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Nicholas-Applegate Mutual Funds
600 West Broadway
San Diego, California 92101
March 20, 1998
Dear Shareholder:
Your Board of Trustees has determined that it would be in the best
interests of the shareholders of the Nicholas-Applegate High Yield Bond
Institutional Portfolio (the "High Yield Bond Portfolio") to reorganize from its
current "master-feeder" structure to a "multi-class" structure even if the other
Portfolios of the Trust are not reorganized. Accordingly, it has determined
that approval of Proposals 1 and 2 in the Combined Proxy Statement and
Prospectus dated January 14, 1998 (the "Proxy Statement"), which was previously
sent to you, will not be conditioned upon approval of any of the Proposals
referred to in the Proxy Statement by any other Portfolios of the Trust.
This change will permit the prompt implementation of a multi-class
structure for the High Yield Bond Portfolio. Management of the Trust believes
that even if the proposed reorganization of the other Portfolios is not
consummated, the reorganization of the High Yield Bond Portfolio will provide
its shareholders with the economies referred to in the Proxy Statement.
Your Board of Trustees recommends that you approve the reorganization
of the High Yield Bond Portfolio. Please sign, date and mail the enclosed proxy
card promptly in the enclosed return envelope. Your vote is important for the
proper administration of the Trust.
Thank you for your attention to this matter. If you have any
questions on voting of proxies or the proposals to be considered at the meeting,
please call us toll free at 1-800-551-8045.
E. Blake Moore, Jr.
SECRETARY
