PIMCO Income Strategy Fund II (PFN)
NYSE NYSE Primary 
PFN: Solid Choice For Investors Seeking Capital Preservation (Rating Upgrade)
PIMCO Income Strategy Fund II is upgraded to a Buy, offering an 11.3% yield and consistent income for income-focused investors. PFN's diversified portfolio, moderate leverage, and strong net investment income support stable distributions and capital preservation. Despite higher interest rates and a slight premium to NAV, PFN's earnings cover most distributions, reducing reliance on realized gains.
PFN: Long-Dated Debt And Floating-Rate Exposure Could Prove Problematic
PFN offers an attractive 11.4% yield, slightly above peer median, but not the highest among multi-sector bond funds. The fund's income sustainability is reasonable, with distributions covered by net investment income plus realized gains, but future income may decline if rates fall. Significant exposure to floating-rate and long-dated bonds poses risks if the Fed cuts rates or if U.S. debt monetization leads to negative real returns.
PFN Provides Investors With A Diversified Portfolio Of International Bond Issuances
PIMCO Income Strategy Fund II offers leveraged exposure to a diversified portfolio of high-yield and investment-grade debt, with a focus on 3-5 year maturities. The fund's distribution yield is attractive at 11.44%, but payouts have been stagnant since 2015. PFN carries notable risks due to its high-yield focus, exposure to economic uncertainty, and sensitivity to interest rate changes and credit quality.
PFN: Suppressed By Elevated Interest Rate Environment
PFN offers a high 11.9% yield and broad debt diversification, appealing to income-focused investors during market volatility. Current high interest rates suppress PFN's price and NAV, with no near-term rate cuts likely, limiting upside potential. Earnings have been inconsistent, raising concerns about the sustainability of PFN's generous dividend and the risk of future cuts.
PFN: Gained Our Respect Via The Recent Portfolio Actions (Rating Upgrade)
PFN has significantly reduced its leverage from 23% to 7.7%, positioning itself conservatively ahead of a potential recession. The fund has shifted its portfolio toward mortgages, treasuries, and emerging market bonds, reducing high yield exposure to only 19%. PFN's conservative stance and strategic asset allocation aim to limit drawdowns and maintain a premium to NAV during market downturns.
PFN: Likely To Suffer Declining NII, But Still Trading At A Premium
The PIMCO Income Strategy Fund II offers a high yield of 11.63%, though it lags behind the peer median yield of 11.95%. Despite the recent bond market weakness, the fund managed a 1.54% total return since October due to its high distributions, outperforming several bond indices. The fund's exposure to floating-rate securities will almost certainly lead to falling net investment income should the Fed and ECB continue to cut rates as projected.
PFN: A Good Bond Fund If Bonds Are Even Desired In Your Portfolio
The PIMCO Income Strategy Fund II offers a high yield of 11.46%, outperforming domestic bond indices but lagging peer closed-end funds. Despite recent strong performance, the fund's future performance may be challenged if developed market central banks are forced to take greater measures to control rates. The fund employs leverage to boost returns but maintains a reasonable level of risk, with leverage at 15.55% of its portfolio.
PFN: Making Intelligent Moves With Its Portfolio, But Doesn't Deserve A Premium
PIMCO Income Strategy Fund II offers a high yield of 11.98%, above the median for similar funds. The PFN closed-end fund has underperformed the domestic bond indices over the past few weeks, as well as over longer periods of time. The fund is positioning itself for potential interest rate cuts, but its premium valuation may not be justified given its historical performance.
Foundations Investment Advisors LLC Invests $77,000 in PIMCO Income Strategy Fund II (NYSE:PFN)
Foundations Investment Advisors LLC purchased a new position in PIMCO Income Strategy Fund II (NYSE:PFN – Free Report) in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 10,281 shares of the financial services provider’s stock, valued at approximately $77,000. Other institutional investors have also recently added to or reduced their stakes in the company. TCG Advisory Services LLC increased its position in shares of PIMCO Income Strategy Fund II by 1.8% in the 4th quarter. TCG Advisory Services LLC now owns 99,659 shares of the financial services provider’s stock worth $721,000 after purchasing an additional 1,752 shares during the last quarter. Consolidated Portfolio Review Corp increased its holdings in PIMCO Income Strategy Fund II by 0.8% in the third quarter. Consolidated Portfolio Review Corp now owns 366,405 shares of the financial services provider’s stock valued at $2,415,000 after buying an additional 2,805 shares during the last quarter. Certified Advisory Corp lifted its holdings in PIMCO Income Strategy Fund II by 3.2% during the 3rd quarter. Certified Advisory Corp now owns 126,989 shares of the financial services provider’s stock worth $837,000 after buying an additional 3,963 shares during the last quarter. Koshinski Asset Management Inc. increased its holdings in shares of PIMCO Income Strategy Fund II by 50.5% in the 4th quarter. Koshinski Asset Management Inc. now owns 17,642 shares of the financial services provider’s stock valued at $128,000 after acquiring an additional 5,921 shares during the last quarter. Finally, CoreCap Advisors LLC raised its position in shares of PIMCO Income Strategy Fund II by 7.5% during the 4th quarter. CoreCap Advisors LLC now owns 86,305 shares of the financial services provider’s stock valued at $624,000 after acquiring an additional 5,995 shares in the last quarter. PIMCO Income Strategy Fund II Price Performance PIMCO Income Strategy Fund II stock opened at $7.35 on Monday. PIMCO Income Strategy Fund II has a 12 month low of $5.93 and a 12 month high of $7.58. The company has a fifty day moving average price of $7.34 and a two-hundred day moving average price of $7.25. PIMCO Income Strategy Fund II Increases Dividend The firm also recently disclosed a monthly dividend, which will be paid on Monday, June 3rd. Investors of record on Monday, May 13th will be paid a dividend of $0.072 per share. This is a positive change from PIMCO Income Strategy Fund II’s previous monthly dividend of $0.07. The ex-dividend date of this dividend is Friday, May 10th. This represents a $0.86 annualized dividend and a yield of 11.76%. PIMCO Income Strategy Fund II Company Profile (Free Report) PIMCO Income Strategy Fund II is a closed-ended fixed income mutual fund launched and managed by Allianz Global Investors Fund Management LLC. It is co-managed by Pacific Investment Management Company LLC. The fund invests in the fixed income markets of the United States. It invests in securities of companies operating across the diversified sectors.
