Asset Allocation Funds
With thousands of mutual funds on the market today, creating a portfolio of investments that fits your risk tolerance and addresses your investment needs can be challenging. Portfolio Optimization Funds make this task easier for you by offering one-step diversification managed by a dedicated multi-asset class solutions team. The funds range in investment style from conservative to aggressive-growth to help match your risk tolerance and investment goals.
Portfolio Optimization Funds make diversification easier for you by offering:
Each Portfolio Optimization Fund is a fund-of-funds diversified among multiple asset classes, providing you with a core asset allocation solution to help meet your financial goals.
A Dedicated Team that Manages Multi-Asset Class Solutions
Pacific Life Fund Advisors' investment approach uses three fundamental disciplines:
- Asset allocation
- Manager research
- Investment risk management
Target-Risk Funds to Fit Your Needs
Portfolio Optimization Funds range in investment style from conservative to aggressive-growth to help match your risk tolerance and investment goals.
Portfolio Optimization Funds Client Brochure 2Q 2016
Includes fact sheets and an overview of the portfolio management team's investment approach that uses asset allocation, manager research and investment risk management.
Five Target-Risk Funds
Pacific Funds offers five Portfolio Optimization Funds, allowing you to match the appropriate fund to your financial objectives, risk tolerance, and time horizon. Each fund is structured as a fund-of-funds (a mutual fund that invests in other mutual funds) that has been diversified to achieve a specific target-risk level using a strategic mix of multiple asset classes.
Currently, each fund includes up to 22 individual asset classes, which spreads risk across various markets. To see fund holdings, please refer to the fund fact sheets.
Asset allocation and diversification do not guarantee future results, ensure a profit or protect against loss. A fund-of-funds is subject to asset allocation risk. Although diversification among asset classes can help reduce volatility over the long term, this assumes that asset classes do not move in tandem and that positive returns in one or more asset classes will help offset negative returns in other asset classes. A fund-of-funds does not guarantee gains and may incur losses and/or experience volatility, particularly during periods of broad market declines. There is also a risk that you could achieve better returns by investing in an individual fund or multiple funds representing a single asset class rather than using asset allocation. 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. Each underlying fund has its own investment goal, strategy, and risk. See the prospectuses for the underlying funds for more information.
Portfolio Optimization Funds refers to Pacific Funds Portfolio Optimization.
DALBAR, Inc., has validated that the Portfolio Optimization Funds meet the requirements to be offered as QDIAs as defined by Employee Retirement Income Security Act of 1974 (ERISA) and associated regulations. Click to view flyer.
Pacific Life Fund Advisors LLC
The asset allocation and specialty funds are managed by Pacific Life Fund Advisors (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, 2016, PLFA managed approximately $37 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 employ diversification. But what is also critical is choosing the correct asset classes in which to diversify, which is known as asset allocation. Asset allocation and diversification do not guarantee future results, ensure a profit, or protect against loss.
Pacific Life Fund Advisors (PLFA) applies an investment approach using three fundamental disciplines: asset allocation, manager research, investment risk management. Using these disciplines, PLFA determines each Portfolio Optimization Fund’s overall asset allocation strategy and the appropriate underlying funds.
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.
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.
Asset Management (as of 6/30/16)
The underlying funds in the Portfolio Optimization Funds are managed by some of the most well-recognized management firms in the industry. All management firms may not be represented in all Portfolio Optimization Funds.
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.
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