PIMCO High Income Fund posts 11.11% NAV return
PIMCO High Income Fund (PHK), a leveraged closed‑end high‑yield bond fund, reports solid results for the year ended June 30, 2026.
Rhea-AI Filing Summary
PIMCO High Income Fund (PHK), a leveraged closed‑end high‑yield bond fund, reports solid results for the year ended June 30, 2026. At NAV, the fund returned 11.11% over one year, ahead of the ICE BofA US High Yield Index’s 5.75%, and has a 10‑year NAV return of 9.73% annually.
PHK’s portfolio is concentrated in corporate bonds (33.5%), loan participations (16.6%) and asset‑backed securities (9.9%), with total effective leverage of 30.93%, primarily via reverse repurchase agreements. Net investment income was $87.3 million versus expenses of $15.0 million, producing a net increase in net assets from operations of $84.6 million.
On June 30, 2026, PHK’s NAV was $4.53 and the market price was $4.66, a 2.87% premium to NAV. The fund paid a high distribution rate of 12.36% on market price, funded by income plus a tax‑basis return of capital of $10.6 million. Net assets applicable to common shareholders rose to $848.0 million, with an expense ratio of 1.78% of net assets.
Positive
- PHK’s 1‑year NAV return of 11.11% for the period ended June 30, 2026 exceeded the ICE BofA US High Yield Index’s 5.75%, and its 10‑year NAV return of 9.73% annually also outperformed the index’s 5.70%, indicating strong long‑term performance versus its benchmark.
Negative
- PHK employs 30.93% total effective leverage, with interest expense of 1.01% of net assets contributing to a total expense ratio of 1.78%, which increases risk and reduces net returns relative to an unlevered structure.
Filing Explained
PHK’s completed share issuance expanded its common-share base, reducing existing holders’ ownership percentages absent offsetting changes.
For the year ended
An at-the-market program permits gradual sales of new shares into the open market at prevailing prices. Because PHK issued additional shares, its total share count increased and existing holders’ percentage ownership decreases absent offsetting changes.
The report also records 2,286 thousand shares issued through distribution reinvestment, for a reported net increase of 13,151 thousand common shares outstanding during the year.
Key Figures
1‑Year NAV Total Return: 11.11%
10‑Year NAV Total Return: 9.73% annually
NAV and Market Price: $4.53 NAV; $4.66 market price
+5 more
8 metrics
1‑Year NAV Total Return
11.11%
PHK for the period ended June 30, 2026
10‑Year NAV Total Return
9.73% annually
PHK for the 10 years ended June 30, 2026
NAV and Market Price
$4.53 NAV; $4.66 market price
PHK as of June 30, 2026
Premium to NAV
2.87%
PHK market price over NAV on June 30, 2026
Distribution Rate (Market Price)
12.36%
PHK market price distribution rate as of June 30, 2026
Total Effective Leverage
30.93%
PHK leverage level as of June 30, 2026
Total Expense Ratio
1.78% of net assets
PHK annual expenses including interest for the fiscal year
Net Assets
$847.977 million
PHK net assets applicable to common shareholders at June 30, 2026
Key Terms
reverse repurchase agreements, total effective leverage, auction rate preferred shares, return of capital, +2 more
6 terms
reverse repurchase agreements financial
"The table reflects the use of leverage attributable to the Fund’s reverse repurchase agreements"
A reverse repurchase agreement is a short-term, collateralized loan in which one party buys a security from another with a promise to sell it back at a set price on a specific later date; for the buyer this functions like lending cash and holding the security as collateral. Think of it as parking money in a very short-term, secured savings account. Investors care because these transactions influence short-term interest rates, market liquidity and where large cash balances earn safe, predictable returns, and they can signal stress or stability in funding markets.
total effective leverage financial
"Total Effective Leverage (3) | | | 30.93%"
return of capital financial
"Tax basis return of capital | | | (10,588)"
Return of capital is when an investor receives money from their investment that is not considered profit or earnings but rather a portion of the original amount they invested. It’s similar to getting back part of your initial savings rather than gains from it. This matters because it can affect how much money an investor still has in the investment and may have tax implications.
Form N-PORT regulatory
"The Funds file their complete schedules of portfolio holdings with the SEC on Form N-PORT"
Form N-PORT is a standardized regulatory filing that investment funds use to report detailed, month-by-month information about what they own and certain risk and liquidity measures to securities regulators. For investors, it acts like an itemized monthly bank statement for a fund, offering transparency about holdings and exposures so people can judge a fund’s strategy, concentration and potential risks over time.
paired swap transaction financial
"In such a “paired swap transaction”, a Fund would generally enter into one or more interest rate swap agreements"
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How did PIMCO High Income Fund (PHK) perform over the year ended June 30, 2026?
PHK’s NAV total return was 11.11% and its market price total return was 9.88% for the year ended June 30, 2026, compared with 5.75% for the ICE BofA US High Yield Index.
What are the key portfolio allocations for PHK as of June 30, 2026?
As of June 30, 2026, PHK’s largest exposures were corporate bonds and notes 33.5%, loan participations and assignments 16.6%, asset‑backed securities 9.9%, sovereign issues 8.6% and short‑term instruments 8.5%.
What are PHK’s distribution rate and leverage level?
On June 30, 2026, PHK’s market price distribution rate was 12.36% and its NAV distribution rate was 12.72%. The fund reported 30.93% total effective leverage, largely via reverse repurchase agreements.
What is PHK’s net asset size and expense ratio?
As of June 30, 2026, PHK’s net assets applicable to common shareholders were $847.977 million. Its total annual expenses were 1.78% of net assets, including 0.76% management fees and 1.01% interest expense.
How much income did PHK generate during the fiscal year?
For the year ended June 30, 2026, PHK reported $102.293 million in total income and $14.949 million in expenses, resulting in $87.344 million of net investment income and a $84.641 million net increase in net assets from operations.
Did PHK’s 2026 distributions include return of capital?
Yes. For the year ended June 30, 2026, PHK paid total distributions to common shareholders of $104.709 million, of which $10.588 million was classified as tax‑basis return of capital.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number:
811-21311
(Exact name of registrant as specified in charter)
1633 Broadway, New York, NY 10019
(Address of principal executive offices)
Bijal Y. Parikh
Treasurer (Principal Financial & Accounting Officer)
650 Newport Center Drive, Newport Beach, CA 92660
(Name and address of agent for service)
Copies to:
David C. Sullivan
Ropes & Gray LLP
Prudential Tower
800 Boylston Street
Boston, MA 02199
Registrant’s telephone number, including area code: (844) 337-4626
Date of fiscal year end: June 30
Date of reporting period: June 30, 2026
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR 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 Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-1090. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. |
Reports to Stockholders. |
The following is a copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1).
PIMCO CLOSED-END FUNDS
Annual Report
June 30, 2026
PIMCO Corporate & Income Opportunity Fund | PTY | NYSE
PIMCO Corporate & Income Strategy Fund | PCN | NYSE
PIMCO High Income Fund | PHK | NYSE
PIMCO Income Strategy Fund | PFL | NYSE
PIMCO Income Strategy Fund II | PFN | NYSE
Table of Contents
| Page | ||||||||
| Important Information About the Funds |
2 | |||||||
| Index Descriptions |
21 | |||||||
| Financial Highlights |
22 | |||||||
| Statements of Assets and Liabilities |
26 | |||||||
| Statements of Operations |
27 | |||||||
| Statements of Changes in Net Assets |
28 | |||||||
| Statements of Cash Flows |
30 | |||||||
| Notes to Financial Statements |
106 | |||||||
| Report of Independent Registered Public Accounting Firm |
140 | |||||||
| Glossary |
141 | |||||||
| Distribution Information |
142 | |||||||
| Federal Income Tax Information |
143 | |||||||
| Shareholder Meeting Results |
144 | |||||||
| Changes to Board of Trustees |
146 | |||||||
| Dividend Reinvestment Plan |
147 | |||||||
| Additional Information Regarding the Funds |
149 | |||||||
| The Funds’ Investment Objectives and Strategies |
150 | |||||||
| Principal Risks of the Funds |
174 | |||||||
| Risk Management Strategies |
210 | |||||||
| Effects of Leverage |
211 | |||||||
| Fundamental Investment Restrictions |
212 | |||||||
| Management of the Funds |
217 | |||||||
| Approval of Investment Management Agreements |
220 | |||||||
| Privacy Policy |
226 | |||||||
| Fund | Fund Summary |
Schedule of Investments |
||||||
| PIMCO Corporate & Income Opportunity Fund |
6 | 31 | ||||||
| PIMCO Corporate & Income Strategy Fund |
9 | 49 | ||||||
| PIMCO High Income Fund |
12 | 64 | ||||||
| PIMCO Income Strategy Fund |
15 | 79 | ||||||
| PIMCO Income Strategy Fund II |
18 | 91 | ||||||
Important Information About the Funds |
Information regarding each Fund’s principal investment strategies, principal risks and risk management strategies, the effects of each Fund’s leverage, and each Fund’s fundamental investment restrictions, including a summary of certain changes thereto during the most recent fiscal year, can be found within the relevant sections of this report. Please refer to the Table of Contents for further information.
We believe that bond funds have an important role to play in a well-diversified investment portfolio. It is important to note, however, that in an environment where interest rates may trend upward, rising rates would negatively impact the performance of most bond funds, and fixed-income securities and other instruments held by a Fund are likely to decrease in value. A wide variety of factors can cause interest rates or yields of U.S. Treasury securities (or yields of other types of bonds) to rise (e.g., central bank monetary policies, inflation rates, general economic conditions, etc.). In addition, changes in interest rates can be sudden and unpredictable, and there is no guarantee that Fund management will anticipate such movement accurately. A Fund may experience losses as a result of movements in interest rates.
Changing interest rates may have unpredictable effects on markets, which may detract from Fund performance. It is uncertain whether rates will remain steady, increase or decrease in the future. As such, the Funds may face a heightened level of risk associated with changing interest rates and/or bond yields. This could be driven by a variety of factors, including but not limited to central bank monetary policies, changing inflation or real growth rates, general economic conditions, increasing bond issuances or reduced market demand for certain types of bonds or bonds generally. Further, while bond markets have steadily grown over time, dealer inventories of corporate bonds are near historic lows in relation to market size. As a result, there has been a significant reduction in the ability of dealers to “make markets”.
Bond funds and individual bonds with a longer duration (a measure used to determine the sensitivity of a security’s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than funds or securities with shorter durations. All of the factors mentioned above, individually or collectively, could potentially lead to decreased liquidity and increased volatility in the fixed income markets, or negatively impact a Fund’s performance or cause a Fund to incur losses.
A Fund may enter into opposite sides of multiple interest rate swaps or other derivatives with respect to the same underlying reference instrument (e.g., a 10-year U.S. treasury) that have different effective dates with respect to interest accrual time periods also for the principal purpose of generating distributable gains (characterized as ordinary income for tax purposes) that are not part of a Fund’s duration or yield curve management strategies. In such a “paired swap transaction”, a
Fund would generally enter into one or more interest rate swap agreements whereby a Fund agrees to make regular payments starting at the time a Fund enters into the agreements equal to a floating interest rate in return for payments equal to a fixed interest rate (the “initial leg”). A Fund would also enter into one or more interest rate swap agreements on the same underlying instrument, but take the opposite position (i.e., in this example, a Fund would make regular payments equal to a fixed interest rate in return for receiving payments equal to a floating interest rate) with respect to a contract whereby the payment obligations do not commence until a date following the commencement of the initial leg (the “forward leg”).
A Fund may engage in investment strategies, including those that employ the use of paired swap transactions, the use of interest rate swaps to seek to capitalize on differences between short-term and long-term interest rates and other derivatives transactions, to, among other things, seek to generate current, distributable income, even if such strategies could potentially result in declines in a Fund’s net asset value (“NAV”). A Fund’s income and gain-generating strategies, including certain derivatives strategies, may generate current income and gains taxable as ordinary income sufficient to support monthly distributions even in situations when a Fund has experienced a decline in net assets due to, for example, adverse changes in the broad U.S. or non-U.S. equity markets or a Fund’s debt investments, or arising from its use of derivatives. For instance, a portion of a Fund’s monthly distributions may be sourced from paired swap transactions utilized to produce current distributable ordinary income for tax purposes on the initial leg, with a substantial possibility that a Fund will later realize a corresponding capital loss and potential decline in its NAV with respect to the forward leg (to the extent there are not corresponding offsetting capital gains being generated from other sources). Because some or all of these transactions may generate capital losses without corresponding offsetting capital gains, portions of a Fund’s distributions recognized as ordinary income for tax purposes (such as from paired swap transactions, for example) may be economically similar to a taxable return of capital when considered together with such capital losses. More generally, sales of a Fund’s portfolio holdings may result in short-term capital gains (which are generally taxed to shareholders at ordinary income tax rates when distributed net of short-term capital losses and net of long-term capital losses), potentially subjecting shareholders of a Fund to adverse tax consequences.
Classifications of the Funds’ portfolio holdings in this report are made according to financial reporting standards. The classification of a particular portfolio holding as shown in the Allocation Breakdown and Schedule of Investments or Consolidated Schedule of Investments sections of this report may differ from the classification used for the
2 |
PIMCO CLOSED-END FUNDS |
Funds’ compliance calculations, including those used in the Funds’ then-current prospectus, investment objectives, regulatory and other investment limitations and policies, which may be based on different asset class, sector or geographical classifications. Each Fund is separately monitored for compliance with respect to prospectus and regulatory requirements.
The geographical classification of foreign
(non-U.S.)
securities in this report, if any, is classified by the country of incorporation of a holding. In certain instances, a security’s country of incorporation may be different from its country of economic exposure. In February 2022, Russia launched an invasion of Ukraine. As a result, Russia and other countries, persons and entities that provided material aid to Russia’s aggression against Ukraine, have been the subject of economic sanctions and import and export controls imposed by countries throughout the world, including the United States. Such measures have had and may continue to have an adverse effect on the Russian, Belarusian and other securities and economies, which may, in turn, negatively impact a Fund. The extent, duration and impact of Russia’s military action in Ukraine, related sanctions and retaliatory actions are difficult to ascertain, but could be significant and have severe adverse effects on the region, including significant adverse effects on the regional, European and global economies and the markets for certain securities and commodities, such as oil and natural gas, as well as other sectors. Further, a Fund may have investments in securities and instruments that are economically tied to the region and may have been negatively impacted by the sanctions and counter-sanctions by Russia, including declines in value and reductions in liquidity. The sanctions may cause a Fund to sell portfolio holdings at a disadvantageous time or price or to continue to hold investments that a Fund may no longer seek to hold. In addition, the armed conflict among the United States, Israel, and Iran has caused, and could continue to cause, significant market disruptions and volatility. The conflict has had a particular negative impact on oil and gas markets, which could have a broader adverse effect on many sectors of the global economy in the future.
The United States’ enforcement of restrictions on U.S. investments in certain issuers and tariffs on goods from certain other countries has contributed to and may continue to contribute to international trade tensions and may impact portfolio securities. The U.S. government has indicated an intent to alter its approach to international trade policy, including in some cases renegotiating, modifying or terminating certain bilateral or multi-lateral trade arrangements with foreign countries, and it has proposed to take and/or taken related actions, including the imposition of or stated potential imposition of a broad range of tariffs. The imposition of tariffs, trade restrictions, currency restrictions or similar actions (or retaliatory measures taken in response) could lead
to, for example, price volatility, reduced market sentiment, and changes in inflation expectations. These and other geopolitical events may contribute to increased instability in the U.S. and global economies and markets, which may have an adverse effect on the performance of a Fund and its investments.
The common shares of the Funds trade on the New York Stock Exchange. As with any stock, the price of a Fund’s common shares will fluctuate with market conditions and other factors. If you sell your common shares of a Fund, the price received may be more or less than your original investment. Shares of
closed-end
management investment companies, such as the Funds, frequently trade at a discount from their NAV and may trade at a price that is less than the initial offering price and/or the NAV of such shares. Further, if a Fund’s shares trade at a price that is more than the initial offering price and/or the NAV of such shares, including at a substantial premium and/or for an extended period of time, there is no assurance that any such premium will be sustained for any period of time and will not decrease, or that the shares will not trade at a discount to NAV thereafter. Increased volatility in the U.S. and global markets could be harmful to the Funds, issuers in which they invest and other market participants and Fund service providers. For example, if a bank at which a Fund or issuer has an account fails, any cash or other assets in bank or custody accounts, which may be substantial in size, could be temporarily inaccessible or permanently lost by the Fund or issuer. If a bank that provides a subscription line credit facility, asset-based facility, other credit facility and/or other services to an issuer or to a fund fails, the issuer or fund could be unable to draw funds under its credit facilities or obtain replacement credit facilities or other services from other lending institutions with similar terms.
Issuers in which a Fund may invest can be affected by volatility in the banking sector. Even if banks used by issuers in which the Funds invest remain solvent, volatility in the banking sector could contribute to, cause or intensify an economic recession, increase the costs of capital and banking services or result in the issuers being unable to obtain or refinance indebtedness at all or on as favorable terms as could otherwise have been obtained. Conditions in the banking sector are evolving, and the scope of any potential impacts to a Fund and issuers, both from market conditions and also potential legislative or regulatory responses, is uncertain. Such conditions and responses, as well as a changing interest rate environment, can contribute to decreased market liquidity and erode the value of certain holdings. Market volatility and uncertainty and/or a downturn in market and economic and financial conditions, as a result of developments in the banking sector or otherwise (including as a result of delayed access to cash or credit facilities), could have an adverse impact on the Funds and issuers in which they invest.
ANNUAL REPORT |
| | JUNE 30, 2026 | 3 |
Important Information About the Funds |
(Cont.) |
On each Fund Summary page in this Shareholder Report, the Average Annual Total Return table and Cumulative Returns chart measure performance assuming that any dividend and capital gain distributions were reinvested. Total return is calculated by determining the percentage change in NAV or market price (as applicable) in the specified period. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions. Total return for a period of more than one year represents the average annual total return. Performance at market price will differ from results at NAV. Although market price returns tend to reflect investment results over time, during shorter periods returns at market price can also be influenced by factors such as changing views about a Fund, market conditions, supply and demand for the Fund’s shares, or changes in the Fund’s dividends. Performance shown is net of fees and expenses. Historical NAV performance for a Fund may have been positively impacted by fee waivers or expense limitations in place during some or all of the periods shown, if applicable. Future performance (including total return or yield) and distributions may be negatively impacted by the expiration or reduction of any such fee waivers or expense limitations.
The dividend rate that a Fund pays on its common shares may vary as portfolio and market conditions change, and will depend on a number of factors, including without limit the amount of a Fund’s undistributed net investment income and net short- and long-term capital gains, as well as the costs of any leverage obtained by a Fund. As portfolio and market conditions change, the rate of distributions on the common shares and a Fund’s dividend policy could change. There can be no assurance that a change in market conditions or other factors will not result in a change in a Fund’s distribution rate or that the rate will be sustainable in the future.
The following table discloses the inception date and diversification status of each Fund:
Fund Name |
Inception Date |
Diversification Status |
||||||||||
| PIMCO Corporate & Income Opportunity Fund |
12/27/02 | Diversified | ||||||||||
| PIMCO Corporate & Income Strategy Fund |
12/21/01 | Diversified | ||||||||||
| PIMCO High Income Fund |
04/30/03 | Diversified | ||||||||||
| PIMCO Income Strategy Fund |
08/29/03 | Diversified | ||||||||||
| PIMCO Income Strategy Fund II |
10/29/04 | Diversified | ||||||||||
An investment in a Fund is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation or any other government agency. It is possible to lose money on investments in a Fund.
The Trustees are responsible generally for overseeing the management of the Funds. The Trustees authorize the Funds to enter into service agreements with Pacific Investment Management Company LLC (“PIMCO”) and other service providers in order to provide, and in some
cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Funds. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither a Fund’s prospectus or Statement of Additional Information (“SAI”), any press release or shareholder report, any contracts filed as exhibits to a Fund’s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of a Fund creates a contract between or among any shareholders of a Fund, on the one hand, and the Fund, a service provider to the Fund, and/or the Trustees or officers of the Fund, on the other hand.
The Trustees (or the Funds and their officers, service providers or other delegates acting under authority of the Trustees) may amend its most recent prospectus or use a new prospectus or SAI with respect to a Fund, adopt and disclose new or amended policies and other changes in press releases and shareholder reports and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which a Fund is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to any Fund, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement was specifically disclosed in a Fund’s then-current prospectus, SAI or shareholder report and is otherwise still in effect.
PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule
206(4)-6
under the Investment Advisers Act of 1940, as amended. The Proxy Policy has been adopted by the Funds as the policies and procedures that PIMCO will use when voting proxies on behalf of the Funds. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of each Fund, and information about how each Fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, are available without charge, upon request, by calling the Funds at (844) 33-PIMCO,
on the Funds’ website at www.pimco.com, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov. The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Form N-PORT reports are available to the public on the SEC’s website at www.sec.gov and on PIMCO’s website at www.pimco.com, and upon request by calling PIMCO at (844)
33-PIMCO.
In August 2024, the SEC adopted amendments to Form N-PORT requiring funds to file Form N-PORT reports on a monthly basis and within 30 days of month end, with each report being made public 60 days after month end. On April 16, 2025, 4 |
PIMCO CLOSED-END FUNDS |
the SEC extended the compliance date for Form N-PORT amendments and fund groups with $1 billion or more in net assets will be required to comply with the amendments for reports filed on or after November 17, 2027. On February 18, 2026, the SEC extended the compliance date for Form N-PORT reporting requirements related to Rule 35d-1 (the “Names Rule”) to November 17, 2027 for fund groups with net assets of $10 billion or more.
SEC rules allow the Funds to fulfill their obligation to deliver shareholder reports to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Investors may elect to receive all future reports in paper free of charge by contacting their financial intermediary or, if invested directly with a Fund, investors can inform the Fund by calling (844) 33-PIMCO. Any election to receive reports in paper will apply to all funds held with the fund complex if invested directly with a Fund or to all funds held in the investor’s account if invested through a financial intermediary. Paper copies of the Funds’ shareholder reports are required to be provided free of charge by the Fund or financial intermediary upon request.
ANNUAL REPORT |
| | JUNE 30, 2026 | 5 |
PIMCO Corporate & Income Opportunity Fund
Symbol on NYSE -
PTY
Cumulative Returns Through June 30, 2026
$10,000 invested at the end of the month when the Fund commenced operations.
Allocation Breakdown as of June 30, 2026
†
§
| Loan Participations and Assignments |
30.4% | |||
| Corporate Bonds & Notes |
29.8% | |||
| Sovereign Issues |
9.4% | |||
| Short-Term Instruments ‡ |
8.7% | |||
| Non-Agency Mortgage-Backed Securities |
5.4% | |||
| Asset-Backed Securities |
5.0% | |||
| U.S. Government Agencies |
4.3% | |||
| Common Stocks |
2.3% | |||
| Convertible Bonds & Notes |
1.8% | |||
| Preferred Securities |
1.5% | |||
| Other |
1.4% | |||
† |
% of Investments, at value. |
§ |
Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any. |
‡ |
Includes Central Funds Used for Cash Management Purposes. |
| Average Annual Total Return (1) for the period ended June 30, 2026 |
||||||||||||||||||
| 1 Year | 5 Year | 10 Year | Commencement of Operations (12/27/02) |
|||||||||||||||
|
Market Price |
(3.01)% |
0.95% |
9.37% |
11.43% |
|||||||||||||
|
NAV |
10.81% |
8.25% |
11.34% |
12.66% |
|||||||||||||
|
ICE BofA US High Yield Index |
5.75% |
4.13% |
5.70% |
7.41% ¨ |
|||||||||||||
All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.
¨
It is not possible to invest directly in an unmanaged index.
(1) |
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale of Fund shares. Total return, market price, NAV, market price distribution rate, and NAV distribution rate will fluctuate with changes in market conditions. The NAV presented may differ from the NAV reported for the same period in other Fund materials. Performance current to the most recent month-end is available at www.pimco.com or via (844) 33-PIMCO. Performance is calculated assuming all dividends and distributions are reinvested at prices obtained under the Fund’s dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the purchase or sale of Fund shares. |
| Performance of an index is shown in light of a requirement by the Securities and Exchange Commission that the performance of an appropriate broad-based securities market index be disclosed. However, the Fund is not managed to an index nor should the index be viewed as a “benchmark” for the Fund’s performance. The index is not intended to be indicative of the Fund’s investment strategies, portfolio components or past or future performance. Please see Additional Information Regarding the Funds for a description of the Fund’s principal investment strategies. |
(2) |
Distribution rates are not performance and are calculated by annualizing the most recent distribution per share and dividing by the NAV or market price, as applicable, as of the reported date. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (‘‘ROC’’) of your investment in the Fund. Because the distribution rate may include a ROC, it should not be confused with yield or income. If the Fund estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be provided to shareholders when such information is available. |
(3) |
Represents total effective leverage outstanding, as a percentage of total managed assets. Total effective leverage consists of preferred shares, reverse repurchase agreements and other borrowings, credit default swap notional and floating rate notes issued in tender option bond transactions, as applicable (collectively “Total Effective Leverage”). The Fund may engage in other transactions not included in Total Effective Leverage disclosed above that may give rise to a form of leverage, including certain derivative transactions. For the purpose of calculating Total Effective Leverage outstanding as a percentage of total managed assets, total managed assets refer to total assets (including assets attributable to Total Effective Leverage that may be outstanding) minus accrued liabilities (other than liabilities representing Total Effective Leverage). |
Fund Information as of June 30, 2026
(1)
| Market Price |
$12.03 | |||
| NAV |
$11.50 | |||
| Premium/(Discount) to NAV |
4.61% | |||
| Market Price Distribution Rate (2) |
11.85% | |||
| NAV Distribution Rate (2) |
12.40% | |||
| Total Effective Leverage (3) |
29.07% | |||
Investment Objective and Strategy Overview
PIMCO Corporate & Income Opportunity Fund’s investment objective is to seek maximum total return through a combination of current income and capital appreciation.
Fund Insights at NAV
The following affected performance (on a gross basis) during the reporting period:
| » | Exposure to emerging market debt contributed to performance, as the sector posted positive total returns. |
| » | Holdings related to corporate special situation investments, which include companies undergoing stress, distress, challenges, or significant transition, contributed to performance, as the securities posted positive total returns. |
| » | Exposure to high yield corporate credit contributed to performance, as the sector posted positive total returns. |
| » | Exposure to investment grade corporate credit contributed to performance, as the sector posted positive total returns. |
| » | Long exposure to U.S. duration, particularly in the 3-10-year portion of the curve, detracted from performance as U.S. Treasury yields rose. |
| » | The costs associated with one or more forms of leverage detracted from performance. That said, the net impact on the Fund’s performance of the cost of leverage is generally determined by comparing the return on the additional investments purchased with such leverage against the cost of such leverage. |
| » | There were no other material detractors for this Fund. |
6 |
PIMCO CLOSED-END FUNDS |
Market and Net Asset Value Information |
The Fund’s common shares are listed on the NYSE under the trading or “ticker” symbol “PTY”. The Fund’s common shares commenced trading on the NYSE in December 2002. The conduct of any offering and the issuance of additional common shares pursuant to any offering may have an adverse effect on prices in the secondary market for the Fund’s common shares by increasing the number of shares available, which may put downward pressure on the market price for the common shares. The NAV of the Fund’s common shares will be reduced immediately following an offering by the sales load, commissions and offering expenses paid or reimbursed by the Fund in connection with such offering. The completion of an offering may result in an immediate dilution of the NAV per common share for all existing common shareholders.
The following table sets forth, for each of the periods indicated, the high and low closing market prices of the Fund’s common shares on the NYSE, the high and low NAV per common share and the high and low premium/discount to NAV per common share. See Note 3, Investment Valuation and Fair Value Measurements in the Notes to Financial Statements for information as to how the Fund’s NAV is determined.
PIMCO Corporate & Income Opportunity Fund |
Common share market price (1) |
Common share net asset value |
Premium (discount) as a % of net asset value |
|||||||||||||||||||||
Quarter |
High |
Low |
High |
Low |
High |
Low |
||||||||||||||||||
Quarter ended June 30, 2026 |
$ |
12.35 |
$ |
11.65 |
$ |
11.59 |
$ |
11.29 |
7.11% |
2.54% |
||||||||||||||
Quarter ended March 31, 2026 |
$ |
13.19 |
$ |
11.69 |
$ |
11.98 |
$ |
11.38 |
10.52% |
2.63% |
||||||||||||||
Quarter ended December 31, 2025 |
$ |
14.59 |
$ |
12.79 |
$ |
11.98 |
$ |
11.79 |
22.50% |
7.57% |
||||||||||||||
Quarter ended September 30, 2025 |
$ |
14.45 |
$ |
13.77 |
$ |
11.95 |
$ |
11.60 |
21.69% |
17.42% |
||||||||||||||
Quarter ended June 30, 2025 |
$ |
14.52 |
$ |
12.71 |
$ |
11.72 |
$ |
11.23 |
24.53% |
11.49% |
||||||||||||||
Quarter ended March 31, 2025 |
$ |
14.83 |
$ |
14.22 |
$ |
11.82 |
$ |
11.55 |
26.24% |
21.85% |
||||||||||||||
Quarter ended December 31, 2024 |
$ |
14.81 |
$ |
14.28 |
$ |
11.77 |
$ |
11.59 |
26.41% |
22.41% |
||||||||||||||
Quarter ended September 30, 2024 |
$ |
14.47 |
$ |
14.16 |
$ |
11.73 |
$ |
11.15 |
29.42% |
22.68% |
||||||||||||||
(1) |
Such prices reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions. |
ANNUAL REPORT |
| | JUNE 30, 2026 | 7 |
Summary of Fund Expenses
The following table is intended to assist investors in understanding the fees and expenses (annualized) that an investor in Common Shares of the Fund would bear, directly or indirectly, as a result of an offering. The table reflects the use of leverage attributable to the Fund’s reverse repurchase agreements averaged over the fiscal year ended June 30, 2026 in an amount equal to 17.62% of the Fund’s average total managed assets, including the assets attributable to such leverage (or 21.39% of the Fund’s average total net assets attributable to Common Shares) and shows Fund expenses as a percentage of net assets attributable to Common Shares. The percentages above do not reflect the Fund’s use of other forms of economic leverage, such as credit default swaps or other derivative instruments. The table and example below are based on the Fund’s capital structure as of June 30, 2026. The extent of the Fund’s assets attributable to leverage following an offering, and the Fund’s associated expenses, are likely to vary (perhaps significantly) from these assumptions.
Shareholder Transaction Expenses
| Sales load (as a percentage of offering price) (1) |
[ ]% | |||||||
| Offering Expenses Borne by Common Shareholders (as a percentage of offering price) (2) |
[ ]% | |||||||
| Dividend Reinvestment Plan Fees (3) |
None | |||||||
(1) |
In the event that the Common Shares to which this relates are sold to or through underwriters or dealer managers, a corresponding supplement will disclose the applicable sale load and/or commission. |
(2) |
The related supplement will disclose the estimated amount of offering expense, the offering price and the offering expenses borne by the Fund and indirectly by all of its Common Shareholders as a percentage of the offering price. |
(3) |
You will pay brokerage charges if you direct your broker or the plan agent to sell your Common Shares that you acquired pursuant to a dividend reinvestment plan. You may also pay a pro rata share of brokerage commissions incurred in connection with open market purchase pursuant to the Fund’s Dividend Reinvestment Plan. |
Annual Expenses
Percentage of Net Assets Attributable to Common Shares (reflecting leverage attributable to reverse repurchase agreements) |
||||||||
| Management Fees (1) |
0.65% | |||||||
| Interest Payments on Borrowed Funds (2) |
0.86% | |||||||
| Other Expenses (3) |
0.01% | |||||||
| Total Annual Expenses (4) |
1.52% |
|||||||
1. |
Management Fees include fees payable to the Investment Manager for advisory services and for supervisory, administrative and other services. The Fund pays for the advisory, supervisory and administrative services it requires under what is essentially an all-in fee structure (the “unified management fee”). Pursuant to an investment management agreement, PIMCO is paid a Management Fee of 0.65% of the Fund’s average daily net assets (including daily net assets attributable to any preferred shares of the Fund that may be outstanding). The Fund (and not PIMCO) will be responsible for certain fees and expenses which are, reflected in the table above, that are not covered by the management fee under the investment management agreement. Please see Note 9, Fees and Expenses in the Notes to Financial Statements for an explanation of the unified management fee and definition of “net assets.” |
2. |
Reflects the Fund’s use of leverage in the form of reverse repurchase agreements averaged over the fiscal year ended June 30, 2026, which represented 17.62% of the Fund’s average total managed assets, including the assets attributable to leverage (or 21.39% of the Fund’s average net assets attributable to Common Shares), as of that date, at an annual interest rate cost to the Fund of 3.934%, which is the weighted average interest rate cost during the fiscal year ended June 30, 2026. See “Effects of Leverage.” The actual amount of interest expense borne by the Fund will vary over time in accordance with the level of the Fund’s use of reverse repurchase agreements, dollar rolls and/or borrowings and variations in market interest rates. Borrowing expense is required to be treated as an expense of the Fund for accounting purposes. Any associated income or gains (or losses) realized from leverage obtained through such instruments is not reflected in the Annual Expenses table above, but would be reflected in the Fund’s performance results. |
3. |
“Other Expenses” are estimated for the Fund’s fiscal year ending June 30, 2027. |
4. |
“Interest Payments on Borrowed Funds” are borne by the Fund separately from management fees paid to PIMCO. Excluding these expenses, Total Annual Expenses are 0.66%. |
Example
The following example illustrates the expenses that you would pay on a $1,000 investment in Common Shares of the Fund, assuming (1) that the Fund’s net assets do not increase or decrease, (2) that the Fund incurs total annual expenses of 1.52% of net assets attributable to Common Shares in years 1 through 10 (assuming assets attributable to reverse repurchase agreements representing 17.62% of the Fund’s total managed assets) and (3) a 5% annual return
(1)
: 1 Year |
3 Years |
5 Years |
10 Years |
|||||||||||||||||
| Total Expenses Incurred |
$ | 15 | $ | 48 | $ | 83 | $ | 182 | ||||||||||||
(1) |
The example above should not be considered a representation of future expenses. Actual expenses may be higher or lower than those shown. The example assumes that the estimated Interest Payments on Borrowed Funds |
8 |
PIMCO CLOSED-END FUNDS |
PIMCO Corporate & Income Strategy Fund
Symbol on NYSE - PCN |
Cumulative Returns Through June 30, 2026
$10,000 invested at the end of the month when the Fund commenced operations.
Allocation Breakdown as of June 30, 2026
†
§
| Corporate Bonds & Notes |
30.7% | |||
| Loan Participations and Assignments |
29.2% | |||
| Short-Term Instruments ‡ |
9.5% | |||
| Sovereign Issues |
9.2% | |||
| Asset-Backed Securities |
6.0% | |||
| Non-Agency Mortgage-Backed Securities |
4.3% | |||
| U.S. Government Agencies |
3.2% | |||
| Common Stocks |
3.1% | |||
| Convertible Bonds & Notes |
2.1% | |||
| Preferred Securities |
1.7% | |||
| Other |
1.0% | |||
† |
% of Investments, at value. |
§ |
Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any. |
‡ |
Includes Central Funds Used for Cash Management Purposes. |
| Average Annual Total Return (1) for the period ended June 30, 2026 |
||||||||||||||||||
| 1 Year | 5 Year | 10 Year | Commencement of Operations (12/21/01) |
|||||||||||||||
|
|
Market Price |
5.35% |
1.76% |
7.72% |
10.01% |
|||||||||||||
|
|
NAV |
9.22% |
7.21% |
9.36% |
10.76% |
|||||||||||||
|
|
ICE BofA US High Yield Index |
5.75% |
4.13% |
5.70% |
7.01% ¨ |
|||||||||||||
All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.
¨
It is not possible to invest directly in an unmanaged index.
(1) |
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale of Fund shares. Total return, market price, NAV, market price distribution rate, and NAV distribution rate will fluctuate with changes in market conditions. The NAV presented may differ from the NAV reported for the same period in other Fund materials. Performance current to the most recent month-end is available at www.pimco.com or via (844) 33-PIMCO. Performance is calculated assuming all dividends and distributions are reinvested at prices obtained under the Fund’s dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the purchase or sale of Fund shares. |
| Performance of an index is shown in light of a requirement by the Securities and Exchange Commission that the performance of an appropriate broad-based securities market index be disclosed. However, the Fund is not managed to an index nor should the index be viewed as a “benchmark” for the Fund’s performance. The index is not intended to be indicative of the Fund’s investment strategies, portfolio components or past or future performance. Please see Additional Information Regarding the Funds for a description of the Fund’s principal investment strategies. |
(2) |
Distribution rates are not performance and are calculated by annualizing the most recent distribution per share and dividing by the NAV or market price, as applicable, as of the reported date. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (‘‘ROC’’) of your investment in the Fund. Because the distribution rate may include a ROC, it should not be confused with yield or income. If the Fund estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be provided to shareholders when such information is available. |
(3) |
Represents total effective leverage outstanding, as a percentage of total managed assets. Total effective leverage consists of preferred shares, reverse repurchase agreements and other borrowings, credit default swap notional and floating rate notes issued in tender option bond transactions, as applicable (collectively “Total Effective Leverage”). The Fund may engage in other transactions not included in Total Effective Leverage disclosed above that may give rise to a form of leverage, including certain derivative transactions. For the purpose of calculating Total Effective Leverage outstanding as a percentage of total managed assets, total managed assets refer to total assets (including assets attributable to Total Effective Leverage that may be outstanding) minus accrued liabilities (other than liabilities representing Total Effective Leverage). |
Fund Information as of June 30, 2026
(1)
| Market Price |
$11.95 | |||
| NAV |
$11.50 | |||
| Premium/(Discount) to NAV |
3.91% | |||
| Market Price Distribution Rate (2) |
11.30% | |||
| NAV Distribution Rate (2) |
11.74% | |||
| Total Effective Leverage (3) |
24.80% | |||
Investment Objective and Strategy Overview
PIMCO Corporate & Income Strategy Fund’s primary investment objective is to seek high current income, with secondary objectives of capital preservation and appreciation.
Fund Insights at NAV
The following affected performance (on a gross basis) during the reporting period:
| » | Exposure to emerging market debt contributed to performance, as the sector posted positive total returns. |
| » | Holdings related to corporate special situation investments, which include companies undergoing stress, distress, challenges, or significant transition, contributed to performance, as the securities posted positive total returns. |
| » | Exposure to high yield corporate credit contributed to performance, as the sector posted positive total returns. |
| » | Exposure to residential mortgage credit, primarily U.S. non-agency mortgage-backed securities contributed to performance, as the sector posted positive total returns. |
| » | The costs associated with one or more forms of leverage detracted from performance. That said, the net impact on the Fund’s performance of the cost of leverage is generally determined by comparing the return on the additional investments purchased with such leverage against the cost of such leverage. |
| » | There were no other material detractors for this Fund. |
ANNUAL REPORT |
| | JUNE 30, 2026 | 9 |
Market and Net Asset Value Information |
The Fund’s common shares are listed on the NYSE under the trading or “ticker” symbol “PCN.” The Fund’s common shares commenced trading on the NYSE in December 2001. The conduct of any offering and the issuance of additional common shares pursuant to any offering may have an adverse effect on prices in the secondary market for the Fund’s common shares by increasing the number of shares available, which may put downward pressure on the market price for the common shares. The NAV of the Fund’s common shares will be reduced immediately following an offering by the sales load, commissions and offering expenses paid or reimbursed by the Fund in connection with such offering. The completion of an offering may result in an immediate dilution of the NAV per common share for all existing common shareholders.
The following table sets forth, for each of the periods indicated, the high and low closing market prices of the Fund’s common shares on the NYSE, the high and low NAV per common share and the high and low premium/discount to NAV per common share. See Note 3, Investment Valuation and Fair Value Measurements in the Notes to Financial Statements for information as to how the Fund’s NAV is determined.
PIMCO Corporate & Income Strategy Fund |
Common share market price (1) |
Common share net asset value |
Premium (discount) as a % of net asset value |
|||||||||||||||||||||
Quarter |
High |
Low |
High |
Low |
High |
Low |
||||||||||||||||||
Quarter ended June 30, 2026 |
$ |
12.14 |
$ |
11.57 |
$ |
11.62 |
$ |
11.31 |
4.75% |
1.75% |
||||||||||||||
Quarter ended March 31, 2026 |
$ |
12.88 |
$ |
11.43 |
$ |
12.00 |
$ |
11.41 |
8.47% |
0.18% |
||||||||||||||
Quarter ended December 31, 2025 |
$ |
13.44 |
$ |
12.34 |
$ |
12.01 |
$ |
11.81 |
12.58% |
4.14% |
||||||||||||||
Quarter ended September 30, 2025 |
$ |
13.45 |
$ |
12.52 |
$ |
12.00 |
$ |
11.68 |
12.84% |
6.03% |
||||||||||||||
Quarter ended June 30, 2025 |
$ |
13.64 |
$ |
11.76 |
$ |
11.81 |
$ |
11.37 |
15.79% |
1.91% |
||||||||||||||
Quarter ended March 31, 2025 |
$ |
13.81 |
$ |
13.34 |
$ |
11.96 |
$ |
11.75 |
16.47% |
12.40% |
||||||||||||||
Quarter ended December 31, 2024 |
$ |
14.30 |
$ |
13.32 |
$ |
11.98 |
$ |
11.81 |
19.57% |
12.60% |
||||||||||||||
Quarter ended September 30, 2024 |
$ |
14.19 |
$ |
13.08 |
$ |
11.97 |
$ |
11.38 |
20.02% |
12.85% |
||||||||||||||
(1) |
Such prices reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions. |
10 |
PIMCO CLOSED-END FUNDS |
Summary of Fund Expenses
The following table is intended to assist investors in understanding the fees and expenses (annualized) that an investor in Common Shares of the Fund would bear, directly or indirectly, as a result of an offering. The table reflects the use of leverage attributable to the Fund’s reverse repurchase agreements averaged over the fiscal year ended June 30, 2026 in an amount equal to 14.64% of the Fund’s average total managed assets, including the assets attributable to such leverage (or 17.15% of the Fund’s average total net assets attributable to Common Shares) and shows Fund expenses as a percentage of net assets attributable to Common Shares. The percentages above do not reflect the Fund’s use of other forms of economic leverage, such as credit default swaps or other derivative instruments. The table and example below are based on the Fund’s capital structure as of June 30, 2026. The extent of the Fund’s assets attributable to leverage following an offering, and the Fund’s associated expenses, are likely to vary (perhaps significantly) from these assumptions.
Shareholder Transaction Expenses
Sales load (as a percentage of offering price) (1) |
[ ]% |
|||||||
Offering Expenses Borne by Common Shareholders (as a percentage of offering price) (2) |
[ ]% | |||||||
Dividend Reinvestment Plan Fees (3) |
None | |||||||
(1) |
In the event that the Common Shares to which this relates are sold to or through underwriters or dealer managers, a corresponding supplement will disclose the applicable sale load and/or commission. |
(2) |
The related supplement will disclose the estimated amount of offering expense, the offering price and the offering expenses borne by the Fund and indirectly by all of its Common Shareholders as a percentage of the offering price. |
(3) |
You will pay brokerage charges if you direct your broker or the plan agent to sell your Common Shares that you acquired pursuant to a dividend reinvestment plan. You may also pay a pro rata share of brokerage commissions incurred in connection with open market purchase pursuant to the Fund’s Dividend Reinvestment Plan. |
Annual Expenses
Percentage of Net Assets Attributable to Common Shares (reflecting leverage attributable to reverse repurchase agreements) |
||||||||
Management Fees (1) |
0.81% | |||||||
Interest Payments on Borrowed Funds (2) |
0.71% | |||||||
Other Expenses (3) |
0.01% | |||||||
Total Annual Expenses (4) |
1.53% |
|||||||
1. |
Management Fees include fees payable to the Investment Manager for advisory services and for supervisory, administrative and other services. The Fund pays for the advisory, supervisory and administrative services it requires under what is essentially an all-in fee structure (the “unified management fee”). Pursuant to an investment management agreement, PIMCO is paid a Management Fee of 0.81% of the Fund’s average daily net assets (including daily net assets attributable to any preferred shares of the Fund that may be outstanding). The Fund (and not PIMCO) will be responsible for certain fees and expenses which are, reflected in the table above, that are not covered by the management fee under the investment management agreement. Please see Note 9, Fees and Expenses in the Notes to Financial Statements for an explanation of the unified management fee and definition of “net assets. |
2. |
Reflects the Fund’s use of leverage in the form of reverse repurchase agreements averaged over the fiscal year ended June 30, 2026, which represented 14.64% of the Fund’s average total managed assets, including the assets attributable to leverage (or 17.15% of the Fund’s average net assets attributable to Common Shares), as of that date, at an annual interest rate cost to the Fund of 4.043%, which is the weighted average interest rate cost during the fiscal year ended June 30, 2026. See “Effects of Leverage.” The actual amount of interest expense borne by the Fund will vary over time in accordance with the level of the Fund’s use of reverse repurchase agreements, dollar rolls and/or borrowings and variations in market interest rates. Borrowing expense is required to be treated as an expense of the Fund for accounting purposes. Any associated income or gains (or losses) realized from leverage obtained through such instruments is not reflected in the Annual Expenses table above, but would be reflected in the Fund’s performance results. |
3. |
“Other Expenses” are estimated for the Fund’s fiscal year ending June 30, 2027. |
4. |
“Interest Payments on Borrowed Funds” are borne by the Fund separately from management fees paid to PIMCO. Excluding these expenses, Total Annual Expenses are 0.82%. |
Example
The following example illustrates the expenses that you would pay on a $1,000 investment in Common Shares of the Fund, assuming (1) that the Fund’s net assets do not increase or decrease, (2) that the Fund incurs total annual expenses of 1.53% of net assets attributable to Common Shares in years 1 through 10 (assuming assets attributable to reverse repurchase agreements representing 14.64% of the Fund’s total managed assets) and (3) a 5% annual return
(1)
: 1 Year |
3 Years |
5 Years |
10 Years |
|||||||||||||||||
Total Expenses Incurred |
$ | 16 | $ | 48 | $ | 83 | $ | 182 | ||||||||||||
(1) |
The example above should not be considered a representation of future expenses. Actual expenses may be higher or lower than those shown |
ANNUAL REPORT |
| | JUNE 30, 2026 | 11 |
PIMCO High Income Fund
Symbol on NYSE - PHK |
Cumulative Returns Through June 30, 2026
$10,000 invested at the end of the month when the Fund commenced operations.
Allocation Breakdown as of June 30, 2026
†
§
Corporate Bonds & Notes |
33.5% | |||
Loan Participations and Assignments |
16.6% | |||
Asset-Backed Securities |
9.9% | |||
Sovereign Issues |
8.6% | |||
Short-Term Instruments ‡ |
8.5% | |||
Non-Agency Mortgage-Backed Securities |
7.1% | |||
Common Stocks |
4.2% | |||
U.S. Government Agencies |
3.5% | |||
Preferred Securities |
3.2% | |||
Convertible Bonds & Notes |
2.7% | |||
Municipal Bonds & Notes |
1.8% | |||
Other |
0.4% | |||
† |
% of Investments, at value. |
§ |
Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any. |
‡ |
Includes Central Funds Used for Cash Management Purposes. |
| Average Annual Total Return (1) for the period ended June 30, 2026 |
||||||||||||||||||
| 1 Year | 5 Year | 10 Year | Commencement of Operations (04/30/03) |
|||||||||||||||
|
|
Market Price |
9.88% |
4.25% |
4.47% |
8.00% |
|||||||||||||
|
|
NAV |
11.11% |
7.00% |
9.73% |
10.53% |
|||||||||||||
|
|
ICE BofA US High Yield Index |
5.75% |
4.13% |
5.70% |
6.94% |
|||||||||||||
All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.
It is not possible to invest directly in an unmanaged index.
(1) |
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale of Fund shares. Total return, market price, NAV, market price distribution rate, and NAV distribution rate will fluctuate with changes in market conditions. The NAV presented may differ from the NAV reported for the same period in other Fund materials. Performance current to the most recent month-end is available at www.pimco.com or via (844) 33-PIMCO. Performance is calculated assuming all dividends and distributions are reinvested at prices obtained under the Fund’s dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the purchase or sale of Fund shares. |
Performance of an index is shown in light of a requirement by the Securities and Exchange Commission that the performance of an appropriate broad-based securities market index be disclosed. However, the Fund is not managed to an index nor should the index be viewed as a “benchmark” for the Fund’s performance. The index is not intended to be indicative of the Fund’s investment strategies, portfolio components or past or future performance. Please see Additional Information Regarding the Funds for a description of the Fund’s principal investment strategies. |
(2) |
Distribution rates are not performance and are calculated by annualizing the most recent distribution per share and dividing by the NAV or market price, as applicable, as of the reported date. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (‘‘ROC’’) of your investment in the Fund. Because the distribution rate may include a ROC, it should not be confused with yield or income. If the Fund estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be provided to shareholders when such information is available. |
(3) |
Represents total effective leverage outstanding, as a percentage of total managed assets. Total effective leverage consists of preferred shares, reverse repurchase agreements and other borrowings, credit default swap notional and floating rate notes issued in tender option bond transactions, as applicable (collectively “Total Effective Leverage”). The Fund may engage in other transactions not included in Total Effective Leverage disclosed above that may give rise to a form of leverage, including certain derivative transactions. For the purpose of calculating Total Effective Leverage outstanding as a percentage of total managed assets, total managed assets refer to total assets (including assets attributable to Total Effective Leverage that may be outstanding) minus accrued liabilities (other than liabilities representing Total Effective Leverage). |
Fund Information as of June 30, 2026
(1)
Market Price |
$ |
|||
NAV |
$ |
|||
Premium/(Discount) to NAV |
||||
Market Price Distribution Rate (2) |
12.36% | |||
NAV Distribution Rate (2) |
12.72% | |||
Total Effective Leverage (3) |
30.93% | |||
Investment Objective and Strategy Overview
PIMCO High Income Fund’s primary investment objective is to seek high current income, with capital appreciation as a secondary objective.
Fund Insights at NAV
The following affected performance (on a gross basis) during the reporting period:
| » | Exposure to emerging market debt contributed to performance, as the sector posted positive total returns. |
| » | Holdings related to corporate special situation investments, which include companies undergoing stress, distress, challenges, or significant transition, contributed to performance, as the securities posted positive total returns. |
| » | Exposure to high yield corporate credit contributed to performance, as the sector posted positive total returns. |
| » | Exposure to residential mortgage credit, primarily U.S. non-agency mortgage-backed securities, contributed to performance, as the sector posted positive total returns. |
| » | The costs associated with one or more forms of leverage detracted from performance. That said, the net impact on the Fund’s performance of the cost of leverage is generally determined by comparing the return on the additional investments purchased with such leverage against the cost of such leverage. |
| » | Long exposure to U.S. duration, particularly in the 3-10-year portion of the curve, detracted from performance, as U.S. Treasury yields rose. |
| » | There were no other material detractors for this Fund. |
12 |
PIMCO CLOSED-END FUNDS |
Market and Net Asset Value Information |
The Fund’s common shares are listed on the NYSE under the trading or “ticker” symbol “PHK”. The Fund’s common shares commenced trading on the NYSE in April 2003. The conduct of any offering and the issuance of additional common shares pursuant to any offering may have an adverse effect on prices in the secondary market for the Fund’s common shares by increasing the number of shares available, which may put downward pressure on the market price for the common shares. The NAV of the Fund’s common shares will be reduced immediately following an offering by the sales load, commissions and offering expenses paid or reimbursed by the Fund in connection with such offering. The completion of an offering may result in an immediate dilution of the NAV per common share for all existing common shareholders.
The following table sets forth, for each of the periods indicated, the high and low closing market prices of the Fund’s common shares on the NYSE, the high and low NAV per common share and the high and low premium/discount to NAV per common share. See Note 3, Investment Valuation and Fair Value Measurements in the Notes to Financial Statements for information as to how the Fund’s NAV is determined.
PIMCO High Income Fund |
Common share market price (1) |
Common share net asset value |
Premium (discount) as a % of net asset value |
|||||||||||||||||||||
Quarter |
High |
Low |
High |
Low |
High |
Low |
||||||||||||||||||
Quarter ended June 30, 2026 |
$ |
$ |
$ |
$ |
||||||||||||||||||||
Quarter ended March 31, 2026 |
$ |
$ |
$ |
$ |
( |
|||||||||||||||||||
Quarter ended December 31, 2025 |
$ |
$ |
$ |
$ |
||||||||||||||||||||
Quarter ended September 30, 2025 |
$ |
$ |
$ |
$ |
||||||||||||||||||||
Quarter ended June 30, 2025 |
$ |
$ |
$ |
$ |
( |
|||||||||||||||||||
Quarter ended March 31, 2025 |
$ |
$ |
$ |
$ |
||||||||||||||||||||
Quarter ended December 31, 2024 |
$ |
$ |
$ |
$ |
||||||||||||||||||||
Quarter ended September 30, 2024 |
$ |
$ |
$ |
$ |
||||||||||||||||||||
(1) |
mark-up, mark-down or commission and may not represent actual transactions. |
ANNUAL REPORT |
| | JUNE 30, 2026 | 13 |
Summary of Fund Expenses
Shareholder Transaction Expenses
Sales load ( (1) |
||||||||
Offering Expenses Borne by Common Shareholders ( (2) |
||||||||
Dividend Reinvestment Plan Fees (3) |
||||||||
(1) |
In the event that the Common Shares to which this relates are sold to or through underwriters or dealer managers, a corresponding supplement will disclose the applicable sale load and/or commission. |
(2) |
The related supplement will disclose the estimated amount of offering expense, the offering price and the offering expenses borne by the Fund and indirectly by all of its Common Shareholders as a percentage of the offering price. |
(3) |
You will pay brokerage charges if you direct your broker or the plan agent to sell your Common Shares that you acquired pursuant to a dividend reinvestment plan. You may also pay a pro rata share of brokerage commissions incurred in connection with open market purchase pursuant to the Fund’s Dividend Reinvestment Plan. |
Annual Expenses
Percentage of Net Assets Attributable to Common Shares (reflecting leverage attributable to reverse repurchase agreements) |
||||||||
Management Fees (1) |
||||||||
Interest Payments on Borrowed Funds (2) |
||||||||
Other Expenses (3) |
||||||||
Total Annual Expenses (4) |
||||||||
1. |
Management Fees include fees payable to the Investment Manager for advi s ory services and for supervisory, administrative and other services. The Fund pays for the advisory, supervisory and administrative services it requires under what is essentially an all-in fee structure (the “unified management fee”). Pursuant to an investment management agreement, PIMCO is paid a Management Fee of 0.76% of the Fund’s average daily net assets (including daily net assets attributable to any preferred shares of the Fund that may be outstanding). The Fund (and not PIMCO) will be responsible for certain fees and expenses which are, reflected in the table above, that are not covered by the management fee under the investment management agreement. Please see Note 9, Fees and Expenses in the Notes to Financial Statements for an explanation of the unified management fee and definition of “net assets.” |
2. |
Reflects the Fund’s use of leverage in the form of reverse repurchase agreements averaged over the fiscal year ended June 30, 2026, which represented 19.97% of the Fund’s average total managed assets, including the assets attributable to leverage (or 24.95% of the Fund’s average net assets attributable to Common Shares), as of that date, at an annual interest rate cost to the Fund of 4.099%, which is the weighted average interest rate cost during the fiscal year ended June 30, 2026. See “Effects of Leverage.” The actual amount of interest expense borne by the Fund will vary over time in accordance with the level of the Fund’s use of reverse repurchase agreements, dollar rolls and/or borrowings and variations in market interest rates. Borrowing expense is required to be treated as an expense of the Fund for accounting purposes. Any associated income or gains (or losses) realized from leverage obtained through such instruments is not reflected in the Annual Expenses table above, but would be reflected in the Fund’s performance results. |
3. |
4. |
“Interest Payments on Borrowed Funds” are borne by the Fund separately from management fees paid to PIMCO. Excluding these expenses, Total Annual Expenses are 0.77%. |
Example
The following example illustrates the expenses that you would pay on a $1,000 investment in Common Shares of the Fund, assuming (1) that the Fund’s net assets do not increase or decrease, (2) that the Fund incurs total annual expenses of 1.78% of net assets attributable to Common Shares in years 1 through 10 (assuming assets attributable to reverse repurchase agreements representing 19.97% of the Fund’s total managed assets) and (3) a 5% annual return
(1)
: 1 Year |
3 Years |
5 Years |
10 Years |
|||||||||||||||||
Total Expenses Incurred |
$ | |
$ | |
$ | |
$ | |
||||||||||||
(1) |
T he example above should not be considered a representation of future expenses. Actual expenses may be higher or lower than those shown. theti cal 5% annual return shown in the example. The example does not include commissions or estimated offering expenses, which would cause the expenses shown in the example to increase. In connection with an offering of Common Shares, the prospectus supplement will set forth an example including sales load and estimated offering costs. |
14 |
PIMCO CLOSED-END FUNDS |
PIMCO Income Strategy Fund
Symbol on NYSE - PFL |
Cumulative Returns Through June 30, 2026
$10,000 invested at the end of the month when the Fund commenced operations.
Allocation Breakdown as of June 30, 2026
†
§
Corporate Bonds & Notes |
29.4% | |||
Loan Participations and Assignments |
26.0% | |||
Short-Term Instruments ‡ |
10.9% | |||
Non-Agency Mortgage-Backed Securities |
10.6% | |||
Asset-Backed Securities |
8.1% | |||
Common Stocks |
5.8% | |||
Sovereign Issues |
2.6% | |||
Preferred Securities |
2.5% | |||
U.S. Government Agencies |
1.9% | |||
Other |
2.2% | |||
† |
% of Investments, at value. |
§ |
Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any. |
‡ |
Includes Central Funds Used for Cash Management Purposes. |
| Average Annual Total Return (1) for the period ended June 30, 2026 |
||||||||||||||||||
| 1 Year | 5 Year | 10 Year | Commencement of Operations (08/29/03) |
|||||||||||||||
|
|
Market Price |
6.82% |
2.05% |
8.48% |
6.78% |
|||||||||||||
|
|
NAV |
8.23% |
5.28% |
8.27% |
6.98% |
|||||||||||||
|
|
ICE BofA US High Yield Index |
5.75% |
4.13% |
5.70% |
6.87% ¨ |
|||||||||||||
All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.
¨
It is not possible to invest directly in an unmanaged index.
(1) |
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale of Fund shares. Total return, market price, NAV, market price distribution rate, and NAV distribution rate will fluctuate with changes in market conditions. The NAV presented may differ from the NAV reported for the same period in other Fund materials. Performance current to the most recent month-end is available at www.pimco.com or via (844) 33-PIMCO. Performance is calculated assuming all dividends and distributions are reinvested at prices obtained under the Fund’s dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the purchase or sale of Fund shares. |
Performance of an index is shown in light of a requirement by the Securities and Exchange Commission that the performance of an appropriate broad-based securities market index be disclosed. However, the Fund is not managed to an index nor should the index be viewed as a “benchmark” for the Fund’s performance. The index is not intended to be indicative of the Fund’s investment strategies, portfolio components or past or future performance. Please see Additional Information Regarding the Funds for a description of the Fund’s principal investment strategies. |
(2) |
Distribution rates are not performance and are calculated by annualizing the most recent distribution per share and dividing by the NAV or market price, as applicable, as of the reported date. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (‘‘ROC’’) of your investment in the Fund. Because the distribution rate may include a ROC, it should not be confused with yield or income. If the Fund estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be provided to shareholders when such information is available. |
(3) |
Represents total effective leverage outstanding, as a percentage of total managed assets. Total effective leverage consists of preferred shares, reverse repurchase agreements and other borrowings, credit default swap notional and floating rate notes issued in tender option bond transactions, as applicable (collectively “Total Effective Leverage”). The Fund may engage in other transactions not included in Total Effective Leverage disclosed above that may give rise to a form of leverage, including certain derivative transactions. For the purpose of calculating Total Effective Leverage outstanding as a percentage of total managed assets, total managed assets refer to total assets (including assets attributable to Total Effective Leverage that may be outstanding) minus accrued liabilities (other than liabilities representing Total Effective Leverage). |
Fund Information as of June 30, 2026
(1)
Market Price |
$7.88 | |||
NAV |
$7.64 | |||
Premium/(Discount) to NAV |
3.14% | |||
Market Price Distribution Rate (2) |
12.40% | |||
NAV Distribution Rate (2) |
12.79% | |||
Total Effective Leverage (3) |
5.48% | |||
Investment Objective and Strategy Overview
PIMCO Income Strategy Fund’s investment objective is to seek high current income, consistent with the preservation of capital.
Fund Insights at NAV
The following affected performance (on a gross basis) during the reporting period:
| » | Holdings related to corporate special situation investments, which include companies undergoing stress, distress, challenges, or significant transition, contributed to performance, as the securities posted positive total returns. |
| » | Exposure to emerging market debt contributed to performance, as the sector posted positive total returns. |
| » | Exposure to high yield corporate credit contributed to performance, as the sector posted positive total returns. |
| » | Exposure to bank loans contributed to performance, as the sector posted positive total returns. |
| » | Long exposure to U.S. duration, particularly in the 3-10-year portion of the curve, detracted from performance, as U.S. Treasury yields rose. |
| » | The costs associated with one or more forms of leverage detracted from performance. That said, the net impact on the Fund’s performance of the cost of leverage is generally determined by comparing the return on the additional investments purchased with such leverage against the cost of such leverage. |
| » | There were no other material detractors for this Fund. |
ANNUAL REPORT |
| | JUNE 30, 2026 | 15 |
Market and Net Asset Value Information |
The Fund’s common shares are listed on the NYSE under the trading or “ticker” symbol “PFL.” The Fund’s common shares commenced trading on the NYSE in August 2003. The conduct of any offering and the issuance of additional common shares pursuant to any offering may have an adverse effect on prices in the secondary market for the Fund’s common shares by increasing the number of shares available, which may put downward pressure on the market price for the common shares. The NAV of the Fund’s common shares will be reduced immediately following an offering by the sales load, commissions and offering expenses paid or reimbursed by the Fund in connection with such offering. The completion of an offering may result in an immediate dilution of the NAV per common share for all existing common shareholders.
The following table sets forth, for each of the periods indicated, the high and low closing market prices of the Fund’s common shares on the NYSE, the high and low NAV per common share and the high and low premium/discount to NAV per common share. See Note 3, Investment Valuation and Fair Value Measurements in the Notes to Financial Statements for information as to how the Fund’s NAV is determined.
PIMCO Income Strategy Fund |
Common share market price (1) |
Common share net asset value |
Premium (discount) as a % of net asset value |
|||||||||||||||||||||
Quarter |
High |
Low |
High |
Low |
High |
Low |
||||||||||||||||||
Quarter ended June 30, 2026 |
$ |
8.09 |
$ |
7.57 |
$ |
7.78 |
$ |
7.57 |
4.53% |
(0.13)% |
||||||||||||||
Quarter ended March 31, 2026 |
$ |
8.49 |
$ |
7.71 |
$ |
8.00 |
$ |
7.65 |
7.53% |
0.65% |
||||||||||||||
Quarter ended December 31, 2025 |
$ |
8.65 |
$ |
8.20 |
$ |
8.05 |
$ |
7.93 |
7.99% |
3.40% |
||||||||||||||
Quarter ended September 30, 2025 |
$ |
8.57 |
$ |
8.25 |
$ |
8.07 |
$ |
7.89 |
6.78% |
3.63% |
||||||||||||||
Quarter ended June 30, 2025 |
$ |
8.58 |
$ |
7.76 |
$ |
8.02 |
$ |
7.73 |
6.98% |
(0.89)% |
||||||||||||||
Quarter ended March 31, 2025 |
$ |
8.60 |
$ |
8.38 |
$ |
8.15 |
$ |
8.01 |
7.37% |
3.08% |
||||||||||||||
Quarter ended December 31, 2024 |
$ |
8.77 |
$ |
8.27 |
$ |
8.23 |
$ |
8.09 |
6.95% |
1.97% |
||||||||||||||
Quarter ended September 30, 2024 |
$ |
8.57 |
$ |
8.10 |
$ |
8.22 |
$ |
7.82 |
4.90% |
1.00% |
||||||||||||||
(1) |
Such prices reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions. |
16 |
PIMCO CLOSED-END FUNDS |
Summary of Fund Expenses
The following table is intended to assist investors in understanding the fees and expenses (annualized) that an investor in Common Shares of the Fund would bear, directly or indirectly, as a result of an offering. The table reflects the use of leverage attributable to the Fund’s reverse repurchase agreements averaged over the fiscal year ended June 30, 2026 in an amount equal to 7.68% of the Fund’s average total managed assets, including the assets attributable to such leverage (or 8.32% of the Fund’s average total net assets attributable to Common Shares) and shows Fund expenses as a percentage of net assets attributable to Common Shares. The percentages above do not reflect the Fund’s use of other forms of economic leverage, such as credit default swaps or other derivative instruments. The table and example below are based on the Fund’s capital structure as of June 30, 2026. The extent of the Fund’s assets attributable to leverage following an offering, and the Fund’s associated expenses, are likely to vary (perhaps significantly) from these assumptions.
Shareholder Transaction Expenses
Sales load (as a percentage of offering price) (1) |
[ ]% | |||||||
Offering Expenses Borne by Common Shareholders (as a percentage of offering price) (2) |
[ ]% | |||||||
Dividend Reinvestment Plan Fees (3) |
None | |||||||
(1) |
In the event that the Common Shares to which this relates are sold to or through underwriters or dealer managers, a corresponding supplement will disclose the applicable sale load and/or commission. |
(2) |
The related supplement will disclose the estimated amount of offering expense, the offering price and the offering expenses borne by the Fund and indirectly by all of its Common Shareholders as a percentage of the offering price. |
(3) |
You will pay brokerage charges if you direct your broker or the plan agent to sell your Common Shares that you acquired pursuant to a dividend reinvestment plan. You may also pay a pro rata share of brokerage commissions incurred in connection with open market purchase pursuant to the Fund’s Dividend Reinvestment Plan. |
Annual Expenses
Percentage of Net Assets Attributable to Common Shares (reflecting leverage attributable to reverse repurchase agreements) |
||||||||
Management Fees (1) |
0.93 % |
|||||||
Interest Payments on Borrowed Funds (2) |
0.35 % |
|||||||
Other Expenses (3) |
0.01% | |||||||
Total Annual Expenses (4) |
1.29% |
|||||||
1. |
Management Fees include fees payable to the Investment Manager for advisory services and for supervisory, administrative and other services. The Fund pays for the advisory, supervisory and administrative services it requires under what is essentially an all-in fee structure (the “unified management fee”). Pursuant to an investment management agreement, PIMCO is paid a Management Fee of 0.86% of the Fund’s average weekly total managed assets. Total managed assets include total assets of the Fund (including any assets attributable to any preferred shares or other forms of leverage that may be outstanding) minus accrued liabilities (other than liabilities representing leverage). The Fund (and not PIMCO) will be responsible for certain fees and expenses which are, reflected in the table above, that are not covered by the management fee under the investment management agreement. Please see Note 9, |
Fees and Expenses in the Notes to Financial Statements for an explanation of the unified management fee and definition of “total managed assets.” |
2. |
Reflects the Fund’s use of leverage in the form of reverse repurchase agreements averaged over the fiscal year ended June 30, 2026, which represented 7.68% of the Fund’s average total managed assets, including the assets attributable to leverage (or 8.32% of the Fund’s average net assets attributable to Common Shares), as of that date, at an annual interest rate cost to the Fund of 4.094%, which is the weighted average interest rate cost during the fiscal year ended June 30, 2026. See “Effects of Leverage.” The actual amount of interest expense borne by the Fund will vary over time in accordance with the level of the Fund’s use of reverse repurchase agreements, dollar rolls and/or borrowings and variations in market interest rates. Borrowing expense is required to be treated as an expense of the Fund for accounting purposes. Any associated income or gains (or losses) realized from leverage obtained through such instruments is not reflected in the Annual Expenses table above, but would be reflected in the Fund’s performance results. |
3. |
“Other Expenses” are estimated for the Fund’s fiscal year ending June 30, 2027. |
4. |
“Interest Payments on Borrowed Funds” are borne by the Fund separately from management fees paid to PIMCO. Excluding these expenses, Total Annual Expenses are 0.94%. |
Example
The following example illustrates the expenses that you would pay on a $1,000 investment in Common Shares of the Fund, assuming (1) that the Fund’s net assets do not increase or decrease, (2) that the Fund incurs total annual expenses of 1.29% of net assets attributable to Common Shares in years 1 through 10 (assuming assets attributable to reverse repurchase agreements representing 7.68% of the Fund’s total managed assets) and (3) a 5% annual return
(1)
: 1 Year |
3 Years |
5 Years |
10 Years |
|||||||||||||||||
Total Expenses Incurred |
$ | 13 | $ | 41 | $ | 71 | $ | 156 | ||||||||||||
(1) |
The example above should not be considered a representation of future expenses. Actual expenses may be higher or lower than those shown. |
ANNUAL REPORT |
| | JUNE 30, 2026 | 17 |
PIMCO Income Strategy Fund II
Symbol on NYSE - PFN |
Cumulative Returns Through June 30, 2026
$10,000 invested at the end of the month when the Fund commenced operations.
Allocation Breakdown as of June 30, 2026
†
§
Corporate Bonds & Notes |
32.6% | |||
Loan Participations and Assignments |
27.5% | |||
Sovereign Issues |
8.5% | |||
Short-Term Instruments ‡ |
8.4% | |||
Non-Agency Mortgage-Backed Securities |
6.4% | |||
Common Stocks |
4.8% | |||
Asset-Backed Securities |
3.8% | |||
U.S. Government Agencies |
2.9% | |||
Convertible Bonds & Notes |
2.1% | |||
Preferred Securities |
1.8% | |||
Other |
1.2% | |||
† |
% of Investments, at value. |
§ |
Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any. |
‡ |
Includes Central Funds Used for Cash Management Purposes. |
| Average Annual Total Return (1) for the period ended June 30, 2026 |
||||||||||||||||||
| 1 Year | 5 Year | 10 Year | Commencement of Operations (10/29/04) |
|||||||||||||||
|
|
Market Price |
8.88% |
3.05% |
8.65% |
6.32% |
|||||||||||||
|
|
NAV |
10.39% |
5.83% |
8.45% |
6.46% |
|||||||||||||
|
|
ICE BofA US High Yield Index |
5.75% |
4.13% |
5.70% |
6.45% ¨ |
|||||||||||||
All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.
¨
It is not possible to invest directly in an unmanaged index.
(1) |
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale of Fund shares. Total return, market price, NAV, market price distribution rate, and NAV distribution rate will fluctuate with changes in market conditions. The NAV presented may differ from the NAV reported for the same period in other Fund materials. Performance current to the most recent month-end is available at www.pimco.com or via (844) 33-PIMCO. Performance is calculated assuming all dividends and distributions are reinvested at prices obtained under the Fund’s dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the purchase or sale of Fund shares. |
Performance of an index is shown in light of a requirement by the Securities and Exchange Commission that the performance of an appropriate broad-based securities market index be disclosed. However, the Fund is not managed to an index nor should the index be viewed as a “benchmark” for the Fund’s performance. The index is not intended to be indicative of the Fund’s investment strategies, portfolio components or past or future performance. Please see Additional Information Regarding the Funds for a description of the Fund’s principal investment strategies. |
(2) |
Distribution rates are not performance and are calculated by annualizing the most recent distribution per share and dividing by the NAV or market price, as applicable, as of the reported date. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (‘‘ROC’’) of your investment in the Fund. Because the distribution rate may include a ROC, it should not be confused with yield or income. If the Fund estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be provided to shareholders when such information is available. |
(3) |
Represents total effective leverage outstanding, as a percentage of total managed assets. Total effective leverage consists of preferred shares, reverse repurchase agreements and other borrowings, credit default swap notional and floating rate notes issued in tender option bond transactions, as applicable (collectively “Total Effective Leverage”). The Fund may engage in other transactions not included in Total Effective Leverage disclosed above that may give rise to a form of leverage, including certain derivative transactions. For the purpose of calculating Total Effective Leverage outstanding as a percentage of total managed assets, total managed assets refer to total assets (including assets attributable to Total Effective Leverage that may be outstanding) minus accrued liabilities (other than liabilities representing Total Effective Leverage). |
Fund Information as of June 30, 2026
(1)
Market Price |
$7.13 | |||
NAV |
$6.94 | |||
Premium/(Discount) to NAV |
2.74% | |||
Market Price Distribution Rate (2) |
12.08% | |||
NAV Distribution Rate (2) |
12.41% | |||
Total Effective Leverage (3) |
30.93% | |||
Investment Objective and Strategy Overview
PIMCO Income Strategy Fund II’s investment objective is to seek high current income, consistent with the preservation of capital.
Fund Insights at NAV
The following affected performance (on a gross basis) during the reporting period:
| » | Holdings related to corporate special situation investments, which include companies undergoing stress, distress, challenges, or significant transition, contributed to performance, as the securities posted positive total returns. |
| » | Exposure to emerging market debt contributed to performance, as the sector posted positive total returns. |
| » | Exposure to high yield corporate credit contributed to performance, as the sector posted positive total returns. |
| » | Exposure to residential mortgage credit, primarily U.S. non-agency mortgage-backed securities contributed to performance, as the sector posted positive total returns. |
| » | Long exposure to U.S. duration, particularly in the 3-10-year portion of the curve, detracted from performance, as U.S. Treasury yields rose. |
| » | The costs associated with one or more forms of leverage detracted from performance. That said, the net impact on the Fund’s performance of the cost of leverage is generally determined by comparing the return on the additional investments purchased with such leverage against the cost of such leverage. |
| » | There were no other material detractors for this Fund. |
18 |
PIMCO CLOSED-END FUNDS |
Market and Net Asset Value Information |
The Fund’s common shares are listed on the NYSE under the trading or “ticker” symbol “PFN”. The Fund’s common shares commenced trading on the NYSE in October 2004. The conduct of any offering and the issuance of additional common shares pursuant to any offering may have an adverse effect on prices in the secondary market for the Fund’s common shares by increasing the number of shares available, which may put downward pressure on the market price for the common shares. The NAV of the Fund’s common shares will be reduced immediately following an offering by the sales load, commissions and offering expenses paid or reimbursed by the Fund in connection with such offering. The completion of an offering may result in an immediate dilution of the NAV per common share for all existing common shareholders.
The following table sets forth, for each of the periods indicated, the high and low closing market prices of the Fund’s common shares on the NYSE, the high and low NAV per common share and the high and low premium/discount to NAV per common share. See Note 3, Investment Valuation and Fair Value Measurements in the Notes to Financial Statements for information as to how the Fund’s NAV is determined.
PIMCO Income Strategy Fund II |
Common share market price (1) |
Common share net asset value |
Premium (discount) as a % of net asset value |
|||||||||||||||||||||
Quarter |
High |
Low |
High |
Low |
High |
Low |
||||||||||||||||||
Quarter ended June 30, 2026 |
$ |
7.19 |
$ |
6.77 |
$ |
7.00 |
$ |
6.81 |
3.30% |
(1.46)% |
||||||||||||||
Quarter ended March 31, 2026 |
$ |
7.54 |
$ |
6.57 |
$ |
7.24 |
$ |
6.84 |
4.47% |
(4.09)% |
||||||||||||||
Quarter ended December 31, 2025 |
$ |
7.64 |
$ |
7.29 |
$ |
7.26 |
$ |
7.12 |
6.28% |
1.53% |
||||||||||||||
Quarter ended September 30, 2025 |
$ |
7.67 |
$ |
7.37 |
$ |
7.22 |
$ |
7.02 |
6.39% |
4.58% |
||||||||||||||
Quarter ended June 30, 2025 |
$ |
7.56 |
$ |
6.87 |
$ |
7.10 |
$ |
6.82 |
6.48% |
(0.87)% |
||||||||||||||
Quarter ended March 31, 2025 |
$ |
7.64 |
$ |
7.41 |
$ |
7.24 |
$ |
7.10 |
6.20% |
3.46% |
||||||||||||||
Quarter ended December 31, 2024 |
$ |
7.72 |
$ |
7.33 |
$ |
7.26 |
$ |
7.16 |
6.78% |
2.23% |
||||||||||||||
Quarter ended September 30, 2024 |
$ |
7.62 |
$ |
7.02 |
$ |
7.24 |
$ |
6.91 |
5.42% |
1.45% |
||||||||||||||
(1) |
Such prices reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions. |
ANNUAL REPORT |
| | JUNE 30, 2026 | 19 |
Summary of Fund Expenses
The following table is intended to assist investors in understanding the fees and expenses (annualized) that an investor in Common Shares of the Fund would bear, directly or indirectly, as a result of an offering. The table reflects the use of leverage attributable to the Fund’s reverse repurchase agreements averaged over the fiscal year ended June 30, 2026 in an amount equal to 23.36% of the Fund’s average total managed assets, including the assets attributable to such leverage (or 30.47% of the Fund’s average total net assets attributable to Common Shares) and shows Fund expenses as a percentage of net assets attributable to Common Shares. The percentages above do not reflect the Fund’s use of other forms of economic leverage, such as credit default swaps or other derivative instruments. The table and example below are based on the Fund’s capital structure as of June 30, 2026. The extent of the Fund’s assets attributable to leverage following an offering, and the Fund’s associated expenses, are likely to vary (perhaps significantly) from these assumptions.
Shareholder Transaction Expenses
Sales load (as a percentage of offering price) (1) |
[ ]% | |||||||
Offering Expenses Borne by Common Shareholders (as a percentage of offering price) (2) |
[ ]% | |||||||
Dividend Reinvestment Plan Fees (3) |
None | |||||||
(1) |
In the event that the Common Shares to which this relates are sold to or through underwriters or dealer managers, a corresponding supplement will disclose the applicable sale load and/or commission. |
(2) |
The related supplement will disclose the estimated amount of offering expense, the offering price and the offering expenses borne by the Fund and indirectly by all of its Common Shareholders as a percentage of the offering price. |
(3) |
You will pay brokerage charges if you direct your broker or the plan agent to sell your Common Shares that you acquired pursuant to a dividend reinvestment plan. You may also pay a pro rata share of brokerage commissions incurred in connection with open market purchase pursuant to the Fund’s Dividend Reinvestment Plan. |
Annual Expenses
Percentage of Net Assets Attributable to Common Shares (reflecting leverage attributable to reverse repurchase agreements) |
||||||||
Management Fees (1) |
1.08% | |||||||
Interest Payments on Borrowed Funds (2) |
1.23% | |||||||
Other Expenses (3) |
0.02% | |||||||
Total Annual Expenses (4) |
2.33% |
|||||||
1. |
Management Fees include fees payable to the Investment Manager for advisory services and for supervisory, administrative and other services. The Fund pays for the advisory, supervisory and administrative services it requires under what is essentially an all-in fee structure (the “unified management fee”). Pursuant to an investment management agreement, PIMCO is paid a Management Fee of 0.83% of the Fund’s average weekly total managed assets. Total managed assets include total assets of the Fund (including any assets attributable to any preferred shares or other forms of leverage that may be outstanding) minus accrued liabilities (other than liabilities representing leverage). The Fund (and not PIMCO) will be responsible for certain fees and expenses which are, reflected in the table above, that are not covered by the management fee under the investment management agreement. Please see Note 9, |
Fees and Expenses in the Notes to Financial Statements for an explanation of the unified management fee and definition of “total managed assets.” |
2. |
Reflects the Fund’s use of leverage in the form of reverse repurchase agreements averaged over the fiscal year ended June 30, 2026, which represented 23.36% of the Fund’s average total managed assets, including the assets attributable to leverage (or 30.47% of the Fund’s average net assets attributable to Common Shares), as of that date, at an annual interest rate cost to the Fund of 3.956%, which is the weighted average interest rate cost during the fiscal year ended June 30, 2026. See “Effects of Leverage.” The actual amount of interest expense borne by the Fund will vary over time in accordance with the level of the Fund’s use of reverse repurchase agreements, dollar rolls and/or borrowings and variations in market interest rates. Borrowing expense is required to be treated as an expense of the Fund for accounting purposes. Any associated income or gains (or losses) realized from leverage obtained through such instruments is not reflected in the Annual Expenses table above, but would be reflected in the Fund’s performance results. |
3. |
“Other Expenses” are estimated for the Fund’s fiscal year ending June 30, 2027. |
4. |
“Interest Payments on Borrowed Funds” are borne by the Fund separately from management fees paid to PIMCO. Excluding these expenses, Total Annual Expenses are 1.10%. |
Example
The following example illustrates the expenses that you would pay on a $1,000 investment in Common Shares of the Fund, assuming (1) that the Fund’s net assets do not increase or decrease, (2) that the Fund incurs total annual expenses of 2.33% of net assets attributable to Common Shares in years 1 through 10 (assuming assets attributable to reverse repurchase agreements representing 23.36% of the Fund’s total managed assets) and (3) a 5% annual return
(1)
: 1 Year |
3 Years |
5 Years |
10 Years |
|||||||||||||||||
Total Expenses Incurred |
$ | 24 | $ | 73 | $ | 124 | $ | 266 | ||||||||||||
(1) |
The example above should not be considered a representation of future expenses. Actual expenses may be higher or lower than those shown. |
20 |
PIMCO CLOSED-END FUNDS |
Index Descriptions |
Index* |
Index Description | |
| ICE BofA US High Yield Index | ICE BofA U.S. High Yield Index tracks the performance of below investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market. Qualifying bonds must have at least one year remaining term to maturity, a fixed coupon schedule and a minimum amount outstanding of USD $100 million. Bonds must be rated below investment grade based on a composite of Moody’s and S&P. | |
* It is not possible to invest directly in an unmanaged index.
ANNUAL REPORT |
| | JUNE 30, 2026 | 21 |
Financial Highlights |
Investment Operations |
Less Distributions to ARPS (c) |
Less Distributions to Common Shareholders (d) |
||||||||||||||||||||||||||||||||||||||
| Selected Per Share Data for the Year or Period Ended^: | Net Asset Value Beginning of Year or Period (a) |
Net Investment Income (Loss) (b) |
Net Realized/ Unrealized Gain (Loss) |
From Net Investment Income |
From Net Realized Capital Gains |
Net Increase (Decrease) in Net Assets Applicable to Common Shareholders Resulting from Operations |
From Net Investment Income |
From Net Realized Capital Gains |
Tax Basis Return of Capital |
Total |
||||||||||||||||||||||||||||||
PIMCO Corporate & Income Opportunity Fund |
||||||||||||||||||||||||||||||||||||||||
06/30/2026 |
$ | 11.73 | $ | 1.18 | $ | (0.16 | ) | $ | 0.00 | $ | 0.00 | $ | 1.02 | $ | (1.28 | ) | $ | 0.00 | $ | (0.15 | ) | $ | (1.43 | ) | ||||||||||||||||
06/30/2025 |
11.17 | 1.25 | 0.36 | 0.00 | 0.00 | 1.61 | (1.28 | ) | 0.00 | (0.15 | ) | (1.43 | ) | |||||||||||||||||||||||||||
06/30/2024 |
10.83 | 1.11 | 0.33 | (0.07 | ) | 0.00 | 1.37 | (0.95 | ) | 0.00 | (0.48 | ) | (1.43 | ) | ||||||||||||||||||||||||||
06/30/2023 |
11.21 | 1.32 | (0.25 | ) | (0.12 | ) | 0.00 | 0.95 | (1.58 | ) | 0.00 | 0.00 | (1.58 | ) | ||||||||||||||||||||||||||
08/01/2021 - 06/30/2022 (i) |
14.40 | 1.21 | (3.22 | ) | (0.01 | ) | 0.00 | (2.02 | ) | (1.32 | ) | 0.00 | 0.00 | (1.32 | ) (j) | |||||||||||||||||||||||||
07/31/2021 |
12.44 | 1.32 | 1.78 | 0.00 | 0.00 | 3.10 | (1.22 | ) | 0.00 | (0.34 | ) | (1.56 | ) | |||||||||||||||||||||||||||
07/31/2020~ |
14.66 | 1.36 | (2.41 | ) | (0.05 | ) | 0.00 | (1.10 | ) | (1.59 | ) | 0.00 | 0.00 | (1.59 | ) | |||||||||||||||||||||||||
07/31/2019~ |
14.80 | (h) |
1.36 | 0.09 | (0.13 | ) | 0.00 | 1.32 | (1.63 | ) | 0.00 | 0.00 | (1.63 | ) | ||||||||||||||||||||||||||
07/31/2018~ |
14.87 | 1.30 | 0.16 | (0.09 | ) | 0.00 | 1.37 | (1.56 | ) | 0.00 | 0.00 | (1.56 | ) | |||||||||||||||||||||||||||
07/31/2017~ |
13.27 | 1.21 | 2.06 | (0.04 | ) | 0.00 | 3.23 | (1.59 | ) | 0.00 | (0.14 | ) | (1.73 | ) | ||||||||||||||||||||||||||
07/31/2016~ |
14.23 | 1.30 | (0.65 | ) | (0.02 | ) | 0.00 | 0.63 | (1.59 | ) | 0.00 | 0.00 | (1.59 | ) | ||||||||||||||||||||||||||
PIMCO Corporate & Income Strategy Fund |
||||||||||||||||||||||||||||||||||||||||
06/30/2026 |
$ | 11.82 | $ | 1.16 | $ | (0.22 | ) | $ | 0.00 | $ | 0.00 | $ | 0.94 | $ | (1.27 | ) | $ | 0.00 | $ | (0.08 | ) | $ | (1.35 | ) | ||||||||||||||||
06/30/2025 |
11.40 | 1.20 | 0.35 | 0.00 | 0.00 | 1.55 | (1.27 | ) | 0.00 | (0.08 | ) | (1.35 | ) | |||||||||||||||||||||||||||
06/30/2024 |
11.14 | 1.01 | 0.37 | (0.02 | ) | 0.00 | 1.36 | (1.00 | ) | 0.00 | (0.35 | ) | (1.35 | ) | ||||||||||||||||||||||||||
06/30/2023 |
11.60 | 1.19 | (0.27 | ) | (0.03 | ) | 0.00 | 0.89 | (1.50 | ) | 0.00 | 0.00 | (1.50 | ) | ||||||||||||||||||||||||||
08/01/2021 - 06/30/2022 (i) |
14.54 | 1.11 | (2.93 | ) | 0.00 | 0.00 | (1.82 | ) | (1.24 | ) | 0.00 | 0.00 | (1.24 | ) (j) | ||||||||||||||||||||||||||
07/31/2021 |
12.76 | 1.24 | 1.77 | 0.00 | 0.00 | 3.01 | (1.35 | ) | 0.00 | 0.00 | (1.35 | ) | ||||||||||||||||||||||||||||
07/31/2020~ |
14.94 | 1.31 | (2.07 | ) | (0.01 | ) | 0.00 | (0.77 | ) | (1.41 | ) | 0.00 | 0.00 | (1.41 | ) | |||||||||||||||||||||||||
07/31/2019~ |
14.90 | (h) |
1.22 | 0.20 | (0.05 | ) | 0.00 | 1.37 | (1.43 | ) | 0.00 | 0.00 | (1.43 | ) | ||||||||||||||||||||||||||
07/31/2018~ |
15.32 | 1.20 | (0.24 | ) | (0.03 | ) | 0.00 | 0.93 | (1.35 | ) | 0.00 | 0.00 | (1.35 | ) | ||||||||||||||||||||||||||
07/31/2017~ |
14.28 | 1.12 | 1.70 | (0.01 | ) | 0.00 | 2.81 | (1.75 | ) | 0.00 | (0.02 | ) | (1.77 | ) | ||||||||||||||||||||||||||
07/31/2016~ |
14.75 | 1.24 | (0.84 | ) | (0.01 | ) | 0.00 | 0.39 | (1.37 | ) | 0.00 | 0.00 | (1.37 | ) | ||||||||||||||||||||||||||
PIMCO High Income Fund |
||||||||||||||||||||||||||||||||||||||||
06/30/2026 |
$ | 4.62 | $ | 0.48 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.48 | $ | (0.52 | ) | $ | 0.00 | $ | (0.06 | ) | $ | (0.58 | ) | |||||||||||||||||
06/30/2025 |
4.56 | 0.50 | 0.12 | 0.00 | 0.00 | 0.62 | (0.53 | ) | 0.00 | (0.05 | ) | (0.58 | ) | |||||||||||||||||||||||||||
06/30/2024 |
4.51 | 0.40 | 0.22 | (0.02 | ) | 0.00 | 0.60 | (0.48 | ) | 0.00 | (0.10 | ) | (0.58 | ) | ||||||||||||||||||||||||||
06/30/2023 |
4.72 | 0.48 | (0.10 | ) | (0.03 | ) | 0.00 | 0.35 | (0.58 | ) | 0.00 | 0.00 | (0.58 | ) | ||||||||||||||||||||||||||
08/01/2021 - 06/30/2022 (i) |
5.92 | 0.47 | (1.14 | ) | 0.00 | 0.00 | (0.67 | ) | (0.53 | ) | 0.00 | 0.00 | (0.53 | ) (j) | ||||||||||||||||||||||||||
07/31/2021 |
5.01 | 0.56 | 0.93 | 0.00 | 0.00 | 1.49 | (0.44 | ) | 0.00 | (0.14 | ) | (0.58 | ) | |||||||||||||||||||||||||||
07/31/2020~ |
6.38 | 0.65 | (1.30 | ) | (0.01 | ) | 0.00 | (0.66 | ) | (0.68 | ) | 0.00 | (0.03 | ) | (0.71 | ) | ||||||||||||||||||||||||
07/31/2019~ |
6.54 | 0.61 | 0.11 | (0.03 | ) | 0.00 | 0.69 | (0.73 | ) | 0.00 | (0.16 | ) | (0.89 | ) | ||||||||||||||||||||||||||
07/31/2018~ |
6.90 | 0.62 | 0.01 | (0.02 | ) | 0.00 | 0.61 | (0.84 | ) | 0.00 | (0.13 | ) | (0.97 | ) | ||||||||||||||||||||||||||
07/31/2017~ |
6.63 | 0.67 | 0.71 | (0.01 | ) | 0.00 | 1.37 | (0.91 | ) | 0.00 | (0.19 | ) | (1.10 | ) | ||||||||||||||||||||||||||
07/31/2016~ |
7.37 | 0.74 | (0.48 | ) | (0.00 | ) | 0.00 | 0.26 | (1.18 | ) | 0.00 | (0.08 | ) | (1.26 | ) | |||||||||||||||||||||||||
PIMCO Income Strategy Fund |
||||||||||||||||||||||||||||||||||||||||
06/30/2026 |
$ | 7.99 | $ | 0.69 | $ | (0.09 | ) | $ | 0.00 | $ | 0.00 | $ | 0.60 | $ | (0.73 | ) | $ | 0.00 | $ | (0.25 | ) | $ | (0.98 | ) | ||||||||||||||||
06/30/2025 |
7.84 | 0.82 | 0.28 | 0.00 | 0.00 | 1.10 | (0.83 | ) | 0.00 | (0.15 | ) | (0.98 | ) | |||||||||||||||||||||||||||
06/30/2024 |
7.77 | 0.74 | 0.27 | (0.04 | ) | 0.00 | 0.97 | (0.64 | ) | 0.00 | (0.34 | ) | (0.98 | ) | ||||||||||||||||||||||||||
06/30/2023 |
8.39 | 0.86 | (0.44 | ) | (0.09 | ) | 0.00 | 0.33 | (0.98 | ) | 0.00 | 0.00 | (0.98 | ) | ||||||||||||||||||||||||||
08/01/2021 - 06/30/2022 (i) |
10.66 | 0.75 | (2.11 | ) | (0.02 | ) | 0.00 | (1.38 | ) | (0.90 | ) | 0.00 | 0.00 | (0.90 | ) (j) | |||||||||||||||||||||||||
07/31/2021 |
9.46 | 0.91 | 1.32 | (0.02 | ) | 0.00 | 2.21 | (0.84 | ) | 0.00 | (0.24 | ) | (1.08 | ) | ||||||||||||||||||||||||||
07/31/2020~ |
11.00 | 1.01 | (1.52 | ) | (0.04 | ) | 0.00 | (0.55 | ) | (0.97 | ) | 0.00 | (0.11 | ) | (1.08 | ) | ||||||||||||||||||||||||
07/31/2019~ |
11.14 | (h) |
0.90 | 0.02 | (0.07 | ) | 0.00 | 0.85 | (0.99 | ) | 0.00 | (0.09 | ) | (1.08 | ) | |||||||||||||||||||||||||
07/31/2018~ |
11.60 | 0.87 | (0.19 | ) | (0.06 | ) | 0.00 | 0.62 | (1.07 | ) | 0.00 | (0.01 | ) | (1.08 | ) | |||||||||||||||||||||||||
07/31/2017~ |
10.53 | 0.88 | 1.31 | (0.04 | ) | 0.00 | 2.15 | (1.08 | ) | 0.00 | 0.00 | (1.08 | ) | |||||||||||||||||||||||||||
07/31/2016~ |
11.46 | 0.88 | (0.70 | ) | (0.03 | ) | 0.00 | 0.15 | (1.08 | ) | 0.00 | 0.00 | (1.08 | ) | ||||||||||||||||||||||||||
PIMCO Income Strategy Fund II |
||||||||||||||||||||||||||||||||||||||||
06/30/2026 |
$ | 7.10 | $ | 0.74 | $ | (0.05 | ) | $ | 0.00 | $ | 0.00 | $ | 0.69 | $ | (0.78 | ) | $ | 0.00 | $ | (0.08 | ) | $ | (0.86 | ) | ||||||||||||||||
06/30/2025 |
6.93 | 0.80 | 0.21 | 0.00 | 0.00 | 1.01 | (0.82 | ) | 0.00 | (0.04 | ) | (0.86 | ) | |||||||||||||||||||||||||||
06/30/2024 |
6.85 | 0.69 | 0.24 | (0.05 | ) | 0.00 | 0.88 | (0.57 | ) | 0.00 | (0.29 | ) | (0.86 | ) | ||||||||||||||||||||||||||
06/30/2023 |
7.38 | 0.76 | (0.37 | ) | (0.08 | ) | 0.00 | 0.31 | (0.86 | ) | 0.00 | 0.00 | (0.86 | ) | ||||||||||||||||||||||||||
08/01/2021 - 06/30/2022 (i) |
9.42 | 0.67 | (1.90 | ) | (0.02 | ) | 0.00 | (1.25 | ) | (0.80 | ) | 0.00 | 0.00 | (0.80 | ) (j) | |||||||||||||||||||||||||
07/31/2021 |
8.53 | 0.78 | 1.05 | (0.02 | ) | 0.00 | 1.81 | (0.75 | ) | 0.00 | (0.21 | ) | (0.96 | ) | ||||||||||||||||||||||||||
07/31/2020~ |
9.91 | 0.86 | (1.32 | ) | (0.03 | ) | 0.00 | (0.49 | ) | (0.90 | ) | 0.00 | (0.06 | ) | (0.96 | ) | ||||||||||||||||||||||||
07/31/2019~ |
10.07 | (h) |
0.83 | 0.04 | (0.05 | ) | 0.00 | 0.82 | (1.03 | ) | 0.00 | 0.00 | (1.03 | ) | ||||||||||||||||||||||||||
07/31/2018~ |
10.33 | 0.79 | (0.05 | ) | (0.04 | ) | 0.00 | 0.70 | (0.96 | ) | 0.00 | 0.00 | (0.96 | ) | ||||||||||||||||||||||||||
07/31/2017~ |
9.42 | 0.80 | 1.10 | (0.03 | ) | 0.00 | 1.87 | (0.96 | ) | 0.00 | 0.00 | (0.96 | ) | |||||||||||||||||||||||||||
07/31/2016~ |
10.27 | 0.87 | (0.67 | ) | (0.02 | ) | 0.00 | 0.18 | (1.03 | ) | 0.00 | 0.00 | (1.03 | ) | ||||||||||||||||||||||||||
22 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
Common Share |
Ratios/Supplemental Data |
|||||||||||||||||||||||||||||||||||||||||||||||||
Ratios to Average Net Assets (f) |
||||||||||||||||||||||||||||||||||||||||||||||||||
Increase resulting from Common Share Offering |
Offering Cost Charged to Paid in Capital |
Increase Resulting from Tender of ARPS (c) |
Net Asset Value End of Year or Period (a) |
Market Price End of Year or Period |
Total Investment Return (e) |
Net Assets Applicable to Common Shareholders End of Year or Period (000s) |
Expenses (g) |
Expenses Excluding Waivers (g) |
Expenses Excluding Interest Expense |
Expenses Excluding Interest Expense and Waivers |
Net Investment Income (Loss) |
Portfolio Turnover Rate |
||||||||||||||||||||||||||||||||||||||
| |
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| $ | 0.17 | $ | 0.00 | $ | 0.00 | $ | 11.49 | $ | 12.03 | (3.01 | )% | 2,507,187 | 1.52 | % | 1.52 | % | 0.66 | % | 0.66 | % | 10.03 | % | 46 | % | ||||||||||||||||||||||||||
| 0.38 | 0.00 | 0.00 | 11.73 | 13.91 | 7.87 | 2,246,776 | 1.27 | 1.27 | 0.67 | 0.67 | 10.78 | 49 | ||||||||||||||||||||||||||||||||||||||
| 0.35 | 0.00 | 0.05 | 11.17 | 14.31 | 13.77 | 1,817,343 | 2.33 | 2.33 | 0.74 | 0.74 | 10.07 | 31 | ||||||||||||||||||||||||||||||||||||||
| 0.25 | 0.00 | 0.00 | 10.83 | 14.00 | 27.06 | 1,532,891 | 2.23 | 2.23 | 0.78 | 0.78 | 11.80 | 35 | ||||||||||||||||||||||||||||||||||||||
| 0.15 | 0.00 | 0.00 | 11.21 | 12.51 | (33.71 | ) | 1,361,439 | 1.13 | * | 1.13 | * | 0.77 | * | 0.77 | * | 9.86 | * | 58 | ||||||||||||||||||||||||||||||||
| 0.42 | 0.00 | 0.00 | 14.40 | 20.56 | 46.75 | 1,643,538 | 1.06 | 1.06 | 0.76 | 0.76 | 9.60 | 58 | ||||||||||||||||||||||||||||||||||||||
| 0.47 | (0.00) | 0.00 | 12.44 | 15.34 | (8.77 | ) | 1,248,837 | 1.30 | 1.30 | 0.82 | 0.82 | 10.20 | 34 | |||||||||||||||||||||||||||||||||||||
| 0.15 | 0.00 | 0.02 | 14.66 | 18.60 | 14.48 | 1,291,233 | 1.35 | 1.35 | 0.80 | 0.80 | 9.44 | 22 | ||||||||||||||||||||||||||||||||||||||
| 0.12 | 0.00 | 0.00 | 14.80 | (h) |
17.95 | 16.78 | 1,219,515 | 1.26 | 1.26 | 0.81 | 0.81 | 8.73 | 19 | |||||||||||||||||||||||||||||||||||||
| 0.10 | 0.00 | 0.00 | 14.87 | 16.92 | 29.18 | 1,140,768 | 1.08 | 1.08 | 0.83 | 0.83 | 8.68 | 39 | ||||||||||||||||||||||||||||||||||||||
| N/A | N/A | 0.00 | 13.27 | 14.75 | 16.09 | 946,843 | 0.89 | 0.89 | 0.85 | 0.85 | 9.93 | 45 | ||||||||||||||||||||||||||||||||||||||
| $ | 0.09 | $ | 0.00 | $ | 0.00 | $ | 11.50 | $ | 11.95 | 5.35 | % | 870,565 | 1.53 | % | 1.53 | % | 0.82 | % | 0.82 | % | 9.90 | % | 47 | % | ||||||||||||||||||||||||||
| 0.22 | 0.00 | 0.00 | 11.82 | 12.69 | 6.67 | 792,344 | 1.20 | 1.20 | 0.83 | 0.83 | 10.22 | 48 | ||||||||||||||||||||||||||||||||||||||
| 0.22 | 0.00 | 0.03 | 11.40 | 13.21 | 12.39 | 657,867 | 2.31 | 2.31 | 0.87 | 0.87 | 8.96 | 28 | ||||||||||||||||||||||||||||||||||||||
| 0.15 | 0.00 | 0.00 | 11.14 | 13.11 | 17.15 | 551,441 | 2.40 | 2.40 | 0.89 | 0.89 | 10.38 | 29 | ||||||||||||||||||||||||||||||||||||||
| 0.12 | 0.00 | 0.00 | 11.60 | 12.65 | (27.59 | ) | 509,542 | 1.22 | * | 1.22 | * | 0.88 | * | 0.88 | * | 8.89 | * | 47 | ||||||||||||||||||||||||||||||||
| 0.12 | (0.00 | ) | 0.00 | 14.54 | 18.93 | 34.41 | 605,830 | 1.15 | 1.15 | 0.87 | 0.87 | 8.95 | 48 | |||||||||||||||||||||||||||||||||||||
| N/A | N/A | 0.00 | 12.76 | 15.29 | (7.72 | ) | 509,488 | 1.57 | 1.57 | 0.87 | 0.87 | 9.57 | 31 | |||||||||||||||||||||||||||||||||||||
| N/A | N/A | 0.10 | 14.94 | 18.08 | 9.20 | 591,931 | 1.60 | 1.60 | 0.94 | 0.94 | 8.39 | 18 | ||||||||||||||||||||||||||||||||||||||
| N/A | N/A | 0.00 | 14.90 | (h) |
18.09 | 9.61 | 586,592 | 1.36 | 1.36 | 0.94 | 0.94 | 7.97 | 20 | |||||||||||||||||||||||||||||||||||||
| N/A | N/A | 0.00 | 15.32 | 17.92 | 30.63 | 599,266 | 1.17 | 1.17 | 0.93 | 0.93 | 7.65 | 38 | ||||||||||||||||||||||||||||||||||||||
| N/A | N/A | 0.51 | 14.28 | 15.43 | 24.21 | 553,569 | 1.10 | 1.10 | 1.02 | 1.02 | 8.91 | 43 | ||||||||||||||||||||||||||||||||||||||
| $ | 0.01 | $ | 0.00 | $ | 0.00 | $ | 4.53 | $ | 4.66 | 9.88 | % | 847,977 | 1.78 | % | 1.78 | % | 0.77 | % | 0.77 | % | 10.44 | % | 45 | % | ||||||||||||||||||||||||||
| 0.02 | 0.00 | 0.00 | 4.62 | 4.80 | 12.54 | 804,758 | 1.44 | 1.44 | 0.79 | 0.79 | 10.64 | 37 | ||||||||||||||||||||||||||||||||||||||
| 0.01 | 0.00 | 0.02 | 4.56 | 4.82 | 9.17 | 720,939 | 2.91 | 2.91 | 0.85 | 0.85 | 8.95 | 29 | ||||||||||||||||||||||||||||||||||||||
| 0.02 | 0.00 | 0.00 | 4.51 | 5.00 | 9.20 | 667,041 | 2.70 | 2.70 | 0.92 | 0.92 | 10.14 | 27 | ||||||||||||||||||||||||||||||||||||||
| N/A | 0.00 | 0.00 | 4.72 | 5.17 | (18.39 | ) | 640,448 | 1.18 | * | 1.18 | * | 0.86 | * | 0.86 | * | 9.30 | * | 37 | ||||||||||||||||||||||||||||||||
| N/A | N/A | 0.00 | 5.92 | 6.95 | 47.82 | 792,773 | 1.14 | 1.14 | 0.86 | 0.86 | 9.96 | 60 | ||||||||||||||||||||||||||||||||||||||
| N/A | N/A | 0.00 | 5.01 | 5.18 | (27.55 | ) | 664,144 | 1.73 | 1.73 | 0.86 | 0.86 | 11.42 | 40 | |||||||||||||||||||||||||||||||||||||
| N/A | N/A | 0.04 | 6.38 | 8.03 | 3.57 | 835,988 | 1.86 | 1.86 | 0.91 | 0.91 | 9.74 | 20 | ||||||||||||||||||||||||||||||||||||||
| N/A | N/A | 0.00 | 6.54 | (h) |
8.67 | 13.13 | 847,052 | 1.48 | 1.48 | 0.90 | 0.90 | 9.30 | 27 | |||||||||||||||||||||||||||||||||||||
| N/A | N/A | 0.00 | 6.90 | 8.71 | (1.45 | ) | 884,912 | 1.25 | 1.25 | 0.90 | 0.90 | 10.08 | 32 | |||||||||||||||||||||||||||||||||||||
| N/A | N/A | 0.26 | 6.63 | 10.03 | 19.92 | 841,102 | 1.08 | 1.08 | 0.95 | 0.95 | 11.20 | 42 | ||||||||||||||||||||||||||||||||||||||
| $ | 0.03 | $ | 0.00 | $ | 0.00 | $ | 7.64 | $ | 7.88 | 6.82 | % | 381,512 | 1.29 | % | 1.29 | % | 0.94 | % | 0.94 | % | 8.77 | % | 19 | % | ||||||||||||||||||||||||||
| 0.03 | 0.00 | 0.00 | 7.99 | 8.34 | 15.41 | 362,657 | 1.86 | 1.86 | 1.03 | 1.03 | 10.20 | 16 | ||||||||||||||||||||||||||||||||||||||
| 0.02 | 0.00 | 0.06 | 7.84 | 8.15 | 12.60 | 319,385 | 3.34 | 3.34 | 1.18 | 1.18 | 9.45 | 19 | ||||||||||||||||||||||||||||||||||||||
| 0.03 | 0.00 | 0.00 | 7.77 | 8.19 | 2.64 | 296,531 | 2.81 | 2.81 | 1.26 | 1.26 | 10.58 | 35 | ||||||||||||||||||||||||||||||||||||||
| 0.01 | 0.00 | 0.00 | 8.39 | 8.99 | (21.16 | ) | 297,796 | 1.64 | * | 1.64 | * | 1.37 | * | 1.37 | * | 8.31 | * | 47 | ||||||||||||||||||||||||||||||||
| 0.07 | 0.00 | 0.00 | 10.66 | 12.47 | 38.31 | 365,580 | 1.62 | 1.62 | 1.36 | 1.36 | 8.81 | 42 | ||||||||||||||||||||||||||||||||||||||
| 0.09 | (0.00 | ) | 0.00 | 9.46 | 9.95 | (7.65 | ) | 295,167 | 1.69 | 1.69 | 1.21 | 1.21 | 10.03 | 21 | ||||||||||||||||||||||||||||||||||||
| 0.06 | 0.00 | 0.03 | 11.00 | 11.99 | 8.10 | 305,453 | 1.69 | 1.69 | 1.18 | 1.18 | 8.39 | 17 | ||||||||||||||||||||||||||||||||||||||
| N/A | N/A | 0.00 | 11.14 | (h) |
12.23 | 10.37 | 284,677 | 1.48 | 1.48 | 1.17 | 1.17 | 7.67 | 21 | |||||||||||||||||||||||||||||||||||||
| N/A | N/A | 0.00 | 11.60 | 12.17 | 28.11 | 294,525 | 1.35 | 1.35 | 1.17 | 1.17 | 8.01 | 40 | ||||||||||||||||||||||||||||||||||||||
| N/A | N/A | 0.00 | 10.53 | 10.48 | 12.41 | 266,347 | 1.17 | 1.17 | 1.13 | 1.13 | 8.49 | 38 | ||||||||||||||||||||||||||||||||||||||
| $ | 0.01 | $ | 0.00 | $ | 0.00 | $ | 6.94 | $ | 7.13 | 8.88 | % | 685,712 | 2.33 | % | 2.33 | % | 1.10 | % | 1.10 | % | 10.52 | % | 39 | % | ||||||||||||||||||||||||||
| 0.02 | 0.00 | 0.00 | 7.10 | 7.39 | 16.21 | 669,488 | 1.71 | 1.71 | 0.98 | 0.98 | 11.32 | 35 | ||||||||||||||||||||||||||||||||||||||
| 0.01 | 0.00 | 0.05 | 6.93 | 7.17 | 12.55 | 608,295 | 3.09 | 3.09 | 1.13 | 1.13 | 9.94 | 26 | ||||||||||||||||||||||||||||||||||||||
| 0.02 | 0.00 | 0.00 | 6.85 | 7.21 | 2.62 | 577,280 | 2.57 | 2.57 | 1.22 | 1.22 | 10.60 | 33 | ||||||||||||||||||||||||||||||||||||||
| 0.01 | 0.00 | 0.00 | 7.38 | 7.92 | (21.31 | ) | 581,955 | 1.54 | * | 1.54 | * | 1.29 | * | 1.29 | * | 8.32 | * | 45 | ||||||||||||||||||||||||||||||||
| 0.04 | 0.00 | 0.00 | 9.42 | 11.01 | 37.03 | 723,617 | 1.54 | 1.54 | 1.29 | 1.29 | 8.58 | 38 | ||||||||||||||||||||||||||||||||||||||
| 0.07 | (0.00 | ) | 0.00 | 8.53 | 8.88 | (7.75 | ) | 605,851 | 1.62 | 1.62 | 1.15 | 1.15 | 9.49 | 21 | ||||||||||||||||||||||||||||||||||||
| 0.04 | 0.00 | 0.01 | 9.91 | 10.70 | 11.03 | 632,927 | 1.66 | 1.66 | 1.12 | 1.12 | 8.57 | 17 | ||||||||||||||||||||||||||||||||||||||
| N/A | N/A | 0.00 | 10.07 | (h) |
10.70 | 9.19 | 600,890 | 1.41 | 1.41 | 1.10 | 1.10 | 7.79 | 18 | |||||||||||||||||||||||||||||||||||||
| N/A | N/A | 0.00 | 10.33 | 10.76 | 26.32 | 612,310 | 1.26 | 1.26 | 1.09 | 1.09 | 8.15 | 26 | ||||||||||||||||||||||||||||||||||||||
| N/A | N/A | 0.00 | 9.42 | 9.39 | 11.92 | 556,840 | 1.14 | 1.14 | 1.07 | 1.07 | 9.25 | 38 | ||||||||||||||||||||||||||||||||||||||
ANNUAL REPORT |
| |
JUNE 30, 2026 |
23 |
Financial Highlights |
(Cont.) |
Ratios/Supplemental Data |
||||||||||||||||
ARPS |
||||||||||||||||
| Selected Per Share Data for the Year or Period Ended^: | Total Amount Outstanding |
Asset Coverage per Preferred Share (1) |
Involuntary Liquidating Preference per Preferred Share (2) |
Average Market Value per ARPS (3) |
||||||||||||
PIMCO Corporate & Income Opportunity Fund |
||||||||||||||||
| 6/30/2026 | N/A | N/A | N/A | N/A | ||||||||||||
| 6/30/2025 | N/A | N/A | N/A | N/A | ||||||||||||
| 6/30/2024 | 4,375,000 | 10,400,210 | 25,000 | N/A | ||||||||||||
| 6/30/2023 | 212,650,000 | 204,962 | 25,000 | N/A | ||||||||||||
| 8/1/2021 - 6/30/2022 (i) |
212,650,000 | 184,988 | 25,000 | N/A | ||||||||||||
| 7/31/2021 | 212,650,000 | 218,218 | 25,000 | N/A | ||||||||||||
| 7/31/2020~ | 212,650,000 | 171,815 | 25,000 | N/A | ||||||||||||
| 7/31/2019~ | 212,650,000 | 176,730 | 25,000 | N/A | ||||||||||||
| 7/31/2018~ | 237,950,000 | 153,072 | 25,000 | N/A | ||||||||||||
| 7/31/2017~ | 237,950,000 | 144,819 | 25,000 | N/A | ||||||||||||
| 7/31/2016~ | 237,950,000 | 124,468 | 25,000 | N/A | ||||||||||||
PIMCO Corporate & Income Strategy Fund |
||||||||||||||||
| 6/30/2026 | N/A | N/A | N/A | N/A | ||||||||||||
| 6/30/2025 | N/A | N/A | N/A | N/A | ||||||||||||
| 6/30/2024 | 1,075,000 | 15,313,685 | 25,000 | N/A | ||||||||||||
| 6/30/2023 | 23,525,000 | 610,350 | 25,000 | N/A | ||||||||||||
| 8/1/2021 - 6/30/2022 (i) |
23,525,000 | 566,333 | 25,000 | N/A | ||||||||||||
| 7/31/2021 | 23,525,000 | 668,805 | 25,000 | N/A | ||||||||||||
| 7/31/2020~ | 23,525,000 | 566,423 | 25,000 | N/A | ||||||||||||
| 7/31/2019~ | 23,525,000 | 653,838 | 25,000 | N/A | ||||||||||||
| 7/31/2018~ | 55,525,000 | 289,023 | 25,000 | N/A | ||||||||||||
| 7/31/2017~ | 55,525,000 | 294,755 | 25,000 | N/A | ||||||||||||
| 7/31/2016~ | 55,525,000 | 274,223 | 25,000 | N/A | ||||||||||||
PIMCO High Income Fund |
||||||||||||||||
| 6/30/2026 | ||||||||||||||||
| 6/30/2025 | ||||||||||||||||
| 6/30/2024 | ||||||||||||||||
| 6/30/2023 | ||||||||||||||||
| 8/1/2021 - 6/30/2022 (i) |
||||||||||||||||
| 7/31/2021 | ||||||||||||||||
| 7/31/2020~ | ||||||||||||||||
| 7/31/2019~ | ||||||||||||||||
| 7/31/2018~ | ||||||||||||||||
| 7/31/2017~ | ||||||||||||||||
| 7/31/2016~ | ||||||||||||||||
PIMCO Income Strategy Fund |
||||||||||||||||
| 6/30/2026 | N/A | N/A | N/A | N/A | ||||||||||||
| 6/30/2025 | N/A | N/A | N/A | N/A | ||||||||||||
| 6/30/2024 | 925,000 | 8,653,090 | 25,000 | N/A | ||||||||||||
| 6/30/2023 | 45,200,000 | 188,823 | 25,000 | N/A | ||||||||||||
| 8/1/2021 - 6/30/2022 (i) |
45,200,000 | 189,645 | 25,000 | N/A | ||||||||||||
| 7/31/2021 | 45,200,000 | 227,165 | 25,000 | N/A | ||||||||||||
| 7/31/2020~ | 45,200,000 | 188,225 | 25,000 | N/A | ||||||||||||
| 7/31/2019~ | 45,200,000 | 193,873 | 25,000 | N/A | ||||||||||||
| 7/31/2018~ | 51,275,000 | 163,725 | 25,000 | N/A | ||||||||||||
| 7/31/2017~ | 51,275,000 | 168,552 | 25,000 | N/A | ||||||||||||
| 7/31/2016~ | 51,275,000 | 154,837 | 25,000 | N/A | ||||||||||||
24 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
ARPS |
||||||||||||||||
| Selected Per Share Data for the Year or Period Ended^: | Total Amount Outstanding |
Asset Coverage per Preferred Share (1) |
Involuntary Liquidating Preference per Preferred Share (2) |
Average Market Value per ARPS (3) |
||||||||||||
PIMCO Income Strategy Fund II |
||||||||||||||||
| 6/30/2026 | N/A | N/A | N/A | N/A | ||||||||||||
| 6/30/2025 | N/A | N/A | N/A | N/A | ||||||||||||
| 6/30/2024 | 3,250,000 | 4,699,268 | 25,000 | N/A | ||||||||||||
| 6/30/2023 | 87,425,000 | 189,850 | 25,000 | N/A | ||||||||||||
| 8/1/2021 - 6/30/2022 (i) |
87,425,000 | 191,350 | 25,000 | N/A | ||||||||||||
| 7/31/2021 | 87,425,000 | 231,880 | 25,000 | N/A | ||||||||||||
| 7/31/2020~ | 87,425,000 | 198,210 | 25,000 | N/A | ||||||||||||
| 7/31/2019~ | 87,425,000 | 205,928 | 25,000 | N/A | ||||||||||||
| 7/31/2018~ | 92,450,000 | 187,429 | 25,000 | N/A | ||||||||||||
| 7/31/2017~ | 92,450,000 | 190,527 | 25,000 | N/A | ||||||||||||
| 7/31/2016~ | 92,450,000 | 175,544 | 25,000 | N/A | ||||||||||||
^ |
A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%. |
* |
Annualized, except for organizational expense, if any. |
~ |
Not covered by the Report of Independent Registered Public Accounting Firm. |
(a) |
Net asset value includes adjustments required by U.S. GAAP. These values, and other performance figures relying on them, such as average annual total return data included in the fund’s prospectus and in any shareholder reports, may differ from net asset values and performance reported elsewhere with respect to the Funds. |
(b) |
Per share amounts based on average number of common shares outstanding during the year or period. |
(c) |
Auction Rate Preferred Shareholders (“ARPS”). From February 20, 2002 until November 8, 2024, the Funds had one or more series of ARPS outstanding with a liquidation preference of $25,000 per share plus any accumulated, unpaid dividends. |
(d) |
The tax characterization of distributions is determined in accordance with Federal income tax regulations. The actual tax characterization of distributions paid is determined at the end of the fiscal year. See Note 2, Distributions — Common Shares, in the Notes to Financial Statements for more information. |
(e) |
Total investment return is calculated assuming a purchase of a common share at the market price on the first day and a sale of a common share at the market price on the last day of each year or period reported. Dividends and distributions, if any, are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Funds’ dividend reinvestment plan. Total investment return does not reflect brokerage commissions in connection with the purchase or sale of Fund shares. |
(f) |
Calculated on the basis of income and expenses applicable to both common and preferred shares relative to the average net assets of common shareholders. The expense ratio and net investment income do not reflect the effects of dividend payments to preferred shareholders. |
(g) |
Ratio includes interest expense which primarily relates to participation in borrowing and financing transactions. See Note 5, Borrowings and Other Financing Transactions, in the Notes to Financial Statements for more information. |
(h) |
The NAV presented may differ from the NAV reported for the same period in other Fund materials. |
(i) |
Fiscal year end changed from July 31st to June 30th. |
(j) |
Total distributions for the period ended June 30, 2022 may be lower than prior fiscal years due to fiscal year end change resulting in a reduction of the amount of days in the period ended June 30, 2022. |
(1) |
“Asset Coverage per Preferred Share” means the ratio that the value of the total assets of the Fund, less all liabilities and indebtedness not represented by ARPS, bears to the aggregate of the involuntary liquidation preference of ARPS, expressed as a dollar amount per ARPS. |
(2) |
“Involuntary Liquidating Preference“ means the amount to which a holder of ARPS would be entitled upon the involuntary liquidation of the Fund in preference to the Common Shareholders, expressed as a dollar amount per Preferred Share. |
(3) |
Between November 4, 2024 and November 8, 2024, the Funds redeemed each outstanding series of ARPS at the full liquidation preference (i.e., face value) of the ARPS. |
ANNUAL REPORT |
| | JUNE 30, 2026 | 25 |
Statements of Assets and Liabilities |
June 30, 2026 |
(Amounts in thousands † |
PIMCO Corporate & Income Opportunity Fund |
PIMCO Corporate & Income Strategy Fund |
PIMCO High Income Fund |
PIMCO Income Strategy Fund |
PIMCO Income Strategy Fund II |
|||||||||||||||
Assets: |
||||||||||||||||||||
Investments, at value |
||||||||||||||||||||
Investments in securities |
$ | 2,987,037 | $ | 994,382 | $ | 1,065,718 | $ | 335,568 | $ | 866,097 | ||||||||||
Investments in Affiliates |
212,386 | 76,422 | 71,623 | 40,195 | 57,496 | |||||||||||||||
Financial Derivative Instruments |
||||||||||||||||||||
Exchange-traded or centrally cleared |
4,025 | 1,743 | 3,791 | 823 | 1,918 | |||||||||||||||
Over the counter |
12,397 | 4,084 | 4,890 | 699 | 3,875 | |||||||||||||||
Cash |
492 | 102 | 0 | 45 | 0 | |||||||||||||||
Deposits with counterparty |
81,635 | 32,085 | 31,361 | 9,881 | 25,660 | |||||||||||||||
Foreign currency, at value |
1,237 | 967 | 2,365 | 547 | 1,644 | |||||||||||||||
Receivable for investments sold |
120,611 | 46,733 | 25,403 | 3,596 | 31,827 | |||||||||||||||
Receivable for investments sold on a delayed-delivery basis |
4,694 | 2,604 | 3,076 | 0 | 2,567 | |||||||||||||||
Receivable for TBA investments sold |
0 | 0 | 87 | 0 | 0 | |||||||||||||||
Receivable for Fund shares sold |
2,432 | 958 | 140 | 152 | 96 | |||||||||||||||
Interest and/or dividends receivable |
37,134 | 11,764 | 12,557 | 3,594 | 10,882 | |||||||||||||||
Dividends receivable from Affiliates |
551 | 186 | 188 | 111 | 151 | |||||||||||||||
Other assets |
1,501 | 676 | 849 | 626 | 657 | |||||||||||||||
Total Assets |
3,466,132 | 1,172,706 | 1,222,048 | 395,837 | 1,002,870 | |||||||||||||||
Liabilities: |
||||||||||||||||||||
Borrowings & Other Financing Transactions |
||||||||||||||||||||
Payable for reverse repurchase agreements |
$ | 800,954 | $ | 245,004 | $ | 324,881 | $ | 3,337 | $ | 272,998 | ||||||||||
Financial Derivative Instruments |
||||||||||||||||||||
Exchange-traded or centrally cleared |
6,808 | 2,786 | 3,804 | 1,195 | 2,643 | |||||||||||||||
Over the counter |
21,572 | 5,808 | 5,729 | 666 | 5,126 | |||||||||||||||
Payable for investments purchased |
61,306 | 25,754 | 18,745 | 260 | 16,192 | |||||||||||||||
Payable for investments in Affiliates purchased |
579 | 197 | 197 | 114 | 160 | |||||||||||||||
Payable for investments purchased on a delayed-delivery basis |
5,297 | 1,706 | 1,775 | 584 | 1,561 | |||||||||||||||
Payable for TBA investments purchased |
0 | 0 | 175 | 0 | 0 | |||||||||||||||
Payable for unfunded loan commitments |
20,229 | 7,861 | 3,785 | 3,066 | 6,942 | |||||||||||||||
Deposits from counterparty |
13,742 | 3,520 | 4,369 | 643 | 3,229 | |||||||||||||||
Distributions payable to common shareholders |
25,812 | 8,481 | 8,982 | 4,064 | 7,094 | |||||||||||||||
Overdraft due to custodian |
0 | 0 | 638 | 0 | 88 | |||||||||||||||
Accrued management fees |
1,327 | 574 | 526 | 274 | 658 | |||||||||||||||
Accrued taxes payable |
314 | 108 | 105 | 0 | 85 | |||||||||||||||
Foreign capital gains tax payable |
641 | 222 | 222 | 9 | 184 | |||||||||||||||
Other liabilities |
364 | 120 | 138 | 113 | 198 | |||||||||||||||
Total Liabilities |
958,945 | 302,141 | 374,071 | 14,325 | 317,158 | |||||||||||||||
Commitments and Contingent Liabilities^ |
||||||||||||||||||||
Net Assets Applicable to Common Shareholders |
$ | 2,507,187 | $ | 870,565 | $ | 847,977 | $ | 381,512 | $ | 685,712 | ||||||||||
Net Assets Applicable to Common Shareholders Consist of: |
||||||||||||||||||||
Par value^^ |
$ | 2 | $ | 1 | $ | 2 | $ | 0 | $ | 1 | ||||||||||
Paid in capital in excess of par |
3,020,360 | 1,040,862 | 1,204,542 | 481,829 | 898,109 | |||||||||||||||
Distributable earnings (accumulated loss) |
(513,175 | ) | (170,298 | ) | (356,567 | ) | (100,317 | ) | (212,398 | ) | ||||||||||
Net Assets Applicable to Common Shareholders |
$ | 2,507,187 | $ | 870,565 | $ | 847,977 | $ | 381,512 | $ | 685,712 | ||||||||||
Net Asset Value per Common Share (a) |
$ | 11.49 | $ | 11.50 | $ | 4.53 | $ | 7.64 | $ | 6.94 | ||||||||||
| 218,139 | 75,691 | 49,941 | 98,819 | |||||||||||||||||
Cost of investments in securities |
$ | 3,209,277 | $ | 1,078,541 | $ | 1,176,753 | $ | 378,897 | $ | 955,827 | ||||||||||
Cost of investments in Affiliates |
$ | 204,754 | $ | 76,413 | $ | 71,610 | $ | 40,170 | $ | 57,490 | ||||||||||
Cost of foreign currency held |
$ | 1,237 | $ | 966 | $ | 2,368 | $ | 552 | $ | 1,646 | ||||||||||
Cost or premiums of financial derivative instruments, net |
$ | (33,180 | ) | $ | (22,630 | ) | $ | 55,944 | $ | (3,979 | ) | $ | (15,822 | ) | ||||||
† |
A zero balance may reflect actual amounts rounding to less than one thousand. |
^ |
See Note 9, Fees and Expenses, in the Notes to Financial Statements for more information. |
^^ |
($0.00001 per share) |
(a) |
Includes adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere by the Funds. |
26 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
Statements of Operations |
Year Ended June 30, 2026 |
||||||||||||||||||||
(Amounts in thousands † |
PIMCO Corporate & Income Opportunity Fund |
PIMCO Corporate & Income Strategy Fund |
PIMCO High Income Fund |
PIMCO Income Strategy Fund |
PIMCO Income Strategy Fund II |
|||||||||||||||
Investment Income: |
||||||||||||||||||||
Interest, net of foreign taxes* |
$ | 267,105 | $ | 92,430 | $ | 95,387 | $ | 35,225 | $ | 85,102 | ||||||||||
Dividends, net of foreign taxes** |
4,988 | 1,974 | 4,149 | 1,255 | 2,662 | |||||||||||||||
Dividends from Investments in Affiliates |
3,609 | 1,266 | 1,527 | 1,594 | 754 | |||||||||||||||
Miscellaneous income |
4,088 | 1,169 | 1,230 | 0 | 0 | |||||||||||||||
Total Income |
279,790 | 96,839 | 102,293 | 38,074 | 88,518 | |||||||||||||||
Expenses: |
||||||||||||||||||||
Management fees |
15,729 | 6,857 | 6,359 | 3,527 | 7,449 | |||||||||||||||
Trustee fees and related expenses |
217 | 77 | 79 | 36 | 66 | |||||||||||||||
Interest expense |
20,840 | 5,991 | 8,471 | 1,334 | 8,476 | |||||||||||||||
Miscellaneous expense |
96 | 39 | 40 | 19 | 41 | |||||||||||||||
Total Expenses |
36,882 | 12,964 | 14,949 | 4,916 | 16,032 | |||||||||||||||
Net Investment Income (Loss) |
242,908 | 83,875 | 87,344 | 33,158 | 72,486 | |||||||||||||||
Net Realized Gain (Loss): |
||||||||||||||||||||
Investments in securities |
9,111 | 454 | (16,711 | ) | (4,560 | ) | (1,755 | ) | ||||||||||||
Investments in Affiliates |
91 | 10 | 31 | 19 | 7 | |||||||||||||||
Exchange-traded or centrally cleared financial derivative instruments |
1,110 | 624 | 4,936 | 324 | (136 | ) | ||||||||||||||
Over the counter financial derivative instruments |
3,047 | 573 | 429 | 205 | (524 | ) | ||||||||||||||
Foreign currency |
2,160 | (593 | ) | (195 | ) | (318 | ) | (794 | ) | |||||||||||
Net Realized Gain (Loss) |
15,519 | 1,068 | (11,510 | ) | (4,330 | ) | (3,202 | ) | ||||||||||||
Net Change in Unrealized Appreciation (Depreciation): |
||||||||||||||||||||
Investments in securities, net of foreign capital gains tax*** |
(36,775 | ) | (9,396 | ) | 15,085 | 1,078 | (704 | ) | ||||||||||||
Investments in Affiliates |
7,552 | 0 | (9 | ) | (4 | ) | 3 | |||||||||||||
Exchange-traded or centrally cleared financial derivative instruments |
(36,612 | ) | (13,524 | ) | (11,781 | ) | (4,092 | ) | (8,294 | ) | ||||||||||
Over the counter financial derivative instruments |
10,041 | 4,366 | 4,466 | 1,648 | 4,584 | |||||||||||||||
Foreign currency assets and liabilities |
2,819 | 601 | 1,046 | 493 | 1,772 | |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) |
(52,975 | ) | (17,953 | ) | 8,807 | (877 | ) | (2,639 | ) | |||||||||||
Net Increase (Decrease) in Net Assets Applicable to Common Shareholders Resulting from Operations |
$ | 205,452 | $ | 66,990 | $ | 84,641 | $ | 27,951 | $ | 66,645 | ||||||||||
* Foreign tax withholdings - Interest |
$ | 1,245 | $ | 436 | $ | 462 | $ | 64 | $ | 392 | ||||||||||
** Foreign tax withholdings - Dividends |
$ | 324 | $ | 103 | $ | 133 | $ | 79 | $ | 157 | ||||||||||
*** Foreign capital gains tax |
$ | (314 | ) | $ | (108 | ) | $ | (105 | ) | $ | 0 | $ | (85 | ) | ||||||
† |
A zero balance may reflect actual amounts rounding to less than one thousand. |
ANNUAL REPORT |
| | JUNE 30, 2026 | 27 |
Statements of Changes in Net Assets |
PIMCO Corporate & Income Opportunity Fund |
PIMCO Corporate & Income Strategy Fund |
|||||||||||||||
(Amounts in thousands † |
Year Ended June 30, 2026 |
Year Ended June 30, 2025 |
Year Ended June 30, 2026 |
Year Ended June 30, 2025 |
||||||||||||
Increase (Decrease) in Net Assets from: |
||||||||||||||||
Operations: |
||||||||||||||||
Net investment income (loss) |
$ | 242,908 | $ | 221,245 | $ | 83,875 | $ | 75,410 | ||||||||
Net realized gain (loss) |
15,519 | (17,681 | ) | 1,068 | 7,445 | |||||||||||
Net change in unrealized appreciation (depreciation) |
(52,975 | ) | 71,392 | (17,953 | ) | 12,293 | ||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
205,452 | 274,956 | 66,990 | 95,148 | ||||||||||||
Distributions on auction rate preferred shares from net investment income and/or realized capital gains |
0 | (143 | ) | 0 | (16 | ) | ||||||||||
Net Increase (Decrease) in Net Assets Applicable to Common Shareholders Resulting from Operations |
205,452 | 274,813 | 66,990 | 95,132 | ||||||||||||
Distributions to Common Shareholders: |
||||||||||||||||
From net investment income and/or net realized capital gains |
(264,390 | ) | (226,124 | ) | (91,543 | ) | (79,550 | ) | ||||||||
Tax basis return of capital |
(30,031 | ) | (26,135 | ) | (5,722 | ) | (5,046 | ) | ||||||||
Total Distributions to Common Shareholders (a) |
(294,421 | ) | (252,259 | ) | (97,265 | ) | (84,596 | ) | ||||||||
Common Share Transactions*: |
||||||||||||||||
Net proceeds from at-the-market |
311,723 | 376,085 | 98,486 | 114,865 | ||||||||||||
Issued as reinvestment of distributions |
37,657 | 30,794 | 10,010 | 9,076 | ||||||||||||
Net increase (decrease) resulting from common share transactions |
349,380 | 406,879 | 108,496 | 123,941 | ||||||||||||
Total increase (decrease) in net assets applicable to common shareholders |
260,411 | 429,433 | 78,221 | 134,477 | ||||||||||||
Net Assets Applicable to Common Shareholders: |
||||||||||||||||
Beginning of year |
2,246,776 | 1,817,343 | 792,344 | 657,867 | ||||||||||||
End of year |
$ | 2,507,187 | $ | 2,246,776 | $ | 870,565 | $ | 792,344 | ||||||||
*Common Share Transactions: |
||||||||||||||||
Shares sold |
23,527 | 26,627 | 7,805 | 8,620 | ||||||||||||
Shares issued as reinvestment of distributions |
3,017 | 2,254 | 834 | 704 | ||||||||||||
Net increase (decrease) in common shares outstanding |
26,544 | 28,881 | 8,639 | 9,324 | ||||||||||||
† |
A zero balance may reflect actual amounts rounding to less than one thousand. |
* |
See Note 13, Common Shares Offering in the Notes to Financial Statements. |
(a) |
The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions — Common Shares, in the Notes to Financial Statements for more information. |
28 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
PIMCO High Income Fund |
PIMCO Income Strategy Fund |
PIMCO Income Strategy Fund II |
||||||||||||||||||||
Year Ended June 30, 2026 |
Year Ended June 30, 2025 |
Year Ended June 30, 2026 |
Year Ended June 30, 2025 |
Year Ended June 30, 2026 |
Year Ended June 30, 2025 |
|||||||||||||||||
| $ | 87,344 | $ | 82,865 | $ | 33,158 | $ | 35,585 | $ | 72,486 | $ | 73,259 | |||||||||||
| (11,510 | ) | 19,200 | (4,330 | ) | (548 | ) | (3,202 | ) | 4,380 | |||||||||||||
| 8,807 | 1,400 | (877 | ) | 12,214 | (2,639 | ) | 14,630 | |||||||||||||||
| 84,641 | 103,465 | 27,951 | 47,251 | 66,645 | 92,269 | |||||||||||||||||
| 0 | (23 | ) | 0 | (14 | ) | 0 | (113 | ) | ||||||||||||||
84,641 |
103,442 | 27,951 | 47,237 | 66,645 | 92,156 | |||||||||||||||||
| (94,121 | ) | (88,008 | ) | (34,877 | ) | (35,875 | ) | (76,278 | ) | (74,845 | ) | |||||||||||
| (10,588 | ) | (8,315 | ) | (12,006 | ) | (6,481 | ) | (7,587 | ) | (3,639 | ) | |||||||||||
| (104,709 | ) | (96,323 | ) | (46,883 | ) | (42,356 | ) | (83,865 | ) | (78,484 | ) | |||||||||||
| 52,696 | 67,013 | 34,027 | 35,071 | 25,301 | 40,121 | |||||||||||||||||
| 10,591 | 9,687 | 3,760 | 3,320 | 8,143 | 7,400 | |||||||||||||||||
| 63,287 | 76,700 | 37,787 | 38,391 | 33,444 | 47,521 | |||||||||||||||||
| 43,219 | 83,819 | 18,855 | 43,272 | 16,224 | 61,193 | |||||||||||||||||
| 804,758 | 720,939 | 362,657 | 319,385 | 669,488 | 608,295 | |||||||||||||||||
| $ | 847,977 | $ | 804,758 | $ | 381,512 | $ | 362,657 | $ | 685,712 | $ | 669,488 | |||||||||||
| 10,865 | 13,776 | 4,092 | 4,200 | 3,399 | 5,409 | |||||||||||||||||
| 2,286 | 2,068 | 474 | 412 | 1,146 | 1,038 | |||||||||||||||||
| 13,151 | 15,844 | 4,566 | 4,612 | 4,545 | 6,447 | |||||||||||||||||
ANNUAL REPORT |
| | JUNE 30, 2026 | 29 |
Statements of Cash Flows |
Year Ended June 30, 2026 |
||||||||||||||||||||
(Amounts in thousands†) |
PIMCO Corporate & Income Opportunity Fund |
PIMCO Corporate & Income Strategy Fund |
PIMCO High Income Fund |
PIMCO Income Strategy Fund |
PIMCO Income Strategy Fund II |
|||||||||||||||
Cash Flows Provided by (Used for) Operating Activities: |
||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations |
$ | 205,452 | $ | 66,990 | $ | 84,641 | $ | 27,951 | $ | 66,645 | ||||||||||
Adjustments to Reconcile Net Increase (Decrease) in Net Assets from Operations to Net Cash Provided by (Used for) Operating Activities: |
||||||||||||||||||||
Purchases of long-term securities |
(2,139,770 | ) | (693,871 | ) | (735,435 | ) | (78,857 | ) | (502,593 | ) | ||||||||||
Proceeds from sales of long-term securities |
1,543,595 | 532,254 | 525,316 | 110,672 | 421,509 | |||||||||||||||
(Purchases) Proceeds from sales of short-term portfolio investments, net |
(96,350 | ) | (38,190 | ) | (29,044 | ) | 2,584 | (49,272 | ) | |||||||||||
(Increase) decrease in deposits with counterparty |
(24,716 | ) | (20,129 | ) | (18,248 | ) | (2,610 | ) | (15,420 | ) | ||||||||||
(Increase) decrease in receivable for investments sold |
(81,899 | ) | (31,936 | ) | (21,097 | ) | (1,726 | ) | (19,075 | ) | ||||||||||
(Increase) decrease in interest and/or dividends receivable |
(8,523 | ) | (1,882 | ) | (2,374 | ) | 914 | (974 | ) | |||||||||||
(Increase) decrease in dividends receivable from Affiliates |
(11 | ) | 9 | (11 | ) | 23 | (64 | ) | ||||||||||||
Proceeds from (Payments on) exchange-traded or centrally cleared financial derivative instruments |
(31,271 | ) | (11,307 | ) | (6,373 | ) | (3,211 | ) | (7,197 | ) | ||||||||||
Proceeds from (Payments on) over the counter financial derivative instruments |
4,904 | 3,097 | 2,120 | 819 | 1,438 | |||||||||||||||
(Increase) decrease in other assets |
(468 | ) | 399 | (649 | ) | 205 | 83 | |||||||||||||
Increase (decrease) in payable for investments purchased |
13,344 | (14,342 | ) | 3,627 | (2,155 | ) | 4,918 | |||||||||||||
Increase (decrease) in deposits from counterparty |
6,597 | 2,218 | 3,541 | 63 | 795 | |||||||||||||||
Increase (decrease) in accrued management fees |
185 | 72 | 45 | (5 | ) | 142 | ||||||||||||||
Proceeds from short sales transactions |
0 | 0 | 175 | 0 | 0 | |||||||||||||||
Payments on short sales transactions |
0 | 0 | (175 | ) | 0 | 0 | ||||||||||||||
Proceeds from (Payments on) foreign currency transactions |
3,275 | (226 | ) | 494 | 81 | 494 | ||||||||||||||
Increase (decrease) in foreign capital gains tax payable |
619 | 214 | 211 | 3 | 174 | |||||||||||||||
Increase (decrease) in other liabilities |
35 | 12 | 12 | (1 | ) | 10 | ||||||||||||||
Net Realized (Gain) Loss |
||||||||||||||||||||
Investments in securities |
(9,111 | ) | (454 | ) | 16,711 | 4,560 | 1,755 | |||||||||||||
Investments in Affiliates |
(91 | ) | (10 | ) | (31 | ) | (19 | ) | (7 | ) | ||||||||||
Exchange-traded or centrally cleared financial derivative instruments |
(1,110 | ) | (624 | ) | (4,936 | ) | (324 | ) | 136 | |||||||||||
Over the counter financial derivative instruments |
(3,047 | ) | (573 | ) | (429 | ) | (205 | ) | 524 | |||||||||||
Foreign currency |
(2,160 | ) | 593 | 195 | 318 | 794 | ||||||||||||||
Net Change in Unrealized (Appreciation) Depreciation |
||||||||||||||||||||
Investments in securities |
36,775 | 9,396 | (15,085 | ) | (1,078 | ) | 704 | |||||||||||||
Investments in Affiliates |
(7,552 | ) | 0 | 9 | 4 | (3 | ) | |||||||||||||
Exchange-traded or centrally cleared financial derivative instruments |
36,612 | 13,524 | 11,781 | 4,092 | 8,294 | |||||||||||||||
Over the counter financial derivative instruments |
(10,041 | ) | (4,366 | ) | (4,466 | ) | (1,648 | ) | (4,584 | ) | ||||||||||
Foreign currency assets and liabilities |
(2,819 | ) | (601 | ) | (1,046 | ) | (493 | ) | (1,772 | ) | ||||||||||
Net amortization (accretion) on investments |
(42,256 | ) | (15,118 | ) | (16,186 | ) | (5,457 | ) | (14,011 | ) | ||||||||||
Net Cash Provided by (Used for) Operating Activities |
(609,802 | ) | (204,851 | ) | (206,707 | ) | 54,500 | (106,557 | ) | |||||||||||
Cash Flows Received from (Used for) Financing Activities: |
||||||||||||||||||||
Net proceeds from at-the-market offering |
314,955 | 98,492 | 52,989 | 34,114 | 25,205 | |||||||||||||||
Increase (decrease) in overdraft due to custodian |
(500 | ) | (334 | ) | 638 | 0 | 88 | |||||||||||||
Cash distributions paid to common shareholders* |
(253,537 | ) | (86,249 | ) | (93,465 | ) | (42,739 | ) | (75,380 | ) | ||||||||||
Proceeds from reverse repurchase agreements |
4,844,722 | 1,435,483 | 1,845,537 | 288,618 | 1,667,703 | |||||||||||||||
Payments on reverse repurchase agreements |
(4,299,504 | ) | (1,243,842 | ) | (1,600,418 | ) | (334,439 | ) | (1,512,029 | ) | ||||||||||
Proceeds from sale-buyback transactions |
412 | 467 | 0 | 0 | 0 | |||||||||||||||
Payments on sale-buyback transactions |
(412 | ) | (467 | ) | 0 | 0 | 0 | |||||||||||||
Net Cash Received from (Used for) Financing Activities |
606,136 | 203,550 | 205,281 | (54,446 | ) | 105,587 | ||||||||||||||
Net Increase (Decrease) in Cash and Foreign Currency |
(3,666 | ) | (1,301 | ) | (1,426 | ) | 54 | (970 | ) | |||||||||||
Cash and Foreign Currency: |
||||||||||||||||||||
Beginning of year |
5,395 | 2,370 | 3,791 | 538 | 2,614 | |||||||||||||||
End of year |
$ | 1,729 | $ | 1,069 | $ | 2,365 | $ | 592 | $ | 1,644 | ||||||||||
* Reinvestment of distributions to common shareholders |
$ | 37,657 | $ | 10,010 | $ | 10,591 | $ | 3,760 | $ | 8,143 | ||||||||||
Supplemental Disclosure of Cash Flow Information: |
||||||||||||||||||||
Interest expense paid during the year |
$ | 19,167 | $ | 5,237 | $ | 7,319 | $ | 1,662 | $ | 7,944 | ||||||||||
Non-Cash Payment In-Kind |
$ | 17,396 | $ | 5,848 | $ | 6,932 | $ | 3,462 | $ | 6,674 | ||||||||||
† |
A zero balance may reflect actual amounts rounding to less than one thousand. |
A Statement of Cash Flows is presented when a Fund has a significant amount of borrowing during the year, based on the average total borrowing outstanding in relation to total assets or when substantially all of a Fund’s investments are not classified as Level 1 or 2 in the fair value hierarchy.
30 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
Schedule of Investments |
PIMCO Corporate & Income Opportunity Fund |
June 30, 2026 |
(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
INVESTMENTS IN SECURITIES 119.2% |
||||||||||||
LOAN PARTICIPATIONS AND ASSIGNMENTS 38.8% |
||||||||||||
ADI Global Distribution Funding LLC |
||||||||||||
TBD% due 06/17/2033 |
$ |
1,000 |
$ |
1,004 |
||||||||
Aligned Data Centers International LP |
||||||||||||
7.164% due 05/16/2028 «~ |
10,271 |
10,271 |
||||||||||
Altar Bidco, Inc. |
||||||||||||
9.108% (TSFR12M + 0.000%) due 02/01/2030 ~ |
3,450 |
3,260 |
||||||||||
Altice France SA |
||||||||||||
6.579% (EUR003M + 2.204%) due 04/30/2028 ~ |
EUR |
6,904 |
7,923 |
|||||||||
6.579% (EUR003M + 2.240%) due 10/30/2028 ~ |
2,886 |
3,307 |
||||||||||
7.798% (TSFR3M + 3.673%) due 04/30/2028 ~ |
$ |
1,314 |
1,321 |
|||||||||
8.735% - 8.736% (TSFR3M + 3.673%) due 10/30/2028 ~ |
6,739 |
6,744 |
||||||||||
9.048% (TSFR3M + 3.653%) due 05/14/2029 ~ |
1,671 |
1,679 |
||||||||||
9.079% (EUR003M + 2.240%) due 05/30/2031 ~ |
EUR |
13,265 |
15,490 |
|||||||||
10.548% (TSFR3M + 3.673%) due 05/31/2031 ~ |
$ |
19,775 |
20,230 |
|||||||||
Bausch Health Cos., Inc. |
||||||||||||
9.894% (TSFR1M + 3.644%) due 10/08/2030 ~ |
32,076 |
31,179 |
||||||||||
BDO USA PC |
||||||||||||
8.121% (TSFR1M + 3.621%) due 08/31/2028 «~ |
515 |
509 |
||||||||||
8.648% (TSFR3M + 3.643%) due 08/31/2028 «~ |
6,721 |
6,712 |
||||||||||
Central Parent, Inc. |
||||||||||||
6.982% (TSFR3M + 3.732%) due 07/06/2029 ~ |
35,245 |
23,262 |
||||||||||
Clover Holdings 2 LLC |
||||||||||||
TBD% - 4.000% due 12/10/2029 «µ |
2,209 |
2,039 |
||||||||||
7.375% (TSFR1M + 3.633%) due 12/09/2031 ~ |
2,166 |
2,073 |
||||||||||
Comexposium SAS |
||||||||||||
TBD% (EUR012M + 2.258%) due 07/10/2031 «~ |
EUR |
24,800 |
35,704 |
|||||||||
Coreweave Compute Acquisition Co. IV LLC |
||||||||||||
9.661% - 9.732% (TSFR3M + 3.666%) due 05/16/2029 «~ |
$ |
11,301 |
11,653 |
|||||||||
Crowe LLP |
||||||||||||
TBD% due 05/13/2033 «µ |
9,400 |
9,314 |
||||||||||
TBD% - 0.500% due 05/13/2033 «µ |
700 |
693 |
||||||||||
Cyberswift U.S. Finco LLC |
||||||||||||
7.427% (TSFR3M + 3.677%) due 10/08/2032 ~ |
2,900 |
2,896 |
||||||||||
Databricks, Inc. |
||||||||||||
TBD% - 1.000% due 01/05/2032 µ |
1,087 |
1,087 |
||||||||||
8.114% (TSFR1M + 3.612%) due 01/05/2032 ~ |
4,913 |
4,907 |
||||||||||
Dialysis Holdco LLC |
||||||||||||
9.644% (TSFR1M + 3.644%) due 11/26/2030 «~ |
24,786 |
25,189 |
||||||||||
Discovery Global Holdings, Inc. |
||||||||||||
6.144% (TSFR1M + 3.644%) due 06/03/2033 ~ |
18,733 |
18,761 |
||||||||||
Dun & Bradstreet Corp. |
||||||||||||
TBD% - 9.121% (TSFR1M + 3.621%) due 08/26/2032 «~µ |
493 |
487 |
||||||||||
9.153% (TSFR1M + 3.644%) due 08/26/2032 «~ |
4,903 |
4,623 |
||||||||||
Encina Private Credit LLC |
||||||||||||
TBD% due 11/30/2026 «~ |
381 |
326 |
||||||||||
Envalior Finance GmbH |
||||||||||||
7.650% (EUR003M + 2.150%) due 03/29/2030 ~ |
EUR |
5,400 |
5,743 |
|||||||||
Finastra USA, Inc. |
||||||||||||
7.746% (TSFR6M + 3.751%) due 09/15/2032 ~ |
$ |
32,593 |
30,133 |
|||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
10.751% (TSFR6M + 3.751%) due 09/15/2033 «~ |
$ |
10,172 |
$ |
8,951 |
||||||||
Forward Air Corp. |
||||||||||||
8.163% (TSFR3M + 3.663%) due 12/19/2030 ~ |
30,334 |
28,682 |
||||||||||
Gaia Purchaser, Inc. |
||||||||||||
TBD% due 06/25/2033 « |
1,400 |
1,402 |
||||||||||
Galaxy U.S. Opco, Inc. (5.663% Cash and 3.250% PIK) |
||||||||||||
8.913% (TSFR3M + 3.663%) due 07/31/2030 ~(c) |
23,760 |
21,845 |
||||||||||
Gateway Casinos & Entertainment Ltd. |
||||||||||||
9.918% (TSFR3M + 3.668%) due 12/18/2030 ~ |
13,929 |
13,903 |
||||||||||
Ineos U.S. Finance LLC |
||||||||||||
6.894% (TSFR1M + 3.644%) due 02/18/2030 ~ |
12,535 |
11,576 |
||||||||||
ION Platform Finance SARL |
||||||||||||
6.291% (EUR003M + 2.324%) due 10/07/2032 ~ |
EUR |
4,688 |
4,007 |
|||||||||
ION Platform Finance U.S., Inc. |
||||||||||||
7.482% (TSFR3M + 3.732%) due 10/07/2032 ~ |
$ |
12,174 |
8,811 |
|||||||||
Ivanti Software, Inc. |
||||||||||||
TBD% - 9.414% (TSFR3M + 3.658%) due 06/01/2029 ~µ |
3,428 |
3,330 |
||||||||||
8.414% (TSFR3M + 3.658%) due 06/01/2029 ~ |
25,651 |
11,351 |
||||||||||
J&J Ventures Gaming LLC |
||||||||||||
8.758% (TSFR1M + 3.644%) due 04/26/2028 «~ |
3,154 |
3,154 |
||||||||||
Lealand Finance Co. BV |
||||||||||||
6.758% (TSFR1M + 3.644%) due 06/30/2027 ~ |
189 |
183 |
||||||||||
Lealand Finance Co. BV (4.758% Cash and 3.000% PIK) |
||||||||||||
7.758% (TSFR1M + 3.644%) due 12/31/2027 ~(c) |
2,458 |
2,378 |
||||||||||
Magenta Security Holdings LLC |
||||||||||||
9.913% (TSFR3M + 3.663%) due 07/27/2028 ~ |
283 |
279 |
||||||||||
10.173% (TSFR3M + 3.663%) due 07/27/2028 ~ |
1,380 |
238 |
||||||||||
10.673% (TSFR3M + 3.663%) due 07/27/2028 ~ |
297 |
201 |
||||||||||
10.923% (TSFR3M + 3.663%) due 07/27/2028 ~ |
388 |
148 |
||||||||||
McAfee LLC |
||||||||||||
6.644% (TSFR1M + 3.644%) due 03/01/2029 ~ |
15,301 |
13,640 |
||||||||||
Mercury Aggregator LP |
||||||||||||
TBD% due 04/03/2027 « |
4,506 |
0 |
||||||||||
MH Sub I LLC |
||||||||||||
7.894% (TSFR1M + 3.644%) due 12/31/2031 ~ |
5,910 |
5,137 |
||||||||||
MPH Acquisition Holdings LLC |
||||||||||||
7.413% (TSFR3M + 3.663%) due 12/31/2030 ~ |
16,414 |
16,468 |
||||||||||
8.263% (TSFR3M + 3.663%) due 12/31/2030 ~ |
24,144 |
21,320 |
||||||||||
Newfold Digital Holdings Group, Inc. |
||||||||||||
7.214% (TSFR1M + 3.612%) due 04/30/2029 ~ |
8,736 |
6,515 |
||||||||||
9.364% (TSFR1M + 3.612%) due 04/30/2029 ~ |
651 |
529 |
||||||||||
Nscale AS |
||||||||||||
TBD% - 8.664% (TSFR3M + 3.670%) due 08/23/2032 «~µ |
6,259 |
6,260 |
||||||||||
Paradigm Parent LLC |
||||||||||||
8.232% (TSFR3M + 3.732%) due 04/16/2032 ~ |
596 |
513 |
||||||||||
Peraton Corp. |
||||||||||||
7.513% (TSFR3M + 3.663%) due 02/01/2028 ~ |
62,669 |
56,715 |
||||||||||
11.516% (TSFR3M + 3.666%) due 02/01/2029 ~ |
6,306 |
4,288 |
||||||||||
Polaris Newco LLC |
||||||||||||
6.150% (EUR003M + 2.150%) due 06/02/2028 ~ |
EUR |
22,540 |
22,380 |
|||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
7.925% (TSFR3M + 3.663%) due 06/02/2028 ~ |
$ |
27,152 |
$ |
23,666 |
||||||||
Poseidon Bidco SASU |
||||||||||||
7.504% due 03/13/2030 |
EUR |
6,500 |
2,154 |
|||||||||
Project Alpha Intermediate Holding, Inc. |
||||||||||||
6.982% (TSFR3M + 3.732%) due 10/26/2030 ~ |
$ |
5 |
3 |
|||||||||
Promotora de Informaciones SA |
||||||||||||
7.674% (EUR003M + 2.168%) due 12/31/2029 «~ |
EUR |
57,292 |
63,989 |
|||||||||
QXO, Inc. |
||||||||||||
TBD% due 04/30/2032 |
$ |
4,700 |
4,695 |
|||||||||
SCUR-Alpha 1503 GmbH |
||||||||||||
9.163% (TSFR3M + 3.663%) due 04/01/2030 ~ |
20,802 |
18,169 |
||||||||||
Softbank Vision Fund II |
||||||||||||
7.382% (TSFR3M + 3.732%) due 04/25/2029 «~ |
15,913 |
16,191 |
||||||||||
Spruce Bidco II, Inc. |
||||||||||||
TBD% - 8.461% (TSFR6M + 3.621%) due 01/30/2032 «~µ |
764 |
764 |
||||||||||
5.977% (JY0003M + 0.000%) due 01/30/2032 «~ |
JPY |
64,951 |
403 |
|||||||||
7.047% (CDOR06 + 0.000%) due 01/30/2032 «~ |
CAD |
607 |
431 |
|||||||||
8.413% (TSFR3M + 3.663%) due 01/30/2032 «~ |
$ |
3,355 |
3,377 |
|||||||||
Steenbok Lux Finco 2 SARL |
||||||||||||
1TBD% due 12/31/2028 |
EUR |
54,348 |
25,070 |
|||||||||
Stepstone Group Midco 2 GmbH |
||||||||||||
6.885% (EUR006M + 2.459%) due 04/26/2032 ~ |
15,900 |
14,914 |
||||||||||
8.176% - 8.179% (TSFR6M + 3.679%) due 12/19/2031 ~ |
$ |
28,440 |
23,054 |
|||||||||
Stonepeak Bayou Holdings LP |
||||||||||||
6.482% (TSFR3M + 3.732%) due 10/01/2032 ~ |
11,072 |
11,063 |
||||||||||
Stormlight |
||||||||||||
8.370% due 05/13/2030 «~ |
10,357 |
10,357 |
||||||||||
Subcalidora 2 |
||||||||||||
8.041% (EUR003M + 2.291%) due 08/14/2029 «~ |
EUR |
18,000 |
20,456 |
|||||||||
Syniverse Holdings, Inc. |
||||||||||||
10.732% (TSFR3M + 3.732%) due 05/13/2027 ~ |
$ |
47,737 |
41,634 |
|||||||||
TransDigm, Inc. |
||||||||||||
6.144% (TSFR1M + 3.644%) due 02/13/2033 ~ |
6,100 |
6,107 |
||||||||||
U.S. Renal Care, Inc. |
||||||||||||
8.758% (TSFR1M + 3.644%) due 06/28/2028 ~ |
57,301 |
56,494 |
||||||||||
Unicorn Bay |
||||||||||||
13.000% due 12/31/2026 « |
HKD |
85,302 |
11,012 |
|||||||||
Upfield BV |
||||||||||||
8.980% due 10/31/2030 ~ |
GBP |
32,500 |
41,299 |
|||||||||
Virgin Media Bristol LLC |
||||||||||||
6.967% (TSFR6M + 3.692%) due 03/31/2031 ~ |
$ |
2,700 |
2,403 |
|||||||||
6.990% (TSFR1M + 3.633%) due 01/31/2029 ~ |
9,100 |
8,742 |
||||||||||
Westmoreland Coal Co. |
||||||||||||
8.000% due 03/15/2029 « |
1,240 |
713 |
||||||||||
Worthington Steel, Inc. |
||||||||||||
7.620% - 7.621% (TSFR1M + 3.624%) due 06/01/2033 ~ |
3,600 |
3,596 |
||||||||||
Total Loan Participations and Assignments (Cost $1,047,762) |
973,479 |
|||||||||||
CORPORATE BONDS & NOTES 38.0% |
||||||||||||
BANKING & FINANCE 8.3% |
||||||||||||
123 Lights Re Ltd. |
||||||||||||
14.520% (FHMMUSTF + 11.000%) due 09/14/2031 ~ |
450 |
474 |
||||||||||
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 31 |
Schedule of Investments |
PIMCO Corporate & Income Opportunity Fund |
(Cont.) |
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
Alamo Re Ltd. |
||||||||||||
11.039% (T-BILL 1MO + 7.250%) due 06/07/2028 ~ |
$ |
250 |
$ |
250 |
||||||||
14.289% (T-BILL 1MO + 10.500%) due 06/07/2028 ~ |
2,400 |
2,397 |
||||||||||
Antares Holdings LP |
||||||||||||
6.350% due 10/23/2029 (n) |
1,150 |
1,146 |
||||||||||
Armor Holdco, Inc. |
||||||||||||
8.500% due 11/15/2029 (n) |
13,000 |
13,086 |
||||||||||
Armor RE II Ltd. |
||||||||||||
12.050% (BRMMUSDF + 8.500%) due 01/07/2032 ~ |
350 |
369 |
||||||||||
13.750% (BRMMUSDF + 10.200%) due 05/07/2031 ~ |
250 |
260 |
||||||||||
18.560% (T-BILL 3MO + 14.750%) due 06/07/2033 ~ |
500 |
497 |
||||||||||
Banco Mercantil del Norte SA |
||||||||||||
8.000% due 01/24/2033 •(j)(k)(n) |
5,600 |
5,613 |
||||||||||
8.450% due 06/24/2036 •(j)(k)(n) |
5,600 |
5,614 |
||||||||||
Bayou Re Ltd. |
||||||||||||
10.020% (BNMMDTSC + 6.500%) due 05/09/2033 ~ |
400 |
399 |
||||||||||
11.852% (BNMMDTSC + 8.332%) due 04/30/2031 ~(k) |
300 |
310 |
||||||||||
Blue Owl Capital Corp. |
||||||||||||
6.450% due 09/15/2028 (n) |
2,200 |
2,229 |
||||||||||
Blue Ridge Re Ltd. |
||||||||||||
7.020% (FHMMUSTF + 3.500%) due 01/08/2029 ~ |
250 |
250 |
||||||||||
BOI Finance BV |
||||||||||||
7.500% due 02/16/2027 (n) |
EUR |
6,400 |
7,460 |
|||||||||
Bonanza RE Ltd. |
||||||||||||
3.510% (MSMMUSTF + 0.000%) due 01/08/2027 ~ |
$ |
550 |
500 |
|||||||||
Buttonwood RE Ltd. |
||||||||||||
8.550% (BRMMUSDF + 5.000%) due 05/29/2029 ~ |
300 |
300 |
||||||||||
Cape Lookout Re Ltd. |
||||||||||||
8.770% (FHMMUSTF + 5.250%) due 03/21/2033 ~ |
450 |
445 |
||||||||||
9.520% (FHMMUSTF + 6.000%) due 03/21/2033 ~ |
450 |
450 |
||||||||||
12.226% (GSMMUSTF + 8.702%) due 04/05/2027 ~ |
2,200 |
2,196 |
||||||||||
CI Financial Corp. |
||||||||||||
7.500% due 05/30/2029 (n) |
3,000 |
3,145 |
||||||||||
Citrus Re Ltd. |
||||||||||||
9.060% (T-BILL 3MO + 5.250%) due 06/07/2033 ~ |
250 |
253 |
||||||||||
10.039% (T-BILL 3MO + 6.250%) due 06/07/2033 ~ |
250 |
254 |
||||||||||
Commonwealth RE Ltd. |
||||||||||||
7.407% (JMMMUSTF + 3.857%) due 07/08/2030 ~ |
9,378 |
9,380 |
||||||||||
Credicorp Capital Sociedad Titulizadora SA |
||||||||||||
9.700% due 03/05/2045 |
PEN |
2,900 |
909 |
|||||||||
Credit Suisse AG AT1 Claim |
$ |
6,636 |
2,340 |
|||||||||
East Lane Re VII Ltd. |
||||||||||||
12.050% (BRMMUSDF + 8.500%) due 03/31/2032 ~ |
600 |
603 |
||||||||||
Everglades Re II Ltd. |
||||||||||||
9.289% (T-BILL 1MO + 5.500%) due 05/22/2033 ~ |
250 |
250 |
||||||||||
10.289% (T-BILL 1MO + 6.500%) due 05/22/2033 ~ |
300 |
300 |
||||||||||
12.039% (T-BILL 1MO + 8.250%) due 05/22/2033 ~ |
250 |
250 |
||||||||||
F&G Annuities & Life, Inc. |
||||||||||||
6.250% due 10/04/2034 (n) |
400 |
391 |
||||||||||
6.500% due 06/04/2029 (n) |
600 |
613 |
||||||||||
Ford Motor Credit Co. LLC |
||||||||||||
5.667% (SOFRRATE + 2.030%) due 03/20/2028 ~(n) |
2,400 |
2,431 |
||||||||||
Gateway Re Ltd. |
||||||||||||
5.550% (BRMMUSDF + 2.000%) due 07/06/2029 ~ |
2,700 |
2,700 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
14.430% (BRMMUSDF + 10.880%) due 07/08/2026 ~ |
$ |
250 |
$ |
250 |
||||||||
Golden Bear Re Ltd. |
||||||||||||
13.289% (T-BILL 1MO + 9.500%) due 03/08/2032 ~ |
650 |
656 |
||||||||||
13.300% (JMMMUSTF + 9.750%) due 01/08/2029 ~ |
1,410 |
1,447 |
||||||||||
Greengrove RE Ltd. |
||||||||||||
11.270% (BNMMDTSC + 7.750%) due 04/08/2032 ~ |
400 |
408 |
||||||||||
GSPA Monetization Trust |
||||||||||||
6.422% due 10/09/2029 |
2,828 |
2,832 |
||||||||||
Hampton Roads PPV LLC |
||||||||||||
6.171% due 06/15/2053 (n) |
1,800 |
1,420 |
||||||||||
Handshake Re Ltd. |
||||||||||||
8.050% (JMMMUSTF + 4.500%) due 01/08/2030 ~ |
250 |
246 |
||||||||||
Herbie Re Ltd. |
||||||||||||
7.760% (MSMMUSTF + 4.250%) due 01/07/2030 ~ |
250 |
250 |
||||||||||
Hestia Re Ltd. |
||||||||||||
3.520% (BNMMDTSC + 0.000%) due 04/16/2027 ~ |
250 |
186 |
||||||||||
3.620% (BNMMDTSC + 0.100%) due 04/22/2029 ~ |
54 |
30 |
||||||||||
10.270% (BNMMDTSC + 6.750%) due 03/13/2032 ~ |
250 |
256 |
||||||||||
11.770% (BNMMDTSC + 8.250%) due 03/13/2032 ~ |
250 |
255 |
||||||||||
IIFL Finance Ltd. |
||||||||||||
7.600% due 09/10/2029 |
1,100 |
1,106 |
||||||||||
Integrity RE III Ltd. |
||||||||||||
10.520% (FHMMUSTF + 7.000%) due 06/07/2029 ~ |
250 |
250 |
||||||||||
15.770% (FHMMUSTF + 12.250%) due 06/06/2028 ~ |
400 |
414 |
||||||||||
29.020% (FHMMUSTF + 25.500%) due 06/06/2027 ~ |
350 |
366 |
||||||||||
ION Platform Finance SARL |
||||||||||||
6.500% due 09/30/2030 (n) |
EUR |
2,200 |
2,028 |
|||||||||
6.875% due 09/30/2032 (n) |
4,500 |
3,838 |
||||||||||
7.875% due 05/01/2029 (n) |
18,924 |
19,572 |
||||||||||
ION Platform Finance U.S., Inc. |
||||||||||||
7.875% due 09/30/2032 (n) |
$ |
8,100 |
5,879 |
|||||||||
ION Platform Finance U.S., Inc./ION Platform Finance SARL |
||||||||||||
9.000% due 08/01/2029 (n) |
4,830 |
4,302 |
||||||||||
9.500% due 05/30/2029 (n) |
2,700 |
2,466 |
||||||||||
Iron Mountain, Inc. |
||||||||||||
6.250% due 01/15/2035 |
5,100 |
5,126 |
||||||||||
Kona Spc Ltd. |
||||||||||||
5.718% due 09/15/2026 «• |
EUR |
1,800 |
2,057 |
|||||||||
Locke Tavern Re Ltd. |
||||||||||||
6.800% (JMMMUSTF + 3.250%) due 04/11/2033 ~ |
$ |
400 |
398 |
|||||||||
7.800% (JMMMUSTF + 4.250%) due 04/11/2033 ~ |
400 |
401 |
||||||||||
Long Point Re IV Ltd. |
||||||||||||
7.289% (T-BILL 1MO + 3.500%) due 06/01/2034 ~ |
700 |
700 |
||||||||||
Longleaf Pine Re Ltd. |
||||||||||||
21.453% (GSMMUSTI + 17.932%) due 05/27/2031 ~ |
350 |
357 |
||||||||||
Lower Ferry Re Ltd. |
||||||||||||
8.156% (MSMMUSTF + 4.646%) due 07/08/2030 ~ |
1,550 |
1,550 |
||||||||||
9.014% (MSMMUSTF + 5.504%) due 07/08/2030 ~ |
13,050 |
13,053 |
||||||||||
Luca RE Ltd. |
||||||||||||
9.036% (T-BILL 3MO + 5.250%) due 07/09/2032 ~ |
350 |
350 |
||||||||||
10.800% (JMMMUSTF + 7.250%) due 07/22/2031 ~ |
1,000 |
1,040 |
||||||||||
Mayflower Re Ltd. |
||||||||||||
8.565% (FHMMUSTF + 5.045%) due 07/08/2030 ~ |
3,325 |
3,326 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
10.033% (FHMMUSTF + 6.513%) due 07/08/2030 ~ |
$ |
17,345 |
$ |
17,358 |
||||||||
Mercury General Corp. |
||||||||||||
6.250% due 06/15/2036 |
1,600 |
1,629 |
||||||||||
Mountain Re Ltd. |
||||||||||||
10.770% (BNMMDTSC + 7.250%) due 06/07/2033 ~ |
250 |
250 |
||||||||||
Nature Coast Re Ltd. |
||||||||||||
11.789% (T-BILL 3MO + 8.000%) due 02/26/2030 ~ |
500 |
504 |
||||||||||
13.271% (GSMMUSTI + 9.750%) due 04/10/2033 ~ |
300 |
312 |
||||||||||
Nissan Motor Acceptance Co. LLC |
||||||||||||
5.688% (SOFRINDX + 2.050%) due 09/13/2027 ~(n) |
1,100 |
1,094 |
||||||||||
Palm RE Ltd. |
||||||||||||
8.550% (BRMMUSDF + 5.000%) due 06/07/2033 ~ |
400 |
406 |
||||||||||
11.270% (BNMMDTSC + 7.750%) due 06/07/2032 ~ |
400 |
408 |
||||||||||
Polestar Re Ltd. |
||||||||||||
10.550% (BRMMUSDF + 7.000%) due 01/08/2029 ~ |
350 |
351 |
||||||||||
12.550% (BRMMUSDF + 9.000%) due 01/08/2029 ~ |
350 |
354 |
||||||||||
14.140% (BRMMUSDF + 10.590%) due 01/07/2028 ~ |
850 |
886 |
||||||||||
16.800% (BRMMUSDF + 13.250%) due 01/07/2027 ~ |
2,200 |
2,259 |
||||||||||
Purple Re Ltd. |
||||||||||||
10.050% (JMMMUSTF + 6.500%) due 06/07/2033 ~ |
450 |
450 |
||||||||||
12.676% (JMMMUSTF + 9.126%) due 06/06/2031 ~ |
400 |
411 |
||||||||||
Quercus II Re DAC |
||||||||||||
13.324% (EUR003M + 11.000%) due 01/07/2031 ~ |
EUR |
500 |
580 |
|||||||||
Recoletos RE DAC |
||||||||||||
5.289% (T-BILL 3MO + 1.500%) due 07/06/2032 ~ |
$ |
250 |
250 |
|||||||||
Sanders Re III Ltd. |
||||||||||||
15.870% (BRMMUSDF + 12.320%) due 04/09/2029 ~ |
1,688 |
554 |
||||||||||
Starwood Property Trust, Inc. |
||||||||||||
5.250% due 10/15/2028 (n) |
2,100 |
2,092 |
||||||||||
Stingray Compute LLC |
||||||||||||
6.000% due 06/15/2031 |
400 |
401 |
||||||||||
Sutter Re Ltd. |
||||||||||||
7.289% (T-BILL 3MO + 3.500%) due 06/07/2034 ~ |
400 |
400 |
||||||||||
9.289% (T-BILL 3MO + 5.500%) due 06/07/2034 ~ |
300 |
300 |
||||||||||
Titanium 2l Bondco SARL |
||||||||||||
6.250% due 01/14/2031 |
EUR |
21,922 |
3,668 |
|||||||||
Torrey Pines Re Ltd. |
||||||||||||
6.789% (T-BILL 1MO + 3.000%) due 06/07/2034 ~ |
$ |
400 |
403 |
|||||||||
9.586% (JMMMUSTF + 6.036%) due 06/07/2032 ~ |
500 |
514 |
||||||||||
10.656% (JMMMUSTF + 7.106%) due 06/07/2032 ~ |
400 |
412 |
||||||||||
Tremont Re Ltd. |
||||||||||||
7.786% (T-BILL 1MO + 4.000%) due 03/22/2033 ~ |
250 |
249 |
||||||||||
Uniti Group LP/Uniti Fiber Holdings, Inc./CSL Capital LLC |
||||||||||||
6.000% due 01/15/2030 (n) |
20,466 |
20,009 |
||||||||||
Ursa Re II Ltd. |
||||||||||||
8.510% (MSMMUSTF + 5.000%) due 12/07/2029 ~ |
250 |
253 |
||||||||||
11.260% (MSMMUSTF + 7.750%) due 06/07/2028 ~ |
700 |
720 |
||||||||||
Ursa Re Ltd. |
||||||||||||
11.021% (GSMMUSTI + 7.500%) due 02/22/2028 ~ |
1,100 |
1,136 |
||||||||||
12.800% (JMMMUSTF + 9.250%) due 12/07/2028 ~ |
2,300 |
2,343 |
||||||||||
32 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
Veraison Re Ltd. |
||||||||||||
8.521% (GSMMUSTI + 5.000%) due 03/08/2033 ~ |
$ |
250 |
$ |
253 |
||||||||
Windrose Re Ltd. |
||||||||||||
8.782% (HSMMUSTF + 5.250%) due 02/11/2033 ~ |
250 |
250 |
||||||||||
Winston RE Ltd. |
||||||||||||
8.300% (BRMMUSDF + 4.750%) due 05/04/2033 ~ |
300 |
301 |
||||||||||
8.800% (BRMMUSDF + 5.250%) due 05/04/2033 ~ |
300 |
301 |
||||||||||
9.550% (BRMMUSDF + 6.000%) due 05/04/2033 ~ |
250 |
252 |
||||||||||
13.730% (BNMMDTSC + 10.210%) due 02/26/2031 ~ |
280 |
287 |
||||||||||
15.210% (BNMMDTSC + 11.690%) due 02/26/2031 ~ |
1,700 |
1,734 |
||||||||||
Yardstick RE DAC |
||||||||||||
4.274% (EUR003M + 1.950%) due 07/08/2034 «~ |
EUR |
300 |
343 |
|||||||||
209,556 |
||||||||||||
INDUSTRIALS 27.0% |
||||||||||||
ADI Escrow Issuer LLC |
||||||||||||
7.125% due 07/15/2034 |
$ |
600 |
612 |
|||||||||
Altice France Lux 3/Altice Holdings 1 |
||||||||||||
10.000% due 01/15/2033 (n) |
2,261 |
2,227 |
||||||||||
Altice France SA |
||||||||||||
6.875% due 10/15/2030 (n) |
1,064 |
1,033 |
||||||||||
9.500% due 11/01/2029 (n) |
4,302 |
4,371 |
||||||||||
ams-OSRAM AG |
||||||||||||
7.250% due 05/31/2032 |
EUR |
2,540 |
2,995 |
|||||||||
10.500% due 03/30/2029 (n) |
2,334 |
2,845 |
||||||||||
APLD ComputeCo 3 LLC |
||||||||||||
7.000% due 06/15/2031 |
$ |
2,200 |
2,198 |
|||||||||
Aston Martin Capital Holdings Ltd. |
||||||||||||
10.000% due 03/31/2029 (n) |
2,100 |
1,636 |
||||||||||
Australian Metcoal Financing Pty. Ltd. |
||||||||||||
6.250% due 10/22/2031 (n) |
1,800 |
1,833 |
||||||||||
6.750% due 04/22/2034 (n) |
1,900 |
1,961 |
||||||||||
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. |
||||||||||||
8.000% due 02/15/2031 (n) |
1,200 |
1,213 |
||||||||||
Beazer Homes USA, Inc. |
||||||||||||
8.000% due 01/15/2032 |
900 |
905 |
||||||||||
Beignet Investor LLC |
||||||||||||
6.581% due 05/30/2049 (n) |
46,740 |
47,705 |
||||||||||
Centene Corp. |
||||||||||||
3.000% due 10/15/2030 (n) |
1,100 |
996 |
||||||||||
Central Parent LLC/CDK Global II LLC/CDK Financing Co., Inc. |
||||||||||||
8.000% due 06/15/2029 |
2,540 |
1,651 |
||||||||||
Central Parent, Inc./CDK Global, Inc. |
||||||||||||
7.250% due 06/15/2029 |
5,590 |
3,633 |
||||||||||
Cerdia Finanz GmbH |
||||||||||||
9.375% due 10/03/2031 |
6,900 |
6,198 |
||||||||||
Cheplapharm Arzneimittel GmbH |
||||||||||||
7.500% due 05/15/2030 (n) |
EUR |
35,900 |
42,569 |
|||||||||
Cogent Communications Group LLC/Cogent Finance, Inc. |
||||||||||||
6.500% due 07/01/2032 |
$ |
8,500 |
7,658 |
|||||||||
7.000% due 06/15/2027 (n) |
15,335 |
15,236 |
||||||||||
CVR Energy, Inc. |
||||||||||||
7.500% due 02/15/2031 (n) |
3,000 |
2,988 |
||||||||||
CVS Pass-Through Trust |
||||||||||||
7.507% due 01/10/2032 (n) |
935 |
977 |
||||||||||
DISH DBS Corp. |
||||||||||||
5.250% due 12/01/2026 (n) |
24,092 |
23,850 |
||||||||||
5.750% due 12/01/2028 (n) |
33,600 |
32,577 |
||||||||||
7.750% due 07/01/2026 |
18,800 |
18,800 |
||||||||||
Dorman Products, Inc. |
||||||||||||
6.250% due 06/15/2034 |
200 |
203 |
||||||||||
Ecopetrol SA |
||||||||||||
7.750% due 02/01/2032 (n) |
38,400 |
40,233 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
ELK Grove Village Property LLC |
||||||||||||
7.500% due 06/15/2031 (n) |
$ |
1,500 |
$ |
1,511 |
||||||||
Flora Food Management BV |
||||||||||||
6.875% due 07/02/2029 (n) |
EUR |
2,800 |
3,130 |
|||||||||
7.500% due 10/31/2030 |
1,800 |
2,052 |
||||||||||
FMC Corp. |
||||||||||||
8.000% due 06/01/2031 (n) |
$ |
400 |
417 |
|||||||||
Ford Motor Co. |
||||||||||||
7.700% due 05/15/2097 (n) |
16,931 |
17,795 |
||||||||||
Gaia Purchaser, Inc. |
||||||||||||
7.625% due 07/15/2033 (b) |
500 |
506 |
||||||||||
Greene King Finance PLC |
||||||||||||
5.666% (BP0003M + 1.800%) due 12/15/2034 ~ |
GBP |
350 |
434 |
|||||||||
GSG Bidco Ltd. |
||||||||||||
5.375% due 06/15/2036 |
EUR |
3,200 |
3,629 |
|||||||||
HCA, Inc. |
||||||||||||
7.500% due 11/15/2095 (n) |
$ |
4,516 |
4,885 |
|||||||||
Hybar LLC |
||||||||||||
7.375% due 07/01/2034 |
700 |
704 |
||||||||||
Incora Intermediate II LLC (0.500% PIK) |
||||||||||||
0.500% due 01/31/2030 «(c) |
23,761 |
23,761 |
||||||||||
Incora Top Holdco LLC |
||||||||||||
6.000% due 01/30/2033 «(m) |
16,275 |
25,651 |
||||||||||
Intralot Capital Luxembourg SA |
||||||||||||
6.731% due 10/15/2031 •(n) |
EUR |
13,100 |
15,126 |
|||||||||
6.750% due 10/15/2031 |
2,000 |
2,323 |
||||||||||
6.750% due 10/15/2031 (n) |
3,500 |
4,065 |
||||||||||
JetBlue Airways Corp./JetBlue Loyalty LP |
||||||||||||
9.875% due 09/20/2031 (n) |
$ |
4,729 |
4,290 |
|||||||||
Kronos International, Inc. |
||||||||||||
9.500% due 03/15/2029 (n) |
EUR |
8,500 |
9,583 |
|||||||||
LifePoint Health, Inc. |
||||||||||||
7.000% due 05/01/2034 (n) |
$ |
3,200 |
3,069 |
|||||||||
Motion Finco SARL |
||||||||||||
8.375% due 02/15/2032 (n) |
1,000 |
845 |
||||||||||
National Mentor Holdings, Inc. |
||||||||||||
10.500% due 12/15/2030 (n) |
1,100 |
1,160 |
||||||||||
Newfold Digital Holdings Group, Inc. |
||||||||||||
11.750% due 04/30/2029 |
3,924 |
2,240 |
||||||||||
Nissan Motor Co. Ltd. |
||||||||||||
4.810% due 09/17/2030 (n) |
12,400 |
11,555 |
||||||||||
7.500% due 07/17/2030 (n) |
1,600 |
1,650 |
||||||||||
Noble Finance II LLC |
||||||||||||
8.000% due 04/15/2030 (n) |
23,887 |
24,762 |
||||||||||
NPC Ukrenergo |
||||||||||||
6.875% due 11/09/2028 |
1,000 |
974 |
||||||||||
Ocado Group PLC |
||||||||||||
10.500% due 08/08/2029 (n) |
GBP |
8,500 |
11,705 |
|||||||||
11.000% due 06/15/2030 (n) |
12,450 |
17,441 |
||||||||||
Petroleos de Venezuela SA |
||||||||||||
6.000% due 11/15/2026 ^(d) |
$ |
13,500 |
5,096 |
|||||||||
9.750% due 05/17/2035 ^(d) |
5,000 |
2,236 |
||||||||||
QXO Building Products, Inc. |
||||||||||||
6.500% due 07/15/2031 (n) |
1,900 |
1,937 |
||||||||||
6.875% due 07/15/2034 |
2,200 |
2,260 |
||||||||||
Road Michigan Property Owner I LLC |
||||||||||||
7.500% due 03/30/2045 (n) |
61,051 |
60,883 |
||||||||||
Russian Railways Via RZD Capital PLC |
||||||||||||
7.487% due 03/25/2031 ^(d) |
GBP |
1,500 |
1,393 |
|||||||||
Spirit Airlines Pass-Through Trust |
||||||||||||
3.375% due 08/15/2031 |
$ |
58 |
53 |
|||||||||
4.100% due 10/01/2029 |
793 |
770 |
||||||||||
Thames Water Super Senior Issuer PLC |
||||||||||||
9.750% due 10/10/2027 |
GBP |
14 |
19 |
|||||||||
9.750% due 10/10/2027 |
3 |
4 |
||||||||||
Topaz Solar Farms LLC |
||||||||||||
4.875% due 09/30/2039 (n) |
$ |
3,098 |
2,750 |
|||||||||
5.750% due 09/30/2039 (n) |
15,369 |
15,144 |
||||||||||
Toucan FinCo Ltd./Toucan FinCo Can, Inc./Toucan FinCo U.S. LLC |
||||||||||||
8.250% due 05/15/2030 (n) |
EUR |
4,000 |
4,185 |
|||||||||
9.500% due 05/15/2030 (n) |
$ |
3,700 |
3,491 |
|||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
Tutor Perini Corp. |
||||||||||||
6.625% due 07/15/2033 (b) |
$ |
1,800 |
$ |
1,812 |
||||||||
U.S. Renal Care, Inc. |
||||||||||||
10.625% due 06/28/2028 |
3,751 |
3,488 |
||||||||||
Ubisoft Entertainment SA |
||||||||||||
0.878% due 11/24/2027 (n) |
EUR |
8,200 |
8,291 |
|||||||||
Valaris Ltd. |
||||||||||||
8.375% due 04/30/2030 (n) |
$ |
19,491 |
20,250 |
|||||||||
Vale SA |
||||||||||||
0.000% due 12/29/2049 ~(j) |
BRL |
250,000 |
19,437 |
|||||||||
Vedanta Resources Finance II PLC |
||||||||||||
7.000% due 07/13/2032 (b) |
$ |
5,100 |
5,075 |
|||||||||
7.375% due 07/13/2034 (b) |
5,100 |
5,055 |
||||||||||
7.750% due 07/13/2037 (b) |
5,100 |
5,069 |
||||||||||
Viridien |
||||||||||||
8.500% due 10/15/2030 (n) |
EUR |
1,899 |
2,299 |
|||||||||
10.000% due 10/15/2030 (n) |
$ |
8,741 |
9,290 |
|||||||||
VistaJet Malta Finance PLC/Vista Management Holding, Inc. |
||||||||||||
8.750% due 01/15/2032 (n) |
11,819 |
11,718 |
||||||||||
Vmed O2 U.K. Financing I PLC |
||||||||||||
6.750% due 01/15/2033 (n) |
14,200 |
12,036 |
||||||||||
VZ Secured Financing BV |
||||||||||||
7.500% due 01/15/2033 (n) |
3,625 |
3,473 |
||||||||||
Wayfair LLC |
||||||||||||
7.750% due 09/15/2030 (n) |
4,100 |
4,313 |
||||||||||
676,193 |
||||||||||||
UTILITIES 2.7% |
||||||||||||
Altice Holdings 1 SARL |
||||||||||||
0.000% due 12/31/2099 « |
EUR |
26 |
403 |
|||||||||
COX Asset Mexico SA de CV |
||||||||||||
7.125% due 01/08/2032 |
$ |
300 |
305 |
|||||||||
7.750% due 05/08/2036 (n) |
400 |
410 |
||||||||||
FORESEA Holding SA |
||||||||||||
7.500% due 06/15/2030 (n) |
562 |
555 |
||||||||||
7.500% due 06/15/2030 |
785 |
775 |
||||||||||
NGD Holdings BV |
||||||||||||
9.875% due 12/31/2029 |
734 |
719 |
||||||||||
Nova Securitisation SARL |
||||||||||||
5.750% due 02/03/2031 (n) |
6,500 |
6,273 |
||||||||||
6.500% due 02/03/2036 (n) |
4,400 |
4,141 |
||||||||||
OI SA |
||||||||||||
8.500% due 12/31/2028 ^(d) |
68,637 |
729 |
||||||||||
10.000% due 06/30/2027 ^(d) |
36,124 |
17,611 |
||||||||||
PBF Holding Co. LLC/PBF Finance Corp. |
||||||||||||
7.250% due 06/01/2034 (n) |
2,400 |
2,378 |
||||||||||
Peru LNG SRL |
||||||||||||
5.375% due 03/22/2030 (n) |
12,600 |
12,263 |
||||||||||
Qwest Corp. |
||||||||||||
7.375% due 05/01/2030 (n) |
6,900 |
6,798 |
||||||||||
SW Finance I PLC |
||||||||||||
1.625% due 03/30/2027 |
GBP |
5,080 |
6,563 |
|||||||||
Uniti Group LP/Uniti Group Finance 2019, Inc./CSL Capital LLC |
||||||||||||
6.500% due 02/15/2029 (n) |
$ |
800 |
794 |
|||||||||
Veon Midco BV |
||||||||||||
6.950% due 06/01/2031 (n) |
3,600 |
3,597 |
||||||||||
7.450% due 06/01/2033 (n) |
3,400 |
3,394 |
||||||||||
67,708 |
||||||||||||
Total Corporate Bonds & Notes (Cost $1,027,472) |
953,457 |
|||||||||||
CONVERTIBLE BONDS & NOTES 2.3% |
||||||||||||
BANKING & FINANCE 0.0% |
||||||||||||
Country Garden Holdings Co. Ltd. |
||||||||||||
0.000% due 12/31/2031 (g)(m) |
431 |
30 |
||||||||||
INDUSTRIALS 2.3% |
||||||||||||
ams-OSRAM AG |
||||||||||||
2.125% due 11/03/2027 (n) |
EUR |
37,100 |
41,649 |
|||||||||
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 33 |
Schedule of Investments |
PIMCO Corporate & Income Opportunity Fund |
(Cont.) |
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
DISH Network Corp. |
||||||||||||
3.375% due 08/15/2026 |
$ |
5,900 |
$ |
5,726 |
||||||||
Ubisoft Entertainment SA |
||||||||||||
2.375% due 11/15/2028 (n) |
EUR |
9,400 |
10,553 |
|||||||||
57,928 |
||||||||||||
Total Convertible Bonds & Notes (Cost $58,654) |
57,958 |
|||||||||||
MUNICIPAL BONDS & NOTES 0.8% |
||||||||||||
CALIFORNIA 0.1% |
||||||||||||
Golden State, California Tobacco Securitization Corp. Revenue Bonds, Series 2021 |
||||||||||||
3.850% due 06/01/2050 |
$ |
30 |
27 |
|||||||||
4.214% due 06/01/2050 |
2,400 |
1,695 |
||||||||||
1,722 |
||||||||||||
MICHIGAN 0.2% |
||||||||||||
Detroit, Michigan General Obligation Bonds, Series 2014 |
||||||||||||
4.000% due 04/01/2044 |
6,389 |
5,228 |
||||||||||
PENNSYLVANIA 0.2% |
||||||||||||
Berks County, Pennsylvania Municipal Authority Revenue Notes, Series 2024 |
||||||||||||
8.000% due 06/30/2034 |
4,450 |
4,539 |
||||||||||
WEST VIRGINIA 0.3% |
||||||||||||
Tobacco Settlement Finance Authority, West Virginia Revenue Bonds, Series 2007 |
||||||||||||
0.000% due 06/01/2047 (g) |
78,700 |
7,886 |
||||||||||
Total Municipal Bonds & Notes (Cost $23,500) |
19,375 |
|||||||||||
U.S. GOVERNMENT AGENCIES 5.5% |
||||||||||||
Federal Home Loan Mortgage Corp. Military Housing Bonds Resecuritization Trust Certificates |
||||||||||||
5.992% due 11/25/2055 «~(n) |
12,823 |
9,489 |
||||||||||
Federal Home Loan Mortgage Corp. REMICS |
||||||||||||
0.289% due 03/15/2043 • |
69 |
44 |
||||||||||
0.453% due 09/15/2042 •(n) |
711 |
396 |
||||||||||
0.684% due 07/15/2039 •(n) |
2,207 |
1,809 |
||||||||||
1.358% due 03/15/2044 •(n) |
1,822 |
1,347 |
||||||||||
2.115% due 02/15/2036 •(n) |
4,034 |
3,827 |
||||||||||
3.000% due 12/25/2050 (a)(n) |
5,850 |
1,045 |
||||||||||
3.393% due 02/15/2034 •(a) |
489 |
46 |
||||||||||
3.500% due 10/15/2035 (a) |
546 |
44 |
||||||||||
Federal Home Loan Mortgage Corp. Seasoned Credit Risk Transfer Trust |
||||||||||||
2.237% due 08/25/2058 ~ |
6,662 |
2,535 |
||||||||||
2.239% due 08/25/2057 ~ |
9,895 |
2,965 |
||||||||||
3.506% due 10/25/2058 ~ |
3,755 |
1,684 |
||||||||||
4.564% due 02/25/2059 ~ |
15,796 |
6,665 |
||||||||||
10.931% due 09/25/2060 ~ |
11,020 |
8,336 |
||||||||||
Federal Home Loan Mortgage Corp. STACR REMICS Trust |
||||||||||||
10.728% due 01/25/2042 • |
1,800 |
1,856 |
||||||||||
11.128% due 10/25/2041 • |
22,025 |
22,438 |
||||||||||
11.428% due 11/25/2041 • |
24,363 |
24,971 |
||||||||||
12.128% due 02/25/2042 • |
5,899 |
6,164 |
||||||||||
Federal National Mortgage Association Connecticut Avenue Securities Trust |
||||||||||||
9.128% due 12/25/2041 • |
10,600 |
10,803 |
||||||||||
9.628% due 10/25/2041 - 12/25/2041 • |
21,610 |
21,976 |
||||||||||
9.828% due 11/25/2041 • |
3,544 |
3,610 |
||||||||||
10.628% due 04/25/2042 • |
2,600 |
2,715 |
||||||||||
13.128% due 03/25/2042 • |
500 |
528 |
||||||||||
13.478% due 03/25/2042 • |
600 |
636 |
||||||||||
Federal National Mortgage Association Interest STRIPS |
||||||||||||
5.000% due 02/25/2036 ~(a) |
123 |
15 |
||||||||||
Federal National Mortgage Association REMICS |
||||||||||||
3.000% due 01/25/2042 (a) |
32 |
0 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
3.500% due 02/25/2033 (a) |
$ |
439 |
$ |
24 |
||||||||
4.500% due 07/25/2050 (a)(n) |
3,130 |
721 |
||||||||||
Government National Mortgage Association REMICS |
||||||||||||
2.996% due 01/20/2042 •(a) |
541 |
52 |
||||||||||
3.500% due 09/16/2041 - 06/20/2042 (a) |
248 |
23 |
||||||||||
Total U.S. Government Agencies (Cost $141,428) |
136,764 |
|||||||||||
U.S. TREASURY OBLIGATIONS 0.1% |
||||||||||||
U.S. Treasury Bonds |
||||||||||||
4.875% due 08/15/2045 (p)(r) |
1,274 |
1,264 |
||||||||||
U.S. Treasury Notes |
||||||||||||
4.125% due 02/15/2036 |
10 |
10 |
||||||||||
Total U.S. Treasury Obligations (Cost $1,331) |
1,274 |
|||||||||||
NON-AGENCY MORTGAGE-BACKED SECURITIES 7.0% |
||||||||||||
Adjustable Rate Mortgage Trust |
||||||||||||
4.103% due 05/25/2036 • |
1,296 |
496 |
||||||||||
4.913% due 01/25/2035 • |
1,282 |
1,241 |
||||||||||
Atrium Hotel Portfolio Trust |
||||||||||||
5.423% due 12/15/2036 •(n) |
12,835 |
12,679 |
||||||||||
Banc of America Funding Trust |
||||||||||||
4.003% due 06/26/2036 • |
3,391 |
2,897 |
||||||||||
5.500% due 01/25/2036 |
13 |
13 |
||||||||||
6.000% due 07/25/2037 |
266 |
229 |
||||||||||
BCAP LLC Trust |
||||||||||||
3.618% due 03/27/2036 ~ |
1,856 |
1,253 |
||||||||||
4.440% due 03/26/2037 þ |
1,086 |
1,898 |
||||||||||
4.561% due 02/26/2036 ~ |
1,016 |
944 |
||||||||||
7.000% due 12/26/2036 ~ |
1,580 |
871 |
||||||||||
BCP Trust |
||||||||||||
4.937% due 06/15/2038 • |
450 |
363 |
||||||||||
Bear Stearns ALT-A Trust |
||||||||||||
4.050% due 08/25/2036 ~ |
1,991 |
877 |
||||||||||
4.394% due 11/25/2036 ~ |
425 |
211 |
||||||||||
4.419% due 08/25/2046 ~ |
2,182 |
1,460 |
||||||||||
4.443% due 09/25/2035 ~ |
347 |
140 |
||||||||||
5.090% due 11/25/2034 ~ |
128 |
124 |
||||||||||
Benchmark Mortgage Trust |
||||||||||||
2.852% due 02/15/2054 ~(n) |
8,388 |
5,007 |
||||||||||
BFLD Trust |
||||||||||||
6.690% due 10/15/2035 • |
930 |
9 |
||||||||||
7.440% due 10/15/2035 • |
4,700 |
35 |
||||||||||
7.940% due 10/15/2035 • |
4,400 |
16 |
||||||||||
CD Mortgage Trust |
||||||||||||
5.688% due 10/15/2048 |
398 |
374 |
||||||||||
Chase Mortgage Finance Trust |
||||||||||||
4.646% due 12/25/2035 ~ |
5 |
5 |
||||||||||
6.000% due 02/25/2037 |
1,190 |
427 |
||||||||||
6.000% due 03/25/2037 |
267 |
132 |
||||||||||
6.000% due 07/25/2037 |
1,022 |
422 |
||||||||||
CHL Mortgage Pass-Through Trust |
||||||||||||
5.500% due 07/25/2037 |
404 |
156 |
||||||||||
6.000% due 04/25/2036 |
175 |
77 |
||||||||||
CIM Trust |
||||||||||||
4.750% due 12/25/2065 þ |
1,887 |
1,846 |
||||||||||
Citigroup Mortgage Loan Trust, Inc. |
||||||||||||
4.303% due 04/25/2037 ~ |
877 |
778 |
||||||||||
4.449% due 03/25/2037 ~ |
187 |
162 |
||||||||||
4.768% due 11/25/2035 ~ |
9,319 |
4,328 |
||||||||||
6.000% due 11/25/2036 ~ |
8,094 |
4,234 |
||||||||||
CitiMortgage Alternative Loan Trust |
||||||||||||
5.750% due 04/25/2037 |
875 |
800 |
||||||||||
CLNY Trust |
||||||||||||
5.655% due 11/15/2038 •(n) |
1,125 |
1,089 |
||||||||||
6.004% due 11/15/2038 •(n) |
4,100 |
3,930 |
||||||||||
6.700% due 11/15/2038 •(n) |
3,150 |
2,966 |
||||||||||
Countrywide Alternative Loan Trust |
||||||||||||
1.487% due 04/25/2037 •(a) |
13,316 |
1,004 |
||||||||||
4.173% due 06/25/2037 ~ |
427 |
425 |
||||||||||
4.174% due 03/20/2046 • |
1,911 |
1,823 |
||||||||||
4.303% due 08/25/2035 • |
1,174 |
599 |
||||||||||
5.500% due 03/25/2035 |
376 |
145 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
5.500% due 09/25/2035 |
$ |
2,408 |
$ |
1,565 |
||||||||
5.750% due 01/25/2035 |
133 |
132 |
||||||||||
5.750% due 02/25/2035 |
290 |
187 |
||||||||||
6.000% due 02/25/2035 |
389 |
316 |
||||||||||
6.000% due 04/25/2036 |
1,111 |
471 |
||||||||||
6.000% due 05/25/2036 |
5,937 |
2,732 |
||||||||||
6.000% due 02/25/2037 |
1,992 |
961 |
||||||||||
6.000% due 04/25/2037 |
4,006 |
1,667 |
||||||||||
6.000% due 08/25/2037 • |
6,218 |
2,987 |
||||||||||
6.250% due 10/25/2036 |
1,358 |
758 |
||||||||||
6.250% due 12/25/2036 • |
2,349 |
907 |
||||||||||
6.500% due 08/25/2036 |
655 |
183 |
||||||||||
6.500% due 09/25/2036 |
299 |
134 |
||||||||||
7.836% due 02/25/2036 • |
677 |
524 |
||||||||||
Countrywide Alternative Loan Trust Resecuritization |
||||||||||||
6.000% due 08/25/2037 ~ |
1,301 |
631 |
||||||||||
CSMC Mortgage-Backed Trust |
||||||||||||
5.750% due 04/25/2036 |
829 |
370 |
||||||||||
CSMC Trust |
||||||||||||
5.140% due 07/15/2038 •(n) |
1,000 |
835 |
||||||||||
8.044% due 07/15/2032 •(n) |
2,227 |
2,186 |
||||||||||
DBGS Mortgage Trust |
||||||||||||
3.843% due 04/10/2037 (n) |
1,000 |
939 |
||||||||||
5.285% due 10/15/2039 •(n) |
1,000 |
1,001 |
||||||||||
Eurosail-U.K. PLC |
||||||||||||
5.216% due 06/13/2045 • |
GBP |
4,487 |
5,126 |
|||||||||
7.866% due 06/13/2045 • |
1,394 |
1,550 |
||||||||||
First Horizon Alternative Mortgage Securities Trust |
||||||||||||
6.250% due 11/25/2036 |
$ |
942 |
228 |
|||||||||
GS Mortgage Securities Corp. Trust |
||||||||||||
4.872% due 07/15/2035 •(n) |
1,298 |
850 |
||||||||||
GSR Mortgage Loan Trust |
||||||||||||
4.110% due 03/25/2037 ~ |
1,050 |
459 |
||||||||||
4.440% due 11/25/2035 ~ |
316 |
269 |
||||||||||
Hilton USA Trust |
||||||||||||
2.828% due 11/05/2035 (n) |
2,100 |
1,751 |
||||||||||
HomeBanc Mortgage Trust |
||||||||||||
4.963% due 03/25/2035 • |
47 |
31 |
||||||||||
IndyMac IMSC Mortgage Loan Trust |
||||||||||||
6.500% due 07/25/2037 |
6,532 |
1,897 |
||||||||||
JP Morgan Alternative Loan Trust |
||||||||||||
3.933% due 03/25/2037 ~ |
3,364 |
2,908 |
||||||||||
JP Morgan Chase Commercial Mortgage Securities Trust |
||||||||||||
4.472% due 04/15/2037 •(n) |
939 |
932 |
||||||||||
4.982% due 04/15/2037 •(n) |
5,636 |
5,554 |
||||||||||
5.280% due 06/15/2038 •(n) |
1,100 |
994 |
||||||||||
6.923% due 02/15/2035 •(n) |
4,772 |
4,516 |
||||||||||
7.235% due 10/05/2040 (n) |
1,600 |
1,648 |
||||||||||
JP Morgan Mortgage Trust |
||||||||||||
4.319% due 06/25/2036 ~ |
233 |
146 |
||||||||||
5.234% due 01/25/2037 ~ |
302 |
254 |
||||||||||
5.293% due 02/25/2036 ~ |
603 |
377 |
||||||||||
5.496% due 10/25/2035 ~ |
5 |
5 |
||||||||||
Lehman Mortgage Trust |
||||||||||||
6.000% due 07/25/2037 |
2 |
2 |
||||||||||
Lehman XS Trust |
||||||||||||
4.203% due 06/25/2047 • |
999 |
967 |
||||||||||
MASTR Alternative Loan Trust |
||||||||||||
6.750% due 07/25/2036 |
2,815 |
1,021 |
||||||||||
Merrill Lynch Mortgage Investors Trust |
||||||||||||
4.244% due 03/25/2036 ~ |
1,449 |
641 |
||||||||||
Morgan Stanley Capital I Trust |
||||||||||||
5.540% due 12/15/2036 • |
8,125 |
171 |
||||||||||
New Orleans Hotel Trust |
||||||||||||
5.262% due 04/15/2032 •(n) |
2,200 |
2,177 |
||||||||||
NYO Commercial Mortgage Trust |
||||||||||||
4.835% due 11/15/2038 •(n) |
1,000 |
1,000 |
||||||||||
6.285% due 11/15/2038 •(n) |
2,500 |
2,492 |
||||||||||
Pretium Mortgage Credit Partners LLC |
||||||||||||
5.124% due 10/25/2055 þ |
12,940 |
12,803 |
||||||||||
PRPM LLC |
||||||||||||
5.385% due 10/25/2030 þ(n) |
4,509 |
4,485 |
||||||||||
5.503% due 08/25/2030 þ(n) |
3,294 |
3,283 |
||||||||||
6.255% due 05/25/2030 þ |
716 |
716 |
||||||||||
34 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
RALI Trust |
||||||||||||
4.143% due 08/25/2036 • |
$ |
200 |
$ |
208 |
||||||||
4.223% due 05/25/2037 • |
133 |
119 |
||||||||||
6.000% due 08/25/2036 |
208 |
182 |
||||||||||
6.000% due 05/25/2037 |
790 |
661 |
||||||||||
RBSSP Resecuritization Trust |
||||||||||||
3.983% due 10/27/2036 • |
3,609 |
1,163 |
||||||||||
4.009% due 08/27/2037 • |
8,000 |
3,871 |
||||||||||
Residential Asset Securitization Trust |
||||||||||||
5.750% due 02/25/2036 |
296 |
97 |
||||||||||
6.000% due 02/25/2037 |
1,475 |
593 |
||||||||||
6.250% due 09/25/2037 |
4,654 |
1,542 |
||||||||||
RFMSI Trust |
||||||||||||
4.847% due 02/25/2037 ~ |
1,218 |
713 |
||||||||||
SG Commercial Mortgage Securities Trust |
||||||||||||
2.937% due 03/15/2037 (n) |
3,400 |
3,258 |
||||||||||
STARM Mortgage Loan Trust |
||||||||||||
5.346% due 04/25/2037 ~ |
99 |
40 |
||||||||||
5.644% due 02/25/2037 ~ |
114 |
98 |
||||||||||
6.114% due 02/25/2037 ~ |
715 |
666 |
||||||||||
Structured Adjustable Rate Mortgage Loan Trust |
||||||||||||
4.199% due 01/25/2036 ~ |
3,295 |
1,724 |
||||||||||
4.486% due 07/25/2035 ~ |
548 |
484 |
||||||||||
4.997% due 11/25/2036 ~ |
1,490 |
1,134 |
||||||||||
Structured Asset Mortgage Investments II Trust |
||||||||||||
3.883% due 08/25/2036 • |
57 |
51 |
||||||||||
VASA Trust |
||||||||||||
4.640% due 07/15/2039 •(n) |
1,000 |
982 |
||||||||||
Wachovia Mortgage Loan Trust LLC |
||||||||||||
1.559% due 08/25/2036 • |
2,038 |
648 |
||||||||||
WaMu Mortgage Pass-Through Certificates Trust |
||||||||||||
3.236% due 10/25/2036 ~ |
417 |
370 |
||||||||||
3.788% due 07/25/2037 ~ |
305 |
277 |
||||||||||
3.976% due 02/25/2037 ~ |
690 |
626 |
||||||||||
3.994% due 02/25/2037 ~ |
391 |
342 |
||||||||||
4.590% due 07/25/2037 ~ |
664 |
621 |
||||||||||
Washington Mutual Mortgage Pass-Through Certificates WMALT Trust |
||||||||||||
4.584% due 05/25/2047 • |
7 |
21 |
||||||||||
6.000% due 10/25/2035 |
710 |
569 |
||||||||||
6.000% due 03/25/2036 |
779 |
772 |
||||||||||
6.000% due 02/25/2037 |
2,097 |
1,804 |
||||||||||
Wells Fargo Commercial Mortgage Trust |
||||||||||||
5.761% due 09/15/2040 ~(n) |
500 |
494 |
||||||||||
Worldwide Plaza Trust |
||||||||||||
3.526% due 11/10/2036 (n) |
5,815 |
4,795 |
||||||||||
WSTN Trust |
||||||||||||
7.958% due 07/05/2037 ~(n) |
3,700 |
3,735 |
||||||||||
8.748% due 07/05/2037 ~(n) |
3,700 |
3,705 |
||||||||||
10.174% due 07/05/2037 ~(n) |
3,000 |
3,010 |
||||||||||
Total Non-Agency Mortgage-Backed Securities (Cost $206,886) |
174,599 |
|||||||||||
ASSET-BACKED SECURITIES 6.3% |
||||||||||||
AUTOMOBILE ABS OTHER 0.2% |
||||||||||||
Ally Bank Auto Credit-Linked Notes |
||||||||||||
6.066% due 06/15/2033 |
3,054 |
3,052 |
||||||||||
6.942% due 06/15/2033 |
812 |
812 |
||||||||||
10.219% due 06/15/2033 |
2,307 |
2,308 |
||||||||||
6,172 |
||||||||||||
CMBS OTHER 0.0% |
||||||||||||
LNR CDO III Ltd. |
||||||||||||
4.047% due 02/28/2043 • |
3,114 |
0 |
||||||||||
N-Star REL CDO VIII Ltd. |
||||||||||||
4.181% due 02/01/2041 • |
220 |
0 |
||||||||||
0 |
||||||||||||
HOME EQUITY OTHER 3.7% |
||||||||||||
ABFC Trust |
||||||||||||
4.063% due 06/25/2035 þ |
14,191 |
13,172 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
4.708% due 07/25/2034 • |
$ |
38 |
$ |
38 |
||||||||
4.738% due 06/25/2035 • |
894 |
861 |
||||||||||
4.813% due 03/25/2035 • |
67 |
60 |
||||||||||
4.933% due 03/25/2035 • |
122 |
97 |
||||||||||
ACE Securities Corp. Home Equity Loan Trust |
||||||||||||
4.753% due 05/25/2035 • |
300 |
248 |
||||||||||
Aegis Asset-Backed Securities Trust |
||||||||||||
4.483% due 08/25/2035 • |
8 |
8 |
||||||||||
4.723% due 08/25/2035 • |
700 |
131 |
||||||||||
4.738% due 06/25/2035 • |
900 |
298 |
||||||||||
Ameriquest Mortgage Securities, Inc. Asset-Backed Pass-Through Certificates |
||||||||||||
4.678% due 09/25/2035 • |
273 |
274 |
||||||||||
4.708% due 11/25/2035 • |
400 |
354 |
||||||||||
4.708% due 01/25/2036 • |
1,100 |
1,038 |
||||||||||
4.738% due 05/25/2035 • |
204 |
200 |
||||||||||
4.783% due 01/25/2036 • |
1,100 |
983 |
||||||||||
5.113% due 03/25/2033 • |
21 |
20 |
||||||||||
5.683% due 09/25/2034 • |
2,723 |
2,157 |
||||||||||
Argent Securities, Inc. Asset-Backed Pass-Through Certificates |
||||||||||||
4.453% due 01/25/2036 • |
333 |
364 |
||||||||||
Asset-Backed Securities Corp. Home Equity Loan Trust |
||||||||||||
4.663% due 11/25/2035 • |
700 |
683 |
||||||||||
4.768% due 04/25/2035 • |
5 |
6 |
||||||||||
4.783% due 05/25/2035 • |
153 |
152 |
||||||||||
4.843% due 04/25/2035 • |
300 |
277 |
||||||||||
Bear Stearns Asset-Backed Securities I Trust |
||||||||||||
4.783% due 04/25/2035 • |
333 |
331 |
||||||||||
4.783% due 10/25/2035 • |
117 |
117 |
||||||||||
4.843% due 12/25/2035 • |
799 |
810 |
||||||||||
Citigroup Mortgage Loan Trust, Inc. |
||||||||||||
4.738% due 10/25/2035 • |
677 |
500 |
||||||||||
Countrywide Asset-Backed Certificates |
||||||||||||
4.753% due 05/25/2035 • |
27 |
27 |
||||||||||
4.858% due 05/25/2035 • |
136 |
134 |
||||||||||
Countrywide Asset-Backed Certificates Trust |
||||||||||||
4.108% due 05/25/2037 • |
7,926 |
6,727 |
||||||||||
4.552% due 05/25/2036 • |
252 |
209 |
||||||||||
4.873% due 08/25/2035 • |
84 |
83 |
||||||||||
5.236% due 07/25/2035 ~ |
7,025 |
5,538 |
||||||||||
Encore Credit Receivables Trust |
||||||||||||
4.498% due 07/25/2035 • |
79 |
75 |
||||||||||
4.813% due 07/25/2035 • |
233 |
209 |
||||||||||
FBR Securitization Trust |
||||||||||||
4.693% due 09/25/2035 • |
1,900 |
1,732 |
||||||||||
4.738% due 11/25/2035 • |
1,000 |
625 |
||||||||||
Fremont Home Loan Trust |
||||||||||||
4.063% due 01/25/2037 • |
4,697 |
2,131 |
||||||||||
4.243% due 02/25/2036 • |
12,771 |
9,443 |
||||||||||
4.438% due 01/25/2036 • |
1,400 |
1,206 |
||||||||||
4.723% due 04/25/2035 • |
1,300 |
1,156 |
||||||||||
4.828% due 06/25/2035 •(n) |
106 |
105 |
||||||||||
GSAA Home Equity Trust |
||||||||||||
4.163% due 03/25/2037 • |
953 |
253 |
||||||||||
GSAMP Trust |
||||||||||||
4.043% due 12/25/2036 • |
1,140 |
606 |
||||||||||
4.163% due 01/25/2047 • |
243 |
121 |
||||||||||
Home Equity Mortgage Loan Asset-Backed Trust |
||||||||||||
4.083% due 07/25/2037 • |
2,175 |
1,200 |
||||||||||
4.468% due 03/25/2036 • |
302 |
243 |
||||||||||
JP Morgan Mortgage Acquisition Trust |
||||||||||||
6.330% due 07/25/2036 þ |
90 |
22 |
||||||||||
Long Beach Mortgage Loan Trust |
||||||||||||
4.678% due 08/25/2035 • |
1,000 |
932 |
||||||||||
4.888% due 04/25/2035 • |
1,878 |
1,821 |
||||||||||
8.263% due 10/25/2034 • |
3,608 |
3,253 |
||||||||||
MASTR Asset-Backed Securities Trust |
||||||||||||
4.663% due 10/25/2035 • |
400 |
361 |
||||||||||
4.738% due 05/25/2035 • |
8 |
9 |
||||||||||
4.768% due 03/25/2035 • |
367 |
371 |
||||||||||
4.783% due 03/25/2035 • |
208 |
169 |
||||||||||
4.813% due 05/25/2035 • |
400 |
399 |
||||||||||
4.843% due 03/25/2035 • |
479 |
474 |
||||||||||
Merrill Lynch Mortgage Investors Trust |
||||||||||||
3.817% due 03/25/2037 þ |
5,641 |
1,019 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
4.083% due 04/25/2037 • |
$ |
1,253 |
$ |
502 |
||||||||
4.708% due 02/25/2036 • |
138 |
138 |
||||||||||
4.798% due 02/25/2036 • |
80 |
79 |
||||||||||
Morgan Stanley ABS Capital I, Inc. Trust |
||||||||||||
3.913% due 10/25/2036 • |
4,997 |
2,591 |
||||||||||
4.798% due 03/25/2035 • |
253 |
231 |
||||||||||
4.858% due 01/25/2035 • |
261 |
233 |
||||||||||
Morgan Stanley Mortgage Loan Trust |
||||||||||||
6.250% due 02/25/2037 ~ |
1,928 |
1,087 |
||||||||||
New Century Home Equity Loan Trust |
||||||||||||
4.408% due 12/25/2035 • |
271 |
262 |
||||||||||
4.438% due 12/25/2035 • |
573 |
520 |
||||||||||
4.543% due 03/25/2035 • |
148 |
148 |
||||||||||
4.708% due 06/25/2035 • |
106 |
115 |
||||||||||
4.738% due 06/25/2035 • |
291 |
288 |
||||||||||
4.783% due 06/25/2035 • |
366 |
384 |
||||||||||
4.888% due 03/25/2035 • |
222 |
220 |
||||||||||
Nomura Home Equity Loan, Inc. Home Equity Loan Trust |
||||||||||||
4.678% due 05/25/2035 • |
525 |
424 |
||||||||||
Park Place Securities, Inc. Asset-Backed Pass-Through Certificates |
||||||||||||
4.738% due 07/25/2035 • |
400 |
352 |
||||||||||
People’s Choice Home Loan Securities Trust |
||||||||||||
4.738% due 05/25/2035 • |
300 |
221 |
||||||||||
Renaissance Home Equity Loan Trust |
||||||||||||
5.612% due 04/25/2037 þ |
11,496 |
2,735 |
||||||||||
7.238% due 09/25/2037 þ |
7,382 |
2,765 |
||||||||||
Residential Asset Securities Corporation Trust |
||||||||||||
4.708% due 12/25/2035 • |
538 |
443 |
||||||||||
Securitized Asset-Backed Receivables LLC Trust |
||||||||||||
4.183% due 03/25/2036 • |
12,206 |
11,849 |
||||||||||
Soundview Home Loan Trust |
||||||||||||
4.738% due 11/25/2035 • |
348 |
342 |
||||||||||
Structured Asset Investment Loan Trust |
||||||||||||
4.738% due 06/25/2035 • |
3,778 |
3,451 |
||||||||||
93,212 |
||||||||||||
WHOLE LOAN COLLATERAL 1.4% |
||||||||||||
Bear Stearns Asset-Backed Securities I Trust |
||||||||||||
4.163% due 04/25/2037 • |
5,847 |
5,100 |
||||||||||
First Franklin Mortgage Loan Trust |
||||||||||||
4.083% due 10/25/2036 • |
2,402 |
1,547 |
||||||||||
4.813% due 03/25/2035 • |
661 |
646 |
||||||||||
Opteum Mortgage Acceptance Corp. Asset-Backed Pass-Through Certificates |
||||||||||||
4.813% due 04/25/2035 • |
64 |
64 |
||||||||||
Pretium Mortgage Credit Partners LLC |
||||||||||||
5.074% due 02/25/2056 þ |
2,322 |
2,306 |
||||||||||
5.184% due 11/25/2055 þ |
2,996 |
2,967 |
||||||||||
5.193% due 10/25/2055 þ(n) |
4,900 |
4,907 |
||||||||||
5.265% due 12/25/2055 þ |
943 |
934 |
||||||||||
5.342% due 12/25/2055 þ(n) |
5,839 |
5,799 |
||||||||||
5.391% due 08/25/2055 þ(n) |
3,035 |
3,039 |
||||||||||
5.510% due 04/25/2056 þ |
3,736 |
3,729 |
||||||||||
6.244% due 05/25/2055 þ |
1,131 |
1,133 |
||||||||||
RCO X Mortgage LLC |
||||||||||||
5.418% due 10/25/2030 þ |
1,584 |
1,576 |
||||||||||
Securitized Asset-Backed Receivables LLC Trust |
||||||||||||
4.738% due 12/25/2034 • |
119 |
107 |
||||||||||
VCAT LLC |
||||||||||||
5.101% due 01/25/2056 þ |
874 |
868 |
||||||||||
34,722 |
||||||||||||
OTHER ABS 1.0% |
||||||||||||
Adagio VI CLO DAC |
||||||||||||
0.000% due 04/30/2031 ~ |
EUR |
1,343 |
0 |
|||||||||
Apidos CLO XXVIII |
||||||||||||
0.000% due 10/20/2038 ~ |
$ |
10,135 |
2,634 |
|||||||||
Belle Haven ABS CDO Ltd. |
||||||||||||
7.000% due 07/05/2046 • |
324,260 |
676 |
||||||||||
Carlyle Global Market Strategies CLO Ltd. |
||||||||||||
0.000% due 04/17/2031 ~ |
6,000 |
64 |
||||||||||
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 35 |
Schedule of Investments |
PIMCO Corporate & Income Opportunity Fund |
(Cont.) |
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
CIFC Funding Ltd. |
||||||||||||
0.000% due 04/24/2030 ~ |
$ |
4,100 |
$ |
405 |
||||||||
0.000% due 03/31/2038 ~ |
2,441 |
1,103 |
||||||||||
Cork Street CLO DAC |
||||||||||||
0.000% due 11/27/2028 «~ |
EUR |
700 |
47 |
|||||||||
Crown City CLO II |
||||||||||||
0.000% due 04/20/2035 ~ |
$ |
1,600 |
383 |
|||||||||
Dryden 58 CLO Ltd. |
||||||||||||
0.000% due 07/17/2031 ~ |
14,311 |
109 |
||||||||||
Glacier Funding CDO III Ltd. |
||||||||||||
7.020% due 08/04/2035 • |
7,164 |
422 |
||||||||||
GreenSky Home Improvement Issuer Trust |
||||||||||||
5.870% due 06/25/2059 |
604 |
611 |
||||||||||
6.360% due 06/25/2059 |
336 |
341 |
||||||||||
Man GLG U.S. CLO Ltd. |
||||||||||||
0.000% due 07/15/2034 ~ |
1,100 |
383 |
||||||||||
Marble Point CLO XXIII Ltd. |
||||||||||||
0.000% due 01/22/2052 ~ |
5,200 |
1,255 |
||||||||||
Marlette Funding Trust |
||||||||||||
0.000% due 09/17/2029 «(g) |
15 |
0 |
||||||||||
Pagaya AI Debt Selection Trust |
||||||||||||
3.270% due 05/15/2029 |
402 |
399 |
||||||||||
SLM Student Loan EDC Repackaging Trust |
||||||||||||
0.000% due 10/28/2029 «(g) |
8 |
2,333 |
||||||||||
SLM Student Loan Trust |
||||||||||||
0.000% due 01/25/2042 «(g) |
7 |
1,279 |
||||||||||
SMB Private Education Loan Trust |
||||||||||||
0.000% due 09/18/2046 «(g) |
3 |
687 |
||||||||||
0.000% due 10/15/2048 «(g) |
3 |
773 |
||||||||||
South Coast Funding V Ltd. |
||||||||||||
4.965% due 08/06/2039 • |
1,077 |
315 |
||||||||||
Taberna Preferred Funding V Ltd. |
||||||||||||
4.300% due 08/05/2036 • |
4,923 |
4,652 |
||||||||||
Taberna Preferred Funding VI Ltd. |
||||||||||||
4.280% due 12/05/2036 • |
6,360 |
5,914 |
||||||||||
24,785 |
||||||||||||
Total Asset-Backed Securities (Cost $234,580) |
158,891 |
|||||||||||
SOVEREIGN ISSUES 12.0% |
||||||||||||
Angola Government International Bonds |
||||||||||||
8.000% due 11/26/2029 |
3,403 |
3,465 |
||||||||||
9.375% due 03/31/2033 |
6,700 |
6,864 |
||||||||||
Argentina Bonar Bonds |
||||||||||||
0.750% due 07/09/2030 þ |
9,499 |
5,902 |
||||||||||
Argentina Republic Government International Bonds |
||||||||||||
1.000% due 07/09/2029 |
946 |
863 |
||||||||||
3.500% due 07/09/2041 þ(n) |
17,491 |
13,118 |
||||||||||
4.125% due 07/09/2046 þ |
107 |
82 |
||||||||||
5.000% due 01/09/2038 þ(n) |
22,691 |
18,992 |
||||||||||
Avenir Issuer IV Ireland DAC |
||||||||||||
6.000% due 10/25/2027 |
1,680 |
1,662 |
||||||||||
Brazil Government International Bonds |
||||||||||||
4.875% due 04/23/2033 (n) |
EUR |
1,900 |
2,181 |
|||||||||
Colombia TES |
||||||||||||
1.000% due 08/22/2029 |
COP |
1,065,200 |
303 |
|||||||||
1.000% due 03/26/2031 |
651,300 |
157 |
||||||||||
1.000% due 11/28/2040 |
500 |
0 |
||||||||||
6.500% due 01/22/2031 (i) |
539,154 |
156 |
||||||||||
7.000% due 06/30/2032 |
637,200 |
148 |
||||||||||
7.250% due 10/18/2034 |
769,700 |
171 |
||||||||||
9.250% due 05/28/2042 |
1,530,300 |
365 |
||||||||||
11.000% due 08/22/2029 |
8,525,200 |
2,421 |
||||||||||
11.500% due 07/25/2046 |
2,481,800 |
704 |
||||||||||
11.750% due 01/24/2035 |
236,814,100 |
68,052 |
||||||||||
12.000% due 03/13/2058 |
11,113,000 |
3,214 |
||||||||||
12.500% due 02/27/2030 |
94,906,900 |
27,944 |
||||||||||
12.750% due 11/28/2040 |
7,726,900 |
2,359 |
||||||||||
13.250% due 02/09/2033 |
3,975,100 |
1,227 |
||||||||||
Development Bank of Kazakhstan JSC |
||||||||||||
18.400% due 10/16/2028 |
KZT |
869,100 |
1,893 |
|||||||||
Dominican Republic International Bonds |
||||||||||||
10.500% due 03/15/2037 (n) |
DOP |
953,800 |
16,995 |
|||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
10.750% due 06/01/2036 (n) |
DOP |
86,250 |
$ |
1,559 |
||||||||
10.750% due 06/01/2036 |
51,400 |
929 |
||||||||||
11.250% due 09/15/2035 |
45,950 |
851 |
||||||||||
DRC International Bonds |
||||||||||||
8.750% due 04/16/2032 |
$ |
3,400 |
3,524 |
|||||||||
9.500% due 04/16/2037 |
300 |
315 |
||||||||||
Egypt Government Bonds |
||||||||||||
19.698% due 10/14/2030 |
EGP |
2,172,700 |
42,153 |
|||||||||
Ghana Government International Bonds |
||||||||||||
0.000% due 07/03/2026 (g) |
$ |
29 |
29 |
|||||||||
0.000% due 01/03/2030 (g)(n) |
120 |
108 |
||||||||||
5.000% due 07/03/2029 þ |
762 |
754 |
||||||||||
Pakistan Government International Bonds |
||||||||||||
6.975% due 04/24/2029 |
3,700 |
3,712 |
||||||||||
Peru Government International Bonds |
||||||||||||
6.900% due 08/12/2037 |
PEN |
4,600 |
1,379 |
|||||||||
6.950% due 08/12/2031 |
6,881 |
2,290 |
||||||||||
Qatar Government International Bonds |
||||||||||||
4.800% due 04/08/2033 (n) |
$ |
4,600 |
4,625 |
|||||||||
Republic of Kenya Government International Bonds |
||||||||||||
7.875% due 02/26/2034 (n) |
2,700 |
2,689 |
||||||||||
Romania Government International Bonds |
||||||||||||
5.375% due 06/07/2033 (n) |
EUR |
2,700 |
3,117 |
|||||||||
5.875% due 07/11/2032 (n) |
8,300 |
9,946 |
||||||||||
6.750% due 07/11/2039 (n) |
1,500 |
1,819 |
||||||||||
Russia Foreign Bonds - Eurobond |
||||||||||||
5.625% due 04/04/2042 |
$ |
13,400 |
9,380 |
|||||||||
5.875% due 09/16/2043 |
200 |
137 |
||||||||||
Turkiye Government Bonds |
||||||||||||
40.305% (BISTREFI + 0.000%) due 09/06/2028 ~(n) |
TRY |
490,700 |
10,575 |
|||||||||
40.760% (BISTREFI + 0.000%) due 08/19/2026 ~ |
500 |
11 |
||||||||||
40.760% (BISTREFI + 0.000%) due 05/17/2028 ~(n) |
98,200 |
2,125 |
||||||||||
Ukraine Government International Bonds |
||||||||||||
0.000% due 02/01/2030 þ(h) |
$ |
766 |
551 |
|||||||||
0.000% due 02/01/2034 þ(h) |
2,861 |
1,624 |
||||||||||
0.000% due 02/01/2035 þ(h) |
2,418 |
1,459 |
||||||||||
0.000% due 02/01/2036 þ(h)(n) |
2,015 |
1,214 |
||||||||||
4.500% due 02/01/2029 þ(n) |
3,298 |
2,783 |
||||||||||
4.500% due 02/01/2034 þ |
3,769 |
2,657 |
||||||||||
4.500% due 02/01/2035 þ |
3,287 |
2,284 |
||||||||||
4.500% due 02/01/2036 þ |
3,663 |
2,513 |
||||||||||
Venezuela Government International Bonds |
||||||||||||
9.250% due 09/15/2027 ^(d) |
3,898 |
1,925 |
||||||||||
9.250% due 05/07/2028 ^(d) |
2,600 |
1,255 |
||||||||||
11.950% due 08/05/2031 ^(d) |
1,500 |
818 |
||||||||||
Total Sovereign Issues (Cost $271,873) |
300,348 |
|||||||||||
SHARES |
||||||||||||
COMMON STOCKS 2.9% |
||||||||||||
COMMUNICATION SERVICES 0.6% |
||||||||||||
Clear Channel Outdoor Holdings, Inc. (e) |
1,167,686 |
2,826 |
||||||||||
iHeartMedia, Inc. Class A (e) |
242,378 |
1,040 |
||||||||||
iHeartMedia, Inc. Class B «(e) |
213,502 |
788 |
||||||||||
Promotora de Informaciones SA Class A (e) |
1,233,318 |
431 |
||||||||||
SES SA «(e) |
460,477 |
6,965 |
||||||||||
Uniti Group, Inc. (e) |
255,797 |
2,934 |
||||||||||
14,984 |
||||||||||||
CONSUMER DISCRETIONARY 0.0% |
||||||||||||
Steinhoff International Holdings NV «(e)(m) |
97,336,701 |
0 |
||||||||||
West Marine «(e)(m) |
13,000 |
82 |
||||||||||
82 |
||||||||||||
SHARES |
MARKET VALUE (000S) |
|||||||||||
FINANCIALS 1.1% |
||||||||||||
Banca Monte dei Paschi di Siena SpA |
2,152,500 |
$ |
26,750 |
|||||||||
UBS Group AG |
4,114 |
204 |
||||||||||
XBP Global Holdings, Inc. (e) |
1,223 |
3 |
||||||||||
26,957 |
||||||||||||
INDUSTRIALS 1.2% |
||||||||||||
Drillco Holdings Luxembourg SA «(m) |
76,260 |
1,748 |
||||||||||
Foresea Holdings SA « |
31,696 |
727 |
||||||||||
Incora Intermediate II LLC «(e)(m) |
704,040 |
27,751 |
||||||||||
McDermott International Ltd. (e) |
461 |
10 |
||||||||||
Westmoreland Mining Holdings «(e)(m) |
44,693 |
29 |
||||||||||
Westmoreland Mining LLC «(e)(m) |
78,444 |
206 |
||||||||||
30,471 |
||||||||||||
REAL ESTATE 0.0% |
||||||||||||
Country Garden Holdings Co. Ltd. (e) |
288,832 |
6 |
||||||||||
MNSN Holdings, Inc. (e)(m) |
8,724 |
733 |
||||||||||
739 |
||||||||||||
Total Common Stocks (Cost $62,295) |
73,233 |
|||||||||||
WARRANTS 0.1% |
||||||||||||
COMMUNICATION SERVICES 0.1% |
||||||||||||
Windstream Holdings II LLC - Exp. 08/01/2035 « |
275,876 |
3,161 |
||||||||||
CONSUMER DISCRETIONARY 0.0% |
||||||||||||
West Marine - Exp. 09/08/2028 « |
1,687 |
0 |
||||||||||
Total Warrants (Cost $1,680) |
3,161 |
|||||||||||
PREFERRED SECURITIES 1.9% |
||||||||||||
BANKING & FINANCE 1.4% |
||||||||||||
ADLER Group SA « |
3,916,182 |
0 |
||||||||||
AGFC Capital Trust I |
||||||||||||
5.685% due 01/15/2067 (n) |
1,800,000 |
1,125 |
||||||||||
Brighthouse Holdings LLC |
||||||||||||
6.500% due 07/27/2037 þ(j) |
110,000 |
95 |
||||||||||
Compeer Financial ACA |
||||||||||||
4.875% due 08/15/2026 (j) |
4,400,000 |
4,368 |
||||||||||
WAFC Voussoir « |
19,262,485 |
19,262 |
||||||||||
Windstream Holdings II LLC |
||||||||||||
11.000% « |
9,034 |
10,070 |
||||||||||
34,920 |
||||||||||||
INDUSTRIALS 0.5% |
||||||||||||
Clover Holdings, Inc. |
||||||||||||
0.000% «(m) |
37,854 |
725 |
||||||||||
SVB Financial Trust |
||||||||||||
0.000% due 11/07/2032 (g) |
51,920 |
5 |
||||||||||
11.000% due 11/07/2032 |
9,947 |
4,576 |
||||||||||
Syniverse Holdings, Inc. |
||||||||||||
12.500% «(m) |
7,623,513 |
5,554 |
||||||||||
Venture Global LNG, Inc. |
||||||||||||
9.000% due 09/30/2029 (j)(n) |
1,660,000 |
1,619 |
||||||||||
12,479 |
||||||||||||
Total Preferred Securities (Cost $49,134) |
47,399 |
|||||||||||
36 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
SHARES |
MARKET VALUE (000S) |
|||||||||||
REAL ESTATE INVESTMENT TRUSTS 0.2% |
||||||||||||
REAL ESTATE 0.2% |
||||||||||||
VICI Properties, Inc. |
210,228 |
$ |
5,582 |
|||||||||
Total Real Estate Investment Trusts (Cost $1,514) |
5,582 |
|||||||||||
SHORT-TERM INSTRUMENTS 3.3% |
||||||||||||
MUTUAL FUNDS 0.2% |
||||||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class |
||||||||||||
3.690% (l) |
4,246,868 |
4,247 |
||||||||||
PRINCIPAL AMOUNT (000S) |
||||||||||||
EGYPT TREASURY BILLS 0.2% |
||||||||||||
23.866% due 09/15/2026 - 10/20/2026 (f)(g) |
EGP |
252,800 |
4,836 |
|||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
NIGERIA TREASURY BILLS 2.2% |
||||||||||||
20.606% due 01/14/2027 - 01/28/2027 (f)(g) |
NGN |
83,267,100 |
$ |
54,015 |
||||||||
U.S. TREASURY BILLS 0.7% |
||||||||||||
3.691% due 07/21/2026 - 09/24/2026 (f)(g)(p)(r) |
$ |
18,476 |
18,419 |
|||||||||
Total Short-Term Instruments (Cost $81,168) |
81,517 |
|||||||||||
Total Investments in Securities (Cost $3,209,277) |
2,987,037 |
|||||||||||
SHARES |
||||||||||||
INVESTMENTS IN AFFILIATES 8.5% |
||||||||||||
COMMON STOCKS 0.7% |
||||||||||||
AFFILIATED INVESTMENTS 0.7% |
||||||||||||
Windstream Servcies LLC (e) |
1,416,163 |
16,243 |
||||||||||
Total Common Stocks (Cost $8,639) |
16,243 |
|||||||||||
SHARES |
MARKET VALUE (000S) |
|||||||||||
SHORT-TERM INSTRUMENTS 7.8% |
||||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 7.8% |
||||||||||||
PIMCO Short-Term Floating NAV Portfolio III |
20,135,783 |
$ |
196,143 |
|||||||||
Total Short-Term Instruments (Cost $196,115) |
196,143 |
|||||||||||
Total Investments in Affiliates (Cost $204,754) |
212,386 |
|||||||||||
Total Investments 127.7% (Cost $3,414,031) |
$ |
3,199,423 |
||||||||||
Financial Derivative Instruments (o)(q) (0.5)% (Cost or Premiums, net $(33,180)) |
(11,958 |
) | ||||||||||
Other Assets and Liabilities, net (27.2)% |
(680,278 |
) | ||||||||||
Net Assets Applicable to Common Shareholders 100.0% |
$ |
2,507,187 |
||||||||||
NOTES TO SCHEDULE OF INVESTMENTS:
* |
A zero balance may reflect actual amounts rounding to less than one thousand. |
^ |
Security is in default. |
« |
Security valued using significant unobservable inputs (Level 3). |
µ |
All or a portion of this amount represents unfunded loan commitments. The interest rate for the unfunded portion will be determined at the time of funding. See Note 4, Securities and Other Investments, in the Notes to Financial Statements for more information regarding unfunded loan commitments. |
~ |
Variable or Floating rate security. Rate shown is the rate in effect as of period end. Certain variable rate securities are not based on a published reference rate and spread, rather are determined by the issuer or agent and are based on current market conditions. Reference rate is as of reset date, which may vary by security. These securities may not indicate a reference rate and/or spread in their description. |
• |
Rate shown is the rate in effect as of period end. The rate may be based on a fixed rate, a capped rate or a floor rate and may convert to a variable or floating rate in the future. These securities do not indicate a reference rate and spread in their description. |
þ |
Coupon represents a rate which changes periodically based on a predetermined schedule or event. Rate shown is the rate in effect as of period end. |
(a) |
Security is an Interest Only (“IO”) or IO Strip. |
(b) |
When-issued security. |
(c) |
Payment in-kind security. |
(d) |
Security is not accruing income as of the date of this report. |
(e) |
Security did not produce income within the last twelve months. |
(f) |
Coupon represents a weighted average yield to maturity. |
(g) |
Zero coupon security. |
(h) |
Security becomes interest bearing at a future date. |
(i) |
Principal amount of security is adjusted for inflation. |
(j) |
Perpetual maturity; date shown, if applicable, represents next contractual call date. |
(k) |
Contingent convertible security. |
(l) |
Coupon represents a 7-Day Yield. |
(m) RESTRICTED SECURITIES:
Issuer Description |
Acquisition Date |
Cost |
Market Value |
Market Value as Percentage of Net Assets Applicable to Common Shareholders |
||||||||||
Clover Holdings, Inc. |
12/09/2024 |
$ |
568 |
$ |
725 |
0.03 |
% | |||||||
Country Garden Holdings Co. Ltd.0.000% due 12/31/2031 |
12/31/2025 |
66 |
30 |
0.00 |
||||||||||
Drillco Holdings Luxembourg SA |
06/08/2023 |
1,523 |
1,748 |
0.07 |
||||||||||
Incora Intermediate II LLC |
01/31/2025 |
34,199 |
27,751 |
1.11 |
||||||||||
Incora Top Holdco LLC6.000% due 01/30/2033 |
01/31/2025 - 05/01/2026 |
16,275 |
25,651 |
1.02 |
||||||||||
MNSN Holdings, Inc. |
03/16/2023 - 03/29/2023 |
97 |
733 |
0.03 |
||||||||||
Steinhoff International Holdings NV |
06/30/2023 - 10/30/2023 |
0 |
0 |
0.00 |
||||||||||
Syniverse Holdings, Inc. |
05/12/2022 - 05/31/2026 |
7,530 |
5,554 |
0.22 |
||||||||||
West Marine |
09/12/2023 |
187 |
82 |
0.00 |
||||||||||
Westmoreland Mining Holdings |
07/29/2015 - 03/26/2019 |
1,161 |
29 |
0.00 |
||||||||||
Westmoreland Mining LLC |
06/30/2023 - 05/14/2026 |
365 |
206 |
0.01 |
||||||||||
$ |
61,971 |
$ |
62,509 |
2.49 |
% | |||||||||
See Accompanying Notes |
ANNUAL REPORT |
| |
JUNE 30, 2026 |
37 |
Schedule of Investments |
PIMCO Corporate & Income Opportunity Fund |
(Cont.) |
BORROWINGS AND OTHER FINANCING TRANSACTIONS
REVERSE REPURCHASE AGREEMENTS:
Counterparty |
Borrowing Rate (1) |
Settlement Date |
Maturity Date |
Amount Borrowed (1) |
Payable for Reverse Repurchase Agreements |
|||||||||||||||||
BOS |
3.850 |
% |
06/18/2026 |
07/20/2026 |
$ |
(3,636 |
) |
$ |
(3,642 |
) | ||||||||||||
3.990 |
05/05/2026 |
07/02/2026 |
(19,352 |
) |
(19,474 |
) | ||||||||||||||||
4.050 |
06/30/2026 |
TBD |
(2) |
(498 |
) |
(498 |
) | |||||||||||||||
BPS |
(0.250 |
) |
06/17/2026 |
TBD |
(2) |
EUR |
(703 |
) |
(804 |
) | ||||||||||||
2.500 |
06/17/2026 |
TBD |
(2) |
EUR |
(947 |
) |
(1,083 |
) | ||||||||||||||
2.500 |
06/18/2026 |
TBD |
(2) |
(1,042 |
) |
(1,191 |
) | |||||||||||||||
2.520 |
06/17/2026 |
TBD |
(2) |
(6,016 |
) |
(6,880 |
) | |||||||||||||||
2.590 |
06/17/2026 |
TBD |
(2) |
(17,316 |
) |
(19,805 |
) | |||||||||||||||
4.000 |
07/02/2026 |
09/04/2026 |
$ |
(6,794 |
) |
(6,794 |
) | |||||||||||||||
4.040 |
05/04/2026 |
07/02/2026 |
(7,445 |
) |
(7,494 |
) | ||||||||||||||||
4.270 |
06/26/2026 |
09/28/2026 |
GBP |
(11,978 |
) |
(15,898 |
) | |||||||||||||||
BRC |
1.650 |
06/17/2026 |
TBD |
(2) |
(4,566 |
) |
(5,220 |
) | ||||||||||||||
1.800 |
06/17/2026 |
TBD |
(2) |
(480 |
) |
(549 |
) | |||||||||||||||
2.450 |
06/17/2026 |
07/01/2026 |
(1,291 |
) |
(1,477 |
) | ||||||||||||||||
2.450 |
06/17/2026 |
07/02/2026 |
(2,413 |
) |
(2,759 |
) | ||||||||||||||||
2.500 |
06/17/2026 |
TBD |
(2) |
(10,326 |
) |
(11,810 |
) | |||||||||||||||
4.510 |
05/14/2026 |
09/10/2026 |
$ |
(752 |
) |
(757 |
) | |||||||||||||||
4.700 |
06/17/2026 |
10/15/2026 |
(3,745 |
) |
(3,751 |
) | ||||||||||||||||
4.760 |
05/14/2026 |
09/10/2026 |
(685 |
) |
(690 |
) | ||||||||||||||||
4.810 |
05/14/2026 |
09/10/2026 |
(5,362 |
) |
(5,396 |
) | ||||||||||||||||
BYR |
3.970 |
06/26/2026 |
08/03/2026 |
(17,861 |
) |
(17,871 |
) | |||||||||||||||
4.120 |
04/23/2026 |
07/23/2026 |
(1,434 |
) |
(1,446 |
) | ||||||||||||||||
4.120 |
06/16/2026 |
08/17/2026 |
(14,779 |
) |
(14,805 |
) | ||||||||||||||||
4.170 |
06/15/2026 |
08/14/2026 |
(49,027 |
) |
(49,118 |
) | ||||||||||||||||
CDC |
4.020 |
05/13/2026 |
09/09/2026 |
(8,565 |
) |
(8,612 |
) | |||||||||||||||
4.020 |
06/22/2026 |
10/20/2026 |
(1,281 |
) |
(1,282 |
) | ||||||||||||||||
4.070 |
06/23/2026 |
07/28/2026 |
(692 |
) |
(692 |
) | ||||||||||||||||
4.100 |
05/11/2026 |
09/01/2026 |
(85 |
) |
(86 |
) | ||||||||||||||||
4.100 |
05/15/2026 |
09/01/2026 |
(156 |
) |
(156 |
) | ||||||||||||||||
4.100 |
05/15/2026 |
09/09/2026 |
$ |
(856 |
) |
(860 |
) | |||||||||||||||
4.120 |
05/08/2026 |
08/21/2026 |
(1,715 |
) |
(1,725 |
) | ||||||||||||||||
4.120 |
05/13/2026 |
09/09/2026 |
(1,326 |
) |
(1,334 |
) | ||||||||||||||||
4.120 |
06/08/2026 |
07/02/2026 |
(1,410 |
) |
(1,413 |
) | ||||||||||||||||
4.120 |
06/10/2026 |
09/09/2026 |
(1,279 |
) |
(1,282 |
) | ||||||||||||||||
4.120 |
06/22/2026 |
10/20/2026 |
(24,844 |
) |
(24,869 |
) | ||||||||||||||||
4.120 |
06/25/2026 |
09/09/2026 |
(979 |
) |
(979 |
) | ||||||||||||||||
4.120 |
06/30/2026 |
07/01/2026 |
(3,161 |
) |
(3,162 |
) | ||||||||||||||||
4.120 |
07/01/2026 |
07/02/2026 |
(2,905 |
) |
(2,905 |
) | ||||||||||||||||
4.130 |
06/01/2026 |
09/01/2026 |
(13,192 |
) |
(13,238 |
) | ||||||||||||||||
4.130 |
06/02/2026 |
07/02/2026 |
(11,007 |
) |
(11,044 |
) | ||||||||||||||||
4.130 |
06/11/2026 |
09/01/2026 |
(21,293 |
) |
(21,342 |
) | ||||||||||||||||
4.130 |
06/30/2026 |
09/01/2026 |
(2,216 |
) |
(2,217 |
) | ||||||||||||||||
4.130 |
07/01/2026 |
09/01/2026 |
(1,790 |
) |
(1,790 |
) | ||||||||||||||||
4.170 |
04/28/2026 |
07/28/2026 |
(966 |
) |
(973 |
) | ||||||||||||||||
4.190 |
04/15/2026 |
07/15/2026 |
(318 |
) |
(321 |
) | ||||||||||||||||
CEW |
3.870 |
05/13/2026 |
TBD |
(2) |
(6,135 |
) |
(6,167 |
) | ||||||||||||||
4.110 |
05/27/2026 |
08/27/2026 |
(45,357 |
) |
(45,538 |
) | ||||||||||||||||
DBL |
3.950 |
06/01/2026 |
TBD |
(2) |
(13,370 |
) |
(13,404 |
) | ||||||||||||||
4.030 |
06/05/2026 |
07/01/2026 |
(14,706 |
) |
(14,749 |
) | ||||||||||||||||
4.070 |
07/01/2026 |
07/30/2026 |
(14,822 |
) |
(14,822 |
) | ||||||||||||||||
4.105 |
06/18/2026 |
08/21/2026 |
(19,339 |
) |
(19,368 |
) | ||||||||||||||||
4.195 |
06/26/2026 |
09/25/2026 |
(1,975 |
) |
(1,976 |
) | ||||||||||||||||
4.295 |
06/26/2026 |
09/25/2026 |
(3,216 |
) |
(3,218 |
) | ||||||||||||||||
4.395 |
06/26/2026 |
09/25/2026 |
(3,173 |
) |
(3,174 |
) | ||||||||||||||||
DEU |
3.800 |
06/11/2026 |
07/13/2026 |
(14,542 |
) |
(14,573 |
) | |||||||||||||||
4.050 |
06/11/2026 |
07/13/2026 |
(1,518 |
) |
(1,521 |
) | ||||||||||||||||
IND |
4.130 |
04/15/2026 |
07/01/2026 |
(7,138 |
) |
(7,201 |
) | |||||||||||||||
4.130 |
04/15/2026 |
07/02/2026 |
(521 |
) |
(525 |
) | ||||||||||||||||
4.130 |
04/15/2026 |
07/15/2026 |
(28,049 |
) |
(28,297 |
) | ||||||||||||||||
4.130 |
06/04/2026 |
09/04/2026 |
(442 |
) |
(444 |
) | ||||||||||||||||
4.130 |
06/15/2026 |
07/01/2026 |
(347 |
) |
(348 |
) | ||||||||||||||||
4.130 |
06/16/2026 |
09/16/2026 |
(4,498 |
) |
(4,506 |
) | ||||||||||||||||
4.130 |
07/01/2026 |
07/15/2026 |
(9,555 |
) |
(9,555 |
) | ||||||||||||||||
4.180 |
04/15/2026 |
07/15/2026 |
(2,617 |
) |
(2,641 |
) | ||||||||||||||||
4.190 |
04/08/2026 |
07/02/2026 |
(2,486 |
) |
(2,510 |
) | ||||||||||||||||
JML |
1.250 |
06/17/2026 |
TBD |
(2) |
EUR |
(490 |
) |
(560 |
) | |||||||||||||
38 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
Counterparty |
Borrowing Rate (1) |
Settlement Date |
Maturity Date |
Amount Borrowed (1) |
Payable for Reverse Repurchase Agreements |
|||||||||||||||||
1.750 |
% |
06/17/2026 |
TBD |
(2) |
EUR |
(264 |
) |
$ |
(302 |
) | ||||||||||||
2.050 |
06/17/2026 |
TBD |
(2) |
(973 |
) |
(1,112 |
) | |||||||||||||||
JPS |
4.070 |
05/14/2026 |
11/16/2026 |
$ |
(447 |
) |
(449 |
) | ||||||||||||||
4.220 |
05/14/2026 |
11/16/2026 |
(5,792 |
) |
(5,825 |
) | ||||||||||||||||
4.320 |
05/14/2026 |
11/16/2026 |
(2,965 |
) |
(2,982 |
) | ||||||||||||||||
MBC |
2.500 |
06/17/2026 |
TBD |
(2) |
EUR |
(2,488 |
) |
(2,845 |
) | |||||||||||||
MEI |
4.100 |
05/29/2026 |
TBD |
(2) |
(225 |
) |
(226 |
) | ||||||||||||||
4.100 |
06/30/2026 |
06/29/2028 |
(546 |
) |
(547 |
) | ||||||||||||||||
MSB |
4.470 |
05/18/2026 |
11/12/2026 |
(1,525 |
) |
(1,533 |
) | |||||||||||||||
4.520 |
05/18/2026 |
11/12/2026 |
(3,993 |
) |
(4,015 |
) | ||||||||||||||||
4.670 |
05/18/2026 |
11/12/2026 |
(8,009 |
) |
(8,054 |
) | ||||||||||||||||
MYI |
1.750 |
06/17/2026 |
07/08/2026 |
EUR |
(256 |
) |
(292 |
) | ||||||||||||||
2.000 |
06/30/2026 |
07/14/2026 |
$ |
(1,281 |
) |
(1,281 |
) | |||||||||||||||
2.750 |
01/15/2026 |
07/08/2026 |
(275 |
) |
(279 |
) | ||||||||||||||||
3.250 |
12/19/2025 |
07/08/2026 |
GBP |
(5,998 |
) |
(8,095 |
) | |||||||||||||||
3.250 |
06/26/2026 |
07/08/2026 |
$ |
(2,137 |
) |
(2,138 |
) | |||||||||||||||
NOM |
4.000 |
03/05/2026 |
TBD |
(2) |
(24,163 |
) |
(24,480 |
) | ||||||||||||||
RDR |
4.000 |
12/18/2025 |
TBD |
(2) |
(989 |
) |
(1,010 |
) | ||||||||||||||
RTA |
4.145 |
04/17/2026 |
10/19/2026 |
(809 |
) |
(817 |
) | |||||||||||||||
4.145 |
05/20/2026 |
11/20/2026 |
(5,677 |
) |
(5,704 |
) | ||||||||||||||||
4.145 |
06/02/2026 |
11/30/2026 |
(646 |
) |
(648 |
) | ||||||||||||||||
4.145 |
06/25/2026 |
11/20/2026 |
(1,459 |
) |
(1,460 |
) | ||||||||||||||||
4.370 |
06/05/2026 |
08/04/2026 |
(90 |
) |
(91 |
) | ||||||||||||||||
4.420 |
06/05/2026 |
08/04/2026 |
(11,736 |
) |
(11,773 |
) | ||||||||||||||||
4.470 |
06/05/2026 |
08/04/2026 |
(3,699 |
) |
(3,711 |
) | ||||||||||||||||
SCX |
4.050 |
02/17/2026 |
TBD |
(2) |
(12,536 |
) |
(12,725 |
) | ||||||||||||||
4.050 |
04/16/2026 |
TBD |
(2) |
(87 |
) |
(88 |
) | |||||||||||||||
4.100 |
05/18/2026 |
TBD |
(2) |
(1,240 |
) |
(1,246 |
) | |||||||||||||||
4.170 |
06/26/2026 |
08/04/2026 |
(2,435 |
) |
(2,437 |
) | ||||||||||||||||
SOG |
2.360 |
06/17/2026 |
TBD |
(2) |
EUR |
(4,394 |
) |
(5,025 |
) | |||||||||||||
2.360 |
06/26/2026 |
07/01/2026 |
(1,738 |
) |
(1,987 |
) | ||||||||||||||||
2.360 |
07/01/2026 |
TBD |
(2) |
(1,634 |
) |
(1,867 |
) | |||||||||||||||
2.370 |
06/17/2026 |
TBD |
(2) |
(7,004 |
) |
(8,010 |
) | |||||||||||||||
2.450 |
06/17/2026 |
TBD |
(2) |
(9,455 |
) |
(10,814 |
) | |||||||||||||||
2.450 |
06/25/2026 |
TBD |
(2) |
(4,455 |
) |
(5,092 |
) | |||||||||||||||
2.470 |
06/17/2026 |
TBD |
(2) |
(1,712 |
) |
(1,958 |
) | |||||||||||||||
3.910 |
05/08/2026 |
TBD |
(2) |
$ |
(4,361 |
) |
(4,385 |
) | ||||||||||||||
4.110 |
04/16/2026 |
07/16/2026 |
(604 |
) |
(610 |
) | ||||||||||||||||
4.110 |
04/20/2026 |
07/08/2026 |
(2,064 |
) |
(2,081 |
) | ||||||||||||||||
4.180 |
05/29/2026 |
08/26/2026 |
(1,036 |
) |
(1,040 |
) | ||||||||||||||||
4.220 |
05/04/2026 |
08/04/2026 |
(10,242 |
) |
(10,311 |
) | ||||||||||||||||
4.220 |
05/22/2026 |
08/04/2026 |
(2,126 |
) |
(2,136 |
) | ||||||||||||||||
4.220 |
06/01/2026 |
08/04/2026 |
(11,941 |
) |
(11,983 |
) | ||||||||||||||||
4.230 |
04/07/2026 |
07/07/2026 |
(738 |
) |
(745 |
) | ||||||||||||||||
4.230 |
04/08/2026 |
07/08/2026 |
(2,593 |
) |
(2,619 |
) | ||||||||||||||||
4.230 |
04/16/2026 |
07/16/2026 |
(27,045 |
) |
(27,287 |
) | ||||||||||||||||
4.230 |
04/29/2026 |
07/16/2026 |
(3,710 |
) |
(3,737 |
) | ||||||||||||||||
4.230 |
05/13/2026 |
07/07/2026 |
(871 |
) |
(876 |
) | ||||||||||||||||
4.230 |
05/13/2026 |
07/16/2026 |
(540 |
) |
(543 |
) | ||||||||||||||||
4.230 |
05/28/2026 |
07/08/2026 |
(2,689 |
) |
(2,700 |
) | ||||||||||||||||
4.230 |
06/09/2026 |
07/16/2026 |
(1,287 |
) |
(1,290 |
) | ||||||||||||||||
4.230 |
06/17/2026 |
07/16/2026 |
(5,113 |
) |
(5,122 |
) | ||||||||||||||||
4.230 |
06/24/2026 |
07/16/2026 |
(1,643 |
) |
(1,644 |
) | ||||||||||||||||
TDM |
3.850 |
06/16/2026 |
TBD |
(2) |
(427 |
) |
(427 |
) | ||||||||||||||
3.930 |
06/16/2026 |
TBD |
(2) |
(2,307 |
) |
(2,310 |
) | |||||||||||||||
3.930 |
06/29/2026 |
TBD |
(2) |
(946 |
) |
(946 |
) | |||||||||||||||
UBS |
1.700 |
07/02/2026 |
TBD |
(2) |
EUR |
(533 |
) |
(609 |
) | |||||||||||||
1.750 |
06/17/2026 |
TBD |
(2) |
(1,583 |
) |
(1,810 |
) | |||||||||||||||
2.200 |
06/22/2026 |
07/31/2026 |
$ |
(2,399 |
) |
(2,400 |
) | |||||||||||||||
2.470 |
06/17/2026 |
TBD |
(2) |
EUR |
(3,531 |
) |
(4,038 |
) | ||||||||||||||
2.527 |
06/30/2026 |
09/30/2026 |
(32,622 |
) |
(37,276 |
) | ||||||||||||||||
2.567 |
06/10/2026 |
09/10/2026 |
(5,671 |
) |
(6,490 |
) | ||||||||||||||||
2.850 |
06/22/2026 |
07/31/2026 |
$ |
(4,545 |
) |
(4,548 |
) | |||||||||||||||
3.000 |
12/19/2025 |
TBD |
(2) |
(2,385 |
) |
(2,424 |
) | |||||||||||||||
3.250 |
05/26/2026 |
07/08/2026 |
GBP |
(216 |
) |
(288 |
) | |||||||||||||||
3.960 |
05/05/2026 |
08/04/2026 |
$ |
(5,838 |
) |
(5,874 |
) | |||||||||||||||
4.000 |
02/03/2026 |
TBD |
(2) |
(5,896 |
) |
(5,993 |
) | |||||||||||||||
4.145 |
06/02/2026 |
11/30/2026 |
(10,867 |
) |
(10,903 |
) | ||||||||||||||||
Total Reverse Repurchase Agreements |
$ |
(800,954 |
) | |||||||||||||||||||
See Accompanying Notes |
ANNUAL REPORT |
| |
JUNE 30, 2026 |
39 |
Schedule of Investments |
PIMCO Corporate & Income Opportunity Fund |
(Cont.) |
BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY
The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of June 30, 2026:
Counterparty |
Repurchase Agreement Proceeds to be Received |
Payable for Reverse Repurchase Agreements |
Payable for Sale-Buyback Transactions |
Total Borrowings and Other Financing Transactions |
Collateral Pledged/(Received) |
Net Exposure (3) |
||||||||||||||||||
Global/Master Repurchase Agreement |
||||||||||||||||||||||||
BOS |
$ |
0 |
$ |
(23,614 |
) |
$ |
0 |
$ |
(23,614 |
) |
$ |
25,389 |
$ |
1,775 |
||||||||||
BPS |
0 |
(59,949 |
) |
0 |
(59,949 |
) |
59,667 |
(282 |
) | |||||||||||||||
BRC |
0 |
(32,409 |
) |
0 |
(32,409 |
) |
55,867 |
23,458 |
||||||||||||||||
BYR |
0 |
(83,240 |
) |
0 |
(83,240 |
) |
95,025 |
11,785 |
||||||||||||||||
CDC |
0 |
(100,282 |
) |
0 |
(100,282 |
) |
109,697 |
9,415 |
||||||||||||||||
CEW |
0 |
(51,705 |
) |
0 |
(51,705 |
) |
53,329 |
1,624 |
||||||||||||||||
DBL |
0 |
(70,711 |
) |
0 |
(70,711 |
) |
64,285 |
(6,426 |
) | |||||||||||||||
DEU |
0 |
(16,094 |
) |
0 |
(16,094 |
) |
18,633 |
2,539 |
||||||||||||||||
IND |
0 |
(56,027 |
) |
0 |
(56,027 |
) |
52,162 |
(3,865 |
) | |||||||||||||||
JML |
0 |
(1,974 |
) |
0 |
(1,974 |
) |
1,899 |
(75 |
) | |||||||||||||||
JPS |
0 |
(9,256 |
) |
0 |
(9,256 |
) |
10,535 |
1,279 |
||||||||||||||||
MBC |
0 |
(2,845 |
) |
0 |
(2,845 |
) |
3,137 |
292 |
||||||||||||||||
MEI |
0 |
(773 |
) |
0 |
(773 |
) |
874 |
101 |
||||||||||||||||
MSB |
0 |
(13,602 |
) |
0 |
(13,602 |
) |
17,263 |
3,661 |
||||||||||||||||
MYI |
0 |
(12,085 |
) |
0 |
(12,085 |
) |
12,728 |
643 |
||||||||||||||||
NOM |
0 |
(24,480 |
) |
0 |
(24,480 |
) |
30,310 |
5,830 |
||||||||||||||||
RDR |
0 |
(1,010 |
) |
0 |
(1,010 |
) |
1,005 |
(5 |
) | |||||||||||||||
RTA |
0 |
(24,204 |
) |
0 |
(24,204 |
) |
42,008 |
17,804 |
||||||||||||||||
SCX |
0 |
(16,496 |
) |
0 |
(16,496 |
) |
17,676 |
1,180 |
||||||||||||||||
SOG |
0 |
(113,862 |
) |
0 |
(113,862 |
) |
125,862 |
12,000 |
||||||||||||||||
TDM |
0 |
(3,683 |
) |
0 |
(3,683 |
) |
3,875 |
192 |
||||||||||||||||
UBS |
0 |
(82,653 |
) |
0 |
(82,653 |
) |
60,412 |
(22,241 |
) | |||||||||||||||
Total Borrowings and Other Financing Transactions |
$ |
0 |
$ |
(800,954 |
) |
$ |
0 |
|||||||||||||||||
CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS
Remaining Contractual Maturity of the Agreements
Overnight and Continuous |
Up to 30 days |
31-90 days |
Greater Than 90 days |
Total |
||||||||||||||||
Reverse Repurchase Agreements |
||||||||||||||||||||
Corporate Bonds & Notes |
$ |
(14,175 |
) |
$ |
(140,022 |
) |
$ |
(244,793 |
) |
$ |
(192,784 |
) |
$ |
(591,774 |
) | |||||
U.S. Government Agencies |
0 |
(16,094 |
) |
0 |
0 |
(16,094 |
) | |||||||||||||
Non-Agency Mortgage-Backed Securities |
0 |
0 |
(38,780 |
) |
(26,609 |
) |
(65,389 |
) | ||||||||||||
Asset-Backed Securities |
0 |
0 |
(11,374 |
) |
0 |
(11,374 |
) | |||||||||||||
Sovereign Issues |
(14,749 |
) |
(2,417 |
) |
(2,437 |
) |
(55,959 |
) |
(75,562 |
) | ||||||||||
Preferred Securities |
0 |
(2,419 |
) |
0 |
0 |
(2,419 |
) | |||||||||||||
Total Borrowings |
$ |
(28,924 |
) |
$ |
(160,952 |
) |
$ |
(297,384 |
) |
$ |
(275,352 |
) |
$ |
(762,612 |
) | |||||
Payable for reverse repurchase agreements (4) |
$ |
(762,612 |
) | |||||||||||||||||
(n) |
Securities with an aggregate market value of $865,562 and cash of $1,895 have been pledged as collateral under the terms of the above master agreements as of June 30, 2026. |
(1) |
The average amount of borrowings outstanding during the period ended June 30, 2026 was $(517,955) at a weighted average interest rate of 3.934%. Average borrowings may include reverse repurchase agreements and sale-buyback transactions, if held during the period. |
(2) |
Open maturity reverse repurchase agreement. |
(3) |
Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information. |
(4) |
Unsettled reverse repurchase agreements liability of $(38,342) is outstanding at period end. |
40 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
(o) FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED
SWAP AGREEMENTS:
CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION
(1)
Reference Entity |
Fixed Receive Rate |
Payment Frequency |
Maturity Date |
Implied Credit Spread at June 30, 2026 (2) |
Notional Amount (3) |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Market Value (4) |
Variation Margin |
|||||||||||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||||||||||
AT&T, Inc. |
1.000 |
% |
Quarterly |
06/20/2028 |
0.395 |
% |
$ |
900 |
$ |
(9 |
) |
$ |
20 |
$ |
11 |
$ |
0 |
$ |
0 |
|||||||||||||||||||||||||
Boeing Co. |
1.000 |
Quarterly |
12/20/2029 |
0.464 |
600 |
0 |
10 |
10 |
0 |
0 |
||||||||||||||||||||||||||||||||||
Boeing Co. |
1.000 |
Quarterly |
12/20/2030 |
0.561 |
20,300 |
315 |
53 |
368 |
1 |
0 |
||||||||||||||||||||||||||||||||||
Oracle Corp. |
1.000 |
Quarterly |
06/20/2030 |
1.423 |
3,700 |
81 |
(136 |
) |
(55 |
) |
1 |
0 |
||||||||||||||||||||||||||||||||
Stellantis NV |
5.000 |
Quarterly |
12/20/2030 |
1.653 |
EUR |
200 |
38 |
(6 |
) |
32 |
0 |
0 |
||||||||||||||||||||||||||||||||
Venture Global LNG, Inc. |
5.000 |
Quarterly |
12/20/2030 |
2.113 |
$ |
4,700 |
144 |
395 |
539 |
8 |
0 |
|||||||||||||||||||||||||||||||||
Worldline SA/France |
5.000 |
Quarterly |
12/20/2027 |
6.803 |
EUR |
1,200 |
(116 |
) |
84 |
(32 |
) |
1 |
0 |
|||||||||||||||||||||||||||||||
Worldline SA/France |
5.000 |
Quarterly |
12/20/2028 |
8.139 |
200 |
(29 |
) |
14 |
(15 |
) |
0 |
0 |
||||||||||||||||||||||||||||||||
Worldline SA/France |
5.000 |
Quarterly |
12/20/2030 |
9.729 |
36,800 |
(6,007 |
) |
(240 |
) |
(6,247 |
) |
66 |
0 |
|||||||||||||||||||||||||||||||
$ |
(5,583 |
) |
$ |
194 |
$ |
(5,389 |
) |
$ |
77 |
$ |
0 |
|||||||||||||||||||||||||||||||||
INTEREST RATE SWAPS
Pay/Receive Floating Rate |
Floating Rate Index |
Fixed Rate |
Payment Frequency |
Maturity Date |
Notional Amount |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Market Value |
Variation Margin |
|||||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||||
Pay |
1-Day GBP-SONIO Compounded-OIS |
3.500 |
% |
Annual |
03/18/2031 |
GBP |
40,140 |
$ |
(853 |
) |
$ |
(456 |
) |
$ |
(1,309 |
) |
$ |
0 |
$ |
(55 |
) | |||||||||||||||||
Receive |
1-Day GBP-SONIO Compounded-OIS |
0.750 |
Annual |
09/21/2032 |
15,700 |
1,524 |
2,781 |
4,305 |
28 |
0 |
||||||||||||||||||||||||||||
Receive |
1-Day GBP-SONIO Compounded-OIS |
2.000 |
Annual |
03/15/2033 |
8,000 |
891 |
482 |
1,373 |
15 |
0 |
||||||||||||||||||||||||||||
Receive |
1-Day GBP-SONIO Compounded-OIS |
0.750 |
Annual |
09/21/2052 |
3,900 |
800 |
2,452 |
3,252 |
13 |
0 |
||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.360 |
Semi-Annual |
02/15/2027 |
$ |
12,450 |
(2 |
) |
223 |
221 |
3 |
0 |
||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
1.600 |
Semi-Annual |
02/15/2027 |
49,800 |
(123 |
) |
(644 |
) |
(767 |
) |
0 |
(11 |
) | ||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.450 |
Semi-Annual |
02/17/2027 |
20,600 |
(5 |
) |
348 |
343 |
5 |
0 |
|||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
4.250 |
Annual |
02/17/2027 |
90,000 |
(893 |
) |
1,250 |
357 |
0 |
(13 |
) | ||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.420 |
Semi-Annual |
02/24/2027 |
6,000 |
(2 |
) |
104 |
102 |
1 |
0 |
|||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
1.650 |
Semi-Annual |
02/24/2027 |
19,900 |
(51 |
) |
(240 |
) |
(291 |
) |
0 |
(4 |
) | ||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
2.500 |
Semi-Annual |
12/20/2027 |
73,900 |
280 |
(2,207 |
) |
(1,927 |
) |
0 |
(44 |
) | |||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
2.000 |
Annual |
12/21/2027 |
83,700 |
(7,417 |
) |
4,242 |
(3,175 |
) |
0 |
(51 |
) | |||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.420 |
Semi-Annual |
08/17/2028 |
47,100 |
(11 |
) |
2,712 |
2,701 |
46 |
0 |
|||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.380 |
Semi-Annual |
08/24/2028 |
71,000 |
(17 |
) |
4,150 |
4,133 |
70 |
0 |
|||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.750 |
Annual |
12/20/2028 |
175,700 |
1,523 |
(2,408 |
) |
(885 |
) |
0 |
(203 |
) | |||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.000 |
Semi-Annual |
06/19/2029 |
263,700 |
8,727 |
(17,826 |
) |
(9,099 |
) |
0 |
(385 |
) | |||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
3.750 |
Annual |
06/20/2029 |
38,700 |
(732 |
) |
946 |
214 |
57 |
0 |
|||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
4.500 |
Annual |
12/21/2029 |
384,000 |
353 |
8,317 |
8,670 |
0 |
(682 |
) | |||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.250 |
Annual |
06/18/2030 |
568,100 |
(5,582 |
) |
(8,314 |
) |
(13,896 |
) |
0 |
(1,127 |
) | ||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.000 |
Semi-Annual |
12/16/2030 |
3,600 |
(60 |
) |
531 |
471 |
8 |
0 |
|||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.500 |
Annual |
03/18/2031 |
330,360 |
2,355 |
(8,321 |
) |
(5,966 |
) |
0 |
(828 |
) | |||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.160 |
Semi-Annual |
04/12/2031 |
6,100 |
(1 |
) |
839 |
838 |
15 |
0 |
|||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
0.750 |
Semi-Annual |
06/16/2031 |
19,700 |
1,152 |
1,906 |
3,058 |
50 |
0 |
||||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.250 |
Annual |
06/17/2031 |
313,010 |
(4,568 |
) |
(4,804 |
) |
(9,372 |
) |
0 |
(828 |
) | ||||||||||||||||||||||||
Pay (5) |
1-Day USD-SOFR Compounded-OIS |
4.000 |
Annual |
07/02/2031 |
418,500 |
2,214 |
(511 |
) |
1,703 |
0 |
(1,136 |
) | ||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.750 |
Semi-Annual |
12/15/2031 |
97,600 |
(1,365 |
) |
13,084 |
11,719 |
276 |
0 |
|||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.350 |
Semi-Annual |
02/09/2032 |
128,200 |
870 |
17,418 |
18,288 |
376 |
0 |
||||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
2.000 |
Annual |
12/21/2032 |
69,800 |
(9,546 |
) |
1,229 |
(8,317 |
) |
0 |
(240 |
) | |||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
3.750 |
Annual |
12/17/2035 |
28,110 |
(461 |
) |
1,016 |
555 |
137 |
0 |
|||||||||||||||||||||||||||
Receive (5) |
1-Day USD-SOFR Compounded-OIS |
4.000 |
Annual |
02/15/2036 |
62,000 |
(39 |
) |
104 |
65 |
309 |
0 |
|||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.500 |
Semi-Annual |
06/19/2044 |
161,500 |
(4,025 |
) |
(16,620 |
) |
(20,645 |
) |
0 |
(1,195 |
) | ||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
3.750 |
Annual |
12/17/2045 |
17,610 |
341 |
789 |
1,130 |
150 |
0 |
||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
2.250 |
Semi-Annual |
12/11/2049 |
2,200 |
(3 |
) |
750 |
747 |
16 |
0 |
|||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
2.000 |
Semi-Annual |
01/15/2050 |
19,800 |
(137 |
) |
7,577 |
7,440 |
141 |
0 |
|||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.750 |
Semi-Annual |
01/22/2050 |
28,200 |
(69 |
) |
11,739 |
11,670 |
195 |
0 |
|||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.875 |
Semi-Annual |
02/07/2050 |
29,300 |
(114 |
) |
11,667 |
11,553 |
206 |
0 |
|||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
2.250 |
Semi-Annual |
03/12/2050 |
9,800 |
(29 |
) |
3,320 |
3,291 |
72 |
0 |
|||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.250 |
Semi-Annual |
12/16/2050 |
17,000 |
1,539 |
6,950 |
8,489 |
112 |
0 |
||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.700 |
Semi-Annual |
02/01/2052 |
144,400 |
962 |
62,487 |
63,449 |
1,034 |
0 |
||||||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
11.250 |
Maturity |
01/04/2027 |
BRL |
2,600 |
0 |
(40 |
) |
(40 |
) |
0 |
0 |
|||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
11.275 |
Maturity |
01/04/2027 |
1,300 |
0 |
(20 |
) |
(20 |
) |
0 |
0 |
||||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
11.290 |
Maturity |
01/04/2027 |
1,300 |
0 |
(19 |
) |
(19 |
) |
0 |
0 |
||||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
11.731 |
Maturity |
01/04/2027 |
700 |
0 |
(8 |
) |
(8 |
) |
0 |
0 |
||||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
11.746 |
Maturity |
01/04/2027 |
3,000 |
0 |
(33 |
) |
(33 |
) |
0 |
0 |
||||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
11.901 |
Maturity |
01/04/2027 |
7,100 |
0 |
(70 |
) |
(70 |
) |
0 |
0 |
||||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
13.172 |
Maturity |
01/02/2031 |
50,500 |
3 |
(207 |
) |
(204 |
) |
29 |
0 |
||||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
13.180 |
Maturity |
01/02/2031 |
430,500 |
(174 |
) |
(1,539 |
) |
(1,713 |
) |
243 |
0 |
|||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
13.330 |
Maturity |
01/02/2031 |
2,300 |
0 |
(7 |
) |
(7 |
) |
1 |
0 |
||||||||||||||||||||||||||
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 41 |
Schedule of Investments |
PIMCO Corporate & Income Opportunity Fund |
(Cont.) |
Pay/Receive Floating Rate |
Floating Rate Index |
Fixed Rate |
Payment Frequency |
Maturity Date |
Notional Amount |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Market Value |
Variation Margin |
|||||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
13.724 |
% |
Maturity |
01/02/2031 |
BRL |
200,800 |
$ |
0 |
$ |
(251 |
) |
$ |
(251 |
) |
$ |
112 |
$ |
0 |
|||||||||||||||||||
Pay |
1-Year BRL-CDI |
13.790 |
Maturity |
01/02/2031 |
53,200 |
0 |
(50 |
) |
(50 |
) |
30 |
0 |
||||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
13.882 |
Maturity |
01/02/2031 |
261,500 |
0 |
(134 |
) |
(134 |
) |
146 |
0 |
||||||||||||||||||||||||||
Pay |
3-Month COP-IBR Compounded-OIS |
12.000 |
Annual |
06/17/2027 |
COP |
2,643,800 |
(1 |
) |
0 |
(1 |
) |
0 |
0 |
|||||||||||||||||||||||||
Pay |
3-Month COP-IBR Compounded-OIS |
11.250 |
Quarterly |
06/17/2028 |
271,200 |
0 |
0 |
0 |
0 |
0 |
||||||||||||||||||||||||||||
Receive |
6-Month EUR-EURIBOR |
0.150 |
Annual |
03/18/2030 |
EUR |
21,400 |
392 |
2,230 |
2,622 |
21 |
0 |
|||||||||||||||||||||||||||
Receive |
6-Month EUR-EURIBOR |
0.250 |
Annual |
09/21/2032 |
17,200 |
1,607 |
1,298 |
2,905 |
19 |
0 |
||||||||||||||||||||||||||||
Receive |
6-Month EUR-EURIBOR |
1.750 |
Annual |
03/15/2033 |
1,900 |
149 |
(9 |
) |
140 |
2 |
0 |
|||||||||||||||||||||||||||
Receive |
6-Month EUR-EURIBOR |
0.500 |
Annual |
09/21/2052 |
8,100 |
702 |
3,694 |
4,396 |
10 |
0 |
||||||||||||||||||||||||||||
Receive (5) |
6-Month EUR-EURIBOR |
0.830 |
Annual |
12/09/2052 |
39,800 |
480 |
4,918 |
5,398 |
0 |
(6 |
) | |||||||||||||||||||||||||||
$ |
(9,416 |
) |
$ |
116,815 |
$ |
107,399 |
$ |
3,948 |
$ |
(6,808 |
) | |||||||||||||||||||||||||||
Total Swap Agreements |
$ |
(14,999 |
) |
$ |
117,009 |
$ |
102,010 |
$ |
4,025 |
$ |
(6,808 |
) | ||||||||||||||||||||||||||
FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY
The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of June 30, 2026:
Financial Derivative Assets |
Financial Derivative Liabilities |
|||||||||||||||||||||||||||||||||||
Market Value |
Variation Margin Asset |
Total |
Market Value |
Variation Margin Liability |
Total |
|||||||||||||||||||||||||||||||
Purchased Options |
Futures |
Swap Agreements |
Written Options |
Futures |
Swap Agreements |
|||||||||||||||||||||||||||||||
Total Exchange-Traded or Centrally Cleared |
$ |
0 |
$ |
0 |
$ |
4,025 |
$ |
4,025 |
$ |
0 |
$ |
0 |
$ |
(6,808) |
$ |
(6,808) |
||||||||||||||||||||
(p) |
Securities with an aggregate market value of $2,896 and cash of $80,349 have been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of June 30, 2026. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information. |
(1) |
If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
(2) |
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
(3) |
The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
(4) |
The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the underlying referenced instrument’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
(5) |
This instrument has a forward starting effective date. See Note 2, Securities Transactions and Investment Income, in the Notes to Financial Statements for further information. |
(q) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
FORWARD FOREIGN CURRENCY CONTRACTS:
Counterparty |
Settlement Month |
Currency to be Delivered |
Currency to be Received |
Unrealized Appreciation/ (Depreciation) |
||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||
AZD |
07/2026 |
AUD |
35 |
$ |
25 |
$ |
1 |
$ |
0 |
|||||||||||||||
BOA |
07/2026 |
DOP |
133,076 |
2,262 |
16 |
0 |
||||||||||||||||||
07/2026 |
GBP |
17 |
22 |
0 |
0 |
|||||||||||||||||||
07/2026 |
JPY |
691 |
4 |
0 |
0 |
|||||||||||||||||||
07/2026 |
$ |
5,184 |
EUR |
4,454 |
0 |
(95 |
) | |||||||||||||||||
07/2026 |
1,137 |
GBP |
845 |
0 |
(17 |
) | ||||||||||||||||||
08/2026 |
DOP |
75,171 |
$ |
1,264 |
15 |
0 |
||||||||||||||||||
08/2026 |
HKD |
7,089 |
906 |
1 |
0 |
|||||||||||||||||||
09/2026 |
KZT |
25,581 |
51 |
0 |
(1 |
) | ||||||||||||||||||
12/2026 |
COP |
6,524,207 |
1,640 |
0 |
(196 |
) | ||||||||||||||||||
BPS |
07/2026 |
BRL |
18,335 |
3,542 |
0 |
(10 |
) | |||||||||||||||||
07/2026 |
EUR |
5,726 |
6,612 |
70 |
0 |
|||||||||||||||||||
07/2026 |
GBP |
100 |
132 |
0 |
0 |
|||||||||||||||||||
07/2026 |
JPY |
2,337 |
15 |
0 |
0 |
|||||||||||||||||||
42 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
Counterparty |
Settlement Month |
Currency to be Delivered |
Currency to be Received |
Unrealized Appreciation/ (Depreciation) |
||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||
07/2026 |
$ |
3,610 |
BRL |
18,335 |
$ |
0 |
$ |
(58 |
) | |||||||||||||||
07/2026 |
1,898 |
EUR |
1,672 |
12 |
0 |
|||||||||||||||||||
07/2026 |
3,247 |
ZAR |
53,273 |
0 |
0 |
|||||||||||||||||||
08/2026 |
2,771 |
BRL |
14,113 |
0 |
(58 |
) | ||||||||||||||||||
08/2026 |
1,764 |
EUR |
1,546 |
5 |
0 |
|||||||||||||||||||
09/2026 |
COP |
616,361 |
$ |
167 |
0 |
(10 |
) | |||||||||||||||||
09/2026 |
IDR |
134,161 |
7 |
0 |
0 |
|||||||||||||||||||
09/2026 |
$ |
32 |
IDR |
564,420 |
0 |
(1 |
) | |||||||||||||||||
12/2026 |
7 |
135,074 |
0 |
0 |
||||||||||||||||||||
08/2030 |
KWD |
163 |
$ |
550 |
17 |
0 |
||||||||||||||||||
01/2031 |
6,024 |
20,303 |
598 |
0 |
||||||||||||||||||||
06/2031 |
1,204 |
4,051 |
110 |
0 |
||||||||||||||||||||
BRC |
07/2026 |
TRY |
1,077,206 |
22,625 |
0 |
(130 |
) | |||||||||||||||||
07/2026 |
$ |
22,090 |
TRY |
1,056,619 |
229 |
0 |
||||||||||||||||||
07/2026 |
16,198 |
ZAR |
263,103 |
0 |
(161 |
) | ||||||||||||||||||
BSH |
07/2026 |
JPY |
12,386 |
$ |
78 |
2 |
0 |
|||||||||||||||||
09/2026 |
COP |
31,598,902 |
8,098 |
0 |
(983 |
) | ||||||||||||||||||
CBK |
07/2026 |
EUR |
2,688 |
3,135 |
64 |
0 |
||||||||||||||||||
07/2026 |
$ |
1,338 |
EGP |
71,596 |
111 |
0 |
||||||||||||||||||
07/2026 |
4,645 |
EUR |
3,985 |
0 |
(91 |
) | ||||||||||||||||||
07/2026 |
1,209 |
GBP |
901 |
0 |
(14 |
) | ||||||||||||||||||
08/2026 |
EUR |
6,634 |
$ |
7,569 |
0 |
(21 |
) | |||||||||||||||||
09/2026 |
COP |
44,188,022 |
11,879 |
0 |
(820 |
) | ||||||||||||||||||
09/2026 |
IDR |
574,766 |
32 |
0 |
0 |
|||||||||||||||||||
09/2026 |
KZT |
99,213 |
196 |
0 |
(6 |
) | ||||||||||||||||||
09/2026 |
$ |
8 |
IDR |
135,271 |
0 |
0 |
||||||||||||||||||
09/2026 |
12 |
PEN |
40 |
0 |
0 |
|||||||||||||||||||
12/2026 |
PEN |
14,023 |
$ |
4,012 |
0 |
(66 |
) | |||||||||||||||||
12/2026 |
$ |
32 |
IDR |
578,614 |
0 |
0 |
||||||||||||||||||
DUB |
07/2026 |
KZT |
14,097 |
$ |
30 |
0 |
0 |
|||||||||||||||||
07/2026 |
$ |
1,919 |
EGP |
103,585 |
178 |
0 |
||||||||||||||||||
07/2026 |
7,558 |
ZAR |
122,345 |
0 |
(100 |
) | ||||||||||||||||||
08/2026 |
KZT |
107,253 |
$ |
222 |
1 |
0 |
||||||||||||||||||
09/2026 |
IDR |
283,446 |
16 |
0 |
0 |
|||||||||||||||||||
11/2026 |
KZT |
54,224 |
109 |
1 |
0 |
|||||||||||||||||||
12/2026 |
$ |
16 |
IDR |
285,351 |
0 |
0 |
||||||||||||||||||
FAR |
07/2026 |
GBP |
30,586 |
$ |
41,130 |
559 |
0 |
|||||||||||||||||
07/2026 |
$ |
2,897 |
EUR |
2,540 |
5 |
0 |
||||||||||||||||||
07/2026 |
36 |
GBP |
27 |
0 |
0 |
|||||||||||||||||||
07/2026 |
352 |
JPY |
56,999 |
0 |
(2 |
) | ||||||||||||||||||
07/2026 |
10,561 |
ZAR |
174,292 |
62 |
0 |
|||||||||||||||||||
08/2026 |
EUR |
2,540 |
$ |
2,901 |
0 |
(5 |
) | |||||||||||||||||
08/2026 |
GBP |
71 |
94 |
0 |
0 |
|||||||||||||||||||
08/2026 |
JPY |
56,850 |
352 |
2 |
0 |
|||||||||||||||||||
09/2026 |
$ |
46,441 |
BRL |
239,039 |
0 |
(818 |
) | |||||||||||||||||
03/2027 |
COP |
58,251,785 |
$ |
14,335 |
0 |
(1,698 |
) | |||||||||||||||||
GLM |
07/2026 |
BRL |
15,142 |
2,925 |
0 |
(8 |
) | |||||||||||||||||
07/2026 |
DOP |
12,532 |
210 |
0 |
0 |
|||||||||||||||||||
07/2026 |
$ |
3,001 |
BRL |
15,142 |
0 |
(68 |
) | |||||||||||||||||
07/2026 |
513 |
CAD |
730 |
2 |
0 |
|||||||||||||||||||
08/2026 |
CAD |
729 |
$ |
513 |
0 |
(2 |
) | |||||||||||||||||
08/2026 |
DOP |
164,446 |
2,714 |
15 |
(32 |
) | ||||||||||||||||||
08/2026 |
$ |
4,506 |
BRL |
23,026 |
0 |
(80 |
) | |||||||||||||||||
09/2026 |
DOP |
434,252 |
$ |
7,128 |
19 |
(80 |
) | |||||||||||||||||
09/2026 |
$ |
6,000 |
BRL |
30,883 |
0 |
(105 |
) | |||||||||||||||||
09/2026 |
22 |
IDR |
389,894 |
0 |
0 |
|||||||||||||||||||
10/2026 |
DOP |
17,213 |
$ |
289 |
5 |
0 |
||||||||||||||||||
11/2026 |
304,278 |
5,004 |
0 |
(6 |
) | |||||||||||||||||||
12/2026 |
17,861 |
299 |
6 |
0 |
||||||||||||||||||||
JPM |
07/2026 |
AUD |
150 |
107 |
3 |
0 |
||||||||||||||||||
07/2026 |
BRL |
33,554 |
6,520 |
21 |
0 |
|||||||||||||||||||
07/2026 |
KZT |
8,209 |
17 |
0 |
0 |
|||||||||||||||||||
07/2026 |
$ |
6,482 |
BRL |
33,554 |
18 |
0 |
||||||||||||||||||
08/2026 |
HKD |
26,334 |
$ |
3,366 |
3 |
0 |
||||||||||||||||||
09/2026 |
COP |
454,800 |
125 |
0 |
(6 |
) | ||||||||||||||||||
10/2026 |
$ |
6,520 |
BRL |
34,293 |
0 |
(21 |
) | |||||||||||||||||
12/2026 |
242 |
MXN |
4,245 |
0 |
(3 |
) | ||||||||||||||||||
MBC |
07/2026 |
AUD |
1 |
$ |
1 |
0 |
0 |
|||||||||||||||||
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 43 |
Schedule of Investments |
PIMCO Corporate & Income Opportunity Fund |
(Cont.) |
Counterparty |
Settlement Month |
Currency to be Delivered |
Currency to be Received |
Unrealized Appreciation/ (Depreciation) |
||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||
07/2026 |
EUR |
23,508 |
$ |
27,283 |
$ |
422 |
$ |
0 |
||||||||||||||||
07/2026 |
JPY |
11,541 |
73 |
2 |
0 |
|||||||||||||||||||
07/2026 |
$ |
70 |
AUD |
102 |
0 |
0 |
||||||||||||||||||
07/2026 |
7,808 |
EUR |
6,778 |
0 |
(63 |
) | ||||||||||||||||||
08/2026 |
AUD |
102 |
$ |
71 |
0 |
0 |
||||||||||||||||||
08/2026 |
$ |
1,959 |
EGP |
105,998 |
156 |
0 |
||||||||||||||||||
08/2026 |
8,568 |
EUR |
7,503 |
17 |
0 |
|||||||||||||||||||
NGF |
09/2026 |
5 |
IDR |
82,584 |
0 |
0 |
||||||||||||||||||
SCX |
07/2026 |
GBP |
19,214 |
$ |
25,853 |
366 |
0 |
|||||||||||||||||
08/2026 |
HKD |
24,851 |
3,177 |
3 |
0 |
|||||||||||||||||||
09/2026 |
KZT |
8,375 |
17 |
0 |
0 |
|||||||||||||||||||
09/2026 |
$ |
12 |
IDR |
212,414 |
0 |
0 |
||||||||||||||||||
SOG |
07/2026 |
EUR |
285,909 |
$ |
333,525 |
6,845 |
0 |
|||||||||||||||||
07/2026 |
JPY |
30,052 |
189 |
4 |
0 |
|||||||||||||||||||
07/2026 |
$ |
57 |
AUD |
83 |
0 |
0 |
||||||||||||||||||
07/2026 |
342,322 |
EUR |
300,942 |
1,535 |
0 |
|||||||||||||||||||
07/2026 |
38 |
GBP |
29 |
0 |
0 |
|||||||||||||||||||
08/2026 |
AUD |
83 |
$ |
57 |
0 |
0 |
||||||||||||||||||
08/2026 |
EUR |
300,942 |
342,786 |
0 |
(1,532 |
) | ||||||||||||||||||
08/2026 |
GBP |
29 |
38 |
0 |
0 |
|||||||||||||||||||
SSB |
07/2026 |
CAD |
750 |
544 |
15 |
0 |
||||||||||||||||||
07/2026 |
EUR |
2,540 |
2,882 |
0 |
(20 |
) | ||||||||||||||||||
07/2026 |
$ |
5 |
CAD |
7 |
0 |
0 |
||||||||||||||||||
07/2026 |
63,543 |
GBP |
48,071 |
220 |
0 |
|||||||||||||||||||
08/2026 |
CAD |
7 |
$ |
5 |
0 |
0 |
||||||||||||||||||
08/2026 |
GBP |
48,071 |
63,542 |
0 |
(220 |
) | ||||||||||||||||||
UAG |
09/2026 |
COP |
120,047,452 |
31,129 |
0 |
(3,371 |
) | |||||||||||||||||
Total Forward Foreign Currency Contracts |
$ |
11,736 |
$ |
(10,978 |
) | |||||||||||||||||||
SWAP AGREEMENTS:
CREDIT DEFAULT SWAPS ON CORPORATE AND SOVEREIGN ISSUES - SELL PROTECTION
(1)
Counterparty |
Reference Entity |
Fixed Receive Rate |
Payment Frequency |
Maturity Date |
Implied Credit Spread at June 30, 2026 (2) |
Notional Amount (3) |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Swap Agreements, at Value (4) |
|||||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||||
BOA |
Panama Government International Bonds |
1.000 |
% |
Quarterly |
12/20/2028 |
0.486 |
% |
$ |
8,500 |
$ |
(351 |
) |
$ |
456 |
$ |
105 |
$ |
0 |
||||||||||||||||||||
Petroleos Mexicanos |
1.000 |
Quarterly |
06/20/2031 |
2.146 |
15,700 |
(802 |
) |
30 |
0 |
(772 |
) | |||||||||||||||||||||||||||
BPS |
Colombia Government International Bonds |
1.000 |
Quarterly |
06/20/2036 |
2.387 |
3,230 |
(450 |
) |
117 |
0 |
(333 |
) | ||||||||||||||||||||||||||
BRC |
Panama Government International Bonds |
1.000 |
Quarterly |
12/20/2028 |
0.486 |
9,500 |
(392 |
) |
510 |
118 |
0 |
|||||||||||||||||||||||||||
Petroleos Mexicanos |
1.000 |
Quarterly |
12/20/2030 |
2.019 |
400 |
(32 |
) |
16 |
0 |
(16 |
) | |||||||||||||||||||||||||||
Petroleos Mexicanos |
1.000 |
Quarterly |
06/20/2031 |
2.146 |
3,000 |
(170 |
) |
23 |
0 |
(147 |
) | |||||||||||||||||||||||||||
CBK |
Colombia Government International Bonds |
1.000 |
Quarterly |
06/20/2036 |
2.387 |
12,900 |
(1,795 |
) |
466 |
0 |
(1,329 |
) | ||||||||||||||||||||||||||
Israel Government International Bonds |
1.000 |
Quarterly |
06/20/2027 |
0.167 |
2,000 |
(10 |
) |
26 |
16 |
0 |
||||||||||||||||||||||||||||
Petroleos Mexicanos |
1.000 |
Quarterly |
12/20/2030 |
2.019 |
1,700 |
(138 |
) |
70 |
0 |
(68 |
) | |||||||||||||||||||||||||||
DBL |
ION platform Finance SA |
5.000 |
Quarterly |
06/20/2031 |
10.863 |
EUR |
5,100 |
(1,273 |
) |
127 |
0 |
(1,146 |
) | |||||||||||||||||||||||||
DUB |
Eskom « |
4.650 |
Quarterly |
06/30/2029 |
— |
¨ |
$ |
6,783 |
0 |
347 |
347 |
0 |
||||||||||||||||||||||||||
Petroleos Mexicanos « |
4.750 |
Monthly |
07/06/2026 |
— |
¨ |
159 |
0 |
1 |
1 |
0 |
||||||||||||||||||||||||||||
GST |
Equinix, Inc. |
5.000 |
Quarterly |
06/20/2027 |
0.561 |
1,000 |
140 |
(96 |
) |
44 |
0 |
|||||||||||||||||||||||||||
Israel Government International Bonds |
1.000 |
Quarterly |
12/20/2029 |
0.408 |
900 |
(25 |
) |
43 |
18 |
0 |
||||||||||||||||||||||||||||
Nissan Motor Co. Ltd. |
1.000 |
Quarterly |
12/20/2030 |
2.400 |
JPY |
53,300 |
(28 |
) |
9 |
0 |
(19 |
) | ||||||||||||||||||||||||||
JPM |
ION platform Finance SA |
5.000 |
Quarterly |
06/20/2030 |
9.785 |
EUR |
500 |
(84 |
) |
3 |
0 |
(81 |
) | |||||||||||||||||||||||||
ION platform Finance SA |
5.000 |
Quarterly |
06/20/2031 |
10.863 |
2,000 |
(483 |
) |
34 |
0 |
(449 |
) | |||||||||||||||||||||||||||
Israel Government International Bonds |
1.000 |
Quarterly |
12/20/2029 |
0.408 |
$ |
200 |
(6 |
) |
10 |
4 |
0 |
|||||||||||||||||||||||||||
Nissan Motor Co. Ltd. |
1.000 |
Quarterly |
12/20/2030 |
2.400 |
JPY |
53,300 |
(28 |
) |
9 |
0 |
(19 |
) | ||||||||||||||||||||||||||
Petroleos Mexicanos |
1.000 |
Quarterly |
12/20/2030 |
2.019 |
$ |
2,600 |
(203 |
) |
99 |
0 |
(104 |
) | ||||||||||||||||||||||||||
MYC |
Colombia Government International Bonds |
1.000 |
Quarterly |
06/20/2036 |
2.387 |
12,750 |
(1,757 |
) |
443 |
0 |
(1,314 |
) | ||||||||||||||||||||||||||
44 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
Counterparty |
Reference Entity |
Fixed Receive Rate |
Payment Frequency |
Maturity Date |
Implied Credit Spread at June 30, 2026 (2) |
Notional Amount (3) |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Swap Agreements, at Value (4) |
|||||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||||
Israel Government International Bonds |
1.000 |
% |
Quarterly |
12/20/2029 |
0.408 |
% |
$ |
400 |
$ |
(10 |
) |
$ |
18 |
$ |
8 |
$ |
0 |
|||||||||||||||||||||
Petroleos Mexicanos |
1.000 |
Quarterly |
12/20/2028 |
1.573 |
2,600 |
(507 |
) |
473 |
0 |
(34 |
) | |||||||||||||||||||||||||||
$ |
(8,404 |
) |
$ |
3,234 |
$ |
661 |
$ |
(5,831 |
) | |||||||||||||||||||||||||||||
CREDIT DEFAULT SWAPS ON CREDIT INDEXES - SELL PROTECTION
(1)
Counterparty |
Index/Tranches |
Fixed Receive Rate |
Payment Frequency |
Maturity Date |
Notional Amount (3) |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Swap Agreements, at Value (4) |
||||||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||||
BRC |
ABX.HE.AAA.6-2 Index « |
0.110 |
% |
Monthly |
05/25/2046 |
$ |
15,331 |
$ |
(4,216 |
) |
$ |
3,002 |
$ |
0 |
$ |
(1,214 |
) | |||||||||||||||||||||
GST |
ABX.HE.AA.6-1 Index |
0.320 |
Monthly |
07/25/2045 |
5,745 |
(273 |
) |
(209 |
) |
0 |
(482 |
) | ||||||||||||||||||||||||||
ABX.HE.AAA.6-2 Index « |
0.110 |
Monthly |
05/25/2046 |
1,301 |
(354 |
) |
251 |
0 |
(103 |
) | ||||||||||||||||||||||||||||
MEI |
ABX.HE.AAA.6-2 Index « |
0.110 |
Monthly |
05/25/2046 |
17,924 |
(4,934 |
) |
3,515 |
0 |
(1,419 |
) | |||||||||||||||||||||||||||
MYI |
ABX.HE.AAA.6-2 Index « |
0.110 |
Monthly |
05/25/2046 |
19,512 |
0 |
(1,545 |
) |
0 |
(1,545 |
) | |||||||||||||||||||||||||||
$ |
(9,777 |
) |
$ |
5,014 |
$ |
0 |
$ |
(4,763 |
) | |||||||||||||||||||||||||||||
Total Swap Agreements |
$ |
(18,181 |
) |
$ |
8,248 |
$ |
661 |
$ |
(10,594 |
) | ||||||||||||||||||||||||||||
FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged/(received) as of June 30, 2026:
Financial Derivative Assets |
Financial Derivative Liabilities |
|||||||||||||||||||||||||||||||||||||||||||||||
Counterparty |
Forward Foreign Currency Contracts |
Purchased Options |
Swap Agreements |
Total Over the Counter |
Forward Foreign Currency Contracts |
Written Options |
Swap Agreements |
Total Over the Counter |
Net Market Value of OTC Derivatives |
Collateral Pledged/ (Received) |
Net Exposure (5) |
|||||||||||||||||||||||||||||||||||||
AZD |
$ |
1 |
$ |
0 |
$ |
0 |
$ |
1 |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
1 |
$ |
0 |
$ |
1 |
||||||||||||||||||||||||||
BOA |
32 |
0 |
105 |
137 |
(309 |
) |
0 |
(772 |
) |
(1,081 |
) |
(944 |
) |
1,057 |
113 |
|||||||||||||||||||||||||||||||||
BPS |
812 |
0 |
0 |
812 |
(137 |
) |
0 |
(333 |
) |
(470 |
) |
342 |
(200 |
) |
142 |
|||||||||||||||||||||||||||||||||
BRC |
229 |
0 |
118 |
347 |
(291 |
) |
0 |
(1,377 |
) |
(1,668 |
) |
(1,321 |
) |
1,402 |
81 |
|||||||||||||||||||||||||||||||||
BSH |
2 |
0 |
0 |
2 |
(983 |
) |
0 |
0 |
(983 |
) |
(981 |
) |
886 |
(95 |
) | |||||||||||||||||||||||||||||||||
CBK |
175 |
0 |
16 |
191 |
(1,018 |
) |
0 |
(1,397 |
) |
(2,415 |
) |
(2,224 |
) |
2,187 |
(37 |
) | ||||||||||||||||||||||||||||||||
DBL |
0 |
0 |
0 |
0 |
0 |
0 |
(1,146 |
) |
(1,146 |
) |
(1,146 |
) |
0 |
(1,146 |
) | |||||||||||||||||||||||||||||||||
DUB |
180 |
0 |
348 |
528 |
(100 |
) |
0 |
0 |
(100 |
) |
428 |
742 |
1,170 |
|||||||||||||||||||||||||||||||||||
FAR |
628 |
0 |
0 |
628 |
(2,523 |
) |
0 |
0 |
(2,523 |
) |
(1,895 |
) |
1,701 |
(194 |
) | |||||||||||||||||||||||||||||||||
GLM |
47 |
0 |
0 |
47 |
(381 |
) |
0 |
0 |
(381 |
) |
(334 |
) |
373 |
39 |
||||||||||||||||||||||||||||||||||
GST |
0 |
0 |
62 |
62 |
0 |
0 |
(604 |
) |
(604 |
) |
(542 |
) |
547 |
5 |
||||||||||||||||||||||||||||||||||
JPM |
45 |
0 |
4 |
49 |
(30 |
) |
0 |
(653 |
) |
(683 |
) |
(634 |
) |
612 |
(22 |
) | ||||||||||||||||||||||||||||||||
MBC |
597 |
0 |
0 |
597 |
(63 |
) |
0 |
0 |
(63 |
) |
534 |
(390 |
) |
144 |
||||||||||||||||||||||||||||||||||
MEI |
0 |
0 |
0 |
0 |
0 |
0 |
(1,419 |
) |
(1,419 |
) |
(1,419 |
) |
1,536 |
117 |
||||||||||||||||||||||||||||||||||
MYC |
0 |
0 |
8 |
8 |
0 |
0 |
(1,348 |
) |
(1,348 |
) |
(1,340 |
) |
1,347 |
7 |
||||||||||||||||||||||||||||||||||
MYI |
0 |
0 |
0 |
0 |
0 |
0 |
(1,545 |
) |
(1,545 |
) |
(1,545 |
) |
1,079 |
(466 |
) | |||||||||||||||||||||||||||||||||
SCX |
369 |
0 |
0 |
369 |
0 |
0 |
0 |
0 |
369 |
(490 |
) |
(121 |
) | |||||||||||||||||||||||||||||||||||
SOG |
8,384 |
0 |
0 |
8,384 |
(1,532 |
) |
0 |
0 |
(1,532 |
) |
6,852 |
(6,820 |
) |
32 |
||||||||||||||||||||||||||||||||||
SSB |
235 |
0 |
0 |
235 |
(240 |
) |
0 |
0 |
(240 |
) |
(5 |
) |
0 |
(5 |
) | |||||||||||||||||||||||||||||||||
UAG |
0 |
0 |
0 |
0 |
(3,371 |
) |
0 |
0 |
(3,371 |
) |
(3,371 |
) |
3,027 |
(344 |
) | |||||||||||||||||||||||||||||||||
Total Over the Counter |
$ |
11,736 |
$ |
0 |
$ |
661 |
$ |
12,397 |
$ |
(10,978 |
) |
$ |
0 |
$ |
(10,594 |
) |
$ |
(21,572 |
) |
|||||||||||||||||||||||||||||
(r) |
Securities with an aggregate market value of $16,496 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of June 30, 2026. |
¨ |
Implied credit spread is not available due to significant unobservable inputs being used in the fair valuation. See Note 3, Investment Valuation and Fair Value Measurements, in the Notes to Financial Statements for more information. |
(1) |
If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
(2) |
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
(3) |
The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 45 |
Schedule of Investments |
PIMCO Corporate & Income Opportunity Fund |
(Cont.) |
(4) |
The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the underlying referenced instrument’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
(5) |
Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information. |
FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS
The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 7, Principal and Other Risks, in the Notes to Financial Statements on risks of the Fund.
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of June 30, 2026:
Derivatives not accounted for as hedging instruments |
||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Exchange Contracts |
Interest Rate Contracts |
Total |
|||||||||||||||||||
Financial Derivative Instruments - Assets |
||||||||||||||||||||||||
Exchange-traded or centrally cleared |
||||||||||||||||||||||||
Swap Agreements |
$ |
0 |
$ |
77 |
$ |
0 |
$ |
0 |
$ |
3,948 |
$ |
4,025 |
||||||||||||
Over the counter |
||||||||||||||||||||||||
Forward Foreign Currency Contracts |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
11,736 |
$ |
0 |
$ |
11,736 |
||||||||||||
Swap Agreements |
0 |
661 |
0 |
0 |
0 |
661 |
||||||||||||||||||
$ |
0 |
$ |
661 |
$ |
0 |
$ |
11,736 |
$ |
0 |
$ |
12,397 |
|||||||||||||
$ |
0 |
$ |
738 |
$ |
0 |
$ |
11,736 |
$ |
3,948 |
$ |
16,422 |
|||||||||||||
Financial Derivative Instruments - Liabilities |
||||||||||||||||||||||||
Exchange-traded or centrally cleared |
||||||||||||||||||||||||
Swap Agreements |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
6,808 |
$ |
6,808 |
||||||||||||
Over the counter |
||||||||||||||||||||||||
Forward Foreign Currency Contracts |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
10,978 |
$ |
0 |
$ |
10,978 |
||||||||||||
Swap Agreements |
0 |
10,594 |
0 |
0 |
0 |
10,594 |
||||||||||||||||||
$ |
0 |
$ |
10,594 |
$ |
0 |
$ |
10,978 |
$ |
0 |
$ |
21,572 |
|||||||||||||
$ |
0 |
$ |
10,594 |
$ |
0 |
$ |
10,978 |
$ |
6,808 |
$ |
28,380 |
|||||||||||||
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended June 30, 2026:
Derivatives not accounted for as hedging instruments |
||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Exchange Contracts |
Interest Rate Contracts |
Total |
|||||||||||||||||||
Net Realized Gain (Loss) on Financial Derivative Instruments |
||||||||||||||||||||||||
Exchange-traded or centrally cleared |
||||||||||||||||||||||||
Futures |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
(172 |
) |
$ |
(172 |
) | ||||||||||
Swap Agreements |
0 |
1,835 |
0 |
0 |
(553 |
) |
1,282 |
|||||||||||||||||
$ |
0 |
$ |
1,835 |
$ |
0 |
$ |
0 |
$ |
(725 |
) |
$ |
1,110 |
||||||||||||
Over the counter |
||||||||||||||||||||||||
Forward Foreign Currency Contracts |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
(3,332 |
) |
$ |
0 |
$ |
(3,332 |
) | ||||||||||
Written Options |
0 |
0 |
0 |
320 |
0 |
320 |
||||||||||||||||||
Swap Agreements |
0 |
6,059 |
0 |
0 |
0 |
6,059 |
||||||||||||||||||
$ |
0 |
$ |
6,059 |
$ |
0 |
$ |
(3,012 |
) |
$ |
0 |
$ |
3,047 |
||||||||||||
$ |
0 |
$ |
7,894 |
$ |
0 |
$ |
(3,012 |
) |
$ |
(725 |
) |
$ |
4,157 |
|||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
||||||||||||||||||||||||
Exchange-traded or centrally cleared |
||||||||||||||||||||||||
Swap Agreements |
$ |
0 |
$ |
(50 |
) |
$ |
0 |
$ |
0 |
$ |
(36,562 |
) |
$ |
(36,612 |
) | |||||||||
Over the counter |
||||||||||||||||||||||||
Forward Foreign Currency Contracts |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
12,459 |
$ |
0 |
$ |
12,459 |
||||||||||||
Swap Agreements |
0 |
(2,418 |
) |
0 |
0 |
0 |
(2,418 |
) | ||||||||||||||||
$ |
0 |
$ |
(2,418 |
) |
$ |
0 |
$ |
12,459 |
$ |
0 |
$ |
10,041 |
||||||||||||
$ |
0 |
$ |
(2,468 |
) |
$ |
0 |
$ |
12,459 |
$ |
(36,562 |
) |
$ |
(26,571 |
) | ||||||||||
46 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2026 in valuing the Fund’s assets and liabilities:
Category and Subcategory |
Level 1 |
Level 2 |
Level 3 |
Fair Value at 06/30/2026 |
||||||||||||
Investments in Securities, at Value |
||||||||||||||||
Loan Participations and Assignments |
$ |
0 |
$ |
718,498 |
$ |
254,981 |
$ |
973,479 |
||||||||
Corporate Bonds & Notes |
||||||||||||||||
Banking & Finance |
0 |
207,156 |
2,400 |
209,556 |
||||||||||||
Industrials |
0 |
626,781 |
49,412 |
676,193 |
||||||||||||
Utilities |
0 |
67,305 |
403 |
67,708 |
||||||||||||
Convertible Bonds & Notes |
||||||||||||||||
Banking & Finance |
0 |
30 |
0 |
30 |
||||||||||||
Industrials |
0 |
57,928 |
0 |
57,928 |
||||||||||||
Municipal Bonds & Notes |
||||||||||||||||
California |
0 |
1,722 |
0 |
1,722 |
||||||||||||
Michigan |
0 |
5,228 |
0 |
5,228 |
||||||||||||
Pennsylvania |
0 |
4,539 |
0 |
4,539 |
||||||||||||
West Virginia |
0 |
7,886 |
0 |
7,886 |
||||||||||||
U.S. Government Agencies |
0 |
127,275 |
9,489 |
136,764 |
||||||||||||
U.S. Treasury Obligations |
0 |
1,274 |
0 |
1,274 |
||||||||||||
Non-Agency Mortgage-Backed Securities |
0 |
174,599 |
0 |
174,599 |
||||||||||||
Asset-Backed Securities |
||||||||||||||||
Automobile ABS Other |
0 |
6,172 |
0 |
6,172 |
||||||||||||
Home Equity Other |
0 |
93,212 |
0 |
93,212 |
||||||||||||
Whole Loan Collateral |
0 |
34,722 |
0 |
34,722 |
||||||||||||
Other ABS |
0 |
19,666 |
5,119 |
24,785 |
||||||||||||
Sovereign Issues |
0 |
300,348 |
0 |
300,348 |
||||||||||||
Common Stocks |
||||||||||||||||
Communication Services |
7,231 |
0 |
7,753 |
14,984 |
||||||||||||
Consumer Discretionary |
0 |
0 |
82 |
82 |
||||||||||||
Financials |
26,753 |
204 |
0 |
26,957 |
||||||||||||
Industrials |
10 |
0 |
30,461 |
30,471 |
||||||||||||
Real Estate |
739 |
0 |
0 |
739 |
||||||||||||
Warrants |
||||||||||||||||
Communication Services |
0 |
0 |
3,161 |
3,161 |
||||||||||||
Preferred Securities |
||||||||||||||||
Banking & Finance |
0 |
5,588 |
29,332 |
34,920 |
||||||||||||
Industrials |
0 |
6,200 |
6,279 |
12,479 |
||||||||||||
Real Estate Investment Trusts |
||||||||||||||||
Real Estate |
5,582 |
0 |
0 |
5,582 |
||||||||||||
Category and Subcategory |
Level 1 |
Level 2 |
Level 3 |
Fair Value at 06/30/2026 |
||||||||||||
Short-Term Instruments |
||||||||||||||||
Mutual Funds |
$ |
4,247 |
$ |
0 |
$ |
0 |
$ |
4,247 |
||||||||
Egypt Treasury Bills |
0 |
4,836 |
0 |
4,836 |
||||||||||||
Nigeria Treasury Bills |
0 |
54,015 |
0 |
54,015 |
||||||||||||
U.S. Treasury Bills |
0 |
18,419 |
0 |
18,419 |
||||||||||||
$ |
44,562 |
$ |
2,543,603 |
$ |
398,872 |
$ |
2,987,037 |
|||||||||
Investments in Affiliates, at Value |
||||||||||||||||
Common Stocks |
||||||||||||||||
Affiliated Investments |
0 |
16,243 |
0 |
16,243 |
||||||||||||
Short-Term Instruments |
||||||||||||||||
Central Funds Used for Cash Management Purposes |
196,143 |
0 |
0 |
196,143 |
||||||||||||
$ |
196,143 |
$ |
16,243 |
$ |
0 |
$ |
212,386 |
|||||||||
Total Investments |
$ |
240,705 |
$ |
2,559,846 |
$ |
398,872 |
$ |
3,199,423 |
||||||||
Financial Derivative Instruments - Assets |
||||||||||||||||
Exchange-traded or centrally cleared |
0 |
4,025 |
0 |
4,025 |
||||||||||||
Over the counter |
0 |
12,049 |
348 |
12,397 |
||||||||||||
$ |
0 |
$ |
16,074 |
$ |
348 |
$ |
16,422 |
|||||||||
Financial Derivative Instruments - Liabilities |
||||||||||||||||
Exchange-traded or centrally cleared |
0 |
(6,808 |
) |
0 |
(6,808 |
) | ||||||||||
Over the counter |
0 |
(16,809 |
) |
(4,763 |
) |
(21,572 |
) | |||||||||
$ |
0 |
$ |
(23,617 |
) |
$ |
(4,763 |
) |
$ |
(28,380 |
) | ||||||
Total Financial Derivative Instruments |
$ |
0 |
$ |
(7,543 |
) |
$ |
(4,415 |
) |
$ |
(11,958 |
) | |||||
Totals |
$ |
240,705 |
$ |
2,552,303 |
$ |
394,457 |
$ |
3,187,465 |
||||||||
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Fund during the period ended June 30, 2026:
Category and Subcategory |
Beginning Balance at 06/30/2025 |
Net Purchases (1) |
Net Sales/ Settlements (1) |
Accrued Discounts/ (Premiums) |
Realized Gain/(Loss) |
Net Change in Unrealized Appreciation/ (Depreciation) (2) |
Transfers into Level 3 |
Transfers out of Level 3 |
Ending Balance at 06/30/2026 |
Net Change in Unrealized Appreciation/ (Depreciation) on Investments Held at 06/30/2026 (2) |
||||||||||||||||||||||||||||||
Investments in Securities, at Value |
||||||||||||||||||||||||||||||||||||||||
Loan Participations and Assignments |
$ |
160,420 |
$ |
69,176 |
$ |
(72,180 |
) |
$ |
698 |
$ |
326 |
$ |
(5,191 |
) |
$ |
101,732 |
$ |
0 |
$ |
254,981 |
$ |
(1,152 |
) | |||||||||||||||||
Corporate Bonds & Notes |
||||||||||||||||||||||||||||||||||||||||
Banking & Finance |
862 |
2,447 |
(6 |
) |
0 |
0 |
6 |
0 |
(909 |
) |
2,400 |
(47 |
) | |||||||||||||||||||||||||||
Industrials |
44,914 |
3,965 |
(4,206 |
) |
93 |
0 |
4,646 |
0 |
0 |
49,412 |
3,540 |
|||||||||||||||||||||||||||||
Utilities |
0 |
307 |
0 |
(7 |
) |
0 |
103 |
0 |
0 |
403 |
104 |
|||||||||||||||||||||||||||||
U.S. Government Agencies |
8,490 |
0 |
(256 |
) |
196 |
84 |
975 |
0 |
0 |
9,489 |
969 |
|||||||||||||||||||||||||||||
Asset-Backed Securities |
||||||||||||||||||||||||||||||||||||||||
Other ABS |
6,139 |
0 |
0 |
8 |
(2,226 |
) |
1,151 |
47 |
0 |
5,119 |
(817 |
) | ||||||||||||||||||||||||||||
Common Stocks |
||||||||||||||||||||||||||||||||||||||||
Communication Services |
23,486 |
0 |
(20,869 |
) |
0 |
11,074 |
(5,938 |
) |
0 |
0 |
7,753 |
7,422 |
||||||||||||||||||||||||||||
Consumer Discretionary |
82 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
82 |
0 |
||||||||||||||||||||||||||||||
Financials |
15,885 |
0 |
(16,276 |
) |
0 |
(15,135 |
) |
15,526 |
0 |
0 |
0 |
0 |
||||||||||||||||||||||||||||
Health Care |
57,417 |
0 |
(51,345 |
) |
0 |
(1,796 |
) |
(4,276 |
) |
0 |
0 |
0 |
0 |
|||||||||||||||||||||||||||
Industrials |
26,133 |
67 |
0 |
0 |
0 |
4,261 |
0 |
0 |
30,461 |
4,261 |
||||||||||||||||||||||||||||||
Real Estate (3) |
35 |
0 |
0 |
0 |
0 |
698 |
0 |
(733 |
) |
0 |
0 |
|||||||||||||||||||||||||||||
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 47 |
Schedule of Investments |
PIMCO Corporate & Income Opportunity Fund |
(Cont.) |
Category and Subcategory |
Beginning Balance at 06/30/2025 |
Net Purchases (1) |
Net Sales/ Settlements (1) |
Accrued Discounts/ (Premiums) |
Realized Gain/(Loss) |
Net Change in Unrealized Appreciation/ (Depreciation) (2) |
Transfers into Level 3 |
Transfers out of Level 3 |
Ending Balance at 06/30/2026 |
Net Change in Unrealized Appreciation/ (Depreciation) on Investments Held at 06/30/2026 (2) |
||||||||||||||||||||||||||||||
Warrants |
||||||||||||||||||||||||||||||||||||||||
Communication Services |
$ |
4,604 |
$ |
1,681 |
$ |
(4,150 |
) |
$ |
0 |
$ |
1,096 |
$ |
(70 |
) |
$ |
0 |
$ |
0 |
$ |
3,161 |
$ |
1,481 |
||||||||||||||||||
Financials |
3 |
0 |
(16 |
) |
0 |
(10,148 |
) |
10,161 |
0 |
0 |
0 |
0 |
||||||||||||||||||||||||||||
Preferred Securities |
||||||||||||||||||||||||||||||||||||||||
Banking & Finance |
0 |
28,296 |
0 |
0 |
0 |
1,036 |
0 |
0 |
29,332 |
1,036 |
||||||||||||||||||||||||||||||
Industrials |
7,061 |
871 |
0 |
0 |
0 |
(1,653 |
) |
0 |
0 |
6,279 |
(1,652 |
) | ||||||||||||||||||||||||||||
$ |
355,531 |
$ |
106,810 |
$ |
(169,304 |
) |
$ |
988 |
$ |
(16,725 |
) |
$ |
21,435 |
$ |
101,779 |
$ |
(1,642 |
) |
$ |
398,872 |
$ |
15,145 |
||||||||||||||||||
Financial Derivative Instruments |
||||||||||||||||||||||||||||||||||||||||
Over the counter |
$ |
450 |
$ |
0 |
$ |
(6 |
) |
$ |
0 |
$ |
0 |
$ |
(96 |
) |
$ |
0 |
$ |
0 |
$ |
348 |
$ |
(91 |
) | |||||||||||||||||
Financial Derivative Instruments |
||||||||||||||||||||||||||||||||||||||||
Over the counter |
$ |
(5,264 |
) |
$ |
2,755 |
$ |
(153 |
) |
$ |
0 |
$ |
3,767 |
$ |
(5,868 |
) |
$ |
0 |
$ |
0 |
$ |
(4,763 |
) |
$ |
(1,630 |
) | |||||||||||||||
Totals |
$ |
350,717 |
$ |
109,565 |
$ |
(169,463 |
) |
$ |
988 |
$ |
(12,958 |
) |
$ |
15,471 |
$ |
101,779 |
$ |
(1,642 |
) |
$ |
394,457 |
$ |
13,424 |
|||||||||||||||||
The following is a summary of significant unobservable inputs used in the fair valuations of assets and liabilities categorized within Level 3 of the fair value hierarchy:
Category and Subcategory |
Ending Balance at 06/30/2026 |
Valuation Technique |
Unobservable Inputs |
(% Unless Noted Otherwise) |
||||||||||||||||
Input Value(s) |
Weighted Average |
|||||||||||||||||||
Investments in Securities, at Value |
||||||||||||||||||||
Loan Participations and Assignments |
$ |
110,806 |
Discounted Cash Flow |
Discount Rate |
6.790-11.323 |
8.639 |
||||||||||||||
11,012 |
Indicative Market Quotation |
Broker Quote |
101.250 |
— |
||||||||||||||||
2,285 |
Recent Transaction |
Commitment |
99.000-99.500 |
99.348 |
||||||||||||||||
7,722 |
Recent Transaction |
Purchase Price |
99.000 |
— |
||||||||||||||||
10,357 |
Recent Transaction |
Purchase Price |
$ |
100.000 |
— |
|||||||||||||||
112,799 |
Third Party Vendor |
Broker Quote |
57.500-126.000 |
105.595 |
||||||||||||||||
Corporate Bonds & Notes |
||||||||||||||||||||
Banking & Finance |
2,057 |
Discounted Cash Flow |
Discount Rate |
6.340 |
— |
|||||||||||||||
343 |
Recent Transaction |
Purchase Price |
EUR |
100.000 |
— |
|||||||||||||||
Industrials |
49,412 |
Comparable Companies / Discounted Cash Flow |
EBITDA Multiple/ Discount Rate X/% |
13.000/10.250 |
— |
|||||||||||||||
Utilities |
403 |
Indicative Market Quotation |
Broker Quote |
EUR |
13.500 |
— |
||||||||||||||
U.S. Government Agencies |
9,489 |
Discounted Cash Flow |
Discount Rate |
9.827 |
— |
|||||||||||||||
Asset-Backed Securities |
||||||||||||||||||||
Other ABS |
5,072 |
Discounted Cash Flow |
Discount Rate |
12.000-20.000 |
18.560 |
|||||||||||||||
47 |
Expected Recovery |
Price |
5.880 |
— |
||||||||||||||||
Common Stocks |
||||||||||||||||||||
Communication Services |
6,965 |
Indicative Market Quotation |
Broker Quote |
$ |
15.125 |
— |
||||||||||||||
788 |
Reference Instrument |
Liquidity Discount |
14.000 |
— |
||||||||||||||||
Consumer Discretionary |
82 |
Expected Recovery |
Price |
$ |
0.000 |
— |
||||||||||||||
Industrials |
27,751 |
Comparable Companies / Discounted Cash Flow |
EBITDA Multiple/ Discount Rate X/% |
13.000/10.250 |
— |
|||||||||||||||
206 |
Indicative Market Quotation / Recent Transaction |
Broker Quote / Purchase Price $/$ |
3.250/2.000 |
— |
||||||||||||||||
2,504 |
Indicative Market Quotation |
Broker Quote |
$ |
0.656-22.917 |
22.656 |
|||||||||||||||
Warrants |
||||||||||||||||||||
Communication Services |
3,161 |
Other Valuation Techniques (4) |
— |
— |
— |
|||||||||||||||
Preferred Securities |
||||||||||||||||||||
Banking & Finance |
10,070 |
Discounted Cash Flow |
Discount Rate |
11.630 |
— |
|||||||||||||||
19,262 |
Recent Transaction |
Purchase Price |
$ |
1.000 |
— |
|||||||||||||||
Industrials |
725 |
Comparable Companies |
Revenue/ EBITDA Multiple X |
4.625/18.000 |
— |
|||||||||||||||
5,554 |
Discounted Cash Flow |
Discount Rate |
26.880 |
— |
||||||||||||||||
Financial Derivative Instruments |
||||||||||||||||||||
Over the counter |
348 |
Indicative Market Quotation |
Broker Quote |
0.053-5.109 |
5.100 |
|||||||||||||||
Financial Derivative Instruments |
||||||||||||||||||||
Over the counter |
(4,763 |
) |
Indicative Market Quotation |
Broker Quote |
91.500-92.000 |
91.950 |
||||||||||||||
Total |
$ |
394,457 |
||||||||||||||||||
(1) |
Net Purchases and Settlements for Financial Derivative Instruments may include payments made or received upon entering into swap agreements to compensate for differences between the stated terms of the swap agreement and prevailing market conditions. |
(2) |
Any difference between Net Change in Unrealized Appreciation/(Depreciation) and Net Change in Unrealized Appreciation/(Depreciation) on Investments Held at June 30, 2026 may be due to an investment no longer held or categorized as Level 3 at period end. |
(3) |
Sector type updated from Financials to Real Estate since prior fiscal year end. |
(4) |
Includes valuation techniques not defined in the Notes to Financial Statements as securities valued using such techniques are not considered significant to the Fund. |
48 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
Schedule of Investments |
PIMCO Corporate & Income Strategy Fund |
June 30, 2026 |
(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
INVESTMENTS IN SECURITIES 114.2% |
||||||||||||
LOAN PARTICIPATIONS AND ASSIGNMENTS 35.9% |
||||||||||||
ADI Global Distribution Funding LLC |
||||||||||||
TBD% due 06/17/2033 |
$ |
300 |
$ |
301 |
||||||||
Aligned Data Centers International LP |
||||||||||||
7.164% due 05/16/2028 «~ |
3,690 |
3,690 |
||||||||||
Altice France SA |
||||||||||||
7.798% (TSFR3M + 3.673%) due 04/30/2028 ~ |
393 |
395 |
||||||||||
8.735% - 8.736% (TSFR3M + 3.673%) due 10/30/2028 ~ |
1,475 |
1,476 |
||||||||||
9.048% (TSFR3M + 3.653%) due 05/14/2029 ~ |
6,980 |
7,012 |
||||||||||
9.079% (EUR003M + 2.240%) due 05/30/2031 ~ |
EUR |
75 |
87 |
|||||||||
10.548% (TSFR3M + 3.673%) due 05/31/2031 ~ |
$ |
5,551 |
5,679 |
|||||||||
Bausch Health Cos., Inc. |
||||||||||||
9.894% (TSFR1M + 3.644%) due 10/08/2030 ~ |
11,340 |
11,023 |
||||||||||
BDO USA PC |
||||||||||||
8.121% (TSFR1M + 3.621%) due 08/31/2028 «~ |
183 |
181 |
||||||||||
8.648% (TSFR3M + 3.643%) due 08/31/2028 «~ |
2,388 |
2,385 |
||||||||||
Central Parent, Inc. |
||||||||||||
6.982% (TSFR3M + 3.732%) due 07/06/2029 ~ |
12,222 |
8,067 |
||||||||||
Clover Holdings 2 LLC |
||||||||||||
TBD% - 4.000% due 12/10/2029 «µ |
803 |
741 |
||||||||||
7.375% (TSFR1M + 3.633%) due 12/09/2031 ~ |
818 |
783 |
||||||||||
Coreweave Compute Acquisition Co. IV LLC |
||||||||||||
9.661% - 9.732% (TSFR3M + 3.666%) due 05/16/2029 «~ |
4,060 |
4,186 |
||||||||||
Crowe LLP |
||||||||||||
TBD% due 05/13/2033 «µ |
3,200 |
3,170 |
||||||||||
TBD% - 0.500% due 05/13/2033 «µ |
300 |
297 |
||||||||||
Cyberswift U.S. Finco LLC |
||||||||||||
7.427% (TSFR3M + 3.677%) due 10/08/2032 ~ |
1,800 |
1,798 |
||||||||||
Databricks, Inc. |
||||||||||||
TBD% - 1.000% due 01/05/2032 µ |
399 |
399 |
||||||||||
8.114% (TSFR1M + 3.612%) due 01/05/2032 ~ |
1,801 |
1,799 |
||||||||||
Dialysis Holdco LLC |
||||||||||||
9.644% (TSFR1M + 3.644%) due 11/26/2030 «~ |
8,240 |
8,374 |
||||||||||
Discovery Global Holdings, Inc. |
||||||||||||
6.144% (TSFR1M + 3.644%) due 06/03/2033 ~ |
6,571 |
6,581 |
||||||||||
Dun & Bradstreet Corp. |
||||||||||||
TBD% - 9.121% (TSFR1M + 3.621%) due 08/26/2032 «~µ |
174 |
172 |
||||||||||
9.153% (TSFR1M + 3.644%) due 08/26/2032 «~ |
1,728 |
1,629 |
||||||||||
Envalior Finance GmbH |
||||||||||||
7.650% (EUR003M + 2.150%) due 03/29/2030 ~ |
EUR |
1,900 |
2,021 |
|||||||||
Finastra USA, Inc. |
||||||||||||
7.746% (TSFR6M + 3.751%) due 09/15/2032 ~ |
$ |
11,436 |
10,573 |
|||||||||
10.751% (TSFR6M + 3.751%) due 09/15/2033 «~ |
3,528 |
3,105 |
||||||||||
Forward Air Corp. |
||||||||||||
8.163% (TSFR3M + 3.663%) due 12/19/2030 ~ |
10,673 |
10,092 |
||||||||||
Gaia Purchaser, Inc. |
||||||||||||
TBD% due 06/25/2033 « |
500 |
501 |
||||||||||
Galaxy U.S. Opco, Inc. (5.663% Cash and 3.250% PIK) |
||||||||||||
8.913% (TSFR3M + 3.663%) due 07/31/2030 ~(c) |
5,976 |
5,495 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
Gateway Casinos & Entertainment Ltd. |
||||||||||||
9.918% (TSFR3M + 3.668%) due 12/18/2030 ~ |
$ |
5,186 |
$ |
5,176 |
||||||||
Ineos U.S. Finance LLC |
||||||||||||
6.894% (TSFR1M + 3.644%) due 02/18/2030 ~ |
5,051 |
4,665 |
||||||||||
ION Platform Finance U.S., Inc. |
||||||||||||
7.482% (TSFR3M + 3.732%) due 10/07/2032 ~ |
4,291 |
3,106 |
||||||||||
Ivanti Software, Inc. |
||||||||||||
TBD% - 9.414% (TSFR3M + 3.658%) due 06/01/2029 ~µ |
1,253 |
1,217 |
||||||||||
8.414% (TSFR3M + 3.658%) due 06/01/2029 ~ |
9,378 |
4,150 |
||||||||||
J&J Ventures Gaming LLC |
||||||||||||
8.758% (TSFR1M + 3.644%) due 04/26/2028 «~ |
1,140 |
1,140 |
||||||||||
Lealand Finance Co. BV |
||||||||||||
6.758% (TSFR1M + 3.644%) due 06/30/2027 ~ |
75 |
73 |
||||||||||
Lealand Finance Co. BV (4.758% Cash and 3.000% PIK) |
||||||||||||
7.758% (TSFR1M + 3.644%) due 12/31/2027 ~(c) |
424 |
410 |
||||||||||
Magenta Security Holdings LLC |
||||||||||||
9.913% (TSFR3M + 3.663%) due 07/27/2028 ~ |
113 |
112 |
||||||||||
10.173% (TSFR3M + 3.663%) due 07/27/2028 ~ |
552 |
95 |
||||||||||
10.673% (TSFR3M + 3.663%) due 07/27/2028 ~ |
119 |
80 |
||||||||||
10.923% (TSFR3M + 3.663%) due 07/27/2028 ~ |
155 |
59 |
||||||||||
McAfee LLC |
||||||||||||
6.644% (TSFR1M + 3.644%) due 03/01/2029 ~ |
3,176 |
2,831 |
||||||||||
Mercury Aggregator LP |
||||||||||||
TBD% due 04/03/2027 « |
2,172 |
0 |
||||||||||
MH Sub I LLC |
||||||||||||
7.894% (TSFR1M + 3.644%) due 12/31/2031 ~ |
2,069 |
1,798 |
||||||||||
MPH Acquisition Holdings LLC |
||||||||||||
7.413% (TSFR3M + 3.663%) due 12/31/2030 ~ |
5,006 |
5,023 |
||||||||||
8.263% (TSFR3M + 3.663%) due 12/31/2030 ~ |
10,392 |
9,176 |
||||||||||
Newfold Digital Holdings Group, Inc. |
||||||||||||
7.214% (TSFR1M + 3.612%) due 04/30/2029 ~ |
3,192 |
2,381 |
||||||||||
9.364% (TSFR1M + 3.612%) due 04/30/2029 ~ |
223 |
181 |
||||||||||
Nscale AS |
||||||||||||
TBD% - 8.664% (TSFR3M + 3.670%) due 08/23/2032 «~µ |
2,981 |
2,981 |
||||||||||
Peraton Corp. |
||||||||||||
7.513% (TSFR3M + 3.663%) due 02/01/2028 ~ |
21,892 |
19,812 |
||||||||||
11.516% (TSFR3M + 3.666%) due 02/01/2029 ~ |
2,164 |
1,471 |
||||||||||
Polaris Newco LLC |
||||||||||||
6.150% (EUR003M + 2.150%) due 06/02/2028 ~ |
EUR |
5,259 |
5,221 |
|||||||||
7.925% (TSFR3M + 3.663%) due 06/02/2028 ~ |
$ |
9,627 |
8,391 |
|||||||||
Poseidon Bidco SASU |
||||||||||||
7.504% due 03/13/2030 |
EUR |
2,400 |
795 |
|||||||||
Promotora de Informaciones SA |
||||||||||||
7.674% (EUR003M + 2.168%) due 12/31/2029 «~ |
20,771 |
23,199 |
||||||||||
QXO, Inc. |
||||||||||||
TBD% due 04/30/2032 |
$ |
1,600 |
1,598 |
|||||||||
SCUR-Alpha 1503 GmbH |
||||||||||||
9.163% (TSFR3M + 3.663%) due 04/01/2030 ~ |
7,867 |
6,871 |
||||||||||
Softbank Vision Fund II |
||||||||||||
7.382% (TSFR3M + 3.732%) due 04/25/2029 «~ |
5,690 |
5,789 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
Spruce Bidco II, Inc. |
||||||||||||
TBD% - 8.461% (TSFR6M + 3.621%) due 01/30/2032 «~µ |
$ |
275 |
$ |
275 |
||||||||
5.977% (JY0003M + 0.000%) due 01/30/2032 «~ |
JPY |
23,382 |
145 |
|||||||||
7.047% (CDOR06 + 0.000%) due 01/30/2032 «~ |
CAD |
219 |
155 |
|||||||||
8.413% (TSFR3M + 3.663%) due 01/30/2032 «~ |
$ |
1,208 |
1,216 |
|||||||||
Steenbok Lux Finco 2 SARL |
||||||||||||
TBD% due 12/31/2028 |
EUR |
16,697 |
7,727 |
|||||||||
Stepstone Group Midco 2 GmbH |
||||||||||||
6.885% (EUR006M + 2.459%) due 04/26/2032 ~ |
8,300 |
7,785 |
||||||||||
8.176% - 8.179% (TSFR6M + 3.679%) due 12/19/2031 ~ |
$ |
4,489 |
3,639 |
|||||||||
Stonepeak Bayou Holdings LP |
||||||||||||
6.482% (TSFR3M + 3.732%) due 10/01/2032 ~ |
2,594 |
2,591 |
||||||||||
Stormlight |
||||||||||||
8.370% due 05/13/2030 «~ |
3,590 |
3,590 |
||||||||||
Subcalidora 2 |
||||||||||||
8.041% (EUR003M + 2.291%) due 08/14/2029 «~ |
EUR |
6,500 |
7,387 |
|||||||||
Syniverse Holdings, Inc. |
||||||||||||
10.732% (TSFR3M + 3.732%) due 05/13/2027 ~ |
$ |
15,543 |
13,555 |
|||||||||
TransDigm, Inc. |
||||||||||||
6.144% (TSFR1M + 3.644%) due 02/13/2033 ~ |
2,200 |
2,202 |
||||||||||
U.S. Renal Care, Inc. |
||||||||||||
8.758% (TSFR1M + 3.644%) due 06/28/2028 ~ |
21,089 |
20,791 |
||||||||||
Unicorn Bay |
||||||||||||
13.000% due 12/31/2026 « |
HKD |
31,031 |
4,006 |
|||||||||
Upfield BV |
||||||||||||
TBD% due 10/31/2030 |
EUR |
5,358 |
5,887 |
|||||||||
8.980% due 10/31/2030 ~ |
GBP |
4,300 |
5,464 |
|||||||||
Virgin Media Bristol LLC |
||||||||||||
6.967% (TSFR6M + 3.692%) due 03/31/2031 ~ |
$ |
1,100 |
979 |
|||||||||
6.990% (TSFR1M + 3.633%) due 01/31/2029 ~ |
3,200 |
3,074 |
||||||||||
Westmoreland Coal Co. |
||||||||||||
8.000% due 03/15/2029 « |
1,390 |
799 |
||||||||||
Worthington Steel, Inc. |
||||||||||||
7.620% - 7.621% (TSFR1M + 3.624%) due 06/01/2033 ~ |
1,300 |
1,299 |
||||||||||
Total Loan Participations and Assignments (Cost $339,841) |
312,379 |
|||||||||||
CORPORATE BONDS & NOTES 37.8% |
||||||||||||
BANKING & FINANCE 7.7% |
||||||||||||
Alamo Re Ltd. |
||||||||||||
14.289% (T-BILL 1MO + 10.500%) due 06/07/2028 ~ |
900 |
899 |
||||||||||
Antares Holdings LP |
||||||||||||
6.350% due 10/23/2029 (n) |
500 |
498 |
||||||||||
Armor Holdco, Inc. |
||||||||||||
8.500% due 11/15/2029 (n) |
3,400 |
3,422 |
||||||||||
Mercantil del Norte SA |
||||||||||||
8.000% due 01/24/2033 •(j)(k)(n) |
2,000 |
2,005 |
||||||||||
8.450% due 06/24/2036 •(j)(k) |
2,000 |
2,005 |
||||||||||
Blue Owl Capital Corp. |
||||||||||||
6.450% due 09/15/2028 (n) |
800 |
811 |
||||||||||
BOI Finance BV |
||||||||||||
7.500% due 02/16/2027 (n) |
EUR |
2,300 |
2,681 |
|||||||||
Cape Lookout Re Ltd. |
||||||||||||
8.770% (FHMMUSTF + 5.250%) due 03/21/2033 ~ |
$ |
250 |
248 |
|||||||||
9.520% (FHMMUSTF + 6.000%) due 03/21/2033 ~ |
250 |
250 |
||||||||||
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 49 |
Schedule of Investments |
PIMCO Corporate & Income Strategy Fund |
(Cont.) |
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
12.226% (GSMMUSTF + 8.702%) due 04/05/2027 ~ |
$ |
800 |
$ |
799 |
||||||||
CI Financial Corp. |
||||||||||||
7.500% due 05/30/2029 (n) |
1,100 |
1,153 |
||||||||||
Commonwealth RE Ltd. |
||||||||||||
7.407% (JMMMUSTF + 3.857%) due 07/08/2030 ~ |
3,300 |
3,301 |
||||||||||
Credicorp Capital Sociedad Titulizadora SA |
||||||||||||
9.700% due 03/05/2045 |
PEN |
1,000 |
313 |
|||||||||
Credit Suisse AG AT1 Claim |
$ |
1,150 |
405 |
|||||||||
East Lane Re VII Ltd. |
||||||||||||
12.050% (BRMMUSDF + 8.500%) due 03/31/2032 ~ |
250 |
251 |
||||||||||
F&G Annuities & Life, Inc. |
||||||||||||
6.250% due 10/04/2034 (n) |
200 |
196 |
||||||||||
6.500% due 06/04/2029 (n) |
500 |
511 |
||||||||||
Ford Motor Credit Co. LLC |
||||||||||||
5.667% (SOFRRATE + 2.030%) due 03/20/2028 ~(n) |
800 |
810 |
||||||||||
Gateway Re Ltd. |
||||||||||||
5.550% (BRMMUSDF + 2.000%) due 07/06/2029 ~ |
850 |
850 |
||||||||||
Golden Bear Re Ltd. |
||||||||||||
13.289% (T-BILL 1MO + 9.500%) due 03/08/2032 ~ |
250 |
252 |
||||||||||
13.300% (JMMMUSTF + 9.750%) due 01/08/2029 ~ |
520 |
534 |
||||||||||
Greengrove RE Ltd. |
||||||||||||
11.270% (BNMMDTSC + 7.750%) due 04/08/2032 ~ |
250 |
255 |
||||||||||
GSPA Monetization Trust |
||||||||||||
6.422% due 10/09/2029 (n) |
1,520 |
1,522 |
||||||||||
Hestia Re Ltd. |
||||||||||||
3.620% (BNMMDTSC + 0.100%) due 04/22/2029 ~ |
20 |
11 |
||||||||||
IIFL Finance Ltd. |
||||||||||||
7.600% due 09/10/2029 (n) |
400 |
402 |
||||||||||
Integrity RE III Ltd. |
||||||||||||
29.020% (FHMMUSTF + 25.500%) due 06/06/2027 ~ |
250 |
262 |
||||||||||
ION Platform Finance SARL |
||||||||||||
6.500% due 09/30/2030 |
EUR |
100 |
92 |
|||||||||
6.500% due 09/30/2030 (n) |
700 |
645 |
||||||||||
6.875% due 09/30/2032 (n) |
1,600 |
1,365 |
||||||||||
7.875% due 05/01/2029 |
6,600 |
6,826 |
||||||||||
ION Platform Finance U.S., Inc. |
||||||||||||
7.875% due 09/30/2032 (n) |
$ |
3,000 |
2,177 |
|||||||||
ION Platform Finance U.S., Inc./ION Platform Finance SARL |
||||||||||||
9.000% due 08/01/2029 (n) |
1,700 |
1,514 |
||||||||||
9.500% due 05/30/2029 (n) |
900 |
822 |
||||||||||
Iron Mountain, Inc. |
||||||||||||
6.250% due 01/15/2035 (n) |
1,800 |
1,809 |
||||||||||
Long Point Re IV Ltd. |
||||||||||||
7.289% (T-BILL 1MO + 3.500%) due 06/01/2034 ~ |
250 |
250 |
||||||||||
Lower Ferry Re Ltd. |
||||||||||||
8.156% (MSMMUSTF + 4.646%) due 07/08/2030 ~ |
600 |
600 |
||||||||||
9.014% (MSMMUSTF + 5.504%) due 07/08/2030 ~ |
5,000 |
5,001 |
||||||||||
Luca RE Ltd. |
||||||||||||
10.800% (JMMMUSTF + 7.250%) due 07/22/2031 ~ |
300 |
312 |
||||||||||
Mayflower Re Ltd. |
||||||||||||
8.565% (FHMMUSTF + 5.045%) due 07/08/2030 ~ |
1,000 |
1,000 |
||||||||||
10.033% (FHMMUSTF + 6.513%) due 07/08/2030 ~ |
6,000 |
6,005 |
||||||||||
Nature Coast Re Ltd. |
||||||||||||
11.789% (T-BILL 3MO + 8.000%) due 02/26/2030 ~ |
250 |
252 |
||||||||||
13.271% (GSMMUSTI + 9.750%) due 04/10/2033 ~ |
250 |
260 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
Polestar Re Ltd. |
||||||||||||
14.140% (BRMMUSDF + 10.590%) due 01/07/2028 ~ |
$ |
300 |
$ |
313 |
||||||||
16.800% (BRMMUSDF + 13.250%) due 01/07/2027 ~ |
800 |
821 |
||||||||||
Purple Re Ltd. |
||||||||||||
10.050% (JMMMUSTF + 6.500%) due 06/07/2033 ~ |
250 |
250 |
||||||||||
Quercus II Re DAC |
||||||||||||
13.324% (EUR003M + 11.000%) due 01/07/2031 ~ |
EUR |
250 |
290 |
|||||||||
Recoletos RE DAC |
||||||||||||
5.289% (T-BILL 3MO + 1.500%) due 07/06/2032 ~ |
$ |
250 |
250 |
|||||||||
Sanders Re III Ltd. |
||||||||||||
15.870% (BRMMUSDF + 12.320%) due 04/09/2029 ~ |
628 |
206 |
||||||||||
Stingray Compute LLC |
||||||||||||
6.000% due 06/15/2031 |
100 |
100 |
||||||||||
Sutter Re Ltd. |
||||||||||||
7.289% (T-BILL 3MO + 3.500%) due 06/07/2034 ~ |
250 |
250 |
||||||||||
Titanium 2l Bondco SARL |
||||||||||||
6.250% due 01/14/2031 |
EUR |
6,703 |
1,121 |
|||||||||
Torrey Pines Re Ltd. |
||||||||||||
9.586% (JMMMUSTF + 6.036%) due 06/07/2032 ~ |
$ |
250 |
257 |
|||||||||
10.656% (JMMMUSTF + 7.106%) due 06/07/2032 ~ |
250 |
258 |
||||||||||
Uniti Group LP/Uniti Fiber Holdings, Inc./CSL Capital LLC |
||||||||||||
6.000% due 01/15/2030 (n) |
7,721 |
7,549 |
||||||||||
Ursa Re II Ltd. |
||||||||||||
11.260% (MSMMUSTF + 7.750%) due 06/07/2028 ~ |
250 |
257 |
||||||||||
Ursa Re Ltd. |
||||||||||||
11.021% (GSMMUSTI + 7.500%) due 02/22/2028 ~ |
400 |
413 |
||||||||||
12.800% (JMMMUSTF + 9.250%) due 12/07/2028 ~ |
800 |
815 |
||||||||||
Winston RE Ltd. |
||||||||||||
15.210% (BNMMDTSC + 11.690%) due 02/26/2031 ~ |
600 |
612 |
||||||||||
67,338 |
||||||||||||
INDUSTRIALS 26.6% |
||||||||||||
ADI Escrow Issuer LLC |
||||||||||||
7.125% due 07/15/2034 |
200 |
204 |
||||||||||
Altice France Lux 3/Altice Holdings 1 |
||||||||||||
10.000% due 01/15/2033 (n) |
801 |
789 |
||||||||||
Altice France SA |
||||||||||||
6.875% due 10/15/2030 (n) |
452 |
439 |
||||||||||
9.500% due 11/01/2029 (n) |
1,295 |
1,315 |
||||||||||
ams-OSRAM AG |
||||||||||||
7.250% due 05/31/2032 |
EUR |
710 |
837 |
|||||||||
10.500% due 03/30/2029 (n) |
849 |
1,034 |
||||||||||
APLD ComputeCo 3 LLC |
||||||||||||
7.000% due 06/15/2031 |
$ |
800 |
799 |
|||||||||
Aston Martin Capital Holdings Ltd. |
||||||||||||
10.000% due 03/31/2029 (n) |
700 |
545 |
||||||||||
Australian Metcoal Financing Pty. Ltd. |
||||||||||||
6.250% due 10/22/2031 (n) |
600 |
611 |
||||||||||
6.750% due 04/22/2034 (n) |
600 |
619 |
||||||||||
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. |
||||||||||||
8.000% due 02/15/2031 (n) |
400 |
404 |
||||||||||
Beazer Homes USA, Inc. |
||||||||||||
8.000% due 01/15/2032 |
200 |
201 |
||||||||||
Beignet Investor LLC |
||||||||||||
6.581% due 05/30/2049 (n) |
16,470 |
16,810 |
||||||||||
Central Parent LLC/CDK Global II LLC/CDK Financing Co., Inc. |
||||||||||||
8.000% due 06/15/2029 |
890 |
579 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
Central Parent, Inc./CDK Global, Inc. |
||||||||||||
7.250% due 06/15/2029 |
$ |
1,980 |
$ |
1,287 |
||||||||
Cerdia Finanz GmbH |
||||||||||||
9.375% due 10/03/2031 |
2,400 |
2,156 |
||||||||||
Cheplapharm Arzneimittel GmbH |
||||||||||||
7.500% due 05/15/2030 (n) |
EUR |
11,600 |
13,755 |
|||||||||
Cogent Communications Group LLC/Cogent Finance, Inc. |
||||||||||||
6.500% due 07/01/2032 |
$ |
2,800 |
2,523 |
|||||||||
7.000% due 06/15/2027 |
2,100 |
2,086 |
||||||||||
7.000% due 06/15/2027 (n) |
2,000 |
1,988 |
||||||||||
CVR Energy, Inc. |
||||||||||||
7.500% due 02/15/2031 (n) |
1,100 |
1,096 |
||||||||||
CVS Pass-Through Trust |
||||||||||||
7.507% due 01/10/2032 (n) |
400 |
418 |
||||||||||
DISH DBS Corp. |
||||||||||||
5.250% due 12/01/2026 (n) |
9,910 |
9,810 |
||||||||||
5.750% due 12/01/2028 (n) |
10,620 |
10,297 |
||||||||||
7.750% due 07/01/2026 |
5,200 |
5,200 |
||||||||||
Dorman Products, Inc. |
||||||||||||
6.250% due 06/15/2034 |
100 |
101 |
||||||||||
Ecopetrol SA |
||||||||||||
7.750% due 02/01/2032 (n) |
13,800 |
14,459 |
||||||||||
ELK Grove Village Property LLC |
||||||||||||
7.500% due 06/15/2031 |
500 |
504 |
||||||||||
Flora Food Management BV |
||||||||||||
6.875% due 07/02/2029 (n) |
EUR |
1,000 |
1,118 |
|||||||||
7.500% due 10/31/2030 |
600 |
684 |
||||||||||
FMC Corp. |
||||||||||||
8.000% due 06/01/2031 (n) |
$ |
200 |
208 |
|||||||||
Ford Motor Co. |
||||||||||||
7.700% due 05/15/2097 (n) |
4,515 |
4,745 |
||||||||||
Gaia Purchaser, Inc. |
||||||||||||
7.625% due 07/15/2033 (b) |
200 |
202 |
||||||||||
GSG Bidco Ltd. |
||||||||||||
5.375% due 06/15/2036 |
EUR |
1,100 |
1,248 |
|||||||||
HCA, Inc. |
||||||||||||
7.500% due 11/15/2095 (n) |
$ |
1,200 |
1,298 |
|||||||||
Hybar LLC |
||||||||||||
7.375% due 07/01/2034 |
200 |
201 |
||||||||||
Incora Intermediate II LLC (0.500% PIK) |
||||||||||||
0.500% due 01/31/2030 «(c) |
7,342 |
7,342 |
||||||||||
Incora Top Holdco LLC |
||||||||||||
6.000% due 01/30/2033 «(m) |
5,029 |
7,926 |
||||||||||
Intralot Capital Luxembourg SA |
||||||||||||
6.731% due 10/15/2031 • |
EUR |
3,100 |
3,580 |
|||||||||
6.750% due 10/15/2031 |
700 |
813 |
||||||||||
6.750% due 10/15/2031 (n) |
1,300 |
1,510 |
||||||||||
JetBlue Airways Corp./JetBlue Loyalty LP |
||||||||||||
9.875% due 09/20/2031 (n) |
$ |
1,648 |
1,495 |
|||||||||
Kronos International, Inc. |
||||||||||||
9.500% due 03/15/2029 (n) |
EUR |
3,000 |
3,382 |
|||||||||
LifePoint Health, Inc. |
||||||||||||
7.000% due 05/01/2034 (n) |
$ |
1,200 |
1,151 |
|||||||||
Motion Finco SARL |
||||||||||||
8.375% due 02/15/2032 (n) |
300 |
254 |
||||||||||
National Mentor Holdings, Inc. |
||||||||||||
10.500% due 12/15/2030 |
300 |
316 |
||||||||||
New Albertsons LP |
||||||||||||
6.570% due 02/23/2028 (n) |
5,600 |
5,636 |
||||||||||
Newfold Digital Holdings Group, Inc. |
||||||||||||
11.750% due 04/30/2029 |
1,250 |
825 |
||||||||||
Nissan Motor Co. Ltd. |
||||||||||||
4.810% due 09/17/2030 (n) |
5,100 |
4,752 |
||||||||||
Noble Finance II LLC |
||||||||||||
8.000% due 04/15/2030 (n) |
8,172 |
8,471 |
||||||||||
Ocado Group PLC |
||||||||||||
10.500% due 08/08/2029 (n) |
GBP |
2,450 |
3,374 |
|||||||||
11.000% due 06/15/2030 (n) |
4,250 |
5,954 |
||||||||||
Petroleos de Venezuela SA |
||||||||||||
6.000% due 11/15/2026 ^(d) |
$ |
4,400 |
1,661 |
|||||||||
9.750% due 05/17/2035 ^(d) |
1,900 |
850 |
||||||||||
50 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
QXO Building Products, Inc. |
||||||||||||
6.500% due 07/15/2031 |
$ |
600 |
$ |
612 |
||||||||
6.875% due 07/15/2034 |
800 |
822 |
||||||||||
Road Michigan Property Owner I LLC |
||||||||||||
7.500% due 03/30/2045 (n) |
21,347 |
21,288 |
||||||||||
Russian Railways Via RZD Capital PLC |
||||||||||||
7.487% due 03/25/2031 ^(d) |
GBP |
1,000 |
929 |
|||||||||
Thames Water Super Senior Issuer PLC |
||||||||||||
9.750% due 10/10/2027 |
11 |
16 |
||||||||||
9.750% due 10/10/2027 |
3 |
4 |
||||||||||
Times Square Hotel Trust |
||||||||||||
8.528% due 08/01/2026 |
$ |
44 |
44 |
|||||||||
Topaz Solar Farms LLC |
||||||||||||
4.875% due 09/30/2039 |
1,587 |
1,409 |
||||||||||
5.750% due 09/30/2039 |
4,516 |
4,450 |
||||||||||
Toucan FinCo Ltd./Toucan FinCo Can, Inc./Toucan FinCo U.S. LLC |
||||||||||||
8.250% due 05/15/2030 (n) |
EUR |
1,400 |
1,465 |
|||||||||
9.500% due 05/15/2030 (n) |
$ |
1,300 |
1,227 |
|||||||||
Tutor Perini Corp. |
||||||||||||
6.625% due 07/15/2033 (b) |
600 |
604 |
||||||||||
U.S. Renal Care, Inc. |
||||||||||||
10.625% due 06/28/2028 |
842 |
783 |
||||||||||
Ubisoft Entertainment SA |
||||||||||||
0.878% due 11/24/2027 (n) |
EUR |
3,700 |
3,741 |
|||||||||
Valaris Ltd. |
||||||||||||
8.375% due 04/30/2030 (n) |
$ |
6,637 |
6,895 |
|||||||||
Vale SA |
||||||||||||
0.000% due 12/29/2049 ~(j) |
BRL |
90,000 |
6,997 |
|||||||||
Vedanta Resources Finance II PLC |
||||||||||||
7.000% due 07/13/2032 (b) |
$ |
1,800 |
1,791 |
|||||||||
7.375% due 07/13/2034 (b) |
1,800 |
1,784 |
||||||||||
7.750% due 07/13/2037 (b) |
1,800 |
1,789 |
||||||||||
Viridien |
||||||||||||
8.500% due 10/15/2030 (n) |
EUR |
1,175 |
1,423 |
|||||||||
10.000% due 10/15/2030 (n) |
$ |
2,601 |
2,764 |
|||||||||
VistaJet Malta Finance PLC/Vista Management Holding, Inc. |
||||||||||||
8.750% due 01/15/2032 (n) |
4,200 |
4,164 |
||||||||||
Vmed O2 U.K. Financing I PLC |
||||||||||||
6.750% due 01/15/2033 (n) |
4,900 |
4,153 |
||||||||||
VZ Secured Financing BV |
||||||||||||
7.500% due 01/15/2033 (n) |
1,300 |
1,245 |
||||||||||
Wayfair LLC |
||||||||||||
7.750% due 09/15/2030 (n) |
1,300 |
1,368 |
||||||||||
231,629 |
||||||||||||
UTILITIES 3.5% |
||||||||||||
Altice Holdings 1 SARL |
||||||||||||
0.000% due 12/31/2099 « |
EUR |
9 |
145 |
|||||||||
COX Asset Mexico SA de CV |
||||||||||||
7.125% due 01/08/2032 (n) |
$ |
250 |
254 |
|||||||||
7.750% due 05/08/2036 (n) |
200 |
205 |
||||||||||
FORESEA Holding SA |
||||||||||||
7.500% due 06/15/2030 |
456 |
450 |
||||||||||
7.500% due 06/15/2030 (n) |
326 |
322 |
||||||||||
NGD Holdings BV |
||||||||||||
9.875% due 12/31/2029 |
220 |
215 |
||||||||||
Nova Securitisation SARL |
||||||||||||
5.750% due 02/03/2031 (n) |
2,200 |
2,123 |
||||||||||
6.500% due 02/03/2036 (n) |
1,500 |
1,412 |
||||||||||
OI SA |
||||||||||||
8.500% due 12/31/2028 ^(d) |
26,267 |
279 |
||||||||||
10.000% due 06/30/2027 ^(d) |
12,899 |
6,288 |
||||||||||
PBF Holding Co. LLC/PBF Finance Corp. |
||||||||||||
7.250% due 06/01/2034 (n) |
900 |
892 |
||||||||||
Peru LNG SRL |
||||||||||||
5.375% due 03/22/2030 (n) |
6,575 |
6,399 |
||||||||||
Qwest Corp. |
||||||||||||
7.375% due 05/01/2030 |
3,600 |
3,547 |
||||||||||
SW Finance I PLC |
||||||||||||
1.625% due 03/30/2027 |
GBP |
1,800 |
2,326 |
|||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
Uniti Group LP/Uniti Group Finance 2019, Inc./CSL Capital LLC |
||||||||||||
6.500% due 02/15/2029 (n) |
$ |
2,800 |
$ |
2,780 |
||||||||
Veon Midco BV |
||||||||||||
6.950% due 06/01/2031 (n) |
1,500 |
1,499 |
||||||||||
7.450% due 06/01/2033 (n) |
1,100 |
1,098 |
||||||||||
30,234 |
||||||||||||
Total Corporate Bonds & Notes (Cost $357,470) |
329,201 |
|||||||||||
CONVERTIBLE BONDS & NOTES 2.6% |
||||||||||||
INDUSTRIALS 2.6% |
||||||||||||
ams-OSRAM AG |
||||||||||||
2.125% due 11/03/2027 |
EUR |
14,000 |
15,717 |
|||||||||
DISH Network Corp. |
||||||||||||
3.375% due 08/15/2026 |
$ |
3,400 |
3,300 |
|||||||||
Ubisoft Entertainment SA |
||||||||||||
2.375% due 11/15/2028 |
EUR |
3,200 |
3,592 |
|||||||||
Total Convertible Bonds & Notes (Cost $22,884) |
22,609 |
|||||||||||
MUNICIPAL BONDS & NOTES 0.7% |
||||||||||||
MICHIGAN 0.2% |
||||||||||||
Detroit, Michigan General Obligation Bonds, Series 2014 |
||||||||||||
4.000% due 04/01/2044 |
$ |
2,275 |
1,862 |
|||||||||
WEST VIRGINIA 0.5% |
||||||||||||
Tobacco Settlement Finance Authority, West Virginia Revenue Bonds, Series 2007 |
||||||||||||
0.000% due 06/01/2047 (g) |
44,400 |
4,449 |
||||||||||
Total Municipal Bonds & Notes (Cost $8,298) |
6,311 |
|||||||||||
U.S. GOVERNMENT AGENCIES 3.9% |
||||||||||||
Federal Home Loan Mortgage Corp. Military Housing Bonds Resecuritization Trust Certificates |
||||||||||||
5.992% due 11/25/2055 «~(n) |
7,229 |
5,349 |
||||||||||
Federal Home Loan Mortgage Corp. REMICS |
||||||||||||
3.500% due 05/25/2050 (a)(n) |
1,411 |
257 |
||||||||||
Federal Home Loan Mortgage Corp. STACR REMICS Trust |
||||||||||||
10.728% due 01/25/2042 • |
4,200 |
4,330 |
||||||||||
11.128% due 10/25/2041 • |
7,200 |
7,335 |
||||||||||
11.428% due 11/25/2041 • |
8,700 |
8,917 |
||||||||||
12.128% due 02/25/2042 • |
2,100 |
2,194 |
||||||||||
Federal National Mortgage Association Connecticut Avenue Securities Trust |
||||||||||||
9.128% due 12/25/2041 • |
1,200 |
1,223 |
||||||||||
9.628% due 12/25/2041 • |
2,672 |
2,730 |
||||||||||
Federal National Mortgage Association Interest STRIPS |
||||||||||||
3.000% due 02/25/2043 (a)(n) |
8,365 |
925 |
||||||||||
Federal National Mortgage Association REMICS |
||||||||||||
3.000% due 06/25/2050 (a)(n) |
3,157 |
614 |
||||||||||
Total U.S. Government Agencies (Cost $38,502) |
33,874 |
|||||||||||
U.S. TREASURY OBLIGATIONS 0.2% |
||||||||||||
U.S. Treasury Bonds |
||||||||||||
4.875% due 08/15/2045 (q) |
454 |
451 |
||||||||||
U.S. Treasury Notes |
||||||||||||
4.125% due 02/15/2036 |
980 |
956 |
||||||||||
Total U.S. Treasury Obligations (Cost $1,437) |
1,407 |
|||||||||||
NON-AGENCY MORTGAGE-BACKED SECURITIES 5.3% |
||||||||||||
Atrium Hotel Portfolio Trust |
||||||||||||
5.423% due 12/15/2036 •(n) |
4,600 |
4,544 |
||||||||||
Banc of America Funding Trust |
||||||||||||
6.000% due 07/25/2037 |
138 |
119 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
Banc of America Mortgage Trust |
||||||||||||
6.000% due 03/25/2037 |
$ |
103 |
$ |
89 |
||||||||
BCAP LLC Trust |
||||||||||||
3.465% due 08/28/2037 ~ |
429 |
427 |
||||||||||
3.618% due 03/27/2036 ~ |
1,073 |
724 |
||||||||||
4.440% due 03/26/2037 þ |
568 |
993 |
||||||||||
Bear Stearns ALT-A Trust |
||||||||||||
4.050% due 08/25/2036 ~ |
520 |
229 |
||||||||||
4.240% due 11/25/2035 ~ |
1,405 |
1,296 |
||||||||||
4.263% due 01/25/2036 • |
294 |
289 |
||||||||||
4.394% due 11/25/2036 ~ |
2,168 |
1,076 |
||||||||||
4.443% due 09/25/2035 ~ |
180 |
72 |
||||||||||
Bear Stearns ALT-A Trust II |
||||||||||||
4.119% due 09/25/2047 ~ |
3,355 |
1,560 |
||||||||||
CD Mortgage Trust |
||||||||||||
5.688% due 10/15/2048 |
222 |
209 |
||||||||||
Chase Mortgage Finance Trust |
||||||||||||
4.646% due 12/25/2035 ~ |
3 |
3 |
||||||||||
6.000% due 07/25/2037 |
526 |
217 |
||||||||||
CHL Mortgage Pass-Through Trust |
||||||||||||
4.031% due 09/20/2036 ~ |
93 |
83 |
||||||||||
6.000% due 07/25/2037 |
1,079 |
418 |
||||||||||
CIM Trust |
||||||||||||
4.750% due 12/25/2065 þ |
695 |
680 |
||||||||||
Citigroup Mortgage Loan Trust, Inc. |
||||||||||||
4.303% due 04/25/2037 ~ |
65 |
57 |
||||||||||
CLNY Trust |
||||||||||||
6.004% due 11/15/2038 • |
1,500 |
1,438 |
||||||||||
6.700% due 11/15/2038 • |
1,100 |
1,036 |
||||||||||
Countrywide Alternative Loan Trust |
||||||||||||
5.500% due 03/25/2035 |
193 |
74 |
||||||||||
5.750% due 01/25/2035 |
72 |
72 |
||||||||||
5.750% due 02/25/2035 |
157 |
101 |
||||||||||
5.750% due 03/25/2037 |
358 |
174 |
||||||||||
6.000% due 02/25/2035 |
547 |
444 |
||||||||||
6.000% due 04/25/2036 |
632 |
268 |
||||||||||
6.000% due 02/25/2037 |
3,866 |
1,275 |
||||||||||
6.000% due 04/25/2037 |
697 |
290 |
||||||||||
6.250% due 12/25/2036 • |
1,012 |
391 |
||||||||||
6.500% due 08/25/2036 |
367 |
102 |
||||||||||
Countrywide Alternative Loan Trust Resecuritization |
||||||||||||
6.000% due 08/25/2037 ~ |
660 |
320 |
||||||||||
CSMC Trust Capital Certificates |
||||||||||||
4.769% due 10/26/2036 ~ |
3,618 |
3,111 |
||||||||||
GSR Mortgage Loan Trust |
||||||||||||
4.331% due 08/25/2034 ~ |
198 |
188 |
||||||||||
6.000% due 02/25/2036 |
1,225 |
424 |
||||||||||
HarborView Mortgage Loan Trust |
||||||||||||
4.234% due 01/19/2036 • |
122 |
128 |
||||||||||
4.237% due 06/19/2036 ~ |
3,187 |
1,176 |
||||||||||
Hilton USA Trust |
||||||||||||
2.828% due 11/05/2035 |
800 |
667 |
||||||||||
IndyMac IMSC Mortgage Loan Trust |
||||||||||||
6.500% due 07/25/2037 |
3,359 |
976 |
||||||||||
Jefferies Resecuritization Trust |
||||||||||||
6.000% due 05/26/2036 |
6,613 |
2,447 |
||||||||||
JP Morgan Alternative Loan Trust |
||||||||||||
4.162% due 03/25/2037 ~ |
575 |
518 |
||||||||||
6.000% due 12/25/2035 |
690 |
447 |
||||||||||
JP Morgan Chase Commercial Mortgage Securities Trust |
||||||||||||
4.802% due 07/05/2033 • |
510 |
494 |
||||||||||
5.739% due 12/15/2036 • |
1,000 |
13 |
||||||||||
6.489% due 12/15/2036 • |
2,500 |
6 |
||||||||||
JP Morgan Mortgage Trust |
||||||||||||
5.168% due 04/25/2037 ~ |
2 |
2 |
||||||||||
5.234% due 01/25/2037 ~ |
157 |
132 |
||||||||||
5.293% due 02/25/2036 ~ |
641 |
401 |
||||||||||
Lehman Mortgage Trust |
||||||||||||
6.000% due 07/25/2037 |
2 |
1 |
||||||||||
Lehman XS Trust |
||||||||||||
4.203% due 06/25/2047 • |
588 |
569 |
||||||||||
MASTR Alternative Loan Trust |
||||||||||||
6.750% due 07/25/2036 |
1,447 |
525 |
||||||||||
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 51 |
Schedule of Investments |
PIMCO Corporate & Income Strategy Fund |
(Cont.) |
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
Merrill Lynch Mortgage Investors Trust |
||||||||||||
4.244% due 03/25/2036 ~ |
$ |
299 |
$ |
132 |
||||||||
New Orleans Hotel Trust |
||||||||||||
5.262% due 04/15/2032 •(n) |
800 |
792 |
||||||||||
PRPM LLC |
||||||||||||
5.503% due 08/25/2030 þ(n) |
867 |
864 |
||||||||||
5.729% due 07/25/2030 þ |
851 |
848 |
||||||||||
RALI Trust |
||||||||||||
3.909% due 12/26/2034 ~ |
780 |
248 |
||||||||||
4.223% due 05/25/2037 • |
66 |
59 |
||||||||||
6.000% due 08/25/2036 |
100 |
87 |
||||||||||
Residential Asset Securitization Trust |
||||||||||||
6.000% due 11/25/2036 |
2,412 |
764 |
||||||||||
6.250% due 09/25/2037 |
2,407 |
797 |
||||||||||
RFMSI Trust |
||||||||||||
4.847% due 02/25/2037 ~ |
645 |
378 |
||||||||||
6.500% due 03/25/2032 |
31 |
31 |
||||||||||
Sequoia Mortgage Trust |
||||||||||||
2.999% due 07/20/2037 ~ |
169 |
124 |
||||||||||
3.961% due 02/20/2047 ~ |
96 |
73 |
||||||||||
SG Commercial Mortgage Securities Trust |
||||||||||||
2.937% due 03/15/2037 (n) |
1,200 |
1,150 |
||||||||||
STARM Mortgage Loan Trust |
||||||||||||
5.346% due 04/25/2037 ~ |
76 |
31 |
||||||||||
5.644% due 02/25/2037 ~ |
59 |
51 |
||||||||||
Structured Adjustable Rate Mortgage Loan Trust |
||||||||||||
4.199% due 01/25/2036 ~ |
1,037 |
543 |
||||||||||
4.486% due 07/25/2035 ~ |
189 |
167 |
||||||||||
4.997% due 11/25/2036 ~ |
779 |
593 |
||||||||||
WaMu Mortgage Pass-Through Certificates Trust |
||||||||||||
3.236% due 10/25/2036 ~ |
556 |
493 |
||||||||||
3.788% due 07/25/2037 ~ |
160 |
145 |
||||||||||
3.994% due 02/25/2037 ~ |
195 |
171 |
||||||||||
4.590% due 07/25/2037 ~ |
352 |
329 |
||||||||||
Washington Mutual Mortgage Pass-Through Certificates WMALT Trust |
||||||||||||
4.584% due 05/25/2047 • |
3 |
11 |
||||||||||
6.000% due 10/25/2035 |
748 |
599 |
||||||||||
Worldwide Plaza Trust |
||||||||||||
3.526% due 11/10/2036 (n) |
2,032 |
1,676 |
||||||||||
WSTN Trust |
||||||||||||
7.958% due 07/05/2037 ~(n) |
1,300 |
1,312 |
||||||||||
8.748% due 07/05/2037 ~(n) |
1,300 |
1,302 |
||||||||||
10.174% due 07/05/2037 ~ |
1,100 |
1,104 |
||||||||||
Total Non-Agency Mortgage-Backed Securities (Cost $62,978) |
46,169 |
|||||||||||
ASSET-BACKED SECURITIES 7.4% |
||||||||||||
AUTOMOBILE ABS OTHER 0.3% |
||||||||||||
Ally Bank Auto Credit-Linked Notes |
||||||||||||
6.066% due 06/15/2033 |
1,105 |
1,104 |
||||||||||
6.942% due 06/15/2033 |
487 |
487 |
||||||||||
10.219% due 06/15/2033 |
845 |
845 |
||||||||||
2,436 |
||||||||||||
CMBS OTHER 0.0% |
||||||||||||
LNR CDO III Ltd. |
||||||||||||
4.047% due 02/28/2043 • |
1,558 |
0 |
||||||||||
HOME EQUITY OTHER 3.4% |
||||||||||||
ACE Securities Corp. Home Equity Loan Trust |
||||||||||||
4.348% due 02/25/2036 • |
23,991 |
21,796 |
||||||||||
Argent Securities Trust |
||||||||||||
4.143% due 03/25/2036 • |
2,765 |
1,563 |
||||||||||
Bear Stearns Asset-Backed Securities I Trust |
||||||||||||
4.043% due 10/25/2036 • |
781 |
777 |
||||||||||
Citigroup Mortgage Loan Trust, Inc. |
||||||||||||
4.083% due 12/25/2036 • |
1,114 |
623 |
||||||||||
Home Equity Mortgage Loan Asset-Backed Trust |
||||||||||||
4.083% due 07/25/2037 •(n) |
6,705 |
3,700 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
Merrill Lynch Mortgage Investors Trust |
||||||||||||
4.083% due 04/25/2037 • |
$ |
301 |
$ |
121 |
||||||||
Morgan Stanley ABS Capital I, Inc. Trust |
||||||||||||
4.063% due 06/25/2036 • |
202 |
180 |
||||||||||
Morgan Stanley Mortgage Loan Trust |
||||||||||||
6.250% due 02/25/2037 ~ |
343 |
193 |
||||||||||
Park Place Securities, Inc. Asset-Backed Pass-Through Certificates |
||||||||||||
5.533% due 10/25/2034 • |
573 |
546 |
||||||||||
29,499 |
||||||||||||
HOME EQUITY SEQUENTIAL 0.2% |
||||||||||||
JP Morgan Mortgage Acquisition Trust |
||||||||||||
4.071% due 10/25/2030 þ |
3,008 |
1,450 |
||||||||||
WHOLE LOAN COLLATERAL 2.5% |
||||||||||||
Bear Stearns Asset-Backed Securities Trust |
||||||||||||
6.500% due 10/25/2036 |
343 |
107 |
||||||||||
First Franklin Mortgage Loan Trust |
||||||||||||
4.708% due 09/25/2035 • |
3,250 |
3,076 |
||||||||||
4.738% due 05/25/2036 • |
5,017 |
4,673 |
||||||||||
Lehman XS Trust |
||||||||||||
5.670% due 08/25/2035 þ |
10 |
10 |
||||||||||
Pretium Mortgage Credit Partners LLC |
||||||||||||
5.180% due 01/25/2056 þ |
2,550 |
2,531 |
||||||||||
5.184% due 11/25/2055 þ |
1,090 |
1,079 |
||||||||||
5.193% due 10/25/2055 þ(n) |
1,757 |
1,759 |
||||||||||
5.342% due 12/25/2055 þ(n) |
2,066 |
2,052 |
||||||||||
5.510% due 04/25/2056 þ |
1,278 |
1,276 |
||||||||||
5.657% due 07/25/2055 þ |
870 |
871 |
||||||||||
5.732% due 08/25/2055 þ |
885 |
887 |
||||||||||
5.744% due 06/25/2055 þ(n) |
2,069 |
2,072 |
||||||||||
RCO X Mortgage LLC |
||||||||||||
5.418% due 10/25/2030 þ |
583 |
581 |
||||||||||
Residential Asset Mortgage Products Trust |
||||||||||||
4.963% due 01/25/2035 • |
1,320 |
1,285 |
||||||||||
22,259 |
||||||||||||
OTHER ABS 1.0% |
||||||||||||
Adagio VI CLO DAC |
||||||||||||
0.000% due 04/30/2031 «~ |
EUR |
1,343 |
0 |
|||||||||
Apidos CLO XXVIII |
||||||||||||
0.000% due 10/20/2038 ~ |
$ |
5,183 |
1,347 |
|||||||||
Avoca CLO XIII DAC |
||||||||||||
0.000% due 04/15/2034 ~ |
EUR |
1,600 |
618 |
|||||||||
Belle Haven ABS CDO Ltd. |
||||||||||||
7.000% due 07/05/2046 • |
$ |
175,347 |
366 |
|||||||||
Carlyle U.S. CLO Ltd. |
||||||||||||
0.000% due 10/21/2037 ~ |
1,895 |
131 |
||||||||||
CIFC Funding Ltd. |
||||||||||||
0.000% due 04/24/2030 ~ |
2,300 |
227 |
||||||||||
0.000% due 03/31/2038 ~ |
1,221 |
552 |
||||||||||
Man GLG U.S. CLO Ltd. |
||||||||||||
0.000% due 07/15/2034 ~ |
400 |
139 |
||||||||||
Marble Point CLO XXIII Ltd. |
||||||||||||
0.000% due 01/22/2052 ~ |
2,150 |
519 |
||||||||||
Marlette Funding Trust |
||||||||||||
0.000% due 09/17/2029 «(g) |
7 |
0 |
||||||||||
SLM Student Loan EDC Repackaging Trust |
||||||||||||
0.000% due 10/28/2029 «(g) |
3 |
950 |
||||||||||
SLM Student Loan Trust |
||||||||||||
0.000% due 01/25/2042 «(g) |
4 |
731 |
||||||||||
SMB Private Education Loan Trust |
||||||||||||
0.000% due 09/18/2046 «(g) |
1 |
322 |
||||||||||
0.000% due 10/15/2048 «(g) |
1 |
245 |
||||||||||
Taberna Preferred Funding V Ltd. |
||||||||||||
4.300% due 08/05/2036 • |
2,793 |
2,639 |
||||||||||
8,786 |
||||||||||||
Total Asset-Backed Securities (Cost $84,471) |
64,430 |
|||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
SOVEREIGN ISSUES 11.3% |
||||||||||||
Angola Government International Bonds |
||||||||||||
8.000% due 11/26/2029 |
$ |
1,250 |
$ |
1,273 |
||||||||
9.375% due 03/31/2033 |
2,300 |
2,356 |
||||||||||
Argentina Bonar Bonds |
||||||||||||
0.750% due 07/09/2030 þ |
2,782 |
1,728 |
||||||||||
Argentina Republic Government International Bonds |
||||||||||||
1.000% due 07/09/2029 |
468 |
427 |
||||||||||
3.500% due 07/09/2041 þ |
5,955 |
4,467 |
||||||||||
4.125% due 07/09/2046 þ |
107 |
82 |
||||||||||
5.000% due 01/09/2038 þ |
10,995 |
9,203 |
||||||||||
Avenir Issuer IV Ireland DAC |
||||||||||||
6.000% due 10/25/2027 |
611 |
604 |
||||||||||
Brazil Government International Bonds |
||||||||||||
4.875% due 04/23/2033 (n) |
EUR |
600 |
689 |
|||||||||
Colombia TES |
||||||||||||
1.000% due 08/22/2029 |
COP |
372,900 |
106 |
|||||||||
1.000% due 03/26/2031 |
228,100 |
55 |
||||||||||
6.500% due 01/22/2031 (i) |
124,420 |
36 |
||||||||||
7.000% due 06/30/2032 |
224,100 |
52 |
||||||||||
7.250% due 10/18/2034 |
227,600 |
51 |
||||||||||
9.250% due 05/28/2042 |
291,000 |
69 |
||||||||||
11.000% due 08/22/2029 |
2,924,600 |
830 |
||||||||||
11.500% due 07/25/2046 |
851,900 |
242 |
||||||||||
11.750% due 01/24/2035 |
80,738,100 |
23,201 |
||||||||||
12.000% due 03/13/2058 |
3,502,500 |
1,013 |
||||||||||
12.500% due 02/27/2030 |
31,794,900 |
9,361 |
||||||||||
12.750% due 11/28/2040 |
2,703,800 |
825 |
||||||||||
13.250% due 02/09/2033 |
1,279,100 |
395 |
||||||||||
Development Bank of Kazakhstan JSC |
||||||||||||
18.400% due 10/16/2028 |
KZT |
305,500 |
665 |
|||||||||
Dominican Republic International Bonds |
||||||||||||
10.500% due 03/15/2037 (n) |
DOP |
342,500 |
6,103 |
|||||||||
10.750% due 06/01/2036 (n) |
73,100 |
1,322 |
||||||||||
11.250% due 09/15/2035 (n) |
16,900 |
313 |
||||||||||
DRC International Bonds |
||||||||||||
8.750% due 04/16/2032 |
$ |
1,200 |
1,244 |
|||||||||
9.500% due 04/16/2037 |
200 |
210 |
||||||||||
Ecuador Government International Bonds |
||||||||||||
0.000% due 07/31/2030 (g) |
900 |
779 |
||||||||||
Egypt Government Bonds |
||||||||||||
19.698% due 10/14/2030 |
EGP |
761,200 |
14,768 |
|||||||||
Ghana Government International Bonds |
||||||||||||
0.000% due 07/03/2026 (g) |
$ |
11 |
11 |
|||||||||
0.000% due 01/03/2030 (g)(n) |
59 |
53 |
||||||||||
5.000% due 07/03/2029 þ |
296 |
293 |
||||||||||
Hellenic Republic Government Bonds |
||||||||||||
2.000% due 04/22/2027 |
EUR |
314 |
358 |
|||||||||
3.900% due 01/30/2033 |
693 |
828 |
||||||||||
4.000% due 01/30/2037 |
543 |
644 |
||||||||||
4.200% due 01/30/2042 |
678 |
803 |
||||||||||
Pakistan Government International Bonds |
||||||||||||
6.975% due 04/24/2029 |
$ |
1,300 |
1,304 |
|||||||||
Peru Government International Bonds |
||||||||||||
6.900% due 08/12/2037 |
PEN |
1,600 |
480 |
|||||||||
6.950% due 08/12/2031 |
2,481 |
826 |
||||||||||
Qatar Government International Bonds |
||||||||||||
4.800% due 04/08/2033 (n) |
$ |
1,500 |
1,508 |
|||||||||
Republic of Kenya Government International Bonds |
||||||||||||
7.875% due 02/26/2034 (n) |
900 |
896 |
||||||||||
Romania Government International Bonds |
||||||||||||
5.875% due 07/11/2032 (n) |
EUR |
1,000 |
1,198 |
|||||||||
Russia Foreign Bonds - Eurobond |
||||||||||||
1.125% due 11/20/2027 |
100 |
0 |
||||||||||
Turkiye Government Bonds |
||||||||||||
40.305% (BISTREFI + 0.000%) due 09/06/2028 ~(n) |
TRY |
177,300 |
3,821 |
|||||||||
40.760% (BISTREFI + 0.000%) due 08/19/2026 ~ |
200 |
4 |
||||||||||
40.760% (BISTREFI + 0.000%) due 05/17/2028 ~(n) |
35,400 |
766 |
||||||||||
Ukraine Government International Bonds |
||||||||||||
0.000% due 02/01/2030 þ(h) |
$ |
29 |
21 |
|||||||||
0.000% due 02/01/2034 þ(h) |
107 |
61 |
||||||||||
0.000% due 02/01/2035 þ(h) |
90 |
55 |
||||||||||
52 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
0.000% due 02/01/2036 þ(h) |
$ |
75 |
$ |
45 |
||||||||
4.500% due 02/01/2034 þ |
131 |
92 |
||||||||||
4.500% due 02/01/2035 þ |
183 |
127 |
||||||||||
4.500% due 02/01/2036 þ |
210 |
144 |
||||||||||
Venezuela Government International Bonds |
||||||||||||
9.250% due 09/15/2027 ^(d) |
1,508 |
745 |
||||||||||
9.250% due 05/07/2028 ^(d) |
1,000 |
483 |
||||||||||
11.950% due 08/05/2031 ^(d) |
500 |
273 |
||||||||||
Total Sovereign Issues (Cost $90,476) |
98,308 |
|||||||||||
SHARES |
||||||||||||
COMMON STOCKS 3.8% |
||||||||||||
COMMUNICATION SERVICES 0.7% |
||||||||||||
Clear Channel Outdoor Holdings, Inc. (e) |
531,903 |
1,287 |
||||||||||
iHeartMedia, Inc. Class A (e) |
111,281 |
477 |
||||||||||
iHeartMedia, Inc. Class B «(e) |
98,039 |
362 |
||||||||||
Promotora de Informaciones SA Class A (e) |
454,519 |
159 |
||||||||||
SES SA «(e) |
173,216 |
2,620 |
||||||||||
Uniti Group, Inc. (e) |
107,010 |
1,228 |
||||||||||
6,133 |
||||||||||||
CONSUMER DISCRETIONARY 0.0% |
||||||||||||
Steinhoff International Holdings NV «(e)(m) |
21,355,531 |
0 |
||||||||||
West Marine «(e)(m) |
2,500 |
16 |
||||||||||
16 |
||||||||||||
FINANCIALS 1.8% |
||||||||||||
Banca Monte dei Paschi di Siena SpA |
687,000 |
8,538 |
||||||||||
Windstream Servcies LLC (e) |
591,921 |
6,789 |
||||||||||
XBP Global Holdings, Inc. (e) |
658 |
2 |
||||||||||
15,329 |
||||||||||||
INDUSTRIALS 1.2% |
||||||||||||
Drillco Holdings Luxembourg SA «(m) |
44,290 |
1,015 |
||||||||||
Foresea Holdings SA « |
18,411 |
422 |
||||||||||
Incora Intermediate II LLC «(e)(m) |
217,553 |
8,575 |
||||||||||
Westmoreland Mining Holdings «(e)(m) |
50,075 |
33 |
||||||||||
Westmoreland Mining LLC «(e)(m) |
274,552 |
721 |
||||||||||
10,766 |
||||||||||||
INFORMATION TECHNOLOGY 0.1% |
||||||||||||
NVIDIA Corp. |
4,345 |
869 |
||||||||||
SHARES |
MARKET VALUE (000S) |
|||||||||||
REAL ESTATE 0.0% |
||||||||||||
MNSN Holdings, Inc. (e)(m) |
3,207 |
$ |
269 |
|||||||||
Total Common Stocks (Cost $27,747) |
33,382 |
|||||||||||
WARRANTS 0.1% |
||||||||||||
COMMUNICATION SERVICES 0.1% |
||||||||||||
Windstream Holdings II LLC - Exp. 08/01/2035 « |
115,309 |
1,321 |
||||||||||
CONSUMER DISCRETIONARY 0.0% |
||||||||||||
West Marine - Exp. 09/08/2028 « |
324 |
0 |
||||||||||
Total Warrants (Cost $702) |
1,321 |
|||||||||||
PREFERRED SECURITIES 2.1% |
||||||||||||
BANKING & FINANCE 1.6% |
||||||||||||
ADLER Group SA « |
1,196,075 |
0 |
||||||||||
AGFC Capital Trust I |
||||||||||||
5.685% due 01/15/2067 (n) |
2,300,000 |
1,437 |
||||||||||
Brighthouse Holdings LLC |
||||||||||||
6.500% due 07/27/2037 þ(j) |
70,000 |
60 |
||||||||||
Compeer Financial ACA |
||||||||||||
4.875% due 08/15/2026 (j) |
1,600,000 |
1,589 |
||||||||||
WAFC Voussoir « |
6,151,619 |
6,152 |
||||||||||
Windstream Holdings II LLC |
||||||||||||
11.000% « |
3,776 |
4,209 |
||||||||||
13,447 |
||||||||||||
INDUSTRIALS 0.5% |
||||||||||||
Clover Holdings, Inc. |
||||||||||||
0.000% «(m) |
13,811 |
264 |
||||||||||
SVB Financial Trust |
||||||||||||
0.000% due 11/07/2032 (g) |
18,840 |
2 |
||||||||||
11.000% due 11/07/2032 |
3,654 |
1,681 |
||||||||||
Syniverse Holdings, Inc. |
||||||||||||
12.500% «(m) |
2,816,920 |
2,052 |
||||||||||
Venture Global LNG, Inc. |
||||||||||||
9.000% due 09/30/2029 (j)(n) |
540,000 |
527 |
||||||||||
4,526 |
||||||||||||
Total Preferred Securities (Cost $18,578) |
17,973 |
|||||||||||
REAL ESTATE INVESTMENT TRUSTS 0.2% |
||||||||||||
REAL ESTATE 0.2% |
||||||||||||
VICI Properties, Inc. |
77,566 |
2,059 |
||||||||||
Total Real Estate Investment Trusts (Cost $323) |
2,059 |
|||||||||||
SHARES |
MARKET VALUE (000S) |
|||||||||||
SHORT-TERM INSTRUMENTS 2.9% |
||||||||||||
MUTUAL FUNDS 0.0% |
||||||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class |
||||||||||||
3.690% (l) |
102,689 |
$ |
103 |
|||||||||
PRINCIPAL AMOUNT (000S) |
||||||||||||
EGYPT TREASURY BILLS 0.2% |
||||||||||||
23.927% due 09/15/2026 - 10/20/2026 (f)(g) |
EGP |
88,500 |
1,693 |
|||||||||
NIGERIA TREASURY BILLS 2.2% |
||||||||||||
20.606% due 01/14/2027 - 01/28/2027 (f)(g) |
NGN |
29,168,700 |
18,922 |
|||||||||
U.S. TREASURY BILLS 0.5% |
||||||||||||
3.681% due 07/21/2026 - 08/25/2026 (f)(g)(q) |
$ |
4,255 |
4,241 |
|||||||||
Total Short-Term Instruments (Cost $24,834) |
24,959 |
|||||||||||
Total Investments in Securities (Cost $1,078,541) |
994,382 |
|||||||||||
SHARES |
||||||||||||
INVESTMENTS IN AFFILIATES 8.8% |
||||||||||||
SHORT-TERM INSTRUMENTS 8.8% |
||||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 8.8% |
||||||||||||
PIMCO Short-Term Floating NAV Portfolio III |
7,845,419 |
76,422 |
||||||||||
Total Short-Term Instruments (Cost $76,413) |
76,422 |
|||||||||||
Total Investments in Affiliates (Cost $76,413) |
76,422 |
|||||||||||
Total Investments 123.0% (Cost $1,154,954) |
$ |
1,070,804 |
||||||||||
Financial Derivative Instruments (o)(p) (0.3)% (Cost or Premiums, net $(22,630)) |
(2,767 |
) | ||||||||||
Other Assets and Liabilities, net (22.7)% |
(197,472 |
) | ||||||||||
Net Assets Applicable to Common Shareholders 100.0% |
$ |
870,565 |
||||||||||
NOTES TO SCHEDULE OF INVESTMENTS:
* |
A zero balance may reflect actual amounts rounding to less than one thousand. |
^ |
Security is in default. |
« |
Security valued using significant unobservable inputs (Level 3). |
µ |
All or a portion of this amount represents unfunded loan commitments. The interest rate for the unfunded portion will be determined at the time of funding. See Note 4, Securities and Other Investments, in the Notes to Financial Statements for more information regarding unfunded loan commitments. |
~ |
Variable or Floating rate security. Rate shown is the rate in effect as of period end. Certain variable rate securities are not based on a published reference rate and spread, rather are determined by the issuer or agent and are based on current market conditions. Reference rate is as of reset date, which may vary by security. These securities may not indicate a reference rate and/or spread in their description. |
• |
Rate shown is the rate in effect as of period end. The rate may be based on a fixed rate, a capped rate or a floor rate and may convert to a variable or floating rate in the future. These securities do not indicate a reference rate and spread in their description. |
þ |
Coupon represents a rate which changes periodically based on a predetermined schedule or event. Rate shown is the rate in effect as of period end. |
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 53 |
Schedule of Investments |
PIMCO Corporate & Income Strategy Fund |
(Cont.) |
(a) |
Security is an Interest Only (“IO”) or IO Strip. |
(b) |
When-issued security. |
(c) |
Payment in-kind security. |
(d) |
Security is not accruing income as of the date of this report. |
(e) |
Security did not produce income within the last twelve months. |
(f) |
Coupon represents a weighted average yield to maturity. |
(g) |
Zero coupon security. |
(h) |
Security becomes interest bearing at a future date. |
(i) |
Principal amount of security is adjusted for inflation. |
(j) |
Perpetual maturity; date shown, if applicable, represents next contractual call date. |
(k) |
Contingent convertible security. |
(l) |
Coupon represents a 7-Day Yield. |
(m) RESTRICTED SECURITIES:
Issuer Description |
Acquisition Date |
Cost |
Market Value |
Market Value as Percentage of Net Assets |
||||||||||||
Clover Holdings, Inc. |
12/09/2024 |
$ |
207 |
$ |
264 |
0.03 |
% | |||||||||
Drillco Holdings Luxembourg SA |
06/08/2023 |
885 |
1,015 |
0.12 |
||||||||||||
Incora Intermediate II LLC |
01/31/2025 |
10,568 |
8,575 |
0.99 |
||||||||||||
Incora Top Holdco LLC6.000% due 01/30/2033 |
01/31/2025 - 08/01/2025 |
5,029 |
7,926 |
0.91 |
||||||||||||
MNSN Holdings, Inc. |
03/16/2023 - 03/29/2023 |
36 |
269 |
0.03 |
||||||||||||
Steinhoff International Holdings NV |
06/30/2023 - 10/30/2023 |
0 |
0 |
0.00 |
||||||||||||
Syniverse Holdings, Inc. |
05/12/2022 - 05/31/2026 |
2,782 |
2,052 |
0.24 |
||||||||||||
West Marine |
09/12/2023 |
36 |
16 |
0.00 |
||||||||||||
Westmoreland Mining Holdings |
12/08/2014 - 10/19/2016 |
1,442 |
33 |
0.00 |
||||||||||||
Westmoreland Mining LLC |
06/30/2023 - 05/14/2026 |
890 |
721 |
0.08 |
||||||||||||
$ |
21,875 |
$ |
20,871 |
2.40 |
% | |||||||||||
BORROWINGS AND OTHER FINANCING TRANSACTIONS
REVERSE REPURCHASE AGREEMENTS:
Counterparty |
Borrowing Rate (1) |
Settlement Date |
Maturity Date |
Amount Borrowed (1) |
Payable for Reverse Repurchase Agreements |
|||||||||||||||||
BOS |
3.550 |
% |
06/24/2026 |
09/08/2026 |
$ |
(1,103 |
) |
$ |
(1,104 |
) | ||||||||||||
3.850 |
06/18/2026 |
07/20/2026 |
(293 |
) |
(293 |
) | ||||||||||||||||
4.000 |
06/04/2026 |
07/06/2026 |
(305 |
) |
(306 |
) | ||||||||||||||||
4.050 |
06/30/2026 |
TBD |
(2) |
(221 |
) |
(221 |
) | |||||||||||||||
BPS |
(0.250 |
) |
06/17/2026 |
TBD |
(2) |
EUR |
(352 |
) |
(402 |
) | ||||||||||||
2.500 |
06/17/2026 |
TBD |
(2) |
(379 |
) |
(433 |
) | |||||||||||||||
2.500 |
06/18/2026 |
TBD |
(2) |
(852 |
) |
(975 |
) | |||||||||||||||
4.270 |
06/26/2026 |
09/28/2026 |
GBP |
(5,303 |
) |
(7,038 |
) | |||||||||||||||
BRC |
2.450 |
06/17/2026 |
07/01/2026 |
(461 |
) |
(527 |
) | |||||||||||||||
2.450 |
06/17/2026 |
07/02/2026 |
(835 |
) |
(955 |
) | ||||||||||||||||
3.900 |
02/03/2026 |
TBD |
(2) |
$ |
(1,603 |
) |
(1,628 |
) | ||||||||||||||
4.000 |
02/03/2026 |
TBD |
(2) |
(4,838 |
) |
(4,918 |
) | |||||||||||||||
4.700 |
06/17/2026 |
10/15/2026 |
(1,309 |
) |
(1,311 |
) | ||||||||||||||||
BYR |
4.120 |
04/23/2026 |
07/23/2026 |
(467 |
) |
(470 |
) | |||||||||||||||
4.120 |
06/16/2026 |
08/17/2026 |
(5,077 |
) |
(5,086 |
) | ||||||||||||||||
4.170 |
06/15/2026 |
08/14/2026 |
(17,473 |
) |
(17,505 |
) | ||||||||||||||||
CDC |
4.020 |
05/13/2026 |
09/09/2026 |
(5,239 |
) |
(5,267 |
) | |||||||||||||||
4.020 |
05/20/2026 |
09/09/2026 |
(8,644 |
) |
(8,683 |
) | ||||||||||||||||
4.020 |
06/09/2026 |
09/09/2026 |
(296 |
) |
(297 |
) | ||||||||||||||||
4.120 |
05/13/2026 |
09/09/2026 |
(1,552 |
) |
(1,561 |
) | ||||||||||||||||
4.120 |
06/22/2026 |
10/20/2026 |
(3,231 |
) |
(3,234 |
) | ||||||||||||||||
4.120 |
06/25/2026 |
09/09/2026 |
(1,083 |
) |
(1,083 |
) | ||||||||||||||||
4.120 |
06/30/2026 |
09/01/2026 |
(1,535 |
) |
(1,535 |
) | ||||||||||||||||
4.120 |
06/30/2026 |
09/09/2026 |
(2,814 |
) |
(2,815 |
) | ||||||||||||||||
4.120 |
07/01/2026 |
09/09/2026 |
(939 |
) |
(939 |
) | ||||||||||||||||
4.130 |
06/01/2026 |
09/01/2026 |
(12,687 |
) |
(12,730 |
) | ||||||||||||||||
4.130 |
06/02/2026 |
07/02/2026 |
(356 |
) |
(358 |
) | ||||||||||||||||
4.130 |
06/11/2026 |
09/01/2026 |
(6,304 |
) |
(6,319 |
) | ||||||||||||||||
4.170 |
04/23/2026 |
07/23/2026 |
(7,000 |
) |
(7,056 |
) | ||||||||||||||||
CEW |
3.870 |
06/26/2026 |
07/02/2026 |
(20,320 |
) |
(20,331 |
) | |||||||||||||||
3.870 |
07/02/2026 |
07/01/2028 |
(20,130 |
) |
(20,130 |
) | ||||||||||||||||
54 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
Counterparty |
Borrowing Rate (1) |
Settlement Date |
Maturity Date |
Amount Borrowed (1) |
Payable for Reverse Repurchase Agreements |
|||||||||||||||||
DBL |
4.105 |
% |
06/18/2026 |
08/21/2026 |
$ |
(5,138 |
) |
$ |
(5,146 |
) | ||||||||||||
4.195 |
06/26/2026 |
09/25/2026 |
(718 |
) |
(719 |
) | ||||||||||||||||
4.295 |
06/26/2026 |
09/25/2026 |
(1,130 |
) |
(1,131 |
) | ||||||||||||||||
4.395 |
06/26/2026 |
09/25/2026 |
(1,115 |
) |
(1,115 |
) | ||||||||||||||||
DEU |
3.800 |
06/11/2026 |
07/13/2026 |
(4,349 |
) |
(4,358 |
) | |||||||||||||||
4.050 |
06/11/2026 |
07/13/2026 |
(1,506 |
) |
(1,510 |
) | ||||||||||||||||
IND |
4.040 |
05/13/2026 |
08/13/2026 |
(275 |
) |
(276 |
) | |||||||||||||||
4.110 |
06/18/2026 |
09/16/2026 |
(171 |
) |
(171 |
) | ||||||||||||||||
4.130 |
04/15/2026 |
07/15/2026 |
(2,056 |
) |
(2,074 |
) | ||||||||||||||||
4.130 |
06/18/2026 |
07/15/2026 |
(939 |
) |
(941 |
) | ||||||||||||||||
4.130 |
07/01/2026 |
09/15/2026 |
(344 |
) |
(344 |
) | ||||||||||||||||
4.190 |
06/25/2026 |
07/01/2026 |
(342 |
) |
(342 |
) | ||||||||||||||||
MEI |
4.100 |
06/18/2026 |
07/20/2026 |
(226 |
) |
(226 |
) | |||||||||||||||
4.100 |
06/30/2026 |
TBD |
(2) |
(182 |
) |
(182 |
) | |||||||||||||||
MYI |
1.700 |
07/02/2026 |
TBD |
(2) |
EUR |
(229 |
) |
(261 |
) | |||||||||||||
2.150 |
06/23/2026 |
07/08/2026 |
$ |
(4,230 |
) |
(4,232 |
) | |||||||||||||||
RDR |
4.000 |
05/20/2026 |
TBD |
(2) |
(4,446 |
) |
(4,463 |
) | ||||||||||||||
RTA |
4.145 |
04/17/2026 |
10/19/2026 |
(324 |
) |
(327 |
) | |||||||||||||||
4.145 |
05/20/2026 |
11/20/2026 |
(3,739 |
) |
(3,756 |
) | ||||||||||||||||
4.145 |
06/02/2026 |
11/30/2026 |
(5,102 |
) |
(5,119 |
) | ||||||||||||||||
4.145 |
06/25/2026 |
11/20/2026 |
(486 |
) |
(487 |
) | ||||||||||||||||
4.420 |
06/05/2026 |
08/04/2026 |
(2,497 |
) |
(2,505 |
) | ||||||||||||||||
4.470 |
06/05/2026 |
08/04/2026 |
(2,902 |
) |
(2,912 |
) | ||||||||||||||||
4.470 |
06/29/2026 |
10/26/2026 |
(2,819 |
) |
(2,820 |
) | ||||||||||||||||
SCX |
4.050 |
02/17/2026 |
TBD |
(2) |
(4,528 |
) |
(4,596 |
) | ||||||||||||||
4.050 |
04/16/2026 |
TBD |
(2) |
(43 |
) |
(43 |
) | |||||||||||||||
4.100 |
12/12/2025 |
TBD |
(2) |
(1,298 |
) |
(1,328 |
) | |||||||||||||||
4.100 |
06/03/2026 |
TBD |
(2) |
(5,282 |
) |
(5,299 |
) | |||||||||||||||
4.170 |
06/26/2026 |
08/04/2026 |
(812 |
) |
(812 |
) | ||||||||||||||||
SGY |
3.960 |
06/04/2026 |
TBD |
(2) |
(762 |
) |
(765 |
) | ||||||||||||||
SOG |
2.370 |
06/17/2026 |
TBD |
(2) |
EUR |
(849 |
) |
(971 |
) | |||||||||||||
2.420 |
06/17/2026 |
TBD |
(2) |
(2,138 |
) |
(2,445 |
) | |||||||||||||||
2.430 |
06/17/2026 |
TBD |
(2) |
(6,152 |
) |
(7,036 |
) | |||||||||||||||
3.910 |
04/16/2026 |
TBD |
(2) |
$ |
(1,490 |
) |
(1,502 |
) | ||||||||||||||
4.000 |
02/20/2026 |
07/01/2026 |
(2,950 |
) |
(2,993 |
) | ||||||||||||||||
4.000 |
02/20/2026 |
TBD |
(2) |
(5,461 |
) |
(5,541 |
) | |||||||||||||||
4.000 |
06/30/2026 |
TBD |
(2) |
(1,259 |
) |
(1,259 |
) | |||||||||||||||
4.000 |
07/01/2026 |
06/30/2028 |
(1,854 |
) |
(1,854 |
) | ||||||||||||||||
4.100 |
05/04/2026 |
08/04/2026 |
(749 |
) |
(754 |
) | ||||||||||||||||
4.110 |
05/06/2026 |
07/09/2026 |
(569 |
) |
(572 |
) | ||||||||||||||||
4.230 |
04/16/2026 |
07/16/2026 |
(6,094 |
) |
(6,148 |
) | ||||||||||||||||
4.230 |
06/01/2026 |
07/16/2026 |
(6,139 |
) |
(6,161 |
) | ||||||||||||||||
TDM |
3.850 |
06/16/2026 |
TBD |
(2) |
(1,543 |
) |
(1,546 |
) | ||||||||||||||
UBS |
1.650 |
06/17/2026 |
TBD |
(2) |
EUR |
(1,522 |
) |
(1,740 |
) | |||||||||||||
1.750 |
06/17/2026 |
TBD |
(2) |
(703 |
) |
(804 |
) | |||||||||||||||
1.800 |
06/17/2026 |
TBD |
(2) |
(160 |
) |
(183 |
) | |||||||||||||||
2.340 |
06/17/2026 |
TBD |
(2) |
(213 |
) |
(243 |
) | |||||||||||||||
2.527 |
06/30/2026 |
09/30/2026 |
(2,726 |
) |
(3,115 |
) | ||||||||||||||||
3.950 |
02/03/2026 |
TBD |
(2) |
$ |
(6,265 |
) |
(6,367 |
) | ||||||||||||||
Total Reverse Repurchase Agreements |
$ |
(245,004 |
) | |||||||||||||||||||
BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY
The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of June 30, 2026:
Counterparty |
Repurchase Agreement Proceeds to be Received |
Payable for Reverse Repurchase Agreements |
Payable for Sale-Buyback Transactions |
Total Borrowings and Other Financing Transactions |
Collateral Pledged/(Received) |
Net Exposure (3) |
||||||||||||||||||
Global/Master Repurchase Agreement |
||||||||||||||||||||||||
BOS |
$ |
0 |
$ |
(1,924 |
) |
$ |
0 |
$ |
(1,924 |
) |
$ |
2,495 |
$ |
571 |
||||||||||
BPS |
0 |
(8,848 |
) |
0 |
(8,848 |
) |
10,149 |
1,301 |
||||||||||||||||
BRC |
0 |
(9,339 |
) |
0 |
(9,339 |
) |
20,423 |
11,084 |
||||||||||||||||
BYR |
0 |
(23,061 |
) |
0 |
(23,061 |
) |
26,419 |
3,358 |
||||||||||||||||
CDC |
0 |
(51,877 |
) |
0 |
(51,877 |
) |
57,236 |
5,359 |
||||||||||||||||
CEW |
0 |
(40,461 |
) |
0 |
(40,461 |
) |
21,241 |
(19,220 |
) | |||||||||||||||
DBL |
0 |
(8,111 |
) |
0 |
(8,111 |
) |
9,100 |
989 |
||||||||||||||||
DEU |
0 |
(5,868 |
) |
0 |
(5,868 |
) |
7,144 |
1,276 |
||||||||||||||||
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 55 |
Schedule of Investments |
PIMCO Corporate & Income Strategy Fund |
(Cont.) |
Counterparty |
Repurchase Agreement Proceeds to be Received |
Payable for Reverse Repurchase Agreements |
Payable for Sale-Buyback Transactions |
Total Borrowings and Other Financing Transactions |
Collateral Pledged/(Received) |
Net Exposure (3) |
||||||||||||||||||
IND |
$ |
0 |
$ |
(4,148 |
) |
$ |
0 |
$ |
(4,148 |
) |
$ |
4,421 |
$ |
273 |
||||||||||
MEI |
0 |
(408 |
) |
0 |
(408 |
) |
459 |
51 |
||||||||||||||||
MYI |
0 |
(4,493 |
) |
0 |
(4,493 |
) |
4,164 |
(329 |
) | |||||||||||||||
RDR |
0 |
(4,463 |
) |
0 |
(4,463 |
) |
4,612 |
149 |
||||||||||||||||
RTA |
0 |
(17,926 |
) |
0 |
(17,926 |
) |
21,892 |
3,966 |
||||||||||||||||
SCX |
0 |
(12,078 |
) |
0 |
(12,078 |
) |
13,274 |
1,196 |
||||||||||||||||
SGY |
0 |
(765 |
) |
0 |
(765 |
) |
892 |
127 |
||||||||||||||||
SOG |
0 |
(37,236 |
) |
0 |
(37,236 |
) |
40,216 |
2,980 |
||||||||||||||||
TDM |
0 |
(1,546 |
) |
0 |
(1,546 |
) |
1,623 |
77 |
||||||||||||||||
UBS |
0 |
(12,452 |
) |
0 |
(12,452 |
) |
3,797 |
(8,655 |
) | |||||||||||||||
Total Borrowings and Other Financing Transactions |
$ |
0 |
$ |
(245,004 |
) |
$ |
0 |
|||||||||||||||||
CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS
Remaining Contractual Maturity of the Agreements
Overnight and Continuous |
Up to 30 days |
31-90 days |
Greater Than 90 days |
Total |
||||||||||||||||
Reverse Repurchase Agreements |
||||||||||||||||||||
U.S.Treasury Obligations |
$ |
0 |
$ |
(20,689 |
) |
$ |
0 |
$ |
0 |
$ |
(20,689 |
) | ||||||||
Corporate Bonds & Notes |
(3,862 |
) |
(28,964 |
) |
(72,226 |
) |
(55,695 |
) |
(160,747 |
) | ||||||||||
U.S. Government Agencies |
0 |
(5,868 |
) |
0 |
0 |
(5,868 |
) | |||||||||||||
Non-Agency Mortgage-Backed Securities |
0 |
0 |
(8,859 |
) |
(1,311 |
) |
(10,170 |
) | ||||||||||||
Asset-Backed Securities |
0 |
0 |
(4,667 |
)) |
(2,820 |
) |
(7,487 |
) | ||||||||||||
Sovereign Issues |
0 |
0 |
(812 |
) |
(13,914 |
) |
(14,726 |
) | ||||||||||||
Preferred Securities |
0 |
(470 |
) |
0 |
(1,319 |
) |
(1,789 |
) | ||||||||||||
Total Borrowings |
$ |
(3,862 |
) |
$ |
(55,991 |
) |
$ |
(86,564 |
) |
$ |
(75,059 |
) |
$ |
(221,476 |
) | |||||
Payable for reverse repurchase agreements (4) |
$ |
(221,476 |
) | |||||||||||||||||
(n) |
Securities with an aggregate market value of $248,053 and cash of $2,081 have been pledged as collateral under the terms of the above master agreements as of June 30, 2026. |
(1) |
The average amount of borrowings outstanding during the period ended June 30, 2026 was $(145,236) at a weighted average interest rate of 4.043%. Average borrowings may include reverse repurchase agreements and sale-buyback transactions, if held during the period. |
(2) |
Open maturity reverse repurchase agreement. |
(3) |
Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information. |
(4) |
Unsettled reverse repurchase agreements liability of $(23,528) is outstanding at period end. |
(o) FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED
SWAP AGREEMENTS:
CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION
(1)
Reference Entity |
Fixed Receive Rate |
Payment Frequency |
Maturity Date |
Implied Credit Spread at June 30, 2026 (2) |
Notional Amount (3) |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Market Value (4) |
Variation Margin |
|||||||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||||||
Venture Global LNG, Inc. |
5.000 |
% |
Quarterly |
12/20/2030 |
2.113 |
% |
$ |
1,500 |
$ |
45 |
$ |
127 |
$ |
172 |
$ |
3 |
$ |
0 |
||||||||||||||||||||||
Worldline SA/France |
5.000 |
Quarterly |
12/20/2027 |
6.803 |
EUR |
400 |
(39 |
) |
28 |
(11 |
) |
0 |
0 |
|||||||||||||||||||||||||||
Worldline SA/France |
5.000 |
Quarterly |
12/20/2028 |
8.139 |
100 |
(14 |
) |
7 |
(7 |
) |
0 |
0 |
||||||||||||||||||||||||||||
Worldline SA/France |
5.000 |
Quarterly |
12/20/2030 |
9.729 |
12,900 |
(2,100 |
) |
(90 |
) |
(2,190 |
) |
23 |
0 |
|||||||||||||||||||||||||||
$ |
(2,108 |
) |
$ |
72 |
$ |
(2,036 |
) |
$ |
26 |
$ |
0 |
|||||||||||||||||||||||||||||
INTEREST RATE SWAPS
Pay/Receive Floating Rate |
Floating Rate Index |
Fixed Rate |
Payment Frequency |
Maturity Date |
Notional Amount |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Market Value |
Variation Margin |
|||||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||||
Pay |
1-Day GBP-SONIO Compounded-OIS |
3.500 |
% |
Annual |
03/18/2031 |
GBP |
17,230 |
$ |
(76 |
) |
$ |
(486 |
) |
$ |
(562 |
) |
$ |
0 |
$ |
(24 |
) | |||||||||||||||||
Receive |
1-Day GBP-SONIO Compounded-OIS |
0.750 |
Annual |
09/21/2032 |
7,800 |
757 |
1,382 |
2,139 |
14 |
0 |
||||||||||||||||||||||||||||
Receive |
1-Day GBP-SONIO Compounded-OIS |
2.000 |
Annual |
03/15/2033 |
2,800 |
311 |
170 |
481 |
5 |
0 |
||||||||||||||||||||||||||||
Receive |
1-Day GBP-SONIO Compounded-OIS |
0.750 |
Annual |
09/21/2052 |
1,600 |
328 |
1,006 |
1,334 |
5 |
0 |
||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.250 |
Semi-Annual |
12/15/2026 |
$ |
56,800 |
(705 |
) |
1,519 |
814 |
8 |
0 |
||||||||||||||||||||||||||
56 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
Pay/Receive Floating Rate |
Floating Rate Index |
Fixed Rate |
Payment Frequency |
Maturity Date |
Notional Amount |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Market Value |
Variation Margin |
|||||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
2.500 |
% |
Semi-Annual |
12/20/2027 |
$ |
44,900 |
$ |
172 |
$ |
(1,343 |
) |
$ |
(1,171 |
) |
$ |
0 |
$ |
(27 |
) | ||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
2.000 |
Annual |
12/21/2027 |
32,300 |
(2,862 |
) |
1,637 |
(1,225 |
) |
0 |
(20 |
) | |||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.250 |
Annual |
06/21/2028 |
19,200 |
(257 |
) |
(19 |
) |
(276 |
) |
0 |
(16 |
) | ||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.370 |
Semi-Annual |
08/25/2028 |
16,898 |
(5 |
) |
994 |
989 |
17 |
0 |
|||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.750 |
Annual |
12/20/2028 |
84,700 |
740 |
(1,166 |
) |
(426 |
) |
0 |
(98 |
) | |||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
4.500 |
Annual |
06/19/2029 |
69,900 |
34 |
1,055 |
1,089 |
0 |
(102 |
) | |||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
3.750 |
Annual |
06/20/2029 |
16,500 |
(312 |
) |
403 |
91 |
24 |
0 |
|||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
2.000 |
Annual |
12/21/2029 |
118,700 |
(12,228 |
) |
3,760 |
(8,468 |
) |
0 |
(210 |
) | |||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.250 |
Annual |
06/18/2030 |
224,100 |
(2,264 |
) |
(3,217 |
) |
(5,481 |
) |
0 |
(444 |
) | ||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.500 |
Annual |
03/18/2031 |
108,660 |
810 |
(2,772 |
) |
(1,962 |
) |
0 |
(272 |
) | |||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
0.750 |
Semi-Annual |
06/16/2031 |
57,200 |
3,442 |
5,435 |
8,877 |
146 |
0 |
||||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.250 |
Annual |
06/17/2031 |
111,270 |
(1,599 |
) |
(1,732 |
) |
(3,331 |
) |
0 |
(294 |
) | ||||||||||||||||||||||||
Pay (5) |
1-Day USD-SOFR Compounded-OIS |
4.000 |
Annual |
07/02/2031 |
155,000 |
812 |
(181 |
) |
631 |
0 |
(421 |
) | ||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.750 |
Semi-Annual |
12/15/2031 |
36,100 |
(505 |
) |
4,840 |
4,335 |
102 |
0 |
|||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
2.000 |
Annual |
12/21/2032 |
23,900 |
(3,269 |
) |
421 |
(2,848 |
) |
0 |
(82 |
) | |||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
3.750 |
Annual |
12/17/2035 |
10,020 |
(164 |
) |
362 |
198 |
49 |
0 |
|||||||||||||||||||||||||||
Receive (5) |
1-Day USD-SOFR Compounded-OIS |
4.000 |
Annual |
02/15/2036 |
22,600 |
(14 |
) |
38 |
24 |
113 |
0 |
|||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.500 |
Semi-Annual |
06/19/2044 |
93,400 |
(2,328 |
) |
(9,612 |
) |
(11,940 |
) |
0 |
(691 |
) | ||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
3.750 |
Annual |
12/17/2045 |
6,160 |
119 |
276 |
395 |
52 |
0 |
||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
2.000 |
Semi-Annual |
01/15/2050 |
8,300 |
(57 |
) |
3,176 |
3,119 |
59 |
0 |
|||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.750 |
Semi-Annual |
01/22/2050 |
14,500 |
(36 |
) |
6,036 |
6,000 |
100 |
0 |
|||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.875 |
Semi-Annual |
02/07/2050 |
15,100 |
(58 |
) |
6,012 |
5,954 |
106 |
0 |
|||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
2.250 |
Semi-Annual |
03/12/2050 |
10,800 |
(33 |
) |
3,660 |
3,627 |
80 |
0 |
|||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
2.000 |
Semi-Annual |
12/15/2051 |
10,900 |
775 |
(5,058 |
) |
(4,283 |
) |
0 |
(81 |
) | |||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.700 |
Semi-Annual |
02/01/2052 |
76,450 |
(1,210 |
) |
34,802 |
33,592 |
548 |
0 |
|||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
2.750 |
Annual |
06/21/2053 |
8,000 |
755 |
1,139 |
1,894 |
73 |
0 |
||||||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
13.172 |
Maturity |
01/02/2031 |
BRL |
17,700 |
1 |
(72 |
) |
(71 |
) |
10 |
0 |
|||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
13.180 |
Maturity |
01/02/2031 |
150,300 |
(61 |
) |
(537 |
) |
(598 |
) |
85 |
0 |
|||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
13.330 |
Maturity |
01/02/2031 |
2,100 |
0 |
(7 |
) |
(7 |
) |
1 |
0 |
||||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
13.724 |
Maturity |
01/02/2031 |
70,700 |
0 |
(88 |
) |
(88 |
) |
40 |
0 |
||||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
13.790 |
Maturity |
01/02/2031 |
18,700 |
0 |
(18 |
) |
(18 |
) |
10 |
0 |
||||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
13.882 |
Maturity |
01/02/2031 |
92,100 |
0 |
(47 |
) |
(47 |
) |
51 |
0 |
||||||||||||||||||||||||||
Pay |
3-Month COP-IBR Compounded-OIS |
12.000 |
Annual |
06/17/2027 |
COP |
6,588,900 |
(1 |
) |
0 |
(1 |
) |
0 |
(1 |
) | ||||||||||||||||||||||||
Pay |
3-Month COP-IBR Compounded-OIS |
11.250 |
Quarterly |
06/17/2028 |
678,100 |
0 |
1 |
1 |
0 |
0 |
||||||||||||||||||||||||||||
Receive |
6-Month EUR-EURIBOR |
0.150 |
Annual |
03/18/2030 |
EUR |
8,700 |
159 |
907 |
1,066 |
9 |
0 |
|||||||||||||||||||||||||||
Receive |
6-Month EUR-EURIBOR |
0.250 |
Annual |
09/21/2032 |
6,200 |
583 |
464 |
1,047 |
7 |
0 |
||||||||||||||||||||||||||||
Receive |
6-Month EUR-EURIBOR |
0.500 |
Annual |
09/21/2052 |
2,600 |
225 |
1,186 |
1,411 |
3 |
0 |
||||||||||||||||||||||||||||
Receive (5) |
6-Month EUR-EURIBOR |
0.830 |
Annual |
12/09/2052 |
15,300 |
192 |
1,883 |
2,075 |
0 |
(3 |
) | |||||||||||||||||||||||||||
$ |
(17,829 |
) |
$ |
56,209 |
$ |
38,380 |
$ |
1,717 |
$ |
(2,786 |
) | |||||||||||||||||||||||||||
Total Swap Agreements |
$ |
(19,937 |
) |
$ |
56,281 |
$ |
36,344 |
$ |
1,743 |
$ |
(2,786 |
) | ||||||||||||||||||||||||||
FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY
The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of June 30, 2026:
Financial Derivative Assets |
Financial Derivative Liabilities |
|||||||||||||||||||||||||||||||||||
Market Value |
Variation Margin Asset |
Total |
Market Value |
Variation Margin Liability |
Total |
|||||||||||||||||||||||||||||||
Purchased Options |
Futures |
Swap Agreements |
Written Options |
Futures |
Swap Agreements |
|||||||||||||||||||||||||||||||
Total Exchange-Traded or Centrally Cleared |
$ |
0 |
$ |
0 |
$ |
1,743 |
$ |
1,743 |
$ |
0 |
$ |
0 |
$ |
(2,786 |
) |
$ |
(2,786 |
) | ||||||||||||||||||
Cash of $30,004 has been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of June 30, 2026. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information.
(1) |
If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
(2) |
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
(3) |
The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 57 |
Schedule of Investments |
PIMCO Corporate & Income Strategy Fund |
(Cont.) |
(4) |
The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the underlying referenced instrument’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
(5) |
This instrument has a forward starting effective date. See Note 2, Securities Transactions and Investment Income, in the Notes to Financial Statements for further information. |
(p) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
FORWARD FOREIGN CURRENCY CONTRACTS:
Counterparty |
Settlement Month |
Currency to be Delivered |
Currency to be Received |
Unrealized Appreciation/ (Depreciation) |
||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||
BOA |
07/2026 |
DOP |
32,710 |
$ |
556 |
$ |
4 |
$ |
0 |
|||||||||||||||
07/2026 |
GBP |
14 |
19 |
0 |
0 |
|||||||||||||||||||
07/2026 |
$ |
1,884 |
EUR |
1,619 |
0 |
(35 |
) | |||||||||||||||||
08/2026 |
DOP |
26,590 |
$ |
447 |
5 |
0 |
||||||||||||||||||
08/2026 |
HKD |
2,860 |
366 |
0 |
0 |
|||||||||||||||||||
09/2026 |
COP |
20,706,824 |
5,342 |
0 |
(609 |
) | ||||||||||||||||||
09/2026 |
KZT |
8,993 |
18 |
0 |
0 |
|||||||||||||||||||
BPS |
07/2026 |
BRL |
6,267 |
1,211 |
0 |
(3 |
) | |||||||||||||||||
07/2026 |
EUR |
2,917 |
3,356 |
28 |
(5 |
) | ||||||||||||||||||
07/2026 |
GBP |
421 |
563 |
5 |
0 |
|||||||||||||||||||
07/2026 |
JPY |
814 |
5 |
0 |
0 |
|||||||||||||||||||
07/2026 |
$ |
1,234 |
BRL |
6,267 |
0 |
(20 |
) | |||||||||||||||||
07/2026 |
1,129 |
ZAR |
18,529 |
0 |
0 |
|||||||||||||||||||
08/2026 |
958 |
BRL |
4,880 |
0 |
(20 |
) | ||||||||||||||||||
09/2026 |
COP |
131,480 |
$ |
36 |
0 |
(2 |
) | |||||||||||||||||
08/2030 |
KWD |
57 |
193 |
6 |
0 |
|||||||||||||||||||
01/2031 |
2,107 |
7,099 |
209 |
0 |
||||||||||||||||||||
06/2031 |
421 |
1,416 |
38 |
0 |
||||||||||||||||||||
BRC |
07/2026 |
TRY |
341,621 |
7,181 |
0 |
(35 |
) | |||||||||||||||||
07/2026 |
$ |
6,790 |
TRY |
324,862 |
73 |
0 |
||||||||||||||||||
07/2026 |
5,634 |
ZAR |
91,512 |
0 |
(56 |
) | ||||||||||||||||||
BSH |
07/2026 |
JPY |
4,316 |
$ |
27 |
1 |
0 |
|||||||||||||||||
08/2026 |
$ |
16,058 |
BRL |
81,932 |
0 |
(309 |
) | |||||||||||||||||
09/2026 |
COP |
10,841,642 |
$ |
2,778 |
0 |
(337 |
) | |||||||||||||||||
CBK |
07/2026 |
EUR |
725 |
846 |
17 |
0 |
||||||||||||||||||
07/2026 |
$ |
435 |
EGP |
23,297 |
36 |
0 |
||||||||||||||||||
07/2026 |
1,520 |
EUR |
1,304 |
0 |
(30 |
) | ||||||||||||||||||
08/2026 |
COP |
20,519,127 |
$ |
5,390 |
0 |
(548 |
) | |||||||||||||||||
08/2026 |
EUR |
2,409 |
2,749 |
0 |
(8 |
) | ||||||||||||||||||
09/2026 |
COP |
16,299,296 |
4,293 |
0 |
(391 |
) | ||||||||||||||||||
09/2026 |
KZT |
34,874 |
69 |
0 |
(2 |
) | ||||||||||||||||||
09/2026 |
$ |
4 |
PEN |
15 |
0 |
0 |
||||||||||||||||||
12/2026 |
PEN |
5,124 |
$ |
1,466 |
0 |
(24 |
) | |||||||||||||||||
DUB |
07/2026 |
KZT |
4,955 |
10 |
0 |
0 |
||||||||||||||||||
07/2026 |
$ |
624 |
EGP |
33,706 |
58 |
0 |
||||||||||||||||||
07/2026 |
2,629 |
ZAR |
42,553 |
0 |
(35 |
) | ||||||||||||||||||
08/2026 |
KZT |
37,701 |
$ |
78 |
0 |
0 |
||||||||||||||||||
11/2026 |
19,061 |
38 |
0 |
0 |
||||||||||||||||||||
FAR |
07/2026 |
GBP |
9,844 |
13,238 |
180 |
0 |
||||||||||||||||||
07/2026 |
$ |
699 |
EUR |
613 |
1 |
0 |
||||||||||||||||||
07/2026 |
38 |
GBP |
29 |
0 |
0 |
|||||||||||||||||||
07/2026 |
117 |
JPY |
18,860 |
0 |
(1 |
) | ||||||||||||||||||
07/2026 |
3,673 |
ZAR |
60,622 |
22 |
0 |
|||||||||||||||||||
08/2026 |
EUR |
613 |
$ |
700 |
0 |
(1 |
) | |||||||||||||||||
08/2026 |
GBP |
76 |
100 |
0 |
0 |
|||||||||||||||||||
08/2026 |
JPY |
18,810 |
117 |
1 |
0 |
|||||||||||||||||||
GLM |
07/2026 |
BRL |
5,533 |
1,069 |
0 |
(3 |
) | |||||||||||||||||
07/2026 |
DOP |
4,178 |
70 |
0 |
0 |
|||||||||||||||||||
07/2026 |
$ |
1,097 |
BRL |
5,533 |
0 |
(25 |
) | |||||||||||||||||
07/2026 |
153 |
CAD |
217 |
1 |
0 |
|||||||||||||||||||
08/2026 |
CAD |
217 |
$ |
153 |
0 |
(1 |
) | |||||||||||||||||
08/2026 |
DOP |
76,045 |
1,273 |
10 |
0 |
|||||||||||||||||||
08/2026 |
$ |
1,558 |
BRL |
7,962 |
0 |
(28 |
) | |||||||||||||||||
09/2026 |
DOP |
202,321 |
$ |
3,319 |
7 |
(37 |
) | |||||||||||||||||
09/2026 |
$ |
2,075 |
BRL |
10,679 |
0 |
(36 |
) | |||||||||||||||||
10/2026 |
DOP |
6,313 |
$ |
106 |
2 |
0 |
||||||||||||||||||
11/2026 |
88,596 |
1,457 |
0 |
(2 |
) | |||||||||||||||||||
12/2026 |
6,691 |
112 |
2 |
0 |
||||||||||||||||||||
58 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
Counterparty |
Settlement Month |
Currency to be Delivered |
Currency to be Received |
Unrealized Appreciation/ (Depreciation) |
||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||
JPM |
07/2026 |
BRL |
11,828 |
$ |
2,298 |
$ |
7 |
$ |
0 |
|||||||||||||||
07/2026 |
KZT |
2,886 |
6 |
0 |
0 |
|||||||||||||||||||
07/2026 |
$ |
2,285 |
BRL |
11,828 |
6 |
0 |
||||||||||||||||||
08/2026 |
HKD |
10,626 |
$ |
1,358 |
1 |
0 |
||||||||||||||||||
09/2026 |
COP |
107,680 |
29 |
0 |
(1 |
) | ||||||||||||||||||
10/2026 |
$ |
2,298 |
BRL |
12,088 |
0 |
(7 |
) | |||||||||||||||||
12/2026 |
127 |
MXN |
2,225 |
0 |
(1 |
) | ||||||||||||||||||
MBC |
07/2026 |
EUR |
8,065 |
$ |
9,364 |
149 |
0 |
|||||||||||||||||
07/2026 |
JPY |
3,259 |
21 |
1 |
0 |
|||||||||||||||||||
07/2026 |
$ |
3,027 |
EUR |
2,627 |
0 |
(25 |
) | |||||||||||||||||
08/2026 |
638 |
EGP |
34,492 |
51 |
0 |
|||||||||||||||||||
08/2026 |
1,857 |
EUR |
1,626 |
4 |
0 |
|||||||||||||||||||
SCX |
08/2026 |
HKD |
10,028 |
$ |
1,282 |
1 |
0 |
|||||||||||||||||
09/2026 |
KZT |
2,943 |
6 |
0 |
0 |
|||||||||||||||||||
SOG |
07/2026 |
EUR |
101,339 |
118,216 |
2,426 |
0 |
||||||||||||||||||
07/2026 |
JPY |
10,472 |
66 |
2 |
0 |
|||||||||||||||||||
07/2026 |
$ |
121,579 |
EUR |
106,883 |
545 |
0 |
||||||||||||||||||
07/2026 |
40 |
GBP |
30 |
0 |
0 |
|||||||||||||||||||
08/2026 |
EUR |
106,883 |
$ |
121,744 |
0 |
(544 |
) | |||||||||||||||||
08/2026 |
GBP |
30 |
40 |
0 |
0 |
|||||||||||||||||||
SSB |
07/2026 |
CAD |
223 |
162 |
5 |
0 |
||||||||||||||||||
07/2026 |
$ |
13,447 |
GBP |
10,173 |
47 |
0 |
||||||||||||||||||
08/2026 |
GBP |
10,173 |
$ |
13,447 |
0 |
(47 |
) | |||||||||||||||||
UAG |
09/2026 |
COP |
17,856,186 |
4,628 |
0 |
(504 |
) | |||||||||||||||||
Total Forward Foreign Currency Contracts |
$ |
3,951 |
$ |
(3,732 |
) | |||||||||||||||||||
SWAP AGREEMENTS:
CREDIT DEFAULT SWAPS ON CORPORATE AND SOVEREIGN ISSUES - SELL PROTECTION
(1)
Counterparty |
Reference Entity |
Fixed Receive Rate |
Payment Frequency |
Maturity Date |
Implied Credit Spread at June 30, 2026 (2) |
Notional Amount (3) |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Swap Agreements, at Value (4) |
|||||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||||
BOA |
Petroleos Mexicanos |
1.000 |
% |
Quarterly |
06/20/2031 |
2.146 |
% |
$ |
5,600 |
$ |
(286 |
) |
$ |
11 |
$ |
0 |
$ |
(275 |
) | |||||||||||||||||||
BPS |
Colombia Government International Bonds |
1.000 |
Quarterly |
06/20/2036 |
2.387 |
1,110 |
(155 |
) |
41 |
0 |
(114 |
) | ||||||||||||||||||||||||||
BRC |
Petroleos Mexicanos |
1.000 |
Quarterly |
12/20/2030 |
2.019 |
100 |
(8 |
) |
4 |
0 |
(4 |
) | ||||||||||||||||||||||||||
Petroleos Mexicanos |
1.000 |
Quarterly |
06/20/2031 |
2.146 |
1,000 |
(57 |
) |
8 |
0 |
(49 |
) | |||||||||||||||||||||||||||
CBK |
Colombia Government International Bonds |
1.000 |
Quarterly |
06/20/2036 |
2.387 |
4,600 |
(640 |
) |
166 |
0 |
(474 |
) | ||||||||||||||||||||||||||
Israel Government International Bonds |
1.000 |
Quarterly |
06/20/2030 |
0.445 |
200 |
(3 |
) |
7 |
4 |
0 |
||||||||||||||||||||||||||||
Petroleos Mexicanos |
1.000 |
Quarterly |
12/20/2030 |
2.019 |
600 |
(49 |
) |
25 |
0 |
(24 |
) | |||||||||||||||||||||||||||
DBL |
ION platform Finance SA |
5.000 |
Quarterly |
06/20/2031 |
10.863 |
EUR |
1,900 |
(473 |
) |
46 |
0 |
(427 |
) | |||||||||||||||||||||||||
DUB |
Eskom « |
4.650 |
Quarterly |
06/30/2029 |
— |
¨ |
$ |
2,475 |
0 |
127 |
127 |
0 |
||||||||||||||||||||||||||
Petroleos Mexicanos « |
4.750 |
Monthly |
07/06/2026 |
— |
¨ |
59 |
0 |
0 |
0 |
0 |
||||||||||||||||||||||||||||
GST |
Nissan Motor Co. Ltd. |
1.000 |
Quarterly |
12/20/2030 |
2.400 |
JPY |
20,000 |
(10 |
) |
3 |
0 |
(7 |
) | |||||||||||||||||||||||||
Petroleos Mexicanos |
1.000 |
Quarterly |
12/20/2028 |
1.573 |
$ |
800 |
(155 |
) |
144 |
0 |
(11 |
) | ||||||||||||||||||||||||||
JPM |
ION platform Finance SA |
5.000 |
Quarterly |
06/20/2030 |
9.785 |
EUR |
200 |
(34 |
) |
1 |
0 |
(33 |
) | |||||||||||||||||||||||||
ION platform Finance SA |
5.000 |
Quarterly |
06/20/2031 |
10.863 |
600 |
(144 |
) |
9 |
0 |
(135 |
) | |||||||||||||||||||||||||||
Israel Government International Bonds |
1.000 |
Quarterly |
06/20/2030 |
0.445 |
$ |
100 |
(1 |
) |
3 |
2 |
0 |
|||||||||||||||||||||||||||
Nissan Motor Co. Ltd. |
1.000 |
Quarterly |
12/20/2030 |
2.400 |
JPY |
20,000 |
(10 |
) |
3 |
0 |
(7 |
) | ||||||||||||||||||||||||||
Petroleos Mexicanos |
1.000 |
Quarterly |
12/20/2030 |
2.019 |
$ |
900 |
(70 |
) |
34 |
0 |
(36 |
) | ||||||||||||||||||||||||||
MYC |
Colombia Government International Bonds |
1.000 |
Quarterly |
06/20/2036 |
2.387 |
4,340 |
(598 |
) |
151 |
0 |
(447 |
) | ||||||||||||||||||||||||||
$ |
(2,693 |
) |
$ |
783 |
$ |
133 |
$ |
(2,043 |
) | |||||||||||||||||||||||||||||
See Accompanying Notes |
ANNUAL REPORT |
| |
JUNE 30, 2026 |
59 |
Schedule of Investments |
PIMCO Corporate & Income Strategy Fund |
(Cont.) |
TOTAL RETURN SWAPS ON SECURITIES
Counterparty |
Pay/Receive (5) |
Underlying Reference |
# of Shares |
Financing Rate |
Payment Frequency |
Maturity Date |
Notional Amount |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Swap Agreements, at Value |
||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||
FAR |
Pay |
NVIDIA Corp. |
4,345 |
5.660% (SOFR plus a specified spread) |
Maturity |
07/29/2026 |
$ |
837 |
$ |
0 |
$ |
(33 |
) |
$ |
0 |
$ |
(33 |
) | ||||||||||||||||
Total Swap Agreements |
$ |
(2,693 |
) |
$ |
750 |
$ |
133 |
$ |
(2,076 |
) | ||||||||||||||||||||||||
FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged/(received) as of June 30, 2026:
Financial Derivative Assets |
Financial Derivative Liabilities |
|||||||||||||||||||||||||||||||||||||||||||||||
Counterparty |
Forward Foreign Currency Contracts |
Purchased Options |
Swap Agreements |
Total Over the Counter |
Forward Foreign Currency Contracts |
Written Options |
Swap Agreements |
Total Over the Counter |
Net Market Value of OTC Derivatives |
Collateral Pledged/ (Received) |
Net Exposure (6) |
|||||||||||||||||||||||||||||||||||||
BOA |
$ |
9 |
$ |
0 |
$ |
0 |
$ |
9 |
$ |
(644 |
) |
$ |
0 |
$ |
(275 |
) |
$ |
(919 |
) |
$ |
(910 |
) |
$ |
725 |
$ |
(185 |
) | |||||||||||||||||||||
BPS |
286 |
0 |
0 |
286 |
(50 |
) |
0 |
(114 |
) |
(164 |
) |
122 |
(260 |
) |
(138 |
) | ||||||||||||||||||||||||||||||||
BRC |
73 |
0 |
0 |
73 |
(91 |
) |
0 |
(53 |
) |
(144 |
) |
(71 |
) |
0 |
(71 |
) | ||||||||||||||||||||||||||||||||
BSH |
1 |
0 |
0 |
1 |
(646 |
) |
0 |
0 |
(646 |
) |
(645 |
) |
0 |
(645 |
) | |||||||||||||||||||||||||||||||||
BSS |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
705 |
705 |
|||||||||||||||||||||||||||||||||||||
CBK |
53 |
0 |
4 |
57 |
(1,003 |
) |
0 |
(498 |
) |
(1,501 |
) |
(1,444 |
) |
1,193 |
(251 |
) | ||||||||||||||||||||||||||||||||
DBL |
0 |
0 |
0 |
0 |
0 |
0 |
(427 |
) |
(427 |
) |
(427 |
) |
0 |
(427 |
) | |||||||||||||||||||||||||||||||||
DUB |
58 |
0 |
127 |
185 |
(35 |
) |
0 |
0 |
(35 |
) |
150 |
0 |
150 |
|||||||||||||||||||||||||||||||||||
FAR |
204 |
0 |
0 |
204 |
(2 |
) |
0 |
(33 |
) |
(35 |
) |
169 |
(260 |
) |
(91 |
) | ||||||||||||||||||||||||||||||||
GLM |
22 |
0 |
0 |
22 |
(132 |
) |
0 |
0 |
(132 |
) |
(110 |
) |
266 |
156 |
||||||||||||||||||||||||||||||||||
GST |
0 |
0 |
0 |
0 |
0 |
0 |
(18 |
) |
(18 |
) |
(18 |
) |
0 |
(18 |
) | |||||||||||||||||||||||||||||||||
JPM |
14 |
0 |
2 |
16 |
(9 |
) |
0 |
(211 |
) |
(220 |
) |
(204 |
) |
261 |
57 |
|||||||||||||||||||||||||||||||||
MBC |
205 |
0 |
0 |
205 |
(25 |
) |
0 |
0 |
(25 |
) |
180 |
0 |
180 |
|||||||||||||||||||||||||||||||||||
MYC |
0 |
0 |
0 |
0 |
0 |
0 |
(447 |
) |
(447 |
) |
(447 |
) |
639 |
192 |
||||||||||||||||||||||||||||||||||
SCX |
1 |
0 |
0 |
1 |
0 |
0 |
0 |
0 |
1 |
0 |
1 |
|||||||||||||||||||||||||||||||||||||
SOG |
2,973 |
0 |
0 |
2,973 |
(544 |
) |
0 |
0 |
(544 |
) |
2,429 |
(2,420 |
) |
9 |
||||||||||||||||||||||||||||||||||
SSB |
52 |
0 |
0 |
52 |
(47 |
) |
0 |
0 |
(47 |
) |
5 |
0 |
5 |
|||||||||||||||||||||||||||||||||||
UAG |
0 |
0 |
0 |
0 |
(504 |
) |
0 |
0 |
(504 |
) |
(504 |
) |
431 |
(73 |
) | |||||||||||||||||||||||||||||||||
Total Over the Counter |
$ |
3,951 |
$ |
0 |
$ |
133 |
$ |
4,084 |
$ |
(3,732 |
) |
$ |
0 |
$ |
(2,076 |
) |
$ |
(5,808 |
) |
|||||||||||||||||||||||||||||
(q) |
Securities with an aggregate market value of $4,221 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of June 30, 2026. |
¨ |
Implied credit spread is not available due to significant unobservable inputs being used in the fair valuation. See Note 3, Investment Valuation and Fair Value Measurements, in the Notes to Financial Statements for more information. |
(1) |
If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
(2) |
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
(3) |
The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
(4) |
The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the underlying referenced instrument’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
(5) |
Receive represents that the Fund receives payments for any positive net return on the underlying reference. The Fund makes payments for any negative net return on such underlying reference. Pay represents that the Fund receives payments for any negative net return on the underlying reference. The Fund makes payments for any positive net return on such underlying reference. |
(6) |
Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information. |
60 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS
The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 7, Principal and Other Risks, in the Notes to Financial Statements on risks of the Fund.
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of June 30, 2026:
Derivatives not accounted for as hedging instruments |
||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Exchange Contracts |
Interest Rate Contracts |
Total |
|||||||||||||||||||
Financial Derivative Instruments - Assets |
||||||||||||||||||||||||
Exchange-traded or centrally cleared |
||||||||||||||||||||||||
Swap Agreements |
$ |
0 |
$ |
26 |
$ |
0 |
$ |
0 |
$ |
1,717 |
$ |
1,743 |
||||||||||||
Over the counter |
||||||||||||||||||||||||
Forward Foreign Currency Contracts |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
3,951 |
$ |
0 |
$ |
3,951 |
||||||||||||
Swap Agreements |
0 |
133 |
0 |
0 |
0 |
133 |
||||||||||||||||||
$ |
0 |
$ |
133 |
$ |
0 |
$ |
3,951 |
$ |
0 |
$ |
4,084 |
|||||||||||||
$ |
0 |
$ |
159 |
$ |
0 |
$ |
3,951 |
$ |
1,717 |
$ |
5,827 |
|||||||||||||
Financial Derivative Instruments - Liabilities |
||||||||||||||||||||||||
Exchange-traded or centrally cleared |
||||||||||||||||||||||||
Swap Agreements |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
2,786 |
$ |
2,786 |
||||||||||||
Over the counter |
||||||||||||||||||||||||
Forward Foreign Currency Contracts |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
3,732 |
$ |
0 |
$ |
3,732 |
||||||||||||
Swap Agreements |
0 |
2,043 |
33 |
0 |
0 |
2,076 |
||||||||||||||||||
$ |
0 |
$ |
2,043 |
$ |
33 |
$ |
3,732 |
$ |
0 |
$ |
5,808 |
|||||||||||||
$ |
0 |
$ |
2,043 |
$ |
33 |
$ |
3,732 |
$ |
2,786 |
$ |
8,594 |
|||||||||||||
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended June 30, 2026:
Derivatives not accounted for as hedging instruments |
||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Exchange Contracts |
Interest Rate Contracts |
Total |
|||||||||||||||||||
Net Realized Gain (Loss) on Financial Derivative Instruments |
||||||||||||||||||||||||
Exchange-traded or centrally cleared |
||||||||||||||||||||||||
Futures |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
(60 |
) |
$ |
(60 |
) | ||||||||||
Swap Agreements |
0 |
447 |
0 |
0 |
237 |
684 |
||||||||||||||||||
$ |
0 |
$ |
447 |
$ |
0 |
$ |
0 |
$ |
177 |
$ |
624 |
|||||||||||||
Over the counter |
||||||||||||||||||||||||
Forward Foreign Currency Contracts |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
221 |
$ |
0 |
$ |
221 |
||||||||||||
Written Options |
0 |
0 |
0 |
112 |
0 |
112 |
||||||||||||||||||
Swap Agreements |
0 |
240 |
0 |
0 |
0 |
240 |
||||||||||||||||||
$ |
0 |
$ |
240 |
$ |
0 |
$ |
333 |
$ |
0 |
$ |
573 |
|||||||||||||
$ |
0 |
$ |
687 |
$ |
0 |
$ |
333 |
$ |
177 |
$ |
1,197 |
|||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
||||||||||||||||||||||||
Exchange-traded or centrally cleared |
||||||||||||||||||||||||
Swap Agreements |
$ |
0 |
$ |
70 |
$ |
0 |
$ |
0 |
$ |
(13,594 |
) |
$ |
(13,524 |
) | ||||||||||
Over the counter |
||||||||||||||||||||||||
Forward Foreign Currency Contracts |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
3,876 |
$ |
0 |
$ |
3,876 |
||||||||||||
Swap Agreements |
0 |
523 |
(33 |
) |
0 |
0 |
490 |
|||||||||||||||||
$ |
0 |
$ |
523 |
$ |
(33 |
) |
$ |
3,876 |
$ |
0 |
$ |
4,366 |
||||||||||||
$ |
0 |
$ |
593 |
$ |
(33 |
) |
$ |
3,876 |
$ |
(13,594 |
) |
$ |
(9,158 |
) | ||||||||||
See Accompanying Notes |
ANNUAL REPORT |
| |
JUNE 30, 2026 |
61 |
Schedule of Investments |
PIMCO Corporate & Income Strategy Fund |
(Cont.) |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2026 in valuing the Fund’s assets and liabilities:
Category and Subcategory |
Level 1 |
Level 2 |
Level 3 |
Fair Value at 06/30/2026 |
||||||||||||
Investments in Securities, at Value |
||||||||||||||||
Loan Participations and Assignments |
$ |
0 |
$ |
233,266 |
$ |
79,113 |
$ |
312,379 |
||||||||
Corporate Bonds & Notes |
||||||||||||||||
Banking & Finance |
0 |
67,338 |
0 |
67,338 |
||||||||||||
Industrials |
0 |
216,361 |
15,268 |
231,629 |
||||||||||||
Utilities |
0 |
30,089 |
145 |
30,234 |
||||||||||||
Convertible Bonds & Notes |
||||||||||||||||
Industrials |
0 |
22,609 |
0 |
22,609 |
||||||||||||
Municipal Bonds & Notes |
||||||||||||||||
Michigan |
0 |
1,862 |
0 |
1,862 |
||||||||||||
West Virginia |
0 |
4,449 |
0 |
4,449 |
||||||||||||
U.S. Government Agencies |
0 |
28,525 |
5,349 |
33,874 |
||||||||||||
U.S. Treasury Obligations |
0 |
1,407 |
0 |
1,407 |
||||||||||||
Non-Agency Mortgage-Backed Securities |
0 |
46,169 |
0 |
46,169 |
||||||||||||
Asset-Backed Securities |
||||||||||||||||
Automobile ABS Other |
0 |
2,436 |
0 |
2,436 |
||||||||||||
Home Equity Other |
0 |
29,499 |
0 |
29,499 |
||||||||||||
Home Equity Sequential |
0 |
1,450 |
0 |
1,450 |
||||||||||||
Whole Loan Collateral |
0 |
22,259 |
0 |
22,259 |
||||||||||||
Other ABS |
0 |
6,538 |
2,248 |
8,786 |
||||||||||||
Sovereign Issues |
0 |
98,308 |
0 |
98,308 |
||||||||||||
Common Stocks |
||||||||||||||||
Communication Services |
3,151 |
0 |
2,982 |
6,133 |
||||||||||||
Consumer Discretionary |
0 |
0 |
16 |
16 |
||||||||||||
Financials |
8,540 |
6,789 |
0 |
15,329 |
||||||||||||
Industrials |
0 |
0 |
10,766 |
10,766 |
||||||||||||
Information Technology |
869 |
0 |
0 |
869 |
||||||||||||
Real Estate |
269 |
0 |
0 |
269 |
||||||||||||
Warrants |
||||||||||||||||
Communication Services |
0 |
0 |
1,321 |
1,321 |
||||||||||||
Preferred Securities |
||||||||||||||||
Banking & Finance |
0 |
3,086 |
10,361 |
13,447 |
||||||||||||
Industrials |
0 |
2,210 |
2,316 |
4,526 |
||||||||||||
Real Estate Investment Trusts |
||||||||||||||||
Real Estate |
2,059 |
0 |
0 |
2,059 |
||||||||||||
Category and Subcategory |
Level 1 |
Level 2 |
Level 3 |
Fair Value at 06/30/2026 |
||||||||||||
Short-Term Instruments |
||||||||||||||||
Mutual Funds |
$ |
103 |
$ |
0 |
$ |
0 |
$ |
103 |
||||||||
Egypt Treasury Bills |
0 |
1,693 |
0 |
1,693 |
||||||||||||
Nigeria Treasury Bills |
0 |
18,922 |
0 |
18,922 |
||||||||||||
U.S. Treasury Bills |
0 |
4,241 |
0 |
4,241 |
||||||||||||
$ |
14,991 |
$ |
849,506 |
$ |
129,885 |
$ |
994,382 |
|||||||||
Investments in Affiliates, at Value |
||||||||||||||||
Short-Term Instruments |
||||||||||||||||
Central Funds Used for Cash Management Purposes |
$ |
76,422 |
$ |
0 |
$ |
0 |
$ |
76,422 |
||||||||
Total Investments |
$ |
91,413 |
$ |
849,506 |
$ |
129,885 |
$ |
1,070,804 |
||||||||
Financial Derivative Instruments - Assets |
||||||||||||||||
Exchange-traded or centrally cleared |
0 |
1,743 |
0 |
1,743 |
||||||||||||
Over the counter |
0 |
3,957 |
127 |
4,084 |
||||||||||||
$ |
0 |
$ |
5,700 |
$ |
127 |
$ |
5,827 |
|||||||||
Financial Derivative Instruments - Liabilities |
||||||||||||||||
Exchange-traded or centrally cleared |
0 |
(2,786 |
) |
0 |
(2,786 |
) | ||||||||||
Over the counter |
0 |
(5,808 |
) |
0 |
(5,808 |
) | ||||||||||
$ |
0 |
$ |
(8,594 |
) |
$ |
0 |
$ |
(8,594 |
) | |||||||
Total Financial Derivative Instruments |
$ |
0 |
$ |
(2,894 |
) |
$ |
127 |
$ |
(2,767 |
) | ||||||
Totals |
$ |
91,413 |
$ |
846,612 |
$ |
130,012 |
$ |
1,068,037 |
||||||||
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Fund during the period ended June 30, 2026:
Category and Subcategory |
Beginning Balance at 06/30/2025 |
Net Purchases (1) |
Net Sales/ Settlements (1) |
Accrued Discounts/ (Premiums) |
Realized Gain/(Loss) |
Net Change in Unrealized Appreciation/ (Depreciation) (2) |
Transfers into Level 3 |
Transfers out of Level 3 |
Ending Balance at 06/30/2026 |
Net Change in Unrealized Appreciation/ (Depreciation) on Investments Held at 06/30/2026 (2) |
||||||||||||||||||||||||||||||
Investments in Securities, at Value |
||||||||||||||||||||||||||||||||||||||||
Loan Participations and Assignments |
$ |
56,725 |
$ |
25,085 |
$ |
(24,973 |
) |
$ |
252 |
$ |
118 |
$ |
(2,035 |
) |
$ |
23,941 |
$ |
0 |
$ |
79,113 |
$ |
(183 |
) | |||||||||||||||||
Corporate Bonds & Notes |
||||||||||||||||||||||||||||||||||||||||
Banking & Finance |
301 |
0 |
(5 |
) |
0 |
0 |
17 |
0 |
(313 |
) |
0 |
0 |
||||||||||||||||||||||||||||
Industrials |
13,912 |
1,225 |
(1,335 |
) |
18 |
0 |
1,448 |
0 |
0 |
15,268 |
1,094 |
|||||||||||||||||||||||||||||
Utilities |
0 |
111 |
0 |
(3 |
) |
0 |
37 |
0 |
0 |
145 |
37 |
|||||||||||||||||||||||||||||
U.S. Government Agencies |
4,786 |
0 |
(144 |
) |
29 |
47 |
631 |
0 |
0 |
5,349 |
628 |
|||||||||||||||||||||||||||||
Asset-Backed Securities |
||||||||||||||||||||||||||||||||||||||||
Other ABS |
2,729 |
0 |
0 |
5 |
(1,187 |
) |
701 |
0 |
0 |
2,248 |
(347 |
) | ||||||||||||||||||||||||||||
Common Stocks |
||||||||||||||||||||||||||||||||||||||||
Communication Services |
9,830 |
0 |
(8,723 |
) |
0 |
4,629 |
(2,754 |
) |
0 |
0 |
2,982 |
2,830 |
||||||||||||||||||||||||||||
Consumer Discretionary |
16 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
16 |
0 |
||||||||||||||||||||||||||||||
Financials (3) |
5,975 |
0 |
(6,123 |
) |
0 |
(6,417 |
) |
6,565 |
0 |
0 |
0 |
0 |
||||||||||||||||||||||||||||
Health Care |
22,039 |
0 |
(19,709 |
) |
0 |
(689 |
) |
(1,641 |
) |
0 |
0 |
0 |
0 |
|||||||||||||||||||||||||||
Industrials |
9,037 |
234 |
0 |
0 |
0 |
1,495 |
0 |
0 |
10,766 |
1,496 |
||||||||||||||||||||||||||||||
Real Estate (4) |
13 |
0 |
0 |
0 |
0 |
256 |
0 |
(269 |
) |
0 |
0 |
|||||||||||||||||||||||||||||
Warrants |
||||||||||||||||||||||||||||||||||||||||
Communication Services |
1,925 |
702 |
(1,735 |
) |
0 |
458 |
(29 |
) |
0 |
0 |
1,321 |
619 |
||||||||||||||||||||||||||||
Financials |
1 |
0 |
(7 |
) |
0 |
(4,154 |
) |
4,160 |
0 |
0 |
0 |
0 |
||||||||||||||||||||||||||||
62 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
Category and Subcategory |
Beginning Balance at 06/30/2025 |
Net Purchases (1) |
Net Sales/ Settlements (1) |
Accrued Discounts/ (Premiums) |
Realized Gain/(Loss) |
Net Change in Unrealized Appreciation/ (Depreciation) (2) |
Transfers into Level 3 |
Transfers out of Level 3 |
Ending Balance at 06/30/2026 |
Net Change in Unrealized Appreciation/ (Depreciation) on Investments Held at 06/30/2026 (2) |
||||||||||||||||||||||||||||||
Preferred Securities |
||||||||||||||||||||||||||||||||||||||||
Banking & Finance |
$ |
0 |
$ |
9,928 |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
433 |
$ |
0 |
$ |
0 |
$ |
10,361 |
$ |
433 |
||||||||||||||||||||
Industrials |
2,606 |
322 |
0 |
0 |
0 |
(612 |
) |
0 |
0 |
2,316 |
(611 |
) | ||||||||||||||||||||||||||||
$ |
129,895 |
$ |
37,607 |
$ |
(62,754 |
) |
$ |
301 |
$ |
(7,195 |
) |
$ |
8,672 |
$ |
23,941 |
$ |
(582 |
) |
$ |
129,885 |
$ |
5,996 |
||||||||||||||||||
Financial Derivative Instruments |
||||||||||||||||||||||||||||||||||||||||
Over the counter |
$ |
164 |
$ |
0 |
$ |
(2 |
) |
$ |
0 |
$ |
0 |
$ |
(35 |
) |
$ |
0 |
$ |
0 |
$ |
127 |
$ |
(33 |
) | |||||||||||||||||
Totals |
$ |
130,059 |
$ |
37,607 |
$ |
(62,756 |
) |
$ |
301 |
$ |
(7,195 |
) |
$ |
8,637 |
$ |
23,941 |
$ |
(582 |
) |
$ |
130,012 |
$ |
5,963 |
|||||||||||||||||
The following is a summary of significant unobservable inputs used in the fair valuations of assets and liabilities categorized within Level 3 of the fair value hierarchy:
Category and Subcategory |
Ending Balance at 06/30/2026 |
Valuation Technique |
Unobservable Inputs |
(% Unless Noted Otherwise) |
||||||||||||||||
Input Value(s) |
Weighted Average |
|||||||||||||||||||
Investments in Securities, at Value |
||||||||||||||||||||
Loan Participations and Assignments |
$ |
39,704 |
Discounted Cash Flow |
Discount Rate |
6.790-11.323 |
8.624 |
||||||||||||||
4,006 |
Indicative Market Quotation |
Broker Quote |
101.250 |
— |
||||||||||||||||
795 |
Recent Transaction |
Commitment |
99.000-99.500 |
99.313 |
||||||||||||||||
2,673 |
Recent Transaction |
Purchase Price |
99.000 |
— |
||||||||||||||||
3,590 |
Recent Transaction |
Purchase Price |
$ |
100.000 |
— |
|||||||||||||||
28,345 |
Third Party Vendor |
Broker Quote |
57.500-100.125 |
95.447 |
||||||||||||||||
Corporate Bonds & Notes |
||||||||||||||||||||
Industrials |
15,268 |
Comparable Companies / Discounted Cash Flow |
EBITDA Multiple/ Discount Rate X/% |
13.000/10.250 |
— |
|||||||||||||||
Utilities |
145 |
Indicative Market Quotation |
Broker Quote |
EUR |
13.500 |
— |
||||||||||||||
U.S. Government Agencies |
5,349 |
Discounted Cash Flow |
Discount Rate |
9.827 |
— |
|||||||||||||||
Asset-Backed Securities |
||||||||||||||||||||
Other ABS |
2,248 |
Discounted Cash Flow |
Discount Rate |
12.000-20.000 |
18.738 |
|||||||||||||||
Common Stocks |
||||||||||||||||||||
Communication Services |
2,620 |
Indicative Market Quotation |
Broker Quote |
15.125 |
— |
|||||||||||||||
362 |
Reference Instrument |
Liquidity Discount |
14.000 |
— |
||||||||||||||||
Consumer Discretionary |
16 |
Expected Recovery |
Price |
$ |
— |
— |
||||||||||||||
Industrials |
8,575 |
Comparable Companies / Discounted Cash Flow |
EBITDA Multiple/ Discount Rate X/% |
13.000/10.250 |
— |
|||||||||||||||
721 |
Indicative Market Quotation / Recent Transaction |
Broker Quote / Purchase Price $/$ |
3.250/2.000 |
— |
||||||||||||||||
1,470 |
Indicative Market Quotation |
Broker Quote |
$ |
0.656-22.917 |
22.419 |
|||||||||||||||
Warrants |
||||||||||||||||||||
Communication Services |
1,321 |
Other Valuation Techniques (4) |
— |
— |
— |
|||||||||||||||
Preferred Securities |
||||||||||||||||||||
Banking & Finance |
4,209 |
Discounted Cash Flow |
Discount Rate |
11.630 |
— |
|||||||||||||||
6,152 |
Recent transaction |
Purchase Price |
$ |
1.000 |
— |
|||||||||||||||
Industrials |
264 |
Comparable Companies |
Revenue/ EBITDA Multiple X |
4.625/18.000 |
— |
|||||||||||||||
2,052 |
Discounted Cash Flow |
Discount Rate |
26.880 |
— |
||||||||||||||||
Financial Derivative Instruments |
||||||||||||||||||||
Over the counter |
127 |
Indicative Market Quotation |
Broker Quote |
0.053-5.109 |
5.100 |
|||||||||||||||
Total |
$ |
130,012 |
||||||||||||||||||
(1) |
Net Purchases and Settlements for Financial Derivative Instruments may include payments made or received upon entering into swap agreements to compensate for differences between the stated terms of the swap agreement and prevailing market conditions. |
(2) |
Any difference between Net Change in Unrealized Appreciation/(Depreciation) and Net Change in Unrealized Appreciation/(Depreciation) on Investments Held at June 30, 2026 may be due to an investment no longer held or categorized as Level 3 at period end. |
(3) |
Sector type updated from Financials to Real Estate since prior fiscal year end. |
(4) |
Includes valuation techniques not defined in the Notes to Financial Statements as securities valued using such techniques are not considered significant to the Fund. |
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 63 |
Schedule of Investments |
PIMCO High Income Fund |
(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
INVESTMENTS IN SECURITIES 125.7% |
||||||||||||
LOAN PARTICIPATIONS AND ASSIGNMENTS 22.2% |
||||||||||||
Altice France SA |
||||||||||||
10.548% (TSFR3M + 3.673%) due 05/31/2031 ~ |
$ |
13,124 |
$ |
13,426 |
||||||||
Clover Holdings 2 LLC |
||||||||||||
TBD% - 4.000% due 12/10/2029 «µ |
909 |
839 |
||||||||||
7.375% (TSFR1M + 3.633%) due 12/09/2031 ~ |
1,347 |
1,289 |
||||||||||
Coreweave Compute Acquisition Co. IV LLC |
||||||||||||
9.661% - 9.732% (TSFR3M + 3.666%) due 05/16/2029 «~ |
4,521 |
4,661 |
||||||||||
Discovery Global Holdings, Inc. |
||||||||||||
6.144% (TSFR1M + 3.644%) due 06/03/2033 ~ |
6,375 |
6,385 |
||||||||||
Finastra USA, Inc. |
||||||||||||
7.746% (TSFR6M + 3.751%) due 09/15/2032 ~ |
4,289 |
3,965 |
||||||||||
10.751% (TSFR6M + 3.751%) due 09/15/2033 «~ |
400 |
352 |
||||||||||
Forward Air Corp. |
||||||||||||
8.163% (TSFR3M + 3.663%) due 12/19/2030 ~ |
1,797 |
1,699 |
||||||||||
Gaia Purchaser, Inc. |
||||||||||||
TBD% due 06/25/2033 « |
500 |
501 |
||||||||||
Gateway Casinos & Entertainment Ltd. |
||||||||||||
9.918% (TSFR3M + 3.668%) due 12/18/2030 ~ |
5,415 |
5,405 |
||||||||||
Ineos U.S. Finance LLC |
||||||||||||
6.894% (TSFR1M + 3.644%) due 02/18/2030 ~ |
2,721 |
2,512 |
||||||||||
J&J Ventures Gaming LLC |
||||||||||||
8.758% (TSFR1M + 3.644%) due 04/26/2028 «~ |
1,248 |
1,248 |
||||||||||
Lealand Finance Co. BV |
||||||||||||
6.758% (TSFR1M + 3.644%) due 06/30/2027 ~ |
105 |
102 |
||||||||||
Lealand Finance Co. BV (4.758% Cash and 3.000% PIK) |
||||||||||||
7.758% (TSFR1M + 3.644%) due 12/31/2027 ~(c) |
598 |
578 |
||||||||||
Mercury Aggregator LP |
||||||||||||
TBD% due 04/03/2027 « |
2,677 |
0 |
||||||||||
MPH Acquisition Holdings LLC |
||||||||||||
7.413% (TSFR3M + 3.663%) due 12/31/2030 ~ |
762 |
765 |
||||||||||
8.263% (TSFR3M + 3.663%) due 12/31/2030 ~ |
7,689 |
6,790 |
||||||||||
Newfold Digital Holdings Group, Inc. |
||||||||||||
9.364% (TSFR1M + 3.612%) due 04/30/2029 ~ |
72 |
58 |
||||||||||
Nscale AS |
||||||||||||
TBD% - 8.664% (TSFR3M + 3.670%) due 08/23/2032 «~µ |
2,981 |
2,981 |
||||||||||
Peraton Corp. |
||||||||||||
7.513% (TSFR3M + 3.663%) due 02/01/2028 ~ |
20,731 |
18,762 |
||||||||||
11.516% (TSFR3M + 3.666%) due 02/01/2029 ~ |
2,132 |
1,450 |
||||||||||
Polaris Newco LLC |
||||||||||||
6.150% (EUR003M + 2.150%) due 06/02/2028 ~ |
EUR |
2,992 |
2,971 |
|||||||||
Poseidon Bidco SASU |
||||||||||||
7.504% due 03/13/2030 |
3,000 |
994 |
||||||||||
Promotora de Informaciones SA |
||||||||||||
7.674% (EUR003M + 2.168%) due 12/31/2029 ~ |
15,537 |
17,353 |
||||||||||
QXO, Inc. |
||||||||||||
TBD% due 04/30/2032 |
$ |
1,600 |
1,598 |
|||||||||
SCUR-Alpha 1503 GmbH |
||||||||||||
9.163% (TSFR3M + 3.663%) due 04/01/2030 ~ |
4,988 |
4,356 |
||||||||||
Steenbok Lux Finco 2 SARL |
||||||||||||
1TBD% due 12/31/2028 |
EUR |
20,736 |
9,594 |
|||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
Stepstone Group Midco 2 GmbH |
||||||||||||
6.885% (EUR006M + 2.459%) due 04/26/2032 ~ |
EUR |
10,600 |
$ |
9,943 |
||||||||
8.176% - 8.179% (TSFR6M + 3.679%) due 12/19/2031 ~ |
$ |
1,485 |
1,204 |
|||||||||
Stormlight |
||||||||||||
8.370% due 05/13/2030 «~ |
3,488 |
3,488 |
||||||||||
Subcalidora 2 |
||||||||||||
8.041% (EUR003M + 2.291%) due 08/14/2029 «~ |
EUR |
7,000 |
7,955 |
|||||||||
Syniverse Holdings, Inc. |
||||||||||||
10.732% (TSFR3M + 3.732%) due 05/13/2027 ~ |
$ |
19,094 |
16,653 |
|||||||||
U.S. Renal Care, Inc. |
||||||||||||
8.758% (TSFR1M + 3.644%) due 06/28/2028 ~ |
30,252 |
29,825 |
||||||||||
Unicorn Bay |
||||||||||||
13.000% due 12/31/2026 « |
HKD |
33,539 |
4,330 |
|||||||||
Virgin Media Bristol LLC |
||||||||||||
6.967% (TSFR6M + 3.692%) due 03/31/2031 ~ |
$ |
900 |
801 |
|||||||||
6.990% (TSFR1M + 3.633%) due 01/31/2029 ~ |
2,100 |
2,017 |
||||||||||
Westmoreland Coal Co. |
||||||||||||
8.000% due 03/15/2029 |
2,430 |
1,397 |
||||||||||
Total Loan Participations and Assignments (Cost $205,977) |
188,247 |
|||||||||||
CORPORATE BONDS & NOTES 45.0% |
||||||||||||
BANKING & FINANCE 9.3% |
||||||||||||
Alamo Re Ltd. |
||||||||||||
14.289% (T-BILL 1MO + 10.500%) due 06/07/2028 ~ |
900 |
899 |
||||||||||
Antares Holdings LP |
||||||||||||
6.350% due 10/23/2029 (m) |
500 |
498 |
||||||||||
Armor Holdco, Inc. |
||||||||||||
8.500% due 11/15/2029 (m) |
1,900 |
1,913 |
||||||||||
Atlantic Marine Corps Communities LLC |
||||||||||||
5.383% due 02/15/2048 (m) |
3,925 |
3,189 |
||||||||||
Banco Mercantil del Norte SA |
||||||||||||
8.000% due 01/24/2033 •(j)(k) |
1,900 |
1,904 |
||||||||||
8.450% due 06/24/2036 •(j)(k) |
1,900 |
1,905 |
||||||||||
Blue Owl Capital Corp. |
||||||||||||
6.450% due 09/15/2028 (m) |
800 |
810 |
||||||||||
BOI Finance BV |
||||||||||||
7.500% due 02/16/2027 (m) |
EUR |
3,000 |
3,497 |
|||||||||
Cape Lookout Re Ltd. |
||||||||||||
8.770% (FHMMUSTF + 5.250%) due 03/21/2033 ~ |
$ |
250 |
248 |
|||||||||
9.520% (FHMMUSTF + 6.000%) due 03/21/2033 ~ |
250 |
250 |
||||||||||
12.226% (GSMMUSTF + 8.702%) due 04/05/2027 ~ |
900 |
898 |
||||||||||
Commonwealth RE Ltd. |
||||||||||||
7.407% (JMMMUSTF + 3.857%) due 07/08/2030 ~ |
3,700 |
3,701 |
||||||||||
Credicorp Capital Sociedad Titulizadora SA |
||||||||||||
9.700% due 03/05/2045 |
PEN |
1,000 |
313 |
|||||||||
Credit Suisse AG AT1 Claim |
$ |
600 |
212 |
|||||||||
East Lane Re VII Ltd. |
||||||||||||
12.050% (BRMMUSDF + 8.500%) due 03/31/2032 ~ |
250 |
251 |
||||||||||
Ford Motor Credit Co. LLC |
||||||||||||
5.667% (SOFRRATE + 2.030%) due 03/20/2028 ~(m) |
900 |
911 |
||||||||||
Gateway Re Ltd. |
||||||||||||
5.550% (BRMMUSDF + 2.000%) due 07/06/2029 ~ |
850 |
850 |
||||||||||
GLP Capital LP/GLP Financing II, Inc. |
||||||||||||
5.625% due 03/01/2036 (m) |
1,400 |
1,373 |
||||||||||
Golden Bear Re Ltd. |
||||||||||||
13.289% (T-BILL 1MO + 9.500%) due 03/08/2032 ~ |
250 |
252 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
13.300% (JMMMUSTF + 9.750%) due 01/08/2029 ~ |
$ |
470 |
$ |
482 |
||||||||
Greengrove RE Ltd. |
||||||||||||
11.270% (BNMMDTSC + 7.750%) due 04/08/2032 ~ |
250 |
255 |
||||||||||
GSPA Monetization Trust |
||||||||||||
6.422% due 10/09/2029 (m) |
2,510 |
2,513 |
||||||||||
Hestia Re Ltd. |
||||||||||||
3.620% (BNMMDTSC + 0.100%) due 04/22/2029 ~ |
27 |
15 |
||||||||||
Horizon Mutual Holdings, Inc. |
||||||||||||
6.200% due 11/15/2034 |
400 |
389 |
||||||||||
IIFL Finance Ltd. |
||||||||||||
7.600% due 09/10/2029 |
400 |
402 |
||||||||||
Integrity RE III Ltd. |
||||||||||||
29.020% (FHMMUSTF + 25.500%) due 06/06/2027 ~ |
250 |
262 |
||||||||||
ION Platform Finance SARL |
||||||||||||
6.500% due 09/30/2030 (m) |
EUR |
1,400 |
1,290 |
|||||||||
6.500% due 09/30/2030 |
100 |
92 |
||||||||||
6.875% due 09/30/2032 (m) |
1,500 |
1,280 |
||||||||||
7.875% due 05/01/2029 |
5,810 |
6,009 |
||||||||||
ION Platform Finance U.S., Inc. |
||||||||||||
7.875% due 09/30/2032 (m) |
$ |
1,600 |
1,161 |
|||||||||
ION Platform Finance U.S., Inc./ION Platform Finance SARL |
||||||||||||
8.750% due 05/01/2029 (m) |
2,300 |
2,054 |
||||||||||
9.000% due 08/01/2029 (m) |
2,490 |
2,218 |
||||||||||
9.500% due 05/30/2029 (m) |
4,900 |
4,476 |
||||||||||
Iron Mountain, Inc. |
||||||||||||
6.250% due 01/15/2035 |
1,700 |
1,709 |
||||||||||
Long Point Re IV Ltd. |
||||||||||||
7.289% (T-BILL 1MO + 3.500%) due 06/01/2034 ~ |
250 |
250 |
||||||||||
Lower Ferry Re Ltd. |
||||||||||||
8.156% (MSMMUSTF + 4.646%) due 07/08/2030 ~ |
600 |
600 |
||||||||||
9.014% (MSMMUSTF + 5.504%) due 07/08/2030 ~ |
4,650 |
4,651 |
||||||||||
Luca RE Ltd. |
||||||||||||
10.800% (JMMMUSTF + 7.250%) due 07/22/2031 ~ |
350 |
364 |
||||||||||
Mayflower Re Ltd. |
||||||||||||
8.565% (FHMMUSTF + 5.045%) due 07/08/2030 ~ |
1,000 |
1,000 |
||||||||||
10.033% (FHMMUSTF + 6.513%) due 07/08/2030 ~ |
7,000 |
7,005 |
||||||||||
Merna Reinsurance II Ltd. |
||||||||||||
13.991% (GSMMUSTI + 10.470%) due 07/07/2030 ~ |
250 |
250 |
||||||||||
Nature Coast Re Ltd. |
||||||||||||
11.789% (T-BILL 3MO + 8.000%) due 02/26/2030 ~ |
250 |
252 |
||||||||||
13.271% (GSMMUSTI + 9.750%) due 04/10/2033 ~ |
250 |
260 |
||||||||||
Polestar Re Ltd. |
||||||||||||
14.140% (BRMMUSDF + 10.590%) due 01/07/2028 ~ |
300 |
313 |
||||||||||
16.800% (BRMMUSDF + 13.250%) due 01/07/2027 ~ |
900 |
924 |
||||||||||
Purple Re Ltd. |
||||||||||||
10.050% (JMMMUSTF + 6.500%) due 06/07/2033 ~ |
250 |
250 |
||||||||||
Quercus II Re DAC |
||||||||||||
13.324% (EUR003M + 11.000%) due 01/07/2031 ~ |
EUR |
250 |
290 |
|||||||||
Recoletos RE DAC |
||||||||||||
5.289% (T-BILL 3MO + 1.500%) due 07/06/2032 ~ |
$ |
250 |
250 |
|||||||||
Sanders Re III Ltd. |
||||||||||||
15.870% (BRMMUSDF + 12.320%) due 04/09/2029 ~ |
804 |
264 |
||||||||||
Stingray Compute LLC |
||||||||||||
6.000% due 06/15/2031 |
100 |
100 |
||||||||||
64 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
Sutter Re Ltd. |
||||||||||||
7.289% (T-BILL 3MO + 3.500%) due 06/07/2034 ~ |
$ |
250 |
$ |
250 |
||||||||
Titanium 2l Bondco SARL |
||||||||||||
6.250% due 01/14/2031 |
EUR |
8,545 |
1,430 |
|||||||||
Torrey Pines Re Ltd. |
||||||||||||
9.586% (JMMMUSTF + 6.036%) due 06/07/2032 ~ |
$ |
250 |
257 |
|||||||||
10.656% (JMMMUSTF + 7.106%) due 06/07/2032 ~ |
250 |
258 |
||||||||||
Uniti Group LP/Uniti Fiber Holdings, Inc./CSL Capital LLC |
||||||||||||
6.000% due 01/15/2030 (m) |
8,463 |
8,274 |
||||||||||
Ursa Re II Ltd. |
||||||||||||
11.260% (MSMMUSTF + 7.750%) due 06/07/2028 ~ |
250 |
257 |
||||||||||
Ursa Re Ltd. |
||||||||||||
11.021% (GSMMUSTI + 7.500%) due 02/22/2028 ~ |
400 |
413 |
||||||||||
12.800% (JMMMUSTF + 9.250%) due 12/07/2028 ~ |
1,000 |
1,019 |
||||||||||
Winston RE Ltd. |
||||||||||||
15.210% (BNMMDTSC + 11.690%) due 02/26/2031 ~ |
700 |
714 |
||||||||||
78,376 |
||||||||||||
INDUSTRIALS 31.1% |
||||||||||||
ADI Escrow Issuer LLC |
||||||||||||
7.125% due 07/15/2034 |
200 |
204 |
||||||||||
Altice France Lux 3/Altice Holdings 1 |
||||||||||||
10.000% due 01/15/2033 (m) |
949 |
935 |
||||||||||
Altice France SA |
||||||||||||
6.500% due 04/15/2032 |
401 |
388 |
||||||||||
6.875% due 10/15/2030 (m) |
540 |
524 |
||||||||||
9.500% due 11/01/2029 (m) |
762 |
774 |
||||||||||
12.875% due 11/01/2029 |
EUR |
331 |
388 |
|||||||||
ams-OSRAM AG |
||||||||||||
7.250% due 05/31/2032 |
710 |
837 |
||||||||||
10.500% due 03/30/2029 (m) |
849 |
1,034 |
||||||||||
APLD ComputeCo 3 LLC |
||||||||||||
7.000% due 06/15/2031 |
$ |
800 |
799 |
|||||||||
Aston Martin Capital Holdings Ltd. |
||||||||||||
10.000% due 03/31/2029 (m) |
700 |
545 |
||||||||||
Australian Metcoal Financing Pty. Ltd. |
||||||||||||
6.250% due 10/22/2031 (m) |
600 |
611 |
||||||||||
6.750% due 04/22/2034 (m) |
600 |
619 |
||||||||||
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. |
||||||||||||
8.000% due 02/15/2031 (m) |
400 |
404 |
||||||||||
Beazer Homes USA, Inc. |
||||||||||||
8.000% due 01/15/2032 |
250 |
251 |
||||||||||
Beignet Investor LLC |
||||||||||||
6.581% due 05/30/2049 (m) |
16,360 |
16,698 |
||||||||||
Central Parent LLC/CDK Global II LLC/CDK Financing Co., Inc. |
||||||||||||
8.000% due 06/15/2029 |
5,700 |
3,705 |
||||||||||
Central Parent, Inc./CDK Global, Inc. |
||||||||||||
7.250% due 06/15/2029 |
8,150 |
5,298 |
||||||||||
Cerdia Finanz GmbH |
||||||||||||
9.375% due 10/03/2031 |
4,070 |
3,656 |
||||||||||
Cheplapharm Arzneimittel GmbH |
||||||||||||
7.500% due 05/15/2030 (m) |
EUR |
7,900 |
9,368 |
|||||||||
Cogent Communications Group LLC/Cogent Finance, Inc. |
||||||||||||
6.500% due 07/01/2032 |
$ |
3,100 |
2,793 |
|||||||||
7.000% due 06/15/2027 (m) |
10,600 |
10,531 |
||||||||||
CVR Energy, Inc. |
||||||||||||
7.500% due 02/15/2031 (m) |
1,000 |
996 |
||||||||||
DISH DBS Corp. |
||||||||||||
5.250% due 12/01/2026 (m) |
6,650 |
6,583 |
||||||||||
5.750% due 12/01/2028 (m) |
12,150 |
11,780 |
||||||||||
7.750% due 07/01/2026 |
5,500 |
5,500 |
||||||||||
Dorman Products, Inc. |
||||||||||||
6.250% due 06/15/2034 |
100 |
101 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
Ecopetrol SA |
||||||||||||
7.750% due 02/01/2032 (m) |
$ |
14,600 |
$ |
15,297 |
||||||||
ELK Grove Village Property LLC |
||||||||||||
7.500% due 06/15/2031 |
500 |
504 |
||||||||||
Flora Food Management BV |
||||||||||||
6.875% due 07/02/2029 (m) |
EUR |
1,000 |
1,118 |
|||||||||
6.875% due 07/02/2029 |
5,600 |
6,259 |
||||||||||
7.500% due 10/31/2030 |
600 |
684 |
||||||||||
FMC Corp. |
||||||||||||
8.000% due 06/01/2031 |
$ |
200 |
208 |
|||||||||
Ford Motor Co. |
||||||||||||
7.700% due 05/15/2097 (m) |
7,745 |
8,140 |
||||||||||
Gaia Purchaser, Inc. |
||||||||||||
7.625% due 07/15/2033 (b) |
200 |
202 |
||||||||||
General Shopping Investments Ltd. |
||||||||||||
12.000% due 09/20/2026 (j) |
2,500 |
160 |
||||||||||
GSG Bidco Ltd. |
||||||||||||
5.375% due 06/15/2036 |
EUR |
1,100 |
1,248 |
|||||||||
HCA, Inc. |
||||||||||||
7.500% due 11/15/2095 (m) |
$ |
1,746 |
1,889 |
|||||||||
Hybar LLC |
||||||||||||
7.375% due 07/01/2034 |
200 |
201 |
||||||||||
Incora Intermediate II LLC (0.500% PIK) |
||||||||||||
0.500% due 01/31/2030 «(c) |
10,450 |
10,450 |
||||||||||
Incora Top Holdco LLC |
||||||||||||
6.000% due 01/30/2033 «(l) |
7,260 |
11,442 |
||||||||||
Intralot Capital Luxembourg SA |
||||||||||||
6.731% due 10/15/2031 • |
EUR |
1,700 |
1,963 |
|||||||||
6.750% due 10/15/2031 (m) |
5,400 |
6,272 |
||||||||||
JetBlue Airways Corp./JetBlue Loyalty LP |
||||||||||||
9.875% due 09/20/2031 (m) |
$ |
1,613 |
1,463 |
|||||||||
Kronos International, Inc. |
||||||||||||
9.500% due 03/15/2029 (m) |
EUR |
3,000 |
3,382 |
|||||||||
Motion Finco SARL |
||||||||||||
8.375% due 02/15/2032 (m) |
$ |
400 |
338 |
|||||||||
MPH Acquisition Holdings LLC |
||||||||||||
5.750% due 12/31/2030 (m) |
5,200 |
4,342 |
||||||||||
National Mentor Holdings, Inc. |
||||||||||||
10.500% due 12/15/2030 |
300 |
316 |
||||||||||
New Albertsons LP |
||||||||||||
6.570% due 02/23/2028 (m) |
4,021 |
4,047 |
||||||||||
Newfold Digital Holdings Group, Inc. |
||||||||||||
11.750% due 04/30/2029 |
1,403 |
909 |
||||||||||
Nissan Motor Co. Ltd. |
||||||||||||
4.810% due 09/17/2030 (m) |
5,000 |
4,659 |
||||||||||
7.500% due 07/17/2030 (m) |
500 |
516 |
||||||||||
Noble Finance II LLC |
||||||||||||
8.000% due 04/15/2030 (m) |
9,213 |
9,550 |
||||||||||
Ocado Group PLC |
||||||||||||
10.500% due 08/08/2029 (m) |
GBP |
4,272 |
5,883 |
|||||||||
11.000% due 06/15/2030 (m) |
4,250 |
5,954 |
||||||||||
Petroleos de Venezuela SA |
||||||||||||
6.000% due 11/15/2026 ^(d) |
$ |
4,100 |
1,548 |
|||||||||
9.750% due 05/17/2035 ^(d) |
1,900 |
850 |
||||||||||
Petroleos Mexicanos |
||||||||||||
6.750% due 09/21/2047 (m) |
1,098 |
941 |
||||||||||
QXO Building Products, Inc. |
||||||||||||
6.500% due 07/15/2031 |
600 |
612 |
||||||||||
6.875% due 07/15/2034 |
700 |
719 |
||||||||||
Road Michigan Property Owner I LLC |
||||||||||||
7.500% due 03/30/2045 (m) |
20,929 |
20,871 |
||||||||||
Thames Water Super Senior Issuer PLC |
||||||||||||
9.750% due 10/10/2027 |
GBP |
14 |
19 |
|||||||||
9.750% due 10/10/2027 |
3 |
4 |
||||||||||
Topaz Solar Farms LLC |
||||||||||||
4.875% due 09/30/2039 (m) |
$ |
1,754 |
1,557 |
|||||||||
5.750% due 09/30/2039 (m) |
4,274 |
4,211 |
||||||||||
Toucan FinCo Ltd./Toucan FinCo Can, Inc./Toucan FinCo U.S. LLC |
||||||||||||
8.250% due 05/15/2030 (m) |
EUR |
1,400 |
1,465 |
|||||||||
Tutor Perini Corp. |
||||||||||||
6.625% due 07/15/2033 (b) |
$ |
600 |
604 |
|||||||||
U.S. Renal Care, Inc. |
||||||||||||
10.625% due 06/28/2028 |
1,001 |
931 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
Ubisoft Entertainment SA |
||||||||||||
0.878% due 11/24/2027 (m) |
EUR |
1,400 |
$ |
1,416 |
||||||||
Valaris Ltd. |
||||||||||||
8.375% due 04/30/2030 (m) |
$ |
6,811 |
7,076 |
|||||||||
Vale SA |
||||||||||||
0.000% due 12/29/2049 ~(j) |
BRL |
120,000 |
9,330 |
|||||||||
Vedanta Resources Finance II PLC |
||||||||||||
7.000% due 07/13/2032 (b) |
$ |
1,700 |
1,692 |
|||||||||
7.375% due 07/13/2034 (b) |
1,700 |
1,685 |
||||||||||
7.750% due 07/13/2037 (b) |
1,700 |
1,690 |
||||||||||
Viridien |
||||||||||||
8.500% due 10/15/2030 (m) |
EUR |
1,175 |
1,423 |
|||||||||
10.000% due 10/15/2030 (m) |
$ |
2,508 |
2,666 |
|||||||||
VistaJet Malta Finance PLC/Vista Management Holding, Inc. |
||||||||||||
8.750% due 01/15/2032 (m) |
4,100 |
4,065 |
||||||||||
Vmed O2 U.K. Financing I PLC |
||||||||||||
6.750% due 01/15/2033 (m) |
4,000 |
3,391 |
||||||||||
VZ Secured Financing BV |
||||||||||||
7.500% due 01/15/2033 (m) |
1,400 |
1,341 |
||||||||||
Wayfair LLC |
||||||||||||
7.750% due 09/15/2030 (m) |
1,100 |
1,157 |
||||||||||
263,982 |
||||||||||||
UTILITIES 4.6% |
||||||||||||
Altice Holdings 1 SARL |
||||||||||||
0.000% due 12/31/2099 « |
EUR |
11 |
169 |
|||||||||
COX Asset Mexico SA de CV |
||||||||||||
7.125% due 01/08/2032 (m) |
$ |
250 |
254 |
|||||||||
7.750% due 05/08/2036 (m) |
200 |
205 |
||||||||||
FORESEA Holding SA |
||||||||||||
7.500% due 06/15/2030 (m) |
3,000 |
2,964 |
||||||||||
NGD Holdings BV |
||||||||||||
9.875% due 12/31/2029 |
493 |
483 |
||||||||||
Nova Securitisation SARL |
||||||||||||
5.750% due 02/03/2031 (m) |
2,200 |
2,123 |
||||||||||
6.500% due 02/03/2036 (m) |
1,500 |
1,412 |
||||||||||
OI SA |
||||||||||||
8.500% due 12/31/2028 ^(d) |
29,863 |
317 |
||||||||||
10.000% due 06/30/2027 ^(d) |
14,404 |
7,022 |
||||||||||
PBF Holding Co. LLC/PBF Finance Corp. |
||||||||||||
7.250% due 06/01/2034 (m) |
800 |
792 |
||||||||||
Peru LNG SRL |
||||||||||||
5.375% due 03/22/2030 (m) |
10,469 |
10,189 |
||||||||||
Qwest Corp. |
||||||||||||
7.375% due 05/01/2030 (m) |
5,130 |
5,054 |
||||||||||
SW Finance I PLC |
||||||||||||
1.625% due 03/30/2027 |
GBP |
1,800 |
2,326 |
|||||||||
Uniti Group LP/Uniti Group Finance 2019, Inc./CSL Capital LLC |
||||||||||||
6.500% due 02/15/2029 (m) |
$ |
3,200 |
3,177 |
|||||||||
Veon Midco BV |
||||||||||||
6.950% due 06/01/2031 |
1,400 |
1,399 |
||||||||||
7.450% due 06/01/2033 |
1,200 |
1,198 |
||||||||||
39,084 |
||||||||||||
Total Corporate Bonds & Notes (Cost $417,915) |
381,442 |
|||||||||||
CONVERTIBLE BONDS & NOTES 3.7% |
||||||||||||
INDUSTRIALS 3.7% |
||||||||||||
ams-OSRAM AG |
||||||||||||
2.125% due 11/03/2027 |
EUR |
13,700 |
15,380 |
|||||||||
DISH Network Corp. |
||||||||||||
3.375% due 08/15/2026 |
$ |
5,100 |
4,949 |
|||||||||
Ubisoft Entertainment SA |
||||||||||||
2.375% due 11/15/2028 (m) |
EUR |
9,600 |
10,777 |
|||||||||
Total Convertible Bonds & Notes (Cost $31,649) |
31,106 |
|||||||||||
See Accompanying Notes |
ANNUAL REPORT |
| |
JUNE 30, 2026 |
65 |
Schedule of Investments |
PIMCO High Income Fund |
(Cont.) |
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
MUNICIPAL BONDS & NOTES 2.4% |
||||||||||||
MICHIGAN 0.2% |
||||||||||||
Detroit, Michigan General Obligation Bonds, Series 2014 |
||||||||||||
4.000% due 04/01/2044 |
$ |
2,275 |
$ |
1,861 |
||||||||
PENNSYLVANIA 0.5% |
||||||||||||
Berks County, Pennsylvania Municipal Authority Revenue Notes, Series 2024 |
||||||||||||
8.000% due 06/30/2034 |
4,100 |
4,182 |
||||||||||
TEXAS 0.9% |
||||||||||||
El Paso Downtown Development Corp. Texas Revenue Bonds, Series 2013 |
||||||||||||
7.250% due 08/15/2043 |
7,175 |
7,858 |
||||||||||
WEST VIRGINIA 0.8% |
||||||||||||
Tobacco Settlement Finance Authority, West Virginia Revenue Bonds, Series 2007 |
||||||||||||
0.000% due 06/01/2047 (g) |
66,200 |
6,634 |
||||||||||
Total Municipal Bonds & Notes (Cost $23,004) |
20,535 |
|||||||||||
U.S. GOVERNMENT AGENCIES 4.7% |
||||||||||||
Federal Home Loan Mortgage Corp. Military Housing Bonds Resecuritization Trust Certificates |
||||||||||||
5.992% due 11/25/2055 «~ |
12,479 |
9,234 |
||||||||||
Federal Home Loan Mortgage Corp. REMICS |
||||||||||||
2.358% due 06/25/2050 •(a) |
2,633 |
276 |
||||||||||
2.393% due 07/15/2035 •(a) |
271 |
17 |
||||||||||
2.493% due 02/15/2042 •(a) |
313 |
19 |
||||||||||
3.433% due 08/15/2036 •(a) |
157 |
18 |
||||||||||
5.000% due 06/15/2033 ~(a) |
272 |
22 |
||||||||||
5.585% due 05/15/2033 • |
14 |
14 |
||||||||||
Federal Home Loan Mortgage Corp. Seasoned Credit Risk Transfer Trust |
||||||||||||
4.168% due 11/25/2059 ~ |
5,838 |
2,796 |
||||||||||
Federal Home Loan Mortgage Corp. STACR REMICS Trust |
||||||||||||
11.128% due 10/25/2041 • |
7,250 |
7,386 |
||||||||||
11.428% due 11/25/2041 • |
8,500 |
8,712 |
||||||||||
12.128% due 02/25/2042 • |
2,200 |
2,299 |
||||||||||
Federal National Mortgage Association Connecticut Avenue Securities Trust |
||||||||||||
9.128% due 12/25/2041 • |
1,200 |
1,223 |
||||||||||
9.628% due 10/25/2041 - 12/25/2041 • |
7,092 |
7,214 |
||||||||||
Federal National Mortgage Association REMICS |
||||||||||||
2.358% due 07/25/2050 •(a) |
2,497 |
268 |
||||||||||
3.500% due 09/25/2027 (a) |
9 |
0 |
||||||||||
4.000% due 06/25/2050 (a) |
1,562 |
291 |
||||||||||
10.000% due 01/25/2034 • |
67 |
69 |
||||||||||
Government National Mortgage Association REMICS |
||||||||||||
3.500% due 06/20/2042 - 03/20/2043 (a) |
348 |
46 |
||||||||||
4.500% due 07/20/2042 (a) |
43 |
4 |
||||||||||
5.000% due 09/20/2042 (a) |
80 |
9 |
||||||||||
Uniform Mortgage-Backed Security, TBA |
||||||||||||
3.000% due 08/01/2056 |
100 |
87 |
||||||||||
Total U.S. Government Agencies (Cost $41,603) |
40,004 |
|||||||||||
U.S. TREASURY OBLIGATIONS 0.1% |
||||||||||||
U.S. Treasury Bonds |
||||||||||||
4.875% due 08/15/2045 (q) |
466 |
463 |
||||||||||
U.S. Treasury Notes |
||||||||||||
4.125% due 02/15/2036 |
410 |
400 |
||||||||||
Total U.S. Treasury Obligations (Cost $887) |
863 |
|||||||||||
NON-AGENCY MORTGAGE-BACKED SECURITIES 9.6% |
||||||||||||
Adjustable Rate Mortgage Trust |
||||||||||||
4.103% due 05/25/2036 • |
2,755 |
1,056 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
Atrium Hotel Portfolio Trust |
||||||||||||
5.423% due 12/15/2036 •(m) |
$ |
5,500 |
$ |
5,433 |
||||||||
Banc of America Alternative Loan Trust |
||||||||||||
1.837% due 06/25/2046 •(a) |
1,764 |
126 |
||||||||||
2.877% due 06/25/2037 •(a) |
1,528 |
172 |
||||||||||
4.123% due 06/25/2037 • |
1,407 |
1,044 |
||||||||||
Banc of America Funding Trust |
||||||||||||
6.000% due 07/25/2037 |
239 |
205 |
||||||||||
6.250% due 10/26/2036 |
3,353 |
1,127 |
||||||||||
Banc of America Mortgage Trust |
||||||||||||
4.288% due 02/25/2036 ~ |
3 |
3 |
||||||||||
BCAP LLC Trust |
||||||||||||
4.440% due 03/26/2037 þ |
1,068 |
1,867 |
||||||||||
6.000% due 05/26/2037 ~ |
4,137 |
1,612 |
||||||||||
Bear Stearns ALT-A Trust |
||||||||||||
4.394% due 11/25/2036 ~ |
76 |
38 |
||||||||||
CD Mortgage Trust |
||||||||||||
5.688% due 10/15/2048 |
91 |
86 |
||||||||||
Chase Mortgage Finance Trust |
||||||||||||
4.443% due 09/25/2036 ~ |
27 |
23 |
||||||||||
4.646% due 12/25/2035 ~ |
6 |
5 |
||||||||||
CHL Mortgage Pass-Through Trust |
||||||||||||
1.587% due 12/25/2036 •(a) |
1,600 |
163 |
||||||||||
4.031% due 09/20/2036 ~ |
163 |
147 |
||||||||||
4.614% due 09/25/2047 ~ |
12 |
11 |
||||||||||
CIM Trust |
||||||||||||
4.750% due 12/25/2065 þ |
596 |
583 |
||||||||||
Citigroup Mortgage Loan Trust, Inc. |
||||||||||||
4.744% due 07/25/2037 ~ |
46 |
42 |
||||||||||
4.768% due 11/25/2035 ~(m) |
8,528 |
3,961 |
||||||||||
6.500% due 09/25/2036 (m) |
2,091 |
987 |
||||||||||
CLNY Trust |
||||||||||||
6.004% due 11/15/2038 •(m) |
1,700 |
1,630 |
||||||||||
6.700% due 11/15/2038 •(m) |
1,050 |
989 |
||||||||||
Countrywide Alternative Loan Trust |
||||||||||||
1.237% due 04/25/2035 •(a) |
1,484 |
68 |
||||||||||
4.263% due 12/25/2046 • |
1,092 |
950 |
||||||||||
4.437% due 02/25/2037 ~ |
61 |
54 |
||||||||||
6.000% due 02/25/2037 |
3,994 |
1,337 |
||||||||||
6.250% due 12/25/2036 • |
2,124 |
821 |
||||||||||
6.500% due 06/25/2036 |
591 |
282 |
||||||||||
Credit Suisse First Boston Mortgage Securities Corp. |
||||||||||||
6.000% due 01/25/2036 |
1,262 |
747 |
||||||||||
CSMC Trust |
||||||||||||
3.431% due 11/10/2032 (m) |
1,200 |
1,016 |
||||||||||
8.044% due 07/15/2032 •(m) |
950 |
932 |
||||||||||
Eurosail-U.K. PLC |
||||||||||||
5.216% due 06/13/2045 • |
GBP |
3,347 |
3,824 |
|||||||||
7.866% due 06/13/2045 • |
988 |
1,098 |
||||||||||
HarborView Mortgage Loan Trust |
||||||||||||
3.879% due 08/19/2036 ~ |
$ |
76 |
65 |
|||||||||
5.133% due 08/19/2036 ~ |
1 |
1 |
||||||||||
Hilton USA Trust |
||||||||||||
2.828% due 11/05/2035 |
900 |
750 |
||||||||||
IM Pastor 3 FTH |
||||||||||||
2.526% due 03/22/2043 • |
EUR |
1,389 |
1,421 |
|||||||||
JP Morgan Alternative Loan Trust |
||||||||||||
4.162% due 03/25/2037 ~(m) |
$ |
2,258 |
2,034 |
|||||||||
JP Morgan Chase Commercial Mortgage Securities Trust |
||||||||||||
5.272% due 11/15/2035 •(m) |
1,300 |
327 |
||||||||||
5.490% due 03/15/2036 •(m) |
1,750 |
1,478 |
||||||||||
5.622% due 11/15/2035 • |
600 |
87 |
||||||||||
JP Morgan Mortgage Trust |
||||||||||||
2.857% due 01/25/2037 •(a) |
13,161 |
1,672 |
||||||||||
3.927% due 07/27/2037 ~ |
3,970 |
3,351 |
||||||||||
Lehman XS Trust |
||||||||||||
4.203% due 06/25/2047 •(m) |
908 |
879 |
||||||||||
Morgan Stanley Re-REMICS Trust |
||||||||||||
3.976% due 05/26/2036 ~ |
2,372 |
2,167 |
||||||||||
New Orleans Hotel Trust |
||||||||||||
5.262% due 04/15/2032 •(m) |
1,000 |
989 |
||||||||||
Nomura Asset Acceptance Corp. Alternative Loan Trust |
||||||||||||
4.394% due 04/25/2036 ~(m) |
2,454 |
2,177 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
Nomura Resecuritization Trust |
||||||||||||
3.668% due 07/26/2035 ~(m) |
$ |
3,568 |
$ |
3,189 |
||||||||
PRPM LLC |
||||||||||||
5.089% due 02/25/2031 þ |
2,373 |
2,341 |
||||||||||
5.185% due 02/25/2031 þ(m) |
6,199 |
6,126 |
||||||||||
5.503% due 08/25/2030 þ(m) |
867 |
864 |
||||||||||
5.729% due 07/25/2030 þ |
851 |
848 |
||||||||||
Residential Asset Securitization Trust |
||||||||||||
4.163% due 01/25/2046 • |
165 |
43 |
||||||||||
6.250% due 09/25/2037 |
4,542 |
1,504 |
||||||||||
6.500% due 08/25/2036 |
784 |
200 |
||||||||||
SG Commercial Mortgage Securities Trust |
||||||||||||
2.937% due 03/15/2037 (m) |
1,400 |
1,342 |
||||||||||
Structured Adjustable Rate Mortgage Loan Trust |
||||||||||||
4.199% due 01/25/2036 ~ |
83 |
43 |
||||||||||
4.576% due 04/25/2047 ~ |
258 |
102 |
||||||||||
Structured Asset Mortgage Investments II Trust |
||||||||||||
4.143% due 07/25/2046 •(m) |
3,692 |
3,042 |
||||||||||
4.454% due 04/19/2035 • |
1,420 |
1,403 |
||||||||||
WaMu Mortgage Pass-Through Certificates Trust |
||||||||||||
3.078% due 05/25/2037 ~ |
47 |
40 |
||||||||||
5.500% due 06/25/2034 |
48 |
47 |
||||||||||
Washington Mutual Mortgage Pass-Through Certificates WMALT Trust |
||||||||||||
2.917% due 04/25/2037 •(a) |
6,190 |
1,159 |
||||||||||
6.500% due 03/25/2036 (m) |
3,668 |
2,815 |
||||||||||
Worldwide Plaza Trust |
||||||||||||
3.526% due 11/10/2036 (m) |
1,999 |
1,649 |
||||||||||
WSTN Trust |
||||||||||||
7.958% due 07/05/2037 ~(m) |
1,600 |
1,615 |
||||||||||
8.748% due 07/05/2037 ~(m) |
1,600 |
1,602 |
||||||||||
10.174% due 07/05/2037 ~(m) |
1,300 |
1,304 |
||||||||||
Total Non-Agency Mortgage-Backed Securities (Cost $91,540) |
81,115 |
|||||||||||
ASSET-BACKED SECURITIES 13.3% |
||||||||||||
AUTOMOBILE ABS OTHER 0.3% |
||||||||||||
Ally Bank Auto Credit-Linked Notes |
||||||||||||
6.066% due 06/15/2033 |
1,105 |
1,104 |
||||||||||
6.942% due 06/15/2033 |
487 |
487 |
||||||||||
10.219% due 06/15/2033 |
845 |
845 |
||||||||||
2,436 |
||||||||||||
HOME EQUITY OTHER 5.4% |
||||||||||||
ABFC Trust |
||||||||||||
5.013% due 06/25/2037 • |
574 |
406 |
||||||||||
ACE Securities Corp. Home Equity Loan Trust |
||||||||||||
3.983% due 12/25/2036 • |
8,730 |
2,229 |
||||||||||
4.043% due 07/25/2036 •(m) |
1,330 |
1,121 |
||||||||||
Centex Home Equity Loan Trust |
||||||||||||
4.511% due 06/25/2034 •(m) |
2,501 |
2,220 |
||||||||||
Countrywide Asset-Backed Certificates Trust |
||||||||||||
4.168% due 09/25/2046 • |
12,466 |
10,349 |
||||||||||
Encore Credit Receivables Trust |
||||||||||||
4.813% due 07/25/2035 •(m) |
7,565 |
6,802 |
||||||||||
Equity One Mortgage Pass-Through Trust |
||||||||||||
3.689% due 07/25/2034 þ |
457 |
371 |
||||||||||
JP Morgan Mortgage Acquisition Trust |
||||||||||||
4.163% due 03/25/2047 þ |
507 |
327 |
||||||||||
Merrill Lynch Mortgage Investors Trust |
||||||||||||
4.083% due 04/25/2037 • |
501 |
201 |
||||||||||
Morgan Stanley Mortgage Loan Trust |
||||||||||||
5.395% due 11/25/2036 • |
922 |
356 |
||||||||||
6.465% due 09/25/2046 þ |
5,696 |
1,857 |
||||||||||
People’s Financial Realty Mortgage Securities Trust |
||||||||||||
3.923% due 09/25/2036 • |
19,083 |
3,311 |
||||||||||
RAMP Trust |
||||||||||||
4.198% due 12/25/2036 • |
11,152 |
9,249 |
||||||||||
Renaissance Home Equity Loan Trust |
||||||||||||
6.998% due 09/25/2037 þ |
6,078 |
2,278 |
||||||||||
7.238% due 09/25/2037 þ |
5,259 |
1,970 |
||||||||||
66 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
Truman Capital Mortgage Loan Trust |
||||||||||||
7.888% due 01/25/2034 • |
$ |
2,283 |
$ |
2,267 |
||||||||
Washington Mutual Asset-Backed Certificates Trust |
||||||||||||
4.063% due 05/25/2036 • |
119 |
95 |
||||||||||
45,409 |
||||||||||||
WHOLE LOAN COLLATERAL 6.0% |
||||||||||||
First Franklin Mortgage Loan Trust |
||||||||||||
4.633% due 06/25/2036 • |
3,147 |
3,102 |
||||||||||
Pretium Mortgage Credit Partners LLC |
||||||||||||
4.968% due 02/25/2056 þ |
4,656 |
4,618 |
||||||||||
5.180% due 01/25/2056 þ(m) |
3,967 |
3,937 |
||||||||||
5.184% due 11/25/2055 þ(m) |
7,536 |
7,463 |
||||||||||
5.193% due 10/25/2055 þ(m) |
1,664 |
1,666 |
||||||||||
5.265% due 12/25/2055 þ(m) |
7,829 |
7,753 |
||||||||||
5.342% due 12/25/2055 þ(m) |
3,773 |
3,747 |
||||||||||
5.510% due 04/25/2056 þ |
1,278 |
1,276 |
||||||||||
5.668% due 06/25/2066 þ |
2,365 |
2,368 |
||||||||||
5.693% due 05/25/2056 þ |
2,078 |
2,077 |
||||||||||
5.710% due 04/25/2056 þ |
983 |
983 |
||||||||||
RCO X Mortgage LLC |
||||||||||||
5.418% due 10/25/2030 þ(m) |
3,501 |
3,485 |
||||||||||
Specialty Underwriting & Residential Finance Trust |
||||||||||||
4.738% due 06/25/2036 • |
8,070 |
6,778 |
||||||||||
VCAT LLC |
||||||||||||
5.062% due 02/25/2056 þ |
1,876 |
1,867 |
||||||||||
51,120 |
||||||||||||
OTHER ABS 1.6% |
||||||||||||
Aqueduct European CLO DAC |
||||||||||||
0.000% due 01/25/2039 |
EUR |
1,060 |
662 |
|||||||||
Avoca CLO XIII DAC |
||||||||||||
0.000% due 04/15/2034 ~ |
2,150 |
830 |
||||||||||
Belle Haven ABS CDO Ltd. |
||||||||||||
7.000% due 07/05/2046 • |
$ |
185,947 |
388 |
|||||||||
Carlyle Global Market Strategies Euro CLO DAC |
||||||||||||
0.000% due 01/25/2032 ~ |
EUR |
1,793 |
0 |
|||||||||
0.000% due 04/15/2038 ~ |
548 |
354 |
||||||||||
Carlyle U.S. CLO Ltd. |
||||||||||||
0.000% due 10/15/2031 ~ |
$ |
4,200 |
27 |
|||||||||
CIFC Funding Ltd. |
||||||||||||
0.000% due 04/24/2030 ~ |
4,000 |
395 |
||||||||||
0.000% due 03/31/2038 ~ |
2,441 |
1,103 |
||||||||||
Cork Street CLO DAC |
||||||||||||
0.000% due 11/27/2028 «~ |
EUR |
700 |
47 |
|||||||||
CVC Cordatus Loan Fund VI DAC |
||||||||||||
0.000% due 04/15/2032 ~ |
3,120 |
719 |
||||||||||
Duke Funding V Ltd. |
||||||||||||
7.390% due 08/07/2033 • |
$ |
13,523 |
1,563 |
|||||||||
Glacier Funding CDO III Ltd. |
||||||||||||
7.020% due 08/04/2035 • |
6,310 |
372 |
||||||||||
Man GLG Euro CLO I DAC |
||||||||||||
0.000% due 10/15/2030 ~ |
EUR |
3,371 |
4 |
|||||||||
Marlette Funding Trust |
||||||||||||
0.000% due 07/16/2029 «(g) |
$ |
10 |
0 |
|||||||||
Sherwood Funding CDO Ltd. |
||||||||||||
7.110% due 11/06/2039 • |
31,208 |
5,793 |
||||||||||
SLM Student Loan Trust |
||||||||||||
0.000% due 01/25/2042 «(g) |
2 |
291 |
||||||||||
SMB Private Education Loan Trust |
||||||||||||
0.000% due 10/15/2048 «(g) |
5 |
1,107 |
||||||||||
13,655 |
||||||||||||
Total Asset-Backed Securities (Cost $171,539) |
112,620 |
|||||||||||
SOVEREIGN ISSUES 11.5% |
||||||||||||
Angola Government International Bonds |
||||||||||||
8.000% due 11/26/2029 |
2,004 |
2,041 |
||||||||||
9.375% due 03/31/2033 |
2,300 |
2,356 |
||||||||||
Argentina Bonar Bonds |
||||||||||||
0.750% due 07/09/2030 þ |
9,019 |
5,603 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
Argentina Republic Government International Bonds |
||||||||||||
1.000% due 07/09/2029 |
$ |
114 |
$ |
104 |
||||||||
3.500% due 07/09/2041 þ(m) |
9,486 |
7,115 |
||||||||||
4.125% due 07/09/2046 þ |
107 |
82 |
||||||||||
5.000% due 01/09/2038 þ(m) |
1,326 |
1,110 |
||||||||||
Avenir Issuer IV Ireland DAC |
||||||||||||
6.000% due 10/25/2027 |
611 |
604 |
||||||||||
Brazil Government International Bonds |
||||||||||||
4.875% due 04/23/2033 (m) |
EUR |
600 |
689 |
|||||||||
Colombia TES |
||||||||||||
1.000% due 08/22/2029 |
COP |
364,000 |
103 |
|||||||||
1.000% due 03/26/2031 |
223,900 |
54 |
||||||||||
6.500% due 01/22/2031 (i) |
124,420 |
36 |
||||||||||
7.000% due 06/30/2032 |
214,400 |
50 |
||||||||||
7.250% due 10/18/2034 |
670,600 |
149 |
||||||||||
9.250% due 05/28/2042 |
234,700 |
56 |
||||||||||
11.000% due 08/22/2029 |
2,875,400 |
817 |
||||||||||
11.500% due 07/25/2046 |
790,300 |
224 |
||||||||||
11.750% due 01/24/2035 |
79,073,300 |
22,723 |
||||||||||
12.000% due 03/13/2058 |
3,000,500 |
868 |
||||||||||
12.500% due 02/27/2030 |
31,009,400 |
9,130 |
||||||||||
12.750% due 11/28/2040 |
2,653,500 |
810 |
||||||||||
13.250% due 02/09/2033 |
1,377,100 |
425 |
||||||||||
Development Bank of Kazakhstan JSC |
||||||||||||
18.400% due 10/16/2028 |
KZT |
302,800 |
659 |
|||||||||
Dominican Republic International Bonds |
||||||||||||
10.500% due 03/15/2037 (m) |
DOP |
365,400 |
6,511 |
|||||||||
10.750% due 06/01/2036 (m) |
25,900 |
468 |
||||||||||
11.250% due 09/15/2035 (m) |
53,650 |
994 |
||||||||||
DRC International Bonds |
||||||||||||
8.750% due 04/16/2032 |
$ |
1,200 |
1,244 |
|||||||||
9.500% due 04/16/2037 |
200 |
210 |
||||||||||
Egypt Government Bonds |
||||||||||||
19.698% due 10/14/2030 |
EGP |
746,200 |
14,477 |
|||||||||
Ghana Government International Bonds |
||||||||||||
0.000% due 07/03/2026 (g) |
$ |
11 |
11 |
|||||||||
0.000% due 01/03/2030 (g)(m) |
59 |
53 |
||||||||||
5.000% due 07/03/2029 þ |
296 |
293 |
||||||||||
Hellenic Republic Government Bonds |
||||||||||||
2.000% due 04/22/2027 |
EUR |
55 |
63 |
|||||||||
3.900% due 01/30/2033 |
122 |
146 |
||||||||||
4.000% due 01/30/2037 |
96 |
114 |
||||||||||
4.200% due 01/30/2042 |
119 |
142 |
||||||||||
Pakistan Government International Bonds |
||||||||||||
6.975% due 04/24/2029 |
$ |
1,300 |
1,304 |
|||||||||
Peru Government International Bonds |
||||||||||||
6.900% due 08/12/2037 |
PEN |
1,800 |
540 |
|||||||||
6.950% due 08/12/2031 |
2,801 |
932 |
||||||||||
Qatar Government International Bonds |
||||||||||||
4.800% due 04/08/2033 (m) |
$ |
1,500 |
1,508 |
|||||||||
Republic of Kenya Government International Bonds |
||||||||||||
7.875% due 02/26/2034 (m) |
900 |
896 |
||||||||||
Romania Government International Bonds |
||||||||||||
5.875% due 07/11/2032 (m) |
EUR |
2,600 |
3,116 |
|||||||||
Turkiye Government Bonds |
||||||||||||
40.305% (BISTREFI + 0.000%) due 09/06/2028 ~ |
TRY |
268,206 |
5,780 |
|||||||||
40.760% (BISTREFI + 0.000%) due 05/17/2028 ~ |
31,100 |
673 |
||||||||||
Ukraine Government International Bonds |
||||||||||||
0.000% due 02/01/2030 þ(h) |
$ |
40 |
29 |
|||||||||
0.000% due 02/01/2034 þ(h) |
149 |
85 |
||||||||||
0.000% due 02/01/2035 þ(h) |
126 |
76 |
||||||||||
0.000% due 02/01/2036 þ(h) |
105 |
63 |
||||||||||
4.500% due 02/01/2034 þ |
183 |
129 |
||||||||||
4.500% due 02/01/2035 þ |
256 |
178 |
||||||||||
4.500% due 02/01/2036 þ |
293 |
201 |
||||||||||
Venezuela Government International Bonds |
||||||||||||
9.250% due 09/15/2027 ^(d) |
1,552 |
766 |
||||||||||
9.250% due 05/07/2028 ^(d) |
900 |
434 |
||||||||||
11.950% due 08/05/2031 ^(d) |
400 |
219 |
||||||||||
Total Sovereign Issues (Cost $90,670) |
97,463 |
|||||||||||
SHARES |
MARKET VALUE (000S) |
|||||||||||
COMMON STOCKS 5.5% |
||||||||||||
COMMUNICATION SERVICES 0.9% |
||||||||||||
Clear Channel Outdoor Holdings, Inc. (e) |
754,306 |
$ |
1,825 |
|||||||||
iHeartMedia, Inc. Class A (e) |
157,290 |
675 |
||||||||||
iHeartMedia, Inc. Class B «(e) |
138,545 |
511 |
||||||||||
Promotora de Informaciones SA Class A (e) |
282,619 |
99 |
||||||||||
SES SA «(e) |
222,366 |
3,363 |
||||||||||
Uniti Group, Inc. (e) |
116,865 |
1,341 |
||||||||||
7,814 |
||||||||||||
CONSUMER DISCRETIONARY 0.0% |
||||||||||||
Steinhoff International Holdings NV «(e)(l) |
27,368,642 |
0 |
||||||||||
West Marine «(e)(l) |
3,250 |
21 |
||||||||||
21 |
||||||||||||
FINANCIALS 2.2% |
||||||||||||
Banca Monte dei Paschi di Siena SpA |
886,500 |
11,017 |
||||||||||
Windstream Servcies LLC (e) |
644,440 |
7,392 |
||||||||||
XBP Global Holdings, Inc. (e) |
968 |
2 |
||||||||||
18,411 |
||||||||||||
INDUSTRIALS 2.3% |
||||||||||||
Drillco Holdings Luxembourg SA «(l) |
170,549 |
3,909 |
||||||||||
Foresea Holdings SA « |
70,121 |
1,607 |
||||||||||
Incora Intermediate II LLC «(e)(l) |
314,058 |
12,379 |
||||||||||
Westmoreland Mining Holdings «(e)(l) |
87,552 |
57 |
||||||||||
Westmoreland Mining LLC «(e)(l) |
480,033 |
1,260 |
||||||||||
19,212 |
||||||||||||
INFORMATION TECHNOLOGY 0.1% |
||||||||||||
NVIDIA Corp. |
4,237 |
848 |
||||||||||
REAL ESTATE 0.0% |
||||||||||||
MNSN Holdings, Inc. (e)(l) |
3,757 |
316 |
||||||||||
Total Common Stocks (Cost $40,301) |
46,622 |
|||||||||||
WARRANTS 0.2% |
||||||||||||
COMMUNICATION SERVICES 0.2% |
||||||||||||
Windstream Holdings II LLC - Exp. 08/01/2035 « |
125,540 |
1,439 |
||||||||||
Total Warrants (Cost $765) |
1,439 |
|||||||||||
PREFERRED SECURITIES 4.3% |
||||||||||||
BANKING & FINANCE 3.7% |
||||||||||||
ADLER Group SA « |
1,524,031 |
0 |
||||||||||
AGFC Capital Trust I |
||||||||||||
5.685% due 01/15/2067 (m) |
20,410,000 |
12,754 |
||||||||||
Brighthouse Holdings LLC |
||||||||||||
6.500% due 07/27/2037 þ(j) |
70,000 |
60 |
||||||||||
Compeer Financial ACA |
||||||||||||
4.875% due 08/15/2026 (j) |
2,100,000 |
2,085 |
||||||||||
OCP CLO Ltd. |
||||||||||||
0.000% due 04/26/2036 |
15,547 |
5,528 |
||||||||||
WAFC Voussoir « |
6,443,107 |
6,443 |
||||||||||
Windstream Holdings II LLC |
||||||||||||
11.000% « |
4,111 |
4,583 |
||||||||||
31,453 |
||||||||||||
See Accompanying Notes |
ANNUAL REPORT |
| |
JUNE 30, 2026 |
67 |
Schedule of Investments |
PIMCO High Income Fund |
(Cont.) |
SHARES |
MARKET VALUE (000S) |
|||||||||||
INDUSTRIALS 0.6% |
||||||||||||
Clover Holdings, Inc. |
||||||||||||
0.000% «(l) |
14,886 |
$ |
286 |
|||||||||
SVB Financial Trust |
||||||||||||
0.000% due 11/07/2032 (g) |
19,520 |
2 |
||||||||||
11.000% due 11/07/2032 |
4,283 |
1,970 |
||||||||||
Syniverse Holdings, Inc. |
||||||||||||
12.500% «(l) |
3,566,672 |
2,598 |
||||||||||
Venture Global LNG, Inc. |
||||||||||||
9.000% due 09/30/2029 (j)(m) |
530,000 |
517 |
||||||||||
5,373 |
||||||||||||
Total Preferred Securities (Cost $35,837) |
36,826 |
|||||||||||
REAL ESTATE INVESTMENT TRUSTS 0.3% |
||||||||||||
REAL ESTATE 0.3% |
||||||||||||
VICI Properties, Inc. |
95,221 |
2,528 |
||||||||||
Total Real Estate Investment Trusts (Cost $280) |
2,528 |
|||||||||||
SHARES |
MARKET VALUE (000S) |
|||||||||||
SHORT-TERM INSTRUMENTS 2.9% |
||||||||||||
EGYPT TREASURY BILLS 0.2% |
||||||||||||
23.927% due 09/15/2026 - 10/20/2026 (f)(g) |
EGP |
86,775 |
1,660 |
|||||||||
NIGERIA TREASURY BILLS 2.2% |
||||||||||||
20.606% due 01/14/2027 - 01/28/2027 (f)(g) |
NGN |
28,613,500 |
18,561 |
|||||||||
U.S. TREASURY BILLS 0.5% |
||||||||||||
3.679% due 07/21/2026 - 08/11/2026 (f)(g)(o)(q) |
$ |
4,700 |
4,687 |
|||||||||
Total Short-Term Instruments (Cost $24,786) |
24,908 |
|||||||||||
Total Investments in Securities (Cost $1,176,753) |
1,065,718 |
|||||||||||
SHARES |
MARKET VALUE (000S) |
|||||||||||
INVESTMENTS IN AFFILIATES 8.4% |
||||||||||||
SHORT-TERM INSTRUMENTS 8.4% |
||||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 8.4% |
||||||||||||
PIMCO Short-Term Floating NAV Portfolio III |
7,352,783 |
71,623 |
||||||||||
Total Short-Term Instruments (Cost $71,610) |
71,623 |
|||||||||||
Total Investments in Affiliates (Cost $71,610) |
71,623 |
|||||||||||
Total Investments 134.1% (Cost $1,248,363) |
$ |
1,137,341 |
||||||||||
Financial Derivative Instruments (n)(p)(0.1)% (Cost or Premiums, net $55,944) |
(852 |
) | ||||||||||
Other Assets and Liabilities, net (34.0)% |
(288,512 |
) | ||||||||||
Net Assets Applicable to Common Shareholders 100.0% |
$ |
847,977 |
||||||||||
NOTES TO SCHEDULE OF INVESTMENTS:
* |
A zero balance may reflect actual amounts rounding to less than one thousand. |
^ |
Security is in default. |
« |
Security valued using significant unobservable inputs (Level 3). |
µ |
All or a portion of this amount represents unfunded loan commitments. The interest rate for the unfunded portion will be determined at the time of funding. See Note 4, Securities and Other Investments, in the Notes to Financial Statements for more information regarding unfunded loan commitments. |
~ |
Variable or Floating rate security. Rate shown is the rate in effect as of period end. Certain variable rate securities are not based on a published reference rate and spread, rather are determined by the issuer or agent and are based on current market conditions. Reference rate is as of reset date, which may vary by security. These securities may not indicate a reference rate and/or spread in their description. |
• |
Rate shown is the rate in effect as of period end. The rate may be based on a fixed rate, a capped rate or a floor rate and may convert to a variable or floating rate in the future. These securities do not indicate a reference rate and spread in their description. |
þ |
Coupon represents a rate which changes periodically based on a predetermined schedule or event. Rate shown is the rate in effect as of period end. |
(a) |
Security is an Interest Only (“IO”) or IO Strip. |
(b) |
When-issued security. |
(c) |
Payment in-kind security. |
(d) |
Security is not accruing income as of the date of this report. |
(e) |
Security did not produce income within the last twelve months. |
(f) |
Coupon represents a weighted average yield to maturity. |
(g) |
Zero coupon security. |
(h) |
Security becomes interest bearing at a future date. |
(i) |
Principal amount of security is adjusted for inflation. |
(j) |
Perpetual maturity; date shown, if applicable, represents next contractual call date. |
(k) |
Contingent convertible security. |
(l) RESTRICTED SECURITIES:
Issuer Description |
Acquisition Date |
Cost |
Market Value |
Market Value as Percentage of Net Assets |
||||||||||||||||||||
Clover Holdings, Inc. |
12/09/2024 |
$ |
223 |
$ |
286 |
0.03 |
% | |||||||||||||||||
Drillco Holdings Luxembourg SA |
06/08/2023 |
3,411 |
3,909 |
0.46 |
||||||||||||||||||||
Incora Intermediate II LLC |
01/31/2025 |
15,256 |
12,379 |
1.46 |
||||||||||||||||||||
Incora Top Holdco LLC6.000% due 01/30/2033 |
01/31/2025 - 05/01/2026 |
7,260 |
11,442 |
1.35 |
||||||||||||||||||||
MNSN Holdings, Inc. |
03/16/2023 - 03/29/2023 |
42 |
316 |
0.04 |
||||||||||||||||||||
Steinhoff International Holdings NV |
06/30/2023 - 10/30/2023 |
0 |
0 |
0.00 |
||||||||||||||||||||
Syniverse Holdings, Inc. |
05/12/2022 - 05/31/2026 |
3,523 |
2,598 |
0.31 |
||||||||||||||||||||
West Marine |
09/12/2023 |
47 |
21 |
0.00 |
||||||||||||||||||||
Westmoreland Mining Holdings |
07/11/2016 - 10/19/2016 |
2,140 |
57 |
0.01 |
||||||||||||||||||||
Westmoreland Mining LLC |
06/30/2023 - 05/14/2026 |
1,556 |
1,260 |
0.15 |
||||||||||||||||||||
$ |
33,458 |
$ |
32,268 |
3.81 |
% | |||||||||||||||||||
68 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
BORROWINGS AND OTHER FINANCING TRANSACTIONS
REVERSE REPURCHASE AGREEMENTS:
Counterparty |
Borrowing Rate (2) |
Settlement Date |
Maturity Date |
Amount Borrowed (2) |
Payable for Reverse Repurchase Agreements |
|||||||||||||||||
BOS |
3.850 |
% |
06/18/2026 |
07/20/2026 |
$ |
(593 |
) |
$ |
(594 |
) | ||||||||||||
3.950 |
06/04/2026 |
07/06/2026 |
(664 |
) |
(666 |
) | ||||||||||||||||
3.990 |
05/05/2026 |
07/02/2026 |
(5,529 |
) |
(5,564 |
) | ||||||||||||||||
4.000 |
06/04/2026 |
07/06/2026 |
(305 |
) |
(306 |
) | ||||||||||||||||
BPS |
(0.250 |
) |
06/17/2026 |
TBD |
(3) |
EUR |
(176 |
) |
(201 |
) | ||||||||||||
1.850 |
06/17/2026 |
TBD |
(3) |
EUR |
(1,226 |
) |
(1,402 |
) | ||||||||||||||
2.000 |
06/17/2026 |
TBD |
(3) |
(1,022 |
) |
(1,169 |
) | |||||||||||||||
2.500 |
06/17/2026 |
TBD |
(3) |
(284 |
) |
(325 |
) | |||||||||||||||
2.500 |
06/18/2026 |
TBD |
(3) |
(947 |
) |
(1,083 |
) | |||||||||||||||
4.000 |
07/02/2026 |
09/04/2026 |
$ |
(4,467 |
) |
(4,467 |
) | |||||||||||||||
4.040 |
05/04/2026 |
07/02/2026 |
(4,653 |
) |
(4,686 |
) | ||||||||||||||||
4.270 |
06/26/2026 |
09/28/2026 |
GBP |
(7,221 |
) |
(9,583 |
) | |||||||||||||||
BRC |
1.650 |
06/17/2026 |
TBD |
(3) |
(1,522 |
) |
(1,740 |
) | ||||||||||||||
1.750 |
06/17/2026 |
TBD |
(3) |
(264 |
) |
(302 |
) | |||||||||||||||
1.800 |
06/17/2026 |
TBD |
(3) |
(160 |
) |
(183 |
) | |||||||||||||||
2.450 |
06/17/2026 |
07/01/2026 |
(461 |
) |
(527 |
) | ||||||||||||||||
2.450 |
06/17/2026 |
07/02/2026 |
(835 |
) |
(955 |
) | ||||||||||||||||
3.900 |
02/12/2026 |
TBD |
(3) |
$ |
(2,591 |
) |
(2,630 |
) | ||||||||||||||
4.000 |
02/12/2026 |
TBD |
(3) |
(18,653 |
) |
(18,939 |
) | |||||||||||||||
4.510 |
05/14/2026 |
09/10/2026 |
(867 |
) |
(872 |
) | ||||||||||||||||
4.700 |
06/17/2026 |
10/15/2026 |
(1,287 |
) |
(1,290 |
) | ||||||||||||||||
4.760 |
05/14/2026 |
09/10/2026 |
(801 |
) |
(806 |
) | ||||||||||||||||
4.810 |
05/14/2026 |
09/10/2026 |
(704 |
) |
(708 |
) | ||||||||||||||||
BYR |
3.970 |
06/26/2026 |
08/03/2026 |
(5,340 |
) |
(5,343 |
) | |||||||||||||||
4.120 |
04/23/2026 |
07/23/2026 |
(458 |
) |
(462 |
) | ||||||||||||||||
4.120 |
06/16/2026 |
08/17/2026 |
(6,052 |
) |
(6,063 |
) | ||||||||||||||||
4.170 |
06/15/2026 |
08/14/2026 |
(15,953 |
) |
(15,982 |
) | ||||||||||||||||
CDC |
4.020 |
06/22/2026 |
10/20/2026 |
(1,623 |
) |
(1,625 |
) | |||||||||||||||
4.030 |
06/02/2026 |
07/02/2026 |
(2,885 |
) |
(2,895 |
) | ||||||||||||||||
4.120 |
06/05/2026 |
09/01/2026 |
(470 |
) |
(471 |
) | ||||||||||||||||
4.120 |
06/22/2026 |
10/20/2026 |
(8,658 |
) |
(8,667 |
) | ||||||||||||||||
4.120 |
06/25/2026 |
07/02/2026 |
(1,145 |
) |
(1,146 |
) | ||||||||||||||||
4.130 |
06/01/2026 |
09/01/2026 |
(8,393 |
) |
(8,422 |
) | ||||||||||||||||
4.130 |
06/02/2026 |
07/02/2026 |
(12,232 |
) |
(12,273 |
) | ||||||||||||||||
4.130 |
06/02/2026 |
09/01/2026 |
(678 |
) |
(680 |
) | ||||||||||||||||
DBL |
4.195 |
06/26/2026 |
09/25/2026 |
(7,005 |
) |
(7,009 |
) | |||||||||||||||
4.264 |
06/12/2026 |
09/11/2026 |
(1,063 |
) |
(1,065 |
) | ||||||||||||||||
4.295 |
06/26/2026 |
09/25/2026 |
(1,391 |
) |
(1,391 |
) | ||||||||||||||||
4.364 |
06/12/2026 |
09/11/2026 |
(12,955 |
) |
(12,985 |
) | ||||||||||||||||
4.395 |
06/26/2026 |
09/25/2026 |
(1,372 |
) |
(1,373 |
) | ||||||||||||||||
4.464 |
06/12/2026 |
09/11/2026 |
(752 |
) |
(754 |
) | ||||||||||||||||
DEU |
3.960 |
02/12/2026 |
07/01/2026 |
(3,123 |
) |
(3,170 |
) | |||||||||||||||
3.960 |
06/30/2026 |
TBD |
(3) |
(1,329 |
) |
(1,329 |
) | |||||||||||||||
3.960 |
07/01/2026 |
06/30/2028 |
(1,963 |
) |
(1,963 |
) | ||||||||||||||||
3.970 |
03/05/2026 |
TBD |
(3) |
(1,493 |
) |
(1,512 |
) | |||||||||||||||
4.010 |
06/25/2026 |
TBD |
(3) |
(574 |
) |
(575 |
) | |||||||||||||||
IND |
4.030 |
06/16/2026 |
09/16/2026 |
(478 |
) |
(479 |
) | |||||||||||||||
4.130 |
04/15/2026 |
07/01/2026 |
(2,434 |
) |
(2,455 |
) | ||||||||||||||||
4.130 |
04/15/2026 |
07/15/2026 |
(14,694 |
) |
(14,823 |
) | ||||||||||||||||
4.130 |
06/16/2026 |
09/16/2026 |
(4,505 |
) |
(4,513 |
) | ||||||||||||||||
4.190 |
07/01/2026 |
07/08/2026 |
(334 |
) |
(334 |
) | ||||||||||||||||
JML |
1.250 |
06/17/2026 |
TBD |
(3) |
EUR |
(588 |
) |
(672 |
) | |||||||||||||
JPS |
4.320 |
05/14/2026 |
11/16/2026 |
$ |
(1,316 |
) |
(1,323 |
) | ||||||||||||||
MEI |
4.100 |
06/18/2026 |
07/20/2026 |
(226 |
) |
(226 |
) | |||||||||||||||
4.100 |
06/30/2026 |
TBD |
(3) |
(182 |
) |
(182 |
) | |||||||||||||||
MYI |
2.150 |
06/23/2026 |
07/08/2026 |
(604 |
) |
(605 |
) | |||||||||||||||
NOM |
4.000 |
03/05/2026 |
TBD |
(3) |
(6,169 |
) |
(6,250 |
) | ||||||||||||||
RDR |
4.100 |
06/17/2026 |
TBD |
(3) |
(3,415 |
) |
(3,419 |
) | ||||||||||||||
RTA |
4.145 |
04/17/2026 |
10/19/2026 |
(405 |
) |
(408 |
) | |||||||||||||||
4.145 |
05/20/2026 |
11/20/2026 |
(7,778 |
) |
(7,814 |
) | ||||||||||||||||
4.145 |
06/02/2026 |
11/30/2026 |
(1,588 |
) |
(1,594 |
) | ||||||||||||||||
4.145 |
06/23/2026 |
11/30/2026 |
(3,550 |
) |
(3,553 |
) | ||||||||||||||||
4.420 |
06/05/2026 |
08/04/2026 |
(3,942 |
) |
(3,955 |
) | ||||||||||||||||
4.420 |
06/12/2026 |
10/13/2026 |
(29,621 |
) |
(29,690 |
) | ||||||||||||||||
4.470 |
06/05/2026 |
08/04/2026 |
(1,256 |
) |
(1,260 |
) | ||||||||||||||||
4.470 |
06/12/2026 |
10/13/2026 |
(3,929 |
) |
(3,939 |
) | ||||||||||||||||
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 69 |
Schedule of Investments |
PIMCO High Income Fund |
(Cont.) |
Counterparty |
Borrowing Rate (2) |
Settlement Date |
Maturity Date |
Amount Borrowed (2) |
Payable for Reverse Repurchase Agreements |
|||||||||||||||||
SCX |
4.050 |
% |
04/16/2026 |
TBD |
(3) |
$ |
(43 |
) |
$ |
(44 |
) | |||||||||||
4.100 |
12/12/2025 |
TBD |
(3) |
(370 |
) |
(379 |
) | |||||||||||||||
4.100 |
12/15/2025 |
TBD |
(3) |
(809 |
) |
(827 |
) | |||||||||||||||
4.100 |
06/03/2026 |
TBD |
(3) |
(5,635 |
) |
(5,653 |
) | |||||||||||||||
4.170 |
06/26/2026 |
08/04/2026 |
(812 |
) |
(812 |
) | ||||||||||||||||
SOG |
2.360 |
06/17/2026 |
TBD |
(3) |
EUR |
(531 |
) |
(607 |
) | |||||||||||||
2.370 |
06/17/2026 |
TBD |
(3) |
(2,228 |
) |
(2,549 |
) | |||||||||||||||
2.430 |
06/17/2026 |
TBD |
(3) |
(3,027 |
) |
(3,462 |
) | |||||||||||||||
3.910 |
04/16/2026 |
TBD |
(3) |
$ |
(1,422 |
) |
(1,434 |
) | ||||||||||||||
UBS |
1.700 |
07/02/2026 |
TBD |
(3) |
EUR |
(229 |
) |
(261 |
) | |||||||||||||
2.430 |
06/17/2026 |
TBD |
(3) |
(2,311 |
) |
(2,643 |
) | |||||||||||||||
2.470 |
06/17/2026 |
TBD |
(3) |
(1,324 |
) |
(1,514 |
) | |||||||||||||||
2.527 |
06/30/2026 |
09/30/2026 |
(4,180 |
) |
(4,776 |
) | ||||||||||||||||
2.567 |
06/10/2026 |
09/10/2026 |
(2,658 |
) |
(3,042 |
) | ||||||||||||||||
3.870 |
05/13/2026 |
TBD |
(3) |
$ |
(1,936 |
) |
(1,946 |
) | ||||||||||||||
3.960 |
05/05/2026 |
08/04/2026 |
(1,977 |
) |
(1,990 |
) | ||||||||||||||||
4.110 |
05/05/2026 |
07/09/2026 |
(565 |
) |
(569 |
) | ||||||||||||||||
4.110 |
05/06/2026 |
07/09/2026 |
(750 |
) |
(755 |
) | ||||||||||||||||
4.110 |
05/27/2026 |
08/27/2026 |
(15,876 |
) |
(15,939 |
) | ||||||||||||||||
4.230 |
04/07/2026 |
07/07/2026 |
(1,042 |
) |
(1,052 |
) | ||||||||||||||||
4.230 |
04/08/2026 |
07/08/2026 |
(2,082 |
) |
(2,102 |
) | ||||||||||||||||
4.230 |
04/09/2026 |
07/09/2026 |
(3,234 |
) |
(3,265 |
) | ||||||||||||||||
4.230 |
04/16/2026 |
07/16/2026 |
(10,304 |
) |
(10,396 |
) | ||||||||||||||||
4.230 |
05/28/2026 |
07/16/2026 |
(6,697 |
) |
(6,724 |
) | ||||||||||||||||
4.230 |
06/11/2026 |
07/16/2026 |
(8,473 |
) |
(8,493 |
) | ||||||||||||||||
Total Reverse Repurchase Agreements |
$ |
(324,881 |
) | |||||||||||||||||||
BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY
The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of June 30, 2026:
Counterparty |
Repurchase Agreement Proceeds to be Received (1) |
Payable for Reverse Repurchase Agreements |
Payable for Sale-Buyback Transactions |
Total Borrowings and Other Financing Transactions |
Collateral Pledged/(Received) |
Net Exposure (4) |
||||||||||||||||||
Global/Master Repurchase Agreement |
||||||||||||||||||||||||
BOS |
$ |
0 |
$ |
(7,130 |
) |
$ |
0 |
$ |
(7,130 |
) |
$ |
7,854 |
$ |
724 |
||||||||||
BPS |
0 |
(22,916 |
) |
0 |
(22,916 |
) |
20,280 |
(2,636 |
) | |||||||||||||||
BRC |
0 |
(28,952 |
) |
0 |
(28,952 |
) |
32,702 |
3,750 |
||||||||||||||||
BYR |
0 |
(27,850 |
) |
0 |
(27,850 |
) |
31,733 |
3,883 |
||||||||||||||||
CDC |
0 |
(36,179 |
) |
0 |
(36,179 |
) |
41,742 |
5,563 |
||||||||||||||||
CEW |
0 |
0 |
0 |
0 |
18,431 |
18,431 |
||||||||||||||||||
DBL |
0 |
(24,577 |
) |
0 |
(24,577 |
) |
29,757 |
5,180 |
||||||||||||||||
DEU |
0 |
(8,549 |
) |
0 |
(8,549 |
) |
7,319 |
(1,230 |
) | |||||||||||||||
IND |
0 |
(22,604 |
) |
0 |
(22,604 |
) |
24,578 |
1,974 |
||||||||||||||||
JML |
0 |
(672 |
) |
0 |
(672 |
) |
674 |
2 |
||||||||||||||||
JPS |
0 |
(1,323 |
) |
0 |
(1,323 |
) |
1,478 |
155 |
||||||||||||||||
MEI |
0 |
(408 |
) |
0 |
(408 |
) |
459 |
51 |
||||||||||||||||
MYI |
0 |
(605 |
) |
0 |
(605 |
) |
595 |
(10 |
) | |||||||||||||||
NOM |
0 |
(6,250 |
) |
0 |
(6,250 |
) |
7,805 |
1,555 |
||||||||||||||||
RDR |
0 |
(3,419 |
) |
0 |
(3,419 |
) |
4,139 |
720 |
||||||||||||||||
RTA |
0 |
(52,213 |
) |
0 |
(52,213 |
) |
64,885 |
12,672 |
||||||||||||||||
SCX |
0 |
(7,715 |
) |
0 |
(7,715 |
) |
8,922 |
1,207 |
||||||||||||||||
SOG |
0 |
(8,052 |
) |
0 |
(8,052 |
) |
50,593 |
42,541 |
||||||||||||||||
UBS |
0 |
(65,467 |
) |
0 |
(65,467 |
) |
12,737 |
(52,730 |
) | |||||||||||||||
Total Borrowings and Other Financing Transactions |
$ |
0 |
$ |
(324,881 |
) |
$ |
0 |
|||||||||||||||||
CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS
Remaining Contractual Maturity of the Agreements
Overnight and Continuous |
Up to 30 days |
31-90 days |
Greater Than 90 days |
Total |
||||||||||||||||
Reverse Repurchase Agreements |
||||||||||||||||||||
Corporate Bonds & Notes |
$ |
(2,982 |
) |
$ |
(61,782 |
) |
$ |
(72,507 |
) |
$ |
(72,994 |
) |
$ |
(210,265 |
) | |||||
Convertible Bonds & Notes |
0 |
0 |
0 |
(672 |
) |
(672 |
) | |||||||||||||
Non-Agency Mortgage-Backed Securities |
(3,170 |
) |
0 |
(26,844 |
) |
(11,656 |
) |
(41,670 |
) | |||||||||||
70 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
Overnight and Continuous |
Up to 30 days |
31-90 days |
Greater Than 90 days |
Total |
||||||||||||||||
Asset-Backed Securities |
$ |
0 |
$ |
0 |
$ |
(5,335 |
) |
$ |
(24,586 |
) |
$ |
(29,921 |
) | |||||||
Sovereign Issues |
0 |
0 |
(812 |
) |
(17,741 |
) |
(18,553 |
) | ||||||||||||
Preferred Securities |
0 |
(462 |
) |
0 |
0 |
(462 |
) | |||||||||||||
U.S. Treasury Obligations |
0 |
(16,314 |
) |
0 |
0 |
(16,314 |
) | |||||||||||||
Total Borrowings |
$ |
(6,152 |
) |
$ |
(78,558 |
) |
$ |
(105,498 |
) |
$ |
(127,649 |
) |
$ |
(317,857 |
) | |||||
Payable for reverse repurchase agreements (5) |
$ |
(317,857 |
) | |||||||||||||||||
(m) |
Securities with an aggregate market value of $363,444 and cash of $4,347 have been pledged as collateral under the terms of the above master agreements as of June 30, 2026. |
(1) |
Includes accrued interest. |
(2) |
The average amount of borrowings outstanding during the period ended June 30, 2026 was $(208,804) at a weighted average interest rate of 4.099%. Average borrowings may include reverse repurchase agreements and sale-buyback transactions, if held during the period. |
(3) |
Open maturity reverse repurchase agreement. |
(4) |
Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information. |
(5) |
Unsettled reverse repurchase agreements liability of $(7,024) is outstanding at period end. |
(n) FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED
SWAP AGREEMENTS:
CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION
(1)
Reference Entity |
Fixed Receive Rate |
Payment Frequency |
Maturity Date |
Implied Credit Spread at June 30, 2026 (2) |
Notional Amount (3) |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Market Value (4) |
Variation Margin |
|||||||||||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||||||||||
Venture Global LNG, Inc. |
5.000 |
% |
Quarterly |
12/20/2030 |
2.113 |
% |
$ |
1,000 |
$ |
31 |
$ |
84 |
$ |
115 |
$ |
2 |
$ |
0 |
||||||||||||||||||||||||||
Venture Global LNG, Inc. |
5.000 |
Quarterly |
06/20/2031 |
2.310 |
100 |
10 |
2 |
12 |
0 |
0 |
||||||||||||||||||||||||||||||||||
Worldline SA/France |
5.000 |
Quarterly |
12/20/2027 |
6.803 |
EUR |
400 |
(39 |
) |
28 |
(11 |
) |
0 |
0 |
|||||||||||||||||||||||||||||||
Worldline SA/France |
5.000 |
Quarterly |
12/20/2028 |
8.139 |
100 |
(14 |
) |
6 |
(8 |
) |
0 |
0 |
||||||||||||||||||||||||||||||||
Worldline SA/France |
5.000 |
Quarterly |
12/20/2030 |
9.729 |
12,700 |
(2,066 |
) |
(90 |
) |
(2,156 |
) |
23 |
0 |
|||||||||||||||||||||||||||||||
$ |
(2,078 |
) |
$ |
30 |
$ |
(2,048 |
) |
$ |
25 |
$ |
0 |
|||||||||||||||||||||||||||||||||
CREDIT DEFAULT SWAPS ON CREDIT INDEXES - SELL PROTECTION
(1)
Index/Tranches |
Fixed Receive Rate |
Payment Frequency |
Maturity Date |
Notional Amount (3) |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Market Value (4) |
Variation Margin |
||||||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||||
CDX.HY-46 5-Year Index |
5.000 |
% |
Quarterly |
06/20/2031 |
$ |
15,612 |
$ |
1,294 |
$ |
(14 |
) |
$ |
1,280 |
$ |
0 |
$ |
(8 |
) | ||||||||||||||||||||
INTEREST RATE SWAPS
Pay/Receive Floating Rate |
Floating Rate Index |
Fixed Rate |
Payment Frequency |
Maturity Date |
Notional Amount |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Market Value |
Variation Margin |
|||||||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||||||
Pay |
1-Day GBP-SONIO Compounded-OIS |
3.500 |
% |
Annual |
03/18/2031 |
GBP |
32,280 |
$ |
(440 |
) |
$ |
(613 |
) |
$ |
(1,053 |
) |
$ |
0 |
$ |
(44 |
) | |||||||||||||||||||
Receive |
1-Day GBP-SONIO Compounded-OIS |
0.750 |
Annual |
09/21/2032 |
13,400 |
1,297 |
2,377 |
3,674 |
24 |
0 |
||||||||||||||||||||||||||||||
Receive |
1-Day GBP-SONIO Compounded-OIS |
2.000 |
Annual |
03/15/2033 |
6,900 |
768 |
416 |
1,184 |
13 |
0 |
||||||||||||||||||||||||||||||
Receive |
1-Day GBP-SONIO Compounded-OIS |
0.750 |
Annual |
09/21/2052 |
2,700 |
(7 |
) |
2,259 |
2,252 |
9 |
0 |
|||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
0.850 |
Semi-Annual |
02/01/2027 |
$ |
43,700 |
253 |
733 |
986 |
10 |
0 |
|||||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
1.750 |
Annual |
06/15/2027 |
112,200 |
(2,687 |
) |
224 |
(2,463 |
) |
0 |
(37 |
) | |||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.250 |
Annual |
06/21/2028 |
23,400 |
(313 |
) |
(23 |
) |
(336 |
) |
0 |
(20 |
) | ||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.370 |
Semi-Annual |
08/25/2028 |
27,135 |
(8 |
) |
1,597 |
1,589 |
27 |
0 |
|||||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.750 |
Annual |
12/20/2028 |
89,500 |
784 |
(1,235 |
) |
(451 |
) |
0 |
(103 |
) | |||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.000 |
Semi-Annual |
06/19/2029 |
79,200 |
1,113 |
(3,846 |
) |
(2,733 |
) |
0 |
(116 |
) | |||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.750 |
Annual |
06/20/2029 |
76,900 |
(969 |
) |
545 |
(424 |
) |
0 |
(109 |
) | |||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
3.750 |
Annual |
06/20/2029 |
31,000 |
(587 |
) |
758 |
171 |
45 |
0 |
|||||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
2.000 |
Annual |
12/21/2029 |
53,300 |
(5,501 |
) |
1,699 |
(3,802 |
) |
0 |
(94 |
) | |||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.250 |
Annual |
06/18/2030 |
233,400 |
(2,351 |
) |
(3,358 |
) |
(5,709 |
) |
0 |
(463 |
) | ||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.000 |
Semi-Annual |
12/16/2030 |
127 |
1 |
16 |
17 |
0 |
0 |
||||||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.500 |
Annual |
03/18/2031 |
24,800 |
186 |
(634 |
) |
(448 |
) |
0 |
(62 |
) | |||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
0.750 |
Semi-Annual |
06/16/2031 |
7,300 |
427 |
706 |
1,133 |
19 |
0 |
||||||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.250 |
Annual |
06/17/2031 |
98,190 |
(1,457 |
) |
(1,483 |
) |
(2,940 |
) |
0 |
(260 |
) | ||||||||||||||||||||||||||
Pay (5) |
1-Day USD-SOFR Compounded-OIS |
4.000 |
Annual |
07/02/2031 |
132,700 |
721 |
(181 |
) |
540 |
0 |
(360 |
) | ||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.350 |
Semi-Annual |
02/09/2032 |
139,800 |
492 |
19,451 |
19,943 |
410 |
0 |
||||||||||||||||||||||||||||||
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 71 |
Schedule of Investments |
PIMCO High Income Fund |
(Cont.) |
Pay/Receive Floating Rate |
Floating Rate Index |
Fixed Rate |
Payment Frequency |
Maturity Date |
Notional Amount |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Market Value |
Variation Margin |
|||||||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.250 |
% |
Annual |
06/15/2032 |
$ |
87,000 |
$ |
4,224 |
$ |
8,147 |
$ |
12,371 |
$ |
265 |
$ |
0 |
|||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.750 |
Annual |
06/15/2032 |
59,500 |
2,570 |
4,305 |
6,875 |
183 |
0 |
||||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
3.750 |
Annual |
12/17/2035 |
9,810 |
(161 |
) |
355 |
194 |
48 |
0 |
|||||||||||||||||||||||||||||
Receive (5) |
1-Day USD-SOFR Compounded-OIS |
4.000 |
Annual |
02/15/2036 |
21,800 |
(14 |
) |
37 |
23 |
109 |
0 |
|||||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.500 |
Semi-Annual |
06/19/2044 |
395,600 |
59,600 |
(109,096 |
) |
(49,496 |
) |
0 |
(1,852 |
) | |||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
3.750 |
Annual |
12/17/2045 |
6,160 |
119 |
276 |
395 |
52 |
0 |
||||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
2.000 |
Semi-Annual |
01/15/2050 |
35,600 |
(247 |
) |
13,624 |
13,377 |
254 |
0 |
|||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.750 |
Semi-Annual |
01/22/2050 |
55,100 |
(135 |
) |
22,937 |
22,802 |
381 |
0 |
|||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.875 |
Semi-Annual |
02/07/2050 |
42,480 |
(165 |
) |
16,915 |
16,750 |
299 |
0 |
|||||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
2.000 |
Semi-Annual |
12/15/2051 |
29,200 |
2,061 |
(13,534 |
) |
(11,473 |
) |
0 |
(217 |
) | |||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.700 |
Semi-Annual |
02/01/2052 |
223,450 |
(4,208 |
) |
101,785 |
97,577 |
994 |
0 |
|||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
2.750 |
Annual |
06/21/2053 |
9,700 |
916 |
1,381 |
2,297 |
89 |
0 |
||||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
3.500 |
Annual |
06/20/2054 |
29,000 |
1,270 |
2,114 |
3,384 |
294 |
0 |
||||||||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
13.172 |
Maturity |
01/02/2031 |
BRL |
17,300 |
1 |
(71 |
) |
(70 |
) |
10 |
0 |
|||||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
13.180 |
Maturity |
01/02/2031 |
148,100 |
(60 |
) |
(529 |
) |
(589 |
) |
84 |
0 |
|||||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
13.330 |
Maturity |
01/02/2031 |
1,800 |
0 |
(6 |
) |
(6 |
) |
1 |
0 |
||||||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
13.724 |
Maturity |
01/02/2031 |
68,500 |
0 |
(86 |
) |
(86 |
) |
38 |
0 |
||||||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
13.790 |
Maturity |
01/02/2031 |
18,200 |
0 |
(17 |
) |
(17 |
) |
10 |
0 |
||||||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
13.882 |
Maturity |
01/02/2031 |
89,200 |
0 |
(46 |
) |
(46 |
) |
50 |
0 |
||||||||||||||||||||||||||||
Pay |
3-Month COP-IBR Compounded-OIS |
12.000 |
Annual |
06/17/2027 |
COP |
3,946,400 |
(1 |
) |
0 |
(1 |
) |
0 |
(1 |
) | ||||||||||||||||||||||||||
Pay |
3-Month COP-IBR Compounded-OIS |
11.250 |
Quarterly |
06/17/2028 |
405,600 |
0 |
0 |
0 |
0 |
0 |
||||||||||||||||||||||||||||||
Pay |
6-Month EUR-EURIBOR |
0.650 |
Annual |
02/26/2029 |
EUR |
65,500 |
66 |
(4,340 |
) |
(4,274 |
) |
0 |
(44 |
) | ||||||||||||||||||||||||||
Receive |
6-Month EUR-EURIBOR |
0.150 |
Annual |
06/17/2030 |
24,100 |
(1,059 |
) |
3,729 |
2,670 |
22 |
0 |
|||||||||||||||||||||||||||||
Receive |
6-Month EUR-EURIBOR |
0.250 |
Annual |
09/21/2032 |
3,200 |
290 |
251 |
541 |
3 |
0 |
||||||||||||||||||||||||||||||
Receive |
6-Month EUR-EURIBOR |
1.250 |
Annual |
08/19/2049 |
18,200 |
76 |
6,368 |
6,444 |
23 |
0 |
||||||||||||||||||||||||||||||
Pay |
6-Month EUR-EURIBOR |
0.500 |
Annual |
06/17/2050 |
7,700 |
1,317 |
(5,268 |
) |
(3,951 |
) |
0 |
(10 |
) | |||||||||||||||||||||||||||
Receive (5) |
6-Month EUR-EURIBOR |
0.830 |
Annual |
12/09/2052 |
26,400 |
424 |
3,156 |
3,580 |
0 |
(4 |
) | |||||||||||||||||||||||||||||
$ |
58,606 |
$ |
71,795 |
$ |
130,401 |
$ |
3,766 |
$ |
(3,796 |
) | ||||||||||||||||||||||||||||||
Total Swap Agreements |
$ |
57,822 |
$ |
71,811 |
$ |
129,633 |
$ |
3,791 |
$ |
(3,804 |
) | |||||||||||||||||||||||||||||
FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY
The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of June 30, 2026:
Financial Derivative Assets |
Financial Derivative Liabilities |
|||||||||||||||||||||||||||||||||||
Market Value |
Variation Margin Asset |
Total |
Market Value |
Variation Margin Liability |
Total |
|||||||||||||||||||||||||||||||
Purchased Options |
Futures |
Swap Agreements |
Written Options |
Futures |
Swap Agreements |
|||||||||||||||||||||||||||||||
Total Exchange-Traded or Centrally Cleared |
$ |
0 |
$ |
0 |
$ |
3,791 |
$ |
3,791 |
$ |
0 |
$ |
0 |
$ |
(3,804 |
) |
$ |
(3,804 |
) | ||||||||||||||||||
(o) |
Securities with an aggregate market value of $714 and cash of $27,014 have been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of June 30, 2026. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information. |
(1) |
If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
(2) |
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
(3) |
The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
(4) |
The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the underlying referenced instrument’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
(5) |
This instrument has a forward starting effective date. See Note 2, Securities Transactions and Investment Income, in the Notes to Financial Statements for further information. |
72 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
(p) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
FORWARD FOREIGN CURRENCY CONTRACTS:
Counterparty |
Settlement Month |
Currency to be Delivered |
Currency to be Received |
Unrealized Appreciation/ (Depreciation) |
||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||
BOA |
07/2026 |
DOP |
52,830 |
$ |
898 |
$ |
6 |
$ |
0 |
|||||||||||||||
07/2026 |
EUR |
1,602 |
1,865 |
34 |
0 |
|||||||||||||||||||
07/2026 |
GBP |
17 |
22 |
0 |
0 |
|||||||||||||||||||
08/2026 |
DOP |
27,126 |
456 |
5 |
0 |
|||||||||||||||||||
08/2026 |
HKD |
3,242 |
414 |
0 |
0 |
|||||||||||||||||||
09/2026 |
COP |
20,190,346 |
5,209 |
0 |
(594 |
) | ||||||||||||||||||
09/2026 |
KZT |
8,912 |
18 |
0 |
(1 |
) | ||||||||||||||||||
BPS |
07/2026 |
BRL |
5,754 |
1,112 |
0 |
(3 |
) | |||||||||||||||||
07/2026 |
TRY |
5,657 |
119 |
0 |
(1 |
) | ||||||||||||||||||
07/2026 |
$ |
1,133 |
BRL |
5,754 |
0 |
(18 |
) | |||||||||||||||||
07/2026 |
1,107 |
ZAR |
18,162 |
0 |
0 |
|||||||||||||||||||
08/2026 |
EUR |
1,582 |
$ |
1,805 |
0 |
(5 |
) | |||||||||||||||||
08/2026 |
$ |
962 |
BRL |
4,899 |
0 |
(20 |
) | |||||||||||||||||
09/2026 |
COP |
129,528 |
$ |
35 |
0 |
(2 |
) | |||||||||||||||||
08/2030 |
KWD |
58 |
195 |
6 |
0 |
|||||||||||||||||||
01/2031 |
2,065 |
6,960 |
205 |
0 |
||||||||||||||||||||
06/2031 |
413 |
1,390 |
38 |
0 |
||||||||||||||||||||
BRC |
07/2026 |
TRY |
410,862 |
8,632 |
0 |
(45 |
) | |||||||||||||||||
07/2026 |
$ |
6,414 |
TRY |
306,830 |
69 |
0 |
||||||||||||||||||
07/2026 |
5,522 |
ZAR |
89,696 |
0 |
(55 |
) | ||||||||||||||||||
BSH |
08/2026 |
16,122 |
BRL |
82,258 |
0 |
(310 |
) | |||||||||||||||||
09/2026 |
COP |
10,573,372 |
$ |
2,710 |
0 |
(329 |
) | |||||||||||||||||
CBK |
07/2026 |
EUR |
830 |
968 |
20 |
0 |
||||||||||||||||||
07/2026 |
$ |
427 |
EGP |
22,830 |
36 |
0 |
||||||||||||||||||
07/2026 |
1,523 |
EUR |
1,307 |
0 |
(30 |
) | ||||||||||||||||||
08/2026 |
COP |
51,955,506 |
$ |
13,648 |
0 |
(1,388 |
) | |||||||||||||||||
08/2026 |
EUR |
2,691 |
3,070 |
0 |
(9 |
) | ||||||||||||||||||
09/2026 |
COP |
15,892,128 |
4,186 |
0 |
(381 |
) | ||||||||||||||||||
09/2026 |
KZT |
34,566 |
68 |
0 |
(2 |
) | ||||||||||||||||||
09/2026 |
$ |
5 |
PEN |
17 |
0 |
0 |
||||||||||||||||||
12/2026 |
PEN |
5,975 |
$ |
1,709 |
0 |
(28 |
) | |||||||||||||||||
DUB |
07/2026 |
KZT |
4,911 |
10 |
0 |
0 |
||||||||||||||||||
07/2026 |
$ |
612 |
EGP |
33,030 |
57 |
0 |
||||||||||||||||||
07/2026 |
2,577 |
ZAR |
41,709 |
0 |
(34 |
) | ||||||||||||||||||
08/2026 |
KZT |
37,368 |
$ |
77 |
0 |
0 |
||||||||||||||||||
11/2026 |
18,892 |
38 |
0 |
0 |
||||||||||||||||||||
FAR |
07/2026 |
GBP |
9,277 |
12,476 |
170 |
0 |
||||||||||||||||||
07/2026 |
$ |
3,601 |
ZAR |
59,419 |
21 |
0 |
||||||||||||||||||
GLM |
07/2026 |
DOP |
9,415 |
$ |
155 |
0 |
(3 |
) | ||||||||||||||||
08/2026 |
27,118 |
454 |
4 |
0 |
||||||||||||||||||||
08/2026 |
$ |
1,564 |
BRL |
7,994 |
0 |
(28 |
) | |||||||||||||||||
09/2026 |
DOP |
207,089 |
$ |
3,412 |
14 |
(30 |
) | |||||||||||||||||
09/2026 |
$ |
2,083 |
BRL |
10,721 |
0 |
(37 |
) | |||||||||||||||||
10/2026 |
DOP |
6,135 |
$ |
103 |
2 |
0 |
||||||||||||||||||
11/2026 |
124,897 |
2,054 |
0 |
(2 |
) | |||||||||||||||||||
12/2026 |
5,496 |
92 |
2 |
0 |
||||||||||||||||||||
JPM |
07/2026 |
BRL |
5,768 |
1,121 |
4 |
0 |
||||||||||||||||||
07/2026 |
KZT |
2,860 |
6 |
0 |
0 |
|||||||||||||||||||
07/2026 |
$ |
1,114 |
BRL |
5,768 |
3 |
0 |
||||||||||||||||||
08/2026 |
HKD |
12,043 |
$ |
1,539 |
1 |
0 |
||||||||||||||||||
09/2026 |
COP |
106,786 |
29 |
0 |
(1 |
) | ||||||||||||||||||
10/2026 |
$ |
1,121 |
BRL |
5,895 |
0 |
(4 |
) | |||||||||||||||||
MBC |
07/2026 |
EUR |
11,089 |
$ |
12,887 |
216 |
0 |
|||||||||||||||||
07/2026 |
$ |
5,693 |
EUR |
4,922 |
0 |
(69 |
) | |||||||||||||||||
07/2026 |
2 |
JPY |
316 |
0 |
0 |
|||||||||||||||||||
08/2026 |
625 |
EGP |
33,800 |
50 |
0 |
|||||||||||||||||||
08/2026 |
2,878 |
EUR |
2,520 |
6 |
0 |
|||||||||||||||||||
SCX |
08/2026 |
HKD |
11,365 |
$ |
1,453 |
1 |
0 |
|||||||||||||||||
09/2026 |
KZT |
2,918 |
6 |
0 |
0 |
|||||||||||||||||||
SOG |
07/2026 |
EUR |
100,511 |
117,250 |
2,406 |
0 |
||||||||||||||||||
07/2026 |
$ |
122,626 |
EUR |
107,803 |
550 |
0 |
||||||||||||||||||
07/2026 |
6 |
JPY |
1,015 |
0 |
0 |
|||||||||||||||||||
08/2026 |
EUR |
107,803 |
$ |
122,792 |
0 |
(549 |
) | |||||||||||||||||
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 73 |
Schedule of Investments |
PIMCO High Income Fund |
(Cont.) |
Counterparty |
Settlement Month |
Currency to be Delivered |
Currency to be Received |
Unrealized Appreciation/ (Depreciation) |
||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||
SSB |
07/2026 |
$ |
12,286 |
GBP |
9,294 |
$ |
43 |
$ |
0 |
|||||||||||||||
08/2026 |
GBP |
9,294 |
$ |
12,285 |
0 |
(43 |
) | |||||||||||||||||
UAG |
09/2026 |
COP |
2,997,852 |
777 |
0 |
(84 |
) | |||||||||||||||||
09/2026 |
$ |
6,669 |
COP |
25,733,651 |
726 |
0 |
||||||||||||||||||
12/2026 |
COP |
8,576,042 |
$ |
2,198 |
0 |
(215 |
) | |||||||||||||||||
Total Forward Foreign Currency Contracts |
$ |
4,695 |
$ |
(4,320 |
) | |||||||||||||||||||
SWAP AGREEMENTS:
CREDIT DEFAULT SWAPS ON CORPORATE AND SOVEREIGN ISSUES - SELL PROTECTION
(1)
Counterparty |
Reference Entity |
Fixed Receive Rate |
Payment Frequency |
Maturity Date |
Implied Credit Spread at June 30, 2026 (2) |
Notional Amount (3) |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Swap Agreements, at Value (4) |
|||||||||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||||||||
BOA |
Petroleos Mexicanos |
1.000 |
% |
Quarterly |
06/20/2031 |
2.146% |
$ |
5,700 |
$ |
(291 |
) |
$ |
11 |
$ |
0 |
$ |
(280 |
) | ||||||||||||||||||||||||
BPS |
Colombia Government International Bonds |
1.000 |
Quarterly |
06/20/2036 |
2.387 |
1,110 |
(155 |
) |
41 |
0 |
(114 |
) | ||||||||||||||||||||||||||||||
BRC |
Argentine Republic Government International Bonds |
5.000 |
Quarterly |
12/20/2026 |
0.814 |
1,900 |
44 |
(4 |
) |
40 |
0 |
|||||||||||||||||||||||||||||||
Petroleos Mexicanos |
1.000 |
Quarterly |
06/20/2031 |
2.146 |
1,000 |
(57 |
) |
8 |
0 |
(49 |
) | |||||||||||||||||||||||||||||||
CBK |
Colombia Government International Bonds |
1.000 |
Quarterly |
06/20/2036 |
2.387 |
4,400 |
(612 |
) |
159 |
0 |
(453 |
) | ||||||||||||||||||||||||||||||
Petroleos Mexicanos |
1.000 |
Quarterly |
12/20/2026 |
0.880 |
300 |
(3 |
) |
3 |
0 |
0 |
||||||||||||||||||||||||||||||||
DUB |
Eskom « |
4.650 |
Quarterly |
06/30/2029 |
— |
¨ |
3,025 |
0 |
155 |
155 |
0 |
|||||||||||||||||||||||||||||||
Petroleos Mexicanos « |
4.750 |
Monthly |
07/06/2026 |
— |
¨ |
24 |
0 |
0 |
0 |
0 |
||||||||||||||||||||||||||||||||
GST |
Nissan Motor Co. Ltd. |
1.000 |
Quarterly |
12/20/2030 |
2.400 |
JPY |
20,000 |
(11 |
) |
4 |
0 |
(7 |
) | |||||||||||||||||||||||||||||
JPM |
Nissan Motor Co. Ltd. |
1.000 |
Quarterly |
12/20/2030 |
2.400 |
20,000 |
(10 |
) |
3 |
0 |
(7 |
) | ||||||||||||||||||||||||||||||
MYC |
Colombia Government International Bonds |
1.000 |
Quarterly |
06/20/2036 |
2.387 |
$ |
4,410 |
(607 |
) |
152 |
0 |
(455 |
) | |||||||||||||||||||||||||||||
Petroleos Mexicanos |
1.000 |
Quarterly |
12/20/2028 |
1.573 |
900 |
(176 |
) |
164 |
0 |
(12 |
) | |||||||||||||||||||||||||||||||
$ |
(1,878 |
) |
$ |
696 |
$ |
195 |
$ |
(1,377 |
) | |||||||||||||||||||||||||||||||||
TOTAL RETURN SWAPS ON SECURITIES
Counterparty |
Pay/Receive (5) |
Underlying Reference |
# of Shares |
Financing Rate |
Payment Frequency |
Maturity Date |
Notional Amount |
Unrealized Appreciation/ (Depreciation) |
Swap Agreements, at Value |
|||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||
FAR |
Pay |
NVIDIA Corp. |
4,237 |
5.660% (SOFR plus a specified spread) |
Maturity |
07/29/2026 |
$ |
816 |
$ |
0 |
$ |
(32 |
) |
$ |
0 |
$ |
(32 |
) | ||||||||||||||||||
Total Swap Agreements |
$ |
(1,878 |
) |
$ |
664 |
$ |
195 |
$ |
(1,409 |
) | ||||||||||||||||||||||||||
FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged/(received) as of June 30, 2026:
Financial Derivative Assets |
Financial Derivative Liabilities |
|||||||||||||||||||||||||||||||||||||||||||||||
Counterparty |
Forward Foreign Currency Contracts |
Purchased Options |
Swap Agreements |
Total Over the Counter |
Forward Foreign Currency Contracts |
Written Options |
Swap Agreements |
Total Over the Counter |
Net Market Value of OTC Derivatives |
Collateral Pledged/ (Received) |
Net Exposure (6) |
|||||||||||||||||||||||||||||||||||||
BOA |
$ |
45 |
$ |
0 |
$ |
0 |
$ |
45 |
$ |
(595 |
) |
$ |
0 |
$ |
(280 |
) |
$ |
(875 |
) |
$ |
(830 |
) |
$ |
705 |
$ |
(125 |
) | |||||||||||||||||||||
BPS |
249 |
0 |
0 |
249 |
(49 |
) |
0 |
(114 |
) |
(163 |
) |
86 |
(260 |
) |
(174 |
) | ||||||||||||||||||||||||||||||||
BRC |
69 |
0 |
40 |
109 |
(100 |
) |
0 |
(49 |
) |
(149 |
) |
(40 |
) |
0 |
(40 |
) | ||||||||||||||||||||||||||||||||
BSH |
0 |
0 |
0 |
0 |
(639 |
) |
0 |
0 |
(639 |
) |
(639 |
) |
695 |
56 |
||||||||||||||||||||||||||||||||||
CBK |
56 |
0 |
0 |
56 |
(1,838 |
) |
0 |
(453 |
) |
(2,291 |
) |
(2,235 |
) |
1,934 |
(301 |
) | ||||||||||||||||||||||||||||||||
DUB |
57 |
0 |
155 |
212 |
(34 |
) |
0 |
0 |
(34 |
) |
178 |
(214 |
) |
(36 |
) | |||||||||||||||||||||||||||||||||
FAR |
191 |
0 |
0 |
191 |
0 |
0 |
(32 |
) |
(32 |
) |
159 |
0 |
159 |
|||||||||||||||||||||||||||||||||||
GLM |
22 |
0 |
0 |
22 |
(100 |
) |
0 |
0 |
(100 |
) |
(78 |
) |
271 |
193 |
||||||||||||||||||||||||||||||||||
GST |
0 |
0 |
0 |
0 |
0 |
0 |
(7 |
) |
(7 |
) |
(7 |
) |
0 |
(7 |
) | |||||||||||||||||||||||||||||||||
JPM |
8 |
0 |
0 |
8 |
(5 |
) |
0 |
(7 |
) |
(12 |
) |
(4 |
) |
0 |
(4 |
) | ||||||||||||||||||||||||||||||||
MBC |
272 |
0 |
0 |
272 |
(69 |
) |
0 |
0 |
(69 |
) |
203 |
0 |
203 |
|||||||||||||||||||||||||||||||||||
MYC |
0 |
0 |
0 |
0 |
0 |
0 |
(467 |
) |
(467 |
) |
(467 |
) |
666 |
199 |
||||||||||||||||||||||||||||||||||
SCX |
1 |
0 |
0 |
1 |
0 |
0 |
0 |
0 |
1 |
0 |
1 |
|||||||||||||||||||||||||||||||||||||
74 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
Financial Derivative Assets |
Financial Derivative Liabilities |
|||||||||||||||||||||||||||||||||||||||||||||||
Counterparty |
Forward Foreign Currency Contracts |
Purchased Options |
Swap Agreements |
Total Over the Counter |
Forward Foreign Currency Contracts |
Written Options |
Swap Agreements |
Total Over the Counter |
Net Market Value of OTC Derivatives |
Collateral Pledged/ (Received) |
Net Exposure (6) |
|||||||||||||||||||||||||||||||||||||
SOG |
$ |
2,956 |
$ |
0 |
$ |
0 |
$ |
2,956 |
$ |
(549 |
) |
$ |
0 |
$ |
0 |
(549 |
) |
$ |
2,407 |
$ |
(2,400 |
) |
$ |
7 |
||||||||||||||||||||||||
SSB |
43 |
0 |
0 |
43 |
(43 |
) |
0 |
0 |
(43 |
) |
0 |
0 |
0 |
|||||||||||||||||||||||||||||||||||
UAG |
726 |
0 |
0 |
726 |
(299 |
) |
0 |
0 |
(299 |
) |
427 |
(380 |
) |
47 |
||||||||||||||||||||||||||||||||||
Total Over the Counter |
$ |
4,695 |
$ |
0 |
$ |
195 |
$ |
4,890 |
$ |
(4,320 |
) |
$ |
0 |
$ |
(1,409 |
) |
$ |
(5,729 |
) |
|||||||||||||||||||||||||||||
(q) |
Securities with an aggregate market value of $4,271 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of June 30, 2026. |
¨ |
Implied credit spread is not available due to significant unobservable inputs being used in the fair valuation. See Note 3, Investment Valuation and Fair Value Measurements, in the Notes to Financial Statements for more information. |
(1) |
If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
(2) |
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
(3) |
The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
(4) |
The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the underlying referenced instrument’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
(5) |
Receive represents that the Fund receives payments for any positive net return on the underlying reference. The Fund makes payments for any negative net return on such underlying reference. Pay represents that the Fund receives payments for any negative net return on the underlying reference. The Fund makes payments for any positive net return on such underlying reference. |
(6) |
Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information. |
FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS
The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 7, Principal and Other Risks, in the Notes to Financial Statements on risks of the Fund.
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of June 30, 2026:
Derivatives not accounted for as hedging instruments |
||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Exchange Contracts |
Interest Rate Contracts |
Total |
|||||||||||||||||||
Financial Derivative Instruments - Assets |
||||||||||||||||||||||||
Exchange-traded or centrally cleared |
||||||||||||||||||||||||
Swap Agreements |
$ |
0 |
$ |
25 |
$ |
0 |
$ |
0 |
$ |
3,766 |
$ |
3,791 |
||||||||||||
Over the counter |
||||||||||||||||||||||||
Forward Foreign Currency Contracts |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
4,695 |
$ |
0 |
$ |
4,695 |
||||||||||||
Swap Agreements |
0 |
195 |
0 |
0 |
0 |
195 |
||||||||||||||||||
$ |
0 |
$ |
195 |
$ |
0 |
$ |
4,695 |
$ |
0 |
$ |
4,890 |
|||||||||||||
$ |
0 |
$ |
220 |
$ |
0 |
$ |
4,695 |
$ |
3,766 |
$ |
8,681 |
|||||||||||||
Financial Derivative Instruments - Liabilities |
||||||||||||||||||||||||
Exchange-traded or centrally cleared |
||||||||||||||||||||||||
Swap Agreements |
$ |
0 |
$ |
8 |
$ |
0 |
$ |
0 |
$ |
3,796 |
$ |
3,804 |
||||||||||||
Over the counter |
||||||||||||||||||||||||
Forward Foreign Currency Contracts |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
4,320 |
$ |
0 |
$ |
4,320 |
||||||||||||
Swap Agreements |
0 |
1,377 |
32 |
0 |
0 |
1,409 |
||||||||||||||||||
$ |
0 |
$ |
1,377 |
$ |
32 |
$ |
4,320 |
$ |
0 |
$ |
5,729 |
|||||||||||||
$ |
0 |
$ |
1,385 |
$ |
32 |
$ |
4,320 |
$ |
3,796 |
$ |
9,533 |
|||||||||||||
See Accompanying Notes |
ANNUAL REPORT |
| |
JUNE 30, 2026 |
75 |
Schedule of Investments |
PIMCO High Income Fund |
(Cont.) |
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended June 30, 2026:
Derivatives not accounted for as hedging instruments |
||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Exchange Contracts |
Interest Rate Contracts |
Total |
|||||||||||||||||||
Net Realized Gain (Loss) on Financial Derivative Instruments |
||||||||||||||||||||||||
Exchange-traded or centrally cleared |
||||||||||||||||||||||||
Futures |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
(57 |
) |
$ |
(57 |
) | ||||||||||
Swap Agreements |
0 |
458 |
0 |
0 |
4,535 |
4,993 |
||||||||||||||||||
$ |
0 |
$ |
458 |
$ |
0 |
$ |
0 |
$ |
4,478 |
$ |
4,936 |
|||||||||||||
Over the counter |
||||||||||||||||||||||||
Forward Foreign Currency Contracts |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
48 |
$ |
0 |
$ |
48 |
||||||||||||
Written Options |
0 |
0 |
0 |
112 |
0 |
112 |
||||||||||||||||||
Swap Agreements |
0 |
269 |
0 |
0 |
0 |
269 |
||||||||||||||||||
$ |
0 |
$ |
269 |
$ |
0 |
$ |
160 |
$ |
0 |
$ |
429 |
|||||||||||||
$ |
0 |
$ |
727 |
$ |
0 |
$ |
160 |
$ |
4,478 |
$ |
5,365 |
|||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
||||||||||||||||||||||||
Exchange-traded or centrally cleared |
||||||||||||||||||||||||
Swap Agreements |
$ |
0 |
$ |
16 |
$ |
0 |
$ |
0 |
$ |
(11,797 |
) |
$ |
(11,781 |
) | ||||||||||
Over the counter |
||||||||||||||||||||||||
Forward Foreign Currency Contracts |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
4,104 |
$ |
0 |
$ |
4,104 |
||||||||||||
Swap Agreements |
0 |
394 |
(32 |
) |
0 |
0 |
362 |
|||||||||||||||||
$ |
0 |
$ |
394 |
$ |
(32 |
) |
$ |
4,104 |
$ |
0 |
$ |
4,466 |
||||||||||||
$ |
0 |
$ |
410 |
$ |
(32 |
) |
$ |
4,104 |
$ |
(11,797 |
) |
$ |
(7,315 |
) | ||||||||||
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2026 in valuing the Fund’s assets and liabilities:
Category and Subcategory |
Level 1 |
Level 2 |
Level 3 |
Fair Value at 06/30/2026 |
||||||||||||
Investments in Securities, at Value |
||||||||||||||||
Loan Participations and Assignments |
$ |
0 |
$ |
143,142 |
$ |
45,105 |
$ |
188,247 |
||||||||
Corporate Bonds & Notes |
||||||||||||||||
Banking & Finance |
0 |
78,376 |
0 |
78,376 |
||||||||||||
Industrials |
0 |
242,090 |
21,892 |
263,982 |
||||||||||||
Utilities |
0 |
38,915 |
169 |
39,084 |
||||||||||||
Convertible Bonds & Notes |
||||||||||||||||
Industrials |
0 |
31,106 |
0 |
31,106 |
||||||||||||
Municipal Bonds & Notes |
||||||||||||||||
Michigan |
0 |
1,861 |
0 |
1,861 |
||||||||||||
Pennsylvania |
0 |
4,182 |
0 |
4,182 |
||||||||||||
Texas |
0 |
7,858 |
0 |
7,858 |
||||||||||||
West Virginia |
0 |
6,634 |
0 |
6,634 |
||||||||||||
U.S. Government Agencies |
0 |
30,770 |
9,234 |
40,004 |
||||||||||||
U.S. Treasury Obligations |
0 |
863 |
0 |
863 |
||||||||||||
Non-Agency Mortgage-Backed Securities |
0 |
81,115 |
0 |
81,115 |
||||||||||||
Asset-Backed Securities |
||||||||||||||||
Automobile ABS Other |
0 |
2,436 |
0 |
2,436 |
||||||||||||
Home Equity Other |
0 |
45,409 |
0 |
45,409 |
||||||||||||
Whole Loan Collateral |
0 |
51,120 |
0 |
51,120 |
||||||||||||
Other ABS |
0 |
12,210 |
1,445 |
13,655 |
||||||||||||
Sovereign Issues |
0 |
97,463 |
0 |
97,463 |
||||||||||||
Common Stocks |
||||||||||||||||
Communication Services |
3,940 |
0 |
3,874 |
7,814 |
||||||||||||
Consumer Discretionary |
0 |
0 |
21 |
21 |
||||||||||||
Financials |
11,019 |
7,392 |
0 |
18,411 |
||||||||||||
Industrials |
0 |
0 |
19,212 |
19,212 |
||||||||||||
Information Technology |
848 |
0 |
0 |
848 |
||||||||||||
Real Estate |
316 |
0 |
0 |
316 |
||||||||||||
Warrants |
||||||||||||||||
Communication Services |
0 |
0 |
1,439 |
1,439 |
||||||||||||
Preferred Securities |
||||||||||||||||
Banking & Finance |
0 |
20,427 |
11,026 |
31,453 |
||||||||||||
Industrials |
0 |
2,489 |
2,884 |
5,373 |
||||||||||||
Real Estate Investment Trusts |
||||||||||||||||
Real Estate |
2,528 |
0 |
0 |
2,528 |
||||||||||||
Category and Subcategory |
Level 1 |
Level 2 |
Level 3 |
Fair Value at 06/30/2026 |
||||||||||||
Short-Term Instruments |
||||||||||||||||
Egypt Treasury Bills |
$ |
0 |
$ |
1,660 |
$ |
0 |
$ |
1,660 |
||||||||
Nigeria Treasury Bills |
0 |
18,561 |
0 |
18,561 |
||||||||||||
U.S. Treasury Bills |
0 |
4,687 |
0 |
4,687 |
||||||||||||
$ |
18,651 |
$ |
930,766 |
$ |
116,301 |
$ |
1,065,718 |
|||||||||
Investments in Affiliates, at Value |
||||||||||||||||
Short-Term Instruments |
||||||||||||||||
Central Funds Used for Cash Management Purposes |
$ |
71,623 |
$ |
0 |
$ |
0 |
$ |
71,623 |
||||||||
Total Investments |
$ |
90,274 |
$ |
930,766 |
$ |
116,301 |
$ |
1,137,341 |
||||||||
Financial Derivative Instruments - Assets |
||||||||||||||||
Exchange-traded or centrally cleared |
0 |
3,791 |
0 |
3,791 |
||||||||||||
Over the counter |
0 |
4,735 |
155 |
4,890 |
||||||||||||
$ |
0 |
$ |
8,526 |
$ |
155 |
$ |
8,681 |
|||||||||
Financial Derivative Instruments - Liabilities |
||||||||||||||||
Exchange-traded or centrally cleared |
0 |
(3,804 |
) |
0 |
(3,804 |
) | ||||||||||
Over the counter |
0 |
(5,729 |
) |
0 |
(5,729 |
) | ||||||||||
$ |
0 |
$ |
(9,533 |
) |
$ |
0 |
$ |
(9,533 |
) | |||||||
Total Financial Derivative Instruments |
$ |
0 |
$ |
(1,007 |
) |
$ |
155 |
$ |
(852 |
) | ||||||
Totals |
$ |
90,274 |
$ |
929,759 |
$ |
116,456 |
$ |
1,136,489 |
||||||||
76 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Fund during the period ended June 30, 2026:
Category and Subcategory |
Beginning Balance at 06/30/2025 |
Net Purchases (1) |
Net Sales/ Settlements (1) |
Accrued Discounts/ (Premiums) |
Realized Gain/(Loss) |
Net Change in Unrealized Appreciation/ (Depreciation) (2) |
Transfers into Level 3 |
Transfers out of Level 3 |
Ending Balance at 06/30/2026 |
Net Change in Unrealized Appreciation/ (Depreciation) on Investments Held at 06/30/2026 (2) |
||||||||||||||||||||||||||||||
Investments in Securities, at Value |
||||||||||||||||||||||||||||||||||||||||
Loan Participations and Assignments |
$ |
41,013 |
$ |
8,259 |
$ |
(20,096 |
) |
$ |
136 |
$ |
154 |
$ |
(2,554 |
) |
$ |
18,193 |
$ |
0 |
$ |
45,105 |
$ |
(419 |
) | |||||||||||||||||
Corporate Bonds & Notes |
||||||||||||||||||||||||||||||||||||||||
Banking & Finance |
302 |
0 |
(7 |
) |
0 |
0 |
18 |
0 |
(313 |
) |
0 |
0 |
||||||||||||||||||||||||||||
Industrials |
19,641 |
1,751 |
(1,502 |
) |
22 |
0 |
1,980 |
0 |
0 |
21,892 |
1,579 |
|||||||||||||||||||||||||||||
Utilities |
0 |
129 |
0 |
(3 |
) |
0 |
43 |
0 |
0 |
169 |
43 |
|||||||||||||||||||||||||||||
U.S. Government Agencies |
8,262 |
0 |
(249 |
) |
37 |
81 |
1,103 |
0 |
0 |
9,234 |
1,097 |
|||||||||||||||||||||||||||||
Asset-Backed Securities |
||||||||||||||||||||||||||||||||||||||||
Other ABS |
1,468 |
0 |
(22 |
) |
0 |
(14,261 |
) |
14,213 |
47 |
0 |
1,445 |
(67 |
) | |||||||||||||||||||||||||||
Common Stocks |
||||||||||||||||||||||||||||||||||||||||
Communication Services |
10,752 |
0 |
(9,497 |
) |
0 |
5,041 |
(2,422 |
) |
0 |
0 |
3,874 |
3,660 |
||||||||||||||||||||||||||||
Consumer Discretionary |
20 |
0 |
0 |
0 |
0 |
1 |
0 |
0 |
21 |
1 |
||||||||||||||||||||||||||||||
Financials |
7,671 |
0 |
(7,860 |
) |
0 |
(8,060 |
) |
8,249 |
0 |
0 |
0 |
0 |
||||||||||||||||||||||||||||
Health Care |
27,263 |
0 |
(24,380 |
) |
0 |
(853 |
) |
(2,030 |
) |
0 |
0 |
0 |
0 |
|||||||||||||||||||||||||||
Industrials |
16,246 |
408 |
0 |
0 |
0 |
2,558 |
0 |
0 |
19,212 |
2,558 |
||||||||||||||||||||||||||||||
Real Estate (3) |
15 |
0 |
0 |
0 |
0 |
301 |
0 |
(316 |
) |
0 |
0 |
|||||||||||||||||||||||||||||
Warrants |
||||||||||||||||||||||||||||||||||||||||
Communication Services |
2,095 |
765 |
(1,888 |
) |
0 |
499 |
(32 |
) |
0 |
0 |
1,439 |
674 |
||||||||||||||||||||||||||||
Financials |
1 |
0 |
(3 |
) |
0 |
(8,989 |
) |
8,991 |
0 |
0 |
0 |
0 |
||||||||||||||||||||||||||||
Preferred Securities |
||||||||||||||||||||||||||||||||||||||||
Banking & Finance |
0 |
10,554 |
0 |
0 |
0 |
472 |
0 |
0 |
11,026 |
472 |
||||||||||||||||||||||||||||||
Industrials |
3,254 |
407 |
0 |
0 |
0 |
(777 |
) |
0 |
0 |
2,884 |
(777 |
) | ||||||||||||||||||||||||||||
$ |
138,003 |
$ |
22,273 |
$ |
(65,504 |
) |
$ |
192 |
$ |
(26,388 |
) |
$ |
30,114 |
$ |
18,240 |
$ |
(629 |
) |
$ |
116,301 |
$ |
8,821 |
||||||||||||||||||
Financial Derivative Instruments |
||||||||||||||||||||||||||||||||||||||||
Over the counter |
$ |
197 |
$ |
0 |
$ |
(1 |
) |
$ |
0 |
$ |
0 |
$ |
(41 |
) |
$ |
0 |
$ |
0 |
$ |
155 |
$ |
(41 |
) | |||||||||||||||||
Financial Derivative Instruments |
||||||||||||||||||||||||||||||||||||||||
Over the counter |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
(5 |
) |
$ |
42 |
$ |
(37 |
) |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
0 |
||||||||||||||||||
Totals |
$ |
138,200 |
$ |
22,273 |
$ |
(65,505 |
) |
$ |
187 |
$ |
(26,346 |
) |
$ |
30,036 |
$ |
18,240 |
$ |
(629 |
) |
$ |
116,456 |
$ |
8,780 |
|||||||||||||||||
The following is a summary of significant unobservable inputs used in the fair valuations of assets and liabilities categorized within Level 3 of the fair value hierarchy:
Category and Subcategory |
Ending Balance at 06/30/2026 |
Valuation Technique |
Unobservable Inputs |
(% Unless Noted Otherwise) |
||||||||||||||||
Input Value(s) |
Weighted Average |
|||||||||||||||||||
Investments in Securities, at Value |
||||||||||||||||||||
Loan Participations and Assignments |
$ |
16,845 |
Discounted Cash Flow |
Discount Rate |
6.790 - 9.012 |
8.347 |
||||||||||||||
20,442 |
Third Party Vendor |
Broker Quote |
57.500 - 100.125 |
94.665 |
||||||||||||||||
4,330 |
Indicative Market Quotation |
Broker Quote |
101.250 |
— |
||||||||||||||||
3,488 |
Recent Transaction |
Purchase Price |
100.000 |
— |
||||||||||||||||
Corporate Bonds & Notes |
||||||||||||||||||||
Industrials |
21,892 |
Comparable Companies / Discounted Cash Flow |
EBITDA Multiple/Discount Rate |
X/% |
13.000/10.250 |
— |
||||||||||||||
Utilities |
169 |
Indicative Market Quotation |
Broker Quote |
EUR |
13.500 |
— |
||||||||||||||
U.S. Government Agencies |
9,234 |
Discounted Cash Flow |
Discount Rate |
9.827 |
— |
|||||||||||||||
Asset-Backed Secuities |
||||||||||||||||||||
Other ABS |
1,398 |
Discounted Cash Flow |
Discount Rate |
12.000 - 20.000 |
16.042 |
|||||||||||||||
47 |
Expected Recovery |
Price |
5.880 |
— |
||||||||||||||||
Common Stocks |
||||||||||||||||||||
Communication Services |
3,363 |
Indicative Market Quotation |
Broker Quote |
$ |
15.125 |
— |
||||||||||||||
511 |
Reference Instrument |
Liquidity Discount |
14.000 |
— |
||||||||||||||||
Consumer Discretionary |
21 |
Expected Recovery |
Price |
$ |
— |
— |
||||||||||||||
Industrials |
12,379 |
Comparable Companies / Discounted Cash Flow |
EBITDA Multiple/Discount Rate |
X/% |
13.000/10.250 |
— |
||||||||||||||
1,260 |
Indicative Market Quotation/Recent Transaction |
Broker Quote/Purchase Price |
$/$ |
3.250/2.000 |
— |
|||||||||||||||
5,573 |
Indicative Market Quotation |
Broker Quote |
$ |
0.656 - 22.917 |
22.687 |
|||||||||||||||
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 77 |
Schedule of Investments |
PIMCO High Income Fund |
(Cont.) |
June 30, 2026 |
Category and Subcategory |
Ending Balance at 06/30/2026 |
Valuation Technique |
Unobservable Inputs |
(% Unless Noted Otherwise) |
||||||||||||||||
Input Value(s) |
Weighted Average |
|||||||||||||||||||
Warrants |
||||||||||||||||||||
Communication Services |
$ |
1,439 |
Other Valuation Techniques (4) |
— |
— |
|||||||||||||||
Preferred Securities |
||||||||||||||||||||
Banking & Finance |
4,583 |
Discounted Cash Flow |
Discount Rate |
11.630 |
— |
|||||||||||||||
6,443 |
Recent transaction |
Purchase Price |
$ |
1.000 |
— |
|||||||||||||||
Industrials |
286 |
Comparable Companies |
Revenue/EBITDA Multiple |
X |
4.625/18.000 |
— |
||||||||||||||
2,598 |
Discounted Cash Flow |
Discount Rate |
26.880 |
— |
||||||||||||||||
Financial Derivative Instruments - Assets |
||||||||||||||||||||
Over the counter |
155 |
Indicative Market Quotation |
Broker Quote |
0.053 - 5.109 |
5.106 |
|||||||||||||||
Total |
$ |
116,456 |
||||||||||||||||||
(1) |
Net Purchases and Settlements for Financial Derivative Instruments may include payments made or received upon entering into swap agreements to compensate for differences between the stated terms of the swap agreement and prevailing market conditions. |
(2) |
Any difference between Net Change in Unrealized Appreciation/(Depreciation) and Net Change in Unrealized Appreciation/(Depreciation) on Investments Held at June 30, 2026 may be due to an investment no longer held or categorized as Level 3 at period end. |
(3) |
Sector type updated from Common Stocks Consumer Discretionary to Real Estate since prior fiscal year end. |
(4) |
Includes valuation techniques not defined in the Notes to Financial Statements as securities valued using such techniques are not considered significant to the fund. |
78 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
Schedule of Investments |
PIMCO Income Strategy Fund |
June 30, 2026 |
(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
INVESTMENTS IN SECURITIES 88.0% |
||||||||||||
LOAN PARTICIPATIONS AND ASSIGNMENTS 25.6% |
||||||||||||
Altice France SA |
||||||||||||
10.548% (TSFR3M + 3.673%) due 05/31/2031 ~ |
$ |
1,868 |
$ |
1,911 |
||||||||
Asurion LLC |
||||||||||||
7.763% (TSFR3M + 3.663%) due 08/19/2028 ~ |
1,674 |
1,674 |
||||||||||
Auris Luxembourg III SARL |
||||||||||||
6.913% - 6.982% (TSFR3M + 3.732%) due 02/28/2029 ~ |
98 |
99 |
||||||||||
Bausch & Lomb Corp. |
||||||||||||
7.394% (TSFR1M + 3.644%) due 01/15/2031 ~ |
298 |
299 |
||||||||||
Bausch Health Cos., Inc. |
||||||||||||
9.894% (TSFR1M + 3.644%) due 10/08/2030 ~ |
1,980 |
1,925 |
||||||||||
BDO USA PC |
||||||||||||
8.121% (TSFR1M + 3.621%) due 08/31/2028 «~ |
102 |
101 |
||||||||||
8.648% (TSFR3M + 3.643%) due 08/31/2028 «~ |
1,327 |
1,325 |
||||||||||
Cengage Learning, Inc. |
||||||||||||
6.638% - 6.653% (TSFR1M + 3.644%) due 03/24/2031 ~ |
786 |
779 |
||||||||||
Central Parent, Inc. |
||||||||||||
6.982% (TSFR3M + 3.732%) due 07/06/2029 ~ |
2,856 |
1,885 |
||||||||||
Charlotte Buyer, Inc. |
||||||||||||
7.874% (TSFR1M + 3.624%) due 02/11/2028 ~ |
1,683 |
1,684 |
||||||||||
Columbus McKinnon Corp. |
||||||||||||
7.232% (TSFR3M + 3.732%) due 02/03/2033 ~ |
440 |
440 |
||||||||||
Coreweave Compute Acquisition Co. IV LLC |
||||||||||||
9.661% - 9.732% (TSFR3M + 3.666%) due 05/16/2029 «~ |
1,339 |
1,381 |
||||||||||
Databricks, Inc. |
||||||||||||
TBD% - 1.000% due 01/05/2032 µ |
91 |
91 |
||||||||||
8.114% (TSFR1M + 3.612%) due 01/05/2032 ~ |
409 |
409 |
||||||||||
Dialysis Holdco LLC |
||||||||||||
9.644% (TSFR1M + 3.644%) due 11/26/2030 «~ |
1,969 |
2,000 |
||||||||||
DTI Holdco, Inc. |
||||||||||||
7.644% (TSFR1M + 3.644%) due 04/26/2029 ~ |
2,257 |
2,063 |
||||||||||
Encina Private Credit LLC |
||||||||||||
TBD% due 11/30/2026 «~ |
55 |
47 |
||||||||||
Finastra USA, Inc. |
||||||||||||
7.746% (TSFR6M + 3.751%) due 09/15/2032 ~ |
1,272 |
1,176 |
||||||||||
Forward Air Corp. |
||||||||||||
8.163% (TSFR3M + 3.663%) due 12/19/2030 ~ |
219 |
207 |
||||||||||
Galaxy U.S. Opco, Inc. (5.663% Cash and 3.250% PIK) |
||||||||||||
8.913% (TSFR3M + 3.663%) due 07/31/2030 ~(b) |
1,824 |
1,677 |
||||||||||
Gateway Casinos & Entertainment Ltd. |
||||||||||||
9.918% (TSFR3M + 3.668%) due 12/18/2030 ~ |
3,139 |
3,134 |
||||||||||
Guardian |
||||||||||||
TBD% - 1.000% due 08/29/2032 «µ |
100 |
100 |
||||||||||
9.121% (TSFR6M + 3.618%) due 08/29/2032 «~ |
600 |
600 |
||||||||||
Houghton Mifflin Harcourt Publishing Co. |
||||||||||||
9.013% (TSFR3M + 3.663%) due 04/09/2029 ~ |
1,137 |
903 |
||||||||||
iHeartCommunications, Inc. |
||||||||||||
9.533% (TSFR1M + 3.644%) due 05/01/2029 ~ |
299 |
286 |
||||||||||
Ivanti Software, Inc. |
||||||||||||
8.414% (TSFR3M + 3.658%) due 06/01/2029 ~ |
2,235 |
989 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
J&J Ventures Gaming LLC |
||||||||||||
8.758% (TSFR1M + 3.644%) due 04/26/2028 «~ |
$ |
776 |
$ |
776 |
||||||||
LBM Acquisition LLC |
||||||||||||
7.502% (TSFR1M + 3.652%) due 06/06/2031 ~ |
1,990 |
1,674 |
||||||||||
Lealand Finance Co. BV |
||||||||||||
6.758% (TSFR1M + 3.644%) due 06/30/2027 ~ |
40 |
39 |
||||||||||
Lealand Finance Co. BV (4.758% Cash and 3.000% PIK) |
||||||||||||
7.758% (TSFR1M + 3.644%) due 12/31/2027 ~(b) |
219 |
212 |
||||||||||
Magenta Security Holdings LLC |
||||||||||||
10.173% (TSFR3M + 3.663%) due 07/27/2028 ~ |
276 |
48 |
||||||||||
10.673% (TSFR3M + 3.663%) due 07/27/2028 ~ |
59 |
40 |
||||||||||
10.923% (TSFR3M + 3.663%) due 07/27/2028 ~ |
78 |
30 |
||||||||||
McAfee LLC |
||||||||||||
6.644% (TSFR1M + 3.644%) due 03/01/2029 ~ |
495 |
441 |
||||||||||
Mercury Aggregator LP |
||||||||||||
TBD% due 04/03/2027 « |
1,178 |
0 |
||||||||||
MI Windows & Doors LLC |
||||||||||||
6.394% (TSFR1M + 3.644%) due 03/28/2031 ~ |
97 |
96 |
||||||||||
MPH Acquisition Holdings LLC |
||||||||||||
7.413% (TSFR3M + 3.663%) due 12/31/2030 ~ |
508 |
510 |
||||||||||
8.263% (TSFR3M + 3.663%) due 12/31/2030 ~ |
4,203 |
3,712 |
||||||||||
Newfold Digital Holdings Group, Inc. |
||||||||||||
7.214% (TSFR1M + 3.612%) due 04/30/2029 ~ |
1,008 |
751 |
||||||||||
9.364% (TSFR1M + 3.612%) due 04/30/2029 ~ |
84 |
69 |
||||||||||
Nscale AS |
||||||||||||
TBD% - 8.664% (TSFR3M + 3.670%) due 08/23/2032 «~µ |
2,981 |
2,981 |
||||||||||
Ontario Gaming GTA LP |
||||||||||||
7.982% (TSFR3M + 3.732%) due 08/01/2030 ~ |
1,490 |
1,423 |
||||||||||
Padagis LLC |
||||||||||||
8.689% (TSFR3M + 3.677%) due 07/06/2028 «~ |
1,614 |
1,533 |
||||||||||
Paradigm Parent LLC |
||||||||||||
8.232% (TSFR3M + 3.732%) due 04/16/2032 ~ |
2,124 |
1,829 |
||||||||||
Peraton Corp. |
||||||||||||
7.513% (TSFR3M + 3.663%) due 02/01/2028 ~ |
4,479 |
4,054 |
||||||||||
Polaris Newco LLC |
||||||||||||
7.925% (TSFR3M + 3.663%) due 06/02/2028 ~ |
1,960 |
1,708 |
||||||||||
Poseidon Bidco SASU |
||||||||||||
7.504% due 03/13/2030 |
EUR |
1,600 |
530 |
|||||||||
Promotora de Informaciones SA |
||||||||||||
7.674% (EUR003M + 2.168%) due 12/31/2029 «~ |
11,414 |
12,749 |
||||||||||
QuidelOrtho Corp. |
||||||||||||
7.644% (TSFR1M + 3.644%) due 08/20/2032 ~ |
$ |
2,488 |
2,453 |
|||||||||
RealPage, Inc. |
||||||||||||
6.994% (TSFR3M + 3.732%) due 04/24/2028 ~ |
1,391 |
1,303 |
||||||||||
SCUR-Alpha 1503 GmbH |
||||||||||||
9.163% (TSFR3M + 3.663%) due 04/01/2030 ~ |
2,138 |
1,867 |
||||||||||
Spa Holdings 3 OYJ |
||||||||||||
8.244% (TSFR3M + 3.732%) due 05/23/2030 ~ |
1,985 |
1,979 |
||||||||||
Steenbok Lux Finco 2 SARL |
||||||||||||
1TBD% due 12/31/2028 |
EUR |
7,143 |
3,295 |
|||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
Stepstone Group Midco 2 GmbH |
||||||||||||
8.176% - 8.179% (TSFR6M + 3.679%) due 12/19/2031 ~ |
$ |
1,980 |
$ |
1,605 |
||||||||
Stonepeak Bayou Holdings LP |
||||||||||||
6.482% (TSFR3M + 3.732%) due 10/01/2032 ~ |
1,995 |
1,993 |
||||||||||
Subcalidora 2 |
||||||||||||
8.041% (EUR003M + 2.291%) due 08/14/2029 «~ |
EUR |
1,566 |
1,780 |
|||||||||
Syniverse Holdings, Inc. |
||||||||||||
10.732% (TSFR3M + 3.732%) due 05/13/2027 ~ |
$ |
4,761 |
4,153 |
|||||||||
Trident TPI Holdings, Inc. |
||||||||||||
7.482% (TSFR3M + 3.732%) due 09/15/2028 ~ |
1,683 |
1,618 |
||||||||||
U.S. Renal Care, Inc. |
||||||||||||
8.758% (TSFR1M + 3.644%) due 06/28/2028 ~ |
9,375 |
9,243 |
||||||||||
Unicorn Bay |
||||||||||||
13.000% due 12/31/2026 « |
HKD |
16,130 |
2,082 |
|||||||||
Virgin Media Investment Holdings Ltd. |
||||||||||||
6.978% due 08/01/2030 «~ |
GBP |
1,000 |
1,227 |
|||||||||
Vistra Zero Operating Co. LLC |
||||||||||||
5.644% (TSFR1M + 3.644%) due 04/30/2031 ~ |
$ |
199 |
199 |
|||||||||
Westmoreland Coal Co. |
||||||||||||
8.000% due 03/15/2029 « |
700 |
403 |
||||||||||
Total Loan Participations and Assignments (Cost $107,051) |
97,590 |
|||||||||||
CORPORATE BONDS & NOTES 29.0% |
||||||||||||
BANKING & FINANCE 6.9% |
||||||||||||
Armor Holdco, Inc. |
||||||||||||
8.500% due 11/15/2029 |
2,000 |
2,013 |
||||||||||
Armor RE II Ltd. |
||||||||||||
8.810% (T-BILL 3MO + 5.000%) due 06/07/2033 ~ |
250 |
250 |
||||||||||
Barclays PLC |
||||||||||||
6.490% due 09/13/2029 • |
200 |
207 |
||||||||||
6.692% due 09/13/2034 • |
300 |
324 |
||||||||||
7.437% due 11/02/2033 • |
970 |
1,081 |
||||||||||
BOI Finance BV |
||||||||||||
7.500% due 02/16/2027 |
EUR |
1,500 |
1,749 |
|||||||||
CaixaBank SA |
||||||||||||
6.840% due 09/13/2034 • |
$ |
200 |
218 |
|||||||||
CBRE Services, Inc. |
||||||||||||
5.950% due 08/15/2034 |
400 |
417 |
||||||||||
Credicorp Capital Sociedad Titulizadora SA |
||||||||||||
10.100% due 12/15/2043 |
PEN |
492 |
158 |
|||||||||
Credit Suisse AG AT1 Claim |
$ |
3,840 |
1,354 |
|||||||||
FS KKR Capital Corp. |
||||||||||||
7.500% due 08/01/2031 |
400 |
399 |
||||||||||
7.875% due 01/15/2029 |
2,000 |
2,054 |
||||||||||
GSPA Monetization Trust |
||||||||||||
6.422% due 10/09/2029 |
707 |
708 |
||||||||||
Hestia Re Ltd. |
||||||||||||
3.620% (BNMMDTSC + 0.100%) due 04/22/2029 ~ |
13 |
8 |
||||||||||
ION Platform Finance U.S., Inc./ION Platform Finance SARL |
||||||||||||
5.750% due 05/15/2028 |
100 |
92 |
||||||||||
8.750% due 05/01/2029 |
1,080 |
965 |
||||||||||
9.500% due 05/30/2029 |
720 |
658 |
||||||||||
JAB Holdings BV |
||||||||||||
3.750% due 05/28/2051 |
250 |
174 |
||||||||||
4.500% due 04/08/2052 |
100 |
77 |
||||||||||
Kona Spc Ltd. |
||||||||||||
5.718% due 09/15/2026 «• |
EUR |
1,000 |
1,143 |
|||||||||
Nuveen Churchill Direct Lending Corp. |
||||||||||||
6.650% due 03/15/2030 |
$ |
2,000 |
2,011 |
|||||||||
Purple Re Ltd. |
||||||||||||
10.050% (JMMMUSTF + 6.500%) due 06/07/2033 ~ |
250 |
250 |
||||||||||
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 79 |
Schedule of Investments |
PIMCO Income Strategy Fund |
(Cont.) |
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
Sammons Financial Group, Inc. |
||||||||||||
6.875% due 04/15/2034 |
$ |
100 |
$ |
107 |
||||||||
Sanders Re III Ltd. |
||||||||||||
15.870% (BRMMUSDF + 12.320%) due 04/09/2029 ~ |
372 |
122 |
||||||||||
Societe Generale SA |
||||||||||||
6.691% due 01/10/2034 • |
400 |
428 |
||||||||||
Titanium 2l Bondco SARL |
||||||||||||
6.250% due 01/14/2031 |
EUR |
3,784 |
633 |
|||||||||
Uniti Group LP/Uniti Fiber Holdings, Inc./CSL Capital LLC |
||||||||||||
6.000% due 01/15/2030 |
$ |
4,868 |
4,759 |
|||||||||
Ursa Re II Ltd. |
||||||||||||
11.260% (MSMMUSTF + 7.750%) due 06/07/2028 ~ |
250 |
257 |
||||||||||
Ursa Re Ltd. |
||||||||||||
12.800% (JMMMUSTF + 9.250%) due 12/07/2028 ~ |
400 |
408 |
||||||||||
VICI Properties LP/VICI Note Co., Inc. |
||||||||||||
3.875% due 02/15/2029 |
1,800 |
1,749 |
||||||||||
4.500% due 01/15/2028 |
1,280 |
1,272 |
||||||||||
Winston RE Ltd. |
||||||||||||
13.730% (BNMMDTSC + 10.210%) due 02/26/2031 ~ |
250 |
257 |
||||||||||
26,302 |
||||||||||||
INDUSTRIALS 17.0% |
||||||||||||
Beignet Investor LLC |
||||||||||||
6.581% due 05/30/2049 |
4,930 |
5,032 |
||||||||||
Crescent Energy Finance LLC |
||||||||||||
7.875% due 04/15/2032 (j) |
100 |
101 |
||||||||||
CVS Pass-Through Trust |
||||||||||||
7.507% due 01/10/2032 |
225 |
235 |
||||||||||
DISH DBS Corp. |
||||||||||||
5.250% due 12/01/2026 |
3,520 |
3,485 |
||||||||||
5.750% due 12/01/2028 |
3,560 |
3,452 |
||||||||||
Ecopetrol SA |
||||||||||||
8.375% due 01/19/2036 |
200 |
217 |
||||||||||
Fertitta Entertainment LLC/Fertitta Entertainment Finance Co., Inc. |
||||||||||||
6.750% due 01/15/2030 |
1,600 |
1,570 |
||||||||||
Flora Food Management BV |
||||||||||||
6.875% due 07/02/2029 |
EUR |
800 |
894 |
|||||||||
FMC Corp. |
||||||||||||
8.000% due 06/01/2031 |
$ |
100 |
104 |
|||||||||
Ford Motor Co. |
||||||||||||
7.700% due 05/15/2097 |
4,805 |
5,050 |
||||||||||
Great Canadian Gaming Corp./Raptor LLC |
||||||||||||
8.750% due 11/15/2029 |
100 |
100 |
||||||||||
Grupo Nutresa SA |
||||||||||||
8.000% due 05/12/2030 |
700 |
742 |
||||||||||
HCA, Inc. |
||||||||||||
7.500% due 11/15/2095 |
1,050 |
1,136 |
||||||||||
Incora Intermediate II LLC (0.500% PIK) |
||||||||||||
0.500% due 01/31/2030 «(b) |
5,240 |
5,240 |
||||||||||
Incora Top Holdco LLC |
||||||||||||
6.000% due 01/30/2033 «(i) |
3,589 |
5,657 |
||||||||||
JetBlue Airways Corp./JetBlue Loyalty LP |
||||||||||||
9.875% due 09/20/2031 (j) |
1,700 |
1,542 |
||||||||||
LifePoint Health, Inc. |
||||||||||||
9.875% due 08/15/2030 |
400 |
422 |
||||||||||
Miter Brands Acquisition Holdco, Inc./MIWD Borrower LLC |
||||||||||||
6.750% due 04/01/2032 |
100 |
99 |
||||||||||
National Mentor Holdings, Inc. |
||||||||||||
10.500% due 12/15/2030 |
1,700 |
1,793 |
||||||||||
New Albertsons LP |
||||||||||||
6.570% due 02/23/2028 |
2,800 |
2,818 |
||||||||||
Newfold Digital Holdings Group, Inc. |
||||||||||||
11.750% due 04/30/2029 |
673 |
453 |
||||||||||
Nissan Motor Co. Ltd. |
||||||||||||
7.500% due 07/17/2030 |
400 |
413 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
Olympus Water U.S. Holding Corp. |
||||||||||||
5.375% due 10/01/2029 |
EUR |
1,400 |
$ |
1,569 |
||||||||
Petroleos Mexicanos |
||||||||||||
6.700% due 02/16/2032 |
$ |
830 |
838 |
|||||||||
6.840% due 01/23/2030 |
400 |
411 |
||||||||||
8.750% due 06/02/2029 |
765 |
818 |
||||||||||
Skeena Resources Ltd. |
||||||||||||
8.500% due 04/01/2031 |
100 |
105 |
||||||||||
Topaz Solar Farms LLC |
||||||||||||
4.875% due 09/30/2039 |
725 |
644 |
||||||||||
5.750% due 09/30/2039 |
3,548 |
3,496 |
||||||||||
Toucan FinCo Ltd./Toucan FinCo Can, Inc./Toucan FinCo U.S. LLC |
||||||||||||
9.500% due 05/15/2030 |
1,900 |
1,793 |
||||||||||
Transocean International Ltd. |
||||||||||||
8.250% due 05/15/2029 (j) |
1,500 |
1,550 |
||||||||||
U.S. Renal Care, Inc. |
||||||||||||
10.625% due 06/28/2028 |
843 |
784 |
||||||||||
Ubisoft Entertainment SA |
||||||||||||
0.878% due 11/24/2027 (j) |
EUR |
1,500 |
1,517 |
|||||||||
Valaris Ltd. |
||||||||||||
8.375% due 04/30/2030 |
$ |
156 |
162 |
|||||||||
Vale SA |
||||||||||||
0.000% due 12/29/2049 ~(g) |
BRL |
60,000 |
4,665 |
|||||||||
Venture Global LNG, Inc. |
||||||||||||
9.500% due 02/01/2029 |
$ |
800 |
861 |
|||||||||
9.875% due 02/01/2032 |
1,200 |
1,281 |
||||||||||
Viridien |
||||||||||||
10.000% due 10/15/2030 |
1,983 |
2,108 |
||||||||||
Vmed O2 U.K. Financing I PLC |
||||||||||||
7.750% due 04/15/2032 |
700 |
633 |
||||||||||
Yinson Boronia Production BV |
||||||||||||
8.947% due 07/31/2042 |
777 |
855 |
||||||||||
64,645 |
||||||||||||
UTILITIES 5.1% |
||||||||||||
FORESEA Holding SA |
||||||||||||
7.500% due 06/15/2030 |
467 |
461 |
||||||||||
NGD Holdings BV |
||||||||||||
9.875% due 12/31/2029 |
109 |
107 |
||||||||||
Nova Securitisation SARL |
||||||||||||
5.750% due 02/03/2031 |
900 |
869 |
||||||||||
OI SA |
||||||||||||
8.500% due 12/31/2028 ^(c) |
15,147 |
161 |
||||||||||
10.000% due 06/30/2027 ^(c) |
7,304 |
3,561 |
||||||||||
Pacific Gas & Electric Co. |
||||||||||||
4.200% due 03/01/2029 |
900 |
887 |
||||||||||
4.450% due 04/15/2042 |
322 |
268 |
||||||||||
4.750% due 02/15/2044 |
996 |
845 |
||||||||||
Peru LNG SRL |
||||||||||||
5.375% due 03/22/2030 |
3,201 |
3,115 |
||||||||||
Qwest Corp. |
||||||||||||
7.750% due 05/01/2030 |
7,000 |
6,947 |
||||||||||
Uniti Group LP/Uniti Group Finance 2019, Inc./CSL Capital LLC |
||||||||||||
6.500% due 02/15/2029 |
1,400 |
1,390 |
||||||||||
Vistra Operations Co. LLC |
||||||||||||
6.950% due 10/15/2033 |
800 |
871 |
||||||||||
19,482 |
||||||||||||
Total Corporate Bonds & Notes (Cost $124,535) |
110,429 |
|||||||||||
CONVERTIBLE BONDS & NOTES 0.7% |
||||||||||||
INDUSTRIALS 0.7% |
||||||||||||
DISH Network Corp. |
||||||||||||
3.375% due 08/15/2026 |
1,600 |
1,553 |
||||||||||
Ubisoft Entertainment SA |
||||||||||||
2.375% due 11/15/2028 |
EUR |
900 |
1,010 |
|||||||||
Total Convertible Bonds & Notes (Cost $2,613) |
2,563 |
|||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
MUNICIPAL BONDS & NOTES 0.9% |
||||||||||||
MICHIGAN 0.3% |
||||||||||||
Detroit, Michigan General Obligation Bonds, Series 2014 |
||||||||||||
4.000% due 04/01/2044 |
$ |
1,286 |
$ |
1,052 |
||||||||
WEST VIRGINIA 0.6% |
||||||||||||
Tobacco Settlement Finance Authority, West Virginia Revenue Bonds, Series 2007 |
||||||||||||
0.000% due 06/01/2047 (f) |
21,900 |
2,195 |
||||||||||
Total Municipal Bonds & Notes (Cost $4,209) |
3,247 |
|||||||||||
U.S. GOVERNMENT AGENCIES 1.9% |
||||||||||||
Federal Home Loan Mortgage Corp. Military Housing Bonds Resecuritization Trust Certificates |
||||||||||||
0.700% due 11/25/2055 ~(a) |
15,233 |
893 |
||||||||||
5.992% due 11/25/2055 «~ |
3,615 |
2,675 |
||||||||||
Federal Home Loan Mortgage Corp. REMICS |
||||||||||||
2.586% due 11/15/2040 • |
90 |
76 |
||||||||||
3.000% due 11/15/2033 (a) |
270 |
8 |
||||||||||
Federal Home Loan Mortgage Corp. Seasoned Credit Risk Transfer Trust |
||||||||||||
1.948% due 11/25/2057 ~ |
94 |
36 |
||||||||||
2.237% due 08/25/2058 ~ |
469 |
179 |
||||||||||
2.239% due 08/25/2057 ~ |
467 |
140 |
||||||||||
3.396% due 05/25/2057 ~ |
277 |
121 |
||||||||||
3.506% due 10/25/2058 ~ |
481 |
216 |
||||||||||
3.618% due 05/25/2064 ~ |
297 |
143 |
||||||||||
4.564% due 02/25/2059 ~ |
564 |
238 |
||||||||||
5.477% due 05/25/2060 ~ |
293 |
160 |
||||||||||
7.654% due 03/25/2061 ~ |
96 |
58 |
||||||||||
Federal Home Loan Mortgage Corp. STACR REMICS Trust |
||||||||||||
11.428% due 11/25/2041 • |
1,900 |
1,947 |
||||||||||
Federal National Mortgage Association REMICS |
||||||||||||
2.308% due 02/25/2049 •(a) |
152 |
13 |
||||||||||
3.500% due 12/25/2032 - 12/25/2049 (a) |
812 |
73 |
||||||||||
3.880% due 12/25/2040 • |
107 |
103 |
||||||||||
4.000% due 11/25/2042 (a) |
408 |
36 |
||||||||||
Total U.S. Government Agencies (Cost $7,191) |
7,115 |
|||||||||||
U.S. TREASURY OBLIGATIONS 0.1% |
||||||||||||
U.S. Treasury Bonds |
||||||||||||
4.875% due 08/15/2045 (m) |
175 |
173 |
||||||||||
U.S. Treasury Notes |
||||||||||||
4.250% due 08/15/2035 |
257 |
254 |
||||||||||
Total U.S. Treasury Obligations (Cost $443) |
427 |
|||||||||||
NON-AGENCY MORTGAGE-BACKED SECURITIES 10.4% |
||||||||||||
Adjustable Rate Mortgage Trust |
||||||||||||
4.323% due 08/25/2036 • |
9,623 |
2,732 |
||||||||||
Banc of America Funding Trust |
||||||||||||
6.000% due 08/25/2036 |
282 |
264 |
||||||||||
BBCCRE Trust |
||||||||||||
4.216% due 08/10/2033 |
600 |
541 |
||||||||||
BCAP LLC Trust |
||||||||||||
3.618% due 03/27/2036 ~ |
503 |
340 |
||||||||||
4.440% due 03/26/2037 þ |
273 |
477 |
||||||||||
Bear Stearns ALT-A Trust |
||||||||||||
4.083% due 06/25/2046 • |
634 |
588 |
||||||||||
4.394% due 11/25/2036 ~ |
121 |
60 |
||||||||||
4.443% due 09/25/2035 ~ |
88 |
35 |
||||||||||
Bear Stearns ALT-A Trust II |
||||||||||||
4.119% due 09/25/2047 ~ |
1,603 |
745 |
||||||||||
CD Mortgage Trust |
||||||||||||
5.688% due 10/15/2048 |
108 |
102 |
||||||||||
Chase Mortgage Finance Trust |
||||||||||||
4.646% due 12/25/2035 ~ |
1 |
1 |
||||||||||
6.000% due 02/25/2037 |
298 |
107 |
||||||||||
6.000% due 07/25/2037 |
204 |
84 |
||||||||||
80 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
6.250% due 10/25/2036 |
$ |
512 |
$ |
183 |
||||||||
CHL Mortgage Pass-Through Trust |
||||||||||||
5.500% due 10/25/2035 |
141 |
73 |
||||||||||
6.250% due 09/25/2036 |
157 |
50 |
||||||||||
CLNY Trust |
||||||||||||
6.004% due 11/15/2038 • |
1,100 |
1,055 |
||||||||||
6.700% due 11/15/2038 • |
600 |
565 |
||||||||||
Countrywide Alternative Loan Trust |
||||||||||||
4.113% due 05/25/2037 • |
131 |
41 |
||||||||||
5.500% due 03/25/2035 |
97 |
37 |
||||||||||
5.500% due 12/25/2035 |
826 |
395 |
||||||||||
5.750% due 01/25/2035 |
35 |
35 |
||||||||||
5.935% due 04/25/2036 ~ |
51 |
48 |
||||||||||
6.000% due 02/25/2035 |
99 |
80 |
||||||||||
6.000% due 08/25/2036 • |
112 |
59 |
||||||||||
6.000% due 12/25/2036 |
1,318 |
357 |
||||||||||
6.000% due 04/25/2037 |
349 |
145 |
||||||||||
6.250% due 11/25/2036 |
174 |
125 |
||||||||||
6.250% due 12/25/2036 • |
615 |
238 |
||||||||||
6.500% due 08/25/2036 |
183 |
51 |
||||||||||
Countrywide Alternative Loan Trust Resecuritization |
||||||||||||
6.000% due 05/25/2036 |
638 |
332 |
||||||||||
6.000% due 08/25/2037 ~ |
330 |
160 |
||||||||||
CSMC Trust |
||||||||||||
3.904% due 11/10/2032 ~ |
1,000 |
74 |
||||||||||
8.044% due 07/15/2032 • |
3,147 |
3,089 |
||||||||||
Deutsche Alt-A Securities, Inc. Mortgage Loan Trust |
||||||||||||
4.163% due 06/25/2037 • |
1,786 |
1,614 |
||||||||||
Deutsche Mortgage Securities, Inc. Mortgage Loan Trust |
||||||||||||
5.713% due 06/25/2034 • |
1,742 |
1,764 |
||||||||||
Eurosail-U.K. PLC |
||||||||||||
7.866% due 06/13/2045 • |
GBP |
239 |
266 |
|||||||||
GS Mortgage-Backed Securities Trust |
||||||||||||
2.499% due 11/25/2061 ~(a) |
$ |
6,932 |
324 |
|||||||||
7.531% due 11/25/2061 ~ |
100 |
87 |
||||||||||
GSR Mortgage Loan Trust |
||||||||||||
6.000% due 02/25/2036 |
977 |
338 |
||||||||||
HarborView Mortgage Loan Trust |
||||||||||||
4.330% due 07/19/2035 ~ |
10 |
7 |
||||||||||
4.474% due 01/19/2035 • |
13 |
12 |
||||||||||
Hilton USA Trust |
||||||||||||
2.828% due 11/05/2035 |
1,400 |
1,167 |
||||||||||
IndyMac IMSC Mortgage Loan Trust |
||||||||||||
6.500% due 07/25/2037 |
1,642 |
477 |
||||||||||
JP Morgan Alternative Loan Trust |
||||||||||||
4.162% due 03/25/2037 ~ |
287 |
259 |
||||||||||
4.332% due 03/25/2036 ~ |
277 |
202 |
||||||||||
JP Morgan Chase Commercial Mortgage Securities Trust |
||||||||||||
5.102% due 07/05/2033 • |
1,182 |
1,025 |
||||||||||
5.272% due 11/15/2035 • |
1,300 |
327 |
||||||||||
5.622% due 11/15/2035 • |
600 |
87 |
||||||||||
5.973% due 02/15/2035 • |
823 |
795 |
||||||||||
7.923% due 02/15/2035 • |
1,892 |
1,645 |
||||||||||
JP Morgan Mortgage Trust |
||||||||||||
5.234% due 01/25/2037 ~ |
60 |
51 |
||||||||||
5.293% due 02/25/2036 ~ |
57 |
36 |
||||||||||
Lehman XS Trust |
||||||||||||
4.203% due 06/25/2047 • |
281 |
272 |
||||||||||
Merrill Lynch Mortgage Investors Trust |
||||||||||||
4.244% due 03/25/2036 ~ |
392 |
174 |
||||||||||
Morgan Stanley Mortgage Loan Trust |
||||||||||||
5.962% due 06/25/2036 ~ |
1,887 |
496 |
||||||||||
Morgan Stanley Residential Mortgage Loan Trust |
||||||||||||
0.325% due 01/25/2070 ~(a) |
3,242 |
13 |
||||||||||
1.358% due 01/25/2070 ~(a) |
3,242 |
102 |
||||||||||
7.082% due 01/25/2070 ~ |
200 |
195 |
||||||||||
New Residential Mortgage Loan Trust |
||||||||||||
0.250% due 12/25/2065 ~(a) |
10,180 |
50 |
||||||||||
0.277% due 11/25/2065 ~(a) |
17,495 |
81 |
||||||||||
1.606% due 11/25/2065 ~(a) |
17,495 |
572 |
||||||||||
1.664% due 12/25/2065 ~(a) |
10,180 |
367 |
||||||||||
6.566% due 12/25/2065 ~ |
160 |
144 |
||||||||||
6.587% due 11/25/2065 ~ |
250 |
230 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
RALI Trust |
||||||||||||
4.323% due 12/25/2045 • |
$ |
1,901 |
$ |
1,109 |
||||||||
Residential Asset Securitization Trust |
||||||||||||
5.750% due 02/25/2036 |
376 |
123 |
||||||||||
6.000% due 07/25/2037 |
1,761 |
603 |
||||||||||
6.250% due 09/25/2037 |
1,165 |
386 |
||||||||||
RFMSI Trust |
||||||||||||
6.000% due 09/25/2036 |
37 |
29 |
||||||||||
6.000% due 06/25/2037 |
505 |
410 |
||||||||||
Soho Trust |
||||||||||||
2.786% due 08/10/2038 ~ |
2,940 |
2,505 |
||||||||||
STARM Mortgage Loan Trust |
||||||||||||
5.346% due 04/25/2037 ~ |
107 |
43 |
||||||||||
5.644% due 02/25/2037 ~ |
25 |
21 |
||||||||||
Structured Adjustable Rate Mortgage Loan Trust |
||||||||||||
4.199% due 01/25/2036 ~ |
355 |
186 |
||||||||||
4.997% due 11/25/2036 ~ |
265 |
202 |
||||||||||
Verus Securitization Trust |
||||||||||||
0.000% due 10/25/2066 ~(a) |
5,145 |
508 |
||||||||||
0.000% due 02/25/2067 ~(a) |
11,283 |
17 |
||||||||||
0.180% due 02/25/2067 ~(a) |
11,283 |
97 |
||||||||||
0.430% due 10/25/2066 ~(a) |
5,145 |
110 |
||||||||||
4.248% due 02/25/2067 ~ |
392 |
261 |
||||||||||
4.414% due 10/25/2066 ~ |
194 |
127 |
||||||||||
7.793% due 06/25/2069 ~ |
500 |
503 |
||||||||||
WaMu Mortgage Pass-Through Certificates Trust |
||||||||||||
3.236% due 10/25/2036 ~ |
106 |
94 |
||||||||||
3.761% due 12/25/2046 • |
106 |
97 |
||||||||||
3.994% due 02/25/2037 ~ |
98 |
85 |
||||||||||
4.403% due 01/25/2045 • |
94 |
92 |
||||||||||
4.663% due 10/25/2045 • |
1,449 |
1,288 |
||||||||||
Wells Fargo Commercial Mortgage Trust |
||||||||||||
3.874% due 06/15/2036 ~ |
400 |
346 |
||||||||||
Wells Fargo Mortgage-Backed Securities Trust |
||||||||||||
6.000% due 06/25/2037 |
9 |
9 |
||||||||||
Worldwide Plaza Trust |
||||||||||||
3.526% due 11/10/2036 |
2,350 |
1,938 |
||||||||||
WSTN Trust |
||||||||||||
7.958% due 07/05/2037 ~ |
800 |
807 |
||||||||||
8.748% due 07/05/2037 ~ |
800 |
801 |
||||||||||
10.174% due 07/05/2037 ~ |
600 |
602 |
||||||||||
Total Non-Agency Mortgage-Backed Securities (Cost $45,546) |
39,846 |
|||||||||||
ASSET-BACKED SECURITIES 8.0% |
||||||||||||
AUTOMOBILE SEQUENTIAL 1.3% |
||||||||||||
CPS Auto Securitization Trust |
||||||||||||
11.000% due 06/16/2032 « |
4,832 |
4,856 |
||||||||||
HOME EQUITY OTHER 1.9% |
||||||||||||
Argent Securities Trust |
||||||||||||
4.143% due 03/25/2036 • |
5,412 |
3,058 |
||||||||||
Asset-Backed Securities Corp. Home Equity Loan Trust |
||||||||||||
2.867% due 03/25/2036 • |
178 |
176 |
||||||||||
Citigroup Mortgage Loan Trust, Inc. |
||||||||||||
4.063% due 12/25/2036 • |
2,369 |
869 |
||||||||||
Merrill Lynch Mortgage Investors Trust |
||||||||||||
4.083% due 04/25/2037 • |
150 |
60 |
||||||||||
Morgan Stanley Mortgage Loan Trust |
||||||||||||
6.250% due 02/25/2037 ~ |
171 |
97 |
||||||||||
Ownit Mortgage Loan Trust |
||||||||||||
4.258% due 03/25/2037 • |
2,312 |
2,481 |
||||||||||
People’s Choice Home Loan Securities Trust |
||||||||||||
4.648% due 06/25/2034 • |
309 |
296 |
||||||||||
Renaissance Home Equity Loan Trust |
||||||||||||
7.238% due 09/25/2037 þ |
999 |
374 |
||||||||||
7,411 |
||||||||||||
HOME EQUITY SEQUENTIAL 0.2% |
||||||||||||
Morgan Stanley Mortgage Loan Trust |
||||||||||||
4.003% due 04/25/2037 • |
2,301 |
606 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
WHOLE LOAN COLLATERAL 0.9% |
||||||||||||
Bear Stearns Asset-Backed Securities Trust |
||||||||||||
6.500% due 10/25/2036 |
$ |
214 |
$ |
67 |
||||||||
First Franklin Mortgage Loan Trust |
||||||||||||
4.633% due 06/25/2036 • |
1,475 |
1,454 |
||||||||||
Residential Asset Mortgage Products Trust |
||||||||||||
4.323% due 09/25/2036 • |
70 |
67 |
||||||||||
Securitized Asset-Backed Receivables LLC Trust |
||||||||||||
4.043% due 05/25/2036 • |
3,405 |
1,822 |
||||||||||
3,410 |
||||||||||||
OTHER ABS 3.7% |
||||||||||||
ABSLT DE LLC |
||||||||||||
12.103% due 05/20/2033 « |
5,300 |
5,296 |
||||||||||
Adagio VI CLO DAC |
||||||||||||
0.000% due 04/30/2031 «~ |
EUR |
1,306 |
0 |
|||||||||
Apidos CLO XXVIII |
||||||||||||
0.000% due 10/20/2038 ~ |
$ |
2,534 |
659 |
|||||||||
Avoca CLO XX DAC |
||||||||||||
0.000% due 07/15/2032 ~ |
EUR |
1,070 |
684 |
|||||||||
Belle Haven ABS CDO Ltd. |
||||||||||||
7.000% due 07/05/2046 • |
$ |
85,896 |
179 |
|||||||||
CIFC Funding Ltd. |
||||||||||||
0.000% due 04/24/2030 ~ |
1,200 |
119 |
||||||||||
0.000% due 03/31/2038 ~ |
814 |
368 |
||||||||||
College Avenue Student Loans Trust |
||||||||||||
0.000% due 06/25/2054 «(f) |
5 |
2,794 |
||||||||||
6.610% due 06/25/2054 |
626 |
642 |
||||||||||
8.660% due 06/25/2054 |
902 |
943 |
||||||||||
Deutsche Bank AG |
||||||||||||
10.883% due 01/21/2035 «• |
500 |
504 |
||||||||||
Dryden 58 CLO Ltd. |
||||||||||||
0.000% due 07/17/2031 ~ |
5,689 |
43 |
||||||||||
Marlette Funding Trust |
||||||||||||
0.000% due 07/16/2029 «(f) |
6 |
0 |
||||||||||
0.000% due 03/15/2030 «(f) |
3 |
0 |
||||||||||
SLM Student Loan EDC Repackaging Trust |
||||||||||||
0.000% due 10/28/2029 «(f) |
1 |
380 |
||||||||||
SLM Student Loan Trust |
||||||||||||
0.000% due 01/25/2042 «(f) |
2 |
365 |
||||||||||
Taberna Preferred Funding V Ltd. |
||||||||||||
4.300% due 08/05/2036 • |
1,414 |
1,337 |
||||||||||
14,313 |
||||||||||||
Total Asset-Backed Securities (Cost $51,147) |
30,596 |
|||||||||||
SOVEREIGN ISSUES 2.6% |
||||||||||||
Argentina Bonar Bonds |
||||||||||||
0.750% due 07/09/2030 þ |
1,735 |
1,078 |
||||||||||
Argentina Republic Government International Bonds |
||||||||||||
1.000% due 07/09/2029 |
256 |
234 |
||||||||||
4.125% due 07/09/2046 þ |
107 |
82 |
||||||||||
5.000% due 01/09/2038 þ |
6,188 |
5,179 |
||||||||||
Costa Rica Government International Bonds |
||||||||||||
5.950% due 04/27/2033 |
EUR |
100 |
122 |
|||||||||
Development Bank of Kazakhstan JSC |
||||||||||||
18.400% due 10/16/2028 |
KZT |
100,000 |
218 |
|||||||||
Dominican Republic International Bonds |
||||||||||||
10.750% due 06/01/2036 |
DOP |
21,000 |
380 |
|||||||||
Ghana Government International Bonds |
||||||||||||
0.000% due 07/03/2026 (f) |
$ |
7 |
7 |
|||||||||
0.000% due 01/03/2030 (f) |
39 |
35 |
||||||||||
5.000% due 07/03/2029 þ |
191 |
189 |
||||||||||
5.000% due 07/03/2035 þ |
313 |
291 |
||||||||||
Peru Government International Bonds |
||||||||||||
6.900% due 08/12/2037 |
PEN |
900 |
270 |
|||||||||
6.950% due 08/12/2031 |
161 |
54 |
||||||||||
Romania Government International Bonds |
||||||||||||
5.375% due 03/22/2031 |
EUR |
190 |
225 |
|||||||||
5.500% due 09/18/2028 |
500 |
594 |
||||||||||
6.375% due 09/18/2033 |
500 |
609 |
||||||||||
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 81 |
Schedule of Investments |
PIMCO Income Strategy Fund |
(Cont.) |
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
Turkiye Government Bonds |
||||||||||||
40.760% (BISTREFI + 0.000%) due 05/17/2028 ~ |
TRY |
13,466 |
$ |
291 |
||||||||
Venezuela Government International Bonds |
||||||||||||
9.250% due 09/15/2027 ^(c) |
$ |
151 |
74 |
|||||||||
Total Sovereign Issues (Cost $8,182) |
9,932 |
|||||||||||
SHARES |
||||||||||||
COMMON STOCKS 5.6% |
||||||||||||
COMMUNICATION SERVICES 0.9% |
||||||||||||
Clear Channel Outdoor Holdings, Inc. (d) |
261,329 |
632 |
||||||||||
iHeartMedia, Inc. Class A (d) |
54,906 |
236 |
||||||||||
iHeartMedia, Inc. Class B «(d) |
48,387 |
178 |
||||||||||
Promotora de Informaciones SA Class A (d) |
130,203 |
46 |
||||||||||
SES SA «(d) |
113,713 |
1,720 |
||||||||||
Uniti Group, Inc. (d) |
59,579 |
683 |
||||||||||
3,495 |
||||||||||||
CONSUMER DISCRETIONARY 0.0% |
||||||||||||
Steinhoff International Holdings NV «(d)(i) |
12,793,342 |
0 |
||||||||||
West Marine «(d)(i) |
1,500 |
10 |
||||||||||
10 |
||||||||||||
FINANCIALS 2.7% |
||||||||||||
Banca Monte dei Paschi di Siena SpA |
523,500 |
6,506 |
||||||||||
Windstream Servcies LLC (d) |
326,125 |
3,740 |
||||||||||
XBP Global Holdings, Inc. (d) |
325 |
1 |
||||||||||
10,247 |
||||||||||||
INDUSTRIALS 1.9% |
||||||||||||
Drillco Holdings Luxembourg SA «(i) |
26,444 |
606 |
||||||||||
Foresea Holdings SA « |
10,980 |
251 |
||||||||||
Incora Intermediate II LLC «(d)(i) |
155,272 |
6,120 |
||||||||||
Westmoreland Mining Holdings «(d)(i) |
25,226 |
17 |
||||||||||
Westmoreland Mining LLC «(d)(i) |
80,305 |
211 |
||||||||||
7,205 |
||||||||||||
SHARES |
MARKET VALUE (000S) |
|||||||||||
INFORMATION TECHNOLOGY 0.1% |
||||||||||||
NVIDIA Corp. |
1,907 |
$ |
382 |
|||||||||
REAL ESTATE 0.0% |
||||||||||||
MNSN Holdings, Inc. (d)(i) |
1,675 |
141 |
||||||||||
Total Common Stocks (Cost $16,665) |
21,480 |
|||||||||||
WARRANTS 0.2% |
||||||||||||
COMMUNICATION SERVICES 0.2% |
||||||||||||
Windstream Holdings II LLC - Exp. 08/01/2035 « |
63,531 |
728 |
||||||||||
CONSUMER DISCRETIONARY 0.0% |
||||||||||||
West Marine - Exp. 09/08/2028 « |
195 |
0 |
||||||||||
Total Warrants (Cost $387) |
728 |
|||||||||||
PREFERRED SECURITIES 2.5% |
||||||||||||
BANKING & FINANCE 1.6% |
||||||||||||
ADLER Group SA « |
675,204 |
0 |
||||||||||
Brighthouse Holdings LLC |
||||||||||||
6.500% due 07/27/2037 þ(g) |
35,000 |
30 |
||||||||||
Cooperatieve Rabobank UA |
||||||||||||
6.500% due 12/31/2099 þ(g) |
1,246,400 |
1,609 |
||||||||||
WAFC Voussoir « |
2,334,984 |
2,335 |
||||||||||
Windstream Holdings II LLC |
||||||||||||
11.000% « |
2,081 |
2,319 |
||||||||||
6,293 |
||||||||||||
INDUSTRIALS 0.9% |
||||||||||||
Clover Holdings, Inc. |
||||||||||||
0.000% «(i) |
7,609 |
146 |
||||||||||
SVB Financial Trust |
||||||||||||
0.000% due 11/07/2032 (f) |
13,600 |
1 |
||||||||||
11.000% due 11/07/2032 |
1,910 |
879 |
||||||||||
Syniverse Holdings, Inc. |
||||||||||||
12.500% «(i) |
1,665,965 |
1,214 |
||||||||||
Venture Global LNG, Inc. |
||||||||||||
9.000% due 09/30/2029 (g) |
1,070,000 |
1,043 |
||||||||||
3,283 |
||||||||||||
Total Preferred Securities (Cost $9,798) |
9,576 |
|||||||||||
SHARES |
MARKET VALUE (000S) |
|||||||||||
REAL ESTATE INVESTMENT TRUSTS 0.3% |
||||||||||||
REAL ESTATE 0.3% |
||||||||||||
VICI Properties, Inc. |
45,844 |
$ |
1,217 |
|||||||||
Total Real Estate Investment Trusts (Cost $308) |
1,217 |
|||||||||||
SHORT-TERM INSTRUMENTS 0.2% |
||||||||||||
MUTUAL FUNDS 0.1% |
||||||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class 3.690% (h) |
375,245 |
375 |
||||||||||
PRINCIPAL AMOUNT (000S) |
||||||||||||
U.S. TREASURY BILLS 0.1% |
||||||||||||
3.673% due 07/21/2026 (e)(f)(n) |
$ |
448 |
447 |
|||||||||
Total Short-Term Instruments (Cost $822) |
822 |
|||||||||||
Total Investments in Securities (Cost $378,897) |
335,568 |
|||||||||||
SHARES |
||||||||||||
INVESTMENTS IN AFFILIATES 10.5% |
||||||||||||
SHORT-TERM INSTRUMENTS 10.5% |
||||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 10.5% |
||||||||||||
PIMCO Short-Term Floating NAV Portfolio III |
4,126,346 |
40,195 |
||||||||||
Total Short-Term Instruments (Cost $40,170) |
40,195 |
|||||||||||
Total Investments in Affiliates (Cost $40,170) |
40,195 |
|||||||||||
Total Investments 98.5% (Cost $419,067) |
$ |
375,763 |
||||||||||
Financial Derivative Instruments (k)(l) (0.1)% (Cost or Premiums, net $(3,979)) |
(339 |
) | ||||||||||
Other Assets and Liabilities, net 1.6% |
6,088 |
|||||||||||
Net Assets Applicable to Common Shareholders 100.0% |
$ |
381,512 |
||||||||||
NOTES TO SCHEDULE OF INVESTMENTS:
* |
A zero balance may reflect actual amounts rounding to less than one thousand. |
^ |
Security is in default. |
« |
Security valued using significant unobservable inputs (Level 3). |
µ |
All or a portion of this amount represents unfunded loan commitments. The interest rate for the unfunded portion will be determined at the time of funding. See Note 4, Securities and Other Investments, in the Notes to Financial Statements for more information regarding unfunded loan commitments. |
~ |
Variable or Floating rate security. Rate shown is the rate in effect as of period end. Certain variable rate securities are not based on a published reference rate and spread, rather are determined by the issuer or agent and are based on current market conditions. Reference rate is as of reset date, which may vary by security. These securities may not indicate a reference rate and/or spread in their description. |
• |
Rate shown is the rate in effect as of period end. The rate may be based on a fixed rate, a capped rate or a floor rate and may convert to a variable or floating rate in the future. These securities do not indicate a reference rate and spread in their description. |
þ |
Coupon represents a rate which changes periodically based on a predetermined schedule or event. Rate shown is the rate in effect as of period end. |
(a) |
Security is an Interest Only (“IO”) or IO Strip. |
(b) |
Payment in-kind security. |
(c) |
Security is not accruing income as of the date of this report. |
(d) |
Security did not produce income within the last twelve months. |
(e) |
Coupon represents a weighted average yield to maturity. |
82 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
(f) |
Zero coupon security. |
(g) |
Perpetual maturity; date shown, if applicable, represents next contractual call date. |
(h) |
Coupon represents a 7-Day Yield. |
(i) RESTRICTED SECURITIES:
Issuer Description |
Acquisition Date |
Cost |
Market Value |
Market Value as Percentage of Net Assets |
||||||||||||||||||||
Clover Holdings, Inc. |
12/09/2024 |
$ |
114 |
$ |
146 |
0.04 |
% | |||||||||||||||||
Drillco Holdings Luxembourg SA |
06/08/2023 |
529 |
606 |
0.16 |
||||||||||||||||||||
Incora Intermediate II LLC |
01/31/2025 |
7,542 |
6,120 |
1.60 |
||||||||||||||||||||
Incora Top Holdco LLC 6.000% due 01/30/2033 |
01/31/2025 - 05/01/2026 |
3,589 |
5,657 |
1.48 |
||||||||||||||||||||
MNSN Holdings, Inc. |
03/16/2023 - 03/29/2023 |
19 |
141 |
0.04 |
||||||||||||||||||||
Steinhoff International Holdings NV |
06/30/2023 - 10/30/2023 |
0 |
0 |
0.00 |
||||||||||||||||||||
Syniverse Holdings, Inc. |
05/12/2022 - 05/31/2026 |
1,645 |
1,214 |
0.32 |
||||||||||||||||||||
West Marine |
09/12/2023 |
22 |
9 |
0.00 |
||||||||||||||||||||
Westmoreland Mining Holdings |
12/08/2014 - 10/19/2016 |
727 |
17 |
0.00 |
||||||||||||||||||||
Westmoreland Mining LLC |
06/30/2023 - 05/14/2026 |
299 |
211 |
0.06 |
||||||||||||||||||||
$ |
14,486 |
$ |
14,121 |
3.70 |
% | |||||||||||||||||||
BORROWINGS AND OTHER FINANCING TRANSACTIONS
REVERSE REPURCHASE AGREEMENTS:
Counterparty |
Borrowing Rate (1) |
Settlement Date |
Maturity Date |
Amount Borrowed (1) |
Payable for Reverse Repurchase Agreements |
|||||||||||||||||
BPS |
(0.250 |
)% |
06/17/2026 |
TBD |
(2) |
EUR |
(176 |
) |
$ |
(201 |
) | |||||||||||
BRC |
1.750 |
06/17/2026 |
TBD |
(2) |
(264 |
) |
(302 |
) | ||||||||||||||
3.580 |
12/12/2025 |
TBD |
(2) |
$ |
(1,474 |
) |
(1,503 |
) | ||||||||||||||
MSC |
3.250 |
06/22/2026 |
07/31/2026 |
(77 |
) |
(78 |
) | |||||||||||||||
UBS |
4.230 |
06/10/2026 |
07/16/2026 |
(1,250 |
) |
(1,253 |
) | |||||||||||||||
Total Reverse Repurchase Agreements |
$ |
(3,337) |
||||||||||||||||||||
BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY
The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of June 30, 2026:
Counterparty |
Repurchase Agreement Proceeds to be Received |
Payable for Reverse Repurchase Agreements |
Payable for Sale-Buyback Transactions |
Total Borrowings and Other Financing Transactions |
Collateral Pledged/ (Received) |
Net Exposure (3) |
||||||||||||||||||
Global/Master Repurchase Agreement |
||||||||||||||||||||||||
BPS |
$ |
0 |
$ |
(201 |
) |
$ |
0 |
$ |
(201 |
) |
$ |
202 |
$ |
1 |
||||||||||
BRC |
0 |
(1,805 |
) |
0 |
(1,805 |
) |
1,845 |
40 |
||||||||||||||||
MSC |
0 |
(78 |
) |
0 |
(78 |
) |
101 |
23 |
||||||||||||||||
SOG |
0 |
0 |
0 |
0 |
1,550 |
1,550 |
||||||||||||||||||
UBS |
0 |
(1,253 |
) |
0 |
(1,253 |
) |
0 |
(1,253 |
) | |||||||||||||||
Total Borrowings and Other Financing Transactions |
$ |
0 |
$ |
(3,337 |
) |
$ |
0 |
|||||||||||||||||
CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS
Remaining Contractual Maturity of the Agreements
Overnight and Continuous |
Up to 30 days |
31-90 days |
Greater Than 90 days |
Total |
||||||||||||||||
Reverse Repurchase Agreements |
||||||||||||||||||||
Corporate Bonds & Notes |
$ |
0 |
$ |
(1,253 |
) |
$ |
(78 |
) |
$ |
(2,006 |
) |
$ |
(3,337 |
) | ||||||
Total Borrowings |
$ |
0 |
$ |
(1,253 |
) |
$ |
(78 |
) |
$ |
(2,006 |
) |
$ |
(3,337 |
) | ||||||
Payable for reverse repurchase agreements |
$ |
(3,337 |
) | |||||||||||||||||
(j) |
Securities with an aggregate market value of $3,699 have been pledged as collateral under the terms of the above master agreements as of June 30, 2026. |
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 83 |
Schedule of Investments |
PIMCO Income Strategy Fund |
(Cont.) |
(1) |
The average amount of borrowings outstanding during the period ended June 30, 2026 was $(31,447) at a weighted average interest rate of 4.094%. Average borrowings may include reverse repurchase agreements and sale-buyback transactions, if held during the period. |
(2) |
Open maturity reverse repurchase agreement. |
(3) |
Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information. |
(k) FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED
FUTURES CONTRACTS:
SHORT FUTURES CONTRACTS
Description |
Expiration Month |
# of Contracts |
Notional Amount |
Unrealized Appreciation/ (Depreciation) |
Variation Margin |
|||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||
CBOT U.S. Long Bond Futures |
09/2026 |
20 |
$ |
(2,270 |
) |
$ |
(63 |
) |
$ |
13 |
$ |
0 |
||||||||||||
Ultra 10 Year U.S. Treasury Notes Futures |
09/2026 |
32 |
(3,599 |
) |
(74 |
) |
13 |
0 |
||||||||||||||||
Total Futures Contracts |
$ |
(137 |
) |
$ |
26 |
$ |
0 |
|||||||||||||||||
SWAP AGREEMENTS:
CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION
(1)
Reference Entity |
Fixed Receive Rate |
Payment Frequency |
Maturity Date |
Implied Credit Spread at June 30, 2026 (2) |
Notional Amount (3) |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Market Value (4) |
Variation Margin |
|||||||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||||||
Jaguar Land Rover Automotive |
5.000 |
% |
Quarterly |
12/20/2026 |
0.607 |
% |
EUR 1,986 |
$ |
76 |
$ |
(26 |
) |
$ |
50 |
$ |
0 |
$ |
0 |
||||||||||||||||||||||
CREDIT DEFAULT SWAPS ON CREDIT INDEXES - SELL PROTECTION
(1)
Index/Tranches |
Fixed Receive Rate |
Payment Frequency |
Maturity Date |
Notional Amount (3) |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Market Value (4) |
Variation Margin |
||||||||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||||||
CDX.HY-45 5-Year Index |
5.000 |
% |
Quarterly |
12/20/2030 |
$ |
2,744 |
$ |
214 |
$ |
13 |
$ |
227 |
$ |
0 |
$ |
(1 |
) | |||||||||||||||||||||||
CDX.HY-46 5-Year Index |
5.000 |
Quarterly |
06/20/2031 |
7,524 |
460 |
157 |
617 |
0 |
(4 |
) | ||||||||||||||||||||||||||||||
$ |
674 |
$ |
170 |
$ |
844 |
$ |
0 |
$ |
(5 |
) | ||||||||||||||||||||||||||||||
INTEREST RATE SWAPS
Pay/Receive Floating Rate |
Floating Rate Index |
Fixed Rate |
Payment Frequency |
Maturity Date |
Notional Amount |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Market Value |
Variation Margin |
|||||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||||
Pay |
1-Day GBP-SONIO Compounded-OIS |
3.500 |
% |
Annual |
03/18/2031 |
GBP |
15,360 |
$ |
(67 |
) |
$ |
(434 |
) |
$ |
(501 |
) |
$ |
0 |
$ |
(21 |
) | |||||||||||||||||
Receive |
1-Day GBP-SONIO Compounded-OIS |
0.750 |
Annual |
09/21/2032 |
7,300 |
709 |
1,293 |
2,002 |
13 |
0 |
||||||||||||||||||||||||||||
Receive |
1-Day GBP-SONIO Compounded-OIS |
2.000 |
Annual |
03/15/2033 |
3,700 |
412 |
223 |
635 |
7 |
0 |
||||||||||||||||||||||||||||
Receive |
1-Day GBP-SONIO Compounded-OIS |
0.750 |
Annual |
09/21/2052 |
300 |
(1 |
) |
251 |
250 |
1 |
0 |
|||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.350 |
Semi-Annual |
01/20/2027 |
$ |
4,900 |
(1 |
) |
86 |
85 |
1 |
0 |
||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
1.550 |
Semi-Annual |
01/20/2027 |
21,600 |
(51 |
) |
(281 |
) |
(332 |
) |
0 |
(4 |
) | ||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.360 |
Semi-Annual |
02/15/2027 |
2,730 |
(1 |
) |
50 |
49 |
1 |
0 |
|||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
1.600 |
Semi-Annual |
02/15/2027 |
10,900 |
(27 |
) |
(141 |
) |
(168 |
) |
0 |
(2 |
) | ||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.450 |
Semi-Annual |
02/17/2027 |
4,500 |
(1 |
) |
76 |
75 |
1 |
0 |
|||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
1.700 |
Semi-Annual |
02/17/2027 |
18,000 |
(48 |
) |
(207 |
) |
(255 |
) |
0 |
(4 |
) | ||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
2.500 |
Semi-Annual |
12/20/2027 |
28,100 |
106 |
(839 |
) |
(733 |
) |
0 |
(17 |
) | |||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.420 |
Semi-Annual |
08/17/2028 |
15,100 |
(3 |
) |
869 |
866 |
15 |
0 |
|||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.380 |
Semi-Annual |
08/24/2028 |
16,100 |
(4 |
) |
941 |
937 |
16 |
0 |
|||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.000 |
Semi-Annual |
06/19/2029 |
49,900 |
1,404 |
(3,126 |
) |
(1,722 |
) |
0 |
(73 |
) | |||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
3.750 |
Annual |
06/20/2029 |
14,500 |
(274 |
) |
354 |
80 |
21 |
0 |
|||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
2.000 |
Annual |
12/21/2029 |
61,800 |
(6,367 |
) |
1,958 |
(4,409 |
) |
0 |
(109 |
) | |||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.250 |
Annual |
06/18/2030 |
53,900 |
(504 |
) |
(814 |
) |
(1,318 |
) |
0 |
(107 |
) | ||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.750 |
Annual |
09/17/2030 |
39,700 |
956 |
(1,236 |
) |
(280 |
) |
0 |
(86 |
) | |||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.160 |
Semi-Annual |
04/12/2031 |
1,400 |
0 |
192 |
192 |
3 |
0 |
||||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
1.380 |
Semi-Annual |
04/12/2031 |
7,000 |
(14 |
) |
(877 |
) |
(891 |
) |
0 |
(17 |
) | ||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
0.750 |
Semi-Annual |
06/16/2031 |
36,300 |
2,460 |
3,168 |
5,628 |
93 |
0 |
||||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.250 |
Annual |
06/17/2031 |
42,000 |
(696 |
) |
(562 |
) |
(1,258 |
) |
0 |
(111 |
) | ||||||||||||||||||||||||
Pay (5) |
1-Day USD-SOFR Compounded-OIS |
3.250 |
Annual |
09/16/2031 |
43,400 |
(1,241 |
) |
(66 |
) |
(1,307 |
) |
0 |
(121 |
) | ||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.750 |
Semi-Annual |
12/15/2031 |
20,100 |
(281 |
) |
2,694 |
2,413 |
57 |
0 |
|||||||||||||||||||||||||||
84 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
Pay/Receive Floating Rate |
Floating Rate Index |
Fixed Rate |
Payment Frequency |
Maturity Date |
Notional Amount |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Market Value |
Variation Margin |
|||||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
2.000 |
% |
Annual |
12/21/2032 |
$ |
12,500 |
$ |
(1,710 |
) |
$ |
221 |
$ |
(1,489 |
) |
$ |
0 |
$ |
(43 |
) | ||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.500 |
Annual |
12/20/2033 |
19,000 |
172 |
(749 |
) |
(577 |
) |
0 |
(76 |
) | |||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
3.250 |
Annual |
03/19/2035 |
9,300 |
782 |
(264 |
) |
518 |
41 |
0 |
|||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
4.500 |
Annual |
06/19/2044 |
75,300 |
(212 |
) |
3,025 |
2,813 |
0 |
(397 |
) | ||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
2.000 |
Semi-Annual |
01/15/2050 |
3,200 |
(22 |
) |
1,224 |
1,202 |
23 |
0 |
|||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.750 |
Semi-Annual |
01/22/2050 |
8,400 |
(21 |
) |
3,497 |
3,476 |
58 |
0 |
|||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.875 |
Semi-Annual |
02/07/2050 |
8,800 |
(34 |
) |
3,504 |
3,470 |
62 |
0 |
|||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
2.250 |
Semi-Annual |
03/12/2050 |
1,700 |
(5 |
) |
576 |
571 |
12 |
0 |
|||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.150 |
Semi-Annual |
12/11/2050 |
91,100 |
18 |
46,660 |
46,678 |
365 |
0 |
||||||||||||||||||||||||||||
Receive |
6-Month EUR-EURIBOR |
0.150 |
Annual |
03/18/2030 |
EUR |
3,400 |
62 |
355 |
417 |
3 |
0 |
|||||||||||||||||||||||||||
Receive |
6-Month EUR-EURIBOR |
0.250 |
Annual |
09/21/2032 |
3,600 |
326 |
282 |
608 |
4 |
0 |
||||||||||||||||||||||||||||
Receive (5) |
6-Month EUR-EURIBOR |
0.830 |
Annual |
12/09/2052 |
9,900 |
139 |
1,204 |
1,343 |
0 |
(2 |
) | |||||||||||||||||||||||||||
$ |
(4,039 |
) |
$ |
63,107 |
$ |
59,068 |
$ |
797 |
$ |
(1,190 |
) | |||||||||||||||||||||||||||
Total Swap Agreements |
$ |
(3,289 |
) |
$ |
63,251 |
$ |
59,962 |
$ |
797 |
$ |
(1,195 |
) | ||||||||||||||||||||||||||
FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY
The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of June 30, 2026:
Financial Derivative Assets |
Financial Derivative Liabilities |
|||||||||||||||||||||||||||||||||||
Market Value |
Variation Margin Asset |
Total |
Market Value |
Variation Margin Liability |
Total |
|||||||||||||||||||||||||||||||
Purchased Options |
Futures |
Swap Agreements |
Written Options |
Futures |
Swap Agreements |
|||||||||||||||||||||||||||||||
Total Exchange-Traded or Centrally Cleared |
$ |
0 |
$ |
26 |
$ |
797 |
$ |
823 |
$ |
0 |
$ |
0 |
$ |
(1,195) |
$ |
(1,195) |
||||||||||||||||||||
Cash of $9,881 has been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of June 30, 2026. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information.
(1) |
If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
(2) |
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
(3) |
The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
(4) |
The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the underlying referenced instrument’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
(5) |
This instrument has a forward starting effective date. See Note 2, Securities Transactions and Investment Income, in the Notes to Financial Statements for further information. |
(l) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
FORWARD FOREIGN CURRENCY CONTRACTS:
Counterparty |
Settlement Month |
Currency to be Delivered |
Currency to be Received |
Unrealized Appreciation/ (Depreciation) |
||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||
BOA |
07/2026 |
DOP |
4,001 |
$ |
68 |
$ |
1 |
$ |
0 |
|||||||||||||||
08/2026 |
1,778 |
30 |
0 |
0 |
||||||||||||||||||||
08/2026 |
HKD |
1,581 |
202 |
0 |
0 |
|||||||||||||||||||
BRC |
07/2026 |
TRY |
3,625 |
76 |
0 |
(1 |
) | |||||||||||||||||
07/2026 |
$ |
655 |
TRY |
31,169 |
4 |
0 |
||||||||||||||||||
BSH |
09/2026 |
540 |
BRL |
2,769 |
0 |
(11 |
) | |||||||||||||||||
CBK |
09/2026 |
1 |
PEN |
3 |
0 |
0 |
||||||||||||||||||
12/2026 |
PEN |
1,127 |
$ |
322 |
0 |
(5 |
) | |||||||||||||||||
FAR |
07/2026 |
GBP |
2,259 |
3,038 |
41 |
0 |
||||||||||||||||||
GLM |
07/2026 |
BRL |
2,260 |
437 |
0 |
(1 |
) | |||||||||||||||||
07/2026 |
CAD |
698 |
491 |
0 |
(2 |
) | ||||||||||||||||||
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 85 |
Schedule of Investments |
PIMCO Income Strategy Fund |
(Cont.) |
Counterparty |
Settlement Month |
Currency to be Delivered |
Currency to be Received |
Unrealized Appreciation/ (Depreciation) |
||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||
07/2026 |
DOP |
8,241 |
$ |
136 |
$ |
0 |
$ |
(2 |
) | |||||||||||||||
07/2026 |
$ |
448 |
BRL |
2,260 |
0 |
(10 |
) | |||||||||||||||||
08/2026 |
DOP |
10,634 |
$ |
178 |
1 |
0 |
||||||||||||||||||
08/2026 |
$ |
491 |
CAD |
697 |
2 |
0 |
||||||||||||||||||
09/2026 |
DOP |
17,552 |
$ |
293 |
3 |
(1 |
) | |||||||||||||||||
10/2026 |
596 |
10 |
0 |
0 |
||||||||||||||||||||
11/2026 |
$ |
631 |
DOP |
38,369 |
1 |
0 |
||||||||||||||||||
12/2026 |
DOP |
3,704 |
$ |
62 |
1 |
0 |
||||||||||||||||||
JPM |
07/2026 |
BRL |
2,265 |
440 |
1 |
0 |
||||||||||||||||||
07/2026 |
$ |
438 |
BRL |
2,265 |
1 |
0 |
||||||||||||||||||
07/2026 |
2,943 |
EUR |
2,544 |
0 |
(36 |
) | ||||||||||||||||||
08/2026 |
HKD |
5,873 |
$ |
751 |
1 |
0 |
||||||||||||||||||
09/2026 |
$ |
185 |
MXN |
3,223 |
0 |
(2 |
) | |||||||||||||||||
10/2026 |
440 |
BRL |
2,315 |
0 |
(2 |
) | ||||||||||||||||||
MBC |
07/2026 |
EUR |
1,362 |
$ |
1,575 |
19 |
0 |
|||||||||||||||||
NGF |
07/2026 |
$ |
105 |
TRY |
4,955 |
1 |
0 |
|||||||||||||||||
SCX |
08/2026 |
HKD |
5,542 |
$ |
709 |
1 |
0 |
|||||||||||||||||
SOG |
07/2026 |
EUR |
18,818 |
21,952 |
451 |
0 |
||||||||||||||||||
07/2026 |
$ |
20,061 |
EUR |
17,636 |
90 |
0 |
||||||||||||||||||
08/2026 |
EUR |
17,636 |
$ |
20,088 |
0 |
(90 |
) | |||||||||||||||||
SSB |
07/2026 |
CAD |
6 |
4 |
0 |
0 |
||||||||||||||||||
07/2026 |
$ |
520 |
CAD |
718 |
0 |
(15 |
) | |||||||||||||||||
07/2026 |
2,986 |
GBP |
2,259 |
10 |
0 |
|||||||||||||||||||
08/2026 |
GBP |
2,259 |
$ |
2,986 |
0 |
(10 |
) | |||||||||||||||||
08/2026 |
$ |
5 |
CAD |
6 |
0 |
0 |
||||||||||||||||||
Total Forward Foreign Currency Contracts |
$ |
629 |
$ |
(188 |
) | |||||||||||||||||||
SWAP AGREEMENTS:
CREDIT DEFAULT SWAPS ON CORPORATE AND SOVEREIGN ISSUES - SELL PROTECTION
(1)
Counterparty |
Reference Entity |
Fixed Receive Rate |
Payment Frequency |
Maturity Date |
Implied Credit Spread at June 30, 2026 (2) |
Notional Amount (3) |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Swap Agreements, at Value (4) |
|||||||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||||||
CBK |
Colombia Government International Bonds |
1.000 |
% |
Quarterly |
06/20/2036 |
2.387 |
% |
$ |
800 |
$ |
(110 |
) |
$ |
27 |
$ |
0 |
$ |
(83 |
) | |||||||||||||||||||||
DUB |
Eskom « |
4.650 |
Quarterly |
06/30/2029 |
— |
¨ |
1,375 |
0 |
70 |
70 |
0 |
|||||||||||||||||||||||||||||
MYC |
Colombia Government International Bonds |
1.000 |
Quarterly |
06/20/2036 |
2.387 |
3,650 |
(502 |
) |
126 |
0 |
(376 |
) | ||||||||||||||||||||||||||||
Petroleos Mexicanos |
1.000 |
Quarterly |
12/20/2028 |
1.573 |
400 |
(78 |
) |
73 |
0 |
(5 |
) | |||||||||||||||||||||||||||||
$ |
(690 |
) |
$ |
296 |
$ |
70 |
$ |
(464 |
) | |||||||||||||||||||||||||||||||
TOTAL RETURN SWAPS ON SECURITIES
Counterparty |
Pay/Receive (5) |
Underlying Reference |
# of Shares |
Financing Rate |
Payment Frequency |
Maturity Date |
Notional Amount |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Swap Agreements, at Value |
||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||
FAR |
Pay |
NVIDIA Corp. |
1,907 |
5.660% (SOFR plus a specified spread) |
Maturity |
07/29/2026 |
$ |
367 |
$ |
0 |
$ |
(14 |
) |
$ |
0 |
$ |
(14 |
) | ||||||||||||||||||
Total Swap Agreements |
$ |
(690 |
) |
$ |
282 |
$ |
70 |
$ |
(478 |
) | ||||||||||||||||||||||||||
86 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged/(received) as of June 30, 2026:
Financial Derivative Assets |
Financial Derivative Liabilities |
|||||||||||||||||||||||||||||||||||||||||||||||
Counterparty |
Forward Foreign Currency Contracts |
Purchased Options |
Swap Agreements |
Total Over the Counter |
Forward Foreign Currency Contracts |
Written Options |
Swap Agreements |
Total Over the Counter |
Net Market Value of OTC Derivatives |
Collateral Pledged/ (Received) |
Net Exposure (6) |
|||||||||||||||||||||||||||||||||||||
BOA |
$ |
1 |
$ |
0 |
$ |
0 |
$ |
1 |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
1 |
$ |
0 |
$ |
1 |
||||||||||||||||||||||||||
BRC |
4 |
0 |
0 |
4 |
(1 |
) |
0 |
0 |
(1 |
) |
3 |
0 |
3 |
|||||||||||||||||||||||||||||||||||
BSH |
0 |
0 |
0 |
0 |
(11 |
) |
0 |
0 |
(11 |
) |
(11 |
) |
(10 |
) |
(21 |
) | ||||||||||||||||||||||||||||||||
CBK |
0 |
0 |
0 |
0 |
(5 |
) |
0 |
(83 |
) |
(88 |
) |
(88 |
) |
0 |
(88 |
) | ||||||||||||||||||||||||||||||||
DUB |
0 |
0 |
70 |
70 |
0 |
0 |
0 |
0 |
70 |
(102 |
) |
(32 |
) | |||||||||||||||||||||||||||||||||||
FAR |
41 |
0 |
0 |
41 |
0 |
0 |
(14 |
) |
(14 |
) |
27 |
0 |
27 |
|||||||||||||||||||||||||||||||||||
GLM |
8 |
0 |
0 |
8 |
(16 |
) |
0 |
0 |
(16 |
) |
(8 |
) |
0 |
(8 |
) | |||||||||||||||||||||||||||||||||
JPM |
3 |
0 |
0 |
3 |
(40 |
) |
0 |
0 |
(40 |
) |
(37 |
) |
0 |
(37 |
) | |||||||||||||||||||||||||||||||||
MBC |
19 |
0 |
0 |
19 |
0 |
0 |
0 |
0 |
19 |
0 |
19 |
|||||||||||||||||||||||||||||||||||||
MYC |
0 |
0 |
0 |
0 |
0 |
0 |
(381 |
) |
(381 |
) |
(381 |
) |
546 |
165 |
||||||||||||||||||||||||||||||||||
NGF |
1 |
0 |
0 |
1 |
0 |
0 |
0 |
0 |
1 |
0 |
1 |
|||||||||||||||||||||||||||||||||||||
SCX |
1 |
0 |
0 |
1 |
0 |
0 |
0 |
0 |
1 |
0 |
1 |
|||||||||||||||||||||||||||||||||||||
SOG |
541 |
0 |
0 |
541 |
(90 |
) |
0 |
0 |
(90 |
) |
451 |
(530 |
) |
(79 |
) | |||||||||||||||||||||||||||||||||
SSB |
10 |
0 |
0 |
10 |
(25 |
) |
0 |
0 |
(25 |
) |
(15 |
) |
0 |
(15 |
) | |||||||||||||||||||||||||||||||||
Total Over the Counter |
$ |
629 |
$ |
0 |
$ |
70 |
$ |
699 |
$ |
(188 |
) |
$ |
0 |
$ |
(478 |
) |
$ |
(666 |
) |
|||||||||||||||||||||||||||||
(m) |
Securities with an aggregate market value of $546 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of June 30, 2026. |
¨ |
Implied credit spread is not available due to significant unobservable inputs being used in the fair valuation. See Note 3, Investment Valuation and Fair Value Measurements, in the Notes to Financial Statements for more information. |
(1) |
If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
(2) |
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
(3) |
The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
(4) |
The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the underlying referenced instrument’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
(5) |
Receive represents that the Fund receives payments for any positive net return on the underlying reference. The Fund makes payments for any negative net return on such underlying reference. Pay represents that the Fund receives payments for any negative net return on the underlying reference. The Fund makes payments for any positive net return on such underlying reference. |
(6) |
Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information. |
FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS
The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 7, Principal and Other Risks, in the Notes to Financial Statements on risks of the Fund.
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of June 30, 2026:
Derivatives not accounted for as hedging instruments |
||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Exchange Contracts |
Interest Rate Contracts |
Total |
|||||||||||||||||||
Financial Derivative Instruments - Assets |
||||||||||||||||||||||||
Exchange-traded or centrally cleared |
||||||||||||||||||||||||
Futures |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
26 |
$ |
26 |
||||||||||||
Swap Agreements |
0 |
0 |
0 |
0 |
797 |
797 |
||||||||||||||||||
$ |
0 |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
823 |
$ |
823 |
|||||||||||||
See Accompanying Notes |
ANNUAL REPORT |
| |
JUNE 30, 2026 |
87 |
Schedule of Investments |
PIMCO Income Strategy Fund |
(Cont.) |
Derivatives not accounted for as hedging instruments |
||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Exchange Contracts |
Interest Rate Contracts |
Total |
|||||||||||||||||||
Over the counter |
||||||||||||||||||||||||
Forward Foreign Currency Contracts |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
629 |
$ |
0 |
$ |
629 |
||||||||||||
Swap Agreements |
0 |
70 |
0 |
0 |
0 |
70 |
||||||||||||||||||
$ |
0 |
$ |
70 |
$ |
0 |
$ |
629 |
$ |
0 |
$ |
699 |
|||||||||||||
$ |
0 |
$ |
70 |
$ |
0 |
$ |
629 |
$ |
823 |
$ |
1,522 |
|||||||||||||
Financial Derivative Instruments - Liabilities |
||||||||||||||||||||||||
Exchange-traded or centrally cleared |
||||||||||||||||||||||||
Swap Agreements |
$ |
0 |
$ |
5 |
$ |
0 |
$ |
0 |
$ |
1,190 |
$ |
1,195 |
||||||||||||
Over the counter |
||||||||||||||||||||||||
Forward Foreign Currency Contracts |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
188 |
$ |
0 |
$ |
188 |
||||||||||||
Swap Agreements |
0 |
464 |
14 |
0 |
0 |
478 |
||||||||||||||||||
$ |
0 |
$ |
464 |
$ |
14 |
$ |
188 |
$ |
0 |
$ |
666 |
|||||||||||||
$ |
0 |
$ |
469 |
$ |
14 |
$ |
188 |
$ |
1,190 |
$ |
1,861 |
|||||||||||||
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended June 30, 2026:
Derivatives not accounted for as hedging instruments |
||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Exchange Contracts |
Interest Rate Contracts |
Total |
|||||||||||||||||||
Net Realized Gain (Loss) on Financial Derivative Instruments |
||||||||||||||||||||||||
Exchange-traded or centrally cleared |
||||||||||||||||||||||||
Futures |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
256 |
$ |
256 |
||||||||||||
Swap Agreements |
0 |
168 |
0 |
0 |
(100 |
) |
68 |
|||||||||||||||||
$ |
0 |
$ |
168 |
$ |
0 |
$ |
0 |
$ |
156 |
$ |
324 |
|||||||||||||
Over the counter |
||||||||||||||||||||||||
Forward Foreign Currency Contracts |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
124 |
$ |
0 |
$ |
124 |
||||||||||||
Swap Agreements |
0 |
81 |
0 |
0 |
0 |
81 |
||||||||||||||||||
$ |
0 |
$ |
81 |
$ |
0 |
$ |
124 |
$ |
0 |
$ |
205 |
|||||||||||||
$ |
0 |
$ |
249 |
$ |
0 |
$ |
124 |
$ |
156 |
$ |
529 |
|||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
||||||||||||||||||||||||
Exchange-traded or centrally cleared |
||||||||||||||||||||||||
Futures |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
(138 |
) |
$ |
(138 |
) | ||||||||||
Swap Agreements |
0 |
83 |
0 |
0 |
(4,037 |
) |
(3,954 |
) | ||||||||||||||||
$ |
0 |
$ |
83 |
$ |
0 |
$ |
0 |
$ |
(4,175 |
) |
$ |
(4,092 |
) | |||||||||||
Over the counter |
||||||||||||||||||||||||
Forward Foreign Currency Contracts |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
1,498 |
$ |
0 |
$ |
1,498 |
||||||||||||
Swap Agreements |
0 |
164 |
(14 |
) |
0 |
0 |
150 |
|||||||||||||||||
$ |
0 |
$ |
164 |
$ |
(14 |
) |
$ |
1,498 |
$ |
0 |
$ |
1,648 |
||||||||||||
$ |
0 |
$ |
247 |
$ |
(14 |
) |
$ |
1,498 |
$ |
(4,175 |
) |
$ |
(2,444 |
) | ||||||||||
88 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2026 in valuing the Fund’s assets and liabilities:
Category and Subcategory |
Level 1 |
Level 2 |
Level 3 |
Fair Value at 06/30/2026 |
||||||||||||
Investments in Securities, at Value |
||||||||||||||||
Loan Participations and Assignments |
$ |
0 |
$ |
68,505 |
$ |
29,085 |
$ |
97,590 |
||||||||
Corporate Bonds & Notes |
||||||||||||||||
Banking & Finance |
0 |
25,159 |
1,143 |
26,302 |
||||||||||||
Industrials |
0 |
53,748 |
10,897 |
64,645 |
||||||||||||
Utilities |
0 |
19,482 |
0 |
19,482 |
||||||||||||
Convertible Bonds & Notes |
||||||||||||||||
Industrials |
0 |
2,563 |
0 |
2,563 |
||||||||||||
Municipal Bonds & Notes |
||||||||||||||||
Michigan |
0 |
1,052 |
0 |
1,052 |
||||||||||||
West Virginia |
0 |
2,195 |
0 |
2,195 |
||||||||||||
U.S. Government Agencies |
0 |
4,440 |
2,675 |
7,115 |
||||||||||||
U.S. Treasury Obligations |
0 |
427 |
0 |
427 |
||||||||||||
Non-Agency Mortgage-Backed Securities |
0 |
39,846 |
0 |
39,846 |
||||||||||||
Asset-Backed Securities |
||||||||||||||||
Automobile Sequential |
0 |
0 |
4,856 |
4,856 |
||||||||||||
Home Equity Other |
0 |
7,411 |
0 |
7,411 |
||||||||||||
Home Equity Sequential |
0 |
606 |
0 |
606 |
||||||||||||
Whole Loan Collateral |
0 |
3,410 |
0 |
3,410 |
||||||||||||
Other ABS |
0 |
4,973 |
9,340 |
14,313 |
||||||||||||
Sovereign Issues |
0 |
9,932 |
0 |
9,932 |
||||||||||||
Common Stocks |
||||||||||||||||
Communication Services |
1,597 |
0 |
1,898 |
3,495 |
||||||||||||
Consumer Discretionary |
0 |
0 |
10 |
10 |
||||||||||||
Financials |
6,507 |
3,740 |
0 |
10,247 |
||||||||||||
Industrials |
0 |
0 |
7,205 |
7,205 |
||||||||||||
Information Technology |
382 |
0 |
0 |
382 |
||||||||||||
Real Estate |
141 |
0 |
0 |
141 |
||||||||||||
Warrants |
||||||||||||||||
Communication Services |
0 |
0 |
728 |
728 |
||||||||||||
Preferred Securities |
||||||||||||||||
Banking & Finance |
0 |
1,639 |
4,654 |
6,293 |
||||||||||||
Industrials |
0 |
1,923 |
1,360 |
3,283 |
||||||||||||
Category and Subcategory |
Level 1 |
Level 2 |
Level 3 |
Fair Value at 06/30/2026 |
||||||||||||
Real Estate Investment Trusts |
||||||||||||||||
Real Estate |
$ |
1,217 |
$ |
0 |
$ |
0 |
$ |
1,217 |
||||||||
Loan Participations and Assignments |
0 |
0 |
0 |
0 |
||||||||||||
Short-Term Instruments |
||||||||||||||||
Mutual Funds |
375 |
0 |
0 |
375 |
||||||||||||
U.S. Treasury Bills |
0 |
447 |
0 |
447 |
||||||||||||
$ |
10,219 |
$ |
251,498 |
$ |
73,851 |
$ |
335,568 |
|||||||||
Investments in Affiliates, at Value |
||||||||||||||||
Short-Term Instruments |
||||||||||||||||
Central Funds Used for Cash Management Purposes |
$ |
40,195 |
$ |
0 |
$ |
0 |
$ |
40,195 |
||||||||
Total Investments |
$ |
50,414 |
$ |
251,498 |
$ |
73,851 |
$ |
375,763 |
||||||||
Financial Derivative Instruments - Assets |
||||||||||||||||
Exchange-traded or centrally cleared |
0 |
823 |
0 |
823 |
||||||||||||
Over the counter |
0 |
629 |
70 |
699 |
||||||||||||
$ |
0 |
$ |
1,452 |
$ |
70 |
$ |
1,522 |
|||||||||
Financial Derivative Instruments - Liabilities |
||||||||||||||||
Exchange-traded or centrally cleared |
0 |
(1,195 |
) |
0 |
(1,195 |
) | ||||||||||
Over the counter |
0 |
(666 |
) |
0 |
(666 |
) | ||||||||||
$ |
0 |
$ |
(1,861 |
) |
$ |
0 |
$ |
(1,861 |
) | |||||||
Total Financial Derivative Instruments |
$ |
0 |
$ |
(409 |
) |
$ |
70 |
$ |
(339 |
) | ||||||
Totals |
$ |
50,414 |
$ |
251,089 |
$ |
73,921 |
$ |
375,424 |
||||||||
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Fund during the period ended June 30, 2026:
Category and Subcategory |
Beginning Balance at 06/30/2025 |
Net Purchases (1) |
Net Sales/ Settlements (1) |
Accrued Discounts/ (Premiums) |
Realized Gain/(Loss) |
Net Change in Unrealized Appreciation/ (Depreciation) (2) |
Transfers into Level 3 |
Transfers out of Level 3 |
Ending Balance at 06/30/2026 |
Net Change in Unrealized Appreciation/ (Depreciation) on Investments Held at 06/30/2026 (2) |
||||||||||||||||||||||||||||||
Investments in Securities, at Value |
||||||||||||||||||||||||||||||||||||||||
Loan Participations and Assignments |
$ |
22,933 |
$ |
8,675 |
$ |
(13,980 |
) |
$ |
83 |
$ |
91 |
$ |
(1,020 |
) |
$ |
14,282 |
$ |
(1,979 |
) |
$ |
29,085 |
$ |
(149 |
) | ||||||||||||||||
Corporate Bonds & Notes |
||||||||||||||||||||||||||||||||||||||||
Banking & Finance |
0 |
1,170 |
0 |
0 |
0 |
(27 |
) |
0 |
0 |
1,143 |
(27 |
) | ||||||||||||||||||||||||||||
Industrials |
9,761 |
874 |
(720 |
) |
9 |
0 |
973 |
0 |
0 |
10,897 |
781 |
|||||||||||||||||||||||||||||
U.S. Government Agencies |
2,393 |
0 |
(72 |
) |
11 |
24 |
319 |
0 |
0 |
2,675 |
318 |
|||||||||||||||||||||||||||||
Asset-Backed Securities |
||||||||||||||||||||||||||||||||||||||||
Automobile Sequential |
5,082 |
0 |
(168 |
) |
0 |
0 |
(58 |
) |
0 |
0 |
4,856 |
(55 |
) | |||||||||||||||||||||||||||
Other ABS |
9,416 |
0 |
0 |
2 |
(584 |
) |
506 |
0 |
0 |
9,340 |
(9 |
) | ||||||||||||||||||||||||||||
Common Stocks |
||||||||||||||||||||||||||||||||||||||||
Communication Services |
5,407 |
0 |
(4,806 |
) |
0 |
2,554 |
(1,257 |
) |
0 |
0 |
1,898 |
1,823 |
||||||||||||||||||||||||||||
Consumer Discretionary |
9 |
0 |
0 |
0 |
0 |
1 |
0 |
0 |
10 |
0 |
||||||||||||||||||||||||||||||
Financials |
3,923 |
0 |
(4,020 |
) |
0 |
(3,922 |
) |
4,019 |
0 |
0 |
0 |
0 |
||||||||||||||||||||||||||||
Health Care |
12,416 |
0 |
(11,103 |
) |
0 |
(388 |
) |
(925 |
) |
0 |
0 |
0 |
0 |
|||||||||||||||||||||||||||
Industrials |
6,137 |
68 |
0 |
0 |
0 |
1,000 |
0 |
0 |
7,205 |
1,000 |
||||||||||||||||||||||||||||||
Real Estate (3) |
7 |
0 |
0 |
0 |
0 |
134 |
0 |
(141 |
) |
0 |
0 |
|||||||||||||||||||||||||||||
Warrants |
||||||||||||||||||||||||||||||||||||||||
Communication Services |
1,060 |
387 |
(956 |
) |
0 |
252 |
(15 |
) |
0 |
0 |
728 |
341 |
||||||||||||||||||||||||||||
Financials |
1 |
0 |
(3 |
) |
0 |
(2,265 |
) |
2,267 |
0 |
0 |
0 |
0 |
||||||||||||||||||||||||||||
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 89 |
Schedule of Investments |
PIMCO Income Strategy Fund |
(Cont.) |
June 30, 2026 |
Category and Subcategory |
Beginning Balance at 06/30/2025 |
Net Purchases (1) |
Net Sales/ Settlements (1) |
Accrued Discounts/ (Premiums) |
Realized Gain/(Loss) |
Net Change in Unrealized Appreciation/ (Depreciation) (2) |
Transfers into Level 3 |
Transfers out of Level 3 |
Ending Balance at 06/30/2026 |
Net Change in Unrealized Appreciation/ (Depreciation) on Investments Held at 06/30/2026 (2) |
||||||||||||||||||||||||||||||
Preferred Securities |
||||||||||||||||||||||||||||||||||||||||
Banking & Finance |
$ |
0 |
$ |
4,416 |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
238 |
$ |
0 |
$ |
0 |
$ |
4,654 |
$ |
238 |
||||||||||||||||||||
Industrials |
1,532 |
190 |
0 |
0 |
0 |
(362 |
) |
0 |
0 |
1,360 |
(362 |
) | ||||||||||||||||||||||||||||
$ |
80,077 |
$ |
15,780 |
$ |
(35,828 |
) |
$ |
105 |
$ |
(4,238 |
) |
$ |
5,793 |
$ |
14,282 |
$ |
(2,120 |
) |
$ |
73,851 |
$ |
3,899 |
||||||||||||||||||
Financial Derivative Instruments |
||||||||||||||||||||||||||||||||||||||||
Over the counter |
$ |
89 |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
(19 |
) |
$ |
0 |
$ |
0 |
$ |
70 |
$ |
(18 |
) | ||||||||||||||||||
Financial Derivative Instruments |
||||||||||||||||||||||||||||||||||||||||
Over the counter |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
(4 |
) |
$ |
16 |
$ |
(12 |
) |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
0 |
||||||||||||||||||
Totals |
$ |
80,166 |
$ |
15,780 |
$ |
(35,828 |
) |
$ |
101 |
$ |
(4,222 |
) |
$ |
5,762 |
$ |
14,282 |
$ |
(2,120 |
) |
$ |
73,921 |
$ |
3,881 |
|||||||||||||||||
The following is a summary of significant unobservable inputs used in the fair valuations of assets and liabilities categorized within Level 3 of the fair value hierarchy:
Category and Subcategory |
Ending Balance at 06/30/2026 |
Valuation Technique |
Unobservable Inputs |
(% Unless Noted Otherwise) |
||||||||||||||||
Input Value(s) |
Weighted Average |
|||||||||||||||||||
Investments in Securities, at Value |
||||||||||||||||||||
Loan Participations and Assignments |
$ |
12,318 |
Discounted Cash Flow |
Discount Rate |
6.790-9.960 |
9.064 |
||||||||||||||
2,082 |
Indicative Market Quotation |
Broker Quote |
101.250 |
— |
||||||||||||||||
14,685 |
Third Party Vendor |
Broker Quote |
57.500 - 97.950 |
96.360 |
||||||||||||||||
Corporate Bonds & Notes |
||||||||||||||||||||
Banking & Finance |
1,143 |
Discounted Cash Flow |
Discount Rate |
6 340 |
— |
|||||||||||||||
Industrials |
10,897 |
Comparable Companies / Discounted Cash Flow |
EBITDA Multiple/Discount Rate |
X/% |
13.000/10.250 |
— |
||||||||||||||
U.S. Government Agencies |
2,675 |
Discounted Cash Flow |
Discount Rate |
9.827 |
— |
|||||||||||||||
Asset-Backed Securities |
||||||||||||||||||||
Automobile Sequential |
4,856 |
Discounted Cash Flow |
Discount Rate |
10.941 |
— |
|||||||||||||||
Other ABS |
9,340 |
Discounted Cash Flow |
Discount Rate |
9.380-20.000 |
11.756 |
|||||||||||||||
Common Stocks |
||||||||||||||||||||
Communication Services |
1,720 |
Indicative Market Quotation |
Broker Quote |
$ |
15.125 |
— |
||||||||||||||
178 |
Reference Instrument |
Liquidity Discount |
14.000 |
— |
||||||||||||||||
Consumer Discretionary |
10 |
Expected Recovery |
Price |
$ |
— |
— |
||||||||||||||
Industrials |
6,120 |
Comparable Companies / Discounted Cash Flow |
EBITDA Multiple/Discount Rate |
X/% |
13.000/10.250 |
— |
||||||||||||||
211 |
Indicative Market Quotation / Recent Transaction |
Broker Quote / Purchase Price |
$/$ |
3.250/2.000 |
— |
|||||||||||||||
874 |
Indicative Market Quotation |
Broker Quote |
$ |
0.656-22.917 |
22.495 |
|||||||||||||||
Warrants |
||||||||||||||||||||
Communication Services |
728 |
Other Valuation Techniques (4) |
— |
— |
||||||||||||||||
Preferred Securities |
||||||||||||||||||||
Banking & Finance |
2,319 |
Discounted Cash Flow |
Discount Rate |
11.630 |
— |
|||||||||||||||
2,335 |
Recent transaction |
Purchase Price |
$ |
1.000 |
— |
|||||||||||||||
Industrials |
146 |
Comparable Companies |
Revenue/ EBITDA Multiple |
X |
4.625/18.000 |
— |
||||||||||||||
1,214 |
Discounted Cash Flow |
Discount Rate |
26.880 |
— |
||||||||||||||||
Financial Derivative Instruments |
||||||||||||||||||||
Over the counter |
70 |
Indicative Market Quotation |
Broker Quote |
5.109 |
— |
|||||||||||||||
Total |
$ |
73,921 |
||||||||||||||||||
(1) |
Net Purchases and Settlements for Financial Derivative Instruments may include payments made or received upon entering into swap agreements to compensate for differences between the stated terms of the swap agreement and prevailing market conditions. |
(2) |
Any difference between Net Change in Unrealized Appreciation/(Depreciation) and Net Change in Unrealized Appreciation/(Depreciation) on Investments Held at June 30, 2026 may be due to an investment no longer held or categorized as Level 3 at period end. |
(3) |
Sector type updated from Financials to Real Estate since prior fiscal year end. |
(4) |
Includes valuation techniques not defined in the Notes to Financial Statements as securities valued using such techniques are not considered significant to the Fund. |
90 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
Schedule of Investments |
PIMCO Income Strategy Fund II |
June 30, 2026 |
(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
INVESTMENTS IN SECURITIES 126.3% |
||||||||||||
LOAN PARTICIPATIONS AND ASSIGNMENTS 37.1% |
||||||||||||
ADI Global Distribution Funding LLC |
||||||||||||
TBD% due 06/17/2033 |
$ |
300 |
$ |
301 |
||||||||
Aligned Data Centers International LP |
||||||||||||
7.164% due 05/16/2028 «~ |
3,291 |
3,291 |
||||||||||
Altice France SA |
||||||||||||
7.798% (TSFR3M + 3.673%) due 04/30/2028 ~ |
295 |
297 |
||||||||||
8.735% - 8.736% (TSFR3M + 3.673%) due 10/30/2028 ~ |
4,031 |
4,033 |
||||||||||
9.048% (TSFR3M + 3.653%) due 05/14/2029 ~ |
3,834 |
3,852 |
||||||||||
9.079% (EUR003M + 2.240%) due 05/30/2031 ~ |
EUR |
75 |
88 |
|||||||||
10.548% (TSFR3M + 3.673%) due 05/31/2031 ~ |
$ |
2,133 |
2,182 |
|||||||||
Bausch Health Cos., Inc. |
||||||||||||
9.894% (TSFR1M + 3.644%) due 10/08/2030 ~ |
5,343 |
5,193 |
||||||||||
BDO USA PC |
||||||||||||
8.121% (TSFR1M + 3.621%) due 08/31/2028 «~ |
190 |
188 |
||||||||||
8.648% (TSFR3M + 3.643%) due 08/31/2028 «~ |
2,476 |
2,473 |
||||||||||
Central Parent, Inc. |
||||||||||||
6.982% (TSFR3M + 3.732%) due 07/06/2029 ~ |
9,951 |
6,568 |
||||||||||
Clover Holdings 2 LLC |
||||||||||||
TBD% - 4.000% due 12/10/2029 «µ |
772 |
712 |
||||||||||
7.375% (TSFR1M + 3.633%) due 12/09/2031 ~ |
875 |
837 |
||||||||||
Coreweave Compute Acquisition Co. IV LLC |
||||||||||||
9.661% - 9.732% (TSFR3M + 3.666%) due 05/16/2029 «~ |
3,809 |
3,927 |
||||||||||
Crowe LLP |
||||||||||||
TBD% due 05/13/2033 «µ |
2,500 |
2,477 |
||||||||||
TBD% - 0.500% due 05/13/2033 «µ |
200 |
198 |
||||||||||
Databricks, Inc. |
||||||||||||
TBD% - 1.000% due 01/05/2032 µ |
344 |
344 |
||||||||||
8.114% (TSFR1M + 3.612%) due 01/05/2032 ~ |
1,556 |
1,554 |
||||||||||
Dialysis Holdco LLC |
||||||||||||
9.644% (TSFR1M + 3.644%) due 11/26/2030 «~ |
5,425 |
5,513 |
||||||||||
Discovery Global Holdings, Inc. |
||||||||||||
6.144% (TSFR1M + 3.644%) due 06/03/2033 ~ |
5,198 |
5,206 |
||||||||||
Dun & Bradstreet Corp. |
||||||||||||
TBD% - 9.121% (TSFR1M + 3.621%) due 08/26/2032 «~µ |
149 |
147 |
||||||||||
9.153% (TSFR1M + 3.644%) due 08/26/2032 «~ |
1,483 |
1,399 |
||||||||||
Envalior Finance GmbH |
||||||||||||
7.650% (EUR003M + 2.150%) due 03/29/2030 ~ |
EUR |
2,100 |
2,233 |
|||||||||
Finastra USA, Inc. |
||||||||||||
7.746% (TSFR6M + 3.751%) due 09/15/2032 ~ |
$ |
9,227 |
8,530 |
|||||||||
10.751% (TSFR6M + 3.751%) due 09/15/2033 «~ |
3,055 |
2,688 |
||||||||||
Forward Air Corp. |
||||||||||||
8.163% (TSFR3M + 3.663%) due 12/19/2030 ~ |
8,619 |
8,150 |
||||||||||
Gaia Purchaser, Inc. |
||||||||||||
TBD% due 06/25/2033 « |
400 |
400 |
||||||||||
Galaxy U.S. Opco, Inc. (5.663% Cash and 3.250% PIK) |
||||||||||||
8.913% (TSFR3M + 3.663%) due 07/31/2030 ~(c) |
4,742 |
4,359 |
||||||||||
Gateway Casinos & Entertainment Ltd. |
||||||||||||
9.918% (TSFR3M + 3.668%) due 12/18/2030 ~ |
6,023 |
6,012 |
||||||||||
Ineos U.S. Finance LLC |
||||||||||||
6.894% (TSFR1M + 3.644%) due 02/18/2030 ~ |
4,183 |
3,863 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
ION Platform Finance U.S., Inc. |
||||||||||||
7.482% (TSFR3M + 3.732%) due 10/07/2032 ~ |
$ |
3,493 |
$ |
2,528 |
||||||||
Ivanti Software, Inc. |
||||||||||||
TBD% - 9.414% (TSFR3M + 3.658%) due 06/01/2029 ~µ |
1,228 |
1,193 |
||||||||||
8.414% (TSFR3M + 3.658%) due 06/01/2029 ~ |
9,191 |
4,067 |
||||||||||
J&J Ventures Gaming LLC |
||||||||||||
8.758% (TSFR1M + 3.644%) due 04/26/2028 «~ |
1,051 |
1,051 |
||||||||||
Lealand Finance Co. BV |
||||||||||||
6.758% (TSFR1M + 3.644%) due 06/30/2027 ~ |
88 |
85 |
||||||||||
Lealand Finance Co. BV (4.758% Cash and 3.000% PIK) |
||||||||||||
7.758% (TSFR1M + 3.644%) due 12/31/2027 ~(c) |
936 |
906 |
||||||||||
Magenta Security Holdings LLC |
||||||||||||
9.913% (TSFR3M + 3.663%) due 07/27/2028 ~ |
113 |
112 |
||||||||||
10.173% (TSFR3M + 3.663%) due 07/27/2028 ~ |
552 |
95 |
||||||||||
10.673% (TSFR3M + 3.663%) due 07/27/2028 ~ |
119 |
80 |
||||||||||
10.923% (TSFR3M + 3.663%) due 07/27/2028 ~ |
155 |
59 |
||||||||||
McAfee LLC |
||||||||||||
6.644% (TSFR1M + 3.644%) due 03/01/2029 ~ |
2,680 |
2,389 |
||||||||||
Mercury Aggregator LP |
||||||||||||
TBD% due 04/03/2027 « |
2,450 |
0 |
||||||||||
MH Sub I LLC |
||||||||||||
7.894% (TSFR1M + 3.644%) due 12/31/2031 ~ |
1,872 |
1,627 |
||||||||||
MPH Acquisition Holdings LLC |
||||||||||||
7.413% (TSFR3M + 3.663%) due 12/31/2030 ~ |
4,742 |
4,758 |
||||||||||
8.263% (TSFR3M + 3.663%) due 12/31/2030 ~ |
8,107 |
7,159 |
||||||||||
Newfold Digital Holdings Group, Inc. |
||||||||||||
7.214% (TSFR1M + 3.612%) due 04/30/2029 ~ |
2,856 |
2,130 |
||||||||||
9.364% (TSFR1M + 3.612%) due 04/30/2029 ~ |
202 |
164 |
||||||||||
Nscale AS |
||||||||||||
TBD% - 8.664% (TSFR3M + 3.670%) due 08/23/2032 «~µ |
2,981 |
2,981 |
||||||||||
Peraton Corp. |
||||||||||||
7.513% (TSFR3M + 3.663%) due 02/01/2028 ~ |
16,966 |
15,354 |
||||||||||
11.516% (TSFR3M + 3.666%) due 02/01/2029 ~ |
1,763 |
1,199 |
||||||||||
Polaris Newco LLC |
||||||||||||
6.150% (EUR003M + 2.150%) due 06/02/2028 ~ |
EUR |
4,366 |
4,335 |
|||||||||
7.925% (TSFR3M + 3.663%) due 06/02/2028 ~ |
$ |
7,302 |
6,364 |
|||||||||
Poseidon Bidco SASU |
||||||||||||
7.504% due 03/13/2030 |
EUR |
2,700 |
895 |
|||||||||
Promotora de Informaciones SA |
||||||||||||
7.674% (EUR003M + 2.168%) due 12/31/2029 «~ |
21,913 |
24,475 |
||||||||||
QXO, Inc. |
||||||||||||
TBD% due 04/30/2032 |
$ |
1,300 |
1,299 |
|||||||||
SCUR-Alpha 1503 GmbH |
||||||||||||
9.163% (TSFR3M + 3.663%) due 04/01/2030 ~ |
3,194 |
2,790 |
||||||||||
Softbank Vision Fund II |
||||||||||||
7.382% (TSFR3M + 3.732%) due 04/25/2029 «~ |
4,801 |
4,884 |
||||||||||
Spruce Bidco II, Inc. |
||||||||||||
TBD% - 8.461% (TSFR6M + 3.621%) due 01/30/2032 «~µ |
244 |
244 |
||||||||||
5.977% (JY0003M + 0.000%) due 01/30/2032 «~ |
JPY |
20,784 |
129 |
|||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
7.047% (CDOR06 + 0.000%) due 01/30/2032 «~ |
CAD |
194 |
$ |
138 |
||||||||
8.413% (TSFR3M + 3.663%) due 01/30/2032 «~ |
$ |
1,074 |
1,081 |
|||||||||
Steenbok Lux Finco 2 SARL |
||||||||||||
1TBD% due 12/31/2028 |
EUR |
18,630 |
8,619 |
|||||||||
Stepstone Group Midco 2 GmbH |
||||||||||||
6.885% (EUR006M + 2.459%) due 04/26/2032 ~ |
8,500 |
7,973 |
||||||||||
8.176% - 8.179% (TSFR6M + 3.679%) due 12/19/2031 ~ |
$ |
1,287 |
1,043 |
|||||||||
Stormlight |
||||||||||||
8.370% due 05/13/2030 «~ |
2,871 |
2,871 |
||||||||||
Subcalidora 2 |
||||||||||||
8.041% (EUR003M + 2.291%) due 08/14/2029 «~ |
EUR |
5,900 |
6,705 |
|||||||||
Syniverse Holdings, Inc. |
||||||||||||
10.732% (TSFR3M + 3.732%) due 05/13/2027 ~ |
$ |
16,744 |
14,603 |
|||||||||
U.S. Renal Care, Inc. |
||||||||||||
8.758% (TSFR1M + 3.644%) due 06/28/2028 ~ |
17,782 |
17,531 |
||||||||||
Unicorn Bay |
||||||||||||
13.000% due 12/31/2026 « |
HKD |
28,074 |
3,624 |
|||||||||
Upfield BV |
||||||||||||
8.980% due 10/31/2030 ~ |
GBP |
3,500 |
4,448 |
|||||||||
Virgin Media Bristol LLC |
||||||||||||
6.967% (TSFR6M + 3.692%) due 03/31/2031 ~ |
$ |
800 |
712 |
|||||||||
6.990% (TSFR1M + 3.633%) due 01/31/2029 ~ |
2,600 |
2,498 |
||||||||||
Westmoreland Coal Co. |
||||||||||||
8.000% due 03/15/2029 « |
1,465 |
843 |
||||||||||
Worthington Steel, Inc. |
||||||||||||
7.620% - 7.621% (TSFR1M + 3.624%) due 06/01/2033 ~ |
1,000 |
999 |
||||||||||
Total Loan Participations and Assignments (Cost $281,553) |
254,055 |
|||||||||||
CORPORATE BONDS & NOTES 44.0% |
||||||||||||
BANKING & FINANCE 8.6% |
||||||||||||
Alamo Re Ltd. |
||||||||||||
14.289% (T-BILL 1MO + 10.500%)due 06/07/2028 ~ |
700 |
699 |
||||||||||
Antares Holdings LP |
||||||||||||
6.350% due 10/23/2029 (n) |
400 |
399 |
||||||||||
Armor Holdco, Inc. |
||||||||||||
8.500% due 11/15/2029 (n) |
2,700 |
2,718 |
||||||||||
Banco Mercantil del Norte SA |
||||||||||||
8.000% due 01/24/2033 •(j)(k) |
1,500 |
1,503 |
||||||||||
8.450% due 06/24/2036 •(j)(k) |
1,500 |
1,504 |
||||||||||
Blue Owl Capital Corp. |
||||||||||||
6.450% due 09/15/2028 (n) |
600 |
608 |
||||||||||
BOI Finance BV |
||||||||||||
7.500% due 02/16/2027 (n) |
EUR |
2,700 |
3,147 |
|||||||||
Cape Lookout Re Ltd. |
||||||||||||
8.770% (FHMMUSTF + 5.250%) due 03/21/2033 ~ |
$ |
250 |
247 |
|||||||||
9.520% (FHMMUSTF + 6.000%) due 03/21/2033 ~ |
250 |
250 |
||||||||||
12.226% (GSMMUSTF + 8.702%) due 04/05/2027 ~ |
800 |
799 |
||||||||||
Commonwealth RE Ltd. |
||||||||||||
7.407% (JMMMUSTF + 3.857%) due 07/08/2030 ~ |
2,600 |
2,601 |
||||||||||
Credicorp Capital Sociedad Titulizadora SA |
||||||||||||
9.700% due 03/05/2045 |
PEN |
900 |
282 |
|||||||||
Credit Suisse AG AT1 Claim |
$ |
8,393 |
2,959 |
|||||||||
East Lane Re VII Ltd. |
||||||||||||
12.050% (BRMMUSDF + 8.500%) due 03/31/2032 ~ |
250 |
251 |
||||||||||
Everglades Re II Ltd. |
||||||||||||
12.039% (T-BILL 1MO + 8.250%) due 05/22/2033 ~ |
250 |
250 |
||||||||||
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 91 |
Schedule of Investments |
PIMCO Income Strategy Fund II |
(Cont.) |
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
Ford Motor Credit Co. LLC |
||||||||||||
5.667% (SOFRRATE + 2.030%) due 03/20/2028 ~(n) |
$ |
700 |
$ |
709 |
||||||||
Gateway Re Ltd. |
||||||||||||
5.550% (BRMMUSDF + 2.000%) due 07/06/2029 ~ |
700 |
700 |
||||||||||
Golden Bear Re Ltd. |
||||||||||||
13.289% (T-BILL 1MO + 9.500%) due 03/08/2032 ~ |
250 |
252 |
||||||||||
13.300% (JMMMUSTF + 9.750%) due 01/08/2029 ~ |
420 |
431 |
||||||||||
Greengrove RE Ltd. |
||||||||||||
11.270% (BNMMDTSC + 7.750%) due 04/08/2032 ~ |
250 |
255 |
||||||||||
GSPA Monetization Trust |
||||||||||||
6.422% due 10/09/2029 |
1,520 |
1,522 |
||||||||||
Hestia Re Ltd. |
||||||||||||
3.620% (BNMMDTSC + 0.100%) due 04/22/2029 ~ |
20 |
11 |
||||||||||
IIFL Finance Ltd. |
||||||||||||
7.600% due 09/10/2029 (n) |
300 |
302 |
||||||||||
Integrity RE III Ltd. |
||||||||||||
29.020% (FHMMUSTF + 25.500%) due 06/06/2027 ~ |
250 |
261 |
||||||||||
ION Platform Finance SARL |
||||||||||||
6.500% due 09/30/2030 (n) |
EUR |
600 |
553 |
|||||||||
6.500% due 09/30/2030 |
100 |
92 |
||||||||||
6.875% due 09/30/2032 (n) |
1,300 |
1,109 |
||||||||||
7.875% due 05/01/2029 (n) |
3,020 |
3,123 |
||||||||||
7.875% due 05/01/2029 |
2,400 |
2,482 |
||||||||||
ION Platform Finance U.S., Inc. |
||||||||||||
7.875% due 09/30/2032 (n) |
$ |
2,100 |
1,524 |
|||||||||
ION Platform Finance U.S., Inc./ION Platform Finance SARL |
||||||||||||
9.000% due 08/01/2029 (n) |
1,380 |
1,229 |
||||||||||
9.500% due 05/30/2029 (n) |
800 |
731 |
||||||||||
Iron Mountain, Inc. |
||||||||||||
6.250% due 01/15/2035 (n) |
1,400 |
1,407 |
||||||||||
Long Point Re IV Ltd. |
||||||||||||
7.289% (T-BILL 1MO + 3.500%)due 06/01/2034 ~ |
250 |
250 |
||||||||||
Lower Ferry Re Ltd. |
||||||||||||
8.156% (MSMMUSTF + 4.646%) due 07/08/2030 ~ |
500 |
500 |
||||||||||
9.014% (MSMMUSTF + 5.504%) due 07/08/2030 ~ |
3,600 |
3,601 |
||||||||||
Luca RE Ltd. |
||||||||||||
10.800% (JMMMUSTF + 7.250%) due 07/22/2031 ~ |
300 |
312 |
||||||||||
Mayflower Re Ltd. |
||||||||||||
8.565% (FHMMUSTF + 5.045%) due 07/08/2030 ~ |
800 |
800 |
||||||||||
10.033% (FHMMUSTF + 6.513%) due 07/08/2030 ~ |
4,800 |
4,804 |
||||||||||
Nature Coast Re Ltd. |
||||||||||||
11.789% (T-BILL 3MO + 8.000%) due 02/26/2030 ~ |
250 |
252 |
||||||||||
13.271% (GSMMUSTI + 9.750%) due 04/10/2033 ~ |
250 |
260 |
||||||||||
Polestar Re Ltd. |
||||||||||||
14.140% (BRMMUSDF + 10.590%) due 01/07/2028 ~ |
250 |
260 |
||||||||||
16.800% (BRMMUSDF + 13.250%) due 01/07/2027 ~ |
800 |
821 |
||||||||||
Quercus II Re DAC |
||||||||||||
13.324% (EUR003M + 11.000%) due 01/07/2031 ~ |
EUR |
250 |
290 |
|||||||||
Sanders Re III Ltd. |
||||||||||||
15.870% (BRMMUSDF + 12.320%) due 04/09/2029 ~ |
$ |
732 |
240 |
|||||||||
Stingray Compute LLC |
||||||||||||
6.000% due 06/15/2031 |
100 |
100 |
||||||||||
Titanium 2l Bondco SARL |
||||||||||||
6.250% due 01/14/2031 |
EUR |
7,027 |
1,176 |
|||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
Torrey Pines Re Ltd. |
||||||||||||
9.586% (JMMMUSTF + 6.036%) due 06/07/2032 ~ |
$ |
250 |
$ |
257 |
||||||||
10.656% (JMMMUSTF + 7.106%) due 06/07/2032 ~ |
250 |
258 |
||||||||||
Uniti Group LP/Uniti Fiber Holdings, Inc./CSL Capital LLC |
||||||||||||
6.000% due 01/15/2030 (n) |
8,265 |
8,081 |
||||||||||
Ursa Re II Ltd. |
||||||||||||
11.260% (MSMMUSTF + 7.750%) due 06/07/2028 ~ |
250 |
257 |
||||||||||
Ursa Re Ltd. |
||||||||||||
11.021% (GSMMUSTI + 7.500%) due 02/22/2028 ~ |
300 |
310 |
||||||||||
12.800% (JMMMUSTF + 9.250%) due 12/07/2028 ~ |
800 |
815 |
||||||||||
Winston RE Ltd. |
||||||||||||
15.210% (BNMMDTSC + 11.690%) due 02/26/2031 ~ |
600 |
612 |
||||||||||
59,166 |
||||||||||||
INDUSTRIALS 29.9% |
||||||||||||
ADI Escrow Issuer LLC |
||||||||||||
7.125% due 07/15/2034 |
200 |
204 |
||||||||||
Altice France Lux 3/Altice Holdings 1 |
||||||||||||
10.000% due 01/15/2033 (n) |
763 |
751 |
||||||||||
Altice France SA |
||||||||||||
6.875% due 10/15/2030 (n) |
524 |
509 |
||||||||||
9.500% due 11/01/2029 (n) |
1,424 |
1,447 |
||||||||||
ams-OSRAM AG |
||||||||||||
7.250% due 05/31/2032 |
EUR |
720 |
849 |
|||||||||
10.500% due 03/30/2029 (n) |
637 |
776 |
||||||||||
APLD ComputeCo 3 LLC |
||||||||||||
7.000% due 06/15/2031 |
$ |
600 |
600 |
|||||||||
Aston Martin Capital Holdings Ltd. |
||||||||||||
10.000% due 03/31/2029 (n) |
600 |
467 |
||||||||||
Australian Metcoal Financing Pty. Ltd. |
||||||||||||
6.250% due 10/22/2031 (n) |
500 |
509 |
||||||||||
6.750% due 04/22/2034 (n) |
500 |
516 |
||||||||||
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. |
||||||||||||
8.000% due 02/15/2031 (n) |
300 |
303 |
||||||||||
Beazer Homes USA, Inc. |
||||||||||||
8.000% due 01/15/2032 |
200 |
201 |
||||||||||
Beignet Investor LLC |
||||||||||||
6.581% due 05/30/2049 (n) |
13,510 |
13,789 |
||||||||||
Central Parent LLC/CDK Global II LLC/CDK Financing Co., Inc. |
||||||||||||
8.000% due 06/15/2029 |
850 |
553 |
||||||||||
Central Parent, Inc./CDK Global, Inc. |
||||||||||||
7.250% due 06/15/2029 |
1,630 |
1,060 |
||||||||||
Cerdia Finanz GmbH |
||||||||||||
9.375% due 10/03/2031 |
1,900 |
1,707 |
||||||||||
Cheplapharm Arzneimittel GmbH |
||||||||||||
7.500% due 05/15/2030 (n) |
EUR |
10,400 |
12,332 |
|||||||||
Cogent Communications Group LLC/Cogent Finance, Inc. |
||||||||||||
6.500% due 07/01/2032 |
$ |
2,600 |
2,343 |
|||||||||
7.000% due 06/15/2027 (n) |
1,600 |
1,590 |
||||||||||
7.000% due 06/15/2027 |
1,700 |
1,689 |
||||||||||
CVR Energy, Inc. |
||||||||||||
7.500% due 02/15/2031 (n) |
900 |
896 |
||||||||||
CVS Pass-Through Trust |
||||||||||||
7.507% due 01/10/2032 (n) |
467 |
488 |
||||||||||
DISH DBS Corp. |
||||||||||||
5.250% due 12/01/2026 (n) |
9,200 |
9,107 |
||||||||||
5.750% due 12/01/2028 (n) |
7,160 |
6,942 |
||||||||||
7.750% due 07/01/2026 |
4,500 |
4,500 |
||||||||||
Ecopetrol SA |
||||||||||||
7.750% due 02/01/2032 (n) |
11,800 |
12,363 |
||||||||||
ELK Grove Village Property LLC |
||||||||||||
7.500% due 06/15/2031 |
500 |
504 |
||||||||||
Flora Food Management BV |
||||||||||||
6.875% due 07/02/2029 (n) |
EUR |
800 |
894 |
|||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
7.500% due 10/31/2030 |
EUR |
500 |
$ |
570 |
||||||||
FMC Corp. |
||||||||||||
8.000% due 06/01/2031 |
$ |
200 |
208 |
|||||||||
Ford Motor Co. |
||||||||||||
7.700% due 05/15/2097 (n) |
6,155 |
6,469 |
||||||||||
Gaia Purchaser, Inc. |
||||||||||||
7.625% due 07/15/2033 (b) |
100 |
101 |
||||||||||
GSG Bidco Ltd. |
||||||||||||
5.375% due 06/15/2036 |
EUR |
900 |
1,021 |
|||||||||
HCA, Inc. |
||||||||||||
7.500% due 11/15/2095 (n) |
$ |
1,000 |
1,082 |
|||||||||
Hybar LLC |
||||||||||||
7.375% due 07/01/2034 |
200 |
201 |
||||||||||
Incora Intermediate II LLC (0.500% PIK) |
||||||||||||
0.500% due 01/31/2030 «(c) |
8,303 |
8,303 |
||||||||||
Incora Top Holdco LLC |
||||||||||||
6.000% due 01/30/2033 «(m) |
7,124 |
11,229 |
||||||||||
Intralot Capital Luxembourg SA |
||||||||||||
6.731% due 10/15/2031 •(n) |
EUR |
1,400 |
1,617 |
|||||||||
6.750% due 10/15/2031 |
2,700 |
3,136 |
||||||||||
JetBlue Airways Corp./JetBlue Loyalty LP |
||||||||||||
9.875% due 09/20/2031 (n) |
$ |
1,365 |
1,238 |
|||||||||
Kronos International, Inc. |
||||||||||||
9.500% due 03/15/2029 (n) |
EUR |
2,500 |
2,819 |
|||||||||
Motion Finco SARL |
||||||||||||
8.375% due 02/15/2032 (n) |
$ |
300 |
254 |
|||||||||
National Mentor Holdings, Inc. |
||||||||||||
10.500% due 12/15/2030 |
300 |
316 |
||||||||||
New Albertsons LP |
||||||||||||
6.570% due 02/23/2028 (n) |
6,800 |
6,843 |
||||||||||
Newfold Digital Holdings Group, Inc. |
||||||||||||
11.750% due 04/30/2029 |
1,173 |
783 |
||||||||||
Nissan Motor Co. Ltd. |
||||||||||||
4.810% due 09/17/2030 (n) |
3,300 |
3,075 |
||||||||||
7.500% due 07/17/2030 (n) |
1,600 |
1,650 |
||||||||||
Noble Finance II LLC |
||||||||||||
8.000% due 04/15/2030 (n) |
6,522 |
6,761 |
||||||||||
Ocado Group PLC |
||||||||||||
10.500% due 08/08/2029 (n) |
GBP |
1,950 |
2,685 |
|||||||||
11.000% due 06/15/2030 (n) |
3,550 |
4,973 |
||||||||||
Petroleos de Venezuela SA |
||||||||||||
6.000% due 11/15/2026 ^(d) |
$ |
3,200 |
1,208 |
|||||||||
9.750% due 05/17/2035 ^(d) |
1,600 |
716 |
||||||||||
QXO Building Products, Inc. |
||||||||||||
6.500% due 07/15/2031 |
500 |
510 |
||||||||||
6.875% due 07/15/2034 |
600 |
616 |
||||||||||
Road Michigan Property Owner I LLC |
||||||||||||
7.500% due 03/30/2045 (n) |
16,978 |
16,931 |
||||||||||
Russian Railways Via RZD Capital PLC |
||||||||||||
7.487% due 03/25/2031 ^(d) |
GBP |
1,300 |
1,207 |
|||||||||
Topaz Solar Farms LLC |
||||||||||||
4.875% due 09/30/2039 (n) |
$ |
1,510 |
1,340 |
|||||||||
5.750% due 09/30/2039 (n) |
3,459 |
3,408 |
||||||||||
Toucan FinCo Ltd./Toucan FinCo Can, Inc./Toucan FinCo U.S. LLC |
||||||||||||
8.250% due 05/15/2030 (n) |
EUR |
1,200 |
1,255 |
|||||||||
Tutor Perini Corp. |
||||||||||||
6.625% due 07/15/2033 (b) |
$ |
500 |
503 |
|||||||||
U.S. Renal Care, Inc. |
||||||||||||
10.625% due 06/28/2028 |
1,704 |
1,585 |
||||||||||
Ubisoft Entertainment SA |
||||||||||||
0.878% due 11/24/2027 (n) |
EUR |
1,400 |
1,416 |
|||||||||
Valaris Ltd. |
||||||||||||
8.375% due 04/30/2030 (n) |
$ |
5,883 |
6,112 |
|||||||||
Vale SA |
||||||||||||
0.000% due 12/29/2049 ~(j) |
BRL |
110,000 |
8,552 |
|||||||||
Vedanta Resources Finance II PLC |
||||||||||||
7.000% due 07/13/2032 (b) |
$ |
1,400 |
1,393 |
|||||||||
7.375% due 07/13/2034 (b) |
1,400 |
1,388 |
||||||||||
7.750% due 07/13/2037 (b) |
1,400 |
1,392 |
||||||||||
Viridien |
||||||||||||
8.500% due 10/15/2030 (n) |
EUR |
1,085 |
1,313 |
|||||||||
10.000% due 10/15/2030 (n) |
$ |
2,069 |
2,199 |
|||||||||
92 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
VistaJet Malta Finance PLC/Vista Management Holding, Inc. |
||||||||||||
8.750% due 01/15/2032 (n) |
$ |
3,300 |
$ |
3,272 |
||||||||
Vmed O2 U.K. Financing I PLC |
||||||||||||
6.750% due 01/15/2033 (n) |
3,300 |
2,797 |
||||||||||
VZ Secured Financing BV |
||||||||||||
7.500% due 01/15/2033 (n) |
1,300 |
1,245 |
||||||||||
Wayfair LLC |
||||||||||||
7.750% due 09/15/2030 (n) |
1,300 |
1,368 |
||||||||||
204,949 |
||||||||||||
UTILITIES 5.5% |
||||||||||||
Altice Holdings 1 SARL |
||||||||||||
0.000% due 12/31/2099 « |
EUR |
9 |
138 |
|||||||||
COX Asset Mexico SA de CV |
||||||||||||
7.125% due 01/08/2032 (n) |
$ |
200 |
203 |
|||||||||
7.750% due 05/08/2036 (n) |
200 |
205 |
||||||||||
FORESEA Holding SA |
||||||||||||
7.500% due 06/15/2030 (n) |
1,171 |
1,157 |
||||||||||
NGD Holdings BV |
||||||||||||
9.875% due 12/31/2029 |
231 |
226 |
||||||||||
Nova Securitisation SARL |
||||||||||||
5.750% due 02/03/2031 (n) |
1,800 |
1,737 |
||||||||||
6.500% due 02/03/2036 (n) |
1,200 |
1,129 |
||||||||||
OI SA |
||||||||||||
8.500% due 12/31/2028 ^(d) |
29,596 |
315 |
||||||||||
10.000% due 06/30/2027 ^(d) |
14,272 |
6,958 |
||||||||||
PBF Holding Co. LLC/PBF Finance Corp. |
||||||||||||
7.250% due 06/01/2034 (n) |
700 |
693 |
||||||||||
Peru LNG SRL |
||||||||||||
5.375% due 03/22/2030 (n) |
5,228 |
5,088 |
||||||||||
Qwest Corp. |
||||||||||||
7.750% due 05/01/2030 (n) |
12,625 |
12,530 |
||||||||||
SW Finance I PLC |
||||||||||||
1.625% due 03/30/2027 |
GBP |
1,400 |
1,809 |
|||||||||
Uniti Group LP/Uniti Group Finance 2019, Inc./CSL Capital LLC |
||||||||||||
6.500% due 02/15/2029 (n) |
$ |
3,000 |
2,979 |
|||||||||
Veon Midco BV |
||||||||||||
6.950% due 06/01/2031 (n) |
1,100 |
1,099 |
||||||||||
7.450% due 06/01/2033 (n) |
1,100 |
1,098 |
||||||||||
37,364 |
||||||||||||
Total Corporate Bonds & Notes (Cost $331,150) |
301,479 |
|||||||||||
CONVERTIBLE BONDS & NOTES 2.8% |
||||||||||||
INDUSTRIALS 2.8% |
||||||||||||
ams-OSRAM AG |
||||||||||||
2.125% due 11/03/2027 (n) |
EUR |
11,300 |
12,685 |
|||||||||
DISH Network Corp. |
||||||||||||
3.375% due 08/15/2026 |
$ |
3,400 |
3,300 |
|||||||||
Ubisoft Entertainment SA |
||||||||||||
2.375% due 11/15/2028 (n) |
EUR |
2,700 |
3,031 |
|||||||||
Total Convertible Bonds & Notes (Cost $19,258) |
19,016 |
|||||||||||
MUNICIPAL BONDS & NOTES 0.9% |
||||||||||||
MICHIGAN 0.2% |
||||||||||||
Detroit, Michigan General Obligation Bonds, Series 2014 |
||||||||||||
4.000% due 04/01/2044 |
$ |
2,077 |
1,700 |
|||||||||
WEST VIRGINIA 0.7% |
||||||||||||
Tobacco Settlement Finance Authority, West Virginia Revenue Bonds, Series 2007 |
||||||||||||
0.000% due 06/01/2047 (g) |
45,700 |
4,579 |
||||||||||
Total Municipal Bonds & Notes (Cost $8,281) |
6,279 |
|||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
U.S. GOVERNMENT AGENCIES 3.9% |
||||||||||||
Federal Home Loan Mortgage Corp. Military Housing Bonds Resecuritization Trust Certificates |
||||||||||||
0.700% due 11/25/2055 ~(a)(n) |
$ |
31,585 |
$ |
1,851 |
||||||||
5.992% due 11/25/2055 «~ |
7,660 |
5,668 |
||||||||||
Federal Home Loan Mortgage Corp. REMICS |
||||||||||||
2.115% due 09/15/2035 • |
776 |
675 |
||||||||||
3.000% due 02/15/2033 (a) |
369 |
18 |
||||||||||
Federal Home Loan Mortgage Corp. STACR REMICS Trust |
||||||||||||
11.128% due 10/25/2041 •(n) |
6,000 |
6,113 |
||||||||||
11.428% due 11/25/2041 •(n) |
7,100 |
7,277 |
||||||||||
12.128% due 02/25/2042 • |
1,800 |
1,881 |
||||||||||
Federal Home Loan Mortgage Corp. STRIPS |
||||||||||||
3.500% due 12/15/2032 (a) |
526 |
41 |
||||||||||
Federal National Mortgage Association Connecticut Avenue Securities Trust |
||||||||||||
9.128% due 12/25/2041 • |
1,000 |
1,019 |
||||||||||
9.628% due 12/25/2041 •(n) |
2,300 |
2,350 |
||||||||||
Federal National Mortgage Association REMICS |
||||||||||||
2.508% due 01/25/2040 •(a) |
67 |
4 |
||||||||||
3.500% due 02/25/2042 (a) |
176 |
12 |
||||||||||
4.500% due 11/25/2042 (a) |
364 |
32 |
||||||||||
Government National Mortgage Association REMICS |
||||||||||||
3.500% due 06/20/2042 - 10/20/2042 (a) |
102 |
7 |
||||||||||
4.000% due 10/16/2042 - 10/20/2042 (a) |
65 |
5 |
||||||||||
Total U.S. Government Agencies (Cost $27,367) |
26,953 |
|||||||||||
U.S. TREASURY OBLIGATIONS 0.1% |
||||||||||||
U.S. Treasury Bonds |
||||||||||||
4.875% due 08/15/2045 (q) |
380 |
377 |
||||||||||
U.S. Treasury Notes |
||||||||||||
4.125% due 02/15/2036 |
480 |
469 |
||||||||||
Total U.S. Treasury Obligations (Cost $867) |
846 |
|||||||||||
NON-AGENCY MORTGAGE-BACKED SECURITIES 8.7% |
||||||||||||
Atrium Hotel Portfolio Trust |
||||||||||||
5.423% due 12/15/2036 •(n) |
1,700 |
1,679 |
||||||||||
5.873% due 12/15/2036 •(n) |
3,200 |
3,130 |
||||||||||
Banc of America Funding Corp. |
||||||||||||
6.000% due 01/25/2037 (n) |
1,835 |
1,657 |
||||||||||
Banc of America Funding Trust |
||||||||||||
4.727% due 01/20/2047 ~ |
247 |
217 |
||||||||||
BCAP LLC Trust |
||||||||||||
0.000% due 05/26/2037 ~ |
708 |
367 |
||||||||||
3.465% due 08/28/2037 ~ |
437 |
435 |
||||||||||
4.103% due 08/26/2037 ~(n) |
7,148 |
4,812 |
||||||||||
4.310% due 09/26/2036 ~(n) |
2,396 |
2,304 |
||||||||||
4.440% due 03/26/2037 þ |
568 |
993 |
||||||||||
4.497% due 07/26/2037 ~(n) |
3,362 |
3,116 |
||||||||||
5.750% due 12/26/2035 ~ |
1,371 |
805 |
||||||||||
6.250% due 11/26/2036 |
1,935 |
1,385 |
||||||||||
Bear Stearns ALT-A Trust |
||||||||||||
4.169% due 11/25/2035 ~ |
2,089 |
1,212 |
||||||||||
4.263% due 01/25/2036 • |
297 |
293 |
||||||||||
4.394% due 11/25/2036 ~ |
243 |
120 |
||||||||||
4.443% due 09/25/2035 ~ |
184 |
74 |
||||||||||
Bear Stearns ALT-A Trust II |
||||||||||||
4.119% due 09/25/2047 ~ |
3,388 |
1,575 |
||||||||||
CD Mortgage Trust |
||||||||||||
5.688% due 10/15/2048 |
62 |
58 |
||||||||||
Chase Mortgage Finance Trust |
||||||||||||
4.646% due 12/25/2035 ~ |
2 |
2 |
||||||||||
CHL Mortgage Pass-Through Trust |
||||||||||||
4.343% due 03/25/2035 •(n) |
1,539 |
1,443 |
||||||||||
6.000% due 07/25/2037 |
1,134 |
440 |
||||||||||
6.250% due 09/25/2036 |
322 |
102 |
||||||||||
CIM Trust |
||||||||||||
4.750% due 12/25/2065 þ |
497 |
486 |
||||||||||
Citicorp Mortgage Securities Trust |
||||||||||||
6.000% due 09/25/2037 |
162 |
166 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
CLNY Trust |
||||||||||||
6.700% due 11/15/2038 •(n) |
$ |
1,200 |
$ |
1,130 |
||||||||
Countrywide Alternative Loan Trust |
||||||||||||
5.500% due 03/25/2035 |
199 |
77 |
||||||||||
5.500% due 01/25/2036 |
239 |
128 |
||||||||||
5.750% due 01/25/2035 |
72 |
72 |
||||||||||
5.750% due 02/25/2035 |
157 |
101 |
||||||||||
5.750% due 12/25/2036 |
546 |
194 |
||||||||||
5.935% due 04/25/2036 ~ |
105 |
99 |
||||||||||
6.000% due 02/25/2035 |
205 |
167 |
||||||||||
6.000% due 04/25/2036 |
327 |
138 |
||||||||||
6.000% due 04/25/2037 |
1,166 |
475 |
||||||||||
6.250% due 11/25/2036 |
358 |
257 |
||||||||||
6.250% due 12/25/2036 • |
397 |
153 |
||||||||||
6.500% due 08/25/2036 |
367 |
102 |
||||||||||
Countrywide Alternative Loan Trust Resecuritization |
||||||||||||
6.000% due 05/25/2036 |
1,309 |
681 |
||||||||||
6.000% due 08/25/2037 ~ |
688 |
334 |
||||||||||
CSFB Mortgage-Backed Pass-Through Certificates |
||||||||||||
6.000% due 11/25/2035 |
198 |
146 |
||||||||||
CSMC Mortgage-Backed Trust |
||||||||||||
5.750% due 04/25/2036 |
90 |
40 |
||||||||||
CSMC Trust |
||||||||||||
8.044% due 07/15/2032 •(n) |
5,379 |
5,279 |
||||||||||
CSMC Trust Capital Certificates |
||||||||||||
4.769% due 10/26/2036 ~(n) |
3,641 |
3,131 |
||||||||||
First Horizon Mortgage Pass-Through Trust |
||||||||||||
0.000% due 11/25/2035 ~ |
1 |
0 |
||||||||||
4.804% due 05/25/2037 ~ |
122 |
47 |
||||||||||
Hilton USA Trust |
||||||||||||
2.828% due 11/05/2035 (n) |
800 |
667 |
||||||||||
IndyMac IMSC Mortgage Loan Trust |
||||||||||||
6.500% due 07/25/2037 |
3,471 |
1,008 |
||||||||||
JP Morgan Alternative Loan Trust |
||||||||||||
3.938% due 05/25/2036 ~ |
646 |
330 |
||||||||||
4.162% due 03/25/2037 ~ |
395 |
356 |
||||||||||
4.332% due 03/25/2036 ~(n) |
586 |
426 |
||||||||||
JP Morgan Chase Commercial Mortgage Securities Trust |
||||||||||||
5.102% due 07/05/2033 •(n) |
2,275 |
1,972 |
||||||||||
7.923% due 02/15/2035 •(n) |
3,538 |
3,076 |
||||||||||
JP Morgan Mortgage Trust |
||||||||||||
5.293% due 02/25/2036 ~ |
99 |
62 |
||||||||||
5.496% due 10/25/2035 ~ |
26 |
24 |
||||||||||
6.500% due 09/25/2035 |
30 |
18 |
||||||||||
Lehman Mortgage Trust |
||||||||||||
6.000% due 07/25/2037 |
9 |
8 |
||||||||||
6.500% due 09/25/2037 |
1,741 |
589 |
||||||||||
Lehman XS Trust |
||||||||||||
4.203% due 06/25/2047 • |
594 |
575 |
||||||||||
MASTR Asset Securitization Trust |
||||||||||||
6.500% due 11/25/2037 |
323 |
52 |
||||||||||
Merrill Lynch Mortgage Investors Trust |
||||||||||||
4.244% due 03/25/2036 ~ |
764 |
338 |
||||||||||
Nomura Asset Acceptance Corp. Alternative Loan Trust |
||||||||||||
5.476% due 05/25/2035 þ |
5 |
3 |
||||||||||
PRPM LLC |
||||||||||||
5.503% due 08/25/2030 þ(n) |
693 |
691 |
||||||||||
RALI Trust |
||||||||||||
3.909% due 12/26/2034 ~ |
469 |
149 |
||||||||||
6.000% due 08/25/2036 |
100 |
87 |
||||||||||
Residential Asset Securitization Trust |
||||||||||||
5.750% due 02/25/2036 |
777 |
254 |
||||||||||
6.000% due 07/25/2037 |
1,302 |
446 |
||||||||||
6.250% due 09/25/2037 |
2,485 |
823 |
||||||||||
RFMSI Trust |
||||||||||||
4.748% due 09/25/2035 ~ |
402 |
329 |
||||||||||
STARM Mortgage Loan Trust |
||||||||||||
5.644% due 02/25/2037 ~ |
50 |
42 |
||||||||||
Structured Adjustable Rate Mortgage Loan Trust |
||||||||||||
4.199% due 01/25/2036 ~ |
1,065 |
558 |
||||||||||
4.997% due 11/25/2036 ~(n) |
779 |
593 |
||||||||||
WaMu Mortgage Pass-Through Certificates Trust |
||||||||||||
3.236% due 10/25/2036 ~ |
213 |
188 |
||||||||||
3.781% due 05/25/2037 ~ |
347 |
314 |
||||||||||
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 93 |
Schedule of Investments |
PIMCO Income Strategy Fund II |
(Cont.) |
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
3.994% due 02/25/2037 ~ |
$ |
195 |
$ |
171 |
||||||||
4.590% due 07/25/2037 ~ |
347 |
324 |
||||||||||
Worldwide Plaza Trust |
||||||||||||
3.526% due 11/10/2036 (n) |
1,622 |
1,338 |
||||||||||
WSTN Trust |
||||||||||||
7.958% due 07/05/2037 ~(n) |
1,400 |
1,413 |
||||||||||
8.748% due 07/05/2037 ~(n) |
1,400 |
1,402 |
||||||||||
10.174% due 07/05/2037 ~(n) |
1,100 |
1,104 |
||||||||||
Total Non-Agency Mortgage-Backed Securities (Cost $68,999) |
59,352 |
|||||||||||
ASSET-BACKED SECURITIES 5.2% |
||||||||||||
AUTOMOBILE ABS OTHER 0.2% |
||||||||||||
Ally Bank Auto Credit-Linked Notes |
||||||||||||
6.066% due 06/15/2033 |
910 |
909 |
||||||||||
10.219% due 06/15/2033 |
715 |
715 |
||||||||||
1,624 |
||||||||||||
HOME EQUITY OTHER 1.9% |
||||||||||||
Argent Securities Trust |
||||||||||||
4.143% due 03/25/2036 •(n) |
2,785 |
1,574 |
||||||||||
Bear Stearns Asset-Backed Securities I Trust |
||||||||||||
4.043% due 10/25/2036 • |
833 |
828 |
||||||||||
Citigroup Mortgage Loan Trust, Inc. |
||||||||||||
4.063% due 12/25/2036 •(n) |
10,002 |
3,670 |
||||||||||
4.083% due 12/25/2036 • |
1,122 |
627 |
||||||||||
Fremont Home Loan Trust |
||||||||||||
4.063% due 01/25/2037 •(n) |
9,922 |
4,501 |
||||||||||
Home Equity Mortgage Loan Asset-Backed Trust |
||||||||||||
4.083% due 07/25/2037 •(n) |
2,039 |
1,125 |
||||||||||
Merrill Lynch Mortgage Investors Trust |
||||||||||||
4.083% due 04/25/2037 • |
301 |
121 |
||||||||||
Morgan Stanley Mortgage Loan Trust |
||||||||||||
6.250% due 02/25/2037 ~ |
343 |
193 |
||||||||||
12,639 |
||||||||||||
WHOLE LOAN COLLATERAL 0.6% |
||||||||||||
Bear Stearns Asset-Backed Securities Trust |
||||||||||||
6.500% due 10/25/2036 |
343 |
107 |
||||||||||
Pretium Mortgage Credit Partners LLC |
||||||||||||
5.184% due 11/25/2055 þ |
817 |
809 |
||||||||||
5.193% due 10/25/2055 þ(n) |
1,387 |
1,389 |
||||||||||
5.510% due 04/25/2056 þ |
983 |
981 |
||||||||||
RCO X Mortgage LLC |
||||||||||||
5.418% due 10/25/2030 þ |
500 |
498 |
||||||||||
3,784 |
||||||||||||
OTHER ABS 2.5% |
||||||||||||
Adagio VI CLO DAC |
||||||||||||
0.000% due 04/30/2031 «~ |
EUR |
1,343 |
0 |
|||||||||
Apidos CLO XXVIII |
||||||||||||
0.000% due 10/20/2038 ~ |
$ |
5,183 |
1,347 |
|||||||||
Avoca CLO XX DAC |
||||||||||||
0.000% due 07/15/2032 ~ |
EUR |
2,230 |
1,425 |
|||||||||
Belle Haven ABS CDO Ltd. |
||||||||||||
7.000% due 07/05/2046 • |
$ |
180,259 |
376 |
|||||||||
CIFC Funding Ltd. |
||||||||||||
0.000% due 04/24/2030 ~ |
2,400 |
237 |
||||||||||
0.000% due 03/31/2038 ~ |
1,221 |
552 |
||||||||||
Cork Street CLO DAC |
||||||||||||
0.000% due 11/27/2028 «~ |
EUR |
621 |
42 |
|||||||||
KKR CLO 30 Ltd. |
||||||||||||
0.000% due 04/17/2037 ~ |
$ |
3,000 |
988 |
|||||||||
Magnetite VII Ltd. |
||||||||||||
0.000% due 01/15/2028 ~ |
5,650 |
265 |
||||||||||
Marlette Funding Trust |
||||||||||||
0.000% due 09/17/2029 «(g) |
7 |
0 |
||||||||||
0.000% due 03/15/2030 «(g) |
6 |
0 |
||||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
SLM Student Loan EDC Repackaging Trust |
||||||||||||
0.000% due 10/28/2029 «(g) |
$ |
1 |
$ |
404 |
||||||||
SLM Student Loan Trust |
||||||||||||
0.000% due 01/25/2042 «(g) |
4 |
731 |
||||||||||
SMB Private Education Loan Trust |
||||||||||||
0.000% due 09/18/2046 «(g) |
1 |
331 |
||||||||||
0.000% due 10/15/2048 «(g) |
1 |
246 |
||||||||||
Taberna Preferred Funding V Ltd. |
||||||||||||
4.300% due 08/05/2036 • |
2,972 |
2,808 |
||||||||||
Taberna Preferred Funding VI Ltd. |
||||||||||||
4.280% due 12/05/2036 • |
2,816 |
2,619 |
||||||||||
THL Credit Wind River CLO Ltd. |
||||||||||||
4.873% due 04/15/2035 •(n) |
5,000 |
5,005 |
||||||||||
17,376 |
||||||||||||
Total Asset-Backed Securities (Cost $73,595) |
35,423 |
|||||||||||
SOVEREIGN ISSUES 11.4% |
||||||||||||
Angola Government International Bonds |
||||||||||||
8.000% due 11/26/2029 |
620 |
631 |
||||||||||
9.375% due 03/31/2033 |
1,800 |
1,844 |
||||||||||
Argentina Bonar Bonds |
||||||||||||
0.750% due 07/09/2030 þ |
3,626 |
2,253 |
||||||||||
Argentina Republic Government International Bonds |
||||||||||||
1.000% due 07/09/2029 |
478 |
436 |
||||||||||
3.500% due 07/09/2041 þ(n) |
1,792 |
1,344 |
||||||||||
4.125% due 07/09/2046 þ |
107 |
82 |
||||||||||
5.000% due 01/09/2038 þ(n) |
11,605 |
9,713 |
||||||||||
Avenir Issuer IV Ireland DAC |
||||||||||||
6.000% due 10/25/2027 |
535 |
529 |
||||||||||
Brazil Government International Bonds |
||||||||||||
4.875% due 04/23/2033 (n) |
EUR |
500 |
574 |
|||||||||
Colombia TES |
||||||||||||
1.000% due 08/22/2029 |
COP |
300,900 |
85 |
|||||||||
1.000% due 03/26/2031 |
185,000 |
45 |
||||||||||
6.500% due 01/22/2031 (i) |
41,473 |
12 |
||||||||||
7.000% due 06/30/2032 |
176,500 |
41 |
||||||||||
7.250% due 10/18/2034 |
170,900 |
38 |
||||||||||
9.250% due 05/28/2042 |
124,300 |
30 |
||||||||||
11.000% due 08/22/2029 |
2,322,000 |
659 |
||||||||||
11.500% due 07/25/2046 |
677,900 |
192 |
||||||||||
11.750% due 01/24/2035 |
64,847,500 |
18,635 |
||||||||||
12.000% due 03/13/2058 |
2,000,600 |
579 |
||||||||||
12.500% due 02/27/2030 |
25,135,600 |
7,401 |
||||||||||
12.750% due 11/28/2040 |
2,179,600 |
665 |
||||||||||
13.250% due 02/09/2033 |
1,058,700 |
327 |
||||||||||
Development Bank of Kazakhstan JSC |
||||||||||||
18.400% due 10/16/2028 |
KZT |
251,100 |
547 |
|||||||||
Dominican Republic International Bonds |
||||||||||||
10.500% due 03/15/2037 (n) |
DOP |
319,700 |
5,696 |
|||||||||
10.750% due 06/01/2036 (n) |
32,800 |
593 |
||||||||||
DRC International Bonds |
||||||||||||
8.750% due 04/16/2032 |
$ |
900 |
933 |
|||||||||
9.500% due 04/16/2037 |
200 |
210 |
||||||||||
Egypt Government Bonds |
||||||||||||
19.698% due 10/14/2030 |
EGP |
616,900 |
11,969 |
|||||||||
Ghana Government International Bonds |
||||||||||||
0.000% due 07/03/2026 (g) |
$ |
10 |
10 |
|||||||||
0.000% due 01/03/2030 (g)(n) |
56 |
50 |
||||||||||
5.000% due 07/03/2029 þ |
275 |
272 |
||||||||||
Qatar Government International Bonds |
||||||||||||
4.800% due 04/08/2033 (n) |
1,300 |
1,307 |
||||||||||
Republic of Kenya Government International Bonds |
||||||||||||
7.875% due 02/26/2034 (n) |
800 |
797 |
||||||||||
Romania Government International Bonds |
||||||||||||
5.875% due 07/11/2032 (n) |
EUR |
3,000 |
3,595 |
|||||||||
Turkiye Government Bonds |
||||||||||||
40.305% (BISTREFI + 0.000%) due 09/06/2028 ~(n) |
TRY |
163,600 |
3,526 |
|||||||||
40.760% (BISTREFI + 0.000%) due 08/19/2026 ~ |
200 |
4 |
||||||||||
40.760% (BISTREFI + 0.000%) due 05/17/2028 ~(n) |
32,800 |
710 |
||||||||||
Ukraine Government International Bonds |
||||||||||||
0.000% due 02/01/2030 þ(h) |
$ |
33 |
24 |
|||||||||
PRINCIPAL AMOUNT (000S) |
MARKET VALUE (000S) |
|||||||||||
0.000% due 02/01/2034 þ(h) |
$ |
122 |
$ |
69 |
||||||||
0.000% due 02/01/2035 þ(h) |
103 |
62 |
||||||||||
0.000% due 02/01/2036 þ(h) |
86 |
52 |
||||||||||
4.500% due 02/01/2034 þ |
150 |
106 |
||||||||||
4.500% due 02/01/2035 þ |
210 |
146 |
||||||||||
4.500% due 02/01/2036 þ |
240 |
164 |
||||||||||
Venezuela Government International Bonds |
||||||||||||
9.250% due 09/15/2027 ^(d) |
1,215 |
600 |
||||||||||
9.250% due 05/07/2028 ^(d) |
700 |
338 |
||||||||||
11.950% due 08/05/2031 ^(d) |
400 |
218 |
||||||||||
Total Sovereign Issues (Cost $72,270) |
78,113 |
|||||||||||
SHARES |
||||||||||||
COMMON STOCKS 6.4% |
||||||||||||
COMMUNICATION SERVICES 1.1% |
||||||||||||
Clear Channel Outdoor Holdings, Inc. (e) |
549,096 |
1,329 |
||||||||||
iHeartMedia, Inc. Class A (e) |
114,455 |
491 |
||||||||||
iHeartMedia, Inc. Class B «(e) |
100,822 |
372 |
||||||||||
Promotora de Informaciones SA Class A (e) |
258,261 |
90 |
||||||||||
SES SA «(e) |
233,715 |
3,535 |
||||||||||
Uniti Group, Inc. (e) |
122,600 |
1,406 |
||||||||||
7,223 |
||||||||||||
CONSUMER DISCRETIONARY 0.0% |
||||||||||||
Steinhoff International Holdings NV «(e)(m) |
24,971,388 |
0 |
||||||||||
West Marine «(e)(m) |
2,750 |
18 |
||||||||||
18 |
||||||||||||
FINANCIALS 3.0% |
||||||||||||
Banca Monte dei Paschi di Siena SpA |
1,043,000 |
12,962 |
||||||||||
Windstream Servcies LLC (e) |
678,188 |
7,779 |
||||||||||
XBP Global Holdings, Inc. (e) |
681 |
1 |
||||||||||
20,742 |
||||||||||||
INDUSTRIALS 2.2% |
||||||||||||
Drillco Holdings Luxembourg SA «(m) |
66,318 |
1,520 |
||||||||||
Foresea Holdings SA « |
27,587 |
632 |
||||||||||
Incora Intermediate II LLC «(e)(m) |
308,198 |
12,148 |
||||||||||
Westmoreland Mining Holdings «(e)(m) |
52,802 |
35 |
||||||||||
Westmoreland Mining LLC «(e)(m) |
289,506 |
760 |
||||||||||
15,095 |
||||||||||||
INFORMATION TECHNOLOGY 0.1% |
||||||||||||
NVIDIA Corp. |
3,428 |
686 |
||||||||||
REAL ESTATE 0.0% |
||||||||||||
MNSN Holdings, Inc. (e)(m) |
3,425 |
288 |
||||||||||
Total Common Stocks (Cost $33,930) |
44,052 |
|||||||||||
WARRANTS 0.2% |
||||||||||||
COMMUNICATION SERVICES 0.2% |
||||||||||||
Windstream Holdings II LLC - Exp. 08/01/2035 « |
132,115 |
1,514 |
||||||||||
CONSUMER DISCRETIONARY 0.0% |
||||||||||||
West Marine - Exp. 09/08/2028 « |
357 |
0 |
||||||||||
Total Warrants (Cost $805) |
1,514 |
|||||||||||
94 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
SHARES |
MARKET VALUE (000S) |
|||||||||||
PREFERRED SECURITIES 2.4% |
||||||||||||
BANKING & FINANCE 1.7% |
||||||||||||
ADLER Group SA « |
1,253,950 |
$ |
0 |
|||||||||
AGFC Capital Trust I |
||||||||||||
5.685% due 01/15/2067 (n) |
1,800,000 |
1,125 |
||||||||||
Brighthouse Holdings LLC |
||||||||||||
6.500% due 07/27/2037 þ(j) |
70,000 |
60 |
||||||||||
WAFC Voussoir « |
5,699,280 |
5,699 |
||||||||||
Windstream Holdings II LLC |
||||||||||||
11.000% « |
4,326 |
4,823 |
||||||||||
11,707 |
||||||||||||
INDUSTRIALS 0.7% |
||||||||||||
Clover Holdings, Inc. |
||||||||||||
0.000% «(m) |
13,544 |
259 |
||||||||||
SVB Financial Trust |
||||||||||||
0.000% due 11/07/2032 (g) |
19,120 |
2 |
||||||||||
11.000% due 11/07/2032 |
3,903 |
1,795 |
||||||||||
Syniverse Holdings, Inc. |
||||||||||||
12.500% «(m) |
3,254,621 |
2,371 |
||||||||||
Venture Global LNG, Inc. |
||||||||||||
9.000% due 09/30/2029 (j)(n) |
460,000 |
449 |
||||||||||
4,876 |
||||||||||||
Total Preferred Securities (Cost $17,240) |
16,583 |
|||||||||||
REAL ESTATE INVESTMENT TRUSTS 0.3% |
||||||||||||
REAL ESTATE 0.3% |
||||||||||||
VICI Properties, Inc. |
89,142 |
2,367 |
||||||||||
Total Real Estate Investment Trusts (Cost $547) |
2,367 |
|||||||||||
SHARES |
MARKET VALUE (000S) |
|||||||||||
SHORT-TERM INSTRUMENTS 2.9% |
||||||||||||
MUTUAL FUNDS 0.0% |
||||||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class 3.690% |
213,211 |
$ |
213 |
|||||||||
PRINCIPAL AMOUNT (000S) |
||||||||||||
EGYPT TREASURY BILLS 0.2% |
||||||||||||
23.927% due 09/15/2026 - 10/20/2026 (f)(g) |
EGP |
71,700 |
1,371 |
|||||||||
NIGERIA TREASURY BILLS 2.2% |
||||||||||||
20.606% due 01/14/2027 - 01/28/2027 (f)(g) |
NGN |
23,617,600 |
15,321 |
|||||||||
U.S. TREASURY BILLS 0.5% |
||||||||||||
3.685% due 07/21/2026 - 08/25/2026 (f)(g)(q) |
$ |
3,170 |
3,160 |
|||||||||
Total Short-Term Instruments (Cost $19,965) |
20,065 |
|||||||||||
Total Investments in Securities (Cost $955,827) |
866,097 |
|||||||||||
SHARES |
MARKET VALUE (000S) |
|||||||||||
INVESTMENTS IN AFFILIATES 8.4% |
||||||||||||
SHORT-TERM INSTRUMENTS 8.4% |
||||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 8.4% |
||||||||||||
PIMCO Short-Term Floating NAV Portfolio III |
5,902,467 |
$ |
57,496 |
|||||||||
Total Short-Term Instruments (Cost $57,490) |
57,496 |
|||||||||||
Total Investments in Affiliates (Cost $57,490) |
57,496 |
|||||||||||
Total Investments 134.7% (Cost $1,013,317) |
$ |
923,593 |
||||||||||
Financial Derivative Instruments (o)(p) (0.3)% (Cost or Premiums, net $(15,822)) |
(1,976 |
) | ||||||||||
Other Assets and Liabilities, net (34.4)% |
(235,905 |
) | ||||||||||
Net Assets Applicable to Common Shareholders 100.0% |
$ |
685,712 |
||||||||||
NOTES TO SCHEDULE OF INVESTMENTS:
* |
A zero balance may reflect actual amounts rounding to less than one thousand. |
^ |
Security is in default. |
« |
Security valued using significant unobservable inputs (Level 3). |
µ |
All or a portion of this amount represents unfunded loan commitments. The interest rate for the unfunded portion will be determined at the time of funding. See Note 4, Securities and Other Investments, in the Notes to Financial Statements for more information regarding unfunded loan commitments. |
~ |
Variable or Floating rate security. Rate shown is the rate in effect as of period end. Certain variable rate securities are not based on a published reference rate and spread, rather are determined by the issuer or agent and are based on current market conditions. Reference rate is as of reset date, which may vary by security. These securities may not indicate a reference rate and/or spread in their description. |
• |
Rate shown is the rate in effect as of period end. The rate may be based on a fixed rate, a capped rate or a floor rate and may convert to a variable or floating rate in the future. These securities do not indicate a reference rate and spread in their description. |
þ |
Coupon represents a rate which changes periodically based on a predetermined schedule or event. Rate shown is the rate in effect as of period end. |
(a) |
Security is an Interest Only (“IO”) or IO Strip. |
(b) |
When-issued security. |
(c) |
Payment in-kind security. |
(d) |
Security is not accruing income as of the date of this report. |
(e) |
Security did not produce income within the last twelve months. |
(f) |
Coupon represents a weighted average yield to maturity. |
(g) |
Zero coupon security. |
(h) |
Security becomes interest bearing at a future date. |
(i) |
Principal amount of security is adjusted for inflation. |
(j) |
Perpetual maturity; date shown, if applicable, represents next contractual call date. |
(k) |
Contingent convertible security. |
(l) |
Coupon represents a 7-Day Yield. |
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 95 |
Schedule of Investments |
PIMCO Income Strategy Fund II |
(Cont.) |
(m) RESTRICTED SECURITIES:
Issuer Description |
Acquisition Date |
Cost |
Market Value |
Market Value as Percentage of Net Assets |
||||||||||||||||||||
Clover Holdings, Inc. |
12/09/2024 |
$ |
203 |
$ |
259 |
0.04 |
% | |||||||||||||||||
Drillco Holdings Luxembourg SA |
06/08/2023 |
1,326 |
1,520 |
0.22 |
||||||||||||||||||||
Incora Intermediate II LLC |
01/31/2025 |
14,971 |
12,148 |
1.77 |
||||||||||||||||||||
Incora Top Holdco LLC6.000% due 01/30/2033 |
01/31/2025 - 05/01/2026 |
7,124 |
11,229 |
1.64 |
||||||||||||||||||||
MNSN Holdings, Inc. |
03/16/2023 - 03/29/2023 |
38 |
288 |
0.04 |
||||||||||||||||||||
Steinhoff International Holdings NV |
06/30/2023 - 10/30/2023 |
0 |
0 |
0.00 |
||||||||||||||||||||
Syniverse Holdings, Inc. 12.500% |
05/12/2022 - 05/31/2026 |
3,215 |
2,371 |
0.35 |
||||||||||||||||||||
West Marine |
09/12/2023 |
40 |
18 |
0.00 |
||||||||||||||||||||
Westmoreland Mining Holdings |
12/08/2014 - 10/19/2016 |
1,522 |
35 |
0.01 |
||||||||||||||||||||
Westmoreland Mining LLC |
06/30/2023 - 05/14/2026 |
938 |
760 |
0.11 |
||||||||||||||||||||
$ |
29,377 |
$ |
28,628 |
4.17 |
% | |||||||||||||||||||
BORROWINGS AND OTHER FINANCING TRANSACTIONS
REVERSE REPURCHASE AGREEMENTS:
Counterparty |
Borrowing Rate (1) |
Settlement Date |
Maturity Date |
Amount Borrowed (1) |
Payable for Reverse Repurchase Agreements |
|||||||||||||||||
BOS |
3.850 |
% |
06/18/2026 |
07/20/2026 |
$ |
(195 |
) |
$ |
(196 |
) | ||||||||||||
3.950 |
06/04/2026 |
07/06/2026 |
(531 |
) |
(533 |
) | ||||||||||||||||
3.990 |
05/05/2026 |
07/02/2026 |
(3,686 |
) |
(3,709 |
) | ||||||||||||||||
4.000 |
06/04/2026 |
07/06/2026 |
(229 |
) |
(229 |
) | ||||||||||||||||
BPS |
(0.250 |
) |
06/17/2026 |
TBD |
(2) |
EUR |
(176 |
) |
(201 |
) | ||||||||||||
2.520 |
06/17/2026 |
TBD |
(2) |
(284 |
) |
(325 |
) | |||||||||||||||
2.586 |
06/12/2026 |
08/12/2026 |
(9,768 |
) |
(11,176 |
) | ||||||||||||||||
4.000 |
07/02/2026 |
09/04/2026 |
$ |
(3,537 |
) |
(3,537 |
) | |||||||||||||||
4.040 |
05/04/2026 |
07/02/2026 |
(3,723 |
) |
(3,747 |
) | ||||||||||||||||
4.050 |
01/29/2026 |
TBD |
(2) |
GBP |
(1,038 |
) |
(1,400 |
) | ||||||||||||||
4.190 |
06/12/2026 |
08/12/2026 |
$ |
(4,512 |
) |
(4,522 |
) | |||||||||||||||
4.190 |
06/30/2026 |
08/12/2026 |
(1,015 |
) |
(1,015 |
) | ||||||||||||||||
4.190 |
07/01/2026 |
08/12/2026 |
(1,557 |
) |
(1,557 |
) | ||||||||||||||||
4.270 |
06/26/2026 |
09/28/2026 |
GBP |
(1,832 |
) |
(2,431 |
) | |||||||||||||||
-BRC |
1.650 |
06/17/2026 |
TBD |
(2) |
EUR |
(2,536 |
) |
(2,900 |
) | |||||||||||||
1.750 |
06/17/2026 |
TBD |
(2) |
(264 |
) |
(302 |
) | |||||||||||||||
1.800 |
06/17/2026 |
TBD |
(2) |
(160 |
) |
(183 |
) | |||||||||||||||
2.450 |
06/17/2026 |
07/01/2026 |
(369 |
) |
(422 |
) | ||||||||||||||||
2.450 |
06/17/2026 |
07/02/2026 |
(650 |
) |
(743 |
) | ||||||||||||||||
2.500 |
06/17/2026 |
TBD |
(2) |
(2,095 |
) |
(2,396 |
) | |||||||||||||||
2.520 |
06/30/2026 |
09/28/2026 |
(9,450 |
) |
(10,799 |
) | ||||||||||||||||
3.580 |
03/05/2026 |
TBD |
(2) |
$ |
(1,183 |
) |
(1,196 |
) | ||||||||||||||
4.700 |
06/17/2026 |
10/15/2026 |
(1,045 |
) |
(1,046 |
) | ||||||||||||||||
4.770 |
05/27/2026 |
09/24/2026 |
(15,415 |
) |
(15,485 |
) | ||||||||||||||||
BYR |
3.850 |
12/12/2025 |
TBD |
(2) |
(391 |
) |
(399 |
) | ||||||||||||||
3.970 |
06/26/2026 |
08/03/2026 |
(5,340 |
) |
(5,343 |
) | ||||||||||||||||
4.120 |
04/21/2026 |
07/21/2026 |
(1,199 |
) |
(1,209 |
) | ||||||||||||||||
4.120 |
04/23/2026 |
07/23/2026 |
(397 |
) |
(401 |
) | ||||||||||||||||
4.120 |
05/27/2026 |
08/27/2026 |
(4,600 |
) |
(4,619 |
) | ||||||||||||||||
4.120 |
06/16/2026 |
08/17/2026 |
(1,857 |
) |
(1,860 |
) | ||||||||||||||||
4.170 |
06/15/2026 |
08/14/2026 |
(13,950 |
) |
(13,976 |
) | ||||||||||||||||
CDC |
4.020 |
05/13/2026 |
09/09/2026 |
(5,659 |
) |
(5,690 |
) | |||||||||||||||
4.020 |
06/22/2026 |
10/20/2026 |
(438 |
) |
(438 |
) | ||||||||||||||||
4.070 |
04/28/2026 |
07/28/2026 |
(1,047 |
) |
(1,054 |
) | ||||||||||||||||
4.120 |
06/22/2026 |
10/20/2026 |
(411 |
) |
(411 |
) | ||||||||||||||||
4.120 |
06/25/2026 |
07/02/2026 |
(655 |
) |
(655 |
) | ||||||||||||||||
4.120 |
06/30/2026 |
07/02/2026 |
(935 |
) |
(935 |
) | ||||||||||||||||
4.120 |
06/30/2026 |
09/30/2026 |
(1,194 |
) |
(1,194 |
) | ||||||||||||||||
4.130 |
06/01/2026 |
09/01/2026 |
(802 |
) |
(805 |
) | ||||||||||||||||
4.130 |
06/02/2026 |
07/02/2026 |
(2,154 |
) |
(2,161 |
) | ||||||||||||||||
4.130 |
06/11/2026 |
09/01/2026 |
(910 |
) |
(912 |
) | ||||||||||||||||
4.130 |
06/17/2026 |
09/01/2026 |
(2,889 |
) |
(2,893 |
) | ||||||||||||||||
4.130 |
06/30/2026 |
09/01/2026 |
(938 |
) |
(938 |
) | ||||||||||||||||
4.170 |
04/28/2026 |
07/28/2026 |
(1,864 |
) |
(1,878 |
) | ||||||||||||||||
4.170 |
05/26/2026 |
07/28/2026 |
(2,805 |
) |
(2,817 |
) | ||||||||||||||||
4.170 |
06/25/2026 |
07/28/2026 |
(257 |
) |
(257 |
) | ||||||||||||||||
4.180 |
04/06/2026 |
07/07/2026 |
(910 |
) |
(919 |
) | ||||||||||||||||
96 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
Counterparty |
Borrowing Rate (1) |
Settlement Date |
Maturity Date |
Amount Borrowed (1) |
Payable for Reverse Repurchase Agreements |
|||||||||||||||||
DBL |
4.195 |
% |
06/26/2026 |
09/25/2026 |
$ |
(1,515 |
) |
$ |
(1,516 |
) | ||||||||||||
4.266 |
05/29/2026 |
08/28/2026 |
(3,463 |
) |
(3,476 |
) | ||||||||||||||||
4.316 |
05/29/2026 |
08/28/2026 |
(4,077 |
) |
(4,093 |
) | ||||||||||||||||
4.366 |
05/29/2026 |
08/28/2026 |
(7,603 |
) |
(7,634 |
) | ||||||||||||||||
4.395 |
06/26/2026 |
09/25/2026 |
(1,200 |
) |
(1,201 |
) | ||||||||||||||||
4.466 |
05/29/2026 |
08/28/2026 |
(901 |
) |
(905 |
) | ||||||||||||||||
4.516 |
05/29/2026 |
08/28/2026 |
(527 |
) |
(529 |
) | ||||||||||||||||
IND |
4.130 |
04/15/2026 |
07/15/2026 |
(640 |
) |
(646 |
) | |||||||||||||||
4.130 |
06/04/2026 |
09/04/2026 |
(3,150 |
) |
(3,160 |
) | ||||||||||||||||
4.130 |
06/16/2026 |
09/16/2026 |
(378 |
) |
(379 |
) | ||||||||||||||||
4.430 |
06/26/2026 |
09/28/2026 |
(1,130 |
) |
(1,131 |
) | ||||||||||||||||
JML |
1.250 |
06/17/2026 |
TBD |
(2) |
EUR |
(196 |
) |
(224 |
) | |||||||||||||
JPS |
4.220 |
05/14/2026 |
11/16/2026 |
$ |
(1,383 |
) |
(1,391 |
) | ||||||||||||||
MEI |
4.100 |
06/18/2026 |
07/20/2026 |
(181 |
) |
(181 |
) | |||||||||||||||
4.100 |
06/30/2026 |
TBD |
(2) |
(182 |
) |
(182 |
) | |||||||||||||||
MYI |
2.150 |
06/23/2026 |
07/08/2026 |
(504 |
) |
(504 |
) | |||||||||||||||
RTA |
4.145 |
04/17/2026 |
10/19/2026 |
(405 |
) |
(408 |
) | |||||||||||||||
4.145 |
05/20/2026 |
11/20/2026 |
(2,816 |
) |
(2,830 |
) | ||||||||||||||||
4.145 |
06/02/2026 |
11/30/2026 |
(242 |
) |
(243 |
) | ||||||||||||||||
4.420 |
06/04/2026 |
12/04/2026 |
(5,275 |
) |
(5,293 |
) | ||||||||||||||||
4.420 |
06/05/2026 |
08/04/2026 |
(597 |
) |
(599 |
) | ||||||||||||||||
4.470 |
06/05/2026 |
08/04/2026 |
(1,047 |
) |
(1,050 |
) | ||||||||||||||||
4.470 |
06/29/2026 |
10/26/2026 |
(857 |
) |
(857 |
) | ||||||||||||||||
SCX |
4.050 |
12/12/2025 |
TBD |
(2) |
(8,325 |
) |
(8,513 |
) | ||||||||||||||
4.050 |
02/17/2026 |
TBD |
(2) |
(4,181 |
) |
(4,244 |
) | |||||||||||||||
4.050 |
04/16/2026 |
TBD |
(2) |
(40 |
) |
(41 |
) | |||||||||||||||
4.100 |
03/18/2026 |
TBD |
(2) |
(513 |
) |
(519 |
) | |||||||||||||||
4.100 |
06/03/2026 |
TBD |
(2) |
(4,930 |
) |
(4,946 |
) | |||||||||||||||
4.170 |
06/26/2026 |
08/04/2026 |
(722 |
) |
(722 |
) | ||||||||||||||||
SGY |
3.960 |
06/04/2026 |
TBD |
(2) |
(593 |
) |
(595 |
) | ||||||||||||||
SOG |
2.360 |
06/17/2026 |
TBD |
(2) |
EUR |
(637 |
) |
(728 |
) | |||||||||||||
2.370 |
06/17/2026 |
TBD |
(2) |
(2,547 |
) |
(2,913 |
) | |||||||||||||||
3.910 |
04/16/2026 |
TBD |
(2) |
$ |
(1,232 |
) |
(1,242 |
) | ||||||||||||||
3.990 |
03/10/2026 |
TBD |
(2) |
(2,141 |
) |
(2,167 |
) | |||||||||||||||
4.620 |
05/01/2026 |
10/30/2026 |
(5,841 |
) |
(5,887 |
) | ||||||||||||||||
TDM |
3.800 |
06/16/2026 |
TBD |
(2) |
(7,785 |
) |
(7,797 |
) | ||||||||||||||
3.950 |
06/16/2026 |
TBD |
(2) |
(1,257 |
) |
(1,259 |
) | |||||||||||||||
UBS |
1.700 |
07/02/2026 |
TBD |
(2) |
EUR |
(152 |
) |
(174 |
) | |||||||||||||
2.420 |
06/17/2026 |
TBD |
(2) |
(2,509 |
) |
(2,870 |
) | |||||||||||||||
2.420 |
06/18/2026 |
TBD |
(2) |
(862 |
) |
(986 |
) | |||||||||||||||
2.470 |
06/17/2026 |
TBD |
(2) |
(3,251 |
) |
(3,718 |
) | |||||||||||||||
2.470 |
06/25/2026 |
TBD |
(2) |
(1,247 |
) |
(1,426 |
) | |||||||||||||||
3.250 |
05/26/2026 |
07/08/2026 |
GBP |
(540 |
) |
(719 |
) | |||||||||||||||
3.870 |
05/13/2026 |
TBD |
(2) |
$ |
(1,372 |
) |
(1,379 |
) | ||||||||||||||
3.910 |
04/16/2026 |
TBD |
(2) |
(10 |
) |
(10 |
) | |||||||||||||||
3.950 |
12/12/2025 |
TBD |
(2) |
(4,886 |
) |
(4,994 |
) | |||||||||||||||
3.960 |
05/05/2026 |
08/04/2026 |
(1,601 |
) |
(1,611 |
) | ||||||||||||||||
3.990 |
03/10/2026 |
TBD |
(2) |
(17,015 |
) |
(17,228 |
) | |||||||||||||||
3.990 |
03/26/2026 |
TBD |
(2) |
(1,269 |
) |
(1,282 |
) | |||||||||||||||
3.990 |
06/11/2026 |
TBD |
(2) |
(5,015 |
) |
(5,025 |
) | |||||||||||||||
4.020 |
06/01/2026 |
12/11/2027 |
(6,265 |
) |
(6,281 |
) | ||||||||||||||||
4.100 |
05/04/2026 |
08/04/2026 |
(562 |
) |
(566 |
) | ||||||||||||||||
4.110 |
05/05/2026 |
07/09/2026 |
(474 |
) |
(477 |
) | ||||||||||||||||
4.110 |
05/06/2026 |
08/06/2026 |
(6,717 |
) |
(6,760 |
) | ||||||||||||||||
4.210 |
04/20/2026 |
07/22/2026 |
(10,619 |
) |
(10,708 |
) | ||||||||||||||||
4.230 |
04/16/2026 |
07/16/2026 |
(2,642 |
) |
(2,665 |
) | ||||||||||||||||
4.230 |
05/07/2026 |
07/16/2026 |
(2,285 |
) |
(2,300 |
) | ||||||||||||||||
Total Reverse Repurchase Agreements |
$ |
(272,998 |
) | |||||||||||||||||||
See Accompanying Notes |
ANNUAL REPORT |
| |
JUNE 30, 2026 |
97 |
Schedule of Investments |
PIMCO Income Strategy Fund II |
(Cont.) |
BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY
The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of June 30, 2026:
Counterparty |
Repurchase Agreement Proceeds to be Received |
Payable for Reverse Repurchase Agreements |
Payable for Sale-Buyback Transactions |
Total Borrowings and Other Financing Transactions |
Collateral Pledged/(Received) |
Net Exposure (3) |
||||||||||||||||||
Global/Master Repurchase Agreement |
||||||||||||||||||||||||
BOS |
$ |
0 |
$ |
(4,667 |
) |
$ |
0 |
$ |
(4,667 |
) |
$ |
5,174 |
$ |
507 |
||||||||||
BPS |
0 |
(29,911 |
) |
0 |
(29,911 |
) |
27,661 |
(2,250 |
) | |||||||||||||||
BRC |
0 |
(35,472 |
) |
0 |
(35,472 |
) |
44,696 |
9,224 |
||||||||||||||||
BYR |
0 |
(27,807 |
) |
0 |
(27,807 |
) |
31,312 |
3,505 |
||||||||||||||||
CDC |
0 |
(23,957 |
) |
0 |
(23,957 |
) |
26,933 |
2,976 |
||||||||||||||||
CEW |
0 |
0 |
0 |
0 |
1,434 |
1,434 |
||||||||||||||||||
DBL |
0 |
(19,354 |
) |
0 |
(19,354 |
) |
23,754 |
4,400 |
||||||||||||||||
IND |
0 |
(5,316 |
) |
0 |
(5,316 |
) |
6,803 |
1,487 |
||||||||||||||||
JML |
0 |
(224 |
) |
0 |
(224 |
) |
225 |
1 |
||||||||||||||||
JPS |
0 |
(1,391 |
) |
0 |
(1,391 |
) |
1,851 |
460 |
||||||||||||||||
MEI |
0 |
(363 |
) |
0 |
(363 |
) |
408 |
45 |
||||||||||||||||
MYI |
0 |
(504 |
) |
0 |
(504 |
) |
1,196 |
692 |
||||||||||||||||
RTA |
0 |
(11,280 |
) |
0 |
(11,280 |
) |
13,882 |
2,602 |
||||||||||||||||
SCX |
0 |
(18,985 |
) |
0 |
(18,985 |
) |
21,704 |
2,719 |
||||||||||||||||
SGY |
0 |
(595 |
) |
0 |
(595 |
) |
693 |
98 |
||||||||||||||||
SOG |
0 |
(12,937 |
) |
0 |
(12,937 |
) |
72,841 |
59,904 |
||||||||||||||||
TDM |
0 |
(9,056 |
) |
0 |
(9,056 |
) |
9,472 |
416 |
||||||||||||||||
UBS |
0 |
(71,179 |
) |
0 |
(71,179 |
) |
22,068 |
(49,111 |
) | |||||||||||||||
Total Borrowings and Other Financing Transactions |
$ |
0 |
$ |
(272,998 |
) |
$ |
0 |
|||||||||||||||||
CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS
Remaining Contractual Maturity of the Agreements
Overnight and Continuous |
Up to 30 days |
31-90 days |
Greater Than 90 days |
Total |
||||||||||||||||
Reverse Repurchase Agreements |
||||||||||||||||||||
Convertible Preferred Securities |
$ |
0 |
$ |
0 |
$ |
(11,177 |
) |
$ |
(224 |
) |
$ |
(11,401 |
) | |||||||
Corporate Bonds & Notes |
(422 |
) |
(30,867 |
) |
(63,659 |
) |
(72,026 |
) |
(166,974 |
) | ||||||||||
U.S. Government Agencies |
0 |
0 |
(9,137 |
) |
(1,391 |
) |
(10,528 |
) | ||||||||||||
Non-Agency Mortgage-Backed Securities |
0 |
(7,456 |
) |
(27,431 |
) |
(5,186 |
) |
(40,073 |
) | |||||||||||
Asset-Backed Securities |
0 |
0 |
(5,669 |
) |
(7,897 |
) |
(13,566 |
) | ||||||||||||
Sovereign Issues |
0 |
0 |
(722 |
) |
(23,146 |
) |
(23,868 |
) | ||||||||||||
Preferred Securities |
0 |
(1,320 |
) |
0 |
0 |
(1,320 |
) | |||||||||||||
Total Borrowings |
$ |
(422 |
) |
$ |
(39,643 |
) |
$ |
(117,795 |
) |
$ |
(109,870 |
) |
$ |
(267,730 |
) | |||||
Payable for reverse repurchase agreements (4) |
$ |
(267,730 |
) | |||||||||||||||||
(n) |
Securities with an aggregate market value of $311,338 and cash of $1,494 have been pledged as collateral under the terms of the above master agreements as of June 30, 2026. |
(1) |
The average amount of borrowings outstanding during the period ended June 30, 2026 was $(209,917) at a weighted average interest rate of 3.956%. Average borrowings may include reverse repurchase agreements and sale-buyback transactions, if held during the period. |
(2) |
Open maturity reverse repurchase agreement. |
(3) |
Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information. |
(4) |
Unsettled reverse repurchase agreements liability of $(5,268) is outstanding at period end. |
(o) FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED
SWAP AGREEMENTS:
CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION
(1)
Reference Entity |
Fixed Receive Rate |
Payment Frequency |
Maturity Date |
Implied Credit Spread at June 30, 2026 (2) |
Notional Amount (3) |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Market Value (4) |
Variation Margin |
|||||||||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||||||||
Venture Global LNG, Inc. |
5.000 |
% |
Quarterly |
12/20/2030 |
2.113 |
% |
$ |
700 |
$ |
21 |
$ |
59 |
$ |
80 |
$ |
1 |
$ |
0 |
||||||||||||||||||||||||
98 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
Reference Entity |
Fixed Receive Rate |
Payment Frequency |
Maturity Date |
Implied Credit Spread at June 30, 2026 (2) |
Notional Amount (3) |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Market Value (4) |
Variation Margin |
|||||||||||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||||||||||
Worldline SA/France |
5.000 |
% |
Quarterly |
12/20/2027 |
6.803 |
EUR |
300 |
$ |
(29 |
) |
$ |
21 |
$ |
(8 |
) |
$ |
1 |
$ |
0 |
|||||||||||||||||||||||||
Worldline SA/France |
5.000 |
Quarterly |
12/20/2028 |
8.139 |
100 |
(14 |
) |
7 |
(7 |
) |
0 |
0 |
||||||||||||||||||||||||||||||||
Worldline SA/France |
5.000 |
Quarterly |
12/20/2030 |
9.729 |
10,500 |
(1,704 |
) |
(79 |
) |
(1,783 |
) |
19 |
0 |
|||||||||||||||||||||||||||||||
$ |
(1,726 |
) |
$ |
8 |
$ |
(1,718 |
) |
$ |
21 |
$ |
0 |
|||||||||||||||||||||||||||||||||
INTEREST RATE SWAPS
Pay/Receive Floating Rate |
Floating Rate Index |
Fixed Rate |
Payment Frequency |
Maturity Date |
Notional Amount |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Market Value |
Variation Margin |
|||||||||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||||||||
Pay |
1-Day GBP-SONIO Compounded-OIS |
3.500 |
% |
Annual |
03/18/2031 |
GBP |
22,530 |
$ |
(99 |
) |
$ |
(636 |
) |
$ |
(735 |
) |
$ |
0 |
$ |
(31 |
) | |||||||||||||||||||||
Receive |
1-Day GBP-SONIO Compounded-OIS |
0.750 |
Annual |
09/21/2032 |
8,700 |
845 |
1,541 |
2,386 |
15 |
0 |
||||||||||||||||||||||||||||||||
Receive |
1-Day GBP-SONIO Compounded-OIS |
2.000 |
Annual |
03/15/2033 |
4,600 |
512 |
277 |
789 |
8 |
0 |
||||||||||||||||||||||||||||||||
Receive |
1-Day GBP-SONIO Compounded-OIS |
0.750 |
Annual |
09/21/2052 |
2,300 |
171 |
1,747 |
1,918 |
7 |
0 |
||||||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.350 |
Semi-Annual |
01/20/2027 |
$ |
8,100 |
(2 |
) |
143 |
141 |
2 |
0 |
||||||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
1.550 |
Semi-Annual |
01/20/2027 |
35,800 |
(84 |
) |
(467 |
) |
(551 |
) |
0 |
(7 |
) | ||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.360 |
Semi-Annual |
02/15/2027 |
5,430 |
(1 |
) |
98 |
97 |
1 |
0 |
|||||||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
1.600 |
Semi-Annual |
02/15/2027 |
21,700 |
(53 |
) |
(281 |
) |
(334 |
) |
0 |
(5 |
) | ||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.450 |
Semi-Annual |
02/17/2027 |
9,000 |
(2 |
) |
152 |
150 |
2 |
0 |
|||||||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
1.700 |
Semi-Annual |
02/17/2027 |
35,800 |
(95 |
) |
(412 |
) |
(507 |
) |
0 |
(8 |
) | ||||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
2.500 |
Semi-Annual |
12/20/2027 |
49,000 |
182 |
(1,460 |
) |
(1,278 |
) |
0 |
(29 |
) | |||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.420 |
Semi-Annual |
08/17/2028 |
29,500 |
(7 |
) |
1,699 |
1,692 |
29 |
0 |
|||||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.380 |
Semi-Annual |
08/24/2028 |
32,500 |
(8 |
) |
1,900 |
1,892 |
32 |
0 |
|||||||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
4.500 |
Annual |
06/19/2029 |
76,800 |
101 |
1,096 |
1,197 |
0 |
(112 |
) | |||||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
3.750 |
Annual |
06/20/2029 |
21,600 |
(409 |
) |
528 |
119 |
32 |
0 |
|||||||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
2.000 |
Annual |
12/21/2029 |
106,500 |
(10,975 |
) |
3,377 |
(7,598 |
) |
0 |
(188 |
) | |||||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.250 |
Annual |
06/18/2030 |
195,600 |
(1,978 |
) |
(2,806 |
) |
(4,784 |
) |
0 |
(388 |
) | ||||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.500 |
Annual |
03/18/2031 |
60,800 |
453 |
(1,551 |
) |
(1,098 |
) |
0 |
(152 |
) | |||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.160 |
Semi-Annual |
04/12/2031 |
2,800 |
(1 |
) |
386 |
385 |
7 |
0 |
|||||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
0.750 |
Semi-Annual |
06/16/2031 |
38,000 |
2,575 |
3,317 |
5,892 |
97 |
0 |
||||||||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.250 |
Annual |
06/17/2031 |
79,640 |
(1,197 |
) |
(1,187 |
) |
(2,384 |
) |
0 |
(211 |
) | ||||||||||||||||||||||||||||
Pay (5) |
1-Day USD-SOFR Compounded-OIS |
4.000 |
Annual |
07/02/2031 |
143,500 |
725 |
(141 |
) |
584 |
0 |
(390 |
) | ||||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.750 |
Semi-Annual |
12/15/2031 |
40,600 |
(568 |
) |
5,443 |
4,875 |
115 |
0 |
|||||||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.500 |
Annual |
12/20/2033 |
43,900 |
398 |
(1,733 |
) |
(1,335 |
) |
0 |
(175 |
) | |||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
3.750 |
Annual |
12/17/2035 |
8,170 |
(134 |
) |
295 |
161 |
40 |
0 |
|||||||||||||||||||||||||||||||
Receive (5) |
1-Day USD-SOFR Compounded-OIS |
4.000 |
Annual |
02/15/2036 |
17,500 |
(11 |
) |
29 |
18 |
87 |
0 |
|||||||||||||||||||||||||||||||
Pay |
1-Day USD-SOFR Compounded-OIS |
3.500 |
Semi-Annual |
06/19/2044 |
201,500 |
(5,022 |
) |
(20,189 |
) |
(25,211 |
) |
0 |
(943 |
) | ||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
3.750 |
Annual |
12/17/2045 |
5,150 |
100 |
230 |
330 |
44 |
0 |
||||||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
2.000 |
Semi-Annual |
01/15/2050 |
1,400 |
(10 |
) |
536 |
526 |
10 |
0 |
|||||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.750 |
Semi-Annual |
01/22/2050 |
21,100 |
(52 |
) |
8,784 |
8,732 |
146 |
0 |
|||||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.875 |
Semi-Annual |
02/07/2050 |
22,000 |
(85 |
) |
8,760 |
8,675 |
155 |
0 |
|||||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
2.250 |
Semi-Annual |
03/12/2050 |
6,000 |
(18 |
) |
2,033 |
2,015 |
44 |
0 |
|||||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.250 |
Semi-Annual |
12/16/2050 |
2,400 |
217 |
981 |
1,198 |
16 |
0 |
||||||||||||||||||||||||||||||||
Receive |
1-Day USD-SOFR Compounded-OIS |
1.700 |
Semi-Annual |
02/01/2052 |
187,400 |
1,316 |
80,518 |
81,834 |
834 |
0 |
||||||||||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
13.172 |
Maturity |
01/02/2031 |
BRL |
14,100 |
1 |
(58 |
) |
(57 |
) |
8 |
0 |
|||||||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
13.180 |
Maturity |
01/02/2031 |
120,000 |
(49 |
) |
(428 |
) |
(477 |
) |
68 |
0 |
|||||||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
13.330 |
Maturity |
01/02/2031 |
1,400 |
0 |
(5 |
) |
(5 |
) |
1 |
0 |
||||||||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
13.724 |
Maturity |
01/02/2031 |
55,300 |
0 |
(69 |
) |
(69 |
) |
31 |
0 |
||||||||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
13.790 |
Maturity |
01/02/2031 |
14,700 |
0 |
(14 |
) |
(14 |
) |
8 |
0 |
||||||||||||||||||||||||||||||
Pay |
1-Year BRL-CDI |
13.882 |
Maturity |
01/02/2031 |
72,000 |
0 |
(37 |
) |
(37 |
) |
40 |
0 |
||||||||||||||||||||||||||||||
Pay |
3-Month COP-IBR Compounded-OIS |
12.000 |
Annual |
06/17/2027 |
COP |
5,267,300 |
(1 |
) |
0 |
(1 |
) |
0 |
(1 |
) | ||||||||||||||||||||||||||||
Pay |
3-Month COP-IBR Compounded-OIS |
11.250 |
Quarterly |
06/17/2028 |
541,700 |
0 |
0 |
0 |
0 |
0 |
||||||||||||||||||||||||||||||||
Receive |
6-Month EUR-EURIBOR |
0.150 |
Annual |
03/18/2030 |
EUR |
8,300 |
152 |
865 |
1,017 |
8 |
0 |
|||||||||||||||||||||||||||||||
Receive |
6-Month EUR-EURIBOR |
0.250 |
Annual |
09/21/2032 |
9,600 |
903 |
719 |
1,622 |
10 |
0 |
||||||||||||||||||||||||||||||||
Receive (5) |
6-Month EUR-EURIBOR |
0.830 |
Annual |
12/09/2052 |
18,000 |
240 |
2,201 |
2,441 |
0 |
(3 |
) | |||||||||||||||||||||||||||||||
$ |
(11,970 |
) |
$ |
96,181 |
$ |
84,211 |
$ |
1,897 |
$ |
(2,643 |
) | |||||||||||||||||||||||||||||||
Total Swap Agreements |
$ |
(13,696 |
) |
$ |
96,189 |
$ |
82,493 |
$ |
1,918 |
$ |
(2,643 |
) | ||||||||||||||||||||||||||||||
FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY
The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of June 30, 2026:
Financial Derivative Assets |
Financial Derivative Liabilities |
|||||||||||||||||||||||||||||||||||
Market Value |
Variation Margin Asset |
Total |
Market Value |
Variation Margin Liability |
Total |
|||||||||||||||||||||||||||||||
Purchased Options |
Futures |
Swap Agreements |
Written Options |
Futures |
Swap Agreements |
|||||||||||||||||||||||||||||||
Total Exchange-Traded or Centrally Cleared |
$ |
0 |
$ |
0 |
$ |
1,918 |
$ |
1,918 |
$ |
0 |
$ |
0 |
$ |
(2,643) |
$ |
(2,643) |
||||||||||||||||||||
See Accompanying Notes |
ANNUAL REPORT |
| |
JUNE 30, 2026 |
99 |
Schedule of Investments |
PIMCO Income Strategy Fund II |
(Cont.) |
Cash of $24,166 has been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of June 30, 2026. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information.
(1) |
If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
(2) |
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
(3) |
The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
(4) |
The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the underlying referenced instrument’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
(5) |
This instrument has a forward starting effective date. See Note 2, Securities Transactions and Investment Income, in the Notes to Financial Statements for further information. |
(p) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
FORWARD FOREIGN CURRENCY CONTRACTS:
Counterparty |
Settlement Month |
Currency to be Delivered |
Currency to be Received |
Unrealized Appreciation/ (Depreciation) |
||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||
BOA |
07/2026 |
DOP |
41,711 |
$ |
709 |
$ |
5 |
$ |
0 |
|||||||||||||||
07/2026 |
$ |
658 |
EUR |
565 |
0 |
(12 |
) | |||||||||||||||||
08/2026 |
DOP |
21,950 |
$ |
369 |
4 |
0 |
||||||||||||||||||
08/2026 |
HKD |
2,714 |
347 |
0 |
0 |
|||||||||||||||||||
09/2026 |
COP |
16,389,077 |
4,228 |
0 |
(482 |
) | ||||||||||||||||||
09/2026 |
KZT |
7,391 |
15 |
0 |
0 |
|||||||||||||||||||
BPS |
07/2026 |
BRL |
4,571 |
883 |
0 |
(2 |
) | |||||||||||||||||
07/2026 |
EUR |
1,039 |
1,191 |
4 |
0 |
|||||||||||||||||||
07/2026 |
JPY |
747 |
5 |
0 |
0 |
|||||||||||||||||||
07/2026 |
$ |
900 |
BRL |
4,571 |
0 |
(15 |
) | |||||||||||||||||
07/2026 |
896 |
ZAR |
14,707 |
0 |
0 |
|||||||||||||||||||
08/2026 |
EUR |
1,040 |
$ |
1,187 |
0 |
(3 |
) | |||||||||||||||||
08/2026 |
$ |
780 |
BRL |
3,974 |
0 |
(16 |
) | |||||||||||||||||
09/2026 |
COP |
88,652 |
$ |
24 |
0 |
(1 |
) | |||||||||||||||||
08/2030 |
KWD |
48 |
162 |
5 |
0 |
|||||||||||||||||||
01/2031 |
1,712 |
5,768 |
170 |
0 |
||||||||||||||||||||
06/2031 |
342 |
1,152 |
31 |
0 |
||||||||||||||||||||
BRC |
07/2026 |
TRY |
339,462 |
7,129 |
0 |
(43 |
) | |||||||||||||||||
07/2026 |
$ |
6,168 |
TRY |
295,412 |
73 |
0 |
||||||||||||||||||
07/2026 |
4,472 |
ZAR |
72,635 |
0 |
(44 |
) | ||||||||||||||||||
BSH |
07/2026 |
JPY |
3,959 |
$ |
25 |
1 |
0 |
|||||||||||||||||
08/2026 |
$ |
13,077 |
BRL |
66,722 |
0 |
(251 |
) | |||||||||||||||||
09/2026 |
COP |
8,626,521 |
$ |
2,211 |
0 |
(268 |
) | |||||||||||||||||
CBK |
07/2026 |
EUR |
891 |
1,039 |
21 |
0 |
||||||||||||||||||
07/2026 |
$ |
274 |
EGP |
14,638 |
23 |
0 |
||||||||||||||||||
07/2026 |
1,260 |
EUR |
1,081 |
0 |
(25 |
) | ||||||||||||||||||
08/2026 |
COP |
42,678,244 |
$ |
11,211 |
0 |
(1,140 |
) | |||||||||||||||||
08/2026 |
EUR |
2,272 |
2,592 |
0 |
(7 |
) | ||||||||||||||||||
09/2026 |
COP |
12,950,864 |
3,411 |
0 |
(311 |
) | ||||||||||||||||||
09/2026 |
KZT |
28,665 |
57 |
0 |
(2 |
) | ||||||||||||||||||
DUB |
07/2026 |
4,073 |
9 |
0 |
0 |
|||||||||||||||||||
07/2026 |
$ |
392 |
EGP |
21,178 |
37 |
0 |
||||||||||||||||||
07/2026 |
2,086 |
ZAR |
33,776 |
0 |
(28 |
) | ||||||||||||||||||
08/2026 |
KZT |
30,987 |
$ |
64 |
0 |
0 |
||||||||||||||||||
11/2026 |
15,666 |
32 |
0 |
0 |
||||||||||||||||||||
FAR |
07/2026 |
GBP |
9,835 |
13,225 |
180 |
0 |
||||||||||||||||||
07/2026 |
$ |
2,597 |
EUR |
2,277 |
5 |
0 |
||||||||||||||||||
07/2026 |
107 |
JPY |
17,301 |
0 |
(1 |
) | ||||||||||||||||||
07/2026 |
2,916 |
ZAR |
48,117 |
17 |
0 |
|||||||||||||||||||
08/2026 |
EUR |
2,277 |
$ |
2,600 |
0 |
(5 |
) | |||||||||||||||||
08/2026 |
JPY |
17,255 |
107 |
1 |
0 |
|||||||||||||||||||
GLM |
07/2026 |
DOP |
2,805 |
47 |
0 |
0 |
||||||||||||||||||
100 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
Counterparty |
Settlement Month |
Currency to be Delivered |
Currency to be Received |
Unrealized Appreciation/ (Depreciation) |
||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||
07/2026 |
$ |
135 |
CAD |
192 |
$ |
$0 |
$ |
$0 |
||||||||||||||||
08/2026 |
CAD |
192 |
$ |
135 |
0 |
0 |
||||||||||||||||||
08/2026 |
DOP |
58,201 |
964 |
6 |
(8 |
) | ||||||||||||||||||
08/2026 |
$ |
1,269 |
BRL |
6,484 |
0 |
(22 |
) | |||||||||||||||||
09/2026 |
DOP |
120,574 |
$ |
1,979 |
5 |
(23 |
) | |||||||||||||||||
09/2026 |
$ |
1,689 |
BRL |
8,696 |
0 |
(30 |
) | |||||||||||||||||
10/2026 |
DOP |
5,122 |
$ |
86 |
2 |
0 |
||||||||||||||||||
11/2026 |
106,838 |
1,757 |
0 |
(2 |
) | |||||||||||||||||||
12/2026 |
4,898 |
82 |
2 |
0 |
||||||||||||||||||||
JPM |
07/2026 |
BRL |
4,582 |
890 |
3 |
0 |
||||||||||||||||||
07/2026 |
KZT |
2,372 |
5 |
0 |
0 |
|||||||||||||||||||
07/2026 |
$ |
885 |
BRL |
4,582 |
2 |
0 |
||||||||||||||||||
08/2026 |
HKD |
10,081 |
$ |
1,289 |
1 |
0 |
||||||||||||||||||
09/2026 |
COP |
53,903 |
15 |
0 |
(1 |
) | ||||||||||||||||||
09/2026 |
$ |
385 |
MXN |
6,686 |
0 |
(5 |
) | |||||||||||||||||
10/2026 |
890 |
BRL |
4,682 |
0 |
(3 |
) | ||||||||||||||||||
MBC |
07/2026 |
EUR |
7,945 |
$ |
9,225 |
147 |
0 |
|||||||||||||||||
07/2026 |
JPY |
2,990 |
19 |
0 |
0 |
|||||||||||||||||||
07/2026 |
$ |
2,116 |
EUR |
1,836 |
0 |
(19 |
) | |||||||||||||||||
08/2026 |
401 |
EGP |
21,672 |
32 |
0 |
|||||||||||||||||||
08/2026 |
2,943 |
EUR |
2,577 |
6 |
0 |
|||||||||||||||||||
SCX |
08/2026 |
HKD |
9,513 |
$ |
1,216 |
1 |
0 |
|||||||||||||||||
09/2026 |
KZT |
2,419 |
5 |
0 |
0 |
|||||||||||||||||||
SOG |
07/2026 |
EUR |
78,663 |
91,763 |
1,883 |
0 |
||||||||||||||||||
07/2026 |
JPY |
9,606 |
60 |
1 |
0 |
|||||||||||||||||||
07/2026 |
$ |
96,751 |
EUR |
85,056 |
434 |
0 |
||||||||||||||||||
08/2026 |
EUR |
85,056 |
$ |
96,882 |
0 |
(433 |
) | |||||||||||||||||
SSB |
07/2026 |
CAD |
197 |
143 |
4 |
0 |
||||||||||||||||||
07/2026 |
EUR |
2,277 |
2,583 |
0 |
(18 |
) | ||||||||||||||||||
07/2026 |
$ |
13,001 |
GBP |
9,835 |
45 |
0 |
||||||||||||||||||
08/2026 |
GBP |
9,835 |
$ |
13,000 |
0 |
(45 |
) | |||||||||||||||||
UAG |
09/2026 |
COP |
2,342,457 |
607 |
0 |
(66 |
) | |||||||||||||||||
09/2026 |
$ |
5,398 |
COP |
20,831,689 |
588 |
0 |
||||||||||||||||||
12/2026 |
COP |
6,281,609 |
$ |
1,610 |
0 |
(158 |
) | |||||||||||||||||
Total Forward Foreign Currency Contracts |
$ |
3,739 |
$ |
(3,489 |
) | |||||||||||||||||||
SWAP AGREEMENTS:
CREDIT DEFAULT SWAPS ON CORPORATE AND SOVEREIGN ISSUES - SELL PROTECTION
(1)
Counterparty |
Reference Entity |
Fixed Receive Rate |
Payment Frequency |
Maturity Date |
Implied Credit Spread at June 30, 2026 (2) |
Notional Amount (3) |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Swap Agreements, at Value (4) |
|||||||||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||||||||
BOA |
Petroleos Mexicanos |
1.000 |
% |
Quarterly |
06/20/2031 |
2.146 |
% |
$ |
4,800 |
$ |
(245 |
) |
$ |
9 |
$ |
0 |
$ |
(236 |
) | |||||||||||||||||||||||
BPS |
Colombia Government International Bonds |
1.000 |
Quarterly |
06/20/2036 |
2.387 |
980 |
(137 |
) |
36 |
0 |
(101 |
) | ||||||||||||||||||||||||||||||
Petroleos Mexicanos |
1.000 |
Quarterly |
12/20/2028 |
1.573 |
800 |
(155 |
) |
145 |
0 |
(10 |
) | |||||||||||||||||||||||||||||||
BRC |
Petroleos Mexicanos |
1.000 |
Quarterly |
06/20/2031 |
2.146 |
900 |
(51 |
) |
7 |
0 |
(44 |
) | ||||||||||||||||||||||||||||||
CBK |
Colombia Government International Bonds |
1.000 |
Quarterly |
06/20/2036 |
2.387 |
3,500 |
(487 |
) |
126 |
0 |
(361 |
) | ||||||||||||||||||||||||||||||
Petroleos Mexicanos |
1.000 |
Quarterly |
12/20/2030 |
2.019 |
200 |
(16 |
) |
8 |
0 |
(8 |
) | |||||||||||||||||||||||||||||||
DBL |
ION platform Finance SA |
5.000 |
Quarterly |
06/20/2031 |
10.863 |
EUR |
1,500 |
(374 |
) |
37 |
0 |
(337 |
) | |||||||||||||||||||||||||||||
DUB |
Eskom « |
4.650 |
Quarterly |
06/30/2029 |
— |
¨ |
$ |
2,658 |
0 |
136 |
136 |
0 |
||||||||||||||||||||||||||||||
Petroleos Mexicanos « |
4.750 |
Monthly |
07/06/2026 |
— |
¨ |
18 |
0 |
0 |
0 |
0 |
||||||||||||||||||||||||||||||||
GST |
Nissan Motor Co. Ltd. |
1.000 |
Quarterly |
12/20/2030 |
2.400 |
JPY |
13,300 |
(7 |
) |
2 |
0 |
(5 |
) | |||||||||||||||||||||||||||||
JPM |
ION platform Finance SA |
5.000 |
Quarterly |
06/20/2030 |
9.785 |
EUR |
100 |
(17 |
) |
1 |
0 |
(16 |
) | |||||||||||||||||||||||||||||
ION platform Finance SA |
5.000 |
Quarterly |
06/20/2031 |
10.863 |
500 |
(121 |
) |
9 |
0 |
(112 |
) | |||||||||||||||||||||||||||||||
Nissan Motor Co. Ltd. |
1.000 |
Quarterly |
12/20/2030 |
2.400 |
JPY |
13,300 |
(7 |
) |
2 |
0 |
(5 |
) | ||||||||||||||||||||||||||||||
Petroleos Mexicanos |
1.000 |
Quarterly |
12/20/2030 |
2.019 |
$ |
300 |
(23 |
) |
11 |
0 |
(12 |
) | ||||||||||||||||||||||||||||||
MYC |
Colombia Government International Bonds |
1.000 |
Quarterly |
06/20/2036 |
2.387 |
3,530 |
(486 |
) |
122 |
0 |
(364 |
) | ||||||||||||||||||||||||||||||
$ |
(2,126 |
) |
$ |
651 |
$ |
136 |
$ |
(1,611 |
) | |||||||||||||||||||||||||||||||||
See Accompanying Notes |
ANNUAL REPORT |
| |
JUNE 30, 2026 |
101 |
Schedule of Investments |
PIMCO Income Strategy Fund II |
(Cont.) |
TOTAL RETURN SWAPS ON SECURITIES
Counterparty |
Pay/Receive (5) |
Underlying Reference |
# of Shares |
Financing Rate |
Payment Frequency |
Maturity Date |
Notional Amount |
Premiums Paid/(Received) |
Unrealized Appreciation/ (Depreciation) |
Swap Agreements, at Value |
||||||||||||||||||||||||||||||
Asset |
Liability |
|||||||||||||||||||||||||||||||||||||||
FAR |
Pay |
NVIDIA Corp. |
3,428 |
5.660% (SOFR plus a specified spread) |
Maturity |
07/29/2026 |
$ |
660 |
$ |
0 |
$ |
(26 |
) |
$ |
0 |
$ |
(26 |
) | ||||||||||||||||||||||
Total Swap Agreements |
$ |
(2,126 |
) |
$ |
625 |
$ |
136 |
$ |
(1,637 |
) | ||||||||||||||||||||||||||||||
FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged/(received) as of June 30, 2026:
Financial Derivative Assets |
Financial Derivative Liabilities |
|||||||||||||||||||||||||||||||||||||||||||||||
Counterparty |
Forward Foreign Currency Contracts |
Purchased Options |
Swap Agreements |
Total Over the Counter |
Forward Foreign Currency Contracts |
Written Options |
Swap Agreements |
Total Over the Counter |
Net Market Value of OTC Derivatives |
Collateral Pledged/ (Received) |
Net Exposure (6) |
|||||||||||||||||||||||||||||||||||||
BOA |
$ |
9 |
$ |
0 |
$ |
0 |
$ |
9 |
$ |
(494 |
) |
$ |
0 |
$ |
(236 |
) |
$ |
(730 |
) |
$ |
(721 |
) |
$ |
585 |
$ |
(136 |
) | |||||||||||||||||||||
BPS |
210 |
0 |
0 |
210 |
(37 |
) |
0 |
(111 |
) |
(148 |
) |
62 |
(40 |
) |
22 |
|||||||||||||||||||||||||||||||||
BRC |
73 |
0 |
0 |
73 |
(87 |
) |
0 |
(44 |
) |
(131 |
) |
(58 |
) |
0 |
(58 |
) | ||||||||||||||||||||||||||||||||
BSH |
1 |
0 |
0 |
1 |
(519 |
) |
0 |
0 |
(519 |
) |
(518 |
) |
0 |
(518 |
) | |||||||||||||||||||||||||||||||||
BSS |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
395 |
395 |
|||||||||||||||||||||||||||||||||||||
CBK |
44 |
0 |
0 |
44 |
(1,485 |
) |
0 |
(369 |
) |
(1,854 |
) |
(1,810 |
) |
1,548 |
(262 |
) | ||||||||||||||||||||||||||||||||
DBL |
0 |
0 |
0 |
0 |
0 |
0 |
(337 |
) |
(337 |
) |
(337 |
) |
0 |
(337 |
) | |||||||||||||||||||||||||||||||||
DUB |
37 |
0 |
136 |
173 |
(28 |
) |
0 |
0 |
(28 |
) |
145 |
0 |
145 |
|||||||||||||||||||||||||||||||||||
FAR |
203 |
0 |
0 |
203 |
(6 |
) |
0 |
(26 |
) |
(32 |
) |
171 |
(260 |
) |
(89 |
) | ||||||||||||||||||||||||||||||||
GLM |
15 |
0 |
0 |
15 |
(85 |
) |
0 |
0 |
(85 |
) |
(70 |
) |
0 |
(70 |
) | |||||||||||||||||||||||||||||||||
GST |
0 |
0 |
0 |
0 |
0 |
0 |
(5 |
) |
(5 |
) |
(5 |
) |
0 |
(5 |
) | |||||||||||||||||||||||||||||||||
JPM |
6 |
0 |
0 |
6 |
(9 |
) |
0 |
(145 |
) |
(154 |
) |
(148 |
) |
271 |
123 |
|||||||||||||||||||||||||||||||||
MBC |
185 |
0 |
0 |
185 |
(19 |
) |
0 |
0 |
(19 |
) |
166 |
0 |
166 |
|||||||||||||||||||||||||||||||||||
MYC |
0 |
0 |
0 |
0 |
0 |
0 |
(364 |
) |
(364 |
) |
(364 |
) |
534 |
170 |
||||||||||||||||||||||||||||||||||
SCX |
1 |
0 |
0 |
1 |
0 |
0 |
0 |
0 |
1 |
0 |
1 |
|||||||||||||||||||||||||||||||||||||
SOG |
2,318 |
0 |
0 |
2,318 |
(433 |
) |
0 |
0 |
(433 |
) |
1,885 |
(1,880 |
) |
5 |
||||||||||||||||||||||||||||||||||
SSB |
49 |
0 |
0 |
49 |
(63 |
) |
0 |
0 |
(63 |
) |
(14 |
) |
0 |
(14 |
) | |||||||||||||||||||||||||||||||||
UAG |
588 |
0 |
0 |
588 |
(224 |
) |
0 |
0 |
(224 |
) |
364 |
(320 |
) |
44 |
||||||||||||||||||||||||||||||||||
Total Over the Counter |
$ |
3,739 |
$ |
0 |
$ |
136 |
$ |
3,875 |
$ |
(3,489 |
) |
$ |
0 |
$ |
(1,637 |
) |
$ |
(5,126 |
) |
|||||||||||||||||||||||||||||
(q) |
Securities with an aggregate market value of $3,332 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of June 30, 2026. |
¨ |
Implied credit spread is not available due to significant unobservable inputs being used in the fair valuation. See Note 3, Investment Valuation and Fair Value Measurements, in the Notes to Financial Statements for more information. |
(1) |
If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
(2) |
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
(3) |
The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
(4) |
The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the underlying referenced instrument’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
(5) |
Receive represents that the Fund receives payments for any positive net return on the underlying reference. The Fund makes payments for any negative net return on such underlying reference. Pay represents that the Fund receives payments for any negative net return on the underlying reference. The Fund makes payments for any positive net return on such underlying reference. |
(6) |
Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information. |
102 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS
The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 7, Principal and Other Risks, in the Notes to Financial Statements on risks of the Fund.
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of June 30, 2026:
Derivatives not accounted for as hedging instruments |
||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Exchange Contracts |
Interest Rate Contracts |
Total |
|||||||||||||||||||
Financial Derivative Instruments - Assets |
||||||||||||||||||||||||
Exchange-traded or centrally cleared |
||||||||||||||||||||||||
Swap Agreements |
$ |
0 |
$ |
21 |
$ |
0 |
$ |
0 |
$ |
1,897 |
$ |
1,918 |
||||||||||||
Over the counter |
||||||||||||||||||||||||
Forward Foreign Currency Contracts |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
3,739 |
$ |
0 |
$ |
3,739 |
||||||||||||
Swap Agreements |
0 |
136 |
0 |
0 |
0 |
136 |
||||||||||||||||||
$ |
0 |
$ |
136 |
$ |
0 |
$ |
3,739 |
$ |
0 |
$ |
3,875 |
|||||||||||||
$ |
0 |
$ |
157 |
$ |
0 |
$ |
3,739 |
$ |
1,897 |
$ |
5,793 |
|||||||||||||
Financial Derivative Instruments - Liabilities |
||||||||||||||||||||||||
Exchange-traded or centrally cleared |
||||||||||||||||||||||||
Swap Agreements |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
2,643 |
$ |
2,643 |
||||||||||||
Over the counter |
||||||||||||||||||||||||
Forward Foreign Currency Contracts |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
3,489 |
$ |
0 |
$ |
3,489 |
||||||||||||
Swap Agreements |
0 |
1,611 |
26 |
0 |
0 |
1,637 |
||||||||||||||||||
$ |
0 |
$ |
1,611 |
$ |
26 |
$ |
3,489 |
$ |
0 |
$ |
5,126 |
|||||||||||||
$ |
0 |
$ |
1,611 |
$ |
26 |
$ |
3,489 |
$ |
2,643 |
$ |
7,769 |
|||||||||||||
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended June 30, 2026:
Derivatives not accounted for as hedging instruments |
||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Exchange Contracts |
Interest Rate Contracts |
Total |
|||||||||||||||||||
Net Realized Gain (Loss) on Financial Derivative Instruments |
||||||||||||||||||||||||
Exchange-traded or centrally cleared |
||||||||||||||||||||||||
Futures |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
(51 |
) |
$ |
(51 |
) | ||||||||||
Swap Agreements |
0 |
352 |
0 |
0 |
(437 |
) |
(85 |
) | ||||||||||||||||
$ |
0 |
$ |
352 |
$ |
0 |
$ |
0 |
$ |
(488 |
) |
$ |
(136 |
) | |||||||||||
Over the counter |
||||||||||||||||||||||||
Forward Foreign Currency Contracts |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
(824 |
) |
$ |
0 |
$ |
(824 |
) | ||||||||||
Written Options |
0 |
0 |
0 |
92 |
0 |
92 |
||||||||||||||||||
Swap Agreements |
0 |
208 |
0 |
0 |
0 |
208 |
||||||||||||||||||
$ |
0 |
$ |
208 |
$ |
0 |
$ |
(732 |
) |
$ |
0 |
$ |
(524 |
) | |||||||||||
$ |
0 |
$ |
560 |
$ |
0 |
$ |
(732 |
) |
$ |
(488 |
) |
$ |
(660 |
) | ||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
||||||||||||||||||||||||
Exchange-traded or centrally cleared |
||||||||||||||||||||||||
Swap Agreements |
$ |
0 |
$ |
8 |
$ |
0 |
$ |
0 |
$ |
(8,302 |
) |
$ |
(8,294 |
) | ||||||||||
Over the counter |
||||||||||||||||||||||||
Forward Foreign Currency Contracts |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
4,223 |
$ |
0 |
$ |
4,223 |
||||||||||||
Swap Agreements |
0 |
387 |
(26 |
) |
0 |
0 |
361 |
|||||||||||||||||
$ |
0 |
$ |
387 |
$ |
(26 |
) |
$ |
4,223 |
$ |
0 |
$ |
4,584 |
||||||||||||
$ |
0 |
$ |
395 |
$ |
(26 |
) |
$ |
4,223 |
$ |
(8,302 |
) |
$ |
(3,710 |
) | ||||||||||
See Accompanying Notes |
ANNUAL REPORT |
| |
JUNE 30, 2026 |
103 |
Schedule of Investments |
PIMCO Income Strategy Fund II |
(Cont.) |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2026 in valuing the Fund’s assets and liabilities:
Category and Subcategory |
Level 1 |
Level 2 |
Level 3 |
Fair Value at 06/30/2026 |
||||||||||||
Investments in Securities, at Value |
||||||||||||||||
Loan Participations and Assignments |
$ |
0 |
$ |
181,615 |
$ |
72,440 |
$ |
254,055 |
||||||||
Corporate Bonds & Notes |
||||||||||||||||
Banking & Finance |
0 |
59,166 |
0 |
59,166 |
||||||||||||
Industrials |
0 |
185,417 |
19,532 |
204,949 |
||||||||||||
Utilities |
0 |
37,226 |
138 |
37,364 |
||||||||||||
Convertible Bonds & Notes |
||||||||||||||||
Industrials |
0 |
19,016 |
0 |
19,016 |
||||||||||||
Municipal Bonds & Notes |
||||||||||||||||
Michigan |
0 |
1,700 |
0 |
1,700 |
||||||||||||
West Virginia |
0 |
4,579 |
0 |
4,579 |
||||||||||||
U.S. Government Agencies |
0 |
21,285 |
5,668 |
26,953 |
||||||||||||
U.S. Treasury Obligations |
0 |
846 |
0 |
846 |
||||||||||||
Non-Agency Mortgage-Backed Securities |
0 |
59,352 |
0 |
59,352 |
||||||||||||
Asset-Backed Securities |
||||||||||||||||
Automobile ABS Other |
0 |
1,624 |
0 |
1,624 |
||||||||||||
Home Equity Other |
0 |
12,639 |
0 |
12,639 |
||||||||||||
Whole Loan Collateral |
0 |
3,784 |
0 |
3,784 |
||||||||||||
Other ABS |
0 |
15,622 |
1,754 |
17,376 |
||||||||||||
Sovereign Issues |
0 |
78,113 |
0 |
78,113 |
||||||||||||
Common Stocks |
||||||||||||||||
Communication Services |
3,316 |
0 |
3,907 |
7,223 |
||||||||||||
Consumer Discretionary |
0 |
0 |
17 |
17 |
||||||||||||
Financials |
12,963 |
7,779 |
0 |
20,742 |
||||||||||||
Industrials |
0 |
0 |
15,095 |
15,095 |
||||||||||||
Information Technology |
686 |
0 |
0 |
686 |
||||||||||||
Real Estate |
288 |
0 |
0 |
288 |
||||||||||||
Warrants |
||||||||||||||||
Communication Services |
0 |
0 |
1,514 |
1,514 |
||||||||||||
Preferred Securities |
||||||||||||||||
Banking & Finance |
0 |
1,185 |
10,522 |
11,707 |
||||||||||||
Industrials |
0 |
2,246 |
2,630 |
4,876 |
||||||||||||
Category and Subcategory |
Level 1 |
Level 2 |
Level 3 |
Fair Value at 06/30/2026 |
||||||||||||
Real Estate Investment Trusts |
||||||||||||||||
Real Estate |
$ |
2,367 |
$ |
0 |
$ |
0 |
$ |
2,367 |
||||||||
Short-Term Instruments |
||||||||||||||||
Mutual Funds |
213 |
0 |
0 |
213 |
||||||||||||
Egypt Treasury Bills |
0 |
1,372 |
0 |
1,372 |
||||||||||||
Nigeria Treasury Bills |
0 |
15,321 |
0 |
15,321 |
||||||||||||
U.S. Treasury Bills |
0 |
3,160 |
0 |
3,160 |
||||||||||||
$ |
19,833 |
$ |
713,047 |
$ |
133,217 |
$ |
866,097 |
|||||||||
Investments in Affiliates, at Value |
||||||||||||||||
Short-Term Instruments |
||||||||||||||||
Central Funds Used for Cash Management Purposes |
$ |
57,496 |
$ |
0 |
$ |
0 |
$ |
57,496 |
||||||||
Total Investments |
$ |
77,329 |
$ |
713,047 |
$ |
133,217 |
$ |
923,593 |
||||||||
Financial Derivative Instruments - Assets |
||||||||||||||||
Exchange-traded or centrally cleared |
0 |
1,918 |
0 |
1,918 |
||||||||||||
Over the counter |
0 |
3,739 |
136 |
3,875 |
||||||||||||
$ |
0 |
$ |
5,657 |
$ |
136 |
$ |
5,793 |
|||||||||
Financial Derivative Instruments - Liabilities |
||||||||||||||||
Exchange-traded or centrally cleared |
0 |
(2,643 |
) |
0 |
(2,643 |
) | ||||||||||
Over the counter |
0 |
(5,126 |
) |
0 |
(5,126 |
) | ||||||||||
$ |
0 |
$ |
(7,769 |
) |
$ |
0 |
$ |
(7,769 |
) | |||||||
Total Financial Derivative Instruments |
$ |
0 |
$ |
(2,112 |
) |
$ |
136 |
$ |
(1,976 |
) | ||||||
Totals |
$ |
77,329 |
$ |
710,935 |
$ |
133,353 |
$ |
921,617 |
||||||||
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Fund during the period ended June 30, 2026:
Category and Subcategory |
Beginning Balance at 06/30/2025 |
Net Purchases (1) |
Net Sales/ Settlements (1) |
Accrued Discounts/ (Premiums) |
Realized Gain/(Loss) |
Net Change in Unrealized Appreciation/ (Depreciation) (2) |
Transfers into Level 3 |
Transfers out of Level 3 |
Ending Balance at 06/30/2026 |
Net Change in Unrealized Appreciation/ (Depreciation) on Investments Held at 06/30/2026 (2) |
||||||||||||||||||||||||||||||
Investments in Securities, at Value |
||||||||||||||||||||||||||||||||||||||||
Loan Participations and Assignments |
$ |
57,540 |
$ |
18,671 |
$ |
(26,858 |
) |
$ |
253 |
$ |
174 |
$ |
(2,527 |
) |
$ |
25,187 |
$ |
0 |
$ |
72,440 |
$ |
(527 |
) | |||||||||||||||||
Corporate Bonds & Notes |
||||||||||||||||||||||||||||||||||||||||
Banking & Finance |
265 |
0 |
0 |
0 |
0 |
17 |
0 |
(282 |
) |
0 |
0 |
|||||||||||||||||||||||||||||
Industrials |
17,399 |
1,489 |
(1,252 |
) |
17 |
0 |
1,879 |
0 |
0 |
19,532 |
1,549 |
|||||||||||||||||||||||||||||
Utilities |
0 |
105 |
0 |
(2 |
) |
0 |
35 |
0 |
0 |
138 |
35 |
|||||||||||||||||||||||||||||
U.S. Government Agencies |
5,071 |
0 |
(153 |
) |
35 |
50 |
665 |
0 |
0 |
5,668 |
661 |
|||||||||||||||||||||||||||||
Asset-Backed Securities |
||||||||||||||||||||||||||||||||||||||||
Other ABS |
2058 |
0 |
0 |
5 |
(1,214 |
) |
863 |
42 |
0 |
1,754 |
(209 |
) | ||||||||||||||||||||||||||||
Common Stocks |
||||||||||||||||||||||||||||||||||||||||
Communication Services |
11,245 |
0 |
(9,994 |
) |
0 |
5,304 |
(2,648 |
) |
0 |
0 |
3,907 |
3,751 |
||||||||||||||||||||||||||||
Consumer Discretionary |
17 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
17 |
0 |
||||||||||||||||||||||||||||||
Financials |
8,063 |
0 |
(8,261 |
) |
0 |
(8,134 |
) |
8,332 |
0 |
0 |
0 |
0 |
||||||||||||||||||||||||||||
Health Care |
25,446 |
0 |
(22,755 |
) |
0 |
(796 |
) |
(1,895 |
) |
0 |
0 |
0 |
0 |
|||||||||||||||||||||||||||
Industrials |
12,761 |
246 |
0 |
0 |
0 |
2,088 |
0 |
0 |
15,095 |
2,088 |
||||||||||||||||||||||||||||||
Real Estate (3) |
13 |
0 |
0 |
0 |
0 |
275 |
0 |
(288 |
) |
0 |
0 |
|||||||||||||||||||||||||||||
Warrants |
||||||||||||||||||||||||||||||||||||||||
Communication Services |
2,205 |
805 |
(1,987 |
) |
0 |
525 |
(34 |
) |
0 |
0 |
1,514 |
709 |
||||||||||||||||||||||||||||
Financials |
1 |
0 |
(5 |
) |
0 |
(5,384 |
) |
5,388 |
0 |
0 |
0 |
0 |
||||||||||||||||||||||||||||
104 |
PIMCO CLOSED-END FUNDS |
See Accompanying Notes |
| June 30, 2026 |
Category and Subcategory |
Beginning Balance at 06/30/2025 |
Net Purchases (1) |
Net Sales/ Settlements (1) |
Accrued Discounts/ (Premiums) |
Realized Gain/(Loss) |
Net Change in Unrealized Appreciation/ (Depreciation) (2) |
Transfers into Level 3 |
Transfers out of Level 3 |
Ending Balance at 06/30/2026 |
Net Change in Unrealized Appreciation/ (Depreciation) on Investments Held at 06/30/2026 (2) |
||||||||||||||||||||||||||||||
Preferred Securities |
||||||||||||||||||||||||||||||||||||||||
Banking & Finance |
$ |
0 |
$ |
10,025 |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
497 |
$ |
0 |
$ |
0 |
$ |
10,522 |
$ |
496 |
||||||||||||||||||||
Industrials |
2,968 |
372 |
0 |
0 |
0 |
(710 |
) |
0 |
0 |
2,630 |
(709 |
) | ||||||||||||||||||||||||||||
$ |
145,052 |
$ |
31,713 |
$ |
(71,265 |
) |
$ |
308 |
$ |
(9,475 |
) |
$ |
12,225 |
$ |
25,229 |
$ |
(570 |
) |
$ |
133,217 |
$ |
7,844 |
||||||||||||||||||
Financial Derivative Instruments |
||||||||||||||||||||||||||||||||||||||||
Over the counter |
$ |
173 |
$ |
0 |
$ |
(1 |
) |
$ |
0 |
$ |
0 |
$ |
(36 |
) |
$ |
0 |
$ |
0 |
$ |
136 |
$ |
(36 |
) | |||||||||||||||||
Totals |
$ |
145,225 |
$ |
31,713 |
$ |
(71,266 |
) |
$ |
308 |
$ |
(9,475 |
) |
$ |
12,189 |
$ |
25,229 |
$ |
(570 |
) |
$ |
133,353 |
$ |
7,808 |
|||||||||||||||||
The following is a summary of significant unobservable inputs used in the fair valuations of assets and liabilities categorized within Level 3 of the fair value hierarchy:
Category and Subcategory |
Ending Balance at 06/30/2026 |
Valuation Technique |
Unobservable Inputs |
(% Unless Noted Otherwise) |
||||||||||||||||
Input Value(s) |
Weighted Average |
|||||||||||||||||||
Investments in Securities, at Value |
||||||||||||||||||||
Loan Participations and Assignments |
$ |
34,152 |
Discounted Cash Flow |
Discount Rate |
6.790 – 11.323 |
8.564 |
||||||||||||||
29,118 |
Third Party Vendor |
Broker Quote |
57.500 - 100.125 |
95.584 |
||||||||||||||||
3,624 |
Indicative Market Quotation |
Broker Quote |
101.250 |
— |
||||||||||||||||
596 |
Recent Transaction |
Commitment |
99.000 - 99.500 |
99.334 |
||||||||||||||||
4,950 |
Recent Transaction |
Purchase Price |
99.000 - 100.000 |
— |
||||||||||||||||
Corporate Bonds & Notes |
||||||||||||||||||||
Industrials |
19,532 |
Comparable Companies / Discounted Cash Flow |
EBITDA Multiple/Discount Rate |
X/% |
13.000/10.250 |
— |
||||||||||||||
Utilities |
138 |
Indicative Market Quotation |
Broker Quote |
EUR |
13.500 |
— |
||||||||||||||
U.S. Government Agencies |
5,668 |
Discounted Cash Flow |
Discount Rate |
9.827 |
— |
|||||||||||||||
Asset-Backed Securities |
||||||||||||||||||||
Other ABS |
1,712 |
Discounted Cash Flow |
Discount Rate |
12.000 - 20.000 |
18.314 |
|||||||||||||||
42 |
Expected Recovery |
Price |
5.880 |
— |
||||||||||||||||
Common Stocks |
||||||||||||||||||||
Communication Services |
3,535 |
Indicative Market Quotation |
Broker Quote |
$ |
15.125 |
— |
||||||||||||||
372 |
Reference Instrument |
Liquidity Discount |
14.000 |
— |
||||||||||||||||
Consumer Discretionary |
17 |
Expected Recovery |
Price |
— |
— |
|||||||||||||||
Industrials |
12,148 |
Comparable Companies / Discounted Cash Flow |
EBITDA Multiple/Discount Rate |
X/% |
13.000/10.250 |
— |
||||||||||||||
760 |
Indicative Market Quotation/ Recent Transaction |
Broker Quote / Purchase Price |
$/$ |
3.250/2.000 |
— |
|||||||||||||||
2,187 |
Indicative Market Quotation |
Broker Quote |
$ |
0.656 - 22.917 |
22.564 |
|||||||||||||||
Warrants |
||||||||||||||||||||
Communication Services |
1,514 |
Other Valuation Techniques (4) |
— |
— |
— |
|||||||||||||||
Preferred Securities |
||||||||||||||||||||
Banking & Finance |
4,823 |
Discounted Cash Flow |
Discount Rate |
11.630 |
— |
|||||||||||||||
5,699 |
Recent transaction |
Purchase Price |
$ |
1.000 |
— |
|||||||||||||||
Industrials |
260 |
Comparable Companies |
Revenue/ EBITDA Multiple |
X |
4.625/18.000 |
— |
||||||||||||||
2,370 |
Discounted Cash Flow |
Discount Rate |
26.880 |
— |
||||||||||||||||
Financial Derivative Instruments |
||||||||||||||||||||
Over the counter |
136 |
Indicative Market Quotation |
Broker Quote |
0.053 - 5.109 |
5.107 |
|||||||||||||||
Total |
$ |
133,353 |
||||||||||||||||||
(1) |
Net Purchases and Settlements for Financial Derivative Instruments may include payments made or received upon entering into swap agreements to compensate for differences between the stated terms of the swap agreement and prevailing market conditions. |
(2) |
Any difference between Net Change in Unrealized Appreciation/(Depreciation) and Net Change in Unrealized Appreciation/(Depreciation) on Investments Held at June 30, 2026 may be due to an investment no longer held or categorized as Level 3 at period end. |
(3) |
Sector type updated from Financials to Real Estate since prior fiscal year end. |
(4) |
Includes valuation techniques not defined in the Notes to Financial Statements as securities valued using such techniques are not considered significant to the Fund. |
| See Accompanying Notes | ANNUAL REPORT |
| | JUNE 30, 2026 | 105 |
Notes to Financial Statements |
1. ORGANIZATION
PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO High Income Fund, PIMCO Income Strategy Fund and PIMCO Income Strategy Fund II (each, a “Fund” and collectively, the “Funds”) are organized as
closed-end
management investment companies registered under the Investment Company Act of 1940, as amended, and the rules and regulations thereunder (the “Act”). Each Fund was organized as a Massachusetts business trust on the dates shown in the table below. Pacific Investment Management Company LLC (“PIMCO” or the “Manager”) serves as the Funds’ investment manager. Fund Name |
Formation Date |
|||||||
PIMCO Corporate & Income Opportunity Fund |
September 13, 2002 | |||||||
PIMCO Corporate & Income Strategy Fund |
October 17, 2001 | |||||||
PIMCO High Income Fund |
February 18, 2003 | |||||||
PIMCO Income Strategy Fund |
June 19, 2003 | |||||||
PIMCO Income Strategy Fund II |
June 30, 2004 | |||||||
Hereinafter, the Board of Trustees of the Funds shall be collectively referred to as the “Board.”
Each Fund operates as a single reportable operating segment under the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”)
2023-07,
Segment Reporting (Topic 280). An operating segment is defined in Topic 280 as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the public entity’s chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and to assess its performance, and has discrete financial information available. The Officers of the Funds, as listed in the Management of the Funds section of the most recent annual report, act as the Funds’ CODM. Each Fund represents a single operating segment, as the CODM monitors the operating results of the Funds as a whole and each Fund’s long-term strategic asset allocation is pre-determined
in accordance with the terms of its prospectus, based on a defined investment strategy which is executed by the Funds’ portfolio managers as a team. The financial information in the form of each Fund’s portfolio composition, total returns, expense ratios and changes in net assets (i.e., changes in net assets resulting from operations, subscriptions and redemptions), which are used by the CODM to assess the segment’s performance versus each Fund’s comparative benchmarks and to make resource allocation decisions for each Fund’s single segment, is consistent with that presented within the Funds’ financial statements. Segment assets are reflected on the accompanying Statements of Assets and Liabilities as “total assets”
and significant segment expenses are listed on the accompanying Statements of Operations.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Each Fund is treated as an investment company under the reporting requirements of U.S. GAAP, including, but not limited to ASC 946. The functional and reporting currency for the Funds is the U.S. dollar. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
(a) Securities Transactions and Investment Income
Securities transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date. Realized gains (losses) from securities sold are recorded on the identified cost basis. Dividend income is recorded on the
ex-dividend
date, except certain dividends from foreign securities where the ex-dividend
date may have passed, which are recorded as soon as a Fund is informed of the ex-dividend
date. Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from settlement date, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective date. For convertible securities, premiums attributable to the conversion feature are not amortized. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized appreciation (depreciation) on investments on the Statements of Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain (loss) on investments on the Statements of Operations. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Statements of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term capital gain distributions received from registered investment companies, if any, are recorded as realized gains. 106 |
PIMCO CLOSED-END FUNDS |
| June 30, 2026 |
Debt obligations may be placed on
non-accrual
status and related interest income may be reduced by ceasing current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual
status when the issuer resumes interest payments or when collectability of interest is probable. A debt obligation may be granted, in certain situations, a contractual or non-contractual
forbearance for interest payments that are expected to be paid after agreed upon pay dates. (b)
F
oreign Taxes
A Fund may be subject to foreign taxes on income, stock dividends, capital gains on investments or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which a Fund invests. These foreign taxes, if any, are paid by a Fund and are reflected in its Statement of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable as of June 30, 2026, if any, are disclosed in the Statements of Assets and Liabilities.
(
c
)
F
oreign Currency Translation
The market values of foreign securities, currency holdings and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the current exchange rates each business day. Purchases and sales of securities and income and expense items denominated in foreign currencies, if any, are translated into U.S. dollars at the exchange rate in effect on the transaction date. The Funds do not separately report the effects of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized gain (loss) and net change in unrealized appreciation (depreciation) from investments on the Statements of Operations. The Funds may invest in foreign currency-denominated securities and may engage in foreign currency transactions either on a spot (cash) basis at the rate prevailing in the currency exchange market at the time or through a forward foreign currency contract. Realized foreign exchange gains (losses) arising from sales of spot foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid are included in net realized gain (loss) on foreign currency transactions on the Statements of Operations. Net unrealized foreign exchange gains (losses) arising from changes in foreign exchange rates on foreign
denominated assets and liabilities other than investments in securities held at the end of the reporting period are included in net change in unrealized appreciation (depreciation) on foreign currency assets and liabilities on the Statements of Operations.
(d)
D
istributions
—
Common Shares
The following table shows the anticipated frequency of distributions from net investment income to common shareholders.
Distribution Frequency |
||||||||||||
Fund Name |
Declared |
Distributed |
||||||||||
PIMCO Corporate & Income Opportunity Fund |
Monthly | Monthly | ||||||||||
PIMCO Corporate & Income Strategy Fund |
Monthly | Monthly | ||||||||||
PIMCO High Income Fund |
Monthly | Monthly | ||||||||||
PIMCO Income Strategy Fund |
Monthly | Monthly | ||||||||||
PIMCO Income Strategy Fund II |
Monthly | Monthly | ||||||||||
Each Fund intends to distribute at least annually to its shareholders all or substantially all of its net
tax-exempt
interest and any investment company taxable income, and may distribute its net capital gain. A Fund may revise its distribution policy or postpone the payment of distributions at any time. As of the end of the fiscal year, none of the Funds were in default on long-term debt or had any accumulated dividend in arrears.
A Fund may engage in investment strategies, including those that employ the use of derivatives, to, among other things, seek to generate current, distributable income without regard to possible declines in the Fund’s net asset value (“NAV”). A Fund’s income and gain generating strategies, including certain derivatives strategies, may generate current, distributable income, even if such strategies could potentially result in declines in the Fund’s NAV. A Fund may enter into opposite sides of interest rate swap and other derivatives for the principal purpose of generating distributable gains on the one side (characterized as ordinary income for tax purposes) that are not part of the Fund’s duration or yield curve management strategies, and with a substantial possibility that the Fund will experience a corresponding capital loss and decline in NAV with respect to the opposite side transaction (to the extent it does not have corresponding offsetting capital gains). Consequently, common shareholders may receive distributions and owe tax on amounts that are effectively a taxable return of the shareholder’s investment in a Fund at a time when their investment in the Fund has declined in value, which may be taxed at ordinary income rates. The tax treatment of certain derivatives in which a Fund invests may be unclear and thus subject to recharacterization. Any recharacterization of payments made or received by a Fund pursuant to derivatives potentially could affect the amount, timing or character of Fund distributions. In addition, the tax treatment of such investment strategies may be changed by regulation or otherwise.
ANNUAL REPORT |
| | JUNE 30, 2026 | 107 |
Notes to Financial Statements |
(Cont.) |
More generally, sales of a Fund’s portfolio holdings may result in short-term capital gains (which are generally taxed to shareholders at ordinary income tax rates when distributed net of short-term capital losses and net of long-term capital losses), potentially subjecting shareholders of the Fund to adverse tax consequences.
Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may cause timing differences between income and capital gain recognition. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. As a result, income distributions and capital gain distributions declared during a fiscal period may differ significantly from the net investment income (loss) and realized gains (losses) reported on each Fund’s annual financial statements presented under U.S. GAAP.
Certain Funds may invest in one or more wholly-owned subsidiaries (each a “Subsidiary” and collectively the “Subsidiaries”) that are treated as disregarded entities for U.S. federal income tax purposes. In the case of a subsidiary that is so treated, for U.S. federal income tax purposes, (i) the Fund is treated as owning the subsidiary’s assets directly; (ii) any income, gain, loss, deduction or other tax items arising in respect of the subsidiary’s assets will be treated as if they are realized or incurred, as applicable, directly by the Fund; and (iii) distributions, if any, the Fund receives from the subsidiary will have no effect on a Fund’s U.S. federal income tax liability.
Separately, if a Fund determines or estimates, as applicable, that a portion of a distribution may be comprised of amounts from sources other than net investment income in accordance with its policies, accounting records (if applicable) and accounting practices, the Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. For these purposes, a Fund determines or estimates, as applicable, the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is determined or estimated, as applicable, that a particular distribution does not include capital gains or
paid-in
surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between a Fund’s daily internal accounting records and practices, a Fund’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, a Fund’s internal accounting records and practices may take into account, among other factors, tax-related
characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, but are not limited to, for certain funds, the treatment of periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that a Fund may not issue a Section 19 Notice in situations where the Fund’s financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Please visit www.pimco.com for the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition of distributions. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.
Distributions classified as a tax basis return of capital at a Fund’s fiscal year end, if any, are reflected on the Statements of Changes in Net Assets and have been recorded to paid in capital on the Statements of Assets and Liabilities. In addition, other amounts have been reclassified between distributable earnings (accumulated loss) and paid in capital on the Statements of Assets and Liabilities to more appropriately conform U.S. GAAP to tax characterizations of distributions.
(e)
N
ew Accounting Pronouncements
and Regulatory Updates
In September 2023, the U.S. Securities and Exchange Commission (“SEC”) adopted amendments to Rule
35d-1
under the Act, which governs fund naming conventions (the “Names Rule”). In general, the Names Rule requires funds with certain types of names to adopt a policy to invest at least 80% of their assets in the type of investment suggested by the name. The amendments expand the scope of the current rule to include any term used in a fund name that suggests the fund makes investments that have, or whose issuers have, particular characteristics. Additionally, the amendments modify the circumstances under which a fund may deviate from its 80% investment policy and address the calculation methodology of derivatives instruments for purposes of the rule. Changes to a fund’s calculation methodology for derivatives instruments for purposes of Rule 35d-1
consistent with such amendments and applicable regulatory interpretations thereof will not constitute a change to a fund’s policy adopted pursuant to Rule 35d-1
and will not require notice or shareholder approval. The amendments became effective December 11, 2023. On March 14, 2025, the SEC extended the compliance date from December 11, 2025 to June 11, 2026 for fund groups with $1 billion or more in net assets and modified the operation of the compliance dates to allow for compliance based on the timing of certain annual disclosure and reporting obligations that are tied to a fund’s fiscal year-end.
Management has evaluated the implications of the Names Rule on the Funds and made certain changes to the investment policies and related disclosure for the PIMCO Corporate & Income Opportunity Fund and PIMCO Corporate & Income Strategy Fund. See Note 16, Subsequent Events in the Notes to Financial Statements for more information. 108 |
PIMCO CLOSED-END FUNDS |
| June 30, 2026 |
3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS
(
a)
I
nvestment Valuation Policies
The NAV of a Fund’s shares, or each of its share classes as applicable, is determined by dividing the total value of portfolio investments and other assets attributable to the Fund or class, less any liabilities, as applicable, by the total number of shares outstanding.
On each day that the New York Stock Exchange (“NYSE”) is open, each Fund’s shares are ordinarily valued as of the close of regular trading (normally 4:00 p.m., Eastern Time) (“NYSE Close”). Information that becomes known to a Fund or its agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. If regular trading on the NYSE closes earlier than scheduled, each Fund may calculate its NAV as of the earlier closing time or calculate its NAV as of the NYSE Close for that day. Each Fund generally does not calculate its NAV on days on which the NYSE is not open for business. If the NYSE is closed on a day it would normally be open for business, each Fund may calculate its NAV as of the NYSE Close for such day or such other time that each Fund may determine.
For purposes of calculating NAV, portfolio securities and other assets for which market quotations are readily available are valued at market value. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that a Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. Market value is generally determined on the basis of official closing prices or the last reported sales prices. The Funds will normally use pricing data for domestic equity securities received shortly after the NYSE Close and do not normally take into account trading, clearances or settlements that take place after the NYSE Close. A foreign
(non-U.S.)
equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by PIMCO to be the primary exchange. If market value pricing is used, a foreign (non-U.S.)
equity security will be valued as of the close of trading on the foreign exchange or the NYSE Close if the NYSE Close occurs before the end of trading on the foreign exchange. Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to Rule
2a-5
under the Act. As a general principle, the fair value of a security or other asset is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Pursuant to Rule 2a-5,
the Board has designated PIMCO as the valuation designee (“Valuation Designee”) for each Fund to perform the fair value determination relating to all Fund investments. PIMCO may carry out its designated responsibilities as Valuation Designee through various teams and committees. The Valuation Designee’s policies and procedures govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund portfolio investments. The Valuation Designee may value Fund portfolio securities for which market quotations are not readily available and other Fund assets utilizing inputs from pricing services, quotation reporting systems, valuation agents and other third-party sources (together, “Pricing Sources”).
Domestic and foreign
(non-U.S.)
fixed income securities, non-exchange
traded derivatives and equity options are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Sources using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Sources may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Common stocks, exchange traded funds (“ETFs”), exchange-traded notes and financial derivative instruments, such as futures contracts, rights and warrants, or options on futures that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. Exchange-traded options, except equity options, futures and options on futures, are valued at the settlement price determined by the relevant exchange. Swap agreements and swaptions are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Sources. With respect to any portion of a Fund’s assets that are invested in one or more open-end
management investment companies (other than ETFs), the Fund’s NAV will be calculated based on the NAVs of such investments. Open-end
management investment companies may include affiliated funds. If a foreign
(non-U.S.)
equity security’s value has materially changed after the close of the security’s primary exchange or principal market but before the NYSE Close, the security may be valued at fair value. Foreign (non-U.S.)
equity securities that do not trade when the NYSE is open are also valued at fair value. With respect to foreign (non-U.S.)
equity securities, a Fund may determine the fair value of investments based on information provided by Pricing Sources, which may recommend fair value or adjustments with reference to other securities, indexes or assets. In considering whether fair valuation is required and in determining fair values, the Valuation Designee may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indexes) that occur ANNUAL REPORT |
| | JUNE 30, 2026 | 109 |
Notes to Financial Statements |
(Cont.) |
after the close of the relevant market and before the NYSE Close. A Fund may utilize modeling tools provided by third-party vendors to determine fair values of foreign
(non-U.S.)
securities. For these purposes, unless otherwise determined by the Valuation Designee, any movement in the applicable reference index or instrument (“zero trigger”) between the earlier close of the applicable foreign market and the NYSE Close may be deemed to be a significant event, prompting the application of the pricing model (effectively resulting in daily fair valuations). Foreign exchanges may permit trading in foreign (non-U.S.)
equity securities on days when a Fund is not open for business, which may result in a Fund’s portfolio investments being affected when shareholders are unable to buy or sell shares. Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing Sources. As a result, the value of such investments and, in turn, the NAV of a Fund’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that a Fund is not open for business. As a result, to the extent that a Fund holds foreign
(non-U.S.)
investments, the value of those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in each Fund’s next calculated NAV. An alternative exchange rate may be obtained from a Pricing Source or an exchange rate may otherwise be determined if believed to be more reflective of the rates at which a Fund may transact. Whole loans may be fair valued using inputs that take into account borrower- or loan-level data (e.g., credit risk of the borrower) that is updated periodically throughout the life of each individual loan; any new borrower- or loan-level data received in written reports periodically by a Fund normally will be taken into account in calculating the NAV. A Fund’s whole loan investments, including those originated by the Fund or through an alternative lending platform, generally are fair valued by the Valuation Designee in accordance with procedures approved by the Board.
Fair valuation may require subjective determinations about the value of a security. While the Funds’ and Valuation Designee’s policies and procedures are intended to result in a calculation of a Fund’s NAV that fairly reflects security values as of the time of pricing, a Fund cannot ensure that fair values accurately reflect the price that a Fund could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by a Fund may differ from the value that would be realized if the securities were sold.
(
b
)
F
air Value Hierarchy
U.S. GAAP describes fair value as the price that a Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2 or 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:
∎ |
Level 1 — Quoted prices (unadjusted) in active markets or exchanges for identical assets and liabilities. |
∎ |
Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs. |
∎ |
Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Valuation Designee that are used in determining the fair value of investments. |
Assets or liabilities categorized as Level 2 or 3 as of period end have been transferred between Levels 2 and 3 since the prior period due to changes in the method utilized in valuing the investments. Transfers from Level 2 to Level 3 are a result of a change, in the normal course of business, from the use of methods used by pricing services (Level 2) to the use of a broker quote or valuation technique which utilizes significant unobservable inputs due to an absence of current or reliable market-based data (Level 3). Transfers from Level 3 to Level 2 are a result of the availability of current and reliable market-based data provided by pricing services or other valuation techniques which utilize significant observable inputs. In accordance with the requirements of U.S. GAAP, the amounts of transfers into and out of Level 3, if material, are disclosed in the Notes to Schedule of Investments for each respective Fund.
For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to realized gain (loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value is used for the
110 |
PIMCO CLOSED-END FUNDS |
| June 30, 2026 |
transfers between fair value Levels of a Fund’s assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy and, if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Schedule of Investments for each respective Fund.
(c) Valuation Techniques and the Fair Value Hierarchy
L
evel
1, Level
2 and Level
3 trading assets and trading liabilities, at fair value
The valuation methods (or “techniques”) and significant inputs used in determining the fair values of portfolio securities or other assets and liabilities categorized as Level 1, Level 2 and Level 3 of the fair value hierarchy are as follows:
Common stocks, ETFs, exchange-traded notes and financial derivative instruments, such as futures contracts, rights and warrants, or options on futures that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy.
Investments in registered
open-end
investment companies (other than ETFs) will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Investments in unregistered open-end
investment companies will be calculated based upon the NAVs of such investments and are considered Level 1 provided that the NAVs are observable, calculated daily and are the value at which both purchases and sales will be conducted. Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities,
non-U.S.
bonds and short-term debt instruments (such as commercial paper, time deposits and certificates of deposit) are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Sources that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The Pricing Sources’ internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy. Fixed income securities purchased on a delayed-delivery basis or as a repurchase commitment in a sale-buyback transaction are marked to
market daily until settlement at the forward settlement date and are categorized as Level 2 of the fair value hierarchy.
Mortgage-related and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also normally valued by Pricing Sources that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche, and incorporate deal collateral performance, as available. Mortgage-related and asset-backed securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.
Valuation adjustments may be applied to certain securities that are solely traded on a foreign exchange to account for the market movement between the close of the foreign market and the NYSE Close. These securities are valued using Pricing Sources that consider the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments. Securities using these valuation adjustments are categorized as Level 2 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are also categorized as Level 2 of the fair value hierarchy.
Valuation adjustments may be applied to certain exchange traded futures and options to account for market movement between the exchange settlement and the NYSE Close. These securities are valued using quotes obtained from a quotation reporting system, established market makers or Pricing Sources. Financial derivatives using these valuation adjustments are categorized as Level 2 of the fair value hierarchy.
Equity exchange-traded options and over the counter financial derivative instruments, such as forward foreign currency contracts and options contracts derive their value from underlying asset prices, indexes, reference rates and other inputs or a combination of these factors. These contracts are normally valued on the basis of quotes obtained from a quotation reporting system, established market makers or Pricing Sources (normally determined as of the NYSE Close). Depending on the product and the terms of the transaction, financial derivative instruments can be valued by Pricing Sources using a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as quoted prices, issuer details, indexes, bid/ask spreads, interest rates, implied volatilities, yield curves, dividends and exchange rates. Financial derivative instruments that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.
ANNUAL REPORT |
| | JUNE 30, 2026 | 111 |
Notes to Financial Statements |
(Cont.) |
Centrally cleared swaps and over the counter swaps derive their value from underlying asset prices, indexes, reference rates and other inputs or a combination of these factors. They are valued using a broker-dealer bid quotation or on market-based prices provided by Pricing Sources (normally determined as of the NYSE Close). Centrally cleared swaps and over the counter swaps can be valued by Pricing Sources using a series of techniques, including simulation pricing models. The pricing models may use inputs that are observed from actively quoted markets such as the overnight index swap rate, interest rates, yield curves and credit spreads. These securities are categorized as Level 2 of the fair value hierarchy.
Proxy pricing procedures set the base price of a fixed income security and subsequently adjust the price proportionally to market value changes of a
pre-determined
security deemed to be comparable in duration, generally a U.S. Treasury or sovereign note based on country of issuance. The base price may be a broker-dealer quote, transaction price or an internal value as derived by analysis of market data. The base price of the security may be reset on a periodic basis based on the availability of market data and procedures approved by the Valuation Oversight Committee. Significant changes in the unobservable inputs of the proxy pricing process (the base price) would result in direct and proportional changes in the fair value of the security. These securities are categorized as Level 3 of the fair value hierarchy. If third-party evaluated vendor pricing is not available or not deemed to be indicative of fair value, the Manager may elect to obtain Broker Quotes directly from the broker-dealer or passed through from a third-party vendor. In the event that fair value is based upon a single sourced Broker Quote, these securities are categorized as Level 3 of the fair value hierarchy. Broker Quotes are typically received from established market participants. Although independently received, the Manager does not have the transparency to view the underlying inputs which support the market quotation. Significant changes in the Broker Quote would have direct and proportional changes in the fair value of the security.
Reference instrument valuation estimates fair value by utilizing the correlation of the security to one or more broad-based securities, market indexes, and/or other financial instruments, whose pricing information is readily available. Unobservable inputs may include those used in algorithms based on percentage change in the reference instruments and/or weights of each reference instrument. Significant changes in the unobservable inputs would result in direct and proportional changes in the fair value of the security. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source or input of the reference instrument.
Expected recovery valuation estimates that the fair value of an existing asset can be recovered, net of any liability. Significant changes in the unobservable inputs would result in direct and proportional changes in the fair value of the security. These securities are categorized as Level 3 of the fair value hierarchy.
The Discounted Cash Flow model is based on future cash flows generated by the investment and may be normalized based on expected investment performance. Future cash flows are discounted to present value using an appropriate rate of return, typically calibrated to the initial transaction date and adjusted based on Capital Asset Pricing Model and/or other market-based inputs. Significant changes in the unobservable inputs would result in direct and proportional changes in the fair value of the security. These securities are categorized as Level 3 of the fair value hierarchy.
The Comparable Companies model is based on application of valuation multiples from publicly traded comparable companies to the financials of the subject company. Adjustments may be made to the market-derived valuation multiples based on differences between the comparable companies and the subject company. Significant changes in the unobservable inputs would result in direct and proportional changes in the fair value of the security. These securities are categorized as Level 3 of the fair value hierarchy.
The Option Pricing Model is a commonly accepted method of allocating enterprise value across a capital structure. The method may be utilized when a capital structure includes multiple instruments with varying rights and preferences, there is no short term exit horizon, the nature of an exit event is unknown, or if the enterprise value is not sufficient to cover outstanding debt and preferred claims. The Option Pricing Model can also be used as a method to estimate enterprise value by ‘back-solving’ if there are recent indicative transactions for securities with the same issuer. The Option Pricing Model uses Black-Scholes option pricing, a generally accepted option model typically used to value call options, puts, warrants, and convertible preferred securities. Significant changes in unobservable inputs would result in direct changes in the fair value of the security. These securities are categorized as level 3 of the fair value hierarchy.
Securities may be valued based on purchase prices of privately negotiated transactions. Significant changes in the unobservable inputs would result in direct and proportional changes in the fair value of the security. These securities are categorized as Level 3 of the fair value hierarchy.
112 |
PIMCO CLOSED-END FUNDS |
| June 30, 2026 |
Short-term debt instruments (such as commercial paper, time deposits and certificates of deposit) having a remaining maturity of 60 days or less may be valued at amortized cost, so long as the amortized cost value of such short-term debt instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or
Level 3 of the fair value hierarchy depending on the source of the base price.
When a fair valuation method is applied by PIMCO that uses significant unobservable inputs, investments will be priced by a method that the Valuation Designee believes reflects fair value and are categorized as Level 3 of the fair value hierarchy.
4. SECURITIES AND OTHER INVESTMENTS
(a) Investments in Affiliates
Each Fund may invest in the PIMCO Short Asset Portfolio and the PIMCO Short-Term Floating NAV Portfolio III (“Central Funds”) to the extent permitted by the Act, rules thereunder or exemptive relief therefrom. The Central Funds are registered investment companies created for use solely by the series of the Trust and other series of registered investment companies advised by the Adviser, in connection with their cash management activities. The main investments of the Central Funds are money market and short maturity fixed income instruments. The Central Funds may incur expenses related to their investment activities, but do not pay Investment Advisory Fees or Supervisory and Administrative Fees to the Adviser. The Central Funds are considered to be affiliated with the Funds. A complete schedule of portfolio holdings for each affiliate fund is filed with the SEC for the first and third quarters of each fiscal year on Form ):
N-PORT
and is available at the SEC’s website at www.sec.gov. A copy of each affiliate fund’s shareholder report is also available at the SEC’s website at www.sec.gov, on the Funds’ website at www.pimco.com, or upon request, as applicable. The table below shows the Funds’ transactions in and earnings from investments in the affiliated funds for the period ended June 30, 2026 (amounts in thousands†
Investments in PIMCO Short-Term Floating NAV Portfolio III
Fund Name |
Market Value 06/30/2025 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change in Unrealized Appreciation (Depreciation) |
Market Value 06/30/2026 |
Dividend Income (1) |
Realized Net Capital Gain Distributions (1) |
||||||||||||||||||||||||||||
PIMCO Corporate & Income Opportunity Fund |
$ | 197,390 | $ | 1,708,214 | $ | (1,709,500 | ) | $ | 91 | $ | (52 | ) | $ | 196,143 | $ | 3,609 | $ | 0 | ||||||||||||||||||
PIMCO Corporate & Income Strategy Fund |
69,943 | 571,169 | (564,700 | ) | 10 | 0 | 76,422 | 1,266 | 0 | |||||||||||||||||||||||||||
PIMCO High Income Fund |
73,274 | 682,527 | (684,200 | ) | 31 | (9 | ) | 71,623 | 1,527 | 0 | ||||||||||||||||||||||||||
PIMCO Income Strategy Fund |
42,187 | 223,293 | (225,300 | ) | 19 | (4 | ) | 40,195 | 1,594 | 0 | ||||||||||||||||||||||||||
PIMCO Income Strategy Fund II |
31,928 | 547,558 | (522,000 | ) | 7 | 3 | 57,496 | 754 | 0 | |||||||||||||||||||||||||||
† |
A zero balance may reflect actual amounts rounding to less than one thousand. |
(1) |
The tax characterization of distributions is determined in accordance with Federal income tax regulations and may contain a return of capital. The actual tax characterization of distributions received is determined at the end of the fiscal year of the affiliated fund. See Note 2, Significant Accounting Policies – Distributions – Common Shares, in the Notes to Financial Statements for more information. |
An affiliate includes any company in which a Fund owns 5% or more of the company’s outstanding voting shares. The table below represents transactions in and earnings from these affiliated issuers for the period ended June 30, 2026 (amounts in thousands, except number of shares).
†
PIMCO Corporate & Income Opportunity Fund
Security Name |
Market Value at 06/30/2025 |
Purchases at cost |
Proceeds from Sale |
Net Realized Gain/(Loss) |
Change in Unrealized Appreciation (Depreciation) |
Market Value at 06/30/2026 |
Dividend Income |
Shares Held at 06/30/2026 |
||||||||||||||||||||||||||||
Windstream Services LLC. |
$ | 0 | $ | 8,639 | $ | 0 | $ | 0 | $ | 7,604 | $ | 16,243 | $ | 0 | 1,416,163 | |||||||||||||||||||||
† |
A zero balance may reflect actual amounts rounding to less than one thousand. |
(b) Investments in Securities
The Funds may utilize the investments and strategies described below to the extent permitted by each Fund’s respective investment policies.
D
elayed-Delivery Transactions
involve a commitment by a Fund to purchase or sell securities for a predetermined price or yield, with
payment and delivery taking place beyond the customary settlement period. When delayed-delivery transactions are outstanding, the Fund will designate or receive as collateral liquid assets in an amount sufficient to meet the purchase price or respective obligations. When purchasing a security on a delayed-delivery basis, a Fund assumes the
ANNUAL REPORT |
| | JUNE 30, 2026 | 113 |
Notes to Financial Statements |
(Cont.) |
rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its NAV. The Funds may dispose of or renegotiate a delayed-delivery transaction after it is entered into, which may result in a realized gain (loss). When a Fund has sold a security on a delayeddelivery basis, the Fund does not participate in future gains (losses) with respect to the security.
I
nflation-Indexed Bonds
are fixed income securities whose principal value is periodically adjusted according to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statements of Operations, even though investors do not receive their principal until maturity. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury Inflation-Protected Securities (“TIPS”). For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.
L
oans and Other Indebtedness, Loan Participations and Assignments
are direct debt instruments which are interests in amounts owed to lenders or lending syndicates by corporate, governmental or other borrowers. A Fund’s investments in loans may be in the form of direct investments, participations in loans or assignments of all or a portion of loans from third parties or exposure to investments in loans through investments in a mutual fund or other pooled investment vehicle. A loan is often administered by a bank or other financial institution (the “agent”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. A Fund may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. A Fund generally has no right to enforce compliance with the terms of the loan agreement with the borrower. As a result, a Fund may be subject to the credit risk of both the borrower and the agent that is selling the loan agreement.
In the event of the insolvency of the agent selling a participation, a Fund may be treated as a general creditor of the agent and may not benefit from any
set-off
between the agent and the borrower. When a Fund purchases assignments from agents it acquires direct rights against the borrowers of the loans. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing through, for example, the issuance of bonds, frequently high yield bonds issued for the purpose of acquisitions. Investments in loans are generally subject to risks similar to those of investments in other types of debt obligations, including, among others, credit risk, interest rate risk, variable and floating rate securities risk, and risks associated with mortgage-related securities. In addition, in many cases loans are subject to the risks associated with below-investment grade securities. The Funds may be subject to heightened or additional risks and potential liabilities and costs by investing in mezzanine and other subordinated loans, including those arising under bankruptcy, fraudulent conveyance, equitable subordination, environmental and other laws and regulations, and risks and costs associated with debt servicing and taking foreclosure actions associated with the loans.
Additionally, because loans are not ordinarily registered with the SEC or any state securities commission or listed on any securities exchange, there is usually less publicly available information about such instruments. In addition, loans may not be considered “securities” for purposes of the anti-fraud provisions under the federal securities laws and, as a result, as a purchaser of these instruments, a Fund may not be entitled to the anti-fraud protections of the federal securities laws. In the course of investing in such instruments, a Fund may come into possession of material nonpublic information and, because of prohibitions on trading in securities of issuers while in possession of such information, the Fund may be unable to enter into a transaction in a publicly-traded security of that issuer when it would otherwise be advantageous for the Fund to do so. Alternatively, a Fund may choose not to receive material nonpublic information about an issuer of such loans, with the result that the Fund may have less information about such issuers than other investors who transact in such assets.
The types of loans and related investments in which the Funds may invest include, among others, senior loans, subordinated loans (including second lien loans,
B-Notes
and mezzanine loans), whole loans, commercial real estate and other commercial loans and structured loans. The Funds may acquire direct interests in loans through primary loan distributions and/or in private transactions. In the case of subordinated loans, there may be significant indebtedness ranking ahead of the borrower’s obligation to the holder of such a loan, including in the event of the borrower’s insolvency. Mezzanine loans are typically secured by a pledge of an equity interest in the mortgage borrower that owns the real estate rather than an interest in a mortgage. Certain Funds may also seek to originate loans, including, without limitation, residential and/or commercial real estate or mortgage-related loans, consumer loans or other types of loans, which may be in the form of whole loans, secured and unsecured notes, senior and second lien loans, mezzanine loans or similar investments. The Funds may originate loans to corporations and/or other legal entities and individuals, including foreign
(non-U.S.)
entities and individuals. 114 |
PIMCO CLOSED-END FUNDS |
| June 30, 2026 |
The Funds may acquire residential mortgage loans and unsecured consumer loans through a Subsidiary. Subsidiaries directly holding a beneficial interest in loans will be formed as domestic common law or statutory trusts with a federally chartered bank serving as trustee. Each such Subsidiary will hold the beneficial interests of loans and the federally chartered bank acting as trustee will hold legal title to the loans for the benefit of the Subsidiary and/or the trust’s beneficial owners (i.e., the Funds or its direct or indirect fully-owned subsidiary). State licensing laws typically exempt federally chartered banks from their licensing requirements, and federally chartered banks may also benefit from federal preemption of state laws, including any licensing requirements. The use of common law or statutory trusts with a federally chartered bank serving as trustee is intended to address any state licensing requirements that may be applicable to purchasers or holders of loans, including state licensing requirements related to foreclosure. The Funds believe that such direct or indirect fully-owned Subsidiaries will not be treated as associations or publicly traded partnerships taxable as corporations for U.S. federal income tax purposes, and that therefore, the Subsidiaries will not be subject to U.S. federal income tax at the subsidiary level. Investments in residential mortgage loans or unsecured consumer loans through entities that are not so treated can potentially be limited by the Funds’ intention to qualify as a regulated investment company, and limit the Funds’ ability to qualify as such.
If a Fund or a Subsidiary of a Fund is required to be licensed in any particular jurisdiction in order to acquire, hold, dispose or foreclose loans, obtaining the required license may not be viable (because, for example, it is not possible or practical) and the Fund or its Subsidiary may be unable to restructure its holdings to address the licensing requirement. In that case, a Fund or a Subsidiary of a Fund may be forced to cease activities involving the affected loans or may be forced to sell such loans. If a state regulator or court were to determine that a Fund or a Subsidiary of a Fund acquired, held or foreclosed a loan without a required state license, the Fund or Subsidiary could be subject to penalties or other sanctions, prohibited or restricted in its ability to enforce its rights under the loan, or subject to litigation risk or other losses or damages.
Investments in loans may include unfunded loan commitments, which are contractual obligations for future funding. Unfunded loan commitments may include revolving credit facilities, which may obligate a Fund to supply additional cash to the borrower on demand. Unfunded loan commitments represent a future obligation in full, even though a percentage of the committed amount may not be utilized by the borrower. When investing in a loan participation, a Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the agent selling the loan agreement and only upon receipt of payments by the agent from the borrower. A Fund may
receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan. In certain circumstances, a Fund may receive a penalty fee upon the prepayment of a loan by a borrower. Fees earned or paid are recorded as a component of interest income or interest expense, respectively, on the Statements of Operations. Unfunded loan commitments, if any, are reflected as a liability on the Statements of Assets and Liabilities.
M
ortgage-Related and Other Asset-Backed Securities
directly or indirectly represent a participation in, or are secured by and payable from, loans on real property. Mortgage-related securities are interests in pools of residential or commercial mortgage loans, including mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. These securities typically provide a monthly payment which consists of both principal and interest payments. Interest may be determined by fixed or adjustable rates. In times of declining interest rates, there is a greater likelihood that a Fund’s higher yielding securities will be loans and litigation finance loans. The Funds may invest in any level of the capital structure of an issuer of mortgage-backed or asset-backed securities, including the equity or “first loss” tranche.
pre-paid
with the Fund being unable to reinvest the proceeds in an investment with as great a yield. The rate of prepayments on underlying mortgages will affect the price and volatility of a mortgage-related security, and may have the effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. Interest-only and principal-only securities are especially sensitive to interest rate changes, which can affect not only their prices but can also change the income flows and repayment assumptions about those investments. The timely payment of principal and interest of certain mortgage-related securities is guaranteed with the full faith and credit of the U.S. Government. Pools created and guaranteed by non-governmental
issuers, including government-sponsored corporations, may be supported by various forms of insurance or guarantees, but there can be no assurance that private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Many of the risks of investing in mortgage-related securities secured by commercial mortgage loans reflect the effects of local and other economic conditions on real estate markets, the ability of tenants to make lease payments, and the ability of a property to attract and retain tenants. These securities may be less liquid and may exhibit greater price volatility than other types of mortgage-related or other asset-backed securities. Other asset-backed securities are created from many types of assets, including, but not limited to, auto loans, accounts receivable, such as credit card receivables and hospital account receivables, home equity loans, student loans, boat loans, mobile home loans, recreational vehicle loans, manufactured housing loans, aircraft leases, computer leases syndicated bank loans, peer-to-peer
ANNUAL REPORT |
| | JUNE 30, 2026 | 115 |
Notes to Financial Statements |
(Cont.) |
C
ollateralized Debt Obligations
(“CDOs”) include Collateralized Bond Obligations (“CBOs”), Collateralized Loan Obligations (“CLOs”) and other similarly structured securities. CBOs, CLOs and other CDOs are types of asset-backed securities. A CBO is a trust which is typically backed by a diversified pool of high risk, below investment grade fixed income securities. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. Other CDOs are trusts backed by other types of assets representing obligations of various parties. For both CBOs and CLOs, the cash flows from the trust are split into two or more portions, called tranches, varying in risk and yield. The riskiest portion is the “equity” tranche which bears the bulk of defaults from the bonds or loans in the trust and serves to protect the other, more senior tranches from default in all but the most severe circumstances. Since it is partially protected from defaults, a senior tranche from a CBO trust or CLO trust typically has higher ratings and lower yields than the underlying securities, and can be rated investment grade. Despite the protection from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults and aversion to CBO or CLO securities as a class. The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the CDO in which a Fund invests, CBOs, CLOs and other CDOs carry additional risks including, but not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments, (ii) the quality of the collateral may decline in value or default, (iii) risks related to the capability of the servicer of the securitized assets, (iv) the risk that a Fund may invest in CBOs, CLOs, or other CDOs that are subordinate to other classes, (v) the structure and complexity of the transaction and the legal documents may not be fully understood at the time of investment and could lead to disputes with the issuer or among investors regarding the characterization of proceeds or unexpected investment results, and (vi) the CDO’s manager may perform poorly.
Collateralized Mortgage Obligations
(“CMOs”) are debt obligations of a legal entity that are collateralized by whole mortgage loans or private mortgage bonds and divided into classes. CMOs are structured into multiple classes, often referred to as “tranches,” with each class bearing a different stated maturity and entitled to a different schedule for payments of principal and interest, including prepayments. CMOs may be less liquid and may exhibit greater price volatility than other types of mortgage-related or asset-backed securities.
As CMOs have evolved, some classes of CMO bonds have become more common. For example, a Fund may invest in
parallel-pay
and planned amortization class (“PAC”) CMOs and multi-class pass-through certificates.
Parallel-pay
CMOs and multi-class pass-through certificates are structured to provide payments of principal on each payment date to more than one class. These simultaneous payments are taken into account in calculating the stated maturity date or final distribution date of each class, which, as with other CMO and multi-class pass-through structures, must be retired by its stated maturity date or final distribution date but may be retired earlier. PACs generally require payments of a specified amount of principal on each payment date. PACs are parallel-pay
CMOs with the required principal amount on such securities having the highest priority after interest has been paid to all classes. Any CMO or multi-class pass-through structure that includes PAC securities must also have support tranches — known as support bonds, companion bonds or non-PAC
bonds — which lend or absorb principal cash flows to allow the PAC securities to maintain their stated maturities and final distribution dates within a range of actual prepayment experience. These support tranches are subject to a higher level of maturity risk compared to other mortgage-related securities, and usually provide a higher yield to compensate investors. If principal cash flows are received in amounts outside a pre-determined
range such that the support bonds cannot lend or absorb sufficient cash flows to the PAC securities as intended, the PAC securities are subject to heightened maturity risk. A Fund may invest in various tranches of CMO bonds, including support bonds and equity or “first loss” tranches (see “Collateralized Debt Obligations” above). S
tripped Mortgage-Backed Securities
(“SMBS”) are derivative multi-class mortgage securities. SMBS are usually structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. An SMBS will have one class that will receive all of the interest (the interest-only or “IO” class), while the other class will receive the entire principal (the principal-only or “PO” class). IOs and POs can be extremely volatile in response to changes in interest rates. As interest rates rise and fall, the value of IOs tends to move in the same direction as interest rates. POs perform best when prepayments on the underlying mortgages rise since this increases the rate at which the principal is returned and the yield to maturity on the PO. When payments on mortgages underlying a PO are slower than anticipated, the life of the PO is lengthened and the yield to maturity is reduced. The yield to maturity on an IO class is extremely sensitive to the rate of principal payments (including prepayments) on the related underlying mortgage assets, and a rapid rate of principal payments may have a material adverse effect on a Fund’s yield to maturity from these securities. If the underlying mortgage assets experience greater than anticipated prepayments of principal, the Funds may fail to recoup some or all of its initial investment in these securities even if the security is in one of the highest rating categories.
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PIMCO CLOSED-END FUNDS |
| June 30, 2026 |
Payments received for IOs are included in interest income on the Statements of Operations. Because no principal will be received at the maturity of an IO class, adjustments are made to the cost of the security on a monthly basis until maturity. These adjustments are included in interest income on the Statements of Operations. Payments received for POs are treated as reductions to the cost and par value of the securities.
P
ayment
In-Kind
Securities may give the issuer the option at each interest payment date of making interest payments in either cash and/or additional debt securities. Those additional debt securities usually have the same terms, including maturity dates and interest rates, and associated risks as the original bonds. The daily market quotations of the original bonds may include the accrued interest (referred to as a dirty price) and require a pro rata adjustment from the unrealized appreciation (depreciation) on investments to interest receivable on the Statements of Assets and Liabilities.
P
erpetual Bonds
are fixed income securities with no maturity date but pay a coupon in perpetuity (with no specified ending or maturity date). Unlike typical fixed income securities, there is no obligation for perpetual bonds to repay principal. The coupon payments, however, are mandatory. While perpetual bonds have no maturity date, they may have a callable date in which the perpetuity is eliminated and the issuer may return the principal received on the specified call date. Additionally, a perpetual bond may have additional features, such as interest rate increases at periodic dates or an increase as of a predetermined point in the future.
R
eal Estate Investment Trusts
(“REITs”)
are pooled investment vehicles that own, and typically operate, income-producing real estate. If a REIT meets certain requirements, including distributing to shareholders substantially all of its taxable income (other than net capital gains), then it is generally not taxed on the income distributed to shareholders. Distributions received from REITs may be characterized as income, capital gain or a return of capital. A return of capital is recorded by a Fund as a reduction to the cost basis of its investment in the REIT. REITs are subject to management fees and other expenses, and so the Funds that invest in REITs will bear their proportionate share of the costs of the REITs’ operations.
R
estricted
Investments
are subject to legal or contractual restrictions on resale and may generally be sold privately, but may be required to be registered or exempted from such registration before being sold to the public. Private placement securities are generally considered to be restricted except for those securities traded between qualified institutional investors under the provisions of Rule 144A of the Securities Act of 1933, as amended. Disposal of restricted investments may involve time-consuming negotiations and expenses, and prompt
sale at an acceptable price may be difficult to achieve. Restricted investments held by the Funds as of June 30, 2026, as applicable, are disclosed in the Notes to Schedules of Investments.
S
ecurities Issued by U.S. Government Agencies or Government-Sponsored Enterprises
are obligations of and, in certain cases, guaranteed by, the U.S. Government, its agencies or instrumentalities. The U.S. Government does not guarantee the NAV of a Fund’s shares Some U.S. Government securities, such as Treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association, are supported by the full faith and credit of the U.S. Government; others, such as those of the Federal Home Loan Banks, are supported by the right of the issuer to borrow from the U.S. Department of the Treasury (the “U.S. Treasury”); and others, such as those of the Federal National Mortgage Association (“FNMA” or “Fannie Mae”), are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations. U.S. Government securities may include zero coupon securities, which do not distribute interest on a current basis and tend to be subject to greater risk than interest-paying securities of similar maturities.
Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). FNMA is a government-sponsored corporation. FNMA purchases conventional (i.e., not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks, credit unions and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA but are not backed by the full faith and credit of the U.S. Government. FHLMC is a government sponsored corporation that issues Participation Certificates (“PCs”), which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit of the U.S. Government. Instead, they are supported only by the discretionary authority of the U.S. Government to purchase the agency’s obligations.
In June 2019, FNMA and FHLMC started issuing Uniform Mortgage-Backed Securities in place of their current offerings of
TBA-eligible
securities (the “Single Security Initiative”). The Single Security Initiative seeks to support the overall liquidity of the TBA market and aligns the characteristics of FNMA and FHLMC certificates. The long-term effects that the Single Security Initiative may have on the market for TBA and other mortgage-backed securities are uncertain. ANNUAL REPORT |
| | JUNE 30, 2026 | 117 |
Notes to Financial Statements |
(Cont.) |
Roll-timing
strategies can be used where a Fund seeks to extend the expiration or maturity of a position, such as a TBA security on an underlying asset, by closing out the position before expiration and contemporaneously opening a new position with respect to substantially the same underlying asset with a later expiration date. TBA securities purchased or sold are reflected on the Statements of Assets and Liabilities as an asset or liability, respectively. Recently finalized FINRA rules include mandatory margin requirements for the TBA market that require the Funds to post collateral in connection with their TBA transactions. There is no similar requirement applicable to the Funds’ TBA counterparties. The required collateralization of TBA trades could increase the cost of TBA transactions to the Funds and impose added operational complexity. S
eparate Trading of Registered Interest and Principal of Securities
(“STRIPS”) are U.S. Treasury fixed income securities in which the principal is separated, or stripped, from the interest and each takes the form of zero coupon securities. A STRIP is sold at a significant discount to face value and offers no interest payments; rather, investors receive payment at maturity. Zero coupon securities do not distribute interest on a current basis and tend to be subject to greater risk than interest-paying securities.
W
arrants
are securities that are usually issued together with a debt security or preferred security and that give the holder the right to buy a proportionate amount of common stock at a specified price. Warrants normally have a life that is measured in years and entitle the holder to buy common stock of a company at a price that is usually higher than the market price at the time the warrant is issued. Warrants may entail greater risks than certain other types of investments. Generally, warrants do not carry the right to receive dividends or exercise voting rights with respect to the underlying securities, and they do not represent any rights in the assets of the issuer. In addition, their value does not necessarily change with the value of the underlying securities, and they cease to have value if they are not exercised on or before their expiration date. If the market price of the underlying stock does not exceed the exercise price during the life of the warrant, the warrant will expire worthless. Warrants may increase the potential profit or loss to be realized from the investment as compared with investing the same amount in the underlying securities. Similarly, the percentage increase or decrease in the value of an equity security warrant may be greater than the percentage increase or decrease in the value of the underlying common stock. Warrants may relate to the purchase of equity or debt securities. Debt obligations with warrants attached to purchase equity securities have many characteristics of convertible securities and their prices may, to some degree, reflect the performance of the underlying stock. Debt obligations also may be issued with warrants attached to purchase additional debt securities at the same coupon rate. A decline
in interest rates would permit a Fund to sell such warrants at a profit. If interest rates rise, these warrants would generally expire with no value.
W
hen-Issued
Transactions are purchases or sales made on a whenissued basis. These transactions are made conditionally because a security, although authorized, has not yet been issued in the market. Transactions to purchase or sell securities on a when-issued basis involve a commitment by a Fund to purchase or sell these securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. A Fund may sell when-issued securities before they are delivered, which may result in a realized gain (loss).
5. BORROWINGS AND OTHER FINANCING TRANSACTIONS
The Funds may enter into the borrowings and other financing transactions described below to the extent permitted by each Fund’s respective investment policies.
The following disclosures contain information on a Fund’s ability to lend or borrow cash or securities to the extent permitted under the Act, which may be viewed as borrowing or financing transactions by a Fund. The location of these instruments in each Fund’s financial statements is described below.
(a
)
R
epurchase Agreements
Under the terms of a typical repurchase agreement, a Fund purchases an underlying debt obligation (collateral) subject to an obligation of the seller to repurchase, and a Fund to resell, the obligation at an agreed-upon price and time. In an open maturity repurchase agreement, there is no
pre-determined
repurchase date and the agreement can be terminated by a Fund or counterparty at any time. The underlying securities for all repurchase agreements are held by a Fund’s custodian or designated subcustodians (in the case of tri-party
repurchase agreements). Traditionally, a Fund has used bilateral repurchase agreements wherein the underlying securities will be held by a Fund’s custodian. The market value of the collateral must be equal to or exceed the total amount of the repurchase obligations, including interest. Repurchase agreements, if any, including accrued interest, are included on the Statements of Assets and Liabilities. Interest earned is recorded as a component of interest income on the Statements of Operations. In periods of increased demand for collateral, a Fund may pay a fee for the receipt of collateral, which may result in interest expense to a Fund. (
b)
R
everse Repurchase Agreements
In a reverse repurchase agreement, a Fund delivers a security in exchange for cash to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed-upon price and date. In an open maturity reverse repurchase
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| June 30, 2026 |
agreement, there is no
pre-determined
repurchase date and the agreement can be terminated by a Fund or counterparty at any time. A Fund is entitled to receive principal and interest payments, if any, made on the security delivered to the counterparty during the term of the agreement. Cash received in exchange for securities delivered plus accrued interest payments to be made by a Fund to counterparties are reflected as a liability on the Statements of Assets and Liabilities. Interest payments made by a Fund to counterparties are recorded as a component of interest expense on the Statements of Operations. In periods of increased demand for the security, a Fund may receive a fee for use of the security by the counterparty, which may result in interest income to a Fund. In the event the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, a Fund’s use of the proceeds of the agreement may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce a Fund’s obligation to repurchase the securities. Reverse repurchase agreements involve leverage risk and also the risk that the market value of the securities to be repurchased may decline below the repurchase price. 6. FINANCIAL DERIVATIVE INSTRUMENTS
The Funds may enter into the financial derivative instruments described below to the extent permitted by each Fund’s respective investment policies.
The following disclosures contain information on how and why the Funds use financial derivative instruments, and how financial derivative instruments affect the Funds’ financial position, results of operations and cash flows. The location and fair value amounts of these instruments on the Statements of Assets and Liabilities and the net realized gain (loss) and net change in unrealized appreciation (depreciation) on the Statements of Operations, each categorized by type of financial derivative contract and related risk exposure, are included in a table in the Notes to Schedules of Investments. The financial derivative instruments outstanding as of period end and the amounts of net realized gain (loss) and net change in unrealized appreciation (depreciation) on financial derivative instruments during the period, as disclosed in the Notes to Schedules of Investments, serve as indicators of the volume of financial derivative activity for the Funds.
PIMCO Corporate & Income Opportunity Fund is subject to regulation as a commodity pool under the Commodity Exchange Act by the Commodity Futures Trading Commission (the “CFTC”). The Manager has registered with the CFTC as a Commodity Pool Operator and a Commodity Trading Adviser with respect to the Fund, and is a member of the National Futures Association. As a result, additional CFTC-mandated disclosure, reporting and recordkeeping obligations apply to PIMCO Corporate & Income Opportunity Fund.
(a
)
F
orward Foreign Currency Contracts
may be engaged, in connection with settling planned purchases or sales of securities, to hedge the currency exposure associated with some or all of a Fund’s securities or as part of an investment strategy. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked to market daily, and the change in value is recorded by a Fund as an unrealized gain (loss). Realized gains (losses) are equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed and are recorded upon delivery or receipt of the currency. The contractual obligations of a buyer or seller of a forward foreign currency contract may generally be satisfied by taking or making physical delivery of the underlying currency, establishing an opposite position in the contract and recognizing the profit or loss on both positions simultaneously on the delivery date or, in some instances, paying a cash settlement before the designated date of delivery. These contracts may involve market risk in excess of the unrealized gain (loss) reflected on the Statements of Assets and Liabilities. Although forwards may be intended to minimize the risk of loss due to a decline in the value of the hedged currencies, at the same time, they tend to limit any potential gain which might result should the value of such currencies increase. In addition, a Fund could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if the value of the currency changes unfavorably to the U.S. dollar. To mitigate such risk, cash or securities may be exchanged as collateral pursuant to the terms of the underlying contract.
(
b
)
F
utures Contracts
are agreements to buy or sell a security or other asset for a set price on a future date and are traded on an exchange. A Fund may use futures contracts to manage its exposure to the securities markets or to movements in interest rates and currency values. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by a Fund and the prices of futures contracts and the possibility of an illiquid market. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, a Fund is required to deposit with its futures broker an amount of cash, U.S. Government and Agency Obligations, or select sovereign debt, in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and based on such movements in the price of the contracts, an appropriate payable or receivable for the change in value may be posted or collected by a Fund (“Futures Variation Margin”). Futures Variation Margins, if any, are disclosed within centrally cleared financial derivative instruments on the Statements of Assets and Liabilities. Gains (losses) are recognized but not considered realized until the
ANNUAL REPORT |
| | JUNE 30, 2026 | 119 |
Notes to Financial Statements |
(Cont.) |
contracts expire or close. Futures contracts involve, to varying degrees, risk of loss in excess of the Futures Variation Margin included within exchange-traded or centrally cleared financial derivative instruments on the Statements of Assets and Liabilities.
(
c)
S
wap Agreements
are bilaterally negotiated agreements between a Fund and a counterparty to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap agreements may be privately negotiated in the over the counter market (“OTC swaps”) or may be cleared through a third party, known as a central counterparty or derivatives clearing organization (“Centrally Cleared Swaps”). A Fund may enter into asset, credit default, cross-currency, interest rate, total return, variance and other forms of swap agreements to manage its exposure to credit, currency, interest rate, commodity, equity and inflation risk. In connection with these agreements, securities or cash may be identified as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency.
Centrally Cleared Swaps are marked to market daily based upon valuations as determined from the underlying contract or in accordance with the requirements of the central counterparty or derivatives clearing organization. Changes in market value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Statements of Operations. Daily changes in valuation of centrally cleared swaps, if any, are disclosed within centrally cleared financial derivative instruments on the Statements of Assets and Liabilities. Centrally Cleared and OTC swap payments received or paid at the beginning of the measurement period are included on the Statements of Assets and Liabilities and represent premiums paid or received upon entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Upfront premiums received (paid) are initially recorded as liabilities (assets) and subsequently marked to market to reflect the current value of the swap. These upfront premiums are recorded as realized gain (loss) on the Statements of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination of the swap is recorded as realized gain (loss) on the Statements of Operations. Net periodic payments received or paid by a Fund are included as part of realized gain (loss) on the Statements of Operations.
For purposes of a Fund’s investment policy adopted pursuant to Rule
35d-1
under the Act (if any), the Fund will account for derivative instruments at market value. For purposes of applying a Fund’s other investment policies and restrictions, swap agreements, like other derivative instruments, may be valued by a Fund at market value, notional value or full exposure value. In the case of a credit default swap, in applying certain of a Fund’s investment policies and restrictions, the Funds will value the credit default swap at its notional value or its full exposure value (i.e., the sum of the notional amount for the contract plus the market value), but may value the credit default swap at market value for purposes of applying certain of a Fund’s other investment policies and restrictions. For example, a Fund may value credit default swaps at full exposure value for purposes of a Fund’s credit quality guidelines (if any) because such value in general better reflects a Fund’s actual economic exposure during the term of the credit default swap agreement. As a result, a Fund may, at times, have notional exposure to an asset class (before netting) that is greater or lesser than the stated limit or restriction noted in a Fund’s prospectus. In this context, both the notional amount and the market value may be positive or negative depending on whether a Fund is selling or buying protection through the credit default swap. The manner in which certain securities or other instruments are valued by a Fund for purposes of applying investment policies and restrictions may differ from the manner in which those investments are valued by other types of investors.
Entering into swap agreements involves, to varying degrees, elements of interest, credit, market and documentation risk in excess of the amounts recognized on the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may fail to perform or meet an obligation or disagree as to the meaning of contractual terms in the agreements and that there may be unfavorable changes in interest rates or the values of the asset upon which the swap is based.
A Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive. The risk may be mitigated by having a master netting arrangement between a Fund and the counterparty and by the posting of collateral to a Fund to cover a Fund’s exposure to the counterparty.
To the extent a Fund has a policy to limit the net amount owed to or to be received from a single counterparty under existing swap agreements, such limitation only applies to counterparties to OTC swaps and does not apply to centrally cleared swaps where the counterparty is a central counterparty or derivatives clearing organization.
Credit Default Swap Agreements
on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues are entered into to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where a
120 |
PIMCO CLOSED-END FUNDS |
| June 30, 2026 |
Fund owns or has exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event that the referenced entity, obligation or index, as specified in the swap agreement, undergoes a certain credit event. As a seller of protection on credit default swap agreements, a Fund will generally receive from the buyer of protection a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, a Fund would effectively add leverage to its portfolio because, in addition to its total net assets, a Fund would be subject to investment exposure on the notional amount of the swap.
If a Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, a Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If a Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, a Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The ability to deliver other obligations may result in a option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event).
cheapest-to-deliver
Credit default swap agreements on corporate or sovereign issues involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a default or other credit event. If a credit event occurs and cash settlement is not elected, a variety of other deliverable obligations may be delivered in lieu of the specific referenced obligation. The ability to
deliver other obligations may result in a option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event).
cheapest-to-deliver
Credit default swap agreements on asset-backed securities involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event that the referenced entity, obligation or index, as specified in the agreement, undergoes a certain credit event. Unlike credit default swaps on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues, deliverable obligations in most instances would be limited to the specific referenced obligation, or in some cases, specific tranches of the specified reference obligation, as performance for asset-backed securities can vary across deals. Prepayments, principal paydowns, and other writedown or loss events on the underlying mortgage loans will reduce the outstanding principal balance of the referenced obligation. These reductions may be temporary or permanent as defined under the terms of the swap agreement and the notional amount for the swap agreement will be adjusted by corresponding amounts. A Fund may use credit default swaps on asset-backed securities to provide a measure of protection against defaults of the referenced obligation or to take an active long or short position with respect to the likelihood of a particular referenced obligation’s default.
Credit default swap agreements on credit indexes involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indexes are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indexes may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging markets and/or various credit ratings within each sector. Credit indexes are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indexes changes periodically, usually every six months, and for most indexes, each name has an equal weight in the index. Credit default swaps on credit indexes may be used to hedge a portfolio of credit default swaps or bonds, which is less expensive than it would be to buy many credit default swaps to achieve a similar effect. Credit default swaps on indexes are instruments for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality.
ANNUAL REPORT |
| | JUNE 30, 2026 | 121 |
Notes to Financial Statements |
(Cont.) |
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues as of period end, if any, are disclosed in the Notes to Schedules of Investments. They serve as an indicator of the current status of payment/performance risk and represent the likelihood or risk of default for the reference entity. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. For credit default swap agreements on asset-backed securities and credit indexes, the quoted market prices and resulting values, as well as the annual payment rate, serve as an indication of the current status of the payment/performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.
The maximum potential amount of future payments (undiscounted) that a Fund as a seller of protection could be required to make under a credit default swap agreement equals the notional amount of the agreement. Notional amounts of each individual credit default swap agreement outstanding as of period end for which a Fund is the seller of protection are disclosed in the Notes to Schedules of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by a Fund for the same referenced entity or entities.
Interest Rate Swap Agreements
may be entered into to help hedge against interest rate risk exposure as the value of the fixed rate bonds that the Funds hold may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, a Fund may enter into interest rate swap agreements. Interest rate swap agreements involve the exchange by a Fund with another party for their respective commitment to pay or receive interest on the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”, (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”, (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice
versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the buyer pays an upfront fee in consideration for the right to early terminate the swap transaction in whole, at zero cost and at a predetermined date and time prior to the maturity date, (v) spreadlocks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and a specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different segments of money markets.
T
otal Return Swap Agreements
are entered into to gain or mitigate exposure to the underlying reference asset. Total return swap agreements involve commitments where single or multiple cash flows are exchanged based on the price of an underlying reference asset and on a fixed or variable interest rate. Total return swap agreements may involve commitments to pay interest in exchange for a market-linked return. One counterparty pays out the total return of a specific underlying reference asset, which may include a single security, a basket of securities, or an index, and in return receives a fixed or variable rate. At the maturity date, a net cash flow is exchanged where the total return is equivalent to the return of the underlying reference asset less a financing rate, if any. As a receiver, a Fund would receive payments based on any net positive total return and would owe payments in the event of a net negative total return. As the payer, a Fund would owe payments on any net positive total return and would receive payments in the event of a net negative total return.
7. PRINCIPAL AND OTHER RISKS
(a) Principal Risks
In the normal course of business, the Funds trade financial instruments and enter into financial transactions where risk of potential loss exists.
See below for a summary of select principal risks associated with investments in the Funds. For a complete list of the principal risks the Funds may be subject to, please see the Principal Risks of the Funds section of this report.
122 |
PIMCO CLOSED-END FUNDS |
| June 30, 2026 |
PIMCO Corporate & Income Opportunity Fund (PTY) |
PIMCO Corporate & Income Strategy Fund (PCN) |
PIMCO High Income Fund (PHK) |
PIMCO Income Strategy Fund (PFL) |
PIMCO Income Strategy Fund II (PFN) | ||||||||||
Asset Allocation |
X | X | X | X | X | |||||||||
Call |
X | X | X | X | X | |||||||||
Collateralized Bond Obligations, Collateralized Loan Obligations and Collateralized Debt Obligations |
— | X | X | — | — | |||||||||
Collateralized Loan Obligations |
X | X | — | X | X | |||||||||
Confidential Information Access |
X | X | X | X | X | |||||||||
Contingent Convertible Securities |
X | X | X | X | X | |||||||||
Convertible Securities |
X | X | X | X | X | |||||||||
Counterparty |
X | X | X | X | X | |||||||||
“Covenant-lite” Obligations |
X | X | X | X | X | |||||||||
Credit Default Swaps |
X | X | X | X | X | |||||||||
Credit |
X | X | X | X | X | |||||||||
Currency |
X | X | X | X | X | |||||||||
Cyber Security |
X | X | X | X | X | |||||||||
Debt Securities |
X | X | X | X | X | |||||||||
Derivatives |
X | X | X | X | X | |||||||||
Distressed and Defaulted Securities |
X | X | X | X | X | |||||||||
Distribution Rate |
X | X | X | X | X | |||||||||
Emerging Markets |
X | X | X | X | X | |||||||||
Equity Securities and Related Market |
X | X | X | X | X | |||||||||
Focused Investment |
X | X | X | X | X | |||||||||
Foreign (Non-U.S.) Investment |
X | X | X | X | X | |||||||||
Foreign Loan Originations |
X | X | X | X | X | |||||||||
High Yield Securities |
X | X | X | X | X | |||||||||
Inflation/Deflation |
X | X | X | X | X | |||||||||
Inflation-Indexed Security |
X | X | X | X | X | |||||||||
Insurance-Linked and Other Instruments |
X | X | X | X | X | |||||||||
Interest Rate |
X | X | X | X | X | |||||||||
Issuer |
X | X | X | X | X | |||||||||
Leverage |
X | X | X | X | X | |||||||||
Liquidity |
X | X | X | X | X | |||||||||
Loan Origination |
X | X | X | X | X | |||||||||
Loans and Other Indebtedness; Loan Acquisitions, Participations and Assignments |
X | X | X | X | X | |||||||||
Management |
X | X | X | X | X | |||||||||
Market |
X | X | X | X | X | |||||||||
Market Discount |
X | X | X | X | X | |||||||||
Market Disruptions |
X | X | X | X | X | |||||||||
Mortgage-Related and Other Asset-Backed Instruments |
X | X | X | X | X | |||||||||
Mortgage-Related Derivative Instruments |
X | X | X | X | X | |||||||||
Municipal Bond |
— | X | — | — | — | |||||||||
Operational |
X | X | X | X | X | |||||||||
Other Investment Companies |
X | X | X | X | X | |||||||||
Platform |
— | — | X | — | — | |||||||||
Portfolio Turnover |
X | X | X | X | X | |||||||||
Potential Conflicts of Interest — Allocation of Investment Opportunities |
X | X | X | X | X | |||||||||
Preferred Securities |
X | X | X | X | X | |||||||||
Privacy and Data Security |
X | X | X | X | X | |||||||||
Private Placement and Restricted Securities |
X | X | X | X | X | |||||||||
Privately-Issued Mortgage-Related Securities |
X | X | X | X | X | |||||||||
Real Estate |
X | X | X | X | X | |||||||||
Regulatory Changes |
X | X | X | X | X | |||||||||
Regulatory — Commodity Pool Operator |
X | X | X | X | X | |||||||||
Reinvestment |
X | X | X | X | X | |||||||||
ANNUAL REPORT |
| | JUNE 30, 2026 | 123 |
Notes to Financial Statements |
(Cont.) |
PIMCO Corporate & Income Opportunity Fund (PTY) |
PIMCO Corporate & Income Strategy Fund (PCN) |
PIMCO High Income Fund (PHK) |
PIMCO Income Strategy Fund (PFL) |
PIMCO Income Strategy Fund II (PFN) | ||||||||||
REIT |
— | — | X | — | — | |||||||||
Repurchase Agreements |
X | X | X | X | X | |||||||||
Risk Retention Investment |
— | — | X | — | X | |||||||||
Securities Lending |
X | X | X | X | X | |||||||||
Senior Debt |
X | X | X | X | X | |||||||||
Short Exposure |
— | — | X | — | — | |||||||||
Smaller Company |
— | X | X | — | — | |||||||||
Sovereign Debt |
X | X | X | X | X | |||||||||
Special Purpose Acquisition Companies (“SPACs”) |
— | — | X | — | — | |||||||||
Structured Investments |
X | X | X | X | X | |||||||||
Subprime |
X | X | X | X | X | |||||||||
Subsidiary |
— | X | X | — | — | |||||||||
Synthetic Convertible Securities |
X | X | X | X | X | |||||||||
Tax |
X | X | X | X | X | |||||||||
U.S. Government Securities |
X | X | X | X | X | |||||||||
Valuation |
X | X | X | X | X | |||||||||
Zero-Coupon Bond, Step-Ups and Payment-in-Kind |
X | X | X | X | X | |||||||||
Asset Allocation Risk
is the risk that a Fund could experience losses as a result of less than optimal or poor asset allocation decisions. A Fund could miss attractive investment opportunities by underweighting markets that subsequently experience significant returns and could experience losses as a result of these allocation decisions, which could result in the Fund being underweight or overweight in sectors, asset classes, or geographies that perform differently than expected.
Call Risk
is the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality), and changes in the rate at which prepayments or redemptions occur can affect the return on investment of these securities. If an issuer calls a security in which a Fund has invested in, the Fund may not recoup the full amount of its initial investment or may not realize the full anticipated earnings from the investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.
Collateralized Bond Obligations, Collateralized Loan Obligations and Collateralized Debt Obligations Risk
is the risk that an investment in a CLO, CBO or other CDO depends largely on the type of the collateral securities and the class/tranche of the instrument in which the Fund invests. In addition to the normal risks associated with debt instruments (e.g., interest rate risk and credit risk), CLOs, CBOs and CDOs carry additional risks including, but not limited to: (i) the possibility that distributions from the collateral will not be adequate to
make interest or other payments; (ii) the risk that the quality of the collateral may decline in value or default; (iii) the risk that the Fund may invest in CBOs, CLOs or other CDOs that are subordinate to other classes; and (iv) the risk that the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or others and may produce unexpected investment results.
Collateralized Loan Obligations Risk
is the risk of investing in a trust typically collateralized by a pool of loans issued by banks, corporations or any other public or private entity or person, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans and subordinate or mezzanine loans, including loans that may be rated below investment grade or equivalent unrated loans (“Collateralized Loan Obligations Risk”). In addition to the normal risks associated with debt instruments (e.g., interest rate risk and credit risk), CLOs carry additional risks including, but not limited to: (i) the possibility that distributions from the collateral will not be adequate to make interest or other payments; (ii) the risk that the quality of the collateral may decline in value or default; (iii) the risk that the Fund may invest in CBOs, CLOs or other CDOs that are subordinate to other classes; and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or others and may produce unexpected investment results.
Confidential Information Access Risk
is the risk that, in managing a Fund (and other PIMCO clients), PIMCO may from time to time have the opportunity to receive material,
non-public
information (“Confidential Information”) about the issuers of certain investments, 124 |
PIMCO CLOSED-END FUNDS |
| June 30, 2026 |
including, without limitation, senior floating rate loans, other loans and related investments being considered for acquisition by a Fund or held in the Fund’s portfolio. If PIMCO intentionally or unintentionally comes into possession of Confidential Information, it may be unable, potentially for a substantial period of time, to purchase or sell investments to which such Confidential Information relates.
Contingent Convertible Securities Risk
is the risk of investing in contingent convertible securities, including the risk that interest payments may be cancelled by the issuer or a regulatory authority, the risk of ranking junior to other creditors in the event of a liquidation or other bankruptcy-related event as a result of holding subordinated debt, the risk of a Fund’s investment becoming further subordinated as a result of conversion from debt to equity, the risk of a Fund’s investment receiving less favorable treatment than equity of the issuer in certain situations, such as during periods of financial distress or regulatory intervention, the risk the principal amount due can be written down to a lesser amount (including potentially to zero), and the general risks applicable to fixed income investments, including interest rate risk, credit risk, market risk and liquidity risk, any of which could result in losses to a Fund.
Convertible Securities Risk
is the risk that the market values of convertible securities may decline as interest rates increase and, conversely, may increase as interest rates decline. Convertible securities are fixed income securities, preferred securities or other securities that are convertible into or exercisable for common stock of the issuer (or cash or securities of equivalent value) at either a stated price or a stated rate. Convertible debt securities pay interest and convertible preferred stocks pay dividends until they mature or are converted, exchanged or redeemed. A convertible security’s market value, however, tends to reflect the market price of the common stock of the issuing company when that stock price approaches or is greater than the convertible security’s “conversion price.” The conversion price is defined as the predetermined price at which the convertible security could be exchanged for the associated stock. Certain types of convertible securities may decline in value or lose their value entirely in the event the issuer’s financial condition becomes significantly impaired. As the market price of the underlying common stock declines, the price of the convertible security tends to be influenced more by the yield of the convertible security.
Thus, it may not decline in price to the same extent as the underlying common stock. In the event of a liquidation of the issuing company, holders of convertible securities may be paid before the company’s common stockholders but after holders of any senior debt obligations of the company. Consequently, the issuer’s convertible securities generally entail less risk than its common stock but more risk than its other debt obligations. Convertible securities are often rated below investment grade or not rated.
Counterparty Risk
is the risk that a Fund will be subject to credit risk with respect to the counterparties to the derivative contracts and other instruments entered into by a Fund or held by special purpose or structured vehicles in which a Fund invests. If a counterparty becomes bankrupt or otherwise fails to perform its obligations under a derivative contract due to financial difficulties, a Fund may experience significant delays in obtaining any recovery (including recovery of any collateral it has provided to the counterparty) in a dissolution, assignment for the benefit of creditors, liquidation,
winding-up,
bankruptcy, or other analogous proceeding. Counterparty credit risk also includes the related risk of having concentrated exposure to a single counterparty, which may increase potential losses if the counterparty were to become insolvent. “Covenant-lite” Obligations Risk
is the risk that covenant-lite obligations contain fewer maintenance covenants than other obligations, or no maintenance covenants, and may not include terms that allow the lender to monitor the performance of the borrower and declare a default if certain criteria are breached, which would allow the lender to restructure the loan or take other action intended to help mitigate losses. Covenant-lite loans carry a risk that the borrower could transfer or encumber its assets, which could reduce the amount of assets that can be used to satisfy debts and result in losses for debtholders. Covenant-lite loans may carry more risk than traditional loans as they allow individuals and corporations to engage in activities that would otherwise be difficult or impossible under a covenant-heavy loan agreement. In the event of default, covenant-lite loans may exhibit diminished recovery values as the lender may not have the opportunity to negotiate with the borrower prior to default.
Credit Default Swaps Risk
is the risk of investing in credit default swaps, including illiquidity risk, counterparty risk, leverage risk and credit risk. A buyer generally also will lose its investment and recover nothing should no credit event occur and the swap is held to its termination date. If a credit event were to occur, the value of any deliverable obligation received by the seller (if any), coupled with the upfront or periodic payments previously received, may be less than the full notional value it pays to the buyer, resulting in a loss of value to the seller. When a Fund acts as a seller of a credit default swap, it is exposed to many of the same risks of leverage described herein. As the seller, a Fund would receive a stream of payments over the term of the swap agreement provided that no event of default has occurred with respect to the referenced debt obligation upon which the swap is based. A Fund would effectively add leverage to its portfolio because, if a default occurs, the stream of payments may stop and, in addition to its total net assets, a Fund would be subject to investment exposure on the notional amount of the swap. In addition, selling credit default swaps may not be profitable for a Fund if no secondary market exists or
ANNUAL REPORT |
| | JUNE 30, 2026 | 125 |
Notes to Financial Statements |
(Cont.) |
the Fund is otherwise unable to close out these transactions at advantageous times.
Credit Risk
is the risk that a Fund could experience losses if the issuer or guarantor of a fixed income security (including a security purchased with securities lending collateral), the counterparty to a derivatives contract, or the issuer or guarantor of collateral, repurchase agreement or a loan of portfolio securities, is unable or unwilling, or is perceived (whether by market participants, rating agencies, pricing services or otherwise) as unable or unwilling, to make timely principal and/or interest payments or to otherwise honor its financial obligations. Credit risk also includes credit spread risk, which is the risk that credit spreads (i.e., the difference in yield between securities that is due to the difference in their actual or perceived credit quality) may increase when the market believes that investments generally have a greater risk of default.
Currency Risk
is the risk that foreign
(non-U.S.)
currencies may fluctuate in value relative to the U.S. dollar, which can affect the value of a Fund’s investments in foreign (non-U.S.)
currencies or in securities that trade in and receive revenues in, or derivatives that provide exposure to foreign (non-U.S.)
currencies, or other instruments that provide exposure to foreign (non-U.S.)
currencies may decline in value, due to the risk that those currencies may fluctuate in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will fluctuate in value relative to the currency being hedged. Currency risk may be particularly high to the extent that a Fund invests in foreign
(non-U.S.)
currencies or engages in foreign currency transactions that are economically tied to emerging market countries. These currency transactions may present market, credit, currency, liquidity, legal, political, headline, reputational and other risks different from, or greater than, the risks of investing in developed foreign (non-U.S.) currencies or engaging in foreign currency transactions that are economically tied to developed foreign countries. Cyber Security Risk
is the risk that, as the use of complex information technology and communication systems, including cloud-based technology, has become more prevalent and interconnected in the course of business, the Funds have become potentially more susceptible to operational and information security risks resulting from breaches in cyber security despite the efforts of PIMCO, a Fund, or their service providers to adopt technologies, processes, and practices intended to mitigate these risks. A breach in cyber security refers to both intentional and unintentional cyber events from outside threat actors or internal resources that may, among other things, cause a Fund to lose proprietary information, suffer data corruption and/or destruction or lose operational capacity, result in the unauthorized release or other misuse of confidential information or otherwise disrupt
normal business operations. Geopolitical tensions can increase the scale and sophistication of deliberate cybersecurity attacks, particularly those from nation-states or from entities with nation-state backing, who may desire to use cybersecurity attacks to cause damage or create leverage against geopolitical rivals. Cyber security failures or breaches may result in financial losses to a Fund and its shareholders.
These failures or breaches may also result in disruptions to business operations, potentially resulting in financial losses; interference with a Fund’s ability to calculate its net asset value, process shareholder transactions or otherwise transact business with shareholders; impediments to trading; violations of applicable privacy and other laws; regulatory fines; penalties; third-party claims in litigation; reputational damage; reimbursement or other compensation costs; additional compliance and cyber security risk management costs and other adverse consequences. In addition, substantial costs may be incurred in order to prevent any cyber incidents in the future. There is also a risk that cyber security breaches may not be detected. A Fund and its shareholders may suffer losses as a result of a cyber security breach related to the Fund, its service providers, trading counterparties or the issuers in which the Fund invests.
Debt Securities Risk is the risk that prices of bonds and other fixed income securities will generally increase as interest rates fall and decrease as interest rates rise. Income from a Fund’s portfolio may decline if the Fund invests the proceeds from matured, traded or called fixed income securities at market interest rates that are below the portfolio’s current earnings rate. The value of most bond funds and fixed income securities are impacted by changes in interest rates. Bonds and bond funds with longer durations tend to be more sensitive and more volatile than securities with shorter durations; bond prices generally fall as interest rates rise.
Derivatives Risk
is the risk of investing in derivative instruments (such as forwards, futures, options, swaps and structured securities) and other similar investments, including leverage, liquidity, interest rate, market, counterparty (including credit), operational, legal and management risks, and valuation complexity (including the risk of improper valuation), as well as the risks associated with the underlying asset, reference rate or index. Changes in the value of a derivative or other similar investments may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and a Fund could lose more than the initial amount invested. In addition, the use of derivatives may cause a Fund’s investment returns to be impacted by the performance of assets the Fund does not own, potentially resulting in the Fund’s total investment exposure exceeding the value of its portfolio.
126 |
PIMCO CLOSED-END FUNDS |
| June 30, 2026 |
Changes in the value of a derivative or other similar investments may also create margin delivery or settlement payment obligations for a Fund. A Fund’s use of derivatives or other similar investments may result in losses to the Fund, a reduction in the Fund’s returns and/or increased volatility.
Non-centrally
cleared over-the-counter
non-centrally
cleared OTC derivatives or other similar investments. The primary credit risk on derivatives or other similar investments that are exchange-traded or traded through a central clearing counterparty resides with a Fund’s clearing broker, or the clearinghouse. Changes in regulations relating to a registered fund’s use of derivatives and related instruments could potentially limit or impact a Fund’s ability to invest in derivatives, limit a Fund’s ability to employ certain strategies that use derivatives or other similar investments and/or adversely affect the value of derivatives or other similar investments and a Fund’s performance. Distressed and Defaulted Securities Risk is the risk of investing in the securities of financially distressed issuers, including the risk of default. These securities may fluctuate more in price and are typically less liquid.
Distressed securities generally trade significantly below “par” or full value.
A Fund also will be subject to significant uncertainty as to when, and in what manner, and for what value obligations evidenced by securities of financially distressed issuers will eventually be satisfied.
Distribution Rate Risk is the risk that, although the Fund may seek to maintain level distributions, the Fund’s distribution rate may be affected by numerous factors, including but not limited to changes in realized and projected market returns, fluctuations in market interest rates, Fund performance, and other factors. There can be no assurance that a change in market conditions or other factors will not result in a change in a Fund’s distribution rate or that the rate will be sustainable in the future.
Emerging Markets Risk is the risk of investing in emerging market securities. The risks primarily associated with foreign
(non-U.S.)
investments may be particularly high to the extent a Fund invests in securities of issuers based or doing business in emerging markets countries or in securities denominated in the currencies of emerging market countries. Equity Securities and Related Market Risk is the risk that the value of equity or equity-related securities, such as common stocks and preferred securities, may decline due to general market conditions
which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity or equity-related securities generally have greater price volatility than fixed income securities. In addition, preferred securities may be subject to greater credit risk or other risks, such as risks related to deferred and omitted distributions, limited voting rights, liquidity, interest rates, regulatory changes and special redemption rights.
Focused Investment Risk is the risk that, to the extent that a Fund focuses its investments in a particular industry, country or geographic region, the NAV of its common shares will be more susceptible to events or factors affecting companies in that industry, country or geographic region.
Foreign
(Non-U.S.)
Investment Risk is the risk that investing in foreign (non-U.S.)
securities may result in a Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. issuers or securities that trade exclusively in U.S. markets, due to smaller or less developed markets, differing financial reporting, accounting, corporate governance and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable U.S. or foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, political changes, diplomatic developments, trade restrictions (including tariffs) or the imposition of sanctions and other similar measures. Foreign (non-U.S.)
securities may also be less liquid and more difficult to value than securities of U.S. issuers. Foreign Loan Originations Risk is the risk associated with a Fund originating loans to foreign entities and individuals, including foreign
(non-U.S.)
and emerging market entities and individuals, which may involve risks not ordinarily associated with exposure to loans to U.S. entities and individuals due to more or less governmental supervision and regulation than exists in the U.S. Due to differences in legal systems, there may be difficulty in obtaining or enforcing a court judgment outside the U.S. In addition, to the extent that investments are made in a limited number of countries, events in those countries will have a more significant impact on a Fund. A Fund’s loans to foreign entities and individuals may be subject to risks of increased transaction costs, potential delays in settlement or unfavorable differences between the U.S. economy and foreign economies. High Yield Securities Risk is the risk that high yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) are subject to greater levels of market, credit, call and liquidity risks, including the risk that a court will subordinate high yield senior debt to other debt of the issuer or take other actions detrimental to holders of the senior debt. High yield securities are considered primarily
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speculative by rating agencies with respect to the issuer’s continuing ability to make principal and interest payments and their values may be more volatile than higher- rated securities of similar maturity.
Inflation/Deflation Risk is the risk that the value of assets or income from a Fund’s investments will be worth less in the future as inflation decreases the value of payments at future dates. As inflation increases, the real value of a Fund’s portfolio could decline. Inflation rates may change frequently and significantly as a result of various factors, including unexpected shifts in the domestic or global economy or changes in fiscal or monetary policies. Deflation risk is the risk that prices throughout the economy decline over time. Deflation may have an adverse effect on the creditworthiness of issuers and may make issuer default more likely, which may result in a decline in the value of a Fund’s portfolio and Common Shares.
Inflation-Indexed Security Risk is the risk that inflation-indexed debt securities are subject to the effects of actual or anticipated changes in market interest rates caused by factors other than inflation (e.g., real interest rates). In general, the value of an inflation-indexed security, including Treasury Inflation-Protected Securities (“TIPS”), tends to decrease when real interest rates increase and can increase when real interest rates decrease. Interest payments on inflation-indexed securities are unpredictable and will fluctuate as the principal and interest are adjusted for inflation. There can be no assurance that the inflation index used will accurately measure the real rate of inflation in the prices of goods and services. Any increase in the principal amount of an inflation-indexed debt security will be considered taxable ordinary income for the amount of the increase in the calendar year, even though the Fund will not receive the principal until maturity.
Insurance-Linked and Other Instruments Risk is the risk that a Fund could lose a portion or all of the principal it has invested in insurance-linked instruments and similar investments (which may include, for example, exposure to reinsurance contracts (through sidecars or otherwise), event-linked bonds, such as catastrophe and resilience bonds, and securities relating to life insurance policies, annuity contracts and premium finance loans).
Interest Rate Risk is the risk that fixed income securities and other instruments in a Fund’s portfolio will fluctuate in value due to changes, or anticipation of changes, in interest rates; a fund with a longer average portfolio duration will be more sensitive to changes in interest rates than a fund with a shorter average portfolio duration. Factors such as government and central bank policy, inflation, the economy, and market for bonds can impact interest rates and yields.
Issuer Risk is the risk that the value of a security may decline for reasons related to the issuer, such as management performance, major litigation, investigations or other controversies, changes in the issuer’s
financial condition or credit rating, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives, financial leverage, reputation or reduced demand for the issuer’s goods or services. A change in the financial condition of a single issuer may affect one or more other issuers or the securities markets as a whole.
Leverage Risk is the risk that certain transactions of a Fund, such as direct borrowing from banks, reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, and derivative instruments, may give rise to leverage, magnifying gains and losses and causing the Fund to be more volatile than if it had not been leveraged. There can be no assurance these circumstances will occur. This means that leverage entails a heightened risk of loss. The use of leverage may also increase a Fund’s sensitivity to interest rate changes and other market risks.
When the Fund reduces or discontinues its use of leverage (“deleveraging”), which it may be required to do at inopportune times, it may be required to sell portfolio securities at inopportune times to repay leverage obligations, which could result in realized losses and a decrease in the Fund’s net asset value. The use of leverage may also increase a Fund’s sensitivity to various risks and interest rate environments.
Liquidity Risk is the risk that a particular investment may be difficult to purchase or sell and that a Fund may be unable to sell investments at an advantageous time or price or possibly require a Fund to dispose of other investments at unfavorable times or prices in order to satisfy its obligations, which could prevent the Fund from taking advantage of other investment opportunities. Illiquidity can be caused by, among other things, a drop in overall market trading volume, an inability to find a willing buyer, or legal restrictions on the securities’ resale, capital controls, delays or limits on repatriation of local currency, or insolvency of local governments. Additionally, the market for certain investments may become illiquid under adverse market or economic conditions independent of any specific adverse changes in the conditions of a particular issuer, such as changes in interest rates, elevated volatility, market or geopolitical disruptions, economic uncertainty or public health crises. There can be no assurance that an investment that is deemed to be liquid when purchased will continue to be liquid while it is held by the Fund and/or when the Fund wishes to dispose of it.
Loan Origination Risk is the risk associated with the fact that a Fund may also seek to originate loans, including, without limitation, residential and/or commercial real estate or mortgage-related loans, consumer loans or other types of loans, which may be in the form of whole loans, secured and unsecured notes, senior and second lien
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loans, mezzanine loans, bridge loans or similar investments. A Fund may originate loans to corporations and/or other legal entities and individuals, including foreign
(non-U.S.)
entities and individuals. Such borrowers may have credit ratings that are determined by one or more NRSROs or PIMCO to be below investment grade. This may include loans to public or private firms or individuals, such as in connection with housing development projects. The loans a Fund invests in or originates may vary in maturity and/or duration. A Fund is not limited in the amount, size or type of loans it may invest in and/or originate, including with respect to a single borrower or with respect to borrowers that are determined to be below investment grade, other than pursuant to any applicable law. A Fund’s investment in or origination of loans may also be limited by the requirements the Fund intends to observe under Subchapter M of the Code in order to qualify as a RIC. A Fund may subsequently offer such investments for sale to third parties; provided, that there is no assurance that a Fund will complete the sale of such an investment. If a Fund is unable to sell, assign or successfully close transactions for the loans that it originates, a Fund will be forced to hold its interest in such loans for an indeterminate period of time. This could result in a Fund’s investments having high exposure to certain borrowers. A Fund will be responsible for the expenses associated with originating a loan (whether or not consummated). This may include significant legal and due diligence expenses, which will be indirectly borne by a Fund and Common Shareholders.
Loans and Other Indebtedness; Loan Acquisitions, Participations and Assignments Risk is the risk that scheduled interest or principal payments will not be made in a timely manner or at all, either of which may adversely affect the values of a loan. Additionally, there is a risk that the collateral underlying a loan may be unavailable or insufficient to satisfy a borrower’s obligation, and a Fund could become part owner of any collateral if a loan is foreclosed, subjecting a Fund to costs associated with owning and disposing of the collateral.
In the event of the insolvency of the lender selling a participation, there is a risk that a Fund may be treated as a general creditor of the lender and may not benefit from any
set-off
between the lender and the borrower. If a loan is foreclosed, the Fund may become owner of the loan’s collateral. The Fund may bear the costs and liabilities associated with owning and holding or disposing of the collateral.
There is the risk that a Fund may have difficulty disposing of loans and loan participations due to the lack of a liquid secondary market for loans and loan participations.
To the extent a Fund invests in loans or originates loans, including bank loans, the Fund may be subject to greater levels of credit risk, call risk, settlement risk, risk of subordination to other creditors, insufficient or lack of protection under federal securities laws and liquidity risk than funds that do not acquire such instruments.
Management Risk is the risk that the investment techniques and risk analyses applied by PIMCO, including the use of quantitative models or methods, will not produce the desired results and that actual or perceived conflicts of interest, legislative, regulatory or tax restrictions, policies or developments may affect the investment techniques available to PIMCO in connection with managing the Fund and may cause PIMCO to restrict or prohibit participation in certain investments. There is no guarantee that the investment objective of the Fund will be achieved.
Market Risk is the risk that the value of securities owned by a Fund may fluctuate, sometimes rapidly or unpredictably, due to a variety of factors affecting (or perceiving to affect) securities markets generally or particular industries, sectors or companies represented in the securities markets.
Market Discount Risk is the risk that the price of a Fund’s common shares of beneficial interest will fluctuate with market conditions and other factors. Shares of
closed-end
management investment companies frequently trade at a discount from their net asset value. Market Disruptions Risk is the risk of investment and operational risks associated with financial, economic and other global market developments and disruptions, including those arising from actual or threatened war or armed conflicts, military conflicts, geopolitical disputes, terrorism, social or political unrest, recessions, supply chain disruptions, tariffs and other restrictions on trade, sanctions, market manipulation, government interventions, defaults and shutdowns, political changes or diplomatic developments, public health emergencies (such as the spread of infectious diseases, pandemics and epidemics), bank failures, natural/environmental disasters, climate-change and climate related events, responses to government actions or interventions (the threat or imposition of tariffs, trade restrictions, currency restrictions, or similar actions) which can all negatively impact the securities markets, interest rates, auctions, secondary trading, ratings, credit risk, inflation, deflation and other factors, causing a Fund to lose value. These events can also impair the technology and other operational systems upon which a Fund’s service providers, including PIMCO as a Fund’s investment adviser, rely, and could otherwise disrupt a Fund’s service providers’ ability to fulfill their obligations to a Fund. Furthermore, events involving limited liquidity, defaults,
non-performance
or other adverse developments that affect financial institutions or the financial services industry generally, or concerns or ANNUAL REPORT |
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rumors about any events of these kinds or other similar risks, have in the past and may in the future lead to market-wide liquidity problems.
Mortgage-Related and Other Asset-Backed Instruments Risk is the risk of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk and credit risk. A Fund may invest in any tranche of mortgage-related and other asset-backed securities, including junior and/or equity tranches (to the extent consistent with the Fund’s guidelines), which generally carry higher levels of the foregoing risks.
Mortgage-Related Derivative Instruments Risk is the risk of investing in derivative mortgage-backed securities, including call risk and extension risk. Small changes in mortgage prepayments can significantly impact the cash flows and the market value of these derivative instruments. In addition, particular derivative instruments may be leveraged such that their exposure (i.e., price sensitivity) to interest rate risk and/or prepayment risk is magnified.
Municipal Bond Risk is the risk that a Fund may be affected significantly by the economic, regulatory, social, environmental, public health or political developments affecting the ability of issuers of debt securities whose interest is, in the opinion of bond counsel for the issuer at the time of issuance, exempt from federal income tax (“Municipal Bonds”) to pay interest or repay principal.
Operational Risk is the risk arising from factors such as processing errors, communication errors, human errors, inadequate or failed internal or external processes, failures in systems and technology, cybersecurity incidents, the potential use of artificial intelligence and machine learning (AI), changes in personnel and errors caused by third-party service providers. The occurrence of any of these failures, errors or breaches could result in a loss of information, regulatory scrutiny, reputational damage or other events, any of which could have a material adverse effect on a Fund. Operational and technology risks for the issuers could also result in material adverse consequences for such issuers and may cause the Fund’s investments in such issuers to lose value. While a Fund seeks to minimize such events through controls and oversight, there may still be failures that could cause losses to the Fund.
Other Investment Companies Risk is the risk that Common Shareholders may be subject to duplicative expenses to the extent a Fund invests in other investment companies. In addition, these other investment companies may utilize leverage, in which case an investment would subject the Fund to additional risks associated with leverage.
Platform Risk is the risk resulting from the fact that the Alt Lending ABS in which the Fund invests are typically not listed on any securities
exchange and not registered under the Securities Act. In addition, the Fund anticipates that these instruments may only be sold to a limited number of investors and may have a limited or
non-existent
secondary market. Accordingly, the Fund currently expects that certain of the investments in Alt Lending ABS will face heightened levels of liquidity risk. Although currently there is generally no active, reliable secondary market for certain Alt Lending ABS, a secondary market for these Alt Lending ABS may develop. If the Fund purchases Alt Lending ABS on an alternative lending platform, the Fund will have the right to receive principal and interest payments due on loans underlying the Alt Lending ABS only if the platform servicing the loans receives the borrower’s payments on such loans and passes such payments through to the Fund. If a borrower is unable or fails to make payments on a loan for any reason, the Fund may be greatly limited in its ability to recover any outstanding principal or interest due, as (among other reasons) the Fund may not have direct recourse against the borrower or may otherwise be limited in its ability to directly enforce its rights under the loan, whether through the borrower or the platform through which such loan was originated. For example, the loan may be unsecured or under-collateralized and/or it may be impracticable to commence a legal proceeding against the defaulting borrower. Portfolio Turnover Risk is the risk that a high portfolio turnover will result in greater expenses to a Fund, including brokerage commissions or dealer
mark-ups
and other transaction costs on the sale of securities and reinvestments in other securities, which directly reduce net returns to investors. The higher the rate of portfolio turnover of a Fund, the higher these transaction costs borne by the Fund generally will be. Such sales may result in realization of taxable capital gains (including short-term capital gains, which are generally taxed to shareholders holdings shares in taxable accounts at ordinary income tax rates when distributed net of short-term capital losses and net long-term capital losses) and may adversely impact the Fund’s after-tax
returns. The realization of short-term capital gains may also cause adverse tax consequences for a Fund’s shareholders. Potential Conflicts of Interest Risk — Allocation of Investment Opportunities is the risk that PIMCO’s or any of its affiliate’s interests or the interests of its clients may conflict with those of the Funds and the results of a Fund’s investment activities may differ from those of the Fund’s affiliates, or another account managed by PIMCO or its affiliates, and it is possible that the Fund could sustain losses during periods in which one or more of the Fund’s affiliates and/or other accounts managed by PIMCO or its affiliates, including proprietary accounts, achieve profits on their trading.
Preferred Securities Risk is the risk that certain preferred securities contain provisions that allow an issuer under certain conditions to skip or defer distributions which may require the Fund to include the
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amount of the deferred distribution in its taxable income for tax purposes although it does not currently receive such amount in cash. Additionally, preferred securities are subordinated to bonds and other debt securities in an issuer’s capital structure in terms of priority for corporate income and liquidation payments, and therefore will be subject to greater credit risk than those debt securities. Preferred securities may trade less frequently and in a more limited volume and may be subject to more abrupt or erratic price movements than many other securities, such as common stocks, corporate debt securities and U.S. Government securities.
Privacy and Data Security Risk is the risk resulting from the fact that the Gramm-Leach-Bliley Act (“GLBA”) and other laws limit the disclosure of certain
non-public
personal information about a consumer to non-affiliated
third parties and require financial institutions to disclose certain privacy policies and practices with respect to information sharing with both affiliates and non-affiliated
third parties. Many states and a number of
non-U.S.
jurisdictions have enacted privacy and data security laws requiring safeguards on the privacy and security of consumers’ personally identifiable information. Other laws deal with obligations to safeguard and dispose of private information in a manner designed to avoid its dissemination. Privacy rules adopted by the U.S. Federal Trade Commission and the SEC implement the GLBA and other requirements and govern the disclosure of consumer financial information by certain financial institutions, ranging from banks to private investment funds. U.S. platforms following certain models generally are required to have privacy policies that conform to these GLBA and other requirements. In addition, such platforms typically have policies and procedures intended to maintain platform participants’ personal information securely and dispose of it properly. Private Placement and Restricted Securities Risk is the risk that securities received in a private placement may be subject to strict restrictions on resale, and there may be no liquid secondary market or ready purchaser for such securities and the risk that a Fund’s investment in securities that have not been registered for public sale, but that are eligible for purchase and sale pursuant to Rule 144A under the Securities Act, may be relatively less liquid than registered securities traded on established securities markets. Therefore, a Fund may be unable to dispose of such securities when it desires to do so, or at the most favorable time or price. Private placements may also raise valuation risks.
Privately-Issued Mortgage-Related Securities Risk is the risk of nonpayment because there are no direct or indirect government, agency or government-sponsored entity guarantees of payments in the pools created by non-governmental issuers. As a result, investments in privately issued mortgage-related securities are subject to the credit risk
of the underlying collateral directly, and such securities may experience significant losses, including total loss of principal, in the event of defaults or deterioration in the credit quality of the underlying mortgage loans. Additionally, privately-issued mortgage- related securities generally are exempt from registration under the Securities Act of 1933 and, as such, are not subject to the same disclosure requirements as publicly-issued mortgage-related securities.
Real Estate Risk is the risk associated with investing in real estate investments, including investments in equity or debt securities issued by private and public real estate investment trusts (“REITs”), real estate operating companies (“REOCs”), private or public real estate-related loans, real estate-linked derivative instruments and pooled investment vehicles (including registered investment companies and private funds or other pooled investment vehicles that would qualify as “investment companies” under the Act but for an applicable exemption or exclusion) that invest in real estate investments, as applicable. A Fund will be subject to the risks associated with owning real estate and with the real estate industry generally.
Regulatory Changes Risk is the risk associated with the fact that financial entities, such as investment companies and investment advisers, are generally subject to extensive government regulation and intervention. Government regulation and/or intervention may change the way the Fund is regulated, affect the expenses incurred directly by the Fund and the value of its investments, and limit and /or preclude the Fund’s ability to achieve its investment objectives. Government regulation may change frequently and may have significant adverse consequences. A Fund and the Investment Manager have historically been eligible for exemptions from certain regulations. However, there is no assurance that a Fund and PIMCO will continue to be eligible for such exemptions. Moreover, government regulation may have unpredictable and unintended effects. Legislative or regulatory actions to address perceived liquidity or other issues in fixed income markets generally, or in particular markets such as the municipal securities market, may alter or impair the Fund’s ability to pursue its investment objective or utilize certain investment strategies and techniques.
Regulatory Risk — Commodity Pool Operator is the risk associated with the CFTC’s adopted regulations that subject registered investment companies and their investment advisers to regulation by the CFTC if the registered investment company invests more than a prescribed level of its liquidation value in futures, options on futures or commodities, swaps, or other financial instruments regulated under the Commodity Exchange Act (“CEA”) and the rules thereunder (“commodity interests”), or if the Fund markets itself as providing investment exposure to such instruments. PIMCO is registered with the CFTC as a Commodity Pool Operator.
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Notes to Financial Statements |
(Cont.) |
Reinvestment Risk is the risk that income from the Fund’s portfolio will decline if and when the Fund invests the proceeds from matured, traded or called debt obligations at market interest rates that are below the portfolio’s current earnings rate. The Fund also may choose to sell higher yielding portfolio securities and to purchase lower yielding securities to achieve greater portfolio diversification, because the portfolio managers believe the current holdings are overvalued or for other investment-related reasons.
REIT Risk is the risk associated with investing in REITs, which are pooled investment vehicles that own, and usually operate, income-producing real estate. Some REITs also finance real estate. If a REIT meets certain requirements, including distributing to shareholders substantially all of its taxable income (other than net capital gains), then it is not typically taxed on the income distributed to shareholders. Therefore, REITs may pay higher dividends than other issuers.
Repurchase Agreements Risk is the risk that, if the party agreeing to repurchase a security should default, a Fund will seek to sell the securities which it holds, which could involve procedural costs or delays in addition to a loss on the securities if their value should fall below their repurchase price.
Risk Retention Investment Risk is the risk associated with the Fund’s investments in risk retention tranches of commercial mortgage-backed securities (“CMBS”) or other eligible securitizations, if any (“risk retention tranches”), which are eligible residual interests typically held by the sponsors of such securitizations pursuant to the final rules implementing the credit risk retention requirements of Section 941 of the Dodd-Frank Act (the “U.S. Risk Retention Rules”). There can be no assurance that the applicable federal agencies charged with the implementation of the final U.S. Risk Retention Rules (the Federal Deposit Insurance Corporation, the Comptroller of the Currency, the Federal Reserve Board, the SEC, the Department of Housing and Urban Development, and the Federal Housing Finance Agency) could not take positions in the future that differ from the interpretation of such rules taken or embodied in such securitizations, or that the final U.S. Risk Retention Rules will not change. Furthermore, if the Fund breaches any undertakings in any risk retention agreement, it will be exposed to claims by the other parties thereto, including for any losses incurred as a result of such breach, which could be significant and exceed the value of the Fund’s investments.
Securities Lending Risk is the risk that, when a Fund lends portfolio securities, its investment performance will continue to reflect changes in the value of the securities loaned and lose rights in the collateral or delay in recovery of the collateral if the borrower fails to return the security loaned or becomes insolvent. The Fund may pay lending fees to a party arranging the loan, which may be an affiliate of the Fund.
Senior Debt Risk is the risk that a Fund will be subject to greater levels of credit risk than funds that do not invest in below investment grade senior debt. A Fund may also be subject to greater levels of liquidity risk than funds that do not invest in senior debt. Restrictions on transfers in loan agreements, a lack of publicly available information and other factors may, in certain instances, make senior debt more difficult to sell at an advantageous time or price than other types of securities or instruments.
Additionally, if the issuer of senior debt prepays, the Fund will have to consider reinvesting the proceeds in other senior debt or similar instruments that may pay lower interest rates.
Short Exposure Risk is the risk of entering into short sales or other short positions, including the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale or other short position will not fulfill its contractual obligations, causing a loss to a Fund.
Smaller Company Risk is the risk that the value of securities issued by a smaller company may fluctuate, sometimes rapidly and unpredictably as compared to more widely held securities, due to narrow markets and limited resources of smaller companies. Investments in smaller companies generally are subject to greater levels of credit, market and issuer risk.
Sovereign Debt Risk is the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result of default or other adverse credit events resulting from an issuer’s inability or unwillingness to make principal or interest payments in a timely fashion.
Special Purpose Acquisition Companies (“SPACs”) Risk is the risk that, because SPACs and similar entities are in essence “blank check” companies without operating history or ongoing business other than seeking acquisitions, the value of their securities is particularly dependent on the ability of the entity’s management to identify and complete a profitable acquisition. A SPAC’s structure may result in significant dilution of a stockholder’s share value immediately upon the completion of a business combination due to, among other reasons, interests held by the SPAC sponsor, conversion of warrants into additional shares, shares issued in connection with a business combination and/or certain embedded costs. There is no guarantee that the SPACs in which the Fund invests will complete an acquisition or that any acquisitions that are completed will be profitable. Some SPACs may pursue acquisitions only within certain industries or regions, which may increase the volatility of their prices. In addition, these securities, which are typically traded in the market, may be considered illiquid and/or be subject to restrictions on resale.
over-the-counter
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Structured Investments Risk is the risk that a Fund’s investment in structured products, including, structured notes, credit-linked notes and other types of structured products bear the risks of the underlying investments, index or reference obligation and are subject to counterparty risk. A Fund may have the right to receive payments only from the structured product, and generally does not have direct rights against the issuer or the entity that sold the assets to be securitized. Structured products generally entail risks associated with derivative instruments. If the issuer of a structured product uses shorter term financing to purchase longer term securities, the issuer may be forced to sell its securities at below market prices if it experiences difficulty in obtaining such financing, which may adversely affect the value of the structured products owned by the Fund.
Subprime Risk is the risk that loans, and debt instruments collateralized by loans, acquired by a Fund may be subprime in quality, or may become subprime in quality.
Although there is no specific legal or market definition of “subprime,” subprime loans are generally understood to refer to loans made to borrowers that display poor credit histories and other characteristics that correlate with a higher default risk. Accordingly, subprime loans, and debt instruments secured by such loans, have speculative characteristics and are subject to heightened risks, including the risk of nonpayment of interest or repayment of principal, and the risks associated with investments in high yield securities. In addition, these instruments could be subject to increased regulatory scrutiny. A Fund is not restricted by any particular borrower credit risk criteria and/or qualifications when acquiring loans or debt instruments collateralized by loans.
Subsidiary Risk is the risk that, by investing in a Fund’s subsidiary, the Fund is indirectly exposed to the risks associated with the subsidiary’s investments. Fund subsidiaries are not registered under the Act and may not be subject to all the investor protections of the Act. There is no guarantee that the investment objective of a subsidiary will be achieved.
Synthetic Convertible Securities Risk is the risk that the values of synthetic convertible securities will respond differently to market fluctuations than a traditional convertible security because a synthetic convertible is composed of two or more separate securities or instruments, (such as a debt security and a warrant or option to purchase another security), each with its own market value. Synthetic convertible securities are also subject to the risks associated with derivatives. In addition, if the value of the underlying common stock or the level of the index involved in the convertible element falls below the strike price of the warrant or option, the warrant or option may lose all value.
Tax Risk is the risk that if, in any year, a Fund were to fail to qualify for treatment as a regulated investment company under Subchapter M
of the Tax Code, and were ineligible to or did not otherwise cure such failure, the Fund would be subject to tax on its taxable income at corporate rates and, when such income is distributed, shareholders would be subject to a further tax to the extent of the Fund’s current or accumulated earnings and profits.
U.S. Government Securities Risk is the risk that the obligations supported by (i) the full faith and credit of the United States, (ii) the right of the issuer to borrow from the U.S. Treasury, (iii) the discretionary authority of the U.S. Government to purchase the agency’s obligations (iv) or only by the credit of the agency, instrumentality or corporation will not be satisfied in full, or that such obligations will decrease in value or default. U.S. government securities are subject to market risk, interest rate risk and credit risk.
Valuation Risk is the risk that fair value pricing used when market quotations are not readily available may not result in adjustments to the prices of securities or other assets, or that fair value pricing may not reflect actual market value. It is possible that the fair value determined in good faith for a security or other asset will be materially different from quoted or published prices, from the prices used by others for the same security or other asset and/or from the value that actually could be or is realized upon the sale of that security or other asset.
Zero-Coupon
Bond, Step-Ups
and Payment-in-Kind
zero-coupon,
step ups and payment-in-kind
(b) Other Risks
In general, a Fund may be subject to additional risks, including, but not limited to, risks related to government regulation and intervention in financial markets, operational risks, risks associated with financial, economic and global market disruptions, and cyber security risks. Please see a Fund’s then-currently effective prospectus and statement of additional information for a more detailed description of the risks of investing in the Fund. Please see the Important Information section of this report for additional discussion of certain regulatory and market developments that may impact a Fund’s performance.
8. MASTER NETTING ARRANGEMENTS
A Fund may be subject to various netting arrangements (“Master Agreements”) with select counterparties. Master Agreements govern
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(Cont.) |
the terms of certain transactions, and are intended to reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that is intended to improve legal certainty. Each type of Master Agreement governs certain types of transactions. Different types of transactions may be traded out of different legal entities or affiliates of a particular organization, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow a Fund to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single Master Agreement with a counterparty. For financial reporting purposes, the Statements of Assets and Liabilities generally present derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.
Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at
pre-arranged
exposure levels. Under most Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Bills and U.S. dollar cash are generally the preferred forms of collateral, although other securities may be used depending on the terms outlined in the applicable Master Agreement. Securities and cash pledged as collateral are reflected as assets on the Statements of Assets and Liabilities as either a component of Investments at value (securities) or Deposits with counterparty. Cash collateral received is not typically held in a segregated account and as such is reflected as a liability on the Statements of Assets and Liabilities as Deposits from counterparty. The market value of any securities received as collateral is not reflected as a component of NAV. A Fund’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement. Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase and certain sale-buyback transactions between a Fund and select counterparties. Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default and maintenance of collateral. The market value of transactions under the Master Repo Agreement, collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Schedules of Investments.
Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as TBA
securities, delayed-delivery or certain sale-buyback transactions by and between a Fund and select counterparties. The Master Forward Agreements maintain provisions for, among other things, transaction initiation and confirmation, payment and transfer, events of default, termination and maintenance of collateral. The market value of forward settling transactions, collateral pledged or received, and the net exposure by counterparty as of period end is disclosed in the Notes to Schedules of Investments.
Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures and cleared OTC derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the CFTC. In the United States, counterparty risk may be reduced as creditors of an FCM cannot have a claim to Fund assets in the segregated account. FCM customers, such as the Funds, are permitted to transfer their customer account (and cleared derivative transactions held in such customer account) from one FCM to another FCM. Upon completion of the transfer, the customer maintains the same economic position with respect to the outstanding exposure. As such, these transfers are not recognized as dispositions and reacquisitions of the affected derivative positions. Portability of exposure reduces risk to the Funds. Variation margin, which reflects changes in market value, is generally exchanged daily, but may not be netted between futures and cleared OTC derivatives unless the parties have agreed to a separate arrangement in respect of portfolio margining. The porting of exposure between FCMs has no impact on the market value or accumulated unrealized appreciation (depreciation), initial margin posted, and any unsettled variation margin; these values as of period end are disclosed in the Notes to Schedules of Investments.
Prime Broker Arrangements may be entered into to facilitate execution and/or clearing of listed equity option transactions or short sales of equity securities between a Fund and selected counterparties. The arrangements provide guidelines surrounding the rights, obligations and other events, including, but not limited to, margin, execution and settlement. These agreements maintain provisions for, among other things, payments, maintenance of collateral, events of default and termination. Margin and other assets delivered as collateral are typically in the possession of the prime broker and would offset any obligations due to the prime broker. The market values of listed options and securities sold short and related collateral are disclosed in the Notes to Schedules of Investments.
International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern bilateral OTC derivative transactions entered into by a Fund with select counterparties. ISDA Master Agreements maintain
134 |
PIMCO CLOSED-END FUNDS |
| June 30, 2026 |
provisions for general obligations, representations, agreements, collateral posting and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. The ISDA Master Agreement may contain additional provisions that add counterparty protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level or as required by regulation. Similarly, if required by regulation, the Funds may be required to post additional collateral beyond coverage of daily exposure. These amounts, if any, may (or if required by law, will) be segregated with a third-party custodian. To the extent the Funds are required by regulation to post additional collateral beyond coverage of daily exposure, they could potentially incur costs, including in procuring eligible assets to meet collateral requirements, associated with such posting. The market value of OTC financial derivative instruments, collateral received or pledged, and net exposure by counterparty as of period end are disclosed in the Notes to Schedules of Investments.
9. FEES AND EXPENSES
(a) Management Fee
PIMCO is a majority-owned subsidiary of Allianz Asset Management of America LLC (“Allianz Asset Management”) and serves as the Manager to the Funds, pursuant to an investment management agreement.
Pursuant to the Investment Management Agreements with PIMCO (the “Agreement”), and subject to the supervision of the Board, PIMCO is responsible for providing to each Fund investment guidance and policy direction in connection with the management of the Fund, including oral and written research, analysis, advice, and statistical and economic data and information. In addition, pursuant to the Agreement and subject to the general supervision of the Board, PIMCO, at its expense, provides or causes to be furnished all supervisory and administrative and other services reasonably required for the operation of the Funds, including but not limited to, expenses of most third-party service providers (e.g., audit, custodial, legal, transfer agency, printing) and other expenses, such as those associated with insurance, proxy solicitations and mailings for shareholder meetings, NYSE listing and related fees, tax services, valuation services and other services the Funds require for their daily operations.
Pursuant to the Agreements, PIMCO receives an annual fee, payable monthly, at the annual rates shown in the table below:
Fund Name |
Annual Rate |
|||||||
PIMCO Corporate & Income Opportunity Fund |
0.65% | (1) | ||||||
PIMCO Corporate & Income Strategy Fund |
0.81% | (1) | ||||||
PIMCO High Income Fund |
0.76% | (1) | ||||||
Fund Name |
Annual Rate |
|||||||
PIMCO Income Strategy Fund |
0.86% | (2) | ||||||
PIMCO Income Strategy Fund II |
0.83% | (2) | ||||||
(1) |
Management fees calculated based on the Fund’s average daily NAV (including daily net assets attributable to any preferred shares of the Fund that may be outstanding). |
(2) |
Management fees calculated based on the Fund’s average weekly “total managed assets”. Total managed assets include total assets of each Fund (including any assets attributable to any preferred shares or other forms of leverage that may be outstanding) minus accrued liabilities (other than liabilities representing leverage). |
In rendering investment advisory services to each Fund, PIMCO may use the resources of one or more foreign
(non-U.S.)
affiliates that are not registered under the Investment Advisers Act of 1940, as amended (the “Advisers Act”) (the “PIMCO Overseas Affiliates”), to provide portfolio management, research and trading services to a Fund under the Memorandums of Understanding (“MOUs”). Each of the PIMCO Overseas Affiliates are Participating Affiliates of PIMCO as that term is used in relief granted by the staff of the SEC allowing U.S. registered advisers to use investment advisory and trading resources of unregistered advisory affiliates subject to the regulatory supervision of the registered adviser. Each PIMCO Overseas Affiliate and any of their respective employees who provide services to the Funds are considered under the MOUs to be “associated persons” of PIMCO as that term is defined in the Advisers Act for purposes of PIMCO’s required supervision. (b) Fund Expenses
Each Fund bears other expenses, which may vary and affect the total level of expenses paid by shareholders, such as (i) salaries and other compensation or expenses, including travel expenses of any of the Fund’s executive officers and employees, if any, who are not officers, directors, shareholders, members, partners or employees of PIMCO or its subsidiaries or affiliates; (ii) taxes and governmental fees, if any, levied against the Fund; (iii) brokerage fees and commissions and other portfolio transaction expenses incurred by or for the Fund (including, without limitation, fees and expenses of outside legal counsel or third-party consultants retained in connection with reviewing, negotiating and structuring specialized loans and other investments made by the Fund, subject to specific or general authorization by the Board (for example,
so-called
“broken-deal costs” (e.g., fees, costs, expenses and liabilities, including, for example, due diligence-related fees, costs, expenses and liabilities, with respect to unconsummated investments))); (iv) expenses of the Fund’s securities lending (if any), including any securities lending agent fees, as governed by a separate securities lending agreement; (v) costs, including interest expenses, of borrowing money or engaging in other types of leverage financing, including, without limitation, through the use by the Fund of reverse repurchase agreements, tender option bonds, bank borrowings and credit facilities; (vi) costs, including dividend and/or interest expenses and other costs (including, without limitation, offering and related legal costs, fees to brokers, fees to
ANNUAL REPORT |
| | JUNE 30, 2026 | 135 |
Notes to Financial Statements |
(Cont.) |
auction agents, fees to transfer agents, fees to ratings agencies and fees to auditors associated with satisfying ratings agency requirements for preferred shares or other securities issued by the Fund and other related requirements in the Fund’s organizational documents) associated with the Fund’s issuance, offering, redemption and maintenance of preferred shares, commercial paper or other senior securities for the purpose of incurring leverage; (vii) fees and expenses of any underlying funds or other pooled vehicles in which the Fund invests; (viii) dividend and interest expenses on short positions taken by the Fund; (ix) fees and expenses, including travel expenses, and fees and expenses of legal counsel retained for their benefit, of Trustees who are not officers, employees, partners, shareholders or members of PIMCO or its subsidiaries or affiliates; (x) extraordinary expenses, including extraordinary legal expenses, that may arise, including expenses incurred in connection with litigation, proceedings, other claims, and the legal obligations of the Fund to indemnify its Trustees, officers, employees, shareholders, distributors, and agents with respect thereto; (xi) organizational and offering expenses of the Funds, including with respect to share offerings, such as rights offerings and shelf offerings, following the Fund’s initial offering, and expenses associated with tender offers and other share repurchases and redemptions; and (xii) expenses of the Fund which are capitalized in accordance with U.S. GAAP. Without limiting the generality or scope of the foregoing, it is understood that the Funds may bear such expenses either directly or indirectly through contracts or arrangements with PIMCO or an affiliated or unaffiliated third party.
Each of the Trustees of the Funds who is not an interested person under Section 2(a)(19) of the Act, (the “Independent Trustees”), also serves as a trustee of a number of other
closed-end
funds for which PIMCO serves as investment manager (together with the Funds, the “PIMCO Closed-End
Funds”), as well as PIMCO California Flexible Municipal Income Fund, PIMCO Flexible Emerging Markets Income Fund, PIMCO Flexible Credit Income Fund and PIMCO Flexible Municipal Income Fund, each a closed end management investment company managed by PIMCO that is operated as an “interval fund” and PIMCO Managed Accounts Trust, an open-end
management investment company with multiple series for which PIMCO serves as investment adviser and administrator. The Funds pay no compensation directly to any Trustee or any other officer who is affiliated with the Manager, all of whom receive remuneration for their services to the Funds from the Manager or its affiliates.
10. RELATED PARTY TRANSACTIONS
The Manager is a related party. Fees payable to this party are disclosed in Note 9, Fees and Expenses, and the accrued related party fee amounts are disclosed on the Statements of Assets and Liabilities.
The Funds have received exemptive relief from the SEC that, to the extent the Funds rely on such relief, permits it to (among other things)
co-invest
with certain other persons, including certain affiliates of the Advisor and certain public or private funds managed by the Advisor and its affiliates, subject to certain terms and conditions. The exemptive relief from the SEC with respect to co-investments
imposes extensive conditions on any co-investments
made in reliance on such relief. 11. GUARANTEES AND INDEMNIFICATIONS
Under each Fund’s organizational documents, each Trustee and officer is indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts.
12. PURCHASES AND SALES OF SECURITIES
The length of time a Fund has held a particular security is not generally a consideration in investment decisions. A change in the securities held by a Fund is known as “portfolio turnover.” Each Fund may engage in frequent and active trading of portfolio securities to achieve its investment objective(s), particularly during periods of volatile market movements. High portfolio turnover may involve correspondingly greater transaction costs, including brokerage commissions or dealer
mark-ups
and other transaction costs on the sale of securities and reinvestments in other securities, which are borne by a Fund. Frequent and active trading of a Fund’s portfolio holdings may cause adverse tax consequences for shareholders due to an increase in short-term capital gains and may also adversely impact a Fund’s after-tax
returns. The transaction costs and tax effects associated with portfolio turnover may adversely affect a Fund’s performance. The portfolio turnover rates are reported in the Financial Highlights. 136 |
PIMCO CLOSED-END FUNDS |
| June 30, 2026 |
Purchases and sales of securities (excluding short-term investments) for the period ended June 30, 2026 were as follows (amounts in thousands):
†
U.S. Government/Agency |
All Other |
|||||||||||||||||||
Fund Name |
Purchases |
Sales |
Purchases |
Sales |
||||||||||||||||
PIMCO Corporate & Income Opportunity Fund |
$ | 208,518 | $ | 117,962 | $ | 1,850,772 | $ | 1,163,368 | ||||||||||||
PIMCO Corporate & Income Strategy Fund |
59,611 | 39,987 | 601,442 | 398,468 | ||||||||||||||||
PIMCO High Income Fund |
68,834 | 39,815 | 657,512 | 401,129 | ||||||||||||||||
PIMCO Income Strategy Fund |
6,979 | 5,498 | 68,490 | 64,156 | ||||||||||||||||
PIMCO Income Strategy Fund II |
43,015 | 32,398 | 444,236 | 299,685 | ||||||||||||||||
† |
A zero balance may reflect actual amounts rounding to less than one thousand. |
13. COMMON SHARES OFFERING
Each of PIMCO Corporate & Income Opportunity Fund (“PTY”), PIMCO Corporate & Income Strategy Fund (“PCN”), PIMCO High Income Fund (“PHK”), PIMCO Income Strategy Fund (“PFL”) and PIMCO Income Strategy Fund II (“PFN”) has authorized an unlimited number of Common Shares at a par value of $0.00001 per share (each of the foregoing Fund’s shares as the context requires, “Common Shares”).
As of the end of the reporting period, each Fund had an effective registration statement on file with the SEC authorizing the Fund to issue shares through the “shelf” registration process pursuant to Rule 415 under the Securities Act (each, a “Shelf Registration Statement”). Pursuant to such Shelf Registration Statements, each Fund may offer and sell Common Shares having an aggregate offering value of up to amounts shown in the table below. Each Fund may have had one or
more prior Shelf Registration Statements in effect during this and/or previous fiscal periods authorizing the sale of additional Common Shares.
Each Fund has entered into a sales agreement (a “Sales Agreement”) with JonesTrading Institutional Services LLC (“JonesTrading”), pursuant to which each Fund may offer and sell its Common Shares offered by an applicable prospectus supplement through JonesTrading as its agent in negotiated transactions or transactions that are deemed to be “at the market” as defined in Rule 415 under the Securities Act, including sales made directly on the NYSE or sales made to or through a market maker other than on an exchange, at prices related to the prevailing market prices or at negotiated prices. Each Fund will pay JonesTrading compensation of up to 1.00% of the gross proceeds with respect to sales of the Common Shares actually effected by JonesTrading under the Sales Agreement.
The aggregate dollar amount of Common Shares registered under each Fund’s Shelf Registration Statement (or its most recent prospectus supplement, if less than such registered amount) as of the end of the periods described below, as well as the number of Common Shares sold and the total amount of offering proceeds (net of offering costs, if any) received by each Fund under one or more Shelf Registration Statements during the Fund’s most recent and prior fiscal periods were as follows:
PTY |
PCN |
PHK |
||||||||||||||||||||||||||||||||||
Year Ended 06/30/2026 |
Year Ended 06/30/2025 |
Year Ended 06/30/2026 |
Year Ended 06/30/2025 |
Year Ended 06/30/2026 |
Year Ended 06/30/2025 |
|||||||||||||||||||||||||||||||
Common Shares registered (aggregate $) |
$ | 1,000,000,000 | $ | 1,000,000,000 | $ | 350,000,000 | $ | 275,000,000 | $ | 350,000,000 | $ | 350,000,000 | ||||||||||||||||||||||||
Common Shares sold |
23,527,414 | 26,627,431 | 7,805,422 | 8,620,434 | 10,865,015 | 13,776,026 | ||||||||||||||||||||||||||||||
Offering proceeds (net of offering costs) |
$ | 311,723,370 | $ | 376,084,928 | $ | 98,486,296 | $ | 114,865,325 | $ | 52,696,063 | $ | 67,013,445 | ||||||||||||||||||||||||
PFL |
PFN |
|||||||||||||||||||||||
Year Ended 06/30/2026 |
Year Ended 06/30/2025 |
Year Ended 06/30/2026 |
Year Ended 06/30/2025 |
|||||||||||||||||||||
Common Shares registered (aggregate $) |
$ | 50,000,000 | $ | 100,000,000 | $ | 200,000,000 | $ | 200,000,000 | ||||||||||||||||
Common Shares sold |
4,092,276 | 4,199,753 | 3,398,887 | 5,409,468 | ||||||||||||||||||||
Offering proceeds (net of offering costs) |
$ | 34,027,157 | $ | 35,071,290 | $ | 25,300,502 | $ | 40,121,158 | ||||||||||||||||
A Fund may not sell any Common Shares at a price below the NAV of such Common Shares, exclusive of any distributing commission or discount. Sales of the Common Shares, if any, may be made in negotiated transactions or transactions that are deemed to be “at the market”, including sales made directly on the NYSE or sales made to or through a market maker other than on an exchange, at prices related to the prevailing market prices or at negotiated prices.
ANNUAL REPORT |
| | JUNE 30, 2026 | 137 |
Notes to Financial Statements |
(Cont.) |
14. REGULATORY AND LITIGATION MATTERS
The Funds are not named as defendants in any material litigation or arbitration proceedings and are not aware of any material litigation or claim pending or threatened against them.
The foregoing speaks only as of the date of this report.
15. FEDERAL INCOME TAX MATTERS
Each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made. Due to the timing of when distributions are made by a Fund, the Fund may be subject to an excise tax of 4% of the amount by which 98% of the Fund’s annual taxable income and 98.2% of net realized gains exceed the distributions from such taxable income and realized gains for the calendar year.
A Fund may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.
In accordance with U.S. GAAP, the Manager has reviewed the Funds’ tax positions for all open tax years. As of June 30, 2026, the Funds have recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions they have taken or expect to take in future tax returns.
In this reporting period, the Funds adopted FASB Accounting Standards Update
2023-09,
Income Taxes (Topic 740) — Improvements to Income Tax Disclosures (ASU 2023-09),
which enhances income tax disclosures, including disclosure income taxes paid disaggregated by jurisdiction. Adoption of the new standard impacted financial statement disclosures only and did not affect any Funds financial position or the results of its operations. For the annual period covered by this report, the funds did not pay any material federal, state or local income taxes or any material income taxes in foreign jurisdictions. The Funds file U.S. federal, state and local tax returns as required. The Funds’ tax returns are subject to examination by relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.
As of June 30, 2026, the components of distributable taxable earnings are as follows (amounts in thousands):
†
Undistributed Ordinary Income (1) |
Undistributed Long-Term Capital Gains |
Net Tax Basis Unrealized Appreciation/ (Depreciation) (2) |
Other Book-to-Tax Accounting Differences (3) |
Accumulated Capital Losses (4) |
Qualified Late-Year Loss Deferral - Capital (5) |
Qualified Late-Year Loss Deferral - Ordinary (6) |
Total Components of Distributable Earnings |
|||||||||||||||||||||||||||||
PIMCO Corporate & Income Opportunity Fund |
$ | 0 | $ | 0 | $ |
(119,223 |
) |
$ | (25,812 | ) | $ | (368,140 | ) | $ | 0 | $ | 0 | $ | (513,175 | ) | ||||||||||||||||
PIMCO Corporate & Income Strategy Fund |
0 | 0 | (48,341 | ) | (8,481 | ) | (113,476 | ) | 0 | 0 | (170,298 | ) | ||||||||||||||||||||||||
PIMCO High Income Fund |
0 | 0 | (47,949 | ) | (8,982 | ) | (299,636 | ) | 0 | 0 | (356,567 | ) | ||||||||||||||||||||||||
PIMCO Income Strategy Fund |
0 | 0 | 13,988 | (4,064 | ) | (110,241 | ) | 0 | 0 | (100,317 | ) | |||||||||||||||||||||||||
PIMCO Income Strategy Fund II |
0 | 0 | (8,217 | ) | (7,094 | ) | (197,087 | ) | 0 | 0 | (212,398 | ) | ||||||||||||||||||||||||
† |
A zero balance may reflect actual amounts rounding to less than one thousand. |
(1) |
Includes undistributed short-term capital gains, if any. |
(2) |
Adjusted for open wash sale loss deferrals and the accelerated recognition of unrealized gain or loss on certain futures, options, and/or forward contracts for federal income tax purposes. Also adjusted for differences between book and tax realized and unrealized gain (loss) on: constructive sales, swap contracts, straddle loss deferrals, passive foreign investment companies (PFICs), interest accrued on defaulted securities, return of capital distributions from underlying funds, grantor trusts, hyperinflationary investments, and partnerships. |
(3) |
Represents differences in income tax regulations and financial accounting principles generally accepted in the United States of America, mainly for distributions payable at fiscal year-end. |
(4) |
Capital losses available to offset future net capital gains as shown below. |
(5) |
Capital losses realized during the period November 1, 2025 through June 30, 2026 which the Funds elected to defer to the following taxable year pursuant to income tax regulations. |
(6) |
Specified losses realized during the period November 1, 2025 through June 30, 2026 and Ordinary losses realized during the period January 1, 2026 through June 30, 2026 which the Funds elected to defer to the following taxable year pursuant to income tax regulations. |
Under the Regulated Investment Company Modernization Act of 2010, a fund is permitted to carry forward any new capital losses for an unlimited period. Additionally, such capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.
As of June 30, 2026, the Funds had the following post-effective capital losses with no expiration (amounts in thousands):
†
Short-Term |
Long-Term |
|||||||||||
PIMCO Corporate & Income Opportunity Fund |
$ | 169,357 | $ | 198,783 | ||||||||
PIMCO Corporate & Income Strategy Fund |
57,391 | 56,085 | ||||||||||
PIMCO High Income Fund |
154,987 | 144,649 | ||||||||||
PIMCO Income Strategy Fund |
40,828 | 69,413 | ||||||||||
PIMCO Income Strategy Fund II |
87,270 | 109,817 | ||||||||||
† |
A zero balance may reflect actual amounts rounding to less than one thousand. |
138 |
PIMCO CLOSED-END FUNDS |
| June 30, 2026 |
As of June 30, 2026, the aggregate cost and the net unrealized appreciation/(depreciation) of investments for federal income tax purposes are as follows (amounts in thousands):
†
Federal Tax Cost |
Unrealized Appreciation |
Unrealized (Depreciation) |
Net Unrealized Appreciation/ (Depreciation) (7) |
|||||||||||||||||
PIMCO Corporate & Income Opportunity Fund |
$ | 3,412,422 | $ | 368,384 | $ | (488,548 | ) | $ | (120,164 | ) | ||||||||||
PIMCO Corporate & Income Strategy Fund |
1,153,942 | 146,323 | (194,840 | ) | (48,517 | ) | ||||||||||||||
PIMCO High Income Fund |
1,314,263 | 290,769 | (338,897 | ) | (48,128 | ) | ||||||||||||||
PIMCO Income Strategy Fund |
421,515 | 92,444 | (78,338 | ) | 14,106 | |||||||||||||||
PIMCO Income Strategy Fund II |
1,013,317 | 184,851 | (193,333 | ) | (8,482 | ) | ||||||||||||||
† |
A zero balance may reflect actual amounts rounding to less than one thousand. |
(7) |
Adjusted for open wash sale loss deferrals and the accelerated recognition of unrealized gain or loss on certain futures, options, and/or forward contracts for federal income tax purposes. Also adjusted for differences between book and tax realized and unrealized gain (loss) on: constructive sales, swap contracts, straddle loss deferrals, passive foreign investment companies (PFICs), interest accrued on defaulted securities, return of capital distributions from underlying funds, grantor trusts, hyperinflationary investments, and partnerships. |
For the fiscal years ended June 30, 2026 and June 30, 2025, respectively, the Funds made the following tax basis distributions (amounts in thousands):
†
June 30, 2026 |
June 30, 2025 |
|||||||||||||||||||||||||||
Ordinary Income Distributions (8) |
Long-Term Capital Gain Distributions |
Return of Capital (9) |
Ordinary Income Distributions (8) |
Long-Term Capital Gain Distributions |
Return of Capital (9) |
|||||||||||||||||||||||
PIMCO Corporate & Income Opportunity Fund |
$ | 264,390 | $ | 0 | $ | 30,031 | $ | 226,267 | $ | 0 | $ | 26,135 | ||||||||||||||||
PIMCO Corporate & Income Strategy Fund |
91,543 | 0 | 5,722 | 79,566 | 0 | 5,046 | ||||||||||||||||||||||
PIMCO High Income Fund |
94,121 | 0 | 10,588 | 88,031 | 0 | 8,315 | ||||||||||||||||||||||
PIMCO Income Strategy Fund |
34,877 | 0 | 12,006 | 35,889 | 0 | 6,481 | ||||||||||||||||||||||
PIMCO Income Strategy Fund II |
76,278 | 0 | 7,587 | 74,958 | 0 | 3,639 | ||||||||||||||||||||||
† |
A zero balance may reflect actual amounts rounding to less than one thousand. |
(8) |
Includes short-term capital gains distributed, if any. |
(9) |
A portion of the distributions made represents a tax return of capital. Return of capital distributions have been reclassified from undistributed net investment income to paid-in capital to more appropriately conform financial accounting to tax accounting. |
16. SUBSEQUENT EVENTS
In preparing these financial statements, the Funds’ management has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.
On July 01, 2026, the following distributions were declared to common shareholders payable August 03, 2026 to shareholders of record on July 13, 2026:
PIMCO Corporate & Income Opportunity Fund |
$ | 0.118800 per common share | ||||||
PIMCO Corporate & Income Strategy Fund |
$ | 0.112500 per common share | ||||||
PIMCO High Income Fund |
$ | 0.048000 per common share | ||||||
PIMCO Income Strategy Fund |
$ | 0.081400 per common share | ||||||
PIMCO Income Strategy Fund II |
$ | 0.071800 per common share |
On August 03, 2026, the following distributions were declared to common shareholders payable September 01, 2026 to shareholders of record on August 13, 2026:
PIMCO Corporate & Income Opportunity Fund |
$ | 0.118800 per common share | ||||||
PIMCO Corporate & Income Strategy Fund |
$ | 0.112500 per common share | ||||||
PIMCO High Income Fund |
$ | 0.048000 per common share | ||||||
PIMCO Income Strategy Fund |
$ | 0.081400 per common share | ||||||
PIMCO Income Strategy Fund II |
$ | 0.071800 per common share |
Effective as of August 28, 2026, the 80% investment policy of each of PIMCO Corporate & Income Opportunity Fund and PIMCO Corporate & Income Strategy Fund will be 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.
There were no other subsequent events identified that require recognition or disclosure.
ANNUAL REPORT |
| | JUNE 30, 2026 | 139 |
Report of Independent Registered Public Accounting Firm |
To the Board of Trustees and Shareholders of PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO High Income Fund, PIMCO Income Strategy Fund and PIMCO Income Strategy Fund II
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO High Income Fund, PIMCO Income Strategy Fund and PIMCO Income Strategy Fund II (hereafter collectively referred to as the “Funds”) as of June 30, 2026, the related statements of operations and cash flows for the year ended June 30, 2026, the statements of changes in net assets for each of the two years in the period ended June 30, 2026, including the related notes, and the financial highlights for each of the years or periods ended June 30, 2026, 2025, 2024, 2023, 2022 and July 31, 2021 as indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of June 30, 2026, the results of each of their operations and each of their cash flows for the year then ended, the changes in each of their net assets for each of the two years in the period ended June 30, 2026 and each of the financial highlights for each of the years or periods ended June 30, 2026, 2025, 2024, 2023, 2022 and July 31, 2021 as indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2026 by correspondence with the custodian, transfer agent, brokers and agent banks; when replies were not received from brokers or agent banks, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
Kansas City, Missouri
August 28, 2026
We have served as the auditor of one or more investment companies in PIMCO Taxable Closed-End Funds since 1995.
140 |
PIMCO CLOSED-END FUNDS |
Glossary: |
(abbreviations that may be used in the preceding statements) |
(Unaudited) |
Counterparty Abbreviations: |
||||||||||
AZD |
Australia and New Zealand Banking Group |
DUB |
Deutsche Bank AG |
MYI |
Morgan Stanley & Co. International PLC | |||||
BOA |
Bank of America N.A. |
FAR |
Wells Fargo Bank National Association |
NGF |
Nomura Global Financial Products, Inc. | |||||
BOS |
BofA Securities, Inc. |
GLM |
Goldman Sachs Bank USA |
NOM |
Nomura Securities International, Inc. | |||||
BPS |
BNP Paribas S.A. |
GST |
Goldman Sachs International |
RDR |
RBC Capital Markets LLC | |||||
BRC |
Barclays Bank PLC |
IND |
Crédit Agricole Corporate and Investment Bank S.A. |
RTA |
RBC (Barbados) Trading Bank Corp. | |||||
BSH |
Banco Santander S.A. - New York Branch |
JML |
JP Morgan Securities Plc |
SCX |
Standard Chartered Bank, London | |||||
BSS |
Banco Santander S.A. |
JPM |
JP Morgan Chase Bank N.A. |
SGY |
Societe Generale, NY | |||||
BYR |
The Bank of Nova Scotia - Toronto |
JPS |
J.P. Morgan Securities LLC |
SOG |
Societe Generale Paris | |||||
CBK |
Citibank N.A. |
MBC |
HSBC Bank Plc |
SSB |
State Street Bank and Trust Co. | |||||
CDC |
Natixis Securities Americas LLC |
MEI |
Merrill Lynch International |
TDM |
TD Securities (USA) LLC | |||||
CEW |
Canadian Imperial Bank of Commerce World Markets |
MSB |
Morgan Stanley Bank, N.A |
UAG |
UBS AG Stamford | |||||
DBL |
Deutsche Bank AG London |
MSC |
Morgan Stanley & Co. LLC. |
UBS |
UBS Securities LLC | |||||
DEU |
Deutsche Bank Securities, Inc. |
MYC |
Morgan Stanley Capital Services LLC |
|||||||
Currency Abbreviations: |
||||||||||
AUD |
Australian Dollar |
GBP |
British Pound |
MXN |
Mexican Peso | |||||
BRL |
Brazilian Real |
HKD |
Hong Kong Dollar |
NGN |
Nigerian Naira | |||||
CAD |
Canadian Dollar |
IDR |
Indonesian Rupiah |
PEN |
Peruvian New Sol | |||||
COP |
Colombian Peso |
JPY |
Japanese Yen |
TRY |
Turkish New Lira | |||||
DOP |
Dominican Peso |
KWD |
Kuwaiti Dinar |
USD (or $) |
United States Dollar | |||||
EGP |
Egyptian Pound |
KZT |
Kazakhstani Tenge |
ZAR |
South African Rand | |||||
EUR |
Euro |
|||||||||
Exchange Abbreviations: |
||||||||||
CBOT |
Chicago Board of Trade |
OTC |
Over the Counter |
|||||||
Index/Spread Abbreviations: |
||||||||||
ABX.HE |
Asset-Backed Securities Index - Home Equity |
EUR006M |
6 Month EUR Swap Rate |
JY0003M |
3 Month JPY-LIBOR | |||||
BISTREFI |
Turkish Lira Overnight Reference Rate |
EUR012M |
12 Month EUR Swap Rate |
MSMMUSTF |
MSILF Money Market US Treasury Fund Index | |||||
BNMMDTSC |
Dreyfus Treasury Securites Cash Management Fund Yield |
FHMMUSTF |
Federated Hermes US Treasury Cash Reserves Fund Yield |
SOFR |
Secured Overnight Financing Rate | |||||
BP0003M |
3 Month GBP-LIBOR |
GSMMUSTF |
Goldman Sachs Money Market US Treasury Fund Index |
SOFRINDX |
Secured Overnight Financing Rate Index | |||||
BRMMUSDF |
BlackRock Money Market US Treasury Fund Index |
GSMMUSTI |
Goldman Sachs Money Market US Treasury Instrument Index |
SONIO |
Sterling Overnight Interbank Average Rate | |||||
CDOR06 |
6 month CDN Swap Rate |
HSMMUSTF |
HSBC UST Money Market Yield |
TSFR1M |
Term SOFR 1-Month | |||||
CDX.HY |
Credit Derivatives Index - High Yield |
IBR |
Indicador Bancario de Referencia |
TSFR3M |
Term SOFR 3-Month | |||||
EUR003M |
3 Month EUR Swap Rate |
JMMMUSTF |
JP Morgan Money Market US Treasury Fund Index |
TSFR6M |
Term SOFR 6-Month | |||||
Municipal Bond or Agency Abbreviations: |
||||||||||
ACA |
American Capital Access Holding Ltd. |
|||||||||
Other Abbreviations: |
||||||||||
ABS |
Asset-Backed Security |
CMBS |
Collateralized Mortgage-Backed Security |
REMIC |
Real Estate Mortgage Investment Conduit | |||||
ALT |
Alternate Loan Trust |
DAC |
Designated Activity Company |
TBA |
To-Be-Announced | |||||
BRL-CDI |
Brazil Interbank Deposit Rate |
EURIBOR |
Euro Interbank Offered Rate |
TBD |
To-Be-Determined | |||||
CDO |
Collateralized Debt Obligation |
OIS |
Overnight Index Swap |
TBD% |
Interest rate to be determined when loan settles or at the time of funding | |||||
CLO |
Collateralized Loan Obligation |
PIK |
Payment-in-Kind |
|||||||
ANNUAL REPORT |
| |
JUNE 30, 2026 |
141 |
Distribution Information |
(Unaudited) |
For purposes of Section 19 of the Investment Company Act of 1940 (the “Act”), the Funds estimated the periodic sources of any dividends paid during the period covered by this report in accordance with good accounting practice. Pursuant to Rule 19a-1(e) under the Act, the table below sets forth the actual source information for dividends paid during the six month period ended June 30, 2026 calculated as of each distribution period pursuant to Section 19 of the Act. The information below is not provided for U.S. federal income tax reporting purposes. The tax character of all dividends and distributions is reported on Form 1099-DIV (for shareholders who receive U.S. federal tax reporting) at the end of each calendar year. See the Financial Highlights section of this report for the tax characterization of distributions determined in accordance with federal income tax regulations for the fiscal year.
PIMCO Corporate & Income Opportunity Fund |
Net Investment Income* |
Net Realized Capital Gains* |
Paid-in Surplus or Other Capital Sources** |
Total (per common share) |
||||||||||||||||
January 2026 |
$ | 0.0917 | $ | 0.0000 | $ | 0.0271 | $ | 0.1188 | ||||||||||||
February 2026 |
$ | 0.0944 | $ | 0.0000 | $ | 0.0244 | $ | 0.1188 | ||||||||||||
March 2026 |
$ | 0.1147 | $ | 0.0000 | $ | 0.0041 | $ | 0.1188 | ||||||||||||
April 2026 |
$ | 0.1053 | $ | 0.0000 | $ | 0.0135 | $ | 0.1188 | ||||||||||||
May 2026 |
$ | 0.1099 | $ | 0.0000 | $ | 0.0089 | $ | 0.1188 | ||||||||||||
June 2026 |
$ | 0.0973 | $ | 0.0000 | $ | 0.0215 | $ | 0.1188 | ||||||||||||
PIMCO Corporate & Income Strategy Fund |
Net Investment Income* |
Net Realized Capital Gains* |
Paid-in Surplus or Other Capital Sources** |
Total (per common share) |
||||||||||||||||
January 2026 |
$ | 0.0953 | $ | 0.0000 | $ | 0.0172 | $ | 0.1125 | ||||||||||||
February 2026 |
$ | 0.0903 | $ | 0.0000 | $ | 0.0222 | $ | 0.1125 | ||||||||||||
March 2026 |
$ | 0.1125 | $ | 0.0000 | $ | 0.0000 | $ | 0.1125 | ||||||||||||
April 2026 |
$ | 0.1119 | $ | 0.0000 | $ | 0.0006 | $ | 0.1125 | ||||||||||||
May 2026 |
$ | 0.1098 | $ | 0.0000 | $ | 0.0027 | $ | 0.1125 | ||||||||||||
June 2026 |
$ | 0.0999 | $ | 0.0000 | $ | 0.0126 | $ | 0.1125 | ||||||||||||
PIMCO High Income Fund |
Net Investment Income* |
Net Realized Capital Gains* |
Paid-in Surplus or Other Capital Sources** |
Total (per common share) |
||||||||||||||||
January 2026 |
$ | 0.0379 | $ | 0.0000 | $ | 0.0101 | $ | 0.0480 | ||||||||||||
February 2026 |
$ | 0.0360 | $ | 0.0000 | $ | 0.0120 | $ | 0.0480 | ||||||||||||
March 2026 |
$ | 0.0472 | $ | 0.0000 | $ | 0.0008 | $ | 0.0480 | ||||||||||||
April 2026 |
$ | 0.0477 | $ | 0.0000 | $ | 0.0003 | $ | 0.0480 | ||||||||||||
May 2026 |
$ | 0.0450 | $ | 0.0000 | $ | 0.0030 | $ | 0.0480 | ||||||||||||
June 2026 |
$ | 0.0406 | $ | 0.0000 | $ | 0.0074 | $ | 0.0480 | ||||||||||||
PIMCO Income Strategy Fund |
Net Investment Income* |
Net Realized Capital Gains* |
Paid-in Surplus or Other Capital Sources** |
Total (per common share) |
||||||||||||||||
January 2026 |
$ | 0.0562 | $ | 0.0000 | $ | 0.0252 | $ | 0.0814 | ||||||||||||
February 2026 |
$ | 0.0488 | $ | 0.0000 | $ | 0.0326 | $ | 0.0814 | ||||||||||||
March 2026 |
$ | 0.0634 | $ | 0.0000 | $ | 0.0180 | $ | 0.0814 | ||||||||||||
April 2026 |
$ | 0.0605 | $ | 0.0000 | $ | 0.0209 | $ | 0.0814 | ||||||||||||
May 2026 |
$ | 0.0611 | $ | 0.0000 | $ | 0.0203 | $ | 0.0814 | ||||||||||||
June 2026 |
$ | 0.0530 | $ | 0.0000 | $ | 0.0284 | $ | 0.0814 | ||||||||||||
PIMCO Income Strategy Fund II |
Net Investment Income* |
Net Realized Capital Gains* |
Paid-in Surplus or Other Capital Sources** |
Total (per common share) |
||||||||||||||||
January 2026 |
$ | 0.0604 | $ | 0.0000 | $ | 0.0114 | $ | 0.0718 | ||||||||||||
February 2026 |
$ | 0.0554 | $ | 0.0000 | $ | 0.0164 | $ | 0.0718 | ||||||||||||
March 2026 |
$ | 0.0718 | $ | 0.0000 | $ | 0.0000 | $ | 0.0718 | ||||||||||||
April 2026 |
$ | 0.0690 | $ | 0.0000 | $ | 0.0028 | $ | 0.0718 | ||||||||||||
May 2026 |
$ | 0.0692 | $ | 0.0000 | $ | 0.0026 | $ | 0.0718 | ||||||||||||
June 2026 |
$ | 0.0636 | $ | 0.0000 | $ | 0.0082 | $ | 0.0718 | ||||||||||||
* |
The source of dividends provided in the table differs, in some respects, from information presented in this report prepared in accordance with generally accepted accounting principles, or U.S. GAAP. For example, net earnings from certain interest rate swap contracts are included as a source of net investment income for purposes of Section 19(a). Accordingly, the information in the table may differ from information in the accompanying financial statements that are presented on the basis of U.S. GAAP and may differ from tax information presented in the footnotes. Amounts shown may include accumulated, as well as fiscal period net income and net profits. |
** |
Occurs when a Fund distributes an amount greater than its accumulated net income and net profits. Amounts are not reflective of a Fund’s net income, yield, earnings or investment performance. |
142 |
PIMCO CLOSED-END FUNDS |
Federal Income Tax Information |
(Unaudited) |
As required by the Internal Revenue Code (“Code”) and Treasury Regulations, if applicable, shareholders must be notified within 60 days of the Funds’ fiscal year end regarding the status of qualified dividend income and the dividend received deduction.
Dividend Received Deduction. Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a fund’s dividend distribution that qualifies under tax law. The percentage of the following Funds’ fiscal 2026 ordinary income dividend that qualifies for the corporate dividend received deduction is set forth below.
Qualified Dividend Income. Under the Jobs and Growth Tax Relief Reconciliation Act of 2003, the following percentage of ordinary dividends paid during the fiscal year ended June 30, 2026 was designated as ‘‘qualified dividend income’’ as defined in the Jobs and Growth Tax Relief Reconciliation Act of 2003 subject to reduced tax rates in 2026.
Qualified Interest Income and Qualified Short-Term Capital Gain (for
non-U.S.
resident shareholders only). Under the American Jobs Creation Act of 2004, the following amounts of ordinary dividends paid during the fiscal year ended June 30, 2026 are considered to be derived from “qualified interest income,” as defined in Section 871(k)(1)(E) of the Code, and therefore are designated as interest-related dividends, as defined in Section 871(k)(1)(C) of the Code. Further, the following amounts of ordinary dividends paid during the fiscal year ended June 30, 2026 are considered to be derived from “qualified short-term capital gain,” as defined in Section 871(k)(2)(D) of the Code, and therefore are designated as qualified short-term gain dividends, as defined by Section 871(k)(2)(C) of the Code.Section 163(j) Interest Dividends. The Funds intend to pass through the maximum amount allowable as Section 163(j) Interest defined in Proposed Treasury
Section 1.163(j)-1(b).
Section 199A Dividends. The Funds intend to pass through the maximum amount allowable as Section 199A Dividends defined in Proposed Treasury
Section 199A-3(d).
Dividend Received Deduction % |
Qualified Dividend Income % |
Qualified Interest Income (000s) † |
Qualified Short-Term Capital Gains (000s) † |
|||||||||||||||||
PIMCO Corporate & Income Opportunity Fund |
1.00% | 2.24% | $ | 90,765 | $ | 0 | ||||||||||||||
PIMCO Corporate & Income Strategy Fund |
1.00% | 2.50% | 35,056 | 0 | ||||||||||||||||
PIMCO High Income Fund |
1.06% | 4.75% | 29,518 | 0 | ||||||||||||||||
PIMCO Income Strategy Fund |
1.00% | 4.00% | 5,894 | 0 | ||||||||||||||||
PIMCO Income Strategy Fund II |
1.06% | 3.67% | 28,341 | 0 | ||||||||||||||||
† |
A zero balance may reflect actual amounts rounding to less than one thousand. |
Shareholders are advised to consult their own tax advisor with respect to the tax consequences of their investment in the Trust. In January 2027, you will be advised on IRS Form
1099-DIV
as to the federal tax status of the dividends and distributions received by you in calendar year 2026. ANNUAL REPORT |
| | JUNE 30, 2026 | 143 |
Shareholder Meeting Results |
Shareholder Meeting Results
PIMCO Corporate & Income Opportunity Fund and PIMCO Corporate & Income Strategy Fund held their annual meetings of shareholders on April 24, 2026. Common Shareholders voted as indicated below:
PIMCO Corporate & Income Opportunity Fund — PTY
The Common Shareholders of PTY, voting as a single class, voted as indicated below with respect to the election of Mark Michel and Sonya Morris and
the re-election of
Sarah E. Cogan and David Flattum as Trustees of PTY. Affirmative |
Withheld Authority |
|||||||||||
Election of Mark Michel — Class II to serve until the annual meeting held during the 2028-2029 fiscal year. |
135,704,087 | 5,883,024 | ||||||||||
Election of Sonya Morris — Class III to serve until the annual meeting held during the 2026-2027 fiscal year |
131,489,376 | 10,097,736 | ||||||||||
Re-election of Sarah E. Cogan — Class II to serve until the annual meeting held during the 2028-2029 fiscal year. |
131,534,844 | 10,052,266 | ||||||||||
Re-election of David Flattum† |
132,849,324 | 8,737,787 | ||||||||||
† |
Interested Trustee |
The other members of the Board of Trustees at the time of the meeting, namely, Mses. Libby D. Cantrill and Kathleen A. McCartney and Mr. Alan Rappaport, continue to serve as Trustees of the Fund.
PIMCO Corporate & Income Strategy Fund — PCN
The Common Shareholders of PCN, voting as a single class, voted as indicated below with respect to the election of Mark Michel and Sonya Morris and
the re-election of
David Flattum and Alan Rappaport as Trustees of PCN. Affirmative |
Withheld Authority |
|||||||||||
Election of Mark Michel — Class III to serve until the annual meeting held during the 2028-2029 fiscal year |
48,537,592 | 2,546,092 | ||||||||||
Election of Sonya Morris — Class I to serve until the annual meeting held during the 2026-2027 fiscal year |
48,378,861 | 2,704,822 | ||||||||||
Re-election of David Flattum† |
48,057,043 | 3,026,644 | ||||||||||
Re-election of Alan Rappaport — Class III to serve until the annual meeting held during the 2028-2029 fiscal year |
47,108,310 | 3,975,372 | ||||||||||
† |
Interested Trustee |
The other members of the Board of Trustees at the time of the meeting, namely, Mses. Libby D. Cantrill, Sarah E. Cogan and Kathleen A. McCartney, continue to serve as Trustees of the Fund.
Annual Shareholder Meeting Results
PIMCO High Income Fund, PIMCO Income Strategy Fund and PIMCO Income Strategy Fund II held their annual meetings of shareholders on June 26, 2026. Shareholders voted as indicated below:
PIMCO High Income Fund — PHK
The Common Shareholders of PHK, voting as a single class, voted as indicated below with respect to the election of Mark Michel and Sonya Morris and
the re-election
of David Flattum as Trustees of PHK. Affirmative |
Withheld Authority |
|||||||||||
Election of Mark Michel — Class II to serve until the annual meeting held during the 2028-2029 fiscal year |
115,271,837 | 7,182,614 | ||||||||||
Election of Sonya Morris — Class III to serve until the annual meeting held during the 2026-2027 fiscal year |
115,144,929 | 7,309,522 | ||||||||||
Re-election of David Flattum† |
114,217,812 | 8,236,639 | ||||||||||
† |
Interested Trustee |
The other members of the Board of Trustees at the time of the meeting, namely, Mses. Libby D. Cantrill, Sarah E. Cogan and Kathleen A. McCartney and Mr. Alan Rappaport, continue to serve as Trustees of the Fund.
144 |
PIMCO CLOSED-END FUNDS |
| (Unaudited) |
PIMCO Income Strategy Fund — PFL
The Common Shareholders of PFL, voting as a single class, voted as indicated below with respect to the election of Mark Michel and Sonya Morris and the
re-election
of Kathleen A. McCartney as Trustees of PFL. Affirmative |
Withheld Authority |
|||||||||||
Election of Mark Michel — Class I to serve until the annual meeting held during the 2028-2029 fiscal year |
29,303,062 | 1,380,931 | ||||||||||
Election of Sonya Morris — Class III to serve until the annual meeting held during the 2027-2028 fiscal year |
29,299,509 | 1,384,484 | ||||||||||
Re-election of Kathleen A. McCartney — Class I to serve until the annual meeting held during the 2028-2029 fiscal year |
29,061,049 | 1,622,945 | ||||||||||
The other members of the Board of Trustees at the time of the meeting, namely, Mses. Libby D. Cantrill and Sarah E. Cogan and Messrs. David Flattum and Alan Rappaport, continue to serve as Trustees of the Fund.
PIMCO Income Strategy Fund II — PFN
The Common Shareholders of PFN, voting as a single class, voted as indicated below with respect to the election of Mark Michel and Sonya Morris and the
re-election
of Libby D. Cantrill as Trustees of PFN. Affirmative |
Withheld Authority |
|||||||||||
Election of Mark Michel — Class III to serve until the annual meeting held during the 2028-2029 fiscal year |
62,875,714 | 3,070,571 | ||||||||||
Election of Sonya Morris — Class II to serve until the annual meeting held during the 2027-2028 fiscal year |
61,798,784 | 4,147,498 | ||||||||||
Re-election of Libby D. Cantrill† |
62,241,644 | 3,704,638 | ||||||||||
† |
Interested Trustee |
The other members of the Board of Trustees at the time of the meeting, namely, Mses. Sarah E. Cogan and Kathleen A. McCartney and Messrs. David Flattum and Alan Rappaport, continue to serve as Trustees of the Fund.
ANNUAL REPORT |
| | JUNE 30, 2026 | 145 |
Changes to Board of Trustees |
(Unaudited) |
Effective September 18, 2025, the Board of Trustees appointed Mr. Mark Michel as a Class III Trustee of PIMCO Corporate & Income Strategy Fund and PIMCO Income Strategy Fund II, a Class II Trustee of PIMCO Corporate & Income Opportunity Fund and PIMCO High Income Fund, and a Class I Trustee of PIMCO Income Strategy Fund.
Effective September 18, 2025, the Board of Trustees appointed Ms. Sonya Morris as a Class III Trustee of PIMCO Corporate & Income Opportunity Fund, PIMCO High Income Fund and PIMCO Income Strategy Fund, a Class II Trustee of PIMCO Income Strategy Fund II, and a Class I Trustee of PIMCO Corporate & Income Strategy Fund.
Effective December 31, 2025, Ms. E. Grace Vandecruze retired from her position as Trustee of the Funds.
Effective January 1, 2026, Mr. Alan Rappaport was appointed Chair of the Trustees of the Funds, succeeding Ms. Deborah A. DeCotis.
Effective March 6, 2026, Ms. Deborah A. DeCotis retired from her position as Trustee of the Funds.
Effective May 8, 2026, Ms. Cogan, who was previously a Class II Trustee of PIMCO High Income Fund and a Class I Trustee of PIMCO Income Strategy Fund, became a Class III Trustee of PIMCO High Income Fund and a Class II Trustee of PIMCO Income Strategy Fund.
Effective May 8, 2026, Ms. McCartney, who was previously a Class III Trustee of PIMCO Income Strategy Fund II, became a Class I Trustee of PIMCO Income Strategy Fund II.
146 |
PIMCO CLOSED-END FUNDS |
Dividend Reinvestment Plan |
(Unaudited) |
Each Fund has adopted a Dividend Reinvestment Plan (the “Plan”) which allows common shareholders to reinvest Fund distributions in additional common shares of the Fund. Equiniti Trust Company, LLC (the “Plan Agent”) serves as agent for common shareholders in administering the Plan. It is important to note that participation in the Plan and automatic reinvestment of Fund distributions does not ensure a profit, nor does it protect against losses in a declining market.
Automatic enrollment/voluntary participation
Under the Plan, common shareholders whose shares are registered with the Plan Agent (“registered shareholders”) are automatically enrolled as participants in the Plan and will have all Fund distributions of income, capital gains and returns of capital (together, “distributions”) reinvested by the Plan Agent in additional common shares of a Fund, unless the shareholder elects to receive cash. Registered shareholders who elect not to participate in the Plan will receive all distributions in cash paid by check and mailed directly to the shareholder of record (or if the shares are held in street or other nominee name, to the nominee) by the Plan Agent. Participation in the Plan is voluntary. Participants may terminate or resume their enrollment in the Plan at any time without penalty by notifying the Plan Agent online at www.astfinancial.com, by calling (844) 33-PIMCO, by writing to the Plan Agent, Equiniti Trust Company, LLC, at P.O. Box 922, Wall Street Station, New York, NY 10269-0560, or, as applicable, by completing and returning the transaction form attached to a Plan statement. A proper notification will be effective immediately and apply to each Fund’s next distribution if received by the Plan Agent at least three (3) days prior to the record date for the distribution; otherwise, a notification will be effective shortly following the Fund’s next distribution and will apply to the Fund’s next succeeding distribution thereafter. If you withdraw from the Plan and so request, the Plan Agent will arrange for the sale of your shares and send you the proceeds, minus a transaction fee and brokerage commissions.
How shares are purchased under the Plan
For each Fund distribution, the Plan Agent will acquire common shares for participants either (i) through receipt of newly issued common shares from each Fund (“newly issued shares”) or (ii) by purchasing common shares of the Fund on the open market (“open market purchases”). If, on a distribution payment date, the net asset value per common share of a Fund (“NAV”) is equal to or less than the market price per common share plus estimated brokerage commissions (often referred to as a “market premium”), the Plan Agent will invest the distribution amount on behalf of participants in newly issued shares at a price equal to the greater of (i) NAV or (ii) 95% of the market price per common share on the payment date. If the NAV is greater than the market price per common shares plus estimated brokerage commissions (often referred to as a “market discount”) on a
distribution payment date, the Plan agent will instead attempt to invest the distribution amount through open market purchases. If the Plan Agent is unable to invest the full distribution amount in open market purchases, or if the market discount shifts to a market premium during the purchase period, the Plan Agent will invest any un-invested portion of the distribution in newly issued shares at a price equal to the greater of (i) NAV or (ii) 95% of the market price per share as of the last business day immediately prior to the purchase date (which, in either case, may be a price greater or lesser than the NAV per common shares on the distribution payment date). No interest will be paid on distributions awaiting reinvestment. Under the Plan, the market price of common shares on a particular date is the last sales price on the exchange where the shares are listed on that date or, if there is no sale on the exchange on that date, the mean between the closing bid and asked quotations for the shares on the exchange on that date.
The NAV per common share on a particular date is the amount calculated on that date (normally at the close of regular trading on the New York Stock Exchange) in accordance with each Fund’s then current policies.
Fees and expenses
No brokerage charges are imposed on reinvestments in newly issued shares under the Plan. However, all participants will pay a pro rata share of brokerage commissions incurred by the Plan Agent when it makes open market purchases. There are currently no direct service charges imposed on participants in the Plan, although each Fund reserves the right to amend the Plan to include such charges. The Plan Agent imposes a transaction fee (in addition to brokerage commissions that are incurred) if it arranges for the sale of your common shares held under the Plan.
Shares held through nominees
In the case of a registered shareholder such as a broker, bank or other nominee (together, a “nominee”) that holds common shares for others who are the beneficial owners, the Plan Agent will administer the Plan on the basis of the number of common shares certified by the nominee/record shareholder as representing the total amount registered in such shareholder’s name and held for the account of beneficial owners who are to participate in the Plan. If your common shares are held through a nominee and are not registered with the Plan Agent, neither you nor the nominee will be participants in or have distributions reinvested under the Plan. If you are a beneficial owner of common shares and wish to participate in the Plan, and your nominee is unable or unwilling to become a registered shareholder and a Plan participant on your behalf, you may request that your nominee arrange to have all or a portion of your shares re-registered with the Plan Agent in your name so that you may be enrolled as a participant in the Plan. Please contact your nominee for details or for other possible alternatives.
ANNUAL REPORT |
| | JUNE 30, 2026 | 147 |
Dividend Reinvestment Plan |
(Cont.) |
(Unaudited) |
Participants whose shares are registered with the Plan Agent in the name of one nominee firm may not be able to transfer the shares to another firm and continue to participate in the Plan.
Tax consequences
Automatically reinvested dividends and distributions are taxed in the same manner as cash dividends and distributions — i.e., automatic reinvestment in additional shares does not relieve shareholders of, or defer the need to pay, any income tax that may be payable (or that is required to be withheld) on Fund dividends and distributions. The Funds and the Plan Agent reserve the right to amend or terminate the Plan. Additional information about the Plan, as well as a copy of the full Plan itself, may be obtained from the Plan Agent, Equiniti Trust Company, LLC, at P.O. Box 922, Wall Street Station, New York, NY 10269-0560; telephone number: (844) 33-PIMCO; www.astfinancial.com.
148 |
PIMCO CLOSED-END FUNDS |
Additional Information Regarding the Funds |
(Unaudited) |
MATERIAL CHANGES OCCURRING SINCE THE PRIOR ANNUAL REPORT
The following information in this annual report is a summary of certain changes during the period since the date of the Funds’ last annual report to shareholders. This information may not reflect all of the changes that have occurred since you purchased shares of a Fund.
| 1. | Effective as of August 28, 2026, the 80% investment policies of each of PIMCO Corporate & Income Opportunity Fund and PIMCO Corporate & Income Strategy Fund is 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. |
| 2. | Effective as of June 24, 2026, each Fund is permitted to, as a principal investment strategy, invest in and/or originate loans. |
| 3. | Effective as of July 24, 2026, each of PIMCO Corporate & Income Opportunity Fund and PIMCO Corporate & Income Strategy Fund is permitted to invest without limitation in defaulted bonds, subject to the Fund’s other investment policies. |
| 4. | Effective as of July 24, 2026, PIMCO High Income Fund is permitted to invest without limitation in bank loans. |
Unresolved Staff Comments
None. (The Funds do not believe that there are any material unresolved written comments received 180 days or more before June 30, 2026 from the Staff of the SEC regarding any of the Funds’ periodic or current reports under the Securities Exchange Act or the 1940 Act, or their registration statements.)
Portfolio Transactions
The aggregate amounts of brokerage commissions paid by the Funds during the fiscal year ended June 30, 2026 were as follows:
Fund Name |
Total Commissions Paid |
Commissions Paid to Affiliated Brokers |
||||||||||
PIMCO Corporate & Income Opportunity Fund |
$ | 3,484 | $ | 0 | ||||||||
PIMCO Corporate & Income Strategy Fund |
1,572 | 0 | ||||||||||
PIMCO High Income Fund |
1,356 | 0 | ||||||||||
PIMCO Income Strategy Fund |
643 | 0 | ||||||||||
PIMCO Income Strategy Fund II |
1,123 | 0 | ||||||||||
ANNUAL REPORT |
| | JUNE 30, 2026 | 149 |
The Funds’ Investment Objectives and Strategies |
Unless otherwise noted, the information in this section is as of June 30, 2026.
The term “invest” includes both direct investing and indirect investing and the term “investments” includes both direct investments and indirect investments. For example, a Fund may invest indirectly by investing in derivatives or through its wholly-owned subsidiaries (“Subsidiaries”), if applicable. The allocation of a Fund’s assets to a Subsidiary, if applicable, will vary over time and will likely not include all of the different types of investments described herein at any given time.
PIMCO Corporate & Income Opportunity Fund (“PTY”)
Investment Objective and Policies
The Fund’s investment objective is to seek maximum total return through a combination of current income and capital appreciation. The Fund seeks to achieve its investment objective by utilizing a dynamic asset allocation strategy among multiple fixed-income sectors in the global credit markets, including corporate debt (including, among other things, fixed-, variable- and floating-rate bonds, loans (including, but not limited to, bank and/or other syndicated loans and
non-syndicated
(private direct) loans), convertible securities and stressed debt securities issued by U.S. or foreign (non-U.S.)
corporations or other business entities, including emerging market issuers), mortgage-related and other asset-backed securities, government and sovereign debt, taxable municipal bonds and other fixed-, variable- and floating-rate income-producing securities of U.S. and foreign issuers, including emerging market issuers. The Fund may invest in investment grade debt securities and below investment grade debt securities (commonly referred to as “high yield” securities or “junk bonds”), including securities of stressed, distressed and/or defaulted issuers. The types of securities and instruments in which the Fund may invest are summarized under “Portfolio Contents” below. The Fund cannot assure you that it will achieve its investment objectives or that the Fund’s investment program will be successful, and you could lose all of your investment in the Fund. Portfolio Management Strategies
Dynamic Allocation Strategy.
top-down
investment decisions, including geographic and credit sector emphasis, PIMCO manages the Fund with a focus on seeking income-generating investment ideas across multiple fixed income sectors, with an emphasis on seeking opportunities in developed and emerging global credit markets. PI
M
CO may choose to focus on particular countries/regions (e.g., U.S. vs. foreign), asset classes, industries and sectors to the exclusion of others at any time and from time to time based on market conditions and other factors. The relative value assessment within fixed-income sectors draws on PIMCO’s regional and sector specialist insights. The Fund will observe various investment guidelines as summarized below. Investment Selection Strategies.
top-down,
portfolio positioning decisions have been made as described above, PIMCO selects particular investments for the Fund by employing a bottom-up,
disciplined credit approach which is driven by fundamental, independent research within each sector/asset class represented in the Fund, with a focus on identifying securities and other instruments with solid and/or improving fundamentals. PIMCO utilizes strategies that focus on credit quality analysis, duration management and other risk management techniques. PIMCO attempts to identify, through fundamental research driven by independent credit analysis and proprietary analytical tools, debt obligations and other income-producing securities that provide current income and/or opportunities for capital appreciation based on its analysis of the issuer’s credit characteristics and the position of the security in the issuer’s capital structure.
Consideration of yield is only one component of the portfolio managers’ approach in managing the Fund. PIMCO also attempts to identify investments that may appreciate in value based on PIMCO’s assessment of the issuer’s credit characteristics, forecast for interest rates and outlook for particular countries/regions, currencies, industries, sectors and the global economy and bond markets generally.
Credit Quality.
BBB-
by either S&P Global Ratings (“S&P”) or Fitch Ratings, Inc. (“Fitch”)), or that are unrated but determined to be of comparable quality. The Fund will not normally invest more than 20% of its total assets in debt instruments, other than mortgage-related and other asset-backed securities, that are, at the time of purchase, rated CCC+ or lower by S&P and Fitch and Caa1 or lower by Moody’s, or that are unrated but determined by PIMCO to be of comparable quality. The Fund may invest without limit in mortgage-related and other asset-backed securities regardless of rating (i.e., of any credit quality). Subject to this 20% restriction, the Fund may invest in issuers of any credit quality (including bonds in the lowest ratings categories) or that are unrated. For purposes of applying the foregoing policies, in the case of securities with split ratings (i.e., a security receiving two different ratings from two different rating agencies), the Fund will apply the higher of the applicable ratings. Subject to the aforementioned investment 150 |
PIMCO CLOSED-END FUNDS |
| (Unaudited) |
restrictions, the Fund may invest in securities of stressed, distressed or defaulted issuers, which include securities at risk of being in default as to the repayment of principal and/or interest at the time of acquisition by the Fund or that are rated in the lower rating categories by one or more nationally recognized statistical rating organizations (for example, Ca or lower by Moody’s or CC or lower by S&P or Fitch) or, if unrated, are determined by PIMCO to be of comparable quality. Debt instruments of below investment grade quality are regarded as having predominantly speculative characteristics with respect to capacity to pay interest and to repay principal, and are commonly referred to as “high yield” securities or “junk bonds.” Debt instruments in the lowest investment grade category also may be considered to possess some speculative characteristics. The Fund may, for hedging, investment or leveraging purposes, make use of credit default swaps, which are contracts whereby one party makes periodic payments to a counterparty in exchange for the right to receive from the counterparty a payment equal to the par (or other agreed-upon) value of a referenced debt obligation in the event of a default or other credit event by the issuer of the debt obligation.
Independent Credit Analysis.
Duration Management.
of the Fund’s portfolio for every year of negative duration. A negative average portfolio duration would potentially benefit the portfolio in an environment of rising market interest rates but would generally adversely impact the portfolio in an environment of falling or neutral market interest rates. The Fund may use various derivatives strategies to manage (increase or decrease) the dollar-weighted average effective duration of the Fund’s portfolio.
PIMCO may also utilize certain strategies, including without limit investments in structured notes or interest rate futures contracts or swap, cap, floor or collar transactions, for the purpose of reducing the interest rate sensitivity of the Fund’s portfolio, although there is no assurance that it will do so or that such strategies will be successful. The foregoing is a description of interest rate duration management only. The credit spread duration of the Fund’s portfolio may vary, in some cases significantly, from its interest rate duration.
Portfolio Contents
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 Fund’s investments in derivatives and other synthetic instruments that have economic characteristics similar to corporate debt obligations of varying maturities, other corporate income-producing securities, and income-producing securities of non-corporate
issuers will be counted toward satisfaction of this 80% Policy. Income-producing investments may include income-producing Fixed Income Instrument investments (as defined below), 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 Instrument,” investments, as used generally herein, 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; |
ANNUAL REPORT |
| | JUNE 30, 2026 | 151 |
The Funds’ Investment Objectives and Strategies |
(Cont.) |
∎ |
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. 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 80% Policy or to one or more of the market risk factors associated with investments included in that 80% Policy.
Corporate income-producing securities include fixed-, variable- and floating-rate bonds, debentures, notes and other similar types of corporate debt instruments, such as preferred shares, convertible securities, loans (including, but not limited to, bank and/or other syndicated loans and securities,
non-syndicated
(private direct) loans) and loan participations and assignments, payment-in-kind
step-ups,
zero-coupon
bonds, bank capital securities, bank certificates of deposit, fixed time deposits and bankers’ acceptances, stressed debt securities, structured notes and other hybrid instruments. Certain corporate income-producing securities, such as convertible bonds, also may include the right to participate in equity appreciation, and PIMCO will generally evaluate those instruments based primarily on their debt characteristics. The Fund normally invests at least 50% of its total assets in corporate debt obligations and other corporate securities, including fixed-, variable- and floating-rate bonds, debentures, notes and other similar types of corporate debt instruments, such as preferred shares, convertible securities, bank loans and loan participations and assignments, securities (including partial loans and bonds),
payment-in-kind
payment-in-kind
step-ups,
zero-coupon
bonds, bank capital securities, bank certificates of deposit, fixed time deposits and bankers’ acceptances, stressed debt securities, structured notes and other hybrid instruments, common stocks and other equity securities. In satisfying the Fund’s 80% Policy, the Fund may invest in mortgage-related securities, including mortgage pass-through securities (e.g., securities representing interests in “pools” of mortgage loans secured by residential or commercial real property), collateralized mortgage obligations (“CMOs”), commercial or residential mortgage-backed securities, mortgage dollar rolls/buybacks, CMO residuals, adjustable rate mortgage-backed securities, stripped mortgage-backed securities (“SMBSs”) (e.g., a type of mortgage-backed security that receives differing proportions of the interest and principal payments from the underlying assets), and other securities that directly or indirectly represent a participation in, or are secured by and payable from, mortgage loans on real property, debt instruments, including, without limit, bonds, debentures, notes, and other debt securities of U.S. and foreign financings. For tax or other structuring reasons, the Fund may purchase a loan or debt investment structured as an equity interest (e.g., a joint venture interest). Subject to the investment limitations described above, at any given time and from time to time, substantially all of the Fund’s portfolio may consist of below investment grade securities.
(non-U.S.)
corporate and other issuers, including commercial paper; obligations of foreign governments or their sub-divisions,
agencies and government sponsored enterprises and obligations of international agencies and supranational entities; municipal securities and other debt securities issued by states or local governments and their agencies, authorities and other government-sponsored enterprises, including taxable municipal securities (such as Build America Bonds); inflation-indexed bonds issued by both governments and corporations; insurance-linked instruments, catastrophe bonds and other event-linked bonds; credit-linked trust certificates; structured notes, including hybrid or indexed securities; credit-linked notes; structured credit products; loans (including, among others, and without limit as to a loan’s level of seniority within a capital structure, senior loans, subordinated loans, mezzanine loans, delayed draw and delayed funding loans, covenant-lite obligations, revolving credit facilities and loan participations and assignments); preferred securities and convertible debt securities (i.e., debt securities that may be converted at either a stated price or stated rate into underlying shares of common stock), including synthetic convertible debt securities (i.e., instruments created through a combination of separate securities that possess the two principal characteristics of a traditional convertible security, such as an income-producing security and the right to acquire an equity security) and contingent convertible securities. The Fund may invest in debt securities of stressed issuers, distressed and/or defaulted issuers in debtor-in-possession
The Fund may invest in various levels of the capital structure of an issuer of mortgage-backed or asset-backed securities (including collateralized
152 |
PIMCO CLOSED-END FUNDS |
| (Unaudited) |
bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other collateralized debt obligations (“CDOs”)), including the equity or “first loss” tranche. The Fund may invest in unsecured loans and subordinated or mezzanine obligations, including second and lower lien loans and the mezzanine and equity (or “first loss”) tranches of CLO issues. For the avoidance of doubt, equity or “first loss” tranches of mortgage-backed or asset-backed securities do not constitute equity interests for purposes of the Fund’s 20% limit on investments in equity interests described below. The Fund may also invest, as a third-party purchaser, in risk retention tranches of CMBS or other eligible securitizations, which are eligible residual interests typically held by the sponsors of such securitizations pursuant to the final rules implementing the credit risk retention requirements of Section 941 of the Dodd-Frank Act. The rate of interest on an income-producing security may be fixed, floating or variable, and may move in the opposite direction to interest rates generally or the interest rate on another security or index (i.e., inverse floaters).
The Fund may invest without limit in
non-U.S.
dollar denominated securities (of both developed and emerging market countries), including obligations of non-U.S.
governments and their respective sub-divisions,
agencies and government-sponsored enterprises. The Fund may invest up to 40% of its total assets in securities and instruments that are economically tied to emerging market countries, except the Fund may invest without limit in investment grade sovereign debt that is issued by emerging market issuers that is denominated in the relevant country’s local currency with less than 1 year remaining to maturity. The Fund may also invest directly in foreign currencies, including local emerging market currencies. The Fund may, but is not required to, utilize various derivative strategies (both long and short positions) involving the purchase or sale of futures and forward contracts (including foreign currency exchange contracts), call and put options, credit default swaps, total return swaps, basis swaps and other swap agreements and other derivative instruments for investment purposes, leveraging purposes or in an attempt to hedge against market, credit, interest rate, currency and other risks in the portfolio. The Fund may purchase and sell securities on a when-issued, delayed delivery or forward commitment basis and may engage in short sales. The Fund may use derivative instruments for other purposes, including to seek to increase liquidity, provide efficient portfolio management, broaden investment opportunities (including taking short or negative positions), implement a tax or cash management strategy, gain exposure to a particular security or segment of the market, modify the effective duration of the Fund’s portfolio investments and/or enhance total return.
The Fund may invest up to 20% of its total assets in common stocks and other equity securities from time to time, including those it has
received through the conversion of a convertible security held by the Fund or in connection with the restructuring of a debt security. Common stocks include common shares and other common equity interest issued by public or private issuers.
The Fund may invest in and/or originate loans, including, without limit, residential and/or commercial real estate or mortgage-related loans, consumer loans or other types of loans, which may be in the form of, and without limit as to a loan’s level of seniority within a capital structure, whole loans, assignments, participations, secured and unsecured notes, senior and second lien loans, mezzanine loans, bridge loans or similar investments, including to borrowers that are unrated or have credit ratings that are determined by one or more nationally recognized statistical rating organizations (“NRSROs”) and/or PIMCO to be below investment grade. The Fund may invest in and/or originate loans to corporations and/or other legal entities and individuals, including
foreign (non-U.S.) entities
and individuals. The loans the Fund invests in and/or originates may vary in maturity and/or duration. The Fund is not limited in the amount, size or type of loans it may invest in and/or originate, including with respect to a single borrower or with respect to borrowers that are determined to be below investment grade, other than pursuant to any applicable law. The Fund’s investments in and/or origination of loans may also be limited by the Fund’s intention to continue to qualify as a regulated investment company (“RIC”). When acquiring and/or originating loans, the Fund is not restricted by any particular borrower credit criteria. Accordingly, certain loans acquired or originated by the Fund may be subprime in quality, or may become subprime in quality. The Fund may invest in securities that have not been registered for public sale in the U.S. or relevant
non-U.S.
jurisdictions, including without limit securities eligible for purchase and sale pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), or relevant provisions of applicable non-U.S.
law, and other securities issued in private placements. The Fund may invest in securities of other open- or closed-end
investment companies (including those advised by PIMCO), including, without limit, exchange-traded funds (“ETFs”), to the extent that such investments are consistent with the Fund’s investment objectives, strategies and policies and permissible under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund may invest in other investment companies to gain broad market or sector exposure or for cash management purposes, including during periods when it has large amounts of uninvested cash or when PIMCO believes share prices of other investment companies offer attractive values. The Fund may invest in certain money market funds and/or short-term bond funds (“Central Funds”), to the extent permitted by the 1940 Act, the rules thereunder or exemptive relief therefrom. The Central Funds are ANNUAL REPORT |
| | JUNE 30, 2026 | 153 |
The Funds’ Investment Objectives and Strategies |
(Cont.) |
registered investment companies created for use by certain registered investment companies advised by PIMCO in connection with their cash management activities. The Fund treats its investments in other investment companies that invest primarily in types of securities in which the Fund may invest directly as investments in such types of securities for purposes of the Fund’s investment policies (e.g., the Fund’s investment in an investment company that invests primarily in debt securities will be treated by the Fund as an investment in a debt security). As a shareholder in an investment company, the Fund would bear its ratable share of that investment company’s expenses and would remain subject to payment of the Fund’s management fees and other expenses with respect to assets so invested. The holders of the Common Shares (“Common Shareholders”) would therefore be subject to duplicative expenses to the extent the Fund invests in other investment companies. The securities of other investment companies may be leveraged, in which case the NAV and/or market value of the investment company’s shares will be more volatile than unleveraged investments. The Fund may invest in real estate investment trusts. The Fund may invest in securities of companies with any market capitalization, including small and medium capitalizations.
The Fund may invest without limit in illiquid investments (i.e., investments that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment).
The Fund may enter into repurchase agreements, in which the Fund purchases a security from a bank or broker-dealer and the bank or broker-dealer agrees to repurchase the security at the Fund’s cost plus interest within a specified time.
A change in the securities held by the Fund is known as “portfolio turnover.” The Fund may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. Frequent and active trading of the Fund’s portfolio holdings may cause adverse tax consequences for shareholders due to an increase in short-term capital gains and may also adversely impact the Fund’s
after-tax
returns. There have been no significant changes in the Fund’s portfolio turnover rates over the last two fiscal years, and no significant change to the portfolio turnover rates of the Fund described in the Financial Highlights can currently be predicted.
The Fund may lend its portfolio securities to brokers, dealers or other financial institutions provided a number of conditions are satisfied, including that the loan is fully collateralized.
The Fund has received exemptive relief from the SEC that, to the extent the Fund relies on such relief, permits it to (among other things)
co-invest
with certain other persons, including certain affiliates of the Investment Manager and certain public or private funds managed by the Investment Manager and its affiliates, subject to certain terms and conditions. The exemptive relief from the SEC with respect to co-investments
imposes extensive conditions on any co-investments
made in reliance on such relief. Temporary defensive investments.
Use of Leverage
The Fund currently utilizes leverage principally through its reverse repurchase agreements and may also obtain additional leverage through dollar rolls/buybacks or borrowings, such as through bank loans or commercial paper and/or other credit facilities. The Fund may also determine to issue preferred shares or other types of senior securities to add leverage to its portfolio. By using leverage, the Fund will seek to obtain a higher return for holders of Common Shares than if the Fund did not use leverage. The Fund’s Board may authorize the issuance of preferred shares without the approval of Common Shareholders. If the Fund issues preferred shares in the future, all costs and expenses relating to the issuance and ongoing maintenance of the preferred shares will be borne by the Common Shareholders, and these costs and expenses may be significant. The amount of leverage the Fund utilizes may vary but total leverage resulting from the issuance of preferred shares and senior securities representing indebtedness of the Fund will not exceed 50% of the Fund’s total assets less all liabilities and indebtedness not represented by senior securities. Leveraging transactions pursued by the Fund may increase its duration and sensitivity to interest rate movements. Leveraging is a speculative technique and there are special risks and costs involved. There can be no assurance that a leveraging strategy will be used or that it will be successful during any period in which it is employed.
The Fund may also enter into transactions other than those noted above that may give rise to a form of leverage including, among others, futures and forward contracts (including foreign currency exchange contracts), total return swaps and other derivative transactions, loans of portfolio securities, short sales, when-issued, delayed delivery and forward commitment transactions and selling
154 |
PIMCO CLOSED-END FUNDS |
| (Unaudited) |
credit default swaps. The Fund may also determine to issue other types of preferred shares.
The Fund utilizes certain kinds of leverage, such as reverse repurchase agreements and selling credit default swaps, opportunistically and may choose to increase or decrease, or eliminate entirely, its use of such leverage over time and from time to time based on PIMCO’s assessment of the yield curve environment, interest rate trends, market conditions and other factors.
The Fund also may borrow money for temporary purposes, to add leverage to the portfolio or for the settlement of securities transactions which otherwise might require untimely dispositions of portfolio securities held by the Fund.
PIMCO Corporate & Income Strategy Fund (“PCN”)
Investment Objectives and Policies
The Fund’s primary investment objective is to seek high current income. Capital preservation and appreciation are secondary objectives.
The Fund seeks to achieve its investment objectives by utilizing a dynamic asset allocation strategy among multiple fixed income sectors in the global credit markets, including corporate debt (including, among other things, fixed-, variable- and floating-rate bonds, bank loans, convertible securities and stressed debt securities issued by U.S. or foreign
(non-U.S.)
corporations or other business entities, including emerging market issuers), mortgage-related and other asset-backed securities, government and sovereign debt, taxable municipal bonds and other fixed-, variable- and floating-rate income-producing securities of U.S. and foreign issuers, including emerging market issuers. The Fund may invest in investment grade debt securities and below investment grade debt securities (commonly referred to as “high yield” securities or “junk bonds”), including securities of stressed, distressed and/or defaulted issuers. The types of securities and instruments in which the Fund may invest are summarized under “Portfolio Contents” below. The Fund cannot assure you that it will achieve its investment objectives, and you could lose all of your investment in the Fund. Portfolio Management Strategies
Dynamic Allocation Strategy.
top-down
investment decisions, including geographic and credit sector emphasis, PIMCO manages the Fund with a focus on seeking income-generating investment ideas across multiple fixed income sectors, with an emphasis on seeking opportunities in developed and emerging global credit markets. PIMCO may choose to focus on particular countries/regions (e.g., U.S. vs. foreign), asset classes, industries and sectors to the exclusion of others at any time and from time to time based on market conditions and other factors. For example, subject to the Fund’s investment policies and limitations, the Fund may invest a substantial portion of its total assets in mortgage-related and other asset-backed securities, which investments PIMCO may choose to increase or decrease, or eliminate entirely, over time and from time to time. The relative value assessment within fixed-income sectors draws on PIMCO’s regional and sector specialist insights. The Fund will observe various investment guidelines as summarized below.
Investment Selection Strategies.
top-down,
portfolio positioning decisions have been made as described above, PIMCO selects particular investments for the Fund by employing a bottom-up,
disciplined credit approach which is driven by fundamental, independent research within each sector/asset class represented in the Fund, with a focus on identifying securities and other instruments with solid and/or improving fundamentals. PIMCO utilizes strategies that focus on credit quality analysis, duration management and other risk management techniques. PIMCO attempts to identify, through fundamental research driven by independent credit analysis and proprietary analytical tools, debt obligations and other income-producing securities that provide current income and/or opportunities for capital appreciation based on its analysis of the issuer’s credit characteristics and the position of the security in the issuer’s capital structure. Consideration of yield is only one component of the portfolio managers’ approach in managing the Fund. PIMCO attempts to identify investments that may appreciate in value based on PIMCO’s assessment of the issuer’s credit characteristics, forecast for interest rates and outlook for particular countries/regions, currencies, industries, sectors and the global economy and bond markets generally.
Credit Quality.
BBB-
by either S&P Global Ratings (“S&P”) or Fitch Ratings, Inc. (“Fitch”)), or that are unrated but determined by PIMCO to be of comparable quality The Fund will not normally invest more than 20% of its total assets in debt instruments, other than mortgage-related and other asset-backed securities, that are, at the time of purchase, rated CCC+ or lower by S&P and Fitch and Caa1 or lower by Moody’s, or that are unrated but determined by PIMCO to be of comparable quality to securities so rated. The Fund may invest without limit in mortgage-related and other asset-backed securities regardless of rating (i.e., of any credit ANNUAL REPORT |
| | JUNE 30, 2026 | 155 |
The Funds’ Investment Objectives and Strategies |
(Cont.) |
quality). Subject to this 20% restriction, the Fund may invest in issuers of any credit quality (including bonds in the lowest ratings categories) or that are unrated. For purposes of applying the foregoing policies, in the case of securities with split ratings (i.e., a security receiving two different ratings from two different rating agencies), the Fund will apply the higher of the applicable ratings. Subject to the aforementioned investment guidelines, the Fund may invest in securities of stressed, distressed and/or defaulted issuers, which include securities in default as to the repayment of principal and/or interest at the time of acquisition by the Fund or that are rated in the lower rating categories by one or more nationally recognized statistical rating organizations (“NRSROs”) (for example, Ca or lower by Moody’s or CC or lower by S&P or Fitch) or, if unrated, are determined by PIMCO to be of comparable quality, and in financing. Debt instruments of below investment grade quality, and in financings, are regarded as having predominantly speculative characteristics with respect to capacity to pay interest and to repay principal, and are commonly referred to as “high yield” securities or “junk bonds.” Debt instruments in the lowest investment grade category also may be considered to possess some speculative characteristics. The Fund may, for hedging, investment or leveraging purposes, make use of credit default swaps (which includes buying and/or selling credit default swaps), which are contracts whereby one party makes periodic payments to a counterparty in exchange for the right to receive from the counterparty a payment equal to the par (or other agreed-upon) value of a referenced debt obligation in the event of a default or other credit event by the issuer of the debt obligation.
debtor-in-possession
debtor-in-possession
Independent Credit Analysis.
Duration Management.
interest rates would tend to correspond to an 8% decrease in the value of the Fund’s debt portfolio. The Fund’s duration strategy may entail maintaining a negative average portfolio duration from time to time, meaning the portfolio would tend to increase in value in response to an increase in interest rates. For example, if the Fund has a negative average portfolio duration, a 1% increase in interest rates would tend to correspond to a 1% increase in the value of the Fund’s debt portfolio for every year of negative duration. A negative average portfolio duration would potentially benefit the portfolio in an environment of rising market interest rates, but would generally adversely impact the portfolio in an environment of falling or neutral market interest rates. The Fund may use various derivatives strategies to manage (increase or decrease) the dollar-weighted average effective duration of the Fund’s portfolio.
PIMCO may also utilize certain strategies, including without limit investments in structured notes or interest rate futures contracts or swap, cap, floor or collar transactions, for the purpose of reducing the interest rate sensitivity of the Fund’s portfolio, although there is no assurance that it will do so or that such strategies will be successful. The foregoing is a description of interest rate duration management only. The credit spread duration of the Fund’s portfolio may vary, in some cases significantly, from its interest rate duration.
Portfolio Contents
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”). 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 Instrument,” investments, as used generally herein, 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; |
156 |
PIMCO CLOSED-END FUNDS |
| (Unaudited) |
∎ |
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. 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 80% Policy or to one or more of the market risk factors associated with investments included in that 80% Policy.
Corporate income-producing securities include fixed-, variable- and floating-rate bonds, debentures, notes and other similar types of corporate debt instruments, such as preferred shares, convertible securities, loans (including, but not limited to, bank and/or other syndicated loans and securities, securities (including partial loans and bonds),
non-syndicated
(private direct) loans) and loan participations and assignments, payment-in-kind
step-ups,
zero-coupon
bonds, bank capital securities, bank certificates of deposit, fixed time deposits and bankers’ acceptances, stressed debt securities, structured notes and other hybrid instruments. Certain corporate income-producing securities, such as convertible bonds, also may include the right to participate in equity appreciation, and PIMCO will generally evaluate those instruments based primarily on their debt characteristics. The Fund normally invests at least 50% of its total assets in corporate debt obligations and other corporate securities, including fixed-, variable- and floating-rate bonds, debentures, notes and other similar types of corporate debt instruments, such as preferred shares, convertible securities, bank loans and loan participations and assignments, payment-in-kind
payment-in-kind
step-ups,
zero-coupon
bonds, bank capital securities, bank certificates of deposit, fixed time deposits and bankers’ acceptances, stressed debt securities, structured notes and other hybrid instruments, common stocks and other equity securities. In satisfying the Fund’s 80% Policy, the Fund may invest in mortgage-related securities, including mortgage pass-through securities (e.g., securities representing interests in “pools” of mortgage loans secured by residential or commercial real property), collateralized mortgage obligations (“CMOs”), commercial or residential mortgage-backed securities, mortgage dollar rolls/buybacks, CMO residuals, adjustable rate mortgage-backed securities, stripped mortgage-backed securities (“SMBSs”) (e.g., a type of mortgage-backed security that receives differing proportions of the interest and principal payments from the underlying assets) and other securities that directly or indirectly represent a participation in, or are secured by and payable from, mortgage loans on real property, debt instruments, including, without limit, bonds, debentures, notes, and other debt securities of U.S. and foreign financings. For tax or other structuring reasons, the Fund may purchase loan or debt investment structured as an equity interest (e.g., a joint venture interest). Subject to the investment limitations described above, at any given time and from time to time, substantially all of the Fund’s portfolio may consist of below investment grade securities. The Fund may
(non-U.S.)
corporate and other issuers, including commercial paper; obligations of foreign governments or their sub-divisions,
agencies and government sponsored enterprises and obligations of international agencies and supranational entities; municipal securities and other debt securities issued by states or local governments and their agencies, authorities and other government-sponsored enterprises, including taxable municipal securities (such as Build America Bonds); inflation-indexed bonds issued by both governments and corporations; insurance-linked instruments, catastrophe bonds and other event-linked bonds; credit-linked trust certificates; structured notes, including hybrid or indexed securities; credit-linked notes; structured credit products; loans (including, among others, and without limit as to a loan’s level of seniority within a capital structure, senior loans, subordinated loans, mezzanine loans, delayed draw and delayed funding loans, covenant-lite obligations, revolving credit facilities and loan participations and assignments); preferred securities and convertible debt securities (i.e., debt securities that may be converted at either a stated price or stated rate into underlying shares of common stock), including synthetic convertible debt securities (i.e., instruments created through a combination of separate securities that possess the two principal characteristics of a traditional convertible security, such as an income-producing security and the right to acquire an equity security) and contingent convertible securities (“CoCos”). The Fund may invest in debt securities of stressed, distressed and/or defaulted issuers in debtor-in-possession
ANNUAL REPORT |
| | JUNE 30, 2026 | 157 |
The Funds’ Investment Objectives and Strategies |
(Cont.) |
invest in various levels of the capital structure of an issuer of mortgage-backed or asset-backed securities (including collateralized bond obligations, collateralized loan obligations (“CLOs”) and other collateralized debt obligations), including the equity or “first loss” tranche. The Fund may invest in unsecured loans and subordinated or mezzanine obligations, including second and lower lien loans and the mezzanine and equity (or “first loss”) tranches of CLO issues. For the avoidance of doubt, equity or “first loss” tranches of mortgage-backed or asset-backed securities do not constitute equity interests for purposes of the Fund’s 20% limit on investments in equity interests described below. The Fund may also invest, as a third party purchaser, in risk retention tranches of CMBS or other eligible securitizations, which are eligible residual interests typically held by the sponsors of such securitizations pursuant to the final rules implementing the credit risk retention requirements of Section 941 of the Dodd-Frank Act. The rate of interest on an income-producing security may be fixed, floating or variable, and may move in the opposite direction to interest rates generally or the interest rate on another security or index (i.e., inverse floaters).
The Fund may invest without limit in
non-U.S.
dollar denominated securities (of both developed and emerging market countries), including obligations of non-U.S.
governments and their respective sub-divisions,
agencies and government-sponsored enterprises. The Fund may invest up to 40% of its total assets in securities and instruments that are economically tied to emerging market countries, except the Fund may invest without limit in investment grade sovereign debt that is issued by emerging market issuers that is denominated in the relevant country’s local currency with less than 1 year remaining to maturity. The Fund may also invest directly in foreign currencies, including local emerging market currencies. The Fund may, but is not required to, utilize various derivative strategies (both long and short positions) involving the purchase or sale of futures and forward contracts (including foreign currency exchange contracts), call and put options, credit default swaps, total return swaps, basis swaps and other swap agreements and other derivative instruments for investment purposes, leveraging purposes or in an attempt to hedge against market, credit, interest rate, currency and other risks in the portfolio. The Fund may purchase and sell securities on a when-issued, delayed delivery or forward commitment basis and may engage in short sales. The Fund may use derivative instruments for other purposes, including to seek to increase liquidity, provide efficient portfolio management, broaden investment opportunities (including taking short or negative positions), implement a tax or cash management strategy, gain exposure to a particular security or segment of the market, modify the effective duration of the Fund’s portfolio investments and/or enhance total return.
The Fund may invest up to 20% of its total assets in common stocks and other equity securities from time to time, including those it has received through the conversion of a convertible security held by the Fund or in connection with the restructuring of a debt security.
Common stocks include common shares and other common equity interest issued by public or private issuers.
The Fund may invest in and/or originate loans, including, without limit, residential and/or commercial real estate or mortgage-related loans, consumer loans or other types of loans, which may be in the form of, and without limit as to a loan’s level of seniority within a capital structure, whole loans, assignments, participations, secured and unsecured notes, senior and second lien loans, mezzanine loans, bridge loans or similar investments, including to borrowers that are unrated or have credit ratings that are determined by one or more NRSROs and/or PIMCO to be below investment grade. The Fund may invest in and/or originate loans to corporations and/or other legal entities and individuals,
including foreign (non-U.S.) entities
and individuals. The loans the Fund invests in and/or originates may vary in maturity and/or duration. The Fund is not limited in the amount, size or type of loans it may invest in and/or originate, including with respect to a single borrower or with respect to borrowers that are determined to be below investment grade, other than pursuant to any applicable law. The Fund’s investments in and/or origination of loans may also be limited by the Fund’s intention to continue to qualify as a regulated investment company (“RIC”). When acquiring and/or originating loans, the Fund is not restricted by any particular borrower credit criteria. Accordingly, certain loans acquired or originated by the Fund may be subprime in quality or may become subprime in quality. The Fund may invest in securities that have not been registered for public sale in the U.S. or relevant
non-U.S.
jurisdictions, including without limit securities eligible for purchase and sale pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), or relevant provisions of applicable non-U.S.
law, and other securities issued in private placements. The Fund may invest in securities of other open- or closed-end
investment companies (including those advised by PIMCO), including, without limit, exchange-traded funds (“ETFs”), to the extent that such investments are consistent with the Fund’s investment objectives, strategies and policies and permissible under the 1940 Act. The Fund may invest in other investment companies to gain broad market or sector exposure or for cash management purposes, including during periods when it has large amounts of uninvested cash or when PIMCO believes share prices of other investment companies offer attractive values. The Fund may invest in certain money market funds and/or short-term bond funds (“Central Funds”), to the extent permitted by the 1940 Act, the rules thereunder or exemptive relief therefrom. The Central Funds are 158 |
PIMCO CLOSED-END FUNDS |
| (Unaudited) |
registered investment companies created for use by certain registered investment companies advised by PIMCO in connection with their cash management activities. The Fund treats its investments in other investment companies that invest primarily in types of securities in which the Fund may invest directly as investments in such types of securities for purposes of the Fund’s investment policies (e.g., the Fund’s investment in an investment company that invests primarily in debt securities will be treated by the Fund as an investment in a debt security). As a shareholder in an investment company, the Fund would bear its ratable share of that investment company’s expenses and would remain subject to payment of the Fund’s management fees and other expenses with respect to assets so invested. The holders of the Common Shares (the “Common Shareholders”) would therefore be subject to duplicative expenses to the extent the Fund invests in other investment companies. The securities of other investment companies may be leveraged, in which case the NAV and/or market value of the investment company’s shares will be more volatile than unleveraged investments. The Fund may invest in real estate investment trusts. The Fund may invest in securities of companies with any market capitalization, including small and medium capitalizations.
The Fund may invest without limit in illiquid investments (i.e., investments that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment).
The Fund may enter into repurchase agreements, in which the Fund purchases a security from a bank or broker-dealer and the bank or broker-dealer agrees to repurchase the security at the Fund’s cost plus interest within a specified time.
The Fund may lend its portfolio securities to brokers, dealers or other financial institutions provided a number of conditions are satisfied, including that the loan is fully collateralized.
A change in the securities held by the Fund is known as “portfolio turnover.” The Fund may engage in frequent and active trading of portfolio securities to achieve its investment objectives, particularly during periods of volatile market movements. Frequent and active trading of the Fund’s portfolio holdings may cause adverse tax consequences for shareholders due to an increase in short-term capital gains and may also adversely impact the Fund’s
after-tax
returns. There have been no significant changes in the Fund’s portfolio turnover rates over the last two fiscal years, and no significant change to the portfolio turnover rates of the Fund described in the Financial Highlights can currently be predicted.
The Fund has received exemptive relief from the SEC that, to the extent the Fund relies on such relief, permits it to (among other things)
co-invest
with certain other persons, including certain affiliates of the Investment Manager and certain public or private funds managed by the Investment Manager and its affiliates, subject to certain terms and conditions. The exemptive relief from the SEC with respect to co-investments
imposes extensive conditions on any co-investments
made in reliance on such relief. Temporary defensive investments.
Use of Leverage
The Fund currently utilizes leverage principally through its reverse repurchase agreements and may also obtain additional leverage through dollar rolls/buybacks or borrowings, such as through bank loans or commercial paper and/or other credit facilities. The Fund may also determine to issue preferred shares or other types of senior securities to add leverage to its portfolio. By using leverage, the Fund will seek to obtain a higher return for holders of Common Shares than if the Fund did not use leverage. The Fund’s Board may authorize the issuance of preferred shares without the approval of Common Shareholders. If the Fund issues preferred shares in the future, all costs and expenses relating to the issuance and ongoing maintenance of the preferred shares will be borne by the Common Shareholders, and these costs and expenses may be significant. The amount of leverage the Fund utilizes may vary but total leverage resulting from the issuance of preferred shares and senior securities representing indebtedness of the Fund will not exceed 50% of the Fund’s total assets less all liabilities and indebtedness not represented by senior securities. Leveraging transactions pursued by the Fund may increase its duration and sensitivity to interest rate movements. Leveraging is a speculative technique and there are special risks and costs involved. There can be no assurance that a leveraging strategy will be used or that it will be successful during any period in which it is employed.
The Fund may also enter into transactions other than those noted above that may give rise to a form of leverage including, among others, selling credit default swaps, futures and forward contracts (including foreign currency exchange contracts), total return swaps and other derivative transactions, loans of portfolio securities, short
ANNUAL REPORT |
| | JUNE 30, 2026 | 159 |
The Funds’ Investment Objectives and Strategies |
(Cont.) |
sales and when-issued, delayed delivery and forward commitment transactions. The Fund may also determine to issue other types of preferred shares.
The Fund utilizes certain kinds of leverage, such as reverse repurchase agreements and credit default swaps, opportunistically and may choose to increase or decrease, or eliminate entirely, its use of such leverage over time and from time to time based on PIMCO’s assessment of the yield curve environment, interest rate trends, market conditions and other factors.
The Fund also may borrow money for temporary purposes, to add leverage to the portfolio or for the settlement of securities transactions which otherwise might require untimely dispositions of portfolio securities held by the Fund.
PIMCO High Income Fund (“PHK”)
Investment Objectives and Policies
The Fund’s primary investment objective is to seek high current income, with capital appreciation as a secondary objective. The Fund’s investment objectives are considered
non-fundamental
and may be changed by the Board without shareholder approval. The Fund seeks to achieve its investment objectives by utilizing a dynamic asset allocation strategy among multiple fixed income sectors in the global credit markets, which may include corporate debt (including, among other things, fixed-, variable- and floating-rate bonds, loans (including, but not limited to, bank and/or other syndicated loans and
non-syndicated
(private direct) loans), convertible securities and stressed debt securities issued by U.S. or foreign (non-U.S.)
corporations or other business entities, including emerging market issuers), mortgage-related and other asset-backed securities, government and sovereign debt, taxable municipal bonds and other fixed-, variable- and floating-rate income-producing securities of U.S. and foreign issuers, including emerging market issuers. Aiming to identify securities that provide high current income and/or capital appreciation, the Fund focuses on duration management, credit quality analysis, risk management techniques and broad diversification among issuers, industries and sectors as well as other risk management techniques designed to manage default risk. The Fund may invest in investment grade debt securities and below investment grade debt securities (commonly referred to as “high yield” securities or “junk bonds”), including securities of stressed, distressed and/or defaulted issuers. The Fund cannot assure you that it will achieve its investment objectives or that the Fund’s investment program will be successful, and you could lose all of your investment in the Fund. Portfolio Management Strategies
Dynamic Allocation Strategy.
(“PIMCO” or the “Investment Manager”), employs an active approach to allocation among multiple fixed income sectors based on, among other things, market conditions, valuation assessments, economic outlook, credit market trends and other economic factors. With PIMCO’s macroeconomic analysis as the basis for
top-down
investment decisions, including geographic and credit sector emphasis, PIMCO manages the Fund with a focus on seeking income-generating investment ideas across multiple fixed income sectors, with an emphasis on seeking opportunities in developed and emerging global credit markets. PIMCO may choose to focus on particular countries/regions (e.g., U.S. vs. foreign), asset classes, industries and sectors to the exclusion of others at any time and from time to time based on market conditions and other factors. The relative value assessment within fixed-income sectors draws on PIMCO’s regional and sector specialist insights. The Fund will observe various investment guidelines as summarized below. Investment Selection Strategies.
top-down,
portfolio positioning decisions have been made as described above, PIMCO selects particular investments for the Fund by employing a bottom-up,
disciplined credit approach which is driven by fundamental, independent research within each sector/asset class represented in the Fund, with a focus on identifying securities and other instruments with solid and/or improving fundamentals. PIMCO utilizes strategies that focus on credit quality analysis, duration management and other risk management techniques. PIMCO attempts to identify, through fundamental research driven by independent credit analysis and proprietary analytical tools, debt obligations and other income-producing securities that provide current income and/or opportunities for capital appreciation based on its analysis of the issuer’s credit characteristics and the position of the security in the issuer’s capital structure.
Consideration of yield is only one component of the portfolio managers’ approach in managing the Fund. PIMCO attempts to identify investments that may appreciate in value based on PIMCO’s assessment of the issuer’s credit characteristics, forecast for interest rates and outlook for particular countries/regions, currencies, industries, sectors and the global economy and bond markets generally.
Credit Quality.
BBB-
by either S&P Global Ratings (“S&P”) or Fitch Ratings, Inc. (“Fitch”)), or that are unrated but determined by PIMCO to be of comparable quality. The Fund will not normally invest more than 20% of its total assets in debt instruments, other than mortgage-related and other asset-backed 160 |
PIMCO CLOSED-END FUNDS |
| (Unaudited) |
securities, that are, at the time of purchase, rated CCC+ or lower by S&P and Fitch and Caa1 or lower by Moody’s, or that are unrated but determined by PIMCO to be of comparable quality to securities so rated. The Fund may invest without limit in mortgage-related and other asset-backed securities regardless of rating (i.e., of any credit quality). Subject to this 20% restriction, the Fund may invest any portion of its assets (or none) in issuers of any credit quality (including bonds in the lowest ratings categories) if PIMCO determines that the particular obligation is undervalued and/or offers an attractive yield relative to its risk profile. For purposes of applying the foregoing policies, in the case of securities with split ratings (i.e., a security receiving two different ratings from two different rating agencies), the Fund will apply the higher of the applicable ratings. Subject to the aforementioned investment guidelines, the Fund may invest in securities of stressed, distressed and/or defaulted issuers, which include securities in default or at risk of being in default as to the repayment of principal and/or interest at the time of acquisition by the Fund or that are rated in the lower rating categories by one or more nationally recognized statistical rating organizations (“NRSROs”) (for example, Ca or lower by Moody’s or CC or lower by S&P or Fitch) or, if unrated, are determined by PIMCO to be of comparable quality to securities so rated. Debt instruments of below investment grade quality are regarded as having predominantly speculative characteristics with respect to capacity to pay interest and to repay principal, and are commonly referred to as “high yield” securities or “junk bonds.” Debt instruments in the lowest investment grade category also may be considered to possess some speculative characteristics. The Fund may, for hedging, investment or leveraging purposes, make use of credit default swaps (which includes buying and/or selling credit default swaps), which are contracts whereby one party makes periodic payments to a counterparty in exchange for the right to receive from the counterparty a payment equal to the par (or other agreed-upon) value of a referenced debt obligation in the event of a default or other credit event by the issuer of the debt obligation.
Independent Credit Analysis.
Duration Management.
may be shorter or longer at any time depending on market conditions and other factors. While the Fund seeks to maintain a short to intermediate average portfolio duration, there is no limit on the maturity or duration of any individual security in which the Fund may invest. Duration is a measure used to determine the sensitivity of a security’s price to changes in interest rates. For example, if the Fund has an average portfolio duration of eight years, a 1% increase in interest rates would tend to correspond to an 8% decrease in the value of the Fund’s debt portfolio. The Fund’s duration strategy may entail maintaining a negative average portfolio duration from time to time, meaning the portfolio would tend to increase in value in response to an increase in interest rates. For example, if the Fund has a negative average portfolio duration, a 1% increase in interest rates would tend to correspond to a 1% increase in the value of the Fund’s portfolio for every year of negative duration. A negative average portfolio duration would potentially benefit the portfolio in an environment of rising market interest rates, but would generally adversely impact the portfolio in an environment of falling or neutral market interest rates. The Fund may use various derivatives strategies to manage (increase or decrease) the dollar-weighted average effective duration of the Fund’s portfolio.
PIMCO may also utilize certain strategies, including without limit investments in structured notes or interest rate futures contracts or swap, cap, floor or collar transactions, for the purpose of reducing the interest rate sensitivity of the Fund’s portfolio, although there is no assurance that it will do so or that such strategies will be successful. The foregoing is a description of interest rate duration management only. The credit spread duration of the Fund’s portfolio may vary, in some cases significantly, from its interest rate duration.
Portfolio Contents
Under normal market conditions, the Fund seeks to achieve its investment objectives by investing in, among other things, a combination of corporate debt obligations of varying maturities, other corporate income-producing securities, and income-producing securities of securities,
non-corporate
issuers, such as U.S. Government Securities, municipal securities and mortgage-backed and other asset-backed securities issued on a public or private basis. Corporate-income producing securities may include fixed-, variable- and floating-rate bonds, debentures, notes and other similar types of corporate debt instruments, such as preferred shares, convertible securities, loans (including, but not limited to, bank and/or other syndicated loans and non-syndicated
(private direct) loans) and loan participations and assignments, payment-in-kind
step-ups,
zero-coupon
bonds, bank certificates of deposit, fixed time deposits and bankers’ acceptances, stressed debt securities, structured notes and other hybrid instruments. Certain corporate income-producing securities, ANNUAL REPORT |
| | JUNE 30, 2026 | 161 |
The Funds’ Investment Objectives and Strategies |
(Cont.) |
such as convertible bonds, also may include the right to participate in equity appreciation, and PIMCO will generally evaluate those instruments based primarily on their debt characteristics. The Fund normally invests at least 50% of its total assets in corporate debt obligations and other corporate securities, including fixed-, variable- and floating-rate bonds, debentures, notes and other similar types of corporate debt instruments, such as preferred shares, convertible securities, bank loans and loan participations and assignments, securities (including partial loans and bonds),
payment-in-kind
payment-in-kind
step-ups,
zero-coupon
bonds, bank capital securities, bank certificates of deposit, fixed time deposits and bankers’ acceptances, stressed debt securities, structured notes and other hybrid instruments, common stocks and other equity securities. The Fund may invest in mortgage-related securities, including mortgage pass-through securities (e.g., securities representing interests in “pools” of mortgage loans secured by residential or commercial real property), collateralized mortgage obligations (“CMOs”), commercial or residential mortgage-backed securities, mortgage dollar rolls/buybacks, CMO residuals, adjustable rate mortgage-backed securities, stripped mortgage-backed securities (e.g., a type of mortgage-backed security that receives differing proportions of the interest and principal payments from the underlying assets), and other securities that directly or indirectly represent a participation in, or are secured by and payable from, mortgage loans on real property, debt instruments, including, without limit, bonds, debentures, notes, and other debt securities of U.S. and foreign (non-U.S.)
corporate and other issuers, including commercial paper; obligations of foreign governments or their sub-divisions,
agencies and government sponsored enterprises and obligations of international agencies and supranational entities; municipal securities and other debt securities issued by states or local governments and their agencies, authorities and other government-sponsored enterprises, including taxable municipal securities; inflation-indexed bonds issued by both governments and corporations; structured notes, including hybrid or indexed securities; insurance-linked instruments, catastrophe bonds and other event-linked bonds; credit-linked notes; credit-linked trust certificates; structured credit products; loans (including, among others, and without limit as to a loan’s level of seniority within a capital structure, senior loans, subordinated loans, mezzanine loans, delayed draw and delayed funding loans, covenant-lite obligations, credit facilities and loan participations and assignments); preferred securities and convertible debt securities (i.e., debt securities that may be converted at either a stated price or stated rate into underlying shares of common stock), including synthetic convertible debt securities (i.e., instruments created through a combination of separate securities that possess the two principal characteristics of a traditional convertible security, such as an income-producing security and the right to acquire an equity security) and contingent convertible securities. The Fund may invest in debt securities of stressed, distressed and/or defaulted issuers in financings. For tax or other structuring reasons, the Fund may purchase loan or debt investment structured as an equity interest (e.g., a joint venture interest). Subject to the investment limitations described above, at any given time and from time to time, substantially all of the Fund’s portfolio may consist of below investment grade securities. The Fund may invest in various levels of the capital structure of an issuer of mortgage-backed or asset-backed securities (including collateralized bond obligations, collateralized loan obligations (“CLOs”) and other collateralized debt obligations), including the equity or “first loss” tranche. The Fund may invest in unsecured loans and subordinated or mezzanine obligations, including second and lower lien loans and the mezzanine and equity (or “first loss”) tranches of CLO issues. For the avoidance of doubt, equity or “first loss” tranches of mortgage-backed or asset-backed securities do not constitute equity interests for purposes of the Fund’s 20% limit on investments in equity interests described below. The Fund may also invest, as a third party purchaser, in risk retention tranches of CMBS or other eligible securitizations, which are eligible residual interests typically held by the sponsors of such securitizations pursuant to the final rules implementing the credit risk retention requirements of Section 941 of the Dodd-Frank Act. The rate of interest on an income-producing security may be fixed, floating or variable, and may move in the opposite direction to interest rates generally or the interest rate on another security or index (i.e., inverse floaters).
debtor-in-possession
The Fund may invest without limit in
non-U.S.
dollar denominated securities (of both developed and emerging market countries), including obligations of non-U.S.
governments and their respective sub-divisions,
agencies and government-sponsored enterprises. The Fund may invest up to 40% of its total assets in securities and instruments that are economically tied to emerging market countries, except the Fund may invest without limit in investment grade sovereign debt that is issued by emerging market issuers that is denominated in the relevant country’s local currency with less than 1 year remaining to maturity. The Fund may also invest directly in foreign currencies, including local emerging market currencies. The Fund may, but is not required to, utilize various derivative strategies (both long and short positions) involving the purchase or sale of futures and forward contracts (including foreign currency exchange contracts), call and put options, credit default swaps, total return swaps, basis swaps and other swap agreements and other derivative instruments for investment purposes, leveraging purposes or in an attempt to hedge against market, credit, interest rate, currency and other risks in the portfolio. The Fund may purchase and sell securities on a when-issued, delayed delivery or forward commitment basis and may engage in short sales. The Fund may use derivative instruments for other purposes, including to seek to increase liquidity,
162 |
PIMCO CLOSED-END FUNDS |
| (Unaudited) |
provide efficient portfolio management, broaden investment opportunities (including taking short or negative positions), implement a tax or cash management strategy, gain exposure to a particular security or segment of the market, modify the effective duration of the Fund’s portfolio investments and/or enhance total return.
The Fund may invest up to 20% of its total assets in common stocks and other equity securities from time to time, including those it has received through the conversion of a convertible security held by the Fund or in connection with the restructuring of a debt security. Common stocks include common shares and other common equity interest issued by public or private issuers.
The Fund may invest in and/or originate loans, including, without limit, residential and/or commercial real estate or mortgage-related loans, consumer loans or other types of loans, which may be in the form of, and without limit as to a loan’s level of seniority within a capital structure, whole loans, assignments, participations, secured and unsecured notes, senior and second lien loans, mezzanine loans, bridge loans or similar investments, including to borrowers that are unrated or have credit ratings that are determined by one or more NRSROs and/or PIMCO to be below investment grade. The Fund may invest in and/or originate loans to corporations and/or other legal entities and individuals,
including foreign (non-U.S.) entities
and individuals. The loans the Fund invests in and/or originates may vary in maturity and/or duration. The Fund is not limited in the amount, size or type of loans it may invest in and/or originate, including with respect to a single borrower or with respect to borrowers that are determined to be below investment grade, other than pursuant to any applicable law. The Fund’s investments in and/or origination of loans may also be limited by the Fund’s intention to continue to qualify as a regulated investment company (“RIC”). When acquiring and/or originating loans, the Fund is not restricted by any particular borrower credit criteria. Accordingly, certain loans acquired or originated by the Fund may be subprime in quality, or may become subprime in quality. The Fund may invest in securities that have not been registered for public sale in the U.S. or relevant
non-U.S.
jurisdictions, including without limit securities eligible for purchase and sale pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), or relevant provisions of applicable non-U.S.
law, and other securities issued in private placements. The Fund may invest in securities of other open- or closed-end
investment companies (including those advised by PIMCO), including, without limit, exchange-traded funds (“ETFs”), to the extent that such investments are consistent with the Fund’s investment objectives, strategies and policies and permissible under the 1940 Act. The Fund may invest in other investment companies to gain broad market or sector exposure or for cash management purposes, including during periods when it has large amounts of uninvested cash or when PIMCO believes share prices of other investment companies offer attractive values. The Fund may invest in certain money market funds and/or short-term bond funds (“Central Funds”), to the extent permitted by the 1940 Act, the rules thereunder or exemptive relief therefrom. The Central Funds are registered investment companies created for use by certain registered investment companies advised by PIMCO in connection with their cash management activities. The Fund treats its investments in other investment companies that invest primarily in types of securities in which the Fund may invest directly as investments in such types of securities for purposes of the Fund’s investment policies (e.g., the Fund’s investment in an investment company that invests primarily in debt securities will be treated by the Fund as an investment in a debt security). As a shareholder in an investment company, the Fund would bear its ratable share of that investment company’s expenses and would remain subject to payment of the Fund’s management fees and other expenses with respect to assets so invested. The holders of the Common Shares (the “Common Shareholders”) would therefore be subject to duplicative expenses to the extent the Fund invests in other investment companies. The securities of other investment companies may be leveraged, in which case the NAV and/or market value of the investment company’s shares will be more volatile than unleveraged investments.
The Fund may invest in real estate investment trusts. The Fund may invest in securities of companies with any market capitalization, including small and medium capitalizations.
The Fund may enter into repurchase agreements, in which the Fund purchases a security from a bank or broker-dealer and the bank or broker-dealer agrees to repurchase the security at the Fund’s cost plus interest within a specified time.
The Fund may lend its portfolio securities to brokers, dealers or other financial institutions provided a number of conditions are satisfied, including that the loan is fully collateralized.
The Fund may invest without limit in illiquid investments (i.e., investments that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment).
A change in the securities held by the Fund is known as “portfolio turnover.” The Fund may engage in frequent and active trading of portfolio securities to achieve its investment objectives, particularly during periods of volatile market movements. Frequent and active trading of the Fund’s portfolio holdings may cause adverse tax
ANNUAL REPORT |
| | JUNE 30, 2026 | 163 |
The Funds’ Investment Objectives and Strategies |
(Cont.) |
consequences for shareholders due to an increase in short-term capital gains and may also adversely impact the Fund’s
after-tax
returns. There have been no significant changes in the Fund’s portfolio turnover rates over the last two fiscal years, and no significant change to the portfolio turnover rates of the Fund described in the Financial Highlights can currently be predicted.
The Fund has received exemptive relief from the SEC that, to the extent the Fund relies on such relief, permits it to (among other things)
co-invest
with certain other persons, including certain affiliates of the Investment Manager and certain public or private funds managed by the Investment Manager and its affiliates, subject to certain terms and conditions. The exemptive relief from the SEC with respect to co-investments
imposes extensive conditions on any co-investments
made in reliance on such relief. Temporary defensive investments.
non-corporate
issuers, including high quality, short-term debt securities. The Fund may not achieve its investment objectives when it does so. Use of Leverage
The Fund currently utilizes leverage principally through reverse repurchase agreements, and may also obtain additional leverage through dollar rolls/buybacks or borrowings, such as through bank loans or commercial paper and/or credit facilities. The Fund may also enter into transactions other than those noted above that may give rise to a form of leverage including, among others, futures and forward contracts (including foreign currency exchange contracts), total return swaps and other derivative transactions, loans of portfolio securities, short sales, when-issued, delayed delivery and forward commitment transactions and selling credit default swaps. Leveraging transactions pursued by the Fund may increase its duration and sensitivity to interest rate movements. The Fund may also determine to issue preferred shares or other types of senior securities to add leverage to its portfolio. By using leverage, the Fund will seek to obtain a higher return for holders of Common Shares than if the Fund did not use leverage. The Fund’s Board may authorize the issuance of preferred shares without the approval of Common Shareholders. If the Fund issues preferred shares in the future, all costs and expenses relating to the issuance and ongoing maintenance of the preferred shares will be borne by the Common Shareholders, and these costs and expenses may be significant. Leveraging is a speculative technique
and there are special risks and costs involved. There can be no assurance that a leveraging strategy will be used or that it will be successful during any period in which it is employed.
The Fund utilizes certain kinds of leverage, such as reverse repurchase agreements and selling credit default swaps, opportunistically and may choose to increase or decrease, or eliminate entirely, its use of such leverage over time and from time to time based on PIMCO’s assessment of the yield curve environment, interest rate trends, market conditions and other factors.
The Fund also may borrow money for temporary purposes, to add leverage to the portfolio or for the settlement of securities transactions which otherwise might require untimely dispositions of portfolio securities held by the Fund.
PIMCO Income Strategy Fund (“PFL”)
Investment Objectives and Policies
The Fund’s investment objective is to seek high current income, consistent with the preservation
of
capital. The Fund seeks to achieve its investment objective by ordinarily investing in a diversified portfolio of floating- and/or fixed-rate debt instruments. The Fund may invest a substantial portion of its floating-rate assets in floating-rate loans. Other floating-rate debt instruments in which the Fund may invest include catastrophe and other event-linked bonds, bank capital securities, unsecured and/or secured loans (including, but not limited to, bank and/or other syndicated loans and
non-syndicated
(private direct) loans), corporate bonds and other debt securities, money market instruments and certain types of mortgage-backed and other asset-backed securities that pay interest at rates that adjust whenever a specified interest rate changes and/or reset on predetermined dates (such as the last day of a month or calendar quarter). The Fund cannot assure you that it will achieve its investment objective or that the Fund’s investment program will be successful, and you could lose all of your investment in the Fund. Portfolio Management Strategies
Dynamic Allocation Strategy.
top-down
investment decisions, including geographic and credit sector emphasis, PIMCO manages the Fund with a focus on seeking income-generating investment ideas across multiple fixed income sectors, with an emphasis on seeking opportunities in developed and emerging global credit markets. The Fund has the 164 |
PIMCO CLOSED-END FUNDS |
| (Unaudited) |
flexibility to allocate assets in varying proportions among floating- and fixed-rate debt instruments, as well as among investment-grade and
non-investment
grade securities. It may focus more heavily or exclusively on an asset class at any time, based on assessments of relative values, market conditions and other factors. PIMCO may choose to focus on particular countries/regions (e.g., U.S. vs. foreign), asset classes, industries and sectors to the exclusion of others at any time and from time to time based on market conditions and other factors. The relative value assessment within fixed-income sectors draws on PIMCO’s regional and sector specialist insights. The Fund will observe various investment guidelines as summarized below. Investment Selection Strategies.
top-down,
portfolio positioning decisions have been made as described above, PIMCO selects particular investments for the Fund by employing a bottom-up,
disciplined credit approach which is driven by fundamental, independent research within each sector/asset class represented in the Fund, with a focus on identifying securities and other instruments with solid and/or improving fundamentals. PIMCO utilizes strategies that focus on credit quality analysis, duration management and other risk management techniques. PIMCO attempts to identify, through fundamental research driven by independent credit analysis and proprietary analytical tools, debt obligations and other income-producing securities that provide current income and/or opportunities for capital appreciation based on its analysis of the issuer’s credit characteristics and the position of the security in the issuer’s capital structure.
Consideration of yield is only one component of the portfolio managers’ approach in managing the Fund. PIMCO also attempts to identify investments that may appreciate in value based on PIMCO’s assessment of the issuer’s credit characteristics, forecast for interest rates and outlook for particular countries/regions, currencies, industries, sectors and the global economy and bond markets generally.
Credit Quality.
BBB-
by either S&P Global Ratings (“S&P”) or Fitch Ratings, Inc. (“Fitch”)) or that are unrated but judged by PIMCO to be of comparable quality. The Fund will not normally invest more than 20% of its total assets in debt instruments, other than mortgage-related and other asset-backed securities, that are, at the time of purchase, rated CCC+ or lower by S&P and Fitch and Caa1 or lower by Moody’s, or that are unrated but determined by PIMCO to be of comparable quality to securities so rated. The Fund may invest without limit in mortgage-related
and other asset-backed securities regardless of rating (i.e., of any credit quality). Subject to this 20% restriction, the Fund may invest in issuers of any credit quality (including bonds in the lowest ratings categories and securities that are in default or the issuers of which are in bankruptcy). For purposes of applying the foregoing policies, in the case of securities with split ratings (i.e., a security receiving two different ratings from two different rating agencies), the Fund will apply the higher of the applicable ratings. Subject to the aforementioned investment guidelines, the Fund may invest in securities of stressed, distressed and/or defaulted issuers, which include securities in default or at risk of being in default as to the repayment of principal and/or interest at the time of acquisition by the Fund or that are rated in the lower rating categories by one or more nationally recognized statistical rating organizations (“NRSROs”) (for example, Ca or lower by Moody’s or CC or lower by S&P or Fitch) or, if unrated, are determined by PIMCO to be of comparable quality to securities so rated. Debt instruments of below investment grade quality are regarded as having predominantly speculative characteristics with respect to capacity to pay interest and to repay principal, and are commonly referred to as “high yield” securities or “junk bonds.” Debt instruments in the lowest investment grade category also may be considered to possess some speculative characteristics. The Fund may, for hedging, investment or leveraging purposes, make use of credit default swaps (which includes buying and/or selling credit default swaps), which are contracts whereby one party makes periodic payments to a counterparty in exchange for the right to receive from the counterparty a payment equal to the par (or other agreed-upon) value of a referenced debt obligation in the event of a default or other credit event by the issuer of the debt obligation.
Independent Credit Analysis.
Duration Management.
ANNUAL REPORT |
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The Funds’ Investment Objectives and Strategies |
(Cont.) |
has an average portfolio duration of eight years, a 1% increase in interest rates would tend to correspond to an 8% decrease in the value of the Fund’s debt portfolio. The Fund’s duration strategy may entail maintaining a negative average portfolio duration from time to time, meaning the portfolio would tend to increase in value in response to an increase in interest rates. For example, if the Fund has a negative average portfolio duration, a 1% increase in interest rates would tend to correspond to a 1% increase in the value of the Fund’s debt portfolio for every year of negative duration. A negative average portfolio duration would potentially benefit the portfolio in an environment of rising market interest rates, but would generally adversely impact the portfolio in an environment of falling or neutral market interest rates. The Fund may use various derivatives strategies to manage (increase or decrease) the dollar-weighted average effective duration of the Fund’s portfolio.
PIMCO may also utilize certain strategies, including without limit investments in structured notes or interest rate futures contracts or swap, cap, floor or collar transactions, for the purpose of reducing the interest rate sensitivity of the Fund’s portfolio, although there is no assurance that it will do so or that such strategies will be successful. The foregoing is a description of interest rate duration management only. The credit spread duration of the Fund’s portfolio may vary, in some cases significantly, from its interest rate duration.
Portfolio Contents
The Fund seeks to achieve its investment objective by ordinarily investing in a diversified portfolio of floating- and/or fixed-rate debt instruments. The Fund may invest a substantial portion of its floating-rate assets in floating-rate loans. Other floating-rate debt instruments in which the Fund may invest include insurance-linked instruments, catastrophe bonds and other event-linked bonds, bank capital securities, unsecured and/or secured loans (including, but not limited to, bank and/or other syndicated loans and
non-syndicated
(private direct) loans), corporate bonds and other debt securities, money market instruments and certain types of mortgage-backed and other asset-backed securities that pay interest at rates that adjust whenever a specified interest rate changes and/or reset on predetermined dates (such as the last day of a month or calendar quarter). The Fund also considers floating-rate assets to include securities with durations of less than or equal to one year and fixed-rate securities with respect to which the Fund has entered into derivative instruments to effectively convert the fixed-rate interest payments into floating-rate interest payments. The Fund also may invest in a wide variety of fixed-rate debt securities, including corporate bonds and mortgage-backed and other asset-backed securities issued on a public or private basis, including mortgage pass-through securi
ties (e.g., securities representing interests in “pools” of mortgage loans secured by residential or commercial real property), collateralized mortgage obligations (“CMOs”), commercial or residential mortgage-backed securities, mortgage dollar rolls/buybacks, CMO residuals, adjustable rate mortgage-backed securities, stripped mortgage-backed securities (e.g., a type of mortgage-backed security that receives differing proportions of the interest and principal payments from the underlying assets) and other securities that directly or indirectly represent a participation in, or are secured by and payable from, mortgage loans on real property. The Fund may make use of a variety of other instruments, including collateralized bond obligations, collateralized loan obligations (“CLOs”), collateralized debt obligations, preferred securities, commercial paper, financings. For tax or other structuring reasons, the Fund may purchase loan or debt investment structured as an equity interest (e.g., a joint venture interest).
zero-coupon
and inflation-indexed bonds, bank certificates of deposit, fixed time deposits and bankers’ acceptances, real estate investment trusts (“REITs”), bonds, debentures, notes, and other debt securities of U.S. and foreign (non-U.S.)
corporate and other issuers; obligations of foreign governments or their sub-divisions, agencies and government sponsored enterprises and obligations of international agencies and supranational entities; municipal securities and other debt securities issued by states or local governments and their agencies, authorities and other government-sponsored enterprises, including taxable municipal securities (such as Build America Bonds); inflation-indexed bonds issued by both governments and corporations; structured notes, including hybrid or indexed securities; credit-linked notes; credit-linked trust certificates, structured credit products; loans (including, among others, and without limit as to a loan’s level of seniority within a capital structure, senior loans, subordinated loans, mezzanine loans, delayed draw and delayed funding loans, covenant-lite obligations, revolving credit facilities and loan participations and assignments); preferred securities and convertible debt securities (i.e., debt securities that may be converted at either a stated price or stated rate into underlying shares of common stock), including synthetic convertible debt securities (i.e., instruments created through a combination of separate securities that possess the two principal characteristics of a traditional convertible security, such as an income-producing security and the right to acquire an equity security) and contingent convertible securities. Certain debt instruments, such as convertible bonds, also may include the right to participate in equity appreciation. The principal and/or interest rate on some debt instruments may be determined by reference to the performance of a benchmark asset or market, such as an index of securities, or the differential performance of two assets or markets, such as the level of exchange rates between the U.S. dollar and a foreign currency or currencies. The Fund may invest in debt securities of stressed, distressed and/or defaulted issuers in debtor-in-possession
166 |
PIMCO CLOSED-END FUNDS |
| (Unaudited) |
Subject to the Fund’s investment limitations, at any given time and from time to time, substantially all of the Fund’s portfolio may consist of below investment grade securities. The Fund may invest in various levels of the capital structure of an issuer of mortgage-backed or asset-backed securities (including collateralized bond obligations, collateralized loan obligations (“CLOs”) and other collateralized debt obligations), including the equity or “first loss” tranche. The Fund may invest in unsecured loans and subordinated or mezzanine obligations, including second and lower lien loans and the mezzanine and equity (or “first loss”) tranches of CLO issues. For the avoidance of doubt, equity or “first loss” tranches of mortgage-backed or asset-backed securities do not constitute equity interests for purposes of the Fund’s 20% limit on investments in equity interests described below. The Fund may also invest, as a third party purchaser, in risk retention tranches of CMBS or other eligible securitizations, which are eligible residual interests typically held by the sponsors of such securitizations pursuant to the final rules implementing the credit risk retention requirements of Section 941 of the Dodd-Frank Act. The rate of interest on an income-producing security may be fixed, floating or variable, and may move in the opposite direction to interest rates generally or the interest rate on another security or index (i.e., inverse floaters).
The Fund invests predominantly in U.S. dollar-denominated debt securities, which may include those issued by foreign corporations or supra-national government agencies. The Fund may invest without limit in
non-U.S.
dollar denominated securities (of both developed and emerging market countries), including obligations of non-U.S.
governments and their respective sub-divisions,
agencies and government-sponsored enterprises. The Fund may invest up to 40% of its total assets in securities and instruments that are economically tied to emerging market countries, except the Fund may invest without limit in investment grade sovereign debt that is issued by emerging market issuers that is denominated in the relevant country’s local currency with less than 1 year remaining to maturity. The Fund may also invest directly in foreign currencies, including local emerging market currencies. The Fund normally invests at least 50% of its total assets in corporate debt obligations and other corporate securities, including fixed-, variable- and floating-rate bonds, debentures, notes and other similar types of corporate debt instruments, such as preferred shares, convertible securities, bank loans and loan participations and (including partial loans and bank capital securities, bank certificates of deposit, fixed time deposits and bankers’ acceptances, stressed debt securities, structured notes and other hybrid instruments, common stocks and other equity securities. The Fund may invest up to 20% of its total assets in common stocks
assignments, payment-in-kind securities
payment-in-kind
bonds), step-ups, zero-coupon bonds,
and other equity securities from time to time, including those it has received through the conversion of a convertible security held by the Fund or in connection with the restructuring of a debt security. Common stocks include common shares and other common equity interest issued by public or private issuers.
The Fund may, but is not required to, utilize various derivative strategies (both long and short positions) involving the purchase or sale of futures and forward contracts (including foreign currency exchange contracts), call and put options, credit default swaps, total return swaps, basis swaps and other swap agreements and other derivative instruments for investment purposes, leveraging purposes or in an attempt to hedge against market, credit, interest rate, currency and other risks in the portfolio. The Fund may purchase and sell securities on a when-issued, delayed delivery or forward commitment basis and may engage in short sales. The Fund may also seek to obtain market exposure to the securities in which it invests by entering into a series of purchase and sale contracts. The Fund may use derivative instruments for other purposes, including to seek to increase liquidity, provide efficient portfolio management, broaden investment opportunities (including taking short or negative positions), implement a tax or cash management strategy, gain exposure to a particular security or segment of the market, modify the effective duration of the Fund’s portfolio investments and/or enhance total return.
The Fund has a policy not to concentrate investments in any particular industry, but may (consistent with that policy) invest up to 25% of its assets in any particular industry, and may invest a substantial portion of its assets in companies in related sectors, such as those in the banking or financial services sectors, which may share common characteristics and are often subject to similar business risks and regulatory burdens.
The Fund may invest in and/or originate loans, including, without limit, residential and/or commercial real estate or mortgage-related loans, consumer loans or other types of loans, which may be in the form of, and without limit as to a loan’s level of seniority within a capital structure, whole loans, assignments, participations, secured and unsecured notes, senior and second lien loans, mezzanine loans, bridge loans or similar investments, including to borrowers that are unrated or have credit ratings that are determined by one or more NRSROs and/or PIMCO to be below investment grade. The Fund may invest in and/or originate loans to corporations and/or other legal entities and individuals, including
foreign (non-U.S.) entities
and individuals. The loans the Fund invests in and/or originates may vary in maturity and/or duration. The Fund is not limited in the amount, size or type of loans it may invest in and/or originate, including with respect to a single borrower or with respect to borrowers that are determined to be below investment grade, other than pursuant to any ANNUAL REPORT |
| | JUNE 30, 2026 | 167 |
The Funds’ Investment Objectives and Strategies |
(Cont.) |
applicable law. The Fund’s investments in and/or origination of loans may also be limited by the Fund’s intention to continue to qualify as a regulated investment company (“RIC”). When acquiring and/or originating loans, the Fund is not restricted by any particular borrower credit criteria. Accordingly, certain loans acquired or originated by the Fund may be subprime in quality, or may become subprime in quality.
The Fund may invest in securities that have not been registered for public sale in the U.S. or relevant
non-U.S.
jurisdictions, including without limit securities eligible for purchase and sale pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), or relevant provisions of applicable non-U.S.
law, and other securities issued in private placements. The Fund may invest in securities of other open- or closed-end
investment companies (including those advised by PIMCO), including, without limit, exchange-traded funds (“ETFs”), to the extent that such investments are consistent with the Fund’s investment objectives, strategies and policies and permissible under the 1940 Act. The Fund may invest in other investment companies to gain broad market or sector exposure or for cash management purposes, including during periods when it has large amounts of uninvested cash or when PIMCO believes share prices of other investment companies offer attractive values. The Fund may invest in certain money market funds and/or short-term bond funds (“Central Funds”), to the extent permitted by the 1940 Act, the rules thereunder or exemptive relief therefrom. The Central Funds are registered investment companies created for use by certain registered investment companies advised by PIMCO in connection with their cash management activities. The Fund treats its investments in other investment companies that invest primarily in types of securities in which the Fund may invest directly as investments in such types of securities for purposes of the Fund’s investment policies (e.g., the Fund’s investment in an investment company that invests primarily in debt securities will be treated by the Fund as an investment in a debt security). As a shareholder in an investment company, the Fund would bear its ratable share of that investment company’s expenses and would remain subject to payment of the Fund’s management fees and other expenses with respect to assets so invested. The holders of the Common Shares (the “Common Shareholders”) would therefore be subject to duplicative expenses to the extent the Fund invests in other investment companies. The securities of other investment companies may be leveraged, in which case the NAV and/or market value of the investment company’s shares will be more volatile than unleveraged investments. The Fund may invest in REITs. The Fund may invest in securities of companies of any market capitalization, including small, medium and large capitalizations. The Fund may invest without limit in illiquid investments (i.e., investments that the Fund reasonably expects cannot be sold or
disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment).
The Fund may enter into repurchase agreements, in which the Fund purchases a security from a bank or broker-dealer and the bank or broker-dealer agrees to repurchase the security at the Fund’s cost plus interest within a specified time.
The Fund may lend its portfolio securities to brokers, dealers or other financial institutions provided a number of conditions are satisfied, including that the loan is fully collateralized.
A change in the securities held by the Fund is known as “portfolio turnover.” The Fund may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. Frequent and active trading of the Fund’s portfolio holdings may cause adverse tax consequences for shareholders due to an increase in short-term capital gains and may also adversely impact the Fund’s
after-tax
returns. There have been no significant changes in the Fund’s portfolio turnover rates over the last two fiscal years, and no significant change to the portfolio turnover rates of the Fund described in the Financial Highlights can currently be predicted.
The Fund has received exemptive relief from the SEC that, to the extent the Fund relies on such relief, permits it to (among other things)
co-invest
with certain other persons, including certain affiliates of the Investment Manager and certain public or private funds managed by the Investment Manager and its affiliates, subject to certain terms and conditions. The exemptive relief from the SEC with respect to co-investments
imposes extensive conditions on any co-investments
made in reliance on such relief. Temporary defensive investments.
Use of Leverage
The Fund currently utilizes leverage principally through its reverse repurchase agreements and may also obtain additional leverage through dollar rolls/buybacks or borrowings, such as through bank
168 |
PIMCO CLOSED-END FUNDS |
| (Unaudited) |
loans or commercial paper, and/or other credit facilities. The Fund may also determine to issue preferred shares or other types of senior securities to add leverage to its portfolio. By using leverage, the Fund will seek to obtain a higher return for holders of Common Shares than if the Fund did not use leverage. The Fund’s Board may authorize the issuance of preferred shares without the approval of Common Shareholders. If the Fund issues preferred shares in the future, all costs and expenses relating to the issuance and ongoing maintenance of the preferred shares will be borne by the Common Shareholders, and these costs and expenses may be significant. Leveraging transactions pursued by the Fund may increase its duration and sensitivity to interest rate movements. Leveraging is a speculative technique and there are special risks and costs involved. There can be no assurance that a leveraging strategy will be used or that it will be successful during any period in which it is employed.
The Fund may also enter into transactions other than those noted above that may give rise to a form of leverage including, among others, futures and forward contracts (including foreign currency exchange contracts), total return swaps and other derivative transactions, loans of portfolio securities, short sales, when-issued, delayed delivery and forward commitment transactions and selling credit default swaps.
The Fund utilizes certain kinds of leverage, such as reverse repurchase agreements and selling credit default swaps, opportunistically and may choose to increase or decrease, or eliminate entirely, its use of such leverage over time and from time to time based on PIMCO’s assessment of the yield curve environment, interest rate trends, market conditions and other factors.
The Fund also may borrow money in order to repurchase its shares or for temporary purposes to add leverage to the portfolio or for the settlement of securities transactions which otherwise might require untimely dispositions of portfolio securities held by the Fund.
PIMCO Income Strategy Fund II (“PFN”)
Investment Objectives and Policies
The Fund’s investment objective is to seek high current income, consistent with the preservation of capital.
The Fund seeks to achieve its investment objective by ordinarily investing in a diversified portfolio of floating- and/or fixed-rate debt instruments. The Fund may invest a substantial portion of its floating-rate assets in floating-rate loans. Other floating-rate debt instruments in which the Fund may invest include catastrophe and other event-linked bonds, bank capital securities, unsecured and/or secured loans (including, but not limited to, bank and/or other syndicated loans and
non-syndicated
(private direct) loans), corporate bonds and other debt securities, money market instruments and certain types of mortgage-backed and other asset-backed securities that pay interest at rates that adjust whenever a specified interest rate changes and/or reset on predetermined dates (such as the last day of a month or calendar quarter). The Fund cannot assure you that it will achieve its investment objective or that the Fund’s investment program will be successful, and you could lose all of your investment in the Fund.
Portfolio Management Strategies
Dynamic Allocation Strategy.
top-down
investment decisions, including geographic and credit sector emphasis, PIMCO manages the Fund with a focus on seeking income-generating investment ideas across multiple fixed income sectors, with an emphasis on seeking opportunities in developed and emerging global credit markets. The Fund has the flexibility to allocate assets in varying proportions among floating- and fixed-rate debt instruments, as well as among investment-grade and non-investment
grade securities. It may focus more heavily or exclusively on an asset class at any time, based on assessments of relative values, market conditions and other factors. PIMCO may choose to focus on particular countries/regions (e.g., U.S. vs. foreign), asset classes, industries and sectors to the exclusion of others at any time and from time to time based on market conditions and other factors. The relative value assessment within fixed-income sectors draws on PIMCO’s regional and sector specialist insights. The Fund will observe various investment guidelines as summarized below. Investment Selection Strategies.
bottom-up,
disciplined credit approach which is driven by fundamental, independent research within each sector/asset class represented in the Fund, with a focus on identifying securities and other instruments with solid and/or improving fundamentals. PIMCO utilizes strategies that focus on credit quality analysis, duration management and other risk management techniques. PIMCO attempts to identify, through fundamental research driven by independent credit analysis and proprietary analytical tools, debt obligations and other income-producing securities that provide current income and/or opportunities for capital appreciation based on its analysis of the issuer’s credit characteristics and the position of the security in the issuer’s capital structure.
Consideration of yield is only one component of the portfolio managers’ approach in managing the Fund. PIMCO also attempts to
ANNUAL REPORT |
| | JUNE 30, 2026 | 169 |
The Funds’ Investment Objectives and Strategies |
(Cont.) |
identify investments that may appreciate in value based on PIMCO’s assessment of the issuer’s credit characteristics, forecast for interest rates and outlook for particular countries/regions, currencies, industries, sectors and the global economy and bond markets generally.
Credit Quality.
BBB-
by either S&P Global Ratings (“S&P”) or Fitch Ratings, Inc. (“Fitch”)) or that are unrated but judged by PIMCO to be of comparable quality. The Fund will not normally invest more than 20% of its total assets in debt instruments, other than mortgage-related and other asset-backed securities, that are, at the time of purchase, rated CCC+ or lower by S&P and Fitch and Caa1 or lower by Moody’s, or that are unrated but determined by PIMCO to be of comparable quality to securities so rated. The Fund may invest without limit in mortgage-related and other asset-backed securities regardless of rating (i.e., of any credit quality). Subject to this 20% restriction, the Fund may invest in issuers of any credit quality (including bonds in the lowest ratings categories and securities that are in default or the issuers of which are in bankruptcy). For purposes of applying the foregoing policies, in the case of securities with split ratings (i.e., a security receiving two different ratings from two different rating agencies), the Fund will apply the higher of the applicable ratings. Subject to the aforementioned investment guidelines, the Fund may invest in securities of stressed, distressed and/or defaulted issuers, which include securities in default or at risk of being in default as to the repayment of principal and/or interest at the time of acquisition by the Fund or that are rated in the lower rating categories by one or more nationally recognized statistical rating organizations (“NRSROs”) (for example, Ca or lower by Moody’s or CC or lower by S&P or Fitch) or, if unrated, are determined by PIMCO to be of comparable quality to securities so rated. Debt instruments of below investment grade quality are regarded as having predominantly speculative characteristics with respect to capacity to pay interest and to repay principal, and are commonly referred to as “high yield” securities or “junk bonds.” Debt instruments in the lowest investment grade category also may be considered to possess some speculative characteristics. The Fund may, for hedging, investment or leveraging purposes, make use of credit default swaps (which includes buying and/or selling credit default swaps), which are contracts whereby one party makes periodic payments to a counterparty in exchange for the right to receive from the counterparty a payment equal to the par (or other agreed-upon) value of a referenced debt obligation in the event of a default or other credit event by the issuer of the debt obligation. Independent Credit Analysis.
instruments considered for the Fund, rather than relying exclusively on rating agencies or third-party research. The Fund’s portfolio managers utilize this information in an attempt to manage credit risk and/or to identify issuers, industries or sectors that are undervalued and/or that offer attractive yields relative to PIMCO’s assessment of their credit characteristics. This aspect of PIMCO’s capabilities will be particularly important to the extent that the Fund invests in floating rate loans, high yield securities and in securities of emerging market issuers.
Duration Management.
PIMCO may also utilize certain strategies, including without limit investments in structured notes or interest rate futures contracts or swap, cap, floor or collar transactions, for the purpose of reducing the interest rate sensitivity of the Fund’s portfolio, although there is no assurance that it will do so or that such strategies will be successful. The foregoing is a description of interest rate duration management only. The credit spread duration of the Fund’s portfolio may vary, in some cases significantly, from its interest rate duration.
Portfolio Contents
The Fund seeks to achieve its investment objective by ordinarily investing in a diversified portfolio of floating- and/or fixed-rate debt instruments. The Fund may invest a substantial portion of its floating-rate assets in floating-rate loans. Other floating-rate debt instruments in which the Fund may invest include insurance-linked instruments,
170 |
PIMCO CLOSED-END FUNDS |
| (Unaudited) |
catastrophe bonds and other event-linked bonds, bank capital securities, unsecured and/or secured loans (including, but not limited to, bank and/or other syndicated loans and
non-syndicated
(private direct) loans), corporate bonds and other debt securities, money market instruments and certain types of mortgage-backed and other asset-backed securities that pay interest at rates that adjust whenever a specified interest rate changes and/or reset on predetermined dates (such as the last day of a month or calendar quarter). The Fund also considers floating-rate assets to include securities with durations of less than or equal to one year and fixed-rate securities with respect to which the Fund has entered into derivative instruments to effectively convert the fixed-rate interest payments into floating-rate interest payments. The Fund also may invest in a wide variety of fixed-rate debt securities, including corporate bonds and mortgage-backed and other asset-backed securities issued on a public or private basis, including mortgage pass-through securities (e.g., securities representing interests in “pools” of mortgage loans secured by residential or commercial real property), collateralized mortgage obligations (“CMOs”), commercial or residential mortgage-backed securities, mortgage dollar rolls/buybacks, CMO residuals, adjustable rate mortgage-backed securities, stripped mortgage-backed securities (e.g., a type of mortgage-backed security that receives differing proportions of the interest and principal payments from the underlying assets), and other securities that directly or indirectly represent a participation in, or are secured by and payable from, mortgage loans on real property. The Fund may make use of a variety of other instruments, including collateralized bond obligations, collateralized loan obligations (“CLOs”), collateralized debt obligations, preferred securities, commercial paper, zero-coupon
and inflation-indexed bonds, bank certificates of deposit, fixed time deposits and bankers’ acceptances, real estate investment trusts (“REITs”), bonds, debentures, notes, and other debt securities of U.S. and foreign (non-U.S.)
corporate and other issuers; obligations of foreign governments or their sub-divisions,
agencies and government sponsored enterprises and obligations of international agencies and supranational entities; municipal securities and other debt securities issued by states or local governments and their agencies, authorities and other government-sponsored enterprises, including taxable municipal securities (such as Build America Bonds); inflation-indexed bonds issued by both governments and corporations; structured notes, including hybrid or indexed securities; credit-linked notes; credit-linked trust certificates, structured credit products; loans (including, among others, and without limit as to a loan’s level of seniority within a capital structure, senior loans, subordinated loans, mezzanine loans, delayed draw and delayed funding loans, covenant-lite obligations, revolving credit facilities and loan participations and assignments); preferred securities and convertible debt securities (i.e., debt securities that may be converted at either a stated price or stated rate into underlying shares of common stock), including synthetic convertible debt securities (i.e., instruments created through a combination of separate securities that possess the two principal characteristics of a traditional convertible security, such as an income-producing security and the right to acquire an equity security) and contingent convertible securities. Certain debt instruments, such as convertible bonds, also may include the right to participate in equity appreciation. The principal and/or interest rate on some debt instruments may be determined by reference to the performance of a benchmark asset or market, such as an index of securities, or the differential performance of two assets or markets, such as the level of exchange rates between the U.S. dollar and a foreign currency or currencies. The Fund may invest in debt securities of stressed, distressed and/or defaulted issuers in financings.. For tax or other structuring reasons, the Fund may purchase loan or debt investment structured as an equity interest (e.g., a joint venture interest).
debtor-in-possession
Subject to the Fund’s investment limitations, at any given time and from time to time, substantially all of the Fund’s portfolio may consist of below investment grade securities. The Fund may invest in various levels of the capital structure of an issuer of mortgage-backed or asset-backed securities (including collateralized bond obligations, collateralized loan obligations (“CLOs”) and other collateralized debt obligations), including the equity or “first loss” tranche. The Fund may invest in unsecured loans and subordinated or mezzanine obligations, including second and lower lien loans and the mezzanine and equity (or “first loss”) tranches of CLO issues. For the avoidance of doubt, equity or “first loss” tranches of mortgage-backed or asset-backed securities do not constitute equity interests for purposes of the Fund’s 20% limit on investments in equity interests described below. The Fund may also invest, as a third party purchaser, in risk retention tranches of CMBS or other eligible securitizations, which are eligible residual interests typically held by the sponsors of such securitizations pursuant to the final rules implementing the credit risk retention requirements of Section 941 of the Dodd-Frank Act. The rate of interest on an income-producing security may be fixed, floating or variable, and may move in the opposite direction to interest rates generally or the interest rate on another security or index (i.e., inverse floaters).
The Fund invests predominantly in U.S. dollar-denominated debt securities, which may include those issued by foreign corporations or supra-national government agencies. The Fund may invest without limit in
non-U.S.
dollar denominated securities (of both developed and emerging market countries), including obligations of non-U.S.
governments and their respective sub-divisions,
agencies and government-sponsored enterprises. The Fund may invest up to 40% of its total assets in securities and instruments that are economically tied to emerging market countries except the Fund may invest without limit in investment grade sovereign debt that is issued by emerging market issuers that is denominated in the relevant country’s local currency ANNUAL REPORT |
| | JUNE 30, 2026 | 171 |
The Funds’ Investment Objectives and Strategies |
(Cont.) |
with less than 1 year remaining to maturity. The Fund may also invest directly in foreign currencies, including local emerging market currencies.
The Fund normally invests at least 50% of its total assets in corporate debt obligations and other corporate securities, including fixed-, variable- and floating-rate bonds, debentures, notes and other similar types of corporate debt instruments, such as preferred shares, convertible securities, bank loans and loan participations and assignments, securities (including partial loans and bonds),
payment-in-kind
payment-in-kind
step-ups,
zero-coupon
bonds, bank capital securities, bank certificates of deposit, fixed time deposits and bankers’ acceptances, stressed debt securities, structured notes and other hybrid instruments, common stocks and other equity securities. The Fund may invest up to 20% of its total assets in common stocks and other equity securities from time to time, including those it has received through the conversion of a convertible security held by the Fund or in connection with the restructuring of a debt security. Common stocks include common shares and other common equity interest issued by public or private issuers. The Fund may, but is not required to, utilize various derivative strategies (both long and short positions) involving the purchase or sale of futures and forward contracts (including foreign currency exchange contracts), call and put options, credit default swaps, total return swaps, basis swaps and other swap agreements and other derivative instruments for investment purposes, leveraging purposes or in an attempt to hedge against market, credit, interest rate, currency and other risks in the portfolio. The Fund may purchase and sell securities on a when-issued, delayed delivery or forward commitment basis and may engage in short sales. The Fund may also seek to obtain market exposure to the securities in which it invests by entering into a series of purchase and sale contracts. The Fund may use derivative instruments for other purposes, including to seek to increase liquidity, provide efficient portfolio management, broaden investment opportunities (including taking short or negative positions), implement a tax or cash management strategy, gain exposure to a particular security or segment of the market, modify the effective duration of the Fund’s portfolio investments and/or enhance total return.
The Fund has a policy not to concentrate investments in any particular industry, but may (consistent with that policy) invest up to 25% of its assets in any particular industry, and may invest a substantial portion of its assets in companies in related sectors, such as those in the banking or financial services sectors, which may share common characteristics and are often subject to similar business risks and regulatory burdens.
The Fund may invest in and/or originate loans, including, without limit, residential and/or commercial real estate or mortgage-related loans, consumer loans or other types of loans, which may be in the
form of, and without limit as to a loan’s level of seniority within a capital structure, whole loans, assignments, participations, secured and unsecured notes, senior and second lien loans, mezzanine loans, bridge loans or similar investments, including to borrowers that are unrated or have credit ratings that are determined by one or more NRSROs and/or PIMCO to be below investment grade. The Fund may invest in and/or originate loans to corporations and/or other legal entities and individuals,
including foreign (non-U.S.) entities
and individuals. The loans the Fund invests in and/or originates may vary in maturity and/or duration. The Fund is not limited in the amount, size or type of loans it may invest in and/or originate, including with respect to a single borrower or with respect to borrowers that are determined to be below investment grade, other than pursuant to any applicable law. The Fund’s investments in and/or origination of loans may also be limited by the Fund’s intention to continue to qualify as a regulated investment company (“RIC”). When acquiring and/or originating loans, the Fund is not restricted by any particular borrower credit criteria. Accordingly, certain loans acquired or originated by the Fund may be subprime in quality, or may become subprime in quality. The Fund may invest in securities that have not been registered for public sale in the U.S. or relevant
non-U.S.
jurisdictions, including without limit securities eligible for purchase and sale pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), or relevant provisions of applicable non-U.S.
law, and other securities issued in private placements. The Fund may invest in securities of other open- or closed-end
investment companies (including those advised by PIMCO), including, without limit, exchange-traded funds (“ETFs”), to the extent that such investments are consistent with the Fund’s investment objectives, strategies and policies and permissible under the 1940 Act. The Fund may invest in other investment companies to gain broad market or sector exposure or for cash management purposes, including during periods when it has large amounts of uninvested cash or when PIMCO believes share prices of other investment companies offer attractive values. The Fund may invest in certain money market funds and/or short-term bond funds (“Central Funds”), to the extent permitted by the 1940 Act, the rules thereunder or exemptive relief therefrom. The Central Funds are registered investment companies created for use by certain registered investment companies advised by PIMCO in connection with their cash management activities. The Fund treats its investments in other investment companies that invest primarily in types of securities in which the Fund may invest directly as investments in such types of securities for purposes of the Fund’s investment policies (e.g., the Fund’s investment in an investment company that invests primarily in debt securities will be treated by the Fund as an investment in a debt security). As a shareholder in an investment company, the Fund would bear its ratable share of that 172 |
PIMCO CLOSED-END FUNDS |
| (Unaudited) |
investment company’s expenses and would remain subject to payment of the Fund’s management fees and other expenses with respect to assets so invested. The holders of the Common Shares (the “Common Shareholders”) would therefore be subject to duplicative expenses to the extent the Fund invests in other investment companies. The securities of other investment companies may be leveraged, in which case the NAV and/or market value of the investment company’s shares will be more volatile than unleveraged investments. The Fund may invest in REITs. The Fund may invest in securities of companies of any market capitalization, including small. medium and large capitalizations.
The Fund may invest without limit in illiquid investments (i.e., investments that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment).
The Fund may enter into repurchase agreements, in which the Fund purchases a security from a bank or broker-dealer and the bank or broker-dealer agrees to repurchase the security at the Fund’s cost plus interest within a specified time.
The Fund may lend its portfolio securities to brokers, dealers or other financial institutions provided a number of conditions are satisfied, including that the loan is fully collateralized.
A change in the securities held by the Fund is known as “portfolio turnover.” The Fund may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. Frequent and active trading of the Fund’s portfolio holdings may cause adverse tax consequences for shareholders due to an increase in short-term capital gains and may also adversely impact the Fund’s
after-tax
returns. There have been no significant changes in the Fund’s portfolio turnover rates over the last two fiscal years, and no significant change to the portfolio turnover rates of the Fund described in the Financial Highlights can currently be predicted.
The Fund has received exemptive relief from the SEC that, to the extent the Fund relies on such relief, permits it to (among other things)
co-invest
with certain other persons, including certain affiliates of the Investment Manager and certain public or private funds managed by the Investment Manager and its affiliates, subject to certain terms and conditions. The exemptive relief from the SEC with respect to co-investments
imposes extensive conditions on any co-investments
made in reliance on such relief. Temporary defensive investments.
Use of Leverage
The Fund currently utilizes leverage principally through its reverse repurchase agreements and may also obtain additional leverage through dollar rolls/buybacks or borrowings, such as through bank loans or commercial paper, and/or other credit facilities. The Fund may also determine to issue preferred shares or other types of senior securities to add leverage to its portfolio. By using leverage, the Fund will seek to obtain a higher return for holders of Common Shares than if the Fund did not use leverage. The Fund’s Board may authorize the issuance of preferred shares without the approval of Common Shareholders. If the Fund issues preferred shares in the future, all costs and expenses relating to the issuance and ongoing maintenance of the preferred shares will be borne by the Common Shareholders, and these costs and expenses may be significant. Leveraging transactions pursued by the Fund may increase its duration and sensitivity to interest rate movements. Leveraging is a speculative technique and there are special risks and costs involved. There can be no assurance that a leveraging strategy will be used or that it will be successful during any period in which it is employed.
The Fund may also enter into transactions other than those noted above that may give rise to a form of leverage including, among others, futures and forward contracts (including foreign currency exchange contracts), total return swaps and other derivative transactions, loans of portfolio securities, short sales, when-issued, delayed delivery and forward commitment transactions and selling credit default swaps.
The Fund utilizes certain kinds of leverage, such as reverse repurchase agreements and selling credit default swaps, opportunistically and may choose to increase or decrease, or eliminate entirely, its use of such leverage over time and from time to time based on PIMCO’s assessment of the yield curve environment, interest rate trends, market conditions and other factors.
The Fund also may borrow money in order to repurchase its shares or for temporary purposes to add leverage to the portfolio or for the settlement of securities transactions which otherwise might require untimely dispositions of portfolio securities held by the Fund.
ANNUAL REPORT |
| | JUNE 30, 2026 | 173 |
Principal Risks of the Funds |
The factors that are most likely to have a material effect on a particular Fund’s portfolio as a who
l
e are called “principal risks.” Each Fund is subject to the principal risks indicated below, as applicable, whether through direct investments, investments by a subsidiary (if applicable) or derivative positions. Each Fund may be subject to additional risks other than those described below because the types of investments made by a Fund can change over time. Anti-Takeover Provisions
The Fund’s Amended and Restated Agreement and Declaration of Trust (the “Declaration of Trust”) and Bylaws (collectively, the “Organizational Documents”), as applicable, includes provisions that could limit the ability of other entities or persons to acquire control of the Fund or to convert the Fund to
open-end
status. These provisions in the Organizational Documents could have the effect of depriving the holders of common shares of beneficial interest (“Common Shares” and the holders thereof “Common Shareholders”) of the Fund of opportunities to sell their Common Shares at a premium over the then-current market price of the Common Shares or at NAV. Asset Allocation Risk
The Fund’s investment performance depends upon how its assets are allocated and reallocated. A principal risk of investing in the Fund is that PIMCO may make less than optimal or poor asset allocation decisions, which could result in the Fund being underweight or overweight in sectors, asset classes, or geographies that perform differently than expected. PIMCO employs an active approach to allocation among multiple fixed-income sectors, but there is no guarantee that such allocation techniques will produce the desired results. It is possible that PIMCO will focus on an investment that performs poorly or underperforms other investments under various market conditions. The Fund could experience losses as a result of these allocation decisions.
Call Risk
Call risk refers to the possibility that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality) and changes in the rate at which prepayments or redemptions occur can affect the return on investment of these securities. If an issuer calls a security in which the Fund has invested, the Fund may not recoup the full amount of its initial investment or may not realize the full anticipated earnings from the investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.
Certain Affiliations
Certain broker-dealers may be considered to be affiliated persons of the Fund and/or the Investment Manager due to their possible affiliations with Allianz SE, the ultimate parent of the Investment Manager, or another Allianz entity. Allianz Asset Management of America LP merged with Allianz Asset Management of America LLC (“Allianz Asset Management”), with the latter being the surviving entity, effective January 1, 2023. Following the merger, Allianz Asset Management is PIMCO managing member and direct parent entity. Absent an exemption from the SEC or other regulatory relief, the Fund is generally precluded from effecting certain principal transactions with affiliated brokers, and its ability to purchase securities being underwritten by an affiliated broker or a syndicate including an affiliated broker, or to utilize affiliated brokers for agency transactions, is subject to restrictions. This could limit the Fund’s ability to engage in securities transactions and take advantage of market opportunities.
The 1940 Act imposes significant limits on
co-investment
with affiliates of the Fund. The Fund has received exemptive relief from the SEC that, to the extent a fund relies on such relief, permits it to (among other things) co-invest
alongside certain other persons in privately negotiated investments, including certain affiliates of the Investment Manager and certain public or private funds managed by the Investment Manager and its affiliates, subject to certain terms and conditions. The exemptive relief from the SEC with respect to co-investments
imposes a number of conditions on any co-investments
made in reliance on such relief that may limit or restrict a fund’s ability to participate in an investment or require it to participate in an investment to a lesser extent, which could negatively impact a fund’s ability to execute its desired investment strategy and its returns. Subject to applicable law, the Fund may also invest alongside other PIMCO managed funds and accounts, including private funds and affiliates of the Investment Manager, without relying on the exemptive relief. Pursuant to co-investment
exemptive relief, to the extent a fund relies on such relief, the fund will be able to invest in opportunities in which PIMCO and/or its affiliates has an investment, and PIMCO and/or its affiliates will be able to invest in opportunities in which a fund has made an investment. Collateralized Bond Obligations, Collateralized Loan Obligations and Collateralized Debt Obligations Risk
CBOs, CLOs and CDOs may charge management fees and administrative expenses. For CBOs, CLOs and CDOs, the cash flows from the trust are split into two or more portions, called tranches, varying in risk and yield. The riskiest portion is the equity tranche which generally bears losses in connection with the first defaults, if any, on the bonds or loans in the trust. A senior tranche from a CLO, CBO and CDO trust ty
pic
ally has higher credit ratings and lower yields 174 |
PIMCO CLOSED-END FUNDS |
| (Unaudited) |
than the underlying securities. CLO, CBO and CDO tranches, even senior ones, can experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults and aversion to CLO, CBO or other CDO securities. The risks of an investment in a CLO, CBO or other CDO vary depending on the type of collateral securities and the class/tranche of the instrument in which the Fund invests, among other factors. Normally, CLOs, CBOs and other CDOs are privately offered and sold, and thus are not registered under the securities laws. Investments in CLOs, CBOs and CDOs may be or become illiquid. In addition to the normal risks associated with debt instruments (e.g., interest rate risk and credit risk), CLOs, CBOs and CDOs carry additional risks including, but not limited to: (i) the possibility that distributions from the collateral will not be adequate to make interest or other payments; (ii) the risk that the quality of the collateral may decline in value or default; (iii) the risk that the Fund may invest in CBOs, CLOs or other CDOs that are subordinate to other classes; and (iv) the risk that the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or others and may produce unexpected investment results.
Confidential Information Access Risk
In managing the Fund (and other PIMCO clients), PIMCO may from time to time have the opportunity to receive material,
non-public
information (“Confidential Information”) about the issuers of certain investments, including, without limit, senior floating rate loans, other loans and related investments being considered for acquisition by the Fund or held in the Fund’s portfolio. For example, an issuer of privately placed loans considered by the Fund may offer to provide PIMCO with financial information and related documentation regarding the issuer that is not publicly available. Pursuant to applicable policies and procedures, PIMCO may (but is not required to) seek to avoid receipt of Confidential Information about such issuers so as to avoid possible restrictions on its ability to purchase and sell investments on behalf of the Fund and other clients to which such Confidential Information relates. In such circumstances, the Fund (and other PIMCO clients) may be disadvantaged in comparison to other investors, including with respect to the price the Fund pays or receives when it buys or sells an investment. Further, PIMCO’s and the Fund’s abilities to assess the desirability of proposed consents, waivers or amendments with respect to certain investments may be compromised if they are not privy to available Confidential Information. PIMCO may also determine to receive such Confidential Information in certain circumstances under its applicable policies and procedures. If PIMCO intentionally or unintentionally comes into possession of Confidential Information, it may be unable, potentially for a substantial period of time, to purchase or sell investments to which such Confidential Information relates. Contingent Convertible Securities Risk
Contingent convertible securities (“CoCos”) have no stated maturity, have fully discretionary coupons and are typically issued in the form of subordinated debt instruments. CoCos generally either convert into equity or have their principal written down (including potentially to zero) upon the occurrence of certain triggering events (“triggers”) linked to regulatory capital thresholds or regulatory actions relating to the issuer’s continued viability. As a result, an investment by the Fund in CoCos is subject to the risk that coupon (i.e., interest) payments may be cancelled by the issuer or a regulatory authority in order to help the issuer absorb losses and the risk of total loss. If such an event occurs, an investor may not have any rights to repayment of the principal amount of the securities. Additionally, an investor may not be able to collect interest payments or dividends on such securities. An investment by the Fund in CoCos is also subject to the risk that, in the event of the liquidation, dissolution or
winding-up
of an issuer prior to a trigger event, the Fund’s rights and claims will generally rank junior to the claims of holders of the issuer’s other debt obligations and CoCos may also be treated as junior to an issuer’s other obligations and securities. In addition, if CoCos held by the Fund are converted into the issuer’s underlying equity securities following a trigger event, the Fund’s holding may be further subordinated due to the conversion from a debt to equity instrument. Further, the value of an investment in CoCos is unpredictable and will be influenced by many factors and risks, including interest rate risk, credit risk, market risk and liquidity risk. An investment by the Fund in CoCos may result in losses to the Fund. Convertible Securities Risk
Convertible securities are fixed income securities, preferred securities or other securities that are convertible into or exercisable for common stock of the issuer (or cash or securities of equivalent value) at either a stated price or a stated rate. Convertible debt securities pay interest and convertible preferred stocks pay dividends until they mature or are converted, exchanged or redeemed. The market values of convertible securities may decline as interest rates increase and, conversely, may increase as interest rates decline. A convertible security’s market value, however, tends to reflect the market price of the common stock of the issuing company when that stock price approaches or is greater than the convertible security’s “conversion price.” The conversion price is defined as the predetermined price at which the convertible security could be exchanged for the associated stock. Certain types of convertible securities may decline in value or lose their value entirely in the event the issuer’s financial condition becomes significantly impaired. As the market price of the underlying common stock declines, the price of the convertible security tends to be influenced more by the yield of the convertible security. Thus, it may not decli
n
e i
n price to the same extent as the underlying common stock. In the ANNUAL REPORT |
| | JUNE 30, 2026 | 175 |
Principal Risks of the Funds |
(Cont.) |
event of a liquidation of the issuing company, holders of convertible securities may be paid before the company’s common stockholders but after holders of any senior debt obligations of the company. Consequently, the issuer’s convertible securities generally entail less risk than its common stock but more risk than its other debt obligations. Convertible securities are often rated below investment grade or not rated.
Counterparty Risk
The Fund will be subject to credit risk with respect to the counterparties to the derivative contracts and other instruments entered into by the Fund or held by special purpose or structured vehicles in which the Fund invests. For example, if a bank at which the Fund or issuer has an account fails, any cash or other assets in bank or custody accounts, which may be substantial in size, could be temporarily inaccessible or permanently lost by the Fund or issuer. In the event that the Fund enters into a derivative transaction with a counterparty that subsequently becomes insolvent or becomes the subject of a bankruptcy case, the derivative transaction may be terminated in accordance with its terms and the Fund’s ability to realize its rights under the derivative instrument and its ability to distribute the proceeds could be adversely affected. If a counterparty becomes bankrupt or otherwise fails to perform its obligations under a derivative contract due to financial difficulties, the Fund may experience significant delays in obtaining any recovery (including recovery of any collateral it has provided to the counterparty) in a dissolution, assignment for the benefit of creditors, liquidation,
winding-up,
bankruptcy or other analogous proceeding. In addition, in the event of the insolvency of a counterparty to a derivative transaction, the derivative transaction would typically be terminated at its fair market value. If the Fund is owed this fair market value in the termination of the derivative transaction and its claim is unsecured, the Fund will be treated as a general creditor of such counterparty and will not have any claim with respect to any underlying security or asset. The Fund may obtain only a limited recovery or may obtain no recovery in such circumstances. Counterparty credit risk also includes the related risk of having concentrated exposure to a single counterparty, which may increase potential losses if the counterparty were to become insolvent. While the Fund may seek to manage its counterparty risk by transacting with a number of counterparties, concerns about the solvency of, or a default by, one large market participant could lead to significant impairment of liquidity and other adverse consequences for other counterparties. “Covenant-Lite” Obligations Risk
Covenant-lite obligations contain fewer maintenance covenants than other obligations, or no maintenance covenants, and may not include terms that allow the lender to monitor the performance of the borrower and declare a default if certain criteria are breached, which
would allow the lender to restructure the loan or take other action intended to help mitigate losses. Covenant-lite loans carry a risk that the borrower could transfer or encumber its assets, which could reduce the amount of assets that can be used to satisfy debts and result in losses for debtholders. Covenant-lite loans may carry more risk than traditional loans as they allow individuals and corporations to engage in activities that would otherwise be difficult or impossible under a covenant-heavy loan agreement. In the event of default, covenant-lite loans may exhibit diminished recovery values as the lender may not have the opportunity to negotiate with the borrower prior to default.
Credit Default Swaps Risk
Credit default swap agreements may involve greater risks than if the Fund had invested in the reference obligation directly since, in addition to general market risks, credit default swaps are subject to leverage risk, illiquidity risk, counterparty risk and credit risk. A buyer generally also will lose its investment and recover nothing should no credit event occur and the swap is held to its termination date. If a credit event were to occur, the value of any deliverable obligation received by the seller (if any), coupled with the upfront or periodic payments previously received, may be less than the full notional value it pays to the buyer, resulting in a loss of value to the seller. When the Fund acts as a seller of a credit default swap, it is exposed to many of the same risks of leverage described herein. As the seller, the Fund would receive a stream of payments over the term of the swap agreement provided that no event of default has occurred with respect to the referenced debt obligation upon which the swap is based. The Fund would effectively add leverage to its portfolio because, if a default occurs, the stream of payments may stop and, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the swap.
Although the Fund may seek to realize gains by selling credit default swaps that increase in value, to realize gains on selling credit default swaps, an active secondary market for such instruments must exist or the Fund must otherwise be able to close out these transactions at advantageous times. In addition to the risk of losses described above, if no such secondary market exists or the Fund is otherwise unable to close out these transactions at advantageous times, selling credit default swaps may not be profitable for the Fund.
The market for credit default swaps has become more volatile as the creditworthiness of certain counterparties has been questioned and/or downgraded. The Fund will be subject to credit risk with respect to the counterparties to the credit default swap contract (whether a clearing corporation or another third party). If a counterparty’s credit becomes significantly impaired, multiple requests for collateral pos
tin
g in a short period of time could increase the risk that the Fund may not receive adequate collater
al. The Fund may exit its obligations under a 176 |
PIMCO CLOSED-END FUNDS |
| (Unaudited) |
credit default swap only by terminating the contract and paying applicable breakage fees, or by entering into an offsetting credit default swap position, which may cause the Fund to incur more losses. The Fund may obtain no or limited recovery in a bankruptcy or other reorganizational proceedings, and any recovery may be significantly delayed.
Credit Risk
The Fund could experience losses if the issuer or guarantor of a fixed income security (including a security purchased with securities lending collateral), the counterparty to a derivatives contract, or the issuer or guarantor of collateral, repurchase agreement or a loan of portfolio securities is unable or unwilling, or is perceived (whether by market participants, rating agencies, pricing services or otherwise) as unable or unwilling, to make timely principal and/or interest payments or to otherwise honor its financial obligations. The risk that such issuer, guarantor or counterparty is less willing or able to do so is heightened in market environments where interest rates are changing, notably when rates are rising. The downgrade of the credit rating of a security or of the issuer of a security held by the Fund may decrease its value. Measures such as average credit quality may not accurately reflect the true credit risk of the Fund. This is especially the case if the Fund consists of securities with widely varying credit ratings. Securities are subject to varying degrees of credit risk, which are often reflected in credit ratings. This risk is greater to the extent the Fund uses leverage or derivatives in connection with the management of the Fund, which would be magnified in the event that initial or variation margin is not provided by the counterparty to such transaction (or not provided below a certain threshold amount). Rising or high interest rates may deteriorate the credit quality of an issuer or counterparty, particularly if an issuer or counterparty faces challenges rolling or refinancing its obligations. The Fund’s investments may be adversely affected if any of the issuers it is invested in are subject to an actual or perceived (whether by market participants, rating agencies, pricing services or otherwise) deterioration to their credit quality.
Credit risk includes credit spread risk, which is the risk that credit spreads (i.e., the difference in yield between securities that is due to differences in their actual or perceived credit quality) may increase when the market believes that investments generally have a greater risk of default. Increasing credit spreads may reduce the market values of the Fund’s investments. Credit spreads often increase more for lower rated and unrated securities than for investment grade securities. In addition, when credit spreads increase, reductions in market value will generally be greater for longer-maturity securities. Further, credit spread duration (a measure of credit spread risk) can vary significantly from interest rate duration (e.g., for floating rate debt securities, credit spread duration typically will be higher than interest rate duration). The Fund may add credit spread duration to its
portfolio, for example through the use of derivatives (e.g., credit default swaps), even while it has lower interest rate duration. The credit spread duration of the Fund’s portfolio may vary, in some cases significantly, from its interest rate duration.
CSDR Related Risk
The European Union has adopted a settlement discipline regime under Regulation (EU) No 909/2014 and the Settlement Discipline RTS as they may be modified from time to time (“CSDR”), which will have phased compliance dates. It aims to reduce the number of settlement fails that occur in EEA central securities depositories (“CSDs”) and address settlement fails where they occur. The key elements of the regime are: (i) mandatory
buy-ins
— if a settlement fail continues for a specified period of time after the intended settlement date, a buy-in
process must be initiated to effect the settlement; (ii) cash penalties — EEA CSDs are required to impose cash penalties on participants that cause settlement fails and distribute these to receiving participants; and (iii) allocations and confirmations — EEA investment firms are required to take measures to prevent settlement fails, including putting in place arrangements with their professional clients to communicate securities allocations and transaction confirmations. These requirements apply to transactions in transferable securities (e.g., shares and bonds), money market instruments, units in funds and emission allowances that are to be settled via an EEA CSD and, in the case of cash penalties and buy-in
requirements only, are admitted to trading or traded on an EEA trading venue or cleared by an EEA central counterparty. If the Fund enters into in-scope
transactions, the CSDR settlement discipline regime may result in increased operational and compliance costs being borne directly or indirectly by the Fund. CSDR may also affect liquidity and increase trading costs associated with relevant securities. If in-scope
transactions are subject to additional expenses and penalties as a consequence of the CSDR settlement discipline regime, such expenses and penalties may be charged to the relevant Fund. Currency Risk
Investments denominated in foreign
(non-U.S.)
currencies or that trade in and receive revenues in, foreign (non-U.S.)
currencies, derivatives or other instruments that provide exposure to foreign (non-U.S.)
currencies, are subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign
(non-U.S.)
countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest or inflation rates, balance of payments and governmental surpluses or deficits, intervention (or the failure to intervene) by U.S. or foreign (non-U.S.)
governments, central banks or supranational entities such as the International Monetary Fund, the ANNUAL REPORT |
| | JUNE 30, 2026 | 177 |
Principal Risks of the Funds |
(Cont.) |
imposition of currency controls or other political developments in the U.S. or abroad. As a result, the Fund’s investments in or exposure to foreign
(non-U.S.)
currencies and/or foreign (non-U.S.)
currency-denominated securities may reduce the returns of the Fund. Currency risk may be particularly high to the extent that the Fund invests in foreign (non-U.S.)
currencies or engages in foreign currency transactions that are economically tied to emerging market countries. These currency transactions may present market, credit, currency, liquidity, legal, political and other risks different from, or greater than, the risks of investing in developed foreign (non-U.S.)
currencies or engaging in foreign currency transactions that are economically tied to developed foreign countries. Devaluation of a currency by a country’s government or banking authority can significantly impact the value of any investments denominated in that currency. These fluctuations may have a significant adverse impact on the value of the Fund’s portfolio and/or the level of Fund distributions made to Common Shareholders. There is no assurance that a hedging strategy, if used, will be successful. Currency risk may be particularly high because the Fund may, at times or in general, have substantial exposure to emerging market currencies, and engage in foreign currency transactions that are economically tied to emerging market countries. These currency transactions may present market, credit, currency, liquidity, legal, political, headline, reputational and other risks different from, or greater than, the risks of investing in developed foreign
(non-U.S.)
currencies or engaging in foreign currency transactions that are economically tied to developed foreign countries. The Fund may also be adversely impacted by expenses incurred by converting between currencies to purchase and sell securities not valued in the U.S. dollar, as well as by currency restrictions, exchange control regulation, or governmental restrictions that limit or otherwise delay the Fund’s ability to convert currencies.
Moreover, currency hedging techniques may be unavailable with respect to emerging market currencies. As a result, the Fund’s investments in or exposure to foreign
(non-U.S.)
currencies and/or foreign (non-U.S.)
currency-denominated, and especially emerging market-currency denominated, securities may reduce the returns of the Fund. The local emerging market currencies in which the Fund may be invested from time to time may experience substantially greater volatility against the U.S. dollar than the major convertible currencies of developed countries. Some of the local currencies in which the Fund may invest are neither freely convertible into one of the major currencies nor internationally traded. The local currencies may be convertible into other currencies only inside the relevant emerging market where the limited availability of such other currencies may tend to inflate their values relative to the local currency in question. Such internal exchange markets can therefore be said to be neither liquid nor competitive. In addition, many of the currencies of emerging market countries in which the Fund may invest have experienced steady devaluation relative to freely convertible currencies.
Continuing uncertainty as to the status of the euro and the European Monetary Union (“EMU”) has created significant volatility in currency and financial markets generally. Any partial or complete dissolution of the EMU could have significant adverse effects on currency and financial markets, and on the values of the Fund’s portfolio investments. If one or more EMU countries were to stop using the euro as its primary currency, the Fund’s investments in such countries may be redenominated into a different or newly adopted currency. As a result, the value of those investments could decline significantly and unpredictably. In addition, securities or other investments that are redenominated may be subject to foreign currency risk, liquidity risk and valuation risk to a greater extent than similar investments currently denominated in euros. To the extent a currency used for redenomination purposes is not specified in respect of certain
EMU-related
investments, or should the euro cease to be used entirely, the currency in which such investments are denominated may be unclear, making such investments particularly difficult to value or dispose of. The Fund may incur additional expenses to the extent it is required to seek judicial or other clarification of the denomination or value of such securities. There can be no assurance that if the Fund earns income or capital gains in a
non-U.S.
country or PIMCO otherwise seeks to withdraw the Fund’s investments from a given country, capital controls imposed by such country will not prevent, or cause significant expense in, doing so. Cyber Security Risk
As the use of technology, including cloud-based technology, has become more prevalent and interconnected in the course of business, the Fund is potentially more susceptible to operational and information security risks resulting from breaches in cyber security, including: processing and human errors, inadequate or failed internal or external processes, failures in system and technology, errors in algorithms used with respect to Fund operations and changes in personnel. A breach in cyber security refers to both intentional and unintentional cyber events from outside threat actors or internal resources that may, among other things, cause the Fund to lose proprietary information, suffer data corruption and/or destruction, lose operational capacity, result in the unauthorized release or other misuse of confidential information, or otherwise disrupt normal business operations. Geopolitical tensions can increase the scale and sophistication of deliberate cybersecurity attacks, particularly those from nation-states or from entities with nation-state backing, who may desire to use cybersecurity attacks to cause damage or create
178 |
PIMCO CLOSED-END FUNDS |
| (Unaudited) |
leverage against geopolitical rivals. Cyber security breaches may involve unauthorized access to the Fund’s digital information systems (e.g., through “hacking” or malicious software coding), and may come from multiple sources, including outside attacks such as attacks (i.e., efforts to make network services unavailable to intended users) or cyber extortion, including exfiltration of data held for ransom and/or “ransomware” attacks that renders systems inoperable until the ransom is paid, or insider actions (e.g., intentionally or unintentionally harmful acts of PIMCO personnel). In addition, cyber security breaches involving the Fund’s third party service providers (including but not limited to advisers,
denial-of-service
sub-advisers,
administrators, transfer agents, custodians, vendors, suppliers, distributors and other third parties), trading counterparties or issuers in which the Fund invests can also subject the Fund to many of the same risks associated with direct cyber security breaches or extortion of company data. PIMCO’s use of cloud-based service providers could heighten or change these risks. In addition, work-from-home arrangements by the Fund, the Investment Manager or their service providers could increase all of the above risks, create additional data and information accessibility concerns, and make the Fund, the Investment Manager or their service providers susceptible to operational disruptions, any of which could adversely impact their operations. Cyber security failures or breaches may result in financial losses to the Fund and its shareholders. For example, cyber security failures or breaches involving trading counterparties or issuers in which the Fund invests could adversely impact such counterparties or issuers and cause the Fund’s investment to lose value. These failures or breaches may also result in disruptions to business operations, potentially resulting in financial losses; interference with the Fund’s ability to calculate its NAV, process shareholder transactions or otherwise transact business with shareholders; impediments to trading; violations of applicable privacy and other laws; regulatory fines; penalties; third-party claims in litigation; reputational damage; reimbursement or other compensation costs; additional compliance and cyber security risk management costs and other adverse consequences. In addition, substantial costs may be incurred in order to prevent any cyber incidents in the future.
Like with operational risk in general, the Fund has established business continuity plans and risk management systems designed to reduce the risks associated with cyber security. However, there are inherent limitations in these plans and systems, including that certain risks may not have been identified, in large part because different or unknown threats may emerge in the future. As such, there is no guarantee that such efforts will succeed, especially because the Fund does not directly control the cyber security systems of issuers in which
the Fund may invest, trading counterparties or third-party service providers to the Fund. Such entities have experienced cyber attacks and other attempts to gain unauthorized access to systems from time to time, and there is no guarantee that efforts to prevent or mitigate the effects of such attacks or other attempts to gain unauthorized access will be successful. There is also a risk that cyber security breaches may not be detected. The Fund and its shareholders may suffer losses as a result of a cyber security breach related to the Fund, its service providers, trading counterparties or the issuers in which the Fund invests.
Debt Securities Risk
Debt securities are generally subject to the risks described below and further herein:
Issuer risk.
Interest rate risk.
Prepayment risk.
Credit risk.
ANNUAL REPORT |
| | JUNE 30, 2026 | 179 |
Principal Risks of the Funds |
(Cont.) |
Reinvestment risk.
Duration and maturity risk.
In addition, from time to time, uncertainty regarding the status of negotiations in the U.S. government to increase the statutory debt ceiling could impact the creditworthiness of the United States and could impact the liquidity and value of U.S. Government and other securities and ultimately the Fund.
Derivatives Risk
The Fund may, but is not required to, utilize a variety of derivative instruments (both long and short positions) for investment or risk management purposes. Derivatives or other similar instruments (referred to collectively as “derivatives”) are financial contracts whose value depends on, or is derived from, the value of an underlying asset, reference rate or index. For example, the Fund may use derivative instruments for purposes of increasing liquidity, providing efficient portfolio management, broadening investment opportunities (including taking short or negative positions), implementing a tax or cash management strategy, gaining exposure to a particular security or segment of the market, modifying the effective duration of the Fund’s portfolio investments and/or enhancing total return. Investments in derivatives may take the form of buying and/or writing (selling) derivatives, and/or the Fund may otherwise become an obligor under a derivatives transaction. These transactions may produce short-term capital gains in the form of premiums or other returns for the Fund (which may support, constitute and/or increase the distributions paid by, or the yield of, the Fund) but create the risk of losses that can significantly exceed such current income or other returns. For example, the premium received for writing a call option may be dwarfed by the losses the Fund may incur if the call option is exercised, and derivative transactions where the Fund is an obligor can produce an
up-front
benefit, but the potential for leveraged losses. The distributions, or distribution rates, paid by the Fund should not be viewed as the total returns or overall performance of the Fund. These strategies may also produce adverse tax consequences (for example, the Fund’s income and gain-generating strategies may generate current income and gains, including short-term capital gains, taxable as ordinary income) and limit the Fund’s opportunity to profit or otherwise benefit from certain gains. The Fund may enter into opposing derivative transactions, or otherwise take opposing positions. Such transactions can generate distributable gains (which, as noted elsewhere, may be taxed as ordinary income) and create the risk of losses and NAV declines.
The Fund may engage in investment strategies, including the use of derivatives, to, among other things, generate current, distributable income, even if such strategies could potentially result in declines in the Fund’s net asset value. The Fund’s income and gain-generating strategies, including certain derivatives strategies, may generate current income and gains, including short-term capital gains, taxable as ordinary income sufficient to support distributions, even in situations when the Fund has experienced a decline in net assets due to, for example, adverse changes in the broad U.S. or
non-U.S.
securities markets or the Fund’s portfolio of investments, or arising from its use of derivatives. Consequently, Fund shareholders may receive distributions subject to tax at ordinary income rates at a time when their investment in the Fund has declined in value, which may be economically similar to a taxable return of capital.The use of derivatives involves risks different from, and possibly greater than, the risks associated with investing directly in securities and other traditional investments. Derivatives, which may increase market exposure and are subject to a number of risks, including leverage risk, liquidity risk (which may be heightened for highly-customized derivatives), interest rate risk, market risk, counterparty (including credit) risk, operational risk (such as documentation issues, settlement issues and systems failures), legal risk (such as insufficient documentation, insufficient capacity or authority of a counterparty, and issues with the legality or enforceability of a contract), counterparty risk, tax risk and management risk, as well as risks arising from changes in applicable regulatory requirements, governmental risk, sanctions risk, risks arising from margin requirements and risks arising from mispricing or valuation complexity (including the risk of improper valuation), as well as the risks associated with the underlying asset, reference rate or index. They also involve the risk that changes in the value of a derivative instrument may not correlate perfectly with the underlying asset, rate or index. By investing in a derivative instrument, the Fund could lose more than the initial amount invested, and derivatives may increase the volatility of the Fund, especially in unusual or extreme market conditions. In addition, the use of derivatives may cause the Fund’s investment returns to be impacted by the performance of assets the Fund does not own, potentially resulting in the Fund’s total investment exposure exceeding the value of its portfolio. Certain derivatives have the potential for unlimited loss, regardless of the size of the initial investment. The Fund may utilize asset segregation and posting of collateral for risk management or other purposes. The Fund may be
180 |
PIMCO CLOSED-END FUNDS |
| (Unaudited) |
required to hold additional cash or sell other investments in order to obtain cash to close out a position and changes in the value of a derivative may also create margin delivery or settlement payment obligations for the Fund. Also, suitable derivative transactions may not be available in all circumstances and there can be no assurance that the Fund will engage in these transactions to reduce exposure to other risks when that would be beneficial or that, if used, such strategies will be successful. The Fund’s use of derivatives may increase or accelerate the amount of taxes payable by Common Shareholders.
Non-centrally-cleared
over-the
counter (“OTC”) derivatives are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for non-centrally-cleared
OTC derivatives. The primary credit risk on derivatives that are exchange-traded or traded through a central clearing counterparty resides with the Fund’s clearing broker, or the clearinghouse. Derivatives that are cleared by a central clearing organization can still be subject to different risks, including the creditworthiness of the central clearing organization and its members.
In addition, derivatives that are traded on an exchange are subject to the risk that an exchange may limit the maximum daily price fluctuation of a derivative contract and restrict or suspend trading of a contract that has reached a limit. Such limit governs only price movements of a contract during a particular trading day and therefore does not limit potential losses because the limit may work to prevent the liquidation of unfavorable positions. A daily limit may be reached for several consecutive days with little or no trading.
Participation in the markets for derivative instruments involves investment risks and transaction costs to which the Fund may not be subject absent the use of these strategies. The skills needed to successfully execute derivative strategies may be different from those needed for other types of transactions. If the Fund incorrectly forecasts the value and/or credit-worthiness of securities, currencies, interest rates, counterparties or other economic factors involved in a derivative transaction, the Fund might have been in a better position if the Fund had not entered into such derivative transaction. In evaluating the risks and contractual obligations associated with particular derivative instruments or other similar investments, it is important to consider that certain derivative transactions, absent a default or termination event, may only be modified or terminated by mutual consent of the Fund and its counterparty.
Therefore, it may not be possible for the Fund to modify, terminate, or offset the Fund’s obligations or the Fund’s exposure to the risks associated with a derivative transaction prior to its scheduled
termination or maturity date, which may create a possibility of increased volatility and/or decreased liquidity to the Fund. Hedges are sometimes subject to imperfect matching between the derivative and the underlying instrument, and there can be no assurance that the Fund’s hedging transactions will be effective. Derivatives used for hedging or risk management may not operate as intended and may expose the Fund to additional risks. In such case, the Fund may experience losses.
Because the markets for certain derivative instruments (including markets located in foreign countries) are relatively new and still developing, appropriate derivative transactions may not be available in all circumstances for risk management or other purposes. Upon the expiration of a particular contract, the Fund may wish to retain the Fund’s position in the derivative instrument by entering into a similar contract, but may be unable to do so if the counterparty to the original contract is unwilling to enter into the new contract and no other appropriate counterparty can be found. When such markets are unavailable, the Fund will be subject to increased liquidity and investment risk.
The Fund may enter into opposite sides of interest rate swap and other derivatives for the principal purpose of generating distributable gains on the one side (characterized as ordinary income for tax purposes) that are not part of the Fund’s duration or yield curve management strategies (“paired swap transactions”), and with a substantial possibility that the Fund will experience a corresponding capital loss and decline in NAV with respect to the opposite side transaction (to the extent it does not have corresponding offsetting capital gains). Consequently, Common Shareholders may receive distributions and owe tax on amounts that are effectively a taxable return of the shareholder’s investment in the Fund, at a time when their investment in the Fund has declined in value, which tax may be at ordinary income rates. In addition, the Fund’s use of derivatives may cause the Fund to realize higher amounts of short-term capital gains (generally taxed at ordinary income tax rates), potentially subjecting shareholders of the Fund to adverse tax consequences. The tax treatment of certain derivatives in which the Fund invests may be unclear and thus subject to recharacterization. Any recharacterization of payments made or received by the Fund pursuant to derivatives potentially could affect the amount, timing or character of Fund distributions. In addition, the tax treatment of such investment strategies may be changed by regulation or otherwise.
More generally, sales of the Fund’s portfolio holdings may result in short-term capital gains (which are generally taxed to shareholders at ordinary income tax rates when distributed net of short-term capital losses and net of long-term capital losses), potentially subjecting shareh
o
lders of the Fund to adverse tax consequences. ANNUAL REPORT |
| | JUNE 30, 2026 | 181 |
Principal Risks of the Funds |
(Cont.) |
Although hedging can reduce or eliminate losses, it can also reduce or eliminate gains. Hedges are sometimes subject to imperfect matching between the derivative and the underlying instrument, and there can be no assurance that the Fund’s hedging transactions will be effective. Derivatives used for hedging or risk management may not operate as intended or may expose the Fund to additional risks. In addition, derivatives used for hedging may partially protect the Fund from the risks they were intended to hedge yet not fully mitigate the impact of such risks. The regulation of the derivatives markets has increased over time, and additional future regulation of the derivatives markets may make derivatives more costly, may limit the availability or reduce the liquidity of derivatives, or may otherwise adversely affect the value or performance of derivatives. Any such adverse future developments could impair the effectiveness or raise the costs of the Fund’s derivative transactions, impede the employment of the Fund’s derivatives strategies, or adversely affect the Fund’s performance and cause the Fund to lose value.
Distressed and Defaulted Securities Risk
Investments in the securities of financially distressed issuers involve substantial risks, including the risk of default. Distressed securities generally trade significantly below “par” or full value because investments in such securities and debt of distressed issuers or issuers in default are considered speculative and involve substantial risks in addition to the risks of investing in high-yield bonds. Such investments may be in default at the time of investment. In addition, these securities may fluctuate more in price and are typically less liquid. The Fund also will be subject to significant uncertainty as to when, and in what manner, and for what value obligations evidenced by securities of financially distressed issuers will eventually be satisfied. Defaulted obligations might be repaid only after lengthy workout or bankruptcy proceedings, during which the issuer might not make any interest or other payments. In any such proceeding relating to a defaulted obligation, the Fund may lose its entire investment or may be required to accept cash or securities with a value substantially less than its original investment. Moreover, any securities received by the Fund upon completion of a workout or bankruptcy proceeding may be less liquid, speculative or restricted as to resale. Similarly, if the Fund participates in negotiations with respect to any exchange offer or plan of reorganization with respect to the securities of a distressed issuer, the Fund may be restricted from disposing of such securities. To the extent that the Fund becomes involved in such proceedings, the Fund may have a more active participation in the affairs of the issuer than that assumed generally by an investor. The Fund may incur additional expenses to the extent it is required to seek recovery upon a default in the payment of principal or interest on its portfolio holdings.
Also among the risks inherent in investments in a troubled issuer is that it frequently may be difficult to obtain information as to the true
financial condition of such issuer. PIMCO’s judgments about the c
re
dit quality of a financially distressed issuer and the relative value of its securities may prove to be wrong. Distribution Rate Risk
The Fund’s distribution rate may be affected by numerous factors, including but not limited to changes in realized and projected market returns, fluctuations in market interest rates, Fund performance, and other factors. The Fund’s distributions may be comprised of a return of capital. In general terms, a return of capital would occur where a Fund distribution (or portion thereof) represents a return of a portion of your investment, rather than net income or capital gains generated from your investment during a particular period. There can be no assurance that a change in market conditions or other factors will not result in a change in the Fund’s distribution rate or that the rate will be sustainable in the future. Additionally, the distribution rate is not indicative of the Fund’s performance and may not correlate with the actual returns generated by the Fund’s investments.
For instance, during periods of low or declining interest rates, the Fund’s distributable income and dividend levels may decline for many reasons. For example, the Fund may have to deploy uninvested assets (whether from proceeds from matured, traded or called debt obligations or other sources) in new, lower-yielding instruments. Additionally, payments from certain instruments that may be held by the Fund (such as variable and floating rate securities) may be negatively impacted by declining interest rates, which may also lead to a decline in the Fund’s distributable income and dividend levels.
Emerging Markets Risk
Foreign
(non-U.S.)
investment risk may be particularly high to the extent that the Fund invests in securities of issuers based in or doing business in emerging market countries or invests in securities denominated in the currencies of emerging market countries. Investing in securities of issuers based in or doing business in emerging markets entails all of the risks of investing in foreign securities noted above, but to a heightened degree. Investments in emerging market countries pose a greater degree of systemic risk (i.e., the risk of a cascading collapse of multiple institutions within a country, and even multiple national economies). The inter-relatedness of economic and financial institutions within and among emerging market economies has deepened over the years, with the effect that institutional failures and/or economic difficulties that are of initially limited scope may spread throughout a country, a region or all or most emerging market countries. This may undermine any attempt by the Fund to reduce risk through geographic diversification of its portfolio.
182 |
PIMCO CLOSED-END FUNDS |
| (Unaudited) |
There is a heightened possibility of imposition of withholding or other taxes on interest or dividend income or capital gains generated from emerging market securities. Governments of emerging market countries may engage in confiscatory taxation or expropriation of income and/or assets to raise revenues or to pursue a domestic political agenda. In the past, emerging market countries have nationalized assets, companies and even entire sectors, including the assets of foreign investors, with inadequate or no compensation to the prior owners. There can be no assurance that the Fund will not suffer a loss of any or all of its investments, or interest or dividends thereon, due to adverse fiscal or other policy changes in emerging market countries.
There is also a greater risk that an emerging market government may take action that impedes or prevents the Fund from taking income and/or capital gains earned in the local currency and converting into U.S. dollars (i.e., “repatriating” local currency investments or profits). Certain emerging market countries have sought to maintain foreign exchange reserves and/or address the economic volatility and dislocations caused by the large international capital flows by controlling or restricting the conversion of the local currency into other currencies. This risk tends to become more acute when economic conditions otherwise worsen. There can be no assurance that if the Fund earns income or capital gains in an emerging market currency or PIMCO otherwise seeks to withdraw the Fund’s investments from a given emerging market country, capital controls imposed by such country will not prevent, or cause significant expense, or delay in, doing so.
Bankruptcy law and creditor reorganization processes may differ substantially from those in the United States, resulting in greater uncertainty as to the rights of creditors, the enforceability of such rights, reorganization timing and the classification, seniority and treatment of claims. In certain emerging market countries, although bankruptcy laws have been enacted, the process for reorganization remains highly uncertain. In addition, it may be impossible to seek legal redress against an issuer that is a sovereign state.
Emerging market countries typically have less established regulatory, disclosure, legal, accounting, recordkeeping and financial reporting systems than those in more developed markets, which may increase the potential for market manipulation or reduce the scope or quality of financial information available to investors. Governments in emerging market countries are often less stable and more likely to take extra-legal action with respect to companies, industries, assets, or foreign ownership than those in more developed markets. Moreover, it can be more difficult for investors to bring litigation or enforce judgments against issuers in emerging markets or for U.S. regulators to bring enforcement actions, or obtain information needed to pursue or enforce
such judgments, against such issuers. In addition, foreign companies with securities listed on U.S. exchanges may be delisted if they do not meet U.S. accounting standards and auditor oversight requirements, which may decrease the liquidity and value of the securities. The Fund may also be subject to emerging markets risk if it invests in derivatives or other securities or instruments whose value or return are related to the value or returns of emerging markets securities.
Other heightened risks associated with emerging markets investments include without limit (i) risks due to less social, political and economic stability; (ii) the smaller size of the market for such securities and a lower volume of trading, resulting in a lack of liquidity and in price volatility; (iii) certain national policies which may restrict the Fund’s investment opportunities, including sanctions and restrictions on investing in issuers or industries deemed sensitive to relevant national interests and requirements that government approval be obtained prior to investment by foreign persons; (iv) certain national policies that may restrict the Fund’s repatriation of investment income, capital or the proceeds of sales of securities, including temporary restrictions on foreign capital remittances; (v) the lack of uniform accounting and auditing standards and/or standards that may be significantly different from the standards required in the United States; (vi) less publicly available financial and other information regarding issuers; (vii) potential difficulties in enforcing contractual obligations; and (viii) higher rates of inflation, higher interest rates and other economic concerns. Countries with emerging securities markets may additionally experience problems with share registration, settlement and custody, which may result in losses to the Fund. The Fund may invest to a substantial extent in emerging market securities that are denominated in local currencies, subjecting the Fund to a greater degree of foreign currency risk. Also, investing in emerging market countries may entail purchases of securities of issuers that are insolvent, bankrupt or otherwise of questionable ability to satisfy their payment obligations as they become due, subjecting the Fund to a greater amount of credit risk and/or high yield risk. The economy of some emerging markets may be particularly exposed to or affected by a certain industry or sector, and therefore issuers and/or securities of such emerging markets may be more affected by the performance of such industries or sectors.
Equity Securities and Related Market Risk
The market price of common stocks and other equity securities may go up or down, sometimes rapidly or unpredictably. Equity securities may decline in value due to factors affecting equity securities markets generally, particular industries represented in those markets, or the issuer itself. The values of equity securities may decline due to real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates, adverse changes to credit markets or adverse investor sentiment
ANNUAL REPORT |
| | JUNE 30, 2026 | 183 |
Principal Risks of the Funds |
(Cont.) |
generally. They may also decline due to labor shortages or increased production costs and competitive conditions within an industry. Equity securities generally have greater price volatility than bonds and other debt securities.
Different types of equity securities provide different voting and dividend rights and priority in the event of the bankruptcy and/or insolvency of the issuer. In addition to common stock, equity securities may include preferred securities, convertible securities and warrants. Equity securities other than common stock are subject to many of the same risks as common stock, although possibly to different degrees. The risks of equity securities are generally magnified in the case of equity investments in distressed companies.
Focused Investment Risk
To the extent that the Fund focuses its investments in a particular sector, it may be susceptible to loss due to adverse developments affecting that sector, including (but not limited to): governmental regulation; inflation; rising interest rates; cost increases in raw materials, fuel and other operating expenses; technological innovations that may render existing products and equipment obsolete; competition from new entrants; high research and development costs; increased costs associated with compliance with environmental or other governmental regulations; and other economic, business or political developments specific to that sector. Furthermore, the Fund may invest a substantial portion of its assets in companies in related sectors that may share common characteristics, are often subject to similar business risks and regulatory burdens, and whose securities may react similarly to the types of developments described above, which will subject the Fund to greater risk. The Fund also will be subject to focused investment risk to the extent that it invests a substantial portion of its assets in a particular issuer, market, asset class, country or geographic region.
Foreign
(Non-U.S.)
Investment Risk Foreign
(non-U.S.)
securities may experience more rapid and extreme changes in value than securities of U.S. issuers or securities that trade exclusively in U.S. markets. The securities markets of many foreign countries are relatively small, with a limited number of companies representing a small number of industries. Additionally, issuers of foreign (non-U.S.)
securities are usually not subject to the same degree of regulation as U.S. issuers. Financial reporting, legal, corporate governance, accounting, auditing and custody standards of foreign countries differ, in some cases significantly, from U.S. standards. Global economies and financial markets are becoming increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. Foreign (non-U.S.)
market trading hours, clearance and settlement procedures, and holiday schedules may limit the Fund’s ability to buy and sell securities. Investments in foreign
(non-U.S.)
markets may also be adversely affected by governmental actions such as the imposition of capital controls, nationalization of companies or industries, expropriation of assets or the imposition of punitive taxes. The governments of certain countries may prohibit or impose substantial restrictions on foreign (non-U.S.)
investing in their capital markets or in certain sectors or industries. In addition, a foreign (non-U.S.)
government may limit or cause delay in the convertibility or repatriation of its currency which would adversely affect the U.S. dollar value and/or liquidity of investments denominated in that currency. Certain foreign (non-U.S.)
investments may become less liquid in response to market developments or adverse investor perceptions, or become illiquid after purchase by the Fund, particularly during periods of market turmoil. A reduction in trading in securities of issuers located in countries whose economies are heavily dependent upon trading with key partners may have an adverse impact on a Fund’s investments. Also, nationalization, expropriation or confiscatory taxation, unstable governments, decreased market liquidity, currency blockage, market disruptions, political changes, security suspensions or diplomatic developments, trade restrictions (including tariffs) or the imposition of sanctions or other similar measures could adversely affect the Fund’s investments in a foreign
(non-U.S.)
country and may render holdings in that foreign (non-U.S.)
country illiquid or even worthless. In the event of nationalization, expropriation or other confiscation, the Fund could lose its entire investment in foreign (non-U.S.)
securities. The type and severity of sanctions and other similar measures, including counter sanctions and other retaliatory actions, that may be imposed could vary broadly in scope, and their impact is difficult to ascertain. These types of measures may include, but are not limited to, banning a sanctioned country or certain persons or entities associated with such country from global payment systems that facilitate cross-border payments, restricting securities transactions, restricting dealings with entities that are critical to the infrastructure of securities and related transactions in specific jurisdictions, restricting transactions in specified sectors of certain countries, and freezing the assets of particular countries, entities or persons. The imposition of sanctions and other similar measures could, among other things, result in a decline in the value and/or liquidity of affected securities downgrades in the credit ratings of affected or related securities, currency devaluation or volatility, and increased market volatility and disruption in the securities or sanctioned country and throughout the world. Sanctions and other similar measures could directly or indirectly limit or prevent a Fund from buying and selling securities, , receiving interest or principal payments due on the securities, significantly delay or prevent securities transactions, and adversely impact a Fund’s liquidity and performance and/or prevent the liquidation of a portfolio holding 184 |
PIMCO CLOSED-END FUNDS |
| (Unaudited) |
sanctioned securities. Adverse conditions in a certain region can adversely affect securities of other countries whose economies appear to be unrelated. To the extent that the Fund invests a significant portion of its assets in a specific geographic region or in securities denominated in a particular foreign
(non-U.S.)
currency, the Fund will generally have more exposure to regional economic risks, including weather emergencies and natural disasters, associated with foreign (non-U.S.)
investments. Additionally, events and evolving conditions in certain markets or regions may alter the risk profile of investments tied to those markets or regions. This may cause investments tied to such markets or regions to become riskier or more volatile, even when investments in such markets or regions were perceived as comparatively stable historically. Foreign (non-U.S.)
securities may also be less liquid (particularly during market closures due to local market holidays or other reasons) and more difficult to value than securities of U.S. issuers. Investments in Russia
. The Fund may invest in securities and instruments that are economically tied to Russia. Investments in Russia are subject to various risks such as, but not limited to political, economic, legal, market and currency risks. The risks include uncertain political and economic policies, short term market volatility, poor accounting standards, corruption and crime, an inadequate regulatory system, regional armed conflict and unpredictable taxation. Investments in Russia are particularly subject to the risk that further economic sanctions, export and import controls, and other similar measures may be imposed by the United States and/or other countries. Other similar measures may include, but are not limited to, banning or expanding bans on Russia or certain persons or entities associated with Russia from global payment systems that facilitate cross-border payments, restricting the settlement of securities transactions by certain investors, and freezing Russian assets or those of particular countries, entities or persons with ties to Russia (e.g., Belarus). Such sanctions and other similar measures — which may impact companies in many sectors, including energy, financial services, technology, accounting, quantum computing, shipping, aviation, metals and mining, defense, architecture, engineering, construction, manufacturing and transportation, among others — and Russia’s countermeasures may negatively impact the Fund’s performance and/or ability to achieve its investment objectives. For example, certain investments may be prohibited and/or existing investments may become illiquid (e.g., in the event that transacting in certain existing investments is prohibited, securities markets close, or market participants cease transacting in certain investments in light of geopolitical events, sanctions or related considerations), which could render any such securities held by the Fund unmarketable for an indefinite period of time and/or cause the Fund to sell other portfolio holdings at a disadvantageous time or price or to continue to hold investments that the Fund no longer seeks to hold. In addition, such sanctions or other similar measures, and the Russian government’s response, could result in a downgrade of Russia’s credit rating or of securities of issuers located in or economically tied to Russia, devaluation of Russia’s currency and/or increased volatility with respect to Russian securities and the ruble. Moreover, disruptions caused by Russian military action or other actions (including cyberattacks, espionage or other asymmetric measures) or resulting actual or threatened responses to such activity may impact Russia’s economy and Russian and other issuers of securities in which the Fund is invested.
Such resulting actual or threatened responses may include, but are not limited to, purchasing and financing restrictions, withdrawal of financial intermediaries, boycotts or changes in consumer or purchaser preferences, sanctions, export and import controls, tariffs or cyberattacks on the Russian government, Russian companies or Russian individuals, including politicians. Any actions by Russia made in response to such sanctions or retaliatory measures could further impair the value and liquidity of Fund investments. Sanctions and other similar measures have resulted in defaults on debt obligations by certain corporate issuers and the Russian Federation that could lead to cross-defaults or cross-accelerations on other obligations of these issuers.
The Russian securities market is characterized by limited volume of trading, resulting in difficulty in obtaining accurate prices and trading. These issues can be magnified as a result of sanctions and other similar measures that may be imposed and the Russian government’s response. The Russian securities market, as compared to U.S. markets, has significant price volatility, less liquidity, a smaller market capitalization and a smaller number of traded securities. There may be little publicly available information about issuers. Settlement, clearing and registration of securities transactions are subject to risks. Prior to the implementation of the National Settlement Depository (“NSD”), a recognized central securities depository, there was no central registration system for equity share registration in Russia, and registration was carried out by either the issuers themselves or by registrars located throughout Russia. Title to Russian equities held through the NSD is now based on the records of the NSD and not the registrars. Although the implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, issues resulting in loss can still occur. In addition, sanctions by the European Union against the NSD, as well as the potential for sanctions by other governments, could make it more difficult to conduct or confirm transactions involving Russian securities. Ownership of securities issued by Russian companies that are not held through depositories such as the NSD may be recorded by companies themselves and by registrars. Moreover, changes in Russian laws and regulations could
ANNUAL REPORT |
| | JUNE 30, 2026 | 185 |
Principal Risks of the Funds |
(Cont.) |
require the transfer of securities from the NSD to registrars or other parties outside of standard custodial arrangements. In such cases, the risk is increased that the Fund could lose ownership rights through fraud, negligence or oversight. While applicable Russian regulations impose liability on registrars for losses resulting from their errors, it may be difficult for the Fund to enforce any rights it may have against the registrar or issuer of the securities in the event of loss of share registration. In addition, issuers and registrars are still prominent in the validation and approval of documentation requirements for corporate action processing in Russia. Because the documentation requirements and approval criteria vary between registrars and issuers, there remain unclear and inconsistent market standards in the Russian market with respect to the completion and submission of corporate action elections. In addition, sanctions or Russian countermeasures may prohibit or limit a Fund’s ability to participate in corporate actions, and therefore require the Fund to forego voting on or receiving funds that would otherwise be beneficial to the Fund. To the extent that the Fund suffers a loss relating to title or corporate actions relating to its portfolio securities, it may be difficult for the Fund to enforce its rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a custodian bank, and therefore the custodian may be considered the ultimate owner of securities they hold for their clients.
Adverse currency exchange rates are a risk and there may be a lack of available currency hedging instruments. Investments in Russia may be subject to the risk of nationalization or expropriation of assets. Oil, natural gas, metals, minerals and timber account for a significant portion of Russia’s exports, leaving the country vulnerable to swings in world prices and to sanctions or other actions that may be directed at the Russian economy as a whole or at Russian oil, natural gas, metals, minerals or timber industries.
Foreign Loan Originations Risk
The Fund may originate loans to foreign entities and individuals, including foreign
(non-U.S.)
and emerging market entities and individuals. Such loans may involve risks not ordinarily associated with exposure to loans to United States entities and individuals. The foreign lending industry may be subject to less governmental supervision and regulation than exists in the United States; conversely, foreign regulatory regimes applicable to the lending industry may be more complex and more restrictive than those in the United States, resulting in higher costs associated with such investments, and such regulatory regimes may be subject to interpretation or change without prior notice to investors, such as the Fund. Foreign lending may not be subject to accounting, auditing, and financial reporting standards and practices comparable to those in the United States. Due to differences in legal systems, there may be difficulty in obtaining or enforcing a court judgment outside the United States. In addition, to the extent that investments are made in a limited number of countries, events in those countries will have a more significant impact on the Fund. The Fund’s loans to foreign entities and individuals may be subject to risks of increased transaction costs, potential delays in settlement or unfavorable differences between the U.S. economy and foreign economies.
The Fund’s exposure to loans to foreign entities and individuals may be subject to withholding and other foreign taxes, which may adversely affect the net return on such investments. In addition, fluctuations in foreign currency exchange rates and exchange controls may adversely affect the market value of the Fund’s exposure to loans to foreign entities and individuals. The Fund is unlikely to be able to pass through to its shareholders foreign income tax credits in respect of any foreign income taxes it pays.
High Yield Securities Risk
To the extent that the Fund invests in high yield securities and unrated securities of similar credit quality (commonly known as “high yield securities” or “junk bonds”), the Fund may be subject to greater levels of market risk, credit risk, call risk and liquidity risk than funds that do not invest in such securities, which could have a negative effect on the NAV and market price of the Fund’s Common Shares or Common Share dividends. High yield securities may be issued by companies that are restructuring, are smaller and less creditworthy or are more highly leveraged or indebted than other companies, or are financially distressed, and therefore they typically have more difficulty making scheduled payments of principal and interest than issuers of higher rated investments. These securities are considered predominantly speculative by rating agencies with respect to an issuer’s continuing ability to make principal and interest payments, and their value may be more volatile than other types of securities and may result in substantial or total loss of income and principal. An economic downturn or individual issuer developments could adversely affect the market for these securities and reduce the Fund’s ability to sell these securities at an advantageous time or price. An economic downturn could also lead to a higher
non-payment
rate, and a high yield security may lose significant market value before a default occurs. The Fund may purchase distressed securities that are in default or the issuers of which are in bankruptcy, which involve heightened risks. High yield securities structured as securities tend to be especially volatile as they are particularly sensitive to downward pricing pressures from rising interest rates or widening spreads and may require the Fund to make taxable distributions of imputed income without receiving the actual cash currency. Issuers of high yield securities may have the right to “call” or redeem the issue prior to maturity, which may result in the Fund having to reinvest the proceeds in other high yield securities or similar instruments that may
zero-coupon
bonds or pay-in-kind
186 |
PIMCO CLOSED-END FUNDS |
| (Unaudited) |
pay lower interest rates. The Fund may also be subject to greater levels of liquidity risk than funds that do not invest in high yield securities. Consequently, transactions in high yield securities may involve greater costs than transactions in more actively traded securities.
A lack of publicly-available information, irregular trading activity and wide bid/ask spreads among other factors, may, in certain circumstances, make high yield debt more difficult to sell at an advantageous time or price than other types of securities or instruments. These factors may result in the Fund being unable to realize full value for these securities and/or may result in the Fund not receiving the proceeds from a sale of a high yield security for an extended period after such sale, each of which could result in losses to the Fund. Because of the risks involved in investing in high yield securities, an investment in the Fund should be considered speculative.
In general, lower-rated debt securities carry a greater degree of risk that the issuer will lose its ability to make interest and principal payments, which could have a negative effect on the Fund. Securities of below investment grade quality are regarded as having predominantly speculative characteristics with respect to capacity to pay interest and repay principal and are commonly referred to as “high yield” securities or “junk bonds.” High yield securities involve a greater risk of default and their prices are generally more volatile and sensitive to actual or perceived negative developments. Debt securities in the lowest investment grade category also may be considered to possess some speculative characteristics by certain rating agencies. The Fund may purchase stressed or distressed securities that are in default or the issuers of which are in bankruptcy, which involve heightened risks.
An economic downturn could severely affect the ability of issuers (particularly those that are highly leveraged) to service or repay their debt obligations. Lower-rated securities are generally less liquid than higher-rated securities, which may have an adverse effect on a Fund’s ability to dispose of them. = High yield securities are particularly sensitive to adverse economic, market, industry or issuer-specific developments, which may result in an increased incidence of default. During periods of deteriorating economic conditions, such as recessions or periods of rising unemployment, or changing interest rates (notably increases), high yield securities are particularly susceptible to credit and default risk as delinquencies and losses could increase, and such increases could be sudden and significant. An economic downturn or individual issuer developments could adversely affect the market for these investments and reduce a Fund’s ability to sell these investments at an advantageous time or price. These types of developments could cause high yield securities to lose significant market value, including before a default occurs only at prices lower than if such securities were widely traded.
In the event of default, the Fund may incur additional expenses to seek recovery or to negotiate new terms with a defaulting issuer. To the extent the Fund focuses on below investment grade debt obligations, PIMCO’s capabilities in analyzing credit quality and associated risks will be particularly important, and there can be no assurance that PIMCO will be successful in this regard. Due to the risks involved in investing in high yield securities, an investment in the Fund should be considered speculative.
The Fund’s credit quality policies apply only at the time a security is purchased, and the Fund is not required to dispose of a security in the event that a rating agency or PIMCO downgrades its assessment of the credit characteristics of a particular issue. In determining whether to retain or sell such a security, PIMCO may consider factors including, but not limited to, PIMCO’s assessment of the credit quality of the issuer of such security, the price at which such security could be sold and the rating, if any, assigned to such security by other rating agencies. Analysis of creditworthiness may be more complex for issuers of high yield securities than for issuers of higher quality debt securities.
Inflation/Deflation Risk
Inflation risk is the risk that the value of assets or income from the Fund’s investments will be worth less in the future as inflation decreases the value of payments at future dates. As inflation increases, the real value of the Fund’s portfolio could decline. Inflation rates may change frequently and significantly as a result of various factors, including unexpected shifts in the domestic or global economy or changes in fiscal or monetary policies. Deflation risk is the risk that prices throughout the economy decline over time. Deflation may have an adverse effect on the creditworthiness of issuers and may make issuer default more likely, which may result in a decline in the value of the Fund’s portfolio and Common Shares.
Inflation-Indexed Security Risk
Inflation-indexed debt securities are subject to the effects of actual or anticipated changes in market interest rates caused by factors other than inflation (e.g., real interest rates). In general, the value of an inflation-indexed security, including Treasury Inflation-Protected Securities (“TIPS”), tends to decrease when real interest rates increase and can increase when real interest rates decrease. Thus generally, during periods of rising inflation, the value of inflation-indexed securities will tend to increase and during periods of deflation, their value will tend to decrease. Interest payments on inflation-indexed securities are unpredictable and will fluctuate as the principal and interest are adjusted for inflation. There can be no assurance that the inflation index used (i.e., the Consumer Price Index (“CPI”)), which is calculated and published by a third-party, will accurately measure the real rate of inflation in the pric
es
of goods and services. Increases in ANNUAL REPORT |
| | JUNE 30, 2026 | 187 |
Principal Risks of the Funds |
(Cont.) |
the principal value of TIPS due to inflation are considered taxable ordinary income for the amount of the increase in the calendar year. Any increase in the principal amount of an inflation-indexed debt security will be considered taxable ordinary income, even though the Fund will not receive the principal until maturity. Additionally, a CPI swap can potentially lose value if the realized rate of inflation over the life of the swap is less than the fixed market implied inflation rate (fixed breakeven rate) that the investor agrees to pay at the initiation of the swap. With municipal inflation-indexed securities, the inflation adjustment is integrated into the coupon payment, which is federally tax exempt (and may be state tax exempt). For municipal inflation-indexed securities, there is no adjustment to the principal value. Because municipal inflation-indexed securities are a small component of the municipal bond market, they may be less liquid than conventional municipal bonds.
Insurance-Linked and Other Instruments Risk
The Fund may invest in insurance-linked instruments and similar investments (which may include, for example, exposure to reinsurance contracts (through sidecars or otherwise), event-linked bonds, such as catastrophe and resilience bonds, and securities relating to life insurance policies, annuity contracts and premium finance loans). The Fund could lose a portion or all of the principal it has invested in these types of investments, and the right to additional interest and/or dividend payments with respect to the investments, upon the occurrence of one or more trigger events, as defined within the terms of an investment.
Trigger events may include natural or other perils of a specific size or magnitude that occur in a designated geographic region during a specified time period, and/or that involve losses or other metrics that exceed a specific amount. The Fund may also invest in insurance-linked instruments that are subject to “indemnity triggers.” An indemnity trigger is a mechanism where the payout to the investor is based on the actual losses incurred by the insurer and come into play when losses from a specified event exceed a designated level. Insurance-linked instruments subject to indemnity triggers are often regarded as being subject to potential moral hazard, since such insurance-linked investments are triggered by actual losses of the ceding sponsor and the ceding sponsor may have an incentive to take actions and/or risks that would have an adverse effect on the Fund. There is no way to accurately predict whether a trigger event will occur and, accordingly, insurance-linked instruments and similar investments carry significant risk. In addition to the specified trigger events, these types of investments may expose the Fund to other risks, including but not limited to issuer (credit) default, adverse regulatory or jurisdictional interpretations and adverse tax consequences.
The Fund may also gain exposure to reinsurance contracts (through insurance-linked securities, sidecars or otherwise). This exposure may include “excess of loss” contracts, wherein liability arises only if and when losses exceed a specified amount, and proportional reinsurance, wherein a pro rata portion of the premiums and liabilities of the cedant associated with a specified business or a portfolio if insurance contracts are linked to the investment. Investments linked to reinsurance transactions may involve significant insurance brokerage fees, fronting fees and other transaction costs.
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Filing: N-CSR - PIMCO HIGH INCOME FUND (PHK)
Accession Number: 0001193125-26-382403