<PAGE>
BALANCED
ENHANCED EQUITY
SMALL-CAP VALUE
EQUITY INCOME
MID-CAP EQUITY
VALUE
RENAISSANCE
CORE EQUITY
INTERNATIONAL GROWTH
SMALL-CAP GROWTH
MICRO-CAP GROWTH
CAPITAL APPRECIATION
MID-CAP GROWTH
INTERNATIONAL DEVELOPED
EMERGING MARKETS
[LOGO OF PIMCO FUNDS APPEARS HERE]
MULTI-
MANAGER
SERIES
Annual Report
June 30, 1998
<PAGE>
<TABLE>
<S> <C>
Contents
Chairman's Message 1
Market Review 2
Financial Highlights 18
Statement of Assets and Liabilities 26
Statement of Operations 28
Statement of Changes in Net Assets 30
Notes to Financial Statements 56
Report of Independent Accountants 63
Federal Income Tax Information 64
<CAPTION>
Fund Schedule of
Summary Investments
<S> <C> <C>
Emerging Markets Fund 4 34
International Developed Fund 5 36
Capital Appreciation Fund 6 38
Mid-Cap Growth Fund 7 39
Micro-Cap Growth Fund 8 41
Small-Cap Growth Fund 9 42
International Growth Fund 17 44
Renaissance Fund 17 45
Core Equity Fund 10 46
Mid-Cap Equity Fund 11 47
Equity Income Fund 12 48
Value Fund 13 49
Small-Cap Value Fund 14 50
Enhanced Equity Fund 15 52
Balanced Fund 16 54
</TABLE>
<PAGE>
Chairman's Letter
Dear PIMCO Funds Shareholder:
The financial markets continued their ascent during the past year, the magnitude
of which surprised many investors. For the one-year period ended June 30, 1998,
the stock market, as measured by the Standard & Poor's 500 Index of stocks, rose
30.2%. The overall bond market, as measured by the Lehman Aggregate Bond Index,
posted a 10.5% return.
A Rising Tide Investors have enjoyed a continuation of the bull market in stocks
that began nearly eight years ago. Since October 1990, the stock market has more
than tripled in value, with only one 10% correction. That setback occurred last
October, as the financial upheaval in Asia began to unfold. However, individual
investors viewed the market decline as a buying opportunity and stock prices
rebounded sharply during the first quarter of 1998. To a great extent, stocks
experienced a "cooling off" period during the second quarter, as performance was
mixed.
Turning to the bond market, the Asian crisis has been largely beneficial for
U.S. bonds. Due to uncertainty regarding events in Asia, many domestic and
foreign investors flocked to the relative security of high quality U.S. fixed
income securities. As a result, over the past year the yield on 30-year
Treasuries fell from 6.6% to 5.6%. This led to strong gains in the prices of
bonds, nearly across-the-board.
Looking Ahead As we head into the second half of the year, there are few signs
of a major reversal in most financial markets. However, it is unlikely that the
pace of the gains we have experienced in the past several years will continue.
While inflation is low and economic growth, though slowing, is still running at
a healthy pace, the financial crisis in Asia will be a drag on corporate profits
going forward and cast additional uncertainty into markets around the world.
On the following pages you will find a more complete review of the stock and
bond markets, as well as specific statistics and commentary regarding each of
the Funds.
As always, we appreciate the trust you have placed in us, and we will continue
to focus our effort to help you meet your financial objectives. If you have any
questions regarding your investment, please contact your account manager. You
can also visit our Web site at www.pimcofunds.com, or call one of our
shareholder services associates at 1-800-927-4648.
Sincerely,
/s/ William D. Cvengros
William D. Cvengros
Chairman of the Board
July 21, 1998
1998 Annual Report 1
<PAGE>
Market Review
Stocks rose sharply during the last year, due in large part to a rebound during
the first quarter of the year.
[LINE GRAPH APPEARS HERE]
PRICE TABLE
S&P 500 INDEX
<TABLE>
<CAPTION>
DATE PRICE DATE PRICE DATE PRICE DATE PRICE
---- ----- ---- ----- ---- ----- ---- -----
<S> <C> <C> <C> <C> <C> <C> <C>
6/26 1133.20 3/27 1095.44 12/26 936.46 9/26 945.22
6/19 1100.65 3/20 1099.16 12/19 946.78 9/19 950.51
6/12 1098.84 3/13 1068.61 12/12 953.39 9/12 923.91
6/ 5 1113.86 3/ 6 1055.69 12/ 5 983.79 9/ 5 929.05
5/29 1090.82 2/27 1049.34 11/28 955.40 8/29 899.47
5/22 1110.47 2/20 1034.21 11/21 963.09 8/22 923.54
5/15 1108.73 2/13 1020.09 11/14 928.35 8/15 900.81
5/ 8 1108.14 2/ 6 1012.46 11/ 7 927.51 8/ 8 933.54
5/ 1 1121.00 8/ 1 947.14
4/24 1107.90 1/30 980.28 10/31 914.62 7/25 938.79
4/17 1122.72 1/23 957.59 10/24 941.64 7/18 915.30
4/10 1110.67 1/16 961.51 10/17 944.16 7/11 916.68
4/ 3 1122.70 1/ 9 927.69 10/10 966.98 7/ 4 916.92
1/ 2 975.04 10/ 3 965.03
</TABLE>
The Stock Market
The Bull Market Continues
While the overall performance of the stock market has been extremely positive,
the shorter-term performance of stocks depended on the calendar quarter
examined. This up-and-down trend was particularly evident during the past three
quarters.
In the fourth quarter of 1997, stocks fell sharply from their record levels
in response to the mounting Asian currency crisis. This was punctuated by a 554
point drop in the Dow Jones Industrial Average in late October.
However, during the first quarter of 1998, concerns regarding the Asian
situation were put aside, as investors chose to focus on the strong domestic
economy, low inflation and healthy corporate earnings. The result was a stock
market that increased 14% during the three-month period.
The second quarter of 1998 was mediocre. While large-cap stocks on the
whole posted gains, the best returns were mostly limited to the largest 50
companies, known as the "nifty 50." On the other hand, many "smaller"
large-caps, mid-cap and small-cap stocks experienced losses during the quarter.
The superior returns of the largest-cap stocks have been somewhat of a
surprise. For the one-year period ended June 30, 1998, large-caps posted a 30.2%
return, versus a 16.5% return from small-cap and a 27.1% return for mid-cap
stocks. Because most of the largest-cap firms are multi-national in nature, one
might expect them to be most susceptible to the weakened Asian economies.
Despite this, investors seemed comfortable with these firms' large size and
market presence.
Another important trend has been the strong results from technology stocks.
This was especially true among Internet firms that have been benefiting from
increased Web traffic and rising advertising revenues. High tech performance was
particularly strong during the first six months of this year, as these stocks
registered a 20.7% return, outperforming even large-cap stocks.
In the international markets, many European countries have posted extremely
strong returns. On the other hand, the dramatic bear market taking place in Asia
has spread to many other emerging market regions, including South America.
Looking ahead, we remain cautiously optimistic about the prospects for the
stock market. Yet, we caution investors to trim their expectations, especially
in light of the very strong performance from stocks over the past several years.
We believe a well-diversified portfolio will be instrumental in achieving your
long-term goals.
2 PIMCO Funds
<PAGE>
Bond prices have risen in the last year, as interest rates have fallen.
[LINE GRAPH APPEARS HERE]
30 Year Treasury Rates
<TABLE>
<CAPTION>
DATE DATE DATE DATE
------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
6/26 5.632 3/27 5.958 12/26 5.899 9/26 6.367
6/19 5.669 3/20 5.885 12/19 5.922 9/19 6.378
6/12 5.662 3/13 5.893 12/12 5.925 9/12 6.587
6/ 5 5.787 3/ 6 6.018 12/ 5 6.083 9/ 5 6.641
5/29 5.802 2/27 5.923 11/28 6.054 8/29 6.611
5/22 5.900 2/20 5.871 11/21 6.033 8/22 6.648
5/15 5.972 2/13 5.849 11/14 6.113 8/15 6.546
5/ 8 5.977 2/ 6 5.920 11/ 7 6.155 8/ 8 6.635
5/ 1 5.933 8/ 1 6.453
4/24 5.945 1/30 5.800 10/31 6.153 7/25 6.453
4/17 5.876 1/23 5.970 10/24 6.273 7/18 6.530
4/10 5.881 1/16 5.809 10/17 6.439 7/11 6.529
4/ 3 5.794 1/ 9 5.728 10/10 6.430 7/ 4 6.627
1/ 2 5.838 10/ 3 6.294
</TABLE>
The Bond Market
Strong Returns Abound
Bonds have also been enjoying a continuation of their bull market. During the
past year, most sectors of the bond market posted double-digit gains, as
long-term interest rates fell over one full percentage point.
There were several "sub-plots" that contributed to the market's solid
performance. These included the strong U.S. dollar, low inflation, the flight to
high quality U.S. debt, and the renewed popularity of bond funds. During the
first half of 1998 alone, sales of bond funds eclipsed total sales in 1997, as
equity investors became cautious of an eventual market correction.
But perhaps the most important factor behind the bond market's rise was the
ongoing Asian financial crisis. As our bond market expert Bill Gross has said,
"It's almost as if Asia's loss has been our gain." When the crisis first took
shape late in 1997, U.S. interest rates began to fall, as investors flocked to
safer, more liquid fixed income securities. And during the second quarter of
this year, when it was apparent that the economic woes from Asia were not going
to simply disappear, bond prices again rose. In fact, during the second quarter
the bond market on the whole outperformed many sectors of the stock market.
As we look toward the remainder of the year, the prospects for the U.S.
economy have rarely seemed brighter, and this could hold true for many European
countries as well. While our growth rate of exports is beginning to slow down,
our imports are much cheaper now than before, and the benefits of falling oil
prices and declining interest rates have benefited many investors.
There are certainly some threats. Six to twelve months of a less than
"exuberant" stock market may take the luster off of the wealth effect and slow
consumption for at least part of the next few years. Then too, our skyrocketing
dollar could lead to an unhealthy trade deficit. As exports fall and imports
rise, corporate profits could begin to slow, which could erode consumer
confidence and their propensity to spend.
But all told, with inflation under control in the 1-2% range, it appears we
have the ingredients for a continued bull market in bonds. We therefore remain
bullish on the outlook for bond prices and forecast perhaps the last leg
downward of this now 17-year bull market. Long-term Treasury yields over the
next few years could range between 4 1/2 and 6 1/2% with the 5% "handle"
containing most of the movement.
1998 Annual Report 3
<PAGE>
PIMCO Emerging Markets Fund
- --------------------------------------------------------------------------------
FUND CHARACTERISTICS
- --------------------------------------------------------------------------------
Portfolio Manager:
Blairlogie Capital Management
Edinburgh, Scotland
Objective and Primary Investments:
Seeks long-term growth of capital; invests primarily in common stocks of
companies located in emerging market countries.
Total Net Assets:
$28 million
Top Ten Common Stocks:*
Company
- ----------------------------------------
Magyar Tavkozlesi Rt. 2.9%
- ----------------------------------------
YPF Sociedad Anonima - ADR 2.5%
- ----------------------------------------
Telefonos de Mexico - ADR 2.3%
- ----------------------------------------
Turkiye IS Bankasi `C' 2.2%
- ----------------------------------------
Compania de Telecomunicaciones
de Chile SA SP - ADR 2.2%
- ----------------------------------------
Telecomunicacoes Brasileiras - ADR 2.1%
- ----------------------------------------
Telefonica de Argentina - ADR 2.1%
- ----------------------------------------
Telefonica del Peru SA `B' 2.1%
- ----------------------------------------
MOL Magyar Olaj-es Gazipare 2.0%
- ----------------------------------------
Enersis SA SP - ADR 1.9%
- ----------------------------------------
Top Ten Total 22.3%
Country Classifications:*
[PIE CHART APPEARS HERE]
Israel 13.0%
Turkey 11.6%
Brazil 9.9%
Chile 9.3%
Mexico 9.1%
Argentina 8.3%
Hungary 7.8%
South Africa 6.3%
Portugal 6.1%
Poland 4.6%
Other 14.0%
*% of Total Investments as of June 30, 1998
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended June 30, 1998
<TABLE>
<CAPTION>
Inst'l Class Admin. Class MSCI Emerging Lipper Emerging
(Incep. 6/1/93) (Incep. 11/1/94) Markets Free Index Markets Fund Average
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 Year (27.08%) (27.31%) (39.08%) (31.87%)
3 Years* (4.51%) (4.78%) (9.33%) (4.45%)
5 Years* 2.12% -- 0.44% (0.68%)
Since Inception* 2.38% (11.56%) -- --
</TABLE>
* Annualized
CUMULATIVE RETURNS THROUGH JUNE 30, 1998
$5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Emerging MSCI
MONTH Markets Emerging
Fund Markets Free
Index
=================== ========== ============
<S> <C> <C>
05/31/93 5,000,000 5,000,000
06/30/93 5,075,000 5,148,164
09/30/93 5,855,000 5,940,002
12/31/93 7,823,240 7,876,635
03/31/94 7,471,168 7,164,494
06/30/94 7,227,825 7,061,365
09/30/94 8,781,082 8,527,143
12/31/94 7,214,695 7,300,454
03/31/95 5,850,342 6,396,700
06/30/95 6,472,487 7,060,511
09/30/95 6,423,370 7,015,231
12/31/95 6,310,276 6,921,378
03/31/96 6,728,758 7,352,446
06/30/96 6,971,038 7,659,393
09/30/96 6,673,695 7,382,713
12/31/96 6,614,667 7,337,556
03/31/97 7,184,801 7,958,529
06/30/97 7,727,259 8,640,158
09/30/97 7,184,801 7,865,285
12/31/97 6,481,820 6,487,490
03/31/98 6,786,261 6,889,654
06/30/98 5,634,921 5,263,498
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 6/1/93, the Fund's Institutional Class
inception, compared to the Morgan Stanley Capital International (MSCI) Emerging
Markets Free Index, an unmanaged market index. The performance of the
Administrative Class (shown above) reflects the payment of a service fee in an
amount not to exceed 0.25% on an annualized basis. The Administrative Class
commenced operations on 11/1/94. The performance since inception (shown above)
begins 11/1/94. The Fund may invest in foreign securities which involve
potentially higher risks including foreign currency fluctuations and political
or economic uncertainty.
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
. For the 12-month period ended June 30, 1998, the Institutional Class
shares declined 27.08% and Administrative Class shares fell 27.31%.
Although absolute returns were negative, relative performance was
strong. The Fund outperformed the average return of offerings with the
same objective (as measured by the Lipper Emerging Markets Fund
Average) which fell 31.87%, and outpaced the negative 39.08% return of
its performance benchmark, the MCSI Emerging Markets Free Index.
. The collapse of the Asian markets during the past 12 months led to a
contagious sense of panic among emerging market investors. Rapidly
selling off their holdings, these investors drove prices down even
further. The Fund's manager was able to protect portions of the Fund's
assets through careful country selections.
. The Fund realized solid contributions from investments in the Greek
market, as well as Israel and Turkey. In Turkey the Fund's
finance-related holdings did particularly well, including Turkiye IS
Bankasi `C'.
. The Fund saw disappointing results from its Russian holdings. Despite
promising opportunities earlier in the year, actual 12-month market
results were poor. Hindering the Russian market during this period was
constant alarm about President Yeltsin's health, a shake-up in the
government cabinet, corruption and a widespread disaffection with
capitalism.
. Financial and political mayhem continued in the Asian markets
throughout the year. While some managers saw this situation as a buying
opportunity, the Emerging Market Fund avoided any significant activity
in the Asian emerging markets. The current strategy has spared the Fund
from some of the extreme volatility and losses associated with Asia
this year.
4 PIMCO Funds
<PAGE>
PIMCO International Developed Fund
- --------------------------------------------------------------------------------
FUND CHARACTERISTICS
- --------------------------------------------------------------------------------
Portfolio Manager:
Blairlogie Capital Management
Edinburgh, Scotland
Objective and Primary Investments:
Seeks long-term growth of capital; invests primarily in a diversified portfolio
of international equity securities.
Total Net Assets:
$139 million
Top Ten Common Stocks:*
Company
- ----------------------------------------
Nokia OYJ `A' 2.4%
- ----------------------------------------
SAP AG-Vorzug 1.7%
- ----------------------------------------
Royal Dutch Petroleum Co. 1.5%
- ----------------------------------------
Novartis AG 1.3%
- ----------------------------------------
ENI SpA 1.3%
- ----------------------------------------
Mannesmann AG 1.2%
- ----------------------------------------
Elf Aquitaine SA 1.2%
- ----------------------------------------
Bayer AG 1.2%
- ----------------------------------------
Lafarge SA 1.2%
- ----------------------------------------
Telefonica de Espana 1.1%
- ----------------------------------------
Top Ten Total 14.1%
Country Classifications:*
[PIE CHART APPEARS HERE]
France 15.3%
Germany 13.2%
United Kingdom 10.9%
Japan 10.5%
Italy 8.2%
Switzerland 6.4%
Netherlands 5.7%
Spain 5.4%
Finland 5.3%
Portugal 4.2%
Other 14.9%
*% of Total Investments as of June 30, 1998
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended June 30, 1998
<TABLE>
<CAPTION>
Inst'l Class Admin. Class MSCI Lipper International
(Incep. 6/8/93) (Incep. 11/30/94) EAFE Index Fund Average
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 Year 15.69% 15.33% 6.38% 8.19%
3 Years* 14.69% 14.36% 11.01% 12.78%
5 Years* 13.04% -- 10.34% 12.22%
Since Inception* 12.12% 13.18% -- --
</TABLE>
* Annualized
CUMULATIVE RETURNS THROUGH JUNE 30, 1998
$5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
International EAFE
MONTH Developed Fund Index
========= ============== =========
<S> <C> <C>
06/30/93 5,000,000 5,000,000
07/31/93 5,201,655 5,176,175
09/30/93 5,423,992 5,335,144
12/31/93 5,479,424 5,384,757
03/31/94 5,714,257 5,576,499
06/30/94 6,022,148 5,865,215
09/30/94 6,011,711 5,874,779
12/31/94 5,865,613 5,818,871
03/31/95 6,061,496 5,931,805
06/30/95 6,115,908 5,979,592
09/30/95 6,616,498 6,233,643
12/31/95 6,870,485 6,491,044
03/31/96 7,084,285 6,683,486
06/30/96 7,246,079 6,794,164
09/30/96 7,153,626 6,790,805
12/31/96 7,270,848 6,903,981
03/31/97 7,173,579 6,800,768
06/30/97 7,976,047 7,688,586
09/30/97 7,830,144 7,638,801
12/31/97 7,410,313 7,045,980
03/31/98 8,815,051 8,087,916
06/30/98 9,227,451 8,179,226
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 7/1/93, the first full month following
the Fund's Institutional Class inception on 6/8/93, compared to the Morgan
Stanley Capital International (MSCI) EAFE Index (Europe, Australasia, Far East),
an unmanaged market index. The performance of the Administrative Class (shown
above) reflects the payment of a service fee in an amount not to exceed 0.25% on
an annualized basis. The Administrative Class commenced operations on 11/30/94.
The Fund may invest in foreign securities which involve potentially higher risks
including foreign currency fluctuations and political or economic uncertainty.
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
. The International Developed Fund posted excellent results for
the 12-month period ended June 30, 1998, with returns of 15.69% and
15.33% for Institutional and Administrative Class shares, respectively.
These results significantly outperformed the 6.38% return of the MSCI
EAFE Index, the Fund's benchmark.
. The Fund's year-long strategy of overweighting continental Europe at
the expense of the United Kingdom and Asia proved to be a major
contributor to this strong 12-month performance. The Fund's success in
Europe was due to a combination of positive macroeconomic forces and
corporate-specific success. The manager invested a significant portion
of the Fund's assets in continental Europe, approximately 64% as of
June 30, 1998, compared to 51% for the MSCI EAFE Index, and realized
significant contributions from selected holdings in France, Italy and
Finland.
. The UK had been enjoying its own private boom for several years, but
the increasingly strong British Pound is hurting domestic manufacturers
dependent on exporting and the UK's traditional trading links with Asia
have depressed corporate earnings in many sectors. As a result, the
Fund has taken a cautious approach to investment in this region, ending
the period with a UK weighting of only 11% versus the benchmark
weighting of 22%.
. Troubles in the Asian markets continued to keep the Fund's manager
largely out of this region as well. The manager harbors doubts about
the Japanese government's ability to stimulate its economy out of
recession.
1998 Annual Report 5
<PAGE>
PIMCO Capital Appreciation Fund
- --------------------------------------------------------------------------------
FUND CHARACTERISTICS
- --------------------------------------------------------------------------------
Portfolio Manager:
Cadence Capital Management
Boston, Massachusetts
Objective and Primary Investments:
Seeks growth of capital; invests primarily in common stocks of companies with
market capitalizations of at least $100 million that have improving fundamentals
and whose stock is reasonably valued by the market.
Total Net Assets:
$1,124 million
Top Ten Common Stocks:*
Company
- ----------------------------------------
Capital One Financial Corp. 2.1%
- ----------------------------------------
Cognizant Corp. 1.9%
- ----------------------------------------
Costco Cos., Inc. 1.9%
- ----------------------------------------
Safeway, Inc. 1.8%
- ----------------------------------------
Carnival Corp. `A' 1.8%
- ----------------------------------------
Omnicom Group, Inc. 1.8%
- ----------------------------------------
TJX Cos., Inc. 1.7%
- ----------------------------------------
Jones Apparel Group, Inc. 1.7%
- ----------------------------------------
Cisco Systems, Inc. 1.6%
- ----------------------------------------
Dayton Hudson Corp. 1.4%
- ----------------------------------------
Top Ten Total 17.7%
Industry Classifications:*
[PIE CHART APPEARS HERE]
Financial and Business Services 27.7%
Consumer Discretionary 13.5%
Technology 9.8%
Health Care 9.5%
Consumer Services 8.4%
Capital Goods 6.9%
Consumer Staples 6.2%
Transportation 4.1%
Other 13.9%
*% of Total Investments as of June 30, 1998
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended June 30, 1998
<TABLE>
<CAPTION>
Lipper Capital
Inst'l Class Admin. Class Appreciation
(Incep. 3/8/91) (Incep. 7/31/96) S&P 500 Index Fund Average
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 Year 32.97% 32.55% 30.16% 22.12%
3 Years* 29.67% -- 30.24% 20.35%
5 Years* 22.14% -- 23.08% 16.02%
Since Inception* 20.77% 37.20% -- --
</TABLE>
* Annualized
CUMULATIVE RETURNS THROUGH JUNE 30, 1998
$5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Capital S&P 500
MONTH Appreciation Index
Fund
========= ============ =========
<S> <C> <C>
03/31/91 5,000,000 5,000,000
04/30/91 4,854,350 5,012,000
06/30/91 4,820,061 4,989,052
09/30/91 5,253,318 5,256,026
12/31/91 6,008,526 5,696,591
03/31/92 5,817,823 5,552,878
06/30/92 5,646,491 5,658,669
09/30/92 5,816,058 5,837,050
12/31/92 6,459,843 6,130,939
03/31/93 6,904,241 6,398,680
06/30/93 7,153,400 6,429,835
09/30/93 7,525,186 6,595,972
12/31/93 7,603,513 6,748,903
03/31/94 7,377,445 6,492,973
06/30/94 7,191,566 6,520,301
09/30/94 7,384,297 6,839,131
12/31/94 7,279,887 6,838,055
03/31/95 7,973,994 7,503,845
06/30/95 8,920,691 8,220,215
09/30/95 9,884,778 8,873,410
12/31/95 9,983,895 9,407,652
03/31/96 10,731,348 9,912,614
06/30/96 11,121,089 10,357,452
09/30/96 11,692,504 10,677,563
12/31/96 12,658,812 11,567,641
03/31/97 12,776,151 11,877,772
06/30/97 14,625,966 13,951,386
09/30/97 16,544,805 14,996,459
12/31/97 16,991,599 15,426,988
03/31/98 18,949,019 17,578,870
06/30/98 19,447,678 18,159,332
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 4/1/91, the first full month following
the Fund's Institutional Class inception on 3/8/91, compared to the S&P 500
Index, an unmanaged market index. The performance of the Administrative Class
(shown above) reflects the payment of a service fee in an amount not to exceed
0.25% on an annualized basis. The Administrative Class commenced operations on
7/31/96.
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
. For the 12-months ended June 30, 1998, the Capital Appreciation Fund
posted outstanding returns of 32.97% and 32.55% for Institutional and
Administrative Class shares, respectively. This allowed the Fund to
outperform the market in general (as measured by the S&P 500 Index),
and also surpass the 22.12% average return of funds with the same
objective (as measured by the Lipper Capital Appreciation Fund
Average).
. Strong performance from the Fund's technology holdings was instrumental
in achieving these impressive returns. In general, the sector saw rapid
growth in the networking and internet areas. In addition, computer
companies were aided by lower costs and robust demand from both North
America and Europe.
. Cisco Systems, Inc., a leader in the networking industry, was one
success story. Cisco Systems has been chosen as a supplier by major
companies like Kaiser Permanente, the world's largest HMO. Cisco
Systems also benefited from announced partnerships with Dell Computer
Corp. and IBM Corp. which will allow the company to provide internet
access at much faster speeds than are currently available.
. Another top performer for the Fund was Dell Computer Corp. Much of the
company's success can be traced to its practice of only manufacturing
products upon order, which means no inventory and greatly reduced
overhead costs. Dell Computer has also benefited from focusing on
government and corporate clients.
. Tempering the Fund's results this year were most of its energy holdings
which had been major contributers to performance in 1997.
Unfortunately, a drop in demand and a fall in the price of crude oil
meant companies were not hiring drillers, lowering their day rates and
negatively affecting profits.
6 PIMCO Funds
<PAGE>
PIMCO Mid-Cap Growth Fund
- --------------------------------------------------------------------------------
FUND CHARACTERISTICS
- --------------------------------------------------------------------------------
Portfolio Manager:
Cadence Capital Management
Boston, Massachusetts
Objective and Primary Investments:
Seeks growth of capital; invests primarily in common stocks of companies with
market capitalizations in excess of $500 million that have improving
fundamentals and whose stock is reasonably valued by the market.
Total Net Assets:
$794 million
Top Ten Common Stocks:*
Company
- ----------------------------------------
Unisys Corp. 1.6%
- ----------------------------------------
Compuware Corp. 1.5%
- ----------------------------------------
Borders Group, Inc. 1.5%
- ----------------------------------------
Network Associates, Inc. 1.5%
- ----------------------------------------
Providian Financial Corp. 1.4%
- ----------------------------------------
Royal Caribbean Cruises Limited 1.4%
- ----------------------------------------
Citrix Systems, Inc. 1.3%
- ----------------------------------------
Waters Corp. 1.3%
- ----------------------------------------
Ambac, Inc. 1.2%
- ----------------------------------------
Proffitt's, Inc. 1.2%
- ----------------------------------------
Top Ten Total 13.9%
Industry Classifications:*
[PIE CHART APPEARS HERE]
Financial and Business Services 25.3%
Technology 15.1%
Consumer Discretionary 12.1%
Health Care 9.2%
Consumer Staples 7.1%
Capital Goods 5.8%
Consumer Services 5.4%
Energy 3.8%
Other 16.2%
*% of Total Investments as of June 30, 1998
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended June 30, 1998
<TABLE>
<CAPTION>
Inst'l Class Admin. Class S&P 500 Lipper Mid-Cap
(Incep. 8/26/91) (Incep. 11/30/94) Mid-Cap Index Fund Average
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 Year 26.16% 25.75% 27.16% 22.22%
3 Years* 26.05% 25.69% 24.00% 20.42%
5 Years* 20.25% -- 18.45% 16.72%
Since Inception* 19.54% 28.64% -- --
</TABLE>
* Annualized
CUMULATIVE RETURNS THROUGH JUNE 30, 1998
$5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Mid-Cap S&P 500
MONTH Growth Mid-Cap
Fund Index
==================== =========== ===========
<S> <C> <C>
08/31/91 5,000,000 5,000,000
09/30/91 4,974,950 4,983,725
12/31/91 5,665,299 5,595,982
03/31/92 5,555,924 5,567,702
06/30/92 5,378,127 5,394,740
09/30/92 5,541,064 5,604,466
12/31/92 6,185,404 6,262,637
03/31/93 6,470,422 6,468,100
06/30/93 6,765,881 6,618,816
09/30/93 7,201,787 6,951,557
12/31/93 7,160,996 7,136,600
03/31/94 7,033,122 6,865,539
06/30/94 6,700,295 6,615,199
09/30/94 7,026,048 7,063,068
12/31/94 6,991,678 6,880,817
03/31/95 7,582,451 7,444,211
06/30/95 8,493,975 8,093,438
09/30/95 9,501,369 8,883,373
12/31/95 9,599,034 9,010,329
03/31/96 10,152,383 9,565,006
06/30/96 10,325,462 9,840,533
09/30/96 11,095,622 10,127,009
12/31/96 11,841,245 10,740,502
03/31/97 11,774,758 10,580,948
06/30/97 13,483,461 12,135,971
09/30/97 15,750,651 14,087,537
12/31/97 15,887,569 14,204,712
03/31/98 17,031,474 15,769,123
06/30/98 17,010,291 15,431,713
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 9/1/91, the first full month following
the Fund's Institutional Class inception on 8/26/91, compared to the S&P Mid-Cap
Index, an unmanaged market index. The performance of the Administrative Class
(shown above) reflects the payment of a service fee in an amount not to exceed
0.25% on an annualized basis. The Administrative Class commenced operations on
11/30/94.
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
. With results of 26.16% for Institutional Class shares, and 25.75% for
Administrative Class shares, the Mid-Cap Growth Fund had an excellent year
ended June 30, 1998. The Fund outperformed the 22.22% average return for
funds with the same objective (as measured by the Lipper Mid-Cap Fund
Average).
. Leading the Fund's success was the financial sector, including banks and
securities companies. This sector was supported by the generally strong
economy, allowing increased revenue and stock price growth. The technology
sector made significant contributions to performance as well.
. Unisys Corp., a provider of information technology solutions, has performed
well for the Fund. While the company was once primarily in the mainframe
business, it has been shifting its focus to computer services which
provides a more predictable revenue stream. The company was able to boost
its stock price significantly by augmenting this new strategy with efforts
to reduce debt and improve its balance sheet.
. Compuware Corp. was also a strong holding. Compuware has developed software
that can diagnose a system's vulnerability to the "Year 2000" Problem and
provide measures to correct it. As a result, the company's stock price has
increased in value.
. The Fund saw much less success from its holdings in the energy sector. The
manager traces a portion of the problems in this sector to the Asian
crisis. In addition, the price of crude oil fell dramatically over the past
six months. The end result was a hard hit to energy related stocks.
1998 Annual Report 7
<PAGE>
PIMCO Micro-Cap Growth Fund
- --------------------------------------------------------------------------------
FUND CHARACTERISTICS
- --------------------------------------------------------------------------------
Portfolio Manager:
Cadence Capital Management
Boston, Massachusetts
Objective and Primary Investments:
Seeks long-term growth of capital; invests primarily in common stocks of
companies with market capitalizations of less than $100 million that have
improving fundamentals and whose stock is reasonably valued by the market.
Total Net Assets:
$263 million
Top Ten Common Stocks:*
Company
- ----------------------------------------
Atlantic Coast Airlines Holdings 2.6%
- ----------------------------------------
Dendrite International, Inc. 2.3%
- ----------------------------------------
Mesaba Holdings, Inc. 2.1%
- ----------------------------------------
Cotelligent Group, Inc. 2.0%
- ----------------------------------------
CIBER, Inc. 1.9%
- ----------------------------------------
Winsloew Furniture, Inc. 1.9%
- ----------------------------------------
Movado Group, Inc. 1.9%
- ----------------------------------------
Crossmann Communities, Inc. 1.8%
- ----------------------------------------
Alabama National Bancorp 1.8%
- ----------------------------------------
Pillowtex Corp. 1.8%
- ----------------------------------------
Top Ten Total 20.1%
Industry Classifications:*
[PIE CHART APPEARS HERE]
Consumer Discretionary 28.5%
Financial and Business Services 19.3%
Capital Goods 9.0%
Technology 7.8%
Transportation 6.2%
Consumer Services 6.1%
Consumer Staples 4.2%
Health Care 2.4%
Other 16.5%
*% of Total Investments as of June 30, 1998
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended June 30, 1998
<TABLE>
<CAPTION>
Inst'l Class Admin. Class Lipper Micro-Cap
(Incep. 6/25/93) (Incep. 4/1/96) Russell 2000 Index Fund Average
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 Year 33.95% 33.70% 16.50% 23.94%
3 Years* 29.86% -- 18.85% 21.39%
5 Years* 24.91% -- 16.05% 16.69%
Since Inception* 24.79% 28.82% -- --
</TABLE>
* Annualized
CUMULATIVE RETURNS THROUGH JUNE 30, 1998
$5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Micro-Cap Russell 2000
MONTH Growth Index
Fund
========= =========== ============
<S> <C> <C>
06/30/93 5,000,000 5,000,000
07/31/93 5,021,687 5,069,050
09/30/93 5,442,666 5,437,157
12/31/93 5,893,716 5,579,823
03/31/94 5,763,413 5,431,753
06/30/94 5,487,771 5,220,213
09/30/94 5,958,868 5,582,590
12/31/94 5,953,856 5,478,183
03/31/95 6,124,253 5,730,740
06/30/95 6,941,154 6,267,918
09/30/95 7,813,183 6,886,946
12/31/95 8,111,989 7,036,188
03/31/96 8,444,657 7,395,160
06/30/96 9,452,898 7,765,118
09/30/96 9,601,319 7,791,416
12/31/96 10,044,807 8,196,760
03/31/97 9,581,728 7,772,822
06/30/97 11,348,288 9,032,885
09/30/97 13,800,890 10,377,483
12/31/97 13,730,013 10,029,924
03/31/98 15,561,110 11,038,738
06/30/98 15,201,315 10,523,557
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 7/1/93, the first full month following
the Fund's Institutional Class inception on 6/25/93, compared to the Russell
2000 Index, an unmanaged market index. The performance of the Administrative
Class (shown above) reflects the payment of a service fee in an amount not to
exceed 0.25% on an annualized basis. The Administrative Class commenced
operations on 4/1/96. The Fund may invest in stocks of small and intermediate
sized companies which may have less liquidity than those of larger companies and
may be subject to greater price volatility than the overall stock market.
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
. The Micro-Cap Growth Fund enjoyed strong relative performance during the
twelve-month period ended June 30, 1998 as Institutional Class shares
returned 33.95% and Administrative Class shares returned 33.70% versus the
16.50% return of the Russell 2000 Index, the Fund's benchmark.
. While absolute returns have been tempered by pressures on the secondary
stock markets, comparison of the Fund's returns with those of the Russell
2000 Index indicates that relative performance remained strong.
. The Fund continued to overweight stocks in the consumer goods and services
sector which boosted performance. Atlantic Coast Airlines Holdings, Stanley
Furniture Co., Inc. and Shoe Carnival, Inc. are Fund holdings that have
demonstrated growth, reasonable valuations and strong financial profiles.
. The Fund's increase in technology holdings over the period also benefited
returns. The Fund consciously avoided technology companies with significant
exposure to Asia due to the weakness in the region. Dendrite International,
Inc., a provider of sales force management software, and Applied Voice
Technology, a leader in call center and voice messaging systems, were
stand-out performers.
. The financial and business services sector continued to benefit
shareholders as the Fund held more in this sector compared to the Index.
Alabama National Bancorp led the performance parade, followed by CIBER,
Inc., an information technology service provider that has profited from an
increase in corporate spending on Year 2000 solutions and has developed
enterprising resource systems implementations.
8 PIMCO Funds
<PAGE>
PIMCO Small-Cap Growth Fund
- --------------------------------------------------------------------------------
FUND CHARACTERISTICS
- --------------------------------------------------------------------------------
Portfolio Manager:
Cadence Capital Management
Boston, Massachusetts
Objective and Primary Investments:
Seeks growth of capital; invests primarily in common stocks of companies with
market capitalizations between $50 million and $1 billion that have improving
fundamentals and whose stock is reasonably valued by the market.
Total Net Assets:
$49 million
Top Ten Common Stocks:*
Company
- --------------------------------------------------------------------------------
Coach USA, Inc. 1.5%
- --------------------------------------------------------------------------------
Fred Meyer, Inc. 1.4%
- --------------------------------------------------------------------------------
Mueller Industries, Inc. 1.4%
- --------------------------------------------------------------------------------
Lernout & Hauspie Speech Products NV 1.3%
- --------------------------------------------------------------------------------
Lone Star Industries, Inc. 1.3%
- --------------------------------------------------------------------------------
Manitowoc Co., Inc. 1.2%
- --------------------------------------------------------------------------------
Ethan Allen Interiors, Inc. 1.2%
- --------------------------------------------------------------------------------
Williams-Sonoma, Inc. 1.2%
- --------------------------------------------------------------------------------
Martin Marietta Materials, Inc. 1.2%
- --------------------------------------------------------------------------------
Windmere Durable Holdings 1.2%
- --------------------------------------------------------------------------------
Top Ten Total 12.9%
Industry Classifications:*
[PIE CHART APPEARS HERE]
Financial and Business Services 19.9%
Consumer Discretionary 19.1%
Technology 10.2%
Capital Goods 9.7%
Transportation 6.7%
Health Care 5.1%
Materials and Processing 5.1%
Consumer Staples 4.1%
Other 20.1%
*% of Total investments as of June 30, 1998
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended June 30, 1998
<TABLE>
<CAPTION>
Inst'l Class Admin. Class Lipper Small-Cap
(Incep. 1/17/91) (Incep. 9/27/95) Russell 2000 Index Fund Average
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 Year 19.33% 18.90% 16.50% 17.63%
3 Years* 19.80% -- 18.85% 19.68%
5 Years* 15.69% -- 16.05% 16.74%
Since Inception* 22.08% 16.00% -- --
* Annualized
</TABLE>
CUMULATIVE RETURNS THROUGH JUNE 30, 1998
$5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Small-Cap Russell 2000
MONTH Growth Fund Index
=================== =========== ============
<S> <C> <C>
01/31/91 5,000,000 5,000,000
02/28/91 5,463,287 5,560,750
03/31/91 5,843,531 5,950,725
06/30/91 5,766,171 5,858,483
09/30/91 6,383,633 6,336,132
12/31/91 6,995,446 6,699,007
03/31/92 7,247,813 7,201,466
06/30/92 6,694,376 6,710,181
09/30/92 6,955,598 6,902,452
12/31/92 8,162,949 7,932,403
03/31/93 9,066,884 8,271,465
06/30/93 9,374,314 8,452,035
09/30/93 10,250,718 9,191,009
12/31/93 10,158,807 9,432,172
03/31/94 9,979,534 9,181,873
06/30/94 9,631,853 8,824,285
09/30/94 10,316,350 9,436,850
12/31/94 10,214,126 9,260,359
03/31/95 10,437,578 9,687,283
06/30/95 11,296,106 10,595,333
09/30/95 13,160,169 11,641,742
12/31/95 12,445,286 11,894,022
03/31/96 13,037,010 12,500,831
06/30/96 13,253,339 13,126,211
09/30/96 13,717,811 13,170,664
12/31/96 14,540,393 13,855,860
03/31/97 13,738,667 13,139,233
06/30/97 16,277,466 15,269,253
09/30/97 18,877,002 17,542,170
12/31/97 18,425,982 16,954,654
03/31/98 20,380,883 18,659,961
06/30/98 19,424,230 17,789,095
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 2/1/91, the first full month following
the Fund's Institutional Class inception on 1/17/91, compared to the Russell
2000 Index, an unmanaged market index. The performance of the Administrative
Class (shown above) reflects the payment of a service fee in an amount not to
exceed 0.25% on an annualized basis. The Administrative Class commenced
operations on 9/27/95. The Fund may invest in stocks of small and intermediate
sized companies which may have less liquidity than those of larger companies and
may be subject to greater price volatility than the overall stock market.
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
. Small-Cap Growth Fund shareholders continued to enjoy favorable relative
performance for the 12-month period ended June 30, 1998. During this period
the Fund's Institutional Class and Administrative Class shares returned
19.33% and 18.90%, respectively, versus 16.50% for the Russell 2000 Index.
. The Fund's largest sector remains financial and business services. Amid
this sector's relatively benign activity, there were a few standout
performers including Metris Companies and Reinsurance Group of America.
Each experienced excellent growth in their core businesses.
. Consumer service stocks have performed well over the twelve-month period.
Familiar names like Coach USA, Inc., Williams-Sonoma, Inc., and Ethan Allen
Interiors, Inc. were among the top performing stocks. The best performer
was the retail-clothing distributor American Eagle Outfitters, Inc., which
rose 29.1% in the second quarter alone.
. Technology stocks performed well compared with either the Russell 2000
Index or its constituent stocks. The Fund's holdings were concentrated in
software and services rather than hardware and capital equipment. Lernout &
Hauspie Speech Products NV, the voice recognition and language translation
software manufacturer, led the way, rising 36%.
. Despite the disappointing performance of the capital goods and basic
materials sectors in general, several stocks added to Fund returns. Mueller
Industries, Inc. and Lone Star Industries, Inc. manufacture and distribute
various metals and cement, respectively. Each experienced increased demand
for their products and benefited from the general strength of the economy.
1998 Annual Report 9
<PAGE>
PIMCO Core Equity Fund
- --------------------------------------------------------------------------------
FUND CHARACTERISTICS
- --------------------------------------------------------------------------------
Portfolio Manager:
Columbus Circle Investors
Stamford, Connecticut
Objective and Primary Investments:
Seeks long-term growth of capital, with income as a secondary objective; invests
primarily in common stocks of companies with market capitalizations in excess of
$3 billion.
Total Net Assets:
$131 million
Top Ten Common Stocks:*
Company
- --------------------------------------------------------------------------------
HBO & Co. 4.4%
- --------------------------------------------------------------------------------
Sears, Roebuck & Co. 3.8%
- --------------------------------------------------------------------------------
America Online, Inc. 3.4%
- --------------------------------------------------------------------------------
Warner-Lambert Co. 3.0%
- --------------------------------------------------------------------------------
Safeway, Inc. 3.0%
- --------------------------------------------------------------------------------
Microsoft Corp. 3.0%
- --------------------------------------------------------------------------------
Capital One Financial Corp. 3.0%
- --------------------------------------------------------------------------------
Pfizer, Inc. 2.5%
- --------------------------------------------------------------------------------
Tele-Communications, Inc. 'A' 2.5%
- --------------------------------------------------------------------------------
CVS Corp. 2.4%
- --------------------------------------------------------------------------------
Top Ten Total 31.0%
Industry Classifications:*
[PIE CHART APPEARS HERE]
Consumer Discretionary 18.4%
Technology 17.2%
Health Care 15.9%
Financial and Business Services 12.5%
Consumer Staples 6.5%
Energy 5.7%
Communications 5.4%
Consumer Services 5.2%
Other 13.2%
*% of Total Investments as of June 30, 1998
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended June 30, 1998
<TABLE>
<CAPTION>
Inst'l Class Admin. Class Lipper Growth
(Incep. 12/28/94) (Incep. 5/31/95) S&P 500 Index Fund Average
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 Year 41.83% 41.54% 30.16% 25.38%
3 Years* 26.73% 26.43% 30.24% 23.85%
Since Inception* 28.55% 26.92% -- --
</TABLE>
* Annualized
CUMULATIVE RETURNS THROUGH JUNE 30, 1998
$5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Core Equity S&P 500
MONTH Fund Index
========= =========== ===========
<S> <C> <C>
12/31/94 5,000,000 5,000,000
01/31/95 5,034,965 5,129,650
03/31/95 5,339,660 5,486,828
06/30/95 5,921,094 6,010,639
09/30/95 6,422,032 6,488,256
12/31/95 6,397,852 6,878,895
03/31/96 6,772,780 7,248,124
06/30/96 6,987,958 7,573,391
09/30/96 7,225,188 7,807,457
12/31/96 7,546,203 8,458,284
03/31/97 7,327,631 8,685,052
06/30/97 8,496,992 10,201,283
09/30/97 9,322,102 10,965,443
12/31/97 9,456,557 11,280,246
03/31/98 11,129,186 12,853,707
06/30/98 12,051,200 13,278,142
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 1/1/95, the first full month following
the Fund's Institutional Class inception on 12/28/94, compared to the S&P 500
Index, an unmanaged market index. The performance of the Administrative Class
(shown above) reflects the payment of a service fee in an amount not to exceed
0.25% on an annualized basis. The Administrative Class commenced operations on
5/31/95.
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
. For the 12-months ended June 30, 1998, the Core Equity Fund's Institutional
and Administrative Class shares posted outstanding returns of 41.83% and
41.54%, respectively, and outperformed the 30.16% return of the S&P 500
Index by more than 11%. Many sectors posted strong gains, but the
technology, consumer staples and financial sectors provided the largest
returns.
. Technology stocks had the greatest impact on the Fund's performance boosted
by an overweight in this sector. Technology stocks held by the Fund were up
81.77% as a group, versus a 34.33% return for technology stocks in the S&P
500 Index. The most profitable technology holdings were American Online,
Inc. and Lucent Technologies, Inc., returning 277.98% and 131.62%,
respectively.
. Consumer staples stocks also benefited Fund performance. The Fund's
holdings in this sector advanced 51.48% versus 27.44% for the S&P 500
Index, propelled by Telecommunications, Inc. (up 158.40%), Safeway, Inc.
(up 76.42%), Cardinal Health, Inc. (up 63.98%) and CVS Corp. (up 53.06%).
. Performance was also enhanced by holdings in the financial sector, which
returned 48.59% versus 38.97% for such stocks in the S&P 500 Index.
Productive holdings included Capital One Financial Corp. (up 162.33%) and
Morgan Stanley, Dean Witter, Discover and Co. (up 56.85%).
. Basic materials stocks represented the Fund's worst performing sector.
Champion International Corp. and Georgia Pacific Corp. had negative returns
due to the Asian crisis and an oversupply of paper products in the global
market. Recognizing the potential negative effects from Asia, the portfolio
manager kept the sector weighting small and its impact on performance was
minimal.
10 PIMCO Funds
<PAGE>
PIMCO Mid-Cap Equity Fund
- --------------------------------------------------------------------------------
FUND CHARACTERISTICS
- --------------------------------------------------------------------------------
Portfolio Manager:
Columbus Circle Investors
Stamford, Connecticut
Objective and Primary Investments:
Seeks long-term growth of capital; invests primarily in common stocks of
companies with market capitalizations between $800 million and $3 billion.
Total Net Assets:
$11 million
Top Ten Common Stocks:*
Company
- --------------------------------------------------------------------------------
Providian Financial Corp. 3.6%
- --------------------------------------------------------------------------------
Watson Pharmaceuticals, Inc. 3.6%
- --------------------------------------------------------------------------------
Black & Decker Corp. 3.3%
- --------------------------------------------------------------------------------
Ceridian Corp. 3.2%
- --------------------------------------------------------------------------------
Office Depot, Inc. 3.1%
- --------------------------------------------------------------------------------
Jacor Communications, Inc. 2.5%
- --------------------------------------------------------------------------------
Lowe's Cos., Inc. 2.4%
- --------------------------------------------------------------------------------
Intuit, Inc. 2.4%
- --------------------------------------------------------------------------------
Fred Meyer, Inc. 2.3%
- --------------------------------------------------------------------------------
BMC Software, Inc. 2.3%
- --------------------------------------------------------------------------------
Top Ten Total 28.7%
Industry Classifications:*
[PIE CHART APPEARS HERE]
Technology 24.4%
Consumer Discretionary 19.5%
Health Care 11.8%
Financial and Business Services 11.3%
Communications 11.1%
Consumer Services 5.3%
Transportation 2.5%
Miscellaneous 2.1%
Consumer Staples 2.1%
Other 9.9%
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended June 30, 1998
<TABLE>
<CAPTION>
Inst'l Class Admin. Class S&P 500 Lipper Mid-Cap
(Incep. 12/28/94) (Incep. 8/21/97) Mid-Cap Index Fund Average
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 Year 30.40% -- 27.16% 22.22%
3 Years* 22.63% -- 24.00% 20.42%
Since Inception 24.52%* 19.65% -- --
</TABLE>
* Annualized
Cumulative Returns Through June 30, 1998
$5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Mid-Cap S&P 500
MONTH Equity Mid-Cap
Fund Index
========= ========== ==========
<S> <C> <C>
12/31/94 5,000,000 5,000,000
01/31/95 4,910,000 5,052,050
03/31/95 5,370,000 5,409,394
06/30/95 5,850,000 5,881,160
09/30/95 6,375,000 6,455,173
12/31/95 6,585,784 6,547,426
03/31/96 7,002,866 6,950,487
06/30/96 7,548,678 7,150,700
09/30/96 7,574,424 7,358,871
12/31/96 7,725,848 7,804,670
03/31/97 7,266,187 7,688,729
06/30/97 8,273,906 8,818,698
09/30/97 9,700,035 10,236,819
12/31/97 8,978,700 10,321,966
03/31/98 10,055,187 11,458,757
06/30/98 10,788,793 11,213,575
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 1/1/95, the first full month following
the Fund's Institutional Class inception on 12/28/94, compared to the S&P
Mid-Cap Index, an unmanaged market index. The performance of the Administrative
Class (shown above) reflects the payment of a service fee in an amount not to
exceed 0.25% on an annual basis. The Administrative Class commenced operations
on 8/21/97.
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
. The Mid-Cap Equity Fund posted exceptional results for the 12-months ended
June 30, 1998 with the Fund's total return of 30.40% leading the S&P
Mid-Cap Index return of 27.16% by 3.24%. The financial, transportation and
consumer staples sectors provided the largest returns.
. Performance in the financial sector was led by Capital One Financial Corp.
(up 139.60%), Providian Financial Corp. (up 89.56%) and Dime Bancorp, Inc.
(up 72.24%). This sector continued to benefit from low interest rates and a
merger and acquisition trend that was favorably received by Wall Street
analysts and investors.
. The transportation sector was overweighted versus the S&P Mid-Cap Index and
enjoyed good performance due to falling oil prices and the strong US
economy. Fund performance was enhanced by holdings of Kansas City Southern
Industries, Inc. and Southwest Airlines Co. which provided 69.51% and
32.59% returns, respectively.
. The strength of the US economy led to positive growth in the consumer
staples sector. As a group the consumer staples stocks held by the Fund
were up 47.84% versus a 26.71% return for this sector in the S&P Mid-Cap
Index. The Fund held overweighted positions in this sector which further
enhanced performance. The Fund's top performing consumer staples' stocks
for the Fund in this sector were Jacor Communications, Inc. (up 47.96%),
Outback Steakhouse, Inc. (up 40.54%) and Viacom, Inc. (up 35.86%).
. Continued economic problems in Asia had a negative effect on the industrial
cyclicals and basic materials sectors. The Fund maintained a small weighted
position in these sectors and the impact was minimal.
1998 Annual Report 11
<PAGE>
PIMCO Equity Income Fund
- --------------------------------------------------------------------------------
FUND CHARACTERISTICS
- --------------------------------------------------------------------------------
Portfolio Manager:
NFJ Investment Group
Dallas, Texas
Objective and Primary Investments:
Seeks current income as a primary investment objective, and long-term growth of
capital as a secondary objective; invests primarily in common stocks with
below-average price to earnings ratios and higher dividend yields relative to
their industry groups.
Total Net Assets:
$202 million
Top Ten Common Stocks:*
Company
- --------------------------------------------------------------------------------
SUPERVALU, Inc. 4.0%
- --------------------------------------------------------------------------------
PNC Bank Corp. 3.7%
- --------------------------------------------------------------------------------
RJR Nabisco Holdings Corp. 3.6%
- --------------------------------------------------------------------------------
Ford Motor Co. 2.6%
- --------------------------------------------------------------------------------
Atlantic Richfield Co. 2.4%
- --------------------------------------------------------------------------------
Pharmacia & Upjohn, Inc. 2.2%
- --------------------------------------------------------------------------------
American Home Products Corp. 2.2%
- --------------------------------------------------------------------------------
Deluxe Corp. 2.1%
- --------------------------------------------------------------------------------
Union Carbide Corp. 2.1%
- --------------------------------------------------------------------------------
Peoples Energy Corp. 2.1%
- --------------------------------------------------------------------------------
Top Ten Total 27.0%
Industry Classifications:*
[PIE CHART APPEARS HERE]
Financial and Business Services 16.2%
Consumer Discretionary 16.1%
Utilities 11.9%
Energy 11.1%
Materials and Processing 9.5%
Consumer Staples 9.5%
Health Care 6.3%
Communications 5.7%
Other 13.7%
* % of Total Investments as of June 30, 1995
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended June 30, 1998
<TABLE>
<CAPTION>
Inst'l Class Admin. Class Lipper Equity
(Incep. 3/8/91) (Incep. 11/30/94) S&P 500 Index Income Fund Average
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 Year 21.84% 21.58% 30.16% 20.94%
3 Years* 24.77% 24.46% 30.24% 23.14%
5 Years* 18.12% -- 23.08% 17.52%
Since Inception* 17.48% 25.56% -- --
</TABLE>
* Annualized
CUMULATIVE RETURNS THROUGH JUNE 30, 1998
$5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Equity Income S&P 500
MONTH Fund Index
========= ============= ===========
<S> <C> <C>
03/31/91 5,000,000 5,000,000
04/30/91 5,034,636 5,012,000
06/30/91 5,134,629 4,989,052
09/30/91 5,532,987 5,256,026
12/31/91 5,820,738 5,696,591
03/31/92 6,017,412 5,552,878
06/30/92 6,141,420 5,658,669
09/30/92 6,283,491 5,837,050
12/31/92 6,678,968 6,130,939
03/31/93 7,009,814 6,398,680
06/30/93 7,048,480 6,429,835
09/30/93 7,279,450 6,595,972
12/31/93 7,244,360 6,748,903
03/31/94 7,031,262 6,492,973
06/30/94 7,030,089 6,520,301
09/30/94 7,420,033 6,839,131
12/31/94 7,128,119 6,838,055
03/31/95 7,819,936 7,503,845
06/30/95 8,345,382 8,220,215
09/30/95 8,990,321 8,873,410
12/31/95 9,513,516 9,407,652
03/31/96 9,980,549 9,912,614
06/30/96 10,419,988 10,357,452
09/30/96 10,636,733 10,677,563
12/31/96 11,556,478 11,567,641
03/31/97 11,746,786 11,877,772
06/30/97 13,303,510 13,951,386
09/30/97 14,693,065 14,996,459
12/31/97 15,183,146 15,426,988
03/31/98 16,902,461 17,578,870
06/30/98 16,209,160 18,159,332
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 4/1/91, the first full month following
the Fund's Institutional Class inception on 3/8/91, compared to the S&P 500
Index, an unmanaged market index. The performance of the Administrative Class
(shown above) reflects the payment of a service fee in an amount not to exceed
0.25% on an annualized basis. The Administrative Class commenced operations on
11/30/94.
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
. The Equity Income Fund's performance was solid, returning 21.84% and 21.58%
for Institutional and Administrative Class shares, respectively, for the
fiscal year. While these returns trailed the S&P 500 Index, they edged the
20.94% average return of funds with the same objective (as measured by the
Lipper Equity Income Fund Average).
. Fund performance was heightened by holdings of consumer cyclical stocks. A
strong domestic economy, low interest rates and low inflation spurred
consumer spending resulting in banner years for many consumer cyclicals.
One strong performer during the period was Ford Motor Co., whose truck and
sports-utility vehicle sales, have greatly increased. Ford's European
operations and auto parts division also increased earnings. The company
also cut $900 million in costs.
. Chrysler Corp. was also a standout performer for the Fund this year. Like
Ford, Chrysler benefited from the generally strong economy and made deep
cost-cutting efforts. In addition, luxury German automaker Daimler-Benz AG
announced a merger with Chrysler in May, increasing the company's stock
price.
. The Fund saw contributions from American Home Products Corp., a drug and
consumer products company. While the company had some product setbacks
during the year, they also had positive news in the form of an announced
merger with Monsanto Co. which boosted the company's stock price.
. One recent disappointment for the Fund was Capstead Mortgage Corp. Capstead
Mortgage is a Real Estate Investment Trust (REIT) which took a large
write-off in its portfolio during the second quarter of 1998. The company
was forced to cut its dividend which led to a sharp price decline in June.
12 PIMCO Funds
<PAGE>
PIMCO Value Fund
- --------------------------------------------------------------------------------
FUND CHARACTERISTICS
- --------------------------------------------------------------------------------
Portfolio Manager:
NFJ Investment Group
Dallas, Texas
Objective and Primary Investments:
Seeks long-term growth of capital and income; invests primarily in common stocks
with below-average price to earnings ratios relative to their industry groups.
Total Net Assets:
$239 million
Top Ten Common Stocks:*
Company
- ----------------------------------------------------
DTE Energy Co. 3.2%
- ----------------------------------------------------
NICOR, Inc. 3.2%
- ----------------------------------------------------
Public Service Enterprise Group, Inc. 3.2%
- ----------------------------------------------------
Southern New England
Telecommunications Corp. 3.0%
- ----------------------------------------------------
Anheuser Busch Cos., Inc. 3.0%
- ----------------------------------------------------
SUPERVALU, Inc. 3.0%
- ----------------------------------------------------
Harris Corp. 3.0%
- ----------------------------------------------------
Chase Manhattan Corp. 3.0%
- ----------------------------------------------------
Pharmacia & Upjohn, Inc. 2.9%
- ----------------------------------------------------
Repsol SA SP - ADR 2.9%
- ----------------------------------------------------
Top Ten Total 30.4%
Industry Classifications:*
[PIE CHART APPEARS HERE]
Consumer Discretionary 13.5%
Financial and Business Services 13.5%
Consumer Staples 11.7%
Energy 10.0%
Technology 9.6%
Utilities 9.5%
Materials and Processing 8.8%
Health Care 7.5%
Other 15.9%
% of Total Investments as of June 30, 1998
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended June 30, 1998
<TABLE>
<CAPTION>
Lipper
Inst'l Class Admin. Class Growth & Income
(Incep. 12/30/91) (Incep. 8/21/97) S&P 500 Index Fund Average
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 Year 19.35% -- 30.16% 22.86%
3 Years* 24.08% -- 30.24% 24.74%
5 Years* 19.03% -- 23.08% 18.93%
Since Inception 17.83%* 12.71% -- --
</TABLE>
* Annualized
CUMULATIVE RETURNS THROUGH JUNE 30, 1998
$5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Value S&P 500
MONTH Fund Index
--------- ---------- ----------
<S> <C> <C>
12/31/91 5,000,000 5,000,000
01/31/92 5,144,543 4,907,000
03/31/92 5,199,220 4,873,861
06/30/92 5,067,395 4,966,715
09/30/92 5,166,445 5,123,283
12/31/92 5,657,265 5,381,235
03/31/93 6,021,274 5,616,236
06/30/93 6,041,965 5,643,582
09/30/93 6,355,890 5,789,403
12/31/93 6,585,324 5,923,633
03/31/94 6,415,209 5,698,999
06/30/94 6,191,689 5,722,985
09/30/94 6,518,708 6,002,828
12/31/94 6,317,178 6,001,883
03/31/95 6,966,570 6,586,260
06/30/95 7,557,689 7,215,031
09/30/95 8,210,920 7,788,352
12/31/95 8,774,957 8,257,265
03/31/96 9,300,160 8,700,479
06/30/96 9,572,367 9,090,922
09/30/96 9,668,844 9,371,889
12/31/96 10,559,934 10,153,126
03/31/97 10,714,973 10,425,334
06/30/97 12,097,138 12,245,382
09/30/97 13,388,728 13,162,661
12/31/97 13,327,284 13,540,544
03/31/98 14,755,186 15,429,289
06/30/98 14,438,304 15,938,771
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 1/1/92, the first full month following
the Fund's Institutional Class inception on 12/30/91, compared to the S&P 500
Index, an unmanaged market index. The performance of the Administrative Class
(shown above) reflects the payment of a service fee in an amount not to exceed
0.25% on an annual basis. The Administrative Class commenced operations on
8/21/97.
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
. The Value Fund posted solid results for the year ended June 30, 1998, with
Institutional Class shares returning 19.35%. The market's continued focus
on large-cap and growth-oriented holdings made it a difficult year for
value investors. But, relative to its peers, the Fund proved to be an able
performer.
. Much of the Fund's success during this period can be traced to its
financial and consumer cyclical holdings - two sectors that benefited from
the growing domestic economy.
. Within the financial sector, the Fund saw significant contributions from
bank stocks. Chase Manhattan Corp. was one of the Fund's largest holdings
and one of its best performers. The bank reported large trading profits,
growing fee income from securities processing and increases in trust
revenues, mortgage banking and bank card fees.
. In the consumer cyclicals sector, Chrysler Corp. was a standout holding. An
announced merger with German luxury automaker Daimler-Benz AG greatly
improved Chrysler's outlook for global growth. Also, profits from the
company's truck sales soared while management implemented a deep
cost-cutting program.
. The Fund's basic industries holdings did not fare as well. The steel
industry was hit hard by deteriorating fundamentals as a result of rising
supply and softening demand. With predictions of further demand declines,
steel company stock prices began dropping. Fund holding USX-U.S. Steel
Group, Inc. was no exception to this trend, seeing its price decline.
1998 Annual Report 13
<PAGE>
PIMCO Small-Cap Value Fund
- --------------------------------------------------------------------------------
FUND CHARACTERISTICS
- --------------------------------------------------------------------------------
Portfolio Manager:
NFJ Investment Group
Dallas, Texas
Objective and Primary Investments:
Seeks long-term growth of capital and income; invests primarily in common stocks
of companies with market capitalizations between $50 million and $1 billion and
below-average price to earnings ratios relative to their industry groups.
Total Net Assets:
$375 million
Top Ten Common Stocks:*
Company
- ------------------------------------------------------------------------------
Bindley Western Industries, Inc. 1.2%
- ------------------------------------------------------------------------------
Burlington Coat Factory Warehouse Corp. 1.1%
- ------------------------------------------------------------------------------
Brown Group, Inc. 1.1%
- ------------------------------------------------------------------------------
Hughes Supply, Inc. 1.1%
- ------------------------------------------------------------------------------
Roadway Express, Inc. 1.0%
- ------------------------------------------------------------------------------
Kelly Services, Inc. 1.0%
- ------------------------------------------------------------------------------
Claire's Stores, Inc. 1.0%
- ------------------------------------------------------------------------------
Aliant Communications, Inc. 1.0%
- ------------------------------------------------------------------------------
Wausau-Mosinee Paper Corp. 1.0%
- ------------------------------------------------------------------------------
Bergen Brunswig Corp. 'A' 1.0%
- ------------------------------------------------------------------------------
Top Ten Total 10.5%
Industry Classifications:*
[PIE CHART APPEARS HERE]
Financial and Business Services 20.0%
Consumer Discretionary 14.9%
Materials and Processing 11.5%
Capital Goods 10.4%
Utilities 6.8%
Energy 6.7%
Health Care 4.1%
Building 3.9%
Other 21.7%
*% of Total Investments as of June 30, 1998
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended June 30, 1998
Inst'l Class Admin. Class Lipper Small-Cap
(Incep. 10/1/91) (Incep. 11/1/95) Russell 2000 Index Fund Average
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 Year 17.77% 17.41% 16.50% 17.63%
3 Years* 23.77% -- 18.85% 19.68%
5 Years* 17.56% -- 16.05% 16.74%
Since Inception* 17.65% 24.39% -- --
* Annualized
</TABLE>
CUMULATIVE RETURNS THROUGH JUNE 30, 1998
$5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Small-Cap Russell 2000
MONTH Value Fund Index
=================== =========== ============
<S> <C> <C>
09/30/91 5,000,000 5,000,000
10/31/91 5,057,765 5,132,200
12/31/91 5,307,711 5,286,354
03/31/92 5,810,840 5,682,857
06/30/92 5,515,246 5,295,172
09/30/92 5,652,803 5,446,897
12/31/92 6,302,353 6,259,658
03/31/93 6,718,541 6,527,220
06/30/93 6,669,012 6,669,713
09/30/93 6,979,457 7,252,855
12/31/93 7,174,310 7,443,163
03/31/94 7,099,942 7,245,646
06/30/94 6,830,154 6,963,464
09/30/94 7,039,274 7,446,854
12/31/94 6,909,938 7,307,581
03/31/95 7,302,170 7,644,477
06/30/95 7,898,295 8,361,043
09/30/95 8,618,222 9,186,790
12/31/95 8,669,760 9,385,870
03/31/96 9,086,486 9,864,718
06/30/96 9,635,021 10,358,221
09/30/96 9,831,792 10,393,301
12/31/96 11,072,978 10,934,006
03/31/97 11,048,801 10,368,498
06/30/97 12,717,001 12,049,350
09/30/97 14,739,794 13,842,965
12/31/97 14,950,861 13,379,342
03/31/98 16,238,414 14,725,042
06/30/98 14,976,274 14,037,820
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 10/1/91, the Fund's Institutional Class
inception, compared to the Russell 2000 Index, an unmanaged market index. The
performance of the Administrative Class (shown above) reflects the payment of a
service fee in an amount not to exceed 0.25% on an annualized basis. The
Administrative Class commenced operations on 11/1/95. The Fund may invest in
stocks of small and intermediate sized companies which may have less liquidity
than those of larger companies and may be subject to greater price volatility
than the overall stock market.
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
. The Small-Cap Value Fund produced strong results for the one-year
period ended June 30, 1998, with Institutional Class shares returning
17.77% and Administrative Class shares returning 17.41%. This
performance outpaced the 16.50% return of the Fund's benchmark, the
Russell 2000 Index, for the same period.
. Small-capitalization stocks in general did not perform as well as their
large-cap counterparts this year. This can be attributed to a "flight
to quality," where nervous investors abandoned small-cap stocks
(especially value ones), in favor of more stable, liquid, large-cap
holdings. Despite this focus on large-caps, the Fund was able to
identify several areas of profitability.
. The consumer discretionary sector was one of the Fund's largest sectors
during the year and contained several standout holdings, including
Burlington Coat Factory Warehouse Corp. and Brown Group, Inc. Both of
these retail companies benefited from a surge in consumer spending,
brought on by a strong economy and continued consumer confidence.
. Another sector that performed well for the Fund this year was
healthcare, with holdings such as Bergen Brunswig Corp. and Bindley
Western Industries, Inc. Bergen Brunswig saw its stock price rise after
an announcement of an agreement to supply pharmaceutical needs to
Kaiser Permanente, the nation's largest non-profit health plan. The
company also made a number of acquisitions this year, which added to
its diversified product offerings and improved its long-term prospects.
. The Fund found less support from its technology holdings which, in
general, were indirectly hurt by the Asian currency crisis. While the
Fund did not have significant large technology exposure, almost all of
its holdings suffered.
14 PIMCO Funds
<PAGE>
PIMCO Enhanced Equity Fund
- --------------------------------------------------------------------------------
FUND CHARACTERISTICS
- --------------------------------------------------------------------------------
Portfolio Manager:
Parametric Portfolio Associates
Seattle, Washington
Objective and Primary Investments:
Seeks to provide a total return which equals or exceeds the total return
performance of the Standard & Poor's 500 Composite Stock Price Index; invests in
common stocks represented in that Index.
Total Net Assets:
$47 million
Top Ten Common Stocks:*
Company
- --------------------------------------------------------------------------------
Microsoft Corp. 4.2%
- --------------------------------------------------------------------------------
General Electric Co. 2.3%
- --------------------------------------------------------------------------------
Schering-Plough Corp. 2.1%
- --------------------------------------------------------------------------------
BellSouth Corp. 1.9%
- --------------------------------------------------------------------------------
Pfizer, Inc. 1.9%
- --------------------------------------------------------------------------------
Lucent Technologies, Inc. 1.8%
- --------------------------------------------------------------------------------
Dayton Hudson Corp. 1.8%
- --------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 1.8%
- --------------------------------------------------------------------------------
Procter & Gamble Co. 1.7%
- --------------------------------------------------------------------------------
NationsBank Corp. 1.7%
- --------------------------------------------------------------------------------
Top Ten Total 21.2%
Industry Classifications:*
[PIE CHART APPEARS HERE]
Financial and Business Services 19.6%
Consumer Discretionary 13.9%
Technology 13.6%
Health Care 11.1%
Capital Goods 7.4%
Communications 7.3%
Consumer Staples 6.1%
Energy 6.0%
Other 15.0%
*% of Total Investments as of June 30, 1998
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended June 30, 1998
Lipper
Inst'l Class Admin. Class Growth & Income
(Incep. 12/30/91) (Incep. 8/21/97) S&P 500 Index Fund Average
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 Year 32.33% -- 30.16% 22.86%
3 Years* 28.76% -- 30.24% 24.74%
5 Years* 21.02% -- 23.08% 18.93%
Since Inception 17.68%* 23.85% -- --
* Annualized
</TABLE>
Cumulative Returns Through June 30, 1998
$5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Enhanced S&P 500
MONTH Equity Index
Fund
========= ========== ==========
<S> <C> <C>
02/28/91 5,000,000 5,000,000
03/31/91 5,144,566 5,121,000
06/30/91 5,075,075 5,109,787
09/30/91 5,419,564 5,383,222
12/31/91 5,952,777 5,834,448
03/31/92 5,655,707 5,687,258
06/30/92 5,689,062 5,795,608
09/30/92 6,002,622 5,978,306
12/31/92 6,345,501 6,279,308
03/31/93 6,490,130 6,553,528
06/30/93 6,393,262 6,585,437
09/30/93 6,472,088 6,755,595
12/31/93 6,581,173 6,912,226
03/31/94 6,296,768 6,650,103
06/30/94 6,300,283 6,678,092
09/30/94 6,586,276 7,004,638
12/31/94 6,549,132 7,003,536
03/31/95 7,143,473 7,685,438
06/30/95 7,772,994 8,419,145
09/30/95 8,395,839 9,088,147
12/31/95 8,803,247 9,635,317
03/31/96 9,156,282 10,152,499
06/30/96 8,538,857 10,608,103
09/30/96 9,838,632 10,935,960
12/31/96 10,664,922 11,847,578
03/31/97 10,969,634 12,165,215
06/30/97 12,538,901 14,289,010
09/30/97 13,742,514 15,359,373
12/31/97 13,954,567 15,800,321
03/31/98 16,068,100 18,004,278
06/30/98 16,593,201 18,598,787
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 1/1/92, the first full month following
the Fund's Institutional Class inception on 12/30/91, compared to the S&P 500
Index, an unmanaged market index. The performance of the Administrative Class
(shown above) reflects the payment of a service fee in an amount not to exceed
0.25% on an annual basis. The Administrative Class commenced operations on
8/21/97.
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
. The Enhanced Equity Fund delivered above-index results for the 12-month
period ended June 30, 1998, with a return of 32.33% for Institutional Class
shares versus 30.16% for the S&P 500 Index and 22.86% for funds with the
same investment objective (as measured by the Lipper Growth & Income Fund
Average).
. Technology stocks contributed most to the Fund's strong performance. On
average, stocks in this sector were up just over 50%. The rally in
technology was driven by better than anticipated earnings reports and by
market share gains of selected companies including Dell Computer Corp. and
Lucent Technologies, Inc.
. The Fund's financial services holdings also added value during the period.
Banks and securities brokerage firms were the leaders in this group. Low
interest rates, the strong stock market and merger activity boosted
valuations across the sector.
. Other top performing sectors for the Fund were consumer durables and
transportation. Strong auto and truck sales propelled the shares of Ford
Motor Co. and Chrysler Corp. Airline stocks rose due to increased passenger
traffic accompanied by only a limited rise in costs.
. The weakest sectors were energy and consumer non-durables, but they still
posted positive results over the annual period.
. Nearly all of the Fund's excess return over the unmanaged S&P 500 Index
came from stock selection. Economic sector allocations mirror those of the
index and were kept within a narrow range relative to the Index at all
times. Within each sector, stocks with rising earnings expectations
combined with reasonable valuations were selected for purchase.
1998 Annual Report 15
<PAGE>
PIMCO Balanced Fund
- --------------------------------------------------------------------------------
FUND CHARACTERISTICS
- --------------------------------------------------------------------------------
Portfolio Manager:
Cadence Capital Management
Boston, Massachusetts
NFJ Investment Group
Dallas, Texas
Pacific Investment
Management Company
Newport Beach, California
Objective and Primary Investments:
Seeks total return consistent with prudent investment management; invests in
common stocks, fixed income securities and money market instruments.
Total Net Assets:
$68 million
Top Five Holdings:*
Issuer
- --------------------------------------------------------------------------------
Federal Home Loan
Mortgage Corp. - 6.50% 8.0%
- --------------------------------------------------------------------------------
Long Island Lighting Co. - 9.00% 3.0%
- --------------------------------------------------------------------------------
New England Educational
Loan Marketing - 5.86% 2.7%
- --------------------------------------------------------------------------------
Federal Home Loan
Mortgage Corp. - 6.50% 2.7%
- --------------------------------------------------------------------------------
Government National
Mortgage Assn. - 7.38% 1.8%
- --------------------------------------------------------------------------------
Top Five Total 18.2%
Industry Classifications:*
[PIE CHART APPEARS HERE]
Federal Home Loan Mortgage Corporation 11.4%
Short-Term Instruments 11.2%
Financial and Business Services 11.1%
Consumer Discretionary 7.2%
Government National Mortgage Association 5.8%
Utilities 5.7%
Federal National Mortgage Association 5.5%
Technology 5.4%
Other 36.7%
*% of Total Investments as of June 30, 1998
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended June 30, 1998
60% S&P 500 Index
Inst'l Class Lipper and 40% Lehman Lipper Balanced
(Incep. 6/25/92) Balanced Index Aggregate Bond Index Fund Average
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 Year 19.91% 18.23% 22.21% 17.57%
3 Years* 18.44% 17.79% 20.99% 17.77%
5 Years* 14.18% 13.74% 16.46% 13.91%
Since Inception* 14.04% -- -- --
* Annualized
</TABLE>
Cumulative Returns Through June 30, 1998
$5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Balanced Lipper 60% S&P 500 Index
MONTH Fund Balanced and 40% Lehman
Index Aggregate Bond
Index
========= ========== ========== =================
<S> <C> <C> <C>
06/30/92 5,000,000 5,000,000 5,000,000
07/31/92 5,193,158 5,146,799 5,163,355
09/30/92 5,267,844 5,157,571 5,181,243
12/31/92 5,452,066 5,351,289 5,342,793
03/31/93 5,612,702 5,603,117 5,571,400
06/30/93 5,638,230 5,717,697 5,647,716
09/30/93 5,753,729 5,926,998 5,794,635
12/31/93 5,799,077 5,990,869 5,876,495
03/31/94 5,591,788 5,808,122 5,675,961
06/30/94 5,573,389 5,764,008 5,667,552
09/30/94 5,753,625 5,932,697 5,847,688
12/31/94 5,744,038 5,868,285 5,857,227
03/31/95 6,151,815 6,222,455 6,316,730
06/30/95 6,585,673 6,657,903 6,832,050
09/30/95 6,927,463 7,015,299 7,210,625
12/31/95 7,292,520 7,328,598 7,594,747
03/31/96 7,371,821 7,492,602 7,782,486
06/30/96 7,582,005 7,644,512 8,009,534
09/30/96 7,690,524 7,845,097 8,221,345
12/31/96 8,249,779 8,281,695 8,731,919
03/31/97 8,308,693 8,317,404 8,856,329
06/30/97 9,126,126 9,204,453 9,902,088
09/30/97 9,903,777 9,795,653 10,484,813
12/31/97 10,058,979 9,938,310 10,794,124
03/31/98 10,809,467 10,723,589 11,756,120
06/30/98 10,943,031 10,881,989 12,101,263
</TABLE>
Past performance is not an indication of future results. The line graph above
assumes the investment of $5,000,000 on 7/1/92, the first full month following
the Fund's Institutional Class inception on 6/25/92, compared to a static 60/40
blend of the Standard and Poor's 500 Index and the Lehman Brothers Aggregate
Bond Index, and the Lipper Balanced Index, each an unmanaged market index. The
Fund may invest in foreign securities which involve potentially higher risks
including foreign currency fluctuations and political or economic uncertainty.
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
. The Fund turned in solid performance for the year-ended June 30, 1998
with a return of 19.91% for Institutional Class shares. The result
allowed the Fund to surpass the 17.57% average return of funds with the
same objective (as measured by the Lipper Balanced Fund Average).
. The Fund's asset allocation of 60% stocks and 40% bonds was basically
unchanged throughout the year, as the managers believed this split
provided the best exposure mix.
. Among the Fund's best performing stocks was PNC Bank Corp., which
benefited from the strong domestic economy and a shift in its business
mix to broaden its revenue base and improve long-term prospects.
Another standout stock was Chrysler Corp. A combination of an announced
merger with Daimler-Benz AG, soaring sales of its truck and
sports-utility vehicles, and deep cost-cutting has dramatically
improved the value of its stock.
. As for bond holdings, the Fund maintained a high quality portfolio
focused on low-coupon mortgages and Treasuries. The Fund also held an
above-index duration. This strategy was employed to take advantage of
predicted long-term declines in interest rates - a forecast that proved
accurate for the period.
. Hindering Fund performance was stock exposure to the energy sector. A
drop in the price of crude oil hurt revenues, while problems in Asia
reduced demand. As a result, oil companies were hard hit and the Fund's
energy sector holdings suffered.
16 PIMCO Funds
<PAGE>
PIMCO International Growth Fund
- --------------------------------------------------------------------------------
FUND CHARACTERISTICS
- --------------------------------------------------------------------------------
Portfolio Manager:
Columbus Circle Investors
Stamford, Connecticut
Objective and Primary Investments:
Seeks long-term capital appreciation; invests primarily in an international
portfolio of equity and equity-related securities of companies the principal
activities of which are in countries other than the United States.
Total Net Assets:
$7 million
- --------------------------------------------------------------------------------
PORTFOLIO CHARACTERISTICS
- --------------------------------------------------------------------------------
Top Ten Common Stocks:*
Company
- -----------------------------------------
Esat Telecom Group PLC - ADR (b) 3.5%
- -----------------------------------------
Corp. Financiera Reunida SA (b) 3.2%
- -----------------------------------------
Bayerische Hypotheken-
und Wechsel-Bank AG 3.2%
- -----------------------------------------
Bank of Ireland 3.2%
- -----------------------------------------
Colt Telecom Group PLC - ADR (b) 3.0%
- -----------------------------------------
Credito Italiano 2.8%
- -----------------------------------------
Benckiser NV 'B' (b) 2.8%
- -----------------------------------------
Schweizerische Lebensversicherungs-
und Rentenanstalt (b) 2.8%
- -----------------------------------------
Porsche AG 2.7%
- -----------------------------------------
Akzo Noble NV 2.7%
- -----------------------------------------
Top Ten Total 29.9%
Industry Classifications:*
[PIE CHART APPEARS HERE]
United Kingdom 19.3%
Netherlands 16.4%
Germany 12.8%
Italy 7.4%
France 6.9%
Ireland 6.9%
Switzerland 4.8%
Spain 4.2%
Finland 3.7%
Portugal 3.5%
Other 14.1%
*% of Total Investments as of June 30, 1998
The Institutional Class of the International Growth Fund was opened on December
31, 1997. The total return performance of the Institutional Class since
inception was 35.50%. Past performance is not an indication of future results.
The Fund may invest in foreign securities which involve potentially higher risks
including foreign currency fluctuations and political or economic uncertainty.
PIMCO Renaissance Fund
- --------------------------------------------------------------------------------
FUND CHARACTERISTICS
- --------------------------------------------------------------------------------
Portfolio Manager:
Columbus Circle Investors
Stamford, Connecticut
Objective and Primary Investments:
Seeks long-term growth of capital and income; invests primarily in common stocks
with below-average valuations that have improving business fundamentals.
Total Net Assets:
$657 million
- --------------------------------------------------------------------------------
PORTFOLIO CHARACTERISTICS
- --------------------------------------------------------------------------------
Top Ten Common Stocks:*
Company
- --------------------------------------
Sears Roebuck & Co. 4.4%
- --------------------------------------
Tandy Corp. 3.6%
- --------------------------------------
Equitable Cos., Inc. 3.6%
- --------------------------------------
Enron Corp. 3.2%
- --------------------------------------
MediaOne Group, Inc. 3.1%
- --------------------------------------
Lafarge Corp. 3.0%
- --------------------------------------
Hasbro, Inc. 3.0%
- --------------------------------------
Phillip Morris Cos., Inc. 2.9%
- --------------------------------------
Martin Marietta Materials, Inc. 2.8%
- --------------------------------------
Atlantic Richfield Co. 2.7%
- --------------------------------------
Top Ten Total 32.3%
Industry Classifications:*
[PIE CHART APPEARS HERE]
Financial and Business Services 18.0%
Consumer Discretionary 17.1%
Materials and Processing 8.8%
Communications 8.2%
Technology 7.8%
Health Care 7.5%
Energy 5.8%
Capital Goods 5.6%
Other 21.2%
*% of Total Investments as of June 30, 1998
The Institutional Class of the Renaissance Fund was opened on December 30, 1997.
The total return performance of the Institutional Class since inception was
13.99%. Past performance is not an indication of future results.
1998 Annual Report 17
<PAGE>
Financial Highlights - Institutional Classes
<TABLE>
<CAPTION>
Net Asset Net Realized/ Total Dividends
Value Net Unrealized Income from from Net
Beginning Investment Gain (Loss) on Investment Investment
Selected Per Share Data for the Year or Period Ended: of Period Income (Loss) Investments Operations Income
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Emerging Markets Fund
Institutional Class
- -----------------------------------------------------------------------------------------------------------------------------
06/30/98 $ 13.96 $ 0.06(a) $ (3.84)(a) $ (3.78) (0.00)
- -----------------------------------------------------------------------------------------------------------------------------
06/30/97 12.66 0.06(a) 1.30(a) 1.36 (0.06)
- -----------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 11.27 0.03 1.40 1.43 (0.04)
- -----------------------------------------------------------------------------------------------------------------------------
10/31/95 16.53 0.07 (4.55) (4.48) (0.06)
- -----------------------------------------------------------------------------------------------------------------------------
10/31/94 12.27 (0.01) 4.45 4.44 0.00
- -----------------------------------------------------------------------------------------------------------------------------
Administrative Class
06/30/98 13.95 0.09(a) (3.90)(a) (3.81) 0.00
- -----------------------------------------------------------------------------------------------------------------------------
06/30/97 12.63 0.00(a) 1.32(a) 1.32 0.00
- -----------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 11.24 0.02(a) 1.40(a) 1.42 (0.03)
- -----------------------------------------------------------------------------------------------------------------------------
10/31/95 16.95 0.00 (4.95) (4.95) (0.05)
- -----------------------------------------------------------------------------------------------------------------------------
International Developed Fund
Institutional Class
06/30/98 $ 13.12 $ 0.16(a) $ 1.73(a) $ 1.89 $(0.11)
- -----------------------------------------------------------------------------------------------------------------------------
06/30/97 12.54 0.10(a) 1.09(a) 1.19 0.00
- -----------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 11.74 0.72 0.72 1.44 (0.07)
- -----------------------------------------------------------------------------------------------------------------------------
10/31/95 11.86 0.10 0.30 0.40 (0.09)
- -----------------------------------------------------------------------------------------------------------------------------
10/31/94 10.69 0.09 1.15 1.24 (0.03)
- -----------------------------------------------------------------------------------------------------------------------------
Administrative Class
06/30/98 13.05 0.17(a) 1.69(a) 1.86 (0.03)
- -----------------------------------------------------------------------------------------------------------------------------
06/30/97 12.51 0.06(a) 1.09(a) 1.15 0.00
- -----------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 11.73 0.69(a) 0.72(a) 1.41 (0.07)
- -----------------------------------------------------------------------------------------------------------------------------
11/30/94-10/31/95 11.21 0.02 1.01 1.03 (0.08)
- -----------------------------------------------------------------------------------------------------------------------------
Capital Appreciation Fund
Institutional Class
06/30/98 $ 21.19 $ 0.15(a) $ 6.59(a) $ 6.74 $(0.12)
- -----------------------------------------------------------------------------------------------------------------------------
06/30/97 18.10 0.24 5.08 5.32 (0.10)
- -----------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 16.94 0.35 1.99 2.34 (0.15)
- -----------------------------------------------------------------------------------------------------------------------------
10/31/95 13.34 0.18 3.60 3.78 (0.18)
- -----------------------------------------------------------------------------------------------------------------------------
10/31/94 13.50 0.14 (0.12) 0.02 (0.14)
- -----------------------------------------------------------------------------------------------------------------------------
Administrative Class
06/30/98 21.16 0.10(a) 6.55(a) 6.65 (0.14)
- -----------------------------------------------------------------------------------------------------------------------------
07/31/96-06/30/97 17.19 0.16 6.03 6.19 (0.09)
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Annualized
(a) Per share amounts based on average number of shares outstanding during the
period.
18 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Dividends in Distributions Distributions
Excess of Net from Net in Excess of Tax Basis Net Asset
Investment Realized Net Realized Return of Total Value End
Income Capital Gains Capital Gains Capital Distributions of Period
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Emerging Markets Fund
Institutional Class
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/98 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 10.18
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 0.00 0.00 0.00 0.00 (0.06) 13.96
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 0.00 0.00 0.00 0.00 (0.04) 12.66
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/95 0.00 (0.72) 0.00 0.00 (0.78) 11.27
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/94 0.00 (0.18) 0.00 0.00 (0.18) 16.53
- ------------------------------------------------------------------------------------------------------------------------------------
Administrative Class
06/30/98 0.00 0.00 0.00 0.00 0.00 10.14
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 0.00 0.00 0.00 0.00 0.00 13.95
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 0.00 0.00 0.00 0.00 (0.03) 12.63
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/95 0.00 (0.71) 0.00 0.00 (0.76) 11.24
- ------------------------------------------------------------------------------------------------------------------------------------
International Developed Fund
Institutional Class
06/30/98 $ 0.00 $ (0.58) $ 0.00 $ 0.00 $ (0.69) $ 14.32
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 0.00 (0.61) 0.00 0.00 (0.61) 13.12
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 (0.36) (0.21) 0.00 0.00 (0.64) 12.54
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/95 0.00 (0.43) 0.00 0.00 (0.52) 11.74
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/94 0.00 (0.04) 0.00 0.00 (0.07) 11.86
- ------------------------------------------------------------------------------------------------------------------------------------
Administrative Class
06/30/98 0.00 (0.58) 0.00 0.00 (0.61) 14.30
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 0.00 (0.61) 0.00 0.00 (0.61) 13.05
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 (0.35) (0.21) 0.00 0.00 (0.63) 12.51
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/94-10/31/95 0.00 (0.43) 0.00 0.00 (0.51) 11.73
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Appreciation Fund
Institutional Class
06/30/98 $ 0.00 $ (1.68) $ 0.00 $ 0.00 $ (1.80) $ 26.13
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 0.00 (2.13) 0.00 0.00 (2.23) 21.19
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 0.00 (1.03) 0.00 0.00 (1.18) 18.10
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/95 0.00 0.00 0.00 0.00 (0.18) 16.94
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/94 0.00 (0.04) 0.00 0.00 (0.18) 13.34
- ------------------------------------------------------------------------------------------------------------------------------------
Administrative Class
06/30/98 0.00 (1.68) 0.00 0.00 (1.82) 25.99
- ------------------------------------------------------------------------------------------------------------------------------------
07/31/96-06/30/97 0.00 (2.13) 0.00 0.00 (2.22) 21.16
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratio of Net
Ratio of Investment
Net Assets Expenses to Income (Loss)
End of Average Net to Average Portfolio
Total Return Period(000s) Assets Net Assets Turnover Rate
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Emerging Markets Fund
Institutional Class
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/98 (27.08)% $ 24,251 1.39% 0.52% 52%
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 10.85 52,703 1.45 0.45 74
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 12.70 80,545 1.35* 0.84* 74
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/95 (27.70) 73,539 1.35 0.57 118
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/94 36.31 79,620 1.35 (0.06) 79
- ------------------------------------------------------------------------------------------------------------------------------------
Administrative Class
06/30/98 (27.31) 1,339 1.65 0.81 52
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 10.45 117 1.69 0.02 74
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 12.70 368 1.61* 0.18* 74
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/95 (27.96) 830 1.62 0.02 118
- ------------------------------------------------------------------------------------------------------------------------------------
International Developed Fund
Institutional Class
06/30/98 15.69% $ 122,126 1.11% 1.20% 60%
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 10.07 94,044 1.13 0.85 77
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 12.54 70,207 1.10* 0.81* 60
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/95 3.83 63,607 1.10 1.10 63
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/94 11.68 22,569 1.10 1.12 89
- ------------------------------------------------------------------------------------------------------------------------------------
Administrative Class
06/30/98 15.33 6,299 1.36 1.31 60
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 9.77 2,302 1.38 0.52 77
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 12.33 5,624 1.35* 1.04* 60
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/94-10/31/95 9.61 675 1.34* 0.50* 58
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Appreciation Fund
Institutional Class
06/30/98 32.97% $ 805,856 0.71% 0.64% 75%
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 31.52 536,187 0.71 1.02 87
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 14.65 348,728 0.70* 1.33* 73
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/95 28.47 236,220 0.70 1.22 83
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/94 0.15 165,441 0.70 1.17 77
- ------------------------------------------------------------------------------------------------------------------------------------
Administrative Class
06/30/98 32.55 132,384 0.96 0.39 75
- ------------------------------------------------------------------------------------------------------------------------------------
07/31/96-06/30/97 38.26 3,115 0.96* 0.66* 87
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
1998 Annual Report See accompanying notes 19
<PAGE>
Financial Highlights - Institutional Classes (Cont.)
<TABLE>
<CAPTION>
Net Asset Net Realized/ Total Dividends
Value Net Unrealized Income from from Net
Beginning Investment Gain (Loss) on Investment Investment
Selected Per Share Data for the Year or Period Ended: of Period Income (Loss) Investments Operations Income
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Mid-Cap Growth Fund
Institutional Class
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/98 $ 20.28 $ 0.11(a) $ 5.11(a) $ 5.22 $ (0.07)
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 19.44 (0.07) 5.25 5.18 (0.05)
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 18.16 0.32 1.53 1.85 (0.14)
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/95 13.97 0.07 4.19 4.26 (0.07)
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/94 13.97 0.06 0.01 0.07 (0.06)
- ------------------------------------------------------------------------------------------------------------------------------------
Administrative Class
06/30/98 20.24 0.05(a) 5.08(a) 5.13 (0.07)
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 19.44 (0.13) 5.25 5.12 (0.03)
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 18.17 0.28 1.53 1.81 (0.11)
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/94-10/31/95 13.31 0.03 4.85 4.88 (0.02)
- ------------------------------------------------------------------------------------------------------------------------------------
Micro-Cap Growth Fund
Institutional Class
06/30/98 $ 19.85 $ (0.11)(a) $ 6.54(a) $ 6.43 $ 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 18.47 0.00 3.41 3.41 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 15.38 0.00 3.43 3.43 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/95 11.87 (0.04) 3.55 3.51 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/94 11.06 (0.03) 0.84 0.81 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Administrative Class
06/30/98 19.78 (0.17)(a) 6.53(a) 6.36 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 18.46 (0.06) 3.41 3.35 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
04/01/96-06/30/96 16.73 0.03 1.70 1.73 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Small-Cap Growth Fund
Institutional Class
06/30/98 $ 13.40 $ (0.03)(a) $ 2.52(a) $ 2.49 $ 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 20.83 (0.01)(a) 3.17(a) 3.16 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 21.02 2.02 (0.61) 1.41 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/95 19.38 (0.05) 3.12 3.07 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/94 19.15 (0.02) 0.89 0.87 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Administrative Class
06/30/98 13.41 (0.07)(a) 2.51(a) 2.44 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 20.82 (0.06)(a) 3.24(a) 3.18 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 21.01 2.02(a) (0.61)(a) 1.41 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
09/27/95-10/31/95 21.90 (0.02) (0.87) (0.89) 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
International Growth Fund
Institutional Class
- ------------------------------------------------------------------------------------------------------------------------------------
12/31/97-06/30/98 $ 10.00 $ 0.00(a) $ 3.55(a) $ 3.55 $ 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Renaissance Fund
Institutional Class
12/30/97-06/30/98 $ 16.73 $ 0.05 $ 2.29 $ 2.34 $ 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Annualized
(a) Per share amounts based on average number of shares outstanding during the
period.
20 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Dividends
in Excess Distributions Distributions
of Net from Net in Excess of Tax Basis Net Asset
Investment Realized Net Realized Return of Total Value End
Selected Per Share Data for the Year or Period Ended: Income Capital Gains Capital Gains Capital Distributions of Period
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Mid-Cap Growth Fund
Institutional Class
06/30/98 $ (0.01) $ (1.33) $ 0.00 $ 0.00 $ (1.41) $ 24.09
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 0.00 (4.29) 0.00 0.00 (4.34) 20.28
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 0.00 (0.43) 0.00 0.00 (0.57) 19.44
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/95 0.00 0.00 0.00 0.00 (0.07) 18.16
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/94 0.00 (0.01) 0.00 0.00 (0.07) 13.97
- ------------------------------------------------------------------------------------------------------------------------------------
Administrative Class
06/30/98 0.01 (1.33) 0.00 0.00 (1.41) 23.96
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 0.00 (4.29) 0.00 0.00 (4.32) 20.24
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 0.00 (0.43) 0.00 0.00 (0.54) 19.44
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/94-10/31/95 0.00 0.00 0.00 0.00 (0.02) 18.17
- ------------------------------------------------------------------------------------------------------------------------------------
Micro-Cap Growth Fund
Institutional Class
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/98 $ 0.00 $ (2.62) $ 0.00 $ 0.00 $ (2.62) $ 23.66
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 0.00 (2.03) 0.00 0.00 (2.03) 19.85
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 0.00 (0.34) 0.00 0.00 (0.34) 18.47
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/95 0.00 0.00 0.00 0.00 0.00 15.38
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/94 0.00 0.00 0.00 0.00 0.00 11.87
- ------------------------------------------------------------------------------------------------------------------------------------
Administrative Class
06/30/98 0.00 (2.62) 0.00 0.00 (2.62) 23.52
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 0.00 (2.03) 0.00 0.00 (2.03) 19.78
- ------------------------------------------------------------------------------------------------------------------------------------
04/01/96-06/30/96 0.00 0.00 0.00 0.00 0.00 18.46
- ------------------------------------------------------------------------------------------------------------------------------------
Small-Cap Growth Fund
Institutional Class
06/30/98 $ 0.00 $ (1.88) $ 0.00 $ 0.00 $ (1.88) $ 14.01
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 0.00 (10.59) 0.00 0.00 (10.59) 13.40
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 0.00 (1.60) 0.00 0.00 (1.60) 20.83
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/95 0.00 (1.43) 0.00 0.00 (1.43) 21.02
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/94 0.00 (0.64) 0.00 0.00 (0.64) 19.38
- ------------------------------------------------------------------------------------------------------------------------------------
Administrative Class
06/30/98 0.00 (1.88) 0.00 0.00 (1.88) 13.97
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 0.00 (10.59) 0.00 0.00 (10.59) 13.41
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 0.00 (1.60) 0.00 0.00 (1.60) 20.82
- ------------------------------------------------------------------------------------------------------------------------------------
09/27/95-10/31/95 0.00 0.00 0.00 0.00 0.00 21.01
- ------------------------------------------------------------------------------------------------------------------------------------
International Growth Fund
Institutional Class
12/31/97-06/30/98 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 13.55
- ------------------------------------------------------------------------------------------------------------------------------------
Renaissance Fund
Institutional Class
12/30/97-06/30/98 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 19.07
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratio of Net
Ratio of Investment
Net Assets Expenses to Income (Loss)
End of Average Net to Average Portfolio
Selected Per Share Data for the Year or Period Ended: Total Return Period (000s) Assets Net Assets Turnover Rate
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Mid-Cap Growth Fund
Institutional Class
06/30/98 26.16% $ 437,985 0.71% 0.46% 66%
- -----------------------------------------------------------------------------------------------------------------------------
06/30/97 30.58 291,374 0.71 0.53 82
- -----------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 10.37 231,011 0.70* 1.11* 79
- -----------------------------------------------------------------------------------------------------------------------------
10/31/95 30.54 189,320 0.70 0.43 78
- -----------------------------------------------------------------------------------------------------------------------------
10/31/94 0.58 121,791 0.70 0.45 61
- -----------------------------------------------------------------------------------------------------------------------------
Administrative Class
06/30/98 25.75 73,614 0.95 0.22 66
- -----------------------------------------------------------------------------------------------------------------------------
06/30/97 30.23 2,066 0.96 0.28 82
- -----------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 10.17 1,071 0.95* 0.89* 79
- -----------------------------------------------------------------------------------------------------------------------------
11/30/94-10/31/95 36.64 892 0.94* 0.23* 72
- -----------------------------------------------------------------------------------------------------------------------------
Micro-Cap Growth Fund
Institutional Class
06/30/98 33.95% $ 257,842 1.51% (0.50)% 72%
- -----------------------------------------------------------------------------------------------------------------------------
06/30/97 20.05 164,139 1.52 (0.49) 84
- -----------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 22.64 83,973 1.50* (0.45)* 54
- -----------------------------------------------------------------------------------------------------------------------------
10/31/95 29.54 69,775 1.50 (0.37) 87
- -----------------------------------------------------------------------------------------------------------------------------
10/31/94 7.31 32,605 1.50 (0.25) 59
- ------------------------------------------------------------------------------------------------------------------------------------
Administrative Class
06/30/98 33.70 4,779 1.76 (0.74) 72
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 19.72 2,116 1.77 (0.74) 84
- ------------------------------------------------------------------------------------------------------------------------------------
04/01/96-06/30/96 10.34 566 1.73* (0.74)* 54
- ------------------------------------------------------------------------------------------------------------------------------------
Small-Cap Growth Fund
Institutional Class
06/30/98 19.33% $ 47,641 1.26% (0.20)% 77%
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 22.82 33,390 1.32 (0.05) 129
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 7.22 32,954 1.25* (0.20)* 59
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/95 17.39 73,977 1.25 (0.27) 86
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/94 4.62 50,425 1.25 (0.33) 66
- ------------------------------------------------------------------------------------------------------------------------------------
Administrative Class
06/30/98 18.90 981 1.49 (0.51) 77
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 23.12 1 1.54 (0.36) 129
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 7.18 112 1.50* (0.41)* 59
- ------------------------------------------------------------------------------------------------------------------------------------
09/27/95-10/31/95 (5.34) 544 1.60* (0.82)* 9
- ------------------------------------------------------------------------------------------------------------------------------------
International Growth Fund
Institutional Class
12/31/97-06/30/98 35.50% $ 6,822 1.36%* 0.08%* 60%
- ------------------------------------------------------------------------------------------------------------------------------------
Renaissance Fund
Institutional Class
12/30/97-06/30/98 13.99% $ 851 0.86%* 0.55%* 192%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Annualized
(a) Per share amounts based on average number of shares outstanding during the
period.
1998 Annual Report See accompanying notes 21
<PAGE>
Financial Highlights - Institutional Classes (Cont.)
<TABLE>
<CAPTION>
Net Asset Net Realized/ Total Dividends
Value Net Unrealized Income from from Net
Beginning Investment Gain (Loss) on Investment Investment
Selected Per Share Data for the Year or Period Ended: of Period Income (Loss) Investments Operations Income
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Core Equity Fund
Institutional Class
06/30/98 $ 15.55 $ 0.03 (a) $ 6.11 (a) $ 6.14 $ 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 13.55 0.03 (a) 2.78 (a) 2.81 (0.02)
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 12.72 0.51 0.65 1.16 (0.04)
- ------------------------------------------------------------------------------------------------------------------------------------
12/28/94-10/31/95 10.00 0.07 2.71 2.78 (0.06)
- ------------------------------------------------------------------------------------------------------------------------------------
Administrative Class
06/30/98 15.53 (0.01)(a) 6.10 (a) 6.09 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 13.56 0.00 (a) 2.77 (a) 2.77 (0.01)
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 12.73 0.49 0.65 1.14 (0.02)
- ------------------------------------------------------------------------------------------------------------------------------------
05/31/95-10/31/95 11.45 0.02 1.28 1.30 (0.02)
- ------------------------------------------------------------------------------------------------------------------------------------
Mid-Cap Equity Fund
Institutional Class
06/30/98 $ 14.04 $ (0.03) (a) $ 3.61 (a) $ 3.58 $ 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 14.66 (0.06) (a) 1.31 (a) 1.25 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 12.92 0.49 1.62 2.11 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
12/28/94-10/31/95 10.00 0.02 2.92 2.94 (0.02)
- ------------------------------------------------------------------------------------------------------------------------------------
Administrative Class
08/21/97-06/30/98 15.27 (0.05) (a) 2.37 (a) 2.32 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Income Fund
Institutional Class
06/30/98 $ 15.41 $ 0.44 (a) $ 2.75 (a) $ 3.19 $ (0.42)
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 14.36 0.40 3.17 3.57 (0.55)
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 13.09 0.78 1.31 2.09 (0.34)
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/95 11.75 0.46 1.67 2.13 (0.46)
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/94 11.95 0.42 (0.16) 0.26 (0.42)
- ------------------------------------------------------------------------------------------------------------------------------------
Administrative Class
06/30/98 15.40 0.40 (a) 2.75 (a) 3.15 (0.38)
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 14.35 0.27 3.26 3.53 (0.51)
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 13.13 0.75 1.31 2.06 (0.36)
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/94-10/31/95 11.12 0.39 2.35 2.74 (0.40)
- ------------------------------------------------------------------------------------------------------------------------------------
Value Fund
Institutional Class
06/30/98 $ 14.81 $ 0.25 (a) $ 2.47 (a) $ 2.72 $ (0.24)
- ------------------------------------------------------------------------------------------------------------------------------------
06/30/97 12.46 1.05 2.11 3.16 (0.31)
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 12.53 0.25 1.62 1.87 (0.17)
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/95 11.55 0.30 2.18 2.48 (0.30)
- ------------------------------------------------------------------------------------------------------------------------------------
10/31/94 11.92 0.30 (0.28) 0.02 (0.29)
- ------------------------------------------------------------------------------------------------------------------------------------
Administrative Class
08/21/97-06/30/98 15.66 0.19 (a) 1.65 (a) 1.84 (0.22)
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Annualized
(a) Per share amounts based on average number of shares outstanding during the
period.
22 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Dividends in Distributions Distributions
Excess of Net from Net in Excess of Tax Basis
Investment Realized Net Realized Return of Total
Selected Per Share Data for the Year or Period Ended: Income Capital Gains Capital Gains Capital Distributions
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Core Equity Fund
Institutional Class
06/30/98 $ 0.00 $ (1.30) $ 0.00 $ 0.00 $ (1.30)
- -------------------------------------------------------------------------------------------------------------------------------
06/30/97 0.00 (0.79) 0.00 0.00 (0.81)
- -------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 (0.01) (0.28) 0.00 0.00 (0.33)
- -------------------------------------------------------------------------------------------------------------------------------
12/28/94-10/31/95 0.00 0.00 0.00 0.00 (0.06)
- -------------------------------------------------------------------------------------------------------------------------------
Administrative Class
06/30/98 0.00 (1.30) 0.00 0.00 (1.30)
- -------------------------------------------------------------------------------------------------------------------------------
06/30/97 0.00 (0.79) 0.00 0.00 (0.80)
- -------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 (0.01) (0.28) 0.00 0.00 (0.31)
- -------------------------------------------------------------------------------------------------------------------------------
05/31/95-10/31/95 0.00 0.00 0.00 0.00 (0.02)
- -------------------------------------------------------------------------------------------------------------------------------
Mid-Cap Equity Fund
Institutional Class
06/30/98 $ 0.00 $ (4.09) $ 0.00 $ 0.00 $ (4.09)
- -------------------------------------------------------------------------------------------------------------------------------
06/30/97 0.00 (1.87) 0.00 0.00 (1.87)
- -------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 0.00 (0.37) 0.00 0.00 (0.37)
- -------------------------------------------------------------------------------------------------------------------------------
12/28/94-10/31/95 0.00 0.00 0.00 0.00 (0.02)
- -------------------------------------------------------------------------------------------------------------------------------
Administrative Class
08/21/97-06/30/98 0.00 (4.09) 0.00 0.00 (4.09)
- -------------------------------------------------------------------------------------------------------------------------------
Equity Income Fund
Institutional Class
06/30/98 $ 0.00 $ (2.09) $ 0.00 $ 0.00 $ (2.51)
- -------------------------------------------------------------------------------------------------------------------------------
06/30/97 0.00 (1.97) 0.00 0.00 (2.52)
- -------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 0.00 (0.48) 0.00 0.00 (0.82)
- -------------------------------------------------------------------------------------------------------------------------------
10/31/95 0.00 (0.33) 0.00 0.00 (0.79)
- -------------------------------------------------------------------------------------------------------------------------------
10/31/94 0.00 (0.04) 0.00 0.00 (0.46)
- -------------------------------------------------------------------------------------------------------------------------------
Administrative Class
06/30/98 0.00 (2.09) 0.00 0.00 (2.47)
- -------------------------------------------------------------------------------------------------------------------------------
06/30/97 0.00 (1.97) 0.00 0.00 (2.48)
- -------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 0.00 (0.48) 0.00 0.00 (0.84)
- -------------------------------------------------------------------------------------------------------------------------------
11/30/94-10/31/95 0.00 (0.33) 0.00 0.00 (0.73)
- -------------------------------------------------------------------------------------------------------------------------------
Value Fund
Institutional Class
06/30/98 $ 0.00 $ (1.63) $ 0.00 $ 0.00 $ (1.87)
- -------------------------------------------------------------------------------------------------------------------------------
06/30/97 0.00 (0.50) 0.00 0.00 (0.81)
- -------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 0.00 (1.77) 0.00 0.00 (1.94)
- -------------------------------------------------------------------------------------------------------------------------------
10/31/95 0.00 (1.20) 0.00 0.00 (1.50)
- -------------------------------------------------------------------------------------------------------------------------------
10/31/94 0.00 (0.10) 0.00 0.00 (0.39)
- -------------------------------------------------------------------------------------------------------------------------------
Administrative Class
08/21/97-06/30/98 0.00 (1.63) 0.00 0.00 (1.85)
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratio of Net
Ratio of Investment
Net Asset Net Assets Expenses to Income (Loss)
Value End End of Average Net to Averarge
Selected Per Share Data for the Year or Period Ended: of Period Total Return Period(000s) Assets Net Assets
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Core Equity Fund
Institutional Class
06/30/98 $ 20.39 41.83% $ 1,915 0.83% 0.20%
- -------------------------------------------------------------------------------------------------------------------------------
06/30/97 15.55 21.59 6,444 0.87 0.23
- -------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 13.55 9.41 10,452 0.82* 0.53*
- -------------------------------------------------------------------------------------------------------------------------------
12/28/94-10/31/95 12.72 27.86 7,791 0.82* 0.79*
- -------------------------------------------------------------------------------------------------------------------------------
Administrative Class
06/30/98 20.32 41.54 128,666 1.08 (0.07)
- ------------------------------------------------------------------------------------------------------------------------------
06/30/97 15.53 21.20 29,332 1.13 (0.03)
- -------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 13.56 9.23 33,575 1.07* 0.28*
- -------------------------------------------------------------------------------------------------------------------------------
05/31/95-10/31/95 12.73 11.34 24,645 1.06* 0.34*
- -------------------------------------------------------------------------------------------------------------------------------
Mid-Cap Equity Fund
Institutional Class
06/30/98 $ 13.53 30.40% $ 8,488 0.89% (0.25)%
- -------------------------------------------------------------------------------------------------------------------------------
06/30/97 14.04 9.61 7,591 1.15 (0.43)
- -------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 14.66 16.72 8,378 0.88* (0.32)*
- -------------------------------------------------------------------------------------------------------------------------------
12/28/94-10/31/95 12.92 29.34 8,357 0.88* 0.24*
- -------------------------------------------------------------------------------------------------------------------------------
Administrative Class
08/21/97-06/30/98 13.50 19.65 2,371 1.13* (0.49)*
- -------------------------------------------------------------------------------------------------------------------------------
Equity Income Fund
Institutional Class
06/30/98 $ 16.09 21.84% $138,650 0.71% 2.71%
- -------------------------------------------------------------------------------------------------------------------------------
06/30/97 15.41 27.67 121,138 0.72 3.03
- -------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 14.36 16.35 116,714 0.70* 3.41*
- -------------------------------------------------------------------------------------------------------------------------------
10/31/95 13.09 19.36 118,015 0.70 3.83
- -------------------------------------------------------------------------------------------------------------------------------
10/31/94 11.75 2.25 92,365 0.70 3.77
- -------------------------------------------------------------------------------------------------------------------------------
Administrative Class
06/30/98 16.08 21.58 11,699 0.96 2.45
- -------------------------------------------------------------------------------------------------------------------------------
06/30/97 15.40 27.40 8,145 0.97 2.79
- -------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 14.35 16.08 6,097 0.95* 3.19*
- -------------------------------------------------------------------------------------------------------------------------------
11/30/94-10/31/95 13.13 25.69 140 0.95* 3.43*
- -------------------------------------------------------------------------------------------------------------------------------
Value Fund
Institutional Class
06/30/98 $ 15.66 19.35% $ 83,219 0.71% 1.59%
- -------------------------------------------------------------------------------------------------------------------------------
06/30/97 14.81 26.38 74,613 0.73 2.02
- -------------------------------------------------------------------------------------------------------------------------------
11/01/95-06/30/96 12.46 16.24 52,727 0.70* 2.40*
- -------------------------------------------------------------------------------------------------------------------------------
10/31/95 12.53 24.98 14,443 0.70 2.50
- -------------------------------------------------------------------------------------------------------------------------------
10/31/94 11.55 0.15 15,442 0.70 2.34
- -------------------------------------------------------------------------------------------------------------------------------
Administrative Class
08/21/97-06/30/98 15.65 12.71 10,349 0.96* 1.40*
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio
Selected Per Share Data for the Year or Period Ended: Turnover Rate
- ------------------------------------------------------------------------
<S> <C>
Core Equity Fund
Institutional Class
06/30/98 120%
- ------------------------------------------------------------------------
06/30/97 139
- ------------------------------------------------------------------------
11/01/95-06/30/96 73
- ------------------------------------------------------------------------
12/28/94-10/31/95 123
- ------------------------------------------------------------------------
Administrative Class
06/30/98 120
- ------------------------------------------------------------------------
06/30/97 139
- ------------------------------------------------------------------------
11/01/95-06/30/96 73
- ------------------------------------------------------------------------
05/31/95-10/31/95 58
- ------------------------------------------------------------------------
Mid-Cap Equity Fund
Institutional Class
06/30/98 268%
- ------------------------------------------------------------------------
06/30/97 202
- ------------------------------------------------------------------------
11/01/95-06/30/96 97
- ------------------------------------------------------------------------
12/28/94-10/31/95 132
- ------------------------------------------------------------------------
Administrative Class
08/21/97-06/30/98 268
- ------------------------------------------------------------------------
Equity Income Fund
Institutional Class
06/30/98 45%
- ------------------------------------------------------------------------
06/30/97 45
- ------------------------------------------------------------------------
11/01/95-06/30/96 52
- ------------------------------------------------------------------------
10/31/95 46
- ------------------------------------------------------------------------
10/31/94 36
- ------------------------------------------------------------------------
Administrative Class
06/30/98 45
- ------------------------------------------------------------------------
06/30/97 45
- ------------------------------------------------------------------------
11/01/95-06/30/96 52
- ------------------------------------------------------------------------
11/30/94-10/31/95 43
- ------------------------------------------------------------------------
Value Fund
Institutional Class
06/30/98 77%
- ------------------------------------------------------------------------
06/30/97 71
- ------------------------------------------------------------------------
11/01/95-06/30/96 29
- ------------------------------------------------------------------------
10/31/95 71
- ------------------------------------------------------------------------
10/31/94 44
- ------------------------------------------------------------------------
Administrative Class
08/21/97-06/30/98 77
- ------------------------------------------------------------------------
</TABLE>
*Annualized
(a) Per share amounts based on average number of shares outstanding during the
period.
1998 Annual Report See accompanying notes 23
<PAGE>
Financial Highlights - Institutional Classes (Cont.)
<TABLE>
<CAPTION>
Net Asset Net Realized/ Total Dividends
Value Net Unrealized Income from from Net
Beginning Investment Gain (Loss) on Investment Investment
Selected Per Share Data for the Year or Period Ended: of Period Income (Loss) Investments Operations Income
---------- ------------ -------------- ------------- ----------
<S> <C> <C> <C> <C> <C>
Small-Cap Value Fund
Institutional Class
06/30/98 $ 15.78 $ 0.29 (a) $ 2.50 (a) $ 2.79 $ (0.13)
- --------------------------------------------------------------- ---------- ------------ -------------- ------------- ----------
06/30/97 14.20 0.46 3.63 4.09 (0.13)
- --------------------------------------------------------------- ---------- ------------ -------------- ------------- ----------
11/01/95-06/30/96 13.10 0.56 1.49 2.05 (0.21)
- --------------------------------------------------------------- ---------- ------------ -------------- ------------- ----------
10/31/95 12.07 0.28 1.92 2.20 (0.28)
- --------------------------------------------------------------- ---------- ------------ -------------- ------------- ----------
10/31/94 12.81 0.29 (0.65) (0.36) (0.29)
- --------------------------------------------------------------- ---------- ------------ -------------- ------------- ----------
Administrative Class
06/30/98 15.76 0.25 (a) 2.49 (a) 2.74 (0.11)
- --------------------------------------------------------------- ---------- ------------ -------------- ------------- ----------
06/30/97 14.20 0.38 3.68 4.06 (0.12)
- --------------------------------------------------------------- ---------- ------------ -------------- ------------- ----------
11/01/95-06/30/96 13.16 0.54 1.43 1.97 (0.19)
- --------------------------------------------------------------- ---------- ------------ -------------- ------------- ----------
Enhanced Equity Fund
Institutional Class
06/30/98 $ 16.46 $ 0.11 (a) $ 3.91 (a) $ 4.02 $ (0.11)
- --------------------------------------------------------------- ---------- ------------ -------------- ------------- ----------
06/30/97 15.91 1.18 3.10 4.28 (0.10)
- --------------------------------------------------------------- ---------- ------------ -------------- ------------- ----------
11/01/95-06/30/96 14.44 0.34 1.67 2.01 (0.16)
- --------------------------------------------------------------- ---------- ------------ -------------- ------------- ----------
10/31/95 11.99 0.25 2.62 2.87 (0.25)
- --------------------------------------------------------------- ---------- ------------ -------------- ------------- ----------
10/31/94 12.08 0.25 (0.04) 0.21 (0.25)
- --------------------------------------------------------------- ---------- ------------ -------------- ------------- ----------
Administrative Class
08/21/97-06/30/98 17.53 0.05 (a) 2.85 (a) 2.90 (0.11)
- --------------------------------------------------------------- ---------- ------------ -------------- ------------- ----------
Balanced Fund
Institutional Class
06/30/98 $ 11.42 $ 0.35 (a) $ 1.81 (a) $ 2.16 (0.34)
- --------------------------------------------------------------- ---------- ------------ -------------- ------------- ----------
06/30/97 11.64 0.89 1.21 2.10 (0.36)
- --------------------------------------------------------------- ---------- ------------ -------------- ------------- ----------
11/01/95-06/30/96 11.89 0.27 0.76 1.03 (0.27)
- --------------------------------------------------------------- ---------- ------------ -------------- ------------- ----------
10/31/95 10.35 0.44 1.54 1.98 (0.44)
- --------------------------------------------------------------- ---------- ------------ -------------- ------------- ----------
10/31/94 10.84 0.34 (0.34) 0.00 (0.34)
- --------------------------------------------------------------- ---------- ------------ -------------- ------------- ----------
</TABLE>
*Annualized
(a) Per share amounts based on average number of shares outstanding during the
period.
24 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Dividends in Distributions Distributions
Excess of Net from Net in Excess of Tax Basis
Investment Realized Net Realized Return of Total
Selected Per Share Data for the Year or Period Ended: Income Capital Gains Capital Gains Capital Distributions
------------- ------------- ------------- --------- -------------
<S> <C> <C> <C> <C> <C>
Small-Cap Value Fund
Institutional Class
06/30/98 $ 0.00 $ (0.76) $ 0.00 $ 0.00 $ (0.89)
- --------------------------------------------------------- ------------- ------------- ------------- --------- -------------
06/30/97 0.00 (2.38) 0.00 0.00 (2.51)
- --------------------------------------------------------- ------------- ------------- ------------- --------- -------------
11/01/95-06/30/96 0.00 (0.74) 0.00 0.00 (0.95)
- --------------------------------------------------------- ------------- ------------- ------------- --------- -------------
10/31/95 0.00 (0.89) 0.00 0.00 (1.17)
- --------------------------------------------------------- ------------- ------------- ------------- --------- -------------
10/31/94 0.00 (0.09) 0.00 0.00 (0.38)
- --------------------------------------------------------- ------------- ------------- ------------- --------- -------------
Administrative Class
06/30/98 0.00 (0.76) 0.00 0.00 (0.87)
- --------------------------------------------------------- ------------- ------------- ------------- --------- -------------
06/30/97 0.00 (2.38) 0.00 0.00 (2.50)
- --------------------------------------------------------- ------------- ------------- ------------- --------- -------------
11/01/95-06/30/96 0.00 (0.74) 0.00 0.00 (0.93)
- --------------------------------------------------------- ------------- ------------- ------------- --------- -------------
Enhanced Equity Fund
Institutional Class
06/30/98 $ 0.00 $ (7.73) $ 0.00 $ 0.00 $ (7.84)
- --------------------------------------------------------- ------------- ------------- ------------- --------- -------------
06/30/97 0.00 (3.63) 0.00 0.00 (3.73)
- --------------------------------------------------------- ------------- ------------- ------------- --------- -------------
11/01/95-06/30/96 0.00 (0.38) 0.00 0.00 (0.54)
- --------------------------------------------------------- ------------- ------------- ------------- --------- -------------
10/31/95 0.00 (0.17) 0.00 0.00 (0.42)
- --------------------------------------------------------- ------------- ------------- ------------- --------- -------------
10/31/94 0.00 (0.05) 0.00 0.00 (0.30)
- --------------------------------------------------------- ------------- ------------- ------------- --------- -------------
Administrative Class
08/21/97-06/30/98 0.00 (7.73) 0.00 0.00 (7.84)
- --------------------------------------------------------- ------------- ------------- ------------- --------- -------------
Balanced Fund
Institutional Class
06/30/98 $ 0.00 $ (1.09) $ 0.00 $ 0.00 $ (1.43)
- --------------------------------------------------------- ------------- ------------- ------------- --------- -------------
06/30/97 0.00 (1.96) 0.00 0.00 (2.32)
- --------------------------------------------------------- ------------- ------------- ------------- --------- -------------
11/01/95-06/30/96 0.00 (1.01) 0.00 0.00 (1.28)
- --------------------------------------------------------- ------------- ------------- ------------- --------- -------------
10/31/95 0.00 0.00 0.00 0.00 (0.44)
- --------------------------------------------------------- ------------- ------------- ------------- --------- -------------
10/31/94 0.00 (0.15) 0.00 0.00 (0.49)
- --------------------------------------------------------- ------------- ------------- ------------- --------- -------------
<CAPTION>
Ration of Net
Ratio of Investment
Net Asset Net Assets Expenses to Income (Loss)
Value End End of Average Net to Average
Selected Per Share Data for the Year or Period Ended: of Period Total Return Period (000s) Assets Net Assets
<S> <C> <C> <C> <C> <C>
Small-Cap Value Fund
Institutional Class
06/30/98 $ 17.68 17.77% $ 47,432 0.85% 1.65%
- --------------------------------------------------------- ------------- ------------- ------------- ------------ -------------
06/30/97 15.78 31.99 34,639 0.90 1.92
- --------------------------------------------------------- ------------- ------------- ------------- ------------ -------------
11/01/95-06/30/96 14.20 16.35 29,017 0.85* 2.12*
- --------------------------------------------------------- ------------- ------------- ------------- ------------ -------------
10/31/95 13.10 19.88 35,093 0.85 2.25
- --------------------------------------------------------- ------------- ------------- ------------- ------------ -------------
10/31/94 12.07 (2.89) 31,236 0.85 2.23
- --------------------------------------------------------- ------------- ------------- ------------- ------------ -------------
Administrative Class
06/30/98 17.63 17.41 10,751 1.10 1.39
- --------------------------------------------------------- ------------- ------------- ------------- ------------ -------------
06/30/97 15.76 31.70 5,916 1.16 1.68
- --------------------------------------------------------- ------------- ------------- ------------- ------------ -------------
11/01/95-06/30/96 14.20 15.64 4,433 1.10* 1.86*
- --------------------------------------------------------- ------------- ------------- ------------- ------------ -------------
Enhanced Equity Fund
Institutional Class
06/30/98 $ 12.64 32.33% $ 36,584 0.71% 0.63%
- --------------------------------------------------------- ------------- ------------- ------------- ------------ -------------
06/30/97 16.46 31.45 44,838 0.74 1.31
- --------------------------------------------------------- ------------- ------------- ------------- ------------ -------------
11/01/95-06/30/96 15.91 14.21 83,425 0.70* 1.58*
- --------------------------------------------------------- ------------- ------------- ------------- ------------ -------------
10/31/95 14.44 24.46 73,999 0.70 1.91
- --------------------------------------------------------- ------------- ------------- ------------- ------------ -------------
10/31/94 11.99 1.83 65,915 0.70 2.20
- --------------------------------------------------------- ------------- ------------- ------------- ------------ -------------
Administrative Class
08/21/97-06/30/98 12.59 23.85 10,409 0.95* 0.47*
- --------------------------------------------------------- ------------- ------------- ------------- ------------ -------------
Balanced Fund
Institutional Class
06/30/98 $ 12.15 19.91% $ 41,222 0.72% 2.91%
- --------------------------------------------------------- ------------- ------------- ------------- ------------ -------------
06/30/97 11.42 20.37 61,518 0.74 3.33
- --------------------------------------------------------- ------------- ------------- ------------- ------------ -------------
11/01/95-06/30/96 11.64 9.07 82,562 0.70* 3.46*
- --------------------------------------------------------- ------------- ------------- ------------- ------------ -------------
10/31/95 11.89 19.47 72,638 0.70 3.73
- --------------------------------------------------------- ------------- ------------- ------------- ------------ -------------
10/31/94 10.35 0.08 130,694 0.70 3.25
- --------------------------------------------------------- ------------- ------------- ------------- ------------ -------------
<CAPTION>
Portfolio
Selected Per Share Data for the Year or Period Ended: Turnover Rate
------------
<S> <C>
Small-Cap Value Fund
Institutional Class
06/30/98 41%
- --------------------------------------------------------- ------------
06/30/97 48
- --------------------------------------------------------- ------------
11/01/95-06/30/96 35
- --------------------------------------------------------- ------------
10/31/95 50
- --------------------------------------------------------- ------------
10/31/94 48
- --------------------------------------------------------- ------------
Administrative Class
06/30/98 41
- --------------------------------------------------------- ------------
06/30/97 48
- --------------------------------------------------------- ------------
11/01/95-06/30/96 35
- --------------------------------------------------------- ------------
Enhanced Equity Fund
Institutional Class
06/30/98 65%
- --------------------------------------------------------- ------------
06/30/97 91
- --------------------------------------------------------- ------------
11/01/95-06/30/96 53
- --------------------------------------------------------- ------------
10/31/95 21
- --------------------------------------------------------- ------------
10/31/94 44
- --------------------------------------------------------- ------------
Administrative Class
08/21/97-06/30/98 65
- --------------------------------------------------------- ------------
Balanced Fund
Institutional Class
06/30/98 186%
- --------------------------------------------------------- ------------
06/30/97 199
- --------------------------------------------------------- ------------
11/01/95-06/30/96 140
- --------------------------------------------------------- ------------
10/31/95 43
- --------------------------------------------------------- ------------
10/31/94 47
- --------------------------------------------------------- ------------
</TABLE>
1998 Annual Report See accompanying notes 25
<PAGE>
Statement of Assets and Liabilities
June 30, 1998
<TABLE>
<CAPTION>
Amounts in thousands, except per share amounts Emerging International Capital Mid-Cap
Markets Fund Developed Fund Appreciation Fund Growth Fund
-----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets:
Investments, at value $ 26,944 $ 139,082 $1,150,800 $ 808,379
- ----------------------------------------------------------------------------------------------------------------------------------
Cash and foreign currency 203 3,654 0 1,762
- ----------------------------------------------------------------------------------------------------------------------------------
Receivable for investments and foreign currency sold 82 602 9,631 0
- ----------------------------------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold 276 242 2,496 1,937
- ----------------------------------------------------------------------------------------------------------------------------------
Variation margin receivable 0 111 0 0
- ----------------------------------------------------------------------------------------------------------------------------------
Interest and dividends receivable 117 333 799 573
- ----------------------------------------------------------------------------------------------------------------------------------
Other assets 0 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------------
27,622 144,024 1,163,726 812,651
==================================================================================================================================
Liabilities:
Payable for investments and foreign currency purchased $ 0 $ 63 $ 38,145 $ 17,385
- ----------------------------------------------------------------------------------------------------------------------------------
Due to custodian 0 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------------
Written options outstanding 0 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed 16 5,052 1,190 689
- ----------------------------------------------------------------------------------------------------------------------------------
Dividends payable 3 23 79 28
- ----------------------------------------------------------------------------------------------------------------------------------
Accrued investment advisor's fee 20 68 400 280
- ----------------------------------------------------------------------------------------------------------------------------------
Accrued administrator's fee 12 58 244 189
- ----------------------------------------------------------------------------------------------------------------------------------
Accrued distribution and/or servicing fee 2 9 125 202
- ----------------------------------------------------------------------------------------------------------------------------------
53 5,273 40,183 18,773
==================================================================================================================================
Net Assets $ 27,569 $ 138,751 $1,123,543 $ 793,878
==================================================================================================================================
Net Assets Consist of:
Paid in capital $ 43,696 $ 110,763 $ 801,861 $ 613,076
- ----------------------------------------------------------------------------------------------------------------------------------
Undistributed (overdistributed) net investment income (3) 457 2,964 52
- ----------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed net realized gain (loss) (13,257) 292 69,031 41,026
- ----------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) (2,867) 27,239 249,687 139,724
- ----------------------------------------------------------------------------------------------------------------------------------
$ 27,569 $ 138,751 $1,123,543 $ 793,878
==================================================================================================================================
Net Assets:
Institutional Class $ 24,251 $ 122,126 $ 805,856 $ 437,985
- ----------------------------------------------------------------------------------------------------------------------------------
Administrative Class 1,339 6,299 132,384 73,614
- ----------------------------------------------------------------------------------------------------------------------------------
Other Classes 1,979 10,326 185,303 282,279
- ----------------------------------------------------------------------------------------------------------------------------------
Shares Issued and Outstanding:
Institutional Class 2,381 8,531 30,845 18,178
- ----------------------------------------------------------------------------------------------------------------------------------
Administrative Class 132 440 5,093 3,072
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value and Redemption Price Per Share
(Net Assets Per Share Outstanding):
Institutional Class $ 10.18 $ 14.32 $ 26.13 $ 24.09
- ----------------------------------------------------------------------------------------------------------------------------------
Administrative Class 10.14 14.30 25.99 23.96
- ----------------------------------------------------------------------------------------------------------------------------------
Cost of Investments Owned $ 29,806 $ 111,626 $ 901,113 $ 668,655
==================================================================================================================================
Cost of Foreign Currency Held $ 163 $ 3,907 $ 0 $ 0
==================================================================================================================================
<CAPTION>
Amounts in thousands, except per share amounts Micro-Cap Small-Cap
Growth Fund Growth Fund
----------------------------------
<S> <C> <C>
Assets:
Investments, at value $ 278,238 $ 48,459
- --------------------------------------------------------------------------------------------------
Cash and foreign currency 113 1
- --------------------------------------------------------------------------------------------------
Receivable for investments and foreign currency sold 1,303 605
- --------------------------------------------------------------------------------------------------
Receivable for Fund shares sold 222 48
- --------------------------------------------------------------------------------------------------
Variation margin receivable 0 0
- --------------------------------------------------------------------------------------------------
Interest and dividends receivable 102 19
- --------------------------------------------------------------------------------------------------
Other assets 0 0
- --------------------------------------------------------------------------------------------------
279,978 49,132
==================================================================================================
Liabilities:
Payable for investments and foreign currency purchased $ 17,000 $ 463
- --------------------------------------------------------------------------------------------------
Due to custodian 0 0
- --------------------------------------------------------------------------------------------------
Written options outstanding 0 0
- --------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed 43 0
- --------------------------------------------------------------------------------------------------
Dividends payable 0 0
- --------------------------------------------------------------------------------------------------
Accrued investment advisor's fee 261 38
- --------------------------------------------------------------------------------------------------
Accrued administrator's fee 52 9
- --------------------------------------------------------------------------------------------------
Accrued distribution and/or servicing fee 1 0
- --------------------------------------------------------------------------------------------------
17,357 510
==================================================================================================
Net Assets $ 262,621 $ 48,622
==================================================================================================
Net Assets Consist of:
Paid in capital $ 180,634 $ 36,503
- --------------------------------------------------------------------------------------------------
Undistributed (overdistributed) net investment income 0 4
- --------------------------------------------------------------------------------------------------
Accumulated undistributed net realized gain (loss) 8,065 2,088
- --------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) 73,922 10,027
- --------------------------------------------------------------------------------------------------
$ 262,621 $ 48,622
==================================================================================================
Net Assets:
Institutional Class $ 257,842 $ 47,641
- --------------------------------------------------------------------------------------------------
Administrative Class 4,779 981
- --------------------------------------------------------------------------------------------------
Other Classes 0 0
- --------------------------------------------------------------------------------------------------
Shares Issued and Outstanding:
Institutional Class 10,897 3,400
- --------------------------------------------------------------------------------------------------
Administrative Class 203 70
- --------------------------------------------------------------------------------------------------
Net Asset Value and Redemption Price Per Share
(Net Assets Per Share Outstanding):
Institutional Class $ 23.66 $ 14.01
- --------------------------------------------------------------------------------------------------
Administrative Class 23.52 13.97
- --------------------------------------------------------------------------------------------------
Cost of Investments Owned $ 204,316 $ 38,432
==================================================================================================
Cost of Foreign Currency Held $ 0 $ 0
==================================================================================================
</TABLE>
26 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Amounts in thousands, except per share amounts International
Growth Fund Renaissance Fund Core Equity Fund
----------------------------------------------------------
<S> <C> <C> <C>
Assets:
Investments, at value $ 6,894 $ 651,786 $ 132,407
- ----------------------------------------------------------------------------------------------------------------------------
Cash and foreign currency 0 357 1
- ----------------------------------------------------------------------------------------------------------------------------
Receivable for investments and foreign currency sold 411 11,230 0
- ----------------------------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold 0 3,789 169
- ----------------------------------------------------------------------------------------------------------------------------
Variation margin receivable 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------
Interest and dividends receivable 4 661 39
- ----------------------------------------------------------------------------------------------------------------------------
Other assets 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------
7,309 667,823 132,616
============================================================================================================================
Liabilities:
Payable for investments and foreign currency purchased $ 285 $ 8,489 $ 1,912
- ----------------------------------------------------------------------------------------------------------------------------
Due to custodian 194 0 0
- ----------------------------------------------------------------------------------------------------------------------------
Written options outstanding 0 55 0
- ----------------------------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed 0 912 16
- ----------------------------------------------------------------------------------------------------------------------------
Dividends payable 0 360 0
- ----------------------------------------------------------------------------------------------------------------------------
Accrued investment advisor's fee 5 310 58
- ----------------------------------------------------------------------------------------------------------------------------
Accrued administrator's fee 3 206 25
- ----------------------------------------------------------------------------------------------------------------------------
Accrued distribution and/or servicing fee 0 467 24
- ----------------------------------------------------------------------------------------------------------------------------
487 10,799 2,035
============================================================================================================================
Net Assets $ 6,822 $ 657,024 $ 130,581
============================================================================================================================
Net Assets Consist of:
Paid in capital $ 5,044 $ 512,594 $ 95,806
- ----------------------------------------------------------------------------------------------------------------------------
Undistributed (overdistributed) net investment income 302 46,534 1,369
- ----------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed net realized gain (loss) (1) 32,366 4,140
- ----------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) 1,477 65,530 29,266
- ----------------------------------------------------------------------------------------------------------------------------
$ 6,822 $ 657,024 $ 130,581
============================================================================================================================
Net Assets:
Institutional Class $ 6,822 $ 851 $ 1,915
- ----------------------------------------------------------------------------------------------------------------------------
Administrative Class 0 0 128,666
- ----------------------------------------------------------------------------------------------------------------------------
Other Classes 0 656,173 0
- ----------------------------------------------------------------------------------------------------------------------------
Shares Issued and Outstanding:
Institutional Class 504 44 94
- ----------------------------------------------------------------------------------------------------------------------------
Administrative Class 0 0 6,334
- ----------------------------------------------------------------------------------------------------------------------------
Net Asset Value and Redemption Price Per Share
(Net Assets Per Share Outstanding):
Institutional Class $ 13.55 $ 19.07 $ 20.39
- ----------------------------------------------------------------------------------------------------------------------------
Administrative Class 0.00 0.00 20.32
- ----------------------------------------------------------------------------------------------------------------------------
Cost of Investments Owned $ 5,417 $ 586,333 $ 103,141
============================================================================================================================
Cost of Foreign Currency Held $ 0 $ 0 $ 0
============================================================================================================================
<CAPTION>
Amounts in thousands, except per share amounts Mid-Cap Equity
Equity Fund Income Fund Value Fund
-------------------------------------------------------
<S> <C> <C> <C>
Assets:
Investments, at value $ 10,805 $ 201,860 $ 239,561
- -------------------------------------------------------------------------------------------------------------------------
Cash and foreign currency 0 1 1
- -------------------------------------------------------------------------------------------------------------------------
Receivable for investments and foreign currency sold 241 4,103 11,943
- -------------------------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold 10 542 133
- -------------------------------------------------------------------------------------------------------------------------
Variation margin receivable 0 0 0
- -------------------------------------------------------------------------------------------------------------------------
Interest and dividends receivable 1 582 529
- -------------------------------------------------------------------------------------------------------------------------
Other assets 0 0 0
- -------------------------------------------------------------------------------------------------------------------------
11,057 207,088 252,167
=========================================================================================================================
Liabilities:
Payable for investments and foreign currency purchased $ 190 $ 5,054 $ 12,119
- -------------------------------------------------------------------------------------------------------------------------
Due to custodian 0 0 0
- -------------------------------------------------------------------------------------------------------------------------
Written options outstanding 0 0 0
- -------------------------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed 0 160 394
- -------------------------------------------------------------------------------------------------------------------------
Dividends payable 0 9 32
- -------------------------------------------------------------------------------------------------------------------------
Accrued investment advisor's fee 5 75 88
- -------------------------------------------------------------------------------------------------------------------------
Accrued administrator's fee 2 48 67
- -------------------------------------------------------------------------------------------------------------------------
Accrued distribution and/or servicing fee 1 35 108
- -------------------------------------------------------------------------------------------------------------------------
198 5,381 12,808
=========================================================================================================================
Net Assets $ 10,859 $ 201,707 $ 239,359
=========================================================================================================================
Net Assets Consist of:
Paid in capital $ 8,766 $ 154,232 $ 193,061
- -------------------------------------------------------------------------------------------------------------------------
Undistributed (overdistributed) net investment income(3) 413 4,754 5,621
- -------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed net realized gain (loss) 169 14,470 14,836
- -------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) 1,511 28,251 25,841
- -------------------------------------------------------------------------------------------------------------------------
$ 10,859 $ 201,707 $ 239,359
=========================================================================================================================
Net Assets:
Institutional Class $ 8,488 $ 138,650 $ 83,219
- -------------------------------------------------------------------------------------------------------------------------
Administrative Class 2,371 11,699 10,349
- -------------------------------------------------------------------------------------------------------------------------
Other Classes 0 51,358 145,791
- -------------------------------------------------------------------------------------------------------------------------
Shares Issued and Outstanding:
Institutional Class 627 8,616 5,315
- -------------------------------------------------------------------------------------------------------------------------
Administrative Class 176 728 661
- -------------------------------------------------------------------------------------------------------------------------
Net Asset Value and Redemption Price Per Share
(Net Assets Per Share Outstanding):
Institutional Class $ 13.53 $ 16.09 $ 15.66
- -------------------------------------------------------------------------------------------------------------------------
Administrative Class 13.50 16.08 15.65
- -------------------------------------------------------------------------------------------------------------------------
Cost of Investments Owned $ 9,294 $ 173,609 $ 213,720
=========================================================================================================================
Cost of Foreign Currency Held $ 0 $ 0 $ 0
=========================================================================================================================
<CAPTION>
Amounts in thousands, except per share amounts Small-Cap Enhanced
Value Fund Equity Fund Balanced Fund
--------------------------------------------------------
<S> <C> <C> <C>
Assets:
Investments, at value $ 372,996 $ 46,972 $ 75,030
- -------------------------------------------------------------------------------------------------------------------------
Cash and foreign currency 68 0 2
- -------------------------------------------------------------------------------------------------------------------------
Receivable for investments and foreign currency sold 1,911 0 1,068
- -------------------------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold 2,870 42 2,085
- -------------------------------------------------------------------------------------------------------------------------
Variation margin receivable 0 0 19
- -------------------------------------------------------------------------------------------------------------------------
Interest and dividends receivable 673 46 211
- -------------------------------------------------------------------------------------------------------------------------
Other assets 0 0 0
- -------------------------------------------------------------------------------------------------------------------------
378,518 47,060 78,415
=========================================================================================================================
Liabilities:
Payable for investments and foreign currency purchased $ 2,968 $ 0 $ 9,989
- -------------------------------------------------------------------------------------------------------------------------
Due to custodian 0 0 0
- -------------------------------------------------------------------------------------------------------------------------
Written options outstanding 0 0 0
- -------------------------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed 455 39 95
- -------------------------------------------------------------------------------------------------------------------------
Dividends payable 42 0 22
- -------------------------------------------------------------------------------------------------------------------------
Accrued investment advisor's fee 179 17 24
- -------------------------------------------------------------------------------------------------------------------------
Accrued administrator's fee 112 9 16
- -------------------------------------------------------------------------------------------------------------------------
Accrued distribution and/or servicing fee 210 2 15
- -------------------------------------------------------------------------------------------------------------------------
3,966 67 10,161
=========================================================================================================================
Net Assets $ 374,552 $ 46,993 $ 68,254
=========================================================================================================================
Net Assets Consist of:
Paid in capital $ 355,089 $ 29,246 $ 52,788
- -------------------------------------------------------------------------------------------------------------------------
Undistributed (overdistributed) net investment income 6,285 1,429 2,578
- -------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed net realized gain (loss) 6,114 3,765 6,388
- -------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) 7,064 12,553 6,500
- -------------------------------------------------------------------------------------------------------------------------
$ 374,552 $ 46,993 $ 68,254
=========================================================================================================================
Net Assets:
Institutional Class $ 47,432 $ 36,584 $ 41,222
- -------------------------------------------------------------------------------------------------------------------------
Administrative Class 10,751 10,409 0
- -------------------------------------------------------------------------------------------------------------------------
Other Classes 316,369 0 27,032
- -------------------------------------------------------------------------------------------------------------------------
Shares Issued and Outstanding:
Institutional Class 2,682 2,894 3,392
- -------------------------------------------------------------------------------------------------------------------------
Administrative Class 610 826 0
- -------------------------------------------------------------------------------------------------------------------------
Net Asset Value and Redemption Price Per Share
(Net Assets Per Share Outstanding):
Institutional Class $ 17.68 $ 12.64 $ 12.15
- -------------------------------------------------------------------------------------------------------------------------
Administrative Class 17.63 12.59 0.00
- -------------------------------------------------------------------------------------------------------------------------
Cost of Investments Owned $ 365,932 $ 34,419 $ 68,637
=========================================================================================================================
Cost of Foreign Currency Held $ 0 $ 0 $ 0
=========================================================================================================================
</TABLE>
1998 Annual Report See accompanying notes 27
<PAGE>
Statement of Operations
For the year ended June 30, 1998
<TABLE>
<CAPTION>
Amounts in thousands Emerging International Capital Mid-Cap
Markets Fund Developed Fund Appreciation Fund Growth Fund
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income:
Dividends, net of foreign taxes $ 684 $ 2,006 $ 8,511 $ 4,903
- --------------------------------------------------------------------------------------------------------------------------------
Interest 108 541 2,397 1,951
- --------------------------------------------------------------------------------------------------------------------------------
Total Income 792 2,547 10,908 6,854
================================================================================================================================
Expenses:
Investment advisory fees 349 653 3,628 2,622
- --------------------------------------------------------------------------------------------------------------------------------
Administration fees 209 555 2,144 1,722
- --------------------------------------------------------------------------------------------------------------------------------
Distribution and/or servicing fees - Administrative Class 2 7 137 64
- --------------------------------------------------------------------------------------------------------------------------------
Distribution and/or servicing fees - Other Classes 21 64 633 1,554
- --------------------------------------------------------------------------------------------------------------------------------
Trustees' fees 4 10 70 51
- --------------------------------------------------------------------------------------------------------------------------------
Miscellaneous 12 4 0 0
- --------------------------------------------------------------------------------------------------------------------------------
Total Expenses 597 1,293 6,612 6,013
- --------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 195 1,254 4,296 841
================================================================================================================================
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investments (2,910) 2,149 89,980 58,714
- --------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on futures
contracts and written options 0 (294) 0 0
- --------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on foreign currency transactions (134) (177) 0 0
- --------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation
(depreciation) on investments (10,780) 16,501 125,025 57,682
- --------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation
(depreciation) on futures contracts and written options 0 117 0 0
- --------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation
(depreciation) on translation of assets and liabilities
denominated in foreign currencies (5) (307) 0 0
- --------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) (13,829) 17,989 215,005 116,396
- --------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Assets
Resulting from Operations $ (13,634) $ 19,243 $ 219,301 $ 117,237
================================================================================================================================
<CAPTION>
Amounts in thousands Micro-Cap Small-Cap
Growth Fund Growth Fund
-----------------------------
<S> <C> <C>
Investment Income:
Dividends, net of foreign taxes $ 1,276 $ 334
- -------------------------------------------------------------------------------------------------
Interest 949 101
- -------------------------------------------------------------------------------------------------
Total Income 2,225 435
=================================================================================================
Expenses:
Investment advisory fees 2,760 411
- -------------------------------------------------------------------------------------------------
Administration fees 552 103
- -------------------------------------------------------------------------------------------------
Distribution and/or servicing fees - Administrative Class 9 1
- -------------------------------------------------------------------------------------------------
Distribution and/or servicing fees - Other Classes 0 0
- -------------------------------------------------------------------------------------------------
Trustees' fees 20 4
- -------------------------------------------------------------------------------------------------
Miscellaneous 0 0
- -------------------------------------------------------------------------------------------------
Total Expenses 3,341 519
- -------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (1,116) (84)
=================================================================================================
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investments 24,846 3,966
- -------------------------------------------------------------------------------------------------
Net realized gain (loss) on futures
contracts and written options 0 0
- -------------------------------------------------------------------------------------------------
Net realized gain (loss) on foreign currency transactions. 0 0
- -------------------------------------------------------------------------------------------------
Net change in unrealized appreciation
(depreciation) on investments 36,520 2,887
- -------------------------------------------------------------------------------------------------
Net change in unrealized appreciation
(depreciation) on futures contracts and written options 0 0
- -------------------------------------------------------------------------------------------------
Net change in unrealized appreciation
(depreciation) on translation of assets and liabilities
denominated in foreign currencies 0 0
- -------------------------------------------------------------------------------------------------
Net Gain (Loss) 61,366 6,853
- -------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Assets
Resulting from Operations $ 60,250 $ 6,769
=================================================================================================
</TABLE>
28 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Amounts in thousands International Mid-Cap
Growth Fund Renaissance Fund Core Equity Fund Equity Fund
------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income:
Dividends, net of foreign taxes $ 33 $ 7,141 $ 559 $ 28
- ---------------------------------------------------------------------------------------------------------------------------------
Interest 8 1,054 338 27
- ---------------------------------------------------------------------------------------------------------------------------------
Total Income 41 8,195 897 55
=================================================================================================================================
Expenses:
Investment advisory fees 25 3,010 505 54
- ---------------------------------------------------------------------------------------------------------------------------------
Administration fees 15 2,006 221 21
- ---------------------------------------------------------------------------------------------------------------------------------
Distribution and/or servicing fees - Administrative Class 0 0 212 2
- ---------------------------------------------------------------------------------------------------------------------------------
Distribution and/or servicing fees - Other Classes 0 4,622 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
Trustees' fees 0 45 7 1
- ---------------------------------------------------------------------------------------------------------------------------------
Miscellaneous 1 1 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
Total Expenses 41 9,684 945 78
- ---------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 0 (1,489) (48) (23)
=================================================================================================================================
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investments 296 123,499 7,469 1,680
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on futures
contracts and written options 0 71 72 0
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on foreign currency transactions 9 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation
(depreciation) on investments 1,477 3,968 23,946 714
- ---------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation
(depreciation) on futures contracts and written options 0 77 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation
(depreciation) on translation of assets and liabilities
denominated in foreign currencies (4) 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) 1,778 127,615 31,487 2,394
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Assets
Resulting from Operations $ 1,778 $ 126,126 $ 31,439 $ 2,371
=================================================================================================================================
<CAPTION>
Amounts in thousands Equity Small-Cap Enhanced
Income Fund Value Fund Value Fund Equity Fund Balanced Fund
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends, net of foreign taxes $ 5,723 $ 4,626 $ 5,018 $ 638 $ 637
- ----------------------------------------------------------------------------------------------------------------------------------
Interest 345 253 870 19 1,780
- ----------------------------------------------------------------------------------------------------------------------------------
Total Income 6,068 4,879 5,888 657 2,417
==================================================================================================================================
Expenses:
Investment advisory fees 795 951 1,395 199 300
- ----------------------------------------------------------------------------------------------------------------------------------
Administration fees 487 721 850 111 187
- ----------------------------------------------------------------------------------------------------------------------------------
Distribution and/or servicing fees - Administrative Class 26 11 23 9 0
- ----------------------------------------------------------------------------------------------------------------------------------
Distribution and/or servicing fees - Other Classes 241 1,144 1,519 0 95
- ----------------------------------------------------------------------------------------------------------------------------------
Trustees' fees 16 20 18 5 7
- ----------------------------------------------------------------------------------------------------------------------------------
Miscellaneous 0 0 0 1 6
- ----------------------------------------------------------------------------------------------------------------------------------
Total Expenses 1,565 2,847 3,805 325 595
- ----------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 4,503 2,032 2,083 332 1,822
==================================================================================================================================
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investments 23,527 29,304 15,567 8,536 10,677
- ----------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on futures
contracts and written options 0 0 0 0 356
- ----------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on foreign currency transactions 0 0 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation
(depreciation) on investments 4,261 3,088 (3,548) 3,781 (1,136)
- ----------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation
(depreciation) on futures contracts and written options 0 0 0 0 90
- ----------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation
(depreciation) on translation of assets and liabilities
denominated in foreign currencies 0 0 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) 27,788 32,392 12,019 12,317 9,987
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Assets
Resulting from Operations $ 32,291 $ 34,424 $ 14,102 $ 12,649 $ 11,809
==================================================================================================================================
</TABLE>
1998 Annual Report See accompanying notes 29
<PAGE>
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Amounts in thousands Emerging Markets Fund International Developed Fund
--------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
Increase (Decrease) in Net Assets from: June 30, 1998 June 30, 1997 June 30, 1998 June 30, 1997
<S> <C> <C> <C> <C>
Operations:
Net investment income (loss) $ 195 $ 282 $ 1,254 $ 729
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) (3,044) 3,040 1,678 3,808
- ---------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) (10,785) 1,585 16,311 4,764
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) resulting from operations (13,634) 4,907 19,243 9,301
=================================================================================================================================
Distributions to Shareholders:
From net investment income
Institutional Class 0 (310) (834) 0
- ---------------------------------------------------------------------------------------------------------------------------------
Administrative Class 0 0 (4) 0
- ---------------------------------------------------------------------------------------------------------------------------------
Other Classes 0 0 (33) 0
- ---------------------------------------------------------------------------------------------------------------------------------
In excess of net investment income
Institutional Class 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
Administrative Class 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
Other Classes 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
From net realized capital gains
Institutional Class 0 0 (4,188) (4,189)
- ---------------------------------------------------------------------------------------------------------------------------------
Administrative Class 0 0 (94) (255)
- ---------------------------------------------------------------------------------------------------------------------------------
Other Classes 0 0 (291) 0
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions 0 (310) (5,444) (4,444)
=================================================================================================================================
Fund Share Transactions:
Receipts for shares sold
Institutional Class 23,187 12,784 66,712 43,648
- ---------------------------------------------------------------------------------------------------------------------------------
Administrative Class 1,685 305 5,786 1,683
- ---------------------------------------------------------------------------------------------------------------------------------
Other Classes 4,265 2,597 66,482 4,293
- ---------------------------------------------------------------------------------------------------------------------------------
Shares issued in reorganization
Other Classes 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of distributions
Institutional Class 0 222 4,242 3,449
- ---------------------------------------------------------------------------------------------------------------------------------
Administrative Class 0 0 98 255
- ---------------------------------------------------------------------------------------------------------------------------------
Other Classes 0 0 285 0
- ---------------------------------------------------------------------------------------------------------------------------------
Cost of shares redeemed
Institutional Class (39,014) (45,330) (54,800) (27,613)
- ---------------------------------------------------------------------------------------------------------------------------------
Administrative Class (199) (553) (2,245) (5,453)
- ---------------------------------------------------------------------------------------------------------------------------------
Other Classes (3,896) (360) (61,921) (637)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) resulting from Fund share transactions (13,972) 30,335 24,639 19,625
- ---------------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets (27,606) (25,738) 38,438 24,482
=================================================================================================================================
Net Assets:
Beginning of period 55,175 80,913 100,313 75,831
- ---------------------------------------------------------------------------------------------------------------------------------
End of period* $ 27,569 $ 55,175 $ 138,751 $ 100,313
- ---------------------------------------------------------------------------------------------------------------------------------
*Including net undistributed (overdistributed) investment income of: $ (3) $ (69) $ 457 $ 1,129
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Amounts in thousands Capital Appreciation Fund
--------------------------------------
Year Ended Year Ended
Increase (Decrease) in Net Assets from: June 30, 1998 June 30, 1997
<S> <C> <C>
Operations:
Net investment income (loss) $ 4,296 $ 4,349
- ---------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) 89,980 45,370
- ---------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 125,025 74,013
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) resulting from operations 219,301 123,732
=====================================================================================================================
Distributions to Shareholders:
From net investment income
Institutional Class (3,482) (2,203)
- ---------------------------------------------------------------------------------------------------------------------
Administrative Class (171) (7)
- ---------------------------------------------------------------------------------------------------------------------
Other Classes (177) 0
- ---------------------------------------------------------------------------------------------------------------------
In excess of net investment income
Institutional Class 0 0
- ---------------------------------------------------------------------------------------------------------------------
Administrative Class 0 0
- ---------------------------------------------------------------------------------------------------------------------
Other Classes 0 0
- ---------------------------------------------------------------------------------------------------------------------
From net realized capital gains
Institutional Class (44,474) (44,041)
- ---------------------------------------------------------------------------------------------------------------------
Administrative Class (1,807) (129)
- ---------------------------------------------------------------------------------------------------------------------
Other Classes (4,063) 0
- ---------------------------------------------------------------------------------------------------------------------
Total Distributions (54,174) (46,380)
=====================================================================================================================
Fund Share Transactions:
Receipts for shares sold
Institutional Class 261,189 165,774
- ---------------------------------------------------------------------------------------------------------------------
Administrative Class 134,100 3,111
- ---------------------------------------------------------------------------------------------------------------------
Other Classes 165,130 22,411
- ---------------------------------------------------------------------------------------------------------------------
Shares issued in reorganization
Other Classes 0 0
- ---------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of distributions
Institutional Class 37,066 36,552
- ---------------------------------------------------------------------------------------------------------------------
Administrative Class 1,973 136
- ---------------------------------------------------------------------------------------------------------------------
Other Classes 4,064 0
- ---------------------------------------------------------------------------------------------------------------------
Cost of shares redeemed
Institutional Class (164,429) (90,177)
- ---------------------------------------------------------------------------------------------------------------------
Administrative Class (18,481) (349)
- ---------------------------------------------------------------------------------------------------------------------
Other Classes (24,147) (1,587)
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) resulting from Fund share transactions 396,465 135,871
- ---------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets 561,592 213,223
=====================================================================================================================
Net Assets:
Beginning of period 561,951 348,728
- ---------------------------------------------------------------------------------------------------------------------
End of period* $ 1,123,543 $ 561,951
- ---------------------------------------------------------------------------------------------------------------------
*Including net undistributed (overdistributed) investment income of: $ 2,964 $ 8,727
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
30 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Amounts in thousands Mid-Cap Growth Fund Micro-Cap Growth Fund
---------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
Increase (Decrease) in Net Assets from: June 30, 1998 June 30, 1997 June 30, 1998 June 30, 1997
<S> <C> <C> <C> <C>
Operations:
Net investment income (loss) $ 841 $ 1,077 $ (1,116) $ (544)
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) 58,714 30,855 24,846 10,317
- ---------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 57,682 50,902 36,520 15,151
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) resulting from operations 117,237 82,834 60,250 24,924
=================================================================================================================================
Distributions to Shareholders:
From net investment income
Institutional Class (1,419) (604) 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
Administrative Class (35) (2) 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
Other Classes (41) 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
In excess of net investment income
Institutional Class 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
Administrative Class 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
Other Classes 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
From net realized capital gains
Institutional Class (21,350) (43,528) (22,885) (11,397)
- ---------------------------------------------------------------------------------------------------------------------------------
Administrative Class (510) (258) (396) (122)
- ---------------------------------------------------------------------------------------------------------------------------------
Other Classes (8,377) 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions (31,732) (44,392) (23,281) (11,519)
=================================================================================================================================
Fund Share Transactions:
Receipts for shares sold
Institutional Class 273,380 71,437 69,180 72,696
- ---------------------------------------------------------------------------------------------------------------------------------
Administrative Class 77,781 878 4,130 2,434
- ---------------------------------------------------------------------------------------------------------------------------------
Other Classes 249,617 10,914 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
Shares issued in reorganization
Other Classes 0 75,422 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of distributions
Institutional Class 22,222 42,923 19,223 9,931
- ---------------------------------------------------------------------------------------------------------------------------------
Administrative Class 544 261 396 121
- ---------------------------------------------------------------------------------------------------------------------------------
Other Classes 7,672 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
Cost of shares redeemed
Institutional Class (208,995) (72,699) (31,187) (15,697)
- ---------------------------------------------------------------------------------------------------------------------------------
Administrative Class (8,950) (280) (2,345) (1,174)
- ---------------------------------------------------------------------------------------------------------------------------------
Other Classes (92,467) (11,811) 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) resulting from Fund share transactions 320,804 117,045 59,397 68,311
- ---------------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets 406,309 155,487 96,366 81,716
=================================================================================================================================
Net Assets:
Beginning of period 387,569 232,082 166,255 84,539
- ---------------------------------------------------------------------------------------------------------------------------------
End of period* $ 793,878 $ 387,569 $ 262,621 $ 166,255
- ---------------------------------------------------------------------------------------------------------------------------------
*Including net undistributed (overdistributed) investment income
of: $ 52 $ 513 $ 0 $ 0
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
International
Amounts in thousands Small-Cap Growth Fund Growth Fund
--------------------------------------------------
Year Ended Year Ended Period from
Increase (Decrease) in Net Assets from: June 30, 1998 June 30, 1997 December 31, 1997
to June 30, 1998
<S> <C> <C> <C>
Operations:
Net investment income (loss) $ (84) $ (17) $ 0
- ---------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) 3,966 4,368 305
- ---------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 2,887 2,170 1,473
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) resulting from operations 6,769 6,521 1,778
=====================================================================================================================
Distributions to Shareholders:
From net investment income
Institutional Class 0 0 0
- ---------------------------------------------------------------------------------------------------------------------
Administrative Class 0 0 0
- ---------------------------------------------------------------------------------------------------------------------
Other Classes 0 0 0
- ---------------------------------------------------------------------------------------------------------------------
In excess of net investment income
Institutional Class 0 0 0
- ---------------------------------------------------------------------------------------------------------------------
Administrative Class 0 0 0
- ---------------------------------------------------------------------------------------------------------------------
Other Classes 0 0 0
- ---------------------------------------------------------------------------------------------------------------------
From net realized capital gains
Institutional Class (4,791) (17,212) 0
- ---------------------------------------------------------------------------------------------------------------------
Administrative Class (8) (10) 0
- ---------------------------------------------------------------------------------------------------------------------
Other Classes 0 0 0
- ---------------------------------------------------------------------------------------------------------------------
Total Distributions (4,799) (17,222) 0
=====================================================================================================================
Fund Share Transactions:
Receipts for shares sold
Institutional Class 13,396 10,629 5,044
- ---------------------------------------------------------------------------------------------------------------------
Administrative Class 1,166 1 0
- ---------------------------------------------------------------------------------------------------------------------
Other Classes 0 0 0
- ---------------------------------------------------------------------------------------------------------------------
Shares issued in reorganization
Other Classes 0 0 0
- ---------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of distributions
Institutional Class 4,781 12,306 0
- ---------------------------------------------------------------------------------------------------------------------
Administrative Class 7 10 0
- ---------------------------------------------------------------------------------------------------------------------
Other Classes 0 0 0
- ---------------------------------------------------------------------------------------------------------------------
Cost of shares redeemed
Institutional Class (5,918) (11,800) 0
- ---------------------------------------------------------------------------------------------------------------------
Administrative Class (171) (120) 0
- ---------------------------------------------------------------------------------------------------------------------
Other Classes 0 0 0
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) resulting from Fund share transactions 13,261 11,026 5,044
- ---------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets 15,231 325 6,822
=====================================================================================================================
Net Assets:
Beginning of period 33,391 33,066 0
- ---------------------------------------------------------------------------------------------------------------------
End of period* $ 48,622 $ 33,391 $ 6,822
- ---------------------------------------------------------------------------------------------------------------------
*Including net undistributed (overdistributed) investment income of: $ 4 $ 272 $ 302
- ---------------------------------------------------------------------------------------------------------------------
<CAPTION>
Amounts in thousands Renaissance Fund
--------------------------------------
Year Ended Nine Months Ended
Increase (Decrease) in Net Assets from: June 30, 1998 June 30, 1997
<S> <C> <C>
Operations:
Net investment income (loss) $ (1,489) $ 664
- --------------------------------------------------------------------------------------------------------
Net realized gain (loss) 123,570 42,917
- --------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 4,045 33,883
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) resulting from operations 126,126 77,464
========================================================================================================
Distributions to Shareholders:
From net investment income
Institutional Class 0 0
- --------------------------------------------------------------------------------------------------------
Administrative Class 0 0
- --------------------------------------------------------------------------------------------------------
Other Classes (425) (973)
- --------------------------------------------------------------------------------------------------------
In excess of net investment income
Institutional Class 0 0
- --------------------------------------------------------------------------------------------------------
Administrative Class 0 0
- --------------------------------------------------------------------------------------------------------
Other Classes 0 0
- --------------------------------------------------------------------------------------------------------
From net realized capital gains
Institutional Class 0 0
- --------------------------------------------------------------------------------------------------------
Administrative Class 0 0
- --------------------------------------------------------------------------------------------------------
Other Classes (80,722) (38,793)
- --------------------------------------------------------------------------------------------------------
Total Distributions (81,147) (39,766)
========================================================================================================
Fund Share Transactions:
Receipts for shares sold
Institutional Class 761 0
- --------------------------------------------------------------------------------------------------------
Administrative Class 0 0
- --------------------------------------------------------------------------------------------------------
Other Classes 464,673 151,393
- --------------------------------------------------------------------------------------------------------
Shares issued in reorganization
Other Classes 0 0
- --------------------------------------------------------------------------------------------------------
Issued as reinvestment of distributions
Institutional Class 0 0
- --------------------------------------------------------------------------------------------------------
Administrative Class 0 0
- --------------------------------------------------------------------------------------------------------
Other Classes 74,240 886
- --------------------------------------------------------------------------------------------------------
Cost of shares redeemed
Institutional Class 0 0
- --------------------------------------------------------------------------------------------------------
Administrative Class 0 0
- --------------------------------------------------------------------------------------------------------
Other Classes (311,714) (72,275)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) resulting from Fund share transactions 227,960 80,004
- --------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets 272,939 117,702
========================================================================================================
Net Assets:
Beginning of period 384,085 266,383
- --------------------------------------------------------------------------------------------------------
End of period* $ 657,024 $ 384,085
- --------------------------------------------------------------------------------------------------------
*Including net undistributed (overdistributed) investment income of: $ 46,534 $ 28,688
- --------------------------------------------------------------------------------------------------------
</TABLE>
1998 Annual Report See accompanying notes 31
<PAGE>
Statement of Changes in Net Assets (Cont.)
<TABLE>
<CAPTION>
Amounts in thousands Core Equity Fund Mid-Cap Equity Fund
----------------------------- ------------------------------
<S> <C> <C> <C> <C>
Year Ended Year Ended Year Ended Year Ended
Increase (Decrease) in Net Assets from: June 30, 1998 June 30, 1997 June 30, 1998 June 30, 1997
Operations:
Net investment income (loss) $ (48) $ 14 $ (23) $ (34)
- ----------------------------------------------------------------- ----------------------------- ------------------------------
Net realized gain (loss) 7,541 6,488 1,680 1,820
- ----------------------------------------------------------------- ----------------------------- ------------------------------
Net change in unrealized appreciation (depreciation) 23,946 1,191 714 (1,109)
- ----------------------------------------------------------------- ----------------------------- ------------------------------
Net increase (decrease) resulting from operations 31,439 7,693 2,371 677
================================================================= ============================= ==============================
Distributions to Shareholders:
From net investment income
Institutional Class 0 (20) 0 0
- ----------------------------------------------------------------- ----------------------------- ------------------------------
Administrative Class 0 (17) 0 0
- ----------------------------------------------------------------- ----------------------------- ------------------------------
Other Classes 0 0 0 0
- ----------------------------------------------------------------- ----------------------------- ------------------------------
In excess of net investment income
Institutional Class 0 0 0 0
- ----------------------------------------------------------------- ----------------------------- ------------------------------
Administrative Class 0 0 0 0
- ----------------------------------------------------------------- ----------------------------- ------------------------------
Other Classes 0 0 0 0
- ----------------------------------------------------------------- ----------------------------- ------------------------------
From net realized capital gains
Institutional Class (310) (616) (2,113) (1,083)
- ----------------------------------------------------------------- ----------------------------- ------------------------------
Administrative Class (7,237) (1,861) (138) 0
- ----------------------------------------------------------------- ----------------------------- ------------------------------
Other Classes 0 0 0 0
- ----------------------------------------------------------------- ----------------------------- ------------------------------
Total Distributions (7,547) (2,514) (2,251) (1,083)
================================================================= ============================= ==============================
Fund Share Transactions:
Receipts for shares sold
Institutional Class 998 1,642 1,655 574
- ----------------------------------------------------------------- ----------------------------- ------------------------------
Administrative Class 87,923 9,341 2,245 0
- ----------------------------------------------------------------- ----------------------------- ------------------------------
Other Classes 0 0 0 0
- ----------------------------------------------------------------- ----------------------------- ------------------------------
Shares issued in reorganization
Other Classes 0 0 0 0
- ----------------------------------------------------------------- ----------------------------- ------------------------------
Issued as reinvestment of distributions
Institutional Class 308 286 618 263
- ----------------------------------------------------------------- ----------------------------- ------------------------------
Administrative Class 7,237 1,878 138 0
- ----------------------------------------------------------------- ----------------------------- ------------------------------
Other Classes 0 0 0 0
- ----------------------------------------------------------------- ----------------------------- ------------------------------
Cost of shares redeemed
Institutional Class (6,755) (6,861) (1,428) (1,218)
- ----------------------------------------------------------------- ----------------------------- ------------------------------
Administrative Class (18,798) (19,716) (80) 0
- ----------------------------------------------------------------- ----------------------------- ------------------------------
Other Classes 0 0 0 0
- ----------------------------------------------------------------- ----------------------------- ------------------------------
Net increase (decrease) resulting from Fund share transactions 70,913 (13,430) 3,148 (381)
- ----------------------------------------------------------------- ----------------------------- ------------------------------
Total Increase (Decrease) in Net Assets 94,805 (8,251) 3,268 (787)
================================================================= ============================= ==============================
Net Assets:
Beginning of period 35,776 44,027 7,591 8,378
- ----------------------------------------------------------------- ----------------------------- ------------------------------
End of period* $ 130,581 $ 35,776 $ 10,859 $ 7,591
- ----------------------------------------------------------------- ----------------------------- ------------------------------
*Including net undistributed (overdistributed) investment
income of: $ 1,369 $ 2,331 $ 413 $ 474
- ----------------------------------------------------------------- ----------------------------- ------------------------------
<CAPTION>
Equity Income Fund
-------------------------------------
Year Ended Year Ended
Increase (Decrease) in Net Assets from: June 30, 1998 June 30, 1997
<S> <C> <C>
Operations:
Net investment income (loss) $ 4,503 $ 3,710
- --------------------------------------------------------------------- -------------------------------------
Net realized gain (loss) 23,527 20,609
- --------------------------------------------------------------------- -------------------------------------
Net change in unrealized appreciation (depreciation) 4,261 6,318
- --------------------------------------------------------------------- -------------------------------------
Net increase (decrease) resulting from operations 32,291 30,637
===================================================================== =====================================
Distributions to Shareholders:
From net investment income
Institutional Class (3,573) (4,331)
- --------------------------------------------------------------------- -------------------------------------
Administrative Class (251) (249)
- --------------------------------------------------------------------- -------------------------------------
Other Classes (611) (79)
- --------------------------------------------------------------------- -------------------------------------
In excess of net investment income
Institutional Class 0 0
- --------------------------------------------------------------------- -------------------------------------
Administrative Class 0 0
- --------------------------------------------------------------------- -------------------------------------
Other Classes 0 0
- --------------------------------------------------------------------- -------------------------------------
From net realized capital gains
Institutional Class (16,363) (14,051)
- --------------------------------------------------------------------- -------------------------------------
Administrative Class (1,189) (853)
- --------------------------------------------------------------------- -------------------------------------
Other Classes (3,155) 0
- --------------------------------------------------------------------- -------------------------------------
Total Distributions (25,142) (19,563)
===================================================================== =====================================
Fund Share Transactions:
Receipts for shares sold
Institutional Class 16,221 14,386
- --------------------------------------------------------------------- -------------------------------------
Administrative Class 4,124 2,032
- --------------------------------------------------------------------- -------------------------------------
Other Classes 44,411 11,794
- --------------------------------------------------------------------- -------------------------------------
Shares issued in reorganization
Other Classes 0 0
- --------------------------------------------------------------------- -------------------------------------
Issued as reinvestment of distributions
Institutional Class 19,487 17,797
- --------------------------------------------------------------------- -------------------------------------
Administrative Class 1,437 1,101
- --------------------------------------------------------------------- -------------------------------------
Other Classes 3,576 71
- --------------------------------------------------------------------- -------------------------------------
Cost of shares redeemed
Institutional Class (24,500) (37,514)
- --------------------------------------------------------------------- -------------------------------------
Administrative Class (2,429) (1,690)
- --------------------------------------------------------------------- -------------------------------------
Other Classes (7,993) (1,638)
- --------------------------------------------------------------------- -------------------------------------
Net increase (decrease) resulting from Fund share transactions 54,334 6,339
- --------------------------------------------------------------------- -------------------------------------
Total Increase (Decrease) in Net Assets 61,483 17,413
===================================================================== =====================================
Net Assets:
Beginning of period 140,224 122,811
- --------------------------------------------------------------------- -------------------------------------
End of period* $ 201,707 $ 140,224
- --------------------------------------------------------------------- -------------------------------------
*Including net undistributed (overdistributed) investment income of: $ 4,754 $ 2,380
- --------------------------------------------------------------------- -------------------------------------
</TABLE>
32 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Amounts in thousands Value Fund Small-Cap Value Fund
------------------------------- -------------------------------
Year Ended Year Ended Year Ended Year Ended
Increase (Decrease) in Net Assets from: June 30, 1998 June 30, 1997 June 30, 1998 June 30, 1997
<S> <C> <C> <C> <C>
Operations:
Net investment income (loss) $ 2,032 $ 1,702 $ 2,083 $ 742
- --------------------------------------------------------------- ------------------------------- -------------------------------
Net realized gain (loss) 29,304 13,315 15,567 5,616
- --------------------------------------------------------------- ------------------------------- -------------------------------
Net change in unrealized appreciation (depreciation) 3,088 19,593 (3,548) 6,732
- --------------------------------------------------------------- ------------------------------- -------------------------------
Net increase (decrease) resulting from operations 34,424 34,610 14,102 13,090
=================================================================================================================================
Distributions to Shareholders:
From net investment income
Institutional Class (1,220) (1,517) (339) (302)
- --------------------------------------------------------------- ------------------------------- -------------------------------
Administrative Class (72) 0 (55) (41)
- --------------------------------------------------------------- ------------------------------- -------------------------------
Other Classes (723) (451) (946) 0
- --------------------------------------------------------------- ------------------------------- -------------------------------
In excess of net investment income
Institutional Class 0 0 0 0
- --------------------------------------------------------------- ------------------------------- -------------------------------
Administrative Class 0 0 0 0
- --------------------------------------------------------------- ------------------------------- -------------------------------
Other Classes 0 0 0 0
- --------------------------------------------------------------- ------------------------------- -------------------------------
From net realized capital gains
Institutional Class (7,693) (2,344) (1,659) (4,690)
- --------------------------------------------------------------- ------------------------------- -------------------------------
Administrative Class (412) 0 (373) (700)
- --------------------------------------------------------------- ------------------------------- -------------------------------
Other Classes (12,584) 0 (6,325) 0
- --------------------------------------------------------------- ------------------------------- -------------------------------
Total Distributions (22,704) (4,312) (9,697) (5,733)
=================================================================================================================================
Fund Share Transactions:
Receipts for shares sold
Institutional Class 17,292 17,251 44,619 5,653
- --------------------------------------------------------------- ------------------------------- -------------------------------
Administrative Class 10,641 0 6,309 1,269
- --------------------------------------------------------------- ------------------------------- -------------------------------
Other Classes 62,175 21,246 307,809 36,469
- --------------------------------------------------------------- ------------------------------- -------------------------------
Shares issued in reorganization
Other Classes 0 80,835 0 0
- --------------------------------------------------------------- ------------------------------- -------------------------------
Issued as reinvestment of distributions
Institutional Class 8,878 3,854 1,770 4,969
- --------------------------------------------------------------- ------------------------------- -------------------------------
Administrative Class 483 0 427 741
- --------------------------------------------------------------- ------------------------------- -------------------------------
Other Classes 12,266 406 6,863 0
- --------------------------------------------------------------- ------------------------------- -------------------------------
Cost of shares redeemed
Institutional Class (22,371) (10,770) (38,130) (8,698)
- --------------------------------------------------------------- ------------------------------- -------------------------------
Administrative Class (725) 0 (2,525) (1,177)
- --------------------------------------------------------------- ------------------------------- -------------------------------
Other Classes (40,804) (16,043) (35,827) (1,201)
- --------------------------------------------------------------- ------------------------------- -------------------------------
Net increase (decrease) resulting from Fund share transactions 47,835 96,779 291,315 38,025
- --------------------------------------------------------------- ------------------------------- -------------------------------
Total Increase (Decrease) in Net Assets 59,555 127,077 295,720 45,382
=================================================================================================================================
Net Assets:
Beginning of period 179,804 52,727 78,832 33,450
- --------------------------------------------------------------- ------------------------------- -------------------------------
End of period* $ 239,359 $ 179,804 $ 374,552 $ 78,832
- --------------------------------------------------------------- ------------------------------- -------------------------------
*Including net undistributed (overdistributed) investment
income of: $ 5,621 $ 5,824 $ 6,285 $ 1,920
- --------------------------------------------------------------- ------------------------------- -------------------------------
<CAPTION>
Enhanced Equity Fund Balanced Fund
-------------------------------- ------------------------------
Year Ended Year Ended Year Ended Year Ended
Increase (Decrease) in Net Assets from: June 30, 1998 June 30, 1997 June 30, 1998 June 30, 1997
<S> <C> <C> <C> <C>
Operations:
Net investment income (loss) $ 332 $ 850 $ 1,822 $ 2,252
- --------------------------------------------------------------- -------------------------------- ------------------------------
Net realized gain (loss) 8,536 21,124 11,033 12,663
- --------------------------------------------------------------- -------------------------------- ------------------------------
Net change in unrealized appreciation (depreciation) 3,781 (4,893) (1,046) (3,065)
- --------------------------------------------------------------- -------------------------------- ------------------------------
Net increase (decrease) resulting from operations 12,649 17,081 11,809 11,850
=============================================================== ================================ ==============================
Distributions to Shareholders:
From net investment income
Institutional Class (414) (613) (1,462) (2,191)
- --------------------------------------------------------------- -------------------------------- ------------------------------
Administrative Class (30) 0 0 0
- --------------------------------------------------------------- -------------------------------- ------------------------------
Other Classes 0 0 (328) (22)
- --------------------------------------------------------------- -------------------------------- ------------------------------
In excess of net investment income
Institutional Class 0 0 0 0
- --------------------------------------------------------------- -------------------------------- ------------------------------
Administrative Class 0 0 0 0
- --------------------------------------------------------------- -------------------------------- ------------------------------
Other Classes 0 0 0 0
- --------------------------------------------------------------- -------------------------------- ------------------------------
From net realized capital gains
Institutional Class (16,994) (16,690) (5,071) (10,060)
- --------------------------------------------------------------- -------------------------------- ------------------------------
Administrative Class (1,166) 0 0 0
- --------------------------------------------------------------- -------------------------------- ------------------------------
Other Classes 0 0 (1,027) 0
- --------------------------------------------------------------- -------------------------------- ------------------------------
Total Distributions (18,604) (17,303) (7,888) (12,273)
=============================================================== ================================ ==============================
Fund Share Transactions:
Receipts for shares sold
Institutional Class 4,869 11,801 5,975 10,422
- --------------------------------------------------------------- -------------------------------- ------------------------------
Administrative Class 9,937 0 0 0
- --------------------------------------------------------------- -------------------------------- ------------------------------
Other Classes 0 0 26,009 2,436
- --------------------------------------------------------------- -------------------------------- ------------------------------
Shares issued in reorganization
Other Classes 0 0 0 0
- --------------------------------------------------------------- -------------------------------- ------------------------------
Issued as reinvestment of distributions
Institutional Class 17,291 17,302 6,512 12,237
- --------------------------------------------------------------- -------------------------------- ------------------------------
Administrative Class 1,196 0 0 0
- --------------------------------------------------------------- -------------------------------- ------------------------------
Other Classes 0 0 1,271 19
- --------------------------------------------------------------- -------------------------------- ------------------------------
Cost of shares redeemed
Institutional Class (24,666) (67,468) (36,139) (43,185)
- --------------------------------------------------------------- -------------------------------- ------------------------------
Administrative Class (517) 0 0 0
- --------------------------------------------------------------- -------------------------------- ------------------------------
Other Classes 0 0 (3,224) (139)
- --------------------------------------------------------------- -------------------------------- ------------------------------
Net increase (decrease) resulting from Fund share transactions 8,110 (38,365) 404 (18,210)
- --------------------------------------------------------------- -------------------------------- ------------------------------
Total Increase (Decrease) in Net Assets 2,155 (38,587) 4,325 (18,633)
=============================================================== ================================ ==============================
Net Assets:
Beginning of period 44,838 83,425 63,929 82,562
- --------------------------------------------------------------- -------------------------------- ------------------------------
End of period* $ 46,993 $ 44,838 $ 68,254 $ 63,929
- --------------------------------------------------------------- -------------------------------- ------------------------------
*Including net undistributed (overdistributed) investment
income of: $ 1,429 $ 3,436 $ 2,578 $ 2,860
- --------------------------------------------------------------- -------------------------------- ------------------------------
</TABLE>
1998 Annual Report See accompanying notes 33
<PAGE>
SCHEDULE OF INVESTMENTS
Emerging Markets Fund
June 30, 1998
<TABLE>
<CAPTION>
Value
Shares (000s)
- -------------------------------------------------------------------------------------------------
COMMON STOCKS 97.7%
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
Argentina 8.1%
YPF Sociedad Anonima - ADR 22,650 $ 681
Telefonica de Argentina - ADR 17,133 556
Compania Naviera Perez Co. - ADR 28,912 290
Banco Frances del Rio de la Plata SA 20,720 157
Astra Cia Argentina de Petro SA 94,650 152
Banco de Galicia y Buenos Aires SA de CV 32,369 146
Siderca SA `A' 74,816 127
Inversiones Y Representaciones SA - GDR 2,306 67
Molinos Rio de La Plata SA 13,266 29
Renault Argentina 11,160 22
----------
2,227
Brazil 9.7%
Telecomunicacoes Brasileiras - ADR 5,160 563
Centrais Electricas Brasileiras SA `B' 16,126 485
Banco Itau SA 403,900 231
Telecomunicacoes Brasileiras SA 2,485,000 198
Banco Bradesco SA 23,570,907 197
Petroleo Brasileiro SA 1,051,300 195
Companhia Vale do Rio Doce 9,062 184
Companhia Energetica de Minas Gerais 5,263,445 164
Companhia Siderurgica Nacional 3,471,500 87
Usimas Siderurgicas Minas Gerais SA PR 16,319 82
Companhia Paulista de Forca e Luz 680,200 70
Aracruz Celulose SA `B' 60,600 67
White Martins SA 62,555 59
Companhia Cervejaria Brahma 55,700 35
Souza Cruz SA 4,500 33
Centrais Geradoras do Sul do Brasil SA (b) 16,125,620 23
Companhia Vale do Rio Doce - Bonus Shares 29,662 0
----------
2,673
Chile 9.0%
Compania de Telecomunicaciones de Chile SA SP - ADR 28,551 580
Enersis SA SP - ADR 21,300 521
Empresa Nacional de Electricidad SA SP - ADR 27,350 390
Banco Santander Chile SP - ADR 19,000 245
Gener SA SP - ADR 13,228 241
Quimica Minera Chile SA SP - ADR 5,330 179
Compania Cervecerias Unidas SA SP - ADR 7,300 154
Maderas Y Sinteticos SP - ADR 14,090 114
Madeco SA - ADR 8,057 71
----------
2,495
Hungary 7.6%
Magyar Tavkozlesi Rt 135,000 783
MOL Magyar Olaj-es Gazipare 19,900 536
OTP Bank 6,100 299
Richter Gedeon 3,025 243
Danubius Hotel (b) 5,400 108
Pick Szeged Rt 1,500 88
Graboplast 1,300 33
----------
2,090
India 4.2%
India Public Sector Fund Limited 33,000 264
Hindalco Industries Limited SP - GDR 12,210 171
Videsh Sanchar Nigam Limited - ADR (b) 12,400 133
State Bank of India - GDR 6,200 73
Gujarat Ambuja - GDR 15,100 71
Bajaj Auto Limited 5,100 69
EIH Limited 11,780 63
BSES Limited - GDR 5,900 61
Tata Engineering and Locomotive Co. Limited SP - GDR 20,624 60
Indian Rayon & Industries Limited - GDR 18,825 59
Larsen & Tourbro Limited - GDR 6,180 56
Indian Hotels Co. - GDR 6,030 48
Steel Authority of India 15,300 38
----------
1,166
Israel 12.6%
Bank Hapoalim Limited 155,900 471
Formula Systems Limited (b) 11,100 388
ECI Telecommunications Limited 9,600 364
Koor Industries Limited 3,080 356
Teva Pharmaceutical Industries Limited 8,400 301
Bezek Israeli Telecommunication Corp. Limited 83,300 266
Industrial Buildings Corp. 152,000 255
Bank Leumi Le-Israel 115,000 229
Elite Industries Limited 6,600 216
Supersol Limited 63,500 209
Blue Square Chain Stores (b) 13,400 165
Israel Chemicals Limited 125,000 160
Agis Industries Limited 16,800 113
----------
3,493
Mexico 8.9%
Telefonos de Mexico - ADR 13,050 627
Cifra SA de CV `V' 150,137 226
Grupo Modelo SA de CV `C' 24,700 210
Alfa SA de CV `A' 34,100 139
Empresas La Moderna SA de CV (b) 23,100 134
Grupo Carso SA de CV `A1' 32,000 133
Grupo Televisa SA SP - GDR (b) 3,240 122
Kimberly Clark de Mexico SA de CV `A' 32,800 116
Grupo Mexico SA `B' 42,310 116
Grupo Industrial Bimbo SA de CV `A' 55,464 112
Cemex SA de CV 29,223 110
Grupo Financiero Banamex Accival `L' (b) 63,707 103
Formento Economico Mexicano SP - ADR 3,100 98
Industrias Penoles SA 30,000 95
Desc SA de CV `B' 14,200 72
TV Azteca SA de CV SP - ADR 4,000 43
----------
2,456
Peru 3.5%
Telefonica del Peru SA `B' 267,938 553
Credicorp Limited 11,516 169
Cerveceria Backus Y Johnston SA `T' 173,983 89
Luz del Sur Servicios SA `B' 37,700 28
Compania de Minas Buenaventura SA `A' 4,147 28
Ferreyros SA 18,303 25
Cementos Lima SA 12,643 24
Banco Wiese SP - ADR 6,000 21
Compania de Minas Buenaventura SA `B' 1,574 10
Southern Peru Copper Corp. `T' (b) 2,200 8
Minsur SA 3,868 8
----------
963
Poland 4.5%
Elektrim Spolka Akcyjna SA 28,131 343
Bank Slaski SA W Katawicach 2,880 193
Bank Rozwoju Eksportu SA 5,410 147
BIG Bank Gdanski SA 105,100 140
Wielkopolski Bank Kredytowy SA 14,900 115
Bank Przemyslowo-Handlow SA 900 65
Amica Wronki SA (b) 5,900 59
Stomil Olsztyn SA 7,600 52
Polifarb-Cieszyn-Wroclaw SA 17,256 45
Debica SA 2,180 44
Agros Holding SA (b) 2,300 34
BK Rozwoj Rights (b) 5,378 2
----------
1,239
Portugal 6.0%
Portugal Telecom SA 6,710 355
EDP-Electricidade de Portugal SA 10,700 248
Cimpor-Cimentos de Portugal SGPS SA 4,215 148
Banco Espirito Santo e Comercial de Lisboa SA 4,616 138
BPI-SGPS SA 4,100 132
Banco Comercial Portugues SA `R' 4,370 124
Companhia de Seguros Mundial Confianca SA (b) 4,600 122
Sonae Investimentor-Sociedade Gestora de
Participacoes Sociais SA 2,200 120
Jeronimo Martins, SGPS, SA 2,195 105
Investec-Consultoria Internacional SA (b) 2,100 96
Brisa-Auto Estradas de Portugal SA 1,300 55
----------
1,643
Russia 2.3%
Lukoil Holding SP - ADR 5,000 168
Unified Energy Systems - GDR (b) 12,250 164
Mosenergo SP - ADR 15,300 77
Rostelecom SP - ADR 5,400 72
AO Tatneft - ADR 7,500 58
Surgutneftegaz SP - ADR 12,600 51
Rao Gazprom - ADR 3,800 42
----------
632
</TABLE>
34 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Value
Shares (000s)
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
South Africa 6.1%
De Beers Centenary AG 11,620 $ 201
Liberty Life Association of Africa 9,550 183
South African Breweries Limited 8,990 182
Rembrandt Group Limited 26,940 165
Nedcor Limited - GDR 7,210 151
Nasionale Pers Beperk Limited 18,600 120
Barlow Limited 19,170 99
Smith C.G. Limited 36,330 98
ABSA Group Limited - GDR 7,717 93
Driefontein Consolidated Limited 17,300 88
Sasol Limited 15,000 86
ABSA Group Limited 11,480 70
Metro Cash & Carry Limited 70,500 44
Woolworth - GDR (b) 5,300 42
Anglo American Platinum Corp. Limited 3,300 35
FirstRand Limited 21,400 32
----------
1,689
Turkey 11.3%
Turkiye IS Bankasi `C' 14,577,500 588
Yapi Ve Kredi Bankasi AS 12,333,100 315
Turkiye Garanti Bankasi AS 6,669,000 307
Akbank TAS 7,828,680 253
Eregli Demir Ve Celik Fabrikalari TAS 1,469,000 229
Migros Turk TAS 225,400 220
Ege Biracilik Ve Malt Sanayii AS 1,814,000 215
Arcelik AS 4,049,500 190
Brisa Bridgestone Sabanci Lastik San. Ve Tic AS 3,727,000 178
Haci Omer Sabanci Holding AS 2,759,000 171
Adana Cimento Sanayii `A' 3,770,460 140
Aygaz AS 730,000 110
Turk Sise Ve Cam Fabrikalari AS 3,022,280 100
Northern Elektrik Telekomunikasyon AS (b) 363,000 97
----------
3,113
Venezuela 3.9%
Compania Anonima Nacional
Telefonos de Venezuela - ADR 19,200 480
La Electricidad de Caracas 588,588 266
Banco Provincial SA 104,485 125
Corporacion Venezolana de Cementos, SACA 103,900 103
Mavesa SA - ADR 15,350 49
Siderurgica Venezolana Sivensa `A' 474,483 42
----------
1,065
----------
Total Common Stocks 26,944
(Cost $29,806) ==========
Total Investments (a) 97.7% $ 26,944
(Cost $29,806)
Other Assets and Liabilities (Net) 2.3% 625
----------
Net Assets 100.0% $ 27,569
==========
Notes to Schedule of Investments (amounts in thousands):
(a) At June 30, 1998, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all investments
in which there was an excess of value over tax cost.
$ 4,319
Aggregate gross unrealized depreciation for all investments
in which there was an excess of tax cost over value. (7,265)
----------
Unrealized depreciation-net $ (2,946)
==========
</TABLE>
(b) Non-income producing security.
1998 Annual Report See accompanying notes 35
<PAGE>
SCHEDULE OF INVESTMENTS
International Developed Fund
June 30, 1998
<TABLE>
<CAPTION>
Value
Shares (000s)
- -------------------------------------------------------------------------------------------------
COMMON STOCKS 88.4%
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
Australia 1.0%
Westpac Banking Corp. 40,072 $ 244
National Australia Bank Limited 18,100 239
Lend Lease Corp. Limited 7,200 146
Telestra Corp. 54,600 140
Amcor Limited `A' 27,135 119
Broken Hill Property Co. 13,392 113
Comalco Limited 27,009 94
News Corp. Limited 9,863 80
Pasminco Limited 89,073 68
Tabcorp Holdings Limited 11,133 57
Leighton Holdings Limited 15,125 53
----------
1,353
Finland 5.3%
Nokia OYJ `A' 45,320 3,328
Werner Soderstrom Osakey `B' 12,500 819
Hartwall OYJ ABP 21,300 682
UPM-Kymmene Corp. 19,783 544
Neste OY 14,553 450
Okobank `A' 22,300 404
Metsa Serla `B' 41,540 401
Yit-Yhtyma OY 18,580 298
Rautaruukki OY 30,600 234
Viking Line AB 4,000 212
Rauma Group OY 400 8
-----------
7,380
France 15.3%
Elf Aquitaine SA 12,203 1,711
Lafarge SA 15,736 1,623
PSA Peugeot Citroen 7,050 1,512
VIVENDI 6,700 1,427
Alcatel Alsthom 6,410 1,302
LVMH 6,450 1,288
Societe Generale 6,100 1,265
L'OREAL 2,250 1,248
AXA-UAP 11,097 1,245
Total SA 9,481 1,230
Compagnie de Saint Gobain 6,370 1,178
Pinault-Printemps-Redoute SA 1,390 1,160
Groupe Danone 4,000 1,100
Banque National de Paris 12,320 1,004
Groupe GTM 8,800 912
Valeo 6,910 705
France Telecom SA 9,740 670
Credit Commercial de France 5,250 441
Alstom (b) 9,200 302
VIVENDI Warrants (b) 2,800 5
-----------
21,328
Germany 13.3%
SAP AG-Vorzug 3,435 2,331
Mannesmann AG 17,130 1,735
Bayer AG 32,041 1,650
Allianz AG 4,447 1,463
Volkswagen AG 1,418 1,361
Viag AG 1,700 1,147
Bayerische Vereinsbank AG 12,900 1,095
RWE AG 16,069 951
VEBA AG 13,650 929
Deutsche Bank 10,897 921
Daimler Benz AG 8,800 862
Muenchener Rueckversicherungs-Gesellschaft AG 1,600 792
Siemens AG 12,446 756
BASF AG 14,714 696
Metro AG 11,400 690
Commerzbank AG 14,711 562
Dresdner Bank AG 7,763 418
Allianz AG (b) 130 42
Daimler Benz AG Rights (b) 8,800 10
-----------
18,411
Ireland 2.2%
Allied Irish Banks PLC 88,300 $ 1,273
CRH PLC 55,700 789
Jefferson Smurfit Group PLC 142,000 421
Kerry Group PLC 20,700 286
Irish Life PLC 30,700 282
-----------
3,051
Italy 8.2%
ENI SpA 268,095 1,754
Fiat SpA 302,356 1,321
Telecom Italia Mobile SpA 211,000 1,288
Banca Commerciale Italiana 214,000 1,277
Assicuazioni Generali 36,635 1,189
Telecom Italia SpA 160,720 1,181
Edison SpA 88,000 705
Istituto Mobiliare Italiano SpA 44,000 692
Benetton Group SpA 270,400 560
Alleanza Assicurazioni 39,000 529
Instituto Nazionale delle Assicurazioni 165,000 468
Danieli & Co. 45,000 378
-----------
11,342
Japan 10.5%
Nippon Telegraph & Telephone 132 1,091
NEC Corp. 117,000 1,087
Fuji Photo Film 31,000 1,076
Fanuc 31,000 1,069
Aoyama Trading Co. Limited 41,800 1,027
Fujisawa Pharmaceutical 110,000 1,026
Sumitomo Bank Limited 104,000 1,009
Kirin Brewery Co. Limited 93,000 875
Murata Manufacturing Co. 21,000 679
Toyota Motor Corp. 24,000 619
Mitsui O.S.K. Lines Limited 352,000 597
Tokio Marine & Fire Insurance Co. 56,000 574
Matsushita Electric Industrial Co. Limited 35,000 561
Mitsubishi Heavy Industries Limited 139,000 523
Tokyo Electric Power 26,700 522
Bridgestone Corp. 22,000 519
Sumitomo Trust & Banking 116,000 517
Canon, Inc. 21,000 475
Hitachi Limited 67,000 436
Ito-Yokado Co. Limited 7,000 328
-----------
14,610
Netherlands 5.7%
Royal Dutch Petroleum Co. 37,007 2,048
ING Groep NV 16,611 1,086
Unilever NV 13,220 1,047
Verernigde Nederlandse Uitgeversbedrijven
Verenigd Bezit 22,664 822
Philips Electronics NV 7,284 611
Akzo Noble NV 2,272 504
Fortis Amev NV 8,554 500
ABN-AMRO Holdings 19,179 448
Koninklijke KPN NV 8,461 325
Elsevier NV 18,850 284
TNT Post Groep NV (b) 8,461 216
-----------
7,891
Portugal 4.2%
Portugal Telecom SA 27,475 1,453
EDP-Electricidade de Portugal SA 33,427 775
Banco Comercial Portugues SA `R' 24,913 706
Jeronimo Martins SGPS SA 14,508 696
Cimpor-Cimentos de Portugal SGPS SA 19,032 667
Sonae Investimentor-Sociedade Gestora de
Participacoes Sociais SA 8,478 462
Banco Espirito Santo e Comercial de Lisboa SA 11,600 348
BPI-SGPS SA 8,700 280
Companhia de Seguros Mundial Confianca SA (b) 8,400 223
Brisa-Auto Estradas de Portugal SA 4,261 182
-----------
5,792
Spain 5.4%
Telefonica de Espana 33,504 1,548
Banco Bilbao Vizcaya SA 22,426 1,150
Corp. Bancaria de Espana 33,368 748
Endesa SA 34,095 745
Iberdrola SA 45,082 731
</TABLE>
36 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Value
Shares (000s)
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
Gas Natural SDG SA `E' 6,980 $ 504
Banco Santander SA 18,792 481
Autopistas Concesionaria Espanola SA 28,949 448
Repsol SA 7,658 422
Gas Y Electricidad SA `2' 4,732 360
Banco Central Hispanoame 10,376 326
Autopistas Cesa Rights (b) 28,949 22
-----------
7,485
Switzerland 6.4%
Novartis AG 1,071 1,779
Nestle SA 601 1,284
Roche Holding AG 122 1,196
UBS AG (b) 3,175 1,178
Credit Suisse Group 4,146 921
Clariant AG (b) 1,090 717
Kuoni Reisen AG 130 644
Holderbank Financiere Glarus AG 385 489
ABB AG 294 433
TAG Heuer International SA 3,040 288
Ciba Specialty Chemicals AG 6 1
-----------
8,930
United Kingdom 10.9%
Lloyds TSB Group PLC 99,720 1,392
Zeneca Group 24,876 1,068
SmithKline Beecham PLC 82,252 1,000
Scottish & Newcastle PLC 64,877 912
Boots Co. PLC 53,260 885
Unilever PLC 80,988 869
Abbey National PLC 42,822 763
Prudential 57,131 753
Glaxo Wellcome PLC 24,865 748
Commercial Union PLC 38,034 710
British Telecommunications PLC 57,500 707
Tesco PLC 69,415 677
HSBC Holdings PLC 26,022 660
Scottish Power PLC 65,658 579
British Petroleum Co. PLC 35,603 518
Cadbury Schweppes PLC 30,000 464
National Power PLC 45,800 431
IMI PLC 67,229 416
TI Group PLC 54,000 415
Shell Transport & Trading Co. 56,737 398
Wolseley PLC 65,074 385
LASMO PLC 95,798 384
-----------
15,134
-----------
Total Common Stocks 122,707
(Cost $95,251) ===========
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 11.8%
- -------------------------------------------------------------------------------------------------
Principal
Amount
(000s)
<S> <C> <C>
Time Deposit 11.8%
State Street Bank
5.250% due 07/01/98 $ 16,375 16,375
-----------
Total Short-Term Instruments 16,375
(Cost $16,375) ===========
Total Investments (a) 100.2% $ 139,082
(Cost $111,626)
Other Assets and Liabilities (Net) (0.2%) (c) (331)
-----------
Net Assets 100.0% $ 138,751
===========
Notes to Schedule of Investments (amounts in thousands):
(a) At June 30, 1998, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all investments
in which there was an excess of value over tax cost. $ 31,758
Aggregate gross unrealized depreciation for all investments
in which there was an excess of tax cost over value. (4,341)
-----------
Unrealized appreciation-net $ 27,417
===========
</TABLE>
(b) Non-income producing security.
(c) Foreign cash in the amount of $476,663
has been segregated with the custodian to
cover margin requirements for the following
open futures contract at June 30, 1998:
<TABLE>
<CAPTION>
Unrealized
Type Contracts Appreciation
- -------------------------------------------------------------------------------------------------
Osaka 300 Index 231 $ 117
(d) Foreign forward currency contracts outstanding at June 30, 1998:
<CAPTION>
Principal
Amount Unrealized
Covered Expiration Appreciation/
Type By Contract Month (Depreciation)
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Buy BP 5,038 07/98 $ 1
Sell DM 39,800 07/98 (20)
Sell PE 24,321 07/98 0
-----------
$ (19)
===========
</TABLE>
(e) Principal amount denoted in indicated currency:
BP - British Pound
DM - German Mark
PE - Portuguese Escudo
1998 Annual Report See accompanying notes 37
<PAGE>
SCHEDULE OF INVESTMENTS
Capital Appreciation Fund
June 30, 1998
<TABLE>
<CAPTION>
Value
Shares (000s)
- -------------------------------------------------------------------------------------------------
COMMON STOCKS 95.6%
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
Building 0.7%
Centex Corp. 207,300 $ 7,825
Capital Goods 7.1%
Tyco International Limited 238,000 14,994
Textron, Inc. 209,000 14,983
Illinois Tool Works, Inc. 205,800 13,724
Johnson Controls, Inc. 235,400 13,462
United Technologies Corp. 125,600 11,618
Dana Corp. 203,300 10,877
-----------
79,658
Communications 1.0%
SBC Communications, Inc. 289,500 11,580
Consumer Discretionary 13.8%
Costco Cos., Inc. (b) 340,500 21,473
TJX Cos., Inc. 822,200 19,836
Jones Apparel Group, Inc. (b) 526,200 19,239
Dayton Hudson Corp. 342,800 16,626
Harley-Davidson, Inc. 425,300 16,480
Ford Motor Co. 231,500 13,659
Black & Decker Corp. 203,800 12,432
Federated Department Stores, Inc. (b) 227,100 12,221
Chrysler Corp. 214,400 12,087
CVS Corp. 290,500 11,311
-----------
155,364
Consumer Services 8.6%
Carnival Corp. `A' 522,600 20,708
Omnicom Group 407,300 20,314
New York Times Co. 199,900 15,842
Gannett, Inc. 210,000 14,923
Tribune Co. 184,600 12,703
Marriott International, Inc. `A' 366,700 11,872
-----------
96,362
Consumer Staples 6.4%
Safeway, Inc. (b) 517,800 21,068
Hershey Foods Corp. 198,300 13,683
Quaker Oats Co. 237,800 13,064
Kroger Co. (b) 288,000 12,348
Albertson's, Inc. 224,100 11,611
-----------
71,774
Energy 2.7%
Dresser Industries, Inc. 317,200 13,976
Transocean Offshore, Inc. 297,700 13,248
Rowan Cos., Inc. (b) 139,800 2,717
-----------
29,941
Financial & Business Services 28.4%
Capital One Financial Corp. 191,800 23,819
Cognizant Corp. 346,700 21,842
American Express Co. 133,900 15,265
Southtrust Corp. 347,750 15,127
Morgan Stanley, Dean Witter, Discover and Co. 162,700 14,867
Alliance Capital Management LP 564,200 14,281
Household International, Inc. 284,600 14,159
MBNA Corp. 425,300 14,035
Associates First Capital Corp. `A' 177,937 13,679
Hartford Financial Services Group, Inc. 117,200 13,405
Lincoln National Corp. 141,300 12,911
National City Corp. 176,000 12,496
Simon DeBartolo Group, Inc. 377,000 12,253
First Union Corp. 207,200 12,069
Provident Cos., Inc. `B' 336,800 11,620
Washington Mutual, Inc. 266,700 11,585
BankAmerica Corp. 133,800 11,565
Travelers Group, Inc. 188,600 11,434
Fleet Financial Group, Inc. 136,800 11,423
PNC Bank Corp. 212,215 11,420
Banc One Corp. 195,800 10,928
Allstate Corp. 118,900 10,887
BankBoston Corp. 176,000 9,790
Nationwide Financial Services, Inc. 161,300 8,226
-----------
319,086
Health Care 9.7%
Schering-Plough Corp. 179,100 16,410
HBO & Co. 449,700 15,852
Wellpoint Health Networks, Inc. (b) 200,400 14,830
Biogen, Inc. 298,600 14,631
Biomet, Inc. 436,600 14,435
Health Management Associates, Inc. `A' (b) 384,500 12,857
United Healthcare Corp. 181,200 11,506
HEALTHSOUTH Corp. (b) 331,600 8,849
-----------
109,370
Materials & Processing 0.9%
Leggett & Platt, Inc. 424,530 10,613
Technology 10.1%
Cisco Systems, Inc. (b) 194,300 17,888
BMC Software, Inc. (b) 316,500 16,438
Storage Technology Corp. (b) 360,400 15,632
Xerox Corp. 145,000 14,736
Computer Associates International, Inc. 246,600 13,702
Cadence Design Systems, Inc. (b) 395,500 12,359
Dell Computer Corp. (b) 128,400 11,917
International Business Machines Corp. 91,700 10,528
-----------
113,200
Transportation 4.2%
U.S. Airways Group, Inc. (b) 163,200 12,934
Continental Airlines, Inc. `B' (b) 208,000 12,662
Delta Air Lines, Inc. 89,100 11,516
FDX Corp. (b) 169,100 10,611
-----------
47,723
Utilities 2.0%
Consolidated Edison, Inc. 242,000 11,147
Ameritech Corp. 247,800 11,120
-----------
22,267
-----------
Total Common Stocks 1,074,763
(Cost $825,076) ===========
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 6.8%
- -------------------------------------------------------------------------------------------------
Principal
Amount
(000s)
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
Repurchase Agreement 6.8%
STATE STREET BANK
4.250% due 07/01/98 $ 76,037 76,037
(Dated 06/30/98. Collateralized by
U.S. Treasury Note 6.000% 08/15/99
Valued At $77,560,771. Repurchase
Proceeds Are $76,045,977.)
-----------
Total Short-Term Instruments 76,037
(Cost $76,037) ===========
Total Investments (a) 102.4% $ 1,150,800
(Cost $901,113)
Other Assets and Liabilities (Net) (2.4%) (27,257)
-----------
Net Assets 100.0% $ 1,123,543
===========
Notes to Schedule of Investments (amounts in thousands):
(a) At June 30, 1998, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 255,750
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (7,403)
-----------
Unrealized appreciation-net $ 248,347
===========
</TABLE>
(b) Non-income producing security.
38 PIMCO Funds See accompanying notes
<PAGE>
Schedule Of Investments
Mid-Cap Growth Fund
June 30, 1998
Value
Shares (000s)
- --------------------------------------------------------------------------------
COMMON STOCKS 96.1%
- --------------------------------------------------------------------------------
Aerospace 1.1%
BFGoodrich Co. 171,000 $ 8,486
Building 1.1%
Lennar Corp. 297,100 8,764
Capital Goods 5.9%
Waters Corp. (b) 176,300 10,391
General Dynamics Corp. 183,600 8,537
Aeroquip-Vickers, Inc. 140,600 8,208
Cordant Technologies, Inc. 171,200 7,897
Kaydon Corp. 215,800 7,620
Lear Corp. (b) 84,600 4,341
----------
46,994
Communications 1.0%
Century Telephone Enterprise 178,900 8,207
Consumer Discretionary 12.4%
Borders Group, Inc. (b) 326,300 12,073
Proffitt's, Inc. (b) 240,900 9,726
Warnaco Group, Inc. "A" 227,100 9,638
Dial Corp. 363,500 9,428
HON Industries 269,100 9,149
Abercrombie & Fitch Co. "A" (b) 202,400 8,906
Liz Claiborne, Inc. 161,800 8,454
Maytag Corp. 163,800 8,088
General Nutrition Cos., Inc. (b) 252,800 7,868
Herman Miller, Inc. 307,000 7,464
Bed, Bath & Beyond, Inc. (b) 142,400 7,378
Mattel, Inc. 1 0
----------
98,172
Consumer Services 5.5%
Royal Caribbean Cruises Limited 138,400 11,003
Promus Hotel Corp. (b) 239,837 9,234
CKE Restaurants, Inc. 216,900 8,947
GTECH Holdings Corp. (b) 253,400 8,536
Darden Restaurants, Inc. 374,700 5,948
----------
43,668
Consumer Staples 7.2%
McCormick & Co. 248,000 8,858
Rexall Sundown, Inc. (b) 240,500 8,478
Richfood Holdings, Inc. 409,250 8,466
Kroger Co. (b) 195,500 8,382
Suiza Foods Corp. (b) 136,700 8,159
Interstate Bakeries Corp. 231,400 7,680
Flowers Industries, Inc. 354,700 7,249
----------
57,272
Energy 3.9%
EVI Weatherford, Inc. (b) 217,000 8,056
Diamond Offshore Drilling, Inc. 199,000 7,960
National-Oilwell, Inc. (b) 289,600 7,765
R&B Falcon Corp. (b) 319,300 7,224
----------
31,005
Financial & Business Services 25.8%
Providian Financial Corp. 141,500 11,117
Ambac, Inc. 167,500 9,799
AmSouth Bancorp 240,700 9,463
Valassis Communications, Inc. (b) 243,900 9,405
Protective Life Corp. 250,600 9,194
PaineWebber Group, Inc. 212,300 9,102
Mutual Risk Management Limited 247,030 9,001
SunAmerica, Inc. 151,350 8,693
Popular, Inc. 130,000 8,645
Finova Group, Inc. 152,500 8,635
Crestar Financial Corp. 158,100 8,626
EXEL Limited 110,700 8,614
Cullen/Frost Bankers, Inc. 155,600 8,441
Bank United Corp. 175,000 8,378
Mercury Gen Corp. 128,200 8,245
Allmerica Financial Corp. 126,800 8,242
Equity Residential Properties Trust 172,500 8,183
Equifax, Inc. 221,100 8,029
Mercantile BanCorp. 152,313 7,673
Crescent Real Estate Equities Co. 219,800 7,391
Summit Bancorp 152,490 7,274
Travelers Property Casualty "A" 166,600 7,143
PMI Group, Inc. 83,600 6,134
BB&T Corp. 71,300 4,822
Life Re Corp. 53,800 4,412
----------
204,661
Health Care 9.4%
Total Renal Care Holdings 265,100 9,146
Health Management Associates, Inc. "A" (b) 268,925 8,992
Guidant Corp. 120,800 8,615
Watson Pharmaceuticals, Inc. (b) 180,000 8,404
Allegiance Corp. 158,700 8,133
Bausch & Lomb, Inc. 162,100 8,125
Trigon Healthcare, Inc. (b) 221,200 8,005
Mylan Laboratories, Inc. 260,100 7,819
DePuy, Inc. 263,100 7,433
----------
74,672
Materials & Processing 3.0%
Southdown, Inc. 131,600 9,393
Cytec Industries, Inc. (b) 166,200 7,354
Crompton & Knowles Corp. 274,300 6,909
----------
23,656
Technology 15.4%
Unisys Corp. (b) 461,100 13,026
Compuware Corp. (b) 243,900 12,469
Network Associates, Inc. (b) 248,350 11,890
Citrix Systems, Inc. (b) 152,800 10,448
Sanmina Corp. (b) 217,100 9,417
BEA Systems, Inc. (b) 408,500 9,370
Comverse Technology, Inc. (b) 179,400 9,306
Platinum Technology, Inc. (b) 315,000 8,997
Synopsys, Inc. (b) 190,900 8,734
Comdisco, Inc. 459,250 8,726
Tech Data Corp. (b) 189,600 8,129
American Power Conversion Corp. (b) 247,800 7,434
SCI Systems, Inc. (b) 120,000 4,515
----------
122,461
Transportation 2.2%
ASA Holdings, Inc. 180,600 8,962
Comair Holdings, Inc. 285,700 8,824
----------
17,786
Utilities 2.2%
El Paso Natural Gas Co. 239,700 9,169
IPALCO Enterprises, Inc. 184,400 8,194
----------
17,363
----------
Total Common Stocks 763,167
(Cost $623,443) ==========
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 5.7%
- --------------------------------------------------------------------------------
Principal
Amount
(000s)
Repurchase Agreement 5.7%
State Street Bank
4.250% due 07/01/98 $ 45,212 45,212
(Dated 06/30/98. Collateralized by
U.S. Treasury Note 5.625% 11/30/98
valued at $46,116,557. Repurchase
proceeds are $45,217,338.)
----------
Total Short-Term Instruments 45,212
(Cost $45,212) ==========
Total Investments (a) 101.8% $ 808,379
(Cost $668,655)
Other Assets and Liabilities (Net) (1.8%) (14,501)
----------
Net Assets 100.0% $ 793,878
==========
1998 Annual Report See accompanying notes 39
<PAGE>
Schedule of Investments (Cont.)
Mid-Cap Growth Fund
June 30, 1998
- --------------------------------------------------------------------------------
Notes to Schedule of Investments (amounts in thousands):
(a) At June 30, 1998, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 145,339
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (5,876)
----------
Unrealized appreciation-net $ 139,463
==========
(b) Non-income producing security.
40 PIMCO Funds See accompanying notes
<PAGE>
Schedule of Investments
Micro-Cap Growth Fund
June 30, 1998
Value
Shares (000s)
- --------------------------------------------------------------------------------
COMMON STOCKS 94.7%
- --------------------------------------------------------------------------------
Building 1.9%
Crossmann Communities, Inc. (b) 168,550 $ 5,120
Capital Goods 9.5%
Gardner Denver, Inc. (b) 183,750 5,076
Engineered Support Systems, Inc. 266,950 4,938
Quixote Corp. 300,000 3,675
Astec Industries, Inc. 96,600 3,333
HEICO Corp. 117,900 3,124
Strattec Strategy Corp. 89,000 2,681
HEICO Corp. "A" 64,400 1,650
MYR Group, Inc. 38,200 532
----------
25,009
Communications 1.0%
Davel Communications Group 108,300 2,640
Consumer Discretionary 30.3%
Winsloew Furniture, Inc. (b) 194,400 5,249
Movado Group, Inc. 173,312 5,243
Pillowtex Corp. 126,500 5,076
The First Years 264,000 5,016
S&K Famous Brands, Inc. (b) 272,300 4,833
Piercing Pagoda, Inc. (b) 132,700 4,810
Monaco Coach Corp. (b) 163,850 4,793
Dover Downs Entertainment, Inc. 145,700 4,517
Stanley Furniture Co, Inc. 161,600 4,101
Shoe Carnival, Inc. (b) 277,600 3,852
Virco Manufacturing Corp. 148,900 3,564
Crown Crafts, Inc. 192,500 2,960
Brookstone, Inc. (b) 193,400 2,901
Steinway Musical Instruments, Inc. (b) 89,500 2,886
National Vision Associates 398,600 2,641
Racing Champions Corp. (b) 223,800 2,616
Hot Topic, Inc. (b) 108,800 2,584
Chico's Fas, Inc. (b) 162,500 2,519
Equity Marketing, Inc. (b) 115,200 2,434
K-Swiss, Inc. "A" 123,600 2,426
Rocky Shoes & Boots, Inc. (b) 160,800 2,291
Quaker Fabric Corp. (b) 121,400 1,753
Craftmade International, Inc. 9,600 168
----------
79,233
Consumer Services 6.4%
Morton's Restaurant Group, Inc. (b) 177,800 4,278
American Coin Merchandising, Inc. (b) 211,600 4,179
HA-LO Industries, Inc. (b) 132,250 4,116
Taco Cabana, Inc. "A" (b) 256,300 1,618
INTRAV, Inc. 66,000 1,386
Seaway Food Town, Inc. 69,000 1,337
----------
16,914
Consumer Staples 4.4%
GoodMark Foods, Inc. 124,200 3,679
Rexall Sundown, Inc. (b) 84,200 2,968
Riviana Foods, Inc. 95,600 2,205
Tasty Baking Co. 117,250 1,825
Pilgrim's Pride Corp. 43,500 870
----------
11,547
Energy 2.3%
Key Production Co., Inc. (b) 283,000 3,361
Evergreen Resources, Inc. (b) 146,500 2,747
6,108
Environmental Services 0.6%
GTS Duratek, Inc. (b) 156,900 1,628
Financial & Business Services 20.6%
CIBER, Inc. (b) 139,500 5,301
Alabama National Bancorp 135,500 5,098
Warren Bancorp, Inc. 376,100 4,983
Dime Financial Corp. 138,100 4,920
Community First Bankshares, Inc. 180,000 4,714
Chittenden Corp. 127,143 4,450
Provident Bankshares Corp. 145,125 4,281
JeffBanks, Inc. 80,300 3,945
Progressive Bank, Inc. 96,800 3,781
Abington Bancorp, Inc. 180,400 3,382
Peoples Heritage Financial Group 136,600 3,227
Southwest Securities Group, Inc. 131,200 2,952
Ag Services of America, Inc. (b) 142,500 2,627
Educational Medical, Inc. 10,000 91
----------
53,752
Health Care 2.6%
Sheridan Healthcare, Inc. (b) 288,500 3,426
Osteotech, Inc. (b) 190,650 3,384
----------
6,810
Materials & Processing 0.4%
FiberMark, Inc. (b) 70,000 1,120
Technology 8.2%
Dendrite International, Inc. (b) 166,700 6,272
Cotelligent Group, Inc. (b) 234,200 5,474
Applied Voice Technology, Inc. (b) 216,400 4,977
SBS Technologies, Inc. (b) 121,300 3,654
Ardent Software, Inc. (b) 57,500 791
Gensym Corp. (b) 108,000 479
----------
21,647
Transportation 6.5%
Atlantic Coast Airlines Holdings (b) 243,900 7,317
Mesaba Holdings, Inc. (b) 249,300 5,734
USA Truck, Inc. (b) 149,000 2,403
Arkansas Best Corp. (b) 185,200 1,736
----------
17,190
----------
Total Common Stocks 248,718
(Cost $174,796) ==========
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 11.2%
- --------------------------------------------------------------------------------
Principal
Amount
(000s)
Repurchase Agreement 11.2%
State Street Bank
4.250% due 07/01/98 $ 29,520 29,520
(Dated 06/30/98. Collateralized by
U.S. Treasury Note 5.000% 01/31/99
valued at $30,115,193. Repurchase
proceeds are $29,523,485.)
----------
Total Short-Term Instruments 29,520
(Cost $29,520) ==========
Total Investments (a) 105.9% $ 278,238
(Cost $204,316)
Other Assets and Liabilities (Net) (5.9%) (15,617)
----------
Net Assets 100.0% $ 262,621
==========
Notes to Schedule of Investments (amounts in thousands):
(a) At June 30, 1998, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 77,033
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost over
value. (3,111)
----------
Unrealized appreciation-net $ 73,922
==========
(b) Non-income producing security.
1998 Annual Report See accompanying notes 41
<PAGE>
Schedule of Investments
Small-Cap Growth Fund
June 30, 1998
Value
Shares (000S)
- --------------------------------------------------------------------------------
COMMON STOCKS 91.5%
- --------------------------------------------------------------------------------
Building 3.3%
Lone Star Industries, Inc. 7,900 $ 609
D.R. Horton, Inc. 20,500 428
Toll Brothers 11,500 330
NVR, Inc. (b) 5,600 230
-----------
1,597
Capital Goods 9.7%
Manitowoc Co., Inc. 14,900 601
Lincoln Electric Co. (b) 22,800 504
Applied Power, Inc. "A" 13,600 467
Gleason Corp. 16,300 458
BE Aerospace, Inc. (b) 15,000 437
Gardner Denver, Inc. (b) 13,800 381
Kellstrom Industries, Inc. (b) 10,300 298
Barnes Group, Inc. 9,800 265
Simpson Industries 17,200 235
GenCorp, Inc. 9,300 235
Dura Automotive Systems, Inc. (b) 6,800 218
Aviall, Inc. (b) 15,400 211
Arvin Industries, Inc. 5,800 210
BREED Technologies, Inc. 12,400 190
-----------
4,710
Communications 0.6%
Pacific Gateway Exchange, Inc. 7,100 284
Consumer Discretionary 19.0%
Fred Meyer, Inc. (b) 16,500 701
Ethan Allen Interiors, Inc. 12,000 599
Williams-Sonoma, Inc. (b) 18,600 592
Windmere Durable Holdings 15,900 569
Ross Stores, Inc. 12,300 529
American Eagle Outfitters, Inc. (b) 13,050 503
Central Garden & Pet Co. (b) 15,800 492
National R.V. Holdings, Inc. 10,600 478
Ames Department Stores, Inc. (b) 18,000 474
Pier 1 Imports, Inc. 19,600 468
Movado Group, Inc. 15,400 466
Renters Choice, Inc. (b) 16,000 454
Pillowtex Corp. 10,198 409
Helen of Troy Limited (b) 17,900 394
Russ Berrie & Co., Inc. 15,500 388
Action Performance Cos., Inc. (b) 9,800 315
Goody's Family Clothing, Inc. (b) 5,400 296
Chattem, Inc. (b) 9,000 241
Winsloew Furniture, Inc. (b) 8,600 232
Party City Corp. 7,800 229
Gadzooks, Inc. (b) 8,300 229
Sunglass Hut International, Inc. (b) 18,100 200
-----------
9,258
Consumer Services 3.2%
HA-LO Industries, Inc. (b) 17,325 539
Foodmaker, Inc. (b) 25,700 434
Ruby Tuesday, Inc. 23,000 357
Showbiz Pizza Time, Inc. (b) 5,700 230
-----------
1,560
Consumer Staples 4.1%
Earthgrains Co. 9,400 525
Suiza Foods Corp. (b) 7,995 477
Michael Foods, Inc. 15,900 467
Twinlab Corp. (b) 5,900 258
Rexall Sundown, Inc. (b) 7,000 247
-----------
1,974
Energy 3.6%
Veritas DGC, Inc. (b) 10,600 529
Pride Petroleum Services, Inc. (b) 26,600 451
Varco International, Inc. (b) 22,100 438
R&B Falcon Corp. (b) 12,600 285
Newpark Resources, Inc. (b) 5,000 56
-----------
1,759
Financial & Business Services 19.8%
Metris Companies 8,700 555
Reinsurance Group of America 9,250 547
Capital Re Corp. 7,600 544
Protective Life Corp. 14,200 521
First Midwest Bancorp, Inc. 11,625 511
Peoples Heritage Financial Group 21,400 506
Raymond James Financial, Inc. 15,800 473
City National Corp. 12,700 469
Associated Banc-Corp 12,455 469
Westamerica BanCorp 14,500 466
UST Corp. 16,600 440
Enhance Financial Services Group, Inc. 12,000 405
Colonial BancGroup, Inc. 12,300 397
Merrill Corp. 17,400 384
CMAC Investment Corp. 5,900 363
Patriot American Hospitality, Inc. 14,098 337
Hospitality Properties Trust 10,400 334
CIBER, Inc. (b) 8,000 304
Felcor Suite Hotels, Inc. 9,400 295
Prentiss Properties Trust 12,000 292
Highwoods Properties, Inc. 8,900 288
Innkeepers USA Trust 21,100 266
Hooper Holmes, Inc. 11,500 241
Central Parking Corp. 5,000 227
-----------
9,634
Health Care 5.1%
Medical Manager Corp. 13,000 359
ESC Medical Systems Limited (b) 7,900 267
CareMatrix Corp. 9,800 264
Wesley Jessen VisionCare, Inc. (b) 10,800 250
Universal Health Services, Inc. (b) 4,200 245
Sierra Health Services, Inc. (b) 9,500 239
Veterinary Centers of America, Inc. (b) 12,300 231
Curative Health Services, Inc. (b) 8,100 231
Alternative Living Services, Inc. 7,700 208
Physician Reliance Network 16,000 183
-----------
2,477
Materials & Processing 5.1%
Mueller Industries, Inc. (b) 18,400 683
Martin Marietta Materials, Inc. 12,900 581
Cambrex Corp. 15,800 415
Hexcel Corp. (b) 16,200 366
RMI Titanium Co. (b) 9,700 221
Texas Industries, Inc. 3,900 207
-----------
2,473
Technology 10.2%
Lernout & Hauspie Speech Products NV (b) 10,600 633
International Telecommunication Data Systems, Inc. (b) 19,000 551
Veritas Software Corp. (b) 12,450 515
Sanmina Corp. (b) 11,800 512
World Access, Inc. (b) 16,500 495
NeoMagic Corp. (b) 31,300 485
CHS Electronics, Inc. (b) 21,100 377
Visio Corp. (b) 7,500 358
Gilat Satellite Networks Limited (b) 7,900 264
Datastream Systems, Inc. (b) 12,700 242
Memco Software Limited (b) 12,300 234
Scitex Corp. Limited (b) 16,000 209
Technitrol, Inc. 1,900 76
-----------
4,951
Transportation 6.7%
Coach USA, Inc. (b) 15,600 712
USFreightways Corp. 14,600 480
America West Holdings Corp "B" (b) 16,100 460
U.S. Xpress Enterprises, Inc. (b) 26,500 444
Wabash National Corp. 14,600 376
Atlantic Coast Airlines Holdings (b) 10,800 324
Midwest Express Holdings, Inc. 6,900 250
Alaska Air Group, Inc. (b) 3,900 213
-----------
3,259
Utilities 1.1%
Oneok, Inc. 13,100 522
-----------
Total Common Stocks 44,458
(Cost $34,431) ===========
42 PIMCO Funds See accompanying notes
<PAGE>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 8.2%
- --------------------------------------------------------------------------------
Repurchase Agreement 8.2%
State Street Bank
4.250% due 07/01/98 $ 4,001 $ 4,001
(Dated 06/30/98. Collateralized by
U.S. Treasury Note 6.000% 08/15/99
valued at $4,081,335. Repurchase
proceeds are $4,001,472.)
-----------
Total Short-Term Instruments 4,001
(Cost $4,001) ===========
Total Investments (a) 99.7% $ 48,459
(Cost $38,432)
Other Assets and Liabilities (Net) 0.3% 163
-----------
Net Assets 100.0% $ 48,622
===========
Notes to Schedule of Investments (amounts in thousands):
(a) At June 30, 1998, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 11,143
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (1,308)
-----------
Unrealized appreciation-net $ 9,835
===========
(b) Non-income producing security.
1998 Annual Report See accompanying notes 43
<PAGE>
SCHEDULE OF INVESTMENTS
International Growth Fund
June 30, 1998
VALUE
SHARES (000S)
- --------------------------------------------------------------------------------
COMMON STOCKS 98.3%
- --------------------------------------------------------------------------------
Australia 1.0%
OzEmail Limited - ADR 3,100 $ 70
Canada 1.9%
Loblaw Companies Limited 2,800 67
Sears Canada, Inc. 3,500 65
----------
132
Finland 3.7%
Nokia Corp. - ADR 1,900 138
Tietotehdas OY `B' (b) 1,500 114
----------
252
France 7.0%
Cap Gemini SA 1,000 157
Pinault-Printemps-Redoute SA 150 125
Scor 1,900 120
Coflexip SA - ADR 1,200 73
----------
475
Germany 13.0%
Bayerische Hypotheken-und Wechsel-Bank AG 3,500 221
Porsche AG 65 188
Mannesmann AG 1,800 182
SAP AG 300 182
Hugo Boss AG 50 110
----------
883
Hong Kong 1.3%
VTech Holdings Limited 23,800 89
Ireland 6.9%
Esat Telecom Group PLC - ADR (b) 6,400 243
CBT Group PLC SP - ADR (b) 2,400 128
CRH PLC 7,200 102
----------
473
Italy 7.5%
Credito Italiano 36,300 190
Instituto Nazionale delle Assicurazioni 63,400 180
Telecom Italia Mobile SpA 23,000 140
----------
510
Japan 2.2%
Kao Corp. 5,200 80
Sony Corp. 800 69
----------
149
Mexico 0.9%
Organizacion Soriana SA de CV `B' 22,000 63
Netherlands 16.6%
Benckiser NV `B' (b) 3,100 190
Akzo Noble NV 850 188
Ordina NV (b) 5,800 188
ING Groep NV 2,522 165
Getronics NV 2,908 151
De Boer Unigro NV 1,900 100
Simac Techniek NV 400 84
Philips Electronics NV 700 60
Ordina NV Coupons (b) 5,800 7
----------
1,133
Norway 1.9%
Merkantildata ASA 10,000 127
Portugal 3.5%
BPI-SGPS SA 3,900 126
Companhia de Seguros Mundial Confianca SA (b) 4,300 114
----------
240
Singapore 0.9%
Natsteel Electronics Limited 37,200 62
Spain 4.2%
Corp. Financiera Reunida SA (b) 14,700 222
Banco de Valencia SA 2,300 66
----------
288
Sweden 1.4%
Castellum AB 8,200 96
Switzerland 4.9%
Schweizerische Lebensversicherungs-und
Rentenanstalt (b) 225 190
Julius Baer Holding AG `B' 45 141
----------
331
United Kingdom 19.5%
Bank of Ireland 10,700 220
Colt Telecom Group PLC - ADR (b) 1,275 208
British Aerospace PLC 24,200 186
Vodafone Group PLC - ADR 1,300 164
ECsoft Group PLC SP - ADR (b) 4,400 142
GKN PLC 9,000 114
Royal Bank of Scotland Group PLC 6,500 113
Railtrack Group PLC (b) 3,900 95
Berkeley Group PLC 8,400 88
Ladbroke Group PLC (b) 200 1
----------
1,331
----------
Total Common Stocks 6,704
(Cost $5,227) ==========
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 2.8%
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000S)
Repurchase Agreement 2.8%
State Street Bank
4.250% Due 07/01/98 $ 190 190
(Dated 06/30/98. Collateralized by
U.S. Treasury Note 7.250% 05/15/16
valued at $193,849. Repurchase
proceeds are $190,022.)
----------
Total Short-Term Instruments 190
(Cost $190) ==========
Total Investments (a) 101.1% $ 6,894
(Cost $5,417)
Other Assets and Liabilities (Net) (1.1%) (72)
----------
Net Assets 100.0% $ 6,822
==========
Notes to Schedule of Investments (amounts in thousands):
(a) At June 30, 1998, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all investments
in which there was an excess of value over tax cost. $ 1,547
Aggregate gross unrealized depreciation for all investments
in which there was an excess of tax cost over value. (71)
----------
Unrealized appreciation-net $ 1,476
==========
(b) Non-income producing security.
(c) Foreign forward currency contracts outstanding at June 30, 1998:
Principal
Amount
Covered Expiration Unrealized
Type by Contract Month Appreciation
- --------------------------------------------------------------------------------
Buy BP 20 07/98 $ 0
Sell BP 20 07/98 0
Sell FM 84 07/98 0
Sell DG 42 07/98 0
Sell SK 9 07/98 0
----------
$ 0
==========
(d) Principal amount denoted in indicated currency:
BP - British Pound FM - Finnish Markka
DG - Dutch Guilder PE - Portuguese Escudo
44 PIMCO Funds See accompanying notes
<PAGE>
SCHEDULE OF INVESTMENTS
Renaissance Fund
June 30, 1998
Value
Shares (000s)
- --------------------------------------------------------------------------------
COMMON STOCKS 94.0%
- --------------------------------------------------------------------------------
Aerospace 1.3%
BFGoodrich Co. 177,900 $ 8,828
Building 5.0%
Lafarge Corp. 501,300 19,707
D.R. Horton, Inc. 638,600 13,331
----------
33,038
Capital Goods 5.5%
Ahmanson (H.F.) & Co. 204,300 14,505
Trinity Industries, Inc. 215,100 8,927
Kuhlman Corp. 170,000 6,726
Lear Corp. (b) 118,700 6,091
----------
36,249
Communications 8.1%
MediaOne Group, Inc. (b) 467,000 20,519
Sprint Corp. 170,300 12,006
AT&T Corp. 136,400 7,792
Citizens Utilities Co. 683,488 6,579
Glenayre Technologies, Inc. (b) 587,400 6,315
US West, Inc. 1 0
----------
53,211
Consumer Discretionary 17.0%
Sears Roebuck & Co. 471,300 28,779
Tandy Corp. 445,500 23,639
Hasbro, Inc. 496,900 19,534
Tommy Hilfiger Corp. (b) 263,300 16,456
B.J.'s Wholesale Club, Inc. (b) 363,500 14,767
Kmart Corp. (b) 434,200 8,358
----------
111,533
Consumer Services 2.6%
Waste Management, Inc. 390,500 13,668
Foodmaker, Inc. (b) 200,300 3,380
----------
17,048
Consumer Staples 2.8%
Philip Morris Cos., Inc. 472,200 18,593
Energy 5.8%
Enron Corp. 380,700 20,582
Atlantic Richfield Co. 222,800 17,406
----------
37,988
Financial & Business Services 17.9%
Equitable Cos., Inc. 312,200 23,395
NationsBank Corp. 204,600 15,652
Capital One Financial Corp. 124,100 15,412
Fremont General Corp. 275,200 14,912
Allmerica Financial Corp. 216,000 14,040
Greenpoint Financial Corp. 358,200 13,477
Travelers Group, Inc. 202,400 12,271
PMI Group, Inc. 108,600 7,968
----------
117,127
Health Care 7.4%
Integrated Health Services, Inc. 422,700 15,851
Wellpoint Health Networks, Inc. (b) 179,200 13,261
Allegiance Corp. 257,200 13,182
McKesson Corp. 80,600 6,549
----------
48,843
Materials & Processing 8.8%
Martin Marietta Materials, Inc. 409,400 18,423
Vulcan Materials Co. 141,600 15,107
E.I. Du Pont de Nemours, Inc. 170,000 12,686
Akzo Nobel NV SP - ADR 102,600 11,376
----------
57,592
Technology 7.7%
Learning Company, Inc. (b) 579,800 17,176
Flextronics International Limited 347,800 15,129
EG&G, Inc. 360,700 10,821
SCI Systems, Inc. (b) 169,700 6,385
Danka Business Systems PLC 101,600 1,126
----------
50,637
Transportation 3.1%
Atlas Air, Inc. 444,300 15,023
CNF Transportation, Inc. 119,900 5,096
----------
20,119
Utilities 1.0%
BEC Energy 164,600 $ 6,831
----------
Total Common Stocks 617,637
(Cost $554,163) ==========
- --------------------------------------------------------------------------------
CONVERTIBLE BONDS & NOTES 0.7%
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000S)
Industrial 0.7%
Pier 1 Imports, Inc.
5.750% due 10/01/03 $ 2,209 4,349
----------
Total Convertible Bonds & Notes 4,349
(Cost $2,370) ==========
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 4.5%
- --------------------------------------------------------------------------------
Commercial Paper 4.5%
Federal National Mortage Association
5.750% DUE 07/01/98 16,000 16,000
Federal Home Loan Bank Corp
5.400% due 07/01/98 13,800 13,800
----------
Total Short-Term Instruments 29,800
(Cost $29,800) ==========
Total Investments (a) 99.2% $ 651,786
(Cost $586,333)
Written Options (c) (0.0%) (55)
(Premiums $132)
Other Assets and Liabilities (Net) 0.8% 5,293
----------
Net Assets 100.0% $ 657,024
==========
Notes to Schedule of Investments (amounts in thousands):
(a) At June 30, 1998, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 78,482
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (14,992)
----------
Unrealized appreciation-net $ 63,490
==========
(b) Non-income producing security.
(c) Premiums received on written options:
Premium Value
Type Contracts (000s) (000s)
- --------------------------------------------------------------------------------
Call - OTC Tommy Hilfiger Corp. 630 $ 132 $ 55
Strike @ 65.00 Exp. 07/17/98
1998 Annual Report See accompanying notes 45
<PAGE>
SCHEDULE OF INVESTMENTS
Core Equity Fund
June 30, 1998
VALUE
SHARES (000S)
- --------------------------------------------------------------------------------
COMMON STOCKS 92.9%
- --------------------------------------------------------------------------------
Capital Goods 2.3%
Tyco International Limited 47,400 $ 2,986
Communications 5.5%
Tele-Communications, Inc. `A' (b) 87,668 3,370
Nextel Communications, Inc. `A' (b) 98,000 2,438
Chancellor Media Corp. 27,000 1,341
----------
7,149
Consumer Discretionary 18.6%
Sears Roebuck & Co. 83,300 5,086
CVS Corp. 80,100 3,119
Costco Cos., Inc. (b) 48,600 3,065
Home Depot, Inc. 36,650 3,044
TJX Cos., Inc. 122,800 2,962
Avon Products, Inc. 26,800 2,077
Dayton Hudson Corp. 41,600 2,018
Ralston-Ralston Purina Group 13,800 1,612
Bed, Bath & Beyond, Inc. (b) 26,100 1,352
----------
24,335
Consumer Services 5.3%
New York Times Co. 34,000 2,694
McDonald's Corp. 35,900 2,477
Waste Management, Inc. 49,600 1,736
----------
6,907
Consumer Staples 6.5%
Safeway, Inc. (b) 98,500 4,008
Pepsico, Inc. 45,600 1,878
Seagram Co. Limited 36,500 1,494
Sara Lee Corp. 20,800 1,163
----------
8,543
Energy 5.8%
Enron Corp. 56,800 3,071
Mobil Corp. 39,900 3,057
Atlantic Richfield Co. 18,500 1,445
----------
7,573
Financial & Business Services 12.7%
Capital One Financial Corp. 32,300 4,011
Morgan Stanley, Dean Witter, Discover and Co. 34,800 3,180
Washington Mutual, Inc. 70,350 3,056
Travelers Group, Inc. 42,650 2,586
Newcort Credit Group, Inc. 48,200 2,371
Countrywide Credit Industries, Inc. 27,300 1,385
----------
16,589
Health Care 16.1%
HBO & Co. 164,000 5,781
Warner-Lambert Co. 58,200 4,038
Pfizer, Inc. 30,000 3,261
Schering-Plough Corp. 34,900 3,198
Cardinal Health, Inc. 29,600 2,775
Guidant Corp. 27,200 1,940
----------
20,993
Materials & Processing 1.5%
Fort James Corp. 43,000 1,913
Technology 17.4%
America Online, Inc. (b) 42,200 4,473
Microsoft Corp. (b) 36,500 3,956
Ascend Communications, Inc. (b) 57,500 2,850
Cisco Systems, Inc. (b) 28,000 2,578
Lucent Technologies, Inc. 27,700 2,304
Tellabs, Inc. (b) 27,000 1,934
Intel Corp. 24,900 1,846
Computer Associates International, Inc. 28,200 1,567
Compaq Computer Corp. (b) 44,300 1,257
America Online, Inc. Rights (b) 42,200 0
----------
22,765
Transportation 1.2%
Delta Air Lines, Inc. 11,800 1,525
----------
Total Common Stocks 121,278
(Cost $92,012) ==========
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 8.5%
- --------------------------------------------------------------------------------
Repurchase Agreement 8.5%
State Street Bank
4.250% due 07/01/98 $ 11,129 $ 11,129
(Dated 06/30/98. Collateralized by
U.S. Treasury Note 5.750% 09/30/99
valued at $11,352,384. Repurchase
proceeds are $11,130,314.)
----------
Total Short-Term Instruments 11,129
(Cost $11,129) ==========
Total Investments (a) 101.4% $ 132,407
(Cost $103,141)
Other Assets and Liabilities (Net) (1.4%) (1,826)
----------
Net Assets 100.0% $ 130,581
==========
Notes to Schedule of Investments (amounts in thousands):
(a) At June 30, 1998, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 29,665
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (464)
----------
Unrealized appreciation-net $ 29,201
==========
(b) Non-income producing security.
46 PIMCO Funds See accompanying notes
<PAGE>
SCHEDULE OF INVESTMENTS
Mid-Cap Equity Fund
June 30, 1998
Value
Shares (000s)
- --------------------------------------------------------------------------------
COMMON STOCKS 92.5%
- --------------------------------------------------------------------------------
Communications 11.1%
Paging Network, Inc. (b) 17,400 $ 244
Viacom, Inc. `B' (b) 3,600 210
Frontier Corp. 5,900 186
ICG Communications, Inc. (b) 4,900 179
Univision Communications, Inc. (b) 4,500 168
General Instrument Corp. (b) 4,100 111
Echostar Communications Corp. (b) 4,400 106
----------
1,204
Consumer Discretionary 19.3%
Black & Decker Corp. 5,900 360
Office Depot, Inc. 10,500 331
Lowe's Cos., Inc. 6,400 260
Fred Meyer, Inc. (b) 5,900 251
Hasbro, Inc. 6,300 248
Rubbermaid, Inc. 7,000 232
Dollar Tree Stores, Inc. 4,950 201
Shaw Industries, Inc. 6,300 111
Amazon.com, Inc. (b) 1,100 110
----------
2,104
Consumer Services 5.3%
Jacor Communications, Inc. (b) 4,600 271
Darden Restaurants, Inc. 11,500 182
Comcast Corp. Special `A' 2,900 118
----------
571
Consumer Staples 2.1%
Whitman Corp. 10,000 229
Energy 1.5%
Ocean Energy, Inc. 8,450 165
Financial & Business Services 11.3%
Providian Financial Corp. 5,000 393
Capital One Financial Corp. 1,800 224
Dime Bancorp, Inc. 7,000 209
Summit Bancorp 3,300 157
T. Rowe Price Associates 4,000 150
CMAC Investment Corp. 1,500 92
----------
1,225
Health Care 11.8%
Watson Pharmaceuticals, Inc. (b) 8,300 388
Wellpoint Health Networks, Inc. (b) 3,200 237
Allergan, Inc. 3,500 162
Express Scripts, Inc. `A' (b) 1,800 145
Allegiance Corp. 2,700 138
McKesson Corp. 1,500 122
Henry Schein, Inc. 1,900 88
----------
1,280
Materials & Processing 1.3%
Solutia, Inc. 4,800 138
Miscellaneous 2.1%
Federal-Mogul Corp. 3,400 230
Technology 24.2%
Ceridian Corp. (b) 5,800 341
Intuit, Inc. (b) 4,200 257
BMC Software, Inc. (b) 4,800 249
PMC-Sierra, Inc. (b) 5,200 244
Unisys Corp. (b) 8,200 232
Sanmina Corp. (b) 5,300 230
Cambridge Technology Partners, Inc. (b) 3,400 186
Gentex Corp. (b) 9,400 170
IDX Systems Corp. (b) 3,000 138
Mercury Interactive Corp. (b) 3,000 134
IMS Health, Inc. (b) 2,000 119
Getty Images, Inc. (b) 5,000 111
Seagate Technology, Inc. (b) 4,300 102
Apple Computer, Inc. 2,800 80
Lexmark International Group, Inc. `A' (b) 700 43
----------
2,636
Transportation 2.5%
Coach USA, Inc. (b) 3,500 $ 159
ASA Holdings, Inc. 2,200 109
----------
268
----------
Total Common Stocks 10,050
(Cost $8,539) ==========
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 7.0%
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000S)
Repurchase Agreement 7.0%
State Street Bank
4.250% due 07/01/98 $ 755 755
(Dated 06/30/98. Collateralized by
U.S. Treasury Note 7.250% 05/15/16
Valued at $775,397. Repurchase
Proceeds are $755,089.)
----------
Total Short-Term Instruments 755
(Cost $755) ==========
Total Investments (a) 99.5% $ 10,805
(Cost $9,294)
Other Assets and Liabilities (Net) 0.5% 54
----------
Net Assets 100.0% $ 10,859
==========
Notes to Schedule of Investments (amounts in thousands):
(a) At June 30, 1998, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 1,576
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (75)
----------
Unrealized appreciation-net $ 1,501
==========
(b) Non-income producing security.
1998 Annual Report See accompanying notes 47
<PAGE>
SCHEDULE OF INVESTMENTS
Equity Income Fund
June 30, 1998
Value
Shares (000s)
- --------------------------------------------------------------------------------
COMMON STOCKS 96.2%
- --------------------------------------------------------------------------------
Aerospace 1.9%
BFGoodrich Co. 79,000 $ 3,920
Capital Goods 3.9%
GATX Corp. 94,200 4,133
General Signal Corp. 105,600 3,802
----------
7,935
Communications 5.7%
Bell Atlantic Corp. 86,132 3,930
US West, Inc. 83,000 3,901
Southern New England Telecommunications Corp. 56,800 3,720
----------
11,551
Consumer Discretionary 16.1%
Ford Motor Co. 87,900 5,186
VF Corp. 82,300 4,238
American Greetings Corp. `A' 81,000 4,126
Chrysler Corp. 71,260 4,017
Penny J.C., Inc. 55,000 3,977
Brunswick Corp. 159,000 3,935
Armstrong World Industries 55,000 3,706
Springs Industries, Inc. `A' 71,000 3,275
----------
32,460
Consumer Staples 9.5%
SUPERVALU, Inc. 181,000 8,032
RJR Nabisco Holdings Corp. 305,000 7,244
Anheuser Busch Cos., Inc. 82,000 3,870
----------
19,146
Energy 11.1%
Atlantic Richfield Co. 61,600 4,813
Repsol SA SP - ADR 71,000 3,905
Amoco Corp. 90,000 3,746
Occidental Petroleum Corp. 134,600 3,634
Ultramar Diamond Shamrock Corp. 112,000 3,535
Kerr McGee Corp. 48,100 2,784
----------
22,417
Financial & Business Services 16.3%
PNC Bank Corp. 138,000 7,426
Deluxe Corp. 119,700 4,287
Chase Manhattan Corp. 55,712 4,206
Union Planters Corp. 67,800 3,987
CIGNA Corp. 55,800 3,850
Bankers Trust New York Corp. 32,500 3,772
Ohio Casualty Corp. 80,500 3,562
Capstead Mortgage Corp. 196,000 1,642
----------
32,732
Health Care 6.3%
Pharmacia & Upjohn, Inc. 97,995 4,520
American Home Products Corp. 86,000 4,451
Mallinckrodt Group, Inc. 124,000 3,681
----------
12,652
Materials & Processing 9.5%
Union Carbide Corp. 80,000 4,270
Dow Chemical Co. 39,300 3,800
Westvaco Corp. 134,000 3,786
Phelps Dodge Corp. 65,000 3,717
USX-U.S. Steel Group, Inc. 109,000 3,597
----------
19,170
Technology 4.0%
Harris Corp. 90,600 4,048
International Business Machines Corp. 34,900 4,007
----------
8,055
Utilities 11.9%
Peoples Energy Corp. 110,000 4,249
DTE Energy Co. 103,000 4,159
Public Service Enterprise Group, Inc. 114,600 3,946
PP&L Resources, Inc. 173,000 3,925
NICOR, Inc. 97,000 3,892
Washington Water Power Co. 169,000 3,792
----------
23,963
----------
Total Common Stocks 194,001
(Cost $165,750) ==========
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 3.9%
- --------------------------------------------------------------------------------
Repurchase Agreement 3.9%
State Street Bank
4.250% due 07/01/98 $ 7,859 $ 7,859
(Dated 06/30/98. Collateralized by
U.S. Treasury Note 5.625% 11/30/98
Valued at $8,020,489. Repurchase
Proceeds are $7,859,928.)
----------
Total Short-Term Instruments 7,859
(Cost $7,859) ==========
Total Investments (a) 100.1% $ 201,860
(Cost $173,609)
Other Assets and Liabilities (Net) (0.1%) (153)
----------
Net Assets 100.0% $ 201,707
==========
Notes to Schedule of Investments (amounts in thousands):
(a) At June 30, 1998, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 37,725
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (9,606)
----------
Unrealized appreciation-net $ 28,119
==========
48 PIMCO Funds See accompanying notes
<PAGE>
SCHEDULE OF INVESTMENTS
Value Fund
June 30, 1998
Value
Shares (000s)
- --------------------------------------------------------------------------------
COMMON STOCKS 97.3%
- --------------------------------------------------------------------------------
Aerospace 1.4%
Northrop Grumman Corp. 32,600 $ 3,362
Capital Goods 0.9%
AGCO Corp. 105,000 2,159
Communications 5.9%
Southern New England Telecommunications Corp. 110,000 7,205
Bell Atlantic Corp. 152,000 6,935
----------
14,140
Consumer Discretionary 13.5%
Tandy Corp. 108,000 5,731
Chrysler Corp. 92,500 5,215
American Greetings Corp. "A" 100,000 5,094
Maytag Corp. 100,000 4,937
VF Corp. 91,800 4,728
Brunswick Corp. 118,200 2,925
Dillards, Inc. "A" 65,000 2,693
Tupperware Corp. 38,300 1,077
----------
32,400
Consumer Services 1.0%
Central Newspapers, Inc. "A" 33,400 2,330
Consumer Staples 11.7%
Anheuser Busch Cos., Inc. 152,500 7,196
SUPERVALU, Inc. 162,000 7,189
Whitman Corp. 220,000 5,046
RJR Nabisco Holdings Corp. 203,200 4,826
Kimberly-Clark Corp. 60,000 2,752
IBP, Inc. 55,000 997
----------
28,006
Energy 10.0%
Repsol SA SP - ADR 126,500 6,957
Ultramar Diamond Shamrock Corp. 200,000 6,312
Amoco Corp. 120,000 4,995
Kerr McGee Corp. 58,000 3,357
Atlantic Richfield Co. 16,800 1,312
Tidewater, Inc. 31,500 1,039
----------
23,972
Environmental Services 2.0%
Browning Ferris Industries, Inc. 136,300 4,736
Financial & Business Services 13.5%
Chase Manhattan Corp. 94,200 7,112
PNC Bank Corp. 125,000 6,726
Countrywide Credit Industries, Inc. 104,000 5,278
Bear Stearns Cos. 90,000 5,119
CIGNA Corp. 70,000 4,830
Loews Corp. 27,000 2,352
Union Planters Corp. 15,900 935
----------
32,352
Health Care 7.5%
Pharmacia & Upjohn, Inc. 152,510 7,035
American Home Products Corp. 91,900 4,756
Mallinckrodt Group, Inc. 160,000 4,750
Foundation Health Systems, Inc. "A" (b) 52,000 1,371
----------
17,912
Materials & Processing 8.8%
USG Corp. (b) 90,000 4,871
USX-U.S. Steel Group, Inc. 140,000 4,620
Union Carbide Corp. 85,000 4,537
Westvaco Corp. 144,600 4,085
Wellman, Inc. 134,700 3,056
----------
21,169
Technology 9.6%
Harris Corp. 160,000 7,150
International Business Machines Corp. 40,700 4,673
Storage Technology Corp. (b) 106,200 4,606
Adobe Systems, Inc. 102,400 4,346
Tektronix, Inc. 60,000 2,122
----------
22,897
Transportation 1.9%
UAL Corp. (b) 57,200 4,462
Utilities 9.6%
DTE Energy Co. 190,000 $ 7,671
NICOR, Inc. 190,000 7,624
Public Service Enterprise Group, Inc. 220,000 7,576
----------
22,871
----------
Total Common Stocks 232,768
(Cost $206,927) ==========
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 2.8%
- --------------------------------------------------------------------------------
Principal
Amount
(000s)
Repurchase Agreement 2.8%
State Street Bank
4.250% due 07/01/98 $ 6,793 6,793
(Dated 06/30/98. Collateralized by
U.S. Treasury Note 5.875% 07/31/99
Valued at $6,933,303. Repurchase
Proceeds are $6,793,802.)
----------
Total Short-Term Instruments 6,793
(Cost $6,793) ==========
Total Investments (a) 100.1% $ 239,561
(Cost $213,720)
Other Assets and Liabilities (Net) (0.1%) (202)
----------
Net Assets 100.0% $ 239,359
==========
Notes to Schedule of Investments (amounts in thousands):
(a) At June 30, 1998, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 33,148
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (7,556)
----------
Unrealized appreciation-net $ 25,592
==========
(b) Non-income producing security.
1998 Annual Report See accompanying notes 49
<PAGE>
Schedule of Investments
Small-Cap Value Fund
June 30, 1998
VALUE
SHARES (000s)
- --------------------------------------------------------------------------------
COMMON STOCKS 91.5%
- --------------------------------------------------------------------------------
Aerospace 0.9%
Kaman Corp. 183,000 $ 3,483
Building 3.8%
Hughes Supply, Inc. 111,000 4,065
Del Webb Corp. 145,000 3,761
Butler Manufacturing Co. 102,000 3,474
Lone Star Industries, Inc. 40,000 3,082
-----------
14,382
Capital Goods 10.4%
C&D Technologies, Inc. 65,000 3,770
Tecumseh Products Co. "A" 69,000 3,644
Westinghouse Air Brake Co. 138,000 3,640
Gleason Corp. 129,000 3,628
Arvin Industries, Inc. 98,000 3,559
Cordant Technologies, Inc. 77,000 3,552
Intermet Corp. 194,000 3,516
Allied Products Corp. 165,000 3,496
MTS Systems Corp. 211,000 3,389
GenCorp, Inc. 133,000 3,358
Barnes Group, Inc. 124,000 3,356
-----------
38,908
Communications 1.0%
Aliant Communications, Inc. 141,000 3,869
Consumer Discretionary 14.8%
Burlington Coat Factory Warehouse Corp. 187,000 4,208
Brown Group, Inc. 205,000 4,074
Claire's Stores, Inc. 189,000 3,875
Borg-Warner Automotive, Inc. 79,000 3,797
Bowne & Co., Inc. 83,000 3,735
Toro Co. 105,000 3,596
Enesco Group, Inc. 116,000 3,567
Fleetwood Enterprises, Inc. 88,000 3,520
Harman International Industries, Inc. 90,000 3,465
Guilford Mills, Inc. 173,000 3,460
Ennis Business Forms 296,000 3,441
Standard Products 122,000 3,431
Rival Co. 253,000 3,415
Sturm Ruger & Co., Inc. 203,000 3,400
Kimball International "B" 185,000 3,353
Garan, Inc. 36,000 977
Haverty Furniture Cos., Inc. 5,900 130
-----------
55,444
Consumer Services 3.8%
Applebee's International, Inc. 168,000 3,759
Chemed Corp. 105,000 3,577
Luby's Cafeterias, Inc. 200,000 3,512
Sbarro, Inc. 129,000 3,499
-----------
14,347
Consumer Staples 3.8%
Universal Corp. 98,000 3,663
Great Atlantic & Pacific Tea Co., Inc. 108,000 3,571
Nash Finch Co. 233,000 3,509
Universal Foods 152,000 3,372
-----------
14,115
Energy 6.7%
Vintage Petroleum, Inc. 203,000 3,832
Snyder Oil Corp. 190,000 3,788
World Fuel Services Corp. 204,000 3,532
Offshore Logistics, Inc. (b) 197,000 3,497
Western Gas Resources, Inc. 238,000 3,481
Aquila Gas Pipeline Corp. 277,000 3,393
Mitchell Energy & Development Corp. "B" 176,000 3,388
-----------
24,911
Financial & Business Services 19.9%
Kelly Services, Inc. 110,000 3,891
Excel Realty Trust, Inc. 128,000 3,688
Merrill Corp. 164,000 3,618
McGrath Rentcorp 170,000 3,591
Washington Federal, Inc. 129,000 3,564
Dain Rauscher Corp. 65,000 3,559
Orion Capital Corp. 63,000 3,520
Commercial Federal Corp. 111,000 3,510
Glimcher Realty Trust 180,000 3,499
AmerUs Life Holdings, Inc. 108,000 3,497
Franchise Finance Corp. of America 134,000 3,476
TriNet Corp. Realty Trust, Inc. 102,000 3,468
First Hawaiian, Inc. 95,000 3,456
American Health Properties, Inc. 138,000 3,450
BankAtlantic Bancorp, Inc. "A" 292,000 3,449
FirstBank Puerto Rico 132,000 3,432
Selective Insurance Group 153,000 3,428
United Dominion Realty Trust 245,000 3,399
National Golf Properties, Inc. 111,800 3,361
Southwest Securities Group, Inc. 148,000 3,330
PXRE Corp. 109,000 3,270
Presidential Life Corp. 60,600 1,295
-----------
74,751
Health Care 4.1%
Bindley Western Industries, Inc. 130,667 4,312
Bergen Brunswig Corp. "A" 83,000 3,849
Integrated Health Services, Inc. 96,000 3,600
Invacare Corp. 135,000 3,459
-----------
15,220
Materials & Processing 11.4%
Wausau-Mosinee Paper Corp. 169,000 3,866
Cleveland-Cliffs, Inc. 68,000 3,647
Texas Industries, Inc. 68,000 3,604
AK Steel Holding Corp. 200,000 3,575
Caraustar Industries, Inc. 123,000 3,552
Mississippi Chemical Corp. 214,000 3,518
Commercial Metals Co. 114,000 3,506
Park Electrochemical Corp. 164,000 3,464
Universal Forest Products, Inc. 210,000 3,439
Ethyl Corp. 540,000 3,308
Castle (A.M.) & Co. 103,900 2,286
Zeigler Coal Holding Co. 130,500 2,235
Commonwealth Industries, Inc. 152,000 1,520
Wellman, Inc. 53,300 1,209
-----------
42,729
Technology 1.1%
Pioneer Standard Electronics, Inc. 300,000 2,887
Cohu, Inc. 51,100 1,242
Innovex, Inc. 8,200 107
-----------
4,236
Transportation 3.0%
Roadway Express, Inc. 207,000 3,907
USFreightways Corp. 114,000 3,744
Sea Containers Limited "A" 91,000 3,481
-----------
11,132
Utilities 6.8%
Eastern Enterprises 88,000 3,773
United Illuminating Co. 72,000 3,645
Eastern Utilities Assn 138,000 3,623
Washington Gas Light Co. 135,000 3,611
Commonwealth Energy System 95,000 3,586
Public Service Co. of New Mexico 157,000 3,562
Rochester Gas & Electric Corp. 110,000 3,513
-----------
25,313
-----------
Total Common Stocks 342,840
(Cost $335,776) ===========
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 8.1%
- --------------------------------------------------------------------------------
Principal
Amount
(000s)
Repurchase Agreement 8.1%
State Street Bank
4.250% due 07/01/98 $ 30,156 30,156
(Dated 06/30/98. Collateralized by
U.S. Treasury Note 5.625% 11/30/98
valued at $30,759,457. Repurchase
proceeds are $30,159,560.)
-----------
Total Short-Term Instruments 30,156
(Cost $30,156) ===========
50 PIMCO Funds See accompanying notes
<PAGE>
Value
(000s)
- --------------------------------------------------------------------------------
Total Investments (a) 99.6% $ 372,996
(Cost $365,932)
Other Assets and Liabilities (Net) 0.4% 1,556
----------
Net Assets 100.0% $ 374,552
==========
Notes to Schedule of Investments (amounts in thousands):
(a) At June 30, 1998, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 24,863
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (17,931)
----------
Unrealized appreciation-net $ 6,932
==========
(b) Non-income producing security.
1998 Annual Report See accompanying notes 51
<PAGE>
Schedule of Investments
Enhanced Equity Fund
June 30, 1998
Value
Shares (000s)
- --------------------------------------------------------------------------------
COMMON STOCKS 98.5%
- --------------------------------------------------------------------------------
Aerospace 0.4%
Raytheon Co. "B" 2,200 $ 130
BFGoodrich Co. 1,600 79
-----------
209
Building 0.6%
Centex Corp. 7,100 268
Capital Goods 7.4%
General Electric Co. 11,900 1,083
Deere & Co. 6,300 333
Tyco International Limited 4,800 302
United Technologies Corp. 3,200 296
McDermott International, Inc. 7,300 251
Caterpillar, Inc. 4,100 217
Ingersoll-Rand Co. 4,700 207
General Dynamics Corp. 4,400 205
Nacco Industries, Inc. "A" 1,300 168
Eaton Corp. 1,500 117
Paccar, Inc. 2,200 115
Textron, Inc. 1,100 79
Case Corp. 1,300 63
Dana Corp. 800 43
-----------
3,479
Communications 7.3%
BellSouth Corp. 13,370 897
AT&T Corp. 11,600 663
Bell Atlantic Corp. 12,718 580
US West, Inc. 8,400 395
SBC Communications, Inc. 7,100 284
Knight-Ridder, Inc. 4,600 253
WorldCom, Inc. (b) 4,900 237
Viacom, Inc. "B" (b) 2,200 128
-----------
3,437
Consumer Discretionary 13.9%
Dayton Hudson Corp. 17,600 854
Procter & Gamble Co. 8,600 783
Ford Motor Co. 12,900 761
Wal-Mart Stores, Inc. 7,700 468
Liz Claiborne, Inc. 8,100 423
Gap, Inc. 5,800 357
Federated Department Stores, Inc. (b) 5,800 312
TJX Cos., Inc. 12,800 309
Costco Cos., Inc. (b) 4,800 303
VF Corp. 5,400 278
General Motors Corp. 4,100 274
Chrysler Corp. 4,600 259
Masco Corp. 4,000 242
Hasbro, Inc. 4,950 195
Black & Decker Corp. 2,300 140
CVS Corp. 3,600 140
Tandy Corp. 2,000 106
Cendant Corp. (b) 4,300 90
Mattel, Inc. 2,000 85
Pitney Bowes, Inc. 1,700 82
Parker Hannifin Corp. 1,900 72
-----------
6,533
Consumer Services 2.0%
Gannett, Inc. 8,000 568
New York Times Co. 2,800 222
Omnicom Group 2,800 140
-----------
930
Consumer Staples 6.1%
Coca-Cola Co. 8,700 744
Pepsico, Inc. 8,700 358
Quaker Oats Co. 6,300 346
Albertson's, Inc. 6,400 332
Unilever NV 3,200 253
Bestfoods 3,900 226
Sara Lee Corp. 4,000 224
Adolph Coors Co. "B" 4,800 163
Kroger Co. (b) 3,400 146
ConAgra, Inc. 2,000 63
-----------
2,855
Energy 6.0%
Exxon Corp. 10,300 735
Royal Dutch Petroleum Co. 6,000 329
Halliburton Co. 7,300 325
Sun Co., Inc. 6,600 256
Chevron Corp. 3,000 249
Rowan Cos., Inc. (b) 11,500 224
Schlumberger Limited 3,000 205
Baker Hughes, Inc. 3,700 128
Dresser Industries, Inc. 2,500 110
Mobil Corp. 1,300 100
USX Marathon Group 2,100 72
Ashland, Inc. 1,300 67
Texaco, Inc. 36 2
-----------
2,802
Financial & Business Services 19.6%
NationsBank Corp. 10,232 783
Morgan Stanley, Dean Witter, Discover and Co. 8,330 761
Travelers Group, Inc. 12,550 761
Chase Manhattan Corp. 8,158 616
Merrill Lynch & Co. 6,300 581
BankAmerica Corp. 6,300 544
Federal National Mortgage Assn. 7,100 431
Allstate Corp. 4,500 412
Citicorp 2,583 386
American International Group, Inc. 2,200 321
State Street Corp. 4,600 320
Bankers Trust New York Corp. 2,300 267
Associates First Capital Corp. "A" 3,380 260
Conseco, Inc. 5,300 248
Cognizant Corp. 3,900 246
Torchmark Corp. 5,200 238
Dun & Bradstreet 6,100 220
Bank of New York 3,500 212
Lehman Brothers Holdings, Inc. 2,500 194
Federal Home Loan Mortgage Corp. 3,700 174
Deluxe Corp. 4,700 168
BankBoston Corp. 3,000 167
Hartford Financial Services Group, Inc. 1,200 137
National City Corp. 1,500 107
Times Mirror Co. "A" 1,600 101
Comerica, Inc. 1,500 99
Household International, Inc. 1,800 90
St. Paul Cos., Inc. 1,800 76
MGIC Investment Corp. 1,300 74
Loews Corp. 800 70
Aetna, Inc. 900 69
SunAmerica, Inc. 850 49
MBIA, Inc. 200 15
First Union Corp. 30 2
-----------
9,199
Health Care 11.1%
Schering-Plough Corp. 11,000 1,008
Pfizer, Inc. 8,100 880
Bristol-Myers Squibb Co. 7,300 839
Merck & Co., Inc. 5,000 669
Becton Dickinson & Co. 3,800 295
Humana, Inc. (b) 9,300 290
Tenet Healthcare Corp. (b) 8,800 275
Johnson & Johnson 3,600 266
HBO & Co. 7,000 247
Guidant Corp. 2,500 178
Eli Lilly & Co. 2,400 159
Biomet, Inc. 2,700 89
PharMerica, Inc. (b) 2,867 35
-----------
5,230
52 PIMCO Funds See accompanying notes
<PAGE>
Value
Shares (000s)
- --------------------------------------------------------------------------------
Materials & Processing 3.7%
Fort James Corp. 7,500 $ 334
Bethlehem Steel Corp. (b) 24,500 305
USX-U.S. Steel Group, Inc. 7,400 244
Armco, Inc. (b) 32,300 206
Aluminum Co. of America 2,600 171
Reynolds Metals Co. 2,100 117
FMC Corp. (b) 1,600 109
E.I. Du Pont de Nemours, Inc. 1,300 97
Dow Chemical Co. 1,000 97
Tenneco, Inc. 1,000 38
Nucor Corp. 700 32
---------
1,750
Technology 13.6%
Microsoft Corp. (b) 18,200 1,972
Lucent Technologies, Inc. (b) 10,400 865
Sun Microsystems, Inc. 14,700 639
Intel Corp. 8,600 637
Compaq Computer Corp. (b) 22,374 635
Dell Computer Corp. (b) 3,900 362
Unisys Corp. (b) 12,200 345
Autodesk, Inc. 6,400 247
Xerox Corp. 1,700 173
Tellabs, Inc. (b) 2,200 158
International Business Machines Corp. 1,000 115
Cisco Systems, Inc. (b) 1,200 110
Applied Materials, Inc. (b) 2,900 85
Gateway 2000, Inc. (b) 800 40
Andrew Corp. (b) 500 9
---------
6,392
Transportation 3.9%
AMR Corp. (b) 8,400 699
U.S. Airways Group, Inc. (b) 5,200 412
Laidlaw, Inc. 18,700 228
Navistar International Corp. (b) 6,900 199
Southwest Airlines Co. 5,300 157
Delta Air Lines, Inc. 1,100 142
---------
1,837
Utilities 2.9%
Ameritech Corp. 11,500 516
DTE Energy Co. 5,500 222
Consolidated Edison, Inc. 4,400 203
Edison International 6,100 180
GPU, Inc. 4,600 174
FPL Group, Inc. 1,000 63
---------
1,358
---------
Total Common Stocks 46,279
(Cost $33,726) =========
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 1.5%
- --------------------------------------------------------------------------------
Principal
Amount
(000s)
Repurchase Agreement 1.5%
State Street Bank
4.250% due 07/01/98 $ 693 693
(Dated 06/30/98. Collateralized by
U.S. Treasury Note 6.125% 07/31/00
valued at $709,663. Repurchase
proceeds are $693,082.)
---------
Total Short-Term Instruments 693
(Cost $693) =========
Total Investments (a) 100.0% $ 46,972
(Cost $34,419)
Other Assets and Liabilities (Net) 0.0% 21
---------
Net Assets 100.0% $ 46,993
=========
Notes to Schedule of Investments (amounts in thousands):
(a) At June 30, 1998, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost. $ 13,059
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (506)
---------
Unrealized appreciation-net $ 12,553
=========
(b) Non-income producing security.
1998 Annual Report See accompanying notes 53
<PAGE>
SCHEDULE OF INVESTMENTS
Balanced Fund
June 30, 1998
Value
Shares (000s)
- --------------------------------------------------------------------------------
COMMON STOCKS 56.4%
- --------------------------------------------------------------------------------
Aerospace 0.4%
Northrop Grumman Corp. 2,400 $ 248
Building 0.2%
Centex Corp. 3,900 147
Capital Goods 2.4%
Tyco International Limited 4,600 290
Textron, Inc. 3,900 280
Illinois Tool Works, Inc. 3,900 260
Johnson Controls, Inc. 4,500 257
United Technologies Corp. 2,400 222
Dana Corp. 3,500 187
AGCO Corp. 8,500 175
----------
1,671
Communications 2.0%
Bell Atlantic Corp. 13,400 611
Southern New England Telecommunications Corp. 8,000 524
SBC Communications, Inc. 5,300 212
----------
1,347
Consumer Discretionary 7.9%
Chrysler Corp. 10,600 598
Tandy Corp. 8,500 451
American Greetings Corp. `A' 7,800 397
Brunswick Corp. 16,000 396
Costco Cos., Inc. (b) 6,000 378
VF Corp. 6,900 355
Jones Apparel Group, Inc. (b) 9,400 344
TJX Cos., Inc. 14,200 343
Maytag Corp. 6,700 331
Dayton Hudson Corp. 6,400 310
Harley-Davidson, Inc. 7,500 291
Ford Motor Co. 4,200 248
Federated Department Stores, Inc. (b) 4,300 231
Black & Decker Corp. 3,600 220
CVS Corp. 5,100 199
Dillards, Inc. `A' 4,700 195
Tupperware Corp. 3,200 90
----------
5,377
Consumer Services 2.8%
Carnival Corp. `A' 10,400 412
Omnicom Group 6,900 344
New York Times Co. 3,600 285
Gannett, Inc. 3,400 242
Marriott International, Inc. `A' 7,300 236
Tribune Co. 3,400 234
Central Newspapers, Inc. `A' 2,700 188
----------
1,941
Consumer Staples 5.5%
Anheuser Busch Cos., Inc. 11,700 552
SUPERVALU, Inc. 12,100 537
Whitman Corp. 19,000 436
Safeway, Inc. (b) 9,300 378
RJR Nabisco Holdings Corp. 15,900 378
Kimberly-Clark Corp. 8,200 376
Hershey Foods Corp. 3,800 262
Quaker Oats Co. 4,300 236
Kroger Co. (b) 5,200 223
Albertson's, Inc. 4,100 212
IBP, Inc. 10,000 181
----------
3,771
Energy 3.6%
Repsol SA SP - ADR 10,300 567
Ultramar Diamond Shamrock Corp. 16,700 527
Amoco Corp. 9,000 375
Kerr McGee Corp. 4,700 272
Dresser Industries, Inc. 5,600 247
Transocean Offshore, Inc. 5,300 236
Atlantic Richfield Co. 1,200 94
Tidewater, Inc. 2,400 79
Rowan Cos., Inc. (b) 2,600 51
----------
2,448
Environmental Services 0.6%
Browning Ferris Industries, Inc. 11,100 386
Financial & Business Services 12.1%
PNC Bank Corp. 13,800 743
Chase Manhattan Corp. 7,700 581
Capital One Financial Corp. 3,600 447
Countrywide Credit Industries, Inc. 7,600 386
Bear Stearns Cos 6,300 358
CIGNA Corp. 5,100 352
Cognizant Corp. 5,300 334
American Express Co. 2,600 296
Southtrust Corp. 6,500 283
Morgan Stanley, Dean Witter, Discover and Co. 3,000 274
MBNA Corp. 8,100 267
Hartford Financial Services Group, Inc. 2,300 263
Alliance Capital Management LP 10,300 261
Household International, Inc. 5,100 254
Associates First Capital Corp. `A' 3,248 250
Lincoln National Corp. 2,700 247
First Union Corp. 3,900 227
Simon DeBartolo Group, Inc. 6,700 218
Washington Mutual, Inc. 5,000 217
Travelers Group, Inc. 3,550 215
Provident Cos., Inc. `B' 6,100 210
National City Corp. 2,900 206
Fleet Financial Group, Inc. 2,400 200
BankAmerica Corp. 2,300 199
Banc One Corp. 3,500 196
Allstate Corp. 2,100 192
Loews Corp. 2,200 192
BankBoston Corp. 3,400 189
Nationwide Financial Services, Inc. 3,100 158
Union Planters Corp. 1,300 76
----------
8,291
Health Care 5.3%
Pharmacia & Upjohn, Inc. 13,700 632
American Home Products Corp. 7,700 398
Mallinckrodt Group, Inc. 12,300 365
HBO & Co. 8,200 289
Schering-Plough Corp. 3,100 284
Wellpoint Health Networks, Inc. (b) 3,700 274
Biomet, Inc. 8,200 271
Biogen, Inc. 5,500 270
Health Management Associates, Inc. `A' (b) 7,100 237
United Healthcare Corp. 3,300 210
Foundation Health Systems, Inc. `A' (b) 7,100 187
HEALTHSOUTH Corp. (b) 6,500 173
----------
3,590
Materials & Processing 3.0%
Union Carbide Corp. 8,000 427
USX-U.S. Steel Group, Inc. 11,800 389
Westvaco Corp. 13,500 381
USG Corp. (b) 7,000 379
Wellman, Inc. 13,100 297
Leggett & Platt, Inc. 7,700 193
----------
2,066
Technology 5.9%
Storage Technology Corp. (b) 16,600 720
International Business Machines Corp. 5,200 597
Harris Corp. 12,900 576
Adobe Systems, Inc. 8,500 361
BMC Software, Inc. (b) 6,000 312
Cisco Systems, Inc. (b) 3,350 308
Xerox Corp. 2,700 274
Cadence Design Systems, Inc. (b) 8,000 250
Computer Associates International, Inc. 4,300 239
Dell Computer Corp. (b) 2,400 223
Tektronix, Inc. 5,100 180
----------
4,040
Transportation 1.7%
UAL Corp. (b) 4,000 312
Continental Airlines, Inc. `B' (b) 4,000 244
U.S. Airways Group, Inc. (b) 3,000 238
Delta Air Lines, Inc. 1,600 207
FDX Corp. (b) 2,900 182
----------
1,183
54 PIMCO Funds See accompanying notes
<PAGE>
Value
Shares (000s)
- --------------------------------------------------------------------------------
Utilities 3.0%
DTE Energy Co. 13,800 $ 557
Public Service Enterprise Group, Inc. 16,100 554
NICOR, Inc. 13,600 546
Consolidated Edison, Inc. 4,500 207
Ameritech Corp. 4,400 197
----------
2,061
----------
Total Common Stocks 38,567
(Cost $32,764) ==========
- --------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES 10.7%
- --------------------------------------------------------------------------------
Principal
Amount
(000s)
Banking and Finance 5.2%
AT&T Capital Corp.
6.050% due 04/01/99 $ 500 500
Ford Motor Credit Corp.
5.838% due 10/15/02 1,000 1,001
New England Educational Loan Marketing
5.858% due 06/11/01 2,000 2,002
----------
3,503
Industrials 2.2%
AMR Corp.
10.000% due 02/01/01 400 437
9.430% due 05/10/01 1,000 1,085
----------
1,522
Utilities 3.3%
Long Island Lighting Co.
9.000% due 11/01/22 2,000 2,283
----------
Total Corporate Bonds and Notes 7,308
(Cost $6,912) ==========
- --------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES 29.0%
- --------------------------------------------------------------------------------
Collateralized Mortgage Obligations 1.9%
Federal Home Loan Mortgage Corp.
10.150% due 04/15/06 25 25
Federal National Mortgage Assn.
9.500% due 06/25/18 397 420
Independent National Mortgage Corp.
8.140% due 11/25/24 341 352
8.200% due 11/25/24 511 524
----------
1,321
Federal Home Loan Mortgage Corporation 12.5%
6.500% due 07/14/28-08/13/28 (E) 8,000 7,976
8.500% due 03/01/23 517 548
----------
8,524
Federal Housing Administration 0.9%
7.000% due 07/01/14 569 602
Federal National Mortgage Association 6.1%
7.814% due 12/01/23 (D) 346 358
8.500% due 03/01/25-01/01/08 (e) 3,644 3,800
----------
4,158
Government National Mortgage Association 6.4%
6.500% due 01/15/24-08/19/28 (e) 1,381 1,379
7.000% due 08/20/24 625 638
7.375% due 04/20/23 (d) 1,286 1,321
7.500% due 05/15/17 12 12
8.000% due 09/15/16-11/15/26 (e) 522 542
9.500% due 09/15/09-10/15/09 (e) 114 123
10.750% due 09/15/00-10/15/00 (e) 83 86
16.000% due 10/15/11-04/15/12 (e) 199 246
----------
4,347
Other Mortgage-Backed Securities 1.2%
Home Savings of America
5.890% due 05/25/27 840 820
----------
Total Mortgage-Backed Securities 19,772
(Cost $19,583) ==========
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES 1.5%
- --------------------------------------------------------------------------------
MBNA Master Credit Card Trust
5.591% due 01/15/02 $ 1,000 $ 1,002
----------
Total Asset-Backed Securities 1,002
(Cost $997) ==========
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 12.3%
- --------------------------------------------------------------------------------
Commercial Paper 7.2%
Abbott Laboratories
5.510% due 07/16/98 1,000 998
E.I. Du Pont de Nemours
5.490% due 07/10/98 1,000 999
General Electric Capital Corp.
5.510% due 07/22/98 100 100
General Motors Acceptance Corp.
5.620% due 07/15/98 200 200
IBM Credit Corp.
5.500% due 07/15/98 800 798
National Rural Utilities Cooperative
5.500% due 09/08/98 600 594
5.510% due 08/20/98 400 397
New Center Asset Trust
5.550% due 08/20/98 800 794
----------
4,880
Repurchase Agreement 4.9%
State Street Bank
4.250% due 07/01/98 3,363 3,363
(Dated 06/30/98. Collateralized by
U.S. Treasury Bond 7.875% 11/15/07
Valued at $2,038,182 and U.S. Treasury
Note 7.250% 05/15/16 valued at $1,403,939
Repurchase Proceeds are $3,363,397.)
U.S. Treasury Bills (c) 0.2%
4.990% due 10/15/98 140 138
----------
Total Short-Term Instruments 8,381
(Cost $8,381) ==========
Total Investments (a) 109.9% $ 75,030
(Cost $68,637)
Other Assets and Liabilities (9.9%) (6,776)
----------
Net Assets 100.0% $ 68,254
==========
Notes to Schedule of Investments (amounts in thousands):
(a) At June 30, 1998, the net unrealized appreciation
(depreciation) of investments based on cost for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there was an excess of value over
tax cost $ 7,099
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value (834)
----------
Unrealized appreciation-net $ 6,265
==========
(b) Non-income producing security.
(c) Securities with an aggregate market value of $138
have been segregated with the custodian to cover margin
requirements for the following open futures contracts at
June 30, 1998:
Unrealized
Type Contracts Appreciation
- ---- --------- ------------
U.S. Treasury 10 Year Note 9 $ 6
U.S. Treasury 30 Year Bond 61 101
----------
$ 107
==========
(d) Variable rate security.
(e) Securities are grouped by coupon and represent a range of maturities.
1998 Annual Report See accompanying notes 55
<PAGE>
Notes to Financial Statements
June 30, 1998
1. Organization
PIMCO Funds: Multi-Manager Series (the "Trust") is registered under the
Investment Company Act of 1940, as amended, as an open-end management
investment company organized as a Massachusetts business trust. The Trust
currently consists of twenty three separate investment funds (the "Funds").
The Trust may offer up to six classes of shares: Institutional,
Administrative, A, B, C and D. Each share class has identical voting rights
(except shareholders of a class that have exclusive voting rights regarding
any matter relating solely to that class of shares). The Structured
Emerging Markets and Tax-Efficient Structured Emerging Markets Funds had
not commenced operations as of June 30, 1998. Information presented in
these financial statements pertains to the Institutional and Administrative
Classes (the "Institutional Classes") of the Trust. Certain detail
financial information for the A, B, C and D Classes (the "Other Classes")
is provided separately and is available upon request.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently
followed by the Trust in preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from those estimates.
Security Valuation. Portfolio securities and other financial instruments
for which market quotations are readily available are stated at market
value. Market value is determined on the basis of last reported sales
prices, or if no sales are reported, as is the case for most securities
traded over-the-counter, 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
are valued at amortized cost, which approximates market value. Certain
fixed income securities for which daily market quotations are not readily
available may be valued, pursuant to guidelines established by the Board of
Trustees, with reference to fixed income securities whose prices are more
readily obtainable.
Securities Transactions and Investment Income. Securities transactions are
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 are recorded
on the identified cost basis. Dividend income is recorded on the
ex-dividend date, except certain dividends from foreign securities where
the ex-dividend date may have passed, are recorded as soon as the Fund is
informed of the ex-dividend date. Interest income, adjusted for the
accretion of discounts and amortization of premiums, is recorded on the
accrual basis.
Foreign Currency. Foreign currencies, investments, and other assets and
liabilities are translated into U.S. dollars at the exchange rates
prevailing at the end of the period. Fluctuations in the value of these
assets and liabilities resulting from changes in exchange rates are
recorded as unrealized foreign currency gains (losses). Realized gains
(losses) and unrealized appreciation (depreciation) on investment
securities and income and expenses are translated on the respective dates
of such transactions. The effect of changes in foreign currency exchange
rates on investments in securities are not segregated in the Statement of
Operations from the effects of changes in market prices of those
securities, but are included with the net realized and unrealized gain or
loss on investment securities.
56 PIMCO Funds
<PAGE>
Dividends and Distributions to Shareholders. Dividends from net investment
income, if any, are declared and paid quarterly to shareholders of record
by the Equity Income, Value, Renaissance and Balanced Funds. Dividends from
net investment income, if any, are declared and paid at least annually to
shareholders of record by the other Funds. Net long-term capital gains
earned by a Fund, if any, will be distributed no less frequently than once
each year.
Income dividends and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally
accepted accounting principles. These differences are primarily due to
differing treatments for such items as wash sales, foreign currency
transactions, net operating losses and capital loss carryforwards. Certain
amounts have been reclassified between undistributed net investment income,
accumulated undistributed net realized gains or losses and paid in capital
to more appropriately conform financial accounting and tax
characterizations of dividend distributions.
Multiclass Operations. Each class offered by the Trust has equal rights as
to assets. Income, non-class specific expenses, and realized and unrealized
capital gains and losses are allocated to each class of shares based on the
relative net assets of each class.
Federal Income Taxes. Each Fund intends to qualify as a regulated
investment company and distribute all of its taxable income and net
realized gains, if applicable, to shareholders. Accordingly, no provision
for Federal income taxes has been made.
Foreign Taxes on Dividends. Dividend income in the Statement of Operations
is shown net of foreign taxes withheld on dividends from foreign
securities. Foreign taxes withheld were as follows: Emerging Markets Fund -
$54,600; International Developed Fund - $203,465; Mid-Cap Growth Fund -
$6,930; Renaissance Fund - $40,871; Core Equity Fund - $817; Mid-Cap Equity
Fund - $9; Equity Income Fund - $6,396; Value Fund - $12,048; Small-Cap
Value Fund - $3,221; Enhanced Equity Fund - $2,912; and Balanced Fund -
$4,329.
Futures and Options. Certain Funds are authorized to enter into futures
contracts and options. A Fund may use futures contracts to manage its
exposure to the markets or to movements in interest rates and currency
values. The primary risks associated with the use of futures contracts and
options are imperfect correlation between the change in market value of the
securities held by a Fund and the prices of futures contracts and options,
the possibility of an illiquid market, and the inability of the
counterparty to meet the terms of the contract. Futures contracts and
purchased options are valued based upon their quoted daily settlement
prices. The premium received for a written option is recorded as an asset
with an equal liability which is marked to market based on the option's
quoted daily settlement price. Fluctuations in the value of such
instruments are recorded as unrealized appreciation (depreciation) until
terminated, at which time realized gains and losses are recognized.
Forward Currency Transactions. Certain Funds are authorized to enter into
forward foreign exchange contracts for the purpose of hedging against
foreign exchange risk arising from the Fund's investment or anticipated
investment in securities denominated in foreign currencies. A Fund may also
enter into these contracts for purposes of increasing exposure to a foreign
currency or to shift exposure to foreign currency fluctuations from one
country to another. All commitments are marked to market daily at the
applicable translation rates and any resulting unrealized gains or losses
are recorded. Realized gains or losses are recorded at the time the forward
contract matures or by delivery of the currency. Risks may arise upon
entering these contracts from the potential inability of counterparties to
meet the terms of their contracts and from unanticipated movements in the
value of a foreign currency relative to the U.S. dollar.
1998 Annual Report 57
<PAGE>
Notes to Financial Statements (Cont.)
June 30, 1998
Repurchase Agreements. Each Fund may engage in repurchase transactions.
Under the terms of a typical repurchase agreement, the Fund takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Fund to resell, the obligation at an
agreed-upon price and time. The market value of the collateral must be
equal at all times to the total amount of the repurchase obligations,
including interest. Generally, in the event of counterparty default, the
Fund has the right to use the collateral to offset losses incurred.
3. Fees, Expenses, and Related Party Transactions
Investment Advisory Fee. PIMCO Advisors L.P. ("PIMCO Advisors") serves as
investment advisor to the Trust, pursuant to an Investment Advisory
Agreement. PIMCO Advisors receives from the Trust a fee based on an annual
percentage of the average daily net assets of each Fund as follows: 0.57%
for the Core Equity Fund; 0.60% for the International Developed,
Renaissance and Small-Cap Value Funds; 0.63% for the Mid-Cap Equity Fund;
0.85% for the International Growth and Emerging Markets Funds; 1.00% for
the Small-Cap Growth Fund; 1.25% for the Micro-Cap Growth Fund; and 0.45%
for all other Funds. Each of the Funds also has a sub-advisor which, under
the supervision of PIMCO Advisors, directs the investments of the Fund's
assets. All of the sub-advisors are affiliates of PIMCO Advisors. The
advisory fees received by PIMCO Advisors are paid in all or in part to each
of the sub-advisors in accordance with the portfolio management agreements.
Administration Fee. PIMCO Advisors provides administrative services to the
Trust for which it receives from each Fund a monthly administrative fee
based on each share class's average daily net assets. The Administration
Fee for the Institutional and Administrative Classes is charged at the
annual rate of 0.50% for the International Growth, Emerging Markets and
International Developed Funds and 0.25% for all other Funds. The
Administration Fee for the A, B and C Classes is charged at the annual rate
of 0.65% for the International Growth, Emerging Markets and International
Developed Funds; and 0.40% for all other Funds. The Administration Fee for
Class D is charged at the annual rate of 0.40%.
Distribution and Servicing Fees. PIMCO Funds Distributors LLC ("PFD"),
formerly PIMCO Funds Distribution Company, a wholly-owned subsidiary of
PIMCO Advisors serves as the distributor of the Trust's shares.
The Trust is permitted to reimburse out of the Administrative Class assets
of each Fund, in an amount up to 0.25% on an annual basis of the average
daily net assets of that class, financial intermediaries that provide
services in connection with the distribution of shares or administration of
plans or programs that use Fund shares as their funding medium. The
effective rate paid to PFD was 0.25% during the current fiscal year.
Pursuant to the Distribution and Servicing Plans adopted by the A, B, C and
D Classes of the Trust, the Trust compensates PFD or an affiliate with
respect to Class D for services provided and expenses incurred in
connection with assistance rendered in the sale of shares and services
rendered to shareholders and for maintenance of shareholder accounts of the
A, B, C and D Classes. The Trust paid PFD distribution and servicing fees
at an effective rate as set forth below (calculated as a percentage of
each Fund's average daily net assets attributable to each class):
Distribution Fee (%) Servicing Fee (%)
- --------------------------------------------------------------------------------
Class A
All Funds -- 0.25
Class B
All Funds 0.75 0.25
Class C
All Funds 0.75 0.25
Class D
All Funds -- 0.25
58 PIMCO Funds
<PAGE>
PFD also receives the proceeds of the initial sales charges paid by the
shareholders upon the purchase of Class A shares and the contingent deferred
sales charges paid by the shareholders upon certain redemptions of Class A, B
and C shares. For the period ended June 30, 1998, PFD received $3,914,445
representing commissions (sales charges) and contingent deferred sales charges.
Expenses. The Trust is also responsible for the following expenses: (i) salaries
and other compensation of any of the Trust's executive officers and employees
who are not officers, directors, stockholders or employees of PIMCO Advisors,
PIMCO, or its subsidiaries or affiliates; (ii) taxes and governmental fees;
(iii) brokerage fees and commissions and other portfolio transaction expenses;
(iv) the cost of borrowing money, including interest expenses; (v) fees and
expenses of the Trustees who are not "interested persons" of the Advisor, PIMCO,
Portfolio Managers, or the Trust, and any counsel retained exclusively for their
benefit; (vi) extraordinary expenses, including costs of litigation and
indemnification expenses; (vii) expenses such as organizational expenses, which
are capitalized in accordance with generally accepted accounting principles; and
(viii) any expenses allocated or allocable to a specific class of shares, which
include distribution and service fees payable with respect to certain share
classes and may include certain other expenses as permitted by the Trust's
Multiple Class Plan adopted pursuant to Rule 18f-3 under the Investment Company
Act of 1940 and subject to review and approval by the Trustees. The ratio of
expenses to average net assets, as disclosed in the Financial Highlights, may
differ from the annual fund operating expenses as disclosed in the Prospectus
for the reasons set forth above.
Each unaffiliated Trustee receives an annual retainer of $45,000, plus
$2,000 for each Board of Trustees meeting attended, and $500 for each Audit and
Performance Committee meeting attended, plus reimbursement of related expenses.
Each Audit and Performance Committee member receives an additional annual
retainer of $1,000, the Chairman of the Audit and Performance Committee receives
an additional annual retainer of $2,000, the Chairman of the Independent
Trustees receives an additional annual retainer of $6,000, and each Vice
Chairman of the Board receives an additional annual retainer of $3,000. These
expenses are allocated to the Funds of the Trust according to their respective
net assets.
4. Purchases and Sales of Securities
Purchases and sales of securities (excluding short-term investments) for the
period ended June 30, 1998 were as follows (amounts in thousands):
<TABLE>
<CAPTION>
U.S. Government/Agency All Other
--------------------------------------------------------
Purchases Sales Purchases Sales
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Emerging Markets Fund $ 20,179 $ 32,657
International Developed Fund 62,862 58,330
Capital Appreciation Fund 879,186 566,842
Mid-Cap Growth Fund 637,096 360,640
Micro-Cap Growth Fund 177,805 144,676
Small-Cap Growth Fund 34,995 30,073
International Growth Fund 9,232 4,300
Renaissance 1,093,485 966,292
Core Equity Fund 151,601 96,460
Mid-Cap Equity Fund 21,678 21,456
Equity Income Fund 108,839 76,245
Value Fund 188,181 158,285
Small-Cap Value Fund 348,329 88,320
Enhanced Equity Fund 28,298 39,073
Balanced Fund $85,657 $81,267 37,940 47,365
</TABLE>
1998 Annual Report 59
<PAGE>
Notes to Financial Statements (Cont.)
June 30, 1998
5. Shares of Beneficial Interest
The Trust may issue an unlimited number of shares of beneficial interest with a
$.0001 par value. Changes in shares of beneficial interest were as follows
(shares and amounts in thousands):
<TABLE>
<CAPTION>
Emerging Markets Fund
-------------------------------------------------
Year Ended 6/30/98 Year Ended 6/30/97
Shares Amount Shares Amount
-------------------------------------------------
<S> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 1,946 $ 23,187 1,007 $ 12,784
- --------------------------------------------------------------------------------------------
Administrative Class 141 1,685 26 305
- --------------------------------------------------------------------------------------------
Other Classes 361 4,265 197 2,597
- --------------------------------------------------------------------------------------------
Shares issued in reorganization
Other Classes 0 0 0 0
- --------------------------------------------------------------------------------------------
Issued as reinvestment of distributions
Institutional Class 0 0 19 222
- --------------------------------------------------------------------------------------------
Administrative Class 0 0 0 0
- --------------------------------------------------------------------------------------------
Other Classes 0 0 0 0
- --------------------------------------------------------------------------------------------
Cost of shares redeemed
Institutional Class (3,341) (39,014) (3,613) (45,330)
- --------------------------------------------------------------------------------------------
Administrative Class (17) (199) (46) (553)
- --------------------------------------------------------------------------------------------
Other Classes (333) (3,896) (27) (360)
- --------------------------------------------------------------------------------------------
Net increase resulting from
Fund share transactions (1,243) $(13,972) (2,437) $(30,335)
============================================================================================
<CAPTION>
International Developed Fund
----------------------------------------------------
Year Ended 6/30/98 Year Ended 6/30/97
Shares Amount Shares Amount
----------------------------------------------------
<S> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 5,097 $ 66,712 3,568 $ 43,648
- ---------------------------------------------------------------------------------------------
Administrative Class 434 5,786 140 1,683
- ---------------------------------------------------------------------------------------------
Other Classes 4,888 66,482 354 4,293
- ---------------------------------------------------------------------------------------------
Shares issued in reorganization
Other Classes 0 0 0 0
- ---------------------------------------------------------------------------------------------
Issued as reinvestment of distributions
Institutional Class 367 4,242 296 3,449
- ---------------------------------------------------------------------------------------------
Administrative Class 8 98 22 255
- ---------------------------------------------------------------------------------------------
Other Classes 25 285 0 0
- ---------------------------------------------------------------------------------------------
Cost of shares redeemed
Institutional Class (4,103) (54,800) (2,294) (27,613)
- ---------------------------------------------------------------------------------------------
Administrative Class (178) (2,245) (435) (5,453)
- ---------------------------------------------------------------------------------------------
Other Classes (4,488) (61,921) (51) (637)
- ---------------------------------------------------------------------------------------------
Net increase resulting from
Fund share transactions 2,050 $ 24,639 1,600 $ 19,625
=============================================================================================
<CAPTION>
Capital Appreciation Fund
-------------------------------------------------
Year Ended 6/30/98 Year Ended 6/30/97
Shares Amount Shares Amount
-------------------------------------------------
<S> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 10,851 $ 261,189 8,723 $ 165,774
- --------------------------------------------------------------------------------------------
Administrative Class 5,609 134,100 157 3,111
- --------------------------------------------------------------------------------------------
Other Classes 6,924 165,130 1,150 22,411
- --------------------------------------------------------------------------------------------
Shares issued in reorganization
Other Classes 0 0 0 0
- --------------------------------------------------------------------------------------------
Issued as reinvestment of distributions
Institutional Class 1,599 37,066 2,018 36,552
- --------------------------------------------------------------------------------------------
Administrative Class 85 1,973 8 136
- --------------------------------------------------------------------------------------------
Other Classes 176 4,064 0 0
- --------------------------------------------------------------------------------------------
Cost of shares redeemed
Institutional Class (6,904) (164,429) (4,708) (90,177)
- --------------------------------------------------------------------------------------------
Administrative Class (748) (18,481) (17) (349)
- --------------------------------------------------------------------------------------------
Other Classes (1,007) (24,147) (77) (1,587)
- --------------------------------------------------------------------------------------------
Net increase resulting from
Fund share transactions 16,585 $ 396,465 7,254 $ 135,871
============================================================================================
</TABLE>
<TABLE>
<CAPTION>
International
Growth Fund Core Equity Fund
------------------- -----------------------------------------------
Period from
December 31, 1997
to June 30 1998 Year Ended 6/30/97 Year Ended 6/30/97
Shares Amount Shares Amount Shares Amount
------------------- -----------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 504 $ 5,044 60 $ 998 116 $ 1,642
- --------------------------------------------------------------- -----------------------------------------------
Administrative Class 0 0 5,068 87,923 671 9,341
- --------------------------------------------------------------- -----------------------------------------------
Other Classes 0 0 0 0 0 0
- --------------------------------------------------------------- -----------------------------------------------
Shares issued in reorganization
Other Classes 0 0 0 0 0 0
- --------------------------------------------------------------- -----------------------------------------------
Issued as reinvestment of distributions
Institutional Class 0 0 19 308 21 286
- --------------------------------------------------------------- -----------------------------------------------
Administrative Class 0 0 455 7,237 137 1,878
- --------------------------------------------------------------- -----------------------------------------------
Other Classes 0 0 0 0 0 0
- --------------------------------------------------------------- -----------------------------------------------
Cost of shares redeemed
Institutional Class 0 0 (400) (6,755) (493) (6,861)
- --------------------------------------------------------------- -----------------------------------------------
Administrative Class 0 0 (1,077) (18,798) (1,397) (19,716)
- --------------------------------------------------------------- -----------------------------------------------
Other Classes 0 0 0 0 0 0
- --------------------------------------------------------------- -----------------------------------------------
Net increase resulting from
Fund share transactions 504 $ 5,044 4,125 $ 70,913 (945) $(13,430)
=============================================================== ===============================================
<CAPTION>
Mid-Cap Equity Fund
--------------------------------------------
Year Ended 6/30/98 Year Ended 6/30/97
Shares Amount Shares Amount
--------------------------------------------
<S> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 142 $ 1,655 42 $ 575
- ----------------------------------------------------------------------------------------
Administrative Class 170 2,245 0 0
- ----------------------------------------------------------------------------------------
Other Classes 0 0 0 0
- ----------------------------------------------------------------------------------------
Shares issued in reorganization
Other Classes 0 0 0 0
- ----------------------------------------------------------------------------------------
Issued as reinvestment of distributions
Institutional Class 53 618 20 262
- ----------------------------------------------------------------------------------------
Administrative Class 12 138 0 0
- ----------------------------------------------------------------------------------------
Other Classes 0 0 0 0
- ----------------------------------------------------------------------------------------
Cost of shares redeemed
Institutional Class (109) (1,428) (92) (1,218)
- ----------------------------------------------------------------------------------------
Administrative Class (6) (80) 0 0
- ----------------------------------------------------------------------------------------
Other Classes 0 0 0 0
- ----------------------------------------------------------------------------------------
Net increase resulting from
Fund share transactions 262 $ 3,148 (30) $ (381)
========================================================================================
<CAPTION>
Equity Income Fund
--------------------------------------------
Year Ended 6/30/98 Year Ended 6/30/97
Shares Amount Shares Amount
--------------------------------------------
<S> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 1,001 $ 16,221 1,004 $ 14,387
- ----------------------------------------------------------------------------------------
Administrative Class 253 4,124 142 2,032
- ----------------------------------------------------------------------------------------
Other Classes 2,755 44,411 819 11,794
- ----------------------------------------------------------------------------------------
Shares issued in reorganization
Other Classes 0 0 0 0
- ----------------------------------------------------------------------------------------
Issued as reinvestment of distributions
Institutional Class 1,266 19,487 1,299 17,796
- ----------------------------------------------------------------------------------------
Administrative Class 93 1,437 80 1,101
- ----------------------------------------------------------------------------------------
Other Classes 234 3,576 5 71
- ----------------------------------------------------------------------------------------
Cost of shares redeemed
Institutional Class (1,511) (24,500) (2,573) (37,514)
- ----------------------------------------------------------------------------------------
Administrative Class (148) (2,429) (118) (1,690)
- ----------------------------------------------------------------------------------------
Other Classes (492) (7,993) (112) (1,638)
- ----------------------------------------------------------------------------------------
Net increase resulting from
Fund share transactions 3,451 $ 54,334 546 $ 6,339
========================================================================================
</TABLE>
60 PIMCO Funds
<PAGE>
<TABLE>
<CAPTION>
Mid-Cap Growth Fund Micro-Cap Growth Fund
-------------------------------------------- -------------------------------------------
Year Ended 6/30/98 Year Ended 6/30/97 Year Ended 6/30/98 Year Ended 6/30/97
Shares Amount Shares Amount Shares Amount Shares Amount
-------------------------------------------- -------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class $ 11,844 $ 273,380 3,798 $ 71,437 3,100 $ 69,180 4,050 $ 72,696
- -------------------------------------------------------------------------------------- -------------------------------------------
Administrative Class 3,327 77,781 47 878 181 4,130 135 2,434
- -------------------------------------------------------------------------------------- -------------------------------------------
Other Classes 10,834 249,617 1,202 10,914 0 0 0 0
- -------------------------------------------------------------------------------------- -------------------------------------------
Shares issued in reorganization
Other Classes 0 0 4,103 75,422 0 0 0 0
- -------------------------------------------------------------------------------------- -------------------------------------------
Issued as reinvestment of distributions
Institutional Class 975 22,222 2,481 42,923 910 19,223 572 9,931
- -------------------------------------------------------------------------------------- -------------------------------------------
Administrative Class 24 544 15 261 19 396 7 121
- -------------------------------------------------------------------------------------- -------------------------------------------
Other Classes 339 7,672 0 0 0 0 0 0
- -------------------------------------------------------------------------------------- -------------------------------------------
Cost of shares redeemed
Institutional Class (9,011) (208,995) (3,791) (72,699) (1,382) (31,187) (899) (15,697)
- -------------------------------------------------------------------------------------- -------------------------------------------
Administrative Class (381) (8,950) (15) (280) (104) (2,345) (66) (1,174)
- -------------------------------------------------------------------------------------- -------------------------------------------
Other Classes (3,985) (92,467) (640) (11,811) 0 0 0 0
- -------------------------------------------------------------------------------------- -------------------------------------------
Net increase resulting from
Fund share transactions 13,966 $ 320,804 7,200 $ 117,045 2,724 $ 59,397 3,799 $ 68,311
====================================================================================== ===========================================
<CAPTION>
Small-Cap Growth Fund Renaissance Fund
------------------------------------------- -------------------------------------------
Year Ended 6/30/98 Year Ended 6/30/97 Year Ended 6/30/98 Year Ended 6/30/97
Shares Amount Shares Amount Shares Amount Shares Amount
----------------------------------------- -------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 957 $ 13,396 688 $ 10,629 44 $ 761 0 $ 0
- -------------------------------------------------------------------------------------- -------------------------------------------
Administrative Class 81 1,166 0 1 0 0 0 0
- -------------------------------------------------------------------------------------- -------------------------------------------
Other Classes 0 0 0 0 25,025 464,673 9,568 151,393
- -------------------------------------------------------------------------------------- -------------------------------------------
Shares issued in reorganization
Other Classes 0 0 0 0 0 0 0 0
- -------------------------------------------------------------------------------------- -------------------------------------------
Issued as reinvestment of distributions
Institutional Class 360 4,781 1,056 12,306 0 0 0 0
- -------------------------------------------------------------------------------------- -------------------------------------------
Administrative Class 1 7 1 10 0 0 0 0
- -------------------------------------------------------------------------------------- -------------------------------------------
Other Classes 0 0 0 0 4,447 74,240 56 886
- -------------------------------------------------------------------------------------- -------------------------------------------
Cost of shares redeemed
Institutional Class (408) (5,918) (835) (11,800) 0 0 0 0
- -------------------------------------------------------------------------------------- -------------------------------------------
Administrative Class (12) (171) (6) (120) 0 0 0 0
- -------------------------------------------------------------------------------------- -------------------------------------------
Other Classes 0 0 0 0 (16,657) (311,714) (4,514) (72,275)
- -------------------------------------------------------------------------------------- -------------------------------------------
Net increase resulting from
Fund share transactions 979 $ 13,261 904 $ 11,026 12,859 $ 227,960 5,110 $ 80,004
====================================================================================== ===========================================
</TABLE>
<TABLE>
<CAPTION>
Value Fund Small-Cap Value Fund
------------------------------------------ -------------------------------------------
Year Ended 6/30/98 Year Ended 6/30/97 Year Ended 6/30/98 Year Ended 6/30/97
Shares Amount Shares Amount Shares Amount Shares Amount
------------------------------------------ -------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 1,109 $ 17,292 1,317 $ 17,251 2,482 $ 44,619 395 $ 5,653
- -------------------------------------------------------------------------------------- -------------------------------------------
Administrative Class 674 10,641 0 0 347 6,309 90 1,269
- -------------------------------------------------------------------------------------- -------------------------------------------
Other Classes 4,014 62,175 2,259 21,246 17,288 307,809 2,516 36,469
- -------------------------------------------------------------------------------------- -------------------------------------------
Shares issued in reorganization
Other Classes 0 0 5,988 80,835 0 0 0 0
- -------------------------------------------------------------------------------------- -------------------------------------------
Issued as reinvestment of distributions
Institutional Class 604 8,878 293 3,854 101 1,770 368 4,969
- -------------------------------------------------------------------------------------- -------------------------------------------
Administrative Class 33 483 0 0 24 427 55 741
- -------------------------------------------------------------------------------------- -------------------------------------------
Other Classes 841 12,266 29 406 393 6,863 0 0
- -------------------------------------------------------------------------------------- -------------------------------------------
Cost of shares redeemed
Institutional Class (1,437) (22,371) (803) (10,770) (2,095) (38,130) (612) (8,698)
- -------------------------------------------------------------------------------------- -------------------------------------------
Administrative Class (46) (725) 0 0 (137) (2,525) (82) (1,177)
- -------------------------------------------------------------------------------------- -------------------------------------------
Other Classes (2,636) (40,804) (1,167) (16,043) (2,005) (35,827) (80) (1,201)
- -------------------------------------------------------------------------------------- -------------------------------------------
Net increase resulting from
Fund share transactions 3,156 $ 47,835 7,916 $ 96,779 16,398 $ 291,315 2,650 $ 38,025
====================================================================================== ===========================================
<CAPTION>
Enhanced Equity Fund Balanced Fund
-------------------------------------------- -------------------------------------------
Year Ended 6/30/98 Year Ended 6/30/97 Year Ended 6/30/98 Year Ended 6/30/97
Shares Amount Shares Amount Shares Amount Shares Amount
-------------------------------------------- -------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 394 $ 4,869 761 $ 11,801 504 $ 5,975 926 $ 10,421
- -------------------------------------------------------------------------------------- -------------------------------------------
Administrative Class 760 9,937 0 0 0 0 0 0
- -------------------------------------------------------------------------------------- -------------------------------------------
Other Classes 0 0 0 0 2,189 26,009 223 2,436
- -------------------------------------------------------------------------------------- -------------------------------------------
Shares issued in reorganization
Other Classes 0 0 0 0 0 0 0 0
- -------------------------------------------------------------------------------------- -------------------------------------------
Issued as reinvestment of distributions
Institutional Class 1,579 17,291 1,245 17,302 567 6,512 1,158 12,237
- -------------------------------------------------------------------------------------- -------------------------------------------
Administrative Class 109 1,196 0 0 0 0 0 0
- -------------------------------------------------------------------------------------- -------------------------------------------
Other Classes 0 0 0 0 111 1,271 2 19
- -------------------------------------------------------------------------------------- -------------------------------------------
Cost of shares redeemed
Institutional Class (1,803) (24,666) (4,525) (67,468) (3,066) (36,139) (3,794) (43,185)
- -------------------------------------------------------------------------------------- -------------------------------------------
Administrative Class (43) (517) 0 0 0 0 0 0
- -------------------------------------------------------------------------------------- -------------------------------------------
Other Classes 0 0 0 0 (275) (3,224) (12) (138)
- -------------------------------------------------------------------------------------- -------------------------------------------
Net increase resulting from
Fund share transactions 996 $ 8,110 (2,519) $ (38,365) 30 $ 404 (1,497) $(18,210)
===================================================================================================================================
</TABLE>
1998 Annual Report 61
<PAGE>
Notes to Financial Statements (Cont.)
June 30, 1998
6. Transactions in Written Call and Put Options
Transactions in written call and put options were as follows (amounts in
thousands):
Renaissance Fund Core Equity Fund
-------------------------------------------------
Premium Contracts Premium Contracts
-------------------------------------------------
Balance at 06/30/97 $ 0 0 $ 0 0
Sales 271 1,130 215 744
Closing Buys (139) (500) (161) (571)
Expirations 0 0 (35) (114)
Exercised 0 0 (19) (59)
-------------------------------------------------
Balance at 06/30/98 $ 132 630 $ 0 0
=================================================
7. Federal Income Tax Matters
As of June 30, 1998, the Fund listed in the table below had remaining
capital loss carryforwards that were realized in current and prior years.
Additionally, the Emerging Markets Fund realized foreign currency losses,
in the amount of $3,263, during the period November 1, 1997 through June
30, 1998, which the Fund elected to defer to the following fiscal year
pursuant to income tax regulations.
The Fund will resume capital gain distributions in the future to the
extent gains are realized in excess of the available carryforwards (amounts
in thousands):
Capital Loss Carryforwards
-------------------------------------------------
Realized Losses Expiration
------------------------------------------------
Emerging Markets Fund $ 10,098 06/30/03
3,074 06/30/06
62 PIMCO Funds
<PAGE>
Report of Independent Accountants
To the Trustees and Institutional and Administrative Shareholders of the PIMCO
Funds: Multi-Manager Series
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights of the Institutional and
Administrative share classes present fairly, in all material respects, the
financial position of the Emerging Markets Fund, International Developed Fund,
Capital Appreciation Fund, Mid-Cap Growth Fund, Micro-Cap Growth Fund, Small-Cap
Growth Fund, International Growth Fund, Renaissance Fund, Core Equity Fund,
Mid-Cap Equity Fund, Equity Income Fund, Value Fund, Small-Cap Value Fund,
Enhanced Equity Fund and Balanced Fund (hereafter referred to as the "Funds") at
June 30, 1998, the results of each of their operations for the year then ended,
the changes in each of their net assets and the financial highlights of the
Institutional and Administrative share classes for each of the periods
indicated, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at June
30, 1998 by correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Kansas City, Missouri
August 17, 1998
1998 Annual Report 63
<PAGE>
Federal Income Tax Information (unaudited)
For the benefit of corporate shareholders only, the portion of dividends
paid out of ordinary income earned during certain Funds' fiscal year ended
June 30, 1998 which qualify for the corporate dividend-received deduction
are as follows:
Capital Appreciation Fund 55.27%
Mid-Cap Growth Fund 60.37%
Micro-Cap Growth Fund 14.52%
Small-Cap Growth Fund 60.83%
Renaissance Fund 9.64%
Core Equity Fund 15.08%
Mid-Cap Equity Fund 3.07%
Equity Income Fund 61.03%
Value Fund 40.22%
Small-Cap Value Fund 46.39%
Enhanced Equity Fund 30.24%
Balanced Fund 13.06%
Shareholders are advised to consult their own tax advisor 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 1999, 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 1998.
Capital gains distributions paid for all classes of shares during the
fiscal year ended June 30, 1998 were in the amounts as follows:
Per Share Per Share Per Share
Long-Term Mid-Term Short-Term
Capital Gains Capital Gains Capital Gains
---------------------------------------------------------------------------
International Developed Fund $0.31639 $0.13536 $0.12560
Capital Appreciation Fund 0.33697 0.88125 0.46474
Mid-Cap Growth Fund 0.42243 0.57661 0.32831
Micro-Cap Growth Fund 0.90283 0.72553 0.98671
Small-Cap Growth Fund 0.21540 0.90869 0.75462
Core Equity Fund 0.11840 0.68872 0.49486
Mid-Cap Equity Fund 0.20433 1.36654 2.52162
Equity Income Fund 0.58649 1.17818 0.32500
Value Fund 0.38568 0.48842 0.75502
Small-Cap Value Fund 0.26913 0.17979 0.31102
Enhanced Equity Fund 1.60738 4.51293 1.61207
Balanced Fund 0.07278 0.37007 0.64224
64 PIMCO Funds
<PAGE>
PIMCO Advisors Holdings L.P. is the nation's fourth largest publicly traded
investment management firm with assets under management in excess of $229
billion. Comprised of seven independent investment firms, PIMCO Advisors is
recognized for providing consistent performance and high-quality service to
mutual fund and institutional clients worldwide.
The seven affiliated firms are:
Pacific Investment Management Company/Newport Beach, California
Oppenheimer Capital/New York, New York
Columbus Circle Investors/Stamford, Connecticut
Cadence Capital Management/Boston, Massachusetts
NFJ Investment Group/Dallas, Texas
Parametric Portfolio Associates/Seattle, Washington
Blairlogie Capital Management/Edinburgh, Scotland
Units of PIMCO Advisors Holdings L.P. trade on the New York Stock Exchange under
the ticker symbol "PA."
Trustees and Officers
William D. Cvengros, Chairman and Trustee
Stephen J. Treadway, President, Chief Executive Officer and Trustee
E. Philip Cannon, Trustee
Donald P. Carter, Trustee
Gary A. Childress, Trustee
Richard L. Nelson, Trustee
Lyman W. Porter, Trustee
Alan Richards, Trustee
Dr. Joel Segall, Trustee
W. Bryant Stooks, Trustee
Gerald M. Thorne, Trustee
Newton B. Schott, Jr., Secretary
John P. Hardaway, Treasurer
Investment Advisor and Administrator
PIMCO Advisors L.P.
800 Newport Center Drive, Suite 600
Newport Beach, California 92660
Custodian
Investors Fiduciary Trust Company
801 Pennsylvania
Kansas City, Missouri 64105
Transfer Agent
Investors Fiduciary Trust Company
1004 Baltimore
Kansas City, Missouri 64105
Counsel
Ropes & Gray
One International Place
Boston, Massachusetts 02110
Independent Accountants
PricewaterhouseCoopers LLP
1055 Broadway
Kansas City, Missouri 64105
<PAGE>
This report is submitted for the general information of the shareholders
of the PIMCO Funds. It is not authorized for distribution to prospective
investors unless accompanied or preceded by an effective prospectus for the
PIMCO Funds, which contains information covering its investment policies as well
as other pertinent information.
[LOGO OF PIMCO FUNDS APPEARS HERE]
840 NEWPORT CENTER DRIVE,
SUITE 300
NEWPORT BEACH, CA 92660
800.927.4648
