Dynamic Income Opportunities Fund

PDO

Updated May 19, 2022

Objective

Seeks current income as a primary objective and capital appreciation as a secondary objective

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Overview

Fund Overview

The fund utilizes an opportunistic approach to pursue high conviction income-generating ideas across credit markets to seek current income as a primary objective and capital appreciation as a secondary objective.

In managing the fund, PIMCO employs a dynamic asset allocation strategy across 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.

The fund will normally invest at least 25% of its total assets in mortgage-related assets issued by government agencies or other governmental entities or by private originators or issuers. The fund may invest up to 30% of its total assets in securities and instruments that are economically tied to “emerging market” countries; however, the fund may invest without limitation in short-term investment grade sovereign debt issued by emerging market issuers. The fund may normally invest up to 40% of its total assets in bank loans (including, among others, senior loans, delayed funding loans, covenant-lite obligations, revolving credit facilities and loan participations and assignments). It is expected that the fund normally will have a short to intermediate average portfolio duration (i.e., within a zero to eight year range), although it may be shorter or longer at any time depending on market conditions and other factors.

PIMCO has been actively managing income-producing securities since the firm’s founding in 1971. The firm’s innovative investment process is designed to add value for clients by marrying a top-down, global macroeconomic outlook with bottom-up analysis from one of the industry’s most experienced research teams.

ASSET CLASS
  • Fixed Income
  • Multi Sector
CUSIP

69355M107

IPO Market Price

$20.00

IPO NAV

$20.00

Managers

Alfred T. Murata

Portfolio Manager, Mortgage Credit

View Profile for Alfred T. Murata

Daniel J. Ivascyn

Group Chief Investment Officer

View Profile for Daniel J. Ivascyn

Joshua Anderson

Portfolio Manager, Income and Asset-Backed Securities

View Profile for Joshua Anderson

Jamie Weinstein

Portfolio Manager, Head of Corporate Special Situations

View Profile for Jamie Weinstein

Sonali Pier

Portfolio Manager, Multi-Sector Credit

View Profile for Sonali Pier

Distributions

Historical Prices & Distributions

Daily Distribution Rates

as of 05/19/2022
Daily NAV Distribution Rate 8.55%
Daily Market Price Distribution Rate 9.47%

Monthly Distribution Rates

as of 04/30/2022
Monthly NAV Distribution Rate 8.17%
Monthly Market Price Distribution Rate 8.90%

Distributions

Latest Distribution ($ / Share) as of 05/11/2022 $0.118400
Distribution (YTD)1 as of 05/11/2022 $0.592000
Special Cash Dividend Distribution as of 12/13/2021 $0.370000
Long-Term Capital Gains Distribution as of 12/13/2021 $0.020000
Short-Term Capital Gains Distribution as of 12/13/2021 $0.100000

disclosures

1Data is based on distributions since the most recent calendar year end and does not include special cash dividends.
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 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. A negative value for Undistributed Net Investment Income represents the potential for a ROC on an estimated tax basis. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the composition of distributions. Final determination of a distribution’s tax character will be made on Form 1099 DIV sent to shareholders each January.

It is important to note that differences exist between the fund’s daily internal accounting records, the fund’s financial statements prepared in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. It is possible that the 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 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 see the fund’s most recent shareholder report for more details.

Fees & Expenses

Management Fee2 1.15%
Total Expense Ratio (excluding interest expense)3 1.93%
Total Expense Ratio (including interest expense)3 2.61%

disclosures

2The Management Fee is applied to the Fund's total managed assets. Total managed assets includes total assets of the fund (including assets attributable to any reverse repurchase agreements, dollar rolls, borrowings and preferred shares that may be outstanding) minus accrued liabilities (other than liabilities representing reverse repurchase agreements, dollar rolls and borrowings). By way of clarification, with respect to any reverse repurchase agreement or similar transaction, “total managed assets” includes any proceeds from the sale of an asset of the fund to a counterparty in such a transaction, in addition to the value of the underlying asset as of the relevant measuring date. In addition, for purposes of calculating “total managed assets,” the fund’s derivative investments will be valued based on their market value.
3Expense ratios are calculated as a percentage of common net assets, and are estimated for the current fiscal year. Total expense ratio (excluding interest expense) excludes certain investment expenses, such as expenses from borrowings and repurchase agreements, any dividends and other costs paid on preferred shares issued by the Fund, and dividend expenses from investments on short sales.

Prices & Performance

Daily Statistics

All data as of 05/19/2022

NAV $16.62 Market Price $15.01
Daily Change $-0.03 Daily Change $-0.02
One Day Return -0.18% One Day Return -0.13%
Premium / Discount -9.69%

All data as of

All data as of

Calendar Year Returns %

All data as of

Fund Pricing

(Since Inception) All data as of 05/20/2022

High/Low Ranges - One Year

All data as of 05/19/2022

High/Low NAV $20.66/$16.62
High/Low Market Price $23.18/$14.77

disclosures

Past performance is not a guarantee or a reliable indicator of future results. An investment in the fund involves risk, including loss of principal. Investment return and the value of shares will fluctuate. Shares may be worth more or less than original purchase price. Due to market volatility, current performance may be lower or higher than average annual returns shown. Returns are calculated by determining the percentage change in NAV or market price (as applicable) in the specific period. The calculation assumes that all dividends and distributions, if any, have been reinvested. NAV and market price returns does not reflect broker sales charges or commissions in connection with the purchase or sales of Fund shares and includes the effect of any expense reductions. Returns for a period of less than one year is not annualized. Returns for a period of more than one year represents the average annual return. Performance at market price will differ from results at NAV. Although market price returns typically reflect investment results over time, during shorter periods returns at market price can also be influenced by factors such as changing views about the fund, market conditions, supply and demand for the fund’s shares or changes in fund dividends and distributions.
Daily YTD return is from the most recent calendar year end.

Portfolio Composition

All data as of unless otherwise stated

Top Industry Sectors
Market Value %

Healthcare 4.40
Technology 4.21
Wirelines 4.10
Consumer Products 3.59
Transportation Services 3.07
Aerospace/Defense 3.06
Banks 2.91
Gaming 2.72
Consumer Cyclical Services 2.39
Real Estate 2.26

Maturity %

0-1 yrs 36.11
1-3 yrs 9.49
3-5 yrs 19.35
5-10 yrs 19.17
10-20 yrs 9.98
20+ yrs 5.90
Effective Maturity (yrs) 8.30

Duration in Years

Total Leveraged-Adjusted Effective Durations (yrs.) 3.87

Sector Allocation %4

MV % DWE %
US Government Related5 -0.73 -2.04
Mortgage 15.37 20.85
Non-Agency Mortgage 14.26 23.00
Agency MBS 1.11 -2.15
CMBS 15.06 5.94
High Yield Credit 30.62 34.68
Non-USD Developed 11.73 3.53
Emerging Markets6 11.40 26.88
Invest. Grade Credit 2.32 7.16
Municipal 1.03 3.42
Other7 2.85 1.03
Net Other Short Duration Instruments8 10.35 -1.45

Top Countries %9

MV% DWE%
United States 69.40 58.19
United Kingdom 4.93 -4.42
South Africa 3.85 5.06
Brazil 2.86 10.13
Canada 2.19 2.78

disclosures

4For information as of October 31, 2015 and hereafter, the Sector Allocation MV% shown reflects exposures gained through the use of interest rate swaps at the market value of the swaps. Such exposures were reflected at the notional amount of the swaps for prior periods. As a result, this change may have the effect of reflecting lower exposures for one or more sectors and correspondingly higher exposures for other sectors than has or would be shown using the prior method.
5May include nominal and inflation-protected Treasuries, Treasury futures and options, agencies, FDIC-guaranteed and government-guaranteed corporate securities, and interest rate swaps.
6Short duration emerging markets instruments includes an emerging market security or other instrument economically tied to an emerging market country by country of risk with an effective duration less than one year and rated investment grade or higher or if unrated, determined to be similar quality by PIMCO. Emerging Markets includes the value of short duration emerging markets instruments previously reported in another category.
7May include convertibles, preferreds, and yankee bonds.
8Net Other Short Duration Instruments includes securities and other instruments (except instruments tied to emerging markets by country of risk) with an effective duration less than one year and rated investment grade or higher or, if unrated, determined by PIMCO to be of comparable quality, commingled liquidity funds, uninvested cash, interest receivables, net unsettled trades, broker money, short duration derivatives (for example Eurodollar futures) and derivatives offsets. With respect to certain categories of short duration securities, the Adviser reserves the discretion to require a minimum credit rating higher than investment grade for inclusion in this category. Derivatives Offsets includes offsets associated with investments in futures, swaps and other derivatives. Such offsets may be taken at the notional value of the derivative position which in certain instances may exceed the actual amount owed on such positions.
9By country of issuer, sorted by gross market value.
Duration is a measure of the fund's price sensitivity to changes in interest rates expressed in years.
Total Leverage -Adjusted Duration represents the Fund’s effective portfolio duration taking into account its use of leverage, including both portfolio leverage (e.g., reverse repos, credit default swaps, and tender option bonds), and any structural leverage, such as auction-rate preferred shares, if any, issued by the Fund. Effective duration is the duration for a bond with an embedded option when the value is calculated to include the expected change in cash flow caused by the option as interest rates change.

Assets & Leverage

All data as of 04/30/2022 unless otherwise stated

Assets (in millions)

Common Net Assets $1,913
Outstanding Preferred Shares $0
Total Managed Assets10 $3,608

Leverage

% of Total Managed Assets % of Common Net Assets
Total Effective Leverage 46.96 88.53
Preferred Shares11 0.00 0.00
Reverse Repurchase Agreements12 45.35 85.49
Floating Rate Notes Issued13 0.00 0.00
Credit Default Swaps14 1.61 3.03

disclosures

10Total Managed Assets include Net Assets Applicable to Common Shareholders ("Common Net Assets") + Preferred Shares + Reverse Repurchase Agreements + Credit Default Swaps + Floating Rate Notes Issued in Tender Option Bond ("TOB") transactions, as applicable. In TOB transactions, a fund sells a fixed rate municipal bond to a broker who places that bond in a Special Purpose Trust from which Floating Rate Notes and Inverse Floaters are issued.
11Preferred Shares (%) consists of Preferred Shares divided by Total Managed Assets.
12Reverse Repurchase Agreements (%) consists of Reverse Repurchase Agreements divided by Total Managed Assets.
13Floating Rate Notes Issued (%) consists of Floating Rate Notes Issued in transactions divided by Total Managed Assets. In TOB transactions, a fund sells a fixed rate municipal bond to a broker who places that bond in a Special Purpose Trust from which Floating Rate Notes and Inverse Floaters are issued.
14Credit Default Swaps (“CDS”) (%) consists of the aggregate notional amount of sell protection CDS plus the net market value of buy protection CDS, as applicable, divided by Total Managed Assets.
Past performance is no guarantee of future results. Investing in securities entails risk, including possible loss of principal. The use of leverage may cause a Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet segregation requirements. The use of leverage may cause a Fund to be more volatile, which may increase the risk of investment loss.

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Disclosures

A word about risk:

Investors should carefully consider the fund’s investment objectives, risks, charges and expenses before investing.

The fund’s shares do not represent a deposit or obligation of, and are not guaranteed or endorsed by, any bank or other insured depository institution, and are not insured by the FDIC, the Federal Reserve Board or any other government agency. You may lose money by investing in the fund. Certain risks associated with investing in the fund are summarized below.

Past performance is not a guarantee or a reliable indicator of future results.

No Prior History . The fund is a newly organized, non-diversified, limited term closed-end management investment company with no history of operations and is designed for long-term investors and not as a trading vehicle.

Market Discount Risk . As with any stock, the price of the fund’s common shares will fluctuate with market conditions and other factors. If you sell your common shares, the price received may be more or less than your original investment. The common shares are designed for long-term investors and should not be treated as trading vehicles. Shares of closed-end management investment companies frequently trade at a discount from their net asset value. The common shares may trade at a price that is less than the initial offering price. This risk may be greater for investors who sell their shares relatively shortly after completion of the initial offering.

New/Small Fund Risk. A new or smaller fund’s performance may not represent how the fund is expected to or may perform in the long term if and when it becomes larger and has fully implemented its investment strategies. Investment positions may have a disproportionate impact (negative or positive) on performance in a new and smaller fund, such as the fund. New and smaller funds may also require a period of time before they are invested in securities that meet their investment objectives and policies and achieve a representative portfolio composition. Fund performance may be lower or higher during this “ramp-up” period, and may also be more volatile, than would be the case after the fund is fully invested. Similarly, a new or smaller fund’s investment strategy may require a longer period of time to show returns that are representative of the strategy.

Limited Term Risk. Unless the limited term provision of the fund’s Amended and Restated Agreement and Declaration of Trust (the “Declaration”) is amended by shareholders in accordance with the Declaration, or unless the fund completes an Eligible Tender Offer and converts to perpetual existence, the fund will terminate on or about the Dissolution Date. The fund’s investment objectives and policies are not designed to seek to return to investors that purchase shares in this offering their initial investment of $20.00 per share on the Dissolution Date or in an Eligible Tender Offer, and such investors and investors that purchase shares after the completion of this offering may receive more or less than their original investment upon dissolution or in an Eligible Tender Offer. Because the assets of the fund will be liquidated in connection with the dissolution, the fund will incur transaction costs in connection with dispositions of portfolio securities. The fund does not limit its investments to securities having a maturity date prior to the Dissolution Date and may be required to sell portfolio securities when it otherwise would not, including at times when market conditions are not favorable, which may cause the fund to lose money. During the period beginning one year before the Dissolution Date (the “Wind-Down Period”), the fund may begin liquidating all or a portion of the fund’s portfolio, and the fund may deviate from its investment strategy and may not achieve its investment objectives. As a result, during the Wind- Down Period, the fund’s distributions may decrease, and such distributions may include a return of capital. It is expected that common shareholders will receive cash in any liquidating distribution from the fund, regardless of their participation in the fund’s automatic dividend reinvestment plan. The fund’s investment objectives and policies are not designed to seek to return investors’ original investment upon termination of the fund, and investors may receive more or less than their original investment upon termination of the fund. As the assets of the fund will be liquidated in connection with its termination, the fund may be required to sell portfolio securities when it otherwise would not, including at times when market conditions are not favorable, which may cause the fund to lose money. The disposition of portfolio investments by the fund could also cause market prices of such instruments, and hence the NAV and market price of the common shares, to decline. In addition, disposition of portfolio investments will cause the fund to incur increased brokerage and related transaction expenses. If the fund conducts an Eligible Tender Offer, the fund anticipates that funds to pay the aggregate purchase price of shares accepted for purchase pursuant to the tender offer will be first derived from any cash on hand and then from the proceeds from the sale of portfolio investments held by the fund. In addition, the fund may be required to dispose of portfolio investments in connection with any reduction in the fund’s outstanding leverage necessary in order to maintain the fund’s desired leverage ratios following a tender offer. The purchase of common shares by the fund pursuant to a tender offer will have the effect of increasing the proportionate interest in the fund of non-tendering common shareholders. All common shareholders remaining after a tender offer may be subject to proportionately higher expenses due to the reduction in the fund’s total assets resulting from payment for the tendered common shares. Such reduction in the fund’s total assets may result in less investment flexibility, reduced diversification and greater volatility for the fund, and may have an adverse effect on the fund’s investment performance. The fund is not required to conduct an Eligible Tender Offer. If the fund conducts an Eligible Tender Offer, there can be no assurance that the number of tendered common shares would not result in the fund having aggregate net assets below the Dissolution Threshold, in which case the Eligible Tender Offer will be canceled, no common shares will be repurchased pursuant to the Eligible Tender Offer and the fund will dissolve on the Dissolution Date (subject to possible extensions). Following the completion of an Eligible Tender Offer in which the number of tendered common shares would result in the fund having aggregate net assets greater than or equal to the Dissolution Threshold, the Board may, by a vote of a majority of the Board and seventy-five percent (75%) of the Continuing Trustees (as defined in the Declaration), eliminate the Dissolution Date without shareholder approval. Thereafter, the fund will have a perpetual existence. The Investment Manager may have a conflict of interest in recommending to the Board that the Dissolution Date be eliminated and the fund have a perpetual existence. The fund is not required to conduct additional tender offers following an Eligible Tender Offer and conversion to perpetual existence. Therefore, remaining common shareholders may not have another opportunity to participate in a tender offer. Shares of closed-end management investment companies frequently trade at a discount from their NAV, and as a result remaining common shareholders may only be able to sell their Shares at a discount to 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. PIMCO will employ an active approach to allocation among multiple fixed income sectors, but there is no guarantee that such allocation techniques will produce the desired results.

Management Risk. The fund is subject to management risk because it is an actively managed investment portfolio. PIMCO and each individual portfolio manager will apply investment techniques and risk analysis in making investment decisions for the fund, but there can be no guarantee that these decisions will produce the desired results. Certain securities or other instruments in which the fund seeks to invest may not be available in the quantities desired. In addition, regulatory restrictions, actual or potential conflicts of interest or other considerations may cause PIMCO to restrict or prohibit participation in certain investments. Additionally, legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and each individual portfolio manager in connection with managing the fund and may also adversely affect the ability of the fund to achieve its investment objectives. There also can be no assurance that all of the personnel of PIMCO will continue to be associated with PIMCO for any length of time.

Interest Rate Risk. Interest rate risk is the risk that fixed income securities and other instruments in the fund’s portfolio will decline in value because of a change in interest rates. Interest rate changes can be sudden and unpredictable, and the fund may lose money as a result of movements in interest rates.

Credit Risk. The fund could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivatives contract, repurchase agreement or a loan of portfolio securities is unable or unwilling, or is perceived as unable or unwilling, to make timely principal and/or interest payments or to otherwise honor its obligations. The downgrade of the credit 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. This risk is greater to the extent the fund uses leverage or derivatives in connection with the management of the fund.

Mortgage-Related and Other Asset-Backed Instruments Risk. Generally, rising interest rates tend to extend the duration of fixed rate mortgage-related assets, making them more sensitive to changes in interest rates. As a result, in a period of rising interest rates, the fund may exhibit additional volatility since individual mortgage holders are less likely to exercise prepayment options, thereby putting additional downward pressure on the value of these securities and potentially causing the fund to lose money. The fund’s investments in other asset-backed instruments are subject to risks similar to those associated with mortgage-related assets, as well as additional risks associated with the nature of the assets and the servicing of those assets. Payment of principal and interest on asset-backed instruments may be largely dependent upon the cash flows generated by the assets backing the instruments, and asset-backed instruments may not have the benefit of any security interest in the related assets. The fund expects that investments in subordinate mortgage-backed and other asset-backed instruments will be subject to risks arising from delinquencies and foreclosures, thereby exposing its investment portfolio to potential losses. The mortgage markets in the United States and in various foreign countries have experienced extreme difficulties in the past that adversely affected the performance and market value of certain mortgage-related investments. Delinquencies and losses on residential and commercial mortgage loans (especially subprime and second-lien mortgage loans) may increase, and a decline in or flattening of housing and other real property values may exacerbate such delinquencies and losses.

Privately-Issued Mortgage-Related Securities Risk. There are no direct or indirect government or agency guarantees of payments in pools created by non-governmental issuers. Privately-issued mortgage-related securities are also not subject to the same underwriting requirements for the underlying mortgages that are applicable to those mortgage-related securities that have a government or government-sponsored entity guarantee.

Privately-issued mortgage-related securities are not traded on an exchange and there may be a limited market for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors. Without an active trading market, mortgage-related securities held in the fund’s portfolio may be particularly difficult to value because of the complexities involved in assessing the value of the underlying mortgage loans.

High Yield Securities Risk . 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 net asset value of the fund’s common shares or common share dividends. Securities of below-investment-grade quality, commonly referred to as “high yield” securities or “junk bonds,” are regarded as having predominantly speculative characteristics with respect to capacity to pay interest and repay principal. High yield securities involve a greater risk of default and their prices are generally more volatile and sensitive to actual or perceived negative developments than are the prices of higher grade securities. Under adverse market or economic conditions, the secondary market for below-investment-grade securities could contract further, independent of any specific adverse changes in the condition of a particular issuer. Due to the risks involved in investing in high-yield securities, an investment in the fund should be considered speculative.

Distressed and Defaulted Securities Risk. Investments in the securities of financially distressed issuers involve substantial risks, including the risk of default. 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.

Issuer Risk. The value of a security may decline for a number of reasons that directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services, as well as the historical and prospective earnings of the issuer and the value of its assets. A change in the financial condition of a single issuer may affect securities markets as a whole. These risks can apply to the common shares issued by the fund and to the issuers of securities and other instruments in which the fund invests.

Reinvestment Risk. 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. A decline in income received by the fund from its investments is likely to have a negative effect on dividend levels and the market price, NAV and/or overall return of the common shares.

Call Risk. Call risk refers to the possibility that an issuer may exercise its right to redeem a fixed income security earlier than expected. Issuers may call outstanding securities prior to their maturity for a number of reasons. If an issuer calls a security in which the fund has invested, the fund may not recoup the full amount of its initial investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.

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. companies. 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. 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. Also, nationalization, expropriation or confiscatory taxation, currency blockage, political changes or diplomatic developments could adversely affect the fund’s investments in a foreign country. The fund may face potential risks associated with the United Kingdom’s departure from the European Union (“EU”). The departure may result in substantial volatility in financial and foreign exchange markets and a sustained weakness in the British pound, the euro and other currencies, which may impact fund returns. It may also destabilize some or all of the other EU member countries and/or the Eurozone. These developments could result in losses to the fund, as there may be negative effects on the value of the fund’s investments and/or on the fund’s ability to enter into certain transactions or value certain investments, and these developments may make it more difficult for the fund to exit certain investments at an advantageous time or price. The fund may invest in securities and instruments that are economically tied to Russia. Investments in Russia are particularly subject to the risk that economic sanctions may be imposed by the United States and/ or other countries. Such sanctions—which may impact companies in many sectors, including energy, financial services and defense, among others— may negatively impact the fund’s performance and/or ability to achieve its investment objectives.

Emerging Markets Risk. Foreign 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.

U.S. Government Securities Risk. Certain U.S. Government Securities, such as U.S. Treasury bills, notes, bonds, and mortgage-related securities guaranteed by the Government National Mortgage Association, are supported by the full faith and credit of the United States; others, such as those of the Federal Home Loan Banks (“FHLBs”) or the Federal Home Loan Mortgage Corporation (“FHLMC”), are supported by the right of the issuer to borrow from the U.S. Treasury; others, such as those of the Federal National Mortgage Association (“FNMA”), are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations; and still others are supported only by the credit of the agency, instrumentality or corporation. Although legislation has been enacted to support certain government sponsored entities, including the FHLBs, FHLMC and FNMA, there is no assurance that the obligations of such entities will be satisfied in full, or that such obligations will not decrease in value or default.

Convertible Securities Risk. 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. 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.

Contingent Convertible Securities Risk (“CoCos”). The risks of investing in CoCos include, without limit, the risk that interest payments will 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 the fund’s investment becoming further subordinated as a result of conversion from debt to equity, the risk that the principal amount due can be written down to a lesser amount, 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 the fund.

Leverage Risk. The fund’s use of leverage, if any, creates the opportunity for increased common share net income, but also creates special risks for common shareholders. To the extent used, there is no assurance that the fund’s leveraging strategies will be successful. Leverage is a speculative technique that may expose the fund to greater risk and increased costs. The fund’s assets attributable to leverage, if any, will be invested in accordance with the fund’s investment objectives and policies. Interest expense payable by the fund with respect to derivatives and other forms of leverage, and dividends payable with respect to preferred shares outstanding, if any, will generally be based on shorter-term interest rates that would be periodically reset.

Derivatives Risk. The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Derivatives are subject to a number of risks, such as liquidity risk, interest rate risk, market risk, credit risk, leveraging risk, counterparty risk, tax risk and management risk, as well as risks arising from changes in applicable requirements. The fund’s use of derivatives may increase or accelerate the amount of taxes payable by common shareholders. The regulation of the derivatives markets has increased over the past several years, 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.

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.

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 illiquidity risk, counterparty risk and credit risk.

Liquidity Risk. Liquidity risk exists when particular investments are difficult to purchase or sell. Illiquid investments are 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. Illiquid investments may become harder to value, especially in changing markets. The fund’s investments in illiquid securities may reduce the returns of the fund because it may be unable to sell the illiquid investments at an advantageous time or price or possibly require the 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.

Valuation Risk. Certain securities in which the fund invests may be less liquid and more difficult to value than other types of securities. When market quotations or pricing service prices are not readily available or are deemed to be unreliable, the fund values its investments at fair value as determined in good faith pursuant to policies and procedures approved by the Board.

Non-Diversification Risk. The fund is “non-diversified,” which means that the fund may invest a significant portion of its assets in the securities of a smaller number of issuers than a diversified fund. Focusing investments in a small number of issuers increases risk. A fund that invests in a relatively smaller number of issuers is more susceptible to risks associated with a single economic, political or regulatory occurrence than a diversified fund might be.

Privacy and Data Security Risk. The fund generally does not intend to obtain or hold borrowers’ non-public personal information, and the fund intends to implement procedures designed to prevent the disclosure of borrowers’ non-public personal information to the fund. However, service providers to the fund or its direct or indirect fully-owned subsidiaries, including their custodians and the platforms acting as loan servicers for the fund or its direct or indirect fully-owned subsidiaries, may obtain, hold or process such information. The fund cannot guarantee the security of non-public personal information in the possession of such a service provider and cannot guarantee that service providers have been and will continue to comply with the Gramm-Leach Bliley Act (“GLBA”), other data security and privacy laws and any other related regulatory requirements.

Certain Other Risks and Considerations. An investment in the fund is subject to other risks and considerations, including Inflation-Indexed Security Risk, Senior Debt Risk, Real Estate Risk, Segregation and Coverage Risk, Equity Securities and Related Market Risk, Preferred Securities Risk, Confidential Information Access Risk, Other Investment Companies Risk, Private Placements and Restricted Securities Risk, Inflation/Deflation Risk, Regulatory Changes Risk, Regulatory Risk – London Interbank Offered Rate, Regulatory Risk – Commodity Pool Operator, Tax Risk, Market Disruptions Risk, Potential Conflicts of Interest Risk – Allocation of Investment Opportunities, Repurchase Agreements Risk, Zero-Coupon Bond, Step-Ups and Payment-in-Kind Securities Risk, Portfolio Turnover Risk, Subsidiary Risk, Operational Risk, Cybersecurity Risk, Structured Investments Risk, Collateralized Loan Obligations Risk, the risk of certain affiliations with the underwriting syndicate, risks associated with the anti-takeover provisions of the Declaration and risks relating to the fund’s distribution rates.

As with any stock, the price of the fund’s common shares will fluctuate with market conditions and other factors. Shares of closed-end management investment companies frequently trade at a price that is less than (a “discount”) or more than (a “premium”) from their net asset value. If the fund’s shares trade at a premium to net asset value, 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 net asset value thereafter. Additionally, the fund's distribution rate may be affected by numerous factors, including changes in realized and projected market returns, 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 the fund distribution rate at a future time.

The information relating to the Fund presented on this website has not been audited and may be calculated and presented differently from similar information (such as representations of portfolio composition, assets and leverage and other data) included in the Fund's shareholder reports and other sources.
Closed-end funds, unlike open-end funds, are not continuously offered. After the initial public offering, shares are sold on the open market through a stock exchange. Closed-end funds may be leveraged and carry various risks depending upon the underlying assets owned by a fund. Investment policies, management fees and other matters of interest to prospective investors may be found in each closed-end fund annual and semi-annual report. For additional information, please contact your investment professional. For additional information, contact your financial advisor or call 1-844-337-4626.
This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO is a trademark of Allianz Asset Management of America L.P. in the United States and throughout the world.
PIMCO Investments LLC, 1633 Broadway, New York, NY 10019, is a company of PIMCO.