<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
(x) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from________________ to __________________
Commission File Number 1-09772
PIMCO ADVISORS L.P.
(Exact name of registrant as specified in its charter)
Delaware 06-1349805
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
800 Newport Center Drive
Newport Beach, CA 92660
(Address of principal executive offices)
(Zip Code)
(714) 717-7022
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
----- -----
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 subsequent to the distribution of securities under a plan confirmed by a
court.
Yes No
----- -----
As of March 31, 1997, 13,588,764 publicly traded Class A units of
limited partner interest and 26,532,391 privately-held Class A units of limited
partner interest were issued and outstanding. There were 800,000 units of
general partner interest issued and outstanding at March 31, 1997. In addition,
there were 32,964,759 privately-held Class B units of limited partner interest
issued and outstanding at March 31, 1997.
<PAGE>
PIMCO ADVISORS L.P.
INDEX
<TABLE>
PART I FINANCIAL INFORMATION
<S> <C>
Item 1. Consolidated Financial Statements (Unaudited)
Consolidated Statements of Financial Condition as of
March 31, 1997 and December 31, 1996 3
Consolidated Statements of Operations for the three months
ended March 31, 1997 and 1996 4
Consolidated Statements of Cash Flows for the three months
ended March 31, 1997 and 1996 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 7-9
PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 10
</TABLE>
<PAGE>
PART I: FINANCIAL INFORMATION
Item 1. Financial Statements
PIMCO ADVISORS L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
<TABLE>
<CAPTION>
MARCH 31, 1997 DECEMBER 31, 1996
-------------- -----------------
<S> <C> <C>
ASSETS
- ------
Current assets:
Cash and cash equivalents $ 41,398,241 $ 41,311,545
Fees receivable 61,681,984 66,272,441
Short term investments 12,898,837 11,520,726
Notes receivable 1,591,675 1,569,950
Other assets - current 4,498,859 4,387,208
------------ ------------
Total current assets 122,069,596 125,061,870
Investments in limited partnerships 2,755,021 2,629,864
Fixed assets, net of accumulated depreciation 10,567,058 10,561,346
Intangible assets, net of accumulated
amortization 198,820,404 207,822,687
Other non current assets 15,847,783 12,424,534
------------ ------------
Total assets $350,059,862 $358,500,301
============ ============
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
Current liabilities:
Accounts payable, accrued expenses
and other current liabilities $ 23,615,155 $ 33,813,925
Accrued compensation 36,303,460 26,027,732
------------ ------------
Total current liabilities 59,918,615 59,841,657
Other non current liabilities 3,878,227 2,415,883
------------ ------------
Total liabilities 63,796,842 62,257,540
------------ ------------
Partners' Capital
General Partner (800,000 units
issued and outstanding) 2,870,505 2,986,983
Class A Limited Partners (40,146,155
units issued and outstanding) 199,575,404 205,420,612
Class B Limited Partners (32,964,759
and 32,960,826 units issued and
outstanding) 93,060,948 98,369,570
Unamortized compensation (9,243,837) (10,534,404)
------------ ------------
Total Partners' Capital 286,263,020 296,242,761
------------ ------------
Total liabilities and partners'
capital $350,059,862 $358,500,301
============ ============
</TABLE>
See accompanying notes.
<PAGE>
PIMCO Advisors L.P. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
For the three months ended
-------------------------------
March 31, 1997 March 31, 1996
-------------- --------------
<S> <C> <C>
Revenues:
Investment advisory fees:
Private accounts $ 52,533,387 $ 48,794,710
Proprietary Funds 36,979,530 31,109,699
Distribution and servicing fees 12,823,378 11,015,507
Other 969,995 300,136
------------ ------------
Total revenues 103,306,290 91,220,052
------------ ------------
Expenses:
Compensation and benefits 45,177,704 41,297,732
Amortization of intangibles, Restricted Unit and Option Plans 10,292,850 10,266,615
Commissions 10,247,662 8,874,258
General and administrative 5,490,907 4,691,795
Occupancy and equipment 2,460,475 2,311,971
Other 6,486,947 4,569,672
------------ ------------
Total expenses 80,156,545 72,012,043
------------ ------------
Operating income 23,149,745 19,208,009
Equity in income of limited partnership 29,112 35,350
Other income 563,300 509,056
------------ ------------
Income before taxes 23,742,157 19,752,415
Provision for taxes 553,294 388,971
------------ ------------
Net income $ 23,188,863 $ 19,363,444
============ ============
Net income allocated to:
General Partner $ 259,522 $ 245,035
Class A Limited Partner units 13,023,485 12,288,834
Class B Limited Partner units 9,905,856 6,829,575
------------ ------------
Total $ 23,188,863 $ 19,363,444
============ ============
Net income per unit:
General Partner and Class A Limited Partner unit $ 0.32 $ 0.31
============ ============
Class B Limited Partner unit $ 0.27 $ 0.19
============ ============
Cash distributions paid per unit:
General Partner and Class A Limited Partner unit $ 0.470 $ 0.470
============ ============
Class B Limited Partner unit $ 0.464 $ 0.444
============ ============
</TABLE>
See accompanying notes.
<PAGE>
PIMCO Advisors L.P. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
For the three months ended
------------------------------
March 31, 1997 March 31, 1996
-------------- --------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 23,188,863 $ 19,363,444
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, amortization 10,649,401 9,755,882
Deferred income taxes -
Restricted Unit and Option Plans 1,290,567 1,264,332
Equity in income of limited partnerships (29,112) (35,350)
Unrealized loss on investments 28,000 164,569
Change in operating assets and liabilities:
Fees receivable 4,590,456 386,574
Other assets (4,222,339) (2,163,884)
Accounts payable, accrued expenses and
other current liabilities (10,198,770) 2,662,811
Accrued compensation 10,275,728 10,043,791
Other liabilities 1,462,343 (18,748)
Other 691 (15,932)
------------ ------------
Net cash provided by operating activities 37,035,828 41,407,489
------------ ------------
Cash flows from investing activities:
Purchases of fixed assets (865,459) (619,560)
Proceeds from sale of fixed assets 400 128,650
Notes receivable advances (122,851) (359,357)
Purchase of investments (10,937,155) (171,344)
Sale of securities 9,500,000 783,570
Investments in limited partnerships (65,000) (200,000)
------------ ------------
Net cash used in investing activities (2,490,065) (438,041)
------------ ------------
Cash flows from financing activities:
Issuance of restricted units 81,274
Cash distributions paid (34,540,341) (33,867,549)
------------ ------------
Net cash used in financing activities (34,459,067) (33,867,549)
------------ ------------
Net increase in cash and cash equivalents 86,696 7,101,899
Cash and cash equivalents, beginning of period 41,311,545 34,915,170
------------ ------------
Cash and cash equivalents, end of period $ 41,398,241 $ 42,017,069
============ ============
Supplemental disclosures:
Taxes paid $ 232,845 $ 321,957
============ ============
Interest paid $ 67,083 $ -
============ ============
</TABLE>
See accompanying notes.
<PAGE>
PIMCO Advisors L.P.
Notes to Consolidated Financial Statements
(Unaudited)
1) The condensed consolidated financial statements included herein have
been prepared without audit in accordance with the instructions to Form 10-
Q pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures normally included
in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such rules
and regulations. In the opinion of PIMCO Partners, G.P., the General
Partner, all adjustments, consisting only of normal recurring adjustments,
necessary for a fair statement of (a) the financial condition at March 31,
1997 and December 31, 1996, (b) the results of operations for three-month
periods ended March 31, 1997 and 1996, and (c) the cash flows for the
three-month periods ended March 31, 1997 and 1996, for PIMCO Advisors L.P.
("PIMCO Advisors") have been made. It is suggested that these unaudited
condensed consolidated financial statements be read in conjunction with the
consolidated financial statements and notes included in PIMCO Advisors
Annual Report on Form 10-K for the year ended December 31, 1996. Certain
reclassifications have been made to conform the prior period presentation
to the current period presentation. These interim results may not be
indicative of the results which may occur in the future. (See Item 2 -
Management's Discussion and Analysis of Financial Condition and Results of
Operations - Results of Operations).
2) Earnings per unit are computed under the two-class method and are based
on the weighted average number of units outstanding, assuming the exercise
of dilutive unit options. See Exhibit 11 for the computation of the
weighted average number of units outstanding during the periods.
Distributions, on the units outstanding, are paid quarterly in arrears
to unitholders of record as of the thirtieth day of the first month
following each quarter-end.
3) On February 13, 1997, PIMCO Advisors and its affiliate, Thomson
Advisory Group Inc. ("TAG Inc."), and Oppenheimer Group, Inc. and its
subsidiary, Oppenheimer Financial Corp. signed a definitive agreement for
TAG Inc. to acquire a one-third, managing general partner interest in
Oppenheimer Capital (a general partnership), the 1 percent general partner
interest in Oppenheimer Capital, L.P. and 100% of the stock of Advantage
Advisers, an affiliate of Oppenheimer Group, which manages eight closed-end
funds. The transaction covers only the private interests Oppenheimer Group
holds in Oppenheimer Capital and Oppenheimer Capital, L.P. and does not
include the publicly traded units of Oppenheimer Capital, L.P. The
acquisition is subject to certain client, lender, Internal Revenue Service
and other approvals, and is expected to take up to six months to complete.
The agreement provides for the acquisition by TAG Inc. of the above
listed assets through a merger with Oppenheimer Group, Inc. in exchange for
total consideration of approximately $233 million in convertible preferred
stock to be issued by TAG Inc. and the assumption of approximately $32
million of debt. Subsequently, TAG Inc. will contribute the general partner
interest in Oppenheimer Capital to PIMCO Advisors, in exchange for
approximately $233 million of newly issued Class A Limited Partner Units,
at $25.50 per unit. PIMCO Advisors may be obligated in certain
circumstances to purchase such convertible preferred stock for its issue
price. PIMCO Advisors will account for this transaction using the purchase
method. After the closing, operating results for PIMCO Advisors will
include its proportionate share of the operating results of Oppenheimer
Capital.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
PIMCO Advisors L.P. and subsidiaries (the "Partnership" or "PIMCO Advisors") are
primarily involved in investment advisory services. The Partnership's strategy
is to pursue growth by marketing the investment management expertise,
performance record and reputation of its six institutional investment management
firms (the "Investment Management Firms"). The Investment Management Firms are
as follows:
Pacific Investment Management Company ("Pacific Investment Management") and
its wholly owned subsidiary, StocksPLUS Management, Inc. ("StocksPLUS"),
manages primarily fixed income investments, with approximately $91.6
billion in assets under management;
Columbus Circle Investors ("CCI") and its wholly owned subsidiary, Columbus
Circle Trust Company ("CCTC"), manages primarily equity and equity related
investments, with approximately $12.4 billion in assets under management;
Cadence Capital Management ("Cadence") manages equity and equity related
investments, with approximately $3.3 billion in assets under management;
Parametric Portfolio Associates ("Parametric"), manages equity and equity
related investments, with approximately $2.1 billion in assets under
management;
NFJ Investment Group ("NFJ"), manages equity and equity related
investments, with approximately $1.7 billion in assets under management;
and
Blairlogie Capital Management ("Blairlogie"), manages equity and equity
related investments, with approximately $665 million in assets under
management.
PIMCO Advisors, together with the Investment Management Firms,
sponsors and manages mutual funds for both institutional and retail investors.
PIMCO Funds. In January 1997, the Partnership restructured its
proprietary mutual funds into a single fund family called "PIMCO Funds" which
is comprised of two series: (i) PIMCO Funds: Pacific Investment Management
Series ("PIMCO Funds PIMS Series"), 20 funds advised by Pacific Investment
Management, and (ii) PIMCO Funds: Multi-Manager Series ("PIMCO Funds MMS
Series"), 21 funds advised by the Partnership and subadvised by the Investment
Management Firms and one independent subadvisor. The PIMCO Funds PIMS Series are
primarily fixed income funds and the PIMCO Funds MMS Series are primarily equity
funds. All PIMCO Funds are offered in up to five different share classes:
institutional and administrative share classes for institutional investors and,
for retail investors, Class A shares (which are "front end" load), Class B
shares (which are "back-end load"), and Class C shares (which are "level load").
The PIMCO Funds now feature a "unified fee" structure which has specified
advisory and administrative fees per fund. As a result, the Partnership and
Pacific Investment Management (and not the PIMCO Funds) bear the risk of
increases in service costs (including of third-party service providers such as
transfer agents) and will directly benefit from decreases in those costs.
RESULTS OF OPERATIONS FOR 1997 COMPARED TO 1996
PIMCO Advisors derives substantially all its revenues and net income from
advisory fees for investment management services provided to its institutional
and individual clients and advisory, distribution and servicing fees for
services provided to its two proprietary series of mutual funds ("Proprietary
Funds").
Generally, such fees are determined based upon a percentage of client assets
under management and are billed quarterly to institutional clients, either in
advance or arrears, depending on the agreement with the client, and monthly in
arrears to Proprietary Funds. Revenues are determined in large part based upon
the level of assets under management; which itself is dependent upon factors
including market conditions, client decisions to add or withdraw assets from
PIMCO Advisors management and from PIMCO Advisors ability to attract new
clients. In addition, PIMCO Advisors has certain accounts which are subject to
performance based fee schedules wherein performance relative to the S&P 500
Index or other benchmarks over a particular time period can result in additional
fees. Such performance based fees can have a significant effect on revenues, and
provide an opportunity to earn higher fees (as well as lower) than could be
obtained under fee arrangements based solely on a percentage of assets under
management.
<PAGE>
PIMCO Advisors consolidated 1997 first quarter revenues, including those of its
wholly owned distributor PIMCO Funds Distribution Company ("PFD"), were
$103.3 million compared to $91.2 million in the first quarter of 1996, up $12.1
million. Advisory revenues were $89.5 million in the first quarter of 1997
compared to $79.9 million for the same period in 1996, up $9.6 million. Advisory
revenue increases resulted from both the commitment of new assets by
institutional clients and from market appreciation. Performance based fees
amounted to $1.6 million during the first quarter of 1997 as compared to $3.5
million during the same period in 1996. The decrease in performance based fees
occurred principally in a product line which has less success outperforming its
benchmark, the S&P 500 Index.
Revenues by operating entity were as follows:
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1997 1996
-------- -------
(In millions)
<S> <C> <C>
Pacific Investment Management $ 57.1 $ 51.1
CCI 15.0 15.5
Cadence 5.1 4.0
Parametric 0.9 0.8
NFJ 1.9 1.7
Blairlogie 1.0 0.9
PFD 15.4 12.7
Other 6.9 4.5
------- -------
$ 103.3 $ 91.2
======= =======
</TABLE>
Compensation and benefits in the first quarter of 1997 of $45.2 million were
$3.9 million higher than the same period in 1996. These increases reflect
additional staffing, at both Pacific Investment Management and CCI, as well as
higher profit sharing expenses which are based on profits of each of the
investment advisor subsidiaries.
Commission expenses, incurred by PFD related to sales and servicing of retail
mutual funds, increased $1.3 million to $10.2 million in the three months of
1997 compared to the same period a year ago, reflecting higher trail commissions
due to an increased level of qualifying assets, as well as increased "up front"
commissions on higher current sales levels.
General and administrative expenses amounted to $5.5 million during the first
quarter 1997, an increase of $0.8 million over the same period a year ago. This
increase can be primarily attributed to the conversion of the retail share
classes of the PIMCO Funds to a fixed administrative fee basis resulting in
increases to this cost category for expenses previously borne directly by the
funds. There is a corresponding increase in revenues related to this conversion.
These incremental costs account for substantially all of this increase.
Occupancy and equipment has increased by $148,000 to $2.5 million in the first
quarter of 1997 from the same period a year ago, primarily due to additional
office space and equipment as a result of the additional staffing discussed
above.
Other expenses in the first quarter of 1997 increased by $2.0 million from 1996
due principally to increases in marketing and promotional costs and professional
fees as well as other increases reflective of inflation and increased staffing.
Net income per unit is computed under the two-class method which allocates net
income to Class A and Class B Limited Partner units in proportion to the
Operating Profit Available for Distribution for each class. Operating Profit
Available for Distribution is defined by PIMCO Advisors partnership agreement
and is computed as the sum of net income plus non-cash charges from the
amortization of intangible assets, non-cash compensation expenses arising from
option and restricted unit plans and losses of any subsidiary which is not a
flow-through entity for tax purposes. Class A Limited Partner and General
Partner units are entitled to a priority distribution of $1.88 per unit per year
until December 31, 1997. Because of this, the amount of Operating Profit
Available for Distribution allocated to such units is currently greater than the
amount allocated to Class B Limited Partner units. As a result, the net income
allocated per Class A Limited Partner and General Partner units is currently
greater than the net income allocated per Class B Limited Partner unit. Due to
the priority distribution, any dilution to net income per unit from the assumed
exercise of unit options is currently applied entirely to Class B Limited
Partner units.
<PAGE>
CAPITAL RESOURCES AND LIQUIDITY
PIMCO Advisors and its predecessor entities' combined business has not
historically been capital intensive. In general, working capital requirements
had been satisfied out of operating cash flow or short-term borrowings. PIMCO
Advisors will make quarterly profit-sharing payments and distributions to its
unitholders. PIMCO Advisors may need to finance profit-sharing payments using
short-term borrowings.
PIMCO Advisors had approximately $54.3 million of cash and cash equivalents and
short-term investments at March 31, 1997 compared to approximately $52.8 million
at December 31, 1996. PIMCO Advisors liquidity not otherwise used for quarterly
distributions will be used for general purposes including profit-sharing
payments and for brokers' commissions on sales of mutual fund shares distributed
without a front-end sales load. PIMCO Advisors believes that the level of such
commissions may increase in the future due to the introduction of new products
and mutual fund pricing structures which may require an alternate financing
source.
The Partnership distributes substantially all of its "Operating Profit Available
for Distribution", after appropriate reserves, to its partners. Distributions
are paid quarterly, in arrears, on the units outstanding to unitholders of
record on the thirtieth day of the first month following each quarter-end.
During the first three months of 1997, the Partnership distributed $0.47 per
Class A Limited Partner and General Partner unit and $0.464 per Class B Limited
Partner unit related to the fourth quarter of 1996's earnings. The Partnership
declared a first quarter distribution of $0.47 per Class A Limited Partner and
General Partner unit payable to holders of record on April 30, 1997. The payment
date for this distribution is May 15, 1997. The Partnership also declared a
first quarter distribution of $0.435 per Class B Limited Partner unit payable to
holders of record on April 30, 1997. The payment date for this distribution is
May 30, 1997.
PIMCO Advisors currently has no long-term debt. In April 1996, the Partnership
obtained a $25 million, four year revolving line of credit for working capital
purposes. During the first quarter of 1997, the Partnership borrowed $10 million
under this facility, which was repaid in full prior to March 31, 1997; there was
no outstanding balance at March 31, 1997.
ECONOMIC FACTORS
The general economy including interest rates, inflation and client responses to
economic factors will affect, to some degree, the operations of PIMCO Advisors.
As a significant portion of assets under management are fixed income funds,
fluctuations in interest rates could have a material impact on the operations of
PIMCO Advisors. PIMCO Advisors advisory business is generally not capital
intensive and therefore any effect of inflation, other than on interest rates,
is not expected to have a significant impact on its operations or financial
condition. Client responses to the economy, including decisions as to the amount
of assets deposited may also impact the operations of PIMCO Advisors. Any
resulting revenue fluctuations may or may not be recoverable in the pricing of
services offered by PIMCO Advisors.
During the first quarter of 1997, assets under management for PIMCO
Advisors and its subsidiaries increased $1.8 billion. While net cash inflows for
PIMCO Advisors, as a whole, were significant ($2.4 billion during the first
quarter of 1997), CCI experienced substantial net cash outflows during this
period, attributable in large part to underperformance measured against relevant
benchmarks. This trend started in 1995 and has continued in the second quarter
of 1997.
<PAGE>
PART II: OTHER INFORMATION
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBITS
11 Computations of Net Income Per Unit.
27 Financial Data Schedule.
(b) REPORTS ON FORM 8-K
A report on Form 8-K was filed on February 18, 1997 disclosing the
Agreement and Plan of Merger dated as of February 13, 1997 by and among
Oppenheimer Group, Inc., Oppenheimer Financial Corp., PIMCO Advisors L.P.
and Thomson Advisory Group Inc.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PIMCO Advisors L.P.
By /s/ William D. Cvengros
--------------------------------
William D. Cvengros
Chief Executive Officer
By /s/ Robert M. Fitzgerald
--------------------------------
Robert M. Fitzgerald
Principal Accounting Officer
MAY 14, 1997
<PAGE>
EXHIBIT 11
PIMCO Advisors L.P.
Computations of Primary Net Income Per Unit
(in thousands, except per unit amounts)
(Unaudited)
<TABLE>
<CAPTION>
For the three months ended March 31,
------------------------------------
General Partner
and Class A Class B
---------------- -----------------
<S> <C> <C> <C> <C>
1997 1996 1997 1996
---- ---- ---- ----
Net income $23,189 $19,363 $23,189 $19,363
======= ======= ======= =======
Weighted average number of units outstanding 40,946 40,921 32,965 32,961
Weighted average effect of Limited Partnership
unit options 1,743 1,474 2,232 1,355
------- ------- ------- -------
Weighted average number of units and unit
equivalents used to calculate net income
per unit 42,689 42,395 35,197 34,316
======= ======= ======= =======
Net income per unit $0.32 $0.31 $0.27 $0.19
======= ======= ======= =======
</TABLE>
PIMCO Advisors L.P.
Computations of Fully Diluted Net Income Per Unit
(in thousands, except per unit amounts)
(Unaudited)
<TABLE>
<CAPTION>
For the three months ended March 31,
------------------------------------
General Partner
and Class A Class B
---------------- -----------------
<S> <C> <C> <C> <C>
1997 1996 1997 1996
---- ---- ---- ----
Net income $23,189 $19,363 $23,189 $19,363
======= ======= ======= =======
Weighted average number of units outstanding 40,946 40,921 32,965 32,961
Weighted average effect of Limited Partnership
unit options 1,743 1,474 2,232 1,355
------- ------- ------- -------
Weighted average number of units and unit equivalents
used to calculate net income per unit 42,689 42,395 35,197 34,316
======= ====== ====== ======
Net income per unit $0.32 $0.31 $0.27 $0.19
======= ====== ====== ======
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PIMCO
ADVISORS L.P. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 41,398
<SECURITIES> 12,899
<RECEIVABLES> 61,682
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 122,070
<PP&E> 10,567 <F1>
<DEPRECIATION> 0
<TOTAL-ASSETS> 350,060
<CURRENT-LIABILITIES> 59,919
<BONDS> 0
0
0
<COMMON> 295,507 <F2>
<OTHER-SE> (9,244) <F3>
<TOTAL-LIABILITY-AND-EQUITY> 350,060
<SALES> 0 <F4>
<TOTAL-REVENUES> 103,306 <F5>
<CGS> 0 <F4>
<TOTAL-COSTS> 71,154 <F6>
<OTHER-EXPENSES> 9,002 <F7>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 23,742
<INCOME-TAX> 553
<INCOME-CONTINUING> 23,189
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 23,189
<EPS-PRIMARY> .32 <F8>
<EPS-DILUTED> .27 <F9>
<FN>
<F1> Net of accumulated depreciation and amortization.
<F2> Entity is a partnership. Amount shown represents Partners' Capital.
<F3> Amount shown comprises Unamortized Compensation.
<F4> The partnership is in the service business and has no sales or cost of
goods sold of tangible products.
<F5> Amount shown comprises revenues from services.
<F6> Amount shown comprises costs of services.
<F7> Amount shown is from amortization of intangible assets.
<F8> Amount shown is for the Partnership's General Partner and Class A Limited
Partner Units.
<F9> Amount is for the Partnership's Class B Limited Partner Units.
</FN>
</TABLE>
