UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
  OMB APPROVAL 
OMB Number: 3235-0578
Expires:     April 30, 2010
Estimated average burden
hours per response:    10.5

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number                                                      811-21989     

Nicholas-Applegate Equity & Convertible Income Fund
(Exact name of registrant as specified in charter)

1345 Avenue of the Americas New York, New York 10105
      (Address of principal executive offices) (Zip code)

Lawrence G. Altadonna – 1345 Avenue of the Americas New York, New York 10105
(Name and address of agent for service)

Registrant's telephone number, including area code:  212-739-3371                       

Date of fiscal year end: January 31, 2009
   
Date of reporting period:  October 31, 2008                 

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b 1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Schedule of Investments

Nicholas-Applegate Equity & Convertible Income Fund Schedule of Investments
October 31, 2008 (unaudited)

Shares        
(000)
     
Value*
COMMON STOCK-60.4%
   
              Aerospace/Defense-1.8%    
74   L-3 Communications Holdings, Inc.   $6,030,931
 
    Automotive-1.2%    
                226   Johnson Controls, Inc.                              4,005,207
 
    Beverages-5.4%    
148   Coca-Cola Co.   6,542,910
127   Molson Coors Brewing Co.—Cl. B   4,755,928
114   PepsiCo, Inc. (a)   6,499,140
        17,797,978
 
    Commercial Services-1.6%    
140   McKesson Corp.   5,150,600
 
    Computers-4.2%    
379   EMC Corp. (e)   4,459,908
67   International Business Machines Corp.   6,210,396
61   Research In Motion, Ltd. (e)   3,066,144
        13,736,448
    Cosmetics/Personal Care-2.4%    
121   Procter & Gamble Co.   7,835,156
 
    Electric-0.7%    
92   Constellation Energy Group, Inc.   2,227,320
 
    Electronics-1.3%    
149   Amphenol Corp. —Cl. A   4,268,850
 
    Healthcare Products-3.5%    
111   Baxter International, Inc. (a)   6,720,439
27   Intuitive Surgical, Inc. (e)   4,660,146
        11,380,585
    Insurance-0.8%    
87   Prudential Financial, Inc. (a)   2,610,000
 
    Internet-1.5%    
14   Google, Inc. —Cl. A (e)   5,031,040
 
    Machinery-3.5%    
137   AGCO Corp. (e)   4,321,392
101   Deere & Co.   3,890,704
108   Joy Global, Inc.   3,124,044
        11,336,140
 
    Metals & Mining-1.6%    
70   Freeport-McMoRan Copper & Gold, Inc.   2,037,000
97   Peabody Energy Corp.   3,330,215
        5,367,215
    Miscellaneous Manufacturing-0.8%    
142   Textron, Inc.   2,520,480

Nicholas-Applegate Equity & Convertible Income Fund Schedule of Investments
October 31, 2008 (unaudited)

Shares            
(000)
         
Value*
              Oil & Gas-5.6%        
69   Diamond Offshore Drilling, Inc.       $6,118,320
96   National Oilwell Varco, Inc. (e)                                 2,863,462
90   Occidental Petroleum Corp. (a)       4,987,492
81   Schlumberger Ltd.       4,204,310
            18,173,584
    Pharmaceuticals-6.6%        
137   Abbott Laboratories (a)       7,555,550
164   Gilead Sciences, Inc. (e)       7,519,400
172   Medco Health Solutions, Inc. (e)       6,542,580
            21,617,530
    Retail-3.8%        
                119   McDonald's Corp. (a)       6,876,291
139   Target Corp.       5,560,632
            12,436,923
    Semi-conductor Equipment-3.4%        
354   Intel Corp.       5,672,000
289   Texas Instruments, Inc.       5,648,928
            11,320,928
    Software-3.8%        
260   Microsoft Corp.       5,816,965
367   Oracle Corp. (e)       6,717,917
            12,534,882
    Telecommunications-6.9%        
314   Cisco Systems, Inc. (a) (e)       5,574,449
156   Harris Corp.       5,590,225
142   Qualcomm, Inc.       5,425,268
202   Verizon Communications, Inc.       5,993,340
            22,583,282
 
    Total Common Stock (cost-$329,331,716)       197,965,079
 
CONVERTIBLE PREFERRED STOCK-24.0%
       
        Credit Rating    
             (Moody's/S&P)         
    Agriculture-0.6%        
39   Bunge Ltd., 4.875%, 12/31/49   Ba1/BB   2,012,750
 
    Banking-4.0%        
    Bank of America Corp.,        
4         7.25%, 12/31/49, Ser. L   A1/A   2,995,525
68      10.00%, 5/11/09, Ser. JNJ (Johnson & Johnson) (f)   Aa2/AA   4,021,779
    Wachovia Corp.,        
134
      13.15%, 3/30/09, Ser. GE, (General Electric Co.) (f)   A1/AA-   2,510,075
92      14.10%, 4/1/09, Ser. JPM, (JP Morgan Chase & Co.) (f)   A1/AA-   3,459,623
            12,987,002
 
    Commercial Services-0.5%        
102   United Rentals, Inc., 6.50%, 8/1/28   B3/B-       1,741,650
 
    Diversified Financial Services-8.2%        
94   Citigroup, Inc., 6.50%, 12/31/49, Ser. T   A2/A   3,034,182
    Credit Suisse Group,        
174      11.00%, 3/16/09, Ser. MSFT, (Microsoft Corp.) (f)
  Aa1/AA-   4,032,614
72      11.00%, 4/25/09, Ser. KO, (Coca-Cola Corp.) (f)   Aa1/AA-   3,603,866
    Eksportfinans AS,        
102      10.00%, 3/12/09, Ser. HPQ (Hewlett Packard, Co. ) (f)   Aaa/AA+   3,971,388
28      10.00%, 6/13/09, Ser. AAPL (Apple Inc.) (f)   Aaa/AA+   4,061,087
288
      13.00%, 11/1/08, Ser. TWX, (Time Warner, Inc.) (f)   Aaa/A+   3,270,881
199   Goldman Sachs Group, Inc., 9.75%, 12/19/08, Ser. CSCO        
       (Cisco Systems, Inc.) (f)   Aa3/NR   3,931,238
    Lehman Brothers Holdings, Inc., (g) (h),        
209      6.00%, 10/12/10, Ser. GIS (General Mills, Inc.) (f)   B3/NR   673,534
33      28.00%, 3/6/09, Ser. RIG (Transocean, Inc.) (f)   B3/NR   455,285
            27,034,075

Nicholas-Applegate Equity & Convertible Income Fund Schedule of Investments
October 31, 2008 (unaudited)

Shares       Credit Rating    
(000)
           (Moody's/S&P)       
Value*
              Electric-3.3%            
                102   AES Trust III, 6.75%, 10/15/29   B3/B-   $3,667,710
82   Entergy Corp., 7.625%, 2/17/09   NR/BBB                             3,864,336
15   NRG Energy, Inc., 5.75%, 3/16/09   B2/CCC+   3,128,751
            10,660,797
    Hand/Machine Tools-1.0%        
5   Stanley Works, 6.53%, 5/17/12 (d)   A2/A   3,290,300
 
    Insurance-1.7%        
181   Metlife, Inc., 6.375%, 2/15/09   NR/BBB+   1,568,403
145   Platinum Underwriters Holdings Ltd., 6.00%, 2/15/09, Ser. A   NR/BB+   3,883,272
            5,451,675
    Investment Companies-0.5%        
62   Vale Capital Ltd., 5.50%, 6/15/10, Ser. RIO   NR/NR   1,705,844
       (Companhia Vale do Rio Doce) (f)        
 
    Oil & Gas-0.6%        
27   Chesapeake Energy Corp., 5.00%, 12/31/49   NR/B   2,071,763
 
    Pharmaceuticals-0.9%        
22   Schering-Plough Corp., 6.00%, 8/13/10   Baa3/BBB   2,975,500
 
    Real Estate (REIT)-0.5%        
207   FelCor Lodging Trust, Inc., 1.95%, 12/31/49, Ser. A   B2/CCC+   1,502,925
 
    Sovereign-1.1%        
54   Svensk Exportkredit AB, 12.50%, 12/12/08, Ser. XOM        
       (Exxon Mobil Corp.) (f)   Aa1/AA+   3,795,488
 
    Telecommunications-1.1%        
98   Crown Castle International Corp., 6.25%, 8/15/12   NR/NR   3,681,978
 
    Total Convertible Preferred Stock (cost-$130,287,163)       78,911,747
 
CONVERTIBLE BONDS & NOTES-8.6%
       
Principal            
Amount            
(000)
           
    Auto Manufacturers-0.4%        
$4,575   Ford Motor Co., 4.25%, 12/15/36   Caa1/CCC   1,292,438
 
    Commercial Services-1.4%        
4,800   Bowne & Co., Inc., 5.00%, 10/1/33   B1/B   4,686,000
 
    Computers-1.4%        
4,925   Maxtor Corp., 6.80%, 4/30/10   Ba1/NR   4,703,375
 

Nicholas-Applegate Equity & Convertible Income Fund Schedule of Investments
October 31, 2008 (unaudited)

Principal            
Amount       Credit Rating    
(000)
           (Moody's/S&P)       
Value*
    Electrical Components & Equipment-0.4%            
$4,605   JA Solar Holdings Co., Ltd., 4.50%, 5/15/13   NR/NR   $1,433,306
 
    Entertainment-1.1%        
4,300   Regal Entertainment Group, 6.25%, 3/15/11 (b) (c)   NR/NR                             3,440,000
 
    Oil & Gas-0.6%        
2,345   Transocean, Inc., 1.50%, 12/15/37   Baa2/BBB+   1,796,856
 
    Real Estate (REIT)-0.9%        
5,950   Developers Diversified Realty Corp., 3.00%, 3/15/12   NR/BBB-   3,079,125
 
              Telecommunications-2.4%        
5,910   Level 3 Communications, Inc., 6.00%, 3/15/10   Caa3/CCC   3,605,100
4,700   NII Holdings, Inc., 3.125%, 6/15/12   NR/NR   2,608,500
3,730   Nortel Networks Corp., 2.125%, 4/15/14   B3/B-   1,510,650
            7,724,250
 
    Total Convertible Bonds & Notes (cost-$43,462,795)       28,155,350
 
CORPORATE BONDS & NOTES-3.0%
       
    Apparel-0.1%        
                500   Levi Strauss., 9.75%, 1/15/15   B2/B+   352,500
 
    Computers-0.4%        
2,300   Unisys Corp., 8.00%, 10/15/12   B2/B+   1,463,375
 
    Diversified Financial Services-0.1%        
500   GMAC LLC, 6.75%, 12/1/14   Caa/B-   252,759
 
    Miscellaneous Manufacturing-0.2%        
1,000   Polypore, Inc., 8.75%, 5/15/12   B3/B-   805,000
 
    Oil & Gas-0.9%        
4,340   Dynegy Holdings, Inc., 7.75%, 6/1/19   B2/B   2,929,500
 
    Paper Products-0.2%        
1,000   Neenah Paper, Inc., 7.375%, 11/15/14   B2/B+   550,000
 
    Telecommunications-1.1%        
4,600   Millicom International Cellular S.A., 10.00%, 12/1/13, GDR   B1/BB   3,611,000
 
    Total Corporate Bonds & Notes (cost-$13,524,149)       9,964,134
 
U.S. GOVERNMENT SECURITIES-0.7%
       
2,000   United States Treasury Notes, 12.50%, 8/15/14       2,169,064
   
     (cost-$2,197,500)
       
 
SHORT-TERM INVESTMENT-2.8%        
    Time Deposit-2.8%        
9,218   Citibank—London, 0.17%, 11/3/08        
   
     (cost-$9,217,509)
      9,217,509
 
    Total Investments, before call options written (cost-$528,020,832)-99.5%       326,382,883

Nicholas-Applegate Equity & Convertible Income Fund Schedule of Investments
October 31, 2008 (unaudited)

Contracts      
Value*
CALL OPTIONS WRITTEN (e)-(0.0)%    
                960             Abbott Laboratories, strike price $60, expires 11/22/08   $(38,400)
770   Baxter International, Inc., strike price $70, expires 11/22/08   (15,400)
2,195   Cisco Systems, Inc., strike price $27, expires 11/22/08   (2,195)
845   McDonalds Corp., strike price $67.50, expires 11/22/08                                   (8,450)
630   Occidental Petroleum Corp., strike price $95, expires 11/22/08   (3,150)
800   PepsiCo, Inc., strike price $75, expires 11/22/08   (8,000)
610   Prudential Financial, Inc., strike price $85, expires 11/22/08   (21,350)
 
    Total Call Options Written (premium received-$976,636)   (96,945)
 
    Total Investments, net of call options written (cost-$527,044,196)-99.5%   326,285,938 
 
    Other assets less other liabilities -0.5%   1,638,246 
    Net Assets-100.0%   $327,924,184 

Notes to Schedule of Investments:

      *     

Portfolio securities and other financial instruments for which market quotations are readily available are stated at market value. Market value is generally determined on the basis of last reported sales prices, or if no sales are reported, based on quotes obtained from a quotation reporting system, established market makers, or pricing services.

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 procedures established by the Board of Trustees or persons acting at their discretion pursuant to procedures established by the Board of Trustees. The Fund's investments, including over-the-counter options, are valued daily using prices supplied by an independent pricing service or dealer quotations, or by using the last sale price on the exchange that is the primary market for such securities, or the last quoted mean 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 or less, or by amortizing their value on the 61st day prior to maturity, if the original term to maturity exceeded 60 days.

The prices used by the Fund to value securities may differ from the value that would be realized if the securities were sold. The Fund's net asset value is 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.
 
(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 to qualified institutional buyers.
(c)     

Private Placement. Restricted as to resale and may not have a readily available market. Securities with an aggregate market value of $3,440,000, representing 1.05% of net assets.
(d)     

Variable rate security. Interest rate disclosed reflects the rate in effect on October 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.
(g)     

Issuer in default.
(h)     

Fair-valued —Securities with an aggregate value of $1,128,819, representing 0.34% of net assets.
 

Glossary:
GDR-Global Depositary Receipt
NR-Not Rated
REIT-Real Estate Investment Trust

Nicholas-Applegate Equity & Convertible Income Fund Schedule of Investments
October 31, 2008 (unaudited)

Other Investments:

          Transactions in call options written for the nine months ended October 31, 2008:
         
   
Contracts
  
Premiums
Options outstanding, January 31, 2008   32,480    $4,595,709 
Options written   107,486    13,291,418 
Options terminated in closing purchase transactions   (26,468)   (3,449,286)
Options expired                        (105,831)                     (13,369,428)
Options exercised   (857)       (91,777)
Options outstanding, October 31, 2008   6,810    $976,636 

Fair Value Measurements—Effective February 1, 2008, the Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("FAS 157"). This standard clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of the fair value measurements. The three levels of the fair value hierarchy under FAS 157 are described below:

• Level 1— quoted prices in active markets for identical investments
• Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
• Level 3 — significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The valuation techniques used by the Fund to measure fair value during the nine months ended October 31, 2008 maximized the use of observable inputs and minimized the use of unobservable inputs.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of October 31, 2008 in valuing the Fund's investments carried at value:

   
Investments in
Valuation Inputs   Securities
Level 1 — Quoted Prices   $244,397,120
Level 2 — Other Significant Observable Inputs   80,759,999
Level 3 — Significant Unobservable Inputs                         1,128,819
Total              $326,285,938

A roll forward of fair value measurement using significant unobservable inputs (Level 3) as of October 31, 2008, were as follows:

    Investments in
   
Securities
Beginning balance, January 31, 2008               $     -
Net purchases (sales) and settlements                    -
Accrued discounts (premiums)                    -
Total realized and unrealized gain (loss)                    -
Transfers in and/or out of Level 3  
                     1,128,819
Ending balance, October 31, 2008  
$1,128,819

Item 2. Controls and Procedures

a) The registrant's President & Chief Executive Officer and Treasurer, Principal Financial & Accounting Officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a -3(c))), as are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

(b) There were no significant changes in the registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a -3(d))) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits

          (a) Exhibit 99.302 Cert. – Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant: Nicholas-Applegate Equity & Convertible Income Fund

By /s/ Brian S. Shlissel
President & Chief Executive Officer

Date: December 22, 2008

By /s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer

Date: December 22, 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 & Chief Executive Officer

Date: December 22, 2008

By /s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer

Date: December 22, 2008