<PAGE>
 
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-Q
(Mark One)

      (x)         QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

               For the quarterly period ended September 30, 1996

                                       OR

            TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

      For the transition period from                to
                                     ---------------   --------------  
                           Commission File Number 1-09772

                              PIMCO ADVISORS L.P.
             (Exact name of registrant as specified in its charter)

             Delaware                                    06-1349805
   (State or other jurisdiction of          (I.R.S. Employer Identification No.)
    incorporation or organization)


                            800 Newport Center Drive
                            Newport Beach, CA 92660
                    (Address of principal executive offices)
                                   (Zip Code)

                                 (714) 717-7022
              (Registrant's telephone number, including area code)

              (Former name, former address and former fiscal year,
                         if changed since last report)

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

Yes  X    No
   ------   ------


               APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

     Indicate by check mark whether the registrant has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 subsequent to the distribution of securities under a plan confirmed by a
court.

Yes      No 
   -----    -----

     As of September 30, 1996, 13,588,764 publicly traded Class A units of
limited partner interest and 26,557,391 privately-held Class A units of limited
partner interest were issued and outstanding. There were 800,000 units of
general partner interest issued and outstanding at September 30, 1996. In
addition, there were 32,960,826 privately-held Class B units of limited partner
interest issued and outstanding at September 30, 1996.
<PAGE>
 
                              PIMCO ADVISORS L.P.

                                     INDEX
<TABLE>
 
<S>                                                                                         <C> 
PART I       FINANCIAL INFORMATION

     Item 1. Consolidated Financial Statements (Unaudited)

             Consolidated Statements of Financial Condition as of
                    September 30, 1996 and December 31, 1995                                  3
 
             Consolidated Statements of Operations for the nine months
                    ended September 30, 1996 and September 30, 1995                           4
 
             Consolidated Statements of Operations for the three months
                    ended September 30, 1996 and September 30, 1995                           5
 
             Consolidated Statements of Cash Flows for the nine months
                    ended September 30, 1996 and September 30, 1995                           6
 
             Notes to Consolidated Financial Statements                                       7
 
     Item 2. Management's Discussion and Analysis of
              Financial Condition and Results of Operations                                8-10
 
PART II      OTHER INFORMATION
 
     Item 5. Other Information                                                               11
 
     Item 6. Exhibits and Reports on Form 8-K                                                11
</TABLE>

                                       2
<PAGE>

PART I:  FINANCIAL INFORMATION

      Item 1.  Financial Statements


                     PIMCO Advisors L.P. and Subsidiaries
                Consolidated Statements of Financial Condition
                                  (Unaudited)

<TABLE>
<CAPTION>

                                                        September 30,1996  December 31, 1995
                                                        -----------------  -----------------
<S>                                                      <C>                <C> 
Assets
------

Current Assets:
        Cash and cash equivalents                           $ 54,254,138       $ 34,915,170
        Fees receivable                                       62,974,387         57,351,994
        Short term investments                                11,230,382         11,531,226
        Notes receivable                                       1,712,374          1,230,168
        Other assets - current                                 2,188,430          2,620,639
                                                            ------------       ------------ 
                Total current assets                         132,359,711        107,649,197

Investments in limited partnerships                            4,248,838          3,384,237
Fixed assets, net of accumulated depreciation                 10,201,058         10,743,184
Intangible assets, net of accumulated amortization           216,824,970        243,831,819
Other non current assets                                       9,910,901          3,983,358
                                                            ------------       ------------ 
                Total assets                                $373,545,478       $369,591,795
                                                            ============       ============ 

Liabilities and Partners' Capital
---------------------------------

Current Liabilities:
        Accounts payable, accrued expenses and
           other current liabilities                        $ 29,532,567       $ 16,040,212
        Accrued compensation                                  38,577,538         21,246,685
                                                            ------------       ------------ 
                Total current liabilities                     68,110,105         37,286,897

Other non current liabilities                                    692,023            748,265
                                                            ------------       ------------ 
                Total liabilities                             68,802,128         38,035,162
                                                            ------------       ------------ 

Partners' Capital:
        General Partner (800,000 units issued
           and outstanding)                                    3,099,334          3,456,973
        Class A Limited Partners (40,146,155 and      
           40,121,155 units issued and outstanding    
           at September 30, 1996 and                  
           December 31, 1995, respectively)                  211,058,679        228,465,440
        Class B Limited Partners (32,960,826          
           units issued and outstanding)                     102,436,542        114,806,204
        Unamortized compensation                             (11,851,205)       (15,171,984)
                                                            ------------       ------------  
                Total Partners' Capital                      304,743,350        331,556,633
                                                            ------------       ------------  

                Total liabilities and partners'
                  capital                                   $373,545,478       $369,591,795
                                                            ============       ============ 
</TABLE> 

                            See accompanying notes.

                                       3
<PAGE>

                     PIMCO Advisors L.P. and Subsidiaries
                     Consolidated Statements of Operations
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                                      For the nine months ended
                                                               ---------------------------------------
                                                               September 30, 1996   September 30, 1995
                                                               ------------------   ------------------
<S>                                                           <C>                  <C>
Revenues:
    Investment advisory fees:
       Private accounts                                         $156,571,557         $139,066,290
       Proprietary Funds                                          94,575,782           61,083,542
    Distribution and servicing fees                               35,185,219           28,644,034
    Other                                                            828,408              992,336
                                                                ------------         ------------
            Total revenues                                       287,160,966          229,786,202
                                                                ------------         ------------

Expenses:
    Compensation and benefits                                    128,119,778          109,009,197
    Amortization of intangibles, restricted units
     and option plans                                             30,852,315           32,635,932
    Commissions                                                   27,480,251           20,736,108
    General and administrative                                    13,019,473            6,790,103
    Occupancy and equipment                                        6,932,010            6,466,117
    Other                                                         15,423,389           12,063,798
                                                                ------------         ------------
            Total expenses                                       221,827,216          187,701,255
                                                                ------------         ------------
                    Operating income                              65,333,750           42,084,947

    Equity in income of limited partnership                          173,556              155,002
    Other income                                                   2,227,716            2,655,277
                                                                ------------         ------------
                    Income before taxes                           67,735,022           44,895,226
    Provision for taxes                                              833,554              505,378
                                                                -------------        ------------
                    Net income                                  $ 66,901,468         $ 44,389,848
                                                                ============         ============

Net income allocated to:
    General Partner                                             $    770,361         $    645,529
    Class A Limited Partner Units                                 38,651,130           32,334,287
    Class B Limited Partner Units                                 27,479,977           11,410,032
                                                                ------------         ------------
                    Total                                       $ 66,901,468         $ 44,389,848
                                                                ============         ============


Net income per unit:
    General Partner and Class A Limited Partner unit            $        0.96        $       0.81
                                                                =============        ============
    Class B Limited Partner unit                                $        0.76        $       0.31
                                                                =============        ============

Cash distributions paid per unit:
    General Partner and Class A Limited Partner unit            $       1.410        $      1.179
                                                                =============        ============
    Class B Limited Partner unit                                $       1.209        $      0.414
                                                                =============        ============
</TABLE>


                            See accompanying notes

                                       4
<PAGE>

                     PIMCO Advisors L.P. and Subsidiaries
                     Consolidated Statements of Operations
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                                     For the three months ended
                                                               --------------------------------------
                                                               September 30, 1996  September 30, 1995
                                                               ------------------  ------------------
<S>                                                           <C>                  <C> 
Revenues:
    Investment advisory fees:
       Private accounts                                          $52,889,341         $47,932,243
       Proprietary Funds                                          31,860,003          23,871,658
    Distribution and servicing fees                               12,121,557          11,088,648
    Other                                                            228,086             310,260
                                                                 -----------         -----------
            Total revenues                                        97,098,987          83,202,809
                                                                 -----------         -----------

Expenses:
    Compensation and benefits                                     43,176,174          38,764,094
    Amortization of intangibles, restricted units
     and option plans                                             10,319,085          11,366,016
    Commissions                                                    9,127,681           7,689,152
    General and administrative                                     4,058,746           2,121,240
    Occupancy and equipment                                        2,305,601           2,230,259
    Other                                                          5,164,611           4,618,929
                                                                 -----------         -----------
            Total expenses                                        74,151,898          66,789,690
                                                                 -----------         -----------
                    Operating income                              22,947,089          16,413,119

    Equity in income of limited partnership                           82,005              57,149
    Other income                                                     939,380             934,272
                                                                 -----------         -----------
                    Income before taxes                           23,968,474          17,404,540
    Provision for taxes                                              238,035             263,384
                                                                 -----------         -----------
                    Net income                                   $23,730,439         $17,141,156
                                                                 ===========         ===========

Net income allocated to:
    General Partner                                              $   262,036         $   231,969
    Class A Limited Partner Units                                 13,149,665          11,633,599
    Class B Limited Partner Units                                 10,318,738           5,275,588
                                                                 -----------         -----------
                    Total                                        $23,730,439         $17,141,156
                                                                 ===========         ===========


Net income per unit
    General Partner and Class A Limited Partner unit             $      0.32         $      0.29
                                                                 ===========         ===========
    Class B Limited Partner unit                                 $      0.28         $      0.14
                                                                 ===========         ===========

Cash distributions paid per unit:
    General Partner and Class A Limited Partner unit             $     0.470         $     0.470
                                                                 ===========         ===========
    Class B Limited Partner unit                                 $     0.447         $     0.199
                                                                 ===========         ===========
</TABLE> 


                            See accompanying notes.


                                       5
<PAGE>

                     PIMCO Advisors L.P. and Subsidiaries
                     Consolidated Statements of Cash Flows
                                  (Unaudited)
<TABLE>
<CAPTION>
                                                                    For the nine months ended
                                                             ---------------------------------------
                                                             September 30, 1996   September 30, 1995
                                                             ------------------   ------------------
<S>                                                         <C>                  <C> 
Cash flows from operating activities:
  Net income                                                   $ 66,901,468        $ 44,389,848
  Adjustments to reconcile net income to net cash
   provided by operating activities:
    Depreciation, amortization, restricted unit
     and option plans                                            33,398,649          34,730,364
    Equity in income of limited partnership                        (173,556)           (155,002)
    Unrealized loss (gain) on investments                           150,348             (95,647)
    Change in operating assets and liabilities:
       Fees receivable                                           (5,622,393)        (23,130,978)
       Other assets                                              (5,495,334)         (1,849,819)
       Accounts payable, accrued expenses
        and other current liabilities                            13,492,355          (2,812,318)
       Accrued compensation                                      17,330,853          19,566,507
       Other liabilities                                            (56,243)           (747,410)
    Other                                                           (43,687)             12,593
                                                               ------------        ------------
        Net cash provided by operating activities               119,882,460          69,908,138
                                                               ------------        ------------

Cash flows from investing activities:
  Purchases of fixed assets                                      (2,394,268)         (4,702,671)
  Proceeds from sale of fixed assets                                621,387             269,275
  Notes receivable advances                                        (676,737)           (265,709)
  Sale of securities                                                266,343         (10,067,765)
  Investments in limited partnerships                              (800,000)           (897,728)
                                                               ------------        ------------
       Net cash used in investing activities                     (2,983,275)        (15,664,598)
                                                               ------------        ------------

Cash flows from financing activities:
  Cash distributions paid                                       (97,560,217)        (61,843,002)
  Proceeds from options exercised                                         -             374,921
                                                               ------------        ------------
       Net cash used in financing activities                    (97,560,217)        (61,468,081)
                                                               ------------        ------------

Net increase in cash and cash equivalents                        19,338,968          (7,224,541)

Cash and cash equivalents, beginning of period                   34,915,170          55,003,751
                                                               ------------        ------------
Cash and cash equivalents, end of period                       $ 54,254,138        $ 47,779,210
                                                               ============        ============


Supplemental disclosures:
  Taxes paid                                                   $    356,232         $   383,310
                                                               ------------        ------------

</TABLE> 

                            See accompanying notes.


                                       6
<PAGE>
 
                              PIMCO ADVISORS L.P.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)

1)   The condensed consolidated financial statements included herein have been
prepared without audit in accordance with the instructions to Form 10-Q pursuant
to the rules and regulations of the Securities and Exchange Commission. Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such rules and regulations. In the opinion of
PIMCO Partners, G.P., the General Partner, all adjustments, consisting only of
normal recurring adjustments, necessary for a fair statement of (a) the
financial condition at September 30, 1996 and December 31, 1995, (b) the results
of operations for the nine- and three-month periods ended September 30, 1996 and
1995, and (c) the cash flows for the nine-month periods ended September 30, 1996
and 1995, for PIMCO Advisors L.P. ("PA") have been made. It is suggested that
these unaudited condensed consolidated financial statements be read in
conjunction with the consolidated financial statements and notes included in
PA's Annual Report on Form 10-K for the year ended December 31, 1995. Certain
reclassifications have been made to conform the prior period presentation to the
current period presentation. These interim results may not be indicative of the
results which may occur in the future. (See Item 2 - Management's Discussion and
Analysis of Financial Condition and Results of Operations - Results of
Operations).

2)   Earnings per unit are computed under the two-class method and are based on
the weighted average number of units outstanding, assuming the exercise of
dilutive unit options. See Exhibit 11 for the computation of the weighted
average number of units outstanding during the periods.

     Distributions on the units outstanding are paid quarterly in arrears to
unitholders of record as of the thirtieth day of the first month following each
quarter-end.

3)   In October 1995, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards (SFAS) N0. 123, "Accounting for Stock-Based
Compensation", which will be effective for the Company beginning January 1,
1996. SFAS No. 123 requires expanded disclosures of stock-based compensation
arrangements with employees and encourages (but does not require) compensation
cost to be measured based on the fair value of the equity instrument awarded.
Companies are permitted, however, to continue to apply APB Opinion No. 25, which
recognizes compensation cost based on the intrinsic value of the equity
instrument awarded. PA will continue to apply APB Opinion No. 25 to its unit
based compensation awards to employees and will disclose the required pro forma
effect on net income and earnings per unit in the annual financial statements.

                                       7
<PAGE>
 
ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

          PIMCO Advisors L.P. and subsidiaries ("PA") are primarily involved in
investment advisory services. The investment advisor subsidiaries are as
follows:

              Pacific Investment Management Company ("Pacific Investment
              Management") and its wholly owned subsidiary, StocksPLUS
              Management, Inc. ("StocksPLUS"), manages primarily fixed income
              investments, with approximately $83.2 billion in assets under
              management;

              Columbus Circle Investors ("CCI") and its wholly owned subsidiary,
              Columbus Circle Trust Company ("CCTC"), manages primarily equity
              and equity related investments, with approximately $14.1 billion
              in assets under management;

              Cadence Capital Management ("Cadence") manages equity and equity
              related investments, with approximately $3.0 billion in assets
              under management;

              Parametric Portfolio Associates ("Parametric"), manages equity and
              equity related investments, with approximately $1.8 billion in
              assets under management;

              NFJ Investment Group ("NFJ"), manages equity and equity related
              investments, with approximately $1.7 billion in assets under
              management; and

              Blairlogie Capital Management ("Blairlogie"), manages equity and
              equity related investments, with approximately $673 million in
              assets under management.

The subsidiaries are each a registered investment advisor and collectively they
provide a broad array of investment management and advisory services for
clients, using separate and distinct investment management styles.

In addition to the investment management subsidiaries, PA operates a wholly-
owned distributor, PIMCO Advisors Distribution Company ("PADCo") and sponsors
two mutual fund families: PIMCO Funds (funds for institutional and
401(k)/defined contribution investors) and PIMCO Advisors Funds (retail funds
and the Cash Accumulation Trust).

The Trustees of the the above mutual fund trusts have approved a plan to combine
the fund groups into a single mutual fund complex, the PIMCO Funds. The
restructuring is subject to shareholder approvals and other conditions. It is
expected to be effective in January 1997. The combination is not expected to
have a material impact on PA's results of operations.

RESULTS OF OPERATIONS FOR 1996 COMPARED TO 1995

PA derives substantially all its revenues and net income from advisory fees for
investment management services provided to its institutional and individual
clients and advisory, distribution and servicing fees for services provided to
its two proprietary families of mutual funds ("Proprietary Funds").

Generally, such fees are determined based upon a percentage of client assets
under management and are billed quarterly to institutional clients, either in
advance or arrears, depending on the agreement with the client, and monthly in
arrears to Proprietary Funds. Revenues are determined in large part based upon
the level of assets under management; which itself is dependent upon factors
including market conditions, client decisions to add or withdraw assets from
PA's management and from PA's ability to attract new clients. In addition, PA
has certain accounts which are subject to performance based fee schedules
wherein performance relative to the S&P 500 Index or other benchmarks over a
particular time period can result in additional fees. Such performance based
fees can have a significant effect on revenues, and provide an opportunity to
earn higher fees (as well as lower) than could be obtained under fee
arrangements based solely on a percentage of assets under management.

PA's consolidated 1996 third quarter revenues, including those of its wholly-
owned distributor, PADCo, were $97.1 million compared to $83.2 million in the
third quarter of 1995, up $13.9 million. Advisory revenues were $84.7 million in
the third quarter of 1996 compared to $71.8 million for the same period in 1995,
up $12.9 million. For the nine months ended September 30, 1996 PA's consolidated
revenues were $287.2 million compared to $229.8 milllion in 1995. Revenues at
the distributor increased to $39.7 million in 1996 from $29.6 million in 1995.
Advisory revenue increases resulted from both the commitment 

                                       8
<PAGE>
 
of new assets by institutional clients and from market appreciation. These
revenues included performance based fees, which amounted to $4.9 million during
the third quarter of 1996 as compared to $4.9 million during the same period in
1995. For the nine months ended September 30, 1996 performance fees increased to
$16.3 million, from $10.3 million in the comparable period of 1995. The increase
in performance based fees occurred both in a product line that seeks to
outperform the S&P 500 Index, and selected fixed income accounts. Increases at
the distributor relate to higher levels of sales and qualifying assets.
 
Revenues by operating entity were as follows:
<TABLE>
<CAPTION>
                                       Three Months Ended               Nine Months Ended
                                          September 30,                   September 30,
                                        1996        1995                1996         1995
                                       -------------------             --------------------         
                                          (In millions)                     (In millions)
 
<S>                                    <C>           <C>               <C>          <C>
Pacific Investment Management           $54.9        $45.6              $162.1      $126.1
CCI                                      15.5         13.9                47.2        38.7
Cadence                                   4.5          4.0                13.0        10.5
Parametric                                0.9          1.0                 2.6         2.9
NFJ                                       1.8          1.5                 5.4         4.4
PADCo                                    13.3         11.4                39.7        29.6
Other (1)                                 6.2          5.8                17.2        17.6
                                        -----        -----              ------      ------
                                        $97.1        $83.2              $287.2      $229.8
                                        =====        =====              ======      ======
 
</TABLE>


(1)  Includes PA's Institutional Services (formerly PFAMCo) and Mutual Funds
     divisions and Blairlogie.

Compensation and benefits in the third quarter of 1996 of $43.2 million were
$4.4 million higher than the same period in 1995. For the nine-month period,
this cost category increased from $109.0 million in 1995 to $128.1 million in
1996. These increases reflect additional staffing at both Pacific Investment
Management and CCI, as well as higher profit sharing expenses (which are based
on profits of each of the investment advisor subsidiaries).

Commission expenses, incurred by PADCo related to sales and servicing of retail
mutual funds, increased $1.4 million to $9.1 million in the third quarter of
1996 compared to the same period a year ago, and increased $6.8 million to $27.5
million for the first nine months of 1996 compared to the same period in 1995,
reflecting higher trail commissions due to an increased level of qualifying
assets, as well as increased "up front" commissions due to higher current sales
levels.

General and administrative expenses amounted to $4.1 million during the third
quarter 1996, an increase of $2.0 million over the same period a year ago. This
cost category increased by $6.2 million to $13.0 million for the first nine
months of 1996 compared to the same period in 1995. These increases can be
primarily attributed to the conversion of Pacific Investment Management's
institutional fund family to a fixed administrative fee basis resulting in
increases to this cost category for expenses previously borne directly by the
funds. This change was effective October 1, 1995. There is a corresponding
increase in revenues related to this conversion. These incremental costs account
for substantially all of this increase.

Other expenses in the third quarter of 1996 increased by $0.6 million to $5.2
million from the same period in 1995. Such costs for the first nine months of
1996 increased $3.3 million to $15.4 million compared to the same period in
1995. The rise in both periods is principally due to increases in marketing and
promotional costs and professional fees, as well as reductions in reimbursement
agreements with Pacific Mutual Life Insurance Company resulting from certain
subsidiaries having approached or reached profitability.

Net income per unit is computed under the two-class method which allocates net
income to Class A and Class B Limited Partner units in proportion to the
Operating Profit Available for Distribution for each class. Operating Profit
Available for Distribution is defined by PA's partnership agreement and is
computed as the sum of net income plus non-cash charges from the amortization of
intangible assets, non-cash compensation expenses arising from option and
restricted unit plans and losses of any subsidiary which is not a flow-through
entity for tax purposes. Class A Limited Partner and General Partner units are
entitled to a priority distribution of $1.88 per unit per year until December
31, 1997. Because of this, the amount of Operating Profit Available for

                                       9
<PAGE>
 
Distribution allocated to such units is currently greater than the amount
allocated to Class B Limited Partner units. As a result, the net income
allocated per Class A Limited Partner and General Partner units is currently
greater than the net income allocated per Class B Limited Partner unit. Due to
the priority distribution, any dilution to net income per unit from the assumed
exercise of unit options is currently applied entirely to Class B Limited
Partner units.


CAPITAL RESOURCES AND LIQUIDITY

PA's business has not historically been capital intensive. In general, working
capital requirements had been satisfied out of operating cash flow or short-term
borrowings. PA will make quarterly profit-sharing payments and distributions to
its unitholders. PA may need to finance profit-sharing payments using short-term
borrowings.

PA had approximately $65.5 million of cash and cash equivalents and short-term
investments at September 30, 1996 compared to approximately $46.5 million at
December 31, 1995. PA's liquidity not otherwise used for quarterly distributions
will be used for general purposes including profit-sharing payments and for
brokers' commissions on sales of mutual fund shares distributed without a front-
end sales load. PA believes that the level of such commissions may increase in
the future due to the introduction of new products and mutual fund pricing
structures which may require use of an alternate financing source other than the
operating cash flow.

The Partnership distributes substantially all of its "Operating Profit Available
for Distribution", after appropriate reserves, to its partners. Distributions
are paid quarterly, in arrears, on the units outstanding to unitholders of
record on the thirtieth day of the first month following each quarter-end.
During the first nine months of 1996, the Partnership distributed $1.41 per
Class A Limited Partner and General Partner unit and $1.209 per Class B Limited
Partner unit. These distributions related to the fourth quarter of 1995 and
first two quarters of 1996's earnings. The Partnership declared a third quarter
distribution of $0.47 per Class A Limited Partner and General Partner unit
payable to holders of record on October 30, 1996. The payment date for this
distribution is November 14, 1996. The Partnership also declared a third quarter
distribution of $0.449 per Class B Limited Partner unit payable to holders of
record on October 30, 1996. The payment date for this distribution is November
29, 1996.

PA currently has no long-term debt. In April 1996, the Partnership obtained a
$25 million, four year revolving line of credit for working capital purposes.
This facility was not utilized during the period.

ECONOMIC FACTORS

The general economy including interest rates, inflation and client responses to
economic factors will affect, to some degree, the operations of PA. As a
significant portion of assets under management are fixed income assets,
fluctuations in interest rates could have a material impact on the operations of
PA. PA's advisory business is generally not capital intensive and therefore any
effect of inflation, other than on interest rates, is not expected to have a
significant impact on its operations or financial condition. Client responses to
the economy, including decisions as to the amount of assets deposited may also
impact the operations of PA. Any resulting revenue fluctuations may or may not
be recoverable in the pricing of services offered by PA.

                                       10
<PAGE>
 
PART II:  OTHER INFORMATION

Item 5.  Other Information

         The Equity Board has approved a Deferred Compensation Plan to be
         implemented in December 1996 or January 1997 and a Unit Incentive Plan,
         to be implemented upon ratification by the unitholders. The Deferred
         Compensation Plan will allow eligible employees to acquire Partnership
         units through a trust at a discount from the current market price
         utilizing deferred compensation. The Unit Incentive Plan will expand
         the number of units available for grant as options and/or restricted
         units by 4.4 million, to a total of 10 million units.

Item 6. Exhibits and Reports on Form 8-K

     (a)  Exhibits

     11   Computations of Net Income Per Unit.

     27   Financial Data Schedule.

     (b)  Reports on Form 8-K

               A report on Form 8-K was filed on July 31, 1996 disclosing a
               change in the registrant's certifying accountant.

                                       11
<PAGE>
 
                                   SIGNATURES


     Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                                       PIMCO Advisors L.P.


                                       By    /s/ William D. Cvengros
                                             -----------------------

                                             William D. Cvengros
                                             Chief Executive Officer


                                       By    /s/  Robert M. Fitzgerald
                                             ------------------------

                                             Robert M. Fitzgerald
                                             Principal Accounting Officer



November 13, 1996

                                       12