PIMCO StocksPLUS Fund
Institutional Class Shares
April 30, 1999
This profile summarizes key information about the Fund that
is included in the Funds Prospectus. The Funds 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.
P I M C O
F U N D S
<PAGE>
WHAT IS THE PIMCO STOCKS PLUS FUNDS INVESTMENT
OBJECTIVE?
The Funds investment objective is to achieve a total return
which exceeds the total return performance of the Standard
& Poors 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
Funds investments.
WHAT IS THE FUNDS 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 portfolios 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. 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 Moodys 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 Funds investments is
available in the Funds annual and semi-annual reports to
shareholders. In the Funds annual report, you will find a
discussion of the market conditions and investment strategies
that significantly affected the Funds 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:
* Market Risk: the value of the Funds 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.
* Interest Rate Risk: if rates rise, the value of the
Funds holdings may decrease. Derivative instruments may
be particularly sensitive to changes in interest rates.
* 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 Funds holdings. Securities rated below investment
grade carry a high degree of credit risk.
* Foreign Securities Risk: in addition to the risks
described above, foreign currency exchange rate
fluctuations, adverse regulatory conditions, foreign taxes,
or political or economic uncertainty may reduce the value
of the Funds holdings in foreign securities.
HOW HAS THE FUND PERFORMED?
The bar chart below shows the actual performance of the
Funds Institutional Class shares net of fees for each of the
calendar years shown. It indicates the variability of the
Funds historical returns from year to year. The Funds past
performance does not necessarily indicate how the Fund will
perform in the future.
[BAR CHART APPEARS HERE]
CALENDAR YEAR-BY-YEAR RETURNS NET OF FEES
1998 28.32%
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 Funds 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
21.44% (for the quarter ended December 31, 1998) and the
lowest quarterly return was -9.77% (for the quarter ended
September 30, 1998). As of March 31, 1999, the end of the
most recent calendar quarter, the Funds year-to-date return
was 4.16%.
PIMCO STOCKS PLUS . INSTITUTIONAL CLASS SHARES
<PAGE>
The table below shows how the Funds average annual
returns net of fees for the periods indicated compare to those
of the Funds 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 Net of Fees
for the periods ended March 31, 1999
Since
1 year 5 years Inception\1\
StocksPLUS Fund,
Institutional Class 17.65% 26.99% 23.05%
S&P 500 Index 18.46% 26.25% 22.38%
\1\ Calculated as of June 1, 1993, the first full month following
the Funds Institutional Class inception on May 14, 1993.
The Funds average annual return for the period from actual
inception on May 14, 1993 through March 31, 1999 was
23.37%.
WHAT ARE THE FUNDS 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 Funds 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, shown as a
percentage of average daily net 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 may include expenses such as fees
and expenses of the Funds independent trustees, interest
expenses, and extraordinary expenses, such as costs of
litigation and indemnification, were less than 0.005%
for the most recent fiscal year.
Example
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 Funds 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 FUNDS 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 over $165 billion
in assets under management as of March 31, 1999. 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 Funds investments.
[PHOTO OF WILLIAM H. GROSS HERE]
The Funds 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 and has managed various PIMCO Funds
since 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:
* Opening an account by completing and signing a
Client Registration Application, mailing it to us, and wiring
funds.
* Exchanging Institutional Class shares in any amount
from another PIMCO Funds account.
* Additional purchases in any amount can be made by
calling us at 1-800-927-4648 and wiring funds.
(Continued on back).
PIMCO STOCKS PLUS FUND . INSTITUTIONAL CLASS SHARES
<PAGE>
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:
* Sending a written request by mail to PIMCO Funds.
* Telephone us at 1-800-927-4648 and a Shareholder
Services associate will assist you.
* By sending a fax to our Shareholder Services
department at 1-949-725-6830.
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 PIMCOs Shareholder Services offer
several programs to investors:
* 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).
* Account and Fund information is available 24 hours
every day through Infolink, PIMCO Funds audio response
system, by calling 1-800-987-4626.
* Information about PIMCO Funds can be obtained on
PIMCOs Institutional Web site at www.pimco.com.
P I M C O
F U N D S
840 Newport Center Drive, Suite 300
Newport Beach, CA 92660
Phone: 1-800-927-4648
Fax: 1-949-725-6830
PIMCO Infolink Audio Response Network:
1-800-987-4626
Web Site: www.pimco.com
PIMCO STOCKS PLUS . INSTITUTIONAL CLAS SHARES
<page break>
PIMCO High Yield Fund
Institutional Class Shares
April 30, 1999
This profile summarizes key information about the Fund that
is included in the Funds Prospectus. The Funds 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.
P I M C O
F U N D S
<PAGE>
WHAT IS THE PIMCO HIGH YIELD FUND'S
INVESTMENT OBJECTIVE?
The Funds 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 Funds investments.
WHAT IS THE FUND'S PRINCIPAL INVESTMENT
STRATEGY?
The Fund normally invests at least 65% of its assets in a
diversified portfolio of high yield fixed income securities
rated below investment grade, i.e., lower than Baa by
Moodys or lower than BBB by S&P but rated at least
B by Moodys or S&P (or, if unrated, determined by the
Adviser to be of comparable quality). The remainder of
the Funds 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 Advisers forecast for interest rates.
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 Funds investments is
available in the Funds annual and semi-annual reports to
shareholders. In the Funds annual report, you will find a
discussion of the market conditions and investment strategies
that significantly affected the Funds 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:
* 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 Funds 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.
* Market Risk: the value of the Funds 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. The value of
a derivative instrument may fluctuate with changes in the
market value of the underlying security.
* Interest Rate Risk: if rates rise, the value of the
Funds holdings will generally decrease. Derivative
instruments may be particularly sensitive to changes
in interest rates.
* Foreign Securities Risk: in addition to the risks
described above, adverse regulatory conditions, foreign
taxes, or political or economic uncertainty may reduce
the value of the Funds holdings in securities of foreign
issuers.
HOW HAS THE FUND PERFORMED?
The bar chart below shows the actual performance of the
Funds Institutional Class shares net of fees for each of the
calendar years shown. It indicates the variability of the
Funds historical returns from year to year. The Funds past
performance does not necessarily indicate how the Fund will
perform in the future.
[BAR CHART APPEARS HERE]
CALENDAR YEAR-BY-YEAR RETURNS NET OF FEES
1998 6.54%
1997 13.21%
1996 11.68%
1995 20.58%
1994 2.40%
1993 18.70%
During the six-year period shown in the bar chart, the highest
quarterly return was 6.27% (for the quarter ended March 31,
1993) and the lowest quarterly return was -1.76% (for the
quarter ended September 30, 1998). As of March 31, 1999,
the end of the most recent calendar quarter, the Funds
year-to-date return was 1.32%.
PIMCO HIGH YIELD FUND . INSTITUTIONAL CLASS SHARES
<PAGE>
The table below shows how the Funds average annual
returns net of fees for the periods indicated compare to those
of the Funds 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 Net of Fees
for the periods ended March 31, 1999
Since
1 year 5 years Inception\1\
High Yield Fund,
Institutional Class 4.73% 10.59% 11.75%
Lehman Brothers BB
Intermediate Corporate
Index 4.39% 8.87% 9.76%
\1\ Calculated as of January 1, 1993, the first full month
following the Funds Institutional Class inception on
December 16, 1992. The Funds average annual return
for the period from actual inception on December 16,
1992 through March 31, 1999 was 11.71%.
WHAT ARE THE FUNDS 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 Funds 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, shown as a
percentage of average daily net 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 may include expenses such as fees
and expenses of the Funds independent trustees, interest
expenses, and extraordinary expenses, such as costs of
litigation and indemnification, were less than 0.005% for the
most recent fiscal year.
Example
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 Funds operating expenses remain the same:
1 year 3 years 5 years 10 years
High Yield 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 FUNDS 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 over $165 billion
in assets under management as of March 31, 1999. 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 Funds investments.
[PHOTO OF BENJAMIN TROSKY APPEARS HERE]
The Funds 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:
* Opening an account by completing and signing a
Client Registration Application, mailing it to us, and
wiring funds.
* Exchanging Institutional Class shares in any amount
from another PIMCO Funds account.
* Additional purchases in any amount can be made by
calling us at 1-800-927-4648 and wiring funds.
(Continued on back).
PIMCO HIGH YIELD FUND . INSTITUTIONAL CLASS SHARES
<PAGE>
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:
* Sending a written request by mail to PIMCO Funds.
* Telephone us at 1-800-927-4648 and a Shareholder
Services associate will assist you.
* By sending a fax to our Shareholder Services
department at 1-949-725-6830.
HOW ARE FUND DISTRIBUTIONS
MADE AND TAXES?
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 PIMCOs Shareholder Services offer several
programs to investors:
* 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).
* Account and Fund information is available 24 hours
every day through Infolink, PIMCO Funds audio
response system, by calling 1-800-987-4626.
* Information about PIMCO Funds can be obtained on
PIMCOs Institutional Web site at www.pimco.com.
P I M C O
F U N D S
840 Newport Center Drive, Suite 300
Newport Beach, CA 92660
Phone: 1-800-927-4648
Fax: 1-949-725-6830
PIMCO Infolink Audio Response Network:
1-800-987-4626
Web Site: www.pimco.com
PIMCO HIGH YIELD FUND . INSTITUTIONAL CLASS SHRES
<page break>
PIMCO Total Return Fund
Institutional Class Shares
April 30, 1999
This profile summarizes key information about the Fund that
is included in the Funds Prospectus. The Funds 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.
P I M C O
F U N D S
<PAGE>
WHAT IS THE PIMCO TOTAL RETURN FUND'S
INVESTMENT OBJECTIVE?
The Funds 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 Funds investments.
What is the Funds 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 Advisers forecast
for interest rates. Investment selections will be made primarily
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 Moodys 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 Funds investments is
available in the Funds annual and semi-annual reports to
shareholders. In the Funds annual report, you will find a
discussion of the market conditions and investment strategies
that significantly affected the Funds 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:
* Market Risk: the value of the Funds 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. The value of a
derivative instrument may fluctuate with changes in the
market value of the underlying security.
* Interest Rate Risk: if rates rise, the value of the Funds
holdings will generally decrease. Derivative instruments
may be particularly sensitive to changes in interest rates.
* 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 Funds holdings. Below investment grade bonds
carry a high degree of credit risk.
* Foreign Securities Risk: in addition to the risks
described above, foreign currency exchange rate
fluctuations, adverse regulatory conditions, foreign
taxes, or political or economic uncertainty may reduce
the value of the Funds holdings in foreign securities.
HOW HAS THE FUND PERFORMED?
The bar chart below shows the actual performance of the
Funds Institutional Class shares net of fees for each of the
calendar years shown. It indicates the variability of the
Funds historical returns from year to year. The Funds
past performance does not necessarily indicate how the
Fund will perform in the future.
[BAR CHART APPEARS HERE]
CALENDAR YEAR-BY-YEAR RETURNS NET OF FEES
1998 9.77%
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). As of March 31, 1999, the
end of the most recent calendar quarter, the Fund's year-to-
date return was -0.40%.
PIMCO TOTAL RETURN FUND . INSTITUTIONAL CLASS SHARES
<PAGE>
The table below shows how the Funds average annual
returns net of fees for the periods indicated compare to
those of the Funds 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 Net of Fees
for the periods ended March 31, 1999
1 year 5 years 10 Years
Total Return Fund,
Institutional Class 7.60% 8.40% 10.13%
Lehman Brothers
Aggregate Bond Index 6.49% 7.79% 9.08%
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 Funds 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, shown as a
percentage of average daily net 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 may include expenses such as fees
and expenses of the Funds independent trustees, interest
expenses, and extraordinary expenses, such as costs of
litigation and indemnification, were less than 0.005%
for the most recent fiscal year.
Example
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 Funds operating expenses remain the same:
1 year 3 years 5 years 10 years
Total Return 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 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 over $165 billion
in assets under management as of March 31, 1999. 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 Funds investments.
[PHOTO OF WILLIAM H. GROSS APPEARS HERE]
The Funds 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:
* Opening an account by completing and signing a
Client Registration Application, mailing it to us, and
wiring funds.
* Exchanging Institutional Class shares in any amount
from another PIMCO Funds account
* Additional purchases in any amount 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:
* Sending a written request by mail to PIMCO Funds.
* Telephone us at 1-800-927-4648 and a Shareholder
Services associate will assist you.
* By sending a fax to our Shareholder Services
department at 1-949-725-6830.
(Continued on back).
PIMCO TOTAL RETURN . INSTITUTIONAL CLASS SHARES
<PAGE>
HOW ARE THE 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 PIMCOs Shareholder Services offer several
programs to investors:
* 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).
* Account and Fund information is available 24 hours
every day through Infolink, PIMCO Funds audio
response system, by calling 1-800-987-4626.
* Information about PIMCO Funds can be obtained on
PIMCOs Institutional Web site at www.pimco.com.
P I M C O
F U N D S
840 Newport Center Drive, Suite 300
Newport Beach, CA 92660
Phone: 1-800-927-4648
Fax: 1-949-725-6830
PIMCO Infolink Audio Response Network:
1-800-987-4626
Web Site: www.pimco.com
PIMCO TOTAL RETURN FUND . INSTITUTIONAL CLASS SHARES
<page break>
PIMCO Low Duration Fund
Institutional Class Shares
April 30, 1999
This profile summarizes key information about the Fund that
is included in the Funds Prospectus. The Funds Prospectus includes
additional information about the Fund, including a more
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.
P I M C O
F U N D S
<PAGE>
WHAT IS THE PIMCO LOW DURATION FUND'
INVESTMENT?
The Funds 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 Funds 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 Advisers forecast for interest rates.
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 Moodys 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 Funds investments is
available in the Funds annual and semi-annual reports to
shareholders. In the Funds annual report, you will find a
discussion of the market conditions and investment strategies
that significantly affected the Funds 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:
* Market Risk: the value of the Funds 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. The value
of a derivative instrument may fluctuate with changes in the
market value of the underlying security.
* Interest Rate Risk: if rates rise, the value of the
Funds holdings will generally decrease. Derivative
instruments may be particularly sensitive to changes
in interest rates.
* 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 Funds holdings. Below investment grade bonds
carry a high degree of credit risk.
* Foreign Securities Risk: in addition to the risks
described above, foreign currency exchange rate
fluctuations, adverse regulatory conditions, foreign
taxes, or political or economic uncertainty may reduce
the value of the Funds holdings in foreign securities.
HOW HAS THE FUND PERFORMED?
The bar chart below shows the actual performance of the
Funds Institutional Class shares net of fees for each of the
calendar years shown. It indicates the variability of the Funds
historical returns from year to year. The Funds past
performance does not necessarily indicate how the Fund will
perform in the future.
[BAR CHART APPEARS HERE]
CALENDAR YEAR-BY-YEAR RETURNS NET OF FEES
1998 7.16%
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 5.52% (for the quarter ended June 30,
1989) and the lowest quarterly return was -0.32% (for the
quarter ended March 31, 1994). As of March 31, 1999, the
end of the most recent calendar quarter, the Fund's year-to-
date return was 0.78%.
PIMCO LOW DURATION FUND . INSTITUTIONAL CLASS SHARES
<PAGE>
The table below shows how the Funds average annual
returns net of fees for the periods indicated compare to
those of the Funds 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 Net of Fees
for the periods ended March 31, 1999
1 year 5 years 10 Years
Low Duration Fund,
Institutional Class 6.35% 6.99% 8.25%
Merrill Lynch 1-3 Year
Treasury Index 6.08% 6.22% 7.30%
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 Funds 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, shown as a
percentage of average daily net 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 may include expenses such as fees
and expenses of the Funds independent trustees, interest
expenses, and extraordinary expenses, such as costs of
litigation and indemnification, were less than 0.005%
for the most recent fiscal year.
Example
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 Funds 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 over $165 billion
in assets under management as of March 31, 1999. 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 Funds investments.
[PHOTO OF WILLIAM H. GROSS APPEARS HERE]
The Funds 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:
* Opening an account by completing and signing a
Client Registration Application, mailing it to us, and
wiring funds.
* Exchanging Institutional Class shares in any amount
from another PIMCO Funds account.
* Additional purchases in any amount 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:
* Sending a written request by mail to PIMCO Funds.
* Telephone us at 1-800-927-4648 and a Shareholder
Services associate will assist you.
* By sending a fax to our Shareholder Services
department at 1-949-725-6830.
(Continued on back).
PIMCO LOW DURATION FUND . INSTITUTIONAL CLASS SHARES
HOW ARE THE 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 PIMCOs Shareholder Services offer several
programs to investors:
* 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).
* Account and Fund information is available 24 hours
every day through Infolink, PIMCO Funds audio
response system, by calling 1-800-987-4626.
* Information about PIMCO Funds can be obtained on
PIMCOs Institutional Web site at www.pimco.com.
P I M C O
F U N D S
840 Newport Center Drive, Suite 300
Newport Beach, CA 92660
Phone: 1-800-927-4648
Fax: 1-949-725-6830
PIMCO Infolink Audio Response Network:
1-800-987-4626
Web Site: www.pimco.com
PIMCO LOW DURATION FUND . INSTITUTIONAL CLASS SHARES
<page break>
PIMCO Foreign Bond Fund
Institutional Class Shares
April 30, 1999
This profile summarizes key information about the Fund that
is included in the Funds Prospectus. The Funds 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.
P I M C O
F U N D S
<PAGE>
WHAT IS THE PIMCO FOREIGN BOND FUND'S
INVESTMENT OBJECTIVE?
The Funds 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 Funds 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 Advisers forecast for interest
rates. The Adviser will select the Funds 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 Moodys 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 Funds investments is
available in the Funds annual and semi-annual reports
to shareholders. In the Funds annual report, you will
find a discussion of the market conditions and
investment strategies that significantly affected the
Funds 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:
* Market Risk: the value of the Funds 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. The value of a derivative instrument may fluctuate with
changes in the market value of the underlying security.
* Interest Rate Risk: if rates rise, the value of the
Funds holdings will generally decrease. Derivative
instruments may be particularly sensitive to changes
in interest rates.
* 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 Funds holdings. Securities rated below
investment grade carry a high degree of credit risk.
* Foreign Securities Risk: in addition to the risks
described above, foreign currency exchange rate
fluctuations, adverse regulatory conditions, foreign
taxes, or political or economic uncertainty may reduce
the value of the Funds holdings in foreign securities.
HOW HAS THE FUND PERFORMED?
The bar chart below shows the actual performance of the
Funds Institutional Class shares net of fees for each of the
calendar years shown. It indicates the variability of the
Funds historical returns from year to year. The Funds past
performance does not necessarily indicate how the Fund
will perform in the future.
[BAR CHART APPEARS HERE]
CALENDAR YEAR-BY-YEAR RETURNS NET OF FEES
1998 10.03%
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 7.23% (for the quarter ended December
31, 1995) and the lowest quarterly return was -4.22% (for the
quarter ended March 31, 1994). As of March 31, 1999, the
end of the most recent calendar quarter, the Fund's
year-to-date return was 1.68%.
PIMCO FOREIGN BOND FUND . INSTITUTIONAL CLASS SHARES
<PAGE>
The table below shows how the Funds average annual
returns net of fees for the periods indicated compare to
those of the Funds 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 Net of Fees
for the periods ended March 31, 1999
Since
1 year 5 years Inception\1\
Foreign Bond Fund,
Institutional Class 7.92% 11.33% 10.88%
J.P. Morgan Non-U.S.
Index (Hedged) 10.59% 10.65% 10.06%
\1\ Calculated as of January 1, 1993, the first full month
following the Funds Institutional Class inception on
December 3, 1992. The Fund's average annual return
for the period from actual inception on December 3,
1992 through March 31, 1999 was 11.01%.
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 Funds 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, shown as a
percentage of average daily net 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 may include expenses such as fees
and expenses of the Funds independent trustees, interest
expenses, and extraordinary expenses, such as costs of
litigation and indemnification, were less than 0.005%
for the most recent fiscal year.
Example
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 Funds 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 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 over $165 billion in
assets under management as of March 31, 1999. 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 Funds investments.
[PHOTO OF LEE R. THOMAS, III APPEARS HERE]
The Funds portfolio is managed by Lee R. Thomas, III. A
Fixed Income Portfolio Manager, Mr. Thomas is a
Managing Director and Senior International Portfolio
Manager and has managed assets for various institutional
accounts for PIMCO since 1995. He has managed the
Foreign Bond Fund since July 13, 1995. Prior to joining
PIMCO in 1995, Mr. Thomas was associated with
Investcorp as a member of the management
committee responsible for global securities and
foreign exchange trading.
HOW DI I BUY FUND SHARES?
The minimum initial investment to open an account directly
with the Fund is $5 million. The minimum initial
nvestment 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:
Opening an account by completing and signing a
Client Registration Application, mailing it to us,
and wiring funds.
* Exchanging Institutional Class shares in any amount
from another PIMCO Funds account.
* Additional purchases in any amount can be made by
calling us at 1-800-927-4648 and wiring funds.
HOW DI 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:
* Sending a written request by mail to PIMCO Funds.
* Telephone us at 1-800-927-4648 and a Shareholder
Services associate will assist you.
* By sending a fax to our Shareholder Services
department at 1-949-725-6830.
(Continued on back).
PIMCO FOREIGN BOND FUND . INSTITUTIONAL CLASS SHARES
<PAGE>
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 PIMCOs Shareholder Services offer several
programs to investors:
* 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).
* Account and Fund information is available 24 hours
every day through Infolink, PIMCO Funds audio
response system, by calling 1-800-987-4626.
* Information about PIMCO Funds can be obtained on
PIMCOs Institutional Web site at www.pimco.com.
P I M C O
F U N D S
840 Newport Center Drive, Suite 300
Newport Beach, CA 92660
Phone: 1-800-927-4648
Fax: 1-949-725-6830
PIMCO Infolink Audio Response Network:
1-800-987-4626
Web Site: www.pimco.com
PIMCO FOREIGN BOND FUND . INSTITUTIONAL CLASS SHARES
