<cover>
Annual Report October 31, 1995
PIMCO Advisors
Institutional Funds
Utility Stock Fund
Parametric International Equity Fund
<PAGE> 1
Statements of Operations
For the year ended October 31, 1995
<TABLE>
<CAPTION>
Parametric
$ in thousands Utility International
Stock Equity
Fund Fund
<S> <C> <C>
Investment Income:
Dividends, net of foreign taxes $ 554 $ 78
Interest 124 7
Total income 678 85
Expenses:
Investment advisory fees 67 18
Administration fees 37 20
Trustees' fees 1 0
Total expenses 105 38
Net Investment Income 573 47
Net Realized and Unrealized Gain
(Loss)
Net realized gain (loss) on (1,818) 877
investments
Net realized loss on foreign currency 0 (31)
transactions
Net change in unrealized appreciation
(depreciation) on investments 1,262 (897)
Net change in unrealized depreciation
on translation of assets and 0 (10)
liabilities denominated in foreign
currencies
Net Loss (556) (61)
Net Increase (Decrease) in Assets $ 17 $ (14)
Resulting from Operations
</TABLE>
See Notes to Financial Statements
<PAGE> 2
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Utility Stock Fund Parametric
International Equity
Fund
$ in thousands Period
Year ended from Year ended Year ended
October 31, January 3, October 31, October 31,
1995 1994 to 1995 1994
October
31, 1994
<S> <C> <C> <C> <C>
Increase (Decrease) in Net
Assets from:
Operations
Net investment income $ 573 $ 635 $ 47 $ 289
Net realized gain (loss) (1,818) (1,888) 846 13,409
Net change in unrealized
appreciation (depreciation) 1,262 (1,262) (897) (11,052)
on investments
Net change in unrealized
depreciation on translation
of assets and liabilities 0 0 (10) 0
denominated in foreign
currencies
Net increase (decrease) 17 (2,515) (14) 2,646
resulting from operations
Net equalization credits (2) 1 (155) (219)
(debits)
Distributions to Shareholders
From net investment income (575) (631) (22) (289)
In excess of net investment 0 0 0 (6)
income
From net realized capital 0 0 0 (10,789)
gains
Tax basis return of capital (2) 0 (877) (1,421)
Total distributions (577) (631) (899) (12,505)
Fund Share Transactions
Receipts for shares sold 84 26,967 300 796
Issued as reinvestment of 196 630 898 12,420
distributions
Cost of shares redeemed (23,378) (792) (7,798) (61,016)
Net increase (decrease)
resulting from Fund share (23,098) 26,805 (6,600) (47,800)
transactions
Total Increase (Decrease) in $(23,660) $ 23,660 $ (7,668) $ (57,878)
Net Assets
Net Assets
Beginning of period $ 23,660 $ 0 $ 7,668 $ 65,546
End of period * 0 23,660 0 7,668
* Including undistributed net $ 0 $ 4 $ 0 $ 0
investment income of:
</TABLE>
See Notes to Financial Statements
<PAGE> 3
<TABLE>
Financial Highlights
<CAPTION>
Selected Per Share Utility Stock Fund Parametric International Equity Fund
Data for the Year or
Period Ended:
10/31/95 10/31/94(a) 10/31/95 10/31/94 10/31/93 10/31/92 10/31/91 (b)
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value $ 8.79 $ 10.00 $ 9.89 $ 11.62 $ 8.74 $ 10.46 $ 10.00
beginning of period
Net investment income 0.22 0.24 0.04 0.06 0.10 0.11 0.07
Net realized and
unrealized gain 0.00 (1.21) 1.64 0.75 2.86 (1.68) 0.51
(loss)on
investments
Total income from
investment 0.22 (0.97) 1.68 0.81 2.96 (1.57) 0.58
operations
Dividends from net
investment income (0.22) (0.24) (0.04) (0.06) (0.08) (0.11) (0.07)
Distributions from
net realized capital 0.00 0.00 (1.64) (2.19) 0.00 0.00 (0.01)
gains
Distributions from 0.00 0.00 0.00 0.00 0.00 (0.04) 0.00
equalization
Tax basis return of (8.79) 0.00 (9.89) (0.29) 0.00 0.00 (0.04)
capital
Total distributions (9.01) (0.24) (11.57) (2.54) (0.08) (0.15) (0.12)
Net asset value end 0.00 8.79 0.00 9.89 11.62 8.74 10.46
of period
Total return 0.17%(c) (9.76)% 0.78%(c) 7.83% 33.85% (14.84)% 5.67%
Net assets end of $ 0 $23,660 $ 0 $7,668 $65,546 $48,623 $50,160
period (000's)
Ratio of expenses to 0.67%(c) 0.70%* 0.89%(c) 0.95% 0.95% 0.95% 0.99%*
average net assets
Ratio of net
investment income to 3.68%*(c) 3.20%* 1.03%*(c) 0.64% 0.78% 1.20% 1.20%*
average net assets
Portfolio turnover 69.00%(c) 59.16% 4.00%(c) 65.12% 3.46% 46.23% 3.31%
rate
(a) From commencement of operations on January 3, 1994.
(b) From commencement of operations on December 17, 1990.
(c) Information is for the period from November 1,
1994 to June 30, 1995.
* Annualized
</TABLE>
See Notes to Financial Statements
<PAGE>4
1. Significant Accounting Policies
The Utility Stock Fund and the Parametric International
Equity Fund (the "Funds") were series of the PIMCO Advisors
Institutional Funds (the "Trust"). The Trust is registered
under the Investment Company Act of 1940, as amended, as a
no-load, open-end management investment company established
as a "Massachusetts business trust". At October 31, 1995,
the Funds were terminated. Refer to "Funds Deactivation and
Liquidation" below.
Fund Deactivation and Liquidation. On June 30, 1995, the
institutional shareholders of the Utility Stock and
Parametric International Equity Funds redeemed 2,675,006 and
642,318 shares; respectively, (representing the issued and
outstanding shares of each Fund) at net asset value per
share. Concurrently, PIMCO Advisors L.P. ("PIMCO
Advisors"), as adviser to the Trust, funded an amount equal
to receivables, net of liabilities, in exchange for shares
of each Fund, in order to liquidate shareholders at June 30,
1995. PIMCO Advisors remained the sole shareholder of each
Fund until October 31, 1995, in order to conclude operations
of the Funds. On October 31, 1995, the Funds were
liquidated and all operations were terminated.
Security Valuations. Portfolio securities for which market
quotations were readily available were stated at market
value. Market value was determined on the basis of last
reported sales price, or if no sales were reported, the mean
between representative bid and asked quotations obtained
from a quotation reporting system or from established market
makers. Short-term investments having a maturity of 60 days
or less were valued at amortized cost, unless the amortized
cost did not approximate market value. Subject to the
foregoing, securities for which market quotations were not
readily available were valued at fair value as determined in
good faith under the direction of the Trust's Board of
Trustees.
Foreign Currency Translation. Securities and other assets
and liabilities denominated in foreign currencies were
translated into U.S. dollars using the foreign exchange
quotation in effect at 2:30 P.M. Eastern time. The cost of
foreign securities was translated at the exchange rate in
effect when investment was acquired. Income and expenses
were translated at the rate of exchange in effect at the
time of each transaction.
The Funds isolated that portion of the results of operations
resulting from changes in foreign exchange rates on
investments from fluctuations arising from changes in market
prices of securities held. Such fluctuations are included
with the net realized and unrealized gain or loss on foreign
currency transaction.
Reported net realized foreign exchange gains or losses arose
from sales of portfolio securities, sales and maturities of
short-term securities, sales of foreign currencies, currency
gains or losses realized between trade and settlement dates
on securities transactions, the difference between the
amounts of dividends, interest, and foreign withholding
taxes recorded on the Funds' books, and the U.S. dollar
equivalent of the amounts actually received or paid. Net
realized foreign exchange gains and losses arose from
changes in the value of assets and liabilities resulting
from changes in the exchange rate.
Dividends and Distributions to Shareholders. Dividends were
declared and paid quarterly to shareholders of record in the
Utility Stock Fund. The Parametric International Equity Fund
distributed its net investment income at least annually.
Distributions on any net realized capital gains were
declared and paid at least annually. Dividends and
distributions to shareholders were recorded on the ex-
dividend date.
Income dividends and capital gain distributions were
determined in accordance with income tax regulations which
may differ from generally accepted accounting principles.
These differences were primarily due to differing treatments
for foreign currency transactions, net operating losses,
deferral of wash sales, futures, and options.
Foreign Taxes on Dividends. Dividend income in the
statements of operations is shown net of foreign taxes
withheld on dividends from foreign securities. Foreign
taxes withheld were as follows: Utility Stock Fund - $4,995
and Parametric International Equity Fund - $11,385.
Federal Income Taxes. The Trust's policy is to comply with
the requirements of the Internal Revenue Code that are
applicable to regulated investment companies and to
distribute substantially all of its taxable income to its
shareholders. Accordingly, no Federal income tax provision
is required.
<PAGE> 5
Securities Transactions and Investment Income. Securities
transactions were recorded as of the trade date. Securities
purchased or sold on a when-issued or delayed-delivery basis
may be settled a month or more after the trade date.
Realized gains and losses from securities sold were recorded
on the identified cost basis. Dividend income was recorded
on the ex-dividend date. Interest income was recorded on
the accrual basis and includes the accretion of discounts
and amortization of premiums.
Equalization. Both Funds followed the accounting practice
known as equalization, by which a portion of the proceeds
from sales and costs of repurchases of Fund shares,
equivalent on a per share basis to the amount of
distributable investment income on the date of the
transaction, was credited or charged to undistributed
income. As a result, undistributed investment income per
share was unaffected by sales or redemptions of Fund shares.
2. Derivative Financial Instruments
Forward Foreign Currency Contracts. The Parametric
International Equity invested in forward foreign currency
contracts during the year ended October 31, 1995. These
contracts were used for the purpose of hedging against
foreign exchange risk arising from a fund's investment in
foreign securities. These contracts were "marked-to-market"
daily at the applicable translation rates and any resulting
unrealized gains or losses are recorded in the Fund's
financial statements. The Fund recorded realized gains or
losses at the time the forward contract was closed.
3. Fees, Expenses, and Related Party Transactions
Investment Advisory Fee. Under the Investment Advisory
Agreement, PIMCO Advisors received from the Funds a fee
based on an annual percentage of .45% of the average daily
net assets for the Utility Stock Fund and Parametric
International Equity Fund. The fee was accrued daily and
paid monthly.
Pursuant to an Investment Advisory Agreement and an
Administration Agreement, PIMCO Advisors provided investment
advisory services to the Trust and administers all of the
operations of the Trust and its Funds, and procured on
behalf of the Trust, at PIMCO Advisors' expense, certain
services including custodial, administrative, transfer
agency, portfolio accounting, dividend disbursing, auditing,
and ordinary legal services.
Under these agreements, the Funds were responsible for any
extraordinary expenses (such as litigation and
indemnification expenses), brokerage fees or other
transactional expenses for securities or other assets, taxes
(if any) paid by a Fund, interest on borrowing, and fees and
expenses of the independent trustees.
Administration Fee. Prior to August 16, 1995, PIMCO
Advisors served as the administrator to the Funds, pursuant
to an Administrative Agreement. Effective August 16, 1995,
Pacific Investment Management Company ("PIMCO") became
administrator to the Funds, pursuant to a new Administrative
Agreement. As under the previous Administration Agreement,
PIMCO received from the Funds an administrative fee at the
annual rate of .25% of the average daily net assets of the
Utility Stock Fund and of .50% of the average daily net
assets of the Parametric International Equity Fund.. The fee
was accrued daily and paid monthly.
Expense Limitation. PIMCO Advisors had undertaken to
reimburse the Trust for its operating expenses, exclusive of
class service fees, brokerage fees or other transactional
expenses, taxes paid by a fund, interest on borrowing and
extraordinary expenses, in excess of the sum of advisory and
administration fees as a percentage of daily net assets of
each fund, through October 31, 1995. No reimbursements were
made during the year ended October 31, 1995.
The Funds incurred $84,946 in investment advisory fees to
PIMCO Advisors for the year ended October 31, 1995.
The Funds incurred $57,175 in administration fees to PIMCO
Advisors for the year ended October 31, 1995.
The Funds incurred $560 in Trustees fees, advanced by PIMCO
Advisors on behalf of the Funds, for the year ended October
31, 1995. These expenses are allocated to the Funds of the
Trust according to their respective daily average net
assets.
Pursuant to a Portfolio Management Agreement, PIMCO
Advisors managed the Utility Stock Fund.
<PAGE> 6
Related Party Transactions. PIMCO Advisors Distribution
Company ("PADCO"), an indirect wholly-owned subsidiary of
PIMCO Advisors, served as the distributor of the Funds'
shares. Under the contract, all expenses relating to the
distribution of Fund shares were paid by PIMCO Advisors or
PADCO out of past profits and resources which may include
fees received by PIMCO Advisors.
Certain officers of PIMCO Advisors were also officers of the
Funds.
4. Purchases and Sales of Securities
Purchases and sales of securities (excluding short-term
investments) for the year ended October 31, 1995 were as
follows ($ in thousands):
<TABLE>
<CAPTION>
All securities (excluding
U.S. Government/Agency)
Purchases Sales
<S> <C> <C>
Utility Stock Fund $ 11,349 $ 34,232
Parametric 227 7,379
International Equity Fund
</TABLE>
5. Shares of Beneficial Interest
Changes in shares of beneficial interest were as follows
(shares in thousands):
<TABLE>
<CAPTION>
Parametric
Year Ended Utility International
October 31,1995 Stock Equity
Fund Fund
<S> <C> <C>
Shares sold 10 35
Issued as
reinvestment 24 109
of dividends
Shares redeemed (2,726) (919)
Net decrease (2,692) (775)
</TABLE>
<TABLE>
<CAPTION>
Year or Parametric
Period Ended Utility International
October 31,1994 Stock Equity
Fund (a) Fund
<S> <C> <C>
Shares sold 2,712 72
Issued as
reinvestment 70 1,317
of dividends
Shares redeemed (90) (6,255)
Net increase (decrease) 2,692 (4,866)
(a) From Commencement of Operations, January 3, 1994.
</TABLE>
<PAGE> 7
INDEPENDENT AUDITORS' REPORT
To the Trustees of the
PIMCO Advisors Institutional Funds
We have audited the accompanying statements of operations of
the Utility Stock Fund and Parametric International Equity
Fund (the "Funds") for the year ended October 31, 1995; the
statements of changes for the indicated periods ended
October 31, 1995 and 1994; and the financial highlights for
the Funds for the respective stated periods ended October
31, 1995, 1994, 1993, 1992 and 1991. These financial
statements and financial highlights are the responsibility
of the Funds' management. Our responsibility is to express
opinion on these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require that
we plan and perform the audit to obtain reasonable assurance
about whether the financial statements and financial
highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used
and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial
highlights present fairly, in all material respects, the
results of their operations, the changes in their net
assets, and the financial highlights tables for the
respective stated periods, in conformity with generally
accepted accounting principles.
DELOITTE & TOUCHE LLP
Costa Mesa, California
December 15, 1995
<PAGE> 8
Federal Income Tax Information
As required by the Internal Revenue Code regulations we are
to advise you within 60 days of the Trust's fiscal year end
(October 31, 1995) as to the tax status of capital gain
dividends, the dividend received deduction for corporations,
and the foreign tax credit.
Dividend Distributions. The following table provides rates
for the dividends distributed from net investment income, as
well as short-term and long-term capital gains.
Distributions from net investment income and short-term
capital gains are taxed as ordinary income. All rates are
shown as per share amounts.
<TABLE>
<CAPTION>
Net
Investment Short-Term Long-Term
Income Capital Gain Capital Gain
<S> <C> <C> <C>
Utility Stock Fund .2157 0 0
Parametric .0404 0 1.6423
International Equity Fund
</TABLE>
Dividend Received Deduction. Corporate shareholders are
generally entitled to take the dividend received deduction
on the portion of the Fund's dividend distribution that
qualifies under tax law. The percentage of each Fund's
fiscal 1995 net investment income dividends that qualify for
the corporate dividend received deduction are as follows:
Utility Stock Fund - 96.91%.
Foreign Taxed Paid. The Parametric International Equity,
elected to pass through foreign taxes paid by the Fund to
its shareholders in the amount designated below on a per
share basis. Accordingly, shareholders who report their
gross income dividends in a federal income tax return will
be entitled to deduct such foreign taxes, or claim a foreign
credit in computing their U.S. income tax liability, when
applicable. It is generally more advantageous to claim a
credit rather than to take a deduction. The following table
allocates the dividends and distributions paid by their
sources.
<TABLE>
<CAPTION> Parametric
International Equity Fund
Gross Foreign
Dividends Tax
<S> <C> <C>
Australia .0006 0
Austria .0133 .0003
Denmark .0008 .0001
France .0081 0
Germany .0114 .0011
Hong Kong .0095 0
Italy .0021 .0003
Japan .0280 .0042
Malaysia .0076 .0022
Netherlands .0109 .0016
Singapore .0016 .0004
Spain .0064 .0010
Sweden .0047 .0007
Switzerland .0102 .0015
United Kingdom .0532 .0076
Total 0.1684 0.021
</TABLE>
Shareholders are advised to consult their own tax adviser
with respect to the tax consequences of their investment in
the Trust. However, income received by tax-exempt
recipients need not be reported as taxable income. In
January 1996, you will be advised on IRS form 1099 DIV as to
the federal tax status of the dividends and distributions
received by you in calendar year 1995
