AGIC Convertible & Income Fund II The fund (NCZ) is managed by Allianz Global Investors Fund Management LLC with Pacific Investment Management Company LLC serving as one of the sub-advisors. The fund has assets of about $723 million of which 51% is invested in convertible bonds and preferreds and the remainder in non-convertible high-yield bonds rated below investment grade. About 80% of its funds are invested in below investment grade securities. Of the below investment grade investments 49% are invested in securities rated below B, with 21% invested in CCC rated securities and rest invested in non-rated securities. Although the fund has a great current yield of 11.71%, it trades at a premium to its net asset value of 12.86%. The fund is leveraged at 36.24%. In a market downtrend, the fund is vulnerable to losing its high premium and perhaps going to a discount. In addition, the current near zero interest rates the fund borrows can increase, cutting into the available income and reduce the payouts. If leverage goes too high, the fund will be forced to liquidate its securities in a declining market, along with all the other funds in a similar situation.