Alternatives

Many investors are looking for funds to add to their portfolios that can increase diversification beyond a traditional mix of equity or fixed-income investments. Pacific Funds offers Pacific Funds Diversified Alternatives with specific investment themes that extend beyond the broad asset allocation or fixed-income categories.


Fund Literature


Pacific Funds Client Resource Guide 1Q 2018
Includes fact sheets and an overview of the portfolio management team's investment approach.
(MFC0641-0318)
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Pacific Life Fund Advisors LLC

The asset allocation and specialty funds are managed by Pacific Life Fund Advisors LLC (PLFA). Established in 2007, Pacific Life Fund Advisors provides multi-asset and balanced allocation solutions through its asset allocation, manager research, and investment risk-management functionalities. PLFA is an SEC-registered investment adviser and a wholly owned subsidiary of Pacific Life Insurance Company (Pacific Life). As of June 30, 2018, PLFA managed approximately $35 billion in total assets.

Our Investment Approach

Diversification is critical, no matter what stage of life you are in. While an investor nearing retirement may have different financial objectives than one just embarking on a career; both should consider employing  diversification. But what is also critical is choosing the correct asset classes in which to diversify, which is known as asset allocation.

PLFA applies an investment approach using three fundamental disciplines: asset allocation, manager research, investment risk management. Using these disciplines, PLFA determines the fund's overall asset allocation strategy and the appropriate underlying funds.

Asset Allocation

An asset class model is developed for each fund that reflects a risk/return profile consistent with the fund's investment goal. The model defines the asset classes, and the percentage of each, to include in the fund.

Manager Research

Underlying fund managers are evaluated using quantitative screening to narrow the list of potential managers. Qualitative due diligence meetings are then conducted with the selected management firms to assess firm stability, performance repeatability, and investment style adherence.

Investment Risk Management

Using the asset class model as a framework, the specific percentage that will be invested into each underlying fund is determined according to the fund's target-risk objectives. Rigorous analysis and stress testing are performed to identify and evaluate fund risks and, if necessary, adjust allocations accordingly.

 

Underlying Fund Managers (as of 6/30/18)

specialty-funds-underlying-fund-managers


The is no guarantee the Fund will achieve its investment objectives.

DOL - Pacific Funds

Pacific Life Insurance Company is the administrator for Pacific Funds. It is not a fiduciary and therefore does not give advice or make recommendations regarding insurance or investment products.

Investors should consider a fund's investment goal, risks, charges, and expenses carefully before investing. The prospectus and/or the applicable summary prospectus contain this and other information about the fund and are available from your financial advisor.  The prospectus and/or summary prospectus should be read carefully before investing.

Nontraditional or alternative investment performance may be correlated with traditional equity and fixed-income investments over short- or longer-term periods, resulting in a lessened diversification effect and increased volatility when included in a portfolio as part of an asset allocation strategy.

Asset allocation and diversification do not guarantee future results, ensure a profit, or protect against loss. Derivatives can be complex instruments that may experience sudden changes in price, and liquidity, may be difficult to value, sell, or unwind and may be leveraged, which can cause very large swings in value. A fund-of-funds is subject to its own expenses along with the expenses of the underlying funds. It is typically exposed to the same risks as the underlying funds in which it invests in proportion to the allocation of assets among those underlying funds, among other risks. Debt securities with longer durations or fixed interest rates are generally more volatile than debt securities with shorter durations or floating or adjustable interest rates. The prospectuses for the underlying funds are available at www.PacificFunds.com.

Third-party trademarks and service marks are the property of their respective owners.

PLFA3

Pacific Life Fund Advisors LLC (PLFA), a wholly owned subsidiary of Pacific Life Insurance Company, is the investment adviser to the Pacific Funds. PLFA also does business under the name Pacific Asset Management and manages certain funds under that name.

PSD2

Mutual funds are offered by Pacific Funds. Pacific Funds are distributed by Pacific Select Distributors, LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company (Newport Beach, CA), and are available through licensed third parties. Pacific Funds refers to Pacific Funds Series Trust.

AM6

No bank guarantee. May lose value. Not FDIC insured.