<PAGE>
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14 OF THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. )
Filed by the Registrant [_]
Filed by a Party other than the Registrant [X]
Check the appropriate box:
[_] Preliminary Proxy Statement [_] CONFIDENTIAL, FOR USE OF THE
[_] Definitive Proxy Statement COMMISSION ONLY (AS PERMITTED BY
[X] Definitive Additional Materials RULE 14a-8(e)(2))
[_] Soliciting Material Pursuant to
Rule 14a-11(c) or Rule 14a-12
PIMCO Advisors Funds
------------------------------------------------------------------------
(Name of Registrant as Specified In Its Charter)
PIMCO Advisors L.P.
------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[X] No fee required
[_] Fee computed on table below per Exchange Act Rules 14a-6(i)(l) and 0-11.
(1) Title of each class of securities to which transaction applies:
- --------------------------------------------------------------------------------
(2) Aggregate number of securities to which transaction applies:
- --------------------------------------------------------------------------------
(3) Per unit price or other underlying value of transaction computed pursuant to
Exchange Act Rule 0-11 (Set forth the amount on which the filing fee is
calculated and state how it was determined):
- --------------------------------------------------------------------------------
(4) Proposed maximum aggregate value of transaction:
- --------------------------------------------------------------------------------
(5) Total fee paid:
- --------------------------------------------------------------------------------
[_] Fee paid previously with preliminary materials.
- --------------------------------------------------------------------------------
[_] Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number,
or the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
- --------------------------------------------------------------------------------
(2) Form, Schedule or Registration Statement No.:
- --------------------------------------------------------------------------------
(3) Filing Party:
- --------------------------------------------------------------------------------
(4) Date Filed:
- --------------------------------------------------------------------------------
<PAGE>
[LOGO OF PIMCO APPEARS HERE]
PIMCO ADVISORS L.P.
800 NEWPORT CENTER DRIVE
NEWPORT BEACH, CALIFORNIA 92660
November 4, 1996
Dear PIMCO Advisors Funds Shareholder:
We are proposing to consolidate the PIMCO Advisors Funds (your fund family)
with the institutional PIMCO Funds family, both of which are managed by the
PIMCO Advisors affiliated investment firms. The resulting fund complex, to be
known as the "PIMCO Funds," will offer both individual and institutional share
classes and provide you with a number of benefits, including an immediate
reduction in Fund operating expenses.
WHAT THE CONSOLIDATION CHANGES
As part of this overall restructuring, we are proposing the merger of the
PIMCO Advisors Value Fund into the PIMCO Funds' NFJ Diversified Low P/E Fund
(which will be renamed the "Value Fund" after the restructuring), and the
merger of the PIMCO Advisors Discovery Fund into the PIMCO Funds' Cadence Mid
Cap Growth Fund.
Each share of your Fund would be exchanged at net asset value and on a tax-
free basis for shares of the fund that is its merger partner. Each merger
would allow you to pursue a similar investment objective with the same
portfolio manager, in a larger fund with a longer track record and lower
operating expenses.
We expect the proposed restructuring and the merger of your Fund will offer
you the following advantages:
. Lower operating expenses. The PIMCO Funds feature a "unified fee"
structure that will set fixed advisory and administration fees for the
Value and Discovery Funds post-merger in place of the current fluctuating
expense ratios--at an initial combined rate lower than the current and
historical expense ratios of these Funds.
. More assets in your Fund. Your new Fund will have more assets under
management. In general, more assets can mean more opportunities to
control risk through greater portfolio diversification. A larger fund can
also realize transaction cost savings and other efficiencies when buying
and selling securities.
. A larger fund family. You will be part of a fund family which will have
approximately $24 billion in assets (based on current values). This
increase in size should provide all of the Funds with more visibility and
presence in the marketplace with the potential to attract new assets.
. More Funds to select. We will be able to offer eight additional Funds--
resulting in a broader choice of investments for shareholders seeking to
make free exchanges between Funds or to diversify further a portfolio.
Like the PIMCO Advisors Funds you now own, the eight additional Funds are
managed by our well known, respected institutional asset management
firms.
. Strong performance histories. While past performance is no guarantee of
future results, the PIMCO Funds which will now be available to you
generally have strong performance histories.
. Simplified PIMCO Funds structure. Having multiple fund complexes with the
PIMCO name may have caused confusion for some of our shareholders,
especially when they were trying to track their Fund's performance in
newspaper listings. This restructuring offers a simpler, more efficient
way to identify your PIMCO Funds.
<PAGE>
WHAT STAYS THE SAME
While this restructuring will bring about a number of changes, the
fundamental characteristics of your Fund will stay the same.
. Your Fund's management remains the same. Following the restructuring, you
will have the same institutional investment firm managing your Fund.
. Continued access to specialized, institutional expertise. Each Fund you
already own, and the new ones we are adding to the Fund family, will
continue to offer access to PIMCO Advisors' institutional investment
management firms--each of which specializes in a specific investment
discipline or style.
. Firm commitment to shareholders. PIMCO Advisors and its affiliates remain
committed to shareholders in terms of Fund performance, communications
and service.
The table attached as Exhibit A to this letter summarizes the transaction
for your Fund.
YOUR VOTE IS IMPORTANT
After reviewing the proposed consolidations, your Board of Trustees
unanimously agreed that they are in the best interests of Fund shareholders
and voted to approve the transactions, all as more fully described in the
accompanying Prospectus/Proxy Statement. Now it is your turn to review the
proposal for your Fund and vote. For more information about the issues
requiring your vote, please refer to the accompanying Prospectus/Proxy
Statement.
A special meeting of the shareholders of PIMCO Advisors Funds will be held
at 11:00 a.m. Eastern time on December 20, 1996 to vote on the specific issues
of each proposed merger. The meeting will be held at our offices at 2187
Atlantic Street in Stamford, Connecticut. If you are not able to attend the
meeting, then please use the enclosed proxy and envelope to cast your vote so
that you will be represented.
Thank you in advance for your participation in this important event.
Sincerely,
/s/ William D. Cvengros
William D. Cvengros,
Chief Executive Officer
P.S. No matter how many shares you own, your timely vote is important. Please
make the effort to complete, sign, date and mail the enclosed proxy promptly,
in order to avoid the expense of additional mailings or having our proxy
solicitor, Shareholder Communications Corporation, telephone you.
<PAGE>
EXHIBIT A
<TABLE>
<CAPTION>
PRIOR TO CONSOLIDATION FUND TO BE MERGED INTO
---------------------- ----------------------
<S> <C> <C>
VALUE FUND
Name PIMCO Advisors Value Fund PIMCO NFJ Diversified Low
P/E Fund (To be renamed
PIMCO Value Fund after
consolidation)
Objective Long-term growth of capital Long-term growth of capital
and current income and income
Primary Portfolio Common stocks of companies Common stocks of companies
with below average P/E with below average P/E
ratios and/or higher ratios relative to their
dividend yields relative to industry groups
their industry groups
Manager NFJ Investment Group NFJ Investment Group
Assets $60 million as of 9/30/96 $120 million as of 9/30/96
Inception Date 06/27/95 12/30/91
Morningstar Risk- Too new to be rated **** Among 1,708 equity
Adjusted Rating as of funds
9/30/96*
- ----------------------------------------------------------------------------------
DISCOVERY FUND
Name PIMCO Advisors Discovery PIMCO Cadence Mid Cap Growth
Fund Fund (to be renamed PIMCO
Mid Cap Growth Fund after
consolidation)
Objective Capital appreciation Growth of capital
Primary Portfolio Common stocks of small Common stocks of companies
companies with equity with market capitalizations
capitalizations of $500 in excess of $500 million
million to $1 billion which that have improving
exhibit favorable growth fundamentals and whose
characteristics and stock is reasonably valued
reasonable valuations by the market
Manager Cadence Capital Management Cadence Capital Management
Assets $68 million as of 9/30/96 $300 million as of 9/30/96
Inception Date 06/27/95 08/26/91
Morningstar Risk- Too new to be rated **** Among 1,018 equity
Adjusted Rating as of funds
9/30/96*
</TABLE>
- --------
* Morningstar ratings reflect historical risk-adjusted performance and are
subject to monthly changes. Therefore, past ratings are not a guarantee of
future results. Overall rating is a weighted average of a fund's 3-, 5- and
10-year ratings (when applicable) as of September 30, 1996. During those
periods there were, respectively, 1,708, 1,018 and 557 equity funds rated.
The ratings are calculated from a fund's average annual total return with
appropriate sales charge adjustment and a risk factor that reflects fund
performance relative to three month Treasury bill returns. The Mid Cap
Growth Fund's 3- and 5-year ratings as of 9/30/96 were both 4-stars. The
NFJ Diversified Low P/E Fund's 4-star rating is based on its 3-year record.
Four and five star ratings are limited to approximately the top one-third
of the funds in an investment category.
<PAGE>
[LOGO OF PIMCO APPEARS HERE]
PIMCO ADVISORS L.P
800 NEWPORT CENTER DRIVE
NEWPORT BEACH, CALIFORNIA 92660
November 4, 1996
Dear PIMCO Advisors Funds Shareholder:
We are proposing to consolidate the PIMCO Advisors Funds (your fund family)
with the institutional PIMCO Funds family, both of which are managed by PIMCO
Advisors' affiliated investment firms. The resulting fund complex, to be known
as the "PIMCO Funds," will offer both individual and institutional share
classes and provide you with a number of benefits, including an immediate
reduction in Fund operating expenses.*
WHAT THE CONSOLIDATION CHANGES
As part of this overall restructuring, we are proposing the merger of your
PIMCO Advisors Fund into an existing institutional fixed income fund of the
PIMCO Funds family. Each share of your Fund would be exchanged at net asset
value and on a tax-free basis for shares of the fund that is its merger
partner. Shareholders will need to evaluate this proposal in terms of their
individual Fund(s). In general, each merger is offering our bond Fund
shareholders the opportunity to pursue a similar investment objective** in a
larger fund, with a longer track record, and lower operating expenses.
We expect the proposed restructuring will offer you the following
advantages:
. Lower operating expenses.* The PIMCO Funds have a unified fee structure
that sets fixed advisory and administration fees in place of the current
fluctuating expense ratios--at an initial combined rate lower than the
current and historical expense ratios for your Fund.
. More assets in your Fund. Your new Fund will have more assets under
management. In general, more assets can mean more opportunities to
control risk through greater portfolio diversification. A larger fund can
also realize transaction cost savings and efficiencies when buying and
selling securities.
. A larger fund family. You will be part of a fund family which will have
approximately $24 billion in assets (based upon current values). This
increase in size should provide all of the Funds with more visibility and
presence in the marketplace, with the potential to attract new assets.
. More Funds to select. We will be able to offer eight additional Funds--
resulting in a broader choice of investments for shareholders seeking to
make free exchanges between funds or to diversify further a portfolio.
Three of these new Funds will be managed by Pacific Investment Management
Company, "one of the country's most respected managers of fixed income
portfolios." (Kiplinger's Personal Finance 7/95)
. Strong performance histories. While past performance is no guarantee of
future results, the PIMCO Funds which will now be available to you have
strong performance histories.
- --------
* The merger of the PIMCO Advisors Money Market Fund involves a change of
investment advisor and a different fee situation (see "Money Market Fund--
Special Considerations" in the attached table).
** U.S. Government Fund shareholders should note that their Fund's intended
merger partner, the Total Return Fund, does not invest exclusively in U.S.
Government securities.
<PAGE>
. Simplified PIMCO Funds structure. Having multiple fund complexes with the
PIMCO name may have caused confusion for some of our shareholders,
especially when they were trying to track their Fund's performance in
newspaper listings. This restructuring offers a simpler, more efficient
way to identify your PIMCO Funds.
WHAT STAYS THE SAME
While this restructuring will bring about a number of changes, the
fundamental characteristics of your Fund will stay the same.
. Fund management. Following the restructuring, each of the Funds covered
by the enclosed Prospectus/Proxy Statement will have Pacific Investment
Management Company acting as investment advisor (this represents a change
for the Money Market Fund only).
. Continued access to specialized, institutional expertise. Each Fund you
already own, and the new ones we are adding to the Fund family, will
continue to offer access to PIMCO Advisors' institutional investment
management firms which include, in addition to Pacific Investment
Management Company, five equity managers--each of which specializes in a
specific investment discipline or style.
. Firm commitment to shareholders. PIMCO Advisors and its affiliates remain
committed to shareholders in terms of Fund performance, communications
and service.
The table attached as Exhibit A to this letter summarizes the transaction
for your bond Fund and special considerations with respect to the Money Market
Fund.
YOUR VOTE IS IMPORTANT
After reviewing these proposed consolidations, your Board of Trustees
unanimously agreed that they are in the best interests of Fund shareholders
and voted to approve the transactions, all as more fully described in the
accompanying Prospectus/Proxy Statement. Now it is your turn to review the
proposal for your Fund and vote. For more information about the issues
requiring your vote, please refer to the accompanying Prospectus/Proxy
Statement.
A special meeting of the shareholders of PIMCO Advisors Funds will be held
at 11:00 a.m. Eastern time on December 20, 1996 to vote on the specific issues
of the consolidation. The meeting will be held at our offices at 2187 Atlantic
Street in Stamford, Connecticut. If you are not able to attend the meeting,
then please use the enclosed proxy and envelope to cast your vote so that you
will be represented.
No matter how many shares you own, your timely vote is important. Please
make the effort to complete, sign, date and mail the enclosed proxy promptly,
in order to avoid the expense of additional mailings.
Thank you in advance for your participation in this important event.
Sincerely,
/s/ William D. Cvengros
William D. Cvengros,
Chief Executive Officer
<PAGE>
EXHIBIT A
<TABLE>
<CAPTION>
PRIOR TO CONSOLIDATION FUND TO BE MERGED INTO
---------------------- ----------------------
<S> <C> <C>
HIGH INCOME FUND
Name PIMCO Advisors High Income PIMCO High Yield Fund
Fund
Objective Maximum total return, Same
consistent with
preservation of capital
Primary Portfolio Higher yielding fixed income Same
securities (duration 2-6
years)
Manager Pacific Investment Same
Management Company (manager
since 11/94)
Assets $250 million as of 9/30/96 $950 million as of 9/30/96
Inception Date 02/24/84 12/16/92
Morningstar Risk- ** among 186 fixed income **** among 948 fixed income
Adjusted Rating as funds funds
of 9/30/96*
- -------------------------------------------------------------------------------
TOTAL RETURN INCOME
FUND
Name PIMCO Advisors Total Return PIMCO Total Return Fund
Income Fund
Objective Maximum total return, Same
consistent with
preservation of capital
Primary Portfolio Investment grade fixed- Same
income securities (duration
3-6 years)
Manager Pacific Investment Same
Management Company
Assets $220 million as of 9/30/96 $11.4 billion as of 9/30/96
Inception Date 12/22/94 5/11/87
Morningstar Risk- Too new to be rated ***** among 500 fixed income
adjusted Rating as funds
of 9/30/96*
- -------------------------------------------------------------------------------
U.S. GOVERNMENT
FUND
Name PIMCO Advisors U.S. PIMCO Total Return Fund
Government Fund
Objective Maximum total return, Same
consistent with
preservation of capital
Primary Portfolio U.S. Government securities Investment grade fixed-
(duration 3-6 years) income securities (duration
3-6 years)
Manager Pacific Investment Same
Management Company (manager
since 11/94)
Assets $260 million as of 9/30/96 $11.4 billion as of 9/30/96
Inception Date 09/16/85 05/11/87
Morningstar Risk- ** among 186 fixed income ***** among 500 fixed income
adjusted Rating as funds funds
of 9/30/96*
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRIOR TO CONSOLIDATION FUND TO BE MERGED INTO
---------------------- ----------------------
<S> <C> <C>
SHORT-INTERMEDIATE
FUND
Name PIMCO Advisors Short- PIMCO Low Duration Fund
Intermediate Fund
Objective Current income consistent Maximum total return,
with relatively low consistent with
volatility of principal preservation of capital
Primary Portfolio Short- to intermediate-term Same
investment grade fixed
income securities (duration
1-3 years)
Manager Pacific Investment Same
Management Company (manager
since 11/94)
Assets $120 million as of 9/30/96 $2.8 billion as of 9/30/96
Inception Date 08/16/91 05/11/87
Morningstar Risk- *** among 500 fixed income ***** among 500 fixed income
adjusted Rating as funds funds
of 9/30/96*
- -------------------------------------------------------------------------------
</TABLE>
MONEY MARKET FUND--SPECIAL CONSIDERATIONS
Your PIMCO Advisors Money Market Fund (an unrated Fund) will merge into the
PIMCO Funds' Money Market Fund. As a result, the advisor for your Money Market
Fund, currently Columbus Circle Investors, will become Pacific Investment
Management Company. After the consolidation, the aggregate operating expenses
to be borne by investors will be lower than the currently approved contractual
rate for your Money Market Fund, but higher than the current operating
expenses for your Fund, which have been lowered by the current advisor's
voluntary fee waiver. Please note, money market funds strive to maintain a
$1.00 per share net asset value. However, these funds are neither insured nor
guaranteed by the U.S. Government, and there can be no assurance that a fund's
$1.00 per share net asset value will remain stable.
- --------
* Morningstar ratings reflect historical risk-adjusted performance and are
subject to monthly changes. Therefore, past ratings are not a guarantee of
future results. Overall rating is a weighted average of a fund's 3-, 5- and
10-year ratings (when applicable) as of September 30, 1996. During these
periods, there were, respectively, 948, 500 and 186 fixed income funds
rated. The ratings are calculated from a fund's average annual total return
with appropriate sales charge adjustment and a risk factor that reflects
fund performance relative to three month Treasury bill returns. The Total
Return, Short-Intermediate and Low Duration Funds' 3- and 5-year ratings as
of 9/30/96 were 4- and 5-stars, 4- and 3-stars, and 5- and 5-stars,
respectively. The U.S. Government and High Income Funds' 3-, 5- and 10-year
ratings were 2-, 1- and 2-stars, and 2-, 3- and 2-stars, respectively. The
High Yield Fund's 4-star rating is based on its 3-year record. Four and
five star ratings are limited to approximately the top one-third of the
funds in an investment category and 35% earn 3 stars, and one-third of the
funds receive 2 or 1 stars.
<PAGE>
[LOGO OF PIMCO APPEARS HERE]
PIMCO ADVISORS L.P.
800 NEWPORT CENTER DRIVE
NEWPORT BEACH, CALIFORNIA 92660
November 4, 1996
Dear PIMCO Advisors Funds Shareholder:
We are proposing to consolidate the PIMCO Advisors Funds (your fund family)
with the existing institutional PIMCO Funds family. If approved, this
consolidation would provide you with a number of advantages, including a
larger fund family.
WHAT THE CONSOLIDATION CHANGES
Currently, there are two PIMCO fund families: PIMCO Advisors Funds (your
fund family) and the institutional PIMCO Funds family, both of which are
managed by PIMCO Advisors affiliated investment firms. The Fund complex
resulting from the consolidation, to be known as the "PIMCO Funds," will offer
both retail and institutional share classes and provide our current PIMCO
Advisors Funds shareholders with several important benefits.
. A larger fund family. You will be part of a fund family which will have
approximately $24 billion in assets (based on current values). This increase
in size should provide the Funds with more visibility and presence in the
marketplace with the potential to attract new assets, allowing for the
possibility for greater portfolio diversification and lower portfolio
transaction costs.
. More Funds to select. We will be able to offer eight additional Funds--
resulting in a broader choice of investments for shareholders looking to
make free exchanges between funds or to diversify further a portfolio. Like
the PIMCO Advisors Funds you now own, the eight additional Funds are managed
by our well known, respected institutional asset management firms.
. Strong performance histories. While past performance is no guarantee of
future results, the PIMCO Funds which will now be available to you have
strong performance histories.
. Fixed fees. Once the restructuring takes place, you will participate in the
PIMCO Funds' "unified fee" structure that sets fixed advisory and
administration fees in place of the current fluctuating expense ratios. The
restructuring also involves changes in total Fund expense ratios (increases
in some cases and decreases in others), all as more fully described in the
proxy statement. In each case, during the term of the relevant contracts,
the unified fee allows shareholders to know up front how much their Fund
will be paying, and it protects against rising expenses.
. Simplified PIMCO Funds structure. Having multiple fund complexes with the
PIMCO name may have caused confusion for some of our shareholders,
especially when they were trying to track their Fund's performance in
newspaper listings. This restructuring offers a simpler, more efficient way
to identify your PIMCO Funds.
<PAGE>
WHAT STAYS THE SAME
While this restructuring will bring about a lot of changes, the fundamental
characteristics of your Fund will stay the same.
. Your Fund's management and investment objective remains the same. Following
the restructuring, your Fund will have the same quality institutional
investment team and the same investment objective.
. Continued access to specialized, institutional expertise. Each Fund you
already own (except for the Precious Metals Fund), and the new ones we are
adding to the PIMCO Funds family, will continue to offer access to PIMCO
Advisors institutional investment management firms--each of which
specializes in a specific investment discipline or style.
. Firm commitment to shareholders. PIMCO Advisors and its affiliates remain
committed to shareholders, in terms of Fund performance, communications and
service.
YOUR VOTE IS IMPORTANT
After reviewing these proposed transactions, your Board of Trustees
unanimously agreed that they are in the best interests of Fund shareholders
and voted to approve the transactions, all as more fully described in the
accompanying proxy statement. Now it is your turn to review the proposals for
your Fund and vote. You are also being asked to approve new investment
advisory and sub-advisory contracts. For more information about the issues
requiring your vote (including the new investment advisory and sub-advisory
arrangements that vary by Fund), please refer to the accompanying proxy
statement.
A special meeting of the shareholders of PIMCO Advisors Funds will be held
at 11:00 a.m. Eastern time on December 20, 1996 to vote on the specific issues
of this proposed consolidation. The meeting will be held at our offices at
2187 Atlantic Street in Stamford, Connecticut. If you are not able to attend
the meeting, then please use the enclosed proxy and envelope to cast your vote
so that you will be represented.
Thank you in advance for your participation in this important event.
Sincerely,
/s/ William D. Cvengros
William D. Cvengros,
Chief Executive Officer
P.S. No matter how many shares you own, your timely vote is important.
Please make the effort to complete, sign, date and mail the enclosed proxy
promptly in order to avoid the expense of additional mailings or having our
proxy solicitor, Shareholder Communications Corporation, telephone you.
<PAGE>
================================================================================
F u n d N e w s
================================================================================
PIMCO Proposes Consolidation of Fund Families
We're pleased to announce a proposal to consolidate the PIMCO Advisors Funds
with the institutional PIMCO Funds family. If approved by shareholders, all of
the funds will fall under the "PIMCO Funds" banner, and you and your clients
will experience a host of potential benefits.
. Stronger performance histories
To avoid duplication and confusion, several of our Funds will merge into
existing PIMCO institutional Funds. In almost all cases, the Funds' investment
managers will stay the same. By and large, the institutional Funds have strong
track records and longer performance histories.
. Bond Fund expenses reduced
In the future, the total expenses incurred by the retail investors in our
taxable bond Funds will be substantially lower. An increase in expenses for the
Opportunity Fund is proposed.
. Expanded Fund family
We'll offer ten new Funds by adding A, B and C shares to existing PIMCO
institutional Funds.
. Investment clout
The consolidated fund family will be one of the largest fund complexes in the
country. This can mean greater cost efficiencies when buying and selling
portfolio securities.
Status Quo
Of course, some things are too good to tinker with. That's why these important
elements will remain the same:
. Institutional Fund managers
Our Funds will continue to have the same investment firms managing their assets,
except that the Money Market Fund will be managed by Pacific Investment
Management Company.
. Flexible pricing
We'll continue to offer A, B and C shares.
. Sales support
The expert sales support you've come to expect will remain the same, including
your internal and external wholesaler.
Consolidation Timing
In November, your clients will receive proxy statements and ballots. Please urge
your clients to cast their votes as soon as possible, to avoid the cost of
follow-up mailings. If the consolidation is approved, it's anticipated that the
changes would occur by the end of January.
PIMCO Advisors Funds which will merge into existing PIMCO institutional funds
<TABLE>
<CAPTION>
Current PIMCO Current PIMCO Fund Name Fund Objective/ Morningstar Rating
Advisors Fund Institutional Fund After Merger Primary Portfolio of Surviving Fund/1/
<S> <C> <C> <C> <C>
PIMCO Advisors PIMCO NFJ Diversified PIMCO Value Fund Long-term growth of capital and ****
Value Fund Low/PE Fund income through investment in common
stocks with below average P/Es.
PIMCO Advisors PIMCO Cadence PIMCO Mid-Cap Growth of capital through investment ****
Discovery Fund Mid-Cap Growth Fund Growth Fund in mid-cap stocks which the manager
feels are reasonably priced.
PIMCO Advisors PIMCO High PIMCO High Total return through investment in ****
High Income Fund Yield Fund Yield Fund higher yielding bonds (2-6 year
duration).
PIMCO Advisors Total PIMCO Total PIMCO Total Total return through investment in *****
Return Income Fund and Return Fund Return Fund intermediate-term investment grade
U.S. Government Fund bonds (3-6 year duration).
PIMCO Advisors Short- PIMCO Low PIMCO Low Total return through investment in *****
Intermediate Fund Duration Fund Duration Fund shorter-term investment grade bonds
(1-3 year duration).
</TABLE>
- --------------------------------------------------------------------------------
Additional PIMCO Funds which will be available to your clients after the
consolidation
<TABLE>
<CAPTION>
PIMCO Fund Name PIMCO Institutional Manager Objective/Primary Portfolio
<S> <C> <C>
Equity Income Fund/2/ NFJ Investment Group Current income and long-term growth through investment
in stocks with below average PEs and/or stocks that
offer above average dividend yields. ****
Stocks Plus Fund Pacific Investment Management Total return exceeding the S&P 500 through investment in
S&P 500 stock index derivatives backed by a portfolio of
short-term fixed income securities./3/ *****
Capital Appreciation Fund Cadence Capital Management Growth of capital through investment common stocks
which have improving fundamentals and are reasonably
priced. ****
Small-Cap Value Fund NFJ Investment Group Long-term growth of capital and income through investment
in stocks with below average PEs with market caps under $1
billion.
Emerging Markets Fund Blairlogie Capital Management Long-term growth of capital through investment in stocks
of companies in emerging market countries.
International Developed Blairlogie Capital Management Long-term growth of capital through investment in stocks
Fund of companies in developed international countries.
Balanced Fund NFJ Investment Group/ Cadence Capital Total return through investment in common stocks, fixed
Management/ Pacific Investment Management income securities and money market instruments. ****
Long-Term U.S. Pacific Investment Management Total return through investment in long-term U.S.
Government Fund government bonds (duration 8 or more years).
Foreign Bond Fund Pacific Investment Management Total return through investment in intermediate-term
foreign bonds. *****
Short-Term Fund Pacific Investment Management Maximum current income consistent with preservation of
capital and daily liquidity through investment in money
market securities and short-term bonds. *****
</TABLE>
1.Morningstar ratings as of 9/30/96. 2.The existing PIMCO Advisors Equity Income
Fund, managed by PIMCO Advisors' Columbus Circle Investors, will be renamed the
PIMCO Renaissance Fund. 3.Available to qualified retirement plans (i.e., IRAs,
401(k)s, 403(b)s, SEPs).
The PIMCO Advisors Money Market Fund will merge into the PIMCO Money Market
Fund. Broker/Dealer Use Only
