Pacific FundsSM Core Income

Class AClass CAdvisor Class
TickerFund NumberTickerFund NumberTickerFund Number
PLIAX106PLNCX306PLIDX006

Pacific Funds Core Income is a mutual fund:

  • Designed for Income: Constructed to seek steady streams of higher income.
  • With Greater Flexibility: Ability for the Fund to respond to market and interest-rate movements.
  • Based on Experience: A portfolio management team that specializes in fixed-income asset management based on a foundation of corporate credit research.

Fund Snapshot

The Fund will generally invest its assets in:

  • Investment-Grade Corporate Bonds: Typically provide higher income than government bonds.
  • Investment-Grade Non-U.S. Bonds:1 Often capture higher income than investment-grade U.S. bonds of similar credit quality and maturity.

The Fund may enhance income by investing in other types of instruments, such as:

  • High-Yield Corporate Bonds: Typically offer higher income than investment-grade bonds, although with greater risk.
  • Senior Floating-Rate Loans: Can serve as both an income driver and a hedge against rising interest rates.

 

Performance (as of 3/31/18) 

  Total Returns (%) Annualized Total Returns (%) 
  3-Month YTD 1-Year 3-Year 5-Year Since Fund Inception
12/31/10
Class A—NAV –1.51 –1.51 2.05 1.66 2.28 4.08
Class A—MOP2 –5.67 –5.67 –2.32 0.20 1.40 3.47
Class C—NAV3 –1.69 –1.69 1.38 0.92 1.52 3.31
Class C—MOP3 –2.67 –2.67 0.38 0.92 1.52 3.31
Advisor Class4 –1.44 –1.44 2.45 1.96 2.56 4.29
Bloomberg Barclays U.S. Aggregate Bond Index5 –1.46 –1.46 1.20 1.20 1.82 2.88

Calendar Year-End Returns (%)

  2011 2012 2013 2014 2015 2016 2017
Class A—NAV 7.95 9.48 0.87 4.41 –0.92 4.98 4.81
Class A—MOP2 3.40 4.86 –3.39 –0.06 –5.12 0.56 0.40
Class C—NAV3 7.11 8.72 0.03 3.65 –1.66 4.19 4.12
Class C—MOP3 6.11 7.72 –0.93 2.65 –2.62 3.19 3.12
Advisor Class4 7.95 9.67 1.05 4.67 –0.67 5.24 5.22
Bloomberg Barclays U.S. Aggregate Bond Index5 7.84 4.21 –2.02 5.97 0.55 2.65 3.54

Returns reflect reinvestment of dividends and distributions.

1U.S. dollar-denominated. 2Class A shares at maximum offering price (MOP) reflect the deduction of an up-front 4.25% sales load. 3Class C shares incepted on 6/30/11. Class C shares at MOP reflect the deduction of a 1.00% contingent deferred sales charge (CDSC). 4Advisor Class shares incepted on 6/29/12. Performance shown prior to these dates is hypothetical and is that of Class I shares (12/31/10 inception date), restated to reflect applicable service and/or 12b-1 fees. Advisor Class shares are sold at net asset value (NAV) without an initial sales charge and do not include a CDSC. Performance reflects any applicable fee waivers and expense reimbursements. If a sales charge had been deducted, the results would have been lower. Performance reflects any applicable fee waivers and expense reimbursements. 5Composed of investment-grade U.S. government and corporate bonds, mortgage pass-through securities, and asset-backed securities.

Indexes are unmanaged and cannot be invested in directly. Further, they hold no cash and incur no expenses.

Yield (as of 3/31/18) Advisor Class
30-Day SEC Yield6 3.36%

Without fee waivers and expense reimbursements, the 30-Day SEC Yield is 3.03%.

6The 30-Day SEC Yield represents the net investment income earned over the 30-day period ending on the above date and includes any fee waivers and expense reimbursements. It is an annualized rate calculated under a methodology prescribed by the Securities and Exchange Commission (SEC). Yields for other share classes will vary.

Fund Composition (as of 3/31/18)

Asset Allocation (%)
Government & Agency Bonds
10.95
Securitized 22.12
Investment-Grade Corporate Bonds 41.71
Floating-Rate Loans
17.61
High-Yield Bonds 7.98
Other 0.24
Cash -0.61
Maturity Schedule (%)
Less than 1 year 1.35
1–3 years
10.34
3–5 years
17.79
5–7 years
25.26
7–10 years
28.23
10–20 years
5.04
More than 20 years
11.99
Credit Quality Allocation (%)
AAA 27.61
AA
9.00
A
7.98
BBB
32.75
BB
13.23
B and Below
9.43
 N/R 0.00

Pacific Asset Management (PAM) provides credit-quality ratings, which are received on underlying securities of the Fund from major rating agencies—S&P®, Moody’s, and/or Fitch. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). When the rating agencies rate a security differently, PAM uses the higher rating. Below investment grade is represented by a rating of BB and below. PAM converts all ratings to the equivalent S&P major rating category for purposes of the category shown. Ratings and portfolio credit quality may change over time.

Distributions (Advisor Class) Per Share Amount
January 2018 0.0251
February 2018 0.0249
March 2018 0.0261
Characteristics
Duration 5.07 years
Weighted Average Maturity
8.90 years
Weighted Average Price
99.50
Number of Issues
258

The weighted average price includes bonds and floating-rate loans.

Top-10 Holdings Maturity Weight (%)
Morgan Stanley 5.0%  11/24/25 1.14
Goldman Sachs Group, Inc. 3.5%  11/16/26 1.12
Ford Credit Auto Owner Trust 3.19%  1/15/25 0.93
Altice US Finance I Corp 7/28/25 0.92
Citibank Credit Card Issuance Trust 2017 1.78%  5/14/27 0.87
Andeavor Logistics LP 5.25%  1/15/25 0.87
Ford Credit Auto Owner Trust 2017 2.36%  9/15/22 0.84
Reynolds Group Holdings Inc 2/6/23 0.79
FNMA 1.875%  9/18/18 0.78
FMCC 1.25%  10/2/19 0.78
Total   9.03

 

Top-10 Country Allocations (%)
United States 89.16 China 0.57
Canada 3.87 Chile 0.52
Mexico 1.95 South Korea 0.41
Brazil 1.32 Israel 0.31
United Kingdom
1.13 Switzerland 0.28

Top-10 country allocations are calculated based on the country of risk.

 

About Risk

All investing involves risks including the possible loss of the principal amount invested. Debt securities with longer durations or fixed interest rates tend to be more sensitive to changes in interest rates, making them generally more volatile than debt securities with shorter durations or floating or adjustable interest rates. The Fund is subject to liquidity risk (the risk that an investment may be difficult to purchase and sell within a reasonable amount of time at approximately the price the Fund has valued the investment) and credit risk (the risk an issuer may be unable or unwilling to meet its financial obligations, risking default). Floating-rate loans (usually rated below investment grade) and high-yield/high-risk bonds ("junk bonds") have greater risk of default than higher-rated securities/higher-quality bonds that may have a lower yield. Interest rates and bond prices have an inverse relationship. The Fund is also subject to foreign-markets risk.

 

Investment Management

Portfolio Managers (since inception): Pacific Asset Management

David Weismiller, CFA: Managing Director and Lead Portfolio Manager; 18 years of investment experience

Michael Marzouk, CFA: Managing Director; 18 years of investment experience

Brian M. Robertson, CFA: Managing Director; 12 years of investment experience

Investment Adviser

Pacific Life Fund Advisors LLC

Fund Information (as of 3/31/18)

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.

Duration is often used to measure a bond’s or fund’s sensitivity to interest rates. The longer a fund’s duration, the more sensitive it is to interest-rate risk. The shorter a fund’s duration, the less sensitive it is to interest-rate risk. Maturity of a debt instrument, however, refers to the specific period of time until final payment (principal and any applicable interest) is due.

Pacific Funds and Pacific Asset Management (PAM) are registered service marks of Pacific Life Insurance Company ("Pacific Life"). S&P is a registered trademark of Standard & Poor’s Financial Services LLC. All third party trademarks referenced by Pacific Life, such as S&P, belong to their respective owners. References of third party trademarks do not indicate or signify any relationship, sponsorship or endorsement between Pacific Life and the owners of referenced trademarks.

All share classes may not be available at all firms, and not all investors may be eligible for all share classes.

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.