Filed pursuant to Rule 497(k)(1)(i)
Fund Profile
PIMCO Low Duration Fund
Institutional Class Shares
January 15, 1999
P I M C O
F U N D S
This profile summarizes key information about the Fund that is included in the
Fund's Prospectus. The Fund's Prospectus includes additional information about
the Fund, including a more detailed description of the risks associated with
investing in the Fund that you may want to consider before you invest. You may
obtain the Prospectus and other information about the Fund at no cost by calling
us at 1-800-927-4648. See the back cover for additional phone numbers and our
address.
<PAGE>
What is the PIMCO Low Duration Fund's investment objective?
The Fund's investment objective is to maximize total return, consistent with
preservation of capital and prudent investment management. "Total return" means
increases in portfolio value resulting from capital appreciation plus net income
earned on the Fund's investments.
What is the Fund's principal investment strategy?
The Fund normally invests at least 65% of its assets in a diversified portfolio
of fixed income securities of varying maturities. The securities may be issued
by domestic or foreign entities. The Fund may invest all of its assets in
derivative instruments, such as options, futures contracts or swap agreements.
The average portfolio duration of the Fund will normally vary within a one- to
three-year time frame based on the Adviser's forecast for interest rates.
Portfolio holdings will be concentrated in areas of the bond market (based on
quality, sector, coupon or maturity) which the Adviser believes to be relatively
undervalued.
The Fund may invest up to 10% of its assets in fixed income securities that are
rated below investment grade but rated B or higher by Moody's or S&P (or, if
unrated, determined by the Adviser to be of comparable quality). The Fund may
invest up to 20% of its assets in securities denominated in foreign currencies,
and may invest beyond this limit in U.S. dollar-denominated securities of
foreign issuers.
Additional information about the Fund's investments is available in the Fund's
annual and semi-annual reports to shareholders. In the Fund's annual report, you
will find a discussion of the market conditions and investment strategies that
significantly affected the Fund's performance during its past fiscal year. You
may obtain these reports at no cost by calling us.
What are the principal risks of investing in the Fund?
You could lose money on an investment in the Fund. The principal risks of
investing in the Fund are:
o Market risk: the value of the Fund's shares is based on the value of the
bonds and other securities it owns. Bond values fluctuate based on changes
in interest rates, market conditions, investor confidence and announcements
of economic, political or financial information.
o Interest rate risk: if rates rise, the value of the Fund's holdings may
decrease. Derivative instruments may be particularly sensitive to changes
in interest rates.
o Credit risk: an issuer of a security, or a counterparty to a derivative
contract, may default or become unable to meet a financial obligation
thereby decreasing the value of the Fund's holdings. Below investment grade
bonds carry a high degree of credit risk.
o Foreign securities risk: foreign currency exchange rate fluctuations, and
political or economic uncertainty may reduce the value of the Fund's
holdings in foreign securities.
How has the Fund performed?
The bar chart below shows the actual performance of the Fund's Institutional
Class shares net of fees for each of the past ten calendar years. It indicates
the variability of the Fund's historical returns from year to year. The Fund's
past performance does not necessarily indicate how the Fund will perform in the
future.
The following plot points replace a bar chart that appears here in the document:
Calendar Year-By-Year Returns
1998
1997 8.24%
1996 6.14%
1995 11.93%
1994 0.63%
1993 7.76%
1992 7.69%
1991 13.46%
1990 9.05%
1989 11.60%
During the ten-year period shown in the bar chart, the highest quarterly return
was [insert actual]% (for the quarter ended [insert actual]) and the lowest
quarterly return was [insert actual]% (for the quarter ended [insert actual]).
The table below shows how the Fund's average annual returns net of fees for one,
five and ten years and the most recent calendar quarter compare to those of the
Fund's benchmark, the Merrill Lynch 1-3 Year Treasury Index. This is a widely
recognized, unmanaged market index made up of U.S. Treasury issues with
maturities from one to three years.
Average Annual Total Returns
for the years ended December 31, 1998 and most recent calendar quarter
Quarter Ended
12/31/98 1 year 5 Years 10 Years
Low Duration Fund, Institutional Class
Merrill Lynch 1-3 Year Treasury Index
Value added versus Index
What are the Fund's fees and expenses?
Shareholder Fees
The Fund features an all-inclusive fixed fee structure for advisory and
administrative services but not for extraordinary expenses. There are no sales
loads, fees or other charges to purchase the Fund's Institutional Class shares,
to reinvest dividends in additional shares, or to redeem your shares.
Annual Fund Operating Expenses
(expenses that are deducted from Fund assets)
Advisory fee 0.25%
Administrative fee 0.18%
Distribution (12b-1) and/or service fees None
Other expenses (1) 0.00%
Total annual operating expenses 0.43%
___________
(1) Other expenses, which include fees and expenses of the Fund's independent
directors, their legal counsel, interest and extrordinary expenses, were
less than [insert %] for the most recent fiscal year.
Example of hypothetical Fund expenses
An investor would pay the following expenses on a $10,000 investment in the
Fund, assuming (1) a hypothetical 5% annual return, (2) redemption at the end of
each time period and (3) the Fund's operating expenses remain the same:
1 year 3 years 5 years 10 years
Low Duration Fund, Institutional Class 44 138 241 542
Actual expenses may be higher or lower than those shown. Under normal
circumstances, the Fund intends to limit other expenses so as to not affect the
total annual operating expenses.
Who is the Fund's Investment Adviser?
Pacific Investment Management Company ("PIMCO"), a subsidiary of PIMCO Advisors
L.P., serves as investment adviser to the Fund. PIMCO is an investment
management company founded in 1971, and had approximately $148 billion in assets
under management as of September 30, 1998. PIMCO manages the investment and
reinvestment of the assets of the Fund and is responsible for placing orders for
the purchase and sale of the Fund's investments.
[Insert Photo] The Fund's portfolio is managed by William H. Gross.
A Fixed Income Portfolio Manager, Mr. Gross is a Managing
Director and one of the founders of PIMCO. He has managed
the Low Duration Fund since its inception on May 11, 1987.
How do I buy Fund shares?
The minimum initial investment to open an account directly with the Fund is $5
million. The minimum initial investment for a registered investment adviser
purchasing Institutional Class shares for its clients through omnibus accounts
is $250,000. You may purchase Fund shares in one of the following ways:
o Opening an account by completing and signing a Client Registration
Application, mailing it to us, and wiring funds.
o Exchanging Institutional Class shares in any amount from another PIMCO
Funds account.
o Additional purchases can be made by calling us at 1-800-927-4648 and wiring
funds.
How do I sell Fund Shares?
You may sell all or part of your Fund shares to the Fund on any business day.
You may sell by:
o Sending a written request by mail to PIMCO Funds.
o Telephone us at 1-800-927-4648 and a Shareholder Services associate will
assist you.
o By sending a fax to our Shareholder Services department at 1-949-760-4456.
How are Fund distributions made and taxed?
The Fund pays dividends to shareholders monthly and pays realized capital gains,
if any, annually. Dividend and capital gain distributions will be reinvested in
additional shares of the Fund unless you elect to have them paid in cash.
Distributions may be taxable as ordinary income, capital gains, or a combination
of the two. The rate you pay on capital gains distributions may vary depending
on how long the Fund held the securities that generated the gains. The Fund will
advise shareholders annually of the amount and nature of the dividends paid to
them.
Shareholders should also bear in mind that the sale or exchange of shares may
give rise to a taxable event.
What other services are available from the Fund?
The Fund and PIMCO's Shareholder Services offer several programs to investors:
o The ability to exchange shares of the Fund for the same class of shares of
any other PIMCO Fund (except PIMCO International Bond and Emerging Markets
Bond II Funds).
o Account and Fund information is available 24 hours every day through
Infolink, PIMCO Funds' audio response system, by calling 1-800-987-4626.
o Information about PIMCO Funds can be obtained on PIMCO's Institutional Web
site at www.pimco.com.
P I M C O
FUNDS
PIMCO Funds
840 Newport Center Drive, Suite 300
Newport Beach, CA 92660
Telephone: 1-800-927-4648
Fax Number: 1-949-760-4456
PIMCO Infolink Audio Response Network: 1-800-987-4626
Web Site: www.pimco.com
<PAGE>
Filed pursuant to Rule 497(k)(1)(i)
Fund Profile
PIMCO Total Return Fund
Institutional Class Shares
January 15, 1999
P I M C O
F U N D S
This profile summarizes key information about the Fund that is included in the
Fund's Prospectus. The Fund's Prospectus includes additional information about
the Fund, including a more detailed description of the risks associated with
investing in the Fund that you may want to consider before you invest. You may
obtain the Prospectus and other information about the Fund at no cost by calling
us at 1-800-927-4648. See the back cover for additional phone numbers and our
address.
<PAGE>
What is the PIMCO Total Return Fund's investment objective?
The Fund's investment objective is to maximize total return, consistent with
preservation of capital and prudent investment management. "Total return" means
increases in portfolio value resulting from capital appreciation plus net income
earned on the Fund's investments.
What is the Fund's principal investment strategy?
The Fund normally invests at least 65% of its assets in a diversified portfolio
of bonds and other types of fixed income instruments of varying maturities. The
securities may be issued by domestic or foreign entities. The Fund may invest
all of its assets in derivative instruments, such as options, futures contracts
or swap agreements. The average portfolio duration of the Fund will normally
vary within a three- to six-year time frame based on the Adviser's forecast for
interest rates. Portfolio holdings will be concentrated in areas of the bond
market (based on quality, sector, coupon or maturity) which the Adviser believes
to be relatively undervalued.
The Fund may invest up to 10% of its assets in fixed income securities that are
rated below investment grade but rated B or higher by Moody's or S&P (or, if
unrated, determined by the Adviser to be of comparable quality). The Fund may
invest up to 20% of its assets in se7curities denominated in foreign currencies,
and may invest beyond this limit in U.S. dollar-denominated securities of
foreign issuers.
Additional information about the Fund's investments is available in the Fund's
annual and semi-annual reports to shareholders. In the Fund's annual report, you
will find a discussion of the market conditions and investment strategies that
significantly affected the Fund's performance during its past fiscal year. You
may obtain these reports at no cost by calling us.
What are the principal risks of investing in the Fund?
You could lose money on an investment in the Fund. The principal risks of
investing in the Fund are:
o Market risk: the value of the Fund's shares is based on the value of the
bonds and other securities it owns. Bond values fluctuate based on changes in
interest rates, market conditions, investor confidence and announcements of
economic, political or financial information.
o Interest rate risk: if rates rise, the value of the Fund's holdings may
decrease. Derivative instruments may be particularly sensitive to changes in
interest rates.
o Credit risk: an issuer of a security, or a counterparty to a derivative
contract, may default or become unable to meet a financial obligation thereby
decreasing the value of the Fund's holdings. Below investment grade bonds
carry a high degree of credit risk.
o Foreign securities risk: foreign currency exchange rate fluctuations, and
political or economic uncertainty may reduce the value of the Fund's holdings
in foreign securities.
How has the Fund performed?
The bar chart below shows the actual performance of the Fund's Institutional
Class shares net of fees for each of the past ten calendar years. It indicates
the variability of the Fund's historical returns from year to year. The Fund's
past performance does not necessarily indicate how the Fund will perform in the
future.
The following plot points replace a bar chart that appears here in the document:
Calendar Year-By-Year Returns
1998
1997 10.16%
1996 4.69%
1995 19.78%
1994 -3.57%
1993 12.51%
1992 9.74%
1991 19.56%
1990 8.05%
1989 14.24%
During the ten-year period shown in the bar chart, the highest quarterly return
was 8.26% (for the quarter ended June 30, 1989) and the lowest quarterly return
was -2.69% (for the quarter ended March 31, 1994).
The table below shows how the Fund's average annual returns net of fees for one,
five and ten years and the most recent calendar quarter compare to those of the
Fund's benchmark, the Lehman Brothers Aggregate Bond Index. This is a widely
recognized, unmanaged market index representative of the U.S. taxable fixed
income universe.
Average Annual Total Returns
for the years ended December 31, 1998 and most recent calendar quarter
Quarter
Ended
12/31/98 1 Year 5 Years 10 Years
Total Return Fund, Institutional Class
Lehman Brothers Aggregate Bond Index
Value added versus Index
What are the Fund's fees and expenses?
Shareholder Fees
The Fund features an all-inclusive fixed fee structure for advisory and
administrative services but not for extraordinary expenses. There are no sales
loads, fees or other charges to purchase the Fund's Institutional Class shares,
to reinvest dividends in additional shares, or to redeem your shares.
Annual Fund Operating Expenses
(expenses that are deducted from Fund assets)
Advisory fee 0.25%
Administrative fee 0.18%
Distribution (12b-1) and/or service fees None
Other expenses(1) 0.00%
Total annual operating expenses 0.43%
_________________
(1) Other expenses, which include fees and expenses of the Fund's independent
directors, their legal counsel, interest and extraordinary expenses, were
less than [insert %] for the most recent fiscal year.
Example of hypothetical Fund expenses
An investor would pay the following expenses on a $10,000 investment in the
Fund, assuming (1) a hypothetical 5% annual return, (2) redemption at the end of
each time period and (3) the Fund's operating expenses remain the same:
1 year 3 years 5 years 10 years
Total Return Fund, $44 $138 $241 $542
Institutional Class
Actual expenses may be higher or lower than those shown. Under normal
circumstances, the Fund intends to limit other expenses so as to not affect the
total annual operating expenses.
Who is the Fund's Investment Adviser?
Pacific Investment Management Company ("PIMCO"), a subsidiary of PIMCO Advisors
L.P., serves as investment adviser to the Fund. PIMCO is an investment
management company founded in 1971, and had approximately $148 billion in assets
under management as of September 30, 1998. PIMCO manages the investment and
reinvestment of the assets of the Fund and is responsible for placing orders for
the purchase and sale of the Fund's investments.
[Insert Photo] The Fund's portfolio is managed by William H. Gross. A Fixed
Income Portfolio Manager, Mr. Gross is a Managing Director and
one of the founders of PIMCO. He has managed the Total Return
Fund since its inception on May 11, 1987.
How do I buy Fund shares?
The minimum initial investment to open an account directly with the Fund is $5
million. The minimum initial investment for a registered investment adviser
purchasing Institutional Class shares for its clients through omnibus accounts
is $250,000. You may purchase Fund shares in one of the following ways:
o Opening an account by completing and signing a Client Registration
Application, mailing it to us, and wiring funds.
o Exchanging Institutional Class shares in any amount from another PIMCO Funds
account.
o Additional purchases can be made by calling us at 1-800-927-4648 and wiring
funds.
How do I sell Fund Shares?
You may sell all or part of your Fund shares to the Fund on any business day.
You may sell by:
o Sending a written request by mail to PIMCO Funds.
o Telephone us at 1-800-927-4648 and a Shareholder Services associate will
assist you.
o By sending a fax to our Shareholder Services department at 1-949-760-4456.
How are Fund distributions made and taxed?
The Fund pays dividends to shareholders monthly and pays realized capital gains,
if any, annually. Dividend and capital gain distributions will be reinvested in
additional shares of the Fund unless you elect to have them paid in cash.
Distributions may be taxable as ordinary income, capital gains, or a combination
of the two. The rate you pay on capital gains distributions may vary depending
on how long the Fund held the securities that generated the gains. The Fund will
advise shareholders annually of the amount and nature of the dividends paid to
them.
Shareholders should also bear in mind that the sale or exchange of shares may
give rise to a taxable event.
What other services are available from the Fund?
The Fund and PIMCO's Shareholder Services offer several programs to investors:
o The ability to exchange shares of the Fund for the same class of shares of
any other PIMCO Fund (except PIMCO International Bond and Emerging Markets
Bond II Funds).
o Account and Fund information is available 24 hours every day through
Infolink, PIMCO Funds' audio response system, by calling 1-800-987-4626.
o Information about PIMCO Funds can be obtained on PIMCO's Institutional Web
site at www.pimco.com.
P I M C O
F U N D S
PIMCO Funds
840 Newport Center Drive, Suite 300
Newport Beach, CA 92660
Telephone: 1-800-927-4648
Fax Number: 1-949-760-4456
PIMCO Infolink Audio Response Network: 1-800-987-4626
Web Site: www.pimco.com
<PAGE>
Filed pursuant to Rule 497(k)(1)(i)
Fund Profile
PIMCO High Yield Fund
Institutional Class Shares
January 15, 1999
P I M C O
F U N D S
This profile summarizes key information about the Fund that is included in the
Fund's Prospectus. The Fund's Prospectus includes additional information about
the Fund, including a more detailed description of the risks associated with
investing in the Fund that you may want to consider before you invest. You may
obtain the Prospectus and other information about the Fund at no cost by calling
us at 1-800-927-4648. See the back cover for additional phone numbers and our
address.
<PAGE>
What is the PIMCO High Yield Fund's investment objective?
The Fund's investment objective is to maximize total return, consistent with
preservation of capital and prudent investment management. "Total return" means
increases in portfolio value resulting from capital appreciation plus net income
earned on the Fund's investments.
What is the Fund's principal investment strategy?
The Fund normally invests at least 65% of its assets in a diversified portfolio
of fixed income securities rated below investment grade, i.e., lower than Baa by
Moody's or lower than BBB by S&P but rated at least B by Moody's or S&P (or, if
unrated, determined by the Adviser to be of comparable quality). The remainder
of the Fund's assets may be invested in investment grade fixed income
securities. The average portfolio duration of the Fund will normally vary within
a two- to six-year time frame based on the Adviser's forecast for interest
rates. Portfolio holdings will be concentrated in areas of the bond market
(based on quality, sector, coupon or maturity) which the Adviser believes to be
relatively undervalued.
The Fund may invest its assets in securities of foreign issuers, but only those
that are U.S. dollar-denominated. The Fund may invest all of its assets in
derivative instruments, such as options, futures contracts or swap agreements
and may also engage in hedging strategies involving equity options.
Additional information about the Fund's investments is available in the Fund's
annual and semi-annual reports to shareholders. In the Fund's annual report, you
will find a discussion of the market conditions and investment strategies that
significantly affected the Fund's performance during its past fiscal year. You
may obtain these reports at no cost by calling us.
What are the principal risks of investing in the Fund?
You could lose money on an investment in the Fund. The principal risks of
investing in the Fund are:
o Credit risk: an issuer of a security, or a counterparty to a derivative
contract, may default, become bankrupt or become unable to meet a financial
obligation thereby decreasing the value of the Fund's holdings. Risk of
default or bankruptcy may be greater in periods of economic uncertainty or
recession. Securities rated below investment grade carry a high degree of
credit risk.
o Market risk: the value of the Fund's shares is based on the value of the
bonds and other securities it owns. Bond values fluctuate based on changes in
interest rates, market conditions, investor confidence and announcements of
economic, political or financial information.
o Interest rate risk: if rates rise, the value of the Fund's holdings may
decrease. Derivative instruments may be particularly sensitive to changes in
interest rates.
o Foreign securities risk: political or economic uncertainty may reduce the
value of the Fund's holdings in securities of foreign issuers.
How has the Fund performed?
The bar chart below shows the actual performance of the Fund's Institutional
Class shares net of fees for each of the past six calendar years since inception
on December 16, 1992. It indicates the variability of the Fund's historical
returns from year to year. The Fund's past performance does not necessarily
indicate how the Fund will perform in the future.
The following plot points replace a bar chart that appears here in the document:
Calendar Year-By-Year Return
1998
1997 13.21%
1996 11.68%
1995 20.68%
1994 2.40%
1993 18.70%
During the six-year period shown in the bar chart, the highest quarterly return
was [insert actual]% (for the quarter ended [insert actual]) and the lowest
quarterly return was [insert actual]% (for the quarter ended [insert actual]).
The table below shows how the Fund's average annual returns net of fees for the
periods indicated compare to those of the Fund's benchmark, the Lehman Brothers
BB Intermediate Corporate Index. This is a widely recognized, unmanaged market
index comprised of various fixed income securities rated BB.
Average Annual Total Returns
for the years ended December 31, 1998 and most recent calendar quarter
Quarter Since
Ended
12/31/98 1 year 5 Years Inception1(1)
High Yield Fund, Institutional Class
Lehman Brothers BB Intermediate
Corporate Index
Value added versus Index
_________________
(1) Calculated as of January 1, 1993, the first full month following the Fund's
Institutional Class inception on December 16, 1992.
What are the Fund's fees and expenses?
Shareholder Fees
The Fund features an all-inclusive fixed fee structure for advisory and
administrative services but not for extraordinary expenses. There are no sales
loads, fees or other charges to purchase the Fund's Institutional Class shares,
to reinvest dividends in additional shares, or to redeem your shares.
Annual Fund Operating Expenses
(expenses that are deducted from Fund assets)
Advisory fee 0.25%
Administrative fee 0.25%
Distribution (12b-1) and/or service fees None
Other expenses (2) 0.00%
Total annual operating expenses 0.50%
______________
(2) Other expenses, which include fees and expenses of the Fund's independent
directors, their legal counsel, interest and ordinary expenses, were less
than [insert %] for the most recent fiscal year.
Example of hypothetical Fund expenses
An investor would pay the following expenses on a $10,000 investment in the
Fund, assuming (1) a hypothetical 5% annual return, (2) redemption at the end of
each time period and (3) the Fund's operating expenses remain the same:
1 year 3 years 5 years 10 years
High Yield Fund, 51 160 280 628
Institutional Class
Actual expenses may be higher or lower than those shown. Under normal
circumstances, the Fund intends to limit other expenses so as not to affect the
total annual operating expenses.
Who is the Fund's Investment Adviser?
Pacific Investment Management Company ("PIMCO"), a subsidiary of PIMCO Advisors
L.P., serves as investment adviser to the Fund. PIMCO is an investment
management company founded in 1971, and had approximately $148 billion in assets
under management as of September 30, 1998. PIMCO manages the investment and
reinvestment of the assets of the Fund and is responsible for placing orders for
the purchase and sale of the Fund's investments.
[Insert Photo] The Fund's portfolio is managed by Benjamin Trosky. A Fixed
Income Portfolio Manager, Mr. Trosky joined PIMCO in 1990 and
is a Managing Director. He has managed the High Yield Fund
since its inception on December 16, 1992.
How do I buy Fund shares?
The minimum initial investment to open an account directly with the Fund is $5
million. The minimum initial investment for a registered investment adviser
purchasing Institutional Class shares for its clients through omnibus accounts
is $250,000. You may purchase Fund shares in one of the following ways:
o Opening an account by completing and signing a Client Registration
Application, mailing it to us, and wiring funds.
o Exchanging Institutional Class shares in any amount from another PIMCO Funds
account.
o Additional purchases can be made by calling us at 1-800-927-4648 and wiring
funds.
How do I sell Fund Shares?
You may sell all or part of your Fund shares to the Fund on any business day.
You may sell by:
o Sending a written request by mail to PIMCO Funds.
o Telephone us at 1-800-927-4648 and a Shareholder Services associate will
assist you.
o By sending a fax to our Shareholder Services department at 1-949-760-4456.
How are Fund distributions made and taxed?
The Fund pays dividends to shareholders monthly and pays realized capital gains,
if any, annually. Dividend and capital gain distributions will be reinvested in
additional shares of the Fund unless you elect to have them paid in cash.
Distributions may be taxable as ordinary income, capital gains, or a combination
of the two. The rate you pay on capital gains distributions may vary depending
on how long the Fund held the securities that generated the gains. The Fund will
advise shareholders annually of the amount and nature of the dividends paid to
them.
Shareholders should also bear in mind that the sale or exchange of shares may
give rise to a taxable event.
What other services are available from the Fund?
The Fund and PIMCO's Shareholder Services offer several programs to investors:
o The ability to exchange shares of the Fund for the same class of shares of
any other PIMCO Fund (except PIMCO International Bond and Emerging Markets
Bond II Funds).
o Account and Fund information is available 24 hours every day through
Infolink, PIMCO Funds' audio response system, by calling 1-800-987-4626.
o Information about PIMCO Funds can be obtained on PIMCO's Institutional Web
site at www.pimco.com.
P I M C O
F U N D S
PIMCO Funds
840 Newport Center Drive, Suite 300
Newport Beach, CA 92660
Telephone: 1-800-927-4648
Fax Number: 1-949-760-4456
PIMCO Infolink Audio Response Network: 1-800-987-4626
Web Site: www.pimco.com
<PAGE>
Filed pursuant to Rule 497(k)(1)(i)
Fund Profile
PIMCO Foreign Bond Fund
Institutional Class Shares
January 15, 1999
P I M C O
F U N D S
This profile summarizes key information about the Fund that is included in the
Fund's Prospectus. The Fund's Prospectus includes additional information about
the Fund, including a more detailed description of the risks associated with
investing in the Fund that you may want to consider before you invest. You may
obtain the Prospectus and other information about the Fund at no cost by calling
us at 1-800-927-4648. See the back cover for additional phone numbers and our
address.
<PAGE>
What is the PIMCO Foreign Bond Fund's investment objective?
The Fund's investment objective is to maximize total return, consistent with
preservation of capital and prudent investment management. "Total return" means
increases in portfolio value resulting from capital appreciation plus net income
earned on the Fund's investments.
What is the Fund's principal investment strategy?
The Fund invests in a portfolio of fixed income securities primarily denominated
in major foreign currencies and baskets of foreign currencies (such as the
euro). The Fund normally invests at least 85% of its assets in securities of
issuers located outside the United States, representing at least three foreign
countries, which may be represented by futures contracts (including related
options) with respect to such securities, and options on such securities. The
average portfolio duration of the Fund will normally vary within a three- to
seven-year time frame based on the Adviser's forecast for interest rates. The
Adviser will select the Fund's foreign country and currency compositions based
on an evaluation of relative interest rates, exchange rates, monetary and fiscal
policies, trade and current account balances, and any other specific factors the
Adviser believes to be relevant.
The Fund may invest up to 10% of its assets in fixed income securities that are
rated below investment grade but rated B or higher by Moody's or S&P (or, if
unrated, determined by the Adviser to be of comparable quality). The Fund may
invest all of its assets in derivative instruments, such as options, futures
contracts or swap agreements, or in mortgage- or asset-backed securities.
Additional information about the Fund's investments is available in the Fund's
annual and semi-annual reports to shareholders. In the Fund's annual report, you
will find a discussion of the market conditions and investment strategies that
significantly affected the Fund's performance during its past fiscal year. You
may obtain these reports at no cost by calling us.
What are the principal risks of investing in the Fund?
You could lose money on an investment in the Fund. The principal risks of
investing in the Fund are:
o Market risk: the value of the Fund's shares is based on the value of the
bonds and other securities it owns. Bond values fluctuate based on changes
in interest rates, market conditions, investor confidence and announcements
of economic, political or financial information. Because it is
"non-diversified," the portfolio may be more susceptible to risks
associated with a single economic, political or regulatory occurrence than
a diversified portfolio might be.
o Interest rate risk: if rates rise, the value of the Fund's holdings may
decrease. Derivative instruments may be particularly sensitive to changes
in interest rates.
o Credit risk: an issuer of a security, or a counterparty to a derivative
contract, may default or become unable to meet a financial obligation
thereby decreasing the value of the Fund's holdings. Securities rated below
investment grade carry a high degree of credit risk.
o Foreign securities risk: foreign currency exchange rate fluctuations, and
political or economic uncertainty may reduce the value of the Fund's
holdings in foreign securities.
How has the Fund performed?
The bar chart below shows the actual performance of the Fund's Institutional
Class shares net of fees for each of the past six calendar years since inception
on December 3, 1992. It indicates the variability of the Fund's historical
returns from year to year. The Fund's past performance does not necessarily
indicate how the Fund will perform in the future.
The following plot points replace a bar chart that appears here in the document:
Calendar Year-By-Year Return
1998
1997 9.60%
1996 18.89%
1995 21.22%
1994 -7.30%
1993 16.40%
During the six-year period shown in the bar chart, the highest quarterly return
was [insert actual]% (for the quarter ended [insert actual]) and the lowest
quarterly return was [insert actual]% (for the quarter ended [insert actual]).
The table below shows how the Fund's average annual returns net of fees for the
periods indicated compare to those of the Fund's benchmark, the J.P. Morgan Non-
U.S. Index (Hedged). This is a widely recognized, unmanaged market index
representative of the total return performance in U.S. dollars of major non-U.S.
bond markets.
Average Annual Total Returns
for the years ended December 31, 1998 and most recent calendar quarter
Quarter Ended Since
12/31/98 1 year 5 Years Inception(1)
Foreign Bond Fund, Institutional Class
J.P. Morgan Non-U.S. Index (Hedged)
Value added versus Index
___________
(1) Calculated as of January 1, 1993, the first full month following the Fund's
Institutional Class inception on December 3, 1992.
What are the Fund's fees and expenses?
Shareholder Fees
The Fund features an all-inclusive fixed fee structure for advisory and
administrative services but not for extraordinary expenses. There are no sales
loads, fees or other charges to purchase the Fund's Institutional Class shares,
to reinvest dividends in additional shares, or to redeem your shares.
Annual Fund Operating Expenses
(expenses that are deducted from Fund assets)
Advisory fee 0.25%
Administrative fee 0.25%
Distribution (12b-1) and/or service fees None
Other expenses(2) 0.00%
Total annual operating expenses 0.50%
____________
(2) Other expenses, which include fees and expenses of the Fund's independent
directors, their legal counsel, interest and extraordinary expenses, were
less than [insert %] for the most recent fiscal year.
Example of hypothetical Fund expenses
An investor would pay the following expenses on a $10,000 investment in the
Fund, assuming (1) a hypothetical 5% annual return, (2) redemption at the end of
each time period and (3) the Fund's operating expenses remain the same:
1 year 3 years 5 years 10 years
Foreign Bond Fund, Institutional Class 51 160 280 628
Actual expenses may be higher or lower than those shown. Under normal
circumstances, the Fund intends to limit other expenses so as not to affect the
total annual operating expenses.
Who is the Fund's Investment Adviser?
Pacific Investment Management Company ("PIMCO"), a subsidiary of PIMCO Advisors
L.P., serves as investment adviser to the Fund. PIMCO is an investment
management company founded in 1971, and had approximately $148 billion in assets
under management as of September 30, 1998. PIMCO manages the investment and
reinvestment of the assets of the Fund and is responsible for placing orders for
the purchase and sale of the Fund's investments.
[Insert Photo] The Fund's portfolio is managed by Lee R.Thomas, III. A Fixed
Income Portfolio Manager, Mr. Thomas is a Managing Director
and Senior International Portfolio Manager. He has managed
the Foreign Bond Fund since July 13, 1995.
How do I buy Fund shares?
The minimum initial investment to open an account directly with the Fund is $5
million. The minimum initial investment for a registered investment adviser
purchasing Institutional Class shares for its clients through omnibus accounts
is $250,000. You may purchase Fund shares in one of the following ways:
o Opening an account by completing and signing a Client Registration
Application, mailing it to us, and wiring funds. o Exchanging Institutional
Class shares in any amount from another PIMCO Funds account. o Additional
purchases can be made by calling us at 1-800-927-4648 and wiring funds.
How do I sell Fund Shares?
You may sell all or part of your Fund shares to the Fund on any business day.
You may sell by:
o Sending a written request by mail to PIMCO Funds.
o Telephone us at 1-800-927-4648 and a Shareholder Services associate
will assist you.
o By sending a fax to our Shareholder Services department at
1-949-760-4456.
How are Fund distributions made and taxed?
The Fund pays dividends to shareholders monthly and pays realized capital gains,
if any, annually. Dividend and capital gain distributions will be reinvested in
additional shares of the Fund unless you elect to have them paid in cash.
Distributions may be taxable as ordinary income, capital gains, or a combination
of the two. The rate you pay on capital gains distributions may vary depending
on how long the Fund held the securities that generated the gains. The Fund will
advise shareholders annually of the amount and nature of the dividends paid to
them.
Shareholders should also bear in mind that the sale or exchange of shares may
give rise to a taxable event.
What other services are available from the Fund?
The Fund and PIMCO's Shareholder Services offer several programs to investors:
o The ability to exchange shares of the Fund for the same class of shares of
any other PIMCO Fund (except PIMCO International Bond and Emerging Markets
Bond II Funds).
o Account and Fund information is available 24 hours every day through
Infolink, PIMCO Funds' audio response system, by calling 1-800-987-4626.
o Information about PIMCO Funds can be obtained on PIMCO's Institutional Web
site at www.pimco.com.
P I M C O
Funds
PIMCO Funds
840 Newport Center Drive, Suite 300
Newport Beach, CA 92660
Telephone: 1-800-927-4648
Fax Number: 1-949-760-4456
PIMCO Infolink Audio Response Network: 1-800-987-4626
Web Site: www.pimco.com
<PAGE>
Filed pursuant to Rule 497(k)(1)(i)
Fund Profile
PIMCO StocksPLUS Fund
Institutional Class Shares
January 15, 1999
P I M C O
F U N D S
This profile summarizes key information about the Fund that is included in the
Fund's Prospectus. The Fund's Prospectus includes additional information about
the Fund, including a more detailed description of the risks associated with
investing in the Fund that you may want to consider before you invest. You may
obtain the Prospectus and other information about the Fund at no cost by calling
us at 1-800-927-4648. See the back cover for additional phone numbers and our
address.
<PAGE>
What is the PIMCO StocksPLUS Fund's investment objective?
The Fund's investment objective is to achieve a total return which exceeds the
total return performance of the Standard & Poor's 500 Composite Stock Price
Index ("S&P 500"). "Total return" means increases in portfolio value resulting
from capital appreciation plus net income earned on the Fund's investments.
What is the Fund's principal investment strategy?
The Fund normally invests in common stocks, options, futures, options on futures
and swaps. StocksPLUS is the name of a proprietary portfolio management strategy
which uses S&P 500 derivatives in addition to or in place of S&P 500 stocks to
attempt to equal or exceed the performance of the S&P 500. The Adviser expects
to normally invest substantially all of its assets in S&P 500 derivatives,
backed by a portfolio of fixed income instruments. The Adviser will actively
manage the fixed income assets serving as cover for derivatives, as well as any
other fixed income assets held by the portfolio, with a view toward enhancing
the portfolio's total return investment performance, subject to an overall
portfolio duration which is normally not expected to exceed one year.
Assets not invested in equity securities may be invested in a diversified
portfolio of fixed income securities of varying maturities. Portfolio holdings
will be concentrated in areas of the bond market (based on quality, sector,
coupon or maturity) which the Adviser believes to be relatively undervalued. The
Fund may invest up to 10% of its assets in fixed income securities that are
rated below investment grade but rated B or higher by Moody's or S&P (or, if
unrated, determined by the Adviser to be of comparable quality). The Fund may
lend its portfolio securities to brokers, dealers and other financial
institutions in order to earn income. The Fund may invest all of its assets in
derivative instruments, such as options, futures contracts or swap agreements.
The Fund may invest up to 20% of its assets in securities denominated in foreign
currencies, may purchase and sell options and futures on foreign currencies, and
may enter into forward currency contracts.
Additional information about the Fund's investments is available in the Fund's
annual and semi-annual reports to shareholders. In the Fund's annual report, you
will find a discussion of the market conditions and investment strategies that
significantly affected the Fund's performance during its past fiscal year. You
may obtain these reports at no cost by calling us.
What are the principal risks of investing in the Fund?
You could lose money on an investment in the Fund. The principal risks of
investing in the Fund are:
o Market risk: the value of the Fund's shares is based on the value of the
securities it owns. The market value of securities may move up and down,
sometimes rapidly and unpredictably. The value of S&P 500 derivatives will
fluctuate with changes in the market value of S&P 500 stocks. The Fund
could experience greater losses than would be the case if it were to invest
directly in a portfolio of S&P 500 stocks.
o Interest rate risk: if rates rise, the value of the Fund's holdings may
decrease. Derivative instruments may be particularly sensitive to changes
in interest rates.
o Credit risk: an issuer of a security, or a counterparty to a derivative
contract, may default or become unable to meet a financial obligation
thereby decreasing the value of the Fund's holdings. Securities rated below
investment grade carry a high degree of credit risk.
o Foreign securities risk: foreign currency exchange rate fluctuations, and
political or economic uncertainty may reduce the value of the Fund's
holdings in foreign securities.
How has the Fund performed?
The bar chart below shows the actual performance of the Fund's Institutional
Class shares net of fees for each of the past five calendar years since
inception on May 14, 1993. It indicates the variability of the Fund's historical
returns from year to year. The Fund's past performance does not necessarily
indicate how the Fund will perform in the future.
The following plot points replace a bar chart that appears here in the document:
Calendar Year-By-Year Return
1998
1997 32.85%
1996 23.07%
1995 40.51%
1994 2.92%
1993 8.89%*
______________
* The return for 1993 in the above bar chart reflects performance from the
Fund's inception date on May 14, 1993, and is not annualized.
During the five-year period shown in the bar chart, the highest quarterly return
was [insert actual]% (for the quarter ended[insert actual]) and the lowest
quarterly return was [insert actual]% (for the quarter ended [insert actual]).
The table below shows how the Fund's average annual returns net of fees for the
periods indicated compare to those of the Fund's benchmark, the S&P 500 Index.
This is a widely recognized, unmanaged market index generally considered
representative of the stock market as a whole.
Average Annual Total Returns
for the years ended December 31, 1998 and most recent calendar quarter
Quarter Ended Since
12/31/98 1 year 5 Years Inception(1)
StocksPLUS Fund, Institutional Class
S&P 500 Index
Value added versus Index
___________
(1) Calculated as of June 1, 1993, the first full month following the Fund's
Institutional Class inception on May 14, 1993.
What are the Fund's fees and expenses?
Shareholder Fees
The Fund features an all-inclusive fixed fee structure for advisory and
administrative services but not for extraordinary expenses. There are no sales
loads, fees or other charges to purchase the Fund's Institutional Class shares,
to reinvest dividends in additional shares, or to redeem your shares.
Annual Fund Operating Expenses
(expenses that are deducted from Fund assets)
Advisory fee 0.40%
Administrative fee 0.25%
Distribution (12b-1) and/or service fees None
Other expenses(2) 0.00%
Total annual operating expenses 0.65%
_____________
(2) Other expenses, which include fees and expenses of the Fund's
independent directors, their legal counsel, interest and extraordinary
expenses, were less than [insert %] for the most recent fiscal year.
Example of hypothetical Fund expenses
An investor would pay the following expenses on a $10,000 investment in the
Fund, assuming (1) a hypothetical 5% annual return, (2) redemption at the end of
each time period and (3) the Fund's operating expenses remain the same:
1 year 3 years 5 years 10 years
StocksPLUS Fund, Institutional Class 66 208 362 810
Actual expenses may be higher or lower than those shown. Under normal
circumstances, the Fund intends to limit other expenses so as to not affect the
total annual operating expenses.
Who is the Fund's Investment Adviser?
Pacific Investment Management Company ("PIMCO"), a subsidiary of PIMCO Advisors
L.P., serves as investment adviser to the Fund. PIMCO is an investment
management company founded in 1971, and had approximately $148 billion in assets
under management as of September 30, 1998. PIMCO manages the investment and
reinvestment of the assets of the Fund and is responsible for placing orders for
the purchase and sale of the Fund's investments.
[Insert Photo] The Fund's portfolio is managed by a team led by William H.
Gross. A Fixed Income Portfolio Manager, Mr. Gross is a
Managing Director and one of the founders of PIMCO. He has
led the team managing the StocksPLUS Fund since January 6,
1998.
How do I buy Fund shares?
The minimum initial investment to open an account directly with the Fund is $5
million. The minimum initial investment for a registered investment adviser
purchasing Institutional Class shares for its clients through omnibus accounts
is $250,000. You may purchase Fund shares in one of the following ways:
o Opening an account by completing and signing a Client Registration
Application, mailing it to us, and wiring funds.
o Exchanging Institutional Class shares in any amount from another PIMCO
Funds account.
o Additional purchases can be made by calling us at 1-800-927-4648 and wiring
funds.
How do I sell Fund Shares?
You may sell all or part of your Fund shares to the Fund on any business day.
You may sell by:
o Sending a written request by mail to PIMCO Funds.
o Telephone us at 1-800-927-4648 and a Shareholder Services associate will
assist you.
o By sending a fax to our Shareholder Services department at 1-949-760-4456.
How are Fund distributions made and taxed?
The Fund pays dividends to shareholders monthly and pays realized capital gains,
if any, annually. Dividend and capital gain distributions will be reinvested in
additional shares of the Fund unless you elect to have them paid in cash.
Distributions may be taxable as ordinary income, capital gains, or a combination
of the two. The rate you pay on capital gains distributions may vary depending
on how long the Fund held the securities that generated the gains. The Fund will
advise shareholders annually of the amount and nature of the dividends paid to
them.
Shareholders should bear in mind that the sale or exchange of shares may give
rise to a taxable event.
What other services are available from the Fund?
The Fund and PIMCO's Shareholder Services offer several programs to investors:
o The ability to exchange shares of the Fund for the same class of shares of
any other PIMCO Fund (except PIMCO International Bond and Emerging Markets
Bond II Funds).
o Account and Fund information is available 24 hours every day through
Infolink, PIMCO Funds' audio response system, by calling 1-800-987-4626.
o Information about PIMCO Funds can be obtained on PIMCO's Institutional Web
site at www.pimco.com.
P I M C O
FUNDS
PIMCO Funds
840 Newport Center Drive, Suite 300
Newport Beach, CA 92660
Telephone: 1-800-927-4648
Fax Number: 1-949-760-4456
PIMCO Infolink Audio Response Network: 1-800-987-4626
Web Site: www.pimco.com
