Core Viewpoint - PIMCO has declared a supplemental year-end distribution for its closed-end fund, which is intended to meet federal excise tax distribution requirements for 2025, with total distributions being taxable to shareholders in that year [1]. Distribution Details - The supplemental distribution is payable on January 13, 2026, to shareholders of record on December 29, 2025, with an ex-dividend date also on December 29, 2025 [1]. - The PIMCO Dynamic Income Strategy Fund (PDX) will distribute a total of $2.970000 per share, which includes $1.210000 in short-term capital gains and $1.760000 in long-term capital gains [2]. Tax Implications - Distributions may include ordinary income, net capital gains, and/or returns of capital, with returns of capital not being taxable but reducing a shareholder's tax basis in their shares [2]. - The Fund will notify shareholders of the estimated composition of distributions through a Section 19 Notice if a portion is derived from sources other than net investment income [3]. Investment Strategies - The Fund may employ various investment strategies, including derivatives, to generate current distributable income, which could lead to declines in net asset value (NAV) [5]. - The Fund's investment strategies may generate ordinary income sufficient to support monthly distributions, even during periods of net asset decline due to adverse market conditions [5]. Market Trading and Risks - The Fund's shares trade on the New York Stock Exchange and may fluctuate in price, potentially trading at a discount to their NAV [6]. - Closed-end funds like PIMCO's may carry various risks, including market, interest rate, and credit risks, which can affect the value of investments [13]. Fund Structure and Termination - The Fund is set to terminate on or about January 29, 2031, unless certain conditions are met, such as a tender offer to purchase all outstanding shares [11]. - During the Wind-Down Period, which begins one year before the termination date, the Fund may liquidate its portfolio, potentially leading to decreased distributions and capital losses [12].