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NICHOLAS | APPLEGATE-REGISTERED TRADEMARK- INSTITUTIONAL FUNDS
SUPPLEMENT TO PROSPECTUSES
INSTITUTIONAL AND RETIREMENT SHARES DATED JULY 9, 1999
JULY 26, 1999
At a meeting held on July 15, 1999 shareholders of the High Quality
Bond and the Short Intermediate Fixed Income Funds (the "Funds") approved a
new subadvisory agreement between the Investment Adviser and Criterion
Investment Management LLC ("Criterion") whereby Criterion provides
investment research and day-to-day management of the Funds' portfolios.
Organized in April 1999, Criterion is registered under the Investment
Advisers Act of 1940 and is a wholly owned subsidiary of Westdeutsche
Landesbank Girzozentrale. Its principal address is 1990 Post Oak Boulevard,
Houston, Texas 77056. Criterion previously was the fixed income asset
management division of the Investment Adviser and now provides investment
advice to the Funds and approximately 80 other separate institutional clients
with approximately $9 billion in assets under management.
As compensation for Criterion's services under the new subadvisory
agreement, the Investment Adviser will pay Criterion monthly, a subadvisory
fee at an annual rate of .25% of each Fund's average daily net assets.
THE INFORMATION UNDER THE SECTION ENTITLED "PRINCIPAL INVESTMENTS" FOR THE
HIGH QUALITY BOND FUND IS REVISED AS FOLLOWS:
The average dollar weighted duration of the Fund will range from two to eight
years.
