Allianz Fund Raises $2.47 Billion in IPO

Allianz Global Investors said Monday that its NFJ Dividend, Interest & Premium Strategy Fund raised $2.47 billion in what it called the largest-ever unleveraged closed-end fund initial public offering.

The new fund is co-managed by three of the investment firms owned by Allianz Global: NFJ Investment Group in Dallas; PEA Capital in New York; and Nicholas-Applegate Capital Management in San Diego.

The portfolio will invest for “current income and gains, with a secondary objective of long-term capital appreciation,” Allianz Global said.

The fund shares were sold at $25 apiece Wednesday. The stock closed at $25.15 on Monday on the New York Stock Exchange, under the ticker symbol NFJ. The announcement Monday gave the final details of the offering.

Unlike conventional, or open-end, mutual funds, closed-end funds are sold to investors in an IPO and thereafter trade on an exchange.

Allianz Global Investors is the investment arm of giant German insurer Allianz, which is also the parent of Newport Beach-based Pacific Investment Management, or Pimco.