PIMCO FUNDS
497K3B, 2000-08-17
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PIMCO Foreign Bond Fund
Institutional Class Shares
August 17, 2000

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, visiting our Web
site at www.pimco.com, or by contacting your financial
intermediary.

What is the Fund's Investment Objective?

The Fund seeks maximum total return, consistent with
preservation of capital and prudent investment management.


What is the Fund's principal investment strategy?

The Fund seeks to achieve its investment objective by
investing under normal circumstances at least 85% of its
assets in fixed income instruments 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. Such
securities normally are denominated in major foreign
currencies or baskets of foreign currencies (such as
the euro). The Fund will normally hedge at least 75%
of its exposure to foreign currency to reduce the risk
of loss due to fluctuations in currency exchange rates.

PIMCO selects the Fund's foreign country and currency
compositions based on an evaluation of various factors,
including, but not limited to relative interest rates,
exchange rates, monetary and fiscal policies, trade
and current account balances. The average portfolio
duration of the Fund normally varies within a three-
to seven-year time frame. Duration is a measure of the
expected life of a fixed income security that is used
to determine the sensitivity of the security's price to
changes in interest rates.

The Fund invests primarily in investment grade debt
securities, but may invest up to 10% of its assets in
high yield securities ("junk bonds") rated B or higher
by Moody's or S&P, or, if unrated, determined by PIMCO
to be of comparable quality. The Fund is non-diversified,
which means that it may concentrate its assets in a smaller
number of issuers than a diversified Fund.

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. The Fund typically uses derivatives as a
substitute for taking a position in the underlying asset
and/or as part of a strategy designed to reduce exposure
to other risks, such as interest rate or currency risk.
The Fund may lend its portfolio securities to brokers,
dealers and other financial institutions to earn income.
The Fund may seek to obtain market exposure to the
securities in which it primarily invests by entering
into a series of purchase and sale contracts or by using
other investment techniques (such as buybacks or dollar rolls).
The 'total return' sought by the Fund consists of income
earned on the Fund's investments, plus capital appreciation,
if any, which generally arises from decreases in interest
rates or improving credit fundamentals for a particular sector
or security.

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 at 1-800-927-4648.


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:

	Interest Rate Risk: As interest rates rise, the value
of fixed income securities in the Fund's portfolio is likely
to decrease. Securities with longer durations tend to be more
sensitive to changes in interest rates.

	Credit Risk: The Fund could lose money if the issuer
or guarantor of a fixed income security, or the counterparty
to a derivative contract, is unable or unwilling to meet its
financial obligations.

	Market Risk: The value of securities owned by the Fund
may go up or down, sometimes rapidly or unpredictably. Securities
may decline in value due to factors affecting securities markets
generally or particular industries.

	Issuer Risk: The value of a security may decline for
a number of reasons which directly relate to the issuer, such
as management performance, financial leverage and reduced demand
for the issuer's goods or services.

	Foreign Investment Risk: The Fund may experience more
rapid and extreme changes in value than a Fund that invests in
U.S. securities. The securities markets of many foreign countries
are relatively small. Reporting, accounting and auditing standards
of foreign countries differ from U.S. standards. Also,
nationalization, expropriation or confiscatory taxation,
currency blockage, political changes or diplomatic developments
could adversely affect the Fund's investments in a foreign country.

	Currency Risk: When the Fund invests in securities
denominated in foreign currencies, it is subject to the risk
that those currencies will decline in value relative to the U.S.
Dollar, or, in the case of hedging positions, that the U.S. Dollar
will decline in value relative to the currency being hedged.
Currency rates in foreign countries may fluctuate significantly
over short periods of time for reasons such as changes in interest
rates, government intervention or political developments. As a
result, the Fund's investments in foreign currency-denominated
securities may reduce the returns of the Fund.

	Issuer Non-Diversification Risk: Focusing investments
in a small number of issuers, industries or foreign currencies
increases risk. Because the Fund is non-diversified, it may be
more susceptible to risks associated with a single economic,
political or regulatory occurrence than a more diversified
portfolio might be.

	Liquidity Risk: Liquidity risk exists when particular
investments are difficult to purchase or sell. The Fund's
investments in illiquid securities may reduce the returns
of the Fund because it may be unable to sell the illiquid
securities at an advantageous time or price.

	Mortgage Risk: Rising interest rates tend to extend
the duration of mortgage-related securities, making them more
sensitive to changes in interest rates. When interest rates
decline, borrowers may pay off their mortgages sooner than
expected. This can reduce the returns of a Fund because the
Fund will have to reinvest that money at the lower prevailing
interest rates.

	Derivatives Risk: When the Fund invests in a derivative
instrument, it could lose more than the principal amount
invested. Derivatives are subject to a number of risks, such
as liquidity, interest rate, market, credit and management
risk. They also involve the risk of improper valuation.
Changes in the value of a derivative may not correlate
perfectly with the underlying asset, rate or index.

	Leveraging Risk: The Fund may engage in transactions
that give rise to a form of leverage. Leverage may cause the
Fund to sell holdings when it may not be advantageous to do
so. Leverage, including borrowing, may cause the Fund to
be more volatile than if the Fund had not been leveraged.

	Management Risk: There is no guarantee that the
investment techniques and risk analyses applied by PIMCO
will produce the desired results.


How has the Fund performed?

The bar chart and table below provide some indication of
the risks of investing in the Fund by showing changes in
its performance from year to year and by showing how the
Fund's average annual returns compare with the returns of a
broad-based securities market index and an index of similar
funds. The bar chart and table show performance of the Fund's
Institutional Class shares net of fees. Past performance is
no guarantee of future results.

Calendar Year Total Returns

1993	1994	1995	1996	1997	1998	1999
16.40%	-7.30%	21.22%	18.89%	9.60%	10.03%	1.57%

During the period shown in the bar chart, the highest
quarterly return was 7.23% (4th Quarter 1995) and the
lowest quarterly return was -4.22% (1st Quarter 1994).
As of June 30, 2000, the end of the most recent calendar
quarter, the Fund's year-to-date return was 3.84%.
Average Annual Total Returns
for the periods ended June 30, 2000
						Since
				1 year	5 years	Inception3
Foreign Bond Fund,
	Institutional Class	5.31%	11.30%	9.66%
J.P. Morgan Non-U.S.
	Index (Hedged)1		5.58%	10.07%	9.06%
Lipper International Income
	Fund Avg.2		0.45%	3.89%	5.52%
1 The J.P. Morgan Non-U.S. Index (Hedged) in an unmanaged
index representative of the total return performance in U.S.
dollars of major non-U.S. bond markets with an average duration
of 5.74 years as of 6/30/00. It is not possible to invest
directly in the index.
2 The Lipper International Income Fund Average is a
total return performance average of Funds tracked by Lipper
Analytical Services, Inc. that invest primarily in U.S. dollar
and non-U.S. dollar debt securities of issuers located in at
least three countries, excluding the United States, except in
periods of market weakness. It does not take into account
sales charges.
3 The Fund began operations on 12/3/92. Index comparisons
began on 11/30/92.


What are the Fund's Fees and Expenses?

These tables describe the fees and expenses you may pay
if you buy and hold
Institutional Class shares of the Fund:
Shareholder Fees
(fees paid directly from your investment)	None
Annual Fund Operating Expenses
(expenses that are deducted from Fund assets, shown as a
percentage of average daily net assets)
Advisory Fee					0.25%
Distribution (12b-1) and/or Service Fees	None
Other Expenses1					0.44%
Total Annual Operating Expenses			0.69%

1 Other Expenses reflect an Administrative Fee of 0.25% and
interest expense of 0.19% paid during the most recent fiscal
year. Total Annual Operating Expenses excluding interest
expense is 0.50%. Interest expense is generally incurred as
a result of investment management activities.
Example: The Example is intended to help you compare the
cost of investing in the Fund with the costs of investing
in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then
redeem all your shares at the end of those periods. The Example
also assumes a 5% return each year, the reinvestment of all
dividends and distributions, and that the Fund's operating
expenses remain the same. Although your actual costs may be
higher or lower, the Example shows what your costs would be
based on these assumptions.
			1 year	3 years	5 years	10 years
Foreign Bond Fund,
  Institutional Class	$70	$221	$384	$859


Who is the Fund's Investment Adviser?

Pacific Investment Management Company LLC ("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 $199 billion in
assets under management as of June 30, 2000. 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. PIMCO is located at
840 Newport Center Drive, Newport Beach, CA 92660.

The Fund's portfolio is managed by Lee R. Thomas, III.
Mr. Thomas is a Managing Director and Senior International
Portfolio Manager of PIMCO. He joined PIMCO as a Portfolio
Manager in 1995, and has managed fixed income accounts for
various institutional clients and funds since that time.
He has managed the Foreign Bond Fund since July 13, 1995.
Prior to joining PIMCO, he was associated with Investcorp
as a member of the management committee responsible for global
securities and foreign exchange trading.


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 at the
address shown below, and wiring funds. Wiring instructions
can be obtained by calling us at 1-800-927-4648.

	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 (Redeem) Fund Shares?

You may sell (redeem) all or part of your Fund shares
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.
A shareholder may elect to have distributions paid in cash by
calling 1-800-927-4648. 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:

	The ability to exchange shares of the Fund for
the same class of shares of any other PIMCO Fund.

	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
PIMCO's Institutional Web site at www.pimco.com.

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 Shares

August 17, 2000

This profile summarizes key information about the
Fund thatis included in the Fund's Prospectus. The
Fund's Prospectus includesadditional information about
the Fund, including a more detaileddescription of the risks
associated with investing in the Fund that youmay 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, visiting our Web site at www.pimco.com,
or by contacting your financial intermediary.


What is the Fund's Investment Objective?

The Fund seeks maximum total return, consistent with
preservation of capital and prudent investment management.


What is the Fund's principal investment strategy?

The Fund seeks to achieve its investment objective by
investing under normal circumstances at least 65% of
its assets in a diversified portfolio of high yield
securities ('junk bonds') rated below investment grade
but rated at least B by Moody's or S&P, or, if unrated,
determined by PIMCO to be of comparable quality. The
remainder of the Fund's assets may be invested in
investment grade fixed income instruments. The average
portfolio duration of this Fund normally varies within
a two- to six-year time frame based on PIMCO's forecast
for interest rates. Duration is a measure of the expected
life of a fixed income security that is used to determine
the sensitivity of the security's price to changes in
interest rates. The Fund may invest up to 15% of its
assets in euro-denominated securities and may invest
without limit in U.S. dollar-denominated securities of
foreign issuers. The Fund normally will hedge at least
75% of its exposure to the euro to reduce the risk of
loss due to fluctuations in currency exchange rates.

The Fund may invest up to 15% of its assets in derivative
instruments, such as options, futures contracts or swap
agreements. The Fund may invest all of its assets in
mortgage- or asset-backed securities. The Fund typically
uses derivatives as a substitute for taking a position in
the underlying asset and/or as part of a strategy designed to
reduce exposure to other risks, such as interest rate or
currency risk. The Fund may lend its portfolio securities to
brokers, dealers and other financial institutions to earn
income. The Fund may seek to obtain market exposure to the
securities in which it primarily invests by entering into a
series of purchase and sale contracts or by using other
investment techniques (such as buybacks or dollar rolls).
The "total return" sought by the Fund consists of income
earned on the Fund's investments, plus capital appreciation,
if any, which generally arises from decreases in interest
rates or improving credit fundamentals for a particular
sector or security. 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 at 1-800-927-4648.


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:

	Interest Rate Risk: As interest rates rise, the
value of fixed income securities in the Fund's portfolio
is likely to decrease. Securities with longer durations
tend to be more sensitive to changes in interest rates.

	Credit Risk: The Fund could lose money if the issuer
or guarantor of a fixed income security, or the counterparty
to a derivative contract, is unable or unwilling to meet its
financial obligations.

	High Yield Risk: The Fund invests in high yield
securities and unrated securities of similar credit quality
(commonly known as 'junk bonds'), and may be subject to
greater levels of interest rate, credit and liquidity risk
than Funds that do not invest in such securities. High
yield securities are considered predominately speculative
with respect to the issuer's continuing ability to make
principal and interest payments. An economic downturn or
period of rising interest rates could adversely affect
the market for high yield securities and reduce the Fund's
ability to sell its high yield securities (liquidity risk).

	Market Risk: The value of securities owned by the
Fund may go up or down, sometimes rapidly or unpredictably.
Securities may decline in value due to factors affecting
securities markets generally or particular industries.

	Issuer Risk: The value of a security may decline
for a number of reasons which directly relate to the issuer,
such as management performance, financial leverage and reduced
demand for the issuer's goods or services.

	Liquidity Risk: Liquidity risk exists when particular
investments are difficult to purchase or sell. The Fund's
investments in illiquid securities may reduce the returns of
the Fund because it may be unable to sell the illiquid
securities at an advantageous time or price.

	Derivatives Risk: When the Fund invests in a derivative
instrument, it could lose more than the principal amount invested.
Derivatives are subject to a number of risks, such as liquidity,
interest rate, market, credit and management risk. They also
involve the risk of improper valuation. Changes in the value of
a derivative may not correlate perfectly with the underlying asset,
rate or index.

	Mortgage Risk: Rising interest rates tend to extend the
duration of mortgage-related securities, making them more
sensitive to changes in interest rates. When interest rates
decline, borrowers may pay off their mortgages sooner than
expected. This can reduce the returns of a Fund because the
Fund will have to reinvest that money at the lower prevailing
interest rates.

	Foreign Investment Risk: When the Fund invests in
foreign securities, it may experience more rapid and extreme
changes in value than if it invested exclusively in U.S.
securities. The securities markets of many foreign countries
are relatively small. Reporting, accounting and auditing
standards of foreign countries differ from U.S. standards.
Also, nationalization, expropriation or confiscatory taxation,
currency blockage, political changes or diplomatic developments
could adversely affect the Fund's investments in a foreign country.

	Currency Risk: When the Fund invests in securities
denominated in foreign currencies, it is subject to the risk
that those currencies will decline in value relative to the
U.S. Dollar, or, in the case of hedging positions, that the
U.,S. Dollar will decline in value relative to the currency
being hedged. Currency rates in foreign countries may fluctuate
significantly over short periods of time for reasons such as
changes in interest rates, government intervention or political
developments. As a result, the Fund's investments in foreign
currency-denominated securities may reduce the returns of the Fund.

	Leveraging Risk: The Fund may engage in transactions
that give rise to a form of leverage. Leverage may cause the
Fund to sell holdings when it may not be advantageous to do so.
Leverage, including borrowing, may cause the Fund to be more
volatile than if the Fund had not been leveraged.

	Management Risk: There is no guarantee that the investment
techniques and risk analyses applied by PIMCO will produce the
desired results.


How has the Fund performed?

The bar chart and table below provide some indication of the
risks of investing in the Fund by showing changes in its
performance from year to year and by showing how the Fund's
average annual returns compare with the returns of a broad-based
securities market index and an index of similar funds. The bar
chart and table show performance of the Fund's Institutional
Class shares net of fees. Past performance is no guarantee
of future results.


Calendar Year Total Returns

1993	1994	1995	1996	1997	1998	1999
18.70%	2.39%	20.68%	11.68%	13.21%	6.54%	2.82%

During the period shown in the bar chart, the highest
quarterly return was 6.27% (1st Quarter 1993) and the
lowest quarterly return was -1.76% (3rd Quarter 1998).
As of June 30, 2000, the Fund's year-to-date return
was -0.58%.
Average Annual Total Returns
for the periods ended June 30, 2000
						Since
				1 year	5 years	Inception3
High Yield Fund,
	Institutional Class	1.16%	8.29%	9.83%
Lehman Intermediate BB
	rated Corporate Index1	2.68%	7.16%	8.39%
Lipper High Current Yield
	Fund Avg.2		-0.77%	6.42%	7.68%

1 The Lehman Brothers Intermediate BB rated Corporate Index
is an unmanaged index comprised of various fixed income
securities rated BB with an average duration of 4.32
years as of 6/30/00. It is not possible to invest
directly in the index. 2 The Lipper High Current
Yield Fund Average is a total return performance average
of Funds tracked by Lipper Analytical Services, Inc. that
aim at high (relative) current yield from fixed income
securities, have no quality or maturity restrictions,
and tend to invest in lower grade debt issues. It does
not take into account sales charges.
3 The Fund began operations on 12/16/92. Index comparisons
began on 12/31/92.


What are the Fund's Fees and Expenses?

These tables describe the fees and expenses you may pay
if you buy and hold Institutional Class shares of the Fund:

Shareholder Fees
(fees paid directly from your investment)	None
Annual Fund Operating Expenses
(expenses that are deducted from Fund assets, shown as
a percentage of average daily net assets)
Advisory Fee					0.25%
Distribution (12b-1) and/or Service Fees	None
Other Expenses1					0.25%
Total Annual Operating Expenses			0.50%

1 Other Expenses reflect a 0.25% Administrative Fee paid
by the class. Example: The Example is intended to help you
compare the cost of investing in the Fund with the costs of
investing in other mutual funds. The Example assumes that
you invest $10,000 in the Fund for the time periods indicated,
and then redeem all your shares at the end of those periods.
The Example also assumes a 5% return each year, the reinvestment
of all dividends and distributions, and that the Fund's operating
expenses remain the same. Although your actual costs may be higher
or lower, the Example shows what your costs would be based on
these assumptions.
			1 year	3 years	5 years	10 years
High Yield Fund,
Institutional Class	$51	$160	$280	$628



Who is the Fund's Investment Adviser?

Pacific Investment Management Company LLC ('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 $199 billion in assets
under management as of June 30, 2000. 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. PIMCO is located at 840 Newport
Center Drive, Newport Beach, CA 92660.

The Fund's portfolio is managed by Benjamin Trosky.
Mr. Trosky is a Managing Director of PIMCO. He joined
PIMCO as a Portfolio Manager in 1990, and has managed fixed
income accounts for various institutional clients and funds
since that time. He has managed the High Yield Fund since
December 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 at the
address shown below, and wiring funds. Wiring instructions
can be obtained by calling us at 1-800-927-4648.

	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 (Redeem) Fund Shares?

You may sell (redeem) all or part of your Fund shares
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.
A shareholder may elect to have distributions paid in cash by
calling 1-800-927-4648. 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:

	The ability to exchange shares of the Fund for the
same class of shares of any other PIMCO Fund.

	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
PIMCO's Institutional Web site at www.pimco.com.

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

August 17, 2000

This profile summarizes key information about the Fund
thatis included in the Fund's Prospectus. The Fund's
Prospectus includesadditional 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 bycalling
us at 1-800-927-4648, visiting our Web site at www.pimco.com,
or by contacting your financial intermediary.


What is the Fund's Investment Objective?

The Fund seeks maximum total return, consistent with
preservation of capital and prudent investment management.


What is the Fund's principal investment strategy?

The Fund seeks to achieve its investment objective by
investing under normal circumstances at least 65% of its
assets in a diversified portfolio of fixed income instruments
of varying maturities. The average portfolio duration of this
Fund normally varies within a one- to three-year time frame
based on PIMCO's forecast for interest rates.  Duration is a
measure of the expected life of a fixed income security that
is used to determine the sensitivity of the security's price
to changes in interest rates.

The Fund invests primarily in investment grade debt securities,
but may invest up to 10% of its assets in high yield
securities ("junk bonds") rated B or higher by Moody's
or S&P, or, if unrated, determined by PIMCO 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. The Fund will normally hedge
at least 75% of its exposure to foreign currency to reduce
the risk of loss due to fluctuations in currency exchange rates.

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. The Fund typically uses
derivatives as a substitute for taking a position in the
underlying asset and/or as part of a strategy designed to reduce
exposure to other risks, such as interest rate or currency risk.
The Fund may lend its portfolio securities to brokers, dealers
and other financial institutions to earn income. The Fund may
seek to obtain market exposure to the securities in which it
primarily invests by entering into a series of purchase
and sale contracts or by using other investment techniques
(such as buybacks or dollar rolls). The "total return" sought
by the Fund consists of income earned on the Fund's investments,
plus capital appreciation, if any, which generally arises from
decreases in interest rates or improving credit fundamentals for
a particular sector or security.

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 at 1-800-927-4648.


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:

	Interest Rate Risk: As interest rates rise, the
value of fixed income securities in the Fund's portfolio
is likely to decrease.  Securities with longer durations
tend to be more sensitive to changes in interest rates.

	Credit Risk: The Fund could lose money if the issuer
or guarantor of a fixed income security, or the counterparty
to a derivative contract, is unable or unwilling to meet its
financial obligations.

	Market Risk: The value of securities owned by the Fund
may go up or down, sometimes rapidly or unpredictably. Securities
may decline in value due to factors affecting securities markets
generally or particular industries.

	Issuer Risk: The value of a security may decline for a
number of reasons which directly relate to the issuer, such as
management performance, financial leverage and reduced demand
for the issuer's goods or services.

	Derivatives Risk: When the Fund invests in a derivative
instrument, it could lose more than the principal amount invested.
Derivatives are subject to a number of risks, such as liquidity,
interest rate, market, credit and management risk. They also
involve the risk of improper valuation. Changes in the value of
a derivative may not correlate perfectly with the underlying asset,
rate or index.

	Liquidity Risk: Liquidity risk exists when particular
investments are difficult to purchase or sell. The Fund's
investments in illiquid securities may reduce the returns of
the Fund because it may be unable to sell the illiquid
securities at an advantageous time or price.

	Mortgage Risk: Rising interest rates tend to extend
the duration of mortgage-related securities, making them more
sensitive to changes in interest rates. When interest rates
decline, borrowers may pay off their mortgages sooner than
expected. This can reduce the returns of a Fund because the
Fund will have to reinvest that money at the lower prevailing
interest rates.

	Foreign Investment Risk: When the Fund invests in
foreign securities, it may experience more rapid and extreme
changes in value than if it invested exclusively in U.S.
securities. The securities markets of many foreign countries
are relatively small. Reporting, accounting and auditing
standards of foreign countries differ from U.S. standards.
Also, nationalization, expropriation or confiscatory taxation,
currency blockage, political changes or diplomatic developments
could adversely affect the Fund's investments in a foreign country.

	Currency Risk: When the Fund invests in securities
denominated in foreign currencies, it is subject to the risk
that those currencies will decline in value relative to the
U.S. Dollar, or, in the case of hedging positions, that the
U.S. Dollar will decline in value relative to the currency
being hedged. Currency rates in foreign countries may
fluctuate significantly over short periods of time for
reasons such as changes in interest rates, government
intervention or political developments. As a result,
the Fund's investments in foreign currency-denominated
securities may reduce the returns of the Fund.

	Leveraging Risk: The Fund may engage in transactions
that give rise to a form of leverage. Leverage may cause the
Fund to sell holdings when it may not be advantageous to do
so. Leverage, including borrowing, may cause the Fund to
be more volatile than if the Fund had not been leveraged.

	Management Risk: There is no guarantee that the
investment techniques and risk analyses applied by PIMCO
will produce the desired results.


How has the Fund performed?

The bar chart and table below provide some indication of
the risks of investing in the Fund by showing changes in
its performance from year to year and by showing how the
Fund's average annual returns compare with the returns of
a broad-based securities market index and an index of similar
funds. The bar chart and table show performance of the Fund's
Institutional Class shares net of fees. Past performance is
no guarantee of future results.


Calendar Year Total Returns

1990  1991   1992  1993	 1994  1995   1996  1997  1998  1999
9.05% 13.46% 7.69% 7.76% 0.63% 11.93% 6.14% 8.24% 7.16% 2.97%

During the period shown in the bar chart, the highest
quarterly return was 3.90% (3rd Quarter 1991) and the
lowest quarterly return was -0.32% (1st Quarter 1994).
As of June 30, 2000, the Fund's year-to-date return was
3.13%.
Average Annual Total Returns
for the periods ended June 30, 2000

				1 year	5 years	10 years
Low Duration Fund,
	Institutional Class	5.08%	6.59%	7.36%
Merrill Lynch 1-3 Year
	Treasury Index1		4.91%	5.76%	6.51%
Lipper Short Investment
	Grade Debt Fund Avg.2	4.40%	5.28%	6.29%

1 The Merrill Lynch 1-3 Year Treasury Index is an unmanaged
index of U.S Treasury obligations having maturities from
one to 2.99 years. It is not possible to invest directly
in the index.
2 The Lipper Short Investment Grade Debt Fund Average
is a total return performance average of Funds tracked
by Lipper Analytical Services, Inc. that invest at least
65% of their assets in investment-grade debt issues (rated
in the top four grades) with dollar-weighted average
maturities of less than three years. It does not take
into account sales charges.


What are the Fund's Fees and Expenses?

These tables describe the fees and expenses you may
pay if you buy and hold Institutional Class shares of
the Fund:

Shareholder Fees
(fees paid directly from your investment)	None
Annual Fund Operating Expenses
(expenses that are deducted from Fund assets, shown as a
percentage of average daily net assets)
Advisory Fee					0.25%
Distribution (12b-1) and/or Service Fees	None
Other Expenses1					0.26%
Total Annual Operating Expenses			0.51%

1 Other Expenses reflect an Administrative Fee of 0.18%
and interest expense of 0.08% paid during the most recent
fiscal year. Total Annual Operating Expenses excluding
interest expense is 0.43%. Interest expense is generally
incurred as a result of investment management activities.

Example: The Example is intended to help you compare the
cost of investing in the Fund with the costs of investing
in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then
redeem all your shares at the end of those periods. The
Example also assumes a 5% return each year, the reinvestment
of all dividends and distributions, and that the Fund's
operating expenses remain the same. Although your actual
costs may be higher or lower, the Example shows what your
costs would be based on these assumptions.
				1 year	3 years	5 years	10 years
Low Duration Fund,
	Institutional Class	$52	$164	$285	$640


Who is the Fund's Investment Adviser?

Pacific Investment Management Company LLC ('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 $199 billion in
assets under management as of June 30, 2000. 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. PIMCO is located at
840 Newport Center Drive, Newport Beach, CA 92660.

The Fund's portfolio is managed by William H. Gross. A
Fixed Income Portfolio Manager, Mr. Gross is a Managing
Director, Chief Investment Officer and a founding partner
of PIMCO. He has managed the Low Duration Fund since its
inception in May 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
at the address shown below, and wiring funds. Wiring
instructions can be obtained by calling us at 1-800-927-4648.

	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 (Redeem) Fund Shares?

You may sell (redeem) all or part of your Fund shares 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. A shareholder may elect to have distributions paid
in cash by calling 1-800-927-4648. 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:

	The ability to exchange shares of the Fund for
the same class of shares of any other PIMCO Fund.

	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 PIMCO's Institutional Web site at www.pimco.com.

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 Municipal Bond Fund
Institutional Class Shares

August 17, 2000

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,
visiting our Web site at www.pimco.com, or by contacting
your financial intermediary.


What is the Fund's Investment Objective?

The Fund seeks high current income exempt from federal
income tax, consistent with preservation of capital.
Capital appreciation is a secondary objective.


What is the Fund's principal investment strategy?

The Fund seeks to achieve its investment objective by
investing under normal circumstances at least 80% of
its net assets in debt securities whose interest is,
in the opinion of bond counsel for the issuer at the
time of issuance, exempt from federal income tax
('Municipal Bonds'). Municipal Bonds generally are
issued by or on behalf of states and local governments
and their agencies, authorities and other instrumentalities.

The Fund may invest up to 20% of its net assets in U.S.
Government securities, money market instruments and/or
'private activity' bonds. For shareholders subject to
the federal alternative minimum tax ('AMT'), distributions
derived from 'private activity' bonds must be included in
their AMT calculations, and as such a portion of the Fund's
distribution may be subject to federal income tax. The Fund
invests primarily in investment grade debt securities, but
may invest up to 10% of its net assets in Municipal Bonds
or 'private activity' bonds which are high yield securities
('junk bonds') rated at least Ba by Moody's or BB by S&P, or,
if unrated, determined by PIMCO to be of comparable quality.
The Fund may invest more than 25% of its assets in bonds of
issuers in California and New York. To the extent that the
Fund concentrates its investments in California and New York,
it will be subject to California and New York State Specific
Risk. The average portfolio duration of the Fund normally
varies within a three- to ten-year time frame, based on
PIMCO's forecast for interest rates. Duration is a measure
of the expected life of a fixed income security that is used
to determine the sensitivity of the security's price to
changes in interest rates.

The Fund will seek income that is high relative to
prevailing rates from Municipal Bonds. Capital appreciation,
if any, generally arises from decreases in interest rates
or improving credit fundamentals for a particular state,
municipality or issuer.

The Fund may invest in derivative instruments, such as
options, futures contracts, or swap agreements on U.S.
Government securities and municipal bonds, and invest
in mortgage- or asset-backed securities. The Fund may
lend its portfolio securities to brokers, dealers and
other financial institutions to earn income. The Fund
may seek to obtain market exposure to the securities in
which it primarily invests by entering into a series
of purchase and sale contracts or by using other investment
techniques (such as buybacks or dollar rolls).

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 at 1-800-927-4648.


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:

	Interest Rate Risk: As interest rates rise, the
value of fixed income securities in the Fund's portfolio
is likely to decrease. Securities with longer durations
tend to be more sensitive to changes in interest rates.

	Credit Risk: The Fund could lose money if the issuer
or guarantor of a fixed income security, or the counterparty
to a derivative contract, is unable
or unwilling to meet its financial obligations.

	Market Risk: The value of securities owned by the
Fund may go up or down, sometimes rapidly or unpredictably.
Securities may decline in value due to factors affecting
securities markets generally or particular industries.

	Issuer Risk: The value of a security may decline
for a number of reasons which directly relate to the issuer,
such as management performance, financial leverage and reduced
demand for the issuer's goods or services.

	Liquidity Risk: Liquidity risk exists when particular
investments are difficult to purchase or sell. The Fund's
investments in illiquid securities may reduce the returns of
the Fund because it may be unable to sell illiquid securities
at an advantageous time or price.

	Derivatives Risk: When the Fund invests in a
derivative instrument, it could lose more than the principal
amount invested. Derivatives are subject to a number of risks,
such as liquidity, interest rate, market, credit and management
risk. They also involve the risk of improper valuation. Changes
in the value of a derivative may not correlate perfectly with
the underlying asset, rate or index.

	Leveraging Risk: The Fund may engage in transactions
that give rise to a form of leverage. Leverage may cause the
Fund to sell holdings when it may not be advantageous to
do so. Leverage, including borrowing, may cause the Fund
to be more volatile than if the Fund had not been leveraged.

	Management Risk: There is no guarantee that the
investment techniques and risk analyses applied by
PIMCO will produce the desired results.

	California State Specific Risk: To the extent
that the Fund concentrates its investments in California
municipal bonds, it may be affected significantly by economic,
regulatory or political developments affecting the ability of
California issuers to pay interest or repay principal.
Provisions of the California Constitution and State
statutes limit the taxing and spending authority of
California governmental agencies. While California's
economy is broad, it may be sensitive to economic
problems affecting those industries concentrated in California.

	New York State Specific Risk: To the extent that the
Fund concentrates its investments in New York municipal bonds,
it may be affected significantly by economic, regulatory or
political developments affecting the ability of New York
issuers to pay interest or repay principal. Certain issuers
of New York municipal bonds have experienced serious financial
difficulties in the past. The financial health of New York
City affects that of the State, and when New York City
experiences financial difficulty it may have an adverse
affect on New York municipal bonds held by the Fund. The
growth rate of New York has at times been somewhat slower
than the nation overall.


How has the Fund performed?

The bar chart and table below provide some indication of
the risks of investing in the Fund by showing changes in
its performance from year to year and by showing how the
Fund's average annual returns compare with the returns of
a broad-based securities market index and an index of similar
funds. The bar chart and table show performance of the Fund's
Institutional Class shares net of fees. Past performance is
no guarantee of future results.


Calendar Year Total Returns

1998	1999
6.07%	-3.72%

During the period shown in the bar chart, the highest
quarterly return was 3.33% (3rd Quarter 1998) and the
lowest quarterly return was -2.36% (2nd Quarter 1999).
As of June 30, 2000, the Fund's year-to-date return
was 4.15%.


Average Annual Total Returns for the periods
ended June 30, 2000
					Since
				1 year	Inception3
Municipal Bond Fund,
	Institutional Class	1.91%	2.50%
Lehman General Municipal
	Bond Index1		3.25%	3.49%
Lipper General Municipal
	Fund Avg.2		3.60%	1.76%

1 The Lehman General Municipal Bond Index is an
unmanaged index of municipal bonds with an average
duration of 7.5 years as of 6/30/00. It is not
possible to invest directly in the index.
2 The Lipper General Municipal Debt Fund Average
is a total return performance average of Funds
tracked by Lipper Analytical Services, Inc. that
invest at least 65% of their assets in municipal
debt issues in the top four credit ratings. It does
not take into account sales charges.
3 The Fund began operations on 12/31/97.


What are the Fund's Fees and Expenses?

These tables describe the fees and expenses you may
pay if you buy and hold Institutional Class shares
of the Fund:

Shareholder Fees
(fees paid directly from your investment)	None
Annual Fund Operating Expenses
(expenses that are deducted from Fund assets, shown
as a percentage of average daily net assets)
Advisory Fee					0.25%
Distribution (12b-1) and/or Service Fees	None
Other Expenses1					0.25%
Total Annual Operating Expenses			0.50%

1 Other Expenses reflect a 0.25% Administrative Fee paid
by the class.
Example: The Example is intended to help you
compare the cost of investing in the Fund with the
costs of investing in other mutual funds. The Example
assumes that you invest $10,000 in the Fund for the time
periods indicated, and then redeem all your shares at the
end of those periods. The Example also assumes a 5% return
each year, the reinvestment of all dividends and distributions,
and that the Fund's operating expenses remain the same.
Although your actual costs may be higher or lower, the
Example shows what your costs would be based on these
assumptions.
			1 year	3 years	5 years	10 years
Municipal Bond Fund,
Institutional Class	$51	$160	$280	$628


Who is the Fund's Investment Adviser?

Pacific Investment Management Company LLC ('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 $199 billion in
assets under management as of June 30, 2000. 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. PIMCO
is located at 840 Newport Center Drive, Newport Beach,
CA 92660.

The Fund's portfolio is managed by Mark McCray.
Mr. McCray is a Senior Vice President of PIMCO. He joined
PIMCO as a Portfolio Manager  in 2000. Prior to that, he was
a bond trader from 1992-1999 at Goldman Sachs & Co. where he
was appointed Vice President in 1996 and named co-head of
municipal bond trading in 1997 with responsibility for the
firm's proprietary account and supervised municipal bond
traders. He has managed the Municipal Bond Fund since
April 2000.


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 at the
address shown below, and wiring funds. Wiring instructions
can be obtained by calling us at 1-800-927-4648.

	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 (Redeem) Fund Shares?

You may sell (redeem) all or part of your Fund shares
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. A shareholder may elect to have
distributions paid in cash by calling 1-800-927-4648.

Dividends paid to shareholders of the Fund and
derived from Municipal Bond interest are expected
to be designated by the Fund as 'exempt-interest
dividends' and shareholders may generally exclude
such dividends from gross income for federal income
tax purposes. The federal tax exemption for 'exempt-
interest dividends' from Municipal Bonds does not
necessarily result in the exemption of such dividends
from state and local taxes. The interest on 'private
activity' bonds is a tax-preference item for purposes
of the federal alternative minimum tax. As a result,
for shareholders that are subject to the alternative
minimum tax, income derived from 'private activity'
bonds will not be exempt from federal income tax.

Dividends derived from taxable interest or capital gains
will be subject to federal income tax. 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:

	The ability to exchange shares of the Fund for
the same class of shares of any other PIMCO Fund.

	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
PIMCO's Institutional Web site at www.pimco.com.
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 Real Return
Bond Fund
Institutional Class Shares

August 17, 2000

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, visiting our Web
site at www.pimco.com,or by contacting your financial
intermediary.


What is the Fund's Investment Objective?

The Fund seeks maximum real return, consistent with
preservation of real capital and prudent investment
management.


What is the Fund's principal investment strategy?

The Fund seeks its investment objective by investing
under normal circumstances at least 65% of its assets
in inflation-indexed bonds of varying maturities issued
by the U.S. and non-U.S. governments, their agencies or
instrumentalities, and corporations. Inflation-indexed
bonds are fixed income securities that are structured
to provide protection against inflation. The value of
the bond's principal or the interest income paid on the
bond is adjusted to track changes in an official inflation
measure. The U.S. Treasury uses the Consumer Price Index
for Urban Consumers as the inflation measure. Inflation-indexed
bonds issued by a foreign government are generally adjusted
to reflect a comparable inflation index, calculated by
that government. 'Real return'equals total return
less the estimated cost of inflation, which is
typically measured by the change in an official
inflation measure.Duration is a measure of the
expected life of a fixed income security that is
used to determine the sensitivity of the security's price
to changes in interest rates. Because of the unique features
of inflation-indexed bonds, PIMCO uses a modified form of
duration for the Fund ('real duration') which measures price
changes as a result of changes in 'real' interest rates.
A 'real' interest rate is the market interest rate minus
expected inflation. There is no limit on the real duration
of the Fund, but it is expected that the average real
duration of the Fund will normally vary approximately
within the range of the average real duration of all
inflation-indexed bonds issued by the U.S. Treasury in the
aggregate, which as of June 30, 2000 was 8.92 years.
For point of reference, it is expected that the average
portfolio duration (as opposed to real duration) of
the Fund will generally vary within a one- to five-year
time frame, although this range is subject to change.

The Fund invests primarily in investment grade securities,
but may invest up to 10% of its assets in high yield securities
('junk bonds') rated B or higher by Moody's or S&P, or, if
unrated, determined by PIMCO to be of comparable quality.

The Fund also 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. The Fund will normally
hedge at least 75% of its exposure to foreign currency
to reduce the risk of loss due to fluctuations in
currency exchange rates. The Fund is non-diversified,
which means that it may concentrate its assets in a
smaller number of issuers than a diversified Fund.

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.
The Fund typically uses derivatives as a substitute for
taking a position in the underlying asset and/or as part
of a strategy designed to reduce exposure to other risks,
such as interest rate or currency risk. The Fund may
lend its portfolio securities to brokers, dealers and other
financial institutions to earn income. The Fund may seek to
obtain market exposure to the securities in which it
primarily invests by entering into a series of purchase
and sale contracts or by using other investment techniques
(such as buybacks or dollar rolls).

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 at 1-800-927-4648.


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:

	Interest Rate Risk: As interest rates rise,
the value of fixed income securities in the Fund's portfolio
is likely to decrease. Securities with longer durations tend
to be more sensitive to changes in interest rates.

	Credit Risk: The Fund could lose money if the issuer
or guarantor of a fixed income security, or the counterparty
to a derivative contract, is unable or unwilling to meet its
financial obligations.

	Market Risk: The value of securities owned by the
Fund may go up or down, sometimes rapidly or unpredictably.
Securities may decline in value due to factors affecting
securities markets generally or particular industries.

	Issuer Risk: The value of a security may decline for
a number of reasons which directly relate to the issuer, such
as management performance, financial leverage and reduced
demand for the issuer's goods or services.

	Derivatives Risk: When the Fund invests in a
derivative instrument, it could lose more than the
principal amount invested. Derivatives are subject to a
number of risks, such as liquidity, interest rate, market,
credit and management risk. They also involve the risk
of improper valuation. Changes in the value of a derivative
may not correlate perfectly with the underlying asset, rate
or index.

	Liquidity Risk: Liquidity risk exists when
particular investments are difficult to purchase or
sell. The Fund's investments in illiquid securities
may reduce the returns of the Fund because it may be
unable to sell the illiquid securities at an advantageous
time or price.

	Issuer Non-Diversification Risk: Focusing
investments in a small number of issuers, industries or
foreign currencies increases risk. Because the Fund is
non-diversified, it may be more susceptible to risks
associated with a single economic, political or regulatory
occurrence than a more diversified portfolio might be.

	Foreign Investment Risk: When the Fund invests in
foreign securities, it may experience more rapid and
extreme changes in value than if it invested exclusively
in U.S. securities. The securities markets of many foreign
countries are relatively small. Reporting, accounting
and auditing standards of foreign countries differ from
U.S. standards. Also, nationalization, expropriation or
confiscatory taxation, currency blockage, political changes
or diplomatic developments could adversely affect the Fund's
investments in a foreign country.

	Currency Risk: When the Fund invests in securities
denominated in foreign currencies, it is subject to the risk
that those currencies will decline in value relative to the
U.S. Dollar, or, in the case of hedging positions, that
the U.S. Dollar will decline in value relative to the
currency being hedged. Currency rates in foreign countries
may fluctuate significantly over short periods of time for
reasons such as changes in interest rates, government
intervention or political developments. As a result, the
Fund's investments in foreign currency-denominated securities
may reduce the returns of the Fund.

	Leveraging Risk: The Fund may engage in transactions
that give rise to a form of leverage. Leverage may cause the
Fund to sell holdings when it may not be advantageous to do
so. Leverage, including borrowing, may cause the Fund to
be more volatile than if the Fund had not been leveraged.

	Management Risk: There is no guarantee that the
investment techniques and risk analyses applied by PIMCO
will produce the desired results.


How has the Fund performed?

The bar chart and table below provide some indication of the
risks of investing in the Fund by showing changes in its
performance from year to year and by showing how the Fund's
average annual returns compare with the returns of a broad-based
securities market index and an index of similar funds. The
bar chart and table show performance of the Fund's
Institutional Class shares net of fees. Past performance
is no guarantee of future results.

Calendar Year Total Returns

1998	1999
5.21%	5.72%

During the period shown in the bar chart, the highest quarterly
return was 3.19% (3rd Quarter 1998) and the lowest quarterly
return was -0.05% (4th Quarter 1998). As of June 30, 2000,
the Fund's year-to-date return was 6.85%.

Average Annual Total Returns for the periods ended
June 30, 2000
					Since
				1 year	Inception3
Real Return Bond Fund,
	Institutional Class	8.46%	6.43%
Lehman Brothers Inflation
	Linked Treasury Index1	7.33%	4.53%
Lipper Short U.S.
	Government Fund Avg.2	4.49%	4.74%

1 The Lehman Brothers Inflation Linked Treasury Index is
an unmanaged index consisting of the U.S. Treasury Inflation
Protected Securities market with an average duration of 3.17
years as of 6/30/00. It is not possible to invest directly
in the index.
2 The Lipper Short U.S. Government Fund Average is a total
return performance average of Funds tracked by Lipper
Analytical Services, Inc. that invest at least 65% of their
assets in securities issued or guaranteed by the U.S.
government, its agencies, or its instrumentalities, with
dollar-weighted average maturities of less than three years.
It does not take into account sales charges.
3 The Fund began operations on 1/29/97. Index comparisons
began on 1/31/97.


What are the Fund's Fees and Expenses?

These tables describe the fees and expenses you may pay
if you buy and hold Institutional Class shares of the Fund:
Shareholder Fees
(fees paid directly from your investment)	None
Annual Fund Operating Expenses
(expenses that are deducted from Fund assets, shown as a
percentage of average daily net assets)
Advisory Fee					0.25%
Distribution (12b-1) and/or Service Fees	None
Other Expenses1					0.28%
Total Annual Operating Expenses			0.53%

1 Other Expenses reflect an Administrative Fee of 0.25%
and interest expense of 0.03% paid during the most recent
fiscal year. Total Annual Operating Expenses excluding
interest expense is 0.50%. Interest expense is generally
incurred as a result of investment management activities.
Example: The Example is intended to help you compare the
cost of investing in the Fund with the costs of investing
in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then
redeem all your shares at the end of those periods. The
Example also assumes a 5% return each year, the reinvestment
of all dividends and distributions, and that the Fund's
operating expenses remain the same. Although your actual
costs may be higher or lower, the Example shows what your
costs would be based on these assumptions.

			1 year	3 years	5 years	10 years
Real Return Bond Fund,
Institutional Class	$54	$170	$296	$665


Who is the Fund's Investment Adviser?

Pacific Investment Management Company  LLC ("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 $199 billion in
assets under management as of June 30, 2000. 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. PIMCO
is located at 840 Newport Center Drive, Newport Beach,
CA 92660.

The Fund's portfolio is managed by John Brynjolfsson.
Mr. Brynjolfsson is an Executive Vice President of PIMCO.
He joined PIMCO as a Portfolio Manager in 1989, and has
managed fixed income accounts for various institutional
clients and funds since that time from 1992-1998. He has
managed the Real Return Bond Fund since its inception in
January 1997.


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 at the
address shown below, and wiring funds. Wiring instructions
can be obtained by calling us at 1-800-927-4648.

	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 (Redeem) Fund Shares?

You may sell (redeem) all or part of your Fund shares 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.
A shareholder may elect to have distributions paid in cash by
calling 1-800-927-4648. 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.

Investors should carefully consider the possible tax
consequences from investing in the Fund. Periodic adjustments
for inflation to the principal value of inflation-indexed bonds
held by the Fund may give rise to original issue discount,
which would be included in the Fund's gross income. Accordingly,
the Fund may be required to make annual distributions to
shareholders in excess of the cash received by the Fund.
Also, if the principal value of an inflation-indexed bond
is adjusted downward, amounts previously distributed in the
taxable year may be characterized in some circumstances as
a return of capital.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:

	The ability to exchange shares of the Fund for the
same class of shares of any other PIMCO Fund.

	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
PIMCO's Institutional Website at www.pimco.com.
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 StocksPLUS Fund
Institutional Class Shares

August 17, 2000

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,
visiting our Web site at www.pimco.com, or by contacting
your financial intermediary.


What is the Fund's Investment Objective?

The Fund seeks total return which exceeds that of the
S&P 500.


What is the Fund's principal investment strategy?

The Fund seeks to exceed the total return of the S&P 500
by investing under normal circumstances substantially all
of its assets in S&P 500 derivatives, backed by a portfolio
of fixed income instruments. The Fund may invest in common
stocks, options, futures, options on futures and swaps. The
Fund 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 value of S&P 500 derivatives closely
track changes in the value of the index. However, S&P 500
derivatives may be purchased with a fraction of the assets
that would be needed to purchase the equity securities
directly, so that the remainder of the assets may be
invested in fixed income instruments. PIMCO actively
manages the fixed income assets held by the Fund with a
view toward enhancing the Fund's total return, subject to
an overall portfolio duration which is normally not expected
to exceed one year. Duration is a measure of the expected
life of a fixed income security that is used to determine
the sensitivity of the security's price to changes in
interest rates.

The S&P 500 is composed of 500 selected common stocks
that represent approximately two-thirds of the total market
value of all U.S. common stocks. The Fund is neither
sponsored by nor affiliated with S&P. The Fund seeks to
remain invested in S&P 500 derivatives or S&P 500 stocks
even when the S&P 500 is declining.

Though the Fund does not normally invest directly in S&P
500 securities, when S&P 500 derivatives appear to be
overvalued relative to the S&P 500, the Fund may invest
all of its assets in a 'basket' of S&P 500 stocks. Individual
stocks are selected based on an analysis of the historical
correlation between the return of every S&P 500 stock and
the return on the S&P 500 itself. PIMCO may employ fundamental
analysis of factors such as earnings and earnings growth,
price to earnings ratio, dividend growth, and cash flows
to choose among stocks that satisfy the correlation tests.
Stocks chosen for the Fund are not limited to those with
any particular weighting in the S&P 500. The Fund also
may invest in exchange-traded funds based on the S&P
500, such as Standard & Poor's Depository Receipts.

Assets not invested in equity securities or derivatives
may be invested in fixed
income instruments. The Fund may invest up to 10% of
its assets in high yield securities ('junk bonds') rated
B or higher by Moody's or S&P, or, if unrated, determined
by PIMCO 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. The Fund will
normally hedge at least 75% of its exposure to foreign
currency to reduce the risk of loss due to fluctuations
in currency exchange rates. In addition, the Fund may lend
its portfolio securities to brokers, dealers and other
financial institutions to earn income.

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 at 1-800-927-4648.


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 securities owned by
the Fund may go up or down, sometimes rapidly or
unpredictably. Securities may decline in value due to
factors affecting securities markets generally or
particular industries. Equity securities generally have
greater price volatility than fixed income securities.
Under certain conditions, generally in a market where the
value of both S&P 500 derivatives and fixed income securities
are declining, the Fund may experience greater losses than
would be the case if it invested directly in a portfolio of
S&P 500 stocks.

	Issuer Risk: The value of a security may decline for
a number of reasons which directly relate to the issuer, such
as management performance, financial leverage and reduced
demand for the issuer's goods or services.

	Derivatives Risk: When the Fund invests in a
derivative instrument, it could lose more than the principal
amount invested. Derivatives are subject to a number of risks,
such as liquidity, interest rate, market, credit and management
risk. They also involve the risk of improper valuation.
Changes in the value of a derivative may not correlate
perfectly with the underlying asset, rate or index.

	Credit Risk: The Fund could lose money if the issuer
orguarantor of a fixed income security, or the counterparty to
a derivative contract, is unable or unwilling to meet its
financial obligations.

	Interest Rate Risk: As interest rates rise, the
value of fixed income securities in the Fund's portfolio
is likely to decrease. Securities with longer durations
tend to be more sensitive to changes in interest rates.

	Liquidity Risk: Liquidity risk exists when
particular investments are difficult to purchase or
sell. The Fund's investments in illiquid securities may
reduce the returns of the Fund because it may be unable
to sell the illiquid securities at an advantageous time
or price.

	Foreign Investment Risk: When the Fund invests
in foreignsecurities, it may experience more rapid and
extreme changes in value than if it invested exclusively
in U.S. securities. The securities markets of many foreign
countries are relatively small. Reporting, accounting and
auditing standards of foreign countries differ from U.S.
standards. Also, nationalization, expropriation or
confiscatory taxation, currency blockage, political
changes or diplomatic developments could adversely affect
the Fund's investments in a foreign country.

	Currency Risk: When the Fund invests in securities
denominated in foreign currencies, it is subject to the risk
that those currencies will decline in value relative to the
U.S. Dollar, or, in the case of hedging positions, that the
U.S. Dollar will decline in value relative to the currency
being hedged. Currency rates in foreign countries may
fluctuate significantly over short periods of time for
reasons such as changes in interest rates, government
intervention or political developments. As a result, the
Fund's investments in foreign currency-denominated securities
may reduce the returns of the Fund.

	Mortgage Risk: Rising interest rates tend to extend
the duration of mortgage-related securities, making them
more sensitive to changes in interest rates. When interest
rates decline, borrowers may pay off their mortgages sooner
than expected. This can reduce the returns of a Fund because
the Fund will have to reinvest that money at the lower
prevailing interest rates.

	Leveraging Risk: The Fund may engage in transactions
that give rise to a form of leverage. Leverage may cause
the Fund to sell holdings when it may not be advantageous
to do so. Leverage, including borrowing, may cause the Fund
to be more volatile than if the Fund had not been leveraged.

	Management Risk: There is no guarantee that the
investment techniques and risk analyses applied by PIMCO
will produce the desired results.


How has the Fund performed?

The bar chart and table below provide some indication of the
risks of investing in the Fund by showing changes in its
performance from year to year and by showing how the Fund's
average annual returns compare with the returns of a
broad-based securities market index and an index of similar
funds. The bar chart and table show performance of the Fund's
Institutional Class shares net of fees. Past performance is
no guarantee of future results.

Calendar Year Total Returns

1994	1995   1996   1997   1998   1999
2.92%	40.52% 23.07% 32.85% 28.33% 20.13%

During the period shown in the bar chart, the highest
quarterly return was 21.45% (4th Quarter 1998) and
the lowest quarterly return was -9.77% (3rd Quarter 1998).
As of June 30, 2000, the end of the most recent calendar
quarter, the Fund's year-to-date return was -0.64%.
Average Annual Total Returns
for the periods ended June 30, 2000
						Since
				1 year	5 years	Inception3
StocksPLUS Fund,
	Institutional Class	6.95%	23.67%	21.26%
S&P 500 Index1			7.25%	23.80%	20.60%
Lipper Large Cap Core
	Fund Avg.2		11.37%	21.79%	18.51%

1 The Standard & Poor's 500 Composite Stock Price Index is
an unmanaged index of common stocks. It is not possible to
invest directly in the index.
2 The Lipper Large Cap Core Fund Average is a total return
performance average of Funds tracked by Lipper Analytical
Services, Inc. that invest at least 75% of their equity
ssets in companies with market capitalizations (on a three
year weighted basis) of greater than 300% of the dollar weighted
median market capitalization of the S&P 400 Mid-Cap Index.
It does not take into account sales charges.
3 The Fund began operations on 5/13/93. Index comparisons
began on 4/30/93.


What are the Fund's Fees and Expenses?

These tables describe the fees and expenses you may pay if
you buy and hold Institutional Class shares of the Fund:
Shareholder Fees
(fees paid directly from your investment)	None
Annual Fund Operating Expenses
(expenses that are deducted from Fund assets, shown as a
percentage of average daily net assets)
Advisory Fee					0.40%
Distribution (12b-1) and/or Service Fees	None
Other Expenses1					0.25%
Total Annual Operating Expenses			0.65%

1 Other Expenses reflect a 0.25% Administrative Fee paid
by the class.
Example: The Example is intended to help you compare
the cost of investing in the Fund with the costs of
investing in other mutual funds. The Example assumes
that you invest $10,000 in the Fund for the time periods
indicated, and then redeem all your shares at the end of
those periods. The Example also assumes a 5% return each year,
the reinvestment of all dividends and distributions, and
that the Fund's operating expenses remain the same. Although
your actual costs may be higher or lower, the Example shows
what your costs would be based on these assumptions.

			1 year	3 years	5 years	10 years
StocksPLUS Fund,
  Institutional Class	$66	$208	$362	$810


Who is the Fund's Investment Adviser?

Pacific Investment Management Company LLC ('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 $199 billion in
assets under management as of June 30, 2000. 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. PIMCO is located at
840 Newport Center Drive, Newport Beach, CA 92660.

The Fund's portfolio is managed by a team led by William H.
Gross. Mr. Gross is a Managing Director, Chief Investment
Officer and a founding partner of PIMCO and he has managed
fixed income accounts for various institutional clients and
funds for over 25 years. He has led the team managing the
StocksPLUS Fund since January, 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:

	Opening an account by completing and signing a Client
Registration Application, mailing it to us at the address
shown below, and wiring funds. Wiring instructions can be
obtained by calling us at 1-800-927-4648.

	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 (Redeem) Fund Shares?

You may sell (redeem) all or part of your Fund shares 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 quarterly 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. A shareholder may elect to have
distributions paid in cash by calling 1-800-927-4648.
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:

	The ability to exchange shares of the Fund for
the same class of shares of any other PIMCO Fund.

	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 PIMCO's Institutional Website at www.pimco.com.
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 Strategic Balanced Fund
Institutional Class Shares

August 17, 2000

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,
visiting our Web site at www.pimco.com, or by contacting
your financial intermediary.


What is the Fund's Investment Objective?

The Fund seeks maximum total return, consistent with
preservation of capital and prudent investment management.


What is the Fund's principal investment strategy?

The Fund seeks to achieve its investment objective by
normally investing in a combination of fixed income
securities and equity securities or derivatives on
equity securities. The percentage of the Fund's assets
invested in equities and equity derivatives or in fixed
income securities will be determined based on methodology,
developed by PIMCO, that forecasts stages in the business
cycle and considers the risk and reward potential of equity
and fixed income securities within specific phases of the
business cycle. The Fund's equity exposure will vary between
45% and 75% of assets, and its fixed income exposure will
range from a minimum of 25% to a maximum of 55%.

The Fund's equity exposure normally consists of S&P 500
derivatives, backed by a portfolio of short-term fixed
income instruments. PIMCO 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 value
of S&P 500 derivatives closely track changes in the value
of the index. However, S&P 500 derivatives may be purchased
with a fraction of the assets that would be needed to purchase
the equity securities directly, so that the remainder of the
assets may be invested in fixed income instruments. PIMCO
will actively manage the fixed income assets serving as
cover for derivatives, as well as any other fixed income
assets held by the Fund, with a view toward enhancing the
Fund's total return investment performance. Though the Fund
does not normally invest directly in S&P 500 securities, when
S&P 500 derivatives appear to be overvalued relative to the S&P
500, the Fund may invest the equity portion of its assets in a
'basket' of S&P 500 stocks.

The Fund's fixed income exposure will normally consist of a
diversified portfolio of fixed income instruments of varying
maturities. The securities may be of any maturity. The average
portfolio duration of the fixed income portion of the Fund's
assets will normally vary within a three- to six-year time frame.
Duration is a measure of the expected life of a fixed income
security that is used to determine the sensitivity of the
security's price to changes in interest rates.

The fixed income instruments in which the Fund invests are
primarily investment grade, but the Fund may invest up to
10% of its assets in high yield securities ('junk bonds')
rated B or higher by Moody's or S&P, or, if unrated, determined
by PIMCO 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. The Fund will
normally hedge at least 75% of its exposure to foreign
currency to reduce the risk of loss due to fluctuations
in currency exchange rates.

The Fund may invest all of its assets in derivative
instruments, such as options, futures contracts or
swap agreements. The Fund typically uses derivatives
as a substitute for taking a position in the
underlying asset and/or as part of a strategy
designed to reduce exposure to other risks,
such as interest rate or currency risk. The Fund
may lend its portfolio securities to brokers,
dealers and other financial institutions to earn
income. The Fund may seek to obtain market exposure
to the securities in which it primarily invests
by entering into a series of purchase and sale
contracts or by using other investment techniques
(such as buybacks or dollar rolls). The 'total return'
sought by the Fund consists of income earned on the Fund's
investments, plus capital appreciation, if any, which
generally arises from decreases in interest rates or
improving credit fundamentals for a particular sector
or security.

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 at 1-800-927-4648.


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 securities owned by
the Fund may go up or down, sometimes rapidly or
unpredictably. Securities may decline in value due to
factors affecting securities markets generally or
particular industries. Equity securities generally
have greater price volatility than fixed income securities.

	Issuer Risk: The value of a security may decline
for a number of reasons which directly relate to the
issuer, such as management performance, financial
leverage and reduced demand for the issuer's goods
or services.

	Interest Rate Risk: As interest rates rise, the
value of fixed income securities in the Fund's portfolio
is likely to decrease. Securities with longer durations
tend to be more sensitive to changes in interest rates.

	Credit Risk: The Fund could lose money if the issuer
or guarantor of a fixed income security, or the counterparty
to a derivative contract, is unable or unwilling to meet its
financial obligations.

	Derivatives Risk: When the Fund invests in a
derivative instrument, it could lose more than the
principal amount invested. Derivatives are subject to
a number of risks, such as liquidity, interest rate,
market, credit and management risk. They also involve
the risk of improper valuation. Changes in the value
of a derivative may not correlate perfectly with the
underlying asset, rate or index.

	Liquidity Risk: Liquidity risk exists when
particular investments are difficult to purchase or
sell. The Fund's investments in illiquid securities
may reduce the returns of the Fund because it may be
unable to sell the illiquid securities at an
advantageous time or price.

	Foreign Investment Risk: When the Fund invests
in foreign securities, it may experience more rapid and
extreme changes in value than if it invested exclusively
in U.S. securities. The securities markets of many foreign
countries are relatively small. Reporting, accounting and
auditing standards of foreign countries differ from U.S.
standards. Also, nationalization, expropriation or
confiscatory taxation, currency blockage, political
changes or diplomatic developments could adversely affect
the Fund's investments in a foreign country.

	Currency Risk: When the Fund invests in securities
denominated in foreign currencies, it is subject to the
risk that those currencies will decline in value relative
to the U.S. Dollar, or, in the case of hedging positions,
that the U.S. Dollar will decline in value relative to the
currency being hedged. Currency rates in foreign countries
may fluctuate significantly over short periods of time for
reasons such as changes in interest rates, government
intervention or political developments. As a result, the
Fund's investments in foreign currency-denominated
securities may reduce the returns of the Fund.

	Mortgage Risk: Rising interest rates tend to
extend the duration of mortgage-related securities,
making them more sensitive to changes in interest
rates. When interest rates decline, borrowers may pay
off their mortgages sooner than expected. This can reduce
the returns of a Fund because the Fund will have to reinvest
that money at the lower prevailing interest rates.

	Leveraging Risk: The Fund may engage in transactions
that give rise to a form of leverage. Leverage may cause the
Fund to sell holdings when it may not be advantageous to do
so. Leverage, including borrowing, may cause the Fund to
be more volatile than if the Fund had not been leveraged.

	Management Risk: There is no guarantee that the
investment techniques and risk analyses applied by PIMCO
will produce the desired results.


How has the Fund performed?

The bar chart and table below provide some indication
of the risks of investing in the Fund by showing changes
in its performance from year to year and by showing how
the Fund's average annual returns compare with the returns
of a broad-based securities market index and an index of
similar funds. The bar chart and table show performance
of the Fund's Institutional Class shares net of fees.
Past performance is no guarantee of future results.

Calendar Year Total Returns

1997   1998   1999
24.17% 19.66% 11.56%

During the period shown in the bar chart, the highest
quarterly return was 12.23% (2nd Quarter 1997) and the
lowest quarterly return was -4.60% (3rd Quarter 1998).
As of June 30, 2000, the end of the most recent calendar
quarter, the Fund's year-to-date return was -0.49%.
Average Annual Total Returns for the periods ended
June 30, 2000
					Since
				1 year	Inception4
Strategic Balanced Fund,
	Institutional Class	4.19%	16.16%
S&P 500 Index1			7.25%	23.26%
S&P 500 and Lehman Aggregate
	Bond Index Blend2	6.43%	16.67%
Lipper Balanced Fund Avg3	4.43%	12.80%

1 The Standard & Poor's 500 Composite Stock Price Index
is an unmanaged index of common stocks. It is not
possible to invest directly in the index.
2 This index used for the Fund is a static self-blended
index consisting 60% of the S&P 500 Composite Stock Price
Index and 40% of the Lehman Brothers Aggregate Bond Index.
The Fund believes this self- blended index reflects the Fund's
investment strategy more accurately than the S&P 500 Index.
It is not possible to invest directly in the index.
3 The Lipper Balanced Fund Average is a total return
performance average of Funds tracked by Lipper Analytical
Services, Inc., whose primary objective is to conserve
principal by maintaining at all times a balanced portfolio
of both stocks and bonds. It does not take into account
sales charges.
4 The Fund began operations on 6/28/96. Index comparisons
began on 6/30/96.


What are the Fund's Fees and Expenses?

These tables describe the fees and expenses you may pay
if you buy and hold Institutional Class shares of the Fund:
Shareholder Fees
(fees paid directly from your investment)	None
Annual Fund Operating Expenses
(expenses that are deducted from Fund assets, shown as a
percentage of average daily net assets)
Advisory Fee					0.40%
Distribution (12b-1) and/or Service Fees	None
Other Expenses1					0.25%
Total Annual Operating Expenses			0.65%

1 Other Expenses reflect a 0.25% Administrative Fee paid
by the class.
Example: The Example is intended to help you compare the
cost of investing in the Fund with the costs of investing
in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then
redeem all your shares at the end of those periods. The
Example also assumes a 5% return each year, the reinvestment
of all dividends and distributions, and that the Fund's
operating expenses remain the same. Although your actual
costs may be higher or lower, the Example shows what your
costs would be based on these assumptions.
			1 year	3 years	5 years	10 years
Strategic Balanced Fund,
  Institutional Class	$66	$208	$362	$810


Who is the Fund's Investment Adviser?

Pacific Investment Management Company LLC ("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 $199 billion in
assets under management as of June 30, 2000. 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.
PIMCO is located at 840 Newport Center Drive, Newport
Beach, CA 92660.

The Fund's portfolio is managed by a team led by
William H. Gross. Mr. Gross is a Managing Director,
Chief Investment Officer and a founding partner of PIMCO
and he has managed fixed income accounts for various
institutional clients and funds for over 25 years. He
has led the team managing the Strategic Balanced
Fund since January 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:

	Opening an account by completing and signing a
Client Registration Application, mailing it to us at
the address shown below, and wiring funds. Wiring
instructions can be obtained by calling us at
1-800-927-4648.

	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 (Redeem) Fund Shares?

You may sell (redeem) all or part of your Fund shares 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 quarterly 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. A shareholder may elect to have
distributions paid in cash by calling 1-800-927-4648.
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:

	The ability to exchange shares of the Fund for
the same class of shares of any other PIMCO Fund.

	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 PIMCO's Institutional Website at www.pimco.com.
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
Administrative Class Shares

August 17, 2000

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, visiting our
Website at www.pimco.com, or by contacting your
financial intermediary.


What is the Fund's Investment Objective?

The Fund seeks maximum total return, consistent with
preservation of capital and prudent investment management.


What is the Fund's principal investment strategy?

The Fund seeks to achieve its investment objective by
investing under normal circumstances at least 65% of its
assets in a diversified portfolio of fixed income instruments
of varying maturities. The average portfolio duration of this
Fund normally varies within a three- to six-year time frame
based on PIMCO's forecast for interest rates. Duration is a
measure of the expected life of a fixed income security that
is used to determine the sensitivity of the security's price
to changes in interest rates.

The Fund invests primarily in investment grade debt securities,
but may invest up to 10% of its assets in high yield
securities ("junk bonds") rated B or higher by Moody's or S&P,
or, if unrated, determined by PIMCO 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.
The Fund will normally hedge at least 75% of its exposure
to foreign currency to reduce the risk of loss due to
fluctuations in currency exchange rates.

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.
The Fund typically uses derivatives as a substitute for
taking a position in the underlying asset and/or as part
of a strategy designed to reduce exposure to other risks,
such as interest rate or currency risk. The Fund may lend
its portfolio securities to brokers, dealers and other
financial institutions to earn income. The Fund may seek
to obtain market exposure to the securities in which it
primarily invests by entering into a series of purchase
and sale contracts or by using other investment techniques
(such as buybacks or dollar rolls). The "total return"
sought by the Fund consists of income earned on the Fund's
investments, plus capital appreciation, if any, which
generally arises from decreases in interest rates or
improving credit fundamentals for a particular sector
or security.

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 at 1-800-927-4648.


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:

	Interest Rate Risk: As interest rates rise,
the value of fixed income securities in the Fund's portfolio
is likely to decrease. Securities with longer durations tend
to be more sensitive to changes in interest rates.

	Credit Risk: The Fund could lose money if the issuer or
guarantor of a fixed income security, or the counterparty to
a derivative contract, is unable or unwilling to meet its
financial obligations.

	Market Risk: The value of securities owned by the
Fund may go up or down, sometimes rapidly or unpredictably.
Securities may decline in value due to factors affecting
securities markets generally or particular industries.

	Issuer Risk: The value of a security may decline
for a number of reasons which directly relate to the issuer,
such as management performance, financial leverage and
reduced demand for the issuer's goods or services.

	Derivatives Risk: When the Fund invests in a
derivative instrument, it could lose more than the
principal amount invested. Derivatives are subject
to a number of risks, such as liquidity, interest rate,
market, credit and management risk. They also involve
the risk of improper valuation. Changes in the value of
a derivative may not correlate perfectly with the underlying
asset, rate or index.

	Liquidity Risk: Liquidity risk exists when particular
investments are difficult to purchase or sell. The Fund's
investments in illiquid securities may reduce the returns of
the Fund because it may be unable to sell the illiquid
securities at an advantageous time or price.

	Mortgage Risk: Rising interest rates tend to
extend the duration of mortgage-related securities,
making them more sensitive to changes in interest rates.
When interest rates decline, borrowers may pay off their
mortgages sooner than expected. This can reduce the returns
of a Fund because the Fund will have to reinvest that money
at the lower prevailing interest rates.

	Foreign Investment Risk: When the Fund invests in
foreign securities, it may experience more rapid and extreme
changes in value than if it invested exclusively in U.S.
securities. The securities markets of many foreign countries
are relatively small. Reporting, accounting and auditing
standards of foreign countries differ from U.S. standards.
Also, nationalization, expropriation or confiscatory
taxation, currency blockage, political changes or diplomatic
developments could adversely affect the Fund's investments
in a foreign country.

	Currency Risk: When the Fund invests in securities
denominated in foreign currencies, it is subject to the
risk that those currencies will decline in value relative
to the U.S. Dollar, or, in the case of hedging positions,
that the U.S. Dollar will decline in value relative to the
currency being hedged. Currency rates in foreign countries
may fluctuate significantly over short periods of time for
reasons such as changes in interest rates, government
intervention or political developments. As a result, the
Fund's investments in foreign currency-denominated
securities may reduce the returns of the Fund.

	Leveraging Risk: The Fund may engage in transactions
that give rise to a form of leverage. Leverage may cause the
Fund to sell holdings when it may not be advantageous to do
so. Leverage, including borrowing, may cause the Fund to
be more volatile than if the Fund had not been leveraged.

	Management Risk: There is no guarantee that the
investment techniques and risk analyses applied by PIMCO
will produce the desired results.


How has the Fund performed?

The bar chart and table below provide some indication of
the risks of investing in the Fund by showing changes in
its performance from year to year and by showing how the
 Fund's average annual returns compare with the returns
of a broad-based securities market index and an index
of similar funds. The bar chart and table show
performance of the Fund's Administrative Class
shares net of fees. For periods prior to the inception
date of the Administrative Class (9/8/94), performance
information is based on the performance of the Fund's
Institutional Class shares. The prior Institutional
Class performance has been adjusted to reflect the
actual 12b-1/service fees and other expenses paid by
Administrative Class shares. Past performance is no
guarantee of future results.

Calendar Year Total Returns

1990  1991   1992  1993   1994   1995   1996  1997  1998  1999
7.77% 19.29% 9.49% 12.27% -3.81% 19.38% 4.53% 9.89% 9.50% -0.53%

During the period shown in the bar chart, the highest
quarterly return was 6.50% (3rd Quarter 1991) and
the lowest quarterly return was -2.74% (1st Quarter
1994). As of June 30, 2000, the Fund's year-to-date
return was 3.94%.

Average Annual Total Returns for the periods ended
June 30, 2000
				1 year	5 years	10 years
Total Return Fund,
	Administrative Class	4.72%	7.11%	8.76%
Lehman Brothers
	Aggregate Bond Index1	4.56%	6.25%	7.82%
Lipper Intermediate Investment
	Grade Debt Fund Avg.2	3.42%	5.35%	7.27%

1 The Lehman Brothers Aggregate Bond Index is an unmanaged
index of investment grade, U.S. dollar-denominated fixed
income securities of domestic issuers having a maturity
greater than one year. It is not possible to invest directly
in the index.
2 The Lipper Intermediate Investment Grade Debt Fund
Average is a total return performance average of Funds
tracked by Lipper Analytical Services, Inc. that invest
at least 65% of their assets in investment-grade debt
issues (rated in the top four grades) with dollar-weighted
average maturities of five to ten years. It does not take
into account sales charges.


What are the Fund's Fees and Expenses?

These tables describe the fees and expenses you may
pay if you buy and hold Administrative Class shares
of the Fund:
Shareholder Fees
(fees paid directly from your investment)	None
Annual Fund Operating Expenses
(expenses that are deducted from Fund assets, shown as
a percentage of average daily net assets)
Advisory Fee					0.25%
Distribution (12b-1) and/or Service Fees	0.25%
Other Expenses1					0.29%
Total Annual Operating Expenses			0.79%

1 Other Expenses reflect an Administrative Fee of 0.18%
and interest expense of 0.11% paid during the most recent
fiscal year. Total Annual Operating Expenses excluding
interest expense is 0.68%. Interest expense is generally
incurred as a result of investment management activities.
Example: The Example is intended to help you compare
the cost of investing in the Fund with the costs of
investing in other mutual funds. The Example assumes
that you invest $10,000 in the Fund for the time periods
indicated, and then redeem all your shares at the end of
those periods. The Example also assumes a 5% return each
year, the reinvestment of all dividends and distributions,
and that the Fund's operating expenses remain the same.
Although your actual costs may be higher or lower, the
Example shows what your costs would be based on these
assumptions.
			1 year	3 years	5 years	10 years
Total Return Fund,
Administrative Class	$81	$252	$439	$978


Who is the Fund's Investment Adviser?

Pacific Investment Management Company LLC ("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 $199
billion in assets under management as of June 30, 2000.
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. PIMCO is
located at 840 Newport Center Drive, Newport Beach, CA 92660.

The Fund's portfolio is managed by William H. Gross.
A Fixed Income Portfolio Manager, Mr. Gross is a Managing
Director, Chief Investment Officer and a founding partner
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. 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 at the
address shown below, and wiring funds. Wiring instructions
can be obtained by calling us at 1-800-927-4648.

	Exchanging Administrative 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 (Redeem) Fund Shares?

You may sell (redeem) all or part of your Fund shares 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. A shareholder may elect to have
distributions paid in cash by calling 1-800-927-4648.
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:

	The ability to exchange shares of the Fund for the
same class of shares of any other PIMCO Fund.

	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
PIMCO's Institutional Website at www.pimco.com.
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

August 17, 2000

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, visiting our
Web site at www.pimco.com, or by contacting your
financial intermediary.


What is the Fund's Investment Objective?

The Fund seeks maximum total return, consistent with
preservation of capital and prudent investment management.


What is the Fund's principal investment strategy?

The Fund seeks to achieve its investment objective by
investing under normal circumstances at least 65% of
its assets in a diversified portfolio of fixed income
instruments of varying maturities. The average portfolio
duration of this Fund normally varies within a three- to
six-year time frame based on PIMCO's forecast for interest
rates. Duration is a measure of the expected life of a
fixed income security that is used to determine the
sensitivity of the security's price to changes in interest
rates.

The Fund invests primarily in investment grade debt
securities, but may invest up to 10% of its assets
in high yield securities ("junk bonds") rated B or
higher by Moody's or S&P, or, if unrated, determined
by PIMCO 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.
The Fund will normally hedge at least 75% of its exposure
to foreign currency to reduce the risk of loss due to
fluctuations in currency exchange rates.

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. The Fund typically uses derivatives as
a substitute for taking a position in the underlying
asset and/or as part of a strategy designed to reduce
exposure to other risks, such as interest rate or
currency risk. The Fund may lend its portfolio securities
to brokers, dealers and other financial institutions to
earn income. The Fund may seek to obtain market exposure
to the securities in which it primarily invests by entering
into a series of purchase and sale contracts or by using
other investment techniques (such as buybacks or dollar rolls).
The "total return" sought by the Fund consists of income
earned on the Fund's investments, plus capital appreciation,
if any, which generally arises from decreases in
interest rates orimproving credit fundamentals for
a articular sector or security.

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 at
1-800-927-4648.


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:

	Interest Rate Risk: As interest rates rise, the
value of fixed income securities in the Fund's portfolio
is likely to decrease. Securities with longer durations
tend to be more sensitive to changes in interest rates.

	Credit Risk: The Fund could lose money if the
issuer or guarantor of a fixed income security, or the
counterparty to a derivative contract, is unable
or unwilling to meet its financial obligations.

	Market Risk: The value of securities owned by the
Fund may go up or down, sometimes rapidly or unpredictably.
Securities may decline in value due to factors affecting
securities markets generally or particular industries.

	Issuer Risk: The value of a security may decline
for a number of reasons which directly relate to the issuer,
such as management performance, financial leverage and
reduced demand for the issuer's goods or services.

	Derivatives Risk: When the Fund invests in a
derivative instrument, it could lose more than the
principal amount invested. Derivatives are subject
to a number of risks, such as liquidity, interest rate,
market, credit and management risk. They also involve
the risk of improper valuation. Changes in the value of
a derivative may not correlate perfectly with the
underlying asset, rate or index.

	Liquidity Risk: Liquidity risk exists when
particular investments are difficult to purchase or
sell. The Fund's investments in illiquid securities
may reduce the returns of the Fund because it may
be unable to sell the illiquid securities at an
advantageous time or price.

	Mortgage Risk: Rising interest rates tend to
extend the duration of mortgage-related securities,
making them more sensitive to changes in interest
rates. When interest rates decline, borrowers may pay
off their mortgages sooner than expected. This can
reduce the returns of a Fund because the Fund will
have to reinvest that money at the lower prevailing
interest rates.

	Foreign Investment Risk: When the Fund invests
in foreign securities, it may experience more rapid and
extreme changes in value than if it invested exclusively
in U.S. securities. The securities markets of many foreign
countries are relatively small. Reporting, accounting and
auditing standards of foreign countries differ from U.S.
standards. Also, nationalization, expropriation or
confiscatory taxation, currency blockage, political
changes or diplomatic developments could adversely
affect the Fund's investments in a foreign country.

	Currency Risk: When the Fund invests in securities
denominated in foreign currencies, it is subject to the
risk that those currencies will decline in value relative
to the U.S. Dollar, or, in the case of hedging positions,
that the U.S. Dollar will decline in value relative to the
currency being hedged. Currency rates in foreign countries
may fluctuate significantly over short periods of time for
reasons such as changes in interest rates, government
intervention or political developments. As a result, the
Fund's investments in foreign currency-denominated
securities may reduce the returns of the Fund.

	Leveraging Risk: The Fund may engage in transactions
that give rise to a form of leverage. Leverage may cause the
Fund to sell holdings when it may not be advantageous to do
so. Leverage, including borrowing, may cause the Fund to
be more volatile than if the Fund had not been leveraged.

	Management Risk: There is no guarantee that the
investment techniques and risk analyses applied by PIMCO
will produce the desired results.


How has the Fund performed?

The bar chart and table below provide some indication of
the risks of investing in the Fund by showing changes in
its performance from year to year and by showing how the
Fund's average annual returns compare with the returns of
a broad-based securities market index and an index of
similar funds. The bar chart and table show performance
of the Fund's Institutional Class shares net of fees.
Past performance is no guarantee of future results.

Calendar Year Total Returns

1990  1991   1992  1993	  1994v  1995   1996  1997   1998  1999
8.05% 19.55% 9.73% 12.51% -3.58% 19.77% 4.69% 10.16% 9.76% -0.28%

During the period shown in the bar chart, the highest
quarterly return was 6.66% (3rd Quarter 1991) and
the lowest quarterly return was -2.69% (1st Quarter
1994). As of June 30, 2000, the Fund's year-to-date
return was 4.07%.

Average Annual Total Returns for the periods ended
June 30, 2000
				1 year	5 years	10 years
Total Return Fund,
	Institutional Class	4.98%	7.36%	9.02%
Lehman Brothers
	Aggregate Bond Index1	4.56%	6.25%	7.82%
Lipper Intermediate Investment
	Grade Debt Fund Avg.2	3.42%	5.35%	7.27%

1 The Lehman Brothers Aggregate Bond Index is an
unmanaged index of investment grade, U.S. dollar-
denominated fixed income securities of domestic
issuers having a maturity greater than one year.
It is not possible to invest directly in the index.
2 The Lipper Intermediate Investment Grade Debt Fund
Average is a total return performance average of Funds
tracked by Lipper Analytical Services, Inc. that
invest at least 65% of their assets in investment-
grade debt issues (rated in the top four grades)
with dollar-weighted average maturities of five to
ten years. It does not take into account sales charges.


What are the Fund's Fees and Expenses?

These tables describe the fees and expenses you may
pay if you buy and hold Institutional Class shares
of the Fund:
Shareholder Fees
(fees paid directly from your investment)	None
Annual Fund Operating Expenses
(expenses that are deducted from Fund assets, shown
as a percentage of average daily net assets)
Advisory Fee					0.25%
Distribution (12b-1) and/or Service Fees	None
Other Expenses1					0.29%
Total Annual Operating Expenses			0.54%

1 Other Expenses reflect an Administrative Fee of 0.18%
and interest expense of 0.11% paid during the most recent
fiscal year. Total Annual Operating Expenses excluding
interest expense is 0.43%. Interest expense is generally
incurred as a result of investment management activities.
Example: The Example is intended to help you compare the
cost of investing in the Fund with the costs of investing
in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and
then redeem all your shares at the end of those periods.
The Example also assumes a 5% return each year, the
reinvestment of all dividends and distributions, and
that the Fund's operating expenses remain the same.
Although your actual costs may be higher or lower,
the Example shows what your costs would be based on
these assumptions.
			1 year	3 years	5 years	10 years
Total Return Fund,
  Institutional Class	$55	$173	$302	$677


Who is the Fund's Investment Adviser?

Pacific Investment Management Company LLC ('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 $199
billion in assets under management as of June 30, 2000.
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.
PIMCO is located at 840 Newport Center Drive, Newport Beach,
CA 92660.

The Fund's portfolio is managed by William H. Gross. A Fixed
Income Portfolio Manager, Mr. Gross is a Managing Director,
Chief Investment Officer and a founding partner 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 at the
address shown below, and wiring funds. Wiring instructions
can be obtained by calling us at 1-800-927-4648.

	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 (Redeem) Fund Shares?

You may sell (redeem) all or part of your Fund shares 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.
A shareholder may elect to have distributions paid in cash by
calling 1-800-927-4648. 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:

	The ability to exchange shares of the Fund for the
same class of shares of any other PIMCO Fund.

	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 PIMCO's Institutional Web site at www.pimco.com.
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



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