Supplement dated December 9, 1996
to the Prospectus and Statement of Additional Information
dated June 15, 1996 of
PIMCO Funds
Changes to the PIMCO Moderate Duration Fund
Administrative Fee
The Administrative Fee of the PIMCO Moderate Duration Fund
(the "Fund") has been reduced from 0.25% to 0.20% of the
Fund's average daily net assets. As such, the Prospectus
and Statement of Additional Information ("SAI") are revised
as follows.
1)On page 6 of the Prospectus, under "Expense
Information - Annual Fund Operating Expenses," the
table showing Institutional Class share expenses of
the Fund should read 0.20% under the column
"Administrative Fee," and 0.45% under the column
"Total Expenses." The table showing Administrative
Class share expenses of the Fund should read 0.20%
under the column "Administrative Fee," and 0.70%
under the column "Total Expenses."
2)On page 7 of the Prospectus, under "Expense
Information - Example of Fund Expenses," the table
showing the example of Institutional Class share
expenses of the Fund should read as follows: 1
year: $5; 3 years: $14; 5 years: $25; 10 years:
$57. The table showing the example of
Administrative Class share expenses of the Fund
should read as follows: 1 year: $7; 3 years: $22;
5 years: $39; 10 years: $87.
3)On page 34 of the Prospectus, under "Management of
the Trust - Advisory and Administrative Fees," and
on page 32 of the SAI under "Management of the Trust
- Fund Administrator" the table showing
Administrative Fees should indicate that the Fund's
Administrative Fee rate is 0.20%.
Duration
In addition, the average portfolio duration of the Fund
has been changed from a two- to four-year time frame to
a two- to five-year frame. As such, the Prospectus is
revised as follows.
1)On page 3 of the Prospectus, under "Prospectus
Summary - Comparison of PIMCO Funds," the Duration
column for the Fund should read "2-5 years."
2)On page 14 of the Prospectus, under "Investment
Objective and Policies - Fixed Income Funds," the
second sentence of the paragraph titled "PIMCO
Moderate Duration Fund" should read: "[t]he average
portfolio duration of this Fund will normally vary
within a two- to five-year time frame based on the
Adviser's forecast for interest rates."
