<PAGE>
[LOGO OF PIMCO FUNDS APPEARS HERE]
- ---------------------------------
Total Return Fund Pacific
Total Return Fund II Investment
Total Return Fund III Management
Total Return Mortgage Fund Series
Moderate Duration Fund
Low Duration Fund
Low Duration Fund II
Low Duration Fund III
Low Duration Mortgage Fund
Short-Term Fund
Long-Term U.S. Government Fund
Real Return Bond Fund
Foreign Bond Fund
Global Bond Fund
Emerging Markets Bond Fund
High Yield Fund
Money Market Fund
StocksPLUS Fund
Strategic Balanced Fund
- ---------------------------------
Semiannual Report
================================================================================
September 30, 1997
<PAGE>
<TABLE>
<CAPTION>
Contents
<S> <C>
Chairman's Message 1
An Interview with William Gross 2
Statement of Assets and Liabilities 20
Statement of Operations 23
Statement of Changes in Net Assets 26
Financial Highlights 32
Statement of Cash Flows 44
Notes to Financial Statements 96
<CAPTION>
Fund Schedule of
Summary Investments
<S> <C> <C>
Total Return Fund 3 45
Total Return Fund II 4 57
Total Return Fund III 5 59
Total Return Mortgage Fund 19 61
Moderate Duration Fund 6 62
Low Duration Fund 7 64
Low Duration Fund II 8 69
Low Duration Fund III 9 71
Low Duration Mortgage Fund 19 72
Short-Term Fund 10 73
Long-Term U.S. Government Fund 11 75
Real Return Bond Fund 12 76
Foreign Bond Fund 13 77
Global Bond Fund 14 81
Emerging Markets Bond Fund 19 85
High Yield Fund 15 87
Money Market Fund 16 90
StocksPLUS Fund 17 91
Strategic Balanced Fund 18 94
</TABLE>
<PAGE>
Chairman's Message
Dear PIMCO Funds Shareholder:
The PIMCO Funds continued to generate positive results for shareholders
during the six months ended September 30, 1997 in a strong bond market
environment which saw the Lehman Aggregate Bond Index rise 7.12%.
As shown on the following pages, most of the PIMCO Funds continued to
outperform their respective benchmark indexes during the reporting
period. At the same time, we are pleased that virtually all the funds
included in this report are rated in the top four-and five-star
categories by Morningstar. In addition, many of the Lipper rankings
place our funds among the leaders in their categories.
Ten years ago, we sent the first PIMCO Funds report to approximately 20
shareholders who had invested $42 million in the two institutional funds
we opened in May 1987. Today, we offer 40 fixed-income and equity funds
to shareholders who have invested $30.3 billion. Of those, 19 funds
totaling $20.7 billion are described in this report.
The largest of these, the PIMCO Total Return Fund, has been the nation's
largest bond fund since mid-1996. Starting with $12.8 million in assets
as of June 30, 1987, it has grown to more than $15 billion. Over the
decade, it ranks first among 17 peer funds in the Intermediate
Investment Grade Debt category according to Lipper Analytical Services
and carries a five-star Morningstar rating.
We introduced three new funds on July 31, providing shareholders with
additional investment choices:
. Total Return Mortgage Fund - Invests primarily in a diversified
portfolio of intermediate-maturity mortgage-related securities;
. Low Duration Mortgage Fund - Same as above with a lower average
duration, expected to lead to less volatility;
. Emerging Markets Bond Fund - Invests primarily in securities tied to
countries with emerging securities markets.
We believe the outlook for the bond market is quite favorable as
inflation continues at a low rate and many investors are attracted to
fixed-income securities. Portfolio manager William H. Gross provides
more information about our view of the future on the following page.
We thank you again for your continued investment in the PIMCO Funds and
look forward to continuing to serve your investment goals.
Sincerely,
/s/ Brent R. Harris
Brent R. Harris
Chairman of the Board
November 15, 1997
1997 Semiannual Report 1
<PAGE>
An Interview with William Gross
[PHOTO OF WILLIAM GROSS APPEARS HERE]
William Gross is a Managing Director and founder of Pacific Investment
Management Company, a PIMCO Advisors institutional investment firm. He
is also the portfolio manager of the PIMCO Total Return and Low Duration
Funds.
Q: Do you view the current economic environment as favorable for bonds?
A: Absolutely. Bonds have a number of things going for them. They
thrive in periods of low inflation, which we've had for a number of
years now. Beyond this, economic growth is projected to slow down
during the next year, which could lead to lower interest rates and
create an even more beneficial environment for bond prices.
Q: How far do you think bond yields could fall during the next year?
A: I think long-term interest rates may come down to six percent, due
to the combination of slower economic growth and low inflation.
There's also a very favorable supply-and-demand scenario, as
investors are reallocating more of their assets into bonds. In fact,
more people are beginning to look at bond funds for the first time
in several years.
Q: What is your reaction to the trend of investors reallocating assets
into bonds?
A: I am encouraged. In my book ("Everything You've Heard About
Investing Is Wrong") I explain that the factors that have driven the
stock market's returns will not be repeated in our lifetimes. And I
think the total returns offered by bonds will be quite favorable
compared to stocks, with substantially less downside risk.
Q: Do you think the Federal Reserve will raise interest rates by the
end of the year?
A: Federal Reserve Chairman Alan Greenspan fueled fears of a rate
increase during his congressional testimony in October. During his
speech he warned about potentially higher wages and prices stemming
from the low unemployment rate. Therefore, I think there's a slight
chance that the Fed may raise rates by year-end, but interest rates
will decline over the long run.
Q: If interest rates change, how will you respond in terms of your
portfolio holdings?
A: If interest rates creep up to the 6.5 percent range, we would view
that as a buying opportunity, since we believe that yields could
drop to around six percent, as I said. However, if rates continue to
fall, we would trim some of our mortgage holdings and move the
remaining allocation to lower coupon pass-throughs and adjustable
rate mortgages, as refinancing risks would increase.
Q: Are you sticking with your "Butler Creek" outlook for bond yields?
A: The interest rate environment is still behaving like tranquil Butler
Creek, which is located near my old home in Middletown, Ohio. What I
mean by this is that long-term rates should gently fluctuate within
a range of five to seven percent over the next three to five years.
Q: Assuming we continue down "Butler Creek," what is the best strategy
for investors going forward?
A: The key to a successful investment strategy in such a calm
environment is generating high income from your bond holdings. This
focus differs from high yield, which is associated with junk bonds.
A good first simple step is to lengthen the maturity on the bonds in
your portfolio, since a bond with a longer duration will yield more
than its shorter-term counterpart during periods of low inflation.
The views of Mr. Gross are not indicative of any past or future
performance of a PIMCO Fund.
2 PIMCO Funds
<PAGE>
PIMCO Total Return Fund
- --------------------------------------------------------------------------------
FUND CHARACTERISTICS
- --------------------------------------------------------------------------------
Objective:
Maximum total return, consistent with preservation of capital and prudent
investment management.
Portfolio:
Primarily intermediate-term investment grade bonds.
Duration:
4.8 years
Total Net Assets:
$15,046 million
Sector Breakdown:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Mortgage-Backed Securities 49.4%
Short-Term Instruments 19.3%
Corporate Bonds and Notes 14.8%
U.S. Government Agencies 6.9%
Other 9.6%
</TABLE>
Quality Breakdown:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
AAA 73%
AA 1%
A 5%
BBB 15%
BB 6%
</TABLE>
*% of Total Investments as of September 30, 1997
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended September 30, 1997
<TABLE>
<CAPTION>
Lipper Intermediate
Inst'l Class Admin. Class Lehman Brothers Investment Grade
(Incep. 5/11/87) (Incep. 9/7/94) Aggregate Bond Index Debt Fund Average
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
6 Months 7.77% 7.63% 7.12% 6.52%
1 Year 11.10% 10.82% 9.71% 8.87%
3 Years* 10.28% 10.05% 9.49% 8.50%
5 Years* 8.02% -- 6.92% 6.21%
10 Years* 10.47% -- 9.48% 8.64%
Since Inception* 9.85% 9.44% -- --
</TABLE>
* Annualized
CUMULATIVE RETURNS THROUGH SEPTEMBER 30, 1997
$5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Lehman Brothers
Aggregate Bond
Month Total Return Fund Index
============= ================= ===============
<S> <C> <C>
05/31/87 5,000,000.00 5,000,000.00
06/30/87 5,063,956.34 5,068,813.30
09/30/87 4,913,547.24 4,930,537.52
12/31/87 5,153,725.88 5,217,151.39
03/31/88 5,377,483.12 5,413,366.66
06/30/88 5,451,096.95 5,476,986.50
09/30/88 5,574,381.00 5,586,211.37
12/31/88 5,637,131.44 5,628,570.50
03/31/89 5,697,790.05 5,692,677.23
06/30/89 6,168,243.70 6,146,130.88
09/30/89 6,221,536.05 6,215,431.06
12/31/89 6,440,082.87 6,446,377.56
03/31/90 6,344,778.35 6,395,092.18
06/30/90 6,569,704.66 6,628,797.71
09/30/90 6,578,457.98 6,685,601.14
12/31/90 6,958,353.92 7,023,987.28
03/31/91 7,216,807.61 7,220,851.73
06/30/91 7,401,768.00 7,338,029.08
09/30/91 7,894,693.54 7,754,803.95
12/31/91 8,319,146.95 8,148,045.96
03/31/92 8,292,135.33 8,043,852.25
06/30/92 8,616,471.95 8,368,443.26
09/30/92 9,043,979.79 8,727,927.81
12/31/92 9,129,278.40 8,751,136.07
03/31/93 9,560,206.46 9,112,892.76
06/30/93 9,876,645.33 9,354,550.77
09/30/93 10,204,889.62 9,598,643.21
12/31/93 10,271,501.07 9,604,323.55
03/31/94 9,995,399.21 9,329,070.37
06/30/94 9,814,015.06 9,232,829.14
09/30/94 9,917,752.98 9,289,145.68
12/31/94 9,904,417.17 9,324,201.51
03/31/95 10,417,455.79 9,794,533.89
06/30/95 10,929,712.70 10,391,294.47
09/30/95 11,244,354.79 10,595,299.92
12/31/95 11,863,137.98 11,046,806.02
03/31/96 11,578,391.40 10,850,915.35
06/30/96 11,683,872.98 10,912,587.64
09/30/96 11,973,192.96 11,114,483.25
12/31/96 12,419,446.40 11,447,838.22
03/31/97 12,342,925.19 11,383,893.79
06/30/97 12,843,893.73 11,801,967.02
09/30/97 13,301,627.11 12,194,072.97
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 6/1/87, the first full month following
the Fund's Institutional Class inception on 5/11/87, compared to the Lehman
Brothers Aggregate Bond Index, an unmanaged market index. The performance of the
Administrative Class (shown above) reflects the payment of a service fee in an
amount not to exceed 0.25% on an annualized basis. The Administrative Class
commenced operations on 9/7/94. The Fund may invest in foreign securities which
involve potentially higher risks including foreign currency fluctuations and
political or economic uncertainty.
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
. The Fund's Institutional Class shares returned 7.77% for the semiannual
period, ending 0.65% above the 7.12% return of the Lehman Brothers Aggregate
Bond Index. This successful result was primarily due to a combination of
falling interest rates and favorable sector strategies.
. We were cautiously bullish during the second and third quarters of 1997, a
period which saw cyclical concerns partially offset positive long-term
disinflationary factors.
. A concentration in intermediate maturities was a mild positive for performance
as the intermediate portion of the yield curve flattened.
. An above-index weighting of mortgage-backed securities added to returns. These
issues outperformed Treasuries as declining volatility reduced the threat of
prepayments.
. An underweighting of the corporate sector was a drag on returns as these
issues also turned in strong performance. However, a small allocation to the
non-investment grade sector (mostly BB-rated issues) was positive for results
as a healthy economy boosted the prices of these securities.
. A small allocation to non-dollar securities had little impact on returns due
to the mixed performance of markets abroad.
1997 Semiannual Report 3
<PAGE>
PIMCO Total Return Fund II
- --------------------
FUND CHARACTERISTICS
- --------------------
Objective:
Maximum total return, consistent with preservation of capital and prudent
investment management.
Portfolio:
Primarily intermediate-term investment grade bonds with quality and foreign
issuer restrictions.
Duration:
4.8 years
Total Net Assets:
$398 million
<TABLE>
<CAPTION>
Sector Breakdown:*
[PIE CHART APPEARS HERE]
<S> <C>
Mortgage-Backed Securities 54.3%
Short-Term Instruments 30.0%
Asset-Backed Securities 7.8%
Corporate Bonds and Notes 6.9%
Other 1.0%
<CAPTION>
Quality Breakdown:*
[PIE CHART APPEARS HERE]
<S> <C>
AAA 84%
BBB 14%
BB 2%
</TABLE>
*% of Total Investments as of September 30, 1997
- -----------
PERFORMANCE
- -----------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended September 30, 1997
<TABLE>
<CAPTION>
Lipper Intermediate
Inst'l Class Admin. Class Lehman Brothers Investment Grade
(Incep. 12/30/91) (Incep. 11/30/94) Aggregate Bond Index Debt Fund Average
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
6 Months 7.27% 7.14% 7.12% 6.52%
1 Year 10.70% 10.42% 9.71% 8.87%
2 Years* 8.01% 7.69% 7.28% 6.59%
3 Years* 9.95% -- 9.49% 8.50%
5 Years* 7.59% -- 6.92% 6.21%
Since Inception* 8.15% 10.33% -- --
</TABLE>
* Annualized
<TABLE>
<CAPTION>
CUMULATIVE RETURNS THROUGH SEPTEMBER 30, 1997
$ 5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
Lehman Brothers
MONTH Total Return Fund II Aggregate Bond Index
============== ==================== ====================
<S> <C> <C>
12/31/91 5,000,000.00 5,000,000.00
03/31/92 4,937,872.54 4,936,062.15
06/30/92 5,149,979.44 5,135,245.49
09/30/92 5,437,040.85 5,355,841.05
12/31/92 5,471,600.16 5,370,082.66
03/31/93 5,719,996.80 5,592,072.50
06/30/93 5,920,354.14 5,740,364.51
09/30/93 6,093,001.53 5,890,150.38
12/31/93 6,067,801.62 5,893,636.09
03/31/94 5,910,177.59 5,724,728.61
06/30/94 5,845,103.89 5,665,670.75
09/30/94 5,896,835.44 5,700,229.06
12/31/94 5,933,421.21 5,721,740.86
03/31/95 6,223,521.86 6,010,357.53
06/30/95 6,551,568.81 6,376,556.12
09/30/95 6,717,352.56 6,501,742.85
12/31/95 7,059,284.02 6,778,806.89
03/31/96 6,882,876.95 6,658,599.74
06/30/96 6,917,298.83 6,696,444.58
09/30/96 7,079,836.65 6,820,336.62
12/31/96 7,331,445.66 7,024,897.92
03/31/97 7,305,830.65 6,985,658.80
06/30/97 7,571,276.14 7,242,206.95
09/30/97 7,837,156.08 7,482,820.44
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 1/1/92, the first full month following
the Fund's Institutional Class inception on 12/30/91, compared to the Lehman
Brothers Aggregate Bond Index, an unmanaged market index. The performance of the
Administrative Class (shown above) reflects the payment of a service fee in an
amount not to exceed 0.25% on an annualized basis. The Administrative Class
commenced operations on 11/30/94.
- ------------------
PORTFOLIO INSIGHTS
- ------------------
. The Institutional Class shares of the Fund returned 7.27% for the
semiannual period, narrowly outperforming the Lehman Brothers Aggregate
Bond Index which returned 7.12%. This successful result was primarily due
to a combination of falling interest rates and favorable sector strategies.
. We were cautiously bullish during the second and third quarters of 1997 in
response to cyclical concerns which partially offset positive long-term
disinflationary factors.
. A concentration in intermediate maturities, which benefited from flattening
in the intermediate portion of the yield curve, was a mild positive for
performance.
. An above-index weighting of mortgage-backed securities added to returns.
These issues outperformed Treasuries as declining volatility reduced the
threat of prepayments.
. An underweighting of the corporate sector was a drag on returns as these
issues also turned in strong performance.
- ---
4 PIMCO Funds
- ---
<PAGE>
PIMCO Total Return Fund III
- --------------------
FUND CHARACTERISTICS
- --------------------
Objective:
Maximum total return, consistent with preservation of capital and prudent
investment management.
Portfolio:
Primarily intermediate-term investment grade bonds with prohibitions on firms
engaged in socially sensitive practices.
Duration:
4.9 years
Total Net Assets:
$293 million
Sector Breakdown:*
[PIE CHART APPEARS HERE]
Mortgage-Backed Securities 48.6%
- -------------------------------------
Short-Term Instruments 26.4%
- -------------------------------------
Corporate Bonds and Notes 10.8%
- -------------------------------------
U.S. Government Agencies 6.2%
- -------------------------------------
Other 8.0%
- -------------------------------------
Quality Breakdown:*
[PIE CHART APPEARS HERE]
AAA 78%
- -------------------------------------
AA 2%
- -------------------------------------
A 5%
- -------------------------------------
BBB 10%
- -------------------------------------
BB 5%
- -------------------------------------
*% of Total Investments as of September 30, 1997
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended September 30, 1997
<TABLE>
<CAPTION>
Lipper Intermediate
Inst'l Class Admin. Class Lehman Brothers Investment Grade
(Incep. 5/1/91) (Incep. 4/11/97) Aggregate Bond Index Debt Fund Average
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
6 Months 7.49% -- 7.12% 6.52%
1 Year 10.72% -- 9.71% 8.87%
3 Years* 10.03% -- 9.49% 8.50%
5 Years* 8.06% -- 6.92% 6.21%
Since Inception 9.60%* 5.56% -- --
</TABLE>
* Annualized
Cumulative Returns Through September 30, 1997
$ 5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
LEHMAN BROTHERS
TOTAL RETURN AGGREGATE BOND
MONTH FUND III BOND INDEX
- -------- ------------ ---------------
<S> <C> <C>
04/30/91 5,000,000.00 5,000,000.00
06/30/91 5,011,359.52 5,026,682.08
09/30/91 5,362,298.54 5,312,180.37
12/31/91 5,687,512.05 5,581,558.23
03/31/92 5,621,305.61 5,510,183.66
06/30/92 5,844,833.24 5,732,534.35
09/30/92 6,112,922.43 5,978,787.74
12/31/92 6,200,946.89 5,994,685.82
03/31/93 6,434,448.98 6,242,495.66
06/30/93 6,644,495.93 6,408,035.75
09/30/93 6,894,098.61 6,575,243.47
12/31/93 6,984,684.66 6,579,134.61
03/31/94 6,797,242,16 6,390,581.22
06/30/94 6,681,327.69 6,324,654.24
09/30/94 6,760,588.20 6,363,232.09
12/31/94 6,745,187.69 6,387,245.96
03/31/95 7,131,605.55 6,709,432.12
06/30/95 7,468,981.79 7,118,223.86
09/30/95 7,661,663,64 7,257,971.27
12/31/95 8,042,734.75 7,567,261.08
03/31/96 7,848,991.23 7,433,072.44
06/30/96 7,938,312.39 7,475,319.07
09/30/96 8,134,266.56 7,613,621.20
12/31/96 8,415,106.52 7,841,975.36
03/31/97 8,379,283.78 7,798,172.28
06/30/97 8,714,471.27 8,084,559.97
09/30/97 9,006,608.47 8,353,159.60
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 5/1/91, the Fund's Institutional Class
inception date, compared to the Lehman Brothers Aggregate Bond Index, an
unmanaged market index. The performance of the Administrative Class (shown
above) reflects the payment of a service fee in an amount not to exceed 0.25% on
an annualized basis. The Administrative Class commenced operations on 4/11/97.
The Fund may invest in foreign securities which involve potentially higher risks
including foreign currency fluctuations and political or economic uncertainty.
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
. The Fund's Institutional Class shares returned 7.49% for the semiannual
period, 0.37% above the 7.12% return of its performance benchmark, the Lehman
Brothers Aggregate Bond Index. This successful result was primarily due to a
combination of falling interest rates and favorable sector strategies.
. We were cautiously bullish during the second and third quarters of 1997 as
heightened cyclical concerns partially offset positive long-term
disinflationary factors.
. A maturity mix that favored intermediate maturities benefited performance in
response to a mild flattening of the intermediate portion of the yield curve.
. An above-index weighting of mortgage-backed securities added to returns. These
issues outperformed Treasuries as declining volatility reduced the threat of
prepayments.
. An underweighting of the corporate sector was a drag on returns as these
issues also turned in strong performance. However, a limited allocation to the
non-investment grade sector (mostly BB-rated issues) was a positive for
results as a healthy economy boosted the prices of these securities.
. A small allocation to non-dollar securities had little impact on returns
due to the mixed performance of markets abroad.
1997 Semiannual Report 5
<PAGE>
PIMCO Moderate Duration Fund
- --------------------
FUND CHARACTERISTICS
- --------------------
Objective:
Maximum total return, consistent with preservation of capital and prudent
investment management.
Portfolio:
Primarily short- and intermediate-term investment grade bonds.
Duration:
3.5 years
Total Net Assets:
$73 million
Sector Breakdown:*
[PIE CHART APPEARS HERE]
Mortgage-Backed Securities 51.0%
- --------------------------------------
Corporate Bonds and Notes 22.9%
- --------------------------------------
Short-Term Instruments 14.8%
- --------------------------------------
U.S. Treasury Obligations 5.0%
- --------------------------------------
Other 6.3%
- --------------------------------------
Quality Breakdown:*
[PIE CHART APPEARS HERE]
AAA 65%
- --------------------------------------
AA 3%
- --------------------------------------
A 8%
- --------------------------------------
BBB 15%
- --------------------------------------
BB 7%
- --------------------------------------
B 2%
- --------------------------------------
*% of Total Investments as of September 30, 1997
- -----------
PERFORMANCE
- -----------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended September 30, 1997
<TABLE>
<CAPTION>
Lehman Brothers Lipper Short Intermediate
Inst'l Class Intermediate Government/ Investment Grade
(Incep. 12/31/96) Corporate Bond Index Debt Fund Average
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
6 Months 5.91% 5.73% 4.92%
Since Inception 5.65% -- --
</TABLE>
CUMULATIVE RETURNS THROUGH SEPTEMBER 30, 1997
$ 5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
MODERATE LEHMAN BROTHERS
DURATION INTERMEDIATE GOV'T/CORPORATE
MONTH FUND BOND INDEX
============= ============ ============================
<S> <C> <C>
12/31/96 5,000,000.00 5,000,000.00
01/31/97 5,018,573.17 5,019,499.43
02/28/97 5,025,671.35 5,029,036.84
03/31/97 4,987,552.32 4,994,336.61
04/30/97 5,045,822.33 5,053,269.64
05/31/97 5,078,972.76 5,095,211.88
06/30/97 5,141,279.51 5,141,578.32
07/31/97 5,240,625.65 5,245,952.19
08/31/97 5,220,094.11 5,219,722.44
09/30/97 5,282,528.84 5,280,271.32
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 12/31/96, the Fund's Institutional Class
inception date, compared to the Lehman Brothers Intermediate Government/
Corporate Bond Index, an unmanaged market index. The Fund may invest in foreign
securities which involve potentially higher risks including foreign currency
fluctuations and political or economic uncertainty.
- ------------------
PORTFOLIO INSIGHTS
- ------------------
. The Fund began the semiannual period with a near-index duration which
hindered returns somewhat as interest rates declined. Later in the period,
duration was increased to modestly above-index which aided results as
interest rates continued their descent. For the entire six months,
intermediate-term interest rates declined by approximately 0.5% to 0.75%.
In this positive interest rate environment, the Fund's performance of 5.91%
led its Lehman Brothers benchmark by 0.18%.
. The Fund employed a broader-than-index maturity structure with a
concentration in short-intermediate securities. This strategy had little
impact on returns as the small relative increase in price gains due to the
strategy was offset by its reduced yield.
. The advantages of being more diversified than the index remained evident as
sector selection aided results. The yield advantage and price appreciation
of the Fund's significant allocation to adjustable- and fixed-rate
mortgage-backed issues made the largest sector contribution to
outperforming its benchmark.
. Underweighting the corporate sector while overweighting lower rated
investment-grade and slightly below investment-grade corporate issues
enhanced performance. Lower rated corporates posted stronger results than
very highly rated corporates due to premium yields and price gains as yield
spreads continued to narrow.
. A small allocation to short-maturity non-U.S. markets increased performance
and portfolio diversification. Specifically, dollar-denominated Argentine
government bonds extended their contribution to results. Currency hedged
holdings of New Zealand government bonds also aided Fund returns as
investors responded positively to improving inflation and economic
fundamentals.
6 PIMCO Funds
<PAGE>
PIMCO Low Duration Fund
- --------------------
FUND CHARACTERISTICS
- --------------------
Objective:
Maximum total return, consistent with preservation of capital and prudent
investment management.
Portfolio:
Primarily shorter-term investment grade bonds.
Duration:
2.5 years
Total Net Assets:
$2,964 million
Sector Breakdown:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Mortgage-Backed Securities 54.4%
Short-Term Instruments 24.5%
Corporate Bonds and Notes 12.1%
U.S. Government Agencies 6.0%
Other 3.0%
</TABLE>
Quality Breakdown:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
AAA 75%
AA 1%
A 2%
BBB 16%
BB 5%
B 1%
</TABLE>
*% of Total Investments as of September 30, 1997
- -----------
PERFORMANCE
- -----------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended September 30, 1997
<TABLE>
<CAPTION>
Lipper Short
Inst'l Class Admin. Class Merrill Lynch 1-3 Investment Grade
(Incep. 5/11/87) (Incep. 12/31/94) Year Treasury Index Debt Fund Average
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
6 Months 5.41% 5.28% 4.21% 4.00%
1 Year 9.00% 8.72% 6.89% 6.54%
2 Years* 7.87% 7.60% 6.25% 5.88%
5 Years* 6.73% -- 5.36% 5.23%
10 Years* 8.58% -- 7.48% 7.17%
Since Inception* 8.35% 8.59% -- --
</TABLE>
* Annualized
CUMULATIVE RETURNS THROUGH SEPTEMBER 30, 1997
$ 5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Merrill Lynch 1-3
Year Treasury
MONTH Low Duration Fund Index
============= ================= =================
<S> <C> <C>
05/31/87 5,000,000.00 5,000,000.00
06/30/87 5,046,628.48 5,054,485.75
09/30/87 5,052,060.34 5,063,694.37
12/31/87 5,222,390.45 5,239,923.80
03/31/88 5,380,985.81 5,378,053.17
06/30/88 5,466,197.62 5,433,787.83
09/30/88 5,568,286.26 5,512,752.20
12/31/88 5,652,042.78 5,565,872.47
03/31/89 5,730,286.34 5,635,161.96
06/30/89 6,046,639.03 5,915,300.64
09/30/89 6,137,963.43 6,001,275.55
12/31/89 6,307,553.55 6,173,858.16
03/31/90 6,381,163.67 6,228,693.61
06/30/90 6,554,775.06 6,403,041.34
09/30/90 6,676,367.70 6,555,691.36
12/31/90 6,878,681.99 6,774,100.62
03/31/91 7,057,271.42 6,923,107.15
06/30/91 7,245,424.79 7,059,426.43
09/30/91 7,527,775.31 7,296,717.53
12/31/91 7,804,629.42 7,565,276.33
03/31/92 7,854,904.81 7,577,109.32
06/30/92 8,065,551.62 7,794,942.42
09/30/92 8,309,644.16 8,027,322.80
12/31/92 8,404,634.31 8,041,993.33
03/31/93 8,633,490.85 8,219,526.61
06/30/93 8,771,815.15 8,308,112.58
09/30/93 8,922,962.07 8,427,301.82
12/31/93 9,056,846.09 8,477,096.67
03/31/94 9,027,600.01 8,434,788.62
06/30/94 9,007,245.73 8,441,777.51
09/30/94 9,116,482.30 8,524,951.54
12/31/94 9,113,801.39 8,525,249.62
03/31/95 9,352,866.19 8,811,584.55
06/30/95 9,692,390.65 9,094,069.51
09/30/95 9,890,345.07 9,230,696.86
12/31/95 10,201,089.33 9,463,013.97
03/31/96 10,206,317.43 9,494,623.03
06/30/96 10,324,796.28 9,590,447.68
09/30/96 10,559,003.22 9,748,887.64
12/31/96 10,827,171.97 9,934,177.48
03/31/97 10,918,161.31 9,999,821.82
06/30/97 11,232,679.19 10,220,212.68
09/30/97 11,508,993.65 10,420,534.40
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 6/1/87, the first full month following
the Fund's Institutional Class inception on 5/11/87, compared to the Merrill
Lynch 1-3 Year Treasury Index, an unmanaged market index. The performance of the
Administrative Class (shown above) reflects the payment of a service fee in an
amount not to exceed 0.25% on an annualized basis. The Administrative Class
commenced operations on 12/31/94. The Fund may invest in foreign securities
which involve potentially higher risks including foreign currency fluctuations
and political or economic uncertainty.
- ------------------
PORTFOLIO INSIGHTS
- ------------------
. The Fund's above-index duration aided results during the six-month period as
interest rates declined from 0.2% to 0.7% on intermediate-maturity issues. In
this positive interest rate environment, the Fund's Institutional Class shares
returned 5.41% to lead its Merrill 1-3 Year Treasury benchmark by 1.20%.
. The Fund employed a modified barbell maturity structure, characterized by
concentrations of securities both longer and shorter in maturity than the
index. This strategy accomplished the goal of increasing price gains in the
declining interest rate environment.
. The advantages of being more diversified than the index remained evident as
sector selection aided results. The yield advantage and price appreciation of
the Fund's significant allocation to adjustable- and fixed-rate mortgage-
backed issues made the largest sector contribution to outperforming the all-
Treasury Merrill Index.
. Corporate exposure was concentrated in BBB-rated bonds and limited holdings of
slightly below investment-grade issues, which enhanced performance during the
period through premium yields and price gains in response to narrowing yield
spreads.
. Modest allocations to short-maturity non-U.S. markets increased performance
and portfolio diversification. Dollar-denominated holdings of Latin American
issuers extended their contribution to results. Currency hedged Canadian bonds
also aided returns as investors responded positively to declining government
deficits and improving economic fundamentals.
1997 Semiannual Report 7
<PAGE>
PIMCO Low Duration Fund II
- --------------------
FUND CHARACTERISTICS
- --------------------
Objective:
Maximum total return, consistent with preservation of capital and prudent
investment management.
Portfolio:
Primarily shorter-term investment grade bonds with quality and foreign issuer
restrictions.
Duration:
2.5 years
Total Net Assets:
$327 million
Sector Breakdown:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Mortgage-Backed Securities 62.3%
Short-Term Instruments 19.9%
U.S. Government Agencies 8.8%
Other 9.0%
</TABLE>
Quality Breakdown:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
AAA 95%
AA 1%
A 4%
</TABLE>
*% of Total Investments as of September 30, 1997
- -----------
PERFORMANCE
- -----------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended September 30, 1997
<TABLE>
<CAPTION>
Lipper Short
Inst'l Class Merrill Lynch 1-3 Investment Grade
(Incep. 11/1/91) Year Treasury Index Debt Fund Average
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
6 Months 4.72% 4.21% 4.00%
1 Year 8.01% 6.89% 6.54%
3 Years* 7.69% 6.92% 6.44%
5 Years* 5.99% 5.36% 5.23%
Since Inception* 6.50% -- --
</TABLE>
* Annualized
Cumulative Returns Through September 30, 1997
$ 5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Merrill Lynch 1-3
Low Duration Year Treasury
MONTH Fund II Index
========== ============ =================
<S> <C> <C>
10/31/91 5,000,000.00 5,000,000.00
12/31/91 5,150,788.16 5,128,941.26
03/31/92 5,157,326.03 5,136,963.54
06/30/92 5,302,475.76 5,284,645.27
09/30/92 5,426,036.14 5,442,189.47
12/31/92 5,471,783.06 5,452,135.47
03/31/93 5,619,040.49 5,572,495.62
06/30/93 5,710,513.66 5,632,553.20
09/30/93 5,794,689.46 5,713,358.53
12/31/93 5,831,720.27 5,747,117.35
03/31/94 5,796,319.85 5,718,434.26
06/30/94 5,772,325.63 5,723,172.44
09/30/94 5,810,813.12 5,779,560.96
12/31/94 5,850,353.97 5,779,763.04
03/31/95 6,074,369.85 5,973,886.16
06/30/95 6,235,805.38 6,165,399.16
09/30/95 6,346,020.45 6,258,026.79
12/31/95 6,539,804.23 6,415,528.09
03/31/96 6,518,000.20 6,436,957.71
06/30/96 6,575,781.95 6,501,922.82
09/30/96 6,719,144.92 6,609,338.49
12/31/96 6,881,010.53 6,734,957.27
03/31/97 6,930,530.16 6,779,461.39
06/30/97 7,099,424.28 6,928,877.18
09/30/97 7,257,639.95 7,064,686.93
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 11/1/91, the Fund's Institutional Class
inception date, compared to the Merrill Lynch 1-3 Year Treasury Index, an
unmanaged market index.
- ------------------
PORTFOLIO INSIGHTS
- ------------------
. The Fund's above-index duration aided results in the first half of the
1998 fiscal year as interest rates declined approximately 0.2% to 0.7%
over the short-to-intermediate maturity range where the Fund primarily
invests. In this positive interest rate environment, the Fund's
performance of 4.72% led its Merrill Lynch 1-3 Year Treasury benchmark
by 0.51%.
. The Fund employed a modified barbell maturity structure, characterized
by concentrations of securities with maturities both longer and shorter
than the index. This strategy accomplished the goal of increasing price
gains relative to alternative maturity structures in the declining
interest rate environment.
. The advantages of being more diversified than the index remained
evident as sector selection aided results. The yield advantage and
price appreciation of the Fund's considerable allocation to
adjustable-and fixed-rate mortgage-backed issues made a significant
contribution to outperforming the all-Treasury Merrill Lynch Index.
. A small allocation to investment-grade corporate issues enhanced
performance during the period through premium yields relative to
Treasuries and price gains as yield spreads continued to narrow.
8 PIMCO Funds
<PAGE>
PIMCO Low Duration Fund III
- --------------------
FUND CHARACTERISTICS
- --------------------
Objective:
Maximum total return, consistent with preservation of capital and prudent
investment management.
Portfolio:
Primarily shorter-term investment grade bonds with prohibitions on firms engaged
in socially sensitive practices.
Duration:
2.3 years
Total Net Assets:
$12 million
Sector Breakdown:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Mortgage-Backed Securities 64.8%
Short-Term Instruments 32.4%
Corporate Bonds and Notes 2.8%
</TABLE>
Quality Breakdown:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
AAA 87%
A 4%
BBB 9%
</TABLE>
*% of Total Investments as of September 30, 1997
- -----------
PERFORMANCE
- -----------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended September 30, 1997
<TABLE>
<CAPTION>
Lipper Short
Inst'l Class Merrill Lynch 1-3 Investment Grade
(Incep. 12/31/96) Year Treasury Index Debt Fund Average
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
6 Months 4.61% 4.21% 4.00%
Since Inception 5.22% -- --
</TABLE>
[LINE CHART APPEARS HERE]
CUMULATIVE RETURNS THROUGH SEPTEMBER 30, 1997
$ 5,000,000 invested at inception
<TABLE>
<CAPTION>
Merrill
Lynch
Low 1-3 Year
Duration Treaury
Month Fund III Index
-------- ------------ ------------
<S> <C> <C>
12/31/96 5,000,000.00 5,000,000.00
01/31/97 5,019,543.89 5,023,449.84
02/28/97 5,044,723.95 5,035,003.37
03/31/97 5,028,885.20 5,033,039.64
04/30/97 5,074,774.05 5,074,159.63
05/31/97 5,116,879.06 5,108,765.73
06/30/97 5,156,799.63 5,143,965.21
07/31/97 5,193,006.83 5,200,497.44
08/31/97 5,219,919.73 5,205,281.45
09/30/97 5,260,770.54 5,244,789.73
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 12/31/96, the Fund's Institutional Class
inception date, compared to the Merrill Lynch 1-3 Year Treasury Index, an
unmanaged market index. The Fund may invest in foreign securities which involve
potentially higher risks including foreign currency fluctuations and political
or economic uncertainty.
- ------------------
PORTFOLIO INSIGHTS
- ------------------
. The Fund featured an above-index duration which aided results during the six-
month reporting period, as interest rates declined approximately 0.2% to 0.7%
over the short-to-intermediate maturity range where the Fund primarily
invests. In this positive interest rate environment, the Fund's performance of
4.61% led its Merrill Lynch 1-3 Year Treasury benchmark by 0.40%.
. The Fund employed a modified barbell maturity structure, characterized by
concentrations of longer and shorter maturity holdings than the index. This
strategy accomplished the goal of increasing price gains relative to
alternative maturity structures in the declining interest rate environment.
. The advantages of being more diversified than the index remained evident as
sector selection aided results. The yield advantage and price appreciation of
the Fund's significant allocation to adjustable-and fixed-rate mortgage-backed
issues made the largest sector contribution to outperforming the all-Treasury
Merrill Lynch Index.
. The Fund's limited exposure to corporate issues also enhanced performance
during the period through premium yields relative to Treasuries and price
gains as yield spreads continued to narrow.
1997 Semiannual Report 9
<PAGE>
PIMCO Short-Term Fund
- --------------------
FUND CHARACTERISTICS
- --------------------
Objective:
Maximum current income, consistent with preservation of capital and daily
liquidity.
Portfolio:
Primarily short-term investment grade bonds.
Duration:
0.8 years
Total Net Assets:
$189 million
Sector Breakdown:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Corporate Bonds and Notes 44.2%
Mortgage-Backed Securities 22.7%
Short-Term Instruments 17.6%
Asset-Backed Securities 9.1%
Other 6.4%
</TABLE>
Quality Breakdown:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
AAA 46%
AA 4%
A 12%
BBB 29%
BB 8%
B 1%
</TABLE>
*% of Total Investments as of September 30, 1997
- -----------
PERFORMANCE
- -----------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended September 30, 1997
<TABLE>
<CAPTION>
Lipper Ultra-
Inst'l Class Admin. Class Lipper Money Short Obligation
(Incep.10/7/87) (Incep. 2/1/96) Market Index Fund Average
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
6 Months 3.91% 3.79% 2.32% 3.12%
1 Year 7.42% 7.16% 4.64% 5.74%
3 Years* 7.40% -- 4.98% 5.90%
5 Years* 5.87% -- 4.18% 4.76%
Since Inception* 6.63% 6.69% -- --
</TABLE>
* Annualized
CUMULATIVE RETURNS THROUGH SEPTEMBER 30, 1997
$ 5,000,000 invested at inception
[LINE CHART APPEARS HERE]
<TABLE>
<CAPTION>
Lipper Money
Date Short-Term Fund Market Index
- ---- --------------- ------------
<S> <C> <C>
10/31/87 5,000,000.00 5,000,000.00
12/31/87 5,060,118.71 5,057,166.46
03/31/88 5,144,560.09 5,138,509.22
06/30/88 5,232,290.67 5,219,609.26
09/30/88 5,328,408.56 5,316,238.28
12/31/88 5,443,779.03 5,421,119.61
03/31/89 5,571,028.92 5,539,059.94
06/30/89 5,708,265.54 5,667,437.01
09/30/89 5,828,327.55 5,789,008.54
12/31/89 5,957,698.00 5,907,324.85
03/31/90 6,064,841.95 6,022,071.81
06/30/90 6,189,317.66 6,140,264.38
09/30/90 6,309,631.66 6,258,290.37
12/31/90 6,462,141.45 6,377,953.51
03/31/91 6,576,473.50 6,483,125.14
06/30/91 6,682,103.70 6,567,275.25
09/30/91 6,804,471.34 6,666,779.30
12/31/91 6,892,227.52 6,750,463.54
03/31/92 6,948,633.77 6,818,190.47
06/30/92 7,031,099.48 6,879,740.08
09/30/92 7,100,505.24 6,934,231.92
12/31/92 7,142,088.53 6,984,278.75
03/31/93 7,222,352.16 7,031,879.39
06/30/93 7,309,491.37 7,077,685.85
09/30/93 7,378,550.59 7,125,210.35
12/31/93 7,472,267.73 7,173,058.47
03/31/94 7,486,771.83 7,221,944.08
06/30/94 7,544,130.72 7,281,328.29
09/30/94 7,623,522.50 7,353,647.76
12/31/94 7,688,575.65 7,440,763.32
03/31/95 7,820,738.96 7,540,914.09
06/30/95 8,016,387.87 7,646,218.98
09/30/95 8,183,875.26 7,749,905.77
12/31/95 8,396,279.25 7,840,933.32
03/31/96 8,484,975.46 7,937,771.75
06/30/96 8,622,971.03 8,031,807.05
09/30/96 8,792,582.47 8,131,815.05
12/31/96 8,984,288.34 8,228,149.01
03/31/97 9,089,081.02 8,315,673.85
06/30/97 9,273,987.03 8,408,319.50
09/30/97 9,444,784.13 8,508,774.85
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 11/1/87, the first full month following
the Fund's Institutional Class inception on 10/7/87, compared to the Lipper
Money Market Index, an index consisting of the 30 largest equal weighted Money
Market Funds. Whereas money market funds attempt to maintain a stable share
price, the Short-Term Fund's share price will fluctuate in response to market
conditions. The performance of the Administrative Class (shown above) reflects
the payment of a service fee in an amount not to exceed 0.25% on an annualized
basis. The Administrative Class commenced operations on 2/1/96. The Fund may
invest in foreign securities which involve potentially higher risks including
foreign currency fluctuations and political or economic uncertainty.
- ------------------
PORTFOLIO INSIGHTS
- ------------------
. The Fund's Institutional Class shares posted strong returns, beating the
Fund's performance benchmark, the Lipper Money Market Index, by 1.59% for the
first half of the fiscal year in a generally declining interest rate
environment.
. An above-index duration benefited returns due to the higher yields available
on longer maturity issues in a positively sloped yield curve environment.
Price appreciation also added to performance in response to a decline in
interest rates that pushed the yield on one- and two-year Treasuries lower by
an average of 0.54%.
. Holdings of mortgage-backed securities boosted Fund performance due to their
higher yields relative to like-duration Treasuries.
. Short-maturity, BBB and below investment grade corporate securities
outperformed their investment grade counterparts due to a further tightening
of credit spreads.
. Currency-hedged, non-U.S. dollar positions, mostly in the dollar-bloc
countries of Canada and New Zealand, augmented the Fund's performance due to
those countries' declining interest rate environments. Modest holdings of
dollar-denominated Latin American securities, specifically Argentine and
Mexican issues, offered higher yields and price appreciation as a result of
stable economic growth and low inflation.
10 PIMCO Funds
<PAGE>
PIMCO Long-Term U.S. Government Fund
- --------------------
FUND CHARACTERISTICS
- --------------------
Objective:
Maximum total return, consistent with preservation of capital and prudent
investment management.
Portfolio:
Primarily longer-term U.S. government bonds.
Duration:
10.0 years
Total Net Assets:
$44 million
Sector Breakdown:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Mortgage-Backed Securities 52.3%
U.S. Treasury Obligations 46.0%
Short-Term Instruments 1.7%
</TABLE>
Quality Breakdown:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
AAA 97%
AA 3%
</TABLE>
*% of Total Investments as of September 30, 1997
- -----------
PERFORMANCE
- -----------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended September 30, 1997
<TABLE>
<CAPTION>
LB Int. & Lehman Brothers Lipper General
Inst'l Class Admin. Class 20 + Year Aggregate U.S. Government
(Incep.7/1/91) (Incep.9/23/97) Treasury Index Bond Index Fund Average
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
6 Months 11.40% -- 11.28% 7.12% 6.81%
1 Year 14.55% -- 12.74% 9.71% 8.71%
3 Years* 13.30% -- 12.24% 9.49% 8.21%
5 Years* 9.78% -- 8.63% 6.92% 5.71%
Since Inception 12.47%* (0.18)% -- -- --
</TABLE>
* Annualized
Cumulative Returns Through September 30, 1997
$ 5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Long-Term LB Int. & 20+ Lehman Brothers
U.S. Gov't Year Treasury Aggregate Bond
Month Fund Index Index
----- ---------- ------------- ---------------
<S> <C> <C> <C>
06/30/91 5,000,000.00 5,000,000.00 5,000,000.00
09/30/91 5,442,626.52 5,415,685.30 5,283,982.84
12/31/91 5,909,198.61 5,774,938.92 5,551,930.82
03/31/92 5,753,678.29 5,562,934.30 5,480,935.11
06/30/92 6,016,162.43 5,781,880.42 5,702,105.54
09/30/92 6,540,766.62 6,149,823.72 5,947,051.80
12/31/92 6,614,191.30 6,221,352.60 5,962,865.48
03/31/93 7,101,318.26 6,608,591.66 6,209,359.93
06/30/93 7,540,953.55 6,950,670.74 6,374,021.32
09/30/93 7,968,888.07 7,351,540.44 6,540,341.49
12/31/93 7,842,784.30 7,252,702.72 6,544,211.97
03/31/94 7,394,708.81 6,825,284.90 6,356,659.44
06/30/94 7,204,477.90 6,629,251.58 6,291,082.41
09/30/94 7,169,096.87 6,580,309.99 6,329,455.48
12/31/94 7,263,265.65 6,705,670.23 6,353,341.89
03/31/95 7,801,463.08 7,134,689.94 6,673,817.84
06/30/95 8,641,206.09 7,879,507.59 7,080,439.69
09/30/95 8,871,163.10 8,063,753.53 7,219,445.30
12/31/95 9,556,575.14 8,682,058.90 7,527,093.38
03/31/96 8,958,506.47 8,135,410.42 7,393,617.02
06/30/96 8,947,395.15 8,133,815.85 7,435,639.40
09/30/96 9,102.967.69 8,252,684.44 7,573,207.41
12/31/96 9,624,384.52 8,631,621.49 7,800,349.45
03/31/97 9,359,769.86 8,360,698.25 7,756,778.87
06/30/97 9,875,451.11 8,816,262.42 8,041,646.39
09/30/97 10,427,123.54 9,303,827.70 8,308,820.28
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 7/1/91, the Fund's Institutional Class
inception date, compared to the Lehman Brothers Aggregate Bond Index, and a 10
year duration blend of the Lehman Brothers Intermediate and 20+Yr. Treasury
Indices, each an unmanaged market index. The performance of the Administrative
Class (shown above) reflects the payment of a service fee in an amount not to
exceed 0.25% on an annual basis. The Administrative Class commenced operations
on 9/23/97.
- ------------------
Portfolio insights
- ------------------
. Interest rates fell sharply during the semiannual period as expectations for
the pace of future inflation declined. As the inflation risk premium
declined, the yield curve flattened; intermediate and longer-term Treasury
yields fell by 0.7% to 0.8% while shorter rates declined a lesser amount,
between 0.2% and 0.6%.
. The Fund delivered strong absolute performance for the period, returning
11.40%. This return narrowly outpaced the Fund's 10-year duration performance
benchmark which returned 11.28% for the same period.
. A near-index duration had little impact on relative returns. A barbell
maturity mix of intermediate and long-term holdings was a slight positive for
performance due to the flattening of the yield curve.
. A significant allocation to mortgage-backed securities over the period
contributed to performance as these instruments outperformed Treasuries due
to higher initial yields and tightening spreads.
1997 Semiannual Report 11
<PAGE>
PIMCO Real Return Bond Fund
- --------------------
FUND CHARACTERISTICS
- --------------------
Objective:
Maximum real return, consistent with preservation of real capital and prudent
investment management.
Portfolio:
Primarily inflation-indexed bonds.
Duration:
2.1 years
Total Net Assets:
$8 million
Sector Breakdown:*
[PIE CHART APPEARS HERE]
U.S. Treasury Obligations 86.1%
- ---------------------------------------------
Corporate Bonds and Notes 5.8%
- ---------------------------------------------
Other 8.1%
- ---------------------------------------------
Quality Breakdown:*
[PIE CHART APPEARS HERE]
AAA 96%
- ---------------------------------------------
AA 3%
- ---------------------------------------------
A 1%
- ---------------------------------------------
*% of Total Investments as of September 30, 1997
- -----------
PERFORMANCE
- -----------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended September 30, 1997
Inst'l Class Lehman Brothers Inflation
(Incep. 1/29/97) Linked Treasury Index
- --------------------------------------------------------------------------------
6 Months 2.66% 2.30%
Since Inception 2.76% --
CUMULATIVE RETURNS THROUGH SEPTEMBER 30, 1997
$ 5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Lehman Brothers Inflation
Month Real Return Bond Fund Linked Treasury Index
============== ========================== ==========================
<S> <C> <C>
01/31/97 5,000,000.00 5,000,000.00
02/28/97 5,017,061.42 5,016,498.75
03/31/97 4,971,983.14 4,947,775.56
04/30/97 5,002,809.26 4,977,955.11
05/31/97 5,032,748.09 5,004,837.91
06/30/97 5,021,937.74 4,988,822.94
07/31/97 5,083,741.54 5,036,214.46
08/31/97 5,094,468.92 5,051,321.70
09/30/97 5,104,456.87 5,061,426.43
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 2/1/97, the first full month following
the Fund's Institutional Class inception date on 1/29/97, compared to the Lehman
Brothers Inflation Linked Treasury Index, an unmanaged market index. The Fund
may invest in foreign securities which involve potentially higher risks
including foreign currency fluctuations and political or economic uncertainty.
- ------------------
PORTFOLIO INSIGHTS
- ------------------
. The Fund returned 2.66% for the semiannual period, outperforming its
benchmark, the Lehman Brothers Inflation Linked Treasury Index, which
returned a lesser 2.30%.
. The Fund's moderately above-index duration was positive for relative
performance as nominal bond yields declined.
. Inflation-protection Treasuries were range-bound however, with real yields
beginning and ending the period relatively unchanged. The 10-year
inflation-protected bond has outperformed the 5-year since its July
issuance, resulting in an inverted real yield curve.
. Allocations to inflation-linked securities of non-U.S. issuers,
specifically the governments of Canada and Australia, were positive for
performance as real yields of those countries declined, outperforming the
U.S. market.
. The Fund benefited from holdings of short-maturity corporate securities,
both conventional and inflation-protected, due to sustained corporate
profits and stable yield spreads.
12 PIMCO Funds
<PAGE>
PIMCO Foreign Bond Fund
- --------------------
Fund Characteristics
- --------------------
Objective:
Maximum total return, consistent with preservation of capital and prudent
investment management (non-U.S.).
Portfolio:
Primarily investment grade foreign bonds.
Duration:
4.9 years
Total Net Assets:
$332 million
Country Allocation:*
[PIE CHART APPEARS HERE]
United States 14.1%
- ---------------------------
Japan 9.8%
- ---------------------------
Italy 9.8%
- ---------------------------
Canada 7.9%
- ---------------------------
Finland 6.8%
- ---------------------------
Germany 6.6%
- ---------------------------
Australia 5.6%
- ---------------------------
United Kingdom 5.3%
- ---------------------------
Sweden 5.3%
- ---------------------------
Short-Term
Instruments/Other 28.8%
- ---------------------------
Quality Breakdown:*
[PIE CHART APPEARS HERE]
AAA 79%
- ---------------------------
AA 2%
- ---------------------------
A 5%
- ---------------------------
BBB 8%
- ---------------------------
BB 6%
- ---------------------------
*% of Total Investments as of September 30, 1997
- -----------
PERFORMANCE
- -----------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended September 30, 1997
<TABLE>
<CAPTION>
Lipper
Inst'l Class Admin. Class J.P. Morgan Non- International Income
(Incep. 12/3/92) (Incep. 1/28/97) U.S. Index (Hedged) Fund Average
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
6 Months 6.88% 6.73% 6.96% 4.05%
1 Year 13.75% -- 12.56% 4.03%
3 Years* 16.29% -- 13.45% 9.05%
Since Inception 11.65%* 5.96% -- --
* Annualized
</TABLE>
CUMULATIVE RETURNS THROUGH SEPTEMBER 30, 1997
$ 5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
J.P. Morgan
Non-U.S.
Month Foreign Bond Fund Index (Hedged)
======== ================= ==============
<S> <C> <C>
12/31/92 5,000,000.00 5,000,000.00
03/31/93 5,171,806.79 5,139,908.08
06/30/93 5,342,019.45 5,274,660.69
09/30/93 5,580,127.04 5,468,089.71
12/31/93 5,820,067.19 5,695,098.00
03/31/94 5,574,497.53 5,488,717.61
06/30/94 5,340,992.26 5,334,282.88
09/30/94 5,330,821.16 5,322,727.80
12/31/94 5,395,131.92 5,406,367.14
03/31/95 5,471,621.11 5,646,728.49
06/30/95 5,790,385.79 5,907,209.68
09/30/95 6,099,109.96 6,129,011.76
12/31/95 6,540,017.24 6,392,287.42
03/31/96 6,664,336.30 6,446,357.33
06/30/96 6,930,027.40 6,622,589.48
09/30/96 7,370,201.61 6,905,010.25
12/31/96 7,775,387.86 7,169,345.05
03/31/97 7,843,570.24 7,266,702.51
06/30/97 8,118,878.22 7,508,893.80
09/30/97 8,383,474.67 7,772,622.96
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 1/1/93, the first full month following
the Fund's Institutional Class inception on 12/3/92, compared to the J.P. Morgan
Non-U.S. Government Bond Index (Hedged), an unmanaged market index. The
performance of the Administrative Class (shown above) reflects the payment of a
service fee in an amount not to exceed 0.25% on an annualized basis. The
Administrative Class commenced operations on 1/28/97. Foreign investing involves
potentially higher risks including foreign currency fluctuations and political
or economic uncertainty.
- ------------------
PORTFOLIO INSIGHTS
- ------------------
. The last two quarters saw solid Fund performance on an absolute basis, with
Institutional Class shares returning 6.88%. Relative performance was slightly
below that of the Fund's currency-hedged benchmark which returned 6.96% for
the same period.
. Country selection benefited performance due to overweighted positions in the
dollar-bloc nations of Australia and Canada, two of the world's top performing
markets. This was somewhat mitigated by underweighting Japan which also had
superior returns.
. Within Europe, the Fund benefited from an emphasis on conservative EMU
convergence strategies. This led to an overweight in Finland versus lower
yielding European countries such as France, Netherlands and Belgium. Small
tactical exposure to Italy was also taken as it became more probable that
Italy would be a first round EMU participant. Positions in Sweden also aided
performance as the market overestimated the likely amount of future central
bank tightening, creating opportunities in two- and three-year maturities.
. Small exposures to developing country debt aided performance as Argentine,
Mexican and Polish securities posted 10-20% returns over the six-month period.
. The Fund's limited currency strategy was negative for performance versus the
index. In Europe, the Fund underweighted the Swiss franc versus the German
mark and Spanish peseta. Flows from the EMU-zone countries caused the Swiss
currency to appreciate despite its low yield. Small emerging currency
positions also detracted from performance due to devaluations in Asia and the
Czech Republic.
1997 Semiannual Report 13
<PAGE>
PIMCO Global Bond Fund
- --------------------
FUND CHARACTERISTICS
- --------------------
Objective:
Maximum total return, consistent with preservation of capital and prudent
investment management (U.S. and non-U.S.).
Portfolio:
Primarily investment grade U.S. and foreign bonds.
Duration:
5.4 years
Total Net Assets:
$270 million
[PIE CHART APPEARS HERE]
Country Allocation:*
<TABLE>
<S> <C>
United States 29.8%
Finland 9.4%
Canada 8.8%
Sweden 7.5%
United Kingdom 7.0%
Australia 5.5%
Short-Term Instruments/Other 32.0%
</TABLE>
[PIE CHART APPEARS HERE]
Quality Breakdown:*
<TABLE>
<S> <C>
AAA 70%
A 12%
BBB 13%
BB 5%
</TABLE>
*% of Total Investments as of September 30, 1997
- -----------
PERFORMANCE
- -----------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended September 30, 1997
<TABLE>
<CAPTION>
Lipper
Inst'l Class Admin. Class J.P. Morgan Global Income
(Incep. 11/23/93) (Incep. 8/1/96) Global Index Fund Average
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
6 Months 4.85% 4.70% 4.72% 5.72%
1 Year 4.72% 4.45% 3.36% 7.65%
3 Years* 10.97% -- 7.98% 9.90%
Since Inception* 8.82% 6.66% -- --
</TABLE>
* Annualized
[LINE CHART APPEARS HERE]
Cumulative Returns Through September 30, 1997
$ 5,000,000 invested at inception
<TABLE>
<CAPTION>
Date Global Bond Fund J.P. Morgan Global Index
- ---- ---------------- ------------------------
<S> <C> <C>
11/30/93 5,000,000.00 5,000,000.00
12/31/93 5,159,354.04 5,051,000.98
03/31/94 4,981,799.26 5,019,201.26
06/30/94 4,993,231.71 5,032,746.39
09/30/94 5,045,769.26 5,091,673.36
12/31/94 5,071,554.24 5,114,665.69
03/31/95 5,497,439.30 5,625,054.13
06/30/95 5,791,402.39 5,910,344.05
09/30/95 5,839,678.19 5,902,936.01
12/31/95 6,236,009.23 6,102,287.05
03/31/96 6,159,100.03 5,995,399.36
06/30/96 6,265,488.12 6,031,207.77
09/30/96 6,584,758.53 6,201,903.80
12/31/96 6,879,967.26 6,370,238.58
03/31/97 6,576,928.89 6,121,248.92
06/30/97 6,783,140.48 6,301,651.14
09/30/97 6,895,854.27 6,410,014.34
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 12/1/93, the first full month following
the Fund's Institutional Class inception on 11/23/93, compared to the J.P.
Morgan Global Index, an unmanaged market index. The performance of the
Administrative Class (shown above) reflects the payment of a service fee in an
amount not to exceed 0.25% on an annualized basis. The Administrative Class
commenced operations on 8/1/96. Foreign investing involves potentially higher
risks including foreign currency fluctuations and political or economic
uncertainty.
- ------------------
PORTFOLIO INSIGHTS
- ------------------
. The last two quarters saw attractive Fund performance on an absolute basis,
producing returns on Institutional Class shares of 4.85% over this period.
Relative performance was slightly above the Fund's benchmark J.P. Morgan
Global Index returns of 4.72% but lagged many U.S. dollar-hedged portfolios.
. Country selection benefited performance due to overweighted positions in the
dollar-bloc countries of Australia and Canada, two of the world's top
performing markets. This was somewhat mitigated by an underweighted exposure
to Japan which also had superior returns.
. Small exposures to developing country debt aided performance as both
Argentina and Mexico posted above 20% returns over the past year.
. The Fund's limited currency strategy was negative for performance versus the
index. In Europe, the Fund underweighted the Swiss franc versus the German
mark and Spanish peseta. Flows from the EMU-zone countries caused the Swiss
currency to appreciate despite its low yield. Small emerging currency
positions also detracted from performance due to devaluations in Asia and the
Czech Republic.
. Overall, U.S. dollar strength caused unhedged portfolios, like the Fund, to
lag hedged foreign investments on an absolute basis.
14 PIMCO Funds
<PAGE>
PIMCO High Yield Fund
- --------------------
FUND CHARACTERISTICS
- --------------------
Objective:
Maximum total return, consistent with preservation of capital and prudent
investment management.
Portfolio:
Primarily high yield bonds.
Duration:
4.3 years
Total Net Assets:
$1,497 million
Sector Breakdown:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Corporate Bonds and Notes 82.2%
Short-Term Instruments 6.0%
Preferred Stock 5.7%
Other 6.1%
</TABLE>
Quality Breakdown:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
AAA 6%
BBB 4%
BB 50%
B 40%
</TABLE>
*% of Total Investments as of September 30, 1997
- -----------
PERFORMANCE
- -----------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended September 30, 1997
<TABLE>
<CAPTION>
Lehman Brothers Lipper High
Inst'l Class Admin. Class BB Intermediate Current Yield
(Incep. 12/16/92) (Incep. 1/16/95) Corp. Index Fund Average
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
6 Months 9.40% 9.27% 8.06% 10.99%
1 Year 15.44% 15.16% 13.09% 15.61%
2 Years* 13.66% 13.38% 11.23% 14.17%
3 Years* 14.61% -- 12.48% 13.25%
Since Inception* 13.29% 15.49% -- --
</TABLE>
* Annualized
CUMULATIVE RETURNS THROUGH SEPTEMBER 30, 1997
$ 5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Lehman Brothers
BB Intermediate
MONTH High Yield Fund Corp. Index
============= =============== ===============
<S> <C> <C>
12/31/92 5,000,000.00 5,000,000.00
03/31/93 5,313,333.34 5,239,091.78
06/30/93 5,556,253.99 5,435,025.95
09/30/93 5,686,689.07 5,594,144.12
12/31/93 5,935,129.08 5,732,726.39
03/31/94 5,879,245.93 5,643,896.01
06/30/94 5,878,586.94 5,632,494.33
09/30/94 6,025,466.63 5,772,014.62
12/31/94 6,077,393.93 5,781,574.92
03/31/95 6,397,464.08 6,110,147.76
06/30/95 6,781,901.87 6,472,038.80
09/30/95 7,022,542.80 6,639,757.78
12/31/95 7,334,202.07 6,883,602.46
03/31/96 7,402,000.12 6,933,691.24
06/30/96 7,490,201.26 7,015,578.88
09/30/96 7,858,765.33 7,263,474.59
12/31/96 8,191,024.54 7,529,727.93
03/31/97 8,292,841.34 7,601,685.35
06/30/97 8,699,809.32 7,928,522.50
09/30/97 9,072,090.94 8,214,195.36
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 1/1/93, the first full month following
the Fund's Institutional Class inception on 12/16/92, compared to the Lehman
Brothers BB Intermediate Corporate Index, an unmanaged market index. The
performance of the Administrative Class (shown above) reflects the payment of a
service fee in an amount not to exceed 0.25% on an annualized basis. The
Administrative Class commenced operations on 1/16/95. The investments made by
the High Yield Fund may involve high risk and may have speculative
characteristics.
- ------------------
PORTFOLIO INSIGHTS
- ------------------
. The High Yield Fund's Institutional Class shares strongly outperformed the
Lehman Brothers BB Intermediate Corporate Bond Index, returning 9.40% for the
six-month period compared to 8.06% for the benchmark.
. While the Fund's quality and subordination stratification has remained
defensive in 1997, careful security selection has enabled the Fund to provide
good relative performance.
. Holdings of securities of Energy and Media Companies and underweighted
positions in Gaming and Supermarkets boosted relative returns. Numerous tender
offers and premium calls also aided performance as companies took advantage of
low interest rates and a favorable financing environment to restructure their
balance sheets.
. The Fund's three largest holdings - Beaver Valley Funding Corp. (2.5% of the
portfolio, rated Ba3/BB-), Fresenius Medical Care (2.0%, Ba3/B+) and Time
Warner, Inc. (2.6%, Ba3/BB+) - all contributed to performance.
. Small positions in U.S. dollar-denominated Argentine and Mexican Brady bonds
also contributed to performance.
. The Fund's small position in floating rate, senior-secured syndicated bank
loans detracted from performance as these more-defensive securities will
underperform in periods of very strong high yield bond returns.
1997 Semiannual Report 15
<PAGE>
PIMCO Money Market Fund
- --------------------
FUND CHARACTERISTICS
- --------------------
Objective:
Maximum current income, consistent with
preservation of capital and daily liquidity.
Portfolio:
Primarily money market instruments.
Weighted Average Maturity:
40 days
Total Net Assets:
$145 million
Sector Breakdown:*
[PIE CHART APPEARS HERE]
Commercial Paper 98.0%
- ---------------------------------
Corporate Bonds and Notes 2.0%
- ---------------------------------
*% of Total Investments as of September 30, 1997
- -----------
PERFORMANCE
- -----------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended September 30, 1997
<TABLE>
<CAPTION>
Inst'l Class Admin. Class Lipper Money
(Incep. 3/1/91) (Incep. 1/24/95) Market Index
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
6 Months 2.66% 2.48% 2.32%
1 Year 5.24% 4.93% 4.64%
2 Years* 5.50% 5.21% 4.78%
3 Years* 5.52% -- 4.98%
5 Years* 4.55% -- 4.18%
Since Inception* 4.58% 5.29% --
* Annualized
</TABLE>
Cumulative Returns Through September 30, 1997
$ 5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Lipper Money
MONTH Money Market Fund Market Index
===== ================= ============
<S> <C> <C>
02/28/91 5,000,000.00 5,000,000.00
03/31/91 5,025,170.00 5,026,003.41
06/30/91 5,098,544.48 5,098,217.47
09/30/91 5,168,070.60 5,168,380.18
12/31/91 5,235,295.51 5,233,255.88
03/31/92 5,286,315.66 5,285,760.77
06/30/92 5,333,833.24 5,333,476.73
09/30/92 5,375,416.31 5,375,721.20
12/31/92 5,415,416.59 5,414,519.70
03/31/93 5,452,504.32 5,451,421.81
06/30/93 5,489,090.19 5,486,932.99
09/30/93 5,527,713.80 5,523,776.07
12/31/93 5,567,081.25 5,560,870.04
03/31/94 5,606,275.87 5,598,768.31
06/30/94 5,654,813.75 5,644,805.55
09/30/94 5,714,049.50 5,700,870.79
12/31/94 5,785,415.42 5,768,406.60
03/31/95 5,867,022.99 5,846,047.87
06/30/95 5,950,959.87 5,927,684.85
09/30/95 6,032,542.27 6,008,067.40
12/31/95 6,136,175.15 6,078,635.96
03/31/96 6,217,237.30 6,153,709.36
06/30/96 6,297,219.80 6,226,609.66
09/30/96 6,379,779.59 6,304,140.25
12/31/96 6,460,353,31 6,378,822.57
03/31/97 6,539,910.52 6,446,675.67
06/30/97 6,626,256.14 6,518,498.65
09/30/97 6,714,110.30 6,596,376.05
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 3/1/91, the Fund's Institutional Class
inception date, compared to the Lipper Money Market Index, an index consisting
of the 30 largest equal weighted Money Market Funds. The performance of the
Administrative Class (shown above) reflects the payment of a service fee in an
amount not to exceed 0.25% on an annualized basis. The Administrative Class
commenced operations on 1/24/95. An investment in the Fund is neither insured
nor guaranteed by the U.S. Government and there can be no assurance that the
Fund will be able to maintain a stable net asset value of $1.00 per share.
- ------------------
PORTFOLIO INSIGHTS
- ------------------
. During the first six months of the fiscal year, the Fund's
Institutional Class shares returned 2.66% outperforming the Lipper
Money Market Index by 0.34%.
. The Fund's favorable six-month performance was achieved through
significant investments in top quality domestic and Yankee commercial
paper.
. Select holdings of short-maturity, investment-grade corporates also
added to returns as these securities offer higher yields with minimal
price risk relative to similar maturity Treasuries.
. The Fund's yield enhancing strategies boosted its thirty-day SEC yield
during the period from 5.18% at the end of March, to 5.41% at the end
of September.
16 PIMCO Funds
<PAGE>
PIMCO StocksPLUS Fund
- --------------------
FUND CHARACTERISTICS
- --------------------
Objective:
Total return which exceeds that of
the S&P 500 Index.
Portfolio:
Primarily S&P 500 Index futures and
short-term bonds.
Duration:
0.6 years
Total Net Assets:
$510 million
Sector Breakdown:*
[PIE CHART APPEARS HERE]
Short-Term Instruments 35.7%
- ------------------------------------
Corporate Bonds and Notes 28.9%
- ------------------------------------
Mortgage-Backed Securities 14.7%
- ------------------------------------
Asset-Backed Securities 10.1%
- ------------------------------------
Other 10.6%
- ------------------------------------
Note, breakdown does not reflect the Fund's equity exposure achieved through the
use of S&P 500 derivative positions.
Quality Breakdown:*
[PIE CHART APPEARS HERE]
AAA 58%
- ------------------------------------
A 8%
- ------------------------------------
BBB 25%
- ------------------------------------
BB 9%
- ------------------------------------
*% of Total Investments as of September 30, 1997
- -----------
PERFORMANCE
- -----------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended September 30, 1997
<TABLE>
<CAPTION>
Lipper
Inst'l Class Admin. Class S&P Growth & Income
(Incep. 5/14/93) (Incep. 1/7/97) 500 Index Fund Average
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
6 Months 26.68% 26.38% 26.26% 24.68%
1 Year 40.40% -- 40.45% 35.76%
3 Years* 30.70% -- 29.92% 25.46%
Since Inception 23.32%* 26.80% -- --
* Annualized
</TABLE>
CUMULATIVE RETURNS THROUGH SEPTEMBER 30, 1997
$ 5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
MONTH StocksPLUS Fund S&P 500 Index
================ =================== ===================
<S> <C> <C>
05/31/93 5,000,000.00 5,000,000.00
06/30/93 5,027,261.21 5,014,649.98
09/30/93 5,157,774.20 5,144,221.06
12/31/93 5,306,421.11 5,263,491.95
03/31/94 5,077,284.04 5,063,891.79
06/30/94 5,126,078.23 5,085,204.36
09/30/94 5,473,356.54 5,333,861.37
12/31/94 5,461,225.21 5,333,021.73
03/31/95 6,023,776.17 5,852,274.13
06/30/95 6,643,179.01 6,410,973.53
09/30/95 7,193,848.16 6,920,402.55
12/31/95 7,673,723.11 7,337,059.16
03/31/96 8,076,117.06 7,730,880.59
06/30/96 8,445,186.92 8,077,811.87
09/30/96 8,704,241.74 8,327,467.15
12/31/96 9,444,045.60 9,021,642.13
03/31/97 9,646,436.55 9,263,514.55
06/30/97 11,344,245.14 10,880,732.84
09/30/97 12,220,453.72 11,695,788.64
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 6/1/93, the first full month following
the Fund's Institutional Class inception on 5/14/93, compared to the Standard
and Poor's 500 Index, an unmanaged market index. The performance of the
Administrative Class (shown above) reflects the payment of a service fee in an
amount not to exceed 0.25% on an annualized basis. The Administrative Class
commenced operations on 1/7/97. The Fund may invest in foreign securities which
involve potentially higher risks including foreign currency fluctuations and
political or economic uncertainty.
- ------------------
PORTFOLIO INSIGHTS
- ------------------
. A Healthy economy, stable corporate profits and benign inflation provided the
foundation for declining interest rates and strong stock market performance
during the first half of the Fund's fiscal year. The S&P 500 Index finished up
26.26% while one-year interest rates fell by 0.56%.
. Investments in S&P Index futures and swap contracts captured the impressive
stock market gains. For the period, the Fund's Institutional Class shares
returned 26.68%, outperforming the S&P 500 Index by 0.42% due to successful
interest rate and sector strategies.
. An above-neutral duration on the cash portfolio used to back the Fund's
S&P 500 Index exposure was a positive for performance.
. Both fixed-rate and adjustable-rate mortgages added to returns as
volatility declined during the period. Corporates, particularly
BBB-rated issues, boosted performance. A small allocation to BB-rated
corporates also performed well through a combination of higher initial
yields and spread tightening.
. U.S. Treasury inflation protected securities (TIPS) also helped performance as
real yields declined slightly. Currency-hedged inflation protected securities
were mixed with Canadian positions adding to performance and New Zealand
positions subtracting from returns. A modest allocation to dollar-denominated
Latin American bonds was a plus as those markets again topped U.S. bonds.
1997 Semiannual Report 17
<PAGE>
PIMCO Strategic Balanced Fund
- --------------------
FUND CHARACTERISTICS
- --------------------
Objective:
Maximum total return, consistent with preservation of capital and prudent
investment management.
Portfolio:
Primarily a combination of short- and intermediate-term investment grade bonds,
and S&P 500 Index futures.
Duration:
2.3 years
Total Net Assets:
$42 million
Sector Breakdown:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Short-Term Instruments 38.3%
Corporate Bonds and Notes 32.4%
Mortgage-Backed Securities 17.2%
Asset-Backed Securities 10.6%
Other 1.5%
</TABLE>
Note, breakdown does not reflect the Fund's equity exposure achieved through the
use of S&P 500 derivative positions.
Quality Breakdown:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
AAA 62%
A 10%
BBB 23%
BB 5%
</TABLE>
*% of Total Investments as of September 30, 1997
- -----------
PERFORMANCE
- -----------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended September 30, 1997
<TABLE>
<CAPTION>
60% S&P 500 Index and Lipper Lipper
Inst'l Class 40% Lehman Brothers Balanced Balanced
(Incep. 6/28/96) Aggregate Bond Index Index Fund Average
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
6 Months 19.09% 18.39% 17.77% 17.60%
1 Year 28.68% 27.53% 24.86% 24.03%
Since Inception* 25.72% -- -- --
</TABLE>
* Annualized
[LINE CHART APPEARS HERE]
Cumulative Returns Through September 30, 1997
$ 5,000,000 invested at inception
<TABLE>
<CAPTION>
60% S&P 500
Index and 40%
Lehman Brothers
Strategic Balance Aggregate Bond Lipper Balanced
Date Fund Index Index
- ---- ----------------- --------------- ---------------
<S> <C> <C> <C>
06/30/96 5,000,000.00 5,000,000.00 5,000,000.00
09/30/96 5,175,000.00 5,132,224.39 5,131,195.88
12/31/96 5,511,545.44 5,450,953.27 5,416,758.49
03/31/97 5,591,599.64 5,528,616.82 5,440,114.68
06/30/97 6,275,397.83 6,181,438.54 6,020,301.34
09/30/97 6,659,150.09 6,545,208.16 6,406,984.23
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 7/1/96, the first full month following
the Fund's Institutional Class inception on 6/28/96, compared to a static 60/40
blend of the Standard and Poor's 500 Index and the Lehman Brothers Aggregate
Bond Index, and the Lipper Balanced Index, each an unmanaged market index. The
Fund may invest in foreign securities which involve potentially higher risks
including foreign currency fluctuations and political or economic uncertainty.
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
. Over the last six months through 9/30/97, the Fund continued to post strong
returns. The Fund gained 19.09% versus 17.77% for the Lipper Balanced Fund
Index and 18.39% for a 60%/40% blend of the S&P 500 and Lehman Aggregate Bond
Indexes.
. A healthy economy, stable corporate profits and benign inflation provided the
foundation for declining interest rates and strong stock market performance
during the first half of the fiscal year. The S&P 500 Index finished up over
26% while Treasury bond yields fell between 0.6% and 0.8%.
. The Fund's asset allocation strategy favored equities over fixed-income as
PIMCO's economic outlook continued to forecast healthy GDP growth. This
contributed to returns as stocks significantly outperformed bonds.
. The Fund's equity allocation outperformed the S&P 500 Index due to successful
interest rate and sector strategies. Both fixed-rate and adjustable-rate
mortgages added to returns as volatility declined during the period.
Corporates, particularly BBB- and BB-rated issues also performed well through
a combination of higher initial yields and spread tightening.
. The Fixed-income portion of the Fund also outperformed its index, the Lehman
Brothers Aggregate Bond Index. An above-index duration added to relative
returns as interest rates fell. Corporate securities also aided performance
through their higher yields and strong relative performance.
18 PIMCO Funds
<PAGE>
PIMCO Total Return Mortgage Fund
- -----------
PERFORMANCE
- -----------
TOTAL RETURN INVESTMENT PERFORMANCE
For the Period Ended September 30, 1997
<TABLE>
<CAPTION>
Inst'l Class (Incep. 7/31/97)
- --------------------------------------------------------------------------------
<S> <C>
Since Inception 1.69%
</TABLE>
- --------------------
FUND CHARACTERISTICS
- --------------------
Objective:
Maximum total return, consistent with preservation of capital and prudent
investment management.
Portfolio:
Primarily intermediate-term mortgage-related securities.
Duration: Total Net Assets:
3.8 years $3 million
- ------------------
PORTFOLIO INSIGHTS
- ------------------
. The Fund returned 1.69% in the two-month period from its inception on 7/31/97
through 9/30/97, beating its benchmark, the Lehman Brothers Mortgage Index,
by 0.66%.
. Returns were favorable in the mortgage sector overall amid continued investor
expectations for interest rates to remain within a fairly narrow range.
(Large swings in interest rates lead to less stable cash flows for mortgage-
backed securities, reducing their value to investors.)
. The Fund benefited from positive issue selection relative to its benchmark
index.
. Holdings primarily consisted of current coupon pass-throughs (fixed-rate
mortgage-backed securities with coupons near current market levels) and CMOs
(collateralized mortgage obligations) which offer cash flows more tailored to
investors' needs.
PIMCO Low Duration Mortgage Fund
- -----------
PERFORMANCE
- -----------
TOTAL RETURN INVESTMENT PERFORMANCE
For the Period Ended September 30, 1997
<TABLE>
<CAPTION>
Inst'l Class (Incep. 7/31/97)
- --------------------------------------------------------------------------------
<S> <C>
Since Inception 2.23%
</TABLE>
- --------------------
FUND CHARACTERISTICS
- --------------------
Objective:
Maximum total return, consistent with preservation of capital and prudent
investment management.
Portfolio:
Primarily short- and intermediate-term
mortgage-related securities.
Duration: Total Net Assets:
1.9 years $3 million
- ------------------
PORTFOLIO INSIGHTS
- ------------------
. The Fund returned 2.23% in its first two months of operations from its
inception on 7/31/97 through 9/30/97, soundly beating its benchmark, the
Merrill Lynch 1-3 Year Treasury Index, by 1.38%.
. Returns were favorable in the mortgage sector as a whole amid continued
investor expectations for interest rates to remain within a fairly narrow
range. (Large swings in interest rates lead to less stable cash flows for
mortgage-backed securities, reducing their value to investors.)
. The Fund additionally benefited from positive issue selection within the
mortgage sector.
. Holdings primarily consisted of ARMs (adjustable-rate mortgage-backed
securities), whose performance reflected the strong returns of the mortgage
sector overall.
. Holdings also included current coupon pass-throughs (fixed-rate mortgage-
backed securities with coupons near current market levels) which contributed
to the Fund's outperformance.
PIMCO Emerging Markets Bond Fund
- -----------
PERFORMANCE
- -----------
TOTAL RETURN INVESTMENT PERFORMANCE
For the Period Ended September 30, 1997
<TABLE>
<CAPTION>
Inst'l Class (Incep. 7/31/97)
- --------------------------------------------------------------------------------
<S> <C>
Since Inception 1.56%
</TABLE>
- --------------------
FUND CHARACTERISTICS
- --------------------
Objective:
Maximum total return, consistent with preservation of capital and prudent
investment management.
Portfolio:
Primarily emerging market bonds.
Duration: Total Net Assets:
2.3 years $4 million
- ------------------
PORTFOLIO INSIGHTS
- ------------------
. On July 31, 1997, PIMCO launched the Emerging Markets Bond Fund, a dedicated
portfolio of developing country debt, benchmarked against the J.P. Morgan
Emerging Markets Plus Index. In its first two months, the Fund experienced
strong absolute performance, but underperformed its benchmark index by 0.78%.
. Country selection focused on higher yielding markets such as Bulgaria and
Ecuador, and credits which we deemed undervalued like Poland and the
Philippines. In general, country selection added value, but results were hurt
by a large underweight in Russia, one of the best performing markets over
this period.
. The Fund also invested a small portion of its assets in a diversified
portfolio of short-term local currency instruments. Over our longer
investment horizon, we expect this to add 200-300 basis points above U.S.
cash rates. However, in the short-term, these allocations detracted from
relative performance given the Fund's small exposures to Asian local currency
debt.
. Interest rate strategies were positive for Fund performance as a longer-than-
index duration added to absolute and relative returns in an environment where
yields fell around the globe. In addition, relative value strategies such as
forward buying of bonds and the associated cash management added value versus
traditional bond purchases.
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.
1997 Semiannual Report 19
<PAGE>
Statement of Assets and Liabilities
September 30, 1997 (Unaudited)
$ in thousands, except per share amounts
<TABLE>
<CAPTION>
Total Total Total Total Return Moderate
Return Fund Return Fund II Return Fund III Mortgage Fund Duration Fund
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Assets:
Investments, at value $ 16,681,706 $ 514,242 $ 335,673 $ 3,598 $ 73,304
- ---------------------------------------------------- ------------- ------------- ------------- ------------- -------------
Cash and foreign currency 30,106 236 261 1 81
- ---------------------------------------------------- ------------- ------------- ------------- ------------- -------------
Receivable for investments and foreign currency sold 722,867 14,739 25,205 3,250 999
- ---------------------------------------------------- ------------- ------------- ------------- ------------- -------------
Receivable for Fund shares sold 23,241 2,400 47 0 0
- ---------------------------------------------------- ------------- ------------- ------------- ------------- -------------
Variation margin receivable 0 0 0 0 0
- ---------------------------------------------------- ------------- ------------- ------------- ------------- -------------
Interest and dividends receivable 120,661 3,029 2,131 20 481
- ---------------------------------------------------- ------------- ------------- ------------- ------------- -------------
Other assets 0 0 0 0 0
- ---------------------------------------------------- ------------- ------------- ------------- ------------- -------------
17,578,581 534,646 363,317 6,869 74,865
- ---------------------------------------------------- ------------- ------------- ------------- ------------- -------------
Liabilities:
Payable for investments and foreign currency
purchased $ 2,453,009 $ 98,803 $ 69,586 $ 3,496 $ 1,985
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
Written options outstanding 356 0 0 0 0
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
Payable for Fund shares redeemed 47,947 37,170 119 0 0
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
Dividends payable 14,275 312 133 0 0
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
Accrued investment advisor's fee 3,058 81 60 1 15
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
Accrued administrator's fee 2,323 81 60 1 12
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
Accrued distribution fee 316 1 0 0 0
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
Accrued servicing fee 137 0 0 0 0
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
Variation margin payable 11,299 206 226 0 9
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
Other liabilities 186 0 0 0 0
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
2,532,906 136,654 70,184 3,498 2,021
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
Net Assets $ 15,045,675 $ 397,992 $ 293,133 $ 3,371 $ 72,844
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
Net Assets Consist of:
Paid in capital $ 14,591,210 $ 387,161 $ 287,532 $ 3,351 $ 71,856
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
Undistributed (overdistributed) net investment income (25,420) (1,500) (871) (2) 2
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
Accumulated undistributed net realized gain (loss) 215,245 4,116 2,133 2 283
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
Net unrealized appreciation (depreciation) 264,640 8,215 4,339 20 703
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
$ 15,045,675 $ 397,992 $ 293,133 $ 3,371 $ 72,844
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
Shares Issued and Outstanding
Institutional Class 1,316,864 37,971 30,702 335 7,216
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
Administrative Class 21,261 882 13 0 0
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
Retail Classes 64,431 0 0 0 0
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
Net Asset Value and Redemption Price* Per Share
(Net Assets Per Share Outstanding)
Institutional Class $ 10.73 $ 10.24 $ 9.54 $ 10.06 $ 10.10
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
Administrative Class 10.73 10.24 9.54 0 0
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
Class A 10.73 0 0 0 0
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
Class B 10.73 0 0 0 0
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
Class C 10.73 0 0 0 0
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
Cost of Investments Owned 16,490,409 506,814 332,399 3,580 72,705
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
Cost of Foreign Currency Held 10,514 0 0 0 0
- ---------------------------------------------------- ------------- ------------- ------------- ------------- ------------
</TABLE>
* With respect to the Retail Classes, the redemption price may vary by the
length of time shares are held.
20 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Low Low Low Low Duration
Duration Fund Duration Fund II Duration Fund III Mortgage Fund
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Assets:
Investments, at value $ 3,885,646 $ 461,017 $ 17,945 $ 6,214
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Cash and foreign currency 1,534 62 0 252
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Receivable for investments and foreign currency sold 30,115 676 3,139 3,502
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Receivable for Fund shares sold 5,675 0 0 0
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Variation margin receivable 0 0 0 0
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Interest and dividends receivable 23,140 2,109 61 21
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Other assets 0 0 0 0
- ------------------------------------------------------ ------------- ------------- ------------- -------------
3,946,110 463,864 21,145 9,989
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Liabilities:
Payable for investments and foreign currency purchase $ 947,007 $ 123,523 $ 8,818 $ 4,960
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Written options outstanding 0 0 0 0
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Payable for Fund shares redeemed 31,424 13,274 0 0
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Dividends payable 2,567 166 0 1,651
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Accrued investment advisor's fee 616 68 3 1
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Accrued administrator's fee 468 68 3 1
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Accrued distribution fee 36 0 0 0
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Accrued servicing fee 28 0 0 0
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Variation margin payable 23 25 0 0
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Other liabilities 95 0 0 2
- ------------------------------------------------------ ------------- ------------- ------------- -------------
982,264 137,124 8,824 6,615
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Net Assets $ 2,963,846 $ 326,740 $ 12,321 $ 3,374
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Net Assets Consist of:
Paid in capital $ 2,932,050 $ 325,558 $ 12,246 $ 3,331
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Undistributed (overdistributed) net investment income (6,991) (1,265) (5) 0
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Accumulated undistributed net realized gain (loss) 6,785 47 38 (4)
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Net unrealized appreciation (depreciation) 32,002 2,400 42 47
- ------------------------------------------------------ ------------- ------------- ------------- -------------
$ 2,963,846 $ 326,740 $ 12,321 $ 3,374
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Shares Issued and Outstanding
Institutional Class 274,314 32,741 1,225 333
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Administrative Class 2,576 0 0 0
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Retail Classes 13,758 0 0 0
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Net Asset Value and Redemption Price* Per Share
(Net Assets Per Share Outstanding)
Institutional Class $ 10.20 $ 9.98 $ 10.06 $ 10.13
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Administrative Class 10.20 0 0 0
- ------------------------------------------------------ ------------ ------------- ------------- -------------
Class A 10.20 0 0 0
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Class B 10.20 0 0 0
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Class C 10.20 0 0 0
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Cost of Investments Owned 3,856,645 458,987 17,905 6,167
- ------------------------------------------------------ ------------- ------------- ------------- -------------
Cost of Foreign Currency Held 0 0 0 0
- ------------------------------------------------------ ------------- ------------- ------------- -------------
</TABLE>
<TABLE>
<CAPTION>
Long-Term Real Return Foreign Global
Short-Term Fund U.S. Gov't Fund Bond Fund Bond Fund Bond Fund
--------------- --------------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Assets:
Investments, at value $ 189,941 $ 52,447 $ 13,707 $ 593,136 $ 376,181
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Cash and foreign currency 324 0 0 1,219 710
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Receivable for investments and foreign currency sold 117 24,350 3,915 55,540 66,809
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Receivable for Fund shares sold 272 1,827 2 1,138 852
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Variation margin receivable 0 0 0 28 0
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Interest and dividends receivable 1,780 498 65 6,403 5,545
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Other assets 0 0 8 1 0
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
192,434 79,122 17,697 657,465 450,097
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Liabilities:
Payable for investments and foreign currency purchase $ 0 $ 19,842 $ 9,533 $ 324,502 $ 178,821
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Written options outstanding 0 0 0 20 20
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Payable for Fund shares redeemed 3,021 14,773 0 555 472
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Dividends payable 171 92 1 376 317
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Accrued investment advisor's fee 39 10 2 66 55
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Accrued administrator's fee 33 11 2 69 66
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Accrued distribution fee 2 2 0 9 0
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Accrued servicing fee 2 1 0 4 0
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Variation margin payable 1 0 0 15 150
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Other liabilities 0 0 0 0 0
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
3,269 34,731 9,538 325,616 179,901
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Net Assets $ 189,165 $ 44,391 $ 8,159 $ 331,849 $ 270,196
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Net Assets Consist of:
Paid in capital $ 187,657 $ 43,929 $ 8,190 $ 309,493 $ 269,971
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Undistributed (overdistributed) net investment income (193) 443 20 12,312 5,557
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Accumulated undistributed net realized gain (loss) 652 (664) (20) (836) (4,449)
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Net unrealized appreciation (depreciation) 1,049 683 (31) 10,880 (883)
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
$ 189,165 $ 44,391 $ 8,159 $ 331,849 $ 270,196
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Shares Issued and Outstanding
Institutional Class 17,126 3,436 610 28,685 26,704
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Administrative Class 464 328 0 22 57
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Retail Classes 1,179 613 210 1,752 0
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Net Asset Value and Redemption Price* Per Share
(Net Assets Per Share Outstanding)
Institutional Class $ 10.08 $ 10.14 $ 9.95 $ 10.89 $ 10.10
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Administrative Class 10.08 10.14 0 10.89 10.10
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Class A 10.08 10.14 9.95 10.89 0
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Class B 10.08 10.14 9.95 10.89 0
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Class C 10.08 10.14 9.95 10.89 0
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Cost of Investments Owned 189,082 51,589 13,774 588,881 371,842
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
Cost of Foreign Currency Held 0 0 0 1,075 691
- ---------------------------------------------------- --------------- --------------- ----------- ------------ ------------
</TABLE>
1997 Semiannual Report See accompanying notes 21
<PAGE>
Statement of Assets and Liabilities (Cont.)
September 30, 1997 (Unaudited)
$ in thousands, except per share amounts
<TABLE>
<CAPTION>
Emerging
Markets Money StocksPLUS Strategic
Bond Fund High Yield Fund Market Fund Fund Balanced Fund
------------ --------------- ----------- ------------ -------------
<S> <C> <C> <C> <C> <C>
Assets:
Investments, at value $ 6,359 $ 1,484,708 $ 100,267 $ 540,574 $ 41,281
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Cash and foreign currency 6 1,283 175 68 18
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Receivable for investments and foreign currency sold 3 4,687 0 564 21
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Receivable for Fund shares sold 10 901 47,729 1,269 0
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Variation margin receivable 0 0 0 0 0
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Interest and dividends receivable 56 27,337 36 10,996 439
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Other assets 0 0 0 1 0
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
6,434 1,518,916 148,207 553,472 41,759
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Liabilities:
Payable for investments and foreign currency purchased $ 2,691 $ 18,123 $ 0 $ 8,219 $ 0
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Written options outstanding 6 0 0 0 0
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Payable for Fund shares redeemed 0 507 2,455 31,741 0
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Dividends payable 0 2,055 372 19 0
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Accrued investment advisor's fee 1 299 15 176 14
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Accrued administrator's fee 1 345 31 125 9
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Accrued distribution fee 0 209 2 46 0
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Accrued servicing fee 0 77 8 25 0
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Variation margin payable 0 0 0 2,975 170
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Other liabilities 0 129 64 0 0
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
2,699 21,744 2,947 43,326 193
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Net Assets $ 3,735 $ 1,497,172 $ 145,260 $ 510,146 $ 41,566
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Net Assets Consist of:
Paid in capital $ 3,717 $ 1,500,639 $ 145,260 $ 431,852 $ 39,092
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Undistributed (overdistributed) net investment income 0 1,010 0 26,302 1,079
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Accumulated undistributed net realized gain (loss) (9) (71,729) 0 41,170 438
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Net unrealized appreciation (depreciation) 27 67,252 0 10,822 957
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
$ 3,735 $ 1,497,172 $ 145,260 $ 510,146 $ 41,566
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Shares Issued and Outstanding
Institutional Class 344 93,017 37,641 26,653 3,452
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Administrative Class 0 2,028 645 80 0
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Retail Classes 28 33,801 106,976 9,241 0
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Net Asset Value and Redemption Price* Per Share
(Net Assets Per Share Outstanding)
Institutional Class $ 10.04 $ 11.62 $ 1.00 $ 14.19 $ 12.04
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Administrative Class 0 11.62 1.00 14.17 0
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Class A 10.04 11.62 1.00 14.17 0
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Class B 10.04 11.62 1.00 14.14 0
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Class C 10.04 11.62 1.00 14.15 0
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Cost of Investments Owned 6,326 1,417,566 100,267 538,009 41,088
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
Cost of Foreign Currency Held 4 0 0 0 0
- ---------------------------------------------------- ------------ --------------- ----------- ------------ -------------
</TABLE>
* With respect to the Retail Classes, the redemption price may vary by the
length of time shares are held.
22 PIMCO Funds See accompanying notes
<PAGE>
Statement of Operations
For the period ended September 30, 1997 (Unaudited)
$ in thousands
<TABLE>
<CAPTION>
Total Total Total Total Return Moderate
Return Fund Return Fund II Return Fund III Mortgage Fund Duration Fund
------------ --------------- --------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Interest $ 476,771 $ 14,991 $ 7,682 $ 36 $ 1,492
- ---------------------------------------------------- ------------ --------------- --------------- ------------- -------------
Dividends 561 0 0 0 117
- ---------------------------------------------------- ------------ --------------- --------------- ------------- -------------
Total Income 477,332 14,991 7,682 36 1,609
- ---------------------------------------------------- ------------ --------------- --------------- ------------- -------------
Expenses:
Investment advisory fees 17,946 550 290 1 61
- ---------------------------------------------------- ------------ --------------- --------------- ------------- -------------
Administration fees 13,578 550 290 1 48
- ---------------------------------------------------- ------------ --------------- --------------- ------------- -------------
Distribution fees-Administrative Class 229 8 0 0 0
- ---------------------------------------------------- ------------ --------------- --------------- ------------- -------------
Distribution and servicing fees-Retail Classes 2,331 0 0 0 0
- ---------------------------------------------------- ------------ --------------- --------------- ------------- -------------
Trustees' fees 109 4 2 0 0
- ---------------------------------------------------- ------------ --------------- --------------- ------------- -------------
Reorganization costs 0 0 0 0 0
- ---------------------------------------------------- ------------ --------------- --------------- ------------- -------------
Miscellaneous 124 12 0 0 0
- ---------------------------------------------------- ------------ --------------- --------------- ------------- -------------
Total expenses 34,317 1,124 582 2 109
- ---------------------------------------------------- ------------ --------------- --------------- ------------- -------------
Net Investment Income 443,015 13,867 7,100 34 1,500
- ---------------------------------------------------- ------------ --------------- --------------- ------------- -------------
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investments 51,657 3,903 685 2 (10)
- ---------------------------------------------------- ------------ --------------- --------------- ------------- -------------
Net realized gain on futures contracts and written
options 203,941 4,994 3,779 0 269
- ---------------------------------------------------- ------------ --------------- --------------- ------------- -------------
Net realized gain on foreign currency transactions 22,817 0 50 0 37
- ---------------------------------------------------- ------------ --------------- --------------- ------------- -------------
Net change in unrealized appreciation
(depreciation) on investments 235,342 9,158 3,422 20 765
- ---------------------------------------------------- ------------ --------------- --------------- ------------- -------------
Net change in unrealized appreciation
(depreciation) on futures contracts and written
options 106,430 268 1,316 0 106
- ---------------------------------------------------- ------------ --------------- --------------- ------------- -------------
Net change in unrealized appreciation
(depreciation) on translation of assets and
liabilities denominated in foreign currencies (6,124) 0 (24) 0 (4)
- ---------------------------------------------------- ------------ --------------- --------------- ------------- -------------
Net gain 614,063 18,323 9,228 22 1,163
- ---------------------------------------------------- ------------ --------------- --------------- ------------- -------------
Net Increase in Assets Resulting from Operations $ 1,057,078 $ 32,190 $ 16,328 $ 56 $ 2,663
- ---------------------------------------------------- ------------ --------------- --------------- ------------- -------------
</TABLE>
1997 Semiannual Report See accompanying notes 23
<PAGE>
Statement of Operations (Cont.)
For the period ended September 30, 1997 (Unaudited)
$ in thousands
<TABLE>
<CAPTION>
Low Low Low Low Duration
Duration Fund Duration Fund II Duration Fund III Mortgage Fund Short-Term Fund
----------------- ----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Interest $ 97,276 $ 10,944 $ 375 $ 32 $ 6,185
- ------------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Dividends 0 0 0 0 0
- ------------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Total Income 97,276 10,944 375 32 6,185
===================================== ================= ================= ================= ================= =================
Expenses:
Investment advisory fees 3,668 420 14 1 235
- ------------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Administration fees 2,783 420 14 1 195
- ------------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Distribution fees-Administrative
Class 33 0 0 0 4
- ------------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Distribution and servicing
fees-Retail Classes 334 0 0 0 17
- ------------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Trustees' fees 23 3 0 0 1
- ------------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Reorganization costs 0 0 0 0 0
- ------------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Miscellaneous 36 2 0 0 0
- ------------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Total expenses 6,877 845 28 2 452
- ------------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Net Investment Income 90,399 10,099 347 30 5,733
===================================== ================= ================= ================= ================= =================
Net Realized and Unrealized
Gain (Loss):
Net realized gain (loss) on
investments 12,352 667 66 (3) 47
- ------------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Net realized gain (loss) on
futures contracts and written
options 3,576 566 0 0 11
- ------------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Net realized gain (loss) on foreign
currency transactions 263 0 0 0 389
- ------------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Net change in unrealized appreciation
(depreciation) on investments 48,872 3,956 103 47 1,052
- ------------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Net change in unrealized appreciation
(depreciation) on futures contracts
and written options (2,504) 546 0 0 26
- ------------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities denominated
in foreign currencies (484) 0 0 0 (135)
- ------------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Net gain 62,075 5,735 169 44 1,390
- ------------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Net Increase in Assets Resulting
from Operations $ 152,474 $ 15,834 $ 516 $ 74 $ 7,123
===================================== ================= ================= ================= ================= =================
</TABLE>
24 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Emerging
Long-Term Real Return Foreign Global Markets
U.S. Gov't Fund Bond Fund Bond Fund Bond Fund Bond Fund
---------------- ---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Interest $ 1,186 $ 204 $ 6,754 $ 6,465 $ 45
- ------------------------------------- ---------------- ---------------- ---------------- ---------------- ----------------
Dividends 0 0 0 0 0
- ------------------------------------- ---------------- ---------------- ---------------- ---------------- ----------------
Total Income 1,186 204 6,754 6,465 45
===================================== ================ ================ ================ ================ ================
Expenses:
Investment advisory fees 44 10 344 306 3
- ------------------------------------- ---------------- ---------------- ---------------- ---------------- ----------------
Administration fees 47 11 355 367 2
- ------------------------------------- ---------------- ---------------- ---------------- ---------------- ----------------
Distribution fees-Administrative
Class 0 0 0 6 0
- ------------------------------------- ---------------- ---------------- ---------------- ---------------- ----------------
Distribution and servicing fees-
Retail Classes 12 7 45 0 0
- ------------------------------------- ---------------- ---------------- ---------------- ---------------- ----------------
Trustees' fees 0 0 2 2 0
- ------------------------------------- ---------------- ---------------- ---------------- ---------------- ----------------
Reorganization costs 0 0 0 0 0
- ------------------------------------- ---------------- ---------------- ---------------- ---------------- ----------------
Miscellaneous 0 0 0 0 0
- ------------------------------------- ---------------- ---------------- ---------------- ---------------- ----------------
Total expenses 103 28 746 681 5
- ------------------------------------- ---------------- ---------------- ---------------- ---------------- ----------------
Net Investment Income 1,083 176 6,008 5,784 40
===================================== ================ ================ ================ ================ ================
Net Realized and Unrealized Gain
(Loss):
Net realized gain (loss) on
investments 840 (38) 1,039 1,757 0
- ------------------------------------- ---------------- ---------------- ---------------- ---------------- ----------------
Net realized gain (loss) on futures
contracts and written options 522 0 667 2,151 (1)
- ------------------------------------- ---------------- ---------------- ---------------- ---------------- ----------------
Net realized gain (loss) on foreign
currency transactions 0 21 (1,043) (867) (7)
- ------------------------------------- ---------------- ---------------- ---------------- ---------------- ----------------
Net change in unrealized appreciation
(depreciation) on investments 1,055 46 4,476 2,529 33
- ------------------------------------- ---------------- ---------------- ---------------- ---------------- ----------------
Net change in unrealized appreciation
(depreciation) on futures contracts
and written options 36 0 416 1,590 (3)
- ------------------------------------- ---------------- ---------------- ---------------- ---------------- ----------------
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities denominated
in foreign currencies 0 (10) 6,953 (1,604) (3)
- ------------------------------------- ---------------- ---------------- ---------------- ---------------- ----------------
Net gain 2,453 19 12,508 5,556 19
- ------------------------------------- ---------------- ---------------- ---------------- ---------------- ----------------
Net Increase in Assets Resulting
from Operations $ 3,536 $ 195 $ 18,516 $ 11,340 $ 59
===================================== ================ ================ ================ ================ ================
<CAPTION>
Money StocksPLUS Strategic
High Yield Fund Market Fund Fund Balanced Fund
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Investment Income:
Interest $ 53,107 $ 3,675 $ 36,816 $ 1,418
- -------------------------------------------- ---------------- ---------------- ---------------- ----------------
Dividends 3,283 0 0 5
- -------------------------------------------- ---------------- ---------------- ---------------- ----------------
Total Income 56,390 3,675 36,816 1,423
============================================ ================ ================ ================ ================
Expenses:
Investment advisory fees 1,497 98 839 38
- -------------------------------------------- ---------------- ---------------- ---------------- ----------------
Administration fees 1,749 201 582 24
- -------------------------------------------- ---------------- ---------------- ---------------- ----------------
Distribution fees-Administrative Class 18 0 1 0
- -------------------------------------------- ---------------- ---------------- ---------------- ----------------
Distribution and servicing fees-Retail
Classes 1,541 59 271 0
- -------------------------------------------- ---------------- ---------------- ---------------- ----------------
Trustees' fees 9 1 3 0
- -------------------------------------------- ---------------- ---------------- ---------------- ----------------
Reorganization costs 1 0 1 0
- -------------------------------------------- ---------------- ---------------- ---------------- ----------------
Miscellaneous 2 2 0 0
- -------------------------------------------- ---------------- ---------------- ---------------- ----------------
Total expenses 4,817 361 1,697 62
- -------------------------------------------- ---------------- ---------------- ---------------- ----------------
Net Investment Income 51,573 3,314 35,119 1,361
============================================ ================ ================ ================ ================
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investments 6,591 0 143 11
- -------------------------------------------- ---------------- ---------------- ---------------- ----------------
Net realized gain (loss) on futures
contracts and written options 0 0 28,324 110
- -------------------------------------------- ---------------- ---------------- ---------------- ----------------
Net realized gain (loss) on foreign currency
transactions 0 0 714 12
- -------------------------------------------- ---------------- ---------------- ---------------- ----------------
Net change in unrealized appreciation
(depreciation) on investments 45,087 0 2,342 169
- -------------------------------------------- ---------------- ---------------- ---------------- ----------------
Net change in unrealized appreciation
(depreciation) on futures contracts and
written options 0 0 19,187 1,004
- -------------------------------------------- ---------------- ---------------- ---------------- ----------------
Net change in unrealized appreciation
(depreciation) on translation of assets
and liabilities denominated in foreign
currencies 0 0 (263) (11)
- -------------------------------------------- ---------------- ---------------- ---------------- ----------------
Net gain 51,678 0 50,447 1,295
- -------------------------------------------- ---------------- ---------------- ---------------- ----------------
Net Increase in Assets Resulting from
Operations $ 103,251 $ 3,314 $ 85,566 $ 2,656
============================================ ================ ================ ================ ================
</TABLE>
1997 Semiannual Report See accompanying notes 25
<PAGE>
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
$ in thousands
Total Return Fund Total Return Fund II
-------------------------------------- ------------------------------------
Period Ended Year Ended Period Ended Year Ended
September 30, 1997 March 31, 1997 September 30, 1997 March 31, 1997
Increase (Decrease) in Net Assets from: (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Operations
Net investment income $ 443,015 $ 770,314 $ 13,867 $ 29,897
- --------------------------------------------------- --------------------------------- ------------------------------------
Net realized gain (loss) 278,415 (57,928) 8,897 (3,972)
- --------------------------------------------------- --------------------------------- ------------------------------------
Net change in unrealized appreciation (depreciation) 335,648 15,459 9,426 514
- --------------------------------------------------- --------------------------------- ------------------------------------
Net increase (decrease) resulting from operations 1,057,078 727,845 32,190 26,439
- --------------------------------------------------- --------------------------------- ------------------------------------
Distributions to Shareholders
From net investment income
Institutional Class (422,171) (737,816) (13,662) (29,298)
- --------------------------------------------------- --------------------------------- ------------------------------------
Administrative Class (5,475) (8,454) (203) (270)
- --------------------------------------------------- --------------------------------- ------------------------------------
Retail Classes (15,511) (5,252) 0 0
- --------------------------------------------------- --------------------------------- ------------------------------------
In excess of net investment income
Institutional Class 0 (18,432) 0 (328)
- --------------------------------------------------- --------------------------------- ------------------------------------
Administrative Class 0 (211) 0 (3)
- --------------------------------------------------- --------------------------------- ------------------------------------
Retail Classes 0 (131) 0 0
- --------------------------------------------------- --------------------------------- ------------------------------------
From net realized capital gains
Institutional Class 0 0 0 0
- --------------------------------------------------- --------------------------------- ------------------------------------
Administrative Class 0 0 0 0
- --------------------------------------------------- --------------------------------- ------------------------------------
Retail Classes 0 0 0 0
- --------------------------------------------------- --------------------------------- ------------------------------------
In excess of net realized capital gains
Institutional Class 0 0 0 0
- --------------------------------------------------- --------------------------------- ------------------------------------
Administrative Class 0 0 0 0
- --------------------------------------------------- --------------------------------- ------------------------------------
Retail Classes 0 0 0 0
- --------------------------------------------------- --------------------------------- ------------------------------------
Tax basis return of capital
Institutional Class 0 0 0 0
- --------------------------------------------------- --------------------------------- ------------------------------------
Administrative Class 0 0 0 0
- --------------------------------------------------- --------------------------------- ------------------------------------
Retail Classes 0 0 0 0
- --------------------------------------------------- --------------------------------- ------------------------------------
Total Distributions (443,157) (770,296) (13,865) (29,899)
- --------------------------------------------------- --------------------------------- ------------------------------------
Fund Share Transactions
Receipts for shares sold
Institutional Class 2,458,153 3,709,839 117,957 88,832
- --------------------------------------------------- --------------------------------- ------------------------------------
Administrative Class 93,312 132,504 4,203 1,824
- --------------------------------------------------- --------------------------------- ------------------------------------
Retail Classes 219,388 59,247 0 0
- --------------------------------------------------- --------------------------------- ------------------------------------
Issued in reorganization
Retail Classes 0 499,338 0 0
- --------------------------------------------------- --------------------------------- ------------------------------------
Issued as reinvestment of distributions
Institutional Class 338,693 606,425 12,193 28,378
- --------------------------------------------------- --------------------------------- ------------------------------------
Administrative Class 5,373 8,479 201 273
- --------------------------------------------------- --------------------------------- ------------------------------------
Retail Classes 11,573 3,729 0 0
- --------------------------------------------------- --------------------------------- ------------------------------------
Cost of shares redeemed
Institutional Class (1,780,010) (2,001,935) (237,696) (90,902)
- --------------------------------------------------- --------------------------------- ------------------------------------
Administrative Class (29,650) (94,080) (946) (93)
- --------------------------------------------------- --------------------------------- ------------------------------------
Retail Classes (83,784) (34,612) 0 0
- --------------------------------------------------- --------------------------------- ------------------------------------
Net increase (decrease) resulting from Fund share
transactions 1,233,048 2,888,934 (104,088) 28,312
- --------------------------------------------------- --------------------------------- ------------------------------------
Total Increase (Decrease) in Net Assets 1,846,969 2,846,483 (85,763) 24,852
- --------------------------------------------------- --------------------------------- ------------------------------------
Net Assets
Beginning of period 13,198,706 10,352,223 483,755 458,903
- --------------------------------------------------- --------------------------------- ------------------------------------
End of period * $ 15,045,675 $ 13,198,706 $ 397,992 $ 483,755
- --------------------------------------------------- --------------------------------- ------------------------------------
*Including net undistributed (overdistributed)
investment income of: $ (25,420) $ (25,279) $ (1,500) $ (1,503)
- --------------------------------------------------- --------------------------------- ------------------------------------
<CAPTION>
Total Return Fund III
------------------------------------
Period Ended Year Ended
September 30, 1997 March 31, 1997
Increase (Decrease) in Net Assets from: (Unaudited)
<S> <C> <C>
Operations
Net investment income $ 7,100 $ 10,473
- --------------------------------------------------- ------------------------------------
Net realized gain (loss) 4,514 (2,381)
- --------------------------------------------------- ------------------------------------
Net change in unrealized appreciation (depreciation) 4,714 2,258
- --------------------------------------------------- ------------------------------------
Net increase (decrease) resulting from operations 16,328 10,350
- --------------------------------------------------- ------------------------------------
Distributions to Shareholders
From net investment income
Institutional Class (7,088) (10,093)
- --------------------------------------------------- ------------------------------------
Administrative Class (3) 0
- --------------------------------------------------- ------------------------------------
Retail Classes 0 0
- --------------------------------------------------- ------------------------------------
In excess of net investment income
Institutional Class 0 (380)
- --------------------------------------------------- ------------------------------------
Administrative Class 0 0
- --------------------------------------------------- ------------------------------------
Retail Classes 0 0
- --------------------------------------------------- ------------------------------------
From net realized capital gains
Institutional Class 0 (283)
- --------------------------------------------------- ------------------------------------
Administrative Class 0 0
- --------------------------------------------------- ------------------------------------
Retail Classes 0 0
- --------------------------------------------------- ------------------------------------
In excess of net realized capital gains
Institutional Class 0 0
- --------------------------------------------------- ------------------------------------
Administrative Class 0 0
- --------------------------------------------------- ------------------------------------
Retail Classes 0 0
- --------------------------------------------------- ------------------------------------
Tax basis return of capital
Institutional Class 0 0
- --------------------------------------------------- ------------------------------------
Administrative Class 0 0
- --------------------------------------------------- ------------------------------------
Retail Classes 0 0
- --------------------------------------------------- ------------------------------------
Total Distributions (7,091) (10,756)
- --------------------------------------------------- ------------------------------------
Fund Share Transactions
Receipts for shares sold
Institutional Class 92,231 56,444
- --------------------------------------------------- ------------------------------------
Administrative Class 125 0
- --------------------------------------------------- ------------------------------------
Retail Classes 0 0
- --------------------------------------------------- ------------------------------------
Issued in reorganization
Retail Classes 0 0
- --------------------------------------------------- ------------------------------------
Issued as reinvestment of distributions
Institutional Class 6,725 10,374
- --------------------------------------------------- ------------------------------------
Administrative Class 0 0
- --------------------------------------------------- ------------------------------------
Retail Classes 0 0
- --------------------------------------------------- ------------------------------------
Cost of shares redeemed
Institutional Class (8,479) (15,338)
- --------------------------------------------------- ------------------------------------
Administrative Class (3) 0
- --------------------------------------------------- ------------------------------------
Retail Classes 0 0
- --------------------------------------------------- ------------------------------------
Net increase (decrease) resulting from Fund share
transactions 90,599 51,480
- --------------------------------------------------- ------------------------------------
Total Increase (Decrease) in Net Assets 99,836 51,074
- --------------------------------------------------- ------------------------------------
Net Assets
Beginning of period 193,297 142,223
- --------------------------------------------------- ------------------------------------
End of period * $ 293,133 $ 193,297
- --------------------------------------------------- ------------------------------------
*Including net undistributed (overdistributed)
investment income of: $ (871) $ (880)
- --------------------------------------------------- ------------------------------------
</TABLE>
26 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Total Return
Mortgage Fund Moderate Duration Fund
------------------ -------------------------------------
Period Ended Period Ended Year Ended
September 30, 1997 September 30, 1997 March 31, 1997
(Unaudited) (Unaudited)
<S> <C> <C> <C>
Increase (Decrease) in Net Assets from:
Operations
Net investment income $ 34 $ 1,500 $ 160
- ------------------------------------------------ ----------------- -------------------------------------
Net realized gain (loss) 2 296 (12)
- ------------------------------------------------ ----------------- -------------------------------------
Net change in unrealized appreciation (depreciation) 20 867 (164)
- ------------------------------------------------ ----------------- -------------------------------------
Net increase (decrease) resulting from operations 56 2,663 (16)
- ------------------------------------------------ ----------------- -------------------------------------
Distributions to Shareholders
From net investment income
Institutional Class (36) (1,501) (159)
- ------------------------------------------------ ----------------- -------------------------------------
Administrative Class 0 0 0
- ------------------------------------------------ ----------------- -------------------------------------
Retail Classes 0 0 0
- ------------------------------------------------ ----------------- -------------------------------------
In excess of net investment income
Institutional Class 0 0 0
- ------------------------------------------------ ----------------- -------------------------------------
Administrative Class 0 0 0
- ------------------------------------------------ ----------------- -------------------------------------
Retail Classes 0 0 0
- ------------------------------------------------ ----------------- -------------------------------------
From net realized capital gains
Institutional Class 0 0 0
- ------------------------------------------------ ----------------- -------------------------------------
Administrative Class 0 0 0
- ------------------------------------------------ ----------------- -------------------------------------
Retail Classes 0 0 0
- ------------------------------------------------ ----------------- -------------------------------------
In excess of net realized capital gains
Institutional Class 0 0 0
- ------------------------------------------------ ----------------- -------------------------------------
Administrative Class 0 0 0
- ------------------------------------------------ ----------------- -------------------------------------
Retail Classes 0 0 0
- ------------------------------------------------ ----------------- -------------------------------------
Tax basis return of capital
Institutional Class 0 0 0
- ------------------------------------------------ ----------------- -------------------------------------
Administrative Class 0 0 0
- ------------------------------------------------ ----------------- -------------------------------------
Retail Classes 0 0 0
- ------------------------------------------------ ----------------- -------------------------------------
Total Distributions (36) (1,501) (159)
- ------------------------------------------------ ----------------- -------------------------------------
Fund Share Transactions
Receipts for shares sold
Institutional Class 3,315 59,993 13,681
- ------------------------------------------------ ----------------- -------------------------------------
Administrative Class 0 0 0
- ------------------------------------------------ ----------------- -------------------------------------
Retail Classes 0 0 0
- ------------------------------------------------ ----------------- -------------------------------------
Issued in reorganization
Retail Classes 0 0 0
- ------------------------------------------------ ----------------- -------------------------------------
Issued as reinvestment of distributions
Institutional Class 36 1,499 159
- ------------------------------------------------ ----------------- -------------------------------------
Administrative Class 0 0 0
- ------------------------------------------------ ----------------- -------------------------------------
Retail Classes 0 0 0
- ------------------------------------------------ ----------------- -------------------------------------
Cost of shares redeemed
Institutional Class 0 (3,268) (207)
- ------------------------------------------------ ----------------- -------------------------------------
Administrative Class 0 0 0
- ------------------------------------------------ ----------------- -------------------------------------
Retail Classes 0 0 0
- ------------------------------------------------ ----------------- -------------------------------------
Net increase (decrease) resulting from Fund share
transactions 3,351 58,224 13,633
- ------------------------------------------------ ----------------- -------------------------------------
Total Increase (Decrease) in Net Assets 3,371 59,386 13,458
- ------------------------------------------------ ----------------- -------------------------------------
Net Assets
Beginning of period 0 13,458 0
- ------------------------------------------------ ----------------- -------------------------------------
End of period * $ 3,371 $ 72,844 $ 13,458
- ------------------------------------------------ ----------------- -------------------------------------
*Including net undistributed (overdistributed)
investment income of: $ (2) $ 2 $ 2
- ------------------------------------------------ ----------------- -------------------------------------
Low Duration Fund Low Duration Fund II
-------------------------------------- --------------------------------------
Period Ended Year Ended Period Ended Year Ended
September 30, 1997 March 31, 1997 September 30, 1997 March 31, 1997
(Unaudited) (Unaudited)
Increase (Decrease) in Net Assets from:
<S> <C> <C> <C> <C>
Operations
Net investment income $ 90,399 $ 177,362 $ 10,099 $ 17,299
- ------------------------------------------------- ------------------------------------- -------------------------------------
Net realized gain (loss) 16,191 1,645 1,233 (1,091)
- ------------------------------------------------- ------------------------------------- -------------------------------------
Net change in unrealized appreciation (depreciation) 45,884 4,354 4,502 (128)
- ------------------------------------------------- ------------------------------------- -------------------------------------
Net increase (decrease) resulting from operations 152,474 183,361 15,834 16,080
- ------------------------------------------------- ------------------------------------- -------------------------------------
Distributions to Shareholders
From net investment income
Institutional Class (86,047) (170,430) (10,091) (15,937)
- ------------------------------------------------- ------------------------------------- -------------------------------------
Administrative Class (787) (511) 0 0
- ------------------------------------------------- ------------------------------------- -------------------------------------
Retail Classes (3,524) (1,302) 0 0
- ------------------------------------------------- ------------------------------------- -------------------------------------
In excess of net investment income
Institutional Class 0 (5,074) 0 (469)
- ------------------------------------------------- ------------------------------------- -------------------------------------
Administrative Class 0 (15) 0 0
- ------------------------------------------------- ------------------------------------- -------------------------------------
Retail Classes 0 (38) 0 0
- ------------------------------------------------- ------------------------------------- -------------------------------------
From net realized capital gains
Institutional Class 0 0 0 0
- ------------------------------------------------- ------------------------------------- -------------------------------------
Administrative Class 0 0 0 0
- ------------------------------------------------- ------------------------------------- -------------------------------------
Retail Classes 0 0 0 0
- ------------------------------------------------- ------------------------------------- -------------------------------------
In excess of net realized capital gains
Institutional Class 0 0 0 0
- ------------------------------------------------- ------------------------------------- -------------------------------------
Administrative Class 0 0 0 0
- ------------------------------------------------- ------------------------------------- -------------------------------------
Retail Classes 0 0 0 0
- ------------------------------------------------- ------------------------------------- -------------------------------------
Tax basis return of capital
Institutional Class 0 0 0 (280)
- ------------------------------------------------- ------------------------------------- -------------------------------------
Administrative Class 0 0 0 0
- ------------------------------------------------- ------------------------------------- -------------------------------------
Retail Classes 0 0 0 0
- ------------------------------------------------- ------------------------------------- -------------------------------------
Total Distributions (90,358) (177,370) (10,091) (16,686)
- ------------------------------------------------- ------------------------------------- -------------------------------------
Fund Share Transactions
Receipts for shares sold
Institutional Class 744,927 1,394,715 83,817 139,963
- ------------------------------------------------- ------------------------------------- -------------------------------------
Administrative Class 10,591 22,564 0 0
- ------------------------------------------------- ------------------------------------- -------------------------------------
Retail Classes 143,832 39,148 0 0
- ------------------------------------------------- ------------------------------------- -------------------------------------
Issued in reorganization
Retail Classes 0 120,271 0 0
- ------------------------------------------------- ------------------------------------- -------------------------------------
Issued as reinvestment of distributions
Institutional Class 71,486 149,996 9,569 15,824
- ------------------------------------------------- ------------------------------------- -------------------------------------
Administrative Class 781 518 0 0
- ------------------------------------------------- ------------------------------------- -------------------------------------
Retail Classes 3,017 1,143 0 0
- ------------------------------------------------- ------------------------------------- -------------------------------------
Cost of shares redeemed
Institutional Class (874,976) (1,432,178) (111,764) (69,105)
- ------------------------------------------------- ------------------------------------- -------------------------------------
Administrative Class (9,218) (1,971) 0 0
- ------------------------------------------------- ------------------------------------- -------------------------------------
Retail Classes (137,525) (31,492) 0 0
- ------------------------------------------------- ------------------------------------- -------------------------------------
Net increase (decrease) resulting from Fund share
transactions (47,085) 262,714 (18,378) 86,682
- ------------------------------------------------- ------------------------------------- -------------------------------------
Total Increase (Decrease) in Net Assets 15,031 268,705 (12,635) 86,076
- ------------------------------------------------- ------------------------------------- -------------------------------------
Net Assets
Beginning of period 2,948,815 2,680,110 339,375 253,299
- ------------------------------------------------- ------------------------------------- -------------------------------------
End of period * $ 2,963,846 $ 2,948,815 $ 326,740 $ 339,375
- ------------------------------------------------- ------------------------------------- -------------------------------------
*Including net undistributed (overdistributed)
investment income of: $ (6,991) $ (7,032) $ (1,265) $ (1,272)
- ------------------------------------------------- ------------------------------------- -------------------------------------
</TABLE>
1997 Semiannual Report See accompanying notes 27
<PAGE>
Statement of Changes in Net Assets (Cont.)
$ in thousands
<TABLE>
<CAPTION>
Low Duration
Low Duration Fund III Mortgage Fund
----------------------------------- ------------------
Period Ended Year Ended Period Ended
September 30, 1997 March 31, 1997 September 30, 1997
Increase (Decrease) in Net Assets from: (Unaudited) (Unaudited)
<S> <C> <C> <C>
Operations
Net investment income $ 347 $ 149 $ 30
- ----------------------------------------------------- ---------------------------------- ------------------
Net realized gain (loss) 66 (32) (3)
- ----------------------------------------------------- ---------------------------------- ------------------
Net change in unrealized appreciation (depreciation) 103 (61) 47
- ----------------------------------------------------- ---------------------------------- ------------------
Net increase (decrease) resulting from operations 516 56 74
===================================================== ================================== ==================
Distributions to Shareholders
From net investment income
Institutional Class (348) (149) (31)
- ----------------------------------------------------- ---------------------------------- ------------------
Administrative Class 0 0 0
- ----------------------------------------------------- ---------------------------------- ------------------
Retail Classes 0 0 0
- ----------------------------------------------------- ---------------------------------- ------------------
In excess of net investment income
Institutional Class 0 0 0
- ----------------------------------------------------- ---------------------------------- ------------------
Administrative Class 0 0 0
- ----------------------------------------------------- ---------------------------------- ------------------
Retail Classes 0 0 0
- ----------------------------------------------------- ---------------------------------- ------------------
From net realized capital gains
Institutional Class 0 0 0
- ----------------------------------------------------- ---------------------------------- ------------------
Administrative Class 0 0 0
- ----------------------------------------------------- ---------------------------------- ------------------
Retail Classes 0 0 0
- ----------------------------------------------------- ---------------------------------- ------------------
In excess of net realized capital gains
Institutional Class 0 0 0
- ----------------------------------------------------- ---------------------------------- ------------------
Administrative Class 0 0 0
- ----------------------------------------------------- ---------------------------------- ------------------
Retail Classes 0 0 0
- ----------------------------------------------------- ---------------------------------- ------------------
Tax basis return of capital
Institutional Class 0 0 0
- ----------------------------------------------------- ---------------------------------- ------------------
Administrative Class 0 0 0
- ----------------------------------------------------- ---------------------------------- ------------------
Retail Classes 0 0 0
- ----------------------------------------------------- ---------------------------------- ------------------
Total Distributions (348) (149) (31)
===================================================== ================================== ==================
Fund Share Transactions
Receipts for shares sold
Institutional Class 1,750 10,000 3,300
- ----------------------------------------------------- ---------------------------------- ------------------
Administrative Class 0 0 0
- ----------------------------------------------------- ---------------------------------- ------------------
Retail Classes 0 0 0
- ----------------------------------------------------- ---------------------------------- ------------------
Issued in reorganization
Retail Classes 0 0 0
- ----------------------------------------------------- ---------------------------------- ------------------
Issued as reinvestment of distributions
Institutional Class 347 149 31
- ----------------------------------------------------- ---------------------------------- ------------------
Administrative Class 0 0 0
- ----------------------------------------------------- ---------------------------------- ------------------
Retail Classes 0 0 0
- ----------------------------------------------------- ---------------------------------- ------------------
Cost of shares redeemed
Institutional Class 0 0 0
- ----------------------------------------------------- ---------------------------------- ------------------
Administrative Class 0 0 0
- ----------------------------------------------------- ---------------------------------- ------------------
Retail Classes 0 0 0
- ----------------------------------------------------- ---------------------------------- ------------------
Net increase (decrease) resulting from Fund share
transactions 2,097 10,149 3,331
- ----------------------------------------------------- ---------------------------------- ------------------
Total Increase (Decrease) in Net Assets 2,265 10,056 3,374
===================================================== ================================== ==================
Net Assets
Beginning of period 10,056 0 0
- ----------------------------------------------------- ---------------------------------- ------------------
End of period * $ 12,321 $ 10,056 $ 3,374
- ----------------------------------------------------- ---------------------------------- ------------------
*Including net undistributed (overdistributed)
investment income of: $ (5) $ (5) $ 0
- ----------------------------------------------------- ---------------------------------- ------------------
</TABLE>
<TABLE>
<CAPTION>
Short-Term Fund
-----------------------------------------
Period Ended Year Ended
Increase (Decrease) in Net Assets from: Septembeer 30, 1997 March 31, 1997
<S> <C> <C>
Operations
Net investment income $ 5,733 $ 7,616
- --------------------------------------------------------------------------------------------------
Net realized gain (loss) 447 282
- --------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 943 620
- --------------------------------------------------------------------------------------------------
Net increase (decrease) resulting from operations 7,123 8,518
==================================================================================================
Distributions to Shareholders
From net investment income
Institutional Class (5,366) (7,220)
- --------------------------------------------------------------------------------------------------
Administrative Class (102) (221)
- --------------------------------------------------------------------------------------------------
Retail Classes (251) (15)
- --------------------------------------------------------------------------------------------------
In excess of net investment income
Institutional Class 0 (156)
- --------------------------------------------------------------------------------------------------
Administrative Class 0 (5)
- --------------------------------------------------------------------------------------------------
Retail Classes 0 0
- --------------------------------------------------------------------------------------------------
From net realized capital gains
Institutional Class 0 0
- --------------------------------------------------------------------------------------------------
Administrative Class 0 0
- --------------------------------------------------------------------------------------------------
Retail Classes 0 0
- --------------------------------------------------------------------------------------------------
In excess of net realized capital gains
Institutional Class 0 0
- --------------------------------------------------------------------------------------------------
Administrative Class 0 0
- --------------------------------------------------------------------------------------------------
Retail Classes 0 0
- --------------------------------------------------------------------------------------------------
Tax basis return of capital
Institutional Class 0 0
- --------------------------------------------------------------------------------------------------
Administrative Class 0 0
- --------------------------------------------------------------------------------------------------
Retail Classes 0 0
- --------------------------------------------------------------------------------------------------
Total Distributions (5,719) (7,617)
==================================================================================================
Fund Share Transactions
Receipts for shares sold
Institutional Class 153,726 180,257
- --------------------------------------------------------------------------------------------------
Administrative Class 4,147 8,640
- --------------------------------------------------------------------------------------------------
Retail Classes 14,985 6,035
- --------------------------------------------------------------------------------------------------
Issued in reorganization
Retail Classes 0 0
- --------------------------------------------------------------------------------------------------
Issued as reinvestment of distributions
Institutional Class 4,419 6,243
- --------------------------------------------------------------------------------------------------
Administrative Class 14 15
- --------------------------------------------------------------------------------------------------
Retail Classes 219 10
- --------------------------------------------------------------------------------------------------
Cost of shares redeemed
Institutional Class (143,369) (132,676)
- --------------------------------------------------------------------------------------------------
Administrative Class (4,021) (8,162)
- --------------------------------------------------------------------------------------------------
Retail Classes (7,393) (2,025)
- --------------------------------------------------------------------------------------------------
Net increase (decrease) resulting from Fund share
transactions 22,727 58,337
- --------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets 24,131 59,238
==================================================================================================
Net Assets
Beginning of period 165,034 105,796
- --------------------------------------------------------------------------------------------------
End of period * $ 189,165 $ 165,034
- --------------------------------------------------------------------------------------------------
*Including net undistributed (overdistributed)
investment income of: $ (193) $ (208)
- --------------------------------------------------------------------------------------------------
</TABLE>
28 PIMCO Funds See accompanying notes
<PAGE>
Statement of changes in Net Assets (Con't)
<TABLE>
<CAPTION>
Long-Term U.S. Gov't Fund Real Return Bond Fund
------------------------------- -----------------------------------
Period Ended Year Ended Period Ended Year Ended
September 30, 1997 March 31, 1997 September 30, 1997 March 31, 1997
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets from:
Operations
Net investment income $ 1,083 $ 1,963 $ 176 $ 63
- ------------------------------------------------ --------------------------------- ------------------------------------
Net realized gain (loss) 1,362 (431) (17) 1
- ------------------------------------------------ --------------------------------- ------------------------------------
Net change in unrealized appreciation
(depreciation) 1,091 (602) 36 (67)
- ------------------------------------------------ --------------------------------- ------------------------------------
Net increase (decrease) resulting from
operations 3,536 930 195 (3)
- ------------------------------------------------ --------------------------------- ------------------------------------
Distributions to Shareholders
From net investment income
Institutional Class (975) (1,773) (143) (45)
- ------------------------------------------------ --------------------------------- ------------------------------------
Administrative Class (2) 0 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
Retail Classes (102) (13) (34) (1)
- ------------------------------------------------ --------------------------------- ------------------------------------
In excess of net investment income
Institutional Class 0 0 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
Administrative Class 0 0 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
Retail Classes 0 0 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
From net realized capital gains
Institutional Class 0 (693) 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
Administrative Class 0 0 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
Retail Classes 0 0 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
In excess of net realized capital gains
Institutional Class 0 0 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
Administrative Class 0 0 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
Retail Classes 0 0 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
Tax basis return of capital
Institutional Class 0 0 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
Administrative Class 0 0 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
Retail Classes 0 0 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
Total Distributions (1,079) (2,479) (177) (46)
- ------------------------------------------------ --------------------------------- ------------------------------------
Fund Share Transactions
Receipts for shares sold
Institutional Class 30,755 6,985 278 5,636
- ------------------------------------------------ --------------------------------- ------------------------------------
Administrative Class 3,326 0 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
Retail Classes 4,431 1,987 1,921 663
- ------------------------------------------------ --------------------------------- ------------------------------------
Issued in reorganization
Retail Classes 0 0 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
Issued as reinvestment of distributions
Institutional Class 683 2,113 142 45
- ------------------------------------------------ --------------------------------- ------------------------------------
Administrative Class 0 0 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
Retail Classes 57 3 29 1
- ------------------------------------------------ --------------------------------- ------------------------------------
Cost of shares redeemed
Institutional Class (18,752) (20,121) 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
Administrative Class 0 0 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
Retail Classes (494) (1) (525) 0
- ------------------------------------------------ --------------------------------- ------------------------------------
Net increase (decrease) resulting from Fund
share transactions 20,006 (9,034) 1,845 6,345
- ------------------------------------------------ --------------------------------- ------------------------------------
Total Increase (Decrease) in Net Assets 22,463 (10,583) 1,863 6,296
================================================ ================================= ====================================
Net Assets
Beginning of period 21,928 32,511 6,296 0
- ------------------------------------------------ --------------------------------- ------------------------------------
End of period * $ 44,391 $ 21,928 $ 8,159 $ 6,296
- ------------------------------------------------ --------------------------------- ------------------------------------
*Including net undistributed (overdistributed)
investment income of: $ 443 $ 438 $ 20 $ 19
- ------------------------------------------------ --------------------------------- ------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Foreign Bond Fund Global Bond Fund
--------------------------------- ------------------------------------
Period Ended Year Ended Period Ended Year Ended
September 30, 1997 March 31, 1997 September 30, 1997 March 31, 1997
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets from:
Operations
Net investment income $ 6,008 $ 17,013 $ 5,784 $ 12,777
- ------------------------------------------------ --------------------------------- ------------------------------------
Net realized gain (loss) 663 25,654 3,041 479
- ------------------------------------------------ --------------------------------- ------------------------------------
Net change in unrealized appreciation
(depreciation) 11,845 (7,478) 2,515 (4,670)
- ------------------------------------------------ --------------------------------- ------------------------------------
Net increase (decrease) resulting from
operations 18,516 35,189 11,340 8,586
================================================ ================================= ------------------------------------
Distributions to Shareholders
From net investment income
Institutional Class (5,817) (7,980) (5,669) (7,187)
- ------------------------------------------------ --------------------------------- ------------------------------------
Administrative Class (3) (0) (112) (4)
- ------------------------------------------------ --------------------------------- ------------------------------------
Retail Classes (184) (6) 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
In excess of net investment income
Institutional Class 0 0 0 (17)
- ------------------------------------------------ --------------------------------- ------------------------------------
Administrative Class 0 0 0 (0)
- ------------------------------------------------ --------------------------------- ------------------------------------
Retail Classes 0 0 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
From net realized capital gains
Institutional Class 0 (24,345) 0 (2,270)
- ------------------------------------------------ --------------------------------- ------------------------------------
Administrative Class 0 0 0 (4)
- ------------------------------------------------ --------------------------------- ------------------------------------
Retail Classes 0 0 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
In excess of net realized capital gains
Institutional Class 0 0 0 (5,240)
- ------------------------------------------------ --------------------------------- ------------------------------------
Administrative Class 0 0 0 (9)
- ------------------------------------------------ --------------------------------- ------------------------------------
Retail Classes 0 0 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
Tax basis return of capital
Institutional Class 0 0 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
Administrative Class 0 0 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
Retail Classes 0 0 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
Total Distributions (6,004) (32,331) (5,781) (14,731)
================================================ --------------------------------- ------------------------------------
Fund Share Transactions
Receipts for shares sold
Institutional Class 94,892 155,503 60,200 87,843
- ------------------------------------------------ --------------------------------- ------------------------------------
Administrative Class 207 30 11,235 632
- ------------------------------------------------ --------------------------------- ------------------------------------
Retail Classes 15,431 3,760 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
Issued in reorganization
Retail Classes 0 0 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
Issued as reinvestment of distributions
Institutional Class 4,267 23,548 4,100 12,695
- ------------------------------------------------ --------------------------------- ------------------------------------
Administrative Class 3 0 96 17
- ------------------------------------------------ --------------------------------- ------------------------------------
Retail Classes 162 6 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
Cost of shares redeemed
Institutional Class (33,534) (205,567) (16,032) (12,625)
- ------------------------------------------------ --------------------------------- ------------------------------------
Administrative Class (9) 0 (10,939) (273)
- ------------------------------------------------ --------------------------------- ------------------------------------
Retail Classes (705) (8) 0 0
- ------------------------------------------------ --------------------------------- ------------------------------------
Net increase (decrease) resulting from Fund
share transactions 80,714 (22,728) 48,660 88,289
- ------------------------------------------------ --------------------------------- ------------------------------------
Total Increase (Decrease) in Net Assets 93,226 (19,870) 54,219 82,144
- ------------------------------------------------ --------------------------------- ------------------------------------
Net Assets
Beginning of period 238,623 258,493 215,977 133,833
- ------------------------------------------------ --------------------------------- ------------------------------------
End of period * $ 331,849 $ 238,623 $ 270,196 $ 215,977
- ------------------------------------------------ --------------------------------- ------------------------------------
*Including net undistributed (overdistributed)
investment income of: $ 12,312 $ 12,308 $ 5,557 $ 5,553
- ------------------------------------------------ --------------------------------- ------------------------------------
</TABLE>
1997 Semiannual Report See accompanying notes 29
<PAGE>
Statement of Changes in Net Assets (Cont.)
<TABLE>
<CAPTION>
Emerging
$ in thousands Markets Fund High Yield Fund
------------------ ------------------------------------
Period Ended Period Ended Year Ended
September 30, 1997 September 30, 1997 March 31, 1997
Increase (Decrease) in Net Assets from: (Unaudited) (Unaudited)
<S> <C> <C> <C>
Operations
Net investment income $ 40 $ 51,573 $ 68,899
- -------------------------------------------------------- ----------------- ------------------------------------
Net realized gain (loss) (8) 6,591 15,566
- -------------------------------------------------------- ----------------- ------------------------------------
Net change in unrealized appreciation (depreciation) 27 45,087 1,240
- -------------------------------------------------------- ----------------- ------------------------------------
Net increase resulting from operations 59 103,251 85,705
- -------------------------------------------------------- ----------------- ------------------------------------
Distributions to Shareholders
From net investment income
Institutional Class (40) (37,864) (64,102)
- -------------------------------------------------------- ----------------- ------------------------------------
Administrative Class 0 (626) (407)
- -------------------------------------------------------- ----------------- ------------------------------------
Retail Classes (1) (13,079) (4,408)
- -------------------------------------------------------- ----------------- ------------------------------------
In excess of net investment income
Institutional Class 0 0 0
- -------------------------------------------------------- ----------------- ------------------------------------
Administrative Class 0 0 0
- -------------------------------------------------------- ----------------- ------------------------------------
Retail Classes 0 0 0
- -------------------------------------------------------- ----------------- ------------------------------------
From net realized capital gains
Institutional Class 0 0 (9,166)
- -------------------------------------------------------- ----------------- ------------------------------------
Administrative Class 0 0 (88)
- -------------------------------------------------------- ----------------- ------------------------------------
Retail Classes 0 0 0
- -------------------------------------------------------- ----------------- ------------------------------------
In excess of net realized capital gains
Institutional Class 0 0 0
- -------------------------------------------------------- ----------------- ------------------------------------
Administrative Class 0 0 0
- -------------------------------------------------------- ----------------- ------------------------------------
Retail Classes 0 0 0
- -------------------------------------------------------- ----------------- ------------------------------------
Tax basis return of capital
Institutional Class 0 0 0
- -------------------------------------------------------- ----------------- ------------------------------------
Administrative Class 0 0 0
- -------------------------------------------------------- ----------------- ------------------------------------
Retail Classes 0 0 0
- -------------------------------------------------------- ----------------- ------------------------------------
Total Distributions (41) (51,569) (78,171)
- -------------------------------------------------------- ----------------- ------------------------------------
Fund Share Transactions
Receipts for shares sold
Institutional Class 3,400 393,380 414,058
- -------------------------------------------------------- ----------------- ------------------------------------
Administrative Class 0 13,450 14,665
- -------------------------------------------------------- ----------------- ------------------------------------
Retail Classes 290 114,122 32,970
- -------------------------------------------------------- ----------------- ------------------------------------
Issued in reorganization
Retail Classes 0 0 283,718
- -------------------------------------------------------- ----------------- ------------------------------------
Issued as reinvestment of distributions
Institutional Class 39 34,541 69,870
- -------------------------------------------------------- ----------------- ------------------------------------
Administrative Class 0 441 353
- -------------------------------------------------------- ----------------- ------------------------------------
Retail Classes 1 7,658 2,502
- -------------------------------------------------------- ----------------- ------------------------------------
Cost of shares redeemed
Institutional Class 0 (127,621) (286,865)
- -------------------------------------------------------- ----------------- ------------------------------------
Administrative Class 0 (1,348) (5,554)
- -------------------------------------------------------- ----------------- ------------------------------------
Retail Classes (13) (38,498) (21,876)
- -------------------------------------------------------- ----------------- ------------------------------------
Net increase (decrease) resulting from Fund share
transactions 3,717 396,125 503,841
- -------------------------------------------------------- ----------------- ------------------------------------
Total Increase (Decrease) in Net Assets 3,735 447,807 511,375
- -------------------------------------------------------- ----------------- ------------------------------------
Net Assets
Beginning of period 0 1,049,365 537,990
- -------------------------------------------------------- ----------------- ------------------------------------
End of period * $ 3,735 $ 1,497,172 $ 1,049,365
- -------------------------------------------------------- ----------------- ------------------------------------
*Including net undistributed (overdistributed)
investment income of: $ 0 $ 1,010 $ 1,003
- -------------------------------------------------------- ----------------- ------------------------------------
</TABLE>
<TABLE>
<CAPTION>
$ in thousands Money Market Fund
-------------------------------------
Period Ended Year Ended
September 30, 1997 March 31, 1997
Increase (Decrease) in Net Assets from: (Unaudited)
<S> <C> <C>
Operations
Net investment income $ 3,314 $ 2,257
- -------------------------------------------------------- -------------------------------------
Net realized gain (loss) 0 0
- -------------------------------------------------------- -------------------------------------
Net change in unrealized appreciation (depreciation) 0 0
- -------------------------------------------------------- -------------------------------------
Net increase resulting from operations 3,314 2,257
- -------------------------------------------------------- -------------------------------------
Distributions to Shareholders
From net investment income
Institutional Class (967) (1,360)
- -------------------------------------------------------- -------------------------------------
Administrative Class 0 (1)
- -------------------------------------------------------- -------------------------------------
Retail Classes (2,347) (896)
- -------------------------------------------------------- -------------------------------------
In excess of net investment income
Institutional Class 0 0
- -------------------------------------------------------- -------------------------------------
Administrative Class 0 0
- -------------------------------------------------------- -------------------------------------
Retail Classes 0 0
- -------------------------------------------------------- -------------------------------------
From net realized capital gains
Institutional Class 0 0
- -------------------------------------------------------- -------------------------------------
Administrative Class 0 0
- -------------------------------------------------------- -------------------------------------
Retail Classes 0 0
- -------------------------------------------------------- -------------------------------------
In excess of net realized capital gains
Institutional Class 0 0
- -------------------------------------------------------- -------------------------------------
Administrative Class 0 0
- -------------------------------------------------------- -------------------------------------
Retail Classes 0 0
- -------------------------------------------------------- -------------------------------------
Tax basis return of capital
Institutional Class 0 0
- -------------------------------------------------------- -------------------------------------
Administrative Class 0 0
- -------------------------------------------------------- -------------------------------------
Retail Classes 0 0
- -------------------------------------------------------- -------------------------------------
Total Distributions (3,314) (2,257)
- -------------------------------------------------------- -------------------------------------
Fund Share Transactions
Receipts for shares sold
Institutional Class 59,441 48,817
- -------------------------------------------------------- -------------------------------------
Administrative Class 646 8
- -------------------------------------------------------- -------------------------------------
Retail Classes 1,358,851 570,164
- -------------------------------------------------------- -------------------------------------
Issued in reorganization
Retail Classes 0 69,202
- -------------------------------------------------------- -------------------------------------
Issued as reinvestment of distributions
Institutional Class 749 1,077
- -------------------------------------------------------- -------------------------------------
Administrative Class 0 1
- -------------------------------------------------------- -------------------------------------
Retail Classes 1,705 812
- -------------------------------------------------------- -------------------------------------
Cost of shares redeemed
Institutional Class (46,048) (52,332)
- -------------------------------------------------------- -------------------------------------
Administrative Class (13) (7)
- -------------------------------------------------------- -------------------------------------
Retail Classes (1,385,710) (508,048)
- -------------------------------------------------------- -------------------------------------
Net increase (decrease) resulting from Fund share
transactions (10,379) 129,694
- -------------------------------------------------------- -------------------------------------
Total Increase (Decrease) in Net Assets (10,379) 129,694
- -------------------------------------------------------- -------------------------------------
Net Assets
Beginning of period 155,639 25,945
- -------------------------------------------------------- -------------------------------------
End of period * $ 145,260 $ 155,639
- -------------------------------------------------------- -------------------------------------
*Including net undistributed (overdistributed)
investment income of: $ 0 $ 0
- -------------------------------------------------------- -------------------------------------
</TABLE>
30 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
StocksPLUS Fund Strategic Balanced Fund
----------------------------------- -----------------------------------
Period Ended Year Ended Period Ended Year Ended
September 30, 1997 March 31, 1997 September 30, 1997 March 31, 1997
Increase (Decrease) in Net Assets from: (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Operations
Net investment income $ 35,119 $ 22,028 $ 1,361 $ 772
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Net realized gain (loss) 29,181 19,189 133 602
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Net change in unrealized appreciation (depreciation) 21,266 (10,645) 1,162 (205)
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Net increase resulting from operations 85,566 30,572 2,656 1,169
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Distributions to Shareholders
From net investment income
Institutional Class (8,699) (21,952) (506) (632)
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Administrative Class (23) (8) 0 0
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Retail Classes (2,121) (324) 0 0
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
In excess of net investment income
Institutional Class 0 0 0 0
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Administrative Class 0 0 0 0
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Retail Classes 0 0 0 0
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
From net realized capital gains
Institutional Class 0 (8,793) 0 (212)
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Administrative Class 0 0 0 0
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Retail Classes 0 0 0 0
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
In excess of net realized capital gains
Institutional Class 0 0 0 0
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Administrative Class 0 0 0 0
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Retail Classes 0 0 0 0
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Tax basis return of capital
Institutional Class 0 0 0 0
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Administrative Class 0 0 0 0
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Retail Classes 0 0 0 0
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Total Distributions (10,843) (31,077) (506) (844)
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Fund Share Transactions
Receipts for shares sold
Institutional Class 143,556 91,156 29,225 10,032
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Administrative Class 295 746 0 0
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Retail Classes 101,736 30,494 0 0
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Issued in reorganization
Retail Classes 0 0 0 0
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Issued as reinvestment of distributions
Institutional Class 8,121 28,060 12 3
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Administrative Class 22 8 0 0
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Retail Classes 2,021 306 0 0
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Cost of shares redeemed
Institutional Class (72,360) (36,460) (181) 0
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Administrative Class (45) (58) 0 0
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Retail Classes (9,759) (3,780) 0 0
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Net increase (decrease) resulting from Fund share
transactions 173,587 110,472 29,056 10,035
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Total Increase (Decrease) in Net Assets 248,310 109,967 31,206 10,360
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
Net Assets
Beginning of period 261,836 151,869 10,360 0
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
End of period * $ 510,146 $ 261,836 $ 41,566 $ 10,360
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
*Including net undistributed (overdistributed)
investment income of: $ 26,302 $ 2,028 $ 1,079 $ 225
- -------------------------------------------------------- ------------------ --------------- ------------------- --------------
</TABLE>
1997 Semiannual Report See accompanying notes 31
<PAGE>
Financial Highlights - Institutional Classes
<TABLE>
<CAPTION>
Net Asset Net Realized Total Dividends Dividends in
Value and Unrealized Income from from Net Excess of Net
Selected Per Share Data for Beginning Net Investment Gain (Loss) on Investment Investment Investment
the Year or Period Ended: of Period Income Investments Operations Income Income
----------- -------------- -------------- ------------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
Total Return Fund
Institutional Class
09/30/97(a) $ 10.27 $ 0.33(b) $ 0.46(b) $ 0.79 $ (0.33) $ 0.00
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
03/31/97 10.29 0.68 (0.02) 0.66 (0.66) (0.02)
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
03/31/96 10.02 0.81 0.29 1.10 (0.61) (0.10)
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
03/31/95 10.25 0.64 (0.24) 0.40 (0.56) (0.05)
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
03/31/94 10.91 0.68 (0.16) 0.52 (0.71) (0.15)
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
03/31/93 10.46 0.76 0.76 1.52 (0.76) 0.00
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
Administrative Class
09/30/97(a) 10.27 0.32(b) 0.46(b) 0.78 (0.32) 0.00
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
03/31/97 10.29 0.66(b) (0.02)(b) 0.64 (0.64) (0.02)
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
03/31/96 10.01 0.80 0.29 1.09 (0.60) (0.09)
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
09/07/94-03/31/95 10.00 0.31 0.06 0.37 (0.32) (0.03)
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
Total Return Fund II
Institutional Class
09/30/97(a) $ 9.85 $ 0.32(b) $ 0.39(b) $ 0.71 $ (0.32) $ 0.00
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
03/31/97 9.89 0.61 (0.02) 0.59 (0.62) (0.01)
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
11/01/95-03/31/96 10.21 0.25 (0.17) 0.08 (0.26) 0.00
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
10/31/95 9.39 0.69 0.76 1.45 (0.62) 0.00
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
10/31/94 10.38 0.51 (0.88) (0.37) (0.51) 0.00
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
10/31/93 9.99 0.61 0.74 1.35 (0.61) 0.00
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
12/30/91-10/31/92(b) 10.00 0.49 0.23 0.72 (0.49) 0.00
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
Administrative Class
09/30/97(a) 9.85 0.31(b) 0.39(b) 0.70 (0.31) 0.00
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
03/31/97 9.89 0.59 (0.02) 0.57 (0.60) (0.01)
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
11/01/95-03/31/96 10.22 0.24 (0.17) 0.07 (0.26) 0.00
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
11/30/94-10/31/95 9.34 0.56 0.88 1.44 (0.55) 0.00
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
Total Return Fund III
Institutional Class
09/30/97(a) $ 9.15 $ 0.29(b) $ 0.39(b) $ 0.68 $ (0.29) $ 0.00
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
03/31/97 9.13 0.55 0.05 0.60 (0.55) (0.02)
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
03/31/96 8.99 0.72 0.17 0.89 (0.54) (0.09)
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
03/31/95 9.18 0.59 (0.16) 0.43 (0.52) (0.02)
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
03/31/94 9.81 0.59 (0.03) 0.56 (0.66) (0.12)
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
03/31/93 10.31 0.64 0.75 1.39 (0.64) 0.00
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
Administrative Class
04/11/97-09/30/97(a) 9.12 0.26(b) 0.41(b) 0.67 (0.25) 0.00
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
Total Return Mortgage Fund
Institutional Class
07/31/97-09/30/97(a) $ 10.00 $ 0.11(b) $ 0.06(b) $ 0.17 $ (0.11) $ 0.00
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
Moderate Duration Fund
Institutional Class
09/30/97(a) $ 9.83 $ 0.31(b) $ 0.26(b) $ 0.57 $ (0.30) $ 0.00
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
12/31/96-03/31/97 10.00 0.15 (0.17) (0.02) (0.15) 0.00
- ----------------------------- ----------- -------------- -------------- ------------- ----------- -------------
</TABLE>
+ Annualized
(a) Unaudited
(b) Per share amounts based on average number of shares outstanding during the
period.
32 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Distributions Distributions
from Net in Excess of Tax Basis Net Asset
Selected Per Share Data for Realized Net Realized Return of Total Value End
the Year or Period Ended: Capital Gains Capital Gains Capital Distributions of Period
------------- ------------- --------- ------------- ----------
<S> <C> <C> <C> <C> <C>
Total Return Fund
Institutional Class
09/30/97(a) $ 0.00 $ 0.00 $ 0.00 $ (0.33) $ 10.73
- ------------------------- ------------- ------------- --------- ------------- ----------
03/31/97 0.00 0.00 0.00 (0.68) 10.27
- ------------------------- ------------- ------------- --------- ------------- ----------
03/31/96 (0.12) 0.00 0.00 (0.83) 10.29
- ------------------------- ------------- ------------- --------- ------------- ----------
03/31/95 0.00 0.00 (0.02) (0.63) 10.02
- ------------------------- ------------- ------------- --------- ------------- ----------
03/31/94 (0.30) (0.02) 0.00 (1.18) 10.25
- ------------------------- ------------- ------------- --------- ------------- ----------
03/31/93 (0.31) 0.00 0.00 (1.07) 10.91
- ------------------------- ------------- ------------- --------- ------------- ----------
Administrative Class
09/30/97(a) 0.00 0.00 0.00 (0.32) 10.73
- ------------------------- ------------- ------------- --------- ------------- ----------
03/31/97 0.00 0.00 0.00 (0.66) 10.27
- ------------------------- ------------- ------------- --------- ------------- ----------
03/31/96 (0.12) 0.00 0.00 (0.81) 10.29
- ------------------------- ------------- ------------- --------- ------------- ----------
09/07/94-03/31/95 0.00 0.00 (0.01) (0.36) 10.01
- ------------------------- ------------- ------------- --------- ------------- ----------
Total Return Fund II
Institutional Class
09/30/97(a) $ 0.00 $ 0.00 $ 0.00 $ (0.32) $ 10.24
- ------------------------- ------------- ------------- --------- ------------- ----------
03/31/97 0.00 0.00 0.00 (0.63) 9.85
- ------------------------- ------------- ------------- --------- ------------- ----------
11/01/95-03/31/96 (0.09) (0.05) 0.00 (0.40) 9.89
- ------------------------- ------------- ------------- --------- ------------- ----------
10/31/95 (0.01) 0.00 0.00 (0.63) 10.21
- ------------------------- ------------- ------------- --------- ------------- ----------
10/31/94 (0.05) 0.00 (0.06) (0.62) 9.39
- ------------------------- ------------- ------------- --------- ------------- ----------
10/31/93 (0.35) 0.00 0.00 (0.96) 10.38
- ------------------------- ------------- ------------- --------- ------------- ----------
12/30/91-10/31/92(b) (0.24) 0.00 0.00 (0.73) 9.99
- ------------------------- ------------- ------------- --------- ------------- ----------
Administrative Class
09/30/97(a) 0.00 0.00 0.00 (0.31) 10.24
- ------------------------- ------------- ------------- --------- ------------- ----------
03/31/97 0.00 0.00 0.00 (0.61) 9.85
- ------------------------- ------------- ------------- --------- ------------- ----------
11/01/95-03/31/96 (0.09) (0.05) 0.00 (0.40) 9.89
- ------------------------- ------------- ------------- --------- ------------- ----------
11/30/94-10/31/95 (0.01) 0.00 0.00 (0.56) 10.22
- ------------------------- ------------- ------------- --------- ------------- ----------
Total Return Fund III
Institutional Class
09/30/97(a) $ 0.00 $ 0.00 $ 0.00 $ (0.29) $ 9.54
- ------------------------- ------------- ------------- --------- ------------- ----------
03/31/97 0.00 (0.01) 0.00 (0.58) 9.15
- ------------------------- ------------- ------------- --------- ------------- ----------
03/31/96 (0.12) 0.00 0.00 (0.75) 9.13
- ------------------------- ------------- ------------- --------- ------------- ----------
03/31/95 0.00 0.00 (0.08) (0.62) 8.99
- ------------------------- ------------- ------------- --------- ------------- ----------
03/31/94 (0.20) (0.21) 0.00 (1.19) 9.18
- ------------------------- ------------- ------------- --------- ------------- ----------
03/31/93 (1.25) 0.00 0.00 (1.89) 9.81
- ------------------------- ------------- ------------- --------- ------------- ----------
Administrative Class
04/11/97-09/30/97(a) 0.00 0.00 0.00 (0.25) 9.54
- ------------------------- ------------- ------------- --------- ------------- ----------
Total Return Mortgage Fund
Institutional Class
07/31/97-09/30/97(a) $ 0.00 $ 0.00 $ 0.00 $ (0.11) $ 10.06
- ------------------------- ------------- ------------- --------- ------------- ----------
Moderate Duration Fund
Institutional Class
09/30/97(a) $ 0.00 $ 0.00 $ 0.00 $ (0.30) $ 10.10
- ------------------------- ------------- ------------- --------- ------------- ----------
12/31/96-03/31/97 0.00 0.00 0.00 (0.15) 9.83
- ------------------------- ------------- ------------- --------- ------------- ----------
<CAPTION>
Ratio of Net
Ratio of Investment
Expenses to Income to
Selected Per Share Data for Net Assets End Average Net Average Net Portfolio
the Year or Period Ended: Total Return of Period(000s) Assets Assets Turnover Rate
------------ --------------- ----------- ------------ -------------
<S> <C> <C> <C> <C> <C>
Total Return Fund
Institutional Class
09/30/97(a) 7.77% $14,126,441 0.43%+ 6.22%+ 85%
- ------------------------- ------------ --------------- ----------- ------------ -------------
03/31/97 6.60 12,528,536 0.43 6.60 173
- ------------------------- ------------ --------------- ----------- ------------ -------------
03/31/96 11.14 10,247,605 0.42 6.85 221
- ------------------------- ------------ --------------- ----------- ------------ -------------
03/31/95 4.22 7,239,735 0.41 6.72 98
- ------------------------- ------------ --------------- ----------- ------------ -------------
03/31/94 4.55 5,008,160 0.41 6.27 177
- ------------------------- ------------ --------------- ----------- ------------ -------------
03/31/93 15.29 3,155,441 0.43 7.07 90
- ------------------------- ------------ --------------- ----------- ------------ -------------
Administrative Class
09/30/97(a) 7.63 228,074 0.68+ 5.96+ 85
- ------------------------- ------------ --------------- ----------- ------------ -------------
03/31/97 6.34 151,194 0.68 6.35 173
- ------------------------- ------------ --------------- ----------- ------------ -------------
03/31/96 10.99 104,618 0.68 6.64 221
- ------------------------- ------------ --------------- ----------- ------------ -------------
09/07/94-03/31/95 3.76 9,037 0.66+ 6.54+ 98
- ------------------------- ------------ --------------- ----------- ------------ -------------
Total Return Fund II
Institutional Class
09/30/97(a) 7.27% $ 388,962 0.51%+ 6.31%+ 178%
- ------------------------- ------------ --------------- ----------- ------------ -------------
03/31/97 6.15 478,451 0.50 6.38 293
- ------------------------- ------------ --------------- ----------- ------------ -------------
11/01/95-03/31/96 0.78 455,583 0.51+ 6.36+ 73
- ------------------------- ------------ --------------- ----------- ------------ -------------
10/31/95 15.96 442,091 0.50 6.47 41
- ------------------------- ------------ --------------- ----------- ------------ -------------
10/31/94 (3.58) 357,900 0.50 5.22 99
- ------------------------- ------------ --------------- ----------- ------------ -------------
10/31/93 13.79 371,260 0.50 5.38 50
- ------------------------- ------------ --------------- ----------- ------------ -------------
12/30/91-10/31/92(b) 7.52 287,113 0.50+ 5.83+ 134
- ------------------------- ------------ --------------- ----------- ------------ -------------
Administrative Class
09/30/97(a) 7.14 9,030 0.76+ 6.03+ 178
- ------------------------- ------------ --------------- ----------- ------------ -------------
03/31/97 5.88 5,304 0.75 6.13 293
- ------------------------- ------------ --------------- ----------- ------------ -------------
11/01/95-03/31/96 0.57 3,320 0.76+ 6.06+ 73
- ------------------------- ------------ --------------- ----------- ------------ -------------
11/30/94-10/31/95 15.92 3,163 0.76+ 6.22+ 41
- ------------------------- ------------ --------------- ----------- ------------ -------------
Total Return Fund III
Institutional Class
09/30/97(a) 7.49% $ 293,006 0.50%+ 6.10%+ 84%
- ------------------------- ------------ --------------- ----------- ------------ -------------
03/31/97 6.76 193,297 0.51 6.21 90
- ------------------------- ------------ --------------- ----------- ------------ -------------
03/31/96 10.06 142,223 0.50 6.82 177
- ------------------------- ------------ --------------- ----------- ------------ -------------
03/31/95 4.92 99,497 0.50 6.95 146
- ------------------------- ------------ --------------- ----------- ------------ -------------
03/31/94 5.64 97,522 0.50 6.00 95
- ------------------------- ------------ --------------- ----------- ------------ -------------
03/31/93 14.47 65,349 0.51 6.06 161
- ------------------------- ------------ --------------- ----------- ------------ -------------
Administrative Class
04/11/97-09/30/97(a) 5.56 127 0.75+ 5.84+ 84
- ------------------------- ------------ --------------- ----------- ------------ -------------
Total Return Mortgage Fund
Institutional Class
07/31/97-09/30/97(a) 1.69% $ 3,371 0.50%+ 6.71%+ 397%
- ------------------------- ------------ --------------- ----------- ------------ -------------
Moderate Duration Fund
Institutional Class
09/30/97(a) 5.91% $ 72,844 0.45%+ 6.21%+ 64%
- ------------------------- ------------ --------------- ----------- ------------ -------------
12/31/96-03/31/97 (0.25) 13,458 0.44+ 6.01+ 49
- ------------------------- ------------ --------------- ----------- ------------ -------------
</TABLE>
1997 Semiannual Report See accompanying notes 33
<PAGE>
Financial Highlights - Institutional Classes(Cont.)
<TABLE>
<CAPTION>
Net Asset Net Realized Total Dividends Dividends in
Value and Unrealized Income from from Net Excess of Net
Selected Per Share Data for the Beginning Net Investment Gain (Loss) on Investment Investment Investment
Year or Period Ended: of Period Income Investments Operations Income Income
-------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Low Duration Fund
Institutional Class
09/30/97(a) $ 9.98 $ 0.31(b) $ 0.22(b) $ 0.53 $ (0.31) $ 0.00
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/97 9.95 0.64 0.03 0.67 (0.63) (0.01)
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/96 9.76 0.66 0.21 0.87 (0.68) 0.00
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/95 10.04 0.65 (0.30) 0.35 (0.54) 0.00
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/94 10.30 0.62 (0.16) 0.46 (0.64) (0.03)
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/93 10.20 0.75 0.22 0.97 (0.74) 0.00
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
Administrative Class
09/30/97(a) 9.98 0.30(b) 0.22(b) 0.52 (0.30) 0.00
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/97 9.95 0.62 0.03 0.65 (0.60) (0.02)
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/96 9.76 0.63 0.21 0.84 (0.65) 0.00
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
12/31/94-03/31/95 9.67 0.18 0.07 0.25 (0.14) 0.00
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
Low Duration Fund II
Institutional Class
09/30/97(a) $ 9.81 $ 0.30(b) $ 0.17(b) $ 0.47 $ (0.30) $ 0.00
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/97 9.82 0.62 (0.03) 0.59 (0.58) (0.02)
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/96 9.77 0.66 0.04 0.70 (0.60) (0.03)
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/95 9.94 0.62 (0.16) 0.46 (0.58) (0.03)
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/94 10.25 0.60 (0.28) 0.32 (0.58) 0.00
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/93 10.04 0.63 0.25 0.88 (0.64) 0.00
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
Low Duration Fund III
Institutional Class
09/30/97(a) $ 9.91 $ 0.30(b) $ 0.15(b) $ 0.45 $ (0.30) $ 0.00
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
12/31/96-03/31/97 10.00 0.15 (0.09) 0.06 (0.15) 0.00
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
Low Duration Mortgage Fund
Institutional Class
07/31/97-09/30/97(a) $ 10.00 $ 0.09(b) $ 0.15(b) $ 0.24 $ (0.11) $ 0.00
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
Short-Term Fund
Institutional Class
09/30/97(a) $ 10.00 $ 0.31(b) $ 0.08(b) $ 0.39 $ (0.31) $ 0.00
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/97 9.92 0.61 0.08 0.69 (0.59) (0.02)
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/96 9.79 0.69 0.12 0.81 (0.65) (0.03)
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/95 9.92 0.56 (0.13) 0.43 (0.55) (0.01)
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/94 10.03 0.48 (0.12) 0.36 (0.47) 0.00
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/93 10.01 0.37 0.02 0.39 (0.37) 0.00
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
Administrative Class
09/30/97(a) 10.00 0.30(b) 0.07(b) 0.37 (0.29) 0.00
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/97 9.92 0.58 0.08 0.66 (0.57) (0.01)
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
02/01/96-03/31/96 9.98 0.11 (0.07) 0.04 (0.10) 0.00
- -------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
</TABLE>
+ Annualized
(a) Unaudited
(b) Per share amounts based on average number of shares outstanding during the
period.
34 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Distributions Distributions
from Net in Excess of Tax Basis Net Asset
Selected Per Share Data for the Realized Net Realized Return of Total Value End
Year or Period Ended: Capital Gains Capital Gains Capital Distributions of Period
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Low Duration Fund
Institutional Class
09/30/97(a) $ 0.00 $ 0.00 $ 0.00 $ (0.31) $ 10.20
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/97 0.00 0.00 0.00 (0.64) 9.98
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/96 0.00 0.00 0.00 (0.68) 9.95
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/95 0.00 0.00 (0.09) (0.63) 9.76
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/94 (0.05) 0.00 0.00 (0.72) 10.04
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/93 (0.13) 0.00 0.00 (0.87) 10.30
- -------------------------------- -------------- -------------- -------------- -------------- --------------
Administrative Class
09/30/97(a) 0.00 0.00 0.00 (0.30) 10.20
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/97 0.00 0.00 0.00 (0.62) 9.98
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/96 0.00 0.00 0.00 (0.65) 9.95
- -------------------------------- -------------- -------------- -------------- -------------- --------------
12/31/94-03/31/95 0.00 0.00 (0.02) (0.16) 9.76
- -------------------------------- -------------- -------------- -------------- -------------- --------------
Low Duration Fund II
Institutional Class
09/30/97(a) $ 0.00 $ 0.00 $ 0.00 $ (0.30) $ 9.98
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/97 0.00 0.00 0.00 (0.60) 9.81
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/96 0.00 0.00 (0.02) (0.65) 9.82
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/95 0.00 0.00 (0.02) (0.63) 9.77
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/94 (0.05) 0.00 0.00 (0.63) 9.94
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/93 (0.03) 0.00 0.00 (0.67) 10.25
- -------------------------------- -------------- -------------- -------------- -------------- --------------
Low Duration Fund III
Institutional Class
09/30/97(a) $ 0.00 $ 0.00 $ 0.00 $ (0.30) $ 10.06
- -------------------------------- -------------- -------------- -------------- -------------- --------------
12/31/96-03/31/97 0.00 0.00 0.00 (0.15) 9.91
- -------------------------------- -------------- -------------- -------------- -------------- --------------
Low Duration Mortgage Fund
Institutional Class
07/31/97-09/30/97(a) $ 0.00 $ 0.00 $ 0.00 $ (0.11) $ 10.13
- -------------------------------- -------------- -------------- -------------- -------------- --------------
Short-Term Fund
Institutional Class
09/30/97(a) $ 0.00 $ 0.00 $ 0.00 $ (0.31) $ 10.08
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/97 0.00 0.00 0.00 (0.61) 10.00
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/96 0.00 0.00 0.00 (0.68) 9.92
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/95 0.00 0.00 0.00 (0.56) 9.79
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/94 0.00 0.00 0.00 (0.47) 9.92
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/93 0.00 0.00 0.00 (0.37) 10.03
- -------------------------------- -------------- -------------- -------------- -------------- --------------
Administrative Class
09/30/97(a) 10.00 0.00 0.00 0.00 (0.29) 10.08
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/97 0.00 0.00 0.00 (0.58) 10.00
- -------------------------------- -------------- -------------- -------------- -------------- --------------
02/01/96-03/31/96 0.00 0.00 0.00 (0.10) 9.92
- -------------------------------- -------------- -------------- -------------- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
Ratio of Net
Ratio of Investment
Expenses to Income to
Selected Per Share Data for the Net Assets End Average Net Average Net Portfolio
Year or Period Ended: Total Return of Period(000s) Assets Assets Turnover Rate
-------------- --------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Low Duration Fund
Institutional Class
09/30/97(a) 5.41% $2,797,292 0.43%+ 6.19%+ 132%
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/97 6.97 2,797,001 0.43 6.46 240
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/96 9.13 2,677,574 0.42 6.88 209
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/95 3.60 2,332,032 0.41 6.46 77
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/94 4.56 2,298,255 0.43 6.05 43
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/93 9.91 1,403,594 0.45 7.21 68
- -------------------------------- -------------- -------------- -------------- -------------- --------------
Administrative Class
09/30/97(a) 5.28 26,266 0.68+ 5.94+ 132
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/97 6.71 23,564 0.68 6.21 240
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/96 8.83 2,536 0.69 6.73 209
- -------------------------------- -------------- -------------- -------------- -------------- --------------
12/31/94-03/31/95 2.53 771 0.66+ 6.93+ 77
- -------------------------------- -------------- -------------- -------------- -------------- --------------
Low Duration Fund II
Institutional Class
09/30/97(a) 4.72% $ 326,740 0.50%+ 6.00%+ 81%
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/97 6.33 339,375 0.51 6.31 237
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/96 7.30 253,299 0.48 6.61 225
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/95 4.80 170,866 0.47 6.35 102
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/94 3.15 141,411 0.50 5.73 54
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/93 8.95 101,025 0.50 6.16 95
- -------------------------------- -------------- -------------- -------------- -------------- --------------
Low Duration Fund III
Institutional Class
09/30/97(a) 4.61% $ 12,321 0.51%+ 6.01%+ 122%
- -------------------------------- -------------- -------------- -------------- -------------- --------------
12/31/96-03/31/97 0.58 10,056 0.49+ 6.00+ 155
- -------------------------------- -------------- -------------- -------------- -------------- --------------
Low Duration Mortgage Fund
Institutional Class
07/31/97-09/30/97(a) 2.23% $ 3,374 0.50%+ 5.70%+ 1,199%
- -------------------------------- -------------- -------------- -------------- -------------- --------------
Short-Term Fund
Institutional Class
09/30/97(a) 3.91% $ 172,603 0.45%+ 6.13%+ 24%
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/97 7.12 156,515 0.47 6.12 77
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/96 8.49 101,797 0.58 6.86 215
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/95 4.46 90,114 0.50 5.67 79
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/94 3.66 73,176 0.50 4.87 46
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/93 3.94 46,905 0.50 3.67 55
- -------------------------------- -------------- -------------- -------------- -------------- --------------
Administrative Class
09/30/97(a) 3.79 4,678 0.70+ 5.92+ 24
- -------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/97 6.86 4,513 0.72 5.87 77
- -------------------------------- -------------- -------------- -------------- -------------- --------------
02/01/96-03/31/96 0.41 3,999 0.52+ 4.44+ 215
- -------------------------------- -------------- -------------- -------------- -------------- --------------
</TABLE>
1997 Semiannual Report See accompanying notes 35
<PAGE>
Financial Highlights - Institutional Classes (Cont.)
<TABLE>
<CAPTION>
Net Asset Net Realized Total Dividends Dividends in
Value and Unrealized Income from from Net Excess of Net
Selected Per Share Data for the Beginning Net Investment Gain (Loss) on Investment Investment Investment
Year or Period Ended: of Period Income Investments Operations Income Income
-------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Long-Term U.S. Government Fund
Institutional Class
09/30/97(a) $ 9.39 $ 0.31(b) $ 0.75(b) $ 1.06 $ (0.31) $ 0.00
- ------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/97 9.96 0.79 (0.35) 0.44 (0.68) 0.00
- ------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/96 9.85 0.83 0.66 1.49 (0.68) (0.04)
- ------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/95 9.96 0.60 (0.09) 0.51 (0.60) (0.02)
- ------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/94 11.36 0.62 (0.06) 0.56 (1.05) (0.04)
- ------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/93 10.82 0.70 1.66 2.36 (0.70) 0.00
- ------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
Administrative Class
09/23/97-09/30/97(a) 10.17 0.01(b) (0.03)(b) (0.02) (0.01) 0.00
- ------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
Real Return Bond Fund
Institutional Class
09/30/97(a) $ 9.93 $ 0.24(b) $ 0.02(b) $ 0.26 $ (0.24) $ 0.00
- ------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
01/29/97-03/31/97 9.92 0.11 (0.02) 0.09 (0.08) 0.00
- ------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
Foreign Bond Fund
Institutional Class
09/30/97(a) $ 10.41 $ 0.23(b) $ 0.48(b) $ 0.71 $ (0.23) $ 0.00
- ------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/97 10.50 0.80 1.00 1.80 (0.40) 0.00
- ------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/96 9.38 0.96 1.03 1.99 (0.34) (0.25)
- ------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/95 10.18 0.38 (0.57) (0.19) 0.00 0.00
- ------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/94 10.34 0.55 0.27 0.82 (0.55) 0.00
- ------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
12/03/92-03/31/93 10.00 0.16 0.34 0.50 (0.16) 0.00
- ------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
Administrative Class
09/30/97(a) 10.41 0.22(b) 0.47(b) 0.69 (0.21) 0.00
- ------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
01/28/97-03/31/97 10.54 0.59 (0.67) (0.08) (0.05) 0.00
- ------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
Global Bond Fund
Institutional Class
09/30/97(a) $ 9.86 $ 0.24(b) $ 0.23(b) $ 0.47 $ (0.23) $ 0.00
- ------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/97 10.05 0.70 (0.01) 0.69 (0.44) 0.00
- ------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/96 9.87 0.45 0.72 1.17 (0.61) 0.00
- ------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
03/31/95 9.85 0.69 (0.14) 0.55 (0.29) (0.24)
- ------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
11/23/93-03/31/94 10.00 0.16 (0.15) 0.01 (0.16) 0.00
- ------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
Administrative Class
09/30/97(a) 9.86 0.22(b) 0.24(b) 0.46 (0.22) 0.00
- ------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
08/01/96-03/31/97 10.28 0.51 (0.23) 0.28 (0.26) 0.00
- ------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
Emerging Markets Bond Fund
Institutional Class
07/31/97-09/30/97(a) $ 10.00 $ 0.11(b) $ 0.04(b) $ 0.15 $ (0.11) $ 0.00
- ------------------------------- -------------- -------------- -------------- -------------- -------------- --------------
</TABLE>
+ Annualized
(a) Unaudited
(b) Per share amounts based on average number of shares outstanding during the
period.
36 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Distributions Distributions
from Net in Excess of Tax Basis Net Asset
Selected Per Share Data for the Realized Net Realized Return of Total Value End
Year or Period Ended: Capital Gains Capital Gains Capital Distributions of Period
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Long-Term U.S. Government Fund
Institutional Class
09/30/97(a) $ 0.00 $ 0.00 $ 0.00 $ (0.31) $ 10.14
- ------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/97 0.00 (0.33) 0.00 (1.01) 9.39
- ------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/96 (0.50) (0.16) 0.00 (1.38) 9.96
- ------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/95 0.00 0.00 0.00 (0.62) 9.85
- ------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/94 (0.70) (0.17) 0.00 (1.96) 9.96
- ------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/93 (1.12) 0.00 0.00 (1.82) 11.36
- ------------------------------- -------------- -------------- -------------- -------------- --------------
Administrative Class
09/23/97-09/30/97(a) 0.00 0.00 0.00 (0.01) 10.14
- ------------------------------- -------------- -------------- -------------- -------------- --------------
Real Return Bond Fund
Institutional Class
09/30/97(a) $ 0.00 $ 0.00 $ 0.00 $ (0.24) $ 9.95
- ------------------------------- -------------- -------------- -------------- -------------- --------------
01/29/97-03/31/97 0.00 0.00 0.00 (0.08) 9.93
- ------------------------------- -------------- -------------- -------------- -------------- --------------
Foreign Bond Fund
Institutional Class
09/30/97(a) $ 0.00 $ 0.00 $ 0.00 $ (0.23) $ 10.89
- ------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/97 (1.49) 0.00 0.00 (1.89) 10.41
- ------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/96 (0.25) (0.03) 0.00 (0.87) 10.50
- ------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/95 0.00 0.00 (0.61) (0.61) 9.38
- ------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/94 (0.06) (0.37) 0.00 (0.98) 10.18
- ------------------------------- -------------- -------------- -------------- -------------- --------------
12/03/92-03/31/93 0.00 0.00 0.00 (0.16) 10.34
- ------------------------------- -------------- -------------- -------------- -------------- --------------
Administrative Class
09/30/97(a) 0.00 0.00 0.00 (0.21) 10.89
- ------------------------------- -------------- -------------- -------------- -------------- --------------
01/28/97-03/31/97 0.00 0.00 0.00 (0.05) 10.41
- ------------------------------- -------------- -------------- -------------- -------------- --------------
Global Bond Fund
Institutional Class
09/30/97(a) $ 0.00 $ 0.00 $ 0.00 $ (0.23) $ 10.10
- ------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/97 (0.44) 0.00 0.00 (0.88) 9.86
- ------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/96 (0.21) (0.17) 0.00 (0.99) 10.05
- ------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/95 0.00 0.00 0.00 (0.53) 9.87
- ------------------------------- -------------- -------------- -------------- -------------- --------------
11/23/93-03/31/94 0.00 0.00 0.00 (0.16) 9.85
- ------------------------------- -------------- -------------- -------------- -------------- --------------
Administrative Class
09/30/97(a) 0.00 0.00 0.00 (0.22) 10.10
- ------------------------------- -------------- -------------- -------------- -------------- --------------
08/01/96-03/31/97 (0.44) 0.00 0.00 (0.70) 9.86
- ------------------------------- -------------- -------------- -------------- -------------- --------------
Emerging Markets Bond Fund
Institutional Class
07/31/97-09/30/97(a) $ 0.00 $ 0.00 $ 0.00 $ (0.11) $ 10.04
- ------------------------------- -------------- -------------- -------------- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
Ratio of Net
Ratio of Investment
Expenses to Income to
Selected Per Share Data for the Net Assets End Average Net Average Net Portfolio
Year or Period Ended: Total Return of Period(000s) Assets Assets Turnover Rate
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Long-Term U.S. Government Fund
Institutional Class
09/30/97(a) 11.40% $ 34,856 0.50%+ 6.26%+ 150%
- ------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/97 4.48 19,995 0.63 7.63 402
- ------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/96 14.83 32,511 0.56 6.80 238
- ------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/95 5.50 32,349 0.50 6.62 89
- ------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/94 4.13 25,978 0.50 5.37 98
- ------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/93 23.42 22,946 0.50 6.16 320
- ------------------------------- -------------- -------------- -------------- -------------- --------------
Administrative Class
09/23/97-09/30/97(a) (0.18) 3,322 0.75+ 5.69+ 150
- ------------------------------- -------------- -------------- -------------- -------------- --------------
Real Return Bond Fund
Institutional Class
09/30/97(a) 2.66% $ 6,073 0.51%+ 4.85%+ 341%
- ------------------------------- -------------- -------------- -------------- -------------- --------------
01/29/97-03/31/97 0.09 5,638 0.51+ 6.54+ 160
- ------------------------------- -------------- -------------- -------------- -------------- --------------
Foreign Bond Fund
Institutional Class
09/30/97(a) 6.88% $312,524 0.50%+ 4.39%+ 64%
- ------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/97 17.69 234,880 0.50 7.88 984
- ------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/96 21.80 258,493 0.52 5.83 1,234
- ------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/95 (1.85) 232,700 0.47 6.44 299
- ------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/94 7.79 498,521 0.54 5.12 260
- ------------------------------- -------------- -------------- -------------- -------------- --------------
12/03/92-03/31/93 16.23+ 178,895 0.65+ 4.97+ 123
- ------------------------------- -------------- -------------- -------------- -------------- --------------
Administrative Class
09/30/97(a) 6.73 239 0.75+ 4.14+ 64
- ------------------------------- -------------- -------------- -------------- -------------- --------------
01/28/97-03/31/97 (0.72) 30 0.79+ 7.63+ 984
- ------------------------------- -------------- -------------- -------------- -------------- --------------
Global Bond Fund
Institutional Class
09/30/97(a) 4.85% $269,620 0.55%+ 4.73%+ 119%
- ------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/97 6.78 215,631 0.56 7.51 911
- ------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/96 12.04 133,833 0.58 5.88 1,083
- ------------------------------- -------------- -------------- -------------- -------------- --------------
03/31/95 10.35 76,476 0.64 5.59 461
- ------------------------------- -------------- -------------- -------------- -------------- --------------
11/23/93-03/31/94 0.08 40,485 0.50+ 4.55+ 132
- ------------------------------- -------------- -------------- -------------- -------------- --------------
Administrative Class
09/30/97(a) 4.70 576 0.80+ 4.41+ 119
- ------------------------------- -------------- -------------- -------------- -------------- --------------
08/01/96-03/31/97 2.97 346 0.78+ 5.66+ 911
- ------------------------------- -------------- -------------- -------------- -------------- --------------
Emerging Markets Bond Fund
Institutional Class
07/31/97-09/30/97(a) 1.56% $ 3,453 0.85%+ 7.12%+ 312%
- ------------------------------- -------------- -------------- -------------- -------------- --------------
</TABLE>
1997 Semiannual Report See accompanying notes 37
<PAGE>
Financial Highlights - Institutional Classes(Cont.)
<TABLE>
<CAPTION>
Net Asset Net Realized Total Dividends Dividends in
Value and Unrealized Income from from Net Excess of Net
Selected Per Share Data for Beginning Net Investment Gain(Loss) on Investment Investment Investment
the Year or Period Ended: of Period Income Investments Operations Income Income
--------- -------------- -------------- ----------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
High Yield Fund
Institutional Class
09/30/97(a) $ 11.10 $ 0.51(b) $ 0.52(b) $ 1.03 $ (0.51) $ 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
03/31/97 10.94 0.92 0.34 1.26 (0.97) 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
03/31/96 10.42 1.04 0.54 1.58 (1.01) 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
03/31/95 10.52 0.99 (0.12) 0.87 (0.93) (0.02)
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
03/31/94 10.41 0.90 0.18 1.08 (0.90) 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
12/16/92-03/31/93 10.00 0.24 0.41 0.65 (0.24) 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
Administrative Class
09/30/97(a) 11.10 0.50(b) 0.51(b) 1.01 (0.49) 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
03/31/97 10.94 0.85(b) 0.38(b) 1.23 (0.94) 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
03/31/96 10.41 1.02(b) 0.54(b) 1.56 (0.98) 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
01/16/95-03/31/95 10.14 0.23 0.25 0.48 (0.21) 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
Money Market Fund
Institutional Class
09/30/97(a) $ 1.00 $ 0.03(b) $ 0.00(b) $ 0.03 $ (0.03) $ 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
03/31/97 1.00 0.05 0.00 0.05 (0.05) 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
11/01/95-03/31/96 1.00 0.02 0.00 0.02 (0.02) 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
10/31/95 1.00 0.06 0.00 0.06 (0.06) 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
10/31/94 1.00 0.03 0.00 0.03 (0.03) 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
10/31/93 1.00 0.03 0.00 0.03 (0.03) 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
10/31/92 1.00 0.04 0.00 0.04 (0.04) 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
Administrative Class
09/30/97(a) 1.00 0.03(b) 0.00(b) 0.03 (0.03) 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
03/31/97 1.00 0.05 0.00 0.05 (0.05) 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
11/01/95-03/31/96 1.00 0.02 0.00 0.02 (0.02) 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
01/24/95-10/31/95 1.00 0.05 0.00 0.05 (0.05) 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
StocksPLUS Fund
Institutional Class
09/30/97(a) $ 11.46 $ 1.16(b) $ 1.89(b) $ 3.05 $ (0.32) $ 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
03/31/97 11.16 1.27 0.82 2.09 (1.27) 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
03/31/96 10.48 0.91 2.48 3.39 (1.05) 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
03/31/95 9.52 1.03 0.69 1.72 (0.76) 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
05/14/93-03/31/94 10.00 0.34 0.10 0.44 (0.34) (0.01)
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
Administrative Class
09/30/97(a) 11.46 1.12(b) 1.89(b) 3.01 (0.30) 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
01/07/97-03/31/97 11.56 0.14 (0.09) 0.05 (0.15) 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
Strategic Balanced Fund
Institutional Class
09/30/97(a) $ 10.32 $ 0.83(b) $ 1.14(b) $ 1.97 $ (0.25) $ 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
06/28/96-03/31/97 10.00 0.85 0.31 1.16 (0.63) 0.00
- ----------------------------- --------- -------------- -------------- ----------- ---------- -------------
</TABLE>
+ Annualized
(a) Unaudited
(b) Per share amounts based on average number of shares outstanding during the
period.
38 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Distributions Distributions
from Net in Excess of Tax Basis Net Asset
Selected Per Share Data for Realized Net Realized Return of Total Value End
the Year or Period Ended: Capital Gains Capital Gains Capital Distributions of Period
------------- ------------- --------- ------------- ---------
<S> <C> <C> <C> <C> <C>
High Yield Fund
Institutional Class
09/30/97(a) $ 0.00 $ 0.00 $ 0.00 $ (0.51) $ 11.62
- --------------------------- ------------- ------------- --------- ------------- ---------
03/31/97 (0.13) 0.00 0.00 (1.10) 11.10
- --------------------------- ------------- ------------- --------- ------------- ---------
03/31/96 (0.05) 0.00 0.00 (1.06) 10.94
- --------------------------- ------------- ------------- --------- ------------- ---------
03/31/95 0.00 (0.02) 0.00 (0.97) 10.42
- --------------------------- ------------- ------------- --------- ------------- ---------
03/31/94 (0.07) 0.00 0.00 (0.97) 10.52
- --------------------------- ------------- ------------- --------- ------------- ---------
12/16/92-03/31/93 0.00 0.00 0.00 (0.24) 10.41
- --------------------------- ------------- ------------- --------- ------------- ---------
Administrative Class
09/30/97(a) 0.00 0.00 0.00 (0.49) 11.62
- --------------------------- ------------- ------------- --------- ------------- ---------
03/31/97 (0.13) 0.00 0.00 (1.07) 11.10
- --------------------------- ------------- ------------- --------- ------------- ---------
03/31/96 (0.05) 0.00 0.00 (1.03) 10.94
- --------------------------- ------------- ------------- --------- ------------- ---------
01/16/95-03/31/95 0.00 0.00 0.00 (0.21) 10.41
- --------------------------- ------------- ------------- --------- ------------- ---------
Money Market Fund
Institutional Class
09/30/97(a) $ 0.00 $ 0.00 $ 0.00 $ (0.03) $ 1.00
- --------------------------- ------------- ------------- --------- ------------- ---------
03/31/97 0.00 0.00 0.00 (0.05) 1.00
- --------------------------- ------------- ------------- --------- ------------- ---------
11/01/95-03/31/96 0.00 0.00 0.00 (0.02) 1.00
- --------------------------- ------------- ------------- --------- ------------- ---------
10/31/95 0.00 0.00 0.00 (0.06) 1.00
- --------------------------- ------------- ------------- --------- ------------- ---------
10/31/94 0.00 0.00 0.00 (0.03) 1.00
- --------------------------- ------------- ------------- --------- ------------- ---------
10/31/93 0.00 0.00 0.00 (0.03) 1.00
- --------------------------- ------------- ------------- --------- ------------- ---------
10/31/92 0.00 0.00 0.00 (0.04) 1.00
- --------------------------- ------------- ------------- --------- ------------- ---------
Administrative Class
09/30/97(a) 0.00 0.00 0.00 (0.03) 1.00
- --------------------------- ------------- ------------- --------- ------------- ---------
03/31/97 0.00 0.00 0.00 (0.05) 1.00
- --------------------------- ------------- ------------- --------- ------------- ---------
11/01/95-03/31/96 0.00 0.00 0.00 (0.02) 1.00
- --------------------------- ------------- ------------- --------- ------------- ---------
01/24/95-10/31/95 0.00 0.00 0.00 (0.05) 1.00
- --------------------------- ------------- ------------- --------- ------------- ---------
StocksPLUS Fund
Institutional Class
09/30/97(a) $ 0.00 $ 0.00 $ 0.00 $ (0.32) $ 14.19
- --------------------------- ------------- ------------- --------- ------------- ---------
03/31/97 (0.52) 0.00 0.00 (1.79) 11.46
- --------------------------- ------------- ------------- --------- ------------- ---------
03/31/96 (1.62) (0.04) 0.00 (2.71) 11.16
- --------------------------- ------------- ------------- --------- ------------- ---------
03/31/95 0.00 0.00 0.00 (0.76) 10.48
- --------------------------- ------------- ------------- --------- ------------- ---------
05/14/93-03/31/94 (0.10) (0.47) 0.00 (0.92) 9.52
- --------------------------- ------------- ------------- --------- ------------- ---------
Administrative Class
09/30/97(a) 0.00 0.00 0.00 (0.30) 14.17
- --------------------------- ------------- ------------- --------- ------------- ---------
01/07/97-03/31/97 0.00 0.00 0.00 (0.15) 11.46
- --------------------------- ------------- ------------- --------- ------------- ---------
Strategic Balanced Fund
Institutional Class
09/30/97(a) $ 0.00 $ 0.00 $ 0.00 $ (0.25) $ 12.04
- --------------------------- ------------- ------------- --------- ------------- ---------
06/28/96-03/31/97 (0.21) 0.00 0.00 (0.84) 10.32
- --------------------------- ------------- ------------- --------- ------------- ---------
<CAPTION>
Ratio of Net
Ratio of Investment
Expenses to Income to
Selected Per Share Data for Net Assets End Average Net Average Net Portfolio
the Year or Period Ended: Total Return of Period(000s) Assets Assets Turnover Rate
<S> <C> <C> <C> <C> <C>
High Yield Fund
Institutional Class
09/30/97(a) 9.40% $1,080,857 0.50%+ 8.94%+ 17%
- --------------------------- ------------ --------------- ----------- ------------ -------------
03/31/97 12.04 744,498 0.50 8.77 67
- --------------------------- ------------ --------------- ----------- ------------ -------------
03/31/96 15.70 536,983 0.47 9.28 66
- --------------------------- ------------ --------------- ----------- ------------ -------------
03/31/95 8.81 336,310 0.48 9.37 78
- --------------------------- ------------ --------------- ----------- ------------ -------------
03/31/94 10.65 219,976 0.50 8.40 112
- --------------------------- ------------ --------------- ----------- ------------ -------------
12/16/92-03/31/93 24.43+ 24,069 0.50+ 8.24+ 30
- --------------------------- ------------ --------------- ----------- ------------ -------------
Administrative Class
09/30/97(a) 9.27 23,565 0.75+ 8.76+ 17
- --------------------------- ------------ --------------- ----------- ------------ -------------
03/31/97 11.76 10,428 0.76 8.48 67
- --------------------------- ------------ --------------- ----------- ------------ -------------
03/31/96 15.54 1,007 0.80+ 9.16+ 66
- --------------------------- ------------ --------------- ----------- ------------ -------------
01/16/95-03/31/95 4.66 41 0.73+ 10.12+ 78
- --------------------------- ------------ --------------- ----------- ------------ -------------
Money Market Fund
Institutional Class
09/30/97(a) 2.66% $ 37,641 0.35%+ 5.28%+ N/A
- --------------------------- ------------ --------------- ----------- ------------ -------------
03/31/97 5.19 23,497 0.40 5.08 N/A
- --------------------------- ------------ --------------- ----------- ------------ -------------
11/01/95-03/31/96 2.58 25,935 0.33+ 5.44+ N/A
- --------------------------- ------------ --------------- ----------- ------------ -------------
10/31/95 5.67 7,741 0.40 5.53 N/A
- --------------------------- ------------ --------------- ----------- ------------ -------------
10/31/94 3.53 7,454 0.40 3.52 N/A
- --------------------------- ------------ --------------- ----------- ------------ -------------
10/31/93 2.83 5,836 0.40 2.78 N/A
- --------------------------- ------------ --------------- ----------- ------------ -------------
10/31/92 3.85 7,817 0.40 4.02 N/A
- --------------------------- ------------ --------------- ----------- ------------ -------------
Administrative Class
09/30/97(a) 2.48 645 0.60+ 5.13+ N/A
- --------------------------- ------------ --------------- ----------- ------------ -------------
03/31/97 4.94 12 0.66 4.83 N/A
- --------------------------- ------------ --------------- ----------- ------------ -------------
11/01/95-03/31/96 2.47 10 0.61+ 5.95+ N/A
- --------------------------- ------------ --------------- ----------- ------------ -------------
01/24/95-10/31/95 4.21 10 0.68+ 5.94+ N/A
- --------------------------- ------------ --------------- ----------- ------------ -------------
StocksPLUS Fund
Institutional Class
09/30/97(a) 26.68% $ 378,234 0.65%+ 17.21%+ 14%
- --------------------------- ------------ --------------- ----------- ------------ -------------
03/31/97 19.44 235,829 0.65 11.78 47
- --------------------------- ------------ --------------- ----------- ------------ -------------
03/31/96 34.07 151,869 0.70 15.23 102
- --------------------------- ------------ --------------- ----------- ------------ -------------
03/31/95 18.64 46,498 0.50 11.89 177
- --------------------------- ------------ --------------- ----------- ------------ -------------
05/14/93-03/31/94 1.55 14,330 0.50+ 4.00+ 33
- --------------------------- ------------ --------------- ----------- ------------ -------------
Administrative Class
09/30/97(a) 26.20 1,135 0.90+ 16.63+ 14
- --------------------------- ------------ --------------- ----------- ------------ -------------
01/07/97-03/31/97 0.34 682 0.95+ 4.83+ 47
- --------------------------- ------------ --------------- ----------- ------------ -------------
Strategic Balanced Fund
Institutional Class
09/30/97(a) 19.09% $ 41,566 0.65%+ 14.29%+ 9%
- --------------------------- ------------ --------------- ----------- ------------ -------------
06/28/96-03/31/97 11.83 10,360 0.90+ 9.72+ 95
- --------------------------- ------------ --------------- ----------- ------------ -------------
</TABLE>
1997 Semiannual Report See accompanying notes 39
<PAGE>
Financial Highlights - Retail Classes
<TABLE>
<CAPTION>
Net Asset Net Realized Total Dividends Dividends in
Value and Unrealized Income from from Net Excess of Net
Selected Per Share Data for the Beginning Net Investment Gain (Loss) on Investment Investment Investment
Year or Period Ended: of Period Income Investments Operations Income Income
---------- -------------- -------------- ----------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Total Return Fund
Class A
09/30/97(a) $ 10.27 $ 0.30(b) $ 0.46(b) $ 0.76 $ (0.30) $ 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
01/13/97-03/31/97 10.40 0.12 (0.12) 0.00 (0.13) 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
Class B
09/30/97(a) 10.27 0.26(b) 0.46(b) 0.72 (0.26) 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
01/13/97-03/31/97 10.40 0.11 (0.12) (0.01) (0.12) 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
Class C
09/30/97(a) 10.27 0.26(b) 0.46(b) 0.72 (0.26) 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
01/13/97-03/31/97 10.40 0.11 (0.12) (0.01) (0.12) 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
Low Duration Fund
Class A
09/30/97(a) $ 9.98 $ 0.29(b) $ 0.22(b) $ 0.51 $ (0.29) $ 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
01/13/97-03/31/97 10.02 0.12 (0.03) 0.09 (0.12) (0.01)
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
Class B
09/30/97(a) 9.98 0.25(b) 0.22(b) 0.47 (0.25) 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
01/13/97-03/31/97 10.02 0.10 (0.03) 0.07 (0.11) 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
Class C
09/30/97(a) 9.98 0.27(b) 0.21(b) 0.48 (0.26) 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
01/13/97-03/31/97 10.02 0.11 (0.03) 0.08 (0.11) (0.01)
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
Short-Term Fund
Class A
09/30/97(a) $ 10.00 $ 0.29(b) $ 0.08(b) $ 0.37 $ (0.29) $ 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
01/20/97-03/31/97 10.04 0.10 (0.03) 0.07 (0.10) (0.01)
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
Class B
09/30/97(a) 10.00 0.26(b) 0.08(b) 0.34 (0.26) 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
01/20/97-03/31/97 10.04 0.09 (0.03) 0.06 (0.10) 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
Class C
09/30/97(a) 10.00 0.27(b)(c) 0.08(b) 0.35 (0.27) 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
01/20/97-03/31/97 10.04 0.09 (0.03) 0.06 (0.10) 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
Long-Term U.S. Government Fund
Class A
09/30/97(a) $ 9.39 $ 0.29(b) $ 0.75(b) $ 1.04 $ (0.29) $ 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
01/20/97-03/31/97 9.67 0.32 (0.47) (0.15) (0.13) 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
Class B
09/30/97(a) 9.39 0.25(b) 0.75(b) 1.00 (0.25) 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
01/20/97-03/31/97 9.67 0.29 (0.47) (0.18) (0.10) 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
Class C
09/30/97(a) 9.39 0.25(b) 0.75(b) 1.00 (0.25) 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
01/20/97-03/31/97 9.67 0.29 (0.47) (0.18) (0.10) 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
Real Return Bond Fund
Class A
09/30/97(a) $ 9.93 $ 0.21(b) $ 0.02(b) $ 0.23 $ (0.21) $ 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
01/29/97-03/31/97 10.00 0.11(b) (0.10)(b) 0.01 (0.08) 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
Class B
09/30/97(a) 9.93 0.18(b) 0.02(b) 0.20 (0.18) 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
01/29/97-03/31/97 10.00 0.09 (0.10) (0.01) (0.06) 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
Class C
09/30/97(a) 9.93 0.19(b)(d) 0.02(b) 0.21 (0.19) 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
01/29/97-03/31/97 10.00 0.09 (0.10) (0.01) (0.06) 0.00
- -------------------------------- ---------- -------------- -------------- ----------- ---------- -------------
</TABLE>
+ Annualized
(a) Unaudited
(b) Per share amounts based on average number of shares outstanding during the
period.
(c) Reflects voluntary waiver of distribution fee of $5,771 (.02 per
share) by the Distributor.
(d) Reflects voluntary waiver of distribution fee of $586 (.01 per share) by
the Distributor.
40 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Distributions Distributions
from Net in Excess of Tax Basis Net Asset
Selected Per Share Data for the Realized Net Realized Return of Total Value End
Year or Period Ended: Capital Gains Capital Gains Capital Distributions of Period
------------- ------------- ----------- -------------- -----------
<S> <C> <C> <C> <C> <C>
Total Return Fund
Class A
09/30/97(a) $ 0.00 $ 0.00 $ 0.00 $ (0.30) $ 10.73
- ------------------------------ ------------ ------------ ------------ ------------ ------------
01/13/97-03/31/97 0.00 0.00 0.00 (0.13) 10.27
- ------------------------------ ------------ ------------ ------------ ------------ ------------
Class B
09/30/97(a) 0.00 0.00 0.00 (0.26) 10.73
- ------------------------------ ------------ ------------ ------------ ------------ ------------
01/13/97-03/31/97 0.00 0.00 0.00 (0.12) 10.27
- ------------------------------ ------------ ------------ ------------ ------------ ------------
Class C
09/30/97(a) 0.00 0.00 0.00 (0.26) 10.73
- ------------------------------ ------------ ------------ ------------ ------------ ------------
01/13/97-03/31/97 0.00 0.00 0.00 (0.12) 10.27
- ------------------------------ ------------ ------------ ------------ ------------ ------------
Low Duration Fund
Class A
09/30/97(a) $ 0.00 $ 0.00 $ 0.00 $ (0.29) $ 10.20
- ------------------------------ ------------ ------------ ------------ ------------ ------------
01/13/97-03/31/97 0.00 0.00 0.00 (0.13) 9.98
- ------------------------------ ------------ ------------ ------------ ------------ ------------
Class B
09/30/97(a) 0.00 0.00 0.00 (0.25) 10.20
- ------------------------------ ------------ ------------ ------------ ------------ ------------
01/13/97-03/31/97 0.00 0.00 0.00 (0.11) 9.98
- ------------------------------ ------------ ------------ ------------ ------------ ------------
Class C
09/30/97(a) 0.00 0.00 0.00 (0.26) 10.20
- ------------------------------ ------------ ------------ ------------ ------------ ------------
01/13/97-03/31/97 0.00 0.00 0.00 (0.12) 9.98
- ------------------------------ ------------ ------------ ------------ ------------ ------------
Short-Term Fund
Class A
09/30/97(a) $ 0.00 $ 0.00 $ 0.00 $ (0.29) $ 10.08
- ------------------------------ ------------ ------------ ------------ ------------ ------------
01/20/97-03/31/97 0.00 0.00 0.00 (0.11) 10.00
- ------------------------------ ------------ ------------ ------------ ------------ ------------
Class B
09/30/97(a) 0.00 0.00 0.00 (0.26) 10.08
- ------------------------------ ------------ ------------ ------------ ------------ ------------
01/20/97-03/31/97 0.00 0.00 0.00 (0.10) 10.00
- ------------------------------ ------------ ------------ ------------ ------------ ------------
Class C
09/30/97(a) 0.00 0.00 0.00 (0.27) 10.08
- ------------------------------ ------------ ------------ ------------ ------------ ------------
01/20/97-03/31/97 0.00 0.00 0.00 (0.10) 10.00
- ------------------------------ ------------ ------------ ------------ ------------ ------------
Long-Term U.S. Government Fund
Class A
09/30/97(a) $ 0.00 $ 0.00 $ 0.00 $ (0.29) $ 10.14
- ------------------------------ ------------ ------------ ------------ ------------ ------------
01/20/97-03/31/97 0.00 0.00 0.00 (0.13) 9.39
- ------------------------------ ------------ ------------ ------------ ------------ ------------
Class B
09/30/97(a) 0.00 0.00 0.00 (0.25) 10.14
- ------------------------------ ------------ ------------ ------------ ------------ ------------
01/20/97-03/31/97 0.00 0.00 0.00 (0.10) 9.39
- ------------------------------ ------------ ------------ ------------ ------------ ------------
Class C
09/30/97(a) 0.00 0.00 0.00 (0.25) 10.14
- ------------------------------ ------------ ------------ ------------ ------------ ------------
01/20/97-03/31/97 0.00 0.00 0.00 (0.10) 9.39
- ------------------------------ ------------ ------------ ------------ ------------ ------------
Real Return Bond Fund
Class A
09/30/97(a) $ 0.00 $ 0.00 $ 0.00 $ (0.21) $ 9.95
- ------------------------------ ------------ ------------ ------------ ------------ ------------
01/29/97-03/31/97 0.00 0.00 0.00 (0.08) 9.93
- ------------------------------ ------------ ------------ ------------ ------------ ------------
Class B
09/30/97(a) 0.00 0.00 0.00 (0.18) 9.95
- ------------------------------ ------------ ------------ ------------ ------------ ------------
01/29/97-03/31/97 0.00 0.00 0.00 (0.06) 9.93
- ------------------------------ ------------ ------------ ------------ ------------ ------------
Class C
09/30/97(a) 0.00 0.00 0.00 (0.19) 9.95
- ------------------------------ ------------ ------------ ------------ ------------ ------------
01/29/97-03/31/97 0.00 0.00 0.00 (0.06) 9.93
- ------------------------------ ------------ ------------ ------------ ------------ ------------
<CAPTION>
Ratio of Net
Ratio of Investment
Expenses to Income to
Selected Per Share Data for the Net Assets End Average Net Average Net Portfolio
Year or Period Ended: Total Return of Period (000s) Assets Assets Turnover Rate
------------ ---------------- ------------ ----------- -------------
<S> <C> <C> <C> <C> <C>
Total Return Fund
Class A
09/30/97(a) 7.52% $241,075 0.90%+ 5.68%+ 85%
- ----------------------------- ------------ ------------ ----------- ----------- -----------
01/13/97-03/31/97 0.02 115,742 0.91+ 6.08+ 173
- ----------------------------- ------------ ------------ ----------- ----------- -----------
Class B
09/30/97(a) 7.11 107,136 1.65+ 4.95+ 85
- ----------------------------- ------------ ------------ ----------- ----------- -----------
01/13/97-03/31/97 (0.10) 74,130 1.67+ 5.28+ 173
- ----------------------------- ------------ ------------ ----------- ----------- -----------
Class C
09/30/97(a) 7.12 342,949 1.65+ 5.00+ 85
- ----------------------------- ------------ ------------ ----------- ----------- -----------
01/13/97-03/31/97 (0.11) 329,104 1.67+ 5.32+ 173
- ----------------------------- ------------ ------------ ----------- ----------- -----------
Low Duration Fund
Class A
09/30/97(a) 5.17% $ 72,176 0.90%+ 5.66%+ 132%
- ----------------------------- ------------ ------------ ----------- ----------- -----------
01/13/97-03/31/97 0.85 59,348 0.91+ 5.84+ 240
- ----------------------------- ------------ ------------ ----------- ----------- -----------
Class B
09/30/97(a) 4.77 8,487 1.65+ 4.95+ 132
- ----------------------------- ------------ ------------ ----------- ----------- -----------
01/13/97-03/31/97 0.68 6,296 1.67+ 5.03+ 240
- ----------------------------- ------------ ------------ ----------- ----------- -----------
Class C
09/30/97(a) 4.91 59,625 1.40+ 5.32+ 132
- ----------------------------- ------------ ------------ ----------- ----------- -----------
01/13/97-03/31/97 0.75 63,606 1.42+ 5.36+ 240
- ----------------------------- ------------ ------------ ----------- ----------- -----------
Short-Term Fund
Class A
09/30/97(a) 3.71% $ 7,554 0.85%+ 5.57%+ 24%
- ----------------------------- ------------ ------------ ----------- ----------- -----------
01/20/97-03/31/97 0.66 2,533 0.86+ 5.07+ 77
- ----------------------------- ------------ ------------ ----------- ----------- -----------
Class B
09/30/97(a) 3.44 609 1.60+ 4.95+ 24
- ----------------------------- ------------ ------------ ----------- ----------- -----------
01/20/97-03/31/97 0.58 114 1.62+ 4.83+ 77
- ----------------------------- ------------ ------------ ----------- ----------- -----------
Class C
09/30/97(a) 3.56 3,721 1.15+(e) 5.31+(g) 24
- ----------------------------- ------------ ------------ ----------- ----------- -----------
01/20/97-03/31/97 0.63 1,359 1.14+ 4.78+ 77
- ----------------------------- ------------ ------------ ----------- ----------- -----------
Long-Term U.S. Government Fund
Class A
09/30/97(a) 11.19% $ 2,720 0.90%+ 5.78%+ 150%
- ----------------------------- ------------ ------------ ----------- ----------- -----------
01/20/97-03/31/97 (1.72) 1,204 1.12+ 6.91+ 402
- ----------------------------- ------------ ------------ ----------- ----------- -----------
Class B
09/30/97(a) 10.76 1,994 1.65+ 4.93+ 150
- ----------------------------- ------------ ------------ ----------- ----------- -----------
01/20/97-03/31/97 (1.92) 454 1.87+ 4.95+ 402
- ----------------------------- ------------ ------------ ----------- ----------- -----------
Class C
09/30/97(a) 10.77 1,499 1.65+ 4.93+ 150
- ----------------------------- ------------ ------------ ----------- ----------- -----------
01/20/97-03/31/97 (1.83) 275 1.88+ 5.52+ 402
- ----------------------------- ------------ ------------ ----------- ----------- -----------
Real Return Bond Fund
Class A
09/30/97(a) 2.33% $ 652 0.91%+ 4.20%+ 341%
- ----------------------------- ------------ ------------ ----------- ----------- -----------
01/29/97-03/31/97 0.15 1 0.90+ 6.14+ 160
- ----------------------------- ------------ ------------ ----------- ----------- -----------
Class B
09/30/97(a) 2.07 926 1.66+ 3.59+ 341
- ----------------------------- ------------ ------------ ----------- ----------- -----------
01/29/97-03/31/97 (0.08) 509 1.59+ 3.43+ 160
- ----------------------------- ------------ ------------ ----------- ----------- -----------
Class C
09/30/97(a) 2.17 508 1.41+(f) 3.85+(h) 341
- ----------------------------- ------------ ------------ ----------- ----------- -----------
01/29/97-03/31/97 (0.07) 148 1.62+ 5.13+ 160
- ----------------------------- ------------ ------------ ----------- ----------- -----------
</TABLE>
(e) The Ratio of Expenses to Average Net assets without the waiver would have
been 1.60%.
(f) The Ratio of Expenses to Average Net assets without the waiver
would have been 1.66%.
(g) The Ratio of Net Investment Income to Average Net
assets without the waiver would have been 4.86%.
(h) The Ratio of Net Investment Income to Average Net assets without the waiver
would have been 3.60%.
1997 Semiannual Report See accompanying notes 41
<PAGE>
Financial Highlights - Retail Classes (Cont.)
<TABLE>
<CAPTION>
Net Asset Net Realized Total
Value and Unrealized Income from
Beginning Net Investment Gain (Loss) Investment
Selected Per Share Data for the Year or Period Ended: of Period Income on Investments Operations
--------- -------------- -------------- -----------
<S> <C> <C> <C> <C>
Foreign Bond Fund
Class A
09/30/97(a) $ 10.41 $ 0.22(b) $ 0.47(b) $ 0.69
- ---------------------------------------------------------- --------- -------------- -------------- -----------
01/20/97-03/31/97 10.59 0.59 (0.72) (0.13)
- ---------------------------------------------------------- --------- -------------- -------------- -----------
Class B
09/30/97(a) 10.41 0.18(b) 0.47(b) 0.65
- ---------------------------------------------------------- --------- -------------- -------------- -----------
01/20/97-03/31/97 10.59 0.58 (0.72) (0.14)
- ---------------------------------------------------------- --------- -------------- -------------- -----------
Class C
09/30/97(a) 10.41 0.18(b) 0.46(b) 0.64
- ---------------------------------------------------------- --------- -------------- -------------- -----------
01/20/97-03/31/97 10.59 0.58 (0.72) (0.14)
- ---------------------------------------------------------- --------- -------------- -------------- -----------
Emerging Markets Bond Fund
Class A
07/31/97-09/30/97(a) $ 10.00 $ 0.11(b) $ 0.04(b) $ 0.15
- ---------------------------------------------------------- --------- -------------- -------------- -----------
Class B
07/31/97-09/30/97(a) 10.00 0.09(b) 0.04(b) 0.13
- ---------------------------------------------------------- --------- -------------- -------------- -----------
Class C
07/31/97-09/30/97(a) 10.00 0.09(b) 0.04(b) 0.13
- ---------------------------------------------------------- --------- -------------- -------------- -----------
High Yield Fund
Class A
09/30/97(a) $ 11.10 $ 0.48(b) $ 0.52(b) $ 1.00
- ---------------------------------------------------------- --------- -------------- -------------- -----------
01/13/97-03/31/97 11.18 0.17 (0.05) 0.12
- ---------------------------------------------------------- --------- -------------- -------------- -----------
Class B
09/30/97(a) 11.10 0.44(b) 0.52(b) 0.96
- ---------------------------------------------------------- --------- -------------- -------------- -----------
01/13/97-03/31/97 11.18 0.15 (0.05) 0.10
- ---------------------------------------------------------- --------- -------------- -------------- -----------
Class C
09/30/97(a) 11.10 0.44(b) 0.52(b) 0.96
- ---------------------------------------------------------- --------- -------------- -------------- -----------
01/13/97-03/31/97 11.18 0.15 (0.05) 0.10
- ---------------------------------------------------------- --------- -------------- -------------- -----------
Money Market Fund
Class A
09/30/97(a) $ 1.00 $ 0.03(b)(c) $ 0.00(b) $ 0.03
- ---------------------------------------------------------- --------- -------------- -------------- -----------
01/13/97-03/31/97 1.00 0.01 0.00 0.01
- ---------------------------------------------------------- --------- -------------- -------------- -----------
Class B
09/30/97(a) 1.00 0.02(b) 0.00(b) 0.02
- ---------------------------------------------------------- --------- -------------- -------------- -----------
01/13/97-03/31/97 1.00 0.01 0.00 0.01
- ---------------------------------------------------------- --------- -------------- -------------- -----------
Class C
09/30/97(a) 1.00 0.03(b)(d) 0.00(b) 0.03
- ---------------------------------------------------------- --------- -------------- -------------- -----------
01/13/97-03/31/97 1.00 0.01 0.00 0.01
- ---------------------------------------------------------- --------- -------------- -------------- -----------
StocksPLUS Fund
Class A
09/30/97(a) $ 11.46 $ 1.12(b) $ 1.89(b) $ 3.01
- ---------------------------------------------------------- --------- -------------- -------------- -----------
01/20/97-03/31/97 11.91 (0.10) (0.20) (0.30)
- ---------------------------------------------------------- --------- -------------- -------------- -----------
Class B
09/30/97(a) 11.44 1.08(b) 1.89(b) 2.97
- ---------------------------------------------------------- --------- -------------- -------------- -----------
01/20/97-03/31/97 11.91 (0.13) (0.20) (0.33)
- ---------------------------------------------------------- --------- -------------- -------------- -----------
Class C
09/30/97(a) 11.45 1.09(b)(e) 1.89(b) 2.98
- ---------------------------------------------------------- --------- -------------- -------------- -----------
01/20/97-03/31/97 11.91 (0.12)(b) (0.20)(b) (0.32)
- ---------------------------------------------------------- --------- -------------- -------------- -----------
<CAPTION>
Dividends Dividends in
from Net Excess of Net
Investment Investment
Selected Per Share Data for the Year or Period Ended: Income Income
---------- -------------
<S> <C> <C>
Foreign Bond Fund
Class A
09/30/97(a) $ (0.21) $ 0.00
- ---------------------------------------------------------- ---------- -------------
01/20/97-03/31/97 (0.05) 0.00
- ---------------------------------------------------------- ---------- -------------
Class B
09/30/97(a) (0.17) 0.00
- ---------------------------------------------------------- ---------- -------------
01/20/97-03/31/97 (0.04) 0.00
- ---------------------------------------------------------- ---------- -------------
Class C
09/30/97(a) (0.16) 0.00
- ---------------------------------------------------------- ---------- -------------
01/20/97-03/31/97 (0.04) 0.00
- ---------------------------------------------------------- ---------- -------------
Emerging Markets Bond Fund
Class A
07/31/97-09/30/97(a) $ (0.11) $ 0.00
- ---------------------------------------------------------- ---------- -------------
Class B
07/31/97-09/30/97(a) (0.09) 0.00
- ---------------------------------------------------------- ---------- -------------
Class C
07/31/97-09/30/97(a) (0.09) 0.00
- ---------------------------------------------------------- ---------- -------------
High Yield Fund
Class A
09/30/97(a) $ (0.48) $ 0.00
- ---------------------------------------------------------- ---------- -------------
01/13/97-03/31/97 (0.20) 0.00
- ---------------------------------------------------------- ---------- -------------
Class B
09/30/97(a) (0.44) 0.00
- ---------------------------------------------------------- ---------- -------------
01/13/97-03/31/97 (0.18) 0.00
- ---------------------------------------------------------- ---------- -------------
Class C
09/30/97(a) (0.44) 0.00
- ---------------------------------------------------------- ---------- -------------
01/13/97-03/31/97 (0.18) 0.00
- ---------------------------------------------------------- ---------- -------------
Money Market Fund
Class A
09/30/97(a) $ (0.03) $ 0.00
- ---------------------------------------------------------- ---------- -------------
01/13/97-03/31/97 (0.01) 0.00
- ---------------------------------------------------------- ---------- -------------
Class B
09/30/97(a) (0.02) 0.00
- ---------------------------------------------------------- ---------- -------------
01/13/97-03/31/97 (0.01) 0.00
- ---------------------------------------------------------- ---------- -------------
Class C
09/30/97(a) (0.03) 0.00
- ---------------------------------------------------------- ---------- -------------
01/13/97-03/31/97 (0.01) 0.00
- ---------------------------------------------------------- ---------- -------------
StocksPLUS Fund
Class A
09/30/97(a) $ (0.30) $ 0.00
- ---------------------------------------------------------- ---------- -------------
01/20/97-03/31/97 (0.15) 0.00
- ---------------------------------------------------------- ---------- -------------
Class B
09/30/97(a) (0.27) 0.00
- ---------------------------------------------------------- ---------- -------------
01/20/97-03/31/97 (0.14) 0.00
- ---------------------------------------------------------- ---------- -------------
Class C
09/30/97(a) (0.28) 0.00
- ---------------------------------------------------------- ---------- -------------
01/20/97-03/31/97 (0.14) 0.00
- ---------------------------------------------------------- ---------- -------------
</TABLE>
+ Annualized
(a) Unaudited
(b) Per share amounts based on average number of shares outstanding during the
period.
(c) Reflects voluntary waiver of distribution fee of $14,946(.00 per share) by
the Distributor.
(d) Reflects voluntary waiver of distribution fee of $30,556(.00 per share) by
the Distributor.
(e) Reflects voluntary waiver of distribution fee of $40,185(.02 per share)
by the Distributor.
42 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Distributions Distributions
from Net in Excess of
Realized Net Realized
Selected Per Share Data for the Year or Period Ended: Capital Gains Capital Gains
------------- -------------
<S> <C> <C>
Foreign Bond Fund
Class A
09/30/97(a) $ 0.00 $ 0.00
- ---------------------------------------------------------- ------------- -------------
01/20/97-03/31/97 0.00 0.00
- ---------------------------------------------------------- ------------- -------------
Class B
09/30/97(a) 0.00 0.00
- ---------------------------------------------------------- ------------- -------------
01/20/97-03/31/97 0.00 0.00
- ---------------------------------------------------------- ------------- -------------
Class C
09/30/97(a) 0.00 0.00
- ---------------------------------------------------------- ------------- -------------
01/20/97-03/31/97 0.00 0.00
- ---------------------------------------------------------- ------------- -------------
Emerging Markets Bond Fund
Class A
07/31/97-09/30/97(a) $ 0.00 $ 0.00
- ---------------------------------------------------------- ------------- -------------
Class B
07/31/97-09/30/97(a) 0.00 0.00
- ---------------------------------------------------------- ------------- -------------
Class C
07/31/97-09/30/97(a) 0.00 0.00
- ---------------------------------------------------------- ------------- -------------
High Yield Fund
Class A
09/30/97(a) $ 0.00 $ 0.00
- ---------------------------------------------------------- ------------- -------------
01/13/97-03/31/97 0.00 0.00
- ---------------------------------------------------------- ------------- -------------
Class B
09/30/97(a) 0.00 0.00
- ---------------------------------------------------------- ------------- -------------
01/13/97-03/31/97 0.00 0.00
- ---------------------------------------------------------- ------------- -------------
Class C
09/30/97(a) 0.00 0.00
- ---------------------------------------------------------- ------------- -------------
01/13/97-03/31/97 0.00 0.00
- ---------------------------------------------------------- ------------- -------------
Money Market Fund
Class A
09/30/97(a) $ 0.00 $ 0.00
- ---------------------------------------------------------- ------------- -------------
01/13/97-03/31/97 0.00 0.00
- ---------------------------------------------------------- ------------- -------------
Class B
09/30/97(a) 0.00 0.00
- ---------------------------------------------------------- ------------- -------------
01/13/97-03/31/97 0.00 0.00
- ---------------------------------------------------------- ------------- -------------
Class C
09/30/97(a) 0.00 0.00
- ---------------------------------------------------------- ------------- -------------
01/13/97-03/31/97 0.00 0.00
- ---------------------------------------------------------- ------------- -------------
StocksPLUS Fund
Class A
09/30/97(a) $ 0.00 $ 0.00
- ---------------------------------------------------------- ------------- -------------
01/20/97-03/31/97 0.00 0.00
- ---------------------------------------------------------- ------------- -------------
Class B
09/30/97(a) 0.00 0.00
- ---------------------------------------------------------- ------------- -------------
01/20/97-03/31/97 0.00 0.00
- ---------------------------------------------------------- ------------- -------------
Class C
09/30/97(a) 0.00 0.00
- ---------------------------------------------------------- ------------- -------------
01/20/97-03/31/97 0.00 0.00
- ---------------------------------------------------------- ------------- -------------
<CAPTION>
Tax Basis Net Asset
Return of Total Value End
Selected Per Share Data for the Year or Period Ended: Capital Distributions of Period Total Return
--------- ------------- --------- ------------
<S> <C> <C> <C> <C>
Foreign Bond Fund
Class A
09/30/97(a) $ 0.00 $ (0.21) $ 10.89 6.65%
- --------------------------------------------------------- --------- ------------- --------- ------------
01/20/97-03/31/97 0.00 (0.05) 10.41 (1.21)
- --------------------------------------------------------- --------- ------------- --------- ------------
Class B
09/30/97(a) 0.00 (0.17) 10.89 6.23
- --------------------------------------------------------- --------- ------------- --------- ------------
01/20/97-03/31/97 0.00 (0.04) 10.41 (1.34)
- --------------------------------------------------------- --------- ------------- --------- ------------
Class C
09/30/97(a) 0.00 (0.16) 10.89 6.23
- --------------------------------------------------------- --------- ------------- --------- ------------
01/20/97-03/31/97 0.00 (0.04) 10.41 (1.32)
- --------------------------------------------------------- --------- ------------- --------- ------------
Emerging Markets Bond Fund
Class A
07/31/97-09/30/97(a) $ 0.00 $ (0.11) $ 10.04 1.50%
- --------------------------------------------------------- --------- ------------- --------- ------------
Class B
07/31/97-09/30/97(a) 0.00 (0.09) 10.04 1.34
- --------------------------------------------------------- --------- ------------- --------- ------------
Class C
07/31/97-09/30/97(a) 0.00 (0.09) 10.04 1.35
- --------------------------------------------------------- --------- ------------- --------- ------------
High Yield Fund
Class A
09/30/97(a) $ 0.00 $ (0.48) $ 11.62 9.18%
- --------------------------------------------------------- --------- ------------- --------- ------------
01/13/97-03/31/97 0.00 (0.20) 11.10 1.06
- --------------------------------------------------------- --------- ------------- --------- ------------
Class B
09/30/97(a) 0.00 (0.44) 11.62 8.77
- --------------------------------------------------------- --------- ------------- --------- ------------
01/13/97-03/31/97 0.00 (0.18) 11.10 0.86
- --------------------------------------------------------- --------- ------------- --------- ------------
Class C
09/30/97(a) 0.00 (0.44) 11.62 8.78
- --------------------------------------------------------- --------- ------------- --------- ------------
01/13/97-03/31/97 0.00 (0.18) 11.10 0.88
- --------------------------------------------------------- --------- ------------- --------- ------------
Money Market Fund
Class A
09/30/97(a) $ 0.00 $ (0.03) $ 1.00 2.52%
- --------------------------------------------------------- --------- ------------- --------- ------------
01/13/97-03/31/97 0.00 (0.01) 1.00 1.01
- --------------------------------------------------------- --------- ------------- --------- ------------
Class B
09/30/97(a) 0.00 (0.02) 1.00 2.09
- --------------------------------------------------------- --------- ------------- --------- ------------
01/13/97-03/31/97 0.00 (0.01) 1.00 0.83
- --------------------------------------------------------- --------- ------------- --------- ------------
Class C
09/30/97(a) 0.00 (0.03) 1.00 2.52
- --------------------------------------------------------- --------- ------------- --------- ------------
01/13/97-03/31/97 0.00 (0.01) 1.00 1.02
- --------------------------------------------------------- --------- ------------- --------- ------------
StocksPLUS Fund
Class A
09/30/97(a) $ 0.00 $ (0.30) $ 14.17 26.38%
- --------------------------------------------------------- --------- ------------- --------- ------------
01/20/97-03/31/97 0.00 (0.15) 11.46 (2.59)
- --------------------------------------------------------- --------- ------------- --------- ------------
Class B
09/30/97(a) 0.00 (0.27) 14.14 26.01
- --------------------------------------------------------- --------- ------------- --------- ------------
01/20/97-03/31/97 0.00 (0.14) 11.44 (2.81)
- --------------------------------------------------------- --------- ------------- --------- ------------
Class C
09/30/97(a) 0.00 (0.28) 14.15 26.08
- --------------------------------------------------------- --------- ------------- --------- ------------
01/20/97-03/31/97 0.00 (0.14) 11.45 (2.71)
- --------------------------------------------------------- --------- ------------- --------- ------------
<CAPTION>
Ratio of net
Ratio of Investment
Expenses to Income to
Net Assets End Average Net Average Net Portfolio
Selected Per Share Data for the Year or Period Ended: of Period(000s) Assets Assets Turnover Rate
--------------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Foreign Bond Fund
Class A
09/30/97(a) $ 3,309 0.95%+ 4.12%+ 64%
- --------------------------------------------------------- --------------- ----------- ----------- -------------
01/20/97-03/31/97 704 0.97+ 4.95+ 984
- --------------------------------------------------------- --------------- ----------- ----------- -------------
Class B
09/30/97(a) 6,205 1.70+ 3.39+ 64
- --------------------------------------------------------- --------------- ----------- ----------- -------------
01/20/97-03/31/97 1,221 1.75+ 3.73+ 984
- --------------------------------------------------------- --------------- ----------- ----------- -------------
Class C
09/30/97(a) 9,572 1.70+ 3.33+ 64
- --------------------------------------------------------- --------------- ----------- ----------- -------------
01/20/97-03/31/97 1,788 1.76+ 4.09+ 984
- --------------------------------------------------------- --------------- ----------- ----------- -------------
Emerging Markets Bond Fund
Class A
07/31/97-09/30/97(a) $ 144 1.25%+ 5.81%+ 312%
- --------------------------------------------------------- --------------- ----------- ----------- -------------
Class B
07/31/97-09/30/97(a) 58 2.00+ 4.70+ 312
- --------------------------------------------------------- --------------- ----------- ----------- -------------
Class C
07/31/97-09/30/97(a) 80 2.00+ 4.11+ 312
- --------------------------------------------------------- --------------- ----------- ----------- -------------
High Yield Fund
Class A
09/30/97(a) $ 49,258 0.90%+ 8.43%+ 17%
- --------------------------------------------------------- --------------- ----------- ----------- -------------
01/13/97-03/31/97 28,873 0.92+ 8.28+ 67
- --------------------------------------------------------- --------------- ----------- ----------- -------------
Class B
09/30/97(a) 100,636 1.65+ 7.68+ 17
- --------------------------------------------------------- --------------- ----------- ----------- -------------
01/13/97-03/31/97 60,269 1.67+ 7.52+ 67
- --------------------------------------------------------- --------------- ----------- ----------- -------------
Class C
09/30/97(a) 242,856 1.65+ 7.71+ 17
- --------------------------------------------------------- --------------- ----------- ----------- -------------
01/13/97-03/31/97 205,297 1.68+ 7.56+ 67
- --------------------------------------------------------- --------------- ----------- ----------- -------------
Money Market Fund
Class A
09/30/97(a) $ 44,690 0.60%+(f) 5.05%+(h) N/A
- --------------------------------------------------------- --------------- ----------- ----------- -------------
01/13/97-03/31/97 43,589 0.57+ 4.44+ N/A
- --------------------------------------------------------- --------------- ----------- ----------- -------------
Class B
09/30/97(a) 2,584 1.50+ 4.12+ N/A
- --------------------------------------------------------- --------------- ----------- ----------- -------------
01/13/97-03/31/97 3,143 1.41+ 3.62+ N/A
- --------------------------------------------------------- --------------- ----------- ----------- -------------
Class C
09/30/97(a) 59,700 0.60+(f) 5.04+(i) N/A
- --------------------------------------------------------- --------------- ----------- ----------- -------------
01/13/97-03/31/97 85,398 0.58+ 4.47+ N/A
- --------------------------------------------------------- --------------- ----------- ----------- -------------
StocksPLUS Fund
Class A
09/30/97(a) $ 34,474 1.05%+ 15.21%+ 14%
- --------------------------------------------------------- --------------- ----------- ----------- -------------
01/20/97-03/31/97 5,790 1.10+ (10.69)+ 47
- --------------------------------------------------------- --------------- ----------- ----------- -------------
Class B
09/30/97(a) 44,617 1.80+ 13.95+ 14
- --------------------------------------------------------- --------------- ----------- ----------- -------------
01/20/97-03/31/97 8,281 1.88+ (15.13)+ 47
- --------------------------------------------------------- --------------- ----------- ----------- -------------
Class C
09/30/97(a) 51,686 1.55+(g) 14.27+(j) 14
- --------------------------------------------------------- --------------- ----------- ----------- -------------
01/20/97-03/31/97 11,254 1.65+ (12.79)+ 47
- --------------------------------------------------------- --------------- ----------- ----------- -------------
</TABLE>
(f) The Ratio of Expenses to Average Net assets without the waiver would have
been 0.70%.
(g) The Ratio of Expenses to Average Net assets without the waiver would have
been 1.80%.
(h) The Ratio of Net Investment Income to Average Net assets without the waiver
would have been 4.95%.
(i) The Ratio of Net Investment Income to Average Net assets without the waiver
would have been 4.94%.
(j) The Ratio of Net Investment Income to Average Net assets without the waiver
would have been 14.02%.
1997 Semiannual Report See accompanying notes 43
<PAGE>
Statement of Cash Flows
For the period ended September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
$ in thousands Global
Bond Fund
------------
<S> <C>
Increase in Cash and Foreign Currency from:
Financing Activities
Sales of Fund shares $ 70,591
- ----------------------------------------------------------------------------------------
Redemptions of Fund shares (26,662)
- ----------------------------------------------------------------------------------------
Cash distributions paid (1,477)
- ----------------------------------------------------------------------------------------
Proceeds from financing transactions 116,330
- ----------------------------------------------------------------------------------------
Net increase from financing activities 158,782
- ----------------------------------------------------------------------------------------
Operating Activities
Purchases of long-term securities and foreign currency (985,312)
- ----------------------------------------------------------------------------------------
Proceeds from sales of long-term securities and foreign currency 794,863
- ----------------------------------------------------------------------------------------
Purchases of short-term securities(net) 26,039
- ----------------------------------------------------------------------------------------
Net investment income 5,784
- ----------------------------------------------------------------------------------------
Change in other receivables/payables(net) (63)
- ----------------------------------------------------------------------------------------
Net decrease from operating activities (158,689)
- ----------------------------------------------------------------------------------------
Net Increase in Cash and Foreign Currency 93
- ----------------------------------------------------------------------------------------
Cash and Foreign Currency
Beginning of period 617
- ----------------------------------------------------------------------------------------
End of period $ 710
- ----------------------------------------------------------------------------------------
</TABLE>
44 PIMCO Funds See accompanying notes
<PAGE>
Schedule of Investments
Total Return Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES 16.5%
- --------------------------------------------------------------------------------
<S> <C> <C>
BANKING AND FINANCE 8.9%
Ahmanson (H.F.) & Co.
6.350% due 09/01/98 $ 6,000 $ 6,024
American Express Credit
8.500% due 08/15/01 250 269
6.800% due 12/15/03 1,500 1,536
American General Finance
7.250% due 04/15/00 500 511
5.875% due 07/01/00 75 74
Associates Corp. of North America
6.125% due 02/01/98 1,475 1,477
7.300% due 03/15/98 250 252
6.625% due 05/15/98 100 101
8.800% due 08/01/98 987 1,010
6.250% due 03/15/99 1,200 1,204
7.500% due 05/15/99 700 716
7.400% due 07/07/99 125 128
7.250% due 09/01/99 250 255
6.750% due 10/15/99 90 91
7.850% due 10/20/99 500 517
8.250% due 12/01/99 200 209
7.250% due 12/17/99 660 675
7.470% due 03/27/00 1,000 1,030
6.310% due 06/16/00 500 502
6.250% due 09/15/00 50 50
AT&T Capital Corp.
6.030% due 10/27/97 32,115 32,125
5.880% due 11/05/97 65,000 65,013
5.776% due 11/05/97 (d) 10,000 10,001
5.900% due 11/05/97 (d) 30,000 30,001
5.900% due 11/13/97 75,000 75,020
5.877% due 01/30/98 (d) 12,500 12,505
5.806% due 02/03/98 (d) 6,250 6,254
7.350% due 03/02/98 6,000 6,041
6.900% due 04/15/98 19,800 19,926
6.300% due 06/09/98 37,000 37,128
AVCO Financial Services
6.350% due 09/15/00 100 100
7.375% due 08/15/01 300 310
Bancomer
8.000% due 07/07/98 7,000 7,046
Banesto Delaware
8.250% due 07/28/02 28,900 30,896
BankAmerica Corp.
6.050% due 06/10/98 36,000 36,051
7.750% due 07/15/02 60 63
7.200% due 09/15/02 400 412
7.500% due 10/15/02 1,000 1,044
6.850% due 03/01/03 50 51
8.375% due 05/01/07 3 3
Bankers Trust Co.
8.625% due 04/01/18 151 156
Banponce Corp.
8.040% due 11/24/97 9,000 9,025
Barclays American Corp.
9.125% due 12/01/97 350 352
Bear Stearns
6.070% due 08/29/00 (d) 37,500 37,500
6.750% due 04/15/03 105 106
Beneficial Corp.
9.600% due 10/16/98 250 259
BT Securities Corp.
6.032% due 08/16/99 (d) 10,000 9,997
Charles Schwab
5.670% due 09/30/98 525 523
Chase Manhattan Corp.
8.500% due 02/15/02 200 216
8.000% due 05/01/05 200 203
Chemical Banking Corp.
6.125% due 11/01/08 400 380
Chrysler Financial Corp.
8.420% due 02/01/99 695 717
8.460% due 01/19/00 700 734
5.860% due 01/16/01 500 494
Chubb Capital Corp.
8.750% due 11/15/99 120 122
6.875% due 02/01/03 100 102
Citicorp
8.750% due 02/15/98 9,000 9,099
6.146% due 10/20/99 (d) 10,000 10,065
6.119% due 10/25/99 (d) 11,000 11,072
Commercial Credit Co.
6.750% due 05/15/00 100 101
6.000% due 06/15/00 300 299
8.250% due 11/01/01 2,500 2,667
7.750% due 03/01/05 50 53
Dean Witter Discover
5.690% due 03/02/99 (d) 100 100
6.750% due 08/15/00 100 102
Exxon Capital Corp.
7.450% due 12/15/01 250 261
First Interstate Bancorp
8.875% due 01/01/09 311 313
Fleet Financial Group
9.900% due 06/15/01 200 222
Ford Motor Credit Corp.
8.000% due 12/01/97 260 261
7.240% due 04/01/98 11,000 11,086
5.750% due 04/30/98 300 300
5.810% due 11/09/98 (d) 17,080 17,165
8.000% due 01/15/99 500 512
8.375% due 01/15/00 150 157
6.950% due 05/15/00 1,200 1,222
6.850% due 08/15/00 1,500 1,524
7.020% due 10/10/00 70,000 71,453
7.020% due 06/07/01 1,000 1,023
7.000% due 09/25/01 1,125 1,152
6.625% due 06/30/03 575 578
8.250% due 02/23/05 2,500 2,732
6.125% due 01/09/06 25 24
7.700% due 05/15/97 450 477
General Electric Capital Corp.
5.980% due 03/19/99 1,500 1,507
8.375% due 03/01/01 600 640
5.500% due 11/01/01 50 49
8.300% due 09/20/09 150 171
General Motors Acceptance Corp.
6.000% due 10/10/97 23,000 23,002
7.850% due 11/17/97 13,000 13,037
7.375% due 03/23/98 2,290 2,309
7.250% due 07/20/98 25,785 26,080
7.750% due 01/15/99 500 511
7.375% due 05/26/99 190 194
8.625% due 06/15/99 650 677
8.400% due 10/15/99 360 376
8.170% due 01/02/00 2,268 2,337
7.000% due 03/01/00 100 102
7.500% due 06/09/00 1,000 1,031
6.800% due 04/17/01 500 508
9.625% due 12/15/01 300 335
6.750% due 02/07/02 590 598
7.000% due 09/15/02 250 256
8.950% due 07/02/09 21,500 23,470
Goldman Sachs Mortgage Corp.
6.000% due 12/31/07 11,150 10,336
Great Western Bank
8.625% due 12/01/98 6,000 6,148
Household Finance Corp.
6.250% due 10/15/97 201 201
5.650% due 05/26/98 500 499
Inter-American Development Bank
8.875% due 06/01/09 200 239
International Bank for Reconstruction & Development
9.875% due 10/01/97 194 194
International Lease Finance
5.750% due 12/15/99 50 50
6.420% due 09/11/00 500 503
Key Bank N.A.
6.050% due 04/06/98 19,875 19,879
</TABLE>
1997 Semiannual Report See accompanying notes 45
<PAGE>
Schedule of Investments (cont.)
Total Return Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000's) (000's)
- --------------------------------------------------------------------------------
<S> <C> <C>
Kimco Realty Corp.
6.500% due 10/01/03 $ 200 $ 196
Lehman Brothers, Inc.
6.730% due 02/27/98 45,000 45,165
7.850% due 05/11/98 4,350 4,401
6.375% due 06/01/98 100 100
6.875% due 06/08/98 5,800 5,828
6.404% due 06/22/98(d) 25,000 25,119
6.250% due 06/29/98 5,400 5,411
7.625% due 08/01/98 250 253
6.840% due 09/25/98 20,750 20,891
Mellon Bank
6.500% due 08/01/05 75 74
Merrill Lynch & Co.
6.375% due 03/30/99 400 402
6.620% due 06/06/00 500 506
6.500% due 04/01/01 100 101
5.850% due 01/15/02(d) 17,000 17,066
8.300% due 11/01/02 200 216
7.000% due 03/15/06 1,500 1,529
7.000% due 04/27/08 100 102
NationsBank Corp.
5.125% due 09/15/98 100 99
6.750% due 02/26/01 500 506
7.000% due 09/15/01 1,500 1,536
NBD Bank N.A.
7.500% due 02/28/98 1,000 1,008
NCNB Corp.
7.750% due 08/01/02 796 797
Northern Trust
9.000% due 05/15/98 200 204
Norwest Corp.
5.750% due 11/16/98 300 300
Norwest Financial, Inc.
6.500% due 11/15/97 1,500 1,502
6.230% due 09/01/98 100 100
7.000% due 01/15/03 300 307
6.000% due 02/01/04 50 49
PaineWebber
6.250% due 06/15/98 100 100
7.000% due 03/01/00 200 203
PNC Funding Corp.
6.875% due 03/01/03 100 101
Popular, Inc.
6.715% due 06/06/00 20,000 20,198
Reliance Group Holdings
9.000% due 11/15/00 9,000 9,420
Salomon, Inc.
5.650% due 10/15/97 6,000 6,000
5.919% due 10/31/97(d) 112,000 112,033
5.888% due 11/05/97(d) 13,000 13,004
5.890% due 11/10/97 99,000 99,030
7.000% due 01/20/98 7,000 7,026
5.500% due 01/31/98 1,000 1,000
5.650% due 02/10/98 1,165 1,165
5.700% due 02/11/98 1,300 1,300
5.850% due 07/24/98(d) 55,000 54,981
5.799% due 08/04/98(d) 15,000 15,006
5.250% due 10/15/98 400 397
6.088% due 11/19/98(d) 3,000 3,012
6.220% due 11/19/98 2,300 2,305
6.651% due 02/12/99(d) 1,000 1,003
7.000% due 05/15/99 6,635 6,717
6.500% due 03/01/00 14,350 14,400
6.625% due 11/30/00 70 71
3.650% due 02/14/02(h) 17,203 16,724
Sears Financial
0.000% due 07/12/98 3,480 3,318
Security Pacific Corp.
6.000% due 05/01/00 600 596
Signet Bank Corp.
5.938% due 04/15/98(d) 9,000 8,969
9.625% due 06/01/99 6,500 6,849
Smith Barney Holdings
6.625% due 06/01/00 95 96
Societe Generale
7.400% due 06/01/06 1,500 1,553
Sparbanken Sverige AB
7.773% due 10/29/49(d) 12,670 12,854
Swedbank
7.773% due 10/29/49(d) 12,000 12,281
Texaco Capital
9.000% due 11/15/97 1,000 1,004
Toyota Motor Credit Corp.
4.693% due 02/15/02(d) 40,000 38,781
Transamerica Financial
5.703% due 04/20/99(d) 500 499
Trizec Finance Ltd.
10.875% due 10/15/05 2,489 2,869
U.S. Life Corp.
6.750% due 01/15/98 100 100
U.S. West Financial, Inc.
8.400% due 09/15/99 50 52
Wachovia Bank
6.700% due 04/14/99 500 505
Wells Fargo & Co.
8.750% due 05/01/02 100 100
----------
1,336,165
----------
Industrials 4.4%
Allied Waste Industries, Inc.
7.562% due 06/12/03 10,000 10,000
American Home Products
7.700% due 02/15/00 300 309
Amerigas Partners L.P.
10.125% due 04/15/07 1,730 1,842
AMR Corp.
7.750% due 12/01/97 20,000 20,061
9.500% due 07/15/98 5,500 5,649
9.270% due 08/13/98 1,000 1,027
8.050% due 03/05/99 4,000 4,107
9.750% due 03/15/00 10,760 11,614
10.610% due 01/11/01 4,000 4,479
10.570% due 01/15/01 3,000 3,360
10.590% due 01/31/01 3,000 3,366
10.000% due 02/01/01 2,000 2,211
9.400% due 05/08/01 3,000 3,269
9.500% due 05/15/01 2,250 2,472
9.130% due 10/25/01 2,000 2,182
8.470% due 02/20/02 2,000 2,134
8.500% due 02/26/02 1,000 1,068
10.210% due 01/01/10 6,500 8,057
Arkla, Inc.
9.320% due 12/15/97 1,000 1,007
8.740% due 05/14/98 3,000 3,038
Baxter International
9.500% due 06/15/08 200 242
Blockbuster Entertainment
6.625% due 02/15/98 5,000 5,012
Boeing Co.
8.375% due 02/15/01 150 160
Boise Cascade Co.
9.900% due 03/15/00 65 70
BP America, Inc.
8.875% due 12/01/97 750 754
Building Materials Corp.
0.000% due 07/01/04(i) 20,320 18,948
Canadian Pacific Ltd.
9.450% due 08/01/21 2,750 3,387
CBS, Inc.
7.625% due 01/01/02 100 102
Cemex S.A.
4.250% due 11/01/97 4,500 4,472
Centerior Fuel Corp.
9.200% due 08/02/98 15,000 15,000
Century Communications Corp.
9.500% due 08/15/00 6,000 6,255
CF Cable TV, Inc.
9.125% due 07/15/07 1,600 1,748
Continental Cablevision
11.000% due 06/01/07 4,536 5,086
</TABLE>
46 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
<S> <C> <C>
Cumberland Farms
10.500% due 10/01/03 $ 3,698 $ 3,716
Dayton Hudson Co.
10.000% due 12/01/00 1,000 1,101
Delta Air Lines
10.140% due 08/14/12 1,000 1,226
Dimon, Inc.
8.875% due 06/01/06 3,000 3,214
E.I. Du Pont de Nemours
8.650% due 12/01/97 500 502
9.150% due 04/15/00 100 107
Eli Lilly & Co.
8.125% due 02/07/00 387 403
Federal Express
10.000% due 09/01/98 800 827
Ford Motor Co.
9.000% due 09/15/01 200 219
Gillette Co.
5.750% due 10/15/05 1,500 1,441
Global Marine
12.750% due 12/15/99 14,200 14,626
Gulf Canada Resources
9.250% due 01/15/04 1,250 1,325
9.625% due 07/01/05 2,000 2,183
HMH Properties, Inc.
9.500% due 05/15/05 2,000 2,108
Hollinger International Publishing
9.250% due 02/01/06 3,000 3,120
IBM Corp.
7.250% due 11/01/02 100 104
INDSPEC Chemical Corp.
0.000% due 12/01/03(i) 5,500 5,308
Integrated Health Services
7.469% due 09/16/04(d) 15,000 14,963
ISP Holdings, Inc.
9.000% due 10/15/03 5,000 5,255
ITT Corp.
6.250% due 11/15/00 70 69
K-III Communications Co.
8.500% due 02/01/06 4,000 4,090
Kaiser Aluminum & Chemical
9.875% due 02/15/02 250 261
Keystone Group
9.750% due 09/01/03 250 266
Lenfest Communications
8.375% due 11/01/05 5,000 5,050
Maxus Energy Corp.
9.875% due 10/15/02 300 315
Mazda Manufacturing Corp.
10.500% due 07/01/08 1,980 2,523
Mobil Corp.
8.375% due 02/12/01 40 43
Nabisco, Inc.
8.000% due 01/15/00 7,500 7,775
New York Times
7.625% due 03/15/05 1,000 1,058
News America Holdings Corp.
7.500% due 03/01/00 65 67
8.625% due 02/01/03 750 812
Nike, Inc.
6.510% due 06/16/00 1,000 1,009
Noranda, Inc.
7.000% due 07/15/05 1,800 1,814
Parker Drilling Corp.
7.910% due 11/29/02(d) 6,750 6,750
PDV America, Inc.
7.250% due 08/01/98 10,719 10,805
Pepsico, Inc.
5.463% due 07/01/98 400 398
7.750% due 10/01/98 500 509
7.625% due 11/01/98 1,500 1,527
Philip Morris Co.
7.375% due 02/15/99 115 117
8.625% due 03/01/99 200 207
7.500% due 01/15/02 50 52
6.800% due 12/01/03 48,345 48,297
Phillips Petroleum
9.500% due 11/15/97 500 502
Quantas Airways
6.625% due 06/30/98 25,000 25,118
Repap Wisconsin, Inc.
9.250% due 02/01/02 2,350 2,479
Revlon Consumer Products Corp.
9.375% due 04/01/01 5,255 5,465
RJR Nabisco
7.625% due 09/01/00 6,000 6,142
8.000% due 07/15/01 30,000 30,848
8.625% due 12/01/02 3,000 3,160
7.625% due 09/15/03 9,000 9,083
Rogers Cablesystems, Inc.
10.000% due 12/01/07 5,000 5,500
Rogers Cantel Mobile
11.125% due 07/15/02 5,000 5,188
9.375% due 06/01/08 2,750 2,943
Saferco
9.460% due 05/31/99 1,000 1,052
9.590% due 05/31/01 3,000 3,308
SCI Television
11.000% due 06/30/05 3,275 3,443
Sears Roebuck & Co.
9.250% due 04/15/98 2,125 2,163
7.960% due 02/18/99 500 513
5.820% due 02/22/99 125 125
6.800% due 05/07/01 500 507
6.790% due 05/21/01 500 507
9.400% due 08/02/01 250 275
Showboat, Inc.
9.250% due 05/01/08 1,000 1,040
Supervalu, Inc.
6.500% due 10/06/00 140 141
TCI Communications, Inc.
7.130% due 02/02/98 3,500 3,515
6.355% due 09/11/00(d) 22,000 21,940
Telecommunications, Inc.
9.875% due 04/01/98 3,000 3,057
Telewest Communications
9.625% due 10/01/06 5,000 5,194
Tenet Healthcare Corp.
9.625% due 09/01/02 6,250 6,859
10.125% due 03/01/05 1,000 1,105
Time Warner, Inc.
7.450% due 02/01/98 32,000 32,165
7.975% due 08/15/04 31,803 33,552
8.110% due 08/15/06 80,029 85,563
8.180% due 08/15/07 1,500 1,617
7.250% due 09/01/08 125 127
Transcontinental Gas Pipeline
9.125% due 02/01/17 2,000 2,086
United Air Lines
6.750% due 12/01/97 14,400 14,423
USX Corp.
6.375% due 07/15/98 16,200 16,245
9.800% due 07/01/01 300 333
Vons
6.625% due 05/15/98 6,006 5,991
Wal-Mart Stores
9.100% due 07/15/00 100 108
8.625% due 04/01/01 1,050 1,129
WMX Technologies
8.125% due 02/01/98 750 756
World Color Press, Inc.
9.125% due 03/15/03 5,000 5,250
Xerox Corp.
7.040% due 04/30/99 770 782
7.410% due 05/15/01 1,000 1,034
-------
660,383
-------
UTILITIES 3.2%
AES Corp.
10.250% due 07/15/06 4,500 4,950
Arkansas Power & Light
10.370% due 12/22/97 3,000 3,020
</TABLE>
1997 Semiannual Report See accompanying notes 47
<PAGE>
Schedule of Investments (cont.)
Total Return Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
<S> <C> <C>
Bell Atlantic Financial
6.625% due 11/30/97 $ 400 $ 400
5.300% due 09/01/98 1,000 996
California Energy
10.250% due 01/15/04(d) 12,985 14,110
Calpine Corp.
9.250% due 02/01/04 4,150 4,275
Carolina Power & Light
6.375% due 10/01/97 50 50
5.375% due 07/01/98 100 100
Central Maine Power Co.
6.250% due 11/01/98 1,000 996
Central Power & Light
6.000% due 10/01/97 850 850
Chesapeake & Potomac Telephone
8.000% due 10/15/29 1,125 1,240
Chesapeake Energy Corp.
12.000% due 03/01/01 7,000 7,560
Cincinnati Bell, Inc.
6.700% due 12/15/97 1,000 1,002
Cleveland Electric Illuminating Co.
9.450% due 12/01/97 5,000 5,028
8.150% due 11/30/98 7,500 7,642
7.190% due 07/01/00 10,000 10,124
9.375% due 03/01/17 3,000 3,132
CMS Energy
9.500% due 10/01/97(d) 31,600 31,603
9.875% due 10/01/99(d) 12,700 12,909
Coastal Corp.
8.750% due 05/15/99 4,300 4,455
Commonwealth Edison
8.000% due 10/15/03 7,550 7,673
8.125% due 01/15/07 10,000 10,188
9.875% due 06/15/20 11,700 13,577
Connecticut Light & Power
6.500% due 01/01/98 1,000 1,001
7.250% due 07/01/99 6,000 5,991
5.750% due 07/01/00 2,000 1,935
7.750% due 06/01/02 5,000 5,066
Consolidated Edison
7.600% due 01/15/00 100 103
Consolidated Natural Gas Co.
5.875% due 10/01/98 500 500
Consumers Energy Corp.
8.750% due 02/15/98 5,550 5,600
Duke Energy Corp.
8.000% due 11/01/99 40 41
Eastern Edison Co.
7.780% due 07/30/02 9,000 9,431
El Paso Electric Co.
7.250% due 02/01/99 10,956 11,010
El Paso Natural Gas
10.000% due 08/01/98 1,600 1,652
First PV Funding
10.150% due 01/15/16 6,763 7,214
Georgia Power
7.000% due 10/01/00 5,000 5,001
GTE Corp.
8.850% due 03/01/98 200 203
10.750% due 09/15/17 300 315
Gulf States Utilities
7.250% due 03/01/99 6,200 6,230
Long Island Lighting Co.
7.300% due 07/15/99 22,015 22,370
6.250% due 07/15/01 7,000 6,925
8.500% due 05/15/06 6,750 7,103
7.900% due 07/15/08 4,335 4,420
8.900% due 07/15/19 46,000 49,013
9.750% due 05/01/21 28,818 29,899
9.625% due 07/01/24 16,400 17,015
MCI Communications Corp.
6.250% due 03/23/99 600 602
New England Power
6.140% due 02/02/98 500 501
6.100% due 02/04/98 1,000 1,000
New Jersey Bell Telephone
7.850% due 11/15/29 70 81
New Orleans Public Service
8.670% due 04/01/05 2,230 2,258
New York Telephone Co.
6.250% due 02/15/04 150 148
North Atlantic Energy
9.050% due 06/01/02 4,872 4,919
Northern Illinois Gas Co.
6.450% due 08/01/01 1,450 1,460
Oklahoma Gas & Electric
6.375% due 01/01/98 100 100
Pacific Gas & Electric Co.
5.375% due 08/01/98 500 498
7.670% due 12/15/98 208 212
6.750% due 12/01/00 709 716
Pacific Northwest Bell
4.375% due 09/01/02 50 46
Pennsylvania Power & Light
5.500% due 04/01/98 250 250
Philadelphia Electric
6.125% due 10/01/97 500 500
5.375% due 08/15/98 12,000 11,941
Public Service Electric & Gas
8.750% due 07/01/99 40 42
Public Service of New Hampshire
9.170% due 05/15/98 16,000 16,243
Queststar Pipeline
9.375% due 06/01/21 200 229
Southern California Edison
5.875% due 02/01/98 343 343
5.450% due 06/15/98 400 399
Southwestern Bell Telephone Co.
5.550% due 03/10/98 1,000 1,000
6.125% due 03/01/00 50 50
System Energy Resources
6.000% due 04/01/98 801 801
Tennessee Valley Authority
0.000% due 04/15/42(i) 855 327
Texas Utilities Co.
5.750% due 07/01/98 11,750 11,741
6.258% due 05/01/99(d) 32,125 32,140
Texas-New Mexico Power
10.750% due 09/15/03 4,950 5,391
Toledo Edison Co.
8.180% due 07/30/02 1,400 1,461
8.700% due 09/01/02 10,000 10,439
7.850% due 03/31/03 7,000 7,213
7.875% due 08/01/04 500 517
Trident NGL, Inc.
10.250% due 04/15/03 7,500 8,053
Tuscon Electric Power
8.500% due 10/01/09 1,000 1,051
U.S. West Communications, Inc.
6.625% due 09/15/05 300 301
United Air Lines
10.670% due 05/01/04 2,050 2,431
Virginia Electric & Power Co.
9.375% due 06/01/98 7,500 7,667
6.250% due 08/01/98 200 201
Wilmington Trust Co. - Tucson Electric
10.732% due 01/01/13 991 1,008
---------
478,278
---------
Total Corporate Bonds and Notes 2,474,826
(Cost $2,445,688) ---------
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES 7.7%
- --------------------------------------------------------------------------------
A.I.D. Housing Guarantee - Peru
9.980% due 08/01/08 1,210 1,312
Federal Home Loan Bank
6.320% due 12/04/97 1,500 1,502
5.740% due 12/23/98(d) 250 250
8.600% due 06/25/99 20 21
Federal Home Loan Mortgage Corp.
5.950% due 06/19/98 20,000 20,054
7.125% due 07/21/99 235 240
6.610% due 08/07/00 1,000 1,005
</TABLE>
48 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
<S> <C> <C>
6.565% due 11/04/02 $ 2,000 $ 2,003
6.170% due 12/11/02 2,000 1,982
7.120% due 09/30/05 100 100
6.780% due 12/07/05 100 99
Federal National Mortgage Assn.
6.050% due 11/10/97 100 100
5.250% due 03/25/98 200 200
5.250% due 05/13/98 100 100
5.830% due 06/12/98 500,000 500,753
5.840% due 06/19/98 190,000 189,940
5.100% due 07/22/98 250 249
5.880% due 07/17/00 1,200 1,198
7.500% due 02/11/02 735 773
6.625% due 04/10/03 500 500
4.875% due 12/25/16 100 99
Government Trust Certificate - Greece
8.000% due 05/15/98 39 39
Student Loan Marketing Assn.
5.340% due 02/17/98(d) 100 100
7.000% due 03/03/98 30 30
6.000% due 06/30/98 264,500 265,242
4.385% due 02/20/00(d) 134,700 133,035
5.605% due 04/25/04(d) 30,463 30,490
----------
Total U.S. Government Agencies 1,151,416
(Cost $1,150,369) ----------
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS 2.4%
- --------------------------------------------------------------------------------
Treasury Inflation Protected Securities
3.625% due 07/15/02(h) 303,440 302,682
U.S. Treasury Bonds
12.375% due 05/15/04 1,000 1,338
U.S. Treasury Notes
6.250% due 06/30/98 2,620 2,634
5.250% due 07/31/98 100 100
6.000% due 09/30/98 48,600 48,767
5.875% due 10/31/98 620 621
8.875% due 11/15/98 1,100 1,137
5.125% due 11/30/98 1,310 1,302
6.625% due 04/30/02 30 31
6.250% due 06/30/02 90 91
----------
Total U.S. Treasury Obligations 358,703
(Cost $357,982) ----------
- --------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES 54.7%
- --------------------------------------------------------------------------------
Collateralized Mortgage Obligations 13.1%
AFC Home Equity Loan Trust
6.550% due 01/25/27(d) 8,488 8,513
American Southwest Financial
12.250% due 11/01/14 80 91
12.500% due 04/01/15 841 936
12.000% due 05/01/15 1,258 1,410
11.400% due 09/01/15 1,042 1,089
Bear Stearns
9.200% due 11/01/18 45 46
9.500% due 06/25/23 1,113 1,139
6.375% due 10/25/23(d) 9,109 9,150
10.000% due 08/25/24 15,018 17,038
7.000% due 03/25/27 7,000 6,947
Capstead Mortgage Corp.
8.400% due 01/25/21 2,791 2,812
8.750% due 07/25/21 10,000 10,285
Centex Acceptance Corp.
11.000% due 11/01/15 286 300
Chase Mortgage Financial Corp.
8.250% due 10/25/10 3,897 3,951
9.500% due 04/25/24 992 990
8.000% due 06/25/24 86 86
7.500% due 10/25/24 47 47
Citicorp Mortgage Securities, Inc.
8.500% due 04/01/17 315 314
9.500% due 01/01/19 4,577 4,586
9.500% due 09/25/19 250 249
9.500% due 09/25/20 1,662 1,706
7.750% due 04/25/21 133 132
6.000% due 08/25/21 477 474
7.635% due 10/25/22(d) 24,291 24,830
7.250% due 02/25/27 360 364
CMC Securities Corp.
7.212% due 09/25/23(d) 16,560 16,878
7.735% due 04/25/25(d) 518 531
Collateralized Mortgage Obligation Trust
10.200% due 02/01/16 677 724
8.000% due 01/01/17 297 302
8.000% due 09/20/21 7,837 8,137
Collateralized Mortgage Securities Corp.
11.875% due 04/01/15 1,860 1,969
11.450% due 09/01/15 60 65
11.450% due 11/01/15(d) 345 346
8.750% due 04/20/19 1,088 1,148
Countrywide
8.231% due 07/25/24(d) 16,519 16,741
Donaldson, Lufkin & Jenrette
7.396% due 08/01/21(d) 7,812 7,866
7.860% due 12/25/22(d) 6,037 6,194
8.245% due 03/25/24(d) 2,279 2,332
6.500% due 04/25/24 27 27
8.057% due 05/25/24(d) 479 485
Drexel Mortgage Funding
9.500% due 11/20/17 1,986 2,082
8.600% due 03/01/18 800 809
Federal Home Loan Mortgage Corp.
5.000% due 07/15/02 427 427
6.500% due 07/15/02 1,502 1,498
4.750% due 10/15/02 186 185
5.000% due 03/15/03 928 927
5.250% due 03/15/03 1,577 1,576
5.000% due 04/15/03 1,581 1,579
7.000% due 10/15/03 6,303 6,418
5.450% due 03/15/04 10,319 10,314
5.500% due 11/15/04 11,983 11,972
8.750% due 10/15/05 14 14
10.750% due 11/30/05 574 587
6.500% due 07/15/06 1,075 1,071
6.500% due 08/15/06 710 714
6.500% due 11/15/06 156 157
6.500% due 05/15/08 1,000 996
4.500% due 08/15/08 13,424 13,366
5.000% due 02/15/11 1,065 1,064
5.500% due 11/15/11 3,461 3,459
4.875% due 12/15/11 2,046 2,044
5.150% due 12/25/11 16,250 16,185
5.000% due 01/15/12 1,859 1,856
8.500% due 08/15/13 2,000 2,151
6.050% due 09/15/13 2,521 2,515
8.500% due 09/15/13 5,941 6,419
5.500% due 12/15/13 2,571 2,569
7.000% due 04/25/15 1,647 1,657
11.000% due 11/30/15 10,964 12,755
6.900% due 03/15/16 5,848 5,862
6.210% due 08/15/17 345 345
6.350% due 03/25/18 200 200
5.250% due 05/15/18 1,369 1,355
9.500% due 01/15/19 461 466
6.500% due 05/15/19 615 617
8.500% due 10/15/19 631 636
9.000% due 11/15/19 2,846 2,878
7.000% due 02/15/20 1,173 1,178
8.500% due 03/15/20 1,566 1,581
9.125% due 06/15/20 2,896 2,975
8.500% due 09/15/20 16,603 16,938
5.500% due 10/15/20 200 188
8.750% due 10/15/20 500 511
9.500% due 11/15/20 10,622 11,406
6.000% due 12/15/20 400 388
8.750% due 12/15/20 1,265 1,343
9.000% due 12/15/20 6,473 6,888
8.500% due 06/15/21 50,803 53,559
6.950% due 07/15/21 700 699
8.000% due 07/15/21 9,206 9,549
</TABLE>
1997 Semiannual Report See accompanying notes 49
<PAGE>
Schedule of Investments (Cont.)
Total Return Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
<S> <C> <C>
9.000% due 07/15/21 $ 3,767 $ 4,086
9.500% due 07/15/21 5,449 5,657
6.200% due 08/15/21 1,500 1,491
6.950% due 08/15/21 185 186
8.000% due 08/15/21 23,472 24,374
6.500% due 09/15/21 2,500 2,476
9.000% due 11/15/21 465 467
8.000% due 12/15/21 14,490 15,331
6.850% due 01/15/22 700 700
8.250% due 06/15/22 5,000 5,297
7.000% due 07/15/22 7,470 7,146
8.500% due 10/15/22 18,909 19,851
6.500% due 07/15/23 462 446
7.000% due 07/15/23 219 207
6.500% due 02/15/24 61 60
8.000% due 09/15/24 16,250 17,422
7.865% due 10/01/26 (d) 9,148 9,559
Federal National Mortgage Assn.
9.100% due 02/25/02 6,240 6,421
5.500% due 12/25/03 3,182 3,179
5.750% due 12/25/03 175 174
7.500% due 05/25/05 6,700 6,976
7.000% due 11/25/05 20 20
7.500% due 02/25/06 375 390
6.500% due 07/25/06 75 75
8.000% due 11/25/06 30 31
6.000% due 07/25/07 300 295
7.630% due 08/25/07 (d) 126 119
7.000% due 10/25/07 200 205
7.000% due 02/25/08 1,055 1,048
10.500% due 08/25/08 7,146 8,655
7.000% due 11/25/09 3,996 3,999
4.950% due 06/25/10 5,420 5,402
6.750% due 11/25/10 1,300 1,299
7.000% due 01/25/11 500 507
5.000% due 05/25/12 2,290 2,283
4.900% due 12/25/12 1,507 1,500
6.750% due 05/25/13 7,906 7,920
6.400% due 09/25/14 668 669
10.000% due 12/25/14 1,166 1,198
6.000% due 11/25/15 12,878 12,842
9.670% due 01/25/17 559 577
9.200% due 12/25/17 1,269 1,303
7.000% due 01/25/18 1,730 1,741
9.300% due 05/25/18 2,010 2,148
6.175% due 06/25/18 (d) 9 9
9.500% due 06/25/18 1,027 1,104
5.500% due 07/25/18 220 217
8.500% due 07/25/18 72 72
7.000% due 08/25/18 10,694 10,707
7.750% due 10/25/18 178 179
9.500% due 11/25/18 13,460 14,808
6.500% due 03/25/19 885 877
6.625% due 06/25/19 25 25
9.500% due 06/25/19 4,048 4,350
8.000% due 10/25/19 18,980 19,510
7.500% due 12/25/19 200 204
9.000% due 12/25/19 17,189 18,414
7.500% due 05/25/20 8,000 8,190
8.000% due 07/25/20 141 143
9.000% due 09/25/20 7,493 8,029
8.000% due 12/25/20 21,016 22,255
8.750% due 01/25/21 9,097 9,655
7.500% due 02/25/21 16,088 16,283
7.500% due 03/25/21 20,919 21,388
7.250% due 04/25/21 8,960 8,958
7.500% due 06/25/21 320 326
8.000% due 07/25/21 27,306 28,219
8.500% due 09/25/21 16,623 17,402
7.000% due 10/25/21 7,556 7,412
8.000% due 10/25/21 22,430 23,255
6.000% due 12/25/21 200 196
8.000% due 01/25/22 21,700 22,526
8.000% due 03/25/22 480 495
7.000% due 04/25/22 17,091 16,751
8.000% due 06/25/22 3,040 3,327
7.000% due 07/25/22 9,545 9,547
8.000% due 07/25/22 48,162 51,225
6.500% due 10/25/22 3,332 2,969
7.800% due 10/25/22 5,442 5,553
6.500% due 12/25/22 941 924
7.000% due 03/25/23 23,432 22,356
6.900% due 05/25/23 129 119
7.000% due 06/25/23 4,036 3,671
6.000% due 08/25/23 5,137 4,824
6.500% due 08/25/23 198 197
6.750% due 10/25/23 488 450
6.500% due 11/25/23 170 161
7.500% due 08/18/27 11,543 11,121
First Commonwealth Savings & Loan
10.375% due 04/01/05 22 23
General Electric Capital Mortgage
8.000% due 07/25/23 12,979 13,274
6.500% due 09/25/23 45 40
6.500% due 02/25/24 22 23
6.500% due 03/25/24 12,441 11,190
8.000% due 06/25/25 14,336 14,610
7.500% due 04/25/27 360 366
Glendale Federal Savings & Loan
7.416% due 03/01/28 (d) 10,500 10,661
Greenwich
7.236% due 04/25/22 (d) 2,607 2,627
7.205% due 07/25/22 (d) 12,482 12,622
7.285% due 10/25/22 (d) 327 329
7.370% due 04/25/23 (d) 3,965 4,027
7.914% due 04/25/24 (d) 5,671 5,764
8.219% due 06/25/24 (d) 7,283 7,451
8.985% due 08/25/24 (d) 10,490 10,778
8.767% due 11/25/24 (d) 3,327 3,406
Imperial CMB Trust
5.945% due 09/25/26 (d) 32,417 32,528
Independent National Mortgage Corp.
6.650% due 10/25/24 2,723 2,600
8.303% due 11/25/24 (d) 12,262 12,591
7.288% due 07/25/25 (d) 34,115 34,691
8.161% due 07/25/25 (d) 37,893 38,651
International Mortgage Acceptance Corp.
12.250% due 03/01/14 596 648
J.P. Morgan & Co.
9.000% due 10/20/20 13,573 14,572
Kidder Peabody Acceptance Corp.
8.389% due 05/20/18 456 469
8.134% due 03/25/24 (d) 21,948 22,291
8.134% due 09/25/24 (d) 20,000 20,400
Marine Midland
8.000% due 04/25/23 74 75
8.000% due 10/25/23 350 359
Merrill Lynch Mortgage
9.470% due 04/27/18 6 6
7.300% due 06/15/21 (d) 9,421 9,609
7.559% due 06/15/21 (d) 8,842 9,077
8.104% due 06/25/22 (d) 10,893 11,060
Morgan Stanley Mortgage
8.150% due 07/20/21 15 15
Nomura Asset Securities Corp.
7.998% due 05/25/24 (d) 13,263 13,615
Norwest Mortgage
12.500% due 02/01/14 1,104 1,179
12.250% due 04/01/14 115 121
PaineWebber Mortgage
6.000% due 04/25/09 11,951 11,266
Prudential Bache
6.103% due 09/01/18 (d) 555 553
9.000% due 01/01/19 540 547
8.400% due 03/20/21 5,169 5,357
Prudential Home
7.000% due 04/25/99 35 35
8.000% due 06/25/22 20,198 20,715
6.900% due 03/25/23 463 462
7.000% due 04/25/23 3,594 3,599
8.434% due 11/25/23 (d) 1,245 1,277
8.449% due 11/25/23 (d) 13,008 13,366
</TABLE>
50 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
<S> <C> <C>
7.000% due 02/25/24 $ 1,237 $ 1,238
6.000% due 05/25/24 28 28
7.750% due 10/25/24 7,010 7,087
7.500% due 06/25/25 8,561 8,650
PSB Financial Corp.
11.050% due 12/01/15 1,119 1,218
Residential Asset Securities Corp.
7.000% due 03/25/27 (d) 320 323
7.250% due 05/25/27 (d) 345 349
Residential Funding
6.750% due 01/25/06 53,161 53,170
8.080% due 02/25/07 122 125
7.000% due 08/25/08 20,634 20,844
6.500% due 09/25/08 7,000 6,778
8.500% due 05/25/17 136 141
8.000% due 01/25/23 10,000 10,306
7.250% due 07/25/23 115 116
7.750% due 07/25/24 10 10
8.000% due 10/25/24 15,417 15,827
7.500% due 09/25/25 18,183 18,523
5.987% due 10/25/27 (d) 17,354 17,371
Resolution Trust Corp.
7.495% due 02/25/20 (d) 270 270
7.346% due 09/25/20 (d) 15,951 160
5.954% due 01/25/21 (d) 1,140 1,119
8.693% due 06/25/21 (d) 4,347 4,367
8.717% due 08/25/21 117 120
8.720% due 08/25/21 (d) 13,329 13,766
8.722% due 08/25/21 8,000 8,346
7.570% due 09/25/21 (d) 3,825 3,878
6.178% due 10/25/21 (d) 352 351
6.625% due 10/25/21 (d) 1,292 1,296
8.140% due 10/25/21 (d) 315 319
8.625% due 10/25/21 300 306
7.634% due 01/25/22 (d) 3,282 3,332
7.786% due 03/25/22 (d) 6,691 6,745
8.494% due 05/25/22 (d) 3,264 3,337
6.888% due 06/25/23 (d) 4,922 4,930
7.500% due 08/25/23 334 335
9.450% due 05/25/24 19,693 19,907
10.621% due 05/25/24 (d) 3,791 3,836
6.688% due 07/25/24 (d) 2,553 2,558
7.100% due 12/25/24 1,500 1,521
7.750% due 03/25/25 5,000 5,000
7.580% due 07/25/28 (d) 14,001 14,272
7.258% due 10/25/28 (d) 31,282 32,152
7.338% due 10/25/28 (d) 15,647 16,082
7.113% due 05/25/29 (d) 5,821 5,826
7.575% due 05/25/29 (d) 7,433 7,352
Rural Housing Trust
3.330% due 10/01/28 493 454
Ryan Mortgage Acceptance Corp.
9.450% due 10/01/16 193 204
Ryland Acceptance Corp.
9.000% due 12/01/16 970 1,016
11.500% due 12/25/16 246 274
8.000% due 09/25/22 3,996 4,071
8.200% due 09/25/22 100 103
8.086% due 09/25/23 (d) 11,809 12,093
14.000% due 11/25/31 2,096 2,334
Ryland Mortgage Securties Corp.
7.137% due 03/25/22 (d) 4,874 4,880
7.908% due 07/25/22 (d) 42,000 42,643
8.132% due 08/25/22 (d) 4,472 4,554
7.500% due 08/25/24 79 80
7.358% due 08/25/29 (d) 9,299 9,555
6.869% due 10/25/31 (d) 16,627 16,616
Salomon Brothers Mortgage Securities
7.649% due 11/25/22 (d) 1,790 1,827
8.402% due 07/01/24 (d) 17,046 17,568
Santa Barbara Savings
9.500% due 11/20/18 5,403 5,452
Saxon Mortgage
7.780% due 09/25/22 (d) 3,291 3,361
8.048% due 08/25/23 (d) 51,690 53,144
8.313% due 09/25/24 (d) 14,829 15,362
Sears Mortgage
8.000% due 03/25/22 1,660 1,663
7.311% due 09/25/22 (d) 3,858 3,919
7.716% due 12/25/22 (d) 13,118 13,241
8.661% due 05/25/32 (d) 15,999 16,234
Securitized Asset Sales, Inc.
7.869% due 10/25/23 (d) 7,758 7,986
8.075% due 12/26/23 (d) 8,157 8,343
5.944% due 02/25/28 24,500 24,216
Security Pacific National Bank
6.302% due 03/01/18 (d) 159 154
Vendee Mortgage
7.000% due 02/15/00 6,231 6,298
7.750% due 03/15/16 600 615
7.750% due 05/15/18 550 568
Western Federal Savings & Loan
7.204% due 07/01/21 (d) 11,621 11,810
------------
1,965,443
============
Federal Home Loan Mortgage Corporation 6.9%
5.250% due 12/01/98 7 7
5.500% due 03/01/10 92 91
5.750% due 08/15/20 300 293
6.000% due 12/01/98-04/01/26(g) 5,300 5,103
6.114% due 07/01/27 (d) 348 347
6.500% due 06/01/03-11/13/27(g) 198,959 193,882
6.775% due 11/01/03 70 69
7.000% due 05/01/00-10/14/27 (d)(g) 212,799 212,375
7.190% due 10/25/23 (d) 32,246 33,617
7.275% due 12/11/06 3,000 2,989
7.500% due 05/01/99-01/01/27(d)(g) 18,967 19,365
7.588% due 09/01/23 (d) 4,496 4,620
7.593% due 04/01/23 (d) 1,364 1,434
7.625% due 01/01/19 (d) 20 21
7.633% due 05/01/23 (d) 6,409 6,740
7.640% due 10/25/17 (d) 5,868 5,966
7.708% due 11/01/23 (d) 2,171 2,242
7.750% due 04/01/07 54 55
7.780% due 04/01/24 (d) 1,946 2,046
7.789% due 07/01/23 (d) 4,562 4,685
7.822% due 10/01/23 (d) 1,219 1,257
7.861% due 09/01/23 (d) 33,535 34,563
7.887% due 07/01/22 (d) 2,313 2,426
7.901% due 10/01/23 (d) 2,556 2,661
7.902% due 11/01/23 (d) 1,255 1,292
7.930% due 04/01/24 (d) 18,689 19,689
7.931% due 05/01/23 (d) 3,397 3,570
7.938% due 08/01/23 (d) 31 32
7.954% due 11/01/23 (d) 1,971 2,035
7.971% due 06/01/24 (d) 3,493 3,632
8.000% due 10/01/07-06/01/26 (d)(g) 95,173 98,599
8.012% due 04/01/29 (d) 4,830 5,107
8.023% due 10/01/23 (d) 9,890 10,360
8.041% due 07/01/23 (d) 1,577 1,632
8.045% due 01/01/24 (d) 1,041 1,091
8.056% due 08/01/23 (d) 19,795 20,566
8.069% due 09/01/23 (d) 8,128 8,520
8.112% due 09/01/23 (d) 8,402 8,770
8.117% due 01/01/24 (d) 1,372 1,421
8.148% due 07/01/24 (d) 6,059 6,365
8.157% due 08/01/23 (d) 3,619 3,782
8.177% due 08/01/24 (d) 964 1,007
8.201% due 08/01/23 (d) 1,618 1,676
8.229% due 10/01/23 (d) 5,927 6,248
8.250% due 08/01/07-12/01/09(g) 247 254
8.500% due 09/01/01-10/14/27(g) 235,732 246,802
8.750% due 02/01/01-09/01/10(g) 491 506
8.900% due 11/15/20 30,173 32,530
9.000% due 01/01/02-09/15/20(g) 1,480 1,560
9.250% due 06/01/09-08/01/09(g) 137 145
9.500% due 08/01/01-06/01/21(g) 3,533 3,752
10.000% due 06/01/04-11/15/19(g) 1,957 2,088
10.250% due 03/15/09-05/01/09(g) 2,436 2,658
11.000% due 12/01/99-07/01/19(g) 1,374 1,533
11.250% due 10/01/09-09/01/15(g) 205 230
11.500% due 03/01/00-05/01/00(g) 30 32
12.500% due 07/01/99 6 6
</TABLE>
1997 Semiannual Report See accompanying notes 51
<PAGE>
Schedule of Investments (cont.)
Total Return Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
<S> <C> <C>
13.250% due 10/01/13 $ 85 $ 99
14.000% due 04/01/16 37 42
15.500% due 08/01/11-11/01/11(g) 22 25
16.250% due 05/01/11-11/01/11(g) 18 21
----------
1,034,531
----------
Federal Housing Administration 0.7%
7.125% due 03/01/34 4,496 4,413
7.211% due 12/01/21 3,386 3,392
7.317% due 05/01/19-11/01/19(g) 12,080 12,182
7.375% due 03/01/19-01/01/24(g) 17,698 17,845
7.399% due 02/01/21 2,717 2,816
7.430% due 12/01/16-10/01/23(g) 63,142 65,406
7.650% due 11/01/18 181 188
----------
106,242
----------
Federal National Mortgage Association 4.3%
5.000% due 02/25/03 1,586 1,581
5.650% due 04/25/05 200 198
6.000% due 03/25/03-03/01/24(g) 6,989 6,833
6.049% due 08/01/29(d) 10,917 10,870
6.069% due 05/01/27-05/01/29 (d)(g) 10,665 10,620
6.071% due 10/01/19-08/01/28 (d)(g) 8,462 8,414
6.083% due 09/01/24(d) 5,235 5,247
6.100% due 08/01/18(d) 404 405
6.103% due 02/01/18-06/01/20(d)(g) 9,119 9,136
6.112% due 05/01/36(d) 790 787
6.114% due 01/01/27-11/01/28(d)(g) 44,257 44,069
6.115% due 11/01/35(d) 27,393 27,274
6.250% due 07/25/07 100 99
6.366% due 12/01/27(d) 1,822 1,814
6.369% due 07/01/20 (d) 1,817 1,821
6.500% due 10/01/05-03/01/26(g) 475 473
6.750% due 08/01/03-09/25/22(g) 1,232 1,238
6.834% due 07/01/03 69 71
6.910% due 11/01/25(d) 15,186 15,756
6.950% due 03/25/26 300 303
7.000% due 05/25/99-11/01/26(g) 37,147 37,243
7.035% due 09/01/22(d) 4,173 4,302
7.057% due 09/01/22(d) 3,637 3,739
7.250% due 05/01/02-01/01/23(g) 11,620 11,704
7.299% due 09/01/25(d) 7,985 8,277
7.500% due 08/01/03-09/01/25(g) 98,372 100,518
7.592% due 01/01/26(d) 5,233 5,463
7.599% due 02/01/26(d) 2,839 2,966
7.646% due 03/01/26(d) 16,861 17,716
7.690% due 01/01/24(d) 1,730 1,818
7.750% due 06/01/09 237 245
7.812% due 11/01/25(d) 5,548 5,762
7.821% due 01/01/24(d) 1,478 1,549
7.825% due 03/01/25-11/01/25(d)(g) 20,907 21,826
7.829% due 05/01/26(d) 3,501 3,684
7.836% due 07/01/24(d) 24,937 25,824
7.896% due 12/01/23(d) 2,846 2,934
7.931% due 01/01/24(d) 424 449
7.932% due 11/01/23(d) 2,923 3,062
7.977% due 01/01/24(d) 6,577 6,904
8.000% due 09/01/01-12/01/26(g) 11,460 11,875
8.010% due 10/01/23(d) 1,055 1,112
8.023% due 09/01/24(d) 4,711 4,914
8.046% due 09/01/23(d) 7,112 7,430
8.066% due 11/01/23(d) 1,777 1,853
8.072% due 05/01/24(d) 6,676 6,958
8.104% due 12/01/23(d) 4,994 5,232
8.250% due 10/01/08-02/01/17(g) 1,014 1,058
8.500% due 07/01/99-12/01/25(g) 181,202 189,631
9.000% due 01/01/99-04/01/17(g) 2,740 2,874
9.500% due 12/01/06-07/01/22(g) 189 202
9.750% due 11/01/08 91 97
10.500% due 12/01/16-04/01/22(g) 1,145 1,257
12.000% due 05/01/16 23 27
13.000% due 09/01/13 64 75
13.250% due 09/01/11 23 26
14.500% due 11/01/11-01/01/13(g) 80 95
14.750% due 08/01/12-11/01/12(g) 352 408
15.500% due 10/01/12-12/01/12(g) 38 47
15.750% due 12/01/11-08/01/12(g) 190 222
16.000% due 09/01/12 229 290
--------
648,677
--------
Government National Mortgage Association 28.8%
5.500% due 07/20/27-09/20/27(d)(g) 49,500 49,468
5.650% due 10/15/12 13 12
6.000% due 10/15/08-06/20/27(d)(g) 614,658 597,723
6.500% due 10/15/08-12/17/27(d)(g) 1,358,211 1,340,520
6.875% due 12/20/22-12/20/25(d)(g) 384,967 395,801
7.000% due 07/15/08-09/20/27(d)(g) 341,792 351,015
7.125% due 07/20/22-09/20/24(d)(g) 353,261 363,849
7.375% due 06/20/21-05/20/26(d)(g) 297,579 307,226
7.500% due 08/15/05-07/15/26(g) 38,472 39,354
7.875% due 04/20/23(d) 830 863
8.000% due 08/15/05-11/19/27(g) 66,027 68,744
8.250% due 08/15/04-07/15/08(g) 671 706
8.500% due 06/15/01-11/19/27(g) 759,484 794,525
8.750% due 03/15/07-07/15/07(g) 175 184
9.000% due 09/15/01-07/20/22(g) 8,906 9,620
9.250% due 10/15/01-03/15/06(g) 515 538
9.500% due 04/15/01-08/15/23(g) 9,182 9,991
9.750% due 09/15/02-01/15/21(g) 382 409
10.000% due 06/20/01-03/20/20(g) 5,663 6,216
10.250% due 10/15/98-12/15/99(g) 141 143
10.500% due 06/15/04 144 157
10.750% due 08/15/98-09/15/98(g) 16 16
11.000% due 05/15/04-06/15/13(g) 94 103
11.250% due 03/15/01-12/20/15(g) 80 90
11.500% due 04/15/13-05/15/13(g) 16 18
12.000% due 03/20/99-03/15/15(g) 106 122
12.500% due 01/15/11 1 2
13.000% due 12/15/12-10/15/14(g) 46 54
13.250% due 10/20/14 20 23
13.500% due 11/15/12-12/15/12(g) 7 8
15.000% due 09/15/12-10/15/12(g) 21 25
16.000% due 01/15/12-04/15/12(g) 13 17
17.000% due 11/15/11-12/15/11(g) 123 149
---------
4,337,691
---------
Other Mortgage-Backed Securities 0.7%
Aames Mortgage Trust
7.275% due 05/15/20 405 413
Bank of America
9.000% due 03/01/08 100 99
Citibank, N.A.
8.000% due 07/25/18 102 105
Daiwa Mortgage
7.375% due 09/25/06(d) 1,654 1,666
DBL Mortgage Funding
9.500% due 08/01/19 24 25
First Interstate Bancorp
9.125% due 01/01/09 20 20
General Electric Credit Corp.
8.000% due 03/01/02 124 127
Georgia Federal Mortgage
10.500% due 11/01/14 2,026 2,073
German American Capital Corp.
8.360% due 09/30/02 4,624 4,718
6.499% due 07/01/18(d) 9,822 9,715
Great Western Savings & Loan
5.950% due 08/01/17(d) 221 214
Guardian
6.807% due 12/25/18(d) 467 402
Home Savings of America
8.464% due 08/01/06 99 98
5.795% due 05/25/27(d) 4,114 3,997
Imperial Savings & Loan
10.000% due 09/01/16 319 335
8.241% due 01/25/17 120 122
8.835% due 07/25/17(d) 434 435
LTC Commercial Corp.
7.100% due 11/28/12 3,951 3,886
Manufacturers Mortgage Housing
13.250% due 01/15/99 239 255
MDC Mortgage Funding
8.829% due 01/25/25(d) 1,977 2,017
Merrill Lynch Mortgage
9.250% due 12/15/09 39 40
7.920% due 06/15/21(d) 1,974 2,049
</TABLE>
52 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
<S> <C> <C>
Mid-State Trust
8.330% due 04/01/30 $ 34,217 $ 36,462
Resolution Trust Corp.
7.797% due 05/25/29 (d) 6,951 7,014
Ryland Acceptance Corp.
7.555% due 11/28/22 (d) 7,000 7,107
Salomon Brothers Mortgage Securities
11.500% due 09/01/15 1,861 2,042
Sears Mortgage
12.000% due 02/25/14 1,418 1,536
6.792% due 06/25/22 (d) 1,102 1,109
7.444% due 10/25/22 (d) 5,971 6,255
USGI Capital
8.500% due 11/25/07 12,536 12,876
Western Federal Savings & Loan
6.614% due 11/25/18 (d) 347 344
6.664% due 03/25/19 (d) 2,617 2,607
-----------
110,163
-----------
Stripped Mortgage-Backed Securities 0.2%
Federal Home Loan Mortgage Corp.(IO)
6.500% due 12/15/02 19 0
10.038% due 09/15/05 43 4
6.500% due 11/15/06 3,316 279
6.500% due 03/15/07 5,935 423
5.750% due 09/15/07 (d) 15,034 1,209
5.428% due 02/15/08 (d) 1,037 115
11.651% due 01/15/16 48 5
6.500% due 08/15/16 5,980 388
7.000% due 04/15/18 4,780 413
9.993% due 11/15/18 300 44
8.845% due 01/15/21 540 116
9.000% due 05/15/22 272 58
Federal Home Loan Mortgage Corp.(PO)
0.000% due 06/15/21 6,392 5,889
Federal National Mortgage Assn.(IO)
33.862% due 04/25/02 1 0
6.750% due 09/25/04 103 7
7.000% due 06/25/05 8 1
10.458% due 07/25/05 (d) 1,320 146
6.500% due 07/25/06 7,692 626
6.500% due 02/25/07 6,014 583
6.500% due 07/25/07 1,822 155
6.500% due 09/25/07 9,277 807
6.500% due 10/25/07 3,010 279
0.100% due 03/25/09 (d) 58,766 1,479
7.000% due 05/25/12 26 0
7.000% due 08/25/15 5,350 359
7.000% due 08/25/16 1,293 98
6.500% due 08/25/20 2,666 618
10.070% due 01/25/21 186 48
9.032% due 08/25/21 2,659 640
0.950% due 11/25/21 (d) 58,980 1,178
6.500% due 01/25/23 7,052 1,072
Federal National Mortgage Assn.(PO)
0.000% due 09/01/07 1,379 1,074
0.000% due 02/25/21 6,759 5,974
0.000% due 06/25/22 4,006 3,450
0.000% due 08/25/23 508 303
PaineWebber(IO)
13.595% due 08/01/19 322 116
Vendee Mortgage(IO)
0.542% due 06/15/23 226,156 5,126
-----------
33,082
-----------
Total Mortgage-Backed Securities 8,235,829 8,235,829
(Cost $8,138,133) -----------
- -------------------------------------------------------------------------------
ASSET-BACKED SECURITIES 1.6%
- -------------------------------------------------------------------------------
AFC Home Equity Loan Trust
7.455% due 10/25/26 (d) 13,135 13,315
Associates Manufactured Housing
7.000% due 03/15/27 900 924
Contimortgage Home Equity Loan Trust
6.990% due 03/15/21 350 351
Copelco Capital Funding Corp.
6.340% due 07/20/04 87 87
CSXT Trade Receivables
5.050% due 09/25/99 500 497
Delta Air Lines Equipment Trust
9.230% due 07/02/02 12,862 13,604
10.500% due 01/02/07 7,701 9,135
10.570% due 01/02/07 15,881 19,813
9.550% due 01/02/08 7,773 8,603
10.000% due 06/05/13 10,828 13,305
Discover Card Trust
6.031% due 10/16/13 (d) 400 408
EQCC Home Equity Loan Trust
6.100% due 10/15/03 23,720 23,810
6.710% due 07/15/11 330 333
Equivantage Home Equity Loan Trust
6.550% due 04/01/27 248 249
First Omni Bank
6.650% due 09/15/03 (d) 1,500 1,528
Ford Motor Credit Corp.
5.500% due 02/15/03 1,300 1,273
Green Tree Financial Group
7.150% due 07/15/27 1,025 1,054
Green Tree Home Improvement Loan Trust
6.100% due 01/15/28 14,547 14,580
IMC Home Equity Loan Trust
7.507% due 07/25/26 (d) 1,920 1,946
MBNA Master Credit Card Trust
6.050% due 11/15/02 245 245
Metlife Capital Equipment Loan Trust
6.850% due 05/20/08 (d) 320 324
NationsBank Auto Owner Trust
6.375% due 07/15/00 1,700 1,714
NationsBank Corp.
5.850% due 06/15/02 505 507
Newcourt Receivable Asset Trust
6.240% due 12/20/04 47 47
OSCC Home Equity
6.950% due 05/15/07 112 113
Saxon Asset Securities Trust
6.475% due 11/25/20 350 351
Sears Credit Account Master Trust
6.050% due 01/16/08 500 496
Standard Credit Card Master Trust
6.750% due 06/07/00 290 293
7.250% due 04/07/08 300 314
The Money Store Home Equity Trust
6.230% due 12/15/08 17,091 17,064
7.550% due 02/15/20 500 518
UCFC Home Equity Loan
6.381% due 07/15/10 250 251
United Air Lines Equipment Trust
9.200% due 03/22/08 4,466 4,877
10.360% due 11/13/12 7,000 8,783
10.020% due 03/22/14 4,500 5,404
10.850% due 07/05/14 34,111 43,591
10.125% due 03/22/15 14,300 17,951
9.060% due 06/17/15 5,000 5,805
9.210% due 01/21/17 2,000 2,288
----------
Total Asset-Backed Securities 235,751
(Cost $221,724) ----------
- --------------------------------------------------------------------------------
SOVEREIGN ISSUES 3.2%
- --------------------------------------------------------------------------------
Banco Nacional de Obra y Servicios
6.875% due 10/01/98 19,500 19,442
City of Buenos Aires
11.250% due 04/11/07 5,000 5,581
Hydro Quebec
5.750% due 04/15/99 (d) 10,000 9,984
9.400% due 02/01/21 500 623
9.500% due 11/15/30 2,370 3,003
Kingdom of Sweden
10.250% due 11/01/15 500 646
Providence of Newfoundland
9.000% due 06/01/19 500 604
Province of Nova Scotia
9.375% due 07/15/02 1,000 1,117
</TABLE>
1997 Semiannual Report See accompanying notes 53
<PAGE>
Schedule of Investments (cont.)
Total Return Fund
September 30, 1997(Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
<S> <C> <C>
Province of Ontario
6.125% due 06/28/00 $ 50 $ 50
7.750% due 06/04/02 200 212
7.625% due 06/22/04 1,000 1,064
7.000% due 08/04/05 1,000 1,032
Province of Quebec
8.780% due 03/30/98 400 406
7.500% due 07/15/02 6,000 6,251
Republic of Argentina
5.805% due 04/01/00 (d) 26,520 26,121
5.641% due 04/01/01 (d) 17,851 17,417
6.750% due 03/31/05 (d) 373,296 355,564
Republic of Poland
6.938% due 10/27/24 (d) 40,000 39,200
----------
Total Sovereign Issues 488,317
(Cost $430,196) ----------
- --------------------------------------------------------------------------------
FOREIGN CURRENCY-DENOMINATED ISSUES(c)(f) 3.3%
- --------------------------------------------------------------------------------
City of Montreal
11.500% due 09/20/00 C$ 7,000 5,916
Commonwealth of Australia
8.750% due 01/15/01 A$ 4,235 3,387
9.750% due 03/15/02 3,665 3,094
10.000% due 10/15/02 6,940 5,974
10.000% due 02/15/06 1,600 1,456
Commonwealth of Canada
6.500% due 06/01/04 C$ 1,000 764
4.250% due 12/01/26 (h) 197,908 148,690
Commonwealth of New Zealand
6.500% due 02/15/00 N$ 160,000 101,779
8.000% due 02/15/01 8,890 5,903
10.000% due 03/15/02 107,500 77,448
8.000% due 04/15/04 7,000 4,796
4.500% due 02/15/16 (h) 23,000 14,270
Petroleos Mexicanos
7.750% due 09/30/98 FF 5,000 869
Province of Saskatchewan
9.125% due 02/15/21 C$ 3,000 3,699
Republic of Argentina
3.353% due 04/01/01(d) AP 53,359 49,369
Republic of Poland
21.670% due 10/22/97 PZ 11,000 3,171
21.640% due 04/22/98 58,000 14,986
21.365% due 05/13/98 193,800 49,424
Reynolds, R.J.
6.875% due 11/22/00 DM 9,500 5,565
United Kingdom Gilt
7.250% due 03/30/98 BP 280 453
7.000% due 11/06/01 230 377
9.000% due 07/12/11 400 785
8.000% due 06/07/21 40 76
----------
Total Foreign Currency-Denominated Issues 502,251
(Cost $511,135) ----------
- --------------------------------------------------------------------------------
PURCHASED PUT OPTIONS 0.0%
- --------------------------------------------------------------------------------
Eurodollar December Futures(CME)
Strike @ 91.00 Exp. 12/15/97 $ 1,800,000 23
----------
Total Purchased Put Options 23
(Cost $32) ----------
- --------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK 0.0%
- --------------------------------------------------------------------------------
Shares
Unocal Capital Trust 402 25
----------
Total Convertible Preferred Stock 25
(Cost $21) ----------
- --------------------------------------------------------------------------------
PREFERRED STOCK 0.1%
- --------------------------------------------------------------------------------
Banco Bilbao Vizcaya International 266,217 7,554
California Federal Bank 50,000 5,714
Time Warner, Inc. 1 1
----------
Total Preferred Stock 13,269
(Cost $12,565) ----------
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 21.4%
- --------------------------------------------------------------------------------
Certificates of Deposit 3.7%
Bankers Trust
5.900% due 07/07/98 $ 100,000 $ 100,111
5.970% due 08/28/98 10,000 10,006
Citibank Indonesia
19.128% due 10/24/97(f) IR 20,000,000 6,043
Deutsche Bank
5.930% due 06/16/98 $ 250,000 250,000
Landesbank Hessen-Thueringen
5.930% due 06/30/98 185,000 185,000
----------
551,160
----------
Discount Notes 16.3%
Abbott Laboratories
5.490% due 10/24/97 5,900 5,879
American Express Credit
5.510% due 10/08/97 6,000 5,994
5.480% due 11/05/97 37,600 37,400
5.500% due 11/19/97 50,000 49,626
AT&T Capital Corp.
5.500% due 10/14/97 5,700 5,689
5.490% due 10/15/97 5,100 5,089
5.856% due 05/05/98 16,000 15,472
5.875% due 05/05/98 3,000 2,901
5.900% due 06/05/98 30,000 28,870
Caisse d'Amortissement
5.520% due 10/20/97 6,600 6,581
5.500% due 11/03/97 700 696
5.510% due 11/03/97 1,500 1,492
5.490% due 11/07/97 3,800 3,779
5.490% due 12/09/97 100 99
5.500% due 12/12/97 11,500 11,371
5.560% due 06/12/98 70,000 67,288
Campbell Soup Co.
5.490% due 10/07/97 500 500
5.480% due 10/08/97 8,300 8,291
5.540% due 06/12/98 50,000 48,063
Canadian Wheat Board
5.600% due 10/09/97 100 100
5.485% due 10/20/97 18,000 17,948
5.500% due 11/21/97 11,000 10,914
5.510% due 12/10/97 600 593
Dow Jones & Co., Inc.
5.500% due 10/06/97 2,400 2,398
E.I. Du Pont de Nemours
5.490% due 10/17/97 11,500 11,472
5.520% due 06/03/98 50,000 48,131
5.530% due 06/05/98 50,000 48,116
Electricite de France
5.490% due 11/05/97 1,000 995
5.490% due 12/11/97 6,700 6,626
Emerson Electric Co.
5.480% due 10/17/97 3,800 3,791
Export Development Corp.
5.500% due 10/16/97 500 499
Federal Farm Credit Bank
5.390% due 01/20/98 1,700 1,671
Federal Home Loan Mortgage Corp.
5.500% due 10/10/97 6,100 6,092
5.480% due 10/31/97 2,700 2,688
Federal National Mortgage Assn.
5.440% due 10/20/97 265 264
5.500% due 01/02/98 45 44
Florida Power Corp.
5.500% due 10/14/97 900 898
Ford Motor Credit Corp.
5.500% due 10/03/97 5,000 4,998
5.580% due 10/03/97 9,800 9,797
5.520% due 10/07/97 31,000 30,971
5.500% due 10/08/97 1,300 1,299
5.530% due 10/08/97 5,700 5,694
5.510% due 10/21/97 5,500 5,483
5.490% due 10/22/97 85,900 85,625
5.500% due 10/23/97 5,000 4,983
5.550% due 10/23/97 100 100
</TABLE>
54 PIMCO Funds See accompanying notes
<PAGE>
Schedule of Investments (Cont.)
Total Return Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
<S> <C> <C>
General Electric Capital Corp.
5.500% due 10/22/97 $ 40,000 $ 39,882
5.510% due 11/13/97 40,700 40,432
5.540% due 11/13/97 20,700 20,563
5.500% due 11/19/97 24,100 23,920
5.510% due 11/20/97 6,900 6,847
5.560% due 06/09/98 128,000 123,099
5.560% due 06/11/98 70,000 67,299
General Motors Acceptance Corp.
5.560% due 10/10/97 13,100 13,082
5.520% due 10/20/97 11,000 10,968
5.580% due 10/24/97 22,200 22,121
5.580% due 11/05/97 89,900 89,412
5.540% due 11/19/97 100,000 99,246
5.560% due 11/19/97 31,700 31,460
5.570% due 01/05/98 39,500 38,911
5.540% due 01/15/98 75,000 73,767
5.580% due 06/10/98 82,000 78,848
Gillette Co.
6.350% due 10/01/97 30,000 30,000
5.480% due 10/08/97 19,100 19,080
IBM Credit Corp.
5.520% due 10/16/97 11,300 11,274
5.500% due 10/21/97 9,800 9,770
5.480% due 11/05/97 14,900 14,821
5.500% due 11/05/97 30,500 30,337
5.500% due 11/19/97 300 298
Kellogg Co.
5.500% due 12/03/97 25,000 24,754
5.500% due 12/17/97 3,500 3,458
KFW International Finance, Inc.
5.480% due 10/20/97 1,200 1,197
5.510% due 10/27/97 7,600 7,570
5.510% due 10/29/97 25,000 24,893
5.490% due 11/13/97 4,800 4,769
5.490% due 11/18/97 56,700 56,285
5.500% due 11/19/97 32,000 31,761
5.490% due 11/20/97 37,400 37,115
5.510% due 12/03/97 900 891
Kimberly-Clark Corp.
5.500% due 10/29/97 29,325 29,200
Minnesota Mining & Manufacturing Co.
5.490% due 10/15/97 27,000 26,942
Motorola, Inc.
5.490% due 10/22/97 18,000 17,942
5.490% due 10/23/97 5,855 5,835
5.500% due 10/23/97 9,900 9,867
5.490% due 10/29/97 25,000 24,893
National Rural Utilities Cooperative
5.500% due 10/03/97 5,500 5,498
5.470% due 10/23/97 16,650 16,594
5.480% due 10/24/97 900 897
5.490% due 10/24/97 3,200 3,189
5.480% due 10/28/97 19,200 19,121
5.500% due 11/17/97 1,600 1,589
5.490% due 11/18/97 12,300 12,210
5.490% due 12/02/97 56,900 56,349
5.520% due 12/08/97 800 792
5.510% due 12/10/97 5,300 5,242
5.500% due 12/11/97 400 396
5.500% due 12/12/97 4,100 4,054
New Center Asset Trust
5.500% due 10/06/97 58,900 58,870
5.510% due 10/08/97 74,000 73,921
5.500% due 10/09/97 40,000 39,951
5.510% due 10/10/97 2,000 1,997
5.520% due 10/10/97 900 899
5.520% due 10/22/97 50,000 49,839
Oesterreichische
5.520% due 10/16/97 9,000 8,979
Ontario Hydro
5.500% due 12/08/97 3,000 2,968
5.500% due 12/15/97 28,000 27,673
Pfizer, Inc.
5.500% due 10/31/97 9,000 8,959
Pitney Bowes Credit Corp.
5.550% due 10/20/97 1,500 1,496
Procter & Gamble Co.
5.480% due 10/10/97 82,200 82,087
5.510% due 10/10/97 17,700 17,676
5.500% due 10/17/97 400 399
5.490% due 11/12/97 17,600 17,487
Tampa Electric
5.510% due 10/02/97 13,500 13,498
5.510% due 10/24/97 3,900 3,886
TCI Communications, Inc.
6.062% due 05/08/98 50,000 48,329
United Parcel Service Co.
5.480% due 11/03/97 200 199
Warner-Lambert
5.490% due 12/09/97 51,000 50,452
Wisconsin Electric Power & Light
5.520% due 10/30/97 4,800 4,779
5.520% due 11/06/97 2,100 2,088
============
2,462,442
============
Repurchase Agreements 0.2%
State Street Bank
5.000% due 10/01/97 31,202 31,202
(Dated 09/30/97. Collateralized by U.S. ------------
Treasury Note 6.250% 08/31/02 valued at
$31,826,681. Repurchase proceeds are
$31,206,334.)
U.S. Treasury Bills (b)(g) 1.2%
5.562% due 10/01/97-12/11/97 177,090 176,492
------------
Total Short-Term Instruments 3,221,296
(Cost $3,222,564) ============
Total Investments (a) 110.9% $16,681,706
(Cost $16,490,409)
Written Options (e) (0.0%) (356)
(Premiums $6,014)
Other Assets and Liabilities (Net) (10.9%) (1,635,675)
------------
Net Assets 100.0% $15,045,675
============
Notes to Schedule of Investments ($ in thousands):
(a) At September 30, 1997, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of
value over tax cost. $ 238,448
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (47,151)
------------
Unrealized appreciation-net $ 191,297
============
(b) Securities with an aggregate market value of $94,491
have been segregated with the custodian to cover margin
requirements for the following open future contracts at
September 30, 1997:
</TABLE>
<TABLE>
<CAPTION>
Unrealized
Appreciation/
Type Contracts (Depreciation)
- --------------------------------------------------------------------------------
<S> <C> <C>
Eurodollar December Futures (12/97) 638 $ 283
Eurodollar March Futures (03/98) 685 214
Eurodollar June Futures (06/98) 570 (18)
Eurodollar September Futures (09/98) 860 1,368
U.S. Municipal Bond (12/97) 1,972 3,214
U.K. Gilt Future (12/97) 1,599 6,846
U.S. Treasury 2 Year Note (12/97) 28 20
U.S. Treasury 5 Year Note (12/97) 2,904 2,323
U.S. Treasury 10 Year Note (12/97) 23,612 13,264
U.S. Treasury 30 Year Bond (12/97) 20,949 35,174
--------------
$ 62,688
==============
</TABLE>
1997 Semiannual Report See accompanying notes 55
<PAGE>
Schedule of Investments(Cont.)
Total Return Fund
September 30, 1997(Unaudited)
(c) Foreign forward currency contracts outstanding at September 30, 1997:
<TABLE>
<CAPTION>
Principal
Amount Unrealized
Covered Expiration Appreciation/
Type by Contract Month (Depreciation)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sell A$ 60 10/01/97 $ 0
Sell BP 403 10/01/97 25
Sell 3,096 11/01/97 (103)
Buy C$ 97,336 03/01/98 (568)
Sell 133,671 12/01/97 (262)
Sell 161,146 03/01/98 2,521
Buy DG 102 11/01/97 2
Buy DM 9,733 10/01/97 (5)
Sell 9,733 10/01/97 34
Sell 44,132 11/01/97 (976)
Sell 9,733 12/01/97 1
Sell FF 7,642 10/01/97 (24)
Sell 14,470 11/01/97 (113)
Sell N$ 22,340 11/01/97 18
Sell 194,393 12/01/97 (1,744)
Sell 81,997 01/01/98 154
Buy SF 481 10/01/97 1
Sell 481 10/01/97 (1)
Sell 3,631 11/01/97 (107)
Sell 481 01/01/98 (1)
-------------
$ (1,148)
=============
</TABLE>
(d) Variable Rate Security. The rate listed is as of September 30, 1997.
(e) Premiums received on Written Options:
<TABLE>
<CAPTION>
Premiums Market
Type Par Received Value
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Put - CME Eurodollar December Futures(12/97) $ 10,288 $ 3,254 $ 51
Strike @ 93.75 Exp. 12/26/97
Put - CME Eurodollar December Futures(12/97) 9,413 2,159 47
Strike @ 93.50 Exp. 12/26/97
Call - CBOT U.S. Treasury 30 Year Bond (12/97) 1,500 601 258
----------------------
Strike @ 120.00 Exp. 12/26/97 $ 6,014 $ 356
======================
</TABLE>
(f) Principal amount denoted in indicated currency:
A$ - Australian Dollar
AP - Argentine Peso
BP - British Pound
C$ - Canadian Dollar
DG - Dutch Guilder
DM - German Mark
FF - French Franc
IR - Indonesian Ruphia
N$ - New Zealand Dollar
PZ - Polish Zloty
SF - Swiss Franc
(g) Securities are grouped by coupon and represent a range of maturities.
(h) Principal amount of the security is adjusted for inflation.
(i) Security becomes interest bearing at a future date.
56 PIMCO Funds See accompanying notes
<PAGE>
Schedule of Investments
Total Return Fund II
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES 8.9%
- --------------------------------------------------------------------------------
<S> <C> <C>
Banking and Finance 0.3%
American General Finance
8.500% due 08/15/98 $ 30 $ 31
8.500% due 06/15/99 125 130
Ford Motor Credit Corp.
6.375% due 09/15/99 35 35
J.P. Morgan & Co.
0.000% due 04/01/98 160 155
Lehman Brothers, Inc.
8.875% due 11/01/98 500 514
Merrill Lynch & Co.
6.475% due 03/01/00 300 302
----------
1,167
----------
Industrials 6.6%
AMR Corp.
9.430% due 05/10/01 1,000 1,091
8.900% due 02/26/07 6,450 7,317
Time Warner, Inc.
7.975% due 08/15/04 3,345 3,529
8.110% due 08/15/06 6,690 7,153
8.180% due 08/15/07 6,690 7,211
----------
26,301
----------
Utilities 2.0%
Long Island Lighting Co.
9.000% due 11/01/22 7,250 8,096
----------
Total Corporate Bonds and Notes 35,564
(Cost $31,487) ----------
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES 0.3%
- --------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.
7.410% due 05/18/05 530 534
Federal National Mortgage Assn.
8.500% due 02/01/05 500 523
----------
Total U.S. Government Agencies 1,057
(Cost $1,054) ----------
- --------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES 70.1%
- --------------------------------------------------------------------------------
Collateralized Mortgage Obligations 14.4%
American Southwest Financial
8.450% due 09/01/17 246 245
Capstead Mortgage Corp.
8.900% due 12/25/21 583 610
Chase Mortgage Financial Corp.
8.000% due 06/25/24 68 68
Collateralized Mortgage Securities Corp.
9.000% due 04/25/10 952 951
Dime Savings
7.147% due 11/01/18 (c) 163 150
Donaldson, Lufkin & Jenrette
11.000% due 08/01/19 342 390
Federal Home Loan Mortgage Corp.
5.950% due 07/15/03 130 128
7.000% due 04/25/15 130 131
8.800% due 12/01/15 261 288
9.250% due 11/15/19 69 73
9.000% due 12/15/20 3,062 3,249
7.000% due 07/15/22 13,793 13,200
Federal National Mortgage Assn.
6.000% due 06/25/01 97 96
8.500% due 03/25/17 76 76
9.000% due 06/25/18 46 48
6.000% due 09/25/18 76 75
9.000% due 09/25/18 980 1,005
9.250% due 07/25/19 5,819 6,257
7.000% due 09/25/20 100 101
Guaranteed Mortgage Corp.
9.300% due 07/20/19 1,000 1,067
Independent National Mortgage Corp.
8.303% due 11/25/24 (c) 10,202 10,472
Norwest Mortgage
12.375% due 01/01/14 390 415
Ryland Acceptance Corp.
8.000% due 09/25/22 3,856 3,928
8.086% due 09/25/23 (c) 4,143 4,243
Saxon Mortgage
7.780% due 09/25/22 (c) 2,698 2,755
7.823% due 01/25/23 (c) 4,070 4,111
Sears Mortgage
8.661% due 05/25/32 (c) 3,246 3,294
----------
57,426
----------
Federal Home Loan Mortgage Corporation 6.2%
6.500% due 11/13/27 250 244
7.000% due 03/01/07 53 53
7.250% due 03/01/06 332 336
7.500% due 08/01/09 34 34
7.768% due 02/01/23 (c) 1,319 1,374
8.000% due 04/01/25-12/01/25 (c)(d) 7,907 8,179
8.063% due 12/01/22 (c) 13,528 14,190
8.250% due 03/01/08-05/01/08 (d) 187 194
8.500% due 12/01/01 5 5
9.500% due 02/01/11 111 118
10.500% due 04/01/01 95 102
15.500% due 06/01/11 22 25
----------
24,854
----------
Federal Housing Administration 0.2%
5.596% due 10/01/19 379 382
8.829% due 05/01/19 556 587
----------
969
----------
Federal National Mortgage Association 13.8%
7.000% due 08/01/09 370 374
7.267% due 02/01/23 (c) 5,524 5,623
7.500% due 04/01/24 15,049 15,363
7.733% due 04/01/24 (c) 3,109 3,221
7.750% due 10/01/07 423 435
7.758% due 07/01/20 (c) 1,562 1,644
7.977% due 01/01/24 (c) 3,289 3,452
8.000% due 10/01/05 475 492
8.034% due 12/01/23 (c) 1,297 1,360
8.500% due 12/01/01-06/01/26 (d) 20,281 21,207
9.000% due 12/01/01 1,091 1,143
11.000% due 09/01/10 291 324
13.750% due 10/01/10-12/01/14 (d) 122 143
14.500% due 03/01/13 9 11
14.750% due 10/01/12-11/01/12 (d) 28 35
----------
54,827
----------
Government National Mortgage Association 35.2%
6.500% due 01/15/24-10/20/27 (d) 52,122 51,172
7.000% due 01/20/24-01/20/25 (c)(d) 28,103 28,932
7.125% due 09/20/24 (c) 3,186 3,278
7.375% due 06/20/23 (c) 5,591 5,781
7.500% due 03/15/24-11/19/27 (d) 5,859 5,952
8.500% due 10/20/27-11/19/27 (d) 43,000 44,961
12.000% due 10/15/12-10/15/15 (d) 48 57
----------
140,133
----------
Other Mortgage-Backed Securities 0.3%
Bank of America
9.000% due 03/01/08 81 80
Federal Home Loan Mortgage Corp.
11.875% due 06/15/13 261 299
Security Pacific National Bank
8.500% due 03/01/17 87 86
Western Federal Savings & Loan
6.664% due 03/25/19 (c) 566 564
----------
1,029
----------
Total Mortgage-Backed Securities 279,238
(Cost $276,027) ----------
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES 10.1%
- --------------------------------------------------------------------------------
AFC Home Equity Loan Trust
7.455% due 10/25/26 (c) 3,284 3,329
Conti Mortgage Home Equity Loan Trust
6.190% due 10/15/11 (c) 5,000 4,992
6.230% due 10/15/11 (c) 4,075 4,069
EQCC Home Equity Loan Trust
6.100% due 10/15/03 20,000 20,076
</TABLE>
1997 Semiannual Report See accompanying note 57
<PAGE>
Schedule of Investments (Cont.)
Total Return Fund II
September 30, 1997(Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
<S> <C> <C>
United Air Lines Equipment Trust
9.190% due 12/24/13 $ 7,213 $ 7,659
---------
Total Asset-Backed Securities 40,125
(Cost $40,206) ---------
- --------------------------------------------------------------------------------
PURCHASED CALL OPTIONS 1.0%
- --------------------------------------------------------------------------------
U.S. Treasury Bond(OTC)
6.500% due 05/31/01
Strike @ 93.53 Exp. 10/21/97 48,900 4,013
---------
Total Purchased Call Options 4,013
(Cost $3,828) ---------
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 38.8%
- --------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT 8.8%
Bankers Trust
5.900% due 07/07/98 20,000 20,022
5.900% due 07/14/98 15,000 15,011
---------
35,033
---------
DISCOUNT NOTES 28.4%
Abbott Laboratories
5.490% due 10/22/97 1,100 1,096
American Express Credit
5.500% due 11/12/97 3,000 2,981
Ameritech Corp.
5.490% due 10/14/97 2,700 2,695
5.490% due 12/04/97 13,000 12,870
E.I. Du Pont de Nemours
5.480% due 10/08/97 2,300 2,298
Federal Home Loan Bank
5.450% due 10/15/97 245 244
Federal Home Loan Mortgage Corp.
5.480% due 10/31/97 9,000 8,959
Ford Motor Credit Corp.
5.510% due 10/15/97 2,700 2,694
General Electric Capital Corp.
5.520% due 11/05/97 8,800 8,753
5.570% due 11/13/97 1,400 1,391
5.500% due 11/19/97 2,400 2,382
General Motors Acceptance Corp.
5.560% due 10/10/97 3,200 3,196
5.540% due 11/03/97 1,400 1,393
5.580% due 11/05/97 2,000 1,989
5.560% due 11/19/97 2,600 2,580
5.580% due 01/14/98 1,000 984
IBM Credit Corp.
5.500% due 11/07/97 1,700 1,690
Kellogg Co.
5.500% due 12/17/97 1,500 1,482
Kentucky Utility Co.
5.520% due 10/02/97 2,500 2,500
National Rural Utilities Cooperative
5.480% due 10/28/97 1,500 1,494
5.540% due 12/18/97 17,300 17,090
New Center Asset Trust
5.510% due 10/22/97 100 100
5.530% due 11/05/97 4,900 4,874
5.510% due 11/19/97 1,900 1,886
5.540% due 11/19/97 6,300 6,252
5.540% due 12/17/97 2,000 1,976
Pfizer, Inc.
5.490% due 10/08/97 1,000 999
SBC Communications, Inc.
5.500% due 11/07/97 14,700 14,617
United Parcel Service Co.
5.480% due 11/03/97 1,000 995
---------
112,460
---------
REPURCHASE AGREEMENTS 1.2%
State Street Bank
5.000% due 10/01/97 4,969 4,969
(Dated 09/30/97. Collateralized by U.S. ---------
Treasury Note 6.250% 08/31/02 valued
at $5,068,750. Repurchase proceeds are
$4,969,690.)
U.S. Treasury Bills (b)(d) 0.4%
5.016% due 10/02/97-12/11/97 1,790 1,783
---------
Total Short-Term Instruments 154,245
(Cost $154,212) ---------
Total Investments (a) 129.2% $ 514,242
(Cost $506,814)
Other Assets and Liabilities (Net) (29.2%) (116,250)
---------
Net Assets 100.0% $ 397,992
=========
Notes to Schedule of Investments($ in thousands):
(a) At September 30, 1997, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value
over tax cost. $ 7,863
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (435)
---------
Unrealized appreciation-net $ 7,428
=========
(b) Securities with an aggregate market value of $1,783
have been segregated with the custodian to cover margin
requirements for the following open future contracts at
September 30, 1997:
</TABLE>
<TABLE>
<CAPTION>
Unrealized
Appreciation/
Type Contracts (Depreciation)
- --------------------------------------------------------------------------------
<S> <C> <C>
Eurodollar December Futures (12/97) 60 $ 26
Eurodollar March Futures (03/98) 60 27
Eurodollar June Futures (06/98) 60 18
U.S. Treasury 5 Year Note (12/97) 267 104
U.S. Treasury 10 Year Note (12/97) 462 511
U.S. Treasury 30 Year Note (12/97) 374 (46)
---------
$ 640
=========
</TABLE>
(c) Variable Rate Security. The rate listed is as of September 30, 1997.
(d) Securities are grouped by coupon and represent a range
of maturities.
58 PIMCO Funds See accompanying notes
<PAGE>
Schedule of Investments
Total Return Fund III
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES 12.4%
- --------------------------------------------------------------------------------
<S> <C> <C>
BANKING AND FINANCE 7.5%
AT&T Capital Corp.
5.880% due 11/05/97 $ 10,000 $ 10,002
Bear Stearns
6.050% due 08/25/00 (d) 10,000 10,000
Spieker Properties
6.950% due 12/15/02 2,000 2,000
---------
22,002
---------
Utilities 4.9%
Cleveland Electric Illuminating Co.
8.750% due 11/15/05 3,500 3,536
Commonwealth Edison
6.250% due 02/01/98 3,000 3,001
Connecticut Light & Power
7.250% due 07/01/99 990 989
Long Island Lighting Co.
8.900% due 07/15/19 3,000 3,196
North Atlantic Energy
9.050% due 06/01/02 583 589
Ohio Power Co.
8.250% due 03/15/02 2,000 2,138
Public Service of New Hampshire
9.170% due 05/15/98 800 815
---------
14,264
---------
Total Corporate Bonds and Notes 36,266
(Cost $36,079) ---------
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES 7.1%
- --------------------------------------------------------------------------------
Federal Home Loan Bank
6.550% due 09/19/03 572 571
Federal Home Loan Mortgage Corp.
5.950% due 06/19/98 5,000 5,013
7.500% due 07/01/11 893 916
8.000% due 01/01/12 449 466
8.000% due 09/01/25 2,096 2,167
Federal National Mortgage Assn.
9.150% due 04/10/98 300 306
5.870% due 10/15/03 50 49
7.930% due 09/20/06 1,250 1,276
Government Trust Certificate - Greece
8.000% due 05/15/98 71 72
Student Loan Marketing Assn.
6.000% due 06/30/98 10,000 10,028
---------
Total U.S. Government Agencies 20,864
(Cost $20,808) ---------
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS 1.0%
- --------------------------------------------------------------------------------
U.S. Treasury Bonds
10.375% due 11/15/09 200 247
U.S. Treasury Notes
6.000% due 09/30/98 2,000 2,007
5.000% due 02/15/99 515 510
---------
Total U.S. Treasury Obligations 2,764
(Cost $2,761) ---------
- --------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES 55.7%
- --------------------------------------------------------------------------------
Collateralized Mortgage Obligations 9.1%
Chase Mortgage Financial Corp.
9.500% due 04/25/24 101 101
CMC Securities Corp.
7.735% due 04/25/25 due 2,588 2,653
Collateralized Mortgage Obligation Trust
8.000% due 01/01/17 4,460 4,530
Federal Home Loan Mortgage Corp.
8.000% due 05/15/00 97 99
8.000% due 02/15/15 1,856 1,891
Federal National Mortgage Assn.
7.750% due 07/25/19 247 251
7.000% due 09/25/21 5,279 5,227
Greenwich
8.767% due 11/25/24 (d) 461 472
PNC Mortgage Securities Corp.
7.500% due 06/25/10 322 321
Prudential Home
8.449% due 11/25/23 (d) 1,496 1,537
Residential Accredit Loans, Inc.
7.050% due 01/25/26 2,000 1,970
7.250% due 01/25/26 3,000 2,963
Resolution Trust Corp.
8.835% due 12/25/23 2,500 2,642
Ryland Acceptance Corp.
8.086% due 09/25/23 (d) 1,036 1,061
Sears Mortgage
8.661% due 05/25/32 (d) 974 988
---------
26,706
---------
Federal Home Loan Mortgage Corporation 0.9%
8.000% due 02/01/06 322 334
8.063% due 12/01/22 (d) 2,178 2,285
---------
2,619
---------
Federal National Mortgage Association 3.5%
7.500% due 04/01/24 3,762 3,841
8.000% due 07/01/23-07/01/26 (f) 5,276 5,468
8.250% due 07/01/17 141 147
8.500% due 02/01/07 682 709
9.000% due 07/01/05 45 47
---------
10,212
---------
Government National Mortgage Association 40.6%
6.000% due 12/20/26 (d) 978 1,002
6.500% due 09/15/23-12/17/27 (f) 52,533 52,099
6.875% due 10/20/24-10/20/25 (d)(f) 10,424 10,706
7.000% due 01/20/24-08/20/25 (d)(f) 16,522 16,981
7.125% due 09/20/23 (d) 6,168 6,353
7.375% due 06/20/22 (d) 3,481 3,602
8.500% due 06/15/25-10/20/27 (f) 26,261 27,485
10.250% due 02/15/17 652 729
12.750% due 02/20/15-03/20/15 (f) 5 6
---------
118,963
---------
Other Mortgage-backed Securities 1.1%
Guardian
6.878% due 07/25/20 (d) 992 696
Resolution Trust Corp.
7.797% due 05/25/29 (d) 2,389 2.410
---------
3,106
---------
Stripped Mortgage-backed Securities 0.5%
Federal Home Loan Mortgage Corp.(IO)
6.500% due 04/15/22 5,880 724
Resolution Trust Corp.(PO)
0.000% due 09/25/00 896 818
---------
1,542
---------
Total Mortgage-Backed Securities 163,148
(Cost $161,352) ---------
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES 4.8%
- --------------------------------------------------------------------------------
Conti Mortgage Home Equity Loan Trust
6.230% due 10/15/11 (d) 4,075 4,069
EQCC Home Equity Loan Trust
6.100% due 10/15/03 10,000 10,038
---------
Total Asset-Backed Securities 14,107
(Cost $14,075) ---------
- --------------------------------------------------------------------------------
SOVEREIGN ISSUES 2.2%
- --------------------------------------------------------------------------------
Province of Quebec
8.800% due 04/15/03 1,000 1,105
Republic of Argentina
6.750% due 03/31/05 (d) 5,760 5,486
---------
Total Sovereign Issues 6,591
(Cost $5,517) ---------
- --------------------------------------------------------------------------------
FOREIGN CURRENCY-DENOMINATED ISSUES(c)(e) 1.1%
- --------------------------------------------------------------------------------
Commonwealth of Canada
8.500% due 04/01/02 C$ 2,000 1,637
Province of Saskatchewan
11.000% due 01/09/01 2,000 1,702
---------
Total Foreign Currency-Denominated Issues 3,339
(Cost $3,220) ---------
</TABLE>
1997 Semiannual Report See accompanying notes 59
<PAGE>
Schedule of Investments(Cont.)
Total Return Fund III
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 30.2%
- --------------------------------------------------------------------------------
<S> <C> <C>
Certificates of Deposit 2.7%
Bankers Trust
5.900% due 07/14/98 $ 8,000 $ 8,006
----------
Discount Notes 26.1%
Caisse d'Amortissement
5.490% due 11/07/97 2,000 1,989
Canadian Wheat Board
5.490% due 11/14/97 3,400 3,377
5.490% due 11/18/97 1,100 1,092
Ford Motor Credit Corp.
5.500% due 10/03/97 2,000 1,999
5.520% due 10/07/97 1,600 1,599
5.510% due 10/09/97 2,500 2,497
General Electric Capital Corp.
5.520% due 11/05/97 500 497
5.500% due 11/12/97 7,400 7,353
5.560% due 06/11/98 1,000 961
General Motors Acceptance Corp.
5.520% due 10/20/97 1,700 1,695
5.580% due 11/05/97 900 895
5.510% due 11/12/97 5,200 5,167
KFW International Finance, Inc.
5.480% due 10/20/97 1,600 1,595
5.500% due 11/20/97 11,900 11,809
Kimberly-Clark Corp.
5.490% due 10/08/97 10,900 10,888
National Rural Utilities Cooperative
5.500% due 10/02/97 4,700 4,699
5.500% due 10/03/97 4,500 4,499
5.500% due 12/12/97 200 198
New Center Asset Trust
5.500% due 10/06/97 1,500 1,499
5.500% due 10/09/97 3,600 3,596
5.520% due 10/10/97 4,400 4,394
Ontario Hydro
5.500% due 12/08/97 4,000 3,958
----------
76,256
==========
Repurchase Agreements 0.9%
State Street Bank
5.000% due 10/01/97 2,748 2,748
(Dated 09/30/97. Collateralized by U.S. ----------
Treasury Note 6.000% 05/31/98 valued at
$2,803,019. Repurchase proceeds are
$2,748,382.)
U.s. Treasury Bills (b)(f) 0.5%
5.009% due 10/02/97-12/11/97 1,595 1,584
----------
Total Short-Term Instruments 88,594
(Cost $88,587) ==========
Total Investments (a) 114.5% $ 335,673
(Cost $332,399)
Other Assets and Liabilities (Net) (14.5%) (42,540)
----------
Net Assets 100.0% $ 293,133
==========
- --------------------------------------------------------------------------------
Notes to Schedule of Investments ($ in thousands):
(a) At September 30, 1997, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 3,785
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (511)
----------
Unrealized appreciation-net $ 3,274
==========
</TABLE>
(b) Securities with an aggregate market value of $1,584
have been segregated with the custodian to cover margin
requirements for the following open future contracts at
September 30, 1997:
<TABLE>
<CAPTION>
Unrealized
Contracts Appreciation
- --------------------------------------------------------------------------------
<S> <C> <C>
Eurodollar December Futures (12/97) 50 $ 17
Eurodollar March Futures (03/98) 50 18
Eurodollar June Futures (06/98) 50 19
U.S. Treasury 5 Year Note (12/97) 120 61
U.S. Treasury 10 Year Note (12/97) 488 534
U.S. Treasury 10 Year Note (12/97) 450 261
----------
$ 910
==========
</TABLE>
(c) Foreign forward currency contracts outstanding at September 30, 1997:
<TABLE>
<CAPTION>
Principal
Amount
Covered Expiration Unrealized
Type by Contract Month Appreciation
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sell C$ 4,325 03/98 $ 72
</TABLE>
(d) Variable Rate Security. The rate listed is as of September 30, 1997.
(e) Principal amount denoted in indicated currency:
C$ - Canadian Dollar
(f) Securities are grouped by coupon and represent a range of maturities.
60 PIMCO Funds See accompanying notes
<PAGE>
Schedule of Investments
Total Return Mortgage Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES 84.5%
- --------------------------------------------------------------------------------
<S> <C> <C>
Collateralized Mortgage Obligations 28.9%
Donaldson, Lufkin & Jenrette
6.500% due 04/25/24 $ 41 $ 41
Federal Home Loan Mortgage Corp.
5.500% due 06/15/13 195 195
4.500% due 03/15/21 128 116
3.500% due 12/15/22 25 18
6.500% due 05/15/23 92 81
7.000% due 08/15/23 66 60
6.500% due 03/15/24 87 76
Federal National Mortgage Assn.
5.600% due 07/25/14 150 149
6.750% due 04/25/21 200 197
6.750% due 09/25/23 43 40
----------
973
----------
Federal Home Loan Mortgage Corporation 21.1%
7.000% due 02/01/27 715 714
----------
Government National Mortgage Association 33.3%
7.000% due 02/20/18 (b) 87 90
7.500% due 05/15/27-08/15/27 (c) 1,165 1,034
----------
1,124
----------
Stripped Mortgage-backed Securities 1.2%
Federal National Mortgage Assn.(IO)
7.000% due 12/25/16 553 41
----------
Total Mortgage-Backed Securities 2,852
(Cost $2,834) ----------
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 22.2%
- --------------------------------------------------------------------------------
Discount Notes 17.8%
Abbott Laboratories
5.490% due 10/22/97 100 100
BellSouth Telecommunications, Inc.
5.500% due 10/23/97 100 100
Caisse d'Amortissement
5.520% due 10/20/97 100 100
Ford Motor Credit Corp.
5.580% due 10/03/97 100 100
IBM Credit Corp.
5.500% due 10/09/97 100 100
KFW International Finance, Inc.
5.510% due 11/06/97 100 99
----------
599
----------
Repurchase Agreements 4.4%
State Street Bank
5.000% due 10/01/97 148 148
(Dated 09/30/97. Collateralized by U.S. Treasury ----------
Note 6.000% 05/31/98 valued at $153,375.
Repurchase proceeds are $148,021.)
Total Short-Term Instruments 747
(Cost $746) ----------
Total Investments (a) 106.7% $ 3,598
(Cost $3,580)
Other Assets and Liabilities (Net)(6.7%) (227)
----------
Net Assets 100.0% $ 3,371
----------
- --------------------------------------------------------------------------------
Notes to Schedule of Investments($ in thousands):
(a) At September 30, 1997, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 20
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (1)
----------
Unrealized appreciation-net $ 19
----------
</TABLE>
(b) Variable Rate Security. The rate listed is as of September 30, 1997.
(c) Securities are grouped by coupon and represent a range of maturities.
1997 Semiannual Report See accompanying notes 61
<PAGE>
Schedule of Investments
Moderate Duration Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES 23.0%
- --------------------------------------------------------------------------------
<S> <C> <C>
Banking and Finance 17.2%
Ahmanson (H.F.) & Co.
6.180% due 01/15/98 $ 700 $ 701
AT&T Capital Corp.
6.060% due 02/20/98 1,000 1,002
5.900% due 06/05/98 1,500 1,444
Banco Latino
6.220% due 03/26/98 500 500
Bear Stearns
6.070% due 08/29/00 (d) 2,300 2,300
Capital One Bank
6.730% due 06/04/98 550 553
First USA Bank
6.160% due 03/31/98 500 501
Korean Export-Import Bank
6.500% due 10/06/99 1,800 1,796
Lehman Brothers, Inc.
7.410% due 05/25/99 500 509
Okobank
7.375% due 09/27/49 (d) 1,150 1,173
Salomon, Inc.
9.480% due 04/01/98 800 813
6.331% due 06/27/01 (d) 1,250 1,253
----------
12,545
----------
Industrials 2.8%
Amerco, Inc.
7.230% due 01/21/27 500 513
Building Materials Corp.
0.000% due 07/01/04 (h) 250 233
RJR Nabisco
8.625% due 12/01/02 480 506
TCI Communications, Inc.
6.359% due 04/03/02 (d) 250 250
7.550% due 09/02/03 500 510
----------
2,012
----------
Utilities 3.0%
Beaver Valley Funding Corp.
8.250% due 06/01/03 467 478
8.625% due 06/01/07 700 733
CMS Energy
8.125% due 05/15/02 750 770
Texas-New Mexico Power
12.500% due 01/15/99 200 214
----------
2,195
----------
Total Corporate Bonds and Notes 16,752
(Cost $17,063) ----------
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS 5.1%
- --------------------------------------------------------------------------------
Treasury Inflation Protected Securities
3.375% due 01/15/07 (g) 2,026 1,989
U.S. Treasury Notes
5.625% due 02/28/01 100 99
6.000% due 02/15/26 1,700 1,597
----------
Total U.S. Treasury Obligations 3,685
(Cost $3,648) ----------
- --------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES 51.3%
- --------------------------------------------------------------------------------
Collateralized Mortgage Obligations 24.5%
Federal Home Loan Mortgage Corp.
7.000% due 05/15/04 1,000 1,021
5.500% due 11/15/15 1,302 1,300
8.000% due 02/15/27 365 383
Federal National Mortgage Assn.
7.000% due 12/25/99 500 505
4.850% due 11/25/02 1,064 1,057
7.000% due 09/25/21 2,598 2,573
6.500% due 03/25/23 2,000 1,908
General Electric Capital Mortgage
6.000% due 02/25/24 515 507
Government National Mortgage Assn.
7.500% due 04/20/27 2,038 1,997
Residential Funding
7.500% due 06/25/27 1,844 1,869
7.000% due 08/25/27 2,818 2,824
Resolution Trust Corp.
9.400% due 05/25/24 1,300 1,307
Securitized Asset Sales, Inc.
7.410% due 09/25/24 627 630
----------
17,881
----------
Federal Home Loan Mortgage Corporation 1.4%
7.000% due 10/14/27 1,000 998
----------
Federal Housing Administration 8.1%
7.430% due 04/01/22-07/01/22 (f) 5,660 5,801
7.450% due 03/31/27 86 88
----------
5,889
----------
Federal National Mortgage Association 8.8%
6.071% due 03/01/29 (d) 155 154
6.100% due 08/01/18 (d) 1,400 1,403
6.103% due 06/01/18-08/01/18 (d)(f) 563 563
6.110% due 09/01/17 (d) 1,449 1,451
6.114% due 11/01/18-08/01/27 (d)(f) 2,048 2,042
6.115% due 11/01/35 (d) 796 792
----------
6,405
----------
Government National Mortgage Association 8.5%
5.500% due 05/20/27 (d) 1,478 1,471
6.000% due 11/20/26 2,917 2,966
6.500% due 11/20/25 (d) 873 897
6.875% due 11/20/17-12/20/17 (d)(f) 689 710
7.000% due 03/20/20 (d) 158 163
----------
6,207
----------
Total Mortgage-Backed Securities 37,380
(Cost $36,874) ----------
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES 1.6%
- --------------------------------------------------------------------------------
IMC Home Equity Loan Trust
5.828% due 03/25/27 (d) 385 385
LIBOR-Index Certificates
7.359% due 09/16/01 (d) 800 800
----------
Total Asset-Backed Securities 1,185
(Cost $1,185) ----------
- --------------------------------------------------------------------------------
SOVEREIGN ISSUES 2.5%
- --------------------------------------------------------------------------------
Republic of Argentina
6.750% due 03/31/05 (d) 1,920 1,829
----------
Total Sovereign Issues 1,829
(Cost $1,800) ----------
- --------------------------------------------------------------------------------
FOREIGN CURRENCY-DENOMINATED ISSUES (c)(e) 0.7%
- --------------------------------------------------------------------------------
Commonwealth of New Zealand
4.500% due 02/15/16 (g) N$ 800 496
----------
Total Foreign Currency-Denominated Issues 496
(Cost $523) ----------
- --------------------------------------------------------------------------------
PREFERRED STOCK 1.6%
- --------------------------------------------------------------------------------
<CAPTION>
Shares
<S> <C> <C>
El Paso Electric Co. 10,285 1,144
----------
Total Preferred Stock 1,144
(Cost $1,166) ----------
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 14.8%
- --------------------------------------------------------------------------------
<CAPTION>
Principal
Amount
(000s)
<S> <C> <C>
Certificates of Deposit 1.0%
Banco Latino
6.430% due 05/28/98 $ 700 700
---------
Discount Notes 12.9%
E.I. Du Pont de Nemours
5.480% due 10/02/97 600 600
</TABLE>
62 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
<S> <C> <C>
Electricite de France
5.490% due 11/05/97 $ 1,100 $ 1,094
Ford Motor Credit Corp.
5.510% due 10/17/97 2,500 2,494
General Motors Acceptance Corp.
5.510% due 11/12/97 2,000 1,987
KFW International Finance, Inc.
5.490% due 11/13/97 300 298
National Rural Utilities Cooperative
5.520% due 12/08/97 1,600 1,583
New Center Asset Trust
5.520% due 11/12/97 100 99
TCI Communications, Inc.
6.062% due 05/08/98 400 387
United Parcel Service Co.
5.500% due 12/03/97 900 891
----------
9,433
----------
Repurchase Agreements 0.7%
State Street Bank
5.000% due 10/01/97 530 530
(Dated 09/30/97. Collateralized by U.S. Treasury ----------
Note 5.750% 03/31/98 valued at $541,350.
Repurchase proceeds are 530,074.)
U.S. Treasury Bills (b)(f) 0.2%
5.092% due 10/02/97-12/11/97 170 170
----------
Total Short-Term Instruments 10,833
(Cost $10,446) ----------
Total Investments (a) 100.6% $ 73,304
(Cost $72,705)
Other Assets and Liabilities (Net) (0.6%) (460)
----------
Net Assets 100.0% $ 72,844
----------
Notes to Schedule of Investments($ in thousands):
(a) At September 30, 1997, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 677
----------
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (78)
----------
Unrealized appreciation-net $ 599
----------
(b) Securities with an aggregate market value of $170
have been segregated with the custodian to cover margin
requirements for the following open future contracts at
September 30, 1997:
</TABLE>
<TABLE>
<CAPTION>
Unrealized
Type Contracts Appreciation
- --------------------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury 5 Year Note (12/97) 144 $ 106
</TABLE>
(c) Foreign forward currency contracts outstanding at September 30, 1997:
<TABLE>
<CAPTION>
Principal
Amount
Covered Expiration Unrealized
Type by Contract Month Depreciation
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sell N$ 763,000 12/97 $ (4)
</TABLE>
(d) Variable Rate Security. The rate listed is as of September 30, 1997.
(e) Principal amount denoted in indicated currency:
N$ - New Zealand Dollar
(f) Securities are grouped by coupon and represent a range of maturities.
(g) Principal amount of the security is adjusted for inflation.
(h) Security becomes interest bearing at a future date.
1997 Semiannual Report See accompanying notes 63
<PAGE>
Schedule of Investments
Low Duration Fund
September 30, 1997(Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES 15.9%
- --------------------------------------------------------------------------------
<S> <C> <C>
Banking and Finance 5.1%
American General Finance
6.000% due 02/23/98 $ 1,000 $ 999
Associates Corp. of North America
7.250% due 05/15/98 500 504
7.500% due 05/15/99 1,000 1,023
AT&T Capital Corp.
6.490% due 05/17/99 10,000 10,060
Banc One Corp.
7.250% due 08/01/02 500 517
Bancomer
8.000% due 07/07/98 4,000 4,026
BankAmerica Corp.
7.200% due 09/15/02 100 103
7.875% due 12/01/02 100 106
Chase Manhattan Corp.
8.000% due 04/15/02 100 100
Chrysler Financial Corp.
6.100% due 11/03/97 2,000 2,001
8.330% due 02/02/98 5,490 5,539
6.280% due 07/17/98 3,000 3,012
Citicorp
9.750% due 08/01/99 100 106
Comercia Bank
6.750% due 05/12/98 500 502
Commercial Credit Co.
5.500% due 05/15/98 1,000 998
Ford Motor Credit Corp.
6.520% due 02/03/98 1,000 1,002
6.130% due 04/05/99 (d) 1,000 994
7.500% due 11/15/99 100 103
Kansallis-Osake
7.850% due 09/30/43 (d) 13,500 13,716
Kemper Corp.
8.800% due 11/01/98 100 103
Lehman Brothers, Inc.
0.000% due 05/16/98 2,000 1,926
6.120% due 05/14/99 (d) 5,000 5,000
7.625% due 07/15/99 (d) 50 51
Okobank
7.200% due 10/29/49 (d) 750 765
PaineWebber
7.000% due 03/01/00 50 51
Salomon, Inc.
5.890% due 11/10/97 20,000 20,006
7.000% due 01/20/98 2,500 2,509
5.980% due 02/02/98 23,500 23,487
6.360% due 04/01/98 1,725 1,727
9.375% due 04/15/98 550 560
6.125% due 05/15/98 12,820 12,822
6.700% due 12/01/98 1,250 1,259
7.125% due 08/01/99 1,050 1,067
SGE Associates
8.070% due 07/20/00 17,697 18,281
Signet Bank Corp.
5.938% due 04/15/98 (d) 2,865 2,855
Smith Barney Holdings
7.875% due 10/01/99 100 103
Toyota Motor Credit Corp.
4.693% due 02/15/02 (d) 11,600 11,247
Transamerica Financial
6.940% due 04/27/98 700 703
----------
149,933
----------
Industrials 7.7%
Amerco, Inc.
6.850% due 09/18/98 7,000 7,034
American Home Products
7.700% due 02/15/00 100 103
AMR Corp.
9.500% due 07/15/98 1,000 1,027
9.270% due 08/13/98 2,000 2,054
8.100% due 11/01/98 2,000 2,044
8.730% due 11/02/98 3,000 3,079
9.910% due 03/01/01 2,500 2,760
9.440% due 05/15/01 5,000 5,468
9.125% due 10/24/01 1,000 1,091
Arkla, Inc.
9.200% due 12/18/97 $ 1,000 $ 1,007
Bausch & Lomb
6.480% due 12/17/97 275 275
Delta Air Lines
7.790% due 12/01/98 4,449 4,525
10.430% due 01/02/11 850 1,044
E.I. Du Pont de Nemours
8.500% due 02/10/98 100 101
Enserch Corp.
8.875% due 03/15/01 3,000 3,040
Ford Motor Co.
9.000% due 09/15/01 500 547
Hertz Corp.
6.625% due 07/15/00 100 101
IBM Corp.
6.375% due 06/15/00 100 101
Minnesota Mining & Manufacturing Co.
6.250% due 03/29/99 200 201
Nabisco, Inc.
8.300% due 04/15/99 2,900 2,980
8.000% due 01/15/00 16,675 17,286
Noranda, Inc.
6.563% due 08/18/00 (d) 1,000 1,013
Philip Morris Co.
7.500% due 01/15/02 200 206
RJR Nabisco
8.625% due 12/01/02 4,000 4,214
Sears Roebuck & Co.
9.250% due 04/15/98 5,750 5,853
TCI Communications, Inc.
6.419% due 03/11/03 (d) 3,000 3,002
Tenet Healthcare Corp.
7.875% due 01/15/03 2,300 2,355
Time Warner, Inc.
7.450% due 02/01/98 27,410 27,551
7.975% due 08/15/04 21,247 22,416
8.110% due 08/15/06 42,495 45,434
8.180% due 08/15/07 42,495 45,804
United Air Lines
6.750% due 12/01/97 11,875 11,894
USX Corp.
7.750% due 01/21/98 2,000 2,012
----------
227,622
----------
Utilities 3.1%
Alabama Power
7.250% due 08/01/07 100 102
Bell Atlantic Financial
6.000% due 06/01/98 500 500
Central Power & Light
6.625% due 01/01/98 100 100
Cleveland Electric Illuminating Co.
9.450% due 12/01/97 11,400 11,463
8.330% due 10/30/98 1,500 1,531
8.170% due 11/30/98 1,000 1,019
9.300% due 07/26/99 1,500 1,569
9.375% due 03/01/17 3,000 3,132
CMS Energy
9.500% due 10/01/97 (d) 23,175 23,177
Consolidated Natural Gas Co.
8.750% due 06/01/99 400 417
Consumers Energy Corp.
8.750% due 02/15/98 5,000 5,045
El Paso Electric Co.
7.250% due 02/01/99 1,000 1,005
Gulf States Utilities
9.720% due 07/01/98 166 170
Long Island Lighting Co.
7.625% due 04/15/98 3,000 3,022
7.300% due 07/15/99 4,500 4,573
6.250% due 07/15/01 3,275 3,240
Louisiana Power & Light Co.
7.740% due 07/01/02 10,500 10,755
Mississippi Power & Light
8.800% due 04/01/05 1,000 1,010
</TABLE>
64 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
<S> <C> <C>
New York State Electric
6.500% due 09/01/98 $ 2,350 $ 2,356
North Atlantic Energy
9.050% due 06/01/02 5,288 5,339
Northern States Power Co.
5.875% due 10/01/97 100 100
Public Service Electric & Gas
6.000% due 01/01/98 1,000 1,000
Texas Utilities Co.
5.750% due 07/01/98 1,300 1,299
Toledo Edison Co.
9.300% due 04/01/98 5,000 5,077
United Illuminating
7.375% due 01/15/98 1,000 1,005
9.760% due 01/02/06 2,839 2,934
Western Massachusetts Electric
6.750% due 03/01/98 792 789
----------
91,729
----------
Total Corporate Bonds and Notes 469,284
(Cost $458,870) ----------
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES 7.8%
- --------------------------------------------------------------------------------
Federal Farm Credit Bank
5.630% due 05/26/98 1,945 1,946
Federal Home Loan Bank
5.090% due 05/11/98 2,000 1,995
6.010% due 12/04/98 4,000 4,001
5.030% due 04/19/99 (d) 3,000 2,970
6.270% due 12/20/99 1,000 999
Federal Home Loan Mortgage Corp.
7.300% due 10/28/02 100 100
8.440% due 10/27/04 500 499
Federal National Mortgage Assn.
5.350% due 04/01/98 5,930 5,920
5.830% due 06/12/98 200,000 200,301
5.200% due 07/10/98 1,500 1,496
5.720% due 02/16/99 (d) 5,000 4,996
5.720% due 01/29/01 2,000 1,970
4.875% due 12/25/16 1,000 991
Small Business Administration
7.750% due 01/25/13 (d) 1,049 1,084
7.250% due 02/25/14 (d) 1,368 1,439
Tennessee Valley Authority
0.000% due 10/15/98 1,000 942
----------
Total U.S. Government Agencies 231,649
(Cost $230,932) ----------
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS 0.1%
- --------------------------------------------------------------------------------
U.S. Treasury Notes
8.125% due 02/15/98 (b) 180 182
6.250% due 06/30/98 1,000 1,005
5.875% due 03/31/99 1,000 1,002
6.375% due 05/15/99 500 505
6.000% due 10/15/99 1,000 1,005
6.375% due 08/15/02 500 508
----------
Total U.S. Treasury Obligations 4,207
(Cost $4,203) ----------
- --------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES 71.3%
- --------------------------------------------------------------------------------
Collateralized Mortgage Obligations 11.6%
American Southwest Financial
5.100% due 06/02/99 11,273 11,181
Bear Stearns
8.200% due 09/25/22 876 883
8.000% due 05/25/23 110 110
Capstead Mortgage Corp.
7.400% due 04/25/18 3,160 3,160
7.800% due 02/25/22 353 354
7.500% due 02/25/23 3,105 3,141
Chase Mortgage Financial Corp.
10.000% due 11/25/09 1,166 1,208
8.000% due 06/25/24 11 11
7.500% due 10/25/24 47 47
Citicorp Mortgage Securities, Inc.
8.500% due 06/25/06 1,659 1,662
9.500% due 10/25/15 983 999
Collateralized Mortgage Obligation Trust
6.187% due 01/20/03 (d) 26 25
7.985% due 05/01/17 17,359 17,671
9.500% due 06/25/20 699 736
Conseco Commercial Mortgage
9.700% due 07/15/04 533 535
Countrywide
6.500% due 03/25/24 1,274 1,276
6.125% due 01/25/35 (d) 16,046 15,704
Dime Savings
7.147% due 11/01/18 (d) 3,230 2,970
Donaldson, Lufkin & Jenrette
11.000% due 08/01/19 1,810 2,064
8.057% due 05/25/24 (d) 4,747 4,802
Federal Home Loan Mortgage Corp.
9.000% due 01/15/04 248 249
9.000% due 12/15/05 406 410
10.000% due 09/15/09 14 15
12.500% due 09/30/13 1,515 1,742
5.400% due 08/15/14 2,849 2,846
7.000% due 04/25/15 1,734 1,744
11.000% due 11/30/15 6,852 7,972
8.000% due 04/15/19 263 263
10.000% due 07/15/19 525 581
8.500% due 09/15/19 1,415 1,429
5.650% due 11/15/19 1,473 1,470
9.000% due 11/15/19 2,803 2,919
7.950% due 02/15/20 1,864 1,884
9.000% due 02/15/20 589 592
8.250% due 03/15/20 210 212
7.500% due 04/15/20 2,900 2,978
8.000% due 04/15/20 2,500 2,581
10.000% due 05/15/20 350 386
7.500% due 12/15/20 2,000 2,042
9.000% due 12/15/20 9,877 10,479
9.500% due 01/15/21 2,819 3,023
8.000% due 04/15/21 3,336 3,460
9.000% due 05/15/21 539 568
Federal National Mortgage Assn.
8.950% due 05/25/03 115 120
9.000% due 07/25/03 844 874
9.400% due 07/25/03 182 191
5.750% due 02/25/05 3,960 3,950
8.500% due 09/25/06 279 279
6.875% due 06/25/09 4,083 4,112
7.250% due 07/25/15 886 884
5.750% due 04/25/16 3,840 3,793
8.000% due 01/25/19 16 16
7.500% due 02/25/19 36 36
8.000% due 05/25/19 498 499
8.750% due 05/25/19 158 163
9.000% due 05/25/19 507 508
9.300% due 05/25/19 71 73
9.000% due 07/25/19 651 670
9.000% due 08/25/19 854 855
9.500% due 03/25/20 2,786 3,274
9.500% due 05/25/20 1,450 1,663
8.000% due 07/25/20 6,117 6,196
8.500% due 01/25/21 20 20
9.000% due 03/25/21 8,945 9,607
9.000% due 04/25/21 300 320
8.000% due 03/25/22 192 198
5.000% due 01/25/24 466 457
8.500% due 03/18/27 3,152 3,195
First Boston Corp.
7.050% due 07/25/23 215 214
Fleet Mortgage
7.200% due 10/25/23 1,185 1,176
General Electric Capital Mortgage
7.750% due 04/25/07 1,227 1,251
6.350% due 03/25/17 22,637 22,635
6.500% due 07/25/18 403 404
</TABLE>
1997 Semiannual Report See accompanying notes 65
<PAGE>
Schedule of Investments (Cont.)
Low Duration Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
<S> <C> <C>
Glendale Federal Savings & Loan
7.503% due 03/25/30 (d) $ 2,814 $ 2,852
Greenwich
8.767% due 11/25/24 (d) 2,581 2,643
Homestead Mortgage Acceptance Corp.
11.450% due 09/01/15 1,518 1,655
Housing Securities, Inc.
6.750% due 02/25/21 17,827 17,873
Independent National Mortgage Corp.
8.303% due 11/25/24 (d) 6,666 6,839
8.250% due 03/25/25 5,021 5,038
Nomura Asset Securities Corp.
6.625% due 01/25/09 4,871 4,885
Norwest Mortgage
12.375% due 01/01/14 260 276
12.500% due 02/01/14 609 651
12.250% due 04/01/14 460 484
Prudential Bache
6.103% due 09/01/18 (d) 56 55
8.400% due 03/20/21 8,615 8,929
Prudential Home
6.500% due 04/25/00 71 71
7.500% due 09/25/07 878 897
7.000% due 11/25/07 2,172 2,186
7.000% due 06/25/23 3,014 2,987
6.750% due 01/25/24 631 630
Prudential Securities
8.000% due 12/25/20 1,087 1,105
Residential Accredit Loans, Inc.
7.300% due 12/25/26 2,734 2,755
Residential Asset Securitization Trust
7.050% due 07/25/26 15,423 15,470
Residential Funding
5.887% due 07/01/19 (d) 1,438 1,380
7.069% due 09/01/19 (d) 322 315
Resolution Trust Corp.
6.767% due 09/25/19 (d) 2,721 2,722
5.954% due 01/25/21 (d) 228 224
6.890% due 07/25/21 (d) 28 29
6.389% due 09/25/21 (d) 1,235 1,226
6.902% due 10/25/21 (d) 1,469 1,471
6.988% due 03/25/22 (d) 3,156 3,178
10.000% due 05/25/22 206 210
7.250% due 10/25/23 324 324
9.500% due 05/25/24 371 373
6.900% due 02/25/27 (d) 6,982 6,721
6.058% due 09/25/27 (d) 2,790 2,723
9.000% due 09/25/28 313 332
Ryland Acceptance Corp.
8.000% due 03/01/18 2,728 2,788
Salomon Brothers Mortgage Securities
7.269% due 12/25/17 (d) 2,860 2,860
6.665% due 01/25/18 (d) 47 47
9.549% due 10/25/18 (d) 7,122 7,403
8.233% due 03/25/24 (d) 4,425 4,562
Sears Mortgage
7.861% due 08/25/23 (d) 1,038 1,061
8.661% due 05/25/32 (d) 811 823
Securitized Asset Sales, Inc.
6.750% due 08/25/25 14,211 14,294
7.500% due 10/25/25 16,407 16,515
Shearson Lehman
9.600% due 03/25/21 1,329 1,351
Westam Mortgage Financial Corp.
6.500% due 10/02/17 6,195 6,210
--------
343,440
--------
Federal Home Loan Mortgage Corporation 6.4%
5.000% due 08/01/98 2 2
5.500% due 05/01/98-04/01/07 (f) 65 64
6.000% due 03/01/11-03/01/26 (f) 2,964 2,828
6.072% due 01/01/30-12/01/30 (d)(f) 4,458 4,431
6.092% due 10/01/30 (d) 460 457
6.100% due 01/01/17-06/01/17 (d)(f) 773 769
6.103% due 09/01/15-06/01/30 (d)(f) 5,079 5,052
6.104% due 01/01/20 (d) 878 875
6.114% due 11/01/14-08/01/19 (d)(f) 2,735 2,726
6.118% due 02/01/16 (d) 152 151
6.125% due 01/01/20 (d) 322 320
6.133% due 05/01/17 (d) 271 270
6.500% due 01/01/02-11/13/27 (f) 50,047 48,734
7.000% due 01/01/17-10/14/27 (d)(f) 13,087 13,057
7.125% due 03/01/17 (d) 381 389
7.250% due 07/01/07 30 30
7.500% due 09/01/06 179 182
7.592% due 02/01/20 (d) 4,746 4,940
7.885% due 03/01/24 (d) 323 339
7.902% due 11/01/23 (d) 2,703 2,830
7.919% due 11/01/22 (d) 3,847 4,009
7.971% due 06/01/24 (d) 2,183 2,270
7.990% due 07/01/18 (d) 651 686
8.000% due 07/01/06-10/14/27 (f) 71,184 73,715
8.023% due 10/01/23 (d) 4,053 4,244
8.035% due 09/01/23 (d) 870 918
8.045% due 01/01/24 (d) 4,182 4,381
8.063% due 12/01/22 (d) 2,178 2,285
8.117% due 01/01/24 (d) 2,740 2,838
8.250% due 10/01/07-11/01/07 (f) 60 63
8.500% due 07/01/01-10/14/27 (f) 2,166 2,258
8.750% due 02/01/01-04/01/02 (f) 134 138
9.000% due 05/01/02-07/01/04 (f) 70 73
9.250% due 07/01/01 11 11
9.500% due 03/01/01-12/01/04 (f) 163 171
9.750% due 03/01/01-11/01/08 (f) 1,384 1,485
10.000% due 04/01/01 11 12
10.500% due 07/01/00-02/01/16 (f) 120 128
10.750% due 10/01/00-08/01/11 (f) 678 746
11.250% due 10/01/14 7 8
11.500% due 10/01/15 2 3
11.750% due 11/01/10-08/01/15 (f) 19 22
14.000% due 09/01/12-12/01/12 (f) 6 8
--------
188,918
--------
Federal Housing Administration 0.5%
5.871% due 11/01/19 930 937
6.950% due 04/01/14 1,777 1,783
7.430% due 10/01/19-12/01/21 (f) 12,029 12,356
9.680% due 02/01/24 387 415
--------
15,491
--------
Federal National Mortgage Association 3.1%
6.000% due 05/01/11-12/25/18 (f) 453 448
6.131% due 04/01/18 (d) 8,473 8,375
6.288% due 04/25/22 (d) 496 501
6.500% due 06/01/08 40 39
6.889% due 01/01/21 (d) 958 971
7.000% due 04/01/02-09/01/07 (f) 322 326
7.217% due 11/01/17 (d) 667 682
7.389% due 07/01/17 (d) 1,076 1,116
7.422% due 11/01/18 (d) 437 459
7.863% due 10/01/24 (d) 12,730 13,180
7.882% due 04/01/24 (d) 5,693 5,974
7.939% due 01/01/24 (d) 6,781 7,129
8.000% due 03/01/04-12/01/24 (f) 4,583 4,784
8.129% due 07/01/23 (d) 3,913 4,076
8.500% due 03/01/08-08/01/26 (f) 35,927 37,693
9.000% due 10/01/97-08/01/98 (f) 699 706
10.000% due 02/01/04-06/01/19 (f) 3,104 3,352
10.500% due 06/01/05-11/01/05 (f) 475 510
11.000% due 10/01/98-09/01/00 (f) 21 22
11.250% due 12/01/10-10/01/15 (f) 279 312
12.000% due 01/01/15-10/01/15 (f) 16 18
12.750% due 02/01/14-11/01/14 (f) 111 130
13.000% due 07/01/15 9 10
13.250% due 09/01/11 25 28
13.500% due 04/01/14 9 11
15.500% due 10/01/12-12/01/12 (f) 84 106
15.750% due 12/01/11 49 57
16.000% due 09/01/12-12/01/12 (f) 29 37
--------
91,052
--------
Government National Mortgage Association 46.5%
5.000% due 08/20/26 (d) 982 982
5.500% due 07/20/26 (d) 1,722 1,733
6.000% due 01/20/26-09/20/26 (d)(f) 25,585 26,034
6.500% due 05/15/23-07/20/27 (d)(f) 244,572 241,456
</TABLE>
66 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
<S> <C> <C>
6.875% due 10/20/23-10/20/25(d)(f) $105,123 $110,164
7.000% due 03/15/11-11/15/25(d)(f) 34,062 35,057
7.125% due 08/20/22-09/20/24(d)(f) 97,369 100,347
7.375% due 05/20/22-06/20/25(d)(f) 47,682 49,284
7.500% due 02/15/22-12/15/23(f) 107,664 110,141
8.000% due 07/15/04-11/19/27(f) 216,258 223,153
8.500% due 01/15/25-11/19/27(f) 459,798 480,414
9.750% due 07/15/13-02/15/20(f) 1,299 1,406
10.750% due 10/15/98 12 12
11.750% due 07/15/13-09/15/15(f) 178 197
12.000% due 06/20/15 29 34
13.500% due 05/15/11-11/15/12(f) 39 47
16.500% due 12/15/11 1 1
----------
1,380,462
----------
Other Mortgage-Backed Securities 1.8%
First Boston Mortgage Securities Corp.
8.300% due 08/20/09 357 364
Fleet Finance, Inc.
5.450% due 03/20/23 1 1
Glendale Federal Savings & Loan
11.000% due 03/01/10 26 27
Great Western Savings & Loan
6.150% due 12/01/17 (d) 545 532
Guardian
7.168% due 10/25/19 (d) 276 205
6.854% due 12/25/19 (d) 339 214
6.926% due 12/25/19 (d) 2,210 1,462
6.963% due 02/25/20 (d) 1,470 808
6.878% due 07/25/20 (d) 1,353 949
Home Savings of America
5.795% due 05/25/27 (d) 2,315 2,249
5.867% due 09/25/28 (d) 1,610 1,573
Imperial Savings & Loan
8.835% due 07/25/17 (d) 61 61
9.900% due 02/25/18 614 651
MDC Mortgage Funding
8.829% due 01/25/25 (d) 2,072 2,114
Resolution Trust Corp.
7.113% due 05/25/19 (d) 8,235 8,143
7.070% due 08/25/19 (d) 6,450 6,444
10.337% due 08/25/21 (d) 1,157 1,209
6.231% due 10/25/28 (d) 3,345 3,387
7.337% due 05/25/29 (d) 3,544 3,574
Ryland Acceptance Corp.
7.555% due 11/28/22 (d) 10,068 10,222
Salomon Brothers Mortgage Securities
11.500% due 09/01/15 931 1,021
8.148% due 12/25/17 (d) 449 439
Sears Mortgage
12.000% due 02/25/14 150 162
7.444% due 10/25/22 (d) 5,613 5,879
Western Federal Savings & Loan
6.438% due 06/25/18 (d) 55 54
6.614% due 11/25/18 (d) 278 275
10.069% due 02/01/20 (d) 75 79
----------
52,098
----------
Stripped Mortgage-Backed Securities 1.4%
Federal Home Loan Mortgage Corp.(IO)
7.000% due 07/15/04 1,529 54
6.250% due 09/15/04 5,683 290
6.000% due 02/15/06 8,684 458
9.982% due 07/15/06 78 1,037
10.195% due 08/15/06 20 306
11.944% due 12/15/06 39 773
6.000% due 10/15/07 3,355 270
6.000% due 02/15/08 9,337 818
7.000% due 07/15/12 1,441 18
6.500% due 02/25/13 4,256 133
6.500% due 08/25/13 7,968 364
7.000% due 08/15/18 7,321 1,545
7.500% due 12/15/18 6,327 714
7.000% due 04/15/19 7,370 516
6.500% due 05/15/19 16,282 1,796
6.500% due 06/15/19 16,269 1,484
10.496% due 04/15/21 46 731
6.500% due 04/15/22 9,742 1,200
7.000% due 05/15/23 $ 930 $ 143
4.000% due 01/15/24 20,919 5,324
Federal National Mortgage Assn.(IO)
6.000% due 07/25/05 3,821 213
7.272% due 09/25/06 65 1,126
6.000% due 02/25/08 11,029 1,056
256.000% due 11/01/08 50 315
6.500% due 03/25/09 12,101 2,098
0.100% due 03/25/09(d) 39,373 991
8.815% due 06/25/16 94 819
9.987% due 12/25/18 23 203
7.500% due 03/25/19 8,159 1,109
6.500% due 05/25/19 10,000 2,234
6.500% due 04/25/20 31,204 3,226
7.000% due 05/25/21 16,240 1,953
8.598% due 02/25/22 50 1,001
6.500% due 03/25/23 9,281 1,390
4.875% due 03/25/24(d) 15,713 1,270
Federal National Mortgage Assn.(PO)
0.000% due 07/25/22 4,510 3,886
0.000% due 09/25/22 91 74
Prudential Home(IO)
0.300% due 04/25/09(d) 95,202 876
Resolution Trust Corp.(PO)
0.000% due 09/25/00 896 818
----------
42,632
----------
Total Mortgage-Backed Securities 2,114,093
(Cost $2,098,513) ----------
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES 0.1%
- --------------------------------------------------------------------------------
Delta Air Lines Equipment Trust
10.430% due 01/02/11 960 1,179
SCFC Boat Loan Trust
7.050% due 04/15/07 59 59
United Air Lines Equipment Trust
10.850% due 02/19/15 1,500 1,945
----------
Total Asset-Backed Securities 3,183
(Cost $3,026) ----------
- --------------------------------------------------------------------------------
SOVEREIGN ISSUES 2.3%
- --------------------------------------------------------------------------------
Banco Nacional de Obra y Servicios
6.875% due 10/01/98 10,000 9,970
Nacional Financiera
8.094% due 12/15/97(d) 2 1
5.875% due 02/17/98 2,000 1,976
6.250% due 12/03/98(d) 1,500 1,485
Petroleos Mexicanos
8.250% due 02/04/98 5,000 5,050
Province of Quebec
5.563% due 10/26/01(d) 250 248
Republic of Argentina
5.805% due 04/01/00(d) 1,318 1,298
6.750% due 03/31/05(d) 40,416 38,496
United Mexican States
5.820% due 06/28/01 10,000 9,323
----------
Total Sovereign Issues 67,847
(Cost $64,522) ----------
- --------------------------------------------------------------------------------
FOREIGN CURRENCY-DENOMINATED ISSUES(c)(e) 1.4%
- --------------------------------------------------------------------------------
Banco Nacional de Comercio Exterior
8.000% due 05/06/98 DM 3,500 2,022
Commonwealth of Canada
8.750% due 12/01/05 C$ 1,150 998
4.250% due 12/01/26 (g) 51,538 38,721
----------
Total Foreign Currency-Denominated Issues 41,741
(Cost $43,023) ----------
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 32.2%
- --------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT 2.2%
Bankers Trust
5.900% due 07/14/98 $39,500 39,528
</TABLE>
1997 Semiannual Report See accompanying notes 67
<PAGE>
Schedule of Investments
Low Duration Fund
September 30, 1997(Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
<S> <C> <C>
Landesbank Hessen-Thueringen
5.930% due 06/30/98 $25,000 $ 25,000
----------
64,528
==========
Discount Notes 29.4%
Abbott Laboratories
5.500% due 10/24/97 10,000 9,965
American Express Credit
5.500% due 11/19/97 14,100 13,994
Ameritech Corp.
5.480% due 10/24/97 19,900 19,830
AT&T Capital Corp.
5.500% due 10/14/97 3,200 3,194
BellSouth Telecommunications, Inc.
5.480% due 10/20/97 1,800 1,795
Caisse d'Amortissement
5.520% due 10/20/97 3,000 2,991
5.560% due 06/12/98 30,000 28,837
Canadian Wheat Board
5.485% due 10/20/97 500 499
5.490% due 11/04/97 38,000 37,803
5.490% due 11/18/97 6,800 6,750
5.500% due 11/21/97 10,100 10,021
Federal Home Loan Mortgage Corp.
5.480% due 10/31/97 12,100 12,045
Ford Motor Credit Corp.
5.500% due 10/03/97 31,300 31,290
5.500% due 10/10/97 5,000 4,993
5.490% due 10/15/97 30,000 29,936
5.510% due 10/15/97 13,900 13,870
5.500% due 10/23/97 13,400 13,355
General Electric Capital Corp.
5.500% due 11/12/97 23,100 22,952
5.500% due 11/19/97 19,800 19,652
5.520% due 11/19/97 47,000 46,647
5.560% due 06/09/98 23,000 22,119
5.560% due 06/11/98 29,000 27,881
General Motors Acceptance Corp.
5.520% due 10/08/97 50,000 49,946
5.520% due 10/20/97 4,700 4,686
5.540% due 11/03/97 37,000 36,812
5.510% due 11/12/97 4,000 3,974
5.730% due 02/23/98 5,000 4,888
5.580% due 06/10/98 18,000 17,308
Gillette Co.
5.490% due 11/17/97 12,000 11,914
IBM Credit Corp.
5.500% due 11/19/97 10,000 9,925
Kellogg Co.
5.500% due 12/03/97 4,200 4,159
KFW International Finance, Inc.
5.510% due 11/13/97 13,500 13,411
5.490% due 11/18/97 23,400 23,229
5.500% due 11/19/97 23,000 22,828
National Rural Utilities Cooperative
5.590% due 10/16/97 5,500 5,487
5.480% due 10/20/97 25,000 24,928
5.500% due 11/04/97 2,200 2,189
5.500% due 11/06/97 16,500 16,409
5.510% due 11/13/97 700 695
5.500% due 12/12/97 10,700 10,580
New Center Asset Trust
5.500% due 10/06/97 16,400 16,387
5.510% due 10/08/97 4,000 3,996
5.500% due 10/09/97 14,000 13,983
5.510% due 10/22/97 5,800 5,781
5.530% due 11/05/97 40,600 40,382
5.510% due 11/19/97 22,700 22,530
5.540% due 12/17/97 20,000 19,760
Oesterreichische
5.500% due 12/08/97 50,000 49,470
Ontario Hydro
5.500% due 12/15/97 10,000 9,883
Procter & Gamble Co.
5.490% due 11/12/97 32,400 32,192
United Parcel Service Co.
5.500% due 11/05/97 5,600 5,570
Western Australia Treasury Corp.
5.490% due 11/20/97 $ 8,100 $ 8,038
----------
871,759
==========
Repurchase Agreements 0.6%
State Street Bank
5.000% due 10/01/97 17,131 17,131
(Dated 09/30/97. Collateralized by U.S. Treasury ----------
Note 6.250% 08/31/02 valued at $17,477,050.
Repurchase proceeds are $17,133,379.)
U.S. Treasury Bills(b) 0.0%
5.085% due 11/13/97 225 224
----------
Total Short-Term Instruments 953,642
(Cost $953,556) ==========
Total Investments(a) 131.1% $ 3,885,646
(Cost $3,856,645)
Other Assets and Liabilities(Net)(31.1%) (921,800)
----------
Net Assets 100.0% $2,963,846
==========
Notes to Schedule of Investments($ in thousands):
(a) At September 30, 1997, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all investments
in which there was an excess of value over tax cost. $37,359
Aggregate gross unrealized depreciation for all investments
in which there was an excess of tax cost over value. (8,358)
----------
Unrealized appreciation-net $ 29,001
==========
(b) Securities with an aggregate market value of $406
have been segregated with the custodian to cover margin
requirements for the following open future contracts at
September 30, 1997:
</TABLE>
<TABLE>
<CAPTION>
Unrealized
Type Contracts Appreciation
- --------------------------------------------------------------------------------
<S> <C> <C>
Eurodollar December Futures(12/97) 170 $ 60
Eurodollar March Futures(03/98) 200 70
Eurodollar June Futures(06/98) 200 75
U.S. Treasury 5 Year Note(12/97) 12 12
U.S. Treasury 30 Year Bond (12/97) 37 73
----------
$ 290
==========
</TABLE>
(c) Foreign forward currency contracts outstanding at September 30, 1997:
<TABLE>
<CAPTION>
Principal
Amount Unrealized
Covered Expiration Appreciation/
Type by Contract Month (Depreciation)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Buy C$ 15,079 03/98 $ (88)
Sell 15,072 12/97 (14)
Sell 57,490 03/98 963
Sell DM 3,544 12/97 (50)
Buy DG 403 11/97 9
---------
$ 820
=========
</TABLE>
(d) Variable Rate Security. The rate listed is as of September 30, 1997.
(e) Principal amount denoted in indicated currency:
C$ - Canadian Dollar
DM - German Mark
DG - Dutch Guilder
(f) Securities are grouped by coupon and represent a range of maturities.
(g) Principal amount of the security is adjusted for inflation.
68 PIMCO Funds See accompanying notes
<PAGE>
Schedule of Investments
Low Duration Fund II
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES 4.0%
- --------------------------------------------------------------------------------
<S> <C> <C>
BANKING AND FINANCE 4.0%
Bear Stearns
6.050% due 08/25/00 (c) $ 10,000 $ 10,000
Golden West Financial Corp.
8.630% due 08/30/98 3,000 3,066
------------
Total Corporate Bonds and Notes 13,066
(Cost $13,021) ============
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES 12.5%
- --------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.
5.950% due 06/19/98 15,000 15,041
Federal National Mortgage Assn.
6.150% due 12/14/01 475 472
7.500% due 02/11/02 175 184
Student Loan Marketing Assn.
6.000% due 06/30/98 25,000 25,070
------------
Total U.S. Government Agencies 40,767
(Cost $40,660) ============
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS 4.0%
- --------------------------------------------------------------------------------
U.S. Treasury Notes
6.130% due 08/31/98 10,000 10,044
6.000% due 09/30/98 3,000 3,010
------------
Total U.S. Treasury Obligations 13,054
(Cost $13,006) ============
- --------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES 87.9%
- --------------------------------------------------------------------------------
Collateralized Mortgage Obligations 16.8%
American Southwest Financial
7.500% due 10/01/18 1,000 1,016
Capstead Mortgage Corp.
7.500% due 02/25/23 3,000 3,035
Citicorp Mortgage Securities, Inc.
9.500% due 09/25/02 1,279 1,280
9.500% due 10/25/15 738 749
CMC Securities Corp.
7.740% due 04/25/25 (c) 5,176 5,305
Collateralized Mortgage Securities Corp.
9.000% due 04/25/10 286 286
11.880% due 04/01/15 258 274
Donaldson, Lufkin & Jenrette
8.060% due 05/25/24 (c) 2,397 2,424
Federal Home Loan Mortgage Corp.
8.500% due 05/15/04 306 305
12.900% due 05/01/14 367 386
9.250% due 10/25/18 171 182
8.600% due 06/15/19 1,136 1,138
7.000% due 08/25/22 1,000 1,006
Federal National Mortgage Assn.
8.000% due 11/25/23 10,568 10,942
Kidder Peabody Acceptance Corp.
7.150% due 04/25/25 1,668 1,679
Lomas & Nettleton
12.000% due 03/17/14 168 177
Prudential Home
7.500% due 06/25/25 5,017 5,070
Residential Asset Securitization Trust
9.000% due 07/25/26 5,434 5,538
Residential Funding
7.500% due 10/25/22 1,955 1,984
Resolution Trust Corp.
6.900% due 10/25/21 (c) 367 368
8.040% due 10/25/28 (c) 5,351 5,441
Ryland Acceptance Corp.
14.000% due 11/25/31 184 205
Salomon Brothers Mortgage Securities
7.650% due 11/25/22 (c) 2,864 2,922
Saxon Mortgage
7.780% due 09/25/22 (c) 1,799 1,837
Sears Mortgage Securities
8.660% due 05/25/32 (c) 1,136 1,153
UBS Mortgage
8.000% due 07/25/20 413 416
------------
55,118
============
Federal Home Loan Mortgage Corporation 6.8%
8.000% due 07/01/24-12/01/25 (d) 18,597 19,251
8.270% due 07/01/23 (c) 2,639 2,757
10.500% due 09/01/15-12/01/18 (d) 95 105
------------
22,113
============
Federal National Mortgage Association 1.9%
6.110% due 11/01/18-10/01/28 (c)(d) 2,000 2,002
7.630% due 01/01/24 (c) 2,212 2,269
8.500% due 02/01/98-06/01/98 (d) 68 69
9.000% due 06/01/98 80 81
10.500% due 05/01/12 1,570 1,736
------------
6,157
============
Government National Mortgage Association 60.7%
6.000% due 04/20/27 (c) 14,995 15,121
6.500% due 08/15/23-06/15/26 (d) 2,148 2,106
6.880% due 10/20/25 (c) 8,127 8,328
7.130% due 07/20/23 (c) 13,571 13,983
7.380% due 04/20/22-06/20/22 (c)(d) 10,593 10,919
7.500% due 02/15/22-11/19/27 (d) 14,698 15,002
8.000% due 11/19/27 21,250 21,927
8.500% due 05/15/25-11/19/27 (d) 104,881 109,610
9.000% due 07/20/16-12/20/17 (d) 1,196 1,285
------------
198,281
============
Other Mortgage-backed Securities 1.7%
Guardian
8.030% due 07/25/19 (c) 162 159
7.170% due 10/25/19 (c) 559 415
6.880% due 07/25/20 (c) 902 633
Resolution Trust Corp.
7.110% due 05/25/19 (c) 1,790 1,770
Sears Mortgage
6.500% due 03/25/17 215 200
7.440% due 1-.25/22 (c) 2,389 2,502
------------
5,679
============
Stripped Mortgage-backed Securities 0.0%
Volvo Car Finance Grantor Trust (PO)
0.000% due 08/12/98 33 32
------------
Total Mortgage-Backed Securities 287,380
(Cost $285,587) ============
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES 4.6%
- --------------------------------------------------------------------------------
Conti Mortgage Home Equity Loan Trust
6.190% due 10/15/11 (c) 5,000 4,992
EQCC Home Equity Loan Trust
6.100% due 10/15/03 10,000 10,038
------------
Total Asset-Backed Securities 15,030
(Cost $15,000) ============
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 28.1%
- --------------------------------------------------------------------------------
Certificates Of Deposit 3.1%
Bankers Trust
5.900% due 07/14/98 10,000 10,007
------------
Discount Notes 23.9%
American Express Credit
5.500% due 11/12/97 12,400 12,320
Ameritech Corp.
5.480% due 10/06/97 2,900 2,898
AT&T Capital Corp.
5.500% due 10/14/97 9,400 9,381
Ford Motor Credit Corp.
5.500% due 10/03/97 900 900
5.490% due 10/06/97 800 799
5.520% due 10/07/97 6,600 6,594
5.480% due 11/05/97 200 199
General Electric Capital Corp.
5.520% due 11/05/97 4,100 4,078
5.500% due 11/19/97 1,000 993
General Motors Acceptance Corp.
5.580% due 11/05/97 200 199
5.540% due 11/12/97 5,500 5,464
5.580% due 01/14/98 3,200 3,148
</TABLE>
1997 Semiannual Report See accompanying notes 69
<PAGE>
Schedule of Investments
Low Duration Fund II
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
<S> <C> <C>
Gillette Co.
5.480% due 10/08/97 $ 11,400 $ 11,388
National Rural Utilities Cooperative
5.500% due 10/02/97 200 200
5.480% due 10/24/97 700 698
5.510% due 12/10/97 3,700 3,660
5.500% due 12/12/97 5,900 5,834
New Center Asset Trust
5.540% due 11/19/97 1,700 1,687
Procter & Gamble Co.
5.480% due 10/10/97 6,300 6,291
Wisconsin Electric Power & Light
5.520% due 10/30/97 1,300 1,294
--------
78,025
--------
Repurchase Agreements 1.0%
State Street Bank
5.000% due 10/01/97 3,374 3,374
(Dated 09/30/97. Collateralized by U.S. Treasury --------
Note 6.250% 08/31/02 valued at $3,441,681.
Repurchase proceeds are $3,374,469.)
U.S. Treasury Bills(b)(d) 0.1%
5.070% due 10/02/97-11/13/97 315 314
--------
Total Short-Term Instruments 91,720
(Cost $91,713) --------
Total Investments(a) 141.1% $ 461,017
(Cost $458,987)
Other Assets and Liabilities(Net)(41.1%) (134,277)
---------
Net Assets 100.0% $ 326,740
=========
Notes to Schedule of Investments ($ in thousands):
(a) At September 30, 1997, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 2,810
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (780)
---------
Unrealized appreciation-net $ 2,030
---------
(b) Securities with an aggregate market value of $314
have been segregated with the custodian to cover margin
requirements for the following open future contracts at
September 30, 1997:
</TABLE>
<TABLE>
<CAPTION>
Type Contracts Appreciation
- --------------------------------------------------------------------------------
<S> <C> <C>
Eurodollar December Futures(12/97) 50 $ 18
U.S. Treasury 5 Year Note(12/97) 100 70
U.S. Treasury 10 Year Note(12/97) 126 141
Eurodollar March Futures(03/98) 50 18
Eurodollar June Futures (06/98) 50 19
---------
$ 266
=========
</TABLE>
(c) Variable Rate Security. The rate listed is as of September 30, 1997.
(d) Securities are grouped by coupon and represent a range
of maturities.
70 PIMCO Funds See accompanying notes
<PAGE>
Schedule of Investments
Low Duration Fund III
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES 4.0%
- --------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES 4.0%
Commonwealth Edison
5.779% due 06/15/02 (b) $ 500 $ 500
----------
Total Corporate Bonds and Notes 500
(Cost $499) ==========
- --------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES 94.3%
- --------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS 7.4%
Federal Home Loan Mortgage Corp.
8.500% due 10/15/24 890 908
Federal Home Loan Mortgage Corporation 4.7%
8.750% due 10/01/01 564 578
Federal National Mortgage Association 22.1%
8.500% due 03/01/25-05/01/25 (c) 2,595 2,719
Government National Mortgage Association 60.1%
6.500% due 06/20/27 (b) 2,182 2,221
8.000% due 11/19/27 2,000 2,064
8.500% due 11/19/27 3,000 3,133
----------
7,418
----------
Total Mortgage-Backed Securities 11,623
(Cost $11,584) ==========
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 47.3%
- --------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT 4.1%
Bankers Trust
5.900% due 07/14/98 500 500
----------
DISCOUNT NOTES 42.0%
Ameritech Corp.
5.490% due 10/14/97 400 399
Caisse d'Amortissement
5.510% due 12/09/97 600 594
Florida Power Corp.
5.500% due 10/14/97 400 399
Ford Motor Credit Corp.
5.550% due 10/08/97 600 599
General Electric Capital Corp.
5.520% due 11/20/97 500 496
General Motors Acceptance Corp.
5.580% due 01/14/98 600 590
KFW International Finance, Inc.
5.510% due 11/06/97 300 298
5.510% due 11/13/97 200 199
National Rural Utilities Cooperative
5.500% due 10/06/97 500 500
Queensland Treasury Corp.
5.490% due 11/07/97 500 497
United Parcel Service Co.
5.500% due 11/05/97 600 597
----------
5,168
==========
REPURCHASE AGREEMENTS 1.2%
State Street Bank
5.000% due 10/01/97 154 154
(Dated 09/29/97. Collateralized by U.S. Treasury ----------
Bond 8.375% 08/15/08 valued at $157,118.
Repurchase proceeds are $154,021.)
Total Short-Term Instruments 5,822
(Cost $5,822) ==========
Total Investments (a) 145.6% $ 17,945
(Cost $17,905)
Other Assets and Liabilities (Net) (45.6%) (5,624)
----------
Net Assets 100.0% $ 12,321
==========
</TABLE>
<TABLE>
<S> <C>
Notes to Schedule of Investments ($ in thousands)
(a) At September 30, 1997, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 45
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (5)
----------
Unrealized appreciation-net $ 40
==========
(b) Variable Rate Security. The rate listed is as of September 30,
1997.
(c) Securities are grouped by coupon and represent a range of
maturities.
</TABLE>
1997 Semiannual Report See accompanying notes 71
<PAGE>
Schedule of Investments
Low Duration Mortgage Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES 137.9%
- --------------------------------------------------------------------------------
<S> <C> <C>
Government National Mortgage Association 137.9%
6.500% due 08/20/25 (b) $ 749 $ 767
6.875% due 12/20/17 (b) 156 161
7.000% due 02/20/18-08/20/25 (b)(c) 630 650
7.125% due 07/20/18 (b) 100 104
7.375% due 05/20/16-06/20/25 (b)(c) 1,894 1,953
7.500% due 10/20/27 1,000 1,017
-------
Total Mortgage-Backed Securities 4,652
(Cost $4,605) -------
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 46.3%
- --------------------------------------------------------------------------------
Discount Notes 41.3%
Abbott Laboratories
5.490% due 10/22/97 100 100
BellSouth Telecommunications, Inc.
5.500% due 10/23/97 100 100
Caisse d'Amortissement
5.510% due 12/09/97 100 99
Canadian Wheat Board
5.500% due 11/19/97 100 99
Electricite de France
5.490% due 12/11/97 100 99
Federal National Mortgage Assn.
5.490% due 10/17/97 100 100
Ford Motor Credit Corp.
5.580% due 10/03/97 100 100
General Electric Capital Corp.
5.520% due 11/05/97 100 99
General Motors Acceptance Corp.
5.560% due 11/19/97 100 99
KFW International Finance, Inc.
5.510% due 10/27/97 100 100
National Rural Utilities Cooperative
5.500% due 10/27/97 100 100
Pitney Bowes Credit Corp.
5.530% due 11/24/97 100 99
Proctor & Gamble Co.
5.490% due 11/06/97 100 99
Wisconsin Electric Power & Light
5.500% due 11/06/97 100 99
-------
1,392
-------
Repurchase Agreements 5.0%
State Street Bank
5.000% due 10/01/97 170 170
(Dated 09/29/97. Collateralized by U.S. Treasury -------
Bond 8.375% 08/15/08 valued at $173,952.
Repurchase proceeds are $170,024.)
Total Short-Term Instruments 1,562
(Cost $1,562) -------
Total Investments(a) 184.2% $ 6,214
(Cost $6,167)
Other Assets and Liabilities (Net)(84.2%) (2,840)
-------
Net Assets 100.0% $ 3,374
-------
</TABLE>
================================================================================
Notes to Schedule of Investments ($ in thousands):
(a) At September 30, 1997, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 47
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cos
over value. 0
-------
Unrealized appreciation-net $ 47
-------
</TABLE>
(b) Variable Rate Security. The rate listed is as of September 30, 1997.
(c) Securities are grouped by coupon and represent a range of maturities.
72 PIMCO Funds See accompanying notes
<PAGE>
Schedule of Investments
Short-Term Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES 44.3%
- --------------------------------------------------------------------------------
<S> <C> <C>
Banking And Finance 28.3%
Ahmanson (H.F.) & Co.
6.330% due 04/15/98 $ 5,800 $ 5,820
Associates Corp. of North America
8.800% due 08/01/98 646 661
6.375% due 08/15/98 1,600 1,607
AT&T Capital Corp.
5.900% due 11/13/97 1,400 1,400
5.775% due 02/02/98 (d) 3,000 3,001
7.800% due 02/10/98 2,000 2,015
5.900% due 07/10/98 100 100
5.870% due 08/28/98 500 500
5.850% due 01/05/99 3,585 3,577
6.160% due 12/03/99 1,000 1,000
Banco Latino
6.600% due 04/17/98 300 301
Capital One Bank
6.048% due 01/02/98 (d) 3,800 3,801
6.740% due 05/31/99 875 882
Caterpillar Financial
5.550% due 04/01/99 (d) 2,000 2,003
Chrysler Financial Corp.
5.625% due 01/15/99 570 568
Donaldson, Lufkin & Jenrette
6.375% due 05/25/26 (d) 1,102 1,100
Ford Motor Credit Corp.
5.810% due 11/09/98 (d) 2,600 2,613
5.960% due 03/23/99 (d) 1,000 999
6.130% due 04/05/99 (d) 1,500 1,490
General Motors Acceptance Corp.
6.000% due 12/30/98 1,575 1,576
Kansallis-Osake
7.850% due 09/30/43 (d) 5,000 5,080
Lehman Brothers, Inc.
6.840% due 09/25/98 1,000 1,007
6.200% due 09/01/99 (d) 3,000 2,998
Residential Funding
7.453% due 12/01/18 (d) 2,277 2,321
Salomon, Inc.
5.790% due 11/26/97 1,700 1,700
5.650% due 02/10/98 1,000 1,000
5.750% due 03/31/98 800 800
6.000% due 07/28/98 250 250
6.030% due 02/11/99 500 500
3.650% due 02/14/02 (g) 3,036 2,951
----------
53,621
----------
Industrials 11.3%
Air Canada
6.300% due 07/31/05 (d) 2,000 1,885
Amerco, Inc.
6.850% due 09/18/98 1,000 1,005
COFIRI International, Inc.
6.140% due 10/27/00 (d) 2,000 1,996
Delta Air Lines
9.875% due 01/01/98 1,000 1,010
Occidental Petroleum
5.900% due 11/09/98 1,100 1,099
RJR Nabisco
8.750% due 04/15/04 4,800 5,077
Sears Roebuck & Co.
5.643% due 03/10/99 (d) 3,000 2,997
TCI Communications, Inc.
7.130% due 02/02/98 1,300 1,305
7.130% due 02/03/98 3,000 3,013
USX Corp.
6.375% due 07/15/98 2,000 2,006
----------
21,393
----------
Utilities 4.7%
Beaver Valley Funding Corp.
8.250% due 06/01/03 1,021 1,045
CMS Energy
9.875% due 10/01/99 (d) 2,000 2,033
Consumers Energy Corp.
8.750% due 02/15/98 2,000 2,018
Delmarva Power & Light
5.690% due 06/24/98 1,000 999
Gulf States Utilities
9.720% due 07/01/98 1,200 1,229
Niagara Mohawk Power
9.990% due 05/11/04 1,500 1,529
----------
8,853
----------
Total Corporate Bonds and Notes 83,867
(Cost $83,579) ----------
- --------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES 22.8%
- --------------------------------------------------------------------------------
Collateralized Mortgage Obligations 5.8%
Dime Savings
7.147% due 11/01/18 (d) 504 463
Donaldson, Lufkin & Jenrette
7.200% due 10/17/20 (d) 1,352 1,375
7.835% due 09/01/21 (d) 83 83
7.097% due 06/25/22 (d) 499 502
7.483% due 05/25/23 (d) 684 693
Federal National Mortgage Assn.
5.800% due 08/25/15 2,700 2,692
Greenwich
7.643% due 04/25/22 (d) 243 246
7.285% due 10/25/22 (d) 187 188
Manufacturers Hanover Corp.
7.464% due 12/16/25 (d) 2,416 2,419
Prudential Bache
6.103% due 09/01/18 (d) 56 55
Prudential Home
6.750% due 01/25/24 1,262 1,260
Resolution Trust Corp.
8.861% due 12/25/20 (d) 322 325
6.890% due 07/25/21 (d) 14 14
6.934% due 06/25/24 (d) 662 665
----------
10,980
----------
Federal National Mortgage Association 3.5%
6.110% due 05/01/36 (d) 6,662 6,593
----------
Government National Mortgage Association 9.4%
6.000% due 02/20/26-01/20/27 (d)(f) 11,714 11,873
7.000% due 08/20/25 (d) 1,528 1,566
7.125% due 09/20/23 (d) 4,256 4,384
----------
17,823
----------
Other Mortgage-Backed Securities 2.1%
Federal National Mortgage Assn.
1.000% due 06/25/23 607 586
First Nationwide Trust
6.722% due 10/25/18 (d) 54 54
Guardian
6.926% due 12/25/19 (d) 331 219
6.815% due 02/25/20 (d) 432 236
6.963% due 02/25/20 (d) 407 224
7.401% due 01/25/21 (d) 525 361
Resolution Trust Corp.
8.625% due 10/25/21 868 871
6.684% due 05/25/29 (d) 1,122 1,124
Ryland Acceptance Corp.
7.065% due 12/25/21 (d) 176 176
----------
3,851
----------
Stripped Mortgage-Backed Securities 2.0%c
Federal Home Loan Mortgage Corp.(IO)
7.000% due 06/15/19 8,000 1,447
Federal National Mortgage Assn.(IO)
6.000% due 10/25/03 1,967 30
7.000% due 07/25/06 3,211 443
6.500% due 12/25/06 8,441 845
7.000% due 05/25/13 1,505 34
6.500% due 06/25/17 5,277 460
6.500% due 10/25/23 3,130 487
L.F. Rothchild Mortgage(PO)
0.000% due 04/01/17 103 102
----------
3,848
----------
Total Mortgage-Backed Securities 43,095
(Cost $43,187) ----------
</TABLE>
1997 Semiannual Report See accompanying notes 73
<PAGE>
Schedule of Investments (Cont.)
Short-Term Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES 9.1%
- --------------------------------------------------------------------------------
<S> <C> <C>
Community Trust Bancorp, Inc.
6.500% due 09/15/03 $ 5,124 $ 5,148
Green Tree Financial Group
6.420% due 04/15/28 9,000 9,072
LIBOR-Index Certificates
9.040% due 10/01/03 (d) 1,000 1,000
9.262% due 10/01/03 (d) 2,000 2,000
----------
Total Asset-Backed Securities 17,220
(Cost $17,142) ----------
- --------------------------------------------------------------------------------
SOVEREIGN ISSUES 3.9%
- --------------------------------------------------------------------------------
Government of Malaysia
5.688% due 10/19/05 (d) 1,250 1,243
Nafinsa Finance Trust II
8.262% due 03/31/99 (d) 144 146
Republic of Argentina
6.750% due 03/31/05 (d) 6,240 5,944
----------
Total Sovereign Issues 7,333
(Cost $6,600) ----------
- --------------------------------------------------------------------------------
FOREIGN CURRENCY-DENOMINATED ISSUES (c)(e) 2.7%
- --------------------------------------------------------------------------------
Commonwealth of Canada
4.250% due 12/01/26 (g) C$ 2,268 1,704
Commonwealth of New Zealand
4.500% due 02/15/16 (g) N$ 5,400 3,350
----------
Total Foreign Currency-Denominated Issues 5,054
(Cost $5,210) ----------
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 17.6%
- --------------------------------------------------------------------------------
Certificates Of Deposit 1.5%
Banco Latino
6.400% due 03/27/98 $ 1,400 1,400
6.550% due 04/14/98 1,500 1,502
----------
2,902
----------
Discount Notes 15.5%
Caisse d'Amortissement
5.500% due 11/12/97 1,900 1,888
Canadian Wheat Board
5.510% due 12/10/97 1,900 1,879
Federal National Mortgage Assn.
5.490% due 10/17/97 3,600 3,591
General Motors Acceptance Corp.
5.540% due 11/12/97 900 894
Kellogg Co.
5.500% due 12/17/97 2,200 2,174
KFW International Finance, Inc.
5.500% due 11/19/97 9,000 8,933
National Rural Utilities Cooperative
5.480% due 10/28/97 300 299
5.520% due 12/08/97 400 396
5.500% due 12/12/97 6,900 6,824
New Center Asset Trust
5.520% due 10/10/97 300 300
TCI Communications, Inc.
6.062% due 05/08/98 2,200 2,126
----------
29,304
----------
Repurchase Agreements 0.6%
State Street Bank
5.000% due 10/01/97 1,156 1,156
(Dated 09/30/97. Collateralized by U.S. Treasury ----------
Note 6.250% 08/31/02 valued at $1,181,019.
Repurchase proceeds are $1,156,161.)
U.s. Treasury Bills (b) 0.0%
5.010% due 10/02/97 10 10
Total Short-Term Instruments 33,372
(Cost $33,364) ----------
Total Investments (a) 100.4% $ 189,941
(Cost $189,082)
Other Assets and Liabilities (Net)(0.4%) (776)
Net Assets 100.0% $ 189,165
----------
</TABLE>
Notes to Schedule of Investments ($ in thousands):
(a) At September 30, 1997, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 1,894
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. $ (1,035)
----------
Unrealized appreciation-net $ 859
----------
</TABLE>
(b) Securities with an aggregate market value of $10
have been segregated with the custodian to cover margin
requirements for the following open future contracts at
September 30, 1997:
<TABLE>
<CAPTION>
Unrealized
Type Contracts Appreciation
- --------------------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury 2 Year Note (12/97) 11 $ 7
</TABLE>
(c) Foreign forward currency contracts outstanding at September 30, 1997:
<TABLE>
<CAPTION>
Principal
Amount Unrealized
Covered Expiration Appreciation/
Type by Contract Month (Depreciation)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sell C$ 2,064 12/97 0
Sell N$ 4,940 11/97 4
Sell 381 12/97 (2)
Sell SK 1,055 11/97 (8)
-------------
$ (6)
</TABLE>
(d) Variable Rate Security. The rate listed is as of September 30, 1997.
(e) Principal amount denoted in indicated currency:
C$ - Canadian Dollar
N$ - New Zealand Dollar
SK - Swedish Krona
(f) Securities are grouped by coupon and represent a range of maturities.
(g) Principal amount of the security is adjusted for inflation.
74 PIMCO Funds See accompanying notes
<PAGE>
Schedule of Investments
Long-Term U.S. Government Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS 54.4%
- --------------------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury Bonds
8.125% due 05/15/21 $ 650 $ 777
6.750% due 08/15/26 19,800 20,561
6.500% due 11/15/26 1,500 1,510
6.625% due 02/15/27 1,250 1,280
---------
Total U.S. Treasury Obligations 24,128
(Cost $23,860) ---------
- --------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES 61.8%
- --------------------------------------------------------------------------------
Collateralized Mortgage Obligations 44.5%
Bear Stearns
7.100% due 06/25/24 385 379
California Federal Bank
6.529% due 08/25/30 (b) 1,443 1,434
Federal Home Loan Mortgage Corp.
4.950% due 03/15/04 1,106 1,105
9.500% due 01/15/05 117 122
7.000% due 03/25/15 1,200 1,212
7.000% due 07/15/22 806 771
6.500% due 05/15/23 93 81
7.000% due 08/15/23 180 164
7.000% due 09/15/23 66 62
6.500% due 11/15/23 224 203
6.500% due 03/15/24 408 368
Federal Housing Administration
7.430% due 11/01/23 1,559 1,582
7.430% due 01/01/24 411 417
Federal National Mortgage Assn.
5.000% due 11/25/03 687 683
4.950% due 06/25/10 1,748 1,743
5.500% due 04/25/14 437 435
8.000% due 01/25/19 16 16
8.750% due 08/25/20 269 277
8.000% due 03/25/22 48 49
7.000% due 04/25/22 713 682
7.000% due 06/25/22 343 327
7.800% due 10/25/22 733 748
7.000% due 06/25/23 350 335
6.000% due 08/25/23 856 804
7.000% due 05/18/27 1,298 1,189
First Boston Mortgage Securities Corp.
7.300% due 07/25/23 427 382
General Electric Capital Mortgage
7.500% due 03/25/19 118 119
Independent National Mortgage Corp.
8.490% due 01/25/25 (b) 399 410
Prudential Home
6.500% due 12/25/22 432 431
6.950% due 09/25/23 57 51
6.500% due 01/25/24 1,000 889
Residential Funding
8.323% due 03/25/25 (b) 347 356
Resolution Trust Corp.
6.888% due 06/25/23 (b) 219 219
Vendee Mortgage
7.750% due 05/15/22 164 168
6.500% due 06/15/24 1,852 1,542
---------
19,755
---------
Federal Home Loan Mortgage Corporation 0.8%
7.662% due 05/01/22 (b) 199 207
7.852% due 06/01/22 (b) 163 170
---------
377
---------
Federal Housing Administration 3.8%
5.871% due 11/01/19 212 213
7.430% due 12/28/17 1,456 1,469
---------
1,682
---------
Federal National Mortgage Association 1.0%
7.900% due 10/01/24 (b) 420 438
---------
Government National Mortgage Association 4.8%
7.000% due 02/20/24-08/20/25 (b)(c) 927 951
7.125% due 07/20/23 (b) 543 559
7.375% due 06/20/23 (b) 594 614
---------
2,124
---------
Other Mortgage-Backed Securities 5.7%
Resolution Trust Corp.
6.684% due 05/25/29 (b) 1,496 1,499
Ryland Acceptance Corp.
7.555% due 11/28/22 (b) 1,000 1,015
---------
2,514
---------
Stripped Mortgage-Backed Securities 1.2%
Federal Home Loan Mortgage Corp.(IO)
7.000% due 09/15/99 209 12
7.000% due 07/15/04 459 16
6.500% due 08/15/06 333 28
6.500% due 10/15/06 512 52
6.500% due 11/15/06 663 56
6.000% due 10/15/07 598 51
7.000% due 02/15/26 382 28
Federal National Mortgage Assn.(IO)
6.500% due 02/25/07 346 33
6.500% due 08/25/20 1,000 105
6.500% due 09/25/21 1,024 156
---------
537
---------
Total Mortgage-Backed Securities 27,427
(Cost $26,837) ---------
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 2.0%
- --------------------------------------------------------------------------------
Repurchase Agreements 1.4%
State Street Bank
5.000% due 10/01/97 632 632
(Dated 09/30/97. Collateralized by U.S. Treasury ---------
Bond 7.500% 11/15/16 valued at $645,954.
Repurchase proceeds are $632,000.)
U.S. Treasury Bills (c) 0.6%
4.989% due 10/2/97-11/13/97 260 260
---------
Total Short-Term Instruments 892
(Cost $892) ---------
Total Investments (a) 118.2% $ 52,447
(Cost $51,589)
Other Assets and Liabilities (Net) (18.2%) (8,056)
---------
Net Assets 100.0% $ 44,391
---------
Notes to Schedule of Investments ($ in thousands):
(a) At September 30, 1997, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 973
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (115)
--------
Unrealized appreciation-net $ 858
--------
</TABLE>
(b) Variable rate security. The rate listed is as of September 30,1997.
(c) Securities are grouped by coupon and represent a range of maturities.
1997 Semiannual Report See accompanying notes 75
<PAGE>
Schedule of Investments
Real Return Bond Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES 9.8%
- --------------------------------------------------------------------------------
<S> <C> <C>
Banking and Finance 9.8%
J.P. Morgan & Co.
5.485% due 02/15/12 (c) $ 250 $ 240
Pacific Southwest Bank
6.060% due 06/15/02 172 172
Toyota Motor Credit Corp.
4.693% due 02/15/02 (c) 400 388
---------
Total Corporate Bonds and Notes 800
(Cost $812) ---------
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS 144.7%
- --------------------------------------------------------------------------------
Treasury Inflation Protected Securities
3.625% due 07/15/02 (e) 8,005 8,101
3.375% due 01/15/07 (e) 3,773 3,704
---------
Total U.S. Treasury Obligations 11,805
(Cost $11,850) ---------
- --------------------------------------------------------------------------------
FOREIGN CURRENCY-DENOMINATED ISSUES(b)(d) 7.4%
- --------------------------------------------------------------------------------
Commonwealth of Australia
4.000% due 08/20/05 (e) A$ 100 127
Commonwealth of Canada
4.250% due 12/01/26 (e) C$ 180 136
Commonwealth of New Zealand
4.500% due 02/15/16 (e) N$ 450 279
Republic of Poland
21.365% due 05/13/98 PZ 260 66
---------
Total Foreign Currency-Denominated Issues 608
(Cost $617) ---------
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 6.1%
- --------------------------------------------------------------------------------
Discount Notes 4.9%
General Motors Acceptance Corp.
5.540% due 11/03/97 $ 100 99
New Center Asset Trust
5.530% due 12/03/97 300 297
---------
396
---------
Repurchase Agreements 1.1%
State Street Bank
5.000% due 10/01/97 88 88
(Dated 09/30/97. Collateralized by U.S. Treasury ---------
Note 5.250% 12/31/97 valued at $91,125.
Repurchase proceeds are 88,012.)
U.S. Treasury Bills 0.1%
5.060% due 10/02/97 10 10
---------
Total Short-Term Instruments 494
(Cost $495) ---------
Total Investments(a) 168.0% $ 13,707
(Cost $13,774)
Other Assets and Liabilities(Net)(68.0%) (5,548)
---------
Net Assets 100.0% $ 8,159
---------
</TABLE>
Notes to Schedule of Investments ($ in thousands):
(a) At September 30, 1997, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 2
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (69)
---------
Unrealized depreciation-net $ (67)
---------
(b) Foreign forward currency contracts outstanding at September 30, 1997:
<TABLE>
<CAPTION>
Principal
Amount Unrealized
Covered Expiration Appreciation/
Type by Contract Month (Depreciation)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sell A$ 173 11/97 $ 3
Buy C$ 531 11/97 2
Buy 100 04/98 (1)
Sell 18 10/97 0
Sell 544 11/97 0
Sell 225 12/97 0
Sell DM 58 11/97 (1)
Sell N$ 199 11/97 0
Sell 242 01/98 0
--------------
$ 3
--------------
</TABLE>
(c) Variable Rate Security. The rate listed is as of September 30, 1997.
(d) Principal amount denoted in indicated currency:
A$ - Australian Dollar
C$ - Canadian Dollar
DM - German Mark
N$ - New Zealand Dollar
PZ - Polish Zloty
(e) Principal amount of the security is adjusted for inflation.
76 PIMCO Funds See accompanying notes
<PAGE>
Schedule of Investments
Foreign Bond Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- -----------------------------------------------------------------------------------
ARGENTINA (c)(f) 1.3%
- -----------------------------------------------------------------------------------
<S> <C> <C>
Republic of Argentina
8.000% due 03/20/98 AP 780 $ 755
3.353% due 04/01/01(d) 3,911 3,618
----------
Total Argentina 4,373
(Cost $4,284) ----------
- -----------------------------------------------------------------------------------
AUSTRALIA (c)(f) 10.0%
- -----------------------------------------------------------------------------------
Australian Wheat Board
5.520% due 12/04/97 $ 1,889 1,870
Commonwealth of Australia
5.480% due 11/03/97 4,100 4,079
5.500% due 12/18/97 4,000 3,951
13.000% due 07/15/00 A$ 2,100 1,829
9.500% due 08/15/03 500 429
10.000% due 02/15/06 2,070 1,884
7.500% due 09/15/09 23,000 18,488
Queensland Treasury Corp.
5.510% due 11/12/97 $ 700 695
----------
Total Australia 33,225
(Cost $32,944) ----------
- -----------------------------------------------------------------------------------
BELGIUM (c)(f) 1.6%
- -----------------------------------------------------------------------------------
Kingdom of Belgium
9.000% due 03/28/03 BF 200 7
5.100% due 11/21/04(d) 183,200 5,389
----------
Total Belgium 5,396
(Cost $5,693) ----------
- -----------------------------------------------------------------------------------
CANADA (c)(f) 14.1%
- -----------------------------------------------------------------------------------
Canadian Wheat Board
5.500% due 10/08/97 $ 2,000 1,998
5.500% due 11/19/97 5,800 5,757
5.500% due 11/21/97 8,000 7,938
Commonwealth of Canada
3.700% due 04/02/98 C$ 7,840 5,575
8.500% due 03/01/00 23,498 18,410
Ontario Hydro
5.500% due 12/15/97 $ 4,000 3,953
Rogers Cantel, Inc.
10.500% due 06/01/06 C$ 2,500 2,137
Sears Canada
11.700% due 07/10/00 1,000 838
----------
Total Canada 46,606
(Cost $45,990) ----------
- -----------------------------------------------------------------------------------
CROATIA 0.8%
- -----------------------------------------------------------------------------------
Republic of Croatia
6.500% due 07/31/06(d) $ 1,463 1,409
6.500% due 07/30/10(d) 1,320 1,244
----------
Total Croatia 2,653
(Cost $2,727) ----------
- -----------------------------------------------------------------------------------
CZECH REPUBLIC (c)(f) 1.2%
- -----------------------------------------------------------------------------------
Bayerische Landesbank
11.500% due 10/09/97 CK 134,000 4,072
----------
Total Czech Republic 4,072
(Cost $4,984) ----------
- -----------------------------------------------------------------------------------
DENMARK (c)(f) 1.9%
- -----------------------------------------------------------------------------------
Kingdom of Denmark
8.000% due 05/15/03 DK 29,500 4,940
8.000% due 03/15/06 8,840 1,506
----------
Total Denmark 6,446
(Cost $6,540) ----------
- -----------------------------------------------------------------------------------
FINLAND (c)(f) 12.2%
- -----------------------------------------------------------------------------------
Republic of Finland
3.490% due 03/13/98 FM 15,000 $ 2,798
3.630% due 08/14/98 46,000 8,425
7.250% due 04/18/06 129,000 26,986
8.250% due 10/15/10 10,000 2,254
----------
Total Finland 40,463
(Cost $40,062) ----------
- -----------------------------------------------------------------------------------
FRANCE (c)(f) 4.6%
- -----------------------------------------------------------------------------------
Caisse d'Amortissement
5.520% due 10/20/97 $ 12,100 12,065
Republic of France
7.750% due 10/25/05 FF 17,000 3,332
----------
Total France 15,397
(Cost $15,383) ----------
- -----------------------------------------------------------------------------------
GERMANY (c)(f) 9.3%
- -----------------------------------------------------------------------------------
Republic of Germany
7.125% due 12/20/02 DM 500 312
6.500% due 07/04/27 51,445 30,479
Treuhandanstalt
6.875% due 06/11/03 240 148
----------
Total Germany 30,939
(Cost $30,607) ----------
- -----------------------------------------------------------------------------------
GREECE (c)(f) 0.6%
- -----------------------------------------------------------------------------------
Republic of Greece
11.200% due 05/19/03(d) GD 100,000 360
11.100% due 06/17/03(d) 107,400 388
14.000% due 10/23/03 376,000 1,360
----------
Total Greece 2,108
(Cost $2,291) ----------
- -----------------------------------------------------------------------------------
INDONESIA (c)(f) 0.5%
- -----------------------------------------------------------------------------------
Citibank Indonesia
19.128% due 10/24/97 IR 5,000,000 1,511
----------
Total Indonesia 1,511
(Cost $2,045) ----------
- -----------------------------------------------------------------------------------
ITALY (c)(f) 17.6%
- -----------------------------------------------------------------------------------
Republic of Italy
6.000% due 01/01/00 IL 36,440,000 21,492
9.500% due 01/01/05 9,370,000 6,524
7.250% due 11/01/26 48,530,000 30,271
----------
Total Italy 58,287
(Cost $55,607) ----------
- -----------------------------------------------------------------------------------
JAPAN (c)(f) 17.6%
- -----------------------------------------------------------------------------------
Government of Japan
6.400% due 03/20/00 JY 5,074,600 48,020
5.500% due 03/20/02 319,000 3,141
4.500% due 06/20/03 685,000 6,610
4.100% due 12/22/03 64,200 610
----------
Total Japan 58,381
(Cost $58,703) ----------
- -----------------------------------------------------------------------------------
MEXICO (c)(f) 4.8%
- -----------------------------------------------------------------------------------
Banco Nacional de Comercio Exterior
8.000% due 05/06/98 DM 13,000 7,509
Bancomer
8.000% due 07/07/98 $ 2,000 2,013
Nacional Financiera
8.094% due 12/15/97(d) 19 19
Petroleos Mexicanos
7.750% due 09/30/98 FF 22,000 3,826
Republic of Mexico
18.950% due 10/23/97 MP 5,800 739
22.800% due 10/30/97 6,190 787
</TABLE>
1997 Semiannual Report See accompanying notes 77
<PAGE>
Schedule of Investments (Cont.)
Foreign Bond Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- -----------------------------------------------------------------------------------
<S> <C> <C>
Third Mexican Acceptance Corp.
7.370% due 03/15/98 $ 1,000 $ 975
----------
Total Mexico 15,868
(Cost $15,775) ----------
- -----------------------------------------------------------------------------------
NETHERLANDS (c)(f) 2.0%
- -----------------------------------------------------------------------------------
Kingdom of Netherlands
6.245% due 07/15/98 DG 7,500 3,850
5.750% due 01/15/04 4,880 2,539
8.250% due 02/15/07 400 241
----------
Total Netherlands 6,630
(Cost $6,559) ----------
- -----------------------------------------------------------------------------------
NEW ZEALAND (c)(f) 1.9%
- -----------------------------------------------------------------------------------
Commonwealth of New Zealand
8.000% due 04/15/04 N$ 9,350 6,406
----------
Total New Zealand 6,406
(Cost $6,670) ----------
- -----------------------------------------------------------------------------------
POLAND (c)(f) 4.1%
- -----------------------------------------------------------------------------------
Republic of Poland
21.670% due 10/22/97 PZ 520 150
22.160% due 11/05/97 16,400 4,691
21.850% due 11/12/97 3,920 1,116
22.050% due 11/19/97 7,200 2,041
21.500% due 12/03/97 5,700 1,601
21.640% due 04/22/98 6,470 1,672
21.365% due 05/13/98 3,320 847
21.550% due 06/26/98 6,600 1,645
----------
Total Poland 13,763
(Cost $14,268) ----------
- -----------------------------------------------------------------------------------
ROMANIA (c)(f) 0.3%
- -----------------------------------------------------------------------------------
Republic of Romania
7.750% due 06/17/02 DM 1,600 926
----------
Total Romania 926
(Cost $889) ----------
- -----------------------------------------------------------------------------------
SOUTH AFRICA (c)(f) 0.5%
- -----------------------------------------------------------------------------------
Republic of South Africa
16.300% due 10/17/97 SR 7,080 1,511
----------
Total South Africa 1,511
(Cost $1,580) ----------
- -----------------------------------------------------------------------------------
SPAIN (c)(f) 2.4%
- -----------------------------------------------------------------------------------
Kingdom of Spain
10.000% due 02/28/05 SP 947,100 8,002
----------
Total Spain 8,002
(Cost $7,299) ----------
- -----------------------------------------------------------------------------------
SUPRANATIONAL (c)(f) 0.7%
- -----------------------------------------------------------------------------------
European Bank for Reconstruction & Development
9.000% due 04/22/98 PP 49,000 1,356
World Bank
10.250% due 04/11/02 31,000 840
----------
Total Supranational 2,196
(Cost $3,039) ----------
- -----------------------------------------------------------------------------------
SWEDEN (c)(f) 9.4%
- -----------------------------------------------------------------------------------
Kingdom of Sweden
10.250% due 05/05/00 SK 186,100 27,524
13.000% due 06/15/01 11,200 1,849
8.000% due 08/15/07 12,100 1,814
----------
Total Sweden 31,187
(Cost $30,308) ----------
- -----------------------------------------------------------------------------------
UNITED KINGDOM (c)(f) 9.4%
- -----------------------------------------------------------------------------------
United Kingdom Gilt
8.000% due 12/07/00 BP 1,000 $ 1,672
6.750% due 11/26/04 190 312
8.500% due 12/07/05 16,051 29,216
----------
Total United Kingdom 31,200
(Cost $29,348) ----------
- -----------------------------------------------------------------------------------
UNITED STATES 14.0%
- -----------------------------------------------------------------------------------
Corporate Bonds and Notes 3.6%
AT&T Capital Corp.
5.900% due 11/13/97 $ 3,500 3,501
Resolution Trust Corp.
7.750% due 04/25/28 3,531 3,531
Salomon, Inc.
3.650% due 02/14/02(h) 5,060 4,919
----------
11,951
----------
U.S. Treasury Notes 4.0%
6.250% due 01/31/02 6,100 6,159
6.625% due 05/15/07 6,700 6,922
----------
13,081
----------
Mortgage-Backed Securities 6.1%
Collateralized Mortgage Obligation Trust
9.000% due 05/01/14 45 46
Federal Home Loan Mortgage Corp.
9.050% due 06/15/19 156 167
Government National Mortgage Assn.
6.875% due 11/20/21-10/20/24(d)(g) 1,602 1,651
7.125% due 09/20/23(d) 1,542 1,588
Independent National Mortgage Corp.
8.303% due 11/25/24(d) 333 342
Morgan Stanley Mortgage
8.150% due 07/20/21 4 5
PaineWebber Mortgage
7.000% due 10/25/23 1,403 1,408
Resolution Trust Corp.
10.621% due 05/25/24(d) 190 192
Ryland Acceptance Corp.
8.086% due 09/25/23(d) 6,579 6,737
Sears Mortgage
6.792% due 06/25/22(d) 220 222
Government National Mortgage Assn.
6.875% due 10/20/23(d) 3,524 3,627
7.125% due 09/20/22-09/20/23(d)(g) 2,967 3,058
7.375% due 05/20/22-05/20/23(d)(g) 1,249 1,291
----------
20,334
----------
Asset-Backed Securities 0.3%
Student Loan Marketing Assn.
5.605% due 04/25/04(d) 959 960
----------
Total United States 46,326
(Cost $46,054) ----------
- -----------------------------------------------------------------------------------
PURCHASED OTC CALL OPTIONS (c)(f) 0.9%
- -----------------------------------------------------------------------------------
Government of Japan (OTC)
6.400% due 03/20/00
Strike @ 102.75 Exp. 10/31/97(j) JY 751,600 663
4.500% due 06/20/03
Strike @ 94.77 Exp. 10/31/97(j) 525,000 923
Kingdom of Sweden (OTC)
10.250% due 05/05/00
Strike @ 95.38 Exp. 01/31/98(j) SK 80,000 1,560
----------
Total Purchased OTC Call Options 3,146
(Cost $3,113) ----------
- -----------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 35.0%
- -----------------------------------------------------------------------------------
Discount Notes 33.6%
American Express Credit
5.500% due 10/09/97 $ 6,000 5,993
5.480% due 11/05/97 5,600 5,570
Ameritech Corp.
5.480% due 10/06/97 7,800 7,794
</TABLE>
78 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
<S> <C> <C>
Ford Motor Credit Corp.
5.700% due 10/02/97 $ 1,300 $ 1,300
5.550% due 10/08/97 4,700 4,695
5.510% due 10/09/97 7,000 6,991
General Electric Capital Corp.
5.520% due 11/20/97 3,700 3,671
General Motors Acceptance Corp.
5.510% due 11/12/97 2,000 1,987
5.580% due 01/14/98 5,300 5,214
Gillette Co.
6.350% due 10/01/97 8,200 8,200
5.480% due 10/08/97 2,200 2,197
IBM Credit Corp.
5.480% due 11/05/97 5,000 4,973
5.500% due 11/07/97 1,200 1,193
KFW International Finance, Inc.
5.480% due 10/20/97 4,000 3,988
5.510% due 10/27/97 2,700 2,689
5.490% due 11/13/97 1,700 1,689
5.490% due 11/18/97 6,400 6,353
National Rural Utilities Cooperative
5.500% due 10/02/97 1,900 1,900
5.470% due 10/23/97 1,300 1,296
5.480% due 10/28/97 1,300 1,295
5.500% due 12/12/97 1,100 1,088
New Center Asset Trust
5.520% due 10/10/97 1,400 1,398
5.510% due 10/22/97 4,700 4,685
5.530% due 11/05/97 4,800 4,774
Pfizer, Inc.
5.490% due 10/08/97 13,500 13,486
Pitney Bowes Credit Corp.
5.500% due 10/15/97 7,000 6,985
-----------
111,404
===========
Repurchase Agreements 1.1%
State Street Bank
5.000% due 10/01/97 3,511 3,511
(Dated 09/30/97. Collateralized by U.S. Treasury -----------
Note 6.250% 08/31/02 valued at $3,583,606.
Repurchase proceeds are $3,511,488.)
U.S. Treasury Bills (b)(g) 0.4%
5.073% due 10/02/97-12/11/97 1,210 1,203
-----------
Total Short-Term Instruments 116,118
(Cost $116,119) ===========
Total Investments (a) 178.7% $ 593,136
(Cost $588,881)
Written Options (e) (0.0%) (20)
(Premiums $12)
Other Assets and Liabilities (Net) (78.7%) (261,267)
-----------
Net Assets 100.0% $ 331,849
===========
Notes to Schedule of Investments ($ in thousands):
(a) At September 30, 1997, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 10,199
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (5,944)
-----------
Unrealized appreciation-net $ 4,255
===========
(b) Securities with an aggregate market value of $1,203
have been segregated with the custodian to cover margin
requirements for the following open future contracts at
September 30, 1997:
</TABLE>
<TABLE>
<CAPTION>
Unrealized
Type Contracts Appreciation
- -------------------------------------------------------------------------------
<S> <C> <C>
Commonwealth of Australia 3 Year Note (12/97) 168 $ 180
French Franc 10 Year Future (MAT) (12/97) 64 61
-------------
$ 241
=============
</TABLE>
(c) Foreign forward currency contracts outstanding at September 30, 1997:
<TABLE>
<CAPTION>
Principal
Amount Unrealized
Covered Expiration Appreciation/
Type by Contract Month (Depreciation)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sell A$ 1,841 10/97 $ 21
Buy BF 51,300 10/97 45
Sell 250,479 12/97 (183)
Buy BP 100 10/97 0
Sell 11,618 10/97 225
Sell 1,671 11/97 (48)
Sell 217 01/98 (1)
Buy C$ 34,280 12/97 93
Sell 7,524 12/97 (17)
Sell 12,859 03/98 209
Sell CK 129,490 10/97 (216)
Sell DG 4,898 11/97 (104)
Sell 2,104 12/97 1
Sell DK 2,245 10/97 0
Sell 7,893 11/97 (62)
Buy DM 41,939 10/97 27
Buy 10,652 11/97 151
Buy 46,798 12/97 245
Buy 6,447 01/98 (5)
Sell 25,400 10/97 124
Sell 19,064 11/97 (467)
Sell 32,080 12/97 (111)
Buy EC 1,746 10/97 3
Sell 1,746 10/97 29
Sell 2,346 01/98 2
Buy FF 861 10/97 0
Buy 5,323 12/97 3
Sell 27,602 10/97 (82)
Sell 22,281 11/97 (179)
Sell 604 12/97 0
Buy FM 27,818 10/97 232
Sell 156,602 10/97 71
Sell 19,343 11/97 (166)
Sell 5,058 12/97 (23)
Sell 14,451 01/98 6
Buy GD 57,700 10/97 8
Buy IL 1,030,308 10/97 (6)
Buy IP 7,310 10/97 (386)
Buy IR 4,478,000 12/97 (140)
Buy JY 76,800 10/97 2
Buy 458,000 12/97 (60)
Sell 76,800 10/97 43
Sell 527,408 11/97 201
Sell 76,800 12/97 (2)
Sell MR 9,370 12/97 270
Buy N$ 2,600 12/97 24
Sell 12,458 11/97 10
Buy PP 5,550 10/97 (1)
Buy SF 10,232 10/97 24
Sell 23,132 10/97 (299)
Sell 8,315 11/97 (247)
Sell 17,590 12/97 (63)
Sell 28,424 01/98 (72)
Buy SK 68,370 10/97 448
Buy 23,019 11/97 179
Sell 86,988 10/97 81
Sell 539 11/97 (3)
Sell 21,400 12/97 (70)
</TABLE>
1997 Semiannual Report See accompanying notes 79
<PAGE>
Schedule of Investments (Cont.)
Foreign Bond Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Unrealized
Covered Expiration Appreciation/
Type by Contract Month (Depreciation)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Buy SP 10,518 10/97 $ 0
Buy 449,222 11/97 166
Buy 1,143,532 12/97 (2)
Sell 509,125 12/97 (20)
---------------
$ (92)
===============
</TABLE>
(d) Variable Rate Security. The rate listed is as of September 30, 1997.
(e) Premiums received on Written Options:
<TABLE>
<CAPTION>
Premiums Market
Type Par Received Value
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Put - Indonesian Rupiah vs U.S. Dollar (OTC)IR 3,400,000 $ 12 $ 20
Strike @ 3,400.00 Exp. 10/30/97
</TABLE>
(f) Principal amount denoted in indicated currency:
A$ - Australian Dollar
AP - Argentine Peso
BF - Belgian Franc
BP - British Pound
C$ - Canadian Dollar
CK - Czech Koruna
DG - Dutch Guilder
DK - Danish Krone
DM - German Mark
EC - European Currency Unit
FF - French Franc
FM - Finnish Markka
GD - Greek Drachma
IL - Italian Lira
IP - Irish Punt
IR - Indonesian Rupiah
JY - Japanese Yen
MP - Mexican Peso
MR - Malaysian Ringgit
N$ - New Zealand Dollar
PP - Philippines Peso
PZ - Polish Zloty
SF - Swiss Franc
SK - Swedish Krona
SP - Spanish Peseta
SR - South Africa Rands
(g) Securities are grouped by coupon and represent a range of maturities.
(h) Principal amount of the security is adjusted for inflation.
(i) Security becomes interest bearing at a future date.
(j) Security is subject to outstanding forward sale commitment.
80 PIMCO Funds See accompanying notes
<PAGE>
Schedule of Investments
Global Bond Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- ------------------------------------------------------------------------------------
ARGENTINA (f) 1.5%
- ------------------------------------------------------------------------------------
<S> <C> <C> <C>
Republic of Argentina
8.000% due 03/20/98 AP 720 $ 697
3.353% due 04/01/01(d) 3,784 3,501
-----------
Total Argentina 4,198
(Cost $4,112) ===========
- ------------------------------------------------------------------------------------
AUSTRALIA (c)(f) 7.7%
- ------------------------------------------------------------------------------------
Commonwealth of Australia
7.500% due 09/15/09 A$ 21,650 17,403
Queensland Treasury Corp.
5.510% due 11/12/97 $ 2,800 2,782
5.520% due 11/14/97 600 596
-----------
Total Australia 20,781
(Cost $20,447) ===========
- ------------------------------------------------------------------------------------
BELGIUM (c)(f) 1.0%
- ------------------------------------------------------------------------------------
Kingdom of Belgium
5.100% due 11/21/04(d) BF 95,900 2,821
-----------
Total Belgium 2,821
(Cost $2,673) ===========
- ------------------------------------------------------------------------------------
CANADA (c)(f) 12.2%
- ------------------------------------------------------------------------------------
Canadian Wheat Board
5.500% due 10/08/97 $ 800 799
5.500% due 11/21/97 13,000 12,899
Commonwealth of Canada
3.700% due 04/02/98 C$ 7,160 5,091
8.000% due 11/01/98 59 44
8.500% due 03/01/00 2,602 2,038
9.000% due 12/01/04 2,440 2,120
4.250% due 12/01/26(h) 6,525 4,902
Rogers Cantel, Inc.
10.500% due 06/01/06 6,000 5,129
-----------
Total Canada 33,022
(Cost $32,044) ===========
- ------------------------------------------------------------------------------------
CROATIA 0.8%
- ------------------------------------------------------------------------------------
Republic of Croatia
6.500% due 07/31/06(d) $ 1,265 1,218
6.500% due 07/30/10(d) 1,130 1,065
-----------
Total Croatia 2,283
(Cost $2,346) ===========
- ------------------------------------------------------------------------------------
CZECH REPUBLIC (f) 1.1%
- ------------------------------------------------------------------------------------
Bayerische Landesbank
11.500% due 10/09/97 CK 102,000 3,099
-----------
Total Czech Republic 3,099
(Cost $3,794) ===========
- ------------------------------------------------------------------------------------
DENMARK (c)(f) 1.2%
- ------------------------------------------------------------------------------------
Kingdom of Denmark
8.000% due 05/15/03 DK 16,400 2,747
8.000% due 03/15/06 3,300 562
-----------
Total Denmark 3,309
(Cost $3,281) ===========
- ------------------------------------------------------------------------------------
FINLAND (c)(f) 13.1%
- ------------------------------------------------------------------------------------
Kansallis-Osake
7.850% due 09/30/43(d) $ 5,000 5,080
Republic of Finland
3.490% due 03/13/98 FM 14,000 2,612
3.630% due 08/14/98 41,000 7,509
7.250% due 04/18/06 87,000 18,200
8.250% due 10/15/10 9,000 2,029
-----------
Total Finland 35,430
(Cost $35,274) ===========
- ------------------------------------------------------------------------------------
FRANCE (c)(f) 1.8%
- ------------------------------------------------------------------------------------
Caisse d'Amortissement
5.500% due 11/12/97 $ 3,300 $ 3,279
5.490% due 12/09/97 1,500 1,484
-----------
Total France 4,763
(Cost $4,763) ===========
- ------------------------------------------------------------------------------------
GERMANY (c)(f) 2.2%
- ------------------------------------------------------------------------------------
Republic of Germany
7.125% due 12/20/02 DM 610 380
7.375% due 01/03/05 3,200 2,039
6.500% due 07/04/27 4,086 2,421
Treuhandanstalt
6.875% due 06/11/03 1,730 1,069
-----------
Total Germany 5,909
(Cost $6,078) ===========
- ------------------------------------------------------------------------------------
GREECE (c)(f) 0.7%
- ------------------------------------------------------------------------------------
Republic of Greece
11.200% due 05/19/03(d) GD 100,000 361
11.100% due 06/17/03(d) 69,100 249
14.000% due 10/23/03 344,000 1,244
-----------
Total Greece 1,854
(Cost $2,017) ===========
- ------------------------------------------------------------------------------------
HONG KONG 1.4%
- ------------------------------------------------------------------------------------
Guangdong Enterprises
8.875% due 05/22/07 $ 3,700 3,769
-----------
Total Hong Kong 3,769
(Cost $3,695) ===========
- ------------------------------------------------------------------------------------
INDONESIA 0.6%
- ------------------------------------------------------------------------------------
Citibank Indonesia
0.000% due 10/24/97 IR 5,000,000 1,511
-----------
Total Indonesia 1,511
(Cost $2,045) ===========
- ------------------------------------------------------------------------------------
ITALY (c)(f) 3.4%
- ------------------------------------------------------------------------------------
Republic of Italy
6.000% due 01/01/00 IL 15,580,000 9,189
-----------
Total Italy 9,189
(Cost $8,547) ===========
- ------------------------------------------------------------------------------------
JAMAICA 0.4%
- ------------------------------------------------------------------------------------
Government of Jamaica
9.625% due 07/02/02 $ 1,100 1,114
-----------
Total Jamaica 1,114
(Cost $1,098) ===========
- ------------------------------------------------------------------------------------
JAPAN (c)(f) 2.1%
- ------------------------------------------------------------------------------------
Government of Japan
4.500% due 06/20/03 JY 550,000 5,307
4.100% due 12/22/03 27,600 262
-----------
Total Japan 5,569
(Cost $5,409) ===========
- ------------------------------------------------------------------------------------
MEXICO (f) 2.8%
- ------------------------------------------------------------------------------------
Banco Nacional de Comercio Exterior
8.000% due 05/06/98 DM 500 289
Republic of Mexico
18.950% due 10/23/97 MP 5,010 639
22.800% due 10/30/97 5,350 680
Third Mexican Acceptance Corp.
7.370% due 03/15/98 $ 2,000 1,950
United Mexican States
6.250% due 12/31/19 5,000 4,138
-----------
Total Mexico 7,696
(Cost $7,506) ===========
</TABLE>
1997 Semiannual Report See accompanying notes 81
<PAGE>
Schedule of Investments (Cont.)
Global Bond Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- -----------------------------------------------------------------------------------
NETHERLANDS (c)(f) 0.3%
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
Kingdom of Netherlands
8.250% due 02/15/07 DG 1,400 $ 844
----------
Total Netherlands 844
(Cost $930) ----------
- -----------------------------------------------------------------------------------
NEW ZEALAND (c)(f) 2.0%
- -----------------------------------------------------------------------------------
Commonwealth of New Zealand
8.000% due 04/15/04 N$ 8,050 5,516
----------
Total New Zealand 5,516
(Cost $5,733) ----------
- -----------------------------------------------------------------------------------
POLAND (c)(f) 5.9%
- -----------------------------------------------------------------------------------
Republic of Poland
21.670% due 10/22/97 PZ 460 133
22.160% due 11/05/97 14,700 4,205
21.850% due 11/12/97 3,650 1,039
22.050% due 11/19/97 7,200 2,041
21.500% due 12/03/97 5,280 1,483
21.640% due 04/22/98 5,640 1,457
21.365% due 05/13/98 2,660 678
21.550% due 06/26/98 6,700 1,670
4.000% due 10/27/14 $ 3,600 3,146
----------
Total Poland 15,852
(Cost $16,063) ----------
- -----------------------------------------------------------------------------------
ROMANIA (c)(f)0.4%
- -----------------------------------------------------------------------------------
Republic of Romania
7.750% due 06/17/02 DM 1,700 984
----------
Total Romania 984
(Cost $945) ----------
- -----------------------------------------------------------------------------------
SOUTH AFRICA (f) 0.5%
- -----------------------------------------------------------------------------------
Republic of South Africa
16.300% due 10/17/97 SR 5,760 1,230
----------
Total South Africa 1,230
(Cost $1,285) ----------
- -----------------------------------------------------------------------------------
SPAIN (c)(f) 1.8%
- -----------------------------------------------------------------------------------
Kingdom of Spain
10.000% due 02/28/05 SP 562,800 4,755
----------
Total Spain 4,755
(Cost $4,336) ----------
- -----------------------------------------------------------------------------------
SUPERNATIONAL (f) 0.8%
- -----------------------------------------------------------------------------------
European Bank for Reconstruction & Development
9.000% due 04/22/98 PP 46,000 1,273
World Bank
10.250% due 04/11/02 29,000 786
----------
Total Supranational 2,059
(Cost $2,849) ----------
- -----------------------------------------------------------------------------------
SWEDEN (c)(f) 10.4%
- -----------------------------------------------------------------------------------
Kingdom of Sweden
11.000% due 01/21/99 SK 22,200 3,156
10.250% due 05/05/00 146,900 21,726
13.000% due 06/15/01 10,300 1,700
8.000% due 08/15/07 9,800 1,470
----------
Total Sweden 28,052
(Cost $25,865) ----------
- -----------------------------------------------------------------------------------
UNITED KINGDOM (c)(f) 9.8%
- -----------------------------------------------------------------------------------
Equitable
8.000% due 08/29/49(d) BP 6,100 9,777
United Kingdom Gilt
6.750% due 11/26/04 570 936
8.500% due 12/07/05 8,596 15,646
----------
Total United Kingdom 26,359
(Cost $25,562) ----------
- -----------------------------------------------------------------------------------
UNITED STATES (c)(f) 22.7%
- -----------------------------------------------------------------------------------
Corporate Bonds and Notes 5.7%
AT&T Capital Corp.
5.900% due 11/13/97 $ 3,500 $ 3,501
Dean Witter Discover
5.836% due 02/01/99(d) 1,000 1,003
5.813% due 02/05/99(d) 1,000 1,002
Hewlett-Packard Finance
5.625% due 11/20/00 DM 1,300 760
Salomon, Inc.
3.650% due 02/14/02(h) $ 6,072 5,903
TCI Communications, Inc.
6.394% due 04/01/02(d) 2,700 2,664
United Air Lines
10.670% due 05/01/04 500 593
----------
15,426
----------
U.S. Treasury Notes 9.9%
6.250% due 01/31/02 5,300 5,351
6.500% due 05/31/02 13,464 13,729
6.625% due 05/15/07 7,400 7,645
----------
26,725
----------
Mortgage-Backed Securities 6.8%
CMS Energy
9.500% due 10/01/97(d) 750 750
Federal Home Loan Mortgage Corp.
7.798% due 05/01/23(d) 1,083 1,138
Federal Housing Administration
7.399% due 02/01/21 1,630 1,690
Federal National Mortgage Assn.
6.500% due 04/01/09 727 724
7.500% due 11/01/01-01/01/02(g) 864 881
7.751% due 03/01/24(d) 403 418
8.063% due 11/01/23(d) 686 713
Independent National Mortgage Corp.
8.303% due 11/25/24(d) 167 171
Government National Mortgage Assn.
6.875% due 11/20/23-10/20/24(d)(g) 2,343 2,411
7.125% due 07/20/22-09/20/23(d)(g) 2,602 2,682
7.375% due 05/20/23-06/20/23(d)(g) 1,234 1,275
Pacific Southwest Bank
6.060% due 06/15/02 2,755 2,747
Residential Funding
8.323% due 03/25/25(d) 1,736 1,780
Resolution Trust Corp.
8.000% due 04/25/25 1,000 1,025
----------
18,405
----------
Asset-Backed Securities 0.3%
Student Loan Marketing Assn.
5.605% due 04/25/04(d) 959 960
----------
Total United States 61,516
(Cost $60,660) ----------
- -----------------------------------------------------------------------------------
PURCHASED OTC CALL OPTIONS (f) 1.6%
- -----------------------------------------------------------------------------------
Government of Japan (OTC)
4.500% due 06/20/03 JY 390,000 686
Strike @ 94.77 Exp.10/23/97(i)
Kingdom of Spain (OTC)
10.000% due 02/28/05 SP 472,800 418
Strike @ 112.09 Exp.11/21/97(i)
Kingdom of Sweden (OTC)
11.000% due 01/21/99 SK 111,300 1,510
Strike @ 96.45 Exp. 11/21/97(i)
10.250% due 05/05/00 89,200 1,739
Strike @ 95.38 Exp. 1/28/98(i) ----------
Total Purchased OTC Call Options 4,353
(Cost $4,140) ----------
- -----------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 29.0%
- -----------------------------------------------------------------------------------
Discount Notes 27.8%
Abbott Laboratories
5.490% due 10/24/97 $ 3,700 3,687
5.510% due 10/27/97 4,300 4,283
Ameritech Corp.
5.480% due 10/06/97 5,200 5,196
</TABLE>
82 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
================================================================================
<S> <C> <C>
AT&T Capital Corp.
5.490% due 10/15/97 $ 3,000 $ 2,994
E.I. Du Pont de Nemours
5.490% due 10/17/97 3,000 2,993
Federal Home Loan Mortgage Corp.
5.500% due 10/10/97 1,800 1,798
Federal National Mortgage Assn.
5.490% due 10/17/97 3,445 3,437
Ford Motor Credit Corp.
5.530% due 10/06/97 4,500 4,496
5.510% due 10/09/97 5,100 5,094
5.500% due 10/10/97 1,200 1,198
General Electric Capital Corp.
5.520% due 11/05/97 1,900 1,890
General Motors Acceptance Corp.
5.580% due 11/05/97 400 398
5.580% due 01/14/98 6,200 6,099
Gillette Co.
6.350% due 10/01/97 6,300 6,300
5.480% due 10/08/97 2,300 2,298
IBM Credit Corp.
5.500% due 11/19/97 1,800 1,787
KFW International Finance, Inc.
5.500% due 10/15/97 2,600 2,594
5.510% due 11/06/97 1,900 1,890
5.490% due 11/13/97 1,200 1,192
5.490% due 11/18/97 6,400 6,353
National Rural Utilities Cooperative
5.500% due 10/09/97 1,900 1,898
5.500% due 11/06/97 2,100 2,088
New Center Asset Trust
5.510% due 10/22/97 1,200 1,196
5.540% due 11/19/97 4,100 4,069
---------
75,228
=========
Repurchase Agreements 0.5%
State Street Bank
5.000% due 10/01/97 1,296 1,296
---------
(Dated 9/30/97. Collateralized by U.S. Treasury
Note 6.25% 08/31/02 valued at $1,322,944.
Repurchase proceeds are $1,296,180.)
U.S. Treasury Bills (b)(g) 0.7%
5.039% due 10/02/97-12/11/97 1,830 1,820
---------
Total Short-Term Instruments 78,344
=========
(Cost $78,345)
Total Investments (a) 139.2% $376,181
(Cost $371,842)
Written Options (e) (0.0%) (20)
(Premiums $12)
Other Assets and Liabilities (Net) (39.2%) (105,965)
---------
Net Assets 100.0% $270,196
=========
Notes to Schedule of Investments ($ in thousands):
(a) At September 30, 1997, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 8,822
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (4,483)
---------
Unrealized appreciation-net $ 4,339
=========
</TABLE>
(b) Securities with an aggregate market value of $1,820
have been segregated with the custodian to cover margin
requirements for the following open future contracts at
September 30, 1997:
<TABLE>
<CAPTION>
Unrealized
Type Contracts Appreciation
- --------------------------------------------------------------------------------
<S> <C> <C>
Italian Lira 10 Year Future (12/97) 125 $ 424
U.S. Treasury 10 Year Note (12/97) 426 328
U.S. Treasury 30 Year Bond (12/97) 100 197
----------
$ 949
==========
</TABLE>
(c) Foreign forward currency contracts outstanding at September 30, 1997:
<TABLE>
<CAPTION>
Principal
Amount Unrealized
Covered Expiration Appreciation/
Type by Contract Month (Depreciation)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Buy A$ 2,473 10/97 $ (30)
Sell 551 10/97 (2)
Buy BF 37,660 10/97 33
Buy 203,132 12/97 148
Buy BP 9,438 10/97 (419)
Buy 1,400 11/97 6
Sell 5,811 10/97 (55)
Sell 7,384 11/97 (145)
Sell 219 01/98 (1)
Buy C$ 29,367 12/97 88
Sell 6,774 12/97 (15)
Sell 6,809 03/98 114
Sell CK 99,020 10/97 (165)
Buy DG 13,600 11/97 276
Buy 770 12/97 0
Buy DK 21,923 10/97 1
Sell 1,794 11/97 (14)
Buy DM 27,104 10/97 20
Buy 5,830 11/97 101
Buy 64,954 12/97 554
Buy 26,016 01/98 (20)
Sell 15,515 10/97 80
Sell 15,062 11/97 (371)
Sell 15,704 12/97 (1)
Buy EC 1,629 10/97 3
Sell 1,629 10/97 27
Sell 2,173 01/98 1
Buy FF 98,541 10/97 304
Buy 4,802 11/97 38
Sell 1,239 10/97 1
Sell 1,578 11/97 (16)
Sell 1,843 12/97 0
Sell FM 80,318 10/97 30
Sell 19,530 11/97 (167)
Sell 7,048 12/97 (11)
Sell 13,481 01/98 6
Buy GD 86,100 10/97 11
Buy IL 20,548,177 10/97 (123)
Buy IP 6,080 10/97 (321)
Buy IR 2,873,000 12/97 (90)
Buy JY 67,500 10/97 2
Buy 4,075,513 11/97 (1,918)
Buy 703,000 12/97 (92)
Sell 67,500 10/97 37
Sell 67,500 12/97 (2)
Sell MR 7,800 12/97 224
Sell N$ 8,123 11/97 7
Sell 380 12/97 (3)
Buy PP 3,830 10/97 (1)
Buy SF 8,712 10/97 21
Sell 21,712 10/97 (300)
Sell 9,001 11/97 (267)
Sell 13,840 12/97 (49)
Sell 24,521 01/98 (62)
Buy SK 68,900 10/97 451
Buy 15,508 12/97 51
Sell 58,659 10/97 55
Sell 823 11/97 (6)
Buy SP 966,046 10/97 (3)
</TABLE>
1997 Semiannual Report See accompanying notes 83
<PAGE>
Schedule of Investments (Cont.)
Global Bond Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Unrealized
Covered Expiration Appreciation/
Type by Contract Month (Depreciation)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Buy 289,000 11/97 $ 107
Buy 647,154 12/97 (2)
Sell 296,695 12/97 (11)
---------------
$ (1,885)
---------------
</TABLE>
(d) Variable Rate Security. The rate listed is as of September 30, 1997.
(e) Premiums received on Written Options:
<TABLE>
Premiums Market
Type Par Received Value
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Put - Indonesian Rupiah vs. U.S. Dollar (OTC) IR 3,400,000 $ 12 $ 20
Strike @ 3,400.00 Exp. 10/30/97
</TABLE>
(f) Principal amount denoted in indicated currency:
A$ - Australian Dollar
AP - Argentine Peso
BF - Belgian Franc
BP - British Pound
C$ - Canadian Dollar
CK - Czech Koruna
DG - Dutch Guilder
DK - Danish Krone
DM - German Mark
EC - European Currency Unit
FF - French Franc
FM - Finnish Markka
GD - Greek Drachma
IL - Italian Lira
IP - Irish Punt
IR - Indonesian Rupiah
JY - Japanese Yen
MP - Mexican Peso
MR - Malaysian Ringgit
N$ - New Zealand Dollar
PP - Philippines Peso
PZ - Polish Zloty
SF - Swiss Franc
SK - Swedish Krona
SP - Spanish Peseta
SR - South Africa Rands
(g) Securities are grouped by coupon and represent a range of maturities.
(h) Principal amount of the security is adjusted for inflation.
(i) Security is subject to outstanding forward sale commitment.
84 PIMCO Funds See accompanying notes
<PAGE>
Schedule of Investments
Emerging Markets Bond Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- -----------------------------------------------------------------------------------
ARGENTINA 22.4%
- -----------------------------------------------------------------------------------
<S> <C> <C>
Republic of Argentina
6.750% due 03/31/05(d) $ 480 $ 457
5.500% due 03/31/23(d) 500 378
----------
Total Argentina 835
(Cost $832) ----------
- -----------------------------------------------------------------------------------
AUSTRALIA 2.7%
- -----------------------------------------------------------------------------------
Western Australia Treasury Corp.
5.500% due 12/18/97 100 99
----------
Total Australia 99
(Cost $99) ----------
- -----------------------------------------------------------------------------------
BRAZIL 24.3%
- -----------------------------------------------------------------------------------
Government of Brazil
6.938% due 04/15/12(d) 500 424
8.000% due 04/15/14 570 485
----------
Total Brazil 909
(Cost $894) ----------
- -----------------------------------------------------------------------------------
BULGARIA 4.4%
- -----------------------------------------------------------------------------------
Government of Bulgaria
2.250% due 07/28/12(d) 250 164
----------
Total Bulgaria 164
(Cost $162) ----------
- -----------------------------------------------------------------------------------
CANADA 2.7%
- -----------------------------------------------------------------------------------
Canadian Wheat Board
5.500% due 11/18/97 100 99
----------
Total Canada 99
(Cost $99) ----------
- -----------------------------------------------------------------------------------
ECUADOR 5.3%
- -----------------------------------------------------------------------------------
Government of Ecuador
6.688% due 02/27/15(d) 273 198
----------
Total Ecuador 198
(Cost $197) ----------
- -----------------------------------------------------------------------------------
FRANCE 5.3%
- -----------------------------------------------------------------------------------
Caisse d'Amortissement
5.550% due 10/10/97 100 100
Electricite de France
5.490% due 12/11/97 100 99
----------
Total France 199
(Cost $199) ----------
- -----------------------------------------------------------------------------------
MEXICO 11.9%
- -----------------------------------------------------------------------------------
United Mexican States
6.250% due 12/31/19 250 207
6.836% due 12/31/19 250 238
----------
Total Mexico 445
(Cost $443) ----------
- -----------------------------------------------------------------------------------
NETHERLANDS 2.7%
- -----------------------------------------------------------------------------------
Polysindo International Finance
9.375% due 07/30/07 100 99
----------
Total Netherlands 99
(Cost $102) ----------
- -----------------------------------------------------------------------------------
POLAND 4.1%
- -----------------------------------------------------------------------------------
Republic of Poland
3.000% due 10/27/24(d) 250 152
----------
Total Poland 152
(Cost $152) ----------
- -----------------------------------------------------------------------------------
ROMANIA (c)(f) 4.0%
- -----------------------------------------------------------------------------------
Republic of Romania
7.750% due 06/17/02 DM 260 150
----------
Total Romania 150
(Cost $142) ----------
- -----------------------------------------------------------------------------------
VENEZUELA 12.8%
- -----------------------------------------------------------------------------------
Government of Venezuela
6.750% due 12/18/07 $ 500 478
----------
Total Venezuela 478
(Cost $473) ----------
- -----------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 67.7%
- -----------------------------------------------------------------------------------
Discount Notes 64.0%
Abbott Laboratories
5.490% due 10/21/97 100 100
AT&T Capital Corp.
5.490% due 10/15/97 100 100
BellSouth Telecommunications, Inc.
5.500% due 10/23/97 100 100
Central Illinois Public Services
5.500% due 11/17/97 100 99
E.I. Du Pont de Nemours
5.550% due 12/02/97 100 99
Emerson Electric Co.
5.480% due 10/17/97 100 100
Export Development Corp.
5.490% due 11/13/97 100 99
Federal Home Loan Mortgage Corp.
5.450% due 10/02/97 400 400
Florida Power Corp.
5.500% due 10/14/97 100 100
Ford Motor Credit Corp.
5.530% due 10/08/97 100 100
General Electric Capital Corp.
5.510% due 11/20/97 100 99
General Motors Acceptance Corp.
5.560% due 11/12/97 100 99
IBM Credit Corp.
5.500% due 10/21/97 100 100
KFW International Finance, Inc.
5.490% due 11/18/97 100 99
Motorola, Inc.
5.490% due 10/28/97 100 100
National Rural Utilities Cooperative
5.490% due 11/18/97 100 99
Pitney Bowes Credit Corp.
5.500% due 10/17/97 100 100
Procter & Gamble Co.
5.510% due 10/10/97 100 100
United Parcel Service Co.
5.500% due 12/03/97 100 99
Wisconsin Electric Power & Light
5.520% due 11/06/97 100 99
Wool International
5.530% due 10/08/97 100 100
----------
2,391
----------
Repurchase Agreements 3.4%
State Street Bank
5.000% due 10/01/97 131 131
(Dated 09/30/97. Collateralized by U.S. Treasury ----------
Note 6.750% 08/15/26 valued at $136,480.
Repurchase proceeds are $131,018.)
U.S. Treasury Bills (b) 0.3%
5.155% due 11/13/97 10 10
----------
Total Short-Term Instruments 2,532
(Cost $2,532) ----------
</TABLE>
1997 Semiannual Report See accompanying notes 85
<PAGE>
Schedule of Investments (Cont.)
Emerging Markets Bond Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Value
(000s)
- --------------------------------------------------------------------------------
<S> <C>
Total Investments (a) 170.3% $ 6,359
(Cost $6,326)
Written Options (e) 0.0% (6)
(Premiums $4)
Other Assets and Liabilities (Net) (70.3%) (2,618)
--------------
Net Assets 100.0% $ 3,735
==============
Notes to Schedule of Investments ($ in thousands):
(a) At September 30, 1997, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 39
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (6)
--------------
Unrealized appreciation-net $ 33
==============
</TABLE>
(b) Securities with an aggregate market value of $10
have been segregated with the custodian to cover margin
requirements for the following open future contracts at
September 30, 1997:
<TABLE>
<CAPTION>
Unrealized
Type Contracts Depreciation
- --------------------------------------------------------------------------------
<S> <C> <C>
German Mark 5 Year Future (DTB) 1 $ (1)
</TABLE>
(c) Foreign forward currency contracts outstanding at September 30, 1997:
<TABLE>
<CAPTION>
Principal
Amount Unrealized
Covered Expiration Appreciation/
Type by Contract Month (Depreciation)
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sell DM 177 10/97 $ (1)
Sell 266 08/98 (6)
Sell EC 32 10/97 (1)
Buy GD 9,900 10/97 1
Buy IR 176,000 10/97 (4)
Buy 176,000 11/97 (1)
Buy 32,000 12/97 (1)
Sell 176,000 10/97 1
Buy MP 265 10/97 0
Sell MR 210 12/97 6
Buy PZ 683 10/97 3
Buy SR 80 10/97 0
---------------
$ (3)
---------------
</TABLE>
(d) Variable Rate Security. The rate listed is as of September 30, 1997.
(e) Premiums received on Written Options:
<TABLE>
<CAPTION>
Premiums Market
Type Par Received Value
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Put - Indonesian Rupiah vs U.S. Dollar (OTC) IR 1,020,000 $ 4 $ 6
Strike @ 3,400.00 Exp. 10/30/97
</TABLE>
(f) Principal amount denoted in indicated currency:
DM - German Mark
EC - European Currency Unit
GD - Greek Drachma
IR - Indonesian Rupiah
MP - Mexican Peso
MR - Malaysian Ringgit
PZ - Polish Zloty
SR - South Africa Rand
86 PIMCO Funds See accompanying notes
<PAGE>
Schedule of Investments
High Yield Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES 81.0%
- --------------------------------------------------------------------------------
<S> <C> <C>
Banking and Finance 5.4%
Americo Life, Inc.
9.250% due 06/01/05 $ 2,000 $ 2,065
Arvin Capital
9.500% due 02/01/27 19,000 20,344
Bay View Capital Corp.
9.125% due 08/15/07 8,000 8,290
First Nationwide Holdings
12.500% due 04/15/03 5,000 5,638
10.625% due 10/01/03 4,350 4,807
Helicon Group
11.000% due 11/01/03(b) 2,000 2,115
Imperial Credit Industries, Inc.
9.875% due 01/15/07 2,300 2,335
ITT Publimedia BV
9.375% due 09/15/07 4,200 4,368
Polysindo International Finance
9.375% due 07/30/07 12,600 12,443
Reliance Group Holdings
9.000% due 11/15/00 14,000 14,653
Trizec Finance Ltd.
10.875% due 10/15/05 3,919 4,517
----------
81,575
==========
Industrials 63.3%
Abbey Healthcare Group
9.500% due 11/01/02 10,220 10,507
Albritton Communications
9.750% due 11/30/07 5,500 5,486
American Airlines
10.610% due 03/04/10 650 850
American Standard
9.250% due 12/01/16 8,690 9,092
Amerigas Partners L.P.
10.125% due 04/15/07 4,200 4,473
Ameriserv Food Co.
10.125% due 07/15/07 16,550 17,182
Ametek, Inc.
9.750% due 03/15/04 6,350 6,779
Amphenol Corp.
9.875% due 05/15/07 6,500 6,923
Anker Coal Group
9.750% due 10/01/07 2,000 2,040
Archibald Candy Corp.
10.250% due 07/01/04 1,000 1,055
Bell & Howell Co.
10.750% due 10/01/02 4,000 4,220
Benedek Broadcasting Corp.
11.875% due 03/01/05 14,765 16,648
Building Materials Corp.
0.000% due 07/01/04(c) 17,400 16,226
8.625% due 12/15/06 500 519
Cablevision Systems Corp.
8.125% due 08/15/09 7,000 7,114
9.875% due 02/15/13 2,000 2,165
10.500% due 05/15/16 11,000 12,439
9.875% due 04/01/23 4,000 4,340
Century Communications Corp.
8.750% due 10/01/07 5,000 4,959
CF Cable TV, Inc.
9.125% due 07/15/07 9,000 9,833
Clark Oil Refining Corp.
10.500% due 12/01/01 1,400 1,446
Clark R & M Holdings
0.000% due 02/15/00 14,000 11,078
Coleman
7.100% due 06/13/06 6,750 6,099
7.250% due 06/13/08 2,000 1,734
Comcast Cellular
9.500% due 05/01/07 20,125 21,131
Cumberland Farms
10.500% due 10/01/03 8,676 8,719
Delta Air Lines
10.790% due 03/26/14 2,264 2,898
Dimon, Inc.
8.875% due 06/01/06 3,000 3,214
Doane Products Co.
10.625% due 03/01/06 2,000 2,150
Envirosource, Inc.
9.750% due 06/15/03 10,770 10,834
EZ Communication, Inc.
9.750% due 12/01/05 8,200 9,061
Falcon Drilling, Inc.
9.750% due 01/15/01 6,500 6,906
Ferrellgas Partners L.P.
10.000% due 08/01/01 10,100 10,807
9.375% due 06/15/06 6,375 6,726
Foamex L.P.
9.875% due 06/15/07 1,700 1,768
Forcenergy, Inc.
9.500% due 11/01/06 4,300 4,526
8.500% due 02/15/07 4,100 4,100
Gardern State Newspapers
8.750% due 10/01/09 11,700 11,846
Globalstar L.P.
11.375% due 02/15/04 8,350 8,726
11.250% due 06/15/04 4,000 4,150
Goss Graphic Systems, Inc.
12.000% due 10/15/06 6,000 6,750
Granite Broadcasting Corp.
10.375% due 05/15/05 5,250 5,499
Griffin Gaming
0.000% due 06/30/00(c) 7,330 7,422
GST Equipment Funding
13.250% due 05/01/07 5,000 5,825
Gulf Canada Resources
9.250% due 01/15/04 12,575 13,330
HMH Properties, Inc.
9.500% due 05/15/05 12,750 13,435
8.875% due 07/15/07 8,500 8,755
Hollinger International Publishing
8.625% due 03/15/05 4,750 4,898
9.250% due 02/01/06 7,800 8,112
HS Resources
9.875% due 12/01/03 4,250 4,436
Huntsman Corp.
9.312% due 03/20/07(b) 6,500 6,679
Huntsman Packaging Corp.
9.125% due 10/01/07 3,000 3,075
Integrated Health Services
10.250% due 04/30/06 770 830
9.500% due 09/15/07 7,000 7,245
9.250% due 01/15/08 6,900 6,900
ISP Holdings, Inc.
9.000% due 10/15/03 22,500 23,648
J. Ray McDermott
9.375% due 07/15/06 10,400 10,881
J.Q. Hammons Hotels
8.875% due 02/15/04 11,500 11,716
Jones Intercable, Inc.
8.875% due 04/01/07 10,060 10,538
K-III Communications Co.
8.500% due 02/01/06 11,490 11,749
Kaiser Aluminum & Chemical
9.875% due 02/15/02 8,750 9,143
10.875% due 10/15/06 1,800 1,951
KCS Energy, Inc.
11.000% due 01/15/03 2,600 2,841
Keystone Consolidated Industries
9.625% due 08/01/07 3,800 3,900
L-3 Communications Corp.
10.375% due 05/01/07 2,250 2,430
Lenfest Communications
8.375% due 11/01/05 13,650 13,787
Magnum Hunter Resources, Inc.
10.000% due 06/01/07 3,250 3,323
Marcus Cable
0.000% due 08/01/04(c) 11,400 10,346
Marsh Supermarket, Inc.
8.875% due 08/01/07 7,250 7,232
</TABLE>
1997 Semiannual Report See accompanying notes 87
<PAGE>
Schedule of Investments (Cont.)
High Yield Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
<S> <C> <C>
Moog, Inc.
10.000% due 05/01/06 $ 3,250 $ 3,461
Newsquest Capital
11.000% due 05/01/06 4,250 4,760
NL Industries
0.000% due 10/15/05(c) 12,000 11,865
Nuevo Energy Co.
9.500% due 04/15/06 3,000 3,218
Orion Network Systems, Inc.
11.250% due 01/15/07 11,875 13,143
0.000% due 01/15/07(c) 4,000 2,680
Owens & Minor
10.875% due 06/01/06 5,850 6,479
Pacific Lumber
10.500% due 03/01/03 9,750 10,140
Paperboard Industries
8.375% due 09/15/07 5,000 5,081
Parker Drilling Corp.
9.750% due 11/15/06 9,950 10,696
Pathmark Stores, Inc.
9.625% due 05/01/03 3,450 3,433
Phar-Mor, Inc.
11.720% due 09/11/02 8,000 8,260
Polymer Group, Inc.
9.000% due 07/01/07 12,000 12,180
Pride International, Inc.
9.375% due 05/01/07 7,450 7,990
Printpack, Inc.
9.875% due 08/15/04 6,450 6,805
Repap Wisconsin, Inc.
9.250% due 02/01/02 1,900 2,005
Revlon Consumer Products Corp.
9.375% due 04/01/01 7,500 7,800
10.500% due 02/15/03 2,500 2,672
Riviera Holdings Corp.
11.000% due 12/31/02 4,756 5,125
10.000% due 08/15/04 8,350 8,413
RJR Nabisco
8.000% due 07/15/01 2,000 2,057
8.625% due 12/01/02 5,500 5,794
Rogers Cablesystems, Inc.
10.000% due 03/15/05 7,500 8,325
Rogers Cantel Mobile
8.300% due 10/01/07 5,000 5,025
9.375% due 06/01/08 15,500 16,585
Salem Communications
9.500% due 10/01/07 4,350 4,350
SC International Services, Inc.
9.250% due 09/01/07 8,200 8,344
Sea Containers
9.500% due 07/01/03(b) 750 776
Shoppers Food Warehouse
9.750% due 06/15/04 6,000 6,143
Showboat, Inc.
9.250% due 05/01/08 9,750 10,140
Silgan Holdings, Inc.
9.000% due 06/01/09 11,450 11,751
Smith's Food & Drug Centers, Inc.
8.640% due 07/02/12 9,575 10,033
9.200% due 07/02/18 2,750 3,032
Southern Foods Group Capital
9.875% due 09/01/07 6,000 6,255
Specialty Retailers
8.500% due 07/15/05 3,100 3,193
9.000% due 07/15/07 1,000 1,025
Statia Terminals
11.750% due 11/15/03 5,250 5,572
Station Casinos
9.625% due 06/01/03 3,150 3,166
Stevens, JP & Co.
9.000% due 03/01/17 10,000 10,450
Stone Container
9.062% due 02/01/03(b) 10,000 10,119
11.500% due 10/01/04 2,000 2,158
Sun International Hotels
9.000% due 03/15/07 7,500 7,763
Synthetic Industries, Inc.
9.250% due 02/15/07 2,150 2,233
Teleport Communications
0.000% due 07/01/07(c) 18,150 14,339
Telewest Communications
9.625% due 10/01/06 11,000 11,426
Tenet Healthcare Corp.
10.125% due 03/01/05 8,300 9,172
8.625% due 01/15/07 3,500 3,640
TFM SA DE CV
9.750% due 06/30/03(b) 4,000 4,000
10.250% due 06/15/07 5,175 5,460
Trans-Resources, Inc.
11.875% due 07/01/02 7,080 7,540
Transamerican Energy
11.500% due 06/15/02 1,525 1,525
Unisys Corp.
12.000% due 04/15/03 14,900 16,781
11.750% due 10/15/04 5,000 5,669
US Air, Inc.
9.625% due 09/01/03 11,490 12,352
US Can Corp.
10.125% due 10/15/06 3,575 3,781
Vencor, Inc.
8.625% due 07/15/07 13,000 13,244
Vintage Petroleum
9.000% due 12/15/05 10,490 10,910
West Point Stevens
8.750% due 12/15/01 2,500 2,613
9.375% due 12/15/05 7,500 7,913
World Color Press, Inc.
9.125% due 03/15/03 13,085 13,739
Young Broadcasting, Inc.
9.000% due 01/15/06 11,000 11,055
8.750% due 06/15/07 4,000 3,920
---------
947,019
---------
Utilities 12.3%
AES Corp.
10.250% due 07/15/06 14,235 15,659
Beaver Valley Funding Corp.
9.000% due 06/01/17 34,000 36,988
Bell Cablemedia PLC
0.000% due 09/15/05(c) 2,000 1,744
California Energy
9.875% due 06/30/03 5,000 5,388
10.250% due 01/15/04(b) 17,815 19,359
Calpine Corp.
9.250% due 02/01/04 7,500 7,725
8.750% due 07/15/07 14,650 14,980
CMS Energy
8.125% due 05/15/02 8,000 8,210
Coho Energy, Inc.
8.875% due 10/15/07 5,500 5,458
Dial Call Communications
0.000% due 04/15/04(c) 15,000 14,081
Espirito Santo Centrais
10.000% due 07/15/07 6,500 6,546
First PV Funding
10.150% due 01/15/16 1,020 1,088
Niagara Mohawk Power
9.990% due 05/11/04 2,500 2,549
7.750% due 05/15/06 1,100 1,124
9.500% due 03/01/21 2,500 2,641
7.875% due 04/01/24 7,500 7,483
North Atlantic Energy
9.050% due 06/01/02 7,795 7,880
Public Service of New Hampshire
9.170% due 05/15/98 1,000 998
Sprint Spectrum, L.P.
8.845% due 02/10/06(b) 1,696 1,712
8.975% due 02/10/06(b) 2,967 2,999
9.095% due 02/10/06(b) 2,837 2,876
Vanguard Cellular Systems, Inc.
9.375% due 04/15/06 7,500 7,838
</TABLE>
88 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
<S> <C> <C>
Wilmington Trust Co. - Tucson Electric
10.211% due 01/01/09 $ 500 $ 537
10.732% due 01/01/13 6,993 7,678
-----------
183,541
-----------
Total Corporate Bonds and Notes 1,212,245
(Cost $1,157,260) ===========
- --------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES 3.1%
- --------------------------------------------------------------------------------
Collateralized Mortgage Obligations 2.3%
Asset Securitization Corp.
7.384% due 08/13/29 1,500 1,448
Federal Deposit Insurance Corp.
6.906% due 11/25/26(b) 400 411
Manufacturers Hanover Corp.
7.464% due 12/16/25(b) 853 854
8.144% due 12/16/25(b) 3,794 3,609
NationsBank Corp.
8.122% due 05/25/28(b) 3,835 2,655
Red Mountain Funding Corp.
9.150% due 11/28/27 5,727 5,853
Resolution Trust Corp.
7.346% due 09/25/20(b) 707 593
9.250% due 06/25/23 3,384 3,407
9.050% due 08/25/23 872 879
9.500% due 05/25/24 93 93
8.500% due 03/25/25 21 20
6.900% due 02/25/27(b) 9,447 9,093
7.000% due 05/25/27 6,357 6,138
-----------
35,053
===========
Other Mortgage-Backed Securities 0.5%
LTC Commercial Corp.
9.200% due 08/04/23 3,235 3,511
Structured Asset Securities Corp.
7.050% due 11/25/02 4,000 3,469
-----------
6,980
-----------
Stripped Mortgage-Backed Securities 0.3%
Federal National Mortgage Assn. (IO)
6.000% due 07/25/05 2,954 164
7.000% due 07/25/08 7,152 1,061
6.500% due 06/25/17 2,937 256
7.000% due 04/25/19 12,000 2,658
Fund America (IO)
9.590% due 10/20/21 1,732 242
-----------
4,381
-----------
Total Mortgage-Backed Securities 46,414
(Cost $45,676) ===========
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES 1.0%
- --------------------------------------------------------------------------------
Airplanes Pass Through Trust
10.875% due 03/15/19 5,200 5,984
Arena Brands, Inc.
8.883% due 06/01/02(b) 84 84
8.967% due 06/01/02(b) 21 21
9.125% due 06/01/02(b) 2,779 2,786
9.383% due 06/01/02(b) 4,969 4,981
9.469% due 06/01/02(b) 74 74
-----------
Total Asset-Backed Securities 13,930
(Cost $13,354) ===========
- --------------------------------------------------------------------------------
SOVEREIGN ISSUES 2.1%
- --------------------------------------------------------------------------------
Republic of Argentina
6.750% due 03/31/05(b) 18,998 18,059
5.500% due 03/31/23(b) 9,000 6,795
Third Mexican Acceptance Corp.
7.370% due 03/15/98 1,000 975
United Mexican States
6.250% due 12/31/19 7,000 5,801
-----------
Total Sovereign Issues 31,630
(Cost $26,090) ===========
</TABLE>
<TABLE>
<CAPTION>
Value
(000s)
- --------------------------------------------------------------------------------
PREFERRED STOCK 6.0%
- --------------------------------------------------------------------------------
Shares
<S> <C> <C>
California Federal Bank 16,500 $ 1,886
Fresenius Medical Care 28,195 29,323
K-III Communications 70,000 7,070
Long Island Lighting Co. 30,000 3,113
Newscorp Overseas Ltd. 133,200 3,363
Sig Capital Trust 7,000 7,077
Time Warner, Inc. 34,427 39,343
-----------
Total Preferred Stock 91,175
(Cost $85,761) ===========
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 6.0%
- --------------------------------------------------------------------------------
Principal
Amount
(000s)
Discount Notes 5.5%
Ameritech Corp.
5.480% due 10/06/97 $ 4,600 4,596
Ford Motor Credit Corp.
5.490% due 10/06/97 200 200
5.500% due 10/10/97 15,000 14,979
General Motors Acceptance Corp.
5.510% due 11/12/97 1,800 1,788
5.570% due 01/05/98 26,300 25,908
Gillette Co.
6.350% due 10/01/97 3,900 3,900
IBM Credit Corp.
5.500% due 11/19/97 20,000 19,850
KFW International Finance, Inc.
5.480% due 10/20/97 3,200 3,191
National Rural Utilities Cooperative
5.500% due 11/06/97 3,200 3,182
New Center Asset Trust
5.510% due 11/19/97 4,300 4,268
SBC Communications, Inc.
5.500% due 11/07/97 1,000 994
-----------
82,856
===========
Repurchase Agreements 0.5%
State Street Bank
5.000% due 10/01/97 6,568 6,568
(Dated 09/30/97. Collateralized by U.S. Treasury -----------
Note 6.250% 08/31/02 valued at $6,700,888.
Repurchase proceeds are $6,568,912.)
Total Short-Term Instruments 89,424
(Cost $89,425) -----------
Total Investments (a) 99.2% $ 1,484,708
(Cost $1,417,566)
Other Assets and Liabilities (Net) 0.8% 12,464
-----------
Net Assets 100.0% $ 1,497,172
===========
Notes to Schedule of Investments ($ in thousands):
(a) At September 30, 1997, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 68,691
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (1,549)
-----------
Unrealized appreciation-net $ 67,142
===========
</TABLE>
(b) Variable Rate Security. The rate listed is as of September 30, 1997.
(c) Security becomes interest bearing at a future date.
1997 Semiannual Report See accompanying notes 89
<PAGE>
Schedule of Investments
Money Market Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES 1.3%
- --------------------------------------------------------------------------------
<S> <C> <C>
Banking and Finance 0.8%
Chrysler Financial Corp.
5.710% due 01/12/98 $ 500 $ 500
Lehman Brothers, Inc.
5.750% due 02/15/98 721 720
-----------
1,220
===========
Industrials 0.5%
Phillips Petroleum
9.500% due 11/15/97 750 753
-----------
Total Corporate Bonds and Notes 1,973
(Cost $1,973) ===========
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 67.7%
- --------------------------------------------------------------------------------
Discount Notes 67.4%
Archer Daniels Midland
6.350% due 10/01/97 2,500 2,500
Australian Wheat Board
5.500% due 10/10/97 6,000 5,992
Becton Dickinson & Co.
5.550% due 10/23/97 6,000 5,980
Emerson Electric Co.
5.500% due 11/07/97 6,000 5,966
Federal National Mortgage Assn.
5.650% due 10/07/97 2,850 2,847
Ford Motor Credit Corp.
5.500% due 10/02/97 7,500 7,499
General Electric Capital Corp.
5.500% due 10/07/97 8,200 8,192
IBM Credit Corp.
5.540% due 01/22/98 7,500 7,370
Kellogg Co.
5.520% due 11/06/97 6,000 5,967
KFW International Finance, Inc.
5.510% due 10/15/97 6,500 6,486
Monsanto Co.
5.500% due 11/12/97 6,500 6,458
National Rural Utilities Cooperative
5.580% due 01/20/98 7,500 7,371
Oesterreichische
5.500% due 12/08/97 6,000 5,938
Pitney Bowes Credit Corp.
5.550% due 01/15/98 6,500 6,394
Wells Fargo & Co.
5.480% due 10/20/97 7,500 7,478
Western Australia Treasury Corp.
5.480% due 10/31/97 5,500 5,475
-----------
97,913
===========
Repurchase Agreements 0.3%
State Street Bank
5.000% due 10/01/97 381 381
(Dated 09/30/97. Collateralized by U.S. Treasury -----------
Note 5.750% 12/31/98 valued at $390,715.
Repurchase proceeds are $381,053.)
Total Short-Term Instruments 98,294
(Cost $98,294) ===========
Total Investments 69.0% $ 100,267
(Cost $100,267)
Other Assets and Liabilities (Net) 31.0% 44,993
-----------
Net Assets 100.0% $ 145,260
===========
</TABLE>
90 PIMCO Funds See accompanying notes
<PAGE>
Schedule of Investments
StocksPLUS Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- -----------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES 30.7%
- -----------------------------------------------------------------------------------
<S> <C> <C>
Banking and Finance 20.5%
Advanta Corp.
6.136% due 01/15/99(d) $ 2,000 $ 1,983
Ahmanson (H.F.) & Co.
6.180% due 01/15/98 9,300 9,316
AT&T Capital Corp.
6.260% due 02/18/99 10,000 10,026
6.920% due 04/29/99 5,200 5,264
Capital One Bank
8.125% due 02/27/98 2,000 2,017
6.730% due 06/04/98 2,000 2,010
6.163% due 08/13/98(d) 7,500 7,512
Caterpillar Financial
5.550% due 04/01/99(d) 2,000 2,003
Chrysler Financial Corp.
6.190% due 10/27/97 2,000 2,001
Den Danske Bank
6.000% due 06/30/00(d) 450 445
Ford Motor Credit Corp.
5.810% due 11/09/98(d) 500 502
5.680% due 03/30/99(d) 250 250
6.130% due 04/05/99(d) 340 338
6.080% due 08/14/00(d) 17,000 17,006
General Motors Acceptance Corp.
5.970% due 03/16/99(d) 2,000 2,013
Kansallis-Osake
7.850% due 09/30/43(d) 1,500 1,524
Lehman Brothers, Inc.
6.540% due 01/05/98 5,000 5,010
6.250% due 06/29/98 2,000 2,004
8.875% due 11/01/98 1,685 1,733
6.100% due 08/11/00(d) 9,400 9,403
Merrill Lynch & Co.
7.000% due 10/10/00(d) 3,000 3,066
Residential Reinsurance
11.440% due 12/15/08(d) 2,500 2,514
Salomon, Inc.
5.790% due 11/26/97 2,000 2,001
7.000% due 01/20/98 250 251
5.650% due 02/10/98 390 390
8.910% due 02/16/98 3,000 3,040
5.750% due 03/31/98 2,000 2,001
5.888% due 04/05/99(d) 500 498
6.331% due 06/27/01(d) 6,800 6,818
3.650% due 02/14/02(g) 2,024 1,968
----------
104,907
----------
Industrials 7.8%
Air Canada
6.300% due 07/31/05(d) 12,000 11,310
Amerco, Inc.
6.800% due 09/18/98 6,000 6,031
Centerior Fuel Corp.
9.200% due 08/02/98 1,000 1,000
COFIRI International, Inc.
6.140% due 10/27/00(d) 2,000 1,996
Falcon Drilling, Inc.
9.750% due 01/15/01 2,000 2,125
Merita
6.163% due 12/01/05(d) 1,000 1,000
RJR Nabisco
8.000% due 07/15/01 500 514
TCI Communications, Inc.
6.359% due 04/03/02(d) 11,600 11,620
6.419% due 03/11/03(d) 4,000 4,003
----------
39,599
----------
Utilities 2.4%
Beaver Valley Funding Corp.
8.250% due 06/01/03 2,981 3,051
Cleveland Electric Illuminating Co.
8.170% due 11/30/98 1,000 1,019
El Paso Electric Co.
7.250% due 02/01/99 1,000 1,005
Gulf States Utilities
9.720% due 07/01/98 3,059 3,133
North Atlantic Energy
9.050% due 06/01/02 1,308 1,320
Texas Utilities Co.
6.258% due 05/01/99(d) 2,500 2,501
----------
12,029
----------
Total Corporate Bonds and Notes 156,535
(Cost $155,789) ----------
- -----------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS 4.2%
- -----------------------------------------------------------------------------------
Treasury Inflation Protected Securities
3.625% due 07/15/02(g) 21,345 21,292
----------
Total U.S. Treasury Obligations 21,292
(Cost $21,241) ----------
- -----------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES 15.6%
- -----------------------------------------------------------------------------------
Collateralized Mortgage Obligations 6.5%
Bank Mart
7.590% due 03/01/19(d) 10,264 10,511
Citicorp Mortgage Securities, Inc.
8.500% due 06/25/06 963 972
7.634% due 09/25/18(d) 90 90
Countrywide
6.500% due 02/25/24 774 773
Donaldson, Lufkin & Jenrette
7.200% due 10/17/20(d) 383 390
Federal National Mortgage Assn.
7.816% due 04/25/20(d) 486 491
Greenwich
7.285% due 10/25/22(d) 47 47
Manufacturers Hanover Corp.
7.464% due 12/16/25(d) 2,344 2,347
PaineWebber Mortgage
6.557% due 02/25/01(d) 2,002 1,994
Prudential Home
7.050% due 05/25/24(d) 1,986 1,995
Red Mountain Funding Corp.
6.450% due 11/28/27 1,630 1,614
Residential Funding
6.135% due 03/25/18(d) 4,175 4,099
Resolution Trust Corp.
7.588% due 01/25/20(d) 890 905
7.097% due 05/25/21(d) 73 73
6.389% due 09/25/21(d) 1,441 1,430
8.000% due 07/25/24 3,343 3,379
6.525% due 05/25/29(d) 792 793
Sears Mortgage Securities
8.661% due 05/25/32(d) 39 39
Structured Asset Securities Corp.
7.750% due 02/25/28 1,437 1,468
----------
33,410
----------
Federal Home Loan Mortgage Corporation 1.1%
6.615% due 07/01/19(d) 2,323 2,339
7.891% due 06/01/22(d) 1,010 1,059
7.870% due 12/01/22(d) 1,358 1,428
8.500% due 04/01/25-06/01/25(f) 634 664
----------
5,490
----------
Federal National Mortgage Association 3.9%
6.103% due 04/01/18(d) 135 135
6.110% due 05/01/17-05/01/36(d)(f) 8,912 8,858
6.113% due 07/01/18(d) 727 728
6.114% due 11/01/18-02/01/31(d)(f) 8,003 7,972
6.115% due 08/01/29-11/01/35(d)(f) 1,245 1,240
7.288% due 05/01/22(d) 802 821
9.000% due 01/01/99 36 36
----------
19,790
----------
Government National Mortgage Association 2.6%
5.500% due 04/20/26-05/20/26(d)(f) 962 959
6.000% due 02/20/26-05/20/26(d)(f) 9,439 9,570
7.125% due 09/20/22(d) 2,871 2,960
----------
13,489
----------
</TABLE>
1997 Semiannual Report See accompanying notes 91
<PAGE>
Schedule of Investments (Cont.)
StocksPLUS Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- -----------------------------------------------------------------------------------
<S> <C> <C>
Other Mortgage-Backed Securities 1.0%
California Federal Savings & Loan
6.645% due 01/01/19(d) $ 70 $ 69
Fund America
7.667% due 06/25/23(d) 230 235
Great Western Savings & Loan
6.357% due 01/25/18(d) 100 99
Guardian
7.401% due 01/25/21(d) 1,221 839
J.P. Morgan & Co.
6.756% due 01/25/18(d) 861 853
Resolution Trust Corp.
6.933% due 12/25/23(d) 47 47
Structured Asset Securities Corp.
6.810% due 09/25/36(d) 1,605 1,606
Western Federal Savings & Loan
6.414% due 10/25/18(d) 520 516
6.837% due 03/25/19(d) 71 71
6.614% due 06/25/19(d) 656 654
----------
4,989
----------
Stripped Mortgage-Backed Securities 0.5%
Federal Home Loan Mortgage Corp. (IO)
7.000% due 08/15/13 138 3
92.576% due 07/15/16 95 1,068
Federal National Mortgage Assn. (IO)
6.000% due 11/25/00 1,014 82
7.000% due 07/25/06 642 89
6.500% due 02/25/21(d) 8,037 916
7.000% due 07/25/21 1,418 248
Prudential Home (IO)
4.299% due 02/25/22 17 36
----------
2,442
----------
Total Mortgage-Backed Securities 79,610
(Cost $78,758) ----------
- -----------------------------------------------------------------------------------
ASSET-BACKED SECURITIES 10.7%
- -----------------------------------------------------------------------------------
Community Trust Bancorp, Inc.
6.500% due 09/15/03 5,978 6,006
Green Tree Financial Group
6.420% due 04/15/28 5,000 5,040
6.220% due 02/15/29 20,000 20,086
LIBOR-Index Certificates
6.413% due 08/31/98(d) 3,000 3,000
9.262% due 10/01/03(d) 2,500 2,500
Standard Credit Card Master Trust
8.875% due 09/07/99 17,300 17,743
----------
Total Asset-Backed Securities 54,375
(Cost $54,196) ----------
- -----------------------------------------------------------------------------------
SOVEREIGN ISSUES 5.0%
- -----------------------------------------------------------------------------------
Republic of Argentina
6.750% due 03/31/05(d) 17,376 16,551
Republic of Poland
6.938% due 10/27/24(d) 9,400 9,212
----------
Total Sovereign Issues 25,763
(Cost $24,685) ----------
- -----------------------------------------------------------------------------------
FOREIGN CURRENCY-DENOMINATED ISSUES (c)(e) 2.0%
- -----------------------------------------------------------------------------------
Commonwealth of Canada
4.250% due 12/01/26(g) C$ 5,154 3,872
Commonwealth of New Zealand
4.500% due 02/15/16(g) N$ 9,750 6,049
Kingdom of Sweden
10.250% due 05/05/00 SK 1,000 148
----------
Total Foreign Currency-Denominated Issues 10,069
(Cost $10,449) ----------
- -----------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 37.8%
- -----------------------------------------------------------------------------------
Certificates of Deposit 2.2%
Banco Latino
6.400% due 03/31/98 $ 3,100 $ 3,099
6.550% due 04/14/98 6,200 6,206
6.430% due 05/28/98 1,900 1,900
----------
11,205
----------
Discount Notes 30.7%
Abbott Laboratories
5.490% due 10/22/97 2,100 2,093
American Express Credit
5.500% due 11/12/97 16,600 16,494
Ameritech Corp.
5.480% due 10/06/97 1,000 999
AT&T Capital Corp.
5.856% due 05/05/98 10,900 10,541
Caisse d'Amortissement
5.500% due 11/12/97 6,700 6,657
Canadian Wheat Board
5.490% due 10/08/97 600 599
5.490% due 11/14/97 1,300 1,291
E.I. Du Pont de Nemours
5.490% due 10/17/97 5,100 5,088
Federal Home Loan Mortgage Corp.
5.500% due 10/10/97 4,700 4,694
General Electric Capital Corp.
5.540% due 10/09/97 9,900 9,888
General Motors Acceptance Corp.
5.520% due 10/08/97 16,000 15,983
IBM Credit Corp.
5.500% due 11/05/97 10,300 10,245
5.500% due 11/19/97 6,500 6,451
KFW International Finance, Inc.
5.480% due 10/20/97 2,200 2,194
5.490% due 11/13/97 10,000 9,934
5.490% due 11/18/97 6,600 6,552
National Rural Utilities Cooperative
5.500% due 10/10/97 2,000 1,997
5.500% due 10/27/97 3,300 3,287
5.510% due 10/28/97 1,000 996
5.500% due 11/06/97 8,500 8,453
New Center Asset Trust
5.500% due 10/06/97 5,000 4,996
5.510% due 11/19/97 9,600 9,528
TCI Communications, Inc.
6.062% due 05/08/98 2,300 2,223
Western Australia Treasury Corp.
5.480% due 11/03/97 15,300 15,223
----------
156,406
----------
Repurchase Agreements 0.5%
State Street Bank
5.000% due 10/01/97 2,619 2,619
(Dated 09/30/97. Collateralized by U.S. Treasury ----------
Note 6.250% 08/31/02 valued at $2,676,300.
Repurchase proceeds are $2,619,364.)
U.S. Treasury Bills (b)(f) 4.4%
5.357% due 10/01/97-12/11/97 22,790 22,700
----------
Total Short-Term Instruments 192,930
(Cost $192,890) ----------
Total Investments (a) 106.0% $ 540,574
(Cost $538,009)
Other Assets and Liabilities (Net) (6.0%) (30,428)
----------
Net Assets 100.0% $ 510,146
----------
</TABLE>
92 PIMCO Funds See accompanying notes
<PAGE>
- --------------------------------------------------------------------------------
Notes to Schedule of Investments ($ in thousands):
(a) At September 30, 1997, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 3,360
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (795)
-----------
Unrealized appreciation-net $ 2,565
-----------
</TABLE>
(b) Securities with an aggregate market value of $22,700
have been segregated with the custodian to cover margin
requirements for the following open future contracts at
September 30, 1997:
<TABLE>
<CAPTION>
Unrealized
Type Contracts Appreciation
- ------------------------------------------------------------------------------
<S> <C> <C>
S&P 500 Index (12/97) 802 $ 8,159
</TABLE>
(c) Foreign forward currency contracts outstanding at September 30, 1997:
<TABLE>
<CAPTION>
Principal
Amount Unrealized
Covered Expiration Appreciation/
Type by Contract Month (Depreciation)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Sell C$ 2,128 11/97 $ (3)
Sell 2,814 12/97 0
Sell N$ 7,905 11/97 6
Sell 1,668 12/97 (9)
Sell SK 6 10/97 0
Sell 1,843 11/97 (14)
-----------------
$ (20)
=================
</TABLE>
(d) Variable Rate Security. The rate listed is as of September 30, 1997.
(e) Principal amount denoted in indicated currency:
C$ - Canadian Dollar
N$ - New Zealand Dollar
SK - Swedish Krona
(f) Securities are grouped by coupon and represent a range of maturities.
(g) Principal amount of the security is adjusted for inflation.
(h) Swap agreements outstanding at September 30, 1997:
<TABLE>
<CAPTION>
Notional Unrealized
Type Amount Appreciation
- --------------------------------------------------------------------------------
<S> <C> <C>
Receive total return on S&P 500 Index and
pay floating rate based on 1 month LIBOR.
Broker: Morgan Stanley
Exp. 06/30/98 $ 48,378 $ 0
Broker: Deutsche Bank AG London
Exp. 03/31/98 51,554 0
Broker: Lehman Brothers
Exp. 12/31/97 34,318 0
-------------
$ 0
=============
</TABLE>
1997 Semiannual Report See accompanying notes 93
<PAGE>
Schedule of Investments
Strategic Balanced Fund
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- -----------------------------------------------------------------------------
CORPORATE BONDS AND NOTES 32.1%
- -----------------------------------------------------------------------------
<S> <C> <C>
Banking and Finance 23.3%
Advanta National Bank
6.136% due 01/15/99(d) $ 400 $ 397
5.594% due 01/26/98 400 398
6.019% due 01/30/98(d) 300 299
Ahmanson (H.F.) & Co.
6.150% due 03/24/98 200 200
AT&T Capital Corp.
6.070% due 10/24/97 300 300
5.900% due 01/23/98(d) 1,100 1,100
6.060% due 02/20/98 1,100 1,102
Bear Stearns
6.050% due 08/25/00(d) 1,400 1,400
Chrysler Financial Corp.
5.890% due 07/28/00(d) 100 100
Ford Motor Credit Corp.
6.080% due 08/14/00(d) 100 100
Lehman Brothers, Inc.
6.540% due 01/05/98 500 501
6.080% due 01/12/99(d) 942 941
NationsBank Corp.
7.033% due 02/18/02(d) 100 98
Okobank
7.375% due 09/27/49(d) 500 510
PaineWebber
7.750% due 10/20/97 300 300
Republic New York Corp.
5.799% due 10/28/02(d) 100 98
Salomon, Inc.
5.650% due 02/10/98 300 300
3.650% due 02/14/02(g) 1,093 1,062
Sparbanken Sverige AB
7.773% due 10/29/49(d) 500 507
---------
9,713
---------
Industrials 5.1%
Gulf Canada Resources
9.000% due 08/15/99 300 313
RJR Nabisco
8.625% due 12/01/02 100 105
Sequa Corp.
9.625% due 10/15/99 300 312
TCI Communications, Inc.
6.430% due 03/09/98 200 201
6.355% due 09/11/00(d) 1,000 997
Telecommunications, Inc.
9.875% due 04/01/98 100 102
USX Corp.
7.750% due 01/21/98 100 101
---------
2,131
---------
Utilities 3.7%
Consumers Energy Corp.
8.750% due 02/15/98 200 202
Gulf States Utilities
9.720% due 07/01/98 20 20
Long Island Lighting Co.
7.625% due 04/15/98 300 302
Philadelphia Electric
6.125% due 10/01/97 300 300
Western Massachusetts Electric
6.875% due 01/01/00 700 700
---------
1,524
---------
Total Corporate Bonds and Notes 13,368
(Cost $13,349) ---------
- -----------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS 0.5%
- -----------------------------------------------------------------------------
Treasury Inflation Protected Securities
3.625% due 07/15/02(g) 200 200
---------
Total U.S. Treasury Obligations 200
(Cost $199) ---------
- -----------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES 17.1%
- -----------------------------------------------------------------------------
Collateralized Mortgage Obligations 7.3%
Federal Home Loan Mortgage Corp.
6.600% due 12/15/03 300 302
7.000% due 05/15/23 128 126
6.500% due 08/15/23 187 185
6.500% due 03/15/24 138 120
Federal National Mortgage Assn.
5.750% due 02/25/15 200 199
4.000% due 01/25/22 126 99
5.000% due 04/25/22 48 41
7.000% due 06/25/23 227 218
6.500% due 12/25/23 127 114
Residential Funding
6.750% due 01/25/06 988 988
7.500% due 06/25/27 184 187
Resolution Trust Corp.
7.500% due 08/25/23 169 170
Ryland Acceptance Corp.
8.350% due 12/01/12 187 187
Structured Mortgage Asset Residential Trust
7.875% due 09/25/21 78 78
---------
3,014
---------
Federal National Mortgage Association 1.2%
6.110% due 03/01/29(d) 491 489
---------
Government National Mortgage Association 6.4%
5.500% due 05/20/27(d) 493 490
6.500% due 06/20/27(d) 1,875 1,909
7.000% due 01/20/27(d) 93 96
7.125% due 07/20/23(d) 181 186
---------
2,681
---------
Other Mortgage-Backed Securities 0.4%
Guardian
7.401% due 01/25/21(d) 244 168
---------
Stripped Mortgage-Backed Securities 1.8%
Collateralized Mortgage Obligation Trust (PO)
0.000% due 04/23/17 30 25
Federal Home Loan Mortgage Corp. (IO)
7.000% due 05/15/04 761 64
7.000% due 02/15/17 1,588 116
Federal National Mortgage Assn. (IO)
6.500% due 05/25/05 1,419 231
6.500% due 09/25/08 1,019 119
Federal National Mortgage Assn. (PO)
0.000% due 11/25/22 200 205
---------
760
---------
Total Mortgage-Backed Securities 7,112
(Cost $6,999) ---------
- -----------------------------------------------------------------------------
ASSET-BACKED SECURITIES 10.5%
- -----------------------------------------------------------------------------
Conti Mortgage Home Equity Loan Trust
6.760% due 02/15/11 192 192
First Deposit Master Trust
5.750% due 06/15/01 200 201
Ford Credit Grantor Trust
5.900% due 05/15/00 277 278
Ford Motor Credit Corp.
6.500% due 11/15/99 1,100 1,105
Green Tree Financial Group
6.420% due 04/15/28 300 302
6.220% due 02/15/29 350 352
Premiere Auto Trust
8.050% due 04/04/00 1,900 1,927
---------
Total Asset-Backed Securities 4,357
(Cost $4,348) ---------
- -----------------------------------------------------------------------------
SOVEREIGN ISSUES 0.9%
- -----------------------------------------------------------------------------
Republic of Argentina
6.750% due 03/31/05(d) 384 366
---------
Total Sovereign Issues 366
(Cost $323) ---------
</TABLE>
94 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
FOREIGN CURRENCY-DENOMINATED ISSUES (c)(f) 0.2%
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Foreign Currency-Denominated Issues 0.2%
Commonwealth of Canada
4.250% due 12/01/26 (g) C $ 103 $ 77
---------
Total Foreign Currency-Denominated Issues 77
(Cost $69) =========
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 38.0%
- --------------------------------------------------------------------------------
Certificates of Deposit 3.3%
Banco Latino
6.400% due 03/27/98 $ 300 300
6.160% due 09/25/98 1,100 1,097
---------
1,397
=========
Discount Notes 29.4%
Canadian Wheat Board
5.500% due 10/20/97 2,600 2,593
5.490% due 11/18/97 1,300 1,290
Ford Motor Credit Corp.
5.510% due 11/03/97 200 199
General Motors Acceptance Corp.
5.540% due 11/03/97 400 398
5.580% due 11/05/97 100 100
KFW International Finance, Inc.
5.490% due 11/13/97 1,100 1,093
National Rural Utilities Cooperative
5.480% due 10/28/97 4,000 3,984
New Center Asset Trust
5.540% due 12/17/97 200 198
Province of British Columbia
5.500% due 12/12/97 2,000 1,978
United Parcel Service Co.
5.500% due 12/03/97 400 396
---------
12,229
=========
Repurchase Agreements 2.9%
State Street Bank
5.000% due 10/01/97 1,191 1,191
(Dated 09/30/97. Collateralized by U.S. Treasury ---------
Note 6.250% 08/31/02 valued at $1,216,500.
Repurchase proceeds are $1,191,165.)
U.S. Treasury Bills 2.4% (b)(f)
5.145% due 10/02/97-12/11/97 990 984
---------
Total Short-Term Instruments 15,801
(Cost $15,801) ---------
Total Investments (a) 99.3% $ 41,281
(Cost $41,088)
Other Assets and Liabilities (Net) 0.7% 285
---------
Net Assets 100.0% $ 41,566
=========
Notes to Schedule of Investments ($ in thousands):
(a) At September 30, 1997, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 235
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (42)
---------
Unrealized appreciation-net $ 193
---------
</TABLE>
(b) Securities with an aggregate market value of $984 have been segregated with
the custodian to cover margin requirements for the following open future
contracts at September 30, 1997:
<TABLE>
<CAPTION>
Unrealized
Appreciation/
Type Contracts (Depreciation)
- -------------------------------------------------------------------------------------
<S> <C> <C>
S&P 500 Index (12/97) 44 $ 708
U.S. Treasury 5 Year Note (12/97) 61 40
U.S. Treasury 10 Year Note (12/97) 63 (6)
------------
$ 742
============
</TABLE>
(c) Foreign forward currency contracts outstanding at September 30, 1997:
<TABLE>
<CAPTION>
Principal
Amount Unrealized
Covered Expiration Appreciation/
Type by Contract Month (Depreciation)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sell C$ 94 12/97 $ 0
Sell SK 156 11/97 (1)
------------
$ (1)
============
</TABLE>
(d) Variable Rate Security. The rate listed is as of September 30, 1997.
(e) Principal amount denoted in indicated currency:
C$ - Canadian Dollar
SK - Swedish Krona
(f) Securities are grouped by coupon and represent a range of maturities.
(g) Principal amount of the security is adjusted for inflation.
(h) Swap agreements outstanding at September 30, 1997:
<TABLE>
<CAPTION>
Notional Unrealized
Type Amount Appreciation
- --------------------------------------------------------------------------------
<S> <C> <C>
Receive total return on S&P 500 Index and
pay floating rate based on 1 month LIBOR.
Broker: Lehman Brothers
Exp. 12/31/97 $ 4,242 $ 0
</TABLE>
1997 Semiannual Report See accompanying notes 95
<PAGE>
Notes to Financial Statements
September 30, 1997 (Unaudited)
1. Organization
PIMCO Funds (the "Trust") was established as a Massachusetts business trust on
February 19, 1987. The Trust is registered under the Investment Company Act of
1940 (the "Act"), as amended, as an open-end management investment company. The
Trust currently consists of 24 separate investment funds (the "Funds"): the
Total Return Fund; the Total Return Fund II; the Total Return Fund III; the
Total Return Mortgage Fund; the Moderate Duration Fund; the Low Duration Fund;
the Low Duration Fund II; the Low Duration Fund III; the Low Duration Mortgage
Fund; the Short-Term Fund; the Long-Term U.S. Government Fund; the Real Return
Bond Fund; the Foreign Bond Fund; the Global Bond Fund; the Global Bond Fund II;
the Emerging Markets Bond Fund; the Emerging Markets Bond Fund II; the High
Yield Fund; the Money Market Fund; the StocksPLUS Fund; the StocksPLUS Short
Strategy Fund; the Strategic Balanced Fund; the Commercial Mortgage Securities
Fund; and the International Bond Fund (available only to private account clients
of PIMCO). The annual reports for the Global Bond II and International Bond
Funds are provided separately. The Commercial Mortgage Securities, Emerging
Markets Bond II and StocksPLUS Short Strategy Funds had not commenced operations
as of September 30, 1997. As used in financial statements, "Institutional
Classes" refers to the Institutional and Administrative Classes and "Retail
Classes" refers to the A, B and C Classes of the Trust.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently
followed by the Trust in preparation of its financial statements. These policies
are in conformity with generally accepted accounting principles. 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.
Security Valuation. Portfolio securities and other financial instruments for
which market quotations are readily available are stated at market value. Market
value is determined on the basis of last reported sales prices, or if no sales
are reported, as is the case for most securities traded over-the-counter, the
mean between representative bid and ask quotations obtained from a quotation
reporting system or from established market makers. Fixed income securities,
including those to be purchased under firm commitment agreements, are normally
valued on the basis of quotes obtained from brokers and dealers or pricing
services. Foreign currency amounts are converted to U.S. dollars using foreign
exchange quotations received from independent dealers. Short-term investments
which mature in 60 days or less are valued at amortized cost, which approximates
market value. Certain fixed income securities for which daily market quotations
are not readily available may be valued, pursuant to guidelines established by
the Board of Trustees, with reference to fixed income securities whose prices
are more readily obtainable.
Financing Transactions. A Fund may enter into financing transactions consisting
of the sale by the Fund of securities, together with a commitment to repurchase
similar securities at a future date. The difference between the selling price
and the future purchase price is an adjustment to interest income to the Fund.
If the party to whom the Fund sells the security becomes insolvent, a Fund's
right to repurchase the security may be restricted; the value of the security
may change over the term of the financing transaction; and the return earned by
a Fund with the proceeds of a financing transaction may not exceed transaction
costs. Included in payable for investments and foreign currency purchased are
amounts of $14,858,917, $2,634,029, $1,357,092, $6,881,438, $282,986,697,
$116,330,102 and $41,854 for the Total Return, Total Return III, Low Duration,
Long-Term U.S. Government, Foreign Bond, Global Bond and StocksPLUS Funds,
respectively, related to these financing transactions.
96 PIMCO Funds
<PAGE>
Securities Transactions and Investment Income. Securities transactions are
recorded as of the trade date. Securities purchased or sold on a when-issued or
delayed-delivery basis may be settled a month or more after the trade date.
Realized gains and losses from securities sold are recorded on the identified
cost basis. Dividend income is recorded on the ex-dividend date, except certain
dividends from foreign securities where the ex-dividend date may have passed,
are recorded as soon as the Fund is informed of the ex-dividend date. Interest
income, adjusted for the accretion of discounts and amortization of premiums, is
recorded on the accrual basis.
Stripped mortgage-backed securities (SMBS) represent a participation in, or
are secured by and payable from, mortgage loans on real property, and may be
structured in classes with rights to receive varying proportions of principal
and interest. SMBS include interest-only securities (IOs), which receive all of
the interest, and principal-only securities (POs), which receive all of the
principal. If the underlying mortgage assets experience greater than anticipated
payments of principal, a Fund may fail to recoup some or all of its initial
investment in these securities. The market value of these securities may be
extremely sensitive to changes in interest rates.
Dividends and Distributions to Shareholders. Dividends from net investment
income, if any, of each Fund, except the StocksPLUS and Strategic Balanced
Funds, are declared on each day the Trust is open for business and are
distributed to shareholders monthly. Dividends from net investment income, if
any, of the StocksPLUS and Strategic Balanced Funds are declared and distributed
to shareholders quarterly. Net long-term capital gains earned by a Fund, if any,
will be distributed no less frequently than once each year. Foreign exchange
gains or losses on investments and the income generated from such investments,
arising from fluctuations of exchange rates of the non-dollar denominated
investments relative to the U.S. dollar, are reported to shareholders as income
in accordance with the provisions of the Internal Revenue Code.
Income dividends 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 such items as wash sales, foreign currency transactions, net
operating losses and capital loss carryforwards.
Distributions reflected as a tax basis return of capital in the
accompanying Statement of Changes in Net Assets have been reclassified to paid
in capital. In addition, other amounts have been reclassified between
undistributed net investment income, accumulated undistributed net realized
gains or losses and paid in capital to more appropriately conform financial
accounting to tax characterizations of dividend distributions.
Multiclass Operations. Each class offered by the Trust has equal rights as to
assets and voting privileges. Income and non-class specific expenses of each
Fund, except the StocksPLUS and Strategic Balanced Funds, are allocated daily to
each class of shares based on the relative value of settled shares. Income and
non-class specific expenses of the StocksPLUS and Strategic Balanced Funds are
allocated daily to each class of shares based on the relative net assets of each
class. Realized and unrealized capital gains and losses of each Fund are
allocated daily to each class of shares based on the relative net assets of each
class.
Federal Income Taxes. Each Fund intends to qualify as a regulated investment
company and distribute all of its taxable income and net realized gains, if
applicable, to shareholders. Accordingly, no provision for Federal income taxes
has been made.
1997 Semiannual Report 97
<PAGE>
Notes to Financial Statements (Cont.)
September 30, 1997 (Unaudited)
Futures and Options. Certain Funds are authorized to enter into futures
contracts and options. A Fund may use futures contracts to manage its exposure
to the stock and bond markets or change in interest rates and currency values,
or for gaining exposure to markets. The primary risks associated with the use of
futures contracts and options are imperfect correlation between the change in
market value of the securities held by a Fund and the prices of futures
contracts and options, the possibility of an illiquid market, and the inability
of the counter-party to meet the terms of the contract. Futures contracts and
purchased options are valued based upon their quoted daily settlement prices.
The premium received for a written option is recorded as an asset with an equal
liability which is marked to market based on the option's quoted daily
settlement price. Fluctuations in the value of such instruments are recorded as
unrealized appreciation (depreciation) until terminated, at which time realized
gains and losses are recognized.
Forward Currency Transactions. Certain Funds are authorized to enter into
forward foreign exchange contracts for the purpose of hedging against foreign
exchange risk arising from the Fund's investment or anticipated investment in
securities denominated in foreign currencies. A Fund also may enter into these
contracts for purposes of increasing exposure to a foreign currency or to shift
exposure to foreign currency fluctuations from one country to another. All
commitments are marked to market daily at the applicable translation rates and
any resulting unrealized gains or losses are recorded. Realized gains or losses
are recorded at the time the forward contract matures or by delivery of the
currency. Risks may arise upon entering these contracts from the potential
inability of a counterparty to meet the terms of the contract and from
unanticipated movements in the value of a foreign currency relative to the U.S.
dollar.
For assets and liabilities other than investments in securities, net
realized an unrealized gains and losses from foreign currency transactions arise
from changes in currency exchange rates.
Swaps. Certain Funds are authorized to enter into interest rate, index and
currency exchange swap agreements. PIMCO uses these agreements in order to
obtain a desired return at a lower cost to the Fund than if the Fund had
invested directly in an instrument that yielded the desired return. The
agreements involve elements of credit risk identified as the cost of replacing
those agreements for which PIMCO is in a net receivable position in the event of
counterparty default.
At September 30, 1997, the StocksPLUS and Strategic Balanced Funds were
parties to S & P 500 Index swap agreements. The agreements involve the
contractual exchange of payments whereby the Funds receive proceeds based on the
total return of the S & P 500 Index and pay an amount based on LIBOR. The
differential to be paid or received is recognized daily over the life of the
agreement. For the period ended September 30, 1997, the Total Return, Low
Duration, StocksPLUS and Strategic Balanced Funds had net income of $2,638,875,
$1,390,565, $23,722,135 and $812,508, respectively, from swap transactions.
These amounts are included in interest income of the Funds.
Delayed-Delivery Transactions. A Fund may purchase or sell securities on a
when-issued or delayed-delivery basis. These transactions involve a commitment
by a Fund to purchase or sell securities for a predetermined price or yield,
with payment and delivery taking place beyond the customary settlement period.
When delayed-delivery purchases are outstanding, a Fund will set aside and
maintain until the settlement date in a segregated account, liquid assets in an
amount sufficient to meet the purchase price. When purchasing a security on a
delayed-delivery basis, a Fund assumes the rights and risks of ownership of the
security, including the risk of price and yield fluctuations, and takes such
fluctuations into account when determining its net asset value. A Fund may
dispose of or renegotiate a delayed-delivery transaction after it is entered
into, and may sell when-issued securities before they are delivered, which may
result in a capital gain or loss. When the Fund has sold a security on a
delayed-delivery basis, the Fund does not participate in future gains and losses
with respect to the security. Forward sales commitments are accounted for by the
Fund in the same manner as forward currency contracts discussed above.
98 PIMCO Funds
<PAGE>
The following securities were subject to outstanding forward sale
commitments at September 30, 1997 which are covered by purchased call options
(amounts in thousands):
<TABLE>
<CAPTION>
Principal
Amount Value Proceeds
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Foreign Bond Fund
Government of Japan JY 1,276,600 $ 12,178 $ 12,250
Kingdom of Sweden SK 80,000 11,832 11,666
-----------------------------
$ 24,010 $ 23,916
=============================
Global Bond Fund
Government of Japan JY 390,000 $ 3,763 $ 3,788
Kingdom of Spain SP 472,800 3,995 3,759
Kingdom of Sweden SK 200,500 29,016 27,896
-----------------------------
$ 36,774 $ 35,443
=============================
</TABLE>
Inflation-Indexed Bonds. Inflation-indexed bonds are fixed income securities
whose principal value is periodically adjusted to the rate of inflation. The
interest rate on these bonds is generally fixed at issuance at a rate lower than
typical bonds. Over the life of an inflation-indexed bond, however, interest
will be paid based on a principal value which is adjusted for inflation. Any
increase in the principal amount of an inflation-indexed bond will be considered
interest income, even though investors do not receive their principal until
maturity.
Repurchase Agreements. Each Fund may engage in repurchase transactions. Under
the terms of a typical repurchase agreement, the Fund takes possession of an
underlying debt obligation subject to an obligation of the seller to repurchase,
and the Fund to resell, the obligation at an agreed-upon price and time. The
market value of the collateral must be equal at all times to the total amount of
the repurchase obligations, including interest. Generally, in the event of
counterparty default, the Fund has the right to use the collateral to offset
losses incurred.
3. Fees, Expenses, and Related Party Transactions
Investment Advisory Fee. PIMCO serves as investment adviser (the "Adviser") to
the Trust, pursuant to an investment advisory contract. The Adviser receives a
monthly fee from each Fund at an annual rate based on average daily net assets
of the Fund. The Advisory Fee is charged at an annual rate of 0.15% for the
Money Market Fund, 0.40% for the StocksPLUS and Strategic Balanced Funds, 0.45%
for the Emerging Markets Bond Fund and 0.25% for all other Funds.
Administration Fee. PIMCO also serves as administrator (the "Administrator"),
and provides administrative services to the Trust for which it receives from
each Fund a monthly administrative fee based on each share class's average daily
net assets. The Administration Fee for the Institutional Classes is charged at
the annual rate of 0.18% for the Total Return and Low Duration Funds, 0.20% for
the Moderate Duration, Short-Term and Money Market Funds, 0.30% for the Global
Bond Fund, 0.40% for the Emerging Markets Bond Fund and 0.25% for all other
Funds. The Administration Fee for the Retail Classes is charged at an annual
rate of 0.35% for the Short-Term and Money Market Funds, 0.45% for the Foreign
Bond Fund, 0.50% for the Emerging Markets Bond Fund and 0.40% for all other
Funds.
Distribution and Servicing Fees. PIMCO Funds Distribution Company ("PFDCO"), a
wholly-owned subsidiary of PIMCO Advisors L.P., serves as the distributor of the
Trust's shares.
The Trust is permitted to reimburse, out of the Administrative Class assets
of each Fund offering Administrative Class shares in an amount up to 0.25% on an
annual basis of the average daily net assets of that class, financial
intermediaries that provide services in connection with the distribution of
shares or administration of plans or programs that use Fund shares as their
funding medium. The effective rate paid to PFDCO was 0.25% during 1997.
1997 Semiannual Report 99
<PAGE>
Notes to Financial Statements (Cont.)
September 30, 1997 (Unaudited)
Pursuant to the Distribution and Servicing Plans adopted by the Retail
Classes of the Trust, the Trust compensates PFDCO for services provided and
expenses incurred in connection with assistance rendered in the sale of shares
and services rendered to shareholders and for maintenance of shareholder
accounts of the Retail Classes. The Trust pays PFDCO distribution and servicing
fees at an effective rate as set forth below (calculated as a percentage of each
Fund's average daily net assets attributable to each class):
<TABLE>
<CAPTION>
Effective Rate Allowable Rate
--------------------------------------------------------------------------------------------
Distribution Fee (%) Servicing Fee (%) Distribution Fee (%) Servicing Fee (%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Money Market Fund -- 0.10 -- 0.20
All other Funds -- 0.25 -- 0.25
Class B
All Funds 0.75 0.25 0.75 0.25
Class C
Total Return, Long-Term U.S. Gov't,
Foreign Bond, Emerging Markets Bond
and High Yield Funds 0.75 0.25 0.75 0.25
Low Duration Fund 0.50 0.25 0.50 0.25
Real Return Bond and StocksPLUS Funds 0.50 0.25 0.75 0.25
Short-Term Fund 0.30 0.25 0.75 0.25
Money Market Fund -- 0.10 -- 0.20
</TABLE>
PFDCO also receives the proceeds of the initial sales charges paid by the
shareholders upon the purchase of Class A shares, except for the Money Market
Fund, and the contingent deferred sales charges paid by the shareholders upon
certain redemptions of Class A, Class B and Class C shares. For the period ended
September 30, 1997, the Funds were informed that PFDCO received $1,202,438
representing commissions (sales charges) and contingent deferred sales charges
related to the Retail Classes.
Expenses. The Trust is responsible for the following expenses: (i) salaries and
other compensation of any of the Trust's executive officers and employees who
are not officers, directors, stockholders or employees of PIMCO or its
subsidiaries or affiliates; (ii) taxes and governmental fees; (iii) brokerage
fees and commissions and other portfolio transaction expenses; (iv) the costs of
borrowing money, including interest expense; (v) fees and expenses of the
Trustees who are not "interested persons" of PIMCO or the Trust, and any counsel
retained exclusively for their benefit; (vi) extraordinary expenses, including
costs of litigation and indemnification expenses; (vii) expenses, such as
organizational expenses, which are capitalized in accordance with generally
accepted accounting principles; and (viii) any expenses allocated or allocable
to a specific class of shares, which include service fees payable with respect
to the Administrative Class shares and may include certain other expenses as
permitted by the Trust's Multiclass Plan adopted pursuant to Rule 18f-3 under
the Act and subject to review and approval by the Trustees. The ratio of
expenses to average net assets per share class, as disclosed in Financial
Highlights, may differ from the annual fund operating expenses per share class
as disclosed in the Prospectus for the reasons set forth above. Each
unaffiliated Trustee receives an annual retainer of $45,000, plus $3,000 for
each Board of Trustees meeting attended, plus reimbursement of related expenses.
In addition, each committee chair receives an annual retainer of $1,500. These
expenses are allocated to the Funds of the Trust according to their respective
net assets.
100 PIMCO Funds
<PAGE>
4. Purchases and Sales of Securities
Purchases and sales of securities (excluding short-term investments) for the
period ended September 30, 1997 were as follows (amount in thousands):
<TABLE>
<CAPTION>
U.S. Government/Agency All Other
------------------------------------------------------------------------------------------
Purchases Sales Purchases Sales
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total Return Fund $ 12,069,472 $ 10,598,666 $ 1,555,135 $ 985,942
Total Return Fund II 753,424 860,312 35,594 79,083
Total Return Fund III 206,853 165,201 31,699 730
Total Return Mortgage Fund 8,173 6,082 7,048 6,054
Moderate Duration Fund 28,677 21,791 46,458 5,613
Low Duration Fund 3,916,454 3,374,650 86,040 282,512
Low Duration Fund II 348,624 221,190 10,505 10
Low Duration Fund III 13,662 10,406 499 0
Low Duration Mortgage Fund 14,979 10,284 3,376 3,383
Short-Term Fund 16,494 13,729 71,142 27,580
Long-Term U.S. Gov't Fund 72,010 57,027 7,835 139
Real Return Bond Fund 24,428 17,011 11,594 11,588
Foreign Bond Fund 14,054 1,135 788,751 751,833
Global Bond Fund 35,622 11,004 837,612 871,647
Emerging Markets Bond Fund 0 0 6,217 2,825
High Yield Fund 0 0 589,016 200,334
StocksPLUS Fund 41,972 9,377 202,959 35,726
Strategic Balanced Fund 2,878 1,000 18,327 2,125
</TABLE>
5. Transactions in Written Call and Put Options
Transactions in written call and put options were as follows (amount in
thousands):
<TABLE>
<CAPTION>
Total Return Total Return II Total Return III Low Duration Low Duration II
-----------------------------------------------------------------------------------------------
-------------------------------------------- Premium ------------------------------------------
<S> <C> <C> <C> <C> <C>
Balance at 3/31/97 $ 30,218 $ 1,531 $ 1,073 $ 3,711 $ 287
Sales 8,810 0 0 0 0
Closing Buys 0 0 0 0 0
Expirations (29,786) (1,531) (1,073) (3,711) (287)
Exercised (3,228) 0 0 0 0
-----------------------------------------------------------------------------------------------
Balance at 9/30/97 $ 6,014 $ 0 $ 0 $ 0 $ 0
===============================================================================================
</TABLE>
<TABLE>
<CAPTION>
Emerging
Long-Term U.S. Gov't Foreign Bond Global Bond Markets Bond
----------------------------------------------------------------------------------
------------------------------------- Premium ------------------------------------
<S> <C> <C> <C> <C>
Balance at 3/31/97 $ 34 $ 0 $ 0 $ 0
Sales 0 12 12 4
Closing Buys (34) 0 0 0
Expirations 0 0 0 0
Exercised 0 0 0 0
----------------------------------------------------------------------------------
Balance at 9/30/97 $ 0 $ 12 $ 12 $ 4
==================================================================================
</TABLE>
1997 Semiannual Report 101
<PAGE>
Notes to Financial Statements(Cont.)
September 30, 1997(Unaudited)
6. Shares of Beneficial Interest
The Trust may issue an unlimited number of shares of beneficial interest with a
$.0001 par value. Changes in shares of beneficial interest were as follows
(shares in thousands):
<TABLE>
<CAPTION>
Total Return Fund
---------------------------------------------------
Period Ended 9/30/97 Year Ended 3/31/97
Shares Amount Shares Amount
---------------------------------------------------
<S> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 233,249 $2,458,153 358,561 $3,709,839
- ------------------------------------ --------------------------------------------------
Administrative Class 8,849 93,312 12,842 132,504
- ------------------------------------ --------------------------------------------------
Class A 12,957 136,897 3,360 35,013
- ------------------------------------ --------------------------------------------------
Class B 3,225 34,079 1,002 10,459
- ------------------------------------ --------------------------------------------------
Class C 4,584 48,412 1,329 13,775
- ------------------------------------ --------------------------------------------------
Shares issued in reorganization
Class A 0 0 8,630 90,184
- ------------------------------------ --------------------------------------------------
Class B 0 0 6,410 66,992
- ------------------------------------ --------------------------------------------------
Class C 0 0 32,743 342,162
- ------------------------------------ --------------------------------------------------
Issued as reinvestment
of distributions
Institutional Class 32,022 338,693 58,681 606,425
- ------------------------------------ --------------------------------------------------
Administrative Class 508 5,373 820 8,479
- ------------------------------------ --------------------------------------------------
Class A 413 4,376 88 900
- ------------------------------------ --------------------------------------------------
Class B 144 1,529 49 513
- ------------------------------------ --------------------------------------------------
Class C 536 5,668 223 2,316
- ------------------------------------ --------------------------------------------------
Cost of shares redeemed
Institutional Class (168,064) (1,780,010) (193,748) (2,001,935)
- ------------------------------------ --------------------------------------------------
Administrative Class (2,814) (29,650) (9,113) (94,080)
- ------------------------------------ --------------------------------------------------
Class A (2,164) (22,843) (810) (8,458)
- ------------------------------------ --------------------------------------------------
Class B (599) (6,310) (244) (2,564)
- ------------------------------------ --------------------------------------------------
Class C (5,188) (54,631) (2,256) (23,590)
- ------------------------------------ --------------------------------------------------
Net increase(decrease) resulting from
Fund share transactions 117,658 $1,233,048 278,567 $2,888,934
- ------------------------------------ --------------------------------------------------
<CAPTION>
Total Return Fund II
-------------------------------------------------
Period Ended 9/30/97 Year Ended 3/31/97
Shares Amount Shares Amount
- ------------------------------------ --------------------------------------------------
<S> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 11,643 $ 117,957 8,952 $ 88,832
- ------------------------------------ --------------------------------------------------
Administrative Class 416 4,203 184 1,824
- ------------------------------------ --------------------------------------------------
Class A 0 0 0 0
- ------------------------------------ --------------------------------------------------
Class B 0 0 0 0
- ------------------------------------ --------------------------------------------------
Class C 0 0 0 0
- ------------------------------------ --------------------------------------------------
Shares issued in reorganization
Class A 0 0 0 0
- ------------------------------------ --------------------------------------------------
Class B 0 0 0 0
- ------------------------------------ --------------------------------------------------
Class C 0 0 0 0
- ------------------------------------ --------------------------------------------------
Issued as reinvestment
of distributions
Institutional Class 1,207 12,193 2,871 28,378
- ------------------------------------ --------------------------------------------------
Administrative Class 20 201 28 273
- ------------------------------------ --------------------------------------------------
Class A 0 0 0 0
- ------------------------------------ --------------------------------------------------
Class B 0 0 0 0
- ------------------------------------ --------------------------------------------------
Class C 0 0 0 0
- ------------------------------------ --------------------------------------------------
Cost of shares redeemed
Institutional Class (23,478) (237,696) (9,278) (90,902)
- ------------------------------------ --------------------------------------------------
Administrative Class (93) (946) (9) (93)
- ------------------------------------ --------------------------------------------------
Class A 0 0 0 0
- ------------------------------------ --------------------------------------------------
Class B 0 0 0 0
- ------------------------------------ --------------------------------------------------
Class C 0 0 0 0
- ------------------------------------ --------------------------------------------------
Net increase(decrease) resulting from
Fund share transactions (10,285) $ (104,088) 2,748 $ 28,312
- ------------------------------------ --------------------------------------------------
<CAPTION>
Total Return Fund III
-------------------------------------------------
Period Ended 9/30/97 Year Ended 3/31/97
Shares Amount Shares Amount
- ------------------------------------ --------------------------------------------------
<S> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 9,775 $ 92,231 6,069 $ 56,444
- ------------------------------------ --------------------------------------------------
Administrative Class 14 125 0 0
- ------------------------------------ --------------------------------------------------
Class A 0 0 0 0
- ------------------------------------ --------------------------------------------------
Class B 0 0 0 0
- ------------------------------------ --------------------------------------------------
Class C 0 0 0 0
- ------------------------------------ --------------------------------------------------
Shares issued in reorganization
Class A 0 0 0 0
- ------------------------------------ --------------------------------------------------
Class B 0 0 0 0
- ------------------------------------ --------------------------------------------------
Class C 0 0 0 0
- ------------------------------------ --------------------------------------------------
Issued as reinvestment
of distributions
Institutional Class 713 6,725 1,127 10,374
- ------------------------------------ --------------------------------------------------
Administrative Class 0 0 0 0
- ------------------------------------ --------------------------------------------------
Class A 0 0 0 0
- ------------------------------------ --------------------------------------------------
Class B 0 0 0 0
- ------------------------------------ --------------------------------------------------
Class C 0 0 0 0
- ------------------------------------ --------------------------------------------------
Cost of shares redeemed
Institutional Class (917) (8,479) (1,649) (15,338)
- ------------------------------------ --------------------------------------------------
Administrative Class 0 (3) 0 0
- ------------------------------------ --------------------------------------------------
Class A 0 0 0 0
- ------------------------------------ --------------------------------------------------
Class B 0 0 0 0
- ------------------------------------ --------------------------------------------------
Class C 0 0 0 0
- ------------------------------------ --------------------------------------------------
Net increase(decrease) resulting from
Fund share transactions 9,585 $ 90,599 5,547 $ 51,480
- ------------------------------------ --------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Low Duration
Low Duration Fund III Mortgage Fund
----------------------------------------------------- ------------------------
Period Ended 9/30/97 Period Ended 3/31/97 Period Ended 9/30/97
Shares Amount Shares Amount Shares Amount
----------------------------------------------------- ------------------------
<S> <C> <C> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 175 $ 1,750 1,000 $ 10,000 330 $ 3,300
- ----------------------------------- ----------------------------------------------------- ------------------------
Administrative Class 0 0 0 0 0 0
- ----------------------------------- ----------------------------------------------------- ------------------------
Class A 0 0 0 0 0 0
- ----------------------------------- ----------------------------------------------------- ------------------------
Class B 0 0 0 0 0 0
- ----------------------------------- ----------------------------------------------------- ------------------------
Class C 0 0 0 0 0 0
- ----------------------------------- ----------------------------------------------------- ------------------------
Shares issued in reorganization
Class A 0 0 0 0 0 0
- ----------------------------------- ----------------------------------------------------- ------------------------
Class B 0 0 0 0 0 0
- ----------------------------------- ----------------------------------------------------- ------------------------
Class C 0 0 0 0 0 0
- ----------------------------------- ----------------------------------------------------- ------------------------
Issued as reinvestment of distributions
Institutional Class 35 347 15 149 3 31
- ----------------------------------- ----------------------------------------------------- ------------------------
Administrative Class 0 0 0 0 0 0
- ----------------------------------- ----------------------------------------------------- ------------------------
Class A 0 0 0 0 0 0
- ----------------------------------- ----------------------------------------------------- ------------------------
Class B 0 0 0 0 0 0
- ----------------------------------- ----------------------------------------------------- ------------------------
Class C 0 0 0 0 0 0
- ----------------------------------- ----------------------------------------------------- ------------------------
Cost of shares redeemed
Institutional Class 0 0 0 0 0 0
- ----------------------------------- ----------------------------------------------------- ------------------------
Administrative Class 0 0 0 0 0 0
- ----------------------------------- ----------------------------------------------------- ------------------------
Class A 0 0 0 0 0 0
- ----------------------------------- ----------------------------------------------------- ------------------------
Class B 0 0 0 0 0 0
- ----------------------------------- ----------------------------------------------------- ------------------------
Class C 0 0 0 0 0 0
- ----------------------------------- ----------------------------------------------------- ------------------------
Net increase(decrease) resulting from
Fund share transactions 210 $ 2,097 1,015 $ 10,149 333 $ 3,331
- ----------------------------------- ----------------------------------------------------- ------------------------
</TABLE>
<TABLE>
<CAPTION>
Short-Term Fund
--------------------------------------------------
Period Ended 9/30/97 Year Ended 3/31/97
Shares Amount Shares Amount
--------------------------------------------------
<S> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 15,309 $ 153,726 18,060 $ 180,257
- ----------------------------------- --------------------------------------------------
Administrative Class 412 4,147 867 8,640
- ----------------------------------- --------------------------------------------------
Class A 1,028 10,316 441 4,435
- ----------------------------------- --------------------------------------------------
Class B 67 674 19 197
- ----------------------------------- --------------------------------------------------
Class C 398 3,995 140 1,403
- ----------------------------------- --------------------------------------------------
Shares issued in reorganization
Class A 0 0 0 0
- ----------------------------------- --------------------------------------------------
Class B 0 0 0 0
- ----------------------------------- --------------------------------------------------
Class C 0 0 0 0
- ----------------------------------- --------------------------------------------------
Issued as reinvestment of distributions
Institutional Class 440 4,419 625 6,243
- ----------------------------------- --------------------------------------------------
Administrative Class 1 14 1 15
- ----------------------------------- --------------------------------------------------
Class A 15 156 1 5
- ----------------------------------- --------------------------------------------------
Class B 1 6 0 1
- ----------------------------------- --------------------------------------------------
Class C 6 57 0 4
- ----------------------------------- --------------------------------------------------
Cost of shares redeemed
Institutional Class (14,271) (143,369) (13,294) (132,676)
- ----------------------------------- --------------------------------------------------
Administrative Class (401) (4,021) (820) (8,162)
- ----------------------------------- --------------------------------------------------
Class A (547) (5,496) (189) (1,898)
- ----------------------------------- --------------------------------------------------
Class B (19) (188) (8) (83)
- ----------------------------------- --------------------------------------------------
Class C (170) (1,709) (4) (44)
- ----------------------------------- --------------------------------------------------
Net increase(decrease) resulting from
Fund share transactions 2,269 $ 22,727 5,839 $ 58,337
- ----------------------------------- --------------------------------------------------
</TABLE>
102 PIMCO Funds
<PAGE>
<TABLE>
<CAPTION>
Total Return
Mortgage Fund Moderate Duration Fund
----------------------- -------------------------------------------------
Period Ended 9/30/97 Period Ended 9/30/97 Period Ended 3/31/97
Shares Amount Shares Amount Shares Amount
----------------------- -------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 331 $ 3,315 6,023 $ 59,993 1,374 $ 13,681
- --------------------------------- ----------------------- -------------------------------------------------
Administrative Class 0 0 0 0 0 0
- --------------------------------- ----------------------- -------------------------------------------------
Class A 0 0 0 0 0 0
- --------------------------------- ----------------------- -------------------------------------------------
Class B 0 0 0 0 0 0
- --------------------------------- ----------------------- -------------------------------------------------
Class C 0 0 0 0 0 0
- --------------------------------- ----------------------- -------------------------------------------------
Shares issued in reorganization
Class A 0 0 0 0 0 0
- --------------------------------- ----------------------- -------------------------------------------------
Class B 0 0 0 0 0 0
- --------------------------------- ----------------------- -------------------------------------------------
Class C 0 0 0 0 0 0
- --------------------------------- ----------------------- -------------------------------------------------
Issued as reinvestment
of distributions
Institutional Class 4 36 150 1,499 16 159
- --------------------------------- ----------------------- -------------------------------------------------
Administrative Class 0 0 0 0 0 0
- --------------------------------- ----------------------- -------------------------------------------------
Class A 0 0 0 0 0 0
- --------------------------------- ----------------------- -------------------------------------------------
Class B 0 0 0 0 0 0
- --------------------------------- ----------------------- -------------------------------------------------
Class C 0 0 0 0 0 0
- --------------------------------- ----------------------- -------------------------------------------------
Cost of shares redeemed
Institutional Class 0 0 (326) (3,268) (21) (207)
- --------------------------------- ----------------------- -------------------------------------------------
Administrative Class 0 0 0 0 0 0
- --------------------------------- ----------------------- -------------------------------------------------
Class A 0 0 0 0 0 0
- --------------------------------- ----------------------- -------------------------------------------------
Class B 0 0 0 0 0 0
- --------------------------------- ----------------------- -------------------------------------------------
Class C 0 0 0 0 0 0
- --------------------------------- ----------------------- -------------------------------------------------
Net increase (decrease) resulting
from Fund share transactions 335 $ 3,351 5,847 $ 58,224 1,369 $ 13,633
- --------------------------------- ----------------------- -------------------------------------------------
<CAPTION>
Low Duration Fund
--------------------------------------------------
Period Ended 9/30/97 Year Ended 3/31/97
Shares Amount Shares Amount
--------------------------------------------------
<S> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 73,550 $ 744,927 139,451 $1,394,715
- ------------------------------------- --------------------------------------------------
Administrative Class 1,050 10,591 2,251 22,564
- ------------------------------------- --------------------------------------------------
Class A 10,550 106,951 2,135 21,468
- ------------------------------------- --------------------------------------------------
Class B 485 4,916 178 1,783
- ------------------------------------- --------------------------------------------------
Class C 3,158 31,965 1,581 15,897
- ------------------------------------- --------------------------------------------------
Shares issued in reorganization
Class A 0 0 5,364 53,912
- ------------------------------------- --------------------------------------------------
Class B 0 0 454 4,564
- ------------------------------------- --------------------------------------------------
Class C 0 0 6,149 61,795
- ------------------------------------- --------------------------------------------------
Issued as reinvestment
of distributions
Institutional Class 7,054 71,486 15,036 149,996
- ------------------------------------- --------------------------------------------------
Administrative Class 77 781 52 518
- ------------------------------------- --------------------------------------------------
Class A 170 1,717 61 615
- ------------------------------------- --------------------------------------------------
Class B 11 114 3 33
- ------------------------------------- --------------------------------------------------
Class C 117 1,186 49 495
- ------------------------------------- --------------------------------------------------
Cost of shares redeemed
Institutional Class (86,483) (874,976) (143,424) (1,432,178)
- ------------------------------------- --------------------------------------------------
Administrative Class (912) (9,218) (197) (1,971)
- ------------------------------------- --------------------------------------------------
Class A (9,587) (97,161) (1,615) (16,266)
- ------------------------------------- --------------------------------------------------
Class B (195) (1,977) (104) (1,047)
- ------------------------------------- --------------------------------------------------
Class C (3,799) (38,387) (1,407) (14,179)
- ------------------------------------- --------------------------------------------------
Net increase (decrease) resulting
from Fund share transactions (4,754) $ (47,085) 26,017 $ 262,714
- ------------------------------------- --------------------------------------------------
<CAPTION>
Low Duration Fund II
-------------------------------------------------
Period Ended 9/30/97 Year Ended 3/31/97
Shares Amount Shares Amount
-------------------------------------------------
<S> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 8,445 $ 83,817 14,219 $ 139,963
- ------------------------------------- -------------------------------------------------
Administrative Class 0 0 0 0
- ------------------------------------- -------------------------------------------------
Class A 0 0 0 0
- ------------------------------------- -------------------------------------------------
Class B 0 0 0 0
- ------------------------------------- -------------------------------------------------
Class C 0 0 0 0
- ------------------------------------- -------------------------------------------------
Shares issued in reorganization
Class A 0 0 0 0
- ------------------------------------- -------------------------------------------------
Class B 0 0 0 0
- ------------------------------------- -------------------------------------------------
Class C 0 0 0 0
- ------------------------------------- -------------------------------------------------
Issued as reinvestment
of distributions
Institutional Class 964 9,569 1,612 15,824
- ------------------------------------- -------------------------------------------------
Administrative Class 0 0 0 0
- ------------------------------------- -------------------------------------------------
Class A 0 0 0 0
- ------------------------------------- -------------------------------------------------
Class B 0 0 0 0
- ------------------------------------- -------------------------------------------------
Class C 0 0 0 0
- ------------------------------------- -------------------------------------------------
Cost of shares redeemed
Institutional Class (11,245) (111,764) (7,059) (69,105)
- ------------------------------------- -------------------------------------------------
Administrative Class 0 0 0 0
- ------------------------------------- -------------------------------------------------
Class A 0 0 0 0
- ------------------------------------- -------------------------------------------------
Class B 0 0 0 0
- ------------------------------------- -------------------------------------------------
Class C 0 0 0 0
- ------------------------------------- -------------------------------------------------
Net increase (decrease) resulting
from Fund share transactions (1,836) $ (18,378) 8,772 $ 86,682
- ------------------------------------- -------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Long-Term U.S. Gov't Fund
-------------------------------------------------
Period Ended 9/30/97 Year Ended 3/31/97
Shares Amount Shares Amount
-------------------------------------------------
<S> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 3,103 $ 30,755 712 $ 6,985
- --------------------------------------- -------------------------------------------------
Administrative Class 328 3,326 0 0
- --------------------------------------- -------------------------------------------------
Class A 166 1,635 128 1,237
- --------------------------------------- -------------------------------------------------
Class B 154 1,508 48 469
- --------------------------------------- -------------------------------------------------
Class C 131 1,288 29 281
- --------------------------------------- -------------------------------------------------
Shares issued in reorganization
Class A 0 0 0 0
- --------------------------------------- -------------------------------------------------
Class B 0 0 0 0
- --------------------------------------- -------------------------------------------------
Class C 0 0 0 0
- --------------------------------------- -------------------------------------------------
Issued as reinvestment
of distributions
Institutional Class 69 683 215 2,113
- --------------------------------------- -------------------------------------------------
Administrative Class 0 0 0 0
- --------------------------------------- -------------------------------------------------
Class A 2 23 0 1
- --------------------------------------- -------------------------------------------------
Class B 2 20 0 1
- --------------------------------------- -------------------------------------------------
Class C 1 14 0 1
- --------------------------------------- -------------------------------------------------
Cost of shares redeemed
Institutional Class (1,866) (18,752) (2,062) (20,121)
- --------------------------------------- -------------------------------------------------
Administrative Class 0 0 0 0
- --------------------------------------- -------------------------------------------------
Class A (28) (285) 0 0
- --------------------------------------- -------------------------------------------------
Class B (7) (72) 0 0
- --------------------------------------- -------------------------------------------------
Class C (14) (137) 0 (1)
- --------------------------------------- -------------------------------------------------
Net increase(decrease) resulting from
Fund share transactions 2,041 $ 20,006 (930) $ (9,034)
- --------------------------------------- -------------------------------------------------
<CAPTION>
Real Return Bond Fund
-------------------------------------------------
Period Ended 9/30/97 Period Ended 3/31/97
Shares Amount Shares Amount
-------------------------------------------------
<S> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 29 $ 278 564 $ 5,636
- --------------------------------------- -------------------------------------------------
Administrative Class 0 0 0 0
- --------------------------------------- -------------------------------------------------
Class A 66 653 0 0
- --------------------------------------- -------------------------------------------------
Class B 61 609 51 514
- --------------------------------------- -------------------------------------------------
Class C 66 659 15 149
- --------------------------------------- -------------------------------------------------
Shares issued in reorganization
Class A 0 0 0 0
- --------------------------------------- -------------------------------------------------
Class B 0 0 0 0
- --------------------------------------- -------------------------------------------------
Class C 0 0 0 0
- --------------------------------------- -------------------------------------------------
Issued as reinvestment
of distributions
Institutional Class 14 142 4 45
- --------------------------------------- -------------------------------------------------
Administrative Class 0 0 0 0
- --------------------------------------- -------------------------------------------------
Class A 1 9 0 0
- --------------------------------------- -------------------------------------------------
Class B 1 11 0 1
- --------------------------------------- -------------------------------------------------
Class C 1 9 0 0
- --------------------------------------- -------------------------------------------------
Cost of shares redeemed
Institutional Class 0 0 0 0
- --------------------------------------- -------------------------------------------------
Administrative Class 0 0 0 0
- --------------------------------------- -------------------------------------------------
Class A (1) (10) 0 0
- --------------------------------------- -------------------------------------------------
Class B (21) (205) 0 0
- --------------------------------------- -------------------------------------------------
Class C (31) (310) 0 0
- --------------------------------------- -------------------------------------------------
Net increase(decrease) resulting from
Fund share transactions 186 $ 1,845 634 $ 6,345
- --------------------------------------- -------------------------------------------------
<CAPTION>
Foreign Bond Fund
------------------------------------------------
Period Ended 9/30/97 Year Ended 3/31/97
Shares Amount Shares Amount
------------------------------------------------
<S> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 8,893 $ 94,893 14,462 $ 155,503
- --------------------------------------- ------------------------------------------------
Administrative Class 20 207 3 30
- --------------------------------------- ------------------------------------------------
Class A 242 2,582 69 715
- --------------------------------------- ------------------------------------------------
Class B 475 5,076 117 1,236
- --------------------------------------- ------------------------------------------------
Class C 729 7,773 172 1,809
- --------------------------------------- ------------------------------------------------
Shares issued in reorganization
Class A 0 0 0 0
- --------------------------------------- ------------------------------------------------
Class B 0 0 0 0
- --------------------------------------- ------------------------------------------------
Class C 0 0 0 0
- --------------------------------------- ------------------------------------------------
Issued as reinvestment
of distributions
Institutional Class 399 4,266 2,246 23,548
- --------------------------------------- ------------------------------------------------
Administrative Class 0 3 0 0
- --------------------------------------- ------------------------------------------------
Class A 3 36 0 1
- --------------------------------------- ------------------------------------------------
Class B 4 45 0 2
- --------------------------------------- ------------------------------------------------
Class C 7 81 0 3
- --------------------------------------- ------------------------------------------------
Cost of shares redeemed
Institutional Class (3,164) (33,534) (18,761) (205,567)
- --------------------------------------- ------------------------------------------------
Administrative Class (1) (9) 0 0
- --------------------------------------- ------------------------------------------------
Class A (10) (103) (1) (6)
- --------------------------------------- ------------------------------------------------
Class B (27) (290) 0 0
- --------------------------------------- ------------------------------------------------
Class C (29) (312) 0 (2)
- --------------------------------------- ------------------------------------------------
Net increase(decrease) resulting from
Fund share transactions 7,541 $ 80,714 (1,693) $ (22,728)
- --------------------------------------- ------------------------------------------------
</TABLE>
1997 Semiannual Report 103
<PAGE>
Notes to Financial Statements (Cont.)
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Emerging Markets
Global Bond Fund Bond Fund
--------------------------------------------------- ------------------------
Period Ended 9/30/97 Year Ended 3/31/97 Period Ended 9/30/97
Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 6,038 $ 60,200 8,566 $ 87,843 340 $ 3,400
- ----------------------------------- --------------------------------------------------- ------------------------
Administrative Class 1,122 11,235 60 632 0 0
- ----------------------------------- --------------------------------------------------- ------------------------
Class A 0 0 0 0 16 155
- ----------------------------------- --------------------------------------------------- ------------------------
Class B 0 0 0 0 6 57
- ----------------------------------- --------------------------------------------------- ------------------------
Class C 0 0 0 0 8 78
- ----------------------------------- --------------------------------------------------- ------------------------
Shares issued in reorganization
Class A 0 0 0 0 0 0
- ----------------------------------- --------------------------------------------------- ------------------------
Class B 0 0 0 0 0 0
- ----------------------------------- --------------------------------------------------- ------------------------
Class C 0 0 0 0 0 0
- ----------------------------------- --------------------------------------------------- ------------------------
Issued as reinvestment of distributions
Institutional Class 411 4,100 1,227 12,695 4 39
- ----------------------------------- --------------------------------------------------- ------------------------
Administrative Class 10 96 2 17 0 0
- ----------------------------------- --------------------------------------------------- ------------------------
Class A 0 0 0 0 0 0
- ----------------------------------- --------------------------------------------------- ------------------------
Class B 0 0 0 0 0 0
- ----------------------------------- --------------------------------------------------- ------------------------
Class C 0 0 0 0 0 1
- ----------------------------------- --------------------------------------------------- ------------------------
Cost of shares redeemed
Institutional Class (1,624) (16,032) (1,227) (12,625) 0 0
- ----------------------------------- --------------------------------------------------- ------------------------
Administrative Class (1,111) (10,939) (27) (273) 0 0
- ----------------------------------- --------------------------------------------------- ------------------------
Class A 0 0 0 0 (1) (13)
- ----------------------------------- --------------------------------------------------- ------------------------
Class B 0 0 0 0 0 0
- ----------------------------------- --------------------------------------------------- ------------------------
Class C 0 0 0 0 0 0
- ----------------------------------- --------------------------------------------------- ------------------------
Net increase (decrease) resulting
from Fund share transactions 4,846 $ 48,660 8,601 $ 88,289 373 $3,717
- ----------------------------------- --------------------------------------------------- ------------------------
<CAPTION>
High Yield Fund
---------------------------------------------------------
Period Ended 9/30/97 Year Ended 3/31/97
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 34,342 $393,380 37,480 $414,058
- ----------------------------------------- ---------------------------------------------------------
Administrative Class 1,168 13,450 1,323 14,665
- ----------------------------------------- ---------------------------------------------------------
Class A 2,248 25,619 480 5,390
- ----------------------------------------- ---------------------------------------------------------
Class B 3,618 41,404 1,083 12,160
- ----------------------------------------- ---------------------------------------------------------
Class C 4,127 47,099 1,380 15,420
- ----------------------------------------- ---------------------------------------------------------
Shares issued in reorganization
- ----------------------------------------- ---------------------------------------------------------
Class A 0 0 2,634 29,527
- ----------------------------------------- ---------------------------------------------------------
Class B 0 0 4,447 49,852
- ----------------------------------------- ---------------------------------------------------------
Class C 0 0 18,228 204,339
- ----------------------------------------- ---------------------------------------------------------
Issued as reinvestment of distributions
Institutional Class 3,015 34,541 6,306 69,870
- ----------------------------------------- ---------------------------------------------------------
Administrative Class 38 441 31 353
- ----------------------------------------- ---------------------------------------------------------
Class A 86 982 25 271
- ----------------------------------------- ---------------------------------------------------------
Class B 130 1,490 37 412
- ----------------------------------------- ---------------------------------------------------------
Class C 453 5,186 163 1,819
- ----------------------------------------- ---------------------------------------------------------
Cost of shares redeemed
Institutional Class (11,420) (127,621) (25,767) (286,865)
- ----------------------------------------- ---------------------------------------------------------
Administrative Class (118) (1,348) (506) (5,554)
- ----------------------------------------- ---------------------------------------------------------
Class A (696) (7,877) (537) (6,044)
- ----------------------------------------- ---------------------------------------------------------
Class B (518) (5,898) (136) (1,524)
- ----------------------------------------- ---------------------------------------------------------
Class C (2,178) (24,723) (1,272) (14,308)
- ----------------------------------------- ---------------------------------------------------------
Net increase (decrease) resulting from
Fund share transactions 34,295 $396,125 45,399 $503,841
- ----------------------------------------- ---------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Money Market Fund
---------------------------------------------------------
Period Ended 9/30/97 Year Ended 3/31/97
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 59,441 $ 59,441 48,817 $ 48,817
----------------------------------------- ---------------------------------------------------------
Administrative Class 646 646 8 8
- ----------------------------------------- ---------------------------------------------------------
Class A 809,718 809,718 303,692 303,692
- ----------------------------------------- ---------------------------------------------------------
Class B 6,460 6,460 3,657 3,657
- ----------------------------------------- ---------------------------------------------------------
Class C 542,673 542,673 262,815 262,815
- ----------------------------------------- ---------------------------------------------------------
Shares issued in reorganization
Class A 0 0 14,653 14,653
- ----------------------------------------- ---------------------------------------------------------
Class B 0 0 2,499 2,499
- ----------------------------------------- ---------------------------------------------------------
Class C 0 0 52,050 52,050
- ----------------------------------------- ---------------------------------------------------------
Issued as reinvestment of distributions
Institutional Class 749 749 1,077 1,077
- ----------------------------------------- ---------------------------------------------------------
Administrative Class 0 0 1 1
- ----------------------------------------- ---------------------------------------------------------
Class A 458 458 192 192
- ----------------------------------------- ---------------------------------------------------------
Class B 46 46 15 15
- ----------------------------------------- ---------------------------------------------------------
Class C 1,201 1,201 605 605
- ----------------------------------------- ---------------------------------------------------------
Cost of shares redeemed
Institutional Class (46,048) (46,048) (52,332) (52,332)
- ----------------------------------------- ---------------------------------------------------------
Administrative Class (13) (13) (7) (7)
- ----------------------------------------- ---------------------------------------------------------
Class A (809,074) (809,074) (274,948) (274,948)
- ----------------------------------------- ---------------------------------------------------------
Class B (7,065) (7,065) (3,028) (3,028)
- ----------------------------------------- ---------------------------------------------------------
Class C (569,571) (569,571) (230,072) (230,072)
- ----------------------------------------- ---------------------------------------------------------
Net increase (decrease) resulting from
Fund share transactions (10,379) $ (10,379) 129,694 $ 129,694
- ----------------------------------------- ---------------------------------------------------------
<CAPTION>
StocksPLUS Fund
---------------------------------------------------------
Period Ended 9/30/97 Year Ended 3/31/97
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 10,745 $ 143,556 7,685 $ 91,156
- ----------------------------------------- ---------------------------------------------------------
Administrative Class 22 295 64 746
- ----------------------------------------- ---------------------------------------------------------
Class A 2,092 27,945 515 6,245
- ----------------------------------------- ---------------------------------------------------------
Class B 2,484 33,288 720 8,743
- ----------------------------------------- ---------------------------------------------------------
Class C 3,032 40,503 1,276 15,506
- ----------------------------------------- ---------------------------------------------------------
Shares issued in reorganization
Class A 0 0 0 0
- ----------------------------------------- ---------------------------------------------------------
Class B 0 0 0 0
- ----------------------------------------- ---------------------------------------------------------
Class C 0 0 0 0
- ----------------------------------------- ---------------------------------------------------------
Issued as reinvestment of distributions
Institutional Class 583 8,121 2,419 28,060
- ----------------------------------------- ---------------------------------------------------------
Administrative Class 2 22 1 8
- ----------------------------------------- ---------------------------------------------------------
Class A 40 556 5 64
- ----------------------------------------- ---------------------------------------------------------
Class B 46 655 7 86
- ----------------------------------------- ---------------------------------------------------------
Class C 59 810 13 156
- ----------------------------------------- ---------------------------------------------------------
Cost of shares redeemed
Institutional Class (5,250) (72,360) (3,137) (36,460)
- ----------------------------------------- ---------------------------------------------------------
Administrative Class (3) (45) (5) (58)
- ----------------------------------------- ---------------------------------------------------------
Class A (204) (2,744) (15) (182)
- ----------------------------------------- ---------------------------------------------------------
Class B (98) (1,343) (3) (33)
- ----------------------------------------- ---------------------------------------------------------
Class C (422) (5,672) (306) (3,565)
- ----------------------------------------- ---------------------------------------------------------
Net increase (decrease) resulting from
Fund share transactions 13,128 $ 173,587 9,239 $110,472
- ----------------------------------------- ---------------------------------------------------------
<CAPTION>
Strategic Balanced Fund
---------------------------------------------------------
Period Ended 9/30/97 Period Ended 3/31/97
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 2,462 $ 29,225 1,003 $ 10,032
- ----------------------------------------- ---------------------------------------------------------
Administrative Class 0 0 0 0
- ----------------------------------------- ---------------------------------------------------------
Class A 0 0 0 0
- ----------------------------------------- ---------------------------------------------------------
Class B 0 0 0 0
- ----------------------------------------- ---------------------------------------------------------
Class C 0 0 0 0
- ----------------------------------------- ---------------------------------------------------------
Shares issued in reorganization
Class A 0 0 0 0
- ----------------------------------------- ---------------------------------------------------------
Class B 0 0 0 0
- ----------------------------------------- ---------------------------------------------------------
Class C 0 0 0 0
- ----------------------------------------- ---------------------------------------------------------
Issued as reinvestment of distributions
Institutional Class 1 12 0 3
- ----------------------------------------- ---------------------------------------------------------
Administrative Class 0 0 0 0
- ----------------------------------------- ---------------------------------------------------------
Class A 0 0 0 0
- ----------------------------------------- ---------------------------------------------------------
Class B 0 0 0 0
- ----------------------------------------- ---------------------------------------------------------
Class C 0 0 0 0
- ----------------------------------------- ---------------------------------------------------------
Cost of shares redeemed
Institutional Class (15) (181) 0 0
- ----------------------------------------- ---------------------------------------------------------
Administrative Class 0 0 0 0
- ----------------------------------------- ---------------------------------------------------------
Class A 0 0 0 0
- ----------------------------------------- ---------------------------------------------------------
Class B 0 0 0 0
- ----------------------------------------- ---------------------------------------------------------
Class C 0 0 0 0
- ----------------------------------------- ---------------------------------------------------------
Net increase (decrease) resulting from
Fund share transactions 2,448 $ 29,056 1,003 $ 10,035
- ----------------------------------------- ---------------------------------------------------------
</TABLE>
104 PIMCO Funds
<PAGE>
7. Retail Class Summaries
The following amounts relate to items accumulated in the Statement of Assets and
Liabilities, the Statement of Operations and the Statement of Changes in Net
Assets (amounts in thousands):
<TABLE>
<CAPTION>
Total Low Short-Term Long-Term Real Return
For the period ended 9/30/97 Return Fund Duration Fund Fund U.S. Gov't Fund Bond Fund
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Shares Issued and Outstanding
Class A 22,472 7,078 750 268 66
- ---------------------------------------------------------------------------------------------------------------------------
Class B 9,988 832 60 197 93
- ---------------------------------------------------------------------------------------------------------------------------
Class C 31,971 5,848 369 148 51
- ---------------------------------------------------------------------------------------------------------------------------
64,431 13,758 1,179 613 210
======================================================================================
Distribution and Servicing Fees
Class A $ 219 $ 80 $ 9 $ 2 $ 1
- ---------------------------------------------------------------------------------------------------------------------------
Class B 440 33 1 5 4
- ---------------------------------------------------------------------------------------------------------------------------
Class C 1,672 221 7 5 2
- ---------------------------------------------------------------------------------------------------------------------------
$ 2,331 $ 334 $ 17 $ 12 $ 7
======================================================================================
Distributions to Shareholders
From net investment income
Class A $ 4,971 $ 1,801 $ 174 $ 54 $ 9
- ---------------------------------------------------------------------------------------------------------------------------
Class B 2,177 166 9 27 16
- ---------------------------------------------------------------------------------------------------------------------------
Class C 8,363 1,557 68 21 9
- ---------------------------------------------------------------------------------------------------------------------------
$ 15,511 $ 3,524 $ 251 $ 102 $ 34
======================================================================================
<CAPTION>
Emerging
Foreign Markets High Yield Money StocksPLUS
For the period ended 9/30/97 Bond Fund Bond Fund Fund Market Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Shares Issued and Outstanding
Class A 304 14 4,239 44,690 2,433
- ---------------------------------------------------------------------------------------------------------------------------
Class B 570 6 8,661 2,585 3,156
- ---------------------------------------------------------------------------------------------------------------------------
Class C 878 8 20,901 59,701 3,652
- ---------------------------------------------------------------------------------------------------------------------------
1,752 28 33,801 106,976 9,241
======================================================================================
Distribution and Servicing Fees
Class A $ 2 $ 0 $ 46 $ 15 $ 24
- ---------------------------------------------------------------------------------------------------------------------------
Class B 16 0 384 13 127
- ---------------------------------------------------------------------------------------------------------------------------
Class C 27 0 1,111 31 120
- ---------------------------------------------------------------------------------------------------------------------------
$ 45 $ 0 $ 1,541 $ 59 $ 271
======================================================================================
Distributions to Shareholders
From net investment income
Class A $ 40 $ 1 $ 1,561 $ 754 $ 594
- ---------------------------------------------------------------------------------------------------------------------------
Class B 56 0 2,954 56 678
- ---------------------------------------------------------------------------------------------------------------------------
Class C 88 0 8,564 1,537 849
- ---------------------------------------------------------------------------------------------------------------------------
$ 184 $ 1 $ 13,079 $ 2,347 $ 2,121
======================================================================================
<CAPTION>
Total Low Short-Term Long-Term Real Return
For the period ended 3/31/97 Return Fund Duration Fund Fund U.S. Gov't Fund Bond Fund
- ---------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders
From net investment income
Class A $ 1,116 $ 618 $ 10 $ 10 $ 0
- ---------------------------------------------------------------------------------------------------------------------------
Class B 717 48 1 2 1
- ---------------------------------------------------------------------------------------------------------------------------
Class C 3,419 636 4 1 0
- ---------------------------------------------------------------------------------------------------------------------------
5,252 1,302 15 13 1
======================================================================================
In excess of net investment income
Class A 28 18 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------
Class B 18 1 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------
Class C 85 19 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------
$ 131 $ 38 $ 0 $ 0 $ 0
======================================================================================
<CAPTION>
Foreign High Yield Money StocksPLUS
For the period ended 3/31/97 Bond Fund Fund Market Fund Fund
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
Distributions to Shareholders
From net investment income
Class A $ 1 $ 502 $ 263 $ 70
- --------------------------------------------------------------------------------------------------------
Class B 2 820 16 93
- --------------------------------------------------------------------------------------------------------
Class C 3 3,086 617 161
- --------------------------------------------------------------------------------------------------------
$ 6 $ 4,408 $ 896 $ 324
===================================================================
</TABLE>
1997 Semiannual Report 105
<PAGE>
Notes to Financial Statements (Cont.)
September 30, 1997 (Unaudited)
8. Reorganization
Each Acquiring Fund, as listed below, acquired the assets and certain
liabilities of the Acquired Fund, also listed below, in a tax-free exchange for
shares of the Acquiring Fund, pursuant to a plan of reorganization approved by
the Acquired Fund's shareholders. (amounts in thousands):
<TABLE>
<CAPTION>
Total
Shares Value of Total Net Net Assets Acquired
Issued by Shares Issued Assets of Total Net of Acquiring Fund(s)
Acquiring by Acquiring Acquired Assets of Fund After Unrealized
Acquiring Fund Acquired Fund(s) Date Fund Fund Fund(s) Acquiring Fund Acquisition Appreciation
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PIMCO PIMCO Advisors
Total Return Fund Total Return Income Fund
and PIMCO Advisors
U.S. Government Fund 01/17/97 47,783 $ 499,338 $ 499,338 $ 12,445,156 $12,944,494 $ 5,236
PIMCO PIMCO Advisors
Low Duration Fund Short-Intermediate Fund 01/17/97 11,967 120,271 120,271 2,829,201 2,949,472 448
PIMCO PIMCO Advisors
High Yield Fund High Income Fund 01/17/97 25,309 283,718 283,718 791,932 1,075,650 12,610
PIMCO PIMCO Advisors
Money Market Fund Money Market Fund 01/17/97 69,202 69,202 69,202 25,027 94,229 0
</TABLE>
9. Federal Income Tax Matters
As of March 31, 1997, the Funds listed in the table below had remaining capital
loss carryforwards that were realized or acquired in prior years. Use of the
acquired capital loss carryforwards may be limited under current tax laws.
Additionally, the Total Return, Total Return II, Total Return III, Low
Duration II, Low Duration III and Long-Term U.S. Government Funds realized
capital losses during the fiscal year ended March 31, 1997 for which the Fund
elected to defer them to the following fiscal year pursuant to income tax
regulations. The amounts are $96,365,587, $1,431,460, $2,784,755, $377,408,
$29,606 and $1,931,570, respectively.
Each Fund will resume capital gains distributions in the future to the
extent gains are realized in excess of the available carryforwards.
<TABLE>
<CAPTION>
Capital Loss Carryforwards (amounts in thousands)
-------------------------------------------------
Realized Losses Acquired Losses Expiration
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Total Return Fund $ 8,241 $ - 03/31/05
- 988 03/31/04
- 8,501 03/31/02
- 17,277 03/31/01
Total Return Fund II 2,977 - 03/31/05
Low Duration Fund 2,898 - 03/31/03
- 1,170 03/31/02
- 3,550 03/31/01
- 738 03/31/99
Low Duration Fund II 344 - 03/31/05
469 - 03/31/03
High Yield Fund - 50,541 03/31/02
- 5,495 03/31/01
- 28,820 03/31/98
</TABLE>
106 PIMCO Funds
<PAGE>
[This Page Intentionally Left Blank]
<PAGE>
[This Page Intentionally Left Blank]
<PAGE>
Pacific Investment Management Company is responsible for the management and
administration of the PIMCO Funds. Founded in 1971, Pacific Investment
Management Company currently manages assets in excess of $108 billion on behalf
of mutual fund and institutional clients located around the world.
Pacific Investment Management Company is one of six investment advisory firms
which form PIMCO Advisors L.P., the nation's fourth largest publicly traded
investment management concern with combined assets under management in excess of
$130 billion. Widely recognized for providing consistent performance and high-
quality client service, the six affiliated firms are:
Pacific Investment Management Company/Newport Beach, California
Columbus Circle Investors/Stamford, Connecticut
Cadence Capital Management/Boston, Massachusetts
NFJ Investment Group/Dallas, Texas
Parametric Portfolio Associates/Seattle, Washington
Blairlogie Capital Management/Edinburgh, Scotland
Units of PIMCO Advisors L.P. trade on the New York Stock Exchange under the
ticker symbol "PA."
Trustees and Officers
Brent R. Harris Chairman and Trustee
Guilford C. Babcock Trustee
Vern O. Curtis Trustee
Thomas P. Kemp Trustee
William J. Popejoy Trustee
R. Wesley Burns President
Garlin G. Flynn Secretary
John P. Hardaway Treasurer
Investment Advisor and Administrator
Pacific Investment Management Company
840 Newport Center Drive, Suite 360
Newport Beach, California 92660
Transfer Agent and Custodian
Investors Fiduciary Trust Company
801 Pennsylvania
Kansas City, Missouri 64105
Counsel
Dechert Price & Rhoads
1500 K Street N.W.
Washington, D.C. 20005
Independent Accountants
Price Waterhouse LLP
1055 Broadway
Kansas City, Missouri 64105
<PAGE>
P I M C O
840 Newport Center Drive, Suite 360
Newport Beach, CA 92660
800.927.4648
This report is submitted for the general information of the shareholders
of the PIMCO Funds. It is not authorized for distribution to prospective
investors unless accompanied or preceded by an effective prospectus
for the PIMCO Funds, which contains information covering its investment
policies as well as other pertinent information.
PIMCO Funds Distribution Company
2187 Atlantic Street Stamford, CT 06902
