Effective March 28, 2008, Class C shares of the Allianz and PIMCO Funds that were initially acquired before July 1, 1991,or subsequently purchased through exchange or dividend reinvestment of such shares (“Old C shares”), will be converted to Class A shares of the same Allianz and PIMCO Fund(s).  These Old C shares are part of a legacy share class structure that no longer exists in our product line and their conversion is intended to allow shareholders who initially acquired Old C shares to benefit from the lower expense ratios currently offered through Class A shares.

The conversion will occur at net asset value (“NAV”) of the respective funds involved and is a nontaxable transaction.  Please refer to the “Investment Options” section of each fund’s prospectus for information regarding sales charges and expenses of the share classes.

The conversion will apply only to Old C shares. Following the conversion, shareholders who held Old C shares will own Class A shares of their respective
fund(s). In addition, because the exchange will be done on a dollar-for-dollar basis, the number of shares in an account may change. However, account values will not be affected. These changes will be reflected in trade confirmations that shareholders will receive as a result of the conversion and on their March 31, 2008, account statements.

Shareholders who have any questions about the share-class conversion, should contact their Financial Advisor or call Investor Services at 1-800-426-0107.