May 23, 1996
VIA EDGAR
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549
RE: PIMCO Funds: Equity Advisors Series
(formerly PIMCO Advisors Institutional Funds)
(File Nos. 33-36528; 811-6161)
Dear Sirs:
Attached for filing on behalf of PIMCO Funds: Equity
Advisors Series (the "Trust") pursuant to Rule 497(e) under
the Securities Act of 1933 is a copy, in electronic format,
of the Prospectus for the Trust dated March 1, 1996, as
supplemented May 23, 1996.
Please call me at (714) 760-4717 if you have questions
regarding this matter.
Sincerely,
Teresa A. Wagner
Vice President
TAW/smg
Attachments
SUPPLEMENT DATED MAY 23, 1996
TO PROSPECTUS DATED MARCH 1, 1996 OF
PIMCO FUNDS: EQUITY ADVISORS SERIES
The following changes have been made to the prospectus:
Cadence Small Cap Growth Fund
The investment policy of the Cadence Small Cap Growth
Fund has been amended to increase the permitted market
capitalizations of the Fund's portfolio companies, and
now provides that the Fund usually invests in
approximately 60 to 100 common stocks selected from a
universe of stocks with market capitalizations of $50
million to $1 billion at the time of investment.
Balanced Fund
Effective August 1, 1996, and subject to approval by
shareholders of the Balanced Fund, the portion of the
Balanced Fund invested in common stock ("Common Stock
Segment") will be allocated by the Adviser for
investment by NFJ Investment Group ("NFJ") and Cadence
Capital Management ("Cadence"). The portion of the
Common Stock Segment allocated to NFJ will be managed
in accordance with the investment policies of the NFJ
Diversified Low P/E Fund; the portion allocated to
Cadence will be managed in accordance with the
investment policies of the Cadence Capital Appreciation
Fund. Allocation of the Common Stock Segment to NFJ
and Cadence will vary from time to time as determined
by the Adviser. Until August 1, 1996, the Common Stock
Segment will continue to be managed by Parametric
Portfolio Associates as described on page 17 of the
Prospectus.
Effective fourth quarter of 1996, and subject to
certain regulatory filings, investment policies of the
Balanced Fund will be changed. Under these changes, up
to 10% of the portion of the Fund's assets allocated
for investment in fixed income debt securities ("Fixed
Income Securities Segment") may be invested in
securities rated below investment grade but rated B or
higher by Moody's Investors Service, Inc. ("Moody's")
or Standard & Poor's Corporation ("S&P") or, if not
rated by Moody's or S&P, determined by the Portfolio
Manager to be of comparable quality. High yield/high
risk fixed income securities rated lower than Baa by
Moody's or BBB by S&P, or of equivalent quality, are
not considered to be investment grade and are commonly
referred to as "junk bonds." While offering a greater
potential opportunity for capital appreciation and
higher yields than investments in higher rated fixed
income securities, high yield securities typically
entail greater potential price volatility and are
regarded as predominantly speculative with respect to
the issuer's continuing ability to meet principal and
interest payments.
The Fund may also invest up to 20% of the Fixed Income
Securities Segment in securities denominated in foreign
currencies, and may invest beyond this limit in U.S.
dollar-denominated securities of foreign issuers. For
more information regarding the special risks and
considerations associated with investing in the
securities of foreign issuers, see "Characteristics and
Risks of Securities and Investment Techniques - Foreign
Securities" on page 22 of the Prospectus.
Dividends
Beginning July 1, 1996, the NFJ Small Cap Value,
Cadence Capital Appreciation, Cadence Mid Cap Growth,
Cadence Micro Cap Growth, Cadence Small Cap Growth,
Columbus Circle Investors Core Equity, and Parametric
Enhanced Equity Funds will pay dividends from net
investment income annually instead of quarterly.
