<PAGE>
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PIMCO Advisors Funds
Semi-Annual Report
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March 31, 1996
[ART APPEARS HERE]
STOCK FUNDS
Equity Income Fund
Value Fund
Growth Fund
Target Fund
Discovery Fund
Opportunity Fund
Innovation Fund
International Fund The volatility of
Precious Metals Fund the market in '96
has left some
BOND FUNDS investors wondering
about the road
Global Income Fund ahead. See page 4
High Income Fund for information on
Total Return Income Fund maintaining your
Tax Exempt Fund investment plan.
U.S. Government Fund
Short-Intermediate Fund
Money Market Fund
Inside this report:
PAGE 2 A Letter From PIMCO Advisors Funds' President
Where we've been and what's ahead
PAGE 4 Today's Investor
Surviving market volatility
PAGE 6 Fund Spotlight
PIMCO Advisors Growth Fund
PAGE 7 In the News
Stars galore--new Morningstar
ratings are in
PAGE 8 Investor Services Corner
PAGE 9 Overview: A Comprehensive Fund Family
PAGE 10 PIMCO Advisors Funds Financial Information
P I M C O
<PAGE>
President's Letter
Dear Fellow Shareholder
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We are pleased to present the first edition of our expanded PIMCO Advisors Funds
Shareholder Report. In addition to providing a complete review of our funds, we
offer:
. helpful tips concerning your stock and bond investments
. insights from our institutional investment managers
. features on various PIMCO Advisors Funds
. details on new shareholder services.
We've also included expanded coverage on the performance of the financial
markets, and where we believe they could be headed.
WHERE WE'VE BEEN
To recap 1995, the stock market, as measured by the Standard & Poor's 500 Index,
posted a 37.4% return--its best performance in nearly 40 years. The bond market,
as measured by the Lehman Aggregate Bond Index, rose 18.5%--its strongest return
in a decade. A number of factors were responsible for these dramatic gains,
including accelerating corporate profits, falling interest rates and low
inflation.
After such spectacular gains from both stocks and bonds in 1995, the
financial markets have taken us on a bumpy ride thus far in 1996. For a complete
analysis, please refer to the discussion on the following page.
LOOKING AHEAD
While recent government statistics point to renewed economic strength, we
believe more modest growth could be in store. In addition, we feel inflation
will remain under control, hovering in the 3% range. Should this occur, we would
expect interest rates to fall later this year. This would benefit the bond
market, and could lead to a continuation of favorable stock market returns.
In the short term, we are likely to continue experiencing volatility in both
the stock and bond markets. While these gyrations can be unsettling, they are by
no means uncommon in the financial markets. For an explanation of the factors
that trigger these market fluctuations, and information on how to maintain your
long-term investment plan, turn to page 4.
Again, we hope you enjoy this first expanded Shareholder Report. If you have
comments or suggestions for future editions please call us at 1-800-426-0107.
Sincerely,
/s/ Robert A. Prindiville
Robert A. Prindiville
President
April 26, 1996
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2/PIMCO Advisors Funds
<PAGE>
2/PIMCO Advisors Funds
Stocks Bounce Higher
Stocks continued their ascent during the first quarter of 1996
[GRAPHIC APPEARS HERE] GRAPHIC DEPICTS THE RISE OF THE S&P 500 INDEX FROM 3/95
TO 3/96.
Source: Standard & Poor's 500 Index.
Thus far in 1996, the stock market's performance has largely confounded the
financial experts. As the year began, few felt the five year bull market could
be sustained. Yet during the first quarter of the year stocks rose 5.4%.
The market's ascent was especially surprising given rising interest rates,
the mixed outlook for corporate profits, and lack of a federal budget accord.
Despite these factors, the supply of, and demand for, stocks seemed to drive
robust returns. The supply of stocks fell as many corporations chose to buy back
their issues, while a large number of mergers and acquisitions further reduced
the supply. At the same time, the demand for stocks increased, as evidenced by
the record amount of money that was invested in stock mutual funds.
The market's upward trend was anything but a smooth ride. As you can see
from the chart at left, on numerous occasions the market experienced sharp
fluctuations during the quarter. This was most evident on March 8th, when the
government announced that 705,000 new jobs were created in February. This
unexpectedly high figure caused investors to sell, as they believed in the short
term it could lead to a rise in interest rates and an increase in inflation.
Turning to the international markets, we also saw positive returns. This was
particularly true in emerging markets such as Turkey and Poland. The Japanese
stock market also posted gains, as the country appears to be rebounding from a
lengthy recession. However, many Western European markets did not perform as
well, as they are experiencing very slow, if any, economic growth.
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Rising Interest Rates
Hurt Bonds
Interest rates reversed course during the first
quarter of the year
[GRAPHIC APPEARS HERE] GRAPHIC DEPICTS THE CHANGE IN YIELD OF THE 30-YEAR
TREASURY BOND FROM 3/95 TO 3/96.
Source: 30-year bond yield.
Just as the experts had not anticipated the stock market's strength, many were
surprised by the bond market's recent weakness. As the year began, inflation was
low and the economy appeared weak. This is typically a good environment for
bonds, as it often leads to a downward trend in interest rates. When interest
rates fall, the prices of bonds rise.
However, during the first quarter, interest rates rose sharply on fears
that the economy was picking up significantly from previous expectations.
Economic good news is generally negative for the bond market, as it can lead to
higher inflation. After a full two percentage point drop in interest rates
during 1995, rates jumped nearly 3/4 of a percentage point during the first
quarter of 1996.
Interest rates climbed based on signs of economic growth, including better
than expected employment figures, strong auto and retail sales, and positive
commentary on the economy's future by Federal Reserve Chairman Greenspan.
While the bond market in general fell, some areas performed better than
others. Many foreign bonds outperformed their U.S. counterparts, most notably in
Italy, Spain and Sweden. And lower-rated high yield bonds outperformed other
bond sectors, as the market would expect their issuers to benefit most from
renewed economic growth.
Semi-Annual Report/3
<PAGE>
Surviving Market Volatility
The financial markets have taken investors on a wild ride in 1996. One day
stocks fall dramatically, only to surge ahead the following day. And the bond
market has joined in, as uncertainty over economic growth and inflation in the
U.S. has caused interest rates to rise dramatically.
Today's markets are especially unnerving, given the fact that the past few years
have been uncharacteristically calm. This was especially true in 1995, as stocks
and bonds rose sharply with unusually little volatility. But considering what is
driving these swings, it appears that the ride has just begun.
HOW BAD IS IT?
How does one measure volatility? In the stock market, one way is to look at the
number of times the Dow Jones Industrial Average "circuit breaker" is triggered.
When the Dow rises or falls 50 points from the previous day's close certain
computer-aided trades are limited in hopes of stemming further volatility. As
you can see from the chart below, during the first quarter of 1996 these trading
curbs were triggered more than in any other full year since the circuit breaker
was introduced in 1990.
Market Volatility Has Returned
After years of relative calm, the market has triggered its circuit breaker 35
times thus far in 1996
[GRAPHIC APPEARS HERE] GRAPHIC DEPICTS THE FREQUENCY OF OCCURRENCES OF CIRCUIT
BREAKERS FROM 1990 TO 1996.
Source: The New York Times, as of March 31, 1996. The 50-point circuit breaker
began on 8/1/90, therefore it was only in place for five months in 1990.
[ART APPEARS HERE]
However, simply looking at the number of points the Dow rises or falls can be
deceiving. When the 50-point rule was instituted it took a 1.7% change in the
Dow to trigger the circuit breaker. At today's level, a 50 point swing equates
to about a 0.70% movement in the Dow. Perhaps a better way to judge volatility
is by comparing the average daily percentage change that occurs during different
time periods. At the current level, we're experiencing an average of two-thirds
of a percentage point change each day, which is historically quite normal.
According to a February 29, 1996 New York Times article, this is almost exactly
the same as the average level from 1981 through 1986, but dramatically higher
than in recent years.
WHAT CAUSES VOLATILITY?
Any number of events can cause market volatility. And it's not always clear how
the financial markets will react to short-term events. For example, in early
March the government announced that 705,000 new jobs had been created during the
previous month. This good news--jobs created during a period of slow economic
growth--was promptly greeted by a 171 point drop in the Dow and a 3 1/2% drop in
the average price of bonds.
Overall, today's market volatility has been largely attributed to political
uncertainties (the government shutdown), economic concerns (an increase in
growth possibly leading to higher inflation) and the prospect of lower corporate
profits. Based on these factors, it appears that market volatility will be with
us for some time to come.
4 WAYS TO SURVIVE MARKET FLUCTUATIONS
What steps can you take to keep your sanity and remain on track with your
financial plan during periods of market volatility?
1. Maintain A Long-Term View
One of the biggest dangers to a financial plan is focusing on short-term market
movements. Short-term volatility should be irrelevant to people with a 5- to
10-year investment time frame. Why? As the following graph shows, historically,
the longer you invest, the more likely you'll achieve positive results.
4/PIMCO Advisors Funds
<PAGE>
The Longer You Invest, The Lower Your Risk
Range of average annual returns over increasing holding periods
[GRAPHIC APPEARS HERE] GRAPHIC DEPICTS THE DECLINING VOLATILITY OF RETURNS AS
THE HOLDING PERIOD OF THE INVESTMENT IN COMMON STOCKS,
LONG-TERM CORPORATE BONDS AND TREASURY BILLS INCREASES
FROM ONE TO FIVE AND 20 YEAR PERIODS.
This chart doesn't represent the performance of any PIMCO Advisors Fund.
Past performance is not indicative of future results. Figures are based on
Ibbotson Associates' data. Common stocks reflected by the S&P 500 Index,
Corporate Bonds reflected by 20-year corporate bonds as measured by the Salomon
Brothers High-Grade Corporate Bond Index. It is not possible to invest in an
unmanaged index.
2. Properly Diversify
Various investments can perform differently under similar circumstances. For
example, certain conditions may cause stocks in general to go up while bonds go
down. You can temper your overall volatility by diversifying your portfolio
among a variety of investments. The table below shows how you could have
lessened the impact of volatility by diversifying your portfolio through an
investment in both stocks and bonds.
Diversified Portfolios Lessen Volatility Impact
Results of portfolio averages over the last 50 years--worst 1-year loss, best
1-year gain, and average return
<TABLE>
<CAPTION>
Worst Best Compound
Portfolio 1-Year Loss 1-Year Gain Annual Return
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<S> <C> <C> <C>
100% Stocks -26.5% 52.6% 11.9%
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75% Stocks/25% Bonds -19.4% 40.1% 10.5%
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50% Stocks/50% Bonds -11.8% 34.6% 8.9%
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25% Stocks/75% Bonds -5.8% 35.6% 7.2%
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100% Bonds -9.2% 40.4% 5.4%
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</TABLE>
This chart doesn't represent the performance of any PIMCO Advisors Fund.
Past performance is not indicative of future results. Figures are based on
Ibbotson Associates' data. Common stocks reflected by the S&P 500 Index and
bonds reflected by a bond portfolio constructed by Ibbotson.
3. Avoid Investment Paralysis
When the market is falling it's tempting to stop adding to your investments. But
historically, many stock market gains happened in quick, short bursts. As a
result, you can be left on the sidelines when an upturn takes place.
If you're hesitant to invest when the market appears weak, consider this
hypothetical example. Over the last ten-year period ended December 31, 1995, if
you had invested on the day the market peaked each year (the worst possible
time), you still would have achieved a 13.7% annualized return. This compares to
a 16.0% return if you had invested on the day the market hit bottom (the best
possible time). By sitting on the sidelines and investing in government insured
6-month CDs, your return would have been only 5.4%. The point is--historically,
even investing in stocks at the worst time has been better than not investing at
all.
When You Invest Isn't As Important As Investing
Hypothetical annual investment of $10,000 for ten years in the stock market on
the best and worst day and in 6-month CDs
[GRAPHIC APPEARS HERE] GRAPHIC DEPICTS THAT DURING THE PERIOD 1986 THROUGH 1995
THAT INVESTING ON THE BEST DAY OR WORST DAY IN EACH CASE
RESULTED IN THE INVESTMENT OUTPERFORMING 6 MONTH CD
RETURNS.
Based on the return of the Standard & Poor's 500 Index--an unmanaged index of
common stocks, assuming reinvestment of all distributions during the market's
high and low for the 10-year period ended 12/31/95. Past performance is not an
indication of future results and these returns do not reflect an actual
investment. It's important to note that unlike an investment in the stock
market, CDs are guaranteed as to repayment of principal and interest. Stock
market returns will fluctuate up or down depending on market conditions and an
investment may be worth more or less than original cost.
4. Schedule A Check-Up
If a 100 point stock market drop or sudden jump in interest rates makes you
nervous, schedule a portfolio check-up with your financial advisor. He or she
can review your current portfolio, investment goals, risk tolerance and time
frame to see if adjustments are needed. Understanding your investment portfolio
and feeling comfortable with market fluctuations can go a long way to helping
you achieve your financial goals.
Semi-Annual Report/5
<PAGE>
Fund Spotlight: PIMCO Advisors Growth Fund
In 1984, PIMCO Advisors launched its Growth Fund. The Fund seeks long-term
growth of capital by investing primarily in stocks of larger, well-established
companies. While past performance is not indicative of future results, the Fund
has achieved impressive results in a variety of market conditions.
<TABLE>
<CAPTION>
Average Annual Total Returns*
For periods ended March 31, 1996
1 Year 5 Years 10 Years Since Inception
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<S> <C> <C> <C> <C>
Growth Fund C 27.2% 13.0% 13.9% 16.3% (2/24/84)
</TABLE>
To learn more about the Growth Fund we recently spoke with portfolio managers
Irwin Smith and Dan Pickett of PIMCO Advisors' Columbus Circle Investors.
Q: WHAT TYPE OF INVESTORS DO YOU FEEL THE FUND IS APPROPRIATE FOR?
IS: We regard the Growth Fund as a solid "core" stock fund for long-term
investors. The Fund primarily invests in stocks of large companies with
household names. Some examples as of March 31, 1996 are Microsoft, MCI and
Johnson & Johnson.
Q: WHAT INVESTMENT STYLE DO YOU USE TO MANAGE THE FUND?
DP: We use a strategy based on the theory of "Positive Momentum & Positive
Surprise." It suggests that a company's stock price will rise when its
performance is better than expected. Conversely, a company falling short of
expectations will experience a drop in its stock price. Therefore, we seek to
invest in growing companies that are surprising the market with business results
that are even better than anticipated.
Q: HOW LONG HAS YOUR INVESTMENT STRATEGY BEEN USED?
DP: It has been in place since Columbus Circle was formed over 25 years ago. And
it is the same approach used for the PIMCO Advisors Equity Income, Target,
Opportunity and Innovation Funds.
[PHOTO APPEARS HERE]
Irwin Smith, Chairman of PIMCO
Advisors' Columbus Circle Investors
Q: WHAT SECTORS ARE YOU CURRENTLY FOCUSING ON?
IS: Technology continues to be the number one area, as it represented 29% of the
portfolio at the end of the first quarter. We're focusing on secular growth
companies that could perform well regardless of how the economy moves.
Healthcare is the second largest sector, with a 17% weighting. We are currently
emphasizing drug companies, HMOs, medical technology and hospital management
firms.
Q: WHY ARE YOU POSITIVE ON THE HEALTHCARE SECTOR?
IS: With the aging population and rising cost of caring for the elderly, we feel
that Health Maintenance Organizations (HMOs) and hospital management firms that
control costs will continue to be strong performers. The Food and Drug
Administration has also sped up the approval process on new products, which has
helped drug companies such as Fund holdings Merck and Amgen.
[PHOTO APPEARS HERE]
Dan Pickett,
Managing Director of
Columbus Circle Investors.
Q: ARE THERE ANY SPECIFIC THEMES THE FUND IS STRESSING?
DP: Companies involved in cost cutting and restructuring have always been an
area of focus. This theme has recently taken on increased importance. Companies
with healthy balance sheets and strong cash flows could have a competitive edge
in a slow moving economy. As of March 31, 1996 Fund holdings in this area
included Black & Decker, Federated Department Stores and CIGNA.
6/PIMCO Advisors Funds
<PAGE>
Q: WHEN DOES THE FUND SELL A STOCK?
IS: We generally eliminate or pare a holding when a company stops demonstrating
positive surprises relative to expectations in the marketplace. Negative
results, again relative to projections, usually lead to quick elimination from
the portfolio.
Q: HOW DO YOU FEEL THE FUND DIFFERS FROM OTHER LARGE CAPITALIZATION STOCK FUNDS?
DP: One, we believe our long-term track record and consistent management team
sets us apart. Two, we take steps to try and protect the Fund's portfolio during
periods of market fluctuations. And three, our investment approach is closely
tied to daily events that can affect the price of stocks, whether such events
are related to political, economic or industry circumstances. This helps us keep
on top of ever-changing market conditions.
To learn more about
the PIMCO Advisors
Growth Fund turn
to page 17 of this report
* Results listed for Class C shares, which include the effect of paying the 1%
contingent deferred sales charge which may apply to shares redeemed during
the first year of ownership. Since inception (5/23/95), Class B shares
returned 14.9% for the period ended 3/31/96. This return includes the effect
of paying the 5% contingent deferred sales charge, which declines from 5% in
the first year to 0% at the beginning of the seventh year. For the 1- and
5-year periods and since inception (10/26/90), the average annual returns of
the Fund's Class A shares were 22.0%, 12.5% and 15.8%, respectively for the
period ended 3/31/96. This includes the effect of paying the maximum 5.5%
initial sales charge. All results include changes in share price and
reinvestment of all dividends and capital gains distributions.
Investment return will fluctuate and the value of an investor's shares will
fluctuate and may be worth more or less than original cost when redeemed.
Average annual return for more than one year assumes a steady compound rate
of return. The Growth Fund can invest up to 15% of its portfolio in foreign
securities, which can entail special risks. The views of Mr. Pickett and Mr.
Smith are not indicative of any past or future performance of the Growth
Fund, and portfolio holdings are subject to change.
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PIMCO ADVISORS FUNDS
In the News
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The PIMCO Advisors Funds and its institutional portfolio managers are regularly
featured in the press. Here is some recent coverage.
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Stars galore! The latest Morningstar ratings have been released and several
PIMCO Advisors Funds received high marks:*
***** Target Fund
***** Opportunity Fund (currently closed to new investors)
**** Equity Income Fund
**** Growth Fund
**** Short-Intermediate Fund
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With the turbulence in the bond market, Bill Gross, of PIMCO Advisors' Pacific
Investment Management Company, has been actively sought after by the press. His
views on the bond market appeared in Business Week, U.S. News & World Report,
Barron's, The Wall Street Journal and on CNBC during the first quarter. Mr.
Gross believes the economy is still in a slow growth mode and inflation is under
control. This would be a positive environment for the bond market going forward.
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Lee Thomas, the portfolio manager of the PIMCO Advisors Global Income Fund was
featured in the March issue of Institutional Investor. Mr. Thomas explained his
strategy for investing in foreign bonds, and the secrets behind his track
record.
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* Morningstar ratings reflect historical risk-adjusted performance as of
4/30/96 and are subject to monthly changes. Ratings are not a guarantee of
future results. The ratings are calculated from a fund's average annual total
return with appropriate sales charge adjustment and a risk factor that
reflects fund performance relative to three month Treasury bill returns.
Overall rating is a weighted average of a fund's 3-, 5- and 10-year ratings
(when applicable). For the 3-, 5- and 10-year periods ended 4/30/96 there
were 1,505, 978 and 520 equity funds, and 844, 448 and 165 fixed income funds
ranked, respectively. Target Fund C and Short-Intermediate Fund C's 3-year
rating as of 4/30/96 was 5- and 4-stars, respectively. The Equity Income Fund
C's 3- and 5-year ratings as of 4/30/96 were 4- and 4-stars, respectively.
The 3-, 5- and 10-year ratings of the Growth Fund C and Opportunity Fund C
were 3-, 3-, and 4-stars, and 4-, 5- and 5-stars, respectively. 5-, 4- and
3-star ratings are limited to roughly 10%, 25% and 35%, of the funds ranked,
respectively.
The PIMCO Advisors stock funds listed above can invest up to 15% of their
portfolios in foreign securities, which can involve special risks. The
Opportunity Fund invests primarily in small-cap stocks, which can be riskier
than the overall stock market. The Short-Intermediate Fund can invest up to
20% of its portfolio in foreign bonds, which can entail special risks. In
addition, it can invest up to 10% of its assets in high yield bonds, which
entail greater risk, such as less liquidity and possibility of default.
Semi-Annual Report/7
<PAGE>
Investor Services Corner:
New Automated Telephone System
Have you ever needed to learn the price of your PIMCO Advisors Fund at the end
of the trading day? Or wanted a quick overview on the financial markets? With
PIMCO Advisors' new Automated Telephone Information System these facts and more
are available 24-hours a day!
PIMCO Advisors' new system provides a wide variety of financial
information, including:
. the latest day's fund prices
. fund dividend information
. account balances and details on recent transactions (for shareholders who
receive account statements directly from PIMCO Advisors)
. stock and bond market closing prices
. timely reviews of the financial markets.
The system is easy to use--simply dial 1-800-223-2413 from your touch-tone
phone.
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MAIN MENU
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Once you're connected you'll be asked to select from these options For help in
moving about the system, you can use these options
1 for information about the PIMCO Advisors
Funds (i.e., current prices, recent distributions)
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2 for information about your account
(i.e., account value, recent transactions)
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3 to make an account transaction with a customer
service representative (during business hours)
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4 to create or change a Personal Identification
Number (PIN)
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5 for an update on the financial markets
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HELP GETTING AROUND
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For help in moving about the system, you can use these options
* 1 to go to other items on the main menu
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* 2 to fast-forward in the selection you're
listening to
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* 3 to delete your entry
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* 4 to listen to more options
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* 5 to return to the beginning of your
selection from the main menu
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* 6 to return to the main menu
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* 7 to repeat the most recent information
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* 8 to return to the shareholder
identification process
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* 9 to repeat information for the last account
number entered
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* 0 to speak with a customer service
representative during regular business hours
We believe you'll find this new service to be a convenient way to learn more
about your Funds, and the financial markets in general. To receive a free
brochure that contains more information on the system, and details on the other
shareholder services available from PIMCO Advisors, call us today at
1-800-227-7337, ext. 1115.
The PIMCO Advisors Funds Family
The PIMCO Advisors Funds are managed by PIMCO Advisors L.P.--a publicly traded
company that specializes in the investment management business. Currently, PIMCO
Advisors has $97 billion in assets under management, including $22 billion in
mutual funds. Under the PIMCO Advisors L.P. umbrella are six institutional
investment management firms--each with a specific investment discipline or
style. As primarily "institutional" managers, these firms manage assets for
large corporations, pensions and endowments. In fact, they collectively manage
assets for 35 of the 100 largest corporations in the U.S.
In the past, their high minimum account balances (up to $75 million in some
cases) kept these managers' expertise out of reach for most investors. However,
as managers of the PIMCO Advisors Funds, their expertise is now available to all
investors. To learn more about a fund manager, call us at 1-800-227-7337, ext.
1114 to receive a free brochure.
The PIMCO Advisors Funds Family consists of core stock and bond funds, as
well as more focused funds that allow investors to round out and customize their
portfolio. Together, the PIMCO Advisors Funds offer the breadth and quality that
will satisfy virtually every investor's needs.
SPECIALIZED STOCK FUND MANAGERS
PIMCO Advisors believes that different types of stock funds require specialized
expertise. To ensure that you get the highest quality management for whichever
PIMCO Advisors stock fund you choose, we have carefully matched each fund with a
PIMCO Advisors firm that specializes in that discipline.
PREMIER BOND FUND MANAGERS
The PIMCO Advisors bond funds are primarily managed by PIMCO Advisors' Pacific
Investment Management--one of the most respected names in institutional bond
management. Pacific Investment Management actively manages these funds with an
emphasis on total return potential--income and price change--rather than yield
alone. Overall, they avoid investment fads in favor of a long-term, conservative
approach that includes aggressively seeking opportunities in all sectors of the
fixed income market.
8/PIMCO Advisors Funds
<PAGE>
<TABLE>
<CAPTION>
PIMCO Advisors Stock Funds
Fund Name
(Symbols: Class A, B, C) Description Primary Composition PIMCO Advisors Manager
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Equity Income Fund More conservative stock fund that also Dividend-paying common stocks, Columbus Circle Investors
PQNAX, PQNBX, PQNCX provides regular income component preferred stocks, convertible
securities
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Value Fund More conservative stock fund emphasizing Common stocks, no NFJ Investment Group
PVLAX, PVLBX, PVLCX relatively under-priced stocks market-capitalization
restrictions
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Growth Fund Solid core stock fund option with Stocks of larger, Columbus Circle Investors
PGWAX, PGFBX, PGWCX over a 10-year record well-established companies
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Target Fund Stock fund concentrating on the niche Stocks of medium-capitalized Columbus Circle Investors
PTAAX, PTABX, PTACX of medium-capitalized companies companies
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Discovery Fund Aggressive fund focused on reasonably Stocks of smaller-capitalized Cadence Capital Management
PDSAX, PDSBX, PDSCX priced smaller-capitalized companies companies
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Opportunity Fund Aggressive fund concentrating on stocks Stocks of smaller-capitalized Columbus Circle Investors
POPAX, N/A, POPCX of smaller-capitalized growth companies companies
(closed to new investors)
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Innovation Fund Aggressive fund specializing in the Stocks of companies that use Columbus Circle Investors
PIVAX, PIVBX, PIVCX stocks of technology-related companies technology in an innovative way
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International Fund International stock fund providing Stocks of companies based Blairlogie Capital
PILAX, PILBX, PILCX access to developed and emerging outside the U.S. Management
international markets
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Precious Metals Fund Specialized stock fund offering an Stocks of companies which Van Eck Associates
PPMAX, PPMBX, PPMCX efficient way to invest in the gold extract, process, distribute,
sector and market precious metals
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<CAPTION>
PIMCO Advisors Bond Funds
Fund Name Primary Composition
(Symbols: Class A, B, C) Description (Duration Range) PIMCO Advisors Manager
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Global Income Fund Globally diversified bond fund Investment-grade foreign and Pacific Investment
PGCAX, PGCBX, PGCCX U.S. bonds (3-6 years) Management
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High Income Fund Our highest yielding bond fund Intermediate-term portfolio Pacific Investment
PHNAX, PHNBX, PHNCX of higher yielding bonds Management
(2-6 years)
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Total Return Income Fund Good core bond fund option Intermediate-term portfolio of Pacific Investment
PTNAX, PRIBX, PTNCX investment-grade bonds Management
(3-6 years)
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Tax Exempt Fund Nationally diversified, tax-exempt Investment-grade municipal Columbus Circle Investors
PTEAX, PETBX, PTECX municipal bond fund bonds (3-10 years)
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U.S. Government Fund Our highest quality bond fund Intermediate-term portfolio of Pacific Investment
PUSAX, PUVBX, PUSCX U.S. government bonds Management
(3-6 years)
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Short-Intermediate Fund More conservative, shorter-term Shorter-term portfolio of Pacific Investment
PSNAX, PSNBX, PSNCX bond fund investment- grade bonds Management
(1-3 years)
- ------------------------------------------------------------------------------------------------------------------------------------
Money Market Fund Conservative, highly Short-term money market Columbus Circle Investors
PYAXX, PYBXX, PYCXX liquid bond fund instruments (less than 1 year)
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Stock Fund notes: The Opportunity and Discovery Funds invest primarily in
companies with smaller capitalizations, which historically have been more
volatile than the general market and pose a greater chance of failure than
stocks of larger, more established companies. The Innovation and Precious Metals
Funds concentrate their portfolios and therefore may be more volatile than a
more diversified stock portfolio. As such, these Funds should be considered only
as part of a more diversified portfolio. The PIMCO Advisors stock funds can
invest a portion of their portfolios in foreign securities, with the
International Fund investing primarily in these securities. International
investing involves special risks due to foreign economic and political
developments. Van Eck Associates, the manager of the Precious Metals Fund, is
not a PIMCO Advisors L.P. firm.
Bond Fund notes: Duration is a measure of the Fund's price sensitivity in
response to changes in interest rates. The High Income, Total Return Income and
Short-Intermediate Funds can invest a portion of their assets in foreign
securities, with the Global Income Fund investing primarily in these securities.
Foreign securities involve special risks due to foreign economic and political
developments. These Funds and the Tax Exempt Fund can invest a portion of their
assets in high yield bonds, with the High Income Fund investing primarily in
these securities. High yield bonds entail greater risk, such as less liquidity
and the possibility of default. The U.S. Government Fund is not guaranteed by
the U.S. government. An investment in the Money Market Fund is neither insured
nor guaranteed by the U.S. government and there can be no assurances that the
Fund will be able to maintain a stable net asset value of $1.00 per share.
Semi-Annual Report/9
<PAGE>
PIMCO Advisors Funds
Financial Information
We are pleased to present an in-depth review of the PIMCO Advisors Funds as of
March 31, 1996. The report is broken down into a number of sections, in order to
help analyze, compare and contrast the Funds. Listed below is a table of
contents and descriptions of the various sections.
PG. 11-55 FUND SUMMARY/PORTFOLIO OF INVESTMENTS:
A summary of a Fund's performance record and portfolio composition, and a review
from the Fund's investment manager. The portfolio of investments includes a
listing of securities in the Fund's portfolio as of March 31, 1996, including
the number of shares and value as of that date.
Stock Funds Bond Funds
PG. 11 Equity Income Fund PG. 38 Global Income Fund
PG. 14 Value Fund PG. 41 High Income Fund
PG. 17 Growth Fund PG. 44 Total Return Income Fund
PG. 20 Target Fund PG. 46 Tax Exempt Fund
PG. 23 Discovery Fund PG. 49 U.S. Government Fund
PG. 26 Opportunity Fund PG. 51 Short-Intermediate Fund
PG. 29 Innovation Fund PG. 54 Money Market Fund
PG. 31 International Fund
PG. 36 Precious Metals Fund
PG. 56 FINANCIAL HIGHLIGHTS:
This chart shows a per share breakdown of the factors that affect a Fund's NAV
for the current and past reporting periods. In addition to showing total return,
the chart reports distributions, asset size, expense ratios and portfolio
turnover rate.
PG. 64 STATEMENT OF ASSETS AND LIABILITIES:
A "balance sheet" of a Fund as of the last day of the fiscal period. It includes
the Fund's NAV per share by dividing the Fund's total net assets (assets minus
liabilities) by the number of shares outstanding.
PG. 66 STATEMENT OF OPERATIONS:
This statement lists a Fund's income, expenses, and gains and losses on
securities and currency transactions, and from appreciation or depreciation from
portfolio holdings.
PG. 68 STATEMENT OF CHANGES IN NET ASSETS:
This reports the increase or decrease in a Fund's net assets during the
reporting period. Changes in net assets are due to a variety of factors,
including investment operations, dividends, distributions and capital share
transactions.
PG. 70 NOTES TO FINANCIAL STATEMENTS:
A description of the significant accounting policies of the funds, and more
detailed information about the schedules and tables that appear in the report.
10/PIMCO Advisors Funds
<PAGE>
- --------------------------------------------------------------------------------
PIMCO Advisors
Equity Income Fund March 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C>
Objective: Portfolio: Total Net Assets: Number of Securities PIMCO Advisors
Long-term growth Primarily dividend- $220 million in the Portfolio: Institutional Manager:
of capital and current paying common stocks, 50 (not including short-term Columbus Circle
income. preferred stocks and instruments) Investors
convertible securities.
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE*
- --------------------------------------------------------------------------------
Average Annual Total Return For periods ended 3/31/96
<TABLE>
<CAPTION>
A Shares B Shares C Shares Lipper Equity
(Incep. 2/1/91) (Incep. 5/22/95) (Incep. 4/18/88) Income Fund
Adjusted Adjusted Adjusted S&P 500 Average
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C>
1 year 29.0% 21.9% -- -- 27.0% 32.1% 26.4%
3 years 14.9% 12.8% -- -- 14.1% 15.7% 12.6%
5 years 15.6% 14.3% -- -- 14.8% 14.7% 13.5%
Inception 16.9% 15.6% 26.6% 21.6% 10.5% -- --
</TABLE>
* The adjusted returns above include the effects of applicable sales charges.
B share returns are unannualized. The chart to the right reflects the
performance of PIMCO Advisors Equity Income Fund C through March 31, 1996.
The performance of Equity Income Fund A and B will be greater or less than
the line shown based on differences in inception dates, fees, and sales
charges. Past performance is not an indication of future results. See page
54 for Footnotes, which should be read in connection with this material.
[GRAPHIC APPEARS HERE] THE GRAPHIC DEPICTS THE VALUE OF $10,000 INVESTED SINCE
INCEPTION IN THE FUND'S CLASS C SHARES AND THE S&P 500
INDEX THROUGH 3/31/96 WOULD BE WORTH $22,100 AND $31,610;
RESPECTIVELY.
MONTH EQUITY INCOME C S&P 500 INDEX
----------- --------------- -------------
03/31/88 10000 10000
09/30/88 10190 10584
09/30/89 12010 14071
09/30/90 9847 12771
09/30/91 12451 16742
09/30/92 13679 18590
09/30/93 17012 21001
09/30/94 17132 21807
09/30/95 19727 28296
03/31/96 22100 31610
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
Top 10 Holdings
<TABLE>
<CAPTION>
Company Primary Business % of Net Assets
- --------------------------------------------------------------------------------
<S> <C>
Perkin-Elmer Corp. Analytical instruments, optics 3.3%
- --------------------------------------------------------------------------------
Kimberly-Clark Consumer paper products; newsprint 3.2%
- --------------------------------------------------------------------------------
Liz Claiborne Designer women's apparel 3.0%
- --------------------------------------------------------------------------------
Mobil Corp. International oil/gas exploration, development 3.0%
- --------------------------------------------------------------------------------
Boeing Co. Manufacture jet airplanes: missiles 2.9%
- --------------------------------------------------------------------------------
CIGNA Corp. Multi-line insurance holding company 2.9%
- --------------------------------------------------------------------------------
Black & Decker Manufacture power tools/home products 2.7%
- --------------------------------------------------------------------------------
Merck & Co. Ethical drugs/specialty chemicals 2.7%
- --------------------------------------------------------------------------------
Amerada Hess Corp. Oil exploration, products, refining, marketing 2.5%
- --------------------------------------------------------------------------------
Monsanto Co. Major chemical producer 2.5%
- --------------------------------------------------------------------------------
Top Ten Total 28.7%
</TABLE>
[GRAPHIC APPEARS HERE]
GRAPHIC IS DESCRIBED IN TABLE BELOW:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Portfolio Composition
- --------------------------------------------------------------------------------
<S> <C>
Common Stocks 84%
Convertible Bonds 6%
Corporate Bonds 3%
Convertible Preferred 3%
Cash Equivalents 4%
</TABLE>
Cash Equivalents include short-term instruments, cash and other assets less
liabilities.
<TABLE>
<CAPTION>
Top 5 Industries % of Net Assets
<S> <C>
- --------------------------------------------------------------------------------
Oil and Oil & Gas Drilling 13.3%
- --------------------------------------------------------------------------------
Chemicals 8.4%
- --------------------------------------------------------------------------------
Utilities 8.3%
- --------------------------------------------------------------------------------
Computers & Office Equip 7.6%
- --------------------------------------------------------------------------------
Insurance 7.3%
- --------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
With returns of 12.4% for the Class A shares and 12.0% for Class C, the Equity
Income Fund outperformed both the Standard & Poor's 500 (an unmanaged index of
common stocks), and the Lipper Equity Income Fund Average for the six-month
period ended March 31, 1996.
Over the last six months the manager increased the portfolio's weighting in
common stocks, and in the process, decreased its holding of convertible
securities. This was done to limit the exposure to the less liquid convertible
securities market, and was a major reason why the Fund surpassed its benchmarks
for the last six months. By reallocating assets into common stocks, the Fund
increased its weighting in the energy sector while maintaining the percentage in
two of its larger focuses, technology and special situation companies.
Within the energy sector, companies benefited from positive earnings
surprises that came as a result of rising fuel costs. Mobil Corp. and Amerada
Hess (oil & gas exploration and development corporations) were two stocks the
Fund purchased in the fourth quarter of 1995 to take advantage of the increasing
prices. Chemical producer Monsanto Company was one of the top performing
holdings in the Equity Income Fund for the six months ended March 31.
Another main focus of the Fund was companies whose performances are not
necessarily affected by the economy, also known as special situations. In an
uncertain economic environment such as the last six months, these types of
stories play a larger role in a company's earnings. Examples of special
situations were companies that merged, restructured, or experienced strong
results due to the success of a specific product or service. Perkin-Elmer (an
analytical instrument company), benefited from the announcement of a
restructuring program under a new management team, and posted one of the Fund's
largest increases for the first quarter of 1996. Seagate Technology (a
manufacturer of magnetic disk drives for computers) is another example of a
special situation company. It produced positive results due to the potential
synergy following its recent merger with Conner Peripherals.
An area that underperformed in the Fund for the last six months was
utilities. The negative performance reflected the unanticipated rise in interest
rates, which created a higher operating cost for utility companies such as
Illinova CP Holding (holding company for Illinois Power).
The manager believes there is a need for additional evidence before
determining if recent economic strength is sustainable. If a growth trend
continues, the Fund may increase its cyclical holdings, adding companies that
will benefit from a prospering economy. But until there is this stronger
indication of continued growth, the majority of the portfolio will continue to
stress existing themes.
Semi-Annual Report See accompanying notes/11
<PAGE>
PIMCO Advisors
Equity Income Fund
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Value
($ in thousands) Amount (Note 2)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Short-Term Notes--9.0%
- --------------------------------------------------------------------------------
<S> <C> <C>
Apreco, Inc., 5.270%, 4/10/96 $ 3,800 $ 3,794
Corporate Asset Funding Co., Inc., 5.450%,
4/1/96 2,000 2,000
Golden Managers Acceptance Corp., 5.250%,
4/3/96 1,700 1,699
Matterhorn Capital Corp., 5.270%, 4/15/96 3,000 2,993
National Rural Utilities Cooperative Finance
Corp., 5.180%, 4/2/96 2,000 2,000
Pepsico, Inc., 5.330%, 4/22/96 1,400 1,395
Redland Finance, Inc., 5.280%, 4/11/96 3,000 2,995
Siemens Corp., 5.180%, 4/11/96 3,000 2,995
--------
Total Short-Term Notes
(Cost $19,875) 19,871
--------
- --------------------------------------------------------------------------------
Corporate Bonds and Notes--3.2%
- --------------------------------------------------------------------------------
Financial Services--1.9%
Aames Financial Corp., 5.500%, 3/15/06 4,000 4,140
--------
Medical Supplies--1.3%
American Medical Response, 5.250%,
2/1/01 2,600 2,886
--------
Total Corporate Bonds and Notes
(Cost $6,665) 7,026
--------
- --------------------------------------------------------------------------------
Convertible Bonds and Notes--5.6%
- --------------------------------------------------------------------------------
Computer Services and Software--2.0%
Connor Peripherals, Inc., 6.500%, 3/1/02 3,910 4,380
--------
Computers--1.0%
Storage Technology Corp., 8.000%, 5/31/15 2,210 2,221
--------
Financial Services--1.6%
First Financial Mgt., 5.000%, 12/15/99 2,050 3,482
--------
Retail--1.0%
Pier 1 Imports, Inc., 6.875%, 4/1/02 1,950 2,262
--------
Total Convertible Bonds and Notes
(Cost $11,224) 12,345
--------
Shares
- --------------------------------------------------------------------------------
Common Stocks--83.9%
- --------------------------------------------------------------------------------
Apparel--3.0%
Liz Claiborne, Inc. 193,000 6,610
--------
Appliances--2.8%
Black & Decker Corp. 159,600 6,045
--------
Automotive Manufacturing--2.0%
Chrysler Corp. 71,600 4,457
--------
Automotive Parts and Equipment--1.2%
Arvin Industries, Inc. 130,300 2,704
--------
Banks--3.2%
Bank of New York Co., Inc. 60,300 3,105
Fleet Financial Group, Inc. 99,300 4,022
--------
7,127
--------
Beverage--2.2%
Pepsico, Inc. 75,000 4,744
--------
Chemicals--8.4%
B.F. Goodrich Co. 42,200 3,355
IMC Global, Inc. 114,200 4,168
Monsanto Co. 35,900 5,511
<CAPTION>
Principal Value
($ in thousands) Amount (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
Chemicals--8.4% (continued)
Witco Corp. $154,800 $ 5,457
--------
18,491
--------
Computer Services--1.7%
General Motors, Class E 67,313 3,837
--------
Computers--1.3%
Data General Corp. (b) 202,900 2,967
--------
Electronics--5.0%
Perkin-Elmer Corp. 135,300 7,323
UCAR International, Inc. (b) 93,900 3,650
--------
10,973
--------
Entertainment and Leisure--2.9%
Callaway Golf Co. 150,800 4,034
Sturm Rutger & Co., Inc. 59,200 2,279
--------
6,313
--------
Financial Services--2.5%
Ryland Group, Inc. 209,100 3,372
Student Loan Marketing Association 26,400 2,020
--------
5,392
--------
Forest and Paper Products--3.2%
Kimberly Clark Corp. 94,400 7,033
--------
Health Management--2.0%
Tenet Healthcare Corp. 204,100 4,286
--------
Industrial Components--1.4%
Armstrong World Industries, Inc. 47,800 2,970
--------
Insurance--6.3%
Aetna Life & Casualty Co. 58,400 4,409
Cigna Corp. 56,000 6,398
Penncorp Financial Group, Inc. 99,900 3,147
--------
13,954
--------
Medical Supplies--2.5%
Johnson & Johnson 59,300 5,470
--------
Miscellaneous Manufacturing--2.9%
Boeing Co. 74,800 6,480
--------
Oil and Gas--11.0%
Amerada Hess Corp. 101,500 5,583
Consolidated Natural Gas Co. 75,500 3,284
Halliburton Co. 65,000 3,697
Mobil Corp. 57,000 6,605
Williams Cos., Inc. 99,500 5,012
--------
24,181
--------
Oil Pipeline--2.4%
Sonat, Inc. 143,200 5,155
--------
Pharmaceuticals--3.2%
American Home Products Corp. 10,000 1,084
Merck & Co., Inc. 94,300 5,870
--------
6,954
--------
Retail--2.5%
Pier 1 Imports, Inc. 253,000 3,194
TJX Cos., Inc. 90,700 2,279
--------
5,473
--------
Telecommunications--2.0%
Frontier Corp. 137,600 4,334
--------
</TABLE>
12/PIMCO Advisors Funds See accompanying notes
<PAGE>
PIMCO Advisors
Equity Income Fund
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Value
($ in thousands) Shares (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
Utilities: Electric--1.7%
Illinova Corp. 135,900 $ 3,822
--------
Utilities: Telephone Systems--6.6%
AT&T Corp. 72,700 4,453
GTE Corp. 110,000 4,826
MCI Communications Corp. 173,400 5,245
--------
14,524
--------
Total Common Stocks
(Cost $162,115) 184,296
--------
- --------------------------------------------------------------------------------
Convertible Preferred Stocks--2.5%
- --------------------------------------------------------------------------------
Computer Services and Software--1.5%
Wang Labs, Inc., Series B 62,000 3,387
--------
Insurance--1.0%
Allstate Corp., $2.30 53,175 2,074
--------
Total Convertible Preferred Stocks
(Cost $5,189) 5,461
--------
Total Investments (a)--104.2%
(Cost $205,068) $228,999
--------
Other Assets and Liabilities, Net--(4.2%) (9,134)
--------
Total Net Assets--100.0% $219,865
========
</TABLE>
Notes to Portfolio of Investments ($ in thousands):
(a) The cost of investments for federal income tax purposes is $205,068. At
March 31, 1996, net unrealized appreciation was $23,931. This consisted of
aggregate gross unrealized appreciation for all investments on which there was
an excess of market value over tax cost of $25,424 and aggregate gross
unrealized depreciation of all investments on which there was an excess of tax
cost over market value of $1,493.
(b) Non-income producing security.
Semi-Annual Report See accompanying notes/13
<PAGE>
- --------------------------------------------------------------------------------
PIMCO Advisors
Value Fund March 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Objective: Portfolio: Total Net Assets: Number of Securities PIMCO Advisors
Long-term Primarily stocks $40 million in the Portfolio: Institutional Manager:
growth of the manager believes 69 (not including NFJ Investment Group
capital and are undervalued and/or short-term
current income. offer above average instruments)
dividend yields.
- -----------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE*
- --------------------------------------------------------------------------------
Total Return For periods ended 3/31/96
<TABLE>
<CAPTION>
A Shares B Shares C Shares
(Incep. 6/27/95) (Incep. 6/27/95) (Incep. 6/27/95)
Adjusted Adjusted Adjusted
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Inception 20.2% 13.6% 19.6% 14.6% 19.5% 18.5%
</TABLE>
* The adjusted returns above include the effects of applicable sales charges.
The chart to the right reflects the performance of PIMCO Advisors Value
Fund A, B and C since inception through March 31, 1996. Past performance is
not an indication of future results. See page 54 for Foot-notes, which
should be read in connection with this material.
[GRAPHIC APPEARS HERE] GRAPHIC DEPICTS THE VALUE OF $10,000 INVESTED AT THE
FUND'S INCEPTION THROUGH 3/31/96 IN CLASS A, B AND C
SHARES AND THE S&P 500 INDEX OF $11,356; $11,459; $11,849
AND $12,059; RESPECTIVELY.
VALUE VALUE A VALUE B VALUE C S&P 500 INDEX
- ----- ------- ------- ------- -------------
6/30/95 9450 10000 10000 10000
9/30/95 10154 10725 10725 10795
3/31/96 11358 11459 11849 12059
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Top 10 Holdings
Company Primary Business % of Net Assets
- --------------------------------------------------------------------------------
<S> <C>
Phelps Dodge Corp. Largest U.S. copper producer 3.1%
- --------------------------------------------------------------------------------
Northrop Grumman Corp. Aerospace, aircraft, missile 3.0%
- --------------------------------------------------------------------------------
Bear Stearns Co., Inc. Investment banking, brokerage 3.0%
- --------------------------------------------------------------------------------
Ultramar Corp. Refiners: markets petroleum products 2.9%
- --------------------------------------------------------------------------------
Pacific Telesis Group Telephone service: California and Nevada 2.7%
- --------------------------------------------------------------------------------
American Home Products Drugs, food, household ware, packaged medicine 2.6%
- --------------------------------------------------------------------------------
Chrysler Corp. Third largest auto maker 2.5%
- --------------------------------------------------------------------------------
Chase Manhattan Corp. Commercial banking, New York 2.4%
- --------------------------------------------------------------------------------
Maytag Corp. Manufacturer of major home appliances 2.4%
- --------------------------------------------------------------------------------
DTE Energy Co. Public utility: electric 2.3%
- --------------------------------------------------------------------------------
Top Ten Total 26.9%
</TABLE>
Investment Breakdown
- --------------------------------------------------------------------------------
[GRAPHIC APPEARS HERE] INFORMATION DEPICTED IN THE GRAPHIC IS SET FORTH IN THE
TABLE BELOW:
Common Stocks 92%
Cash Equivalents 8%
- --------------------------------------------------------------------------------
Cash Equivalents include short-term instruments, cash and other assets less
liabilities.
<TABLE>
<CAPTION>
Top 5 Industries % of Net Assets
- --------------------------------------------------------------------------------
<S> <C>
Utilities 10.4%
- --------------------------------------------------------------------------------
Oil and Oil & Gas Drilling 9.2%
- --------------------------------------------------------------------------------
Banking 7.2%
- --------------------------------------------------------------------------------
Food, Beverages, Tobacco 6.2%
- --------------------------------------------------------------------------------
Pharmaceuticals 5.6%
- --------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
The PIMCO Advisors Value Fund produced impressive results for the six-month
period ended March 31, 1996, with its A shares gaining 11.8% while the B and C
shares returned 11.4%. These returns outperformed the Lipper Growth and Income
Fund Average for the same period, and added to the success the Fund has had
since its June 27, 1995 inception.
A slow-moving economy slightly hindered value stocks for the fourth quarter
of 1995. But, following the March 8, 1996 employment report that portrayed an
economy growing faster than perceived, economically sensitive groups (also known
as cyclicals) outperformed defensive issues such as consumer staples. This trend
aided the performance of the Value Fund because economically sensitive
companies, associated with value investing, historically perform well in a
strengthening economy.
As a result of the manager's wide industry diversification, the Fund was
well positioned to take advantage of the positive economic report, with an
overweighting relative to the S&P 500 Index in both the basic industry and
consumer cyclical sectors. Examples of stocks that benefited were Union Carbide
(a chemical and plastic company), AMR Corp. (holding company of American
Airlines), Ford (automotive maker), and PHH Corp. (a management services
company).
Not only was a relative overweighting in outperforming sectors beneficial
to the Fund, but a relative underweighting in certain sectors aided its
performance as well. Emphasis by the manager on lower than market
price-to-earnings ratios, higher than average dividend yields, and broad
industry diversification resulted in these underweighted positions. Examples
included technology, a sector that underperformed the overall stock market for
the six months ended March 31, and consumer staples, an area hindered by a
growing economy.
One area that did not perform well for the Fund was the utilities sector.
The unanticipated rise in interest rates in the first quarter of 1996 resulted
in increasing operating costs for companies such as Pacific Gas & Electric and
Pacific Telesis. These two holdings were among the underperformers for the Value
Fund during the last six months.
Looking ahead, the Value Fund's manager believes there will be additional
evidence that the economy is growing. And the manager will maintain its
weighting in economically sensitive sectors to partake in this growth. Also, the
yield factor, which has been out of favor as evidenced by a record low Standard
& Poor's 500 dividend yield, will possibly play a larger role. As the baby
boomer generation ages, the manager believes they will shift their emphasis away
from growth stocks toward higher yielding equity investments, such as
value-oriented stocks. This could ultimately help the performance of value
funds.
14/PIMCO Advisors Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
PIMCO Advisors
Value Fund
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS March 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Value
($ in thousands) Shares (Note 2)
- --------------------------------------------------------------------------------
Common Stocks--91.7%
- --------------------------------------------------------------------------------
<S> <C> <C>
Advertising--1.0%
Omnicom Group, Inc. 9,200 $ 414
-------
Aerospace--3.9%
Northrop Grumman Corp. 19,000 1,209
Raytheon Co. 7,000 359
-------
1,568
-------
Apparel--0.2%
Reebok International Ltd. 3,600 99
-------
Appliances--3.1%
Maytag Corp. 47,000 952
Premark International, Inc. 5,200 279
-------
1,231
-------
Automotive Manufacturing--3.5%
Chrysler Corp. 16,300 1,015
Ford Motor Co. 12,000 413
-------
1,428
-------
Banks--7.2%
Bankers Trust Co. (N.Y.) 3,700 262
Chase Manhattan Corp. 13,000 956
Mellon Bank Corp. 17,000 937
PNC Bancorp 11,500 354
Standard Federal Bancorporation 9,000 383
-------
2,892
-------
Beverage--2.2%
Anheuser-Busch Cos., Inc. 13,400 903
-------
Building Materials and
Construction--0.9%
Lennar Corp. 15,000 373
-------
Chemicals--3.2%
Dow Chemical 4,600 400
PPG Industries, Inc. 7,700 376
Union Carbide Corp. 7,400 367
Wellman, Inc. 5,500 129
-------
1,272
-------
Commercial Services--1.9%
PHH Corp. 14,000 779
-------
Computers--0.9%
Seagate Technology, Inc. (b) 7,000 383
-------
Copper Mining--3.1%
Phelps Dodge Corp. 18,000 1,235
-------
Copying--1.3%
Xerox Corp. 4,200 527
-------
Electronics--0.6%
Advanced Micro Devices, Inc. (b) 2,600 45
Mentor Graphics Corp. (b) 12,500 178
-------
223
-------
Entertainment and Leisure--1.4%
Brunswick Corp. 25,000 575
-------
Financial Services--3.0%
Bear Stearns Cos., Inc. 48,000 1,188
-------
Food--1.0%
IBP, Inc. 15,000 384
-------
Forest and Paper Products--1.6%
Potlatch Corp. 8,500 363
Willamette Industries, Inc. 4,500 271
-------
634
-------
Health Management--0.8%
Tenet Healthcare Corp. (b) 15,600 328
-------
Insurance--3.9%
Aetna Life & Casualty Co. 4,700 355
Loews Corp. 4,100 310
Provident Cos., Inc. 30,000 911
-------
1,576
-------
Machinery and Engineering--0.9%
Deere & Co. 8,600 359
-------
Medical Supplies--1.9%
Baxter International, Inc. 8,000 362
Beckman Instruments, Inc. 10,000 390
-------
752
-------
Multi-Industry--0.6%
Unilever N.V. ADR 1,800 244
-------
Oil and Gas--9.2%
Atlantic Richfield Co. 7,000 833
Repsol, S.A. ADR 19,000 710
Texaco, Inc. 9,000 774
Ultramar Corp. 41,000 1,184
Union Texas Petroleum Holdings, Inc. 10,000 198
-------
3,699
-------
Pharmaceuticals--5.6%
American Home Products Corp. 9,500 1,030
Bristol-Myers Squibb Co. 4,000 343
Upjohn Co. 22,000 877
-------
2,250
-------
Printing--3.2%
Harland (John H.) Co. 16,000 352
Harris Corp. 15,000 928
-------
1,280
-------
Real Estate--0.9%
Meditrust Corp. 11,000 373
-------
Retail--3.5%
Dillard Department Stores, Inc. 4,200 145
Kmart Corp. 18,000 169
Supervalu, Inc. 30,000 926
Tandy Corp. 3,800 176
-------
1,416
-------
Telecommunications--3.6%
Pacific Telesis Group 39,000 1,077
Southern New England
Telecommunications Corp. 9,000 362
-------
1,439
-------
Textiles--0.8%
Springs Industries, Inc., Class A 7,000 322
-------
Tire and Rubber--0.7%
Goodyear Tire & Rubber Co. (The) 5,300 270
-------
</TABLE>
PIMCO Advisors Funds See accompanying notes/15
<PAGE>
PIMCO Advisors
Value Fund
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Value
($ in thousands) Shares (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
Tobacco--3.0%
Philip Morris Cos., Inc. 10,000 $ 878
RJR Nabisco Holdings Corp. 10,500 318
-------
1,196
-------
Transportation: Air--0.4%
AMR Corp. (b) 1,800 161
-------
Transportation: Rail--2.3%
Conrail, Inc. 8,000 573
GATX Corp. 8,000 368
-------
941
-------
Utilities: Electric--5.7%
DTE Energy Co. 28,000 942
Pacific Gas & Electric Co. 29,000 656
PP&L Resources, Inc. 14,400 351
Washington Water Power Co. 17,900 342
-------
2,291
-------
Utilities: Gas--2.8%
NICOR, Inc. 27,000 722
Peoples Energy Corp. 13,000 420
-------
1,142
-------
Utilities: Telephone Systems--1.9%
Sprint Corp. 20,200 $ 767
-------
Total Common Stocks
(Cost $34,104) 36,914
-------
Total Investments (a)--91.7%
(Cost $34,104) 36,914
-------
Other Assets and Liabilities, Net--8.3% 3,326
-------
Total Net Assets--100.0% $40,240
=======
</TABLE>
Notes to Portfolio of Investments ($ in thousands):
(a) The cost of investments for federal income tax purposes is $34,104. At March
31, 1996, net unrealized appreciation was $2,810. This consisted of aggregate
gross unrealized appreciation for all investments on which there was an excess
of market value over tax cost of $3,258 and aggregate gross unrealized
depreciation of all investments on which there was an excess of tax cost over
market value of $448.
(b) Non-income producing security.
16/PIMCO Advisors Funds See accompanying notes
<PAGE>
- --------------------------------------------------------------------------------
PIMCO Advisors
Growth Fund March 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Objective: Portfolio: Total Net Assets: Number of Securities PIMCO Advisors
Long-term growth Primarily stocks of larger, $1,554 million in the Portfolio: Institutional Manager:
of capital. Income is an well-established 45 (not including short-term Columbus Circle
incidental consideration. companies. instruments) Investors
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE*
- --------------------------------------------------------------------------------
Average Annual Total Return For periods ended 3/31/96
<TABLE>
<CAPTION>
A Shares B Shares C Shares Lipper
(Incep. 10/26/90) (Incep. 5/23/95) (Incep. 2/24/84) Growth Fund
Adjusted Adjusted Adjusted S&P 500 Average
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C>
1 year 29.1% 22.0% -- -- 27.2% 32.1% 28.3%
5 years 13.8% 12.5% -- -- 13.0% 14.7% 13.4%
10 years -- -- -- -- 13.9% 14.0% 11.9%
Inception 17.0% 15.8% 19.9% 14.9% 16.3% -- --
</TABLE>
* The adjusted returns above include the effects of applicable sales charges.
B share returns are unannualized. The chart to the right reflects the
performance of PIMCO Advisors Growth Fund C through March 31, 1996. The
performance of Growth Fund A and B will be greater or less than the line
shown based on differences in inception dates, fees, and sales charges.
Past performance is not an indication of future results. See page 54 for
Footnotes, which should be read in connection with this material.
[GRAPHIC APPEARS HERE] GRAPHIC DEPICTS THAT THE VALUE OF $10,000 INVESTED AT THE
FUND'S INCEPTION IN CLASS C SHARES AND THE S&P 500 INDEX
THROUGH 3/31/96 WOULD BE WORTH $62,342 AND $61,557;
RESPECTIVELY.
GROWTH S&P 500
MONTH C INDEX
------ ------ -------
12/31/83 10000 10000
09/30/84 10986 10873
09/30/85 12628 12449
09/30/86 17409 16401
09/30/87 24641 23522
09/30/88 21007 20607
09/30/89 29903 27398
09/30/90 27508 24866
09/30/91 37155 32598
09/30/92 39722 36197
09/30/93 46416 40891
09/30/94 46650 42468
09/30/95 57281 55103
03/31/96 62342 61557
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Top 10 Holdings
Company Primary Business % of Net Assets
- --------------------------------------------------------------------------------
<S> <C>
Kimberly-Clark Consumer paper products; newsprint 3.8%
- --------------------------------------------------------------------------------
Microsoft Corp. Software for microcomputers 3.8%
- --------------------------------------------------------------------------------
Boeing Co. Manufacturer jet airplanes: missiles 3.3%
- --------------------------------------------------------------------------------
Loral Corp. Military electronic systems 3.2%
- --------------------------------------------------------------------------------
Johnson & Johnson Healthcare products 3.1%
- --------------------------------------------------------------------------------
MCI Communications Telecommunications network, services 3.1%
- --------------------------------------------------------------------------------
Pepsico, Inc. Soft drink, snack food, food service 3.1%
- --------------------------------------------------------------------------------
Cisco Systems, Inc. Manufacturer of computer network products 3.0%
- --------------------------------------------------------------------------------
Merck & Co. Ethical drugs, specialty chemicals 2.9%
- --------------------------------------------------------------------------------
Columbia HCA Healthcare Healthcare facilities/services 2.9%
- --------------------------------------------------------------------------------
Top Ten Total 32.2%
</TABLE>
Investment Breakdown
[GRAPHIC APPEARS HERE] INFORMATION DEPICTED IN THE GRAPHIC IS SET FORTH IN THE
TABLE BELOW:
<TABLE>
<S> <C>
Common Stocks 91%
Cash Equivalents 9%
</TABLE>
Cash Equivalents include short-term instruments, cash and other assets less
liabilities.
<TABLE>
<CAPTION>
Top 5 Industries % of Net Assets
- --------------------------------------------------------------------------------
<S> <C>
Computers & Office Equip. 18.1%
- --------------------------------------------------------------------------------
Healthcare 10.8%
- --------------------------------------------------------------------------------
Insurance 7.2%
- --------------------------------------------------------------------------------
Utilities 7.1%
- --------------------------------------------------------------------------------
Pharmaceuticals 5.7%
- --------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
The Growth Fund continued to outperform the Lipper Growth Fund Average, for both
the long- and short-term. Over the ten-year period ended March 31, 1996 the C
shares returned 13.9% annualized, outdistancing the Lipper Growth Fund Average,
while the six-month gain of 8.8% also surpassed its Lipper average.
Technology, finance, and healthcare were the Fund's largest three sectors
for the six-month period ended March 31, 1996, with their percentage of the
portfolio remaining relatively constant over that time.
The technology portion of the Fund performed well in the first three months
of 1996 after a weak fourth quarter of 1995. In the fourth quarter, excess
inventories in the semiconductor industry led to significant price declines for
many products as demand decelerated while capacity growth was accelerating. This
prompted the manager to decrease the Funds commodity oriented semiconductor
companies in favor of technology companies benefiting from strong long-term
trends. Examples included Microsoft and Cisco Systems, Inc.
In the finance sector, after bank takeovers dominated the fourth quarter
performance to the disadvantage of the Fund, emphasis shifted back to company
specific stories in the first quarter. Chemical Bank was a stellar performer,
benefiting from a growing awareness of significant cost savings due to its
merger with Chase Bank. Green Tree Financial's expansion into new markets and
market share gains in their core manufactured housing market also continued to
exceed investor expectations and were rewarded with strong stock price
performance.
Aided by an aging population, a shortening of approval process for new
products from the Federal Food & Drug Administration, and a rotation by
investors to defensive stocks, the healthcare sector played a major role in the
Growth Fund's success for the period. Examples included Columbia Healthcare (a
manager of healthcare facilities) and Merck & Co. (a pharmaceutical firm).
Late in the quarter evidence began pointing to a stronger than expected
economy and investors responded by focusing on cyclical companies. The Fund
participated in this trend to a modest degree as the stronger economy has led to
positive surprise in select cyclical industries. On balance though, the evidence
suggests that economic growth is only at a modest pace and the manager remains
weighted toward beneficiaries of longer-term trends and positively surprising
internal changes, such as consolidations and restructuring. By seeking good
companies that are surprising the market with positive results, the manager
feels the Fund could perform well in this type of economic environment.
Semi-Annual Report See accompanying notes/17
<PAGE>
<TABLE>
<CAPTION>
PIMCO Advisors
Growth Fund
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Principal Value
($ in thousands) Amount (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
Short-Term Notes--10.2%
Apreco, Inc., 5.270%-5.370%,
4/10/96-4/30/96 $13,800 $ 13,765
BBV Finance, 5.240%, 4/12/96 10,000 9,983
BHF Finance, 5.350%, 4/17/96 10,000 9,975
Canadian Wheat Board, 5.220%, 4/9/96 9,000 8,988
Cooperative Association of Tractor Dealers,
Inc., 5.300%, 4/9/96 10,500 10,487
Corporate Asset Funding Co., Inc.,
5.180%-5.450%, 4/1/96-4/2/96 11,800 11,797
CSW Credit, Inc., 5.220%-5.350%,
4/16/96-4/18/96 9,600 9,575
Dean Witter Discover Corp., 5.320%,
4/16/96 7,200 7,183
Golden Managers Acceptance Corp.,
5.250%, 4/3/96 10,000 9,996
Government Development Bank of Puerto
Rico, 5.400%, 5/1/96 9,000 8,958
Koch Industries, 5.460%, 4/1/96 7,000 6,999
Matterhorn Capital Corp., 5.270%, 4/15/96 10,000 9,978
National Rural Utilities Cooperative Finance
Corp., 5.190%, 4/9/96 4,500 4,494
Pepsico, Inc., 5.330%, 4/22/96 3,200 3,190
Preferred Receivables Funding Corp.,
5.350%-5.450%, 4/10/96-4/17/96 9,700 9,681
Redland Finance, Inc., 5.280%, 4/11/96 12,000 11,980
Siemens Corp., 5.180%, 4/11/96 4,900 4,892
Student Loan Corp., 5.230%, 4/4/96 7,000 6,995
----------
Total Short-Term Notes
(Cost $158,940) 158,916
----------
Shares
- --------------------------------------------------------------------------------
Common Stocks--90.7%
- --------------------------------------------------------------------------------
Appliances--2.8%
Black & Decker Corp. 1,140,000 43,178
----------
Banks--4.8%
Bank of New York Co., Inc. 490,000 25,235
Chase Manhattan Corp. 500,000 35,250
Fleet Financial Group, Inc. 370,000 14,985
----------
75,470
----------
Beverage--3.0%
Pepsico, Inc. 750,000 47,438
----------
Chemicals--0.9%
IMC Global, Inc. 400,000 14,600
----------
Communication Equipment--1.0%
U.S. Robotics Corp. (b) 115,000 14,864
----------
Computer Services and Software--15.8%
Cisco Systems, Inc. (b)(c) 1,000,000 46,375
Computer Associates International, Inc. 600,000 42,975
Computer Sciences Corp. (b) 389,000 27,375
First Data Corp. 350,000 24,675
Informix Corp. (b) 650,000 17,144
Microsoft Corp. (b) 570,000 58,780
Oracle Systems Corp. (b)(c) 585,000 27,568
----------
244,892
----------
Value
($ in thousands) Shares (Note 2)
- --------------------------------------------------------------------------------
Computers--2.3%
Hewlett-Packard Co. 375,000 $ 35,250
----------
Electronics--4.2%
Honeywell, Inc. 287,000 15,857
Loral Corp. 1,000,000 49,000
----------
64,857
----------
Entertainment and Leisure--3.9%
Disney (Walt) Company (The) 370,000 23,634
Viacom Inc., Class B (b) 887,000 37,365
----------
60,999
----------
Financial Services--3.1%
Green Tree Financial Corp. 950,000 32,655
MGIC Investment Corp. 290,000 15,805
----------
48,460
----------
Forest and Paper Products--3.8%
Kimberly Clark Corp. 800,000 59,600
----------
Health Care--2.1%
United Healthcare Corp. (b) 533,000 32,780
----------
Health Management--2.9%
Columbia HCA Healthcare Corp. 780,000 45,045
----------
Insurance--7.2%
Aetna Life & Casualty Co. 300,000 22,650
Allstate Corp. 615,000 25,907
American International Group, Inc. 365,000 34,173
Cigna Corp. 250,000 28,563
----------
111,293
----------
Media--2.0%
Infinity Broadcasting Corp., Class A (b) 380,000 16,483
Liberty Media Group, Series A (b) 580,000 15,298
----------
31,781
----------
Medical Supplies--5.8%
Boston Scientific Corp. (b) 370,000 17,020
Guidant Corp. 440,000 23,815
Johnson & Johnson 530,000 48,893
----------
89,728
----------
Miscellaneous Manufacturing--4.9%
Boeing Co. 600,000 51,975
Nike, Inc., Class B 290,000 23,563
----------
75,538
----------
Oil and Gas Services--2.8%
Schulmberger Ltd. 555,000 43,914
----------
Pharmaceuticals--5.7%
Amgen, Inc. (b) 746,000 43,360
Merck & Co., Inc. 725,000 45,130
----------
88,490
----------
Retail--3.7%
Federated Department Stores, Inc. (b) 760,000 24,510
Home Depot, Inc. 375,000 17,953
Office Depot, Inc. (b) 750,000 14,719
----------
57,182
----------
Telecommunications--0.9%
Cascade Communications Corp. (b)(c) 150,000 13,463
----------
</TABLE>
18/Semi-Annual Report See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
PIMCO Advisors
Growth Fund
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Principal Value
($ in thousands) Amount (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
Utilities: Telephone Systems--7.1%
AT&T Corp. 710,000 $ 43,488
MCI Communications Corp. 1,600,000 48,400
Worldcom, Inc. (b) 400,000 18,400
----------
110,288
----------
Total Common Stocks
(Cost $1,110,848) $1,409,110
----------
<CAPTION>
Contracts
- --------------------------------------------------------------------------------
Purchased Put Options--0.1%
- --------------------------------------------------------------------------------
Standard & Poor's 500 Index,
expiring April `96 @ $640 895 660
Standard & Poor's 500 Index,
expiring April `96 @ $645 895 850
Standard & Poor's 500 Index,
expiring April `96 @ $650 447 526
----------
Total Purchased Put Options
(Cost $1,880) 2,036
----------
Total Securities Owned (a)
(Cost $1,271,668) 1,570,062
----------
- --------------------------------------------------------------------------------
Outstanding Call Options Written--(0.1%)
- --------------------------------------------------------------------------------
Cascade Communications Corp.,
expiring April `96 @ $85 1,500 (1,444)
Cisco Systems, Inc.,
expiring April `96 @ $47.50 677 (101)
Cisco Systems, Inc.,
expiring May `96 @ $45 1,167 (540)
Oracle Systems Corp.,
expiring April `96 @ $50 1,373 (86)
----------
Total Outstanding Call Options Written
(Premiums Received $1,547) (2,171)
----------
<CAPTION>
Value
($ in thousands) (Note 2)
- --------------------------------------------------------------------------------
Total Investments,
Net of Outstanding Options Written--100.9%
(Cost $1,270,121) $1,567,891
----------
Other Assets and Liabilities, Net--(0.9%) (14,057)
----------
Total Net Assets--100.0% $1,553,834
==========
</TABLE>
Notes to Portfolio of Investments ($ in thousands):
(a) The cost of investments for federal income tax purposes is $1,271,668. At
March 31, 1996, net unrealized appreciation was $298,394. This consisted of
aggregate gross unrealized appreciation for all investments on which there was
an excess of market value over tax cost of $312,277 and aggregate gross
unrealized depreciation of all investments on which there was an excess of tax
cost over market value of $13,883.
(b) Non-income producing security.
(c) See Outstanding Call Options Written.
Semi-Annual Report See accompanying notes/19
<PAGE>
- --------------------------------------------------------------------------------
PIMCO Advisors
Target Fund March 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Objective: Portfolio: Total Net Assets: Number of Securities PIMCO Advisors
Capital appreciation. Stocks of companies $1,033 million in the Portfolio: Institutional Manager:
with medium-sized 50 (not including short-term Columbus Circle
capitalizations. instruments) Investors
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE*
- --------------------------------------------------------------------------------
Average Annual Total Return For periods ended 3/31/96
<TABLE>
<CAPTION>
A Shares B Shares C Shares S&P Lipper
(Incep. 12/17/92) (Incep. 5/22/95) (Incep. 12/17/92) Mid-Cap Mid-Cap
Adjusted Adjusted Adjusted Index Fund Avg.
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 year 28.7% 21.6% -- -- 26.7% 28.6% 30.2%
3 years 19.5% 17.2% -- -- 18.6% 13.9% 15.4%
Inception 20.0% 17.9% 24.7% 19.7% 19.1% -- --
</TABLE>
* The adjusted returns above include the effects of applicable sales charges.
B share returns are unannualized. The chart to the right reflects the
performance of PIMCO Advisors Target Fund A and C through March 31, 1996.
The performance of Target Fund B will be greater or less than the lines
shown based on differences in inception dates, fees, and sales charges.
Past performance is not an indication of future results. See page 54 for
Footnotes, which should be read in connection with this material.
[GRAPHIC APPEARS HERE] GRAPHIC DEPICTS THE VALUE OF $10,000 INVESTED IN CLASS A
AND CLASS C SHARES AND THE S&P MID CAP INDEX AT THE
FUND'S INCEPTION THROUGH 3/31/96 WOULD BE WORTH $17,208;
$17,759 AND $15,274; RESPECTIVELY.
MONTH TARGET A TARGET C S&P MID CAP INDEX
----------- -------- -------- -----------------
09/30/92 9450 10000 10000
09/30/93 12020 12650 11100
09/30/94 12525 13074 11278
09/30/95 15846 16414 14185
3/31/96 17208 17759 15274
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Top 10 Holdings
Company Primary Business % of Net Assets
- ------------------------------------------------------------------------------------
<S> <C>
Guidant Corp. Designer/manufacturer cardiological equipment 5.0%
- ------------------------------------------------------------------------------------
HFS, Inc. Hotel franchise/services 4.4%
- ------------------------------------------------------------------------------------
Boston Chicken Operates franchise food service stores 4.1%
- ------------------------------------------------------------------------------------
HealthSouth Corp. Medical rehabilitation service 3.6%
- ------------------------------------------------------------------------------------
Prudential Reinsurance Hlds. Reinsurance property/casualty 3.5%
- ------------------------------------------------------------------------------------
Diebold, Inc. Record storage/bank security 3.0%
- ------------------------------------------------------------------------------------
Raychem Corp. Plastic & elastomeric insulation 2.8%
- ------------------------------------------------------------------------------------
Tenet Healthcare Corp. Specialty and general hospitals 2.5%
- ------------------------------------------------------------------------------------
Gartner Group Researcher/analysis of information and technology industries 2.3%
- ------------------------------------------------------------------------------------
Fore Systems, Inc. Manufacturer high-performance network products 2.3%
- ------------------------------------------------------------------------------------
Top Ten Total 33.5%
</TABLE>
Investment Breakdown
[GRAPHIC APPEARS HERE] INFORMATION DEPICTED IN THE GRAPHIC IS SET FORTH IN THE
TABLE BELOW:
<TABLE>
<S> <C>
Common Stocks 95%
Cash Equivalents 5%
</TABLE>
Cash Equivalents include short-term instruments, cash and other assets less
liabilities.
Top 5 Industries % of Net Assets
-------------------------------------
Computers & Office Equip. 14.4%
-------------------------------------
Healthcare 13.6%
-------------------------------------
Telecommunications 13.5%
-------------------------------------
Leisure Time 11.8%
-------------------------------------
Electronics and Electrical 7.0%
-------------------------------------
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
For the six-months ended March 31, 1996, the PIMCO Advisors Target Fund Class A
posted an 8.6% return and the B and C shares returned 8.1%. These results
outperformed the Lipper Mid-Cap Fund Average and the Standard & Poor's Mid-Cap
Index for that period. The Fund has also surpassed these benchmarks since its
December 17, 1992 inception, with an annualized return of 20%.
Performance for the fourth quarter of 1995 was affected by a slowing in the
Fund's largest sector, technology. This trend continued into the first quarter
due to a decreasing demand in the semiconductor industry. The overall weighting
in the technology sector was slightly reduced, and underperforming holdings
related to semiconductors, including MEMC Electronics and Vishay
Intertechnology, were deleted from the portfolio in the first quarter, with more
concentration being placed on Internet-related companies. Examples of these
networking holdings are Fore Systems (a high-performance network product
manufacturer), and Ascend Communications (a developer of network access
products).
The Fund's relative performance was also somewhat hurt by a "flight to
quality" in the financial markets. This occurs when investors look for stability
in company names that they recognize and feel comfortable with. Because the
majority of these are large capitalization companies, the small- and mid-cap
stocks are often negatively affected during these shifts. The first quarter was
an example of this movement, and as a result, the manager searched for more
"special situations", or companies whose prices are driven by company-specific
factors, not by industry or economic trends.
Several examples of "special situation" companies in the Target Fund that
were top contributors in the last six months were Harley Davidson (strong
performance following the announced sale of its troubled non-motorcycle
operations), HFS, Inc. (a hotel and real estate brokerage franchiser whose
string of positive announcements regarding new vendor programs were additive to
earnings), and Guidant Corp. (a medical device manufacturer that performed well
after several new product approvals).
One of the Target Fund's newest sectors, the oil service group, benefited
as strong demand and limited supply of drilling rigs and vessels pushed
utilization and rates to multi-year highs. Diamond Offshore Drilling and Ensco
International were two additions involved in offshore contract drilling.
Going forward, the manager believes its special situation and technology
holdings will continue to play an important part in the Fund's performance.
Also, in order to capitalize on what appears to be a moderately growing economy,
the manager intends to increase exposure to economically sensitive companies.
20/PIMCO Advisors Funds See accompanying notes
<PAGE>
PIMCO Advisors
Target Fund
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Principal Value
($ in thousands) Amount (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
Short-Term Notes--6.8%
- --------------------------------------------------------------------------------
BBY Finance, 5.250%, 4/10/96 $ 5,000 $ 4,993
Bell Atlantic Network Funding Corp.,
5.420%, 4/11/96 7,500 7,488
Canadian Wheat Board, 5.220%, 4/9/96 7,000 6,991
Corporate Asset Funding Co., Inc., 5.180%,
4/2/96 5,000 4,998
CSW Credit, Inc., 5.220%, 4/16/96 5,300 5,288
Golden Managers Acceptance Corp.,
5.250%, 4/3/96 8,900 8,896
Goldman Sachs & Co., 5.250%, 4/9/96 7,800 7,790
Oesterreichische Kontrol Bank, 5.350%,
5/6/96 7,000 6,962
Pepsico, Inc., 5.320%, 4/25/96 6,500 6,476
Siemens Corp., 5.180%, 4/11/96 9,000 8,986
Student Loan Corp., 5.230%, 4/4/96 1,400 1,399
----------
Total Short-Term Notes
(Cost $70,277) 70,267
----------
<CAPTION>
Shares
- --------------------------------------------------------------------------------
Common Stocks--94.9%
- --------------------------------------------------------------------------------
Advertising--1.0%
Omnicon Group, Inc. 234,600 10,557
----------
Apparel--1.5%
Liz Claiborne, Inc. 445,100 15,245
----------
Automotive Manufacturing--1.8%
Harley-Davidson, Inc. 469,200 18,240
----------
Chemicals--3.8%
Goodrich (B.F.) Co. 129,600 10,303
Raychem Corp. 449,600 28,999
----------
39,302
----------
Computer Services and Software--10.7%
Baan Co. N.V. (b) 259,200 14,936
DST Systems, Inc. (b) 508,200 15,564
Madge Networks N.V. (b) 529,200 21,234
Peoplesoft, Inc. (b) 284,400 16,353
Sterling Software, Inc. (b) 280,200 19,754
Structural Dynamics Research (b) 674,000 22,748
----------
110,589
----------
Computers--3.7%
Adaptec, Inc. (b) 320,100 15,445
Filenet Corp. (b) 209,900 12,122
Storage Technology Corp. (b) 397,000 10,371
----------
37,938
----------
Cosmetics--1.3%
Estee Lauder Cos., Class A 393,100 14,053
----------
Electrical Equipment--2.3%
Fore Systems, Inc. (b) 328,400 23,481
----------
Electronics--4.7%
Diebold, Inc. 775,650 30,735
UCAR International, Inc. (b) 457,100 17,770
----------
48,505
----------
Entertainment and Leisure--7.7%
Callaway Golf Co. 752,300 $ 20,124
Hospitality Franchise Systems, Inc. (b) 926,200 45,037
MGM Grand, Inc. (b) 369,600 14,183
----------
79,344
----------
Environmental Control--1.0%
USA Waste Services, Inc. (b) 415,700 10,600
----------
Health Care--8.6%
Biogen, Inc. (b) 176,300 10,490
Healthsouth Rehabilitation Corp. (b) 1,068,600 36,332
Medpartners/Mullikin, Inc. (b) 567,300 16,168
Tenet Healthcare Corp. (b) 1,241,000 26,061
----------
89,051
----------
Insurance--3.5%
Prudential Reinsurance 1,529,800 36,142
----------
Media--5.3%
Clear Channel Communications, Inc. (b) 281,800 15,922
Gartner Group, Inc., Class A (b) 385,600 23,521
Scholastic Corp. (b) 231,155 15,892
----------
55,335
----------
Medical Supplies--5.0%
Guidant Corp. 946,300 51,218
----------
Metals and Mining--1.0%
Potash Corp. of Saskatchewan 168,400 10,525
----------
Miscellaneous Manufacturing--1.8%
Oakley, Inc. (b)(c) 500,000 18,875
----------
Oil and Gas--5.3%
Diamond Offshore Drilling (b) 357,300 15,319
Ensco International, Inc. (b) 621,800 17,333
Tidewater, Inc. 576,700 21,915
----------
54,567
----------
Restaurants--4.1%
Boston Chicken, Inc. (b) 1,240,100 42,241
----------
Retail--5.3%
Autozone, Inc. (b) 319,700 10,830
Bed Bath & Beyond, Inc. (b) 183,000 9,653
General Nutrition Cos., Inc. (b) 803,100 20,077
OfficeMax, Inc. (b) 571,200 13,852
----------
54,412
----------
Telecommunications--12.5%
Ascend Communications, Inc. (b) 263,300 14,185
Aspect Telecommunications (b)(c) 309,500 14,160
MFS Communications Co. (b) 343,700 21,395
Millicom International Cellular S.A. (b) 393,440 17,016
Newbridge Networks Corp. (b) 402,800 22,658
Paging Network, Inc. (b) 900,400 22,510
Qualcomm, Inc. (b) 409,300 16,986
----------
128,910
----------
Textiles--2.0%
Gucci Group N.V. (b) 440,600 21,149
----------
Utilities: Telephone Systems--1.0%
Cincinnati Bell, Inc. 199,500 10,374
----------
</TABLE>
Semi-Annual Reports See accompanying notes/21
<PAGE>
<TABLE>
<CAPTION>
PIMCO Advisors
Target Fund
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Value
($ in thousands) (Note 2)
- --------------------------------------------------------------------------------
<S> <C>
Total Common Stocks
(Cost $774,518) $ 980,653
----------
Total Securities Owned (a)
(Cost $844,795) 1,050,920
----------
Contracts
- --------------------------------------------------------------------------------
Outstanding Call Options Written--(0.0%)
- --------------------------------------------------------------------------------
Aspect Telecommunications,
expiring April `96 @ $55 1,500 (47)
Oakley, Inc., expiring April `96 @ $35 1,150 (388)
----------
Total Outstanding Call Options Written
(Premiums Received $440) (435)
----------
Total Investments,
Net of Outstanding Options Written--101.7%
(Cost $844,355) 1,050,485
----------
Other Assets and Liabilities, Net--(1.7%) $ (17,074)
----------
Total Net Assets--100.0% $1,033,411
==========
</TABLE>
Notes to Portfolio of Investments ($ in thousands):
(a) The cost of investments for federal income tax purposes is $844,795. At
March 31, 1996, net unrealized appreciation was $206,125. This consisted of
aggregate gross unrealized appreciation for all investments on which there was
an excess of market value over tax cost of $211,994 and aggregate gross
unrealized depreciation of all investments on which there was an excess of tax
cost over market value of $5,869.
(b) Non-income producing security.
(c) See Outstanding Call Options Written.
22/PIMCO Advisors Funds See accompanying notes
<PAGE>
- --------------------------------------------------------------------------------
PIMCO Advisors
Discovery Fund March 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Objective: Portfolio: Total Net Assets: Number of Securities PIMCO Advisors
Capital appreciation. Primarily stocks of $60 million in the Portfolio: Institutional Manager:
smaller-capitalization 79 (not including short-term Cadence Capital
companies. instruments) Management
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE*
- --------------------------------------------------------------------------------
Total Return For periods ended 3/31/96
<TABLE>
<CAPTION>
A Shares B Shares C Shares
(Incep. 6/27/95) (Incep. 6/27/95) (Incep. 6/27/95)
Adjusted Adjusted Adjusted
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Inception 9.6% 3.6% 9.0% 4.0% 9.0% 8.0%
</TABLE>
* The adjusted returns above include the effects of applicable sales charges.
The chart to the right reflects the performance of PIMCO Advisors Discovery
Fund A, B and C since inception through March 31, 1996. Past performance is
not an indication of future results. See page 54 for Footnotes, which
should be read in connection with this material.
[GRAPHIC APPEARS HERE] GRAPHIC DEPICTS THE VALUE OF $10,000 INVESTED SINCE
INCEPTION IN THE FUND'S A, B AND C CLASSES OF SHARES AND
THE RUSSELL 2000 INDEX THROUGH 3/31/96 WOULD BE WORTH
$10,357; $10,400; $10,800 AND $11,771; RESPECTIVELY.
DISCOVERY DISCOVERY DISCOVERY RUSSELL
MONTH A B C 2000 INDEX
- --------- --------- --------- --------- ----------
6/30/95 9450 10000 10000 10000
9/30/95 10291 10860 10860 10959
3/31/96 10357 10400 10800 11771
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Top 10 Holdings
Company Primary Business % of Net Assets
- --------------------------------------------------------------------------------
<S> <C>
The Money Store Consumer and commercial loans 2.1%
- --------------------------------------------------------------------------------
Cadence Design Systems Software for computer-aided-engineering 1.9%
- --------------------------------------------------------------------------------
Health Management Assoc. Operates acute care hospitals 1.8%
- --------------------------------------------------------------------------------
United Video Satellite Satellite delivered program service 1.7%
- --------------------------------------------------------------------------------
Parametric Technology Mechanical design, software products 1.7%
- --------------------------------------------------------------------------------
U.S. Robotics Corp. Telecommunications equipment 1.6%
- --------------------------------------------------------------------------------
Roper Industries, Inc. Manufacturer fluid handling/control products 1.5%
- --------------------------------------------------------------------------------
Finova Group Real estate financing/insurance 1.5%
- --------------------------------------------------------------------------------
Orthodontic Centers of America Bone fracture treatment products 1.5%
- --------------------------------------------------------------------------------
Green Tree Financial Purchases housing contracts 1.4%
- --------------------------------------------------------------------------------
Top Ten Total 16.7%
</TABLE>
Investment Breakdown
[GRAPHIC APPEARS HERE] INFORMATION DEPICTED IN THE GRAPHIC IS SET FORTH IN THE
TABLE BELOW:
<TABLE>
<S> <C>
Common Stocks 97%
Cash Equivalents 3%
</TABLE>
Cash Equivalents include short-term instruments, cash and other assets less
liabilities.
<TABLE>
<CAPTION>
Top 5 Industries % of Net Assets
- --------------------------------------------------------------------------------
<S> <C>
Insurance 16.3%
- --------------------------------------------------------------------------------
Healthcare 12.2%
- --------------------------------------------------------------------------------
Banking 9.8%
- --------------------------------------------------------------------------------
Computers & Office Equip 8.7%
- --------------------------------------------------------------------------------
Electronics-Electrical 7.8%
- --------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
After a relatively slow fourth quarter of 1995 due largely to a decline in the
technology sector, the PIMCO Advisors Discovery Fund had a positive turnaround
in the first quarter of 1996, returning 4.7% for three months ended March 31,
1996. For the six-month period ended March 31, the A shares returned .6%, and
the B and C shares returned .3%, lagging the Russell 2000 Index, an unmanaged
index of small-company stocks.
The Discovery Fund Class A has returned 9.6% since its June 27, 1995,
inception. Cadence Capital Management, the Fund's manager, utilizes its
"growth-at-a-reasonable-price" style management, only adding companies to the
portfolio that it believes are fairly priced and meet certain investment
criteria.
Two of the top performing sectors for the Fund were financial services and
healthcare. A declining interest rate environment, as it was in 1995, benefits
the financial sector because it decreases the cost of borrowing money from other
financial institutions. Fund holdings that benefited were The Money Store (a
firm specializing in consumer and commercial loans), and Finova Group (a real
estate financing and insurance concern).
An aging population and a movement to managed care helped the performance
of the healthcare holdings within the Fund. Some of the stocks aided were Health
Management Association and Orthodontics Centers of America, two companies that
operate medical centers throughout the United States.
The main reason for the Fund's relative underperformance over the last six
months was related to an overweighting in the technology sector. The
semiconductor theme, one that was a focus of the Fund, was hurt by a series of
unfavorable supply/demand data during the fourth quarter. This caused a downturn
for Fund holdings such as Kulicke and Soffa Industries (manufacturers of
semiconductor equipment). The Fund's weighting in technology stocks has been
reduced to the third largest sector.
Going forward, the manager believes there will continue to be earnings
growth within the Fund's largest sectors, although it may slow within the
financial sector if interest rates continue to increase throughout 1996. The
technology area will remain an important part of the portfolio, and the Fund has
replaced many semiconductor holdings in favor of software companies in order to
take advantage of the escalating use of computers at home and in the workplace.
Healthcare should benefit from an increasing demand for medical care, a need
that will be caused by an aging population. The manager also believes
opportunities will be available in the energy sector, where rising fuel costs
are aiding the performance of oil drilling and natural gas companies.
Semi-Annual Report See accompanying notes/23
<PAGE>
<TABLE>
<CAPTION>
PIMCO Advisors
Discovery Fund
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Value
($ in thousands) Shares (Note 2)
- --------------------------------------------------------------------------------
Common Stocks--96.6%
- --------------------------------------------------------------------------------
<S> <C> <C>
Aerospace--1.1%
Alliant Techsystems, Inc. (b) 14,000 $ 677
Banks--9.8%
Associated Banc-Corp 20,800 785
Centura Banks, Inc. 22,700 834
City National Corp. 51,600 703
Cullen Frost Bankers 16,100 793
First American Corp.-Tenn 17,600 783
Mark Twain Bancshares 15,300 574
Trustmark Corp. 27,400 617
Union Planters Corp. 25,900 783
-------
5,872
-------
Biotechnology--1.3%
Physio-Control International, Corp. (b) 38,300 766
-------
Building Materials--2.6%
Oakwood Homes Corp. 15,700 779
Texas Industries, Inc. 11,900 757
-------
1,536
-------
Building Materials and Construction--2.9%
Lennar Corp. 6,700 167
Medusa Corp. 25,200 772
Redman Industries, Inc. (b) 38,200 774
-------
1,713
-------
Chemicals--3.1%
Cytec Industries Corp. (b) 9,300 786
Mississippi Chemical Corp. 19,900 403
Raychem Corp. 10,500 677
-------
1,866
-------
Communication Equipment--2.2%
Network Equipment Technologies, Inc. (b) 12,200 371
U.S. Robotics Corp. (b) 7,500 969
-------
1,340
-------
Computer Services and Software--8.7%
Cadence Design Systems, Inc. (b) 26,100 1,152
Cheyenne Software, Inc. (b) 8,300 131
Computer Horizons Corp. (b) 20,800 785
McAfee Associates, Inc. (b) 15,000 821
Parametric Technology Corp. (b) 25,600 1,002
Rational Software Corp. (b) 18,000 711
Structural Dynamics Research (b) 19,000 641
-------
5,243
-------
Containers--0.5%
Bemis Co. 9,400 295
-------
Electronics--7.8%
Belden, Inc. 24,400 720
Credence Systems Corp. (b) 43,700 732
EG&G, Inc. 33,900 759
Methode Electronics, Inc., Class A 52,500 853
Sanmina Corp. (b) 28,000 833
Wyle Electronics 22,700 786
-------
4,683
-------
Entertainment and Leisure--2.5%
Anthony Industries, Inc. 29,600 $ 784
Callaway Golf Co. 27,000 722
-------
1,506
-------
Environmental Control--1.3%
United Waste Systems, Inc. (b) 15,200 760
-------
Financial Services--6.3%
Countrywide Credit Industries, Inc. 34,800 770
Finova Group, Inc. 16,600 907
Green Tree Financial Corp. 25,100 863
Money Store, Inc. (The) 45,375 1,265
-------
3,805
-------
Food--1.3%
Richfood Holdings, Inc. 28,400 801
-------
Health Care--1.5%
Orthodontic Centers of America, Inc. (b) 30,000 900
-------
Health Management--5.5%
Health Management Associates, Inc.,
Class A (b) 31,050 1,087
Ornda HealthCorp. (b) 25,000 719
Physicians Reliance Network (b) 20,000 793
Universal Health Services, Inc., Class B (b) 13,800 733
-------
3,332
-------
Industrial Components--2.7%
IDEX Corp. 17,500 680
Roper Industries, Inc. 20,100 925
-------
1,605
-------
Insurance--16.3%
Allmerica Financial Corp. 22,800 601
Citizens Corp. 32,900 642
Gallagher (Arthur J.) & Co. 16,600 604
HCC Insurance Holdings, Inc. (b) 13,700 752
Maxicare Health Plans, Inc. (b) 28,700 716
Mid Ocean Ltd. 21,300 823
Mutual Risk Management Ltd. 18,200 753
Nac Re Corp. 17,900 584
National Re Corp. 19,900 672
Penncorp Financial Group, Inc. 25,000 788
Protective Life Corp. 23,500 793
Reinsurance Group of America 17,300 634
Selective Insurance Group 21,600 778
Vesta Insurance Group, Inc. 19,800 646
-------
9,786
-------
Machinery & Engineering--2.6%
Harnischfeger Industries, Inc. 19,500 756
United Dominion Industries Ltd. 32,400 786
-------
1,542
-------
Media--1.7%
United Video Satellite Group, Class A (b) 47,800 1,004
-------
Medical Supplies--5.2%
Beckman Instruments, Inc. 20,400 796
Kinetic Concepts, Inc. 58,100 777
Rotech Medical Corp. (b) 20,700 766
Sybron International Corp. (b) 33,300 815
-------
3,154
-------
</TABLE>
24/PIMCO Advisors Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
PIMCO Advisors
Discovery Fund
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Value
($ in thousands) Shares (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
Metal Fabrication--1.3%
Mueller Industries, Inc. (b) 22,800 $ 806
-------
Multi-Industry--1.4%
First Brands Corp. 29,400 822
-------
Pharmaceuticals--2.3%
ICN Pharmaceuticals, Inc. 34,200 757
Watson Pharmaceuticals, Inc. (b) 15,800 631
-------
1,388
-------
Retail--2.4%
Ross Stores, Inc. 29,300 736
Tiffany & Co. 12,200 691
-------
1,427
-------
Transportation: Air--1.3%
America West Airlines (b) 37,300 796
-------
Transportation: Rail--1.0%
Stolt-Nielsen S.A 22,600 410
Stolt-Nielsen S.A. ADR (b) 11,300 201
-------
611
-------
Total Common Stocks
(Cost $51,637) 58,036
-------
<CAPTION>
Value
($ in thousands) (Note 2)
- --------------------------------------------------------------------------------
Total Investments (a)--96.6%
(Cost $51,637) $58,036
-------
Other Assets and Liabilities, Net--3.4% 2,053
-------
Total Net Assets--100.0% $60,089
=======
</TABLE>
Notes to Portfolio of Investments ($ in thousands):
(a) The cost of investments for federal income tax purposes is $51,637. At March
31, 1996, net unrealized appreciation was $6,399. This consisted of aggregate
gross unrealized appreciation for all investments on which there was an excess
of market value over tax cost of $7,161 and aggregate gross unrealized
depreciation of all investments on which there was an excess of tax cost over
market value of $762.
(b) Non-income producing security.
Semi-Annual Report See accompanying notes/25
<PAGE>
- --------------------------------------------------------------------------------
PIMCO Advisors
Opportunity Fund March 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Objective: Portfolio: Total Net Assets: Number of Securities PIMCO Advisors
Capital appreciation. Primarily stocks of $855 million in the Portfolio: Institutional Manager:
small-capitalization 49 (not including short-term Columbus Circle
companies. instruments) Investors
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE*
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Average Annual Total Return For periods ended 3/31/96
A Shares C Shares Lipper Cap.
(Incep. 12/17/90) (Incep. 2/24/84) Russell Apprec. Fund
Adjusted Adjusted 2000 Index Average
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C>
1 year 37.9% 30.3% 35.9% 29.1% 28.7%
5 years 27.0% 25.6% 26.1% 16.0% 14.2%
10 years -- -- 18.9% 10.4% 10.9%
Inception 32.5% 31.0% 20.1% -- --
</TABLE>
* The adjusted returns above include the effects of applicable sales charges.
The chart to the right reflects the performance of PIMCO Advisors
Opportunity Fund C through March 31, 1996. The performance of Opportunity
Fund A will be greater or less than the line shown based on differences in
inception dates, fees, and sales charges. Past performance is not an
indication of future results. See page 54 for Footnotes, which should be
read in connection with this material.
[GRAPHIC APPEARS HERE] GRAPHIC DEPICTS THE VALUE OF $10,000 INVESTED SINCE
INCEPTION IN THE FUND'S CLASS C SHARES AND THE RUSSELL
2000 INDEX THROUGH 3/31/96 WOULD BE WORTH $91,692 AND
$40,129; RESPECTIVELY.
OPPORTUNITY RUSSELL
MONTH C 2000 INDEX
----------- ----------- ----------
12/31/83 10000 10000
09/30/84 11214 10293
09/30/85 12462 11276
09/30/86 14610 13758
09/30/87 20487 17803
09/30/88 18642 15878
09/30/89 24846 19290
09/30/90 21162 14052
09/30/91 32667 20387
09/30/92 39449 22209
09/30/93 66695 29573
09/30/94 61767 30364
09/30/95 85629 37360
3/31/96 91692 40129
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Top 10 Holdings
Company Primary Business % of Net Assets
- --------------------------------------------------------------------------------
<S> <C>
Tommy Hilfiger Corp. Design, market men's sportswear 4.3%
- --------------------------------------------------------------------------------
Iomega Corp. Manufacturer computer disk drives 3.5%
- --------------------------------------------------------------------------------
Just For Feet Athletic/outdoor footwear 3.4%
- --------------------------------------------------------------------------------
Electronics For Imaging Developer publishing software 3.3%
- --------------------------------------------------------------------------------
Macromedia, Inc. Developer software authoring tools 3.1%
- --------------------------------------------------------------------------------
Oakwood Homes Corp. Mobile home manufacturer/retailer 2.9%
- --------------------------------------------------------------------------------
Comverse Technology Inc. Developer market computer systems 2.5%
- --------------------------------------------------------------------------------
Global Marine, Inc. Oil and gas contract drilling 2.5%
- --------------------------------------------------------------------------------
Medisense, Inc. Manufacturer blood glucose monitoring system 2.3%
- --------------------------------------------------------------------------------
Glendale Federal Savings bank, California 2.3%
- --------------------------------------------------------------------------------
Top Ten Total 30.1%
</TABLE>
Investment Breakdown
[GRAPHIC APPEARS HERE] INFORMATION IN THE GRAPHIC IS SET FORTH IN THE TABLE
BELOW:
<TABLE>
<S> <C>
Common Stocks 90%
Cash Equivalents 10%
</TABLE>
Cash Equivalents include short-term instruments, cash and other assets less
liabilities.
<TABLE>
<CAPTION>
Top 5 Industries % of Net Assets
- --------------------------------------------------------------------------------
<S> <C>
Computers & Office Equip. 20.0%
- --------------------------------------------------------------------------------
Oil and Oil & Gas Drilling 9.5%
- --------------------------------------------------------------------------------
Electronics-Electrical 9.4%
- --------------------------------------------------------------------------------
Telecommunications 8.0%
- --------------------------------------------------------------------------------
Building & Forest Products 7.0%
- --------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
The PIMCO Advisors Opportunity Fund continues to post superior results. For the
1-, 5- and 10-year periods ended March 31, 1996, it significantly outperformed
the Lipper Capital Appreciation Fund Average and the Russell 2000 Index, two
measures of small-cap mutual fund performance. For the short term, however, the
Fund's returns were slightly below the benchmarks, with the A shares returning
7.5% and the C shares rising 7.1% for the six-month period ended March 31, 1996.
After a relatively strong fourth quarter of 1995, the Fund underperformed
for the first three months of 1996, mainly due to a continued erosion in the
technology sector. This was caused by negative news regarding the semi-conductor
industry. Affected companies included Integrated Device Technology and Altera,
two firms that design, manufacture, market, and service semiconductor processing
equipment. In an effort to shift the Fund's focus within the technology area,
these companies were sold during the six-month period along with several other
semiconductor related holdings.
As a result of the movement out of technology, the sector's weighting was
approximately 33% at the end of the six months, versus the 40% weighting as of
the end of September, 1995. This sector weighting decrease was also due to the
sale of companies whose market success drove them through the Opportunity Fund's
market capitalization parameters. The Opportunity Fund targets companies with
capitalization under $1 billion. As these companies outgrow these parameters
they may be replaced by smaller-cap companies that fit into the manager's
investment philosophy.
Two other areas that continued to play large roles in the Fund's portfolio
were the consumer discretionary and consumer staples sectors. Two of the
Opportunity Fund's largest holdings included Tommy Hilfiger (a men's sportswear
designer and manufacturer), and Just for Feet (a chain of superstores that
specialize in athletic and outdoor footwear).
Going forward, the manager will continue to position the portfolio in a
less aggressive nature. A rotation into less risky and volatile securities, as
evidenced by a declining price-to-earnings ratio, will continue until the market
offers a larger supply of investment opportunities that fit within the
momentum/surprise philosophy.
Note: On December 31, 1992, the PIMCO Advisors Opportunity Fund was closed
to new investors. However, an existing shareholder can continue to make
investments in the Fund as long as the shareholder owns at least one share in
his or her account.
26/PIMCO Advisors Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
PIMCO Advisors
Opportunity Fund
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Principal Value
($ in thousands) Amount (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
Short-Term Notes--10.7%
- --------------------------------------------------------------------------------
Apreco, Inc., 5.370%, 4/10/96 $ 7,400 $ 7,389
Canadian Wheat Board, 5.220%, 4/9/96 6,000 5,992
Cooperative Association of Tractor Dealers,
Inc., 5.250%-5.400%, 4/1/96-4/4/96 5,800 6,396
Corporate Asset Funding Co. Inc., 5.180%,
4/2/96 4,000 3,999
CSW Credit, Inc., 5.220%, 4/16/96 1,300 1,297
Goldman Sachs & Co., 5.250%, 4/9/96 9,000 8,988
Matterhorn Capital Corp., 5.200%, 4/12/96 2,945 2,940
National Rural Utilities Cooperative Finance
Corp., 5.180%, 4/2/96 10,000 9,997
Pepsico, Inc., 5.180%-5.330%,
4/1/96-4/22/96 15,300 15,280
Preferred Receivables Funding Corp.,
5.450%, 4/10/96 4,700 4,693
Siemens Corp., 5.180%, 4/11/96 12,600 12,580
Student Loan Corp., 5.230%, 4/4/96 11,600 11,593
--------
Total Short-Term Notes
(Cost $91,158) 91,144
--------
<CAPTION>
Shares
- --------------------------------------------------------------------------------
Common Stocks--90.1%
- --------------------------------------------------------------------------------
Apparel--4.3%
Tommy Hilfiger Corp. (b) 800,000 36,700
--------
Banks--2.3%
Glendale Federal Bank FSB (b) 1,100,000 19,938
--------
Beverage--3.3%
Canandaigua Wine Co., Inc., Class A (b) 325,000 12,594
Robert Mondavi Corp., Class A (b) 590,000 15,193
--------
27,787
--------
Building Materials and Construction--7.0%
Champion Enterprises, Inc. (b) 435,000 12,452
Oakwood Homes Corp. 500,000 24,813
Pulte Corp. 400,000 10,750
U.S. Home Corp. (b) 475,000 12,230
--------
60,245
--------
Commercial Services--3.1%
Accustaff, Inc. (b)(c) 480,000 12,120
Norrell Corp. 445,000 14,740
--------
26,860
--------
Communication Equipment--1.8%
Glenayre Technologies, Inc. (b) 396,000 15,147
--------
Computer Services and Software--8.0%
Cognos, Inc. (b) 220,000 12,485
Computer Horizons Corp. (b) 500,000 18,875
Electronics for Imaging (b) 650,000 28,275
Network General Corp. (b) 225,000 9,000
--------
68,635
--------
<CAPTION>
Value
($ in thousands) Shares (Note 2)
- --------------------------------------------------------------------------------
Computers--12.0%
Boca Research, Inc. (b) 420,000 $ 7,665
Comverse Technology, Inc. (b) 900,000 21,712
Data General Corp. (b) 650,000 9,506
Gandalf Technologies, Inc. (b)(c) 850,000 12,538
Iomega Corp. (b)(c) 1,170,500 29,994
Mylex Corp. (b) 650,000 15,438
Proxima Corp. (b) 300,000 5,738
--------
102,591
--------
Cosmetics--1.7%
Thermolase Corp. (b) 600,000 14,550
--------
Electronics--9.4%
Checkpoint Systems, Inc. (b) 800,000 19,900
Harman International Industries, Inc. 472,500 17,719
Macromedia, Inc. (b) 630,000 26,933
Verifone, Inc. (b)(c) 375,000 15,750
--------
80,302
--------
Entertainment and Leisure--0.7%
Ride, Inc. (b) 400,000 5,550
--------
Health Care--1.7%
PhyCor, Inc. (b)(c) 330,000 14,520
--------
Insurance--3.9%
CMAC Investment Corp. 350,000 19,775
Penncorp Financial Group, Inc. 430,000 13,545
--------
33,320
--------
Machinery and Engineering--1.1%
Harnischfeger Industries, Inc. 250,000 9,688
--------
Medical Supplies--2.4%
Medisense, Inc. (b) 450,000 20,053
--------
Oil and Gas--3.5%
Pogo Producing Co. 500,000 15,625
Seagull Energy Corp. (b) 650,000 14,706
--------
30,331
--------
Oil and Gas Equipment--1.4%
Weatherford International, Inc. (b) 350,000 12,206
--------
Oil and Gas Services--4.5%
Global Marine, Inc. (b) 2,100,000 21,000
Sonat Offshore Drilling, Inc. 340,600 17,370
--------
38,370
--------
Pharmaceuticals--2.9%
Dura Pharmaceuticals, Inc. (b)(c) 325,000 16,128
Gilead Sciences, Inc. (b) 292,000 8,395
--------
24,523
--------
Restaurants--2.9%
Applebees's International, Inc. 600,000 15,000
Rainforest Cafe, Inc. (b) 300,000 9,450
--------
24,450
--------
Retail--4.5%
Just for Feet, Inc. (b)(c) 700,000 29,138
U.S. Office Products Co. (b)(c) 310,000 9,610
--------
38,748
--------
</TABLE>
Semi-Annual Report See accompanying notes/27
<PAGE>
<TABLE>
<CAPTION>
PIMCO Advisors
Opportunity Fund
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Principal Value
($ in thousands) Amount (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
Telecommunications--6.2%
Colonial Data Technologies Corp. (b)(c) 654,700 $ 14,485
DSP Communications, Inc. (b) 500,000 12,500
LCI International, Inc. (b) 377,100 9,239
WinStar Communications, Inc. (b) 1,050,000 16,931
--------
53,155
--------
Transportation: Air--1.5%
America West Airlines (b) 600,000 12,825
--------
Total Common Stocks
(Cost $565,572) 770,494
--------
Total Securities Owned (a)
(Cost $656,730) 861,638
--------
<CAPTION>
Contracts
- --------------------------------------------------------------------------------
Outstanding Call Options Written--(1.1%)
- --------------------------------------------------------------------------------
Accustaff, Inc., expiring April `96 @ $60 2,400 (1,260)
Colonial Data Technologies Corp., expiring
May `96 @ $25 1,500 (168)
Dura Pharmaceuticals, Inc., expiring
April `96 @ $50 750 (155)
Gandalf Technologies, Inc., expiring
April `96 @ $15 1,200 (98)
Iomega Corp., expiring April `96 @ $ 17.50 7,705 (6,742)
Just for Feet, Inc., expiring April `96 @ $40 1,500 (487)
PhyCor, Inc., expiring April `96 @ $50 1,400 (70)
U.S. Office Products Co., expiring
April `96 @ $30 750 (148)
Verifone, Inc., April `96 @ $40 400 (145)
<CAPTION>
Value
($ in thousands) (Note 2)
- --------------------------------------------------------------------------------
Total Outstanding Call Options Written
(Premiums Received $2,966) $(9,273)
--------
Total Investments,
Net of Outstanding Options Written--99.7%
(Cost $653,764) 852,365
--------
Other Assets and Liabilities, Net--0.3% 2,993
--------
Total Net Assets--100.0% $855,358
========
</TABLE>
Notes to Portfolio of Investments ($ in thousands):
(a) The cost of investments for federal income tax purposes is $656,730. At
March 31, 1996, net unrealized appreciation was $204,908. This consisted of
aggregate gross unrealized appreciation for all investments on which there was
an excess of market value over tax cost of $222,486 and aggregate gross
unrealized depreciation of all investments on which there was an excess of tax
cost over market value of $17,578.
(b) Non-income producing security.
(c) See Outstanding Call Options Written.
28/PIMCO Advisors Funds See accompanying notes
<PAGE>
- --------------------------------------------------------------------------------
PIMCO Advisors
Innovation Fund March 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Objective: Portfolio: Total Net Assets: Number of Securities PIMCO Advisors
Capital appreciation. Technology-related stocks $132 million in the Portfolio: Institutional Manager:
of companies of all sizes. 46 (not including short-term Columbus Circle
instruments) Investors
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE*
- --------------------------------------------------------------------------------
Average Annual Total Return For periods ended 3/31/96
<TABLE>
<CAPTION>
A Shares B Shares C Shares Lipper
(Incep. 12/22/94) (Incep. 5/22/95) (Incep. 12/22/94) Science &
Adjusted Adjusted Adjusted S&P 500 Tech. Avg.
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C>
1 year 37.2% 29.6% -- -- 35.2% 32.1% 29.2%
Inception 36.6% 30.7% 24.9% 19.9% 35.7% -- --
</TABLE>
* The adjusted returns above include the effects of applicable sales charges.
B share returns are unannualized. The chart to the right reflects the
performance of PIMCO Advisors Innovation Fund A and C through March 31,
1996. The performance of Innovation Fund B will be greater or less than the
lines shown based on differences in inception dates, fees, and sales
charges. Past performance is not an indication of future results. See page
54 for Footnotes, which should be read in connection with this material.
[GRAPHIC APPEARS HERE] GRAPHIC DEPICTS THE VALUE OF $10,000 INVESTED SINCE
INCEPTON THROUGH 3/31/96 IN THE FUND'S A AND C CLASSES OF
SHARES AND THE S&P 500 INDEX WOULD BE WORTH $14,064;
$14,752 AND $14,498; RESPECTIVELY.
INNOVATION INNOVATION S&P 500
MONTH A C INDEX
- ---------- ---------- ---------- -------
09/30/94 9450 10000 10000
09/30/95 13929 14550 12987
3/31/96 14064 14752 14498
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Top 10 Holdings
Company Primary Business % of Net Assets
- --------------------------------------------------------------------------------
<S> <C>
Cisco Systems, Inc. Manufacturer computer network products 4.9%
- --------------------------------------------------------------------------------
U.S. Robotics Corp. Telecommunication equipment 4.4%
- --------------------------------------------------------------------------------
Fore Systems, Inc. Manufacturer high-performance network products 4.3%
- --------------------------------------------------------------------------------
Guidant Corp. Design/manufacturer cardiological equipment 4.3%
- --------------------------------------------------------------------------------
Cascade Communication Manufacturer data communication network products 4.1%
- --------------------------------------------------------------------------------
Computer Sciences Corp. Provides computer services 3.0%
- --------------------------------------------------------------------------------
Computer Associates International System software packages 3.0%
- --------------------------------------------------------------------------------
Stratacom, Inc. Manufacturer of wide area network computer systems 2.8%
- --------------------------------------------------------------------------------
Ascend Communications Develop/market network access products 2.7%
- --------------------------------------------------------------------------------
Newbridge Networks Corp. Manufacturer digital networking products 2.6%
- --------------------------------------------------------------------------------
Top Ten Total 36.1%
</TABLE>
Investment Breakdown
[GRAPHIC APPEARS HERE] INFORMATION DEPICTED IN THE GRAPHIC IS SET FORTH IN THE
TABLE BELOW:
<TABLE>
<S> <C>
Common Stocks 92%
Cash Equivalents 8%
</TABLE>
Cash Equivalents include short-term instruments, cash and other assets less
liabilities.
<TABLE>
<CAPTION>
Top 5 Industries % of Net Assets
- --------------------------------------------------------------------------------
<S> <C>
Computers & Office Equip. 34.8%
- --------------------------------------------------------------------------------
Telecommunications 31.2%
- --------------------------------------------------------------------------------
Healthcare 10.8%
- --------------------------------------------------------------------------------
Electronics-Electrical 8.3%
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES 1.9%
- --------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
The PIMCO Advisors Innovation Fund has posted excellent results relative to
comparable funds for the last six months. Aided by favorable stock picking
within the technology sector, the Innovation Fund Class A posted a positive 1%
return versus the Lipper Science & Technology Fund Average of -5.1%. Since its
December 22, 1994 inception, the Fund has returned 48.8%, also surpassing its
Lipper Average.
A large part of the Fund's portfolio was invested in the technology and
healthcare sectors, due to its concentration on stocks of companies the manager
believes use technology in an innovative way to gain a strategic, competitive
advantage. With these two sectors underperforming the broader market averages
for the six-month period ended March 31, individual stock selection within them
became very important.
A slowdown in the semiconductor area, resulting from poor supply/demand
figures in the fourth quarter, prompted a shift within the technology sector
into stocks of companies supplying equipment that allows users to access the
Internet. Demand for this networking service continued to significantly exceed
investor expectations, and helped communications equipment companies such as
Cascade Communications and Ascend Communications.
Some other technology holdings that performed well for the last six months
were Cisco Systems, Inc. (a manufacturer of computer network products), Computer
Associates (a company that produces system software packages), and Tellabs, Inc.
(a voice and data communications equipment maker).
Healthcare continued to play an important role in the Innovation Fund,
although signs that the economy was picking up strength caused investors to back
away from this sector. This industry is defensive in nature, meaning it is not
as sensitive to a growing economy as others. The Fund's top performing
healthcare stock, Guidant Corp. (a cardiological equipment manufacturer),
benefited from several new product approvals. Sofamor Danek Group (a spinal
implant device maker) was added to the Fund in the first quarter because of its
accelerating sales and a renewal of confidence in the spinal implant industry.
Going forward, the manager believes signs of economic improvement are
welcome news for the technology sector. The passing of the Telecommunications
Industry Deregulation bill in the first quarter is a positive step that
createsopportunities for telecommunication equipment companies and service
providers to renew historical growth patterns. And although the current
environment makes it difficult to find technology and healthcare companies that
are producing positively surprising financial results, the manager will continue
to search for strong company specific stories that will contribute to the
performance of the Innovation Fund.
Semi-Annual Report See accompanying notes/29
<PAGE>
<TABLE>
<CAPTION>
PIMCO Advisors
Innovation Fund
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Principal Value
($ in thousands) Amount (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
Short-Term Notes--10.7%
- --------------------------------------------------------------------------------
BHF Finance, 5.350%, 4/17/96 $ 2,400 $ 2,394
Corporate Asset Funding Co. Inc.,
5.180%, 4/2/96 3,000 2,999
Goldman Sachs & Co., 5.250%, 4/9/96 1,000 999
Matterhorn Capital Corp., 5.270%, 4/15/96 2,000 1,996
Pepsico, Inc., 5.330%, 4/22/96 3,700 3,688
Siemens Corp., 5.180%, 4/11/96 2,000 1,997
---------
Total Short-Term Notes
(Cost $14,074) 14,073
---------
<CAPTION>
Shares
- --------------------------------------------------------------------------------
Common Stocks--92.0%
- --------------------------------------------------------------------------------
Commercial Services--1.9%
APAC Teleservices (b) 36,000 2,565
---------
Communication Equipment--11.0%
Ericsson (L.M.) Telephone Co. ADR, Class B 155,000 3,313
Glenayre Technologies, Inc. (b) 45,000 1,721
Stratacom, Inc. (b) 100,000 3,663
U.S. Robotics Corp. (b) 45,000 5,816
---------
14,513
---------
Computer Services and Software--25.1%
BDM International, Inc. (b) 40,000 1,530
Business Objects S.A. ADR (b) 15,000 1,275
CBT Group PLC ADR (b) 18,000 1,323
Cisco Systems, Inc. (b) 140,000 6,493
Computer Associates International, Inc. (b) 55,000 3,939
Computer Sciences Corp. (b) 57,000 4,011
Informix Corp. (b) 105,000 2,769
Oracle Systems Corp. (b)(c) 50,050 2,359
Pairgain Technologies, Inc. (b) 35,000 2,266
PRI Automation, Inc. (b) 90,000 2,205
Sterling Commerce, Inc. (b) 65,000 1,999
Sterling Software, Inc. (b) 30,000 2,115
Viasoft, Inc. (b) 25,000 703
---------
32,987
---------
Computers--9.7%
3Com Corp. (b) 80,000 3,190
Adaptec, Inc. (b) 55,000 2,654
Bay Networks, Inc. (b) 50,000 1,538
Data General Corp. (b) 130,000 1,901
Gandalf Technology (b) 120,000 1,770
Storage Technology Corp. (b) 66,000 1,724
---------
12,777
---------
Cosmetics--0.8%
Thermolase Corp. (b) 45,000 1,091
---------
Electrical Equipment--4.3%
Fore Systems, Inc. (b) 80,000 5,720
---------
Electronics--4.0%
Diebold, Inc. 65,000 2,576
Lexmark International Group, Inc., Class A (b) 140,000 2,713
---------
5,289
---------
Environmental Control--1.5%
U.S. Filter Corp. (b) 70,000 $ 1,960
---------
Medical Supplies--10.8%
Boston Scientific Corp. (b) 35,000 1,610
Guidant Corp. (b) 105,000 5,683
Neuro Medical (b) 70,000 1,523
Physician Sales (b) 80,000 1,980
Sofamor Danek Group Inc. (b) 60,000 2,033
Utah Medical Products, Inc. (b) 82,000 1,373
---------
14,202
---------
Miscellaneous Manufacturing--0.9%
Waters Corp. (b) 50,000 1,212
---------
Pharmaceuticals--1.8%
Amgen, Inc. (b) 40,000 2,325
---------
Telecommunications--19.2%
America Online, Inc. (b) 55,000 3,080
Ascend Communications, Inc. (b) 65,000 3,502
Cascade Communications Corp. (b)(c) 60,000 5,385
Newbridge Networks Corp. (b) 60,000 3,375
Premisys Communications (b) 60,000 1,950
Qualcomm, Inc. (b) 80,000 3,320
Tellabs, Inc. (b) 65,000 3,144
Trescom International, Inc. (b) 100,000 1,475
---------
25,231
---------
Utilities: Telephone Systems--1.0%
Cincinnati Bell, Inc. 24,700 1,283
---------
Total Common Stocks
(Cost $102,766) 121,155
---------
Total Securities Owned (a)
(Cost $116,840) 135,228
---------
<CAPTION>
Contracts
- --------------------------------------------------------------------------------
Outstanding Call Options Written--(0.1%)
- --------------------------------------------------------------------------------
Cascade Communications Corp., expiring
April `96 @ $85 120 (116)
Oracle Systems Corp., expiring
April `96 @ $50 145 (9)
---------
Total Outstanding Call Options Written
(Premiums Received $109) (125)
---------
Total Investments,
Net of Outstanding Options Written--102.6%
(Cost $116,731) 135,103
---------
Other Assets and Liabilities, Net--(2.6%) (3,438)
---------
Total Net Assets--100.0% $ 131,665
=========
</TABLE>
Notes to Portfolio of Investments ($ in thousands):
(a) The cost of investments for federal income tax purposes is $116,840. At
March 31, 1996, net unrealized appreciation was $18,388. This consisted of
aggregate gross unrealized appreciation for all investments on which there was
an excess of market value over tax cost of $21,537 and aggregate gross
unrealized depreciation of all investments on which there was an excess of tax
cost over market value of $3,149.
(b) Non-income producing security.
(c) See Outstanding Call Options Written.
30/PIMCO Advisors Funds See accompanying notes
<PAGE>
- --------------------------------------------------------------------------------
PIMCO Advisors
International Fund March 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Objective: Portfolio: Total Net Assets: Number of Securities PIMCO Advisors
Capital appreciation. Stocks of foreign $237 million in the Portfolio: Institutional Manager:
Income is an incidental (non-U.S.) companies. 258 (not including short-term Blairlogie Capital
consideration. instruments) Management
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE*
- --------------------------------------------------------------------------------
Average Annual Total Return For periods ended 3/31/96
<TABLE>
<CAPTION>
A Shares B Shares C Shares Lipper
(Incep. 2/1/91) (Incep. 5/22/95) (Incep. 8/25/86) MSCI EAFE Intl. Fund
Adjusted Adjusted Adjusted Index Average
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C>
1 year 14.8% 8.5% -- -- 13.0% 12.3% 16.1%
3 years 8.2% 6.2% -- -- 7.4% 13.4% 12.9%
5 years 8.2% 6.9% -- -- 7.4% 8.4% 9.5%
Inception 8.9% 7.7% 10.0% 5.0% 7.1% -- --
</TABLE>
* The adjusted returns above include the effects of applicable sales charges.
B share returns are non-annualized. The chart to the right reflects the
performance of PIMCO Advisors International Fund C through March 31, 1996.
The performance of International Fund A and B will be greater or less than
the line shown based on differences in inception dates, fees, and sales
charges. Past performance is not an indication of future results. See page
54 for Footnotes, which should be read in connection with this material.
[GRAPHIC APPEARS HERE] GRAPHIC DEPICTS THE VALUE OF $10,000 INVESTED SINCE
INCEPTION THROUGH 3/31/96 IN THE FUND'S C CLASS OF SHARES
AND THE MSCI EAFE INDEX WOULD BE WORTH $19,323 AND
$22,402; RESPECTIVELY.
MONTH INTERNATIONAL C MSCI EAFE INDEX
- ------------------ --------------- ---------------
08/30/86 10000 10000
09/30/86 9700 9897
09/30/87 12870 14338
09/30/88 11068 14217
09/30/89 14651 17389
09/30/90 12098 12589
09/30/91 14306 15345
09/30/92 13767 14253
09/30/93 17816 18009
09/30/94 19133 19779
09/30/95 18280 20925
03/31/96 19323 22402
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Top Holdings of Selected Countries
Country: Company Primary Business % of Net Assets
- --------------------------------------------------------------------------------
<S> <C>
Japan: Daiwa Securities Financial Services 2.0%
- --------------------------------------------------------------------------------
U.K.: Zeneca Group Chemicals 1.6%
- --------------------------------------------------------------------------------
Malaysia: Malayan Banking Berhad Banking 1.2%
- --------------------------------------------------------------------------------
Mexico: Telefonos de Mexico Telecommunications 1.0%
- --------------------------------------------------------------------------------
Brazil: Telebras-ADR Telecommunications 0.9%
- --------------------------------------------------------------------------------
Germany: VEBA AG Utility 0.8%
- --------------------------------------------------------------------------------
France: Total Energy 0.6%
- --------------------------------------------------------------------------------
Italy: Credito Italiano Banking 0.5%
- --------------------------------------------------------------------------------
Spain: Banco Popular Esp. Miscellaneous 0.5%
- --------------------------------------------------------------------------------
India: Tata Eng. & Loco. Co.-GDR Automotives 0.4%
- --------------------------------------------------------------------------------
</TABLE>
Investment Breakdown
[GRAPHIC APPEARS HERE] INFORMATION DEPICTED IN THE GRAPHIC IS SET FORTH IN THE
TABLE BELOW:
<TABLE>
<S> <C>
Common Stock and Warrants 96%
Cash Equivalents 4%
</TABLE>
Cash Equivalents include short-term instruments, cash and other assets less
liabilities.
<TABLE>
<CAPTION>
Regional Breakdown
- --------------------------------------------------------------------------------
<S> <C>
Europe 31%
- --------------------------------------------------------------------------------
Japan 30%
- --------------------------------------------------------------------------------
Pacific Basin 17%
- --------------------------------------------------------------------------------
The Americas 14%
- --------------------------------------------------------------------------------
Mid-East/Africa 5%
- --------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
After a slow fourth quarter of 1995, the PIMCO Advisors International Fund
significantly participated in the positive turn in the international equity
markets with a strong performance in the first three months of 1996. For the
six-month period ended March 31, 1996, however, the Fund slightly underperformed
the Lipper International Fund Index, with the A shares rising 6.1% and the B and
C shares climbing 5.8 and 5.7% respectively.
Japan continued to be the largest country holding for the Fund,
representing a 30% weighting of the portfolio. These stocks aided the
performance of the International Fund, as the Japanese market maintained its
recovery process that began in the third quarter of 1995. Reasons for the
sustained rebound were increasing earnings results and expanding investment by
foreign institutions. As a result of these positive factors, the balance of
corporate earningsforecasts for Japanese companies were upgrades for the first
time since 1989. The manager believes the upbeat trend will continue in Japan.
This is based on proposed financial assistance by the Japanese government to
banks, increasing foreign investment, and the possible shift of Japanese
institutional and retail assets from cash into stocks.
Other developed nations in the Pacific Basin, including Singapore and Hong
Kong, performed strongly during the last six months. After a period of
underperformance, these markets were assisted by economic growth, low inflation,
and budget surpluses.
The Fund's position in Europe was underweighted relative to the Europe Asia
and Far East (EAFE) Index, due mainly to poor economic performance from Germany
over the past two quarters. Europe tends to rely on Germany as a locomotive for
expansion, and as a result of the country's negative growth, earnings forecasts
across the Continent were marked down. The United Kingdom represented the
largest country holding in Europe, with a 10% weighting in the portfolio.
Performance for the emerging stock markets within the Fund was positive in
recent months, driven mainly by rising share prices in Asia and Europe. The
Indonesian stock market benefited from the return of foreign investors, while
the continuance of Turkey's long-term reform program and pro-Western attitude
drove that country's stock market up substantially. One underperforming emerging
market was Latin America, where investors remained pessimistic about the
region's economic future.
The long-term reasons for international investing, according to the
manager, still remain intact. Exposure to developed and emerging markets outside
of the United States will continue to create a more diversified portfolio,
which, Blairlogie feels, is important when considering the potential growth of
the global economy in the future.
Semi-Annual Report See accompanying notes/31
<PAGE>
PIMCO Advisors
International Fund
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Value
($ in thousands) Shares (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
- --------------------------------------------------------------------------------
Common Stocks--94.2%
- --------------------------------------------------------------------------------
Argentina--0.9%2
Banco Frances del Rio de la Plata SA 24,250 $ 221
Buenos Aires Embotelladora, SA ADR 4,800 80
Compania Naviera Perez Company SA ADR 41,810 476
IRSA, Inveriones Y Representaciones ADR 4,252 120
Molinos Rio de la Plata 12,300 115
Siderca SA Class A 109,167 110
Telefonica de Argentina ADR 12,940 332
YPF Sociedad Anonima ADR 39,120 787
--------
Total Argentina
(Cost $2,075) 2,241
--------
Australia--1.5%
Amcor Ltd. 44,900 292
Boral Ltd. 127,300 334
Broken Hill Proprietary Co. Ltd. 52,900 754
Comalco Ltd. 68,800 393
David Jones Ltd. (b) 118,800 184
News Corp. Ltd. 63,200 370
Southcorp Holdings Ltd. 68,900 180
Western Mining Corp. Holding Ltd. 65,000 430
Westpac Banking Corp. Ltd. 112,600 530
--------
Total Australia
(Cost $3,387) 3,467
--------
Brazil--2.7%
Brasmotor SA 893,000 231
Centrais Electricas Brasileras SA-Electrobras 3,951,500 1,080
Compania Energetica de Minas Gerais 18,540,000 520
Compania Paulista de Forcae Luz 10,128,000 615
Lojas Americanas SA (b) 23,013,000 555
Souza Cruz SA 93,000 700
Telebras SA ADR 41,188 2,049
Usinas Siderurgicas de Minas Gerais
SA-USIMINAS 585,540,000 646
--------
Total Brazil
(Cost $6,194) 6,396
--------
Chile--2.4%
Banco Osorno y La Union ADR 41,000 636
Compania Telecomunicacion Chile ADR 17,100 1,449
Compania Cervecderias Unidas SA 13,500 287
Empresa Nacional Electridad SA ADR 44,100 849
Enersis SA ADR 54,000 1,526
Madeco SA ADR 14,700 367
Maderas y Sinteticos Sociedad Anonima
SA ADR 16,100 286
Sociedad Quimica Y Minera de Chile ADR 5,730 299
--------
Total Chile
(Cost $5,753) 5,699
--------
Colombia--1.2%
Banco Industrial Colombiano 97,500 1,804
Cementos Diamante SA ADR 50,500 999
--------
Total Colombia
(Cost $2,683) 2,803
--------
Finland--0.8%
Finnair Oy 35,000 285
Nokia Ab-A (b) 8,920 308
Rauma Oy (b) 9,100 161
Repola Oy 12,100 240
Valmet Corp. 10,300 237
Werner Soderstrom Osakeyhtio, Class B 30,600 558
--------
Total Finland
(Cost $1,795) 1,789
--------
France--6.0%
Alcatel Alsthom 9,830 912
AXA 21,268 1,307
Carrefour SA 1,730 1,267
Club Mediterranee 12,624 1,229
Compagnie de Suez SA 24,500 951
Credit Local de France 10,445 818
Compagnie Generale des Eaux 9,270 948
PSA Peugeot 6,700 1,022
Roussel-Uclaf 5,535 1,209
Salomon SA 1,800 1,158
Schneider SA 23,525 1,042
Total SA, Class B 19,450 1,313
Usinor Sacilor (b) 67,700 1,107
--------
Total France
(Cost $12,059) 14,283
--------
Germany--5.9%
Adidas AG 10,008 739
Allianz AG Holding 466 865
Bayer AG 4,705 1,595
Daimler-Benz AG 1,300 707
Deutsche Bank AG 18,300 921
Karstadt AG 1,900 714
M.A.N. AG 2,860 792
Mannesmann AG 5,000 1,827
Merck KGaA (b) 20,117 867
Muenchener Rueckverscherungs-
Gesellschaft AG 223 466
Siemens AG 2,670 1,465
VEBA AG 40,800 1,984
Volkswagen AG 3,240 1,132
--------
Total Germany
(Cost $12,397) 14,074
--------
Hong Kong--1.6%
Cheung Kong (Holdings) Ltd. 66,000 465
Citic Pacific Ltd. 61,000 237
Hang Seng Bank 23,900 244
Hong Kong Telecommunications Ltd. 117,600 235
Hutchison Whampoa Ltd. 110,130 695
Sun Hung Kai Properties Ltd. 123,182 1,103
Swire Pacific Ltd., Class A 74,948 659
Television Broadcasts Ltd. 62,000 228
--------
Total Hong Kong
(Cost $2,928) 3,866
--------
</TABLE>
32/PIMCO Advisors Funds See accompanying notes
<PAGE>
PIMCO Advisors
International Fund
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Value
($ in thousands) Shares (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
India--3.0%
Bajaj Auto Ltd. GDR 22,600 $ 703
Century Textiles and Industries Ltd. GDR (b) 1,200 200
East India Hotels Ltd. GDR 37,800 832
Grasim Industries Ltd. GDR 24,200 421
Hindalco Industries Ltd. GDR (b) 27,350 1,012
Indian Aluminium Co. Ltd. GDR 9,900 72
Indian Rayon and Industries Ltd. GDR 55,700 849
Larsen & Toubro Ltd. GDR 46,500 732
Raymond Ltd. 17,900 360
Reliance Industries Ltd. GDS 59,500 863
Tata Engineering & Locomotive Co. Ltd. GDR 71,960 1,133
--------
Total India
(Cost $6,863) 7,177
--------
Indonesia--0.0%
PT Indah Kiat Pulp & Paper Corp. 354 0
--------
Total Indonesia
(Cost $0) 0
--------
Israel--1.6%
Africa Israel Investments Ltd. (b) 367 372
Blue Square Chain Stores (b) 66,600 480
First International Bank of Israel Ltd. (b) 3,000 342
Koor Industries Ltd. (b) 7,000 666
Osem Investment Ltd. 86,000 518
Tadiran Ltd. 166,600 611
Tadiran Telecommunications Ltd. 23,300 350
Teva Pharmaceutical Industries Ltd. 1,210 464
--------
Total Israel
(Cost $4,044) 3,803
--------
Italy--3.0%
Benetton Group SpA 33,000 377
Credito Italiano 1,113,000 1,191
Edison SpA 117,000 588
Ente Nazionale Idrocarburi SpA (b) 197,500 717
Parmalat Finanziaria SpA 637,000 585
Riunione Adriatica di Sicurta SpA 90,200 879
Sasib SpA 204,000 405
STET-Societa Finanziaria Telefonica 369,000 1,024
Telecom Italia SpA 446,000 706
Unicem SpA 110,500 697
--------
Total Italy
(Cost $7,599) 7,169
--------
Japan--29.8%
Daiwa Securities Co. Ltd. 314,000 $ 4,792
Fujisawa Pharmaceutical 344,000 3,318
Hitachi Ltd. 289,000 2,814
Marubeni Corp. 507,000 2,844
Matsushita Electric Works 293,000 3,155
Mitsubishi Chemical Corp. 794,000 4,200
Mitsui Engineering & Shipbuilding 1,387,000 4,117
Mitsui Fudosan Co. 295,000 3,839
Mitsui O.S.K. Lines Ltd (b) 645,000 2,186
Nippon Oil Co. Ltd. 627,000 4,010
Nippon Telegraph & Telephone Corp. 471 3,449
NKK Corp. (b) 1,233,000 3,567
Obayashi Corp. 418,000 3,593
Sony Corp. 33,000 1,974
Sumitomo Bank 225,000 4,551
Sumitomo Metal Mining Co. 397,000 3,829
Sumitomo Trust & Banking 300,000 4,129
Tokyo Electric Power 109,500 2,809
Tokyo Steel Manufacturing 147,000 2,670
Tokyu Corp. 459,000 3,503
UBE Industries Ltd. 355,000 1,376
--------
Total Japan
(Cost $67,354) 70,725
--------
Malaysia--3.6%
Edran Otomobil Nasional Berhad 122,000 1,095
Land & General Holdings Berhad 140,500 372
Malayan Banking Berhad 294,000 2,744
Metacorp Berhad 304,000 932
R.J. Reynolds Berhad 248,000 687
Road Builder (M) Holdings Berhad 528,000 2,026
Sungei Way Holdings Berhad 179,000 779
--------
Total Malaysia
(Cost $7,379) 8,635
--------
Mexico--3.9%
Apasco SA de CV 142,900 730
Cifra SA de CV (b) 645,300 859
Controladora Comercial Mexicana SA de
CV, Series B (b) 598,000 498
Desc SA de CV, Series B 67,200 305
Empresas ICA Sociedad Controladora
SA de CV 50,910 667
Fomento Economico Mexicano SA de
CV, Series B 166,000 478
Grupo Financial Banamex AC (b) 277,040 536
Grupo Mexico SA, Series B 123,700 443
Grupo Modelo SA de CV 199,300 925
Grupo Televisa SA ADR 18,100 450
Industrias Penoles SA 101,500 433
Kimberly Clark de Mexico 33,400 637
Telefonos de Mexico 66,820 2,197
Transportacion Maritima Mexicana SA de CV 750 6
Tubos de Acero de Mexico SA (b) 22,900 181
--------
Total Mexico
(Cost $7,989) 9,345
--------
</TABLE>
Semi-Annual Report See accompanying notes/33
<PAGE>
PIMCO Advisors
International Fund
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Value
($ in thousands) Shares (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
Netherlands--2.1%
ABN AMRO Holdings NV 13,900 $ 691
Koninklijke Ahold NV 10,367 500
Elsevier NV 26,417 404
Fortis Amev NV 5,196 366
KLM Royal Dutch Air Lines NV 12,790 445
Koninklijke Ptt Nederland NV 11,240 442
Philips Electronic NV 11,250 409
Polygram NV 6,492 393
Royal Dutch Petroleum Co. 5,700 807
Verenigde Nederlandse Uitgevbedri
Verigd Bezit 26,000 433
--------
Total Netherlands
(Cost $3,866) 4,890
--------
Norway--0.7%
Aker AS, Series A 9,130 169
Christiania Bank OG Kreditkasse 69,700 162
Den Norske Bank AS 53,200 165
Hafslund Nycomed, Class B 6,400 175
Leif Hoegh & Co. AS 8,400 121
Norsk Hydro AS 7,800 340
Norske Skogindustrier AS, Series A 6,600 201
Orkla Borregaard AS, Class B 5,290 231
Sparebanken NOR (Union Bank of Norway) 4,970 136
--------
Total Norway
(Cost $1,601) 1,700
--------
Peru--0.9%
Cerveceria Backus & Johnston SA, T Shares 141,000 177
Compania de Minas Buenaventura SA 25,568 188
CPT Telefonica del Peru S.A 604,500 1,207
Credicorp Ltd. 17,222 310
Minsur S.A. Trabajo 10,043 79
Southern Peru Copper Corp., Series T 17,700 68
--------
Total Peru
(Cost $2,166) 2,029
--------
Philippines--1.5%
Ayala Corp., Series B 365,500 531
Metropolitan Bank & Trust Co. 33,700 837
Petron Corp. 774,700 333
Philippine Long Distance Telephone Co. 14,500 772
San Miguel Corp., Class B 185,400 623
SM Prime Holdings, Inc. 1,548,000 461
--------
Total Philippines
(Cost $3,723) 3,557
--------
Poland--0.9%
Bank Gdanski SA (b) 25,880 284
Bank Rozwoju Eksportu SA 25,800 549
Debica SA 17,627 430
Elektrim Spolka Akcyjna SA 106,390 630
Polifarb-Cieszyn SA 61,778 323
--------
Total Poland
(Cost $1,610) 2,216
Portugal--1.1%
Banco Commercial Portugues 24,760 340
Cimentos de Portugal SA 17,870 337
Investec-Consultoria Internacional (b) 18,000 425
Estabelecimentos Jeronimo Martins & Filho 5,790 430
Portugal Telecom SA (b) 27,190 614
Sonae Investimentos Sociedade Gestora de
Participacoes Sociais SA 14,730 352
--------
Total Portugal
(Cost $2,383) 2,498
--------
Singapore--1.9%
Comfort Group Ltd. 455,000 420
Cycle & Carriage Ltd. 37,000 426
DBS Land 131,000 503
Hong Leong Finance Ltd. 95,000 412
Keppel Corp. Ltd. 51,000 464
Oversea-Chinese Banking Corp. Ltd. 71,000 953
Overseas Union Bank Ltd. 129,000 916
Straits Steamship Land Ltd. 142,000 478
--------
Total Singapore
(Cost $4,615) 4,572
--------
South Africa--0.9%
Amalgamated Banks of South Africa 60,200 318
Anglo American Gold Investment Co. Ltd. 2,700 278
Barlow Ltd. 24,300 312
C.G. Smith Ltd. 46,400 297
De Beers Centenary AG 10,590 341
Liberty Life Association of Africa Ltd. 7,300 229
Norwich Holdings Ltd. (b) 109,900 199
South African Breweries Ltd. 6,300 200
--------
Total South Africa
(Cost $1,645) 2,174
--------
South Korea--1.7%
Korea Fund (The), Inc. 85,625 1,809
Pohang Iron & Steel Co. Ltd. 6,470 157
Seoul Access Trust IDR (b) 120 2,010
--------
Total South Korea
(Cost $4,073) 3,976
--------
Spain--2.5%
Aumur-Autopistas del Mare Nostrum SA 51,300 616
Banco Popular Espanol SA 5,925 1,023
Banco Santander SA 17,000 809
Empresa Nacional de Electridad SA 14,463 828
Iberdrola I SA 105,103 970
Repsol SA 26,025 981
Telefonica de Espana 47,000 746
--------
Total Spain
(Cost $5,013) 5,973
--------
</TABLE>
34/PIMCO Advisors Funds See accompanying notes
<PAGE>
PIMCO Advisors
International Fund
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Value
($ in thousands) Shares (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
Thailand--1.9%
Advanced Info Service PCL 38,100 $ 731
Bangkok Bank Co. Ltd. 90,000 1,213
Industrial Finance Corp. of Thailand (b) 181,900 664
Krung Thai Bank Ltd. 105,700 499
Land & House Public Co. Ltd. 12,400 204
Phatra Thanakit Co. Ltd. 51,000 469
Thai Farmers Bank Co. Ltd. 66,800 784
--------
Total Thailand
(Cost $3,773) 4,564
--------
Turkey--2.0%
Adana Cimento Sanayii, Class A 2,680,800 492
Akal Tekstil Sanayii 3,271,500 425
Arcelik AS 3,553,000 471
Bagfas Bandirma Gubre-Fabrikalari AS 1,219,000 421
Brisa Bridgestone Sabanci Lastik San Ve Tic AS 1,196,000 430
Demirbank TAS 9,317,000 361
Erciyas Biracilik ve Malt Sanayii 446,000 271
Eregli Demir ve Celik Fabrikalari TAS 3,457,000 405
Migros Turk 523,200 561
Netas Telekomunik 1,179,000 366
Turk Sise ve Cam Fabrikalari AS 2,152,000 433
--------
Total Turkey
(Cost $5,349) 4,636
--------
United Kingdom--8.0%
Abbey National PLC 147,000 1,264
Barclays PLC 101,000 1,121
Boots Co. PLC 121,000 1,106
British Airport Authority PLC 133,000 1,086
British Telecommunications PLC 164,000 925
Commercial Union PLC 112,000 973
Granada Group PLC 108,000 1,236
Lloyd's Bank PLC 273,696 1,306
Lloyd's TSB Group PLC 10,000 48
Pilkington PLC 325,550 1,039
Scottish & Newcastle PLC 90,000 879
Shell Transport and Trading Co. 74,600 985
Tesco PLC 271,000 1,102
Tomkins PLC 272,000 1,050
Wolseley PLC 152,000 1,019
Zeneca Group PLC 185,800 3,857
--------
Total United Kingdom
(Cost $17,252) 18,996
--------
Venezuela--0.2%
Mavesa SA ADR 81,200 337
--------
Total Venezuela
(Cost $436) 337
--------
Total Common Stocks
(Cost $208,004) 223,590
--------
- --------------------------------------------------------------------------------
Preferred Stock--1.6%
- --------------------------------------------------------------------------------
Aracruz Celulose SA, Class B 159,000 254
Aracruz Celulose SA, Class B 269,795 432
Banco Bradesco SA 105,630,000 1,107
Compania Vale do Rio Doce 6,671,000 1,047
Paranapanema SA 21,305,000 276
Petroleo Brasileiro SA-Petrobras 6,038,000 721
Telebras SA 605,000 30
--------
Total Preferred Stock
(Cost $3,790) 3,867
--------
Total Investments (a)--95.8%
(Cost $211,794) 227,457
--------
Other Assets and Liabilities, Net--4.2% 9,946
--------
Total Net Assets--100.0% $237,403
========
</TABLE>
Notes to Portfolio of Investments ($ in thousands):
(a) The cost of investments for federal income tax purposes is $211,794. At
March 31, 1996, net unrealized appreciation was $15,663. This consisted of
aggregate gross unrealized appreciation for all investments on which there was
an excess of market value over tax cost of $22,966 and aggregate gross
unrealized depreciation of all investments on which there was an excess of tax
cost over market value of $7,303.
(b) Non-income producing security.
Either all or a portion of the foreign currency held at Mach 31, 1996 has been
segregated with the custodian to cover futures contracts.
Semi-Annual Report See accompanying notes/35
<PAGE>
- --------------------------------------------------------------------------------
PIMCO Advisors
Precious Metals Fund March 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Objective: Portfolio: Total Net Assets: Number of Securities Fund Manager:
Capital appreciation. Primarily stocks of $55 million in the Portfolio: Van Eck Associates
companies which extract, 55 (not including short-term (an independent sub-advisor not
process, distribute or instruments) owned by PIMCO Advisors L.P.)
market precious metals.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE*
- --------------------------------------------------------------------------------
Average Annual Total Return For periods ended 3/31/96
<TABLE>
<CAPTION>
A Shares B Shares C Shares Lipper
(Incep. 2/1/91) (Incep. 6/15/95) (Incep. 10/10/88) Phil. Gold & Gold Fund
Adjusted Adjusted Adjusted Silver Index Average
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C>
1 year 19.5% 12.9% -- -- 17.7% 17.9% 29.7%
3 years 18.4% 16.2% -- -- 17.6% 18.3% 17.1%
5 years 12.5% 11.3% -- -- 11.7% 11.3% 11.3%
Inception 13.7% 12.5% 15.9% 10.9% 4.1% -- --
</TABLE>
* The adjusted returns above include the effects of applicable sales charges.
B share returns are unannualized. The chart to the right reflects the
performance of PIMCO Advisors Precious Metals Fund C through March 31,
1996. The performance of Precious Metals Fund A and B will be greater or
less than the line shown based on differences in inception dates, fees, and
sales charges. Past performance is not an indication of future results. See
page 54 for Footnotes, which should be read in connection with this
material.
[GRAPHIC APPEARS HERE] GRAPHIC DEPICTS THE VALUE OF $10,000 INVESTED SINCE
INCEPTION THROUGH 3/31/96 IN THE FUND'S C CLASS OF SHARES
AND THE PHIL-GOLD & SILVER INDEX WOULD BE $13,466 AND
$15,702; RESPECTIVELY.
PRECIOUS METALS PHIL GOLD &
MONTH C SILVER INDEX
- --------------- --------------- -------------
09/30/88 10000 10000
09/30/89 9871 11338
09/30/90 9411 11834
09/30/91 7469 8611
09/30/92 7449 8788
09/30/93 10122 11372
09/30/94 13766 14443
09/30/95 11914 13567
3/31/96 13466 15702
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Top 10 Holdings
Company % of Net Assets
- --------------------------------------------------------------------------------
<S> <C>
Newmont Mining Corp. 6.1%
- --------------------------------------------------------------------------------
Placer Dome 4.7%
- --------------------------------------------------------------------------------
Barrick Gold Corp. 4.7%
- --------------------------------------------------------------------------------
Homestake Mining Co. 4.2%
- --------------------------------------------------------------------------------
Santa Fe Pacific Gold Corp. 3.6%
- --------------------------------------------------------------------------------
Plutonic Resources Ltd. 3.5%
- --------------------------------------------------------------------------------
Hemlo Gold Mines 3.3%
- --------------------------------------------------------------------------------
Sons of Gwalia N.L. Ord 3.2%
- --------------------------------------------------------------------------------
Newcrest Mining Ltd. 2.6%
- --------------------------------------------------------------------------------
Rangold & Exploration 2.2%
- --------------------------------------------------------------------------------
Top Ten Total 38.1%
</TABLE>
Investment Breakdown
[GRAPHIC APPEARS HERE] INFORMATION DEPICTED IN THE GRAPHIC IS SET FORTH IN THE
TABLE BELOW:
<TABLE>
<S> <C>
Common and Preferred Stocks 95%
Cash Equivalents 5%
</TABLE>
Cash Equivalents include short-term instruments, cash and other assets less
liabilities.
<TABLE>
<CAPTION>
Geographic Breakdown
- --------------------------------------------------------------------------------
<S> <C>
United States 28%
- --------------------------------------------------------------------------------
Canada 26%
- --------------------------------------------------------------------------------
South Africa 26%
- --------------------------------------------------------------------------------
Australia 20%
- --------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
The PIMCO Advisors Precious Metals Fund, despite an A share return of 13.3% and
a B and C share return of 13.0%, underperformed the Lipper Gold-oriented Fund
Average for the six-month period ended March 31, 1996. However, for the three-
and five-year periods ended March 31, the Fund's annualized return of 18.4% and
12.5%, respectively, outperformed its Lipper Average for both time periods.
Since the Fund primarily invests in the stocks of gold mining companies,
its performance is often tied to the movement of the price of gold. After
trading in the $380 - $390 an ounce range for most of 1995, gold rose to $415 in
the beginning of February, its highest price since July, 1993. It closed the
six-month period ended March 31 at $398 an ounce. This overall rise in the price
of gold was a key factor for the positive return experienced by the Fund.
Following a September labor agreement that improved mining efficiencies,
South African gold mining shares (which as of March 31, made up 22% of the
Fund's portfolio) rose during the fourth quarter of 1995, and most of the first
quarter of 1996. The Fund benefited from this performance during that time
period, but subsequently declined from February 2 through March 31 as the price
of gold underwent a normal correction, and the South African government
appointed a new Finance Minister. The manager believes this was a minor setback,
and that lower costs due to the improved efficiencies, and a dedicated Finance
Minister, should improve gold revenues.
Successful exploration in both North American and Australian mines, which
accounted for 60% and 18%, respectively, of the portfolio, also aided the
performance of the Fund. Examples of top performing stocks from these regions
were Barrick Gold Corp., Newmont Mining, and Placer Dome. Continually improving
development programs should positively contribute to the future performance
results of mining companies within these two areas.
The manager believes there are several factors that support the case for
higher gold prices in the future. These include: gold mining shares
outperforming the price of gold and the possibility of increased inflation as
evidenced by global deficits becoming more commonplace, decreasing unemployment
rates, and continually rising corporate profits. Since the price of gold often
rallies during periods of rising inflation, the manager believes precious metals
securities can play an important part in a more diversified portfolio.
36/PIMCO Advisors Funds See accompanying notes
<PAGE>
PIMCO Advisors
Precious Metals Fund
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Principal Value
($ in thousands) Amount (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury Obligations--4.2%
- --------------------------------------------------------------------------------
U.S. Treasury Bills, 5.100%, 4/4/96-4/11/96 $ 2,300 $ 2,297
--------
Total U.S. Treasury Obligations
(Cost $2,297) 2,297
--------
<CAPTION>
Shares
- --------------------------------------------------------------------------------
Common Stocks--94.2%
- --------------------------------------------------------------------------------
Australia--19.9%
Acacia Resources Ltd. (b) 100,000 239
Australian Resources Ltd. 500,000 462
Delta Gold N.L. Corp. 200,000 497
Eagle Mining Corp. (b) 280,000 613
Emperor Mines Ltd. 200,000 488
Gold Mines of Kalgoorlie Ltd. 516,600 562
Great Central Mines N.L. (b) 101,000 288
Herald Resources Ltd. 205,000 241
Kidston Gold Mines Ltd. 40,000 63
Macraes Mining Co. Ltd. 130,000 256
Newcrest Mining Ltd. 322,500 1,443
North Flinders Mines Ltd. 100,000 610
Placer Pacific Ltd. 330,000 620
Plutonic Resources Ltd. 340,000 1,915
Posgold Ltd. 30,000 81
Resolute Samantha Ltd. 200,000 524
Sons of Gwalia Ltd. 290,000 1,747
St. Barbara Mines Ltd. 600,000 352
--------
Total Australia
(Cost $7,408) 11,001
--------
Canada--26.0%
Agnico-Eagle Mines Ltd. 60,000 1,072
Barrick Gold Corp. 85,000 2,582
Cambior, Inc. 40,000 543
Echo Bay Mines Ltd. 64,999 877
Goldcorp, Inc., Class A 25,000 497
Hemlo Gold Mines, Inc. 130,000 1,804
Iamgold International African Mining (b) 100,000 422
Miramar Mining Corp. (b) 100,000 655
Namibian Minerals Corp. 200,000 771
Placer Dome, Inc. 90,000 2,599
Richmont Mines, Inc. (b) 150,000 468
Royal Oak Mines, Inc. (b) 100,000 419
TVX Gold, Inc. (b) 130,000 1,170
Viceroy Resources Corp. (b) 75,000 475
--------
Total Canada
(Cost $11,297) 14,354
--------
Ghana--0.9%
Ashanti Goldfields Co. Ltd. GDR 20,000 500
--------
Total Ghana
(Cost $409) 500
--------
South Africa--23.9%
Beatrix Mines Ltd. ADR 150,000 $ 1,216
Deelkraal Gold Mining ADR (b) 300,000 339
Driefontein Consolidated Ltd. ADR 110,000 1,746
Elandsrand Gold Mining Co. Ltd. ADR 210,000 1,267
Free State Consolidated Gold Mines Ltd. ADR 140,000 1,330
Gold Fields of South Africa Ltd. ADR 35,000 1,199
Kloof Gold Mining Co. ADR 140,000 1,785
Randgold & Exploration Co. Ltd. 290,000 1,239
St. Helena Gold Mines Ltd. ADR 105,000 774
Vaal Reefs Exploration & Mining Co. Ltd. ADR 100,000 956
Western Deep Levels Ltd. ADR 30,000 1,376
--------
Total South Africa
(Cost $11,053) 13,227
--------
United Kingdom--0.2%
Reunion Mining PLC (b) 100,000 111
--------
Total United Kingdom
(Cost $116) 111
--------
United States--23.3%
Alta Gold Co. (b) 100,000 450
Battle Mountain Gold Co. 80,000 780
Coeur D'Alene Mines Corp. 30,000 611
Firstmiss Gold, Inc. (b) 26,000 715
Forest Oil Corp. (b) 70,000 866
Homestake Mining Co. 120,000 2,325
Newmont Mining Corp. 60,000 3,398
Pegasus Gold, Inc. 80,000 1,170
Santa Fe Pacific Gold Corp. 125,000 2,000
Stillwater Mining Co. (b) 25,000 531
--------
Total United States
(Cost $11,412) 12,846
--------
Total Common Stocks
(Cost $41,695) 52,039
--------
- --------------------------------------------------------------------------------
Convertible Preferred Stocks--0.7%
- --------------------------------------------------------------------------------
Durban Roodeport, 8.000%, 12/31/49 41,961 390
--------
Total Convertible Preferred Stocks
(Cost $276) 390
--------
<CAPTION>
Contracts
- --------------------------------------------------------------------------------
Purchased Call Options--0.3%
- --------------------------------------------------------------------------------
Durban Roodeport, expiring
December `96 @ 30 41,961 190
--------
Total Purchased Call Options
(Cost $64) 190
--------
Total Investments (a)--99.4%
(Cost $44,332) 54,916
--------
Other Assets and Liabilities, Net--0.6% 354
--------
Total Net Assets--100.0% $ 55,270
========
</TABLE>
Notes to Portfolio of Investments ($ in thousands):
(a) The cost of investments for federal income tax purposes is $44,332. At March
31, 1996, net unrealized appreciation was $10,584. This consisted of aggregate
gross unrealized appreciation for all investments on which there was an excess
of market value over tax cost of $12,217 and aggregate gross unrealized
depreciation of all investments on which there was an excess of tax cost over
market value of $1,633.
(b) Non-income producing security.
Semi-Annual Report See accompanying notes/37
<PAGE>
- --------------------------------------------------------------------------------
PIMCO Advisors
Global Income Fund March 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Objective: Portfolio: Total Net Assets: Number of Securities PIMCO Advisors
Maximum total return, Primarily investment $11 million in the Portfolio: Institutional Manager:
consistent with grade U.S. and foreign 31 (not including short-term Pacific Investment
preservation of capital. bonds. instruments) Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE*
- --------------------------------------------------------------------------------
Total Return For periods ended 3/31/96
<TABLE>
<CAPTION>
A Shares B Shares C Shares
(Incep. 10/2/95) (Incep. 10/2/95) (Incep. 10/2/95)
Adjusted Adjusted Adjusted
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Inception 6.9% 1.8% 6.8% 1.8% 5.8%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* The adjusted returns above include the effects of applicable sales charges.
The chart to the right reflects the performance of the PIMCO Advisors
Global Income Fund A, B and C since inception through March 31, 1996. See
page 54 for Footnotes, which should be read in connection with this
material.
[GRAPHIC APPEARS HERE] GRAPHIC DEPICTS THE VALUE OF $10,000 INVESTED SINCE
INCEPTION THROUGH 3/31/96 IN THE FUNDS A, B AND C CLASSES
OF SHARES AND THE SB CH WOLRD GOVT INDEX WOULD BE WORTH
$10,180; $10,183; $10,583 AND $10,405; RESPECTIVELY.
SB CH WORLD
MONTH GLOBAL A GLOBAL B GLOBAL C GOVT INDEX
- ------------- -------- -------- -------- -----------
09/30/95 9525 10000 10000 10000
12/31/95 10163 10672 10672 10420
03/31/96 10180 10583 10583 10405
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Top 10 Countries
- --------------------------------------------------------------------------------
<C> <C>
1. U.S. 6. Sweden
- --------------------------------------------------------------------------------
2. Germany 7. Spain
- --------------------------------------------------------------------------------
3. Canada 8. Netherlands
- --------------------------------------------------------------------------------
4. Finland 9. Denmark
- --------------------------------------------------------------------------------
5. U.K. 10. New Zealand
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Maturity Profile
- --------------------------------------------------------------------------------
<C> <C>
1-5 years 37%
- --------------------------------------------------------------------------------
6-10 years 41%
- --------------------------------------------------------------------------------
11-20 years 21%
- --------------------------------------------------------------------------------
21-30 years 1%
- --------------------------------------------------------------------------------
Average Maturity 8.2 years
- --------------------------------------------------------------------------------
Duration 5.5 years
- --------------------------------------------------------------------------------
</TABLE>
Quality Breakdown
[GRAPHIC APPEARS HERE] INFORMATION DEPICTED IN THE GRAPHIC IS SET FORTH IN THE
TABLE BELOW:
<TABLE>
<S> <C>
AAA 92%
AA 3%
A 3%
BB 2%
</TABLE>
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
On February 1, the PIMCO Advisors Global Income Fund was officially launched to
the public. The Fund actually commenced operations on October 2, 1995, and since
this inception, through March 31, 1996, the Class A shares rose 6.9%, while the
B and C shares posted a 6.8% return, outperforming the Salomon Brothers
(currency hedged) World Government Index for that period.
The Global Income Fund seeks maximum total return, consistent with
preservation of capital by investing primarily in high quality U.S. and foreign
bonds, with an average duration of 3 - 6 years. The manager believes that a high
quality portfolio provides a relatively more conservative investment than a
global bond fund that concentrates on higher-yielding, lower-rated securities.
Pacific Investment Management Company, a PIMCO Advisors institutional investment
firm with over $76 billion in assets under management, is the manager of the
Fund.
According to the Salomon Brothers World Government Bond Index, over half of
the world's fixed-income securities are issued outside the U.S. Without
considering opportunities in the foreign bond markets, an investor's potential
return could be limited. That has been evident since the inception of the Fund.
While some bond markets around the world were hurt by fears that economic growth
would pick up in the U.S., other markets outperformed the U.S. because their own
domestic fundamentals point to slow growth and in some cases outright recession.
Bonds have historically performed well in periods of slow growth and low
inflation. The search for countries with these attributes resulted in the Fund's
49% weighting in Europe, where near recessionary conditions existed in greater
frequency relative to other regions of the world. Examples of countries with low
inflation and slow growth were Germany, France, Italy, Spain, and Sweden.
Germany was a key allocation for the Fund, due to its negative period of growth
in the fourth quarter, and inflation rate of only 1.4%.
The manager believes that interest rates will decline both in the United
States and many countries abroad over the course of the rest of the year. In
order to take advantage of this expected decrease, the Fund will target a
duration that is between .8 and 1.0 years over that of its comparative index.
The manager anticipates that Europe will remain a key element in the portfolio
due to its forecast for slow economic growth in the region. In particular,
Germany will likely be the main focus, due to its above-average yields and low
inflation.
38/PIMCO Advisors Funds See accompanying notes
<PAGE>
PIMCO Advisors
Global Income Fund
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Value
($ in thousands) Amount (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
- --------------------------------------------------------------------------------
Short-Term Notes--28.0%
- --------------------------------------------------------------------------------
Bellsouth Telecommunications, Inc., 5.250%,
5/10/96 $ 400 $ 398
Coca-Cola Co., 5.160%, 4/3/96 300 300
Duke Power Co., 5.230%, 4/12/96 400 399
Eli Lilly & Co., 5.240%, 6/17/96 300 296
Ford Motor Credit Co., 5.240%-5.250%,
4/8/96-5/10/96 400 399
General Electric Co., 5.320%, 4/23/96 300 299
Hewlett Packard Co., 5.090%, 4/26/96 200 199
Motorola, Inc., 5.170%, 4/2/96 200 200
Pitney Bowes Credit, Inc., 5.110%, 4/29/96 200 199
Wal-Mart Stores, 5.280%, 4/11/96 300 300
--------
Total Short-Term Notes
(Cost $2,989) 2,989
--------
- --------------------------------------------------------------------------------
Argentina--1.7%
- --------------------------------------------------------------------------------
Republic of Argentina, 6.312%, 3/31/05 (b) 248 178
--------
Total Argentina
(Cost $147) 178
--------
- --------------------------------------------------------------------------------
Belgium(d)--3.2%
- --------------------------------------------------------------------------------
Kingdom of Belgium, 9.000%, 3/28/03 BF 6,600 250
Kingdom of Belgium, 5.100%, 11/21/04 (b) 2,800 94
--------
Total Belgium
(Cost $344) 344
--------
- --------------------------------------------------------------------------------
Canada(d)--12.4%
- --------------------------------------------------------------------------------
Commonwealth of Canada, 7.500%-9.000%,
3/1/01-12/1/05 C$ 1,690 1,321
--------
Total Canada
(Cost $1,319) 1,321
--------
- --------------------------------------------------------------------------------
Denmark(d)--5.1%
- --------------------------------------------------------------------------------
Kingdom of Denmark, 8.000%, 5/15/03 (c) DK 1,740 322
Kingdom of Denmark, 8.000%, 3/15/06 (c) 1,200 218
--------
Total Denmark
(Cost $539) 540
--------
- --------------------------------------------------------------------------------
Finland(d)--9.1%
- --------------------------------------------------------------------------------
Republic of Finland, 9.500%-10.000%,
9/15/01-3/15/04 FM 4,000 972
--------
Total Finland
(Cost $994) 972
--------
- --------------------------------------------------------------------------------
France(d)--1.9%
- --------------------------------------------------------------------------------
Republic of France, 8.500%, 11/25/02 FF 900 201
--------
Total France
(Cost $196) 201
--------
- --------------------------------------------------------------------------------
Germany(d)--16.7%
- --------------------------------------------------------------------------------
German Unity Fund, 8.000%-8.750%,
7/20/00-1/21/02 DM 1,700 1,290
Republic of Germany, 6.250%-6.875%,
6/11/03-1/4/24 730 490
--------
Total Germany
(Cost $1,927) 1,780
--------
- --------------------------------------------------------------------------------
Ireland(d)--1.4%
- --------------------------------------------------------------------------------
Irish Gilt, 6.250%, 4/1/99 IP 100 $ 155
--------
Total Ireland
(Cost $156) 155
--------
- --------------------------------------------------------------------------------
Italy(d)--2.7%
- --------------------------------------------------------------------------------
Republic of Italy, 10.500%, 9/1/05 IL 460,000 291
--------
Total Italy
(Cost $294) 291
--------
- --------------------------------------------------------------------------------
Netherlands(d)--6.4%
- --------------------------------------------------------------------------------
Baden-Wuerttemberg L-Finance N.V.,
6.625%, 8/20/03 DM 200 138
Kingdom of Netherlands, 8.250%-9.000%,
5/15/00-2/15/07 DG 800 551
--------
Total Netherlands
(Cost $554) 689
--------
- --------------------------------------------------------------------------------
New Zealand(d)--4.9%
- --------------------------------------------------------------------------------
Commonwealth of New Zealand, 6.500%-
10.000%, 7/15/97-3/15/02 NZ$ 750 519
--------
Total New Zealand
(Cost $524) 519
--------
- --------------------------------------------------------------------------------
Spain(d)--7.3%
- --------------------------------------------------------------------------------
Kingdom of Spain, 10.300%, 6/15/02 (c) SP 28,000 234
Kingdom of Spain, 7.250%, 3/4/03 DM 300 214
Kingdom of Spain, 10.900%, 8/30/03 (c) SP 28,000 241
Kingdom of Spain, 10.000%, 2/28/05 11,000 90
--------
Total Spain
(Cost $773) 779
--------
- --------------------------------------------------------------------------------
Sweden(d)--7.6%
- --------------------------------------------------------------------------------
Kingdom of Sweden, 11.000%, 1/21/99 SK 5,000 816
--------
Total Sweden
(Cost $812) 816
--------
- --------------------------------------------------------------------------------
United Kingdom(d)--8.9%
- --------------------------------------------------------------------------------
United Kingdom Gilt, 6.000%, 8/10/99 (c) BP 650 954
--------
Total United Kingdom
(Cost $966) 954
--------
- --------------------------------------------------------------------------------
United States(d)--55.6%
- --------------------------------------------------------------------------------
U.S. Treasury Obligations--0.2%
U.S. Treasury Bill, 4.900%, 5/9/96 (e)
(Cost $20) $ 20 20
--------
U.S. Government Agency Obligations--49.6%
Federal Farm Credit Bank--5.6%
Federal Farm Credit Bank, 5.110%, 4/11/96 600 599
--------
Federal Home Loan Bank (FHLB)--2.8%
FHLB, 5.310%, 4/29/96 300 299
--------
Federal National Mortgage Association
(FNMA)--15.7%
FNMA, 5.120%, 4/3/96-4/15/96 800 799
FNMA, 6.299%, 8/1/29 (b) 864 872
--------
1,671
--------
</TABLE>
Semi-Annual Report See accompanying notes/39
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Principal Value
($ in thousands) Amount (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
Government National Mortgage
Association (GNMA)--17.1%
GNMA, 7.000%, 11/20/21-10/20/24 (b) $ 1,801 $ 1,823
--------
Student Loan Marketing Association
(SLMA)--8.4%
SLMA, 5.940%, 10/25/07 (b) 900 900
--------
Total U.S. Government Agency Obligations
(Cost $5,300) 5,292
--------
Corporate Bonds and Notes--5.8%
Dean Witter Discover, 5.586%, 2/1/99 (b) 250 250
Hewlett Packard Co., 5.625%, 11/20/00 DM 100 68
Tele-Communications, Inc., 6.144%,
4/1/02 (b) $ 300 300
--------
Total Corporate Bonds and Notes
(Cost $618) 618
--------
Total United States
(Cost $5,938) 5,930
- --------------------------------------------------------------------------------
Purchased OTC Call Options(d)--2.2%
- --------------------------------------------------------------------------------
Kingdom of Denmark 8.000%, 5/15/03,
expiring June `96 @ 91 DK 1,740 43
Kingdom of Denmark, 8.000%, 3/15/06,
expiring June `96 @ 90 1,200 28
Kingdom of Spain, 10.300%, 6/15/02,
expiring June `96 @ 85 SP 28 44
Kingdom of Spain, 10.900%, 8/30/03,
expiring June `96 @ 87.85 28 43
United Kingdom Gilt, 6.000%, 8/10/99,
expiring June '96 @ 86.50 BP 500 74
--------
Total Purchased OTC Call Options
(Cost $232) 232
--------
- --------------------------------------------------------------------------------
Purchased OTC Put Options(d)--0.0%
- --------------------------------------------------------------------------------
Italian Lira v. German Mark, expiring
April `96 @ 1,200 DM 100 0
Italian Lira v. Swiss Franc, expiring
April `96 @ 1,500 IL 150 0
--------
Total Purchased OTC Put Options
(Cost $0) 0
--------
Total Securities Owned (a)
(Cost $18,704) 18,690
--------
- --------------------------------------------------------------------------------
Outstanding Put Options Written(d)--0.0%
- --------------------------------------------------------------------------------
Italian Lira v. German Mark, expiring
April `96 @ 1,080 DM 100 0
Italian Lira v. Swiss Franc, expiring
April `96 @ 1,345.91 IL 135 0
--------
Total Outstanding Put Options Written
(Premiums Received $1) 0
--------
Total Investments,
Net of Outstanding Options Written--175.1%
(Cost $18,703) 18,690
--------
<CAPTION>
Value
($ in thousands) (Note 2)
- --------------------------------------------------------------------------------
Other Assets and Liabilities, Net--(75.1%) $ (8,022)
--------
Total Net Assets--100.0% $ 10,668
========
</TABLE>
Notes to Portfolio of Investments ($ in thousands):
(a) The cost of investments for federal income tax purposes is $18,704. At March
31, 1996, net unrealized depreciation was $14. This consisted of aggregate gross
unrealized appreciation for all investments on which there was an excess of
market value over tax cost of $67 and aggregate gross unrealized depreciation of
all investments on which there was an excess of tax cost over market value of
$81.
(b) Variable rate security.
(c) Security is subject to outstanding short sale commitment.
(d) Principal amount denoted in indicated currency:
BF--Belgian Franc
BP--British Pound
C$--Canadian Dollar
DG--Dutch Guilder
DK--Danish Krone
DM--German Mark
FF--French Franc
FM--Finnish Markka
IL--Italian LiraI
P--Irish Punt
NZ$--New Zealand Dollar
SK--Swedish Krona
SP--Spanish Peseta
(e) Either all or a portion of these securities has been segregated with the
custodian to cover futures contracts.
40/PIMCO Advisors Funds See accompanying notes
<PAGE>
- --------------------------------------------------------------------------------
PIMCO Advisors
High Income Fund March 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Objective: Portfolio: Total Net Assets: Number of Securities PIMCO Advisors
Maximum total return, Primarily high yield bonds. $215 million in the Portfolio: Institutional Manager:
consistent with 91 (not including short-term Pacific Investment
preservation of capital. instruments) Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE*
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Average Annual Total Return For periods ended 3/31/96
A Shares B Shares C Shares
(Incep. 2/6/91) (Incep. 5/22/95) (Incep. 2/24/84)
Adjusted Adjusted Adjusted
- --------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C>
1 year 15.2% 9.7% -- -- 13.3%
5 years 8.3% 7.3% -- -- 7.4%
10 years -- -- -- -- 6.6%
Inception 7.9% 6.9% 9.6% 4.6% 7.9%
</TABLE>
In November 1994, the High Income Fund changed its investment objective.
Therefore, longer-term comparisons with the Fund's new relevant indices are not
applicable.
* The adjusted returns above include the effects of applicable sales charges.
B share returns are unannualized. The chart to the right reflects the
performance of PIMCO Advisors High Income Fund C through March 31, 1996.
The performance of High Income Fund A and B will be greater or less than
the line shown based on differences in inception dates, fees, and sales
charges. Past performance is not an indication of future results. See page
54 for Footnotes, which should be read in connection with this material.
[GRAPHIC APPEARS HERE] THE GRAPHIC DEPICTS THE VALUE OF $10,000 INVESTED AT THE
FUND'S INCEPTION THROUGH 3/31/96 IN THE FUND'S C CLASS OF
SHARES, THE LEHMAN BB INT. INDEX AND THE 6 MONTH CD INDEX
OF $25,004; $40,259 AND $22,436; RESPECTIVELY.
HIGH INCOME LEHMAN BB 6 MO
MONTH C INT. INDEX CD INDEX
- ----------- ----------- ---------- --------
12/31/83 10000 10000 10000
09/30/84 10218 10523 10882
09/30/85 11952 13198 11645
09/30/86 13495 15903 12488
09/30/87 14296 16278 13324
09/30/88 15735 18869 14374
09/30/89 16719 21115 15757
09/30/90 17085 22319 17111
09/30/91 18529 25986 18284
09/30/92 20822 29817 19048
09/30/93 22785 33658 19692
09/30/94 21079 32415 20539
09/30/95 24929 39033 21835
03/31/96 25004 40259 22436
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
Sector Breakdown
[GRAPHIC APPEARS HERE] THE INFORMATION DEPICTED IN THE GRAPHIC IS SET FORTH IN
THE TABLE BELOW:
<TABLE>
<S> <C>
Industrial Bonds 62%
Governments 6%
Finance Bonds 3%
Utility Bonds 12%
Cash Equivalents 7%
Other 10%
</TABLE>
Cash Equivalents include short-term instruments, cash and other assets less
liabilities.
Quality Breakdown
[GRAPHIC APPEARS HERE] THE INFORMATION DEPICTED IN THE GRAPHIC IS SET FORTH IN
THE FOLLOWING TABLE:
<TABLE>
<S> <C>
Non-Investment Grade 84%
BB 59%
B 25%
Investment Grade 16%
Govt. Oblig./AAA 11%
BBB 5%
</TABLE>
<TABLE>
<CAPTION>
Maturity Profile
- --------------------------------------------------------------------------------
<S> <C>
1 year or less 16%
- --------------------------------------------------------------------------------
1-5 years 36%
- --------------------------------------------------------------------------------
6-10 years 39%
- --------------------------------------------------------------------------------
11-20 years 7%
- --------------------------------------------------------------------------------
21-30 years 2%
- --------------------------------------------------------------------------------
Average Maturity 5.5 years
- --------------------------------------------------------------------------------
Duration 3.6 years
- --------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
The PIMCO Advisors High Income Fund continued to perform well, with the Class A
shares rising 4.9% and the B and C shares rising 4.6% and 4.5%, respectively,
over the six-month period ending March 31, 1996. Even though these results
slightly underperformed the Lipper High Current Yield Average for the last six
months, the gains were achieved during a period when interest rates rose
significantly. The price of a bond moves inversely to the bond's yield. In a
period of inflationary concern, as was experienced in the first quarter of 1996,
yields historically rise, resulting in falling bond prices.
There were two key factors that aided the Fund's performance during the
last six months. Emphasis on shorter-maturity bonds (average maturity for the
portfolio as of March 31, 1996 was 5.5 years, compared to 6.7 years for its
comparative index) helped to lessen the impact rising interest rates had on
price performance. Also, the Fund's Latin American holdings performed well for
the same period. Increased confidence in the fiscal improvement programs for the
Mexican and Argentinean economies continued to improve the prospects for issues
of these countries. The manager believes efforts by Mexico and Argentina to
become modern, industrialized countries, should assist the future performance of
these securities.
Aside from the rise in interest rates, the Fund slightly underperformed its
index due to a shift in the fixed-income market to lower-rated corporate bonds.
The High Income Fund, as of March 31, 1996, had an average credit quality of BB,
an investment grade considered in the middle to upper tier of high yield bonds.
However, bonds in the lower tier were the best performing credit quality in
recent months, benefiting from the concentration on economically sensitive
securities during a period of accelerating economic growth. Because of the
Fund's defensive nature, it did not participate in the strong performance of the
lower quality sector.
Looking ahead, the manager believes the desire of many corporations to
improve their balance sheets and pay debt through restructuring programs will
continue to improve the cash flow in several of the industries that the High
Income Fund is positioned in. And the manager anticipates it will emphasize
non-economically sensitive industries such as utilities, healthcare, cable, and
telecommunications, as these securities tend to perform well in the expected
slow-growth economic environment.
Semi-Annual Report See accompanying notes/41
<PAGE>
PIMCO Advisors
High Income Fund
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Principal Value
($ in thousands) Amount (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
- --------------------------------------------------------------------------------
Short-Term Notes--3.2%
- --------------------------------------------------------------------------------
Amoco Corp., 5.180%-5.190%, 4/8/96-4/19/96 $ 1,800 $ 1,795
Duke Power Co., 5.230%, 4/12/96 1,000 998
Ford Motor Credit Co., 5.240%, 4/8/96 2,000 1,998
General Electric Capital Corp., 5.260%, 4/25/96 800 797
Shell Oil Co., 5.180%, 4/12/96 1,300 1,298
--------
Total Short-Term Notes
(Cost $6,887) 6,886
--------
- --------------------------------------------------------------------------------
U.S. Treasury Obligations--1.9%
- --------------------------------------------------------------------------------
U.S. Treasury Note, 5.000%, 1/31/98 4,000 3,950
--------
Total U.S. Treasury Obligations
(Cost $3,942) 3,950
--------
- --------------------------------------------------------------------------------
U.S. Government Agency Obligations--3.7%
- --------------------------------------------------------------------------------
Federal National Mortgage Association
(FNMA)--0.6%
FNMA (IO), 7.000%, 7/25/08 4,031 577
FNMA, 8.122%, 5/25/28 (b) 1,000 673
--------
1,250
--------
Resolution Trust Corporation (RTC)--3.1%
RTC, 6.900%, 2/25/27 1,729 1,516
RTC, 7.415%, 9/25/20 (b) 429 283
RTC, 8.000%, 6/25/26 4,342 3,706
RTC, 9.050%, 8/25/23 1,172 1,210
--------
6,715
--------
Total U.S. Government Agency Obligations
(Cost $8,013) 7,965
--------
- --------------------------------------------------------------------------------
Corporate Bonds and Notes--79.8%
- --------------------------------------------------------------------------------
Automotive Parts and Equipment--1.1%
Exide Corp., 0.000% to 12/15/97,
(12.250% to 12/15/04) (b) 2,850 2,280
--------
Building Materials--1.7%
Building Materials, 0.000% to 7/1/99,
(11.750% to 7/1/04) (b) 4,930 3,648
--------
Computers--0.7%
Unisys Corp., 12.000%, 4/15/03 1,500 1,481
--------
Containers--4.0%
Owens Illinois Inc., 11.000%, 12/1/03 3,000 3,315
Stone Container Corp., 11.500%, 10/1/04 2,000 1,965
Sweetheart Cup, Inc., 9.625%, 9/1/00 3,250 3,315
--------
8,595
--------
Cosmetics--0.7%
Revlon, Inc., 9.500%, 6/1/99 1,500 1,515
--------
Electronics--0.9%
Ametek, Inc., 9.750%, 3/15/04 2,000 2,133
--------
Entertainment and Leisure--4.8%
Bally's Grand, Inc., Series B, 10.375%,
12/15/03 3,250 3,376
Boyd Gaming Corp., 10.750%, 9/1/03 1,000 1,058
Cobb Theaters Finance Corp., 10.625%,
3/1/03 1,000 1,020
Coleman Holdings, Inc., 0.000%, 5/27/98 3,500 2,905
Showboat, Inc., 9.250%, 5/1/08 2,050 2,091
--------
10,450
--------
Financial Services--2.7%
Navistar Financial Corp., 8.875%, 11/15/98 $ 1,500 $ 1,500
Trizec Finance Ltd., 10.875%, 10/15/05 2,750 2,805
UCC Investors, 10.500%, 5/1/02 1,500 1,583
--------
5,888
--------
Food--1.0%
Doskocil Cos. Inc., 9.750%, 7/15/00 2,000 2,080
--------
Forest and Paper Products--2.9%
Buckeye Cellulose Corp., 8.500%, 12/15/05 500 495
Pacific Lumber, 10.500%, 3/1/03 1,000 970
Repap Wisconsin, Inc., 9.250%, 2/1/02 3,000 2,873
Stone Consolidated Corp., 10.250%, 12/15/00 1,750 1,838
--------
6,176
--------
Health Management--3.8%
Abbey Healthcare Group, Inc., 9.500%,
11/1/02 2,750 2,905
Genesis Health Ventures, Inc., 9.750%,
6/15/05 2,000 2,080
Healthsouth Rehabilitation, 9.500%, 4/1/01 1,500 1,575
Tenet Healthcare Corp., 10.125%, 3/1/05 1,500 1,605
--------
8,165
--------
Insurance--2.2%
Phoenix Re Corp., 9.750%, 8/15/03 2,000 2,130
Reliance Group Holdings, 9.000%, 11/15/00 2,500 2,538
--------
4,668
--------
Lodging--2.0%
Hammons, (J.Q.) Hotels L.P., 8.875%, 2/15/04 3,500 3,360
HMH Properties, Inc., 9.500%, 5/15/05 1,000 975
--------
4,335
--------
Media--14.5%
Benedek Broadcasting Corp., 11.875%, 3/1/05 2,000 2,110
Cablevision Systems Corp., 9.875%-10.750%,
4/1/04-4/1/23 3,400 3,562
Century Communications Corp., 11.875%,
10/15/03 2,750 2,943
CF Cable TV, Inc., 9.125%, 7/15/07 2,000 2,030
Continental Cable, 8.300%-11.000%,
5/15/06-6/1/07 3,500 3,883
Granite Broadcasting Corp., 10.375%,
5/15/05 1,500 1,517
Infinity Broadcasting Corp., 10.375%, 3/15/02 1,500 1,613
K-III Communications, Inc., 8.500%, 2/1/06 2,500 2,403
Rogers Cablesystems of America, Inc.,
10.000%, 3/15/05 2,000 2,080
SCI Television, Inc., 11.000%, 6/30/05 3,100 3,247
Sinclair Broadcast Group, Inc., 10.000%,
9/30/05 500 498
Telewest Communications PLC, 9.625%,
10/1/06 3,500 3,491
Young Broadcasting, Inc., 9.000%, 1/15/06 2,000 1,910
--------
31,287
--------
</TABLE>
42/PIMCO Advisors Funds See accompanying notes
<PAGE>
PIMCO Advisors
High Income Fund
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Principal Value
($ in thousands) Amount (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
Miscellaneous Manufacturing--3.9%
American Standard, Inc., 11.375%, 5/15/04 $ 2,500 $ 2,725
Doane Products Co., 10.625%, 3/1/06 500 513
Figgie International, Inc., 9.875%, 10/1/99 2,500 2,550
Sequa Corp., 10.000%, 5/14/01 2,500 2,510
--------
8,298
--------
Oil and Gas--5.7%
Ferrell Gas, Inc., 10.000%, 8/1/01 3,000 3,195
Gulf Canada Resources Ltd., 9.250%, 1/15/04 3,575 3,629
Nuevo Energy Co., 12.500%, 6/15/02 1,750 1,880
Triton Energy Corp., 0.000%, 11/1/97 4,000 3,540
--------
12,244
--------
Private Asset-Backed: Mortgages--3.3%
Airplanes Pass Through Trust, 10.875%,
3/15/19 2,000 1,996
Asset Securitization Corp., 7.384%, 8/13/29 1,500 1,418
LTC, 9.200%, 8/4/23 1,000 1,052
MBLAC-NY REO Associates L.P., 8.978%,
2/1/98 (b) 1,312 1,311
Red Mountain Funding Corp., 9.150%,
11/28/27 1,500 1,350
--------
7,127
--------
Publishing--2.6%
Hollinger International Publishing, 9.250%,
2/1/06 1,500 1,478
World Color Press, Inc., 9.125%, 3/15/03 4,000 4,040
--------
5,518
--------
Retail--1.6%
Cumberland Farms, 10.500%, 10/1/03 500 484
Pathmark Stores, Inc., 9.625%, 5/1/03 2,500 2,355
Pathmark Stores, Inc., 0.000%, until 11/1/99
(10.7500% to 11/1/03) (b) 1,000 605
--------
3,444
--------
Steel--0.9%
Earle Jorgensen,10.750%, 3/1/00 2,000 1,965
--------
Telecommunications--4.6%
Albritton Communications, 9.750%, 11/30/07 1,500 1,432
Lenfest Communications, 8.375%, 11/1/05 2,150 2,053
Mobilemedia Communications, 9.375%,
11/1/07 1,500 1,470
Paging Network, Inc., 8.875%-10.125%,
2/1/06-8/1/07 2,000 2,030
Rogers Cantel Mobile Communications, Inc.,
10.750%, 11/1/01 2,750 2,873
--------
9,858
--------
Textiles--0.9%
WestPoint Stevens, Inc., 8.750%, 12/15/01 2,000 1,995
--------
Transportation: Air--0.7%
Atlas Air, Inc., 12.250%, 12/1/02 1,500 1,598
--------
Transportation: Marine--0.8%
Teekay Shipping Corp., 8.320%, 2/1/08 1,750 1,704
--------
Utilities: Electric--10.9%
AES Corp., 9.750%, 6/15/00 $ 3,500 $ 3,596
California Energy Co., 9.875%, 6/30/03 2,000 2,070
California Energy Co., 0.000%, until 1/15/97
(10.250% to 1/15/04) (b) 4,650 4,418
CTC Mansfield Funding Corp., 11.125%,
9/30/16 3,000 3,125
El Paso Electric Co., 8.900%, 2/1/06 1,500 1,526
First PV Funding, 10.150%, 1/15/16 2,000 2,090
Long Island Lighting Co., 7.125%, 6/1/05 3,000 2,756
Niagara Mohawk Power, 7.875%-9.500%,
3/1/21-4/1/24 2,500 2,168
North Atlantic Energy, 9.050%, 6/1/02 1,736 1,724
--------
23,473
--------
Utilities: Gas--0.9%
AmeriGas Partners, L.P., 10.125%, 4/15/07 1,750 1,846
--------
Total Corporate Bonds and Notes
(Cost $165,669) 171,771
--------
Sovereign Issues--3.4%
Republic of Argentina, 5.250%-6.312%,
3/31/05-3/31/23 (b) 8,673 6,042
United Mexican States, Series B, 6.250%,
12/31/19 2,000 1,268
--------
Total Sovereign Issues
(Cost $7,092) 7,310
--------
<CAPTION>
Shares
- --------------------------------------------------------------------------------
Preferred Stocks--3.8%
- --------------------------------------------------------------------------------
Banks--1.3%
First Nationwide Bank FSB, 11.500% 25,000 2,813
--------
Media--2.5%
Cablevision Systems, 11.125% 21,000 2,090
Newscorp Overseas, Ltd., 8.625% 133,200 3,346
--------
5,436
--------
Total Preferred Stocks
(Cost $8,143) 8,249
--------
Total Investments (a)--95.8%
(Cost $199,746) 206,131
--------
Other Assets and Liabilities, Net--4.2% 9,139
--------
Total Net Assets--100.0% $215,270
========
</TABLE>
Notes to Portfolio of Investments ($ in thousands):
(a) The cost of investments for federal income tax purposes is $199,746. At
March 31, 1996, net unrealized appreciation was $6,385. This consisted of
aggregate gross unrealized appreciation for all investments on which there was
an excess of market value over tax cost of $7,509 and aggregate gross unrealized
depreciation of all investments on which there was an excess of tax cost over
market value of $1,124.
(b) Variable rate security.
Semi-Annual Report See accompanying notes/43
<PAGE>
- --------------------------------------------------------------------------------
PIMCO Advisors
Total Return Income Fund March 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Objective: Portfolio: Total Net Assets: Number of Securities PIMCO Advisors
Maximum total return, Primarily investment $164 million in the Portfolio: Institutional Manager:
consistent with grade bonds. 33 (not including short-term Pacific Investment
preservation of capital. instruments) Management Company
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE*
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Average Annual Total Return For periods ended 3/31/96
A Shares B Shares C Shares Lehman Lipper Int.
(Incep. 12/22/94) (Incep. 5/22/95) (Incep. 12/22/94) Aggregate Inv. Grade
Adjusted Adjusted Adjusted Bond Index Fixed Avg.
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C>
1 year 9.4% 4.2% -- -- 7.5% 10.8% 9.7%
Inception 10.7% 6.6% 6.0% 1.0% 9.9% -- --
</TABLE>
* The adjusted returns above include the the effects of applicable sales
charges. B share returns are unannualized. The chart to the right reflects
the performance of PIMCO Advisors Total Return Income Fund A and C through
March 31, 1996. The performance of Total Return Income Fund B will be
greater or less than the lines shown based on differences in inception
dates, fees, and sales charges. Past performance is not an indication of
future results. See page 54 for Footnotes, which should be read in
connection with this material.
[GRAPHIC APPEARS HERE] THE GRAPH DEPICTS THE VALUE OF $10,000 INVESTED SINCE
INCEPTION OF THE FUND THROUGH 3/31/96 IN THE FUND'S A AND
C CLASSES OF SHARES, THE LEH. AGG. INDEX AND THE 6
MONTH CD INDEX OF $10,846; $11,276; $11,636 AND $10,756;
RESPECTIVELY.
TOTAL RETURN TOTAL RETURN LEH AGG 6 MO
MONTH A C INDEX CD INDEX
------------ ----------- ------------ --------- --------
09/30/94 9525 10000 10000 10000
09/30/95 10581 10949 11362 10468
03/31/96 10846 11276 11636 10756
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
Sector Breakdown
[GRAPHIC APPEARS HERE] THE INFORMATION DEPICTED IN THE GRAPHIC IS SET FORTH IN
THE TABLE BELOW:
<TABLE>
<S> <C>
U.S. Government Agency Obligations 67%
Sovereign Issues 4%
Corporate Bonds and Notes 2%
Cash Equivalents 27%
</TABLE>
Cash Equivalents include short-term instruments, cash and other assets less
liabilities.
[GRAPHIC APPEARS HERE] THE INFORMATION DEPICTED IN THE GRAPHIC IS SET FORTH IN
THE TABLE BELOW:
Quality Breakdown
<TABLE>
<S> <C>
Government/AAA 95%
AA 2%
A 1%
BBB 1%
BB 1%
</TABLE>
<TABLE>
<CAPTION>
Maturity Profile
- --------------------------------------------------------------------------------
<C> <C>
1-5 years 29%
- --------------------------------------------------------------------------------
6-10 years 50%
- --------------------------------------------------------------------------------
11-20 years 9%
- --------------------------------------------------------------------------------
21-30 years 12%
- --------------------------------------------------------------------------------
Average Maturity 8.7 years
- --------------------------------------------------------------------------------
Duration 5.1 years
- --------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
The Total Return Income Fund, despite declining bond prices in the first quarter
of 1996, outperformed the Lipper Intermediate Investment Grade Debt Average for
the six-month period ended March 31, 1996. The Class A shares posted a 2.5%
return for the last six months versus the average's 2.2% gain. The B and C
shares rose 2.1% and 2.0%, respectively, for the same time period.
The Fund seeks to maximize total return through both capital appreciation
and yield. It is managed by Bill Gross of Pacific Investment Management Company,
who has been described as "One of the bond market's biggest stars" (The Wall
Street Journal 3/96). As interest rates fell in 1995, the prices of bonds
increased, resulting in one of the strongest bull markets in fixed-income
history. The Fund utilized its total return philosophy by maintaining an
above-index average maturity, and benefited because longer-term bonds
appreciated in value more than the relative index.
Other factors that aided the Fund's performance were its small allocations
to high-quality foreign bonds and its exposure to mortgage-backed securities.
Countries such as Germany and Canada benefited from low inflation and high
yields relative to the U.S. fixed-income market. This especially helped the
Fund's performance in the first quarter of 1996, when the domestic bond market
underperformed its global competitors. Also, the manager believed adjustable
rate mortgage securities were effective substitutes for short-term Treasury
bills and cash. Due to their attractive yields and relatively low risk, these
securities lessened the impact Treasury bonds' rising rates had on the Fund's
return in the first quarter.
However, the rising interest rates in the first quarter of 1996 sent bond
prices lower, hindering the performance of most bond funds, including the Total
Return Income Fund. Given the manager's positive long-term view on the bond
market, the Fund maintained an above-average maturity moving into the first
quarter. As a result, declining bond prices in the first quarter of 1996
affected the Fund more than its comparable Lipper average.
The manager believes continued slow economic growth and restrained
inflation will put the bond market back on bullish footing. Therefore, the
manager anticipates that the Fund will maintain its above-index duration target,
seeking to capitalize on potentially rising bond prices. Mortgage-backed
securities will also continue to play an important role in the portfolio, as the
manager attempts to capture what he believes are attractive values in this
sector.
44/PIMCO Advisors Funds See accompanying notes
<PAGE>
PIMCO Advisors
Total Return Income Fund
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Principal Value
($ in thousands) Amount (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
- --------------------------------------------------------------------------------
Short-Term Notes--45.0%
- --------------------------------------------------------------------------------
Abbott Laboratories, 5.340%, 4/23/96 $ 3,700 $ 3,687
Amoco Co., 5.190%, 4/19/96 6,500 6,482
AT&T Corp., 5.180%-5.370%, 4/1/96-5/2/96 6,000 5,988
Canadian Wheat Board, 5.250%, 4/29/96 3,000 2,987
Coca-Cola Co., 5.160%, 4/3/96 1,200 1,199
Commonwealth Bank, 5.240%, 4/29/96 3,000 2,988
Ford Motor Credit Co., 5.250%,
5/10/96-6/26/96 6,000 5,948
General Electric Capital Corp., 5.230%, 4/3/96 8,000 7,997
Eli Lilly & Co., 5.240%, 6/17/96 3,200 3,162
Minnesota Mining & Manufacturing Co.,
5.220% 4/24/96 5,000 4,983
Motorola, Inc., 5.170%-5.370%, 4/2/96-5/6/96 6,300 6,274
National Rural Utilities Cooperative Finance
Corp., 5.300%, 5/20/96-6/7/96 4,500 4,465
Pitney Bowes Credit, Inc., 5.130%-5.210%,
4/2/96-5/14/96 5,500 5,480
Shell Oil Co., 5.180%-5.330%,
4/11/96-4/12/96 4,700 4,692
U.S. West Communications, Inc., 5.150%, 4/10/96 1,000 999
Wal-Mart Stores, Inc., 5.280%-5.370%,
4/1/96-4/11/96 5,500 5,497
Warner Lambert, 5.540%, 4/9/96 1,000 999
---------
Total Short-Term Notes (Cost $73,841) 73,827
---------
- --------------------------------------------------------------------------------
U.S. Treasury Obligations--0.4%
- --------------------------------------------------------------------------------
U.S. Treasury Bills, 4.750%-4.960%,
5/9/96-8/29/96 (e) 695 690
---------
Total U.S. Treasury Obligations (Cost $690) 690
---------
- --------------------------------------------------------------------------------
U.S. Government Agency Obligations--114.2%
- --------------------------------------------------------------------------------
Federal Farm Credit Bank--0.5%
Federal Farm Credit Bank, 5.110%, 4/11/96 800 799
---------
Federal Home Loan Bank (FHLB)--2.0%
FHLB, 5.300%, 4/22/96 1,500 1,495
FHLB, 7.550%, 4/1/23 (b) 1,680 1,730
---------
3,225
---------
Federal Home Loan Mortgage Corp.
(FHLMC)--44.5%
FHLMC, 5.025%-5.280%, 4/22/96-4/25/96 26,500 26,411
FHLMC, 6.500%, 4/11/26 (c) 23,000 21,915
FHLMC, 6.910%, 8/1/24 (b) 2,653 2,717
FHLMC, 7.000%, 7/15/23 198 165
FHLMC, 7.000%, 4/11/26 (c) 10,000 9,765
FHLMC, 7.640%, 1/1/24 (b) 1,883 1,940
FHLMC, 8.000%, 9/15/24 1,900 2,010
FHLMC, 8.000%, 4/11/26 (c) 8,000 8,150
---------
73,073
---------
Federal National Mortgage Association
(FNMA)--31.1%
FNMA, 5.120%-5.170%, 4/15/96-5/3/96 17,285 17,240
FNMA, 6.310%, 4/23/96, (c) 30,000 30,220
FNMA, 6.900%, 5/25/23 117 96
FNMA, 7.490%, 10/1/23 (b) 1,770 1,827
FNMA, 7.790%, 1/1/24 (b) 1,065 1,102
FNMA, 8.500%, 11/25/18 550 550
---------
51,035
---------
Government National Mortgage
Association (GNMA)--36.1%
GNMA, 5.500%, 7/20/24 (b) $ 508 $ 497
GNMA, 6.400%, 3/20/23 3,709 3,750
GNMA, 6.500%, 8/20/24 (b) 1,187 1,197
GNMA, 6.500%, 10/20/24-1/20/25 5,232 5,294
GNMA, 6.500%, 5/20/26 (c) 10,000 9,485
GNMA, 7.000%, 4/18/26 (c) 40,000 39,025
---------
59,248
---------
Total U.S. Government Agency Obligations (Cost $188,368) 187,380
---------
- --------------------------------------------------------------------------------
Corporate Bonds and Notes--3.9%
- --------------------------------------------------------------------------------
Financial Services--1.0%
General Motors Acceptance Corp., 7.750%, 7/18/96 1,000 1,006
Morgan Stanley Group, Inc., 7.790%, 2/3/97 625 635
---------
1,641
---------
Media--0.6%
Time Warner, Inc., 7.450%, 2/1/98 1,000 1,017
---------
Private Asset-Backed: Mortgages--1.6%
CMC Securities Corp., 7.910%, 4/25/25 (b) 909 928
DLJ Mortgage Acceptance Corp., 7.630%,
5/25/24 (b) 720 735
Ryland Mortgage Securities Corp., 7.910%,
9/25/23 (b) 838 852
---------
2,515
---------
Transportation: Air--0.7%
Delta Air Lines, Inc., 10.140%, 8/14/12 (b) 1,000 1,138
---------
Total Corporate Bonds and Notes (Cost $6,140) 6,311
---------
- --------------------------------------------------------------------------------
Sovereign Issues (d)--7.3%
- --------------------------------------------------------------------------------
Commonwealth of Canada, 8.750%, 12/1/05 C$ 3,500 2,768
Republic of Argentina, 6.312%, 3/31/05 (b) $ 2,970 2,139
Republic of Germany, 6.250%, 1/4/24 DM 11,700 7,027
---------
Total Sovereign Issues (Cost $12,148) 11,934
---------
<CAPTION>
Contracts
- --------------------------------------------------------------------------------
Purchased Put Options--0.0%
- --------------------------------------------------------------------------------
Euro Dollar Futures, expiring June `96 @ 90.75 23 0
---------
Total Purchased Put Options (Cost $0) 0
---------
Total Investments--170.8%
(Cost $281,187) 280,142
---------
Other Assets and Liabilities, Net--(70.8%) (116,114)
---------
Net Assets--100.0% $ 164,028
=========
</TABLE>
Notes to Portfolio of Investments ($ in thousands):
(a) The cost of investments for federal income tax purposes is $281,187. At
March 31, 1996, net unrealized depreciation was $1,045. This consisted of
aggregate gross unrealized appreciation for all investments on which there was
an excess of market value over tax cost of $922 and aggregate gross unrealized
depreciation of all investments on which there was an excess of tax cost over
market value of $1,967.
(b) Variable rate security.
(c) Securities purchased on a to-be-announced basis.
(d) Principal amount denoted in indicated currency:
C$--Canadian Dollar
DM--German Mark
(e) Either all or a portion of these securities has been segregated with the
custodian to cover futures contracts.
Semi-Annual Report See accompanying notes/45
<PAGE>
- --------------------------------------------------------------------------------
PIMCO Advisors
Tax Exempt Fund March 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Objective: Portfolio: Total Net Assets: Number of Securities PIMCO Advisors
High current income Municipal bonds. $55 million in the Portfolio: Institutional Manager:
exempt from federal 43 (not including short-term Columbus Circle
taxes, consistent with instruments) Investors
preservation of capital.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE*
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Average Annual Total Return For periods ended 3/31/96
A Shares B Shares C Shares Lipper Muni.
(Incep. 3/14/91) (Incep. 5/30/95) (Incep. 11/1/85) Lehman Bond Fund
Adjusted Adjusted Adjusted Muni. Index Average
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C>
1 year 7.1% 2.0% -- -- 5.1% 8.4% 7.2%
5 years 7.2% 6.2% -- -- 6.4% 8.1% 7.7%
10 years -- -- -- -- 6.4% 8.1% 7.5%
Inception 7.1% 6.0% 3.0% -2.0% 7.8% -- --
</TABLE>
* The adjusted returns above include the effects of applicable sales charges.
B share returns are unannualized. The chart to the right reflects the
perfor- mance of PIMCO Advisors Tax Exempt Fund C through March 31, 1996.
The performance of Tax Exempt Fund A and B will be greater or less than the
line shown based on differences in inception dates, fees, and sales
charges. Past performance is not an indication of future results. See page
54 for Footnotes, which should be read in connection with this material.
[GRAPHIC APPEARS HERE] THE GRAPHIC DEPICTS THE VALUE OF $10,000 INVESTED AT THE
FUND'S INCEPTION THROUGH 3/31/96 OF THE FUND'S C CLASS OF
SHARES, THE LEHMAN MUNI. INDEX AND THE 6 MONTH CD INDEX
OF $21,804; $24,987 AND $19,140; RESPECTIVELY.
MONTH Tax Exempt C Lehman Muni Index 6 Month CD Index
- ---------- ------------ ----------------- ----------------
09/30/85 10,000 10,000 10,000
09/30/86 12,159 12,051 10,654
09/30/87 11,907 12,115 11,367
09/30/88 13,383 13,687 12,263
09/30/89 14,555 14,875 13,443
09/30/90 15,216 15,886 14,597
09/30/91 16,857 17,982 15,598
09/30/92 18,369 19,861 16,250
09/30/93 20,810 22,392 16,799
09/30/94 19,408 21,845 17,522
09/30/95 21,358 24,287 18,628
03/31/96 21,804 24,987 19,140
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
Sector Breakdown
THE INFORMATION DEPICTED IN THE GRAPHIC IS
SET FORTH IN THE TABLE BELOW:
[GRAPHIC APPEARS HERE]
<TABLE>
<S> <C>
Municipal Bonds 100%
</TABLE>
Quality Breakdown
THE INFORMATION DEPICTED IN THE GRAPHIC IS
SET FORTH IN THE TABLE BELOW:
[GRAPHIC APPEARS HERE]
<TABLE>
<S> <C>
AAA 36%
AA 39%
A 25%
</TABLE>
<TABLE>
<CAPTION>
Maturity Profile
- --------------------------------------------------------------------------------
<C> <C>
1 year or less 8%
- --------------------------------------------------------------------------------
1-5 years 12%
- --------------------------------------------------------------------------------
6-10 years 24%
- --------------------------------------------------------------------------------
11-20 years 33%
- --------------------------------------------------------------------------------
21-30 years 23%
- --------------------------------------------------------------------------------
Average Maturity 13.4 years
- --------------------------------------------------------------------------------
Duration 8.3 years
- --------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
The PIMCO Advisors Tax Exempt Fund continued to provide a high level of
federally tax exempt current income, by investing in high-quality municipal
bonds. The average quality of the Fund's portfolio was AA, as rated by Standard
& Poor's (AAA is the highest rating a municipal bond can receive). As of March
31, 1996, the Fund's current tax-free standardized yield for A shares was 4.2%,
which translates to a 6.6% taxable yield for investors in the 36% tax bracket.
For B and C shares, the current tax-free yield was 3.6%, the equivalent to a
5.6% taxable yield.
For the six-month period ended March 31, the Fund's A shares returned 2.5%,
while the B and C shares rose 2.2%, slightly underperforming the Lipper General
Municipal Debt Fund Average, which posted a 2.7% return.
The main reason for the Tax Exempt Fund's slight underperformance was its
high exposure to longer-term municipal securities relative to its Index. For the
first quarter of 1996, long-term interest rates rose substantially, and since
bond prices move inversely to bond yields, the price of the Fund declined as
long-term interest rates increased. The yield on the 30-year U.S. Government
Treasury Bond increased from 5.9% on December 31, 1995, to 6.7% on March 31,
1996. Thus, the yield of the Fund increased, but its price was negatively
affected.
Bond yields rise during inflationary periods, explaining the past six
month's performance, but the Fund's manager believes inflation will not hinder
the economy going forward. As a result, the Fund will continue its exposure to
longer-term securities since these fixed-income products benefit greatest from
declining interest rates. The quality of the Fund, however, will remain at its
high level as the manager aims to maintain a stable tax-exempt portfolio.
46/PIMCO Advisors Funds See accompanying notes
<PAGE>
PIMCO Advisors
Tax Exempt Fund
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Principal Value
($ in thousands) Amount (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
- --------------------------------------------------------------------------------
Municipal Bonds and Notes--98.1%
- --------------------------------------------------------------------------------
Arizona--1.7%
Salt River Project Agricultural Improvement
and Power District, Electric Revenue Bond,
Series 1993 B, 5.250%, 1/1/13 $ 1,000 $ 950
--------
California--10.0%
City of San Jose, Redevelopment Agency,
Merged Area Redevelopment Project, Tax
Allocation Bonds (MBIA Insured),
Series 1993, 6.000%, 8/1/15 500 521
Los Angeles Convention and Exhibition Center
Authority, Certificates of Participation,
Series 1985, (Prerefunded 12/1/05),
9.000%, 12/1/10-12/1/20 3,000 3,912
Los Angeles County Transportation
Commission, Sales Tax Revenue Refunding
Bonds, Series 1991 B, 6.500%, 7/1/13 1,000 1,038
--------
5,471
--------
District of Columbia--1.9%
Metropolitan Washington Airports Authority
System Revenue Bond, (MBIA Insured),
Series 1992 A, 6.625%, 10/1/21 1,000 1,063
--------
Florida--7.1%
Florida State Board of Education, Capital Outlay
Bonds, Series E, 5.250%, 6/1/23 2,000 1,830
Jacksonville Electric Authority, Bulk Power
Supply System Revenue Bonds,
(Prerefunded 10/1/00) Scherer 4 Project,
Issue One, Series 1991 A, 6.750%, 10/1/21 1,000 1,105
Jacksonville Electric Authority, St. Johns River
System Revenue Bonds, Issue Two, Series
11, 5.375%, 10/1/13 1,000 962
--------
3,897
--------
Georgia--3.5%
Atlanta, Georgia, General Obligation Bonds,
5.600%, 12/1/18 2,000 1,932
--------
Hawaii--2.0%
State of Hawaii, Airport System Revenue Bonds,
Second Series of 1991, 6.900%, 7/1/12 1,000 1,109
--------
Illinois--9.6%
Illinois, Educational Facility Authority,
Northwestern University Revenue Bonds,
(Prerefunded 12/1/01), Series 1985,
6.900%, 12/1/21 1,000 1,123
State of Illinois, General Obligation Bonds,
Series of March 1992, 6.250%, 10/1/12 1,000 1,037
State of Illinois, Highway Authority, Highway
Revenue Bonds, Series 1992 A, 6.375%,
1/1/15 1,000 1,045
State of Illinois, Sales Tax Revenue Refunding
Bonds, Series Q, 6.000%, 6/5/12 1,000 1,038
University of Illinois Board of Trustees,
Auxiliary Facility System Revenue Bonds,
Series 1991, 5.750%, 4/1/22 1,000 994
--------
5,237
--------
Indiana--6.2%
Indiana Municipal Power Agency, Power
Supply System Revenue Bonds,
(Prerefunded 1/1/00), Series 1989 A,
7.100%, 1/1/15 $ 1,000 $ 1,101
Indianapolis, Local Public Improvement Bond
Bank, Transportation Revenue Bond,
Series 1992 and 1992 D, 6.000%-6.750%,
7/1/10-2/1/14 1,300 1,381
Petersburg County Pollution Control Refunding
Bonds, Indianapolis Power & Light, Series
1993 B, 5.400%, 8/1/17 1,000 946
--------
3,428
--------
Mississippi--2.3%
State of Mississippi, General Obligation
Bonds, Series 1994 A, 5.100%, 11/15/12 1,325 1,262
--------
Nebraska--2.5%
Nebraska Public Power District Revenue
Bonds, Series 1993 C, 5.000%, 1/1/17 1,500 1,363
--------
Nevada--2.0%
State of Nevada, General Purpose Revenue
Bonds, 6.500%, 10/1/09 1,000 1,069
--------
New Hampshire--2.0%
New Hampshire Turnpike System, Refunding
Revenue Bonds, (FGIC Insured), Series
1991 A, 6.750%, 11/1/11 1,000 1,097
--------
New Jersey--3.4%
Washington Township Board of Education
(Gloucester County) School Bonds
Series 1996, 5.100%, 2/1/14 2,000 1,875
--------
New York--7.9%
New York City, General Obligation Bonds,
Series B, Subseries B-2, 3.800%, 8/15/03 200 200
New York Municipal Water Finance Authority,
Water and Sewer System Revenue Bonds,
(Prerefunded 6/15/01), Series 1991 C,
7.375%, 6/15/13 1,800 1,944
State of New York, Local Government
Assistance Corp., Sales Tax Revenue
Bonds, Series 1992 C, 6.000%, 4/1/12 650 670
State of New York, Thruway Authority,
Revenue Bonds, (MBIA Insured), Series
1995 A, 5.500%, 4/1/15 1,000 969
Triborough Bridge & Tunnel Authority,
General Purpose Revenue Bonds,
Series Y, 6.000%, 1/1/12 500 518
--------
4,301
--------
North Dakota--2.0%
Mercer County Pollution Control Revenue
Bonds, Series 1991, 6.900%, 2/1/19 1,000 1,069
--------
Ohio--1.8%
Cleveland Water and Sewer Revenue
Refunding and Improvement Revenue
Bonds (MBIA Insured), Series 1993 G,
Number 1, 5.500% 1/1/21 1,000 975
--------
</TABLE>
Semi-Annual Report See accompanying notes/47
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Principal Value
($ in thousands) Amount (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
Pennsylvania--6.3%
City of Pittsburgh, General Obligation Bonds,
(AMBAC Insured) Series 1993 A, 5.500%,
9/1/14 $ 1,525 $ 1,509
Delaware River Port Authority, 5.400%, 1/1/13 1,000 966
State of Pennsylvania, Industrial Development
Authority Revenue Bonds, (AMBAC
Insured), 5.500%, 1/1/14 1,000 968
--------
3,443
--------
South Carolina--3.5%
Charleston County, Resource Recovery
Revenue Bonds, (Foster Wheeler
Charleston Resource Recovery Project),
Series 1987 A, 9.250%, 1/1/10 1,750 1,910
--------
Texas--14.1%
Board of Regents of the University of Texas
System, Revenue Financing System
Refunding Bonds, Series 1991 B, 6.750%,
8/15/13 1,000 1,091
City of Austin, Public Improvement Refunding
Bonds, Series 1993 A, 4.800%, 9/1/08 750 720
Dallas Water and Sewer System Revenue
Bonds, Series 1994, 5.250%, 4/1/13 1,000 954
Dallas, Texas, Independent School District,
General Obligation Bonds, 5.700%, 8/15/12 1,250 1,253
Houston, Texas, Water and Sewer System
Revenue Bonds, Series 1993 B, 5.000%,
12/1/18 2,000 1,793
State of Texas, General Obligation Bonds,
Series 1992 C, 5.500%, 4/1/20 2,000 1,920
--------
7,731
--------
Utah--1.4%
Intermountain Power Agency, Utah 5.000%,
7/1/21 $ 875 $ 769
--------
Washington--2.0%
Municipality of Metropolitan Seattle, Sewer
Revenue Bonds, (Prerefunded 1/1/00),
Series T, 6.875%, 1/1/31 1,000 1,096
--------
Wyoming--4.9%
Lincoln County Pollution Industrial Control
Revenue Bonds Variable Rate Demand
Notes, 3.800%, 11/1/14 2,700 2,700
--------
Total Municipal Bonds and Notes
(Cost $50,984) 53,747
--------
Total Investments (a)--98.1%
(Cost $50,984) 53,747
--------
Other Assets and Liabilities, Net--1.9% 1,062
--------
Net Assets--100.0% $ 54,809
========
</TABLE>
Notes to Portfolio of Investments ($ in thousands):
(a) The cost of investments for federal income tax purposes is $50,984. At March
31, 1996, net unrealized appreciation was $2,763. This consisted of aggregate
gross unrealized appreciation for all investments on which there was an excess
of market value over tax cost of $3,117 and aggregate gross unrealized
depreciation of all investments on which there was an excess of tax cost over
market value of $354.
48/PIMCO Advisors Funds See accompanying notes
<PAGE>
- --------------------------------------------------------------------------------
PIMCO Advisors
U.S. Government Fund March 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Objective: Portfolio: Total Net Assets: Number of Securities PIMCO Advisors
Maximum total return, U.S. government $284 million in the Portfolio: Institutional Manager:
consistent with bonds. 38 (not including short-term Pacific Investment
preservation of capital. instruments) Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE*
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Average Annual Total Return For periods ended 3/31/96
A Shares B Shares C Shares Lipper Int. U.S.
(Incep. 1/3/91) (Incep. 6/2/95) (Incep. 9/16/85) Lehman Govt. Fund
Adjusted Adjusted Adjusted Govt. Index Average
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C>
1 year 8.6% 3.5% -- -- 6.9% 10.5% 8.8%
5 years 7.0% 5.9% -- -- 6.1% 8.4% 7.2%
10 years -- -- -- -- 6.5% 8.2% 7.5%
Inception 6.9% 5.9% 2.6% -2.3% 7.1% -- --
</TABLE>
* The adjusted returns above include the effects of applicable sales charges.
B share returns are unannualized. The chart to the right reflects the
performance of PIMCO Advisors U.S. Government Fund C through March 31,
1996. The performance of U.S. Government Fund A and B will be greater or
less than the line shown based on differences in inception dates, fees, and
sales charges. Past performance is not an indication of future results. See
page 54 for Footnotes, which should be read in connection with this
material.
[GRAPHIC APPEARS HERE] THE GRAPHIC DEPICTS THE VALUE OF $10,000 INVESTED SINCE
THE FUND'S INCEPTION THROUGH 3/31/96 IN THE FUND'S C
CLASS OF SHARES, THE LEHMAN GOVT. INDEX AND THE 6 MONTH
CD INDEX OF $20,597; $25,694 AND $19,266; RESPECTIVELY.
MONTH US GOVT C Lehman Gov't Index 6 Month CD Index
- ------------- --------- ------------------ ----------------
06/30/85 10,000 10,000 10,000
09/30/85 10,000 10,000 10,000
09/30/86 11,509 12,040 10,724
09/30/87 11,309 11,965 11,442
09/30/88 12,535 13,404 12,344
09/30/89 13,599 14,895 13,531
09/30/90 14,328 15,927 14,694
09/30/91 16,445 18,390 15,701
09/30/92 17,955 20,787 16,357
09/30/93 19,271 23,068 16,910
09/30/94 18,246 22,137 17,638
09/30/95 20,392 25,139 18,751
03/31/96 20,597 25,694 19,266
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
Sector Breakdown
THE INFORMATION DEPICTED IN THE GRAPHIC IS
SET FORTH IN THE TABLE BELOW:
[GRAPHIC APPEARS HERE]
<TABLE>
<S> <C>
U.S. Government Agency Obligations 100%
</TABLE>
Quality Breakdown
THE INFORMATION DEPICTED IN THE GRAPHIC IS
SET FORTH IN THE TABLE BELOW:
[GRAPHIC APPEARS HERE]
<TABLE>
<S> <C>
Government/AAA 100%
</TABLE>
<TABLE>
<CAPTION>
Maturity Profile
- --------------------------------------------------------------------------------
<C> <C>
1 year or less 12%
- --------------------------------------------------------------------------------
1-5 years 40%
- --------------------------------------------------------------------------------
6-10 years 22%
- --------------------------------------------------------------------------------
11-20 years 14%
- --------------------------------------------------------------------------------
21-30 years 12%
- --------------------------------------------------------------------------------
Average Maturity 9.7 years
- --------------------------------------------------------------------------------
Duration 5.8 years
- --------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
Despite a strong fourth quarter of 1995, the PIMCO Advisors U.S. Government Fund
underperformed the Lipper Intermediate U.S. Government Average for the six-month
period ended March 31, 1996. The Class A shares rose 1.5%, and the B and C
shares rose 1.1% and 1.0%, respectively, as of March 31, 1996. However, for the
one-year period ended the same date, the Fund outperformed its index, with a
return of 8.7% for the Class A shares.
During the fourth quarter of 1995, interest rates continued to decline as
they had for most of the year. The Fund's above-index duration (maturity)
boosted its returns. A portfolio with an above-average duration is affected
greater by interest rate fluctuations than a portfolio with a shorter duration.
Therefore, as interest rates declined in the fourth quarter of 1995, the Fund
outperformed the index due to its relatively longer duration.
The Fund's longer duration that assisted its performance in the fourth
quarter hindered its return for the first quarter of 1996. This was caused by
interest rates moving sharply higher, due to stronger than expected economic
reports, such as the better-than-expected employment figures in February. As
interest rates rose, bond prices decreased, resulting in weak performance for
the fixed-income market. The U.S. Government Fund underperformed its index for
the first quarter of 1996, and ultimately the six-month period ended March 31,
1996, due to its relatively longer duration.
However, the Fund's active management and diversified security selection
lessened the impact rising rates had on the portfolio. As of March 31, 1996, the
U.S. Government Fund's portfolio had a large weighting in mortgage-backed
securities. The manager believes these bonds offer a higher yield relative to
other fixed-income securities of the same maturity, without a large amount of
additional risk. During periods of rising interest rates, such as the first
quarter of 1996, mortgage-backed securities historically perform well. This is
due to the decreasing potential for prepayments of these securities, as
consumers choose not to refinance their mortgages because of higher interest
rates.
Going forward, the Fund intends to continue to target an above-index
duration due to Pacific Investment Management Company's belief that yields will
decline from their present levels. The manager anticipates slow economic growth
and moderate inflation will prompt declining interest rates for government
securities, creating attractive opportunities in such sectors as intermediate (2
- - 5 year) maturities. Also, the Fund will continue to emphasize both fixed and
adjustable rate mortgage-backed securities in an attempt to generate maximum
total return.
Semi-Annual Report See accompanying notes/49
<PAGE>
PIMCO Advisors
U.S. Government Fund
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS March 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Principal Value
($ in thousands) Amount (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
- --------------------------------------------------------------------------------
U.S. Treasury Obligations--4.4%
- --------------------------------------------------------------------------------
U.S. Treasury Bills, 4.960%-5.010%,
4/4/96-8/29/96(d) $ 1,030 $ 1,021
U.S. Treasury Note, 6.375%, 8/15/02 10,000 10,056
U.S. Treasury Bond, 12.375%, 5/15/04(d) 1,000 1,375
--------
Total U.S. Treasury Obligations
(Cost $12,925) 12,452
--------
- --------------------------------------------------------------------------------
U.S. Government Agency Obligations--108.2%
- --------------------------------------------------------------------------------
Federal Home Loan Bank (FHLB)--0.4%
FHLB, 5.050%, 4/29/96 1,000 997
--------
Federal Home Loan Mortgage
Corp. (FHLMC)--25.5%
FHLMC, 5.270%, 4/22/96 15,500 15,450
FHLMC, 6.000%, 4/11/26 (c) 4,000 3,708
FHLMC, 6.050%, 4/1/24 (b) 6,603 6,736
FHLMC, 6.500%, 3/15/24 11,327 8,850
FHLMC, 6.500%, 4/11/26-5/13/26 (c) 11,500 10,955
FHLMC, 6.790%, 4/1/24 (b) 3,352 3,429
FHLMC, 7.000%, 10/15/03-2/15/20 9,576 9,686
FHLMC (IO), 7.500%, 2/25/19 3,420 446
FHLMC, 7.500%, 5/13/26 (c) 8,000 7,985
FHLMC, 8.250%, 6/15/22 5,000 5,189
--------
72,434
--------
Federal Housing Administration
(FHA)--13.9%
FHA, 7.125%, 2/1/34 4,532 4,330
FHA, 7.316%, 11/1/19 12,528 12,669
FHA, 7.375%, 1/1/24 (c) 5,000 4,803
FHA, 7.430%, 4/1/23-10/1/23 15,723 15,876
FHA, 9.680%, 5/1/24 (b) 1,676 1,722
--------
39,400
--------
Federal National Mortgage
Association (FNMA)--35.8%
FNMA, 5.240%-5.250%, 5/3/96-5/15/96 9,300 9,251
FNMA, 6.000%, 11/01/03-8/25/23 15,834 15,011
FNMA, 6.370%, 8/01/28 (b) 2,706 2,732
FNMA, 6.500%, 10/25/22-10/17/24 8,505 6,438
FNMA (IO), 7.000%, 5/25/12 2,072 90
FNMA (IO), 7.000%, 8/25/16 2,946 278
FNMA, 7.000%, 10/25/21 6,805 6,197
FNMA, 7.000%, 4/11/26 (c) 10,000 9,733
FNMA, 7.500%, 05/25/22-8/25/22 27,734 27,382
FNMA, 8.000%, 2/1/09-6/25/22 11,117 11,124
FNMA, 8.500%, 9/01/24 10,071 10,417
FNMA, 8.750%, 1/25/07 2,954 3,015
--------
101,668
--------
Government National Mortgage
Association (GNMA)--28.3%
GNMA, 5.500%-7.000%, 7/20/22-2/20/25 (b) 56,915 57,521
GNMA, 9.000%, 1/15/20 6,068 6,393
GNMA, 9.500%, 5/15/16-9/15/19 9,140 9,802
GNMA, 10.000%, 11/15/09-9/15/19 5,506 6,070
GNMA, 10.250%, 10/15/98-12/15/99 635 673
GNMA, 11.250%, 12/20/15 93 103
--------
80,562
--------
U.S. Department of Veterans Affairs--4.3%
Vendee Mortgage, 7.000%, 2/15/00 $ 6,231 $ 6,269
Vendee Mortgage (IO), 7.462%, 6/15/23 255,869 5,949
12,218
--------
Total U.S. Government Agency Obligations
(Cost $303,746) 307,279
--------
<CAPTION>
Contracts
- --------------------------------------------------------------------------------
Purchased OTC Call Options--0.0%
- --------------------------------------------------------------------------------
U.S. Treasury Note, 6.750%, 6/30/99,
expiring April `96 @ $100.44 230 426
--------
Total Purchased OTC Call Options
(Cost $1,109) 426
--------
Total Securities Owned (a)
(Cost $317,780) 320,157
--------
Outstanding Put Options Written--(0.0%)
U.S. Treasury 30 Year Bond Future
expiring May `96 @ $110 5 (5)
--------
Total Outstanding Put Options Written
(Premiums Received $4) (5)
--------
Total Investments,
Net of Outstanding Options Written--112.6%
(Cost $317,776) 320,152
--------
Other Assets and Liabilities, Net--(12.6%) (35,726)
--------
Net Assets--100.0% $284,426
========
</TABLE>
Notes to Portfolio of Investments ($ in thousands):
(a) The cost of investments for federal income tax purposes is $317,780. At
March 31, 1996, net unrealized appreciation was $2,377. This consisted of
aggregate gross unrealized appreciation for all investments on which there was
an excess of market value over tax cost of $8,588 and aggregate gross unrealized
depreciation of all investments on which there was an excess of tax cost over
market value of $6,211.
(b) Variable rate security.
(c) Securities purchased on a to-be-announced basis.
(d) Either all or a portion of these securities has been segregated with the
custodian to cover futures or contracts.
50/PIMCO Advisors Funds See accompanying notes
<PAGE>
- --------------------------------------------------------------------------------
PIMCO Advisors
Short-Intermediate Fund March 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Objective: Portfolio: Total Net Assets: Number of Securities PIMCO Advisors
Current income,consis- Primarily shorter-term $118 million in the Portfolio: Institutional Manager:
tent, with relatively low investment grade bonds. 67 (not including short-term Pacific Investment
volatility of principal. instruments) Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE*
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Average Annual Total Return For periods ended 3/31/96
A Shares B Shares C Shares Lehman Lipper Short
(Incep. 8/16/91) (Incep. 5/22/95) (Incep. 8/16/91) 1-3 year Inv. Grade Fund
Adjusted Adjusted Adjusted Govt. Index Average
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C>
1 year 9.7% 6.4% -- -- 8.2% 7.8% 8.6%
3 years 5.0% 3.9% -- -- 4.3% 5.0% 4.7%
Inception 5.0% 4.3% 6.5% 1.5% 4.5% -- --
</TABLE>
* The adjusted returns above include the effects of applicable sales charges.
B share returns are unannualized. The chart to the right reflects the
performance of PIMCO Advisors Short- Intermediate Fund A and C through
March 31, 1996. The performance of Short-Intermediate Fund B will be
greater or less than the lines shown based on differences in inception
dates, fees, and sales charges. Past performance is not an indication of
future results. See page 54 for Footnotes, which should be read in
connection with this material.
[GRAPHIC APPEARS HERE] GRAPHIC DEPICTS THE VALUE OF $10,000 INVESTED AT THE
FUND'S INCEPTION THROUGH 3/31/96 OF THE FUND'S A AND C
CLASSES OF SHARES, THE LEHMAN 1-3 YR. GOVT. INDEX AND THE
6 MONTH CD INDEX OF $12,164; $12,229; $13,133 AND
$12,325; RESPECTIVELY.
Short Int. Short Int. Lehman 6 Month
MONTH A C 1-3yr Gov't. CD Index
- ------------------ ---------- ---------- ------------ --------
06/30/91 9,700 10,000 10,000 10,000
09/30/91 9,774 10,077 10,106 10,047
09/30/92 10,360 10,642 11,108 10,467
09/30/93 10,711 10,948 11,656 10,821
09/30/94 10,758 10,929 11,790 11,286
09/30/95 11,755 11,860 12,766 11,999
03/31/96 12,164 12,229 13,133 12,328
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
Sector Breakdown
THE INFORMATON DEPICTED IN THE GRAPHIC
IS SET FORTH IN THE TABLE BELOW:
[GRAPHIC APPEARS HERE]
<TABLE>
<S> <C>
U.S. Government Agency Obligations 57%
Corporate Bonds and Notes 33%
Sovereign Issues 7%
Cash Equivalents 3%
</TABLE>
Cash Equivalents include short-term instruments, cash and other assets less
liabilities.
Quality Breakdown
THE INFORMATON DEPICTED IN THE GRAPHIC
IS SET FORTH IN THE TABLE BELOW:
[GRAPHIC APPEARS HERE]
<TABLE>
<S> <C>
Government/AAA 70%
AA 2%
A 3%
BBB 15%
BB 10%
</TABLE>
<TABLE>
<CAPTION>
Maturity Profile
- --------------------------------------------------------------------------------
<S> <C>
1 year or less 38%
- --------------------------------------------------------------------------------
1-5 years 46%
- --------------------------------------------------------------------------------
6-10 years 12%
- --------------------------------------------------------------------------------
11-20 years 2%
- --------------------------------------------------------------------------------
21-30 years 2%
- --------------------------------------------------------------------------------
Average Maturity 3.5 years
- --------------------------------------------------------------------------------
Duration 2.3 years
- --------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
For the six-month period ended March 31, 1996, the Short-Intermediate Fund
outperformed the Lipper Short- Intermediate Investment Grade Average. The Class
A shares rose 3.5%, and the Class B and Class C shares rose 3.1%, while the
Lipper Average rose 2.5% for the six-month period. As of March 31, 1996, the
Fund's A share standardized yield was 5.0%.+ This compares to an average
six-month CD yield of 4.4%, according to Banxquote Money Market.
When comparing the Fund to CDs, it is important to note the differences.
CDs are guaranteed as to repayment of principal and interest. The Fund's shares
are not guaranteed, and its share price can fluctuate, up or down, depending on
market conditions.
During the fourth quarter of 1995, the Fund benefited from rising prices of
short-term securities. The price increases were the result of low inflation and
slow economic growth, two factors that are historically favorable for the
fixed-income markets. With a maturity that was above its benchmark index (Lehman
1-3 Year Government Index), the Short-Intermediate Fund outperformed due to its
exposure to more intermediate-term bonds, which historically, outperform
short-term bonds in periods of declining interest rates.
Also, security selection played an important role in the Fund's goal of
current income with relatively low volatility of principal. High quality
corporate bonds, mortgage-backed securities, and German bonds were examples of
securities that had higher yields than their U.S. government bond counterparts
with relatively little additional risk.
However, the longer maturity that aided the performance of the Fund during
the fourth quarter of 1995, somewhat hindered the Fund's results in the first
quarter of 1996. Interest rates rose sharply as economic growth appeared to
surpass expectations. The increasing rates prompted bond prices to decrease, and
as a result, the Fund was affected more than its index due to its relatively
longer maturity.
Going forward, the manager believes the economy will grow at a slow rate,
and inflation will remain at its relatively low level. Pacific Investment
Manage-ment Company believes this should create a near ideal environment for
interest rates to decline. As a result, the portfolio will continue to be
positioned with a longer maturity relative to its index to take advantage of
anticipated falling rates across the fixed-income markets.
Semi-Annual Report See accompanying notes/51
<PAGE>
PIMCO Advisors
Short-Intermediate Fund
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Principal Value
($ in thousands) Amount (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
- --------------------------------------------------------------------------------
Short-Term Notes--12.6%
- --------------------------------------------------------------------------------
Coca-Cola Co., 5.280%, 4/9/96 $ 4,000 $ 3,995
Commonwealth Bank, 5.190%-5.200%,
4/2/96-5/20/96 1,200 1,196
Commonwealth of Canada, 5.240%, 4/15/96 1,100 1,098
Du Pont (E.I.) de Nemours, 5.170%-5.220%,
4/18/96-5/31/96 2,500 2,485
Ford Motor Credit Corp., 5.240%-5.370%,
4/1/96-4/8/96 2,000 1,999
Hewlett Packard Co., 5.140%, 4/26/96 2,500 2,490
Province of Alberta, 5.250%, 4/25/96 1,500 1,495
--------
Total Short-Term Notes
(Cost $14,761) 14,758
--------
- --------------------------------------------------------------------------------
U.S. Treasury Obligations--0.2%
- --------------------------------------------------------------------------------
U.S. Treasury Bill, 5.010%, 5/23/96(e) 10 10
U.S. Treasury Note, 8.125%, 2/15/98(e) 180 187
--------
Total U.S. Treasury Obligations
(Cost $198) 197
--------
- --------------------------------------------------------------------------------
U.S. Government Agency Obligations--58.6%
- --------------------------------------------------------------------------------
Federal Home Loan Bank (FHLB)--3.8%
FHLB, 4.567%, 4/19/99 (b) 3,000 3,002
FHLB, 5.300%, 4/22/96 1,500 1,495
--------
4,497
--------
Federal Home Loan Mortgage Corp.
(FHLMC)--17.5%
FHLMC, 5.400%, 8/15/14 3,000 2,959
FHLMC, 5.650%, 11/15/19 3,000 2,987
FHLMC, 6.000%, 4/11/26 (c) 3,000 2,781
FHLMC, 6.500%, 4/11/26 (c) 1,500 1,429
FHLMC, 6.709%, 3/1/24 (b) 609 627
FHLMC, 7.000%, 7/15/97 1,595 1,606
FHLMC, 7.125%, 3/1/17 (b) 513 525
FHLMC, 7.943%, 9/1/23 (b) 1,547 1,585
FHLMC, 8.000%, 4/11/26 (c) 5,000 5,094
FHLMC, 8.100%, 7/1/18 (b) 969 998
--------
20,591
--------
Federal National Mortgage Association
(FNMA)--16.1%
FNMA, 5.750%, 2/25/05 3,960 3,910
FNMA, 6.000%, 11/25/10-12/25/18 2,858 2,788
FNMA, 6.069%, 4/25/22 (b) 711 715
FNMA, 6.368%, 7/1/28 (b) 74 75
FNMA, 6.369%, 9/1/27-10/1/28 (b) 1,534 1,549
FNMA, 6.511%, 5/1/24 (b) 2,562 2,622
FNMA, 6.588%,10/1/27 (b) 21 20
FNMA, 7.000%, 4/1/02-9/1/04 340 341
FNMA (IO), 7.000%, 4/15/19 15,094 1,476
FNMA, 7.239%, 11/1/17 (b) 858 866
FNMA, 7.319%, 7/1/17 (b) 1,385 1,423
FNMA, 7.341%, 11/1/18 (b) 755 775
FNMA, 7.412%, 1/1/21 (b) 1,279 1,285
FNMA, 7.750%, 9/25/96 255 255
FNMA, 9.384%, 7/25/23 (b) 539 430
FNMA (IO), 256.000%, 11/1/10 68 443
--------
18,973
--------
Government National Mortgage Association
(GNMA)--19.7%
GNMA, 5.000%, 1/20/26-3/20/26 (b) $ 16,748 $ 16,232
GNMA, 5.785%, 7/20/25 (b) 1,807 1,781
GNMA, 6.836%, 1/20/22 (b) 1,778 1,790
GNMA, 7.000%, 11/20/24 (b) 3,283 3,352
--------
23,155
--------
Resolution Trust Corp. (RTC)--1.5%
RTC, 6.683%, 9/25/21 (b) 1,761 1,757
--------
Total U.S. Government Agency Obligations
(Cost $70,108) 68,973
--------
- --------------------------------------------------------------------------------
Corporate Bonds and Notes--32.7%
- --------------------------------------------------------------------------------
Financial Services--7.7%
Banco Nacional de Comercio Exterior, S.N.C.,
10.555%, 6/23/97 (b) 1,500 1,518
Capital One Bank, 6.009%, 7/11/96 (b) 1,700 1,700
Chrysler Financial Corp., 7.930%, 2/3/97 2,000 2,035
Ford Motor Credit Corp., 4.830%, 4/5/99 (b) 1,000 1,015
Okobank, 7.048%, 10/29/96 (b) 750 764
Salomon, Inc., 6.175%-6.547%,
8/6/96-10/21/96 (b) 2,000 2,003
--------
9,035
--------
Media--3.4%
Time Warner, Inc., 6.314%, 8/15/00 (b) 4,000 4,027
--------
Medical Supplies--1.7%
McGaw, Inc., 10.375%, 4/1/99 2,000 2,050
--------
Metals and Mining--0.9%
Noranda Inc., 6.625%, 8/18/00 (b) 1,000 1,013
--------
Private Asset-Backed: Mortgages--6.9%
Countrywide Mortgage-Backed Securities, Inc.,
6.500%, 3/25/24 2,213 2,206
Fleet Mortgage Securities, Inc., 7.200%,
10/25/23 2,072 2,050
General Electric Capital Mortgage Services,
6.500%, 7/25/18 1,000 998
Prudential Home Mortgage Securities,
6.750%, 1/25/24 1,370 1,360
Sears Mortgage Securities, Inc.,
7.978%, 10/25/22 (b) 1,469 1,489
--------
8,103
--------
Telecommunications--2.5%
TCI Communications, Inc., 6.001%, 3/11/03 (b) 3,000 2,998
--------
Tobacco--3.4%
RJR Nabisco, 8.625%, 12/1/02 4,000 3,950
--------
Transportation: Air--2.9%
Delta Air Lines, Inc., 8.500%, 3/15/02 1,400 1,479
United Air Lines, Inc., 10.850%, 2/19/15 1,500 1,907
--------
3,386
--------
</TABLE>
52/PIMCO Advisors Fund See accompanying notes
<PAGE>
PIMCO Advisors
Short-Intermediate Fund
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Principal Value
($ in thousands) Amount (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
Utilities: Electric--3.3%
Cleveland Electric Illuminating Co., 8.170%,
11/30/98 $ 1,000 $ 990
El Paso Electric Co., 7.250%, 2/1/99 1,000 995
Lilco, 6.250%, 7/15/01 1,000 940
North Atlantic Energy Co., 9.050%, 6/1/02 1,000 993
--------
3,918
Total Corporate Bonds and Notes
(Cost $38,469) 38,480
--------
- --------------------------------------------------------------------------------
Sovereign Issues(d)--7.3%
- --------------------------------------------------------------------------------
Commonwealth of Canada, 8.750%, 12/1/05 C$ 1,150 910
Republic of Argentina, 6.312%, 3/31/05 (b) $ 3,960 2,851
Republic of Finland, 9.500%, 3/15/04 FM 4,000 955
Republic of Germany, 6.250%, 1/4/24 DM 6,500 3,904
--------
Total Sovereign Issues
(Cost $8,626) 8,620
--------
Total Investments (a)--111.4%
(Cost $132,162) 131,028
--------
Other Assets and Liabilities, Net--(11.4%) (13,437)
--------
Total Net Assets--100.0% $117,591
========
</TABLE>
Notes to Portfolio of Investments ($ in thousands):
(a) The cost of investments for federal income tax purposes is $132,162. At
March 31, 1996, net unrealized depreciation was $1,134. This consisted of
aggregate gross unrealized appreciation for all investments on which there was
an excess of market value over tax cost of $769 and aggregate gross unrealized
depreciation of all investments on which there was an excess of tax cost over
market value of $1,903.
(b) Variable rate security.
(c) Securities purchased on a to-be-announced basis.
(d) Principal amount denoted in indicated currency:
C$--Canadian Dollar
DM--German Mark
FM--Finnish Markka
(e) Either all or a portion of these securities has been segregated with the
custodian to cover futures contracts.
Semi-Annual Report See accompanying notes/53
<PAGE>
- --------------------------------------------------------------------------------
PIMCO Advisors
Money Market Fund March 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Objective: Portfolio: Total Net Assets: Number of Securities PIMCO Advisors
Current income, Short-term fixed-income $100 million in the Portfolio: Institutional Manager:
preservation of capital instruments. 24 Columbus Circle
and liquidity. Investors
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
7-Day Yields
A Shares B Shares C Shares
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
As of 3/31/96 5.17% 4.22% 5.15%
As of 9/30/95 5.34% 4.50% 5.35%
As of 3/31/95 5.65% -- 5.65%
</TABLE>
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION*
- --------------------------------------------------------------------------------
Short-Term Instruments *As a percentage of net assets
[GRAPHIC APPEARS HERE] THE INFORMATION DEPICTED IN THE GRAPHIC IS SET FORTH IN
THE TABLE BELOW:
<TABLE>
<S> <C>
Commercial Paper 100%
</TABLE>
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
The PIMCO Advisors Money Market Fund seeks to provide current income for
its shareholders. As of March 31, 1996, the Fund's seven-day yield for its Class
A and C shares was 5.1%,and 4.2% for its Class B shares.
During the first quarter of 1996, the Federal Reserve Board lowered the
Federal Funds Rate (the interest rate banks charge other banks to lend money on
an overnight basis) from 5.5% to 5.25%. As a result, the Fund's yield decreased
slightly from where it was six months ago. The manager believes the Federal
Reserve Board will continue to remain accommodative if inflation remains at its
present level and the federal deficit is reduced.
It is important to note that money market funds are neither guaranteed nor
insured by the U.S. government, and there can be no assurance that the Fund will
maintain a stable net asset value of $1.00 per share.
Note: The Money Market Fund's manager has voluntarily reduced its investment
advisory fee to 0.10% of average daily assets, and the Fund's Distributor has
voluntarily reduced the Fund's servicing fee to 0.10%. Should the voluntary
reduction of the Fund's fees cease to occur, the Fund's investment advisory and
servicing fees could increase to a maximum of 0.50% and 0.20%, respectively.
- --------------------------------------------------------------------------------
PIMCO ADVISORS FUNDS FOOTNOTES
- --------------------------------------------------------------------------------
A few notes and definitions are needed for a complete understanding of the
performance figures.
Results represent past performance, not future results. Investment return will
fluctuate and the value of an investor's shares will fluctuate and may be worth
more or less than original cost when redeemed. Total return measures
performance, assuming that all dividends and capital gains distributions were
reinvested. Average annual total returns for more than one year assume a steady
compound rate of return.
Total return, both with and without a sales charge, has been presented. For
shareholders who have not bought or sold shares during the period quoted, the
non-adjusted figures are probably more meaningful than the adjusted figures. The
adjusted figures for Class A shares include the effect of paying the maximum
initial sales charge of either 5.5% (for all stock funds), 4.75% (Global Income,
High Income, Total Return Income, Tax Exempt and U.S. Government Funds), or
3.00% (Short-Intermediate Fund). The adjusted figures for Class B shares include
the effect of paying the 5% contingent deferred sales charge (CDSC), which
declines from 5% in the first year to 0% at the beginning of the seventh year.
The adjusted figures for Class C shares includes the effect of paying the 1%
CDSC which may apply to shares redeemed during the first year of ownership.
+ Yield is quoted in accordance with current Securities and Exchange Commission
regulations and is based on the one-month period ended March 31, 1996.
Line graphs have been included so an investor can compare a Fund's historical
performance to that of an appropriate broad based index. Each index reflects a
group of unmanaged securities, and it is not possible to invest in an unmanaged
index. The Standard & Poor's 500 and Standard & Poor's Mid-Cap are indices of
stocks of companies with larger- and medium-sized capitalizations, respectively.
The Russell 2000 is an index of stocks of companies with small capitalizations.
The MSCI EAFE is an index of foreign stocks. The Philadelphia Gold and Silver
Index is an index of stocks of companies in the gold and silver mining industry.
The Salomon Brothers Currency-Hedged World Government Bond Index is an index of
currency-hedged U.S. and foreign government bonds. The Lehman BB Intermediate
Bond Index is an index of intermediate-term bonds with a BB rating. The Lehman
Aggregate Bond Index is an index of a variety of bonds. The Lehman Municipal
Bond Index is an index of municipal securities rated Baa or better. The Lehman
Government Index is an index of various government securities and the Lehman
Government 1-3 year Index is an index of a variety of government securities with
1-3 year maturities. Duration is a measurement of a Fund's price sensitivity
expressed in years.
Lipper averages are calculated by Lipper Analytical Services, Inc., a nationally
recognized mutual fund performance evaluation firm. They are performance
averages of those funds that are tracked by Lipper, with the investment
objective noted. Lipper rankings are based on total returns, not adjusted for
sales charges.
The PIMCO Advisors stock funds can invest in foreign securities and the
International Fund invests primarily in these securities, which can involve
special risks due to foreign economic and political developments. The
Opportunity and Discovery Funds generally invest in small-cap stocks, which can
be riskier than the overall stock market. The Innovation and Precious Metals
Funds concentrate their portfolios thereby possibly making them more volatile
than a more diversified stock portfolio, and, therefore, should be considered as
only part of a diversified portfolio. The High Income, Total Return Income and
Short-Intermediate Funds can invest a portion of their assets in foreign bonds,
and the Global Income Fund invests primarily in these securities, which entails
special risks. These Funds and the Tax Exempt Fund can invest in high yield
bonds, which entail greater risk, such as less liquidity and possibility of
default. The U.S. Government Fund is not guaranteed by the U.S. government.
54/PIMCO Advisors Funds See accompanying notes
<PAGE>
PIMCO Advisors
Money Market Fund
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS MARCH 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Principal Value
($ in thousands) Amount (Note 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
- --------------------------------------------------------------------------------
Short-Term Notes--100.6%
- --------------------------------------------------------------------------------
Abbey National North America, 5.300%,
5/9/96 $ 5,000 $ 4,972
Bass Financial, 5.120%, 4/19/96 3,500 3,491
Bell Atlantic Network Funding, 5.420%,
4/11/96 2,500 2,496
BHF Finance, 5.350%, 4/15/96 5,000 4,990
Canadian Wheat Board, 5.220%,
4/9/96-4/12/96 5,000 4,994
Cooperative Association of Tractor
Dealers, Inc., 5.400%-5.500%,
4/4/96-4/19/96 4,500 4,495
Corporate Asset Funding Co. Inc.,
5.180%-5.450%, 4/1/96-4/2/96 3,200 3,200
CSW Credit, Inc., 5.180%-5.350%,
4/4/96-4/18/96 4,000 3,994
Dean Witter Discover Corp., 5.320%, 4/16/96 3,000 2,993
Golden Managers Acceptance Corp.,
5.350%, 5/1/96 5,000 4,978
Goldman Sachs & Co., 5.300%, 4/16/96 4,000 3,991
Government Development Bank Of
Puerto Rico, 5.400%, 5/1/96 5,000 4,978
Matterhorn Capital Corp., 5.200%, 4/12/96 5,000 4,992
National Rural Utilities Cooperative Finance
Corp., 5.200%-5.230%, 5/2/96 $ 5,000 $ 4,978
Nestle Capital Corp., 5.280%, 4/9/96 5,000 4,994
Oesterreichische Kontrol Bank, 5.350%, 5/6/96 3,000 2,984
Pearson, Inc., 5.350%, 4/18/96 4,200 4,189
Pepsico, Inc., 5.220%-5.320%, 4/8/96-4/25/96 4,500 4,490
PHH Corp., 5.240%-5.330%, 4/22/96-4/24/96 5,000 4,984
Preferred Receivables Funding Corp.,
5.350%, 4/17/96 4,000 3,990
Redland Finance, Inc., 5.350%, 4/19/96 3,500 3,491
Sheffield Receivables Corp., 5.300%, 5/13/96 5,000 4,969
Siemens Corp., 5.180%, 4/11/96 3,500 3,495
Statoil, 5.320%, 4/23/96 4,000 3,986
--------
Total Short-Term Notes
(Cost $101,114) 101,114
--------
Total Investments--100.6%
(Cost $101,114) 101,114
--------
Other Assets and Liabilities, Net--(0.6%) (641)
--------
Total Net Assets--100.0% $100,473
========
</TABLE>
Semi-Annual Report See accompanying notes/55
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights Selected Per Share Data for the Year or Period Ended:
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Income Fund Class A
-------------------------------------------------------------------------------------------
3/31/96 2/1/91-
(unaudited) 9/30/95 9/30/94 9/30/93 9/30/92 9/30/91
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $14.14 $12.50 $12.88 $10.57 $9.92 $8.38
-------------------------------------------------------------------------------------------
Income From Investment Operations:
Net Investment Income 0.12 0.36 0.34 0.33 0.34 0.28
Net Gains or Losses on Securities
(both realized and unrealized) 1.58 1.61 (0.17) 2.30 0.71 1.54
-------------------------------------------------------------------------------------------
Total From Investment Operations 1.70 1.97 0.17 2.63 1.05 1.82
-------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (0.17) (0.33) (0.33) (0.32) (0.40) (0.28)
Distributions (from capital gain) (0.78) 0.00 (0.22) 0.00 0.00 0.00
-------------------------------------------------------------------------------------------
Total Distributions (0.95) (0.33) (0.55) (0.32) (0.40) (0.28)
-------------------------------------------------------------------------------------------
Net Asset Value, End of Period $14.89 $14.14 $12.50 $12.88 $10.57 $9.92
===========================================================================================
Total Return (without sales charge) 12.4% 16.1% 1.4% 25.3% 10.7% 34.8%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $15,542 $12,933 $14,942 $6,328 $2,593 $15
Ratio of Expenses to Average Net
Assets 1.3%* 1.3% 1.3% 1.3% 1.4% 1.6%*
Ratio of Net Investment Income to
Average Net Assets 1.7%* 2.9% 2.7% 2.9% 3.3% 4.4%*
Portfolio Turnover Rate 102.6% 176.9% 174.9% 167.9% 149.0% 142.7%
Average Commission Rate $0.07
<CAPTION>
Equity Income Fund Class B
------------------------------
3/31/96 5/22/95-
(unaudited) 9/30/95
------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $14.13 $12.55
------------------------------
Income From Investment Operations:
Net Investment Income 0.05 0.11
Net Gains or Losses on Securities
(both realized and unrealized) 1.60 1.55
------------------------------
Total From Investment Operations 1.65 1.66
------------------------------
Less Distributions:
Dividends (from net investment income) (0.07) (0.08)
Distributions (from capital gain) (0.78) 0.00
------------------------------
Total Distributions (0.85) (0.08)
------------------------------
Net Asset Value, End of Period $14.93 $14.13
==============================
Total Return (without sales charge) 12.0% 13.3%
- -----------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------
Net Assets, End of Period (in 000s) $5,470 $1,760
Ratio of Expenses to Average Net
Assets 2.0%* 2.1%*
Ratio of Net Investment Income to
Average Net Assets 1.0%* 2.2%*
Portfolio Turnover Rate 102.6% 176.9%
Average Commission Rate $0.07
<CAPTION>
Equity Income Fund Class C
--------------------------------------------------------------------------------------
3/31/96
(unaudited) 9/30/95 9/30/94 9/30/93 9/30/92 9/30/91
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $14.09 $12.47 $12.85 $10.56 $9.91 $8.16
--------------------------------------------------------------------------------------
Income From Investment Operations:
Net Investment Income 0.07 0.27 0.24 0.25 0.29 0.36
Net Gains or Losses on Securities
(both realized and unrealized) 1.58 1.59 (0.16) 2.29 0.68 1.75
--------------------------------------------------------------------------------------
Total From Investment Operations 1.65 1.86 0.08 2.54 0.97 2.11
--------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (0.10) (0.24) (0.24) (0.25) (0.32) (0.36)
Distributions (from capital gain) (0.78) 0.00 (0.22) 0.00 0.00 0.00
--------------------------------------------------------------------------------------
Total Distributions (0.88) (0.24) (0.46) (0.25) (0.32) (0.36)
--------------------------------------------------------------------------------------
Net Asset Value, End of Period $14.86 $14.09 $12.47 $12.85 $10.56 $9.91
======================================================================================
Total Return (without sales charge) 12.0% 15.2% 0.7% 24.4% 9.9% 26.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $198,853 $174,316 $178,892 $94,247 $45,101 $22,651
Ratio of Expenses to Average Net
Assets 2.0%* 2.1% 2.0% 2.1% 2.1% 2.2%
Ratio of Net Investment Income to
Average Net Assets 1.0%* 2.1% 2.0% 2.2% 2.7% 4.2%
Portfolio Turnover Rate 102.6% 176.9% 174.9% 167.9% 149.0% 142.7%
Average Commission Rate $0.07
</TABLE>
*Annualized
<TABLE>
<CAPTION>
Value Fund Class A Class B Class C
--------------------- ---------------------- ----------------------
3/31/96 6/27/95- 3/31/96 6/27/95- 3/31/96 6/27/95-
(unaudited) 9/30/95 (unaudited) 9/30/95 (unaudited) 9/30/95
--------------------- ---------------------- ----------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $10.68 $10.00 $10.68 $10.00 $10.68 $10.00
--------------------- ---------------------- ----------------------
Income From Investment Operations:
Net Investment Income 0.03 0.07 0.01 0.05 0.01 0.05
Net Gains or Losses on Securities
(both realized and unrealized) 1.23 0.68 1.21 0.68 1.21 0.68
--------------------- ---------------------- ----------------------
Total From Investment Operations 1.26 0.75 1.22 0.73 1.22 0.73
--------------------- ---------------------- ----------------------
Less Distributions:
Dividends (from net investment income) (0.04) (0.06) (0.02) (0.04) (0.02) (0.04)
Distributions (from capital gain) (0.07) 0.00 (0.06) 0.00 (0.06) 0.00
Return of capital distribution 0.00 (0.01) 0.00 (0.01) 0.00 (0.01)
--------------------- ---------------------- ----------------------
Total Distributions (0.11) (0.07) (0.08) (0.05) (0.08) (0.05)
--------------------- ---------------------- ----------------------
Net Asset Value, End of Period $11.83 $10.68 $11.82 $10.68 $11.82 $10.68
===================== ====================== ======================
Total Return (without sales charge) 11.8% 7.5% 11.4% 7.3% 11.4% 7.3%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $6,634 $2,492 $11,297 $3,975 $22,309 $6,643
Ratio of Expenses to Average Net Assets 1.4%* 1.3%* 2.1%* 2.1%* 2.1%* 2.0%*
Ratio of Net Investment Income to
Average Net Assets 2.2%* 2.7%* 1.5%* 1.9%* 1.5%* 1.9%*
Portfolio Turnover Rate 19.1% 0.5% 19.1% 0.5% 19.1% 0.5%
Average Commission Rate $0.06 $0.06 $0.06
</TABLE>
*Annualized
56/PIMCO Advisors Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights Selected Per Share Data for the Year or Period Ended:
- ------------------------------------------------------------------------------------------------------------------------------------
Growth Fund Class A
----------------------------------------------------------------------------------------------------
3/31/96 10/26/90-
(unaudited) 9/30/95 9/30/94 9/30/93 9/30/92 9/30/91
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $25.73 $22.01 $23.64 $20.76 $20.63 $16.99
----------------------------------------------------------------------------------------------------
Income From
Investment Operations:
Net Investment
Income (Loss) 0.03 0.12 0.12 0.09 0.14 0.21
Net Gains or Losses
on Securities (both
realized and unrealized) 2.18 4.79 0.12 3.53 1.38 5.28
----------------------------------------------------------------------------------------------------
Total From
Investment Operations 2.21 4.91 0.24 3.62 1.52 5.49
----------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net
investment income) 0.00 0.00 0.00 0.00 (0.14) 0.00
Distributions
(from capital gain) (2.93) (1.19) (1.87) (0.74) (1.25) (1.66)
----------------------------------------------------------------------------------------------------
Total Distributions (2.93) (1.19) (1.87) (0.74) (1.39) (1.85)
----------------------------------------------------------------------------------------------------
Net Asset Value,
End of Period $25.01 $25.73 $22.01 $23.64 $20.76 $20.63
====================================================================================================
Total Return
(without sales charge) 9.3% 23.7% 1.3% 17.7% 7.7% 38.6%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets,
End of Period (in 000s) $140,999 $134,819 $107,269 $97,509 $71,209 $17,064
Ratio of Expenses to
Average Net Assets 1.1%* 1.1% 1.1% 1.1% 1.1% 1.2%*
Ratio of Net Investment
Income to
Average Net Assets 0.3%* 0.5% 0.6% 0.4% 0.7% 0.9%*
Portfolio Turnover Rate 36.3% 110.6% 115.3% 109.9% 92.3% 95.3%
Average Commission Rate $0.05
*Annualized
<CAPTION>
Growth Fund Class B
-------------------------------------
3/31/96 5/23/95-
(unaudited) 9/30/95
-------------------------------------
<S> <C> <C>
Net Asset Value,
Beginning of Period $24.94 $22.63
-------------------------------------
Income From
Investment Operations:
Net Investment
Income (Loss) (0.03) (0.03)
Net Gains or Losses
on Securities (both
realized and unrealized) 2.07 2.34
-------------------------------------
Total From
Investment Operations 2.04 2.31
-------------------------------------
Less Distributions:
Dividends (from net
investment income) 0.00 0.00
Distributions
(from capital gain) (2.93) 0.00
-------------------------------------
Total Distributions (2.93) 0.00
-------------------------------------
Net Asset Value,
End of Period $24.05 $24.94
=====================================
Total Return
(without sales charge) 8.8% 10.2%
- ---------------------------------------------------------------------
Ratios/Supplemental Data
- ---------------------------------------------------------------------
Net Assets,
End of Period (in 000s) $22,133 $7,671
Ratio of Expenses to
Average Net Assets 1.9%* 1.9%*
Ratio of Net Investment
Income to
Average Net Assets (0.5)%* (0.4)%*
Portfolio Turnover Rate 36.3% 110.6%
Average Commission Rate $0.05
<CAPTION>
Growth Fund Class C
----------------------------------------------------------------------------------------------------
3/31/96
(unaudited) 9/30/95 9/30/94 9/30/93 9/30/92 9/30/91
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $24.94 $21.52 $23.32 $20.64 $20.54 $16.93
----------------------------------------------------------------------------------------------------
Income From
Investment Operations:
Net Investment
Income (Loss) (0.05) (0.04) (0.04) (0.07) (0.01) 0.12
Net Gains or Losses
on Securities (both
realized and unrealized) 2.09 4.65 0.11 3.49 1.37 5.32
----------------------------------------------------------------------------------------------------
Total From
Investment Operations 2.04 4.61 0.07 3.42 1.36 5.44
----------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net
investment income) 0.00 0.00 0.00 0.00 (0.01) (0.17)
Distributions
(from capital gain) (2.93) (1.19) (1.87) (0.74) (1.25) (1.66)
----------------------------------------------------------------------------------------------------
Total Distributions (2.93) (1.19) (1.87) (0.74) (1.26) (1.83)
----------------------------------------------------------------------------------------------------
Net Asset Value,
End of Period $24.05 $24.94 $21.52 $23.32 $20.64 $20.54
====================================================================================================
Total Return
(without sales charge) 8.8% 22.8% 0.5% 16.9% 6.9% 35.1%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets,
End of Period (in 000s) $1,390,702 $1,290,152 $1,085,427 $1,077,490 $853,121 $564,398
Ratio of Expenses to
Average Net Assets 1.9%* 1.9% 1.9% 1.9% 1.9% 1.8%
Ratio of Net Investment
Income to
Average Net Assets (0.5)%* (0.2)% (0.2)% (0.3)% (0.1)% 0.6%
Portfolio Turnover Rate 36.3% 110.6% 115.3% 109.9% 92.3% 95.3%
Average Commission Rate $0.05
</TABLE>
*Annualized
<TABLE>
<CAPTION>
Target Fund Class A
-----------------------------------------------------------
3/31/96 12/17/92-
(unaudited) 9/30/95 9/30/94 9/30/93
-----------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $16.40 $13.13 $12.72 $10.00
-----------------------------------------------------------
Income From Investment Operations:
Net Investment Loss (0.03) (0.02) (0.04) (0.02)
Net Gains or Losses on Securities
(both realized and unrealized) 1.36 3.45 0.57 2.74
-----------------------------------------------------------
Total From Investment Operations 1.33 3.43 0.53 2.72
-----------------------------------------------------------
Less Distributions:
Distributions (from capital gain) (1.78) (0.16) (0.12) 0.00
-----------------------------------------------------------
Net Asset Value, End of Period $15.95 $16.40 $13.13 $12.72
===========================================================
Total Return (without sales charge) 8.6% 26.5% 4.2% 27.2%
- ----------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $138,621 $121,915 $90,527 $48,787
Ratio of Expenses to Average Net
Assets 1.2%* 1.2% 1.2% 1.3%*
Ratio of Net Investment Income to
Average Net Assets (0.4)%* (0.1)% (0.3)% (0.3)%*
Portfolio Turnover Rate 75.3% 128.3% 103.5% 76.0%
Average Commission Rate $0.05
<CAPTION>
Class B
---------------------------------
3/31/96 5/22/95-
(unaudited) 9/30/95
---------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $16.06 $13.93
---------------------------------
Income From Investment Operations:
Net Investment Loss (0.05) (0.05)
Net Gains or Losses on Securities
(both realized and unrealized) 1.28 2.18
Total From Investment Operations 1.23 2.13
---------------------------------
Less Distributions:
Distributions (from capital gain) (1.78) 0.00
---------------------------------
Net Asset Value, End of Period $15.51 $16.06
=================================
Total Return (without sales charge) 8.1% 15.3%
- ------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $21,699 $7,554
Ratio of Expenses to Average Net
Assets 2.0%* 2.0%*
Ratio of Net Investment Income to
Average Net Assets (1.1)%* (0.9)%*
Portfolio Turnover Rate 75.3% 128.3%
Average Commission Rate $0.05
<CAPTION>
Class C
---------------------------------------------------------------
3/31/96 12/17/92-
(unaudited) 9/30/95 9/30/94 9/30/93
---------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $16.05 $12.95 $12.65 $10.00
---------------------------------------------------------------
Income From Investment Operations:
Net Investment Loss (0.08) (0.12) (0.14) (0.09)
Net Gains or Losses on Securities
(both realized and unrealized) 1.32 3.38 0.56 2.74
---------------------------------------------------------------
Total From Investment Operations 1.24 3.26 0.42 2.65
---------------------------------------------------------------
Less Distributions:
Distributions (from capital gain) (1.78) (0.16) (0.12) 0.00
---------------------------------------------------------------
Net Asset Value, End of Period $15.51 $16.05 $12.95 $12.65
===============================================================
Total Return (without sales charge) 8.1% 25.6% 3.4% 26.5%
- -------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $873,091 $780,355 $556,043 $298,238
Ratio of Expenses to Average Net
Assets 2.0%* 2.0% 2.0% 2.0%*
Ratio of Net Investment Income to
Average Net Assets (1.1)%* (0.9)% (1.1)% (1.0)%*
Portfolio Turnover Rate 75.3% 128.3% 103.5% 76.0%
Average Commission Rate $0.05
</TABLE>
*Annualized
Semi-Annual Report See accompanying notes/57
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights Selected Per Share Data for the Year or Period Ended:
- ------------------------------------------------------------------------------------------------------------------------------------
Discovery Fund Class A Class B Class C
-------------------------- ----------------------------- ---------------------------------
3/31/96 6/27/95- 3/31/96 6/27/95- 3/31/96 6/27/95-
(unaudited) 9/30/95 (unaudited) 9/30/95 (unaudited) 9/30/95
-------------------------- ----------------------------- ---------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $10.89 $10.00 $10.86 $10.00 $10.86 $10.00
-------------------------- ----------------------------- ---------------------------------
Income From Investment Operations:
Net Investment Income (Loss) 0.04 0.01 0.00 (0.01) 0.00 (0.01)
Net Gains or Losses on Securities
(both realized and unrealized) 0.03 0.88 0.03 0.87 0.03 0.87
-------------------------- ----------------------------- ---------------------------------
Total From Investment Operations 0.07 0.89 0.03 0.86 0.03 0.85
-------------------------- ----------------------------- ---------------------------------
Net Asset Value, End of Period $10.96 $10.89 $10.89 $10.86 $10.89 $10.85
========================== ============================= =================================
Total Return (without sales charge) 0.6% 8.9% 0.3% 8.6% 0.3% 8.6%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $9,951 $7,658 $17,467 $10,832 $32,671 $20,260
Ratio of Expenses to Average Net
Assets 1.4%* 1.3%* 2.2%* 2.0%* 2.2%* 2.0%*
Ratio of Net Investment Income to
Average Net Assets 0.7%* 0.2%* 0.0%* (0.5)%* 0.0%* (0.5)%*
Portfolio Turnover Rate 60.0% 34.9% 60.0% 34.9% 60.0% 34.9%
Average Commission Rate $0.05 $0.05 $0.05
</TABLE>
*Annualized
<TABLE>
<CAPTION>
Opportunity Fund Class A
---------------------------------------------------------------------------------------------
3/31/96 12/17/90-
(unaudited) 9/30/95 9/30/94 9/30/93 9/30/92 9/30/91
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $39.08 $28.87 $33.43 $19.84 $17.95 $11.78
---------------------------------------------------------------------------------------------
Income From Investment Operations:
Net Investment Loss (0.04) (0.11) (0.17) (0.15) (0.04) (0.03)
Net Gains or Losses on Securities
(both realized and unrealized) 2.61 11.19 (2.02) 14.00 3.61 6.20
---------------------------------------------------------------------------------------------
Total From Investment Operations 2.57 11.08 (2.19) 13.85 3.57 6.17
---------------------------------------------------------------------------------------------
Less Distributions:
Distributions (from capital gain) (7.73) (0.87) (2.26) (0.26) (1.68) 0.00
Return of capital distribution 0.00 0.00 (0.11) 0.00 0.00 0.00
---------------------------------------------------------------------------------------------
Total Distributions (7.73) (0.87) (2.37) (0.26) (1.68) 0.00
---------------------------------------------------------------------------------------------
Net Asset Value, End of Period $33.92 $39.08 $28.87 $33.43 $19.84 $17.95
=============================================================================================
Total Return (without sales charge) 7.5% 39.7% (6.7)% 70.4% 21.6% 70.9%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $118,623 $120,830 $95,261 $106,666 $22,454 $1,623
Ratio of Expenses to Average Net
Assets 1.1%* 1.2% 1.1% 1.2% 1.3% 1.4%*
Ratio of Net Investment Income to
Average Net Assets (0.2)%* (0.4)% (0.6)% (0.6)% (0.2)% (0.5)%*
Portfolio Turnover Rate 44.6% 101.6% 78.4% 105.4% 93.8% 144.6%
Average Commission Rate $0.04
<CAPTION>
Opportunity Fund Class C
---------------------------------------------------------------------------------------------
3/31/96
(unaudited) 9/30/95 9/30/94 9/30/93 9/30/92 9/30/91
---------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $37.64 $28.04 $32.77 $19.60 $17.87 $11.93
---------------------------------------------------------------------------------------------
Income From Investment Operations:
Net Investment Loss (0.15) (0.34) (0.38) (0.34) (0.18) (0.11)
Net Gains or Losses on Securities
(both realized and unrealized) 2.49 10.81 (1.98) 13.77 3.59 6.42
---------------------------------------------------------------------------------------------
Total From Investment Operations 2.34 10.47 (2.36) 13.43 3.41 6.31
---------------------------------------------------------------------------------------------
Less Distributions:
Distributions (from capital gain) (7.73) (0.87) (2.26) (0.26) (1.68) (0.37)
Return of capital distribution 0.00 0.00 (0.11) 0.00 0.00 0.00
---------------------------------------------------------------------------------------------
Total Distributions (7.73) (0.87) (2.37) (0.26) (1.68) (0.37)
---------------------------------------------------------------------------------------------
Net Asset Value, End of Period $32.25 $37.64 $28.04 $32.77 $19.60 $17.87
=============================================================================================
Total Return (without sales charge) 7.1% 38.6% (7.4)% 69.1% 20.8% 54.4%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $736,735 $715,191 $553,460 $618,193 $179,081 $58,656
Ratio of Expenses to Average Net
Assets 1.9%* 1.9% 1.9% 2.0% 2.0% 2.0%
Ratio of Net Investment Income to
Average Net Assets (1.0)%* (1.1)% (1.4)% (1.3)% (1.0)% (0.8)%
Portfolio Turnover Rate 44.6% 101.6% 78.4% 105.4% 93.8% 144.6%
Average Commission Rate $0.04
</TABLE>
*Annualized
58/PIMCO Advisors Funds See accompanying notes
<PAGE>
Financial Highlights Selected Per Share Data for the Year or Period Ended:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Innovation Fund Class A Class B Class C
--------------------------- --------------------------- --------------------------
3/31/96 12/22/94- 3/31/96 5/22/95- 3/31/96 12/22/94-
(unaudited) 9/30/95 (unaudited) 9/30/95 (unaudited) 9/30/95
--------------------------- --------------------------- --------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $14.74 $10.00 $14.66 $11.81 $14.65 $10.00
--------------------------- --------------------------- --------------------------
Income From Investment Operations:
Net Investment Loss (0.05) (0.06)(1) (0.08) (0.08) (0.09) (0.13)(1)
Net Gains or Losses on Securities
(both realized and unrealized) 0.20 4.80 0.18 2.93 0.20 4.78
--------------------------- --------------------------- --------------------------
Total From Investment Operations 0.15 4.74 0.10 2.85 0.11 4.65
--------------------------- --------------------------- --------------------------
Less Distributions:
Distributions (from capital gain) (0.35) 0.00 (0.35) 0.00 (0.35) 0.00
--------------------------- --------------------------- --------------------------
Net Asset Value, End of Period $14.54 $14.74 $14.41 $14.66 $14.41 $14.65
=========================== =========================== ==========================
Total Return (without sales charge) 1.0% 47.4% 0.6% 24.1% 0.7% 46.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $33,178 $28,239 $14,332 $6,509 $84,155 $63,952
Ratio of Expenses to Average Net
Assets 1.4%* 1.4%* 2.1%* 2.3%* 2.1%* 2.2%*
Ratio of Net Investment Income to
Average Net Assets (0.8)%* (0.6)%* (1.5)%* (1.7)%* (1.5)%* (1.4)%*
Portfolio Turnover Rate 67.0% 86.1% 67.0% 86.1% 6.07% 86.1
Average Commission Rate $0.05 $0.05 $0.05
</TABLE>
(1)Reflecting voluntary waiver of investment advisory fee of $4,666 (0.00 per
share) by the Manager as more fully described in Note 3(a) to the Financial
Statements.
*Annualized
<TABLE>
<CAPTION>
International Fund Class A
---------------------------------------------------------------------------------------------
3/31/96 2/1/91-
(unaudited) 9/30/95 9/30/94 9/30/93 9/30/92 9/30/91
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $12.19 $12.92 $12.17 $10.04 $10.54 $9.48
---------------------------------------------------------------------------------------------
Income From Investment Operations:
Net Investment Income (Loss) 0.04 0.07 0.04 0.07 0.05 0.02
Net Gains or Losses on Securities
(both realized and unrealized) 0.70 (0.56) 0.94 2.80 (0.37) 1.04
---------------------------------------------------------------------------------------------
Total From Investment Operations 0.74 (0.49) 0.98 2.87 (0.32) 1.06
---------------------------------------------------------------------------------------------
Less Distributions:
Distributions (from capital gain) 0.00 (0.24) (0.23) (0.74) (0.18) 0.00
---------------------------------------------------------------------------------------------
Net Asset Value, End of Period $12.93 $12.19 $12.92 $12.17 $10.04 $10.54
=============================================================================================
Total Return (without sales charge) 6.1% (3.7)% 8.2% 30.4% (3.1)% 17.3%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $20,464 $17,951 $23,289 $11,992 $471 $22
Ratio of Expenses to Average Net
Assets 2.2%* 1.5% 1.4% 1.4% 1.9% 1.9%*
Ratio of Net Investment Income to
Average Net Assets (0.1)%* 0.6% 0.3% 0.6% 0.5% 0.7%*
Portfolio Turnover Rate 57.3% 169.8% 55.1% 67.6% 159.6% 107.1%
Average Commission Rate $0.00
<CAPTION>
International Fund Class B
---------------------------------
3/31/96 5/22/95-
(unaudited) 9/30/95
---------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $11.75 $11.30
---------------------------------
Income From Investment Operations:
Net Investment Income (Loss) (0.03)** 0.00
Net Gains or Losses on Securities
(both realized and unrealized) 0.71** 0.45
---------------------------------
Total From Investment Operations 0.68 0.45
---------------------------------
Less Distributions:
Distributions (from capital gain) 0.00 0.00
---------------------------------
Net Asset Value, End of Period $12.43 $11.75
=================================
Total Return (without sales charge) 5.8% 4.0%
- ------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $3,339 $503
Ratio of Expenses to Average Net
Assets 1.9%* 2.3%*
Ratio of Net Investment Income to
Average Net Assets (0.6)%* (0.1)%*
Portfolio Turnover Rate 57.3% 169.8%
Average Commission Rate $0.00
<CAPTION>
International Fund Class C
---------------------------------------------------------------------------------------------
3/31/96
(unaudited) 9/30/95 9/30/94 9/30/93 9/30/92 9/30/91
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $11.75 $12.56 $11.92 $9.92 $10.49 $10.04
---------------------------------------------------------------------------------------------
Income From Investment Operations:
Net Investment Income (Loss) (0.04) (0.02) (0.06) (0.01) (0.06) (0.08)
Net Gains or Losses on Securities
(both realized and unrealized) 0.71 (0.55) 0.93 2.75 (0.33) 1.76
---------------------------------------------------------------------------------------------
Total From Investment Operations 0.67 (0.57) 0.87 2.74 (0.39) 1.68
---------------------------------------------------------------------------------------------
Less Distributions:
Distributions (from capital gain) 0.00 (0.24) (0.23) (0.74) (0.18) (1.23)
---------------------------------------------------------------------------------------------
Net Asset Value, End of Period $12.42 $11.75 $12.56 $11.92 $9.92 $10.49
=============================================================================================
Total Return (without sales charge) 5.7% (4.5)% 7.4% 29.4% (3.8)% 18.3%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $213,600 $215,349 $294,492 $147,194 $28,299 $33,594
Ratio of Expenses to Average Net
Assets 1.9%* 2.2% 2.2% 2.2% 2.6% 2.6%
Ratio of Net Investment Income to
Average Net Assets (0.6)%* (0.2)% (0.5)% (0.1)% (0.6)% (0.2)%
Portfolio Turnover Rate 57.3% 169.8% 55.1% 67.6% 159.6% 107.1%
Average Commission Rate $0.00
</TABLE>
* Annualized
** Per share amounts based on average number of shares outstanding during the
period 10/1/95-3/31/96.
Semi-Annual Report See accompanying notes/59
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights Selected Per Share Data for the Year or Period Ended:
- ------------------------------------------------------------------------------------------------------------------------------
Precious Metals Fund Class A
----------------------------------------------------------------------------------------
3/31/96 2/1/91-
(unaudited) 9/30/95 9/30/94 9/30/93 9/30/92 9/30/91
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $12.33 $14.14 $10.32 $7.54 $7.51 $7.19
----------------------------------------------------------------------------------------
Income From Investment Operations:
Net Investment Income (Loss) 0.04 0.07 0.08 0.06 (0.01) (0.07)
Net Gains or Losses on Securities
(both realized and unrealized) 1.61 (1.88) 3.74 2.72 0.04 0.39
----------------------------------------------------------------------------------------
Total From Investment Operations 1.65 (1.81) 3.82 2.78 0.03 0.32
----------------------------------------------------------------------------------------
Net Asset Value, End of Period $13.98 $12.33 $14.14 $10.32 $7.54 $7.51
========================================================================================
Total Return (without sales charge) 13.3% (12.8)% 37.0% 36.9% 0.4% 6.8%
- ------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $7,940 $7,670 $11,229 $3,425 $668 $514
Ratio of Expenses to Average Net
Assets 1.3%* 1.4% 1.3% 1.4% 1.9% 2.1%*
Ratio of Net Investment Income
(Loss) to Average Net Assets 0.2%* 0.6% 0.6% 0.6% (0.1)% (1.4)%*
Portfolio Turnover Rate 8.9% 8.7% 11.0% 10.0% 29.6% 19.4%
Average Commission Rate $0.00
<CAPTION>
Precious Metals Fund Class B
---------------------------------
3/31/96 6/15/95-
(unaudited) 9/30/95
---------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $11.90 $11.61
---------------------------------
Income From Investment Operations:
Net Investment Income (Loss) (0.03)** (0.01)
Net Gains or Losses on Securities
(both realized and unrealized) 1.59** 0.30
---------------------------------
Total From Investment Operations 1.56 0.29
---------------------------------
Net Asset Value, End of Period $13.46 $11.90
=================================
Total Return (without sales charge) 13.0% 2.5%
- -----------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------
Net Assets, End of Period (in 000s) $1,469 $251
Ratio of Expenses to Average Net
Assets 2.4%* 2.2%*
Ratio of Net Investment Income
(Loss) to Average Net Assets (0.4)%* (0.2)%*
Portfolio Turnover Rate 8.9% 8.7%
Average Commission Rate $0.0
<CAPTION>
Precious Metals Fund Class C
------------------------------------------------------------------------------------------
3/31/96
(unaudited) 9/30/95 9/30/94 9/30/93 9/30/92 9/30/91
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $11.90 $13.75 $10.11 $7.44 $7.46 $9.40
------------------------------------------------------------------------------------------
Income From Investment Operations:
Net Investment Income (Loss) (0.04) (0.02) (0.02) (0.02) (0.06) (0.05)
Net Gains or Losses on Securities
(both realized and unrealized) 1.59 (1.83) 3.66 2.69 0.04 (1.89)
------------------------------------------------------------------------------------------
Total From Investment Operations 1.55 (1.85) 3.64 2.67 (0.02) (1.94)
------------------------------------------------------------------------------------------
Net Asset Value, End of Period $13.45 $11.90 $13.75 $10.11 $7.44 $7.46
==========================================================================================
Total Return (without sales charge) 13.0% (13.5)% 36.0% 35.9% (0.3)% (20.6)%
- --------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $45,861 $42,341 $62,825 $23,884 $6,633 $6,995
Ratio of Expenses to Average Net
Assets 2.1%* 2.2% 2.1% 2.2% 2.6% 2.4%
Ratio of Net Investment Income
(Loss) to Average Net Assets (0.5)%* (0.2)% (0.2)% (0.2)% (0.8)% (0.8)%
Portfolio Turnover Rate 8.9% 8.7% 11.0% 10.0% 29.6% 19.4%
Average Commission Rate $0.0
</TABLE>
* Annualized
** Per share amounts based on average number of shares outstanding during the
period 10/1/95-3/31/96.
<TABLE>
<CAPTION>
Global Income Fund Class A Class B Class C
----------- ----------- -----------
10/1/95- 10/1/95- 10/1/95-
3/31/96 3/31/96 3/31/96
(unaudited) (unaudited) (unaudited)
----------- ----------- -----------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $10.00 $10.00 $10.00
------ ------ ------
Income From Investment Operations:
Net Investment Income 0.26 0.28 0.28
Net Gains or Losses on Securities
(both realized and unrealized) 0.42 0.40 0.40
------ ------ ------
Total From Investment Operations 0.68 0.68 0.68
------ ------ ------
Less Distributions:
Dividends (from net investment income) (0.28) (0.28) (0.28)
------ ------ ------
Net Asset Value, End of Period $10.40 $10.40 $10.40
====== ====== ======
Total Return (without sales charge) 6.9% 6.8% 6.8%
- --------------------------------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $6,939 $1,768 $1,961
Ratio of Expenses to Average Net
Assets 4.0%* 3.7%* 3.8%*
Ratio of Net Investment Income to
Average Net Assets 11.2%* 8.2%* 9.0%*
Portfolio Turnover Rate 500.5% 500.5% 500.5%
</TABLE>
(1) Reflecting voluntary waiver of investment advisory fee of $12,041 (0.01 per
share) by the Manager as more fully described in Note 3(a) to the Financial
Statements.
* Annualized
60/PIMCO Advisors Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights Selected Per Share Data for the Year or Period Ended:
- ----------------------------------------------------------------------------------------------------------------------------
High Income Fund Class A
-----------------------------------------------------------------------------------------------
3/31/96 2/6/91-
(unaudited) 9/30/95 9/30/94 9/30/93 9/30/92 9/30/91
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $7.94 $7.56 $8.78 $8.68 $8.36 $8.56
-----------------------------------------------------------------------------------------------
Income From
Investment Operations:
Net Investment Income 0.33 0.65 0.68 0.75 0.79 0.57
Net Gains or
Losses on Securities
(both realized
and unrealized) 0.05 0.39 (1.23) 0.10 0.29 (0.14)
-----------------------------------------------------------------------------------------------
Total From
Investment Operations 0.38 1.04 (0.55) 0.85 1.08 0.43
-----------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net
investment income) (0.34) (0.66) (0.67) (0.75) (0.76) (0.63)
-----------------------------------------------------------------------------------------------
Net Asset Value,
End of Period $7.98 $7.94 $7.56 $8.78 $8.68 $8.36
===============================================================================================
Total Return
(without sales charge) 4.9% 14.5% (6.5)% 10.3% 13.5% 8.2%
- ----------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------
Net Assets, End
of Period (in 000s) $19,123 $7,791 $4,336 $5,675 $4,257 $1,456
Ratio of Expenses to
Average Net Assets 1.2%* 1.1% 1.1% 1.2% 1.2% 1.2%*
Ratio of Net
Investment Income to
Average Net Assets 8.7%* 8.5% 8.4% 8.7% 9.3% 10.5%*
Portfolio Turnover Rate 20.5% 162.5% 133.9% 124.1% 162.8% 124.0%
<CAPTION>
High Income Fund Class B
---------------------------------
3/31/96 5/22/95-
(unaudited) 9/30/95
---------------------------------
<S> <C> <C>
Net Asset Value,
Beginning of Period $7.92 $7.75
---------------------------------
Income From
Investment Operations:
Net Investment Income 0.31 0.22
Net Gains or
Losses on Securities
(both realized
and unrealized) 0.05 0.16
---------------------------------
Total From
Investment Operations 0.36 0.38
---------------------------------
Less Distributions:
Dividends (from net
investment income) (0.31) (0.21)
---------------------------------
Net Asset Value,
End of Period $7.97 $7.92
=================================
Total Return
(without sales charge) 4.6% 4.9%
- --------------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------------
Net Assets, End
of Period (in 000s) $17,193 $4,552
Ratio of Expenses to
Average Net Assets 1.9%* 1.9%*
Ratio of Net
Investment Income to
Average Net Assets 8.1%* 7.8%*
Portfolio Turnover Rate 20.5% 162.5%
<CAPTION>
High Income Fund Class C
------------------------------------------------------------------------------------------------
3/31/96
(unaudited) 9/30/95 9/30/94 9/30/93 9/30/92 9/30/91
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $7.88 $7.51 $8.75 $8.65 $8.36 $8.55
------------------------------------------------------------------------------------------------
Income From
Investment Operations:
Net Investment Income 0.31 0.58 0.52 0.68 0.74 0.85
Net Gains or
Losses on Securities
(both realized
and unrealized) 0.04 0.39 (1.26) 0.10 0.25 (0.17)
------------------------------------------------------------------------------------------------
Total From
Investment Operations 0.35 0.97 (0.64) 0.78 0.99 0.68
------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net
investment income) (0.31) (0.60) (0.60) (0.68) (0.70) (0.87)
------------------------------------------------------------------------------------------------
Net Asset Value,
End of Period $7.92 $7.88 $7.51 $8.75 $8.65 $8.36
================================================================================================
Total Return
(without sales charge) 4.5% 13.5% (7.5)% 9.5% 12.4% 8.5%
- -----------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets, End
of Period (in 000s) $178,954 $157,507 $179,274 $255,266 $242,160 $270,622
Ratio of Expenses to
Average Net Assets 1.9%* 1.9% 1.9% 2.0% 1.9% 1.9%
Ratio of Net
Investment Income to
Average Net Assets 7.9%* 7.7% 7.7% 8.0% 8.7% 10.1%
Portfolio Turnover Rate 20.5% 162.5% 133.9% 124.1% 162.8% 124.0%
</TABLE>
* Annualized
<TABLE>
<CAPTION>
Total Return Income Fund Class A Class B Class C
--------------------------- --------------------------- -----------------------------
3/31/96 12/22/94- 3/31/96 5/22/95- 3/31/96 12/22/94-
(unaudited) 9/30/95 (unaudited) 9/30/95 (unaudited) 9/30/95
--------------------------- --------------------------- -----------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $10.70 $10.00 $10.73 $10.48 $10.70 $10.00
--------------------------- --------------------------- -----------------------------
Income From Investment Operations:
Net Investment Income 0.26 0.41 0.22 0.16 0.22 0.35
Net Gains or Losses on Securities
(both realized and unrealized) 0.01 0.68 0.01 0.24 0.00 0.69
--------------------------- --------------------------- -----------------------------
Total From Investment Operations 0.27 1.09 0.23 0.40 0.22 1.04
--------------------------- --------------------------- -----------------------------
Less Distributions:
Dividends (from net investment income) (0.27) (0.39) (0.23) (0.15) (0.23) (0.34)
Distributions (from capital gain) (0.30) 0.00 (0.30) 0.00 (0.30) 0.00
--------------------------- --------------------------- -----------------------------
Total Distributions (0.57) (0.39) (0.53) (0.15) (0.53) (0.34)
--------------------------- --------------------------- -----------------------------
Net Asset Value, End of Period $10.40 $10.70 $10.43 $10.73 $10.39 $10.70
=========================== =========================== =============================
Total Return (without sales charge) 2.5% 11.1% 2.1% 3.8% 2.0% 10.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $51,441 $37,714 $32,182 $8,805 $80,405 $45,631
Ratio of Expenses to Average Net
Assets 1.1%* 1.2%* 1.8%* 2.0%* 1.8%* 2.0%*
Ratio of Net Investment Income to
Average Net Assets 4.9%* 5.1%* 4.3%* 4.2%* 4.2%* 4.3%*
Portfolio Turnover Rate 131.5% 98.0% 131.5% 98.0% 131.5% 98.0%
</TABLE>
* Annualized
Semi-Annual Report See accompanying notes/61
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights Selected Per Share Data for the Year or Period Ended:
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Exempt Fund Class A
--------------------------------------------------------------------------------------------
3/31/96 3/14/91-
(unaudited) 9/30/95 9/30/94 9/30/93 9/30/92 9/30/91
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $11.83 $11.21 $12.74 $11.94 $11.53 $11.30
--------------------------------------------------------------------------------------------
Income From Investment Operations:
Net Investment Income 0.28 0.57 0.56 0.61 0.65 0.38
Net Gains or Losses on Securities
(both realized and unrealized) 0.02 0.63 (1.31) 1.02 0.42 0.23
--------------------------------------------------------------------------------------------
Total From Investment Operations 0.30 1.20 (0.75) 1.63 1.07 0.61
--------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (0.28) (0.58) (0.58) (0.64) (0.66) (0.38)
Distributions (from capital gain) 0.00 0.00 (0.20) (0.19) 0.00 0.00
--------------------------------------------------------------------------------------------
Total Distributions (0.28) (0.58) (0.78) (0.83) (0.66) (0.38)
--------------------------------------------------------------------------------------------
Net Asset Value, End of Period $11.85 $11.83 $11.21 $12.74 $11.94 $11.53
============================================================================================
Total Return (without sales charge) 2.5% 11.0% (6.1)% 14.2% 9.5% 10.4%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $4,042 $2,701 $2,726 $2,852 $2,295 $321
Ratio of Expenses to Average Net
Assets 1.1%* 1.1% 1.1% 1.1% 1.1% 1.1%*
Ratio of Net Investment Income to
Average Net Assets 4.7%* 5.0% 4.7% 5.0% 5.6% 5.8%*
Portfolio Turnover Rate 30.7% 35.0% 63.2% 55.9% 107.4% 119.0%
<CAPTION>
Tax Exempt Fund Class B
--------------------------------
3/31/96 5/30/95-
(unaudited) 9/30/95
--------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $11.84 $11.90
--------------------------------
Income From Investment Operations:
Net Investment Income 0.24** 0.16
Net Gains or Losses on Securities
(both realized and unrealized) 0.02** (0.07)
--------------------------------
Total From Investment Operations 0.26 0.09
--------------------------------
Less Distributions:
Dividends (from net investment income) (0.24) (0.15)
Distributions (from capital gain) 0.00 0.00
--------------------------------
Total Distributions (0.24) (0.15)
--------------------------------
Net Asset Value, End of Period $11.86 $11.84
================================
Total Return (without sales charge) 2.2% 0.8%
- ------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $1,501 $288
Ratio of Expenses to Average Net
Assets 1.9%* 1.9%*
Ratio of Net Investment Income to
Average Net Assets 4.0%* 4.0%*
Portfolio Turnover Rate 30.7% 35.0%
<CAPTION>
Tax Exempt Fund Class C
--------------------------------------------------------------------------------------------
3/31/96
(unaudited) 9/30/95 9/30/94 9/30/93 9/30/92 9/30/91
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $11.82 $11.21 $12.73 $11.94 $11.53 $10.97
--------------------------------------------------------------------------------------------
Income From Investment Operations:
Net Investment Income 0.23 0.48 0.47 0.52 0.58 0.62
Net Gains or Losses on Securities
(both realized and unrealized) 0.03 0.62 (1.30) 1.01 0.41 0.56
--------------------------------------------------------------------------------------------
Total From Investment Operations 0.26 1.10 (0.83) 1.53 0.99 1.18
--------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (0.24) (0.49) (0.49) (0.55) (0.58) (0.62)
Distributions (from capital gain) 0.00 0.00 (0.20) (0.19) 0.00 0.00
--------------------------------------------------------------------------------------------
Total Distributions (0.24) (0.49) (0.69) (0.74) (0.58) (0.62)
--------------------------------------------------------------------------------------------
Net Asset Value, End of Period $11.84 $11.82 $11.21 $12.73 $11.94 $11.53
============================================================================================
Total Return (without sales charge) 2.2% 10.1% (6.7)% 13.3% 8.8% 11.0%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $49,266 $54,224 $68,214 $81,475 $52,113 $46,663
Ratio of Expenses to Average Net
Assets 1.9%* 1.8% 1.8% 1.8% 1.8% 1.8%
Ratio of Net Investment Income to
Average Net Assets 3.9%* 4.3% 4.0% 4.2% 4.9% 5.5%
Portfolio Turnover Rate 30.7% 35.0% 63.2% 55.9% 107.4% 119.0%
</TABLE>
* Annualized
** Per share amounts based on average number of shares outstanding during the
period 10/1/95-3/31/96.
<TABLE>
<CAPTION>
U.S. Government Fund Class A
-------------------------------------------------------------------------------------------
3/31/96 1/3/91-
(unaudited) 9/30/95 9/30/94 9/30/93 9/30/92 9/30/91
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $9.16 $8.68 $9.71 $9.61 $9.46 $9.31
-------------------------------------------------------------------------------------------
Income From Investment Operations:
Net Investment Income 0.29 0.58 0.60 0.65 0.75 0.65
Net Gains or Losses on Securities
(both realized and unrealized) (0.15) 0.47 (1.03) 0.10 0.19 0.15
-------------------------------------------------------------------------------------------
Total From Investment Operations 0.14 1.05 (0.43) 0.75 0.94 0.80
-------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (0.30) (0.57) (0.60) (0.65) (0.79) (0.65)
-------------------------------------------------------------------------------------------
Net Asset Value, End of Period $9.00 $9.16 $8.68 $9.71 $9.61 $9.46
===========================================================================================
Total Return (without sales charge) 1.5% 12.6% (4.6)% 8.2% 10.3% 12.3%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $16,689 $16,248 $15,250 $19,939 $15,224 $3,983
Ratio of Expenses to Average Net
Assets 1.9%* 1.0% 1.0% 1.0% 1.0% 1.1%*
Ratio of Net Investment Income to
Average Net Assets 12.1%* 6.5% 6.5% 6.8% 7.8% 9.3%*
Portfolio Turnover Rate 66.2% 115.0% 121.0% 199.7% 156.4% 37.1%
U.S. Government Fund Class B
--------------------------------
3/31/96 6/2/95-
(unaudited) 9/30/95
--------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $9.15 $9.17
--------------------------------
Income From Investment Operations:
Net Investment Income 0.30 0.16
Net Gains or Losses on Securities
(both realized and unrealized) (0.19) (0.02)
--------------------------------
Total From Investment Operations 0.11 0.14
--------------------------------
Less Distributions:
Dividends (from net investment income) (0.27) (0.16)
--------------------------------
Net Asset Value, End of Period $8.99 $9.15
================================
Total Return (without sales charge) 1.1% 1.6%
- -------------------------------------------------------------------------
Ratios/Supplemental Data
- -------------------------------------------------------------------------
Net Assets, End of Period (in 000s) 4,084 $1,671
Ratio of Expenses to Average Net
Assets 2.5%* 1.8%*
Ratio of Net Investment Income to
Average Net Assets 10.2%* 5.6%*
Portfolio Turnover Rate 66.2% 115.0%
<CAPTION>
U.S. Government Fund Class C
-------------------------------------------------------------------------------------------
3/31/96
(unaudited) 9/30/95 9/30/94 9/30/93 9/30/92 9/30/91
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $9.13 $8.65 $9.68 $9.58 $9.45 $9.02
-------------------------------------------------------------------------------------------
Income From Investment Operations:
Net Investment Income 0.24 0.51 0.53 0.58 0.69 0.81
Net Gains or Losses on Securities
(both realized and unrealized) (0.14) 0.48 (1.03) 0.10 0.15 0.46
-------------------------------------------------------------------------------------------
Total From Investment Operations 0.10 0.99 (0.50) 0.68 0.84 1.27
-------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (0.27) (0.51) (0.53) (0.58) (0.71) (0.84)
-------------------------------------------------------------------------------------------
Net Asset Value, End of Period $8.96 $9.13 $8.65 $9.68 $9.58 $9.45
===========================================================================================
Total Return (without sales charge) 1.0% 11.8% (5.3)% 7.4% 9.2% 14.8%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $263,653 $287,086 $365,044 $533,288 $531,310 $429,796
Ratio of Expenses to Average Net
Assets 1.8%* 1.8% 1.7% 1.7% 1.8% 1.8%
Ratio of Net Investment Income to
Average Net Assets 5.0%* 5.8% 5.8% 6.1% 7.3% 8.8%
Portfolio Turnover Rate 66.2% 115.0% 121.0% 199.7% 156.4% 37.1%
</TABLE>
* Annualized
62/PIMCO Advisors Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights Selected Per Share Data for the Year or Period Ended:
- ------------------------------------------------------------------------------------------------------------------------------------
Short-Intermediate Fund Class A
-------------------------------------------------------------------------------------------
3/31/96 8/16/91-
(unaudited) 9/30/95 9/30/94 9/30/93 9/30/92 9/30/91
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $9.62 $9.37 $9.81 $9.96 $10.03 $10.00
-------------------------------------------------------------------------------------------
Income From Investment Operations:
Net Investment Income 0.26 0.59 0.47 0.48 0.60(2) 0.07(1)
Net Gains or Losses on Securities
(both realized and unrealized) 0.07 0.25 (0.43) (0.15) (0.04) 0.03
-------------------------------------------------------------------------------------------
Total From Investment Operations 0.33 0.84 0.04 0.33 0.56 0.10
-------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (0.29) (0.59) (0.48) (0.48) (0.62) (0.07)
Distributions (from capital gain) 0.00 0.00 0.00 0.00 (0.01) 0.00
-------------------------------------------------------------------------------------------
Total Distributions (0.29) (0.59) (0.48) (0.48) (0.63) (0.07)
-------------------------------------------------------------------------------------------
Net Asset Value, End of Period $9.66 $9.62 $9.37 $9.81 $9.96 $10.03
===========================================================================================
Total Return (without sales charge) 3.5% 9.3% 0.4% 3.4% 5.8% 8.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $49,869 $6,343 $4,913 $7,169 $13,535 $844
Ratio of Expenses to Average Net
Assets 1.0%* 1.0% 0.9% 1.0% 0.9% 0.4%*
Ratio of Net Investment Income to
Average Net Assets 5.5%* 6.3% 4.9% 4.9% 6.0% 5.3%*
Portfolio Turnover Rate 164.7% 173.4% 86.2% 112.7% 132.8% 114.6%
<CAPTION>
Short-Intermediate Fund Class B
---------------------------------
3/31/96 5/22/95-
(unaudited) 9/30/95
---------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $9.62 $9.49
---------------------------------
Income From Investment Operations:
Net Investment Income 0.19 0.18
Net Gains or Losses on Securities
(both realized and unrealized) 0.10 0.13
---------------------------------
Total From Investment Operations 0.29 0.31
---------------------------------
Less Distributions:
Dividends (from net investment income) (0.25) (0.18)
Distributions (from capital gain) 0.00 0.00
---------------------------------
Total Distributions (0.25) (0.18)
---------------------------------
Net Asset Value, End of Period $9.66 $9.62
=================================
Total Return (without sales charge) 3.1% 3.3%
- --------------------------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $2,010 $941
Ratio of Expenses to Average Net
Assets 2.1%* 1.7%*
Ratio of Net Investment Income to
Average Net Assets 5.4%* 5.4%*
Portfolio Turnover Rate 164.7% 173.4%
<CAPTION>
Short-Intermediate Fund Class C
-------------------------------------------------------------------------------------------
3/31/96 8/16/91-
(unaudited) 9/30/95 9/30/94 9/30/93 9/30/92 9/30/91
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $9.60 $9.37 $9.82 $9.97 $10.03 $10.00
-------------------------------------------------------------------------------------------
Income From Investment Operations:
Net Investment Income 0.23 0.54 0.42 0.44 0.55(2) 0.07(1)
Net Gains or Losses on Securities
(both realized and unrealized) 0.07 0.23 (0.44) (0.16) (0.03) 0.03
-------------------------------------------------------------------------------------------
Total From Investment Operations 0.30 0.77 (0.02) 0.28 0.52 0.10
-------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (0.27) (0.54) (0.43) (0.43) (0.57) (0.07)
Distributions (from capital gain) 0.00 0.00 0.00 0.00 (0.01) 0.00
-------------------------------------------------------------------------------------------
Total Distributions (0.27) (0.54) (0.43) (0.43) (0.58) (0.07)
-------------------------------------------------------------------------------------------
Net Asset Value, End of Period $9.63 $9.60 $9.37 $9.82 $9.97 $10.03
===========================================================================================
Total Return (without sales charge) 3.1% 8.5% (0.2)% 2.9% 5.4% 8.6%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $65,712 $65,608 $88,909 $123,857 $135,655 $32,052
Ratio of Expenses to Average Net
Assets 1.5%* 1.5% 1.4% 1.5% 1.3% 0.9%*
Ratio of Net Investment Income to
Average Net Assets 4.8%* 5.7% 4.4% 4.4% 5.5% 5.0%*
Portfolio Turnover Rate 164.7% 173.4% 86.2% 112.7% 132.8% 114.6%
</TABLE>
(1) Reflecting expense reduction of $2,957 (0.00 per share) and voluntary
waiver of investment advisory fee of $29,149 (0.01 per share) by the
Manager as more fully described in Note 3(a) to the Financial Statements.
(2) Reflecting voluntary waiver of investment advisory fee of $138,110 (0.02
per share) by the Manager as more fully described in Note 3(a) to the
Financial Statements.
* Annualized
<TABLE>
<CAPTION>
Money Market Fund Class A
--------------------------------------------------------------------------------------------
3/31/96 3/5/91-
(unaudited) 9/30/95 9/30/94 9/30/93 9/30/92 9/30/91
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
--------------------------------------------------------------------------------------------
Income From Investment Operations:
Net Investment Income 0.03(5) 0.05(4) 0.03(3) 0.03(2) 0.03(1) 0.03
Less Distributions:
Dividends (from net investment income) (0.03) (0.05) (0.03) (0.03) (0.03) (0.03)
--------------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
============================================================================================
Total Return (without sales charge) 2.6% 5.4% 3.0% 2.5% 3.2% 2.9%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $21,991 $13,553 $12,933 $3,729 $655 $275
Ratio of Expenses to Average Net
Assets 0.5%* 0.5% 0.8% 0.8% 0.9% 1.1%*
Ratio of Net Investment Income to
Average Net Assets 5.3%* 5.4% 3.4% 2.5% 3.2% 4.8%*
<CAPTION>
Money Market Fund Class B
--------------------------------
3/31/96 7/17/95-
(unaudited) 9/30/95
--------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00
--------------------------------
Income From Investment Operations:
Net Investment Income 0.02(5) 0.01
Less Distributions:
Dividends (from net investment income) (0.02) (0.01)
--------------------------------
Net Asset Value, End of Period $1.00 $1.00
================================
Total Return (without sales charge) 2.2% 0.7%
- ------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $293 $21
Ratio of Expenses to Average Net
Assets 0.5%* 1.5%*
Ratio of Net Investment Income to
Average Net Assets 1.7%* 4.8%*
<CAPTION>
Money Market Fund Class C
--------------------------------------------------------------------------------------------
3/31/96
(unaudited) 9/30/95 9/30/94 9/30/93 9/30/92 9/30/91
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
--------------------------------------------------------------------------------------------
Income From Investment Operations:
Net Investment Income 0.03(5) 0.05(4) 0.03(3) 0.03(2) 0.03(1) 0.05
Less Distributions:
Dividends (from net investment income) (0.03) (0.05) (0.03) (0.03) (0.03) (0.05)
--------------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
============================================================================================
Total Return (without sales charge) 2.6% 5.4% 3.0% 2.5% 3.4% 5.3%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in 000s) $78,189 $69,364 $84,064 $44,657 $50,761 $63,751
Ratio of Expenses to Average Net
Assets 0.5%* 0.5% 0.8% 0.8% 1.0% 1.5%
Ratio of Net Investment Income to
Average Net Assets 5.2%* 5.4% 3.2% 2.5% 3.4% 5.5%
</TABLE>
(1) Reflecting voluntary waiver of investment advisory fee of $31,042 (0.00 per
share) by the Manager as more fully described in Note 3(a) to the Financial
Statements.
(2) Reflecting voluntary waiver of investment advisory fee of $160,471 (0.00
per share) by the Manager as more fully described in Note 3(a) to the
Financial Statements.
(3) Reflecting voluntary waiver of investment advisory fee of $142,336 (0.00
per share) by the Manager as more fully described in Note 3(a) to the
Financial Statements.
(4) Reflecting voluntary waiver of investment advisory fee of $23,048 (0.00 per
share) by the Manager as more fully described in Note 3(a) to the Financial
Statements.
(5) Reflecting voluntary waiver of investment advisory fee of $66,699 (0.00 per
share) by the Manager as more fully described in Note 3(a) to the Financial
Statements.
* Annualized
Semi-Annual Report See accompanying notes/63
<PAGE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities March 31, 1996 (unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Equity
Amounts in thousands, except per share amounts Income Value Growth Target
Fund Fund Fund Fund
--------- -------- ----------- -----------
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Securities owned, at value (Note 2a) $ 228,999 $ 36,914 $ 1,570,062 $ 1,050,920
Foreign currency holdings, at value (Note 2b) 0 0 0
Forward foreign currency contracts purchased (Notes 2e and 7) 0 0
Cash 628 2,959 453 137
Dividends receivable 418 100 1,824 104
Interest receivable 150 7 0 0
Variation margin receivable 0 0 0 0
Receivable for investments sold 1,232 279 12,269 2,294
Receivable for Fund shares sold 375 376 1,692 2,060
Receivable for forward foreign currency contracts sold (Notes 2e and 7) 0 0 0 0
Other assets 26 44 167 110
--------------------------------------------------------
Total assets 231,828 40,679 1,586,467 1,055,625
--------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------------------------------------------
Payable for investments purchased 10,975 359 25,662 17,916
Variation margin payable 0 0 0 0
Payable for forward foreign currency contracts purchased (Notes 2e and 7) 0 0 0 0
Payable for Fund shares redeemed 488 3 1,761 1,717
Outstanding options written, at value (Notes 2c and 6) 0 0 2,171 435
Securities sold short 0 0 0 0
Forward foreign currency contracts sold, at value (Notes 2e and 7) 0 0 0 0
Accrued expenses:
Investment advisory fee 138 23 865 607
Distribution fee 129 20 898 558
Servicing fee 46 8 329 214
Other 187 26 947 767
--------------------------------------------------------
Total liabilities 11,963 439 32,633 22,214
--------------------------------------------------------
Net Assets $ 219,865 $ 40,240 $ 1,553,834 $ 1,033,411
========================================================
- ------------------------------------------------------------------------------------------------------------------------------------
Composition of Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Capital $ 176,876 $ 36,984 $ 1,199,432 $ 814,885
Undistributed (overdistributed) net investment income (37) 11 (2,990) (4,892)
Accumulated undistributed net realized gain (loss) 19,095 435 59,622 17,288
Net unrealized appreciation (depreciation) on securities 23,931 2,810 298,394 206,125
Net unrealized appreciation (depreciation) on foreign currency holdings 0 0 0 0
Net unrealized appreciation (depreciation) on forward
foreign currency contracts 0 0 0 0
Net unrealized appreciation (depreciation) on options written 0 0 (624) 5
Net unrealized appreciation (depreciation) on futures contracts 0 0 0 0
--------------------------------------------------------
Total net assets $ 219,865 $ 40,240 $ 1,553,834 $ 1,033,411
========================================================
- ------------------------------------------------------------------------------------------------------------------------------------
Calculation of Maximum Offering Price
- ------------------------------------------------------------------------------------------------------------------------------------
Class A Shares /Net Assets $ 15,542 $ 6,634 $ 140,999 $ 138,621
Shares Outstanding 1,044 561 5,637 8,694
Net asset value and redemption price per share ($/shares) $ 14.89 $ 11.83 $ 25.01 $ 15.95
Sales charge 0.87 0.69 1.46 0.93
--------------------------------------------------------
Maximum offering price $ 15.76 $ 12.52 $ 26.47 $ 16.88
========================================================
Class B Shares/Net Assets $ 5,470 $ 11,297 $ 22,133 $ 21,699
Shares Outstanding 366 955 920 1,399
Net asset value and offering price per share ($/shares) $ 14.93 $ 11.82 $ 24.05 $ 15.51
--------------------------------------------------------
Redemption price per share * * * *
========================================================
Class C Shares/Net Assets $ 198,853 $ 22,309 $ 1,390,702 $ 873,091
Shares Outstanding 13,381 1,888 57,830 56,298
Net asset value and offering price per share ($/shares) $ 14.86 $ 11.82 $ 24.05 $ 15.51
--------------------------------------------------------
Redemption price per share * * * *
========================================================
Cost of Investments Owned $ 205,068 $ 34,104 $ 1,271,668 $ 844,795
Cost of Foreign Currency Held 0 0 0 0
Cost of Foreign Currency Contracts Held 0 0 0 0
Cost of Foreign Currency Contracts Sold 0 0 0 0
Premiums Received on Written Options 0 0 1,547 440
Proceeds from Securitiies Sold Short 0 0 0 0
Sales charge-% of public offering price 5.50% 5.50% 5.50% 5.50%
<CAPTION>
Discovery Opportunity Innovation International
Fund Fund Fund Fund
--------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Securities owned, at value (Note 2a) $ 58,036 $ 861,638 $ 135,228 $ 227,457
Foreign currency holdings, at value (Note 2b) 0 0 0 6,313
Forward foreign currency contracts purchased (Notes 2e and 7) 0 0 0 42,264
Cash 2,667 339 227 6,363
Dividends receivable 28 80 0 692
Interest receivable 28 18 0 0
Variation margin receivable 0 0 34
Receivable for investments sold 328 9,222 0 2,935
Receivable for Fund shares sold 174 291 498 226
Receivable for forward foreign currency contracts sold (Notes 2e and 7) 0 0 0 70,334
Other assets 47 89 60 218
--------------------------------------------------------
Total assets 61,308 871,677 136,013 356,836
--------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------------------------------------------
Payable for investments purchased 1,009 4,764 3,689 5,654
Variation margin payable 0 0 0 13
Payable for forward foreign currency contracts purchased (Notes 2e and 7) 0 0 0 42,071
Payable for Fund shares redeemed 72 750 236 675
Outstanding options written, at value (Notes 2c and 6) 0 9,273 125 0
Securities sold short 0 0 0 0
Forward foreign currency contracts sold, at value (Notes 2e and 7) 0 0 0 70,274
Accrued expenses:
Investment advisory fee 37 505 81 158
Distribution fee 31 458 60 136
Servicing fee 12 177 27 50
Other 58 392 130 402
--------------------------------------------------------
Total liabilities 1,219 16,319 4,348 119,433
--------------------------------------------------------
Net Assets $ 60,089 $ 855,358 $ 131,665 $ 237,403
========================================================
- ------------------------------------------------------------------------------------------------------------------------------------
Composition of Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Capital $ 57,938 $ 572,381 $ 114,903 $ 222,283
Undistributed (overdistributed) net investment income 36 (3,615) (721) (2,253)
Accumulated undistributed net realized gain (loss) (4,284) 87,991 (890) 1,417
Net unrealized appreciation (depreciation) on securities 6,399 204,908 18,388 15,663
Net unrealized appreciation (depreciation) on foreign currency holdings 0 0 0 (11)
Net unrealized appreciation (depreciation) on forward
foreign currency contracts 0 0 0 253
Net unrealized appreciation (depreciation) on options written (6,307) (15) 0
Net unrealized appreciation (depreciation) on futures contracts 0 0 0 51
--------------------------------------------------------
Total net assets $ 60,089 $ 855,358 $ 131,665 $ 237,403
========================================================
- ------------------------------------------------------------------------------------------------------------------------------------
Calculation of Maximum Offering Price
- ------------------------------------------------------------------------------------------------------------------------------------
Class A Shares /Net Assets $ 9,951 $ 118,623 $ 33,178 $ 20,464
Shares Outstanding 908 3,497 2,281 1,583
Net asset value and redemption price per share ($/shares) $ 10.96 $ 33.92 $ 14.54 $ 12.93
Sales charge 0.64 1.97 0.85 0.75
--------------------------------------------------------
Maximum offering price $ 11.60 $ 35.89 $ 15.39 $ 13.68
========================================================
Class B Shares/Net Assets $ 17,467 $ 14,332 $ 3,339
Shares Outstanding 1,603 995 269
Net asset value and offering price per share ($/shares) $ 10.89 $ 14.41 $ 12.43
--------------------------------------------------------
Redemption price per share * * *
========================================================
Class C Shares/Net Assets $ 32,671 $ 736,735 $ 84,155 $ 213,600
Shares Outstanding 2,999 22,846 5,842 17,197
Net asset value and offering price per share ($/shares) $ 10.89 $ 32.25 $ 14.41 $ 12.42
--------------------------------------------------------
Redemption price per share * * * *
========================================================
Cost of investments owned $ 51,637 $ 656,730 $ 116,840 $ 211,794
Cost of foreign currency held 0 0 0 6,324
Cost of foreign currency contracts held 0 0 0 42,071
Cost of foreign currency contracts sold 0 0 0 70,334
Premiums received on written options 0 2,966 109 0
Proceeds from securitiies sold short 0 0 0 0
Sales charge-% of public offering price 5.50% 5.50% 5.50% 5.50%
64/PIMCO Advisors Funds See accompanying notes
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Precious Global Income High Income Total Return
Metals Fund Fund Fund Income Fund
----------- ------------- ----------- ------------
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Securities owned, at value (Note 2a) $ 54,916 $ 18,690 $ 206,131 $ 280,142
Foreign currency holdings, at value (Note 2b) 0 232 0 60
Forward foreign currency contracts purchased (Notes 2e and 7) 0 1,671 0 0
Cash 40 509 1,517 2,253
Dividends receivable 120 0 102 0
Interest receivable 0 304 4,901 583
Variation margin receivable 0 9 0 151
Receivable for investments sold 0 2,371 3,965 9,810
Receivable for Fund shares sold 459 295 778 1,324
Receivable for forward foreign currency contracts sold (Notes 2e and 7) 0 4,720 0 7,811
Other assets 8 51 38 56
--------------------------------------------------------
Total assets 55,543 28,852 217,432 302,190
--------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------------------------------------------
Payable for investments purchased 0 9,978 477 129,739
Variation margin payable 0 11 0 139
Payable for forward foreign currency contracts purchased (Notes 2e and 7) 0 1,658 0 0
Payable for Fund shares redeemed 111 5 706 219
Outstanding options written, at value (Notes 2c and 6) 0 0 0 0
Securities sold short 0 1,749 0 0
Forward foreign currency contracts sold, at value (Notes 2e and 7) 0 4,698 0 7,679
Accrued expenses:
Investment advisory fee 36 6 108 81
Distribution fee 31 2 123 69
Servicing fee 12 2 45 34
Other 83 75 703 202
--------------------------------------------------------
Total liabilities 273 18,184 2,162 138,162
--------------------------------------------------------
Net Assets $ 55,270 $ 10,668 $ 215,270 $ 164,028
========================================================
- ------------------------------------------------------------------------------------------------------------------------------------
Composition of Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Capital $ 44,786 $ 10,492 $ 322,233 $ 166,354
Undistributed (overdistributed) net investment income (102) 14 70 183
Accumulated undistributed net realized gain (loss) 2 129 (113,418) (1,642)
Net unrealized appreciation (depreciation) on securities 10,584 (11) 6,385 (1,045)
Net unrealized appreciation (depreciation) on foreign currency holdings 0 22 0 0
Net unrealized appreciation (depreciation) on forward
foreign currency contracts 0 36 0 132
Net unrealized appreciation (depreciation) on options written 0 (2) 0 0
Net unrealized appreciation (depreciation) on futures contracts 0 (11) 0 46
--------------------------------------------------------
Total net assets $ 55,270 $ 10,668 $ 215,270 $ 164,028
========================================================
- ------------------------------------------------------------------------------------------------------------------------------------
Calculation of Maximum Offering Price
- ------------------------------------------------------------------------------------------------------------------------------------
Class A Shares /Net Assets $ 7,940 $ 6,939 $ 19,123 $ 51,441
Shares Outstanding 568 667 2,395 4,947
Net asset value and redemption price per share ($/shares) $ 13.93 $ 10.40 $ 7.98 $ 10.40
Sales charge 0.81 0.52 0.40 0.52
--------------------------------------------------------
Maximum offering price $ 14.79 $ 10.92 $ 8.38 $ 10.92
========================================================
Class B Shares/Net Assets $ 1,469 $ 1,768 $ 17,193 $ 32,182
Shares Outstanding 109 170 2,158 3,086
Net asset value and offering price per share ($/shares) $ 13.46 $ 10.40 $ 7.97 $ 10.43
--------------------------------------------------------
Redemption price per share * * * *
========================================================
Class C Shares/Net Assets $ 45,861 $ 1,961 $ 178,954 $ 60,405
Shares Outstanding 3,409 188 22,592 7,735
Net asset value and offering price per share ($/shares) $ 13.45 $ 10.40 $ 7.92 $ 10.39
--------------------------------------------------------
Redemption price per share * * * *
========================================================
Cost of investments owned $ 44,332 $ 18,704 $ 199,746 $ 281,887
Cost of foreign currency held 0 210 0 60
Cost of foreign currency contracts held 0 1,658 0 0
Cost of foreign currency contracts sold 0 4,720 0 7,811
Premiums received on written options 0 1 0 0
Proceeds from securitiies sold short 0 1,750 0 0
Sales charge-% of public offering price 5.50% 4.75% 4.75% 4.75%
<CAPTION>
Tax Exempt U.S. Govt. Short-Int. Money Market
Fund Fund Fund Fund
---------- ---------- ---------- ------------
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Securities owned, at value (Note 2a) $ 53,747 $ 320,157 $ 131,028 $ 101,114
Foreign currency holdings, at value (Note 2b) 0 0 0 0
Forward foreign currency contracts purchased (Notes 2e and 7) 0 0 0 0
Cash 1 1,148 1,175 1,445
Dividends receivable 0 0 0 0
Interest receivable 964 1,717 1,276 0
Variation margin receivable 0 278 12 0
Receivable for investments sold 1,501 10,347 5,248 0
Receivable for Fund shares sold 235 192 128 0
Receivable for forward foreign currency contracts sold (Notes 2e and 7) 0 0 3,605 0
Other assets 9 65 12 12
--------------------------------------------------------
Total assets 56,457 333,904 142,484 102,571
--------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------------------------------------------
Payable for investments purchased 1,331 47,879 20,856 0
Variation margin payable 0 261 0 0
Payable for forward foreign currency contracts purchased (Notes 2e and 7) 0 0 0 0
Payable for Fund shares redeemed 80 576 154 1,907
Outstanding options written, at value (Notes 2c and 6) 0 5 0 0
Securities sold short 0 0 0 0
Forward foreign currency contracts sold, at value (Notes 2e and 7) 0 0 3,581 0
Accrued expenses:
Investment advisory fee 28 143 47 8
Distribution fee 33 172 32 0
Servicing fee 12 61 23 8
Other 164 381 200 175
--------------------------------------------------------
Total liabilities 1,648 49,478 24,893 2,098
--------------------------------------------------------
Net Assets $ 54,809 $ 284,426 $ 117,591 $ 100,473
========================================================
- ------------------------------------------------------------------------------------------------------------------------------------
Composition of Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Capital $ 52,894 $ 357,067 $ 124,620 $ 100,473
Undistributed (overdistributed) net investment income 76 (529) 30 0
Accumulated undistributed net realized gain (loss) (915) (74,307) (5,893) 0
Net unrealized appreciation (depreciation) on securities 2,763 2,377 (1,134) 0
Net unrealized appreciation (depreciation) on foreign currency holdings 0 0 0 0
Net unrealized appreciation (depreciation) on forward
foreign currency contracts 0 0 24 0
Net unrealized appreciation (depreciation) on options written 0 (1) 0 0
Net unrealized appreciation (depreciation) on futures contracts 0 (181) (56) 0
--------------------------------------------------------
Total net assets $ 54,809 $ 284,426 $ 117,591 $ 100,473
========================================================
- ------------------------------------------------------------------------------------------------------------------------------------
Calculation of Maximum Offering Price
- ------------------------------------------------------------------------------------------------------------------------------------
Class A Shares /Net Assets $ 4,042 $ 16,689 $ 49,869 $ 21,991
Shares Outstanding 341 1,855 5,160 21,991
Net asset value and redemption price per share ($/shares) $ 11.85 $ 9.00 $ 9.66 $ 1.00
Sales charge 0.59 0.45 0.30
--------------------------------------------------------
Maximum offering price $ 12.44 $ 9.45 $ 9.96
========================================================
Class B Shares/Net Assets $ 1,501 $ 4,084 $ 2,010 $ 293
Shares Outstanding 127 454 208 293
Net asset value and offering price per share ($/shares) $ 11.86 $ 8.99 $ 9.66 $ 1.00
--------------------------------------------------------
Redemption price per share * * * *
========================================================
Class C Shares/Net Assets $ 49,266 $ 263,653 $ 65,712 $ 78,189
Shares Outstanding 4,162 29,434 6,820 78,189
Net asset value and offering price per share ($/shares) $ 11.84 $ 8.96 $ 9.63 $ 1.00
--------------------------------------------------------
Redemption price per share * * * *
========================================================
Cost of investments owned $ 50,984 $ 317,780 $ 132,162 $ 101,114
Cost of foreign currency held 0 0 0 0
Cost of foreign currency contracts held 0 0 0 0
Cost of foreign currency contracts sold 0 0 3,605 0
Premiums received on written options 0 4 0 0
Proceeds from securitiies sold short 0 0 0 0
Sales charge-% of public offering price 4.75% 4.75% 3.00% N/A
*Varies by lenght of time shares are held (Note 3d) See Notes to Financial Statements
</TABLE>
Semi-Annual Report See accompanying notes/65
<PAGE>
<TABLE>
<CAPTION>
Statement of Operations For the six months ended March 31, 1996 (unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Amounts in thousands Equity Income Value Growth Target
Fund Fund Fund Fund
-------- ------ --------- --------
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Income
- ------------------------------------------------------------------------------------------------------------------------------------
Interest $ 1,070 $ 54 $ 3,110 $ 2,757
Dividends, net of foreign taxes 1,945 430 7,352 1,329
--------------------------------------------------------
Total investment income 3,015 484 10,462 4,086
--------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses
- ------------------------------------------------------------------------------------------------------------------------------------
Investment advisory fee (Note 3a) 758 93 4,860 3,370
Distribution fee (Class B) (Note 3b) 12 29 52 50
Distribution fee (Class C) (Note 3b) 696 53 4,982 3,038
Servicing fee (Class A) (Note 3b) 17 6 172 157
Servicing fee (Class B) (Note 3b) 4 9 17 16
Servicing fee (Class C) (Note 3b) 232 18 1,661 1,013
Transfer agent and custody fees 165 34 968 688
Professional fees 20 10 107 81
Trustees' fees and expenses (Note 3c) 13 2 145 94
Shareholder reports and notices 35 6 340 350
Miscellaneous 26 6 148 121
--------------------------------------------------------
Total expenses 1,978 266 13,452 8,978
--------------------------------------------------------
Net investment income (loss) 1,037 218 (2,990) (4,892)
--------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Realized and unrealized gain (loss) on investments
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on security and foreign currency transactions 22,212 435 81,534 20,482
Net realized gain (loss) on forward foreign currency transactions 0 0 0 0
Net realized gain (loss) on options written 69 0 (5,969) 964
Net realized gain (loss) on futures transactions 0 0 0 0
Net unrealized appreciation (depreciation) on securities (477) 2,326 54,426 61,017
Net unrealized appreciation (depreciation) on foreign currency holdings 0 0 0 0
Net unrealized appreciation (depreciation) on written options 0 0 (458) (98)
Net unrealized appreciation (depreciation) on futures contracts 0 0 0 0
Net unrealized appreciation (depreciation) on forward
foreign currency contracts 0 0 0 0
--------------------------------------------------------
Net realized and unrealized gain (loss) on investments 21,804 2,761 129,533 82,365
--------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ 22,841 $2,979 $ 126,543 $ 77,473
========================================================
Foreign taxes included in Dividend Income $ 0 $ 0 $ 26 $ 0
66/PIMCO Advisors Funds See accompanying notes
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Amounts in thousands Discovery Opportunity Innovation International
Fund Fund Fund Fund
--------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Income
- ------------------------------------------------------------------------------------------------------------------------------------
Interest $ 143 $ 2,905 $ 302 $ 244
Dividends, net of foreign taxes 407 732 34 1,351
--------------------------------------------------------
Total investment income 550 3,637 336 1,595
--------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses
- ------------------------------------------------------------------------------------------------------------------------------------
Investment advisory fee (Note 3a) 186 2,903 411 918
Distribution fee (Class B) (Note 3b) 54 0 38 264
Distribution fee (Class C) (Note 3b) 100 2,623 262 524
Servicing fee (Class A) (Note 3b) 11 144 37 16
Servicing fee (Class B) (Note 3b) 18 0 13 2
Servicing fee (Class C) (Note 3b) 33 875 87 269
Transfer agent and custody fees 73 380 121 320
Professional fees 15 61 16 40
Trustees' fees and expenses (Note 3c) 4 64 8 20
Shareholder reports and notices 14 120 30 120
Miscellaneous 6 82 34 37
--------------------------------------------------------
Total expenses 514 7,252 1,057 2,530
--------------------------------------------------------
Net investment income (loss) 36 (3,615) (721) (935)
--------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Realized and unrealized gain (loss) on investments
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on security and foreign currency transactions (3,770) 93,402 (618) 24,180
Net realized gain (loss) on forward foreign currency transactions 0 0 0 (7,008)
Net realized gain (loss) on options written 0 (4,625) 312 0
Net realized gain (loss) on futures transactions 0 0 0 (11,830)
Net unrealized appreciation (depreciation) on securities 4,743 (18,744) 1,842 9,113
Net unrealized appreciation (depreciation) on foreign currency holdings 0 0 0 (82)
Net unrealized appreciation (depreciation) on written options 0 (7,378) (15) 0
Net unrealized appreciation (depreciation) on futures contracts 0 0 0 51
Net unrealized appreciation (depreciation) on forward
foreign currency contracts 0 0 0 (776)
--------------------------------------------------------
Net realized and unrealized gain (loss) on investments 973 62,655 1,521 13,648
--------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ 1,009 $ 59,040 $ 800 $ 12,713
========================================================
Foreign taxes included in Dividend Income $ 0 $ 0 $ 0 $ 180
<CAPTION>
Amounts in thousands Precious Global Income High Income Total Return
Metals Fund Fund Fund Income Fund
----------- ------------- ----------- ------------
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Income
- ------------------------------------------------------------------------------------------------------------------------------------
Interest $ 75 $ 191 $ 9,048 $ 3,912
Dividends, net of foreign taxes 320 0 317 0
--------------------------------------------------------
Total investment income 395 191 9,365 3,912
--------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses
- ------------------------------------------------------------------------------------------------------------------------------------
Investment advisory fee (Note 3a) 193 9 571 391
Distribution fee (Class B) (Note 3b) 3 1 37 73
Distribution fee (Class C) (Note 3b) 158 1 630 240
Servicing fee (Class A) (Note 3b) 11 3 16 59
Servicing fee (Class B) (Note 3b) 1 0 12 24
Servicing fee (Class C) (Note 3b) 53 0 210 80
Transfer agent and custody fees 39 0 127 66
Professional fees 13 0 45 19
Trustees' fees and expenses (Note 3c) 2 0 24 5
Shareholder reports and notices 15 0 80 25
Miscellaneous 9 9 22 37
--------------------------------------------------------
Total expenses 497 23 1,774 1,019
--------------------------------------------------------
Net investment income (loss) (102) 168 7,591 2,893
--------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Realized and unrealized gain (loss) on investments
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on security and foreign currency transactions 544 (10) 1,919 (1,532)
Net realized gain (loss) on forward foreign currency transactions 0 131 0 109
Net realized gain (loss) on options written 0 13 0 130
Net realized gain (loss) on futures transactions 0 (5) 0 1,197
Net unrealized appreciation (depreciation) on securities 6,834 (11) (1,761) (1,760)
Net unrealized appreciation (depreciation) on foreign currency holdings 0 22 0 0
Net unrealized appreciation (depreciation) on written options 0 (2) 0 (4)
Net unrealized appreciation (depreciation) on futures contracts 0 (11) 0 (95)
Net unrealized appreciation (depreciation) on forward
foreign currency contracts 0 36 0 256
--------------------------------------------------------
Net realized and unrealized gain (loss) on investments 7,378 163 158 (1,699)
--------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ 7,276 $ 331 $ 7,749 $ 1,194
========================================================
Foreign taxes included in Dividend Income $ 21 $ 0 $ 0 $ 0
<CAPTION>
Amounts in thousands Tax Exempt U.S. Govt. Short-Int. Money Market
Fund Fund Fund Fund
---------- ---------- ---------- ------------
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Income
- ------------------------------------------------------------------------------------------------------------------------------------
Interest $ 1,642 $ 10,658 $ 2,562 $2,522
Dividends, net of foreign taxes 0 0 0 0
--------------------------------------------------------
Total investment income 1,642 10,658 2,562 2,522
--------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses
- ------------------------------------------------------------------------------------------------------------------------------------
Investment advisory fee (Note 3a) 172 878 202 44
Distribution fee (Class B) (Note 3b) 4 7 6 1
Distribution fee (Class C) (Note 3b) 198 1,059 165 0
Servicing fee (Class A) (Note 3b) 5 11 18 9
Servicing fee (Class B) (Note 3b) 1 3 2 0
Servicing fee (Class C) (Note 3b) 66 363 81 36
Transfer agent and custody fees 26 180 56 61
Professional fees 13 41 16 13
Trustees' fees and expenses (Note 3c) 4 55 9 4
Shareholder reports and notices 20 90 15 24
Miscellaneous 8 42 14 15
--------------------------------------------------------
Total expenses 517 2,729 584 207
--------------------------------------------------------
Net investment income (loss) 1,125 7,929 1,978 2,315
--------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Realized and unrealized gain (loss) on investments
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on security and foreign currency transactions 140 3,657 334 0
Net realized gain (loss) on forward foreign currency transactions 0 0 97 0
Net realized gain (loss) on options written 0 (1,783) 123 0
Net realized gain (loss) on futures transactions 0 0 145 0
Net unrealized appreciation (depreciation) on securities (7) (5,757) (429) 0
Net unrealized appreciation (depreciation) on foreign currency holdings 0 0 0 0
Net unrealized appreciation (depreciation) on written options 0 (93) (62) 0
Net unrealized appreciation (depreciation) on futures contracts 0 (377) (73) 0
Net unrealized appreciation (depreciation) on forward
foreign currency contracts 0 0 57 0
--------------------------------------------------------
Net realized and unrealized gain (loss) on investments 133 (4,353) 192 0
--------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ 1,258 $ 3,576 $ 2,170 $2,315
========================================================
Foreign taxes included in Dividend Income $ 0 $ 0 $ 0 $ 0
Advisors Funds See accompanying notes
</TABLE>
Semi-Annual Report See accompanying notes/67
<PAGE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Amounts in thousands Equity Income Value Growth
Fund Fund Fund
-------------------------- -------------------------- --------------------------------
6 Months 6 Months 6 Months
Ended Year Ended Period Ended Year
3/31/96 Ended 3/31/96 Ended 3/31/96 Ended
(unaudited) 9/30/95 (unaudited) 9/30/95(a) (unaudited) 9/30/95
<S> <C> <C> <C> <C> <C> <C>
Operations
Net investment income (loss) $ 1,037 $ 3,960 $ 218 $ 45 $ (2,990) $ (1,692)
Net realized gain (loss) on security
and foreign currency transactions 22,212 7,637 435 1 81,534 170,814
Net realized gain (loss) on forward
foreign currency contracts 0 0 0 0 0 0
Net realized gain (loss) on options
written 69 64 0 0 (5,969) (10,518)
Net realized gain (loss) on futures
transactions 0 0 0 0 0 0
Net unrealized appreciation
(depreciation) on securities (477) 13,910 2,326 485 54,426 107,005
Net unrealized appreciation
(depreciation) on foreign
currency holdings 0 0 0 0 0 0
Net unrealized appreciation
(depreciation) on forward
foreign currency contracts 0 0 0 0 0 0
Net unrealized appreciation
(depreciation) on options written 0 1 0 0 (458) (1,232)
Net unrealized appreciation
(depreciation) on futures contracts 0 0 0 0 0 0
--------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets resulting from operations 22,841 25,572 2,979 531 126,543 264,377
============================================================================================
*Undistributed net investment
income included in price of
shares sold and reaquired (Note 2i) (191) 0 (22) 0 0 0
--------------------------------------------------------------------------------------------
Distributions to shareholders
From net investment income
Class A (167) (344) 0 (12) 0 0
Class B (19) (6) 0 (12) 0 0
Class C (1,267) (3,191) 0 (22) 0 0
From net realized gain on investments
Class A (710) 0 (50) 0 (15,282) (5,788)
Class B (132) 0 (55) 0 (1,264) 0
Class C (9,561) 0 (102) 0 (150,649) (59,480)
Return of capital
Class A 0 0 0 (3) 0 0
Class B 0 0 0 (3) 0 0
Class C 0 0 0 (5) 0 0
--------------------------------------------------------------------------------------------
Total distributions (11,856) (3,541) (207) (57) (167,195) (65,268)
--------------------------------------------------------------------------------------------
Net equalization credits (debits)
(Note 2i) 0 (108) 0 22 0 0
Net increase (decrease) from Fund
share transactions (Note 5) 19,871 (26,748) 24,358 12,614 161,844 40,837
Increase (decrease) in aggregate
paid in capital for reversal of
amounts previously allocated to
undistributed net investment
income (Note 2i) 191 0 22 0 0 0
--------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 30,856 (4,825) 27,130 13,110 121,192 239,946
============================================================================================
Net Assets
Beginning of period 189,009 193,834 13,110 0 1,432,642 1,192,696
End of period* $ 219,865 $ 189,009 $ 40,240 $ 13,110 $ 1,553,834 $ 1,432,642
============================================================================================
*Including undistributed
(overdistributed) net investment
income of: $ (37) $ 570 $ 11 $ 22 $ (2,990) $ 0
</TABLE>
(a) From commencement on June 27, 1995.
(b) From commencement on December 22, 1994.
(c) From commencement on October 1, 1995.
<TABLE>
<CAPTION>
Amounts in thousands Target Discovery Opportunity
Fund Fund Fund
--------------------------- ----------------------------- ------------------------------
6 Months 6 Months 6 Months
Ended Year Ended Period Ended Year
3/31/96 Ended 3/31/96 Ended 3/31/96 Ended
(unaudited) 9/30/95 (unaudited) 9/30/95(a) (unaudited) 9/30/95
<S> <C> <C> <C> <C> <C> <C>
Operations
Net investment income (loss) $ (4,892) $ (5,836) $ 36 $ (23) $ (3,615) $ (6,920)
Net realized gain (loss) on security
and foreign currency transactions 20,482 109,353 (3,770) (514) 93,402 194,820
Net realized gain (loss) on forward
foreign currency contracts 0 0 0 0 0 0
Net realized gain (loss) on options
written 964 416 0 0 (4,625) 359
Net realized gain (loss) on futures
transactions 0 0 0 0 0 0
Net unrealized appreciation
(depreciation) on securities 61,017 76,694 4,743 1,655 (18,744) 45,693
Net unrealized appreciation
(depreciation) on foreign
currency holdings 0 0 0 0 0 0
Net unrealized appreciation
(depreciation) on forward
foreign currency contracts 0 0 0 0 0 0
Net unrealized appreciation
(depreciation) on options written (98) (133) 0 0 (7,378) 3,282
Net unrealized appreciation
(depreciation) on futures contracts 0 0 0 0 0 0
--------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets resulting from operations 77,473 180,494 1,009 1,118 59,040 237,234
============================================================================================
*Undistributed net investment
income included in price of
shares sold and reaquired (Note 2i) 0 0 0 0 0 0
--------------------------------------------------------------------------------------------
Distributions to shareholders
From net investment income
Class A 0 0 0 0 0 0
Class B 0 0 0 0 0 0
Class C 0 0 0 0 0 0
From net realized gain on investments
Class A (1,163) (1,095) 0 0 (23,619) (2,828)
Class B (13,463) 0 0 0 0 0
Class C (87,761) (7,061) 0 0 (145,763) (16,835)
Return of capital
Class A 0 0 0 0 0 0
Class B 0 0 0 0 0 0
Class C 0 0 0 0 0 0
--------------------------------------------------------------------------------------------
Total distributions (102,387) (8,156) 0 0 (169,382) (19,663)
--------------------------------------------------------------------------------------------
Net equalization credits (debits)
(Note 2i) 0 0 0 0 0 0
Net increase (decrease) from Fund
share transactions (Note 5) 148,500 90,917 20,329 37,633 129,679 (30,272)
Increase (decrease) in aggregate
paid in capital for reversal of
amounts previously allocated to
undistributed net investment
income (Note 2i) 0 0 0 0 0 0
============================================================================================
Net increase (decrease) in net assets 123,586 263,255 21,338 38,751 19,337 187,299
Net Assets
Beginning of period 909,825 646,570 38,751 0 836,021 648,722
--------------------------------------------------------------------------------------------
End of period* $ 1,033,411 $ 909,825 $ 60,089 $ 38,751 $ 855,358 $ 836,021
============================================================================================
*Including undistributed
(overdistributed) net investment
income of: $ (4,892) $ 0 $ 36 $ 0 $ (3,615) $ 0
</TABLE>
(a) From commencement on June 27, 1995.
(b) From commencement on December 22, 1994.
(c) From commencement on October 1, 1995.
<TABLE>
<CAPTION>
Amounts in thousands Innovation
Fund
----------------------------
6 Months
Ended Period
3/31/96 Ended
(unaudited) 9/30/95(b)
<S> <C> <C>
Operations
Net investment income (loss) $ (721) $ (398)
Net realized gain (loss) on security
and foreign currency contracts (618) 2,392
Net realized gain (loss) on forward
foreign currency contracts 0 0
Net realized gain (loss) on options
written 312 (99)
Net realized gain (loss) on futures
transactions 0 0
Net unrealized appreciation
(depreciation) on securities 1,842 16,546
Net unrealized appreciation
(depreciation) on foreign
currency holdings 0 0
Net unrealized appreciation
(depreciation) on forward
foreign currency contracts 0 0
Net unrealized appreciation
(depreciation) on options written (15) 0
Net unrealized appreciation
(depreciation) on futures contracts 0 0
-----------------------------
Net increase (decrease) in net
assets resulting from operations 800 18,441
=============================
*Undistributed net investment
income included in price of
shares sold and reaquired (Note 2i) 0 0
-----------------------------
Distributions to shareholders
From net investment income
Class A 0 0
Class B 0 0
Class C 0 0
From net realized gain on investments
Class A (689) 0
Class B (219) 0
Class C (1,571) 0
Return of capital
Class A 0 0
Class B 0 0
Class C 0 0
-----------------------------
Total distributions (2,479) 0
-----------------------------
Net equalization credits (debits)
(Note 2i) 0 0
Net increase (decrease) from Fund
share transactions (Note 5) 34,643 80,260
Increase (decrease) in aggregate
paid in capital for reversal of
amounts previously allocated to
undistributed net investment
income (Note 2i) 0 0
-----------------------------
Net increase (decrease) in net assets 32,964 98,701
=============================
Net Assets
Beginning of period 98,701 0
-----------------------------
End of period* $ 131,665 $ 98,701
=============================
*Including undistributed
(overdistributed) net investment
income of: $ (721) $ 0
</TABLE>
(a) From commencement on June 27, 1995.
(b) From commencement on December 22, 1994.
(c) From commencement on October 1, 1995.
68/PIMCO Advisors Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Amounts in thousands International Precious Global
Fund Metals Fund Income Fund
-------------------------------- --------------------------- --------------
6 Months 6 Months 6 Months
Ended Year Ended Year Ended
3/31/96 Ended 3/31/96 Ended 3/31/96(c)
(unaudited) 9/30/95 (unaudited) 9/30/95 (unaudited)
<S> <C> <C> <C> <C> <C>
Operations
Net investment income (loss) $ (935) $ (336) $ (102) $ (38) $ 168
Net realized gain (loss) on security
and foreign currency transactions 24,180 (9,232) 544 815 (10)
Net realized gain (loss) on forward
foreign currency contracts (7,008) 5,760 0 0 131
Net realized gain (loss) on options
written 0 0 0 0 13
Net realized gain (loss) on futures
transactions (11,830) (357) 0 0 (5)
Net unrealized appreciation
(depreciation) on securities 9,113 (12,735) 6,834 (10,774) (11)
Net unrealized appreciation
(depreciation) on foreign
currency holdings (82) 70 0 0 22
Net unrealized appreciation
(depreciation) on forward
foreign currency contracts (776) (237) 0 0 36
Net unrealized appreciation
(depreciation) on options written 0 0 0 0 (2)
Net unrealized appreciation
(depreciation) on futures contracts 51 0 0 0 (11)
------------------------------------------------------------------------------------
Net increase (decrease) in net
assets resulting from operations 12,713 (17,067) 7,276 (9,997) 331
====================================================================================
*Undistributed net investment
income included in price of
shares sold and reaquired (Note 2i) 0 0 0 0 0
------------------------------------------------------------------------------------
Distributions to shareholders
From net investment income
Class A 0 0 0 0 (146)
Class B 0 0 0 0 (4)
Class C 0 0 0 0 (4)
From net realized gain on investments
Class A 0 (428) 0 0 0
Class B 0 0 0 0 0
Class C 0 (5,584) 0 0 0
Return of capital
Class A 0 0 0 0 0
Class B 0 0 0 0 0
Class C 0 0 0 0 0
------------------------------------------------------------------------------------
Total distributions 0 (6,012) 0 0 (154)
------------------------------------------------------------------------------------
Net equalization credits (debits)
(Note 2i) 0 0 0 0 0
Net increase (decrease) from Fund
share transactions (Note 5) (9,113) (60,899) (2,268) (13,795) 10,491
Increase (decrease) in aggregate
paid in capital for reversal of
amounts previously allocated to
undistributed net investment
income (Note 2i) 0 0 0 0 0
------------------------------------------------------------------------------------
Net increase (decrease) in net assets 3,600 (83,978) 5,008 (23,792) 10,668
====================================================================================
Net Assets
Beginning of period 233,803 317,781 50,262 74,054 0
------------------------------------------------------------------------------------
End of period* $ 237,403 $ 233,803 $ 55,270 $ 50,262 $ 10,668
====================================================================================
*Including undistributed
(overdistributed) net investment
income of: $ (2,253) $ (1,319) $ (102) $ 0 $ 14
(a) From commencement on June 27, 1995.
(b) From commencement on December 22, 1994.
(c) From commencement on October 1, 1995.
<CAPTION>
Amounts in thousands High Income Total Return Tax Exempt
Fund Fund Fund
---------------------- --------------------------- ---------------------------
6 Months 6 Months 6 Months
Ended Year Ended Year Ended Year
3/31/96 Ended 3/31/96 Ended 3/31/96 Ended
(unaudited) 9/30/95 (unaudited) 9/30/95 (unaudited) 9/30/95
<S> <C> <C> <C> <C> <C> <C>
Operations
Net investment income (loss) $ 7,591 $ 12,340 $ 2,893 $ 1,683 $ 1,125 $ 2,628
Net realized gain (loss) on security
and foreign currency transactions 1,919 (50,483) (1,532) 173 140 (507)
Net realized gain (loss) on forward
foreign currency contracts 0 0 109 207 0 0
Net realized gain (loss) on options
written 0 86 130 226 0 0
Net realized gain (loss) on futures
transactions 0 0 1,197 1,236 0 0
Net unrealized appreciation
(depreciation) on securities (1,761) 57,888 (1,760) 716 (7) 3,556
Net unrealized appreciation
(depreciation) on foreign
currency holdings 0 0 0 0 0 0
Net unrealized appreciation
(depreciation) on forward
foreign currency contracts 0 0 256 (124) 0 0
Net unrealized appreciation
(depreciation) on options written 0 0 (4) 4 0 0
Net unrealized appreciation
(depreciation) on futures contracts 0 0 (95) 141 0 0
--------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets resulting from operations 7,749 19,831 1,194 4,262 1,258 5,677
============================================================================================
*Undistributed net investment
income included in price of
shares sold and reaquired (Note 2i) 0 0 0 0 0 0
--------------------------------------------------------------------------------------------
Distributions to shareholders
From net investment income
Class A (529) (428) (1,180) (848) (79) (130)
Class B (376) (50) (420) (60) (19) (3)
Class C (6,538) (12,256) (1,383) (734) (1,049) (2,540)
From net realized gain on investments
Class A 0 0 (1,178) 0 0 0
Class B 0 0 (417) 0 0 0
Class C 0 0 (1,563) 0 0 0
Return of capital
Class A 0 0 0 0 0 0
Class B 0 0 0 0 0 0
Class C 0 0 0 0 0 0
--------------------------------------------------------------------------------------------
Total distributions (7,443) (12,734) (6,141) (1,642) (1,147) (2,673)
--------------------------------------------------------------------------------------------
Net equalization credits (debits)
(Note 2i) 0 0 0 0 0 0
Net increase (decrease) from Fund
share transactions (Note 5) 45,114 (20,857) 76,825 89,530 (2,515) (16,731)
Increase (decrease) in aggregate
paid in capital for reversal of
amounts previously allocated to
undistributed net investment
income (Note 2i) 0 0 0 0 0 0
--------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 45,420 (13,760) 71,878 92,150 (2,404) (13,727)
============================================================================================
Net Assets
Beginning of period 169,850 183,610 92,150 0 57,213 70,940
--------------------------------------------------------------------------------------------
End of period* $ 215,270 $ 169,850 $ 164,028 $ 92,150 $ 54,809 $ 57,213
============================================================================================
*Including undistributed
(overdistributed) net investment
income of: $ 70 $ 283 $ 183 $ 67 $ 67 $ (132)
(a) From commencement on June 27, 1995.
(b) From commencement on December 22, 1994.
(c) From commencement on October 1, 1995.
<CAPTION>
Amounts in thousands U.S. Govt. Short-Int. Money
Fund Fund Market Fund
------------------------------ ---------------------- -----------------------
6 Months 6 Months 6 Months
Ended Year Ended Year Ended Year
3/31/96 Ended 3/31/96 Ended 3/31/96 Ended
(unaudited) 9/30/95 (unaudited) 9/30/95 (unaudited) 9/30/95
<S> <C> <C> <C> <C> <C> <C>
Operations
Net investment income (loss) $ 7,929 $ 18,847 $ 1,978 $ 4,394 $ 2,315 $ 5,049
Net realized gain (loss) on security
and foreign currency transactions 3,657 (12,689) 334 (1,524) 0 0
Net realized gain (loss) on forward
foreign currency contracts 0 0 97 (48) 0 0
Net realized gain (loss) on options
written (1,783) 133 123 105 0 0
Net realized gain (loss) on futures
transactions 0 3,790 145 217 0 0
Net unrealized appreciation
(depreciation) on securities (5,757) 24,567 (429) 2,847 0 0
Net unrealized appreciation
(depreciation) on foreign
currency holdings 0 0 0 (6) 0 0
Net unrealized appreciation
(depreciation) on forward
foreign currency contracts 0 0 57 0 0 0
Net unrealized appreciation
(depreciation) on options written (93) 93 (62) 62 0 0
Net unrealized appreciation
(depreciation) on futures contracts (377) 286 (73) (122) 0 0
------------------------------------------------------------------------------------
Net increase (decrease) in net
assets resulting from operations 3,576 35,027 2,170 5,925 2,315 5,049
====================================================================================
*Undistributed net investment
income included in price of
shares sold and reaquired (Note 2i) 0 0 0 0 0 0
------------------------------------------------------------------------------------
Distributions to shareholders
From net investment income
Class A (542) (981) (427) (385) (455) (731)
Class B (83) (10) (39) (11) (6) (1)
Class C (8,113) (17,838) (1,785) (4,027) (1,854) (4,318)
From net realized gain on investments
Class A 0 0 0 0 0 0
Class B 0 0 0 0 0 0
Class C 0 0 0 0 0 0
Return of capital
Class A 0 0 0 0 0 0
Class B 0 0 0 0 0 0
Class C 0 0 0 0 0 0
------------------------------------------------------------------------------------
Total distributions (8,738) (18,829) (2,251) (4,423) (2,315) (5,050)
------------------------------------------------------------------------------------
Net equalization credits (debits)
(Note 2i) 0 0 0 0 0 0
Net increase (decrease) from Fund
share transactions (Note 5) (15,418) (91,487) 44,780 (22,432) 17,535 (14,058)
Increase (decrease) in aggregate
paid in capital for reversal of
amounts previously allocated to
undistributed net investment
income (Note 2i) 0 0 0 0 0 0
------------------------------------------------------------------------------------
Net increase (decrease) in net assets (20,580) (75,289) 44,699 (20,930) 17,535 (14,059)
====================================================================================
Net Assets
Beginning of period 305,006 380,295 72,892 93,822 82,938 96,997
------------------------------------------------------------------------------------
End of period* $ 284,426 $ 305,006 $ 117,591 $ 72,892 $ 100,473 $ 82,938
====================================================================================
*Including undistributed
(overdistributed) net investment
income of: $ (529) $ 280 $ 30 $ 111 $ 0 $ 0
</TABLE>
(a) From commencement on June 27, 1995.
(b) From commencement on December 22, 1994.
(c) From commencement on October 1, 1995.
Semi-Annual Report See accompanying notes/69
<PAGE>
Notes to Financial Statements (unaudited)
================================================================================
- --------------------------------------------------------------------------------
1. Organization and Business
- --------------------------------------------------------------------------------
PIMCO Advisors Funds (the "Trust") is an investment company registered under the
Investment Company Act of 1940, as amended. It is organized as a Massachusetts
business trust and is an open-end series management investment company which
currently consists of sixteen Funds: PIMCO Advisors Equity Income Fund, PIMCO
Advisors Value Fund, PIMCO Advisors Growth Fund, PIMCO Advisors Target Fund,
PIMCO Advisors Discovery Fund, PIMCO Advisors Opportunity Fund, PIMCO Advisors
Innovation Fund, PIMCO Advisors International Fund, PIMCO Advisors Precious
Metals Fund, PIMCO Advisors Global Income Fund, PIMCO Advisors High Income Fund,
PIMCO Advisors Total Return Income Fund, PIMCO Advisors Tax Exempt Fund, PIMCO
Advisors U.S. Government Fund, PIMCO Advisors Short-Intermediate Fund and PIMCO
Advisors Money Market Fund.
The Trust offers Class A, Class B and Class C shares of each Fund, with the
exception of the Opportunity Fund which does not offer Class B shares. Class A
shares are sold with an initial sales charge. Class B and Class C shares are
sold with a contingent deferred sales charge. All classes of shares have
identical voting, dividend, liquidation and other rights and the same terms and
conditions, except that each class bears different distribution expenses and has
exclusive voting rights with respect to its distribution plan.
- --------------------------------------------------------------------------------
2. Significant Accounting Policies
- --------------------------------------------------------------------------------
a) Portfolio Valuations: The portfolio investments of the Money Market Fund are
valued at either amortized cost or original cost plus accrued interest
receivable, both of which approximate market value. The amortized cost of a
security is determined by valuing it at original cost and thereafter amortizing
any discount or premium from its face value at a constant rate until maturity.
Since this method does not give consideration to fluctuating interest rates it
may at times result in book valuations that are higher or lower than the current
market price.
For the other Funds, securities for which market quotations are readily
available are valued at market value, which is determined by using the last
reported sale price, or, if no sales are reported--and in the case of certain
securities traded over-the-counter--the mean between the last reported bid and
asked prices. U.S. Government Securities are traded over-the-counter. Short-term
obligations having remaining maturities of 60 days or less are valued at either
amortized cost or original cost plus accrued interest receivable, both of which
approximate market value. All other securities and assets, including any
restricted and/or illiquid securities, will be valued at their fair value as
determined pursuant to procedures adopted by the Trustees.
Each Fund may enter into repurchase agreements with domestic commercial
banks and registered broker/dealers whereby the Fund, through its custodian,
receives delivery of the underlying securities. The market value of these
securities will be at least equal at all times to the total amount of the
repurchase obligation, including the interest factor. The Fund bears a risk of
loss in the event that the other party to a repurchase agreement defaults on its
obligations and the Fund is delayed or prevented from exercising its right to
dispose of the underlying securities including the risk of a possible decline in
the value of the underlying securities during the period while the Fund seeks to
assure its rights. Each Fund's investment adviser, acting under supervision of
the Board of Trustees, reviews the value of the collateral and the
creditworthiness of those banks and dealers with which the Fund enters into
repurchase agreements to evaluate potential risks. In the event of counterparty
default, the Fund has the right to use the underlying securities to offset the
loss.
b) Foreign Currency Transactions: With respect to the Funds that invest in
foreign securities, transactions denominated in foreign currencies are recorded
in the Fund's records at the current prevailing exchange rate. Asset and
liability accounts that are denominated in a foreign currency are adjusted to
reflect the current exchange rate at the end of the period. Transaction gains or
losses resulting from changes in the exchange rate during the reporting period
or upon settlement of the foreign currency transaction are reported in
operations for the current period. Investing in securities of foreign companies
and foreign governments involves special risks and considerations not typically
associated with investing in U.S. companies and the U.S. Government. These risks
include reevaluation of currencies and future adverse political and economic
developments. Moreover, securities of many foreign companies and foreign
governments and their markets may be less liquid and their prices more volatile
than those of securities of comparable U.S. companies and the U.S. Government.
It is not practicable to isolate the portion of the results of operations
arising as a result of changes in foreign exchange rates from the fluctuations
arising from changes in the market prices of securities during the period.
c) Options: When a Fund writes a covered call or a put option, an amount equal
to the premium received by it is included in the Fund's Statement of Assets and
Liabilities as an asset and as an equivalent liability. The amount of the
liability is subsequently "marked to market" to reflect the current market value
of the option written. The current market value of a written option is the last
reported sale price on the principal exchange on which such option is traded or,
if no sales are reported, the mean between the last reported bid and asked
prices. If an option which the Fund has written either expires on its stipulated
expiration date, or if the Fund enters into a closing purchase transaction, the
Fund realizes a gain (or loss if the cost of the closing transaction exceeds the
premium received when the option was written) without regard to any unrealized
gain or loss on the underlying security, and the liability related to such
option is extinguished. If a call option which the Fund has written is
exercised, the Fund realizes a gain or loss from
70/PIMCO Advisors Funds
<PAGE>
Notes to Financial Statements (unaudited)--Continued
================================================================================
the sale of the underlying security and the proceeds from such sale are
increased by the premium originally received. If a put option which the Fund has
written is exercised, the amount of the premium originally received will reduce
the cost of the security which the Fund purchases upon exercise of the option.
The premium paid by the Fund for the purchase of a call or put option is
included in the Fund's Statement of Assets and Liabilities as an investment and
subsequently "marked to market" to reflect the current market value of the
option purchased. The current market value of a purchased option is the last
reported sale price on the principal exchange on which such option is traded or,
if no sales are reported, the mean between the last reported bid and asked
prices. If an option which the Fund has purchased expires on its stipulated
expiration date, the Fund realizes a loss in the amount of the cost of the
option. If the Fund enters into a closing transaction, it realizes a gain or
loss, depending on whether the proceeds from the sale are greater or less than
the cost of the option. If the Fund exercises a put option, it realizes a gain
or loss from the sale of the underlying security and the proceeds from such sale
will be decreased by the premium originally paid. If the Fund exercises a call
option, the cost of the security which the Fund purchases upon exercise will be
increased by the premium originally paid.
d) Futures Contracts: Initial margin deposits made upon entering into futures
contracts are recognized as assets due from the broker (the Fund's agent in
acquiring the futures position). During the period the futures contract is open,
changes in the value of the contract are recognized as unrealized gains or
losses by "marking to market" on a daily basis to reflect the market value of
the contract at the end of each day's trading.
Variation margin payments are received or made, depending upon whether
unrealized gains or losses are incurred. When the contract is closed, the Fund
records a realized gain or loss equal to the difference between the proceeds
from (or cost of) the closing transaction and the Fund's basis in the contract.
Open futures contracts at March 31, 1996 were as follows ($ in thousands):
<TABLE>
<CAPTION>
Unrealized
Market Appreciation
Cost Value (Depreciation)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
International Fund
Long Hang Seng Index HK$ (4/96) $ 787 $ 776 $(11)
Long LIFFE FT-SE 100 Index BP (6/96) 3,617 3,679 62
---------------------------------
$ 51
====
Global Income Fund
Long U.S. Treasury 10 Year Note (6/96) $1,757 $1,742 $(15)
Long Commonwealth of Australia
10 Year Note A$ (6/96) 92 93 1
Long Republic of Germany 10 Year
Note DM (6/96) 486 489 3
---------------------------------
$(11)
====
</TABLE>
<TABLE>
<CAPTION>
Unrealized
Market Appreciation
Cost Value (Depreciation)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Total Return Income Fund
Long U.S. Treasury 10 Year Note (6/96) $13,718 $13,722 $ 4
Long U.S. Treasury 30 Year Bond (6/96) 12,744 12,819 75
Long Republic of Germany 10 Year
Note DM (6/96) 1,662 1,629 (33)
- -------------------------------------------------------------------------
$ 46
=====
U.S. Government Fund
Long U.S. Treasury 5 Year Note (6/96) $ 2,074 $ 2,032 $ (42)
Long U.S. Treasury 10 Year Note (6/96) 42,558 42,582 24
Long U.S. Treasury 30 Year Bond (6/96) 11,310 11,147 (163)
- -------------------------------------------------------------------------
$(181)
=====
Short-Intermediate Fund
Long U.S. Treasury 5 Year Note (6/96) $ 3,479 $ 3,423 $ (56)
=====
</TABLE>
e) Forward Foreign Currency Contracts: Forward foreign currency contracts are
valued at the forward rate, and are marked to market daily. The change in market
value is recorded by the Fund as an unrealized gain or loss. When the contract
is closed, the Fund records a realized gain or loss equal to the difference
between the value of the contract at the time it was opened and the value at the
time it was closed.
Forward foreign currency contracts are contracts for delayed delivery of
financial interests in which the seller agrees to make delivery at a specified
future date of a specified financial instrument, at a specified price or yield.
Risks arise from changes in the market value of the underlying instruments and
from the possible inability of counterparties to meet the terms of their
contracts. Credit risk is limited to amounts recorded as unrealized appreciation
on open contracts.
f) Derivatives and Off Balance Sheet Risk: A Fund's use of futures contracts,
forward foreign currency contracts and options may involve, to varying degrees,
elements of market risk in excess of the amount recognized in the Statement of
Assets and Liabilities. These derivative financial instruments ("derivatives")
are used to adjust the risk and return characteristics of a Fund's portfolio.
Derivatives are not used for the purpose of leverage. The objective in buying or
selling a derivative instrument is to increase or decrease a Fund's exposure to
changing security prices, interest rates or currency exchange rates. If the
Manager misjudges market conditions or employs a strategy that does not
correlate well with the Fund's other investments, use of these derivatives could
result in a loss, regardless of the Manager's original intent to reduce risk.
g) Security Transactions: Security transactions are recorded on trade-date.
Interest income is recorded on the accrual basis.
Realized gains or losses on sales of investments are determined on the
identified cost basis for accounting and tax purposes.
Semi-Annual Report/71
<PAGE>
Notes to Financial Statements (unaudited)--Continued
================================================================================
Purchases of securities under agreements to resell are carried at cost, and
the related accrued interest is included in interest receivable.
h) Federal Taxes: Each of the Funds is a separate entity for federal income tax
purposes. It is each Fund's policy to qualify as a regulated investment company
by complying with the requirements of the Internal Revenue Code applicable to
regulated investment companies, and to pay out all its net investment income and
net capital gains to its shareholders. Therefore, no federal income tax
provision is required.
i) Equalization: Prior to October 1, 1995, the Equity Income and Value Funds
used equalization accounting to keep a continuing shareholder's per share
interest in undistributed net investment income unaffected by shareholder
activity. This was accomplished by allocating a per share portion of the
proceeds from sales and the cost of redemptions of fund shares to undistributed
net investment income. As of October 1, 1995, these Funds discontinued using
equalization. This change has no effect on the Funds' net assets, net asset
values per share, or their net increases (decreases) in net assets resulting
from operations. Discontinuing the use of book equalization will result in
simpler financial statements. For the Equity Income Fund, the cumulative effect
of the change was to decrease undistributed net investment income and increase
paid in capital as previously reported from commencement of operations through
September 30, 1995 by $191,313. For the Value Fund, the cumulative effect of the
change was to decrease undistributed net investment income and increase paid in
capital as previously reported from commencement of operations through September
30, 1995 by $21,561.
j) Expenses: Expenses directly attributable to each Fund are charged to that
Fund's operations; expenses which are applicable to all Funds are allocated
among such Funds on a basis deemed fair and equitable by the Trustees, usually
on the basis of relative net assets.
k) Organization Costs: Costs incurred in connection with each Fund's
organization and registration are amortized on a straight-line basis over the
period of benefit, not to exceed 60 months.
l) Dividends and Distributions: Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Income distributions and
capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for foreign currency
transactions, original issue discount, market discount and net operating losses.
m) Estimates: The preparation of financial statements in accordance with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from those estimates.
- --------------------------------------------------------------------------------
3. Fees and Related Party Transactions
- --------------------------------------------------------------------------------
a) Investment Advisory Fees: PIMCO Advisors L.P. (the "Manager") is the
investment manager of each of the PIMCO Advisors Funds. The Manager manages the
day-to-day investment affairs and establishes investment policies for the Trust,
and pays all salaries, fees and expenses of officers and trustees of the Trust
who are affiliated with the Manager. Each of the Funds also has a sub-adviser
which, under the supervision of the Manager, directs the investments of the
Fund's assets. Other than the sub-adviser of the Precious Metals Fund, all of
the sub-advisers are affiliates of the Manager.
Under the Management Contracts between the Trust and the Manager relating to
each Fund, the Manager is paid at the percentages shown below of the relevant
Fund's average daily net assets for its services to the Trust and the Fund.
Pursuant to Sub-adviser Agreements between the Manager and each of the
sub-advisers with respect to the Funds advised by each, the Manager pays to each
sub-adviser, out of the fee received by the Manager under the relevant
Management Contract, the following percentages of the relevant Fund's average
daily net assets as compensation for the services provided by the sub-adviser.
<TABLE>
<CAPTION>
Investment Sub-adviser Fee
Advisory Fee Paid By Manager
(as % of net assets) Sub-Adviser (as % of net assets)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Equity Income Fund .75% of first Columbus .375% of first
$200 million Circle $200 million
.70% of amounts Investors .350% of amounts
over $200 million over $200 million
Value Fund .70% NFJ Investment .350%
Group
Growth Fund .70% of first Columbus .350% of first
$200 million Circle $200 million
.65% of amounts Investors .325% of amounts
over $200 million over $200 million
Target Fund .75% of first Columbus .375% of first
$200 million Circle $200 million
.70% of amounts Investors .350% of amounts
over $200 million over $200 million
Discovery Fund .75% of first Cadence Capital .375% of first
$200 million Management $200 million
.70% of amounts .350% of amounts
over $200 million over $200 million
</TABLE>
72/PIMCO Advisors Funds
<PAGE>
Notes to Financial Statements (unaudited)--Continued
================================================================================
<TABLE>
<CAPTION>
Investment Sub-adviser Fee
Advisory Fee Paid By Manager
(as % of net assets) Sub-Adviser (as % of net assets)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Opportunity Fund .75% of first Columbus .375% of first
$200 million Circle $200 million
.70% of amounts Investors .350% of amounts
over $200 million over $200 million
Innovation Fund .75% of first Columbus .375% of first
$200 million Circle $200 million
.70% of amounts Investors .350% of amounts
over $200 million over $200 million
International Fund .80% Blairlogie .40%
Capital
Management
Precious Metals Fund .75% of first Van Eck .375% of first
$200 million Associates $200 million
.70% of amounts Corporation .350% of amounts
over $200 million over $200 million
Global Income Fund .70% of first Pacific .350% of first
$250 million Investment $250 million
.60% of amounts Management .300% of amounts
over $250 million Companyover $250 million
High Income Fund .60% of first Pacific .25%
$250 million Investment
.50% of amounts Management
over $250 million Company
Total Return
Income Fund .60% of first Pacific .25%
$250 million Investment
.50% of amounts Management
over $250 million Company
Short-Intermediate
Fund .50% of first Pacific .25%
$250 million Investment
.45% of next Management
$250 million Company
.40% of amounts
over $500 million
U.S. Government Fund .60% of first Pacific .25%
$250 million Investment
.50% of amounts Management
over $250 million Company
Tax Exempt Fund .60% Columbus .30%
Circle
Investors
Money Market Fund .50% of first Columbus .250% of first
$250 million Circle $250 million
.40% of amounts Investors .200% of amounts
over $250 million over $250 million
</TABLE>
The Manager's compensation with respect to any Fund is subject to reduction to
the extent in any year that the expenses (generally excluding brokerage
commissions, taxes, interest, distribution-related expenses and extraordinary
expenses) of such Fund exceed the statutory limits of any jurisdiction in which
shares of such Fund are qualified for offer and sale. The most restrictive of
such limitations as of the date of these financial statements is 2 1/2% of the
first $30 million of average net assets, 2% of the next $70 million and 1 1/2%
of any excess over $100 million.
The Manager has voluntarily undertaken to reduce its investment advisory fee
with respect to the Money Market Fund to .10% of the Fund's daily net assets
until further notice. The Manager also waived a portion of its investment
advisory fees with respect to the Global Income Fund.
b) Distribution and Servicing Fees: Pursuant to Distribution and Servicing Plans
adopted by the Trust, the Trust compensates the distributor, PIMCO Advisors
Distribution Company for services provided and expenses incurred in connection
with assistance rendered in the sale of Trust shares and services rendered to
shareholders and for maintenance of shareholder accounts. As compensation, the
Trust pays the distributor a distribution fee with respect to the Class B and
Class C shares of each Fund with the exception of the Opportunity Fund which
does not offer Class B shares equal to .75% of the Fund's average daily net
assets attributable to the respective class of shares, except that the fee is
.50% per annum in the case of Class C shares of the Short-Intermediate Fund and
the fee is not charged in the case of the Money Market Fund (subject to increase
by action of the Trustees to a rate not exceeding .75% per annum). The Trust
pays the distributor a servicing fee with respect to Class A, Class B and Class
C shares of each Fund equal to .25% of the average daily net asset value of
Class A, Class B and Class C shares (.10% per annum in the case of the Money
Market Fund, subject to increase by action of the Trustees to a rate not
exceeding .25% per annum).
C) Trustee Fees: The Trustees have approved a unified fee plan, covering
compensation from both of the Trusts for which they serve as independent
Trustees, the PIMCO Advisors Funds and the Cash Accumulation Trust. The fee is
allocated between the Trusts and among the Funds of the Trusts based on relative
net assets. The total Trustees' fees to be allocated are as follows:
<TABLE>
<CAPTION>
<S> <C>
Annual Retainer $35,000
Meeting Fee (each meeting attended) 3,000
Committees:
Contract Chairman 6,000
Audit Chairman 2,000
Audit Member 1,000
</TABLE>
In addition, the Trustees receive reimbursement for travel and out-of-pocket
costs.
d) Contingent Deferred Sales Charge: A contingent deferred sales charge is
imposed on Class B and Class C shares if an investor redeems an amount which
causes the current value of the investor's account for a Fund to fall below the
total dollar amount of investments made subject to a deferred sales charge,
except that no sales charge is imposed if the portion of the investment redeemed
is attributable to reinvested dividends or capital gains distributions or is
derived from increases in the value of the account above the amount invested
subject to a deferred sales charge. Whether a
Semi-Annual Report/73
<PAGE>
Notes to Financial Statements (unaudited)--Continued
================================================================================
contingent deferred sales charge is imposed and the amount of the charge will
depend on the number of years since the investor made an investment from which
an amount is being redeemed and the date such investment was made. Investments
made in Class C shares on or after July 1, 1991 are subject to a contingent
deferred sales charge of 1% during the first 12 months after the purchase. For
investments made in Class C shares prior to July 1, 1991 the redemption price
per share in the first year following purchase is 95% of the net asset value per
share. In years two, three, four and five following purchase, the redemption
price per share as a percentage of the net asset value per share increases to
96%, 97%, 98% and 98%, respectively. For investments made in Class B shares the
redemption price per share in the first year following purchase is 95% of the
net asset value per share. In years two, three, four, five and six following
purchase the redemption price increases to 96%, 97%, 97%, 98% and 99%,
respectively. Any sales charges imposed on redemptions are paid to the
distributor of shares of the Trust. For the six months ended March 31, 1996,
those charges amounted to $348,720.
e) Initial Sales Charge: For the six months ended March 31, 1996, sales charges
on Class A shares amounted to $2,052,921, of which $293,672 was retained by the
Trust's distributor.
- --------------------------------------------------------------------------------
4. Purchases and Sales of Securities
- --------------------------------------------------------------------------------
During the six months ended March 31, 1996, purchases and sales of securities,
other than securities subject to repurchase transactions and short-term interest
bearing securities, were as follows ($ in thousands):
<TABLE>
<CAPTION>
Purchases Sales
- --------------------------------------------------------------------------------
<S> <C> <C>
Equity Income Fund $202,725 $197,508
Value Fund 27,223 4,663
Growth Fund 647,556 575,559
Target Fund 733,766 652,154
Discovery Fund 49,018 27,224
Opportunity Fund 331,006 427,660
Innovation Fund 94,644 65,525
International Fund 127,437 130,574
Precious Metals Fund 4,708 10,868
Global Income Fund 40,377 29,543
High Income Fund 77,309 35,339
Total Return Income Fund 390,226 241,422
Tax Exempt Fund 17,285 19,962
U.S. Government Fund 239,417 216,690
Short-Intermediate Fund 132,815 88,901
</TABLE>
- --------------------------------------------------------------------------------
5. Share Capital
- --------------------------------------------------------------------------------
The Trust has an unlimited authorized number of shares of beneficial interest
(par value of $.00001) which may, without shareholder approval, be divided into
an unlimited number of series of such shares, and which are presently divided
into sixteen series of shares, one series underlying each Fund. Each of the
Funds, except for the Opportunity Fund which does not offer Class B shares, are
further divided into three classes, designated Class A, Class B and Class C
shares.
Class A transactions in shares of beneficial interest were as follows
(amounts in thousands):
<TABLE>
<CAPTION>
Period Ended Year Ended
March 31, 1996 September 30, 1995
------------------------------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Equity Income Fund
Sold 157 $ 2,936 261 $ 3,289
Issued as reinvestment of
dividends 55 782 23 292
Reacquired (128) (1,840) (565) (7,089)
------------------------------------------------
Net increase (decrease) 84 $ 1,878 (281) $ (3,508)
================================================
Value Fund
Sold 375 $ 4,190 242 $ 2,473
Issued as reinvestment of
dividends 4 46 1 14
Reacquired (51) (580) (10) (102)
-----------------------------------------------
Net increase (decrease) 328 $ 3,656 233 $ 2,385
================================================
Growth Fund
Sold 661 $ 16,270 1,409 $ 32,050
Issued as reinvestment of
dividends 608 14,386 263 5,386
Reacquired (871) (21,425) (1,306) (29,329)
------------------------------------------------
Net increase (decrease) 398 $ 9,231 366 $ 8,107
================================================
Target Fund
Sold 11,347 $ 175,154 13,544 $ 191,129
Issued as reinvestment of
dividends 817 12,468 80 1,005
Reacquired (10,903) (168,265) (13,087) (185,119)
------------------------------------------------
Net increase (decrease) 1,261 $ 19,357 537 $ 7,015
================================================
Discovery Fund
Sold 356 $ 3,732 730 $ 7,663
Issued as reinvestment of
dividends 0 0 0 0
Reacquired (151) (1,582) (27) (286)
------------------------------------------------
Net increase (decrease) 205 $ 2,150 703 $ 7,377
================================================
Opportunity Fund
Sold 627 $ 20,505 807 $ 24,964
Issued as reinvestment of
dividends 663 21,541 93 2,557
Reacquired (885) (29,008) (1,108) (34,507)
------------------------------------------------
Net increase (decrease) 405 $ 13,038 (208) $ (6,986)
================================================
Innovation Fund
Sold 1,553 $ 21,669 2,585 $ 30,962
Issued as reinvestment of
dividends 43 632 0 0
Reacquired (1,201) (16,832) (669) (8,736)
------------------------------------------------
Net increase (decrease) 395 $ 5,469 1,916 $ 22,226
================================================
</TABLE>
74/PIMCO Advisors Funds
<PAGE>
Notes to Financial Statements (unaudited)--Continued
================================================================================
<TABLE>
<CAPTION>
Period Ended Year Ended
March 31, 1996 September 30, 1995
------------------------------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
International Fund
Sold 2,741 $ 26,661 2,230 $ 26,178
Issued as reinvestment of
dividends 0 0 33 393
Reacquired (2,631) (25,428) (2,592) (30,562)
------------------------------------------------
Net increase (decrease) 110 $ 1,233 (329) $ (3,991)
================================================
Precious Metals Fund
Sold 4,503 $ 57,940 6,548 $ 77,229
Issued as reinvestment of
dividends 0 0 0 0
Reacquired (4,558) (59,271) (6,720) (79,721)
------------------------------------------------
Net increase (decrease (55) $(1,331) (172) $ (2,492)
================================================
Global Income Fund
Sold 668 $ 6,758 0 $ 0
Issued as reinvestment of
dividends 0 3 0 0
Reacquired (1) (12) 0 0
------------------------------------------------
Net increase (decrease) 667 $ 6,749 0 $ 0
================================================
High Income Fund
Sold 1,752 $ 14,169 870 $ 6,731
Issued as reinvestment of
dividends 38 305 30 226
Reacquired (376) (3,029) (493) (3,774)
------------------------------------------------
Net increase (decrease 1,414 $ 11,445 407 $ 3,183
================================================
Total Return Income Fund
Sold 2,663 $ 28,586 4,276 $ 44,172
Issued as reinvestment of
dividends 160 1,705 44 462
Reacquired (1,400) (14,955) (796) (8,271)
------------------------------------------------
Net increase (decrease) 1,423 $ 15,336 3,524 $ 36,363
================================================
Tax Exempt Fund
Sold 144 $ 1,750 59 $ 678
Issued as reinvestment of
dividends 3 36 4 51
Reacquired (34) (418) (78) (891)
------------------------------------------------
Net increase (decrease) 113 $ 1,368 (15) $ (162)
================================================
U.S. Government Fund
Sold 466 $ 4,299 505 $ 4,468
Issued as reinvestment of
dividends 45 413 77 684
Reacquired (428) (3,935) (565) (4,959)
------------------------------------------------
Net increase (decrease) 83 $ 777 17 $ 193
================================================
Short-Intermediate Fund
Sold 4,762 $ 46,393 530 $ 4,930
Issued as reinvestment of
dividends 40 388 39 364
Reacquired (300) (2,919) (434) (4,038)
------------------------------------------------
Net increase (decrease) 4,502 $ 43,862 135 $ 1,256
================================================
<CAPTION>
Period Ended Year Ended
March 31, 1996 September 30, 1995
------------------------------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Money Market Fund
Sold 256,805 $256,805 259,220 $259,220
Issued as reinvestment of
dividends 275 275 475 475
Reacquired (248,641) (248,641) (259,075) (259,075)
------------------------------------------------
Net increase (decrease) 8,439 $ 8,439 620 $ 620
================================================
Class B transactions in shares of beneficial interest were as follows (amounts
in thousands):
Equity Income Fund
Sold 238 $ 3,469 127 $ 1,722
Issued as reinvestment of
dividends 8 120 1 5
Reacquired (5) (69) (3) (34)
------------------------------------------------
Net increase (decrease) 241 $ 3,520 125 $ 1,693
================================================
Value Fund
Sold 622 $ 6,959 376 $ 3,853
Issued as reinvestment of
dividends 4 47 1 13
Reacquired (43) (482) (5) (53)
------------------------------------------------
Net increase (decrease) 583 $ 6,524 372 $ 3,813
================================================
Growth Fund
Sold 604 $ 14,345 314 $ 7,526
Issued as reinvestment of
dividends 49 1,119 0 0
Reacquired (40) (969) (6) (144)
Net increase (decrease) 613 $ 14,495 308 $ 7,382
================================================
Target Fund
Sold 885 $ 13,317 475 $ 7,270
Issued as reinvestment of
dividends 74 1,097 0 0
Reacquired (30) (453) (5) (62)
Net increase (decrease) 929 $ 13,961 470 $ 7,208
================================================
Discovery Fund
Sold 697 $ 7,265 1,011 $ 10,649
Issued as reinvestment of
dividends 0 0 0 0
Reacquired (90) (941) (14) (150)
------------------------------------------------
Net increase (decrease) 607 $ 6,324 997 $ 10,499
================================================
Innovation Fund
Sold 599 $ 8,481 458 $ 6,372
Issued as reinvestment of
dividends 14 211 0 0
Reacquired (63) (870) (14) (197)
------------------------------------------------
Net increase (decrease) 550 $ 7,822 444 $ 6,175
================================================
</TABLE>
Semi-Annual Report/75
<PAGE>
Notes to Financial Statements (unaudited)--Continued
================================================================================
<TABLE>
<CAPTION>
Period Ended Year Ended
March 31, 1996 September 30, 1995
------------------------------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
International Fund
Sold 265 $ 3,170 43 $ 499
Issued as reinvestment of
dividends 0 0 0 0
Reacquired (40) (479) 0 0
------------------------------------------------
Net increase (decrease) 225 $ 2,691 43 $ 499
================================================
Precious Metals Fund
Sold 127 $ 1,584 28 $ 328
Issued as reinvestment of
dividends 0 0 0 0
Reacquired (39) (493) (7) (81)
------------------------------------------------
Net increase (decrease) 88 $ 1,091 21 $ 247
================================================
Global Income Fund
Sold 170 $ 1,772 0 $ 0
Issued as reinvestment of
dividends 0 3 0 0
Reacquired 0 0 0 0
------------------------------------------------
Net increase (decrease) 170 $ 1,775 0 $ 0
================================================
High Income Fund
Sold 1,585 $ 12,748 571 $ 4,491
Issued as reinvestment of
dividends 23 183 4 26
Reacquired (24) (196) 0 0
------------------------------------------------
Net increase (decrease) 1,584 $ 12,735 575 $ 4,517
================================================
Total Return Income Fund
Sold 2,333 $ 25,044 825 $ 8,780
Issued as reinvestment of
dividends 62 660 4 45
Reacquired (130) (1,395) (8) (94)
------------------------------------------------
Net increase (decrease) 2,265 $ 24,309 821 $ 8,731
================================================
Tax Exempt Fund
Sold 108 $ 1,306 27 $ 318
Issued as reinvestment of
dividends 0 10 0 0
Reacquired (7) (81) (3) (30)
------------------------------------------------
Net increase (decrease) 101 $ 1,235 24 $ 288
================================================
U.S. Government Fund
Sold 297 $ 2,749 183 $ 1,658
Issued as reinvestment of
dividends 6 58 1 8
Reacquired (31) (289) (1) (11)
------------------------------------------------
Net increase (decrease) 272 $ 2,518 183 $ 1,655
================================================
Short-Intermediate Fund
Sold 130 $ 1,267 109 $ 1,043
Issued as reinvestment of
dividends 3 29 1 9
Reacquired (23) (225) (12) (116)
------------------------------------------------
Net increase (decrease) 110 $ 1,071 98 $ 936
================================================
<CAPTION>
Period Ended Year Ended
March 31, 1996 September 30, 1995
------------------------------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Money Market Fund
Sold 1,170 $ 1,170 104 $ 104
Issued as reinvestment of
dividends 5 5 0 0
Reacquired (904) (904) (83) (83)
------------------------------------------------
Net increase (decrease) 271 $ 271 21 $ 21
================================================
Class C transactions in shares of beneficial interest were as follows (amounts
in thousands):
Equity Income Fund
Sold 1,434 $ 20,715 2,571 $ 32,020
Issued as reinvestment of
dividends 699 9,891 225 2,833
Reacquired (1,120) (16,133) (4,777) (59,787)
------------------------------------------------
Net increase (decrease) 1,013 $ 14,473 (1,981) $(24,934)
================================================
Value Fund
Sold 1,416 $ 15,877 632 $ 6,515
Issued as reinvestment of
dividends 8 98 2 26
Reacquired (159) (1,797) (12) (125)
------------------------------------------------
Net increase (decrease) 1,265 $ 14,178 622 $ 6,416
================================================
Growth Fund
Sold 6,582 $156,678 11,100 $244,929
Issued as reinvestment of
dividends 6,164 140,591 2,780 55,575
Reacquired (6,655) (159,151) (12,582) (275,157)
------------------------------------------------
Net increase (decrease) 6,091 $138,118 1,298 $ 25,347
================================================
Target Fund
Sold 9,333 $140,832 20,641 $283,139
Issued as reinvestment of
dividends 5,535 82,368 537 6,668
Reacquired (7,176) (108,018) (15,505) (213,112)
------------------------------------------------
Net increase (decrease) 7,692 $115,182 5,673 $ 76,695
================================================
Discovery Fund
Sold 1,690 $ 17,664 1,930 $ 20,459
Issued as reinvestment of
dividends 0 0 0 0
Reacquired (556) (5,809) (65) (703)
------------------------------------------------
Net increase (decrease 1,134 $ 11,855 1,865 $ 19,756
================================================
Opportunity Fund
Sold 5,247 $164,892 7,303 $227,266
Issued as reinvestment of
dividends 4,255 131,687 576 15,401
Reacquired (5,657) (179,938) (8,616) (265,954)
------------------------------------------------
Net increase (decrease) 3,845 $116,641 (737) $(23,287)
================================================
</TABLE>
76/PIMCO Advisors Funds
<PAGE>
Notes to Financial Statements (unaudited)--Continued
================================================================================
<TABLE>
<CAPTION>
Period Ended Year Ended
March 31, 1996 September 30, 1995
------------------------------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Innovation Fund
Sold 3,529 $ 49,728 5,445 $ 66,152
Issued as reinvestment of
dividends 103 1,501 0 0
Reacquired (2,153) (29,877) (1,081) (14,293)
------------------------------------------------
Net increase (decrease) 1,479 $ 21,352 4,364 $ 51,859
================================================
International Fund
Sold 3,648 $ 38,248 6,697 $ 76,415
Issued as reinvestment of
dividends 0 0 454 5,207
Reacquired (4,783) (51,285) (12,263) (139,029)
Net increase (decrease) (1,135) $(13,037) (5,112) $(57,407)
================================================
Precious Metals Fund
Sold 6,298 $ 79,561 10,551 $120,945
Issued as reinvestment of
dividends 0 0 0 0
Reacquired (6,447) (81,589) (11,561) (132,496)
------------------------------------------------
Net increase (decrease) (149) $ (2,028) (1,010) $(11,551)
================================================
Global Income Fund
Sold 188 $ 1,963 0 $ 0
Issued as reinvestment of
dividends 0 4 0 0
Reacquired 0 0 0 0
------------------------------------------------
Net increase (decrease) 188 $ 1,967 0 $ 0
================================================
High Income Fund
Sold 4,569 $ 36,570 3,379 $ 25,818
Issued as reinvestment of
dividends 468 3,738 872 6,583
Reacquired (2,425) (19,374) (8,149) (60,958)
Net increase (decrease) 2,612 $ 20,934 (3,898) $(28,557)
================================================
Total Return Income Fund
Sold 3,959 $ 42,414 4,809 $ 50,148
Issued as reinvestment of
dividends 244 2,594 59 623
Reacquired (732) (7,828) (603) (6,335)
------------------------------------------------
Net increase (decrease) 3,471 $ 37,180 4,265 $ 44,436
================================================
Tax Exempt Fund
Sold 207 $ 2,502 362 $ 4,118
Issued as reinvestment of
dividends 62 744 157 1,784
Reacquired (693) (8,364) (2,019) (22,758)
------------------------------------------------
Net increase (decrease) (424) $ (5,118) (1,500) $(16,856)
================================================
U.S. Government Fund
Sold 1,574 $ 12,027 2,046 $ 18,037
Issued as reinvestment of
dividends 244 4,738 1,164 10,237
Reacquired (3,841) (35,478) (13,959) (121,610)
------------------------------------------------
Net increase (decrease) (2,023) $(18,713) (10,749) $(93,336)
================================================
<CAPTION>
Period Ended Year Ended
March 31, 1996 September 30, 1995
------------------------------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Short-Intermediate Fund
Sold 2,860 $ 27,700 5,708 $ 53,690
Issued as reinvestment of
dividends 137 1,328 321 3,013
Reacquired (3,014) (29,181) (8,682) (81,327)
------------------------------------------------
Net increase (decrease) (17) $ (153) (2,653) $(24,624)
================================================
Money Market Fund
Sold 356,800 $356,800 554,885 $554,885
Issued as reinvestment of
dividends 1,470 1,470 3,480 3,480
Reacquired (349,445) (349,445) (573,064) (573,064)
------------------------------------------------
Net increase (decrease) 8,825 $ 8,825 (14,699) $(14,699)
================================================
</TABLE>
- --------------------------------------------------------------------------------
6. Written Option Activity
- --------------------------------------------------------------------------------
Written option activity for the period ended March 31, 1996 were as follows
(amounts in thousands):
<TABLE>
<CAPTION>
Number
Amount of of
Premiums Options
- --------------------------------------------------------------------------------
<S> <C> <C>
Equity Income Fund
Options outstanding at September 30, 1995 $ 0 0
Options written during the period ended
March 31, 1996 177 1
Options cancelled in closing purchase transactions(79) 0
Options expired prior to exercise 0 0
Options exercised (98) (1)
-------------------
Options outstanding at March 31, 1996 $ 0 0
===================
Closing transactions resulted in a net realized gain of $69.
Growth Fund
Options outstanding at September 30, 1995 $ 3,167 11
Options written during the period ended
March 31, 1996 13,011 44
Options cancelled in closing purchase transactions(10,383) (34)
Options expired prior to exercise (2,872) (14)
Options exercised (1,376) (2)
-------------------
Options outstanding at March 31, 1996x $ 1,547 5
===================
Closing transactions resulted in a net realized loss of $8,841.
Target Fund
Options outstanding at September 30, 1995 $ 164 1
Options written during the period ended
March 31, 1996 1,758 8
Options cancelled in closing purchase transactions (1,143) (5)
Options expired prior to exercise (134) 0
Options exercised (205) (1)
-------------------
Options outstanding at March 31, 1996 $ 440 3
===================
Closing transactions resulted in a net realized gain of $830.
</TABLE>
Semi-Annual Report/77
<PAGE>
Notes to Financial Statements (unaudited)--Continued
================================================================================
<TABLE>
<CAPTION>
Number
Amount of of
Premiums Options
- --------------------------------------------------------------------------------
<S> <C> <C>
Opportunity Fund
Options outstanding at September 30, 1995 $ 4,970 15
Options written during the period ended
March 31, 1996 22,702 105
Options cancelled in closing purchase transactions (18,130) (76)
Options expired prior to exercise (3,144) (14)
Options exercised (3,432) (12)
-------------------
Options outstanding at March 31, 1996 $ 2,966 18
===================
Closing transactions resulted in a net realized loss of $7,769.
Innovation Fund
Options outstanding at September 30, 1995 $ 0 0
Options written during the period ended
March 31, 1996 1,028 3
Options cancelled in closing purchase transactions (874) (3)
Options expired prior to exercise (45) 0
Options exercised 0 0
-------------------
Options outstanding at March 31, 1996 $ 109 0
===================
Closing transactions resulted in a net realized gain of $267.
Global Income Fund
Options outstanding at September 30, 1995 $ 0 0
Options written during the period ended
March 31, 1996 1 1
Options cancelled in closing purchase transactions 0 0
Options expired prior to exercise 0 0
Options exercised 0 0
-------------------
Options outstanding at March 31, 1996 $ 1 1
===================
High Income Fund
Options outstanding at September 30, 1995 $ 7 0
Options written during the period ended
March 31, 1996 0 0
Options cancelled in closing purchase transactions 0 0
Options expired prior to exercise 0 0
Options exercised (7) 0
-------------------
Options outstanding at March 31, 1996 $ 0 0
===================
Total Return Income Fund
Options outstanding at September 30, 1995 $ 32 0
Options written during the period ended
March 31, 1996 101 0
Options cancelled in closing purchase transactions (44) 0
Options expired prior to exercise (89) 0
Options exercised 0 0
-------------------
Options outstanding at March 31, 1996 $ 0 0
===================
Closing transactions resulted in a net realized gain of $41.
U.S. Government Fund
Options outstanding at September 30, 1995 $ 101 0
Options written during the period ended
March 31, 1996 4 0
Options cancelled in closing purchase transactions (101) 0
Options expired prior to exercise 0 0
Options exercised 0 0
-------------------
Options outstanding at March 31, 1996 $ 4 0
===================
Closing transactions resulted in a net realized loss of $1,783.
<CAPTION>
Number
Amount of of
Premiums Options
- --------------------------------------------------------------------------------
<S> <C> <C>
Short-Intermediate Fund
Options outstanding at September 30, 1995 $ 94 0
Options written during the period ended
March 31, 1996 29 0
Options cancelled in closing purchase transactions 0 0
Options expired prior to exercise (123) 0
Options exercised 0 0
-------------------
Options outstanding at March 31, 1996 $ 0 0
===================
</TABLE>
- --------------------------------------------------------------------------------
7. Outstanding Forward Currency Contracts
- --------------------------------------------------------------------------------
Outstanding forward currency contracts at March 31, 1996 were as follows ($ in
thousands):
<TABLE>
<CAPTION>
Unrealized
Market Settlement Appreciation
Value Date (Depreciation)
- -----------------------------------------------------------------------------------
<C> <C> <C> <C>
International Fund
Contracts to Buy:
3,450,000 BP $ 5,265 4/96 $ 8
36,081,603 DM 24,446 4/96 79
11,000,000 SF 9,250 4/96 76
22,100,000 SK 3,303 4/96 30
------- -----
Total contracts to Buy
(Payable Amount $42,071) $42,264 $ 193
======= =====
Contracts to Sell:
3,450,000 BP $ 5,265 4/96 $ (21)
26,139,643 DM 17,709 4/96 (5)
66,000,000 FF 13,113 4/96 (95)
500,000,000 JY 4,684 4/96 62
2,490,000,000 JY 23,381 5/96 136
22,100,000 SK 3,304 4/96 1
350,000,000 SP 2,818 4/96 (18)
------- -----
Total contracts to Sell
(Receivable Amount $70,334) $70,274 $ 60
======= =====
Global Income Fund
Contracts to Buy:
5,664,350 CK $ 208 8/96 $ 2
209,000 DK 37 4/96 (1)
56,088 DK 10 5/96 0
946,827 DM 643 5/96 (5)
136,000 DM 93 1/97 (2)
208,210,100 IL 133 5/96 1
404,000,000 IL 253 9/96 14
310,000 SK 46 5/96 1
31,000,000 SP 248 4/96 3
------- -----
Total contracts to Buy
(Payable Amount $1,658) $ 1,671 $ 13
======= =====
Contracts to Sell:
215,875 A$ $ 169 4/96 $ (2)
30,789 BP 47 4/96 0
50,000 BP 76 5/96 0
249,922 C$ 184 5/96 (1)
245,666 DG 149 4/96 1
209,000 DK 37 4/96 1
Unrealized
</TABLE>
78/PIMCO Advisors Funds
<PAGE>
Notes to Financial Statements (unaudited)--Continued
================================================================================
<TABLE>
<CAPTION>
Unrealized
Market Settlement Appreciation
Value Date (Depreciation)
- -----------------------------------------------------------------------------------
<C> <C> <C> <C>
Global Income Fund (continued)
417,000 DM 286 3/96 2
439,982 DM 299 4/96 1
1,891,218 DM 1,283 5/96 5
511,500 DM 350 12/96 12
1,036,906 FF 205 4/96 (1)
471,369 FM 101 4/96 0
529,300,000 IL 337 5/96 (3)
12,547,105 JY 118 4/96 1
21,585,194 JY 203 5/96 3
67,958 NZ$ 46 4/96 0
4,445,604 SK 664 4/96 5
300,000 SK 45 5/96 0
10,172,393 SP 82 4/96 (1)
2,232,328 SP 17 8/96 0
------- -----
Total contracts to Sell
(Receivable Amount $4,720) $4,698 $ 23
======= =====
Total Return Income Fund
Contracts to Sell:
11,210,061 DM $7,679 12/96 $ 132
------- -----
Total contracts to Sell
(Receivable amount $7,811) $7,679 $ 132
======= =====
Short-Intermediate Fund
Contracts to Sell:
3,896,000 DM $2,669 12/96 $ 16
4,223,000 FM 912 4/96 8
------- -----
Total contracts to Sell
(Receivable Amount $3,605) $3,581 $ 24
======= =====
</TABLE>
- --------------------------------------------------------------------------------
8. Federal Income Taxes
- --------------------------------------------------------------------------------
For federal income tax purposes, the funds indicated below have capital loss
carryforwards as of September 30, 1995, which are available to offset future
capital gains, if any ($ in thousands).
<TABLE>
<CAPTION>
Capital Loss
Carryforward Expiration
- ----------------------------------------------------------------------------------
<S> <C> <C>
Discovery Fund $514 2003
Precious Metals Fund 529 2000
18 2001
High Income Fund 14,400 1997
16,088 1998
28,820 1999
5,495 2002
50,541 2003
Tax Exempt Fund 1,055 2003
U.S. Government Fund 24,887 1996
12,490 1997
12,622 1998
17,277 2002
8,501 2003
Short-Intermediate Fund 1,598 2000
3,550 2002
1,170 2003
</TABLE>
Semi-Annual Report/79
<PAGE>
- --------------------------------------------------------------------------------
PIMCO Advisors Funds
Investments built on expertise
- --------------------------------------------------------------------------------
PIMCO Advisors Funds offer discerning investors unique access to the premier
institutional investment expertise of PIMCO Advisors L.P. Managing over $97
billion in assets ($22 billion in mutual funds), PIMCO Advisors consists of six
institutional investment firms, each specializing in a particular investment
discipline or style. Together their reputation and performance record has
attracted many prestigious institutional clients, including 35 of the 100
largest U.S. corporations.
This material is authorized for use only when preceded or accompanied by a
current PIMCO Advisors Funds prospectus, which describes in greater detail the
investment policies, management fees and other matters of interest to
prospective investors. Please read the prospectus carefully before you invest or
send money.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Manager PIMCO Advisors L.P., 800 Newport Center Drive, Suite 100,
Newport Beach, CA 92660
- --------------------------------------------------------------------------------
Distributor PIMCO Advisors Distribution Company, 2187 Atlantic Street,
Stamford, CT 06902
- --------------------------------------------------------------------------------
Custodian The Bank of New York, 48 Wall Street, New York, NY 10005
- --------------------------------------------------------------------------------
Shareholder Shareholder Services, Inc., P.O. Box 5866, Denver, CO 80217
Servicing Agent
and Transfer Agent
- --------------------------------------------------------------------------------
Legal Counsel Ropes and Gray, One International Place, Boston, MA 02110
- --------------------------------------------------------------------------------
For Account
Information For PIMCO Advisors Funds account information contact your
financial advisor, or if you receive account statements
directly from PIMCO Advisors Funds, you can also call
1-800-426-0107. Telephone representatives are available
Monday-Friday 8:30 am to 8:00 pm eastern time.
- --------------------------------------------------------------------------------
The financial statements included in this report have been taken from the
records of the Trust without examination by the independent accountants.
This is a copy of a report by PIMCO Advisors Funds to its shareholders.
Distribution of this report to persons other than shareholders of the Trust is
authorized only when accompanied by the Trust's Prospectus. This report does not
offer for sale or solicit orders to buy any securities.
PZ 002 (5/96)
PIMCO Advisors BULK RATE
Distribution Company U.S. POSTAGE
PAID
2187 Atlantic Street SMITHTOWN, NY
P I M C O Stamford, CT 06902 PERMIT NO. 700
