PIMCO Income Strategy Fund may offer common shares from time to time through a primary shelf registration, with the terms of each offering set out in a prospectus supplement. Net proceeds are intended for investments consistent with the Fund’s investment objective and policies.
The Fund seeks high current income consistent with preservation of capital, investing primarily in diversified floating- and fixed-rate debt instruments. It normally invests at least 50% of total assets in corporate debt obligations and other corporate securities, and may invest up to 20% of total assets in common stocks and other equity securities. Its average portfolio duration is normally expected to fall within a zero-to-eight-year range.
The Fund may invest without limit in below-investment-grade debt and currently uses leverage principally through reverse repurchase agreements. Leverage can increase the sensitivity of its portfolio to interest-rate movements and the volatility of its shares. The Fund makes regular monthly cash distributions; their rate may vary, and distributions may include a return of capital.
PIMCO Income Strategy Fund (PFL), a diversified closed‑end bond fund seeking high current income with capital preservation, reported solid long‑term results for the year ended June 30, 2026. NAV total return was 8.23% for one year, 5.28% over five years, and 8.27% over ten years, exceeding the ICE BofA US High Yield Index at 5.75%, 4.13%, and 5.70%, respectively.
As of June 30, 2026, PFL’s NAV was $7.64 and its market price was $7.88, a 3.14% premium, with a NAV distribution rate of 12.79% and total effective leverage of 5.48%, primarily via reverse repurchase agreements. Net investment income for the year was $33.2 million, while total common distributions were $46.9 million, including a tax‑basis return of capital, contributing to a multi‑year decline in NAV per share.
The report highlights significant exposures to corporate bonds, loan participations, non‑agency mortgage‑backed and asset‑backed securities, and use of derivatives such as interest rate swaps and paired swap transactions to generate distributable income. It also discusses interest‑rate, credit, liquidity, leverage, geopolitical and banking‑sector risks that can negatively affect PFL and the other PIMCO closed‑end funds covered.
PIMCO Income Strategy Fund insider Willard Morgan, who serves as Assistant Secretary, filed an initial Form 3 reporting his status as an officer of the fund. The filing does not list any common stock or derivative transactions, indicating no reported buys, sells, or option exercises at this time.
PIMCO Income Strategy Fund filed a Form 3 insider report identifying Russel Davenport as an officer with the title "Assistant Treasurer." The data provided shows no reported transactions, derivative positions, or holding entries for this reporting person, indicating no trade activity is disclosed in this excerpt.
PIMCO Income Strategy Fund filed a Form 3 identifying Shin Myung as an officer with the title Assistant Secretary. The excerpt shows no reported transactions, exercises, gifts, or other changes in holdings, indicating this is a position disclosure rather than a trading event.
PIMCO INCOME STRATEGY FUND filed a Form 3 identifying Eric David Johnson as an officer serving as President. This filing establishes him as a reporting person for the fund under insider ownership rules. The data provided show no reportable transactions or derivative positions in this Form 3.
PIMCO Income Strategy Fund filed a Form 3 identifying Paul Vitale, an assistant treasurer, as a reporting person for insider holdings. The filing lists no transactions, meaning there are no reported purchases, sales, or derivative exercises associated with him in this initial ownership statement.
PIMCO Income Strategy Fund effective June 24, 2026 supplements its Prospectus and SAI to expand and clarify its ability to invest in and originate a wide range of loans. The supplement states the Fund may invest in whole loans, participations, secured and unsecured notes, senior and subordinated loans, mezzanine and bridge loans, residential and commercial mortgage-related loans, consumer loans and DIP financings, including to borrowers rated below investment grade and foreign borrowers. The Fund notes liquidity, credit, settlement, regulatory and licensing risks associated with loan purchases and originations and reiterates that certain income from loan origination may affect its qualification as a regulated investment company under Subchapter M of the Code.
PIMCO Income Strategy Fund is updating its investment strategy to allow the fund to invest in and originate a wide range of loans as a principal strategy, effective June 24, 2026. These include residential and commercial mortgage-related loans, consumer loans, corporate loans, bridge loans and subordinated or unsecured loans, including to borrowers that are unrated or below investment grade.
The supplement explains that loans may be subprime in quality, may lack liquid secondary markets, and can expose the fund to higher credit, liquidity, interest rate, settlement and valuation risks. It also highlights potential regulatory and licensing requirements, possible litigation and regulatory actions tied to lending and servicing, and the need to maintain regulated investment company tax status despite new loan-origination fee and income streams.
PIMCO Income Strategy Fund filed a Prospectus Supplement to offer up to $50,000,000 of its common shares via an "at the market" sales agreement with JonesTrading. As of February 27, 2026 the Fund had sold 20,935,378 shares in prior ATM offerings for net proceeds of $200,337,539. The Fund reported 49,160,910 outstanding Common Shares and net assets of $386,810,617; NAV was $7.87 and the last reported market sale was $8.43 per share on that date.