N-CSRS

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: 811-21734

PIMCO Global StocksPlus® & Income Fund

(Exact name of registrant as specified in charter)

1633 Broadway, New York, NY 10019

(Address of principal executive offices)

William G. Galipeau

Treasurer (Principal Financial & Accounting Officer)

650 Newport Center Drive

Newport Beach, CA 92660

(Name and address of agent for service)

Copies to:

David C. Sullivan

Ropes & Gray LLP

Prudential Tower

800 Boylston Street

Boston, MA 02199

Registrant’s telephone number, including area code: (844) 337-4626

Date of fiscal year end: June 30

Date of reporting period: December 31, 2016

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, 2016

PCM Fund, Inc.

PIMCO Global StocksPLUS^® & Income Fund

PIMCO Income Opportunity Fund

PIMCO Strategic Income Fund, Inc.

PIMCO Dynamic Credit and Mortgage Income Fund

(formerly PIMCO Dynamic Credit Income Fund)

PIMCO Dynamic Income Fund

Table of Contents

			Page
Letter from the Chairman of the Board & President				2
Important Information About the Funds				4
Financial Highlights				16
Statements of Assets and Liabilities				18
Consolidated Statements of Assets and Liabilities				19
Statements of Operations				20
Consolidated Statements of Operations				21
Statements of Changes in Net Assets				22
Consolidated Statements of Changes in Net Assets				24
Statements of Cash Flows				25
Consolidated Statements of Cash Flows				26
Notes to Financial Statements				90
Glossary				112
Investment Strategy Updates				113
Fund	Fund Summary		Schedule of Investments
PCM Fund, Inc.		10		27
PIMCO Global StocksPLUS® & Income Fund		11		35
PIMCO Income Opportunity Fund		12		45
PIMCO Strategic Income Fund, Inc.		13		56
PIMCO Dynamic Credit and Mortgage Income Fund(1)		14		65
PIMCO Dynamic Income Fund(1)		15		79

⁽¹⁾  Consolidated Schedule of Investments

Letter from the Chairman of the Board & President

Dear Shareholder,

The global financial markets generated mixed results during the reporting period. Investor sentiment fluctuated as investors reacted to incoming economic data, shifting monetary policy, volatile commodity prices and numerous geopolitical issues.

For the six-month reporting period ended December 31, 2016

The U.S. economy continued to expand during the reporting period, although the pace was relatively modest overall. Looking back, U.S. gross domestic product (“GDP”), which represents the value of goods and services produced in the country, the broadest measure of economic activity and the principal indicator of economic performance, expanded at a 0.9% annual pace during the second quarter of 2016. GDP grew at a 3.5% annual pace during the third quarter — the strongest reading in two years. Finally, the Commerce Department’s initial reading — released after the reporting period had ended — showed that fourth quarter 2016 GDP grew at an annual pace of 1.9%.

At its meeting in December 2015, the Federal Reserve (“Fed”) took its initial step toward normalizing monetary policy. In particular, the Fed raised interest rates from a range between 0% and 0.25% to a range between 0.25% and 0.50%. During its first seven meetings in 2016, the Fed remained on hold as it monitored incoming economic data, as well as several geopolitical events. Then, in a well-telegraphed move, the Fed again raised interest rates in December 2016 to a range between 0.50% and 0.75%. In its official statement following the Fed’s December 2016 meeting it said, “The Committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run. However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.”

Economic activity outside the U.S. was generally tepid during the reporting period. In the eurozone, growth was modest and inflation remained lower than the European Central Bank’s (“ECB”) target. As a result, the ECB maintained its highly accommodative monetary policy and extended the duration of its bond buying program through December 2017. In the aftermath of the United Kingdom’s decision to leave the European Union (“Brexit”), the Bank of England lowered rates in October 2016 from 0.50% to 0.25% — an all-time low. Elsewhere, uneven growth in Japan prompted the Bank of Japan to push the rate on current accounts that commercial banks hold to negative territory.

After weakness earlier in 2016, commodity prices generally stabilized and moved higher during the six months ended December 31, 2016. Crude oil rose from approximately $48 a barrel when the reporting period began to roughly $54 at the end of December 2016. Finally, foreign exchange markets fluctuated given economic data, decoupling central bank policy, Brexit and the surprise outcome from the U.S. November elections that propelled the U.S. dollar higher.

Outlook

PIMCO’s baseline view is for the aging U.S. economic expansion to continue during the remainder of 2017. PIMCO foresees U.S. GDP growth of 2%–2.5% in 2017, twice the annualized growth rate from the fourth quarter of 2015 through the second quarter of 2016, but below the 3.5% rate during the third quarter of 2016. PIMCO believes business investment will likely snap back, helped by higher energy prices and, eventually, more clarity on corporate tax reform. In PIMCO’s view, consumer spending will be supported by a further decline in unemployment, rising wages and expectations of personal income tax cuts to be enacted at the end of 2017. Meanwhile PIMCO expects headline Consumer Price Index (“CPI”) inflation to increase and to converge with core inflation above 2%, with the Fed raising interest rates two or three times during 2017 (with risks to the upside).

Overseas, PIMCO’s baseline view is for eurozone growth to be in a 1%–1.5% range as political uncertainty remains elevated ahead of crucial elections in France, Germany, the Netherlands and, potentially, in Italy. While PIMCO believes that headline inflation will rise above 1%, core inflation should make little headway toward the European

2 PIMCO CLOSED-END FUNDS

Central Bank’s “below but close to 2%” objective. In the UK, PIMCO’s baseline view is for growth to moderate into a 0.75%–1.5% range, reflecting fairly robust momentum so far, but also the ongoing uncertainty over the impact of Brexit. PIMCO’s baseline view in Japan is that fiscal stimulus and recent yen weakening will propel GDP growth into a 0.75%–1.25% range in 2017. However, PIMCO believes inflation will remain subdued and significantly below the Bank of Japan’s 2% target. Finally, for China, PIMCO’s baseline view is that the public sector credit bubble and its private sector capital outflows will likely remain under control and growth will slow into a 6%–6.5% range as policymakers prioritize financial stability over economic stimulus ahead of the 19th National Party Congress in the fourth quarter of 2017.

In the following pages of this PIMCO Closed-End Funds Semiannual Report, please find specific details regarding investment performance and a discussion of factors that most affected the Funds’ performance over the six months ended December 31, 2016.

Thank you for investing with us. We value your trust and will continue to work diligently to meet your investment needs. If you have questions regarding any of your PIMCO Closed-End Funds investments, please contact your financial advisor or call the Funds’ shareholder servicing agent at (844) 33-PIMCO or (844) 337-4626. We also invite you to visit our website at www.pimco.com to learn more about our views.

Sincerely,

Hans W. Kertess	Peter G. Strelow
Chairman of the Board	President

SEMIANNUAL REPORT DECEMBER 31, 2016 3

Important Information About the Funds

We believe that bond funds have an important role to play in a well- diversified investment portfolio. It is important to note, however, that in an environment where interest rates trend upward, rising rates would negatively impact the performance of most bond funds, and fixed- income securities held by a Fund are likely to decrease in value. A number of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions, etc.). Accordingly, changes in interest rates can be sudden, and there is no guarantee that Fund Management will anticipate such movement. As of the date of this report, interest rates in the U.S. are at or near historically low levels. As such, bond funds may currently face an increased exposure to the risks associated with rising interest rates. This is especially true since the Federal Reserve Board has concluded its quantitative easing program and, at its meetings on December 16, 2015 and December 14, 2016, raised interest rates for the first time since 2006. Further, while the U.S. bond market has steadily grown over the past three decades, dealer inventories of corporate bonds have remained relatively stagnant. As a result, there has been a significant reduction in the ability of dealers to “make markets” in corporate bonds. All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets, which could result in increased losses to a Fund. Bond funds and individual bonds with a longer duration (a measure of the sensitivity of a security’s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorter durations. In addition, in the current low interest rate environment, the market price of the Funds’ common shares may be particularly sensitive to changes in interest rates or the perception that there will be a change in interest rates.

The use of derivatives may subject the Funds to greater volatility than investments in traditional securities. The Funds may use derivative instruments for hedging purposes or as part of an investment strategy. Use of these instruments may involve certain costs and risks such as liquidity risk, interest rate risk, market risk, call risk, credit risk, management risk and the risk that a Fund could not close out a position when it would be most advantageous to do so. Certain derivative transactions may have a leveraging effect on a Fund. For example, a small investment in a derivative instrument may have a significant impact on a Fund’s exposure to interest rates, currency exchange rates or other investments. As a result, a relatively small price movement in a derivative instrument may cause an immediate and substantial loss or gain, which translates into heightened volatility in a Fund’s net asset value (“NAV”). A Fund may engage in such transactions regardless of whether the Fund owns the asset, instrument or components of the index underlying a derivative instrument. A Fund may invest a significant portion of its assets in these types of instruments. If it does, a Fund’s investment exposure could far exceed

the value of its portfolio securities and its investment performance could be primarily dependent upon securities it does not directly own. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially limit or impact a Fund’s ability to invest in derivatives, limit a Fund’s ability to employ certain strategies that use derivatives and adversely affect the value or performance of derivatives and a Fund. For instance, in December 2015, the SEC proposed new regulations applicable to mutual fund’s use of derivatives and related instruments. If adopted as proposed, these regulations could significantly limit or impact a fund’s ability to invest in derivatives and other instruments, limit a fund’s ability to employ certain strategies that use derivatives and adversely affect fund’s performance, efficiency in implementing its strategy, liquidity and ability to pursue its investment objectives.

PIMCO Global StocksPLUS^® & Income Fund’s (“PGP”) monthly distributions are expected to include, among other possible sources, interest income from its debt portfolio and payments and premiums (characterized as capital for financial accounting purposes and as ordinary income for tax purposes) generated by certain types of interest rate derivatives.

Strategies involving interest rate derivatives may attempt to capitalize on differences between short-term and long-term interest rates as part of the PGP’s duration and yield curve active management strategies. For instance, in the event that long-term interest rates are higher than short-term interest rates, the Fund may elect to pay a floating short- term interest rate and to receive a long-term fixed interest rate for a stipulated period of time, thereby generating payments as a function of the difference between current short-term interest rates and long-term interest rates, so long as the floating short-term interest rate (which may rise) is lower than the fixed long-term interest rate.

PGP and other Funds may also enter into opposite sides of multiple interest rate swaps or other derivatives with respect to the same underlying reference instrument (e.g., a 10-year U.S. treasury) that have different effective dates with respect to interest accrual time periods for the principal purpose of generating distributable gains (characterized as ordinary income for tax purposes) and that are not part of the Fund’s duration or yield curve management strategies (“paired swap transactions”). In a paired swap transaction, a Fund would generally enter into one or more interest rate swap agreements whereby the Fund agrees to make regular payments starting at the time the Fund enters into the agreements equal to a floating interest rate in return for payments equal to a fixed interest rate (the “initial leg”). The Fund would also enter into one or more interest rate swap agreements on the same underlying instrument, but take the opposite position (i.e., in this example, the Fund would make regular payments equal to a fixed interest rate in return for receiving payments equal to a

4 PIMCO CLOSED-END FUNDS

floating interest rate) with respect to a contract whereby the payment obligations do not commence until a date following the commencement of the initial leg (the “forward leg”).

A Fund’s income- and gain-generating strategies may generate current income and gains taxable as ordinary income sufficient to support monthly distributions even in situations when the Fund has experienced a decline in net assets due to, for example, adverse changes in the broad U.S. or non-U.S. equity markets or the Fund’s debt investments, or arising from its use of derivatives. For instance, a significant portion of PGP’s monthly distributions may be sourced from paired swap transactions utilized to produce current distributable ordinary income for tax purposes on the initial leg, with a substantial possibility that the Fund will later realize a corresponding capital loss and potential decline in its net asset value with respect to the forward leg (to the extent there are not corresponding offsetting capital gains being generated from other sources). Because some or all of these transactions may generate capital losses without corresponding offsetting capital gains, portions of a Fund’s distributions recognized as ordinary income for tax purposes (such as from paired swap transactions) may be economically similar to a taxable return of capital when considered together with such capital losses.

PGP’s index option strategy, to the extent utilized, seeks to generate payments and premiums from writing options that may offset some or all of the capital losses incurred as a result of paired swaps transactions. However, the Fund may use paired swap transactions to support monthly distributions where the index option strategy does not produce an equivalent amount of offsetting gains, including without limitation when such strategy is not being used to a significant extent. In addition, gains (if any) generated from the index option strategy may be offset by the Fund’s realized capital losses, including any available capital loss carryforwards. PGP currently has significant capital loss carryforwards, some of which will expire at particular dates, and to the extent that the Fund’s capital losses exceed capital gains, the Fund cannot use its capital loss carryforwards to offset capital gains.

The notional exposure of a Fund’s interest rate derivatives may represent a multiple of the Fund’s total net assets. There can be no assurance a Fund’s strategies involving interest rate derivatives will work as intended and such strategies are subject to the risks related to the use of derivatives generally, as discussed above (see also Notes 6 and 7 in the Notes to Financial Statements for further discussion on the use of derivative instruments and certain of the risks associated therewith).

A Fund’s use of leverage creates the opportunity for increased income for the Fund’s common shareholders, but also creates special risks. Leverage is a speculative technique that may expose a Fund to greater risk and increased costs. If shorter-term interest rates rise relative to the

rate of return on a Fund’s portfolio, the interest and other costs to the Fund of leverage could exceed the rate of return on the debt obligations and other investments held by the Fund, thereby reducing return to the Fund’s common shareholders. In addition, fees and expenses of any form of leverage used by a Fund will be borne entirely by its common shareholders (and not by preferred shareholders, if any) and will reduce the investment return of the Fund’s common shares. There can be no assurance that a Fund’s use of leverage will result in a higher yield on its common shares, and it may result in losses. Leverage creates several major types of risks for a Fund’s common shareholders, including: (1) the likelihood of greater volatility of net asset value and market price of the Fund’s common shares, and of the investment return to the Fund’s common shareholders, than a comparable portfolio without leverage; (2) the possibility either that the Fund’s common share dividends will fall if the interest and other costs of leverage rise, or that dividends paid on the Fund’s common shares will fluctuate because such costs vary over time; and (3) the effects of leverage in a declining market or a rising interest rate environment, as leverage is likely to cause a greater decline in the net asset value of the Fund’s common shares than if the Fund were not leveraged and may result in a greater decline in the market value of the Fund’s common shares.

A Fund’s investments in and exposure to foreign securities involve special risks. For example, the value of these investments may decline in response to unfavorable political and legal developments, unreliable or untimely information or economic and financial instability. Foreign securities may experience more rapid and extreme changes in value than investments in securities of U.S. issuers. The securities markets of certain foreign countries are relatively small, with a limited number of companies representing a small number of industries. Issuers of foreign securities are usually not subject to the same degree of regulation as U.S. issuers. Reporting, accounting, auditing and custody standards of foreign countries differ, in some cases significantly, from U.S. standards. Also, nationalization, expropriation or other confiscation, currency blockage, political changes or diplomatic developments could adversely affect a Fund’s investments in foreign securities. In the event of nationalization, expropriation or other confiscation, a Fund could lose its entire investment in foreign securities. Risks associated with investing in foreign securities may be increased when a Fund invests in emerging markets. For example, if a Fund invests in emerging market debt, it may face increased exposure to interest rate, liquidity, volatility, and redemption risk due to the specific economic, political, geographical, or legal background of the emerging market.

Investments in loans are generally subject to risks similar to those of investments in other types of debt obligations, including, among others, credit risk, interest rate risk, variable and floating rate securities risk, and, as applicable, risks associated with mortgage-related

SEMIANNUAL REPORT DECEMBER 31, 2016 5

Important Information About the Funds (Cont.)

securities. In addition, in many cases loans are subject to the risks associated with below-investment grade securities. In the case of a loan participation or assignment, a Fund generally has no right to enforce compliance with the terms of the loan agreement with the borrower. As a result, a Fund may be subject to the credit risk of both the borrower and the lender that is selling the loan agreement. In the event of the insolvency of the lender selling a loan participation, a Fund may be treated as a general creditor of the lender and may not benefit from any set-off between the lender and the borrower. The Funds may be subject to heightened or additional risks and potential liabilities and costs by investing in mezzanine and other subordinated loans or acting as an originator of loans, including those arising under bankruptcy, fraudulent conveyance, equitable subordination, lender liability, environmental and other laws and regulations, and risks and costs associated with debt servicing and taking foreclosure actions associated with the loans. To the extent that a Fund originates a loan, it may be responsible for all or a substantial portion of the expenses associated with initiating the loan, irrespective of whether the loan transaction is ultimately consummated or closed. This may include significant legal and due diligence expenses, which will be indirectly borne by a Fund and its shareholders.

Mortgage-related and other asset-backed securities often involve risks that are different from or more acute than risks associated with other types of debt instruments. Generally, rising interest rates tend to extend the duration of fixed rate mortgage-related securities, making them more sensitive to changes in interest rates. As a result, in a period of rising interest rates, if a Fund holds mortgage-related securities, it may experience 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. This is known as extension risk. Mortgage-backed securities can be highly sensitive to rising interest rates, such that even small movements can cause an investing Fund to lose value. Mortgage-backed securities, and in particular those not backed by a government guarantee, are subject to credit risk. In addition, adjustable and fixed rate mortgage-related securities are subject to prepayment risk. When interest rates decline, borrowers may pay off their mortgages sooner than expected. This can reduce the returns of the Funds because the Funds may have to reinvest that money at the lower prevailing interest rates. The Funds’ investments in other asset-backed securities are subject to risks similar to those associated with mortgage-related securities, 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 securities may be largely dependent upon the cash flows generated by the assets backing the securities, and asset-backed securities may not have the benefit of any security interest in the related assets.

High-yield bonds (commonly referred to as “junk bonds”) typically have a lower credit rating than other bonds. Lower-rated bonds generally involve a greater risk to principal than higher-rated bonds. Further, markets for lower-rated bonds are typically less liquid than for higher rated bonds, and public information is usually less abundant in such markets. Thus, high yield investments increase the chance that a Fund will lose money on its investment. The Funds may also invest in bonds and other instruments that are not rated, but which PIMCO considers to be equivalent to high-yield investments. The Funds may hold defaulted securities that may involve special considerations including bankruptcy proceedings, other regulatory and legal restrictions affecting the Funds’ ability to trade, and the availability of prices from independent pricing services or dealer quotations. Defaulted securities are often illiquid and may not be actively traded. Sale of securities in bankrupt companies at an acceptable price may be difficult and differences compared to the value of the securities used by the Funds could be material.

Variable and floating rate securities generally are less sensitive to interest rate changes but may decline in value if their interest rates do not rise as much, or as quickly, as interest rates in general. Conversely floating rate securities will not generally increase in value if interest rates decline. Inverse floating rate securities may decrease in value if interest rates increase. Inverse floating rate securities may also exhibit greater price volatility than a fixed rate obligation with similar credit quality. When a Fund holds variable or floating rate securities, a decrease (or, in the case of inverse floating rate securities, an increase) in market interest rates will adversely affect the income received from such securities and the NAV of the Funds’ shares.

The global economic crisis brought several small economies in Europe to the brink of bankruptcy and many other economies into recession and weakened the banking and financial sectors of many European countries. For example, the governments of Greece, Spain, Portugal, and the Republic of Ireland have all experienced large public budget deficits, the effects of which are still yet unknown and may slow the overall recovery of the European economies from the global economic crisis. In addition, due to large public deficits, some European countries may be dependent on assistance from other European governments and institutions or other central banks or supranational agencies such as the International Monetary Fund. Assistance may be dependent on a country’s implementation of reforms or reaching a certain level of performance. Failure to reach those objectives or an insufficient level of assistance could result in a deep economic downturn which could significantly affect the value of a Fund’s European investments. It is possible that one or more Economic and Monetary Union of the European Union (“EMU”) member countries could abandon the euro and return to a national currency and/or that the euro will cease to

6 PIMCO CLOSED-END FUNDS

exist as a single currency in its current form. The exit of any country out of the euro may have an extremely destabilizing effect on other eurozone countries and their economies and a negative effect on the global economy as a whole. Such an exit by one country may also increase the possibility that additional countries may exit the euro should they face similar financial difficulties. In June 2016, the United Kingdom approved a referendum to leave the European Union. Significant uncertainty remains in the market regarding the ramifications of that development, and the range and potential implications of possible political, regulatory, economic and market outcomes are difficult to predict.

As the use of technology has become more prevalent in the course of business, the Funds have become potentially more susceptible to operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional cyber events that may cause a Fund to lose proprietary information, suffer data corruption, or lose operational capacity. Cyber security breaches may involve unauthorized access to a Fund’s digital information systems (e.g., through “hacking” or malicious software coding), but may also result from outside attacks such as denial-of-service attacks (i.e., efforts to make network services unavailable to intended users). In addition, cyber security breaches of a Fund’s third party service providers (including but not limited to advisers, sub-advisers, administrators, transfer agents, custodians, distributors and other third parties) or issuers that a Fund invests in can also subject a Fund to many of the same risks associated with direct cyber security breaches. Cyber security failures or breaches may result in financial losses to a Fund and its shareholders. These failures or breaches may also result in disruptions to business operations, potentially resulting in financial losses; interference with a Fund’s ability to calculate its net asset value, process shareholder transactions or otherwise transact business with shareholders; impediments to trading; violations of applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other compensation costs; or additional compliance costs. In addition, substantial costs may be incurred in order to prevent any cyber incidents in the future. Like with operational risk in general, the Funds have established risk management systems designed to reduce the risks associated with cyber security. However, there is no guarantee that such efforts will succeed, especially since the Funds do not directly control the cyber security systems of issuers or third party service providers. The Funds and their shareholders could be negatively impacted as a result.

The Funds may invest in securities and instruments that are economically tied to Russia. Investments in Russia are subject to various risks such as political, economic, legal, market and currency risks. The risks include uncertain political and economic policies, short

term market volatility, poor accounting standards, corruption and crime, an inadequate regulatory system, and unpredictable taxation. 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 Funds’ performance and/or ability to achieve their investment objectives. The Russian securities market is characterized by limited volume of trading, resulting in difficulty in obtaining accurate prices. The Russian securities market, as compared to U.S. markets, has significant price volatility, less liquidity, a smaller market capitalization and a smaller number of traded securities. There may be little publicly available information about issuers. Settlement, clearing and registration of securities transactions are subject to risks because of registration systems that may not be subject to effective government supervision. This may result in significant delays or problems in registering the transfer of securities. Russian securities laws may not recognize foreign nominee accounts held with a custodian bank, and therefore the custodian may be considered the ultimate owner of securities they hold for their clients. Ownership of securities issued by Russian companies is recorded by companies themselves and by registrars instead of through a central registration system. It is possible that the ownership rights of the Funds could be lost through fraud or negligence. While applicable Russian regulations impose liability on registrars for losses resulting from their errors, it may be difficult for the Funds to enforce any rights it may have against the registrar or issuer of the securities in the event of loss of share registration. Adverse currency exchange rates are a risk and there may be a lack of available currency hedging instruments. Investments in Russia may be subject to the risk of nationalization or expropriation of assets. Oil, natural gas, metals, and timber account for a significant portion of Russia’s exports, leaving the country vulnerable to swings in world prices.

The common shares of the Funds trade on the New York Stock Exchange. As with any stock, the price of a Fund’s common shares will fluctuate with market conditions and other factors. If you sell your common shares of a Fund, the price received may be more or less than your original investment. Shares of closed-end management investment companies frequently trade at a discount from their net asset value. The common shares of a Fund may trade at a price that is less than the initial offering price and/or the net asset value of such shares. Further, if a Fund’s shares trade at a price that is more than the initial offering price and/or the net asset value of such shares, including at a substantial premium and/or for an extended period of time, there is no assurance that any such premium will be sustained for any period of time and will not decrease, or that the shares will not trade at a discount to net asset value thereafter.

SEMIANNUAL REPORT DECEMBER 31, 2016 7

Important Information About the Funds (Cont.)

The Funds may be subject to various risks in addition to those described above. Some of these risks may include, but are not limited to, the following: asset allocation risk, credit risk, stressed securities risk, distressed and defaulted securities risk, corporate bond risk, market risk, issuer risk, liquidity risk, equity securities and related market risk, mortgage-related and other asset-backed securities risk, extension risk, prepayment risk, privately issued mortgage-related securities risk, mortgage market/ subprime risk, foreign (non-U.S.) investment risk, emerging markets risk, currency risk, redenomination risk, non- diversification risk, management risk, municipal bond risk, inflation- indexed security risk, senior debt risk, loans, participations and assignments risk, reinvestment risk, real estate risk, U.S. Government securities risk, foreign (non-U.S.) government securities risk, valuation risk, segregation and cover risk, focused investment risk, credit default swaps risk, event-linked securities risk, counterparty risk, preferred securities risk, confidential information access risk, other investment companies risk, private placements risk, inflation/deflation risk, regulatory risk, tax risk, recent economic conditions risk, market disruptions and geopolitical risk, potential conflicts of interest involving allocation of investment opportunities, repurchase agreements risk, securities lending risk, zero-coupon bond and payment-in-kind securities risk, portfolio turnover risk, smaller company risk, short sale risk and convertible securities risk. A description of certain of these risks is available in the Notes to Financial Statements of this Report.

On each Fund Summary page in this Shareholder Report, the Average Annual Total Return table measures performance assuming that all dividend and capital gain distributions were reinvested. Total return is calculated by determining the percentage change in NAV or market price (as applicable) in the specified period. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions. Total return for a period of more than one year represents the average annual total return. Performance at market price will differ from results at NAV. Although market price returns tend to reflect investment results over time, during shorter periods returns at market price can also be influenced by factors such as changing views about a Fund, market conditions, supply and demand for the Fund’s shares, or changes in the Fund’s dividends. Performance shown is net of fees and expenses.

The following table discloses the commencement of operations and diversification status of each Fund:

Fund Name	Commencement of Operations		Diversification Status
PCM Fund, Inc.		09/02/93	Diversified
PIMCO Global StocksPLUS® & Income Fund		05/31/05	Diversified
PIMCO Income Opportunity Fund		11/30/07	Diversified
PIMCO Strategic Income Fund, Inc.		02/24/94	Diversified
PIMCO Dynamic Credit and Mortgage Income Fund		01/31/13	Diversified
PIMCO Dynamic Income Fund		05/30/12	Diversified

An investment in a Fund is not a deposit of a bank and is not guaranteed or insured by the Federal Deposit Insurance Corporation or any other government agency. It is possible to lose money on investments in the Funds.

The Trustees/Directors¹ are responsible generally for overseeing the management of the Funds. The Trustees authorize the Funds to enter into service agreements with the Investment Manager and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Funds. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither a Fund’s original or any subsequent prospectus or Statement of Additional Information (SAI), any press release or shareholder report, any contracts filed as exhibits to a Fund’s registration statement, nor any other communications, disclosure documents or regulatory filings from or on behalf of a Fund creates a contract between or among any shareholder of a Fund, on the one hand, and the Fund, a service provider to the Fund, and/or the Trustees or officers of the Fund, on the other hand. The Trustees (or the Funds and their officers, service providers or other delegates acting under authority of the Trustees) may amend its most recent or use a new prospectus or SAI with respect to a Fund, adopt and disclose new or amended policies and other changes in press releases and shareholder reports and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which a Fund is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to any Fund, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement was specifically disclosed in a Fund’s prospectus, SAI or shareholder report and is otherwise still in effect.

PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940. The Proxy Policy has been adopted by the Funds as the policies and procedures that PIMCO will use when voting proxies on behalf of the Funds. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of each Fund, and information about how each Fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, are available without charge, upon request, by calling the Funds at (844) 33-PIMCO (844-337-4626), on the Funds’ website at www.pimco.com, and on the Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.

¹  Hereinafter, the terms “Trustee” or “Trustees” used herein shall refer to a Director or Directors of applicable Funds.

8 PIMCO CLOSED-END FUNDS

Each Fund files a complete schedule of its portfolio holdings with the SEC for the first and third quarters of its fiscal year on Form N-Q. A copy of each Fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C., and is available without charge, upon request by calling the Funds at (844) 33-PIMCO (844-337-4626) and on the Funds’ website at www.pimco.com.

Updated portfolio holdings information about a Fund will be available at www.pimco.com approximately 15 calendar days after such Fund’s most recent fiscal quarter end, and will remain accessible until such Fund files a Form N-Q or a shareholder report for the period which includes the date of the information. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

SEMIANNUAL REPORT DECEMBER 31, 2016 9

PCM Fund, Inc.

Symbol on NYSE - PCM

Allocation Breakdown as of 12/31/2016^†§

Non-Agency Mortgage-Backed Securities	38.7%
Asset-Backed Securities	37.5%
Corporate Bonds & Notes	16.1%
Short-Term Instruments	3.6%
Bank Loan Obligations	2.3%
Other	1.8%

^†  % of Investments, at value.

^§  Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Fund Information (as of December 31, 2016)⁽¹⁾

Market Price	$10.00
NAV	$9.63
Premium/(Discount) to NAV	3.84%
Market Price Distribution Yield(2)	9.60%
NAV Distribution Yield(2)	9.97%
Total Effective Leverage(3)	46%

Average Annual Total Return(1) for the period ended December 31, 2016
	6 Month*		1 Year		5 Year		10 Year		Commencement of Operations (09/02/93)
Market Price		13.61%		25.71%		9.59%		8.07%		8.61%
NAV		9.50%		13.85%		11.66%		9.98%		9.00%

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. Total return, market price, NAV, market price distribution yield, and NAV distribution yield will fluctuate with changes in market conditions. For performance current to the most recent month-end, visit www.pimco.com or call (844) 33-PIMCO.

⁽²⁾  Distribution yields 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, 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 composition of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be 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’s primary investment objective is to seek 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 impacted performance during the reporting period:

» The Fund’s exposure to non-agency mortgage-backed securities contributed to performance, as the sector had positive returns.

» The Fund’s exposure to high yield industrials contributed to performance, as the sector had positive returns.

» The Fund’s exposure to high yield financials contributed to performance, as the sector had positive returns.

» The Fund’s selection of commercial mortgage-backed securities (CMBS) contributed to performance, as select subordinated issues outperformed the broader CMBS sector.

» The Fund’s U.S. duration exposure detracted from performance, as U.S. interest rates increased.

» The Fund’s selection of high yield utilities issues detracted modestly from performance, as select issuers underperformed the broader high yield utilities sector.

10 PIMCO CLOSED-END FUNDS

PIMCO Global StocksPLUS^® & Income Fund

Symbol on NYSE - PGP

Allocation Breakdown as of 12/31/2016^†§

Non-Agency Mortgage-Backed Securities	37.5%
Corporate Bonds & Notes	36.3%
Short-Term Instruments	13.5%
Asset-Backed Securities	7.8%
U.S. Government Agencies	1.5%
Other	3.4%

^†   % of Investments, at value.

^§  Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Fund Information (as of December 31, 2016)⁽¹⁾

Market Price	$14.07
NAV	$10.11
Premium/(Discount) to NAV	39.17%
Market Price Distribution Yield(2)	12.51%
NAV Distribution Yield(2)	17.41%
Total Effective Leverage(3)	44%

Average Annual Total Return(1) for the period ended December 31, 2016
	6 Month*		1 Year		5 Year		10 Year		Commencement of Operations (05/31/05)
Market Price		(23.67)%		(12.45)%		5.55%		7.96%		9.46%
NAV		14.49%		14.82%		17.43%		10.16%		11.58%

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. Total return, market price, NAV, market price distribution yield, and NAV distribution yield will fluctuate with changes in market conditions. For performance current to the most recent month-end, visit www.pimco.com or call (844) 33-PIMCO.

⁽²⁾  Distribution yields 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, 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 composition of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be 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 Fund’s 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 impacted performance during the reporting period:

» The Fund’s exposure to equity index derivatives linked to the S&P 500 Index contributed to performance, as the S&P 500 Index returned 7.82%.

» The Fund’s exposure to equity index derivatives linked to the MSCI EAFE Index contributed to performance, as the MSCI EAFE Index returned 5.67%.

» The Fund’s exposure to high yield corporate credit contributed to performance, as the Bloomberg Barclays U.S. Corporate High Yield Index returned 7.40%.

» The Fund’s exposure to non-agency mortgage-backed securities contributed to performance. The Markit iBoxx Broad U.S. Non-Agency RMBS USD Index gained 11.66%.

» The Fund’s exposure to U.S. dollar-denominated Brazilian corporate debt contributed to performance, as the JPMorgan Brazil CEMBI returned 9.54%.

» The Fund’s exposure to a defensive equity options strategy on the S&P 500 Index detracted from performance, as the S&P 500 Index returned 7.82%.

» The Fund’s exposure to U.S. duration detracted from performance, as Treasury yields increased.

SEMIANNUAL REPORT DECEMBER 31, 2016 11

PIMCO Income Opportunity Fund

Symbol on NYSE - PKO

Allocation Breakdown as of 12/31/2016^†§

Corporate Bonds & Notes	32.6%
Asset-Backed Securities	28.5%
Non-Agency Mortgage-Backed Securities	26.2%
Short-Term Instruments	4.2%
Convertible Preferred Securities	3.0%
Other	5.5%

^†  % of Investments, at value.

^§  Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Fund Information (as of December 31, 2016)⁽¹⁾

Market Price	$23.16
NAV	$23.30
Premium/(Discount) to NAV	(0.60)%
Market Price Distribution Yield(2)	9.84%
NAV Distribution Yield(2)	9.79%
Total Effective Leverage(3)	43%

Average Annual Total Return(1) for the period ended December 31, 2016
	6 Month*		1 Year		5 Year		Commencement of Operations (11/30/07)
Market Price		7.31%		22.96%		10.50%		11.28%
NAV		9.91%		15.29%		12.37%		11.90%

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. Total return, market price, NAV, market price distribution yield, and NAV distribution yield will fluctuate with changes in market conditions. For performance current to the most recent month-end, visit www.pimco.com or call (844) 33-PIMCO.

⁽²⁾  Distribution yields 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, 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 composition of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be 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 Fund’s investment objective is to seek current income as a primary focus and also capital appreciation.

Fund Insights at NAV

The following impacted performance during the reporting period:

» The Fund’s exposure to non-agency mortgage-backed securities contributed to performance, as the sector had positive returns.

» The Fund’s exposure to high yield corporates contributed to performance, as the sector had positive returns.

» The Fund’s selection of commercial mortgage-backed securities (CMBS) contributed to performance, as select subordinated issues outperformed the broader CMBS sector.

» The Fund’s selection of collateralized loan obligations (CLOs) contributed to performance, as select senior tranches outperformed the broader CLO sector.

» The Fund’s exposure to U.S. dollar-denominated Brazilian corporate debt contributed to performance, as the asset class had positive returns.

» The Fund’s exposure to U.S. dollar-denominated Russian corporate debt contributed to performance, as the asset class had positive returns.

» The Fund’s U.S. duration exposure detracted from performance, as U.S. interest rates increased.

» The Fund’s exposure to the middle of the Australian and U.K. yield curves detracted modestly from performance, as intermediate term interest rates increased in those countries.

12 PIMCO CLOSED-END FUNDS

PIMCO Strategic Income Fund, Inc.

Symbol on NYSE - RCS

Allocation Breakdown as of 12/31/2016^†§

U.S. Government Agencies	59.9%
Non-Agency Mortgage-Backed Securities	14.7%
Corporate Bonds & Notes	8.3%
U.S. Treasury Obligations	6.7%
Asset-Backed Securities	6.1%
Short-Term Instruments	3.3%
Other	1.0%

^†  % of Investments, at value.

^§  Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Fund Information (as of December 31, 2016)⁽¹⁾

Market Price	$8.79
NAV	$7.66
Premium/(Discount) to NAV	14.75%
Market Price Distribution Yield(2)	10.92%
NAV Distribution Yield(2)	12.53%
Total Effective Leverage(3)	28%

Average Annual Total Return(1) for the period ended December 31, 2016
	6 Month*		1 Year		5 Year		10 Year		Commencement of Operations (02/24/94)
Market Price		(3.62)%		9.33%		6.38%		10.44%		8.95%
NAV		3.24%		7.82%		10.25%		10.48%		8.58%

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. Total return, market price, NAV, market price distribution yield, and NAV distribution yield will fluctuate with changes in market conditions. For performance current to the most recent month-end, visit www.pimco.com or call (844) 33-PIMCO.

⁽²⁾  Distribution yields 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, 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 composition of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be 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 impacted performance during the reporting period:

» The Fund’s exposure to non-agency mortgage-backed securities contributed to performance, as the sector had positive returns.

» The Fund’s exposure to agency mortgage-backed securities contributed to performance, as select positions outperformed during the reporting period.

» The Fund’s exposure to high yield corporates contributed to performance, as the sector had positive returns.

» The Fund’s selection of European residential mortgage-backed securities (RMBS) contributed to performance, as select prime and non-conforming issues outperformed the broader European RMBS sector.

» The Fund’s selection of commercial mortgage-backed securities (CMBS) contributed to performance, as select subordinated issues outperformed the broader CMBS sector.

» The Fund’s exposure to U.S. dollar-denominated Brazilian corporate debt contributed to performance, as the asset class had positive returns.

» The Fund’s exposure to U.S. dollar-denominated Russian corporate debt contributed to performance, as the asset class had positive returns.

» The Fund’s U.S. duration exposure detracted from performance, as U.S. interest rates increased.

» The Fund’s selection of agency collateralized mortgage obligations (CMOs) detracted from performance, as select interest-only bonds underperformed the broader CMO sector.

SEMIANNUAL REPORT DECEMBER 31, 2016 13

PIMCO Dynamic Credit and Mortgage Income Fund

Symbol on NYSE - PCI

Allocation Breakdown as of 12/31/2016^†§

Asset-Backed Securities	43.9%
Non-Agency Mortgage-Backed Securities	27.4%
Corporate Bonds & Notes	20.2%
Short-Term Instruments	5.7%
Bank Loan Obligations	1.5%
Other	1.3%

^†  % of Investments, at value.

^§  Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Fund Information (as of December 31, 2016)⁽¹⁾

Market Price	$20.22
NAV	$21.25
Premium/(Discount) to NAV	(4.85)%
Market Price Distribution Yield(2)	9.74%
NAV Distribution Yield(2)	9.26%
Total Effective Leverage(3)	46%

Average Annual Total Return(1) for the period ended December 31, 2016
	6 Month*		1 Year		Commencement of Operations (01/31/13)
Market Price		14.39%		28.12%		5.76%
NAV		12.15%		17.91%		7.58%

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. Total return, market price, NAV, market price distribution yield, and NAV distribution yield will fluctuate with changes in market conditions. For performance current to the most recent month-end, visit www.pimco.com or call (844) 33-PIMCO.

⁽²⁾  Distribution yields 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, 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 composition of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be 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 Fund’s (formerly PIMCO Dynamic Credit Income Fund) primary investment objective is to seek current income and capital appreciation as a secondary objective.

Fund Insights at NAV

The following impacted performance during the reporting period:

» The Fund’s exposure to non-agency mortgage-backed securities contributed to performance, as the sector had positive returns.

» The Fund’s exposure to high yield corporates contributed to performance, as the sector had positive returns.

» The Fund’s selection of commercial mortgage-backed securities (CMBS) contributed to performance, as select subordinated issues outperformed the broader CMBS sector.

» The Fund’s selection of collateralized loan obligations (CLOs) contributed to performance, as select senior tranches outperformed the broader CLO sector.

» The Fund’s exposure to U.S. dollar-denominated Brazilian corporate debt contributed to performance, as the asset class had positive returns.

» The Fund’s U.S. duration exposure detracted from performance, as U.S. interest rates increased.

» The Fund’s selection of asset backed securities (ABS) detracted from performance, as select student loan ABS underperformed the broader ABS sector.

» The Fund’s exposure to the middle of the Australian and U.K. yield curves detracted modestly from performance, as intermediate term interest rates increased in those countries.

14 PIMCO CLOSED-END FUNDS

PIMCO Dynamic Income Fund

Symbol on NYSE - PDI

Allocation Breakdown as of 12/31/2016^†§

Non-Agency Mortgage-Backed Securities	55.1%
Asset-Backed Securities	26.1%
Corporate Bonds & Notes	11.1%
Short-Term Instruments	5.5%
U.S. Government Agencies	1.2%
Other	1.0%

^†  % of Investments, at value.

^§  Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Fund Information (as of December 31, 2016)⁽¹⁾

Market Price	$27.70
NAV	$25.86
Premium/(Discount) to NAV	7.12%
Market Price Distribution Yield(2)	9.55%
NAV Distribution Yield(2)	10.23%
Total Effective Leverage(3)	47%

Average Annual Total Return(1) for the period ended December 31, 2016
	6 Month*		1 Year		Commencement of Operations (05/30/12)
Market Price		11.21%		17.81%		17.28%
NAV		7.96%		10.95%		16.86%

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. Total return, market price, NAV, market price distribution yield, and NAV distribution yield will fluctuate with changes in market conditions. For performance current to the most recent month-end, visit www.pimco.com or call (844) 33-PIMCO.

⁽²⁾  Distribution yields 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, 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 composition of distributions. Please visit www.pimco.com for most recent Section 19 Notice, if applicable. Final determination of a distribution’s tax character will be 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 Fund’s primary investment objective is to seek current income, and capital appreciation is a secondary objective.

Fund Insights at NAV

The following impacted performance during the reporting period:

» The Fund’s exposure to non-agency mortgage-backed securities contributed to performance, as the sector had positive returns.

» The Fund’s exposure to high yield corporates contributed to performance, as the sector had positive returns.

» The Fund’s selection of European residential mortgage-backed securities (RMBS) contributed to performance, as select prime and non-conforming issues outperformed the broader European RMBS sector.

» The Fund’s selection of commercial mortgage-backed securities (CMBS) contributed to performance, as select subordinated issues outperformed the broader CMBS sector.

» The Fund’s selection of collateralized loan obligations (CLOs) contributed to performance, as select senior tranches outperformed the broader CLO sector.

» The Fund’s exposure to U.S. dollar-denominated Brazilian corporate debt contributed to performance, as the asset class had positive returns.

» The Fund’s exposure to U.S. dollar-denominated Russian corporate debt contributed to performance, as the asset class had positive returns.

» The Fund’s U.S. duration exposure detracted from performance, as U.S. interest rates increased.

» The Fund’s selection of asset backed securities (ABS) detracted from performance, as select student loan ABS underperformed the broader ABS sector.

SEMIANNUAL REPORT DECEMBER 31, 2016 15

Financial Highlights

			Investment Operations								Less Distributions(b)
	Net Asset Value Beginning of Year or Period		Net Investment Income(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.
07/01/2016 - 12/31/2016+	$	9.71	$	0.50	$	0.40		$	0.90		$	(0.98	)	$	0.00		$	0.00		$	(0.98	)
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	)
12/31/2012		9.48		1.06		1.93			2.99			(1.12	)		0.00			0.00			(1.12	)
12/31/2011		9.88		1.13		(0.47	)		0.66			(1.06	)		0.00			0.00			(1.06	)
PIMCO Global StocksPLUS® & Income Fund
07/01/2016 - 12/31/2016+	$	9.76	$	0.51	$	0.83		$	1.34		$	(0.99	)	$	0.00		$	0.00		$	(0.99	)
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	)
03/31/2013		12.57		1.38		2.57			3.95			(2.20	)		0.00			0.00			(2.20	)
03/31/2012		14.88		1.61		(1.72	)		(0.11	)		(2.20	)		0.00			0.00			(2.20	)
PIMCO Income Opportunity Fund
07/01/2016 - 12/31/2016+	$	22.59	$	1.16	$	1.03		$	2.19		$	(1.48	)	$	0.00		$	0.00		$	(1.48	)
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	)
10/31/2012		24.62		2.61		3.69			6.30			(3.06	)		0.00			0.00			(3.06	)
10/31/2011		26.97		3.24		(2.20	)		1.04			(3.39	)		0.00			0.00			(3.39	)
PIMCO Strategic Income Fund, Inc.
07/01/2016 - 12/31/2016+	$	7.89	$	0.33	$	(0.08	)	$	0.25		$	(0.48	)	$	0.00		$	0.00		$	(0.48	)
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	)
01/31/2013		8.91		1.05		0.95			2.00			(1.25	)		0.00			0.00			(1.25	)
01/31/2012		9.97		1.36		(1.03	)		0.33			(1.39	)		0.00			0.00			(1.39	)
PIMCO Dynamic Credit and Mortgage Income Fund
07/01/2016 - 12/31/2016+	$	20.43	$	0.79	$	1.64		$	2.43		$	(1.61	)	$	0.00		$	0.00		$	(1.61	)
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
07/01/2016 - 12/31/2016+	$	26.56	$	1.34	$	0.73		$	2.07		$	(2.77	)	$	0.00		$	0.00		$	(2.77	)
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	)
05/30/2012 - 03/31/2013		23.88		2.79		6.50			9.29			(2.18	)		(0.27	)		0.00			(2.45	)

+ Unaudited

* Annualized

^ Reflects an amount rounding to less than one cent.

^(a)  Per share amounts based on average number of shares outstanding during the year.

^(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 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 or period reported. Dividends and distributions, if any, are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Funds’ dividend reinvestment plan. Total investment return does not reflect brokerage commissions in connection with the purchase or sale of Fund shares.

^(d)  Interest expense primarily relates to participation in borrowing and financing transactions. See Note 5 in the Notes to Financial Statements for more information.

^(e)  Fiscal year end changed from December 31^st to June 30^th.

^(f)  Fiscal year end changed from March 31^st to June 30^th.

^(g)  Fiscal year end changed from October 31^st to June 30^th.

^(h)  Fiscal year end changed from January 31^st to June 30^th.

⁽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.

16 PIMCO CLOSED-END FUNDS See Accompanying Notes

			Common Share							Ratios/Supplemental Data
												Ratios to Average Net Assets
Offering Cost Charged to Paid in Capital in Excess of  Par			Net Asset Value End of Year or Period		Market Price End of Year or Period		Total Investment Return(c)			Net Assets End of Year or Period (000s)		Expenses(d)			Expenses Excluding Interest Expense(d)			Net Investment Income			Portfolio Turnover Rate
$	N/A		$	9.63	$	10.00		13.61	%	$	111,305		3.00	%*		1.56	%*		9.92	%*		4	%
	N/A			9.71		9.72		6.91			112,099		2.69			1.58			12.25			12
	N/A			10.68		10.05		(1.28	)		123,235		2.26	*		1.54	*		8.32	*		20
	N/A			10.72		10.65		0.34			123,633		1.89			1.40			8.38			11
	N/A			11.17		11.65		6.49			128,672		2.05			1.52			9.75			6
	N/A			11.35		12.02		23.34			130,461		2.59			1.76			10.05			13
	N/A			9.48		10.77		10.43			108,810		2.44			1.75			11.30			26
$	N/A		$	10.11	$	14.07		(23.67	)%	$	107,738		3.36	%*		1.97	%*		10.08	%*		7	%
	N/A			9.76		19.53		31.38			103,627		2.75			1.82			10.56			26
	N/A			12.88		16.92		(21.82	)		135,468		2.34	*		1.72	*		10.35	*		3
	N/A			12.82		22.27		4.05			134,594		2.30			1.78			8.29			92
	N/A			14.72		23.67		19.44			153,393		1.94			1.67			9.62			197
	N/A			14.32		21.95		21.57			148,170		2.64			2.10			10.75			33
	N/A			12.57		20.18		(8.00	)		128,952		2.71			2.12			12.70			90
$	N/A		$	23.30	$	23.16		7.31	%	$	349,523		2.92	%*		1.75	%*		9.80	%*		14	%
	N/A			22.59		23.00		7.87			338,292		2.63			1.73			9.99			16
	N/A			25.94		24.20		0.22			388,353		2.43	*		1.79	*		8.93	*		14
	N/A			28.38		27.26		4.39			424,632		2.01			1.65			9.44			175
	N/A			28.67		28.90		6.81			426,561		1.93			1.66			10.03			65
	N/A			27.86		29.85		26.98			411,976		2.29			1.86			10.38			57
	N/A			24.62		26.45		11.68			359,909		2.44			1.93			12.40			194
$	N/A		$	7.66	$	8.79		(3.62	)%	$	324,260		1.41	%*		0.97	%*		8.36	%*		3	%
	N/A			7.89		9.61		24.14			332,051		1.27			0.96			9.43			39
	N/A			8.58		8.69		(5.81	)		357,692		1.16	*		0.96	*		8.58	*		17
	N/A			8.57		9.65		5.92			355,942		1.18			0.98			10.01			90
	N/A			9.24		10.12		(4.58	)		379,762		1.39			1.00			10.48			208
	N/A			9.66		11.84		12.21			392,317		1.55			1.00			11.14			293
	N/A			8.91		11.80		28.34			357,712		1.48			1.01			14.27			147
$	N/A		$	21.25	$	20.22		14.39	%	$	2,915,284		3.70	%*		2.10	%*		7.26	%*		15	%
	N/A			20.43		19.13		6.69			2,804,003		3.20			2.03			9.63			26
	N/A			23.00		20.18		2.23			3,155,689		2.63	*		1.97	*		6.71	*		31
	(0.00	)^		22.83		20.65		2.68			3,132,146		2.36			1.91			7.29			35
	(0.01	)		24.04		22.48		(2.79	)		3,298,673		1.52	*		1.42	*		6.06	*		76
$	N/A		$	25.86	$	27.70		11.21	%	$	1,201,904		3.96	%*		2.13	%*		9.70	%*		11	%
	N/A			26.56		27.57		13.75			1,222,499		3.60			2.12			13.67			13
	N/A			31.38		29.21		2.87			1,426,891		2.83	*		2.01	*		10.23	*		5
	N/A			30.74		29.00		9.04			1,397,987		3.12			2.12			9.98			10
	N/A			32.11		30.32		9.62			1,458,961		3.15			2.17			11.90			18
	(0.03	)		30.69		31.10		35.21			1,393,099		2.91	*		2.04	*		12.04	*		16

SEMIANNUAL REPORT DECEMBER 31, 2016 17

Statements of Assets and Liabilities

December 31, 2016 (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*	$	193,674		$	168,474		$	568,671		$	954,820
Financial Derivative Instruments
Exchange-traded or centrally cleared		134			772			380			81
Over the counter		0			2,202			894			706
Cash		7			70			294			3
Deposits with counterparty		2,058			17,497			6,806			5,493
Foreign currency, at value		0			0			1			96
Receivable for investments sold		5,545			980			13,525			21
Receivable for mortgage dollar rolls		0			0			0			338,309
Interest and/or dividends receivable		1,188			1,723			4,582			3,926
Other assets		2			2			1			2
Total Assets		202,608			191,720			595,154			1,303,457
Liabilities:
Borrowings & Other Financing Transactions
Payable for reverse repurchase agreements	$	88,139		$	78,097		$	235,847		$	117,400
Payable for sale-buyback transactions		0			0			0			52,975
Payable for mortgage dollar rolls		0			0			0			338,309
Financial Derivative Instruments
Exchange-traded or centrally cleared		151			1,453			559			915
Over the counter		1,364			905			4,525			781
Payable for investments purchased		538			2			11			2,094
Payable for TBA investments purchased		0			0			0			462,125
Deposits from counterparty		0			1,771			1,274			560
Distributions payable to common shareholders		924			1,563			2,850			3,386
Overdraft due to custodian		0			1			0			0
Accrued management fees		162			187			552			278
Other liabilities		25			3			13			374
Total Liabilities		91,303			83,982			245,631			979,197
Net Assets	$	111,305		$	107,738		$	349,523		$	324,260
Net Asset Consist of:
Shares:
Par value ($0.001 per share), ($0.00001 per share), ($0.00001 per share), ($0.00001 per share)	$	12		$	0		$	0		$	0
Paid in capital in excess of par		125,702			232,604			343,877			369,599
(Overdistributed) net investment income		(1,259	)		(7,446	)		(9,248	)		(8,204	)
Accumulated undistributed net realized (loss)		(15,803	)		(129,179	)		(1,589	)		(58,775	)
Net unrealized appreciation		2,653			11,759			16,483			21,640
Net Assets Applicable to Common Shareholders	$	111,305		$	107,738		$	349,523		$	324,260
Common shares issued and outstanding		11,554			10,655			15,002			42,329
Net Asset Value Per Common Share	$	9.63		$	10.11		$	23.30		$	7.66
Cost of investments in securities	$	190,949		$	161,812		$	555,421		$	952,081
Cost of foreign currency held	$	0		$	1		$	9		$	96
Cost or premiums of financial derivative instruments, net	$	(1,579	)	$	(1,446	)	$	(4,887	)	$	(695	)
* Includes repurchase agreements of:	$	1,044		$	1,456		$	17,165		$	5,372

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

18 PIMCO CLOSED-END FUNDS See Accompanying Notes

Consolidated Statements of Assets and Liabilities

December 31, 2016 (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*	$	5,210,941		$	2,217,469
Financial Derivative Instruments
Exchange-traded or centrally cleared		4,466			1,764
Over the counter		4,750			2,926
Cash		14,588			6,002
Deposits with counterparty		71,937			25,443
Foreign currency, at value		555			281
Receivable for investments sold		31,743			1,093
Interest and/or dividends receivable		31,533			10,616
Other assets		8			3
Total Assets		5,370,521			2,265,597
Liabilities:
Borrowings & Other Financing Transactions
Payable for reverse repurchase agreements	$	2,387,267		$	1,023,014
Financial Derivative Instruments
Exchange-traded or centrally cleared		5,186			2,396
Over the counter		6,881			15,676
Payable for investments purchased		14,196			6,042
Deposits from counterparty		13,547			3,954
Distributions payable to common shareholders		22,513			10,196
Accrued management fees		5,556			2,370
Other liabilities		91			45
Total Liabilities		2,455,237			1,063,693
Net Assets	$	2,915,284		$	1,201,904
Net Asset Consist of:
Shares:
Par value ($0.00001 per share)	$	1		$	0
Paid in capital in excess of par		3,274,226			1,113,368
(Overdistributed) net investment income		(72,410	)		(30,989	)
Accumulated undistributed net realized gain (loss)		(146,101	)		13,978
Net unrealized appreciation (depreciation)		(140,432	)		105,547
Net Assets Applicable to Common Shareholders	$	2,915,284		$	1,201,904
Common shares issued and outstanding		137,221			46,470
Net Asset Value Per Common Share	$	21.25			25.86
Cost of investments in securities	$	5,356,269		$	2,099,883
Cost of foreign currency held	$	524		$	282
Cost or premiums of financial derivative instruments, net	$	(5,848	)	$	(30,319	)
* Includes repurchase agreements of:	$	178,302		$	63,827

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

SEMIANNUAL REPORT DECEMBER 31, 2016 19

Statements of Operations

Six Months Ended December 31, 2016 (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*	$	7,566		$	7,180		$	21,992		$	16,349
Dividends		2			39			664			7
Total Income		7,568			7,219			22,656			16,356
Expenses:
Management fees		904			1,043			3,081			1,598
Trustee fees and related expenses		10			10			31			29
Interest expense		842			748			2,091			732
Miscellaneous expense		1			7			3			1
Total Expenses		1,757			1,808			5,206			2,360
Net Investment Income		5,811			5,411			17,450			13,996
Net Realized Gain (Loss):
Investments in securities		73			1,873			3,590			(1,007	)
Exchange-traded or centrally cleared financial derivative instruments		36			4,415			(2,800	)		(9,455	)
Over the counter financial derivative instruments		13			803			4,918			3,450
Foreign currency		0			(46	)		(262	)		62
Net Realized Gain (Loss)		122			7,045			5,446			(6,950	)
Net Change in Unrealized Appreciation (Depreciation):
Investments in securities		4,667			(287	)		7,336			(23,699	)
Exchange-traded or centrally cleared financial derivative instruments		(367	)		(291	)		4,830			27,735
Over the counter financial derivative instruments		167			2,533			(1,203	)		(521	)
Foreign currency assets and liabilities		0			(497	)		(1,008	)		(51	)
Net Change in Unrealized Appreciation		4,467			1,458			9,955			3,464
Net Increase in Net Assets Resulting from Operations	$	10,400		$	13,914		$	32,851		$	10,510
* Foreign tax withholdings	$	0		$	0		$	1		$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

20 PIMCO CLOSED-END FUNDS See Accompanying Notes

Consolidated Statements of Operations

Six Months Ended December 31, 2016 (Unaudited)
(Amounts in thousands†)	PIMCO Dynamic Credit and Mortgage Income Fund			PIMCO Dynamic Income Fund
Investment Income:
Interest, net of foreign taxes*	$	163,423		$	87,046
Dividends		813			93
Total Income		164,236			87,139
Expenses:
Management fees		31,129			13,477
Trustee fees and related expenses		257			111
Interest expense		24,012			11,644
Miscellaneous expense		59			25
Total Expenses		55,457			25,257
Net Investment Income		108,779			61,882
Net Realized Gain (Loss):
Investments in securities		43,336			(6,658	)
Exchange-traded or centrally cleared financial derivative instruments		14,932			23,752
Over the counter financial derivative instruments		31,402			19,816
Foreign currency		(1,918	)		84
Net Realized Gain		87,752			36,994
Net Change in Unrealized Appreciation (Depreciation):
Investments in securities		183,369			16,886
Exchange-traded or centrally cleared financial derivative instruments		(16,251	)		(16,186	)
Over the counter financial derivative instruments		(8,532	)		(4,344	)
Foreign currency assets and liabilities		(22,309	)		299
Net Change in Unrealized Appreciation (Depreciation)		136,277			(3,345	)
Net Increase in Net Assets Resulting from Operations	$	332,808		$	95,531
* Foreign tax withholdings	$	12		$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

SEMIANNUAL REPORT DECEMBER 31, 2016 21

Statements of Changes in Net Assets

	PCM Fund, Inc.						PIMCO Global StocksPLUS® & Income Fund
(Amounts in thousands†)	Six Months Ended December 31, 2016 (Unaudited)			Year Ended June 30, 2016			Six Months Ended December 31, 2016 (Unaudited)			Year Ended June 30, 2016
Increase (Decrease) in Net Assets from:
Operations:
Net investment income	$	5,811		$	14,041		$	5,411		$	12,107
Net realized gain (loss)		122			4,847			7,045			(4,285	)
Net change in unrealized appreciation (depreciation)		4,467			(18,989	)		1,458			(18,012	)
Net Increase (Decrease) in Net Assets Resulting from Operations		10,400			(101	)		13,914			(10,190	)
Distributions to Common Shareholders:
From net investment income		(11,314	)		(11,077	)		(10,531	)		(21,340	)
From net realized capital gains		0			0			0			0
Tax basis return of capital		0			0			0			(1,918	)
Total Distributions to Common Shareholders(a)		(11,314	)		(11,077	)		(10,531	)		(23,258	)
Common Share Transactions**:
Issued as reinvestment of distributions		120			42			728			1,607
Total (Decrease) in Net Assets		(794	)		(11,136	)		4,111			(31,841	)
Net Assets Applicable to Common Shareholders:
Beginning of period		112,099			123,235			103,627			135,468
End of period*	$	111,305		$	112,099		$	107,738		$	103,627
* Including undistributed (overdistributed) net investment income of:	$	(1,259	)	$	4,244		$	(7,446	)	$	(2,326	)
** Common Share Transactions:
Shares issued as reinvestment of distributions		12			4			41			96

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

^(a)  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 in the Notes to Financial Statements for more information.

22 PIMCO CLOSED-END FUNDS See Accompanying Notes

PIMCO Income Opportunity Fund						PIMCO Strategic Income Fund, Inc.
Six Months Ended December 31, 2016 (Unaudited)			Year Ended June 30, 2016			Six Months Ended December 31, 2016 (Unaudited)			Year Ended June 30, 2016
$	17,450		$	34,942		$	13,996		$	31,977
	5,446			5,713			(6,950	)		(14,799	)
	9,955			(49,146	)		3,464			(4,489	)
	32,851			(8,491	)		10,510			12,689
	(22,198	)		(34,129	)		(20,274	)		(41,907	)
	0			(7,634	)		0			0
	(22,198	)		(41,763	)		(20,274	)		(41,907	)
	578			193			1,973			3,577
	11,231			(50,061	)		(7,791	)		(25,641	)
	338,292			388,353			332,051			357,692
$	349,523		$	338,292		$	324,260		$	332,051
$	(9,248	)	$	(4,500	)	$	(8,204	)	$	(1,926	)
	25			9			213			416

SEMIANNUAL REPORT DECEMBER 31, 2016 23

Consolidated Statements of Changes in Net Assets

	PIMCO Dynamic Credit and Mortgage Income Fund						PIMCO Dynamic Income Fund
(Amounts in thousands†)	Six Months Ended December 31, 2016 (Unaudited)			Year Ended June 30, 2016			Six Months Ended December 31, 2016 (Unaudited)			Year Ended June 30, 2016
Increase (Decrease) in Net Assets from:
Operations:
Net investment income	$	108,779		$	276,227		$	61,882		$	176,980
Net realized gain (loss)		87,752			(88,323	)		36,994			(197	)
Net change in unrealized appreciation (depreciation)		136,277			(240,018	)		(3,345	)		(157,227	)
Net Increase (Decrease) in Net Assets Resulting from Operations		332,808			(52,114	)		95,531			19,556
Distributions to Common Shareholders:
From net investment income		(221,527	)		(299,572	)		(128,104	)		(193,676	)
From net realized capital gains		0			0			0			(45,024	)
Total Distributions to Common Shareholders(a)		(221,527	)		(299,572	)		(128,104	)		(238,700	)
Common Share Transactions**:
Issued as reinvestment of distributions		0			0			11,978			14,752
Net increase (decrease) resulting from common share transactions		0			0			11,978			14,752
Total Increase (Decrease) in Net Assets		111,281			(351,686	)		(20,595	)		(204,392	)
Net Assets Applicable to Common Shareholders:
Beginning of period		2,804,003			3,155,689			1,222,499			1,426,891
End of period*	$	2,915,284		$	2,804,003		$	1,201,904		$	1,222,499
* Including undistributed (overdistributed) net investment income of:	$	(72,410	)	$	40,338		$	(30,989	)	$	35,233
** Common Share Transactions:
Shares issued as reinvestment of distributions		0			0			445			546

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

^(a)  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 in the Notes to Financial Statements for more information.

24 PIMCO CLOSED-END FUNDS See Accompanying Notes

Statements of Cash Flows

Six Months Ended December 31, 2016
(Amounts in thousands†)	PCM Fund, Inc.			PIMCO Global StocksPLUS® & Income Fund			PIMCO Income Opportunity Fund			PIMCO Strategic Income Fund, Inc.
Cash Flows Provided by (Used for) Operating Activities:
Net increase in net assets resulting from operations	$	10,400		$	13,914		$	32,851		$	10,510
Adjustments to Reconcile Net Increase in Net Assets from Operations to Net Cash Provided by (Used for) Operating Activities:
Purchases of long-term securities		(27,791	)		(17,889	)		(108,920	)		(161,838	)
Proceeds from sales of long-term securities		24,547			17,512			106,398			47,565
(Purchases) Proceeds from sales of short-term portfolio investments, net		7,550			(1,838	)		4,437			(17,105	)
(Increase) decrease in deposits with counterparty		(462	)		1,704			(4,327	)		(3,339	)
(Increase) decrease in receivable for investments sold		8			1,365			(8,349	)		(10	)
(Increase) in interest and/or dividends receivable		(137	)		(498	)		(1,092	)		(1,000	)
Proceeds from (Payments on) exchange-traded or centrally cleared financial derivative instruments		(303	)		4,825			2,420			19,888
Proceeds from (Payments on) over the counter financial derivative instruments		(36	)		775			4,445			3,444
Decrease in other assets		0			0			2			1
Increase (decrease) in payable for investments purchased		538			(1,598	)		(2,263	)		93,664
Increase (decrease) in deposits from counterparty		0			1,751			(1,287	)		(5,441	)
Increase in accrued investment advisory fees		19			22			73			20
Proceeds from (Payments on) foreign currency transactions		0			(45	)		(243	)		11
Increase (Decrease) in other liabilities		(5	)		(3	)		0			70
Net Realized (Gain) Loss
Investments in securities		(73	)		(1,873	)		(3,590	)		1,007
Exchange-traded or centrally cleared financial derivative instruments		(36	)		(4,415	)		2,800			9,455
Over the counter financial derivative instruments		(13	)		(803	)		(4,918	)		(3,450	)
Foreign currency		0			46			262			(62	)
Net Change in Unrealized (Appreciation) Depreciation
Investments in securities		(4,667	)		287			(7,336	)		23,699
Exchange-traded or centrally cleared financial derivative instruments		367			291			(4,830	)		(27,735	)
Over the counter financial derivative instruments		(167	)		(2,533	)		1,203			521
Foreign currency assets and liabilities		0			497			1,008			51
Net amortization (accretion) on investments		(230	)		(60	)		(1,894	)		745
Net Cash Provided by (Used for) Operating Activities		9,509			11,434			6,850			(9,329	)
Cash Flows Received from (Used for) Financing Activities:
Increase in overdraft due to custodian		0			1			0			0
Cash distributions paid*		(11,194	)		(10,186	)		(21,616	)		(18,284	)
Proceeds from reverse repurchase agreements		132,628			150,658			486,129			291,649
Payments on reverse repurchase agreements		(131,358	)		(151,892	)		(471,502	)		(277,581	)
Proceeds from sale-buyback transactions		0			0			0			1,094,249
Payments on sale-buyback transactions		0			0			0			(1,081,169	)
Proceeds from mortgage dollar rolls		0			0			0			2,695,136
Payments on mortgage dollar rolls		0			0			0			(2,695,136	)
Net Cash Received from (Used for) Financing Activities		(9,924	)		(11,419	)		(6,989	)		8,864
Net Increase (Decrease) in Cash and Foreign Currency		(415	)		15			(139	)		(465	)
Cash and Foreign Currency:
Beginning of period		422			55			434			564
End of period	$	7		$	70		$	295		$	99
* Reinvestment of distributions	$	120		$	728		$	578		$	1,973
Supplemental Disclosure of Cash Flow Information:
Interest expense paid during the period	$	652		$	636		$	1,776		$	552

^† A zero balance may reflect actual amounts rounding to less than one thousand.

SEMIANNUAL REPORT DECEMBER 31, 2016 25

Consolidated Statements of Cash Flows

Period Ended December 31, 2016
(Amounts in thousands†)	PIMCO Dynamic Credit and Mortgage Income Fund			PIMCO Dynamic Income Fund
Cash Flows Provided by Operating Activities:
Net increase in net assets resulting from operations	$	332,808		$	95,531
Adjustments to Reconcile Net Increase in Net Assets from Operations to Net Cash Provided by Operating Activities:
Purchases of long-term securities		(1,005,548	)		(307,098	)
Proceeds from sales of long-term securities		1,105,043			352,483
(Purchases) Proceeds from sales of short-term portfolio investments, net		(6,173	)		12,195
Decrease in deposits with counterparty		31,275			4,267
Decrease in receivable for investments sold		35,139			4,371
(Increase) in interest and/or dividends receivable		(4,927	)		(728	)
Proceeds from exchange-traded or centrally cleared financial derivative instruments		1,961			9,546
Proceeds from over the counter financial derivative instruments		30,980			18,963
Decrease in other assets		4			2
(Decrease) in payable for investments purchased		(14,997	)		(13,257	)
(Decrease) in deposits from counterparty		(5,829	)		(8,145	)
Increase in accrued management fees		725			246
(Payments on) Proceeds from foreign currency transactions		(1,927	)		113
(Decrease) in other liabilities		(16	)		(4	)
Net Realized (Gain) Loss
Investments in securities		(43,336	)		6,658
Exchange-traded or centrally cleared financial derivative instruments		(14,932	)		(23,752	)
Over the counter financial derivative instruments		(31,402	)		(19,816	)
Foreign currency		1,918			(84	)
Net Change in Unrealized (Appreciation) Depreciation
Investments in securities		(183,369	)		(16,886	)
Exchange-traded or centrally cleared financial derivative instruments		16,251			16,186
Over the counter financial derivative instruments		8,532			4,344
Foreign currency assets and liabilities		22,309			(299	)
Net amortization (accretion) on investments		(22,094	)		(7,801	)
Net Cash Provided by Operating Activities		252,395			127,035
Cash Flows (Used for) Financing Activities:
(Decrease) in overdraft due to custodian		(593	)		(112	)
Cash dividend paid*		(221,527	)		(116,078	)
Proceeds from reverse repurchase agreements		4,237,766			1,613,899
Payments on reverse repurchase agreements		(4,253,635	)		(1,618,614	)
Net Cash (Used for) Financing Activities		(237,989	)		(120,905	)
Net Increase in Cash and Foreign Currency		14,406			6,130
Cash and Foreign Currency:
Beginning of period		737			153
End of year period	$	15,143		$	6,283
* Reinvestment of distributions	$	0		$	11,978
Supplemental Disclosure of Cash Flow Information:
Interest expense paid during the period	$	19,626		$	10,477

^† A zero balance may reflect actual amounts rounding to less than one thousand.

26 PIMCO CLOSED-END FUNDS See Accompanying Notes

Schedule of Investments PCM Fund, Inc.

December 31, 2016 (Unaudited)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
INVESTMENTS IN SECURITIES 174.0%
BANK LOAN OBLIGATIONS 3.9%
Cactus Wellhead LLC
7.000% due 07/31/2020	$		488	$		442
iHeartCommunications, Inc.
7.520% due 01/30/2019			3,000			2,447
Rackspace Hosting, Inc.
4.500% due 11/03/2023			500			507
Sequa Corp.
5.250% due 06/19/2017			1,041			996
Total Bank Loan Obligations (Cost $4,973)						4,392
CORPORATE BONDS & NOTES 28.0%
BANKING & FINANCE 9.7%
Blackstone CQP Holdco LP
9.296% due 03/19/2019			3,787			3,820
Cantor Fitzgerald LP
7.875% due 10/15/2019 (i)			740			820
Communications Sales & Leasing, Inc.
8.250% due 10/15/2023 (i)			304			324
Exeter Finance Corp.
9.750% due 05/20/2019			800			760
Jefferies Finance LLC
7.500% due 04/15/2021 (i)			187			186
Jefferies LoanCore LLC
6.875% due 06/01/2020 (i)			1,000			960
KGH Intermediate Holdco LLC
12.000% due 08/08/2019 (g)			1,425			1,411
Navient Corp.
8.450% due 06/15/2018 (i)			711			768
OneMain Financial Holdings LLC
6.750% due 12/15/2019			9			9
Springleaf Finance Corp.
5.250% due 12/15/2019			14			14
7.750% due 10/01/2021 (i)			150			159
8.250% due 12/15/2020 (i)			900			981
Toll Road Investors Partnership LP
0.000% due 02/15/2045 (d)			2,631			577
						10,789
INDUSTRIALS 15.9%
BMC Software Finance, Inc.
8.125% due 07/15/2021			72			68
Boxer Parent Co., Inc. (9.000% Cash or 9.750% PIK)
9.000% due 10/15/2019 (b)(i)			1,017			958
Caesars Entertainment Operating Co., Inc.
8.500% due 02/15/2020 ^(f)			3,091			3,246
9.000% due 02/15/2020 ^(f)			179			187
California Resources Corp.
8.000% due 12/15/2022 (i)			437			391
Chesapeake Energy Corp.
4.130% due 04/15/2019			10			10
CVS Pass-Through Trust
5.880% due 01/10/2028 (i)			1,320			1,457
Diamond Resorts International, Inc.
10.750% due 09/01/2024 (i)			500			492
Forbes Energy Services Ltd.
9.000% due 06/15/2019 ^(f)			1,900			684
Intrepid Aviation Group Holdings LLC
6.875% due 02/15/2019 (i)			1,700			1,530
Kinetic Concepts, Inc.
9.625% due 10/01/2021 (i)			1,400			1,487
Prime Security Services Borrower LLC
9.250% due 05/15/2023 (i)			460			502
Scientific Games International, Inc.
10.000% due 12/01/2022			440			440
Sequa Corp.
7.000% due 12/15/2017			1,140			638

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Spanish Broadcasting System, Inc.
12.500% due 04/15/2017 (i)	$		2,290	$		2,299
UAL Pass-Through Trust
6.636% due 01/02/2024 (i)			566			611
9.750% due 07/15/2018 (i)			234			235
UCP, Inc.
8.500% due 10/21/2017			1,300			1,292
Westmoreland Coal Co.
8.750% due 01/01/2022 (i)			1,264			1,160
						17,687
UTILITIES 2.4%
Frontier Communications Corp.
11.000% due 09/15/2025			150			155
Illinois Power Generating Co.
6.300% due 04/01/2020 ^			1,515			545
7.950% due 06/01/2032 ^			1,024			369
Sprint Corp.
7.125% due 06/15/2024 (i)			946			977
TerraForm Power Operating LLC
6.375% due 02/01/2023 (i)			600			611
						2,657
Total Corporate Bonds & Notes (Cost $33,270)						31,133
MUNICIPAL BONDS & NOTES 1.1%
ARKANSAS 0.4%
Little Rock Municipal Property Owners Multipurpose Improvement District No. 10, Arkansas Special Tax Bonds, Series 2007
7.200% due 03/01/2032			455			425
WEST VIRGINIA 0.7%
Tobacco Settlement Finance Authority, West Virginia Revenue Bonds, Series 2007
7.467% due 06/01/2047			840			760
Total Municipal Bonds & Notes (Cost $1,243)						1,185
U.S. GOVERNMENT AGENCIES 2.0%
Freddie Mac
0.100% due 05/25/2020 (a)			13,570			33
0.568% due 01/25/2021 (a)			2,659			53
0.701% due 10/25/2020 (a)			8,628			187
3.615% due 06/25/2041 (a)(i)			10,500			1,454
8.306% due 12/25/2027			450			475
Total U.S. Government Agencies (Cost $2,064)						2,202
NON-AGENCY MORTGAGE-BACKED SECURITIES 67.4%
Adjustable Rate Mortgage Trust
3.215% due 01/25/2036 ^			229			197
Banc of America Alternative Loan Trust
6.229% due 04/25/2037 ^			309			279
Banc of America Commercial Mortgage Trust
5.695% due 07/10/2046			276			276
Banc of America Funding Trust
2.981% due 12/20/2034			370			345
3.195% due 03/20/2036			132			119
5.806% due 03/25/2037 ^			150			131
7.000% due 10/25/2037 ^			844			516
Banc of America Mortgage Trust
3.398% due 11/25/2034			275			276
3.408% due 06/20/2031			452			461
3.410% due 06/25/2035			198			192
BCAP LLC Trust
0.762% due 07/26/2036			87			68
BCRR Trust
5.858% due 07/17/2040			1,000			1,001
Bear Stearns ALT-A Trust
0.926% due 04/25/2037 (i)			1,090			927
2.891% due 09/25/2034			108			105

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
2.972% due 05/25/2036	$		54	$		38
3.032% due 01/25/2047			66			49
3.110% due 08/25/2036 ^			740			689
3.112% due 11/25/2036 ^			967			710
3.184% due 08/25/2036 ^			401			295
3.244% due 05/25/2036 ^			355			275
4.661% due 07/25/2035 ^			179			146
Bear Stearns Asset-Backed Securities Trust
5.500% due 12/25/2035			68			58
Bear Stearns Commercial Mortgage Securities Trust
5.711% due 06/11/2040 (i)			1,257			1,258
BRAD Resecuritization Trust
2.181% due 03/12/2021			2,323			153
6.550% due 03/12/2021			434			423
CBA Commercial Small Balance Commercial Mortgage
5.540% due 01/25/2039 ^			536			397
Chase Mortgage Finance Trust
6.000% due 03/25/2037 ^			303			260
Citigroup Commercial Mortgage Trust
5.711% due 12/10/2049 (i)			2,500			2,522
Citigroup Mortgage Loan Trust, Inc.
3.065% due 10/25/2035			788			595
3.177% due 11/25/2036 ^			206			171
3.237% due 08/25/2035 ^			118			104
3.818% due 11/25/2035			1,889			1,058
Citigroup Mortgage Loan Trust, Inc. Mortgage Pass-Through Certificates
3.191% due 09/25/2035 ^			258			211
Citigroup/Deutsche Bank Commercial Mortgage Trust
5.398% due 12/11/2049			825			719
CitiMortgage Alternative Loan Trust
5.500% due 04/25/2022 ^			51			52
Commercial Mortgage Loan Trust
6.095% due 12/10/2049			278			176
Commercial Mortgage Pass-Through Certificates
4.750% due 10/15/2045			1,500			1,035
Commercial Mortgage Trust
6.139% due 07/10/2046			690			743
Countrywide Alternative Loan Trust
1.036% due 02/25/2037			322			266
1.046% due 02/25/2036 ^(i)			1,057			823
1.306% due 10/25/2037			6,097			1,811
1.567% due 12/25/2035 (i)			1,746			1,599
5.500% due 03/25/2035			762			611
6.000% due 11/25/2035 ^			215			99
6.000% due 04/25/2036 ^(i)			4,233			3,274
Countrywide Home Loan Mortgage Pass-Through Trust
1.396% due 03/25/2035			230			176
2.626% due 03/25/2046 ^(i)			1,313			759
3.005% due 09/20/2036 ^			184			147
3.130% due 09/25/2047 ^			798			739
3.309% due 02/20/2036 ^			18			16
6.000% due 05/25/2037 ^			404			343
Credit Suisse First Boston Mortgage Securities Corp.
7.000% due 02/25/2033			88			95
Credit Suisse Mortgage Capital Mortgage-Backed Trust
5.896% due 04/25/2036			315			233
6.000% due 07/25/2036 (i)			1,733			1,300
6.500% due 05/25/2036 ^			202			132
First Horizon Alternative Mortgage Securities Trust
2.855% due 08/25/2035 ^			83			17
First Horizon Mortgage Pass-Through Trust
2.922% due 04/25/2035			94			94
GE Commercial Mortgage Corp. Trust
5.606% due 12/10/2049 (i)			1,700			1,702
GS Mortgage Securities Trust
1.429% due 08/10/2043 (a)			14,300			592
2.386% due 05/10/2045 (a)			5,308			407
6.064% due 08/10/2043 (i)			1,670			1,692
GSR Mortgage Loan Trust
3.228% due 03/25/2047 (i)			2,067			1,879
HarborView Mortgage Loan Trust
0.986% due 01/19/2036			973			645
IndyMac Mortgage Loan Trust
1.556% due 11/25/2034			151			128

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 27

Schedule of Investments PCM Fund, Inc. (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
3.118% due 05/25/2036	$		225	$		157
3.398% due 06/25/2037			562			520
JPMorgan Alternative Loan Trust
6.500% due 03/25/2036			1,457			1,283
JPMorgan Chase Commercial Mortgage Securities Corp.
1.419% due 03/12/2039 (a)			441			4
JPMorgan Chase Commercial Mortgage Securities Trust
0.507% due 02/15/2046 (a)			61,000			1,313
2.972% due 05/15/2045			2,200			1,027
4.000% due 08/15/2046			1,000			601
5.502% due 01/12/2043			299			300
5.713% due 02/12/2049 (i)			800			805
5.794% due 02/12/2051 (i)			755			767
6.450% due 05/12/2034 (i)			1,701			1,713
JPMorgan Commercial Mortgage-Backed Securities Trust
5.716% due 03/18/2051 (i)			4,100			4,122
JPMorgan Mortgage Trust
3.182% due 07/25/2035			125			125
LB Commercial Mortgage Trust
5.600% due 10/15/2035			65			66
5.918% due 07/15/2044 (i)			750			760
LB-UBS Commercial Mortgage Trust
5.407% due 11/15/2038 (i)			383			296
5.562% due 02/15/2040 (i)			719			541
5.752% due 02/15/2040			200			199
Lehman Mortgage Trust
5.000% due 08/25/2021 ^			422			412
5.908% due 04/25/2036			247			221
6.000% due 05/25/2037 ^			517			506
MASTR Adjustable Rate Mortgages Trust
3.012% due 11/25/2035 ^(i)			636			480
MASTR Asset Securitization Trust
6.000% due 06/25/2036 ^			606			580
Merrill Lynch Mortgage Investors Trust
1.176% due 07/25/2030			254			233
1.244% due 11/25/2029			152			147
3.026% due 11/25/2035			234			229
Merrill Lynch Mortgage Trust
5.826% due 06/12/2050 (i)			1,800			1,748
Morgan Stanley Capital Trust
0.195% due 11/12/2049 (a)			10,650			42
5.690% due 04/15/2049 (i)			2,041			2,002
5.692% due 04/15/2049			234			234
5.809% due 12/12/2049			400			406
Morgan Stanley Capital, Inc. Trust
6.010% due 11/15/2030 (i)			458			463
Morgan Stanley Mortgage Loan Trust
3.326% due 01/25/2035 ^			295			109
6.000% due 08/25/2037 ^			342			297
Morgan Stanley Resecuritization Trust
5.135% due 03/26/2037			5,469			4,877
Regal Trust
2.098% due 09/29/2031			158			147
Residential Accredit Loans, Inc. Trust
4.137% due 01/25/2036 ^			509			408
6.000% due 08/25/2035 ^			322			293
6.500% due 09/25/2037 ^			337			293
Residential Asset Securitization Trust
6.000% due 03/25/2037 ^			282			190
Residential Funding Mortgage Securities, Inc. Trust
6.000% due 06/25/2036 ^			341			327
Royal Bank of Scotland Capital Funding Trust
6.068% due 02/17/2051			2,744			2,766
Structured Adjustable Rate Mortgage Loan Trust
3.013% due 01/25/2036 ^			428			324
3.236% due 09/25/2036 ^			307			270
3.312% due 04/25/2036 ^			512			403
3.317% due 11/25/2036 ^			148			143
Structured Asset Mortgage Investments Trust
0.966% due 08/25/2036 ^			1,099			893
Structured Asset Securities Corp. Trust
5.000% due 05/25/2035			41			41
TBW Mortgage-Backed Trust
6.000% due 07/25/2036 ^			187			134

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Wachovia Bank Commercial Mortgage Trust
0.652% due 10/15/2041 (a)	$		1,743	$		0
5.509% due 04/15/2047 (i)			676			677
WaMu Commercial Mortgage Securities Trust
5.752% due 03/23/2045 (i)			625			625
WaMu Mortgage Pass-Through Certificates Trust
1.246% due 06/25/2044			644			562
2.676% due 12/25/2036 ^(i)			504			466
Washington Mutual Mortgage Pass-Through Certificates Trust
6.500% due 08/25/2036 ^(i)			1,779			1,324
Wells Fargo Alternative Loan Trust
5.500% due 07/25/2022			46			46
Wells Fargo-RBS Commercial Mortgage Trust
0.802% due 02/15/2044 (a)(i)			18,006			466
Total Non-Agency Mortgage-Backed Securities (Cost $67,710)						74,992
ASSET-BACKED SECURITIES 65.3%
Airspeed Ltd.
0.974% due 06/15/2032			691			541
Asset-Backed Securities Corp. Home Equity Loan Trust
1.851% due 02/25/2035 (i)			3,374			2,817
2.481% due 12/25/2034 (i)			1,986			1,799
3.994% due 06/21/2029			156			150
Associates Manufactured Housing Pass-Through Certificates
7.150% due 03/15/2028			422			506
Bayview Financial Acquisition Trust
1.036% due 12/28/2036			172			168
Bear Stearns Asset-Backed Securities Trust
1.136% due 04/25/2036			2,900			1,997
1.136% due 06/25/2036			23			23
3.012% due 07/25/2036			368			348
Bombardier Capital Mortgage Securitization Corp.
7.830% due 06/15/2030			1,187			578
Centex Home Equity Loan Trust
1.256% due 01/25/2035 (i)			1,701			1,387
Citigroup Mortgage Loan Trust, Inc.
0.916% due 12/25/2036 (i)			1,845			1,147
0.976% due 12/25/2036			956			517
1.016% due 03/25/2037 (i)			4,610			3,542
1.206% due 11/25/2045 (i)			5,300			4,966
Conseco Finance Securitizations Corp.
7.960% due 05/01/2031			382			278
9.163% due 03/01/2033			939			873
Countrywide Asset-Backed Certificates
0.886% due 12/25/2036 ^(i)			1,458			1,442
0.896% due 06/25/2035 (i)			3,019			2,328
0.896% due 01/25/2037 (i)			1,085			890
0.896% due 06/25/2047 ^(i)			3,365			2,441
0.906% due 04/25/2047 (i)			1,418			1,313
0.956% due 06/25/2037 ^(i)			944			698
0.996% due 05/25/2036 (i)			9,015			4,481
2.406% due 06/25/2035 (i)			4,000			3,408
5.253% due 10/25/2032 ^			918			805
Countrywide Asset-Backed Certificates Trust
0.854% due 09/25/2046			5,000			2,132
EMC Mortgage Loan Trust
1.884% due 02/25/2041			344			338
Fremont Home Loan Trust
0.936% due 04/25/2036 (i)			1,404			1,277
GE Capital Mortgage Services, Inc. Trust
6.705% due 04/25/2029			138			116
GSAMP Trust
2.556% due 06/25/2035 (i)			2,200			1,856
HSI Asset Securitization Corp. Trust
0.866% due 04/25/2037 (i)			4,346			2,473
IndyMac Home Equity Mortgage Loan Asset-Backed Trust
0.996% due 04/25/2037 (i)			5,589			3,527
Keystone Owner Trust
9.000% due 01/25/2029			56			36

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Lehman XS Trust
5.420% due 11/25/2035 ^	$		280	$		282
MASTR Asset-Backed Securities Trust
0.866% due 08/25/2036 (i)			3,759			1,930
Morgan Stanley ABS Capital, Inc. Trust
1.536% due 12/25/2034			202			167
National Collegiate Commutation Trust
0.000% due 03/25/2038			3,500			1,553
People’s Financial Realty Mortgage Securities Trust
0.886% due 09/25/2036			1,611			501
Renaissance Home Equity Loan Trust
7.238% due 09/25/2037 ^(i)			4,244			2,577
Residential Asset Mortgage Products Trust
1.496% due 09/25/2032			45			40
1.679% due 12/25/2033			760			705
Residential Asset Securities Corp. Trust
1.216% due 06/25/2031 (i)			1,602			1,518
1.446% due 08/25/2035 (i)			4,350			3,168
Securitized Asset-Backed Receivables LLC Trust
1.206% due 10/25/2035 (i)			5,500			4,641
1.401% due 01/25/2035 (i)			1,662			1,468
SoFi Professional Loan Program LLC
0.000% due 01/25/2039 (d)			1,000			583
Southern Pacific Secured Asset Corp.
1.096% due 07/25/2029			16			16
Structured Asset Investment Loan Trust
2.481% due 10/25/2034 (i)			1,986			1,716
5.256% due 10/25/2033			68			64
UCFC Manufactured Housing Contract
7.900% due 01/15/2028 ^			508			499
UPS Capital Business Credit
6.177% due 04/15/2026			1,856			37
Total Asset-Backed Securities (Cost $73,659)						72,663
		SHARES
COMMON STOCKS 0.1%
ENERGY 0.1%
SemGroup Corp. ‘A’			2,654			111
UTILITIES 0.0%
Warren Resources, Inc.			7,681			28
Total Common Stocks (Cost $1,062)						139
SHORT-TERM INSTRUMENTS 6.2%
REPURCHASE AGREEMENTS (h) 0.9%
						1,044
		PRINCIPAL AMOUNT (000S)
SHORT-TERM NOTES 3.8%
Federal Home Loan Bank
0.416% due 01/27/2017 (d)(e)	$		200			200
0.457% due 01/20/2017 - 01/27/2017 (d)(e)			1,600			1,599
0.497% due 01/18/2017 (d)(e)			200			200
0.507% due 01/12/2017 - 01/25/2017 (d)(e)			2,000			2,000
0.517% due 02/10/2017 (d)(e)			200			200
						4,199

28 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
U.S. TREASURY BILLS 1.5%
0.475% due 03/02/2017 - 03/09/2017 (c)(d)(l)	$		1,726	$		1,725
Total Short-Term Instruments (Cost $6,968)						6,968
Total Investments in Securities (Cost $190,949)						193,674
Total Investments 174.0% (Cost $190,949)				$		193,674
Financial Derivative Instruments (j)(k) (1.2)% (Cost or Premiums, net $(1,579))						(1,381	)
Other Assets and Liabilities, net (72.8)%						(80,988	)
Net Assets Applicable to Common Shareholders 100.0%				$		111,305

NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*):

* A zero balance may reflect actual amounts rounding to less than one thousand.

^ Security is in default.

(a) Interest only security.

(b) Payment in-kind security.

(c) Coupon represents a weighted average yield to maturity.

(d) Zero coupon security.

(e) Coupon represents a yield to maturity.

(f) Security is subject to a forbearance agreement entered into by the Fund which forbears the Fund from taking action to, among other things, accelerate and collect payments on the subject note with respect to specified events of default.

(g)  RESTRICTED SECURITIES:

Issuer Description	Coupon	Maturity Date		Acquisition Date		Cost		Market Value		Market Value as Percentage of Net Assets
KGH Intermediate Holdco LLC	12.000%		08/08/2019		08/07/2014		$    1,409	$	1,411		1.27%

BORROWINGS AND OTHER FINANCING TRANSACTIONS

(h)  REPURCHASE AGREEMENTS:

Counterparty	Lending Rate			Settlement Date		Maturity Date		Principal Amount		Collateralized By	Collateral (Received)			Repurchase Agreements, at Value		Repurchase Agreement Proceeds to be Received(1)
SSB		0.010	%		12/30/2016		01/03/2017	$	1,044	U.S. Treasury Notes 1.000% due 05/15/2018(2)	$	(1,066	)	$	1,044	$	1,044
Total Repurchase Agreements											$	(1,066	)	$	1,044	$	1,044

⁽¹⁾  Includes accrued interest.

⁽²⁾  Includes accrued interest. Collateral is held in custody by the counterparty.

REVERSE REPURCHASE AGREEMENTS:

Counterparty	Borrowing Rate(3)			Borrowing Date		Maturity Date			Amount Borrowed(3)			Payable for Reverse Repurchase Agreements
BCY		0.000	%		12/16/2016		12/16/2017		$	(506	)	$	(506	)
		1.150			12/16/2016		TBD	(4)		(1,966	)		(1,967	)
		2.114			10/05/2016		01/05/2017			(311	)		(313	)
		2.354			10/03/2016		01/03/2017			(4,926	)		(4,956	)
		2.442			12/02/2016		03/02/2017			(3,672	)		(3,680	)
		2.497			01/03/2017		04/03/2017			(4,133	)		(4,133	)
		2.832			08/30/2016		03/01/2017			(1,088	)		(1,099	)

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 29

Schedule of Investments PCM Fund, Inc. (Cont.)

Counterparty	Borrowing Rate(3)			Borrowing Date		Maturity Date		Amount Borrowed(3)			Payable for Reverse Repurchase Agreements
DEU		1.850	%		11/23/2016		01/12/2017	$	(221	)	$	(221	)
		1.850			11/23/2016		02/23/2017		(1,259	)		(1,262	)
		1.950			12/02/2016		03/02/2017		(1,200	)		(1,202	)
		1.950			12/14/2016		03/02/2017		(269	)		(269	)
GSC		2.104			12/15/2016		01/13/2017		(913	)		(914	)
JPS		1.680			11/29/2016		03/01/2017		(464	)		(465	)
		1.876			10/11/2016		01/06/2017		(1,305	)		(1,311	)
		2.430			11/29/2016		03/01/2017		(1,246	)		(1,249	)
MSC		1.750			10/19/2016		01/19/2017		(3,317	)		(3,329	)
		2.631			08/05/2016		02/06/2017		(1,374	)		(1,380	)
RBC		1.940			12/01/2016		06/01/2017		(571	)		(572	)
		2.550			09/13/2016		03/13/2017		(1,511	)		(1,523	)
		2.560			09/21/2016		03/20/2017		(2,094	)		(2,109	)
RDR		(0.250	)		09/28/2016		09/28/2017		(159	)		(159	)
		1.320			11/22/2016		02/22/2017		(741	)		(742	)
		1.680			11/03/2016		02/03/2017		(710	)		(712	)
		2.130			11/03/2016		02/03/2017		(680	)		(682	)
RTA		2.055			02/04/2016		02/03/2017		(1,820	)		(1,855	)
		2.209			04/15/2016		04/13/2017		(2,566	)		(2,607	)
		2.211			03/15/2016		03/14/2017		(971	)		(989	)
		2.224			05/09/2016		05/08/2017		(2,643	)		(2,682	)
		2.227			05/12/2016		05/11/2017		(5,422	)		(5,501	)
		2.230			05/09/2016		05/08/2017		(1,474	)		(1,496	)
		2.231			03/15/2016		03/14/2017		(1,373	)		(1,398	)
		2.345			07/26/2016		07/25/2017		(2,856	)		(2,886	)
		2.543			11/14/2016		05/15/2017		(697	)		(699	)
		2.559			10/07/2016		10/06/2017		(2,678	)		(2,695	)
		2.568			11/09/2016		11/08/2017		(2,739	)		(2,750	)
		2.574			11/28/2016		05/26/2017		(634	)		(636	)
SAL		1.658			10/05/2016		01/05/2017		(2,113	)		(2,122	)
		1.761			11/15/2016		02/16/2017		(904	)		(906	)
		1.834			11/02/2016		02/02/2017		(2,153	)		(2,160	)
		1.835			01/05/2017		04/05/2017		(1,361	)		(1,361	)
SOG		1.650			11/28/2016		02/27/2017		(870	)		(871	)
		1.650			12/12/2016		02/21/2017		(812	)		(813	)
		1.700			12/14/2016		03/14/2017		(1,251	)		(1,252	)
		1.700			12/15/2016		03/15/2017		(1,412	)		(1,413	)
		2.556			11/15/2016		05/15/2017		(526	)		(528	)
		2.601			09/09/2016		03/09/2017		(1,190	)		(1,200	)
UBS		1.780			10/20/2016		01/20/2017		(830	)		(833	)
		1.830			10/20/2016		01/20/2017		(1,173	)		(1,177	)
		1.850			12/28/2016		03/14/2017		(2,489	)		(2,490	)
		2.366			11/21/2016		02/22/2017		(3,712	)		(3,722	)
		2.376			11/03/2016		02/03/2017		(1,734	)		(1,741	)
		2.387			11/09/2016		02/09/2017		(2,824	)		(2,834	)
		2.416			11/21/2016		02/22/2017		(1,762	)		(1,767	)
Total Reverse Repurchase Agreements											$	(88,139	)

⁽³⁾  The average amount of borrowings outstanding during the period ended December 31, 2016 was $(81,144) at a weighted average interest rate of 2.001%.

⁽⁴⁾  Open maturity reverse repurchase agreement.

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of December 31, 2016:

(i) Securities with an aggregate market value of $116,364 and cash of $238 have been pledged as collateral under the terms of the following master agreements as of December 31, 2016.

Counterparty	Repurchase Agreement Proceeds to be Received		Payable for Reverse Repurchase Agreements			Payable for Sale-Buyback Transactions		Total Borrowings and Other Financing Transactions			Collateral Pledged/(Received)		Net  Exposure(5)
Global/Master Repurchase Agreement
BCY	$	0	$	(16,654	)	$	0	$	(16,654	)	$	25,222	$	8,568
DEU		0		(2,954	)		0		(2,954	)		3,572		618
GSC		0		(914	)		0		(914	)		1,001		87
JPS		0		(3,025	)		0		(3,025	)		3,594		569

30 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

Counterparty	Repurchase Agreement Proceeds to be Received		Payable for Reverse Repurchase Agreements			Payable for Sale-Buyback Transactions		Total Borrowings and Other Financing Transactions			Collateral Pledged/(Received)			Net  Exposure(5)
MSC	$	0	$	(4,709	)	$	0	$	(4,709	)	$	5,978		$	1,269
RBC		0		(4,204	)		0		(4,204	)		4,875			671
RDR		0		(2,295	)		0		(2,295	)		2,319			24
RTA		0		(26,194	)		0		(26,194	)		37,145			10,951
SAL		0		(6,549	)		0		(6,549	)		6,083			(466	)
SOG		0		(6,077	)		0		(6,077	)		7,214			1,137
SSB		1,044		0			0		1,044			(1,066	)		(22	)
UBS		0		(14,564	)		0		(14,564	)		19,597			5,033
Total Borrowings and Other Financing Transactions	$	1,044	$	(88,139	)	$	0

⁽⁵⁾  Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements.

CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS

Remaining Contractual Maturity of the Agreements

	Overnight and Continuous		Up to 30 days			31-90 days			Greater Than 90 days			Total
Reverse Repurchase Agreements
Corporate Bonds & Notes	$	0	$	(2,231	)	$	(10,314	)	$	(3,204	)	$	(15,749	)
U.S. Government Agencies		0		0			(1,099	)		0			(1,099	)
Non-Agency Mortgage-Backed Securities		0		(7,075	)		(14,475	)		(7,364	)		(28,914	)
Asset-Backed Securities		0		(5,870	)		(15,897	)		(15,116	)		(36,883	)
Total Borrowings	$	0	$	(15,176	)	$	(41,785	)	$	(25,684	)	$	(82,645	)
Gross amount of recognized liabilities for reverse repurchase agreements(6)												$	(82,645	)

⁽⁶⁾  Unsettled reverse repurchase agreements liability of $(5,494) is outstanding at period end.

(j)  FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION⁽¹⁾

Reference Entity	Fixed Receive Rate	Maturity Date		Implied Credit Spread at December 31, 2016(2)		Notional Amount(3)		Market Value		Unrealized Appreciation		Variation Margin
												Asset		Liability
Sprint Communications, Inc.	5.000%		12/20/2021		3.462%	$	300		$    21	$	12	$	1	$	0

⁽¹⁾ If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽³⁾ The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

INTEREST RATE SWAPS

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Maturity Date		Notional Amount		Market Value			Unrealized Appreciation/ (Depreciation)			Variation Margin
															Asset		Liability
Receive	3-Month USD-LIBOR		1.500	%		12/21/2021	$	1,500	$	(34	)	$	(57	)	$	1	$	0
Pay	3-Month USD-LIBOR		1.750			12/21/2023		60,000		(1,678	)		(2,808	)		121		0
Receive	3-Month USD-LIBOR		1.750			12/21/2026		3,200		(178	)		(256	)		11		0
Receive	3-Month USD-LIBOR		2.500			06/15/2036		22,800		324			2,599			0		(137	)
Receive	3-Month USD-LIBOR		2.500			06/15/2046		1,600		27			224			0		(14	)
									$	(1,539	)	$	(298	)	$	133	$	(151	)
Total Swap Agreements									$	(1,518	)	$	(286	)	$	134	$	(151	)

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 31

Schedule of Investments PCM Fund, Inc. (Cont.)

FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY

The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of December 31, 2016:

Cash of $1,821 has been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2016. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements.

	Financial Derivative Assets								Financial Derivative Liabilities
	Market Value		Variation Margin Asset				Total		Market Value		Variation Margin Liability				Total
	Purchased Options		Futures		Swap Agreements				Written Options		Futures		Swap Agreements
Total Exchange-Traded or Centrally Cleared	$	0	$	0	$	134	$	134	$	0	$	0	$	(151)	$	(151)

(k)  FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION⁽¹⁾

Counterparty	Index/Tranches	Fixed Receive Rate			Maturity Date		Notional Amount(2)		Premiums (Received)			Unrealized Appreciation/ (Depreciation)		Swap Agreements, at Value(3)
														Asset		Liability
GST	ABX.HE.AA.6-1 Index		0.320	%		07/25/2045	$	6,328	$	(1,259	)	$	215	$	0	$	(1,044	)
	ABX.HE.PENAAA.7-1 Index		0.090			08/25/2037		1,650		(320	)		0		0		(320	)
									$	(1,579	)	$	215	$	0	$	(1,364	)
Total Swap Agreements									$	(1,579	)	$	215	$	0	$	(1,364	)

⁽¹⁾ If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽³⁾ The prices and resulting values for credit default swap agreements on credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY

The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged as of December 31, 2016:

(l) Securities with an aggregate market value of $1,725 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of December 31, 2016.

	Financial Derivative Assets								Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Purchased Options		Swap Agreements		Total Over the Counter		Forward Foreign Currency Contracts		Written Options		Swap Agreements			Total Over the Counter			Net Market Value of OTC Derivatives			Collateral Pledged		Net Exposure(4)
GST	$	0	$	0	$	0	$	0	$	0	$	0	$	(1,364	)	$	(1,364	)	$	(1,364	)	$	1,725	$	361

⁽⁴⁾  Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements.

32 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS

The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Fund.

Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of December 31, 2016:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Total
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared
Swap Agreements	$	0	$	1	$	0	$	0	$	133	$	134
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared
Swap Agreements	$	0	$	0	$	0	$	0	$	151	$	151
Over the counter
Swap Agreements	$	0	$	1,364	$	0	$	0	$	0	$	1,364
	$	0	$	1,364	$	0	$	0	$	151	$	1,515

The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2016:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts			Total
Net Realized Gain on Financial Derivative Instruments
Exchange-traded or centrally cleared
Swap Agreements	$	0	$	1	$	0	$	0	$	35		$	36
Over the counter
Swap Agreements	$	0	$	13	$	0	$	0	$	0		$	13
	$	0	$	14	$	0	$	0	$	35		$	49
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Swap Agreements	$	0	$	12	$	0	$	0	$	(379	)	$	(367	)
Over the counter
Swap Agreements	$	0	$	167	$	0	$	0	$	0		$	167
	$	0	$	179	$	0	$	0	$	(379	)	$	(200	)

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of December 31, 2016 in valuing the Fund’s assets and liabilities:

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2016
Investments in Securities, at Value
Bank Loan Obligations	$	0	$	4,392	$	0	$	4,392
Corporate Bonds & Notes
Banking & Finance		0		8,618		2,171		10,789
Industrials		0		16,395		1,292		17,687
Utilities		0		2,657		0		2,657
Municipal Bonds & Notes
Arkansas		0		425		0		425
West Virginia		0		760		0		760
U.S. Government Agencies		0		2,202		0		2,202
Non-Agency Mortgage-Backed Securities		0		74,415		577		74,992
Asset-Backed Securities		0		70,454		2,209		72,663
Common Stocks
Energy		111		0		0		111
Utilities		0		0		28		28
Short-Term Instruments
Repurchase Agreements		0		1,044		0		1,044
Short-Term Notes		0		4,199		0		4,199

Category and Subcategory	Level 1		Level 2			Level 3		Fair Value at 12/31/2016
U.S. Treasury Bills	$	0	$	1,725		$	0	$	1,725
Total Investments	$	111	$	187,286		$	6,277	$	193,674
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared	$	0	$	134		$	0	$	134
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared		0		(151	)		0		(151	)
Over the counter		0		(1,364	)		0		(1,364	)
	$	0	$	(1,515	)	$	0	$	(1,515	)
Total Financial Derivative Instruments	$	0	$	(1,381	)	$	0	$	(1,381	)
Totals	$	111	$	185,905		$	6,277	$	192,293

There were no significant transfers between Levels 1 and 2 during the period ended December 31, 2016.

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 33

Schedule of Investments PCM Fund, Inc. (Cont.)

December 31, 2016 (Unaudited)

The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Fund during the period ended December 31, 2016:

Category and Subcategory	Beginning Balance at 06/30/2016		Net Purchases		Net Sales			Accrued Discounts/ (Premiums)			Realized Gain/(Loss)			Net Change in Unrealized Appreciation/ (Depreciation)(1)			Transfers into Level 3		Transfers out of Level 3			Ending Balance at 12/31/2016		Net Change in Unrealized Appreciation/ (Depreciation) on Investments Held  at 12/31/2016(1)
Investments in Securities, at Value
Bank Loan Obligations	$	334	$	0	$	(3	)	$	1		$	0		$	110		$	0	$	(442	)	$	0	$	0
Corporate Bonds & Notes
Banking & Finance		2,089		0		(9	)		4			0			87			0		0			2,171		86
Industrials		1,309		0		0			1			(4	)		(14	)		0		0			1,292		(17	)
Non-Agency Mortgage-Backed Securities		696		0		(19	)		(1	)		(548	)		449			0		0			577		(50	)
Asset-Backed Securities		73		2,103		0			37			0			(4	)		0		0			2,209		(4	)
Common Stocks
Utilities		0		988		0			0			0			(960	)		0		0			28		(960	)
Warrants
Industrials		0		0		0			0			(12	)		12			0		0			0		0
Totals	$	4,501	$	3,091	$	(31	)	$	42		$	(564	)	$	(320	)	$	0	$	(442	)	$	6,277	$	(945	)

The following is a summary of significant unobservable inputs used in the fair valuations of assets and liabilities categorized within Level 3 of the fair value hierarchy:

Category and Subcategory	Ending Balance at 12/31/2016		Valuation Technique		Unobservable Inputs		Input Value(s) (% Unless Noted Otherwise)
Investments in Securities, at Value
Corporate Bonds & Notes
Banking & Finance	$	2,171		Reference Instrument		Spread movement		63.96-170.00 bps
Industrials		1,292		Proxy Pricing		Base Price		99.50
Non-Agency Mortgage-Backed Securities		577		Proxy Pricing		Base Price		6.65-99.60
Asset-Backed Securities		2,209		Proxy Pricing		Base Price		2.00-63.94
Common Stocks
Utilities		28		Other Valuation Techniques(2)		—		—
Total	$	6,277

⁽¹⁾  Any difference between Net Change in Unrealized Appreciation/(Depreciation) and Net Change in Unrealized Appreciation/(Depreciation) on Investments Held at December 31, 2016 may be due to an investment no longer held or categorized as Level 3 at period end.

⁽²⁾  Includes valuation techniques not defined in the Notes to Financial Statements as securities valued using such techniques are not considered significant to the Fund

34 PIMCO CLOSED-END FUNDS See Accompanying Notes

Schedule of Investments PIMCO Global StocksPLUS^® & Income Fund

December 31, 2016 (Unaudited)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
INVESTMENTS IN SECURITIES 156.4%
BANK LOAN OBLIGATIONS 1.2%
iHeartCommunications, Inc.
7.520% due 01/30/2019	$		200	$		163
OGX
13.000% due 04/10/2049 ^			133			63
Sequa Corp.
5.250% due 06/19/2017			1,122			1,074
Total Bank Loan Obligations (Cost $1,400)						1,300
CORPORATE BONDS & NOTES 56.8%
BANKING & FINANCE 27.4%
AGFC Capital Trust
6.000% due 01/15/2067 (j)			1,000			500
Banco Bilbao Vizcaya Argentaria S.A.
6.750% due 02/18/2020 (f)	EUR		400			403
Banco do Brasil S.A.
9.000% due 06/18/2024 (f)(j)	$		387			366
Banco Espirito Santo S.A.
4.000% due 01/21/2019 ^	EUR		200			60
4.750% due 01/15/2018 ^			100			30
Barclays Bank PLC
14.000% due 06/15/2019 (f)	GBP		100			152
Barclays PLC
6.500% due 09/15/2019 (f)	EUR		600			615
7.875% due 09/15/2022 (f)(j)	GBP		1,250			1,542
Blackstone CQP Holdco LP
9.296% due 03/19/2019	$		3,627			3,659
BNP Paribas S.A.
7.375% due 08/19/2025 (f)(j)			1,100			1,108
Cantor Commercial Real Estate Co. LP
7.750% due 02/15/2018			320			321
Communications Sales & Leasing, Inc.
8.250% due 10/15/2023 (j)			336			358
Cooperatieve Rabobank UA
11.000% due 06/30/2019 (f)(j)			1,135			1,338
Credit Agricole S.A.
7.500% due 06/23/2026 (f)(j)	GBP		700			866
7.875% due 01/23/2024 (f)	$		200			203
Exeter Finance Corp.
9.750% due 05/20/2019			900			855
HSBC Holdings PLC
6.000% due 09/29/2023 (f)	EUR		200			218
Jefferies Finance LLC
7.500% due 04/15/2021 (j)	$		967			961
Jefferies LoanCore LLC
6.875% due 06/01/2020 (j)			1,400			1,344
KGH Intermediate Holdco LLC
12.000% due 08/08/2019 (h)			1,805			1,787
Lloyds Banking Group PLC
7.625% due 06/27/2023 (f)(j)	GBP		1,600			2,070
Nationwide Building Society
10.250% due 06/29/2049 (f)			4			584
Navient Corp.
8.450% due 06/15/2018 (j)	$		811			876
OneMain Financial Holdings LLC
6.750% due 12/15/2019			8			8
PHH Corp.
6.375% due 08/15/2021 (j)			300			301
7.375% due 09/01/2019 (j)			260			281
Pinnacol Assurance
8.625% due 06/25/2034 (h)			1,100			1,100
Provident Funding Associates LP
6.750% due 06/15/2021			200			202
Rio Oil Finance Trust
9.250% due 07/06/2024 (j)			1,608			1,519
9.250% due 07/06/2024			505			477
Royal Bank of Scotland Group PLC
7.500% due 08/10/2020 (f)(j)			1,930			1,833
8.000% due 08/10/2025 (f)(j)			300			288

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Santander UK Group Holdings PLC
7.375% due 06/24/2022 (f)(j)	GBP		1,100	$		1,364
Springleaf Finance Corp.
5.250% due 12/15/2019	$		26			26
8.250% due 12/15/2020 (j)			530			578
Starwood Property Trust, Inc.
5.000% due 12/15/2021			200			203
TIG FinCo PLC
8.500% due 03/02/2020	GBP		132			167
8.750% due 04/02/2020 (j)			678			774
Toll Road Investors Partnership LP
0.000% due 02/15/2045 (d)	$		756			166
						29,503
INDUSTRIALS 25.3%
ADT Corp.
4.875% due 07/15/2032			190			158
Altice Financing S.A.
7.500% due 05/15/2026 (j)			800			834
BCD Acquisition, Inc.
9.625% due 09/15/2023			400			430
BMC Software Finance, Inc.
8.125% due 07/15/2021			89			84
Boxer Parent Co., Inc. (9.000% Cash or 9.750% PIK)
9.000% due 10/15/2019 (b)(j)			1,229			1,158
Caesars Entertainment Operating Co., Inc.
8.500% due 02/15/2020 ^(g)			3,607			3,787
9.000% due 02/15/2020 ^(g)			180			187
Chesapeake Energy Corp.
4.130% due 04/15/2019			10			10
6.250% due 01/15/2017	EUR		800			841
Concordia International Corp.
9.000% due 04/01/2022	$		100			85
Corp. GEO S.A.B. de C.V.
9.250% due 06/30/2020 ^			470			0
CVS Pass-Through Trust
5.880% due 01/10/2028 (j)			503			555
Diamond Resorts International, Inc.
10.750% due 09/01/2024 (j)			500			493
DriveTime Automotive Group, Inc.
8.000% due 06/01/2021 (j)			1,170			1,139
Enterprise Inns PLC
6.875% due 05/09/2025	GBP		10			13
Forbes Energy Services Ltd.
9.000% due 06/15/2019 ^(g)	$		292			105
Fresh Market, Inc.
9.750% due 05/01/2023 (j)			1,200			1,029
Harvest Operations Corp.
2.330% due 04/14/2021			846			830
HCA, Inc.
7.500% due 11/15/2095			300			290
iHeartCommunications, Inc.
9.000% due 03/01/2021 (j)			690			513
9.000% due 09/15/2022 (j)			1,000			739
Intelsat Luxembourg S.A.
7.750% due 06/01/2021			1,310			436
8.125% due 06/01/2023			54			17
Intrepid Aviation Group Holdings LLC
6.875% due 02/15/2019			1,890			1,701
Kinder Morgan Energy Partners LP
6.950% due 01/15/2038			100			116
Kinder Morgan, Inc.
7.750% due 01/15/2032			300			368
MDC Partners, Inc.
6.500% due 05/01/2024			200			181
Millar Western Forest Products Ltd.
8.500% due 04/01/2021			30			17
N&W Global Vending SpA
7.000% due 10/15/2023	EUR		400			438
OGX Austria GmbH
8.375% due 04/01/2022 ^	$		2,050			0
8.500% due 06/01/2018 ^			1,400			0

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Prime Security Services Borrower LLC
9.250% due 05/15/2023 (j)	$		460	$		502
Rowan Cos., Inc.
7.375% due 06/15/2025			100			102
Safeway, Inc.
7.250% due 02/01/2031			350			343
Scientific Games International, Inc.
10.000% due 12/01/2022			480			480
Sequa Corp.
7.000% due 12/15/2017			1,166			653
SFR Group S.A.
7.375% due 05/01/2026 (j)			1,327			1,360
Spanish Broadcasting System, Inc.
12.500% due 04/15/2017 (j)			527			529
Tembec Industries, Inc.
9.000% due 12/15/2019 (j)			2,600			2,444
Transocean, Inc.
9.000% due 07/15/2023 (j)			199			205
UAL Pass-Through Trust
6.636% due 01/02/2024 (j)			1,415			1,527
Unique Pub Finance Co. PLC
5.659% due 06/30/2027	GBP		668			874
Westmoreland Coal Co.
8.750% due 01/01/2022 (j)	$		1,815			1,665
						27,238
UTILITIES 4.1%
Frontier Communications Corp.
11.000% due 09/15/2025			150			155
Illinois Power Generating Co.
6.300% due 04/01/2020 ^			480			173
7.950% due 06/01/2032 ^			800			288
Odebrecht Drilling Norbe Ltd.
6.350% due 06/30/2022			715			327
Odebrecht Offshore Drilling Finance Ltd.
6.625% due 10/01/2023 (h)			769			229
Petrobras Global Finance BV
6.750% due 01/27/2041 (j)			1,796			1,518
6.850% due 06/05/2115			263			214
6.875% due 01/20/2040 (j)			551			476
7.875% due 03/15/2019 (j)			126			135
Sierra Hamilton LLC
12.250% due 12/15/2018			100			66
Sprint Capital Corp.
6.900% due 05/01/2019			50			53
Sprint Communications, Inc.
7.000% due 08/15/2020 (j)			750			797
						4,431
Total Corporate Bonds & Notes (Cost $66,059)						61,172
CONVERTIBLE BONDS & NOTES 0.6%
INDUSTRIALS 0.6%
DISH Network Corp.
3.375% due 08/15/2026			600			686
Total Convertible Bonds & Notes (Cost $600)						686
MUNICIPAL BONDS & NOTES 1.5%
ILLINOIS 0.1%
Chicago, Illinois General Obligation Bonds, Series 2015
7.375% due 01/01/2033			40			42
7.750% due 01/01/2042			70			71
						113
WEST VIRGINIA 1.4%
Tobacco Settlement Finance Authority, West Virginia Revenue Bonds, Series 2007
7.467% due 06/01/2047			1,685			1,525
Total Municipal Bonds & Notes (Cost $1,697)						1,638

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 35

Schedule of Investments PIMCO Global StocksPLUS^® & Income Fund (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
U.S. GOVERNMENT AGENCIES 2.4%
Fannie Mae
5.294% due 03/25/2037 (a)	$		518	$		85
5.394% due 11/25/2039 (a)			444			69
5.544% due 01/25/2038 (a)			677			88
5.624% due 03/25/2037 (a)			510			90
5.644% due 12/25/2037 (a)(j)			799			118
5.654% due 06/25/2037 (a)			228			31
5.684% due 04/25/2037 (a)			458			81
5.694% due 04/25/2037 (a)(j)			1,245			220
5.844% due 11/25/2035 (a)			209			29
6.044% due 11/25/2036 (a)(j)			2,461			477
6.444% due 02/25/2037 (a)			441			88
7.000% due 12/25/2023			127			141
7.500% due 06/01/2032			44			46
7.800% due 06/25/2026			3			3
10.055% due 12/25/2042			88			101
13.141% due 08/25/2022			146			183
Freddie Mac
0.701% due 10/25/2020 (a)(j)			10,335			224
5.736% due 03/15/2037 (a)			871			154
5.866% due 09/15/2036 (a)			519			89
5.876% due 09/15/2036 (a)(j)			1,180			212
7.000% due 08/15/2023			6			7
Total U.S. Government Agencies (Cost $2,392)						2,536
U.S. TREASURY OBLIGATIONS 0.9%
U.S. Treasury Notes
1.500% due 08/31/2018 (l)(n)			1,000			1,006
Total U.S. Treasury Obligations (Cost $998)						1,006
NON-AGENCY MORTGAGE-BACKED SECURITIES 58.7%
Banc of America Alternative Loan Trust
15.277% due 09/25/2035 ^(j)			1,925			2,123
Banc of America Funding Trust
2.981% due 12/20/2034 (j)			370			344
3.057% due 03/20/2036 (j)			680			629
5.846% due 01/25/2037 ^			280			239
Banc of America Mortgage Trust
6.000% due 07/25/2046 ^			3			3
Banc of America/Merrill Lynch Commercial Mortgage, Inc.
5.765% due 03/11/2041 (j)			1,856			1,949
BCRR Trust
5.858% due 07/17/2040 (j)			3,000			3,004
Bear Stearns Adjustable Rate Mortgage Trust
3.145% due 07/25/2036 ^			334			313
Bear Stearns ALT-A Trust
3.044% due 04/25/2035			317			280
3.118% due 11/25/2035 ^			180			149
3.149% due 09/25/2035			198			171
Bear Stearns Asset-Backed Securities Trust
21.008% due 03/25/2036 ^(j)			1,855			1,914
Bear Stearns Commercial Mortgage Securities Trust
5.394% due 02/11/2041 (j)			1,000			989
Bear Stearns Structured Products, Inc. Trust
3.006% due 01/26/2036 (j)			1,047			825
3.107% due 12/26/2046			420			326
BRAD Resecuritization Trust
2.181% due 03/12/2021			1,947			129
6.550% due 03/12/2021			364			355
CBA Commercial Small Balance Commercial Mortgage
5.540% due 01/25/2039 ^			536			397
Chevy Chase Funding LLC Mortgage-Backed Certificates
1.056% due 08/25/2035			163			147
1.096% due 10/25/2034			12			11
Citigroup Mortgage Loan Trust, Inc.
3.044% due 03/25/2037 ^(j)			578			496
3.818% due 11/25/2035			1,799			1,008
Citigroup/Deutsche Bank Commercial Mortgage Trust
5.398% due 12/11/2049 (j)			733			639
Commercial Mortgage Trust
0.132% due 10/10/2046 (a)(j)			77,000			697
6.139% due 07/10/2046 (j)			760			819

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Countrywide Alternative Loan Trust
0.996% due 12/25/2046 ^	$		197	$		95
1.086% due 10/25/2035 (j)			992			784
1.106% due 05/25/2036 ^(j)			2,073			1,032
3.036% due 10/25/2035 ^			222			184
3.102% due 02/25/2037 ^			314			273
5.500% due 08/25/2034 (j)			563			557
5.500% due 02/25/2036 ^			30			26
5.500% due 03/25/2036 ^			618			484
6.250% due 09/25/2034			88			89
6.394% due 07/25/2036 (a)(j)			1,494			395
17.721% due 07/25/2035 (j)			1,191			1,435
Countrywide Home Loan Mortgage Pass-Through Trust
0.996% due 03/25/2036			239			193
1.396% due 03/25/2035 (j)			1,132			961
1.536% due 02/25/2035			148			120
2.841% due 03/25/2037 ^(j)			450			348
2.867% due 10/20/2035 ^			180			151
3.005% due 10/20/2035 ^			241			211
3.062% due 10/20/2035 (j)			435			380
3.172% due 08/25/2034			249			223
3.309% due 02/20/2036 ^(j)			1,554			502
5.500% due 08/25/2035 ^			39			36
Credit Suisse Commercial Mortgage Trust
5.685% due 02/15/2039			130			121
6.062% due 02/15/2041 (j)			2,000			2,041
Credit Suisse Mortgage Capital Mortgage-Backed Trust
6.000% due 11/25/2036			289			267
DBUBS Mortgage Trust
4.652% due 11/10/2046			700			477
First Horizon Alternative Mortgage Securities Trust
2.800% due 11/25/2036 ^(j)			552			428
First Horizon Mortgage Pass-Through Trust
2.900% due 01/25/2037 ^(j)			973			855
GE Commercial Mortgage Corp. Trust
5.606% due 12/10/2049 (j)			1,700			1,702
GMAC Mortgage Corp. Loan Trust
3.500% due 06/25/2034			153			152
GS Mortgage Securities Trust
6.064% due 08/10/2043 (j)			730			740
GSR Mortgage Loan Trust
3.135% due 04/25/2035			376			363
3.193% due 05/25/2035			152			140
5.500% due 06/25/2036 ^			39			37
HarborView Mortgage Loan Trust
1.336% due 04/19/2034			30			27
2.374% due 11/19/2034			143			113
3.224% due 08/19/2036 ^			23			21
3.229% due 02/25/2036 ^			56			46
HSI Asset Loan Obligation Trust
3.201% due 01/25/2037 ^(j)			481			399
IndyMac Mortgage Loan Trust
0.862% due 06/25/2037 ^(j)			1,746			1,270
1.036% due 03/25/2035			46			41
2.869% due 06/25/2037 ^(j)			734			532
JPMBB Commercial Mortgage Securities Trust
0.119% due 11/15/2045 (a)(j)			76,047			1,318
JPMorgan Chase Commercial Mortgage Securities Corp. Pass-Through Trust
5.575% due 05/15/2041 (j)			1,500			1,514
JPMorgan Mortgage Trust
2.987% due 04/25/2037 ^(j)			1,107			875
5.500% due 01/25/2036 ^			73			64
5.500% due 06/25/2037 ^			53			51
Luminent Mortgage Trust
0.956% due 10/25/2046 (j)			785			676
MASTR Adjustable Rate Mortgages Trust
3.012% due 11/25/2035 ^			904			683
3.307% due 10/25/2034			294			259
Merrill Lynch Alternative Note Asset Trust
0.826% due 01/25/2037			302			133
Merrill Lynch Mortgage Trust
5.826% due 06/12/2050 (j)			1,600			1,554
Morgan Stanley Capital Trust
5.569% due 12/15/2044 (j)			1,149			1,172

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Opteum Mortgage Acceptance Corp. Trust
1.026% due 07/25/2036	$		329	$		207
Prime Mortgage Trust
5.794% due 11/25/2036 (a)			4,938			547
Provident Funding Mortgage Loan Trust
3.132% due 10/25/2035			117			117
RBSSP Resecuritization Trust
5.000% due 09/26/2036 (j)			2,385			1,409
Residential Accredit Loans, Inc. Trust
3.626% due 12/26/2034 ^			309			237
4.137% due 01/25/2036 ^(j)			1,046			839
6.000% due 09/25/2035 (j)			540			404
6.000% due 08/25/2036 ^			358			303
Residential Asset Mortgage Products Trust
7.500% due 12/25/2031			106			106
Royal Bank of Scotland Capital Funding Trust
6.068% due 02/17/2051 (j)			3,000			3,024
Structured Adjustable Rate Mortgage Loan Trust
1.996% due 05/25/2035 ^(j)			2,417			1,714
3.013% due 01/25/2036 ^			476			360
3.139% due 09/25/2036 ^			443			321
3.312% due 04/25/2036 ^(j)			512			403
3.317% due 11/25/2036 ^			148			143
3.364% due 09/25/2035			110			91
Structured Asset Mortgage Investments Trust
0.986% due 02/25/2036 (j)			490			416
1.036% due 02/25/2036 ^			390			330
Suntrust Adjustable Rate Mortgage Loan Trust
3.234% due 01/25/2037 ^			164			153
Theatre Hospitals PLC
3.401% due 10/15/2031 (j)	GBP		1,035			1,214
Wachovia Bank Commercial Mortgage Trust
5.743% due 01/15/2041 (j)	$		1,500			1,462
5.969% due 02/15/2051 (j)			2,500			2,539
WaMu Commercial Mortgage Securities Trust
5.752% due 03/23/2045 (j)			625			625
WaMu Mortgage Pass-Through Certificates Trust
1.297% due 01/25/2047			130			118
2.676% due 12/25/2036 ^(j)			564			521
4.341% due 07/25/2037 ^			150			138
Washington Mutual Mortgage Pass-Through Certificates Trust
1.337% due 04/25/2047 ^			735			58
Wells Fargo Mortgage-Backed Securities Trust
6.000% due 03/25/2037 ^(j)			331			329
Wells Fargo-RBS Commercial Mortgage Trust
0.336% due 12/15/2046 (a)			30,000			618
Total Non-Agency Mortgage-Backed Securities (Cost $52,015)						63,252
ASSET-BACKED SECURITIES 12.2%
Apidos CLO
0.000% due 07/22/2026			500			286
Bear Stearns Asset-Backed Securities Trust
6.500% due 08/25/2036 ^(j)			675			431
Bombardier Capital Mortgage Securitization Corp.
7.830% due 06/15/2030			1,424			694
Carrington Mortgage Loan Trust
0.906% due 08/25/2036			100			68
Centex Home Equity Loan Trust
1.206% due 06/25/2035			236			216
Citigroup Mortgage Loan Trust, Inc.
0.916% due 12/25/2036 (j)			1,778			1,106
0.916% due 01/25/2037			213			124
5.972% due 01/25/2037 ^(j)			662			470
Conseco Finance Securitizations Corp.
7.960% due 05/01/2031			430			312
Countrywide Asset-Backed Certificates
0.886% due 12/25/2036 ^			1,620			1,602
0.906% due 04/25/2047 (j)			1,376			1,274
1.306% due 09/25/2034			104			101
5.253% due 10/25/2032 ^			918			805

36 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
EMC Mortgage Loan Trust
1.696% due 05/25/2039	$		359	$		344
Lehman XS Trust
5.012% due 05/25/2037 ^			270			386
5.420% due 11/25/2035 ^			206			207
MASTR Asset-Backed Securities Trust
5.233% due 11/25/2035			45			45
Morgan Stanley ABS Capital, Inc. Trust
0.816% due 05/25/2037			150			97
Residential Asset Mortgage Products Trust
1.436% due 03/25/2033			54			50
5.572% due 06/25/2032			83			81
Soundview Home Loan Trust
0.816% due 11/25/2036			207			85
South Coast Funding Ltd.
1.124% due 01/06/2041			487			124
1.124% due 01/06/2041 (j)			13,732			3,495
Structured Asset Securities Corp. Mortgage Loan Trust
0.906% due 05/25/2036 (j)			307			299
1.056% due 06/25/2035 (j)			446			397
Washington Mutual Asset-Backed Certificates Trust
0.816% due 10/25/2036			117			54
Total Asset-Backed Securities (Cost $12,901)						13,153
SOVEREIGN ISSUES 0.8%
Costa Rica Government International Bond
7.000% due 04/04/2044 (j)			300			275
Republic of Greece Government International Bond
3.000% due 02/24/2023	EUR		33			29
3.000% due 02/24/2024			33			28
3.000% due 02/24/2025			33			27
3.000% due 02/24/2026			33			27

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
3.000% due 02/24/2027	EUR		33	$		27
3.000% due 02/24/2028			33			26
3.000% due 02/24/2029			33			25
3.000% due 02/24/2030			33			25
3.000% due 02/24/2031			33			24
3.000% due 02/24/2032			33			24
3.000% due 02/24/2033			33			23
3.000% due 02/24/2034			33			23
3.000% due 02/24/2035			33			22
3.000% due 02/24/2036			33			22
3.000% due 02/24/2037			33			22
3.000% due 02/24/2038			33			22
3.000% due 02/24/2039			33			22
3.000% due 02/24/2040			33			22
3.000% due 02/24/2041			33			22
3.000% due 02/24/2042			33			22
4.750% due 04/17/2019			100			100
Total Sovereign Issues (Cost $820)						859
		SHARES
COMMON STOCKS 0.1%
ENERGY 0.0%
OGX Petroleo e Gas S.A. SP - ADR			54,706			0
FINANCIALS 0.1%
TIG FinCo PLC (h)			103,539			95
Total Common Stocks (Cost $153)						95
SHORT-TERM INSTRUMENTS 21.2%
REPURCHASE AGREEMENTS (i) 1.4%
						1,456

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
SHORT-TERM NOTES 9.5%
Federal Home Loan Bank
0.370% due 01/27/2017 (d)(e)	$		600	$		600
0.396% due 01/06/2017 (d)(e)			1,300			1,300
0.446% due 01/12/2017 (d)(e)			400			400
0.457% due 01/20/2017 (d)(e)			2,700			2,699
0.477% due 02/14/2017 - 02/28/2017 (d)(e)			2,800			2,798
0.487% due 01/23/2017 (d)(e)			600			600
0.492% due 02/13/2017 (d)(e)			1,300			1,299
Freddie Mac
0.426% due 02/07/2017 (d)(e)			500			500
						10,196
U.S. TREASURY BILLS 10.3%
0.484% due 03/02/2017 - 03/16/2017 (c)(d)(l)(n)			11,134			11,125
Total Short-Term Instruments (Cost $22,777)						22,777
Total Investments in Securities (Cost $161,812)						168,474
Total Investments 156.4% (Cost $161,812)				$		168,474
Financial Derivative Instruments (k)(m) 0.6% (Cost or Premiums, net $(1,446))						616
Other Assets and Liabilities, net (57.0)%						(61,352	)
Net Assets 100.0%				$		107,738

NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*, EXCEPT NUMBER OF CONTRACTS AND UNITS):

* A zero balance may reflect actual amounts rounding to less than one thousand.

^ Security is in default.

(a) Interest only security.

(b) Payment in-kind security.

(c) Coupon represents a weighted average yield to maturity.

(d) Zero coupon security.

(e) Coupon represents a yield to maturity.

(f) Perpetual maturity; date shown, if applicable, represents next contractual call date.

(g) Security is subject to a forbearance agreement entered into by the Fund which forbears the Fund from taking action to, among other things, accelerate and collect payments on the subject note with respect to specified events of default.

(h)  RESTRICTED SECURITIES:

Issuer Description	Acquisition Date		Cost		Market Value		Market Value as Percentage of Net Assets
KGH Intermediate Holdco LLC 12.000% due 08/08/2019		08/07/2014		$    1,784	$	1,787		1.66	%
Odebrecht Offshore Drilling Finance Ltd. 6.625% due 10/01/2023		06/23/2015 - 06/24/2015		607		229		0.21
Pinnacol Assurance 8.625% due 06/25/2034		06/23/2014		1,100		1,100		1.02
TIG FinCo PLC		04/02/2015		153		95		0.09
				$    3,644	$	3,211		2.98	%

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 37

Schedule of Investments PIMCO Global StocksPLUS^® & Income Fund (Cont.)

BORROWINGS AND OTHER FINANCING TRANSACTIONS

(i)  REPURCHASE AGREEMENTS:

Counterparty	Lending Rate			Settlement Date		Maturity Date		Principal Amount		Collateralized By	Collateral (Received)			Repurchase Agreements, at Value		Repurchase Agreement Proceeds to be Received(1)
SSB		0.010	%		12/30/2016		01/03/2017	$	1,356	U.S. Treasury Notes 3.500% due 02/15/2018(2)	$	(1,384	)	$	1,356	$	1,356
JPS		0.610			12/30/2016		01/03/2017		100	Ginnie Mae 4.000% due 11/20/2046		(105	)		100		100
Total Repurchase Agreements											$	(1,489	)	$	1,456	$	1,456

⁽¹⁾  Includes accrued interest.

⁽²⁾ Collateral is held in custody by the counterparty.

REVERSE REPURCHASE AGREEMENTS:

Counterparty	Borrowing Rate(3)			Borrowing Date		Maturity Date			Amount Borrowed(3)				Payable for Reverse Repurchase Agreements
BCY		1.150	%		12/16/2016		TBD	(4)		$	(2,480	)	$	(2,481	)
		1.632			10/24/2016		01/24/2017				(276	)		(277	)
		1.750			11/17/2016		02/17/2017				(482	)		(483	)
		1.900			11/15/2016		02/15/2017				(482	)		(483	)
		2.354			10/03/2016		01/03/2017				(945	)		(951	)
		2.382			10/24/2016		01/24/2017				(1,852	)		(1,861	)
		2.406			11/17/2016		02/17/2017				(1,433	)		(1,438	)
		2.497			01/03/2017		04/03/2017				(920	)		(920	)
BOS		2.820			11/23/2016		02/23/2017				(2,228	)		(2,235	)
		2.913			12/15/2016		03/15/2017				(1,256	)		(1,258	)
BPG		2.731			03/16/2016		03/16/2017				(929	)		(950	)
BPS		1.581			10/24/2016		01/24/2017				(820	)		(823	)
		1.720			11/08/2016		02/08/2017				(886	)		(888	)
		1.720			11/22/2016		02/08/2017				(430	)		(431	)
DBL		3.103			12/12/2016		12/12/2017				(2,001	)		(2,005	)
DEU		1.750			11/17/2016		02/09/2017				(1,695	)		(1,699	)
		1.850			11/23/2016		02/23/2017				(5,465	)		(5,477	)
FOB		2.445			12/14/2016		01/17/2017				(973	)		(974	)
JPS		1.976			10/11/2016		01/06/2017				(1,843	)		(1,851	)
		2.130			11/29/2016		03/01/2017				(1,264	)		(1,267	)
MSC		1.700			12/07/2016		03/07/2017				(1,577	)		(1,579	)
		1.850			12/07/2016		03/07/2017				(1,063	)		(1,064	)
		1.900			11/02/2016		02/02/2017				(2,572	)		(2,580	)
		2.231			08/05/2016		02/06/2017				(1,838	)		(1,844	)
PAR		0.800			11/21/2016		01/23/2017			GBP	(565	)		(697	)
		0.900			11/21/2016		01/23/2017				(877	)		(1,081	)
RBC		2.550			09/13/2016		03/13/2017			$	(1,343	)		(1,354	)
		2.580			11/23/2016		05/23/2017				(1,434	)		(1,438	)
		2.630			11/23/2016		05/23/2017				(1,130	)		(1,133	)
RDR		1.660			11/22/2016		02/22/2017				(2,340	)		(2,345	)
		2.260			01/14/2016		01/13/2017				(1,040	)		(1,063	)
RTA		2.065			02/09/2016		02/03/2017				(3,467	)		(3,532	)
		2.207			03/11/2016		03/10/2017				(1,718	)		(1,749	)
		2.230			05/06/2016		05/05/2017				(2,046	)		(2,077	)
		2.230			07/01/2016		06/30/2017				(1,441	)		(1,458	)
SAL		1.756			11/18/2016		02/21/2017				(605	)		(606	)
		1.780			10/17/2016		01/17/2017				(579	)		(581	)
SOG		1.600			10/14/2016		01/13/2017				(1,315	)		(1,320	)
		1.650			11/21/2016		02/21/2017				(1,995	)		(1,999	)
		1.700			12/15/2016		03/15/2017				(970	)		(971	)
UBS		0.900			10/13/2016		01/13/2017			GBP	(2,279	)		(2,815	)
		1.100			11/18/2016		02/20/2017				(522	)		(644	)
		1.310			10/14/2016		01/20/2017				(803	)		(992	)
		1.650			10/28/2016		01/30/2017			$	(1,522	)		(1,527	)
		1.730			11/28/2016		02/28/2017				(1,395	)		(1,397	)
		1.740			11/09/2016		02/09/2017				(265	)		(266	)
		1.740			12/02/2016		03/02/2017				(2,424	)		(2,428	)
		1.780			11/30/2016		03/02/2017				(958	)		(960	)
		1.850			12/28/2016		03/14/2017				(1,725	)		(1,726	)
		1.880			11/30/2016		03/02/2017				(889	)		(891	)
		2.324			07/05/2016		01/05/2017				(3,341	)		(3,380	)

38 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

Counterparty	Borrowing Rate(3)			Borrowing Date		Maturity Date		Amount Borrowed(3)				Payable for Reverse Repurchase Agreements
		2.424	%		07/05/2016		01/05/2017		$	(762	)	$	(771	)
		2.474			07/05/2016		01/05/2017			(1,064	)		(1,077	)
Total Reverse Repurchase Agreements												$	(78,097	)

⁽³⁾ The average amount of borrowings outstanding during the period ended December 31, 2016 was $(78,276) at a weighted average interest rate of 1.833%.

⁽⁴⁾ Open maturity reverse repurchase agreement.

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of December 31, 2016:

(j) Securities with an aggregate market value of $97,086 and cash of $10 have been pledged as collateral under the terms of the following master agreements as of December 31, 2016.

Counterparty	Repurchase Agreement Proceeds to be Received		Payable for Reverse Repurchase Agreements			Payable for Sale-Buyback Transactions		Total Borrowings and Other Financing Transactions			Collateral Pledged/(Received)			Net  Exposure(5)
Global/Master Repurchase Agreement
BCY	$	0	$	(8,894	)	$	0	$	(8,894	)	$	11,257		$	2,363
BOS		0		(3,493	)		0		(3,493	)		5,259			1,766
BPG		0		(950	)		0		(950	)		961			11
BPS		0		(2,142	)		0		(2,142	)		2,425			283
DBL		0		(2,005	)		0		(2,005	)		3,495			1,490
DEU		0		(7,176	)		0		(7,176	)		8,749			1,573
FOB		0		(974	)		0		(974	)		1,462			488
JPS		100		(3,118	)		0		(3,018	)		3,450			432
MSC		0		(7,067	)		0		(7,067	)		8,416			1,349
PAR		0		(1,778	)		0		(1,778	)		2,230			452
RBC		0		(3,925	)		0		(3,925	)		5,210			1,285
RDR		0		(3,408	)		0		(3,408	)		3,571			163
RTA		0		(8,816	)		0		(8,816	)		11,289			2,473
SAL		0		(1,187	)		0		(1,187	)		1,437			250
SOG		0		(4,290	)		0		(4,290	)		4,809			519
SSB		1,356		0			0		1,356			(1,384	)		(28	)
UBS		0		(18,874	)		0		(18,874	)		22,891			4,017
Total Borrowings and Other Financing Transactions	$	1,456	$	(78,097	)	$	0

⁽⁵⁾  Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements.

CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS

Remaining Contractual Maturity of the Agreements

	Overnight and Continuous		Up to 30 days			31-90 days			Greater Than 90 days			Total
Reverse Repurchase Agreements
Corporate Bonds & Notes	$	0	$	(7,440	)	$	(20,477	)	$	(2,481	)	$	(30,398	)
U.S. Government Agencies		0		(1,100	)		0			0			(1,100	)
Non-Agency Mortgage-Backed Securities		0		(13,501	)		(23,801	)		(6,106	)		(43,408	)
Asset-Backed Securities		0		0			0			(2,005	)		(2,005	)
Sovereign Issues		0		0			(266	)		0			(266	)
Total Borrowings	$	0	$	(22,041	)	$	(44,544	)	$	(10,592	)	$	(77,177	)
Gross amount of recognized liabilities for reverse repurchase agreements(6)												$	(77,177	)

⁽⁶⁾ Unsettled reverse repurchase agreements liability of $(920) is outstanding at period end.

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 39

Schedule of Investments PIMCO Global StocksPLUS^® & Income Fund (Cont.)

(k)  FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED

PURCHASED OPTIONS:

OPTIONS ON EXCHANGE-TRADED FUTURES CONTRACTS

Description	Strike Price		Expiration Date		# of Contracts		Cost		Market Value
Put - CME S&P 500 Index January Futures		2,145.000		01/20/2017		91	$	182	$	134
Total Purchased Options							$	182	$	134

WRITTEN OPTIONS:

OPTIONS ON EXCHANGE-TRADED FUTURES CONTRACTS

Description	Strike Price		Expiration Date		# of Contracts		Premiums (Received)			Market Value
Call - CME S&P 500 Index January Futures		2,255.000		01/20/2017		91	$	(728	)	$	(330	)
Total Written Options							$	(728	)	$	(330	)

FUTURES CONTRACTS:

Description	Type		Expiration Month		# of Contracts		Unrealized (Depreciation)			Variation Margin
										Asset		Liability
E-mini S&P 500 Index March Futures		Long		03/2017		28	$	(16	)	$	0	$	(13	)
S&P 500 Index March Futures		Long		03/2017		90		(172	)		0		(200	)
Total Futures Contracts							$	(188	)	$	0	$	(213	)

SWAP AGREEMENTS:

INTEREST RATE SWAPS

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Maturity Date		Notional Amount			Market Value			Unrealized Appreciation/ (Depreciation)			Variation Margin
																Asset		Liability
Pay	1-Year BRL-CDI		12.055	%		01/04/2021		BRL	3,600	$	7		$	1		$	0	$	0
Pay	3-Month CAD-Bank Bill		3.300			06/19/2024		CAD	4,900		424			(143	)		12		0
Receive	3-Month CAD-Bank Bill		3.500			06/20/2044			1,600		(299	)		98			0		(14	)
Pay	3-Month USD-LIBOR		2.750			06/19/2023		$	308,500		11,819			(15,557	)		579		0
Pay	3-Month USD-LIBOR		3.000			06/18/2024			19,700		1,096			(1,101	)		47		0
Receive	3-Month USD-LIBOR		1.750			12/21/2026			269,400		14,244			19,436			0		(896	)
										$	27,291		$	2,734		$	638	$	(910	)
Total Swap Agreements										$	27,291		$	2,734		$	638	$	(910	)

FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY

The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of December 31, 2016:

(l) Securities with an aggregate market value of $11,084 and cash of $17,487 have been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2016. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements.

	Financial Derivative Assets								Financial Derivative Liabilities
	Market Value		Variation Margin Asset				Total		Market Value			Variation Margin Liability						Total
	Purchased Options		Futures		Swap Agreements				Written Options			Futures			Swap Agreements
Total Exchange-Traded or Centrally Cleared	$	134	$	0	$	638	$	772	$	(330	)	$	(213	)	$	(910	)	$	(1,453	)

40 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

(m)  FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER

FORWARD FOREIGN CURRENCY CONTRACTS:

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized  Appreciation/ (Depreciation)
							Asset		Liability
AZD		01/2017	$	11	AUD	15	$	0	$	0
BOA		01/2017		2,967	EUR	2,853		36		0
		01/2017		84	GBP	67		0		(1	)
		01/2017		223	JPY	25,362		0		(6	)
		02/2017	EUR	2,853	$	2,971		0		(36	)
BPS		01/2017		3,313		3,514		26		0
		01/2017	GBP	2,774		3,469		50		0
		01/2017	$	73	EUR	69		0		(1	)
CBK		01/2017	DKK	69	$	10		0		0
		01/2017	JPY	2,478		21		0		0
		01/2017	$	31	AUD	42		0		(1	)
		01/2017		271	EUR	255		0		(3	)
		02/2017	SEK	91	$	10		0		0
GLM		01/2017	AUD	59		43		0		0
		01/2017	GBP	26		32		0		0
		01/2017	JPY	26,435		226		0		0
		01/2017	$	162	EUR	155		1		0
		01/2017		129	JPY	15,176		1		0
		02/2017	CHF	11	$	11		0		0
		02/2017	$	32	CHF	32		0		0
HUS		01/2017	GBP	68	$	85		2		0
		01/2017	$	22	EUR	21		0		0
IND		01/2017		3,376	GBP	2,757		22		0
		02/2017	GBP	2,757	$	3,378		0		(23	)
JPM		01/2017	CAD	37		28		0		0
		01/2017	EUR	299		312		0		(3	)
		01/2017	$	22	AUD	29		0		(1	)
		01/2017		117	EUR	110		0		(1	)
		01/2017		75	GBP	61		0		0
MSB		01/2017	CAD	29	$	22		1		0
NAB		01/2017	$	11	JPY	1,290		0		0
RBC		01/2017	GBP	174	$	215		1		0
		01/2017	$	21	EUR	20		0		0
		01/2017		63	GBP	50		0		(2	)
		02/2017		11	CHF	11		0		0
SCX		01/2017		131	GBP	107		1		0
		01/2017		21	HKD	163		0		0
		02/2017	CHF	75	$	74		1		0
		02/2017	$	11	CHF	11		0		0
TOR		01/2017	HKD	248	$	32		0		0
UAG		01/2017	$	138	EUR	129		0		(2	)
		02/2017		53	CHF	54		0		0
Total Forward Foreign Currency Contracts							$	142	$	(80	)

WRITTEN OPTIONS:

TRANSACTIONS IN WRITTEN CALL AND PUT OPTIONS FOR THE PERIOD ENDED DECEMBER 31, 2016:

	Balance at Beginning of Period			Sales			Closing Buys			Expirations		Exercised		Balance at End of Period
# of Contracts		95			547			(551	)		0		0		91
Premiums	$	(917	)	$	(3,871	)	$	4,060		$	0	$	0	$	(728	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON ASSET-BACKED SECURITIES - SELL PROTECTION⁽¹⁾

Counterparty	Reference Obligation	Fixed Receive Rate		Maturity Date		Notional Amount(2)		Premiums Paid/(Received)		Unrealized (Depreciation)			Swap Agreements, at  Value(3)
													Asset		Liability
BOA	Long Beach Mortgage Loan Trust 1-Month USD-LIBOR plus 5.250% due 07/25/2033		6.250%		07/25/2033	$	384		$    0	$	(19	)	$	0	$	(19	)

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 41

Schedule of Investments PIMCO Global StocksPLUS^® & Income Fund (Cont.)

CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION⁽¹⁾

Counterparty	Index/Tranches	Fixed Receive Rate			Maturity Date		Notional Amount(2)		Premiums (Received)			Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value(3)
															Asset		Liability
GST	ABX.HE.AA.6-1 Index		0.320	%		07/25/2045	$	2,812		$    (559	)	$	95		$	0	$	(464	)
	ABX.HE.PENAAA.7-1 Index		0.090			08/25/2037		1,760		(341	)		(1	)		0		(342	)
										$    (900	)	$	94		$	0	$	(806	)

⁽¹⁾ If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽³⁾ The prices and resulting values for credit default swap agreements on asset-backed securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

TOTAL RETURN SWAPS ON EQUITY INDICES

Counterparty	Pay/Receive(4)	Underlying Reference	# of Units		Financing Rate	Maturity Date		Notional Amount	Premiums Paid/(Received)			Unrealized Appreciation		Swap Agreements, at Value
														Asset		Liability
FBF	Receive	NDDUEAFE Index		2,023	3-Month USD-LIBOR less a specified spread		05/11/2017	$      9,538	$	0		$	321	$	321	$	0
	Receive	NDDUEAFE Index		8,937	3-Month USD-LIBOR less a specified spread		06/07/2017	41,806		0			1,739		1,739		0
									$	0		$	2,060	$	2,060	$	0
Total Swap Agreements									$	(900	)	$	2,135	$	2,060	$	(825	)

⁽⁴⁾ Receive represents that the Fund receives payments for any positive return on the underlying reference. The Fund makes payments for any negative return on such underlying reference. Pay represents that the Fund receives payments for any negative return on the underlying reference. The Fund makes payments for any positive return on such underlying reference.

FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY

The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged/(received) as of December 31, 2016:

(n) Securities with an aggregate market value of $1,041 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of December 31, 2016.

	Financial Derivative Assets								Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Purchased Options		Swap Agreements		Total Over the Counter		Forward Foreign Currency Contracts			Written Options		Swap Agreements			Total Over the Counter			Net Market Value of OTC Derivatives			Collateral Pledged/ (Received)			Net Exposure(5)
BOA	$	36	$	0	$	0	$	36	$	(43	)	$	0	$	(19	)	$	(62	)	$	(26	)	$	0		$	(26	)
BPS		76		0		0		76		(1	)		0		0			(1	)		75			0			75
CBK		0		0		0		0		(4	)		0		0			(4	)		(4	)		0			(4	)
FBF		0		0		2,060		2,060		0			0		0			0			2,060			(1,770	)		290
GLM		2		0		0		2		0			0		0			0			2			0			2
GST		0		0		0		0		0			0		(806	)		(806	)		(806	)		1,041			235
HUS		2		0		0		2		0			0		0			0			2			0			2
IND		22		0		0		22		(23	)		0		0			(23	)		(1	)		0			(1	)
JPM		0		0		0		0		(5	)		0		0			(5	)		(5	)		0			(5	)
MSB		1		0		0		1		0			0		0			0			1			0			1
RBC		1		0		0		1		(2	)		0		0			(2	)		(1	)		0			(1	)
SCX		2		0		0		2		0			0		0			0			2			0			2
UAG		0		0		0		0		(2	)		0		0			(2	)		(2	)		0			(2	)
Total Over the Counter	$	142	$	0	$	2,060	$	2,202	$	(80	)	$	0	$	(825	)	$	(905	)

⁽⁵⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements.

42 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS

The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Fund.

Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of December 31, 2016:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Total
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0	$	134	$	0	$	0	$	134
Swap Agreements		0		0		0		0		638		638
	$	0	$	0	$	134	$	0	$	638	$	772
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	142	$	0	$	142
Swap Agreements		0		0		2,060		0		0		2,060
	$	0	$	0	$	2,060	$	142	$	0	$	2,202
	$	0	$	0	$	2,194	$	142	$	638	$	2,974
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared
Written Options	$	0	$	0	$	330	$	0	$	0	$	330
Futures		0		0		213		0		0		213
Swap Agreements		0		0		0		0		910		910
	$	0	$	0	$	543	$	0	$	910	$	1,453
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	80	$	0	$	80
Swap Agreements		0		825		0		0		0		825
	$	0	$	825	$	0	$	80	$	0	$	905
	$	0	$	825	$	543	$	80	$	910	$	2,358

The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2016:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts			Foreign Exchange Contracts			Interest Rate Contracts			Total
Net Realized Gain (Loss) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0	$	(1,191	)	$	0		$	0		$	(1,191	)
Written Options		0		0		(1,720	)		0			0			(1,720	)
Futures		0		0		4,122			0			0			4,122
Swap Agreements		0		0		0			0			3,204			3,204
	$	0	$	0	$	1,211		$	0		$	3,204		$	4,415
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0		$	688		$	0		$	688
Swap Agreements		0		28		91			0			(4	)		115
	$	0	$	28	$	91		$	688		$	(4	)	$	803
	$	0	$	28	$	1,302		$	688		$	3,200		$	5,218
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0	$	252		$	0		$	0		$	252
Written Options		0		0		398			0			0			398
Futures		0		0		(246	)		0			0			(246	)
Swap Agreements		0		0		0			0			(695	)		(695	)
	$	0	$	0	$	404		$	0		$	(695	)	$	(291	)
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0		$	(200	)	$	0		$	(200	)
Swap Agreements		0		76		2,642			0			15			2,733
	$	0	$	76	$	2,642		$	(200	)	$	15		$	2,533
	$	0	$	76	$	3,046		$	(200	)	$	(680	)	$	2,242

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 43

Schedule of Investments PIMCO Global StocksPLUS^® & Income Fund (Cont.)

December 31, 2016 (Unaudited)

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of December 31, 2016 in valuing the Fund’s assets and liabilities:

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2016
Investments in Securities, at Value
Bank Loan Obligations	$	0	$	1,237	$	63	$	1,300
Corporate Bonds & Notes
Banking & Finance		0		25,761		3,742		29,503
Industrials		0		27,238		0		27,238
Utilities		0		4,431		0		4,431
Convertible Bonds & Notes
Industrials		0		686		0		686
Municipal Bonds & Notes
Illinois		0		113		0		113
West Virginia		0		1,525		0		1,525
U.S. Government Agencies		0		2,536		0		2,536
U.S. Treasury Obligations		0		1,006		0		1,006
Non-Agency Mortgage-Backed Securities		0		62,442		810		63,252
Asset-Backed Securities		0		13,153		0		13,153
Sovereign Issues		0		859		0		859
Common Stocks
Financials		0		0		95		95
Short-Term Instruments
Repurchase Agreements		0		1,456		0		1,456
Short-Term Notes		0		10,196		0		10,196

Category and Subcategory	Level 1			Level 2			Level 3		Fair Value at 12/31/2016
U.S. Treasury Bills	$	0		$	11,125		$	0	$	11,125
Total Investments	$	0		$	163,764		$	4,710	$	168,474
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared		134			638			0		772
Over the counter		0			2,202			0		2,202
	$	134		$	2,840		$	0	$	2,974
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared		(543	)		(910	)		0		(1,453	)
Over the counter		0			(905	)		0		(905	)
	$	(543	)	$	(1,815	)	$	0	$	(2,358	)
Total Financial Derivative Instruments	$	(409	)	$	1,025		$	0	$	616
Totals	$	(409	)	$	164,789		$	4,710	$	169,090

There were no significant transfers between Levels 1 and 2 during the period ended December 31, 2016.

The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Fund during the period ended December 31, 2016:

Category and Subcategory	Beginning Balance at 06/30/2016		Net Purchases		Net Sales			Accrued Discounts/ (Premiums)		Realized Gain/(Loss)			Net Change in Unrealized Appreciation/ (Depreciation)(1)			Transfers into Level 3		Transfers out of Level 3			Ending Balance at 12/31/2016		Net Change in Unrealized Appreciation/ (Depreciation) on Investments Held at 12/31/2016(1)
Investments in Securities, at Value
Bank Loan Obligations	$	109	$	0	$	0		$	0	$	0		$	(46	)	$	0	$	0		$	63	$	(46	)
Corporate Bonds & Notes
Banking & Finance		3,759		0		(12	)		5		0			(10	)		0		0			3,742		(11	)
Industrials		850		0		0			4		(4	)		(20	)		0		(830	)		0		0
Non-Agency Mortgage-Backed Securities		1,455		31		(177	)		4		14			(40	)		0		(477	)		810		(27	)
Common Stocks
Financials		66		0		0			0		0			29			0		0			95		29
Warrants
Industrials		0		0		0			0		(15	)		15			0		0			0		0
Totals	$	6,239	$	31	$	(189	)	$	13	$	(5	)	$	(72	)	$	0	$	(1,307	)	$	4,710	$	(55	)

The following is a summary of significant unobservable inputs used in the fair valuations of assets and liabilities categorized within Level 3 of the fair value hierarchy:

Category and Subcategory	Ending Balance at 12/31/2016		Valuation Technique	Unobservable Inputs		Input Value(s) (% Unless Noted Otherwise)
Investments in Securities, at Value
Bank Loan Obligations	$	63	Other Valuation Techniques(2)				—
Corporate Bonds & Notes
Banking & Finance		2,642	Reference Instrument		Spread movement		63.96-170 bps
		1,100	Proxy Pricing		Base Price		102.67
Non-Agency Mortgage-Backed Securities		484	Proxy Pricing		Base Price		6.65-99.60
		326	Third Party Vendor		Broker Quote		77.56
Common Stocks
Financials		95	Other Valuation Techniques(2)				—
Total	$	4,710

⁽¹⁾  Any difference between Net Change in Unrealized Appreciation/(Depreciation) and Net Change in Unrealized Appreciation/(Depreciation) on Investments Held at December 31, 2016 may be due to an investment no longer held or categorized as Level 3 at period end.

⁽²⁾  Includes valuation techniques not defined in the Notes to Financial Statements as securities valued using such techniques are not considered significant to the Fund.

44 PIMCO CLOSED-END FUNDS See Accompanying Notes

Schedule of Investments PIMCO Income Opportunity Fund

December 31, 2016 (Unaudited)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
INVESTMENTS IN SECURITIES 162.7%
BANK LOAN OBLIGATIONS 4.9%
Ancestry.com, Inc.
9.250% due 10/19/2024	$		800	$		818
Energy Future Intermediate Holding Co. LLC
4.250% due 06/30/2017			7,707			7,767
iHeartCommunications, Inc.
7.520% due 01/30/2019			4,600			3,753
OGX
13.000% due 04/10/2049 ^			271			127
Rackspace Hosting, Inc.
4.500% due 11/03/2023			1,400			1,418
Sequa Corp.
5.250% due 06/19/2017			3,473			3,324
Total Bank Loan Obligations (Cost $18,066)						17,207
CORPORATE BONDS & NOTES 53.0%
BANKING & FINANCE 22.0%
AGFC Capital Trust
6.000% due 01/15/2067 (i)			2,300			1,150
Ally Financial, Inc.
8.000% due 11/01/2031			650			757
8.000% due 11/01/2031 (i)			1,020			1,186
Banco do Brasil S.A.
6.250% due 04/15/2024 (e)			240			177
Banco Espirito Santo S.A.
4.000% due 01/21/2019 ^	EUR		3,100			930
Banco Popular Espanol S.A.
11.500% due 10/10/2018 (e)(i)			500			532
Barclays Bank PLC
7.625% due 11/21/2022 (i)	$		400			440
Barclays PLC
6.500% due 09/15/2019 (e)	EUR		200			205
7.875% due 09/15/2022 (e)(i)	GBP		1,970			2,430
8.000% due 12/15/2020 (e)	EUR		200			223
Blackstone CQP Holdco LP
9.296% due 03/19/2019	$		11,311			11,410
Cantor Fitzgerald LP
7.875% due 10/15/2019 (i)			3,160			3,502
Co-operative Group Holdings Ltd.
7.500% due 07/08/2026	GBP		1,700			2,492
Communications Sales & Leasing, Inc.
8.250% due 10/15/2023 (i)	$		582			620
Credit Agricole S.A.
7.500% due 06/23/2026 (e)(i)	GBP		1,000			1,237
7.875% due 01/23/2024 (e)(i)	$		2,700			2,737
Credit Suisse AG
6.500% due 08/08/2023 (i)			200			213
Exeter Finance Corp.
9.750% due 05/20/2019			2,800			2,659
HSBC Holdings PLC
6.000% due 09/29/2023 (e)(i)	EUR		1,200			1,310
Jefferies Finance LLC
7.500% due 04/15/2021 (i)	$		2,285			2,271
Jefferies LoanCore LLC
6.875% due 06/01/2020 (i)			1,450			1,392
KGH Intermediate Holdco LLC
12.000% due 08/08/2019 (g)			4,940			4,892
MPT Operating Partnership LP
5.250% due 08/01/2026			805			791
Nationwide Building Society
10.250% due 06/29/2049 (e)	GBP		8			1,216
Navient Corp.
5.500% due 01/15/2019 (i)	$		845			879
5.625% due 08/01/2033			168			139
8.000% due 03/25/2020 (i)			1,100			1,223
OneMain Financial Holdings LLC
6.750% due 12/15/2019			288			301
Pinnacol Assurance
8.625% due 06/25/2034 (g)			2,900			2,899

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Provident Funding Associates LP
6.750% due 06/15/2021 (i)	$		1,000	$		1,010
Rio Oil Finance Trust
9.250% due 07/06/2024			1,534			1,450
9.750% due 01/06/2027			282			260
Royal Bank of Scotland Group PLC
7.500% due 08/10/2020 (e)(i)			3,250			3,087
8.000% due 08/10/2025 (e)(i)			1,900			1,824
8.625% due 08/15/2021 (e)			1,000			1,023
Santander UK Group Holdings PLC
7.375% due 06/24/2022 (e)(i)	GBP		2,500			3,101
Sberbank of Russia Via SB Capital S.A.
6.125% due 02/07/2022 (i)	$		3,400			3,704
6.125% due 02/07/2022			600			654
Springleaf Finance Corp.
5.250% due 12/15/2019			84			85
8.250% due 12/15/2020 (i)			2,100			2,289
Tesco Property Finance PLC
6.052% due 10/13/2039	GBP		1,754			2,244
TIG FinCo PLC
8.500% due 03/02/2020			431			546
8.750% due 04/02/2020 (i)			2,336			2,670
Toll Road Investors Partnership LP
0.000% due 02/15/2045 (d)	$		10,954			2,402
UBS Group AG
5.750% due 02/19/2022 (e)	EUR		400			445
						77,007
INDUSTRIALS 23.9%
ADT Corp.
4.875% due 07/15/2032	$		220			183
Altice Financing S.A.
7.500% due 05/15/2026 (i)			2,200			2,293
BCD Acquisition, Inc.
9.625% due 09/15/2023			950			1,021
BMC Software Finance, Inc.
8.125% due 07/15/2021			239			225
Boxer Parent Co., Inc. (9.000% Cash or 9.750% PIK)
9.000% due 10/15/2019 (b)(i)			3,362			3,169
Caesars Entertainment Operating Co., Inc.
8.500% due 02/15/2020 ^(f)			10,025			10,526
9.000% due 02/15/2020 ^(f)			573			597
California Resources Corp.
8.000% due 12/15/2022			628			562
Cheniere Corpus Christi Holdings LLC
5.875% due 03/31/2025			100			102
Chesapeake Energy Corp.
4.130% due 04/15/2019			29			29
6.250% due 01/15/2017	EUR		2,000			2,102
Concordia International Corp.
9.000% due 04/01/2022 (i)	$		300			255
Continental Airlines Pass-Through Trust
7.707% due 10/02/2022 (i)			531			574
8.048% due 05/01/2022 (i)			567			631
Corp. GEO S.A.B. de C.V.
8.875% due 03/27/2022 ^			200			0
9.250% due 06/30/2020 ^			1,800			0
CVS Pass-Through Trust
7.507% due 01/10/2032 (i)			2,508			3,056
Delta Air Lines Pass-Through Trust
7.750% due 06/17/2021 (i)			460			510
Diamond Resorts International, Inc.
10.750% due 09/01/2024 (i)			1,600			1,576
DriveTime Automotive Group, Inc.
8.000% due 06/01/2021 (i)			1,500			1,461
Enterprise Inns PLC
6.875% due 05/09/2025	GBP		20			26
Forbes Energy Services Ltd.
9.000% due 06/15/2019 ^(f)	$		1,580			569
Harvest Operations Corp.
2.330% due 04/14/2021 (i)			2,538			2,491

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
HCA, Inc.
4.500% due 02/15/2027 (i)	$		900	$		886
Hellenic Railways Organization S.A.
4.028% due 03/17/2017	EUR		800			836
iHeartCommunications, Inc.
9.000% due 03/01/2021 (i)	$		3,790			2,819
Intelsat Luxembourg S.A.
7.750% due 06/01/2021			3,958			1,316
8.125% due 06/01/2023			166			53
Intrepid Aviation Group Holdings LLC
6.875% due 02/15/2019			6,181			5,563
Kinetic Concepts, Inc.
9.625% due 10/01/2021 (i)			4,200			4,462
Mallinckrodt International Finance S.A.
4.750% due 04/15/2023			400			350
Millar Western Forest Products Ltd.
8.500% due 04/01/2021			1,876			1,041
N&W Global Vending SpA
7.000% due 10/15/2023	EUR		690			756
OGX Austria GmbH
8.375% due 04/01/2022 ^	$		3,300			0
8.500% due 06/01/2018 ^			3,700			0
Ortho-Clinical Diagnostics, Inc.
6.625% due 05/15/2022 (i)			1,000			890
Petroleos de Venezuela S.A.
6.000% due 11/15/2026			130			50
Prime Security Services Borrower LLC
9.250% due 05/15/2023 (i)			1,470			1,604
Russian Railways via RZD Capital PLC
7.487% due 03/25/2031	GBP		100			140
Sabine Pass Liquefaction LLC
5.875% due 06/30/2026	$		1,500			1,622
Safeway, Inc.
7.250% due 02/01/2031			140			137
Sequa Corp.
7.000% due 12/15/2017			2,700			1,512
SFR Group S.A.
6.000% due 05/15/2022 (i)			500			515
7.375% due 05/01/2026 (i)			2,938			3,011
Southern Co.
5.500% due 03/15/2057			280			283
Spanish Broadcasting System, Inc.
12.500% due 04/15/2017 (i)			7,650			7,679
Spirit Issuer PLC
6.582% due 12/28/2027	GBP		2,175			2,933
Sterigenics-Nordion Topco LLC (8.125% Cash or 8.875% PIK)
8.125% due 11/01/2021 (b)	$		400			399
Tembec Industries, Inc.
9.000% due 12/15/2019 (i)			1,800			1,692
Times Square Hotel Trust
8.528% due 08/01/2026 (i)			4,576			5,202
UAL Pass-Through Trust
9.750% due 07/15/2018 (i)			702			705
UCP, Inc.
8.500% due 10/21/2017			2,800			2,783
Unique Pub Finance Co. PLC
5.659% due 06/30/2027	GBP		1,348			1,764
7.395% due 03/28/2024			500			645
						83,606
UTILITIES 7.1%
Frontier Communications Corp.
11.000% due 09/15/2025	$		350			363
Gazprom Neft OAO Via GPN Capital S.A.
4.375% due 09/19/2022			200			198
6.000% due 11/27/2023 (i)			1,350			1,438
Gazprom OAO Via Gaz Capital S.A.
5.999% due 01/23/2021			381			412
6.510% due 03/07/2022 (i)			3,400			3,764
6.605% due 02/13/2018	EUR		100			112
8.625% due 04/28/2034	$		1,081			1,399
9.250% due 04/23/2019			100			114

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 45

Schedule of Investments PIMCO Income Opportunity Fund (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Illinois Power Generating Co.
6.300% due 04/01/2020 ^(i)	$		4,295	$		1,546
7.950% due 06/01/2032 ^(i)			4,033			1,452
Odebrecht Drilling Norbe Ltd.
6.350% due 06/30/2022			3,750			1,716
Petrobras Global Finance BV
5.750% due 01/20/2020			570			579
6.250% due 03/17/2024			20			19
6.250% due 12/14/2026	GBP		600			694
6.625% due 01/16/2034			200			216
7.875% due 03/15/2019 (i)	$		2,777			2,983
Sierra Hamilton LLC
12.250% due 12/15/2018			200			131
Sprint Capital Corp.
6.900% due 05/01/2019 (i)			1,100			1,167
Sprint Communications, Inc.
7.000% due 08/15/2020 (i)			1,100			1,169
Sprint Corp.
7.125% due 06/15/2024 (i)			3,182			3,285
7.875% due 09/15/2023			65			70
TerraForm Power Operating LLC
6.375% due 02/01/2023 (i)			1,900			1,933
						24,760
Total Corporate Bonds & Notes (Cost $204,865)						185,373
CONVERTIBLE BONDS & NOTES 1.5%
BANKING & FINANCE 1.5%
SL Green Operating Partnership LP
3.000% due 10/15/2017 (i)			3,800			5,299
Total Convertible Bonds & Notes (Cost $3,797)						5,299
MUNICIPAL BONDS & NOTES 0.8%
ILLINOIS 0.1%
Chicago, Illinois General Obligation Bonds, Series 2015
7.375% due 01/01/2033			120			125
7.750% due 01/01/2042			210			213
						338
IOWA 0.0%
Iowa Tobacco Settlement Authority Revenue Bonds, Series 2005
6.500% due 06/01/2023			155			153
WEST VIRGINIA 0.7%
Tobacco Settlement Finance Authority, West Virginia Revenue Bonds, Series 2007
7.467% due 06/01/2047			2,680			2,425
Total Municipal Bonds & Notes (Cost $3,053)						2,916
U.S. GOVERNMENT AGENCIES 0.4%
Fannie Mae
4.000% due 10/01/2040			39			41
Freddie Mac
0.100% due 05/25/2020 (a)			45,800			110
0.701% due 10/25/2020 (a)(i)			27,775			602
5.406% due 10/25/2028			600			641
Total U.S. Government Agencies (Cost $1,402)						1,394
NON-AGENCY MORTGAGE-BACKED SECURITIES 42.7%
Adjustable Rate Mortgage Trust
3.215% due 01/25/2036			177			154
American Home Mortgage Investment Trust
1.026% due 03/25/2037			5,138			3,014

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Auburn Securities PLC
0.655% due 10/01/2041	GBP		209	$		254
Banc of America Alternative Loan Trust
15.277% due 09/25/2035 ^	$		1,630			1,797
Banc of America Funding Trust
2.966% due 12/20/2036			161			163
2.981% due 12/20/2034			802			747
3.051% due 03/20/2036 ^			1,131			976
3.641% due 10/20/2046 ^			644			486
Banc of America Mortgage Trust
3.190% due 09/25/2034			188			184
3.247% due 10/20/2046 ^			152			94
5.750% due 08/25/2034 (i)			340			359
Bayview Commercial Asset Trust
0.976% due 03/25/2037			183			162
Bear Stearns Adjustable Rate Mortgage Trust
2.897% due 09/25/2034			111			104
3.036% due 08/25/2047 ^			431			363
3.101% due 03/25/2035			393			374
3.183% due 09/25/2034			72			70
3.343% due 10/25/2036 ^			1,083			928
4.640% due 06/25/2047 ^			331			304
Bear Stearns ALT-A Trust
1.076% due 06/25/2046 ^(i)			3,843			3,297
1.456% due 01/25/2035			701			683
2.891% due 09/25/2034			326			316
2.977% due 04/25/2035			385			324
3.110% due 08/25/2036 ^(i)			2,961			2,754
3.169% due 11/25/2035			75			65
3.184% due 08/25/2036 ^			616			452
3.217% due 11/25/2036 ^			604			511
3.244% due 05/25/2036 ^			977			756
3.255% due 05/25/2035			617			555
4.661% due 07/25/2035 ^			384			313
Bluestone Securities PLC
0.597% due 06/09/2043	GBP		376			434
BRAD Resecuritization Trust
2.181% due 03/12/2021	$		3,164			209
6.550% due 03/12/2021			591			577
CBA Commercial Small Balance Commercial Mortgage
5.540% due 01/25/2039 ^			1,630			1,208
Celtic Residential Irish Mortgage Securitisation PLC
0.000% due 11/13/2047 (i)	EUR		512			535
Chase Mortgage Finance Trust
5.500% due 11/25/2021 ^	$		981			792
6.000% due 03/25/2037 ^(i)			984			846
Citigroup Global Markets Mortgage Securities, Inc.
6.500% due 02/25/2029			314			316
Citigroup Mortgage Loan Trust, Inc.
3.044% due 03/25/2037 ^(i)			1,891			1,623
5.500% due 11/25/2035 ^			758			693
Citigroup/Deutsche Bank Commercial Mortgage Trust
5.398% due 12/11/2049 (i)			2,657			2,316
Commercial Mortgage Loan Trust
6.095% due 12/10/2049			846			536
Commercial Mortgage Trust
6.139% due 07/10/2046 (i)			2,170			2,338
Countrywide Alternative Loan Trust
1.006% due 06/25/2037 ^			1,230			652
1.106% due 05/25/2036 ^			2,073			1,032
1.106% due 06/25/2036 ^(i)			1,754			1,075
5.500% due 10/25/2035 ^			394			354
5.500% due 12/25/2035 ^(i)			1,848			1,540
5.750% due 05/25/2036 ^			362			281
6.000% due 11/25/2035 ^			430			197
6.000% due 04/25/2036 ^			376			308
6.000% due 04/25/2037 ^			704			478
6.500% due 09/25/2032 ^			453			442
6.500% due 07/25/2035 ^			782			531
6.500% due 06/25/2036 ^			589			427
Countrywide Home Loan Mortgage Pass-Through Trust
1.396% due 03/25/2035 (i)			756			642
2.626% due 03/25/2046 ^			3,964			2,293
2.841% due 03/25/2037 ^(i)			1,379			1,066
2.913% due 08/20/2035 ^			122			109
3.028% due 06/20/2035			265			243

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
3.155% due 11/25/2035 ^(i)	$		2,714	$		2,246
3.172% due 08/25/2034 ^			65			56
3.317% due 09/25/2047 ^			1,347			1,227
5.500% due 08/25/2035 ^			104			96
Credit Suisse Commercial Mortgage Trust
6.500% due 07/26/2036 ^			531			298
Credit Suisse First Boston Mortgage Securities Corp.
7.500% due 05/25/2032			1,661			1,776
Credit Suisse Mortgage Capital Mortgage-Backed Trust
1.356% due 07/25/2036 ^			614			215
5.896% due 04/25/2036			551			407
6.500% due 05/25/2036 ^			437			286
Debussy PLC
5.930% due 07/12/2025 (i)	GBP		7,000			8,536
Deutsche ALT-A Securities, Inc.
0.906% due 02/25/2047	$		733			520
Deutsche ALT-B Securities, Inc.
6.250% due 07/25/2036 ^			115			96
Deutsche Mortgage Securities, Inc. Mortgage Loan Trust
5.500% due 09/25/2033			188			195
Downey Savings & Loan Association Mortgage Loan Trust
0.916% due 04/19/2047 ^			463			178
EMF-NL BV
0.689% due 07/17/2041	EUR		800			703
1.939% due 10/17/2041			1,000			908
Epic Drummond Ltd.
0.000% due 01/25/2022			965			1,005
Eurosail PLC
1.977% due 09/13/2045	GBP		1,814			1,772
2.627% due 09/13/2045			1,314			1,227
4.227% due 09/13/2045			1,126			1,034
First Horizon Alternative Mortgage Securities Trust
2.800% due 11/25/2036 ^	$		1,657			1,283
2.833% due 05/25/2036 ^			2,022			1,636
2.855% due 08/25/2035 ^			148			30
3.180% due 02/25/2036			194			156
6.250% due 11/25/2036 ^			132			100
First Horizon Mortgage Pass-Through Trust
2.722% due 07/25/2037 ^			147			124
2.900% due 01/25/2037 ^(i)			1,091			959
GE Commercial Mortgage Corp. Trust
5.606% due 12/10/2049 (i)			5,300			5,308
GMAC Mortgage Corp. Loan Trust
3.500% due 06/25/2034			198			197
3.531% due 06/25/2034			199			195
3.578% due 07/19/2035			88			80
GreenPoint Mortgage Funding Trust
0.936% due 01/25/2037			1,354			1,089
GS Mortgage Securities Trust
1.429% due 08/10/2043 (a)			8,116			336
6.064% due 08/10/2043 (i)			2,100			2,128
GSR Mortgage Loan Trust
1.206% due 07/25/2037 ^			475			278
3.289% due 01/25/2036 ^(i)			1,489			1,395
3.855% due 12/25/2034			37			36
6.000% due 09/25/2034			194			194
HarborView Mortgage Loan Trust
0.926% due 02/19/2046 (i)			2,116			1,631
0.946% due 11/19/2036 (i)			3,919			2,818
1.296% due 06/19/2034			322			301
1.376% due 01/19/2035			315			268
2.991% due 08/19/2036 ^			270			201
HomeBanc Mortgage Trust
1.006% due 03/25/2035			394			335
IM Pastor Fondo de Titulizacion de Activos
0.000% due 03/22/2044	EUR		734			635
Impac CMB Trust
1.276% due 11/25/2035 ^	$		382			314
IndyMac Mortgage Loan Trust
0.986% due 04/25/2035			217			189
1.556% due 08/25/2034			203			171
1.616% due 09/25/2034			491			449
2.658% due 06/25/2037 ^			419			321

46 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
3.174% due 05/25/2037 ^(i)	$		4,725	$		3,822
3.277% due 11/25/2036 ^			1,267			1,126
3.396% due 12/25/2036 ^			1,663			1,473
4.376% due 05/25/2037 ^			25			6
JPMorgan Alternative Loan Trust
3.148% due 05/25/2036 ^			534			412
5.500% due 11/25/2036 ^			7			5
JPMorgan Chase Commercial Mortgage Securities Trust
5.502% due 01/12/2043 (i)			910			912
JPMorgan Commercial Mortgage-Backed Securities Trust
5.716% due 03/18/2051 (i)			4,000			4,021
JPMorgan Mortgage Trust
3.046% due 07/25/2035			163			161
3.096% due 05/25/2036 ^			905			813
3.110% due 10/25/2036 ^			64			55
6.000% due 08/25/2037 ^			742			658
Landmark Mortgage Securities PLC
0.088% due 06/17/2038	EUR		266			266
0.591% due 06/17/2038	GBP		697			829
Lehman Mortgage Trust
5.908% due 04/25/2036	$		428			384
6.000% due 05/25/2037 ^(i)			1,804			1,766
MASTR Adjustable Rate Mortgages Trust
1.307% due 01/25/2047 ^			467			332
3.307% due 10/25/2034			940			830
Merrill Lynch Mortgage Trust
5.826% due 06/12/2050 (i)			5,400			5,245
Morgan Stanley Capital Trust
5.690% due 04/15/2049 (i)			1,100			1,079
Morgan Stanley Mortgage Loan Trust
2.936% due 07/25/2035 ^(i)			2,098			1,722
3.326% due 01/25/2035 ^			295			109
5.750% due 12/25/2035 ^			525			507
6.000% due 08/25/2037 ^			342			297
Prime Mortgage Trust
1.106% due 06/25/2036 ^			4,015			2,282
7.000% due 07/25/2034			228			218
Regal Trust
2.098% due 09/29/2031			14			13
Residential Accredit Loans, Inc. Trust
0.966% due 06/25/2037			2,484			1,942
5.500% due 04/25/2037			141			117
6.000% due 08/25/2035 ^			664			605
6.000% due 01/25/2037 ^(i)			668			597
Residential Asset Securitization Trust
6.000% due 03/25/2037 ^			563			379
6.000% due 07/25/2037 (i)			8,505			5,919
Residential Funding Mortgage Securities, Inc. Trust
4.651% due 07/27/2037 ^			358			312
6.000% due 06/25/2037 ^			541			496
Sequoia Mortgage Trust
3.202% due 01/20/2038 ^			403			347
Structured Adjustable Rate Mortgage Loan Trust
3.013% due 01/25/2036 ^			1,397			1,056
3.049% due 08/25/2034			28			27
3.317% due 11/25/2036 ^			469			455
Structured Asset Mortgage Investments Trust
0.966% due 08/25/2036 ^(i)			2,747			2,232
0.986% due 05/25/2045			194			171
Structured Asset Securities Corp. Mortgage Pass-Through Certificates
3.087% due 01/25/2034			509			507
TBW Mortgage-Backed Trust
6.000% due 07/25/2036 ^			373			269
Theatre Hospitals PLC
4.151% due 10/15/2031	GBP		254			299
WaMu Commercial Mortgage Securities Trust
5.752% due 03/23/2045 (i)	$		3,124			3,123
WaMu Mortgage Pass-Through Certificates Trust
2.098% due 07/25/2046 (i)			2,389			2,221
2.468% due 03/25/2037 ^			664			591
2.498% due 03/25/2033			107			107
2.583% due 06/25/2037 ^(i)			1,961			1,770
2.625% due 11/25/2036 ^			411			354

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
2.768% due 07/25/2037 ^(i)	$		1,520	$		1,378
2.898% due 07/25/2037 ^(i)			3,586			3,045
Washington Mutual Mortgage Pass-Through Certificates Trust
1.417% due 10/25/2046 ^(i)			615			439
2.600% due 06/25/2033			67			67
Wells Fargo Mortgage-Backed Securities Trust
1.256% due 07/25/2037 ^			320			272
3.003% due 09/25/2036 ^			31			29
3.073% due 10/25/2036 ^			31			29
3.083% due 04/25/2036 ^			34			34
Total Non-Agency Mortgage-Backed Securities (Cost $136,849)						149,122
ASSET-BACKED SECURITIES 46.4%
Access Financial Manufactured Housing Contract Trust
7.650% due 05/15/2021			209			66
American Money Management Corp. CLO Ltd.
7.931% due 12/09/2026			1,200			1,180
Ameriquest Mortgage Securities, Inc. Asset-Backed Pass-Through Certificates
2.481% due 05/25/2034			154			124
3.606% due 08/25/2032			1,134			1,081
Asset-Backed Funding Certificates Trust
0.906% due 10/25/2036 (i)			7,665			6,741
1.316% due 10/25/2033			167			152
1.416% due 03/25/2035 (i)			4,431			3,670
Associates Manufactured Housing Pass-Through Certificates
7.150% due 03/15/2028 (i)			1,585			1,902
Bear Stearns Asset-Backed Securities Trust
0.953% due 09/25/2034			824			731
3.012% due 07/25/2036			613			392
Bombardier Capital Mortgage Securitization Corp.
7.830% due 06/15/2030			3,556			1,733
C-BASS CBO Corp.
1.196% due 09/06/2041			8,465			1,397
Conseco Finance Securitizations Corp.
7.770% due 09/01/2031			940			1,037
7.960% due 05/01/2031			1,720			1,250
7.970% due 05/01/2032			269			155
8.060% due 09/01/2029 (i)			3,048			1,806
9.163% due 03/01/2033			2,971			2,762
Conseco Financial Corp.
6.220% due 03/01/2030			114			122
6.330% due 11/01/2029			38			39
6.530% due 02/01/2031			1,304			1,299
7.050% due 01/15/2027			169			178
7.140% due 03/15/2028			182			188
7.240% due 06/15/2028			48			48
Countrywide Asset-Backed Certificates
0.834% due 01/25/2037 (i)			15,575			13,365
0.896% due 06/25/2035 (i)			9,498			7,322
1.096% due 12/25/2036 ^			704			362
1.316% due 08/25/2032 ^			383			334
2.031% due 02/25/2035 (i)			3,750			3,545
Countrywide Asset-Backed Certificates Trust
1.536% due 11/25/2034 (i)			455			446
4.693% due 10/25/2035			21			21
Credit Suisse First Boston Mortgage Securities Corp.
1.806% due 02/25/2031			1,858			1,714
Credit-Based Asset Servicing and Securitization LLC
1.904% due 12/25/2035			1,377			1,121
Euromax ABS PLC
0.028% due 11/10/2095	EUR		5,000			3,670
First Franklin Mortgage Loan Trust
1.206% due 11/25/2036 (i)	$		10,000			9,319
1.356% due 07/25/2035 (i)			8,092			6,326
Greenpoint Manufactured Housing
8.300% due 10/15/2026			814			896
Home Equity Asset Trust
3.156% due 10/25/2033			24			22
Home Equity Loan Trust
0.986% due 04/25/2037 (i)			6,015			4,485
1.096% due 04/25/2037 (i)			8,700			5,216

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
IndyMac Home Equity Mortgage Loan Asset-Backed Trust
0.996% due 04/25/2037 (i)	$		16,766	$		10,581
1.076% due 04/25/2037 (i)			5,640			4,373
JPMorgan Mortgage Acquisition Trust
0.664% due 08/25/2036			9			5
0.946% due 03/25/2047			1,849			1,451
KGS Alpha SBA Trust
1.073% due 04/25/2038 (a)			1,508			47
Lehman ABS Mortgage Loan Trust
0.846% due 06/25/2037 (i)			6,544			4,059
Long Beach Mortgage Loan Trust
0.946% due 02/25/2036			3,673			2,449
1.026% due 05/25/2046			3,837			1,676
1.461% due 11/25/2035			3,736			2,170
3.231% due 03/25/2032			291			251
MASTR Asset-Backed Securities Trust
5.233% due 11/25/2035			45			45
Morgan Stanley ABS Capital, Inc. Trust
1.791% due 01/25/2035			678			306
Morgan Stanley Dean Witter Capital, Inc. Trust
2.181% due 02/25/2033			531			514
Morgan Stanley Home Equity Loan Trust
1.806% due 12/25/2034 (i)			4,445			3,930
National Collegiate Commutation Trust
0.000% due 03/25/2038			10,400			4,620
NovaStar Mortgage Funding Trust
0.926% due 11/25/2036			1,537			760
Oakwood Mortgage Investors, Inc.
0.934% due 06/15/2032			21			19
Option One Mortgage Loan Trust
5.662% due 01/25/2037 ^			20			21
Origen Manufactured Housing Contract Trust
7.650% due 03/15/2032			2,047			2,127
Ownit Mortgage Loan Trust
3.563% due 12/25/2036			2,435			1,574
Park Place Securities, Inc. Asset-Backed Pass-Through Certificates
2.631% due 10/25/2034			1,161			704
Residential Asset Mortgage Products Trust
1.709% due 08/25/2033			536			494
2.481% due 09/25/2034 (i)			3,239			2,571
4.020% due 04/25/2033			2			2
5.220% due 07/25/2034 ^			77			74
5.767% due 11/25/2033 (i)			959			1,019
Residential Asset Securities Corp. Trust
1.196% due 10/25/2035 (i)			3,526			2,780
Saxon Asset Securities Trust
1.731% due 12/26/2034			629			499
Securitized Asset-Backed Receivables LLC Trust
0.986% due 02/25/2037 ^			406			274
1.431% due 01/25/2035			44			41
SLM Student Loan Trust
0.000% due 01/25/2042 (d)			2			1,993
SoFi Professional Loan Program LLC
0.000% due 01/25/2039 (d)			2,540			1,481
Soloso CDO Ltd.
1.188% due 10/07/2037			1,300			533
South Coast Funding Ltd.
1.124% due 01/06/2041			43,659			11,111
Specialty Underwriting & Residential Finance Trust
0.906% due 06/25/2037 (i)			6,255			4,491
Structured Asset Investment Loan Trust
0.976% due 01/25/2036 (i)			6,416			4,972
Structured Asset Securities Corp. Mortgage Loan Trust
1.056% due 06/25/2035 (i)			446			397
Talon Funding Ltd.
1.432% due 06/05/2035			1,227			659
UCFC Home Equity Loan Trust
7.750% due 04/15/2030			741			724
Total Asset-Backed Securities (Cost $150,204)						162,014

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 47

Schedule of Investments PIMCO Income Opportunity Fund (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
SOVEREIGN ISSUES 0.7%
Costa Rica Government International Bond
7.000% due 04/04/2044	$		500	$		459
Republic of Greece Government International Bond
3.800% due 08/08/2017	JPY		46,000			386
4.500% due 07/03/2017			40,000			339
4.750% due 04/17/2019	EUR		200			199
Saudi Government International Bond
3.250% due 10/26/2026	$		200			190
4.500% due 10/26/2046			1,000			960
Total Sovereign Issues (Cost $2,694)						2,533
		SHARES
COMMON STOCKS 0.2%
CONSUMER DISCRETIONARY 0.1%
Tribune Media Co. ‘A’			5,969			209
tronc, Inc.			1,492			21
						230
ENERGY 0.0%
OGX Petroleo e Gas S.A. SP - ADR			110,823			0

	SHARES			MARKET VALUE (000S)
FINANCIALS 0.1%
TIG FinCo PLC (g)		330,393	$		301
Total Common Stocks (Cost $830)					531
CONVERTIBLE PREFERRED SECURITIES 4.9%
BANKING & FINANCE 4.9%
Wells Fargo & Co.
7.500% (e)		14,500			17,259
Total Convertible Preferred Securities (Cost $9,203)					17,259
PREFERRED SECURITIES 0.3%
BANKING & FINANCE 0.3%
Navient Corp.
3.464% due 03/15/2017		32,400			811
3.514% due 01/16/2018		8,500			215
Total Preferred Securities (Cost $460)					1,026
SHORT-TERM INSTRUMENTS 6.9%
REPURCHASE AGREEMENTS (h) 4.9%
					17,165

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
U.S. TREASURY BILLS 2.0%
0.476% due 02/23/2017 - 03/09/2017 (c)(d)(i)(k)(m)	$		6,838	$		6,832
Total Short-Term Instruments (Cost $23,998)						23,997
Total Investments in Securities (Cost $555,421)						568,671
Total Investments 162.7% (Cost $555,421)				$		568,671
Financial Derivative Instruments (j)(l) (1.1)% (Cost or Premiums, net $(4,887))						(3,810	)
Other Assets and Liabilities, net (61.6)%						(215,338	)
Net Assets 100.0%				$		349,523

NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*):

* A zero balance may reflect actual amounts rounding to less than one thousand.

^ Security is in default.

(a) Interest only security.

(b) Payment in-kind security.

(c) Coupon represents a weighted average yield to maturity.

(d) Zero coupon security.

(e) Perpetual maturity; date shown, if applicable, represents next contractual call date.

(f) Security is subject to a forbearance agreement entered into by the Fund which forbears the Fund from taking action to, among other things, accelerate and collect payments on the subject note with respect to specified events of default.

(g)  RESTRICTED SECURITIES:

Issuer Description	Acquisition Date	Cost		Market Value		Market Value as Percentage of Net Assets
KGH Intermediate Holdco LLC 12.000% due 08/08/2019	08/07/2014	$	4,883	$	4,892		1.40	%
Pinnacol Assurance 8.625% due 06/25/2034	06/23/2014		2,900		2,899		0.83
TIG FinCo PLC	04/02/2015		490		301		0.09
		$	8,273	$	8,092		2.32	%

BORROWINGS AND OTHER FINANCING TRANSACTIONS

(h)  REPURCHASE AGREEMENTS:

Counterparty	Lending Rate			Settlement Date		Maturity Date		Principal Amount		Collateralized By	Collateral (Received)			Repurchase Agreements, at Value		Repurchase Agreement Proceeds to be Received(1)
JPS		0.610	%		12/30/2016		01/03/2017	$	11,900	Ginnie Mae 3.000% due 04/20/2046	$	(12,530	)	$	11,900	$	11,901
SSB		0.010			12/30/2016		01/03/2017		5,265	U.S. Treasury Notes 1.000% - 3.500% due 02/15/2018 - 05/15/2018(2)		(5,373	)		5,265		5,265
Total Repurchase Agreements											$	(17,903	)	$	17,165	$	17,166

⁽¹⁾  Includes accrued interest.

⁽²⁾  Collateral is held in custody by the counterparty.

48 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

REVERSE REPURCHASE AGREEMENTS:

Counterparty	Borrowing Rate(3)			Borrowing Date		Maturity Date			Amount Borrowed(3)				Payable for Reverse Repurchase Agreements
BCY		1.150	%		12/16/2016		TBD	(4)		$	(6,271	)	$	(6,275	)
		1.900			11/30/2016		03/02/2017				(616	)		(617	)
		1.982			11/09/2016		02/09/2017				(478	)		(479	)
		2.354			10/03/2016		01/03/2017				(2,829	)		(2,846	)
		2.382			11/14/2016		02/09/2017				(8,403	)		(8,431	)
		2.406			11/17/2016		02/17/2017				(1,293	)		(1,297	)
		2.420			11/23/2016		02/23/2017				(3,892	)		(3,903	)
		2.494			12/21/2016		03/21/2017				(7,855	)		(7,862	)
		2.497			01/03/2017		04/03/2017				(2,979	)		(2,979	)
BPS		1.620			10/06/2016		01/06/2017				(1,685	)		(1,692	)
		1.670			11/22/2016		01/27/2017				(925	)		(927	)
		1.740			12/01/2016		03/02/2017				(1,321	)		(1,323	)
		1.780			12/08/2016		03/08/2017				(873	)		(874	)
		2.743			11/10/2016		05/10/2017				(10,169	)		(10,211	)
BRC		1.550			11/10/2016		02/03/2017				(2,262	)		(2,267	)
DEU		1.730			11/09/2016		01/05/2017				(582	)		(584	)
		1.730			11/09/2016		02/09/2017				(1,163	)		(1,166	)
		1.850			11/23/2016		02/23/2017				(1,591	)		(1,594	)
		1.900			11/28/2016		01/13/2017				(552	)		(553	)
		1.900			11/28/2016		02/27/2017				(1,543	)		(1,546	)
FOB		2.445			12/14/2016		01/17/2017				(2,399	)		(2,402	)
JML		1.650			12/05/2016		01/10/2017				(6,923	)		(6,932	)
JPS		2.526			10/12/2016		01/12/2017				(6,547	)		(6,585	)
MSC		1.400			11/29/2016		02/28/2017				(3,284	)		(3,288	)
		1.850			12/07/2016		03/07/2017				(3,224	)		(3,228	)
		1.900			11/02/2016		02/02/2017				(1,104	)		(1,108	)
		2.970			09/16/2016		09/15/2017				(1,287	)		(1,289	)
PAR		0.950			12/07/2016		02/07/2017			GBP	(802	)		(988	)
RBC		1.660			07/20/2016		01/19/2017			$	(3,734	)		(3,763	)
		1.940			12/07/2016		06/07/2017				(4,565	)		(4,572	)
		1.970			12/23/2016		06/12/2017				(3,187	)		(3,189	)
		2.550			09/26/2016		03/27/2017				(5,859	)		(5,900	)
		2.560			09/13/2016		03/13/2017				(4,510	)		(4,546	)
RDR		1.260			10/07/2016		01/09/2017				(1,093	)		(1,096	)
		1.320			11/22/2016		02/22/2017				(2,116	)		(2,119	)
RTA		1.501			07/14/2016		01/13/2017				(459	)		(462	)
		2.094			01/05/2016		01/04/2017				(7,858	)		(8,024	)
		2.209			04/15/2016		04/13/2017				(5,337	)		(5,423	)
		2.211			03/15/2016		03/14/2017				(2,265	)		(2,306	)
		2.211			01/04/2017		01/03/2018				(7,020	)		(7,020	)
		2.230			04/29/2016		04/27/2017				(4,791	)		(4,865	)
		2.239			04/25/2016		04/24/2017				(960	)		(975	)
		2.432			08/03/2016		08/02/2017				(5,568	)		(5,626	)
		2.543			11/14/2016		05/15/2017				(912	)		(915	)
SAL		1.658			10/05/2016		01/05/2017				(4,521	)		(4,540	)
		1.835			11/29/2016		03/01/2017				(368	)		(369	)
		1.835			01/05/2017		04/05/2017				(3,573	)		(3,573	)
		1.982			10/24/2016		01/24/2017				(2,541	)		(2,551	)
SOG		1.550			12/12/2016		01/18/2017				(895	)		(896	)
		1.600			10/25/2016		01/25/2017				(1,079	)		(1,082	)
		1.650			08/26/2016		02/27/2017				(1,813	)		(1,824	)
		1.650			09/02/2016		02/27/2017				(815	)		(820	)
		1.650			11/15/2016		02/15/2017				(1,485	)		(1,488	)
		1.650			11/21/2016		02/21/2017				(1,082	)		(1,084	)
		1.650			11/28/2016		02/27/2017				(2,029	)		(2,035	)
		1.650			12/06/2016		03/02/2017				(2,390	)		(2,393	)
		1.650			12/12/2016		02/27/2017				(476	)		(476	)
		1.700			12/14/2016		03/14/2017				(4,707	)		(4,711	)
		1.700			12/15/2016		03/15/2017				(3,227	)		(3,230	)
		2.607			12/09/2016		06/09/2017				(6,938	)		(6,946	)
		2.731			07/20/2016		07/20/2017				(6,558	)		(6,620	)
UBS		0.150			12/16/2016		01/20/2017			EUR	(1,069	)		(1,126	)
		0.480			10/18/2016		01/18/2017				(424	)		(447	)
		0.500			09/27/2016		TBD	(4)			(409	)		(431	)
		0.900			10/13/2016		01/13/2017			GBP	(1,645	)		(2,032	)
		0.900			10/17/2016		01/17/2017				(2,119	)		(2,617	)
		1.100			11/18/2016		02/20/2017				(1,774	)		(2,189	)
		1.300			10/20/2016		01/20/2017				(5,152	)		(6,366	)
		1.420			11/21/2016		02/22/2017			$	(209	)		(209	)

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 49

Schedule of Investments PIMCO Income Opportunity Fund (Cont.)

Counterparty	Borrowing Rate(3)			Borrowing Date		Maturity Date		Amount Borrowed(3)			Payable for Reverse Repurchase Agreements
		1.630	%		11/03/2016		02/03/2017	$	(203	)	$	(204	)
		1.650			10/28/2016		01/30/2017		(1,546	)		(1,551	)
		1.680			11/03/2016		02/03/2017		(853	)		(855	)
		1.730			12/01/2016		03/02/2017		(3,635	)		(3,641	)
		1.750			12/07/2016		03/07/2017		(1,881	)		(1,883	)
		1.850			12/28/2016		03/14/2017		(5,433	)		(5,435	)
		1.880			11/30/2016		03/02/2017		(1,392	)		(1,394	)
		2.314			10/05/2016		01/05/2017		(2,592	)		(2,607	)
		2.318			10/06/2016		01/06/2017		(2,552	)		(2,567	)
		2.364			10/05/2016		01/05/2017		(811	)		(816	)
		2.368			10/06/2016		01/06/2017		(7,823	)		(7,869	)
		2.414			10/05/2016		01/05/2017		(1,307	)		(1,315	)
		2.418			10/06/2016		01/06/2017		(1,598	)		(1,608	)
Total Reverse Repurchase Agreements											$	(235,847	)

⁽³⁾  The average amount of borrowings outstanding during the period ended December 31, 2016 was $(218,195) at a weighted average interest rate of 1.852%.

⁽⁴⁾  Open maturity reverse repurchase agreement.

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of December 31, 2016:

(i) Securities with an aggregate market value of $307,015 and cash of $360 have been pledged as collateral under the terms of the following master agreements as of December 31, 2016.

Counterparty	Repurchase Agreement Proceeds to be Received		Payable for Reverse Repurchase Agreements			Payable for Sale-Buyback Transactions		Total Borrowings and Other Financing Transactions			Collateral Pledged/(Received)			Net  Exposure(5)
Global/Master Repurchase Agreement
BCY	$	0	$	(34,689	)	$	0	$	(34,689	)	$	50,625		$	15,936
BPS		0		(15,027	)		0		(15,027	)		20,880			5,853
BRC		0		(2,267	)		0		(2,267	)		2,491			224
DEU		0		(5,443	)		0		(5,443	)		5,846			403
FOB		0		(2,402	)		0		(2,402	)		4,059			1,657
JML		0		(6,932	)		0		(6,932	)		8,693			1,761
JPS		11,901		(6,585	)		0		5,316			(3,067	)		2,249
MSC		0		(8,913	)		0		(8,913	)		10,702			1,789
PAR		0		(988	)		0		(988	)		1,237			249
RBC		0		(21,970	)		0		(21,970	)		25,604			3,634
RDR		0		(3,215	)		0		(3,215	)		3,325			110
RTA		0		(35,616	)		0		(35,616	)		48,953			13,337
SAL		0		(11,033	)		0		(11,033	)		13,634			2,601
SOG		0		(33,605	)		0		(33,605	)		40,448			6,843
SSB		5,265		0			0		5,265			(5,373	)		(108	)
UBS		0		(47,162	)		0		(47,162	)		60,067			12,905
Total Borrowings and Other Financing Transactions	$	17,166	$	(235,847	)	$	0

⁽⁵⁾  Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements.

CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS

Remaining Contractual Maturity of the Agreements

	Overnight and Continuous		Up to 30 days			31-90 days			Greater Than 90 days			Total
Reverse Repurchase Agreements
Corporate Bonds & Notes	$	0	$	(25,313	)	$	(49,653	)	$	(9,895	)	$	(84,861	)
Convertible Bonds & Notes		0		0			0			(4,572	)		(4,572	)
U.S. Government Agencies		0		0			(479	)		0			(479	)
Non-Agency Mortgage-Backed Securities		0		(20,250	)		(24,950	)		(14,259	)		(59,459	)
Asset-Backed Securities		0		(30,293	)		(14,000	)		(28,611	)		(72,904	)
Total Borrowings	$	0	$	(75,856	)	$	(89,082	)	$	(57,337	)	$	(222,275	)
Gross amount of recognized liabilities for reverse repurchase agreements(6)												$	(222,275	)

⁽⁶⁾ Unsettled reverse repurchase agreements liability of $(13,572) is outstanding at period end.

50 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

(j)   FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED

CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION⁽¹⁾

Reference Entity	Fixed Receive Rate	Maturity Date		Implied Credit Spread at December 31, 2016(2)		Notional Amount(3)		Market Value		Unrealized Appreciation		Variation Margin
												Asset		Liability
Sprint Communications, Inc.	5.000%		12/20/2021		3.462%	$	1,000	$	69	$	47	$	2	$	0

⁽¹⁾ If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽³⁾ The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

INTEREST RATE SWAPS

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Maturity Date		Notional Amount			Market Value			Unrealized Appreciation/ (Depreciation)			Variation Margin
																Asset		Liability
Pay	1-Year BRL-CDI		11.680	%		01/04/2021		BRL	71,100	$	(214	)	$	133		$	0	$	(1	)
Pay	1-Year BRL-CDI		15.590			01/04/2021			20		1			0			0		0
Pay	3-Month CAD-Bank Bill		3.300			06/19/2024		CAD	13,300		1,152			534			32		0
Receive	3-Month CAD-Bank Bill		3.500			06/20/2044			4,400		(821	)		(667	)		0		(38	)
Receive	3-Month USD-LIBOR		1.500			12/21/2021		$	18,000		(413	)		(567	)		21		0
Pay	3-Month USD-LIBOR		1.750			12/21/2023			150,000		(4,195	)		(7,021	)		302		0
Receive	3-Month USD-LIBOR		2.250			06/15/2026			6,800		29			443			0		(21	)
Receive	3-Month USD-LIBOR		2.500			06/15/2036			56,900		812			6,487			0		(342	)
Receive	3-Month USD-LIBOR		2.500			06/15/2046			17,600		300			2,449			0		(157	)
Pay	6-Month AUD-BBR-BBSW		3.500			06/17/2025		AUD	5,200		172			43			23		0
										$	(3,177	)	$	1,834		$	378	$	(559	)
Total Swap Agreements										$	(3,108	)	$	1,881		$	380	$	(559	)

FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY

The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of December 31, 2016:

(k) Securities with an aggregate market value of $854 and cash of $6,446 have been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2016. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements.

	Financial Derivative Assets								Financial Derivative Liabilities
	Market Value		Variation Margin Asset				Total		Market Value		Variation Margin Liability				Total
	Purchased Options		Futures		Swap Agreements				Written Options		Futures		Swap Agreements
Total Exchange-Traded or Centrally Cleared	$	0	$	0	$	380	$	380	$	0	$	0	$	(559)	$	(559)

(l)  FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER

FORWARD FOREIGN CURRENCY CONTRACTS:

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized  Appreciation/ (Depreciation)
							Asset		Liability
BOA		01/2017	$	13,311	EUR	12,799		$    164	$	0
		02/2017	EUR	12,799	$	13,329		0		(163	)
BPS		01/2017		10,424		11,056		82		0
		01/2017	GBP	18,630		23,296		335		0
		01/2017	$	190	EUR	182		1		0
CBK		01/2017	EUR	207	$	216		0		(2	)
		01/2017	$	685	EUR	649		1		(3	)

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 51

Schedule of Investments PIMCO Income Opportunity Fund (Cont.)

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized  Appreciation/ (Depreciation)
							Asset		Liability
GLM		01/2017	BRL	955	$	293	$	0	$	0
		01/2017	EUR	3,455		3,686		48		0
		01/2017	GBP	57		70		0		0
		01/2017	JPY	84,400		740		17		0
		01/2017	$	282	BRL	955		11		0
IND		01/2017		22,937	GBP	18,735		153		0
		02/2017	GBP	18,735	$	22,952		0		(155	)
JPM		01/2017	CAD	94		71		1		0
		01/2017	$	555	EUR	522		0		(5	)
RBC		01/2017	GBP	253	$	317		6		0
SCX		01/2017	BRL	955		292		0		(2	)
		01/2017	EUR	66		70		1		0
		01/2017	$	293	BRL	955		0		0
		01/2017		388	GBP	316		2		0
		02/2017		289	BRL	955		2		0
SOG		01/2017	GBP	111	$	140		3		0
Total Forward Foreign Currency Contracts							$	827	$	(330	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CORPORATE AND SOVEREIGN ISSUES - SELL PROTECTION⁽¹⁾

Counterparty	Reference Entity	Fixed Receive Rate			Maturity Date		Implied Credit Spread at December 31, 2016(2)			Notional Amount(3)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Swap Agreements, at Value
																	Asset		Liability
BOA	Russia Government International Bond		1.000	%		06/20/2024		2.248	%	$	400	$	(40	)	$	8	$	0	$	(32	)
BRC	Gazprom S.A.		1.900			12/20/2017		0.513			1,250		0			18		18		0
	JSC VTB Bank		2.340			12/20/2017		1.207			1,250		0			15		15		0
	Russia Government International Bond		1.000			06/20/2024		2.248			400		(46	)		14		0		(32	)
	Russia Government International Bond		1.000			09/20/2024		2.270			300		(25	)		0		0		(25	)
CBK	Russia Government International Bond		1.000			06/20/2024		2.248			500		(53	)		13		0		(40	)
	Russia Government International Bond		1.000			09/20/2024		2.270			300		(26	)		1		0		(25	)
FBF	TNK-BP Finance S.A.		3.150			12/20/2017		0.979			1,500		0			33		33		0
GST	Petrobras Global Finance BV		1.000			09/20/2020		4.072			110		(16	)		4		0		(12	)
	Russia Government International Bond		1.000			03/20/2020		1.121			100		(19	)		18		0		(1	)
	Russia Government International Bond		1.000			06/20/2024		2.248			200		(23	)		7		0		(16	)
HUS	Russia Government International Bond		1.000			06/20/2019		0.814			130		(5	)		6		1		0
	Russia Government International Bond		1.000			06/20/2024		2.248			130		(13	)		2		0		(11	)
	Russia Government International Bond		1.000			09/20/2024		2.270			69		(10	)		4		0		(6	)
JPM	Russia Government International Bond		1.000			06/20/2024		2.248			200		(18	)		2		0		(16	)
												$	(294	)	$	145	$	67	$	(216	)

CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION⁽¹⁾

Counterparty	Index/Tranches	Fixed Receive Rate			Maturity Date		Notional Amount(3)		Premiums (Received)			Unrealized Appreciation/ (Depreciation)			Swap Agreements, at  Value(4)
															Asset		Liability
GST	ABX.HE.AA.6-1 Index		0.320	%		07/25/2045	$	18,103	$	(3,602	)	$	616		$	0	$	(2,986	)
	ABX.HE.PENAAA.7-1 Index		0.090			08/25/2037		5,116		(991	)		(2	)		0		(993	)
									$	(4,593	)	$	614		$	0	$	(3,979	)
Total Swap Agreements									$	(4,887	)	$	759		$	67	$	(4,195	)

⁽¹⁾ If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

52 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

⁽³⁾ The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁴⁾ The prices and resulting values for credit default swap agreements on credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY

The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged/(received) as of December 31, 2016:

(m) Securities with an aggregate market value of $4,875 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of December 31, 2016.

	Financial Derivative Assets								Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Purchased Options		Swap Agreements		Total Over the Counter		Forward Foreign Currency Contracts			Written Options		Swap Agreements			Total Over the Counter			Net Market Value of OTC Derivatives			Collateral Pledged/ (Received)			Net Exposure(5)
BOA	$	164	$	0	$	0	$	164	$	(163	)	$	0	$	(32	)	$	(195	)	$	(31	)	$	0		$	(31	)
BPS		418		0		0		418		0			0		0			0			418			(708	)		(290	)
BRC		0		0		33		33		0			0		(57	)		(57	)		(24	)		3			(21	)
CBK		1		0		0		1		(5	)		0		(65	)		(70	)		(69	)		0			(69	)
FBF		0		0		33		33		0			0		0			0			33			0			33
GLM		76		0		0		76		0			0		0			0			76			0			76
GST		0		0		0		0		0			0		(4,008	)		(4,008	)		(4,008	)		4,846			838
HUS		0		0		1		1		0			0		(17	)		(17	)		(16	)		26			10
IND		153		0		0		153		(155	)		0		0			(155	)		(2	)		0			(2	)
JPM		1		0		0		1		(5	)		0		(16	)		(21	)		(20	)		0			(20	)
RBC		6		0		0		6		0			0		0			0			6			0			6
SCX		5		0		0		5		(2	)		0		0			(2	)		3			0			3
SOG		3		0		0		3		0			0		0			0			3			0			3
Total Over the Counter	$	827	$	0	$	67	$	894	$	(330	)	$	0	$	(4,195	)	$	(4,525	)

⁽⁵⁾  Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements.

FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS

The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Fund.

Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of December 31, 2016:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Total
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared
Swap Agreements	$	0	$	2	$	0	$	0	$	378	$	380
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	827	$	0	$	827
Swap Agreements		0		67		0		0		0		67
	$	0	$	67	$	0	$	827	$	0	$	894
	$	0	$	69	$	0	$	827	$	378	$	1,274
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared
Swap Agreements	$	0	$	0	$	0	$	0	$	559	$	559
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	330	$	0	$	330
Swap Agreements		0		4,195		0		0		0		4,195
	$	0	$	4,195	$	0	$	330	$	0	$	4,525
	$	0	$	4,195	$	0	$	330	$	559	$	5,084

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 53

Schedule of Investments PIMCO Income Opportunity Fund (Cont.)

The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2016:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts			Interest Rate Contracts			Total
Net Realized Gain (Loss) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Swap Agreements	$	0	$	3	$	0	$	0		$	(2,803	)	$	(2,800	)
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	4,827		$	0		$	4,827
Swap Agreements		0		112		0		0			(21	)		91
	$	0	$	112	$	0	$	4,827		$	(21	)	$	4,918
	$	0	$	115	$	0	$	4,827		$	(2,824	)	$	2,118
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Swap Agreements	$	0	$	47	$	0	$	0		$	4,783		$	4,830
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	(1,988	)	$	0		$	(1,988	)
Swap Agreements		0		640		0		0			145			785
	$	0	$	640	$	0	$	(1,988	)	$	145		$	(1,203	)
	$	0	$	687	$	0	$	(1,988	)	$	4,928		$	3,627

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of December 31, 2016 in valuing the Fund’s assets and liabilities:

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2016
Investments in Securities, at Value
Bank Loan Obligations	$	0	$	17,080	$	127	$	17,207
Corporate Bonds & Notes
Banking & Finance		0		66,557		10,450		77,007
Industrials		0		80,823		2,783		83,606
Utilities		0		24,760		0		24,760
Convertible Bonds & Notes
Banking & Finance		0		5,299		0		5,299
Municipal Bonds & Notes
Illinois		0		338		0		338
Iowa		0		153		0		153
West Virginia		0		2,425		0		2,425
U.S. Government Agencies		0		1,394		0		1,394
Non-Agency Mortgage-Backed Securities		0		148,336		786		149,122
Asset-Backed Securities		0		153,873		8,141		162,014
Sovereign Issues		0		2,533		0		2,533
Common Stocks
Consumer Discretionary		230		0		0		230
Financials		0		0		301		301
Convertible Preferred Securities
Banking & Finance		0		17,259		0		17,259
Preferred Securities
Banking & Finance		1,026		0		0		1,026

Category and Subcategory	Level 1		Level 2			Level 3		Fair Value at 12/31/2016
Short-Term Instruments
Repurchase Agreements	$	0	$	17,165		$	0	$	17,165
U.S. Treasury Bills		0		6,832			0		6,832
Total Investments	$	1,256	$	544,827		$	22,588	$	568,671
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared		0		380			0		380
Over the counter		0		894			0		894
	$	0	$	1,274		$	0	$	1,274
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared		0		(559	)		0		(559	)
Over the counter		0		(4,525	)		0		(4,525	)
	$	0	$	(5,084	)	$	0	$	(5,084	)
Total Financial Derivative Instruments	$	0	$	(3,810	)	$	0	$	(3,810	)
Totals	$	1,256	$	541,017		$	22,588	$	564,861

There were no significant transfers between Levels 1 and 2 during the period ended December 31, 2016.

54 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Fund during the period ended December 31, 2016:

Category and Subcategory	Beginning Balance at 06/30/2016		Net Purchases		Net Sales			Accrued Discounts/ (Premiums)		Realized Gain/(Loss)			Net Change in Unrealized Appreciation/ (Depreciation)(1)			Transfers into Level 3		Transfers out of Level 3			Ending Balance at 12/31/2016		Net Change in Unrealized Appreciation/ (Depreciation) on Investments Held  at 12/31/2016(1)
Investments in Securities, at Value
Bank Loan Obligations	$	222	$	0	$	0		$	0	$	0		$	(95	)	$	0	$	0		$	127	$	(95	)
Corporate Bonds & Notes
Banking & Finance		10,482		0		(32	)		15		0			(15	)		0		0			10,450		(15	)
Industrials		5,369		0		0			16		(12	)		(99	)		0		(2,491	)		2,783		(37	)
Non-Agency Mortgage-Backed Securities		879		0		(26	)		3		1			(71	)		0		0			786		(71	)
Asset-Backed Securities		66		8,119		0			75		0			(119	)		0		0			8,141		(119	)
Common Stocks
Financials		211		0		0			0		0			90			0		0			301		90
Warrants
Industrials		0		0		0			0		(40	)		40			0		0			0		0
Totals	$	17,229	$	8,119	$	(58	)	$	109	$	(51	)	$	(269	)	$	0	$	(2,491	)	$	22,588	$	(247	)

The following is a summary of significant unobservable inputs used in the fair valuations of assets and liabilities categorized within Level 3 of the fair value hierarchy:

Category and Subcategory	Ending Balance at 12/31/2016		Valuation Technique		Unobservable Inputs		Input Value(s) (% Unless Noted Otherwise)
Investments in Securities, at Value
Bank Loan Obligations	$	127		Other Valuation Techniques(2)				—
Corporate Bonds & Notes
Banking & Finance		2,899		Proxy Pricing		Base Price		102.667
		7,551		Reference Instrument		Spread movement		63.962-170.000 bps
Industrials		2,783		Proxy Pricing		Base Price		99.500
Non-Agency Mortgage-Backed Securities		786		Proxy Pricing		Base Price		6.650-99.600
Asset-Backed Securities		8,141		Proxy Pricing		Base Price		3.141-99,920
Common Stocks
Financials		301		Other Valuation Techniques(2)		—		—
Total	$	22,588

⁽¹⁾  Any difference between Net Change in Unrealized Appreciation/(Depreciation) and Net Change in Unrealized Appreciation/(Depreciation) on Investments Held at December 31, 2016 may be due to an investment no longer held or categorized as Level 3 at period end.

⁽²⁾  Includes valuation techniques not defined in the Notes to Financial Statements as securities valued using such techniques are not considered significant to the Fund.

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 55

Schedule of Investments PIMCO Strategic Income Fund, Inc.

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
INVESTMENTS IN SECURITIES 294.5%
BANK LOAN OBLIGATIONS 2.6%
Energy Future Intermediate Holding Co. LLC
4.250% due 06/30/2017	$		7,338	$		7,395
iHeartCommunications, Inc.
7.520% due 01/30/2019			900			734
Sequa Corp.
5.250% due 06/19/2017			485			464
Total Bank Loan Obligations (Cost $8,667)						8,593
CORPORATE BONDS & NOTES 24.4%
BANKING & FINANCE 15.3%
Barclays Bank PLC
7.625% due 11/21/2022 (i)			800			880
14.000% due 06/15/2019 (e)	GBP		1,300			1,971
Blackstone CQP Holdco LP
9.296% due 03/19/2019	$		11,482			11,582
BNP Paribas S.A.
7.375% due 08/19/2025 (e)			2,000			2,015
Cantor Fitzgerald LP
7.875% due 10/15/2019 (i)			930			1,031
Cooperatieve Rabobank UA
11.000% due 06/30/2019 (e)			4,166			4,912
Deutsche Bank AG
4.250% due 10/14/2021 (i)			3,200			3,213
Exeter Finance Corp.
9.750% due 05/20/2019			2,400			2,279
Jefferies LoanCore LLC
6.875% due 06/01/2020 (i)			1,000			960
KGH Intermediate Holdco LLC
12.000% due 08/08/2019 (g)			4,275			4,233
Navient Corp.
8.450% due 06/15/2018 (i)			1,539			1,662
Neuberger Berman Group LLC
4.875% due 04/15/2045 (i)			1,200			954
Pinnacol Assurance
8.625% due 06/25/2034 (g)			2,600			2,599
Royal Bank of Scotland Group PLC
8.625% due 08/15/2021 (e)(i)			1,000			1,023
Sberbank of Russia Via SB Capital S.A.
6.125% due 02/07/2022 (i)			2,000			2,179
SL Green Realty Corp.
7.750% due 03/15/2020 (i)			4,500			5,081
Spirit Realty LP
4.450% due 09/15/2026 (i)			3,300			3,111
						49,685
INDUSTRIALS 5.5%
Caesars Entertainment Operating Co., Inc.
8.500% due 02/15/2020 ^(f)			1,312			1,378
9.000% due 02/15/2020 ^(f)			65			68
Concordia International Corp.
9.000% due 04/01/2022			300			255
CVS Pass-Through Trust
7.507% due 01/10/2032			836			1,019
Enterprise Inns PLC
6.875% due 05/09/2025	GBP		620			803
Forbes Energy Services Ltd.
9.000% due 06/15/2019 ^(f)	$		240			86
iHeartCommunications, Inc.
9.000% due 03/01/2021			400			297
Kinder Morgan, Inc.
5.300% due 12/01/2034 (i)			1,500			1,524
7.750% due 01/15/2032 (i)			4,500			5,521
Millar Western Forest Products Ltd.
8.500% due 04/01/2021			48			27
Spanish Broadcasting System, Inc.
12.500% due 04/15/2017 (i)			1,000			1,004

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
UAL Pass-Through Trust
6.636% due 01/02/2024	$		1,698	$		1,832
9.750% due 07/15/2018			234			235
UCP, Inc.
8.500% due 10/21/2017			3,700			3,677
						17,726
UTILITIES 3.6%
Gazprom Neft OAO Via GPN Capital S.A.
6.000% due 11/27/2023 (i)			7,150			7,615
Gazprom OAO Via Gaz Capital S.A.
8.625% due 04/28/2034 (i)			2,600			3,365
Illinois Power Generating Co.
6.300% due 04/01/2020 ^			115			41
7.950% due 06/01/2032 ^			273			98
Petrobras Global Finance BV
3.873% due 03/17/2020			150			147
5.750% due 01/20/2020			140			142
7.875% due 03/15/2019			144			155
						11,563
Total Corporate Bonds & Notes (Cost $76,025)						78,974
MUNICIPAL BONDS & NOTES 0.5%
WEST VIRGINIA 0.5%
Tobacco Settlement Finance Authority, West Virginia Revenue Bonds, Series 2007
7.467% due 06/01/2047			1,685			1,525
Total Municipal Bonds & Notes (Cost $1,589)						1,525
U.S. GOVERNMENT AGENCIES 176.4%
Fannie Mae
2.072% due 08/25/2054 (a)(i)			25,995			1,617
2.500% due 12/25/2027 (a)			5,261			438
2.565% due 12/01/2030			170			174
2.699% due 09/01/2028			7			7
2.700% due 04/01/2030			1			1
2.862% due 11/01/2027			50			51
2.900% due 12/01/2028			44			46
2.933% due 03/01/2032			79			79
3.000% due 03/01/2031			60			61
4.250% due 11/25/2024 - 03/25/2033			553			588
4.500% due 09/01/2023 - 08/01/2041			286			308
4.500% due 07/25/2040 - 04/01/2041 (i)			2,195			2,314
5.000% due 12/01/2018 - 07/25/2038			279			300
5.000% due 01/25/2038 (i)			11,129			12,106
5.500% due 07/25/2024			21			23
5.500% due 11/25/2032 - 04/25/2035 (i)			7,885			8,703
5.591% due 12/25/2042			39			42
5.750% due 06/25/2033			35			39
5.807% due 08/25/2043			2,191			2,413
6.000% due 04/25/2017 - 01/25/2044			2,304			2,585
6.000% due 12/01/2032 - 06/01/2040 (i)			7,990			9,086
6.181% due 02/25/2042			614			697
6.225% due 10/25/2042			17			20
6.500% due 10/01/2018 - 11/01/2047			8,448			9,648
6.500% due 12/01/2036 - 07/01/2039 (i)			882			1,014
6.515% due 09/25/2041			583			639
6.790% due 10/25/2042			451			519
6.850% due 12/18/2027			17			19
7.000% due 05/01/2017 - 01/01/2047			1,255			1,388
7.000% due 07/01/2036 - 03/25/2045 (i)			1,334			1,514
7.500% due 12/01/2017 - 06/25/2044			1,960			2,243
7.700% due 03/25/2023			21			23

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
7.805% due 06/19/2041	$		928	$		1,026
8.000% due 09/25/2021 - 06/01/2032			369			404
8.500% due 09/25/2021 - 06/25/2030			692			778
9.458% due 05/15/2021			67			71
9.916% due 07/15/2027			34			35
Fannie Mae, TBA
3.000% due 08/01/2046 - 03/01/2047			193,000			191,312
3.500% due 06/01/2046 - 05/01/2047			234,000			239,347
4.000% due 03/01/2047			3,000			3,148
Freddie Mac
1.776% due 07/25/2032			133			146
1.981% due 11/15/2038 (a)(i)			48,082			2,911
2.048% due 05/15/2038 (a)(i)			24,390			1,961
2.116% due 09/15/2036 (a)(i)			26,438			1,484
2.272% due 08/15/2036 (a)			7,644			497
2.691% due 12/01/2026			6			6
2.749% due 09/01/2031			35			35
2.908% due 04/01/2033			3			4
5.000% due 02/15/2024			9			10
5.500% due 04/01/2039 - 06/15/2041 (i)			7,811			8,750
6.000% due 03/15/2017 - 03/15/2035			889			1,002
6.000% due 02/15/2032 (i)			2,462			2,828
6.500% due 08/01/2021 - 09/01/2047			6,034			6,838
6.500% due 06/15/2031 - 07/01/2037 (i)			3,330			3,755
6.900% due 09/15/2023			328			359
6.950% due 07/15/2021			147			157
7.000% due 06/01/2017 - 10/25/2043			3,295			3,674
7.000% due 03/15/2029 - 08/01/2036 (i)			3,135			3,521
7.500% due 05/15/2024 - 02/25/2042			1,329			1,468
7.500% due 04/01/2028 - 12/01/2030 (i)			1,478			1,719
8.000% due 08/15/2022 - 04/15/2030			306			338
8.306% due 12/25/2027			1,599			1,688
11.506% due 03/25/2025			396			465
Freddie Mac, TBA
4.000% due 11/01/2046			3,000			3,150
Ginnie Mae
6.000% due 04/15/2029 - 12/15/2038			803			917
6.000% due 07/15/2037 - 11/15/2038 (i)			1,462			1,715
6.500% due 11/20/2024 - 10/20/2038			106			114
6.500% due 04/15/2032 - 05/15/2032 (i)			708			809
7.000% due 04/15/2024 - 06/15/2026			57			61
7.500% due 02/15/2017 - 03/15/2029			831			877
8.000% due 04/15/2017 - 11/15/2022			7			8
8.500% due 05/15/2022 - 02/15/2031			11			13
9.000% due 12/15/2017 - 01/15/2020			91			93
Ginnie Mae, TBA
4.000% due 09/01/2046			20,000			21,226
Small Business Administration
4.625% due 02/01/2025			149			157
5.510% due 11/01/2027			496			542
5.780% due 08/01/2027			47			52
5.820% due 07/01/2027			52			57
6.300% due 06/01/2018			21			22
7.200% due 06/01/2017			1			1
Vendee Mortgage Trust
6.500% due 03/15/2029			189			214
6.750% due 02/15/2026 - 06/15/2026			128			144
7.500% due 09/15/2030			2,777			3,281
Total U.S. Government Agencies (Cost $575,816)						571,895

56 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
U.S. TREASURY OBLIGATIONS 19.6%
U.S. Treasury Notes
2.000% due 08/15/2025 (i)(k)	$		65,700	$		63,563
Total U.S. Treasury Obligations (Cost $64,990)						63,563
NON-AGENCY MORTGAGE-BACKED SECURITIES 43.4%
Adjustable Rate Mortgage Trust
2.936% due 07/25/2035			791			721
3.255% due 08/25/2035			1,928			1,846
Banc of America Mortgage Trust
2.961% due 02/25/2035			28			28
Banc of America Re-REMIC Trust
5.686% due 04/24/2049			2,833			2,840
Bancorp Commercial Mortgage Trust
6.741% due 11/15/2033			4,500			4,517
BCAP LLC Trust
0.762% due 07/26/2036			211			163
3.048% due 10/26/2036			2,925			2,595
3.073% due 10/26/2033			130			113
3.075% due 06/26/2035			43			39
Bear Stearns ALT-A Trust
3.184% due 08/25/2036 ^			455			334
Bear Stearns Commercial Mortgage Securities Trust
5.606% due 12/11/2040			5,729			5,457
7.000% due 05/20/2030			988			1,013
Celtic Residential Irish Mortgage Securitisation PLC
0.000% due 11/13/2047	EUR		5,602			5,854
0.636% due 12/14/2048	GBP		5,063			6,194
Citigroup Mortgage Loan Trust, Inc.
7.000% due 09/25/2033	$		4			4
Commercial Mortgage Loan Trust
6.095% due 12/10/2049			805			510
Countrywide Alternative Loan Trust
0.966% due 07/25/2046 ^			2,422			1,780
5.500% due 05/25/2022 ^			37			27
6.500% due 07/25/2035 ^			782			531
Countrywide Home Loan Mortgage Pass-Through Trust
1.396% due 03/25/2035			2,406			1,836
2.626% due 03/25/2046 ^			3,763			2,177
3.206% due 08/25/2034			754			689
Countrywide Home Loan Reperforming REMIC Trust
7.500% due 11/25/2034			1,358			1,374
7.500% due 06/25/2035 ^			236			242
Credit Suisse Commercial Mortgage Trust
5.695% due 09/15/2040			1,522			1,544
Credit Suisse First Boston Mortgage Securities Corp.
1.906% due 03/25/2034 ^			421			411
Credit Suisse First Boston Mortgage-Backed Trust
7.000% due 02/25/2034			548			601
Credit Suisse Mortgage Capital Certificates
6.500% due 03/25/2036 ^			1,227			731
Emerald Mortgages PLC
0.000% due 07/15/2048	EUR		2,983			3,080
Epic Drummond Ltd.
0.000% due 01/25/2022			914			952
Eurosail PLC
1.977% due 09/13/2045	GBP		1,751			1,711
2.627% due 09/13/2045			1,251			1,168
4.227% due 09/13/2045			1,063			976
GE Commercial Mortgage Corp. Trust
5.606% due 12/10/2049	$		5,000			5,007
GMAC Mortgage Corp. Loan Trust
3.699% due 08/19/2034			154			148
GSAA Trust
6.000% due 04/01/2034			1,198			1,246
GSMPS Mortgage Loan Trust
6.361% due 06/19/2027			46			45
7.000% due 06/25/2043			3,082			3,267
8.000% due 09/19/2027			652			670
GSR Mortgage Loan Trust
1.086% due 12/25/2034			495			445
2.220% due 03/25/2033			3			3
6.500% due 01/25/2034			311			323

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
JPMorgan Commercial Mortgage-Backed Securities Trust
5.716% due 03/18/2051	$		4,000	$		4,021
JPMorgan Mortgage Trust
3.016% due 10/25/2036 ^			3,178			2,994
5.500% due 08/25/2022 ^			31			30
5.500% due 06/25/2037 ^			588			581
Lehman XS Trust
1.434% due 09/25/2047			6,630			5,481
MASTR Adjustable Rate Mortgages Trust
3.307% due 10/25/2034			1,174			1,038
MASTR Alternative Loan Trust
6.250% due 07/25/2036			487			416
6.500% due 03/25/2034			954			1,018
7.000% due 04/25/2034			66			71
MASTR Reperforming Loan Trust
7.000% due 05/25/2035			4,564			4,521
7.500% due 07/25/2035			2,435			2,475
Merrill Lynch Mortgage Trust
5.826% due 06/12/2050			5,100			4,953
Morgan Stanley Capital Trust
5.690% due 04/15/2049			6,041			5,924
Morgan Stanley Resecuritization Trust
2.658% due 12/26/2046			7,956			5,749
NAAC Reperforming Loan REMIC Trust
7.000% due 10/25/2034 ^			1,240			1,273
7.500% due 03/25/2034 ^			3,332			3,100
7.500% due 10/25/2034 ^			3,721			3,942
Newgate Funding PLC
0.934% due 12/15/2050	EUR		2,451			2,219
1.184% due 12/15/2050			2,451			2,105
1.373% due 12/15/2050	GBP		3,375			3,786
1.623% due 12/15/2050			2,772			3,022
RBSSP Resecuritization Trust
6.000% due 02/26/2037	$		4,790			3,705
6.250% due 12/26/2036			6,479			4,036
Residential Accredit Loans, Inc. Trust
6.000% due 08/25/2035 ^			2,033			1,851
Residential Asset Mortgage Products Trust
8.500% due 10/25/2031			583			680
8.500% due 11/25/2031			956			949
Structured Asset Mortgage Investments Trust
2.067% due 08/25/2047 ^			3,595			3,039
Structured Asset Securities Corp. Mortgage Loan Trust
7.500% due 10/25/2036 ^			3,284			2,889
WaMu Mortgage Pass-Through Certificates Trust
2.720% due 05/25/2035 (i)			348			348
Washington Mutual Mortgage Pass-Through Certificates Trust
7.000% due 03/25/2034			172			188
7.500% due 04/25/2033			505			541
Wells Fargo Mortgage-Backed Securities Trust
3.010% due 06/25/2035			359			371
3.083% due 04/25/2036 ^			43			42
Total Non-Agency Mortgage-Backed Securities (Cost $135,159)						140,570
ASSET-BACKED SECURITIES 17.8%
Access Financial Manufactured Housing Contract Trust
7.650% due 05/15/2021			209			66
Airspeed Ltd.
0.974% due 06/15/2032			1,966			1,539
Ameriquest Mortgage Securities, Inc. Asset-Backed Pass-Through Certificates
4.281% due 11/25/2032 ^			251			8
Bear Stearns Asset-Backed Securities Trust
0.953% due 09/25/2034			693			615
Citigroup Mortgage Loan Trust, Inc.
0.916% due 12/25/2036			5,469			3,401
0.976% due 12/25/2036			2,795			1,512
1.016% due 03/25/2037 (i)			6,980			5,363
Conseco Finance Securitizations Corp.
7.960% due 05/01/2031			1,672			1,216
7.970% due 05/01/2032			269			155

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Conseco Financial Corp.
6.530% due 02/01/2031	$		153	$		152
7.050% due 01/15/2027			169			178
Countrywide Asset-Backed Certificates
0.886% due 12/25/2036 ^			3,909			3,866
0.896% due 06/25/2047 ^(i)			9,855			7,148
0.956% due 06/25/2037 ^			2,772			2,049
0.956% due 06/25/2047			7,039			5,425
1.046% due 06/25/2037 (i)			8,449			5,929
4.825% due 07/25/2036 (i)			11,700			11,640
Countrywide Asset-Backed Certificates Trust
2.234% due 11/25/2034			2,297			1,221
Credit-Based Asset Servicing and Securitization LLC
6.020% due 12/25/2037			745			776
Greenpoint Manufactured Housing
8.300% due 10/15/2026			814			896
National Collegiate Commutation Trust
0.000% due 03/25/2038			10,400			4,620
Oakwood Mortgage Investors, Inc.
0.934% due 06/15/2032			21			19
Residential Asset Mortgage Products Trust
8.500% due 12/25/2031			21			17
Total Asset-Backed Securities (Cost $58,017)						57,811
SOVEREIGN ISSUES 0.1%
Costa Rica Government International Bond
7.000% due 04/04/2044			500			459
Total Sovereign Issues (Cost $500)						459
		SHARES
COMMON STOCKS 0.1%
ENERGY 0.1%
SemGroup Corp. ‘A’			7,966			333
Total Common Stocks (Cost $221)						333
SHORT-TERM INSTRUMENTS 9.6%
REPURCHASE AGREEMENTS (h) 1.7%
						5,372
		PRINCIPAL AMOUNT (000S)
SHORT-TERM NOTES 3.4%
Federal Home Loan Bank
0.487% due 01/23/2017 (c)(d)	$		900			900
0.497% due 01/04/2017 (c)(d)			1,400			1,400
0.507% due 01/12/2017 - 01/25/2017 (c)(d)			7,100			7,098
0.528% due 02/01/2017 (c)(d)			1,700			1,699
						11,097
U.S. TREASURY BILLS 4.5%
0.451% due 01/12/2017 - 03/09/2017 (b)(c)(i)(m)			14,634			14,628
Total Short-Term Instruments (Cost $31,097)						31,097
Total Investments in Securities (Cost $952,081)						954,820
Total Investments 294.5% (Cost $952,081)				$		954,820
Financial Derivative Instruments (j)(l) (0.3)% (Cost or Premiums, net $(695))						(909	)
Other Assets and Liabilities, net (194.2)%						(629,651	)
Net Assets 100.0%				$		324,260

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 57

Schedule of Investments PIMCO Strategic Income Fund, Inc. (Cont.)

NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*, EXCEPT NUMBER OF CONTRACTS):

* A zero balance may reflect actual amounts rounding to less than one thousand.

^ Security is in default.

(a) Interest only security.

(b) Coupon represents a weighted average yield to maturity.

(c) Zero coupon security.

(d) Coupon represents a yield to maturity.

(e) Perpetual maturity; date shown, if applicable, represents next contractual call date.

(f) Security is subject to a forbearance agreement entered into by the Fund which forbears the Fund from taking action to, among other things, accelerate and collect payments on the subject note with respect to specified events of default.

(g)  RESTRICTED SECURITIES:

Issuer Description	Coupon		Maturity Date		Acquisition Date		Cost		Market Value		Market Value as Percentage of Net Assets
KGH Intermediate Holdco LLC		12.000%		08/08/2019		08/07/2014	$	4,226	$	4,233		1.31	%
Pinnacol Assurance		8.625		06/25/2034		06/23/2014		2,600		2,599		0.80
							$	6,826	$	6,832		2.11	%

BORROWINGS AND OTHER FINANCING TRANSACTIONS

(h)  REPURCHASE AGREEMENTS:

Counterparty	Lending Rate			Settlement Date		Maturity Date		Principal Amount		Collateralized By	Collateral (Received)			Repurchase Agreements, at Value		Repurchase Agreement Proceeds to be Received(1)
BOS		0.400	%		12/30/2016		01/03/2017	$	2,300	U.S. Treasury Bonds 2.875% due 05/15/2043	$	(2,403	)	$	2,300	$	2,300
JPS		0.610			12/30/2016		01/03/2017		900	Ginnie Mae 3.000% due 04/20/2046		(948	)		900		900
SSB		0.010			12/30/2016		01/03/2017		2,172	U.S. Treasury Notes 1.000% due 05/15/2018(2)		(2,216	)		2,172		2,172
Total Repurchase Agreements											$	(5,567	)	$	5,372	$	5,372

⁽¹⁾ Includes accrued interest.

⁽²⁾ Collateral is held in custody by the counterparty.

REVERSE REPURCHASE AGREEMENTS:

Counterparty	Borrowing Rate(3)			Borrowing Date		Maturity Date		Amount Borrowed(3)			Payable for Reverse Repurchase Agreements
BPS		1.200	%		11/14/2016		01/13/2017	$	(18,745	)	$	(18,776	)
		1.270			10/13/2016		01/13/2017		(5,282	)		(5,297	)
		1.280			10/18/2016		01/18/2017		(3,470	)		(3,480	)
		1.290			10/31/2016		01/31/2017		(3,032	)		(3,039	)
		1.330			12/08/2016		03/08/2017		(4,771	)		(4,776	)
		1.370			12/02/2016		03/02/2017		(3,014	)		(3,018	)
		1.376			11/14/2016		01/13/2017		(16,390	)		(16,421	)
		1.580			10/27/2016		01/27/2017		(10,537	)		(10,569	)
		1.600			11/10/2016		02/10/2017		(2,592	)		(2,598	)
		1.600			11/14/2016		01/13/2017		(11,339	)		(11,364	)
		1.690			10/31/2016		01/31/2017		(1,462	)		(1,466	)
		1.700			10/31/2016		01/31/2017		(2,342	)		(2,349	)
		2.386			10/31/2016		01/31/2017		(9,371	)		(9,411	)
		2.513			12/13/2016		03/16/2017		(9,019	)		(9,032	)
		2.840			11/28/2016		05/26/2017		(4,723	)		(4,736	)
JML		1.650			12/05/2016		01/10/2017		(6,013	)		(6,021	)
		1.650			12/06/2016		01/10/2017		(2,446	)		(2,449	)
		1.650			12/13/2016		01/10/2017		(1,771	)		(1,773	)
UBS		1.850			12/28/2016		03/14/2017		(825	)		(825	)
Total Reverse Repurchase Agreements											$	(117,400	)

58 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

SALE-BUYBACK TRANSACTIONS:

Counterparty	Borrowing Rate(3)			Borrowing Date		Maturity Date		Amount Borrowed(3)			Payable for Sale-Buyback Transactions
MSC		1.010	%		12/13/2016		01/03/2017	$	(52,944	)	$	(52,975	)
Total Sale-Buyback Transactions											$	(52,975	)

MORTGAGE DOLLAR ROLLS:

Counterparty	Borrowing Rate(3)			Borrowing Date		Maturity Date		Amount Received		Amount Borrowed(3)
BOS		2.163	%		01/18/2017		02/12/2017	$	3,980	$	(3,980	)
FOB		2.055			01/18/2017		02/12/2017		28,671		(28,671	)
		2.109			01/18/2017		02/12/2017		14,704		(14,704	)
		2.163			01/18/2017		02/12/2017		74,467		(74,467	)
		2.218			01/18/2017		02/12/2017		5,067		(5,067	)
		2.272			01/18/2017		02/12/2017		167,791		(167,791	)
GSC		2.272			01/18/2017		02/12/2017		30,376		(30,376	)
MSC		2.055			01/18/2017		02/12/2017		3,124		(3,124	)
		2.272			01/18/2017		02/12/2017		10,129		(10,129	)
Total Mortgage Dollar Rolls								$	338,309	$	(338,309	)

⁽³⁾  The average amount of borrowings outstanding during the period ended December 31, 2016 was $(560,962) at a weighted average interest rate of 1.578%.

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of December 31, 2016:

(i) Securities with an aggregate market value of $188,425 and cash of $1,750 have been pledged as collateral under the terms of the following master agreements as of December 31, 2016.

Counterparty	Repurchase Agreement Proceeds to be Received		Payable for Reverse Repurchase Agreements			Payable for Sale-Buyback Transactions			Receivable for Mortgage Dollar Rolls		Payable for Mortgage Dollar Rolls			Total Borrowings and Other Financing Transactions			Collateral Pledged/(Received)			Net Exposure(4)
Global/Master Repurchase Agreement
BOS	$	2,300	$	0		$	0		$	0	$	0		$	2,300		$	(2,403	)	$	(103	)
BPS		0		(106,332	)		0			0		0			(106,332	)		123,288			16,956
JML		0		(10,243	)		0			0		0			(10,243	)		13,159			2,916
JPS		900		0			0			0		0			900			(948	)		(48	)
SSB		2,172		0			0			0		0			2,172			(2,216	)		(44	)
UBS		0		(825	)		0			0		0			(825	)		1,023			198
Master Securities Forward Transaction Agreement
BOS		0		0			0			3,980		(3,980	)		0			0			0
FOB		0		0			0			290,700		(290,700	)		0			0			0
GSC		0		0			0			30,376		(30,376	)		0			0			0
MSC		0		0			(52,975	)		13,253		(13,253	)		(52,975	)		52,706			(269	)
Total Borrowings and Other Financing Transactions	$	5,372	$	(117,400	)	$	(52,975	)	$	338,309	$	(338,309	)

⁽⁴⁾  Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements.

CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS

Remaining Contractual Maturity of the Agreements

	Overnight and Continuous		Up to 30 days			31-90 days			Greater Than 90 days			Total
Reverse Repurchase Agreements
Corporate Bonds & Notes	$	0	$	(19,020	)	$	(15,473	)	$	0		$	(34,493	)
U.S. Government Agencies		0		(57,130	)		(2,598	)		0			(59,728	)
Asset-Backed Securities		0		0			(18,443	)		(4,736	)		(23,179	)
Total	$	0	$	(76,150	)	$	(36,514	)	$	(4,736	)	$	(117,400	)

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 59

Schedule of Investments PIMCO Strategic Income Fund, Inc. (Cont.)

	Overnight and Continuous		Up to 30 days			31-90 days			Greater Than 90 days			Total
Sale-Buyback Transactions
U.S. Treasury Obligations	$	0	$	(52,975	)	$	0		$	0		$	(52,975	)
Total	$	0	$	(52,975	)	$	0		$	0		$	(52,975	)
Total Borrowings	$	0	$	(129,125	)	$	(36,514	)	$	(4,736	)	$	(170,375	)
Gross amount of recognized liabilities for reverse repurchase agreements and sale-buyback financing transactions												$	(170,375	)

(j)  FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED

FUTURES CONTRACTS:

Description	Type	Expiration Month		# of Contracts		Unrealized (Depreciation)			Variation Margin
									Asset		Liability
U.S. Treasury 2-Year Note March Futures	Long		03/2017		138	$	(30	)	$	9	$	0
Total Futures Contracts						$	(30	)	$	9	$	0

SWAP AGREEMENTS:

INTEREST RATE SWAPS

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Maturity Date		Notional Amount		Market Value			Unrealized Appreciation/ (Depreciation)			Variation Margin
															Asset		Liability
Pay	1-Year BRL-CDI		15.590	%		01/04/2021		BRL      7,200	$	248		$	10		$	0	$	(3	)
Pay	3-Month CAD-Bank Bill		3.300			06/19/2024		CAD    11,200		970			450			26		0
Receive	3-Month CAD-Bank Bill		3.500			06/20/2044		3,800		(709	)		(576	)		0		(33	)
Pay	3-Month USD-LIBOR		2.500			06/17/2022		$    31,500		780			(54	)		46		0
Receive	3-Month USD-LIBOR		1.750			12/21/2023		65,200		1,724			3,486			0		(134	)
Receive	3-Month USD-LIBOR		1.750			12/21/2026		84,800		4,545			6,382			0		(284	)
Receive*	3-Month USD-LIBOR		1.500			06/21/2027		7,000		585			(21	)		0		(24	)
Receive	3-Month USD-LIBOR		2.250			12/21/2046		51,640		4,211			8,645			0		(437	)
									$	12,354		$	18,322		$	72	$	(915	)
Total Swap Agreements									$	12,354		$	18,322		$	72	$	(915	)

* This instrument has a forward starting effective date. See Note 2(a) in the Notes to Financial Statements for further information.

FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY

The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of December 31, 2016:

(k) Securities with an aggregate market value of $10,857 and cash of $3,743 have been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2016. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements.

	Financial Derivative Assets								Financial Derivative Liabilities
	Market Value		Variation Margin Asset				Total		Market Value		Variation Margin Liability				Total
	Purchased Options		Futures		Swap Agreements				Written Options		Futures		Swap Agreements
Total Exchange-Traded or Centrally Cleared	$	0	$	9	$	72	$	81	$	0	$	0	$	(915)	$	(915)

(l)  FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER

FORWARD FOREIGN CURRENCY CONTRACTS:

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
BOA		01/2017	BRL	838	$	245	$	0	$	(13	)
		01/2017	$	772	BRL	2,515		1		0
		01/2017		14,000	EUR	13,461		172		0
		02/2017	EUR	13,461	$	14,019		0		(172	)
BPS		01/2017		13,752		14,590		112		0
		01/2017	GBP	16,170		20,205		275		0
CBK		01/2017	$	501	EUR	473		1		(4	)

60 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
GLM		01/2017	$	467	GBP	375	$	0	$	(5	)
IND		01/2017		19,558		15,975		131		0
		02/2017	GBP	15,975	$	19,571		0		(132	)
RBC		01/2017		129		160		1		0
SCX		01/2017	BRL	838		257		0		0
		01/2017	CAD	171		129		2		0
		01/2017	EUR	182		194		3		0
		01/2017	$	256	BRL	838		1		0
		02/2017	BRL	838	$	254		0		(2	)
SOG		01/2017	GBP	51		64		2		0
Total Forward Foreign Currency Contracts							$	701	$	(328	)

PURCHASED OPTIONS:

OPTIONS ON SECURITIES

Counterparty	Description	Strike Price		Expiration Date		Notional Amount		Cost		Market Value
DUB	Put - OTC Fannie Mae, TBA 3.000% due 03/01/2047	$	64.000		03/06/2017		$    50,000	$	2	$	0
FAR	Put - OTC Fannie Mae, TBA 3.000% due 01/01/2047		80.000		01/11/2017		61,000		2		0
	Put - OTC Fannie Mae, TBA 3.000% due 02/01/2047		78.000		02/06/2017		66,000		2		0
	Put - OTC Fannie Mae, TBA 3.500% due 01/01/2047		84.000		01/11/2017		67,000		3		0
	Put - OTC Fannie Mae, TBA 3.500% due 02/01/2047		82.000		02/06/2017		118,000		5		0
								$	14	$	0
Total Purchased Options								$	14	$	0

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CORPORATE AND SOVEREIGN ISSUES - SELL PROTECTION⁽¹⁾

Counterparty	Reference Entity	Fixed Receive Rate			Maturity Date		Implied Credit Spread at December 31, 2016(2)			Notional Amount(3)		Premiums (Received)			Unrealized Appreciation/ (Depreciation)		Swap Agreements, at Value
																	Asset		Liability
BOA	Indonesia Government International Bond		1.000	%		06/20/2019		0.830	%		$      100	$	(3	)	$	3	$	0	$	0
BPS	Petrobras Global Finance BV		1.000			12/20/2019		3.483			3,100		(306	)		92		0		(214	)
DUB	Indonesia Government International Bond		1.000			06/20/2019		0.830			300		(11	)		12		1		0
GST	Petrobras Global Finance BV		1.000			09/20/2020		4.072			10		(1	)		0		0		(1	)
HUS	Petrobras Global Finance BV		1.000			12/20/2019		3.483			3,400		(338	)		103		0		(235	)
JPM	Indonesia Government International Bond		1.000			06/20/2019		0.830			800		(27	)		31		4		0
	Russia Government International Bond		1.000			12/20/2020		1.403			200		(23	)		20		0		(3	)
												$	(709	)	$	261	$	5	$	(453	)
Total Swap Agreements												$	(709	)	$	261	$	5	$	(453	)

⁽¹⁾  If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾  Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽³⁾  The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 61

Schedule of Investments PIMCO Strategic Income Fund, Inc. (Cont.)

FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY

The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged/(received) as of December 31, 2016:

(m) Securities with an aggregate market value of $406 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of December 31, 2016.

	Financial Derivative Assets								Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Purchased Options		Swap Agreements		Total Over the Counter		Forward Foreign Currency Contracts			Written Options		Swap Agreements			Total Over the Counter			Net Market Value of OTC Derivatives			Collateral Pledged/ (Received)			Net Exposure(4)
BOA	$	173	$	0	$	0	$	173	$	(185	)	$	0	$	0		$	(185	)	$	(12	)	$	0		$	(12	)
BPS		387		0		0		387		0			0		(214	)		(214	)		173			(300	)		(127	)
CBK		1		0		0		1		(4	)		0		0			(4	)		(3	)		0			(3	)
DUB		0		0		1		1		0			0		0			0			1			0			1
GLM		0		0		0		0		(5	)		0		0			(5	)		(5	)		0			(5	)
GST		0		0		0		0		0			0		(1	)		(1	)		(1	)		0			(1	)
HUS		0		0		0		0		0			0		(235	)		(235	)		(235	)		406			171
IND		131		0		0		131		(132	)		0		0			(132	)		(1	)		0			(1	)
JPM		0		0		4		4		0			0		(3	)		(3	)		1			0			1
RBC		1		0		0		1		0			0		0			0			1			0			1
SCX		6		0		0		6		(2	)		0		0			(2	)		4			0			4
SOG		2		0		0		2		0			0		0			0			2			0			2
Total Over the Counter	$	701	$	0	$	5	$	706	$	(328	)	$	0	$	(453	)	$	(781	)

⁽⁴⁾  Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements.

FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS

The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Fund.

Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of December 31, 2016:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Total
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared
Futures	$	0	$	0	$	0	$	0	$	9	$	9
Swap Agreements		0		0		0		0		72		72
	$	0	$	0	$	0	$	0	$	81	$	81
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	701	$	0	$	701
Swap Agreements		0		5		0		0		0		5
	$	0	$	5	$	0	$	701	$	0	$	706
	$	0	$	5	$	0	$	701	$	81	$	787
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared
Swap Agreements	$	0	$	0	$	0	$	0	$	915	$	915
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	328	$	0	$	328
Swap Agreements		0		453		0		0		0		453
	$	0	$	453	$	0	$	328	$	0	$	781
	$	0	$	453	$	0	$	328	$	915	$	1,696

62 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2016:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts			Interest Rate Contracts			Total
Net Realized Gain (Loss) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Futures	$	0	$	0	$	0	$	0		$	(41	)	$	(41	)
Swap Agreements		0		0		0		0			(9,414	)		(9,414	)
	$	0	$	0	$	0	$	0		$	(9,455	)	$	(9,455	)
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	3,192		$	0		$	3,192
Purchased Options		0		0		0		0			(20	)		(20	)
Swap Agreements		0		40		0		0			238			278
	$	0	$	40	$	0	$	3,192		$	218		$	3,450
	$	0	$	40	$	0	$	3,192		$	(9,237	)	$	(6,005	)
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Futures	$	0	$	0	$	0	$	0		$	(240	)	$	(240	)
Swap Agreements		0		0		0		0			27,975			27,975
	$	0	$	0	$	0	$	0		$	27,735		$	27,735
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	(810	)	$	0		$	(810	)
Purchased Options		0		0		0		0			(5	)		(5	)
Swap Agreements		0		524		0		0			(230	)		294
	$	0	$	524	$	0	$	(810	)	$	(235	)	$	(521	)
	$	0	$	524	$	0	$	(810	)	$	27,500		$	27,214

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of December 31, 2016 in valuing the Fund’s assets and liabilities:

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2016
Investments in Securities, at Value
Bank Loan Obligations	$	0	$	8,593	$	0	$	8,593
Corporate Bonds & Notes
Banking & Finance		0		40,574		9,111		49,685
Industrials		0		14,049		3,677		17,726
Utilities		0		11,563		0		11,563
Municipal Bonds & Notes
West Virginia		0		1,525		0		1,525
U.S. Government Agencies		0		571,895		0		571,895
U.S. Treasury Obligations		0		63,563		0		63,563
Non-Agency Mortgage-Backed Securities		0		140,570		0		140,570
Asset-Backed Securities		0		53,191		4,620		57,811
Sovereign Issues		0		459		0		459
Common Stocks
Energy		333		0		0		333
Short-Term Instruments
Repurchase Agreements		0		5,372		0		5,372
Short-Term Notes		0		11,097		0		11,097
U.S. Treasury Bills		0		14,628		0		14,628
Total Investments	$	333	$	937,079	$	17,408	$	954,820

Category and Subcategory	Level 1		Level 2			Level 3		Fair Value at 12/31/2016
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared	$	9	$	72		$	0	$	81
Over the counter		0		706			0		706
	$	9	$	778		$	0	$	787
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared		0		(915	)		0		(915	)
Over the counter		0		(781	)		0		(781	)
	$	0	$	(1,696	)	$	0	$	(1,696	)
Total Financial Derivative Instruments	$	9	$	(918	)	$	0	$	(909	)
Totals	$	342	$	936,161		$	17,408	$	953,911

There were no significant transfers between Levels 1 and 2 during the period ended December 31, 2016.

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 63

Schedule of Investments PIMCO Strategic Income Fund, Inc. (Cont.)

December 31, 2016 (Unaudited)

The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Fund during the period ended December 31, 2016:

Category and Subcategory	Beginning Balance at 06/30/2016		Net Purchases		Net Sales			Accrued Discounts/ (Premiums)		Realized Gain/(Loss)		Net Change in Unrealized Appreciation/ (Depreciation)(1)			Transfers into Level 3		Transfers out of Level 3		Ending Balance at 12/31/2016		Net Change in Unrealized Appreciation/ (Depreciation) on Investments Held at 12/31/2016(1)
Investments in Securities, at Value
Corporate Bonds & Notes
Banking & Finance	$	9,149	$	0	$	(28	)	$	13	$	0	$	(23	)	$	0	$	0	$	9,111	$	(25	)
Industrials		3,725		0		0			2		0		(50	)		0		0		3,677		(50	)
Asset-Backed Securities		0		4,524		0			80		0		16			0		0		4,620		16
Totals	$	12,874	$	4,524	$	(28	)	$	95	$	0	$	(57	)	$	0	$	0	$	17,408	$	(59	)

The following is a summary of significant unobservable inputs used in the fair valuations of assets and liabilities categorized within Level 3 of the fair value hierarchy:

Category and Subcategory	Ending Balance at 12/31/2016		Valuation Technique	Unobservable Inputs	Input Value(s) (% Unless Noted Otherwise)
Investments in Securities, at Value
Corporate Bonds & Notes
Banking & Finance	$	2,599	Proxy Pricing	Base Price		102.67
		6,512	Reference Instrument	Spread movement		63.96-170 bps
Industrials		3,677	Proxy Pricing	Base Price		99.50
Asset-Backed Securities		4,620	Proxy Pricing	Base Price		43.50-45.50
Total	$	17,408

⁽¹⁾  Any difference between Net Change in Unrealized Appreciation/(Depreciation) and Net Change in Unrealized Appreciation/(Depreciation) on Investments Held at December 31, 2016 may be due to an investment no longer held or categorized as Level 3 at period end.

64 PIMCO CLOSED-END FUNDS See Accompanying Notes

Consolidated Schedule of Investments PIMCO Dynamic Credit and Mortgage Income Fund

December 31, 2016 (Unaudited)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
INVESTMENTS IN SECURITIES 178.7%
BANK LOAN OBLIGATIONS 2.7%
Ancestry.com, Inc.
9.250% due 10/19/2024	$		7,100	$		7,266
iHeartCommunications, Inc.
7.520% due 01/30/2019			24,775			20,212
OGX
13.000% due 04/10/2049 ^			2,107			986
Rackspace Hosting, Inc.
4.500% due 11/03/2023			11,800			11,953
Save-A-Lot
7.000% due 11/29/2023			12,000			11,963
Sequa Corp.
5.250% due 06/19/2017			28,772			27,540
Total Bank Loan Obligations (Cost $85,091)						79,920
CORPORATE BONDS & NOTES 36.1%
BANKING & FINANCE 13.5%
AGFC Capital Trust
6.000% due 01/15/2067 (k)			20,300			10,150
Banco Espirito Santo S.A.
2.625% due 05/08/2017 ^	EUR		6,900			2,070
4.000% due 01/21/2019 ^			15,000			4,500
Banco Popular Espanol S.A.
11.500% due 10/10/2018 (g)(k)			3,700			3,938
Barclays Bank PLC
7.625% due 11/21/2022 (k)	$		4,500			4,947
Barclays PLC
6.500% due 09/15/2019 (g)	EUR		100			103
Blackstone CQP Holdco LP
9.296% due 03/19/2019	$		92,893			93,706
Cantor Commercial Real Estate Co. LP
7.750% due 02/15/2018			100			100
Communications Sales & Leasing, Inc.
8.250% due 10/15/2023			2,330			2,481
Credit Agricole S.A.
7.500% due 06/23/2026 (g)(k)	GBP		20,900			25,844
Exeter Finance Corp.
9.750% due 05/20/2019	$		21,900			20,798
Jefferies Finance LLC
6.875% due 04/15/2022			1,200			1,164
7.500% due 04/15/2021 (k)			16,104			16,003
Jefferies LoanCore LLC
6.875% due 06/01/2020 (k)			6,400			6,144
KGH Intermediate Holdco LLC
12.000% due 08/08/2019 (i)			38,950			38,569
Legg Mason PT
7.130% due 01/10/2021			11,348			11,595
8.600% due 08/10/2021			6,610			7,091
Nationwide Building Society
10.250% due 06/29/2049 (g)	GBP		62			10,127
Navient Corp.
8.000% due 03/25/2020 (k)	$		9,500			10,563
Novo Banco S.A.
5.000% due 05/21/2019	EUR		1,500			1,090
OneMain Financial Holdings LLC
6.750% due 12/15/2019 (k)	$		7,532			7,880
Pinnacol Assurance
8.625% due 06/25/2034 (i)			23,200			23,191
Rio Oil Finance Trust
9.250% due 07/06/2024 (k)			17,220			16,273
9.250% due 07/06/2024			1,102			1,042
9.750% due 01/06/2027 (k)			3,051			2,822
Royal Bank of Scotland Group PLC
7.500% due 08/10/2020 (g)(k)			36,143			34,336
8.000% due 08/10/2025 (g)(k)			6,627			6,362
8.625% due 08/15/2021 (g)			1,500			1,534
Sberbank of Russia Via SB Capital S.A.
6.125% due 02/07/2022			1,900			2,070
6.125% due 02/07/2022 (k)			6,500			7,081

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Springleaf Finance Corp.
7.750% due 10/01/2021	$		3,650	$		3,864
8.250% due 12/15/2020 (k)			4,090			4,458
TIG FinCo PLC
8.500% due 03/02/2020 (k)	GBP		3,318			4,206
8.750% due 04/02/2020			1,100			1,257
UBS Group AG
5.750% due 02/19/2022 (g)(k)	EUR		3,600			4,002
Vnesheconombank Via VEB Finance PLC
6.902% due 07/09/2020 (k)	$		2,100			2,275
6.902% due 07/09/2020			700			758
						394,394
INDUSTRIALS 16.3%
Altice Financing S.A.
7.500% due 05/15/2026 (k)			11,300			11,780
Altice Luxembourg S.A.
7.250% due 05/15/2022 (k)	EUR		3,627			4,095
Boxer Parent Co., Inc. (9.000% Cash or 9.750% PIK)
9.000% due 10/15/2019 (c)(k)	$		28,642			26,995
Caesars Entertainment Operating Co., Inc.
8.500% due 02/15/2020 ^(h)			70,792			74,332
9.000% due 02/15/2020 ^(h)			4,457			4,638
11.250% due 06/01/2017 ^(h)			5,016			5,129
Carlson Travel, Inc.
6.750% due 12/15/2023			750			782
Chesapeake Energy Corp.
4.130% due 04/15/2019			134			135
6.250% due 01/15/2017	EUR		17,100			17,971
Concordia International Corp.
9.000% due 04/01/2022 (k)	$		2,700			2,298
Diamond Resorts International, Inc.
10.750% due 09/01/2024 (k)			13,000			12,805
DriveTime Automotive Group, Inc.
8.000% due 06/01/2021 (k)			6,500			6,329
Enterprise Inns PLC
6.875% due 05/09/2025 (k)	GBP		2,210			2,861
Forbes Energy Services Ltd.
9.000% due 06/15/2019 ^(h)	$		8,140			2,930
Harvest Operations Corp.
2.330% due 04/14/2021 (k)			20,638			20,255
Hellenic Railways Organization S.A.
4.028% due 03/17/2017	EUR		6,400			6,686
5.014% due 12/27/2017			800			824
iHeartCommunications, Inc.
9.000% due 03/01/2021 (k)	$		36,570			27,199
Intelsat Luxembourg S.A.
7.750% due 06/01/2021			15,815			5,259
8.125% due 06/01/2023			1,289			409
Intrepid Aviation Group Holdings LLC
6.875% due 02/15/2019 (k)			40,120			36,108
Mallinckrodt International Finance S.A.
4.750% due 04/15/2023			3,200			2,800
Millar Western Forest Products Ltd.
8.500% due 04/01/2021			18,266			10,138
N&W Global Vending SpA
7.000% due 10/15/2023	EUR		5,560			6,092
OGX Austria GmbH
8.375% due 04/01/2022 ^	$		6,000			0
8.500% due 06/01/2018 ^			48,450			1
Ortho-Clinical Diagnostics, Inc.
6.625% due 05/15/2022 (k)			7,905			7,035
Petroleos de Venezuela S.A.
6.000% due 11/15/2026			1,070			415
Prime Security Services Borrower LLC
9.250% due 05/15/2023 (k)			3,755			4,098
Russian Railways via RZD Capital PLC
7.487% due 03/25/2031	GBP		100			140
Safeway, Inc.
7.250% due 02/01/2031 (k)	$		1,200			1,174
Sequa Corp.
7.000% due 12/15/2017			24,447			13,690

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
SFR Group S.A.
7.375% due 05/01/2026 (k)	$		4,700	$		4,818
Southern Co.
5.500% due 03/15/2057			2,710			2,740
Spanish Broadcasting System, Inc.
12.500% due 04/15/2017 (k)			60,430			60,657
Sterigenics-Nordion Topco LLC (8.125% Cash or 8.875% PIK)
8.125% due 11/01/2021 (c)(k)			3,600			3,591
Tembec Industries, Inc.
9.000% due 12/15/2019 (k)			14,600			13,724
UCP, Inc.
8.500% due 10/21/2017			23,300			23,158
Unique Pub Finance Co. PLC
5.659% due 06/30/2027 (k)	GBP		7,690			10,063
7.395% due 03/28/2024 (k)			3,700			4,771
Westmoreland Coal Co.
8.750% due 01/01/2022 (k)	$		32,972			30,252
Yellowstone Energy LP
5.750% due 12/31/2026			4,311			4,340
						473,517
UTILITIES 6.3%
Frontier Communications Corp.
11.000% due 09/15/2025			2,880			2,984
Gazprom Neft OAO Via GPN Capital S.A.
4.375% due 09/19/2022 (k)			5,400			5,355
6.000% due 11/27/2023 (k)			35,500			37,808
Gazprom OAO Via Gaz Capital S.A.
5.999% due 01/23/2021 (k)			2,525			2,732
6.510% due 03/07/2022			400			443
7.288% due 08/16/2037 (k)			1,388			1,585
8.625% due 04/28/2034 (k)			2,725			3,527
Illinois Power Generating Co.
6.300% due 04/01/2020 ^			34,047			12,257
7.950% due 06/01/2032 ^			31,789			11,444
Odebrecht Drilling Norbe Ltd.
6.350% due 06/30/2022			3,504			1,603
Odebrecht Offshore Drilling Finance Ltd.
6.625% due 10/01/2023 (i)			769			229
6.750% due 10/01/2023 (i)			23,755			6,533
Petrobras Global Finance BV
3.250% due 04/01/2019	EUR		200			216
3.873% due 03/17/2020 (k)	$		5,000			4,900
5.375% due 10/01/2029 (k)	GBP		2,320			2,368
5.750% due 01/20/2020 (k)	$		10,615			10,774
6.250% due 12/14/2026 (k)	GBP		6,398			7,396
6.625% due 01/16/2034 (k)			11,017			11,888
7.875% due 03/15/2019 (k)	$		7,877			8,463
Sierra Hamilton LLC
12.250% due 12/15/2018 (k)			30,000			19,650
Sprint Capital Corp.
6.900% due 05/01/2019 (k)			3,550			3,767
Sprint Communications, Inc.
7.000% due 08/15/2020 (k)			9,850			10,467
Sprint Corp.
7.125% due 06/15/2024 (k)			16,313			16,843
7.875% due 09/15/2023			1,446			1,547
						184,779
Total Corporate Bonds & Notes (Cost $1,209,669)						1,052,690
MUNICIPAL BONDS & NOTES 0.7%
IOWA 0.1%
Iowa Tobacco Settlement Authority Revenue Bonds, Series 2005
6.500% due 06/01/2023			1,390			1,368
NEW JERSEY 0.2%
New Jersey Economic Development Authority Revenue Bonds, Series 2005
6.500% due 09/01/2036			6,635			6,521

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 65

Consolidated Schedule of Investments PIMCO Dynamic Credit and Mortgage Income Fund (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
VIRGINIA 0.0%
Tobacco Settlement Financing Corp., Virginia Revenue Bonds, Series 2007
6.706% due 06/01/2046	$		95	$		76
WEST VIRGINIA 0.4%
Tobacco Settlement Finance Authority, West Virginia Revenue Bonds, Series 2007
7.467% due 06/01/2047			14,360			12,995
Total Municipal Bonds & Notes (Cost $20,354)						20,960
U.S. GOVERNMENT AGENCIES 1.0%
Fannie Mae
3.000% due 01/25/2042 (a)(k)			1,443			149
3.500% due 08/25/2032 (a)(k)			3,138			460
5.244% due 08/25/2038 (a)(k)			1,706			242
5.394% due 02/25/2043 (a)(k)			6,411			996
5.884% due 12/25/2036 (a)(k)			5,081			925
7.336% due 10/25/2042 (k)			2,795			3,009
Freddie Mac
4.000% due 03/15/2027 (a)(k)			1,406			174
5.406% due 10/25/2028			4,600			4,910
5.496% due 09/15/2042 (a)(k)			2,219			301
5.796% due 12/15/2034 (a)			2,578			191
9.756% due 03/25/2029			4,800			4,808
11.256% due 10/25/2028			1,000			1,131
11.506% due 03/25/2025			7,271			8,541
Ginnie Mae
3.500% due 06/20/2042 (a)(k)			1,542			237
5.381% due 08/20/2042 (a)(k)			4,052			824
5.511% due 12/20/2040 (a)(k)			3,920			616
5.993% due 08/16/2039 (a)(k)			4,750			514
Total U.S. Government Agencies (Cost $26,439)						28,028
U.S. TREASURY OBLIGATIONS 0.4%
U.S. Treasury Notes
0.875% due 01/31/2017			10,600			10,604
Total U.S. Treasury Obligations (Cost $10,603)						10,604
NON-AGENCY MORTGAGE-BACKED SECURITIES 48.9%
Adjustable Rate Mortgage Trust
0.906% due 03/25/2037			2,623			1,985
1.016% due 03/25/2036			7,407			4,597
3.589% due 03/25/2037 (k)			5,976			4,802
5.044% due 11/25/2037 ^(k)			1,655			1,207
American Home Mortgage Investment Trust
6.600% due 01/25/2037			5,460			3,016
ASG Resecuritization Trust
6.000% due 06/28/2037 (k)			47,049			34,016
Banc of America Alternative Loan Trust
6.000% due 07/25/2035 ^			180			172
6.000% due 04/25/2036			1,812			1,486
6.000% due 07/25/2046 ^			2,202			1,931
6.500% due 02/25/2036 ^			4,021			3,773
15.277% due 09/25/2035 ^			530			584
Banc of America Commercial Mortgage Trust
5.548% due 06/10/2049			5,697			5,716
5.695% due 07/10/2046 (k)			7,041			7,029
Banc of America Funding Trust
0.966% due 04/25/2037 ^			3,019			2,056
3.000% due 09/20/2046			3,911			3,267
3.277% due 09/20/2047 ^			746			563
3.302% due 04/20/2035 ^			4,719			3,485
3.368% due 09/20/2037			1,326			912
4.679% due 08/26/2036			6,105			4,467
6.000% due 10/25/2037 ^			6,458			4,782
Banc of America Mortgage Trust
5.750% due 10/25/2036 ^			2,672			2,270
5.750% due 05/25/2037 ^(k)			1,876			1,429
6.000% due 10/25/2036 ^			324			279

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Bayview Commercial Asset Trust
0.976% due 03/25/2037	$		304	$		271
0.986% due 12/25/2036			475			412
1.186% due 08/25/2034			227			210
BCAP LLC Trust
0.764% due 05/26/2036			6,264			3,471
0.814% due 02/26/2037 (k)			19,447			11,730
1.084% due 05/26/2035			7,540			4,175
1.241% due 02/26/2047 (k)			21,989			12,866
3.001% due 03/26/2037			3,462			2,868
3.235% due 07/26/2036			5,705			5,286
3.240% due 07/26/2036			1,504			1,227
3.629% due 03/27/2037			9,012			6,427
5.500% due 12/26/2035 (k)			14,965			12,040
6.071% due 10/26/2037			4,795			4,375
7.202% due 06/26/2037			8,216			7,668
7.712% due 11/26/2035			2,805			2,939
8.493% due 07/26/2036			824			806
14.796% due 01/26/2036			12,883			2,852
Bear Stearns Adjustable Rate Mortgage Trust
2.991% due 02/25/2036 ^			1,823			1,540
Bear Stearns ALT-A Trust
1.096% due 08/25/2036 (k)			44,140			37,777
1.256% due 01/25/2036 ^(k)			13,711			12,163
1.881% due 03/25/2035 (k)			7,698			5,927
2.684% due 04/25/2037 (k)			9,158			7,776
2.834% due 03/25/2036			3,401			2,347
3.194% due 08/25/2046			6,394			4,936
3.223% due 12/25/2046 ^			8,321			6,004
3.235% due 07/25/2036 (k)			64,800			35,971
3.515% due 09/25/2035 ^			9,292			7,006
Bear Stearns Asset-Backed Securities Trust
6.000% due 12/25/2035 ^			823			724
Bear Stearns Commercial Mortgage Securities Trust
5.273% due 12/11/2038 (k)			6,655			6,671
Bear Stearns Mortgage Funding Trust
7.500% due 08/25/2036			6,250			5,999
Citigroup Mortgage Loan Trust, Inc.
2.665% due 03/25/2037			5,715			4,777
2.713% due 08/25/2037			5,274			3,903
3.053% due 07/25/2036 ^			4,120			3,011
3.109% due 08/25/2034			6,115			4,562
3.172% due 03/25/2037 ^			3,696			3,178
3.382% due 04/25/2037 ^			1,009			816
5.500% due 12/25/2035			5,012			4,053
6.500% due 09/25/2036			1,906			1,464
Citigroup/Deutsche Bank Commercial Mortgage Trust
5.398% due 12/11/2049 (k)			11,001			9,590
Commercial Mortgage Loan Trust
6.095% due 12/10/2049 (k)			7,131			4,517
Commercial Mortgage Trust
4.000% due 07/10/2046			8,000			6,063
5.377% due 12/10/2046 (k)			10,400			10,377
5.758% due 07/10/2038 (k)			10,700			9,074
Countrywide Alternative Loan Resecuritization Trust
2.856% due 03/25/2047			5,257			5,018
7.000% due 01/25/2037			6,668			3,229
Countrywide Alternative Loan Trust
0.929% due 03/20/2047			1,068			744
0.936% due 05/25/2036 (k)			29,470			20,059
0.966% due 08/25/2047 ^			2,344			1,919
0.976% due 05/25/2047 (k)			21,710			10,795
0.986% due 03/25/2036 (k)			27,229			20,478
1.016% due 07/25/2036 (k)			12,012			8,983
1.039% due 11/20/2035			282			226
1.456% due 10/25/2035 ^(k)			1,613			1,218
1.877% due 07/20/2035 ^(k)			18,645			13,877
2.943% due 05/25/2036 (k)			10,741			8,524
5.500% due 11/25/2035			3,183			2,369
5.500% due 02/25/2036 ^			2,185			1,893
5.500% due 02/25/2036			2,457			2,165
5.500% due 05/25/2036 ^(k)			2,624			2,459
5.500% due 05/25/2036 (k)			8,092			7,584
5.500% due 05/25/2037			2,399			2,071
6.000% due 03/25/2035 ^(k)			606			492
6.000% due 04/25/2036 (k)			946			700
6.000% due 01/25/2037 ^			1,865			1,794
6.000% due 02/25/2037 (k)			6,771			5,931

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
6.000% due 02/25/2037 ^	$		2,494	$		1,735
6.000% due 04/25/2037 ^			8,294			5,909
6.000% due 08/25/2037 ^(k)			15,946			12,629
6.000% due 08/25/2037			4,452			3,526
6.250% due 12/25/2036 ^			922			684
17.721% due 07/25/2035			176			212
Countrywide Asset-Backed Certificates
0.996% due 04/25/2036			975			647
Countrywide Home Loan Mortgage Pass-Through Trust
2.626% due 03/25/2046 ^(k)			81,022			46,870
2.935% due 05/20/2036 ^			3,927			3,141
Credit Suisse Commercial Mortgage Trust
5.685% due 02/15/2039			3,410			3,178
Credit Suisse First Boston Mortgage Securities Corp.
4.952% due 07/15/2037 (k)			4,620			4,317
6.000% due 01/25/2036			443			338
Credit Suisse Mortgage Capital Certificates
2.448% due 12/29/2037			5,389			3,738
2.582% due 11/25/2037			10,890			6,187
2.758% due 05/27/2036			14,671			9,838
2.850% due 10/26/2036 (k)			22,284			17,083
3.024% due 09/26/2047			25,999			13,804
3.067% due 04/28/2037			7,125			5,306
3.244% due 05/26/2036			9,325			5,736
5.750% due 05/26/2037 (k)			32,140			29,191
Credit Suisse Mortgage Capital Mortgage-Backed Trust
6.000% due 07/25/2036			2,939			2,205
6.000% due 07/25/2036 (k)			530			405
6.500% due 05/25/2036 ^			4,095			2,982
DBUBS Mortgage Trust
4.652% due 11/10/2046			19,203			13,076
Debussy PLC
5.930% due 07/12/2025 (k)	GBP		55,000			67,070
8.250% due 07/12/2025			10,000			11,147
Deutsche ALT-A Securities, Inc.
1.056% due 04/25/2037	$		10,413			5,468
5.500% due 12/25/2035 ^(k)			1,035			871
Epic Drummond Ltd.
0.000% due 01/25/2022 (k)	EUR		39,096			40,717
Eurosail PLC
1.977% due 09/13/2045	GBP		15,406			15,052
2.627% due 09/13/2045			10,990			10,265
4.227% due 09/13/2045			9,132			8,386
First Horizon Alternative Mortgage Securities Trust
0.000% due 02/25/2020 (b)(e)	$		19			18
0.000% due 05/25/2020 (b)(e)			26			22
0.000% due 06/25/2020 ^(b)(e)			12			12
0.000% due 03/25/2035 (b)(e)			158			123
First Horizon Mortgage Pass-Through Trust
3.068% due 05/25/2037 ^(k)			9,953			8,201
Fondo de Titulizacion de Activos UCI
0.000% due 06/16/2049	EUR		3,996			3,474
GC Pastor Hipotecario FTA
0.000% due 06/21/2046			14,045			11,238
GE Commercial Mortgage Corp. Trust
5.606% due 12/10/2049 (k)	$		44,200			44,263
Greenwich Capital Commercial Funding Corp. Trust
6.361% due 06/10/2036			2,850			2,860
Grifonas Finance PLC
0.088% due 08/28/2039	EUR		7,026			5,602
GS Mortgage Securities Trust
5.647% due 04/10/2038	$		1,518			1,517
GSC Capital Corp. Mortgage Trust
0.936% due 05/25/2036 ^			4,314			3,349
HarborView Mortgage Loan Trust
2.448% due 06/19/2045 ^			1,452			879
HomeBanc Mortgage Trust
2.749% due 04/25/2037 ^			7,516			4,895
HSI Asset Loan Obligation Trust
6.000% due 06/25/2037 ^(k)			16,099			13,984
IM Pastor Fondo de Titluzacion Hipotecaria
0.000% due 03/22/2043 (k)	EUR		34,344			28,200
IM Pastor Fondo de Titulizacion de Activos
0.000% due 03/22/2044			1,233			1,066

66 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Impac Secured Assets Trust
0.926% due 01/25/2037 (k)	$		9,281	$		8,490
IndyMac Mortgage Loan Trust
0.936% due 02/25/2037			2,318			1,652
0.966% due 11/25/2036 (k)			348			309
3.031% due 11/25/2035 ^			6,399			5,334
3.334% due 06/25/2036			1,613			1,321
Infinity SoPRANo
0.018% due 11/05/2019 (k)	EUR		3,825			3,987
Jefferies Resecuritization Trust
6.000% due 12/26/2036	$		4,029			1,631
JPMorgan Alternative Loan Trust
1.103% due 06/27/2037 (k)			18,739			14,585
2.959% due 11/25/2036 ^			1,767			1,652
3.148% due 05/25/2036 ^			1,308			1,009
6.000% due 12/25/2035 ^			1,559			1,426
14.652% due 06/27/2037 (k)			15,763			12,054
JPMorgan Chase Commercial Mortgage Securities Trust
2.972% due 05/15/2045			4,227			1,974
4.000% due 08/15/2046			2,732			1,641
5.010% due 07/15/2042			3,195			3,097
5.502% due 01/12/2043 (k)			7,601			7,615
5.917% due 06/12/2041 (k)			10,975			10,860
6.152% due 02/12/2051 (k)			12,000			12,092
JPMorgan Resecuritization Trust
3.033% due 03/21/2037			6,659			5,665
6.000% due 09/26/2036			3,478			2,522
6.500% due 04/26/2036			7,347			4,490
Lavender Trust
6.250% due 10/26/2036			5,461			4,365
LB-UBS Commercial Mortgage Trust
5.752% due 02/15/2040			6,683			6,641
5.872% due 06/15/2038			3,079			2,912
Lehman Mortgage Trust
6.000% due 01/25/2038 ^			4,860			4,815
Lehman XS Trust
1.656% due 08/25/2047			774			526
Merrill Lynch Alternative Note Asset Trust
6.000% due 05/25/2037 ^			4,534			3,976
Merrill Lynch Mortgage Investors Trust
3.243% due 03/25/2036 ^(k)			14,593			9,986
Merrill Lynch Mortgage Trust
5.826% due 06/12/2050 (k)			44,986			43,693
Mesdag Delta BV
0.094% due 01/25/2020	EUR		15,918			14,714
Morgan Stanley Capital Trust
5.690% due 04/15/2049 (k)	$		67,828			66,515
5.862% due 07/12/2044 (k)			4,600			4,591
6.076% due 08/12/2041 (k)			7,225			7,198
Morgan Stanley Mortgage Loan Trust
0.926% due 05/25/2036			213			91
3.123% due 05/25/2036 ^			3,452			2,435
3.253% due 11/25/2037 (k)			3,354			2,831
5.962% due 06/25/2036			2,449			1,212
Morgan Stanley Re-REMIC Trust
1.058% due 02/26/2037			6,857			5,342
1.086% due 03/26/2037			4,310			2,981
Morgan Stanley Resecuritization Trust
3.145% due 06/26/2035			11,082			5,694
PHH Alternative Mortgage Trust
0.000% due 02/25/2037 ^(b)(e)			11			8
RBSSP Resecuritization Trust
3.392% due 09/26/2035			7,852			5,484
6.000% due 06/26/2037			1,785			1,560
8.884% due 06/26/2037			776			558
Residential Accredit Loans, Inc. Trust
0.906% due 02/25/2037 (k)			939			769
6.000% due 12/25/2035 ^(k)			3,960			3,694
6.000% due 11/25/2036 ^			4,784			3,827
6.250% due 02/25/2037 ^(k)			6,369			5,235
6.500% due 09/25/2037 ^			2,240			1,949
Residential Asset Mortgage Products Trust
8.000% due 05/25/2032 (k)			1,152			992
Residential Asset Securitization Trust
6.000% due 05/25/2036			1,410			1,309

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
6.000% due 02/25/2037 ^	$		294	$		231
6.000% due 03/25/2037 ^			3,781			2,544
6.250% due 10/25/2036 ^			181			163
RiverView HECM Trust
1.090% due 05/25/2047			21,430			17,104
Sequoia Mortgage Trust
1.603% due 02/20/2034			781			741
2.551% due 09/20/2032			752			718
5.364% due 06/20/2037 ^(k)			17,503			15,801
Structured Adjustable Rate Mortgage Loan Trust
3.226% due 04/25/2036 ^			1,121			1,038
Structured Asset Mortgage Investments Trust
0.966% due 05/25/2036			45			35
Structured Asset Securities Corp. Trust
5.500% due 10/25/2035 ^			2,680			1,849
Suntrust Adjustable Rate Mortgage Loan Trust
4.929% due 02/25/2037 ^			8,574			7,239
Theatre Hospitals PLC
3.401% due 10/15/2031 (k)	GBP		39,464			46,320
4.151% due 10/15/2031			1,864			2,194
Wachovia Bank Commercial Mortgage Trust
5.792% due 05/15/2043	$		5,000			4,988
WaMu Mortgage Pass-Through Certificates Trust
2.098% due 07/25/2046			422			392
2.731% due 08/25/2036 ^			3,460			3,244
Washington Mutual Mortgage Pass-Through Certificates Trust
0.996% due 01/25/2047 ^			3,002			2,437
1.783% due 06/25/2046			11,230			6,252
5.750% due 11/25/2035 ^			2,357			2,203
5.967% due 05/25/2036 ^(k)			10,018			7,471
Wells Fargo Mortgage Loan Trust
3.228% due 03/27/2037			8,150			6,688
Total Non-Agency Mortgage-Backed Securities (Cost $1,458,571)						1,426,578
ASSET-BACKED SECURITIES 78.5%
Aames Mortgage Investment Trust
1.574% due 07/25/2035 (k)			19,113			16,180
Accredited Mortgage Loan Trust
1.016% due 09/25/2036 (k)			2,200			1,988
1.356% due 07/25/2035			5,453			4,645
ACE Securities Corp. Home Equity Loan Trust
0.866% due 12/25/2036 (k)			27,268			11,374
1.056% due 02/25/2036			5,133			4,855
1.376% due 02/25/2036 ^			7,549			6,496
1.731% due 07/25/2035			2,900			2,543
1.851% due 07/25/2035 ^			17,938			8,818
2.256% due 11/25/2034			1,346			1,170
Aegis Asset-Backed Securities Trust
1.186% due 12/25/2035 (k)			22,800			16,914
1.236% due 06/25/2035 (k)			12,094			9,249
Airspeed Ltd.
0.974% due 06/15/2032			18,123			14,181
ALM Ltd.
6.380% due 04/16/2027			2,000			1,872
American Money Management Corp. CLO Ltd.
6.481% due 04/14/2027			6,100			5,470
7.931% due 12/09/2026			10,000			9,831
Ameriquest Mortgage Securities Trust
1.096% due 04/25/2036 (k)			30,500			28,116
Ameriquest Mortgage Securities, Inc. Asset-Backed Pass-Through Certificates
1.206% due 01/25/2036 (k)			22,225			18,759
1.366% due 09/25/2035 (k)			13,750			11,210
1.649% due 11/25/2034			5,526			4,885
1.806% due 04/25/2035 (k)			21,004			18,173
2.706% due 09/25/2032			1,148			962
4.662% due 05/25/2034 ^			2,745			2,394
Amortizing Residential Collateral Trust
1.881% due 08/25/2032			777			726
Argent Securities Trust
0.856% due 06/25/2036			2,215			799
0.876% due 04/25/2036			1,294			509

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
0.906% due 06/25/2036	$		4,646	$		1,690
0.906% due 09/25/2036			9,852			3,893
0.946% due 03/25/2036 (k)			14,182			7,515
Argent Securities, Inc. Asset-Backed Pass-Through Certificates
1.076% due 01/25/2036 (k)			19,114			16,274
1.136% due 02/25/2036 (k)			39,711			28,178
1.216% due 11/25/2035			5,851			3,088
2.031% due 11/25/2034			9,031			7,033
Asset-Backed Funding Certificates Trust
1.306% due 07/25/2035 (k)			7,400			6,114
1.806% due 03/25/2034			1,360			1,262
Asset-Backed Securities Corp. Home Equity Loan Trust
3.538% due 08/15/2033			819			780
Bear Stearns Asset-Backed Securities Trust
1.956% due 07/25/2035 (k)			39,756			32,605
2.256% due 10/27/2032			517			476
2.631% due 12/25/2034 (k)			18,650			14,432
3.260% due 10/25/2036			797			736
C-BASS CBO Corp.
1.196% due 09/06/2041			70,538			11,639
Carlyle Global Market Strategies CLO Ltd.
6.186% due 04/27/2027			1,750			1,621
Carrington Mortgage Loan Trust
0.836% due 10/25/2036			1,241			766
1.016% due 02/25/2037			8,300			6,487
1.176% due 02/25/2037			13,201			9,091
1.806% due 05/25/2035			4,400			3,477
Centex Home Equity Loan Trust
1.236% due 10/25/2035 (k)			9,213			8,452
CIFC Funding Ltd.
0.000% due 05/24/2026 (e)			3,390			2,328
Citigroup Mortgage Loan Trust, Inc.
0.896% due 01/25/2037 (k)			33,023			25,625
0.906% due 12/25/2036 (k)			25,951			13,890
0.916% due 09/25/2036 (k)			21,318			15,866
0.956% due 05/25/2037			1,015			759
0.976% due 12/25/2036			5,226			2,827
1.156% due 03/25/2037 (k)			40,086			33,368
1.166% due 10/25/2035			8,200			7,798
6.351% due 05/25/2036 ^(k)			3,394			2,106
Conseco Finance Securitizations Corp.
9.546% due 12/01/2033			6,480			7,106
Cork Street CLO Designated Activity Co.
0.000% due 11/27/2028 (e)	EUR		2,667			2,325
3.600% due 11/27/2028			1,197			1,264
4.500% due 11/27/2028			1,047			1,107
6.200% due 11/27/2028			1,296			1,333
Countrywide Asset-Backed Certificates
0.886% due 12/25/2036 ^(k)	$		37,433			37,018
0.896% due 06/25/2035 (k)			77,288			59,584
0.896% due 01/25/2037 (k)			27,175			22,288
0.896% due 06/25/2037 (k)			28,173			23,240
0.896% due 07/25/2037 ^(k)			14,234			11,832
0.896% due 06/25/2047 ^(k)			55,920			40,562
0.906% due 04/25/2047			2,398			2,220
0.906% due 06/25/2047 ^(k)			22,814			21,346
0.916% due 05/25/2036 (k)			13,003			10,307
0.956% due 06/25/2037 ^(k)			23,987			17,732
0.976% due 05/25/2037 (k)			25,000			18,522
0.976% due 08/25/2037 (k)			26,000			16,378
0.976% due 05/25/2047 (k)			17,951			13,111
0.976% due 06/25/2047 ^(k)			19,000			11,339
0.986% due 04/25/2047 (k)			35,000			21,319
0.996% due 03/25/2036 (k)			46,235			37,766
1.024% due 04/25/2036 (k)			10,000			8,901
1.046% due 10/25/2047 (k)			59,229			37,632
1.146% due 04/25/2036			8,762			4,100
1.206% due 03/25/2047 ^			2,489			1,416
1.306% due 05/25/2047			5,013			3,357
1.506% due 03/25/2034 (k)			803			779
1.956% due 06/25/2033			402			358
2.256% due 02/25/2035			4,300			3,934
4.902% due 10/25/2046 ^			891			835
5.253% due 10/25/2032 ^(k)			23,445			20,561
Countrywide Asset-Backed Certificates Trust
0.906% due 03/25/2047 (k)			15,355			14,419
1.044% due 05/25/2036 (k)			7,400			6,811

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 67

Consolidated Schedule of Investments PIMCO Dynamic Credit and Mortgage Income Fund (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
1.104% due 05/25/2036 (k)	$		32,154	$		19,153
1.224% due 10/25/2035 (k)			7,200			6,868
1.679% due 07/25/2035 (k)			6,900			6,405
1.934% due 04/25/2035 (k)			14,153			13,076
2.481% due 11/25/2034 (k)			13,611			11,632
Credit-Based Asset Servicing and Securitization LLC
1.214% due 07/25/2035			3,000			2,191
Dekania Europe CDO PLC
0.203% due 09/27/2037	EUR		6,200			5,539
Encore Credit Receivables Trust
1.446% due 07/25/2035	$		421			359
FAB U.S. Ltd.
0.000% due 12/06/2045 (e)	GBP		9,932			5,835
Fieldstone Mortgage Investment Trust
0.754% due 07/25/2036	$		7,323			4,136
First Franklin Mortgage Loan Trust
0.996% due 04/25/2036 (k)			6,825			4,566
1.136% due 02/25/2036			5,500			3,208
1.206% due 11/25/2036			2,066			1,925
1.386% due 09/25/2035			6,688			3,575
1.731% due 05/25/2036			16,387			7,269
Fremont Home Loan Trust
0.906% due 01/25/2037			4,149			2,211
0.996% due 02/25/2037			1,710			972
1.246% due 07/25/2035			2,800			2,549
Glacier Funding CDO Ltd.
1.146% due 08/04/2035			26,928			7,500
Gramercy Real Estate CDO Ltd.
1.442% due 07/25/2041			1,150			1,091
GSAA Trust
5.058% due 05/25/2035			5,158			5,044
GSAMP Trust
0.816% due 01/25/2037			4,381			2,660
0.846% due 01/25/2037			1,307			796
0.916% due 05/25/2046			1,017			952
0.956% due 11/25/2036			5,287			3,114
1.006% due 12/25/2036			5,611			3,154
1.026% due 04/25/2036 (k)			26,000			15,746
2.406% due 10/25/2034			731			691
3.306% due 10/25/2033			704			674
Halcyon Loan Advisors European Funding BV
0.000% due 01/15/2027 (e)	EUR		1,400			1,429
Hillcrest CDO Ltd.
1.293% due 12/10/2039	$		58,776			29,799
Home Equity Asset Trust
1.851% due 05/25/2035			3,800			3,437
1.956% due 07/25/2035			4,000			3,297
Home Equity Loan Trust
1.096% due 04/25/2037 (k)			8,000			4,796
House of Europe Funding PLC
0.025% due 11/08/2090	EUR		5,600			5,085
HSI Asset Securitization Corp. Trust
0.866% due 12/25/2036 (k)	$		27,931			11,730
0.916% due 10/25/2036			10,726			5,978
0.926% due 12/25/2036 (k)			17,108			7,201
0.946% due 01/25/2037 (k)			49,500			35,862
1.146% due 11/25/2035			5,830			4,331
IndyMac Home Equity Mortgage Loan Asset-Backed Trust
0.916% due 11/25/2036			7,241			5,406
0.996% due 04/25/2037 (k)			4,560			2,878
1.196% due 03/25/2036 (k)			1,504			1,030
IXIS Real Estate Capital Trust
1.731% due 09/25/2035 ^			5,457			3,639
JPMorgan Mortgage Acquisition Corp.
1.146% due 05/25/2035 (k)			5,000			4,369
JPMorgan Mortgage Acquisition Trust
0.834% due 07/25/2036 (k)			18,262			15,952
0.896% due 03/25/2047 (k)			8,586			8,115
0.906% due 07/25/2036			2,386			1,182
0.916% due 07/25/2036 ^			1,515			624
0.996% due 08/25/2036			2,947			2,474
5.462% due 10/25/2036 ^			4,876			3,743
5.888% due 10/25/2036 ^(k)			16,252			12,472
Lehman XS Trust
5.056% due 05/25/2037 ^(k)			16,332			12,608

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Long Beach Mortgage Loan Trust
0.946% due 02/25/2036 (k)	$		31,182	$		20,793
1.401% due 11/25/2035 (k)			28,200			24,568
1.406% due 09/25/2034			1,216			931
1.461% due 11/25/2035 (k)			31,740			18,439
1.731% due 04/25/2035 (k)			38,750			34,590
Magnetite Ltd.
5.830% due 04/15/2026			4,900			4,544
MASTR Asset-Backed Securities Trust
0.926% due 06/25/2036			10,819			8,948
0.926% due 10/25/2036 (k)			3,890			3,646
0.936% due 02/25/2036			9,821			5,308
0.996% due 06/25/2036			4,242			2,267
1.046% due 12/25/2035 (k)			7,543			6,808
1.116% due 12/25/2035			11,886			4,849
Morgan Stanley ABS Capital, Inc. Trust
0.816% due 09/25/2036			4,347			2,120
0.826% due 10/25/2036			5			3
0.896% due 10/25/2036			11,177			6,366
0.906% due 06/25/2036			12,145			8,646
0.906% due 09/25/2036			8,734			4,350
0.906% due 11/25/2036 (k)			22,177			13,393
0.976% due 10/25/2036			5,386			3,101
1.026% due 03/25/2036 (k)			29,457			26,102
1.401% due 09/25/2035			6,500			6,023
1.431% due 09/25/2035 (k)			18,121			14,419
1.756% due 07/25/2037 (k)			32,670			30,518
1.791% due 01/25/2035			5,533			2,496
2.706% due 05/25/2034			2,603			2,451
Morgan Stanley Capital, Inc. Trust
1.046% due 01/25/2036 (k)			21,769			20,491
National Collegiate Commutation Trust
0.000% due 03/25/2038			87,000			38,646
New Century Home Equity Loan Trust
3.756% due 01/25/2033 ^(k)			675			589
Nomura Home Equity Loan, Inc. Home Equity Loan Trust
1.086% due 10/25/2036 ^			5,500			1,889
1.176% due 02/25/2036 (k)			30,900			18,989
Option One Mortgage Loan Trust
0.886% due 07/25/2037 (k)			19,815			12,686
0.896% due 01/25/2037 (k)			13,057			7,613
0.976% due 01/25/2037			2,663			1,568
1.006% due 03/25/2037			795			421
1.086% due 04/25/2037			3,176			2,031
Option One Mortgage Loan Trust Asset-Backed Certificates
1.216% due 11/25/2035 (k)			13,200			10,753
Park Place Securities, Inc.
1.386% due 09/25/2035 (k)			9,600			6,425
Park Place Securities, Inc. Asset-Backed Pass-Through Certificates
1.246% due 08/25/2035			8,350			7,283
1.246% due 09/25/2035 (k)			10,713			9,262
1.306% due 07/25/2035 (k)			30,950			25,351
1.791% due 03/25/2035 ^			7,500			5,867
1.881% due 10/25/2034 (k)			10,000			8,639
2.001% due 01/25/2036 (k)			4,427			4,108
2.076% due 01/25/2036 ^(k)			11,978			9,248
2.481% due 02/25/2035 (k)			29,447			22,127
2.781% due 12/25/2034 (k)			25,974			16,630
Popular ABS Mortgage Pass-Through Trust
1.146% due 02/25/2036			7,000			6,115
1.446% due 06/25/2035 (k)			626			518
1.906% due 06/25/2035			1,349			1,036
Putnam Structured Product Funding Ltd.
9.092% due 02/25/2037			1,937			1,966
Renaissance Home Equity Loan Trust
5.612% due 04/25/2037			3,238			1,545
Residential Asset Mortgage Products Trust
1.076% due 01/25/2036 (k)			14,303			12,021
1.136% due 01/25/2036			4,360			3,503
1.334% due 04/25/2034			4,871			4,497
1.454% due 04/25/2034			5,631			5,025
1.476% due 02/25/2035			250			230
2.159% due 04/25/2034 ^			1,465			1,051
2.564% due 04/25/2034 ^			2,007			1,445

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Residential Asset Securities Corp. Trust
0.886% due 11/25/2036 (k)	$		13,998	$		11,629
0.926% due 10/25/2036 (k)			16,125			11,415
0.986% due 06/25/2036 (k)			41,332			32,371
0.996% due 09/25/2036 (k)			16,782			15,490
1.016% due 07/25/2036 (k)			17,800			14,811
1.036% due 04/25/2036			5,270			4,757
1.086% due 12/25/2035 (k)			20,321			15,059
1.086% due 04/25/2036			10,000			4,055
1.086% due 04/25/2036 (k)			17,500			15,270
1.096% due 05/25/2037			9,275			7,059
1.166% due 01/25/2036 (k)			3,200			2,954
1.881% due 02/25/2035 (k)			1,900			1,627
Saxon Asset Securities Trust
2.506% due 12/25/2037 (k)			53,264			50,785
Securitized Asset-Backed Receivables LLC Trust
0.896% due 07/25/2036 (k)			28,272			21,921
0.916% due 07/25/2036			3,206			1,597
1.006% due 05/25/2036 (k)			20,784			12,665
1.026% due 03/25/2036 (k)			10,002			7,929
1.156% due 11/25/2035			11,532			6,050
1.206% due 10/25/2035 (k)			13,000			10,970
1.416% due 08/25/2035			5,685			3,733
SLM Student Loan Trust
0.000% due 10/28/2029 (e)			25			22,566
0.000% due 01/25/2042 (e)			20			19,929
SoFi Professional Loan Program LLC
0.000% due 01/25/2039 (e)			21,280			12,408
Soloso CDO Ltd.
1.188% due 10/07/2037			11,318			4,640
Sound Point CLO Ltd.
5.732% due 01/23/2027			1,000			915
Soundview Home Loan Trust
0.906% due 06/25/2037 (k)			4,051			2,752
0.916% due 11/25/2036 (k)			12,126			11,257
0.936% due 02/25/2037			8,837			3,467
1.016% due 02/25/2037			10,256			4,087
1.036% due 05/25/2036 (k)			14,665			12,889
1.106% due 03/25/2036			7,933			6,693
1.706% due 10/25/2037			8,839			6,447
1.856% due 09/25/2037			2,642			1,908
Specialty Underwriting & Residential Finance Trust
1.106% due 03/25/2037			717			386
1.731% due 12/25/2035			5,225			4,752
2.556% due 05/25/2035			2,416			2,240
3.895% due 02/25/2037 ^			3,749			2,025
Taberna Preferred Funding Ltd.
1.158% due 08/05/2036 ^			20,918			15,061
1.158% due 08/05/2036			5,200			3,744
1.221% due 05/05/2038			17,073			14,171
1.231% due 02/05/2037			43,650			38,848
Trapeza CDO LLC
1.853% due 01/20/2034 (k)			27,935			25,141
Wachovia Mortgage Loan Trust
1.446% due 10/25/2035			8,000			5,935
Wells Fargo Home Equity Asset-Backed Securities Trust
1.086% due 05/25/2036			5,000			4,206
Total Asset-Backed Securities (Cost $2,239,006)						2,287,286
SOVEREIGN ISSUES 0.2%
Republic of Greece Government International Bond
3.800% due 08/08/2017	JPY		347,000			2,910
4.500% due 07/03/2017			310,000			2,629
4.750% due 04/17/2019	EUR		1,900			1,893
Total Sovereign Issues (Cost $8,124)						7,432
		SHARES
COMMON STOCKS 0.1%
ENERGY 0.0%
OGX Petroleo e Gas S.A. SP - ADR			858,034			0

68 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

		SHARES			MARKET VALUE (000S)
FINANCIALS 0.1%
TIG FinCo PLC (i)			2,651,536	$		2,418
Total Common Stocks (Cost $3,931)						2,418
SHORT-TERM INSTRUMENTS 10.1%
REPURCHASE AGREEMENTS (j) 6.1%
						178,302
		PRINCIPAL AMOUNT (000S)
SHORT-TERM NOTES 1.9%
Federal Home Loan Bank
0.497% due 01/05/2017 (e)(f)	$		54,400			54,399
0.507% due 01/06/2017 (e)(f)			2,200			2,200
						56,599

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
U.S. TREASURY BILLS 2.1%
0.462% due 01/19/2017 - 03/16/2017 (d)(e)(k)(m)(o)	$		60,167	$		60,124
Total Short-Term Instruments (Cost $294,481)						295,025
Total Investments in Securities (Cost $5,356,269)						5,210,941
Total Investments 178.7% (Cost $5,356,269)				$		5,210,941
Financial Derivative Instruments (l)(n) (0.1)% (Cost or Premiums, net $(5,848))						(2,851	)
Other Assets and Liabilities, net (78.6)%						(2,292,806	)
Net Assets 100.0%				$		2,915,284

NOTES TO CONSOLIDATED SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*):

* A zero balance may reflect actual amounts rounding to less than one thousand.

^ Security is in default.

(a) Interest only security.

(b) Principal only security.

(c) Payment in-kind security.

(d) Coupon represents a weighted average yield to maturity.

(e) Zero coupon security.

(f) Coupon represents a yield to maturity.

(g) Perpetual maturity; date shown, if applicable, represents next contractual call date.

(h) Security is subject to a forbearance agreement entered into by the Fund which forbears the Fund from taking action to, among other things, accelerate and collect payments on the subject note with respect to specified events of default.

(i)  RESTRICTED SECURITIES:

Issuer Description	Acquisition Date		Cost		Market Value		Market Value as Percentage of Net Assets
KGH Intermediate Holdco LLC 12.000% due 08/08/2019		08/07/2014	$	38,503	$	38,569		1.32	%
Odebrecht Offshore Drilling Finance Ltd. 6.625% due 10/01/2023		04/02/2015		626		229		0.01
Odebrecht Offshore Drilling Finance Ltd. 6.750% due 10/01/2023		04/01/2015 - 04/08/2015		19,287		6,533		0.22
Pinnacol Assurance 8.625% due 06/25/2034		06/23/2014		23,200		23,191		0.80
TIG FinCo PLC		04/02/2015		3,931		2,418		0.08
			$	85,547	$	70,940		2.43	%

BORROWINGS AND OTHER FINANCING TRANSACTIONS

(j)  REPURCHASE AGREEMENTS:

Counterparty	Lending Rate			Settlement Date		Maturity Date		Principal Amount			Collateralized By	Collateral (Received)			Repurchase Agreements, at Value		Repurchase Agreement Proceeds to be Received(1)
BOS		0.400	%		12/30/2016		01/03/2017		$	8,900	U.S. Treasury Bonds 2.875% due 05/15/2043	$	(9,298	)	$	8,900	$	8,900
RDR		0.570			12/30/2016		01/03/2017			65,700	U.S. Treasury Notes 2.000% due 08/15/2025		(67,215	)		65,700		65,704
SSB		0.010			12/30/2016		01/03/2017			30,243	U.S. Treasury Notes 0.750% due 12/31/2017(2)		(30,851	)		30,243		30,243
UBS		0.400			11/02/2016		01/13/2017		GBP	36,075	Barclays PLC 7.875% due 09/15/2022		(44,128	)		44,459		44,490
											Lloyds Banking Group PLC 7.625% - 7.875% due 06/27/2023 - 06/27/2029
		0.400			11/02/2016		01/17/2017			23,532	Barclays PLC 7.875% due 09/15/2022		(29,320	)		29,000		29,020
Total Repurchase Agreements												$	(180,812	)	$	178,302	$	178,357

⁽¹⁾  Includes accrued interest.

⁽²⁾  Collateral is held in custody by the counterparty.

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 69

Consolidated Schedule of Investments PIMCO Dynamic Credit and Mortgage Income Fund (Cont.)

REVERSE REPURCHASE AGREEMENTS:

Counterparty	Borrowing Rate(3)			Borrowing Date		Maturity Date			Amount Borrowed(3)				Payable for Reverse Repurchase Agreements
BCY		1.150	%		12/16/2016		TBD	(4)		$	(49,702	)	$	(49,731	)
		1.850			11/30/2016		03/02/2017				(997	)		(999	)
		1.900			11/16/2016		02/16/2017				(5,789	)		(5,804	)
		1.900			11/30/2016		03/02/2017				(3,933	)		(3,940	)
		2.354			10/03/2016		01/03/2017				(6,661	)		(6,701	)
		2.364			10/05/2016		01/05/2017				(12,040	)		(12,111	)
		2.380			10/17/2016		01/17/2017				(20,217	)		(20,321	)
		2.381			10/21/2016		01/18/2017				(44,767	)		(44,986	)
		2.382			11/14/2016		02/09/2017				(19,898	)		(19,964	)
		2.390			10/27/2016		01/27/2017				(15,452	)		(15,522	)
		2.431			11/30/2016		03/02/2017				(15,907	)		(15,943	)
		2.494			12/21/2016		03/21/2017				(9,012	)		(9,020	)
		2.497			01/03/2017		04/03/2017				(6,793	)		(6,793	)
		2.845			09/26/2016		03/24/2017				(2,665	)		(2,686	)
		2.846			09/22/2016		09/22/2017				(4,391	)		(4,425	)
BPG		2.647			01/11/2016		01/11/2017				(30,316	)		(31,114	)
		2.666			02/17/2016		02/17/2017				(9,712	)		(9,943	)
		2.731			03/16/2016		03/16/2017				(36,818	)		(37,636	)
		2.745			03/17/2016		03/16/2017				(9,049	)		(9,250	)
BPS		1.620			10/06/2016		01/06/2017				(1,855	)		(1,862	)
		1.670			10/24/2016		01/24/2017				(11,632	)		(11,670	)
		1.670			11/15/2016		02/15/2017				(8,321	)		(8,340	)
		1.670			12/23/2016		01/26/2017				(3,273	)		(3,275	)
		1.680			10/06/2016		01/19/2017				(3,643	)		(3,658	)
		1.680			10/07/2016		01/19/2017				(9,540	)		(9,579	)
		1.690			07/26/2016		01/26/2017				(3,552	)		(3,579	)
		1.700			11/08/2016		01/31/2017				(1,034	)		(1,037	)
		1.740			12/01/2016		03/02/2017				(984	)		(986	)
		2.731			08/15/2016		03/16/2017				(4,382	)		(4,429	)
		2.743			11/10/2016		05/10/2017				(3,248	)		(3,261	)
		2.840			11/30/2016		05/30/2017				(16,435	)		(16,479	)
		2.841			12/02/2016		06/02/2017				(3,814	)		(3,824	)
		2.843			12/12/2016		06/09/2017				(11,559	)		(11,579	)
		2.969			08/19/2016		08/18/2017				(32,458	)		(32,825	)
		2.976			08/16/2016		08/16/2017				(38,955	)		(39,406	)
BRC		1.550			11/03/2016		02/03/2017				(18,373	)		(18,421	)
		1.850			11/16/2016		02/16/2017				(1,828	)		(1,832	)
		1.850			12/01/2016		03/02/2017				(3,429	)		(3,435	)
		2.718			10/11/2016		10/11/2017				(20,946	)		(21,079	)
		2.734			11/02/2016		11/02/2017				(26,834	)		(26,960	)
		2.918			10/11/2016		04/11/2018				(36,757	)		(37,007	)
DBL		0.900			10/05/2016		01/16/2017			EUR	(5,941	)		(6,268	)
DEU		1.900			11/22/2016		02/22/2017			$	(7,733	)		(7,750	)
		1.900			12/19/2016		01/06/2017				(2,590	)		(2,592	)
		1.950			12/16/2016		03/16/2017				(17,466	)		(17,483	)
GLM		0.750			10/11/2016		01/11/2017			EUR	(16,581	)		(17,486	)
		2.372			10/11/2016		01/11/2017			$	(7,486	)		(7,527	)
GSC		2.154			12/15/2016		01/13/2017				(45,062	)		(45,113	)
		2.236			12/16/2016		01/17/2017				(29,302	)		(29,335	)
		2.354			12/15/2016		01/13/2017				(16,943	)		(16,964	)
JML		1.650			12/05/2016		01/10/2017				(39,151	)		(39,203	)
JPS		2.231			10/13/2016		01/13/2017				(16,246	)		(16,329	)
MSB		2.631			10/21/2016		10/23/2017				(29,543	)		(29,703	)
		2.632			04/22/2016		04/21/2017				(29,502	)		(29,647	)
		2.636			04/27/2016		04/27/2017				(21,887	)		(21,990	)
		2.637			04/29/2016		05/01/2017				(5,339	)		(5,363	)
		2.681			12/01/2016		12/01/2017				(8,461	)		(8,482	)
		2.684			06/02/2016		04/21/2017				(2,988	)		(2,994	)
		2.696			06/06/2016		06/06/2017				(7,146	)		(7,160	)
		2.748			10/03/2016		10/03/2017				(2,632	)		(2,649	)
MSC		2.631			08/05/2016		02/06/2017				(18,106	)		(18,181	)
		2.970			09/16/2016		09/15/2017				(27,499	)		(27,538	)
		3.026			07/11/2016		01/11/2017				(19,573	)		(19,702	)
MYI		1.250			11/09/2016		02/09/2017			GBP	(2,891	)		(3,569	)
		1.530			10/05/2016		02/06/2017			EUR	(5,449	)		(5,758	)
NOM		2.480			10/14/2016		04/13/2017			$	(13,815	)		(13,892	)
		2.481			08/03/2016		02/03/2017				(27,256	)		(27,365	)
		2.666			08/22/2016		02/22/2017				(28,336	)		(28,606	)
PAR		0.350			12/20/2016		03/20/2017			EUR	(3,471	)		(3,654	)

70 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

Counterparty	Borrowing Rate(3)			Borrowing Date		Maturity Date			Amount Borrowed(3)				Payable for Reverse Repurchase Agreements
		0.400	%		09/29/2016		TBD	(4)		EUR	(3,464	)	$	(3,651	)
		0.850			11/17/2016		01/27/2017			GBP	(4,108	)		(5,068	)
		0.850			11/24/2016		01/27/2017				(4,995	)		(6,162	)
		0.950			10/28/2016		01/30/2017				(1,721	)		(2,125	)
RBC		1.720			08/01/2016		02/01/2017			$	(19,566	)		(19,711	)
		1.777			11/28/2016		02/06/2017				(3,056	)		(3,061	)
		1.850			08/11/2016		02/13/2017				(10,341	)		(10,418	)
		1.900			10/04/2016		04/04/2017				(2,856	)		(2,870	)
		1.910			10/31/2016		05/01/2017				(11,540	)		(11,579	)
		2.336			04/25/2016		04/24/2017				(29,781	)		(30,270	)
		2.397			11/04/2016		05/04/2017				(12,552	)		(12,602	)
		2.408			10/31/2016		05/01/2017				(7,765	)		(7,798	)
		2.495			08/18/2016		02/21/2017				(14,260	)		(14,396	)
		2.543			11/14/2016		05/15/2017				(25,462	)		(25,552	)
		2.547			11/04/2016		05/04/2017				(11,708	)		(11,758	)
		2.550			09/13/2016		03/13/2017				(37,763	)		(38,063	)
		2.550			09/26/2016		03/27/2017				(19,973	)		(20,113	)
		2.559			10/28/2016		05/01/2017				(14,977	)		(15,048	)
		2.560			09/20/2016		03/20/2017				(55,267	)		(55,680	)
		2.560			09/22/2016		03/22/2017				(17,834	)		(17,965	)
RCE		0.788			10/26/2016		01/27/2017			EUR	(5,478	)		(5,776	)
		0.950			10/31/2016		01/31/2017			GBP	(4,317	)		(5,329	)
		1.000			10/05/2016		02/06/2017			EUR	(5,108	)		(5,391	)
		1.050			11/30/2016		02/28/2017			GBP	(7,220	)		(8,907	)
		1.346			10/18/2016		01/18/2017				(1,854	)		(2,291	)
		1.377			12/14/2016		03/14/2017				(3,168	)		(3,907	)
RDR		1.650			10/14/2016		01/13/2017			$	(861	)		(864	)
		1.650			11/30/2016		03/02/2017				(2,866	)		(2,870	)
RTA		1.524			07/01/2016		01/03/2017				(9,422	)		(9,496	)
		1.711			08/03/2016		02/03/2017				(9,110	)		(9,176	)
		1.860			08/22/2016		02/22/2017				(11,788	)		(11,870	)
		1.897			11/07/2016		05/01/2017				(1,954	)		(1,960	)
		1.967			01/03/2017		07/03/2017				(10,382	)		(10,382	)
		2.065			02/02/2016		02/01/2017				(11,027	)		(11,240	)
		2.103			01/04/2016		01/03/2017				(13,468	)		(13,755	)
		2.208			04/13/2016		04/12/2017				(9,263	)		(9,414	)
		2.211			03/15/2016		03/14/2017				(76,130	)		(77,505	)
		2.212			03/08/2016		02/21/2017				(7,694	)		(7,836	)
		2.239			04/25/2016		04/24/2017				(26,142	)		(26,553	)
		2.245			03/17/2016		03/16/2017				(11,950	)		(12,168	)
		2.253			06/16/2016		06/15/2017				(31,616	)		(32,014	)
		2.274			06/15/2016		06/09/2017				(4,773	)		(4,834	)
		2.298			07/19/2016		07/18/2017				(2,020	)		(2,042	)
		2.337			05/31/2016		05/30/2017				(7,767	)		(7,876	)
		2.337			06/03/2016		06/02/2017				(9,597	)		(9,730	)
		2.345			11/14/2016		07/25/2017				(5,190	)		(5,207	)
		2.417			01/03/2017		07/03/2017				(14,139	)		(14,139	)
		2.443			08/05/2016		08/04/2017				(12,699	)		(12,829	)
		2.519			08/15/2016		08/14/2017				(28,343	)		(28,623	)
		2.570			10/21/2016		10/20/2017				(18,547	)		(18,645	)
		2.571			10/25/2016		10/24/2017				(7,583	)		(7,621	)
		2.605			11/18/2016		11/16/2017				(12,170	)		(12,210	)
		2.610			11/17/2016		11/16/2017				(7,889	)		(7,916	)
RYL		0.629			12/19/2016		01/19/2017			EUR	(3,679	)		(3,874	)
SOG		0.732			10/05/2016		02/06/2017				(4,906	)		(5,174	)
		1.550			10/18/2016		01/18/2017			$	(2,636	)		(2,645	)
		1.600			10/20/2016		01/20/2017				(9,453	)		(9,484	)
		1.600			10/31/2016		01/31/2017				(18,389	)		(18,441	)
		1.650			08/26/2016		02/27/2017				(7,417	)		(7,461	)
		1.650			10/14/2016		02/27/2017				(3,186	)		(3,198	)
		1.650			11/09/2016		02/09/2017				(4,691	)		(4,703	)
		1.650			11/15/2016		02/15/2017				(4,764	)		(4,775	)
		1.650			11/21/2016		02/21/2017				(18,974	)		(19,011	)
		1.650			11/28/2016		02/27/2017				(19,415	)		(19,458	)
		1.700			12/14/2016		03/14/2017				(7,772	)		(7,779	)
		2.522			10/07/2016		04/07/2017				(8,232	)		(8,283	)
		2.526			10/11/2016		04/11/2017				(10,449	)		(10,511	)
		2.534			07/26/2016		01/26/2017				(20,535	)		(20,753	)
		2.540			07/28/2016		01/30/2017				(23,611	)		(23,861	)
		2.598			12/06/2016		06/06/2017				(17,146	)		(17,181	)
		2.601			12/07/2016		06/06/2017				(24,156	)		(24,203	)

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 71

Consolidated Schedule of Investments PIMCO Dynamic Credit and Mortgage Income Fund (Cont.)

Counterparty	Borrowing Rate(3)			Borrowing Date		Maturity Date		Amount Borrowed(3)				Payable for Reverse Repurchase Agreements
		2.607	%		12/09/2016		06/09/2017		$	(43,012	)	$	(43,090	)
		2.613			12/14/2016		06/14/2017			(41,643	)		(41,703	)
UBS		0.520			09/26/2016		01/26/2017		EUR	(14,796	)		(15,598	)
		0.900			10/13/2016		01/13/2017		GBP	(30,071	)		(37,135	)
		0.900			10/17/2016		01/17/2017			(19,680	)		(24,301	)
		0.900			10/21/2016		01/23/2017			(13,880	)		(17,137	)
		1.100			10/25/2016		01/25/2017			(1,726	)		(2,131	)
		1.300			11/18/2016		02/17/2017			(40,673	)		(50,208	)
		1.310			10/14/2016		01/20/2017			(30,606	)		(37,829	)
		1.640			11/08/2016		02/08/2017		$	(14,322	)		(14,359	)
		1.650			10/28/2016		01/30/2017			(6,636	)		(6,656	)
		1.680			10/19/2016		01/19/2017			(8,105	)		(8,134	)
		1.684			10/25/2016		01/25/2017			(2,768	)		(2,777	)
		1.730			11/14/2016		02/14/2017			(12,031	)		(12,060	)
		1.730			11/25/2016		02/14/2017			(1,158	)		(1,160	)
		1.830			11/14/2016		02/14/2017			(8,246	)		(8,267	)
		1.850			12/28/2016		03/14/2017			(15,291	)		(15,296	)
		1.880			11/30/2016		03/02/2017			(9,950	)		(9,968	)
		2.376			10/11/2016		01/11/2017			(9,059	)		(9,109	)
		2.380			10/14/2016		01/18/2017			(6,192	)		(6,225	)
		2.387			11/09/2016		02/09/2017			(6,985	)		(7,010	)
		2.424			07/05/2016		01/05/2017			(20,285	)		(20,534	)
		2.426			10/11/2016		01/11/2017			(21,172	)		(21,292	)
		2.474			07/05/2016		01/05/2017			(16,308	)		(16,512	)
Total Reverse Repurchase Agreements												$	(2,387,267	)

⁽³⁾  The average amount of borrowings outstanding during the period ended December 31, 2016 was $(2,310,064) at a weighted average interest rate of 1.986%.

⁽⁴⁾  Open maturity reverse repurchase agreement.

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of December 31, 2016:

(k) Securities with an aggregate market value of $3,171,231 and cash of $601 have been pledged as collateral under the terms of the following master agreements as of December 31, 2016.

Counterparty	Repurchase Agreement Proceeds to be Received		Payable for Reverse Repurchase Agreements			Payable for Sale-Buyback Transactions		Total Borrowings and Other Financing Transactions			Collateral Pledged/(Received)			Net  Exposure(5)
Global/Master Repurchase Agreement
BCY	$	0	$	(218,946	)	$	0	$	(218,946	)	$	297,251		$	78,305
BOS		8,900		0			0		8,900			(9,298	)		(398	)
BPG		0		(87,943	)		0		(87,943	)		134,899			46,956
BPS		0		(155,789	)		0		(155,789	)		213,078			57,289
BRC		0		(108,734	)		0		(108,734	)		165,607			56,873
DBL		0		(6,268	)		0		(6,268	)		7,672			1,404
DEU		0		(27,825	)		0		(27,825	)		34,680			6,855
GLM		0		(25,013	)		0		(25,013	)		31,761			6,748
GSC		0		(91,412	)		0		(91,412	)		123,506			32,094
JML		0		(39,203	)		0		(39,203	)		48,714			9,511
JPS		0		(16,329	)		0		(16,329	)		24,971			8,642
MSB		0		(107,988	)		0		(107,988	)		146,340			38,352
MSC		0		(65,421	)		0		(65,421	)		94,850			29,429
MYI		0		(9,327	)		0		(9,327	)		10,819			1,492
NOM		0		(69,863	)		0		(69,863	)		95,385			25,522
PAR		0		(20,660	)		0		(20,660	)		24,142			3,482
RBC		0		(296,884	)		0		(296,884	)		366,871			69,987
RCE		0		(31,601	)		0		(31,601	)		38,107			6,506
RDR		65,704		(3,734	)		0		61,970			(62,493	)		(523	)
RTA		0		(365,041	)		0		(365,041	)		487,748			122,707
RYL		0		(3,874	)		0		(3,874	)		4,043			169
SOG		0		(291,714	)		0		(291,714	)		375,239			83,525
SSB		30,243		0			0		30,243			(30,851	)		(608	)
UBS		73,510		(343,698	)		0		(270,188	)		379,514			109,326
Total Borrowings and Other Financing Transactions	$	178,357	$	(2,387,267	)	$	0

⁽⁵⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. The Fund and Subsidiary are recognized as two separate legal entities. As such, exposure cannot be netted. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements.

72 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS

Remaining Contractual Maturity of the Agreements

	Overnight and Continuous		Up to 30 days			31-90 days			Greater Than 90 days			Total
Reverse Repurchase Agreements
Corporate Bonds & Notes	$	0	$	(211,255	)	$	(295,565	)	$	(69,791	)	$	(576,611	)
U.S. Government Agencies		0		(4,443	)		(2,870	)		0			(7,313	)
Non-Agency Mortgage-Backed Securities		0		(142,042	)		(334,528	)		(268,316	)		(744,886	)
Asset-Backed Securities		0		(338,681	)		(177,002	)		(511,460	)		(1,027,143	)
Total Borrowings	$	0	$	(696,421	)	$	(809,965	)	$	(849,567	)	$	(2,355,953	)
Gross amount of recognized liabilities for reverse repurchase agreements(6)												$	(2,355,953	)

⁽⁶⁾ Unsettled reverse repurchase agreements liability of $(31,314) is outstanding at period end.

(l)  FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION⁽¹⁾

Reference Entity	Fixed Receive Rate			Maturity Date		Implied Credit Spread at December 31, 2016(2)			Notional Amount(3)		Market Value(4)		Unrealized Appreciation		Variation Margin
															Asset		Liability
Navient Corp.		5.000	%		09/20/2020		2.713	%	$	200		$      16	$	8	$	0	$	0
Navient Corp.		5.000			12/20/2021		3.595			400		26		24		0		0
Sprint Communications, Inc.		5.000			12/20/2021		3.462			13,300		917		668		31		0
												$    959	$	700	$	31	$	0

CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION⁽¹⁾

Index/Tranches	Fixed Receive Rate			Maturity Date		Notional Amount(3)		Market Value(4)		Unrealized Appreciation		Variation Margin
												Asset		Liability
CDX.HY-27 5-Year Index		5.000	%		12/20/2021	$	500	$	32	$	4	$	1	$	0

⁽¹⁾ If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽³⁾ The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁴⁾ The prices and resulting values for credit default swap agreements on credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

INTEREST RATE SWAPS

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Maturity Date		Notional Amount		Market Value			Unrealized Appreciation/ (Depreciation)			Variation Margin
															Asset		Liability
Pay	3-Month CAD-Bank Bill		3.300	%		06/19/2024		CAD    102,200	$	8,851		$	4,105		$	244	$	0
Receive	3-Month CAD-Bank Bill		3.500			06/20/2044		46,900		(8,751	)		(7,080	)		0		(406	)
Pay	3-Month USD-LIBOR		1.750			12/21/2023		$    509,000		(14,235	)		(23,826	)		1,026		0
Receive	3-Month USD-LIBOR		1.750			12/21/2026		801,000		(44,700	)		(64,087	)		2,735		0
Receive	3-Month USD-LIBOR		2.500			06/15/2036		193,000		2,753			21,999			0		(1,162	)
Receive	3-Month USD-LIBOR		2.500			06/15/2046		406,700		6,929			56,835			0		(3,618	)
Pay	6-Month AUD-BBR-BBSW		3.631			03/06/2019		AUD    150,000		3,775			3,775			115		0
Pay	6-Month AUD-BBR-BBSW		3.635			03/06/2019		175,000		4,416			4,415			134		0
Pay	6-Month AUD-BBR-BBSW		3.500			06/17/2025		41,800		1,379			344			180		0
									$	(39,583	)	$	(3,520	)	$	4,434	$	(5,186	)
Total Swap Agreements									$	(38,592	)	$	(2,816	)	$	4,466	$	(5,186	)

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 73

Consolidated Schedule of Investments PIMCO Dynamic Credit and Mortgage Income Fund (Cont.)

FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY

The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of December 31, 2016:

(m) Securities with an aggregate market value of $50,037 and cash of $71,336 have been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2016.

	Financial Derivative Assets								Financial Derivative Liabilities
	Market Value		Variation Margin Asset						Market Value		Variation Margin Liability
	Purchased Options		Futures		Swap Agreements		Total		Written Options		Futures		Swap Agreements		Total
Total Exchange-Traded or Centrally Cleared	$	0	$	0	$	4,466	$	4,466	$	0	$	0	$	(5,186)	$	(5,186)

(n)  FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER

FORWARD FOREIGN CURRENCY CONTRACTS:

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
AZD		01/2017	AUD	1,628	$	1,177	$	2	$	0
BOA		01/2017	$	105,579	EUR	101,518		1,300		0
		02/2017	EUR	101,518	$	105,726		0		(1,295	)
BPS		01/2017	BRL	67,384		19,214		0		(1,489	)
		01/2017	EUR	97,808		103,739		766		0
		01/2017	$	20,676	BRL	67,384		28		0
		01/2017		1,502	EUR	1,436		10		0
CBK		01/2017	EUR	526	$	559		6		(1	)
GLM		01/2017		7,712		8,086		16		(49	)
		01/2017	GBP	95,265		118,700		1,287		0
		01/2017	$	1,014	CAD	1,330		0		(23	)
JPM		01/2017	AUD	6,582	$	4,857		107		0
		01/2017	CAD	3,584		2,697		27		0
		01/2017	GBP	157		199		5		0
		01/2017	$	1,387	CAD	1,861		0		(1	)
		01/2017		2,235	EUR	2,103		0		(21	)
		01/2017		5,606	JPY	658,983		33		0
		02/2017	JPY	658,983	$	5,613		0		(34	)
MSB		01/2017	$	3,856	AUD	5,181		0		(118	)
NAB		01/2017	GBP	1,024	$	1,284		22		0
RBC		01/2017		472		602		20		0
SCX		01/2017	JPY	658,983		5,897		258		0
		01/2017	$	1,030	EUR	989		11		0
		01/2017		1,615	GBP	1,269		0		(51	)
SOG		01/2017		119,229		96,709		0		(36	)
		02/2017	GBP	96,709	$	119,310		33		0
TOR		01/2017	BRL	64,390		19,757		0		(27	)
		01/2017	GBP	1,945		2,409		12		0
		01/2017	$	18,983	BRL	64,390		801		0
UAG		01/2017		1,085	GBP	885		6		0
Total Forward Foreign Currency Contracts							$	4,750	$	(3,145	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION⁽¹⁾

Counterparty	Reference Entity	Fixed Receive Rate			Maturity Date		Implied Credit Spread at December 31, 2016(2)			Notional Amount(3)			Premiums (Received)			Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value
																			Asset		Liability
BPS	Petrobras Global Finance BV		1.000	%		03/20/2019		2.831	%		$	20,000	$	(1,735	)	$	958		$	0	$	(777	)
BRC	Banco Espirito Santo S.A.		5.000			12/20/2020		20.084			EUR	2,500		(222	)		(584	)		0		(806	)
GST	Petrobras Global Finance BV		1.000			03/20/2019		2.831			$	15,000		(1,295	)		712			0		(583	)
	Petrobras Global Finance BV		1.000			09/20/2020		4.072				1,120		(163	)		46			0		(117	)
													$	(3,415	)	$	1,132		$	0	$	(2,283	)

74 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION⁽¹⁾

Counterparty	Index/Tranches	Fixed Receive Rate		Maturity Date		Notional Amount(3)		Premiums (Received)			Unrealized Appreciation		Swap Agreements, at  Value(4)
													Asset		Liability
BRC	ABX.HE.AAA.6-2 Index		0.110%		05/25/2046	$	10,969	$	(2,433	)	$	980	$	0	$	(1,453	)
Total Swap Agreements								$	(5,848	)	$	2,112	$	0	$	(3,736	)

⁽¹⁾  If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾  Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽³⁾  The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁴⁾  The prices and resulting values for credit default swap agreements on credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY

The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged/(received) as of December 31, 2016:

(o) Securities with an aggregate market value of $3,689 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of December 31, 2016.

	Financial Derivative Assets								Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Purchased Options		Swap Agreements		Total Over the Counter		Forward Foreign Currency Contracts			Written Options		Swap Agreements			Total Over the Counter			Net Market Value of OTC Derivatives			Collateral Pledged/ (Received)			Net Exposure(5)
AZD	$	2	$	0	$	0	$	2	$	0		$	0	$	0		$	0		$	2		$	0		$	2
BOA		1,300		0		0		1,300		(1,295	)		0		0			(1,295	)		5			0			5
BPS		804		0		0		804		(1,489	)		0		(777	)		(2,266	)		(1,462	)		826			(636	)
BRC		0		0		0		0		0			0		(2,259	)		(2,259	)		(2,259	)		2,260			1
CBK		6		0		0		6		(1	)		0		0			(1	)		5			0			5
GLM		1,303		0		0		1,303		(72	)		0		0			(72	)		1,231			(1,930	)		(699	)
GST		0		0		0		0		0			0		(700	)		(700	)		(700	)		603			(97	)
JPM		172		0		0		172		(56	)		0		0			(56	)		116			0			116
MSB		0		0		0		0		(118	)		0		0			(118	)		(118	)		0			(118	)
MYC		0		0		0		0		0			0		0			0			0			(15	)		(15	)
NAB		22		0		0		22		0			0		0			0			22			0			22
RBC		20		0		0		20		0			0		0			0			20			0			20
SCX		269		0		0		269		(51	)		0		0			(51	)		218			(100	)		118
SOG		33		0		0		33		(36	)		0		0			(36	)		(3	)		0			(3	)
TOR		813		0		0		813		(27	)		0		0			(27	)		786			(680	)		106
UAG		6		0		0		6		0			0		0			0			6			0			6
Total Over the Counter	$	4,750	$	0	$	0	$	4,750	$	(3,145	)	$	0	$	(3,736	)	$	(6,881	)

⁽⁵⁾  Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC derivatives can only be netted across transactions governed under the same master agreement with the same legal entity. The Fund and Subsidiary are recognized as two separate legal entities. As such, exposure cannot be netted. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting agreements.

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 75

Consolidated Schedule of Investments PIMCO Dynamic Credit and Mortgage Income Fund (Cont.)

FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS

The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Fund.

Fair Values of Financial Derivative Instruments on the Consolidated Statements of Assets and Liabilities as of December 31, 2016:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Total
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared
Swap Agreements	$	0	$	32	$	0	$	0	$	4,434	$	4,466
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	4,750	$	0	$	4,750
	$	0	$	32	$	0	$	4,750	$	4,434	$	9,216
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared
Swap Agreements	$	0	$	0	$	0	$	0	$	5,186	$	5,186
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	3,145	$	0	$	3,145
Swap Agreements		0		3,736		0		0		0		3,736
	$	0	$	3,736	$	0	$	3,145	$	0	$	6,881
	$	0	$	3,736	$	0	$	3,145	$	5,186	$	12,067

The effect of Financial Derivative Instruments on the Consolidated Statements of Operations for the period ended December 31, 2016:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts			Interest Rate Contracts			Total
Net Realized Gain (Loss) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Swap Agreements	$	0	$	512	$	0	$	0		$	14,420		$	14,932
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	33,236		$	0		$	33,236
Swap Agreements		0		325		0		0			(2,159	)		(1,834	)
	$	0	$	325	$	0	$	33,236		$	(2,159	)	$	31,402
	$	0	$	837	$	0	$	33,236		$	12,261		$	46,334
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Swap Agreements	$	0	$	406	$	0	$	0		$	(16,657	)	$	(16,251	)
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	(13,637	)	$	0		$	(13,637	)
Swap Agreements		0		2,783		0		0			2,322			5,105
	$	0	$	2,783	$	0	$	(13,637	)	$	2,322		$	(8,532	)
	$	0	$	3,189	$	0	$	(13,637	)	$	(14,335	)	$	(24,783	)

76 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of December 31, 2016 in valuing the Fund’s assets and liabilities:

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2016
Investments in Securities, at Value
Bank Loan Obligations	$	0	$	78,934	$	986	$	79,920
Corporate Bonds & Notes
Banking & Finance		0		293,150		101,244		394,394
Industrials		0		446,018		27,499		473,517
Utilities		0		184,779		0		184,779
Municipal Bonds & Notes
Iowa		0		1,368		0		1,368
New Jersey		0		0		6,521		6,521
Virginia		0		76		0		76
West Virginia		0		12,995		0		12,995
U.S. Government Agencies		0		28,028		0		28,028
U.S. Treasury Obligations		0		10,604		0		10,604
Non-Agency Mortgage-Backed Securities		0		1,426,578		0		1,426,578
Asset-Backed Securities		0		2,188,198		99,088		2,287,286
Sovereign Issues		0		7,432		0		7,432
Common Stocks
Financials		0		0		2,418		2,418
Short-Term Instruments
Repurchase Agreements		0		178,302		0		178,302
Short-Term Notes		0		56,599		0		56,599
U.S. Treasury Bills		0		60,124		0		60,124
Total Investments	$	0	$	4,973,185	$	237,756	$	5,210,941

Category and Subcategory	Level 1		Level 2			Level 3		Fair Value at 12/31/2016
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared	$	0	$	4,466		$	0	$	4,466
Over the counter		0		4,750			0		4,750
	$	0	$	9,216		$	0	$	9,216
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared		0		(5,186	)		0		(5,186	)
Over the counter		0		(6,881	)		0		(6,881	)
	$	0	$	(12,067	)	$	0	$	(12,067	)
Total Financial Derivative Instruments	$	0	$	(2,851	)	$	0	$	(2,851	)
Totals	$	0	$	4,970,334		$	237,756	$	5,208,090

There were no significant transfers between Levels 1 and 2 during the period ended December 31, 2016.

The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Fund during the period ended December 31, 2016:

Category and Subcategory	Beginning Balance at 06/30/2016		Net Purchases		Net Sales			Accrued Discounts/ (Premiums)			Realized Gain/(Loss)			Net Change in Unrealized Appreciation/ (Depreciation)(1)			Transfers into Level 3		Transfers out of Level 3			Ending Balance at 12/31/2016		Net Change in Unrealized Appreciation/ (Depreciation) on Investments Held at 12/31/2016(1)
Investments in Securities, at Value
Bank Loan Obligations	$	1,726	$	0	$	0		$	3		$	0		$	(743	)	$	0	$	0		$	986	$	(743	)
Corporate Bonds & Notes
Banking & Finance		103,051		0		(1,254	)		36			(49	)		(540	)		0		0			101,244		(537	)
Industrials		44,189		4,359		(48	)		133			0			(878	)		0		(20,256	)		27,499		(283	)
Utilities		4,493		0		(4,309	)		0			0			(184	)		0		0			0		0
Municipal Bonds & Notes
New Jersey		6,944		0		(80	)		(2	)		0			(341	)		0		0			6,521		(339	)
Non-Agency Mortgage-Backed Securities		18,261		0		0			91			(2	)		420			0		(18,770	)		0		0
Asset-Backed Securities		29,864		77,142		0			859			0			(8,777	)		0		0			99,088		(8,777	)
Common Stocks
Financials		1,694		0		0			0			0			724			0		0			2,418		724
Totals	$	210,222	$	81,501	$	(5,691	)	$	1,120		$	(51	)	$	(10,319	)	$	0	$	(39,026	)	$	237,756	$	(9,955	)

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 77

Consolidated Schedule of Investments PIMCO Dynamic Credit and Mortgage Income Fund (Cont.)

December 31, 2016 (Unaudited)

The following is a summary of significant unobservable inputs used in the fair valuations of assets and liabilities categorized within Level 3 of the fair value hierarchy:

Category and Subcategory	Ending Balance at 12/31/2016		Valuation Technique		Unobservable Inputs		Input Value(s) (% Unless Noted Otherwise)
Investments in Securities, at Value
Bank Loan Obligations	$	986		Other Valuation Techniques(2)		—		—
Corporate Bonds & Notes
Banking & Finance		41,877		Proxy Pricing		Base Price		102.360-108.420
		59,367		Reference Instrument		Spread movement		63.960-170.000 bps
Industrials		27,499		Proxy Pricing		Base Price		99.500-101.000
Municipal Bonds & Notes
New Jersey		6,521		Proxy Pricing		Base Price		98.860
Asset-Backed Securities		99,088		Proxy Pricing		Base Price		43.500-99,920
Common Stocks
Financials		2,418		Other Valuation Techniques(2)		—		—
Total	$	237,756

⁽¹⁾ Any difference between Net Change in Unrealized Appreciation/(Depreciation) and Net Change in Unrealized Appreciation/(Depreciation) on Investments Held at December 31, 2016 may be due to an investment no longer held or categorized as Level 3 at period end.

⁽²⁾ Includes valuation techniques not defined in the Notes to Financial Statements as securities valued using such techniques are not considered significant to the Fund.

78 PIMCO CLOSED-END FUNDS See Accompanying Notes

Consolidated Schedule of Investments PIMCO Dynamic Income Fund

December 31, 2016 (Unaudited)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
INVESTMENTS IN SECURITIES 184.5%
BANK LOAN OBLIGATIONS 1.1%
Ancestry.com, Inc.
9.250% due 10/19/2024	$		3,100	$		3,172
OGX
13.000% due 04/10/2049 ^			646			303
Rackspace Hosting, Inc.
4.500% due 11/03/2023			5,000			5,065
Save-A-Lot
7.000% due 11/29/2023			5,000			4,984
Total Bank Loan Obligations (Cost $13,443)						13,524
CORPORATE BONDS & NOTES 20.4%
BANKING & FINANCE 9.5%
AGFC Capital Trust
6.000% due 01/15/2067 (j)			12,900			6,450
Barclays Bank PLC
7.625% due 11/21/2022 (j)			10,100			11,104
Barclays PLC
6.500% due 09/15/2019 (f)(j)	EUR		2,300			2,356
7.875% due 09/15/2022 (f)	GBP		600			740
8.000% due 12/15/2020 (f)(j)	EUR		2,400			2,673
Cantor Fitzgerald LP
7.875% due 10/15/2019 (j)	$		6,540			7,248
Communications Sales & Leasing, Inc.
8.250% due 10/15/2023 (j)			1,476			1,572
Exeter Finance Corp.
9.750% due 05/20/2019			9,700			9,212
Jefferies Finance LLC
6.875% due 04/15/2022			700			679
7.500% due 04/15/2021 (j)			2,500			2,485
Jefferies LoanCore LLC
6.875% due 06/01/2020 (j)			3,800			3,648
KGH Intermediate Holdco LLC
12.000% due 08/08/2019 (h)			17,195			17,027
Lloyds Banking Group PLC
7.625% due 06/27/2023 (f)	GBP		1,500			1,941
7.875% due 06/27/2029 (f)(j)			3,625			4,736
Pinnacol Assurance
8.625% due 06/25/2034 (h)	$		10,200			10,196
Preferred Term Securities Ltd.
1.343% due 09/23/2035			909			768
Rio Oil Finance Trust
9.250% due 07/06/2024			3,077			2,908
Royal Bank of Scotland Group PLC
7.500% due 08/10/2020 (f)(j)			7,189			6,830
8.000% due 08/10/2025 (f)(j)			4,575			4,392
8.625% due 08/15/2021 (f)(j)			2,720			2,781
Santander UK Group Holdings PLC
7.375% due 06/24/2022 (f)(j)	GBP		1,700			2,109
Springleaf Finance Corp.
8.250% due 12/15/2020 (j)	$		580			632
Tesco Property Finance PLC
6.052% due 10/13/2039 (j)	GBP		3,373			4,316
TIG FinCo PLC
8.500% due 03/02/2020			997			1,263
8.750% due 04/02/2020			400			457
Toll Road Investors Partnership LP
0.000% due 02/15/2045 (d)	$		26,623			5,838
						114,361
INDUSTRIALS 7.3%
Buffalo Thunder Development Authority
0.000% due 11/15/2029 (h)			2,483			1
11.000% due 12/09/2022			5,598			2,659
Caesars Entertainment Operating Co., Inc.
9.000% due 02/15/2020 ^(g)			18,491			19,277
Carlson Travel, Inc.
6.750% due 12/15/2023			400			417

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Chesapeake Energy Corp.
4.130% due 04/15/2019	$		57	$		58
Concordia International Corp.
9.000% due 04/01/2022 (j)			1,100			936
Diamond Resorts International, Inc.
10.750% due 09/01/2024 (j)			5,500			5,418
Hellenic Railways Organization S.A.
5.014% due 12/27/2017	EUR		300			309
Intelsat Luxembourg S.A.
7.750% due 06/01/2021	$		6,000			1,995
8.125% due 06/01/2023			8,785			2,789
Intrepid Aviation Group Holdings LLC
6.875% due 02/15/2019 (j)			8,490			7,641
Mallinckrodt International Finance S.A.
4.750% due 04/15/2023			1,400			1,225
Millar Western Forest Products Ltd.
8.500% due 04/01/2021 (j)			5,214			2,894
N&W Global Vending SpA
7.000% due 10/15/2023	EUR		2,420			2,652
OGX Austria GmbH
8.500% due 06/01/2018 ^	$		16,700			0
Petroleos de Venezuela S.A.
5.500% due 04/12/2037			7,000			2,590
Safeway, Inc.
7.250% due 02/01/2031			510			499
Southern Co.
5.500% due 03/15/2057			1,150			1,163
Spirit Issuer PLC
5.472% due 12/28/2028 (j)	GBP		12,120			15,623
UCP, Inc.
8.500% due 10/21/2017	$		10,600			10,535
Unique Pub Finance Co. PLC
5.659% due 06/30/2027	GBP		2,076			2,717
6.542% due 03/30/2021			4,464			5,979
Urbi Desarrollos Urbanos S.A.B. de C.V.
9.750% due 02/03/2022 ^	$		5,000			14
						87,391
UTILITIES 3.6%
Frontier Communications Corp.
11.000% due 09/15/2025			1,330			1,378
Gazprom Neft OAO Via GPN Capital S.A.
4.375% due 09/19/2022 (j)			2,000			1,983
6.000% due 11/27/2023 (j)			28,000			29,820
Petrobras Global Finance BV
4.875% due 03/17/2020 (j)			1,960			1,943
6.250% due 12/14/2026	GBP		1,500			1,734
6.625% due 01/16/2034			700			755
6.750% due 01/27/2041 (j)	$		6,246			5,278
6.850% due 06/05/2115			1,145			933
6.875% due 01/20/2040			113			98
						43,922
Total Corporate Bonds & Notes (Cost $263,621)						245,674
MUNICIPAL BONDS & NOTES 0.1%
ILLINOIS 0.1%
Chicago, Illinois General Obligation Bonds, Series 2015
7.375% due 01/01/2033			430			446
7.750% due 01/01/2042			760			772
Total Municipal Bonds & Notes (Cost $1,170)						1,218
U.S. GOVERNMENT AGENCIES 2.3%
Fannie Mae
5.164% due 07/25/2041 (a)(j)			6,848			1,073
5.314% due 10/25/2040 (a)(j)			11,111			1,444
5.594% due 12/25/2037 (a)			386			47
5.684% due 03/25/2037 - 04/25/2037 (a)(j)			23,881			4,208
5.744% due 02/25/2037 (a)			254			40

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
5.764% due 09/25/2037 (a)(j)	$		1,226	$		224
5.894% due 11/25/2036 (a)			192			30
5.964% due 06/25/2037 (a)			912			135
5.994% due 10/25/2035 (a)(j)			3,009			539
6.224% due 03/25/2038 (a)(j)			2,594			538
6.244% due 02/25/2038 (a)(j)			1,690			295
6.344% due 06/25/2023 (a)(j)			2,345			258
10.674% due 01/25/2041 (j)			5,985			7,204
Freddie Mac
5.406% due 10/25/2028			2,000			2,135
5.706% due 05/15/2037 (a)			233			30
5.766% due 07/15/2036 (a)(j)			3,364			519
5.876% due 09/15/2036 (a)(j)			1,216			218
5.996% due 04/15/2036 (a)(j)			2,138			279
7.076% due 09/15/2036 (a)(j)			2,109			520
9.756% due 03/25/2029			2,100			2,103
11.256% due 10/25/2028			500			565
11.506% due 03/25/2025			3,264			3,835
12.700% due 09/15/2041 (j)			602			790
15.115% due 09/15/2034			214			242
Total U.S. Government Agencies (Cost $28,515)						27,271
U.S. TREASURY OBLIGATIONS 0.5%
U.S. Treasury Notes
0.875% due 01/31/2017			5,800			5,802
Total U.S. Treasury Obligations (Cost $5,802)						5,802
NON-AGENCY MORTGAGE-BACKED SECURITIES 101.7%
Alba PLC
0.633% due 12/15/2038	GBP		9,797			9,685
American Home Mortgage Assets Trust
0.874% due 08/25/2037 ^	$		11,572			5,956
1.296% due 11/25/2035 (j)			2,746			2,426
American Home Mortgage Investment Trust
0.884% due 09/25/2045 (j)			7,295			6,068
1.656% due 02/25/2044 (j)			9,739			6,437
Banc of America Alternative Loan Trust
1.156% due 05/25/2035 ^(j)			988			793
6.000% due 06/25/2037 (j)			414			357
6.000% due 06/25/2046			162			142
Banc of America Commercial Mortgage Trust
5.695% due 07/10/2046 (j)			3,037			3,032
Banc of America Funding Trust
0.000% due 06/26/2035			10,469			8,744
0.000% due 07/26/2036			14,149			7,510
0.796% due 08/25/2047 ^			8,149			6,005
0.949% due 04/20/2047 ^(j)			21,430			16,944
1.189% due 02/20/2035 (j)			4,612			3,697
3.051% due 03/20/2036 ^(j)			2,320			2,001
3.229% due 01/20/2047 ^			301			258
3.340% due 01/25/2035			490			217
Banc of America Mortgage Trust
3.082% due 01/25/2036			1,083			1,014
3.247% due 10/20/2046 ^			349			215
Banc of America Re-REMIC Trust
5.743% due 02/17/2051 (j)			38,264			38,827
Bancaja Fondo de Titulizacion de Activos
0.057% due 10/25/2037 (j)	EUR		2,501			2,577
Bayview Commercial Asset Trust
1.186% due 08/25/2034	$		185			171
BCAP LLC Trust
2.728% due 07/26/2045			7,018			6,158
2.905% due 07/26/2035			3,473			2,976
2.982% due 11/26/2035 (j)			9,467			8,316
3.076% due 03/26/2035			8,051			7,688
3.082% due 10/26/2035			6,052			5,178
3.153% due 04/26/2037 (j)			21,389			15,452
3.158% due 02/26/2036			7,693			5,467
3.190% due 06/26/2036			6,414			5,167
5.500% due 12/26/2035 (j)			9,744			7,813
6.000% due 08/26/2037			6,034			5,181
Bear Stearns Adjustable Rate Mortgage Trust
4.640% due 06/25/2047 ^(j)			5,056			4,651

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 79

Consolidated Schedule of Investments PIMCO Dynamic Income Fund (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Bear Stearns ALT-A Trust
0.956% due 02/25/2034 (j)	$		7,997	$		6,586
3.478% due 11/25/2035 ^(j)			23,649			18,961
3.515% due 09/25/2035 ^(j)			12,630			9,522
Bear Stearns Commercial Mortgage Securities Trust
5.273% due 12/11/2038 (j)			2,928			2,936
BRAD Resecuritization Trust
2.181% due 03/12/2021			26,195			1,730
6.550% due 03/12/2021			4,896			4,776
Celtic Residential Irish Mortgage Securitisation PLC
0.000% due 11/13/2047 (j)	EUR		22,036			23,026
0.031% due 12/14/2048			6,211			6,484
0.098% due 04/10/2048			8,376			8,623
Chase Mortgage Finance Trust
2.872% due 01/25/2036 (j)	$		14,079			13,026
3.097% due 03/25/2037 ^(j)			3,980			3,449
Citigroup Mortgage Loan Trust, Inc.
2.990% due 03/25/2036 ^			758			710
3.073% due 02/25/2036			8,380			5,434
3.299% due 10/25/2035 ^(j)			6,946			5,977
3.395% due 09/25/2037 ^(j)			8,995			7,707
Commercial Mortgage Loan Trust
6.095% due 12/10/2049 (j)			3,054			1,934
Commercial Mortgage Pass-Through Certificates
4.750% due 10/15/2045			1,668			1,151
Commercial Mortgage Trust
5.377% due 12/10/2046 (j)			2,342			2,337
Countrywide Alternative Loan Trust
0.774% due 12/25/2035 (a)			17,747			644
0.946% due 09/25/2046 ^(j)			16,463			12,607
1.314% due 11/25/2035 (j)			20,256			17,314
1.554% due 12/25/2035 (a)			11,706			786
3.166% due 06/25/2047			277			217
5.500% due 02/25/2020			281			282
5.500% due 07/25/2035 ^(j)			2,443			2,048
5.500% due 11/25/2035 ^			893			746
5.500% due 01/25/2036 ^			189			184
5.500% due 04/25/2037 (j)			3,366			2,799
5.750% due 01/25/2036			308			252
5.750% due 01/25/2037 ^(j)			10,578			8,622
5.750% due 04/25/2037 ^(j)			3,400			3,214
6.000% due 06/25/2036 ^(j)			510			449
6.000% due 11/25/2036 ^(j)			534			468
6.000% due 12/25/2036			258			175
6.000% due 01/25/2037 ^(j)			2,403			2,096
6.000% due 02/25/2037 ^			1,369			949
6.000% due 03/25/2037 ^(j)			16,716			11,293
6.000% due 04/25/2037 ^(j)			7,705			5,230
6.000% due 07/25/2037 ^(j)			1,994			1,929
6.394% due 07/25/2036 (a)			13,849			3,663
34.463% due 05/25/2037 ^			1,464			2,358
Countrywide Home Loan Mortgage Pass-Through Trust
1.096% due 03/25/2036			2,792			1,579
1.356% due 03/25/2035			232			200
2.626% due 03/25/2046 ^			14,329			8,289
2.987% due 11/20/2035 (j)			12,761			10,777
4.916% due 06/25/2047 ^(j)			9,168			8,078
5.000% due 11/25/2035 ^			67			56
5.500% due 12/25/2034			165			155
5.500% due 11/25/2035 ^			82			73
6.000% due 07/25/2037 ^			344			288
6.000% due 08/25/2037 (j)			8,200			6,937
6.000% due 08/25/2037 ^			4			3
Credit Suisse Commercial Mortgage Trust
6.500% due 07/26/2036 ^(j)			13,923			7,815
Credit Suisse Mortgage Capital Certificates
2.785% due 07/26/2049 (j)			9,426			7,182
3.069% due 04/26/2035 (j)			25,688			21,103
3.120% due 02/27/2047 (j)			60,561			38,512
4.341% due 07/26/2037 (j)			12,744			10,355
5.692% due 04/16/2049 (j)			10,000			9,988
7.000% due 08/26/2036			18,021			8,470
7.000% due 08/27/2036			4,280			2,658
Credit Suisse Mortgage Capital Mortgage-Backed Trust
5.896% due 04/25/2036 (j)			9,566			7,059
Debussy PLC
5.930% due 07/12/2025	GBP		21,250			25,914

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
8.250% due 07/12/2025	GBP		5,000	$		5,574
Deutsche ALT-A Securities, Inc.
6.000% due 10/25/2021 ^	$		928			822
Diversity Funding Ltd.
1.483% due 02/10/2046	GBP		402			493
1.983% due 02/10/2046			1,193			1,235
2.483% due 02/10/2046			1,170			1,069
3.733% due 02/10/2046			702			299
4.233% due 02/10/2046 ^			234			0
Emerald Mortgages PLC
0.000% due 07/15/2048 (j)	EUR		23,952			24,730
Epic Drummond Ltd.
0.000% due 01/25/2022			3,658			3,810
First Horizon Alternative Mortgage Securities Trust
2.855% due 08/25/2035 ^	$		4,005			818
6.344% due 11/25/2036 (a)			1,739			495
First Horizon Mortgage Pass-Through Trust
5.500% due 08/25/2037 ^			646			528
Fondo de Titulizacion de Activos UCI
0.000% due 06/16/2049	EUR		1,713			1,489
GreenPoint Mortgage Funding Trust
0.956% due 12/25/2046 ^	$		4,633			3,376
Grifonas Finance PLC
0.088% due 08/28/2039	EUR		13,062			10,415
GSR Mortgage Loan Trust
3.428% due 11/25/2035	$		294			258
6.500% due 08/25/2036 ^			1,078			807
HarborView Mortgage Loan Trust
0.976% due 03/19/2036 (j)			22,561			16,555
0.986% due 01/19/2036 (j)			10,609			7,036
1.389% due 06/20/2035 (j)			12,705			11,502
1.639% due 06/20/2035 (j)			2,891			2,080
Hipocat FTA
0.000% due 10/24/2039	EUR		7,129			6,066
0.000% due 01/15/2050			7,065			5,929
Impac CMB Trust
1.476% due 10/25/2034	$		331			292
Impac Secured Assets Trust
0.866% due 05/25/2037 ^			20			15
IndyMac Mortgage Loan Trust
0.956% due 11/25/2046 (j)			9,068			7,555
1.006% due 02/25/2037			4,700			3,109
1.056% due 07/25/2036			767			595
3.215% due 06/25/2037 ^(j)			6,738			5,408
3.374% due 02/25/2035			470			411
4.251% due 03/25/2037			79			69
JPMorgan Alternative Loan Trust
0.956% due 06/25/2037 (j)			41,872			23,908
2.959% due 11/25/2036 ^(j)			3,454			3,438
5.960% due 12/25/2036 ^(j)			9,347			8,246
JPMorgan Chase Commercial Mortgage Securities Trust
1.660% due 06/15/2045 (a)(j)			51,030			2,964
5.502% due 01/12/2043 (j)			3,265			3,271
5.524% due 12/15/2044 (j)			10,584			10,558
6.152% due 02/12/2051 (j)			3,000			3,023
JPMorgan Mortgage Trust
3.009% due 06/25/2037 ^(j)			6,862			6,065
3.058% due 10/25/2036			1,586			1,353
Lavender Trust
5.500% due 09/26/2035			6,808			5,924
6.000% due 11/26/2036			14,877			11,380
LB-UBS Commercial Mortgage Trust
0.482% due 02/15/2040 (a)			117,321			107
5.752% due 02/15/2040			1,700			1,689
5.872% due 06/15/2038			3,947			3,952
Lehman Mortgage Trust
5.500% due 11/25/2035 ^			94			88
6.000% due 08/25/2036 ^			1,348			1,213
6.000% due 09/25/2036 ^(j)			910			766
6.500% due 09/25/2037 ^(j)			5,650			4,239
7.250% due 09/25/2037 ^(j)			33,775			16,950
Lehman XS Trust
1.036% due 07/25/2037			24,663			8,833
1.256% due 07/25/2047			3,672			1,454

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
MASTR Adjustable Rate Mortgages Trust
0.956% due 05/25/2047 (j)	$		25,284	$		19,608
1.096% due 05/25/2047 ^			4,806			2,271
MASTR Alternative Loan Trust
1.106% due 03/25/2036			22,885			4,349
1.156% due 03/25/2036			30,249			5,845
Merrill Lynch Mortgage Investors Trust
3.147% due 05/25/2036 (j)			10,376			8,430
Morgan Stanley Capital Trust
5.690% due 04/15/2049 (j)			17,700			17,357
Morgan Stanley Re-REMIC Trust
2.807% due 01/26/2035 (j)			11,082			9,969
2.807% due 02/26/2037			6,285			5,456
2.994% due 07/26/2035 (j)			26,634			22,812
3.043% due 09/26/2035			4,998			4,518
6.000% due 04/26/2036			7,969			7,637
Newgate Funding PLC
0.573% due 12/15/2050	GBP		1,955			2,070
0.934% due 12/15/2050	EUR		2,210			2,001
1.184% due 12/15/2050			4,219			3,624
1.623% due 12/15/2050	GBP		3,335			3,635
Nomura Resecuritization Trust
9.260% due 09/26/2035	$		4,498			3,451
NovaStar Mortgage Funding Trust
0.782% due 09/25/2046 (j)			717			589
RBSSP Resecuritization Trust
2.625% due 07/26/2045 (j)			20,150			16,691
3.121% due 05/26/2037 (j)			10,085			7,739
6.000% due 03/26/2036 ^(j)			9,056			7,332
Residential Accredit Loans, Inc. Trust
0.936% due 07/25/2036 (j)			13,214			8,716
0.946% due 05/25/2037 (j)			22,496			18,742
1.567% due 01/25/2046 ^(j)			8,771			6,570
4.659% due 01/25/2036 (j)			1,079			842
6.000% due 08/25/2035 ^			1,006			916
6.000% due 06/25/2036			485			417
6.000% due 09/25/2036 ^			6,346			4,242
7.000% due 10/25/2037 (j)			13,098			11,135
Residential Asset Securitization Trust
5.500% due 07/25/2035 (j)			1,003			904
6.250% due 08/25/2037 ^			4,640			2,559
Residential Funding Mortgage Securities, Inc. Trust
4.679% due 08/25/2036 ^(j)			3,077			2,689
5.850% due 11/25/2035 ^			223			211
6.000% due 04/25/2037 ^(j)			2,235			1,989
Rite Aid Pass-Through Certificates
6.789% due 01/02/2021			10,541			10,780
RiverView HECM Trust
1.090% due 05/25/2047			9,022			7,201
Sequoia Mortgage Trust
1.109% due 07/20/2036			3,573			2,209
1.939% due 10/20/2027			1,157			983
Southern Pacific Securities PLC
3.876% due 12/10/2042	GBP		2,722			3,569
Structured Adjustable Rate Mortgage Loan Trust
3.043% due 04/25/2047 (j)	$		3,398			2,619
3.285% due 08/25/2036 (j)			4,111			2,132
4.153% due 02/25/2037 ^(j)			14,170			10,518
Structured Asset Mortgage Investments Trust
0.926% due 03/25/2037 ^			2,297			781
0.946% due 07/25/2046 ^(j)			23,389			19,493
3.162% due 02/25/2036 (j)			6,433			4,623
SunTrust Alternative Loan Trust
6.394% due 04/25/2036 ^(a)			5,729			1,877
TBW Mortgage-Backed Trust
6.500% due 07/25/2036 (j)			23,594			12,909
Theatre Hospitals PLC
3.401% due 10/15/2031	GBP		6,000			7,042
3.401% due 10/15/2031 (j)			12,152			14,264
4.151% due 10/15/2031			847			997
WaMu Mortgage Pass-Through Certificates Trust
1.176% due 06/25/2044	$		320			299
1.317% due 06/25/2047 ^			8,566			2,891
1.351% due 07/25/2047 (j)			27,730			23,998
1.447% due 10/25/2046 ^			619			524

80 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
1.567% due 02/25/2046	$		80	$		74
1.723% due 07/25/2047 ^(j)			965			740
3.894% due 03/25/2037 ^(j)			5,460			4,980
4.211% due 02/25/2037 ^			375			354
Washington Mutual Mortgage Pass-Through Certificates Trust
0.996% due 01/25/2047 ^(j)			14,916			12,106
1.356% due 07/25/2036 ^(j)			8,932			4,968
6.000% due 04/25/2037 ^(j)			5,056			4,605
Wells Fargo Alternative Loan Trust
3.139% due 07/25/2037 ^(j)			6,348			5,409
5.750% due 07/25/2037 ^(j)			654			582
Wells Fargo Mortgage Loan Trust
3.200% due 04/27/2036 (j)			27,359			24,482
Wells Fargo Mortgage-Backed Securities Trust
6.000% due 07/25/2036 ^			279			282
6.000% due 09/25/2036 ^			550			531
6.000% due 04/25/2037 ^			195			193
6.000% due 06/25/2037 ^			447			439
Total Non-Agency Mortgage-Backed Securities (Cost $1,089,463)						1,222,339
ASSET-BACKED SECURITIES 48.2%
Aegis Asset-Backed Securities Trust Mortgage Pass-Through Certificates
2.856% due 09/25/2034			740			565
Airspeed Ltd.
0.974% due 06/15/2032			7,653			5,988
ALM Ltd.
6.380% due 04/16/2027			1,500			1,404
American Money Management Corp. CLO Ltd.
7.931% due 12/09/2026			4,200			4,129
Asset-Backed Funding Certificates Trust
1.806% due 03/25/2034			1,521			1,411
Bear Stearns Asset-Backed Securities Trust
1.306% due 06/25/2036 (j)			8,846			8,026
2.253% due 10/25/2036			5,862			4,219
C-BASS CBO Corp.
1.196% due 09/06/2041			29,908			4,935
Carlyle Global Market Strategies CLO Ltd.
6.186% due 04/27/2027			1,500			1,390
Citigroup Mortgage Loan Trust, Inc.
0.916% due 12/25/2036 (j)			20,066			12,476
0.976% due 12/25/2036 (j)			10,992			5,947
1.016% due 03/25/2037 (j)			27,987			21,504
5.204% due 03/25/2036 ^(j)			2,659			1,908
5.852% due 05/25/2036 ^(j)			583			362
Conseco Finance Securitizations Corp.
9.163% due 03/01/2033 (j)			9,427			8,765
Conseco Financial Corp.
7.060% due 02/01/2031 (j)			5,676			5,801
7.500% due 03/01/2030			9,206			7,582
Cork Street CLO Designated Activity Co.
0.000% due 11/27/2028 (d)	EUR		2,667			2,325
3.600% due 11/27/2028			1,197			1,264
4.500% due 11/27/2028			1,047			1,107
6.200% due 11/27/2028			1,296			1,333
Countrywide Asset-Backed Certificates
0.886% due 12/25/2036 ^(j)	$		16,920			16,732
0.926% due 06/25/2047 (j)			6,089			5,940
0.956% due 04/25/2036 (j)			1,001			997
0.956% due 06/25/2037 ^(j)			11,089			8,197
0.956% due 06/25/2047 (j)			28,115			21,668
1.016% due 01/25/2046 ^			34,594			14,068
1.176% due 06/25/2036 ^(j)			8,000			5,396
1.556% due 03/25/2033			22			21
2.136% due 12/25/2032 ^			274			258
4.541% due 02/25/2036 (j)			207			212
4.825% due 07/25/2036			1,222			1,253
5.505% due 04/25/2036 (j)			615			611
5.588% due 08/25/2036 (j)			617			613
Countrywide Asset-Backed Certificates Trust
0.996% due 03/25/2047 (j)			7,655			5,039
1.486% due 04/25/2036 (j)			21,300			15,169
4.745% due 10/25/2046 ^(j)			3,155			2,853

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Countrywide Home Equity Loan Trust
5.657% due 03/25/2034	$		667	$		2,252
Credit-Based Asset Servicing and Securitization LLC
5.205% due 10/25/2036 (j)			10,800			10,554
CSAB Mortgage-Backed Trust
5.500% due 05/25/2037 ^(j)			5,273			4,743
Dekania Europe CDO PLC
0.203% due 09/27/2037	EUR		2,682			2,396
EMC Mortgage Loan Trust
1.034% due 12/25/2042	$		121			117
1.054% due 04/25/2042 (j)			7,192			6,922
3.006% due 04/25/2042			2,813			2,312
First Franklin Mortgage Loan Trust
1.226% due 11/25/2036 (j)			5,000			3,316
1.256% due 12/25/2035 (j)			23,487			17,203
Glacier Funding CDO Ltd.
1.146% due 08/04/2035			11,584			3,226
GMAC Mortgage Corp. Home Equity Loan Trust
6.249% due 12/25/2037 (j)			5,247			5,214
GSAMP Trust
2.631% due 06/25/2034 (j)			1,826			1,612
IndyMac Home Equity Mortgage Loan Asset-Backed Trust
6.792% due 12/25/2031 ^			992			418
JPMorgan Mortgage Acquisition Corp.
1.376% due 12/25/2035 (j)			16,459			12,409
KGS Alpha SBA Trust
1.073% due 04/25/2038 (a)			3,791			119
Lehman XS Trust
6.170% due 06/24/2046 (j)			5,111			4,870
Long Beach Mortgage Loan Trust
0.946% due 02/25/2036 (j)			13,223			8,818
1.016% due 08/25/2045 (j)			38,677			33,133
1.461% due 11/25/2035 (j)			13,368			7,766
1.806% due 02/25/2034			180			174
1.806% due 06/25/2035 (j)			27,300			21,384
Magnetite Ltd.
5.830% due 04/15/2026			2,100			1,948
MASTR Asset-Backed Securities Trust
0.906% due 03/25/2036 (j)			8,042			5,014
1.136% due 01/25/2036			400			339
Mid-State Capital Corp. Trust
6.742% due 10/15/2040			6,636			7,075
Morgan Stanley ABS Capital, Inc. Trust
0.856% due 11/25/2036			2,034			1,221
1.086% due 02/25/2037 (j)			6,828			4,229
1.791% due 01/25/2035			2,307			1,040
Morgan Stanley Home Equity Loan Trust
0.986% due 04/25/2037 (j)			34,750			21,960
National Collegiate Commutation Trust
0.000% due 03/25/2038			37,800			16,790
Oakwood Mortgage Investors, Inc.
7.840% due 11/15/2029 (j)			4,206			4,201
8.490% due 10/15/2030 ^			1,465			473
Option One Mortgage Loan Trust
1.116% due 01/25/2036 (j)			20,000			13,817
Popular ABS Mortgage Pass-Through Trust
2.006% due 08/25/2035			3,663			3,324
Putnam Structured Product Funding Ltd.
9.092% due 02/25/2037			789			801
Residential Asset Mortgage Products Trust
1.559% due 04/25/2034 (j)			10,167			8,988
Residential Asset Securities Corp. Trust
0.996% due 08/25/2036 (j)			11,000			7,627
Saxon Asset Securities Trust
1.206% due 11/25/2037 (j)			13,000			9,804
SLM Student Loan Trust
0.000% due 10/28/2029 (d)			11			9,872
0.000% due 01/25/2042 (d)			9			8,968
SoFi Professional Loan Program LLC
0.000% due 01/25/2039 (d)			9,180			5,353
Soloso CDO Ltd.
1.188% due 10/07/2037			4,800			1,968

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Sorin Real Estate CDO Ltd.
1.420% due 10/28/2046	$		7,400	$		6,727
Sound Point CLO Ltd.
5.732% due 01/23/2027			1,000			915
Soundview Home Loan Trust
1.036% due 06/25/2037 (j)			10,010			6,902
1.256% due 03/25/2036 (j)			16,905			13,165
South Coast Funding Ltd.
1.124% due 01/06/2041			10,923			2,780
1.124% due 01/06/2041 (j)			154,644			39,357
Structured Asset Securities Corp.
5.932% due 05/25/2032 ^(j)			7,112			5,942
Tropic CDO Ltd.
1.200% due 07/15/2036			6,058			4,301
1.760% due 07/15/2034			22,500			13,725
Total Asset-Backed Securities (Cost $569,939)						579,052
		SHARES
COMMON STOCKS 0.1%
CONSUMER DISCRETIONARY 0.0%
Desarrolladora Homex S.A.B. de C.V. (b)			719,113			39
ENERGY 0.0%
OGX Petroleo e Gas S.A. SP - ADR			262,786			0
FINANCIALS 0.1%
TIG FinCo PLC (h)			662,196			604
Total Common Stocks (Cost $5,984)						643
SHORT-TERM INSTRUMENTS 10.1%
REPURCHASE AGREEMENTS (i) 5.3%
						63,827
		PRINCIPAL AMOUNT (000S)
SHORT-TERM NOTES 2.2%
Federal Home Loan Bank
0.497% due 01/05/2017 - 01/11/2017 (d)(e)	$		24,500			24,499
0.507% due 01/18/2017 (d)(e)			2,600			2,600
						27,099
U.S. TREASURY BILLS 2.6%
0.455% due 02/02/2017 - 03/16/2017 (c)(d)(l)(n)			31,042			31,020
Total Short-Term Instruments (Cost $121,946)						121,946
Total Investments in Securities (Cost $2,099,883)						2,217,469
Total Investments 184.5% (Cost $2,099,883)				$		2,217,469
Financial Derivative Instruments (k)(m) (1.1)% (Cost or Premiums, net $(30,319))						(13,382	)
Other Assets and Liabilities, net (83.4)%						(1,002,183	)
Net Assets 100.0%				$		1,201,904

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 81

Consolidated Schedule of Investments PIMCO Dynamic Income Fund (Cont.)

NOTES TO CONSOLIDATED SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*):

* A zero balance may reflect actual amounts rounding to less than one thousand.

^ Security is in default.

(a) Interest only security.

(b) Security did not produce income within the last twelve months.

(c) Coupon represents a weighted average yield to maturity.

(d) Zero coupon security.

(e) Coupon represents a yield to maturity.

(f) Perpetual maturity; date shown, if applicable, represents next contractual call date.

(g) Security is subject to a forbearance agreement entered into by the Fund which forbears the Fund from taking action to, among other things, accelerate and collect payments on the subject note with respect to specified events of default.

(h)  RESTRICTED SECURITIES:

Issuer Description	Acquisition Date	Cost		Market Value		Market Value as Percentage of Net Assets
Buffalo Thunder Development Authority 0.000% due 11/15/2029	12/08/2014	$	0	$	1		0.00	%
KGH Intermediate Holdco LLC 12.000% due 08/08/2019	08/07/2014		16,998		17,027		1.42
Pinnacol Assurance 8.625% due 06/25/2034	06/23/2014		10,200		10,196		0.85
TIG FinCo PLC	04/02/2015		982		604		0.05
		$	28,180	$	27,828		2.32	%

BORROWINGS AND OTHER FINANCING TRANSACTIONS

(i)  REPURCHASE AGREEMENTS:

Counterparty	Lending Rate			Settlement Date		Maturity Date		Principal Amount		Collateralized By	Collateral (Received)			Repurchase Agreements, at Value		Repurchase Agreement Proceeds to be Received(1)
SSB		0.010	%		12/30/2016		01/03/2017	$	6,127	U.S. Treasury Notes 3.500% due 02/15/2018(2)	$	(6,250	)	$	6,127	$	6,127
BOS		0.400			12/30/2016		01/03/2017		4,800	U.S. Treasury Bonds 2.875% due 05/15/2043		(5,015	)		4,800		4,800
IND		0.500			12/30/2016		01/03/2017		52,900	U.S. Treasury Notes 3.750% due 11/15/2018		(53,994	)		52,900		52,903
Total Repurchase Agreements											$	(65,259	)	$	63,827	$	63,830

⁽¹⁾ Includes accrued interest.

⁽²⁾ Collateral is held in custody by the counterparty.

REVERSE REPURCHASE AGREEMENTS:

Counterparty	Borrowing Rate(3)			Borrowing Date		Maturity Date			Amount Borrowed(3)			Payable for Reverse Repurchase Agreements
BCY		1.500	%		12/16/2016		TBD	(4)		$     (2,695	)		$     (2,697	)
		1.900			11/16/2016		02/16/2017			(4,438	)		(4,449	)
		2.364			10/05/2016		01/05/2017			(4,290	)		(4,315	)
		2.382			10/24/2016		01/24/2017			(29,598	)		(29,737	)
		2.382			11/09/2016		02/09/2017			(5,022	)		(5,040	)
		2.411			11/21/2016		02/21/2017			(7,182	)		(7,203	)
		2.431			11/30/2016		03/02/2017			(21,268	)		(21,317	)
		2.494			12/21/2016		03/21/2017			(22,734	)		(22,754	)
		2.846			09/22/2016		09/22/2017			(1,431	)		(1,442	)
BOS		2.457			12/16/2016		01/18/2017			(12,231	)		(12,246	)
BPG		2.647			01/11/2016		01/11/2017			(3,449	)		(3,540	)
		2.731			03/16/2016		03/16/2017			(22,947	)		(23,457	)
BPS		1.640			10/06/2016		01/06/2017			(1,958	)		(1,966	)
		1.690			07/26/2016		01/26/2017			(1,457	)		(1,468	)
		1.700			11/07/2016		01/31/2017			(2,457	)		(2,464	)
		1.740			12/01/2016		03/02/2017			(802	)		(803	)
		1.840			12/22/2016		03/16/2017			(8,979	)		(8,985	)
		2.843			12/09/2016		06/09/2017			(7,770	)		(7,785	)
		2.843			12/12/2016		06/09/2017			(11,843	)		(11,864	)
		2.996			09/01/2016		09/01/2017			(52,941	)		(53,487	)
BRC		1.850			11/16/2016		02/16/2017			(5,481	)		(5,495	)
		2.734			11/02/2016		11/02/2017			(5,655	)		(5,682	)

82 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

Counterparty	Borrowing Rate(3)			Borrowing Date		Maturity Date			Amount Borrowed(3)			Payable for Reverse Repurchase Agreements
DBL		3.103	%		12/12/2016		12/12/2017	$		(22,539	)	$	(22,582	)
DEU		1.850			11/18/2016		02/09/2017			(2,178	)		(2,183	)
FOB		2.445			12/14/2016		01/17/2017			(7,164	)		(7,174	)
		2.611			11/23/2016		01/23/2017			(941	)		(944	)
JML		1.650			12/05/2016		01/10/2017			(1,576	)		(1,578	)
		1.650			12/13/2016		01/10/2017			(18,233	)		(18,251	)
JPS		2.430			11/29/2016		03/01/2017			(5,036	)		(5,048	)
MSB		2.631			05/04/2016		05/01/2017			(15,074	)		(15,105	)
		2.634			05/02/2016		05/01/2017			(5,460	)		(5,485	)
		2.637			04/29/2016		05/01/2017			(27,515	)		(27,641	)
		2.680			08/25/2016		08/25/2017			(43,390	)		(43,511	)
		2.681			12/01/2016		12/01/2017			(5,650	)		(5,664	)
		2.687			08/29/2016		08/29/2017			(76,014	)		(76,205	)
NOM		2.481			08/03/2016		02/03/2017			(8,544	)		(8,578	)
		2.483			08/08/2016		02/08/2017			(16,000	)		(16,059	)
PAR		0.850			11/17/2016		01/27/2017	GBP		(3,428	)		(4,229	)
RBC		2.397			11/07/2016		05/08/2017	$		(8,186	)		(8,217	)
		2.495			08/18/2016		02/21/2017			(3,229	)		(3,260	)
		2.550			09/26/2016		03/27/2017			(4,002	)		(4,030	)
RCE		1.193			10/14/2016		01/16/2017	GBP		(2,978	)		(3,680	)
		1.296			10/18/2016		01/18/2017			(10,624	)		(13,129	)
RDR		1.390			07/19/2016		01/19/2017	$		(7,071	)		(7,117	)
		1.650			10/28/2016		01/30/2017			(4,640	)		(4,654	)
		1.650			11/03/2016		02/03/2017			(7,148	)		(7,168	)
		1.650			11/07/2016		02/07/2017			(2,745	)		(2,752	)
RTA		2.208			04/13/2016		04/12/2017			(7,491	)		(7,613	)
		2.222			04/07/2016		04/06/2017			(28,555	)		(29,033	)
		2.225			04/22/2016		04/21/2017			(1,542	)		(1,566	)
		2.225			05/16/2016		05/15/2017			(37,773	)		(38,315	)
		2.227			05/12/2016		05/11/2017			(22,824	)		(23,157	)
		2.227			08/19/2016		05/11/2017			(5,539	)		(5,586	)
		2.230			04/29/2016		04/27/2017			(8,493	)		(8,624	)
		2.244			04/28/2016		04/27/2017			(14,071	)		(14,290	)
		2.247			07/11/2016		07/10/2017			(10,836	)		(10,955	)
		2.273			07/14/2016		07/13/2017			(34,995	)		(35,377	)
		2.285			06/10/2016		06/09/2017			(9,683	)		(9,810	)
		2.312			05/31/2016		05/30/2017			(7,720	)		(7,828	)
		2.326			07/21/2016		07/20/2017			(4,292	)		(4,338	)
		2.359			07/27/2016		07/25/2017			(9,206	)		(9,303	)
		2.543			11/14/2016		05/15/2017			(7,496	)		(7,522	)
		2.559			09/23/2016		03/23/2017			(11,366	)		(11,448	)
		2.559			10/28/2016		05/01/2017			(2,820	)		(2,833	)
		2.574			11/22/2016		05/22/2017			(7,287	)		(7,309	)
		2.605			11/22/2016		11/21/2017			(14,085	)		(14,128	)
		2.645			12/08/2016		12/07/2017			(9,910	)		(9,929	)
		2.790			12/22/2016		12/21/2017			(17,914	)		(17,931	)
SBI		1.782			10/24/2016		01/24/2017			(2,662	)		(2,671	)
		1.835			11/29/2016		03/01/2017			(8,499	)		(8,514	)
SOG		0.200			11/23/2016		02/23/2017	EUR		(3,939	)		(4,147	)
		0.237			10/25/2016		01/25/2017			(2,181	)		(2,297	)
		0.385			09/23/2016		01/23/2017			(19,884	)		(20,954	)
		1.600			12/05/2016		01/31/2017	$		(965	)		(966	)
		1.650			08/26/2016		02/27/2017			(5,017	)		(5,047	)
		1.650			10/24/2016		02/27/2017			(1,370	)		(1,374	)
		1.650			11/28/2016		02/27/2017			(2,768	)		(2,776	)
		2.526			08/05/2016		02/06/2017			(19,997	)		(20,077	)
		2.526			10/11/2016		04/11/2017			(12,018	)		(12,089	)
		2.533			11/09/2016		05/09/2017			(3,483	)		(3,496	)
		2.540			10/27/2016		04/27/2017			(8,294	)		(8,334	)
		2.556			08/17/2016		02/17/2017			(11,445	)		(11,482	)
		2.587			11/28/2016		05/30/2017			(27,688	)		(27,760	)
		2.613			12/14/2016		06/14/2017			(15,819	)		(15,842	)
UBS		0.480			10/18/2016		01/18/2017	EUR		(16,976	)		(17,889	)
		1.080			11/18/2016		01/20/2017	GBP		(3,127	)		(3,859	)
		1.600			10/28/2016		01/30/2017	$		(1,243	)		(1,247	)
		1.730			11/28/2016		02/28/2017			(5,198	)		(5,207	)
		1.830			11/14/2016		02/14/2017			(5,834	)		(5,849	)
		1.850			12/28/2016		03/14/2017			(3,573	)		(3,574	)
		2.334			10/25/2016		01/25/2017			(2,454	)		(2,465	)
		2.374			07/05/2016		01/05/2017			(2,316	)		(2,344	)
		2.387			11/09/2016		02/09/2017			(3,407	)		(3,419	)
Total Reverse Repurchase Agreements												$	(1,023,014	)

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 83

Consolidated Schedule of Investments PIMCO Dynamic Income Fund (Cont.)

⁽³⁾ The average amount of borrowings outstanding during the period ended December 31, 2016 was $(1,034,082) at a weighted average interest rate of 2.151%.

⁽⁴⁾ Open maturity reverse repurchase agreement.

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of December 31, 2016:

(j) Securities with an aggregate market value of $1,371,835 and cash of $1,405 have been pledged as collateral under the terms of the following master agreements as of December 31, 2016.

Counterparty	Repurchase Agreement Proceeds to be Received		Payable for Reverse Repurchase Agreements			Payable for Sale-Buyback Transactions		Total Borrowings and Other Financing Transactions			Collateral Pledged/(Received)			Net Exposure(5)
Global/Master Repurchase Agreement
BCY	$	0	$	(98,954	)	$	0	$	(98,954	)	$	134,720		$	35,766
BOS		4,800		(12,246	)		0		(7,446	)		11,936			4,490
BPG		0		(26,997	)		0		(26,997	)		36,584			9,587
BPS		0		(88,822	)		0		(88,822	)		120,708			31,886
BRC		0		(11,177	)		0		(11,177	)		15,527			4,350
DBL		0		(22,582	)		0		(22,582	)		39,805			17,223
DEU		0		(2,183	)		0		(2,183	)		2,781			598
FOB		0		(8,118	)		0		(8,118	)		9,905			1,787
IND		52,903		0			0		52,903			(53,994	)		(1,091	)
JML		0		(19,829	)		0		(19,829	)		24,872			5,043
JPS		0		(5,048	)		0		(5,048	)		7,120			2,072
MSC		0		(173,611	)		0		(173,611	)		241,523			67,912
NOM		0		(24,637	)		0		(24,637	)		30,478			5,841
PAR		0		(4,229	)		0		(4,229	)		5,277			1,048
RBC		0		(15,507	)		0		(15,507	)		22,313			6,806
RCE		0		(16,809	)		0		(16,809	)		19,914			3,105
RDR		0		(21,691	)		0		(21,691	)		23,012			1,321
RTA		0		(276,895	)		0		(276,895	)		367,804			90,909
SBI		0		(11,185	)		0		(11,185	)		13,144			1,959
SOG		0		(136,641	)		0		(136,641	)		180,412			43,771
SSB		6,127		0			0		6,127			(6,250	)		(123	)
UBS		0		(45,853	)		0		(45,853	)		57,667			11,814
Total Borrowings and Other Financing Transactions	$	63,830	$	(1,023,014	)	$	0

⁽⁵⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. The Fund and Subsidiary are recognized as two separate legal entities. As such, exposure cannot be netted. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements.

CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS

Remaining Contractual Maturity of the Agreements

	Overnight and Continuous		Up to 30 days			31-90 days			Greater Than 90 days			Total
Reverse Repurchase Agreements
Corporate Bonds & Notes	$	0	$	(51,197	)	$	(53,319	)	$	(2,697	)	$	(107,213	)
U.S. Government Agencies		0		(6,122	)		(9,920	)		0			(16,042	)
Non-Agency Mortgage-Backed Securities		0		(98,001	)		(115,880	)		(432,270	)		(646,151	)
Asset-Backed Securities		0		(12,433	)		(55,807	)		(185,368	)		(253,608	)
Total Borrowings	$	0	$	(167,753	)	$	(234,926	)	$	(620,335	)	$	(1,023,014	)
Gross amount of recognized liabilities for reverse repurchase agreements												$	(1,023,014	)

(k)  FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION⁽¹⁾

Reference Entity	Fixed Receive Rate	Maturity Date		Implied Credit Spread at December 31, 2016(2)		Notional Amount(3)		Market Value		Unrealized Appreciation		Variation Margin
												Asset		Liability
Navient Corp.	5.000%		12/20/2021		3.595%	$	4,600		$    292	$	312	$	5	$	0

84 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

⁽¹⁾ If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽³⁾ The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

INTEREST RATE SWAPS

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Maturity Date		Notional Amount		Market Value			Unrealized Appreciation/ (Depreciation)			Variation Margin
															Asset		Liability
Receive	3-Month USD-LIBOR		1.500	%		12/21/2021	$	117,200	$	(2,686	)	$	(4,349	)	$	138	$	0
Receive	3-Month USD-LIBOR		4.000			06/20/2022		134,000		(13,919	)		12,298			0		(214	)
Pay	3-Month USD-LIBOR		1.750			12/21/2023		291,000		(8,138	)		(13,620	)		587		0
Receive	3-Month USD-LIBOR		1.750			12/21/2026		303,000		(16,909	)		(24,342	)		1,034		0
Receive	3-Month USD-LIBOR		2.500			06/15/2036		110,300		1,573			12,579			0		(664	)
Receive	3-Month USD-LIBOR		2.750			03/20/2043		76,400		(2,490	)		(4,021	)		0		(593	)
Receive	3-Month USD-LIBOR		3.750			06/18/2044		12,200		(2,836	)		(2,809	)		0		(107	)
Receive	3-Month USD-LIBOR		3.500			12/17/2044		44,200		(8,090	)		(5,483	)		0		(387	)
Receive	3-Month USD-LIBOR		3.250			06/17/2045		45,600		(6,033	)		(2,303	)		0		(398	)
Receive	3-Month USD-LIBOR		2.750			12/16/2045		3,800		(120	)		(164	)		0		(33	)
									$	(59,648	)	$	(32,214	)	$	1,759	$	(2,396	)
Total Swap Agreements									$	(59,356	)	$	(31,902	)	$	1,764	$	(2,396	)

FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY

The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of December 31, 2016:

(l) Securities with an aggregate market value of $11,243 and cash of $24,038 have been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2016.

	Financial Derivative Assets								Financial Derivative Liabilities
	Market Value		Variation Margin Asset				Total		Market Value		Variation Margin Liability				Total
	Purchased Options		Futures		Swap Agreements				Written Options		Futures		Swap Agreements
Total Exchange-Traded or Centrally Cleared	$	0	$	0	$	1,764	$	1,764	$	0	$	0	$	(2,396)	$	(2,396)

(m)  FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER

FORWARD FOREIGN CURRENCY CONTRACTS:

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
BOA		01/2017	GBP	195	$	239	$	0	$	(1	)
		01/2017	$	68,927	EUR	66,276		849		0
		02/2017	EUR	66,276	$	69,023		0		(846	)
BPS		01/2017		71,100		75,411		557		0
		01/2017	GBP	62,936		78,699		1,130		0
CBK		01/2017	$	8,570	EUR	8,190		70		(17	)
GLM		01/2017	BRL	1,563	$	478		0		(2	)
		01/2017	EUR	3,987		4,184		7		(20	)
		01/2017	GBP	14,314		17,836		193		0
		01/2017	$	480	BRL	1,563		1		0
		01/2017		1,008	GBP	799		0		(24	)
JPM		01/2017	EUR	969	$	1,012		0		(8	)
		01/2017	$	848	EUR	796		0		(10	)
NAB		01/2017	GBP	208	$	261		4		0
RBC		01/2017		610		759		7		0
SCX		01/2017	EUR	7,378		7,841		73		0

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 85

Consolidated Schedule of Investments PIMCO Dynamic Income Fund (Cont.)

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
SOG		01/2017	$	94,451	GBP	76,611	$	0	$	(28	)
		02/2017	GBP	76,611	$	94,516		26		0
UAG		01/2017	EUR	261		278		3		0
		01/2017	$	8,957	EUR	8,433		0		(79	)
		01/2017		1,046	GBP	853		6		0
Total Forward Foreign Currency Contracts							$	2,926	$	(1,035	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION⁽¹⁾

Counterparty	Reference Entity	Fixed Receive Rate			Maturity Date		Implied Credit Spread at December 31, 2016(2)			Notional Amount(3)		Premiums (Received)			Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value
																		Asset		Liability
BPS	Petrobras Global Finance BV		1.000	%		06/20/2021		4.502	%		$    4,600	$	(1,243	)	$	608		$	0	$	(635	)
	Petrobras Global Finance BV		1.000			12/20/2021		4.729			100		(16	)		0			0		(16	)
	Royal Bank of Scotland PLC		1.000			12/20/2018		1.677			800		(20	)		9			0		(11	)
BRC	Petrobras Global Finance BV		1.000			06/20/2021		4.502			800		(218	)		108			0		(110	)
GST	Petrobras Global Finance BV		1.000			06/20/2021		4.502			3,931		(1,070	)		528			0		(542	)
	Petrobras Global Finance BV		1.000			12/20/2021		4.729			500		(78	)		(2	)		0		(80	)
HUS	Petrobras Global Finance BV		1.000			09/20/2020		4.072			240		(34	)		9			0		(25	)
	Petrobras Global Finance BV		1.000			06/20/2021		4.502			7,200		(1,968	)		974			0		(994	)
												$	(4,647	)	$	2,234		$	0	$	(2,413	)

CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION⁽¹⁾

Counterparty	Index/Tranches	Fixed Receive Rate		Maturity Date		Notional Amount(3)		Premiums (Received)			Unrealized Appreciation		Swap Agreements, at Value(4)
													Asset		Liability
FBF	ABX.HE.AA.6-2 Index		0.170%		05/25/2046	$	28,886	$	(25,672	)	$	13,444	$	0	$	(12,228	)
Total Swap Agreements								$	(30,319	)	$	15,678	$	0	$	(14,641	)

⁽¹⁾ If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽³⁾ The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁴⁾ The prices and resulting values for credit default swap agreements on credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

86 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY

The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged/(received) as of December 31, 2016:

(n) Securities with an aggregate market value of $13,993 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of December 31, 2016.

	Financial Derivative Assets								Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Purchased Options		Swap Agreements		Total Over the Counter		Forward Foreign Currency Contracts			Written Options		Swap Agreements			Total Over the Counter			Net Market Value of OTC Derivatives			Collateral Pledged/ (Received)			Net Exposure(5)
BOA	$	849	$	0	$	0	$	849	$	(847	)	$	0	$	0		$	(847	)	$	2		$	0		$	2
BPS		1,687		0		0		1,687		0			0		(662	)		(662	)		1,025			(2,070	)		(1,045	)
BRC		0		0		0		0		0			0		(110	)		(110	)		(110	)		0			(110	)
CBK		70		0		0		70		(17	)		0		0			(17	)		53			0			53
FBF		0		0		0		0		0			0		(12,228	)		(12,228	)		(12,228	)		12,311			83
GLM		201		0		0		201		(46	)		0		0			(46	)		155			(330	)		(175	)
GST		0		0		0		0		0			0		(622	)		(622	)		(622	)		701			79
HUS		0		0		0		0		0			0		(1,019	)		(1,019	)		(1,019	)		981			(38	)
JPM		0		0		0		0		(18	)		0		0			(18	)		(18	)		0			(18	)
NAB		4		0		0		4		0			0		0			0			4			0			4
RBC		7		0		0		7		0			0		0			0			7			0			7
SCX		73		0		0		73		0			0		0			0			73			0			73
SOG		26		0		0		26		(28	)		0		0			(28	)		(2	)		0			(2	)
UAG		9		0		0		9		(79	)		0		0			(79	)		(70	)		0			(70	)
Total Over the Counter	$	2,926	$	0	$	0	$	2,926	$	(1,035	)	$	0	$	(14,641	)	$	(15,676	)

⁽⁵⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC derivatives can only be netted across transactions governed under the same master agreement with the same legal entity. The Fund and Subsidiary are recognized as two separate legal entities. As such, exposure cannot be netted. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting agreements.

FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS

The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Fund.

Fair Values of Financial Derivative Instruments on the Consolidated Statements of Assets and Liabilities as of December 31, 2016:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Total
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared
Swap Agreements	$	0	$	5	$	0	$	0	$	1,759	$	1,764
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	2,926	$	0	$	2,926
	$	0	$	5	$	0	$	2,926	$	1,759	$	4,690
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared
Swap Agreements	$	0	$	0	$	0	$	0	$	2,396	$	2,396
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	1,035	$	0	$	1,035
Swap Agreements		0		14,641		0		0		0		14,641
	$	0	$	14,641	$	0	$	1,035	$	0	$	15,676
	$	0	$	14,641	$	0	$	1,035	$	2,396	$	18,072

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 87

Consolidated Schedule of Investments PIMCO Dynamic Income Fund (Cont.)

The effect of Financial Derivative Instruments on the Consolidated Statements of Operations for the period ended December 31, 2016:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts			Interest Rate Contracts			Total
Net Realized Gain on Financial Derivative Instruments
Exchange-traded or centrally cleared
Swap Agreements	$	0	$	26	$	0	$	0		$	23,726		$	23,752
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	19,686		$	0		$	19,686
Swap Agreements		0		130		0		0			0			130
	$	0	$	130	$	0	$	19,686		$	0		$	19,816
	$	0	$	156	$	0	$	19,686		$	23,726		$	43,568
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Swap Agreements	$	0	$	312	$	0	$	0		$	(16,498	)	$	(16,186	)
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	(7,012	)	$	0		$	(7,012	)
Swap Agreements		0		2,668		0		0			0			2,668
	$	0	$	2,668	$	0	$	(7,012	)	$	0		$	(4,344	)
	$	0	$	2,980	$	0	$	(7,012	)	$	(16,498	)	$	(20,530	)

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of December 31, 2016 in valuing the Fund’s assets and liabilities:

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2016
Investments in Securities, at Value
Bank Loan Obligations	$	0	$	13,221	$	303	$	13,524
Corporate Bonds & Notes
Banking & Finance		0		77,926		36,435		114,361
Industrials		0		76,856		10,535		87,391
Utilities		0		43,922		0		43,922
Municipal Bonds & Notes
Illinois		0		1,218		0		1,218
U.S. Government Agencies		0		27,271		0		27,271
U.S. Treasury Obligations		0		5,802		0		5,802
Non-Agency Mortgage-Backed Securities		0		1,202,450		19,889		1,222,339
Asset-Backed Securities		0		535,554		43,498		579,052
Common Stocks
Consumer Discretionary		39		0		0		39
Financials		0		0		604		604
Short-Term Instruments
Repurchase Agreements		0		63,827		0		63,827
Short-Term Notes		0		27,099		0		27,099
U.S. Treasury Bills		0		31,020		0		31,020
Total Investments	$	39	$	2,106,166	$	111,264	$	2,217,469

Category and Subcategory	Level 1		Level 2			Level 3		Fair Value at 12/31/2016
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared	$	0	$	1,764		$	0	$	1,764
Over the counter		0		2,926			0		2,926
	$	0	$	4,690		$	0	$	4,690
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared		0		(2,396	)		0		(2,396	)
Over the counter		0		(15,676	)		0		(15,676	)
	$	0	$	(18,072	)	$	0	$	(18,072	)
Total Financial Derivative Instruments	$	0	$	(13,382	)	$	0	$	(13,382	)
Totals	$	39	$	2,092,784		$	111,264	$	2,204,087

There were no significant transfers between Levels 1 and 2 during the period ended December 31, 2016.

88 PIMCO CLOSED-END FUNDS See Accompanying Notes

December 31, 2016 (Unaudited)

The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Fund during the period ended December 31, 2016:

Category and Subcategory	Beginning Balance at 06/30/2016		Net Purchases		Net Sales			Accrued Discounts/ (Premiums)		Realized Gain/(Loss)		Net Change in Unrealized Appreciation/ (Depreciation)(1)			Transfers into Level 3		Transfers out of Level 3			Ending Balance at 12/31/2016		Net Change in Unrealized Appreciation/ (Depreciation) on Investments Held at 12/31/2016(1)
Investments in Securities, at Value
Bank Loan Obligations	$	529	$	0	$	0		$	1	$	0	$	(227	)	$	0	$	0		$	303	$	(228	)
Corporate Bonds & Notes
Banking & Finance		36,558		0		(113	)		53		1		(64	)		0		0			36,435		(71	)
Industrials		10,671		0		0			6		0		(142	)		0		0			10,535		(142	)
Non-Agency Mortgage-Backed Securities		29,243		10		(2,171	)		16		391		(1,673	)		0		(5,927	)		19,889		(1,177	)
Asset-Backed Securities		28,781		33,836		0			317		0		(5,368	)		0		(14,068	)		43,498		(3,847	)
Common Stocks
Financials		423		0		0			0		0		181			0		0			604		181
Totals	$	106,205	$	33,846	$	(2,284	)	$	393	$	392	$	(7,293	)	$	0	$	(19,995	)	$	111,264	$	(5,284	)

The following is a summary of significant unobservable inputs used in the fair valuations of assets and liabilities categorized within Level 3 of the fair value hierarchy:

Category and Subcategory	Ending Balance at 12/31/2016		Valuation Technique	Unobservable Inputs	Input Value(s) (% Unless Noted Otherwise)
Investments in Securities, at Value
Bank Loan Obligations	$	303	Other Valuation Techniques(2)	—		—
Corporate Bonds & Notes
Banking & Finance		10,196	Proxy Pricing	Base Price		102.677
		26,239	Reference Instrument	Spread Movement		63.962-170.000 bps
Industrials		10,535	Proxy Pricing	Base Price		99.500
Non-Agency Mortgage-Backed Securities		19,889	Proxy Pricing	Base Price		6.650-105.500
Asset-Backed Securities		43,498	Proxy Pricing	Base Price		3.141-99,920
Common Stocks
Financials		604	Other Valuation Techniques(2)	—		—
Total	$	111,264

⁽¹⁾  Any difference between Net Change in Unrealized Appreciation/(Depreciation) and Net Change in Unrealized Appreciation/(Depreciation) on Investments Held at December 31, 2016 may be due to an investment no longer held or categorized as Level 3 at period end.

⁽²⁾  Includes valuation techniques not defined in the Notes to Financial Statements as securities valued using such techniques are not considered significant to the Fund.

See Accompanying Notes SEMIANNUAL REPORT DECEMBER 31, 2016 89

Notes to Financial Statements

1. ORGANIZATION

PCM Fund, Inc., PIMCO Global StocksPLUS^® & Income Fund, PIMCO Income Opportunity Fund, PIMCO Strategic Income Fund, Inc., PIMCO Dynamic Credit and Mortgage Income Fund (formerly, PIMCO Dynamic Credit Income Fund) and PIMCO Dynamic Income Fund (each a “Fund” and collectively the “Funds”) are organized as closed-end management investment companies registered under the Investment Company Act of 1940, as amended, and the rules and regulations thereunder (the “Act”). PIMCO Global StocksPLUS^® & Income Fund, PIMCO Income Opportunity Fund, PIMCO Dynamic Credit and Mortgage Income Fund and PIMCO Dynamic Income Fund were organized as Massachusetts business trusts on the dates shown in the table below. PCM Fund, Inc. and PIMCO Strategic Income Fund, Inc. were organized as Maryland corporations on the dates shown in the table below. Pacific Investment Management Company LLC (“PIMCO” or the “Manager”) serves as the Funds’ investment manager.

Fund Name	Formation Date
PCM Fund, Inc.		June 23, 1993
PIMCO Global StocksPLUS® & Income Fund		February 16, 2005
PIMCO Income Opportunity Fund		September 12, 2007
PIMCO Strategic Income Fund, Inc.		December 9, 1993
PIMCO Dynamic Credit and Mortgage Income Fund		September 27, 2012
PIMCO Dynamic Income Fund		January 19, 2011

PCM Fund, Inc. has the authority to issue 300 million shares of $0.001 par value common stock. PIMCO Strategic Income Fund, Inc. has the authority to issue 500 million shares of $0.00001 par value common stock. PIMCO Global StocksPLUS^® & Income Fund, PIMCO Income Opportunity Fund, PIMCO Dynamic Credit and Mortgage Income Fund and PIMCO Dynamic Income Fund have authorized an unlimited number of Common Shares at a par value of $0.00001 per share.

Hereinafter, the terms “Trustee” or “Trustees” shall refer to a Director or Directors of applicable Funds.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Each Fund is treated as an investment company under the reporting requirements of U.S. GAAP. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

(a) Securities Transactions and Investment Income  Securities transactions are recorded as of the trade date for financial reporting purposes. Realized gains (losses) from securities sold are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as a Fund is informed of the ex-dividend date. Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from settlement date, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective date. For convertible securities, premiums attributable to the conversion feature are not amortized. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized appreciation (depreciation) on investments on the Statements of Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain (loss) on investments on the Statements of Operations. Paydown gains (losses) on mortgage-related and other asset-backed securities are recorded as components of interest income on the Statements of Operations. Income or short-term capital gain distributions received from underlying funds are recorded as dividend income. Long-term capital gain distributions received from underlying funds are recorded as realized gains.

Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is probable.

(b) Cash and Foreign Currency  The functional and reporting currency for the Funds is the U.S. dollar. The market values of foreign securities, currency holdings and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the current exchange rates each business day. Purchases and sales of securities and income and expense items denominated in foreign currencies, if any, are translated into U.S. dollars at the exchange rate in effect on the transaction date. The Funds do not separately report the effects of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and net changes in unrealized appreciation (depreciation) from investments on the Statements of Operations. The Funds may invest in foreign currency-denominated securities and may engage in foreign currency transactions either on a spot (cash) basis at the rate prevailing in the currency exchange market at the time or through a forward foreign currency contract. Realized foreign exchange gains (losses) arising from sales of

90 PIMCO CLOSED-END FUNDS

December 31, 2016 (Unaudited)

spot foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid are included in net realized gain (loss) on foreign currency transactions on the Statements of Operations. Net unrealized foreign exchange gains (losses) arising from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period are included in net change in unrealized appreciation or depreciation on foreign currency assets and liabilities on the Statements of Operations.

(c) Distributions — Common Shares  The following table shows the anticipated frequency of distributions from net investment income and gains from the sale of portfolio securities and other sources to common shareholders.

	Distribution Frequency
Fund Name	Declared		Distributed
PCM Fund, Inc.		Monthly		Monthly
PIMCO Dynamic Credit and Mortgage Income Fund		Monthly		Monthly
PIMCO Dynamic Income Fund		Monthly		Monthly
PIMCO Global StocksPLUS® & Income Fund		Monthly		Monthly
PIMCO Income Opportunity Fund		Monthly		Monthly
PIMCO Strategic Income Fund, Inc.		Monthly		Monthly

Net realized capital gains earned by each Fund, if any, will be distributed no less frequently than once each year.

A Fund may engage in investment strategies, including the use of derivatives, to, among other things, generate current, distributable income even if such strategies could potentially result in declines in the Fund’s net asset value (“NAV”). A Fund’s income and gain-generating strategies, including certain derivatives strategies, may generate current income and gains taxable as ordinary income sufficient to support monthly distributions even in situations when the Fund has experienced a decline in net assets due to, for example, adverse changes in the broad U.S. or non-U.S. equity markets or the Fund’s debt investments, or arising from its use of derivatives. A Fund may enter into opposite sides of interest rate swap and other derivatives for the principal purpose of generating distributable gains on the one side (characterized as ordinary income for tax purposes) that are not part of the Fund’s duration or yield curve management strategies (“paired swap transactions”), and with a substantial possibility that the Fund will experience a corresponding capital loss and decline in NAV with respect to the opposite side transaction (to the extent it does not have corresponding offsetting capital gains). Consequently, common shareholders may receive distributions and owe tax at a time when their investment in a Fund has declined in value, which tax may be at

ordinary income rates, and which may be economically similar to a taxable return of capital. The tax treatment of certain derivatives may be open to different interpretations. Any recharacterization of payments made or received by a Fund pursuant to derivatives potentially could affect the amount, timing or character of Fund distributions. In addition, the tax treatment of such investment strategies may be changed by regulation or otherwise.

PIMCO Strategic Income Fund, Inc. (“RCS”) accounts for mortgage dollar rolls as financing transactions. Please see “Federal Income Tax Matters” in the Notes to Financial Statements for information regarding such treatment by RCS and its impact on the Fund’s distributions and related tax consequences.

Income and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may cause timing differences between income and capital gain recognition. Examples of events that give rise to timing differences include wash sales, straddles and capital loss carryforwards. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. Examples of transactions that may cause character differences include the treatment of paydowns on mortgage-backed securities, swaps, foreign currency transactions and contingent debt instruments. As a result, income and capital gain distributions declared during a fiscal period may differ significantly from the net investment income (loss) and realized gains (losses) reported on the Fund’s annual financial statements presented under U.S. GAAP.

If a Fund estimates that a portion of one of its dividend distributions may be comprised of amounts from sources other than net investment income, the Fund will notify shareholders of record of the estimated composition of such distribution through a Section 19 Notice. To determine the sources of a Fund’s distributions during the reporting period, the Fund references its internal accounting records at the time the distribution is paid and generally bases its projections of the final tax character of those distributions on the tax characteristics of the distribution reflected in its internal accounting records at the time of such payment. If, based on such records, a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between a Fund’s daily internal accounting records, the Fund’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Notwithstanding a Fund’s estimates and projections, it is possible that a Fund may not issue a Section 19 Notice in situations where the

SEMIANNUAL REPORT DECEMBER 31, 2016 91

Notes to Financial Statements (Cont.)

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. Additionally, given differences in tax and U.S. GAAP treatment of certain distributions, a Fund may not issue a Section 19 Notice in situations where the Fund’s financial statements prepared later and in accordance with U.S. GAAP might report that the sources of these distributions included capital gains and/or a return of capital. Please visit www.pimco.com for the most recent Section 19 Notice, if applicable, for additional information regarding the composition of distributions. Final determination of a distribution’s tax character will be reported on Form 1099 DIV sent to shareholders each January.

Distributions classified as a tax basis return of capital, if any, are reflected on the Statements of Changes in Net Assets and have been recorded to paid in capital. In addition, other amounts have been reclassified between undistributed (overdistributed) net investment income (loss), accumulated undistributed (overdistributed) net realized gains (losses) and/or paid in capital to more appropriately conform U.S. GAAP to tax characterizations of distributions.

(d) Statement of Cash Flows  U.S. GAAP requires entities providing financial statements that report both financial position and results of operations to also provide a Statement of Cash Flows for each period for which results of operations are provided, but exempts investment companies meeting certain conditions. One of the conditions is that substantially all of the enterprise’s investments were carried at fair value during the period and classified as Level 1 or Level 2 in the fair value hierarchy in accordance with the requirements of U.S. GAAP. Another condition is that the enterprise had little or no debt, based on the average debt outstanding during the period, in relation to average total assets. Funds with certain degrees of borrowing activity, typically through the use of reverse repurchase agreements, sale-buyback transactions or mortgage dollar rolls, have been determined to be at a level requiring a Statement of Cash Flows. Statements of Cash Flows, as applicable, have been prepared using the indirect method which requires net increase (decrease) in net assets resulting from operations to be adjusted to reconcile to net cash flows from operating activities.

(e) New Accounting Pronouncements  In August 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) 2014-15 requiring management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern. The ASU is effective prospectively for annual periods ending after December 15, 2016, and interim periods thereafter. The ASU did not have an impact on the Funds’ financial statements.

In May 2015, the FASB issued ASU 2015-07 which removes the requirement to categorize within the fair value hierarchy all investments

for which fair value is measured using the net asset value (“NAV”) per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. The ASU did not have an impact on the Funds’ financial statements.

In August 2016, the FASB issued ASU 2016-15 which amends ASC 230 to clarify guidance on the classification of certain cash receipts and cash payments in the statement of cash flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. At this time, management is evaluating the implications of these changes on the financial statements.

In October 2016, the U.S. Securities and Exchange Commission (“SEC”) adopted new rules and forms, and amendments to certain current rules and forms, to modernize reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, and will also change the rules governing the form and content of such financial statements. The amendments to Regulation S-X take effect on August 1, 2017. At this time, management is assessing the anticipated impact of these regulatory developments.

In November 2016, the FASB issued ASU 2016-18 which amends ASC 230 to provide guidance on the classification and presentation of changes in restricted cash and restricted cash equivalents on the statement of cash flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. At this time, management is evaluating the implications of these changes on the financial statements.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

(a) Investment Valuation Policies  The NAV of a Fund’s shares is determined by dividing the total value of portfolio investments and other assets attributable to that Fund less any liabilities by the total number of shares outstanding of that Fund.

On each day that the New York Stock Exchange (“NYSE”) is open, Fund shares are ordinarily valued as of the close of regular trading (“NYSE Close”). Information that becomes known to the Funds or their agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. Each Fund reserves the right to change the time as of which its respective NAV is calculated if the Fund closes earlier, or as permitted by the SEC.

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For purposes of calculating NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Funds’ approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Funds will normally use pricing data for domestic equity securities received shortly after the NYSE Close and do not normally take into account trading, clearances or settlements that take place after the NYSE Close. A foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by PIMCO to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services or other pricing sources. A Fund’s investments in open-end management investment companies, other than exchange-traded funds (“ETFs”), are valued at the NAVs of such investments.

If a foreign (non-U.S.) equity security’s value has materially changed after the close of the security’s primary exchange or principal market but before the NYSE Close, the security may be valued at fair value based on procedures established and approved by the Board of Trustees (the “Board”). Foreign (non-U.S.) equity securities that do not trade when the NYSE is open are also valued at fair value. With respect to foreign (non-U.S.) equity securities, a Fund may determine the fair value of investments based on information provided by Pricing Services and other third-party vendors, which may recommend fair value or adjustments with reference to other securities, indices or assets. In considering whether fair valuation is required and in determining fair values, a Fund may, among other things, consider significant events (which may be considered to include changes in the value of U.S.

securities or securities indices) that occur after the close of the relevant market and before the NYSE Close. A Fund may utilize modeling tools provided by third-party vendors to determine fair values of non-U.S. securities. Foreign exchanges may permit trading in foreign (non-U.S.) equity securities on days when a Fund is not open for business, which may result in a Fund’s portfolio investments being affected when shareholders are unable to buy or sell shares.

Senior secured floating rate loans for which an active secondary market exists to a reliable degree will be valued at the mean of the last available bid/ask prices in the market for such loans, as provided by a Pricing Service. Senior secured floating rate loans for which an active secondary market does not exist to a reliable degree will be valued at fair value, which is intended to approximate market value. In valuing a senior secured floating rate loan at fair value, the factors considered may include, but are not limited to, the following: (a) the creditworthiness of the borrower and any intermediate participants, (b) the terms of the loan, (c) recent prices in the market for similar loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, period until next interest rate reset and maturity.

Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing Services. As a result, the value of such investments and, in turn, the NAV of a Fund’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that a Fund is not open for business. As a result, to the extent that a Fund holds foreign (non-U.S.) investments, the value of those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Fund’s next calculated NAV.

Investments for which market quotes or market-based valuations are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to PIMCO the responsibility for applying the fair valuation methods. In the event that market quotes or market-based valuations are not readily available, and the security or asset cannot be valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Valuation Oversight Committee of the Board (“Valuation Oversight Committee”), generally based on recommendations provided by the Manager. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, indicative market quotations (“Broker

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Quotes”), Pricing Services’ prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of a Fund’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated to the Manager the responsibility for monitoring significant events that may materially affect the values of a Fund’s securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.

When a Fund uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV, such investments will not be priced on the basis of quotes from the primary market in which they are traded, but rather may be priced by another method that the Board or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Funds’ policy is intended to result in a calculation of a Fund’s NAV that fairly reflects security values as of the time of pricing, the Funds cannot ensure that fair values determined by the Board or persons acting at their direction would accurately reflect the price that a Fund could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by a Fund may differ from the value that would be realized if the securities were sold.

(b) Fair Value Hierarchy  U.S. GAAP describes fair value as the price that a Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, or 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:

^∎  Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities.

^∎  Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

^∎  Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable

inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments.

Assets or liabilities categorized as Level 2 or 3 as of period end have been transferred between Levels 2 and 3 since the prior period due to changes in the method utilized in valuing the investments. Transfers from Level 3 to Level 2 are a result of the availability of current and reliable market-based data provided by Pricing Services or other valuation techniques which utilize significant observable inputs. In accordance with the requirements of U.S. GAAP, the amounts of transfers between Levels 1 and 2 and transfers into and out of Level 3, if material, are disclosed in the Notes to Schedule of Investments of each respective Fund.

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to realized gain (loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value is used for the transfers between Levels of a Fund’s assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Schedule of Investments for each respective Fund.

(c) Valuation Techniques and the Fair Value Hierarchy

Level 1 and Level 2 trading assets and trading liabilities, at fair value  The valuation methods (or “techniques”) and significant inputs used in determining the fair values of portfolio securities or other assets and liabilities categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:

Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities and non-U.S. bonds are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The Pricing Services’ internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Fixed income securities purchased on a delayed-delivery basis or as a repurchase commitment in a sale-buyback transaction are marked to

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market daily until settlement at the forward settlement date and are categorized as Level 2 of the fair value hierarchy.

Mortgage-related and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also normally valued by Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche, and incorporate deal collateral performance, as available. Mortgage-related and asset-backed securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Common stocks, ETFs, exchange-traded notes and financial derivative instruments, such as futures contracts, rights and warrants, or options on futures that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy.

Valuation adjustments may be applied to certain securities that are solely traded on a foreign exchange to account for the market movement between the close of the foreign market and the NYSE Close. These securities are valued using Pricing Services that consider the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments. Securities using these valuation adjustments are categorized as Level 2 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are also categorized as Level 2 of the fair value hierarchy.

Short-term debt instruments (such as commercial paper) having a remaining maturity of 60 days or less may be valued at amortized cost, so long as the amortized cost of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Short-term debt instruments having a remaining maturity of 60 days or less are categorized as Level 2 of the fair value hierarchy.

Equity exchange-traded options and over the counter financial derivative instruments, such as forward foreign currency contracts and options contracts, derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These contracts are normally valued on the basis of quotes obtained from a quotation reporting system, established market makers or Pricing Services (normally determined as of the NYSE Close). Depending on the product and the terms of the transaction, financial derivative instruments can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as

quoted prices, issuer details, indices, bid/ask spreads, interest rates, implied volatilities, yield curves, dividends and exchange rates. Financial derivative instruments that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Centrally cleared swaps and over the counter swaps derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. They are valued using a broker-dealer bid quotation or based on market-based prices provided by Pricing Services (normally determined as of the NYSE close). Centrally cleared swaps and over the counter swaps can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models may use inputs that are observed from actively quoted markets such as the overnight index swap rate (“OIS”), London Interbank Offered Rate (“LIBOR”) forward rate, interest rates, yield curves and credit spreads. These securities are categorized as Level 2 of the fair value hierarchy.

Level 3 trading assets and trading liabilities, at fair value  When a fair valuation method is applied by PIMCO that uses significant unobservable inputs, investments will be priced by a method that the Board or persons acting at their direction believe reflects fair value and are categorized as Level 3 of the fair value hierarchy. The valuation techniques and significant inputs used in determining the fair values of portfolio assets and liabilities categorized as Level 3 of the fair value hierarchy are as follows:

Proxy pricing procedures set the base price of a fixed income security and subsequently adjust the price proportionally to market value changes of a pre-determined security deemed to be comparable in duration, generally a U.S. Treasury or sovereign note based on country of issuance. The base price may be a broker-dealer quote, transaction price, or an internal value as derived by analysis of market data. The base price of the security may be reset on a periodic basis based on the availability of market data and procedures approved by the Valuation Oversight Committee. Significant changes in the unobservable inputs of the proxy pricing process (the base price) would result in direct and proportional changes in the fair value of the security. These securities are categorized as Level 3 of the fair value hierarchy.

If third-party evaluated vendor pricing is not available or not deemed to be indicative of fair value, the Manager may elect to obtain Broker Quotes directly from the broker-dealer or passed through from a third-party vendor. In the event that fair value is based upon a single sourced Broker Quote, these securities are categorized as Level 3 of the fair value hierarchy. Broker Quotes are typically received from established market participants. Although independently received, the Manager does not have the transparency to view the underlying inputs which support the market quotation. Significant changes in the Broker Quote would have direct and proportional changes in the fair value of the security.

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Reference instrument valuation estimates fair value by utilizing the correlation of the security to one or more broad-based securities market indices, and/or other financial instruments, whose pricing information is readily available. Unobservable inputs may include those used in algorithm formulas based on percentage change in the reference instruments and/or weights of each reference instrument. Significant changes in the unobservable inputs would result in direct and proportional changes in the fair value of the security. These securities are categorized as Level 3 of the fair value hierarchy.

The validity of the fair value is reviewed by the Manager on a periodic basis and may be amended in accordance with a Fund’s valuation procedures.

4. SECURITIES AND OTHER INVESTMENTS

(a) Investments in Securities

Loan Participations, Assignments and Originations  Certain Funds may invest in direct debt instruments which are interests in amounts owed to lenders or lending syndicates by corporate, governmental, or other borrowers. A Fund’s investments in loans may be in the form of direct investments, participations in loans or assignments of all or a portion of loans from third parties or exposure to investments in or originations of loans through investments in a mutual fund or other pooled investment vehicle. A loan is often administered by a bank or other financial institution (the “agent”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. A Fund may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. A Fund generally has no right to enforce compliance with the terms of the loan agreement with the borrower. As a result, a Fund may be subject to the credit risk of both the borrower and the agent that is selling the loan agreement.

In the event of the insolvency of the agent selling a participation, a Fund may be treated as a general creditor of the agent and may not benefit from any set-off between the agent and the borrower. When a Fund purchases assignments from agents it acquires direct rights against the borrowers of the loans. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing through, for example, the issuance of bonds, frequently high yield bonds issued for the purpose of acquisitions.

Investments in loans are generally subject to risks similar to those of investments in other types of debt obligations, including, among others, credit risk, interest rate risk, variable and floating rate securities risk, and risks associated with mortgage-related securities. In addition, in many cases loans are subject to the risks associated with below-investment grade securities. The Funds may be subject to heightened or

additional risks and potential liabilities and costs by investing in mezzanine and other subordinated loans or acting as an originator of loans, including those arising under bankruptcy, fraudulent conveyance, equitable subordination, lender liability, environmental and other laws and regulations, and risks and costs associated with debt servicing and taking foreclosure actions associated with the loans. To the extent that a Fund originates a loan, it may be responsible for all or a substantial portion of the expenses associated with initiating the loan. This may include significant legal and due diligence expenses, which will be indirectly borne by a Fund and its shareholders. A Fund may pay fees and expenses associated with originating a loan, including significant legal and due diligence expenses, irrespective of whether the loan transaction is ultimately consummated or closed.

Additionally, because loans are not ordinarily registered with the SEC or any state securities commission or listed on any securities exchange, there is usually less publicly available information about such instruments. In addition, loans may not be considered “securities” for purposes of the anti-fraud provisions under the federal securities laws and, as a result, as a purchaser of these instruments, a Fund may not be entitled to the anti-fraud protections of the federal securities laws. In the course of investing in such instruments, a Fund may come into possession of material nonpublic information and, because of prohibitions on trading in securities of issuers while in possession of such information, the Fund may be unable to enter into a transaction in a publicly-traded security of that issuer when it would otherwise be advantageous for the Fund to do so. Alternatively, a Fund may choose not to receive material nonpublic information about an issuer of such loans, with the result that the Fund may have less information about such issuers than other investors who transact in such assets.

The types of loans and related investments in which the Funds may invest include, among others, senior loans, subordinated loans (including second lien loans, B-Notes and mezzanine loans), whole loans, commercial real estate and other commercial loans and structured loans. The Funds may originate loans or acquire direct interests in loans through primary loan distributions and/or in private transactions. In the case of subordinated loans, there may be significant indebtedness ranking ahead of the borrower’s obligation to the holder of such a loan, including in the event of the borrower’s insolvency. Mezzanine loans are typically secured by a pledge of an equity interest in the mortgage borrower that owns the real estate rather than an interest in a mortgage.

Investments in loans may include unfunded loan commitments, which are contractual obligations for future funding. Unfunded loan commitments may include revolving credit facilities, which may obligate a Fund to supply additional cash to the borrower on demand. Unfunded loan commitments represent a future obligation in full, even

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though a percentage of the committed amount may not be utilized by the borrower. When investing in a loan participation, a Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the agent selling the loan agreement and only upon receipt of payments by the agent from the borrower. Because investing in unfunded loan commitments creates a future obligation for a Fund to provide funding to a borrower upon demand in exchange for a fee, the Fund will segregate or earmark liquid assets with the Fund’s custodian in amounts sufficient to satisfy any such future obligations. A Fund may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan. In certain circumstances, a Fund may receive a penalty fee upon the prepayment of a loan by a borrower. Fees earned or paid are recorded as a component of interest income or interest expense, respectively, on the Statements of Operations. As of December 31, 2016, the Funds had no unfunded loan commitments outstanding.

Mortgage-Related and Other Asset-Backed Securities  Certain Funds may invest in mortgage-related and other asset-backed securities that directly or indirectly represent a participation in, or are secured by and payable from, loans on real property. Mortgage-related securities are created from pools of residential or commercial mortgage loans, including mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. These securities typically provide a monthly payment which consists of both principal and interest. Interest may be determined by fixed or adjustable rates. In times of declining interest rates, there is a greater likelihood that a Fund’s higher yielding securities will be pre-paid with the Fund being unable to reinvest the proceeds in an investment with as great a yield. The rate of prepayments on underlying mortgages will affect the price and volatility of a mortgage-related security, and may have the effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. Interest-only and principal-only securities are especially sensitive to interest rate changes, which can affect not only their prices but can also change the income flows and repayment assumptions about those investments. The timely payment of principal and interest of certain mortgage-related securities is guaranteed with the full faith and credit of the U.S. Government. Pools created and guaranteed by non-governmental issuers, including government-sponsored corporations, may be supported by various forms of insurance or guarantees, but there can be no assurance that private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Many of the risks of investing in mortgage-related securities secured by commercial mortgage loans (“CMBS”) reflect the effects of local and other economic conditions on real estate markets, the ability of tenants to make lease payments, and the ability of a property to attract and retain tenants. These securities may be less liquid and may exhibit greater

price volatility than other types of mortgage-related or other asset-backed securities. Other asset-backed securities are created from many types of assets, including without limitation, auto loans, credit card receivables, home equity loans, and student loans.

Collateralized Debt Obligations  (“CDOs”) include Collateralized Bond Obligations (“CBOs”), Collateralized Loan Obligations (“CLOs”) and other similarly structured securities. CBOs and CLOs are types of asset-backed securities. A CBO is a trust which is typically backed by a diversified pool of high risk, below investment grade fixed income securities. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. For both CBOs and CLOs, the cash flows from the trust are split into two or more portions, called tranches, varying in risk and yield. The riskiest portion is the “equity” tranche which bears the bulk of defaults from the bonds or loans in the trust and serves to protect the other, more senior tranches from default in all but the most severe circumstances. Since it is partially protected from defaults, a senior tranche from a CBO trust or CLO trust typically has higher ratings and lower yields than the underlying securities, and can be rated investment grade. Despite the protection from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults and aversion to CBO or CLO securities as a class. The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the CDO in which a Fund invests. CDOs carry additional risks including, but not limited to, (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments, (ii) the collateral may decline in value or default, (iii) a Fund may invest in CDOs that are subordinate to other classes, and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results.

Collateralized Mortgage Obligations  (“CMOs”) are debt obligations of a legal entity that are collateralized by whole mortgage loans or private mortgage bonds and divided into classes. CMOs are structured into multiple classes, often referred to as “tranches,” with each class bearing a different stated maturity and entitled to a different schedule for payments of principal and interest, including prepayments. CMOs may be less liquid and may exhibit greater price volatility than other types of mortgage-related or asset-backed securities.

As CMOs have evolved, some classes of CMO bonds have become more common. For example, a Fund may invest in parallel-pay and

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planned amortization class (“PAC”) CMOs and multi-class pass-through certificates. Parallel-pay CMOs and multi-class pass-through certificates are structured to provide payments of principal on each payment date to more than one class. These simultaneous payments are taken into account in calculating the stated maturity date or final distribution date of each class, which, as with other CMO and multi-class pass-through structures, must be retired by its stated maturity date or final distribution date but may be retired earlier. PACs generally require payments of a specified amount of principal on each payment date. PACs are parallel-pay CMOs with the required principal amount on such securities having the highest priority after interest has been paid to all classes. Any CMO or multi-class pass-through structure that includes PAC securities must also have support tranches — known as support bonds, companion bonds or non-PAC bonds — which lend or absorb principal cash flows to allow the PAC securities to maintain their stated maturities and final distribution dates within a range of actual prepayment experience. These support tranches are subject to a higher level of maturity risk compared to other mortgage-related securities, and usually provide a higher yield to compensate investors. If principal cash flows are received in amounts outside a pre-determined range such that the support bonds cannot lend or absorb sufficient cash flows to the PAC securities as intended, the PAC securities are subject to heightened maturity risk. A Fund may invest in various tranches of CMO bonds, including support bonds and equity or “first loss” tranches (see “Collateralized Debt Obligations” below).

Stripped Mortgage-Backed Securities  (“SMBS”) are derivative multi-class mortgage securities. SMBS are usually structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. An SMBS will have one class that will receive all of the interest (the interest-only or “IO” class), while the other class will receive the entire principal (the principal-only or “PO” class). IOs and POs can be extremely volatile in response to changes in interest rates. As interest rates rise and fall, the value of IOs tends to move in the same direction as interest rates. POs perform best when prepayments on the underlying mortgages rise since this increases the rate at which the principal is returned and the yield to maturity on the PO. When payments on mortgages underlying a PO are slower than anticipated, the life of the PO is lengthened and the yield to maturity is reduced. The yield to maturity on an IO class is extremely sensitive to the rate of principal payments (including prepayments) on the related underlying mortgage assets, and a rapid rate of principal payments may have a material adverse effect on a Fund’s yield to maturity from these securities. If the underlying mortgage assets experience greater than anticipated prepayments of principal, the Funds may fail to recoup some or all of its initial investment in these securities even if the security is in one of the highest rating categories.

Payments received for IOs are included in interest income on the Statements of Operations. Because no principal will be received at the maturity of an IO, adjustments are made to the cost of the security on a monthly basis until maturity. These adjustments are included in interest income on the Statements of Operations. Payments received for POs are treated as reductions to the cost and par value of the securities.

Payment In-Kind Securities  Certain Funds may invest in payment in-kind securities (“PIKs”). PIKs may give the issuer the option at each interest payment date of making interest payments in either cash or additional debt securities. Those additional debt securities usually have the same terms, including maturity dates and interest rates, and associated risks as the original bonds. The daily market quotations of the original bonds may include the accrued interest (referred to as a dirty price) and require a pro rata adjustment from the unrealized appreciation or depreciation on investments to interest receivable on the Statements of Assets and Liabilities.

Restricted Securities  Certain Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities may generally be sold privately, but are required to be registered or exempted from such registration before being sold to the public. Private placement securities are generally considered to be restricted except for those securities traded between qualified institutional investors under the provisions of Rule 144A of the Securities Act of 1933. Disposal of restricted securities may involve time-consuming negotiations and expenses, and prompt sale at an acceptable price may be difficult to achieve. Restricted securities held by the Funds at December 31, 2016 are disclosed in the Notes to Schedules of Investments.

U.S. Government Agencies or Government-Sponsored Enterprises  Certain Funds may invest in securities of U.S. Government agencies or government-sponsored enterprises. U.S. Government securities are obligations of and, in certain cases, guaranteed by, the U.S. Government, its agencies or instrumentalities. Some U.S. Government securities, such as Treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association (“GNMA” or “Ginnie Mae”), are supported by the full faith and credit of the U.S. Government; others, such as those of the Federal Home Loan Banks, are supported by the right of the issuer to borrow from the U.S. Department of the Treasury (the “U.S. Treasury”); and others, such as those of the Federal National Mortgage Association (“FNMA” or “Fannie Mae”), are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations.

U.S. Government securities may include zero coupon securities. Zero coupon securities do not distribute interest on a current basis and tend to be subject to a greater risk than interest-paying securities. Government-related guarantors (i.e., not backed by the full faith and

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credit of the U.S. Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). FNMA is a government-sponsored corporation. FNMA purchases conventional (i.e., not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks and credit unions and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC issues Participation Certificates (“PCs”), which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit of the U.S. Government.

Certain Funds may engage in strategies where they seek to extend the expiration or maturity of a position, such as a To Be Announced (“TBA”) security on an underlying asset, by closing out the position before expiration and opening a new position with respect to the same underlying asset with a later expiration date. TBA securities purchased or sold are reflected on the Statements of Assets and Liabilities as an asset or liability, respectively.

5. BORROWINGS AND OTHER FINANCING TRANSACTIONS

The following disclosures contain information on a Fund’s ability to lend or borrow cash or securities to the extent permitted under the Act, which may be viewed as borrowing or financing transactions by a Fund. The location of these instruments in each Fund’s financial statements is described below. For a detailed description of credit and counterparty risks that can be associated with borrowings and other financing transactions, please see Note 7, Principal Risks.

(a) Repurchase Agreements  Certain Funds may engage in repurchase agreements. Under the terms of a typical repurchase agreement, a Fund purchases an underlying debt obligation (collateral) subject to an obligation of the seller to repurchase, and a Fund to resell, the obligation at an agreed-upon price and time. The underlying securities for all repurchase agreements are held by a Fund’s custodian or designated subcustodians under tri-party repurchase agreements. The market value of the collateral must be equal to or exceed the total amount of the repurchase obligations, including interest. Repurchase agreements, if any, including accrued interest, are included on the Statements of Assets and Liabilities. Interest earned is recorded as a component of interest income on the Statements of Operations. In periods of increased demand for collateral, a Fund may pay a fee for the receipt of collateral, which may result in interest expense to the Fund.

(b) Reverse Repurchase Agreements  Certain Funds may enter into reverse repurchase agreements. In a reverse repurchase agreement, a Fund delivers a security in exchange for cash to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed upon price and date. In an open maturity reverse repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Fund or counterparty at any time. A Fund is entitled to receive principal and interest payments, if any, made on the security delivered to the counterparty during the term of the agreement. Cash received in exchange for securities delivered plus accrued interest payments to be made by a Fund to counterparties are reflected as a liability on the Statements of Assets and Liabilities. Interest payments made by a Fund to counterparties are recorded as a component of interest expense on the Statements of Operations. In periods of increased demand for the security, a Fund may receive a fee for use of the security by the counterparty, which may result in interest income to the Fund. In the event the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, a Fund’s use of the proceeds of the agreement may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to repurchase the securities. Reverse repurchase agreements involve leverage risk and also the risk that the market value of the securities to be repurchased may decline below the repurchase price (see Note 7, Principal Risks).

(c) Sale-Buybacks  Certain Funds may enter into financing transactions referred to as ‘sale-buybacks’. A sale-buyback transaction consists of a sale of a security by a Fund to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed-upon price and date. A Fund is not entitled to receive principal and interest payments, if any, made on the security sold to the counterparty during the term of the agreement. The agreed-upon proceeds for securities to be repurchased by a Fund are reflected as a liability on the Statements of Assets and Liabilities. A Fund will recognize net income represented by the price differential between the price received for the transferred security and the agreed-upon repurchase price. This is commonly referred to as the ‘price drop’. A price drop consists of (i) the foregone interest and inflationary income adjustments, if any, a Fund would have otherwise received had the security not been sold and (ii) the negotiated financing terms between a Fund and counterparty. Foregone interest and inflationary income adjustments, if any, are recorded as components of interest income on the Statements of Operations. Interest payments based upon negotiated financing terms made by a Fund to counterparties are recorded as a component of interest expense on the Statements of Operations. In periods of increased demand for the security, a Fund may receive a fee for use of the security by the counterparty, which may

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result in interest income to the Fund. Sale-buybacks involve leverage risk and also the risk that the market value of the securities to be repurchased may decline below the repurchase price (see Note 7, Principal Risks).

(d) Mortgage Dollar Rolls  Certain Funds may enter into mortgage dollar roll transactions. Mortgage dollar rolls involve a Fund selling securities for delivery in the current month and simultaneously contracting to repurchase substantially similar (same type, same or similar interest rate and maturity) securities on a specified future date. The difference between the selling price and future purchase price is an adjustment to interest income on the Statements of Operations. During the roll period, a Fund forgoes principal and interest paid on the securities. A Fund’s dollar roll transactions are intended to enhance the Fund’s yield by earning a spread between the yield on the underlying mortgage securities and short-term interest rates. Dollar rolls involve leverage risk and also the risk that the market value of the securities to be repurchased may decline below the repurchase price (see Note 7, Principal Risks). PIMCO Strategic Income Fund, Inc. (“RCS”) accounts for mortgage dollar rolls as financing transactions. Please see “Federal Income Tax Matters” in the Notes to Financial Statements for information regarding such treatment by RCS and its impact on the Fund’s distributions and related tax consequences.

6. FINANCIAL DERIVATIVE INSTRUMENTS

The following disclosures contain information on how and why the Funds may use financial derivative instruments, the credit-risk-related contingent features in certain financial derivative instruments and how financial derivative instruments affect the Funds’ financial position, results of operations and cash flows. The location and fair value amounts of these instruments on the Statements of Assets and Liabilities and of the realized appreciation (depreciation) and changes in unrealized appreciation (depreciation) related to such instruments on the Statements of Operations, each categorized by type of financial derivative contract and related risk exposure, are included in a table in the Notes to Schedules of Investments. The financial derivative instruments outstanding as of period end and the amounts of realized and changes in unrealized appreciation (depreciation) on financial derivative instruments during the period, as disclosed in the Notes to Schedules of Investments, serve as indicators of the volume of financial derivative activity for the Funds.

PIMCO Global StocksPLUS^® & Income Fund is subject to regulation as a commodity pool under the Commodity Exchange Act pursuant to recent rule changes by the Commodity Futures Trading Commission (the “CFTC”). The Manager has registered with the CFTC as a Commodity Pool Operator and a Commodity Trading Adviser with respect to the Fund, and is a member of the National Futures

Association. As a result, additional CFTC-mandated disclosure, reporting and recordkeeping obligations apply to PIMCO Global StocksPLUS^® & Income Fund. Compliance with the CFTC’s regulatory requirements could increase PIMCO Global StocksPLUS^® & Income Fund’s expenses, adversely affecting its total return.

(a) Forward Foreign Currency Contracts  Certain Funds may enter into forward foreign currency contracts in connection with settling planned purchases or sales of securities, to hedge the currency exposure associated with some or all of a Fund’s securities or as a part of an investment strategy. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked to market daily, and the change in value is recorded by a Fund as an unrealized gain (loss).

Realized gains (losses) are equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed and are recorded upon delivery or receipt of the currency. The contractual obligations of a buyer or seller of a forward foreign currency contract may generally be satisfied by taking or making physical delivery of the underlying currency, establishing an opposite position in the contract and recognizing the profit or loss on both positions simultaneously on the delivery date or, in some instances, paying a cash settlement before the designated date of delivery. These contracts may involve market risk in excess of the unrealized gain (loss) reflected on the Statements of Assets and Liabilities. Although forwards may be intended to minimize the risk of loss due to a decline in the value of the hedged currencies, at the same time, they tend to limit any potential gain which might result should the value of such currencies increase. In addition, a Fund could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if the value of the currency changes unfavorably to the U.S. dollar. To mitigate such risk, cash or securities may be exchanged as collateral pursuant to the terms of the underlying contracts.

(b) Futures Contracts  Certain Funds may enter into futures contracts. A Fund may use futures contracts to manage its exposure to the securities markets or to movements in interest rates and currency values or for other investment purposes. Generally, a futures contract provides for the future sale by one party and purchase by another party of a specified quantity of the security or other financial instrument at a specified price and time. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by a Fund and the prices of futures contracts and the possibility of an illiquid market. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, a Fund is required to deposit with its futures

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broker an amount of cash, U.S. Government and Agency Obligations, or select sovereign debt, in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily, and based on changes in the price of the contracts, a Fund pays or receives cash or other eligible assets equal to the daily change in the value of the contract (“variation margin”). Gains (losses) are recognized but not considered realized until the contracts expire or close. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin included within exchange traded or centrally cleared financial derivative instruments on the Statements of Assets and Liabilities.

(c) Options Contracts  Certain Funds may write call and put options on securities and financial derivative instruments they own or in which they may invest. An option on an instrument (or an index) is a contract that gives the holder of the option, in return for a premium, the right to buy from (in the case of a call) or sell to (in the case of a put) the writer of the option the instrument underlying the option (or the cash value of the index) at a specified exercise price at any time during the term of the option. Writing put options tends to increase a Fund’s exposure to the underlying instrument. Writing call options tends to decrease a Fund’s exposure to the underlying instrument. When a Fund writes a call or put, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. These liabilities are included on the Statements of Assets and Liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying futures, swap, security or currency transaction to determine the realized gain (loss). Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. A Fund as a writer of an option has no control over whether the underlying instrument may be sold (“call”) or purchased (“put”) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk a Fund may not be able to enter into a closing transaction because of an illiquid market.

Certain Funds may also purchase put and call options. Purchasing call options tends to increase a Fund’s exposure to the underlying instrument. Purchasing put options tends to decrease a Fund’s exposure to the underlying instrument. A Fund pays a premium which is included as an asset on the Statements of Assets and Liabilities and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk

associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain (loss) when the underlying transaction is executed.

Options on Exchange-Traded Futures Contracts  Certain Funds may write or purchase options on exchange-traded futures contracts (“Futures Options”) to hedge an existing position or future investment, for speculative purposes or to manage exposure to market movements. A Futures Option is an option contract in which the underlying instrument is a single futures contract.

Options on Securities  Certain Funds may write or purchase options on securities. An option uses a specified security as the underlying instrument for the option contract. A Fund may write or purchase options to enhance returns or to hedge an existing position or future investment.

(d) Swap Agreements  Certain Funds may invest in swap agreements. Swap agreements are bilaterally negotiated agreements between a Fund and a counterparty to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap agreements may be privately negotiated in the over the counter market (“OTC swaps”) or may be cleared through a third party, known as a central counterparty or derivatives clearing organization (“Centrally Cleared Swaps”). A Fund may enter into asset, credit default, cross-currency, interest rate, total return, variance and other forms of swap agreements to manage its exposure to credit, currency, interest rate, commodity, equity and inflation risk. In connection with these agreements, securities or cash may be identified as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency.

Centrally Cleared Swaps are marked to market daily based upon valuations as determined from the underlying contract or in accordance with the requirements of the central counterparty or derivatives clearing organization. Changes in market value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Statements of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as variation margin on the Statements of Assets and Liabilities. OTC swap payments received or paid at the beginning of the measurement period are included on the Statements of Assets and Liabilities and represent premiums paid or received upon entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Upfront premiums received (paid) are initially recorded as liabilities (assets) and subsequently

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marked to market to reflect the current value of the swap. These upfront premiums are recorded as realized gains (losses) on the Statements of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination of the swap is recorded as realized gain (loss) on the Statements of Operations. Net periodic payments received or paid by a Fund are included as part of realized gains (losses) on the Statements of Operations.

For purposes of applying a Fund’s investment policies and restrictions, swap agreements are generally valued by a Fund at market value. In the case of a credit default swap, however, in applying certain of a Fund’s investment policies and restrictions, the Funds will value the credit default swap at its notional value or its full exposure value (i.e., the sum of the notional amount for the contract plus the market value), but may value the credit default swap at market value for purposes of applying certain of a Fund’s other investment policies and restrictions. For example, a Fund may value credit default swaps at full exposure value for purposes of a Fund’s credit quality guidelines (if any) because such value reflects a Fund’s actual economic exposure during the term of the credit default swap agreement. In this context, both the notional amount and the market value may be positive or negative depending on whether a Fund is selling or buying protection through the credit default swap. The manner in which certain securities or other instruments are valued by a Fund for purposes of applying investment policies and restrictions may differ from the manner in which those investments are valued by other types of investors.

Entering into swap agreements involves, to varying degrees, elements of interest, credit, market and documentation risk in excess of the amounts recognized on the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements and that there may be unfavorable changes in interest rates or the asset upon which the swap is based.

A Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive. The risk may be mitigated by having a master netting arrangement between a Fund and the counterparty and by the posting of collateral to a Fund to cover a Fund’s exposure to the counterparty.

Credit Default Swap Agreements  A Fund may use credit default swaps on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where a Fund owns or has exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. Credit default swap agreements involve one party making a stream of payments

(referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event that the referenced entity, obligation or index, as specified in the agreement, undergoes a certain credit event. As a seller of protection on credit default swap agreements, a Fund will generally receive from the buyer of protection a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, a Fund would effectively add leverage to its portfolio because, in addition to its total net assets, a Fund would be subject to investment exposure on the notional amount of the swap.

If a Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, a Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If a Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, a Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event).

Credit default swap agreements on corporate or sovereign issues involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a default or other credit event. If a credit event occurs and cash settlement is not elected, a variety of other deliverable obligations may be delivered in lieu of the specific referenced obligation. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event).

Credit default swap agreements on asset-backed securities involve one party making a stream of payments to another party in exchange for

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the right to receive a specified return in the event of a default or other credit event. Unlike credit default swaps on corporate loan, U.S. municipal, U.S. Treasury or sovereign issues, deliverable obligations in most instances would be limited to the specific referenced obligation, as performance for asset-backed securities can vary across deals. Prepayments, principal paydowns, and other writedown or loss events on the underlying mortgage loans will reduce the outstanding principal balance of the referenced obligation. These reductions may be temporary or permanent as defined under the terms of the swap agreement and the notional amount for the swap agreement will be adjusted by corresponding amounts. A Fund may use credit default swaps on asset-backed securities to provide a measure of protection against defaults of the referenced obligation or to take an active long or short position with respect to the likelihood of a particular referenced obligation’s default.

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. Credit default swaps on credit indices may be used to hedge a portfolio of credit default swaps or bonds, which is less expensive than it would be to buy many credit default swaps to achieve a similar effect or to take an active long or short position with respect to the likelihood of a particular referenced obligation’s default. Credit default swaps on indices are instruments often used to attempt to protect investors owning bonds against default, but may also be used for speculative purposes.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate, sovereign or U.S. municipal issues as of period end are disclosed in the Notes to Schedules of Investments. They serve as an indicator of the current status of payment/performance risk and

represent the likelihood or risk of default for the reference entity. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/ performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

The maximum potential undiscounted amount of future payments that a Fund as a seller of protection could be required to make under a credit default swap agreement equals the notional amount of the agreement. Notional amounts of each individual credit default swap agreement outstanding as of period end for which a Fund is the seller of protection are disclosed in the Notes to Schedules of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by a Fund for the same referenced entity or entities.

Interest Rate Swap Agreements  Certain Funds are subject to interest rate risk exposure in the normal course of pursuing their investment objectives. If a Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, a Fund may enter into interest rate swap agreements. Interest rate swap agreements involve the exchange by a Fund with another party for their respective commitment to pay or receive interest on the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”, (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”, (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the buyer pays an upfront fee in consideration for the right to early terminate the swap transaction in whole, at zero cost and at a predetermined date and time prior to the maturity date, (v) spreadlocks, which allow the

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interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and a specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different segments of money markets.

Total Return Swap Agreements  Certain Funds may enter into total return swap agreements to gain or mitigate exposure to the underlying reference asset. Total return swap agreements involve commitments where single or multiple cash flows are exchanged based on the price of an underlying reference asset and on a fixed or variable interest rate. Total return swap agreements may involve commitments to pay interest in exchange for a market-linked return. One counterparty pays out the total return of a specific reference asset, which may include an underlying equity, index, or bond, and in return receives a fixed or variable rate. At the maturity date, a net cash flow is exchanged where the total return is equivalent to the return of the underlying reference less a financing rate, if any. As a receiver, a Fund would receive payments based on any positive total return and would owe payments in the event of a negative total return. As the payer, a Fund would owe payments on any net positive total return, and would receive payments in the event of a negative total return. A Fund’s use of a total return swap exposes the Fund to credit loss in the event of nonperformance by the swap counterparty. Risk may also arise from the unanticipated movements in value of exchange rates, interest rates, securities, or the index.

Asset Segregation  Certain of the transactions described above can be viewed as constituting a form of borrowing or financing transaction by a Fund. In such event, a Fund may but is not required to cover its commitment under such transactions by segregating or “earmarking” assets in accordance with procedures adopted by the Board, in which case such transactions will not be considered “senior securities” by the Fund. With respect to forwards, futures contracts, options and swaps that are contractually permitted or required to cash settle (i.e., where physical delivery of the underlying reference asset is not required), a Fund is permitted to segregate or earmark liquid assets equal to the Fund’s daily marked-to-market net obligation under the derivative instrument, if any, rather than the derivative’s full notional value. By segregating or earmarking liquid assets equal to only its net marked-to-market obligation under derivatives that are required to cash settle, a Fund will have the ability to employ leverage to a greater extent than if a Fund were to segregate or earmark liquid assets equal to the full notional value of the derivative.

7. PRINCIPAL RISKS

In the normal course of business, the Funds trade financial instruments and enter into financial transactions where risk of potential loss exists due to such things as changes in the market (market risk) or failure or

inability of the other party to a transaction to perform (credit and counterparty risk). See below for a detailed description of select principal risks. For a more comprehensive list of potential risks the Funds may be subject to, please see the Important Information About the Funds.

Market Risks  A Fund’s investments in financial derivatives and other financial instruments expose the Fund to various risks such as, but not limited to, interest rate, foreign currency, equity and commodity risks.

Interest rate risk is the risk that fixed income securities and other instruments held by a Fund will decline in value because of changes in interest rates. As nominal interest rates rise, the value of certain fixed income securities held by a Fund is likely to decrease. A nominal interest rate can be described as the sum of a real interest rate and an expected inflation rate. Interest rate changes can be sudden and unpredictable, and a Fund may lose money if these changes are not anticipated by Fund management. A Fund may not be able to hedge against changes in interest rates or may choose not to do so for cost or other reasons. In addition, any hedges may not work as intended.

Fixed income securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations. Duration is a measure used to determine the sensitivity of a security’s price to changes in interest rates that incorporates a security’s yield, coupon, final maturity and call features, among other characteristics. Duration is useful primarily as a measure of the sensitivity of a fixed income security’s market price to interest rate (i.e. yield) movements. All other things remaining equal, for each one percentage point increase in interest rates, the value of a portfolio of fixed income investments would generally be expected to decline by one percent for every year of the portfolio’s average duration above zero. For example, the value of a portfolio of fixed income securities with an average duration of three years would generally be expected to decline by approximately 3% if interest rates rose by one percentage point. Convexity is an additional measure used to understand a security’s interest rate sensitivity. Convexity measures the rate of change of duration in response to changes in interest rates and may be positive or negative Securities with negative convexity may experience greater losses during periods of rising interest rates, and accordingly Funds holding such securities may be subject to a greater risk of losses in periods of rising interest rates. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions). At present, the U.S. is experiencing historically low interest rates. This, combined with recent economic recovery, the Federal Reserve Board’s conclusion of its quantitative easing program, and recent increases in interest rates for the first time since 2006, could potentially increase the probability of an upward interest rate environment in the near future. During periods

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of very low or negative interest rates, a Fund may be unable to maintain positive returns. Changing interest rates, including rates that fall below zero, may have unpredictable effects on markets, may result in heightened market volatility and may detract from Fund performance to the extent a Fund is exposed to such interest rates. Rising interest rates may result in a decline in value of a Fund’s fixed-income investments and in periods of volatility. Further, while U.S. bond markets have steadily grown over the past three decades, dealer “market making” ability has remained relatively stagnant. As a result, dealer inventories of certain types of bonds and similar instruments, which provide a core indication of the ability of financial intermediaries to “make markets,” are at or near historic lows in relation to market size. Because market makers provide stability to a market through their intermediary services, the significant reduction in dealer inventories could potentially lead to decreased liquidity and increased volatility in the fixed income markets. Such issues may be exacerbated during periods of economic uncertainty. All of these factors, collectively and/or individually, could cause a Fund to lose value.

Foreign (non-U.S.) securities in this report are classified by the country of incorporation of a holding. In certain instances, a security’s country of incorporation may be different from its country of economic exposure. If a Fund invests directly in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, foreign (non-U.S.) currencies, or in financial derivatives that provide exposure to foreign (non-U.S.) currencies, it will be subject to the risk that those currencies will decline in value relative to the base currency of the Fund, or, in the case of hedging positions, that the Fund’s base currency will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates, intervention (or the failure to intervene) by U.S. or foreign governments, central banks or supranational entities such as the International Monetary Fund, or by the imposition of currency controls or other political developments in the United States or abroad. As a result, a Fund’s investments in foreign currency denominated securities may reduce the Fund’s returns.

The market values of a Fund’s investments may decline due to general market conditions which are not specifically related to a particular company or issuer, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment. They may also decline due to factors which affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities and equity related investments generally have greater market price volatility than fixed income securities, although under certain market conditions fixed income securities may have comparable or greater price volatility. Credit

ratings downgrades may also negatively affect securities held by a Fund. Even when markets perform well, there is no assurance that the investments held by a Fund will increase in value along with the broader market. In addition, market risk includes the risk that geopolitical events will disrupt the economy on a national or global level.

A Fund’s investments in commodity-linked financial derivative instruments may subject the Fund to greater market price volatility than investments in traditional securities. The value of commodity-linked financial derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments.

Credit and Counterparty Risks A Fund will be exposed to credit risk to parties with whom it trades and will also bear the risk of settlement default. A Fund seeks to minimize concentrations of credit risk by undertaking transactions with a large number of counterparties on recognized and reputable exchanges, where applicable. Over the counter (“OTC”) derivative transactions are subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally cleared derivative transactions might not be available for OTC derivative transactions. For derivatives traded on an exchange or through a central counterparty, credit risk resides with the Fund’s clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction. A Fund could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a financial derivatives contract, repurchase agreement or a loan of portfolio securities, is unable or unwilling to make timely principal and/or interest payments, or to otherwise honor its obligations. Securities are subject to varying degrees of credit risk, which are often reflected in credit ratings.

Similar to credit risk, a Fund may be exposed to counterparty risk, or the risk that an institution or other entity with which a Fund has unsettled or open transactions will default. PIMCO, as Manager, seeks to minimize counterparty risks to a Fund in a number of ways. Prior to entering into transactions with a new counterparty, the PIMCO Counterparty Risk Committee conducts an extensive credit review of such counterparty and must approve the use of such counterparty. Furthermore, pursuant to the terms of the underlying contract, to the extent that unpaid amounts owed to a Fund exceed a predetermined threshold, such counterparty is required to advance collateral to a Fund in the form of cash or securities equal in value to the unpaid amount owed to the Fund. A Fund may invest such collateral in securities or other instruments and will typically pay interest to the counterparty on the collateral received. If the unpaid amount owed to a Fund

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subsequently decreases, the Fund would be required to return to the counterparty all or a portion of the collateral previously advanced to the Fund. PIMCO’s attempts to minimize counterparty risk may, however, be unsuccessful.

All transactions in listed securities are settled/paid for upon delivery using approved counterparties. The risk of default is considered minimal, as delivery of securities sold is only made once a Fund has received payment. Payment is made on a purchase once the securities have been delivered by the counterparty. The trade will fail if either party fails to meet its obligation.

To the extent a Fund has a policy to limit the net amount owed to or to be received from a single counterparty under existing swap agreements, such limitation only applies to counterparties to over the counter swaps and does not apply to centrally cleared swaps where the counterparty is a central counterparty or derivatives clearing organization.

Master Netting Arrangements  The Funds may be subject to various netting arrangements with select counterparties (“Master Agreements”). Master Agreements govern the terms of certain transactions, and are intended to reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that is intended to improve legal certainty. Each type of Master Agreement governs certain types of transactions. Different types of transactions may be traded out of different legal entities or affiliates of a particular organization, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow a Fund to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single Master Agreement with a counterparty. For financial reporting purposes the Statements of Assets and Liabilities generally present derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.

Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under the Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Bills and U.S. dollar cash are generally the preferred forms of collateral, although other forms of AAA rated paper or sovereign securities may be used. Securities and cash pledged as collateral are reflected as assets on the Statements of Assets and Liabilities as either a component of Investments at value (securities) or Deposits with counterparty (cash).

Cash collateral received is typically not held in a segregated account and as such is reflected as a liability on the Statements of Assets and Liabilities as Deposits from counterparty. The market value of any securities received as collateral is not reflected as a component of NAV. A Fund’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.

Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase, and sale-buyback transactions between the Funds and select counterparties. Master Repo Agreements maintain provisions for, among other things, transaction initiation, income payments, events of default, and maintenance of collateral. The market value of transactions under the Master Repo Agreement, collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Schedules of Investments.

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern the considerations and factors surrounding the settlement of certain forward settling transactions, such as TBA securities, delayed-delivery or sale-buyback transactions by and between a Fund and select counterparties. The Master Forward Agreements maintain provisions for, among other things, transaction initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral. The market value of forward settling transactions, collateral pledged or received, and the net exposure by counterparty as of period end is disclosed in the Notes to Schedules of Investments.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivatives transactions require posting of initial margin as determined by each relevant clearing agency which is segregated at a broker account registered with the CFTC, or the applicable regulator. In the United States, counterparty risk may be reduced as creditors of a futures broker do not have a claim to Fund assets in the segregated account. Portability of exposure reduces risk to the Funds. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives unless the parties have agreed to a separate arrangement in respect of portfolio margining. The market value or accumulated unrealized appreciation (depreciation), initial margin posted, and any unsettled variation margin as of period end is disclosed in the Notes to Schedule of Investments.

International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern OTC financial derivative transactions entered into by a Fund and

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select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral posting and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. In limited circumstances, the ISDA Master Agreement may contain additional provisions that add counterparty protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level. These amounts, if any, may be segregated with a third-party custodian. The market value of OTC financial derivative instruments, collateral received or pledged, and net exposure by counterparty as of period end are disclosed in the Notes to Schedules of Investments.

8. FEES AND EXPENSES

(a) Management Fee  Pursuant to the Investment Management Agreement with PIMCO (the “Agreement”), and subject to the supervision of the Board, PIMCO is responsible for providing to each Fund investment guidance and policy direction in connection with the management of the Fund, including oral and written research, analysis, advice, and statistical and economic data and information. In addition, pursuant to the Agreement and subject to the general supervision of the Board, PIMCO, at its expense, provides or causes to be furnished most other supervisory and administrative services the Funds require, including but not limited to, expenses of most third-party service providers (e.g., audit, custodial, legal, transfer agency, printing) and other expenses, such as those associated with insurance, proxy solicitations and mailings for shareholder meetings, New York Stock Exchange listing and related fees, tax services, valuation services and other services the Funds require for their daily operations.

Pursuant to the Agreement, PIMCO receives an annual fee, payable monthly, at the annual rates shown in the table below:

Fund Name	Annual Rate
PCM Fund, Inc.		0.900%	(1)
PIMCO Global StocksPLUS® & Income Fund		1.105%	(2)
PIMCO Income Opportunity Fund		1.055%	(1)
PIMCO Strategic Income Fund, Inc.		0.955%	(3)
PIMCO Dynamic Credit and Mortgage Income Fund		1.150%	(4)
PIMCO Dynamic Income Fund		1.150%	(4)

⁽¹⁾  Management fees calculated based on the Fund’s average daily “total managed assets”. Total managed assets refer to the total assets of each Fund (including assets attributable to any reverse repurchase agreements, borrowings and preferred shares that may be outstanding) minus accrued liabilities (other than liabilities representing reverse repurchase agreements and borrowings).

⁽²⁾  Management fees calculated based on the Fund’s average daily “total managed assets”. Total managed assets refer to the total assets of each Fund (including assets attributable to any preferred shares and borrowings that may be outstanding) minus accrued liabilities (other than liabilities representing borrowings).

⁽³⁾  Management fees calculated based on the Fund’s average daily net asset value (including daily net assets attributable to any preferred shares of the Fund that may be outstanding).

⁽⁴⁾  Management fees calculated based on the Fund’s average daily “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).

(b) Fund Expenses  Each Fund bears other expenses, which may vary and affect the total level of expenses paid by shareholders, such as (i) salaries and other compensation or expenses, including travel expenses of any of the Fund’s executive officers and employees, if any, who are not officers, directors, shareholders, members, partners or employees of PIMCO or its subsidiaries or affiliates; (ii) taxes and governmental fees, if any, levied against the Fund; (iii) brokerage fees and commissions and other portfolio transaction expenses incurred by or for the Fund (including, without limitation, fees and expenses of outside legal counsel or third-party consultants retained in connection with reviewing, negotiating and structuring specialized loan and other investments made by the Fund, subject to specific or general authorization by the Fund’s Board); (iv) expenses of the Fund’s securities lending (if any), including any securities lending agent fees, as governed by a separate securities lending agreement; (v) costs, including interest expense, of borrowing money or engaging in other types of leverage financing, including, without limitation, through the use by the Fund of reverse repurchase agreements, tender option bonds, bank borrowings and credit facilities; (vi) costs, including dividend and/or interest expenses and other costs (including, without limitation, offering and related legal costs, fees to brokers, fees to auction agents, fees to transfer agents, fees to ratings agencies and fees to auditors associated with satisfying ratings agency requirements for preferred shares or other securities issued by the Fund and other related requirements in the Fund’s organizational documents) associated with the Fund’s issuance, offering, redemption and maintenance of preferred shares, commercial paper or other senior securities for the purpose of incurring leverage; (vii) fees and expenses of any underlying funds or other pooled investment vehicles in which the Fund invests; (viii) dividend and interest expenses on short positions taken by the Fund; (ix) fees and expenses, including travel expenses, and fees and expenses of legal counsel retained for their benefit, of Trustees who are not officers, employees, partners, shareholders or members of PIMCO or its subsidiaries or affiliates; (x) extraordinary expenses, including extraordinary legal expenses, that may arise, including expenses incurred in connection with litigation, proceedings, other claims, and the legal obligations of the Fund to indemnify its Trustees, officers, employees, shareholders, distributors, and agents with respect thereto; (xi) organizational and offering expenses of the Fund, including with respect to share offerings, such as rights offerings and shelf offerings, following the Fund’s initial offering, and expenses

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associated with tender offers and other share repurchases and redemptions; and (xii) expenses of the Fund which are capitalized in accordance with U.S. GAAP.

Each of the Trustees of the Funds who is not an “interested person” under Section 2(a)(19) of the Act, (the “Independent Trustees”) also serves as a trustee of a number of other closed-end funds for which PIMCO serves as investment manager (together with the Funds, the “PIMCO Closed-End Funds”), as well as PIMCO Flexible Credit Income Fund, a closed end management investment company managed by PIMCO that is operated as an “interval fund” (the “PIMCO-Managed Interval Fund”) PIMCO Managed Accounts Trust, an open-end investment company with multiple series for which PIMCO serves as investment adviser and administrator (“PMAT” and, together with the PIMCO Closed-End Funds and the PIMCO-Managed Interval Fund, the “PIMCO-Managed Funds”). In addition, each of the Independent Trustees also serves as a trustee of certain investment companies (together, the “Allianz-Managed Funds”), for which Allianz Global Investors Fund Management (“AGIFM”), an affiliate of PIMCO that served as the investment manager of the PIMCO Managed Funds prior to the close of business on September 5, 2014, serves as investment adviser.

Each Independent Trustee currently receives annual compensation of $225,000 for his or her service on the Boards of the PIMCO-Managed Funds, payable quarterly. The Independent Chairman of the Boards receives an additional $75,000 per year, payable quarterly. The Audit Oversight Committee Chairman receives an additional $50,000 annually, payable quarterly. Trustees are also reimbursed for meeting-related expenses.

Each Trustee’s compensation for his or her service as a Trustee on the Boards of the PIMCO Managed Funds and other costs in connection with joint meetings of such Funds are allocated among the PIMCO-Managed Funds, as applicable, on the basis of fixed percentages between PMAT and the PIMCO Closed-End Funds. Trustee compensation and other costs will then be further allocated pro rata among the individual PIMCO-Managed Funds within each grouping based on each such PIMCO-Managed Fund’s relative net assets.

9. RELATED PARTY TRANSACTIONS

The Manager is a related party. Fees payable to this party are disclosed in Note 8 and the accrued related party fee amounts are disclosed on the Statements of Assets and Liabilities.

Certain Funds are permitted to purchase or sell securities from or to certain related affiliated funds under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by the Funds from or

to another fund or portfolio that are, or could be, considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the Act. Further, as defined under the procedures, each transaction is effected at the current market price. During the period ended December 31, 2016, the Funds below engaged in purchases and sales of securities pursuant to Rule 17a-7 of the Act (amounts in thousands^†):

	Purchases		Sales
PCM Fund, Inc.	$	—	$	5,433
PIMCO Global StocksPLUS® & Income Fund		736		371
PIMCO Income Opportunity Fund		3,623		18,023
PIMCO Strategic Income Fund, Inc.		—		5,217
PIMCO Dynamic Credit and Mortgage Income Fund		27,360		314,572
PIMCO Dynamic Income Fund		4,525		103,294

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

10. GUARANTEES AND INDEMNIFICATIONS

Under the organizational documents of PIMCO Global StocksPLUS^® & Income Fund, PIMCO Income Opportunity Fund, PIMCO Dynamic Credit and Mortgage Income Fund and PIMCO Dynamic Income Fund each Trustee and officer is indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Funds. Under the organizational documents of PCM Fund, Inc., and PIMCO Strategic Income Fund, Inc., each Director and officer is indemnified to the fullest extent permitted by Maryland law and the Act. For PCM Fund, Inc., employees and agents of the Fund are also indemnified to the maximum extent permitted by Maryland Law and the Act. For PIMCO Strategic Income Fund, Inc., employees and agents of the Fund may be indemnified to the extent determined by the Board and subject to the limitations of the Act. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts.

11. PURCHASES AND SALES OF SECURITIES

The length of time a Fund has held a particular security is not generally a consideration in investment decisions. A change in the securities held by a Fund is known as “portfolio turnover.” Each Fund may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. High portfolio turnover involves correspondingly greater transaction costs to a Fund, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Such sales may also result in realization of taxable capital gains, including short-term capital gains

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(which are generally taxed at ordinary income tax rates). The transaction costs and tax effects associated with portfolio turnover may adversely affect a Fund’s performance. The portfolio turnover rates are reported in the Financial Highlights.

Purchases and sales of securities (excluding short-term investments) for the period ended December 31, 2016, as indicated below, were as follows (amounts in thousands^†):

	U.S. Government/Agency				All Other
Fund Name	Purchases		Sales		Purchases		Sales
PCM Fund, Inc.	$	0	$	0	$	24,004	$	7,927
PIMCO Global StocksPLUS® & Income Fund		0		107		17,854		10,623
PIMCO Income Opportunity Fund		0		400		98,437		73,128
PIMCO Strategic Income Fund, Inc.		101,037		0		60,800		23,552
PIMCO Dynamic Credit and Mortgage Income Fund		4,817		1,498		912,201		750,197
PIMCO Dynamic Income Fund		2,107		6,798		292,669		239,419

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

12. BASIS FOR CONSOLIDATION

PDILS I LLC and PCILS I LLC (each a “Subsidiary” and, collectively, the “Subsidiaries”), both Delaware LLC exempted companies, were formed as wholly owned subsidiaries acting as investment vehicles for PIMCO Dynamic Credit and Mortgage Income Fund and PIMCO Dynamic Income Fund (for purposes of this section, each a “Fund” and, collectively, the “Funds”), respectively, in order to effect certain investments consistent with each Fund’s objectives and policies in effect from time to time. PDILS I LLC and PCILS I LLC were formed on March 12, 2013 and March 7, 2013, respectively. PIMCO Dynamic Income Credit and Mortgage Fund’s and PIMCO Dynamic Income Fund’s investment portfolios have been consolidated and include the portfolio holdings of each Fund’s respective Subsidiary. Accordingly, the consolidated financial statements for each Fund include the accounts of each Fund’s respective subsidiary. All inter-company transactions and balances have been eliminated. This structure was established so that certain loans could be held by a separate legal entity from the Funds.

13. REGULATORY AND LITIGATION MATTERS

The Funds are not named as defendants in any material litigation or arbitration proceedings and are not aware of any material litigation or claim pending or threatened against them.

PIMCO, the investment manager of the PIMCO Total Return Active Exchange-Traded Fund (“BOND”), has entered into a settlement agreement with the SEC that relates to BOND.

The settlement relates to disclosures regarding BOND’s performance attribution during the first four months of its existence in 2012 and the valuation of 43 smaller-sized positions of non-agency mortgage-backed

securities using third-party vendor prices, as well as PIMCO’s policies and procedures related to these matters.

The settlement resolves the SEC’s investigation of BOND

The foregoing speaks only as of the date of this report.

14. FEDERAL INCOME TAX MATTERS

Each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.

The Funds may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.

In accordance with U.S. GAAP, the Manager has reviewed the Funds’ tax positions for all open tax years. As of December 31, 2016, the Funds have recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions they have taken or expect to take in future tax returns.

Each Fund files U.S. tax returns. While the statute of limitations remains open to examine the Funds’ U.S. tax returns filed for the fiscal years from 2013-2015, no examinations are in progress or anticipated at this time. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.

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Notes to Financial Statements (Cont.)

As of their last fiscal year ended June 30, 2016 the Funds had accumulated capital losses expiring in the following years (amounts in thousands). The Funds will resume capital gain distributions in the future to the extent gains are realized in excess of accumulated capital losses.

	Expiration of Accumulated Capital Losses
	06/30/2017		06/30/2018		06/30/2019
PCM Fund Inc.	$	13,751	$	1,419	$	0
PIMCO Global StocksPlus® & Income Fund		89,083		5,575		0
PIMCO Income Opportunity Fund		0		0		0
PIMCO Strategic Income Fund, Inc.		13,338		0		0
PIMCO Dynamic Credit and Mortgage Income Fund		0		0		0
PIMCO Dynamic Income Fund		0		0		0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

Under the Regulated Investment Company Modernization Act of 2010, a fund is permitted to carry forward any new capital losses for an unlimited period. Additionally, such capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.

As of their last fiscal year ended June 30, 2016, the Funds had the following post-effective capital losses with no expiration (amounts in thousands):

	Short-Term		Long-Term
PCM Fund Inc.	$	0	$	0
PIMCO Global StocksPlus® & Income Fund		42,063		0
PIMCO Income Opportunity Fund		0		0
PIMCO Strategic Income Fund, Inc.		37,613		504
PIMCO Dynamic Credit and Mortgage Income Fund		190,657		38,334
PIMCO Dynamic Income Fund		0		0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2016, the aggregate cost and the net unrealized appreciation (depreciation) of investments for federal income tax purposes are as follows (amounts in thousands):

Fund Name	Federal Tax Cost		Aggregate Gross Unrealized Appreciation		Aggregate Gross Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)(1)
PCM Fund, Inc.	$	190,949	$	13,517	$	(10,792	)	$	2,735
PIMCO Global StocksPLUS® & Income Fund		161,816		16,987		(10,329	)		6,658
PIMCO Income Opportunity Fund		555,423		49,165		(35,917	)		13,248
PIMCO Strategic Income Fund, Inc.		952,085		21,244		(18,509	)		2,735
PIMCO Dynamic Credit and Mortgage Income Fund		5,356,281		180,070		(325,410	)		(145,340	)
PIMCO Dynamic Income Fund		2,099,883		216,383		(98,797	)		117,586

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾ Primary differences, if any, between book and tax net unrealized appreciation (depreciation) are attributable to wash sale loss deferrals.

PIMCO Strategic Income Fund, Inc. (“RCS”) accounts for mortgage dollar rolls as financing transactions, such that the Fund treats the difference between the selling price and future purchase price on a mortgage dollar roll as interest income for U.S. federal income tax purposes. Such treatment determines RCS’s distributions relating thereto, and may increase the amount of distributions received by Fund shareholders that are taxed as ordinary income and cause shareholders to be taxed on distributions that effectively represent a return of the shareholder’s investment therein. The U.S. federal income tax rules governing the treatment of mortgage dollar roll transactions are complex, and the proper treatment of such transactions is unclear. If the Internal Revenue Service were to challenge or recharacterize RCS’s treatment of mortgage dollar rolls successfully, it would affect the amount, timing and character of distributions received by the Fund’s shareholders.

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15. SUBSEQUENT EVENTS

In preparing these financial statements, the Funds’ management has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.

On January 3, 2017, the following distributions were declared to common shareholders payable February 1, 2017 to shareholders of record on January 13, 2017:

PCM Fund, Inc.	$	0.080000 per common share
PIMCO Global StocksPLUS® & Income Fund	$	0.146680 per common share
PIMCO Income Opportunity Fund	$	0.190000 per common share
PIMCO Strategic Income Fund, Inc.	$	0.080000 per common share
PIMCO Dynamic Credit and Mortgage Income Fund	$	0.164063 per common share
PIMCO Dynamic Income Fund	$	0.220500 per common share

On February 1, 2017, the following distributions were declared to common shareholders payable March 1, 2017 to shareholders of record on February 13, 2017:

PCM Fund, Inc.	$	0.080000 per common share
PIMCO Global StocksPLUS® & Income Fund	$	0.146680 per common share
PIMCO Income Opportunity Fund	$	0.190000 per common share
PIMCO Strategic Income Fund, Inc.	$	0.072000 per common share
PIMCO Dynamic Credit and Mortgage Income Fund	$	0.164063 per common share
PIMCO Dynamic Income Fund	$	0.220500 per common share

There were no other subsequent events identified that require recognition or disclosure.

SEMIANNUAL REPORT DECEMBER 31, 2016 111

Glossary: (abbreviations that may be used in the preceding statements)

(Unaudited)

Counterparty Abbreviations:
AZD	Australia and New Zealand Banking Group	GLM	Goldman Sachs Bank USA	PAR	Banque Paribas, London
BCY	Barclays Capital, Inc.	GSC	Goldman Sachs & Co.	RBC	Royal Bank of Canada
BOA	Bank of America N.A.	GST	Goldman Sachs International	RCE	Royal Bank of Canada Europe Limited
BOS	Banc of America Securities LLC	HUS	HSBC Bank USA N.A.	RDR	RBC Capital Markets
BPG	BNP Paribas Securities Corp.	IND	Crédit Agricole Corporate and Investment Bank S.A.	RTA	Bank of New York Mellon Corp.
BPS	BNP Paribas S.A.	JML	JP Morgan Securities Plc	RYL	Royal Bank of Scotland Group PLC
BRC	Barclays Bank PLC	JPM	JPMorgan Chase Bank N.A.	SAL	Citigroup Global Markets, Inc.
CBK	Citibank N.A.	JPS	JPMorgan Securities, Inc.	SBI	Citigroup Global Markets Ltd.
DBL	Deutsche Bank AG London	MSB	Morgan Stanley Bank, N.A	SCX	Standard Chartered Bank
DEU	Deutsche Bank Securities, Inc.	MSC	Morgan Stanley & Co., Inc.	SOG	Societe Generale
DUB	Deutsche Bank AG	MYC	Morgan Stanley Capital Services, Inc.	SSB	State Street Bank and Trust Co.
FAR	Wells Fargo Bank National Association	MYI	Morgan Stanley & Co. International PLC	TOR	Toronto Dominion Bank
FBF	Credit Suisse International	NAB	National Australia Bank Ltd.	UAG	UBS AG Stamford
FOB	Credit Suisse Securities (USA) LLC	NOM	Nomura Securities International Inc.	UBS	UBS Securities LLC
Currency Abbreviations:
AUD	Australian Dollar	DKK	Danish Krone	JPY	Japanese Yen
BRL	Brazilian Real	EUR	Euro	SEK	Swedish Krona
CAD	Canadian Dollar	GBP	British Pound	USD (or $)	United States Dollar
CHF	Swiss Franc	HKD	Hong Kong Dollar
Exchange Abbreviations:
CME	Chicago Mercantile Exchange	OTC	Over the Counter
Index/Spread Abbreviations:
ABX.HE	Asset-Backed Securities Index - Home Equity	NDDUEAFE	MSCI EAFE Index	S&P 500	Standard & Poor’s 500 Index
CDX.HY	Credit Derivatives Index - High Yield	PENAAA	Penultimate AAA Sub-Index
Other Abbreviations:
ABS	Asset-Backed Security	CDI	Brazil Interbank Deposit Rate	LIBOR	London Interbank Offered Rate
ALT	Alternate Loan Trust	CDO	Collateralized Debt Obligation	PIK	Payment-in-Kind
BBR	Bank Bill Rate	CLO	Collateralized Loan Obligation	REMIC	Real Estate Mortgage Investment Conduit
BBSW	Bank Bill Swap Reference Rate	JSC	Joint Stock Company	SP - ADR	Sponsored American Depositary Receipt
CBO	Collateralized Bond Obligation

112 PIMCO CLOSED-END FUNDS

Investment Strategy Updates

(Unaudited)

Effective July 29, 2016, PIMCO Dynamic Credit Income Fund changed its name to PIMCO Dynamic Credit and Mortgage Income Fund (for purposes of this section, the “Fund”). In connection with the name change, the Fund rescinded the following non-fundamental investment policy (the “Former Policy”):

The Fund will normally invest at least 80% of its net assets (plus any borrowings for investment purposes) in a portfolio of debt instruments of varying maturities (the “80% policy”).

For purposes of the 80% policy, debt instruments may include, without limitation, bonds, debentures, notes, and other debt securities of U.S. and foreign (non-U.S.) corporate and other issuers, including commercial paper; mortgage-related and any other type of asset-backed securities issued on a public or private basis; U.S. Government securities; obligations of foreign governments or their sub-divisions, agencies and government sponsored enterprises and obligations of international agencies and supranational entities; municipal securities and other debt securities issued by states or local governments and their agencies, authorities and other government-sponsored enterprises, including taxable municipal securities (such as Build America Bonds); payment-in-kind securities; zero-coupon bonds; inflation-indexed bonds issued by both governments and corporations; structured notes, including hybrid or indexed securities; catastrophe bonds and other event-linked bonds; credit-linked notes; structured credit products; bank loans (including, among others, senior loans, delayed funding loans, revolving credit facilities and loan participations and assignments); preferred securities; convertible debt securities (i.e., debt securities that may be converted at either a stated price or stated rate into underlying shares of common stock), including synthetic convertible debt securities (i.e., instruments created through a combination of separate securities that possess the two principal characteristics of a traditional convertible security, such as an income-producing security and the right to acquire an equity security); and bank certificates of deposit, fixed time deposits and bankers’ acceptances. The rate of interest on an income-producing security may be fixed, floating or variable. At any given time and from time to time substantially all of the Fund’s portfolio may consist of below investment grade securities. The Fund may invest in debt securities of stressed issuers. The Fund’s investments in derivatives and other synthetic instruments that have economic characteristics similar to debt instruments will be counted toward satisfaction of this 80% policy.

The Former Policy was replaced in its entirety with the following new non-fundamental investment policy (the “New Policy”):

The Fund will normally invest at least 80% of its net assets (plus any borrowings for investment purposes) in a portfolio of mortgage-related securities and other debt instruments of varying maturities (the “80% policy”). For purposes of the 80% policy, mortgage-related securities

may include, without limitation, mortgage pass-through securities, collateralized mortgage obligations (“CMOs”), commercial or residential mortgage-backed securities, mortgage dollar rolls, CMO residuals, stripped mortgage-backed securities (“SMBSs”) and other securities that directly or indirectly represent a participation in, or are secured by and payable from, mortgage loans on real property.

For purposes of the 80% policy, other debt instruments may include, without limitation, bonds, debentures, notes, and other debt securities of U.S. and foreign (non-U.S.) corporate and other issuers, including commercial paper; asset-backed securities issued on a public or private basis; U.S. Government securities; obligations of foreign governments or their sub-divisions, agencies and government sponsored enterprises and obligations of international agencies and supranational entities; municipal securities and other debt securities issued by states or local governments and their agencies, authorities and other government-sponsored enterprises, including taxable municipal securities (such as Build America Bonds); payment-in-kind securities; zero-coupon bonds; inflation-indexed bonds issued by both governments and corporations; structured notes, including hybrid or indexed securities; catastrophe bonds and other event-linked bonds; credit-linked notes; structured credit products; bank loans (including, among others, senior loans, delayed funding loans, revolving credit facilities and loan participations and assignments); preferred securities; convertible debt securities (i.e., debt securities that may be converted at either a stated price or stated rate into underlying shares of common stock), including synthetic convertible debt securities (i.e., instruments created through a combination of separate securities that possess the two principal characteristics of a traditional convertible security, such as an income-producing security and the right to acquire an equity security); and bank certificates of deposit, fixed time deposits and bankers’ acceptances. The rate of interest on an income-producing security may be fixed, floating or variable. At any given time and from time to time substantially all of the Fund’s portfolio may consist of below investment grade securities. The Fund may invest in debt securities of stressed issuers. The Fund’s investments in derivatives and other synthetic instruments that have economic characteristics similar to mortgage-related securities or other debt instruments will be counted toward satisfaction of this 80% policy.

The New Policy became effective on July 29, 2016 and may only be changed by the Board of Trustees of the Fund after providing at least 60 days’ written notice to the Fund’s shareholders pursuant to Rule 35d-1 under the Investment Company Act of 1940, as amended.

The following risks are associated with the policies described above:

To the extent that the Fund has increased exposure to mortgage-related securities, the Fund may be exposed to increased risks associated with such asset classes.

SEMIANNUAL REPORT DECEMBER 31, 2016 113

General Information

Investment Manager

Pacific Investment Management Company LLC

1633 Broadway

New York, NY 10019

Custodian

State Street Bank and Trust Company

801 Pennsylvania Avenue

Kansas City, MO 64105

Transfer Agent, Dividend Paying Agent and Registrar

American Stock Transfer & Trust Company, LLC

6201 15th Avenue

Brooklyn, NY 11219

Legal Counsel

Ropes & Gray LLP

Prudential Tower

800 Boylston Street

Boston, MA 02199

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

1100 Walnut Street, Suite 1300

Kansas City, MO 64106

This report is submitted for the general information of the shareholders of PCM Fund, Inc., PIMCO Global StocksPLUS^® & Income Fund, PIMCO Income Opportunity Fund, PIMCO Strategic Income Fund, Inc., PIMCO Dynamic Credit and Mortgage Income Fund and PIMCO Dynamic Income Fund.

CEF4010SAR_123116

Item 2. Code of Ethics.

The information required by this Item 2 is only required in an annual report on this Form N-CSR.

Item 3. Audit Committee Financial Expert.

The information required by this Item 3 is only required in an annual report on this Form N-CSR.

Item 4. Principal Accountant Fees and Services.

The information required by this Item 4 is only required in an annual report on this Form N-CSR.

Item 5. Audit Committee of Listed Registrants.

The information required by this Item 5 is only required in an annual report on this Form N-CSR.

Item 6. Schedule of Investments.

The Schedule of Investments is included as part of the reports to shareholders under Item 1.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

The information required by this Item 7 is only required in an annual report on this Form N-CSR.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

None.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board of Trustees since the Fund last provided disclosure in response to this item.

Item 11. Controls and Procedures.

(a) The principal executive officer and principal financial & accounting officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the 1940 Act) provide reasonable assurances that material information relating to the Registrant is made known to them by appropriate persons based on their evaluation of these controls and procedures as of a date within 90 days of the filing of this report.

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1)	Exhibit 99.CODE—Code of Ethics is not applicable for semiannual reports.
(a)(2)	Exhibit 99.CERT—Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
(b)	Exhibit 99.906CERT—Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

PIMCO Global StocksPlus® & Income Fund
By:	/s/    PETER G. STRELOW
	Peter G. Strelow
	President (Principal Executive Officer)
Date:	February 28, 2017

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/    PETER G. STRELOW
	Peter G. Strelow
	President (Principal Executive Officer)
Date:	February 28, 2017
By:	/s/    WILLIAM G. GALIPEAU
	William G. Galipeau
	Treasurer (Principal Financial & Accounting Officer)
Date:	February 28, 2017

EX-99.(A)(2)

Exhibit 99.CERT

Certification Under Rule 30a-2(a)

CERTIFICATION

I, Peter G. Strelow, certify that:

1.	I have reviewed this report on Form N-CSR of PIMCO Global StocksPlus® & Income Fund;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
	d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	February 28, 2017
Signature:	/s/ Peter G. Strelow
Title:	President (Principal Executive Officer)

Exhibit 99.CERT

Certification Under Rule 30a-2(a)

CERTIFICATION

I, William G. Galipeau, certify that:

1.	I have reviewed this report on Form N-CSR of PIMCO Global StocksPlus® & Income Fund;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
	d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	February 28, 2017
Signature:	/s/ William G. Galipeau
Title:	Treasurer (Principal Financial & Accounting Officer)

EX-99.(B)

Exhibit 99.906CERT

Certification Under Rule 30a-2(b)

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

(as adopted pursuant to Section 906 of the Sarbanes-Oxley Act)

In connection with the Report on Form N-CSR to which this certification is furnished as an exhibit (the “Report”), the undersigned officers of PIMCO Global StocksPlus® & Income Fund (the “Registrant”) each certify that to his knowledge:

1. The Report on Form N-CSR fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report on Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

By:	/s/ Peter G. Strelow	By:	/s/ William G. Galipeau
Name:	Peter G. Strelow	Name:	William G. Galipeau
Title:	President (Principal Executive Officer)	Title:	Treasurer (Principal Financial & Accounting Officer)
Date:	February 28, 2017	Date:	February 28, 2017

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission (the “Commission”) or its staff upon request.

This certification is being furnished to the Commission solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Reports.