<PAGE>
PIMCO
- -------------
FUNDS
-------
MULTI-MANAGER SERIES
SEMIANNUAL REPORT
DECEMBER 31, 1997
EMERGING MARKETS INTERNATIONAL DEVELOPED CORE EQUITY EMERGING MARKETS MID CAP
GROWTH VALUE BALANCED INTERNATIONAL DEVELOPED MICRO CAP GROWTH SMALL CAP GROWTH
CAPITAL APPRECIATION MID CAP GROWTH MID CAP EQUITY MICRO CAP GROWTH EQUITY
INCOME VALUE SMALL CAP VALUE SMALL CAP GROWTH ENHANCED EQUITY RENAISSANCE
BALANCED CORE EQUITY EMERGING MARKETS INTERNATIONAL DEVELOPED MID CAP EQUITY
EQUITY INCOME RENAISSANCE ENHANCED EQUITY BALANCED MID CAP GROWTH VALUE
INTERNATIONAL DEVELOPED CORE EQUITY SMALL CAP VALUE VALUE ENHANCED EQUITY
CAPITAL APPRECIATION BALANCED RENAISSANCE SMALL CAP GROWTH BALANCED EMERGING
MARKETS INTERNATIONAL DEVELOPED MICRO CAP GROWTH SMALL CAP VALUE ENHANCED EQUITY
<PAGE>
Contents
Chairman's Message...........................1
Market Review................................2
An Interview with David Breed................3
Financial Highlights........................18
Statement of Assets and Liabilities.........26
Statement of Operations.....................28
Statement of Changes in Net Assets..........30
Notes to Financial Statements...............55
Fund Schedule of
Summary Investments
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
Renaissance Fund...........................17 44
Core Equity Fund...........................10 45
Mid Cap Equity Fund........................11 46
Equity Income Fund.........................12 47
Value Fund.................................13 48
Small Cap Value Fund.......................14 49
Enhanced Equity Fund.......................15 51
Balanced Fund..............................16 53
<PAGE>
Chairman's Letter
Dear PIMCO Funds Shareholder:
The financial markets generated outstanding returns for investors in 1997. For
the one-year period ended December 31, 1997, the stock market, as measured by
the Standard & Poor's 500 Index of stocks, rose 33.4%. The overall bond market,
as measured by the Lehman Aggregate Bond Index, posted a 9.7% return.
Positive Market Conditions. The last twelve months have been an exciting time
for investors, as the value of many investment portfolios grew substantially.
However, the stock market provided more than its share of nervous moments. In
March, the overall stock market fell nearly 10%, based on unfounded fears of
rising inflation. Then, in reaction to the escalating financial crisis in
Southeast Asia, the Dow Jones Industrial Average fell 554 points on October
27th. But, as we have seen on so many occasions in recent years, investors
viewed the market declines as buying opportunities, and stock prices rebounded
sharply.
As we anticipated, bond yields fluctuated in a fairly narrow range in 1997. We
expect this trend to persist, should long-term interest rates remain between 5
and 7% through the year 2000. Given this environment, we believe bonds will
continue to post relatively strong returns in the coming years.
Looking Ahead. As we head into 1998, there are signs that the financial markets
could provide solid, but less spectacular returns. We are in the midst of an
economy that has grown at a steady pace, but not so fast that it has triggered
an increase in inflation. This phenomenon has been a major factor in the stock
and bond markets' ascent during the past several years.
However, it is highly unlikely that we will see a repeat of the recent dramatic
stock market gains. Historically, from 1926-1997, stocks have posted an annual
11% return, yet for the three-year period ended December 31, 1997, stocks have
risen 31% annually. As a result, going forward it will be important to
adequately diversify and maintain realistic expectations about your investments.
On the next page, you will find a more complete review of the stock and bond
markets, followed by a recent interview with David Breed, from the management
team of PIMCO Capital Appreciation and Mid Cap Growth Funds. We have also
provided an overview of Fund performance for the six-month period ended December
31, 1997, including specific market commentary.
As always, we appreciate the trust you have placed in us, and we will continue
to work hard to help you meet your investing needs. If you have any questions
regarding your investment, please contact your account manager or one of our
representatives at 1-800-927-4648, or visit our website at www.pimcofunds.com.
Sincerely,
/s/ William D. Cvengros
William D. Cvengros
Chairman of the Board
February 6, 1998
1997 Semiannual Report 1
<PAGE>
Market Review
The Stock Market
A Record-Breaking year
All told, 1997 was another outstanding year in the equity market. For the first
time in its history, the overall stock market posted annual back-to-back-to-back
20%+ returns. During that three-year period the market rose 125%--its best
cumulative performance since the 1933-1935 period.
Despite the largest single-day point drop in the Dow, stocks rebounded and
posted outstanding results in 1997.
[LINE GRAPH APPEARS HERE]
S&P 500 Index
-------------
748.03
759.5
776.17
770.52
786.16
789.56
808.48
801.77
790.82
804.97
793.17
784.1
773.88
757.9
737.65
766.34
765.37
812.97
824.78
829.75
847.03
848.28
858.01
893.27
898.7
887.3
916.92
938.79
947.14
933.54
900.81
923.54
899.47
929.05
923.91
950.51
945.22
965.03
966.98
944.16
941.64
914.62
927.51
928.35
963.09
955.4
983.79
953.39
946.78
936.46
1997 was largely known as the year of large-cap stocks, specifically the
largest 50 companies. For much of the year investors flocked to these highly
liquid, household names, as they looked for solace amid market volatility. The
exception occurred during the third quarter of 1997, as small- and mid-cap
stocks led the pack due to concerns that large-cap stocks were becoming
overvalued. However, when the Asian currency crisis escalated in the fourth
quarter, large-cap stocks were again the best performers, in particular stocks
of companies with minimal reliance on overseas business.
Aside from the historic bull run, the other noteworthy news has been
the market's volatility. During 1997, the market rose or fell more than one
percent from the previous day 32% of the time. That was more than double the
1996 level and triple that of 1995. Based on current market conditions there is
little indication that this volatility will subside in the near future.
The question on the minds of many investors is how much longer can the
stock market's ascent continue? When the bull market began in October 1990, the
Dow Jones Industrial Average stood at 2365. In July 1997, the Dow eclipsed 8000
and ended the year at 7908. During that seven year period the stock market has
only had one correction of over 10%--another record.
As we look ahead, we remain cautiously optimistic about the prospects for
the stock market. The optimism lies in the fact that the current environment is
positive and corporate profits, especially in companies with minimal exposure to
Asian markets, are generally healthy. However, if the Asian situation
intensifies and leads to disappointing corporate earnings, we could see a
reversal of fortune. Therefore, it's important for investors to ensure that
their portfolios are adequately diversified, and to maintain a long-term outlook
during periods of market volatility.
The Bond Market
A Strong Rebound Takes Place
In our report to shareholders six months ago, we stated that "the prospects for
the bond market are bright." At the time, our optimism may have looked like
wishful thinking. In March, the Federal Reserve Board had raised interest rates
1/4 of a percentage point as a preemptive strike against inflation. This caused
long-term interest rates to surge above 7.1% by the end of the first quarter of
1997.
After surging in early 1997 interest rates fell dramatically--causing bond
prices to rise.
[LINE GRAPH APPEARS HERE]
30 Year Treasury Rates
----------------------
6.734
6.848
6.825
6.893
6.792
6.706
6.527
6.645
6.805
6.816
6.944
6.971
7.09
7.126
7.169
7.056
7.145
6.877
6.893
6.9
6.989
6.908
6.776
6.726
6.663
6.744
6.629
6.531
6.532
6.456
6.456
6.636
6.548
6.651
6.612
6.643
6.588
6.379
6.368
6.295
6.431
6.44
6.274
6.154
6.156
6.114
6.034
6.055
6.085
5.926
5.923
5.901
However, our forecast was correct, as the bond market shook off its early-
year losses and rebounded dramatically. By the end of 1997, long-term interest
rates had plunged to 5.9%. Virtually every sector of the bond market
participated in the rally, led by high yield bonds.
There were several factors that contributed to the bond market's rebound,
including the strong U.S. dollar, signs of a slowing U.S. economy due to the
Asian financial crisis, low inflation, and a subsequent reduced threat of a
Federal Reserve interest rate hike. In addition, the volatility in the stock
market caused many investors to reallocate assets into bonds. This led to
positive supply-and-demand considerations for bonds.
Looking ahead, we believe that interest rates will continue to fall, but
not at the pace we have experienced in the past few months. Should the economy
experience a few quarters of sluggish 1% growth, the yield on long-term
Treasuries could drop to 5.5%. This would lead to strong returns in the bond
market, especially relative to the low inflationary environment we anticipate
going forward.
In terms of specific sectors of the market, we foresee attractive
opportunities in lower-coupon mortgage securities, provided that long-term
interest rates do not fall below 5.5%. Emerging market debt in selective
countries might also become attractive in 1998.
2 PIMCO Funds
<PAGE>
PIMCO Capital Appreciation and
Mid Cap Growth Funds [PHOTO OF DAVID BREED
APPEARS HERE]
David Breed
Despite the increased volatility in the stock market due to the crisis in
Southeast Asia, the mutual funds managed by PIMCO Advisors' Cadence Capital
Management continue to post outstanding results. While past performance is no
guarantee of future results, both the PIMCO Capital Appreciation and Mid Cap
Growth Funds have outperformed their respective indices over the 1-, 3-, 5-year
and since inception periods ended December 31, 1997. We spoke with David Breed,
Chief Investment Officer at Cadence, for an update on the Funds.
Q: What's the secret behind your Funds' outstanding performance records?
A: First, we follow a "growth-at-a-reasonable-price" investment strategy. In
other words, we look for strong growth companies, but we won't pay through
the nose to get them. Second, as primarily an institutional manager we
strictly adhere to our investment strategy. We simply will not jeopardize
our portfolios by following the latest hot industry or investment trend.
Q: Can you briefly describe your investment process?
A: Our investment strategy begins with taking a universe of roughly 4,000
stocks, and applying a systematic stock selection process. This helps us
rank each security by growth and price considerations, such as expected
earnings per share growth and price-to-earnings ratio. We then conduct
fundamental research to select about 400 companies we believe can sustain
their growth rates.
Q: When do you sell a stock?
A: Our decision to sell a stock is as disciplined as our decision to buy a
stock. To ensure adequate diversification we automatically trim holdings
that grow to more than 2% of a fund's portfolio. In addition, we
continually monitor and analyze our portfolios for holdings that we think
should be sold. We consider selling a stock when it shows declining
earnings expectations or announces a negative earnings surprise. A stock is
also sold when it reaches an excessive relative valuation, a practice that
has won praise from Morningstar for its tax efficiency.
Q: Can you explain how selling certain stocks results in tax efficiency?
A: We help to offset realized capital gains by quickly selling off holdings
that are underperforming. This reduces the amount of taxable capital gains
distributions, and has helped to improve our funds' after-tax return
potential.
Q: How are you positioning the Capital Appreciation Fund given the high
valuations in the large-cap market?
A: We have a smaller market capitalization in the Fund relative to its
benchmark, the S&P 500 Index. We have done this in reaction to the high
prices of many large-cap stocks, and our belief that there is risk to the
earnings of larger multinational corporations as a result of the crisis in
Southeast Asia. We believe a more domestically-oriented portfolio that is
not heavily weighted in multinationals will perform relatively well in a
market that is affected by overseas turbulence.
Q: What is your outlook for the mid-cap market and the Mid Cap Growth Fund?
A: Generally, mid-caps are not as exposed to the Asian crisis as larger-cap
stocks. This is especially true among the large multinational companies
that rely on foreign sales to boost their earnings. In addition, as a
whole, mid-caps are well-positioned to participate in the ongoing
acquisition wave, which we expect to be prevalent in 1998 as companies look
for ways to boost their earnings in the aftermath of Southeast Asia.
Q: What sets Cadence Capital Management apart from other investment managers?
A: Our "blended" approach of investing in growth stocks that are reasonably
priced differentiates us from many of our peers. And given the high
valuations in many sectors of the stock market, we believe this strategy
will be particularly beneficial in the coming year.
The views of Mr. Breed are not indicative of any future performance of any PIMCO
Fund. Refer to pages 6 and 7 for more complete performance information on the
Capital Appreciation and Mid Cap Growth Funds.
1997 Semiannual 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:
$40 million
Top Ten Common Stocks:*
Company
<TABLE>
<S> <C>
Telefonos de Mexico - ADR 3.3%
Portugal Telecom 2.4%
Magyar Tavkozlesi Rt. 2.3%
Compania de Telecomunicaciones
de Chile SA SP - ADR 2.1%
Telecomunicacoes Brasileiras - ADR 2.1%
Centrais Electricas Brasileiras SA 'B' 2.0%
Compania Anonima Nacional
Telefonos da Venezuela - ADR 2.0%
YPF Sociedad Anonima - ADR 1.9%
Telefonica de Argentina - ADR 1.9%
MOL Magyar Olaj-es Gazipare 1.5%
Top Ten Total 21.5%
</TABLE>
Country Classifications:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Mexico 13.2%
Portugal 9.4%
Brazil 9.3%
Israel 8.6%
Chile 8.5%
Argentina 8.1%
South Africa 7.3%
Hungary 7.3%
India 6.0%
Turkey 5.7%
Other 16.6%
</TABLE>
*% of Total Investments as of December 31, 1997
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended December 31, 1997
<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>
6 Months (16.12%) (16.27%) (24.91%) (19.10%)
1 Year (2.01%) (2.26%) (11.59%) (2.35%)
3 Years* (3.51%) (3.79%) (3.86%) 0.74%
Since Inception* 5.82% (9.31%) -- --
</TABLE>
* Annualized
CUMULATIVE RETURNS THROUGH DECEMBER 31, 1997
$5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
EMERGING MSCI
MARKETS EMERGING MARKETS
MONTH FUND 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 6,921,278
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
</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 six-month semiannual period, Institutional Class shares of the
Emerging Markets Fund declined 16.12%, while Administrative Class shares fell
16.27%. Although absolute returns were negative, relative performance was
strong. The Fund led the average return of offerings with the same objective
(as measured by the Lipper Emerging Markets Fund Average) which fell 19.10%,
and widely outpaced the negative 24.91% return of its performance benchmark,
the MSCI Emerging Markets Index.
. The past six months were historically poor for emerging market countries. The
economic crisis in Southeast Asia, led by the collapse of the Korean won and
the Thai baht, dragged down all of emerging Asia, as foreign debt became
increasingly hard to service from local resources. The Fund had no weighting
in Korea for the entire fourth quarter, which helped it outperform much of the
competition.
. The Fund's best performers were located outside of Asia, including Eastern
Europe. One winner was Matav, the largest telecommunications service provider
in Hungary, which posted solid returns. Matav is currently unrolling a
nationwide support system for integrated billing and call collection that is
expected to lower administrative costs and enhance productivity.
. While most Asian markets still look weak, the manager believes there will be
investment opportunities in the region going forward. Collapsed currencies
make Asian goods highly competitive in world markets. In addition, there has
been a rise in consumer expectations stemming from higher educational levels
and real income growth in the region over the past 15 years. Finally, at the
most basic economic level, there is always demand for food, building
materials, transportation, and other everyday needs. Well run companies that
operate in these sectors will recover.
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:
$95 million
Top Ten Common Stocks:*
Company
<TABLE>
<S> <C>
Nokia 2.6%
Webs-Belgium 2.1%
Royal Dutch Petroleum 2.0%
Novartis 2.0%
Mannesmann 1.6%
Roche Holding 1.5%
Veba 1.4%
ENI 1.4%
Societe Generale 1.3%
NEC 1.3%
Top Ten Total 17.2%
</TABLE>
Country Classifications:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Japan 14.7%
France 13.1%
United Kingdom 10.7%
Germany 10.2%
Italy 8.8%
Switzerland 8.0%
Netherlands 6.0%
Finland 5.9%
Portugal 3.9%
Ireland 3.4%
Other 15.3%
</TABLE>
*% of Total Investments as of December 31, 1997
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended December 31, 1997
<TABLE>
<CAPTION>
Inst'l Class Admin. Class Lipper International
(Incep. 6/8/93) (Incep. 11/30/94) EAFE Index Fund Average
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
6 Months (7.09%) (7.17%) (8.36%) (6.43%)
1 Year 1.92% 1.63% 2.06% 5.49%
3 Years* 8.10% 7.84% 6.59% 8.58%
Since Inception* 8.20% 7.62% -- --
</TABLE>
* Annualized
CUMULATIVE RETURNS THROUGH DECEMBER 31, 1997
$5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
INTERNATIONAL
DEVELOPED EAFE
MONTH FUND INDEX
=========== ============= ===========
<S> <C> <C>
06/30/93 5,000,000 5,000,000
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
</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 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
- --------------------------------------------------------------------------------
. For the six months ended December 31, 1997, the International Developed Fund
posted a negative 7.09% return for Institutional Class shares, and a negative
7.17% for Administrative Class shares. However, these returns were better than
the 8.36% decline in the return of the MSCI EAFE Index, the Fund's benchmark.
. For the period, international markets produced mixed returns. Most European
markets had relatively strong results, while Asian markets, harmed by the
growing currency crisis, declined severely. The Fund benefited from
underweighting many of those falling markets, including Japan, while
emphasizing some countries that performed particularly well, such as
Switzerland.
. Recent winning holdings included Lloyds TSB Group PLC, a U.K.-based banking
and financial services holding company. Its stock price rose on news that Bank
of New York and Beneficial Corp. will acquire one of Lloyd's business lines.
Another success was Societe Generale, a banking and financial services company
headquartered in Paris. Management continued to make great progress in
improving the company's financial strength, as evidenced by its higher-than-
expected commission growth from both capital markets and the retail network.
. As a whole, the weakness in Asia has taken the luster off of international
stock prices. As a result, these markets have become more fairly valued
compared to the United States. Therefore, the Fund's manager believes that
exposure to international stocks continues to make sense for investors looking
to diversify their portfolios.
1997 Semiannual 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:
$753 million
Top Ten Common Stocks:*
Company
<TABLE>
<S> <C>
Kroger Co. 1.7%
Safeway, Inc. 1.7%
TJX Corp., Inc. 1.7%
Omnicom Group 1.7%
Carnival Corp. 'A' 1.6%
Costco Cos. 1.6%
Schering-Plough Corp. 1.6%
Southtrust Corp. 1.5%
Travelers Group, Inc. 1.5%
Computer Associates
International, Inc. 1.4%
Top Ten Total 16.0%
</TABLE>
Industry Classifications:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Financial and Business Services 26.2%
Consumer Discretionary 15.7%
Capital Goods 9.8%
Energy 8.9%
Health Care 7.7%
Technology 6.9%
Consumer Staples 5.5%
Materials and Processing 4.5%
Other 14.8%
</TABLE>
*% of Total Investments as of December 31, 1997
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended December 31, 1997
<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>
6 Months 16.17% 16.02% 10.58% 8.94%
1 Year 34.23% 34.01% 33.36% 20.27%
3 Years* 32.65% -- 31.15% 21.51%
5 Years* 21.34% -- 20.27% 15.17%
Since Inception* 20.04% 39.51% -- --
</TABLE>
* Annualized
CUMULATIVE RETURNS THROUGH DECEMBER 31, 1997
$5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
CAPITAL
APPRECIATION S&P 500
MONTH FUND INDEX
============== ============ =======
<S> <C> <C>
03/31/91 5,000,000 5,000,000
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
</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
- --------------------------------------------------------------------------------
. The Capital Appreciation Fund posted outstanding results for the six-month
period ended December 31, 1997, with returns of 16.17% for Institutional Class
shares, and 16.02% for Administrative Class shares. These results solidly
bested the 10.58% return of the S&P 500 Index, and the 8.94% average return of
funds with the same objective (as measured by the Lipper Capital Appreciation
Fund Average).
. The Fund benefited from its large exposure to the retail sector, particularly
through its holdings in the supermarket industry where technological and
logistical upgrades have led to higher profits at many supermarkets. One
example of this trend was the Fund's top holding, retail supermarket chain
Kroger. The company has improved its operating and financial performance and
has made good progress toward reducing its debt.
. Another winner for the Fund was Carnival Corp., which announced its sixth
dividend increase in seven years. This positive news stemmed from continued
heavy consumer demand and strong pricing activity. The company also unveiled
plans to expand its fleet over the next three years with seven new ships.
. One factor that hindered the Fund's performance in the fourth quarter was its
overweighted position in the energy sector. Falling oil prices at the end of
1997 resulted in declining stock prices for oil and natural gas drilling
companies, including Fund holding Nabors Industries, Inc.
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:
$571 million
Top Ten Common Stocks:*
Company
<TABLE>
<S> <C>
Cullen/Frost Bankers, Inc. 1.5%
Falcon Drilling Co., Inc. 1.5%
Compuware Corp. 1.4%
Borders Group, Inc. 1.4%
Consolidated Stores Corp. 1.3%
Bed, Bath & Beyond, Inc. 1.3%
Dean Foods Co. 1.3%
Union Planters Corp. 1.2%
Mercantile BanCorp. 1.2%
Richfood Holdings, Inc. 1.2%
Top Ten Total 13.3%
</TABLE>
Industry Classifications:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Financial and Business Services 27.4%
Consumer Discretionary 15.8%
Energy 10.7%
Technology 7.8%
Materials and Processing 7.1%
Consumer Staples 5.4%
Capital Goods 4.7%
Health Care 4.1%
Other 17.0%
</TABLE>
* % of Total Investments as of December 31, 1997
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended December 31, 1997
<TABLE>
<CAPTION>
Inst'l Class Admin. Class Lipper Mid-Cap
(Incep. 8/26/91) (Incep. 11/30/94) S&P Mid-Cap Index Fund Average
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
6 Months 17.83% 17.72% 17.05% 10.56%
1 Year 34.17% 33.86% 32.25% 19.69%
3 Years* 31.47% 31.13% 27.33% 22.52%
5 Years* 20.76% -- 17.80% 15.24%
Since Inception* 19.92% 31.11% -- --
</TABLE>
* Annualized
CUMULATIVE RETURNS THROUGH DECEMBER 31, 1997
$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
</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
- --------------------------------------------------------------------------------
. The Mid Cap Growth Fund posted excellent results for the semiannual period
ended December 31, 1997, with returns of 17.83% and 17.72%, respectively,
for Institutional and Administrative Class shares. These results edged the
17.05% return of the S&P Mid-Cap Index and significantly led the 10.56%
average return of funds with the same objective (as measured by the Lipper
Mid-Cap Fund Average).
. Financial services represented the Fund's largest weighting and top
performing sector during the period. Strong results were aided by the
acquisition trend within the banking industry, as evidenced by the
performance of one of the Fund's largest holdings, Cullen/Frost Bankers,
Inc., which purchased Harrisburg Bancshares, Inc., a smaller competitor.
. Returns were also helped by the strong performance of milk and food
distributor Dean Foods. The company announced a restructuring plan in 1996
following several quarters of underperformance. Since then, it has
consistently beaten analysts' earnings estimates.
. Detracting from Fund performance, especially during the fourth quarter, was
its overweighted position in the energy sector. Falling oil prices at the
end of 1997 resulted in declining stock prices for oil and natural gas
drilling companies. The sell-off in oil stemmed from concerns about a
possible oversupply and decreasing demand in Southeast Asia.
1997 Semiannual 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:
$215 million
Top Ten Common Stocks:*
Company
<TABLE>
<S> <C>
Atlantic Coast Airlines, Inc. 2.2%
Crossmann Communities, Inc. 2.0%
Community First Bankshares, Inc. 1.9%
Gardner Denver Machinery, Inc. 1.9%
Pillowtex Corp. 1.9%
Warren Bancorp, Inc. 1.9%
Virco Manufacturing Corp. 1.8%
Chittenden Corp. 1.8%
Provident Bankshares Corp. 1.8%
Osteotech, Inc. 1.8%
Top Ten Total 19.0%
</TABLE>
Industry Classifications:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Consumer Discretionary 26.3%
Financial and Business Services 20.0%
Technology 7.8%
Energy 7.5%
Capital Goods 5.9%
Transportation 5.1%
Health Care 4.9%
Consumer Staples 3.6%
Other 18.9%
</TABLE>
*% of Total Investments as of December 31, 1997
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended December 31, 1997
<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>
6 Months 20.99% 20.85% 11.04% 16.57%
1 Year 36.69% 36.37% 22.36% 29.69%
3 Years* 32.12% -- 22.34% 26.06%
Since Inception* 25.01% 30.64% -- --
</TABLE>
* Annualized
Cumulative Returns Through December 31, 1997
$5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Micro Cap Russell
Month Growth Fund 2000 Index
============= =========== ==========
<S> <C> <C>
06/30/93 5,000,000 5,000,000
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
</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.
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
. Investors in the Micro Cap Growth Fund enjoyed very strong performance
results over the six months ended December 31, 1997. The Fund's
Institutional Class shares returned 20.99% while Administrative Class
shares rose 20.85%. These returns easily surpassed the Russell 2000 Index
and the average micro cap fund (as measured by the Lipper Micro-Cap Fund
Average) which increased 11.04% and 16.57%, respectively.
. The Fund's overweight position in financial services companies boosted
performance. These firms benefited from low interest rates, reasonable
stock price multiples and an active market for mergers and acquisitions. A
leading holding for the Fund was Abington Bancorp, Inc.
. While representing a relatively small proportion of the Fund's investment
portfolio, the health care sector also posted strong gains. Driving much of
the group's favorable relative performance were Osteotech, Inc. and
Sheridan Healthcare, Inc.
. The Fund also held a significant stake in consumer discretionary stocks
which delivered mixed returns overall. While holdings such as Pillowtex
Corp., Movado Group, Inc. and Virco Manufacturing Corp. were significant
contributors, disappointing earnings growth prompted the manager to trim
the Fund's position in this sector by selling less successful names like
American Woodmark Corp. and Chattem, Inc.
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:
$39 million
Top Ten Common Stocks:*
Company
<TABLE>
<S> <C>
Fred Meyer, Inc. 1.4%
Associated Banc-Corp 1.4%
Protective Life Corp. 1.3%
Mueller Industries, Inc. 1.3%
Oneok, Inc. 1.2%
Coach USA, Inc. 1.2%
Veritas DGC, Inc. 1.2%
First Midwest Bancorp, Inc. 1.2%
Westamerica BanCorp 1.2%
Peoples Heritage
Financial Group 1.1%
Top Ten Total 12.5%
</TABLE>
Industry Classifications:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Financial and Business Services 23.2%
Consumer Discretionary 15.7%
Capital Goods 12.4%
Energy 10.6%
Technology 7.8%
Health Care 5.0%
Materials and Processing 4.6%
Consumer Staples 4.5%
Other 16.2%
</TABLE>
*% of Total Investments as of December 31, 1997
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended December 31, 1997
<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>
6 Months 13.20% 13.03% 11.04% 10.55%
1 Year 26.72% 27.05% 22.36% 20.63%
2 Years* 21.68% 21.77% 19.39% 19.83%
3 Years* 21.73% -- 22.34% 22.78%
5 Years* 17.68% -- 16.41% 16.51%
Since Inception* 22.89% 17.18% -- --
</TABLE>
* Annualized
Cumulative Returns Through December 31, 1997
$5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Small Cap Russell
Month Growth Fund 2000 Index
============= =========== ==========
<S> <C> <C>
01/31/91 5,000,000 5,000,000
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
</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.
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
. Small Cap Growth Fund shareholders experienced favorable returns over the
semiannual period ended December 31, 1997, a period in which Institutional
and Administrative Class shares returned 13.20% and 13.03%, respectively.
These results bested the 11.04% return of the Russell 2000 Index of
small-cap stocks, as well as the 10.55% average return of funds with the
same objective (the Lipper Small-Cap Fund Average).
. Stocks in defensive sectors, such as financial services and utilities
provided the strongest relative returns in 1997's second half. In addition,
highly liquid, stable growth stocks were rewarded, as demonstrated by the
double-digit returns of health care and consumer staples.
. The Fund's largest sector position was financial services. During the
latter half of the year, companies in this sector benefited from low
interest rates, reasonable price multiples and industry consolidation.
Successful holdings included Associated Banc-Corp, Colonial BancGroup, Inc.
and Protective Life Corp. Consumer discretionary stocks also contributed to
performance. Several holdings in this sector saw significant price gains,
including food and general merchandise food store chain Fred Meyer, Inc.;
furniture maker Ethan Allen Interiors, Inc.; and home furnishings specialty
store Pier 1 Imports, Inc.
. Detracting from relative returns were holdings in the energy sector. The
poor performance in this sector can be attributed to energy prices falling
quickly at the end of the year on fears that a significant economic
slowdown in Asia will reduce global demand for energy, allowing supply to
build up, and depressing energy prices.
1997 Semiannual 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:
$100 million
Top Ten Common Stocks:*
<TABLE>
<CAPTION>
Company
<S> <C>
HBO & Co. 4.5%
Eli Lilly & Co. 3.8%
Pfizer, Inc. 3.3%
Schlumberger Limited 3.2%
Cendant Corp. 3.2%
Safeway, Inc. 3.1%
AT&T Corp. 3.1%
Tele-Communications `A' 2.9%
America Online, Inc. 2.9%
TJX Corp., Inc. 2.7%
Top Ten Total 32.7%
</TABLE>
Industry Classifications:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Consumer Discretionary 19.6%
Health Care 17.7%
Technology 13.9%
Financial and
Business Services 13.6%
Communications 7.8%
Energy 6.0%
Consumer Staples 4.1%
Materials and Processing 4.1%
Other 13.2%
</TABLE>
*% of Total Investments as of December 31, 1997
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended December 31, 1997
<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>
6 Months 11.29% 11.17% 10.58% 9.15%
1 Year 25.32% 24.93% 33.36% 25.18%
2 Years* 21.58% 21.24% 28.06% 22.24%
3 Years* 23.67% -- 31.15% 24.99%
Since Inception* 23.61%* 21.02% -- --
</TABLE>
* Annualized
CUMULATIVE RETURNS THROUGH DECEMBER 31, 1997
$5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Month Core Equity Fund S&P 500 Index
======== ================ =============
<S> <C> <C>
12/31/94 5,000,000 5,000,000
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 7,255,188 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
</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
- --------------------------------------------------------------------------------
. The latter six months of 1997 saw the Core Equity Fund's Institutional and
Administrative Class shares return a solid 11.29% and 11.17%, respectively. In
comparison, the S&P 500 Index returned a lesser 10.58%, and the Fund also
outperformed the 9.15% average return of funds with the same investment
objective (as measured by the Lipper Growth Fund Average).
. The Fund maintained its large exposure to the healthcare sector during the
period, as the world's aging population continued to accelerate demand for
certain prescription medicines and healthcare services. HBO & Company, a
provider of computerized information systems to the healthcare sector and the
Fund's top holding, illustrated the healthcare industry's good fortunes, as it
posted excellent results during the fourth quarter.
. AT&T Corp., which outperformed all other stocks in the Dow Jones Industrial
Average during the latter half of 1997, also boosted performance. AT&T's
success was attributed to the company's new Chief Executive Officer, Michael
Armstrong, who is moving swiftly to reverse AT&T's profit decline.
. Although the healthcare sector in general stood out as a solid performer, one
particular stock in this industry hampered results. Oxford Health Plans, Inc.,
one of the nation's largest HMOs, surprised investors when it announced that
earnings would fall significantly short of expectations due to higher medical
costs. Oxford's shares lost nearly half of their value as a result of this
news.
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:
$7 million
Top Ten Common Stocks:*
<TABLE>
<CAPTION>
Company
<S> <C>
Dime Bancorp, Inc. 4.9%
Intuit, Inc. 3.3%
Teleport Communications Group, Inc. 3.0%
Abercrombie & Fitch Co. 'A' 2.9%
Paging Network, Inc. 2.5%
Sunbeam-Oster, Inc. 2.4%
Sun Co., Inc. 2.4%
Fred Meyer, Inc. 2.3%
Southwest Airlines Co. 2.3%
Weatherford Enterra, Inc. 2.3%
Top Ten Total 28.3%
</TABLE>
Industry Classifications:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Financial and
Business Services 22.0%
Consumer Discretionary 18.7%
Technology 13.6%
Energy 8.0%
Communications 6.5%
Consumer Services 5.6%
Miscellaneous 4.0%
Transportation 3.3%
Other 18.3%
</TABLE>
*% of Total Investments as of December 31, 1997
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended December 31, 1997
<TABLE>
<CAPTION>
Inst'l Class Admin. Class Lipper Mid-Cap
(Incep. 12/28/94) (Incep. 8/21/97) S&P Mid-Cap Index Fund Average
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
6 Months 8.52% -- 17.05% 10.56%
1 Year 16.22% -- 32.25% 19.69%
3 Years* 21.55% -- 27.33% 22.52%
Since Inception -- (0.29%) -- --
Since Inception* 21.46% -- -- --
</TABLE>
* Annualized
CUMULATIVE RETURNS THROUGH DECEMBER 31, 1997
$5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Mid Cap S&P 500
Month Equity Fund Mid Cap Index
======== =========== =============
<S> <C> <C>
12/31/94 5,000,000 5,000,000
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
</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's Institutional Class shares posted disappointing
results for the semiannual period ended December 31, 1997. The Fund's 8.52%
return lagged both the 17.05% advance of the S&P Mid-Cap Index, and the
average mid-cap fund, which posted a 10.56% return (as measured by the Lipper
Mid-Cap Fund Average).
. The finance sector was the best performing industry for the Fund during the
second half of 1997, with several factors adding to favorable results. Most
important was the declining interest rate environment, as the yield on the 30-
year Treasury bond decreased from 6.4% to 5.9%. Financial sector stocks also
received a boost from a very favorable merger and acquisition trend. Dime
Bancorp, Inc. benefited from this trend through its acquisition of North
American Mortgage Co., which was warmly received by analysts and investors.
. Fred Meyer, Inc., a multi-product retail chain, was another Fund holding that
performed well through acquisition. Its stock traded higher on announced plans
to buy Quality Food Centers, Inc. and Ralph's Grocery Co. The combination will
create one of the largest supermarket companies in the United States.
. Less positive for performance was the Fund's overweighted exposure to the
technology sector, which performed poorly as a result of the Southeast Asian
currency crisis. Many technology stocks declined as the market quickly
concluded that 1998 growth in global technology spending would be negatively
impacted due to lower sales in Asian countries.
1997 Semiannual 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:
$172 million
Top Ten Common Stocks:*
<TABLE>
<CAPTION>
Company
<S> <C>
Southern New England
Telecommunications Corp. 4.5%
PNC Bank Corp. 4.3%
RJR Nabisco Holdings Corp. 4.1%
Supervalu, Inc. 4.0%
GATX Corp. 2.2%
Washington Water Power Co. 2.2%
Maytag Corp. 2.2%
U.S. West Communications Group 2.2%
Bell Atlantic Corp. 2.1%
Peoples Energy Corp. 2.1%
Top Ten Total 29.9%
</TABLE>
Industry Classifications:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Utilities 21.3%
Consumer Discretionary 18.4%
Financial and
Business Services 12.9%
Materials and Processing 11.1%
Consumer Staples 10.1%
Energy 9.2%
Health Care 4.1%
Capital Goods 3.9%
Other 9.0%
</TABLE>
*% of Total Investments as of December 31, 1997
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended December 31, 1997
<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>
6 Months 14.13% 14.01% 10.58% 11.07%
1 Year 31.38% 31.03% 33.36% 27.44%
3 Years* 28.67% 28.38% 31.15% 25.50%
5 Years* 17.85% -- 20.27% 17.00%
Since Inception* 17.73% 27.56% -- --
</TABLE>
* Annualized
CUMULATIVE RETURNS THROUGH DECEMBER 31, 1997
$5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Month Equity Income Fund S&P 500 Index
======= ================== =============
<S> <C> <C>
03/31/91 5,000,000 5,000,000
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
06/31/94 7,030,089 6,520,301
09/30/94 7,420,033 6,839,131
12/31/94 7,138,119 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
</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 delivered strong performance for the six months ended
December 31, 1997. Specifically, the Fund's Institutional and Administrative
Class shares returned 14.13% and 14.01%, respectively. These returns handily
outperformed the S&P 500 Index return of 10.58%, and the 11.07% average return
of funds with the same objective (as measured by the Lipper Equity Income Fund
Average).
. During the third quarter of 1997, the stock market as a whole did very well.
Effective stock selection further enhanced performance, most notably from
holdings in the finance and consumer staples sectors. Examples of stocks that
buoyed returns during the period were Bankers Trust, Bear Stearns, Chase
Manhattan and Maytag.
. In the turbulent fourth quarter, the Asian crisis caused investors to quickly
reassess the short-term prospects for many sectors of the marketplace. During
this period, Fund performance was boosted by successful sector selection,
including an overweighted position in the utility sector and an underweighted
allocation to technology stocks. In particular, the Fund benefited from
holdings such as Southern New England Telecommunications, which was subject to
takeover rumors. PG&E Corp., PNC Bank Corp., RJR Nabisco and Supervalu also
performed well.
. On the downside, Fund performance was hurt somewhat by holdings such as
Capstead Mortgage and Phelps Dodge. In addition, the Fund suffered from the
continuing lag of value versus growth stocks.
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:
$208 million
Top Ten Common Stocks:*
Company
<TABLE>
<S> <C>
Supervalu, Inc. 3.0%
American Greetings Corp. 'A' 3.0%
Atlantic Richfield Co. 3.0%
Bear Stearns Cos. 3.0%
PG & E Corp. 2.9%
Bell Atlantic Corp. 2.9%
Maytag Corp. 2.9%
DTE Energy Co. 2.7%
Westvaco Corp. 2.7%
Southern New England
Telecommunications Corp. 2.4%
Top Ten Total 28.5%
</TABLE>
Industry Classifications:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Consumer Discretionary 20.8%
Utilities 13.7%
Financial and
Business Services 11.9%
Consumer Staples 10.4%
Energy 10.4%
Materials and Processing 10.3%
Technology 9.4%
Health Care 5.4%
Other 7.7%
</TABLE>
*% of Total Investments as of December 31, 1997
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended December 31, 1997
<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>
6 Months 10.17% -- 10.58% 9.87%
1 Year 26.21% -- 33.36% 26.99%
3 Years* 28.25% -- 31.15% 26.48%
5 Years* 18.69% -- 20.27% 17.53%
Since Inception -- 4.19% -- --
Since Inception* 17.86% -- -- --
</TABLE>
* Annualized
CUMULATIVE RETURNS THROUGH DECEMBER 31, 1997
$5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Month Value Fund S&P 500 Index
======== ========== =============
<S> <C> <C>
12/31/91 5,000,000 5,000,000
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
</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
- --------------------------------------------------------------------------------
. Like many of its competitors, the PIMCO Value Fund had trouble keeping up with
the more growth-oriented S&P 500 Index for the six months ended December 31,
1997. During this period the Fund's Institutional Class shares returned
10.17%, outperforming the 9.87% average return of funds with the same
objective (as measured by the Lipper Growth and Income Fund Average), but
narrowly trailing the S&P 500 Index return of 10.58%.
. The Fund posted strong third quarter 1997 results. Much of this success was
due to better broad market performance. Earlier in 1997, the stock market's
advancers were clustered among the largest stocks in the S&P 500 Index. But,
during the third quarter, a wider distribution of stocks performed well.
. Among the Fund's better performers was Adobe Systems, Inc., which reported
better-than-expected earnings based on strong sales of its desktop publishing
software, and plans for a share buyback.
. The fourth quarter saw investors return to large-cap, highly liquid stocks as
mounting Asian financial turmoil caused earnings fears. Overall, stock
selection was fairly neutral during these three months, with the exception of
some significant losses in the health care and consumer staples sector; in
particular, Foundation Health and IBP hurt performance. Fortunately, the
Fund's policy of wide diversification prevented any single holding or sector
from causing extensive damage.
1997 Semiannual 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:
$236 million
Top Ten Common Stocks:*
<TABLE>
<CAPTION>
Company
<S> <C>
Continental Homes Holding Corp. 1.1%
Interra Financial, Inc. 1.0%
Fleetwood Enterprises, Inc. 1.0%
McGrath Rentcorp 1.0%
Rochester Gas & Electric Corp. 1.0%
Del Webb Corp. 1.0%
Westinghouse Air Brake Co. 1.0%
Roadway Express, Inc. 1.0%
Southwest Securities Group, Inc. 1.0%
Harman International Industries, Inc. 1.0%
Top Ten Total 10.1%
</TABLE>
Industry Classifications:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Financial and
Business Services 19.6%
Materials and Processing 17.6%
Consumer Discretionary 13.0%
Capital Goods 8.5%
Utilities 8.0%
Energy 6.6%
Technology 5.3%
Transportation 3.6%
Other 17.8%
</TABLE>
*% of Total Investments as of December 31, 1997
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended December 31, 1997
<TABLE>
<CAPTION>
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>
6 Months 17.57% 17.35% 11.04% 10.55%
1 Year 35.02% 34.70% 22.36% 20.63%
2 Years* 31.32% 30.98% 19.39% 19.83%
3 Years* 29.34% -- 22.34% 22.78%
5 Years* 18.86% -- 16.41% 16.51%
Since Inception* 19.14% 30.73% -- --
</TABLE>
* Annualized
CUMULATIVE RETURNS THROUGH DECEMBER 31, 1997
$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
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 7,433,163
03/31/94 7,099,943 7,245,646
06/30/94 6,830,154 6,963,464
09/30/94 7,039,274 7,466,854
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
</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.
- --------------------------------------------------------------------------------
PORTFOLIO INSIGHTS
- --------------------------------------------------------------------------------
. Shareholders of the Small Cap Value Fund experienced very strong returns over
the six months ended December 31, 1997, a period in which Institutional and
Administrative Class shares returned 17.57% and 17.35%, respectively. These
results compare very favorably to the 11.04% return of the Fund's benchmark
(the Russell 2000 Index) and the 10.55% average return of funds with the same
objective (the Lipper Small-Cap Fund Average).
. Much of the Fund's success can be traced to the third quarter of 1997. While
the majority of the market's gains have been contained to large-cap stocks,
the third quarter saw a small-cap stock surge. The Fund benefited heavily from
this rally, posting a 15% return for the quarter.
. Financial services holdings were strong contributors, as takeovers in the
banking and brokerage industries drove up stock prices. Also benefiting from
merger activity was the Fund's position in Computer Data Systems, Inc. This
provider of information technology solutions saw its share price surge on the
announced takeover plan of Affiliated Computer Service, Inc.
. The fourth quarter saw Asian financial woes frighten U.S. investors into a
flight back to size and liquidity. As a result, the Russell 2000 Index fell
3.4% during the fourth quarter. However, the Fund generated a positive return
during the period largely because most of the damage in the small-cap market
was done to growth-versus more value-oriented stocks. Value sectors that
boosted relative returns included utilities and building related stocks.
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:
$43 million
Top Ten Common Stocks:*
Company
<TABLE>
<S> <C>
Microsoft Corp. 2.7%
Merck & Co., Inc. 2.5%
Ford Motor Co. 2.4%
Exxon Corp. 2.3%
BellSouth Corp. 2.1%
Morgan Stanley,
Dean Witter, Discover and Co. 2.1%
Compaq Computer Corp. 2.0%
Bell Atlantic Corp. 1.8%
Schering-Plough Corp. 1.8%
Caterpillar, Inc. 1.7%
Top Ten Total 21.4%
</TABLE>
Industry Classifications:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Financial and Business Services 17.9%
Consumer Discretionary 16.7%
Technology 13.4%
Health Care 10.3%
Utilities 9.5%
Energy 9.1%
Capital Goods 7.8%
Consumer Staples 6.3%
Other 9.0%
</TABLE>
*% of Total Investments as of December 31, 1997
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended December 31, 1997
<TABLE>
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>
6 Months 11.29% -- 10.58% 9.87%
1 Year 30.85% -- 33.36% 26.99%
3 Years* 28.68% -- 31.15% 26.48%
5 Years* 17.07% -- 20.27% 17.53%
Since Inception -- 4.37% -- --
Since Inception* 16.11% -- -- --
</TABLE>
* Annualized
CUMULATIVE RETURNS THROUGH DECEMBER 31, 1997
$5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
ENCHANCED EQUITY S&P 500
MONTH FUND INDEX
============ ================ ===============
<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 9,538,857 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
</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 six-month
period ended December 31, 1997, with returns of 11.29% for Institutional Class
shares versus 10.58% for the S&P 500 Index and 9.87% for funds with the same
investment objective (as measured by the Lipper Growth & Income Fund Average).
. Positives for the Fund included holdings in the airline and utilities sectors
which posted significant gains. The airline industry's efforts to trim costs
and maintain favorable pricing paid off, as the stocks of the entire group
were strong. The Fund's utility stocks also performed well, as the steady drop
in the yield on the 30-year Treasury bond fueled demand for interest-sensitive
stocks. The perception that utilities have less downside volatility than other
stocks also helped them gain favor among cautious investors.
. Other top performing sectors for the Fund were healthcare, shelter, and
retail. In addition, throughout 1997 the Fund's financial services stocks were
strong performers. Mergers, solid profit growth, and declining interest rates
propelled many banks and securities brokers.
. One area that hurt the Fund's performance was its exposure to the technology
sector. These stocks declined due to signs of weakening demand for products in
overseas markets resulting from the economic crisis in Asia. A modest above-
index exposure to technology, combined with weak stock selection, further
dragged down the Fund's returns.
1997 Semiannual 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:
$66 million
Top Five Holdings:*
Issuer
<TABLE>
<S> <C>
Federal Home Loan
Mortgage Corporation - 6.500% 5.3%
Federal Home Loan
Mortgage Corporation - 6.500% 5.3%
Long Island Lighting Co. - 9.000% 3.0%
U.S. Treasury Bonds - 6.500% 2.8%
Government National
Mortgage Assn. - 7.375% 2.1%
Top Five Total 18.5%
</TABLE>
Industry Classifications:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Mortgage Backed Securities 29.8%
Short-Term Instruments 12.0%
Consumer Discretionary 9.6%
Financial and Business Services 9.2%
Energy 5.3%
Corporate Bonds and Notes 5.0%
Technology 4.4%
Consumer Staples 4.0%
Other 20.7%
</TABLE>
*% of Total Investments as of December 31, 1997
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
TOTAL RETURN INVESTMENT PERFORMANCE For the Period Ended December 31, 1997
<TABLE>
<CAPTION>
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>
6 Months 10.22% 7.97% 9.01% 7.89%
1 Year 21.93% 20.00% 23.62% 18.96%
3 Years* 20.53% 19.20% 22.60% 19.44%
5 Years* 13.03% 13.18% 15.10% 13.20%
Since Inception 13.64% -- -- --
</TABLE>
* Annualized
CUMULATIVE RETURNS THROUGH DECEMBER 31, 1997
$5,000,000 invested at inception
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Lipper 60% S&P 500 Index
Balanced Balanced and 40% Lehman
Month Fund Index Aggregate Bond Index
======== ========= ======== ====================
<S> <C> <C> <C>
06/30/92 5,000,000 5,000,000 5,000,000
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
</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 Balanced Fund turned in solid results for the six-month period ended
December 31, 1997, posting a 10.22% return which was significantly higher
than the 7.89% average return of funds with the same objective (as measured
by the Lipper Balanced Fund Average).
. The Fund's manager maintained an allocation mix of 60% stocks and 40% bonds
and looked to add value relative to its Lipper benchmark by actively
managing both its equity and fixed income components.
. Contributing to favorable stock performance was PNC Bank Corp. which
advanced on positive market response to efforts to expand its business mix
and exercise more disciplined risk management. PG&E Corp., a holding
company that markets energy services, was another stock success story. As
the Asian economic crisis unfolded, investors were attracted to the
domestically-based earnings of the company.
. Favorable fixed income returns were paced by an above-index duration rating
which benefited performance as yields declined. The Fund's significant
allocation to mortgage-backed securities was also a plus as the yield
advantage of low-coupon mortgages led the sector to outperform comparable
duration Treasuries.
. Less positive for Fund performance was an overweighted position in energy
stocks which, outside of PG&E Corp., generally underperformed the market,
and several holdings in the consumer staples sector also lagged the market.
16 PIMCO Funds
<PAGE>
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
income-producing stocks and convertibles.
Total Net Assets:
$471 million
- --------------------------------------------------------------------------------
PORTFOLIO CHARACTERISTICS
- --------------------------------------------------------------------------------
Top Ten Common Stocks:*
Company
<TABLE>
<S> <C>
Dean Foods Co. 4.4%
AT&T Corp. 3.1%
SCI Systems, Inc. 3.0%
Bell Atlantic Corp. 2.9%
SBC Communications, Inc. 2.8%
Capital One Financial Corp. 2.8%
Tandy Corp. 2.8%
Banc One Corp. 2.8%
Ball Corp. 2.6%
Trinity Industries, Inc. 2.5%
Top Ten Total 29.7%
</TABLE>
Industry Classifications:*
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Financial and
Business Services 19.6%
Communications 11.3%
Materials
and Processing 9.5%
Consumer
Discretionary 8.8%
Consumer Staples 7.7%
Technology 6.0%
Industrial 5.6%
Energy 5.5%
Other 26.0%
</TABLE>
*% of Total Investments as of December 31, 1997
The Institutional Class of the Renaissance Fund was opened on December 30, 1997.
The total return performance of the Institutional Class for the one day period
ending December 31, 1997 was 0.83%. Past performance is not an indication of
future results.
1997 Semiannual Report 17
<PAGE>
Financial Highlights - Institutional Classes
<TABLE>
<CAPTION>
Net Asset Net Realized/ Total
Value Net Unrealized Income from
Beginning Investment Gain (Loss) on Investment
Selected Per Share Data for the Year or Period Ended: of Period Income (Loss) Investments Operations
<S> <C> <C> <C> <C>
Emerging Markets Fund
Institutional Class
12/31/97 (b) $ 13.96 $ 0.00(a) $ (2.25)(a) $ (2.25)
- -------------------------------------------------------- ----------- ------------ ------------- -----------
06/30/97 12.66 0.06(a) 1.30(a) 1.36
- -------------------------------------------------------- ----------- ------------ ------------- -----------
11/01/95-06/30/96 11.27 0.03 1.40 1.43
- -------------------------------------------------------- ----------- ------------ ------------- -----------
10/31/95 16.53 0.07 (4.55) (4.48)
- -------------------------------------------------------- ----------- ------------ ------------- -----------
10/31/94 12.27 (0.01) 4.45 4.44
- -------------------------------------------------------- ----------- ------------ ------------- -----------
06/01/93-10/31/93 10.00 0.03 2.52 2.55
- -------------------------------------------------------- ----------- ------------ ------------- -----------
Administrative Class
12/31/97 (b) 13.95 (0.01)(a) (2.26)(a) (2.27)
- -------------------------------------------------------- ----------- ------------ ------------- -----------
06/30/97 12.63 0.00(a) 1.32(a) 1.32
- -------------------------------------------------------- ----------- ------------ ------------- -----------
11/01/95-06/30/96 11.24 0.02(a) 1.40(a) 1.42
- -------------------------------------------------------- ----------- ------------ ------------- -----------
10/31/95 16.95 0.00 (4.95) (4.95)
- -------------------------------------------------------- ----------- ------------ ------------- -----------
International Developed Fund
Institutional Class
12/31/97 (b) $ 13.12 $ 0.03(a) $ (0.96)(a) $ (0.93)
- -------------------------------------------------------- ----------- ------------ ------------- -----------
06/30/97 12.54 0.10(a) 1.09(a) 1.19
- -------------------------------------------------------- ----------- ------------ ------------- -----------
11/01/95-06/30/96 11.74 0.72 0.72 1.44
- -------------------------------------------------------- ----------- ------------ ------------- -----------
10/31/95 11.86 0.10 0.30 0.40
- -------------------------------------------------------- ----------- ------------ ------------- -----------
10/31/94 10.69 0.09 1.15 1.24
- -------------------------------------------------------- ----------- ------------ ------------- -----------
06/08/93-10/31/93 10.00 0.05 0.69 0.74
- -------------------------------------------------------- ----------- ------------ ------------- -----------
Administrative Class
12/31/97 (b) 13.05 0.02(a) (0.95)(a) (0.93)
- -------------------------------------------------------- ----------- ------------ ------------- -----------
06/30/97 12.51 0.06(a) 1.09(a) 1.15
- -------------------------------------------------------- ----------- ------------ ------------- -----------
11/01/95-06/30/96 11.73 0.69(a) 0.72(a) 1.41
- -------------------------------------------------------- ----------- ------------ ------------- -----------
11/30/94-10/31/95 11.21 0.02 1.01 1.03
- -------------------------------------------------------- ----------- ------------ ------------- -----------
Capital Appreciation Fund
Institutional Class
12/31/97 (b) $ 21.19 $ 0.07(a) $ 3.37(a) $ 3.44
- -------------------------------------------------------- ----------- ------------ ------------- -----------
06/30/97 18.10 0.24 5.08 5.32
- -------------------------------------------------------- ----------- ------------ ------------- -----------
11/01/95-06/30/96 16.94 0.35 1.99 2.34
- -------------------------------------------------------- ----------- ------------ ------------- -----------
10/31/95 13.34 0.18 3.60 3.78
- -------------------------------------------------------- ----------- ------------ ------------- -----------
10/31/94 13.50 0.14 (0.12) 0.02
- -------------------------------------------------------- ----------- ------------ ------------- -----------
10/31/93 11.27 0.11 2.73 2.84
- -------------------------------------------------------- ----------- ------------ ------------- -----------
10/31/92 11.02 0.14 1.05 1.19
- -------------------------------------------------------- ----------- ------------ ------------- -----------
Administrative Class
12/31/97 (b) 21.16 0.04(a) 3.37(a) 3.41
- -------------------------------------------------------- ----------- ------------ ------------- -----------
07/31/96-06/30/97 17.19 0.16 6.03 6.19
- -------------------------------------------------------- ----------- ------------ ------------- -----------
Mid Cap Growth Fund
Institutional Class
12/31/97 (b) $ 20.28 $ 0.05(a) $ 3.58(a) $ 3.63
- -------------------------------------------------------- ----------- ------------ ------------- -----------
06/30/97 19.44 (0.07) 5.25 5.18
- -------------------------------------------------------- ----------- ------------ ------------- -----------
11/01/95-06/30/96 18.16 0.32 1.53 1.85
- -------------------------------------------------------- ----------- ------------ ------------- -----------
10/31/95 13.97 0.07 4.19 4.26
- -------------------------------------------------------- ----------- ------------ ------------- -----------
10/31/94 13.97 0.06 0.01 0.07
- -------------------------------------------------------- ----------- ------------ ------------- -----------
10/31/93 11.29 0.07 2.70 2.77
- -------------------------------------------------------- ----------- ------------ ------------- -----------
10/31/92 10.28 0.10 1.03 1.13
- -------------------------------------------------------- ----------- ------------ ------------- -----------
<CAPTION>
Dividends Dividends in Distributions
from Net Excess of Net from Net
Investment Investment Realized
Selected Per Share Data for the Year or Period Ended: Income Income Capital Gains
<S> <C> <C> <C>
Emerging Markets Fund
Institutional Class
12/31/97 (b) $ 0.00 $ 0.00 $ 0.00
- -------------------------------------------------------- ----------- ----------- -----------
06/30/97 (0.06) 0.00 0.00
- -------------------------------------------------------- ----------- ----------- -----------
11/01/95-06/30/96 (0.04) 0.00 0.00
- -------------------------------------------------------- ----------- ----------- -----------
10/31/95 (0.06) 0.00 (0.72)
- -------------------------------------------------------- ----------- ----------- -----------
10/31/94 0.00 0.00 (0.18)
- -------------------------------------------------------- ----------- ----------- -----------
06/01/93-10/31/93 (0.02) 0.00 (0.26)
- -------------------------------------------------------- ----------- ----------- -----------
Administrative Class
12/31/97 (b) 0.00 0.00 0.00
- -------------------------------------------------------- ----------- ----------- -----------
06/30/97 0.00 0.00 0.00
- -------------------------------------------------------- ----------- ----------- -----------
11/01/95-06/30/96 (0.03) 0.00 0.00
- -------------------------------------------------------- ----------- ----------- -----------
10/31/95 (0.05) 0.00 (0.71)
- -------------------------------------------------------- ----------- ----------- -----------
International Developed Fund
Institutional Class
12/31/97 (b) $ (0.11) $ 0.00 $ (0.58)
- -------------------------------------------------------- ----------- ----------- -----------
06/30/97 0.00 0.00 (0.61)
- -------------------------------------------------------- ----------- ----------- -----------
11/01/95-06/30/96 (0.07) (0.36) (0.21)
- -------------------------------------------------------- ----------- ----------- -----------
10/31/95 (0.09) 0.00 (0.43)
- -------------------------------------------------------- ----------- ----------- -----------
10/31/94 (0.03) 0.00 (0.04)
- -------------------------------------------------------- ----------- ----------- -----------
06/08/93-10/31/93 (0.04) 0.00 (0.01)
- -------------------------------------------------------- ----------- ----------- -----------
Administrative Class
12/31/97 (b) (0.03) 0.00 (0.58)
- -------------------------------------------------------- ----------- ----------- -----------
06/30/97 0.00 0.00 (0.61)
- -------------------------------------------------------- ----------- ----------- -----------
11/01/95-06/30/96 (0.07) (0.35) (0.21)
- -------------------------------------------------------- ----------- ----------- -----------
11/30/94-10/31/95 (0.08) 0.00 (0.43)
- -------------------------------------------------------- ----------- ----------- -----------
Capital Appreciation Fund
Institutional Class
12/31/97 (b) $ (0.12) $ 0.00 $ (1.68)
- -------------------------------------------------------- ----------- ----------- -----------
06/30/97 (0.10) 0.00 (2.13)
- -------------------------------------------------------- ----------- ----------- -----------
11/01/95-06/30/96 (0.15) 0.00 (1.03)
- -------------------------------------------------------- ----------- ----------- -----------
10/31/95 (0.18) 0.00 0.00
- -------------------------------------------------------- ----------- ----------- -----------
10/31/94 (0.14) 0.00 (0.04)
- -------------------------------------------------------- ----------- ----------- -----------
10/31/93 (0.11) 0.00 (0.50)
- -------------------------------------------------------- ----------- ----------- -----------
10/31/92 (0.14) 0.00 (0.72)
- -------------------------------------------------------- ----------- ----------- -----------
Administrative Class
12/31/97 (b) (0.14) 0.00 (1.68)
- -------------------------------------------------------- ----------- ----------- -----------
07/31/96-06/30/97 (0.09) 0.00 (2.13)
- -------------------------------------------------------- ----------- ----------- -----------
Mid Cap Growth Fund
Institutional Class
12/31/97 (b) $ (0.08) $ 0.00 $ (1.33)
- -------------------------------------------------------- ----------- ----------- -----------
06/30/97 (0.05) 0.00 (4.29)
- -------------------------------------------------------- ----------- ----------- -----------
11/01/95-06/30/96 (0.14) 0.00 (0.43)
- -------------------------------------------------------- ----------- ----------- -----------
10/31/95 (0.07) 0.00 0.00
- -------------------------------------------------------- ----------- ----------- -----------
10/31/94 (0.06) 0.00 (0.01)
- -------------------------------------------------------- ----------- ----------- -----------
10/31/93 (0.07) 0.00 (0.02)
- -------------------------------------------------------- ----------- ----------- -----------
10/31/92 (0.10) 0.00 0.00
- -------------------------------------------------------- ----------- ----------- -----------
</TABLE>
*Annualized
(a) Per share amounts based on average number of shares outstanding during
the period.
(b) Unaudited
18 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Distributions
in Excess of Distributions Tax Basis Net Asset
Selected Per Share Data for Net Realized from Return of Total Value End
the Year or Period Ended: Capital Gains Equalization Capital Distributions of Period Total Return
<S> <C> <C> <C> <C> <C> <C>
Emerging Markets Fund
Institutional Class
12/31/97 (b) $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 11.71 (16.12)%
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
06/30/97 0.00 0.00 0.00 (0.06) 13.96 10.85
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
11/01/95-06/30/96 0.00 0.00 0.00 (0.04) 12.66 12.70
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
10/31/95 0.00 0.00 0.00 (0.78) 11.27 (27.70)
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
10/31/94 0.00 0.00 0.00 (0.18) 16.53 36.31
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
06/01/93-10/31/93 0.00 0.00 0.00 (0.28) 12.27 25.55
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
Administrative Class
12/31/97 (b) 0.00 0.00 0.00 0.00 11.68 (16.27)
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
06/30/97 0.00 0.00 0.00 0.00 13.95 10.45
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
11/01/95-06/30/96 0.00 0.00 0.00 (0.03) 12.63 12.70
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
10/31/95 0.00 0.00 0.00 (0.76) 11.24 (27.96)
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
International Developed Fund
Institutional Class
12/31/97 (b) $ 0.00 $ 0.00 $ 0.00 $ (0.69) $ 11.50 (7.09)%
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
06/30/97 0.00 0.00 0.00 (0.61) 13.12 10.07
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
11/01/95-06/30/96 0.00 0.00 0.00 (0.64) 12.54 12.54
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
10/31/95 0.00 0.00 0.00 (0.52) 11.74 3.83
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
10/31/94 0.00 0.00 0.00 (0.07) 11.86 11.68
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
06/08/93-10/31/93 0.00 0.00 0.00 (0.05) 10.69 7.39
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
Administrative Class
12/31/97 (b) 0.00 0.00 0.00 (0.61) 11.51 (7.17)
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
06/30/97 0.00 0.00 0.00 (0.61) 13.05 9.77
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
11/01/95-06/30/96 0.00 0.00 0.00 (0.63) 12.51 12.33
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
11/30/94-10/31/95 0.00 0.00 0.00 (0.51) 11.73 9.61
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
Capital Appreciation Fund
Institutional Class
12/31/97 (b) $ 0.00 $ 0.00 $ 0.00 $ (1.80) $ 22.83 16.17%
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
06/30/97 0.00 0.00 0.00 (2.23) 21.19 31.52
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
11/01/95-06/30/96 0.00 0.00 0.00 (1.18) 18.10 14.65
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
10/31/95 0.00 0.00 0.00 (0.18) 16.94 28.47
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
10/31/94 0.00 0.00 0.00 (0.18) 13.34 0.15
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
10/31/93 0.00 0.00 0.00 (0.61) 13.50 25.30
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
10/31/92 0.00 (0.08) 0.00 (0.94) 11.27 10.75
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
Administrative Class
12/31/97 (b) 0.00 0.00 0.00 (1.82) 22.75 16.02
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
07/31/96-06/30/97 0.00 0.00 0.00 (2.22) 21.16 38.26
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
Mid Cap Growth Fund
Institutional Class
12/31/97 (b) $ 0.00 $ 0.00 $ 0.00 $ (1.41) $ 22.50 17.83%
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
06/30/97 0.00 0.00 0.00 (4.34) 20.28 30.58
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
11/01/95-06/30/96 0.00 0.00 0.00 (0.57) 19.44 10.37
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
10/31/95 0.00 0.00 0.00 (0.07) 18.16 30.54
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
10/31/94 0.00 0.00 0.00 (0.07) 13.97 0.58
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
10/31/93 0.00 0.00 0.00 (0.09) 13.97 24.57
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
10/31/92 0.00 (0.02) 0.00 (0.12) 11.29 10.91
- --------------------------------------- ------------- ------------- ------------ ------------ ------------ ------------
<CAPTION>
Ratio of Net
Ratio of Investment
Net Assets Expenses to Income (Loss) Average
Selected Per Share Data for End of Average Net to Average Portfolio Commission
the Year or Period Ended: Period (000s) Assets Net Assets Turnover Rate Rate
<S> <C> <C> <C> <C> <C>
Emerging Markets Fund
Institutional Class
12/31/97 (b) $ 37,412 1.38%* 0.02%* 34% $ 0.01
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
06/30/97 52,703 1.45 0.45 74 0.00
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
11/01/95-06/30/96 80,545 1.35* 0.84* 74 0.01
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
10/31/95 73,539 1.35 0.57 118 0.03
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
10/31/94 79,620 1.35 (0.06) 79
- --------------------------------------- ------------- ------------- ------------- -------------
06/01/93-10/31/93 14,625 1.34* 0.64* 37
- --------------------------------------- ------------- ------------- ------------- -------------
Administrative Class
12/31/97 (b) 750 1.63* (0.10)* 34 0.01
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
06/30/97 117 1.69 0.02 74 0.00
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
11/01/95-06/30/96 368 1.61* 0.18* 74 0.01
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
10/31/95 830 1.62 0.02 118 N/A
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
International Developed Fund
Institutional Class
12/31/97 (b) $ 86,977 1.11%* 0.55%* 37% $ 0.03
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
06/30/97 94,044 1.13 0.85 77 0.03
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
11/01/95-06/30/96 70,207 1.10* 0.81* 60 0.02
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
10/31/95 63,607 1.10 1.10 63 0.03
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
10/31/94 22,569 1.10 1.12 89
- --------------------------------------- ------------- ------------- ------------- -------------
06/08/93-10/31/93 8,299 1.10* 0.91* 20
- --------------------------------------- ------------- ------------- ------------- -------------
Administrative Class
12/31/97 (b) 1,997 1.36* 0.28* 37 0.03
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
06/30/97 2,302 1.38 0.52 77 0.03
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
11/01/95-06/30/96 5,624 1.35* 1.04* 60 0.02
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
11/30/94-10/31/95 675 1.34* 0.50* 58 N/A
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
Capital Appreciation Fund
Institutional Class
12/31/97 (b) $ 656,315 0.71%* 0.58%* 25% $ 0.05
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
06/30/97 536,187 0.71 1.02 87 0.06
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
11/01/95-06/30/96 348,728 0.70* 1.33* 73 0.04
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
10/31/95 236,220 0.70 1.22 83 0.05
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
10/31/94 165,441 0.70 1.17 77
- --------------------------------------- ------------- ------------- ------------- -------------
10/31/93 84,990 0.70 0.94 81
- --------------------------------------- ------------- ------------- ------------- -------------
10/31/92 36,334 0.70 1.13 134
- --------------------------------------- ------------- ------------- ------------- -------------
Administrative Class
12/31/97 (b) 30,734 0.95* 0.37* 25 0.05
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
07/31/96-06/30/97 3,115 0.96* 0.66* 87 0.06
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
Mid Cap Growth Fund
Institutional Class
12/31/97 (b) $ 392,946 0.71%* 0.46%* 29% $ 0.05
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
06/30/97 291,374 0.71 0.53 82 0.06
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
11/01/95-06/30/96 231,011 0.70* 1.11* 79 0.04
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
10/31/95 189,320 0.70 0.43 78 0.04
- --------------------------------------- ------------- ------------- ------------- ------------- --------------
10/31/94 121,791 0.70 0.45 61
- --------------------------------------- ------------- ------------- ------------- -------------
10/31/93 67,625 0.70 0.56 98
- --------------------------------------- ------------- ------------- ------------- -------------
10/31/92 21,213 0.70 0.87 66
- --------------------------------------- ------------- ------------- ------------- -------------
</TABLE>
*Annualized
(a) Per share amounts based on average number of shares outstanding during
the period.
(b) Unaudited
1997 Semiannual Report See accompanying notes 19
<PAGE>
Financial Highlights - Institutional Classes (Cont.)
<TABLE>
<CAPTION>
Net Asset Net Realized/ Total Dividends Dividends in Distributions
Value Net Unrealized Income from from Net Excess of Net from Net
Selected Per Share Data for Beginning Investment Gain (Loss) on Investment Investment Investment Realized
the Year or Period Ended: of Period Income (Loss) Investments Operations Income Income Capital Gains
<S> <C> <C> <C> <C> <C> <C> <C>
Administrative Class
12/31/97 (b) 20.24 0.03(a) 3.57(a) 3.60 (0.08) 0.00 (1.33)
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
6/30/97 19.44 (0.13) 5.25 5.12 (0.03) 0.00 (4.29)
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
11/01/95-06/30/96 18.17 0.28 1.53 1.81 (0.11) 0.00 (0.43)
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
11/30/94-10/31/95 13.31 0.03 4.85 4.88 (0.02) 0.00 0.00
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Micro Cap Growth Fund
Institutional Class
12/31/97 (b) $ 19.85 $ (0.07)(a) $ 4.21(a) $ 4.14 $ 0.00 $ 0.00 $ (2.62)
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
06/30/97 18.47 0.00 3.41 3.41 0.00 0.00 (2.03)
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
11/01/95-06/30/96 15.38 0.00 3.43 3.43 0.00 0.00 (0.34)
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
10/31/95 11.87 (0.04) 3.55 3.51 0.00 0.00 0.00
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
10/31/94 11.06 (0.03) 0.84 0.81 0.00 0.00 0.00
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
06/25/93-10/31/93 10.00 0.00 1.07 1.07 0.00 0.00 0.00
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Administrative Class
12/31/97 (b) 19.78 (0.10)(a) 4.20(a) 4.10 0.00 0.00 (2.62)
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
06/30/97 18.46 (0.06) 3.41 3.35 0.00 0.00 (2.03)
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
04/01/96-06/30/96 16.73 0.03 1.70 1.73 0.00 0.00 0.00
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Small Cap Growth Fund
Institutional Class
12/31/97 (b) $ 13.40 $ (0.01)(a) $ 1.78(a) $ 1.77 $ 0.00 $ 0.00 $ (1.88)
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
06/30/97 20.83 (0.01)(a) 3.17(a) 3.16 0.00 0.00 (10.59)
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
11/01/95-06/30/96 21.02 2.02 (0.61) 1.41 0.00 0.00 (1.60)
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
10/31/95 19.38 (0.05) 3.12 3.07 0.00 0.00 (1.43)
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
10/31/94 19.15 (0.02) 0.89 0.87 0.00 0.00 (0.64)
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
10/31/93 15.80 (0.06) 6.19 6.13 0.00 0.00 (2.78)
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
10/31/92 14.87 0.01 1.50 1.51 (0.01) 0.00 (0.57)
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Administrative Class
12/31/97 (b) 13.41 0.00(a) 1.75(a) 1.75 0.00 0.00 (1.88)
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
06/30/97 20.82 (0.06)(a) 3.24(a) 3.18 0.00 0.00 (10.59)
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
11/01/95-06/30/96 21.01 2.02(a) (0.61)(a) 1.41 0.00 0.00 (1.60)
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
09/27/95-10/31/95 21.90 (0.02) (0.87) (0.89) 0.00 0.00 0.00
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Renaissance Fund
Institutional Class
12/30/97-12/31/97 (b) $ 16.73 $ 0.00 $ 0.14 $ 0.14 $ 0.00 $ 0.00 $ 0.00
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Core Equity Fund
Institutional Class
12/31/97 (b) $ 15.55 $ 0.02(a) $ 1.73(a) $ 1.75 $ 0.00 $ 0.00 $ (1.30)
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
06/30/97 13.55 0.03(a) 2.78(a) 2.81 (0.02) 0.00 (0.79)
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
11/01/95-06/30/96 12.72 0.51 0.65 1.16 (0.04) (0.01) (0.28)
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
12/28/94-10/31/95 10.00 0.07 2.71 2.78 (0.06) 0.00 0.00
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Administrative Class
12/31/97 (b) 15.53 0.01(a) 1.72(a) 1.73 0.00 0.00 (1.30)
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
06/30/97 13.56 0.00(a) 2.77(a) 2.77 (0.01) 0.00 (0.79)
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
11/01/95-06/30/96 12.73 0.49 0.65 1.14 (0.02) (0.01) (0.28)
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
05/31/95-10/31/95 11.45 0.02 1.28 1.30 (0.02) 0.00 0.00
- ----------------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
</TABLE>
*Annualized
(a) Per share amounts based on average number of shares outstanding during the
period.
(b) Unaudited
20 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Distributions
in Excess of Distributions Tax Basis Net Asset
Selected Per Share Data for Net Realized from Return of Total Value End
the Year or Period Ended: Capital Gains Equalization Capital Distributions of Period Total Return
------------- ------------- --------- ------------- --------- ------------
<S> <C> <C> <C> <C> <C> <C>
Administrative Class
12/31/97 (b) 0.00 0.00 0.00 (1.41) 22.43 17.72
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
6/30/97 0.00 0.00 0.00 (4.32) 20.24 30.23
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
11/01/95-06/30/96 0.00 0.00 0.00 (0.54) 19.44 10.17
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
11/30/94-10/31/95 0.00 0.00 0.00 (0.02) 18.17 36.64
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
Micro Cap Growth Fund
Institutional Class
12/31/97 (b) $ 0.00 $ 0.00 $ 0.00 $ (2.62) $ 21.37 20.99%
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
06/30/97 0.00 0.00 0.00 (2.03) 19.85 20.05
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
11/01/95-06/30/96 0.00 0.00 0.00 (0.34) 18.47 22.64
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
10/31/95 0.00 0.00 0.00 0.00 15.38 29.54
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
10/31/94 0.00 0.00 0.00 0.00 11.87 7.31
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
06/25/93-10/31/93 0.00 0.00 (0.01) (0.01) 11.06 10.81
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
Administrative Class
12/31/97 (b) 0.00 0.00 0.00 (2.62) 21.26 20.85
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
06/30/97 0.00 0.00 0.00 (2.03) 19.78 19.72
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
04/01/96-06/30/96 0.00 0.00 0.00 0.00 18.46 10.34
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
Small Cap Growth Fund
Institutional Class
12/31/97 (b) $ 0.00 $ 0.00 $ 0.00 $ (1.88) $ 13.29 13.20%
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
06/30/97 0.00 0.00 0.00 (10.59) 13.40 22.82
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
11/01/95-06/30/96 0.00 0.00 0.00 (1.60) 20.83 7.22
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
10/31/95 0.00 0.00 0.00 (1.43) 21.02 17.39
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
10/31/94 0.00 0.00 0.00 (0.64) 19.38 4.62
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
10/31/93 0.00 0.00 0.00 (2.78) 19.15 38.80
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
10/31/92 0.00 0.00 0.00 (0.58) 15.80 10.20
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
Administrative Class
12/31/97 (b) 0.00 0.00 0.00 (1.88) 13.28 13.03
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
06/30/97 0.00 0.00 0.00 (10.59) 13.41 23.12
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
11/01/95-06/30/96 0.00 0.00 0.00 (1.60) 20.82 7.18
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
09/27/95-10/31/95 0.00 0.00 0.00 0.00 21.01 (5.34)
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
Renaissance Fund
Institutional Class
12/30/97-12/31/97 (b) $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 16.87 0.83%
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
Core Equity Fund
Institutional Class
12/31/97 (b) $ 0.00 $ 0.00 $ 0.00 $ (1.30) $ 16.00 11.29%
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
06/30/97 0.00 0.00 0.00 (0.81) 15.55 21.59
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
11/01/95-06/30/96 0.00 0.00 0.00 (0.33) 13.55 9.41
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
12/28/94-10/31/95 0.00 0.00 0.00 (0.06) 12.72 27.86
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
Administrative Class
12/31/97 (b) 0.00 0.00 0.00 (1.30) 15.96 11.17
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
06/30/97 0.00 0.00 0.00 (0.80) 15.53 21.20
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
11/01/95-06/30/96 0.00 0.00 0.00 (0.31) 13.56 9.23
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
05/31/95-10/31/95 0.00 0.00 0.00 (0.02) 12.73 11.34
- ---------------------------- ----------- ----------- ---------- ----------- ----------- -----------
<CAPTION>
Ratio of Net
Ratio of Investment
Net Assets Expenses to Income (Loss) Average
Selected Per Share Data for End of Average Net to Average Portfolio Commission
the Year or Period Ended: Period (000s) Assets Net Assets Turnover Rate Rate
------------ ----------- ------------ ------------- ----------
<S> <C> <C> <C> <C> <C>
Administrative Class
12/31/97 (b) 10,577 0.95* 0.25* 29 0.05
- ---------------------------- ----------- ----------- ----------- ----------- -----------
6/30/97 2,066 0.96 0.28 82 0.06
- ---------------------------- ----------- ----------- ----------- ----------- -----------
11/01/95-06/30/96 1,071 0.95* 0.89* 79 0.04
- ---------------------------- ----------- ----------- ----------- ----------- -----------
11/30/94-10/31/95 892 0.94* 0.23* 72 N/A
- ---------------------------- ----------- ----------- ----------- ----------- -----------
Micro Cap Growth Fund
Institutional Class
12/31/97 (b) $210,800 1.51%* (0.59)%* 39% $ 0.05
- ---------------------------- ----------- ----------- ----------- ----------- -----------
06/30/97 164,139 1.52 (0.49) 84 0.05
- ---------------------------- ----------- ----------- ----------- ----------- -----------
11/01/95-06/30/96 83,973 1.50* (0.45)* 54 0.02
- ---------------------------- ----------- ----------- ----------- ----------- -----------
10/31/95 69,775 1.50 (0.37) 87 0.03
- ---------------------------- ----------- ----------- ----------- ----------- -----------
10/31/94 32,605 1.50 (0.25) 59
- ---------------------------- ----------- ----------- ----------- -----------
06/25/93-10/31/93 10,827 1.50* (0.02)* 16
- ---------------------------- ----------- ----------- ----------- -----------
Administrative Class
12/31/97 (b) 3,817 1.76* (0.85)* 39 0.05
- ---------------------------- ----------- ----------- ----------- ----------- -----------
06/30/97 2,116 1.77 (0.74) 84 0.05
- ---------------------------- ----------- ----------- ----------- ----------- -----------
04/01/96-06/30/96 566 1.73* (0.74)* 54 0.02
- ---------------------------- ----------- ----------- ----------- ----------- -----------
Small Cap Growth Fund
Institutional Class
12/31/97 (b) $ 38,933 1.26%* (0.11)%* 40% $ 0.05
- ---------------------------- ----------- ----------- ----------- ----------- -----------
06/30/97 33,390 1.32 (0.05) 129 0.05
- ---------------------------- ----------- ----------- ----------- ----------- -----------
11/01/95-06/30/96 32,954 1.25* (0.20)* 59 0.02
- ---------------------------- ----------- ----------- ----------- ----------- -----------
10/31/95 73,977 1.25 (0.27) 86 0.02
- ---------------------------- ----------- ----------- ----------- ----------- -----------
10/31/94 50,425 1.25 (0.33) 66
- ---------------------------- ----------- ----------- ----------- -----------
10/31/93 43,308 1.25 (0.35) 62
- ---------------------------- ----------- ----------- ----------- -----------
10/31/92 33,734 1.25 0.09 66
- ---------------------------- ----------- ----------- ----------- -----------
Administrative Class
12/31/97 (b) 82 1.51* (0.05)* 40 0.05
- ---------------------------- ----------- ----------- ----------- ----------- -----------
06/30/97 1 1.54 (0.36) 129 0.05
- ---------------------------- ----------- ----------- ----------- ----------- -----------
11/01/95-06/30/96 112 1.50* (0.41)* 59 0.02
- ---------------------------- ----------- ----------- ----------- ----------- -----------
09/27/95-10/31/95 544 1.60* (0.82)* 9 N/A
- ---------------------------- ----------- ----------- ----------- ----------- -----------
Renaissance Fund
Institutional Class
12/30/97-12/31/97 (b) $ 586 0.86%* 0.04%* 105% $ 0.06
- ---------------------------- ----------- ----------- ----------- ----------- -----------
Core Equity Fund
Institutional Class
12/31/97 (b) $ 4,277 0.83%* 0.27%* 79% $ 0.06
- ---------------------------- ----------- ----------- ----------- ----------- -----------
06/30/97 6,444 0.87 0.23 139 0.06
- ---------------------------- ----------- ----------- ----------- ----------- -----------
11/01/95-06/30/96 10,452 0.82* 0.53* 73 0.04
- ---------------------------- ----------- ----------- ----------- ----------- -----------
12/28/94-10/31/95 7,791 0.82* 0.79* 123 0.03
- ---------------------------- ----------- ----------- ----------- ----------- -----------
Administrative Class
12/31/97 (b) 95,843 1.07* 0.12* 79 0.06
- ---------------------------- ----------- ----------- ----------- ----------- -----------
06/30/97 29,332 1.13 (0.03) 139 0.06
- ---------------------------- ----------- ----------- ----------- ----------- -----------
11/01/95-06/30/96 33,575 1.07* 0.28* 73 0.04
- ---------------------------- ----------- ----------- ----------- ----------- -----------
05/31/95-10/31/95 24,645 1.06* 0.34* 58 N/A
- ---------------------------- ----------- ----------- ----------- ----------- -----------
</TABLE>
*Annualized
(a) Per share amounts based on average number of shares outstanding during the
period.
(b) Unaudited
1997 Semiannual Report See accompanying notes 21
<PAGE>
Financial Highlights - Institutional Classes (Cont.)
<TABLE>
<CAPTION>
Net Asset Net Realized/ Total Dividends Dividends in Distributions
Value Net Unrealized Income from from Net Excess of Net from Net
Selected Per Share Data for Beginning Investment Gain (Loss) on Investment Investment Investment Realized
the Year or Period Ended: of Period Income (Loss) Investments Operations Income Income Capital Gains
------------- ------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Mid Cap Equity Fund
Institutional Class
12/31/97 (b) $ 14.04 $ (0.02)(a) $ 1.33(a) $ 1.31 $ 0.00 $ 0.00 $ (4.09)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
06/30/97 14.66 (0.06)(a) 1.31(a) 1.25 0.00 0.00 (1.87)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
11/01/95-06/30/96 12.92 0.49 1.62 2.11 0.00 0.00 (0.37)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
12/28/94-10/31/95 10.00 0.02 2.92 2.94 (0.02) 0.00 0.00
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Administrative Class
08/21/97-12/31/97 (b) 15.27 (0.02)(a) 0.09(a) 0.07 0.00 0.00 (4.09)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Equity Income Fund
Institutional Class
12/31/97 (b) $ 15.41 $ 0.23(a) $ 1.93(a) $ 2.16 $ (0.25) $ 0.00 $ (2.09)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
06/30/97 14.36 0.40 3.17 3.57 (0.55) 0.00 (1.97)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
11/01/95-06/30/96 13.09 0.78 1.31 2.09 (0.34) 0.00 (0.48)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/95 11.75 0.46 1.67 2.13 (0.46) 0.00 (0.33)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/94 11.95 0.42 (0.16) 0.26 (0.42) 0.00 (0.04)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/93 10.92 0.40 1.40 1.80 (0.40) 0.00 (0.37)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/92 10.77 0.45 0.93 1.38 (0.43) 0.00 (0.57)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Administrative Class
12/31/97 (b) 15.40 0.21(a) 1.93(a) 2.14 (0.23) 0.00 (2.09)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
06/30/97 14.35 0.27 3.26 3.53 (0.51) 0.00 (1.97)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
11/01/95-06/30/96 13.13 0.75 1.31 2.06 (0.36) 0.00 (0.48)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
11/30/94-10/31/95 11.12 0.39 2.35 2.74 (0.40) 0.00 (0.33)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Value Fund
Institutional Class
12/31/97 (b) $ 14.81 $ 0.12(a) $ 1.38(a) $ 1.50 $ (0.13) $ 0.00 $ (1.63)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
06/30/97 12.46 1.05 2.11 3.16 (0.31) 0.00 (0.50)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
11/01/95-06/30/96 12.53 0.25 1.62 1.87 (0.17) 0.00 (1.77)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/95 11.55 0.30 2.18 2.48 (0.30) 0.00 (1.20)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/94 11.92 0.30 (0.28) 0.02 (0.29) 0.00 (0.10)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/93 10.05 0.28 2.36 2.64 (0.28) 0.00 (0.49)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
12/30/91-10/31/92 10.00 0.24 0.23 0.47 (0.24) 0.00 (0.18)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Administrative Class
08/21/97-12/31/97 (b) 15.66 0.07(a) 0.58(a) 0.65 (0.13) 0.00 (1.63)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Small Cap Value Fund
Institutional Class
12/31/97 (b) $ 15.78 $ 0.16(a) $ 2.60(a) $ 2.76 $ (0.13) $ 0.00 $ (0.76)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
06/30/97 14.20 0.46 3.63 4.09 (0.13) 0.00 (2.38)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
11/01/95-06/30/96 13.10 0.56 1.49 2.05 (0.21) 0.00 (0.74)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/95 12.07 0.28 1.92 2.20 (0.28) 0.00 (0.89)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/94 12.81 0.29 (0.65) (0.36) (0.29) 0.00 (0.09)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/93 10.98 0.24 2.33 2.57 (0.24) 0.00 (0.50)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/92 10.09 0.22 1.17 1.39 (0.22) 0.00 (0.24)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Administrative Class
12/31/97 (b) 15.76 0.14(a) 2.59(a) 2.73 (0.11) 0.00 (0.76)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
06/30/97 14.20 0.38 3.68 4.06 (0.12) 0.00 (2.38)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
11/01/95-06/30/96 13.16 0.54 1.43 1.97 (0.19) 0.00 (0.74)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
*Annualized
(a) Per share amounts based on average number of shares outstanding during the
period.
(b) Unaudited
22 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Distributions
In Excess of Distributions Tax Basis Net Asset
Selected Per Share Data for Net Realized from Return of Total Value End
the Year or Period Ended: Capital Gains Equalization Capital Distributions of Period Total Return
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Mid Cap Equity Fund
Institutional Class
12/31/97 (b) $ 0.00 $ 0.00 $ 0.00 $ (4.09) $ 11.26 8.52%
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
06/30/97 0.00 0.00 0.00 (1.87) 14.04 9.61
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
11/01/95-06/30/96 0.00 0.00 0.00 (0.37) 14.66 16.72
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
12/28/94-10/31/95 0.00 0.00 0.00 (0.02) 12.92 29.34
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Administrative Class
08/21/97-12/31/97 (b) 0.00 0.00 0.00 (4.09) 11.25 (0.29)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Equity Income Fund
Institutional Class
12/31/97 (b) $ 0.00 $ 0.00 $ 0.00 $ (2.34) $ 15.23 14.13%
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
06/30/97 0.00 0.00 0.00 (2.52) 15.41 27.67
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
11/01/95-06/30/96 0.00 0.00 0.00 (0.82) 14.36 16.35
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/95 0.00 0.00 0.00 (0.79) 13.09 19.36
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/94 0.00 0.00 0.00 (0.46) 11.75 2.25
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/93 0.00 0.00 0.00 (0.77) 11.95 16.65
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/92 0.00 (0.23) 0.00 (1.23) 10.92 12.89
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Administrative Class
12/31/97 (b) 0.00 0.00 0.00 (2.32) 15.22 14.01
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
06/30/97 0.00 0.00 0.00 (2.48) 15.40 27.40
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
11/01/95-06/30/96 0.00 0.00 0.00 (0.84) 14.35 16.08
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
11/30/94-10/31/95 0.00 0.00 0.00 (0.73) 13.13 25.69
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Value Fund
Institutional Class
12/31/97 (b) $ 0.00 $ 0.00 $ 0.00 $ (1.76) $ 14.55 10.17%
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
06/30/97 0.00 0.00 0.00 (0.81) 14.81 26.38
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
11/01/95-06/30/96 0.00 0.00 0.00 (1.94) 12.46 16.24
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/95 0.00 0.00 0.00 (1.50) 12.53 24.98
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/94 0.00 0.00 0.00 (0.39) 11.55 0.15
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/93 0.00 0.00 0.00 (0.77) 11.92 26.35
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
12/30/91-10/31/92 0.00 0.00 0.00 (0.42) 10.05 4.68
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Administrative Class
08/21/97-12/31/97 (b) 0.00 0.00 0.00 (1.76) 14.55 4.19
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Small Cap Value Fund
Institutional Class
12/31/97 (b) $ 0.00 $ 0.00 $ 0.00 $ (0.89) $ 17.65 17.57%
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
06/30/97 0.00 0.00 0.00 (2.51) 15.78 31.99
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
11/01/95-06/30/96 0.00 0.00 0.00 (0.95) 14.20 16.35
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/95 0.00 0.00 0.00 (1.17) 13.10 19.88
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/94 0.00 0.00 0.00 (0.38) 12.07 (2.89)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/93 0.00 0.00 0.00 (0.74) 12.81 23.60
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/92 0.00 (0.04) 0.00 (0.50) 10.98 13.75
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Administrative Class
12/31/97 (b) 0.00 0.00 0.00 (0.87) 17.62 17.35
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
06/30/97 0.00 0.00 0.00 (2.50) 15.76 31.70
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
11/01/95-06/30/96 0.00 0.00 0.00 (0.93) 14.20 15.64
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
<TABLE>
<CAPTION>
Ratio of Net
Ratio of Investment
Net Assets Expenses to Income (Loss) Average
Selected Per Share Data for End of Average Net to Average Portfolio Commission
the Year or Period Ended: Period (000s) Assets Net Assets Turnover Rate Rate
- ---------------------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Mid Cap Equity Fund
Institutional Class
12/31/97 (b) $ 6,845 0.89%* (0.24)%* 146% $ 0.06
- ---------------------------- ------------- ------------- ------------- ------------- -------------
06/30/97 7,591 1.15 (0.43) 202 0.06
- ---------------------------- ------------- ------------- ------------- ------------- -------------
11/01/95-06/30/96 8,378 0.88* (0.32)* 97 0.03
- ---------------------------- ------------- ------------- ------------- ------------- -------------
12/28/94-10/31/95 8,357 0.88* 0.24* 132 0.04
- ---------------------------- ------------- ------------- ------------- ------------- -------------
Administrative Class
08/21/97-12/31/97 (b) 550 1.13* (0.48)* 146 0.06
- ---------------------------- ------------- ------------- ------------- ------------- -------------
Equity Income Fund
Institutional Class
12/31/97 (b) $ 133,405 0.71%* 2.82%* 17% $ 0.06
- ---------------------------- ------------- ------------- ------------- ------------- -------------
06/30/97 121,138 0.72 3.03 45 0.06
- ---------------------------- ------------- ------------- ------------- ------------- -------------
11/01/95-06/30/96 116,714 0.70* 3.41* 52 0.06
- ---------------------------- ------------- ------------- ------------- ------------- -------------
10/31/95 118,015 0.70 3.83 46 0.06
- ---------------------------- ------------- ------------- ------------- ------------- -------------
10/31/94 92,365 0.70 3.77 36
- ---------------------------- ------------- ------------- ------------- -------------
10/31/93 67,854 0.70 3.55 39
- ---------------------------- ------------- ------------- ------------- -------------
10/31/92 30,506 0.70 3.83 47
- ---------------------------- ------------- ------------- ------------- -------------
Administrative Class
12/31/97 (b) 9,877 0.96* 2.57* 17 0.06
- ---------------------------- ------------- ------------- ------------- ------------- -------------
06/30/97 8,145 0.97 2.79 45 0.06
- ---------------------------- ------------- ------------- ------------- ------------- -------------
11/01/95-06/30/96 6,097 0.95* 3.19* 52 0.06
- ---------------------------- ------------- ------------- ------------- ------------- -------------
11/30/94-10/31/95 140 0.95* 3.43* 43 N/A
- ---------------------------- ------------- ------------- ------------- ------------- -------------
Value Fund
Institutional Class
12/31/97 (b) $ 77,926 0.71%* 1.57%* 33% $ 0.06
- ---------------------------- ------------- ------------- ------------- ------------- -------------
06/30/97 74,613 0.73 2.02 71 0.06
- ---------------------------- ------------- ------------- ------------- ------------- -------------
11/01/95-06/30/96 52,727 0.70* 2.40* 29 0.06
- ---------------------------- ------------- ------------- ------------- ------------- -------------
10/31/95 14,443 0.70 2.50 71 0.06
- ---------------------------- ------------- ------------- ------------- ------------- -------------
10/31/94 15,442 0.70 2.34 44
- ---------------------------- ------------- ------------- ------------- -------------
10/31/93 22,930 0.70 2.43 28
- ---------------------------- ------------- ------------- ------------- -------------
12/30/91-10/31/92 18,083 0.70* 2.57* 73
- ---------------------------- ------------- ------------- ------------- -------------
Administrative Class
08/21/97-12/31/97 (b) 4,245 0.95* 1.31* 33 0.06
- ---------------------------- ------------- ------------- ------------- ------------- -------------
Small Cap Value Fund
Institutional Class
12/31/97 (b) $ 46,841 0.86%* 1.79%* 18% $ 0.06
- ---------------------------- ------------- ------------- ------------- ------------- -------------
06/30/97 34,639 0.90 1.92 48 0.06
- ---------------------------- ------------- ------------- ------------- ------------- -------------
11/01/95-06/30/96 29,017 0.85* 2.12* 35 0.04
- ---------------------------- ------------- ------------- ------------- ------------- -------------
10/31/95 35,093 0.85 2.25 50 0.04
- ---------------------------- ------------- ------------- ------------- ------------- -------------
10/31/94 31,236 0.85 2.23 48
- ---------------------------- ------------- ------------- ------------- -------------
10/31/93 46,523 0.85 2.05 42
- ---------------------------- ------------- ------------- ------------- -------------
10/31/92 18,261 0.85 2.16 27
- ---------------------------- ------------- ------------- ------------- -------------
Administrative Class
12/31/97 (b) 9,096 1.11* 1.54* 18 0.06
- ---------------------------- ------------- ------------- ------------- ------------- -------------
06/30/97 5,916 1.16 1.68 48 0.06
- ---------------------------- ------------- ------------- ------------- ------------- -------------
11/01/95-06/30/96 4,433 1.10* 1.86* 35 0.04
- ---------------------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
*Annualized
(a) Per share amounts based on average number of shares outstanding during the
period.
(b) Unaudited
1997 Semiannual Report See accompanying notes 23
<PAGE>
Financial Highlights - Institutional Classes (Cont.)
<TABLE>
<CAPTION>
Net Asset Net Realized/ Total Dividends Dividends in Distributions
Value Net Unrealized Income from from Net Excess of Net from Net
Selected Per Share Data for Beginning Investment Gain (Loss) on Investment Investment Investment Realized
the Year or Period Ended: of Period Income (Loss) Investments Operations Income Income Capital Gains
------------- ------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Enhanced Equity Fund
Institutional Class
12/31/97 (b) $ 16.46 $ 0.07(a) $ 1.94(a) $ 2.01 $ (0.11) $ 0.00 $ (7.73)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
06/30/97 15.91 1.18 3.10 4.28 (0.10) 0.00 (3.63)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
11/01/95-06/30/96 14.44 0.34 1.67 2.01 (0.16) 0.00 (0.38)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/95 11.99 0.25 2.62 2.87 (0.25) 0.00 (0.17)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/94 12.08 0.25 (0.04) 0.21 (0.25) 0.00 (0.05)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/93 11.76 0.23 0.74 0.97 (0.23) 0.00 (0.42)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/92 10.80 0.16 1.06 1.22 (0.16) 0.00 (0.04)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Administrative Class
08/21/97-12/31/97 (b) 17.53 0.03(a) 0.89(a) 0.92 (0.11) 0.00 (7.73)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Balanced Fund
Institutional Class
12/31/97 (b) $ 11.42 $ 0.18(a) $ 0.99(a) $ 1.17 $ (0.20) $ 0.00 $ (1.09)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
06/30/97 11.64 0.89 1.21 2.10 (0.36) 0.00 (1.96)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
11/01/95-06/30/96 11.89 0.27 0.76 1.03 (0.27) 0.00 (1.01)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/95 10.35 0.44 1.54 1.98 (0.44) 0.00 0.00
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/94 10.84 0.34 (0.34) 0.00 (0.34) 0.00 (0.15)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/93 10.42 0.35 0.68 1.03 (0.35) 0.00 (0.26)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
06/25/92-10/31/92 10.00 0.12 0.52 0.64 (0.12) 0.00 (0.10)
- ---------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
*Annualized
(a) Per share amounts based on average number of shares outstanding during the
period.
(b) Unaudited
24 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Distributions
In Excess of Distributions Tax Basis Net Asset
Selected Per Share Data for Net Realized from Return of Total Value End
the Year or Period Ended: Capital Gains Equalization Capital Distributions of Period Total Return
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Enhanced Equity Fund
Institutional Class
12/31/97 (b) $ 0.00 $ 0.00 $ 0.00 $ (7.84) $ 10.63 11.29%
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
06/30/97 0.00 0.00 0.00 (3.73) 16.46 31.45
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
11/01/95-06/30/96 0.00 0.00 0.00 (0.54) 15.91 14.21
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/95 0.00 0.00 0.00 (0.42) 14.44 24.46
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/94 0.00 0.00 0.00 (0.30) 11.99 1.83
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/93 0.00 0.00 0.00 (0.65) 12.08 8.20
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/92 0.00 (0.06) 0.00 (0.26) 11.76 11.46
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Administrative Class
08/21/97-12/31/97 (b) 0.00 0.00 0.00 (7.84) 10.61 4.37
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Balanced Fund
Institutional Class
12/31/97 (b) $ 0.00 $ 0.00 $ 0.00 $ (1.29) $ 11.30 10.22%
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
06/30/97 0.00 0.00 0.00 (2.32) 11.42 20.37
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
11/01/95-06/30/96 0.00 0.00 0.00 (1.28) 11.64 9.07
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/95 0.00 0.00 0.00 (0.44) 11.89 19.47
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/94 0.00 0.00 0.00 (0.49) 10.35 0.08
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
10/31/93 0.00 0.00 0.00 (0.61) 10.84 10.06
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
06/25/92-10/31/92 0.00 0.00 0.00 (0.22) 10.42 6.40
- ---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
<TABLE>
<CAPTION>
Ratio of Net
Ratio of Investment
Net Assets Expenses to Income (Loss) Average
Selected Per Share Data for End of Average Net to Average Portfolio Commission
the Year or Period Ended: Period (000s) Assets Net Assets Turnover Rate Rate
- ---------------------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Enhanced Equity Fund
Institutional Class
12/31/97 (b) $ 40,413 0.71%* 0.83%* 24% $ 0.04
- ---------------------------- ------------- ------------- ------------- ------------- -------------
06/30/97 44,838 0.74 1.31 91 0.06
- ---------------------------- ------------- ------------- ------------- ------------- -------------
11/01/95-06/30/96 83,425 0.70* 1.58* 53 0.05
- ---------------------------- ------------- ------------- ------------- ------------- -------------
10/31/95 73,999 0.70 1.91 21 0.05
- ---------------------------- ------------- ------------- ------------- ------------- -------------
10/31/94 65,915 0.70 2.20 44
- ---------------------------- ------------- ------------- ------------- -------------
10/31/93 46,724 0.70 1.89 15
- ---------------------------- ------------- ------------- ------------- -------------
10/31/92 36,515 0.70 1.81 17
- ---------------------------- ------------- ------------- ------------- -------------
Administrative Class
08/21/97-12/31/97 (b) 2,926 0.96* 0.59* 24 0.04
- ---------------------------- ------------- ------------- ------------- ------------- -------------
Balanced Fund
Institutional Class
12/31/97 (b) $ 52,357 0.71%* 3.00%* 85% $ 0.06
- ---------------------------- ------------- ------------- ------------- ------------- -------------
06/30/97 61,518 0.74 3.33 199 0.06
- ---------------------------- ------------- ------------- ------------- ------------- -------------
11/01/95-06/30/96 82,562 0.70* 3.46* 140 0.05
- ---------------------------- ------------- ------------- ------------- ------------- -------------
10/31/95 72,638 0.70 3.73 43 0.04
- ---------------------------- ------------- ------------- ------------- ------------- -------------
10/31/94 130,694 0.70 3.25 47
- ---------------------------- ------------- ------------- ------------- -------------
10/31/93 126,410 0.70 3.10 19
- ---------------------------- ------------- ------------- ------------- -------------
06/25/92-10/31/92 99,198 0.70* 3.36* 39
- ---------------------------- ------------- ------------- ------------- -------------
</TABLE>
*Annualized
(a) Per share amounts based on average number of shares outstanding during the
period.
(b) Unaudited
1997 Semiannual Report See accompanying notes 25
<PAGE>
Statement of Assets and Liabilities
December 31, 1997 (Unaudited)
<TABLE>
<CAPTION>
Emerging International Capital Mid Cap Micro Cap
Amounts in thousands, except per share amounts Markets Fund Developed Fund Appreciation Fund Growth Fund Growth Fund
------------- --------------- ------------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Assets:
Investments, at value $ 40,449 $ 94,413 $ 762,587 $ 601,188 $ 224,744
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
Cash and foreign currency 352 1,392 0 (23) 0
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
Receivable for investments and foreign currency sold 104 126 1,483 226 494
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
Receivable for Fund shares sold 150 113 2,065 4,003 128
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
Interest and dividends receivable 57 117 553 304 34
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
Variation margin receivable 0 0 0 0 0
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
41,112 96,161 766,688 605,698 225,400
==================================================== ============= =============== ================== ============ ============
Liabilities:
Payable for investments and foreign currency
purchased $ 66 $ 592 $ 13,011 $ 31,672 $ 10,440
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
Written options outstanding 0 0 0 0 0
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
Payable for Fund shares redeemed 630 294 264 2,702 70
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
Dividends payable 3 3 13 58 0
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
Accrued investment advisor's fee 29 50 285 213 227
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
Accrued administrator's fee 17 42 166 139 45
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
Accrued distribution and/or servicing fee 2 5 50 121 1
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
Other liabilities 0 0 0 28 0
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
747 986 13,789 34,933 10,783
==================================================== ============= =============== ================== ============ ============
Net Assets $ 40,365 $ 95,175 $ 752,899 $ 570,765 $ 214,617
==================================================== ============= =============== ================== ============ ============
Net Assets Consist of:
Paid in capital $ 51,988 $ 93,081 $ 557,139 $ 435,081 $ 156,007
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
Undistributed (overdistributed) net investment
income (76) 491 6,647 (536) (608)
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
Accumulated undistributed net realized gain (loss) (16,428) (6,160) 6,915 6,485 3,499
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
Net unrealized appreciation (depreciation) 4,881 7,763 182,198 129,735 55,719
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
$ 40,365 $ 95,175 $ 752,899 $ 570,765 $ 214,617
==================================================== ============= =============== ================== ============ ============
Shares Issued and Outstanding:
Institutional Class 3,195 7,560 28,752 17,464 9,866
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
Administrative Class 64 174 1,351 472 180
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
Retail Classes 190 543 2,904 7,485 0
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
Net Asset Value and Redemption Price* Per Share
(Net Assets Per Share Outstanding):
Institutional Class $ 11.71 $ 11.50 $ 22.83 $ 22.50 $ 21.37
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
Administrative Class 11.68 11.51 22.75 22.43 21.26
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
Class A 11.67 11.46 22.77 22.45 0
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
Class B 11.59 11.43 22.63 22.33 0
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
Class C 11.59 11.43 22.65 22.33 0
- ---------------------------------------------------- ------------- --------------- ------------------ ------------ ------------
Cost of Investments Owned 35,568 86,696 580,390 471,453 169,025
==================================================== ============= =============== ================== ============ ============
Cost of Foreign Currency Held 347 1,401 0 0 0
==================================================== ============= =============== ================== ============ ============
</TABLE>
* With respect to the Retail Classes, the redemption price may vary by the
length of time shares are held.
26 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Small Cap Mid Cap Equity
Amounts in thousands, except per share amounts Growth Fund Renaissance Fund Core Equity Fund Equity Fund Income Fund
------------ ---------------- ---------------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Assets:
Investments, at value $ 39,747 $ 475,046 $ 100,873 $ 7,616 $ 171,986
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
Cash and foreign currency 61 132 0 1 1
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
Receivable for investments and foreign currency sold 55 6,165 0 0 0
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
Receivable for Fund shares sold 0 3,203 21 0 692
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
Interest and dividends receivable 37 681 36 2 607
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
Variation margin receivable 0 0 0 0 0
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
39,900 485,227 100,930 7,619 173,286
==================================================== ============ ================ ================ =========== ===========
Liabilities:
Payable for investments and foreign currency
purchased $ 844 $ 10,424 $ 687 $ 218 $ 0
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
Written options outstanding 0 0 34 0 0
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
Payable for Fund shares redeemed 0 2,624 0 0 1,012
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
Dividends payable 0 300 0 0 9
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
Accrued investment advisor's fee 33 237 49 4 67
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
Accrued administrator's fee 8 158 21 2 41
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
Accrued distribution and/or servicing fee 0 367 19 0 19
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
Other liabilities 0 14 0 0 0
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
885 14,124 810 224 1,148
==================================================== ============ ================ ================ =========== ===========
Net Assets $ 39,015 $ 471,103 $ 100,120 $ 7,395 $ 172,138
==================================================== ============ ================ ================ =========== ===========
Net Assets Consist of:
Paid in capital $ 29,303 $ 390,763 $ 92,126 $ 6,977 $ 134,334
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
Undistributed (overdistributed) net investment income 251 28,159 2,376 464 2,045
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
Accumulated undistributed net realized gain (loss) 421 (18,356) (4,149) (446) 2,323
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
Net unrealized appreciation (depreciation) 9,040 70,537 9,767 400 33,436
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
$ 39,015 $ 471,103 $ 100,120 $ 7,395 $ 172,138
==================================================== ============ ================ ================ =========== ===========
Shares Issued and Outstanding:
Institutional Class 2,930 35 267 608 8,759
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
Administrative Class 6 0 6,005 49 649
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
Retail Classes 0 27,860 0 0 1,903
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
Net Asset Value and Redemption Price* Per Share
(Net Assets Per Share Outstanding):
Institutional Class $ 13.29 $ 16.87 $ 16.00 $ 11.26 $ 15.23
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
Administrative Class 13.28 0 15.96 11.25 15.22
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
Class A 0 16.94 0 0 15.19
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
Class B 0 16.96 0 0 15.15
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
Class C 0 16.87 0 0 15.16
- ---------------------------------------------------- ------------ ---------------- ---------------- ----------- -----------
Cost of Investments Owned 30,706 404,509 91,098 7,216 138,549
==================================================== ============ ================ ================ =========== ===========
Cost of Foreign Currency Held 0 0 0 0 0
==================================================== ============ ================ ================ =========== ===========
<CAPTION>
Small Cap Enhanced
Value Fund Value Fund Equity Fund Balanced Fund
----------- ----------- ------------ --------------
<S> <C> <C> <C> <C>
Assets:
Investments, at value $ 206,000 $ 235,687 $ 43,308 $ 74,937
- ----------------------------------------------------- ----------- ----------- ------------ --------------
Cash and foreign currency 1 1 1 2
- ----------------------------------------------------- ----------- ----------- ------------ --------------
Receivable for investments and foreign currency sold 16,046 294 0 3,522
- ----------------------------------------------------- ----------- ----------- ------------ --------------
Receivable for Fund shares sold 714 4,646 1 591
- ----------------------------------------------------- ----------- ----------- ------------ --------------
Interest and dividends receivable 451 420 55 224
- ----------------------------------------------------- ----------- ----------- ------------ --------------
Variation margin receivable 0 0 0 27
- ----------------------------------------------------- ----------- ----------- ------------ --------------
223,212 241,048 43,365 79,303
===================================================== =========== =========== ============ ==============
Liabilities:
Payable for investments and foreign currency
purchased $ 14,778 $ 4,974 $ 0 $ 12,754
- ----------------------------------------------------- ----------- ----------- ------------ --------------
Written options outstanding 0 0 0 0
- ----------------------------------------------------- ----------- ----------- ------------ --------------
Payable for Fund shares redeemed 175 193 0 0
- ----------------------------------------------------- ----------- ----------- ------------ --------------
Dividends payable 45 28 0 1
- ----------------------------------------------------- ----------- ----------- ------------ --------------
Accrued investment advisor's fee 80 113 16 26
- ----------------------------------------------------- ----------- ----------- ------------ --------------
Accrued administrator's fee 60 68 9 16
- ----------------------------------------------------- ----------- ----------- ------------ --------------
Accrued distribution and/or servicing fee 96 125 1 7
- ----------------------------------------------------- ----------- ----------- ------------ --------------
Other liabilities 13 0 0 0
- ----------------------------------------------------- ----------- ----------- ------------ --------------
15,247 5,501 26 12,804
===================================================== =========== =========== ============ ==============
Net Assets $ 207,965 $ 235,547 $ 43,339 $ 66,499
===================================================== =========== =========== ============ ==============
Net Assets Consist of:
Paid in capital $ 177,423 $ 210,786 $ 33,268 $ 55,689
- ----------------------------------------------------- ----------- ----------- ------------ --------------
Undistributed (overdistributed) net investment income 6,582 1,478 3,178 2,770
- ----------------------------------------------------- ----------- ----------- ------------ --------------
Accumulated undistributed net realized gain (loss) (1,796) 2,483 (2,938) (336)
- ----------------------------------------------------- ----------- ----------- ------------ --------------
Net unrealized appreciation (depreciation) 25,756 20,800 9,831 8,376
- ----------------------------------------------------- ----------- ----------- ------------ --------------
$ 207,965 $ 235,547 $ 43,339 $ 66,499
===================================================== =========== =========== ============ ==============
Shares Issued and Outstanding:
Institutional Class 5,357 2,655 3,800 4,634
- ----------------------------------------------------- ----------- ----------- ------------ --------------
Administrative Class 292 516 276 0
- ----------------------------------------------------- ----------- ----------- ------------ --------------
Retail Classes 8,661 10,257 0 1,257
- ----------------------------------------------------- ----------- ----------- ------------ --------------
Net Asset Value and Redemption Price* Per Share
(Net Assets Per Share Outstanding):
Institutional Class $ 14.55 $ 17.65 $ 10.63 $ 11.30
- ----------------------------------------------------- ----------- ----------- ------------ --------------
Administrative Class 14.55 17.62 10.61 0
- ----------------------------------------------------- ----------- ----------- ------------ --------------
Class A 14.54 17.58 0 11.26
- ----------------------------------------------------- ----------- ----------- ------------ --------------
Class B 14.53 17.49 0 11.23
- ----------------------------------------------------- ----------- ----------- ------------ --------------
Class C 14.52 17.50 0 11.24
- ----------------------------------------------------- ----------- ----------- ------------ --------------
Cost of Investments Owned 180,244 214,887 33,477 66,629
===================================================== =========== =========== ============ ==============
Cost of Foreign Currency Held 0 0 0 0
===================================================== =========== =========== ============ ==============
</TABLE>
* With respect to the Retail Classes, the redemption price may vary by the
length of time shares are held.
1997 Semiannual Report See accompanying notes 27
<PAGE>
Statement of Operations
For the six months ended December 31, 1997 (Unaudited)
<TABLE>
<CAPTION>
$ in thousands Emerging International Capital
Markets Fund Developed Fund Appreciation Fund
------------ -------------- -----------------
<S> <C> <C> <C>
Investment Income:
Dividends, net of foreign taxes $ 249 $ 579 $ 3,474
- --------------------------------------------------------------------- ------------ -------------- -----------------
Interest 96 225 876
- --------------------------------------------------------------------- ------------ -------------- -----------------
Total Income 345 804 4,350
===================================================================== ============ ============== =================
Expenses:
Investment advisory fees 208 291 1,512
- --------------------------------------------------------------------- ------------ -------------- -----------------
Administration fees 125 246 871
- --------------------------------------------------------------------- ------------ -------------- -----------------
Distribution and/or servicing fees - Administrative Class 1 2 19
- --------------------------------------------------------------------- ------------ -------------- -----------------
Distribution and/or servicing fees - Retail Classes 11 26 168
- --------------------------------------------------------------------- ------------ -------------- -----------------
Trustees' fees 3 5 30
- --------------------------------------------------------------------- ------------ -------------- -----------------
Miscellaneous 4 1 0
- --------------------------------------------------------------------- ------------ -------------- -----------------
Total Expenses 352 571 2,600
- --------------------------------------------------------------------- ------------ -------------- -----------------
Net Investment Income (Loss) (7) 233 1,750
===================================================================== ============ ============== =================
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investments (5,951) (3,205) 34,094
- --------------------------------------------------------------------- ------------ -------------- -----------------
Net realized gain (loss) on futures contracts and written options 0 0 0
- --------------------------------------------------------------------- ------------ -------------- -----------------
Net realized gain (loss) on foreign currency transactions (130) (515) 0
- --------------------------------------------------------------------- ------------ -------------- -----------------
Net change in unrealized appreciation
(depreciation) on investments (3,036) (3,238) 57,536
- --------------------------------------------------------------------- ------------ -------------- -----------------
Net change in unrealized appreciation
(depreciation) on futures contracts and written options 0 0 0
- --------------------------------------------------------------------- ------------ -------------- -----------------
Net change in unrealized appreciation
(depreciation) on translation of assets and liabilities
denominated in foreign currencies (1) 73 0
- --------------------------------------------------------------------- ------------ -------------- -----------------
Net Gain (Loss) (9,118) (6,885) 91,630
- --------------------------------------------------------------------- ------------ -------------- -----------------
Net Increase (Decrease) in Assets Resulting from Operations $ (9,125) $ (6,652) $ 93,380
===================================================================== ============ ============== =================
<CAPTION>
$ in thousands Mid Cap Micro Cap
Growth Fund Growth Fund
----------- -----------
<S> <C> <C>
Investment Income:
Dividends, net of foreign taxes $ 2,087 $ 506
- --------------------------------------------------------------------- ----------- -----------
Interest 760 423
- --------------------------------------------------------------------- ----------- -----------
Total Income 2,847 929
===================================================================== =========== ===========
Expenses:
Investment advisory fees 1,094 1,270
- --------------------------------------------------------------------- ----------- -----------
Administration fees 704 254
- --------------------------------------------------------------------- ----------- -----------
Distribution and/or servicing fees - Administrative Class 7 4
- --------------------------------------------------------------------- ----------- -----------
Distribution and/or servicing fees - Retail Classes 576 0
- --------------------------------------------------------------------- ----------- -----------
Trustees' fees 21 9
- --------------------------------------------------------------------- ----------- -----------
Miscellaneous 0 0
- --------------------------------------------------------------------- ----------- -----------
Total Expenses 2,402 1,537
- --------------------------------------------------------------------- ----------- -----------
Net Investment Income (Loss) 445 (608)
===================================================================== =========== ===========
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investments 23,995 19,047
- --------------------------------------------------------------------- ----------- -----------
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 47,693 18,317
- --------------------------------------------------------------------- ----------- -----------
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) 71,688 37,364
- --------------------------------------------------------------------- ----------- -----------
Net Increase (Decrease) in Assets Resulting from Operations $ 72,133 $ 36,756
===================================================================== =========== ===========
</TABLE>
28 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
$ in thousands
Small Cap Renaissance Core Mid Cap
Growth Fund Fund Equity Fund Equity Fund
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Investment Income:
Dividends, net of foreign taxes $ 179 $ 3,334 $ 200 $ 16
- ----------------------------------------------------------------- ----------- ----------- ----------- -----------
Interest 37 840 195 11
- ----------------------------------------------------------------- ----------- ----------- ----------- -----------
Total Income 216 4,174 395 27
================================================================= =========== =========== =========== ===========
Expenses:
Investment advisory fees 188 1,322 189 27
- ----------------------------------------------------------------- ----------- ----------- ----------- -----------
Administration fees 47 881 83 10
- ----------------------------------------------------------------- ----------- ----------- ----------- -----------
Distribution and/or servicing fees - Administrative Class 0 0 76 0
- ----------------------------------------------------------------- ----------- ----------- ----------- -----------
Distribution and/or servicing fees - Retail Classes 0 2,054 0 0
- ----------------------------------------------------------------- ----------- ----------- ----------- -----------
Trustees' fees 2 20 2 0
- ----------------------------------------------------------------- ----------- ----------- ----------- -----------
Miscellaneous 0 1 0 0
- ----------------------------------------------------------------- ----------- ----------- ----------- -----------
Total Expenses 237 4,278 350 37
- ----------------------------------------------------------------- ----------- ----------- ----------- -----------
Net Investment Income (Loss) (21) (104) 45 (10)
================================================================= =========== =========== =========== ===========
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investments 2,481 53,037 116 1,102
- ----------------------------------------------------------------- ----------- ----------- ----------- -----------
Net realized gain (loss) on futures contracts and written options 0 71 50 0
- ----------------------------------------------------------------- ----------- ----------- ----------- -----------
Net realized gain (loss) on foreign currency transactions 0 0 0 0
- ----------------------------------------------------------------- ----------- ----------- ----------- -----------
Net change in unrealized appreciation
(depreciation) on investments 1,901 9,052 4,456 (397)
- ----------------------------------------------------------------- ----------- ----------- ----------- -----------
Net change in unrealized appreciation
(depreciation) on futures contracts and written options 0 0 (9) 0
- ----------------------------------------------------------------- ----------- ----------- ----------- -----------
Net change in unrealized appreciation
(depreciation) on translation of assets and liabilities
denominated in foreign currencies 0 0 0 0
- ----------------------------------------------------------------- ----------- ----------- ----------- -----------
Net Gain (Loss) 4,382 62,160 4,613 705
- ----------------------------------------------------------------- ----------- ----------- ----------- -----------
Net Increase (Decrease) in Assets Resulting from Operations $ 4,361 $ 62,056 $ 4,658 $ 695
================================================================= =========== =========== =========== ===========
<CAPTION>
$ in thousands
Equity Small Cap Enhanced Balanced
Income Fund Value Fund Value Fund Equity Fund Fund
----------- ---------- ---------- ----------- --------
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends, net of foreign taxes $ 2,718 $ 2,168 $ 1,779 $ 342 $ 337
- ----------------------------------------------------------------- ----------- ---------- ---------- ----------- --------
Interest 144 105 314 6 973
- ----------------------------------------------------------------- ----------- ---------- ---------- ----------- --------
Total Income 2,862 2,273 2,093 348 1,310
================================================================= =========== ========== ========== =========== ========
Expenses:
Investment advisory fees 363 448 461 102 159
- ----------------------------------------------------------------- ----------- ---------- ---------- ----------- --------
Administration fees 216 337 269 56 94
- ----------------------------------------------------------------- ----------- ---------- ---------- ----------- --------
Distribution and/or servicing fees - Administrative Class 12 2 10 2 0
- ----------------------------------------------------------------- ----------- ---------- ---------- ----------- --------
Distribution and/or servicing fees - Retail Classes 77 529 451 0 26
- ----------------------------------------------------------------- ----------- ---------- ---------- ----------- --------
Trustees' fees 8 9 5 2 3
- ----------------------------------------------------------------- ----------- ---------- ---------- ----------- --------
Miscellaneous 0 0 0 0 0
- ----------------------------------------------------------------- ----------- ---------- ---------- ----------- --------
Total Expenses 676 1,325 1,196 162 282
- ----------------------------------------------------------------- ----------- ---------- ---------- ----------- --------
Net Investment Income (Loss) 2,186 948 897 186 1,028
================================================================= =========== ========== ========== =========== ========
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investments 9,075 13,892 8,316 3,723 4,419
- ----------------------------------------------------------------- ----------- ---------- ---------- ----------- --------
Net realized gain (loss) on futures contracts and written options 0 0 0 0 204
- ----------------------------------------------------------------- ----------- ---------- ---------- ----------- --------
Net realized gain (loss) on foreign currency transactions 0 0 0 0 0
- ----------------------------------------------------------------- ----------- ---------- ---------- ----------- --------
Net change in unrealized appreciation
(depreciation) on investments 9,446 3,003 10,188 1,059 779
- ----------------------------------------------------------------- ----------- ---------- ---------- ----------- --------
Net change in unrealized appreciation
(depreciation) on futures contracts and written options 0 0 0 0 51
- ----------------------------------------------------------------- ----------- ---------- ---------- ----------- --------
Net change in unrealized appreciation
(depreciation) on translation of assets and liabilities
denominated in foreign currencies 0 0 0 0 0
- ----------------------------------------------------------------- ----------- ---------- ---------- ----------- --------
Net Gain (Loss) 18,521 16,895 18,504 4,782 5,453
- ----------------------------------------------------------------- ----------- ---------- ---------- ----------- --------
Net Increase (Decrease) in Assets Resulting from Operations $ 20,707 $ 17,843 $ 19,401 $ 4,968 $ 6,481
================================================================= =========== ========== ========== =========== ========
</TABLE>
1997 Semiannual Report See accompanying notes 29
<PAGE>
Statement of Changes in Net Assets
$ in thousands
<TABLE>
<CAPTION>
Emerging Markets Fund International Developed Fund
----------------------------------- ------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
Increase (Decrease) in Net Assets from: December 31, 1997 June 30, 1997 December 31, 1997 June 30, 1997
(Unaudited) (Unaudited)
Operations:
<S> <C> <C> <C> <C>
Net investment income (loss) $ (7) $ 282 $ 233 $ 729
- ------------------------------------------------------- ----------------------------------- ------------------------------------
Net realized gain (loss) (6,081) 3,040 (3,720) 3,808
- ------------------------------------------------------- ----------------------------------- ------------------------------------
Net change in unrealized appreciation (depreciation) (3,037) 1,585 (3,165) 4,764
- ------------------------------------------------------- ----------------------------------- ------------------------------------
Net increase (decrease) resulting from operations (9,125) 4,907 (6,652) 9,301
======================================================= =================================== ====================================
Distributions to Shareholders:
From net investment income
Institutional Class 0 (310) (834) 0
- ------------------------------------------------------- ----------------------------------- ------------------------------------
Administrative Class 0 0 (4) 0
- ------------------------------------------------------- ----------------------------------- ------------------------------------
Retail Classes 0 0 (33) 0
- ------------------------------------------------------- ----------------------------------- ------------------------------------
In excess of net investment income
Institutional Class 0 0 0 0
- ------------------------------------------------------- ----------------------------------- ------------------------------------
Administrative Class 0 0 0 0
- ------------------------------------------------------- ----------------------------------- ------------------------------------
Retail Classes 0 0 0 0
- ------------------------------------------------------- ----------------------------------- ------------------------------------
From net realized capital gains
Institutional Class 0 0 (4,187) (4,189)
- ------------------------------------------------------- ----------------------------------- ------------------------------------
Administrative Class 0 0 (94) (255)
- ------------------------------------------------------- ----------------------------------- ------------------------------------
Retail Classes 0 0 (292) 0
- ------------------------------------------------------- ----------------------------------- ------------------------------------
Total Distributions 0 (310) (5,444) (4,444)
======================================================= =================================== ====================================
Fund Share Transactions:
Receipts for shares sold
Institutional Class 14,262 12,784 16,968 43,648
- ------------------------------------------------------- ----------------------------------- ------------------------------------
Administrative Class 740 305 1,589 1,683
- ------------------------------------------------------- ----------------------------------- ------------------------------------
Retail Classes 2,519 2,597 3,878 4,293
- ------------------------------------------------------- ----------------------------------- ------------------------------------
Shares issued in reorganization
Retail Classes 0 0 0 0
- ------------------------------------------------------- ----------------------------------- ------------------------------------
Issued as reinvestment of distributions
Institutional Class 0 222 4,242 3,449
- ------------------------------------------------------- ----------------------------------- ------------------------------------
Administrative Class 0 0 98 255
- ------------------------------------------------------- ----------------------------------- ------------------------------------
Retail Classes 0 0 285 0
- ------------------------------------------------------- ----------------------------------- ------------------------------------
Cost of shares redeemed
Institutional Class (20,941) (45,330) (17,202) (27,613)
- ------------------------------------------------------- ----------------------------------- ------------------------------------
Administrative Class (30) (553) (1,736) (5,453)
- ------------------------------------------------------- ----------------------------------- ------------------------------------
Retail Classes (2,235) (360) (1,164) (637)
- ------------------------------------------------------- ----------------------------------- ------------------------------------
Net increase (decrease) resulting from Fund share
transactions (5,685) (30,335) 6,958 19,625
- ------------------------------------------------------- ----------------------------------- ------------------------------------
Total Increase (Decrease) in Net Assets (14,810) (25,738) (5,138) 24,482
======================================================= =================================== ====================================
Net Assets:
Beginning of period 55,175 80,913 100,313 75,831
- ------------------------------------------------------- ----------------------------------- ------------------------------------
End of period * $ 40,365 $ 55,175 $ 95,175 $ 100,313
- ------------------------------------------------------- ----------------------------------- ------------------------------------
*Including net undistributed (overdistributed)
investment income of: $ (76) $ (69) $ 491 $ 1,129
- ------------------------------------------------------- ----------------------------------- ------------------------------------
<CAPTION>
Capital Appreciation Fund
------------------------------------
Six Months Ended Year Ended
Increase (Decrease) in Net Assets from: December 31, 1997 June 30, 1997
(Unaudited)
Operations:
<S> <C> <C>
Net investment income (loss) $ 1,750 $ 4,349
- ------------------------------------------------------- -----------------------------------
Net realized gain (loss) 34,094 45,370
- ------------------------------------------------------- -----------------------------------
Net change in unrealized appreciation (depreciation) 57,536 74,013
- ------------------------------------------------------- -----------------------------------
Net increase (decrease) resulting from operations 93,380 123,732
======================================================= ===================================
Distributions to Shareholders:
From net investment income
Institutional Class (3,482) (2,203)
- ------------------------------------------------------- -----------------------------------
Administrative Class (171) (7)
- ------------------------------------------------------- -----------------------------------
Retail Classes (177) 0
- ------------------------------------------------------- -----------------------------------
In excess of net investment income
Institutional Class 0 0
- ------------------------------------------------------- -----------------------------------
Administrative Class 0 0
- ------------------------------------------------------- -----------------------------------
Retail Classes 0 0
- ------------------------------------------------------- -----------------------------------
From net realized capital gains
Institutional Class (44,475) (44,041)
- ------------------------------------------------------- -----------------------------------
Administrative Class (1,807) (129)
- ------------------------------------------------------- -----------------------------------
Retail Classes (4,063) 0
- ------------------------------------------------------- -----------------------------------
Total Distributions (54,175) (46,380)
======================================================= ===================================
Fund Share Transactions:
Receipts for shares sold
Institutional Class 116,242 165,774
- ------------------------------------------------------- -----------------------------------
Administrative Class 28,356 3,111
- ------------------------------------------------------- -----------------------------------
Retail Classes 45,815 22,411
- ------------------------------------------------------- -----------------------------------
Shares issued in reorganization
Retail Classes 0 0
- ------------------------------------------------------- -----------------------------------
Issued as reinvestment of distributions
Institutional Class 37,066 36,552
- ------------------------------------------------------- -----------------------------------
Administrative Class 1,973 136
- ------------------------------------------------------- -----------------------------------
Retail Classes 4,065 0
- ------------------------------------------------------- -----------------------------------
Cost of shares redeemed
Institutional Class (72,523) (90,177)
- ------------------------------------------------------- -----------------------------------
Administrative Class (2,072) (349)
- ------------------------------------------------------- -----------------------------------
Retail Classes (7,179) (1,587)
- ------------------------------------------------------- -----------------------------------
Net increase (decrease) resulting from Fund share
transactions 151,743 135,871
- ------------------------------------------------------- -----------------------------------
Total Increase (Decrease) in Net Assets 190,948 213,223
======================================================= ===================================
Net Assets:
Beginning of period 561,951 348,728
- ------------------------------------------------------- -----------------------------------
End of period * $ 752,899 $ 561,951
- ------------------------------------------------------- -----------------------------------
*Including net undistributed (overdistributed)
investment income of: $ 6,647 $ 8,727
- ------------------------------------------------------- -----------------------------------
</TABLE>
30 PIMCO Funds See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
Mid Cap Growth Fund Micro Cap Growth Fund
------------------------------------ ------------------------------------
Increase (Decrease) in Net Assets from: Six Months Ended Year Ended Six Months Ended Year Ended
December 31, 1997 June 30, 1997 December 31, 1997 June 30, 1997
(Unaudited) (Unaudited)
Operations:
<S> <C> <C> <C> <C>
Net investment income (loss) $ 445 $ 1,077 $ (608) $ (544)
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Net realized gain (loss) 23,995 30,855 19,047 10,317
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Net change in unrealized appreciation (depreciation) 47,693 50,902 18,317 15,151
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Net increase (decrease) resulting from operations 72,133 82,834 36,756 24,924
==================================================== ==================================== ====================================
Distributions to Shareholders:
From net investment income
Institutional Class (1,419) (604) 0 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Administrative Class (34) (2) 0 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Retail Classes (41) 0 0 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
In excess of net investment income
Institutional Class 0 0 0 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Administrative Class 0 0 0 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Retail Classes 0 0 0 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
From net realized capital gains
Institutional Class (21,351) (43,528) (22,884) (11,397)
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Administrative Class (510) (258) (396) (122)
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Retail Classes (8,377) 0 0 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Total Distributions (31,732) (44,392) (23,280) (11,519)
==================================================== ==================================== ====================================
Fund Share Transactions:
Receipts for shares sold
Institutional Class 92,630 71,437 35,901 72,696
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Administrative Class 9,956 878 2,383 2,434
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Retail Classes 86,219 10,914 0 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Shares issued in reorganization
Retail Classes 0 75,422 0 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Issued as reinvestment of distributions
Institutional Class 22,223 42,923 19,223 9,931
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Administrative Class 544 261 396 121
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Retail Classes 7,672 0 0 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Cost of shares redeemed
Institutional Class (44,127) (72,699) (21,855) (15,697)
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Administrative Class (1,965) (280) (1,162) (1,174)
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Retail Classes (30,357) (11,811) 0 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Net increase (decrease) resulting from Fund share
transactions 142,795 117,045 34,886 68,311
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Total Increase (Decrease) in Net Assets 183,196 155,487 48,362 81,716
==================================================== ==================================== ====================================
Net Assets:
Beginning of period 387,569 232,082 166,255 84,539
- ---------------------------------------------------- ------------------------------------ ------------------------------------
End of period * $ 570,765 $ 387,569 $ 214,617 $ 166,255
- ---------------------------------------------------- ------------------------------------ ------------------------------------
*Including net undistributed (overdistributed)
investment income of: $ (536) $ 513 $ (608) $ 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
<CAPTION>
Small Cap Growth Fund Renaissance Fund
------------------------------------ ------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
Increase (Decrease) in Net Assets from: December 31, 1997 June 30, 1997 December 31, 1997 June 30, 1997
(Unaudited) (Unaudited)
Operations:
<S> <C> <C> <C> <C>
Net investment income (loss) $ (21) $ (17) $ (104) $ 664
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Net realized gain (loss) 2,481 4,368 53,108 42,917
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Net change in unrealized appreciation (depreciation) 1,901 2,170 9,052 33,883
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Net increase (decrease) resulting from operations 4,361 6,521 62,056 77,464
==================================================== ==================================== ====================================
Distributions to Shareholders:
From net investment income
Institutional Class 0 0 0 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Administrative Class 0 0 0 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Retail Classes 0 0 (425) (973)
- ---------------------------------------------------- ------------------------------------ ------------------------------------
In excess of net investment income
Institutional Class 0 0 0 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Administrative Class 0 0 0 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Retail Classes 0 0 0 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
From net realized capital gains
Institutional Class (4,791) (17,212) 0 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Administrative Class (7) (10) 0 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Retail Classes 0 0 (80,722) (38,793)
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Total Distributions (4,798) (17,222) (81,147) (39,766)
==================================================== ==================================== ====================================
Fund Share Transactions:
Receipts for shares sold
Institutional Class 1,961 10,629 581 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Administrative Class 79 1 0 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Retail Classes 0 0 134,981 151,393
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Shares issued in reorganization
Retail Classes 0 0 0 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Issued as reinvestment of distributions
Institutional Class 4,781 12,306 0 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Administrative Class 7 10 0 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Retail Classes 0 0 74,231 886
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Cost of shares redeemed
Institutional Class (767) (11,800) 0 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Administrative Class 0 (120) 0 0
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Retail Classes 0 0 (103,684) (72,275)
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Net increase (decrease) resulting from Fund share
transactions 6,061 11,026 106,109 80,004
- ---------------------------------------------------- ------------------------------------ ------------------------------------
Total Increase (Decrease) in Net Assets 5,624 325 87,018 117,702
==================================================== ==================================== ====================================
Net Assets:
Beginning of period 33,391 33,066 384,085 266,383
- ---------------------------------------------------- ------------------------------------ ------------------------------------
End of period * $ 39,015 $ 33,391 $ 471,103 $ 384,085
- ---------------------------------------------------- ------------------------------------ ------------------------------------
*Including net undistributed (overdistributed)
investment income of: $ 251 $ 272 $ 28,159 $ 28,688
- ---------------------------------------------------- ------------------------------------ ------------------------------------
</TABLE>
1997 Semiannual Report See accompanying notes 31
<PAGE>
Statement of Changes in Net Assets (Cont.)
$ in thousands
<TABLE>
<CAPTION>
Core Equity Fund Mid Cap Equity Fund
-------------------------------- ----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
Increase (Decrease) in Net Assets from: December 31, 1997 June 30, 1997 December 31, 1997 June 30, 1997
(Unaudited) (Unaudited)
Operations:
<S> <C> <C> <C> <C>
Net investment income (loss) $ 45 $ 14 $ (10) $ (34)
- ---------------------------------------------------- -------------------------------- ------------------------------------
Net realized gain (loss) 166 6,488 1,102 1,820
- ---------------------------------------------------- -------------------------------- ------------------------------------
Net change in unrealized appreciation (depreciation) 4,447 1,191 (397) (1,109)
- ---------------------------------------------------- -------------------------------- ------------------------------------
Net increase (decrease) resulting from operations 4,658 7,693 695 677
==================================================== ================================ ====================================
Distributions to Shareholders:
From net investment income
Institutional Class 0 (20) 0 0
- ---------------------------------------------------- -------------------------------- ------------------------------------
Administrative Class 0 (17) 0 0
- ---------------------------------------------------- -------------------------------- ------------------------------------
Retail Classes 0 0 0 0
- ---------------------------------------------------- -------------------------------- ------------------------------------
In excess of net investment income
Institutional Class 0 0 0 0
- ---------------------------------------------------- -------------------------------- ------------------------------------
Administrative Class 0 0 0 0
- ---------------------------------------------------- -------------------------------- ------------------------------------
Retail 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
- ---------------------------------------------------- -------------------------------- ------------------------------------
Retail Classes 0 0 0 0
- ---------------------------------------------------- -------------------------------- ------------------------------------
Total Distributions (7,547) (2,514) (2,251) (1,083)
==================================================== ================================ ====================================
Fund Share Transactions:
Receipts for shares sold
Institutional Class 583 1,642 553 574
- ---------------------------------------------------- -------------------------------- ------------------------------------
Administrative Class 67,652 9,341 583 0
- ---------------------------------------------------- -------------------------------- ------------------------------------
Retail Classes 0 0 0 0
- ---------------------------------------------------- -------------------------------- ------------------------------------
Shares issued in reorganization
Retail Classes 0 0 0 0
- ---------------------------------------------------- -------------------------------- ------------------------------------
Issued as reinvestment of distributions
Institutional Class 308 286 618 263
- ---------------------------------------------------- -------------------------------- ------------------------------------
Administrative Class 7,237 1,878 138 0
- ---------------------------------------------------- -------------------------------- ------------------------------------
Retail Classes 0 0 0 0
- ---------------------------------------------------- -------------------------------- ------------------------------------
Cost of shares redeemed
Institutional Class (3,461) (6,861) (532) (1,218)
- ---------------------------------------------------- -------------------------------- ------------------------------------
Administrative Class (5,086) (19,716) 0 0
- ---------------------------------------------------- -------------------------------- ------------------------------------
Retail Classes 0 0 0 0
- ---------------------------------------------------- -------------------------------- ------------------------------------
Net increase (decrease) resulting from Fund share
transactions 67,233 (13,430) 1,360 (381)
- ---------------------------------------------------- -------------------------------- ------------------------------------
Total Increase (Decrease) in Net Assets 64,344 (8,251) (196) (787)
==================================================== ================================ ====================================
Net Assets:
Beginning of period 35,776 44,027 7,591 8,378
- ---------------------------------------------------- -------------------------------- ------------------------------------
End of period * $ 100,120 $ 35,776 $ 7,395 $ 7,591
- ---------------------------------------------------- -------------------------------- -------------------------------------
*Including net undistributed (overdistributed)
investment income of: $ 2,376 $ 2,331 $ 464 $ 474
- ---------------------------------------------------- -------------------------------- ------------------------------------
<CAPTION>
Equity Income Fund
--------------------------------
Six Months Ended Year Ended
Increase (Decrease) in Net Assets from: December 31, 1997 June 30, 1997
(Unaudited)
Operations:
<S> <C> <C>
Net investment income (loss) $ 2,186 $ 3,710
- ---------------------------------------------------- --------------------------------
Net realized gain (loss) 9,075 20,609
- ---------------------------------------------------- --------------------------------
Net change in unrealized appreciation (depreciation) 9,446 6,318
- ---------------------------------------------------- --------------------------------
Net increase (decrease) resulting from operations 20,707 30,637
==================================================== ================================
Distributions to Shareholders:
From net investment income
Institutional Class (2,089) (4,331)
- ---------------------------------------------------- --------------------------------
Administrative Class (140) (249)
- ---------------------------------------------------- --------------------------------
Retail Classes (292) (79)
- ---------------------------------------------------- --------------------------------
In excess of net investment income
Institutional Class 0 0
- ---------------------------------------------------- --------------------------------
Administrative Class 0 0
- ---------------------------------------------------- --------------------------------
Retail Classes 0 0
- ---------------------------------------------------- --------------------------------
From net realized capital gains
Institutional Class (16,364) (14,051)
- ---------------------------------------------------- --------------------------------
Administrative Class (1,189) (853)
- ---------------------------------------------------- --------------------------------
Retail Classes (3,155) 0
- ---------------------------------------------------- --------------------------------
Total Distributions (23,229) (19,563)
==================================================== ================================
Fund Share Transactions:
Receipts for shares sold
Institutional Class 7,398 14,386
- ---------------------------------------------------- --------------------------------
Administrative Class 1,413 2,032
- ---------------------------------------------------- --------------------------------
Retail Classes 18,850 11,794
- ---------------------------------------------------- --------------------------------
Shares issued in reorganization
Retail Classes 0 0
- ---------------------------------------------------- --------------------------------
Issued as reinvestment of distributions
Institutional Class 18,142 17,797
- ---------------------------------------------------- --------------------------------
Administrative Class 1,328 1,101
- ---------------------------------------------------- --------------------------------
Retail Classes 3,282 71
- ---------------------------------------------------- --------------------------------
Cost of shares redeemed
Institutional Class (11,987) (37,514)
- ---------------------------------------------------- --------------------------------
Administrative Class (850) (1,690)
- ---------------------------------------------------- --------------------------------
Retail Classes (3,140) (1,638)
- ---------------------------------------------------- --------------------------------
Net increase (decrease) resulting from Fund share
transactions 34,436 6,339
- ---------------------------------------------------- --------------------------------
Total Increase (Decrease) in Net Assets 31,914 17,413
==================================================== ================================
Net Assets:
Beginning of period 140,224 122,811
- ---------------------------------------------------- --------------------------------
End of period * $ 172,138 $ 140,224
- ---------------------------------------------------- --------------------------------
*Including net undistributed (overdistributed)
investment income of: $ 2,045 $ 2,380
- ---------------------------------------------------- --------------------------------
</TABLE>
32 PIMCO Funds See accompanying notes
<PAGE>
Statement of Changes in Net Assets (Cont.)
<TABLE>
<CAPTION>
$ in thousands Value Fund Small Cap Value Fund
-------------------------------- ----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
Increase (Decrease) in Net Assets from: December 31, 1997 June 30, 1997 December 31, 1997 June 30, 1997
(Unaudited) (Unaudited)
Operations:
<S> <C> <C> <C> <C>
Net investment income (loss) $ 948 $ 1,702 $ 897 $ 742
- ----------------------------------------------------- -------------------------------- ---------------------------------
Net realized gain (loss) 13,892 13,315 8,316 5,616
- ----------------------------------------------------- -------------------------------- ---------------------------------
Net change in unrealized appreciation (depreciation) 3,003 19,593 10,188 6,732
- ----------------------------------------------------- -------------------------------- ---------------------------------
Net increase (decrease) resulting from operations 17,843 34,610 19,401 13,090
===================================================== ================================ =================================
Distributions to Shareholders:
From net investment income
Institutional Class (686) (1,517) (339) (302)
- ----------------------------------------------------- -------------------------------- ---------------------------------
Administrative Class (20) 0 (54) (41)
- ----------------------------------------------------- -------------------------------- ---------------------------------
Retail Classes (484) (451) (946) 0
- ----------------------------------------------------- -------------------------------- ---------------------------------
In excess of net investment income
Institutional Class 0 0 0 0
- ----------------------------------------------------- -------------------------------- ---------------------------------
Administrative Class 0 0 0 0
- ----------------------------------------------------- -------------------------------- ---------------------------------
Retail Classes 0 0 0 0
- ----------------------------------------------------- -------------------------------- ---------------------------------
From net realized capital gains
Institutional Class (7,693) (2,344) (1,659) (4,690)
- ----------------------------------------------------- -------------------------------- ---------------------------------
Administrative Class (411) 0 (373) (700)
- ----------------------------------------------------- -------------------------------- ---------------------------------
Retail Classes (12,583) 0 (6,326) 0
- ----------------------------------------------------- -------------------------------- ---------------------------------
Total Distributions (21,877) (4,312) (9,697) (5,733)
===================================================== ================================ =================================
Fund Share Transactions:
Receipts for shares sold
Institutional Class 3,173 17,251 18,821 5,653
- ----------------------------------------------------- -------------------------------- ---------------------------------
Administrative Class 4,244 0 2,542 1,269
- ----------------------------------------------------- -------------------------------- ---------------------------------
Retail Classes 30,358 21,246 142,425 36,469
- ----------------------------------------------------- -------------------------------- ---------------------------------
Shares issued in reorganization
Retail Classes 0 80,835 0 0
- ----------------------------------------------------- -------------------------------- ---------------------------------
Issued as reinvestment of distributions
Institutional Class 8,347 3,854 1,770 4,969
- ----------------------------------------------------- -------------------------------- ---------------------------------
Administrative Class 431 0 427 741
- ----------------------------------------------------- -------------------------------- ---------------------------------
Retail Classes 12,046 406 6,863 0
- ----------------------------------------------------- -------------------------------- ---------------------------------
Cost of shares redeemed
Institutional Class (7,392) (10,770) (12,824) (8,698)
- ----------------------------------------------------- -------------------------------- ---------------------------------
Administrative Class (6) 0 (433) (1,177)
- ----------------------------------------------------- -------------------------------- ---------------------------------
Retail Classes (19,006) (16,043) (12,580) (1,201)
- ----------------------------------------------------- -------------------------------- ---------------------------------
Net increase (decrease) resulting from Fund share
transactions 32,195 96,779 147,011 38,025
- ----------------------------------------------------- -------------------------------- ---------------------------------
Total Increase (Decrease) in Net Assets 28,161 127,077 156,715 45,382
===================================================== ================================ =================================
Net Assets:
Beginning of period 179,804 52,727 78,832 33,450
- ----------------------------------------------------- -------------------------------- ---------------------------------
End of period * $ 207,965 $ 179,804 $ 235,547 $ 78,832
- ----------------------------------------------------- -------------------------------- ---------------------------------
*Including net undistributed (overdistributed)
investment income of: $ 6,582 $ 6,824 $ 1,478 $ 1,920
- ----------------------------------------------------- -------------------------------- ---------------------------------
<CAPTION>
Enhanced Equity Fund Balanced Fund
-------------------------------- ----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
Increase (Decrease) in Net Assets from: December 31, 1997 June 30, 1997 December 31, 1997 June 30, 1997
(Unaudited) (Unaudited)
Operations:
<S> <C> <C> <C> <C>
Net investment income (loss) $ 186 $ 850 $ 1,028 $ 2,252
- ----------------------------------------------------- -------------------------------- ---------------------------------
Net realized gain (loss) 3,723 21,124 4,623 12,663
- ----------------------------------------------------- -------------------------------- ---------------------------------
Net change in unrealized appreciation (depreciation) 1,059 (4,893) 830 (3,065)
- ----------------------------------------------------- -------------------------------- ---------------------------------
Net increase (decrease) resulting from operations 4,968 17,081 6,481 11,850
===================================================== ================================ =================================
Distributions to Shareholders:
From net investment income
Institutional Class (414) (613) (976) (2,191)
- ----------------------------------------------------- -------------------------------- ---------------------------------
Administrative Class (30) 0 0 0
- ----------------------------------------------------- -------------------------------- ---------------------------------
Retail Classes 0 0 (142) (22)
- ----------------------------------------------------- -------------------------------- ---------------------------------
In excess of net investment income
Institutional Class 0 0 0 0
- ----------------------------------------------------- -------------------------------- ---------------------------------
Administrative Class 0 0 0 0
- ----------------------------------------------------- -------------------------------- ---------------------------------
Retail Classes 0 0 0 0
- ----------------------------------------------------- -------------------------------- ---------------------------------
From net realized capital gains
Institutional Class (16,994) (16,690) (5,071) (10,060)
- ----------------------------------------------------- -------------------------------- ---------------------------------
Administrative Class (1,161) 0 0 0
- ----------------------------------------------------- -------------------------------- ---------------------------------
Retail Classes 0 0 (1,027) 0
- ----------------------------------------------------- -------------------------------- ---------------------------------
Total Distributions (18,599) (17,303) (7,216) (12,273)
===================================================== ================================ =================================
Fund Share Transactions:
Receipts for shares sold
Institutional Class 2,259 11,801 2,466 10,422
- ----------------------------------------------------- -------------------------------- ---------------------------------
Administrative Class 2,877 0 0 0
- ----------------------------------------------------- -------------------------------- ---------------------------------
Retail Classes 0 0 11,993 2,436
- ----------------------------------------------------- -------------------------------- ---------------------------------
Shares issued in reorganization
Retail Classes 0 0 0 0
- ----------------------------------------------------- -------------------------------- ---------------------------------
Issued as reinvestment of distributions
Institutional Class 17,291 17,302 6,034 12,237
- ----------------------------------------------------- -------------------------------- ---------------------------------
Administrative Class 1,191 0 0 0
- ----------------------------------------------------- -------------------------------- ---------------------------------
Retail Classes 0 0 1,101 19
- ----------------------------------------------------- -------------------------------- ---------------------------------
Cost of shares redeemed
Institutional Class (11,486) (67,468) (17,681) (43,185)
- ----------------------------------------------------- -------------------------------- ---------------------------------
Administrative Class 0 0 0 0
- ----------------------------------------------------- -------------------------------- ---------------------------------
Retail Classes 0 0 (608) (139)
- ----------------------------------------------------- -------------------------------- ---------------------------------
Net increase (decrease) resulting from Fund share
transactions 12,132 (38,365) 3,305 (18,210)
- ----------------------------------------------------- -------------------------------- ---------------------------------
Total Increase (Decrease) in Net Assets (1,499) (38,587) 2,570 (18,633)
===================================================== ================================ =================================
Net Assets:
Beginning of period 44,838 83,425 63,929 82,562
- ----------------------------------------------------- -------------------------------- ---------------------------------
End of period * $ 43,339 $ 44,838 $ 66,499 $ 63,929
- ----------------------------------------------------- -------------------------------- ---------------------------------
*Including net undistributed (overdistributed)
investment income of: $ 3,178 $ 3,436 $ 2,770 $ 2,860
- ----------------------------------------------------- -------------------------------- ---------------------------------
</TABLE>
1997 Semiannual Report See accompanying notes 33
<PAGE>
Schedule of Investments
Emerging Markets Fund
December 31, 1997 (Unaudited)
Value
Shares (000s)
- --------------------------------------------------------------------------------
COMMON STOCKS 95.8%
- --------------------------------------------------------------------------------
ARGENTINA 8.1%
YPF Sociedad Anonima - ADR 22,650 $ 774
Telefonica de Argentina - ADR 20,633 769
Compania Naviera Perez Co. - ADR 33,512 479
Siderca SA 'A' 131,516 366
Banco Frances del Rio de la Plata SA 25,921 241
Astra Cia Argentina de Petro SA 136,757 239
Banco de Galicia y Buenos Aires SA de CV 34,442 220
Inversiones Y Representaciones SA - GDR 2,306 87
Molinos Rio de La Plata SA 31,266 75
Renault Argentina 11,160 16
Siderar SAIC 'A' (b) 2,946 12
----------
3,278
BRAZIL 9.3%
Telecomunicacoes Brasileiras - ADR 7,260 845
Centrais Electricas Brasileiras SA 'B' 16,126,000 824
Banco Itau SA 592,000 318
Banco Bradesco SA 27,740,000 273
Telecomunicacoes Brasileiras SA 2,485,000 253
Petroleo Brasileiro SA 1,051,000 246
Companhia Vale do Rio Doce 11,762 237
Companhia Energetica de Minas Gerais 4,300,000 187
Usimas Siderurgicas Minas Gerais SA PR 24,219,000 143
Companhia Siderurgica Nacional 3,472,000 96
White Martins SA 62,555 91
Companhia Paulista de Forca e Luz 680,000 90
Aracruz Celulose SA `B' 60,600 84
Companhia Cervejaria Brahma 56,000 37
Souza Cruz SA 4,500 36
Banco Brasileiro Rights 1,186 4
Companhia Vale do Rio Doce Rights 29,662 0
Souza Cruz SA Rights 4,500 0
----------
3,764
CHILE 8.5%
Compania de Telecomunicaciones de Chile SA SP - ADR 28,922 864
Enersis SA SP - ADR 21,300 618
Empresa Nacional de Electricidad SA SP - ADR 27,350 484
Chilgener SA SP - ADR 16,128 395
Banco Santander Chile SP - ADR 26,800 378
Quimica Minera Chile SA SP - ADR 5,330 235
Compania Cervecerias Unidas SA SP - ADR 7,300 214
Maders Y Sinteticos Sociedad - ADS 14,090 134
Madeco SA - ADR 8,057 123
----------
3,445
HUNGARY 7.3%
Magyar Tavkozlesi Rt. (b) 173,000 919
MOL Magyar Olaj-es Gazipare 25,800 626
Richter Gedeon 5,500 625
OTP Bank 11,800 447
Danubius Hotel (b) 5,700 173
Graboplast 2,700 143
----------
2,933
INDIA 6.0%
India Public Sector Fund Limited 33,000 322
Videsh Sanchar Nigam Limited - ADR (b) 22,900 321
Hindalco Industries Limited SP - GDR 12,210 244
Tata Engineering and Locomotive Co. Limited SP - GDR 27,924 233
Bajaj Auto Limited 11,100 223
Indian Hotels Co. - GDR 11,330 216
State Bank of India - GDR (b) 11,800 215
Larsen & Tourbro Limited - GDR 15,180 168
EIH Limited 11,780 157
Gujarat Ambuja- GDR 15,100 108
BSES Limited - GDR (b) 5,900 102
Indian Rayon & Industries Limited - GDR (b) 18,825 81
Steel Authority of India 15,300 49
----------
2,439
ISRAEL 8.7%
Teva Pharmaceutical Industries Limited 8,400 398
Bank Hapoalim Limited 155,900 374
Israel Chemicals Limited 276,000 374
ECI Telecommunications Limited 13,800 352
Formula Systems Limited (b) 11,100 342
Clal Israel Limited 1,138,000 338
Industrial Buildings Corp. 152,000 259
Blue Square Chain Stores (b) 26,900 257
Elco Holdings Limited 29,000 238
Bezek Israeli Telecommunication Corp. Limited 83,300 230
Elite Industries Limited 6,600 196
Agis Industries Limited 16,800 137
----------
3,495
KAZAKHSTAN 1.1%
Central Asia Regional 54,458 449
MEXICO 13.2%
Telefonos de Mexico - ADR 23,700 1,329
Cifra SA de CV `V' 204,580 503
Grupo Modelo SA de CV `C' 46,800 392
Cemex SA de CV 80,800 366
Grupo Carso SA de CV `A1' 54,300 363
Grupo Televisa SA SP - GDR (b) 8,910 345
Grupo Financiero Banamex Accival `L' (b) 114,507 295
Kimberly Clark de Mexico SA de CV `A' 58,300 278
Grupo Mexico SA `B' 71,710 267
Alfa SA de CV `A' 34,100 230
Fomento Economico Mexicano 25,800 207
Empresas La Moderna SA de CV (b) 30,600 164
Industrias Penoles SA 35,400 160
Grupo Industrial Bimbo SA de CV `A' 16,266 157
Desc SA de CV `B' 16,200 154
TV Azteca SA de CV SP - ADR (b) 5,400 122
----------
5,332
PERU 1.1%
Telefonica del Peru SA `B' 85,738 192
Credicorp Limited 4,142 75
Cerveceria Backus Y Johnston SA `T' 40,981 38
Luz del Sur Servicios SA `B' 29,900 35
Compania de Minas Buenaventura SA `A' 4,147 31
Banco Wiese SP - ADR 6,000 30
Ferreyros SA 18,303 19
Cementos Lima SA 7,241 16
Compania de Minas Buenaventura SA `B' 1,574 12
Southern Peru Copper Corp. `T' (b) 2,200 8
Minsur SA 3,000 6
----------
462
POLAND 1.7%
Elektrim Spolka Akcyjna SA 23,031 223
Bank Rozwoju Eksportu SA 5,310 110
Amica Wronki SA (b) 5,900 100
Polifarb-Cieszyn-Wroclaw SA (b) 15,213 72
Bank Slaski SA W Katawicach 1,080 60
Debica SA 2,180 53
Agros Holding SA (b) 2,300 48
----------
666
PORTUGAL 9.4%
Portugal Telecom SA 21,110 980
Banco Espirito Santo e Comercial de Lisboa SA 14,250 424
EDP-Electricidade de Portugal SA 22,200 421
Companhia de Seguros Mundial Confianca SA (b) 18,600 339
Cimpor-Cimentos de Portugal SGPS SA 11,140 292
Investec-Consultoria Internacional SA (b) 9,300 275
Sonae Investimentor-Sociedade Gestora de
Participacoes Sociais SA 5,700 231
Colep-Companhia Portuguesa de Embalagens (b) 15,100 213
Jeronimo Martins, SGPS SA Rights (b) 4,338 198
Banco Comercial Portugues SA `R' 7,000 143
Jeronimo Martins, SGPS SA (b) 4,338 138
Brisa-Auto Estradas de Portugal SA (b) 3,700 133
----------
3,787
RUSSIA 3.4%
Lukoil Holding SP - ADR 5,000 459
Unified Energy Systems - GDR (b) 12,250 371
AO Tatneft SP - ADR 1,500 214
Mosenergo SP - ADR (b) 5,100 191
Surgutneftegaz SP - ADR 12,600 129
----------
1,364
SOUTH AFRICA 7.3%
Nedcor Limited 20,350 450
Liberty Life Association of Africa 12,350 317
34 PIMCO Funds See accompanying notes
<PAGE>
Value
Shares (000s)
- --------------------------------------------------------------------------------
De Beers Centenary AG 15,120 $ 308
South African Breweries Limited 11,690 288
Sasol Limited 24,400 255
Rembrandt Group Limited 34,940 255
Barlow Limited 24,280 206
Nasionale Pers Beperk Limited 25,000 205
Smith C.G. Limited 44,730 184
Driefontein Consolidated Limited 22,800 155
ABSA Group Limited - GDR 12,317 140
Metro Cash & Carry Limited 142,500 124
Norwich Holdings SA Limited 47,800 74
----------
2,961
TURKEY 5.7%
Yapi ve Kredi Bankasi AS 1,761,600 335
Akbank TAS 626,296 275
Bagfas Bandirma Gubre Fabrikalari AS 80,400 261
Migros Turk TAS 45,080 204
Otosan Otomobil Sanayii AS 44,200 184
Haci Omer Sabanci Holding AS (b) 551,800 170
Eregli Demir Ve Celik Fabrikalari TAS 200,200 154
Adana Cimento Sanayii `A' 350,740 148
Northern Elektrik Telekomunikasyon AS (b) 72,600 131
Turk Sise Ve Cam Fabrikalari AS (b) 293,070 108
Izmir Demir Celik Sanayii AS (b) 1,731,400 102
Arcelik AS 190,150 89
Ege Biracilik Ve Malt Sanajii AS 162,000 73
Ak-Al Tekstil Sanayii AS 380,276 72
----------
2,306
VENEZUELA 5.0%
Compania Anonima Nacional Telefonos
de Venezuela - ADR 19,200 799
La Electricidad de Caracas 485,100 582
Banco Provincial SA 104,485 192
Siderurgica Venezolana Sivensa `A' 406,700 170
Corporacion Venezolana de Cementos, SACA 103,900 168
Mavesa SA - ADR 15,350 98
----------
2,009
----------
Total Common Stocks 38,690
==========
(Cost $33,809)
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 4.4%
- --------------------------------------------------------------------------------
Principal
Amount
(000s)
TIME DEPOSITS 4.4%
State Street Bank
4.500% due 01/02/98 $ 1,759 1,759
----------
Total Short-Term Instruments 1,759
(Cost $1,759) ==========
Total Investments (a) 100.2% $ 40,449
(Cost $35,568)
Other Assets and Liabilities (Net) (0.2%) (84)
----------
Net Assets 100.0% $ 40,365
==========
Notes to Schedule of Investments ($ in thousands):
(a) At December 31, 1997, 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. $ 8,029
Aggregate gross unrealized depreciation for all investments
in which there was an excess of tax cost over value. (3,148)
----------
Unrealized appreciation-net $ 4,881
==========
(b) Non-income producing security.
1997 Semiannual Report See accompanying notes 35
<PAGE>
Schedule of Investments
International Developed Fund
December 31, 1997 (Unaudited)
Value
Shares (000s)
- --------------------------------------------------------------------------------
COMMON STOCKS 89.4%
- --------------------------------------------------------------------------------
AUSTRALIA 0.7%
Westpac Banking Corp. 26,700 $ 171
Broken Hill Property Co. 12,022 112
News Corp. Limited 18,600 103
Pasminco Limited 84,000 96
Comalco Limited 16,200 67
Amcor Limited `A' 14,800 65
Tabcorp Holdings Limited 8,850 42
Leighton Holdings Limited 10,400 36
QNI Limited 20,000 13
------------
705
BELGIUM 2.1%
Webs-Belgium 118,700 1,966
FINLAND 5.9%
Nokia Corp. 34,810 2,492
Werner Soderstrom Osakey `B' 15,000 559
Hartwall OY AB 5,110 422
UPM-Kymmene Corp. 19,880 398
Okobank `A' 22,300 354
Metsa Serla `B' 41,540 324
Rautaruukki OY 30,600 247
Neste OY 9,030 219
Yit-Yhtyma OY 18,580 210
Enso OY `R' 21,700 168
Viking Line AB 4,000 162
Rauma Group OY 400 6
------------
5,561
FRANCE 13.0%
Societe Generale 8,810 1,201
Banque National de Paris 21,350 1,135
Compagnie Generale des Eaux 6,700 935
PSA Peugeot Citroen 7,050 889
L'OREAL 2,250 881
Alcatel Alsthom 6,410 815
Elf Aquitaine SA 6,642 773
Pinault-Printemps-Redoute SA 1,390 742
Groupe Danone 4,000 715
France Telecom SA (b) 18,000 653
AXA-UAP 7,740 599
Groupe GTM 8,800 592
Lafarge SA 9,000 591
Total SA 5,080 553
Compagnie de Saint Gobain 3,390 482
Valeo 6,910 469
Credit Commercial de France 5,250 360
Compagnie Gen de Eaux Warrants (b) 2,800 2
------------
12,387
GERMANY 10.1%
Mannesmann AG 3,063 1,538
VEBA AG 19,990 1,362
Bayer AG 29,660 1,101
Allianz AG 3,330 859
RWE AG 14,100 757
Siemens AG 10,000 603
Degussa AG 9,900 490
MAN AG 2,150 488
Daimler Benz AG 6,600 466
BASF AG 12,700 453
Commerzbank AG 11,300 440
Deutsche Bank AG 5,700 399
Volkswagen AG 630 352
Dresdner Bank AG 6,760 307
------------
9,615
IRELAND 3.4%
Allied Irish Banks PLC 116,300 1,129
CRH PLC 69,000 809
Jefferson Smurfit Group PLC 228,000 644
Irish Life PLC 76,500 440
Kerry Group PLC `A' 20,700 222
------------
3,244
ITALY 8.7%
ENI SpA 228,800 1,297
Telecom Italia Mobile SpA 211,000 974
Telecom Italia SpA 142,220 908
Istituto Mobiliare Italiano SpA 70,000 831
Banca Commerciale Italiana 214,000 744
Assicuazioni Generali 23,000 565
Edison SpA 88,000 532
Fiat SpA 161,000 468
Instituto Nazionale delle Assicurazioni 226,000 458
Benetton Group SpA 27,040 443
Alleanza Assicurazioni 39,000 388
Italcementi SpA 54,000 376
Danieli & Co. 45,000 309
------------
8,293
JAPAN 14.6%
NEC Corp. 112,000 1,194
Fuji Photo Film 31,000 1,189
Sumitomo Bank Limited 104,000 1,188
Fanuc 31,000 1,174
Nippon Telegraph & Telephone 264 1,134
Fujisawa Pharmaceutical 107,000 935
Murata Manufacturing Co. 28,000 704
Toyota Motor Corp. 24,000 688
Aoyama Trading Co. Limited 36,700 656
Tokio Marine & Fire Insurance Co. 56,000 636
Sumitomo Trust & Banking 114,000 593
Mitsui O.S.K. Lines Limited (b) 424,000 588
Kirin Brewery Co. Limited 72,000 524
Canon, Inc. 21,000 489
Matsushita Electric Industrial Co. Limited 33,000 483
Hitachi Limited 66,000 471
Tokyo Electric Power 23,600 431
Bridgestone Corp. 19,000 412
Ito-Yokado Co. Limited 7,000 357
------------
13,846
NETHERLANDS 5.9%
Royal Dutch Petroleum Co. 33,900 1,862
Unilever NV 11,064 682
Verernigde Nederlandse Uitgeversbedrijven
Verenigd Bezit 16,800 474
ING Groep NV 9,195 387
Vendex International NV 6,800 375
PolyGram NV 7,000 335
Akzo Noble NV 1,940 335
ABN-AMRO Holdings 16,280 317
Royal PTT Nederland NV 7,600 317
Philips Electronics NV 5,100 306
Elsevier NV 16,200 262
------------
5,652
PORTUGAL 3.9%
Portugal Telecom SA 25,500 1,184
Banco Espirito Santo e Comercial de Lisboa SA 20,000 595
Banco Comercial Portugues SA `R' 21,000 430
EDP-Electricidade de Portugal SA 22,500 426
Cimpor-Cimentos de Portugal SGPS SA 15,000 393
Sonae Investimentor-Sociedade Gestora de
Participacoes Sociais SA 5,300 214
Jeronimo Martins, SGPS, SA Rights (b) 4,600 210
Jeronimo Martins, SGPS, SA (b) 4,600 146
Brisa-Auto Estradas de Portugal SA (b) 3,600 129
------------
3,727
SPAIN 2.5%
Telefonica de Espana 13,650 390
Banco Bilbao Vizcaya, SA 10,800 349
Iberdrola SA 25,500 335
Banco Popular Espanol SA 4,300 301
Corporacion Bancaria de Espana SA 4,700 286
Repsol SA 6,700 286
Gas Y Electricidad SA `2' 3,100 224
Gas Natural SDG SA `E' 4,100 213
------------
2,384
SWITZERLAND 8.0%
Novartis AG 1,141 1,850
Roche Holding AG 140 1,389
UBS (Schweiz Bankgesellschaft) 710 1,026
36 PIMCO Funds See accompanying notes
<PAGE>
Value
Shares (000s)
- --------------------------------------------------------------------------------
Nestle SA 601 $ 900
Credit Suisse Group 3,344 517
Kuoni Reisen AG 130 487
Clariant AG 545 455
ABB AG 294 369
Holderbank Financiere Glarus AG 385 314
Tag Heuer International SA (b) 3,040 264
Ciba Specialty Chemicals AG (b) 6 1
------------
7,572
UNITED KINGDOM 10.6%
Lloyds TSB Group PLC 81,404 1,057
Zeneca Group 21,560 762
SmithKline Beecham PLC 64,896 670
Scottish Power PLC 72,280 640
Unilever PLC 71,200 613
Abbey National PLC 31,900 553
Scottish & Newcastle PLC 43,800 532
Boots Co. PLC 36,200 528
Prudential 45,100 526
Commercial Union PLC 34,900 518
Shell Transport & Trading Co. 69,900 510
LASMO PLC 98,000 438
Glaxo Wellcome PLC 17,000 404
Wolseley PLC 48,800 389
HSBC Holdings PLC 14,000 363
IMI PLC 50,100 336
EMI Group PLC 38,700 335
British Telecommunications PLC 41,500 329
Tesco PLC 40,000 324
British Petroleum Co. PLC 22,900 303
------------
10,130
------------
Total Common Stocks 85,082
------------
(Cost $77,365)
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 9.8%
- --------------------------------------------------------------------------------
Principal
Amount
(000s)
TIME DEPOSITS 9.8%
State Street Bank
5.250% due 01/02/98 $ 9,331 9,331
------------
Total Short-Term Instruments 9,331
------------
(Cost $9,331)
Total Investments (a) 99.2% $ 94,413
(Cost $86,696)
Other Assets and Liabilities (Net) 0.8% 762
------------
Net Assets 100.0% $ 95,175
------------
Notes to Schedule of Investments ($ in thousands):
(a) At December 31, 1997, 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. $ 12,589
Aggregate gross unrealized depreciation for all investments
in which there was an excess of tax cost over value. (4,872)
------------
Unrealized appreciation-net $ 7,717
------------
(b) Non-income producing security.
1997 Semiannual Report See accompanying notes 37
<PAGE>
Schedule of Investments
Capital Appreciation Fund
December 31, 1997 (Unaudited)
Value
Shares (000s)
- --------------------------------------------------------------------------------
COMMON STOCKS 96.7%
- --------------------------------------------------------------------------------
CAPITAL GOODS 9.9%
Textron, Inc. 166,900 $ 10,431
Illinois Tool Works, Inc. 160,300 9,638
Unifi, Inc. 231,100 9,403
Dresser Industries, Inc. 217,500 9,122
Ingersoll Rand Co. 217,150 8,795
Johnson Controls, Inc. 184,000 8,786
AlliedSignal, Inc. 188,500 7,340
United Technologies Corp. 95,300 6,939
Paccar, Inc. 75,800 3,980
-----------
74,434
COMMUNICATIONS 2.6%
SBC Communications, Inc. 138,100 10,116
AT&T Corp. 153,200 9,384
-----------
19,500
CONSUMER DISCRETIONARY 15.9%
Kroger Co. (b) 358,800 13,253
TJX Corp., Inc. 381,200 13,104
Omnicom Group 302,600 12,823
Costco Cos. (b) 269,900 12,044
New York Times Co. 157,500 10,415
Gannett, Inc. 166,000 10,261
Dayton Hudson Corp. 136,800 9,234
Tribune Co. 142,700 8,883
Jones Apparel Group, Inc. (b) 175,900 7,564
Federated Department Stores, Inc. (b) 173,600 7,476
Sunbeam-Oster, Inc. 177,400 7,473
Brunswick Corp. 238,100 7,217
-----------
119,747
CONSUMER SERVICES 3.0%
Carnival Corp. `A' 226,600 12,548
Marriott International, Inc. 146,400 10,138
-----------
22,686
CONSUMER STAPLES 5.6%
Safeway, Inc. (b) 208,600 13,194
Campbell Soup Co. 178,400 10,370
Hershey Foods Corp. 156,300 9,681
Albertson's, Inc. 186,700 8,845
-----------
42,090
ENERGY 9.0%
Transocean Offshore, Inc. 202,900 9,777
Halliburton Co. 179,900 9,344
Schlumberger Limited 110,500 8,895
ENSCO International, Inc. (b) 258,500 8,660
Noble Drilling Corp. (b) 279,200 8,551
Rowan Cos., Inc. (b) 251,100 7,659
Global Marine, Inc. (b) 312,300 7,651
Nabors Industries, Inc. (b) 238,800 7,507
-----------
68,044
FINANCIAL AND BUSINESS SERVICES 26.6%
Southtrust Corp. 183,300 11,628
Travelers Group, Inc. 207,000 11,152
Norwest Corp. 278,200 10,745
Bear Stearns Cos 220,803 10,488
BankBoston Corp. 105,100 9,873
Associates First Capital Corp. `A' 136,100 9,680
American Express Co. 104,700 9,344
PNC Bank Corp. 163,015 9,302
Federal National Mortgage Assn 161,200 9,198
National City Corp. 135,700 8,922
CarrAmerica Realty Corp. 279,200 8,847
Federal Home Loan Mortgage Corp. 208,600 8,748
BankAmerica Corp. 118,600 8,658
Citicorp 68,100 8,610
Capital One Financial Corp. 156,900 8,502
Lincoln National Corp. 108,800 8,500
Hartford Financial Services Group, Inc. 90,800 8,495
Alliance Capital Management LP 212,300 8,452
First Union Corp. 158,700 8,133
Chase Manhattan Corp. 73,800 8,081
Household International, Inc. 58,100 7,411
Simon DeBartolo Group, Inc. 226,200 7,394
-----------
200,163
HEALTH CARE 7.8%
Schering-Plough Corp. 192,300 $11,947
Cognizant Corp. 230,700 10,281
Tenet Healthcare Corp. (b) 302,305 10,014
Health Management Assn., Inc. `A' (b) 360,200 9,095
Biomet, Inc. 340,500 8,725
Eli Lilly & Co. 124,200 8,647
-----------
58,709
MATERIALS AND PROCESSING 4.6%
Sealed Air Corp. (b) 160,400 9,905
Rohm & Haas Co. 92,600 8,866
Tyco International Limited (b) 186,100 8,386
Fort James Corp. 185,700 7,103
-----------
34,260
TECHNOLOGY 7.0%
Computer Associates International, Inc. 205,000 10,839
BMC Software, Inc. (b) 151,400 9,936
International Business Machines Corp. 86,100 9,003
Bay Networks, Inc. (b) 344,300 8,801
Cisco Systems, Inc. (b) 132,900 7,409
Dell Computer Corp. (b) 82,500 6,930
-----------
52,918
TRANSPORTATION 2.3%
U.S. Airways Group, Inc. (b) 145,400 9,088
Continental Airlines, Inc. `B' (b) 166,200 7,998
-----------
17,086
UTILITIES 2.4%
Ameritech Corp. 116,100 9,346
American Electric Power, Inc. 166,800 8,611
-----------
17,957
-----------
Total Common Stocks 727,594
(Cost $545,397) ===========
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 4.6%
- --------------------------------------------------------------------------------
Principal
Amount
(000s)
REPURCHASE AGREEMENTS 4.6%
State Street Bank
4.250% due 01/02/98 $ 34,993 34,993
(Dated 12/31/97. Collateralized by
U.S. Treasury Note 6.000% 05/31/98
valued at $35,696,589. Repurchase
proceeds are $35,001,262.)
-----------
Total Short-Term Instruments 34,993
(Cost $34,993) ===========
Total Investments (a) 101.3% $ 762,587
(Cost $580,390)
Other Assets and Liabilities (Net) (1.3%) (9,688)
-----------
Net Assets 100.0% $ 752,899
===========
Notes to Schedule of Investments ($ in thousands):
(a) At December 31, 1997, 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 $ 184,864
Aggregate gross unrealized depreciation for all
investments in which there was an
excess of tax cost over value (2,667)
-----------
Unrealized appreciation-net $ 182,197
===========
(b) Non-income producing security
38 PIMCO Funds See accompanying notes
<PAGE>
Schedule of Investments
Mid Cap Growth Fund
December 31, 1997 (Unaudited)
Value
Shares (000s)
- --------------------------------------------------------------------------------
COMMON STOCKS 96.0%
- --------------------------------------------------------------------------------
BUILDING 0.0%
Medusa Corp. 4,300 $ 180
CAPITAL GOODS 4.9%
General Dynamics Corp. 81,600 7,053
B.F. Goodrich Co. 133,900 5,548
Snap-On, Inc. 126,700 5,527
Waters Corp. (b) 141,700 5,331
Mark IV Industries, Inc. 210,351 4,601
-----------
28,060
CONSUMER DISCRETIONARY 16.7%
Borders Group, Inc. (b) 264,000 8,266
Consolidated Stores Corp. (b) 181,956 7,995
Bed, Bath & Beyond, Inc. (b) 204,300 7,866
HON Industries 122,300 7,216
Lancaster Colony Corp. 127,700 7,199
Maytag Corp. 192,800 7,194
U.S. Industries, Inc. (b) 229,300 6,908
Herman Miller, Inc. 122,900 6,706
Tiffany & Co. 171,300 6,178
Alberto-Culver Co. `A' 222,600 6,010
Dial Corp. 287,700 5,988
Kroger Co. (b) 153,000 5,651
Proffitt's, Inc. (b) 192,800 5,483
Liz Claiborne, Inc. 125,800 5,260
Callaway Golf Co. 44,100 1,260
-----------
95,180
CONSUMER SERVICES 3.1%
Promus Hotel Corp. (b) 147,938 6,213
Royal Caribbean Cruises Limited 111,600 5,950
GTECH Holdings Corp. (b) 178,900 5,714
-----------
17,877
CONSUMER STAPLES 5.7%
Dean Foods Co. 132,000 7,854
Richfood Holdings, Inc. 256,450 7,245
Interstate Bakeries Corp. 176,000 6,578
Flowers Industries, Inc. 316,100 6,500
Suiza Foods Corp. (b) 73,000 4,348
-----------
32,525
ENERGY 11.2%
Falcon Drilling Co., Inc. (b) 249,900 8,762
Cooper Cameron Corp. (b) 115,800 7,064
Baker Hughes, Inc. 154,700 6,749
EVI, Inc. (b) 121,400 6,282
Weatherford Enterra, Inc. (b) 138,300 6,051
Tosco Corp. 157,700 5,963
BJ Services Co. (b) 81,300 5,849
Smith International, Inc. (b) 93,600 5,745
Parker Drilling Co. (b) 465,100 5,668
Diamond Offshore Drilling, Inc. 111,600 5,371
Camco International, Inc. 10,000 637
-----------
64,141
FINANCIAL AND BUSINESS SERVICES 28.9%
Cullen/Frost Bankers, Inc. 148,900 9,036
Union Planters Corp. 110,100 7,480
Mercantile BanCorp 118,113 7,264
Valassis Communications, Inc. (b) 194,600 7,200
Crestar Financial Corp. 125,100 7,131
Allmerica Financial Corp. 141,300 7,056
SunAmerica, Inc. 163,450 6,987
AmSouth Bancorp 128,400 6,974
Equity Residential Properties Trust 134,500 6,801
Progressive Corp. 55,600 6,665
Crescent Real Estate Equities Co. 166,200 6,544
Protective Life Corp. 109,500 6,543
Ambac, Inc. 134,500 6,187
Equifax, Inc. 171,900 6,092
Summit Bancorp 113,990 6,070
Finova Group, Inc. 120,500 5,987
PaineWebber Group, Inc. 168,400 5,820
Mutual Risk Management Limited 194,230 5,807
Public Storage, Inc. 196,000 5,757
Penncorp Financial Group, Inc. 160,300 5,721
PMI Group, Inc. 78,900 5,705
Travelers Property Casualty `A' 125,500 5,522
Popular, Inc. 104,600 5,178
Bank United Corp. 90,900 4,448
LNR Property Corp. 150,100 3,546
BB&T Corp. 47,500 3,043
City National Corp. 25,000 923
HCC Insurance Holdings, Inc. 36,550 777
Magna Group, Inc. 15,000 686
Associated Banc-Corp 12,000 661
Reinsurance Group of America 15,000 638
Crescent Operating, Inc. (b) 14,330 351
First Midwest Bancorp, Inc. 1,250 55
-----------
164,655
HEALTH CARE 4.4%
Health Management Assn., Inc. `A' (b) 275,125 6,947
Watson Pharmaceutical, Inc. (b) 204,000 6,617
DePuy, Inc. (b) 208,600 5,997
Guidant Corp. 84,800 5,279
-----------
24,840
MATERIALS AND PROCESSING 7.4%
Fort James Corp. 178,512 6,828
Sealed Air Corp. (b) 104,100 6,428
Southdown, Inc. 104,900 6,189
Cytec Industries, Inc. (b) 129,800 6,092
Lennar Corp. 275,700 5,945
Lear Corp. (b) 120,700 5,733
BetzDearborn, Inc. 75,600 4,616
Mueller Industries, Inc. (b) 10,000 590
-----------
42,421
TECHNOLOGY 8.2%
Compuware Corp. (b) 264,100 8,451
Sanmina Corp. (b) 94,300 6,389
Tech Data Corp. (b) 156,400 6,080
Comdisco, Inc. 178,775 5,978
American Power Conversion Corp. (b) 245,500 5,800
SCI Systems, Inc. (b) 118,600 5,167
Iomega Corp. (b) 364,200 4,530
Network Associates, Inc. (b) 79,700 4,214
-----------
46,609
TRANSPORTATION 2.3%
Comair Holdings, Inc. 291,700 7,037
CNF Transportation, Inc. 153,300 5,883
-----------
12,920
UTILITIES 3.2%
El Paso Natural Gas Co. 94,900 6,311
IPALCO Enterprises, Inc. 143,400 6,014
National Fuel Gas Co. 114,600 5,580
Oneok, Inc. 15,000 606
-----------
18,511
-----------
Total Common Stocks 547,919
(Cost $418,184) -----------
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 9.3%
- --------------------------------------------------------------------------------
Principal
Amount
(000s)
REPURCHASE AGREEMENTS 9.3%
State Street Bank
4.250% due 01/02/98 $ 53,269 53,269
(Dated 12/31/97. Collateralized by U.S.
Treasury Note 6.000% 05/31/98
valued at $54,335,121. Repurchase
proceeds are $53,281,577.)
-----------
Total Short-Term Instruments 53,269
(Cost $53,269) -----------
Total Investments (a) 105.3% $ 601,188
(Cost $471,453)
Other Assets and Liabilities (Net) (5.3%) (30,423)
-----------
Net Assets 100.0% $ 570,765
-----------
1997 Semiannual Report See accompanying notes 39
<PAGE>
Schedule of Investments (Cont.)
Mid Cap Growth Fund
December 31, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Notes to Schedule of Investments ($ in thousands):
(a) At December 31, 1997, 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. $ 132,823
Aggregate gross unrealized depreciation for all investments
in which there was an excess of tax cost over value. (3,088)
----------
Unrealized appreciation-net $ 129,735
==========
(b) Non-income producing security.
40 PIMCO Funds See accompanying notes
<PAGE>
Schedule of Investments
Micro Cap Growth Fund
December 31, 1997 (Unaudited)
Value
Shares (000s)
- --------------------------------------------------------------------------------
COMMON STOCKS 92.3%
- --------------------------------------------------------------------------------
BUILDING 3.3%
Crossmann Communities, Inc. (b) 159,950 $ 4,418
Engle Homes, Inc. 147,600 2,712
----------
7,130
CAPITAL GOODS 6.2%
Gardner Denver Machinery, Inc. (b) 166,650 4,218
HEICO Corp. 109,200 3,085
Engineered Support Systems, Inc. 153,800 2,826
Powell Industries, Inc. (b) 179,400 2,736
Quixote Corp. 55,000 440
----------
13,305
CONSUMER DISCRETIONARY 27.6%
Pillowtex Corp. 120,000 4,185
Virco Manufacturing Corp. 146,100 4,091
Movado Group, Inc. 145,812 3,354
Crown Crafts, Inc. 182,500 2,852
Piercing Pagoda, Inc. (b) 98,600 2,835
The First Years 121,500 2,795
Winsloew Furniture, Inc. (b) 183,700 2,664
American Safety Razor Co. (b) 128,200 2,564
S&K Famous Brands, Inc. (b) 192,300 2,536
Quaker Fabric Corp. (b) 128,000 2,512
Monaco Coach Corp. (b) 97,500 2,486
Fresh America Corp. (b) 127,500 2,454
Equity Marketing, Inc. (b) 97,600 2,440
Play By Play Toys & Novelties, Inc. (b) 131,500 2,392
Galey & Lord, Inc. (b) 121,300 2,168
Dover Downs Entertainment, Inc. 94,300 2,163
Culp, Inc. 104,250 2,085
Bon-Ton Stores, Inc. (b) 133,200 1,998
Drypers Corp. (b) 336,900 1,979
Shoe Carnival, Inc. (b) 235,900 1,917
Dixie Group, Inc. (b) 168,200 1,913
Steinway Musical Instruments, Inc. (b) 78,100 1,806
Koala Corp. (b) 85,600 1,477
Rocky Shoes & Boots, Inc. (b) 83,900 1,279
Dyersburg Corp. 18,500 210
----------
59,155
CONSUMER SERVICES 1.4%
Ha-Lo Industries, Inc. (b) 117,950 3,067
CONSUMER STAPLES 3.8%
Tasty Baking Co. 140,250 2,709
Mortons Restaurant Group, Inc. (b) 132,700 2,687
Standard Commercial Corp. (b) 141,981 2,352
Riviana Foods, Inc. 18,000 376
----------
8,124
ENERGY 7.8%
UTI Energy Corp. (b) 127,600 3,302
Evergreen Resources, Inc. (b) 198,000 3,069
St. Mary Land & Exploration 78,600 2,751
Key Production Co., Inc. (b) 255,600 2,684
Clayton Williams Energy, Inc. (b) 165,400 2,481
American Oilfield Divers, Inc. (b) 192,700 2,457
----------
16,744
FINANCIAL AND BUSINESS SERVICES 20.9%
Community First Bankshares, Inc. 80,700 4,297
Warren Bancorp, Inc. 181,000 4,163
Chittenden Corp. 113,943 3,988
Provident Bankshares Corp. 62,062 3,964
Dime Financial Corp. 124,900 3,809
JeffBanks, Inc. 76,300 3,510
Abington Bancorp, Inc. 163,000 3,423
Sho-Me Financial Corp. (b) 64,700 3,300
Vermont Financial Services Corp. 116,800 3,241
Southwest Securities Group, Inc. 125,800 3,239
Progressive Bank, Inc. 81,900 3,133
Peoples Heritage Financial Group 58,000 2,668
Alabama National Bancorp 83,100 2,192
----------
44,927
HEALTH CARE 5.2%
Osteotech, Inc. (b) 145,250 $ 3,958
Rexall Sundown, Inc. (b) 116,700 3,523
Sheridan Healthcare, Inc. (b) 197,300 2,960
Interpore International (b) 112,400 674
----------
11,115
MATERIALS AND PROCESSING 2.6%
Northwest Pipe Co. (b) 115,200 2,765
Fibermark, Inc. (b) 127,600 2,743
----------
5,508
TECHNOLOGY 8.2%
Barra, Inc. (b) 142,200 3,431
Ciber, Inc. (b) 53,000 3,074
Dendrite International (b) 152,300 2,951
Performance Technologies, Inc. (b) 196,650 2,851
Applied Voice Technology, Inc. (b) 96,900 2,737
Cotelligent Group, Inc. (b) 128,700 2,461
----------
17,505
TRANSPORTATION 5.3%
Atlantic Coast Airlines, Inc. (b) 156,000 4,953
Mesaba Holdings, Inc. (b) 151,500 3,939
MTL, Inc. (b) 99,500 2,543
----------
11,435
----------
Total Common Stocks 198,015
(Cost $142,296) ==========
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 12.4%
- --------------------------------------------------------------------------------
Principal
Amount
(000s)
REPURCHASE AGREEMENTS 12.4%
State Street Bank
4.250% due 01/02/98 $ 26,729 26,729
(Dated 12/31/97. Collateralized by
U.S. Treasury Note 6.000% 05/31/98
valued at $27,265,711. Repurchase
proceeds are $26,735,311.)
---------
Total Short-Term Instruments 26,729
(Cost $26,729) =========
Total Investments (a) 104.7% $ 224,744
(Cost $169,025)
Other Assets and Liabilities (Net) (4.7%) (10,127)
---------
Net Assets 100.0% $ 214,617
=========
Notes to Schedule of Investments ($ in thousands):
(a) At December 31, 1997, 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. $ 57,687
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value. (1,968)
---------
Unrealized appreciation-net $ 55,719
=========
(b) Non-income producing security.
1997 Semiannual Report See accompanying notes 41
<PAGE>
Schedule of Investments
Small Cap Growth Fund
December 31, 1997 (Unaudited)
Value
Shares (000s)
- --------------------------------------------------------------------------------
COMMON STOCKS 95.0%
- --------------------------------------------------------------------------------
BUILDING 2.0%
Lone Star Industries, Inc. 7,400 $ 393
D.R. Horton, Inc. 22,000 382
-------
775
CAPITAL GOODS 12.7%
Manitowoc Co., Inc. 13,900 452
Applied Power, Inc. `A' 6,300 435
Gleason Corp. 16,000 431
Chart Industries, Inc. 18,500 422
Robbins & Myers, Inc. 10,000 396
Kellstrom Industries, Inc. (b) 15,600 386
Lincoln Electric Co. `A' 10,500 378
Roper Industries, Inc. 12,000 339
GenCorp, Inc. 13,100 328
BE Aerospace, Inc. (b) 11,500 308
MTS Systems Corp. 8,200 307
Gardner Denver Machinery, Inc. (b) 11,400 288
Aviall, Inc. (b) 17,200 257
Barnes Group, Inc. 9,700 221
-------
4,948
COMMUNICATIONS 1.0%
Aliant Communications, Inc. 12,300 386
CONSUMER DISCRETIONARY 16.0%
Fred Meyer, Inc. (b) 15,400 560
Pier 1 Imports, Inc. 19,200 434
Ethan Allen Interiors, Inc. 11,200 432
Ross Stores, Inc. (b) 11,300 411
Central Garden & Pet Co. (b) 14,700 386
Samsonite Corp. (b) 12,200 386
Williams-Sonoma, Inc. (b) 8,500 356
Renters Choice, Inc. (b) 14,500 297
Ames Department Stores, Inc. (b) 15,900 278
Action Performance Cos., Inc. (b) 7,100 269
Helen of Troy Corp. (b) 15,900 256
Authentic Fitness Corp. 13,700 252
Russ Berrie & Co., Inc. 9,400 247
Windmere Corp. 10,700 241
Emmis Broadcasting Corp. `A' (b) 5,100 233
Culp, Inc. 10,600 212
Coleman Co., Inc. (b) 12,800 205
Consolidated Cigar Holdings, Inc. (b) 7,000 193
Play By Play Toys & Novelties, Inc. (b) 10,400 189
Movado Group, Inc. 8,100 186
Royal Appliance Manufacturing Co. (b) 20,000 133
Pillowtex Corp. 2,399 84
-------
6,240
CONSUMER SERVICES 2.3%
Coach USA, Inc. (b) 14,400 482
Ha-Lo Industries, Inc. (b) 16,025 417
-------
899
CONSUMER STAPLES 4.6%
Universal Corp. 10,900 448
Suiza Foods Corp. (b) 7,395 440
Earthgrains Co. 8,600 404
Michael Foods, Inc. 14,600 356
Standard Commercial Corp. (b) 9,593 159
-------
1,807
ENERGY 10.8%
Veritas DGC, Inc. (b) 12,000 474
Camco International, Inc. 7,100 452
Falcon Drilling Co., Inc. (b) 11,500 403
Key Energy Group, Inc. (b) 18,700 394
Newpark Resources, Inc. (b) 22,200 389
Pride Petroleum Services, Inc. (b) 15,000 379
Swift Energy Co. (b) 17,930 378
Varco International, Inc. (b) 15,200 326
Pool Energy Services Co. (b) 12,600 280
Marine Drilling Co., Inc (b) 13,200 274
Patterson Energy, Inc. (b) 6,800 263
Cliffs Drilling Co. (b) 4,200 209
-------
4,221
FINANCIAL AND BUSINESS SERVICES 23.6%
Associated Banc-Corp 9,764 $ 538
Protective Life Corp. 8,600 514
First Midwest Bancorp, Inc. 10,825 474
Westamerica BanCorp 4,600 470
Peoples Heritage Financial Group 9,900 455
City National Corp. 11,800 436
Capital Re Corp. 7,000 434
Magna Group, Inc. 9,400 430
UST Corp. 15,200 422
Penncorp Financial Group, Inc. 11,100 396
Colonial BancGroup, Inc. 11,300 389
Raymond James Financial, Inc. 9,600 381
Reinsurance Group of America 8,950 381
Allied Group, Inc. 13,200 378
Patriot American Hospitality, Inc. 12,798 369
Enhance Financial Services Group, Inc. 5,500 327
CMAC Investment Corp. 5,400 326
HCC Insurance Holdings, Inc. 15,200 323
Hospitality Properties Trust 9,500 312
Felcor Suite Hotels, Inc. 8,500 302
Prentiss Properties Trust 10,800 302
Highwoods Properties, Inc. 8,000 298
Innkeepers USA Trust 18,900 293
Merrill Corp. 11,000 256
-------
9,206
HEALTH CARE 5.1%
Rexall Sundown, Inc. (b) 13,900 420
Universal Health Services, Inc. (b) 7,700 388
Jones Medical Industries, Inc. 7,100 272
Curative Health Services, Inc. (b) 8,800 267
Ballard Medical Products 11,000 267
Respironics, Inc. (b) 10,600 237
Wesley Jessen VisionCare, Inc. (b) 3,300 129
-------
1,980
MATERIALS AND PROCESSING 4.6%
Mueller Industries, Inc. (b) 8,500 501
Martin Marietta Materials, Inc. 12,000 439
Cambrex Corp. 7,200 331
Oregon Metallurgical Corp. (b) 6,100 204
RMI Titanium Co. (b) 8,400 168
Hexcel Corp. (b) 6,700 167
-------
1,810
TECHNOLOGY 7.9%
Lernout & Hauspie Speech Products NV (b) 9,500 442
Veritas Software Corp. (b) 7,700 393
Genrad, Inc. (b) 13,000 392
Sanmina Corp. (b) 5,500 373
NeoMagic Corp. (b) 21,000 268
Coherent Communications Systems Corp. (b) 8,300 231
World Access, Inc. (b) 9,200 220
CHS Electronics, Inc. (b) 11,900 204
Gilat Satellite Networks Limited (b) 6,900 198
Visio Corp. (b) 4,800 184
RadiSys Corp. (b) 4,000 149
Technitrol, Inc. 1,000 30
-------
3,084
TRANSPORTATION 3.1%
U.S. Xpress Enterprises, Inc. (b) 18,400 407
USFreightways Corp. 11,600 377
Wabash National Corp. 8,500 242
America West Airlines, Inc. `B' (b) 10,300 192
-------
1,218
UTILITIES 1.3%
Oneok, Inc. 12,200 493
-------
Total Common Stocks 37,067
(Cost $28,026) =======
42 PIMCO Funds See accompanying notes
<PAGE>
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 6.9%
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 6.9%
State Street Bank
4.250% due 01/02/98 $ 2,680 $ 2,680
(Dated 12/31/97. Collateralized by
U.S. Treasury Note 6.000% 05/31/98
valued at $2,738,148. Repurchase
proceeds are $2,680,633.)
-----------
Total Short-Term Instruments 2,680
(Cost $2,680) ===========
Total Investments (a) 101.9% $ 39,747
(Cost $30,706)
Other Assets and Liabilities (Net) (1.9%) (732)
-----------
Net Assets 100.0% $ 39,015
===========
Notes to Schedule of Investments ($ in thousands):
(a) At December 31, 1997, 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 $ 9,794
Aggregate gross unrealized depreciation for all
investments in which there was an excess of tax cost
over value (753)
-----------
Unrealized appreciation-net $ 9,041
===========
(b) Non-income producing security
1997 Semiannual Report See accompanying notes 43
<PAGE>
Schedule of Investments
Renaissance Fund
December 31, 1997 (Unaudited)
Value
Shares (000s)
- --------------------------------------------------------------------------------
COMMON STOCKS 87.7%
- --------------------------------------------------------------------------------
CAPITAL GOODS 5.3%
Trinity Industries, Inc. 266,500 $ 11,893
Kuhlman Corp. 192,200 7,520
Eaton Corp. 62,900 5,614
---------
25,027
COMMUNICATIONS 11.4%
AT&T Corp. 243,900 14,939
Bell Atlantic Corp. 151,500 13,787
SBC Communications, Inc. 184,300 13,500
U.S. West Media Group (b) 395,400 11,417
---------
53,643
CONSUMER DISCRETIONARY 8.9%
Tandy Corp. 343,900 13,262
Pier 1 Imports, Inc. 441,987 10,000
Ford Motor Co. 194,700 9,479
Hasbro, Inc. 292,200 9,204
---------
41,945
CONSUMER STAPLES 7.7%
Dean Foods Co. 353,100 21,009
International Home Foods, Inc. (b) 200,200 5,606
American Italian Pasta Co. `A' (b) 206,100 5,153
Fresh Del Monte Produce, Inc. (b) 316,000 4,622
---------
36,390
ENERGY 5.5%
Sun Co., Inc. 243,400 10,238
Atlantic Richfield Co. 83,900 6,722
Valero Energy Corp. 147,200 4,628
Texaco, Inc. 83,100 4,519
---------
26,107
ENVIRONMENTAL SERVICES 2.2%
Browning Ferris Industries, Inc. 280,500 10,379
FINANCIAL AND BUSINESS SERVICES 19.8%
Capital One Financial Corp. 247,900 13,433
Banc One Corp. 243,000 13,198
Fremont General Corp. 198,300 10,857
First Union Corp. 182,050 9,330
Conseco, Inc. 187,500 8,519
Equitable Cos., Inc. 170,200 8,467
Transamerica Corp. 75,700 8,062
CIT Group, Inc. `A' (b) 225,100 7,259
Allstate Corp. 78,300 7,115
BankAmerica Corp. 94,800 6,920
---------
93,160
HEALTH CARE 2.0%
McKesson Corp. 85,900 9,293
MATERIALS AND PROCESSING 9.6%
Ball Corp. 355,200 12,543
Martin Marietta Materials, Inc. 251,200 9,185
Akzo Nobel NV SP - ADR 102,600 8,913
Vulcan Materials Co. 80,100 8,180
Calmat Co. 221,800 6,183
---------
45,004
TECHNOLOGY 6.0%
Electronic Data Systems Corp. 254,300 11,173
International Business Machines Corp. 104,100 10,885
Gateway 2000, Inc. (b) 191,600 6,251
---------
28,309
TRANSPORTATION 4.3%
Canadian National Railway Co. 192,300 9,086
U.S. Airways Group, Inc. (b) 109,100 6,819
USFreightways Corp. 139,800 4,544
---------
20,449
UTILITIES 5.0%
Florida Progress Corp. 233,400 9,161
Boston Edison Co. 143,800 5,446
UtiliCorp United, Inc. 116,500 4,522
FirstEnergy Corp. (b) 144,800 4,199
---------
23,328
---------
Total Common Stocks 413,034
(Cost $354,269) =========
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
CONVERTIBLE BONDS AND NOTES 5.6%
- --------------------------------------------------------------------------------
INDUSTRIAL 5.6%
Pier 1 Imports, Inc.
5.750% due 10/01/03 $ 2,650 $ 5,042
SCI Systems, Inc.
5.000% due 05/01/06 7,750 14,463
Solectron Corp.
6.000% due 03/01/06 5,000 6,906
---------
Total Convertible Bonds and Notes 26,411
(Cost $19,328) =========
- --------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK 2.1%
- --------------------------------------------------------------------------------
Shares
CONSUMER DISCRETIONARY 1.1%
TJX Cos 14,100 5,358
FINANCIAL SERVICES 1.0%
American Bankers Insurance 50,900 4,769
---------
Total Convertible Preferred Stock 10,127
(Cost $5,438) =========
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 5.4%
- --------------------------------------------------------------------------------
Principal
Amount
(000s)
COMMERCIAL PAPER 5.4%
BBV Finance Delaware, Inc.
5.820% due 01/09/98 $ 6,900 6,892
CIESCO LP
6.150% due 01/12/98 1,000 998
E.I. Du Pont de Nemours
6.000% due 01/13/98 5,500 5,490
Goldman Sachs & Co.
5.900% due 01/07/98 7,000 6,994
UBS Finance (de), Inc.
6.250% due 01/02/98 3,800 3,800
6.500% due 01/02/98 1,300 1,300
---------
Total Short-Term Instruments 25,474
(Cost $25,474) =========
Total Investments (a) 100.8% $ 475,046
(Cost $404,509)
Other Assets and Liabilities (Net) (0.8%) (3,943)
---------
Net Assets 100.0% $ 471,103
=========
Notes to Schedule of Investments ($ in thousands):
(a) At December 31, 1997, 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 $ 73,511
Aggregate gross unrealized depreciation for all
investments in which there was an excess of
tax cost over value (2,974)
---------
Unrealized appreciation-net $ 70,537
=========
(b) Non-income producing security.
44 PIMCO Funds See accompanying notes
<PAGE>
Schedule of Investments
Core Equity Fund
December 31, 1997 (Unaudited)
Value
Shares (000s)
- --------------------------------------------------------------------------------
COMMON STOCKS 94.4%
- --------------------------------------------------------------------------------
AEROSPACE 1.1%
Boeing Co. 22,700 $ 1,111
COMMUNICATIONS 7.8%
AT&T Corp. 50,300 3,081
Tele-Communications `A' (b) 104,168 2,910
Nextel Communications, Inc. `A' (b) 71,200 1,851
------------
7,842
CONSUMER DISCRETIONARY 19.7%
Cendant Corp. (b) 92,700 3,187
TJX Corp., Inc. 79,200 2,722
Costco Cos. (b) 55,900 2,495
Home Depot, Inc. 41,450 2,440
CVS Corp. 37,900 2,428
New York Times Co. 34,000 2,248
Dayton Hudson Corp. 27,700 1,870
Mattel, Inc. 32,500 1,211
Masco Corp. 22,300 1,134
------------
19,735
CONSUMER SERVICES 2.3%
CBS Corp. 79,900 2,352
CONSUMER STAPLES 4.1%
Safeway, Inc. (b) 49,100 3,106
Sara Lee Corp. 17,400 980
------------
4,086
ENERGY 6.0%
Schlumberger Limited 40,500 3,260
Atlantic Richfield Co. 18,500 1,482
AES Corp (b) 28,000 1,306
------------
6,048
FINANCIAL AND BUSINESS SERVICES 13.8%
Washington Mutual, Inc. 34,500 2,202
Morgan Stanley, Dean Witter, Discover and Co. 34,800 2,058
Associates First Capital Corp. `A' 27,100 1,927
Capital One Financial Corp. 35,100 1,902
Travelers Group, Inc. 31,350 1,689
BankAmerica Corp. 22,600 1,650
Countrywide Credit Industries, Inc. 29,300 1,256
CIT Group, Inc. `A' (b) 30,700 990
------------
13,674
HEALTH CARE 17.7%
HBO & Co. 94,100 4,517
Eli Lilly & Co. 55,000 3,829
Pfizer, Inc. 44,600 3,325
Warner Lambert Co. 16,500 2,046
Guidant Corp. 26,900 1,674
Medtronic, Inc. 28,000 1,465
Cardinal Health, Inc. 12,900 969
------------
17,825
MATERIALS AND PROCESSING 4.2%
Tyco International Limited (b) 41,500 1,870
Fort James Corp. 34,000 1,301
Georgia-Pacific Corp. 16,600 1,008
------------
4,179
TECHNOLOGY 14.0%
America Online, Inc. (b) 32,400 2,890
Cisco Systems, Inc. (b) 48,000 2,676
Intel Corp. 28,800 2,023
Microsoft Corp. (b) 14,900 1,926
Lucent Technologies, Inc. 23,200 1,853
Electronic Data Systems Corp. 33,700 1,481
Gateway 2000, Inc. (b) 36,000 1,174
------------
14,023
TRANSPORTATION 3.7%
Delta Air Lines, Inc. 18,300 2,178
Federal Express Corp. (b) 25,400 1,551
------------
3,729
------------
Total Common Stocks 94,604
(Cost $84,829) ============
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 6.3%
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 6.3%
State Street Bank
4.250% due 01/02/98 $ 6,269 $ 6,269
(Dated 12/31/97. Collateralized by
U.S. Treasury Note 6.000% 05/31/98
valued at $6,397,401. Repurchase
proceeds are $6,270,480.)
------------
Total Short-Term Instruments 6,269
(Cost $6,269) ============
Total Investments (a) 100.7% $ 100,873
(Cost $91,098)
Written Options (c) 0.0% (34)
(Premiums $25)
Other Assets and Liabilities (Net) (0.7%) (719)
------------
Net Assets 100.0% $ 100,120
============
Notes to Schedule of Investments ($ in thousands):
(a) At December 31, 1997, 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 $ 10,711
Aggregate gross unrealized depreciation for all
investments in which there was an excess of
tax cost over value (936)
------------
Unrealized appreciation-net $ 9,775
============
(b) Non-income producing security.
(c) Premiums received on written options:
Premiums
Type Contracts Received
- --------------------------------------------------------------------------------
Call - Guidant Corp.
Strike @ 65.00 Exp. 01/15/98 23 $ 5 $ (3)
Call - HBO & Co.
Strike @ 45.00 Exp. 01/15/98 48 9 (17)
Call - Schlumberger Limited
Strike @ 80.00 Exp. 01/15/98 41 11 (14)
---------------------------
$ 25 $ (34)
===========================
1997 Semiannual Report See accompanying notes 45
<PAGE>
Schedule of Investments
Mid Cap Equity Fund
December 31, 1997 (Unaudited)
Value
Shares (000s)
- --------------------------------------------------------------------------------
COMMON STOCKS 91.3%
- --------------------------------------------------------------------------------
COMMUNICATIONS 6.7%
Teleport Communications Group, Inc. (b) 4,100 $ 225
Paging Network, Inc. (b) 17,500 188
Nextel Communications, Inc. `A' (b) 3,100 81
---------
494
CONSUMER DISCRETIONARY 19.2%
Intuit, Inc. (b) 6,000 248
Abercrombie & Fitch Co. `A' (b) 7,000 219
Sunbeam-Oster, Inc. 4,400 185
Fred Meyer, Inc. (b) 4,900 178
AMF Bowling, Inc. (b) 6,500 163
A.H. Belo Corp. 2,800 157
Michaels Stores, Inc. (b) 3,900 114
Hasbro, Inc. 2,800 88
Black & Decker Corp. 1,800 70
---------
1,422
CONSUMER SERVICES 5.8%
Darden Restaurants, Inc. 12,500 156
Jacor Communications, Inc. (b) 2,300 122
Apollo Group, Inc. `A' (b) 1,600 76
Bob Evans Farms, Inc. 3,300 73
---------
427
CONSUMER STAPLES 2.1%
International Home Foods, Inc. (b) 5,600 157
ENERGY 8.2%
Sun Co., Inc. 4,300 181
Weatherford Enterra, Inc. (b) 4,000 175
Santa Fe Energy Resources, Inc. (b) 10,100 114
Anadarko Petroleum Corp. 1,200 73
Grey Wolf, Inc. (b) 12,500 67
---------
610
ENVIRONMENTAL SERVICES 2.1%
Allied Waste Industries, Inc. (b) 6,600 154
FINANCIAL AND BUSINESS SERVICES 22.7%
Dime Bancorp, Inc. 12,400 375
Charter One Financial, Inc. 2,670 169
Providian Financial Corp. (b) 3,400 154
Marshall & Ilsley Corp. 2,200 137
T. Rowe Price Associates 2,100 132
AccuStaff, Inc. (b) 5,400 124
CIT Group, Inc. `A' (b) 3,800 122
Capital One Financial Corp. 2,000 108
Golden West Financial Corp. 1,100 108
Union Planters Corp. 1,400 95
First Tennessee National Corp. 1,200 80
Catellus Development Corp. (b) 3,700 74
---------
1,678
HEALTH CARE 1.5%
Mentor Corp. 3,000 110
MATERIALS AND PROCESSING 1.5%
Solutia, Inc. 4,100 109
MISCELLANEOUS 4.1%
Federal-Mogul Corp. 4,000 162
Ceridian Corp. (b) 3,100 142
---------
304
TECHNOLOGY 14.0%
Unisys Corp. (b) 12,200 169
Symantec Corp. (b) 6,800 149
National Semiconductor Corp. (b) 5,300 137
Electronic Arts, Inc. (b) 3,500 132
Sanmina Corp. (b) 1,800 122
Check Point Software Technologies Limited (b) 2,900 118
American Power Conversion Corp. (b) 4,800 113
Lam Research Corp. (b) 2,000 59
Adtran, Inc. (b) 1,300 36
---------
1,035
TRANSPORTATION 3.4%
Southwest Airlines Co. 7,150 $ 176
Yellow Corp. (b) 3,100 78
---------
254
---------
Total Common Stocks 6,754
(Cost $6,354) =========
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 11.7%
- --------------------------------------------------------------------------------
Principal
Amount
(000s)
REPURCHASE AGREEMENTS 11.7%
State Street Bank
4.250% due 01/02/98 $ 862 862
(Dated 12/31/97. Collateralized by U.S.
Treasury Note 5.750% 09/30/99 valued
at $882,915. Repurchase proceeds
are $862,204.)
---------
Total Short-Term Instruments 862
(Cost $862) =========
Total Investments (a) 103.0% $ 7,616
(Cost $7,216)
Other Assets and Liabilities (Net) (3.0%) (221)
---------
Net Assets 100.0% $ 7,395
=========
Notes to Schedule of Investments ($ in thousands):
(a) At December 31, 1997, 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. $ 684
Aggregate gross unrealized depreciation for all
investments in which there was an excess of
tax cost over value. (284)
---------
Unrealized appreciation-net $ 400
=========
(b) Non-income producing security.
46 PIMCO Funds See accompanying notes
<PAGE>
Schedule of Investments
Equity Income Fund
December 31, 1997 (Unaudited)
Value
Shares (000s)
- --------------------------------------------------------------------------------
COMMON STOCKS 96.5%
- --------------------------------------------------------------------------------
CAPITAL GOODS 3.9%
GATX Corp. 52,900 $ 3,839
BFGoodrich Co. 71,100 2,946
------------
6,785
CONSUMER DISCRETIONARY 18.5%
Maytag Corp. 101,100 3,772
Ford Motor Co. 72,600 3,535
American Greetings Corp. `A' 89,700 3,510
Springs Industries, Inc. `A' 66,500 3,458
Penny J.C., Inc. 53,000 3,196
Chrysler Corp. 89,360 3,144
Brunswick Corp. 103,000 3,122
VF Corp. 66,600 3,059
Whirlpool Corp. 55,500 3,053
John H. Harland Co. 85,100 1,787
------------
31,636
CONSUMER STAPLES 10.1%
RJR Nabisco Holdings Corp. 190,200 7,132
SUPERVALU, Inc. 163,300 6,838
Anheuser Busch Cos., Inc. 77,700 3,419
------------
17,389
ENERGY 9.2%
Occidental Petroleum Corp. 122,500 3,591
Atlantic Richfield Co. 39,500 3,165
Repsol SA SP - ADR 73,000 3,107
Ultramar Diamond Shamrock Corp. 96,400 3,073
Amoco Corp. 34,700 2,954
------------
15,890
FINANCIAL AND BUSINESS SERVICES 12.9%
PNC Bank Corp. 129,900 7,412
CIGNA Corp. 19,500 3,375
Ohio Casualty Corp. 70,000 3,124
Bankers Trust New York Corp. 26,500 2,980
Chase Manhattan Corp. 27,156 2,973
Capstead Mortgage Corp. 117,500 2,343
------------
22,207
HEALTH CARE 4.0%
Pharmacia & Upjohn, Inc. 96,895 3,549
American Home Products Corp. 44,700 3,420
------------
6,969
MATERIALS AND PROCESSING 11.1%
Dow Chemical Co. 34,500 3,502
Vulcan Materials Co. 31,700 3,237
USX-U.S. Steel Group, Inc. 102,400 3,200
Westvaco Corp. 101,200 3,181
Phelps Dodge Corp. 48,500 3,019
Union Carbide Corp. 68,000 2,920
------------
19,059
TECHNOLOGY 3.8%
International Business Machines Corp. 32,500 3,398
Harris Corp. 69,200 3,175
------------
6,573
TRANSPORTATION 1.7%
Illinois Central Corp. 87,300 2,974
UTILITIES 21.3%
Southern New England Telecommunications Corp. 155,200 7,809
Washington Water Power Co. 157,000 3,817
U.S. West Communications Group 83,000 3,745
Bell Atlantic Corp. 40,166 3,655
Peoples Energy Corp. 92,000 3,622
PG & E Corp. 118,600 3,610
DTE Energy Co. 103,000 3,573
NICOR, Inc. 82,200 3,468
P.P. & L. Resources, Inc. 140,000 3,351
------------
36,650
------------
Total Common Stocks 166,132
(Cost $132,695) ============
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 3.4%
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 3.4%
State Street Bank
4.250% due 01/02/98 $ 5,854 $ 5,854
(Dated 12/31/97. Collateralized by U.S.
Treasury Note 6.000% 05/31/98 valued at
$5,974,598. Repurchase proceeds
are $5,855,382.)
------------
Total Short-Term Instruments 5,854
(Cost $5,854) ============
TOTAL INVESTMENTS (A) 99.9% $ 171,986
(Cost $138,549)
OTHER ASSETS AND LIABILITIES (NET) 0.1% 152
------------
NET ASSETS 100.0% $ 172,138
============
NOTES TO SCHEDULE OF INVESTMENTS ($ IN THOUSANDS):
(a) At December 31, 1997, 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 $ 35,052
Aggregate gross unrealized depreciation for all
investments in which there was an
excess of tax cost over value (1,615)
------------
Unrealized appreciation-net $ 33,437
============
(b) Non-income producing security
1997 Semiannual Report See accompanying notes 47
<PAGE>
Schedule of Investments
Value Fund
December 31, 1997 (Unaudited)
Value
Shares (000s)
- --------------------------------------------------------------------------------
COMMON STOCKS 98.0%
- --------------------------------------------------------------------------------
CAPITAL GOODS 4.5%
Northrop Grumman Corp. 37,000 $ 4,255
AGCO Corp. 69,700 2,012
Wheelabrator Technologies, Inc. 115,000 1,847
GATX Corp. 17,000 1,234
-----------
9,348
CONSUMER DISCRETIONARY 20.6%
American Greetings Corp. `A' 160,000 6,260
Maytag Corp. 160,000 5,970
Dillards, Inc. `A' 120,000 4,230
Chrysler Corp. 120,000 4,222
Washington Post Co. 8,600 4,184
VF Corp. 91,000 4,180
Tupperware Corp. 145,000 4,042
Brunswick Corp. 130,000 3,940
Tandy Corp. 100,000 3,856
Springs Industries, Inc. `A' 19,000 988
Goodyear Tire & Rubber Co. 14,700 935
-----------
42,807
CONSUMER STAPLES 10.3%
SUPERVALU, Inc. 150,000 6,281
RJR Nabisco Holdings Corp. 111,300 4,174
Anheuser Busch Cos., Inc. 90,200 3,969
Whitman Corp. 146,500 3,818
Unilever NV 32,400 2,023
IBP, Inc. 55,000 1,151
-----------
21,416
ENERGY 10.3%
Atlantic Richfield Co. 76,400 6,122
Ultramar Diamond Shamrock Corp. 150,800 4,807
Amoco Corp. 45,000 3,831
Repsol SA SP - ADR 83,000 3,533
Tidewater, Inc. 55,800 3,076
-----------
21,369
FINANCIAL AND BUSINESS SERVICES 11.8%
Bear Stearns Cos. 128,782 6,117
CIGNA Corp. 27,700 4,794
Chase Manhattan Corp. 37,000 4,051
PNC Bank Corp. 70,000 3,994
Countrywide Credit Industries, Inc. 60,000 2,572
Loews Corp. 19,000 2,016
Bankers Trust New York Corp. 9,000 1,012
-----------
24,556
HEALTH CARE 5.3%
American Home Products Corp. 55,000 4,208
Beckman Instruments, Inc. 80,000 3,200
Pharmacia & Upjohn, Inc. 68,410 2,505
Foundation Health Systems `A' (b) 52,000 1,164
-----------
11,077
MATERIALS AND PROCESSING 10.2%
Westvaco Corp. 175,000 5,501
USG Corp. (b) 90,000 4,410
Phelps Dodge Corp. 65,500 4,077
Union Carbide Corp. 91,300 3,920
Wellman, Inc. 171,100 3,336
-----------
21,244
TECHNOLOGY 9.3%
Adobe Systems, Inc. 104,700 4,319
Harris Corp. 89,700 4,115
International Business Machines Corp. 38,300 4,005
Tektronix, Inc. 87,000 3,453
Teradyne, Inc. (b) 113,200 2,385
Seagate Technology, Inc. (b) 51,700 995
-----------
19,272
TRANSPORTATION 2.1%
UAL Corp. (b) 47,100 4,357
UTILITIES 13.6%
PG & E Corp. 198,300 6,036
Bell Atlantic Corp. 66,300 6,033
DTE Energy Co. 163,000 5,654
Southern New England Telecommunications Corp. 100,000 5,031
NICOR, Inc. 111,300 4,695
Peoples Energy Corp. 22,000 866
-----------
28,315
-----------
Total Common Stocks 203,761
(Cost $178,005) ===========
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 1.1%
- --------------------------------------------------------------------------------
Principal
Amount
(000s)
REPURCHASE AGREEMENTS 1.1%
State Street Bank
4.250% due 01/02/98 $ 2,239 2,239
(Dated 12/31/97. Collateralized by U.S.
Treasury Note 6.000% 05/31/98 valued
at $2,285,145. Repurchase proceeds
are $2,239,529.)
-----------
Total Short-Term Instruments 2,239
(Cost $2,239) ===========
Total Investments (a) 99.1% $ 206,000
(Cost $180,244)
Other Assets and Liabilities (Net) 0.9% 1,965
-----------
Net Assets 100.0% $ 207,965
===========
Notes to Schedule of Investments ($ in thousands):
(a) At December 31, 1997, 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. $ 31,113
Aggregate gross unrealized depreciation for all investments
in which there was an excess of tax cost over value. (5,357)
-----------
Unrealized appreciation-net $ 25,756
===========
(b) Non-income producing security.
48 PIMCO Funds See accompanying notes
<PAGE>
Schedule of Investments
Small Cap Value Fund
December 31, 1997 (Unaudited)
Value
Shares (000s)
- --------------------------------------------------------------------------------
COMMON STOCKS 91.0%
- --------------------------------------------------------------------------------
CAPITAL GOODS 8.5%
Del Webb Corp. 91,100 $ 2,368
Westinghouse Air Brake Co. 91,000 2,332
C&D Technologies, Inc. 46,800 2,258
Zurn Industries, Inc. 67,000 2,106
Gleason Corp. 78,100 2,104
Allied Products Corp. 85,500 2,052
Barnes Group, Inc. 90,000 2,048
Tecumseh Products Co. `A' 41,900 2,043
Oshkosh Truck Corp. `B' 109,400 1,976
Nacco Industries, Inc. `A' 7,800 836
-----------
20,123
CONSUMER DISCRETIONARY 13.0%
Fleetwood Enterprises, Inc. 57,700 2,449
Harman International Industries, Inc. 54,000 2,292
Stanhome, Inc. 88,000 2,261
Borg-Warner Automotive, Inc. 43,000 2,236
Fedders USA, Inc. 350,000 2,188
Toro Co. 50,500 2,153
Bowne & Co., Inc. 53,100 2,117
Guilford Mills, Inc. 77,050 2,109
Garan, Inc. 81,600 2,101
La-Z-Boy Inc. 48,200 2,079
Sturm Ruger & Co., Inc. 112,500 2,074
Brown Group, Inc. 150,000 1,997
Ennis Business Forms 213,800 1,978
Rival Co. 144,300 1,894
Burlington Coat Factory Warehouse Corp. 42,500 698
-----------
30,626
CONSUMER SERVICES 2.5%
Lubys Cafeterias, Inc. 118,500 2,081
Chemed Corp. 49,700 2,059
Applebee's International, Inc. 94,400 1,705
-----------
5,845
CONSUMER STAPLES 3.5%
DIMON, Inc. 83,000 2,179
Nash Finch Co. 114,400 2,174
Universal Corp. 49,700 2,044
Marsh Supermarkets, Inc. `B' 111,400 1,664
Great Atlantic & Pacific Tea Co., Inc. 4,000 119
-----------
8,180
ENERGY 6.6%
Vintage Petroleum, Inc. 120,000 2,280
World Fuel Services Corp. 108,500 2,278
Offshore Logistics, Inc. (b) 105,450 2,254
Mitchell Energy & Development Corp. `B' 77,000 2,243
Snyder Oil Corp. 120,000 2,190
Western Gas Resources, Inc. 97,000 2,146
Aquila Gas Pipeline Corp. 160,000 2,060
-----------
15,451
FINANCIAL AND BUSINESS SERVICES 19.6%
Interra Financial, Inc. 35,600 2,456
McGrath Rentcorp 99,000 2,426
Southwest Securities Group, Inc. 89,200 2,297
BankAtlantic Bancorp, Inc. `A' 135,500 2,210
Merrill Corp. 94,700 2,202
PXRE Corp. 66,000 2,190
Orion Capital Corp. 47,000 2,183
Centris Group, Inc. 97,000 2,164
FirstBank Puerto Rico 63,500 2,163
Capstead Mortgage Corp. 108,000 2,153
Glimcher Realty Trust 95,100 2,146
AmerUs Life Holdings, Inc. 57,894 2,135
TriNet Corp. Realty Trust, Inc. 55,000 2,128
Excel Realty Trust, Inc. 67,200 2,117
Kelly Services, Inc. 70,000 2,100
United Dominion Realty Trust 148,815 2,074
Eaton Vance Corp. 54,600 2,061
Commercial Federal Corp. 57,750 2,054
American Health Properties, Inc. 74,300 2,048
Sovereign Bancorp, Inc. 97,720 2,028
SIS Bancorp, Inc. 37,700 1,515
First Hawaiian, Inc. 24,100 958
Chittenden Corp. 9,162 321
-----------
46,129
HEALTH CARE 2.8%
Bergen Brunswig Corp. `A' 52,618 2,217
Bindley Western Industries, Inc. 71,000 2,192
Integrated Health Services, Inc. 68,300 2,130
-----------
6,539
MATERIALS AND PROCESSING 17.6%
Continental Homes Holding Corp. 62,200 2,503
GenCorp, Inc. 91,000 2,275
Commonwealth Industries, Inc. 152,000 2,204
Caraustar Industries, Inc. 62,700 2,147
Kaman Corp. 131,000 2,145
Ethyl Corp. 277,000 2,129
Zeigler Coal Holding Co. 130,500 2,129
Butler Manufacturing Co. 65,600 2,116
Universal Forest Products, Inc. 155,000 2,112
Quanex Corp. 75,000 2,109
Southdown, Inc. 35,700 2,106
Wausau-Mosinee Paper Corp. 104,000 2,093
Castle (A.M.) & Co. 91,100 2,084
Park Electrochemical Corp. 72,900 2,068
Texas Industries, Inc. 45,900 2,066
Intermet Corp. 118,000 2,065
Commercial Metals Co. 65,000 2,051
Cleveland-Cliffs, Inc. 44,400 2,034
Mississippi Chemical Corp. 106,700 1,947
Wellman, Inc. 53,300 1,039
-----------
41,422
TECHNOLOGY 5.3%
Innovex, Inc. 98,300 2,255
Dallas Semiconductor Corp. 53,000 2,160
Cohu, Inc. 69,000 2,113
Thiokol Corp. 26,000 2,113
Pioneer Standard Electronics, Inc. 138,000 2,104
MTS Systems Corp. 45,700 1,714
-----------
12,459
TRANSPORTATION 3.6%
Roadway Express, Inc. 104,000 2,301
USFreightways Corp. 69,000 2,242
Sea Containers Limited `A' 65,000 2,080
ASA Holdings, Inc. 69,100 1,965
-----------
8,588
UTILITIES 8.0%
Rochester Gas & Electric Corp. 70,000 2,380
Public Service Co. of New Mexico 92,500 2,191
United Illuminating Co. 47,600 2,187
Commonwealth Energy System 64,900 2,158
Eastern Enterprises 47,600 2,142
Eastern Utilities Assn. 80,700 2,118
Aliant Communications, Inc. 65,200 2,046
Southern California Water Co. 80,700 2,027
Energen Corp. 39,000 1,550
-----------
18,799
-----------
Total Common Stocks 214,161
(Cost $193,361) ===========
1997 Semiannual Report See accompanying notes 49
<PAGE>
Schedule of Investments (Cont.)
Small Cap Value Fund
December 31, 1997 (Unaudited)
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 9.1%
- --------------------------------------------------------------------------------
Repurchase Agreements 9.1%
State Street Bank
4.250% due 01/02/98 $ 21,526 21,526
(Dated 12/31/97. Collateralized by U.S.
Treasury Note 6.000% 05/31/98 valued
at $21,960,550. Repurchase proceeds
are $21,531,083.)
---------
Total Short-Term Instruments 21,526
(Cost $21,526) =========
Total Investments (a) 100.1% $ 235,687
(Cost $214,887)
Other Assets and Liabilities (Net) (0.1%) (140)
---------
Net Assets 100.0% $ 235,547
=========
Notes to Schedule of Investments ($ in thousands):
(a) At December 31, 1997, 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. $ 26,762
Aggregate gross unrealized depreciation for all
investments in which there was an excess of
tax cost over value. (5,962)
--------
Unrealized appreciation-net $ 20,800
========
(b) Non-income producing security.
50 PIMCO Funds See accompanying notes
<PAGE>
Schedule of Investments
Enhanced Equity Fund
December 31, 1997 (Unaudited)
Value
Shares (000s)
- --------------------------------------------------------------------------------
COMMON STOCKS 98.8%
- --------------------------------------------------------------------------------
CAPITAL GOODS 7.8%
Caterpillar, Inc. 15,400 $ 748
General Electric Co. 8,000 587
Johnson Controls, Inc. 7,800 373
Deere & Co. 6,300 367
Tyco International Limited (b) 6,800 306
Centex Corp. 3,000 189
AlliedSignal, Inc. 3,600 140
Timken Co. 3,600 124
Paccar, Inc. 2,100 110
Raychem Corp. 2,200 95
Archer-Daniels-Midland Co. 3,800 82
Case Corp. 1,300 79
United Technologies Corp. 1,000 73
Nacco Industries, Inc. `A' 500 54
Avery Dennison Corp. 1,100 49
Raytheon Co. `A' 453 22
----------
3,398
CONSUMER DISCRETIONARY 16.8%
Ford Motor Co. 21,100 1,027
Gannett, Inc. 11,600 717
Procter & Gamble Co. 8,600 686
Dayton Hudson Corp. 8,800 594
Kroger Co. (b) 13,200 488
Pitney Bowes, Inc. 5,300 477
General Motors Corp. 7,100 430
Corning, Inc. 8,800 327
New York Times Co. 4,900 324
Federated Department Stores, Inc. (b) 5,800 250
Liz Claiborne, Inc. 5,900 247
Wal-Mart Stores, Inc. 6,000 237
TJX Corp., Inc. 6,400 220
Masco Corp. 4,000 204
Time Warner, Inc. 2,600 161
Hasbro, Inc. 4,950 156
Ralston-Ralston Purina Group 1,601 149
Sears Roebuck & Co. 2,000 91
Stride Rite Corp. 7,000 84
VF Corp. 1,800 83
Costco Cos. (b) 1,800 80
Tandy Corp. 2,000 77
Brunswick Corp. 2,500 76
Woolworth Corp. 2,800 57
Alberto-Culver Co. 1,500 48
Fleming Cos., Inc. 1,493 20
----------
7,310
CONSUMER SERVICES 1.1%
Hilton Hotels Corp. 10,100 300
Cendant Corp. (b) 4,300 148
Tricon Global Restaurants, Inc. (b) 530 15
----------
463
CONSUMER STAPLES 6.3%
Philip Morris Co., Inc. 13,600 616
Coca-Cola Co. 6,600 440
Sara Lee Corp. 7,800 439
Unilever NV 6,300 393
Kellogg Co. 5,100 253
Quaker Oats Co. 4,000 211
Clorox Co. 2,400 190
Adolph Coors Co. `B' 2,000 67
ConAgra, Inc. 2,000 66
Campbell Soup Co. 1,000 58
----------
2,733
ENERGY 9.1%
Exxon Corp. 16,400 1,003
Chevron Corp. 7,200 554
Halliburton Co. 10,200 530
Texaco, Inc. 6,336 345
Royal Dutch Petroleum Co. 6,000 325
Schlumberger Limited 3,000 242
Rowan Cos., Inc. (b) 6,500 198
Baker Hughes, Inc. 3,700 161
Phillips Petroleum Co. 3,300 160
Helmerich & Payne, Inc. 1,900 129
Burlington Resources, Inc. 2,300 103
USX Marathon Group 2,100 71
Ashland, Inc. 1,300 70
Sun Co., Inc. 1,500 63
Unocal Corp. 29 1
----------
3,955
FINANCIAL AND BUSINESS SERVICES 17.9%
Morgan Stanley, Dean Witter, Discover and Co. 15,330 906
Allstate Corp. 8,100 736
BankAmerica Corp. 8,700 635
NationsBank Corp. 10,232 622
Merrill Lynch & Co. 6,500 474
Chase Manhattan Corp. 4,079 447
CIGNA Corp. 2,400 415
Hartford Financial Services Group, Inc. 4,400 412
MBNA Corp. 15,000 410
American International Group, Inc. 3,700 402
Travelers Group, Inc. 6,750 364
First Union Corp. 6,230 319
Household International, Inc. 2,100 268
Citicorp 1,983 251
Torchmark Corp. 5,200 219
SunAmerica, Inc. 5,050 216
Conseco, Inc. 3,800 173
Aegon NV 1,824 163
MBIA, Inc. 1,600 107
State Street Corp. 1,500 87
Aetna, Inc. 900 64
Green Tree Financial Corp. 2,100 55
----------
7,745
HEALTH CARE 10.4%
Merck & Co., Inc. 10,000 1,063
Schering-Plough Corp. 12,600 783
Bristol-Myers Squibb Co. 7,300 691
Tenet Healthcare Corp. (b) 14,000 464
Becton Dickinson & Co. 6,800 340
Johnson & Johnson 3,600 237
Humana, Inc. (b) 9,300 193
Beverly Enterprises, Inc. (b) 13,800 179
Pfizer, Inc. 1,600 119
CVS Corp. 1,800 115
Cardinal Health, Inc. 1,300 98
Eli Lilly & Co. 1,200 84
ALZA Corp. (b) 1,600 51
U.S. Surgical Corp. 1,100 32
PharMerica, Inc. (b) 2,867 30
Crescendo Pharmaceuticals Corp. (b) 80 1
----------
4,480
MATERIALS AND PROCESSING 3.6%
Dow Chemical Co. 4,000 406
Fort James Corp. 7,500 287
Phelps Dodge Corp. 2,700 168
Rohm & Haas Co. 1,700 163
USX-U.S. Steel Group, Inc. 4,800 150
Union Carbide Corp. 3,400 146
Aluminum Co. of America 1,400 99
Bethlehem Steel Corp. (b) 6,400 55
Inland Steel Industries, Inc. 2,000 34
Armco, Inc. (b) 6,100 30
Solutia, Inc. 860 23
----------
1,561
TECHNOLOGY 13.4%
Microsoft Corp. (b) 9,100 1,176
Compaq Computer Corp. (b) 15,187 857
Intel Corp. 8,600 604
Sun Microsystems, Inc. (b) 14,700 586
Lucent Technologies, Inc. 6,700 535
International Business Machines Corp. 4,900 512
EMC Corp. (b) 16,600 455
Texas Instruments, Inc. 7,000 315
Motorola, Inc. 4,700 268
Harris Corp. 3,000 138
Dell Computer Corp. (b) 1,400 118
Applied Materials, Inc. (b) 2,900 87
1997 Semiannual Report See accompanying notes 51
<PAGE>
Schedule of Investments (Cont.)
Enhanced Equity Fund
December 31, 1997
Value
Shares (000s)
- -------------------------------------------------------------------------------
General Dynamics Corp. 700 $ 61
Data General Corp. (b) 2,800 49
KLA-Tencor Corp. (b) 700 27
----------
5,788
TRANSPORTATION 2.9%
AMR Corp. (b) 5,200 668
U.S. Airways Group, Inc. (b) 5,200 325
Laidlaw, Inc. 18,700 255
----------
1,248
UTILITIES 9.5%
BellSouth Corp. 16,370 922
Bell Atlantic Corp. 8,759 797
Ameritech Corp. 6,800 547
U.S. West Communications Group 8,400 379
Columbia Gas Systems, Inc. 3,200 251
AirTouch Communications, Inc. (b) 6,000 249
GPU, Inc. 4,600 194
P.P. & L. Resources, Inc. 6,200 148
AT&T Corp. 1,700 104
Coastal Corp. 1,500 93
Dominion Resources, Inc. 2,000 85
Edison International 3,100 84
NICOR, Inc. 1,900 80
Peoples Energy Corp. 1,900 75
Pacific Enterprises 1,700 64
FPL Group, Inc. 1,000 59
----------
4,131
----------
Total Common Stocks 42,812
(Cost $32,981) ==========
- -------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 1.1%
- -------------------------------------------------------------------------------
Principal
Amount
(000s)
REPURCHASE AGREEMENTS 1.1%
State Street Bank
4.250% due 01/02/98 $ 496 496
(Dated 12/31/97. Collateralized by U.S.
Treasury Note 6.000% 05/31/98 valued
at $508,369. Repurchase proceeds
are $496,117.)
----------
Total Short-Term Instruments 496
(Cost $496) ==========
Total Investments (a) 99.9% $ 43,308
(Cost $33,477)
Other Assets and Liabilities (Net) 0.1% 31
----------
Net Assets 100.0% $ 43,339
==========
Notes to Schedule of Investments ($ in thousands):
(a) At December 31, 1997, 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 $ 10,382
Aggregate gross unrealized depreciation for all
investments in which there was an excess of
tax cost over value (551)
----------
Unrealized appreciation-net $ 9,831
==========
(b) Non-income producing security.
52 PIMCO Funds See accompanying notes
<PAGE>
Schedule of Investments
Balanced Fund
December 31, 1997 (Unaudited)
Value
Shares (000s)
- --------------------------------------------------------------------------------
COMMON STOCKS 56.8%
- --------------------------------------------------------------------------------
AEROSPACE 0.6%
Northrop Grumman Corp. 3,200 $ 368
CAPITAL GOODS 3.6%
Textron, Inc. 4,700 294
Illinois Tool Works, Inc. 4,400 265
Johnson Controls, Inc. 5,300 253
Dresser Industries, Inc. 6,000 252
Ingersoll Rand Co. 6,200 251
Unifi, Inc. 5,600 228
AlliedSignal, Inc. 5,500 214
United Technologies Corp. 2,700 197
Wheelabrator Technologies, Inc. 11,700 188
AGCO Corp. 6,300 184
Paccar, Inc. 1,000 53
------------
2,379
COMMUNICATIONS 2.2%
Bell Atlantic Corp. 6,129 558
Southern New England Telecommunications Corp. 8,000 403
SBC Communications, Inc. 3,800 278
AT&T Corp. 4,000 245
------------
1,484
CONSUMER DISCRETIONARY 10.7%
American Greetings Corp. `A' 15,100 591
Maytag Corp. 15,200 567
Brunswick Corp. 18,500 561
Tupperware Corp. 14,600 407
Omnicom Group 9,200 390
TJX Corp., Inc. 10,900 375
Chrysler Corp. 10,600 373
VF Corp. 8,000 368
Dillards, Inc. `A' 10,400 367
Tandy Corp. 9,400 362
Costco Cos. (b) 7,900 353
Washington Post Co. 700 341
Kroger Co. (b) 8,900 329
New York Times Co. 4,700 311
Gannett, Inc. 4,400 272
Dayton Hudson Corp. 3,700 250
Tribune Co. 3,700 230
Jones Apparel Group, Inc. (b) 5,100 219
Sunbeam-Oster, Inc. 5,100 215
Federated Department Stores, Inc. (b) 4,600 198
Goodyear Tire & Rubber Co. 1,400 89
------------
7,168
CONSUMER SERVICES 1.0%
Carnival Corp. `A' 6,100 338
Marriott International, Inc. 4,300 298
------------
636
CONSUMER STAPLES 4.5%
SUPERVALU, Inc. 14,000 586
Anheuser Busch Cos., Inc. 8,800 387
RJR Nabisco Holdings Corp. 10,300 386
Whitman Corp. 14,500 378
Safeway, Inc. (b) 5,500 348
Campbell Soup Co. 5,100 296
Hershey Foods Corp. 4,500 279
Unilever NV 2,900 181
IBP, Inc. 8,300 174
------------
3,015
ENERGY 6.0%
Atlantic Richfield Co. 6,500 521
Ultramar Diamond Shamrock Corp. 14,000 446
Repsol SA SP - ADR 8,800 374
Amoco Corp. 4,300 366
Transocean Offshore, Inc. 6,000 289
Tidewater, Inc. 5,200 287
Halliburton Co. 5,400 280
Noble Drilling Corp. (b) 9,000 276
Schlumberger Limited 3,300 266
ENSCO International, Inc. (b) 7,100 238
Global Marine, Inc. (b) 9,100 223
Rowan Cos., Inc. (b) 7,300 223
Nabors Industries, Inc. (b) 5,600 176
------------
3,965
FINANCIAL AND BUSINESS SERVICES 10.3%
Bear Stearns Cos. 13,555 644
PNC Bank Corp. 11,200 639
Chase Manhattan Corp. 5,200 569
CIGNA Corp. 2,500 433
Southtrust Corp. 5,300 336
Travelers Group, Inc. 6,050 326
Norwest Corp. 7,800 301
BankBoston Corp. 3,000 282
Federal National Mortgage Assn. 4,700 268
American Express Co. 3,000 268
Citicorp 2,000 253
Federal Home Loan Mortgage Corp. 6,000 252
National City Corp. 3,800 250
BankAmerica Corp. 3,400 248
Lincoln National Corp. 3,100 242
Associates First Capital Corp. `A' 3,300 235
Hartford Financial Services Group, Inc. 2,500 234
Countrywide Credit Industries, Inc. 5,400 232
First Union Corp. 4,500 231
CarrAmerica Realty Corp. 6,200 196
Simon DeBartolo Group, Inc. 5,900 193
Loews Corp. 1,700 180
Household International, Inc. 700 89
------------
6,901
HEALTH CARE 4.1%
American Home Products Corp. 5,100 390
Pharmacia & Upjohn, Inc. 10,500 385
Beckman Instruments, Inc. 9,000 360
Schering-Plough Corp. 5,300 329
Cognizant Corp. 6,700 299
Tenet Healthcare Corp. (b) 8,575 284
Biomet, Inc. 9,500 243
Eli Lilly & Co. 3,400 237
Foundation Health Systems `A' (b) 7,400 165
Health Management Assn., Inc. `A' (b) 900 23
------------
2,715
MATERIALS AND PROCESSING 4.5%
Westvaco Corp. 17,600 553
Phelps Dodge Corp. 7,000 436
USG Corp. (b) 7,400 363
Union Carbide Corp. 8,200 352
Wellman, Inc. 17,700 345
Rohm & Haas Co. 2,800 268
Tyco International Limited (b) 5,400 243
Sealed Air Corp. (b) 3,800 235
Fort James Corp. 5,387 206
------------
3,001
TECHNOLOGY 5.0%
International Business Machines Corp. 4,300 450
Teradyne, Inc. (b) 12,700 406
Adobe Systems, Inc. 9,700 400
Harris Corp. 8,200 376
Tektronix, Inc. 8,550 339
Computer Associates International, Inc. 5,550 293
BMC Software, Inc. (b) 4,100 269
Dell Computer Corp. (b) 2,500 210
Cisco Systems, Inc. (b) 3,750 209
Bay Networks, Inc. (b) 8,100 207
Seagate Technology, Inc. (b) 7,300 141
------------
3,300
TRANSPORTATION 1.2%
UAL Corp. (b) 4,300 398
Continental Airlines, Inc. `B' (b) 4,800 231
U.S. Airways Group, Inc. (b) 2,800 175
------------
804
UTILITIES 3.1%
PG & E Corp. 18,200 554
DTE Energy Co. 15,000 520
NICOR, Inc. 10,000 422
Ameritech Corp. 3,500 282
American Electric Power, Inc. 5,100 263
------------
2,041
------------
Total Common Stocks 37,777
(Cost $30,174) ============
1997 Semiannual Report See accompanying notes 53
<PAGE>
Schedule of Investments (Cont.)
Balanced Fund
December 31, 1997 (Unaudited)
Principal
Amount Value
(000s) (000s)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS 3.2%
- --------------------------------------------------------------------------------
U.S. TREASURY BONDS 3.2%
6.500% due 11/15/26 $ 2,000 $ 2,136
---------
Total U.S. Treasury Obligations 2,136
(Cost $1,973) =========
- --------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES 5.7%
- --------------------------------------------------------------------------------
INDUSTRIALS 2.3%
AMR Corp.
10.000% due 02/01/01 400 442
9.430% due 05/10/01 1,000 1,092
---------
1,534
UTILITIES 3.4%
Long Island Lighting Co.
9.000% due 11/01/22 2,000 2,229
---------
Total Corporate Bonds and Notes 3,763
(Cost $3,420) =========
- --------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES 33.5%
- --------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS 3.2%
Capstead Mortgage Corp.
8.900% due 12/25/21 205 208
Federal Home Loan Mortgage Corp.
10.150% due 04/15/06 36 36
Federal National Mortgage Assn
9.500% due 06/25/18 480 515
Independent National Mortgage Corp.
8.158% due 11/25/24 547 562
8.268% due 11/25/24(c) 718 736
PNC Mortgage Securities Corp.
7.500% due 06/25/10 94 94
---------
2,151
FEDERAL HOME LOAN MORTGAGE CORPORATION 12.8%
6.500% due 01/14/28-02/12/28 (d) 8,000 7,905
8.500% due 03/01/23 635 673
---------
8,578
FEDERAL HOUSING ADMINISTRATION 0.9%
7.000% due 07/01/14 (c) 578 598
FEDERAL NATIONAL MORTGAGE ASSOCIATION 7.8%
7.825% due 12/01/23 (c) 428 447
8.500% due 01/01/08-03/01/25 (d) 4,515 4,715
---------
5,162
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7.4%
6.500% due 01/15/24-01/22/27 (d) 1,402 1,388
7.000% due 08/20/24(c) 698 713
7.375% due 04/20/23(c) 1,536 1,585
7.500% due 05/15/17 13 14
8.000% due 01/22/28-09/15/06 (d) 572 593
9.500% due 09/15/09-10/15/09 (d) 148 161
10.750% due 09/15/00-10/15/00 (d) 105 110
16.000% due 10/15/11-04/15/12 (d) 287 332
---------
4,896
OTHER MORTGAGE-BACKED SECURITIES 1.4%
Home Savings of America
5.833% due 05/25/27 (c) 939 914
---------
Total Mortgage-Backed Securities 22,299
(Cost $22,100) =========
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 13.5%
- --------------------------------------------------------------------------------
COMMERCIAL PAPER 9.9%
BellSouth Telecommunications, Inc.
5.710% due 02/12/98 700 695
E.I. Du Pont de Nemours
5.830% due 01/28/98 200 199
5.740% due 02/13/98 100 99
Federal National Mortgage Assn.
5.760% due 01/26/98 300 299
Florida Power Corp.
5.730% due 02/04/98 100 99
Ford Motor Credit Corp.
5.540% due 01/08/98 1,000 999
General Electric Capital Corp.
5.840% due 01/23/98 700 698
IBM Credit Corp.
5.680% due 01/16/98 300 299
New Center Asset Trust
5.610% due 01/30/98 500 498
Pitney Bowes Credit Corp.
6.240% due 01/15/98 700 698
Procter & Gamble Co.
5.750% due 01/26/98 1,000 996
Wisconsin Electric Power & Light
5.770% due 01/28/98 1,000 996
---------
6,575
REPURCHASE AGREEMENTS 3.4%
State Street Bank
4.250% due 01/02/98 2,242 2,242
(Dated 12/31/97. Collateralized by U.S.
Treasury Note 6.000% 05/31/98 valued
at $2,295,215. Repurchase proceeds
are $2,242,530.)
U.S. TREASURY BILLS (E) 0.2%
5.067% due 02/05/98 145 145
---------
Total Short-Term Instruments 8,962
(Cost $8,962) =========
Total Investments (a) 112.7% $ 74,937
(Cost $66,629)
Other Assets and Liabilities (Net) (12.7%) (8,438)
---------
Net Assets 100.0% $ 66,499
=========
Notes to Schedule of Investments ($ in thousands):
(a) At December 31, 1997, 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. $ 8,934
Aggregate gross unrealized depreciation for all
investments in which there was an excess of
tax cost over value. (626)
---------
Unrealized appreciation-net $ 8,308
=========
(b) Non-income producing security.
(c) Variable rate security. The rate listed is as of December 31, 1997.
(d) Securities are grouped by coupon and represent a range of maturities.
(e) Securities with an aggregate market value of $145 have been segregated with
the custodian to cover margin requirements for the following open futures
contracts at December 31, 1997:
Unrealized
Type Contracts Appreciation
- --------------------------------------------------------------------------------
U.S. Treasury 10 Year Note (03/98) 29 $ 25
U.S. Treasury 30 Year Bond (03/98) 30 44
---------
$ 69
=========
54 PIMCO Funds See accompanying notes
<PAGE>
Notes to Financial Statements
December 31, 1997 (Unaudited)
1. Organization
PIMCO Funds: Multi-Manager Series (the "Trust"), formerly known as PIMCO Funds:
Equity Advisors Series, was established as a Massachusetts business trust on
August 24, 1990. The Trust is registered under the Investment Company Act of
1940, as amended, as an open-end management investment company. The Trust
currently consists of twenty two separate investment funds (the "Funds"): the
Equity Income Fund; the Renaissance Fund; the Small Cap Value Fund; the Value
Fund; the Capital Appreciation Fund; the Mid Cap Growth Fund; the Micro Cap
Growth Fund; the Small Cap Growth Fund; the Core Equity Fund; the Mid Cap Equity
Fund; the Innovation Fund; the Enhanced Equity Fund; the Emerging Markets Fund;
the International Fund; the International Developed Fund; the Target Fund; the
Tax Exempt Fund; the Growth Fund; the Opportunity Fund; the Precious Metals
Fund; the Structured Emerging Markets Fund; and the Balanced Fund. The
Structured Emerging Markets Fund had not commenced operations as of December 31,
1997. As used in the financial statements, "Institutional Classes" refers to the
Institutional and Administrative Classes and "Retail Classes" refers to the A,
B, and C Classes of the Trust.
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. Foreign currency amounts are
converted to U.S. dollars using foreign exchange quotations received from
independent dealers. 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.
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 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. Foreign exchange gains or
losses on investments and the income generated from such investments, arising
from fluctuations of exchange rates of the non-dollar denominated investments
relative to the U.S. dollar, are reported to shareholders as income in
accordance with the provisions of the Internal Revenue Code.
1997 Semiannual Report 55
<PAGE>
Notes to Financial Statements (Cont.)
December 31, 1997 (Unaudited)
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 and voting privileges. 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 - $15,422;
International Developed Fund - $34,634; Mid Cap Growth Fund - $2,380;
Renaissance Fund - $22,966; Equity Income Fund - $6,396; Value Fund - $15,793;
Small Cap Value Fund - $1,166; Enhanced Equity Fund - $1,468; and Balanced Fund
- - $1,657.
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 stock and bond markets or change in interest rates and currency values,
or for gaining exposure to markets. 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. The following foreign forward currency contracts were outstanding at
December 31, 1997 (amounts in thousands):
<TABLE>
<CAPTION>
Principal
Amount Unrealized
Covered by Expiration Appreciation
Fund Type Contract Month (Depreciation)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Emerging Markets Fund Buy Hungarian Forint 13,419 1/98 $ 0
Sell Mexican Peso 2,760 1/98 (1)
-------------
$ (1)
International Developed Fund Buy British Pound 3,700 1/98 $ 47
</TABLE>
56 PIMCO Funds
<PAGE>
For assets and liabilities other than investments in securities, net
realized and unrealized gains and losses from foreign currency transactions
arise from changes in currency exchange rates.
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 Emerging Markets Fund;
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.
Other than the sub-advisor of the Precious Metals Fund, 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 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 Classes is charged at the annual rate of 0.50% for the Emerging
Markets and International Developed Funds and 0.25% for all other Funds. The
Administration Fee for the Retail Classes is charged at the annual rate of 0.65%
for the Emerging Markets and International Developed Funds and 0.40% for all
other Funds.
Distribution and Servicing Fees. PIMCO Funds Distributors LLC ("PFD"), formerly
PIMCO Funds Distribution Company, a wholly-owned subsidiary of PIMCO Advisors
L.P., serves as the distributor of the Trust's shares.
The Trust is permitted to reimburse out of the Administrative Class
assets of each Fund offering Administrative Class shares, 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 Retail
Classes of the Trust, the Trust compensates PFD 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 Retail Classes. The Trust paid PFD distribution and servicing
fees at an effective rate as set forth below (calculated as a percentage of
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
1997 Semiannual Report 57
<PAGE>
Notes to Financial Statements (Cont.)
December 31, 1997 (Unaudited)
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,
Class B and Class C shares. For the period ended December 31, 1997, the Funds
were informed that PFD received $1,329,417 representing commissions (sales
charges) and contingent deferred sales charges related to the Retail Classes.
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 service fees payable with respect to the Administrative Class shares 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 per share class, as disclosed in Financial Highlights, may differ
from the annual fund operating expenses per share class 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, plus reimbursement of
related expenses. The chairman of the unaffiliated Trustees and each committee
chair receives annual retainers of $6,000 and $2,000, respectively. Each
unaffiliated committee member receives an annual retainer of $1,000 and a fee of
$500 per meeting. 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 December 31, 1997 were as follows (amounts in thousands):
U.S. Government/Agency All Other
---------------------------------------------------
Purchases Sales Purchases Sales
- --------------------------------------------------------------------------------
Emerging Markets Fund $ 15,223 $ 20,656
International Developed Fund 32,086 40,087
Capital Appreciation Fund 149,707 193,739
Mid Cap Growth Fund 235,716 129,801
Micro Cap Growth Fund 76,806 70,379
Small Cap Growth Fund 14,214 14,212
Renaissance 454,294 435,021
Core Equity Fund 100,057 44,746
Mid Cap Equity Fund 11,114 12,499
Equity Income Fund 40,152 26,161
Value Fund 79,850 63,469
Small Cap Value Fund 149,461 24,617
Enhanced Equity Fund 10,707 17,431
Balanced Fund $ 13,868 $ 19,601 45,316 43,579
58 PIMCO Funds
<PAGE>
5. Federal Income Tax Matters
As of June 30, 1997, the Fund listed in the table below had remaining capital
loss carryforwards that were realized in prior years (amounts in thousands):
Capital Loss Carryforwards
---------------------------------
Realized Losses Acquired Losses Expiration
- --------------------------------------------------------------------------------
Emerging Markets Fund $ 10,105 $ -- 06/30/03
The Fund will resume capital gain distributions in the future to the extent
gains are realized in excess of the available carryforward.
6. Reorganization
On September 17, 1996, the Board of Trustees approved the reorganization of
certain of the funds of PIMCO Advisors Funds ("PAF"), an affiliated management
investment company, into the Trust. The reorganization occurred on January 17,
1997. In conjunction with the reorganization, the name of the Trust was changed
to "PIMCO Funds: Multi-Manager Series" from "PIMCO Funds: Equity Advisors
Series." Certain PAF funds were acquired intact and became new Funds of the
Trust. Two Funds of the Trust, the NFJ Diversified Low P/E and the Cadence Mid
Cap Growth Funds, were combined with funds acquired from PAF.
Also, as part of the reorganization, the NFJ Diversified Low P/E Fund
and the Blairlogie International Active Fund were renamed Value Fund and
International Developed Fund, respectively, to more accurately describe the
investment style.
Each Acquiring Fund, as listed below, acquired the assets and certain
liabilities of the Acquired Fund, also listed below, in a tax-free exchange for
shares of the Acquiring Fund, pursuant to a plan of reorganization approved by
the Acquired Fund's shareholders (amounts in thousands):
<TABLE>
<CAPTION>
Total
Shares Value of Total Net Total Net Net Assets Acquired
Issued by Shares Issued Assets of Assets of of Acquiring Fund
Acquiring by Acquiring Acquired Acquiring Fund After Unrealized
Acquiring Fund Acquired Fund(s) Date Fund Fund Fund Fund Acquisition Appreciation
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PIMCO
NFJ Diversified
Low P/E Fund
(renamed PIMCO Advisors
Value Fund) Value Fund 01/17/97 5,988 $ 80,835 $ 80,835 $ 67,334 $ 148,169 $ 9,962
PIMCO
Cadence Mid Cap
Growth Fund
(renamed Mid Cap PIMCO Advisors
Growth Fund) Discovery Fund 01/17/97 4,103 75,421 75,421 237,494 312,915 11,691
</TABLE>
1997 Semiannual Report 59
<PAGE>
Notes to Financial Statements (Cont.)
December 31, 1997 (Unaudited)
7. 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
(amounts in thousands):
<TABLE>
<CAPTION>
Emerging Markets Fund International Developed Fund
------------------------------------------- ------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
12/31/97 6/30/97 12/31/97 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 1,174 $ 14,262 1,007 $ 12,784 1,356 $ 16,968 3,568 $ 43,648
- ----------------------------------------- ------------------------------------------- ------------------------------------------
Administrative Class 58 740 26 305 127 1,589 140 1,683
- ----------------------------------------- ------------------------------------------- ------------------------------------------
Class A 111 1,332 16 214 29 367 39 477
- ----------------------------------------- ------------------------------------------- ------------------------------------------
Class B 40 503 28 362 99 1,267 87 1,057
- ----------------------------------------- ------------------------------------------- ------------------------------------------
Class C 55 684 153 2,021 180 2,244 228 2,759
- ----------------------------------------- ------------------------------------------- ------------------------------------------
Shares issued in reorganization
Class A 0 0 0 0 0 0 0 0
- ----------------------------------------- ------------------------------------------- ------------------------------------------
Class B 0 0 0 0 0 0 0 0
- ----------------------------------------- ------------------------------------------- ------------------------------------------
Class C 0 0 0 0 0 0 0 0
- ----------------------------------------- ------------------------------------------- ------------------------------------------
Issued as reinvestment of distributions
Institutional Class 0 0 19 222 367 4,242 296 3,449
- ----------------------------------------- ------------------------------------------- ------------------------------------------
Administrative Class 0 0 0 0 8 98 22 255
- ----------------------------------------- ------------------------------------------- ------------------------------------------
Class A 0 0 0 0 2 25 0 0
- ----------------------------------------- ------------------------------------------- ------------------------------------------
Class B 0 0 0 0 7 77 0 0
- ----------------------------------------- ------------------------------------------- ------------------------------------------
Class C 0 0 0 0 16 183 0 0
- ----------------------------------------- ------------------------------------------- ------------------------------------------
Cost of shares redeemed
Institutional Class (1,755) (20,941) (3,613) (45,330) (1,334) (17,202) (2,294) (27,613)
- ----------------------------------------- ------------------------------------------- ------------------------------------------
Administrative Class (2) (30) (46) (553) (138) (1,736) (435) (5,453)
- ----------------------------------------- ------------------------------------------- ------------------------------------------
Class A (107) (1,271) (1) (10) (13) (159) (15) (189)
- ----------------------------------------- ------------------------------------------- ------------------------------------------
Class B (18) (212) (5) (73) (8) (93) (1) (15)
- ----------------------------------------- ------------------------------------------- ------------------------------------------
Class C (61) (752) (21) (277) (73) (912) (35) (433)
- ----------------------------------------- ------------------------------------------- ------------------------------------------
Net increase (decrease) resulting from
Fund share transactions (505) $ (5,685) (2,437) $ (30,335) 625 $ 6,958 1,600 $ 19,625
========================================= =========================================== ==========================================
<CAPTION>
Capital Appreciation Fund
-------------------------------------------
Six Months Ended Year Ended
12/31/97 6/30/97
Shares Amount Shares Amount
-------------------------------------------
<S> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 4,967 $ 116,242 8,723 $ 165,774
- ---------------------------------------------- -------------------------------------------
Administrative Class 1,206 28,356 157 3,111
- ---------------------------------------------- -------------------------------------------
Class A 404 9,353 330 6,440
- ---------------------------------------------- -------------------------------------------
Class B 409 9,549 144 2,819
- ---------------------------------------------- -------------------------------------------
Class C 1,149 26,913 676 13,152
- ---------------------------------------------- -------------------------------------------
Shares issued in reorganization
Class A 0 0 0 0
- ---------------------------------------------- -------------------------------------------
Class B 0 0 0 0
- ---------------------------------------------- -------------------------------------------
Class C 0 0 0 0
- ---------------------------------------------- -------------------------------------------
Issued as reinvestment of distributions
Institutional Class 1,599 37,066 2,018 36,552
- ---------------------------------------------- -------------------------------------------
Administrative Class 86 1,973 8 136
- ---------------------------------------------- -------------------------------------------
Class A 38 887 0 0
- ---------------------------------------------- -------------------------------------------
Class B 32 737 0 0
- ---------------------------------------------- -------------------------------------------
Class C 106 2,441 0 0
- ---------------------------------------------- -------------------------------------------
Cost of shares redeemed
Institutional Class (3,114) (72,523) (4,708) (90,177)
- ---------------------------------------------- -------------------------------------------
Administrative Class (88) (2,072) (17) (349)
- ---------------------------------------------- -------------------------------------------
Class A (102) (2,458) (21) (415)
- ---------------------------------------------- -------------------------------------------
Class B (17) (401) (1) (11)
- ---------------------------------------------- -------------------------------------------
Class C (187) (4,320) (55) (1,161)
- ---------------------------------------------- -------------------------------------------
Net increase (decrease) resulting from
Fund share transactions 6,488 $ 151,743 7,254 $ 135,871
============================================== ===========================================
</TABLE>
<TABLE>
<CAPTION>
Core Equity Fund Mid Cap Equity Fund
------------------------------------------- ------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
12/31/97 6/30/97 12/31/97 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 36 $ 583 116 $ 1,642 47 $ 553 42 $ 575
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Administrative Class 3,970 67,652 671 9,341 37 583 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class A 0 0 0 0 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class B 0 0 0 0 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class C 0 0 0 0 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Shares issued in reorganization
Class A 0 0 0 0 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class B 0 0 0 0 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class C 0 0 0 0 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Issued as reinvestment of distributions
Institutional Class 19 308 21 286 53 618 20 262
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Administrative Class 455 7,237 137 1,878 12 138 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class A 0 0 0 0 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class B 0 0 0 0 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class C 0 0 0 0 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Cost of shares redeemed
Institutional Class (203) (3,461) (493) (6,861) (33) (532) (92) (1,218)
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Administrative Class (308) (5,086) (1,397) (19,716) 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class A 0 0 0 0 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class B 0 0 0 0 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class C 0 0 0 0 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Net increase (decrease) resulting from
Fund share transactions 3,969 $ 67,233 (945) $(13,430) 116 $ 1,360 (30) $ (381)
======================================== =========================================== ==========================================
<CAPTION>
Equity Income Fund
-------------------------------------------
Six Months Ended Year Ended
12/31/97 6/30/97
Shares Amount Shares Amount
-------------------------------------------
<S> <C> <C> <C> <C>
Receipts for shares sold
Institutional Class 454 $ 7,398 1,004 $ 14,387
- -------------------------------------------- --------------------------------------------
Administrative Class 85 1,413 142 2,032
- -------------------------------------------- --------------------------------------------
Class A 543 8,812 118 1,691
- -------------------------------------------- --------------------------------------------
Class B 250 4,042 213 3,040
- -------------------------------------------- --------------------------------------------
Class C 375 5,996 488 7,063
- -------------------------------------------- --------------------------------------------
Shares issued in reorganization
Class A 0 0 0 0
- -------------------------------------------- --------------------------------------------
Class B 0 0 0 0
- -------------------------------------------- --------------------------------------------
Class C 0 0 0 0
- -------------------------------------------- --------------------------------------------
Issued as reinvestment of distributions
Institutional Class 1,185 18,142 1,299 17,796
- -------------------------------------------- --------------------------------------------
Administrative Class 87 1,328 80 1,101
- -------------------------------------------- --------------------------------------------
Class A 75 1,142 1 13
- -------------------------------------------- --------------------------------------------
Class B 49 750 1 15
- -------------------------------------------- --------------------------------------------
Class C 92 1,390 3 43
- -------------------------------------------- --------------------------------------------
Cost of shares redeemed
Institutional Class (739) (11,987) (2,573) (37,514)
- -------------------------------------------- --------------------------------------------
Administrative Class (52) (850) (118) (1,690)
- -------------------------------------------- --------------------------------------------
Class A (107) (1,738) (5) (69)
- -------------------------------------------- --------------------------------------------
Class B (9) (149) (47) (670)
- -------------------------------------------- --------------------------------------------
Class C (78) (1,253) (60) (899)
- -------------------------------------------- --------------------------------------------
Net increase (decrease) resulting from
Fund share transactions 2,210 $ 34,436 546 $ 6,339
============================================ ============================================
</TABLE>
60 PIMCO Funds
<PAGE>
<TABLE>
<CAPTION>
Mid Cap Growth Fund Micro Cap Growth Fund
------------------------------------------- ------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
12/31/97 6/30/97 12/31/97 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 4,058 $ 92,630 3,798 $ 71,437 1,660 $ 35,901 4,050 $ 72,696
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Administrative Class 430 9,956 47 878 106 2,383 135 2,434
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class A 1,163 26,604 133 673 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class B 919 20,863 277 1,840 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class C 1,729 38,752 792 8,401 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Shares issued in reorganization
Class A 0 0 618 11,363 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class B 0 0 1,223 22,472 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class C 0 0 2,262 41,587 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Issued as reinvestment of distributions
Institutional Class 975 22,223 2,481 42,923 910 19,223 572 9,931
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Administrative Class 24 544 15 261 19 396 7 121
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class A 51 1,158 0 0 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class B 103 2,327 0 0 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class C 185 4,187 0 0 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Cost of shares redeemed
Institutional Class (1,938) (44,127) (3,791) (72,699) (974) (21,855) (899) (15,697)
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Administrative Class (85) (1,965) (15) (280) (52) (1,162) (66) (1,174)
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class A (745) (17,174) (149) (2,743) 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class B (186) (4,255) (99) (1,818) 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class C (399) (8,928) (392) (7,250) 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Net increase (decrease) resulting from
Fund share transactions 6,284 $ 142,795 7,200 $ 117,045 1,669 $ 34,886 3,799 $ 68,311
======================================== =========================================== ==========================================
<CAPTION>
Small Cap Growth Fund Renaissance Fund
------------------------------------------- ------------------------------------------
Six Months Ended Year Ended Six Months Ended Nine Months Ended
12/31/97 6/30/97 12/31/97 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 133 $ 1,961 688 $ 10,629 35 $ 581 0 $ 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Administrative Class 5 79 0 1 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class A 0 0 0 0 1,926 36,065 1,108 17,402
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class B 0 0 0 0 760 14,224 1,321 21,111
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class C 0 0 0 0 4,523 84,692 7,139 112,880
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Shares issued in reorganization
Class A 0 0 0 0 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class B 0 0 0 0 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class C 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
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class A 0 0 0 0 418 7,011 12 200
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class B 0 0 0 0 478 8,021 5 73
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class C 0 0 0 0 3,550 59,199 39 613
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Cost of shares redeemed
Institutional Class (53) (767) (835) (11,800) 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Administrative Class 0 0 (6) (120) 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class A 0 0 0 0 (1,532) (28,958) (509) (7,973)
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class B 0 0 0 0 (171) (3,242) (203) (3,265)
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class C 0 0 0 0 (3,794) (71,484) (3,802) (61,037)
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Net increase (decrease) resulting from
Fund share transactions 446 $ 6,061 904 $ 11,026 6,193 $ 106,109 5,110 $ 80,004
======================================= ============================================ ==========================================
</TABLE>
<TABLE>
<CAPTION>
Value Fund Small Cap Value Fund
------------------------------------------- ------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
12/31/97 6/30/97 12/31/97 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 210 $ 3,173 1,317 $ 17,251 1,070 $ 18,821 395 $ 5,653
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Administrative Class 263 4,244 0 0 141 2,542 90 1,269
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class A 594 9,229 349 3,387 1,546 27,136 422 6,136
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class B 267 4,160 303 1,609 2,747 48,136 743 10,821
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class C 1,090 16,969 1,607 16,250 3,851 67,153 1,351 19,512
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Shares issued in reorganization
Class A 0 0 843 11,374 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class B 0 0 1,521 20,538 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class C 0 0 3,624 48,923 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Issued as reinvestment of distributions
Institutional Class 570 8,347 293 3,854 101 1,770 368 4,969
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Administrative Class 30 431 0 0 24 427 55 741
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class A 123 1,792 7 95 71 1,246 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class B 193 2,817 6 86 137 2,393 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class C 511 7,437 16 225 185 3,224 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Cost of shares redeemed
Institutional Class (462) (7,392) (803) (10,770) (711) (12,824) (612) (8,698)
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Administrative Class 0 (6) 0 0 (25) (433) (82) (1,177)
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class A (506) (7,839) (142) (1,972) (206) (3,625) (5) (78)
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class B (89) (1,364) (112) (1,562) (126) (2,215) (38) (588)
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class C (632) (9,803) (913) (12,509) (383) (6,740) (37) (535)
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Net increase (decrease) resulting from
Fund share transactions 2,162 $ 32,195 7,916 $ 96,779 8,422 $ 147,011 2,650 $ 38,025
======================================= ============================================ ==========================================
<CAPTION>
Enhanced Equity Fund Balanced Fund
------------------------------------------- ------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
12/31/97 6/30/97 12/31/97 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 161 $ 2,259 761 $ 11,801 206 $ 2,466 926 $ 10,421
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Administrative Class 167 2,877 0 0 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class A 0 0 0 0 470 5,747 32 354
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class B 0 0 0 0 236 2,761 102 1,113
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class C 0 0 0 0 295 3,485 89 969
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Shares issued in reorganization
Class A 0 0 0 0 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class B 0 0 0 0 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class C 0 0 0 0 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Issued as reinvestment of distributions
Institutional Class 1,579 17,291 1,245 17,302 527 6,034 1,158 12,237
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Administrative Class 109 1,191 0 0 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class A 0 0 0 0 47 534 0 3
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class B 0 0 0 0 22 252 1 9
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class C 0 0 0 0 28 315 1 7
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Cost of shares redeemed
Institutional Class (664) (11,486) (4,525) (67,468) (1,485) (17,681) (3,794) (43,185)
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Administrative Class 0 0 0 0 0 0 0 0
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class A 0 0 0 0 (11) (127) 0 (4)
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class B 0 0 0 0 (7) (82) (4) (44)
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Class C 0 0 0 0 (35) (399) (8) (90)
- ---------------------------------------- ------------------------------------------- ------------------------------------------
Net increase (decrease) resulting from
Fund share transactions 1,352 $ 12,132 (2,519) $ (38,365) 293 $ 3,305 (1,497) $ (18,210)
======================================= ============================================ ==========================================
</TABLE>
1997 Semiannual Report 61
<PAGE>
Notes to Financial Statements (Cont.)
December 31, 1997 (Unaudited)
8. Transactions in Written Call and Put Options
Transactions in written call and put options were as follows ($ in thousands):
Core Equity Fund
----------------------------------------------------
Premium Contracts
-------- ---------------- --------
Balance at 06/30/97 $ 0 0
Sales 139 506
Closing Buys (71) (266)
Expirations (30) (91)
Exercised (13) (37)
----------------------------------------------------
Balance at 12/31/97 $ 25 112
====================================================
9. Retail Class Summaries
The following amounts relate to items accumulated in the Statement of Assets and
Liabilities and the Statement of Changes in Net Assets (amounts in thousands):
<TABLE>
<CAPTION>
Emerging International Capital
Markets Developed Appreciation Mid Cap Renaissance
For the period ended 12/31/97 Fund Fund Fund Growth Fund Fund
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Shares Issued and Outstanding
Class A 20 43 649 1,071 2,707
- ----------------------------------------------------------------------------------------------------------------------
Class B 44 184 567 2,237 3,164
- ----------------------------------------------------------------------------------------------------------------------
Class C 126 316 1,688 4,177 21,989
- ----------------------------------------------------------------------------------------------------------------------
190 543 2,904 7,485 27,860
===============================================================================
Distribution and Servicing Fees
Class A $ 0 $ 1 $ 13 $ 22 $ 50
- ----------------------------------------------------------------------------------------------------------------------
Class B 3 9 35 195 232
- ----------------------------------------------------------------------------------------------------------------------
Class C 8 16 120 359 1,772
- ----------------------------------------------------------------------------------------------------------------------
$ 11 $ 26 $ 168 $ 576 $ 2,054
===============================================================================
Distributions to Shareholders
From net investment income
Class A $ 0 $ 4 $ 56 $ 41 $ 170
- ----------------------------------------------------------------------------------------------------------------------
Class B 0 11 40 0 42
- ----------------------------------------------------------------------------------------------------------------------
Class C 0 18 81 0 213
- ----------------------------------------------------------------------------------------------------------------------
$ 0 $ 33 $ 177 $ 41 $ 425
===============================================================================
From net realized capital gains
Class A $ 0 $ 23 $ 881 $ 1,205 $ 7,515
- ----------------------------------------------------------------------------------------------------------------------
Class B 0 100 754 2,602 8,922
- ----------------------------------------------------------------------------------------------------------------------
Class C 0 169 2,428 4,570 64,285
- ----------------------------------------------------------------------------------------------------------------------
$ 0 $ 292 $ 4,063 $ 8,377 $ 80,722
===============================================================================
<CAPTION>
Equity
Income Value Small Cap Balanced
For the period ended 12/31/97 Fund Fund Value Fund Fund
-------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares Issued and Outstanding
Class A 625 1,268 1,827 538
- ----------------------------------------------------------------------------------------------------
Class B 458 2,091 3,463 350
- ----------------------------------------------------------------------------------------------------
Class C 820 5,302 4,967 369
- ----------------------------------------------------------------------------------------------------
1,903 8,661 10,257 1,257
=============================================================
Distribution and Servicing Fees
Class A $ 6 $ 22 $ 23 $ 4
- ----------------------------------------------------------------------------------------------------
Class B 23 144 173 11
- ----------------------------------------------------------------------------------------------------
Class C 48 363 255 11
- ----------------------------------------------------------------------------------------------------
$ 77 $ 529 $ 451 $ 26
=============================================================
Distributions to Shareholders
From net investment income
Class A $ 104 $ 120 $ 226 $ 57
- ----------------------------------------------------------------------------------------------------
Class B 67 104 310 42
- ----------------------------------------------------------------------------------------------------
Class C 121 260 410 43
- ----------------------------------------------------------------------------------------------------
$ 292 $ 484 $ 946 $ 142
=============================================================
From net realized capital gains
Class A $ 1,062 $ 1,819 $ 1,098 $ 495
- ----------------------------------------------------------------------------------------------------
Class B 745 3,061 2,248 247
- ----------------------------------------------------------------------------------------------------
Class C 1,348 7,703 2,980 285
- ----------------------------------------------------------------------------------------------------
$ 3,155 $ 12,583 $ 6,326 $ 1,027
=============================================================
</TABLE>
62 PIMCO Funds
<PAGE>
<TABLE>
Emerging International Capital Equity
Markets Developed Appreciation Mid Cap Income
For the period ended 06/30/97 Fund Fund Fund Growth Fund Fund
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Shares Issued and Outstanding
Class A 15 24 309 602 114
- ---------------------------------------------------------------------------------------------------------------
Class B 22 86 143 1,401 167
- ---------------------------------------------------------------------------------------------------------------
Class C 132 193 621 2,661 431
- ---------------------------------------------------------------------------------------------------------------
169 303 1,073 4,664 712
============================================================================
Distribution and Servicing Fees
Class A $ 0 $ 0 $ 6 $ 12 $ 1
- ---------------------------------------------------------------------------------------------------------------
Class B 1 2 5 104 5
- ---------------------------------------------------------------------------------------------------------------
Class C 5 6 28 197 13
- ---------------------------------------------------------------------------------------------------------------
$ 6 $ 8 $ 39 $ 313 $ 19
============================================================================
Distributions to Shareholders
From net investment income
Class A $ 0 $ 0 $ 0 $ 0 $ 15
- ---------------------------------------------------------------------------------------------------------------
Class B 0 0 0 0 17
- ---------------------------------------------------------------------------------------------------------------
Class C 0 0 0 0 47
- ---------------------------------------------------------------------------------------------------------------
$ 0 $ 0 $ 0 $ 0 $ 79
============================================================================
</TABLE>
Value Small Cap Balanced
For the period ended 06/30/97 Fund Value Fund Fund
--------------------------------------------
Shares Issued and Outstanding
Class A 1,057 417 32
- --------------------------------------------------------------------------------
Class B 1,719 705 99
- --------------------------------------------------------------------------------
Class C 4,333 1,314 81
- --------------------------------------------------------------------------------
7,109 2,436 212
=============================================
Distribution and Servicing Fees
Class A $ 15 $ 3 $ 0
- --------------------------------------------------------------------------------
Class B 101 17 2
- --------------------------------------------------------------------------------
Class C 245 40 2
- --------------------------------------------------------------------------------
$ 361 $ 60 $ 4
=============================================
Distributions to Shareholders
From net investment income
Class A $ 105 $ 0 $ 4
- --------------------------------------------------------------------------------
Class B 99 0 10
- --------------------------------------------------------------------------------
Class C 247 0 8
- --------------------------------------------------------------------------------
$ 451 $ 0 $ 22
=============================================
1997 Semiannual Report 63
<PAGE>
Notes to Financial Statements (Cont.)
December 31, 1997
<TABLE>
<CAPTION>
10. Retail Class-Financial Net Asset Net Realized/ Total Dividends Dividends in Distributions
Highlights Value Net Unrealized Income from from Net Excess of Net from Net
Selected Per Share Data for Beginning Investment Gain (Loss) on Investment Investment Investment Realized
the Year or Period Ended: of Period Income (Loss) Investments Operations Income Income Capital Gains
--------- ------------- ------------- ----------- ---------- -------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
Emerging Markets Fund
Class A
12/31/97 (b) $ 13.94 $ (0.02)(a) $ (2.25)(a) $ (2.27) $ 0.00 $ 0.00 $ 0.00
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
01/20/97-06/30/97 12.82 0.09(a) 1.03(a) 1.12 0.00 0.00 0.00
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
Class B
12/31/97 (b) 13.89 (0.07)(a) (2.23)(a) (2.30) 0.00 0.00 0.00
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
01/20/97-06/30/97 12.82 0.03(a) 1.04(a) 1.07 0.00 0.00 0.00
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
Class C
12/31/97 (b) 13.89 (0.07)(a) (2.23)(a) (2.30) 0.00 0.00 0.00
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
01/20/97-06/30/97 12.82 0.04(a) 1.03(a) 1.07 0.00 0.00 0.00
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
International Developed Fund
Class A
12/31/97 (b) $ 13.08 $ 0.01(a) $ (0.95)(a) $ (0.94) $ (0.10) $ 0.00 $ (0.58)
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
01/20/97-06/30/97 11.71 0.09(a) 1.28(a) 1.37 0.00 0.00 0.00
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
Class B
12/31/97 (b) 13.06 (0.04)(a) (0.95)(a) (0.99) (0.06) 0.00 (0.58)
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
01/20/97-06/30/97 11.71 0.06(a) 1.29(a) 1.35 0.00 0.00 0.00
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
Class C
12/31/97 (b) 13.06 (0.04)(a) (0.95)(a) (0.99) (0.06) 0.00 (0.58)
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
01/20/97-06/30/97 11.71 0.06(a) 1.29(a) 1.35 0.00 0.00 0.00
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
Capital Appreciation Fund
Class A
12/31/97 (b) $ 21.16 $ 0.02(a) $ 3.36(a) $ 3.38 $ (0.09) $ 0.00 $ (1.68)
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
01/20/97-06/30/97 19.31 0.09 1.76 1.85 0.00 0.00 0.00
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
Class B
12/31/97 (b) 21.10 (0.06)(a) 3.34(a) 3.28 (0.07) 0.00 (1.68)
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
01/20/97-06/30/97 19.31 0.01 1.78 1.79 0.00 0.00 0.00
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
Class C
12/31/97 (b) 21.10 (0.06)(a) 3.34(a) 3.28 (0.05) 0.00 (1.68)
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
01/20/97-06/30/97 19.31 0.02 1.77 1.79 0.00 0.00 0.00
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
Mid Cap Growth Fund
Class A
12/31/97 (b) $ 20.24 $ 0.01(a) $ 3.57(a) $ 3.58 $ (0.04) $ 0.00 $ (1.33)
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
01/13/97-06/30/97 18.14 (0.04) 2.14 2.10 0.00 0.00 0.00
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
Class B
12/31/97 (b) 20.17 (0.08)(a) 3.57(a) 3.49 0.00 0.00 (1.33)
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
01/13/97-06/30/97 18.14 (0.11) 2.14 2.03 0.00 0.00 0.00
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
Class C
12/31/97 (b) 20.18 (0.08)(a) 3.56(a) 3.48 0.00 0.00 (1.33)
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
01/13/97-06/30/97 18.14 (0.10) 2.14 2.04 0.00 0.00 0.00
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
Equity Income Fund
Class A
12/31/97 (b) $ 15.39 $ 0.22(a) $ 1.90(a) $ 2.12 $ (0.23) $ 0.00 $ (2.09)
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
01/20/97-06/30/97 13.94 0.15 1.48 1.63 (0.18) 0.00 0.00
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
Class B
12/31/97 (b) 15.37 0.14(a) 1.91(a) 2.05 (0.18) 0.00 (2.09)
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
01/20/97-06/30/97 13.94 0.11 1.48 1.59 (0.16) 0.00 0.00
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
Class C
12/31/97 (b) 15.37 0.14(a) 1.91(a) 2.05 (0.17) 0.00 (2.09)
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
01/20/97-06/30/97 13.94 0.11 1.48 1.59 (0.16) 0.00 0.00
- ---------------------------- ----------- -------------- -------------- ------------ ---------- ------------- -------------
</TABLE>
* Annualized
(a) Per share amounts based on average number of shares outstanding during
the period.
(b) Unaudited
64 PIMCO Funds
<PAGE>
<TABLE>
<CAPTION>
10. Retail Class-Financial Distributions
Highlights in Excess of Distributions Tax Basis Net Asset
Selected Per Share Data for Net Realized from Return of Total Value End
the Year or Period Ended: Capital Gains Equalization Capital Distributions of Period Total Return
------------- ------------- --------- ------------- --------- -------------
<S> <C> <C> <C> <C> <C> <C>
Emerging Markets Fund
Class A
12/31/97 (b) $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 11.67 (16.28)%
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
01/20/97-06/30/97 0.00 0.00 0.00 0.00 13.94 8.74
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
Class B
12/31/97 (b) 0.00 0.00 0.00 0.00 11.59 (16.56)
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
01/20/97-06/30/97 0.00 0.00 0.00 0.00 13.89 8.35
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
Class C
12/31/97 (b) 0.00 0.00 0.00 0.00 11.59 (16.56)
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
01/20/97-06/30/97 0.00 0.00 0.00 0.00 13.89 8.35
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
International Developed Fund
Class A
12/31/97 (b) $ 0.00 $ 0.00 $ 0.00 $ (0.68) $ 11.46 (7.19)%
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
01/20/97-06/30/97 0.00 0.00 0.00 0.00 13.08 11.70
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
Class B
12/31/97 (b) 0.00 0.00 0.00 (0.64) 11.43 (7.59)
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
01/20/97-06/30/97 0.00 0.00 0.00 0.00 13.06 11.53
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
Class C
12/31/97 (b) 0.00 0.00 0.00 (0.64) 11.43 (7.61)
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
01/20/97-06/30/97 0.00 0.00 0.00 0.00 13.06 11.53
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
Capital Appreciation Fund
Class A
12/31/97 (b) $ 0.00 $ 0.00 $ 0.00 $ (1.77) $ 22.77 15.90%
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
01/20/97-06/30/97 0.00 0.00 0.00 0.00 21.16 9.58
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
Class B
12/31/97 (b) 0.00 0.00 0.00 (1.75) 22.63 15.47
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
01/20/97-06/30/97 0.00 0.00 0.00 0.00 21.10 9.27
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
Class C
12/31/97 (b) 0.00 0.00 0.00 (1.73) 22.65 15.45
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
01/20/97-06/30/97 0.00 0.00 0.00 0.00 21.10 9.27
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
Mid Cap Growth Fund
Class A
12/31/97 (b) $ 0.00 $ 0.00 $ 0.00 $ (1.37) $ 22.45 17.60%
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
01/13/97-06/30/97 0.00 0.00 0.00 0.00 20.24 11.58
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
Class B
12/31/97 (b) 0.00 0.00 0.00 (1.33) 22.33 17.20
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
01/13/97-06/30/97 0.00 0.00 0.00 0.00 20.17 11.19
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
Class C
12/31/97 (b) 0.00 0.00 0.00 (1.33) 22.33 17.15
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
01/13/97-06/30/97 0.00 0.00 0.00 0.00 20.18 11.25
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
Equity Income Fund
Class A
12/31/97 (b) $ 0.00 $ 0.00 $ 0.00 $ (2.32) $ 15.19 13.92%
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
01/20/97-06/30/97 0.00 0.00 0.00 (0.18) 15.39 11.77
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
Class B
12/31/97 (b) 0.00 0.00 0.00 (2.27) 15.15 13.45
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
01/20/97-06/30/97 0.00 0.00 0.00 (0.16) 15.37 11.45
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
Class C
12/31/97 (b) 0.00 0.00 0.00 (2.26) 15.16 13.46
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
01/20/97-06/30/97 0.00 0.00 0.00 (0.16) 15.37 11.42
- -------------------------------- ------------- ------------- ---------- ------------- ---------- --------------
<CAPTION>
Ratio of Net
10. Retail Class-Financial Ratio of Investment
Highlights Net Assets Expenses to Income (Loss) Average
Selected Per Share Data for End of Average Net to Average Portfolio Commission
the Year or Period Ended: Period (000s) Assets Net Assets Turnover Rate Rate
- -------------------------------- ------------- ------------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C>
Emerging Markets Fund
Class A
12/31/97 (b) $ 231 1.78%* (0.39)%* 34% $ 0.01
- -------------------------------- ------------- ------------- ---------- ------------- ----------
01/20/97-06/30/97 214 1.89* 1.52* 74 0.00
- -------------------------------- ------------- ------------- ---------- ------------- ----------
Class B
12/31/97 (b) 507 2.53* (1.09)* 34 0.01
- -------------------------------- ------------- ------------- ---------- ------------- ----------
01/20/97-06/30/97 308 2.62* 0.47* 74 0.00
- -------------------------------- ------------- ------------- ---------- ------------- ----------
Class C
12/31/97 (b) 1,465 2.53* (1.10)* 34 0.01
- -------------------------------- ------------- ------------- ---------- ------------- ----------
01/20/97-06/30/97 1,833 2.63* 0.66* 74 0.00
- -------------------------------- ------------- ------------- ---------- ------------- ----------
International Developed Fund
Class A
12/31/97 (b) $ 487 1.51%* 0.10%* 37% $ 0.03
- -------------------------------- ------------- ------------- ---------- ------------- ----------
01/20/97-06/30/97 318 1.54* 1.74* 77 0.03
- -------------------------------- ------------- ------------- ---------- ------------- ----------
Class B
12/31/97 (b) 2,102 2.26* (0.60)* 37 0.03
- -------------------------------- ------------- ------------- ---------- ------------- ----------
01/20/97-06/30/97 1,123 2.28* 1.08* 77 0.03
- -------------------------------- ------------- ------------- ---------- ------------- ----------
Class C
12/31/97 (b) 3,612 2.26* (0.62)* 37 0.03
- -------------------------------- ------------- ------------- ---------- ------------- ----------
01/20/97-06/30/97 2,526 2.28* 1.07* 77 0.03
- -------------------------------- ------------- ------------- ---------- ------------- ----------
Capital Appreciation Fund
Class A
12/31/97 (b) $ 14,771 1.10%* 0.19%* 25% $ 0.05
- -------------------------------- ------------- ------------- ---------- ------------- ----------
01/20/97-06/30/97 6,534 1.11* 0.59* 87 0.06
- -------------------------------- ------------- ------------- ---------- ------------- ----------
Class B
12/31/97 (b) 12,836 1.84* (0.54)* 25 0.05
- -------------------------------- ------------- ------------- ---------- ------------- ----------
01/20/97-06/30/97 3,022 1.85* (0.26)* 87 0.06
- -------------------------------- ------------- ------------- ---------- ------------- ----------
Class C
12/31/97 (b) 38,243 1.84* (0.55)* 25 0.05
- -------------------------------- ------------- ------------- ---------- ------------- ----------
01/20/97-06/30/97 13,093 1.86* (0.23)* 87 0.06
- -------------------------------- ------------- ------------- ---------- ------------- ----------
Mid Cap Growth Fund
Class A
12/31/97 (b) $ 24,043 1.11%* 0.07%* 29% $ 0.05
- -------------------------------- ------------- ------------- ---------- ------------- ----------
01/13/97-06/30/97 12,184 1.11* 0.17* 82 0.06
- -------------------------------- ------------- ------------- ---------- ------------- ----------
Class B
12/31/97 (b) 49,941 1.85* (0.68)* 29 0.05
- -------------------------------- ------------- ------------- ---------- ------------- ----------
01/13/97-06/30/97 28,259 1.85* (0.58)* 82 0.06
- -------------------------------- ------------- ------------- ---------- ------------- ----------
Class C
12/31/97 (b) 93,258 1.85* (0.68)* 29 0.05
- -------------------------------- ------------- ------------- ---------- ------------- ----------
01/13/97-06/30/97 53,686 1.86* (0.58)* 82 0.06
- -------------------------------- ------------- ------------- ---------- ------------- ----------
Equity Income Fund
Class A
12/31/97 (b) $ 9,494 1.11%* 2.73%* 17% $ 0.06
- -------------------------------- ------------- ------------- ---------- ------------- ----------
01/20/97-06/30/97 1,756 1.13* 2.85* 45 0.06
- -------------------------------- ------------- ------------- ---------- ------------- ----------
Class B
12/31/97 (b) 6,932 1.85* 1.77* 17 0.06
- -------------------------------- ------------- ------------- ---------- ------------- ----------
01/20/97-06/30/97 2,561 1.87* 2.11* 45 0.06
- -------------------------------- ------------- ------------- ---------- ------------- ----------
Class C
12/31/97 (b) 12,430 1.85* 1.73* 17 0.06
- -------------------------------- ------------- ------------- ---------- ------------- ----------
01/20/97-06/30/97 6,624 1.87* 2.15* 45 0.06
- -------------------------------- ------------- ------------- ---------- ------------- ----------
</TABLE>
* Annualized
(a) Per share amounts based on average number of shares outstanding during
the period.
(b) Unaudited
1997 Semiannual Report 65
<PAGE>
Notes to Financial Statements (Cont.)
December 31, 1997
<TABLE>
<CAPTION>
Net Asset Net Realized/ Total Dividends Dividends in Distributions
Selected Per Share Data Value Net Unrealized Income from from Net Excess of Net from Net
for the Year or Period Beginning Investment Gain (Loss) on Investment Investment Investment Realized
Ended: of Period Income (Loss) Investments Operations Income Income Capital Gains
------------- ------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Value Fund
Class A
12/31/97 (b) $ 14.80 $ 0.09(a) $ 1.38(a) $ 1.47 $ (0.10) $ 0.00 $ (1.63)
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
01/13/97-06/30/97 13.17 0.47 1.26 1.73 (0.10) 0.00 0.00
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Class B
12/31/97 (b) 14.80 0.03(a) 1.38(a) 1.41 (0.05) 0.00 (1.63)
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
01/13/97-06/30/97 13.16 0.44 1.26 1.70 (0.06) 0.00 0.00
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Class C
12/31/97 (b) 14.80 0.03(a) 1.37(a) 1.40 (0.05) 0.00 (1.63)
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
01/13/97-06/30/97 13.15 0.43 1.28 1.71 (0.06) 0.00 0.00
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Small Cap Value Fund
Class A
12/31/97 (b) $ 15.75 $ 0.13(a) $ 2.59(a) $ 2.72 $ (0.13) $ 0.00 $ (0.76)
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
01/20/97-06/30/97 14.02 0.10 1.63 1.73 0.00 0.00 0.00
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Class B
12/31/97 (b) 15.71 0.07(a) 2.56(a) 2.63 (0.09) 0.00 (0.76)
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
01/20/97-06/30/97 14.02 0.08 1.61 1.69 0.00 0.00 0.00
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Class C
12/31/97 (b) 15.71 0.07(a) 2.57(a) 2.64 (0.09) 0.00 (0.76)
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
01/20/97-06/30/97 14.02 0.08 1.61 1.69 0.00 0.00 0.00
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Renaissance Fund
Class A
12/31/97 (b) $ 17.73 $ 0.06(a) $ 2.76(a) $ 2.82 $ (0.08) $ 0.00 $ (3.53)
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
10/01/96-06/30/97 16.08 0.12(a) 3.90(a) 4.02 (0.12) 0.00 (2.25)
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
9/30/96 14.14 0.23 2.79 3.02 (0.23) (0.07) (0.78)
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
9/30/95 12.50 0.36 1.61 1.97 (0.33) 0.00 0.00
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
9/30/94 12.88 0.34 (0.17) 0.17 (0.33) 0.00 (0.22)
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
9/30/93 10.57 0.33 2.30 2.63 (0.32) 0.00 0.00
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
9/30/92 9.92 0.34 0.71 1.05 (0.40) 0.00 0.00
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Class B
12/31/97 (b) 17.77 (0.01)(a) 2.75(a) 2.74 (0.02) 0.00 (3.53)
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
10/01/96-06/30/97 16.12 0.03(a) 3.92(a) 3.95 (0.05) 0.00 (2.25)
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
9/30/96 14.13 0.09 2.83 2.92 (0.11) (0.04) (0.78)
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
5/22/95-9/30/95 12.55 0.11 1.55 1.66 (0.08) 0.00 0.00
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Class C
12/31/97 (b) 17.69 (0.01)(a) 2.73(a) 2.72 (0.01) 0.00 (3.53)
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
10/01/96-06/30/97 16.05 0.03(a) 3.90(a) 3.93 (0.04) 0.00 (2.25)
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
9/30/96 14.09 0.12 2.78 2.90 (0.13) (0.03) (0.78)
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
9/30/95 12.47 0.27 1.59 1.86 (0.24) 0.00 0.00
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
9/30/94 12.85 0.24 (0.16) 0.08 (0.24) 0.00 (0.22)
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
9/30/93 10.56 0.25 2.29 2.54 (0.25) 0.00 0.00
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
9/30/92 9.91 0.29 0.68 0.97 (0.32) 0.00 0.00
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Balanced Fund
Class A
12/31/97 (b) $ 11.40 $ 0.01(a) $ 1.12(a) $ 1.13 $ (0.18) $ 0.00 $ (1.09)
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
01/20/97-06/30/97 10.77 0.21 0.58 0.79 (0.16) 0.00 0.00
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Class B
12/31/97 (b) 11.39 0.11(a) 0.98(a) 1.09 (0.16) 0.00 (1.09)
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
01/20/97-06/30/97 10.77 0.19 0.58 0.77 (0.15) 0.00 0.00
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Class C
12/31/97 (b) 11.39 0.11(a) 0.99(a) 1.10 (0.16) 0.00 (1.09)
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
01/20/97-06/30/97 10.77 0.18 0.58 0.76 (0.14) 0.00 0.00
- ------------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
* Annualized
(a) Per share amounts based on average number of shares outstanding during the
period.
(b) Unaudited
66 PIMCO Funds
<PAGE>
<TABLE>
<CAPTION>
Distributions
Selected Per Share Data in Excess of Distributions Tax Basis Net Asset
for the Year or Period Net Realized from Return of Total Value End
Ended: Capital Gains Equalization Capital Distributions of Period Total Return
------------- ------------- ------------- ------------- ------------- -------------
Value Fund
Class A
12/31/97 (b) $ 0.00 $ 0.00 $ 0.00 $ (1.73) $ 14.54 9.98%
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
01/13/97-06/30/97 0.00 0.00 0.00 (0.10) 14.80 13.19
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Class B
12/31/97 (b) 0.00 0.00 0.00 (1.68) 14.53 9.55
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
01/13/97-06/30/97 0.00 0.00 0.00 (0.06) 14.80 12.93
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Class C
12/31/97 (b) 0.00 0.00 0.00 (1.68) 14.52 9.48
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
01/13/97-06/30/97 0.00 0.00 0.00 (0.06) 14.80 13.02
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Small Cap Value Fund
Class A
12/31/97 (b) $ 0.00 $ 0.00 $ 0.00 $ (0.89) $ 17.58 17.33%
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
01/20/97-06/30/97 0.00 0.00 0.00 0.00 15.75 12.34
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Class B
12/31/97 (b) 0.00 0.00 0.00 (0.85) 17.49 16.80
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
01/20/97-06/30/97 0.00 0.00 0.00 0.00 15.71 12.05
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Class C
12/31/97 (b) 0.00 0.00 0.00 (0.85) 17.50 16.82
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
01/20/97-06/30/97 0.00 0.00 0.00 0.00 15.71 12.05
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Renaissance Fund
Class A
12/31/97 (b) $ 0.00 $ 0.00 $ 0.00 $ (3.61) $ 16.94 16.17%
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
10/01/96-06/30/97 0.00 0.00 0.00 (2.37) 17.73 27.53
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
9/30/96 0.00 0.00 0.00 (1.08) 16.08 22.37
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
9/30/95 0.00 0.00 0.00 (0.33) 14.14 16.10
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
9/30/94 0.00 0.00 0.00 (0.55) 12.50 1.40
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
9/30/93 0.00 0.00 0.00 (0.32) 12.88 25.30
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
9/30/92 0.00 0.00 0.00 (0.40) 10.57 10.70
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Class B
12/31/97 (b) 0.00 0.00 0.00 (3.55) 16.96 15.67
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
10/01/96-06/30/97 0.00 0.00 0.00 (2.30) 17.77 26.88
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
9/30/96 0.00 0.00 0.00 (0.93) 16.12 21.54
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
5/22/95-9/30/95 0.00 0.00 0.00 (0.08) 14.13 13.30
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Class C
12/31/97 (b) 0.00 0.00 0.00 (3.54) 16.87 15.65
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
10/01/96-06/30/97 0.00 0.00 0.00 (2.29) 17.69 26.86
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
9/30/96 0.00 0.00 0.00 (0.94) 16.05 21.52
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
9/30/95 0.00 0.00 0.00 (0.24) 14.09 15.20
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
9/30/94 0.00 0.00 0.00 (0.46) 12.47 0.70
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
9/30/93 0.00 0.00 0.00 (0.25) 12.85 24.40
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
9/30/92 0.00 0.00 0.00 (0.32) 10.56 9.90
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Balanced Fund
Class A
12/31/97 (b) $ 0.00 $ 0.00 $ 0.00 $ (1.27) $ 11.26 9.91%
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
01/20/97-06/30/97 0.00 0.00 0.00 (0.16) 11.40 7.42
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Class B
12/31/97 (b) 0.00 0.00 0.00 (1.25) 11.23 9.51
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
01/20/97-06/30/97 0.00 0.00 0.00 (0.15) 11.39 7.15
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Class C
12/31/97 (b) 0.00 0.00 0.00 (1.25) 11.24 9.62
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
01/20/97-06/30/97 0.00 0.00 0.00 (0.14) 11.39 7.12
- -------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
<CAPTION>
Ratio of Net
Ratio of Investment
Net Assets Expenses to Income (Loss) Average
Selected Per Share Data for End of Average Net to Average Portfolio Commission
the Year or Period Ended: Period (000s) Assets Net Assets Turnover Rate Rate
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Value Fund
Class A
12/31/97 (b) $ 18,436 1.10%* 1.17%* 33% $ 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
01/13/97-06/30/97 15,648 1.11* 1.71* 71 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
Class B
12/31/97 (b) 30,370 1.86* 0.43* 33 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
01/13/97-06/30/97 25,433 1.86* 0.96* 71 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
Class C
12/31/97 (b) 76,988 1.86* 0.43* 33 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
01/13/97-06/30/97 64,110 1.86* 0.97* 71 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
Small Cap Value Fund
Class A
12/31/97 (b) $ 32,115 1.26%* 1.48%* 18% $ 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
01/20/97-06/30/97 6,563 1.30* 1.94* 48 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
Class B
12/31/97 (b) 60,582 2.01* 0.75* 18 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
01/20/97-06/30/97 11,077 2.04* 1.23* 48 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
Class C
12/31/97 (b) 86,913 2.01* 0.75* 18 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
01/20/97-06/30/97 20,637 2.05* 1.13* 48 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
Renaissance Fund
Class A
12/31/97 (b) $ 45,857 1.26%* 0.64%* 105% $ 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
10/01/96-06/30/97 33,606 1.23* 0.95* 131 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
9/30/96 20,631 1.25 1.60 203 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
9/30/95 12,933 1.30 2.90 177
- -------------------------------- ------------- ------------- ------------- -------------
9/30/94 14,942 1.30 2.70 175
- -------------------------------- ------------- ------------- ------------- -------------
9/30/93 6,328 1.30 2.90 168
- -------------------------------- ------------- ------------- ------------- -------------
9/30/92 2,593 1.40 3.30 149
- -------------------------------- ------------- ------------- ------------- -------------
Class B
12/31/97 (b) 53,661 2.01* (0.11)* 105 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
10/01/96-06/30/97 37,253 1.97* 0.20* 131 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
9/30/96 15,693 2.00 0.85 203 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
5/22/95-9/30/95 1,760 2.10* 2.20* 177
- -------------------------------- ------------- ------------- ------------- -------------
Class C
12/31/97 (b) 370,999 2.01* (0.12)* 105 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
10/01/96-06/30/97 313,226 1.97* 0.21* 131 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
9/30/96 230,058 2.00 0.85 203 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
9/30/95 174,316 2.10 2.10 177
- -------------------------------- ------------- ------------- ------------- -------------
9/30/94 178,892 2.00 2.00 175
- -------------------------------- ------------- ------------- ------------- -------------
9/30/93 94,247 2.10 2.20 168
- -------------------------------- ------------- ------------- ------------- -------------
9/30/92 45,101 2.10 2.70 149
- -------------------------------- ------------- ------------- ------------- -------------
Balanced Fund
Class A
12/31/97 (b) $ 6,065 1.11%* 2.62%* 85% $ 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
01/20/97-06/30/97 366 1.15* 3.01* 199 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
Class B
12/31/97 (b) 3,931 1.85* 1.88* 85 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
01/20/97-06/30/97 1,124 1.90* 2.28* 199 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
Class C
12/31/97 (b) 4,146 1.85* 1.87* 85 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
01/20/97-06/30/97 921 1.90* 2.26* 199 0.06
- -------------------------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
* Annualized
(a) Per share amounts based on average number of shares outstanding during the
period.
(b) Unaudited
1997 Semeannual Report 67
<PAGE>
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
Gary L. Light, Trustee
Richard L. Nelson, Trustee
Lyman W. Porter, Trustee
Alan Richards, Trustee
Joel Segall, Trustee
W. Bryant Stooks, Trustee
Gerald M. Thorne, Trustee
Newton B. Schott, Jr., Secretary
John P. Hardaway, Treasurer
Investment Advisor
PIMCO Advisors L.P.
840 Newport Center Drive, Suite 360
Newport Beach, California 92660
Administrator
Pacific Investment Management Company
840 Newport Center Drive, Suite 360
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
Price Waterhouse LLP
1055 Broadway
Kansas City, Missouri 64105
<PAGE>
PIMCO
840 Newport Center Drive, Suite 360
Newport Beach, CA 92660
800.927.4648
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.
PIMCO Funds Distributors LLC
2187 Atlantic Street, Stamford, CT 06902
