| OMB
APPROVAL OMB Number: 3235-0578 Expires: April 30, 2010 Estimated average burden hours per response: 10.5 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act File Number: 811-21417
Registrant Name: NFJ DIVIDEND, INTEREST & PREMIUM STRATEGY FUND
Address of Principal Executive Offices: 1345 Avenue of the Americas New York, New York 10105
Name and Address of Agent for Service: Lawrence G. Altadonna – 1345 Avenue of the Americas New York, New York 10105
Registrant’s telephone number, including area code: 212-739-3371
Date of Fiscal Year End: January 31, 2010
Date of Reporting Period: April 30, 2009
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
|
Shares |
|||
|
(000) |
Value* |
||
|
COMMON STOCK-71.4% |
|||
| Aerospace/Defense-2.6% | |||
| 852 | Boeing Co. (a) | $34,126,605 | |
| Auto Manufacturers-0.6% | |||
| 1,278 | Ford Motor Co. (f) | 7,644,001 | |
| Beverages-0.6% | |||
| 186 | Coca-Cola Co. | 7,994,213 | |
| Commercial Banks-1.9% | |||
| 435 | PNC Financial Services Group, Inc. | 17,269,500 | |
| 400 | Wells Fargo & Co. | 8,004,000 | |
| 25,273,500 | |||
| Commercial Services & Supplies-1.6% | |||
| 500 | R.R. Donnelley & Sons Co. (a) | 5,825,000 | |
| 573 | Waste Management, Inc. | 15,271,242 | |
| 21,096,242 | |||
| Communications Equipment-0.8% | |||
| 350 | Harris Corp. | 10,703,000 | |
| Diversified Financial Services-1.8% | |||
| 735 | JP Morgan Chase & Co. (a) | 24,287,571 | |
| Diversified Telecommunication Equipment-0.6% | |||
| 210 | Embarq Corp. (a) | 7,666,632 | |
| Diversified Telecommunication Services-4.8% | |||
| 350 | AT&T, Inc. (a) | 8,967,000 | |
| 450 | Verizon Communications, Inc. (a) | 13,653,000 | |
| 5,000 | Windstream Corp. (a) | 41,500,000 | |
| 64,120,000 | |||
| Electric Utilities-1.7% | |||
| 204 | Edison International (a) | 5,816,040 | |
| 152 | Entergy Corp. | 9,829,106 | |
| 418 | NRG Energy, Inc. | 7,514,705 | |
| 23,159,851 | |||
| Energy Equipment & Services-3.5% | |||
| 300 | Diamond Offshore Drilling, Inc. (a) | 21,723,000 | |
| 1,225 | Halliburton Co. | 24,769,500 | |
| 46,492,500 | |||
| Food & Drug Retailing-1.0% | |||
| 843 | SUPERVALUE, Inc. | 13,779,780 | |
| Food Products-1.1% | |||
| 633 | Kraft Foods, Inc.—Cl. A | 14,821,560 | |
| Healthcare Equipment & Supplies-1.1% | |||
| 447 | Medtronics, Inc. | 14,297,600 | |
| Healthcare Providers & Services-1.0% | |||
| 385 | Cardinal Health, Inc. (a) | 13,019,287 | |
| Household Durables-2.6% | |||
| 400 | Black & Decker Corp. (a) | 16,120,000 | |
| 400 | Whirlpool Corp. | 18,064,000 | |
| 34,184,000 | |||
| Household Products-1.3% | |||
| 350 | Kimberly-Clark Corp. | 17,199,000 | |
| Industrial Conglomerates-2.7% | |||
| 300 | 3M Co. | 17,280,000 | |
| 1,439 | General Electric Co. | 18,202,300 | |
| 35,482,300 | |||
| Insurance-5.1% | |||
| 700 | Allstate Corp. (a) | 16,331,000 | |
| 1,303 | Lincoln National Corp. (a) | 14,641,224 | |
| 280 | MetLife, Inc. | 8,328,840 | |
| 213 | Platinum Underwriters Holdings Ltd. | 6,134,771 | |
| 550 | Travelers Cos., Inc. | 22,627,000 | |
| 19 | XL Capital Ltd.—Cl. A | 182,877 | |
| 68,245,712 | |||
| Leisure Equipment & Products-1.6% | |||
| 1,400 | Mattel, Inc. (a) | 20,944,000 | |
| Machinery-1.1% | |||
| 400 | Caterpillar, Inc. (a) | 14,232,000 | |
|
Shares |
|||||
|
(000) |
Value* |
||||
| Media-1.0% | |||||
| 1,906 | CBS Corp.—Cl. B | $13,415,424 | |||
| Multi-Utilities-1.2% | |||||
| 683 | Ameren Corp. (a) | 15,713,452 | |||
| Office Electronics-1.0% | |||||
| 2,300 | Xerox Corp. | 14,053,000 | |||
| Oil, Gas & Consumable Fuels-13.3% | |||||
| 300 | Chevron Corp. (a) | 19,830,000 | |||
| 525 | ConocoPhillips (a) | 21,525,000 | |||
| 535 | EnCana Corp. (a) | 24,470,123 | |||
| 900 | Marathon Oil Corp. (a) | 26,730,000 | |||
| 429 | Occidental Petroleum Corp. | 24,170,926 | |||
| 550 | Royal Dutch Shell PLC, ADR | 25,124,000 | |||
| 500 | Total SA, ADR | 24,860,000 | |||
| 500 | Valero Energy Corp. | 9,920,000 | |||
| 176,630,049 | |||||
| Pharmaceuticals-5.2% | |||||
| 1,180 | GlaxoSmithKline PLC, ADR (a) | 36,299,876 | |||
| 2,500 | Pfizer, Inc. (a) | 33,400,000 | |||
| 69,699,876 | |||||
| Real Estate (REIT)-1.3% | |||||
| 1,200 | Annaly Capital Management, Inc. | 16,884,000 | |||
| Software-2.4% | |||||
| 1,562 | Microsoft Corp. (a) | 31,643,243 | |||
| Specialty Retail-2.2% | |||||
| 1,104 | Home Depot, Inc. (a) | 29,062,544 | |||
| Textiles, Apparel & Luxury Goods-1.1% | |||||
| 250 | VF Corp. | 14,817,500 | |||
| Thrifts & Mortgage Finance-1.1% | |||||
| 1,357 | New York Community Bancorp, Inc. | 15,353,325 | |||
| Tobacco-2.5% | |||||
| 1,014 | Altria Group, Inc. (a) | 16,558,620 | |||
| 450 | Reynolds American, Inc. (a) | 17,091,000 | |||
| 33,649,620 | |||||
| Total Common Stock (cost-$1,470,579,035) | 949,691,387 | ||||
|
CONVERTIBLE BONDS & NOTES-14.6% |
|||||
|
Principal |
|||||
|
Amount |
Credit Rating | ||||
|
(000) |
(Moody's/S&P) | ||||
| Coal-0.2% | |||||
| $ 3,075 | Peabody Energy Corp., 4.75%, 12/15/41 | Ba3/B+ | 2,298,563 | ||
| Commercial Services-1.3% | |||||
| 7,300 | Alliance Data Systems Corp., 1.75%, 8/1/13 (b) (c) | NR/NR | 5,666,625 | ||
| 9,930 | Quanta Services, Inc., 3.75%, 4/30/26 (c) | NR/NR | 11,369,850 | ||
| 17,036,475 | |||||
| Computers-0.8% | |||||
| 11,485 | Maxtor Corp., 6.80%, 4/30/10 | Ba3/NR | 11,370,150 | ||
| Electrical Components & Equipment-1.5% | |||||
| 6,780 | EnerSys, 3.375%, 6/1/38 (e) | B2/BB | 5,025,675 | ||
| 7,510 | General Cable Corp., 0.875%, 11/15/13 | B1/B+ | 6,148,812 | ||
| 14,000 | JA Solar Holdings Co., Ltd., 4.50%, 5/15/13 | NR/NR | 8,680,000 | ||
| 19,854,487 | |||||
|
Principal |
|||||
|
Amount |
Credit Rating | ||||
| (000) |
(Moody's/S&P) |
Value* |
|||
| Entertainment-0.8% | |||||
| $ 11,270 | Regal Entertainment Group, 6.25%, 3/15/11 (b) (c) | NR/NR | $10,523,362 | ||
| Healthcare-Products-0.0% | |||||
| 1,000 | China Medical Technologies, Inc., 4.00%, 8/15/13 | NR/NR | 568,750 | ||
| Hotel/Gaming-0.1% | |||||
| 1,402 | Mandalay Resort Group, 1.977%, 3/21/33 (f) (h) | Caa2//CCC | 1,513,970 | ||
| Insurance-0.4% | |||||
| 5,100 | Prudential Financial, Inc., 0.00%, 12/15/37 (d) | Baa2/A | 5,049,000 | ||
| Internet-0.3% | |||||
| 4,200 | Equinix, Inc., 2.50%, 4/15/12 | NR/B- | 3,822,000 | ||
| Machinery-Diversified-0.2% | |||||
| 2,540 | AGCO Corp., 1.25% 12/15/36 | NR/BB | 2,174,875 | ||
| Media-0.2% | |||||
| 3,765 | Liberty Media LLC, 3.125% 3/30/23 | Ba2/BB+ | 3,101,419 | ||
| Oil & Gas-1.6% | |||||
| 3,500 | Chesapeake Energy Corp., 2.50% 5/15/37 | Ba3/BB | 2,550,625 | ||
| 10,080 | Nabors Industries, Inc., 0.94%, 5/15/11 | NR/BBB+ | 9,210,600 | ||
| 11,455 | Transocean, Inc., 1.50%, 12/15/37 | Baa2/BBB+ | 9,851,300 | ||
| 21,612,525 | |||||
| Pharmaceuticals-1.2% | |||||
| 4,225 | Mylan, Inc., 1.25%, 3/15/12 | NR/B+ | 3,754,969 | ||
| 8,035 | Omnicare, Inc., 3.25%, 12/15/35 | B3/B+ | 5,544,150 | ||
| 6,320 | Watson Pharmaceuticals, Inc., 1.75%, 3/15/23 | Ba2/BB+ | 6,185,700 | ||
| 15,484,819 | |||||
| Real Estate (REIT)-2.7% | |||||
| 8,450 | Boston Properties L.P., 3.75%, 5/15/36 | NR/A- | 7,383,188 | ||
| 5,045 | Developers Diversified Realty Corp., 3.00%, 3/15/12 | NR/BB+ | 2,749,525 | ||
| 9,500 | Digital Realty Trust L.P., 4.125%, 8/15/26 (b) (c) | NR/NR | 11,423,750 | ||
| 5,000 | Health Care REIT, Inc., 4.75%, 12/1/26 | Baa2/BBB- | 4,787,500 | ||
| 11,145 | Vornado Realty Trust, 3.625%, 11/15/26 | Baa2/BBB | 10,002,637 | ||
| 36,346,600 | |||||
| Retail-0.7% | |||||
| 12,800 | Sonic Automotive, Inc., 5.25%, 5/7/09 (h) | Caa3/CCC- | 9,280,000 | ||
| Semi-conductors-0.1% | |||||
| 1,000 | Microchip Technology, Inc., 2.125%, 12/15/37 | NR/NR | 777,500 | ||
| Software-0.5% | |||||
| Lawson Software, Inc., | |||||
| 5,000 |
2.50%, 4/15/12 (b) (c) |
NR/NR | 4,125,000 | ||
| 2,500 |
2.50%, 4/15/12 |
NR/NR | 2,062,500 | ||
| 6,187,500 | |||||
| Telecommunications-2.0% | |||||
| 12,645 | Nextel Communications, Inc., 5.25%, 1/15/10 | Ba2/BB | 12,471,131 | ||
| 11,710 | NII Holdings, Inc., 3.125%, 6/15/12 | NR/NR | 8,606,850 | ||
| 6,585 | Nortel Networks Corp., 2.125%, 4/15/14 (i) | NR/NR | 1,547,475 | ||
| 4,505 | Qwest Communications International, 3.50%, 11/15/25 | B1/B+ | 4,431,794 | ||
| 27,057,250 | |||||
| Total Convertible Bonds & Notes (cost-$201,458,291) | 194,059,245 | ||||
|
Shares |
Credit Rating | ||||
|
(000) |
(Moody's/S&P) | Value* |
|||
|
CONVERTIBLE PREFERRED STOCK-9.2 % |
|||||
| Agriculture-0.7% | |||||
| Bunge Ltd., | |||||
| 96 | 4.875%, 12/31/49 | Ba1/BB | $6,636,106 | ||
| 4 | 5.125%, 12/01/10 | NR/BB | 1,930,000 | ||
| 8,566,106 | |||||
| Banks-0.5% | |||||
| 11 | Wells Fargo & Corp., 7.50%, 12/31/49, Ser. L | B2/A | 6,828,900 | ||
| Commercial Services-0.2% | |||||
| 161 | United Rentals, Inc., 6.50%, 8/1/28 | Caa1/B- | 2,215,950 | ||
| Diversified Financial Services-2.9% | |||||
| Bank of America Corp., | |||||
| 15 | 7.25%, 12/31/49, Ser. L | B3/BB- | 8,828,100 | ||
| 180 | 10.00%, 5/11/09, Ser. JNJ (Johnson & Johnson) (g) | A2/AA | 8,922,960 | ||
| 281 | Citigroup, Inc., 6.50%, 12/31/49, Ser. T | Ca/C | 8,898,560 | ||
| 60 | Eksportfinans AS, 10.00%, 6/13/09, Ser. AAPL (Apple, Inc.) (g) | Aa1/AA+ | 7,969,800 | ||
| 630 | Lehman Brothers Holdings, Inc., 6.00%, 10/12/10, Ser. GIS (General Mills, Inc.) (g) (h) (i) | NR/NR | 2,028,488 | ||
| 98 | Lehman Brothers Holdings, Inc., 28.00%, 3/6/09, Ser. RIG (Transocean, Inc.) (g) (h) (i) | NR/NR | 1,331,778 | ||
| 37,979,686 | |||||
| Electric-0.6% | |||||
| 244 | AES Trust III, 6.75%, 10/15/29 | B3/B | 8,541,059 | ||
| Hand/Machine Tools-0.8% | |||||
| 16 | Stanley Works, 5.125%, 5/17/12 (d) | A3/BBB+ | 10,469,850 | ||
| Insurance-0.3% | |||||
| 237 | XL Capital, Ltd. 10.75%, 8/15/11 | Baa1/A- | 4,100,100 | ||
| Investment Companies-0.5% | |||||
| Vale Capital Ltd. (g), | |||||
| 21 | 5.50%, 6/15/10, Ser. RIO-P (Compania Vale ADS) | NR/NR | 743,963 | ||
| 175 | 5.50%, 6/15/10, Ser. RIO (Compania Vale do Rio Doce) | NR/NR | 6,122,375 | ||
| 6,866,338 | |||||
| Metals & Mining-0.3% | |||||
| 56 | Freeport-McMoRan Copper & Gold, Inc., 6.75%, 5/1/10 | NR/BB | 3,821,481 | ||
| Oil & Gas-0.4% | |||||
| 85 | Chesapeake Energy Corp., 5.00%, 12/31/49 | NR/B | 5,351,850 | ||
| Pharmaceuticals-1.0% | |||||
| 65 | Schering-Plough Corp., 6.00%, 8/13/10 | Baa3/BBB | 13,793,972 | ||
| Real Estate (REIT)-0.2% | |||||
| 602 | FelCor Lodging Trust, Inc., 1.95%, 12/31/49, Ser. A | Caa2/CC | 2,819,232 | ||
| Telecommunications-0.8% | |||||
| 239 | Crown Castle International Corp., 6.25%, 8/15/12 | NR/NR | 10,869,723 | ||
| Total Convertible Preferred Stock (cost-$202,031,621) | 122,224,247 | ||||
|
SHORT-TERM INVESTMENT-7.5% |
|||||
Principal |
|||||
Amount |
|||||
(000) |
|||||
| Time Deposit-7.5% | |||||
| $100,405 | Societe Generale—Grand Cayman, 0.03%, 5/1/09 (cost-$100,405,257) | 100,405,257 | |||
| Total Investments, before call options written (cost-$1,974,474,204)-102.7% | 1,366,380,136 | ||||
|
Contracts |
Value* |
||
| CALL OPTIONS WRITTEN (f)-(2.1)% | |||
| American Stock Exchange Morgan Stanley Cyclical Flex Index, | |||
| 800 | strike price $425, expires 5/1/09 | $ (8,070,400) | |
| 600 | strike price $570, expires 6/12/09 | (864,000) | |
| American Stock Exchange Morgan Stanley Cyclical Index, | |||
| 750 | strike price $470, expires 5/16/09 | (4,338,750) | |
| 750 | strike price $505, expires 6/5/09 | (3,087,000) | |
| American Stock Exchange Oil Index, | |||
| 400 | strike price $910, expires 6/5/09 | (902,000) | |
| 350 | strike price $950, expires 5/29/09 | (293,300) | |
| 700 | strike price $960, expires 6/20/09 | (1,036,000) | |
| 350 | strike price $970, expires 5/16/09 | (103,250) | |
| American Stock Exchange Pharmaceutical Index, | |||
| 600 | strike price $240, expires 6/20/09 | (366,000) | |
| 600 | strike price $250, expires 6/20/09 | (150,000) | |
| iShares Dow Jones U.S. Telecommunications Sector Index | |||
| 10,000 | strike price $17, expires 5/16/09 | (600,000) | |
| 3,000 | strike price $18, expires 5/16/09 | (60,000) | |
| Philadelphia Stock Exchange KBW Bank Index, | |||
| 10,000 | strike price $38, expires 5/1/09 | - | |
| 10,000 | strike price $41, expires 5/8/09 | (110,000) | |
| Standard & Poors 500 Flex Index, | |||
| 350 | strike price $855, expires 5/1/09 | (661,850) | |
| 400 | strike price $885, expires 6/5/09 | (1,254,400) | |
| 350 | strike price $915, expires 5/29/09 | (551,250) | |
| 350 | strike price $920, expires 6/12/09 | (700,000) | |
| 350 | strike price $920, expires 6/20/09 | (708,750) | |
| Standard & Poors 500 Index, | |||
| 350 | strike price $870, expires 5/16/09 | (747,250) | |
| 350 | strike price $875, expires 5/16/09 | (659,750) | |
| 400 | strike price $885, expires 5/16/09 | (578,000) | |
| 400 | strike price $890, expires 5/16/09 | (502,000) | |
| 350 | strike price $910, expires 5/16/09 | (231,000) | |
| 350 | strike price $915, expires 6/20/09 | (712,250) | |
| 350 | strike price $930, expires 6/20/09 | (630,000) | |
| Total Call Options Written (premiums received-$14,180,828) | (27,917,200) | ||
| Total Investments, net of call options written(cost-$1,960,293,376)-100.6% | 1,338,462,936 | ||
| Other liabilities in excess of other assets – (0.6)% | (7,913,810) | ||
| Net Assets-100.0% | $1,330,549,126 | ||
Notes to Schedules 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 independent 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 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. Synthetic convertible securities are valued based on quotations obtained from unaffiliated brokers who are the principal market-makers in such securities. Such valuations are derived by the brokers from proprietary models which are generally based on readily available market information including valuations of the common stock underlying the synthetic security, and the volatility observed in the market on such common stocks. 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 Fund to value securities may differ from the value that would be realized if the securities were sold and these differences could be material. The Fund's net asset value is normally determined daily 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 only 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 $43,108,587, representing 3.24% of net assets. |
| (d) |
Variable rate security. Interest rate disclosed reflects the rate in effect on April 30, 2009. |
| (e) |
Step Bond: Coupon is a fixed rate for an initial period then resets at a specific date and rate. |
| (f) |
Non-income producing. |
| (g) |
Securities exchangeable or convertible into securities of an entity different than the issuer or structured by the issuer to provide exposure to securities of an entity different than the issuer. Such entity is identified in the parenthetical. |
| (h) |
Fair-valued—Securities with an aggregate value of $14,154,236 representing 1.06% of net assets. |
| (i) |
In default. |
Glossary:
ADR-American Depositary Receipt
NR-Not Rated
REIT-Real Estate Investment Trust
Other Investments:
Transactions in call options written for the three months ended April 30, 2009:
| Contracts | Premiums | ||||
| Options outstanding, January 31, 2009 | 28,100 | $16,215,450 | |||
| Options written | 80,850 | 25,562,675 | |||
| Options terminated in closing purchase transactions | (7,800) | (5,859,600) | |||
| Options expired | (57,900) | (21,737,697) | |||
| Options outstanding, April 30, 2009 | 43,250 | $14,180,828 | |||
Fair Value Measurements
The Fund has adopted FASB statement of Financial Accounting Standards
No. 157, "Fair Value Measurements" (“SFAS 157”). This standard clarifies the definition of fair value for financial
reporting, establishes a framework for measuring fair value and requires additional disclosure about the use of the fair value measurements. Under this standard, fair value is defined as the price that would be received to sell an asset or paid to
transfer a liability (i.e. the “exit price”) in an orderly transaction
between market participants. The three levels of the fair value hierarchy under
SFAS 157 are described below:
• Level 1 — quoted prices
in active markets for identical investments that the portfolio has the
ability to access
• Level 2 — valuations based on other significant observable inputs
(including quoted prices for similar investments, interest rates, prepayment
speeds, credit risk, etc.) or quotes from inactive exchanges
• Level 3 — valuations based on significant unobservable inputs
(including the Fund's own assumptions in determining the fair value of investments)
An investment asset or liability’s level within the fair value hierarchy is based on the lowest level input, individually or in the aggregate, that is significant to fair value measurement.
The valuation techniques used by the Fund to measure fair value during the three months ended April 30, 2009 maximized the use of observable inputs and minimized the use of unobservable inputs. The Fund utilized the following fair value techniques on Level 3 investments: multi-dimensional relational pricing model and estimating the price that would have prevailed in a liquid market for a security given information available at the time of evaluation.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in these securities.
The following is a summary of the inputs used as of April 30, 2009 in valuing the Fund's investments carried at value:
Investments
in Securities |
||||
| Valuation Inputs | Assets | Liabilities | ||
| Level 1 — Quoted Prices | $1,115,667,956 | $ (11,423,000) | ||
| Level 2 — Other Significant Observable Inputs | 236,557,944 | (16,494,200) | ||
| Level 3 — Significant Unobservable Inputs | 14,154,236 | - | ||
| Total | $1,366,380,136 | $ (27,917,200) | ||
A roll forward of fair value measurement using significant unobservable inputs (Level 3) as of April 30, 2009, were as follows:
| Investments in | ||
| Securities | ||
| Beginning balance, January 31, 2009 | $23,022,467 | |
| Net purchases (sales) and settlements | (24,948,141) | |
| Accrued discounts (premiums) | - | |
| Total realized and unrealized gain (loss) | 6,799,910 | |
| Transfers in and/or out of Level 3 | 9,280,000 | |
| Ending balance, April 30. 2009 | $14,154,236 |
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))), 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 occured 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: NFJ Dividend, Interest & Premium Strategy Fund
By /s/ Brian S. Shlissel
President & Chief Executive Officer
Date: June 19, 2009
By /s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer
Date: June 19, 2009
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: June 19, 2009
By /s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer
Date: June 19, 2009