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UNII Report Prospectus

Corporate & Income Strategy Fund

PCN

Updated April 17, 2024

UNII Report Prospectus

Objective

Seeks high current income, with a secondary objective of capital preservation and appreciation.

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Overview

Important Notice: Annual shareholder meeting time and location update. Please view the press release regarding the update.



PRESS RELEASES

Fund Overview

Using a dynamic asset allocation strategy that focuses on duration management, credit quality analysis, risk management techniques, and broad diversification among issuers, industries and sectors, the multi-sector fund seeks high current income, with a secondary objective of capital preservation and appreciation.

Under normal market conditions, the Fund seeks to achieve its investment objective by investing at least 80% of its net assets plus borrowings for investment purposes in a combination of corporate debt obligations of varying maturities, other corporate income-producing securities, and income-producing securities of 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.

The fund may invest a maximum of 25% of its total assets in non-U.S.-dollar-denominated securities. The fund will normally maintain an average portfolio duration of between zero and eight years.

The portfolio manager attempts to identify investments that provide high current income through fundamental research, driven by independent credit analysis and proprietary analytical tools, and also uses a variety of techniques designed to manage risk and minimize exposure to issues that are more likely to default or otherwise depreciate in value over time.

ASSET CLASS
  • Fixed Income
  • Corporate
CUSIP

72200U100

IPO Market Price

$15.00

IPO NAV

$14.30

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Measuring Closed-End Fund Performance

Net Asset Value (NAV) versus Market Price

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Managers

Alfred T. Murata

Portfolio Manager, Mortgage Credit

View Profile for Alfred T. Murata

Mohit Mittal

CIO Core Strategies

View Profile for Mohit Mittal

Giang Bui

Portfolio Manager, Securitized Debt

View Profile for Giang Bui

Distributions

Historical Prices & Distributions

Daily Distribution Rates

as of 04/17/2024
Daily NAV Distribution Rate 11.86%
Daily Market Price Distribution Rate 10.52%

Distribution Rates

as of 03/31/2024
NAV Distribution Rate 11.58%
Market Price Distribution Rate 9.66%

Distributions

Latest Distribution ($ / Share) as of 04/10/2024 $0.112500
Distribution (YTD)1 as of 04/10/2024 $0.450000

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 Fee 0.81%
Total Expense Ratio (excluding interest expense)2 0.89%
Total Expense Ratio (including interest expense)2 2.76%

disclosures

2Expense ratios are calculated as a percentage of common net assets, and are as of the most recent annual report. 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 04/17/2024

NAV $11.38 Market Price $12.83
Daily Change $0.03 Daily Change $0.11
One Day Return 0.26% One Day Return 0.86%
Premium / Discount 12.74%

All data as of

All data as of

Click here to view the Price and Performance for all Closed-End Funds

Calendar Year Returns %

All data as of

Fund Pricing

(Since Inception) All data as of 04/17/2024

High/Low Ranges - One Year

All data as of 04/17/2024

High/Low NAV $11.68/$10.58
High/Low Market Price $14.24/$10.75

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 %

Wirelines 5.60
Healthcare 5.58
Technology 5.58
Automotive 4.25
Banks 4.22
Aerospace/Defense 3.03
Media Noncable: Broadcasting 3.02
Consumer Products 2.58
Supermarkets & Distributors 2.18
Electric Utility 2.10

Maturity %

0-1 yrs 17.99
1-3 yrs 13.99
3-5 yrs 22.37
5-10 yrs 26.22
10-20 yrs 12.24
20+ yrs 7.19
Effective Maturity (yrs) 6.94

Duration in Years

Total Leveraged-Adjusted Effective Durations (yrs.) 3.38

Sector Allocation %3

MV % DWE %
US Government Related4 5.14 33.00
Mortgage 13.26 20.41
Non-Agency Mortgage 12.36 18.92
Agency MBS 0.90 1.49
CMBS 3.47 1.63
High Yield Credit 33.91 17.05
Non-USD Developed 10.46 -1.93
Emerging Markets5 7.81 6.66
Invest. Grade Credit 7.45 16.38
Municipal 2.00 5.96
Other6 8.92 1.52
Net Other Short Duration Instruments7 7.57 -0.68

Top Countries %8

MV% DWE%
United States 78.79 81.85
United Kingdom 3.29 1.95
Spain 2.42 0.62
Italy 2.36 2.83
Luxembourg 2.08 2.26

disclosures

3For 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.
4May include nominal and inflation-protected Treasuries, Treasury futures and options, agencies, FDIC-guaranteed and government-guaranteed corporate securities, and interest rate swaps.
5Short 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.
6May include convertibles, preferreds, and yankee bonds.
7Net 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.
8By 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 03/31/2024 unless otherwise stated

Click here for ARPS Max Rate

Assets (in millions)

Common Net Assets $644
Outstanding Preferred Shares $13
Total Managed Assets9 $771

Leverage

% of Total Managed Assets % of Common Net Assets
Total Effective Leverage 16.45 19.70
Preferred Shares10 1.68 2.01
Reverse Repurchase Agreements11 13.85 16.58
Floating Rate Notes Issued12 0.00 0.00
Credit Default Swaps13 0.92 1.11

Preferred Share Leverage Statistics

Shares Outstanding 519
Share Price $25,000
Average Monthly Dividend Rate14 8.51%

disclosures

9Total 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.
10Preferred Shares (%) consists of Preferred Shares divided by Total Managed Assets.
11Reverse Repurchase Agreements (%) consists of Reverse Repurchase Agreements divided by Total Managed Assets.
12Floating 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.
13Credit 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.
14The Average Monthly Dividend Rate is the average of weekly Preferred Shares dividend rates for a one month period across all applicable preferred share series for the fund. Dividends are accumulated daily at an annual rate that is typically re-set every seven days through auction procedures (or through default procedures in the event of failed auctions).
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:

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. Mortgage and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk, and their value may fluctuate in response to the market’s perception of issuer creditworthiness; while generally supported by some form of government or private guarantee there is no assurance that private guarantors will meet their obligations. High-yield, lower-rated, securities involve greater risk than higher-rated securities; portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not. Investing in foreign denominated and/or domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. The use of leverage may cause a portfolio to liquidate positions when it may not be advantageous to do so to satisfy its obligations or to meet segregation requirements. Leverage, including borrowing, may cause a portfolio to be more volatile than if the portfolio had not been leveraged. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested.
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 LLC in the United States and throughout the world.
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