PIMCO Corporate & Income Strategy Fund (PCN) filed its annual shareholder report, which also covers four affiliated PIMCO closed-end bond funds. PCN seeks high current income with secondary capital preservation and appreciation, investing primarily in corporate credit with meaningful use of leverage.
For the year ended June 30, 2026, PCN’s NAV total return was 9.22% and its market-price total return was 5.35%, compared with 5.75% for the ICE BofA US High Yield Index. Five- and ten-year average annual NAV returns were 7.21% and 9.36%, respectively. PCN’s common shares closed at $11.95 versus a NAV of $11.50, a 3.91% premium, with a 11.74% distribution rate on NAV and Total Effective Leverage of 24.80%.
The report details extensive fixed-income risks: sensitivity to changing interest rates, credit and liquidity risk in corporate and structured credit, and the use of reverse repurchase agreements and derivatives. Strategies may include “paired swap” transactions and other derivatives that can generate taxable ordinary income to support distributions even when they contribute to NAV declines or capital losses. The fund discloses that common shares can trade at premiums or discounts to NAV and that offerings of additional shares could dilute NAV and pressure market prices.
PIMCO CORPORATE & INCOME STRATEGY FUND filed a Form 3 identifying Willard Morgan as an insider of the fund. Morgan is listed as an officer with the title Assistant Secretary. The filing does not report any transactions or derivative positions, serving as an initial ownership disclosure baseline.
PIMCO Corporate & Income Strategy Fund filed an initial ownership report for officer Davenport Russel, who serves as assistant treasurer. This Form 3 does not list any buy, sell, acquisition, or disposition transactions and shows no derivative positions in the summary data.
PIMCO CORPORATE & INCOME STRATEGY FUND reported insider information for officer Shin Myung on a Form 3. Myung is listed as an ASSISTANT SECRETARY of the fund. The filing shows no equity transactions or holdings, with all transaction counts and share amounts reported as zero.
PIMCO Corporate & Income Strategy Fund officer Eric David Johnson, the fund's President, submitted an initial insider ownership report on Form 3. This filing establishes his status as a reporting person for the fund but does not list any transactions or derivative positions.
PIMCO Corporate & Income Strategy Fund reported that assistant treasurer Paul Vitale filed a Form 3, the initial statement of beneficial ownership for insiders. The filing does not report any stock transactions or derivative positions and serves as a baseline disclosure of his status as an officer.
PIMCO Corporate & Income Strategy Fund issued a Supplement dated June 24, 2026 that revises its Prospectus and Statement of Additional Information effective immediately. The supplement restates the Fund’s portfolio policy that, under normal market conditions, the Fund will invest at least 80% of net assets plus borrowings in corporate and other income-producing securities and normally at least 50% of total assets in corporate debt instruments.
The supplement details permissible exposures and limits: up to 40% of total assets may be in instruments economically tied to emerging markets (with an exception for certain short‑dated local‑currency sovereign debt), the Fund may invest up to 20% of total assets in common stocks, and it generally will not invest more than 20% of total assets in securities rated CCC+ (S&P/Fitch) or Caa1 (Moody’s) or lower, except that mortgage‑related and other ABS may be held without rating limits. The supplement also expands disclosure on loan investments, origination activities, related risks (liquidity, valuation, foreclosure, licensing), derivatives use, and expense allocations.
PIMCO Corporate & Income Strategy Fund has updated its investment policies to expand into loans and defaulted debt. Effective June 24, 2026, the Fund may, as a principal strategy, invest in and originate a wide range of loans to companies and individuals, including below-investment-grade and subprime borrowers. Effective July 24, 2026, it may invest without limit in defaulted bonds, subject to existing guidelines.
The Fund will normally invest at least 80% of net assets plus borrowings in corporate and other income-producing securities, and at least 50% of total assets in corporate debt and related corporate securities. It may invest up to 40% of total assets in emerging markets, up to 20% in lower-rated (CCC+/Caa1 or below) non-ABS debt, and up to 20% in equities.
The supplement highlights extensive use of derivatives, credit default swaps, structured products, and loan structures such as bridge loans and debtor-in-possession financings. It also details significant credit, liquidity, legal, licensing, and servicing risks tied to loan origination, subprime exposure, illiquid investments, and complex loan markets.
PIMCO Corporate & Income Strategy Fund revised its 80% Policy, expanding the definition of qualifying investments to include certain income-producing instruments and derivatives. The Board approved the changes on June 23, 2026; the revisions are effective August 28, 2026 and are reflected in the Prospectus and SAI.
The Fund added a shareholder-protection clause requiring at least 60 days’ written notice before changing the 80% Policy; the Prospectus language clarifies counting of derivative exposure and defines “Fixed Income Instruments” and valuation approaches for derivatives in the SAI.
PIMCO Corporate & Income Strategy Fund is updating its 80% investment policy. Effective August 28, 2026, the fund will invest at least 80% of its net assets, plus any investment borrowings, in corporate debt obligations and other income-producing investments, including some from non-corporate issuers.
The fund clarifies that income-producing investments may include fixed income instruments, dividend-paying equities and various derivatives tied to those assets. Derivatives that provide exposure to investments or market risk factors within the 80% policy are expected to count toward the 80% threshold. The fund also states it will not change this 80% policy without giving shareholders at least 60 days’ written notice.