SCHEDULE: Saba Capital Boosts Stake in PIMCO Dynamic Income Fund

Saba Capital Management and its affiliates report a 16.75% beneficial ownership stake in PIMCO Dynamic Income Strategy Fund.

Summary

• Saba Capital Management, L.P., Saba Capital Management GP, LLC, and Boaz R. Weinstein (collectively, the "Reporting Persons") beneficially own 7,489,207 common shares of PIMCO Dynamic Income Strategy Fund.
• This ownership represents 16.75% of the fund's common stock outstanding.
• The percentage is calculated based on 44,706,949 shares of common stock outstanding as of June 30, 2025, as disclosed in the company's N-CSR filed on September 5, 2025.
• The Reporting Persons hold shared voting power and shared dispositive power over all beneficially owned shares.
• The filing is an Amendment No. 9 to Schedule 13G, indicating an update to a previously reported ownership position.

Sentiment

Score: 7

Explanation: The filing indicates a significant, potentially activist, stake by Saba Capital, which could be seen positively by investors looking for catalysts in closed-end funds. The certification explicitly mentions activities solely in connection with a nomination under Rule 14a-11, suggesting potential future engagement.

Positives

• A significant institutional investor, Saba Capital, known for its focus on closed-end funds, holds a substantial stake, which could signal a belief in the fund's underlying value or potential for strategic improvements.
• The filing explicitly mentions the possibility of activities solely in connection with a nomination under Rule 14a-11, suggesting potential future engagement that could act as a catalyst for shareholder value.

Future Outlook

NA

Industry Context

Saba Capital Management is a prominent activist investor, particularly active in the closed-end fund (CEF) space. Their significant stake in PIMCO Dynamic Income Strategy Fund aligns with a broader industry trend where activist investors target CEFs trading at discounts to their net asset value (NAV) to unlock shareholder value through governance changes, share repurchases, or other strategic initiatives. The mention of Rule 14a-11 nominations suggests a potential for future engagement in the fund's governance.

Corporate Governance

Stakeholder Impact

• Shareholders: Potential for increased shareholder value if Saba Capital's involvement leads to improved fund performance, reduced discount to NAV, or enhanced corporate governance. Could also introduce volatility if an activist campaign ensues.
• Management/Board: May face increased scrutiny and pressure from a significant shareholder, potentially leading to changes in strategy or operations.

Next Steps

• Monitor for any subsequent Schedule 13D filings or proxy statements from Saba Capital, which would indicate a more active intent to influence the issuer's control or management.
• Observe any potential nominations for board seats under Rule 14a-11, as suggested by the certification.

Key Dates

Recommendation

Saba Capital Management, a known activist investor in closed-end funds, has disclosed a significant 16.75% stake in PIMCO Dynamic Income Strategy Fund. The filing explicitly notes the possibility of activities solely in connection with a nomination under Rule 14a-11, indicating potential future engagement in corporate governance. While this could be a positive catalyst for value creation, the specific actions Saba Capital will take are not yet clear. Investors should hold to monitor developments and Saba's strategic intentions before making further investment decisions.

Keywords

PIMCO Dynamic Income Strategy Fund, Saba Capital Management, Boaz R. Weinstein, Schedule 13G, Beneficial Ownership, Closed-End Fund, Investment Management, Shareholder Activism, Corporate Governance