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: 811-07816
PCM Fund Inc.
(Exact name of registrant as specified in charter)
1633 Broadway, New York, NY 10019
(Address of principal executive offices)
Trent W. Walker
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
Registrants telephone number, including area code: (844) 337-4626
Date of fiscal year end: June 30
Date of reporting period: December 31, 2018
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, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. | Reports to Shareholders. |
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
Semiannual Report
December 31, 2018
PCM Fund, Inc. | PCM | NYSE
PIMCO Global StocksPLUS® & Income Fund | PGP | NYSE
PIMCO Income Opportunity Fund | PKO | NYSE
PIMCO Strategic Income Fund, Inc. | RCS | NYSE
PIMCO Dynamic Credit and Mortgage Income Fund | PCI | NYSE
PIMCO Dynamic Income Fund | PDI | NYSE
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds website, pimco.com/literature, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by visiting pimco.com/edelivery or by contacting your financial intermediary, such as a broker-dealer or bank.
Beginning January 1, 2019, you may elect to receive all future reports in paper free of charge. If you own these shares through a financial intermediary, such as a broker-dealer or bank, you may contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can inform the Fund that you wish to continue receiving paper copies of your shareholder reports by calling 844.337.4626. Your election to receive reports in paper will apply to all funds held with the fund complex if you invest directly with the Fund or to all funds held in your account if you invest through a financial intermediary, such as a broker-dealer or bank.
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Fund | Fund Summary |
Schedule of Investments |
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(1) | Consolidated Schedule of Investments |
Letter from the Chair of the Board & President
Dear Shareholder,
Following this letter is the PIMCO Closed-End Funds Semiannual Report, which covers the six-month reporting period ended December 31, 2018. On the subsequent pages you will find specific details regarding investment results and discussion of the factors that most affected performance during the reporting period.
For the six-month reporting period ended December 31, 2018
The U.S. economy continued to expand during the reporting period. Looking back, U.S. gross domestic product (GDP) grew at an annual pace of 4.2% during the second quarter of 2018, the strongest since the third quarter of 2014. GDP then expanded at an annual pace of 3.4% during the third quarter of the year. Finally, the Commerce Departments initial reading for fourth-quarter 2018 GDP has been delayed due to the partial government shutdown.
The Federal Reserve (the Fed) continued to normalize monetary policy during the reporting period. After raising rates in March and June, the Fed again moved rates higher at its September and December 2018 meetings. The Feds December rate hike pushed the federal funds rate to a range between 2.25% and 2.50%. In addition, the Fed continued to reduce its balance sheet during the reporting period.
Economic activity outside the U.S. initially accelerated during the reporting period, but moderated as it progressed. Against this backdrop, the European Central Bank (the ECB) and the Bank of Japan largely maintained their highly accommodative monetary policies, while other central banks took a more hawkish stance. The Bank of England raised rates at its meeting in August 2018 and the Bank of Canada raised rates twice during the reporting period. Meanwhile, the ECB ended its quantitative easing program in December 2018, but indicated that it does not expect to raise interest rates at least through the summer of 2019.
The U.S. Treasury yield curve flattened during the reporting period as longer-term rates fell more than short-term rates. The yield on the benchmark 10-year U.S. Treasury note was 2.69% at the end of the reporting period, down from 2.85% on June 30, 2018. U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index, returned 1.96% over the six months ended December 31, 2018. Meanwhile, the Bloomberg Barclays U.S. Aggregate Bond Index, a widely used index of U.S. investment grade bonds, returned 1.65% over the period. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, generated weaker results versus the broad U.S. market. The ICE BofAML U.S. High Yield Index returned -2.34% over the reporting period, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global, returned 0.65% over the reporting period. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned 0.25% over the period.
Global equities produced poor results during the reporting period. U.S. equities moved sharply higher over the first half of the period. We believe this rally was driven by a number of factors, including corporate profits that often exceeded expectations. However, U.S. equities fell sharply during the fourth quarter of 2018. We believe this was triggered by a number of factors, including signs of moderating global growth, concerns over future Fed rate hikes, the ongoing trade dispute between the U.S. and China and the partial U.S. government shutdown. All told, U.S. equities, as represented by the S&P 500 Index, returned -6.85% during the reporting period. Elsewhere, emerging market equities, as measured by the MSCI Emerging Markets Index, returned -8.49% during the reporting period, whereas global equities, as represented by the MSCI World Index, returned -9.10%. Elsewhere, Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned -9.45% during the reporting period and European equities, as represented by the MSCI Europe Index (in EUR), returned -10.14%.
Commodity prices fluctuated and generally declined during the reporting period. When the reporting period began, West Texas crude oil was approximately $70 a barrel, but by the end it was roughly $45 a barrel. This was driven in part by increased supply and declining global demand. Elsewhere, gold prices rose, whereas copper prices declined during the reporting period.
2 | PIMCO CLOSED-END FUNDS |
Finally, during the reporting period the foreign exchange markets experienced periods of volatility, due in part to signs of decoupling economic growth and central bank policies, along with a number of geopolitical events. The U.S. dollar produced mixed results against other major currencies during the reporting period. For example, the U.S. dollar appreciated 1.92% and 3.53% versus the euro and the British pound, respectively, whereas the U.S. dollar depreciated 0.97% versus the yen during the reporting period.
Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work diligently to meet your broad investment needs. For any questions regarding your PIMCO Closed-End Funds investments, please contact your financial adviser, or call the Funds shareholder servicing agent at (844) 33-PIMCO. We also invite you to visit our website at pimco.com to learn more about our global viewpoints.
Sincerely,
Deborah A. DeCotis | Peter G. Strelow | |
Chair of the Board of Trustees | President |
Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.
SEMIANNUAL REPORT | DECEMBER 31, 2018 | 3 |
Important Information About the Funds
4 | PIMCO CLOSED-END FUNDS |
SEMIANNUAL REPORT | DECEMBER 31, 2018 | 5 |
Important Information About the Funds (Cont.)
6 | PIMCO CLOSED-END FUNDS |
SEMIANNUAL REPORT | DECEMBER 31, 2018 | 7 |
Important Information About the Funds (Cont.)
8 | PIMCO CLOSED-END FUNDS |
SEMIANNUAL REPORT | DECEMBER 31, 2018 | 9 |
Important Information About the Funds (Cont.)
1 | Hereinafter, the terms Trustee or Trustees used herein shall refer to a Director or Directors of applicable Funds. |
10 | PIMCO CLOSED-END FUNDS |
Symbol on NYSE - PCM |
Average Annual Total Return(1) for the period ended December 31, 2018 | ||||||||||||||||||||
6 Month* | 1 Year | 5 Year | 10 Year | Commencement of Operations (09/02/93) |
||||||||||||||||
Market Price | (7.22)% | (4.03)% | 7.95% | 17.41% | 8.75% | |||||||||||||||
NAV | 0.56% | 4.65% | 8.21% | 18.04% | 9.16% |
All Fund returns are net of fees and expenses.
* Cumulative return
(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. 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 Funds dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the purchase or sale of Fund shares. |
(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 distributions tax character will be made on Form 1099 DIV sent to shareholders each January. |
(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). |
Investment Objective and Strategy Overview
PCM Fund, Inc.s primary investment objective is to achieve high current income. Capital gains from the disposition of investments are a secondary objective of the Fund.
Fund Insights at NAV
The following affected performance during the reporting period:
» | Exposure to the intermediate portion of the U.S. yield curve contributed to absolute performance, as intermediate rates declined. |
» | Exposure to the U.S. dollar contributed to absolute performance, as the dollar appreciated against most major currencies. |
» | Exposure to commercial mortgage-backed securities contributed to absolute performance, as the asset class generated positive performance. |
» | Exposure to high yield corporate bonds detracted from absolute performance, as the asset class posted negative total returns. |
» | Exposure to non-agency residential mortgage-backed securities detracted from absolute performance, due to falling prices and security selection. |
» | Exposure to special situation corporate debt detracted from performance amid the broader weakness in corporate credit. |
SEMIANNUAL REPORT | DECEMBER 31, 2018 | 11 |
PIMCO Global StocksPLUS® & Income Fund
Symbol on NYSE - PGP |
Average Annual Total Return(1) for the period ended December 31, 2018 | ||||||||||||||||||||
6 Month* | 1 Year | 5 Year | 10 Year | Commencement of Operations (05/31/05) |
||||||||||||||||
Market Price | (17.53)% | (15.08)% | (2.41)% | 14.84% | 8.27% | |||||||||||||||
NAV | (8.97)% | (8.95)% | 6.74% | 19.27% | 11.18% |
All Fund returns are net of fees and expenses.
* Cumulative return
(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. 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 Funds dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the purchase or sale of Fund shares. |
(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 distributions tax character will be made on Form 1099 DIV sent to shareholders each January. |
(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). |
Investment Objective and Strategy Overview
PIMCO Global StocksPLUS® & Income Funds primary investment objective is to seek total return comprised of current income, current gains and long-term capital appreciation.
Fund Insights at NAV
The following affected performance during the reporting period:
» | The Funds exposure to equity index derivatives linked to the S&P 500 Index detracted from absolute returns, as the S&P 500 Index returned -6.85%. |
» | The Funds exposure to equity index derivatives linked to the MSCI EAFE Index detracted from absolute returns, as the MSCI EAFE Index returned -11.35%. |
» | A defensive options strategy involving written calls and purchased puts on the S&P 500 Index contributed to absolute performance, as the S&P 500 Index returned -6.85% during the period. |
» | U.S. duration strategies contributed to returns, driven by exposure to intermediate rates where yield decreased. |
» | Holdings of non-agency mortgages contributed to absolute returns, as this sector generated positive returns. |
» | Holdings of high yield corporate debt detracted from returns. |
» | Exposure to Argentina external bonds detracted from absolute returns, as spreads widened. |
12 | PIMCO CLOSED-END FUNDS |
Symbol on NYSE - PKO |
Average Annual Total Return(1) for the period ended December 31, 2018 | ||||||||||||||||||||
6 Month* | 1 Year | 5 Year | 10 Year | Commencement of Operations (11/30/07) |
||||||||||||||||
Market Price | (1.24)% | 8.80% | 9.79% | 16.65% | 12.02% | |||||||||||||||
NAV | 0.65% | 3.30% | 8.49% | 15.85% | 11.81% |
All Fund returns are net of fees and expenses.
* Cumulative return
(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. 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 Funds dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the purchase or sale of Fund shares. |
(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 distributions tax character will be made on Form 1099 DIV sent to shareholders each January. |
(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). |
Investment Objective and Strategy Overview
PIMCO Income Opportunity Funds investment objective is to seek current income as a primary focus and also capital appreciation.
Fund Insights at NAV
The following affected performance during the reporting period:
» | Exposure to the intermediate portion of the U.S. yield curve contributed to absolute performance, as intermediate rates declined. |
» | Exposure to the U.S. dollar contributed to absolute performance, as the dollar appreciated against most major currencies. |
» | Exposure to commercial mortgage-backed securities contributed to absolute performance, as the asset class generated positive performance. |
» | Exposure to high yield corporate bonds detracted from absolute performance, as the asset class posted negative total returns. |
» | Exposure to non-agency residential mortgage-backed securities detracted from absolute performance, due to falling prices and security selection. |
» | Exposure to special situation corporate debt detracted from performance amid the broader weakness in corporate credit. |
SEMIANNUAL REPORT | DECEMBER 31, 2018 | 13 |
PIMCO Strategic Income Fund, Inc.
Symbol on NYSE - RCS |
Average Annual Total Return(1) for the period ended December 31, 2018 | ||||||||||||||||||||
6 Month* | 1 Year | 5 Year | 10 Year | Commencement of Operations (02/24/94) |
||||||||||||||||
Market Price | 4.74% | 15.91% | 10.64% | 13.58% | 9.44% | |||||||||||||||
NAV | 0.60% | 0.93% | 6.35% | 13.15% | 8.68% |
All Fund returns are net of fees and expenses.
* Cumulative return
(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. 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 Funds dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the purchase or sale of Fund shares. |
(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 distributions tax character will be made on Form 1099 DIV sent to shareholders each January. |
(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). |
Investment Objective and Strategy Overview
The primary investment objective of PIMCO Strategic Income Fund, Inc. is to generate a level of income that is higher than that generated by high quality, intermediate-term U.S. debt securities. The Fund also seeks capital appreciation to the extent consistent with this objective.
Fund Insights at NAV
The following affected performance during the reporting period:
» | Exposure to the intermediate portion of the U.S. yield curve contributed to absolute performance, as intermediate rates declined. |
» | Exposure to the U.S. dollar contributed to absolute performance, as the dollar appreciated against most major currencies. |
» | Exposure to commercial mortgage-backed securities contributed to absolute performance, as the asset class generated positive performance. |
» | Exposure to high yield corporate bonds detracted from absolute performance, as the asset class posted negative total returns. |
» | Exposure to non-agency residential mortgage-backed securities detracted from absolute performance, due to falling prices and security selection. |
» | Exposure to investment grade corporate bonds detracted from absolute performance, as the asset class underperformed like-duration Treasuries. |
14 | PIMCO CLOSED-END FUNDS |
PIMCO Dynamic Credit and Mortgage Income Fund
Symbol on NYSE - PCI |
Average Annual Total Return(1) for the period ended December 31, 2018 | ||||||||||||||||
6 Month* | 1 Year | 5 Year | Commencement of Operations (01/31/13) |
|||||||||||||
Market Price | (5.23)% | 3.87% | 10.03% | 7.90% | ||||||||||||
NAV | (0.09)% | 4.89% | 9.16% | 9.27% |
All Fund returns are net of fees and expenses.
* Cumulative return
(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. 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 Funds dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the purchase or sale of Fund shares. |
(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 distributions tax character will be made on Form 1099 DIV sent to shareholders each January. |
(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). |
Investment Objective and Strategy Overview
PIMCO Dynamic Credit and Mortgage Income Funds primary investment objective is to seek current income and capital appreciation as a secondary objective.
Fund Insights at NAV
The following affected performance during the reporting period:
» | Exposure to the intermediate portion of the U.S. yield curve contributed to absolute performance, as intermediate rates declined. |
» | Exposure to the U.S. dollar contributed to absolute performance, as the dollar appreciated against most major currencies. |
» | Exposure to commercial mortgage-backed securities contributed to absolute performance, as the asset class generated positive performance. |
» | Exposure to high yield corporate bonds detracted from absolute performance, as the asset class posted negative total returns. |
» | Exposure to non-agency residential mortgage-backed securities detracted from absolute performance, due to falling prices and security selection. |
» | Exposure to investment grade corporate bonds detracted from absolute performance, as the asset class underperformed like-duration Treasuries. |
SEMIANNUAL REPORT | DECEMBER 31, 2018 | 15 |
Symbol on NYSE - PDI |
Average Annual Total Return(1) for the period ended December 31, 2018 | ||||||||||||||||
6 Month* | 1 Year | 5 Year | Commencement of Operations (05/30/12) |
|||||||||||||
Market Price | (2.64)% | 7.97% | 14.10% | 16.07% | ||||||||||||
NAV | 0.29% | 5.79% | 11.82% | 15.90% |
All Fund returns are net of fees and expenses.
* Cumulative return
(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. 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 Funds dividend reinvestment plan. Performance does not reflect any brokerage commissions in connection with the purchase or sale of Fund shares. |
(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 distributions tax character will be made on Form 1099 DIV sent to shareholders each January. |
(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). |
Investment Objective and Strategy Overview
PIMCO Dynamic Income Funds primary investment objective is to seek current income, and capital appreciation is a secondary objective.
Fund Insights at NAV
The following affected performance during the reporting period:
» | Exposure to the intermediate portion of the U.S. yield curve contributed to absolute performance, as intermediate rates declined. |
» | Exposure to the U.S. dollar contributed to absolute performance, as the dollar appreciated against most major currencies. |
» | Exposure to commercial mortgage-backed securities contributed to absolute performance, as the asset class generated positive performance. |
» | Exposure to high yield corporate bonds detracted from absolute performance, as the asset class posted negative total returns. |
» | Exposure to non-agency residential mortgage-backed securities detracted from absolute performance, due to falling prices and security selection. |
» | Exposure to investment grade corporate bonds detracted from absolute performance, as the asset class underperformed like-duration Treasuries. |
16 | PIMCO CLOSED-END FUNDS |
(THIS PAGE INTENTIONALLY LEFT BLANK)
SEMIANNUAL REPORT | DECEMBER 31, 2018 | 17 |
Investment Operations | Less Distributions(b) | |||||||||||||||||||||||||||||||
Selected Per Share Data for the Year or Period Ended^: | Net Asset Value Beginning of Year or Period |
Net Investment Income (loss)(a) |
Net Realized/ Unrealized Gain (Loss) |
Total | From Net Investment Income |
From Net Realized Capital Gains |
Tax Basis Return of Capital |
Total | ||||||||||||||||||||||||
PCM Fund, Inc. |
||||||||||||||||||||||||||||||||
07/01/2018 - 12/31/2018+ |
$ | 10.23 | $ | 0.38 | $ | (0.32 | ) | $ | 0.06 | $ | (0.48 | ) | $ | 0.00 | $ | 0.00 | $ | (0.48 | ) | |||||||||||||
06/30/2018 |
10.15 | 0.88 | 0.18 | 1.06 | (0.98 | ) | 0.00 | 0.00 | (0.98 | ) | ||||||||||||||||||||||
06/30/2017 |
9.71 | 0.98 | 0.92 | 1.90 | (1.46 | ) | 0.00 | 0.00 | (1.46 | ) | ||||||||||||||||||||||
06/30/2016 |
10.68 | 1.22 | (1.23 | ) | (0.01 | ) | (0.96 | ) | 0.00 | 0.00 | (0.96 | ) | ||||||||||||||||||||
01/01/2015 - 06/30/2015(e) |
10.72 | 0.44 | 0.00 | 0.44 | (0.48 | ) | 0.00 | 0.00 | (0.48 | )(i) | ||||||||||||||||||||||
12/31/2014 |
11.17 | 0.94 | (0.34 | ) | 0.60 | (1.05 | ) | 0.00 | 0.00 | (1.05 | ) | |||||||||||||||||||||
12/31/2013 |
11.35 | 1.12 | (0.20 | ) | 0.92 | (1.10 | ) | 0.00 | 0.00 | (1.10 | ) | |||||||||||||||||||||
PIMCO Global StocksPLUS® & Income Fund |
||||||||||||||||||||||||||||||||
07/01/2018 - 12/31/2018+ |
$ | 10.50 | $ | 0.57 | $ | (1.45 | ) | $ | (0.88 | ) | $ | (0.73 | ) | $ | 0.00 | $ | 0.00 | $ | (0.73 | ) | ||||||||||||
06/30/2018 |
11.18 | 1.09 | (0.16 | ) | 0.93 | (1.43 | ) | 0.00 | (0.18 | ) | (1.61 | ) | ||||||||||||||||||||
06/30/2017 |
9.76 | 1.15 | 2.14 | 3.29 | (1.67 | ) | 0.00 | (0.20 | ) | (1.87 | ) | |||||||||||||||||||||
06/30/2016 |
12.88 | 1.15 | (2.07 | ) | (0.92 | ) | (2.02 | ) | 0.00 | (0.18 | ) | (2.20 | ) | |||||||||||||||||||
04/01/2015 - 06/30/2015(f) |
12.82 | 0.34 | 0.27 | 0.61 | (0.55 | ) | 0.00 | 0.00 | (0.55 | )(i) | ||||||||||||||||||||||
03/31/2015 |
14.72 | 1.15 | (0.85 | ) | 0.30 | (2.20 | ) | 0.00 | 0.00 | (2.20 | ) | |||||||||||||||||||||
03/31/2014 |
14.32 | 1.39 | 1.21 | 2.60 | (2.20 | ) | 0.00 | 0.00 | (2.20 | ) | ||||||||||||||||||||||
PIMCO Income Opportunity Fund |
||||||||||||||||||||||||||||||||
07/01/2018 - 12/31/2018+ |
$ | 25.06 | $ | 1.01 | $ | (0.89 | ) | $ | 0.12 | $ | (1.51 | ) | $ | 0.00 | $ | 0.00 | $ | (1.51 | ) | |||||||||||||
06/30/2018 |
25.17 | 2.18 | (0.01 | ) | 2.17 | (2.28 | ) | 0.00 | 0.00 | (2.28 | ) | |||||||||||||||||||||
06/30/2017 |
22.59 | 2.28 | 2.92 | 5.20 | (2.56 | ) | 0.00 | (0.06 | ) | (2.62 | ) | |||||||||||||||||||||
06/30/2016 |
25.94 | 2.33 | (2.89 | ) | (0.56 | ) | (2.28 | ) | (0.51 | ) | 0.00 | (2.79 | ) | |||||||||||||||||||
11/01/2014 - 06/30/2015(g) |
28.38 | 1.54 | (0.86 | ) | 0.68 | (2.34 | ) | (0.77 | ) | (0.01 | ) | (3.12 | )(i) | |||||||||||||||||||
10/31/2014 |
28.67 | 2.71 | (0.12 | ) | 2.59 | (2.88 | ) | 0.00 | 0.00 | (2.88 | ) | |||||||||||||||||||||
10/31/2013 |
27.86 | 2.87 | 0.77 | 3.64 | (2.83 | ) | 0.00 | 0.00 | (2.83 | ) | ||||||||||||||||||||||
PIMCO Strategic Income Fund, Inc. |
||||||||||||||||||||||||||||||||
07/01/2018 - 12/31/2018+ |
$ | 7.32 | $ | 0.36 | $ | (0.32 | ) | $ | 0.04 | $ | (0.43 | ) | $ | 0.00 | $ | 0.00 | $ | (0.43 | ) | |||||||||||||
06/30/2018 |
7.75 | 0.77 | (0.34 | ) | 0.43 | (0.86 | ) | 0.00 | 0.00 | (0.86 | ) | |||||||||||||||||||||
06/30/2017 |
7.89 | 0.70 | 0.08 | 0.78 | (0.80 | ) | 0.00 | (0.12 | ) | (0.92 | ) | |||||||||||||||||||||
06/30/2016 |
8.58 | 0.76 | (0.45 | ) | 0.31 | (1.00 | ) | 0.00 | 0.00 | (1.00 | ) | |||||||||||||||||||||
02/01/2015 - 06/30/2015(h) |
8.57 | 0.30 | 0.11 | 0.41 | (0.40 | ) | 0.00 | 0.00 | (0.40 | )(i) | ||||||||||||||||||||||
01/31/2015 |
9.24 | 0.90 | (0.55 | ) | 0.35 | (1.02 | ) | 0.00 | 0.00 | (1.02 | ) | |||||||||||||||||||||
01/31/2014 |
9.66 | 0.99 | (0.30 | ) | 0.69 | (1.11 | ) | 0.00 | 0.00 | (1.11 | ) | |||||||||||||||||||||
PIMCO Dynamic Credit and Mortgage Income Fund (Consolidated) |
||||||||||||||||||||||||||||||||
07/01/2018 - 12/31/2018+ |
$ | 23.74 | $ | 1.01 | $ | (1.02 | ) | $ | (0.01 | ) | $ | (1.33 | ) | $ | 0.00 | $ | 0.00 | $ | (1.33 | ) | ||||||||||||
06/30/2018 |
22.91 | 1.95 | 0.85 | 2.80 | (1.97 | ) | 0.00 | 0.00 | (1.97 | ) | ||||||||||||||||||||||
06/30/2017 |
20.43 | 1.62 | 3.46 | 5.08 | (2.60 | ) | 0.00 | 0.00 | (2.60 | ) | ||||||||||||||||||||||
06/30/2016 |
23.00 | 2.01 | (2.40 | ) | (0.39 | ) | (2.18 | ) | 0.00 | 0.00 | (2.18 | ) | ||||||||||||||||||||
01/01/2015 - 06/30/2015(e) |
22.83 | 0.76 | 0.35 | 1.11 | (0.94 | ) | 0.00 | 0.00 | (0.94 | )(i) | ||||||||||||||||||||||
12/31/2014 |
24.04 | 1.79 | (0.53 | ) | 1.26 | (2.47 | ) | 0.00 | 0.00 | (2.47 | ) | |||||||||||||||||||||
01/31/2013 - 12/31/2013 |
23.88 | 1.33 | 0.76 | 2.09 | (1.68 | ) | (0.24 | ) | 0.00 | (1.92 | ) | |||||||||||||||||||||
PIMCO Dynamic Income Fund (Consolidated) |
||||||||||||||||||||||||||||||||
07/01/2018 - 12/31/2018+ |
$ | 28.98 | $ | 1.34 | $ | (1.34 | ) | $ | 0.00 | $ | (1.82 | ) | $ | 0.00 | $ | 0.00 | $ | (1.82 | ) | |||||||||||||
06/30/2018 |
28.32 | 2.95 | 0.18 | 3.13 | (2.65 | ) | 0.00 | 0.00 | (2.65 | ) | ||||||||||||||||||||||
06/30/2017 |
26.56 | 2.60 | 3.18 | 5.78 | (4.10 | ) | 0.00 | 0.00 | (4.10 | ) | ||||||||||||||||||||||
06/30/2016 |
31.38 | 3.87 | (3.45 | ) | 0.42 | (4.25 | ) | (0.99 | ) | 0.00 | (5.24 | ) | ||||||||||||||||||||
04/01/2015 - 06/30/2015(f) |
30.74 | 0.80 | 0.47 | 1.27 | (0.63 | ) | 0.00 | 0.00 | (0.63 | )(i) | ||||||||||||||||||||||
03/31/2015 |
32.11 | 3.25 | (0.49 | ) | 2.76 | (4.13 | ) | 0.00 | 0.00 | (4.13 | ) | |||||||||||||||||||||
03/31/2014 |
30.69 | 3.70 | 1.24 | 4.94 | (3.29 | ) | (0.23 | ) | 0.00 | (3.52 | ) |
^ | A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%. |
+ | Unaudited |
* | Annualized |
(a) | Per share amounts based on average number of shares outstanding during the year or period. |
(b) | 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, DistributionsCommon Shares, in the Notes to Financial Statements for more information. |
(c) | Total investment return is calculated assuming a purchase of a share at the market price on the first day and a sale of a share at the market price on the last day of each year 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. |
(d) | 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. |
(e) | Fiscal year end changed from December 31st to June 30th. |
(f) | Fiscal year end changed from March 31st to June 30th. |
(g) | Fiscal year end changed from October 31st to June 30th. |
(h) | Fiscal year end changed from January 31st to June 30th. |
(i) | Total distributions for the period ended June 30, 2015 may be lower than prior fiscal years due to fiscal year end changes resulting in a reduction of the amount of days in the period ended June 30, 2015. |
18 | PIMCO CLOSED-END FUNDS | See Accompanying Notes |
Common Share | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||||||||||||||||||
Increase resulting from at-the-market offering |
Offering Cost Charged to Paid in Capital |
Net Asset Value End of Year or Period |
Market Price End of Year or Period |
Total Return(c) |
Net Assets End of Year or Period (000s) |
Expenses(d) | Expenses Excluding Waivers(d) |
Expenses Excluding Interest Expense(d) |
Expenses Excluding Interest Expense and Waivers(d) |
Net Investment Income (Loss) |
Portfolio Turnover Rate |
|||||||||||||||||||||||||||||||||||
$ | N/A | $ | N/A | $ | 9.81 | $ | 10.15 | (7.22 | )% | $ | 113,711 | 3.23 | %* | 3.23 | %* | 1.40 | %* | 1.40 | %* | 7.46 | %* | 6 | % | |||||||||||||||||||||||
N/A | N/A | 10.23 | 11.45 | 11.48 | 118,512 | 3.06 | 3.06 | 1.43 | 1.43 | 8.55 | 9 | |||||||||||||||||||||||||||||||||||
N/A | N/A | 10.15 | 11.23 | 33.80 | 117,402 | 3.05 | 3.05 | 1.54 | 1.54 | 9.81 | 13 | |||||||||||||||||||||||||||||||||||
N/A | N/A | 9.71 | 9.72 | 6.91 | 112,099 | 2.69 | 2.69 | 1.58 | 1.58 | 12.25 | 12 | |||||||||||||||||||||||||||||||||||
N/A | N/A | 10.68 | 10.05 | (1.28 | ) | 123,235 | 2.26 | * | 2.26 | * | 1.54 | * | 1.54 | * | 8.32 | * | 20 | |||||||||||||||||||||||||||||
N/A | N/A | 10.72 | 10.65 | 0.34 | 123,633 | 1.89 | 1.89 | 1.40 | 1.40 | 8.38 | 11 | |||||||||||||||||||||||||||||||||||
N/A | N/A | 11.17 | 11.65 | 6.49 | 128,672 | 2.05 | 2.05 | 1.52 | 1.52 | 9.75 | 6 | |||||||||||||||||||||||||||||||||||
$ | N/A | $ | N/A | $ | 8.89 | $ | 11.68 | (17.53 | )% | $ | 96,242 | 2.31 | %* | 2.31 | %* | 1.45 | %* | 1.45 | %* | 11.22 | %* | 206 | % | |||||||||||||||||||||||
N/A | N/A | 10.50 | 14.98 | (8.96 | ) | 113,204 | 2.36 | 2.36 | 1.48 | 1.48 | 9.84 | 63 | ||||||||||||||||||||||||||||||||||
N/A | N/A | 11.18 | 18.40 | 5.06 | 119,538 | 3.20 | 3.20 | 1.88 | 1.88 | 11.09 | 25 | |||||||||||||||||||||||||||||||||||
N/A | N/A | 9.76 | 19.53 | 31.38 | 103,627 | 2.75 | 2.75 | 1.82 | 1.82 | 10.56 | 26 | |||||||||||||||||||||||||||||||||||
N/A | N/A | 12.88 | 16.92 | (21.82 | ) | 135,468 | 2.34 | * | 2.34 | * | 1.72 | * | 1.72 | * | 10.35 | * | 3 | |||||||||||||||||||||||||||||
N/A | N/A | 12.82 | 22.27 | 4.05 | 134,594 | 2.30 | 2.30 | 1.78 | 1.78 | 8.29 | 92 | |||||||||||||||||||||||||||||||||||
N/A | N/A | 14.72 | 23.67 | 19.44 | 153,393 | 1.94 | 1.94 | 1.67 | 1.67 | 9.62 | 197 | |||||||||||||||||||||||||||||||||||
$ | 0.05 | $ | 0.00 | $ | 23.72 | $ | 25.39 | (1.24 | )% | $ | 370,699 | 2.85 | %* | 2.85 | %* | 1.54 | %* | 1.54 | %* | 8.11 | %* | 11 | % | |||||||||||||||||||||||
N/A | N/A | 25.06 | 27.31 | 11.13 | 379,378 | 2.99 | 2.99 | 1.64 | 1.64 | 8.58 | 17 | |||||||||||||||||||||||||||||||||||
N/A | N/A | 25.17 | 26.85 | 30.30 | 378,706 | 2.94 | 2.94 | 1.72 | 1.72 | 9.57 | 28 | |||||||||||||||||||||||||||||||||||
N/A | N/A | 22.59 | 23.00 | 7.87 | 338,292 | 2.63 | 2.63 | 1.73 | 1.73 | 9.99 | 16 | |||||||||||||||||||||||||||||||||||
N/A | N/A | 25.94 | 24.20 | 0.22 | 388,353 | 2.43 | * | 2.43 | * | 1.79 | * | 1.79 | * | 8.93 | * | 14 | ||||||||||||||||||||||||||||||
N/A | N/A | 28.38 | 27.26 | 4.39 | 424,632 | 2.01 | 2.01 | 1.65 | 1.65 | 9.44 | 175 | |||||||||||||||||||||||||||||||||||
N/A | N/A | 28.67 | 28.90 | 6.81 | 426,561 | 1.93 | 1.93 | 1.66 | 1.66 | 10.03 | 65 | |||||||||||||||||||||||||||||||||||
$ | N/A | $ | N/A | $ | 6.93 | $ | 9.68 | 4.74 | % | $ | 299,621 | 3.06 | %* | 3.06 | %* | 0.97 | %* | 0.97 | %* | 9.95 | %* | 10 | % | |||||||||||||||||||||||
N/A | N/A | 7.32 | 9.68 | 4.59 | 314,540 | 1.85 | 1.85 | 0.97 | 0.97 | 10.12 | 5 | |||||||||||||||||||||||||||||||||||
N/A | N/A | 7.75 | 10.19 | 17.12 | 329,673 | 1.52 | 1.52 | 0.97 | 0.97 | 8.94 | 8 | |||||||||||||||||||||||||||||||||||
N/A | N/A | 7.89 | 9.61 | 24.14 | 332,051 | 1.27 | 1.27 | 0.96 | 0.96 | 9.43 | 39 | |||||||||||||||||||||||||||||||||||
N/A | N/A | 8.58 | 8.69 | (5.81 | ) | 357,692 | 1.16 | * | 1.16 | * | 0.96 | * | 0.96 | * | 8.58 | * | 17 | |||||||||||||||||||||||||||||
N/A | N/A | 8.57 | 9.65 | 5.92 | 355,942 | 1.18 | 1.18 | 0.98 | 0.98 | 10.01 | 90 | |||||||||||||||||||||||||||||||||||
N/A | N/A | 9.24 | 10.12 | (4.58 | ) | 379,762 | 1.39 | 1.39 | 1.00 | 1.00 | 10.48 | 208 | ||||||||||||||||||||||||||||||||||
$ | N/A | $ | N/A | $ | 22.40 | $ | 21.05 | (5.23 | )% | $ | 3,077,538 | 4.49 | %* | 4.49 | %* | 2.08 | %* | 2.08 | %* | 8.49 | %* | 8 | % | |||||||||||||||||||||||
N/A | N/A | 23.74 | 23.57 | 15.03 | 3,257,195 | 4.20 | 4.20 | 2.10 | 2.10 | 8.30 | 22 | |||||||||||||||||||||||||||||||||||
N/A | N/A | 22.91 | 22.32 | 32.10 | 3,144,154 | 3.80 | 3.80 | 2.09 | 2.09 | 7.41 | 32 | |||||||||||||||||||||||||||||||||||
N/A | N/A | 20.43 | 19.13 | 6.69 | 2,804,003 | 3.20 | 3.20 | 2.03 | 2.03 | 9.63 | 26 | |||||||||||||||||||||||||||||||||||
N/A | N/A | 23.00 | 20.18 | 2.23 | 3,155,689 | 2.63 | * | 2.63 | * | 1.97 | * | 1.97 | * | 6.71 | * | 31 | ||||||||||||||||||||||||||||||
N/A | (0.00 | ) | 22.83 | 20.65 | 2.68 | 3,132,146 | 2.36 | 2.36 | 1.91 | 1.91 | 7.29 | 35 | ||||||||||||||||||||||||||||||||||
N/A | (0.01 | ) | 24.04 | 22.48 | (2.79 | ) | 3,298,673 | 1.52 | * | 1.52 | * | 1.42 | * | 1.42 | * | 6.06 | * | 76 | ||||||||||||||||||||||||||||
$ | 0.10 | $ | 0.00 | $ | 27.26 | $ | 29.18 | (2.64 | )% | $ | 1,536,711 | 3.80 | %* | 3.80 | %* | 1.85 | %* | 1.85 | %* | 9.29 | %* | 6 | % | |||||||||||||||||||||||
0.18 | (0.00 | ) | 28.98 | 31.87 | 15.54 | 1,575,523 | 4.07 | 4.07 | 2.01 | 2.01 | 10.26 | 9 | ||||||||||||||||||||||||||||||||||
0.08 | 0.00 | 28.32 | 30.18 | 27.07 | 1,372,674 | 4.08 | 4.08 | 2.14 | 2.14 | 9.58 | 20 | |||||||||||||||||||||||||||||||||||
N/A | N/A | 26.56 | 27.57 | 13.75 | 1,222,499 | 3.60 | 3.60 | 2.12 | 2.12 | 13.67 | 13 | |||||||||||||||||||||||||||||||||||
N/A | N/A | 31.38 | 29.21 | 2.87 | 1,426,891 | 2.83 | * | 2.83 | * | 2.01 | * | 2.01 | * | 10.23 | * | 5 | ||||||||||||||||||||||||||||||
N/A | N/A | 30.74 | 29.00 | 9.04 | 1,397,987 | 3.12 | 3.12 | 2.12 | 2.12 | 9.98 | 10 | |||||||||||||||||||||||||||||||||||
N/A | N/A | 32.11 | 30.32 | 9.62 | 1,458,961 | 3.15 | 3.15 | 2.17 | 2.17 | 11.90 | 18 |
SEMIANNUAL REPORT | DECEMBER 31, 2018 | 19 |
Statements of Assets and Liabilities
December 31, 2018 (Unaudited)
(Amounts in thousands, except per share amounts) | PCM Fund, Inc. |
PIMCO Global StocksPLUS® & Income Fund |
PIMCO Income Opportunity Fund |
PIMCO Strategic Income Fund, Inc. |
||||||||||||
Assets: |
||||||||||||||||
Investments, at value |
||||||||||||||||
Investments in securities* |
$ | 174,140 | $ | 183,727 | $ | 525,515 | $ | 1,216,167 | ||||||||
Financial Derivative Instruments |
||||||||||||||||
Exchange-traded or centrally cleared |
247 | 1,043 | 818 | 25 | ||||||||||||
Over the counter |
0 | 1,345 | 264 | 149 | ||||||||||||
Cash |
0 | 5 | 80 | 0 | ||||||||||||
Deposits with counterparty |
2,508 | 3,802 | 7,916 | 14,137 | ||||||||||||
Foreign currency, at value |
0 | 48 | 408 | 732 | ||||||||||||
Receivable for investments sold |
2,313 | 537 | 7,905 | 2,048 | ||||||||||||
Receivable for mortgage dollar rolls |
0 | 0 | 0 | 370,939 | ||||||||||||
Receivable for TBA investments sold |
0 | 43,692 | 0 | 0 | ||||||||||||
Receivable for Fund shares sold |
0 | 0 | 1,041 | 0 | ||||||||||||
Interest and/or dividends receivable |
942 | 1,601 | 4,920 | 4,166 | ||||||||||||
Other assets |
11 | 1 | 116 | 2 | ||||||||||||
Total Assets |
180,161 | 235,801 | 548,983 | 1,608,365 | ||||||||||||
Liabilities: |
||||||||||||||||
Borrowings & Other Financing Transactions |
||||||||||||||||
Payable for reverse repurchase agreements |
$ | 61,313 | $ | 39,441 | $ | 162,210 | $ | 196,488 | ||||||||
Payable for sale-buyback transactions |
0 | 0 | 0 | 56,304 | ||||||||||||
Payable for mortgage dollar rolls |
0 | 0 | 0 | 370,939 | ||||||||||||
Financial Derivative Instruments |
||||||||||||||||
Exchange-traded or centrally cleared |
135 | 2,294 | 512 | 1,214 | ||||||||||||
Over the counter |
1,139 | 7,302 | 1,969 | 2,401 | ||||||||||||
Payable for investments purchased |
2,689 | 3,102 | 9,581 | 980 | ||||||||||||
Payable for TBA investments purchased |
0 | 84,152 | 0 | 665,557 | ||||||||||||
Payable for unfunded loan commitments |
50 | 71 | 0 | 0 | ||||||||||||
Deposits from counterparty |
65 | 1,752 | 579 | 11,230 | ||||||||||||
Distributions payable to common shareholders |
927 | 1,320 | 2,958 | 3,112 | ||||||||||||
Overdraft due to custodian |
0 | 0 | 0 | 50 | ||||||||||||
Accrued management fees |
129 | 122 | 468 | 234 | ||||||||||||
Other liabilities |
3 | 3 | 7 | 235 | ||||||||||||
Total Liabilities |
66,450 | 139,559 | 178,284 | 1,308,744 | ||||||||||||
Net Assets |
$ | 113,711 | $ | 96,242 | $ | 370,699 | $ | 299,621 | ||||||||
Net Asset Consist of: |
||||||||||||||||
Shares: |
||||||||||||||||
Par value^ |
$ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Paid in capital in excess of par |
110,906 | 136,411 | 359,468 | 359,291 | ||||||||||||
Distributable earnings (accumulated loss) |
2,805 | (40,169 | ) | 11,231 | (59,670 | ) | ||||||||||
Net Assets Applicable to Common Shareholders |
$ | 113,711 | $ | 96,242 | $ | 370,699 | $ | 299,621 | ||||||||
Common Shares Outstanding |
11,588 | 10,823 | 15,628 | 43,221 | ||||||||||||
Net Asset Value Per Common Share |
$ | 9.81 | $ | 8.89 | $ | 23.72 | $ | 6.93 | ||||||||
Cost of investments in securities |
$ | 169,009 | $ | 187,732 | $ | 515,088 | $ | 1,236,839 | ||||||||
Cost of foreign currency held |
$ | 0 | $ | 48 | $ | 431 | $ | 726 | ||||||||
Cost or premiums of financial derivative instruments, net |
$ | (584 | ) | $ | 5,867 | $ | (8,972 | ) | $ | 8,188 | ||||||
* Includes repurchase agreements of: |
$ | 6,923 | $ | 10,711 | $ | 13,971 | $ | 1,698 |
| A zero balance may reflect actual amounts rounding to less than one thousand. |
^ | ($0.001 per share), ($0.00001 per share), ($0.00001 per share), ($0.00001 per share) |
20 | PIMCO CLOSED-END FUNDS | See Accompanying Notes |
Consolidated Statements of Assets and Liabilities
December 31, 2018 (Unaudited)
(Amounts in thousands, except per share amounts) | PIMCO Dynamic Credit and Mortgage Income Fund |
PIMCO Dynamic Income Fund |
||||||
Assets: |
||||||||
Investments, at value |
||||||||
Investments in securities* |
$ | 5,479,170 | $ | 2,531,499 | ||||
Investments in Affiliates |
10,091 | 0 | ||||||
Financial Derivative Instruments |
||||||||
Exchange-traded or centrally cleared |
6,230 | 2,669 | ||||||
Over the counter |
3,018 | 971 | ||||||
Cash |
290 | 0 | ||||||
Deposits with counterparty |
111,939 | 28,158 | ||||||
Foreign currency, at value |
0 | 1,894 | ||||||
Receivable for investments sold |
67,665 | 2,986 | ||||||
Interest and/or dividends receivable |
43,303 | 18,549 | ||||||
Other assets |
8 | 185 | ||||||
Total Assets |
5,721,714 | 2,586,911 | ||||||
Liabilities: |
||||||||
Borrowings & Other Financing Transactions |
||||||||
Payable for reverse repurchase agreements |
$ | 2,568,264 | $ | 1,006,534 | ||||
Financial Derivative Instruments |
||||||||
Exchange-traded or centrally cleared |
4,338 | 2,378 | ||||||
Over the counter |
22,133 | 13,976 | ||||||
Payable for investments purchased |
13,763 | 10,889 | ||||||
Payable for unfunded loan commitments |
1,294 | 0 | ||||||
Deposits from counterparty |
5,156 | 1,492 | ||||||
Distributions payable to common shareholders |
22,537 | 12,419 | ||||||
Overdraft due to custodian |
1,230 | 67 | ||||||
Accrued management fees |
5,396 | 2,417 | ||||||
Other liabilities |
65 | 28 | ||||||
Total Liabilities |
2,644,176 | 1,050,200 | ||||||
Net Assets |
$ | 3,077,538 | $ | 1,536,711 | ||||
Net Asset Consist of: |
||||||||
Shares: |
||||||||
Par value^ |
$ | 1 | $ | 1 | ||||
Paid in capital in excess of par |
3,277,820 | 1,415,426 | ||||||
Distributable earnings (accumulated loss) |
(200,283 | ) | 121,284 | |||||
Net Assets Applicable to Common Shareholders |
$ | 3,077,538 | $ | 1,536,711 | ||||
Common Shares Outstanding |
137,367 | 56,384 | ||||||
Net Asset Value Per Common Share |
$ | 22.40 | $ | 27.26 | ||||
Cost of investments in securities |
$ | 5,465,654 | $ | 2,390,096 | ||||
Cost of investments in Affiliates |
$ | 7,639 | $ | 0 | ||||
Cost of foreign currency held |
$ | 0 | $ | 1,897 | ||||
Cost or premiums of financial derivative instruments, net |
$ | (7,792 | ) | $ | (35,120 | ) | ||
* Includes repurchase agreements of: |
$ | 71,865 | $ | 59,388 |
| A zero balance may reflect actual amounts rounding to less than one thousand. |
^ | ($0.00001 per share) |
SEMIANNUAL REPORT | DECEMBER 31, 2018 | 21 |
Six Months Ended December 31, 2018 (Unaudited) | ||||||||||||||||
(Amounts in thousands) | PCM Fund, Inc. |
PIMCO Global StocksPLUS® & Income Fund |
PIMCO Income Opportunity Fund |
PIMCO Strategic Income Fund, Inc. |
||||||||||||
Investment Income: |
||||||||||||||||
Interest, net of foreign taxes* |
$ | 5,910 | $ | 6,919 | $ | 19,489 | $ | 19,883 | ||||||||
Dividends |
399 | 520 | 1,577 | 218 | ||||||||||||
Total Income |
6,309 | 7,439 | 21,066 | 20,101 | ||||||||||||
Expenses: |
||||||||||||||||
Management fees |
811 | 786 | 2,905 | 1,476 | ||||||||||||
Trustee fees and related expenses |
6 | 7 | 21 | 16 | ||||||||||||
Interest expense |
1,082 | 472 | 2,511 | 3,226 | ||||||||||||
Miscellaneous expense |
11 | 4 | 34 | 3 | ||||||||||||
Total Expenses |
1,910 | 1,269 | 5,471 | 4,721 | ||||||||||||
Net Investment Income (Loss) |
4,399 | 6,170 | 15,595 | 15,380 | ||||||||||||
Net Realized Gain (Loss): |
||||||||||||||||
Investments in securities |
(12 | ) | 1,298 | 8,045 | (6,390 | ) | ||||||||||
Exchange-traded or centrally cleared financial derivative instruments |
1,184 | 4,589 | (47 | ) | 150 | |||||||||||
Over the counter financial derivative instruments |
194 | 1,817 | 2,897 | 2,554 | ||||||||||||
Foreign currency |
0 | (119 | ) | (79 | ) | (181 | ) | |||||||||
Net Realized Gain (Loss) |
1,366 | 7,585 | 10,816 | (3,867 | ) | |||||||||||
Net Change in Unrealized Appreciation (Depreciation): |
||||||||||||||||
Investments in securities |
(5,111 | ) | (7,887 | ) | (27,773 | ) | (1,381 | ) | ||||||||
Exchange-traded or centrally cleared financial derivative instruments |
221 | (8,103 | ) | 3,307 | (7,747 | ) | ||||||||||
Over the counter financial derivative instruments |
(205 | ) | (7,367 | ) | (338 | ) | (910 | ) | ||||||||
Foreign currency assets and liabilities |
(3 | ) | (53 | ) | 18 | 55 | ||||||||||
Net Change in Unrealized Appreciation (Depreciation) |
(5,098 | ) | (23,410 | ) | (24,786 | ) | (9,983 | ) | ||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | 667 | $ | (9,655 | ) | $ | 1,625 | $ | 1,530 | |||||||
* Foreign tax withholdings |
$ | 0 | $ | 0 | $ | 0 | $ | 1 |
| A zero balance may reflect actual amounts rounding to less than one thousand. |
22 | PIMCO CLOSED-END FUNDS | See Accompanying Notes |
Consolidated Statements of Operations
Six Months Ended December 31, 2018 (Unaudited) | ||||||||
(Amounts in thousands) | PIMCO Dynamic Credit and Mortgage Income Fund |
PIMCO Dynamic Income Fund |
||||||
Investment Income: |
||||||||
Interest, net of foreign taxes* |
$ | 200,045 | $ | 104,201 | ||||
Dividends |
11,020 | 1,583 | ||||||
Total Income |
211,065 | 105,784 | ||||||
Expenses: |
||||||||
Management fees |
33,607 | 14,837 | ||||||
Trustee fees and related expenses |