EXHIBIT 99.B5 (viii)
SUPPLEMENT TO
INVESTMENT ADVISORY CONTRACT
PIMCO Funds: Pacific Investment Management Company
000 Xxxxxxx Xxxxxx Xxxxx
Xxxxxxx Xxxxx, Xxxxxxxxxx 00000
_______________, 1998
Pacific Investment Management Company
000 Xxxxxxx Xxxxxx Xxxxx
Xxxxxxx Xxxxx, Xxxxxxxxxx 00000
RE: PIMCO Municipal Bond Fund
Dear Sirs:
This will confirm the agreement between the undersigned (the "Trust") and
Pacific Investment Management Company (the "Adviser") as follows:
1. The Trust is an open-end management investment company organized as a
Massachusetts business trust and consisting of such separate investment
portfolios as have been or may be established by the Trustees of the Trust from
time to time. A separate class of shares of beneficial interest in the Trust is
offered to investors with respect to each investment portfolio. The PIMCO
Municipal Bond Fund (the "Fund") is a separate investment portfolio of the
Trust.
2. The Trust and the Adviser have entered into an Investment Advisory
Contract ("Contract") dated November 22, 1994, as amended October 1, 1995,
pursuant to which the Trust has employed the Adviser to provide investment
advisory and other services specified in the Contract, and the Adviser has
accepted such employment.
3. As provided in paragraph 1 of the Contract, the Trust hereby appoints the
Adviser to serve as Investment Adviser with respect to the Fund, and the Adviser
accepts such appointment, the terms and conditions of such employment to be
governed by the Contract, which is hereby incorporated herein by reference.
4. As provided in paragraph 6 of the Contract and subject to further
conditions as set forth therein, the Trust shall with respect to the Fund pay
the Adviser a monthly fee on the first business day of each month, based upon
the average daily value (as determined on each business day at the time set
forth in the Prospectus for determining net asset value per share) of the net
assets of the Fund during the preceding month at the annual rate of .25%.
5. This Supplement and the Contract shall become effective with respect to
the Fund on _______________, 1998, and shall thereafter continue in effect with
respect to the Fund for a period of more than two years from such date only so
long as the continuance is specifically approved at least annually (a) by the
vote of a majority of the outstanding voting securities of the Fund (as defined
in the 1940 Act) or by the Trust's Board of Trustees and (b) by the vote, cast
in person at a meeting called for that purpose, of a majority of the Trust's
Trustees who are not parties to this Contract or "interested persons" (as
defined in the Investment Company Act of 1940 ("1940 Act") of any such party.
This Contract may be terminated with respect to the Trust at any time, without
the payment of any penalty, by vote of a majority of the outstanding voting
securities of the Fund (as defined in the 1940 Act) or by a vote of a majority
of the Trust's entire Board of Trustees on 60 days' written notice to the
Adviser. This Contract shall terminate automatically in the event of its
assignment (as defined in the 1940 Act).
If the foregoing correctly sets forth the agreement between the Trust and the
Adviser, please so indicate by signing and returning to the Trust the enclosed
copy hereof.
Very truly yours,
PIMCO Funds: Pacific Investment Management
Series
By: ___________________________________
Title:
Accepted:
Pacific Investment Management Company
By: ________________________________
Title:
