PIMCO Corporate & Income Fund (NYSE: PCN) revises 80% policy, effective Aug 28, 2026

Rhea-AI Filing Summary

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.

Insights

Fund Governance Specialist

Policy widened to expressly include income-producing derivatives and valuation flexibility.

The Fund’s Prospectus and SAI now state the 80% investment threshold explicitly covers income-producing instruments and derivatives that provide exposure to instruments within that policy. The change clarifies permitted instruments and how derivative exposure may be counted.

The addition of a 60-day written notice requirement for any change to the 80% Policy is a shareholder-notice protection. Subsequent filings or shareholder communications will show operational implementation and any changes in portfolio composition.

Fixed Income Product Specialist

Derivatives and broader income instruments now formalized in the portfolio policy.

The Prospectus explicitly lists derivative instruments, dividend-paying equities, and other structures as potential income-producing investments to satisfy the 80% policy; Fixed Income Instruments are defined to include bonds, bank loans, and similar debt securities.

Valuation guidance in the SAI permits market, notional, or full exposure approaches for derivatives. Product-level implementation and risk reporting will determine how these clauses affect portfolio risk metrics.

Key Figures

80% Policy threshold: 80% Board approval date: June 23, 2026 Effective date: August 28, 2026 +3 more

6 metrics

80% Policy threshold 80% Minimum of net assets invested under the policy

Board approval date June 23, 2026 Board approved changes to the 80% Policy

Effective date August 28, 2026 Date when revised policy and prospectus language take effect

Shareholder notice requirement 60 days Minimum written notice before changing the 80% Policy

Prospectus date June 4, 2026 Prospectus being supplemented

Supplement date June 24, 2026 Prospectus supplement reflecting the revisions

Key Terms

80% Policy, Fixed Income Instruments, notional value, full exposure value, +1 more

5 terms

80% Policy regulatory

"The Fund invests, under normal circumstances, at least 80% of its net assets"

Fixed Income Instruments financial

""Fixed Income Instruments" include bonds, debt securities, bank loans"

Fixed income instruments are loans or IOUs issued by governments, companies, or other organizations that promise regular payments and return of the original amount at a set future date. For investors they matter because they provide predictable income and can reduce overall portfolio risk—think of them as renting out your money for a steady paycheck—while their value can still change with interest rates and issuer credit quality.

notional value financial

"the Fund may value derivative instruments at market value, notional value or full exposure value"

Notional value is the total face amount that a financial contract controls or references—for example the full principal behind a futures, options, or swap position—and represents the size of exposure even when no equivalent cash changes hands. Investors use it to gauge how large a position really is, assess potential gains or losses, and determine margin and risk — like knowing the full price of a house when you’ve only paid a small down payment.

full exposure value financial

"full exposure value (i.e., the sum of the notional amount for the contract plus the market value)"

derivatives financial

"Derivative instruments used by the Fund are expected to be counted towards the Fund’s 80% Policy"

Derivatives are financial contracts whose value depends on the price or performance of another asset, such as a stock, bond, commodity, currency or interest rate. Investors use them to hedge against risk, to speculate on future price moves, or to gain exposure without owning the asset — like buying insurance or placing a leveraged bet — so they can both protect portfolios and magnify gains or losses, affecting risk and market liquidity.

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Available on EDGAR 06/24/2026 - 03:16 PM Accepted by SEC EDGAR 06/24/2026 - 03:12 PM Learn about SEC filing dates

FAQ

What change did PIMCO (PCN) make to its 80% investment policy?

The Fund broadened the 80% Policy to include income-producing Fixed Income Instruments, dividend-paying equities, and derivatives. The Prospectus and SAI were revised to clarify that certain derivatives providing income or exposure to market risk factors may be counted toward the 80% requirement.

When do the policy revisions for PCN become effective?

The Board approved the revisions on June 23, 2026, and the changes are effective August 28, 2026. The Prospectus dated June 4, 2026 is supplemented by the June 24, 2026 supplement reflecting these updates.

Does the Fund need shareholder approval to change the 80% Policy?

No shareholder vote is required per the excerpt. The Fund must provide at least 60 days’ written notice to shareholders before changing the 80% Policy, as added to both the Prospectus and the SAI.

How will derivatives be treated under the revised PCN policy?

Derivatives that provide exposure to investments within the 80% Policy or to related market risk factors are expected to be counted toward the 80% requirement. The SAI permits valuation using market, notional, or full exposure measures for compliance calculations.

What definitions were added to the Prospectus and SAI for PCN?

The Prospectus adds language defining income-producing investments and specifies that “Fixed Income Instruments” include bonds, debt securities, and bank loans. The SAI also clarifies valuation approaches for derivatives: market value, notional value, or full exposure value.

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PIMCO Corporate & Income Strategy Fund

(the “Fund”)

Important Notice Regarding Change in Investment Policy

Supplement dated June 24, 2026 to the Fund’s Prospectus dated June 4, 2026, as supplemented from time to time (the “Prospectus”); and Statement of Additional Information dated June 4, 2026 (the “SAI”)

On June 23, 2026, the Board of Trustees approved changes to the Fund’s 80% investment policy. Effective August 28, 2026, the Fund invests, under normal circumstances, at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in corporate debt obligations of varying maturities and/or income-producing investments, which may include those of non-corporate issuers.

Accordingly, effective August 28, 2026, the Fund’s Prospectus and SAI are revised as shown below.

Prospectus

The first sentence of the “Portfolio Contents” section on the cover page of the Fund’s Prospectus is deleted and replaced with the following:

The Fund invests, under normal circumstances, at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in corporate debt obligations of varying maturities and/or income-producing investments, which may include those of non-corporate issuers. Income-producing investments may include income-producing Fixed Income Instrument investments, dividend-paying equity securities, derivatives on either of the foregoing, derivatives providing exposure to other types of income-producing instruments, and any other instrument or arrangement that is structured to produce income, including any derivatives position that produces income or the sale of which produces a premium payment. “Fixed Income Instruments” include bonds, debt securities, bank loans and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities.

The first sentence of the first paragraph under the “Prospectus Summary—Portfolio Contents” section of the Prospectus and the first sentence of the first paragraph under the “Portfolio Contents” section of the Prospectus are deleted and replaced with the following:

The Fund invests, under normal circumstances, at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in corporate debt obligations of varying maturities and/or income-producing investments, which may include those of non-corporate issuers (the “80% Policy”).

The following is added to the end of the third paragraph under the “Investment Objectives and Policies” section of the Prospectus:

The Fund may not change its 80% Policy unless it provides shareholders with at least 60 days’ written notice of such change.

The following is added as the new fourth sentence of the first paragraph under the “Prospectus Summary—Portfolio Contents” section of the Prospectus and the new fourth sentence of the first paragraph under the “Portfolio Contents” section of the Prospectus:

Income-producing investments may include income-producing Fixed Income Instrument investments, dividend-paying equity securities, derivatives on either of the foregoing, derivatives providing exposure to other types of income-producing instruments, and any other instrument or arrangement that is structured to produce income, including any derivatives position that produces income or the sale of which produces a premium payment.

The following is added to the end of the first paragraph under the “Portfolio Contents—Derivatives” section of the Prospectus:

Derivative instruments used by the Fund are expected to be counted towards the Fund’s 80% Policy to the extent they provide investment exposure to investments within that Policy or to one or more of the market risk factors associated with investments included in that Policy.

The following is added as a new paragraph under the “Portfolio Contents” section of the Prospectus:

Fixed Income Instruments

“Fixed Income Instruments,” as used generally in this prospectus, includes:

• securities issued or guaranteed by the U.S. Government, its agencies or government-sponsored enterprises (“U.S. Government Securities”);

• corporate debt securities of U.S. and non-U.S. issuers, including convertible securities and corporate commercial paper;

• mortgage-backed and other asset-backed securities;

• inflation-indexed bonds issued both by governments and corporations;

• structured notes, including hybrid or “indexed” securities and event-linked bonds;

• bank capital and trust preferred securities;

• loans, including participations in and assignments thereof;

• delayed draw and delayed funding loans and revolving credit facilities;

• bank certificates of deposit, fixed time deposits and bankers’ acceptances;

• repurchase agreements on Fixed Income Instruments and reverse repurchase agreements on Fixed Income Instruments;

• debt securities issued by states or local governments and their agencies, authorities and other government-sponsored enterprises;

• obligations of non-U.S. governments or their subdivisions, agencies and government-sponsored enterprises; and

• obligations of international agencies or supranational entities.

Securities issued by U.S. Government agencies or government-sponsored enterprises may not be guaranteed by the U.S. Treasury.

The Fund, to the extent permitted by the 1940 Act, the rules thereunder or any exemptive relief therefrom, may invest in derivatives based on Fixed Income Instruments.

SAI

The eighth paragraph under the “Investment Restrictions—Other Information Regarding Investment Restrictions” section of the Fund’s SAI is deleted and replaced with the following:

The Fund may not change its policy to invest at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in corporate debt obligations of varying maturities and/or income-producing investments, which may include those of non-corporate issuers (the “80% Policy”), unless it provides shareholders with at least 60 days’ written notice of such change.

The first sentence of the eleventh paragraph under the “Investment Restrictions—Other Information Regarding Investment Restrictions” section of the Fund’s SAI is deleted and replaced with the following:

Except as otherwise required by applicable regulation, for purposes of its investment policies and restrictions, the Fund may value derivative instruments at market value, notional value or full exposure value (i.e., the sum of the notional amount for the contract plus the market value), or any combination of the foregoing (e.g., notional value for purposes of calculating the numerator and market value for purposes of calculating the denominator for compliance with a particular policy or restriction).

The fourth sentence of the eleventh paragraph under the “Investment Restrictions—Other Information Regarding Investment Restrictions” section of the Fund’s SAI is deleted.

Investors Should Retain This Supplement for Future Reference

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