Edgar Filing: PIMCO STRATEGIC INCOME FUND, INC

PIMCO Strategic Income Fund, Inc.

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: 811-08216

PIMCO Strategic Income Fund, Inc.

(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: June 30, 2015

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).

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Your Global Investment Authority

PIMCO Closed-End Funds

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Annual Report

June 30, 2015

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PCM Fund, Inc.

PIMCO Global StocksPLUS^® & Income Fund

PIMCO Income Opportunity Fund

PIMCO Strategic Income Fund, Inc.

PIMCO Dynamic Credit Income Fund

PIMCO Dynamic Income Fund

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Table of Contents



			Page

Letter from the Chairman of the Board & President				2
Important Information About the Funds				4
Financial Highlights				14
Statements of Assets and Liabilities				16
Consolidated Statements of Assets and Liabilities				17
Statements of Operations				18
Consolidated Statements of Operations				20
Statements of Changes in Net Assets				21
Consolidated Statements of Changes in Net Assets				23
Statements of Cash Flows				24
Consolidated Statements of Cash Flows				26
Notes to Financial Statements				92
Report of Independent Registered Public Accounting Firm				114
Glossary				115
Federal Income Tax Information				116
Shareholder Meeting Results				117
Investment Strategy Updates				119
Dividend Reinvestment Plan				120
Management of the Funds				122
Matters Relating to the Trustees’/Directors’ Consideration of the Annual Renewal of the Investment Management Agreement				125
Privacy Policy				132

Fund	Fund Summary		Schedule of Investments

PCM Fund, Inc.		8		27
PIMCO Global StocksPLUS^® & Income Fund		9		35
PIMCO Income Opportunity Fund		10		46
PIMCO Strategic Income Fund, Inc.		11		57
PIMCO Dynamic Credit Income Fund		12		66
PIMCO Dynamic Income Fund		13		81

Letter from the Chairman of the Board & President

Dear Shareholder:

The financial markets experienced periods of volatility starting from the fourth quarter of 2014 through the second quarter of 2015.¹ Investor sentiment was challenged at times given mixed economic data, uncertainties surrounding future global monetary policy, geopolitical issues and, most recently, the debt crisis in Greece.

For the periods ended June 30, 2015

After expanding in the fourth quarter of 2014, the U.S. economy hit a soft patch in the first quarter of 2015. 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 2.2% annual pace during the fourth quarter of 2014. According to the Commerce Department, GDP then moderated at an annual pace of 0.6% for the first quarter of 2015. This was attributed to contractions in net exports, nonresidential fixed investment and state and local government spending. In addition, consumer spending decelerated, as it grew a modest 1.8% during the first quarter of 2015 versus 4.4% for the fourth quarter of 2014. However, this appeared to be a temporary setback due to colder than usual weather and labor disputes at West Coast ports, as the Commerce Department’s initial estimate showed that GDP — released after the reporting periods had ended — grew at an annual pace of 2.3% for the second quarter of 2015.

Federal Reserve (“Fed”) monetary policy remained accommodative. However, the central bank appeared to be moving closer to raising interest rates for the first time since 2006. As expected, following its meeting in October 2014, the Fed announced that it had concluded its asset purchase program. Then, at its March 2015 meeting, the Fed eliminated the word “patient” from its official statement regarding when it may start raising rates. Finally, at its meeting in June, the Fed said that it “…currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run.”

Economic growth outside the U.S. was mixed over the past few quarters. Anemic growth and concerns of deflation in the eurozone caused the European Central Bank (“ECB”) to announce that beginning in March 2015, it would start a €60 billion-a-month bond-buying program that is expected to run until September 2016, or longer if needed to achieve an inflation rate consistent with the ECB’s longer-term target. The ECB announcement and a still-benign U.S. rates environment were supportive for emerging market asset prices initially, although by the end of the second quarter of 2015, riskier asset classes succumbed to pressures from slower economic growth, geopolitical events, increased uncertainty over the resolution of the Greek crisis and higher volatility in commodity markets.

Outlook

PIMCO’s baseline view is that the U.S. is on track for solid growth in the range of 2.5% to 3% in 2015. This outlook reflects the firm’s expectation for robust consumption growth, supported by a strengthening labor market and a boost to real income from low commodity prices. However, against this positive outlook for consumption, PIMCO is weighing the potential negatives of sluggish export growth held back by the stronger U.S. dollar, as well as the likelihood of reduced capital expenditures due to a slowdown in investment in the energy sector. While PIMCO believes that headline inflation may briefly turn negative due to the year-over-year decline in oil prices, the firm expects core inflation to bottom out near current levels and to rebound later in 2015. These conditions should allow the Fed to begin the process of normalizing short-term interest rates later this year. That said, in PIMCO’s view, this interest rate hike cycle will differ from previous cycles both in terms of pace — slower — and in terms of the destination — lower.

¹ Please note that each Fund’s fiscal year end was recently changed to June 30, 2015; therefore, the length of each Fund’s reporting period will differ depending on its former fiscal year end. Please see “Notes to Financial Statements” for further detail.


2		PIMCO CLOSED-END FUNDS

Overseas, PIMCO expects lower oil prices, a weak euro and the ECB’s quantitative easing program to be tailwinds for the eurozone economy, with GDP growth around 1.5% over the next 12 months. The firm believes that inflation in the eurozone will increase to 1% or so in 2015, after testing negative levels in the fourth quarter of 2014 and the first quarter of 2015. As the Fed’s interest rate tightening cycle moves closer, economic growth across emerging economies may face headwinds. PIMCO’s growth forecast for the “BRIM” economies (Brazil, Russia, India and Mexico) ranges from 1.5% to 2.5%. Country growth projections are highly varied, depending on initial economic conditions, commodity reliance and sensitivity to Fed and U.S. dollar moves. Against this backdrop, PIMCO believes emerging market countries with strong balance sheets should provide attractive investment opportunities, anchored by relatively high yields and supported by a low probability of meaningful reduction in creditworthiness.

In the following pages of this PIMCO Closed-End Funds Annual Report, please find specific details regarding investment performance and a discussion of factors that most affected the Funds’ performance over the periods ended June 30, 2015.

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.

We remain dedicated to serving your investment needs.

Sincerely,





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


		ANNUAL REPORT		JUNE 30, 2015		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. 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. 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.

For purposes of applying a Fund’s investment policies and restrictions, swap agreements are generally valued by the 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 Fund 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 the Fund’s other investment policies and restrictions. For example, a Fund may value credit default swaps at full exposure value for purposes of the Fund’s credit quality guidelines (if any) because such value reflects the 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.

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.


4		PIMCO CLOSED-END FUNDS

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 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


		ANNUAL REPORT		JUNE 30, 2015		5

Important Information About the Funds (Cont.)

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 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.

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.

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,


6		PIMCO CLOSED-END FUNDS

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 measure 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 of each Fund:


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

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.

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.

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.


		ANNUAL REPORT		JUNE 30, 2015		7

PCM Fund, Inc.




		Symbol on NYSE - PCM

Allocation Breakdown^†


Mortgage-Backed Securities			48.0%
Asset-Backed Securities			24.7%
Corporate Bonds & Notes			18.9%
Bank Loan Obligations			3.8%
Short-Term Instruments			2.8%
Other			1.8%

^†

% of Investments, at value as of 06/30/15

Fund Information (as of June 30, 2015)⁽¹⁾


Market Price			$10.05
NAV			$10.68
Premium/(Discount) to NAV			-5.90%
Market Price Distribution Yield⁽²⁾			9.55%
NAV Distribution Yield⁽²⁾			8.99%
Regulatory Leverage Ratio⁽³⁾			42%


Average Annual Total Return⁽¹⁾ for the period ended June 30, 2015
	1 Year		5 Year		10 Year		Commencement of Operations (09/02/93)
Market Price		-9.62%		11.04%		7.57%		8.26%
NAV		3.89%		14.17%		10.04%		9.19%

All Fund returns are net of fees and expenses.

The average annual total returns shown above have been restated from previous reports to shareholders to align with the Fund’s change from a December 31 to a June 30 fiscal year end. For the period January 1, 2015 through June 30, 2015, the Fund’s total return was -1.28% and 4.20% on a market price and NAV basis, respectively.

⁽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 regulatory leverage outstanding, as a percentage of total managed assets. Regulatory leverage may include preferred shares, tender option bond transactions, reverse repurchase agreements, and other borrowings (collectively “Regulatory Leverage”). Total managed assets refer to total assets (including assets attributable to Regulatory Leverage that may be outstanding) minus accrued liabilities (other than liabilities representing Regulatory Leverage).

Investment Objective

PCM’s primary investment objective is to achieve high current income. Capital gains from the disposition of investments are a secondary objective of the Fund.

Portfolio Insights

For the period from January 1, 2015 through June 30, 2015, the Fund’s allocation to non-agency mortgage-backed securities was a major contributor to performance, as the sector continued to benefit from an improving U.S. housing market.

The Fund’s allocation to high yield corporate bonds contributed substantially to results. In particular, the Fund’s holdings of energy, media, pipelines and utility bonds were beneficial to performance. However, negative security selection in the technology and manufacturing sectors mitigated some of these gains.

The Fund’s allocation to commercial mortgage-backed securities significantly contributed to performance, supported by attractive yields and positive security selection.

The Fund’s exposure to U.S. interest rates was beneficial to performance, supported mainly by an attractive yield.


8		PIMCO CLOSED-END FUNDS

PIMCO Global StocksPLUS^® & Income Fund




		Symbol on NYSE - PGP

Allocation Breakdown^†


Mortgage-Backed Securities			44.2%
Corporate Bonds & Notes			28.8%
Short-Term Instruments			14.6%
Asset-Backed Securities			6.1%
Bank Loan Obligations			2.3%
Other			4.0%

^†

% of Investments, at value as of 06/30/15

Fund Information (as of June 30, 2015)⁽¹⁾


Market Price			$16.92
NAV			$12.88
Premium/(Discount) to NAV			31.37%
Market Price Distribution Yield⁽²⁾			13.00%
NAV Distribution Yield⁽²⁾			17.08%
Regulatory Leverage Ratio⁽³⁾			34%


Average Annual Total Return⁽¹⁾ for the period ended June 30, 2015
	1 Year		5 Year		10 Year		Commencement of Operations (05/31/05)
Market Price		-27.19%		9.17%		11.02%		10.91%
NAV		0.73%		20.74%		12.77%		12.72%

All Fund returns are net of fees and expenses.

The average annual total returns shown above have been restated from previous reports to shareholders to align with the Fund’s change from a March 31 to a June 30 fiscal year end. For the period April 1, 2015 through June 30, 2015, the Fund’s total return was -21.82% and 4.80% on a market price and NAV basis, respectively.

⁽¹⁾

⁽²⁾

⁽³⁾

Investment Objective

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.

Portfolio Insights

For the period from April 1, 2015 through June 30, 2015, the Fund’s exposures to the S&P 500 Index and MSCI EAFE Index, through the use of equity index derivatives, contributed to returns.

The Fund benefited from earning a higher yield on underlying investments than the money market financing rate cost embedded within the S&P 500 and MSCI EAFE Index derivatives, through which the Fund achieves equity exposure.

Holdings of non-agency mortgage-backed securities substantially added to returns as they appreciated in price. The sector continued to benefit from an improving U.S. housing market.

Strategies designed to benefit from rising intermediate interest rates contributed substantially to performance. Intermediate rates increased sharply on renewed optimism regarding U.S. economic outlook.

A defensive option strategy, involving writing at-the-money calls and purchasing out-of-the-money puts on S&P 500 futures contracts was beneficial to performance as the written calls expired out-of-the-money.

An allocation to high yield corporate bonds modestly added to performance despite certain sectors, such as manufacturing and technology, posting negative returns.

There were no material detractors from results during the period.


		ANNUAL REPORT		JUNE 30, 2015		9

PIMCO Income Opportunity Fund




		Symbol on NYSE - PKO

Allocation Breakdown^†


Corporate Bonds & Notes			30.4%
Asset-Backed Securities			28.6%
Mortgage-Backed Securities			27.5%
Short-Term Instruments			5.1%
Bank Loan Obligations			3.7%
Other			4.7%

^†

% of Investments, at value as of 06/30/15

Fund Information (as of June 30, 2015)⁽¹⁾


Market Price			$24.20
NAV			$25.94
Premium/(Discount) to NAV			-6.71%
Market Price Distribution Yield⁽²⁾			9.42%
NAV Distribution Yield⁽²⁾			8.79%
Regulatory Leverage Ratio⁽³⁾			40%


Average Annual Total Return⁽¹⁾ for the period ended June 30, 2015
	1 Year		5 Year		Commencement of Operations (11/30/07)
Market Price		-4.07%		12.09%		11.49%
NAV		2.82%		14.16%		13.28%

All Fund returns are net of fees and expenses.

The average annual total returns shown above have been restated from previous reports to shareholders to align with the Fund’s change from a October 31 to a June 30 fiscal year end. For the period November 1, 2014 through June 30, 2015, the Fund’s total return was 0.22% and 2.79% on a market price and NAV basis, respectively.

⁽¹⁾

⁽²⁾

⁽³⁾

Investment Objective

PIMCO Income Opportunity Fund’s primary investment objective is to seek current income as a primary focus and also capital appreciation.

Portfolio Insights

For the period from November 1, 2014 through June 30, 2015, an allocation to non-agency mortgage-backed securities was a primary contributor to performance, as the sector continued to benefit from an improving U.S. housing market.

Despite widening spreads sending prices lower, the Fund’s exposure to select high yield corporate bonds contributed significantly to performance. In particular, attractive coupons generated by these investments and security selection in the pipelines and brokerage sectors enhanced the Fund’s performance.

The Fund’s allocation to the banking sector within the investment grade corporate bond universe was additive to performance. The banking sector was supported by improvements in sector fundamentals and de-leveraging imposed by regulators.

Overall contribution from U.S. interest rate exposure was positive for performance given the yield generated, despite the negative impact from strategies designed to benefit from rising long-term interest rates, which detracted from performance.

The Fund’s emerging market hard-currency-denominated holdings detracted from performance as prices declined, including an allocation to Brazilian quasi-sovereign and corporate debt. Although those bonds recovered partially in response to Petrobras’ long-awaited release of audited financial statements in the second quarter, prices on those bonds experienced volatility due to credit rating downgrades and a weaker economic outlook.

The Fund’s exposure to Brazilian local debt also weighed on its performance. The central bank of Brazil raised benchmark interest rates several times during the reporting period, moving them from 11.25% to 13.75%. The hawkish tone by monetary authorities negatively impacted investors’ sentiment for Brazilian local debt.


10		PIMCO CLOSED-END FUNDS

PIMCO Strategic Income Fund, Inc.




		Symbol on NYSE - RCS

Allocation Breakdown^†


U.S. Government Agencies			50.7%
Mortgage-Backed Securities			17.1%
U.S. Treasury Obligations			12.6%
Corporate Bonds & Notes			12.0%
Short-Term Instruments			1.4%
Other			6.2%

^†

% of Investments, at value as of 06/30/15

Fund Information (as of June 30, 2015)⁽¹⁾


Market Price			$8.69
NAV			$8.58
Premium/(Discount) to NAV			1.28%
Market Price Distribution Yield⁽²⁾			11.05%
NAV Distribution Yield⁽²⁾			11.19%
Regulatory Leverage Ratio⁽³⁾			40%


Average Annual Total Return⁽¹⁾ for the period ended June 30, 2015
	1 Year		5 Year		10 Year		Commencement of Operations (02/24/94)
Market Price		-9.30%		8.83%		8.09%		8.69%
NAV		4.84%		11.81%		10.44%		8.85%

All Fund returns are net of fees and expenses.

The average annual total returns shown above have been restated from previous reports to shareholders to align with the Fund’s change from a January 31 to a June 30 fiscal year end. For the period February 1, 2015 through June 30, 2015, the Fund’s total return was -5.81% and 4.87% on a market price and NAV basis, respectively.

⁽¹⁾

⁽²⁾

⁽³⁾

Investment Objective

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.

Portfolio Insights

For the period from February 1, 2015 through June 30, 2015, the Fund’s exposure to external emerging markets debt was a major contributor to performance. Within that sector, Russian quasi-sovereign bonds were the primary driver of positive returns. Improved investor sentiment in the oil market and stabilization in Russia’s external geopolitical position fueled a sharp rally during the reporting period.

Strategies designed to benefit from rising long-term interest rates contributed substantially to performance. Long-term rates increased sharply on renewed optimism regarding U.S. economic outlook.

The Fund’s allocation to agency-collateralized mortgage-obligation securities contributed to performance, as these bonds generated attractive yield.

The Fund’s allocation to non-agency mortgage-backed securities was a contributor to performance, as the sector continued to benefit from the improving U.S. housing market.

The Fund’s allocation to the banking sector via investments in junior parts of capital structure was positive for performance. It was supported by improvements in sector fundamentals and de-leveraging imposed by regulators.

The Fund’s allocation to high yield corporate bonds was beneficial to returns, supported by tightening spreads. However, negative security selection in the energy and utilities sectors mitigated some of these gains.

The Fund’s exposure to Brazilian local debt detracted from performance. The central bank of Brazil raised benchmark interest rates several times during the reporting period, moving them from 12.25% to 13.75%. This negatively impacted the Fund due to its exposure to local Brazilian interest rate risk.

There were no additional material detractors from results during the period.


		ANNUAL REPORT		JUNE 30, 2015		11

PIMCO Dynamic Credit Income Fund




		Symbol on NYSE - PCI

Allocation Breakdown^†


Asset-Backed Securities			33.8%
Corporate Bonds & Notes			29.3%
Mortgage-Backed Securities			24.1%
Short-Term Instruments			5.0%
Bank Loan Obligations			4.1%
Other			3.7%

^†

% of Investments, at value as of 06/30/15

Fund Information (as of June 30, 2015)⁽¹⁾


Market Price			$20.18
NAV			$23.00
Premium/(Discount) to NAV			-12.26%
Market Price Distribution Yield⁽²⁾			9.29%
NAV Distribution Yield⁽²⁾			8.15%
Regulatory Leverage Ratio⁽³⁾			42%


Average Annual Total Return⁽¹⁾ for the period ended June 30, 2015
	1 Year		Commencement of Operations (01/31/13)
Market Price		-4.85%		0.84%
NAV		1.86%		7.98%

All Fund returns are net of fees and expenses.

The average annual total returns shown above have been restated from previous reports to shareholders to align with the Fund’s change from a December 31 to a June 30 fiscal year end. For the period January 1, 2015 through June 30, 2015, the Fund’s total return was 2.23% and 4.95% on a market price and NAV basis, respectively.

⁽¹⁾

⁽²⁾

⁽³⁾

Investment Objective

PIMCO Dynamic Credit Income Fund’s primary investment objective is to seek current income and capital appreciation is a secondary objective.

Portfolio Insights

For the period from January 1, 2015 through June 30, 2015, the Fund’s allocation to non-agency mortgage-backed securities was a major contributor to performance. The sector continued to benefit from an improving U.S. housing market.

The Fund’s allocation to high yield corporate bonds was a major positive contributor to results. In particular, the Fund’s holdings of media/telecommunications, basic materials, pipelines and utility bonds contributed to performance. However, negative security selection in the energy, technology and manufacturing sectors mitigated some of these gains.

The Fund’s emerging market hard-currency-denominated holdings contributed to performance, as exposure to Russian and Brazilian corporate and quasi-sovereign bonds recovered much of their losses from the second half of 2014 due to stabilizing oil prices and, especially in the case of Russia, stabilization in external geopolitical position.

The Fund’s allocation to bonds of banks and specialty finance companies contributed to performance. Financial-related credits benefited from improving global economies, especially in the U.S.

The Fund’s exposure to Brazilian local debt detracted from performance. The central bank of Brazil raised benchmark interest rates several times during the reporting period, moving them from 11.25% to 13.75%. Higher interest rates negatively impacted the Fund due to exposure to local Brazilian interest rate risk.


12		PIMCO CLOSED-END FUNDS

PIMCO Dynamic Income Fund




		Symbol on NYSE - PDI

Allocation Breakdown^†


Mortgage-Backed Securities			58.5%
Asset-Backed Securities			15.5%
Corporate Bonds & Notes			14.5%
Short-Term Instruments			5.3%
Sovereign Issues			3.8%
Other			2.4%

^†

% of Investments, at value as of 06/30/15

Fund Information (as of June 30, 2015)⁽¹⁾


Market Price			$29.21
NAV			$31.38
Premium/(Discount) to NAV			-6.92%
Market Price Distribution Yield⁽²⁾			8.63%
NAV Distribution Yield⁽²⁾			8.03%
Regulatory Leverage Ratio⁽³⁾			40%


Average Annual Total Return⁽¹⁾ for the period ended June 30, 2015
	1 Year		Commencement of Operations (05/30/12)
Market Price		-1.95%		17.46%
NAV		7.13%		22.28%

All Fund returns are net of fees and expenses.

The average annual total returns shown above have been restated from previous reports to shareholders to align with the Fund’s change from a March 31 to a June 30 fiscal year end. For the period April 1, 2015 through June 30, 2015, the Fund’s total return was 2.87% and 4.17% on a market price and NAV basis, respectively.

⁽¹⁾

⁽²⁾

⁽³⁾

Investment Objective

PIMCO Dynamic Income Fund’s primary investment objective is to seek current income, with capital appreciation as a secondary objective.

Portfolio Insights

For the period from April 1, 2015 through June 30, 2015, the Fund’s allocation to U.S. non-agency mortgage-backed securities was the primary contributor to performance. The sector continued to benefit from the improving U.S. housing market.

The Fund’s emerging market holdings contributed substantially to performance, as exposure to Russian and Brazilian corporate and quasi-sovereign bonds recovered much of their losses from the second half of 2014 due to stabilizing oil prices and, especially in the case of Russia, stabilization in external geopolitical position.

Despite widening spreads, the Fund’s exposure to select high yield corporate bonds contributed to results. In particular, security selection in the retail and entertainment sectors was positive for performance.

The Fund’s exposure to U.S. interest rates had a modestly positive impact on the portfolio. Substantial gains from strategies designed to benefit from rising long-term U.S. interest rates helped offset the negative impact of higher U.S. intermediate and long rates elsewhere in the portfolio.

The Fund’s exposure to European residential mortgage-backed securities had a minor negative impact on the Fund’s portfolio, as these issues were exposed to rising rates in the region and their prices declined.

The Fund’s tactical interest rate exposure in the United Kingdom was negative for performance, as rates rose in the country given the strength in its economy.


		ANNUAL REPORT		JUNE 30, 2015		13

Financial Highlights


Selected Per Share Data for the Year or Period Ended:	Net Asset Value Beginning of Year or Period		Net Investment Income ^(a)		Net Realized/ Unrealized Gain (Loss)			Total from Investment Operations			Distribution from Net Investment Income			Distribution from Net Realized Capital Gain			Tax Basis Return of Capital			Total Distributions

PCM Fund, Inc.
01/01/2015 - 06/30/2015^(d)	$	10.72	$	0.44	$	0.00	^	$	0.44		$	(0.48	)	$	0.00		$	0.00		$	(0.48	)^(h)
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	)
12/31/2010		7.73		1.12		2.29			3.41			(1.26	)		0.00			0.00			(1.26	)

PIMCO Global StocksPLUS^® & Income Fund
04/01/2015 - 06/30/2015^(e)	$	12.82	$	0.34	$	0.27		$	0.61		$	(0.55	)	$	0.00		$	0.00		$	(0.55	)^(h)
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	)
03/31/2011		12.52		1.75		2.81			4.56			(2.20	)		0.00			0.00			(2.20	)

PIMCO Income Opportunity Fund
11/01/2014 - 06/30/2015^(f)	$	28.38	$	1.54	$	(0.86	)	$	0.68		$	(2.34	)	$	(0.77	)	$	(0.01	)	$	(3.12	)^(h)
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	)
10/31/2010		21.40		3.11		4.58			7.69			(2.12	)		0.00			0.00			(2.12	)

PIMCO Strategic Income Fund, Inc.
02/01/2015 - 06/30/2015^(g)	$	8.57	$	0.30	$	0.11		$	0.41		$	(0.40	)	$	0.00		$	0.00		$	(0.40	)^(h)
01/31/2014		9.24		0.90		(0.55	)		0.35			(1.02	)		0.00			0.00			(1.02	)
01/31/2013		9.66		0.99		(0.30	)		0.69			(1.11	)		0.00			0.00			(1.11	)
01/31/2012		8.91		1.05		0.95			2.00			(1.25	)		0.00			0.00			(1.25	)
01/31/2011		9.97		1.36		(1.03	)		0.33			(1.39	)		0.00			0.00			(1.39	)
01/31/2010		9.08		1.27		1.04			2.31			(1.42	)		0.00			0.00			(1.42	)

PIMCO Dynamic Credit Income Fund (Consolidated)
01/01/2015 - 06/30/2015^(d)	$	22.83	$	0.76	$	0.35		$	1.11		$	(0.94	)	$	0.00		$	0.00		$	(0.94	)^(h)
12/31/2014		24.04		1.79		(0.53	)		1.26			(2.47	)		0.00			0.00			(2.47	)
01/31/2013 - 12/31/2013		23.88		1.33		0.76			2.09			(1.68	)		(0.24	)		0.00			(1.92	)

PIMCO Dynamic Income Fund (Consolidated)
04/01/2015 - 06/30/2015^(e)	$	30.74	$	0.80	$	0.47		$	1.27		$	(0.63	)	$	0.00		$	0.00		$	(0.63	)^(h)
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	)

*	Annualized

^	Reflects an amount rounding to less than one cent.

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

^(b)

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.

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

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

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

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

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

^(h)	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.


14		PIMCO CLOSED-END FUNDS					See Accompanying Notes


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 ^(b)			Net Assets End of Year or Period (000s)		Ratio of Expenses to Average Net Assets			Ratio of Expenses to Average Net Assets Excluding Interest Expense ^(c)			Ratio of Net Investment Income to Average Net Assets			Portfolio Turnover Rate


$	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			9.88		10.80		54.01			113,020		2.41			1.75			11.91			28


$	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			14.88		24.48		43.45			150,881		2.81			2.20			13.07			80


$	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			26.97		26.92		39.51			391,730		2.36			1.86			13.07			77


$	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			9.97		10.44		11.82			394,695		1.43			1.04			12.98			168


$	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		$	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			9.97			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


		ANNUAL REPORT		JUNE 30, 2015		15

Statements of Assets and Liabilities

June 30, 2015


(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*	$	209,566		$	189,707		$	648,420		$	911,743
Financial Derivative Instruments
Exchange-traded or centrally cleared		11			937			277			339
Over the counter		125			289			3,055			1,338
Cash		82			746			445			126
Deposits with counterparty		622			15,542			1,816			8,962
Foreign currency, at value		0			140			864			356
Receivable for investments sold		2,589			2,135			9,460			3,072
Receivable for mortgage dollar rolls		0			0			0			68,309
Interest and dividends receivable		1,211			1,241			4,611			3,697
Other assets		2			2			2			8
Total Assets		214,208			210,739			668,950			997,950

Liabilities:
Borrowings & Other Financing Transactions
Payable for reverse repurchase agreements	$	88,045		$	68,847		$	263,384		$	138,200
Payable for sale-buyback transactions		0			0			0			103,804
Payable for mortgage dollar rolls		0			0			0			68,155
Financial Derivative Instruments
Exchange-traded or centrally cleared		1			333			163			157
Over the counter		1,749			3,208			8,621			2,261
Payable for investments purchased		7			488			1,112			321,777
Deposits from counterparty		0			217			3,767			1,670
Distributions payable to common shareholders		923			1,928			2,844			3,336
Accrued management fees		160			191			612			281
Other liabilities		88			59			94			617
Total Liabilities		90,973			75,271			280,597			640,258

Net Assets	$	123,235		$	135,468		$	388,353		$	357,692

Net Assets Consist of:
Shares:
Par value ($0.00001 per share)	$	12		$	0		$	0		$	0
Paid in capital in excess of par		125,541			232,189			343,103			425,864
Undistributed (overdistributed) net investment income		(681	)		(1,169	)		(5,419	)		3,365
Accumulated undistributed net realized (loss)		(18,812	)		(123,865	)		(5,005	)		(94,202	)
Net unrealized appreciation		17,175			28,313			55,674			22,665
	$	123,235		$	135,468		$	388,353		$	357,692

Shares Issued and Outstanding		11,538			10,518			14,968			41,700

Net Asset Value Per Share	$	10.68		$	12.88		$	25.94		$	8.58

Cost of Investments in securities	$	195,631		$	170,452		$	602,052		$	888,310
Cost of Foreign Currency Held	$	0		$	141		$	868		$	360
Cost or Premiums of Financial Derivative Instruments, net	$	(4,892	)	$	(3,466	)	$	(15,781	)	$	(743	)

* Includes repurchase agreements of:	$	386		$	1,000		$	0		$	764

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


16		PIMCO CLOSED-END FUNDS					See Accompanying Notes

Consolidated Statements of Assets and Liabilities

June 30, 2015


(Amounts in thousands^†, except per share amounts)	PIMCO Dynamic Credit Income Fund			PIMCO Dynamic Income Fund

Assets:
Investments, at value
Investments in securities*	$	5,302,019		$	2,337,355
Financial Derivative Instruments
Exchange-traded or centrally cleared		3,648			485
Over the counter		23,956			12,687
Cash		22,751			13,506
Deposits with counterparty		19,858			25,687
Foreign currency, at value		1,336			754
Receivable for investments sold		176,217			7,617
Interest and dividends receivable		36,558			14,294
Other assets		16			8
Total Assets		5,586,359			2,412,393

Liabilities:
Borrowings & Other Financing Transactions
Payable for reverse repurchase agreements	$	2,257,227		$	940,158
Financial Derivative Instruments
Exchange-traded or centrally cleared		1,468			162
Over the counter		21,835			17,459
Payable for investments purchased		97,321			1,901
Deposits from counterparty		24,897			13,680
Distributions payable to common shareholders		21,441			9,551
Accrued management fees		6,158			2,432
Other liabilities		323			159
Total Liabilities		2,430,670			985,502

Net Assets	$	3,155,689		$	1,426,891

Net Assets Consist of:
Shares:
Par value ($0.00001 per share)	$	1		$	0
Paid in capital in excess of par		3,274,224			1,086,637
Undistributed (overdistributed) net investment income		(9,006	)		35,117
Accumulated undistributed net realized gain (loss)		(72,839	)		39,018
Net unrealized appreciation (depreciation)		(36,691	)		266,119
	$	3,155,689		$	1,426,891

Shares Issued and Outstanding		137,221			45,479

Net Asset Value Per Common Share	$	23.00		$	31.38

Cost of Investments in securities	$	5,354,325		$	2,101,190
Cost of Foreign Currency Held	$	1,320		$	745
Cost or Premiums of Financial Derivative Instruments, net	$	(13,210	)	$	(27,278	)

* Includes repurchase agreements of:	$	172,912		$	56,487

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


		ANNUAL REPORT		JUNE 30, 2015		17

Statements of Operations


	PCM Fund, Inc.						PIMCO Global StocksPLUS^® & Income Fund

(Amounts in thousands^†)	Period from January 1, 2015 to June 30, 2015^(b)			Year Ended December 31, 2014			Period from April 1, 2015 to June 30, 2015^(c)			Year Ended March 31, 2015

Investment Income:
Interest	$	6,432		$	13,243		$	4,354		$	15,288
Dividends		2			1			7			93
Total Income		6,434			13,244			4,361			15,381

Expenses:
Management fees		931			1,681			587			2,457
Trustee fees and related expenses		6			8			3			13
Interest expense		439			630			212			759
Miscellaneous expense		0			0			0			0

Operating expenses pre-transition^(a)
Custodian and accounting agent		0			26			0			33
Audit and tax services		0			31			0			21
Shareholder communications		0			20			0			26
New York Stock Exchange listing		0			13			0			13
Transfer agent		0			17			0			11
Legal		0			4			0			2
Insurance		0			1			0			4
Other expenses		0			0			0			3
Total Expenses		1,376			2,431			802			3,342

Net Investment Income		5,058			10,813			3,559			12,039

Net Realized Gain (Loss):
Investments in securities		5,518			(95	)		803			5,838
Exchange-traded or centrally cleared financial derivative instruments		106			(423	)		5,934			(26,844	)
Over the counter financial derivative instruments		(38	)		582			1,453			1,239
Foreign currency		0			0			120			(200	)

Net Realized Gain (Loss)		5,586			64			8,310			(19,967	)

Net Change in Unrealized Appreciation (Depreciation):
Investments in securities		(5,767	)		(3,968	)		(2,132	)		(7,628	)
Exchange-traded or centrally cleared financial derivative instruments		50			(77	)		(1,591	)		17,929
Over the counter financial derivative instruments		140			45			(1,364	)		(167	)
Foreign currency assets and liabilities		0			0			(517	)		326

Net Change in Unrealized Appreciation (Depreciation)		(5,577	)		(4,000	)		(5,604	)		10,460

Net Increase in Net Assets Resulting from Operations	$	5,067		$	6,877		$	6,265		$	2,532

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

^(a)	These expenses were incurred by the Fund prior to the close of business on September 5, 2014. Subsequent to the close of business on September 5, 2014, any such operating expenses are borne by PIMCO.

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

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

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

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


18		PIMCO CLOSED-END FUNDS					See Accompanying Notes


PIMCO Income Opportunity Fund						PIMCO Strategic Income Fund, Inc.

Period from November 1, 2014 to June 30, 2015^(d)			Year Ended October 31, 2014			Period from February 1, 2015 to June 30, 2015^(e)			Year Ended January 31, 2015


$	28,368		$	47,562		$	14,270		$	41,704
	1,015			1,523			6			4
	29,383			49,085			14,276			41,708


	4,611			6,706			1,400			3,342
	20			29			11			23
	1,646			1,563			294			743
	0			1			0			2


	0			150			0			110
	0			46			0			59
	0			53			0			50
	0			17			0			21
	0			23			0			14
	0			14			0			31
	0			14			0			9
	0			2			0			1
	6,277			8,618			1,705			4,405

	23,106			40,467			12,571			37,303


	2,656			15,279			6,524			22,224
	(10,082	)		3,201			1,054			(12,005	)
	3,762			560			3,414			4,880
	(303	)		(615	)		366			299

	(3,967	)		18,425			11,358			15,398


	(13,785	)		(14,479	)		(15,176	)		(19,834	)
	6,966			(9,815	)		11,385			(21,462	)
	(1,296	)		3,839			(3,395	)		2,829
	(932	)		285			20			(27	)

	(9,047	)		(20,170	)		(7,166	)		(38,494	)

$	10,092		$	38,722		$	16,763		$	14,207


		ANNUAL REPORT		JUNE 30, 2015		19

Consolidated Statements of Operations


	PIMCO Dynamic Credit Income Fund						PIMCO Dynamic Income Fund

(Amounts in thousands^†)	Period from January 1, 2015 to June 30, 2015 ^(b)			Year Ended December 31, 2014			Period from April 1, 2015 to June 30, 2015 ^(c)			Year Ended March 31, 2015

Investment Income:
Interest	$	143,210		$	320,629		$	46,015		$	192,003
Dividends		1,486			4,810			153			1,635
Total Income		144,696			325,439			46,168			193,638

Expenses:
Management fees		30,346			63,222			7,082			30,881
Trustee fees and related expenses		109			197			21			82
Interest expense		10,198			15,058			2,893			14,742

Operating expenses pre-transition^(a)
Custodian and accounting agent		0			674			0			189
Audit and tax services		0			62			0			36
Shareholder communications		0			131			0			48
New York Stock Exchange listing		0			67			0			22
Transfer agent		0			17			0			11
Legal		0			86			0			30
Insurance		0			13			0			30
Other expenses		0			0			0			3
Total Expenses		40,653			79,527			9,996			46,074

Net Investment Income		104,043			245,912			36,172			147,564

Net Realized Gain:
Investments in securities		3,392			74,282			47,578			59,080
Exchange-traded or centrally cleared financial derivative instruments		8,644			(61,931	)		(5,423	)		(9,188	)
Over the counter financial derivative instruments		19,806			199			(155	)		43,219
Foreign currency		(2,220	)		372			(4,680	)		(16,220	)

Net Realized Gain		29,622			12,922			37,320			76,891

Net Change in Unrealized Appreciation (Depreciation):
Investments in securities		21,192			(134,022	)		(16,833	)		(92,447	)
Exchange-traded or centrally cleared financial derivative instruments		(294	)		25,530			22,234			(39,067	)
Over the counter financial derivative instruments		7,756			12,753			(16,279	)		28,389
Foreign currency assets and liabilities		(10,131	)		9,887			(5,059	)		4,083

Net Change in Unrealized Appreciation (Depreciation)		18,523			(85,852	)		(15,937	)		(99,042	)

Net Increase in Net Assets Resulting from Operations	$	152,188		$	172,982		$	57,555		$	125,413

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

^(a)	These expenses were incurred by the Fund prior to the close of business on September 5, 2014. Subsequent to the close of business on September 5, 2014, any such operating expenses are borne by PIMCO.

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

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


20		PIMCO CLOSED-END FUNDS					See Accompanying Notes

Statements of Changes in Net Assets


	PCM Fund, Inc.									PIMCO Global StocksPLUS^® & Income Fund

(Amounts in thousands^†)	Period from January 1, 2015 to June 30, 2015 ^(a)			Year Ended December 31, 2014			Year Ended December 31, 2013			Period from April 1, 2015 to June 30, 2015 ^(b)			Year Ended March 31, 2015			Year Ended March 31, 2014

Increase (Decrease) in Net Assets from:

Operations:
Net investment income	$	5,058		$	10,813		$	12,859		$	3,559		$	12,039		$	14,425
Net realized gain (loss)		5,586			64			224			8,310			(19,967	)		25,860
Net change in unrealized appreciation (depreciation)		(5,577	)		(4,000	)		(2,501	)		(5,604	)		10,460			(13,870	)

Net Increase in Net Assets Resulting from Operations		5,067			6,877			10,582			6,265			2,532			26,415

Distributions to Shareholders:
From net investment income		(5,537	)		(12,094	)		(12,602	)		(5,782	)		(23,021	)		(22,853	)

Total Distributions to Shareholders		(5,537	)^(c)		(12,094	)		(12,602	)		(5,782	)^(c)		(23,021	)		(22,853	)

Fund Share Transactions:**
Issued as reinvestment of distributions		72			178			231			391			1,690			1,661

Total Increase (Decrease) in Net Assets		(398	)		(5,039	)		(1,789	)		874			(18,799	)		5,223

Net Assets:
Beginning of year		123,633			128,672			130,461			134,594			153,393			148,170
End of year*	$	123,235		$	123,633		$	128,672		$	135,468		$	134,594		$	153,393

* Including undistributed (overdistributed) net investment income of:	$	(681	)	$	(540	)	$	15		$	(1,169	)	$	(3,939	)	$	(4,237	)

** Fund Share Transactions:
Shares issued as reinvestment of distributions		7			16			20			18			78			78

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

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

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

^(c)	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.


		ANNUAL REPORT		JUNE 30, 2015		21

Statements of Changes in Net Assets (Cont.)


	PIMCO Income Opportunity Fund									PIMCO Strategic Income Fund, Inc.

(Amounts in thousands^†)	Period from November 1, 2014 to June 30, 2015 ^(a)			Year Ended October 31, 2014			Year Ended October 31, 2013			Period from February 1, 2015 to June 30, 2015 ^(b)			Year Ended January 31, 2015			Year Ended January 31, 2014

Increase (Decrease) in Net Assets from:

Operations:
Net investment income	$	23,106		$	40,467		$	42,569		$	12,571		$	37,303		$	40,242
Net realized gain (loss)		(3,967	)		18,425			11,347			11,358			15,398			(3,220	)
Net change in unrealized appreciation (depreciation)		(9,047	)		(20,170	)		33			(7,166	)		(38,494	)		(8,936	)

Net Increase in Net Assets Resulting from Operations		10,092			38,722			53,949			16,763			14,207			28,086

Distributions to Shareholders:
From net investment income		(34,865	)		(42,972	)		(42,006	)		(16,651	)		(42,226	)		(45,351	)
From net realized capital gains		(11,498	)		0			0			0			0			0
Tax basis return of capital		(224	)		0			0			0			0			0

Total Distributions to Shareholders		(46,587	)^(c)		(42,972	)		(42,006	)		(16,651	)^(c)		(42,226	)		(45,351	)

Fund Share Transactions:**
Issued as reinvestment of distributions		216			2,321			2,642			1,638			4,199			4,710

Total Increase (Decrease) in Net Assets		(36,279	)		(1,929	)		14,585			1,750			(23,820	)		(12,555	)

Net Assets:
Beginning of year		424,632			426,561			411,976			355,942			379,762			392,317
End of year*	$	388,353		$	424,632		$	426,561		$	357,692		$	355,942		$	379,762

* Including undistributed (overdistributed) net investment income of:	$	(5,419	)	$	6,094		$	7,629		$	3,365		$	2,692		$	(542	)

** Fund Share Transactions:
Shares issued as reinvestment of distributions		8			82			91			182			432			464

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

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

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

^(c)	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.


22		PIMCO CLOSED-END FUNDS					See Accompanying Notes

Consolidated Statements of Changes in Net Assets


	PIMCO Dynamic Credit Income Fund						PIMCO Dynamic Income Fund

(Amounts in thousands^†)	Period from January 1, 2015 to June 30, 2015 ^(a)		Year Ended December 31, 2014		Period from January 31, 2013 to December 31, 2013		Period from April 1, 2015 to June 30, 2015 ^(b)		Year Ended March 31, 2015		Year Ended March 31, 2014

Increase (Decrease) in Net Assets from:

Operations:
Net investment income	$	104,043	$	245,912	$	182,615	$	36,172	$	147,564	$	167,667
Net realized gain (loss)		29,622		12,922		75,578		37,320		76,891		(42,257	)