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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, 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
NFJ Dividend, Interest & Premium Strategy Fund Schedule of Investments
October 31, 2008 (unaudited)
|
Shares |
|||
|
(000) |
Value* |
||
|
COMMON STOCK-71.8% |
|||
| Aerospace/Defense-1.9% | |||
| 542 | Boeing Co. (a) | $28,340,794 | |
| Chemicals-2.7% | |||
| 1,500 | Dow Chemical Co. (a) | 40,005,000 | |
| Commercial Banks-2.2% | |||
| 800 | Bank of America Corp. (a) | 19,336,000 | |
| 400 | Wells Fargo & Co. | 13,620,000 | |
| 32,956,000 | |||
| Commercial Services & Supplies-2.1% | |||
| 400 | R.R. Donnelley & Sons Co. (a) | 6,628,000 | |
| 800 | Waste Management, Inc. | 24,984,000 | |
| 31,612,000 | |||
| Computers & Peripherals-0.6% | |||
| 1,329 | Seagate Technology, Inc. | 8,997,330 | |
| Diversified Financial Services-1.4% | |||
| 500 | JP Morgan Chase & Co. (a) | 20,625,000 | |
| Diversified Telecommunication Services-6.0% | |||
| 600 | AT&T Inc. (a) | 16,062,000 | |
| 700 | Verizon Communications, Inc. (a) | 20,769,000 | |
| 6,300 | Windstream Corp. (a) | 47,313,000 | |
| 84,144,000 | |||
| Energy Equipment & Services-3.0% | |||
| 300 | Diamond Offshore Drilling, Inc. | 26,640,000 | |
| 925 | Halliburton Co. | 18,305,750 | |
| 44,945,750 | |||
| Food Products-1.3% | |||
| 700 | Kraft Foods, Inc.—Class A | 20,398,000 | |
| Household Durables-2.5% | |||
| 400 | Black & Decker Corp. (a) | 20,248,000 | |
| 400 | Whirlpool Corp. | 18,660,000 | |
| 38,908,000 | |||
| Household Products-1.4% | |||
| 350 | Kimberly-Clark Corp. | 21,451,500 | |
| Industrial Conglomerates-3.2% | |||
| 1,086 | General Electric Co. | 21,182,007 | |
| 427 | 3M Co. | 27,481,820 | |
| 48,663,827 | |||
| Insurance-4.6% | |||
| 700 | Allstate Corp. (a) | 18,473,000 | |
| 500 | Hartford Financial Services Group, Inc. | 5,160,000 | |
| 1,303 | Lincoln National Corp. (a) | 22,456,824 | |
| 550 | Travelers Cos., Inc. | 23,402,500 | |
| 69,492,324 | |||
| Leisure Equipment & Products-1.4% | |||
| 1,400 | Mattel, Inc. (a) | 21,028,000 | |
| Machinery-1.0% | |||
| 400 | Caterpillar, Inc. (a) | 15,268,000 | |
| Media-1.2% | |||
| 1,906 | CBS Corp.—Class B | 18,503,376 | |
| Metals & Mining-0.9% | |||
| 1,200 | Alcoa, Inc. | 13,812,000 | |
NFJ Dividend, Interest & Premium Strategy Fund Schedule of Investments
October 31, 2008 (unaudited)
|
Shares |
|||||
|
(000) |
Value* |
||||
| Multi-Utilities-1.5% | |||||
| 683 | Ameren Corp. (a) | $22,150,370 | |||
| Office Electronics-1.1% | |||||
| 2,127 | Xerox Corp. | 17,054,530 | |||
| Oil, Gas & Consumable Fuels-11.9% | |||||
| 300 | Chevron Corp. (a) | 22,380,000 | |||
| 417 | ConocoPhillips | 21,687,138 | |||
| 535 | EnCana Corp. | 27,241,941 | |||
| 900 | Marathon Oil Corp. (a) | 26,190,000 | |||
| 429 | Occidental Petroleum Corp. | 23,848,876 | |||
| 550 | Royal Dutch Shell PLC, ADR | 30,695,500 | |||
| 500 | Total SA, ADR | 27,720,000 | |||
| 179,763,455 | |||||
| Pharmaceuticals-8.0% | |||||
| 1,180 | GlaxoSmithKline PLC, ADR | 45,669,870 | |||
| 3,000 | Pfizer, Inc. (a) | 53,130,000 | |||
| 700 | Wyeth (a) | 22,526,000 | |||
| 121,325,870 | |||||
| Real Estate (REITS)-3.5% | |||||
| 2,200 | Annaly Capital Management, Inc. | 30,580,000 | |||
| 2,200 | Host Hotels & Resorts, Inc. | 22,748,000 | |||
| 53,328,000 | |||||
| Semi-conductors-1.6% | |||||
| 1,510 | Intel Corp. (a) | 24,160,000 | |||
| Software-1.0% | |||||
| 672 | Microsoft Corp. | 15,016,925 | |||
| Specialty Retail-1.7% | |||||
| 1,104 | Home Depot, Inc. (a) | 26,048,078 | |||
| Textiles, Apparel & Luxury Goods-0.9% | |||||
| 250 | VF Corp. | 13,775,000 | |||
| Tobacco-3.2% | |||||
| 1,000 | Altria Group, Inc. (a) | 19,190,000 | |||
| 600 | Reynolds American, Inc. (a) | 29,376,000 | |||
| 48,566,000 | |||||
| Total Common Stock (cost-$1,628,442,186) | 1,080,339,129 | ||||
|
CONVERTIBLE PREFERRED STOCK-13.9% |
|||||
| Credit Rating | |||||
| (Moody's/S&P) | |||||
| Agriculture-0.4% | |||||
| Bunge Ltd., | |||||
| 96 |
4.875%, 12/31/49 |
Ba1/BB |
4,998,156 | ||
| 4 |
5.125%, 12/01/10 |
NR/BB |
1,560,000 | ||
| 6,558,156 | |||||
| Banking-2.6% | |||||
| Bank of America Corp., | |||||
13 |
7.25%, 12/31/49, Ser. L | A1/A |
9,429,700 | ||
180 |
10.00%, 5/11/09, Ser. JNJ (Johnson & Johnson) (f) | Aa2/AA |
10,715,220 | ||
| Wachovia Corp. | |||||
4 |
7.50%, 12/31/49 | A3/A- |
2,327,500 | ||
386 |
13.15%, 3/30/09, Ser. GE (General Electric Co.) (f) | A1/AA- |
7,239,993 | ||
258 |
14.10%, 4/1/09, Ser. JPM (JP Morgan Chase & Co.) (f) | A1/AA- |
9,742,550 | ||
| 39,454,963 | |||||
NFJ Dividend, Interest & Premium Strategy Fund Schedule of Investments
October 31, 2008 (unaudited)
|
Shares |
Credit Rating |
|||
|
(000) |
(Moody's/S&P) |
Value* |
||
| Commercial Services-0.2% | ||||
| 161 | United Rentals, Inc., 6.50%, 8/1/28 |
B3/B- |
$2,739,720 | |
| Diversified Financial Services-4.0% | ||||
| 198 | Citigroup, Inc., 6.50%, 12/31/49, Ser. T |
A2/A |
6,363,085 | |
| Credit Suisse Group, | ||||
| 505 | 11.00%, 3/16/09, Ser. MSFT (Microsoft Corp.) (f) | Aa1/AA- |
11,696,537 | |
| 179 | 11.00%, 4/25/09, Ser. KO (Coca-Cola Corp.) (f) | Aa1/AA- |
8,959,706 | |
| Eksportfinans A/S, | ||||
| 297 | 10.00%, 3/12/09, Ser. HPQ (Hewlett Packard, Co. ) (f) | Aaa/AA+ | 11,569,562 | |
866 |
13.00%, 11/1/08, Ser. TWX (Time Warner, Inc.) (f) | Aaa/A+ |
9,855,300 |
|
461 |
Goldman Sachs Group, Inc., 9.75%, 12/19/08, Ser. CSCO (Cisco Systems, Inc.) (f) | Aa3/NR |
9,103,762 |
|
| 15 | Legg Mason, Inc., 7.00%, 6/30/11 |
A3/BBB- |
343,500 | |
| Lehman Brothers Holdings, Inc., (g)(h), | ||||
| 630 | 6.00%, 10/12/10, Ser. GIS (General Mills, Inc.) (f) |
B3/NR |
2,028,488 | |
| 98 | 28.00%, 3/6/09, Ser. RIG (Transocean, Inc. ) (f) |
B3/NR |
1,331,778 | |
| 61,251,718 | ||||
| Electric-1.9% | ||||
| 244 | AES Trust III, 6.75%, 10/15/29 |
B3/B- |
8,738,780 | |
| 230 | Entergy Corp., 7.625%, 2/17/09 |
NR/BBB |
10,819,200 | |
| 41 | NRG Energy, Inc., 5.75%, 3/16/09 |
B2/CCC+ |
8,491,281 | |
| 28,049,261 | ||||
| Hand/Machine Tools-0.7% | ||||
| 16 | Stanley Works, 5.125%, 5/17/12 (d) |
A2/A |
9,902,538 | |
| Insurance-0.9% | ||||
| 952 | Metlife, Inc., 6.375%, 2/15/09 |
NR/BBB+ |
8,256,007 | |
| 213 | Platinum Underwriters Holdings Ltd., 6.00%, 2/15/09, Ser. A |
NR/BB+ |
5,702,821 | |
| 50 | XL Capital, Ltd., 7.00%, 2/15/09 |
Baaa1/A- |
192,500 | |
| 14,151,328 | ||||
| Investment Companies-0.4% | ||||
| Vale Capital Ltd., | ||||
| 21 | 5.50%, 6/15/10, Ser. RIO-P (Companhia Vale ADS) (f) |
NR/NR |
587,031 | |
| 175 | 5.50%, 6/15/10, Ser. RIO (Companhia Vale do Rio Doce) (f) |
NR/NR |
4,838,750 | |
| 5,425,781 | ||||
| Metals & Mining-0.2% | ||||
| 48 | Freeport-McMoRan Copper & Gold, Inc., 6.75%, 5/1/10 |
NR/BB |
2,354,855 | |
| Oil & Gas-0.4% | ||||
| 85 | Chesapeake Energy Corp., 5.00%, 12/31/49 |
NR/B |
6,434,963 | |
| Pharmaceuticals-0.6% | ||||
| 65 | Schering-Plough Corp., 6.00%, 8/13/10 |
Baa3/BBB |
8,831,825 | |
| Real Estate (REIT)-0.3% | ||||
| 602 | FelCor Lodging Trust, Inc., 1.95%, 12/31/49, Ser. A |
B2/CCC+ |
4,367,400 | |
| Sovereign-0.7% | ||||
162 |
Svensk Exportkredit AB, 12.50%, 12/12/08, Ser. XOM (Exxon Mobil Corp.) (f) | Aa1/AA+ |
11,330,648 |
|
| Telecommunications-0.6% | ||||
| 239 | Crown Castle International Corp., 6.25%, 8/15/12 | NR/NR |
8,943,632 | |
| Total Convertible Preferred Stock (cost-$336,711,309) | 209,796,788 | |||
NFJ Dividend, Interest & Premium Strategy Fund Schedule of Investments
October 31, 2008 (unaudited)
|
Principal |
||||
|
Amount |
Credit Rating |
|||
|
(000) |
(Moody's/S&P) |
Value* |
||
| CONVERTIBLE BONDS & NOTES 7.9% | ||||
| Auto Manufacturers-0.2% | ||||
$11,760 |
Ford Motor Co., 4.25%, 12/15/36 | Caa1/CCC |
$3,322,200 |
|
| Commercial Services-0.7% | ||||
| Quanta Services, Inc., | ||||
| 9,930 | 3.75%, 4/30/26 (b)(c) |
NR/B |
9,669,337 | |
| Computers-0.7% | ||||
| 11,485 | Maxtor Corp., 6.80%, 4/30/10 |
Ba1/NR |
10,968,175 | |
| Electrical Components & Equipment-0.3% | ||||
| 750 | General Cable Corp., 0.875%, 11/15/13 |
B1/B+ |
378,750 | |
| 14,000 | JA Solar Holdings Co., Ltd., 4.50%, 5/15/13 |
NR/NR |
4,357,500 | |
| 4,736,250 | ||||
| Entertainment-0.6% | ||||
| 11,270 | Regal Entertainment Group, 6.25%, 3/15/11 (b)(c) |
NR/NR |
9,016,000 | |
| Healthcare-Products-0.0% | ||||
| 1,000 | China Medical Technologies, Inc., 4.00%, 8/15/13 |
NR/NR |
528,750 | |
| Hotel/Gaming-0.1% | ||||
| 1,402 | Mandalay Resort Group, 3.954%, 3/21/33 (d)(h) |
Ba3/BB- |
1,752,280 | |
| Insurance-0.7% | ||||
| 11,500 | Prudential Financial, Inc., 1.189%, 12/15/37 (d) |
A3/A+ |
10,479,950 | |
| Oil & Gas-0.4% | ||||
| 6,935 | Transocean, Inc., 1.50%, 12/15/37 |
Baa2/BBB+ |
5,313,944 | |
| Real Estate (REIT)-1.0% | ||||
| 5,045 | Developers Diversified Realty Corp., 3.00%, 3/15/12 |
NR/BBB- |
2,610,787 | |
| 9,500 | Digital Realty Trust L.P., 4.125%, 8/15/26 (b)(c) |
NR/NR |
10,391,100 | |
| 2,000 | Vornado Realty Trust, 3.625%, 11/15/26 |
Baa2/BBB |
1,515,000 | |
| 14,516,887 | ||||
| Retail-0.8% | ||||
| 12,800 | Sonic Automotive, Inc., 5.25%, 5/7/09 |
B2/B |
11,712,000 | |
| Software-0.2% | ||||
| 5,000 | Lawson Software, Inc., 2.50%, 4/15/12 (b)(c) |
NR/NR |
3,250,000 | |
| Telecommunications-2.2% | ||||
| 15,800 | Level 3 Communications, Inc., 6.00%, 3/15/10 |
Caa3/CCC |
9,638,000 | |
| 12,645 | Nextel Communications, Inc., 5.25%, 1/15/10 |
Baa3/BB |
10,748,250 | |
| 12,385 | NII Holdings, Inc., 3.125%, 6/15/12 |
NR/NR |
6,873,675 | |
| 13,995 | Nortel Networks Corp., 2.125%, 4/15/14 |
B3/B- |
5,667,975 | |
| 32,927,900 | ||||
| Total Convertible Bonds & Notes (cost-$162,179,761) | 118,193,673 | |||
NFJ Dividend, Interest & Premium Strategy Fund Schedule of Investments
October 31, 2008 (unaudited)
|
Principal |
|||||
|
Amount |
|||||
|
(000) |
Value* |
||||
| SHORT-TERM INVESTMENT-7.0% | |||||
| Time Deposit-7.0% | |||||
| $104,460 | BNP Paribas—Grand Cayman, 0.17%, 11/3/08 | ||||
| (cost-$104,459,615) | $104,459,615 | ||||
| Total Investments, before call options written (cost-$2,231,792,871)-100.6% | 1,512,789,205 | ||||
| CALL OPTIONS WRITTEN (e)-(0.7)% | |||||
|
Contracts |
|||||
| American Stock Exchange Morgan Stanley Cyclical Flex Index, | |||||
| 600 | strike price $610, expires 12/12/08 | (488,400 | ) | ||
| 500 | strike price $750, expires 12/5/08 | (500 | ) | ||
| American Stock Exchange Morgan Stanley Cyclical Index, | |||||
| 600 | strike price $580, expires 12/20/08 | (1,104,000 | ) | ||
| 600 | strike price $610, expires 12/20/08 | (564,000 | ) | ||
| 600 | strike price $620, expires 12/20/08 | (480,000 | ) | ||
| 400 | strike price $900, expires 11/22/08 | (32,000 | ) | ||
| American Stock Exchange Oil Flex Index, | |||||
| 400 | strike price $1100, expires 12/12/08 | (1,232,000 | ) | ||
| American Stock Exchange Oil Index, | |||||
| 400 | strike price $1100, expires 12/20/09 | (1,628,000 | ) | ||
| 400 | strike price $1210, expires 12/20/08 | (604,000 | ) | ||
| 250 | strike price $1430, expires 11/22/08 | (25,000 | ) | ||
| American Stock Exchange Pharmaceutical Index, | |||||
| 400 | strike price $300, expires 11/22/08 | (55,000 | ) | ||
| 600 | strike price $310, expires 11/22/08 | (54,000 | ) | ||
| Pharmaceutical HOLDRS, | |||||
| 5,000 | strike price $102.30, expires 11/7/08 | (3,436 | ) | ||
| Philadelphia Stock Exchange KBW Bank Flex Index, | |||||
| 5,000 | strike price $80, expires 12/5/08 | (50,000 | ) | ||
| 4,000 | strike price $100, expires 11/14/08 | - | |||
| Standard & Poors 500 Flex Index, | |||||
| 400 | strike price $1080, expires 12/12/08 | (514,400 | ) | ||
| 250 | strike price $1260, expires 11/14/08 | - | |||
| 250 | strike price $1300, expires 11/14/08 | - | |||
| Standard & Poors 500 Index, | |||||
| 400 | strike price $1030, expires 12/20/08 | (1,574,000 | ) | ||
| 400 | strike price $1035, expires 12/20/08 | (1,488,000 | ) | ||
| 400 | strike price $1105, expires 12/20/08 | (620,000 | ) | ||
| 300 | strike price $1180, expires 11/22/08 | (25,500 | ) | ||
| 300 | strike price $1245, expires 11/22/08 | (14,250 | ) | ||
| 300 | strike price $1255, expires 11/22/08 | (9,750 | ) | ||
| 300 | strike price $1260, expires 11/22/08 | (9,750 | ) | ||
| 300 | strike price $1270, expires 11/22/08 | (33,000 | ) | ||
| 300 | strike price $1275, expires 11/22/08 | (3,000 | ) | ||
| 250 | strike price $1280, expires 11/22/08 | (33,750 | ) | ||
| 300 | strike price $1285, expires 11/22/08 | (64,500 | ) | ||
| 300 | strike price $1300, expires 11/22/08 | (2,250 | ) | ||
NFJ Dividend, Interest & Premium Strategy Fund Schedule of Investments
October 31, 2008 (unaudited)
| Contracts |
Value* |
|||
| Telecommunication Basket Index, | ||||
|
5,000 |
strike price $107, expires 11/7/08 | $(42,800 | ) | |
| Total Call Options Written (premium received-$17,105,600) | (10,755,286 | ) | ||
| Total Investments, net of call options written (cost-$2,214,687,271) -99.9% | 1,502,033,919 | |||
| Other assets less other liabilities – 0.1% | 2,043,515 | |||
| Net Assets-100.0% | $1,504,077,434 | |||
| 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. 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. |
| (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 security—Securities with an aggregate value of $5,112,546, representing 0.34% of net assets. |
Glossary:
ADR-American Depositary Receipt
NR-Not Rated
REIT-Real Estate Investment Trust
NFJ Dividend, Interest & Premium Strategy 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 | 37,100 | $19,411,700 | ||
| Options written | 171,275 | 91,062,996 | ||
| Options terminated in closing purchase transactions | (33,420 | ) | (13,193,092 | ) |
| Options expired | (145,455 | ) | (80,176,004 | ) |
| Options outstanding, October 31, 2008 | 29,500 | $17,105,600 |
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 | $1,281,863,555 | |
| Level 2 — Other Significant Observable Inputs | 215,057,818 | |
| Level 3 — Significant Unobservable Inputs | 5,112,546 | |
| Total | $1,502,033,919 | |
| 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, 1/31/08 | $2,398,425 | |
| Net purchases (sales) and settlements | (419,911 | ) |
| Accrued discounts (premiums) | - | |
| Total realized and unrealized gain (loss) | (226,234 | ) |
| Transfers in and/or out of Level 3 | 3,360,266 | |
| Ending balance, 10/31/08 | $5,112,546 | |
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: NFJ Dividend, Interest & Premium Strategy 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