PIMCO Reports Third Quarter Earnings and Record Net Inflows; Assets Under Management Reach Record $256 Billion


NEWPORT BEACH, Calif., Oct. 27, 1999 (PRIMEZONE) -- PIMCO Advisors Holdings L.P. (NYSE:PA) today reported earnings for the third quarter ended September 30, 1999 of $21.9 million, or $0.42 per unit and record net inflows of $6.9 billion for the quarter.


                            3 Mos    3 Mos    9 Mos    9 Mos
                            Ending   Ending   Ending   Ending
                            9/30/99  9/30/98  9/30/99  9/30/98
                            (in 000's, except per unit data)
PIMCO Advisors Holdings L.P.
Recurring Earnings Per Unit,
  Diluted                    $0.42    $0.39    $1.22    $1.11
Non-Recurring Items           ---      ---     (0.14)    ---
Earnings Per Unit, diluted   $0.42    $0.39    $1.08    $1.11
  
PIMCO Advisors L.P. 
Assets Under Management
  (in millions)           $256,153 $225,886  $256,153  $225,886
Revenues                  $242,927 $213,937  $716,195  $624,406
Income Before 
  non-Recurring Items     $ 59,316 $ 51,252  $169,538  $153,154
Net Income                $ 59,316 $ 51,252  $154,039  $153,154

PIMCO Advisors Holdings ("Holdings") derives its income from its 44 percent ownership in PIMCO Advisors L.P., the operating company. Operating profit available for distribution for Holdings reflects its proportionate share of the operating company's cash distributions.

Net income for Holdings during the three months ended September 30, 1999 increased 10.7 percent to $21.9 million, or $0.42 per unit, compared with net income of $19.8 million, or $0.39 per unit, for the same quarter last year. For the nine months ended September 30, 1999, net income increased 12.2 pct before the effect of non-recurring items in the first two quarters, and was $62.5 million, or $1.22 per unit, compared to net income of $55.7 million, or $1.11 per unit, for the same period of 1998. Including the effect of non-recurring items, net income for Holdings for the nine months was $55.7 million.

At the operating company, net income increased 15.7 percent for the third quarter to $59.3 million, compared with net income of $51.3 million in the third quarter last year. Revenues increased 13.6 percent to $242.9 million from $213.9 million in revenues in the same quarter last year. For the nine months ended September 30, 1999, net income rose 10.7 pct before the effect of non-recurring items in the first two quarters, and was $169.5 million compared with net income of $153.2 million in the same period last year. Revenue rose 14.7 percent to $716.2 million, compared to $624.4 million in the same period in 1998. Including the effect of the non-recurring items, net income at the operating company for the nine months ended September 30, 1999 was $154.0 million.

William Cvengros, chief executive officer of PIMCO Advisors commented, "This quarter we achieved a record $6.9 billion in net inflows primarily as a result of new business growth at our fixed income franchise, Pacific Investment Management Company. During a variety of market conditions, PIMCO Advisors has now achieved 19 consecutive quarters of net cash inflows."

Highlights for the third quarter include:

* Record net cash inflows of $6.9 billion -- consisting of inflows of $8.9 billion into Pacific Investment Management and outflows of $2.0 billion from PIMCO Advisor's equity subsidiaries. Equity outflows occurred primarily at Oppenheimer Capital.

* Assets under management reached a record $256.2 billion at September 30, 1999. The overall increase in assets in the quarter of $1.6 billion reflects a net equity market decline of $5.4 billion. The resulting mix of the Company's managed assets is 67 percent fixed-income and 33 percent equities.

* Holdings declared a third quarter distribution of $0.60 - an increase of $0.02 from the $0.58 declared in the second quarter of this year, and $0.05 higher than the distribution in the third quarter of last year.

* PIMCO Funds year-to-date net flows through September aggregate $9.7 billion which is 40 percent higher than 1998 flows for the same period.

* PIMCO Global grew to $16.1 billion under management compared to $14.1 billion at the beginning of the year primarily due to net inflows.

PIMCO Advisors is one of the largest investment management companies in the United States with over $256 billion of assets under management. Its investment advisor subsidiaries, led by Pacific Investment Management Company and Oppenheimer Capital, are widely recognized for consistently posting attractive performance and providing high quality service to more than 1,600 institutional clients worldwide, including one-third of the nation's largest 100 corporations. In addition, PIMCO Advisors manages a family of 53 stock and bond mutual funds available to both retail and institutional investors.

Except for the historical information and discussions contained herein, statements contained in this news release constitute "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the performance of financial markets, the investment performance of PIMCO Advisors L.P.'s sponsored investment products and separately managed accounts, general economic conditions, future acquisitions, competitive conditions and government regulations, including changes in tax laws. PIMCO Advisors Holdings L.P. cautions readers to carefully consider such factors. Further, such forward-looking statements speak only on the date at which such statements are made. PIMCO Advisors Holdings L.P. undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.


PIMCO Advisors Holdings L.P. (1)
(in 000's except per unit data)

                                  For the   For the
                                 3 months  3 months
                                  Ending    Ending     Pct
                                 9/30/99   9/30/98    Change
Equity in earnings of Pimco
  Advisors L.P                   $ 25,971  $ 22,669   14.6 pct
Provision for taxes and other       4,038     2,849  
     Net Income                  $ 21,933  $ 19,820   10.7 pct
 
Net Income                       $ 21,933  $ 19,820   10.7 pct
Share of distributed non cash 
  charges at Pimco Advisors L.P.    8,218     7,720    6.5 pct
Operating Profit Available for
  distribution                   $ 30,151  $ 27,540    9.5 pct
  
Weighted average units 
  Outstanding                      49,478    48,250 
  
Net income per unit 
     Basic (1)                   $   0.44  $   0.41    7.3 pct
     Diluted (1)                 $   0.42  $   0.39    7.7 pct
 
Distributions Declared           $   0.60  $   0.55 

(1) Reflects a non-recurring charge of $0.17 per unit in the
    first quarter of 1999 and a non-recurring gain of $0.03 per
    unit in the second quarter of 1999. Holdings' net income
    prior to the non-recurring items was $6.8 million higher
    through September 30,1999.
  
  
PIMCO Advisors Holdings L.P. (1)
(in 000's except per unit data)
  
                                  For the   For the
                                 9 months  9 months
                                  Ending    Ending     Pct
                                 9/30/99   9/30/98    Change 
Equity in earnings of Pimco
  Advisors L.P.                  $ 67,434  $ 66,341   1.6 pct
Provision for taxes and other      11,728  $10,622
     Net Income                  $ 55,706  $ 55,719   0.0 pct
 
Net Income                       $ 55,706  $ 55,719   0.0 pct
Share of distributed non cash 
  charges at Pimco Advisors L.P.   32,477    19,767  64.3 pct
Operating Profit Available for
  Distribution                   $ 88,183  $ 75,486  16.8 pct
  
Weighted average units
  Outstanding                      49,057    47,238 
  
Net income per unit
     Basic (1)                   $   1.14  $   1.18  -3.4 pct
     Diluted (1)                 $   1.08  $   1.11  -2.7 pct
 
Distributions Declared           $   1.76  $   1.61 
  
(1) Reflects a non-recurring charge of $0.17 per unit in the 
    first quarter of 1999 and a non-recurring gain of $0.03 per
    unit in the second quarter of 1999. Holdings' net income
    prior to the non-recurring items was $6.8 million higher
    through September 30,1999.
  
  
  
PIMCO Advisors  L.P.
(in 000's except per unit data)
  
                                  For the   For the
                                 3 months  3 months
                                  Ending    Ending      Pct
                                 9/30/99   9/30/98     Change 
  
     Net income(1)               $ 59,316  $ 51,252   15.7 pct
     Non-cash charges              19,125    20,374   -6.1 pct
     Other                           (270)       45 -700.0 pct
     Operating Profit Available
       for Distribution          $ 78,171  $ 71,671    9.1 pct
  
OPAD per Unit (2)                $   0.69  $   0.66    4.5 pct
 
Distributions Declared           $   0.69  $   0.63    9.5 pct
 
(1) Reflects a non-recurring charge of $19.4 million or $0.17
    per unit in the first quarter of 1999 related to severance
    and relocation at Oppenheimer Capital and a non-recurring
    gain of $3.9 million or $0.03 per unit in the second
    quarter of 1999 related to the sale of the Blairlogie sub-
    partnership.
(2) Reflects the $0.08 per unit cash portion of the non-
    recurring charge in the first quarter of 1999 and $0.03 per
    unit cash portion of the non-recurring gain in the second
    quarter of 1999.
  
  
PIMCO Advisors  L.P.
(in 000's except per unit data)
  
                                  For the   For the
                                 9 months  9 months
                                  Ending    Ending     Pct
                                 9/30/99   9/30/98    Change 
  
     Net income(1)               $154,039  $153,154    0.6 pct
     Non-cash charges              68,105    60,205   13.1 pct
     Other                           (221)      215 -202.8 pct
     Operating Profit Available 
       for Distribution          $221,923  $213,574    3.9 pct
  
OPAD per Unit (2)                $   1.98  $   1.97    0.5 pct
  
Distributions Declared           $   2.03  $   1.83   10.9 pct
  
(1) Reflects a non-recurring charge of $19.4 million or $0.17 
    per unit in the first quarter of 1999 related to severance
    and relocation at Oppenheimer Capital and a non-recurring
    gain of $3.9 million or $0.03 per unit in the second
    quarter of 1999 related to the sale of the Blairlogie sub-
    partnership.
(2) Reflects the $0.08 per unit cash portion of the non-
    recurring charge in the first quarter of 1999 and $0.03 per
    unit cash portion of the non-recurring gain in the second 
    quarter of 1999.
  
  
  
PIMCO Advisors  L.P.
(in 000's except per unit data)
  
                                  For the   For the
                                 3 months  3 months
                                  Ending    Ending      Pct
                                 9/30/99   9/30/98     Change 
Revenues
     Investment advisory fees:
       Private accounts          $135,649  $135,109    0.4 pct
       Proprietary funds           77,536    57,518   34.8 pct
     Distribution, servicing fees  29,742    21,310   39.6 pct
       Total revenues             242,927   213,937   13.6 pct
  
Expenses (1) 
     Compensation and benefits     97,954    88,898   10.2 pct
     Commissions                   21,233    20,048    5.9 pct
     Restricted unit and 
       option plans                 5,362     6,611  -18.9 pct
     Marketing and promotional      8,965     6,690   34.0 pct
     Occupancy and equipment       10,919     6,169   77.0 pct
     General and administrative    15,971    11,449   39.5 pct
     Insurance                        564       690  -18.3 pct
     Professional fees              2,429     1,986   22.3 pct
     Amortization of intangibles   13,763    13,763    0.0 pct
     Other (income) expense, net    6,451     6,381    1.1 pct
       Total expenses             183,611   162,685   12.9 pct
 
Net Income (1)                   $ 59,316  $ 51,252   15.7 pct
 
Weighted Average Units Outstanding
  (all classes):
     Basic                        112,461   109,008 
     Diluted                      117,624   114,184 
 
Net income per unit:
     Basic (1)                   $   0.53  $   0.47 
     Diluted (1) (2)             $   0.50  $   0.45 
  
Assets under management by
  investment type (in 000,000's): 
Institutional separate
     Fixed income                $117,361  $102,109    14.9 pct
     Equity                        44,441    45,305    -1.9 pct
Retail products and mutual funds   94,351    78,472    20.2 pct
       Total                     $256,153  $225,886    13.4 pct
  
  
Assets under management by
  mix (in 000,000's):
Fixed income                     $168,073  $141,816    18.5 pct
Equity                             84,818    80,993     4.7 pct
Money Market                        3,262     3,077     6.0 pct
       Total                     $256,153  $225,886    13.4 pct
  
(1) Reflects a non-recurring charge of $19.4 million or $0.17 
    per unit in the first quarter of 1999 related to severance
    and relocation at Oppenheimer Capital and a non-recurring
    gain of $3.9 million or $0.03 per unit in the second 
    quarter of 1999 related to the sale of the Blairlogie sub 
    partnership.
  
(2) Does not include the weighted average effect of 2.4 million
    units issuable upon exchange of approximately $80.5 million
    of 6 pct debt because such exchange would be antidilutive
    to earnings per unit.
  
  
  
PIMCO Advisors  L.P.
(in 000's except per unit data)
  
                                  For the   For the
                                 9 months  9 months
                                  Ending    Ending     Pct
                                 9/30/99   9/30/98    Change 
     Investment advisory fees: 
       Private accounts          $417,191  $406,470    2.6 pct
       Proprietary funds          215,933   158,141   36.5 pct
     Distribution, servicing fees  83,071    59,795   38.9 pct
       Total revenues             716,195   624,406   14.7 pct
 
Expenses (1) 
     Compensation and benefits    295,837   262,990   12.5 pct
     Commissions                   67,786    57,073   18.8 pct
     Restricted unit and 
       option plans                26,816    18,916   41.8 pct
     Marketing and promotional     26,946    19,409   38.8 pct
     Occupancy and equipment       30,426    16,729   81.9 pct
     General and administrative    46,160    31,256   47.7 pct
     Insurance                      1,708     2,321  -26.4 pct
     Professional fees              6,474     5,930    9.2 pct
     Amortization of intangibles   41,289    41,289    0.0 pct
     Other (income) expense, net   18,714    15,339   22.0 pct
       Total expenses             562,156   471,252   19.3 pct
 
Net Income (1)                   $154,039  $153,154    0.6 pct
 
Weighted Average Units Outstanding 
  (all classes):
     Basic                        111,759   108,223 
     Diluted                      116,748   113,824 
  
Net income per unit: 
     Basic (1)                   $   1.38  $   1.42 
     Diluted (1) (2)             $   1.32  $   1.35 
  
  
(1) Reflects a non-recurring charge of $19.4 million or $0.17 
    per unit in the first quarter of 1999 related to severance
    and relocation at Oppenheimer Capital and a non-recurring 
    gain of $3.9 million or $0.03 per unit in the second 
    quarter of 1999 related to the sale of the Blairlogie sub 
    partnership.
(2) Does not include the weighted average effect of 2.4 million
    units issuable upon exchange of approximately $80.5 million
    of 6 pct debt because such exchange would be antidilutive 
    to earnings per unit.

CONTACT:  Investor Contact: 
          PIMCO Advisors
          Kelli Powell
          800-387-4626
  
          Media Contact: 
          Steve Hawkins/Linda Press
          Sitrick And Company
          310-788-2850