s Portfolio Manager, are subject to restrictions on engaging in personal securities transactions pursuant to the Investment Adviser’s Codes of Ethics, which contain provisions and requirements designed to identify and address conflicts of interest between personal investment activities and the interests of the Funds.

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a) 3)

As of January 31, 2008 the following explains the compensation structure of each individual (as listed in the Prospectus) that shares primary responsibility for day-to-day portfolio management of the Fund (for the purposes of this section, “Portfolio Managers”):

Nicholas-Applegate believes that competitive compensation is essential to retaining top industry talent. With that in mind, the firm continually reevaluates its compensation policies against industry benchmarks. Its goal is to offer portfolio managers and analysts compensation and benefits in the top quartile for comparable experience, as measured by industry benchmarks surveyed by McLagan and ECS (Watson Wyatt Data Services).

Nicholas-Applegate’s compensation policy features both short-term and long-term components. The firm offers competitive base salaries and bonuses, profit-sharing and generous retirement plans. Investment professionals’ annual compensation is directly affected by the performance of their portfolios, their performance as individuals and the success of the firm. Typically, an investment professional’s compensation is comprised of a base salary and a bonus.

Investment professionals are awarded bonuses based primarily on product performance. A 360-degree qualitative review is also considered. As part of the 360-degree review, analysts and portfolio managers are reviewed by the portfolio manager who is responsible for final investment decisions for their strategy and other portfolio managers to whose portfolios they contribute. Decision making portfolio managers are reviewed by the Chief Investment Officer, who evaluates performance both quantitatively versus benchmarks and peer universes, as well as qualitatively.

Compensation and Account Performance

Approximately 75% of a portfolio manager’s bonus is based on one- (30% weight), three- (60% weight), and five-year (10% weight) annualized performance of client accounts. Relative performance to the benchmark is approximately half of the calculation and the product’s peer ranking in institutional consultant universes determines the other half. The remaining 25% of the bonus is based on a qualitative review and firm profitability. In the qualitative review, team members are evaluated based on the consistency of their implementation of the investment process. Portfolio managers responsible for final investment decisions evaluate the members of their teams. The Chief Investment Officer evaluates the decision making portfolio managers.

Profit-Sharing

Investment teams participate in a profit-sharing plan which provides the opportunity for additional compensation. Each team receives a pool which is based on the pre-tax profit of their product(s). All team members are eligible to participate in the pool. Allocations are decided by the Chief Investment Officer and the portfolio managers responsible for final investment decisions of the teams. The share of pre-tax profit increases with increasing profitability. This structure, together with the bonus based on investment performance, fully aligns the team with client interests.

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Long-Term Cash Bonus Plan

A Long-Term Cash Bonus Plan provides long-term incentives and rewards to certain key staff and executives of Nicholas-Applegate and the other Allianz Global Investors companies to promote long-term growth and profitability. The Plan provides awards that are based on Nicholas-Applegate’s operating earnings growth. The plan provides a link between longer term company performance and participant pay, further motivating participants to make a long-term commitment to the company’s success.

Equity Ownership

In September 2006, Allianz SE approved an equity ownership plan for key employees of Nicholas-Applegate. The plan was implemented as of January 31, 2007. Nicholas-Applegate believes this plan is important in retaining and recruiting key investment professionals, as well as providing ongoing incentives for Nicholas-Applegate employees.

NACM

The following information is provided as of January 31, 2008.

		PM Ownership
Douglas G. Forsyth		Over $100,000
Horacio A. Valeiras		None

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ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED COMPANIES

						Total Number		Maximum Number of
						Of Shares Purchased		Shares That May Yet Be
		Total Number		Average		As Part Of Publicly		Purchased Under The
		Of Shares		Price Paid		Announced Plans Or		Plans
Period		Purchased		Per Share		Programs		Or Programs
February 2007		N/A		N/A		N/A		N/A
March 2007		N/A		N/A		N/A		N/A
April 2007		N/A		N/A		N/A		N/A
May 2007		N/A		N/A		N/A		N/A
June 2007		N/A		N/A		N/A		N/A
July 2007		N/A		N/A		N/A		N/A
August 2008		N/A		N/A		N/A		N/A
September 2007		N/A		N/A		N/A		N/A
October 2007		N/A		N/A		N/A		N/A
November 2007		N/A		N/A		N/A		N/A
December 2007		N/A		N/A		N/A		N/A
January 2008		N/A		N/A		N/A		N/A

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There have been no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board of Trustees since the Fund last provided disclosure in response to this item.

ITEM 11. 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 Act (17 CFR 270.30a -3(c))), 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 over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a -3(d))) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants control over financial reporting.

ITEM 12. EXHIBITS

(a) (1) Exhibit 99.CODE ETH - Code of Ethics

(a) (2) Exhibit 99 Cert. - Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

(b) Exhibit 99.906 Cert. - Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

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Signature

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 Equity &

Convertible Income Fund

By /s/ Brian S. Shlissel

President and Chief Executive Officer

Date April 10, 2008

By /s/ Lawrence G. Altadonna

Treasurer, Principal Financial & Accounting Officer

Date April 10, 2008

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 dates indicated.

By /s/ Brian S. Shlissel

President and Chief Executive Officer

Date April 10, 2008

By /s/ Lawrence G. Altadonna

Treasurer, Principal Financial & Accounting Officer

Date April 10, 2008

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