N-CSR

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 811-21601

     PIMCO Floating Rate Strategy Fund
(Exact name of registrant as specified in charter)

1345 Avenue of the Americas, New York, New York 10105
(Address of principal executive offices) (Zip code)

Larry G. Altadonna - 1345 Avenue of the Americas, New York, New York 10105
(Name and address of agent for service)

Registrant's telephone number, including area code: 212-739-3371

Date of fiscal year end: August 31, 2005

Date of reporting period: August 31, 2005

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.    Report to Shareholders

     PIMCO Floating Rate Strategy Fund

A n n u a l   R e p o r t     
A u g u s t   31 ,   2 0 0 5     

	Contents
	Letter to Shareholders	1
	Performance & Statistics	2
	Schedule of Investments	3-16
	Statement of Assets and Liabilities	17
	Statement of Operations	18
	Statement of Changes in Net Assets	19
	Statement of Cash Flows	20
	Notes to Financial Statements	21-31
	Financial Highlights	32
	Report of Independent Registered Public
	Accounting Firm	33
	Tax Information and Privacy Policy	34
	Proxy Voting Policies & Procedures	35
	Dividend Reinvestment Plan	36
	Board of Trustees	37-38
	Principal Officers	Inside Back Cover

PIMCO Floating Rate Strategy Fund Letter to Shareholders

October 17, 2005

Dear Shareholder:

We are pleased to provide you with the initial annual report of the PIMCO Floating Rate Strategy Fund (the “Fund”) for the period October 29, 2004 (commencement of operations) through August 31, 2005.

Please refer to the following page for specific Fund information. If you have any questions regarding the information provided, we encourage you to contact your financial advisor or call the Fund’s transfer agent at (800) 331-1710. Also, note that a wide range of information and resources can be accessed through our Web site, www.allianzinvestors.com.

Together with Allianz Global Investors Fund Management LLC, the Fund’s investment manager and Pacific Investment Management Company LLC, the Fund’s sub-adviser, we thank you for investing with us.

We remain dedicated to serving your investment needs.

Sincerely,

Robert E. Connor Chairman
Brian S. Shlissel President & Chief Executive Officer

8.31.05 | PIMCO Floating Rate Strategy Fund Annual Report 1

PIMCO Floating Rate Strategy Fund Performance & Statistics
August 31, 2005 (unaudited)

Symbol:	Primary Investments:	Inception Date:
PFN	Floating rate debt instruments,	October 29, 2004
	substantial portion of which
Objective:	will be senior floating rate	Total Net Assets(1) :
Seeks high current income,	loans.	$1.269 billion
consistent with the
preservation of capital.		Portfolio Manager:
		Raymond G. Kennedy

Total Return(2):	Market Price		Net Asset Value (“NAV”)
Six months ended 8/31/05	(3.56	)%	2.53	%
Commencement of Operations (10/29/04) to 8/31/05	(4.39	)%	4.27	%

Common Share Market Price/NAV Performance: Commencement of Operations (10/29/04) to 8/31/05	Market Price/NAV:
	Market Price	$18.21
	NAV	$18.98
	Discount to NAV	(4.06	)%
	Market Price Yield(3)	7.13	%
	Portfolio Composition as a % of Total Investments

(1) Inclusive of net assets attributable to Preferred Shares outstanding.

(2) Past performance is no guarantee of future results. Total return is calculated by subtracting the value of an investment in the Fund at the beginning of each specified period from the value at the end of the period and dividing the remainder by the value of the investment at the beginning of the period and expressing the result as a percentage. The calculation assumes that all income dividends have been reinvested at prices obtained under the Fund’s dividend reinvestment plan. Total return does not reflect broker commissions or sales charges. Total return for a period of less than one year is not annualized.

An investment in the Fund involves risk, including the loss of principal. Total return, price, yield and net asset value will fluctuate with changes in market conditions. This data is provided for information only and is not intended for trading purposes. Closed-end funds, unlike open-end funds, are not continuously offered. There is a one-time public offering and once issued, shares of closed-end funds are sold in the open market through a stock exchange. Net asset value is total assets applicable to common shareholders less total liabilities divided by the number of common shares outstanding. Holdings are subject to change daily.

(3) Market Price Yield is determined by dividing the annualized current monthly per share dividend to common shareholders by the market price per common share at August 31, 2005.

2 PIMCO Floating Rate Strategy Fund Annual Report | 8.31.05

PIMCO Floating Rate Strategy Fund Schedule of Investments
August 31, 2005

Principal
Amount
(000)			Value
SENIOR LOANS (a)(b)(c)—62.0%
	Aerospace—0.5%
	K & F Industries, Inc.,
$     4,534	5.92%, 11/18/12, Term B	$	4,614,573
2,223	6.15%, 11/18/12, Term B		2,262,046
			6,876,619
	Apparel & Textiles—0.2%
	Simmons Co.,
2,458	5.75%, 12/19/11, Term C		2,496,297
60	5.938%, 12/19/11, Term C		61,025
295	6.438%, 12/19/11, Term C		299,460
151	8.00%, 12/19/11, Term C		153,618
			3,010,400
	Automotive—0.5%
2,000	Dura Operating Corp., 7.07%, 4/28/11		2,025,000
	Visteon Corp.,
496	7.58%, 6/25/07		502,977
169	7.613%, 6/25/07		170,793
958	7.80%, 6/25/07		970,693
962	7.839%, 6/25/07		974,746
43	7.873%, 6/25/07		43,793
323	7.90%, 6/25/07		327,118
440	7.912%, 6/25/07		445,830
88	8.02%, 6/25/07		89,166
152	8.14%, 6/25/07		154,014
671	8.153%, 6/25/07		680,256
257	8.394%, 6/25/07		260,020
230	8.553%, 6/25/07		232,744
			6,877,150
	Automotive Products—4.7%
9,743	Affinia Group, 6.40%, 11/30/11, Term B		9,795,066
	Cooper Standard Automotive, Inc.,
3,992	5.50%, 12/31/11, Term B		3,997,107
6,422	5.50%, 12/31/11, Term C		6,430,129
7,000	Delphi Corp., 10.30%, 6/14/11		7,193,123
	Goodyear Tire & Rubber Co.,
8,500	6.32%, 4/30/10		8,615,354
2,000	7.07%, 4/1/11		2,027,500
916	Plastech Engineered Products, Inc., 8.24%, 2/12/10, Term B		890,738
6,510	Polypore, Inc., 5.92%, 11/12/11, Term B		6,547,666
	Tenneco Automotive, Inc.,
534	5.59%, 12/12/10, Term B		543,836
3,217	6.08%, 12/12/10, Term B (e)		3,273,011
	TRW Automotive, Inc.,
5,970	4.938%, 10/31/10, Term E		6,029,700
4,468	5.25%, 6/30/12, Term B		4,519,648
2,746	VWR International, Inc., 6.14%, 4/7/11, Term B		2,787,190
			62,650,068

8.31.05 | PIMCO Floating Rate Strategy Fund Annual Report 3

PIMCO Floating Rate Strategy Fund Schedule of Investments
August 31, 2005

Principal
Amount
(000)			Value
	Building/Construction—1.5%
	Masonite International Corp.,
$     188	5.49%, 4/6/13, Term B	$	188,303
9,787	5.66%, 4/6/13, Term B		9,824,103
	Nortek, Inc.,
9,358	5.91%, 8/27/11		9,482,264
48	7.75%, 8/27/11		48,133
			19,542,803
	Chemicals—4.1%
6,000	Brenntag AG, 6.81%, 2/27/12, Term B2		6,076,002
10,361	Celanese AG, 5.74%, 4/6/11, Term B		10,561,539
4,000	Cognis BV, 5.44%, 5/12/12, Term B1 (e)		4,032,456
	Hercules, Inc.,
70	5.24%, 10/8/10, Term B		70,939
1,311	5.31%, 10/8/10, Term B		1,330,101
5,200	Huntsman International LLC, 5.323%, 8/10/12		5,276,378
	Innophos, Inc.,
1,218	5.55%, 8/15/11, Term B		1,232,394
1,818	5.86%, 8/15/11, Term B		1,839,394
764	5.97%, 8/15/11, Term B		772,546
	KRATON Polymers Group LLC,
580	6.125%, 12/2/09		589,871
2,591	6.25%, 12/23/10		2,635,704
1,023	6.438%, 12/2/09		1,041,019
81	6.50%, 12/2/09		82,366
	Lyondell-CITGO Refining, L.P.,
7,925	5.51%, 5/21/07, Term B		8,048,599
20	5.67%, 5/21/07, Term B		20,376
	Nalco Co.,
2,768	5.45%, 11/1/10, Term B		2,815,740
3,590	5.66%, 11/4/10, Term B		3,651,725
2,442	5.87%, 11/1/10, Term B		2,484,476
2,993	Niagara Holdings, Inc., 5.50%, 2/11/12, Term B		3,031,776
			55,593,401
	Commercial Products—0.2%
2,204	Alliance Laundry Holdings LLC, 5.80%, 1/27/12, Term B		2,240,097
	Computer Services—0.9%
12,000	Sungard Data Systems, Inc., 6.28%, 1/22/13 (e)		12,178,500
	Computer Software—0.7%
	Spectrum Brands Corp.,
1,154	5.27%, 2/6/12, Term B		1,171,367
974	5.48%, 2/7/12, Term B		988,464
325	5.54%, 2/7/12, Term B		329,488
6,888	UGS Corp., 5.67%, 3/31/12, Term B		6,997,393
			9,486,712

4 PIMCO Floating Rate Strategy Fund Annual Report | 8.31.05

PIMCO Floating Rate Strategy Fund Schedule of Investments
August 31, 2005

Principal
Amount
(000)			Value
	Consumer Products—1.7%
	Jarden Corp.,
$     9,343	5.49%, 1/21/12, Term B	$	9,430,122
1,105	5.635%, 1/21/12, Term B		1,115,331
	Rayovac Corp.,
609	5.49%, 2/6/12, Term B		617,869
4,043	5.55%, 2/7/12, Term B		4,104,103
909	5.56%, 2/7/12, Term B		922,567
470	5.79%, 2/7/12, Term B		477,148
	Revlon, Inc.,
1,513	9.38%, 7/31/10		1,566,856
1,513	9.48%, 7/31/10		1,566,856
1,513	9.49%, 7/31/10		1,566,856
756	9.98%, 7/9/10		783,428
			22,151,136
	Containers—3.4%
	Graham Packaging Co.,
2,760	5.938%, 10/7/11, Term B		2,807,378
50	6.00%, 9/15/11, Term B		50,884
7,144	6.063%, 9/15/11, Term B		7,267,599
7,396	Horizon Lines LLC, 5.99%, 7/7/11		7,510,364
	Intertape Polymer Group, Inc.,
872	5.65%, 7/28/11, Term B		889,212
2,591	5.742%, 7/28/11, Term B		2,640,959
	Solo Cup Co.,
4,485	5.49%, 2/27/11, Term B		4,538,468
4,676	5.86%, 2/27/11, Term B		4,731,317
	Stone Container Corp.,
1,528	3.24%, 11/1/10		1,550,628
2,792	5.375%, 11/1/10, Term B		2,833,024
2,505	5.375%, 11/1/11, Term C		2,542,468
1,816	5.563%, 11/1/10, Term B		1,842,645
4,420	5.563%, 11/1/11, Term B		4,485,621
1,234	5.575%, 11/1/10, Term C		1,252,165
			44,942,732
	Diversified Manufacturing—0.6%
5,000	Invensys plc, 8.529%, 12/30/09		5,125,000
	Linpac Mouldings Ltd.,
1,037	6.24%, 4/16/12, Term B1		1,033,984
1,322	6.74%, 4/16/12, Term C1		1,323,273
			7,482,257
	Drugs & Medical Products—0.7%
	Warner Chilcott plc,
1,146	6.359%, 1/18/12		1,159,540
3,004	6.359%, 1/18/12, Term B		3,039,352
2,481	6.359%, 1/18/12, Term C		2,509,979
3,153	6.46%, 1/18/12, Term B		3,189,637
			9,898,508

8.31.05 | PIMCO Floating Rate Strategy Fund Annual Report 5

PIMCO Floating Rate Strategy Fund Schedule of Investments
August 31, 2005

Principal
Amount
(000)			Value
	Energy—2.8%
	Covanta Energy Corp.,
$     1,106	3.36%, 6/24/12	$	1,125,041
894	6.46%, 6/30/12, Term B		909,959
1,500	8.96%, 5/12/13, Term DHC		1,511,250
1,500	9.141%, 5/12/13, Term DHC		1,511,250
4,969	Dynegy Holdings, Inc., 7.54%, 5/28/10		5,000,791
	Foundation Coal Holdings, Inc.,
1,903	5.38%, 7/30/11, Term B		1,938,181
3,059	5.66%, 7/30/11, Term B		3,114,934
	Headwaters, Inc.,
11,559	5.87%, 4/30/11, Term B		11,723,147
267	7.75%, 4/30/11, Term B		270,947
1,000	9.02%, 9/1/12, Term C		1,014,167
	NRG Energy, Inc.,
4,156	3.39%, 12/24/11		4,209,936
5,296	5.255%, 12/24/11, Term B		5,364,662
21	5.365%, 12/24/11, Term B		21,050
			37,715,315
	Entertainment—1.2%
11,000	MGM Studios, 5.74%, 4/8/12, Term B		11,151,250
	Warner Music Group, Inc.,
1,571	5.52%, 2/28/11, Term B		1,589,335
1,388	5.64%, 2/27/11, Term B		1,404,095
1,402	5.83%, 2/27/11, Term B		1,418,278
1,158	5.86%, 2/27/11, Term B		1,171,707
			16,734,665
	Financial Services—1.3%
6,623	Global Cash Access LLC, 5.92%, 3/10/10, Term B		6,728,485
10,449	Refco Group Ltd., 5.669%, 8/5/11, Term B		10,578,379
			17,306,864
	Financing—0.5%
	Satbirds Finance SARL,
€     1,500	4.397%, 4/4/12, Term A		1,826,328
€     1,000	4.397%, 10/4/13 (g)		1,208,137
€     3,500	4.897%, 4/4/13, Term B		4,293,715
			7,328,180
	Food—0.1%
	Michael Foods, Inc.,
$     1,258	5.09% 11/30/10, Term B		1,279,583
112	5.859%, 11/30/10, Term B		113,504
			1,393,087
	Food & Beverage—0.1%
1,802	Commonwealth Brands, Inc., 7.00%, 8/28/07, Term B		1,836,276

6 PIMCO Floating Rate Strategy Fund Annual Report | 8.31.05

PIMCO Floating Rate Strategy Fund Schedule of Investments
August 31, 2005

Principal
Amount
(000)			Value
	Funeral Services—0.5%
	Alderwoods Group, Inc.,
$     1,713	5.296%, 9/17/09, Term B	$	1,738,610
2,227	5.48%, 9/17/08, Term B		2,260,193
1,644	5.609%, 9/17/08, Term B		1,669,066
559	5.84%, 9/17/08, Term B		567,346
			6,235,215
	Healthcare & Hospitals—3.4%
2,952	Community Health Systems, Inc., 5.61%, 8/19/11, Term B		2,997,031
20,000	DaVita, Inc., 6/17/12, Term B (f)		20,311,120
9,500	HEALTHSouth Corp., 8.57%, 6/9/10		9,612,812
	PacifiCare Health Systems, Inc.,
2,859	4.938%, 12/17/08		2,870,139
4,288	5.125%, 12/17/08		4,305,208
912	5.188%, 12/17/08		916,053
4,000	Psychiatric Solutions, Inc., 5.73%, 7/7/12, Term B		4,065,000
			45,077,363
	Hotels/Gaming—3.7%
	Aladdin Gaming, Inc.,
4,572	6.504%, 8/31/10, Term A		4,593,089
96	7.504%, 8/31/10, Term B		96,669
2,317	Ameristar Casinos, Inc., 5.50%, 12/20/06, Term B1		2,328,587
	Choctaw Resort Development Enterprise, Inc.,
157	5.63%, 11/4/11, Term B		158,820
9,112	5.91%, 11/4/11, Term B		9,219,941
	MotorCity Casino,
3,477	5.641%, 7/21/12, Term B		3,522,189
1,023	5.841%, 7/21/12, Term B		1,035,938
6,000	Penn National Gaming, Inc., 5/26/12, Term B (f)		6,094,686
9,385	Resorts International, Inc., 6.20%, 3/22/12, Term B		9,504,869
	Venetian Casino,
829	5.24%, 2/22/12, Term B		839,617
2,564	5.462%, 2/22/12, Term B		2,596,754
10,000	Wynn Resorts Ltd., 5.805%, 12/14/11, Term B		10,139,060
			50,130,219
	Machinery—0.8%
5,631	Agco Corp., 5.42%, 1/31/06, Term B		5,710,548
	Rexnord Corp.,
153	5.75%, 12/31/11, Term B		155,718
115	5.85%, 12/31/11, Term B		116,788
1,855	6.07%, 12/31/11, Term B		1,884,183
2,300	6.21%, 12/31/11, Term B		2,335,765
			10,203,002

8.31.05 | PIMCO Floating Rate Strategy Fund Annual Report 7

PIMCO Floating Rate Strategy Fund Schedule of Investments
August 31, 2005

Principal
Amount
(000)			Value
	Manufacturing—0.6%
	Berry Plastics, Corp.,
$     4,489	5.60%, 6/30/10	$	4,565,059
11	5.766%, 7/22/10		11,441
3,500	Xerium Technologies, Inc., 5.49%, 5/18/12, Term B		3,551,408
			8,127,908
	Measuring Instruments—0.4%
	Dresser Inc.,
4,397	5.438%, 10/29/11, Term B		4,478,623
1,085	5.49%, 10/29/11, Term B		1,104,746
			5,583,369
	Metals & Mining—0.7%
	Novelis, Inc.,
5,904	5.46%, 1/7/12, Term B1		5,987,699
3,399	5.46%, 1/7/12, Term B2		3,447,463
			9,435,162
	Multi-Media—3.6%
1,250	Atlantic Broadband, Inc., 6.11%, 8/4/12, Term B		1,273,438
953	Canwest Media, Inc., 5.823%, 8/1/09, Term E		966,426
	Charter Communications Operating LLC, 6.83%, 4/27/11, Term B
39	6.83%, 4/27/11, Term B		39,114
15,381	6.93%, 4/27/11, Term B		15,450,065
6,889	Insight Midwest Holdings LLC, 6.125%, 12/31/09, Term B (e)		6,918,924
	Primedia, Inc.,
4,091	6.438%, 6/30/09, Term B		4,100,449
2,475	8.00%, 12/31/09, Term C		2,485,056
4,329	Source Media, Inc., 5.74%, 11/8/11, Term B		4,394,353
8,978	Telcordia Technologies, Inc., 6.61%, 9/9/12, Term B		8,977,500
	Young Broadcasting, Inc.,
2,227	5.688%, 11/3/12, Term B		2,251,529
30	5.75%, 5/2/12, Term B		30,426
753	6.00%, 5/2/12, Term B		760,652
			47,647,932
	Oil & Gas—4.1%
	El Paso Corp.,
11,500	5.55%, 11/22/09, Term LC		11,654,135
21,588	6.438%, 11/22/09, Term B		21,935,500
	Kerr McGee Corp.,
8,000	5.79%, 5/1/11, Term B		8,052,504
4,000	5.85%, 5/1/07		4,016,784
3,691	Kinetic Concepts, Inc., 5.24%, 8/11/10, Term B		3,739,179
1,000	Premcor Refining Group, Inc., 5.255%, 4/14/09, Term LC		1,007,188
4,979	Universal Compression Holdings, Inc., 5.24%, 2/15/12, Term B		5,047,651
			55,452,941

8 PIMCO Floating Rate Strategy Fund Annual Report | 8.31.05

PIMCO Floating Rate Strategy Fund Schedule of Investments
August 31, 2005

Principal
Amount		Credit Rating
(000)		(Moody’s/S&P)*		Value
	Paper/Paper Products—0.2%
	Appleton Papers, Inc.,
$     927	5.55%, 6/9/10		$	937,637
995	5.73%, 6/11/10			1,006,790
	Boise Cascade Holdings LLC,
789	5.25%, 10/28/11, Term D			802,183
413	5.438%, 10/29/11, Term D			419,906
				3,166,516
	Printing/Publishing—0.9%
	RH Donnelly Corp.,
1,719	5.11%, 6/30/11, Term D			1,744,887
2,149	5.16%, 6/30/11, Term D			2,181,109
1,289	5.18%, 6/30/11, Term D			1,308,666
430	5.19%, 6/30/11, Term D			436,222
1,719	5.21%, 6/30/11, Term D			1,744,887
430	5.23%, 6/30/11, Term D			436,222
2,866	5.24%, 6/30/11, Term D			2,908,978
430	5.27%, 6/30/11, Term D			436,222
1,289	5.30%, 6/30/11, Term D			1,308,666
				12,505,859
	Real Estate—1.2%
	General Growth Properties, Inc.,
5,972	5.67%, 11/12/08, Term B			6,048,954
9,487	5.95%, 11/12/07, Term A			9,563,845
				15,612,799
	Recreation—1.8%
	Loews Cineplex Entertainment Corp.,
5,488	5.80%, 7/22/11			5,536,027
4,880	5.97%, 7/8/11			4,922,036
	Six Flags Theme Parks, Inc.,
2,452	6.28%, 6/30/09, Term B			2,480,809
10	6.41%, 6/30/09, Term B			10,156
1,513	6.50%, 6/30/09, Term B			1,530,736
	Worldspan L.P.,
333	5.438%, 2/11/10, Term B			330,113
842	6.313%, 2/11/10, Term B			836,285
842	6.375%, 2/11/10, Term B			836,285
1,464	6.438%, 2/11/10, Term B			1,452,495
399	6.50%, 2/11/10, Term B			396,135
6,180	6.563%, 2/11/10, Term B			6,133,212
				24,464,289
	Retail—2.9%
	Arby’s Restaurant Group, Inc.,
10,000	5.919%, 7/25/12, Term B			10,128,620
1,500	6.11%, 7/25/12, Term B			1,518,729
8,407	Dominos, Inc., 5.25%, 6/25/10, Term B			8,550,451
8,925	Jean Coutu Group, Inc., 5.938%, 7/30/11 UNIT			9,072,710
10,000	Neiman Marcus Bridge, zero coupon, 12/31/05 (f)(g)			9,979,817
				39,250,327

8.31.05 | PIMCO Floating Rate Strategy Fund Annual Report 9

PIMCO Floating Rate Strategy Fund Schedule of Investments
August 31, 2005

Principal
Amount
(000)			Value
	Semi-Conductors—0.4%
$     4,975	On Semiconductor Corp., 6.50%, 12/3/11, Term G	$	5,046,516
	Telecommunications—6.4%
	Alliance Atlantis Communications, Inc.,
82	4.84%, 10/19/11, Term B		83,130
2,237	5.41%, 10/19/11, Term B		2,270,234
5,000	American Towers, L.P., 4.27%, 2/28/11, Term A		5,032,815
	Centennial Cellular Communications Corp.,
1,128	5.63%, 1/20/11		1,146,843
3,383	5.63%, 2/9/11		3,440,529
3,758	5.74%, 1/20/11		3,822,810
376	5.77%, 1/20/11		382,281
241	6.11%, 1/20/11		244,660
	Consolidated Communications, Inc.,
3,574	5.815%, 9/18/11, Term B		3,632,519
3,177	6.052%, 9/18/11, Term B		3,228,905
2,000	Hawaiian Telcom Communications, Inc., 5.73%, 10/31/12, Term B (e)		2,028,438
	Mediacom Broadband LLC,
3,200	5.35%, 2/28/14, Term B		3,251,501
700	5.49%, 2/28/14, Term B		711,266
4,080	5.51%, 2/28/14, Term B		4,140,245
	Mediacomm Communications Corp.,
533	4.60%, 3/31/10, Term A		531,667
533	4.64%, 3/31/10, Term A		531,667
193	4.74%, 3/31/10, Term A		188,017
600	4.81%, 3/31/10, Term A		598,447
	New Skies Satellites, NV,
1,218	5.6875%, 5/4/11, Term B		1,235,439
6,724	5.875%, 5/4/11, Term B (e)		6,819,007
	PanAmSat Corp.,
3,023	5.359%, 8/20/09, Term A1		3,053,612
1,580	5.359%, 8/20/09, Term A2		1,596,643
	Qwest Corp.,
6,500	6.95%, 6/30/10, Term B		6,495,261
7,400	8.53%, 6/30/07, Term A		7,648,211
	Telewest Global Finance LLC,
2,550	4.244%, 11/2/12, Term B2		2,569,125
1,950	5.892%, 11/2/12, Term C2		1,959,317
15,000	UPC Distribution Holding B.V., 6.254%, 9/30/12, Term H2		15,162,885
	Valor Telecommunications Enterprises LLC,
1,502	5.24%, 2/14/12, Term B		1,522,328
342	5.42%, 2/14/12, Term B		347,198
1,976	5.811%, 2/14/12, Term B		2,003,063
			85,678,063
	Utilities—3.5%
	AES Corp.,
3,720	5.07%, 4/30/08, Term B		3,773,650
3,720	5.69%, 8/10/11, Term B		3,773,650

10 PIMCO Floating Rate Strategy Fund Annual Report | 8.31.05

PIMCO Floating Rate Strategy Fund Schedule of Investments
August 31, 2005

Principal
Amount		Credit Rating
(000)		(Moody’s/S&P)*		Value
	Utilities—(continued)
	Allegheny Energy, Inc.,
$      3,354	5.34%, 3/8/11, Term C		$	3,403,036
6,993	5.359%, 3/8/11, Term C			7,094,436
	Midwest Generation LLC,
5,095	4.50%, 4/27/11 Term B			5,153,914
95	5.47%, 4/27/11			95,927
86	5.809%, 4/27/11			87,330
467	5.809%, 4/27/11, Term B			472,224
604	5.814%, 4/27/11, Term B			611,402
2,000	5.961%, 4/27/11, Term B			2,034,000
	Reliant Resources, Inc.,
1,474	6.016%, 4/30/10			1,489,512
18,923	6.089%, 4/30/10			19,116,736
				47,105,817
	Waste Disposal—1.1%
	Allied Waste North America, Inc.,
4,039	2.00%, 1/15/12			4,079,871
1,615	5.37%, 1/15/12			1,631,796
3,635	5.50%, 1/15/12			3,671,542
1,696	5.52%, 1/15/12			1,713,127
2,019	5.65%, 1/15/12			2,039,745
1,616	5.67%, 1/15/12			1,631,796
				14,767,877
	Wholesale—0.1%
	Roundy’s, Inc.,
133	5.41%, 6/6/09, Term B1			134,831
588	5.59%, 6/6/09, Term B1			595,227
				730,058
	Total Senior Loans (cost—$827,783,227)			831,466,002
CORPORATE BONDS & NOTES (i)—15.2%
	Air-Conditioning—0.3%
4,250	Goodman Global Holding Co., Inc., 6.41%, 6/15/12, FRN (d)	B3/B-		4,250,000
	Airlines—0.5%
	JetBlue Airways Corp.,
4,000	6.89%, 5/15/10, Ser. 04-2, FRN	Ba1/BB+		4,029,620
2,114	7.66%, 3/15/08, Ser. 04-1, FRN	Ba1/BB+		2,166,753
				6,196,373
	Computer Services—0.3%
4,000	SunGard Data Systems, Inc., 8.525%, 8/15/13, FRN (b)(d)	B3/B-		4,160,000
	Financing—2.1%
5,750	Borden US Finance Corp., 8.349%, 7/15/10, FRN (d)	B3/B-		5,807,500
	Ford Motor Credit Co.,
2,000	4.389%, 3/21/07, FRN	Baa3/BB+		1,974,096
10,000	5.169%, 1/15/10, FRN	Baa3/BB+		9,347,200

8.31.05 | PIMCO Floating Rate Strategy Fund Annual Report 11

PIMCO Floating Rate Strategy Fund Schedule of Investments
August 31, 2005

Principal
Amount		Credit Rating
(000)		(Moody’s/S&P)*		Value
	Financing—(continued)
	General Motors Acceptance Corp.,
$     5,000	5.53%, 12/1/14, FRN	Ba1/BB	$	4,359,050
4,000	6.125%, 9/15/06	Ba1/BB		4,016,452
3,098	Simsbury CLO Ltd., 3.92%, 9/24/11, FRN (d)(g)	Aaa/AAA		3,070,528
				28,574,826
	Multi-Media—2.5%
€     4,000	Cablecom Luxembourg, 4.869%, 4/15/12, FRN (d)(g)	B2/B		4,973,429
$     7,000	Cablevision Systems Corp., 7.89%, 4/1/09, Ser. B, FRN	B3/B+		7,262,500
	CCO Holdings LLC,
6,000	7.535%, 12/15/10, FRN	B3/CCC-		5,970,000
2,000	8.75%, 11/15/13	B3/CCC-		1,995,000
8,000	Charter Communications Holdings II LLC, 10.25%, 9/15/10	Caa1/CCC-		8,300,000
5,500	Emmis Communications Corp., 9.314%, 6/15/12, FRN	B3/B-		5,596,250
				34,097,179
	Oil & Gas—0.2%
2,500	Gaz Capital, 9.125%, 4/25/07	NR/BB-		2,676,750
	Paper/Paper Products—1.1%
	Abitibi-Consolidated, Inc.,
8,000	6.91%, 6/15/11 FRN	Ba3/BB-		8,040,000
2,000	7.875%, 8/1/09 FRN	Ba3/BB-		2,020,000
4,000	Bowater, Inc., 6.41%, 3/15/10, FRN	Ba3/BB		4,060,000
				14,120,000
	Semi-Conductors—0.4%
5,500	MagnaChip Semiconductor Finance Co.,
	6.66%, 12/15/11, FRN (d)	Ba3/B+		5,555,000
	Special Purpose Entity—1.1%
9,900	Dow Jones CDX US High Yield, 8.25%, 6/29/10, Ser. 4-T1 (d)(h)	B3/NR		10,067,062
4,500	Universal City Florida Holding Co., 8.443%, 5/1/10, FRN	B3/B-		4,736,250
				14,803,312
	Telecommunications—6.3%
3,515	Calpoint Receivable Structured Trust, 7.44%, 12/10/06 (d)	Caa2/NR		3,532,776
5,000	Dobson Cellular Systems, Inc., 8.443%, 11/1/11, FRN	B2/B-		5,225,000
8,499	Echostar DBS Corp., 6.754%, 10/1/08, FRN	Ba3/BB-		8,722,099
5,000	Hawaiian Telcom Communications, Inc.,
	8.914%, 5/1/13, FRN (d)	B3/B-		5,150,000
5,425	Intelsat Bermuda Ltd., 8.695%, 1/15/12, FRN (d)	B2/B+		5,547,063
2,000	New Skies Satellites NV, 8.539%, 11/1/11, FRN	B3/B-		2,085,000
5,000	Qwest Capital Funding, Inc., 7.90%, 8/15/10	Caa2/B		5,037,500
25,650	Qwest Communications International, Inc.,
	7.29%, 2/15/09, FRN	B3/B		25,650,000
6,000	Qwest Corp., 6.671%, 6/15/13, FRN (d)	Ba3/BB-		6,315,000
7,750	Rogers Wireless Communications, Inc.,
	6.535%, 12/15/10, FRN	Ba3/BB		8,118,125
3,500	Rural Cellular Corp., 7.91%, 3/15/10, FRN	B2/B-		3,640,000
5,820	Time Warner Telecom Holdings, Inc., 7.79%, 2/15/11, FRN	B1/B		5,994,600
				85,017,163

12 PIMCO Floating Rate Strategy Fund Annual Report | 8.31.05

PIMCO Floating Rate Strategy Fund Schedule of Investments
August 31, 2005

Principal
Amount		Credit Rating
(000)		(Moody’s/S&P)*		Value
	Utilities—0.4%
$      5,000	NorthWestern Corp., 7.30%, 12/1/06 (d)	Ba1/BB+	$	5,156,895
	Total Corporate Bonds & Notes (cost—$204,002,038)			204,607,498
SOVEREIGN DEBT OBLIGATIONS—3.3%
	Brazil—3.3%
	Federal Republic of Brazil,
16,471	4.313%, 4/15/12, FRN (i)	B1/BB-		15,853,145
15,832	8.00%, 4/15/14 (i)	B1/BB-		15,991,469
10,000	11.00%, 8/17/40 (i)	B1/BB-		11,942,500
	Total Sovereign Debt Obligations (cost—$42,923,669)			43,787,114
MORTGAGE-BACKED SECURITIES (i)—3.0%
	Countrywide Home Loan Mortgage Pass Through Trust,
4,306	3.931%, 4/25/35, FRN	Aaa/AAA		4,306,455
5,951	3.971%, 2/25/35, FRN	Aaa/AAA		5,958,362
6,221	3.981%, 2/25/35, FRN	Aaa/AAA		6,219,865
4,013	Master Adjustable Rate Mortgage Trust,
	3.787%, 11/21/34, FRN	Aaa/AAA		3,999,158
	Washington Mutual, Inc.,
11,096	3.951%, 1/25/45, FRN	Aaa/AAA		11,106,945
9,444	3.961%, 1/25/45, FRN	Aaa/AAA		9,443,110
	Total Mortgage-Backed Securities (cost—$41,034,985)			41,033,895
ASSET-BACKED SECURITIES (i)—2.7%
1,388	Accredited Mortgage Loan Trust, 3.791%, 1/25/35, FRN	Aaa/AAA		1,389,353
609	Amortizing Residential Collateral Trust,
	4.121%, 12/25/32, FRN	Aaa/AAA		610,232
1,383	Asset Backed Securities Corp. Home Equity Loan Trust,
	3.801%, 9/25/34, FRN	Aaa/AAA		1,384,312
	Bear Stearns Asset Backed Securities, Inc.,
4,701	3.811%, 12/25/42, FRN	Aaa/AAA		4,701,940
7,965	4.091%, 12/25/33, FRN	Aaa/AAA		7,993,077
1,791	Chase Funding Loan Acquisition Trust, 3.971%, 1/25/33, FRN	Aaa/AAA		1,794,928
3,144	CIT Group Home Equity Loan Trust, 3.911%, 6/25/33, FRN	Aaa/AAA		3,149,995
5,341	Countrywide Asset-Backed Certificates,
	3.791%, 10/25/23, FRN	Aaa/AAA		5,344,370
102	Credit-Based Asset Servicing and Securitization,
	3.981%, 2/25/33, FRN	Aaa/AAA		102,454
2,338	Fremont Home Loan Trust, 3.801%, 3/25/35, FRN	Aaa/AAA		2,339,600
112	GSAMP Trust, 3.791%, 8/25/34, FRN	Aaa/NR		112,019
1,148	Indymac Home Equity Asset-Backed Trust,
	3.801%, 7/25/34, FRN	Aaa/AAA		1,148,632
2,054	Long Beach Mortgage Loan Trust, 3.961%, 7/25/33, FRN	Aaa/AAA		2,057,402
2,706	Salomon Brothers Mortgage Securities VII,
	3.941%, 3/25/32, FRN	NR/AAA		2,714,131

8.31.05 | PIMCO Floating Rate Strategy Fund Annual Report 13

PIMCO Floating Rate Strategy Fund Schedule of Investments
August 31, 2005

Principal
Amount		Credit Rating
(000)		(Moody’s/S&P)*		Value
ASSET-BACKED SECURITIES (i)—(continued)
$      948	Wells Fargo Home Equity Trust, 3.801%, 6/25/19, FRN	Aaa/AAA	$	948,576
	Total Asset-Backed Securities (cost—$35,742,934)			35,791,021
PREFERRED STOCK (i)—0.1%
Shares
	Finance—0.1%
17,600	Fannie Mae, 7.00%, Ser. O, FRN (cost—$880,000)	Aa3/AA-		986,700
SHORT-TERM INVESTMENTS—13.7%
Principal
Amount
(000)
	Commercial Paper (i)—5.6%
	Banking—2.8%
$      6,100	Rabobank USA Financial Corp., 3.54%, 9/1/05	P-1/A-1+		6,100,000
	Skandinaviska Enskilda Banken,
21,400	3.61%, 11/2/05	NR/NR		21,261,970
10,500	3.71%, 11/17/05	NR/NR		10,415,370
				37,777,340
	Financial Services—2.8%
	UBS Finance, Inc.,
1,000	3.255%, 9/26/05	P-1/A-1+		997,740
1,000	3.285%, 10/3/05	P-1/A-1+		997,080
1,500	3.56%, 9/1/05	P-1/A-1+		1,500,000
35,000	3.76%, 12/1/05	P-1/A-1+		34,664,350
				38,159,170
	Total Commercial Paper (cost—$75,945,795)			75,936,510
SOVEREIGN DEBT OBLIGATIONS (e)(i)—4.2%
	Germany—4.2%
€      45,600	Federal Republic of Germany,
	2.75%, 12/16/05 (cost—$55,631,627)	Aaa/NR		56,173,321
U.S. GOVERNMENT AGENCY SECURITIES (i)—1.0%
$      13,300	Freddie Mac, 3.579%, 12/12/05 (cost—$13,160,571)	NR/NR		13,156,493
U.S. TREASURY BILLS (i)—1.5%
20,340	2.90%-3.30%,9/1/05-9/15/05 (cost—$20,317,145)			20,317,145
CORPORATE NOTES (i)—0.3%
	Financing—0.2%
3,000	General Motors Acceptance Corp., 4.677%, 5/18/06, FRN	Ba1/BB		2,993,379
	Paper/Paper Products—0.1%
775	Smurfit Capital Funding plc, 6.75%, 11/20/05	B1/BB-		778,875
	Total Corporate Notes (cost—$3,775,374)			3,772,254

14 PIMCO Floating Rate Strategy Fund Annual Report | 8.31.05

PIMCO Floating Rate Strategy Fund Schedule of Investments
August 31, 2005

Principal
Amount		Credit Rating
(000)		(Moody’s/S&P)*		Value
REPURCHASE AGREEMENTS—1.1%
$     9,649	State Street Bank & Trust Co.,
	dated 8/31/2005, 3.15%, due 9/1/2005,
	proceeds $9,649,844; collateralized by
	U.S. Treasury Note, 3.875%, 7/31/07,
	valued at $9,846,330 with accrued interest		$	9,649,000
5,000	Credit Suisse First Boston,
	dated 8/31/2005, 3.40%, due 9/1/2005,
	proceeds $5,000,472; collateralized by
	U.S. Treasury Note, 4.25%, 11/15/13,
	valued at $5,125,416 with accrued interest			5,000,000
	Total Repurchase Agreements (cost—$14,649,000)			14,649,000
	Total Short-Term Investments (cost—$183,479,512)			184,004,723
OPTIONS PURCHASED (j)—0.0%
Contracts
	Call Options—0.0%
	U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade,
515	strike price $118, expires 11/22/05			8,047
	Put Options—0.0%
	Eurodollar Futures, Chicago Mercantile Exchange,
405	strike price $93.75, expires 9/19/05			2,531
	U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade,
2,585	strike price $102, expires 11/22/05			40,391
				42,922
	Total Options Purchased (cost—$62,563)			50,969
	Total Investments before options written
	(cost—$1,335,908,928)—100.0%			1,341,727,922
OPTIONS WRITTEN (j)—(0.0)%
	Call Options—(0.0)%
	Swap Option 3 Month LIBOR,
4,600,000	strike price $3.85, expires 9/23/05			(143	)
	U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade,
640	strike price $113, expires 9/23/05			(150,000	)
515	strike price $114, expires 11/22/05			(201,172	)
820	strike price $115, expires 11/22/05			(166,562	)
				(517,877	)

8.31.05 | PIMCO Floating Rate Strategy Fund Annual Report 15

PIMCO Floating Rate Strategy Fund Schedule of Investments
August 31, 2005

Contracts			Value
	Put Options—(0.0)%
	Swap Option 3 Month LIBOR,
4,600,000	strike price $4.50, expires 9/23/05	$	(575	)
	U.S. Treasury Notes 10 yr. Futures, Chicago Board of Trade,
1,060	strike price $107, expires 11/22/05		(66,250	)
640	strike price $108, expires 9/23/05		(10,000	)
885	strike price $108, expires 11/22/05		(96,797	)
			(173,622	)
	Total Options Written (premiums received—$1,412,922)		(691,499	)
	Total Investments net of options written
	(cost-$1,334,496,006)—100.0%	$	1,341,036,423

*	Unaudited
(a)	Private Placement. Restricted as to resale and may not have a readily available market.
(b)	Illiquid security.
(c)	These securities generally pay interest at rates which are periodically pre-determined by reference to a base lending rate plus a premium. These base lending rates are generally either the lending rate offered by one or more major European banks, such as the LIBOR or the prime rate offered by one or more major United States banks, or the certificate of deposit rate. These securities are generally considered to be restricted as the Fund is ordinarily contractually obligated to receive approval from the Agent bank and/or borrower prior to disposition. Remaining maturities of senior loans may be less than the stated maturities shown as a result of contractual or optional payments by the borrower. Such prepayments cannot be predicted with certainty.
(d)	144A Security — Security exempt from registration, under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, typically only to qualified institutional buyers. Unless otherwise indicated, these securities are not considered to be illiquid.
(e)	When-issued or delayed-delivery security. To be settled/delivered after August 31, 2005.
(f)	Unsettled security, coupon rate undetermined at August 31, 2005.
(g)	Fair-valued security.
(h)	Credit-linked trust certificate.
(i)	All or partial amount segregated as collateral for futures contracts, when-issued or delayed-delivery securities.
(j)	Non-income producing.

Glossary:
€ — Euros
FRN — Floating Rate Note. The interest rate disclosed reflects the rate in effect on August 31, 2005.
LIBOR — London Inter-Bank Offered Rate
NR — Not Rated
UNIT — More than one class of securities traded together.

16 PIMCO Floating Rate Strategy Fund Annual Report | 8.31.05 | See accompanying Notes to Financial Statements

PIMCO Floating Rate Strategy Fund Statement of Assets and Liabilities
August 31, 2005

Assets:
Investments, at value (cost—$1,335,908,928)	$	1,341,727,922
Foreign currency (cost—$4,513)		4,516
Unrealized appreciation on swaps		39,156,240
Receivable for investments sold		12,992,006
Interest receivable		9,814,868
Premium for swaps purchased		297,255
Unrealized appreciation on unfunded loan commitments		135,662
Unrealized appreciation on forward foreign currency contracts		94,807
Prepaid expenses		54,805
Total Assets		1,404,278,081
Liabilities:
Payable for investments purchased		72,581,864
Premium for swaps sold		25,214,615
Unrealized depreciation on swaps		28,110,019
Dividends payable to common and preferred shareholders		4,669,917
Payable to custodian		2,377,600
Investment management fees payable		809,148
Options written, at value (premiums received—$1,412,922)		691,499
Unrealized depreciation of forward foreign currency contracts		269,916
Deferred facility fees		235,701
Accrued expenses		223,841
Total Liabilities		135,184,120
Preferred shares ($0.00001 par value and $25,000 net asset and liquidation value per
share applicable to an aggregate of 19,200 shares issued and outstanding)		480,000,000
Net Assets Applicable to Common Shareholders	$	789,093,961
Composition of Net Assets Applicable to Common Shareholders:
Common Stock:
Par value ($0.00001 per share, applicable to 41,582,884 shares issued and outstanding)	$	416
Paid-in-capital in excess of par		787,483,157
Distributions in excess of net investment income		(4,497,636	)
Accumulated net realized loss on investments		(11,251,308	)
Net unrealized appreciation of investments, options written, swaps,
foreign currency transactions and unfunded loan commitments		17,359,332
Net Assets Applicable to Common Shareholders	$	789,093,961
Net Asset Value Per Common Share		$18.98

See accompanying Notes to Financial Statements | 8.31.05 | PIMCO Floating Rate Strategy Fund Annual Report 17

PIMCO Floating Rate Strategy Fund Statement of Operations
For the period October 29, 2004* through August 31, 2005

Investment Income:
Interest	$	44,936,441
Facility and other fee income		63,542
Dividends		38,536
Total Investment Income		45,038,519
Expenses:
Investment management fees		7,337,506
Auction agent fees and commissions		823,888
Custodian and accounting agent fees		290,036
Audit and tax services		126,034
Reports and notices to shareholders		73,261
New York Stock Exchange listing fees		34,801
Trustees’ fees and expenses		30,183
Organizational expenses		25,000
Transfer agent fees		20,512
Legal fees		20,112
Investor relations		8,804
Insurance expense		2,992
Miscellaneous		4,085
Total expenses		8,797,214
Less: custody credits earned on cash balances		(106,382	)
Net expenses		8,690,832
Net Investment Income		36,347,687
Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		3,001,896
Futures contracts		171,838
Options written		106,997
Swaps		(8,330,935	)
Foreign currency transactions		560,222
Net unrealized appreciation (depreciation) of:
Investments		5,818,994
Options written		721,423
Swaps		11,046,221
Foreign currency transactions		(362,968	)
Unfunded loan commitments		135,662
Net realized and unrealized gain on investments, futures contracts, options written, swaps,
foreign currency transactions and unfunded loan commitments		12,869,350
Net Increase in Net Assets Resulting from Investment Operations		49,217,037
Dividends on Preferred Shares from Net Investment Income		(9,877,326	)
Net Increase in Net Assets Applicable to Common Shareholders
Resulting from Investment Operations	$	39,339,711

* Commencement of operations

18 PIMCO Floating Rate Strategy Fund Annual Report | 8.31.05 | See accompanying Notes to Financial Statements

PIMCO Floating Rate Strategy Fund	Statement of Changes in Net Assets
	Applicable to Common Shareholders

		For the Period
		October 29, 2004*
		through
		August 31, 2005
Investment Operations:
Net investment income	$	36,347,687
Net realized loss on investments, futures contracts, options written,
swaps and foreign currency transactions		(4,489,982	)
Net unrealized appreciation of investments, futures contracts, options
written, swaps, foreign currency transactions and unfunded loan commitments		17,359,332
Net increase in net assets resulting from investment operations		49,217,037
Dividends on Preferred Shares from Net Investment Income		(9,877,326	)
Net increase in net assets applicable to common shareholders
resulting from investment operations		39,339,711
Dividends to Common Shareholders from Net Investment Income		(37,754,323	)
Capital Share Transactions:
Net proceeds from the sale of common stock		788,830,000
Preferred shares underwriting discount charged to paid-in capital in excess of par		(4,800,000	)
Common stock and preferred shares offering costs charged to paid-in capital in excess of par		(1,912,898	)
Reinvestment of dividends		5,291,463
Net increase from capital transactions		787,408,565
Total increase in net assets applicable to common shareholders		788,993,953
Net Assets Applicable to Common Shareholders:
Beginning of period		100,008
End of period (including distributions in excess of net investment income of $4,497,636)	$	789,093,961
Common Shares Issued and Reinvested:
Issued		41,300,000
Issued in reinvestment of dividends		277,648
Net Increase		41,577,648

* Commencement of operations

See accompanying Notes to Financial Statements | 8.31.05 | PIMCO Floating Rate Strategy Fund Annual Report 19

PIMCO Floating Rate Strategy Fund Statement of Cash Flows
For the period October 29, 2004* through August 31, 2005

Cash Flows used for Operating Activities
Purchases of long-term investments	$	(1,573,151,878	)
Proceeds from sales of long-term investments		473,591,817
Interest, dividends and facility and other fee income received		33,949,727
Net cash provided by options written		6,838,956
Net cash provided by swap transactions		16,586,425
Operating expenses paid		(7,712,648	)
Net cash provided by futures transactions		171,838
Net realized gain on foreign currency transactions		560,222
Net increase in short-term investments		(177,754,384	)
Net cash used for operating activities		(1,226,919,925	)
Cash Flows from Financing Activities:
Proceeds from common shares sold		788,830,000
Issuance of preferred shares		480,000,000
Common and preferred shares offering costs and underwriting discount paid		(6,712,898	)
Cash dividends paid (excluding reinvestment of dividends of $5,291,463)		(37,670,269	)
Net cash provided by financing activities		1,224,446,833
Net decrease in cash		(2,473,092	)
Cash at beginning of period		100,008
Payable to custodian at end of period	$	(2,373,084	)
Reconciliation of Net Increase in Net Assets From Investment Operations
to Net Cash Used for Operating Activities:
Net increase in net assets resulting from investment operations	$	49,217,037
Increase in receivable for investments sold		(12,992,006	)
Increase in interest receivable		(9,814,868	)
Increase in premium for swaps purchased		(297,255	)
Increase in premium for swaps sold		25,214,615
Increase in premium for options written		1,412,922
Increase in prepaid expenses		(54,805	)
Increase in Investment Management fees payable		809,148
Increase in net unrealized appreciation on swaps		(11,046,221	)
Increase in net unrealized depreciation on forward foreign currency transactions		175,109
Increase in net unrealized appreciation on unfunded loan commitments		(135,662	)
Increase in unrealized appreciation on options written		(721,423	)
Increase in accrued expenses		223,841
Increase in deferred facility fees		235,701
Increase in payable for investments purchased		72,581,864
Net increase in investments		(1,341,727,922	)
Net cash used for operating activities	$	(1,226,919,925	)

* Commencement of operations

20 PIMCO Floating Rate Strategy Fund Annual Report | 8.31.05 | See accompanying Notes to Financial Statements

PIMCO Floating Rate Strategy Fund Notes to Financial Statements
August 31, 2005

1. Organization and Significant Accounting Policies
PIMCO Floating Rate Strategy Fund (the “Fund”) was organized as a Massachusetts business trust on June 30, 2004. Prior to commencing operations on October 29, 2004, the Fund had no operations other than matters relating to its organization and registration as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended, and the sale and issuance of 5,236 shares of beneficial interest at an aggregate purchase price of $100,008 to Allianz Global Investors of America L.P (“Allianz Global”). Allianz Global Investors Fund Management LLC (the “Investment Manager”), formerly PA Fund Management LLC, serves as the Fund’s Investment Manager and is an indirect, wholly-owned subsidiary of Allianz Global. Allianz Global is an indirect, majority-owned subsidiary of Allianz AG, a publicly traded insurance and financial services company. The Fund invests substantially all of its assets in a diversified portfolio of floating rate debt instruments, a substantial portion of which will be senior floating rate loans. There is an unlimited number of $0.00001 per share par value common stock authorized.

The Fund issued 37,000,000 shares of common stock in its initial public offering. An additional 4,300,000 shares were issued in connection with the underwriter’s over-allotment option. These shares were all issued at $20.00 per share before an underwriting discount of $0.90 per share. Common offering costs of $1,339,026 (representing $0.032 per share) were offset against the proceeds of the offering and over-allotment option and have been charged to paid-in capital in excess of par. The Investment Manager agreed to pay all common share offering costs (other than the sales load) and organizational expenses of approximately $25,000 exceeding $0.04 per common share. In addition, the underwriters’ commission and offering costs associated with the issuance of Preferred Shares in the amounts of $4,800,000 and $573,872, respectively, have been charged to paid-in capital in excess of par.

The Fund’s investment objective is to seek high current income, consistent with the preservation of capital by investing primarily in floating rate debt instruments, a substantial portion of which will be senior floating rate loans. The ability of the issuers of the Fund’s investments to meet their obligations may be affected by economic developments in a specific industry.

The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from these estimates.

In the normal course of business the Fund enters into contracts that contain a variety of representations which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet been asserted. However, the Fund expects the risk of any loss to be remote.

The following is a summary of significant accounting policies followed by the Fund:

(a) Valuation of Investments
Portfolio securities and other financial instruments for which market quotations are readily available are stated at market value. Portfolio securities and other financial instruments for which market quotations are not readily available or if a development/event occurs that may significantly impact the value of a security, may be fair-valued, in good faith, pursuant to guidelines established by the Board of Trustees, including certain fixed income securities which may be valued with reference to securities whose prices are more readily available. The Fund’s investments are valued on the last business day of each week by an independent pricing service, dealer quotations, or are valued at the last sale price on the exchange that is the primary market for such securities, or the last quoted bid price for those securities for which the over-the-counter market is the primary market or for listed securities in which there were no sales. Independent pricing services use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. The Fund’s investments in senior floating rate loans (“Senior Loans”) for which a secondary market exists will be valued at the mean of the last available bid and asked prices in the market for such Senior Loans, as provided by an independent pricing service. Other Senior Loans are valued at fair-value by Pacific Investment Management Company LLC (the “Sub-Adviser”). Such procedures by the Sub-Adviser include consideration and evaluation of: (1) the creditworthiness of the borrower and any intermediate participants; (2) the term of the Senior Loan; (3) recent prices in the market for similar loans, if any; (4) recent prices in the market for loans of similar quality, coupon rate, and period until next interest rate reset and maturity; and (5) general economic and market conditions affecting the fair value of the Senior Loan. Exchange traded options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily until settlement at the forward settlement value. Short-term investments maturing in 60 days or less are valued at amortized

8.31.05 | PIMCO Floating Rate Strategy Fund Annual Report 21

PIMCO Floating Rate Strategy Fund Notes to Financial Statements
August 31, 2005

1. Organization and Significant Accounting Policies (continued)

(a) Valuation of Investments (continued)

cost, if their original maturity was 60 days or less, or by amortizing their value on the 61st day prior to maturity, if the original term to maturity exceeded 60 days. The prices used by the Fund to value securities may differ from the value that would be realized if the securities were sold and the differences could be material to the financial statements. The Fund’s net asset value is determined weekly on the last business day of the week at the close of regular trading (normally, 4:00 p.m. Eastern time) on the New York Stock Exchange.

(b) Investment Transactions and Investment Income
Investment transactions are accounted for on the trade date. Securities purchased and sold on a when-issued or delayed-delivery basis may be settled a month or more after the trade date. Realized gains and losses on investments are determined on the identified cost basis. Interest income is recorded on an accrual basis. Discounts or premiums on debt securities purchased are accreted or amortized to interest income over the lives of the respective securities using the effective interest method. Dividend income is recorded on the ex-dividend date. Facility fees and other fees (such as origination fees) received by the Fund are amortized as income over the expected term of the loan. Commitment fees received by the Fund relating to unfunded purchase commitments are deferred and amortized to facility fee income over the period of the commitment.

(c) Federal Income Taxes
The Fund intends to distribute all of its taxable income and to comply with the other requirements of the U.S. Internal Revenue Code of 1986, as amended, applicable to regulated investment companies. Accordingly, no provision for U.S. federal income taxes is required. In addition, by distributing substantially all of its ordinary income and long-term capital gains, if any, during each calendar year the Fund intends not to be subject to U.S. federal excise tax.

(d) Dividends and Distributions – Common Stock
The Fund declares dividends from net investment income monthly to common shareholders. Distributions of net realized capital gains, if any, are paid at least annually. The Fund records dividends and distributions to its shareholders on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from generally accepted accounting principles. These “book-tax” differences are considered either temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal income tax treatment; temporary differences do not require reclassification. For the period October 29, 2004 (commencement of operations) through August, 31, 2005, permanent differences of $6,761,326 are primarily attributable to the differing treatment of foreign currency transactions, swap payments, paydowns and consent fees. There was also a reclass of a permanent difference of $25,000 to paid-in capital due to non-deductible organizational costs. To the extent dividends and/or distributions exceed current and accumulated earnings and profits for federal income tax purposes; they are reported as dividends and/or distributions of paid-in capital in excess of par.

Net investment income and net realized gains differ for financial, statement and tax purposes primarily due to the treatment of amounts received under swap agreements. For the period October 29, 2004 (commencement of operations) through August 31, 2005, the Fund received $6,743,249 from swap agreements which are treated as net realized gain (loss) for financial statement purposes and as net income (loss) for federal income tax purposes.

(e) Foreign Currency Translation
The Fund’s accounting records are maintained in U.S. dollars as follows: (1) the foreign currency market value of investments and other assets and liabilities denominated in foreign currency are translated at the prevailing exchange rate at the end of the period; and (2) purchases and sales, income and expenses are translated at the prevailing exchange rate on the respective dates of such transactions. The resulting net foreign currency gain or loss is included in the Statement of Operations.

The Fund does not generally isolate that portion of the results of operations arising as a result of changes in the foreign currency exchange rates from the fluctuations arising from changes in the market prices of securities.

Accordingly, such foreign currency gain (loss) is included in net realized and unrealized gain (loss) on investments. However, the Fund does isolate the effect of fluctuations in foreign currency exchange rates when determining the gain or loss upon the sale or maturity of foreign currency denominated debt obligations pursuant to U.S. federal income tax regulations; such amount is categorized as foreign currency gain or loss for both financial reporting and income tax reporting purposes.

22 PIMCO Floating Rate Strategy Fund Annual Report | 8.31.05

PIMCO Floating Rate Strategy Fund Notes to Financial Statements
August 31, 2005

1. Organization and Significant Accounting Policies (continued)

(f) Senior Loans
The Fund purchases assignments of Senior Loans originated, negotiated and structured by a U.S. or foreign commercial bank, insurance company, finance company or other financial institution (the “Agent”) for a lending syndicate of financial institutions (the “Lender”). When purchasing an assignment, the Fund succeeds all the rights and obligations under the loan agreement with the same rights and obligations as the assigning Lender. Assignments may, however, be arranged through private negotiations between potential assignees and potential assignors, and the rights and obligations acquired by the purchaser of an assignment may differ from, and be more limited than, those held by the assigning Lender.

(g) Option Transactions
The Fund may purchase and write (sell) put and call options for hedging purposes, risk management purposes or as a part of its investment strategy. The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of premium and change in market value should the counterparty not perform under the contract. Put and call options purchased are accounted for in the same manner as portfolio securities. The cost of securities acquired through the exercise of call options is increased by the premiums paid. The proceeds from the securities sold through the exercise of put options is decreased by the premiums paid.

When an option is written, the premium received is recorded as an asset with an equal liability and is subsequently marked to market to reflect the current market value of the option written. These liabilities are reflected as options written in the Statement of Assets and Liabilities. Premiums received from writing options which expire unexercised are recorded on the expiration date as a realized gain. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium is less than the amount paid for the closing purchase transactions, as a realized loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether there has been a realized gain or loss. If a put option is exercised, the premium reduces the cost basis of the security. In writing an option, the Fund bears the market risk of an unfavorable change in the price of the security underlying the written option. Exercise of an written option could result in the Fund purchasing a security at a price different from the current market.

(h) Interest Rate/Credit Default Swaps
The Fund enters into interest rate and credit default swap contracts (“swaps”) for investment purposes, to manage its interest rate and credit risk or to add leverage.

As a seller in the credit default swap contract, the Fund would be required to pay the notional amount or other agreed-upon value of a referenced debt obligation to the counterparty in the event of a default by a third party, such as a U.S. or foreign corporate issuer, on the referenced debt obligation. In return, the Fund would receive from the counterparty a periodic stream of payments over the term of the contract provided that no event of default has occurred. If no default occurs, the Fund would keep the stream of payments and would have no payment obligations. Such periodic payments are accrued daily and recorded as realized gain (loss).

The Fund may also purchase credit default swap contracts in order to hedge against the risk of default of debt securities held, in which case the Fund would function as the counterparty referenced in the preceding paragraph. As a purchaser of a credit default swap contract, the Fund would receive the notional amount or other agreed upon value of a referenced debt obligation from the counterparty in the event of default by a third party, such as a U.S. or foreign corporate issuer on the referenced obligation. In return, the Fund would make periodic payments to the counterparty over the term of the contract provided no event of default has occurred. Such periodic payments are accrued daily and recorded as realized gain (loss).

Interest rate swap agreements involve the exchange by the Fund with a counterparty of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal. Net periodic payments received by the Fund are included as part of realized gain/(loss) and or change in unrealized appreciation/(depreciation) on the Statement of Operations.

Swaps are marked to market daily by the Sub-Adviser based upon quotations from market makers and the change in value, if any, is recorded as unrealized appreciation or depreciation in the Fund’s Statement of Operations. For a credit default swap sold by the Fund, payment of the agreed upon amount made by the Fund in the event of default of the referenced debt obligation is recorded as the cost of the referenced debt obligation purchased/received. For a credit default swap purchased by the Fund, the agreed upon amount received by the Fund in the event of default of the referenced debt obligation

8.31.05 | PIMCO Floating Rate Strategy Fund Annual Report 23

PIMCO Floating Rate Strategy Fund Notes to Financial Statements
August 31, 2005

1. Organization and Significant Accounting Policies (continued)

(h) Interest Rate/Credit Default Swaps (continued)

is recorded as proceeds from sale/delivery of the referenced debt obligation and the resulting gain or loss realized on the referenced debt obligation is recorded as such by the Fund.

Entering into swaps involves, to varying degrees, elements of credit, market and documentation risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in net interest rates.

(i) Futures Contracts
A futures contract is an agreement between two parties to buy and sell a financial instrument at a set price on a future date. Upon entering into such a contract, the Fund is required to pledge to the broker an amount of cash or securities equal to the minimum “initial margin” requirements of the exchange. Pursuant to the contracts, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contracts. Such receipts or payments are known as “variation margin” and are recorded by the Fund as unrealized appreciation or depreciation. When the contracts are closed, the Fund records a realized gain or loss equal to the difference between the value of the contracts at the time they were opened and the value at the time they were closed. Any unrealized appreciation or depreciation recorded is simultaneously reversed. The use of futures transactions involves the risk of an imperfect correlation in the movements in the price of futures contracts, interest rates and the underlying hedged assets, and the possible inability of counterparties to meet the terms of their contracts.

(j) Forward Foreign Currency Contracts
A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a future date. The Fund may enter into forward foreign currency contracts for the purpose of hedging against foreign currency risk arising from the investment or anticipated investment in securities denominated in foreign currencies. The Fund may also enter these contracts for purposes of increasing exposure to a foreign currency or to shift exposure to foreign currency fluctuations from one country to another. The market value of a forward foreign currency contract fluctuates with changes in forward currency exchange rates. All commitments are marked to market daily at the applicable exchange rates and any resulting unrealized appreciation or depreciation is recorded. Realized gains or losses are recorded at the time the forward contract matures or by delivery of the currency. Risks may arise upon entering these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

(k) Credit-Linked Trust Certificates
Credit-linked trust certificates are investments in a limited purpose trust or other vehicle formed under state law which, in turn, invests in a basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order to provide exposure to the high yield or another fixed income market.

Similar to an investment in a bond, investments in these credit-linked trust certificates represent the right to receive periodic income payments (in the form of distributions) and payment of principal at the end of the term of the certificate. However, these payments are conditioned on the trust’s receipt of payments from, and the trust’s potential obligations to, the counterparties to the derivative instruments and other securities in which the trust invests.

(l) Repurchase Agreements
The Fund enters into transactions with its custodian bank or securities brokerage firms whereby it purchases securities under agreements to resell at an agreed upon price and date (“repurchase agreements”). Such agreements are carried at the contract amount in the financial statements. Collateral pledged (the securities received), which consists primarily of U.S. government obligations and asset-backed securities, are held by the custodian bank until maturity of the repurchase agreement. Provisions of the repurchase agreements and the procedures adopted by the Fund require that the market value of the collateral, including accrued interest thereon, is sufficient in the event of default by the counterparty. If the counterparty defaults and the value of the collateral declines or if the counterparty enters an insolvency proceeding, realization of the collateral by the Fund may be delayed or limited.

24 PIMCO Floating Rate Strategy Fund Annual Report | 8.31.05

PIMCO Floating Rate Strategy Fund Notes to Financial Statements
August 31, 2005

1. Organization and Significant Accounting Policies (continued)

(m) When-Issued/Delayed-Delivery Transactions
The Fund may purchase or sell securities on a when-issued or delayed-delivery basis. The transactions involve a commitment to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. When delayed-delivery purchases are outstanding, the Fund will set aside and maintain until the settlement date in a designated account, liquid assets in an amount sufficient to meet the purchase price. When purchasing a security on a delayed-delivery basis, the Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its net asset value. The Fund may dispose of or renegotiate a delayed-delivery transaction after it is entered into, and may sell when-issued securities before they are delivered, which may result in a realized gain or loss. When a security on a delayed-delivery basis is sold, the Fund does not participate in future gains and losses with respect to the security.

(n) Custody Credits on Cash Balances
The Fund benefits from an expense offset arrangement with its custodian bank whereby uninvested cash balances earn credits which reduce monthly custodian and accounting agent expenses. Had these cash balances been invested in income producing securities, they would have generated income for the Fund.

2. Investment Manager/Sub-Adviser
The Fund has entered into an Investment Management Agreement (the “Agreement”) with the Investment Manager. Subject to the supervision of the Fund’s Board of Trustees, the Investment Manager is responsible for managing, either directly or through others selected by it, the Fund’s investment activities, business affairs and administrative matters. Pursuant to the Agreement, the Investment Manager receives an annual fee, payable monthly, at an annual rate of 0.75% of the Fund’s average weekly total managed assets. Total managed assets refer to the total assets of the Fund (including assets attributable to any Preferred Shares or other forms of leverage that may be outstanding minus accrued liabilities (other than liabilities representing leverage)).

The Investment Manager has retained the Sub-Adviser, to manage the Fund’s investments. Subject to the supervision of the Investment Manager, the Sub-Adviser is responsible for making all the Fund’s investment decisions. The Investment Manager and not the Fund pays a portion of the fees it receives as Investment Manager to the Sub-Adviser in return for its services, at the maximum annual rate of 0.39% of the Fund’s average weekly total managed assets for the period from commencement of operations through October 31, 2008. Commencing November 1, 2008, the Investment Manager will pay the Sub-Adviser a monthly fee at the annual rate of 0.55% of the Fund’s average weekly total managed assets. The Investment Manager informed the Fund that it paid the Sub-Adviser $3,815,502 in connection with its sub-advisory services for the period October 29, 2004 (commencement of operations) through August 31, 2005.

3. Investment in Securities
For the period October 29, 2004 (commencement of operations) through August 31, 2005, purchases and sales of investments, other than short-term securities and U.S. government obligations, were $1,639,949,653 and $486,533,388 respectively.

(a) Transactions in options written for the period October 29, 2004 (commencement of operations) through August 31, 2005:

	Contracts		Premiums
Options outstanding, October 29, 2004	—		$	—
Options written	163,617,852			6,838,956
Options terminated in closing purchase transactions	(24,910,652	)		(4,754,075	)
Options expired	(129,502,640	)		(671,959	)
Options outstanding, August 31, 2005	9,204,560		$	1,412,922

The Fund received $1,750,000 par value in U.S. Treasury Bills as collateral for swap contracts.

8.31.05 | PIMCO Floating Rate Strategy Fund Annual Report 25

PIMCO Floating Rate Strategy Fund Notes to Financial Statements
August 31, 2005

3. Investment in Securities (continued)

(b) Credit default swaps contracts outstanding at August 31, 2005:

	Notional
Swap	Amount	Fixed
Counterparty/	Payable on	Payments	Unrealized
Referenced Debt	Default	Termination	Received (Paid)		Appreciation
Issuer	(000)	Date	by Fund		(Depreciation)
Bank of America
Bombardier, Inc.	$     3,000	12/20/05	2.00	%	$     21,416
Bombardier, Inc.	3,500	6/20/10	3.80	%	50,101
CMS Energy Corp.	5,000	12/20/09	2.15	%	163,306
Royal Caribbean Cruises, Ltd.	5,000	12/20/09	1.12	%	13,441
Williams Cos., Inc.	5,000	12/20/09	1.65	%	120,946
Bear Stearns
Allied Waste North America, Inc.	1,500	12/20/07	1.85	%	1,991
ArvinMeritor, Inc.	1,500	12/20/07	1.14	%	(14,061	)
Dura Operating Corp.	4,500	12/20/09	4.15	%	(177,136	)
Dynergy Inc.	1,500	12/20/09	2.35	%	(14,975	)
MGM Mirage	5,000	12/20/09	1.54	%	(26,992	)
Stone Container Corp.	1,500	12/20/09	1.76	%	(116,516	)
Stone Container Corp.	5,000	12/20/09	1.87	%	(116,441	)
Citigroup
Host Marriott L.P.	5,000	12/20/09	1.70	%	35,991
Reliant Energy, Inc.	5,000	12/20/09	3.20	%	161,762
Credit Suisse First Boston
Delphi Corp.	3,000	3/20/10	3.80	%	(544,932	)
Equistar Chemicals L.P.	5,000	12/20/09	2.25	%	(45,308	)
Goodyear Tire & Rubber Co.	2,000	3/20/15	(3.85	%)	45,876
Intelsat Bermuda Ltd.	7,000	3/20/10	3.21	%	(475,561	)
Samis	7,000	12/20/09	2.15	%	55,851
Samis	2,800	9/20/08	2.45	%	45,385
Vintage Petroleum, Inc.	5,000	12/20/09	1.95	%	54,369
Goldman Sachs
Dow Jones CDX	19,800	6/20/10	3.60	%	545,511
HSBC Bank
Ford Motor Credit Co.	2,000	6/20/06	3.25	%	39,580
General Motors Acceptance Corp.	4,000	6/20/06	4.25	%	118,924
J. P. Morgan Chase
Dow Jones CDX	5,800	6/20/10	3.60	%	147,859
Goodyear Tire & Rubber Co.	2,000	3/20/07	(1.55	)%	5,306
Goodyear Tire & Rubber Co.	4,000	3/20/10	3.40	%	(16,203	)
NRG Energy, Inc.	5,000	12/20/09	2.20	%	22,320
Lehman Securities
Boyd Gaming Corp.	5,000	12/20/09	1.65	%	150,431
Ford Motor Credit Co.	3,000	6/20/06	2.90	%	48,932
General Motors Acceptance Corp.	3,000	3/20/06	2.10	%	20,625
General Motors Corp.	8,000	12/20/05	0.92	%	(8,314	)
Hayes Lemmerz International, Inc.	5,000	12/20/09	2.50	%	(81,799	)
HCA, Inc.	5,000	12/20/09	1.55	%	79,663

26 PIMCO Floating Rate Strategy Fund Annual Report | 8.31.05

PIMCO Floating Rate Strategy Fund Notes to Financial Statements
August 31, 2005

3. Investment in Securities (continued)

	Notional
Swap	Amount	Fixed
Counterparty/	Payable on	Payments	Unrealized
Referenced Debt	Default	Termination	Received (Paid)		Appreciation
Issuer	(000)	Date	by Fund		(Depreciation)
Lehman Securities (continued)
PanAmSat Corp.	$     3,000	12/20/09	3.00	%	$	(33,874	)
Six Flags, Inc.	4,000	3/20/10	2.70	%		87,119
Starwood Hotels and Resorts
Worldwide, Inc.	5,000	12/20/09	1.15	%		41,627
Station Casinos, Inc.	5,000	12/20/09	1.45	%		32,691
Stone Container Corp.	3,000	12/20/09	1.85	%		(236,333	)
TRW, Inc.	5,000	12/20/09	2.05	%		(2,907	)
Merrill Lynch
AES Corp.	3,000	12/20/09	2.60	%		96,129
ArvinMeritor, Inc.	4,500	12/20/09	2.25	%		(68,647	)
Bombardier, Inc.	5,000	3/20/06	3.25	%		88,200
Chesapeake Energy Corp.	5,000	12/20/09	1.30	%		49,560
CMS Energy Corp.	1,500	12/20/09	1.85	%		30,831
Delhaize America, Inc.	5,000	12/20/09	1.07	%		19,003
Toys “R” Us, Inc.	3,500	12/20/06	(1.45	%)		10,986
Toys “R” Us, Inc.	7,000	12/20/09	2.91	%		(349,291	)
Toys “R” Us, Inc.	5,000	12/20/09	3.20	%		(195,205	)
Toys “R” Us, Inc.	3,500	12/20/14	(3.34	%)		413,258
Vintage Petroleum, Inc.	3,000	12/20/09	1.50	%		30,984
Morgan Stanley
Dow Jones CDX	18,200	12/20/09	2.60	%		634,486
Dow Jones CDX	4,900	6/20/10	3.60	%		131,041
UBS Securities
Dow Jones CDX	10,000	6/20/10	3.60	%		254,930
General Motors Acceptance Corp.	6,000	9/20/06	5.05	%		264,273
Wachovia Securities
Dow Jones CDX	6,250	6/20/10	3.60	%		159,331
Ford Motor Credit Co.	5,000	12/20/09	2.14	%		(536,187	)
General Motors Corp.	5,000	12/20/09	2.26	%		(635,836	)
					$	597,517

(c) Interest rate swap agreements outstanding at August 31, 2005:

			Rate Type
	Notional		Payments		Payments		Unrealized
	Amount	Termination	made		received		Appreciation
Swap Counterparty	(000)	Date	by Fund		by Fund		(Depreciation)
Bank of America	$255,000	1/07/25	3 month LIBOR		5.13	%	$	17,227,973
Bank of America	255,000	6/15/25	5.25	%	3 month LIBOR			(6,633,137	)
Goldman Sachs	630,000	6/15/25	5.00	%	3 month LIBOR			(17,780,364	)
Goldman Sachs	630,000	7/22/25	3 month LIBOR		4.83	%		17,634,232
							$	10,448,704
LIBOR – London Interbank Offered Rate

8.31.05 | PIMCO Floating Rate Strategy Fund Annual Report 27

PIMCO Floating Rate Strategy Fund Notes to Financial Statements
August 31, 2005

3. Investment in Securities (continued)

(d) Forward foreign currency contracts outstanding at August 31, 2005:

			Unrealized
	U.S. $ Value	U.S. $ Value	Appreciation
	Origination Date	August 31, 2005	(Depreciation)
Purchased:
1,693,307,000 Japanese Yen settling 9/13/05	$15,162,472	$15,257,279	$	94,807
Sold:
€ 40,875,000 settling 9/30/05	50,067,665	50,337,581		(269,916	)
			$	(175,109	)

(e) At August 31, 2005, the Fund had the following unfunded loan commitments which could be extended at the option of the borrower:

	Unfunded
Borrower	Commitments
Host Marriott L.P. Revolver A	$3,245,833
Host Marriott L.P. Revolver B	1,622,917
MotorCity Casino Term D	2,015,000
Visteon Corp.	214,100
Warner Chilcott Co., Inc.	1,201,754
Warner Chilcott Co., Inc.	223,383
Warner Chilcott Co., Inc.	240,351
Warner Chilcott Co., Inc.	44,676
	$8,808,014

4. Income Tax Information
The tax character of dividends paid for the period October 29, 2004 (commencement of operations) through August 31, 2005 of $47,631,649 was comprised entirely of ordinary income.

For federal income tax purposes, the Fund elected to treat net realized capital losses of $10,506,270 and net foreign currency losses of $557,652 incurred in the period November 1, 2004 through August 31, 2005, as having been incurred in the next fiscal year.

The cost basis of portfolio securities for federal income tax purposes is $1,335,954,114. Aggregated gross unrealized appreciation for securities in which there is an excess value over tax cost is $8,900,198; aggregate gross unrealized depreciation for securities in which there is an excess of tax cost over value is $3,126,390; net unrealized appreciation for federal income tax purposes is $5,773,808. The difference between book and tax appreciation/depreciation is primarily attributable to wash sales and certain fees received from loans.

5. Auction Preferred Shares
The Fund has issued 3,840 shares of Preferred Shares Series M, 3,840 shares of Preferred Shares Series T, 3,840 shares of Preferred Shares Series W, 3,840 shares of Preferred Shares Series Th, and 3,840 shares of Preferred Shares Series F, each with a net asset and liquidation value of $25,000 per share plus accrued dividends.

Dividends and distributions of net realized long-term capital gains, if any, are accumulated daily at an annual rate (typically re-set every seven days) through auction procedures.

28 PIMCO Floating Rate Strategy Fund Annual Report | 8.31.05

PIMCO Floating Rate Strategy Fund Notes to Financial Statements
August 31, 2005

5. Auction Preferred Shares (continued)

For the period October 29, 2004 (commencement of operations) through August 31, 2005, the annualized dividend rate ranged from:

	High		Low		At August 31, 2005
Series M	3.51	%	2.22	%	3.51	%
Series T	3.47	%	2.24	%	3.47	%
Series W	3.43	%	2.19	%	3.43	%
Series TH	3.50	%	2.19	%	3.45	%
Series F	3.45	%	2.22	%	3.42	%

The Fund is subject to certain limitations and restrictions while Preferred Shares are outstanding. Failure to comply with these limitations and restrictions could preclude the Fund from declaring any dividends or distributions to common shareholders or repurchasing common shares and/or could trigger the mandatory redemption of Preferred Shares at their liquidation value.

Preferred Shares, which are entitled to one vote per share, generally vote together with the common stock but vote separately as a class to elect two Trustees and on any matters affecting the rights of the preferred shares.

6. Subsequent Common Dividend Declarations
On September 2, 2005, a dividend of $0.11719 per share was declared to common shareholders payable October 7, 2005 to shareholders of record on September 16, 2005.

On October 7, 2005, a dividend of $0.11719 per share was declared to common shareholders payable November 4, 2005 to shareholders of record on October 21, 2005.

7. Legal Proceedings
On September 13, 2004, the Securities and Exchange Commission (the “Commission”) announced that the Investment Manager and certain of its affiliates (together with the Investment Manager, the “Affiliates”) had agreed to a settlement of charges that they and certain of their officers had, among other things, violated various antifraud provisions of the federal securities laws in connection with an alleged market-timing arrangement involving trading of shares of certain open-end investment companies (‘‘open-end funds’’) advised or distributed by these certain Affiliates. In their settlement with the Commission, the Affiliates consented to the entry of an order by the Commission and, without admitting or denying the findings contained in the order, agreed to implement certain compliance and governance changes and consented to cease-and-desist orders and censures. In addition, the Affiliates agreed to pay civil money penalties in the aggregate amount of $40 million and to pay disgorgement in the amount of $10 million, for an aggregate payment of $50 million. In connection with the settlement, the Affiliates have been dismissed from the related complaint the Commission filed on May 6, 2004 in the U.S. District Court in the Southern District of New York. Neither the complaint nor the order alleges any inappropriate activity took place with respect to the Fund.

In a related action on June 1, 2004, the Attorney General of the State of New Jersey (‘‘NJAG’’) announced that it had entered into a settlement agreement with Allianz Global and the Affiliates, in connection with a complaint filed by the NJAG on February 17, 2004. The NJAG dismissed claims against the Sub-Adviser, which had been part of the same complaint. In the settlement, Allianz Global and other named affiliates neither admitted nor denied the allegations or conclusions of law, but did agree to pay New Jersey a civil fine of $15 million and $3 million for investigative costs and further potential enforcement initiatives against unrelated parties. They also undertook to implement certain governance changes. The complaint relating to the settlement contained allegations arising out of the same matters that were the subject of the Commission order regarding market-timing described above and does not allege any inappropriate activity took place with respect to the Fund.

On September 15, 2004, the Commission announced that the Affiliates had agreed to settle an enforcement action in connection with charges that they violated various antifraud and other provisions of federal securities laws as a result of, among other things, their failure to disclose to the board of trustees and shareholders of various open-end funds advised or distributed by the Affiliates material facts and conflicts of interest that arose from their use of brokerage commissions on portfolio transactions to pay for so-called ‘‘shelf space’’ arrangements with certain broker-dealers. In their settlement with the Commission, the Affiliates consented to the entry of an order by the Commission without admitting or denying the findings contained in the order. In connection with the settlement, the Affiliates agreed to undertake certain

8.31.05 | PIMCO Floating Rate Strategy Fund Annual Report 29

PIMCO Floating Rate Strategy Fund Notes to Financial Statements
August 31, 2005

7. Legal Proceedings (continued)

compliance and disclosure reforms and consented to cease-and-desist orders and censures. In addition, the Affiliates agreed to pay a civil money penalty of $5 million and to pay disgorgement of approximately $6.6 million based upon the aggregate amount of brokerage commissions alleged to have been paid by such open-end funds in connection with these shelf-space arrangements (and related interest). In a related action, the California Attorney General announced on September 15, 2004 that it had entered into an agreement with an affiliate of the Investment Manager in resolution of an investigation into matters that are similar to those discussed in the Commission order. The settlement agreement resolves matters described in a complaint filed contemporaneously by the California Attorney General in the Superior Court of the State of California alleging, among other things, that this affiliate violated certain antifraud provisions of California law by failing to disclose matters related to the shelf-space arrangements described above. In the settlement agreement, the affiliate did not admit to any liability but agreed to pay $5 million in civil penalties and $4 million in recognition of the California Attorney General’s fees and costs associated with the investigation and related matters. Neither the Commission order nor the California Attorney General’s complaint alleges any inappropriate activity took place with respect to the Fund.

On April 11, 2005, the Attorney General of the State of West Virginia filed a complaint in the Circuit Court of Marshall County, West Virginia (the “West Virginia Complaint”) against the Investment Manager and certain of its Affiliates based on the same circumstances as those cited in the 2004 settlements with the Commission and NJAG involving alleged “market timing” activities described above. The West Virginia Complaint alleges, among other things, that the Investment Manager and certain of its Affiliates improperly allowed broker-dealers, hedge funds and investment advisers to engage in frequent trading of various open-end funds advised or distributed by the Affiliates in violation of the funds’ stated restrictions on “market timing.” As of the date of this report, the West Virginia Complaint has not been formally served upon the Investment Manager or the Affiliates. The West Virginia Complaint also names numerous other defendants unaffiliated with the Affiliates in separate claims alleging improper market timing and/or late trading of open-end investment companies advised or distributed by such other defendants. The West Virginia Complaint seeks injunctive relief, civil monetary penalties, investigative costs and attorney’s fees. The West Virginia Complaint does not allege that any inappropriate activity took place with respect to the Fund.

Since February 2004, certain of the Affiliates and their employees have been named as defendants in a total of 14 lawsuits filed in one of the following: U.S. District Court in the Southern District of New York, the Central District of California and the Districts of New Jersey and Connecticut. Ten of those lawsuits concern ‘‘market timing,’’ and they have been transferred to and consolidated for pre-trial proceedings in the U.S. District Court for the District of Maryland; the remaining four lawsuits concern ‘‘revenue sharing’’ with brokers offering ‘‘shelf space’’ and have been consolidated into a single action in the U.S. District Court for the District of Connecticut. The lawsuits have been commenced as putative class actions on behalf of investors who purchased, held or redeemed shares of affiliated funds during specified periods or as derivative actions on behalf of the funds.

The lawsuits generally relate to the same facts that are the subject of the regulatory proceedings discussed above. The lawsuits seek, among other things, unspecified compensatory damages plus interest and, in some cases, punitive damages, the rescission of investment advisory contracts, the return of fees paid under those contracts and restitution. The Investment Manager believes that other similar lawsuits may be filed in federal or state courts naming as defendants the Investment Adviser, the Affiliates, Allianz Global, the Fund, other open- and closed-end funds advised or distributed by the Investment Manager and/or its affiliates, the boards of directors or trustees of those funds, and/or other affiliates and their employees. Under Section 9(a) of the 1940 Act, if any of the various regulatory proceedings or lawsuits were to result in a court injunction against the Investment Manager, Allianz Global/or their affiliates, they and their affiliates would, in the absence of exemptive relief granted by the Commission, be barred from serving as an investment manager/sub-adviser or principal underwriter for any registered investment company, including the Fund. In connection with an inquiry from the Commission concerning the status of the New Jersey settlement described above under Section 9(a), the Investment Manager and certain of its affiliates (together, the ‘‘Applicants’’) have sought exemptive relief from the Commission under Section 9(c) of the 1940 Act.

The Commission has granted the Applicants a temporary exemption from the provisions of Section 9(a) with respect to the New Jersey settlement until the earlier of (i) September 13, 2006 and (ii) the date on which the Commission takes final action on their application for a permanent order. There is no assurance that the Commission will issue a permanent order. If the West Virginia Attorney General were to obtain a court injunction against the Investment Manager or the Affiliates, the Investment Manager or the Affiliates would, in turn, seek exemptive relief under Section 9(c) with respect to that matter, although there is no assurance that such exemptive relief would be granted.

30 PIMCO Floating Rate Strategy Fund Annual Report | 8.31.05

PIMCO Floating Rate Strategy Fund Notes to Financial Statements
August 31, 2005

7. Legal Proceedings (continued)

A putative class action lawsuit captioned Charles Mutchka et al. v. Brent R. Harris, et al., filed in January 2005 by and on behalf of individual shareholders of certain open-end funds that hold equity securities and that are sponsored by the Investment Manager and the Affiliates, is currently pending in the federal district court for the Central District of California. The plaintiff alleges that fund trustees, investment advisers and affiliates breached fiduciary duties and duties of care by failing to ensure that the open-end funds participated in securities class action settlements for which those funds were eligible. The plaintiff has claimed as damages disgorgement of fees paid to the investment advisers, compensatory damages and punitive damages.

The Investment Manager believes that the claims made in the lawsuit against the Investment Manager and the Affiliates are baseless, and the Investment Manager and the Affiliates intend to vigorously defend the lawsuit. As of the date hereof, the Investment Manager believes a decision, if any, against the defendants would have no material adverse effect on the Fund or the ability of the Investment Manager or the Sub-Adviser to perform their duties under the investment management or portfolio management agreements, as the case may be. It is possible that these matters and/or other developments resulting from these matters could lead to a decrease in the market price of the Fund’s shares or other adverse consequences to the Fund and its shareholders. However, the Investment Manager and the Sub-Adviser believe that these matters are not likely to have a material adverse effect on the Fund or on the Investment Manager’s or the Sub-Adviser’s ability to perform their respective investment advisory services related to the Fund.

The foregoing speaks only as of the date hereof. There may be additional litigation or regulatory developments in connection with the matters discussed above.

8.31.05 | PIMCO Floating Rate Strategy Fund Annual Report 31

PIMCO Floating Rate Strategy Fund Financial Highlights
For a share of common stock outstanding for the period October 29, 2004* through August 31, 2005

Net asset value, beginning of period	$	19.10	**
Investment Operations:
Net investment income		0.88
Net realized and unrealized gain on investments,
futures contracts, options written, swaps, foreign currancy
transactions and unfunded loan commitments		0.31
Total from investment operations		1.19
Dividends on Preferred Shares from Net Investment Income		(0.24	)
Net increase in net assets applicable to common shareholders
resulting from investment operations		0.95
Dividends to Common Shareholders from Net Investment Income		(0.91	)
Capital Share Transactions:
Common stock offering costs charged to paid-in capital in excess of par		(0.03	)
Preferred shares offering costs/underwriting discounts charged
to paid-in capital in excess of par		(0.13	)
Total capital share transactions		(0.16	)
Net asset value, end of period	$	18.98
Market price, end of period	$	18.21
Total Investment Return (1)		(4.39	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets applicable to common shareholders, end of period (000)	$	789,094
Ratio of expenses to average net assets (2)(3)(4)		1.35	%
Ratio of net investment income to average net assets (2)(4)		5.57	%
Preferred shares asset coverage per share	$	66,084
Portfolio turnover		47	%

*	Commencement of operations.
**	Initial public offering price of $20.00 per share less underwriting discount of $0.90 per share.
(1)	Total investment return is calculated assuming a purchase of a share of common stock at the current market price on the first day of the period and a sale of a share of common stock at the current market price on the last day of the period reported. Dividends are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Fund’s dividend reinvestment plan. Total investment return does not reflect brokerage commissions or sales charges. Total investment return for a period of less than one year is not annualized.
(2)	Calculated on the basis of income and expenses applicable to both common and preferred shares relative to the average net assets of common shareholders.
(3)	Inclusive of expenses offset by custody credits earned on cash balances at the custodian bank. (See note 1(n) in Notes to Financial Statements).
(4)	Annualized.

32 PIMCO Floating Rate Strategy Fund Annual Report | 8.31.05 | See accompanying Notes to Financial Statements

PIMCO Floating Rate Strategy Fund	Report of Independent Registered
	Public Accounting Firm

To the Shareholders and Board of Trustees of
PIMCO Floating Rate Strategy Fund

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations, of changes in net assets applicable to common shareholders and of cash flows and the financial highlights present fairly, in all material respects, the financial position of PIMCO Floating Rate Strategy Fund (the “Fund”) at August 31, 2005, and the results of its operations, the changes in its net assets applicable to common shareholders, cash flows, and financial highlights for the period October 29, 2004 (commencement of operations) through August 31, 2005, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at August 31, 2005 by correspondence with the custodian, brokers and agent banks, provides a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
New York, New York
October 27, 2005

8.31.05 | PIMCO Floating Rate Strategy Fund Annual Report 33

PIMCO Floating Rate Strategy Fund Tax Information and Privacy Policy
                                                  (unaudited)

Tax Information
Pursuant to the Jobs and Growth Tax Relief Reconciliation Act of 2003, the Fund designates qualified dividend income of $38,536 or maximum allowable amount.

The percentage of ordinary dividends paid by the Fund during the year ended August 31, 2005 which qualified for the Dividends Received Deduction available to corporate shareholders was 100% or the maximum allowable amount.

Since the Fund’s tax year is not the calendar year, another notification will be sent with respect to calendar year 2005. In January 2006, shareholders will be advised on IRS Form 1099 DIV as to the federal tax status of the dividends and distributions received during calendar 2005. The amount that will be reported, will be the amount to use on your 2005 federal income tax return and may differ from the amount which must be reported in connection with the fund’s tax year ended August 31, 2005. Shareholders are advised to consult their tax advisers as to the federal, state and local tax status of the dividend income received from the Fund.

Privacy Policy:

Our Commitment to You
We consider customer privacy to be a fundamental aspect of our relationship with clients. We are committed to maintaining the confidentiality, integrity, and security of our current, prospective and former clients’ personal information. We have developed policies designed to protect this confidentiality, while allowing client needs to be served.

Obtaining Personal Information
In the course of providing you with products and services, we may obtain non-public personal information about you. This information may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from your transactions, from your brokerage or financial advisory firm, financial adviser or consultant, and/or from information captured on our internet web sites.

Respecting Your Privacy
We do not disclose any personal or account information provided by you or gathered by us to non-affiliated third parties, except as required or permitted by law. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on client satisfaction, and gathering shareholder proxies. We may also retain non-affiliated companies to market our products and enter in joint marketing agreements with other companies. These companies may have access to your personal and account information, but are permitted to use the information solely to provide the specific service or as otherwise permitted by law. We may also provide your personal and account information to your brokerage or financial advisory firm and/or to your financial adviser or consultant.

Sharing Information with Third Parties
We do reserve the right to disclose or report personal information to non-affiliated third parties in limited circumstances where we believe in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to protect our rights or property, or upon reasonable request by any mutual fund in which you have chosen to invest. In addition, we may disclose information about you or your accounts to a non-affiliated third party at your request or if you consent in writing to the disclosure.

Sharing Information with Affiliates
We may share client information with our affiliates in connection with servicing your account or to provide you with information about products and services that we believe may be of interest to you. The information we share may include, for example, your participation in our mutual funds or other investment programs, your ownership of certain types of accounts (such as IRAs), or other data about your accounts. Our affiliates, in turn, are not permitted to share your information with non-affiliated entities, except as required or permitted by law.

Implementation of Procedures
We take seriously the obligation to safeguard your non-public personal information. We have implemented procedures designed to restrict access to your non-public personal information to our personnel who need to know that information to provide products or services to you. To guard your non-public personal information, physical, electronic, and procedural safeguards are in place.

34 PIMCO Floating Rate Strategy Fund Annual Report | 8.31.05

PIMCO Floating Rate Strategy Fund Proxy Voting Policies & Procedures
                                                  (unaudited)

Proxy Voting Policies & Procedures:
A description of the policies and procedures that the Fund has adopted to determine how to vote proxies relating to portfolio securities and information about how the Fund voted proxies relating to portfolio securities held during October 29,2004 (commencement of operations) through June 30, 2005 is available (i) without charge, upon request, by calling the Fund’s transfer agent at (800) 331-1710; (ii) on the Fund’s website at www.allianzinvestors.com; and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.

8.31.05 | PIMCO Floating Rate Strategy Fund Annual Report 35

PIMCO Floating Rate Strategy Fund Dividend Reinvestment Plan (unaudited)

Pursuant to the Fund’s Dividend Reinvestment Plan (the “Plan”), all Common Shareholders whose shares are registered in their own names will have all dividends, including any capital gain dividends, reinvested automatically in additional Common Shares by PFPC Inc., as agent for the Common Shareholders (the “Plan Agent”), unless the shareholder elects to receive cash. An election to receive cash may be revoked or reinstated at the option of the shareholder. In the case of record shareholders such as banks, brokers or other nominees that hold Common Shares for others who are the beneficial owners, the Plan Agent will administer the Plan on the basis of the number of Common Shares certified from time to time by the record shareholder as representing the total amount registered in such shareholder’s name and held for the account of beneficial owners who are to participate in the Plan. Shareholders whose shares are held in the name of a bank, broker or nominee should contact the bank, broker or nominee for details. All distributions to investors who elect not to participate in the Plan (or whose broker or nominee elects not to participate on the investor’s behalf), will be paid cash by check mailed, in the case of direct shareholder, to the record holder by PFPC Inc., as the Fund’s dividend disbursement agent.

Unless you (or your broker or nominee) elects not to participate in the Plan, the number of Common Shares you will receive will be determined as follows:

(1)

If common Shares are trading at or above net asset value on the payment date, the Fund will issue new shares at the greater of (i) the net asset value per Common Share on the payment date or (ii) 95% of the market price per Common Share on the payment date; or

(2)

If Common Shares are trading below net asset value (minus estimated brokerage commissions that would be incurred upon the purchase of Common Shares on the open market) on the payment date, the Plan Agent will receive the dividend or distribution in cash and will purchase Common Shares in the open market, on the New York Stock Exchange or elsewhere, for the participants’ accounts. It is possible that the market price for the Common Shares may increase before the Plan Agent has completed its purchases. Therefore, the average purchase price per share paid by the Plan Agent may exceed the market price on the payment date, resulting in the purchase of fewer shares than if the dividend or distribution had been paid in Common Shares issued by the Fund. The Plan Agent will use all dividends and distributions received in cash to purchase Common Shares in the open market on or shortly after the payment date, but in no event later than the ex-dividend date for the next distribution. Interest will not be paid on any uninvested cash payments.

You may withdraw from the Plan at any time by giving notice to the Plan Agent. If you withdraw or the Plan is terminated, you will receive a certificate for each whole share in your account under the Plan and you will receive a cash payment for any fraction of a share in your account. If you wish, the Plan Agent will sell your shares and send you the proceeds, minus brokerage commissions.

The Plan Agent maintains all shareholders’ accounts in the Plan and gives written confirmation of all transactions in the accounts, including information you may need for tax records. The Plan Agent will also furnish each person who buys Common Shares with written instructions detailing the procedures for electing not to participate in the Plan and to instead receive distributions in cash. Common Shares in your account will be held by the Plan Agent in non-certificated form. Any proxy you receive will include all Common Shares you have received under the Plan.

There is no brokerage charge for reinvestment of your dividends or distributions in Common Shares. However, all participants will pay a pro rata share of brokerage commissions incurred by the Plan Agent when it makes open market purchases.

Automatically reinvested dividends and distributions are taxed in the same manner as cash dividends and distributions.

The Fund and the Plan Agent reserve the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan; however, the Fund reserves the right to amend the Plan to include a service charge payable by the participants. Additional information about the Plan may be obtained from the Fund’s transfer agent, PFPC Inc., P.O. Box 43027, Providence, RI 02940-3027, telephone number (800) 331-1710.

36 PIMCO Floating Rate Strategy Fund Annual Report | 8.31.05

PIMCO Floating Rate Strategy Fund Board of Trustees (unaudited)

Name, Age, Position(s) Held with Funds,
Length of Service, Other Trusteeships/
Directorships Held by Trustee; Number of
Portfolios in Fund Complex/Outside Fund
Complexes Currently Overseen by Trustee	Principal Occupation(s) During Past 5 years:
The address of each trustee is 1345 Avenue of
the Americas, New York, NY 10105
Robert E. Connor	Corporate Affairs Consultant; Formerly, Senior Vice President, Corporate
Date of Birth: 9/17/34	Office, Smith Barney Inc.
Chairman of the Board of Trustees since: 2004
Trustee since: 2004
Term of office: Expected to stand for re-election
at 2005 annual meeting of shareholders.
Trustee/Director of 24 funds in Fund Complex
Trustee/Director of no funds outside of Fund
Complex
John J. Dalessandro II	Formerly, President and Director, J.J. Dalessandro II Ltd, registered broker-
Date of Birth: 7/26/37	dealer and member of the New York Stock Exchange.
Trustee since: 2004
Term of office: Expected to stand for re-election
at 2006 annual meeting of shareholders.
Trustee of 23 funds in Fund Complex
Trustee of no funds outside of Fund complex
David C. Flattum†	Managing Director, Chief Operating Officer, General Counsel and
Date of Birth: 8/27/64	member of Management Board, Allianz Global Investors of America, L.P.;
Trustee since: 2005	Formerly, Partner, Latham & Watkins LLP (1998-2001).
Term of office: Expected to stand for election
at 2005 annual meeting of shareholders.
Trustee of 52 funds in Fund Complex
Trustee of no funds outside of Fund Complex
Hans W. Kertess	President, H Kertess & Co., L.P. Formerly, Managing Director, Royal Bank
Date of Birth: 7/12/39	of Canada Capital Markets.
Trustee since: 2004
Term of office: Expected to stand for re-election
at 2007 annual meeting of shareholders.
Trustee of 23 Funds in Fund Complex;
Trustee of no funds outside of Fund Complex

†      Mr. Flattum is an “interested person” of the Fund due to his affiliation with Allianz Global Investors of America L.P. and the Investment Manager. In addition to Mr. Flattum’s positions with affiliated persons of the Fund set forth in the trade above, he holds the following positions with affiliated person: Director, PIMCO Global Advisors (Resources) Limited; Managing Director, Allianz Dresdner Asset Management U.S. Equities LLC, Allianz Hedge Fund Partners Holdings L.P., Allianz PacLife Partners LLC, PA Holdings LLC; Director and Chief Executive Officer, Oppenheimer Group, Inc.

Further information about Fund’s Trustees is available in the Fund’s Statement of Additional Information, dated October 26, 2004, which can be obtained upon request, without charge, by calling the Fund’s transfer agent at (800) 331-1710.

8.31.05 | PIMCO Floating Rate Strategy Fund Annual Report 37

PIMCO Floating Rate Strategy Fund Board of Trustees (unaudited)

Name, Age, Position(s) Held with Fund.	Principal Occupation(s) During Past 5 years:
Brian S. Shlissel	Executive Vice President, Allianz Global Investors Fund Management
Date of Birth: 11/14/64	LLC; President and Chief Executive Officer of 32 funds in the Fund
President & Chief	Complex; Treasurer; Principal Financial and Accounting Officer of 31 funds
Executive Officer since: 2003	in the Fund Complex; Trustee of 8 funds in the Fund Complex.
Lawrence G. Altadonna	Senior Vice President, Allianz Global Investors Fund Management LLC;
Date of Birth: 3/10/66	Treasurer, Principal Financial and Accounting officer of 32 fund’s in the
Treasurer, Principal/Financial	Fund Complex; Assistant Treasurer of 31 funds in the Fund Complex.
and Accounting Officer since: 2003
Raymond G. Kennedy	Managing Director, Portfolio Manager and senior member of PIMCO’s
Date of Birth: 1/28/61	investment strategy group. Mr. Kennedy joined PIMCO in 1996, having
Vice President since: 2003	previously been associated with the Prudential Insurance Company of
	Americas as a private placement asset manager, where he was
	responsible for investing and managing a portfolio of investment grade
	and high yield privately -placed fixed income securities. Prior to that,
	he was a consultant for Arthur Andersen in Los Angles and London. He
	was 17 years of investment management experience and holds a
	bachelor’s degree from Stanford University and an MBA from the
	Anderson Graduate School of Management at the University of
	California, Los Angles. He is also a member of LSTA.
Newton B. Schott, Jr.	Managing Director, Chief Administrative Officer, General Counsel and
Date of Birth: 7/14/42	Secretary, Allianz Global Investors Distributors LLC; Managing Director,
Vice President since: 2003	Chief Legal Officer and Secretary, Allianz Global Investors Fund
	Management LLC; Vice President of 63 funds in the Fund Complex;
	Secretary of 33 funds in the fund Complex.
Thomas J. Fuccillo	Vice President, Senior Fund Attorney, Allianz Global Investors of America
Date of Birth: 3/22/68	L.P., Secretary of 32 funds in the Fund Complex.
Secretary since: 2004
Youse Guia	Senior Vice President, Group Compliance Manager, Allianz Global
Date of Birth: 9/3/72	Investors of America L.P., Chief Compliance Officer of 63 funds in the
Chief Compliance Officer since: 2004	Fund Complex.
Jennifer Patula	Assistant Secretary, of 32 funds in the Fund Complex.
Date of Birth: 5/8/78
Assistant Secretary since: 2004

Officers hold office at the pleasure of the Board and until their successors are appointed and qualified or until their earlier resignation or removal.

38 PIMCO Floating Rate Strategy Fund Annual Report | 8.31.05

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Trustees and Principal Officers
Robert E. Connor	Newton B. Schott, Jr.
Trustee, Chairman of the Board of Trustees	Vice President
John J. Dalessandro II	Lawrence G. Altadonna
Trustee	Treasurer, Principal Financial & Accounting Officer
David C. Flattum	Thomas J. Fuccillo
Trustee	Secretary
Hans W. Kertess	Youse Guia
Trustee	Chief Compliance Officer
Brian S. Shlissel	Jennifer A. Patula
President & Chief Executive Officer	Assistant Secretary
Raymond G. Kennedy
Vice President

Investment Manager
Allianz Global Investors Fund Management LLC
1345 Avenue of the Americas
New York, NY 10105

Sub-Adviser
Pacific Investment Management Company LLC
840 Newport Center Drive
Newport Beach, CA 92660

Custodian & Accounting Agent
State Street Bank & Trust Co.
801 Pennsylvania
Kansas City, MO 64105-1307

Transfer Agent, Dividend Paying Agent and Registrar
PFPC Inc.
P.O. Box 43027
Providence, RI 02940-3027

Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP
300 Madison Avenue
New York, NY 10017

Legal Counsel
Ropes & Gray LLP
One International Place
Boston, MA 02210-2624

This report, including the financial information herein, is transmitted to the shareholders of PIMCO Floating Rate Strategy Fund for their information. It is not a prospectus, circular or representation intended for use in the purchase of shares of the Fund or any securities mentioned in this report.

Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that from time to time the Fund may purchase shares of its common stock in the open market.

The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarter of its fiscal year on Form N-Q. The Fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. The information on Form N-Q is also available on the Fund’s website at www.allianzinvestors.com.

On November 22, 2004, the Fund submitted a CEO annual certification to the New York Stock Exchange (“NYSE”) on which the Funds’ principal executive officer certified that he was not aware, as of the date, of any violation by the Fund of the NYSE’s Corporate Governance listing standards. In addition, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and related SEC rules, each Funds’ principal executive and principal financial officer made quarterly certifications, included in filings with the SEC on Forms N-CSR and N-Q relating to, among other things, the Funds’ disclosure controls and procedures and internal control over financial reporting, as applicable.

Information on the Fund is available at www.allianzinvestors.com or by calling the Fund’s transfer agent at (800) 331-1710.

ITEM 2. CODE OF ETHICS

a)	As of the end of the period covered by this report, the registrant has adopted a code of ethics (the “Section 406 Standards for Investment Companies — Ethical Standards for Principal Executive and Financial Officers”) that applies to the registrant’s Principal Executive Officer and Principal Financial Officer; the registrant’s Principal Financial Officer also serves as the Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-331-1710.
b)	During the period covered by this report, there were not any amendments to a provision of the code of ethics adopted in 2(a) above.
a)	During the period covered by this report, there were not any waivers or implicit waivers to a provision of the code of ethics adopted in 2(a) above.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT

The registrant’s Board has determined that Mr. Paul Belica, a member of the Board’s Audit Oversight Committee is an “audit committee financial expert,” and that he is “independent,” for purposes of this Item.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES

a)	Audit fees. The aggregate fees billed for each of the last two fiscal years (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $0 in 2004 and $137,500 in 2005.
b)	Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the principal accountant that are reasonably related to the performance of the audit registrant’s financial statements and are not reported under paragraph (e) of this Item were $0 in 2004 and $15,000 in 2005. These services consist of accounting consultations, agreed upon procedure reports (inclusive of annual review of basic maintenance testing associated with the Preferred Shares), attestation reports and comfort letters.
c)	Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance,

	tax service and tax planning (“Tax Services”) were $0 in 2004 and $11,000 in 2005. These services consisted of review or preparation of U.S. federal, state, local and excise tax returns.
d)	All Other Fees. There were no other fees billed in the Reporting Periods for products and services provided by the Auditor to the Registrant.
e)	1. Audit Committee Pre-Approval Policies and Procedures. The Registrant’s Audit Committee has established policies and procedures for pre-approval of all audit and permissible non-audit services by the Auditor for the Registrant, as well as the Auditor’s engagements for non-audit services to the when the engagement relates directly to the operations and financial reporting of the Registrant. The Registrant’s policy is stated below.
	PIMCO Floating Rate Strategy Fund (THE “FUND”)

AUDIT OVERSIGHT COMMITTEE POLICY FOR PRE-APPROVAL OF SERVICES PROVIDED BY THE INDEPENDENT ACCOUNTANTS

The Funds’ Audit Oversight Committee (“Committee”) is charged with the oversight of the Funds’ financial reporting policies and practices and their internal controls. As part of this responsibility, the Committee must pre-approve any independent accounting firm’s engagement to render audit and/or permissible non-audit services, as required by law. In evaluating a proposed engagement by the independent accountants, the Committee will assess the effect that the engagement might reasonably be expected to have on the accountant’s independence. The Committee’s evaluation will be based on:

     a review of the nature of the professional services expected to provided,

     the fees to be charged in connection with the services expected to be provided,

     a review of the safeguards put into place by the accounting firm to safeguard independence, and

     periodic meetings with the accounting firm.

POLICY FOR AUDIT AND NON-AUDIT SERVICES TO BE PROVIDED TO THE FUNDS

On an annual basis, the Funds’ Committee will review and pre-approve the scope of the audits of the Funds and proposed audit fees and permitted non-audit (including audit-related) services that may be performed by the Funds’ independent accountants. At least annually, the Committee will receive a report of all audit and non-audit services that were rendered in the previous calendar year pursuant to this Policy. In addition to the Committee’s

pre-approval of services pursuant to this Policy, the engagement of the independent accounting firm for any permitted non-audit service provided to the Funds will also require the separate written pre-approval of the President of the Funds, who will confirm, independently, that the accounting firm’s engagement will not adversely affect the firm’s independence. All non-audit services performed by the independent accounting firm will be disclosed, as required, in filings with the Securities and Exchange Commission.

AUDIT SERVICES

The categories of audit services and related fees to be reviewed and pre-approved annually by the Committee are:

    Annual Fund financial statement audits
     Seed audits (related to new product filings, as required)
     SEC and regulatory filings and consents
     Semiannual financial statement reviews

AUDIT-RELATED SERVICES

The following categories of audit-related services are considered to be consistent with the role of the Fund’s independent accountants and services falling under one of these categories will be pre-approved by the Committee on an annual basis if the Committee deems those services to be consistent with the accounting firm’s independence:

     Accounting consultations
     Fund merger support services
     Agreed upon procedure reports (inclusive of quarterly review of Basic Maintenance testing associated
          with issuance of Preferred Shares and semiannual report review)
     Other attestation reports
     Comfort letters
     Other internal control reports

Individual audit-related services that fall within one of these categories and are not presented to the Committee as part of the annual pre-approval process described above, may be pre-approved, if deemed consistent with the accounting firm’s independence, by the Committee Chair (or any other Committee member who is a disinterested trustee under the Investment Company Act to whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $100,000. Any such pre-approval shall be reported to the full Committee at its next regularly scheduled meeting.

TAX SERVICES

The following categories of tax services are considered to be consistent with the role of the Funds’ independent accountants and services falling under one of these categories will be pre-approved by the Committee on an annual basis if the Committee deems those services to be consistent with the accounting firm’s independence:

Tax compliance services related to the filing or amendment of the following:
     Federal, state and local income tax compliance; and, sales and use tax compliance
     Timely RIC qualification reviews
     Tax distribution analysis and planning
     Tax authority examination services
     Tax appeals support services
     Accounting methods studies
     Fund merger support service
     Other tax consulting services and related projects

Individual tax services that fall within one of these categories and are not presented to the Committee as part of the annual pre-approval process described above, may be pre-approved, if deemed consistent with the accounting firm’s independence, by the Committee Chairman (or any other Committee member who is a disinterested trustee under the Investment Company Act to whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $100,000. Any such pre-approval shall be reported to the full Committee at its next regularly scheduled meeting.

PROHIBITED SERVICES

The Funds’ independent accountants will not render services in the following categories of non-audit services:

    Bookkeeping or other services related to the accounting records or financial statements of the Funds
     Financial information systems design and implementation
     Appraisal or valuation services, fairness opinions, or contribution-in-kind reports
     Actuarial servicesInternal audit outsourcing services
     Management functions or human resources
     Broker or dealer, investment adviser or investment banking services
     Legal services and expert services unrelated to the audit
     Any other service that the Public Company Accounting Oversight Board determines, by regulation, is
     impermissible

PRE-APPROVAL OF NON-AUDIT SERVICES PROVIDED TO OTHER ENTITIES WITHIN THE FUND COMPLEX

The Committee will pre-approve annually any permitted non-audit services to be provided to Allianz Global Investors Fund Management LLC (Formerly, PA Fund Management LLC) or any other investment manager to the Funds (but not including any sub-adviser whose role is primarily portfolio management and is sub-contracted by the investment manager) (the “Investment Manager”) and any entity

controlling, controlled by, or under common control with the Investment Manager that provides ongoing services to the Funds (including affiliated sub-advisers to the Funds), provided, in each case, that the engagement relates directly to the operations and financial reporting of the Funds (such entities, including the Investment Manager, shall be referred to herein as the “Accounting Affiliates”). Individual projects that are not presented to the Committee as part of the annual pre-approval process, may be pre-approved, if deemed consistent with the accounting firm’s independence, by the Committee Chairman (or any other Committee member who is a disinterested trustee under the Investment Company Act to whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $100,000. Any such pre-approval shall be reported to the full Committee at its next regularly scheduled meeting.

Although the Committee will not pre-approve all services provided to the Investment Manager and its affiliates, the Committee will receive an annual report from the Funds’ independent accounting firm showing the aggregate fees for all services provided to the Investment Manager and its affiliates.

DE MINIMUS EXCEPTION TO REQUIREMENT OF PRE-APPROVAL OF NON-AUDIT SERVICES

With respect to the provision of permitted non-audit services to a Fund or Accounting Affiliates, the pre-approval requirement is waived if:

(1)	The aggregate amount of all such permitted non-audit services provided constitutes no more than (i) with respect to such services provided to the Fund, five percent (5%) of the total amount of revenues paid by the Fund to its independent accountant during the fiscal year in which the services are provided, and (ii) with respect to such services provided to Accounting Affiliates, five percent (5%) of the total amount of revenues paid to the Fund’s independent accountant by the Fund and the Accounting Affiliates during the fiscal year in which the services are provided;
(2)	Such services were not recognized by the Fund at the time of the engagement for such services to be non-audit services; and
(3)	Such services are promptly brought to the attention of the Committee and approved prior to the completion of the audit by the Committee or by the Committee Chairman (or any other Committee member who is a disinterested trustee under the Investment Company Act to whom this responsibility has been delegated and shall be reported to the full Committee at its next regularly scheduled meeting.
	e) 2. No services were approved pursuant to the procedures contained in paragraph (C) (7) (i) (C) of Rule 2-01 of Regulation S-X.

     f) Not applicable

     g) Non-audit fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant, and rendered to the Adviser, for the 2004 Reporting Period was $2,684,887 and the 2005 Reporting Period was $2,992,953.

     h) Auditor Independence. The Registrant’s Audit Oversight Committee has considered whether the provision of non-audit services that were rendered to the Adviser which were not pre-approved is compatible with maintaining the Auditor’s independence.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANT

The Fund has a separately designated standing audit committee established in accordance with

Section 3(a)(58)(A) of the Securities Exchange Act of 1934. The audit committee of the Fund is comprised of Robert E. Connor, John J. Dalessandro II, and Hans W. Kertess.

ITEM 6. SCHEDULE OF INVESTMENTS Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this form.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

The registrant has delegated the voting of proxies relating to its voting securities to its sub-adviser, Pacific Investment Management Co. (the “Sub-Adviser”). The Proxy Voting Policies and Procedures of the Sub-Adviser are included as an Exhibit 99.PROXYPOL hereto.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT OMPANIES

Not effective at time of filing.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED COMPANIES

			TOTAL NUMBER
			OF SHARES
			PURCHASED
	TOTAL  NUMBER  OF SHARES  PURCHASED		AS PART OF	MAXIMUM NUMBER OF
			PUBLICLY	SHARES THAT MAY YET BE
		AVERAGE	ANNOUNCED PLANS	PURCHASED UNDER THE
		PRICE PAID	OR	PLANS
PERIOD		PER SHARE	PROGRAMS	OR PROGRAMS
September 2004	N/A	N/A	N/A	N/A
October 2004	N/A	N/A	N/A	N/A
November 2004	N/A	N/A	N/A	N/A
December 2004	N/A	N/A	N/A	N/A
January 2005	N/A	19.08	69,672	N/A
February 2005	N/A	19.09	69,085	N/A
March 2005	N/A	19.18	67,690	N/A
April 2005	N/A	18.89	71,201	N/A
May 2005	N/A	N/A	N/A	N/A
June 2005	N/A	N/A	N/A	N/A
July 2005	N/A	N/A	N/A	N/A
August 2005	N/A	N/A	N/A	N/A

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There have been no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board of Trustees since the Fund last provided disclosure in response to this item. The Nominating Committee Charter governing the affairs of the Nominating Committee of the Board is posted on the Allianz Funds website at www.allianzinvestors.com

ITEM 11. CONTROLS AND PROCEDURES

(a)	The registrant’s President and Chief Executive Officer and Principal Financial Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940, as amended are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.
(b)	There were no significant changes in the registrant’s internal controls or in factors that could affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

ITEM 12. EXHIBITS

(a)	(1) Exhibit 99.CODE ETH - Code of Ethics
(a)	(2) Exhibit 99 Cert. - Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
(b)	Exhibit 99.906 Cert. - Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 Exhibit 99.PROXYPOL - Proxy Voting Policies and Procedures

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)	PIMCO Floating Rate Strategy Fund
By /s/ Brian S. Shlissel
President and Chief Executive Officer
Date  November 8, 2005
By /s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer
Date  November 8, 2005

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By /s/ Brian S. Shlissel 

President and Chief Executive Officer 

Date  November 8, 2005

By /s/ Lawrence G. Altadonna

Treasurer, Principal Financial & Accounting Officer 

Date  November 8, 2005

EX-99.CODE ETH

Exhibit 99.(CODEETH)

ALLIANZ GLOBAL INVESTORS OF AMERICA

CODE OF ETHICS PURSUANT TO SECTION 406 OF THE SARBANES-OXLEY
ACT OF 2002 FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL
OFFICERS

AUGUST 19, 2003
(AS REVISED ON OCTOBER 1, 2004)

(AS REVISED ON OCTOBER 1, 2004)

I. COVEREDPERSONS/PURPOSE OF THE CODE

This Code of Ethics (this “Code”)pursuant to Section 406 of the Sarbanes -Oxley Act of 2002 has been adopted by the registeredinvestmentcompanies (each a “Fund” and, collectively, the “Funds”) listed on EXHIBIT A and, except as provided in Section VI below, applies to each Fund’s PrincipalExecutiveOfficer,PrincipalFinancial Officer and PrincipalAccounting Officer (the “CoveredOfficers”) and each Trustee of the Fund who is an “interestedperson” of the Fund (as defined in Section 2(a)(19) of the InvestmentCompany Act of 1940) because such Trustee is an interested person of the Fund’s investment adviser or principalunderwriter(“CoveredTrustees” and, together with the CoveredOfficers, the “CoveredPersons”) . Each Covered Person is identified in EXHIBIT B.

This Code has been adopted for the purpose of promoting:

     • honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

     • full, fair, accurate, timely and understandable disclosure in reports and documents that a Fund files with, or submits to, the Securities and ExchangeCommission(“SEC”) and in other public communications made by a Fund;

     • compliance with applicable laws and governmental rules and regulations;

     • the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and

     • accountability for adherence to the Code.

Each Covered Person should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to conflicts of interest.

II. COVEREDPERSONSSHOULDHANDLEETHICALLY ANY ACTUAL OR APPARENTCONFLICTS OF INTEREST

OVERVIEW. A “conflict of interest” occurs when a CoveredPerson’s private interest interferes with the interests of, or his service to, the relevant Fund. For example, a conflict of interest would arise if a Covered Person, or a member of the CoveredPerson’s family, receivesimproperpersonalbenefits as a result of the CoveredPerson’sposition with the relevant Fund.

Certain conflicts of interest arise out of the relationshipsbetweenCoveredPersons and the relevant Fund and already are subject to conflict of interest provisions and procedures in the InvestmentCompany Act of 1940 (including the regulationsthereunder, the “1940 Act”) and the InvestmentAdvisers Act of 1940 (including the regulationsthereunder, the “Investment Advisers Act”). Indeed, conflicts of interest are endemic for certain registeredmanagementinvestmentcompanies and those conflicts are both substantially and procedurally dealt with under the 1940 Act. For example,CoveredPersons may not engage in certain transactions with a Fund because of their status as “affiliatedpersons” of such Fund. The complianceprogram of each Fund and the complianceprograms of its investmentadvisers(including sub-advisers),principalunderwriter and administrator or sub-administrator (each a “ServiceProvider” and, collectively, the “ServiceProviders”) are reasonablydesigned to prevent, or identify and correct,violations of many of those provisions,although they are not designed to provideabsoluteassurance as to those matters. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code. See also Section V of this Code.

Althoughtypically not presenting an opportunity for improperpersonal benefit, conflicts arise from, or as a result of, the contractualrelationshipbetween a Fund and its Service Providers of which the CoveredPersons are also officers or employees. As a result, this Code recognizes that the CoveredPersons will, in the normal course of their duties (whether for the Funds or for a Service Provider, or for both), be involved in establishingpolicies and implementingdecisions that will have different effects on the Service Providers and the Funds. The participation of the CoveredPersons in such activities is inherent in the contractualrelationshipsbetween the Funds and their Service Providers and is consistent with the performance by the CoveredPersons of their duties as officers of the relevant Fund. Thus, if performed in conformity with the provisions of the 1940 Act, the InvestmentAdvisers Act, other applicable law and the relevant Fund’s constitutionaldocuments, such activities will be deemed to have been handledethically.Frequently, the 1940 Act establishes, as a mechanism for dealing with conflicts, disclosure to and approval by the Directors/Trustees of a Fund who are not “interestedpersons” of such Fund under the 1940 Act. In addition, it is recognized by the Funds’ Boards of Directors/Trustees(“Boards”) that the CoveredPersons may also be officers or employees of one or more other investmentcompaniescovered by this or other codes and that such service, by itself, does not give rise to a conflict of interest.

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not the subject of provisions of the 1940 Act and the InvestmentAdvisers

2

Act. The following list providesexamples of conflicts of interest under the Code, but CoveredPersons should bear in mind that these examples are not exhaustive. The overarchingprinciple is that the personal interest of a Covered Person should not be placed improperly before the interest of the relevant Fund, unless the personal interest has been disclosed to and approved by other officers of such Fund or such Fund’s IndependentTrustees.

* * * *

Each Covered Person must not:

     • use his personalinfluence or personalrelationshipsimproperly to influenceinvestmentdecisions or financialreporting by the relevant Fund whereby the Covered Person would benefit personally to the detriment of such Fund;

     • cause the relevant Fund to take action, or fail to take action, for the individual personal benefit of the Covered Person rather than the benefit such Fund; or retaliate against any other Covered Person or any employee of the Funds or their Service Providers for reports of potential violations that are made in good faith.

There are some conflict of interest situations that should always be approved by the President of the relevant Fund (or, with respect to activities of the President, by the Chairman of the relevant Fund). These conflict of interest situations are listed below:

     • service on the board of directors or governing board of a publicly traded entity;

     • acceptance of any investmentopportunity or of any material gift or gratuity from any person or entity that does business, or desires to do business, with the relevant Fund. For these purposes,material gifts do not include (i) gifts from a single giver so long as their aggregate annual value does not exceed the equivalent of $100.00 or (ii) attendingbusiness meals, business related conferences,sporting events and other entertainment events at the expense of a giver, so long as the expense is reasonable and both the Covered Person and the giver are present.

     • any ownership interest in, or any consulting or employmentrelationship with, any entities doing business with the relevant Fund, other than a Service Provider or an affiliate of a Service Provider. This restriction shall not apply to or otherwise limit the ownership of publicly traded securities so long as the CoveredPerson’sownership does not exceed more than 2% of the outstandingsecurities of the relevant class.

3

     • direct or indirectfinancial interest in commissions,transactioncharges or spreads paid by the relevant Fund for effectingportfoliotransactions or for selling or redeeming shares other than an interest arising from the CoveredPerson’semployment with a Service Provider or its affiliate. This restriction shall not apply to or otherwise limit the ownership of publicly traded securities so long as the CoveredPerson’sownership does not exceed more than 2% of the particular class of securityoutstanding.

III. DISCLOSURE AND COMPLIANCE

     • No Covered Person should knowinglymisrepresent, or cause others to misrepresent, facts about the relevant Fund to others, whether within or outside such Fund, including to such Fund’s Board and auditors, and to governmentalregulators and self-regulatoryorganizations;

     • each Covered Person should, to the extent appropriate within his area of responsibility, consult with other officers and employees of the Funds and the Service Providers or with counsel to the Funds with the goal of promoting full, fair, accurate, timely and understandabledisclosure in the registrationstatements or periodic reports that the Funds file with, or submit to, the SEC (which, for sake of clarity, does not include any sales literature,omittingprospectuses, or “tombstone”advertisingprepared by the relevant Fund’s principalunderwriter(s)); and

     • it is the responsibility of each Covered Person to promotecompliance with the standards and restrictionsimposed by applicable laws, rules and regulations.

IV. REPORTING AND ACCOUNTABILITY

Each Covered Person must:

     • upon adoption of the Code (or thereafter as applicable, upon becoming a CoveredPerson), affirm in writing to the relevant Fund that he has received, read, and understands the Code;

     • provide full and fair responses to all questions asked in any Trustee and Officer Questionnaireprovided by the relevant Fund as well as with respect to any supplemental request for information; and

     • notify the President of the relevant Fund promptly if he is convinced to a moral certainty that there has been a materialviolation of this Code (with respect to violations by a President, the Covered Person shall report to the Chairman of the relevant Fund).

The President of each Fund is responsible for applying this Code to specificsituations in which questions are presented under it and, in consultation with the Fund’s

4

Chief Compliance Officer (“CCO”), has the authority to interpret this Code in any particularsituation.However, any approvals or waivers sought by the President will be considered by the Chairman of the relevant Fund.

The Funds will follow these procedures in investigating and enforcing this Code:

     • the President will take all appropriate action to investigate any potentialmaterialviolationsreported to him, which actions may include the use of internal or externalcounsel,accountants or other personnel;

     • if, after such investigation, the President believes that no material violation has occurred, the President is not required to take any further action;

     • any matter that the President believes is a material violation will be reported to the Fund’s CCO;

     • if the CCO concurs that a material violation has occurred, it will inform and make a recommendation to the Fund’s Board of Trustees,

which will considerappropriate action, which may include review of, and appropriatemodifications to applicablepolicies and procedures;notification to appropriate personnel of a Service Provider or its board; or a recommendation to dismiss the Covered Officer or remove a CoveredTrustee; and

     • the Board of Trustees may grant waivers under this Code, as it deems appropriate.

V. PUBLICDISCLOSURE OF CHANGES AND WAIVERS

Any amendments to or waivers under this Code relating to a Covered Officer will, to the extent required by the SEC’s rules, be disclosed on the Fund’s website or in the Fund’s N-CSR; amendments to or waivers under this Code relating to a Covered Trustee but not a Covered Officer will NOT be so disclosed. (1)

VI. OTHERPOLICIES AND PROCEDURES

This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes -Oxley Act and the rules and forms applicable to registeredinvestmentcompaniesthereunder. Insofar as other policies or procedures of the Funds or the Funds’ Service Providers govern or purport to govern the behavior or activities of the CoveredPersons who are subject to this Code, they are superseded by this Code to the extent that they conflict with the provisions of this Code. The Funds’ and their Service Providers’s codes of ethics under Rule 17j-1 under the 1940 Act and the Service

(1) The amendment to this Code applying the Code’s provisions to CoveredTrustees is not required to be disclosed. See, E.G., Item 2(c) of Form N-CSR.

5

Providers’s more detailedcompliancepolicies and procedures are separaterequirementsapplying to the CoveredPersons and others, and are not part of this Code.

VII. AMENDMENTS

Any materialamendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the Board.

VIII. CONFIDENTIALITY

All reports and records prepared or maintainedpursuant to this Code will be consideredconfidential and shall be maintained and protectedaccordingly. Except as otherwiserequired by law or this Code, such matters shall not be disclosed to anyone except as permitted by the Board.

IX. INTERNAL USE

The Code is intended solely for the internal use by the Funds and does not constitute an admission, by or on behalf of any Fund, as to any fact, circumstance, or legal conclusion.

Date:

6

EXHIBIT A

REGISTEREDINVESTMENTCOMPANIES

Allianz Funds

Allianz Global Investors Fund ManagementSponsored Closed-End Funds

Fixed Income SHares

Premier VIT

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EXHIBIT B

COVEREDPERSONS

ALLIANZFUNDS

Covered Officers: Blake Moore, Jr., Brian S. Shlissel

CoveredTrustee: David Flattum

FIXED INCOMESHARES

CoveredOfficers: Brian S. Shlissel,Lawrence G. Altadonna

CoveredTrustee: David Flattum

ALLIANZGLOBALINVESTORS FUND MANAGEMENTSPONSOREDCLOSED -END FUNDS

CoveredOfficers: Brian S. Shlissel,Lawrence G. Altadonna

CoveredTrustee: David Flattum

PREMIER VIT

CoveredOfficers: Brian S. Shlissel,Lawrence G. Altadonna

CoveredTrustee: Brian S. Shlissel

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EX-99.CERT

Exhibit 99 Cert.

FORM N-CSR CERTIFICATION

I, Brian S. Shlissel, certify that:

     1. I have reviewed this report Form N-CSR of the PIMCO Floating Rate Strategy Fund;

     2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

     3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report:

     4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

     (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared:

     (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles:

     (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

     (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

     5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

     (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

     (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: November 8, 2005

/s/ Brian S. Shlissel

Brian S. Shlissel
President & Chief Executive Officer

FORM N-CSR CERTIFICATION

I, Lawrence G. Altadonna, certify that:

     1. I have reviewed this report on Form N-CSR of the PIMCO Floating Rate Strategy Fund;

     2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

     3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report:

     4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

     (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared:

     (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles:

     (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

     (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

     5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

     (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

     (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: November 8, 2005

/s/ Lawrence G. Altadonna

Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer

EX-99.906CERT

Exhibit 99.906Cert

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), each of the undersigned officer of PIMCO Floating Rate Strategy Fund (the “Registrant”), do hereby certifies, to such officer’s knowledge, that

     (1) the Annual Report on the Form N-CSR for the period ended August 31, 2005 (the “Form N-CSR”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934: and

     (2) The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Dated: November 8, 2005

/s/ Brian S. Shlissel

Brian S. Shlissel
President & Chief Executive Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the version of this written statement required by Section 906, has been provided to PIMCO Floating Rate Strategy Fund and furnished to the Securities and Exchange Commission or its staff upon request.

This certification is being furnished solely pursuant to 18 U.S.C. ss 1350 and is not being filed as part of the Report or as a separate disclosure document.

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), each of the undersigned officer of PIMCO Floating Rate Strategy Fund (the “Registrant”), do hereby certifies, to such officer’s knowledge, that

     (3) the Annual Report on the Form N-CSR for the period ended August 31, 2005 (the “Form N-CSR”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934: and

     (4) The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Dated: November 8, 2005

/s/ Lawrence G. Altadonna

Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the version of this written statement required by Section 906, has been provided to PIMCO Floating Rate Strategy Fund, and furnished to the Securities and Exchange Commission or its staff upon request.

This certification is being furnished solely pursuant to 18 U.S.C. ss 1350 and is not being filed as part of the Report or as a separate disclosure document.

EX-99.PROXYPOL

PACIFIC INVESTMENT MANAGEMENT COMPANY LLC

PROXY VOTING POLICIES AND PROCEDURES

The following are general proxy voting policies and procedures (“Policies and Procedures”) adopted by Pacific Investment Management Company LLC (“PIMCO”), an investment adviser registered under the Investment Advisers Act of 1940, as amended (“Advisers Act”).(1) PIMCO serves as the investment adviser to a wide range of domestic and international clients, including investment companies registered under the Investment Company Act of 1940, as amended (“1940 Act”) and separate investment accounts for other clients.(2) These Policies and Procedures are adopted to ensure compliance with Rule 206(4)-6 under the Advisers Act, other applicable fiduciary obligations of PIMCO and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”) and interpretations of its staff. In addition to SEC requirements governing advisers, PIMCO’s Policies and Procedures reflect the long-standing fiduciary standards and responsibilities applicable to investment advisers with respect to accounts subject to the Employee Retirement Income Security Act of 1974 (“ERISA”), as set forth in the Department of Labor’s rules and regulations.(3)

PIMCO will implement these Policies and Procedures for each of its respective clients as required under applicable law, unless expressly directed by a client in writing to refrain from voting that client’s proxies. PIMCO’s authority to vote proxies on behalf of its clients is established by its advisory contracts, comparable documents or by an overall delegation of discretionary authority over its client’s assets. Recognizing that proxy voting is a rare event in the realm of fixed income investing and is typically limited to solicitation of consent to changes in features of debt securities, these Policies and Procedures also apply to any voting rights and/or consent rights of PIMCO, on behalf of its clients, with respect to debt securities, including but not limited to, plans of reorganization, and waivers and consents under applicable indentures.(4)

     (1) These Policies and Procedures are adopted by PIMCO pursuant to Rule 206(4)-6 under the Advisers Act, effective August 6, 2003. SEE PROXY VOTING BY INVESTMENT ADVISERS, IA Release No. 2106 (January 31, 2003).

     (2) These Policies and Procedures address proxy voting considerations under U.S. law and regulations and do not address the laws or requirements of other jurisdictions.

     (3) Department of Labor Bulletin 94-2, 29 C.F.R. 2509.94 -2 (July 29, 1994). If a client is subject to ERISA, PIMCO will be responsible for voting proxies with respect to the client’s account, unless the client has expressly retained the right and obligation to vote the proxies, and provided prior written notice to PIMCO of this retention.

     (4) For purposes of these Policies and Procedures, proxy voting includes any voting rights, consent rights or other voting authority of PIMCO on behalf of its clients.

Set forth below are PIMCO’s Policies and Procedures with respect to any voting or consent rights of advisory clients over which PIMCO has discretionary voting authority. These Policies and Procedures may be revised from time to time.

GENERAL STATEMENTS OF POLICY

These Policies and Procedures are designed and implemented in a manner reasonably expected to ensure that voting and consent rights are exercised in the best interests of PIMCO’s clients. Each proxy is voted on a case-by-case basis taking into consideration any relevant contractual obligations as well as other relevant facts and circumstances.

PIMCO may abstain from voting a client proxy under the following circumstances: (1) when the economic effect on shareholders’ interests or the value of the portfolio holding is indeterminable or insignificant; or (2) when the cost of voting the proxies outweighs the benefits.

CONFLICTS OF INTEREST

PIMCO seeks to resolve any material conflicts of interest by voting in good faith in the best interest of its clients. If a material conflict of interest should arise, PIMCO will seek to resolve such conflict in the client’s best interest by pursuing any one of the following courses of action:

1. convening an ad-hoc committee to assess and resolve the conflict;(5)
2. voting in accordance with the instructions/consent of a client after providing notice of and disclosing the conflict to that client;
3. voting the proxy in accordance with the recommendation of an independent third-party service provider;
4. suggesting that the client engage another party to determine how the proxies should be voted;
5. delegating the vote to an independent third-party service provider; or
6. voting in accordance with the factors discussed in these Policies and Procedures.

PIMCO will document the process of resolving any identified material conflict of interest.

     (5) Any committee must be comprised of personnel who have no direct interest in the outcome of the potential conflict.

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REPORTING REQUIREMENTS AND THE AVAILABILITY OF PROXY VOTING RECORDS

Except to the extent required by applicable law or otherwise approved by PIMCO, PIMCO will not disclose to third parties how it voted a proxy on behalf of a client. However, upon request from an appropriately authorized individual, PIMCO will disclose to its clients or the entity delegating the voting authority to PIMCO for such clients (E.G., trustees or consultants retained by the client), how PIMCO voted such client’s proxy. In addition, PIMCO provides its clients with a copy of these Policies and Procedures or a concise summary of these Policies and Procedures: (i) in Part II of Form ADV; (ii) together with a periodic account statement in a separate mailing; or (iii) any other means as determined by PIMCO. The summary will state that these Policies and Procedures are available upon request and will inform clients that information about how PIMCO voted that client’s proxies is available upon request.

PIMCO RECORD KEEPING

PIMCO or its agent maintains proxy voting records as required by Rule 204-2(c) of the Advisers Act. These records include: (1) a copy of all proxy voting policies and procedures; (2) proxy statements (or other disclosures accompanying requests for client consent) received regarding client securities (which may be satisfied by relying on obtaining a copy of a proxy statement from the SEC’s Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system or a third party provided that the third party undertakes to provide a copy promptly upon request); (3) a record of each vote cast by PIMCO on behalf of a client; (4) a copy of any document created by PIMCO that was material to making a decision on how to vote proxies on behalf of a client or that memorializes the basis for that decision; and (5) a copy of each written client request for proxy voting records and any written response from PIMCO to any (written or oral) client request for such records. Additionally, PIMCO or its agent maintains any documentation related to an identified material conflict of interest.

Proxy voting books and records are maintained by PIMCO or its agent in an easily accessible place for a period of five years from the end of the fiscal year during which the last entry was made on such record, the first two years in the offices of PIMCO or its agent.

REVIEW AND OVERSIGHT

PIMCO’s proxy voting procedures are described below. PIMCO’s Compliance Group will provide for the supervision and periodic review, no less than on a quarterly basis, of its proxy voting activities and the implementation of these Policies and Procedures.

Because PIMCO has contracted with State Street Investment Manager Solutions, LLC (“IMS West”) to perform portfolio accounting, securities processing and settlement processing on behalf of PIMCO, certain of the following procedures involve IMS West in administering and implementing the proxy voting process. IMS West will review and monitor the proxy voting process to ensure that proxies are voted on a timely basis.

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1.      TRANSMIT PROXY TO PIMCO. IMS West will forward to PIMCO’s Middle Office Group each proxy received from registered owners of record (E.G., custodian bank or other third party service providers).

2.      CONFLICTS OF INTEREST. PIMCO’s Middle Office Group will review each proxy to determine whether there may be a material conflict between PIMCO and its client. As part of this review, the group will determine whether the issuer of the security or proponent of the proposal is a client of PIMCO, or if a client has actively solicited PIMCO to support a particular position. If no conflict exists, this group will forward each proxy to the appropriate portfolio manager for consideration. However, if a conflict does exist, PIMCO’s Middle Office Group will seek to resolve any such conflict in accordance with these Policies and Procedures.

3.      VOTE. The portfolio manager will review the information, will vote the proxy in accordance with these

Policies and Procedures and will return the voted proxy to PIMCO’s Middle Office Group.

4.      REVIEW. PIMCO’s Middle Office Group will review each proxy that was submitted to and completed by the appropriate portfolio manager. PIMCO’s Middle Office Group will forward the voted proxy back to IMS West with the portfolio manager’s decision as to how it should be voted.

5.      TRANSMITTAL TO THIRD PARTIES. IMS West will document the portfolio manager’s decision for each proxy received from PIMCO’s Middle Office Group in a format designated by the custodian bank or other third party service provider. IMS West will maintain a log of all corporate actions, including proxy voting, which indicates, among other things, the date the notice was received and verified, PIMCO’s response, the date and time the custodian bank or other third party service provider was notified, the expiration date and any action taken.

6.      INFORMATION BARRIERS. Certain entities controlling, controlled by, or under common control with

PIMCO (“Affiliates”) may be engaged in banking, investment advisory, broker-dealer and investment banking activities. PIMCO personnel and PIMCO’s agents are prohibited from disclosing information regarding PIMCO’s voting intentions to any Affiliate. Any PIMCO personnel involved in the proxy voting process who are contacted by an Affiliate regarding the manner in which PIMCO or its delegate intend to vote on a specific issue must terminate the contact and notify the Compliance Group immediately.

CATEGORIES OF PROXY VOTING ISSUES

In general, PIMCO reviews and considers corporate governance issues related to proxy matters and generally supports proposals that foster good corporate governance practices. PIMCO considers each proposal on a case-by-case basis, taking into consideration various factors and all relevant facts and circumstances at the time of the vote. PIMCO may vote proxies as recommended by management on routine matters related to the operation of the issuer and on matters not expected to have a significant economic impact on the issuer and/or shareholders, because PIMCO believes the recommendations by the issuer generally are in shareholders’ best

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interests, and therefore in the best economic interest of PIMCO’s clients. The following is a non-exhaustive list of issues that may be included in proxy materials submitted to clients of PIMCO, and a non-exhaustive list of factors that PIMCO may consider in determining how to vote the client’s proxies.

BOARD OF DIRECTORS

1.      INDEPENDENCE. PIMCO may consider the following factors when voting on director independence issues: (i) majority requirements for the board and the audit, nominating, compensation and/or other board committees; and (ii) whether the issuer adheres to and/or is subject to legal and regulatory requirements.

2.      DIRECTOR TENURE AND RETIREMENT. PIMCO may consider the following factors when voting on limiting the term of outside directors: (i) the introduction of new viewpoints on the board; (ii) a reasonable retirement age for the outside directors; and (iii) the impact on the board’s stability and continuity.

3.      NOMINATIONS IN ELECTIONS. PIMCO may consider the following factors when voting on uncontested elections: (i) composition of the board; (ii) nominee availability and attendance at meetings; (iii) any investment made by the nominee in the issuer; and (iv) long-term corporate performance and the price of the issuer’s securities.

4.      SEPARATION OF CHAIRMAN AND CEO POSITIONS. PIMCO may consider the following factors when voting on proposals requiring that the positions of chairman of the board and the chief executive officer not be filled by the same person: (i) any potential conflict of interest with respect to the board’s ability to review and oversee management’s actions; and (ii) any potential effect on the issuer’s productivity and efficiency.

5.      D&O INDEMNIFICATION AND LIABILITY PROTECTION. PIMCO may consider the following factors when voting on proposals that include director and officer indemnification and liability protection: (i) indemnifying directors for conduct in the normal course of business; (ii) limiting liability for monetary damages for violating the duty of care; (iii) expanding coverage beyond legal expenses to acts that represent more serious violations of fiduciary obligation than carelessness (E.G. negligence); and (iv) providing expanded coverage in cases where a director’s legal defense was unsuccessful if the director was found to have acted in good faith and in a manner that he or she reasonably believed was in the best interests of the company.

6.      STOCK OWNERSHIP. PIMCO may consider the following factors when voting on proposals on mandatory share ownership requirements for directors: (i) the benefits of additional vested interest in the issuer’s stock; (ii) the ability of a director to fulfill his duties to the issuer regardless of the extent of his stock ownership; and (iii) the impact of limiting the number of persons qualified to be directors.

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PROXY CONTESTS AND PROXY CONTEST DEFENSES

1.      CONTESTED DIRECTOR NOMINATIONS. PIMCO may consider the following factors when voting on proposals for director nominees in a contested election: (i) background and reason for the proxy contest; (ii) qualifications of the director nominees; (iii) management’s track record; (iv) the issuer’s long-term financial performance within its industry; (v) assessment of what each side is offering shareholders; (vi) the likelihood that the proposed objectives and goals can be met; and (vii) stock ownership positions of the director nominees.

2.      REIMBURSEMENT FOR PROXY SOLICITATION EXPENSES. PIMCO may consider the following factors when voting on reimbursement for proxy solicitation expenses: (i) identity of the persons who will pay the expenses; (ii) estimated total cost of solicitation; (iii) total expenditures to date; (iv) fees to be paid to proxy solicitation firms; and (v) when applicable, terms of a proxy contest settlement.

3.      ABILITY TO ALTER THE SIZE OF THE BOARD BY SHAREHOLDERS. PIMCO may consider whether the proposal seeks to fix the size of the board and/or require shareholder approval to alter the size of the board.

4.      ABILITY TO REMOVE DIRECTORS BY SHAREHOLDERS. PIMCO may consider whether the proposal allows shareholders to remove directors with or without cause and/or allow shareholders to elect directors and fill board vacancies.

5.      CUMULATIVE VOTING. PIMCO may consider the following factors when voting on cumulative voting proposals: (i) the ability of significant stockholders to elect a director of their choosing; (ii) the ability of minority shareholders to concentrate their support in favor of a director(s) of their choosing; and (iii) any potential limitation placed on the director’s ability to work for all shareholders.

6.      SUPERMAJORITY SHAREHOLDER REQUIREMENTS. PIMCO may consider all relevant factors, including but not limited to limiting the ability of shareholders to effect change when voting on supermajority requirements to approve an issuer’s charter or bylaws, or to approve a merger or other significant business combination that would require a level of voting approval in excess of a simple majority.

TENDER OFFER DEFENSES

1.      CLASSIFIED BOARDS. PIMCO may consider the following factors when voting on classified boards: (i) providing continuity to the issuer; (ii) promoting long-term planning for the issuer; and (iii) guarding against unsolicited takeovers.

2.      POISON PILLS. PIMCO may consider the following factors when voting on poison pills: (i) supporting proposals to require a shareholder vote on other shareholder rights plans; (ii) ratifying or redeeming a poison pill in the interest of protecting the value of the issuer; and (iii) other alternatives to prevent a takeover at a price clearly below the true value of the issuer.

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3.      FAIR PRICE PROVISIONS. PIMCO may consider the following factors when voting on proposals with respect to fair price provisions: (i) the vote required to approve the proposed acquisition; (ii) the vote required to repeal the fair price provision; (iii) the mechanism for determining fair price; and (iv) whether these provisions are bundled with other anti-takeover measures (E.G., supermajority voting requirements) that may entrench management and discourage attractive tender offers.

CAPITAL STRUCTURE

1.      STOCK AUTHORIZATIONS. PIMCO may consider the following factors to help distinguish between legitimate proposals to authorize increases in common stock for expansion and other corporate purchases and those proposals designed primarily as an anti-takeover device: (i) the purpose and need for the stock increase; (ii) the percentage increase with respect to the authorization currently in place; (iii) voting rights of the stock; and (iv) overall capitalization structure of the issuer.

2.      ISSUANCE OF PREFERRED STOCK. PIMCO may consider the following factors when voting on the issuance of preferred stock: (i) whether the new class of preferred stock has unspecified voting, conversion, dividend distribution, and other rights; (ii) whether the issuer expressly states that the stock will not be used as a takeover defense or carry superior voting rights; (iii) whether the issuer specifies the voting, dividend, conversion, and other rights of such stock and the terms of the preferred stock appear reasonable; and (iv) whether the stated purpose is to raise capital or make acquisitions in the normal course of business.

3.      STOCK SPLITS. PIMCO may consider the following factors when voting on stock splits: (i) the percentage increase in the number of shares with respect to the issuer’s existing authorized shares; and (ii) the industry that the issuer is in and the issuer’s performance in that industry.

4.      REVERSED STOCK SPLITS. PIMCO may consider the following factors when voting on reverse stock splits: (i) the percentage increase in the shares with respect to the issuer’s existing authorized stock; and (ii) issues related to delisting the issuer’s stock.

EXECUTIVE AND DIRECTOR COMPENSATION

1.      STOCK OPTION PLANS. PIMCO may consider the following factors when voting on stock option plans: (i) whether the stock option plan expressly permits the repricing of options; (ii) whether the plan could result in earnings dilution of greater than a specified percentage of shares outstanding; (iii) whether the plan has an option exercise price below the market price on the day of the grant; (iv) whether the proposal relates to an amendment to extend the term of options for persons leaving the firm voluntarily or for cause; and (v) whether the stock option plan has certain other embedded features.

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2.      DIRECTOR COMPENSATION. PIMCO may consider the following factors when voting on director compensation: (i) whether director shares are at the same market risk as those of the issuer’s shareholders; and (ii) how stock option programs for outside directors compare with the standards of internal stock option programs.

3.      GOLDEN AND TIN PARACHUTES. PIMCO may consider the following factors when voting on golden and/or tin parachutes: (i) whether they will be submitted for shareholder approval; and (ii) the employees covered by the plan and the quality of management.

STATE OF INCORPORATION

STATE TAKEOVER STATUTES. PIMCO may consider the following factors when voting on proposals to opt out of a state takeover statute: (i) the power the statute vests with the issuer’s board; (ii) the potential of the statute to stifle bids; and (iii) the potential for the statute to empower the board to negotiate a better deal for shareholders.

MERGERS AND RESTRUCTURINGS

1.      MERGERS AND ACQUISITIONS. PIMCO may consider the following factors when voting on a merger and/or acquisition: (i) anticipated financial and operating benefits as a result of the merger or acquisition; (ii) offer price; (iii) prospects of the combined companies; (iv) how the deal was negotiated; and (v) changes in corporate governance and the potential impact on shareholder rights. PIMCO may also consider what impact the merger or acquisition may have on groups/organizations other than the issuer’s shareholders.

2.      CORPORATE RESTRUCTURINGS. With respect to a proxy proposal that includes a spin-off, PIMCO may consider the tax and regulatory advantages, planned use of sale proceeds, market focus, and managerial incentives. With respect to a proxy proposal that includes an asset sale, PIMCO may consider the impact on the balance sheet or working capital and the value received for the asset. With respect to a proxy proposal that includes a liquidation, PIMCO may consider management’s efforts to pursue alternatives, the appraisal value of assets, and the compensation plan for executives managing the liquidation.

INVESTMENT COMPANY PROXIES

For a client that is invested in an investment company, PIMCO votes each proxy of the investment company on a case-by-case basis and takes all reasonable steps to ensure that proxies are voted consistent with all applicable investment policies of the client and in accordance with any resolutions or other instructions approved by authorized persons of the client.

For a client that is invested in an investment company that is advised by PIMCO or its affiliates, if there is a conflict of interest which may be presented when voting for the client (E.G., a proposal to approve a contract between PIMCO and the investment company), PIMCO will resolve the conflict by doing any one of the following: (i) voting in accordance with the instructions/consent of the client after providing notice of and disclosing the conflict to that

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client; (ii) voting the proxy in accordance with the recommendation of an independent third-party service provider; or (iii) delegating the vote to an independent third-party service provider.

1.      ELECTION OF DIRECTORS OR TRUSTEES. PIMCO may consider the following factors when voting on the director or trustee nominees of a mutual fund: (i) board structure, director independence and qualifications, and compensation paid by the fund and the family of funds; (ii) availability and attendance at board and committee meetings; (iii) investments made by the nominees in the fund; and (iv) the fund’s performance.

2.      CONVERTING CLOSED-END FUND TO OPEN-END FUND. PIMCO may consider the following factors when voting on converting a closed-end fund to an open-end fund: (i) past performance as a closed-end fund; (ii) the market in which the fund invests; (iii) measures taken by the board to address any discount of the fund’s shares; (iv) past shareholder activism; (v) board activity; and (vi) votes on related proposals.

3.      PROXY CONTESTS. PIMCO may consider the following factors related to a proxy contest: (i) past performance of the fund; (ii) the market in which the fund invests; (iii) measures taken by the board to address past shareholder activism; (iv) board activity; and (v) votes on related proposals.

4.      INVESTMENT ADVISORY AGREEMENTS. PIMCO may consider the following factors related to approval of an investment advisory agreement: (i) proposed and current fee arrangements/schedules; (ii) fund category/investment objective; (iii) performance benchmarks; (iv) share price performance as compared with peers; and (v) the magnitude of any fee increase and the reasons for such fee increase.

5.      POLICIES ESTABLISHED IN ACCORDANCE WITH THE 1940 ACT. PIMCO may consider the following factors: (i) the extent to which the proposed changes fundamentally alter the investment focus of the fund and comply with SEC interpretation; (ii) potential competitiveness; (iii) regulatory developments; and (iv) current and potential returns and risks.

6.      CHANGING A FUNDAMENTAL RESTRICTION TO A NON-FUNDAMENTAL RESTRICTION.

PIMCO may consider the following when voting on a proposal to change a fundamental restriction to a non-fundamental restriction: (i) reasons given by the board and management for the change; and (ii) the projected impact of the change on the fund’s portfolio.

7.      DISTRIBUTION AGREEMENTS. PIMCO may consider the following when voting on a proposal to approve a distribution agreement: (i) fees charged to comparably sized funds with similar investment objectives; (ii) the distributor’s reputation and past performance; and (iii) competitiveness of the fund among other similar funds in the industry.

8.      NAMES RULE PROPOSALS. PIMCO may consider the following factors when voting on a proposal to change a fund name, consistent with Rule 35d-1 of the 1940 Act: (i) whether the fund invests a minimum of 80% of its assets in the type of investments suggested by the

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proposed name; (ii) the political and economic changes in the target market; and (iii) current asset composition.

9.      DISPOSITION OF ASSETS/TERMINATION/LIQUIDATION. PIMCO may consider the following when voting on a proposal to dispose of fund assets, terminate, or liquidate the fund: (i) strategies employed to salvage the fund; (ii) the fund’s past performance; and (iii) the terms of the liquidation.

10.      CHANGES TO CHARTER DOCUMENTS. PIMCO may consider the following when voting on a proposal to change a fund’s charter documents: (i) degree of change implied by the proposal; (ii) efficiencies that could result; (iii) state of incorporation; and (iv) regulatory standards and implications.

11.      CHANGING THE DOMICILE OF A FUND. PIMCO may consider the following when voting on a proposal to change the domicile of a fund: (i) regulations of both states; (ii) required fundamental policies of both states; and (iii) the increased flexibility available.

12.      CHANGE IN FUND’S SUBCLASSIFICATION. PIMCO may consider the following when voting on a change in a fund’s subclassification from diversified to non-diversified or to permit concentration in an industry: (i) potential competitiveness; (ii) current and potential returns; (iii) risk of concentration; and (iv) consolidation in the target industry.

DISTRESSED AND DEFAULTED SECURITIES

1.      WAIVERS AND CONSENTS. PIMCO may consider the following when determining whether to support a waiver or consent to changes in provisions of indentures governing debt securities which are held on behalf of clients: (i) likelihood that the granting of such waiver or consent will potentially increase recovery to clients; (ii) potential for avoiding cross-defaults under other agreements; and (iii) likelihood that deferral of default will give the obligor an opportunity to improve its business operations.

2.      VOTING ON CHAPTER 11 PLANS OF LIQUIDATION OR REORGANIZATION. PIMCO may consider the following when determining whether to vote for or against a Chapter 11 plan in a case pending with respect to an obligor under debt securities which are held on behalf of clients: (i) other alternatives to the proposed plan; (ii) whether clients are treated appropriately and in accordance with applicable law with respect to their distributions; (iii) whether the vote is likely to increase or decrease recoveries to clients.

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MISCELLANEOUS PROVISIONS

1.      SUCH OTHER BUSINESS. Proxy ballots sometimes contain a proposal granting the board authority to “transact such other business as may properly come before the meeting.” PIMCO may consider the following factors when developing a position on proxy ballots that contain a proposal granting the board authority to “transact such other business as may properly come before the meeting”: (i) whether the board is limited in what actions it may legally take within such authority; and (ii) PIMCO’s responsibility to consider actions before supporting them.

2.      EQUAL ACCESS. PIMCO may consider the following factors when voting on equal access: (i) the opportunity for significant company shareholders to evaluate and propose voting recommendations on proxy proposals and director nominees, and to nominate candidates to the board; and (ii) the added complexity and burden of providing shareholders with access to proxy materials.

3.      CHARITABLE CONTRIBUTIONS. PIMCO may consider the following factors when voting on charitable contributions: (i) the potential benefits to shareholders; and (ii) the potential impact on the issuer’s resources that could have been used to increase shareholder value.

4.      SPECIAL INTEREST ISSUES. PIMCO may consider the following factors when voting on special interest issues: (i) the long-term benefit to shareholders of promoting corporate accountability and responsibility on social issues; (ii) management’s responsibility with respect to special interest issues; (iii) any economic costs and restrictions on management; (iv) a client’s instruction to vote proxies in a specific manner and/or in a manner different from these Policies and Procedures; and (v) the responsibility to vote proxies for the greatest long-term shareholder value.

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232326.11.03

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