PIMCO Income Strategy Fund II (PFN) Form 424B3 — Jun 24, 2026

PIMCO Income Strategy Fund II has filed a supplement to its prospectus to authorize and disclose its ability to originate loans directly. This update expands the Fund’s mandate to include residential and commercial real estate loans, consumer loans, and foreign loans, which may be made to subprime borrowers. The filing introduces extensive new risk factors, including "Loan Origination Risk" and "Foreign Loan Originations Risk," highlighting potential issues with illiquidity, borrower default, and regulatory compliance. It warns that the Fund may incur expenses for unconsummated transactions, known as broken deal costs.

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