PIMCO VARIABLE INSURANCE TRUST, 497, 2000-05-19

PIMCO VARIABLE INSURANCE TRUST
497, 2000-05-19

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<PAGE>

[LOGO] PIMCO Funds Prospectus

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PIMCO INTERMEDIATE DURATION BOND PORTFOLIO
Variable Total Return Bond Portfolio
Insurance High Yield Bond Portfolio
Trust
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April 1, 2000 LONG DURATION BOND PORTFOLIO
Long-Term U.S. Government Bond Portfolio
Share Class
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Adm Admini- INTERNATIONAL BOND PORTFOLIO
strative Foreign Bond Portfolio

This cover is not part of the Prospectus

[LOGO OF PIMCO FUNDS]
<PAGE>

Prospectus

PIMCO This Prospectus describes the Total Return Bond, High Yield Bond,
Variable Long-Term U.S. Government Bond, and Foreign Bond Portfolios (the
Insurance "Portfolios") which are separate investment portfolios offered by
Trust the PIMCO Variable Insurance Trust (the "Trust"). The Portfolios
provide access to the professional investment management services
April 1, offered by Pacific Investment Management Company ("PIMCO"). The
2000 investments made by the Portfolios at any given time are not
expected to be the same as those made by other mutual funds for
Share which PIMCO acts as investment adviser, including mutual funds
Class with investment objectives and strategies similar to those of the
Portfolios. Accordingly, the performance of the Portfolios can be
Admini- expected to vary from that of the other mutual funds.
strative
This Prospectus explains what you should know about the Portfolios
before you invest. Please read it carefully.

Shares of the Portfolios currently are sold to segregated asset
accounts ("Separate Accounts") of insurance companies that fund
variable annuity contracts and variable life insurance policies
("Variable Contracts"). Assets in the Separate Account are
invested in shares of the Portfolios in accordance with allocation
instructions received from owners of the Variable Contracts
("Variable Contract Owners"). Variable Contract Owners do not deal
directly with the Portfolios to purchase or redeem shares. The
allocation rights of Variable Contract Owners are described in the
accompanying Separate Account prospectus. Shares of the Portfolios
also may be sold to qualified pension and retirement plans outside
of the separate account context.

This Prospectus should be read in conjunction with the prospectus
of the Separate Account. Both prospectuses should be read
carefully and retained for future reference.

The Securities and Exchange Commission has not approved or
disapproved these securities, or determined if this Prospectus is
truthful or complete. Any representation to the contrary is a
criminal offense.

PIMCO Variable Insurance Trust
1
<PAGE>

Table of Contents

<TABLE>
<S> <C>
Summary Information.............................................. 3
Portfolio Summaries.............................................. 5
Total Return Portfolio......................................... 5
High Yield Portfolio........................................... 7
Long-Term U.S. Government Portfolio............................ 9
Foreign Bond Portfolio......................................... 11
Summary of Principal Risks....................................... 13
Management of the Portfolios..................................... 16
Investment Options............................................... 18
Purchases and Redemptions........................................ 18
How Portfolio Shares are Priced.................................. 19
Tax Consequences................................................. 20
Characteristics and Risks of Securities and Investment
Techniques...................................................... 21
Financial Highlights............................................. 30
Appendix A--Description of Securities Ratings.................... A-1
</TABLE>

Prospectus
2
<PAGE>

Summary Information

The table below compares certain investment characteristics of the Portfolios.
Other important characteristics are described in the individual Portfolio
Summaries beginning on page 5. Following the table are certain key concepts
which are used throughout the Prospectus.

<TABLE>
<CAPTION>
Non-U.S.
Dollar
Credit Denominated
Main Investments Duration Quality(1) Securities(2)
- -------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C> <C>
Intermediate Total Return Bond Intermediate 3-6 years B to Aaa; max 10% 0-20%(3)
Duration Bond maturity fixed below Baa
Portfolios income securities
----------------------------------------------------------------------------------------
High Yield Bond Higher yielding 2-6 years B to Aaa; max 65% 0-15%(4)
fixed income below Baa
securities
- -------------------------------------------------------------------------------------------------------
Long Duration Long-Term Long-term maturity (Greater than A to Aaa 0%
Bond U.S. Government fixed income or equal to)
Portfolio securities 8 years
- -------------------------------------------------------------------------------------------------------
International Foreign Bond Intermediate 3-7 years B to Aaa; max (Greater than
Bond maturity hedged 10% below Baa or equal to)
Portfolio non-U.S. fixed 85%(5)
income securities
- -------------------------------------------------------------------------------------------------------
</TABLE>
(1) As rated by Moody's Investors Service, Inc., or equivalently rated by
Standard & Poor's Ratings Services, or if unrated, determined by PIMCO to
be of comparable quality.
(2) Each Portfolio (except the Long-Term U.S. Government Portfolio) may invest
beyond this limit in U.S. dollar-denominated securities.
(3) The percentage limitation relates to non-U.S. dollar-denominated
securities.
(4) The percentage limitation relates to euro-denominated securities.
(5) The percentage limitation relates to securities of foreign issuers,
denominated in any currency.

3 PIMCO Variable Insurance Trust
<PAGE>

Summary Information (continued)
Fixed The "Fixed Income Portfolios" are the Total Return Bond, High
Income Yield Bond, Long-Term U.S. Government Bond, and Foreign Bond
Instruments Portfolios. Each of the Fixed Income Portfolios differs from the
others primarily in the length of the Portfolio's duration or the
proportion of its investments in certain types of fixed income
securities. Each Fixed Income Portfolio invests at least 65% of
its assets in "Fixed Income Instruments," which as used in this
Prospectus includes:

. securities issued or guaranteed by the U.S. Government, its
agencies or government-sponsored enterprises ("U.S. Government
Securities");
. corporate debt securities of U.S. and non-U.S. issuers,
including convertible securities and corporate commercial paper;
. mortgage-backed and other asset-backed securities;
. inflation-indexed bonds issued both by governments and
corporations;
. structured notes, including hybrid or "indexed" securities,
event-linked bonds and loan participations;
. delayed funding loans and revolving credit facilities;
. bank certificates of deposit, fixed time deposits and bankers'
acceptances;
. repurchase agreements and reverse repurchase agreements;
. debt securities issued by states or local governments and their
agencies, authorities and other instrumentalities;
. obligations of non-U.S. governments or their subdivisions,
agencies and instrumentalities; and
. obligations of international agencies or supranational entities.

Duration Duration is a measure of the expected life of a fixed income
security that is used to determine the sensitivity of a security's
price to changes in interest rates. The longer a security's
duration, the more sensitive it will be to changes in interest
rates. Similarly, a Portfolio with a longer average portfolio
duration will be more sensitive to changes in interest rates than
a Portfolio with a shorter average portfolio duration.

Credit In this Prospectus, references are made to credit ratings of debt
Ratings securities which measure an issuer's expected ability to pay
principal and interest on time. Credit ratings are determined by
rating organizations, such as Standard & Poor's Rating Service
("S&P") or Moody's Investors Service, Inc. ("Moody's"). The
following terms are generally used to describe the credit quality
of debt securities depending on the security's credit rating or,
if unrated, credit quality as determined by PIMCO:

. high quality
. investment grade
. below investment grade ("high yield securities" or "junk bonds")

For a further description of credit ratings, see "Appendix A--
Description of Securities Ratings."

Portfolio The Portfolios provide a broad range of investment choices. The
Descrip- following summaries identify each Portfolio's investment
tions, objective, principal investments and strategies, principal risks,
Performance performance information and fees and expenses. A more detailed
and Fees "Summary of Principal Risks" describing principal risks of
investing in the Portfolios begins after the Portfolio Summaries.

It is possible to lose money on investments in the Portfolios.

An investment in a Portfolio is not a deposit of a bank and is
not guaranteed or insured by the Federal Deposit Insurance
Corporation or any other government agency.

Prospectus
4
<PAGE>

PIMCO Total Return Portfolio

- --------------------------------------------------------------------------------
Principal Investment Portfolio Focus Credit Quality
Investments Objective Intermediate B to Aaa; maximum
and Seeks maximum maturity fixed 10% below Baa
Strategies total return, income
consistent with securities Dividend Frequency
preservation of Declared daily and
capital and Average Portfolio distributed monthly
prudent Duration
investment 3-6 years
management

The Portfolio seeks to achieve its investment objective by
investing under normal circumstances at least 65% of its assets in
a diversified portfolio of Fixed Income Instruments of varying
maturities. The average portfolio duration of this Portfolio
normally varies within a three- to six-year time frame based on
PIMCO's forecast for interest rates.

The Portfolio invests primarily in investment grade debt
securities, but may invest up to 10% of its assets in high yield
securities ("junk bonds") rated B or higher by Moody's or S&P or,
if unrated, determined by PIMCO to be of comparable quality. The
Portfolio may invest up to 20% of its assets in securities
denominated in foreign currencies, and may invest beyond this
limit in U.S. dollar-denominated securities of foreign issuers.
The Portfolio will normally hedge at least 75% of its exposure to
foreign currency to reduce the risk of loss due to fluctuations in
currency exchange rates.

The Portfolio may invest all of its assets in derivative
instruments, such as options, futures contracts or swap
agreements, or in mortgage- or asset-backed securities. The
Portfolio may lend its portfolio securities to brokers, dealers
and other financial institutions to earn income. The Portfolio may
seek to obtain market exposure to the securities in which it
primarily invests by entering into a series of purchase and sale
contracts or by using other investment techniques (such as buy
backs or dollar rolls). The "total return" sought by the Portfolio
consists of income earned on the Portfolio's investments, plus
capital appreciation, if any, which generally arises from
decreases in interest rates or improving credit fundamentals for a
particular sector or security.

- --------------------------------------------------------------------------------
Principal Among the principal risks of investing in the Portfolio, which
Risks could adversely affect its net asset value, yield and total
return, are:

. Interest Rate . Derivatives . Currency Risk
Risk Risk . Leveraging
. Credit Risk . Liquidity Risk Risk
. Market Risk . Mortgage Risk . Management
. Issuer Risk . Foreign Risk
Investment Risk

Please see "Summary of Principal Risks" following the Portfolio
Summaries for a description of these and other risks of investing
in the Portfolio.

- --------------------------------------------------------------------------------
Performance The top of the next page shows summary performance information for
Information the Portfolio in a bar chart and an Average Annual Total Returns
table. The information provides some indication of the risks of
investing in the Portfolio by showing changes in its performance
from year to year and by showing how the Portfolio's average
annual returns compare with the returns of a broad-based
securities market index. The bar chart and the information to its
right show performance of the Portfolio's Administrative Class
Shares. The bar chart and table do not reflect Variable Contract
fees and expenses. If they did, performance would have been lower.
Past performance is no guarantee of future results.

5 PIMCO Variable Insurance Trust
<PAGE>

PIMCO Total Return Portfolio (continued)

Calendar Year Total Returns -- Administrative Class

<TABLE>
<S> <C>
Highest and Lowest Quarter Returns
[GRAPH] (for periods shown in the bar chart)
------------------------------------
'98 '99 Highest (3rd Qtr. '98) 5.43%
---- ---- ------------------------------------
8.61% -0.58% Lowest (2nd Qtr. '99) (0.94%)
</TABLE>
Calendar Year End (through 12/31)

Average Annual Total Returns (for periods ended 12/31/99)

<TABLE>
<CAPTION>
Portfolio
Inception
1 Year (12/31/97)
--------------------------------------------------------------------------------------
<S> <C> <C>
Administrative Class (0.58%) 3.91%
--------------------------------------------------------------------------------------
Lehman Aggregate Bond Index(1) (0.82%) 3.82%
--------------------------------------------------------------------------------------
</TABLE>

(1) The Lehman Brothers Aggregate Bond Index is an unmanaged index
of investment grade, U.S. dollar-denominated fixed income
securities of domestic issuers having a maturity greater than
one year. It is not possible to invest directly in the index.

- --------------------------------------------------------------------------------
Fees and These tables describe the fees and expenses you may pay if you buy
Expenses and hold Administrative Class shares of the Portfolio:
of the
Portfolio Shareholder Fees (fees paid directly from your investment) None

Annual Portfolio Operating Expenses (expenses that are deducted
from Portfolio assets)

Total Annual Net Portfolio
Advisory Service Other Portfolio Operating Expense Operating
Share Class Fees Fees Expenses Expenses Reduction(2) Expenses
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Administrative 0.25% 0.15% 0.29%(1) 0.69% (0.04%) 0.65%
------------------------------------------------------------------------------------------------
</TABLE>

(1) "Other Expenses" reflect a 0.25% administrative fee and 0.04%
representing the Portfolio's organizational expenses as
attributed to the class and pro rata Trustees' fees.
(2) PIMCO has contractually agreed to reduce total annual
portfolio operating expenses for the Administrative Class
shares to the extent they would exceed, due to the payment of
organizational expenses and Trustees' fees, 0.65% of average
daily net assets. Under the Expense Limitation Agreement,
PIMCO may recoup these waivers and reimbursements in future
periods, not exceeding three years, provided total expenses,
including such recoupment, do not exceed the annual expense
limit.

Examples. The Examples are intended to help you compare the cost
of investing in Administrative Class shares of the Portfolio with
the costs of investing in other mutual funds. The Examples assume
that you invest $10,000 in the noted class of shares for the time
periods indicated, and then redeem all your shares at the end of
those periods. The Examples also assume that your investment has a
5% return each year, the reinvestment of all dividends and
distributions, and that the Portfolio's operating expenses remain
the same. Although your actual costs may be higher or lower, the
Examples show what your costs would be based on these assumptions.

<TABLE>
<CAPTION>
Share Class Year 1 Year 3 Year 5 Year 10
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Administrative $66 $217 $380 $855
---------------------------------------------------------------------------------------
</TABLE>

Prospectus 6
<PAGE>

PIMCO High Yield Portfolio

- --------------------------------------------------------------------------------
Principal Investment Portfolio Focus Credit Quality
Investments Objective Higher yielding B to Aaa; minimum
and Seeks maximum fixed income 65% below Baa
Strategies total return, securities
consistent with Dividend Frequency
preservation of Average Portfolio Declared daily and
capital and Duration distributed monthly
prudent 2-6 years
investment
management

The Portfolio seeks to achieve its investment objective by
investing under normal circumstances at least 65% of its assets in
a diversified portfolio of high yield securities ("junk bonds")
rated below investment grade but rated at least B by Moody's or
S&P, or, if unrated, determined by PIMCO to be of comparable
quality. The remainder of the Portfolio's assets may be invested
in investment grade Fixed Income Instruments. The average
portfolio duration of this Portfolio normally varies within a two-
to six-year time frame based on PIMCO's forecast for interest
rates. The Portfolio may invest without limit in U.S. dollar-
denominated securities of foreign issuers. The Portfolio may
invest up to 15% of its assets in euro-denominated securities. The
Portfolio normally will hedge at least 75% of its exposure to the
euro to reduce the risk of loss due to fluctuations in currency
exchange rates.

The Portfolio may invest up to 15% of its assets in derivative
instruments, such as options, futures contracts or swap
agreements. The Portfolio may invest all of its assets in
mortgage- or asset-backed securities. The Portfolio may lend its
portfolio securities to brokers, dealers, and other financial
institutions to earn income. The Portfolio may seek to obtain
market exposure to the securities in which it primarily invests by
entering into a series of purchase and sale contracts or by using
other investment techniques (such as buy backs or dollar rolls).
The "total return" sought by the Portfolio consists of income
earned on the Portfolio's investments, plus capital appreciation,
if any, which generally arises from decreases in interest rates or
improving credit fundamentals for a particular sector or security.

. Interest Rate Risk . Issuer Risk . Foreign Investment
. Credit Risk . Liquidity Risk Risk
. High Yield Risk . Derivatives Risk . Currency Risk
. Market Risk . Mortgage Risk . Leveraging Risk
. Management Risk

Please see "Summary of Principal Risks" following the Portfolio
Summaries for a description of these and other risks of investing
in the Portfolio.

7 PIMCO Variable Insurance Trust
<PAGE>

PIMCO High Yield Portfolio (continued)

Calendar Year Total Returns -- Administrative Class
<TABLE>
<S> <C>
Highest and Lowest Quarter Returns
[GRAPH] (for periods shown in the bar chart)
------------------------------------
'99 Highest (1st Qtr.'99) 2.00%
---- ------------------------------------
3.01% Lowest (2nd Qtr.'99) (0.51%)

</TABLE>
Calendar Year End (through 12/31)

Average Annual Total Returns (for periods ended 12/31/99)

<TABLE>
<CAPTION>
Portfolio
Inception
1 Year (04/30/98)
------------------------------------------------------------------------------------------
<S> <C> <C>
Administrative Class 3.01% 2.88%
------------------------------------------------------------------------------------------
Lehman Brothers BB Intermediate
Corporate Index(1) 2.20% 3.02%
------------------------------------------------------------------------------------------
</TABLE>

(1) The Lehman Brothers BB Intermediate Corporate Index is an
unmanaged index comprised of various fixed income securities
rated BB with an average duration of 4.40 years as of
12/31/99. It is not possible to invest directly in the index.

Annual Portfolio Operating Expenses (expenses that are deducted
from Portfolio assets)

<TABLE>
<CAPTION>
Total Annual Net Portfolio
Advisory Service Other Portfolio Operating Expense Operating
Share Class Fees Fees Expenses Expenses Reduction(2) Expenses
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Administrative 0.25% 0.15% 0.35%(1) 0.75% 0.00% 0.75%
------------------------------------------------------------------------------------------
</TABLE>

(1) "Other Expenses" reflects a 0.35% administrative fee.
(2) PIMCO has contractually agreed to reduce total annual
portfolio operating expenses for the Administrative Class
shares to the extent they would exceed, due to the payment of
organizational expenses and Trustees' fees, 0.75% of average
daily net assets. Under the Expense Limitation Agreement,
PIMCO may recoup these waivers and reimbursements in future
periods, not exceeding three years, provided total expenses,
including such recoupment, do not exceed the annual expense
limit.

<TABLE>
<CAPTION>
Share Class Year 1 Year 3 Year 5 Year 10
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Administrative $77 $240 $417 $930
--------------------------------------------------------------------------------------
</TABLE>

Prospectus 8
<PAGE>

PIMCO Long-Term U.S. Government Portfolio

- --------------------------------------------------------------------------------
Principal Investment Portfolio Focus Credit Quality
Investments Objective Long-term A to Aaa
and Seeks maximum maturity
Strategies total return, fixed income Dividend Frequency
consistent with securities Declared daily and
preservation of distributed monthly
capital and Average Portfolio
prudent Duration
investment (greater than or
management =) 8 years

The Portfolio seeks to achieve its investment objective by
investing under normal circumstances at least 65% of its assets in
a diversified portfolio of fixed income securities that are issued
or guaranteed by the U.S. Government, its agencies or government-
sponsored enterprises ("U.S. Government Securities"). Assets not
invested in U.S. Government Securities may be invested in other
types of Fixed Income Instruments. The Portfolio also may obtain
exposure to U.S. Government Securities through the use of futures
contracts (including related options) with respect to such
securities, and options on such securities, when PIMCO deems it
appropriate to do so. While PIMCO may invest in derivatives at any
time it deems appropriate, it will generally do so when it
believes that U.S. Government Securities are overvalued relative
to derivative instruments. This Portfolio will normally have a
minimum average portfolio duration of eight years. For point of
reference, the dollar-weighted average portfolio maturity of the
Portfolio is normally expected to be more than ten years.

The Portfolio's investments in Fixed Income Instruments are
limited to those of investment grade U.S. dollar-denominated
securities of U.S. issuers that are rated at least A by Moody's or
S&P, or, if unrated, determined by PIMCO to be of comparable
quality. In addition, the Portfolio may only invest up to 10% of
its assets in securities rated A by Moody's or S&P, and may only
invest up to 25% of its assets in securities rated Aa by Moody's
or AA by S&P.

The Portfolio may invest all of its assets in derivative
instruments, such as options, futures contracts or swap
agreements, or in mortgage-backed securities. The Portfolio may
lend its portfolio securities to brokers, dealers and other
financial institutions to earn income. The Portfolio may seek to
obtain market exposure to the securities in which it primarily
invests by entering into a series of purchase and sale contracts
or by using other investment techniques (such as buy backs or
dollar rolls). The "total return" sought by the Portfolio consists
of income earned on the Portfolio's investments, plus capital
appreciation, if any, which generally arises from decreases in
interest rates or improving credit fundamentals for a particular
sector or security.

. Interest Rate . Issuer Risk . Leveraging Risk
Risk . Derivatives Risk . Management Risk
. Credit Risk . Mortgage Risk
. Market Risk

Please see "Summary of Principal Risks" following the Portfolio
Summaries for a description of these and other risks of investing
in the Portfolio.

- --------------------------------------------------------------------------------
Performance Performance information for this Portfolio is not provided because
Information it has not been in operation for a full calendar year.

9 PIMCO Variable Insurance Trust
<PAGE>

PIMCO Long-Term U.S. Government Portfolio (continued)

Annual Portfolio Operating Expenses (expenses that are deducted
from Portfolio assets)

<TABLE>
<CAPTION>
Total Annual Net Portfolio
Advisory Service Other Portfolio Operating Expense Operating
Share Class Fees Fees Expenses Expenses Reduction(2) Expenses
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Administrative 0.25% 0.15% 0.31%(1) 0.71% (0.06%) 0.65%
----------------------------------------------------------------------------------------
</TABLE>

(1) "Other Expenses" reflect a 0.25% administrative fee and 0.06%
representing the Portfolio's organizational expenses as
attributed to the class and pro rata Trustees' fees.
(2) PIMCO has contractually agreed to reduce total annual
portfolio operating expenses for the Administrative Class
shares to the extent they would exceed, due to the payment of
organizational expenses and Trustees' fees, 0.65% of average
daily net assets. Under the Expense Limitation Agreement,
PIMCO may recoup these waivers and reimbursements in future
periods, not exceeding three years, provided total expenses,
including such recoupment, do not exceed the annual expense
limit.

<TABLE>
<CAPTION>
Share Class Year 1 Year 3
-----------------------------------------------------------------------------------------
<S> <C> <C>
Administrative $66 $221
-----------------------------------------------------------------------------------------
</TABLE>

Prospectus 10
<PAGE>

PIMCO Foreign Bond Portfolio

- --------------------------------------------------------------------------------
Principal Investment Objective Portfolio Focus Credit Quality
Investments Seeks maximum Intermediate B to Aaa; maximum
and total return, maturity hedged 10% below Baa
Strategies consistent with non-U.S. fixed
preservation of income securities Dividend Frequency
capital and Declared daily and
prudent investment Average Portfolio distributed monthly
management Duration
3-7 years

The Portfolio seeks to achieve its investment objective by
investing under normal circumstances at least 85% of its assets in
Fixed Income Instruments of issuers located outside the United
States, representing at least three foreign countries, which may
be represented by futures contracts (including related options)
with respect to such securities, and options on such securities.
Such securities normally are denominated in major foreign
currencies or baskets of foreign currencies (such as the euro).
The Portfolio will normally hedge at least 75% of its exposure to
foreign currency to reduce the risk of loss due to fluctuations in
currency exchange rates.

PIMCO selects the Portfolio's foreign country and currency
compositions based on an evaluation of various factors, including,
but not limited to, relative interest rates, exchange rates,
monetary and fiscal policies, trade and current account balances.
The average portfolio duration of this Portfolio normally varies
within a three- to seven-year time frame. The Portfolio invests
primarily in investment grade debt securities, but may invest up
to 10% of its assets in high yield securities ("junk bonds") rated
B or higher by Moody's or S&P, or, if unrated, determined by PIMCO
to be of comparable quality. The Portfolio is non-diversified,
which means that it may concentrate its assets in a smaller number
of issuers than a diversified Portfolio.

. Interest Rate Risk . Foreign Investment Risk . Mortgage Risk
. Credit Risk . Currency Risk . Derivatives Risk
. Market Risk . Issuer Non- . Leveraging Risk
. Issuer Risk Diversification Risk . Management Risk
. Liquidity Risk

Please see "Summary of Principal Risks" following the Portfolio
Summaries for a description of these and other risks of investing
in the Portfolio.

11 PIMCO Variable Insurance Trust
<PAGE>

PIMCO Foreign Bond Portfolio (continued)

Annual Portfolio Operating Expenses (expenses that are deducted
from Portfolio assets)
<TABLE>
Total Annual Net Portfolio
Advisory Service Other Portfolio Operating Expense Operating
Share Class Fees Fees Expenses Expenses Reduction(2) Expenses
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Administrative 0.25% 0.15% 0.85%(1) 1.25% (0.15%) 1.10%(3)
----------------------------------------------------------------------------------------
</TABLE>

(1) "Other Expenses" reflect a 0.50% administrative fee, 0.20%
interest expense, and 0.15% representing the Portfolio's
organizational expenses as attributed to the class and pro
rata Trustees' fees.
(2) PIMCO has contractually agreed to reduce total annual
portfolio operating expenses for the Administrative Class
shares to the extent they would exceed, due to the payment of
organizational expenses and Trustees' fees, 0.90% of average
daily net assets. Under the Expense Limitation Agreement,
PIMCO may recoup these waivers and reimbursements in future
periods, not exceeding three years, provided total expenses,
including such recoupment, do not exceed the annual expense
limit.
(3) Ratio of net expenses to average net assets excluding interest
expense is 0.90% for the Administrative Class.

<TABLE>
Share Class Year 1 Year 3
--------------------------------------------------------------------------------------
<S> <C> <C>
Administrative $112 $382
--------------------------------------------------------------------------------------
</TABLE>

Prospectus 12
<PAGE>

Summary of Principal Risks

The value of your investment in a Portfolio changes with the
values of that Portfolio's investments. Many factors can affect
those values. The factors that are most likely to have a material
effect on a particular Portfolio's portfolio as a whole are called
"principal risks." The principal risks of each Portfolio are
identified in the Portfolio Summaries and are described in this
section. Each Portfolio may be subject to additional principal
risks and risks other than those described below because the types
of investments made by a Portfolio can change over time.
Securities and investment techniques mentioned in this summary and
described in greater detail under "Characteristics and Risks of
Securities and Investment Techniques" appear in bold type. That
section and "Investment Objectives and Policies" in the Statement
of Additional Information also include more information about the
Portfolio, their investments and the related risks. There is no
guarantee that a Portfolio will be able to achieve its investment
objective.

Interest As interest rates rise, the value of fixed income securities held
Rate Risk by a Portfolio are likely to decrease. Securities with longer
durations tend to be more sensitive to changes in interest rates,
usually making them more volatile than securities with shorter
durations.

Credit A Portfolio could lose money if the issuer or guarantor of a fixed
Risk income security, or the counterparty to a derivatives contract,
repurchase agreement or a loan of portfolio securities, is unable
or unwilling to make timely principal and/or interest payments, or
to otherwise honor its obligations. Securities are subject to
varying degrees of credit risk, which are often reflected in
credit ratings. Municipal bonds are subject to the risk that
litigation, legislation or other political events, local business
or economic conditions, or the bankruptcy of the issuer could have
a significant effect on an issuer's ability to make payments of
principal and/or interest.

High Portfolios that invest in high yield securities and unrated
Yield securities of similar credit quality (commonly known as "junk
Risk bonds") may be subject to greater levels of interest rate, credit
and liquidity risk than Portfolios that do not invest in such
securities. High yield securities are considered predominately
speculative with respect to the issuer's continuing ability to
make principal and interest payments. An economic downturn or
period of rising interest rates could adversely affect the market
for high yield securities and reduce a Portfolio's ability to sell
its high yield securities (liquidity risk).

Market The market price of securities owned by a Portfolio may go up or
Risk down, sometimes rapidly or unpredictably. Securities may decline
in value due to factors affecting securities markets generally or
particular industries represented in the securities markets. The
value of a security may decline due to general market conditions
which are not specifically related to a particular company, such
as real or perceived adverse economic conditions, changes in the
general outlook for corporate earnings, changes in interest or
currency rates or adverse investor sentiment generally. They may
also decline due to factors which affect a particular industry or
industries, such as labor shortages or increased production costs
and competitive conditions within an industry. Equity securities
generally have greater price volatility than fixed income
securities.

Issuer The value of a security may decline for a number of reasons which
Risk directly relate to the issuer, such as management performance,
financial leverage and reduced demand for the issuer's goods or
services.

Liquidity Liquidity risk exists when particular investments are difficult to
Risk purchase or sell. A Portfolio's investments in illiquid securities
may reduce the returns of the Portfolio because it may be unable
to sell the illiquid securities at an advantageous time or price.
Portfolios with principal investment strategies that involve
foreign securities, derivatives or securities with substantial
market and/or credit risk tend to have the greatest exposure to
liquidity risk.

13 PIMCO Variable Insurance Trust
<PAGE>

Derivatives Derivatives are financial contracts whose value depends on, or is
Risk derived from, the value of an underlying asset, reference rate or
index. The various derivative instruments that the Portfolios may
use are referenced under "Characteristics and Risks of Securities
and Investment Techniques--Derivatives" in this Prospectus and
described in more detail under "Investment Objectives and
Policies" in the Statement of Additional Information. The
Portfolios typically use derivatives as a substitute for taking a
position in the underlying asset and/or part of a strategy
designed to reduce exposure to other risks, such as interest rate
or currency risk. The Portfolios may also use derivatives for
leverage, in which case their use would involve leveraging risk. A
Portfolio's use of derivative instruments involves risks different
from, or possibly greater than, the risks associated with
investing directly in securities and other traditional
investments. Derivatives are subject to a number of risks
described elsewhere in this section, such as liquidity risk,
interest rate risk, market risk, credit risk and management risk.
They also involve the risk of mispricing or improper valuation and
the risk that changes in the value of the derivative may not
correlate perfectly with the underlying asset, rate or index. A
Portfolio investing in a derivative instrument could lose more
than the principal amount invested. Also, suitable derivative
transactions may not be available in all circumstances and there
can be no assurance that a Portfolio will engage in these
transactions to reduce exposure to other risks when that would be
beneficial.

Mortgage A Portfolio that purchases mortgage-related securities is subject
Risk to certain additional risks. Rising interest rates tend to extend
the duration of mortgage-related securities, making them more
sensitive to changes in interest rates. As a result, in a period
of rising interest rates, a Portfolio that holds mortgage-related
securities may exhibit additional volatility. This is known as
extension risk. In addition, mortgage-related securities are
subject to prepayment risk. When interest rates decline, borrowers
may pay off their mortgages sooner than expected. This can reduce
the returns of a Portfolio because the Portfolio will have to
reinvest that money at the lower prevailing interest rates.

Foreign A Portfolio that invests in foreign securities may experience more
(Non- rapid and extreme changes in value than a Portfolio that invests
U.S.) exclusively in securities of U.S. companies. The securities
Investment markets of many foreign countries are relatively small, with a
Risk limited number of companies representing a small number of
industries. Additionally, issuers of foreign securities are
usually not subject to the same degree of regulation as U.S.
issuers. Reporting, accounting and auditing standards of foreign
countries differ, in some cases significantly, from U.S.
standards. Also, nationalization, expropriation or confiscatory
taxation, currency blockage, political changes or diplomatic
developments could adversely affect a Portfolio's investments in a
foreign country. In the event of nationalization, expropriation or
other confiscation, a Portfolio could lose its entire investment
in foreign securities. Adverse conditions in a certain region can
adversely affect securities of other countries whose economies
appear to be unrelated. To the extent that a Portfolio invests a
significant portion of its assets in a concentrated geographic
area like Eastern Europe or Asia, the Portfolio will generally
have more exposure to regional economic risks associated with
foreign investments.

Currency Portfolios that invest directly in foreign currencies or in
Risk securities that trade in, and receive revenues in, foreign (non-
U.S.) currencies are subject to the risk that those currencies
will decline in value relative to the U.S. dollar, or, in the case
of hedging positions, that the U.S. dollar will decline in value
relative to the currency being hedged.

Currency rates in foreign countries may fluctuate significantly
over short periods of time for a number of reasons, including
changes in interest rates, intervention (or the failure to
intervene) by U.S. or foreign governments, central banks or
supranational entities such as the International Monetary Fund, or
by the

Prospectus 14
<PAGE>

imposition of currency controls or other political developments in
the U.S. or abroad. As a result, a Portfolio's investments in
foreign currency-denominated securities may reduce the returns of
a Portfolio.

Issuer Focusing investments in a small number of issuers, industries or
Non- foreign currencies increases risk. Portfolios that are "non-
Diversi- diversified" may invest a greater percentage of their assets in
fication the securities of a single issuer (such as bonds issued by a
Risk particular state) than Portfolios that are "diversified."
Portfolios that invest in a relatively small number of issuers are
more susceptible to risks associated with a single economic,
political or regulatory occurrence than a more diversified
portfolio might be. Some of those issuers also may present
substantial credit or other risks. Similarly, a Portfolio may be
more sensitive to adverse economic, business or political
developments if it invests a substantial portion of its assets in
the bonds of similar projects or from issuers in the same state.

Leveraging Certain transactions may give rise to a form of leverage. Such
Risk transactions may include, among others, reverse repurchase
agreements, loans of portfolios securities, and the use of when-
issued, delayed delivery or forward commitment transactions. The
use of derivatives may also create leveraging risk. To mitigate
leveraging risk, PIMCO will segregate liquid assets or otherwise
cover the transactions that may give rise to such risk. The use of
leverage may cause a Portfolio to liquidate portfolio positions
when it may not be advantageous to do so to satisfy its
obligations or to meet segregation requirements. Leverage,
including borrowing, may cause a Portfolio to be more volatile
than if the Portfolio had not been leveraged. This is because
leverage tends to exaggerate the effect of any increase or
decrease in the value of a Portfolio's portfolio securities.

Management Each Portfolio is subject to management risk because it is an
Risk actively managed investment portfolio. PIMCO and each individual
portfolio manager will apply investment techniques and risk
analyses in making investment decisions for the Portfolio, but
there can be no guarantee that these will produce the desired
results.

15 PIMCO Variable Insurance Trust
<PAGE>

Management of the Portfolios

Investment PIMCO serves as investment adviser and the administrator (serving
Adviser in its capacity as administrator, the "Administrator") for the
and Portfolios. Subject to the supervision of the Board of Trustees,
Adminis- PIMCO is responsible for managing the investment activities of the
trator Portfolios and the Portfolios' business affairs and other
administrative matters.

PIMCO's address is 840 Newport Center Drive, Suite 300, Newport
Beach, California 92660. Organized in 1971, PIMCO provides
investment management and advisory services to private accounts of
institutional and individual clients and to mutual funds. As of
December 31, 1999, PIMCO had approximately $186 billion in assets
under management.

Advisory Each Portfolio pays PIMCO fees in return for providing investment
Fees advisory services. For the fiscal year ended December 31, 1999,
the Portfolios paid monthly advisory fees to PIMCO at the
following annual rates (stated as a percentage of the average
daily net assets of each Portfolio taken separately):

<TABLE>
<CAPTION>
Portfolio Advisory Fees
-------------------------------------
<S> <C>
High Yield Bond 0.50%
Foreign Bond Portfolio 0.60%
All other Portfolios 0.40%
</TABLE>

Effective April 1, 2000, the Portfolios pay monthly advisory fees
to PIMCO at the following annual rates (stated as a percentage of
the average daily net assets of each Portfolio taken separately):

Portfolio Advisory Fees
-------------------------------------
<S> <C>
All Portfolios 0.25%
</TABLE>

Adminis- Each Portfolio pays for the administrative services it requires
trative under a fee structure which is essentially fixed. Shareholders of
Fees each Portfolio pay an administrative fee to PIMCO, computed as a
percentage of the Portfolio's assets attributable in the aggregate
to that class of shares. PIMCO, in turn, provides or procures
administrative services for shareholders and also bears the costs
of various third-party services required by the Portfolios,
including audit, custodial, portfolio accounting, legal, transfer
agency and printing costs. The result of this fee structure is an
expense level for shareholders of each Portfolio that, with
limited exceptions, is precise and predictable under ordinary
circumstances.

For the fiscal year ended December 31, 1999, the Portfolios paid
PIMCO monthly administrative fees at the following annual rates:

<TABLE>
<CAPTION>
Portfolio Administrative Fees
-------------------------------------------
<S> <C>
Foreign Bond Portfolio 0.30%
All other Portfolios 0.25%
</TABLE>

Effective April 1, 2000, the Portfolios pay PIMCO monthly
administrative fees at the following annual rates:

<TABLE>
<CAPTION>
Portfolio Administrative Fees
----------------------------------------------
<S> <C>
High Yield Bond Portfolio 0.35%
Foreign Bond Portfolio 0.50%
All other Portfolios 0.25%
</TABLE>

PIMCO may use its assets and resources, including its profits
from advisory or administrative fees paid by a Portfolio, to pay
insurance companies for services rendered to current and
prospective owners of Variable Contracts, including the provision
of support services such as providing information about the Trust
and the Portfolios, the delivery of Trust documents, and other
services. Any such payments are made by PIMCO and not by the Trust
and PIMCO does not receive any separate fees for such expenses.

Prospectus 16
<PAGE>

Individual The table below provides information about the individual
Portfolio portfolio managers responsible for management of the Trust's
Managers Portfolios, including their occupations for the past five years.

<TABLE>
<CAPTION>
Portfolio Portfolio Manager Since Recent Professional Experience
-------------------------------------------------------------------------------------------------------
<C> <C> <C> <S>
Total Return Bond William H. Gross 12/97* Managing Director, Chief Investment Officer and
a founding partner of PIMCO.

High Yield Bond Benjamin L. Trotsky 4/98* Managing Director, PIMCO. He joined PIMCO as a
Portfolio Manager in 1990.

Long-Term U.S. Government Bond James M. Keller 4/00 Executive Vice President, PIMCO. He joined PIMCO
as a Portfolio Manager in 1996, and has managed
fixed income accounts for various institutional
clients since that time.

Foreign Bond Lee R. Thomas, III 2/99* Managing Director and Senior International
Portfolio Manager, PIMCO. He joined PIMCO as a
Portfolio Manager in 1995, and has managed fixed
income accounts for various institutional
clients and funds since that time. Prior to
joining PIMCO, he was associated with Investcorp
as a member of the management committee
responsible for global securities and foreign
exchange trading.
</TABLE>
-------
* Since inception of the Portfolio.

Distributor The Trust's Distributor is PIMCO Funds Distributors LLC, a wholly
owned subsidiary of PIMCO Advisors L.P. The Distributor, located
at 2187 Atlantic Street, Stamford CT 06902, is a broker-dealer
registered with the Securities and Exchange Commission.

PIMCO Variable Insurance Trust
17
<PAGE>

Investment Options--
Administrative Class Shares

Effective April 1, 2000, the Trust offers investors Institutional
Class and Administrative Class shares of the Portfolios. On that
date, outstanding shares of the Trust were designated
Administrative Class Shares. The Trust does not charge any sales
charges (loads) or other fees in connection with purchases, sales
(redemptions) or exchanges of Administrative Class shares.

. Service Fees--Administrative Class Shares. The Trust has
adopted an Administrative Services Plan (the "Plan") for the
Administrative Class shares of each Portfolio. The Plan allows the
Portfolios to use its Administrative Class assets to reimburse
financial intermediaries that provide services relating to
Administrative Class shares. The services that will be provided
under the Plan include, among other things, teleservicing support
in connection with Portfolios; delivery of current Trust
prospectuses and other shareholder communications; recordkeeping
services; provision of support services, including providing
information about the Trust and its Portfolios and answering
questions concerning the Trust and its Portfolios, including
questions respecting investors' interests in one or more
Portfolios; provision and administration of insurance features for
the benefit of investors in connection with the Portfolios;
receiving, aggregating and forwarding purchase and redemption
orders; processing dividend payments; issuing investor reports and
transaction confirmations; providing subaccounting services;
general account administration activities; and providing such
similar services as the Trust may reasonably request to the extent
the service provider is permitted to do so under applicable
statutes, rules or regulation. The Plan also permits reimbursement
for services in connection with the administration of plans or
programs that use Administrative Class shares of the Portfolios as
their funding medium and for related expenses.

The Plan permits a Portfolio to make total reimbursements at an
annual rate of 0.15% of the Portfolio's average daily net assets
attributable to its Administrative Class shares. Because these
fees are paid out of a Portfolio's Administrative Class assets on
an ongoing basis, over time they will increase the cost of an
investment in Administrative Class shares and may cost an investor
more than other types of sales charges.

. Arrangements with Service Agents. Administrative Class shares
of the Portfolios may be offered through certain brokers and
financial intermediaries ("service agents") that have established
a shareholder servicing relationship with the Trust on behalf of
their customers. The Trust pays no compensation to such entities
other than service and/or distribution fees paid with respect to
Administrative Class shares. Service agents may impose additional
or different conditions than the Trust on purchases, redemptions
or exchanges of Portfolio shares by their customers. Service
agents may also independently establish and charge their customers
transaction fees, account fees and other amounts in connection
with purchases, sales and redemptions of Portfolio shares in
addition to any fees charged by the Trust. These additional fees
may vary over time and would increase the cost of the customer's
investment and lower investment returns. Each service agent is
responsible for transmitting to its customers a schedule of any
such fees and information regarding any additional or different
conditions regarding purchases, redemptions and exchanges.
Shareholders who are customers of service agents should consult
their service agents for information regarding these fees and
conditions.

Purchases and Redemptions

Purchasing Investors do not deal directly with the Portfolios to purchase and
Shares redeem shares. Please refer to the prospectus for the Separate
Account for information on the allocation of premiums and on
transfers of accumulated value among sub-accounts of the Separate
Account that invest in the Portfolios.

Prospectus
18
<PAGE>

As of the date of this Prospectus, shares of the Portfolios are
offered for purchase by Separate Accounts to serve as an
investment medium for Variable Contracts issued by life insurance
companies, and to qualified pension and retirement plans outside
of the separate account context.

While the Portfolios currently do not foresee any disadvantages
to Variable Contract Owners if the Portfolios serve as an
investment medium for both variable annuity contracts and variable
life insurance policies, due to differences in tax treatment or
other considerations, it is theoretically possible that the
interest of owners of annuity contracts and insurance policies for
which the Portfolios served as an investment medium might at some
time be in conflict. However, the Trust's Board of Trustees and
each insurance company with a separate account allocating assets
to the Portfolios are required to monitor events to identify any
material conflicts between variable annuity contract owners and
variable life insurance policy owners, and would have to determine
what action, if any, should be taken in the event of such a
conflict. If such a conflict occurred, an insurance company
participating in the Portfolios might be required to redeem the
investment of one or more of its separate accounts from the
Portfolios, which might force the Portfolios to sell securities at
disadvantageous prices.

The Trust and its distributor each reserves the right, in its
sole discretion, to suspend the offering of shares of the
Portfolios or to reject any purchase order, in whole or in part,
or to redeem shares, in whole or in part, when, in the judgment of
management, such suspension or rejection is in the best interests
of the Trust. The sale of shares will be suspended when trading on
the New York Stock Exchange is restricted or during an emergency
which makes it impracticable for the Portfolios to dispose of
their securities or to determine fairly the value of their net
assets, or during any other period as permitted by the SEC for the
protection of investors. In the event that a Portfolio ceases
offering its shares, any investments allocated to the Portfolio
will, subject to any necessary regulatory approvals, be invested
in another Portfolio.

Redeeming Shares may be redeemed without charge on any day that the net
Shares asset value is calculated. All redemption orders are effected at
the net asset value per share next determined after a redemption
request is received. Payment for shares redeemed normally will be
made within seven days.

Redemption's of Portfolio shares may be suspended when trading on
the New York Stock Exchange is restricted or during an emergency
which makes it impractical for the Portfolios to dispose of their
securities or to determine fairly the value of their net assets,
or during any other period as permitted by the Securities and
Exchange Commission for the protection of investors. Under these
and other unusual circumstances, the Trust may suspend redemption
or postpone payment for more than seven days, as permitted by law.
In consideration of the best interests of the remaining
shareholders, the Trust reserves the right to pay redemption
proceeds in whole or in part by a distribution in kind of
securities held by a Portfolio in lieu of cash. It is highly
unlikely that shares would ever be redeemed in kind. If shares are
redeemed in kind, however, the redeeming shareholder should expect
to incur transaction costs upon the disposition of the securities
received in the distribution.

How Portfolio Shares Are Priced

The net asset value ("NAV") of a Portfolio's Administrative Class
shares is determined by dividing the total value of a Portfolio's
investments and other assets attributable to that class, less any
liabilities, by the total number of shares outstanding of that
class.

For purposes of calculating NAV, portfolio securities and other
assets for which market quotes are available are stated at market
value. Market value is generally determined on the basis of last
reported sales prices, or if no sales are reported, based on
quotes obtained from a quotation reporting system, established
market makers, or pricing services. Certain securities or
investments for which daily market quotations are not readily
available may be valued, pursuant to guidelines established by the
Board of Trustees, with reference to other securities or indices.
Short-term investments having a maturity of 60 days or less are
generally valued at amortized cost. Exchange

19 PIMCO Variable Insurance Trust
<PAGE>

traded options, futures and options on futures are valued at the
settlement price determined by the exchange. Other securities for
which market quotes are not readily available are valued at fair
value as determined in good faith by the Board of Trustees or
persons acting at their direction.

Investments initially valued in currencies other than the U.S.
dollar are converted to U.S. dollars using exchange rates obtained
from pricing services. As a result, the NAV of a Portfolio's
shares may be affected by changes in the value of currencies in
relation to the U.S. dollar. The value of securities traded in
markets outside the United States or denominated in currencies
other than the U.S. dollar may be affected significantly on a day
that the New York Stock Exchange is closed and an investor is not
able to purchase, redeem or exchange shares.

Portfolio shares are valued at the close of regular trading
(normally 4:00 p.m., Eastern time) (the "NYSE Close") on each day
that the New York Stock Exchange is open. For purposes of
calculating the NAV, the Portfolios normally use pricing data for
domestic equity securities received shortly after the NYSE Close
and do not normally take into account trading, clearances or
settlements that take place after the NYSE Close. Domestic fixed
income and foreign securities are normally priced using data
reflecting the earlier closing of the principal markets for those
securities. Information that becomes known to the Portfolios or
its agents after the NAV has been calculated on a particular day
will not generally be used to retroactively adjust the price of a
security or the NAV determined earlier that day.

In unusual circumstances, instead of valuing securities in the
usual manner, the Portfolios may value securities at fair value or
estimate their value as determined in good faith by the Board of
Trustees, generally based upon recommendations provided by PIMCO.
Fair valuation may also be used if extraordinary events occur
after the close of the relevant market but prior to the NYSE
Close.

Tax Consequences

Each Portfolio intends to qualify as a regulated investment
company annually and to elect to be treated as a regulated
investment company for federal income tax purposes. As such, a
Portfolio generally will not pay federal income tax on the income
and gains it pays as dividends to its shareholders. In order to
avoid a 4% federal excise tax, each Portfolio intends to
distribute each year substantially all of its net income and
gains.

The Portfolios also intend to comply with diversification
requirements imposed by regulations under Section 817(h) of the
Internal Revenue Code, as amended. Compliance with these
diversification rules generally will limit the ability of a
Portfolio to invest greater than 55% of its total assets in direct
obligations of the U.S. Treasury (or any other issuer), or to
invest primarily in securities issued by a single agency or
instrumentality of the U.S. Government.

If a Portfolio fails to meet the diversification requirement
under Section 817(h), income with respect to Variable Contracts
invested in the Portfolio at any time during the calendar quarter
in which the failure occurred could become currently taxable to
the owners of the Variable Contracts and income for prior periods
with respect to such contracts also could be taxable, most likely
in the year of the failure to achieve the required
diversification. Other adverse tax consequences could also ensue.

Please refer to the prospectus for the Separate Account and
Variable Contract for information regarding the federal income tax
treatment of distributions to the Separate Account. See
"Additional Information--Additional Tax Information" in the
Portfolios' Statement of Additional Information for more
information on taxes.

Prospectus
20
<PAGE>

Characteristics and Risks of
Securities and Investment Techniques

This section provides additional information about some of the
principal investments and related risks of the Portfolios
described under the "Portfolio Summaries" above. It also describes
characteristics and risks of additional securities and investment
techniques that may be used by the Portfolios from time to time.
Most of these securities and investment techniques are
discretionary, which means that PIMCO can decide whether to use
them or not. This Prospectus does not attempt to disclose all of
the various types of securities and investment techniques that may
be used by the Portfolios. As with any mutual fund, investors in
the Portfolios rely on the professional investment judgment and
skill of PIMCO and the individual portfolio managers. Please see
"Investment Objectives and Policies" in the Statement of
Additional Information for more detailed information about the
securities and investment techniques described in this section and
about other strategies and techniques that may be used by the
Portfolios.

Securities Most of the Portfolios in this prospectus seek maximum total
Selection return. The total return sought by a Portfolio consists of both
income earned on a Portfolio's investments and capital
appreciation, if any, arising from increases in the market value
of a Portfolio's holdings. Capital appreciation of fixed income
securities generally results from decreases in market interest
rates or improving credit fundamentals for a particular market
sector or security.

In selecting securities for a Portfolio, PIMCO develops an
outlook for interest rates, foreign currency exchange rates and
the economy; analyzes credit and call risks, and uses other
security selection techniques. The proportion of a Portfolio's
assets committed to investment in securities with particular
characteristics (such as quality, sector, interest rate or
maturity) varies based on PIMCO's outlook for the U.S. and foreign
economies, the financial markets and other factors.

PIMCO attempts to identify areas of the bond market that are
undervalued relative to the rest of the market. PIMCO identifies
these areas by grouping bonds into the following sectors: money
markets, governments, corporates, mortgages, asset-backed and
international. Sophisticated proprietary software then assists in
evaluating sectors and pricing specific securities. Once
investment opportunities are identified, PIMCO will shift assets
among sectors depending upon changes in relative valuations and
credit spreads. There is no guarantee that PIMCO's security
selection techniques will produce the desired results.

U.S. U.S. Government securities are obligations of and, in certain
Government cases, guaranteed by, the U.S. Government, its agencies or
Securities government-sponsored enterprises. U.S. Government Securities are
subject to market and interest rate risk, and may be subject to
varying degrees of credit risk. U.S. Government securities may
include zero coupon securities, which do not distribute interest
on a current basis and tend to be subject to greater market risk
than interest-paying securities of similar maturities.

Muncipal Municipal bonds are generally issued by states and local
Bonds governments and their agencies, authorities and other
instumentalities. Municipal bonds are subject to interest rate,
credit and market risk. The ability of an issuer to make payments
could be affected by litigation, legislation or other political
events or the bankruptcy of the issuer. Lower rated municipal
bonds are subject to greater credit and market risk than higher
quality municipal bonds. The types of municipal bonds in which the
Portfolios may invest include municipal lease obligations. The
Portfolios may also invest in securities issued by entities whose
underlying assets are municipal bonds.

Mortgage- Each Portfolio may invest all of its assets in mortgage- and
Related asset-backed securities. Mortgage-related securities include
and Other mortgage pass-through securities, collateralized mortgage
Asset- obligations ("CMOs"), commercial mortgage-backed securities,
Backed mortgage dollar rolls, CMO residuals, stripped mortgage-backed
Securities securities ("SMBSs") and other securities that directly or
indirectly represent a participation in, or are secured by and
payable from, mortgage loans on real property.

PIMCO Variable Insurance Trust
21
<PAGE>

The value of some mortgage- or asset-backed securities may be
particularly sensitive to changes in prevailing interest rates.
Early repayment of principal on some mortgage-related securities
may expose a Portfolio to a lower rate of return upon reinvestment
of principal. When interest rates rise, the value of a mortgage-
related security generally will decline; however, when interest
rates are declining, the value of mortgage-related securities with
prepayment features may not increase as much as other fixed income
securities. The rate of prepayments on underlying mortgages will
affect the price and volatility of a mortgage-related security,
and may shorten or extend the effective maturity of the security
beyond what was anticipated at the time of purchase. If
unanticipated rates of prepayment on underlying mortgages increase
the effective maturity of a mortgage-related security, the
volatility of the security can be expected to increase. The value
of these securities may fluctuate in response to the market's
perception of the creditworthiness of the issuers. Additionally,
although mortgages and mortgage-related securities are generally
supported by some form of government or private guarantee and/or
insurance, there is no assurance that private guarantors or
insurers will meet their obligations.

One type of SMBS has one class receiving all of the interest from
the mortgage assets (the interest-only, or "IO" class), while the
other class will receive all of the principal (the principal-only,
or "PO" class). The yield to maturity on an IO class is extremely
sensitive to the rate of principal payments (including
prepayments) on the underlying mortgage assets, and a rapid rate
of principal payments may have a material adverse effect on a
Portfolio's yield to maturity from these securities. A Portfolio
may not invest more than 5% of its net assets in any combination
of IO, PO, or inverse floater securities. The Portfolios may
invest in other asset-backed securities that have been offered to
investors.

Loan Certain Portfolios may invest in fixed- and floating-rate loans,
Partici- which investments generally will be in the form of loan
pations participations and assignments of portions of such loans.
and Participations and assignments involve special types of risk,
Assignments including credit risk, interest rate risk, liquidity risk, and the
risks of being a lender. If a Portfolio purchases a participation,
it may only be able to enforce its rights through the lender, and
may assume the credit risk of the lender in addition to the
borrower.

Corporate Corporate debt securities are subject to the risk of the issuer's
Debt inability to meet principal and interest payments on the
Securities obligation and may also be subject to price volatility due to such
factors as interest rate sensitivity, market perception of the
credit-worthiness of the issuer and general market liquidity. When
interest rates rise, the value of corporate debt securities can be
expected to decline. Debt securities with longer maturities tend
to be more sensitive to interest rate movements than those with
shorter maturities.

High Securities rated lower than Baa by Moody's Investors Service, Inc.
Yield ("Moody's") or lower than BBB by Standard & Poor's Ratings
Securities Services ("S&P") are sometimes referred to as "high yield" or
"junk" bonds. Investing in high yield securities involves special
risks in addition to the risks associated with investments in
higher-rated fixed income securities. While offering a greater
potential opportunity for capital appreciation and higher yields,
high yield securities typically entail greater potential price
volatility and may be less liquid than higher-rated securities.
High yield securities may be regarded as predominately speculative
with respect to the issuer's continuing ability to meet principal
and interest payments. They may also be more susceptible to real
or perceived adverse economic and competitive industry conditions
than higher-rated securities.

. Credit Ratings and Unrated Securities. Rating agencies are
private services that provide ratings of the credit quality of
fixed income securities, including convertible securities.
Appendix A to this Offering Memorandum describes the various
ratings assigned to fixed income securities by Moody's and S&P.
Ratings assigned by a rating agency are not absolute standards of
credit quality and do not evaluate market risks. Rating agencies
may fail to make timely changes in credit ratings and an issuer's
current financial condition may be better or worse than a rating
indicates. A Portfolio will not necessarily sell a security when
its rating is reduced below its rating at the time of purchase.
PIMCO does not rely solely on credit ratings, and develops its own
analysis of issuer credit quality.

A Portfolio may purchase unrated securities (which are not rated
by a rating agency) if its portfolio manager determines that the
security is of comparable quality to a rated security that the
Portfolio may purchase. Unrated

Prospectus
22
<PAGE>

securities may be less liquid than comparable rated securities and
involve the risk that the portfolio manager may not accurately
evaluate the security's comparative credit rating. Analysis of the
creditworthiness of issuers of high yield securities may be more
complex than for issuers of higher-quality fixed income
securities. To the extent that a Portfolio invests in high yield
and/or unrated securities, the Portfolio's success in achieving
its investment objective may depend more heavily on the portfolio
manager's creditworthiness analysis than if the Portfolio invested
exclusively in higher-quality and rated securities.

Variable Variable and floating rate securities provide for a periodic
and adjustment in the interest rate paid on the obligations. Each
Floating Portfolio may invest in floating rate debt instruments
Rate ("floaters") and engage in credit spread trades. While floaters
Securities provide a certain degree of protection against rises in interest
rates, a Portfolio will participate in any declines in interest
rates as well. Each Portfolio may also invest in inverse floating
rate debt instruments ("inverse floaters"). An inverse floater may
exhibit greater price volatility than a fixed rate obligation of
similar credit quality. A Portfolio may not invest more than 5% of
its assets in any combination of inverse floater, interest only,
or principal only securities.

Inflation- Inflation-indexed bonds are fixed income securities whose
Indexed principal value is periodically adjusted according to the rate of
Bonds inflation. If the index measuring inflation falls, the principal
value of inflation-indexed bonds will be adjusted downward, and
consequently the interest payable on these securities (calculated
with respect to a smaller principal amount) will be reduced.
Repayment of the original bond principal upon maturity (as
adjusted for inflation) is guaranteed in the case of U.S. Treasury
inflation-indexed bonds. For bonds that do not provide a similar
guarantee, the adjusted principal value of the bond repaid at
maturity may be less than the original principal.

The value of inflation-indexed bonds is expected to change in
response to changes in real interest rates. Real interest rates
are tied to the relationship between nominal interest rates and
the rate of inflation. If nominal interest rates increase at a
faster rate than inflation, real interest rates may rise, leading
to a decrease in value of inflation-indexed bonds. Short-term
increases in inflation may lead to a decline in value. Any
increase in the principal amount of an inflation-indexed bond will
be considered taxable ordinary income, even though investors do
not receive their principal until maturity.

Event- Each Portfolio may invest in "event-linked bonds," which are fixed
Linked income securities for which the return of principal and payment of
Bonds interest is contingent on the non-occurrence of a specific
"trigger" event, such as a hurricane, earthquake or other physical
or weather-related phenomenon. Some event-linked bonds are
commonly referred to as "catastrophe bonds." If a trigger event
occurs, a Portfolio may lose a portion or all of its principal
invested in the bond. Event-linked bonds often provide for an
extension of maturity to process and audit loss claims where a
trigger event has, or possibly has, occurred. Event-linked bonds
may also expose the Portfolio to certain unanticipated risks
including but not limited to issuer (credit) default, adverse
regulatory or jurisdictional interpretation, and adverse tax
consequences. Event-linked bonds may also be subject to liquidity
risk.

Convertible Each Portfolio may invest in convertible securities. Convertible
and securities are generally preferred stocks and other securities,
Equity including fixed income securities and warrants, that are
Securities convertible into or exercisable for common stock at a stated price
or rate. The price of a convertible security will normally vary in
some proportion to changes in the price of the underlying common
stock because of this conversion or exercise feature. However, the
value of a convertible security may not increase or decrease as
rapidly as the underlying common stock. A convertible security
will normally also provide income and is subject to interest rate
risk. Convertible securities may be lower-rated securities subject
to greater levels of credit risk. A Portfolio may be forced to
convert a security before it would otherwise choose, which may
have an adverse effect on the Portfolio's ability to achieve its
investment objective.

While the Fixed Income Portfolios intend to invest primarily in
fixed income securities, each may invest in convertible securities
or equity securities. While some countries or companies may be
regarded as favorable investments, pure fixed income opportunities
may be unattractive or limited due to insufficient supply, or
legal or technical restrictions. In such cases, a Portfolio may
consider convertible securities or equity securities to gain
exposure to such investments.

PIMCO Variable Insurance Trust
23
<PAGE>

Equity securities generally have greater price volatility than
fixed income securities. The market price of equity securities
owned by a Portfolio may go up or down, sometimes rapidly or
unpredictably. Equity securities may decline in value due to
factors affecting equity securities markets generally or
particular industries represented in those markets. The value of
an equity security may also decline for a number of reasons which
directly relate to the issuer, such as management performance,
financial leverage and reduced demand for the issuer's goods or
services.

Investing in the securities of issuers in any foreign country
Foreign involves special risks and considerations not typically associated
(Non- with investing in U.S. companies. Shareholders should consider
U.S.) carefully the substantial risks involved for Portfolios that
Securities invest in securities issued by foreign companies and governments
of foreign countries. These risks include: differences in
accounting, auditing and financial reporting standards; generally
higher commission rates on foreign portfolio transactions; the
possibility of nationalization, expropriation or confiscatory
taxation; adverse changes in investment or exchange control
regulations; and political instability. Individual foreign
economies may differ favorably or unfavorably from the U.S.
economy in such respects as growth of gross domestic product,
rates of inflation, capital reinvestment, resources, self-
sufficiency and balance of payments position. The securities
markets, values of securities, yields and risks associated with
foreign securities markets may change independently of each other.
Also, foreign securities and dividends and interest payable on
those securities may be subject to foreign taxes, including taxes
withheld from payments on those securities. Foreign securities
often trade with less frequency and volume than domestic
securities and therefore may exhibit greater price volatility.
Investments in foreign securities may also involve higher
custodial costs than domestic investments and additional
transaction costs with respect to foreign currency conversions.
Changes in foreign exchange rates also will affect the value of
securities denominated or quoted in foreign currencies.

Certain Portfolios also may invest in sovereign debt issued by
governments, their agencies or instrumentalities, or other
government-related entities. Holders of sovereign debt may be
requested to participate in the rescheduling of such debt and to
extend further loans to governmental entities. In addition, there
is no bankruptcy proceeding by which defaulted sovereign debt may
be collected.

. Emerging Market Securities. Each Portfolio that may invest in
foreign securities, may invest up to 10% of its assets in
securities of issuers based in countries with developing (or
"emerging market") economies. Investing in emerging market
securities imposes risks different from, or greater than, risks of
investing in domestic securities or in foreign, developed
countries. These risks include: smaller market capitalization of
securities markets, which may suffer periods of relative
illiquidity; significant price volatility; restrictions on foreign
investment; possible repatriation of investment income and
capital. In addition, foreign investors may be required to
register the proceeds of sales; future economic or political
crises could lead to price controls, forced mergers, expropriation
or confiscatory taxation, seizure, nationalization, or creation of
government monopolies. The currencies of emerging market countries
may experience significant declines against the U.S. dollar, and
devaluation may occur subsequent to investments in these
currencies by a Portfolio. Inflation and rapid fluctuations in
inflation rates have had, and may continue to have, negative
effects on the economies and securities markets of certain
emerging market countries.

Additional risks of emerging markets securities may include:
greater social, economic and political uncertainty and
instability; more substantial governmental involvement in the
economy; less governmental supervision and regulation;
unavailability of currency hedging techniques; companies that are
newly organized and small; differences in auditing and financial
reporting standards, which may result in unavailability of
material information about issuers; and less developed legal
systems. In addition, emerging securities markets may have
different clearance and settlement procedures, which may be unable
to keep pace with the volume of securities transactions or
otherwise make it difficult to engage in such transactions.
Settlement problems may cause a Portfolio to miss attractive
investment opportunities, hold a portion of its assets in cash
pending investment, or be delayed in disposing of a portfolio
security. Such a delay could result in possible liability to a
purchaser of the security.

Each Portfolio (except the Long-Term U.S. Government Portfolio)
may invest in Brady Bonds, which are securities created through
the exchange of existing commercial bank loans to sovereign
entities for new obligations in connection with a debt
restructuring. Investments in Brady Bonds may be viewed as
speculative.

Prospectus
24
<PAGE>

Brady Bonds acquired by the Portfolio may be subject to
restructuring arrangements or to requests for new credit, which
may cause the Portfolio to suffer a loss of interest or principal
on any of its holdings.

Foreign A Portfolio that invests directly in foreign currencies or in
(Non- securities that trade in, or receive revenues in, foreign
U.S.) currencies will be subject to currency risk. Foreign currency
Currencies exchange rates may fluctuate significantly over short periods of
time. They generally are determined by supply and demand in the
foreign exchange markets and the relative merits of investments in
different countries, actual or perceived changes in interest rates
and other complex factors. Currency exchange rates also can be
affected unpredictably by intervention (or the failure to
intervene) by U.S. or foreign governments or central banks, or by
currency controls or political developments. For example,
uncertainty surrounds the introduction of the euro (a common
currency unit for the European Union) and the effect it may have
on the value of European currencies as well as securities
denominated in local European currencies. These and other
currencies in which the Portfolios' assets are denominated may be
devalued against the U.S. dollar, resulting in a loss to the
Portfolios.

. Foreign Currency Transactions. Portfolios that invest in
securities denominated in foreign currencies may enter into
forward foreign currency exchange contracts and invest in foreign
currency futures contracts and options on foreign currencies and
futures. A forward foreign currency exchange contract, which
involves an obligation to purchase or sell a specific currency at
a future date at a price set at the time of the contract, reduces
a Portfolio's exposure to changes in the value of the currency it
will deliver and increases its exposure
to changes in the value of the currency it will receive for the
duration of the contract. The effect on the value of a Portfolio
is similar to selling securities denominated in one currency and
purchasing securities denominated in another currency. A contract
to sell foreign currency would limit any potential gain which
might be realized if the value of the hedged currency increases. A
Portfolio may enter into these contracts to hedge against foreign
exchange risk, to increase exposure to a foreign currency or to
shift exposure to foreign currency fluctuations from one currency
to another. Suitable hedging transactions may not be available in
all circumstances and there can be no assurance that a Portfolio
will engage in such transactions at any given time or from time to
time. Also, such transactions may not be successful and may
eliminate any chance for a Portfolio to benefit from favorable
fluctuations in relevant foreign currencies. A Portfolio may use
one currency (or a basket of currencies) to hedge against adverse
changes in the value of another currency (or a basket of
currencies) when exchange rates between the two currencies are
positively correlated. The Portfolio will segregate assets
determined to be liquid by PIMCO in accordance with procedures
established by the Board of Trustees to cover its obligations
under forward foreign currency exchange contracts entered into for
non-hedging purposes.

Repurchase Each Portfolio may enter into repurchase agreements, in which the
Agreements Portfolio purchases a security from a bank or broker-dealer and
agrees to repurchase the security at the Portfolio's cost plus
interest within a specified time. If the party agreeing to
repurchase should default, the Portfolio will seek to sell the
securities which it holds. This could involve procedural costs or
delays in addition to a loss on the securities if their value
should fall below their repurchase price. Repurchase agreements
maturing in more than seven days are considered illiquid
securities.

Reverse Each Portfolio may enter into reverse repurchase agreements and
Repurchase dollar rolls, subject to the Portfolio's limitations on
Agreements, borrowings. A reverse repurchase agreement or dollar roll involves
Dollar the sale of a security by a Portfolio and its agreement to
Rolls and repurchase the instrument at a specified time and price, and may
Other be considered a form of borrowing for some purposes. A Portfolio
Borrowings will segregate assets determined to be liquid by PIMCO in
accordance with procedures established by the Board of Trustees to
cover its obligations under reverse repurchase agreements, dollar
rolls, and other borrowings. Reverse repurchase agreements, dollar
rolls and other forms of borrowings may create leveraging risk for
a Portfolio.

Each Portfolio may borrow money to the extent permitted under the
Investment Company Act of 1940 ("1940 Act"), as amended. This
means that, in general, a Portfolio may borrow money from banks
for any purpose on a secured basis in an amount up to 1/3 of the
Portfolio's total assets. A Portfolio may also borrow

PIMCO Variable Insurance Trust
25
<PAGE>

money for temporary administrative purposes on an unsecured basis
in an amount not to exceed 5% of the Portfolio's total assets.

Derivatives Each Portfolio may, but is not required to, use derivative
instruments for risk management purposes or as part of its
investment strategies. Generally, derivatives are financial
contracts whose value depends upon, or is derived from, the value
of an underlying asset, reference rate or index, and may relate to
stocks, bonds, interest rates, currencies or currency exchange
rates, commodities, and related indexes. Examples of derivative
instruments include options contracts, futures contracts, options
on futures contracts and swap agreements. Each Portfolio may
invest all of its assets in derivative instruments, subject to the
Portfolio's objective and policies. A portfolio manager may decide
not to employ any of these strategies and there is no assurance
that any derivatives strategy used by a Portfolio will succeed. A
description of these and other derivative instruments that the
Portfolios may use are described under "Investment Objectives and
Policies" in the Statement of Additional Information.

A Portfolio's use of derivative instruments involves risks
different from, or greater than, the risks associated with
investing directly in securities and other more traditional
investments. A description of various risks associated with
particular derivative instruments is included in "Investment
Objectives and Policies" in the Statement of Additional
Information. The following provides a more general discussion of
important risk factors relating to all derivative instruments that
may be used by the Portfolios.

Management Risk. Derivative products are highly specialized
instruments that require investment techniques and risk analyses
different from those associated with stocks and bonds. The use of
a derivative requires an understanding not only of the underlying
instrument but also of the derivative itself, without the benefit
of observing the performance of the derivative under all possible
market conditions.

Credit Risk. The use of a derivative instrument involves the risk
that a loss may be sustained as a result of the failure of another
party to the contract (usually referred to as a "counterparty") to
make required payments or otherwise comply with the contract's
terms.

Liquidity Risk. Liquidity risk exists when a particular
derivative instrument is difficult to purchase or sell. If a
derivative transaction is particularly large or if the relevant
market is illiquid (as is the case with many privately negotiated
derivatives), it may not be possible to initiate a transaction or
liquidate a position at an advantageous time or price.

Leverage Risk. Because many derivatives have a leverage
component, adverse changes in the value or level of the underlying
asset, reference rate or index can result in a loss substantially
greater than the amount invested in the derivative itself. Certain
derivatives have the potential for unlimited loss, regardless of
the size of the initial investment. When a Portfolio uses
derivatives for leverage, investments in that Portfolio will tend
to be more volatile, resulting in larger gains or losses in
response to market changes. To limit leverage risk, each Portfolio
will segregate assets determined to be liquid by PIMCO in
accordance with procedures established by the Board of Trustees
(or, as permitted by applicable regulation, enter into certain
offsetting positions) to cover its obligations under derivative
instruments.

Lack of Availability. Because the markets for certain derivative
instruments (including markets located in foreign countries) are
relatively new and still developing, suitable derivatives
transactions may not be available in all circumstances for risk
management or other purposes. There is no assurance that a
Portfolio will engage in derivatives transactions at any time or
from time to time. A Portfolio's ability to use derivatives may
also be limited by certain regulatory and tax considerations.

Market and Other Risks. Like most other investments, derivative
instruments are subject to the risk that the market value of the
instrument will change in a way detrimental to a Portfolio's
interest. If a portfolio manager incorrectly forecasts the values
of securities, currencies or interest rates or other economic
factors in using

Prospectus
26
<PAGE>

derivatives for a Portfolio, the Portfolio might have been in a
better position if it had not entered into the transaction at all.
While some strategies involving derivative instruments can reduce
the risk of loss, they can also reduce the opportunity for gain or
even result in losses by offsetting favorable price movements in
other Portfolio investments. A Portfolio may also have to buy or
sell a security at a disadvantageous time or price because the
Portfolio is legally required to maintain offsetting positions or
asset coverage in connection with certain derivatives
transactions.

Other risks in using derivatives include the risk of mispricing
or improper valuation of derivatives and the inability of
derivatives to correlate perfectly with underlying assets, rates
and indexes. Many derivatives, in particular privately negotiated
derivatives, are complex and often valued subjectively. Improper
valuations can result in increased cash payment requirements to
counterparties or a loss of value to a Portfolio. Also, the value
of derivatives may not correlate perfectly, or at all, with the
value of the assets, reference rates or indexes they are designed
to closely track. In addition, a Portfolio's use of derivatives
may cause the Portfolio to realize higher amounts of short-term
capital gains (generally taxed at ordinary income tax rates) than
if the Portfolio had not used such instruments.

Delayed The Portfolios may also enter into, or acquire participations in,
Funding delayed funding loans and revolving credit facilities, in which a
Loans and lender agrees to make loans up to a maximum amount upon demand by
Revolving the borrower during a specified term. These commitments may have
Credit the effect of requiring a Portfolio to increase its investment in
Facilities a company at a time when it might not otherwise decide to do so
(including at a time when the company's financial condition makes
it unlikely that such amounts will be repaid). To the extent that
a Portfolio is committed to advance additional funds, it will
segregate assets determined to be liquid by PIMCO in accordance
with procedures established by the Board of Trustees in an amount
sufficient to meet such commitments. Delayed funding loans and
revolving credit facilities are subject to credit, interest rate
and liquidity risk and the risks of being a lender.

When- Each Portfolio may purchase securities which it is eligible to
Issued, purchase on a when-issued basis, may purchase and sell such
Delayed securities for delayed delivery and may make contracts to purchase
Delivery such securities for a fixed price at a future date beyond normal
and settlement time (forward commitments). When-issued transactions,
Forward delayed delivery purchases and forward commitments involve a risk
Commitment of loss if the value of the securities declines prior to the
Trans- settlement date. This risk is in addition to the risk that the
actions Portfolio's other assets will decline in the value. Therefore,
these transactions may result in a form of leverage and increase a
Portfolio's overall investment exposure. Typically, no income
accrues on securities a Portfolio has committed to purchase prior
to the time delivery of the securities is made, although a
Portfolio may earn income on securities it has segregated to cover
these positions.

Investment Each Portfolio may invest up to 10% of its assets in securities of
in Other other investment companies, such as closed-end management
Investment investment companies, or in pooled accounts or other investment
Companies vehicles which invest in foreign markets. As a shareholder of any
investment company, a Portfolio may indirectly bear service and
other fees which are in addition to the fees the Portfolio pays
its service providers.

Subject to the restrictions and limitations of the 1940 Act, each
Portfolio may, in the future, elect to pursue its investment
objective by investing in one or more underlying investment
vehicles or companies that have substantially similar investment
objectives, policies and limitations as the Portfolio.

Short Each Portfolio may make short sales as part of its overall
Sales portfolio management strategies or to offset a potential decline
in value of a security. A short sale involves the sale of a
security that is borrowed from a broker or other institution to
complete the sale. Short sales expose a Portfolio to the risk that
it will be required to acquire, convert or exchange securities to
replace the borrowed securities (also known as "covering" the
short position) at a time when the securities sold short have
appreciated in value, thus resulting

PIMCO Variable Insurance Trust
27
<PAGE>

in a loss to the Portfolio. A Portfolio making a short sale must
segregate assets determined to be liquid by PIMCO in accordance
with procedures established by the Board of Trustees or otherwise
cover its position in a permissible manner.

Illiquid Each Portfolio may invest up to 15% of its net assets in illiquid
Securities securities. Certain illiquid securities may require pricing at
fair value as determined in good faith under the supervision of
the Board of Trustees. A portfolio manager may be subject to
significant delays in disposing of illiquid securities, and
transactions in illiquid securities may entail registration
expenses and other transaction costs that are higher than those
for transactions in liquid securities. The term "illiquid
securities" for this purpose means securities that cannot be
disposed of within seven days in the ordinary course of business
at approximately the amount at which a Portfolio has valued the
securities. Restricted securities, i.e., securities subject to
legal or contractual restrictions on resale, may be illiquid.
However, some restricted securities (such as securities issued
pursuant to Rule 144A under the Securities Act of 1933 and certain
commercial paper) may be treated as liquid, although they may be
less liquid than registered securities traded on established
secondary markets.

Loans of For the purpose of achieving income, each Portfolio may lend its
Portfolio portfolio securities to brokers, dealers, and other financial
Securities institutions provided a number of conditions are satisfied,
including that the loan is fully collateralized. Please see
"Investment Objectives and Policies" in the Statement of
Additional Information for details. When a Portfolio lends
portfolio securities, its investment performance will continue to
reflect changes in the value of the securities loaned, and the
Portfolio will also receive a fee or interest on the collateral.
Securities lending involves the risk of loss of rights in the
collateral or delay in recovery of the collateral if the borrower
fails to return the security loaned or becomes insolvent. A
Portfolio may pay lending fees to a party arranging the loan.

Portfolio The length of time a Portfolio has held a particular security is
Turnover not generally a consideration in investment decisions. A change in
the securities held by a Portfolio is known as "portfolio
turnover." Each Portfolio may engage in frequent and active
trading of portfolio securities to achieve its investment
objective, particularly during periods of volatile market
movements. High portfolio turnover (e.g., over 100%) involves
correspondingly greater expenses to a Portfolio, including
brokerage commissions or dealer mark-ups and other transaction
costs on the sale of securities and reinvestments in other
securities. Such sales may also result in realization of taxable
capital gains, including short-term capital gains (which are
generally taxed at ordinary income tax rates). The trading costs
and tax effects associated with portfolio turnover may adversely
effect the Portfolio's performance.

Temporary For temporary or defensive purposes, the Portfolios may invest
Defensive without limit in U.S. debt securities, including taxable
Positions securities and short-term money market securities, when PIMCO
deems it appropriate to do so. When a Portfolio engages in such
strategies, it may not achieve its investment objective.

Changes The investment objective of each Portfolio is fundamental and may
in not be changed without shareholder approval. Unless otherwise
Investment stated, all other investment policies of the Portfolios may be
Objectives changed by the Board of Trustees without shareholder approval.
and
Policies

Percentage Unless otherwise stated, all percentage limitations on Portfolio
Investment investments listed in this Prospectus will apply at the time of
Limitations investment. A Portfolio would not violate these limitations unless
an excess or deficiency occurs or exists immediately after and as
a result of an investment.

Other The Portfolios may invest in other types of securities and use a
Investments variety of investment techniques and strategies which are not
and described in this Prospectus. These securities and techniques may
Techniques subject the Portfolios to additional risks. Please see the
Statement of Additional Information for additional information
about the securities and investment techniques described in this
Prospectus and about additional securities and techniques that may
be used by the Portfolios.

Prospectus
28
<PAGE>

(THIS PAGE INTENTIONALLY LEFT BLANK)

PIMCO Variable Insurance Trust
29
<PAGE>

Financial Highlights

The financial highlights table is intended to help a shareholder
understand the Portfolio's financial performance for the period of
operations. Certain information reflects financial results for a
single Portfolio share. The total returns in the table represent
the rate that an investor would have earned or lost on an
investment in a particular class of shares of a Portfolio
(assuming reinvestment of all dividends and distributions). This
information has been audited by PricewaterhouseCoopers LLP, the
Portfolio's independent auditors. Their report, along with full
financial statements, appears in the Trust's Annual Report, which
is available upon request.

<TABLE>
<CAPTION>
Net Asset Net Realized Total Income Dividends Dividends in Distributions Distributions
Year or Value Net and Unrealized (Loss) from from Net Excess of Net from Net in Excess of
Period Beginning Investment Gain (Loss) on Investment Investment Investment Realized Net Realized
Ended of Period Income(a) Investments Operations Income Income Capital Gains Capital Gains
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Total Return
Administrative Class
12/31/1999 $10.09 $0.58 $(0.64)(a) $(0.06) $(0.58) $0.00 $ 0.00 $ 0.00
12/31/1998(c) 10.00 0.56 0.28 (a) 0.84 (0.56) 0.00 (0.19) 0.00
High Yield
Administrative Class
12/31/1999 $ 9.67 $0.77 $(0.49)(a) $ 0.28 $(0.77) $0.00 $ 0.00 $ 0.00
12/31/1998(d) 10.00 0.51 (0.34)(a) 0.17 (0.50) 0.00 0.00 0.00
Long-Term U.S. Government
Administrative Class
12/31/1999(e) $10.00 $0.36 $ 0.78 (a) $(0.42) $(0.36) $0.00 $ 0.00 $ 0.00
Foreign Bond
Administrative Class
12/31/1999(g) $10.00 $0.41 $(0.49)(a) $(0.08) $(0.41) $0.00 $ 0.00 $(0.09)
</TABLE>
- -------
(a) Per share amounts based on average number of shares outstanding during the
period.
(c) Commenced operations on December 31, 1997.
(d) Commenced operations on April 30, 1998.
(e) Commenced operations on April 30, 1999.
(g) Commenced operations on February 16, 1999.

Prospectus
30
<PAGE>

<TABLE>
<CAPTION>
Ratio of Net
Tax Basis Net Asset Net Assets Ratio of Investment
Return Value End Expenses to Income to Portfolio
of Total End Total of Period Average Average Turnover
Capital Distributions of Period Return (000's) Net Assets Net Assets Rate
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>

$0.00 $(0.58) $ 9.45 (0.58)% $ 3,877 0.65% (b) 5.96% 102%
0.00 (0.75) 10.09 8.61 3,259 0.65 5.55 139

$0.00 $(0.77) $ 9.18 3.01 % $151,020 0.75% 8.25% 13%
0.00 (0.50) 9.67 1.80 49,761 0.75 7.90* 13

$0.00 $(0.36) $ 9.22 (4.28)% $ 7,173 0.65%*(f) 5.55%* 294%

$0.00 $(0.50) $ 9.42 (0.78)% $ 5,215 1.10%*(h)(i) 4.83%* 285%
</TABLE>
- -------
* Annualized.
(b) If the investment manager had not reimbursed expenses, the ratio of
operating expenses to average net assets would have been 0.69% for the
period ended December 31, 1999.
(f) If the investment manager had not reimbursed expenses, the ratio of
operating expenses to average net assets would have been 0.71%* for the
period ended December 31, 1999.
(h) If the investment manager had not reimbursed expenses, the ratio of
operating expenses to average net assets would have been 1.25%* for the
period ended December 31, 1999.
(i) Ratio of net expenses to average net assets excluding interest expense is
0.90%.

PIMCO Variable Insurance Trust
31
<PAGE>

Other Information

Performance The following table provides information concerning the historical
Information total return performance of the Institutional Class shares of
of certain series of PIMCO Funds: Pacific Investment Management
Similar Series ("PIMS"). Each PIMS series has investment objectives,
Funds policies and strategies substantially similar to those of its
respective PIMCO Variable Insurance Trust ("PVIT") Portfolio and
is currently managed by the same portfolio manager. While the
investment objectives and policies of each PIMS series and its
respective PVIT Portfolio are similar, they are not identical and
the performance of the PIMS series and the PVIT Portfolio will
vary. The data is provided to illustrate the past performance of
PIMCO in managing a substantially similar investment portfolio and
does not represent the past performance of any of the PVIT
Portfolios or the future performance of any PVIT Portfolio or its
portfolio manager. Consequently, potential investors should not
consider this performance data as an indication of the future
performance of any PVIT Portfolio or of its portfolio manager.

The performance data shown below reflects the operating expenses
of the Institutional Class of each PIMS series. The operating
expenses for the Institutional Class of the PIMS Foreign Bond Fund
are lower than the operating expenses for the Institutional Class
of the corresponding PVIT portfolio. Furthermore, the operating
expenses of the Institutional Class of each PIMS series in the
table are lower than the operating expenses of each Administrative
Class of the corresponding PVIT Portfolio. As such, performance
would have been lower if the PVIT Portfolios' expenses were used.
In addition, the PIMS series, unlike the Portfolios, are not sold
to Separate Accounts to fund Variable Contracts. As a result, the
performance results presented below do not take into account
charges or deductions against a Separate Account or Variable
Contract for cost of insurance charges, premium loads,
administrative fees, maintenance fees, premium taxes, mortality
and expense risk charges, or other charges that may be incurred
under a Variable Contract for which the Portfolio serves as an
underlying investment vehicle. By contrast, Variable Contract
Owners with contract value allocated to the Portfolios will be
subject to charges and expenses relating to the Variable Contracts
and Separate Accounts.

Each PIMS series' performance data shown below is calculated in
accordance with standards prescribed by the SEC for the
calculation of average annual total return information. The
investment results of the PIMS series presented below are
unaudited and are not intended to predict or suggest results that
might be experienced by the PIMS series or the Portfolios. Share
prices and investment returns will fluctuate reflecting market
conditions, as well as changes in company-specific fundamentals of
portfolio securities. The performance data for the benchmark index
identified below does not reflect the fees or expenses of the PIMS
series or the Portfolios.

Average Annual Total Return for Similar Series of PIMS Institutional Class
and for Benchmark Indices for Periods Ended December 31, 1999

<TABLE>
<CAPTION>
Since Inception
1 Year 3 Years 5 Years Inception Date
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PIMCO Long-Term U.S. Government
Fund/1/ (7.99) 6.27 9.72 10.35 7/1/91
Lehman Long-Term Treasury/2/ (8.74) 6.03 9.08
- -----------------------------------------------------------------------------
PIMCO Foreign Bond Fund/3/ 1.56 7.00 12.04 9.76 12/3/92
J.P. Morgan Non-U.S. (Hedged)/4/ 2.48 8.54 11.14
</TABLE>
- -------
/1/ Prior to July 1997 and April 2000 the Long-Term U.S. Government Fund was
managed by different portfolio managers.
/2/ The Lehman Long-Term Treasury Index is an unmanaged index of U.S. Treasury
issues with maturities greater than 10 years. It is not possible to invest
directly in the index.
/3/ Prior to July 1995, the Foreign Bond Fund was managed by a different
portfolio manager.
/4/ The J.P. Morgon Non-U.S. (Hedged) Index is an unmanaged market index
representative of the total return performance in U.S. dollars of major
non-U.S. bond markets. It is not possible to invest directly in the index.

Prospectus
32
<PAGE>

Appendix A
Description of Securities Ratings

A Portfolio's investments may range in quality from securities
rated in the lowest category in which the Portfolio is permitted
to invest to securities rated in the highest category (as rated by
Moody's or S&P or, if unrated, determined by PIMCO to be of
comparable quality). The percentage of a Portfolio's assets
invested in securities in a particular rating category will vary.
Following is a description of Moody's and S&P's ratings applicable
to fixed income securities.

High Quality Debt Securities are those rated in one of the two
highest rating categories (the hightest category for commercial
pages) or, if unrated, deemed comparable by PIMCO.

Investment Grade Debt Securities are those rated in one of the
four highest rating categories, or if unrated deemed comparable by
PIMCO.

Below Investment Grade High Yield Securities ("Junk Bonds") are
those rated lower than Baa by Moody's or BBB by S&P and comparable
securities. They are deemed predominantly speculative with respect
to the issuer's ability to repay principal and interest.

Following is a description of Moody's and S&P's rating categories
applicable to fixed income securities.

Moody's Corporate and Municipal Bond Ratings
Investors
Service, Aaa: Bonds which are rated Aaa are judged to be of the best
Inc. quality. They carry the smallest degree of investment risk and are
generally referred to as "gilt edge." Interest payments are
protected by a large or by an exceptionally stable margin and
principal is secure. While the various protective elements are
likely to change, such changes as can be visualized are most
unlikely to impair the fundamentally strong position of such
issues.

Aa: Bonds which are rated Aa are judged to be of high quality by
all standards. Together with the Aaa group they comprise what are
generally known as high-grade bonds. They are rated lower than the
best bonds because margins of protection may not be as large as in
Aaa securities or fluctuation of protective elements may be of
greater amplitude or there may be other elements present that make
the long-term risks appear somewhat larger than with Aaa
securities.

A: Bonds which are rated A possess many favorable investment
attributes and are to be considered as upper-medium-grade
obligations. Factors giving security to principal and interest are
considered adequate but elements may be present that suggest a
susceptibility to impairment sometime in the future.

Baa: Bonds which are rated Baa are considered as medium-grade
obligations (i.e., they are neither highly protected nor poorly
secured). Interest payments and principal security appear adequate
for the present but certain protective elements may be lacking or
may be characteristically unreliable over any great length of
time. Such bonds lack outstanding investment characteristics and
in fact have speculative characteristics as well.

Ba: Bonds which are rated Ba are judged to have speculative
elements; their future cannot be considered as well-assured. Often
the protection of interest and principal payments may be very
moderate and thereby not well safeguarded during both good and bad
times over the future. Uncertainty of position characterizes bonds
in this class.

B: Bonds which are rated B generally lack characteristics of a
desirable investment. Assurance of interest and principal payments
or of maintenance of other terms of the contract over any long
period of time may be small.

PIMCO Variable Insurance Trust
A-1
<PAGE>

Caa: Bonds which are rated Caa are of poor standing. Such issues
may be in default or there may be present elements of danger with
respect to principal or interest.

Ca: Bonds which are rated Ca represent obligations which are
speculative in a high degree. Such issues are often in default or
have other marked shortcomings.

C: Bonds which are rated C are the lowest rated class of bonds
and issues so rated can be regarded as having extremely poor
prospects of ever attaining any real investment standing.

Moody's applies numerical modifiers, 1, 2, and 3 in each generic
rating classified from Aa through B in its corporate bond rating
system. The modifier 1 indicates that the security ranks in the
higher end of its generic rating category; the modifier 2
indicates a mid-range ranking; and the modifier 3 indicates that
the issue ranks in the lower end of its generic rating category.

Corporate Moody's short-term debt ratings are opinions of the ability of
Short- issuers to repay punctually senior debt obligations which have an
Term Debt original maturity not exceeding one year. Obligations relying upon
Ratings support mechanisms such as letters of credit and bonds of
indemnity are excluded unless explicitly rated.

Moody's employs the following three designations, all judged to
be investment grade, to indicate the relative repayment ability of
rated issuers:

PRIME-1: Issuers rated Prime-1 (or supporting institutions) have
a superior ability for repayment of senior short-term debt
obligations. Prime-1 repayment ability will often be evidenced by
many of the following characteristics: leading market positions in
well-established industries; high rates of return on funds
employed; conservative capitalization structure with moderate
reliance on debt and ample asset protection; broad margins in
earnings coverage of fixed financial charges and high internal
cash generation; and well-established access to a range of
financial markets and assured sources of alternate liquidity.

PRIME-2: Issuers rated Prime-2 (or supporting institutions) have
a strong ability for repayment of senior short-term debt
obligations. This will normally be evidenced by many of the
characteristics cited above but to a lesser degree. Earnings
trends and coverage ratios, while sound, may be more subject to
variation. Capitalization characteristics, while still
appropriate, may be more affected by external conditions. Ample
alternate liquidity is maintained.

PRIME-3: Issuers rated Prime-3 (or supporting institutions) have
an acceptable ability for repayment of senior short-term
obligations. The effect of industry characteristics and market
compositions may be more pronounced. Variability in earnings and
profitability may result in changes in the level of debt
protection measurements and may require relatively high financial
leverage. Adequate alternate liquidity is maintained.

NOT PRIME: Issuers rated Not Prime do not fall within any of the
Prime rating categories.

Standard Corporate and Municipal Bond Ratings Investment Grade
& Poor's
Ratings AAA: Debt rated AAA has the highest rating assigned by Standard &
Services Poor's. Capacity to pay interest and repay principal is extremely
strong.

AA: Debt rated AA has a very strong capacity to pay interest and
repay principal and differs from the highest rated issues only in
small degree.

A: Debt rated A has a strong capacity to pay interest and repay
principal although it is somewhat more susceptible to the adverse
effects of changes in circumstances and economic conditions than
debt in higher rated categories.

Prospectus
A-2
<PAGE>

BBB: Debt rated BBB is regarded as having an adequate capacity to
pay interest and repay principal. Whereas it normally exhibits
adequate protection parameters, adverse economic conditions, or
changing circumstances are more likely to lead to a weakened
capacity to pay interest and repay principal for debt in this
category than in higher-rated categories.

Speculative Grade

Debt rated BB, B, CCC, CC, and C is regarded as having
predominantly speculative characteristics with respect to capacity
to pay interest and repay principal. BB indicates the least degree
of speculation and C the highest. While such debt will likely have
some quality and protective characteristics, these are outweighed
by large uncertainties or major exposures to adverse conditions.

BB: Debt rated BB has less near-term vulnerability to default
than other speculative issues. However, it faces major ongoing
uncertainties or exposure to adverse business, financial, or
economic conditions which could lead to inadequate capacity to
meet timely interest and principal payments. The BB rating
category also is used for debt subordinated to senior debt that is
assigned an actual or implied BBB- rating.

B: Debt rated B has a greater vulnerability to default but
currently has the capacity to meet interest payments and principal
repayments. Adverse business, financial, or economic conditions
will likely impair capacity or willingness to pay interest and
repay principal. The B rating category also is used for debt
subordinated to senior debt that is assigned an actual or implied
BB or BB- rating.

CCC: Debt rated CCC has a currently identifiable vulnerability to
default and is dependent upon favorable business, financial, and
economic conditions to meet timely payment of interest and
repayment of principal. In the event of adverse business,
financial or economic conditions, it is not likely to have the
capacity to pay interest and repay principal. The CCC rating
category also is used for debt subordinated to senior debt that is
assigned an actual or implied B or B- rating.

CC: The rating CC is typically applied to debt subordinated to
senior debt that is assigned an actual or implied CCC rating.

C: The rating C is typically applied to debt subordinated to
senior debt that is assigned an actual or implied CCC-debt rating.
The C rating may be used to cover a situation where a bankruptcy
petition has been filed, but debt service payments are continued.

CI: The rating CI is reserved for income bonds on which no
interest is being paid.

D: Debt rated D is in payment default. The D rating category is
used when interest payments or principal payments are not made on
the date due even if the applicable grace period has not expired,
unless S&P believes that such payments will be made during such
grace period. The D rating will also be used upon the filing of a
bankruptcy petition if debt service payments are jeopardized.

Plus (+) or Minus (-): The ratings from AA to CCC may be modified
by the addition of a plus or minus sign to show relative standing
within the major rating categories.

Provisional ratings: The letter "p" indicates that the rating is
provisional. A provisional rating assumes the successful
completion of the project being financed by the debt being rated
and indicates that payment of debt service requirements is largely
or entirely dependent upon the successful and timely completion of
the project. This rating, however, while addressing credit quality
after completion of the project, makes no comment on the
likelihood of, or the risk of default upon failure of, such
completion. The investor should exercise his own judgment with
respect to such likelihood and risk.

r: The "r" is attached to highlight derivative, hybrid, and
certain other obligations that S&P believes may experience high
volatility or high variability in expected returns due to non-
credit risks. Examples of such

PIMCO Variable Insurance Trust
A-3
<PAGE>

obligations are: securities whose principal or interest return is
indexed to equities, commodities, or currencies; certain swaps and
options; and interest only and principal only mortgage securities.

The absence of an "r" symbol should not be taken as an indication
that an obligation will exhibit no volatility or variability in
total return.

N.R.: Not rated.

Debt obligations of issuers outside the United States and its
territories are rated on the same basis as domestic corporate and
municipal issues. The ratings measure the creditworthiness of the
obligor but do not take into account currency exchange and related
uncertainties.

Commercial A Standard & Poor's commercial paper rating is a current
Paper assessment of the likelihood of timely payment of debt having an
Rating original maturity of no more than 365 days. Ratings are graded
Definitions into several categories, ranging from A for the highest quality
obligations to D for the lowest. These categories are as follows:

A-1: This highest category indicates that the degree of safety
regarding timely payment is strong. Those issues determined to
possess extremely strong safety characteristics are denoted with a
plus sign (+) designation.

A-2: Capacity for timely payment on issues with this designation
is satisfactory. However, the relative degree of safety is not as
high as for issues designated A-1.

A-3: Issues carrying this designation have adequate capacity for
timely payment. They are, however, more vulnerable to the adverse
effects of changes in circumstances than obligations carrying the
higher designations.

B: Issues rated B are regarded as having only speculative
capacity for timely payment.

C: This rating is assigned to short-term debt obligations with a
doubtful capacity for payment.

D: Debt rated D is in payment default. The D rating category is
used when interest payments or principal payments are not made on
the date due, even if the applicable grace period has not expired,
unless S&P believes that such payments will be made during such
grace period.

A commercial paper rating is not a recommendation to purchase,
sell or hold a security inasmuch as it does not comment as to
market price or suitability for a particular investor. The ratings
are based on current information furnished to Standard & Poor's by
the issuer or obtained from other sources it considers reliable.
Standard & Poor's does not perform an audit in connection with any
rating and may, on occasion, rely on unaudited financial
information. The ratings may be changed, suspended, or withdrawn
as a result of changes in or unavailability of such information.

Prospectus
A-4
<PAGE>

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PIMCO INVESTMENT ADVISER AND ADMINISTRATOR
Variable PIMCO, 840 Newport Center Drive, Suite 300, Newport Beach, CA
Insurance 92660
Trust

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CUSTODIAN
State Street Bank & Trust Co., 801 Pennsylvania, Kansas City, MO
64105

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TRANSFER AGENT
National Financial Data Services, 330 W. 9th Street, 4th Floor,
Kansas City, MO 64105

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INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP, 1055 Broadway, Kansas City, MO 64105

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LEGAL COUNSEL
Dechert Price & Rhoads, 1775 Eye Street N.W., Washington, D.C.
20006

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<PAGE>

The Trust's Statement of Additional Information ("SAI") and annual and
semi-annual reports to shareholders include additional information about the
Portfolios. The SAI and the financial statements included in the Portfolios'
most recent annual report to shareholders are incorporated by reference into
this Prospectus, which means they are part of this Prospectus for legal
purposes. The Portfolios' annual report discusses the market conditions and
investment strategies that significantly affected each Portfolio's performance
during its last fiscal year.

You may get free copies of any of these materials, request other information
about a Portfolio, or make shareholder inquiries by calling the Trust at
1-800-987-4626 or by writing to:

PIMCO Variable Insurance Trust
840 Newport Center Drive
Suite 300
Newport Beach, CA 92660

You may review and copy information about the Trust, including its SAI, at the
Securities and Exchange Commission's public reference room in Washington, D.C.
You may call the Commission at 1-800-SEC-0330 for information about the
operation of the public reference room. You may also access reports and other
information about the trust on the Commission's Web site at www.sec.gov. You may
get copies of this information, with payment of a duplication fee, by writing
the Public Reference Section of the Commission, Washington, D.C. 20549-0102. You
may need to refer to the Trust's file number under the Investment Company Act,
which is 811-8399.

[LOGO OF PIMCO FUNDS]

PIMCO Funds

840 Newport Center Drive
Suite 300
Newport Beach, CA 92660