NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nicholas-Applegate Mutual Funds (the "Trust") is organized as a diversified, open-end management investment
company which offers 43 separate series comprised of Portfolios A, with an initial sales charge, B, with a back-
end sales charge, C, with a level asset based sales charge, Institutional, with no load, and Qualified, with no load
(each a "Portfolio" and collectively the "Portfolios"). The Portfolios of the Trust seek to achieve their respective
investment objectives by investing all of their assets in corresponding series of Nicholas-Applegate Investment
Trust (the "Master Trust"), a diversified open-end management investment company offering twelve investment
vehicles (the "Funds").
Pursuant to Rule 24f-2 under the Investment Company Act, the Trust has elected to register an indefinite number
of shares. The Trust commenced operations on April 19, 1993.
Each Portfolio accrues income, net of expenses, daily on its investment in the applicable Fund. All of the net
investment income (deficit) and realized and unrealized gains and losses from the security transactions and foreign
currency of the Fund are allocated pro rata among the investors in the Fund at the time of such determination.
FEDERAL INCOME TAXES
It is the Portfolios' policy to comply with the requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of their taxable income to their shareholders. Accordingly,
no federal income tax provisions are required if the Portfolios continue to comply with such requirements.
The Funds are treated as partnerships for federal income tax purposes. Any interest, dividends and gains or
losses of the Funds will be deemed to have been "passed through" to the Portfolios.
Net investment income and net realized gains for the year, (or period where appropriate), differ for financial
statement and tax pur