SUPPLEMENT DATED SEPTEMBER 3, 1996 TO PROSPECTUS AND
STATEMENT OF ADDITIONAL INFORMATION
DATED JUNE 15, 1996 OF PIMCO FUNDS
1. The VersaSTYLE Equity and VersaSTYLE Equity II Funds
have ceased operations and are no longer available for
investment.
2. Certain of the Funds may enter into reverse repurchase
agreements and dollar rolls; delayed delivery, when
issued, and forward commitment transactions; short
sales; foreign currency forward contracts; and certain
transactions involving options, futures, futures
options and swaps. To the extent that these or other
transactions may involve the issuance of "senior
securities" under Section 18(f) of the Investment
Company Act of 1940, the Prospectus and Statement of
Additional Information disclose that a Fund shall
maintain a segregated account consisting of liquid
assets marked-to-market daily, sufficient to cover the
Fund's obligations under the transaction (or, to the
extent permitted by applicable regulation, enter into
certain offsetting positions).
Each instance of this disclosure in the Prospectus
(appearing at pp. 24, 25, 27 and 29), and in the
Statement of Additional Information (appearing at pp.
1, 9, 14, 15, 16, 17, 18, 19, and 20), is hereby
amended to define liquid assets to be assets that are
determined to be liquid by the Adviser, in accordance
with procedures established by the Board of Trustees.
3. Under "Investment Restrictions" on page 21 of the
Prospectus, and page 24 of the Statement of Additional
Information, (J)(b) should read as follows:
(J)(b) for the remaining Funds (except the PIMCO
Foreign, Global and International Funds),
invest greater than 10% of its assets in the
securities of issuers based in NICs.
4. Under "Foreign Securities" on page 26, second
paragraph, second sentence of the Prospectus, and page
8, first paragraph, last sentence of the Statement of
Additional Information, should read as follows:
The PIMCO Short-Term, Low Duration and Low
Duration III Funds limit their investments
in securities of issuers based in NICs to 5%
of their assets, and the remaining Funds
(except the PIMCO Foreign, Global and
International Funds) limit their investments
in securities of issuers based in NICs to
10% of their assets.
5. The PIMCO Strategic Balanced Fund became operational on
June 28, 1996. Accordingly, "Management of the Trust"
on page 32 of the Prospectus is amended as follows:
Fund Portfolio Manager and Business Experience
(past five years)
Short-Term Fund David H. Edington, Managing Director, PIMCO.
StocksPLUS Fund A Fixed Income Portfolio Manager, Mr. Edington
Strategic Balanced Fund joined PIMCO in 1987 and has managed the PIMCO
Short-Term, StocksPLUS, and Strategic Balanced
Funds since their inception, October 7, 1987,
May 14, 1993, and June 28, 1996, respectively.
