AllianzGI NFJ Dividend, Interest & Premium Strategy Fund Announces New Option Strategy and Related Portfolio Manager Changes

Allianz Global Investors U.S. LLC (“AllianzGI U.S.” or the “Manager”), the investment manager of AllianzGI NFJ Dividend, Interest and Premium Strategy Fund (the “Fund”) (NYSE:NFJ), announced today that the Fund’s Board of Trustees approved a new Fund strategy of writing (selling) covered call options on individual stocks held in the Fund’s Equity Component (the “New Option Strategy”), which replaces the Fund’s previous strategy of writing call options on equity indexes (the “Index Option Strategy”). AllianzGI U.S. intends to implement the transition to the New Option Strategy in a prudent manner over the coming weeks. In addition, AllianzGI U.S. announced that the Dallas-based investment team, that currently manages the Fund’s Equity Component, will also manage the New Option Strategy, in place of the current New York-based team that has managed the Index Option Strategy.

The following provides disclosure describing the New Option Strategy and related risks:

Option Strategy. The Fund normally employs a strategy of writing (selling) covered call options on the stocks held in the Fund’s Equity Component (the “Option Strategy”). It is expected that the Fund ordinarily will write call options on some or all of the individual stocks held in the Equity Component, depending on market conditions and other factors, and with respect to generally 70% or less of the value of each position. As the Fund writes covered call options over more of its equity portfolio, its ability to benefit from capital appreciation of its common stock holdings in the Equity Component becomes more limited. The extent of the Fund’s use of the Option Strategy may vary from time to time, depending on market conditions and other factors. The Option Strategy is designed to generate gains from option premiums in an attempt to enhance amounts available for distributions payable to the Fund’s shareholders. However, there is no assurance that the Option Strategy will achieve its objective.

Call options on individual securities are contracts representing the right to purchase the underlying equity security at a specified price (the “strike price”) at or before a specified future date (the “expiration date”). The price of the option is determined by trading activity in the broad options market and generally reflects the relationship between factors including the current value of the underlying equity security and the strike price, the volatility of the underlying equity security and the time remaining until the expiration date. As the writer (seller) of a call option, the Fund would receive cash (the premium) from the purchaser of the option, and the purchaser would have the right to receive from the Fund either the underlying security or any appreciation in the value of the underlying security above the strike price upon exercise. In effect, the Fund would forgo the potential appreciation in the underlying security above the strike price in exchange for the premium, although it would retain the risk of loss should the price of the underlying security decline. Therefore, the Fund’s use of the Option Strategy will generally limit the Fund’s ability to benefit from the full upside potential of its Equity Component.

As part of the Option Strategy, the Fund will generally write call options with a strike price that is above (“out-of-the-money”) the market value of the underlying security at the time the option is written. In addition to providing possible gains through premiums, out-of-the-money call options allow the Fund to potentially benefit from appreciation in the underlying security held by the Fund up to the strike price, but the Fund forgoes any appreciation above the strike price. The Fund also reserves the flexibility to write “at-the-money” (i.e., with a strike price equal to the market value of the underlying security) and “in-the-money” call options (i.e., with a strike price below the market value of the underlying security). The Fund will typically only write call options on individual securities if those options are “covered.” The Fund’s written call options on individual securities will ordinarily be covered by the Fund holding the underlying security in its portfolio throughout the term of the option. The Fund will generally not write options with respect to individual equity securities (other than ETFs, as described below) that are not held in the Fund’s portfolio (i.e., “naked” options). The Fund may also write call options on equity indexes and ETFs. The Fund will normally cover any options on equity indexes and ETFs either by segregating liquid assets in an amount equal to its net obligations under the contract or by entering into offsetting positions.

The Fund generally will write “listed” call options that are originated and standardized by the Options Clearing Corporation and trade on a major exchange, although it also may write unlisted (or “over-the-counter”) call options and so-called “flex” options (options that are traded on an exchange, but with customized strike prices and expiration dates). The Fund’s Option Strategy could cause the Fund to recognize larger amounts of net short-term capital gains, which are taxable at the higher ordinary income tax rates when distributed to shareholders, than it otherwise would in the absence of such strategy. The Fund’s Option Strategy also could terminate or suspend the Fund’s holding period in the underlying securities, and, as a result, any dividends received by the Fund on those securities may not qualify for treatment as “qualified dividend income” (which generally is taxable to individual shareholders at the lower rates applicable to long-term capital gain).

Risks Associated with the Fund’s Option Strategy. The ability of the Fund to achieve current gains to support Fund dividends is partially dependent on the successful implementation of its Option Strategy. There are several risks associated with transactions in options on securities. For example, there are significant differences between the securities and options markets that could result in an imperfect correlation between these markets, causing a given transaction not to achieve its objective. A decision as to whether, when and how to use options involves the exercise of skill and judgment, and even a well-conceived transaction may be unsuccessful to some degree because of market behavior or unexpected events. The Fund’s ability to use options successfully will depend on the Investment Manager’s ability to predict pertinent market movements, which cannot be assured. As the writer of a covered call option, the Fund forgoes, during the option’s life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call, but has retained the risk of loss should the price of the underlying security decline. In other words, as the Fund writes covered calls over more of its Equity Component, the Fund’s ability to benefit from capital appreciation of its common stock holdings becomes more limited.

About Allianz Global Investors

Allianz Global Investors is a diversified active investment manager with a strong parent company and a culture of risk management. With 25 offices worldwide, we provide global investment and research capabilities with consultative local delivery. We have more than $524 billion in AUM for individuals, families and institutions worldwide and employ over 600 investment professionals.

At Allianz Global Investors, we follow a two-word philosophy: Understand. Act. It describes how we look at the world and how we behave. We aim to stand out as the investment partner our clients trust by listening closely to understand their challenges, then acting decisively to provide them with solutions that meet their needs.

Data as of March 31, 2017 (excluding AUM of entities held for sale); investment professionals as of December 31, 2016

Disclosures

AllianzGI U.S., an indirect, wholly-owned subsidiary of Allianz Asset Management of America L.P. serves as the Fund's investment manager and is a member of Munich-based Allianz Group.

The Fund’s daily New York Stock Exchange closing market prices and net asset values per share as well as other information, including portfolio statistics and performance is available at us.allianzgi.com/closedendfunds.com or by calling the Fund’s shareholder servicing agent at 800-254-5197.

Statements made in this release that look forward in time involve risks and uncertainties and are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such risks and uncertainties include, without limitation, the adverse effect from a decline in the securities markets or a decline in a Fund’s performance, a general downturn in the economy, competition from other companies, changes in government policy or regulation, inability to attract or retain key employees, inability to implement its operating strategy and/or acquisition strategy, and unforeseen costs and effects related to legal proceedings or investigations of governmental and self-regulatory organizations.

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