<DOCUMENT>
<TYPE>EX-99.77D POLICIES
<SEQUENCE>2
<FILENAME>r77d_PC5Z.txt
<DESCRIPTION>INVESTMENT POLICIES
<TEXT>
Investment Strategy Updates

Effective October 6, 2015, PIMCO Income Strategy Fund
adopted the following nonfundamental investment policy:

The staff of the SEC has taken the position that purchased OTC options and the
assets used as cover for written OTC options should generally be treated as
illiquid. However, the staff of the SEC has also taken the position that the
determination of whether a particular instrument is liquid should be made
under guidelines and standards established by a funds board of
trustees/directors. The SEC staff has provided examples of factors that may
be taken into account in determining whether a particular instrument should
be treated as liquid. Pursuant to policies adopted by the Funds Board of
Trustees, purchased OTC options and the assets used as cover for OTC options
written by a Fund may be treated as liquid under certain circumstances, such
as when PIMCO has the contractual right to terminate or close out the OTC
option on behalf of a Fund within seven days. These policies are not
fundamental policies of the Funds and may be changed or modified by the Board
of Trustees without the approval of shareholders, provided that any such
change or modification will be consistent with applicable positions of the
SEC staff.
</TEXT>
</DOCUMENT>
