<PAGE>
PIMCO FUNDS: MULTI-MANAGER SERIES
Supplement Dated July 21, 2000
to the
Prospectus for Institutional and Administrative Class Shares
Dated April 3, 2000
DISCLOSURE RELATING TO PIMCO INTERNATIONAL GROWTH FUND
Change in Advisory Fee Rate
On May 8, 2000, the monthly advisory fee payable by PIMCO International
Growth Fund (the "Fund") to PIMCO Advisors L.P. ("PIMCO Advisors"), the Fund's
investment adviser and administrator, decreased by 0.10% , from 0.85% of the
average daily net assets of the Fund to 0.75% of the average daily net assets of
the Fund.
The subsection of the Fund's Fund Summary captioned "Fees and Expenses of
the Fund" is amended in its entirety to read as follows.
FEES AND EXPENSES OF THE FUND
These tables describe the fees and expenses you may pay if you buy and hold
Institutional Class or Administrative Class shares of the Fund:
SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT) None
ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
<TABLE>
<CAPTION>
Distribution Total Annual
Advisory and/or Service Other Fund Operating
Share Class Fees (12b-1) Fees Expenses(1) Expenses
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Institutional 0.75% None 0.50% 1.25%
--------------------------------------------------------------------------------------------------------------------------
Administrative 0.75 0.25% 0.50 1.50
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Other Expenses reflects a 0.50% Administrative Fee paid by the class.
EXAMPLES. The Examples below are intended to help you compare the cost of
investing in Institutional Class or Administrative Class shares of the Fund with
the costs of investing in other mutual funds. The Examples assume that you
invest $10,000 in the noted class of shares for the time periods indicated, and
then redeem all your shares at the end of those periods. The Examples also
assume that your investment has a 5% return each year, the reinvestment of all
dividends and distributions, and the Fund's operating expenses remain the same.
Although your actual costs may be higher or lower, the Examples show what your
costs would be based on these assumptions.
<TABLE>
<CAPTION>
Share Class Year 1 Year 3 Year 5 Year 10
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Institutional $127 $397 $686 $1,511
---------------------------------------------------------------------------------------------------------------------
Administrative 153 474 818 1,791
---------------------------------------------------------------------------------------------------------------------
</TABLE>
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CHANGES TO PRINCIPAL INVESTMENTS AND STRATEGIES
Effective on or around October 2, 2000, the description of PIMCO
International Growth Fund under "Principal Investments and Strategies" in the
Fund's Fund Summary is amended to read in its entirety as follows:
The Fund seeks to achieve its investment objective by
normally investing at least 65% of its assets in an
international portfolio of common stocks and other equity
securities of companies located outside of the United
States. Although the Fund normally invests in issuers from
at least five different countries, it may at times invest
in fewer than five countries, or even a single country. The
Fund typically invests in approximately 50 to 60 stocks,
with each stock usually constituting from 1.25% to 2.5% of
the Fund's portfolio. The Fund may invest in both developed
and developing, or "emerging," markets. The Fund has no
prescribed limits on geographic asset distribution and may
invest in any foreign securities market in the world. The
Fund may also invest in securities of foreign issuers
traded on U.S. securities markets, but will normally not
invest in U.S. issuers. The Fund invests most of its assets
in foreign securities which trade in currencies other than
the U.S. dollar and may invest directly in foreign
currencies.
The portfolio manager selects securities for the Fund using
the Sub-Adviser's "Best Research" investment style. The
Best Research style uses a research-driven "bottom-up"
approach that seeks to utilize the Sub-Adviser's global
research capabilities to identify companies with above-
average long-term growth prospects and attractive
valuations and that possess a sustainable competitive
advantage, such as superior or innovative products,
personnel and distribution systems. The portfolio manager
seeks to select those stocks with the best long-term
performance expectations, using a broad range of company
fundamentals, such as long-term growth prospects, price-to-
earnings ratios and other valuation measures, dividend and
profit growth, balance sheet strength and return on assets.
The portfolio managers sell stocks in order to adjust or
rebalance the Fund's portfolio and to replace companies
with weakening fundamentals.
The Fund may utilize foreign currency exchange contracts
and derivative instruments (such as stock index futures
contracts) primarily for portfolio management and hedging
purposes. The Fund may also invest in equity securities
other than common stocks (such as equity-linked securities,
preferred stocks and convertible securities) and may invest
up to 10% of its assets in other investment companies. In
response to unfavorable market and other conditions, the
Fund may make temporary investments of some or all of its
assets in foreign and domestic fixed income securities and
in equity securities of U.S. issuers. This would be
inconsistent with the Fund's investment objective and
principal strategies.
Change in Investment Objective
Effective on or around October 2, 2000, the Fund intends to change its
investment objective to read as follows: "Seeks capital appreciation."
EXPECTED CHANGES IN SUB-ADVISORY ARRANGEMENTS
Subject to the approval of the shareholders of the Fund, beginning on or
around October 2, 2000 PIMCO Advisors intends to retain PIMCO/Allianz
International Advisors LLC ("PAIA") as the sub-adviser to the Fund. PAIA is a
wholly owned subsidiary of PIMCO Advisors. As sub-adviser, PAIA will have full
investment discretion
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and will make all determinations with respect to the investment of the Fund's
assets. Summary information about PAIA and the individuals who will have primary
investment management responsibility for the Fund is provided below.
Name and Address
----------------
PIMCO/Allianz Investment Advisors LLC
1345 Avenue of the Americas
50th Floor
New York, NY 10105
Portfolio Managers
------------------
Udo Frank
Gerd Wolfgang Hintz
Recent Professional Experience
------------------------------
Mr. Frank. Managing Director and Chief Investment Officer of Allianz Asset
Advisory and Management GmbH ("Allianz AAM"), responsible for the entire
investment area (since 1997). Previously, Mr. Frank served as the Chief
Investment Officer of Allianz KAG (since 1994).
Mr. Hintz. Managing Director of the Equity Research Department at Allianz AAM
since 1998. In addition, Mr. Hintz has been responsible for Allianz AAM's
trading department since January 2000. Previously, he was the head of Research
and Investor Relations of Allianz Lebensverischerungs AG.
CHANGE OF NAME
In connection with the above changes, on or around October 2, 2000 the
Fund intends to change its name to "PIMCO/Allianz Select International Fund."
