PIMCO PTY updates 80% investment policy

Rhea-AI Filing Summary

PIMCO Corporate & Income Opportunity Fund is revising its investment policy: effective August 28, 2026 the Fund will invest, under normal circumstances, at least 80% of its net assets (plus borrowings for investment purposes) in corporate debt obligations and/or income-producing investments, which may include instruments of non-corporate issuers. The revision expressly lists income-producing Fixed Income Instruments, dividend-paying equities, and derivatives that produce income or premium payments as within the 80% Policy. The prospectus supplement also states derivatives that provide exposure to policy investments or their market risk factors are expected to count toward the 80% Policy, clarifies derivative valuation methods (market, notional, or full exposure value), and requires the Fund to give shareholders at least 60 days written notice before changing the 80% Policy.

Insights

Fund Governance Specialist

Supplement formalizes broader income instruments and derivative treatment under the 80% policy.

The supplement replaces Prospectus and SAI language to include income-producing Fixed Income Instruments, dividend-paying equities, and income-producing derivatives within the Fund's 80% Policy, effective August 28, 2026. It also adds an explicit 60-day shareholder notice requirement before any change to that policy.

The changes clarify that certain derivatives will be counted toward the policy if they provide exposure to covered investments or their market risk factors, and that derivatives may be valued using market, notional, or full exposure approaches for policy compliance. Subsequent filings or shareholder communications will show how the Fund applies valuation choices to compliance calculations.

Fixed Income Portfolio Analyst

The Fund formally permits broader income instruments and clarifies derivative inclusion and valuation.

The revised Prospectus expands the definition of income-producing investments to include dividend-paying equities and structured income instruments, and states derivatives that produce income or provide exposure may be counted toward the 80% Policy. This affects how asset composition is reported under that policy.

Valuation flexibility (market, notional, or full exposure) is permitted for compliance purposes; the practical impact depends on which valuation method the Fund applies in calculating policy compliance and will be apparent in future disclosures.

Key Figures

80% Policy: 80% Effective date: August 28, 2026 Shareholder notice: 60 days +1 more

4 metrics

80% Policy 80% Fund must invest at least 80% of net assets in corporate debt obligations and/or income-producing investments

Effective date August 28, 2026 Date the revised policy and Prospectus/SAI language become effective

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

Prospectus date September 28, 2023 Original Prospectus and SAI date being supplemented

Key Terms

80% Policy, Fixed Income Instruments, full exposure value, notional value

4 terms

80% Policy regulatory

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

Fixed Income Instruments financial

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

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

full exposure value financial

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

notional value financial

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

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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What change did PTY make to its 80% investment policy?

PTY broadened the 80% policy to include income-producing investments and certain derivatives. The Prospectus now states at least 80% of net assets will be invested in corporate debt obligations and/or income-producing investments, which may include non-corporate issuers and income-producing derivatives.

When does the revised 80% policy for PTY take effect?

The policy change is effective August 28, 2026. The supplement replaces Prospectus language and the change will be reflected in the Fund's Prospectus and Statement of Additional Information as of that date.

Will derivatives count toward PTY’s 80% policy?

Yes—derivatives that provide exposure to covered investments or their market risk factors are expected to count toward the 80% policy. The Prospectus explicitly states such derivative instruments will be counted to the extent they provide the relevant exposure.

What notice must PTY provide before changing the 80% policy again?

The Fund must provide shareholders at least 60 days’ written notice before changing the 80% policy. That notice requirement is added verbatim to both the Prospectus and the SAI.

How will PTY value derivatives for policy compliance?

The Fund may value derivatives at market value, notional value, full exposure value, or a combination. The SAI permits different valuation methods for compliance calculations, including combinations for numerator/denominator purposes.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 06/24/2026 - 03:14 PM Learn about SEC filing dates

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PIMCO Corporate & Income Opportunity Fund

(the “Fund”)

Important Notice Regarding Change in Investment Policy

Supplement dated June 24, 2026 to the Fund’s Prospectus dated September 28, 2023, as supplemented from time to time (the “Prospectus”); and to the Statement of Additional Information dated September 28, 2023, as supplemented from time to time (the “SAI”)

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

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

Prospectus

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

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

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

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

The last sentence of the third paragraph under the “Investment Objective and Policies” section of the Prospectus is deleted and replaced with the following:

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

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

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

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

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

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

Fixed Income Instruments

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

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

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

• mortgage-backed and other asset-backed securities;

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

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

• bank capital and trust preferred securities;

• loans, including participations in and assignments thereof;

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

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

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

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

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

• obligations of international agencies or supranational entities.

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

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

SAI

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

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

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

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

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

Investors Should Retain This Supplement for Future Reference

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