<PAGE>
As filed with the Securities and Exchange Commission on April 30, 1997
File No. 33-12113, 811-5028
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X]
Post-Effective Amendment No. 34 [X]
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [X]
Amendment No. 38 [X]
PIMCO Funds
(Exact Name of Registrant as Specified in Charter)
840 Newport Center Drive
Newport Beach, California 92660
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code:
(714) 760-4867
Robert W. Helm, Esq. R. Wesley Burns
Dechert Price & Rhoads Pacific Investment Management Company
1500 K Street, N.W. 840 Newport Center Drive
Washington, D.C. 20005 Newport Beach, California 92660
(Name and Address of Agent for Service)
It is proposed that this filing will become effective (check appropriate box):
[_] immediately upon filing pursuant to paragraph (b)
[X] on May 1, 1997 pursuant to paragraph (b)
[_] 60 days after filing pursuant to paragraph (a)
[_] on (date) pursuant to paragraph (a)(2) of Rule 485
CALCULATION OF REGISTRATION FEE UNDER THE SECURITIES ACT OF 1933
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
Proposed Maximum
Offering
Title of Number Price per Proposed Amount of
Securities of Shares Share (within Maximum Registration
Being Being 15 days of Offering Fee
Registered Registered filing) Price
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares of Indefinite* N/A N/A N/A
Beneficial
Interest,
Par Value
$.0001
</TABLE>
* Registrant has elected to register an indefinite number of shares of
beneficial interest pursuant to Rule 24f-2 under the Investment Company Act of
1940. Registrant filed the Notice required by Rule 24f-2 on May 30, 1996.
<PAGE>
EXPLANATORY NOTE
----------------
This post-effective amendment no. 34 to the Registrant's registration
statement on Form N-1A (File No. 33-12113) is being filed for the sole purpose
of adding to the Registrant's registration statement a prospectus describing the
Class A shares of the PIMCO Total Return Fund. The amendment does not affect
any of the Registrant's currently effective prospectuses or its statement of
additional information, each of which is hereby incorporated by reference from
the most recent filing related to the same (File No. 33-12113) under Rule 497
under the Securities Act of 1933.
<PAGE>
CROSS-REFERENCE SHEET
REQUIRED BY RULE 495
UNDER THE SECURITIES ACT OF 1933
PART A
Institutional Class and Administrative Class Prospectus
Information Required in Prospectus
----------------------------------
Item Number Heading
- ----------- -------
1 Cover Page
2 Prospectus Summary, Expense Information
3 Financial Highlights
4 Investment Objectives and Policies;
Characteristics and Risks of Securities and
Investment Techniques; Other Information
5 Management of the Trust
5A Information Contained in Registrant's
Annual Report
6 Dividends, Distributions and Taxes;
Other Information
7 Purchase of Shares; Net Asset Value
8 Redemption of Shares
9 Not Applicable
<PAGE>
PART A
Class A, Class B, and Class C Prospectus
Information Required in Prospectus
----------------------------------
Item Number Heading
----------- -------
1 Cover Page
2 Schedule of Fees
3 Financial Highlights
4 Investment Objectives and Policies;
Characteristics and Risks of Securities and
Investment Techniques
5 Management of the Trust
5A Information Contained in Registrant's
Annual Report
6 Distributions; Taxes; Description of
the Trust
7 How to Buy Shares; Alternative Purchase
Arrangements; Exchange Privilege; Distributor
and Distribution and Servicing Plans; How Net
Asset Value is Determined
8 How to Redeem
9 Not Applicable
<PAGE>
Part A
PIMCO Total Return Fund
Class A Prospectus
Information Required in Prospectus
----------------------------------
Item Number Heading
----------- -------
1 Cover Page
2 Schedule of Fees
3 Not Applicable
4 Investment Objective and Policies;
Characteristics and Risks of Securities
and Investment Techniques
5 Management of the Trust
5A Information Contained in Registrant's
Annual Report
6 Distributions; Taxes; Description of
the Trust
7 How to Buy Shares; Exchange Privilege;
Distributor and Distribution and
Servicing Plan; How Net Asset Value is
Determined
8 How to Redeem
9 Not Applicable
<PAGE>
PART B
Information Required in Statement of Additional Information
-----------------------------------------------------------
Item Number Heading
----------- -------
10 Cover Page
11 Table of Contents
12 Not Applicable
13 Investment Objectives and Policies; Investment
Restrictions
14 Trustees and Officers
15 Voting Rights
16 Management of the Trust; Distribution of Trust
Shares; Custodian, Transfer Agent and Dividend
Disbursing Agent
17 Portfolio Transactions and Brokerage
18 Other Information
19 Distribution of Trust Shares; Net Asset Value
20 Taxation
21 Distribution of Trust Shares
22 Performance Information
23 Financial Statements
<PAGE>
PIMCO TOTAL RETURN FUND
May 1, 1997
- -------------------------------------------------------------------------------
OBJECTIVE
Seeks to maximize total return, consistent with preservation of capital and
prudent investment management.
- --------------------------------------------------------------------------------
PRIMARY INVESTMENTS
An intermediate-term portfolio of investment grade fixed income securities.
- --------------------------------------------------------------------------------
INVESTMENT STYLE
Total Return Strategy The Fund seeks total return--yield plus appreciation.
Risk Management The portfolio manager seeks to manage risk in a number of ways,
such as by maintaining an intermediate-term portfolio with a duration that
normally varies within a 3-to 6-year time frame. However, net asset value will
fluctuate.
Quality The Fund maintains a portfolio primarily consisting of investment grade
fixed income securities.
Diversification Subject to market conditions, the Fund actively invests across
all sectors of the fixed income market in order to maximize investment
opportunities.
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER
Bill Gross of Pacific Investment Management Company, a PIMCO Advisors
institutional investment firm. With over $91 billion in assets under management
($19 billion in mutual funds), the firm is one of the largest bond managers in
the country. Bill Gross has over 25 years of investment experience.
- --------------------------------------------------------------------------------
FUND PERFORMANCE
For the latest fund performance returns call 1-800-227-7337.
For more information about the Fund, see the following prospectus.
PIMCO FUNDS
<PAGE>
Prospectus
PIMCO Total Return Fund
May 1, 1997
PIMCO Funds (the "Trust") is an open-end series management invest-
ment company consisting of twenty separate investment portfolios,
each with different investment objectives and strategies. The To-
tal Return Fund (the "Fund") is described herein. The Trust is de-
signed to provide access to the professional investment management
services offered by Pacific Investment Management Company ("Pa-
cific Investment Management"), which serves as investment advisor
(the "Advisor") to the Fund. The address of PIMCO Funds is 840
Newport Center Drive, Suite 360, Newport Beach, CA 92660.
The Fund offers Class A shares in this Prospectus, which is in-
tended for participants in designated employer-sponsored retire-
ment or savings plans. Through other prospectuses, the Fund and
the other series of the Trust offer Class A shares (sold subject
to a front-end sales charge) for public investment, and offer up
to four additional classes of shares, including Institutional
Class shares, Administrative Class shares, Class B shares (sold
subject to a contingent deferred sales charge) and Class C shares
(sold subject to an asset based sales charge). See "Description of
the Trust--Multiple Classes of Shares."
This Prospectus concisely describes the information investors
should know before investing in the Fund. Please read this Pro-
spectus carefully and keep it for further reference.
Information about the investment objective of the Fund, along with
a detailed description of the types of securities in which the
Fund may invest and of investment policies and restrictions appli-
cable to the Fund, are set forth in this Prospectus. There can be
no assurance that the investment objective of the Fund will be
achieved. Because the market value of the Fund's investments will
change, the investment returns and net asset value per share of
the Fund will vary.
The Fund is an investment option under an employer-sponsored re-
tirement or savings program. The administrator of a retirement
plan or an employee benefits office can provide participants with
detailed information on how to participate in such a plan and how
to elect the Fund as an investment option. Please call 800-426-
0107 with any questions about the Fund. Questions about a partici-
pant's plan account should be directed to the plan administrator
or the organization that provides recordkeeping services for the
plan.
A Statement of Additional Information, dated January 14, 1997, as
amended or supplemented from time to time, is available free of
charge by writing to PIMCO Funds Distribution Company (the "Dis-
tributor"), 2187 Atlantic Street, Stamford, Connecticut 06902, or
by telephoning 800-426-0107. The Statement of Additional Informa-
tion, which contains more detailed information about the Trust,
has been filed with the Securities and Exchange Commission and is
incorporated by reference in this Prospectus.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SE-
CURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMIS-
SION, NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE
SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OF-
FENSE.
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARAN-
TEED OR ENDORSED BY, ANY FINANCIAL INSTITUTION, AND THE SHARES ARE
NOT FEDERALLY INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORA-
TION, THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY.
THE FUND MAY INVEST ALL OF ITS ASSETS IN DERIVATIVE INSTRUMENTS,
SOME OF WHICH MAY BE PARTICULARLY SENSITIVE TO CHANGES IN PREVAIL-
ING INTEREST RATES. UNEXPECTED CHANGES IN INTEREST RATES MAY AD-
VERSELY AFFECT THE VALUE OF THE FUND'S INVESTMENTS IN PARTICULAR
DERIVATIVE INSTRUMENTS.
TABLE OF CONTENTS
<TABLE>
<S> <C>
Overview...................... 3
Schedule of Fees.............. 3
Investment Objective and
Policies...................... 4
Investment Risks and
Considerations................ 5
Characteristics and Risks of
Securities
and Investment Techniques.... 6
Performance Information....... 17
How to Buy Shares............. 18
Exchange Privilege............ 19
How to Redeem................. 19
</TABLE>
<TABLE>
<S> <C>
Distributor and Distribution and
Servicing Plan.................... 19
How Net Asset Value Is Determined
.................................. 20
Distributions..................... 21
Taxes............................. 21
Management of the Trust........... 22
Description of the Trust.......... 24
Mailings to Shareholders.......... 25
Appendix A -- Description of
Duration.......................... 26
Appendix B -- Description of
Securities Ratings................ 27
</TABLE>
PIMCO Funds: Pacific Investment Management Series
2
<PAGE>
Overview
Pacific Investment Management, a subsidiary partnership of PIMCO
Advisors L.P., is the investment adviser of the Fund. Pacific In-
vestment Management is one of the premier fixed income investment
management firms in the U.S. As of March 31, 1997, Pacific Invest-
ment Management had over $91 billion in assets under management.
Pacific Investment Management invests in all sectors of the fixed
income market, using its total return philosophy--seeking capital
appreciation as well as yield.
FUND
PROFILE <TABLE>
<CAPTION>
PIMCO FUND NAME PRIMARY OBJECTIVE DURATION CREDIT QUALITY(/1/)
---------------------------------------------------------------------------------
<S> <C> <C> <C>
TOTAL RETURN
FUND Maximum total return, consistent 3-6 years B to Aaa; max
with preservation of capital 10% below Baa
and prudent investment management
</TABLE>
1. As rated by Moody's Investors Service, Inc., or if unrated, de-
termined to be of comparable quality. For specific information
concerning the credit quality of the securities in the Fund's
portfolio, see "Investment Objective and Policies."
Schedule of Fees
SHAREHOLDER
TRANSACTION
EXPENSES
<TABLE>
<CAPTION>
CLASS A SHARES
--------------------------------------------------------------
<S> <C>
MAXIMUM INITIAL SALES CHARGE IMPOSED ON
PURCHASES None(/1/)
--------------------------------------------------------------
MAXIMUM SALES CHARGE IMPOSED ON REINVESTED
DIVIDENDS None
--------------------------------------------------------------
MAXIMUM CONTINGENT DEFERRED SALES CHARGE
("CDSC") None(/1/)
--------------------------------------------------------------
EXCHANGE FEE None
</TABLE>
1. Applies only to shares purchased through designated 401(k)
plans.
OPERATING
EXPENSES <TABLE>
<CAPTION>
EXAMPLE: You
would pay the
following
expenses on a
$1,000 investment
assuming (1) 5%
annual return and
(2) redemption at
ANNUAL FUND OPERATING EXPENSES the end of each
(As a percentage of average net assets): time period:
TOTAL FUND
ADVISORY ADMINISTRATIVE 12b-1 OPERATING YEAR
FUND FEE FEE FEES(/1/) EXPENSES 1 3 5 10
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL
RETURN .25% .40% .25% .90% $9 $29 $50 $111
-----------------------------------------------------------------------
</TABLE>
1. 12b-1 fees represent servicing fees which are paid annually to
the Distributor and repaid to participating brokers, certain banks
and other financial intermediaries. See "Distributor and Distribu-
tion and Servicing Plans."
The purpose of the foregoing tables is to assist investors in un-
derstanding the various costs and expenses of the Trust that are
borne directly or indirectly by Class A shareholders of the Fund.
NOTE: THE FIGURES SHOWN IN THE EXAMPLE ARE ENTIRELY HYPOTHETICAL,
AND ASSUME NO PAYMENT OF A SALES LOAD. THEY ARE NOT REPRESENTA-
TIONS OF PAST OR FUTURE PERFORMANCE OR EXPENSES; ACTUAL PERFOR-
MANCE AND/OR EXPENSES MAY BE MORE OR LESS THAN SHOWN.
May 1, 1997 Prospectus
3
<PAGE>
Investment Objective and Policies
The investment objective and general investment policies of the
Fund are described below. There can be no assurance that the in-
vestment objective of the Fund will be achieved. The value of all
securities and other instruments held by the Fund will vary from
time to time in response to a wide variety of market factors. Con-
sequently, the net asset value per share of the Fund will vary.
The investment objective of the Fund is fundamental and may not
be changed without shareholder approval by vote of a majority of
the outstanding shares of the Fund. If there is a change in the
Fund's investment objective, including a change approved by a
shareholder vote, shareholders should consider whether the Fund
remains an appropriate investment in light of their then current
financial position and needs.
Specific portfolio securities eligible for purchase by the
Fund, investment techniques that may be used by the Fund, and the
risks associated with these securities and techniques are de-
scribed more fully under "Characteristics and Risks of Securities
and Investment Techniques" in this Prospectus and "Investment Ob-
jectives and Policies" in the Statement of Additional Information.
TOTAL The investment objective of the Fund is to seek to maximize total
RETURN FUND return, consistent with preservation of capital and prudent in-
DESCRIPTION vestment management.
In selecting securities for the Fund, the Advisor utilizes eco-
nomic forecasting, interest rate anticipation, credit and call
risk analysis, foreign currency exchange rate forecasting, and
other security selection techniques. The proportion of the Fund's
assets committed to investment in securities with particular char-
acteristics (such as maturity, type and coupon rate) will vary
based on the Advisor's outlook for the U.S. and foreign economies,
the financial markets, and other factors.
The Fund invests under normal circumstances at least 65% of its
assets in a diversified portfolio of the following types of secu-
rities, which may have a variety of maturities: securities issued
or guaranteed by the U.S. Government, its agencies or instrumen-
talities ("U.S. Government securities"); corporate debt securi-
ties, including convertible securities and corporate commercial
paper; mortgage-backed and other asset-backed securities; infla-
tion-indexed bonds issued by both governments and corporations;
structured notes and loan participations; bank certificates of de-
posit, fixed time deposits and bankers' acceptances; repurchase
agreements and reverse repurchase agreements; obligations of for-
eign governments or their subdivisions, agencies and instrumental-
ities; and obligations of international agencies or supranational
entities. Fixed income securities may have fixed, variable, or
floating rates of interest, including rates of interest that vary
inversely at a multiple of a designated or floating rate, or that
vary according to changes in relative values of currencies.
The average portfolio duration of the Fund will normally vary
within a three- to six-year time frame based on the Advisor's
forecast for interest rates. The Fund may invest up to 10% of its
assets in fixed income securities that are rated below investment
grade (i.e., securities rated at least Baa by Moody's Investors
Service, Inc. ("Moody's") or BBB by Standard & Poor's Corporation
("S&P")) but rated B or higher by Moody's or S&P (or, if unrated,
determined by the Advisor to be of comparable quality). For infor-
mation on the risks associated with investments in securities
rated below investment grade, see "Appendix B--Description of Se-
curities Ratings." The Fund may also invest up to 20% of its as-
sets in securities denominated in foreign currencies, and may in-
vest beyond this limit in U.S. dollar-denominated securities of
foreign issuers. Portfolio holdings will be concentrated in areas
of the bond market (based on quality, sector, coupon or maturity)
which the Advisor believes to be relatively undervalued. The Fund
may invest all of its assets in derivative instruments or in mort-
gage- or asset-backed securities.
As a non-fundamental, operating policy, the Advisor intends to
use foreign currency-related derivative instruments (currency
futures and related options, currency options, forward contracts
and swap agreements) in an effort to hedge foreign currency risk
with respect to at least 75% of the assets of the Fund denominated
in currencies other than the U.S. dollar. There can be no assur-
ance that the Advisor will be successful in doing so. The active
use of currency derivatives involves transaction costs which may
adversely affect yield and return.
PIMCO Funds: Pacific Investment Management Series
4
<PAGE>
TOTAL The "total return" sought by the Fund will consist of interest and
RETURN dividends from underlying securities, capital appreciation re-
flected in unrealized increases in value of portfolio securities
(realized by the shareholder only upon selling shares), or real-
ized from the purchase and sale of securities and use of futures
and options, or gains from favorable changes in foreign currency
exchange rates. Generally, over the long term, the total return
obtained by a portfolio investing primarily in fixed income secu-
rities is not expected to be as great as that obtained by a port-
folio that invests primarily in equity securities. At the same
time, the market risk and price volatility of a fixed income port-
folio is expected to be less than that of an equity portfolio, so
that a fixed income portfolio is generally considered to be a more
conservative investment. The change in market value of fixed in-
come securities (and therefore their capital appreciation or de-
preciation) is largely a function of changes in the current level
of interest rates.
In managing fixed income securities, one of the principal tools
generally used by the Advisor is "duration," which is a measure of
the expected life of a fixed income security on a present value
basis, incorporating a bond's yield, coupon interest payments, fi-
nal maturity and call features. See "Appendix A--Description of
Duration." Generally, when interest rates are falling, a portfolio
with a shorter duration will not generate as high a level of total
return as a portfolio with a longer duration. Conversely, when in-
terest rates are rising, a portfolio with a shorter duration will
generally outperform longer duration portfolios. When interest
rates are flat, shorter duration portfolios generally will not
generate as high a level of total return as longer duration port-
folios (assuming that long-term interest rates are higher than
short-term rates, which is commonly the case). With respect to the
composition of any fixed income portfolio, the longer the duration
of the portfolio, the greater the anticipated potential for total
return, with, however, greater attendant market risk and price
volatility than for a portfolio with a shorter duration. The mar-
ket value of fixed income securities denominated in currencies
other than the U.S. dollar also may be affected by movements in
foreign currency exchange rates.
Investment Risks and Considerations
The following are some of the principal risks of investing in the
Fund. Investors should read this Prospectus carefully for a more
complete discussion of the risks relating to an investment in the
Fund. The net asset value per share of the Fund may be less at the
time of redemption than it was at the time of investment. General-
ly, the value of fixed income securities can be expected to vary
inversely with changes in prevailing interest rates, i.e., as in-
terest rates rise, market value tends to decrease, and vice versa.
In addition, the Fund may invest in securities rated lower than
Baa by Moody's or BBB by S&P. Such securities carry a high degree
of credit risk and are considered speculative by the major rating
agencies.
The Fund may invest in securities of foreign issuers, which may
be subject to additional risk factors, including foreign currency
and political risks, not applicable to securities of U.S. issuers.
The Fund's investment techniques may involve a form of borrowing,
which may tend to exaggerate the effect on net asset value of any
increase or decrease in the market value of the Fund's portfolio
and may require liquidation of portfolio positions when it is not
advantageous to do so. The Fund may sell securities short, which
exposes the Fund to a risk of loss if the value of the security
sold short should increase.
The Fund may use derivative instruments, consisting of futures,
options, options on futures, and swap agreements, for hedging pur-
poses or as part of its investment strategies. Use of these in-
struments may involve certain costs and risks, including the risk
that the Fund could not close out a position when it would be most
advantageous to do so, the risk of an imperfect correlation be-
tween the value of the securities being hedged and the value of
the particular derivative instrument, and the risk that unexpected
changes in interest rates may adversely affect the value of the
Fund's investments in particular derivative instruments. Unless
otherwise indicated, all limitations applicable to the Fund's in-
vestments (as stated in this Prospectus and in the Statement of
Additional Information) apply only at the time a transaction is
entered into. Any subsequent change in a rating assigned by any
rating service to a security (or, if unrated, deemed to be of com-
parable quality), or change in the percentage of the Fund's assets
invested in certain
May 1, 1997 Prospectus
5
<PAGE>
securities or other instruments, or change in the average duration
of the Fund's investment portfolio, resulting from market fluctua-
tions or other changes in the Fund's total assets, will not re-
quire the Fund to dispose of an investment until the Advisor de-
termines that it is practicable to sell or close out the invest-
ment without undue market or tax consequences to the Fund. In the
event that ratings services assign different ratings to the same
security, the Advisor will determine which rating it believes best
reflects the security's quality and risk at that time, which may
be the higher of the several assigned ratings.
The Fund offers its shares to both retail and institutional in-
vestors. Institutional shareholders, some of whom also may be in-
vestment advisory clients of Pacific Investment Management, may
hold large positions in the Fund. Such shareholders may on occa-
sion make large redemptions of their holdings in the Fund to meet
their liquidity needs, in connection with strategic adjustments to
their overall portfolio of investments, or for other purposes.
Large redemptions from the Fund could require the Advisor to liq-
uidate portfolio positions when it is not most desirable to do so.
Liquidation of portfolio holdings also may cause the Fund to real-
ize taxable capital gains.
Characteristics and Risks of
Securities and Investment Techniques
The following describes in greater detail different types of secu-
rities and investment techniques used by the Fund, and discusses
certain concepts relevant to the investment policies of the Fund.
Additional information about the Fund's investments and investment
practices may be found in the Statement of Additional Information.
U.S. U.S. Government securities are obligations of, or guaranteed by,
GOVERNMENT the U.S. Government, its agencies or instrumentalities. The U.S.
SECURITIES Government does not guarantee the net asset value of the Fund's
shares. Some U.S. Government securities, such as Treasury bills,
notes and bonds, and securities guaranteed by the Government Na-
tional Mortgage Association ("GNMA"), are supported by the full
faith and credit of the United States; others, such as those of
the Federal Home Loan Banks, are supported by the right of the is-
suer to borrow from the U.S. Treasury; others, such as those of
the Federal National Mortgage Association ("FNMA"), are supported
by the discretionary authority of the U.S. Government to purchase
the agency's obligations; and still others, such as those of the
Student Loan Marketing Association, are supported only by the
credit of the instrumentality. U.S. Government securities include
securities that have no coupons, or have been stripped of their
unmatured interest coupons, individual interest coupons from such
securities that trade separately, and evidences of receipt of such
securities. Such securities may pay no cash income, and are pur-
chased at a deep discount from their value at maturity. Because
interest on zero coupon securities is not distributed on a current
basis but is, in effect, compounded, zero coupon securities tend
to be subject to greater market risk than interest-paying securi-
ties of similar maturities. Custodial receipts issued in connec-
tion with so-called trademark zero
coupon securities, such as CATs and TIGRs, are not issued by the
U.S. Treasury, and are therefore not U.S. Government securities,
although the underlying bond represented by such receipt is a debt
obligation of the U.S. Treasury. Other zero coupon Treasury secu-
rities (STRIPs and CUBEs) are direct obligations of the U.S. Gov-
ernment. The U.S. Treasury has recently begun issuing inflation-
indexed bonds. These securities are described below under "Infla-
tion-Indexed Bonds."
CORPORATE Corporate debt securities include corporate bonds, debentures,
DEBT notes and other similar corporate debt instruments, including con-
SECURITIES vertible securities. Debt securities may be acquired with warrants
attached. Corporate income-producing securities may also include
forms of preferred or preference stock. The rate of interest on a
corporate debt security may be fixed, floating or variable, and
may vary inversely with respect to a reference rate. See "Variable
and Floating Rate Securities" below. The rate of return or return
of principal on some debt obligations may be linked or indexed to
the level of exchange rates between the U.S. dollar and a foreign
currency or currencies.
PIMCO Funds: Pacific Investment Management Series
6
<PAGE>
Investments in corporate debt securities that are rated below
investment grade (rated below Baa (Moody's) or BBB (S&P)) are de-
scribed as "speculative" both by Moody's and S&P. Such securities
are sometimes referred to as "junk bonds," and may be subject to
greater market fluctuations, less liquidity and greater risk of
loss of income or principal, including a greater possibility of
default or bankruptcy of the issuer of such securities, than are
more highly rated debt securities. Moody's also describes securi-
ties rated Baa as having speculative characteristics. The Advisor
seeks to minimize these risks through diversification, in-depth
credit analysis and attention to current developments in interest
rates and market conditions. See "Appendix B--Description of Secu-
rities Ratings." Investments in high yield securities are dis-
cussed separately below under "High Yield Securities ("Junk
Bonds")."
VARIABLE Variable and floating rate securities provide for a periodic ad-
AND justment in the interest rate paid on the obligations. The terms
FLOATING of such obligations must provide that interest rates are adjusted
RATE periodically based upon an interest rate adjustment index as pro-
SECURITIES vided in the respective obligations. The adjustment intervals may
be regular, and range from daily up to annually, or may be event
based, such as based on a change in the prime rate.
The Fund may invest in floating rate debt instruments ("float-
ers"). The interest rate on a floater is a variable rate which is
tied to another interest rate, such as a money-market index or
Treasury bill rate. The interest rate on a floater resets periodi-
cally, typically every six months. While, because of the interest
rate reset feature, floaters provide the Fund with a certain de-
gree of protection against rises in interest rates, the Fund will
participate in any declines in interest rates as well.
The Fund may also invest in inverse floating rate debt instru-
ments ("inverse floaters"). The interest rate on an inverse
floater resets in the opposite direction from the market rate of
interest to which the inverse floater is indexed. An inverse
floating rate security may exhibit greater price volatility than a
fixed rate obligation of similar credit quality. The Fund has
adopted a policy under which the Fund will invest no more than 5%
of its net assets in any combination of inverse floater, interest
only ("IO"), or principal only ("PO") securities. See "Mortgage-
Related and Other Asset-Backed Securities" for a discussion of IOs
and POs.
INFLATION- Inflation-indexed bonds are fixed income securities whose princi-
INDEXED pal value is periodically adjusted according to the rate of infla-
BONDS tion. The interest rate on these bonds is generally fixed at issu-
ance at a rate lower than typical bonds. Over the life of an in-
flation-indexed bond, however, interest will be paid based on a
principal value which is adjusted for inflation.
Inflation-indexed securities issued by the U.S. Treasury will
initially have maturities of ten years, although it is anticipated
that securities with other maturities will be issued in the fu-
ture. The securities will pay interest on a semi-annual basis,
equal to a fixed percentage of the inflation-adjusted principal
amount. For example, if an investor purchased an inflation-indexed
bond with a par value of $1,000 and a 3% real rate of return cou-
pon (payable 1.5% semi-annually), and inflation over the first six
months were 1%, the mid-year par value of the bond would be $1,010
and the first semi-annual interest payment would be $15.15 ($1,010
times 1.5%). If inflation during the second half of the year
reached 3%, the end-of-year par value of the bond would be $1,030
and the second semi-annual interest payment would be $15.45
($1,030 times 1.5%).
If the periodic adjustment rate measuring inflation falls, the
principal value of inflation-indexed bonds will be adjusted down-
ward, and consequently the interest payable on these securities
(calculated with respect to a smaller principal amount) will be
reduced. Repayment of the original bond principal upon maturity
(as adjusted for inflation) is guaranteed in the case of U.S.
Treasury inflation-indexed bonds, even during a period of defla-
tion. However, the current market value of the bonds is not guar-
anteed, and will fluctuate. The Fund may also invest in other in-
flation related bonds which may or may not provide a similar guar-
antee. If such a guarantee of principal is not provided, the ad-
justed principal value of the bond repaid at maturity may be less
than the original principal.
The value of inflation-indexed bonds is expected to change in
response to changes in real interest rates. Real interest rates in
turn are tied to the relationship between nominal interest rates
and the rate of inflation. Therefore, if
May 1, 1997 Prospectus
7
<PAGE>
inflation were to rise at a faster rate than nominal interest
rates, real interest rates might decline, leading to an increase
in value of inflation-indexed bonds. In contrast, if nominal in-
terest rates increased at a faster rate than inflation, real in-
terest rates might rise, leading to a decrease in value of infla-
tion-indexed bonds.
While these securities are expected to be protected from long-
term inflationary trends, short-term increases in inflation may
lead to a decline in value. If interest rates rise due to reasons
other than inflation (for example, due to changes in currency ex-
change rates), investors in these securities may not be protected
to the extent that the increase is not reflected in the bond's in-
flation measure.
The U.S. Treasury has only recently begun issuing inflation-in-
dexed bonds. As such, there is no trading history of these securi-
ties, and there can be no assurance that a liquid market in these
instruments will develop, although one is expected. Lack of a liq-
uid market may impose the risk of higher transaction costs and the
possibility the Fund may be forced to liquidate positions when it
would not be advantageous to do so. There also can be no assurance
that the U.S. Treasury will issue any particular amount of infla-
tion-indexed bonds. Certain foreign governments, such as the
United Kingdom, Canada and Australia, have a longer history of is-
suing inflation-indexed bonds, and there may be a more liquid mar-
ket in certain of these countries for these securities.
The periodic adjustment of U.S. inflation-indexed bonds is tied
to the Consumer Price Index for Urban Consumers ("CPI-U"), which
is calculated monthly by the U.S. Bureau of Labor Statistics. The
CPI-U is a measurement of changes in the cost of living, made up
of components such as housing, food, transportation and energy.
Inflation-indexed bonds issued by a foreign government are gener-
ally adjusted to reflect a comparable inflation index, calculated
by that government. There can be no assurance that the CPI-U or
any foreign inflation index will accurately measure the real rate
of inflation in the prices of goods and services. Moreover, there
can be no assurance that the rate of inflation in a foreign coun-
try will be correlated to the rate of inflation in the United
States.
MORTGAGE- The Fund may invest all of its assets in mortgage- or other asset-
RELATED AND backed securities. The value of some mortgage- or asset-backed se-
OTHER curities in which the Fund invests may be particularly sensitive
ASSET- to changes in prevailing interest rates, and, like the other in-
BACKED vestments of the Fund, the ability of the Fund to successfully
SECURITIES utilize these instruments may depend in part upon the ability of
the Advisor to forecast interest rates and other economic factors
correctly.
MORTGAGE-PASS-THROUGH SECURITIES are securities representing in-
terests in "pools" of mortgage loans secured by residential or
commercial real property in which payments of both interest and
principal on the securities are generally made monthly, in effect
"passing through" monthly payments made by the individual borrow-
ers on the mortgage loans which underlie the securities (net of
fees paid to the issuer or guarantor of the securities). Early re-
payment of principal on some mortgage-related securities (arising
from prepayments of principal due to sale of the underlying prop-
erty, refinancing, or foreclosure, net of fees and costs which may
be incurred) may expose the Fund to a lower rate of return upon
reinvestment of principal. Also, if a security subject to prepay-
ment has been purchased at a premium, the value of the premium
would be lost in the event of prepayment. Like other fixed income
securities, when interest rates rise, the value of a mortgage-re-
lated security generally will decline; however, when interest
rates are declining, the value of mortgage-related securities with
prepayment features may not increase as much as other fixed income
securities. The rate of prepayments on underlying mortgages will
affect the price and volatility of a mortgage-related security,
and may have the effect of shortening or extending the effective
maturity of the security beyond what was anticipated at the time
of purchase. To the extent that unanticipated rates of prepayment
on underlying mortgages increase the effective maturity of a mort-
gage-related security, the volatility of such security can be ex-
pected to increase.
Payment of principal and interest on some mortgage pass-through
securities (but not the market value of the securities themselves)
may be guaranteed by the full faith and credit of the U.S. Govern-
ment (in the case of securities guaranteed by GNMA); or guaranteed
by agencies or instrumentalities of the U.S. Government (in the
case of securities guaranteed by FNMA or the Federal Home Loan
Mortgage Corporation ("FHLMC"), which are supported only by the
discretionary authority of the U.S. Government to purchase the
agency's obligations). Mortgage-related securities created by non-
governmental issuers (such as commercial banks, savings and loan
institutions, private mortgage
PIMCO Funds: Pacific Investment Management Series
8
<PAGE>
insurance companies, mortgage bankers and other secondary market
issuers) may be supported by various forms of insurance or guaran-
tees, including individual loan, title, pool and hazard insurance
and letters of credit, which may be issued by governmental enti-
ties, private insurers or the mortgage poolers.
COLLATERALIZED MORTGAGE OBLIGATIONS ("CMOs") are hybrid mortgage-
related instruments. Similar to a bond, interest and pre-paid
principal on a CMO are paid, in most cases, semi-annually. CMOs
may be collateralized by whole mortgage loans but are more typi-
cally collateralized by portfolios of mortgage pass-through secu-
rities guaranteed by GNMA, FHLMC, or FNMA. CMOs are structured
into multiple classes, with each class bearing a different stated
maturity. Monthly payments of principal, including prepayments,
are first returned to investors holding the shortest maturity
class; investors holding the longer maturity classes receive prin-
cipal only after the first class has been retired. CMOs that are
issued or guaranteed by the U.S. Government or by any of its agen-
cies or instrumentalities will be considered U.S. Government secu-
rities by the Fund, while other CMOs, even if collateralized by
U.S. Government securities, will have the same status as other
privately issued securities for purposes of applying the Fund's
diversification tests.
COMMERCIAL MORTGAGE-BACKED SECURITIES include securities that re-
flect an interest in, and are secured by, mortgage loans on com-
mercial real property. The market for commercial mortgage-backed
securities developed more recently and in terms of total outstand-
ing principal amount of issues is relatively small compared to the
market for residential single-family mortgage-backed securities.
Many of the risks of investing in commercial mortgage-backed secu-
rities reflect the risks of investing in the real estate securing
the underlying mortgage loans. These risks reflect the effects of
local and other economic conditions on real estate markets, the
ability of tenants to make loan payments, and the ability of a
property to attract and retain tenants. Commercial mortgage-backed
securities may be less liquid and exhibit greater price volatility
than other types of mortgage-related or asset-backed securities.
MORTGAGE-RELATED SECURITIES include securities other than those
described above that directly or indirectly represent a participa-
tion in, or are secured by and payable from, mortgage loans on
real property, such as CMO residuals or stripped mortgage-backed
securities ("SMBS"), and may be structured in classes with rights
to receive varying proportions of principal and interest.
A common type of SMBS will have one class receiving some of the
interest and most of the principal from the mortgage assets, while
the other class will receive most of the interest and the remain-
der of the principal. In the most extreme case, one class will re-
ceive all of the interest (the interest-only, or "IO" class),
while the other class will receive all of the principal (the prin-
cipal-only, or "PO" class). The yield to maturity on an IO class
is extremely sensitive to the rate of principal payments (includ-
ing prepayments) on the related underlying mortgage assets, and a
rapid rate of principal payments may have a material adverse ef-
fect on the Fund's yield to maturity from these securities. The
Fund has adopted a policy under which the Fund will invest no more
than 5% of its net assets in any combination of IO, PO, or inverse
floater securities. The Fund may invest in other asset-backed se-
curities that have been offered to investors. For a discussion of
the characteristics of some of these instruments, see the State-
ment of Additional Information.
REPURCHASE For the purpose of achieving income, the Fund may enter into re-
AGREEMENTS purchase agreements, which entail the purchase of a portfolio-eli-
gible security from a bank or broker-dealer that agrees to repur-
chase the security at the Fund's cost plus interest within a spec-
ified time (normally one day). If the party agreeing to repurchase
should default, as a result of bankruptcy or otherwise, the Fund
will seek to sell the securities which it holds, which action
could involve procedural costs or delays in addition to a loss on
the securities if their value should fall below their repurchase
price. The Fund will invest no more than 15% of its net assets
(taken at current market value) in repurchase agreements maturing
in more than seven days.
May 1, 1997 Prospectus
9
<PAGE>
REVERSE A reverse repurchase agreement may for some purposes be considered
REPURCHASE borrowing that involves the sale of a security by the Fund and its
AGREEMENTS, agreement to repurchase the instrument at a specified time and
DOLLAR price. The Fund will maintain a segregated account consisting of
ROLLS, AND assets determined to be liquid by the Advisor in accordance with
OTHER procedures established by the Board of Trustees to cover its obli-
BORROWINGS gations under reverse repurchase agreements.
The Fund may enter into dollar rolls, in which the Fund sells
mortgage-backed or other securities for delivery in the current
month and simultaneously contracts to purchase substantially simi-
lar securities on a specified future date. In the case of dollar
rolls involving mortgage-backed securities, the mortgage-backed
securities that are purchased will be of the same type and will
have the same interest rate as those sold, but will be supported
by different pools of mortgages. The Fund forgoes principal and
interest paid during the roll period on the securities sold in a
dollar roll, but the Fund is compensated by the difference between
the current sales price and the lower price for the future pur-
chase as well as by any interest earned on the proceeds of the se-
curities sold. The Fund also could be compensated through the re-
ceipt of fee income equivalent to a lower forward price. The Fund
will maintain a segregated account consisting of assets determined
to be liquid by the Advisor in accordance with procedures estab-
lished by the Board of Trustees to cover its obligations under
dollar rolls.
Dollar rolls and reverse repurchase agreements will be subject
to the Fund's limitations on borrowings, which will restrict the
aggregate of such transactions (plus any other borrowings) to 33
1/3% of the Fund's total assets. Apart from transactions involving
reverse repurchase agreements and dollar rolls, the Fund will not
borrow money, except for temporary administrative purposes.
LOANS OF For the purpose of achieving income, the Fund may lend its portfo-
PORTFOLIO lio securities to brokers, dealers, and other financial institu-
SECURITIES tions, provided: (i) the loan is secured continuously by collat-
eral consisting of U.S. Government securities, cash or cash equiv-
alents (negotiable certificates of deposit, bankers' acceptances
or letters of credit) maintained on a daily mark-to-market basis
in an amount at least equal to the current market value of the se-
curities loaned; (ii) the Fund may at any time call the loan and
obtain the return of the securities loaned; (iii) the Fund will
receive any interest or dividends paid on the loaned securities;
and (iv) the aggregate market value of securities loaned will not
at any time exceed 33 1/3% of the total assets of the Fund. The
Fund's performance will continue to reflect changes in the value
of the securities loaned and will also reflect the receipt of ei-
ther interest, through investment of cash collateral by the Fund
in permissible investments, or a fee, if the collateral is U.S.
Government securities. Securities lending involves the risk of
loss of rights in the collateral or delay in recovery of the col-
lateral should the borrower fail to return the security loaned or
become insolvent. The Fund may pay lending fees to the party ar-
ranging the loan.
WHEN- The Fund may purchase or sell securities on a when-issued, delayed
ISSUED, delivery, or forward commitment basis. These transactions involve
DELAYED a commitment by the Fund to purchase or sell securities for a pre-
DELIVERY determined price or yield, with payment and delivery taking place
AND FORWARD more than seven days in the future, or after a period longer than
COMMITMENT the customary settlement period for that type of security. When
TRANSACTIONSsuch purchases are outstanding, the Fund will set aside and main-
tain until the settlement date in a segregated account, assets de-
termined to be liquid by the Advisor in accordance with procedures
established by the Board of Trustees, in an amount sufficient to
meet the purchase price. Typically, no income accrues on securi-
ties the Fund has committed to purchase prior to the time delivery
of the securities is made, although the Fund may earn income on
securities it has deposited in a segregated account. When purchas-
ing a security on a when-issued, delayed delivery, or forward com-
mitment basis, the Fund assumes the rights and risks of ownership
of the security, including the risk of price and yield fluctua-
tions, and takes such fluctuations into account when determining
its net asset value. Because the Fund is not required to pay for
the security until the delivery date, these risks are in addition
to the risks associated with the Fund's other investments. If the
Fund remains substantially fully invested at a time when when-is-
sued, delayed delivery, or forward commitment purchases are out-
standing, the purchases may result in a form of leverage. When the
Fund has sold a security on a when-issued, delayed delivery, or
forward commitment basis, the Fund does not participate in future
gains or losses with respect to the security. If the other party
to a
10
PIMCO Funds: Pacific Investment Management Series
<PAGE>
transaction fails to deliver or pay for the securities, the Fund
could miss a favorable price or yield opportunity or could suffer
a loss. The Fund may dispose of or renegotiate a transaction after
it is entered into, and may sell when-issued or forward commitment
securities before they are delivered, which may result in a capi-
tal gain or loss. There is no percentage limitation on the extent
to which the Fund may purchase or sell securities on a when-is-
sued, delayed delivery, or forward commitment basis.
SHORT SALES The Fund may from time to time effect short sales as part of its
overall portfolio management strategies, including the use of de-
rivative instruments, or to offset potential declines in value of
long positions in similar securities as those sold short. A short
sale (other than a short sale against the box) is a transaction in
which the Fund sells a security it does not own at the time of the
sale in anticipation that the market price of that security will
decline. To the extent that the Fund engages in short sales, it
must (except in the case of short sales "against the box") main-
tain asset coverage in the form of assets determined to be liquid
by the Advisor in accordance with procedures established by the
Board of Trustees, in a segregated account, or otherwise cover its
position in a permissible manner. A short sale is "against the
box" to the extent that the Fund contemporaneously owns, or has
the right to obtain at no added cost, securities identical to
those sold short.
FOREIGN The Fund may invest directly in fixed income securities of non-
SECURITIES U.S. issuers. The Fund will limit its foreign investments to secu-
rities of issuers based in developed countries (including Newly
Industrialized Countries ("NICs"), such as Taiwan, South Korea and
Mexico). The Fund limits its investments in securities of issuers
based in NICs to 10% of its assets. For purposes of this restric-
tion, the term "NIC" is not meant to include a defined set of
countries selected according to specific criteria, but rather is a
broadly defined term which includes countries which are considered
by the Advisor to have sound economies and the potential for posi-
tive growth. In determining which countries will be considered
NICs, the Advisor will not be limited by any determination made by
any other investment adviser, institution, government or suprana-
tional agency regarding which countries are considered to be de-
veloping or emerging markets by such entities. As such, the Fund
may invest in securities issued in countries which may be consid-
ered by other advisers or analysts to be developing or emerging
markets.
Investing in the securities of issuers in any foreign country
involves special risks and considerations not typically associated
with investing in U.S. companies. Shareholders should consider
carefully the substantial risks involved in investing in securi-
ties issued by companies and governments of foreign nations. These
risks include: differences in accounting, auditing and financial
reporting standards; generally higher commission rates on foreign
portfolio transactions; the possibility of nationalization, expro-
priation or confiscatory taxation; adverse changes in investment
or exchange control regulations (which may include suspension of
the ability to transfer currency from a country); and political
instability which could affect U.S. investments in foreign coun-
tries. Additionally, foreign securities and dividends and interest
payable on those securities may be subject to foreign taxes, in-
cluding taxes withheld from payments on those securities. Foreign
securities often trade with less frequency and volume than domes-
tic securities and therefore may exhibit greater price volatility.
Additional costs associated with an investment in foreign securi-
ties may include higher custodial fees than apply to domestic cus-
todial arrangements and transaction costs of foreign currency con-
versions. Changes in foreign exchange rates also will affect the
value of securities denominated or quoted in currencies other than
the U.S. dollar.
The Fund may invest in Brady Bonds, which are securities cre-
ated through the exchange of existing commercial bank loans to
sovereign entities for new obligations in connection with debt
restructurings under a debt restructuring plan introduced by for-
mer U.S. Secretary of the Treasury, Nicholas F. Brady. Brady Bonds
have been issued only recently, and for that reason do not have a
long payment history. Brady Bonds may be collateralized or
uncollateralized, are issued in various currencies (but primarily
the U.S. dollar), and are actively traded in the over-the-counter
secondary market. Brady Bonds are not considered to be U.S. Gov-
ernment securities. In light of the residual risk of Brady Bonds
May 1, 1997 Prospectus
11
<PAGE>
and, among other factors, the history of defaults with respect to
commercial bank loans by public and private entities in countries
issuing Brady Bonds, investments in Brady Bonds may be viewed as
speculative. There can be no assurance that Brady Bonds acquired
by the Fund will not be subject to restructuring arrangements or
to requests for new credit, which may cause the Fund to suffer a
loss of interest or principal on any of its holdings. For further
information, see the Statement of Additional Information.
FOREIGN Foreign currency exchange rates may fluctuate significantly over
CURRENCY short periods of time. They generally are determined by the forces
TRANSACTIONSof supply and demand in the foreign exchange markets and the rela-
tive merits of investments in different countries, actual or per-
ceived changes in interest rates and other complex factors, as
seen from an international perspective. Currency exchange rates
also can be affected unpredictably by intervention (or the failure
to intervene) by U.S. or foreign governments or central banks, by
currency controls or political developments in the U.S. or abroad.
Currencies in which the Fund's assets are denominated may be de-
valued against the U.S. dollar, resulting in a loss to the Fund.
The Fund may buy and sell foreign currencies on a spot and for-
ward basis to reduce the risks of adverse changes in foreign ex-
change rates. A forward foreign currency exchange contract in-
volves an obligation to purchase or sell a specific currency at a
future date, which may be any fixed number of days from the date
of the contract agreed upon by the parties, at a price set at the
time of the contract. By entering into a forward foreign currency
exchange contract, the Fund "locks in" the exchange rate between
the currency it will deliver and the currency it will receive for
the duration of the contract. As a result, the Fund reduces its
exposure to changes in the value of the currency it will deliver
and increases its exposure to changes in the value of the currency
it will exchange into. The effect on the value of the Fund is sim-
ilar to selling securities denominated in one currency and pur-
chasing securities denominated in another. Contracts to sell for-
eign currency would limit any potential gain which might be real-
ized by the Fund if the value of the hedged currency increases.
The Fund may enter into these 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. The Fund also may enter into these contracts for pur-
poses of increasing exposure to a foreign currency or to shift ex-
posure to foreign currency fluctuations from one country to anoth-
er. The Fund may use one currency (or a basket of currencies) to
hedge against adverse changes in the value of another currency (or
a basket of currencies) when exchange rates between the two cur-
rencies are positively correlated. The Fund will segregate assets
determined to be liquid by the Advisor in accordance with proce-
dures established by the Board of Trustees, in a segregated ac-
count to cover its obligations under forward foreign currency ex-
change contracts entered into for non-hedging purposes.
The Fund may invest in options on foreign currencies and for-
eign currency futures and options thereon. The Fund also may in-
vest in foreign currency exchange-related securities, such as for-
eign currency warrants and other instruments whose return is
linked to foreign currency exchange rates. The Fund will use these
techniques to hedge at least 75% of its exposure to foreign cur-
rency. For a description of these instruments, see "Derivative In-
struments" below and the Statement of Additional Information.
HIGH YIELD The Fund may invest up to 10% of its assets in fixed income secu-
SECURITIES rities rated lower than Baa by Moody's or lower than BBB by S&P
("JUNK but rated at least B by Moody's or S&P (or, if not rated, of com-
BONDS") parable quality). Securities rated lower than Baa by Moody's or
lower than BBB by S&P are sometimes referred to as "high yield" or
"junk" bonds. Securities rated Baa are considered by Moody's to
have some speculative characteristics. Investors should consider
the following risks associated with high yield securities before
investing in the Fund.
Investing in high yield securities involves special risks in
addition to the risks associated with investments in higher rated
fixed income securities. High yield securities may be regarded as
predominately speculative with respect to the issuer's continuing
ability to meet principal and interest payments. Analysis of the
creditworthiness of issuers of high yield securities may be more
complex than for issuers of higher quality debt securities, and
the ability of the Fund to achieve its investment objective may,
to the extent of its investments in high yield securities, be more
dependent upon such creditworthiness analysis than would be the
case if the Fund were investing in higher quality securities.
12
PIMCO Funds: Pacific Investment Management Series
<PAGE>
High yield securities may be more susceptible to real or per-
ceived adverse economic and competitive industry conditions than
higher grade securities. The prices of high yield securities have
been found to be less sensitive to interest rate changes than more
highly rated investments, but more sensitive to adverse economic
downturns or individual corporate developments. A projection of an
economic downturn or of a period of rising interest rates, for ex-
ample, could cause a decline in high yield security prices because
the advent of a recession could lessen the ability of a highly
leveraged company to make principal and interest payments on its
debt securities. If the issuer of high yield securities defaults,
the Fund may incur additional expenses to seek recovery. In the
case of high yield securities structured as zero coupon or pay-
ment-in-kind securities, the market prices of such securities are
affected to a greater extent by interest rate changes, and there-
fore tend to be more volatile than securities which pay interest
periodically and in cash.
The secondary markets on which high yield securities are traded
may be less liquid than the market for higher grade securities.
Less liquidity in the secondary trading markets could adversely
affect and cause large fluctuations in the daily net asset value
of the Fund's shares. Adverse publicity and investor perceptions,
whether or not based on fundamental analysis, may decrease the
values and liquidity of high yield securities, especially in a
thinly traded market.
The use of credit ratings as the sole method of evaluating high
yield securities can involve certain risks. For example, credit
ratings evaluate the safety of principal and interest payments,
not the market value risk of high yield securities. Also, credit
rating agencies may fail to change credit ratings in a timely
fashion to reflect events since the security was last rated. The
Advisor does not rely solely on credit ratings when selecting se-
curities for the Fund, and develops its own independent analysis
of issuer credit quality. If a credit rating agency changes the
rating of a portfolio security held by the Fund, the Fund may re-
tain the portfolio security if the Advisor deems it in the best
interest of shareholders.
During the year ended March 31, 1996, based upon the dollar-
weighted average ratings of the Fund's portfolio holdings at the
end of each month in the Fund's fiscal year, the Fund had the fol-
lowing percentages of its net assets invested in securities rated
in the categories indicated as rated by Moody's (or, if unrated,
determined by the Advisor to be of comparable quality). See "Ap-
pendix B--Description of Securities Ratings," for further informa-
tion.
FIXED INCOME SECURITIES RATINGS
<TABLE>
<CAPTION>
BELOW
PRIME 1 AAA AA A PRIME 1 BAA BA B CAA
------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
9.80% 62.57% 6.12% 7.35% 0.00% 6.92% 6.23% 2.00% 0.01%
</TABLE>
These figures are intended solely to provide disclosure about
the Fund's asset composition during its most recent fiscal year.
The asset composition after this time may or may not be approxi-
mately the same as represented by such figures. In addition, the
categories reflect ratings by Moody's, and ratings assigned by S&P
may not be consistent with ratings assigned by Moody's or other
credit ratings services, and the Advisor may not necessarily agree
with a rating assigned by any credit rating agency.
DERIVATIVE The Fund may purchase and write call and put options on securi-
INSTRUMENTS ties, securities indexes and foreign currencies, and enter into
futures contracts and use options on futures contracts as further
described below. The Fund also may enter into swap agreements with
respect to foreign currencies, interest rates, and securities in-
dexes. The Fund may use these techniques to hedge against changes
in interest rates, foreign currency exchange rates or securities
prices or as part of its overall investment strategies. The Fund
may also purchase and sell options relating to foreign currencies
for purposes of increasing exposure to a foreign currency or to
shift exposure to foreign currency fluctuations from one country
to another. The Fund will maintain a segregated account consisting
of assets determined to be liquid by the Advisor in accordance
with procedures established by the Board of Trustees (or, as per-
mitted by applicable regulation, enter into certain offsetting po-
sitions) to cover its obligations under options, futures, and
swaps to avoid leveraging of the Fund.
May 1, 1997 Prospectus
13
<PAGE>
The Fund considers derivative instruments to consist of securi-
ties or other instruments whose value is derived from or related
to the value of some other instrument or asset, and not to include
those securities whose payment of principal and/or interest de-
pends upon cash flows from underlying assets, such as mortgage-re-
lated or asset-backed securities. The Fund may invest all of its
assets in derivative instruments.The value of some derivative in-
struments in which the Fund invests may be particularly sensitive
to changes in prevailing interest rates, and, like the other in-
vestments of the Fund, the ability of the Fund to successfully
utilize these instruments may depend in part upon the ability of
the Advisor to forecast interest rates and other economic factors
correctly. If the Advisor incorrectly forecasts such factors and
has taken positions in derivative instruments contrary to prevail-
ing market trends, the Fund could be exposed to the risk of loss.
The Fund might not employ any of the strategies described be-
low, and no assurance can be given that any strategy used will
succeed. If the Advisor incorrectly forecasts interest rates, mar-
ket values or other economic factors in utilizing a derivatives
strategy for the Fund, the Fund might have been in a better posi-
tion if it had not entered into the transaction at all. The use of
these strategies involves certain special risks, including a pos-
sible imperfect correlation, or even no correlation, between price
movements of derivative instruments and price movements of related
investments. While some strategies involving derivative instru-
ments can reduce the risk of loss, they can also reduce the oppor-
tunity for gain or even result in losses by offsetting favorable
price movements in related investments, or due to the possible in-
ability of the Fund to purchase or sell a portfolio security at a
time that otherwise would be favorable for it to do so, or the
possible need for the Fund to sell a portfolio security at a dis-
advantageous time, because the Fund is required to maintain asset
coverage or offsetting positions in connection with transactions
in derivative instruments, and the possible inability of the Fund
to close out or to liquidate its derivatives positions.
OPTIONS ON SECURITIES, SECURITIES INDEXES, AND CURRENCIES The Fund
may purchase put options on securities and indexes. One purpose of
purchasing put options is to protect holdings in an underlying or
related security against a substantial decline in market value.
The Fund may also purchase call options on securities and indexes.
One purpose of purchasing call options is to protect against sub-
stantial increases in prices of securities the Fund intends to
purchase pending its ability to invest in such securities in an
orderly manner. An option on a security (or index) is a contract
that gives the holder of the option, in return for a premium, the
right to buy from (in the case of a call) or sell to (in the case
of a put) the writer of the option the security underlying the op-
tion (or the cash value of the index) at a specified exercise
price at any time during the term of the option. The writer of an
option on a security has the obligation upon exercise of the op-
tion to deliver the underlying security upon payment of the exer-
cise price or to pay the exercise price upon delivery of the un-
derlying security. Upon exercise, the writer of an option on an
index is obligated to pay the difference between the cash value of
the index and the exercise price multiplied by the specified mul-
tiplier for the index option. An index is designed to reflect
specified facets of a particular financial or securities market, a
specific group of financial instruments or securities, or certain
economic indicators.
The Fund may sell put or call options it has previously pur-
chased, which could result in a net gain or loss depending on
whether the amount realized on the sale is more or less than the
premium and other transaction costs paid on the put or call option
which is sold. The Fund may write a call or put option only if the
option is "covered" by the Fund holding a position in the under-
lying securities or by other means which would permit immediate
satisfaction of the Fund's obligation as writer of the option.
Prior to exercise or expiration, an option may be closed out by an
offsetting purchase or sale of an option of the same series.
The Fund may write covered straddles consisting of a combina-
tion of a call and a put written on the same underlying security.
A straddle will be covered when sufficient assets are deposited to
meet the Fund's immediate obligations. The Fund may use the same
liquid assets to cover both the call and put options where the ex-
ercise price of the call and put are the same, or the exercise
price of the call is higher than that of the put. In such cases,
the Fund will also segregate liquid assets equivalent to the
amount, if any, by which the put is "in the money."
14
PIMCO Funds: Pacific Investment Management Series
<PAGE>
The purchase and writing of options involves certain risks.
During the option period, the covered call writer has, in return
for the premium on the option, given up the opportunity to profit
from a price increase in the underlying security above the exer-
cise price, but, as long as its obligation as a writer continues,
has retained the risk of loss should the price of the underlying
security decline. The writer of an option has no control over the
time when it may be required to fulfill its obligation as a writer
of the option. Once an option writer has received an exercise no-
tice, it cannot effect a closing purchase transaction in order to
terminate its obligation under the option and must deliver the un-
derlying security at the exercise price. If a put or call option
purchased by the Fund is not sold when it has remaining value, and
if the market price of the underlying security remains equal to or
greater than the exercise price (in the case of a put), or remains
less than or equal to the exercise price (in the case of a call),
the Fund will lose its entire investment in the option. Also,
where a put or call option on a particular security is purchased
to hedge against price movements in a related security, the price
of the put or call option may move more or less than the price of
the related security. There can be no assurance that a liquid mar-
ket will exist when the Fund seeks to close out an option posi-
tion. Furthermore, if trading restrictions or suspensions are im-
posed on the options markets, the Fund may be unable to close out
a position.
The Fund may buy or sell put and call options on foreign cur-
rencies. Currency options traded on U.S. or other exchanges may be
subject to position limits which may limit the ability of the Fund
to reduce foreign currency risk using such options. Over-the-
counter options differ from traded options in that they are two-
party contracts, with price and other terms negotiated between
buyer and seller, and generally do not have as much market liquid-
ity as exchange-traded options. The Fund may be required to treat
as illiquid over-the-counter options purchased and securities be-
ing used to cover certain written over-the-counter options.
SWAP AGREEMENTS The Fund may enter into interest rate, index, eq-
uity and currency exchange rate swap agreements. These transac-
tions would be entered into in an attempt to obtain a particular
return when it is considered desirable to do so, possibly at a
lower cost to the Fund than if the Fund had invested directly in
the asset that yielded the desired return. Swap agreements are
two-party contracts entered into primarily by institutional in-
vestors for periods ranging from a few weeks to more than one
year. In a standard swap transaction, two parties agree to ex-
change the returns (or differentials in rates of return) earned or
realized on particular predetermined investments or instruments,
which may be adjusted for an interest factor. The gross returns to
be exchanged or "swapped" between the parties are generally calcu-
lated with respect to a "notional amount," i.e., the return on or
increase in value of a particular dollar amount invested at a par-
ticular interest rate, in a particular foreign currency, or in a
"basket" of securities representing a particular index. Forms of
swap agreements include interest rate caps, under which, in return
for a premium, one party agrees to make payments to the other to
the extent that interest rates exceed a specified rate, or "cap";
interest rate floors, under which, in return for a premium, one
party agrees to make payments to the other to the extent that in-
terest rates fall below a specified level, or "floor"; and inter-
est rate collars, under which a party sells a cap and purchases a
floor or vice versa in an attempt to protect itself against inter-
est rate movements exceeding given minimum or maximum levels.
Most swap agreements entered into by the Fund calculate the ob-
ligations of the parties to the agreement on a "net basis." Conse-
quently, the Fund's current obligations (or rights) under a swap
agreement will generally be equal only to the net amount to be
paid or received under the agreement based on the relative values
of the positions held by each party to the agreement (the "net
amount"). The Fund's current obligations under a swap agreement
will be accrued daily (offset against amounts owed to the Fund),
and any accrued but unpaid net amounts owed to a swap counterparty
will be covered by the maintenance of a segregated account con-
sisting of assets determined to be liquid by the Advisor in accor-
dance with procedures established by the Board of Trustees, to
limit any potential leveraging of the Fund's portfolio. Obliga-
tions under swap agreements so covered will not be construed to be
"senior securities" for purposes of the Fund's investment restric-
tion concerning senior securities. The Fund will not enter into a
swap agreement with any
May 1, 1997 Prospectus
15
<PAGE>
single party if the net amount owed or to be received under exist-
ing contracts with that party would exceed 5% of the Fund's as-
sets.
Whether the Fund's use of swap agreements will be successful in
furthering its investment objective will depend on the Advisor's
ability to predict correctly whether certain types of investments
are likely to produce greater returns than other investments. Be-
cause they are two-party contracts and because they may have terms
of greater than seven days, swap agreements may be considered to
be illiquid investments. Moreover, the Fund bears the risk of loss
of the amount expected to be received under a swap agreement in
the event of the default or bankruptcy of a swap agreement
counterparty. The Fund will enter into swap agreements only with
counterparties that meet certain standards for creditworthiness
(generally, such counterparties would have to be eligible
counterparties under the terms of the Fund's repurchase agreement
guidelines). Certain restrictions imposed on the Fund by the In-
ternal Revenue Code may limit the Fund's ability to use swap
agreements. The swaps market is a relatively new market and is
largely unregulated. It is possible that developments in the swaps
market, including potential government regulation, could adversely
affect the Fund's ability to terminate existing swap agreements or
to realize amounts to be received under such agreements.
FUTURES CONTRACTS AND OPTIONS ON FUTURES CONTRACTS The Fund may
invest in interest rate futures contracts and options thereon
("futures options"), and to the extent it may invest in foreign
currency-denominated securities, may also invest in foreign cur-
rency futures contracts and options thereon.
There are several risks associated with the use of futures and
futures options for hedging purposes. There can be no guarantee
that there will be a correlation between price movements in the
hedging vehicle and in the portfolio securities being hedged. An
incorrect correlation could result in a loss on both the hedged
securities in the Fund and the hedging vehicle, so that the port-
folio return might have been greater had hedging not been attempt-
ed. There can be no assurance that a liquid market will exist at a
time when the Fund seeks to close out a futures contract or a
futures option position. Most futures exchanges and boards of
trade limit the amount of fluctuation permitted in futures con-
tract prices during a single day; once the daily limit has been
reached on a particular contract, no trades may be made that day
at a price beyond that limit. In addition, certain of these in-
struments are relatively new and without a significant trading
history. As a result, there is no assurance that an active second-
ary market will develop or continue to exist. Lack of a liquid
market for any reason may prevent the Fund from liquidating an un-
favorable position, and the Fund would remain obligated to meet
margin requirements until the position is closed.
The Fund may write covered straddles consisting of a call and a
put written on the same underlying futures contract. A straddle
will be covered when sufficient assets are deposited to meet the
Fund's immediate obligations. The Fund may use the same liquid as-
sets to cover both the call and put options where the exercise
price of the call and put are the same, or the exercise price of
the call is higher than that of the put. In such cases, the Fund
will also segregate liquid assets equivalent to the amount, if
any, by which the put is "in the money."
The Fund will only enter into futures contracts or futures op-
tions which are standardized and traded on a U.S. or foreign ex-
change or board of trade, or similar entity, or quoted on an auto-
mated quotation system. The Fund will use financial futures con-
tracts and related options only for "bona fide hedging" purposes,
as such term is defined in applicable regulations of the Commodity
Futures Trading Commission ("CFTC") or, with respect to positions
in financial futures and related options that do not qualify as
"bona fide hedging" positions, will enter such positions only to
the extent that aggregate initial margin deposits plus premiums
paid by it for open futures option positions, less the amount by
which any such positions are "in-the-money," would not exceed 5%
of the Fund's net assets.
PORTFOLIO The length of time the Fund has held a particular security is not
TURNOVER generally a consideration in investment decisions. The investment
policies of the Fund may lead to frequent changes in the Fund's
investments, particularly in periods of volatile market movements.
A change in the securities held by the Fund is known as "portfolio
turnover." High portfolio turnover (e.g., over 100%) involves cor-
respondingly greater expenses to the Fund, including brokerage
commissions or dealer mark-ups and other transaction costs on the
sale of securities and reinvestments in other
16
PIMCO Funds: Pacific Investment Management Series
<PAGE>
securities. Such sales may result in realization of taxable capi-
tal gains. See "Taxes." The portfolio turnover rate for the Fund
is incorporated by reference in the Statement of Additional Infor-
mation.
ILLIQUID The Fund may invest up to 15% of its net assets in illiquid secu-
SECURITIES rities. Certain illiquid securities may require pricing at fair
value as determined in good faith under the supervision of the
Board of Trustees. The Advisor may be subject to significant de-
lays in disposing of illiquid securities, and transactions in il-
liquid securities may entail registration expenses and other
transaction costs that are higher than transactions in liquid se-
curities. The term "illiquid securities" for this purpose means
securities that cannot be disposed of within seven days in the or-
dinary course of business at approximately the amount at which the
Fund has valued the securities. Illiquid securities are considered
to include, among other things, written over-the-counter options,
securities or other liquid assets being used as cover for such op-
tions, repurchase agreements with maturities in excess of seven
days, certain loan participation interests, fixed time deposits
which are not subject to prepayment or provide for withdrawal pen-
alties upon prepayment (other than overnight deposits), securities
that are subject to legal or contractual restrictions on resale
(such as privately placed debt securities) and other securities
whose disposition is restricted under the federal securities laws
(other than securities issued pursuant to Rule 144A under the Se-
curities Act of 1933 and certain commercial paper that Pacific In-
vestment Management has determined to be liquid under procedures
approved by the Board of Trustees).
Performance Information
From time to time the Trust may make available certain information
about the performance of the Class A shares of the Fund. Perfor-
mance information is compiled separately for each class of the
Fund's shares in accordance with the formulas described below.
From time to time, the yield and total return for each class of
shares of the Fund may be included in advertisements or reports to
shareholders or prospective investors. Quotations of yield for the
Fund or class will be based on the investment income per share (as
defined by the Securities and Exchange Commission) during a par-
ticular 30-day (or one-month) period (including dividends and in-
terest), less expenses accrued during the period ("net investment
income"), and will be computed by dividing net investment income
by the maximum public offering price per share on the last day of
the period.
The total return of Class A shares of the Fund may be included
in advertisements or other written material. When the Fund's total
return is advertised with respect to its Class A shares, it will
be calculated for the past year, the past five years, and since
the establishment of the Fund, as more fully described in the
Statement of Additional Information. Consistent with Securities
and Exchange Commission rules and informal guidance, for periods
prior to the initial offering date of a particular class, total
return presentations for the class will be based on the historical
performance of an older class of the Fund (the older class to be
used in each case is set forth in the Statement of Additional In-
formation) restated to reflect current sales charges (if any) of
the newer class, but not reflecting any higher operating expenses
(such as 12b-1 distribution and servicing fees and administrative
fee charges) associated with the newer class. All other things be-
ing equal, such higher expenses would have adversely affected
(i.e., reduced) total return for a newer class (i.e., if the newer
class had been issued since the inception of the Fund) by the
amount of such higher expenses, compounded over the relevant peri-
od. Total return for each class is measured by comparing the value
of an investment in the Fund at the beginning of the relevant pe-
riod (in the case of Class A shares, giving effect to the maximum
initial sales charge generally applicable to Class A shares) to
the redemption value of the investment in the Fund at the end of
the period (assuming immediate reinvestment of any dividends or
capital gains distributions at net asset value and giving effect
to the deduction of the maximum CDSC which would be payable). To-
tal return may be advertised using alternative methods that re-
flect all elements of return, but that may be adjusted to reflect
the cumulative impact of alternative fee and expense structures,
such as the currently effective advisory and administrative fees
for the Fund.
May 1, 1997 Prospectus
17
<PAGE>
Current distribution information may also be provided to the
Trust's shareholders in shareholder reports or other shareholder
communications, or in certain types of sales literature provided
to prospective investors. Current distribution information for a
particular class of the Fund will be based on distributions for a
specified period (i.e., total dividends from net investment in-
come), divided by the relevant class net asset value per share on
the last day of the period and annualized. The rate of current
distributions does not reflect deductions for unrealized losses
from transactions in derivative instruments such as options and
futures, which may reduce total return. Current distribution rates
differ from standardized yield rates in that they represent what a
class of the Fund has declared and paid to shareholders as of the
end of a specified period rather than the Fund's actual net in-
vestment income for that period.
Performance information for the Trust may also be compared to
various unmanaged indices, such as the Standard & Poor's 500 Com-
posite Stock Price Index, the Lehman Brothers Aggregate Bond In-
dex, the Merrill Lynch 1 to 3 Year Treasury Index, the Lehman In-
termediate and 20+ Year Treasury Blend Index, the Lehman BB Inter-
mediate Corporate Index, indexes prepared by Lipper Analytical
Services, the J.P. Morgan Global Index, the Salomon Brothers World
Government Bond Index-10 Non U.S.-Dollar Hedged and the J.P. Mor-
gan Government Bond Index Non U.S.-Dollar Hedged, and other enti-
ties or organizations which track the performance of investment
companies or investment advisers. Unmanaged indexes (i.e., other
than Lipper) generally do not reflect deductions for administra-
tive and management costs and expenses. The Advisor may also re-
port to shareholders or to the public in advertisements concerning
the performance of the Advisor as adviser to clients other than
the Trust, and on the comparative performance or standing of the
Advisor in relation to other money managers. Such comparative in-
formation may be compiled or provided by independent ratings serv-
ices or by news organizations. Any performance information,
whether related to the Fund or to the Advisor, should be consid-
ered in light of the Fund's investment objectives and policies,
characteristics and quality of the portfolio, and the market con-
ditions during the time period indicated, and should not be con-
sidered to be representative of what may be achieved in the fu-
ture. For a description of the methods used to determine yield and
total return for the Fund, see the Statement of Additional Infor-
mation.
Investment results of the Fund will fluctuate over time, and
any presentation of the Fund's total return or yield for any prior
period should not be considered as a representation of what an in-
vestor's total return or yield may be in any future period.
How to Buy Shares
Class A shares of the Fund of the Trust are continuously offered
through the Trust's principal underwriter, PIMCO Funds Distribu-
tion Company (the "Distributor"). Class A shares of the Fund are
available as an investment option in retirement or savings plans.
The administrator of such a plan or a prospective participant's
employee benefits office can provide detailed information on how
to participate in such a plan and how to elect the Fund as an in-
vestment option.
A participant may be permitted to elect different investment
options, alter the amounts contributed to the participant's plan,
or change how contributions are allocated among investment options
in accordance with the plan's specific provisions. A participant
should consult the plan administrator or the participant's em-
ployee benefits office for more details.
Questions about the Fund should be directed to the Distributor
at 800-426-0107. Questions about a participant's plan account
should be directed to the plan administrator or the organization
that provides recordkeeping services for the plan.
All contributions received by the Distributor prior to the
close of regular trading (normally 4:00 p.m. Eastern time) on the
New York Stock Exchange (the "Exchange"), on a regular business
day, are processed at that day's offering price, which will be net
asset value next determined after acceptance of a contribution.
However, contributions received by the Distributor after the of-
fering price is determined that day will receive such offering
price if the contributions were received by the plan administrator
prior to such determination and were transmitted to and received
by the Distributor
18
PIMCO Funds: Pacific Investment Management Series
<PAGE>
prior to 10:00 a.m. Eastern time on the next business day. Contri-
butions received on other than a regular business day will be exe-
cuted on the next succeeding regular business day. The Distribu-
tor, in its sole discretion, may accept or reject any order for
purchase of Fund shares. The sale of shares will be suspended dur-
ing any period in which the Exchange is closed for other than
weekends or holidays, or if permitted by the rules of the Securi-
ties and Exchange Commission, when trading on the Exchange is re-
stricted or during an emergency which makes it impracticable for
the Fund to dispose of its securities or to determine fairly the
value of its net assets, or during any other period as permitted
by the Securities and Exchange Commission for the protection of
investors. No share certificates will be issued.
SALES AT NET ASSET VALUE The Fund may sell its Class A shares at
net asset value without a sales charge to, among others, (a)
trustees or other fiduciaries purchasing shares for certain em-
ployer sponsored plans that have at least 100 eligible partici-
pants or at least $1 million in total plan assets, and (b) trust-
ees or other fiduciaries purchasing shares for certain employer-
sponsored plans, the trustee, administrator, fiduciary, broker,
trust company or registered investment adviser for which has an
agreement with the Distributor with respect to such purchases. The
Distributor will pay a commission to dealers who sell Class A
shares of the Fund at net asset value to certain employer-spon-
sored plans according to the following schedule: .50% of the first
$2,000,000 and .25% of amounts over $2,000,000. From time to time,
the Distributor, its parent and/or its affiliates may make addi-
tional payments to one or more participating brokers based upon
factors such as the level of sales or the length of time clients'
assets have remained in the Trust.
Exchange Privilege
A participant's plan may allow exchanges from one investment op-
tion to another. A participant should check with the plan adminis-
trator for details on the rules governing exchanges in the plan,
including the frequency of permitted exchanges. Certain investment
options may be subject to unique restrictions. Exchanges are ac-
cepted by the Trust only as permitted by a participant's plan.
How to Redeem
Shares are redeemed at their net asset value next determined after
a proper redemption request has been received. There is no charge
by the Distributor with respect to a redemption. Requests for re-
demption received by the Distributor prior to the close of the
Distributor's business day will be confirmed at the net asset
value effective as of the closing of the Exchange on that day.
Distributor and Distribution and Servicing Plan
The Distributor, a wholly owned subsidiary of PIMCO Advisors L.P.,
is the principal underwriter of the Fund's shares and in that con-
nection makes servicing payments to participating brokers, certain
banks and other financial intermediaries in connection with the
sale of Class A shares. Pursuant to a Distribution Contract with
the Trust, with respect to the Fund's Class A shares, the Distrib-
utor bears various other promotional and sales related expenses,
including the cost of printing and mailing prospectuses to persons
other than current shareholders.
CLASS A SERVICING FEES As compensation for services rendered and
expenses borne by the Distributor in connection with personal
services rendered to Class A shareholders of the Fund and the
maintenance of Class A shareholder accounts, the Trust pays the
Distributor servicing fees up to the annual rate of .25% of the
Fund's average daily net assets attributable to Class A shares.
The Class A servicing fees paid to the Distributor are paid un-
der a Distribution and Servicing Plan adopted pursuant to Rule
12b-l under the 1940 Act, and is of the type known as a "compensa-
tion" plan. This means that,
May 1, 1997 Prospectus
19
<PAGE>
although the Trustees of the Trust are expected to take into ac-
count the expenses of the Distributor and its predecessors in
their periodic review of the Distribution and Servicing Plan, the
fees are payable to compensate the Distributor for services ren-
dered even if the amount paid exceeds the Distributor's expenses.
The servicing fee applicable to Class A shares of the Fund may
be spent by the Distributor on personal services rendered to
shareholders of the Fund and the maintenance of shareholder ac-
counts, including compensation to, and expenses (including tele-
phone and overhead expenses) of, financial consultants or other
employees of participating or introducing brokers, certain banks
and other financial intermediaries who aid in the processing of
purchase or redemption requests or the processing of dividend pay-
ments, who provide information periodically to shareholders show-
ing their positions in the Fund's shares, who forward communica-
tions from the Trust to shareholders, who render ongoing advice
concerning the suitability of particular investment opportunities
offered by the Trust in light of the shareholders' needs, who re-
spond to inquiries from shareholders relating to such services, or
who train personnel in the provision of such services. Distribu-
tion and servicing fees may also be spent on interest relating to
unreimbursed distribution or servicing expenses from prior years.
Many of the Distributor's servicing efforts involve the Trust
as a whole, so that fees paid by Class A shares of the Fund may
indirectly support servicing efforts relating to shares of the
same class of the other series of the Trust. In reporting its ex-
penses to the Trustees, the Distributor itemizes expenses that re-
late to the distribution and/or servicing of the Fund's shares,
and allocates other expenses among all of the operational series
based on their relative net assets. Expenses allocated to the Fund
are further allocated among its classes of shares annually based
on the relative sales of each class, except for any expenses that
relate only to the sale or servicing of a single class. The Dis-
tributor may make payments to brokers (and with respect to servic-
ing fees only, to certain banks and other financial intermediar-
ies) of up to .25% annually of the average daily net assets at-
tributable to shares in the accounts of their customers or cli-
ents. Payments may be made, in part, with respect to Class A
shares of the Fund issued to former shareholders of PIMCO Advisors
Funds in connection with the reorganizations of series of PIMCO
Advisors Funds with series of the Trust, including the Fund, in a
transaction which took place on January 17, 1997.
The Distributor may from time to time pay additional cash bo-
nuses or other incentives to selected participating brokers in
connection with the servicing of Class A shares of the Fund. On
some occasions, such bonuses or incentives may be conditioned upon
the sale of a specified minimum dollar amount of the shares of the
Fund and/or all of the series of the Trust together or a particu-
lar class of shares, during a specific period of time. The Dis-
tributor currently expects that such additional bonuses or incen-
tives will not exceed .50% of the amount of any sale. Pacific In-
vestment Management (in its capacity as administrator) may also
pay participating brokers and other intermediaries for transfer
agency and other services.
If in any year the Distributor's expenses incurred in connec-
tion with the servicing of shareholders and the maintenance of
shareholder accounts exceed the servicing fees paid by the Trust,
the Distributor would recover such excess only if the Distribution
and Servicing Plan with respect to Class A shares continues to be
in effect in some later year when the servicing fees exceed the
Distributor's expenses. The Trust is not obligated to repay any
unreimbursed expenses that may exist at such time, if any, as the
relevant Distribution and Servicing Plan terminates.
How Net Asset Value Is Determined
The net asset value per share of Class A shares of the Fund is de-
termined as of the close of trading (normally 4:00 p.m., Eastern
time) on the Exchange by dividing the total market value of the
Fund's portfolio investments and other assets attributable to that
class, less any liabilities, by the number of total outstanding
shares of that class. Net asset value will not be determined on
days on which the Exchange is closed.
Portfolio securities and other assets for which market quota-
tions 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
20
PIMCO Funds: Pacific Investment Management Series
<PAGE>
securities traded over-the-counter, at the mean between represen-
tative bid and asked quotations obtained from a quotation report-
ing system or from established market makers. Fixed income securi-
ties, including those to be purchased under firm commitment agree-
ments (other than obligations having a maturity of 60 days or
less), are normally valued on the basis of quotations obtained
from brokers and dealers or pricing services, which take into ac-
count appropriate factors such as institutional-sized trading in
similar groups of securities, yield, quality, coupon rate, maturi-
ty, type of issue, trading characteristics, and other market data.
Quotations of foreign securities in foreign currency are con-
verted to U.S. dollar equivalents using foreign exchange quota-
tions received from independent dealers. Short-term investments
having a maturity of 60 days or less are valued at amortized cost,
when the Board of Trustees determines that amortized cost is their
fair 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
and whose durations are comparable to the securities being valued.
Subject to the foregoing, other securities for which market quota-
tions are not readily available are valued at fair value as deter-
mined in good faith by the Board of Trustees.
The Fund's liabilities are allocated among its classes. The to-
tal of such liabilities allocated to a class plus that class's
distribution and/or servicing fees and any other expenses spe-
cially allocated to that class are then deducted from the class's
proportionate interest in the Fund's assets, and the resulting
amount for each class is divided by the number of shares of that
class outstanding to produce the class's "net asset value" per
share.
Distributions
The Fund pays out as dividends substantially all of its net in-
vestment income (which comes from dividends and interest it re-
ceives or is deemed to receive from its investments) and net real-
ized short-term capital gains. For these purposes and for federal
income tax purposes, a portion of the premiums from certain ex-
pired call or put options written by the Fund, net gains from
closing purchase and sale transactions with respect to such op-
tions, and net gains from futures transactions are treated as
short-term capital gains. The Fund distributes substantially all
of its net realized capital gains, if any, after giving effect to
any available capital loss carry-over.
Shares begin earning dividends on the effective date of pur-
chase, which is the date that funds are received by the Trust for
the purchase of shares. Dividends are declared daily from net in-
vestment income to shareholders of record at the close of the pre-
vious business day, and distributed to shareholders monthly. Any
net realized capital gains from the sale of portfolio securities
will be distributed no less frequently than once yearly. Dividend
and capital gain distributions of the Fund will be reinvested in
additional shares of the Fund unless the shareholder elects to
have them paid in cash.
Dividends and capital gains distributions may be declared more
or less frequently in the discretion of the Trustees. There are no
sales charges on reinvested dividends.
Taxes
The Fund intends to qualify as a regulated investment company an-
nually and to elect to be treated as a regulated investment com-
pany under the Internal Revenue Code of 1986, as amended. As such,
the Fund generally will not pay federal income tax on the income
and gains it pays as dividends to its shareholders. In order to
avoid a 4% federal excise tax, the Fund intends to distribute each
year substantially all of its net income and gains.
Distributions received by tax-exempt shareholders will not be
subject to federal income tax to the extent permitted under appli-
cable tax law. To the extent that a shareholder is not exempt from
tax on Fund distributions, such shareholder will be subject to tax
on dividends received from the Fund, regardless of whether re-
ceived in cash or reinvested in additional shares. All sharehold-
ers must treat dividends, other than capital gain dividends or
dividends that represent a
May 1, 1997 Prospectus
21
<PAGE>
return of capital to shareholders, as ordinary income. Dividends
designated by the Fund as capital gain dividends are taxable to
shareholders as long-term capital gain except as provided by an
applicable tax exemption. Any distributions that are not from the
Fund's net investment income or net capital gain may be character-
ized as a return of capital to shareholders or, in some cases, as
capital gain. Certain dividends declared in October, November or
December of a calendar year are taxable to shareholders (who oth-
erwise are subject to tax on dividends) as though received on De-
cember 31 of that year if paid to shareholders during January of
the following calendar year. For state income tax purposes, inter-
est on some federal obligations generally is not exempt from taxa-
tion, whether received directly by a shareholder or through dis-
tributions of investment company taxable income (for example, in-
terest on FNMA and GNMA Certificates). The Fund will advise share-
holders annually of the amount and nature of the dividends paid
to them.
Coupon payments received by the Fund from inflation-indexed
bonds will be includable in the Fund's gross income in the period
in which they accrue. Periodic adjustments for inflation in the
principal value of these securities also may give rise to original
issue discount, which, likewise, will be includable in the Fund's
gross income on a current basis. See "Taxation--Original Issue
Discount" in the Statement of Additional Information. Amounts
includable in the Fund's gross income become subject to tax-re-
lated distribution requirements. Accordingly, the Fund may be re-
quired to make annual distributions to shareholders in excess of
the cash received in a given period from these investments. As a
result, the Fund may be required to liquidate certain investments
at a time when it is not advantageous to do so. If the principal
value of an inflation-indexed bond is adjusted downward in any pe-
riod as a result of deflation, the reduction may be treated as a
loss to the extent the reduction exceeds coupon payments received
in that period; in that case, the amount distributable by the Fund
may be reduced and amounts distributed previously in the taxable
year may be characterized in some circumstances as a return of
capital.
Taxable shareholders should note that the timing of their in-
vestment could have undesirable tax consequences. If shares are
purchased on or just before the record date of a dividend, taxable
shareholders will pay full price for the shares and may receive a
portion of their investment back as a taxable distribution.
If the Fund is used as an investment option in an employer-
sponsored retirement savings plan, dividend and capital gains
distributions from the Fund generally will not be subject to
current taxation, but will accumulate on a tax-deferred basis. In
general, employer-sponsored retirement and savings plans are
governed by a complex set of tax rules. Participants in such a
plan should consult the plan administrator, the plan's Summary
Plan Description, or a professional tax advisor regarding the tax
consequences of participation in the plan and of any plan
contributions or withdrawals.
The preceding discussion relates only to federal income tax;
the consequences under other tax laws may differ. For additional
information relating to the tax aspects of investing in the Fund,
see the Statement of Additional Information.
Management of the Trust
The business affairs of the Trust are managed under the direction
of the Board of Trustees. The Trustees are Guilford C. Babcock,
Vern O. Curtis, Brent R. Harris, Thomas P. Kemp, and William J.
Popejoy. Additional information about the Trustees and the Trust's
executive officers may be found in the Statement of Additional In-
formation under the heading "Management--Trustees and Officers."
INVESTMENT Pacific Investment Management serves as investment adviser ("Advi-
ADVISOR sor") to the Fund pursuant to an investment advisory contract. The
Advisor is an investment counseling firm founded in 1971, and had
approximately $91 billion in assets under management as of March
31, 1997. Pacific Investment Management is a subsidiary partner-
ship of PIMCO Advisors L.P. ("PIMCO Advisors"). A majority inter-
est in PIMCO Advisors is held by PIMCO Partners, G.P., a general
partnership between Pacific Investment Management Company, a Cali-
fornia corporation and indirect wholly
22
PIMCO Funds: Pacific Investment Management Series
<PAGE>
owned subsidiary of Pacific Mutual Life Insurance Company ("Pa-
cific Mutual"), and PIMCO Partners, LLC, a limited
liability company controlled by the PIMCO Managing Directors. Pa-
cific Investment Management's address is 840 Newport Center Drive,
Suite 360, Newport Beach, California 92660. Pacific Investment
Management is registered as an investment adviser with the Securi-
ties and Exchange Commission and as a commodity trading advisor
with the CFTC.
The Advisor manages the investment and reinvestment of the as-
sets of the Fund. The Advisor is responsible for placing orders
for the purchase and sale of the Fund's investments directly with
brokers or dealers selected by it in its discretion. See "Portfo-
lio Transactions" in the Statement of Additional Information.
The portfolio manager responsible for management of the Fund is
William H. Gross, Managing Director, Pacific Investment Manage-
ment. A Fixed Income Portfolio Manager, Mr. Gross is one of the
founders of Pacific Investment Management and has managed the Fund
since its inception, May 11, 1987.
FUND
ADMINISTRATOR
Pacific Investment Management also serves as administrator to the
Fund pursuant to an administration agreement with the Trust. Pa-
cific Investment Management provides administrative services to
the Fund, which include clerical help and accounting, bookkeeping,
internal audit services, and certain other services required by
the Fund, preparation of reports to the Fund's shareholders and
regulatory filings. Pacific Investment Management may also retain
certain of its affiliates to provide certain of these services. In
addition, Pacific Investment Management, at its own expense, ar-
ranges for the provision of legal, audit, custody, transfer agency
(including sub-transfer agency and other administrative services)
and other services for the Fund, and is responsible for the costs
of registration of the Fund's shares and the printing of prospec-
tuses and shareholder reports for current shareholders.
The Fund (and not Pacific Investment Management) 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 Pacific Invest-
ment Management 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 expenses; (v) fees and expenses of the Trustees
who are not "interested persons" of Pacific Investment Management
or the Trust, and any counsel retained exclusively for their bene-
fit; (vi) extraordinary expenses, including costs of litigation
and indemnification expenses; (vii) expenses, such as organiza-
tional expenses, which are capitalized in accordance with gener-
ally accepted accounting principles; and (viii) any expenses allo-
cated or allocable to a specific class of shares, which include
servicing fees payable with respect to Class A shares, and may in-
clude certain other expenses as permitted by the Trust's Multi-
Class Plan adopted pursuant to Rule 18f-3 under the 1940 Act, sub-
ject to review and approval by the Trustees.
ADVISORY
AND
ADMINISTRATIVE
FEES
The Fund features fixed advisory and administrative fee rates. For
providing investment advisory and administrative services to the
Fund as described above, Pacific Investment Management receives
monthly fees from the Fund at an annual rate (i) based on the av-
erage daily net assets of the Fund for advisory fees and, (ii) at-
tributable in the aggregate to the Fund's Class A, Class B and
Class C shares for administrative fees, as follows:
<TABLE>
<CAPTION>
ADVISORY ADMINISTRATIVE
FEE RATE FEE RATE
--------------------------
<S> <C>
.25% .40%
</TABLE>
Both the investment advisory contract and administration agree-
ment with respect to Class A shares of the Fund may be terminated
by the Trustees at any time on 60 days' written notice. The in-
vestment advisory contract may be terminated by Pacific Investment
Management on 60 days' written notice. Following the expiration of
the one-year
May 1, 1997 Prospectus
23
<PAGE>
period commencing with the effectiveness of the administration
agreement, it may be terminated by Pacific Investment Management
on 60 days' written notice. Following its initial two-year term,
the investment advisory contract will continue from year to year
if approved by the Trustees. Following its initial one-year term,
the administration agreement with respect to Class A shares of the
Fund will continue from year-to-year if approved by the Trustees.
PORTFOLIO Pursuant to the advisory contract, the Advisor places orders for
TRANSACTIONS the purchase and sale of portfolio investments for the Fund's ac-
counts with brokers or dealers selected by it in its discretion.
In effecting purchases and sales of portfolio securities for the
account of the Fund, the Advisor will seek the best price and exe-
cution of the Fund's orders. In doing so, the Fund may pay higher
commission rates than the lowest available when the Advisor be-
lieves it is reasonable to do so in light of the value of the bro-
kerage and research services provided by the broker effecting the
transaction. The Advisor also may consider sales of shares of the
Trust as a factor in the selection of broker-dealers to execute
portfolio transactions for the Fund.
Some securities considered for investments by the Fund may also
be appropriate for other clients served by the Advisor. If a pur-
chase or sale of securities consistent with the investment poli-
cies of the Fund and one or more of these clients served by the
Advisor is considered at or about the same time, transactions in
such securities will be allocated among the Fund and clients in a
manner deemed fair and reasonable by the Advisor.
Description of the Trust
CAPITALIZATION
The Trust was organized as a Massachusetts business trust on Feb-
ruary 19, 1987. The Board of Trustees may establish additional
portfolios in the future. The capitalization of the Trust consists
solely of an unlimited number of shares of beneficial interest
with a par value of $0.0001 each. When issued, shares of the Trust
are fully paid, non-assessable and freely transferable.
Under Massachusetts law, shareholders could, under certain cir-
cumstances, be held personally liable for the obligations of the
Trust. However, the Declaration of Trust disclaims liability of
the shareholders, Trustees or officers of the Trust for acts or
obligations of the Trust, which are binding only on the assets and
property of the Trust, and requires that notice of the disclaimer
be given in each contract or obligation entered into or executed
by the Trust or the Trustees. The Declaration of Trust also pro-
vides for indemnification out of Trust property for all loss and
expense of any shareholder held personally liable for the obliga-
tions of the Trust. The risk of a shareholder incurring financial
loss on account of shareholder liability is limited to circum-
stances in which such disclaimer is inoperative or the Trust it-
self is unable to meet its obligations, and thus should be consid-
ered remote.
MULTIPLE In addition to Class A, shares, the Fund offers Class B, Class C,
CLASSES OF Institutional Class and Administrative Class shares. Class A
SHARES shares sold for personal investment and the other classes of the
Fund may have different sales charges and expense levels, which
will affect performance accordingly. Investors may contact the
Distributor at 800-426-0107 for more information concerning other
classes of shares of the Fund. This Prospectus relates only to the
Class A shares of the Fund.
VOTING Shareholders have the right to vote on the election of Trustees
and on any and all matters on which the law or the Declaration of
Trust states they may be entitled to vote. The Trust is not re-
quired to hold regular annual meetings of Trust shareholders and
does not intend to do so. Shareholders of Class A shares or the
Fund have separate voting rights with respect to matters that only
affect that class or the Fund. See "Other Information--Voting
Rights" in the Statement of Additional Information.
The Declaration of Trust provides that the holders of not less
than two-thirds of the outstanding shares of the Trust may remove
a person serving as Trustee either by declaration in writing or at
a meeting called for such purpose. The Trustees are required to
call a meeting for the purpose of considering the removal of a
person serving as Trustee if requested in writing to do so by the
holders of not less than 10% of the outstanding shares of the
Trust. Shares entitle their holders to one vote per share (with
proportionate voting for fractional shares).
24
PIMCO Funds: Pacific Investment Management Series
<PAGE>
Mailings to Shareholders
To reduce the volume of mail shareholders receive, it is antici-
pated that only one copy of most Trust reports, such as the
Trust's annual report, will be mailed to a shareholder's household
(same surname, same address). A shareholder may call 800-426-0107
if additional shareholder reports are desired.
May 1, 1997 Prospectus
25
<PAGE>
Appendix A
Description of Duration
Duration is a measure of the expected life of a fixed income secu-
rity that was developed as a more precise alternative to the con-
cept of "term to maturity." Traditionally, a fixed income
security's "term to maturity" has been used as a proxy for the
sensitivity of the security's price to changes in interest rates
(which is the "interest rate risk" or "volatility" of the securi-
ty). However, "term to maturity" measures only the time until a
fixed income security provides its final payment, taking no ac-
count of the pattern of the security's payments prior to maturity.
In contrast, duration incorporates a bond's yield, coupon interest
payments, final maturity and call features into one measure. Dura-
tion management is one of the fundamental tools used by the Advi-
sor.
Duration is a measure of the expected life of a fixed income
security on a present value basis. Duration takes the length of
the time intervals between the present time and the time that the
interest and principal payments are scheduled or, in the case of a
callable bond, expected to be received, and weights them by the
present values of the cash to be received at each future point in
time. For any fixed income security with interest payments occur-
ring prior to the payment of principal, duration is always less
than maturity. In general, all other things being equal, the lower
the stated or coupon rate of interest of a fixed income security,
the longer the duration of the security; conversely, the higher
the stated or coupon rate of interest of a fixed income security,
the shorter the duration of the security.
Futures, options and options on futures have durations which,
in general, are closely related to the duration of the securities
which underlie them. Holding long futures or call option positions
(backed by a segregated account of cash and cash equivalents) will
lengthen the Fund's duration by approximately the same amount that
holding an equivalent amount of the underlying securities would.
Short futures or put option positions have durations roughly
equal to the negative duration of the securities that underlie
these positions, and have the effect of reducing portfolio dura-
tion by approximately the same amount that selling an equivalent
amount of the underlying securities would.
There are some situations where even the standard duration cal-
culation does not properly reflect the interest rate exposure of a
security. For example, floating and variable rate securities often
have final maturities of ten or more years; however, their inter-
est rate exposure corresponds to the frequency of the coupon re-
set. For inflation-indexed bonds, duration is calculated on the
basis of modified real duration, which measures price changes of
inflation-indexed bonds on the basis of changes in real, rather
than nominal, interest rates. Another example where the interest
rate exposure is not properly captured by duration is the case of
mortgage pass-through securities. The stated final maturity of
such securities is generally 30 years, but current prepayment
rates are more critical in determining the securities' interest
rate exposure. Finally, the duration of a fixed income security
may vary over time in response to changes in interest rates and
other market factors. In these and other similar situations, the
Advisor will use more sophisticated analytical techniques that in-
corporate the anticipated economic life of a security into the de-
termination of its interest rate exposure.
26
PIMCO Funds: Pacific Investment Management Series
<PAGE>
Appendix B
Description of Securities Ratings
The Fund's investments may range in quality from securities rated
in the lowest category in which the Fund is permitted to invest to
securities rated in the highest category (as rated by Moody's or
S&P or, if unrated, determined by the Advisor to be of comparable
quality). The percentage of the Fund's assets invested in securi-
ties in a particular rating category will vary. Following is a de-
scription of Moody's and S&P's ratings applicable to fixed income
securities.
MOODY'S CORPORATE AND MUNICIPAL BOND RATINGS
INVESTORS Aaa: Bonds which are rated Aaa are judged to be of the best
SERVICE, quality. They carry the smallest degree of investment risk and are
INC. generally referred to as "gilt edge." Interest payments are pro-
tected by a large or by an exceptionally stable margin and princi-
pal is secure. While the various protective elements are likely to
change, such changes as can be visualized are most unlikely to im-
pair the fundamentally strong position of such issues.
Aa: Bonds which are rated Aa are judged to be of high quality
by all standards. Together with the Aaa group they comprise what
are generally known as high-grade bonds. They are rated lower than
the best bonds because margins of protection may not be as large
as in Aaa securities or fluctuation of protective elements may be
of greater amplitude or there may be other elements present that
make the long-term risks appear somewhat larger than with Aaa se-
curities.
A: Bonds which are rated A possess many favorable investment
attributes and are to be considered as upper-medium-grade obliga-
tions. Factors giving security to principal and interest are con-
sidered adequate but elements may be present that suggest a sus-
ceptibility to impairment sometime in the future.
Baa: Bonds which are rated Baa are considered as medium-grade
obligations (i.e., they are neither highly protected nor poorly
secured). Interest payments and principal security appear adequate
for the present but certain protective elements may be lacking or
may be characteristically unreliable over any great length of
time. Such bonds lack outstanding investment characteristics and
in fact have speculative characteristics as well.
Ba: Bonds which are rated Ba are judged to have speculative el-
ements; their future cannot be considered as well-assured. Often
the protection of interest and principal payments may be very mod-
erate and thereby not well safeguarded during both good and bad
times over the future. Uncertainty of position characterizes bonds
in this class.
B: Bonds which are rated B generally lack characteristics of a
desirable investment. Assurance of interest and principal payments
or of maintenance of other terms of the contract over any long pe-
riod of time may be small.
Caa: Bonds which are rated Caa are of poor standing. Such is-
sues may be in default or there may be present elements of danger
with respect to principal or interest.
Ca: Bonds which are rated Ca represent obligations which are
speculative in a high degree. Such issues are often in default or
have other marked shortcomings.
C: Bonds which are rated C are the lowest rated class of bonds
and issues so rated can be regarded as having extremely poor pros-
pects of ever attaining any real investment standing.
Moody's applies numerical modifiers, 1, 2, and 3 in each ge-
neric rating classified from Aa through B in its corporate bond
rating system. The modifier 1 indicates that the security ranks in
the higher end of its generic rating category; the modifier 2 in-
dicates a mid-range ranking; and the modifier 3 indicates that the
issue ranks in the lower end of its generic rating category.
CORPORATE SHORT-TERM DEBT RATINGS
Moody's short-term debt ratings are opinions of the ability of is-
suers to repay punctually senior debt obligations which have an
original maturity not exceeding one year. Obligations relying upon
support mechanisms such as letters of credit and bonds of indem-
nity are excluded unless explicitly rated.
27
May 1, 1997 Prospectus
<PAGE>
Moody's employs the following three designations, all judged to
be investment grade, to indicate the relative repayment ability of
rated issuers:
PRIME-1: Issuers rated Prime-1 (or supporting institutions)
have a superior ability for repayment of senior short-term debt
obligations. Prime-1 repayment ability will often be evidenced by
many of the following characteristics: leading market positions in
well-established industries; high rates of return on funds em-
ployed; conservative capitalization structure with moderate reli-
ance on debt and ample asset protection; broad margins in earnings
coverage of fixed financial charges and high internal cash genera-
tion; and well-established access to a range of financial markets
and assured sources of alternate liquidity.
PRIME-2: Issuers rated Prime-2 (or supporting institutions)
have a strong ability for repayment of senior short-term debt ob-
ligations. This will normally be evidenced by many of the charac-
teristics cited above but to a lesser degree. Earnings trends and
coverage ratios, while sound, may be more subject to variation.
Capitalization characteristics, while still appropriate, may be
more affected by external conditions. Ample alternate liquidity is
maintained.
PRIME-3: Issuers rated Prime-3 (or supporting institutions)
have an acceptable ability for repayment of senior short-term ob-
ligations. The effect of industry characteristics and market com-
positions may be more pronounced. Variability in earnings and
profitability may result in changes in the level of debt protec-
tion measurements and may require relatively high financial lever-
age. Adequate alternate liquidity is maintained.
NOT PRIME: Issuers rated Not Prime do not fall within any of
the Prime rating categories.
STANDARD & CORPORATE AND MUNICIPAL BOND RATINGS
POOR'S
CORPORATION
Investment Grade
AAA: Debt rated AAA has the highest rating assigned by Standard
& Poor's. Capacity to pay interest and repay principal is ex-
tremely strong.
AA: Debt rated AA has a very strong capacity to pay interest
and repay principal and differs from the highest rated issues only
in small degree.
A: Debt rated A has a strong capacity to pay interest and repay
principal although it is somewhat more susceptible to the adverse
effects of changes in circumstances and economic conditions than
debt in higher rated categories.
BBB: Debt rated BBB is regarded as having an adequate capacity
to pay interest and repay principal. Whereas it normally exhibits
adequate protection parameters, adverse economic conditions, or
changing circumstances are more likely to lead to a weakened ca-
pacity to pay interest and repay principal for debt in this cate-
gory than in higher-rated categories.
Speculative Grade
Debt rated BB, B, CCC, CC, and C is regarded as having predomi-
nantly speculative characteristics with respect to capacity to pay
interest and repay principal. BB indicates the least degree of
speculation and C the highest. While such debt will likely have
some quality and protective characteristics, these are outweighed
by large uncertainties or major exposures to adverse conditions.
BB: Debt rated BB has less near-term vulnerability to default
than other speculative issues. However, it faces major ongoing un-
certainties or exposure to adverse business, financial, or eco-
nomic conditions which could lead to inadequate capacity to meet
timely interest and principal payments. The BB rating category is
also used for debt subordinated to senior debt that is assigned an
actual or implied BBB- rating.
B: Debt rated B has a greater vulnerability to default but cur-
rently has the capacity to meet interest payments and principal
repayments. Adverse business, financial, or economic conditions
will likely impair capacity or willingness to pay interest and re-
pay principal. The B rating category is also used for debt subor-
dinated to senior debt that is assigned an actual or implied BB or
BB- rating.
CCC: Debt rated CCC has a currently identifiable vulnerability
to default and is dependent upon favorable business, financial,
and economic conditions to meet timely payment of interest and re-
payment of principal. In the
28
PIMCO Funds: Pacific Investment Management Series
<PAGE>
event of adverse business, financial or economic conditions, it is
not likely to have the capacity to pay interest and repay princi-
pal. The CCC rating category is also used for debt subordinated to
senior debt that is assigned an actual or implied B or B- rating.
CC: The rating CC is typically applied to debt subordinated to
senior debt that is assigned an actual or implied CCC rating.
C: The rating C is typically applied to debt subordinated to
senior debt that is assigned an actual or implied CCC- debt rat-
ing. The C rating may be used to cover a situation where a bank-
ruptcy petition has been filed, but debt service payments are con-
tinued.
CI: The rating CI is reserved for income bonds on which no in-
terest is being paid.
D: Debt rated D is in payment default. The D rating category is
used when interest payments or principal payments are not made on
the date due even if the applicable grace period has not expired,
unless S&P believes that such payments will be made during such
grace period. The D rating will also be used upon the filing of a
bankruptcy petition if debt service payments are jeopardized.
Plus (+) or Minus (-): The ratings from AA to CCC may be modi-
fied by the addition of a plus or minus sign to show relative
standing within the major rating categories.
Provisional ratings: The letter "p" indicates that the rating
is provisional. A provisional rating assumes the successful com-
pletion of the project being financed by the debt being rated and
indicates that payment of debt service requirements is largely or
entirely dependent upon the successful and timely completion of
the project. This rating, however, while addressing credit quality
subsequent to completion of the project, makes no comment on the
likelihood of, or the risk of default upon failure of, such com-
pletion. The investor should exercise his own judgment with re-
spect to such likelihood and risk.
r: The "r" is attached to highlight derivative, hybrid, and
certain other obligations that S&P believes may experience high
volatility or high variability in expected returns due to non-
credit risks. Examples of such obligations are: securities whose
principal or interest return is indexed to equities, commodities,
or currencies; certain swaps and options; and interest only and
principal only mortgage securities.
The absence of an "r" symbol should not be taken as an indica-
tion that an obligation will exhibit no volatility or variability
in total return.
N.R.: Not rated.
Debt obligations of issuers outside the United States and its
territories are rated on the same basis as domestic corporate and
municipal issues. The ratings measure the creditworthiness of the
obligor but do not take into account currency exchange and related
uncertainties.
COMMERCIAL PAPER RATING DEFINITIONS
A Standard & Poor's commercial paper rating is a current assess-
ment of the likelihood of timely payment of debt having an origi-
nal maturity of no more than 365 days. Ratings are graded into
several categories, ranging from A for the highest quality obliga-
tions to D for the lowest. These categories are as follows:
A-1: This highest category indicates that the degree of safety
regarding timely payment is strong. Those issues determined to
possess extremely strong safety characteristics are denoted with a
plus sign (+) designation.
A-2: Capacity for timely payment on issues with this designa-
tion is satisfactory. However, the relative degree of safety is
not as high as for issues designated A-1.
A-3: Issues carrying this designation have adequate capacity
for timely payment. They are, however, more vulnerable to the ad-
verse effects of changes in circumstances than obligations carry-
ing the higher designations.
B: Issues rated B are regarded as having only speculative ca-
pacity for timely payment.
C: This rating is assigned to short-term debt obligations with
a doubtful capacity for payment.
D: Debt rated D is in payment default. The D rating category is
used when interest payments or principal payments are not made on
the date due, even if the applicable grace period has not expired,
unless S&P believes that such payments will be made during such
grace period.
29
May 1, 1997 Prospectus
<PAGE>
A commercial paper rating is not a recommendation to purchase,
sell or hold a security inasmuch as it does not comment as to mar-
ket price or suitability for a particular investor. The ratings
are based on current information furnished to Standard & Poor's by
the issuer or obtained from other sources it considers reliable.
Standard & Poor's does not perform an audit in connection with any
rating and may, on occasion, rely on unaudited financial informa-
tion. The ratings may be changed, suspended, or withdrawn as a re-
sult of changes in or unavailability of such information.
30
PIMCO Funds: Pacific Investment Management Series
<PAGE>
TOTAL RETURN INVESTMENT ADVISOR AND ADMINISTRATOR
FUND
Pacific Investment Management Company, 840 Newport
Center Drive, Suite 360, Newport Beach, CA 92660
-----------------------------------------------------------
DISTRIBUTOR
PIMCO Funds Distribution Company, 2187 Atlantic Street,
Stamford, CT 06902
-----------------------------------------------------------
CUSTODIAN
Investors Fiduciary Trust Company, 127 West 10th Street,
Kansas City, MO 64105
-----------------------------------------------------------
SHAREHOLDER SERVICING AGENT AND TRANSFER AGENT
Shareholder Services, Inc. P.O. Box 5866, Denver, CO 80217
-----------------------------------------------------------
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP, 1055 Broadway, Kansas City, MO 64105
-----------------------------------------------------------
LEGAL COUNSEL
Dechert Price & Rhoads, 1500 K Street N.W., Washington,
D.C. 20005
-----------------------------------------------------------
For further information about the PIMCO Funds,
call 1-800-227-7337.
PIMCO
<PAGE>
PART C. OTHER INFORMATION
--------------------------
Item 24. Financial Statements and Exhibits
---------------------------------
(a) Financial statements for the Trust as of March 31, 1996, and for its
fiscal year then ended, including notes thereto, and the reports of
Price Waterhouse LLP thereon, dated May 10, 1996 are incorporated by
reference from the Annual Report. Financial Statements for the Trust
as of September 30, 1996, including the notes thereto, are
incorporated by reference from the Semi-Annual Report. Financial
statements for the Global Bond Fund II (prior to January 17, 1997, the
Global Income Fund) as of September 30, 1996, for its fiscal year then
ended, including notes thereto and a related report of Coopers &
Lybrand L.L.P. thereon, dated November 22, 1996 are incorporated by
reference in the Statement of Additional Information from the Annual
Report of PIMCO Advisors Funds dated as of September 30, 1996.
(b) Exhibits
(1) (i) Declaration of Trust of Registrant/1/
(ii) Establishment and Designation of Global, Foreign, Low Duration
South Africa Free and Total Return South Africa Free Portfolios
as Series of Registrant/5/
(iii) Establishment and Designation of High Yield, Low Duration II
and Total Return II Portfolios as Series of Registrant/6/
(iv) Establishment and Designation of Income and Capital Preservation
Portfolio I and Income and Capital Preservation Portfolio II as
Series of Registrant/7/
(v) Amended and Restated Establishment and Designation of Series of
Shares of Registrant/8/
(vi) Amended Designation of Two Series of Registrant/8/
(vii) Second Amended and Restated Establishment and Designation of
Series of Shares of Registrant/9/
(viii) Establishment and Designation of Moderate Duration and
VersaSTYLE Equity Funds as Series of Registrant/10/
(ix) Amended Designation of Two Series of Registrant/14/
(x) Establishment and Designation of StocksPLUS Short Strategy
Fund as Series of Registrant/15/
(xi) Redesignation of One Existing Series and Establishment and
Designation of Two New Series of Registrant/16/
(xii) Form of Redesignation of One Series of Registrant/17/
<PAGE>
(xiii) Establishment and Designation of One Additional Series of
Shares and Amended and Restated Establishment and Designation of
Series of Shares of Registrant/21/
(xiv) Amended Designation of Five Existing Series of Registrant/21/
(xv) Establishment and Designation of One Additional Series of Shares
of Registrant/21/
(2) By-laws of Registrant/1/
(3) Not applicable
(4) Not applicable
(5) (i) Investment Advisory Contract/2/
(ii) Supplements to Investment Advisory Contract Relating to Global,
Foreign, Low Duration South Africa Free and Total Return South
Africa Free Portfolios/5/
(iii) Supplements to Investment Advisory Contract Relating to
High Yield, Low Duration II and Total Return II Portfolios/6/
(iv) Supplements to Investment Advisory Contract Relating to Income
and Capital Preservation Portfolio I and Income and Capital
Preservation Portfolio II/7/
(v) Form of Supplements to Investment Advisory Contract Relating
to Moderate Duration Fund and VersaSTYLE Equity Fund/10/
(vi) Form of Amended Investment Advisory Contract/11/
(vii) Form of Supplement to Investment Advisory Contract/12/
(viii) Form of Supplement to Investment Advisory Contract Relating to
StocksPLUS Short Strategy Fund/15/
(ix) Supplements to Investment Advisory Contract/16/
(x) Form of Supplement to Investment Advisory Contract Relating to
Global Bond Fund II/21/
(xi) Form of Supplement to Investment Advisory Contract Relating to
Real Return Bond Fund/21/
(6) (i) Distribution Contract/2/
(ii) Supplement to Distribution Contract Relating to Global, Foreign,
Low Duration South Africa Free and Total Return South Africa
Free Portfolios/5/
- 2 -
<PAGE>
(iii) Supplement to Distribution Contract Relating to High Yield, Low
Duration II and Total Return II Portfolios/6/
(iv) Supplements to Distribution Contract Relating to Income and
Capital Preservation Portfolio I and Income and Capital
Preservation Portfolio II/7/
(v) Form of Distribution Contract as Amended May 31, 1994/9/
(vi) Form of Supplements to Distribution Contract Relating to
Moderate Duration Fund and VersaSTYLE Equity Fund/10/
(vii) Form of Amended Distribution Contract/11/
(viii) Form of Supplement to Distribution Contract Relating to
StocksPLUS Short Strategy Fund/15/
(ix) Supplements to Distribution Contract/16/
(x) Form of Distribution Contract/18/
(xi) Form of Supplement to Distribution Contract Relating to Real
Return Bond Fund/21/
(7) Not applicable
(8) Custodian Agreement/4/
(9) (i) Transfer Agency Agreement/4/
(ii) Form of Transfer Agency Agreement with Shareholder Services,
Inc./19/
(10) (i) Opinion of Counsel/13/
(ii) Consent of Counsel/3/
(11) (i) Consent of Price Waterhouse LLP
(ii) Consent of Coopers & Lybrand L.L.P.
(12) Not applicable
(13) Not applicable
(14) Not applicable
(15) (i) Form of Distribution Plan for Administrative Class Shares/9/
(ii) Administrative Services Contract/2/
(iii) Supplements to Administrative Services Contract relating to
Global, Foreign, Low Duration South Africa Free and Total Return
South Africa Free Portfolios/5/
- 3 -
<PAGE>
(iv) Supplement to Administrative Services Contract Relating to High
Yield, Low Duration II and Total Return II Portfolios/6/
(v) Supplements to Administrative Services Contract Relating to
Income and Capital Preservation Portfolio I and Income and
Capital Preservation Portfolio II/7/
(vi) Form of Administrative Services Plan for Administrative Class
Shares/9/
(vii) Form of Supplements to Administrative Services Contract Relating
to Moderate Duration Fund and VersaSTYLE Equity Fund/10/
(viii) Form of Amended Administrative Services Contract/11/
(ix) Form of Amended Administrative Services Contract/12/
(x) Form of Supplement to Administration Agreement Relating to
StocksPLUS Short Strategy Fund/16/
(xi) Supplements to Administration Agreement/16/
(xii) Form of Amendment to Administration Agreement/18/
(xiii) Form of Amendment to Administration Agreement/21/
(xiv) Form of Administration Agreement between PIMCO Advisors L.P. and
Pacific Investment Management Company /20/
(xv) Form of Distribution and Servicing Plan for Class A
shares/18/
(xvi) Form of Distribution and Servicing Plan for Class B
shares/18/
(xvii) Form of Distribution and Servicing Plan for Class C
shares/18/
(16) Calculation of Performance/12/
(17) Financial Data Schedule
(18) (i) Dual-Class Plan/12/
(ii) Amended Dual-Class Plan/16/
(iii) Amended and Restated Multi-Class Plan adopted pursuant to
Rule 18f-3/18/
- 4 -
<PAGE>
/1/ Filed with initial Registration Statement on February 19, 1987
(File No. 33-12113).
/2/ Filed with Pre-Effective Amendment No. 2 on April 21, 1987.
/3/ Filed with Pre-Effective Amendment No. 4 on May 5, 1987.
/4/ Filed with Post-Effective Amendment No. 3 on August 1, 1988.
/5/ Filed with Post-Effective Amendment No. 8 on August 3, 1990.
/6/ Filed with Post-Effective Amendment No. 10 on May 31, 1991.
/7/ Filed with Post-Effective Amendment No. 12 on August 29, 1991.
/8/ Filed with Post-Effective Amendment No. 15 on June 1, 1992.
/9/ Filed with Post-Effective Amendment No. 20 on June 1, 1994.
/10/ Filed with Post-Effective Amendment No. 21 on August 1, 1994.
/11/ Filed with Post-Effective Amendment No. 22 on November 30, 1994.
/12/ Filed with Post-Effective Amendment No. 23 on June 1, 1995.
/13/ Filed with Registrant's Rule 24f-2 Notice.
/14/ Filed with Post-Effective Amendment No. 24 on July 31, 1995.
/15/ Filed with Post-Effective Amendment No. 27 on January 16, 1996.
/16/ Filed with Post-Effective Amendment No. 28 on April 1, 1996.
/17/ Filed with Post-Effective Amendment No. 29 on June 14, 1996.
/18/ Filed with Registration Statement on Form N-14 (File No. 333-12871) on
September 27, 1996.
/19/ Filed with Post Effective Amendment No. 33 to the Registration Statement
of PIMCO Advisors Funds (File No. 2-87203) on November 30, 1995.
/20/ Filed with Post Effective Amendment No. 25 to the Registration Statement
of PIMCO Funds: Equity Advisors Series (File No. 33-36528) on January 13,
1997.
/21/ Filed with Post Effective Amendment No. 33 on January 13, 1997.
- 5 -
<PAGE>
Item 25. Persons Controlled by or Under Common Control With Registrant
-------------------------------------------------------------
No person is controlled by or under common control with the
Registrant.
Item 26. Number of Holders of Securities
-------------------------------
As of March 31, 1997, the number of record holders of each Fund and
Class thereof of the Registrant were as follows:
<TABLE>
<CAPTION>
Class
-----
Institutional Administrative A B C
------------- -------------- - - -
Fund
----
<S> <C> <C> <C> <C> <C>
Money Market 199 1 708 126 5,224
Short-Term 122 3 19 13 44
Low Duration 550 11 302 314 3,445
Low Duration II 47 0 0 0 0
Low Duration III 2 0 0 0 0
Moderate Duration 3 0 0 0 0
High Yield 89 7 1,070 2,759 15,347
Total Return 1,261 52 2,576 3,661 21,253
Total Return II 185 8 0 0 0
Total Return III 25 0 0 0 0
Commercial Mortgage
Securities 0 0 0 0 0
Long-Term U.S. Government 20 0 19 19 19
Real Return Bond 5 0 1 13 9
Foreign Bond 56 0 35 61 102
Global Bond 48 3 0 0 0
Global Bond II 0 0 291 257 384
International Bond 115 0 0 0 0
StocksPLUS 66 3 254 525 649
StocksPLUS Short Strategy 0 0 0 0 0
Strategic Balanced 5 0 0 0 0
</TABLE>
Item 27. Indemnification
---------------
Reference is made to Article IV of the Registrant's Declaration of
Trust, which was filed with the Registrant's initial Registration
Statement.
Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to trustees, officers and
controlling persons of the Registrant by the Registrant pursuant to
the Declaration of Trust or otherwise, the Registrant is aware that in
the opinion of the Securities and Exchange Commission, such
indemnification is against public policy as expressed in the Act and,
- 6 -
<PAGE>
public policy as expressed in the Act and, therefore, is
unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Registrant of expenses
incurred or paid by trustees, officers or controlling persons of the
Registrant in connection with the successful defense of any act, suit
or proceeding) is asserted by such trustees, officers or controlling
persons in connection with the shares being registered, the Registrant
will, unless in the opinion of its counsel the matter has been settled
by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Act and will be governed by
the final adjudication of such issues.
Item 28. Business and Other Connections of Investment Adviser
----------------------------------------------------
PIMCO, the investment adviser to the Trust, is a subsidiary
partnership of PIMCO Advisors L.P. ("PIMCO Advisors"). The general
partner of PIMCO Advisors is PIMCO Partners, G.P., a general
partnership between Pacific Investment Management Company, an indirect
wholly-owned subsidiary of Pacific Mutual Life Insurance Company
("Pacific Mutual"), and PIMCO Partners LLC, a limited liability
company controlled by the PIMCO Managing Directors.
The directors and officers of PIMCO and their business and other
connections are as follow:
Name Business and Other Connections
- ---- ------------------------------
Allan, George C. Vice President, PIMCO and PIMCO Management, Inc.
Arnold, Tamara J. Vice President, PIMCO and PIMCO Management, Inc.
Barbi, Leslie A. Senior Vice President, PIMCO and PIMCO Management,
Inc.
Benz, William R. II Managing Director, PIMCO; Director, Managing
Director, PIMCO Management, Inc.
Brynjolfsson, John B. Vice President, PIMCO and PIMCO Management, Inc.
- 7 -
<PAGE>
Name Business and Other Connections
- ---- ------------------------------
Burns, R. Wesley Executive Vice President, PIMCO and PIMCO
Management, Inc.; President of the Trust and PIMCO
Commercial Mortgage Securities Trust, Inc.; Executive
Vice President, PIMCO Funds: Multi-Manager Series;
Vice President, Cash Accumulation Trust.
Cupps, Wendy W. Vice President, PIMCO and PIMCO Management, Inc.
Daniels, Charles M. III Executive Vice President, PIMCO and PIMCO
Management, Inc.
Dow, Michael Vice President, PIMCO and PIMCO Management, Inc.
Dunn, Anita Vice President, PIMCO and PIMCO Management, Inc.
Edington, David H. Managing Director, PIMCO; Director and Managing
Director, PIMCO Management, Inc.; Director: Stocks
Plus Management, Inc.; Member of PIMCO Partners
LLC.
Ehlert, A. Benjamin Executive Vice President, PIMCO and PIMCO
Management, Inc.
Ettl, Robert A. Vice President, PIMCO and PIMCO Management, Inc.
Faillace, Anthony L. Vice President, PIMCO and PIMCO Management, Inc.
Fitzgerald, Robert M. Chief Financial Officer and Treasurer, PIMCO, PIMCO
Management, Inc., Cadence Capital Management, Inc.,
LIFI Investment Group, NFJ Management, Inc.,
Parametric Portfolio Associates, Parametric
Management Inc., and StocksPLUS Management Inc.;
Assistant Treasurer Cadence Capital Management; Chief
Financial Officer and Treasurer, Columbus Circle
Investors and Columbus Circle Investors Management
Inc.; Chief Financial Officer and Senior Vice
President, PIMCO Advisors; PIMCO Funds Distribution
Company.
Frisch, Orsala T. Vice President, PIMCO
Gross, William H. Managing Director, PIMCO; Director and Managing
Director, PIMCO Management, Inc.; Director and Vice
President, StocksPLUS Management, Inc.; Senior Vice
President of the Trust; Member of Equity and
Operating Boards, PIMCO Advisors; Member of PIMCO
Partners LLC.
Hague, John L. Managing Director, PIMCO; Director and Managing
Director, PIMCO Management, Inc.; Member of PIMCO
Partners LLC.
Hally, Gordon C. Executive Vice President, PIMCO and PIMCO
Management, Inc.
Hamalainen, Pasi M. Senior Vice President, PIMCO and PIMCO Management,
Inc.
- 8 -
<PAGE>
Name Business and Other Connections
- ---- ------------------------------
Hardaway, John P. Vice President, PIMCO and PIMCO Management, Inc.;
Treasurer of the Trust, PIMCO Funds: Multi-Manager
Series; PIMCO Commercial Mortgage Securities Trust,
Inc., and Cash Accumulation Trust.
Harris, Brent R. Managing Director, PIMCO; Director and Managing
Director, PIMCO Management, Inc.; Director and Vice
President, StocksPLUS Management, Inc.; Trustee and
Chairman of the Trust and PIMCO Commercial Mortgage
Securities Trust, Inc.; Member of Operating Board,
PIMCO Advisors; Member of PIMCO Partners LLC.
Hartesohl, Joseph D. Vice President, PIMCO and PIMCO Management, Inc.
Hayes, Raymond C. Vice President, PIMCO and PIMCO Management, Inc.
Hinman, David C. Vice President, PIMCO and PIMCO Management, Inc.
Hocson, Liza Vice President, PIMCO and PIMCO Management, Inc.
Hodge, Douglas M. Executive Vice President, PIMCO and PIMCO
Management, Inc.
Holden, Brent L. Executive Vice President, PIMCO and PIMCO
Management, Inc.
Holloway, Dwight F., Jr. Vice President, PIMCO and PIMCO Management, Inc.
Howe, Jane T. Vice President, PIMCO and PIMCO Management, Inc.
Hudoff, Mark Vice President, PIMCO and PIMCO Management, Inc.
Isberg, Margaret E. Executive Vice President, PIMCO and PIMCO
Management, Inc.; Senior Vice President of the Trust.
Keiler, James M. Vice President, PIMCO and PIMCO Management, Inc.
Kociuba, James Vice President, PIMCO and PIMCO Management, Inc.
Loftus, John S. Executive Vice President, PIMCO and PIMCO
Management, Inc.; Vice President and Assistant
Secretary, StocksPLUS Management, Inc.
Lown, David Vice President, PIMCO and PIMCO Management, Inc.
Meiling, Dean S. Managing Director, PIMCO; Director and Managing
Director, PIMCO Management, Inc.; Vice President of
the Trust and PIMCO Commercial Mortgage Securities
Trust, Inc.; Member of Operating Board, PIMCO
Advisors; Member of PIMCO Partners, LLC.
Muzzy, James F. Managing Director, PIMCO; Director and Managing
Director, PIMCO Management, Inc.; Director and Vice
President, StocksPLUS Management, Inc.; Vice
President of the Trust; Member of Operating Board,
PIMCO Advisors; Member of PIMCO Partners LLC.
Ongaro, Douglas J. Vice President, PIMCO and PIMCO Management, Inc.
Otterbein, Thomas J. Vice President, PIMCO and PIMCO Management, Inc.
- 9 -
<PAGE>
Name Business and Other Connections
- ---- ------------------------------
Podlich, William F. III Managing Director, PIMCO; Director and Managing
Director, PIMCO Management, Inc.; Vice President,
PIMCO Commercial Mortgage Securities Trust, Inc.,
Member of Equity and Operating Boards, PIMCO
Advisors; Member of PIMCO Partners LLC.
Powers, William C. Managing Director, PIMCO; Director and Managing
Director, PIMCO Management, Inc.; Senior Vice
President, PIMCO Commercial Mortgage Securities
Trust, Inc., Member of PIMCO Partners LLC.
Rabinovitch, Frank B. Managing Director, PIMCO; Director and Managing
Director, PIMCO Management, Inc.; Member of PIMCO
Partners LLC.
Rennie, Edward P. Senior Vice President, PIMCO and PIMCO Management,
Inc.
Roney, Scott L. Vice President, PIMCO and PIMCO Management, Inc.
Rosborough, Michael J. Senior Vice President, PIMCO and PIMCO Management,
Inc.
Sargent, Jeffrey M. Vice President, PIMCO, PIMCO Management, Inc., the
Trust, PIMCO Commercial Mortgage Securities Trust,
Inc. and PIMCO Funds: Multi-Manager Series.
Schmider, Ernest L. Executive Vice President, Secretary, Chief
Administrative and Legal Officer, PIMCO and PIMCO
Management, Inc.; Secretary, PIMCO Partners LLC,
Director and Assistant Secretary, Assistant
Treasurer, StocksPLUS Management, Inc.
Scholey, Leland T. Senior Vice President, PIMCO, PIMCO Management, Inc.
and the Trust.
Seliga, Denise C. Vice President, PIMCO and PIMCO Management, Inc.
Seymour, Rita J. Vice President, PIMCO and PIMCO Management, Inc.
Thomas, Lee R. Managing Director, PIMCO; Director, Managing
Director, PIMCO; Director, Managing Director, PIMCO
Management, Inc.
- 10 -
<PAGE>
Name Business and Other Connections
- ---- ------------------------------
Thompson, William S. Chief Executive Officer and Managing Director, PIMCO;
Jr. Director, Managing Director and Chief Executive
Officer, PIMCO Management, Inc.; Director and
President, StocksPLUS Management, Inc.; Vice
President of the Trust and PIMCO Commercial Mortgage
Securities Trust, Inc.; Member of Equity Board and
Operating Committee, and Member of Operating Board,
PIMCO Advisors; Member of PIMCO Partners LLC.
Trosky, Benjamin L. Managing Director, PIMCO; Director, Managing
Director, PIMCO Management, Inc.; Senior Vice
President, PIMCO Commercial Mortgage Securities
Trust, Inc.; Member of Operating Board, PIMCO
Advisors; Member of PIMCO Partners LLC.
Wagner, Teresa A. Vice President, PIMCO, PIMCO Management, Inc., the
Trust, PIMCO Commercial Mortgage Securities Trust,
Inc. and PIMCO Funds: Multi-Manager Series; Vice
President and Assistant Clerk, Cash Accumulation
Trust.
Ward, Andrew C. Vice President, PIMCO and PIMCO Management, Inc.;
Senior Vice President of the Trust.
Weil, Richard M. Assistant Secretary, PIMCO; Senior Vice President,
PIMCO Management, Inc., Columbus Circle Investors,
Columbus Circle Investors Management, Inc., Cadence
Capital Management, Cadence Capital Management, Inc.,
and PIMCO Funds Distribution Company; Secretary, NFJ
Management, Inc., Parametric Management, Inc., NFJ
Investment Group, Parametric Portfolio Associates,
and StocksPLUS Management, Inc.; Vice President,
PIMCO Funds: Multi-Manager Series.
Wegener, Marilyn Vice President, PIMCO and PIMCO Management, Inc.
Willner, Ram Vice President, PIMCO and PIMCO Management, Inc.
Wilsey, Kristen M. Vice President of the Trust, PIMCO and PIMCO
Management, Inc.
Wood, George H. Senior Vice President, PIMCO and PIMCO Management,
Inc.
Yetter, Michael A. Vice President, PIMCO and PIMCO Management, Inc.
The address of PIMCO is 840 Newport Center Drive, Newport Beach, CA 92260.
The address of PIMCO Advisors, L.P. is 800 Newport Center Drive, Newport Beach,
CA 92660.
The address of PIMCO Funds Distribution Company is 2187 Atlantic Street,
Stamford, CT 06902.
- 11 -
<PAGE>
Item 29. Principal Underwriters
----------------------
(a) PIMCO Funds Distribution Company (the "Distributor") serves as
Distributor of Shares of the Trust. The Distributor also acts as
the principal underwriter for PIMCO Funds: Multi-Manager
Series. The Distributor is a wholly-owned subsidiary of PIMCO
Advisors.
(b)
<TABLE>
<CAPTION>
Name and Principal Positions and Offices Positions and Offices
Business Address* with Underwriter with Registrant
- ------------------ --------------------- ---------------------
<S> <C> <C>
Booth, Jeffrey L. Vice President None
Bosch, James D. Regional Vice President None
Cvengros, William D. Director None
Fitzgerald, Robert M. Senior Vice President,
Chief Financial Officer and None
Controller
Gallagher, Michael J. Vice President None
Goldsmith, David S. Vice President
Gray, Ronald H. Vice President None
Hussex, John B. Vice President
Janeczek, Edward W. Senior Vice President None
Jones, Jonathan C. Vice President
Lynch, William E. Senior Vice President None
McCarthy, Jacqueline A. Vice President None
Meyers, Andrew J. Executive Vice President None
Moyer, Fiora H. Regional Vice President None
Neugebauer, Phil J. Vice President None
Pearlman, Joffrey H. Regional Vice President None
</TABLE>
- 12 -
<PAGE>
<TABLE>
<CAPTION>
Name and Principal Positions and Offices Positions and Offices
Business Address* with Underwriter with Registrant
- ------------------ --------------------- ---------------------
<S> <C> <C>
Pisapia, Glynne P. Regional Vice President None
Russell, Matthew M. Vice President None
Schott, Newton B., Jr. Director, Executive Vice None
President/Secretary, Chief
Administrative/Legal Officer
and Secretary
Smith, Robert H. Vice President
Stone, David P. Regional Vice President None
Thomas, William H., Jr. Regional Vice President None
Treadway, Stephen J. Director, Chairman, None
President and Chief
Executive Officer
Troyer, Paul H. Senior Vice President None
Trumbore, Brian F. Executive Vice President None
Vecker, Timothy G. Vice President
Weil, Richard M. Assistant Secretary None
Zimmerman, Glen A. Vice President
- -------------
</TABLE>
* The business address of all directors and officers of the Distributor is
either 2187 Atlantic Street, Stamford, CT 06902 or 800 Newport Center Drive,
Newport Beach, CA 92660.
Item 30. Location of Accounts and Records
--------------------------------
The account books and other documents required to be maintained
by Registrant pursuant to Section 31(a) of the Investment Company
Act of 1940 and the Rules thereunder will be maintained at the
offices of Pacific Investment Management Company, 840 Newport
Center Drive, Newport Beach, California 92660, Investors
Fiduciary Trust Company, 127 West 10th Street, Kansas City,
Missouri 64105, and Shareholder Services, Inc., P.O. Box 5866
Denver, Colorado 80217.
Item 31. Management Services
-------------------
Not applicable
Item 32. Undertakings
------------
(a) Not applicable.
- 13 -
<PAGE>
(b) Registrant undertakes to file a post-effective amendment,
using financial statements which need not be certified,
within four to six months from the latter of the effective
date of a post-effective amendment to Registrant's 1933 Act
registration statement, which provides for the addition of a
new series of Registrant or the date on which shares of such
series are first sold (other than shares sold for seed
money).
(c) Registrant undertakes to furnish to each person to whom a
prospectus is delivered with a copy of Registrant's latest
annual report to shareholders upon request and without
charge.
(d) Registrant undertakes to call a meeting of shareholders for
the purpose of considering the removal of a person serving
as Trustee if requested in writing to do so by the holders
of not less than 10% of the outstanding shares of
Registrant.
- 14 -
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all of
the requirements for effectiveness of this Registration Statement pursuant to
Rule 485(b) under the Securities Act of 1933 and has duly caused this Post-
Effective Amendment No. 34 to its Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of Washington
in the District of Columbia on the 30th day of April, 1997.
PIMCO FUNDS
(Registrant)
By:
-------------------------------------
R. Wesley Burns*++++
President
*By: /s/ Robert W. Helm
-----------------------------------
Robert W. Helm, as attorney-in-fact
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following persons in the
capacities and on the dates indicated:
<TABLE>
<CAPTION>
Signature Title Date
<S> <C> <C>
- -------------------------- Trustee April 30, 1997
Guilford C. Babcock*+
- -------------------------- Trustee April 30, 1997
Thomas P. Kemp*+
- -------------------------- Trustee April 30, 1997
Brent R. Harris*+++
- -------------------------- Trustee April 30, 1997
William J. Popejoy* +++++
- -------------------------- Trustee April 30, 1997
Vern O. Curtis*++++++
- -------------------------- President April 30, 1997
R. Wesley Burns*++++ (Principal
Executive
Officer)
- -------------------------- Treasurer April 30, 1997
John P. Hardaway++* (Principal
Financial
and Accounting
Officer)
</TABLE>
*By: /s/ Robert W. Helm
-------------------
Robert W. Helm,
as attorney-in-fact
<PAGE>
-------------------
+ Pursuant to power of attorney filed with Post-Effective Amendment
No. 1 to Registration Statement No. 33-12113 on November 6, 1987.
++ Pursuant to power of attorney filed with Post-Effective Amendment
No. 10 to Registration Statement No. 33-12113 on May 31, 1991.
+++ Pursuant to power of attorney filed with Post-Effective Amendment
No. 14 to Registration Statement No. 33-12113 on April 28, 1992.
++++ Pursuant to power of attorney filed with Post-Effective Amendment
No. 20 to Registration Statement No. 33-12113 on June 1, 1995.
+++++ Pursuant to power of attorney filed with Post-Effective Amendment
No. 22 to Registration Statement No. 33-12113 on November 30, 1994.
++++++ Pursuant to power of attorney filed with Post-Effective Amendment
No. 23 to Registration Statement No. 33-12113 on June 1, 1995.
<PAGE>
PIMCO Funds
INDEX TO EXHIBITS
FILED WITH
POST-EFFECTIVE AMENDMENT NO. 34
EXHIBIT 11(i) Consent of Price Waterhouse LLP. (EDGAR EXHIBIT
99.B11(i)).
EXHIBIT 11(ii) Consent of Coopers & Lybrand L.L.P. (EDGAR EXHIBIT
99.B11(ii)).
EXHIBIT 17 Financial Data Schedule (EDGAR EXHIBIT 99.B27).
<PAGE>
Consent of Independent Accountants
We hereby consent to the incorporation by reference in the Prospectus and
Statement of Additional Information constituting parts of this Post-Effective
Amendment No. 34 to the registration statement on Form N-1A (the "Registration
Statement") of our report dated May 10, 1996, relating to the financial
statements and financial highlights appearing in the March 31, 1996 Annual
Report to Shareholders of the PIMCO Funds: Pacific Investment Management
Series, which is also incorporated by reference into the Registration Statement.
We also consent to the references to us under the headings "Independent
Accountants" and "Financial Statements" in the Statement of Additional
Information.
/s/Price Waterhouse LLP
Price Waterhouse LLP
Kansas City, Missouri
April 29, 1997
<PAGE>
We consent to the incorporation by reference in this Post-Effective Amendment
No. 34 to the Registration Statement of PIMCO Funds on Form N-1A (File No.
33-12113) of our report dated November 22, 1996 on our audit of the financial
statements and financial highlights of PIMCO Advisors Funds which is included in
the Annual Report of PIMCO Advisors Funds for the year ended September 30, 1996,
which is also incorporated by reference in the Registration Statement.
/s/Coopers & Lybrand L.L.P.
COOPERS & LYBRAND L.L.P.
New York, New York
April 28, 1997
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the PIMCO
Funds semi-annual report dated September 30, 1996 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 011
<NAME> TOTAL RETURN FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 12,591,994
<INVESTMENTS-AT-VALUE> 12,659,993
<RECEIVABLES> 188,072
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 367
<TOTAL-ASSETS> 12,848,432
<PAYABLE-FOR-SECURITIES> 1,293,534
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 45,959
<TOTAL-LIABILITIES> 1,339,493
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 11,589,573
<SHARES-COMMON-STOCK> 1,104,903
<SHARES-COMMON-PRIOR> 996,162
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 18,844
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 219,051
<ACCUM-APPREC-OR-DEPREC> 157,261
<NET-ASSETS> 11,508,939
<DIVIDEND-INCOME> 898
<INTEREST-INCOME> 386,345
<OTHER-INCOME> 0
<EXPENSES-NET> 23,527
<NET-INVESTMENT-INCOME> 363,716
<REALIZED-GAINS-CURRENT> (234,072)
<APPREC-INCREASE-CURRENT> 248,965
<NET-CHANGE-FROM-OPS> 378,609
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 359,779
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 173,911
<NUMBER-OF-SHARES-REDEEMED> 93,436
<SHARES-REINVESTED> 28,266
<NET-CHANGE-IN-ASSETS> 1,156,716
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 15,021
<OVERDISTRIB-NII-PRIOR> 18,792
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 13,578
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 23,527
<AVERAGE-NET-ASSETS> 10,684,363
<PER-SHARE-NAV-BEGIN> 10.29
<PER-SHARE-NII> 0.34
<PER-SHARE-GAIN-APPREC> 0.0
<PER-SHARE-DIVIDEND> 0.34
<PER-SHARE-DISTRIBUTIONS> 0.0
<RETURNS-OF-CAPITAL> 0.0
<PER-SHARE-NAV-END> 10.29
<EXPENSE-RATIO> 0.43
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the PIMCO
Funds semi-annual report dated September 30, 1996 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 012
<NAME> TOTAL RETURN FUND-ADMINISTRATIVE CLASS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 12,591,994
<INVESTMENTS-AT-VALUE> 12,659,993
<RECEIVABLES> 188,072
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 367
<TOTAL-ASSETS> 12,848,432
<PAYABLE-FOR-SECURITIES> 1,293,534
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 45,959
<TOTAL-LIABILITIES> 1,339,493
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 11,589,573
<SHARES-COMMON-STOCK> 13,167
<SHARES-COMMON-PRIOR> 10,170
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 18,844
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 219,051
<ACCUM-APPREC-OR-DEPREC> 157,261
<NET-ASSETS> 11,508,939
<DIVIDEND-INCOME> 898
<INTEREST-INCOME> 386,345
<OTHER-INCOME> 0
<EXPENSES-NET> 23,527
<NET-INVESTMENT-INCOME> 363,716
<REALIZED-GAINS-CURRENT> (234,072)
<APPREC-INCREASE-CURRENT> 248,965
<NET-CHANGE-FROM-OPS> 378,609
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3,989
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 7,148
<NUMBER-OF-SHARES-REDEEMED> 4,532
<SHARES-REINVESTED> 381
<NET-CHANGE-IN-ASSETS> 1,156,716
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 15,021
<OVERDISTRIB-NII-PRIOR> 18,792
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 13,578
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 23,527
<AVERAGE-NET-ASSETS> 119,787
<PER-SHARE-NAV-BEGIN> 10.29
<PER-SHARE-NII> 0.33
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0.33
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.29
<EXPENSE-RATIO> 0.68
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the PIMCO
Funds semi-annual report dated September 30, 1996 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 021
<NAME> LONG-TERM U.S. GOVERNMENT FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 34,764
<INVESTMENTS-AT-VALUE> 34,883
<RECEIVABLES> 559
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 1
<TOTAL-ASSETS> 35,443
<PAYABLE-FOR-SECURITIES> 13,537
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 46
<TOTAL-LIABILITIES> 13,583
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 23,065
<SHARES-COMMON-STOCK> 2,241
<SHARES-COMMON-PRIOR> 3,264
<ACCUMULATED-NII-CURRENT> 236
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 1,624
<ACCUM-APPREC-OR-DEPREC> 183
<NET-ASSETS> 21,860
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,153
<OTHER-INCOME> 0
<EXPENSES-NET> 76
<NET-INVESTMENT-INCOME> 1,077
<REALIZED-GAINS-CURRENT> (748)
<APPREC-INCREASE-CURRENT> (11)
<NET-CHANGE-FROM-OPS> 318
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,077
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 353
<NUMBER-OF-SHARES-REDEEMED> 1,460
<SHARES-REINVESTED> 84
<NET-CHANGE-IN-ASSETS> (10,651)
<ACCUMULATED-NII-PRIOR> 236
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 876
<GROSS-ADVISORY-FEES> 38
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 76
<AVERAGE-NET-ASSETS> 28,919
<PER-SHARE-NAV-BEGIN> 9.96
<PER-SHARE-NII> 0.38
<PER-SHARE-GAIN-APPREC> (0.23)
<PER-SHARE-DIVIDEND> 0.35
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.76
<EXPENSE-RATIO> 0.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the PIMCO
Funds semi-annual report dated September 30, 1996 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 031
<NAME> LOW DURATION FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 3,250,948
<INVESTMENTS-AT-VALUE> 3,254,779
<RECEIVABLES> 76,920
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 9
<TOTAL-ASSETS> 3,331,708
<PAYABLE-FOR-SECURITIES> 633,617
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 8,474
<TOTAL-LIABILITIES> 642,091
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,718,100
<SHARES-COMMON-STOCK> 269,729
<SHARES-COMMON-PRIOR> 269,130
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 5,121
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 31,972
<ACCUM-APPREC-OR-DEPREC> 8,610
<NET-ASSETS> 2,689,617
<DIVIDEND-INCOME> 931
<INTEREST-INCOME> 92,495
<OTHER-INCOME> 0
<EXPENSES-NET> 5,727
<NET-INVESTMENT-INCOME> 87,699
<REALIZED-GAINS-CURRENT> (24,476)
<APPREC-INCREASE-CURRENT> 27,294
<NET-CHANGE-FROM-OPS> 90,517
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 87,596
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 49,744
<NUMBER-OF-SHARES-REDEEMED> 56,732
<SHARES-REINVESTED> 7,587
<NET-CHANGE-IN-ASSETS> 9,507
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 5,120
<OVERDIST-NET-GAINS-PRIOR> 7,496
<GROSS-ADVISORY-FEES> 3,325
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5,727
<AVERAGE-NET-ASSETS> 2,648,559
<PER-SHARE-NAV-BEGIN> 9.95
<PER-SHARE-NII> 0.33
<PER-SHARE-GAIN-APPREC> 0.01
<PER-SHARE-DIVIDEND> 0.33
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.96
<EXPENSE-RATIO> 0.43
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the PIMCO
Funds semi-annual report dated September 30, 1996 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 032
<NAME> LOW DURATION FUND-ADMINISTRATIVE CLASS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 3,250,948
<INVESTMENTS-AT-VALUE> 3,254,779
<RECEIVABLES> 76,920
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 9
<TOTAL-ASSETS> 3,331,708
<PAYABLE-FOR-SECURITIES> 633,617
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 8,474
<TOTAL-LIABILITIES> 642,091
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,718,100
<SHARES-COMMON-STOCK> 395
<SHARES-COMMON-PRIOR> 255
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 5,121
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 31,972
<ACCUM-APPREC-OR-DEPREC> 8,610
<NET-ASSETS> 2,689,617
<DIVIDEND-INCOME> 931
<INTEREST-INCOME> 92,495
<OTHER-INCOME> 0
<EXPENSES-NET> 5,727
<NET-INVESTMENT-INCOME> 87,699
<REALIZED-GAINS-CURRENT> (24,476)
<APPREC-INCREASE-CURRENT> 27,294
<NET-CHANGE-FROM-OPS> 90,517
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 104
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 185
<NUMBER-OF-SHARES-REDEEMED> 55
<SHARES-REINVESTED> 10
<NET-CHANGE-IN-ASSETS> 9,507
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 5,120
<OVERDIST-NET-GAINS-PRIOR> 7,496
<GROSS-ADVISORY-FEES> 3,325
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5,727
<AVERAGE-NET-ASSETS> 3,237
<PER-SHARE-NAV-BEGIN> 9.95
<PER-SHARE-NII> 0.31
<PER-SHARE-GAIN-APPREC> 0.01
<PER-SHARE-DIVIDEND> (0.31)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.96
<EXPENSE-RATIO> 0.68
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the PIMCO
Funds semi-annual report dated September 30, 1996 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 051
<NAME> SHORT-TERM FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 134,627
<INVESTMENTS-AT-VALUE> 134,434
<RECEIVABLES> 1,602
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 136,036
<PAYABLE-FOR-SECURITIES> 5,064
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 413
<TOTAL-LIABILITIES> 5,477
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 130,772
<SHARES-COMMON-STOCK> 12,860
<SHARES-COMMON-PRIOR> 10,257
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 161
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 116
<ACCUM-APPREC-OR-DEPREC> 64
<NET-ASSETS> 130,559
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,799
<OTHER-INCOME> 0
<EXPENSES-NET> 263
<NET-INVESTMENT-INCOME> 3,536
<REALIZED-GAINS-CURRENT> 7
<APPREC-INCREASE-CURRENT> 577
<NET-CHANGE-FROM-OPS> 4,120
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3,434
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 7,839
<NUMBER-OF-SHARES-REDEEMED> 5,543
<SHARES-REINVESTED> 307
<NET-CHANGE-IN-ASSETS> 24,763
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 161
<OVERDIST-NET-GAINS-PRIOR> 123
<GROSS-ADVISORY-FEES> 144
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 263
<AVERAGE-NET-ASSETS> 109,088
<PER-SHARE-NAV-BEGIN> 9.92
<PER-SHARE-NII> 0.30
<PER-SHARE-GAIN-APPREC> 0.05
<PER-SHARE-DIVIDEND> 0.30
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 9.97
<EXPENSE-RATIO> 0.45
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the PIMCO
Funds semi-annual report dated September 30, 1996 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 052
<NAME> SHORT-TERM FUND-ADMINISTRATIVE CLASS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 134,627
<INVESTMENTS-AT-VALUE> 134,434
<RECEIVABLES> 1,602
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 136,036
<PAYABLE-FOR-SECURITIES> 5,064
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 413
<TOTAL-LIABILITIES> 5,477
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 130,772
<SHARES-COMMON-STOCK> 237
<SHARES-COMMON-PRIOR> 403
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 161
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 116
<ACCUM-APPREC-OR-DEPREC> 64
<NET-ASSETS> 130,559
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,799
<OTHER-INCOME> 0
<EXPENSES-NET> 263
<NET-INVESTMENT-INCOME> 3,536
<REALIZED-GAINS-CURRENT> 7
<APPREC-INCREASE-CURRENT> 577
<NET-CHANGE-FROM-OPS> 4,120
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 102
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 474
<NUMBER-OF-SHARES-REDEEMED> 641
<SHARES-REINVESTED> 1
<NET-CHANGE-IN-ASSETS> 24,763
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 161
<OVERDIST-NET-GAINS-PRIOR> 123
<GROSS-ADVISORY-FEES> 144
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 263
<AVERAGE-NET-ASSETS> 3,314
<PER-SHARE-NAV-BEGIN> 9.92
<PER-SHARE-NII> 0.29
<PER-SHARE-GAIN-APPREC> 0.05
<PER-SHARE-DIVIDEND> 0.29
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 9.97
<EXPENSE-RATIO> 0.70
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the PIMCO
Funds semi-annual report dated September 30, 1996 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 061
<NAME> STOCKSPLUS FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 178,943
<INVESTMENTS-AT-VALUE> 179,477
<RECEIVABLES> 6,011
<ASSETS-OTHER> 4
<OTHER-ITEMS-ASSETS> 1
<TOTAL-ASSETS> 185,493
<PAYABLE-FOR-SECURITIES> 3,808
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 385
<TOTAL-LIABILITIES> 4,193
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 170,569
<SHARES-COMMON-STOCK> 15,625
<SHARES-COMMON-PRIOR> 13,607
<ACCUMULATED-NII-CURRENT> 3,709
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,821
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,201
<NET-ASSETS> 181,300
<DIVIDEND-INCOME> 13
<INTEREST-INCOME> 8,732
<OTHER-INCOME> 0
<EXPENSES-NET> 545
<NET-INVESTMENT-INCOME> 8,200
<REALIZED-GAINS-CURRENT> 707
<APPREC-INCREASE-CURRENT> 3,999
<NET-CHANGE-FROM-OPS> 12,906
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 6,253
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,818
<NUMBER-OF-SHARES-REDEEMED> 1,286
<SHARES-REINVESTED> 486
<NET-CHANGE-IN-ASSETS> 29,431
<ACCUMULATED-NII-PRIOR> 1,762
<ACCUMULATED-GAINS-PRIOR> 2,114
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 335
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 545
<AVERAGE-NET-ASSETS> 165,389
<PER-SHARE-NAV-BEGIN> 11.16
<PER-SHARE-NII> 0.53
<PER-SHARE-GAIN-APPREC> 0.33
<PER-SHARE-DIVIDEND> 0.42
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 11.60
<EXPENSE-RATIO> 0.65
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the PIMCO
Funds semi-annual report dated September 30, 1996 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 081
<NAME> INTERNATIONAL FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 2,373,086
<INVESTMENTS-AT-VALUE> 2,380,267
<RECEIVABLES> 283,374
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 5,799
<TOTAL-ASSETS> 2,669,440
<PAYABLE-FOR-SECURITIES> 1,719,938
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 669
<TOTAL-LIABILITIES> 1,720,607
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 836,786
<SHARES-COMMON-STOCK> 109,033
<SHARES-COMMON-PRIOR> 282,404
<ACCUMULATED-NII-CURRENT> 42,949
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 32,493
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 36,605
<NET-ASSETS> 948,833
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 31,556
<OTHER-INCOME> 0
<EXPENSES-NET> 3,220
<NET-INVESTMENT-INCOME> 28,336
<REALIZED-GAINS-CURRENT> 67,834
<APPREC-INCREASE-CURRENT> 11,797
<NET-CHANGE-FROM-OPS> 107,967
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 13,336
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,080
<NUMBER-OF-SHARES-REDEEMED> 179,008
<SHARES-REINVESTED> 1,557
<NET-CHANGE-IN-ASSETS> (1,323,107)
<ACCUMULATED-NII-PRIOR> 27,949
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 35,341
<GROSS-ADVISORY-FEES> 1,609
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3,220
<AVERAGE-NET-ASSETS> 1,345,454
<PER-SHARE-NAV-BEGIN> 8.04
<PER-SHARE-NII> 0.39
<PER-SHARE-GAIN-APPREC> 0.37
<PER-SHARE-DIVIDEND> 0.10
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 8.70
<EXPENSE-RATIO> 0.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the PIMCO
Funds semi-annual report dated September 30, 1996 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 091
<NAME> TOTAL RETURN FUND III
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 169,598
<INVESTMENTS-AT-VALUE> 169,903
<RECEIVABLES> 2,746
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 172,649
<PAYABLE-FOR-SECURITIES> 13,596
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 548
<TOTAL-LIABILITIES> 14,144
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 160,834
<SHARES-COMMON-STOCK> 17,286
<SHARES-COMMON-PRIOR> 15,583
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 380
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 3,785
<ACCUM-APPREC-OR-DEPREC> 1,836
<NET-ASSETS> 158,505
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 5,114
<OTHER-INCOME> 0
<EXPENSES-NET> 380
<NET-INVESTMENT-INCOME> 4,734
<REALIZED-GAINS-CURRENT> (3,568)
<APPREC-INCREASE-CURRENT> 4,469
<NET-CHANGE-FROM-OPS> 5,635
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 4,734
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,535
<NUMBER-OF-SHARES-REDEEMED> 335
<SHARES-REINVESTED> 503
<NET-CHANGE-IN-ASSETS> 16,282
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 380
<OVERDIST-NET-GAINS-PRIOR> 217
<GROSS-ADVISORY-FEES> 190
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 380
<AVERAGE-NET-ASSETS> 150,306
<PER-SHARE-NAV-BEGIN> 9.13
<PER-SHARE-NII> 0.29
<PER-SHARE-GAIN-APPREC> 0.03
<PER-SHARE-DIVIDEND> 0.28
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 9.17
<EXPENSE-RATIO> 0.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the PIMCO
Funds semi-annual report dated September 30, 1996 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 101
<NAME> STRATEGIC BALANCED FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 10,543
<INVESTMENTS-AT-VALUE> 10,607
<RECEIVABLES> 383
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 1
<TOTAL-ASSETS> 10,991
<PAYABLE-FOR-SECURITIES> 603
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 10
<TOTAL-LIABILITIES> 613
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 10,029
<SHARES-COMMON-STOCK> 1,003
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 199
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 101
<ACCUM-APPREC-OR-DEPREC> 251
<NET-ASSETS> 10,378
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 215
<OTHER-INCOME> 0
<EXPENSES-NET> 16
<NET-INVESTMENT-INCOME> 199
<REALIZED-GAINS-CURRENT> (101)
<APPREC-INCREASE-CURRENT> 251
<NET-CHANGE-FROM-OPS> 349
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,003
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 10,378
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 10
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 16
<AVERAGE-NET-ASSETS> 9,997
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.20
<PER-SHARE-GAIN-APPREC> 0.15
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.35
<EXPENSE-RATIO> 0.64
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the PIMCO
Funds semi-annual report dated September 30, 1996 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 111
<NAME> FOREIGN FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 617,898
<INVESTMENTS-AT-VALUE> 622,154
<RECEIVABLES> 45,591
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 725
<TOTAL-ASSETS> 668,470
<PAYABLE-FOR-SECURITIES> 452,989
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 570
<TOTAL-LIABILITIES> 453,559
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 189,839
<SHARES-COMMON-STOCK> 18,879
<SHARES-COMMON-PRIOR> 24,612
<ACCUMULATED-NII-CURRENT> 3,281
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 10,348
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 11,443
<NET-ASSETS> 214,911
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 5,133
<OTHER-INCOME> 0
<EXPENSES-NET> 551
<NET-INVESTMENT-INCOME> 4,582
<REALIZED-GAINS-CURRENT> 13,158
<APPREC-INCREASE-CURRENT> 4,928
<NET-CHANGE-FROM-OPS> 22,668
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 4,582
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5,372
<NUMBER-OF-SHARES-REDEEMED> 11,440
<SHARES-REINVESTED> 335
<NET-CHANGE-IN-ASSETS> (45,582)
<ACCUMULATED-NII-PRIOR> 3,281
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 2,810
<GROSS-ADVISORY-FEES> 276
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 551
<AVERAGE-NET-ASSETS> 228,228
<PER-SHARE-NAV-BEGIN> 10.50
<PER-SHARE-NII> 0.26
<PER-SHARE-GAIN-APPREC> 0.84
<PER-SHARE-DIVIDEND> 0.22
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 11.38
<EXPENSE-RATIO> 0.48
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the PIMCO
Funds semi-annual report dated September 30, 1996 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 121
<NAME> GLOBAL FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 377,119
<INVESTMENTS-AT-VALUE> 378,630
<RECEIVABLES> 31,367
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 404
<TOTAL-ASSETS> 410,401
<PAYABLE-FOR-SECURITIES> 249,209
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 346
<TOTAL-LIABILITIES> 249,555
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 153,500
<SHARES-COMMON-STOCK> 15,343
<SHARES-COMMON-PRIOR> 13,313
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 16
<ACCUMULATED-NET-GAINS> 3,362
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,000
<NET-ASSETS> 160,846
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4,112
<OTHER-INCOME> 0
<EXPENSES-NET> 409
<NET-INVESTMENT-INCOME> 3,703
<REALIZED-GAINS-CURRENT> 3,807
<APPREC-INCREASE-CURRENT> 2,728
<NET-CHANGE-FROM-OPS> 10,238
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3,703
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,295
<NUMBER-OF-SHARES-REDEEMED> 552
<SHARES-REINVESTED> 287
<NET-CHANGE-IN-ASSETS> 27,013
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 16
<OVERDIST-NET-GAINS-PRIOR> 445
<GROSS-ADVISORY-FEES> 186
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 409
<AVERAGE-NET-ASSETS> 148,112
<PER-SHARE-NAV-BEGIN> 10.05
<PER-SHARE-NII> 0.25
<PER-SHARE-GAIN-APPREC> 0.43
<PER-SHARE-DIVIDEND> 0.25
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.48
<EXPENSE-RATIO> 0.55
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the PIMCO
Funds semi-annual report dated September 30, 1996 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 122
<NAME> GLOBAL FUND-ADMINISTRATIVE CLASS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 377,119
<INVESTMENTS-AT-VALUE> 378,630
<RECEIVABLES> 31,367
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 404
<TOTAL-ASSETS> 410,401
<PAYABLE-FOR-SECURITIES> 249,209
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 346
<TOTAL-LIABILITIES> 249,555
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 153,500
<SHARES-COMMON-STOCK> 2
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 16
<ACCUMULATED-NET-GAINS> 3,362
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,000
<NET-ASSETS> 160,846
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4,112
<OTHER-INCOME> 0
<EXPENSES-NET> 409
<NET-INVESTMENT-INCOME> 3,703
<REALIZED-GAINS-CURRENT> 3,807
<APPREC-INCREASE-CURRENT> 2,728
<NET-CHANGE-FROM-OPS> 10,238
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 27,013
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 16
<OVERDIST-NET-GAINS-PRIOR> 445
<GROSS-ADVISORY-FEES> 186
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 409
<AVERAGE-NET-ASSETS> 8
<PER-SHARE-NAV-BEGIN> 10.28
<PER-SHARE-NII> 0.08
<PER-SHARE-GAIN-APPREC> 0.20
<PER-SHARE-DIVIDEND> 0.08
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.48
<EXPENSE-RATIO> 0.80
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the PIMCO
Funds semi-annual report dated September 30, 1996 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 141
<NAME> LOW DURATION FUND II
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 297,893
<INVESTMENTS-AT-VALUE> 297,713
<RECEIVABLES> 11,850
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 1
<TOTAL-ASSETS> 309,564
<PAYABLE-FOR-SECURITIES> 52,416
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 428
<TOTAL-LIABILITIES> 52,844
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 261,571
<SHARES-COMMON-STOCK> 26,207
<SHARES-COMMON-PRIOR> 25,805
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 1,363
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 3,572
<ACCUM-APPREC-OR-DEPREC> 84
<NET-ASSETS> 256,720
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 8,763
<OTHER-INCOME> 0
<EXPENSES-NET> 634
<NET-INVESTMENT-INCOME> 8,129
<REALIZED-GAINS-CURRENT> (2,673)
<APPREC-INCREASE-CURRENT> 2,058
<NET-CHANGE-FROM-OPS> 7,514
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 8,130
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,199
<NUMBER-OF-SHARES-REDEEMED> 3,586
<SHARES-REINVESTED> 789
<NET-CHANGE-IN-ASSETS> 3,421
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 1,362
<OVERDIST-NET-GAINS-PRIOR> 899
<GROSS-ADVISORY-FEES> 317
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 634
<AVERAGE-NET-ASSETS> 252,354
<PER-SHARE-NAV-BEGIN> 9.82
<PER-SHARE-NII> 0.32
<PER-SHARE-GAIN-APPREC> (0.02)
<PER-SHARE-DIVIDEND> 0.32
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 9.80
<EXPENSE-RATIO> 0.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the PIMCO
Funds semi-annual report dated September 30, 1996 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 151
<NAME> MONEY MARKET FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 28,883
<INVESTMENTS-AT-VALUE> 28,883
<RECEIVABLES> 54
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 1
<TOTAL-ASSETS> 28,938
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 626
<TOTAL-LIABILITIES> 626
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 28,312
<SHARES-COMMON-STOCK> 28,300
<SHARES-COMMON-PRIOR> 25,935
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 28,312
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 827
<OTHER-INCOME> 0
<EXPENSES-NET> 53
<NET-INVESTMENT-INCOME> 774
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 774
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 774
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 26,010
<NUMBER-OF-SHARES-REDEEMED> 24,370
<SHARES-REINVESTED> 725
<NET-CHANGE-IN-ASSETS> 2,367
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 23
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 53
<AVERAGE-NET-ASSETS> 29,958
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.03
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> 0.03
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.35
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the PIMCO
Funds semi-annual report dated September 30, 1996 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 152
<NAME> MONEY MARKET FUND-ADMINISTRATIVE CLASS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 28,883
<INVESTMENTS-AT-VALUE> 28,883
<RECEIVABLES> 54
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 1
<TOTAL-ASSETS> 28,938
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 626
<TOTAL-LIABILITIES> 626
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 28,312
<SHARES-COMMON-STOCK> 12
<SHARES-COMMON-PRIOR> 10
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 28,312
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 827
<OTHER-INCOME> 0
<EXPENSES-NET> 53
<NET-INVESTMENT-INCOME> 774
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 774
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4
<NUMBER-OF-SHARES-REDEEMED> 2
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 2,367
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 23
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 53
<AVERAGE-NET-ASSETS> 11
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.02
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> 0.02
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the PIMCO
Funds semi-annual report dated September 30, 1996 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 161
<NAME> TOTAL RETURN FUND II
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 550,483
<INVESTMENTS-AT-VALUE> 552,429
<RECEIVABLES> 13,305
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 546
<TOTAL-ASSETS> 566,280
<PAYABLE-FOR-SECURITIES> 117,401
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,580
<TOTAL-LIABILITIES> 118,981
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 453,942
<SHARES-COMMON-STOCK> 44,943
<SHARES-COMMON-PRIOR> 46,054
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 329
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 10,518
<ACCUM-APPREC-OR-DEPREC> 4,204
<NET-ASSETS> 447,299
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 16,146
<OTHER-INCOME> 0
<EXPENSES-NET> 1,167
<NET-INVESTMENT-INCOME> 14,979
<REALIZED-GAINS-CURRENT> (8,538)
<APPREC-INCREASE-CURRENT> 5,929
<NET-CHANGE-FROM-OPS> 12,370
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 14,854
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,340
<NUMBER-OF-SHARES-REDEEMED> 6,917
<SHARES-REINVESTED> 1,466
<NET-CHANGE-IN-ASSETS> (11,604)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 329
<OVERDIST-NET-GAINS-PRIOR> 1,980
<GROSS-ADVISORY-FEES> 581
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,167
<AVERAGE-NET-ASSETS> 460,457
<PER-SHARE-NAV-BEGIN> 9.89
<PER-SHARE-NII> 0.31
<PER-SHARE-GAIN-APPREC> (0.04)
<PER-SHARE-DIVIDEND> 0.31
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.85
<EXPENSE-RATIO> 0.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the PIMCO
Funds semi-annual report dated September 30, 1996 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 162
<NAME> TOTAL RETURN FUND II-ADMINISTRATIVE CLASS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 550,483
<INVESTMENTS-AT-VALUE> 552,429
<RECEIVABLES> 13,305
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 546
<TOTAL-ASSETS> 566,280
<PAYABLE-FOR-SECURITIES> 117,401
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,580
<TOTAL-LIABILITIES> 118,981
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 453,942
<SHARES-COMMON-STOCK> 453
<SHARES-COMMON-PRIOR> 336
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 329
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 10,518
<ACCUM-APPREC-OR-DEPREC> 4,204
<NET-ASSETS> 447,299
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 16,146
<OTHER-INCOME> 0
<EXPENSES-NET> 1,167
<NET-INVESTMENT-INCOME> 14,979
<REALIZED-GAINS-CURRENT> (8,538)
<APPREC-INCREASE-CURRENT> 5,929
<NET-CHANGE-FROM-OPS> 12,370
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 125
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 108
<NUMBER-OF-SHARES-REDEEMED> 3
<SHARES-REINVESTED> 12
<NET-CHANGE-IN-ASSETS> (11,604)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 329
<OVERDIST-NET-GAINS-PRIOR> 1,980
<GROSS-ADVISORY-FEES> 581
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,167
<AVERAGE-NET-ASSETS> 4,037
<PER-SHARE-NAV-BEGIN> 9.89
<PER-SHARE-NII> 0.30
<PER-SHARE-GAIN-APPREC> (0.04)
<PER-SHARE-DIVIDEND> (0.30)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 9.85
<EXPENSE-RATIO> 0.75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the PIMCO
Funds semi-annual report dated September 30, 1996 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 171
<NAME> HIGH YIELD FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 714,540
<INVESTMENTS-AT-VALUE> 730,590
<RECEIVABLES> 33,661
<ASSETS-OTHER> 2
<OTHER-ITEMS-ASSETS> 1
<TOTAL-ASSETS> 764,254
<PAYABLE-FOR-SECURITIES> 6,325
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 708
<TOTAL-LIABILITIES> 7,033
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 732,838
<SHARES-COMMON-STOCK> 67,899
<SHARES-COMMON-PRIOR> 49,062
<ACCUMULATED-NII-CURRENT> 3,597
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4,661
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 16,125
<NET-ASSETS> 757,221
<DIVIDEND-INCOME> 27
<INTEREST-INCOME> 31,499
<OTHER-INCOME> 0
<EXPENSES-NET> 1,677
<NET-INVESTMENT-INCOME> 29,849
<REALIZED-GAINS-CURRENT> 3,979
<APPREC-INCREASE-CURRENT> 7,810
<NET-CHANGE-FROM-OPS> 41,638
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 29,747
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 22,333
<NUMBER-OF-SHARES-REDEEMED> 6,130
<SHARES-REINVESTED> 2,634
<NET-CHANGE-IN-ASSETS> 219,231
<ACCUMULATED-NII-PRIOR> 3,604
<ACCUMULATED-GAINS-PRIOR> 682
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 836
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,677
<AVERAGE-NET-ASSETS> 659,412
<PER-SHARE-NAV-BEGIN> 10.94
<PER-SHARE-NII> 0.46
<PER-SHARE-GAIN-APPREC> 0.19
<PER-SHARE-DIVIDEND> 0.48
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 11.11
<EXPENSE-RATIO> 0.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the PIMCO
Funds semi-annual report dated September 30, 1996 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 172
<NAME> HIGH YIELD FUND-ADMINISTRATIVE CLASS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 714,540
<INVESTMENTS-AT-VALUE> 730,590
<RECEIVABLES> 33,661
<ASSETS-OTHER> 2
<OTHER-ITEMS-ASSETS> 1
<TOTAL-ASSETS> 764,254
<PAYABLE-FOR-SECURITIES> 6,325
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 708
<TOTAL-LIABILITIES> 7,033
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 732,838
<SHARES-COMMON-STOCK> 273
<SHARES-COMMON-PRIOR> 92
<ACCUMULATED-NII-CURRENT> 3,597
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4,661
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 16,125
<NET-ASSETS> 757,221
<DIVIDEND-INCOME> 27
<INTEREST-INCOME> 31,499
<OTHER-INCOME> 0
<EXPENSES-NET> 1,677
<NET-INVESTMENT-INCOME> 29,849
<REALIZED-GAINS-CURRENT> 3,979
<APPREC-INCREASE-CURRENT> 7,810
<NET-CHANGE-FROM-OPS> 41,638
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 109
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 630
<NUMBER-OF-SHARES-REDEEMED> 456
<SHARES-REINVESTED> 7
<NET-CHANGE-IN-ASSETS> 219,231
<ACCUMULATED-NII-PRIOR> 3,604
<ACCUMULATED-GAINS-PRIOR> 682
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 836
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,677
<AVERAGE-NET-ASSETS> 2,209
<PER-SHARE-NAV-BEGIN> 10.94
<PER-SHARE-NII> 0.45
<PER-SHARE-GAIN-APPREC> 0.19
<PER-SHARE-DIVIDEND> 0.47
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 11.11
<EXPENSE-RATIO> 0.75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE PIMCO
ADVISORS FUNDS ANNUAL REPORT DATED SEPTEMBER 30, 1996 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 181
<NAME> GLOBAL INCOME FUND - CLASS A
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 31,965
<INVESTMENTS-AT-VALUE> 31,998
<RECEIVABLES> 23,346
<ASSETS-OTHER> 44
<OTHER-ITEMS-ASSETS> 5,846
<TOTAL-ASSETS> 61,234
<PAYABLE-FOR-SECURITIES> 27,240
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 19,935
<TOTAL-LIABILITIES> 47,175
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 13,181
<SHARES-COMMON-STOCK> 672
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 589
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 47
<ACCUM-APPREC-OR-DEPREC> 336
<NET-ASSETS> 14,059
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 596
<OTHER-INCOME> 0
<EXPENSES-NET> 157
<NET-INVESTMENT-INCOME> 439
<REALIZED-GAINS-CURRENT> 511
<APPREC-INCREASE-CURRENT> 336
<NET-CHANGE-FROM-OPS> 1,286
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 303
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 803
<NUMBER-OF-SHARES-REDEEMED> 135
<SHARES-REINVESTED> 4
<NET-CHANGE-IN-ASSETS> 14,059
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 74
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 177
<AVERAGE-NET-ASSETS> 6,433
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.32
<PER-SHARE-GAIN-APPREC> 0.95
<PER-SHARE-DIVIDEND> (0.31)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.96
<EXPENSE-RATIO> 1.27
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE PIMCO
ADVISORS FUNDS ANNUAL REPORT DATED SEPTEMBER 30, 1996 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 182
<NAME> GLOBAL INCOME FUND - CLASS B
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 31,965
<INVESTMENTS-AT-VALUE> 31,998
<RECEIVABLES> 23,346
<ASSETS-OTHER> 44
<OTHER-ITEMS-ASSETS> 5,846
<TOTAL-ASSETS> 61,234
<PAYABLE-FOR-SECURITIES> 27,240
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 19,935
<TOTAL-LIABILITIES> 47,175
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 13,181
<SHARES-COMMON-STOCK> 295
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 589
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 47
<ACCUM-APPREC-OR-DEPREC> 366
<NET-ASSETS> 14,059
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 596
<OTHER-INCOME> 0
<EXPENSES-NET> 157
<NET-INVESTMENT-INCOME> 439
<REALIZED-GAINS-CURRENT> 511
<APPREC-INCREASE-CURRENT> 336
<NET-CHANGE-FROM-OPS> 1,286
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 51
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 301
<NUMBER-OF-SHARES-REDEEMED> 9
<SHARES-REINVESTED> 3
<NET-CHANGE-IN-ASSETS> 14,059
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 74
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 177
<AVERAGE-NET-ASSETS> 1,473
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.30
<PER-SHARE-GAIN-APPREC> 0.92
<PER-SHARE-DIVIDEND> 0.26
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.96
<EXPENSE-RATIO> 2.49
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE PIMCO
ADVISORS FUNDS ANNUAL REPORT DATED SEPTEMBER 30, 1996 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 183
<NAME> GLOBAL INCOME FUND - CLASS C
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 31,965
<INVESTMENTS-AT-VALUE> 31,998
<RECEIVABLES> 23,346
<ASSETS-OTHER> 44
<OTHER-ITEMS-ASSETS> 5,846
<TOTAL-ASSETS> 61,234
<PAYABLE-FOR-SECURITIES> 27,240
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 19,935
<TOTAL-LIABILITIES> 47,175
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 13,181
<SHARES-COMMON-STOCK> 316
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 589
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 47
<ACCUM-APPREC-OR-DEPREC> 336
<NET-ASSETS> 14,059
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 596
<OTHER-INCOME> 0
<EXPENSES-NET> 157
<NET-INVESTMENT-INCOME> 439
<REALIZED-GAINS-CURRENT> 511
<APPREC-INCREASE-CURRENT> 336
<NET-CHANGE-FROM-OPS> 1,286
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 54
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 352
<NUMBER-OF-SHARES-REDEEMED> 41
<SHARES-REINVESTED> 5
<NET-CHANGE-IN-ASSETS> 14,059
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 74
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 177
<AVERAGE-NET-ASSETS> 1,578
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.30
<PER-SHARE-GAIN-APPREC> (0.21)
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 11.62
<EXPENSE-RATIO> 2.07
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
