Pacific FundsSM High Income

Class AClass CAdvisor Class
TickerFund NumberTickerFund NumberTickerFund Number
PLAHX112PLCHX312PLHYX012

Pacific Funds High Income is a mutual fund:

  • Designed for Income: Constructed to seek steady streams of higher income.
  • Focused on High-Yield Bonds: An asset class offering an attractive risk/return profile.
  • Based on Experience: A portfolio management team that specializes in fixed-income asset management based on a foundation of corporate credit research.

 

Fund Snapshot

Pacific Funds High Income seeks to generate higher levels of income. The Fund does this primarily through investments in high-yield corporate bonds, which typically generate higher levels of income than most investment-grade instruments.

 

Performance (as of 3/31/18) 

  Total Returns (%) Annualized Total Returns (%) 
  3-Month YTD 1-Year 3-Year 5-Year Since Fund Inception
12/19/11
Class A—NAV1 –0.87 –0.87 4.66 4.32 3.97 6.49
Class A—MOP1 –5.06 –5.06 0.18 2.81 3.06 5.76
Class C—NAV1 –1.03 –1.03 3.84 3.54 3.18 5.71
Class C—MOP1 –2.02 –2.02 2.84 3.54 3.18 5.71
Advisor Class1 –0.71 –0.71 4.91 4.58 4.21 6.73
Bloomberg Barclays U.S. High-Yield 2% Issuer Capped Bond Index2 –0.86 –0.86 3.78 5.18 5.00 7.07

Calendar Year-End Returns (%)

  2012 2013 2014 2015 2016 2017
Class A—NAV1 17.23 7.54 –0.24 –5.76  14.87 8.38
Class A—MOP1 12.24 2.95 –4.47 –9.77  10.04 3.77
Class C—NAV1 16.38 6.80 –0.96 –6.38  13.92 7.53
Class C—MOP1 15.38 5.80 –1.90 –7.28  12.92 6.53
Advisor Class1 17.35 7.79 0.02 –5.52  15.15 8.54
Bloomberg Barclays U.S. High-Yield 2% Issuer Capped Bond Index2 15.78 7.44 2.46 –4.43  17.13 7.50

Returns reflect investments of dividends and distributions.

1Share class incepted 6/29/12. Performance shown prior to that date is hypothetical and is that of Class I shares (12/19/11 inception date), restated to reflect applicable service and/or 12b-1 fees. Class A shares at maximum offering price (MOP) reflect the deduction of an up-front 4.25% sales load. Class C shares at MOP reflect the deduction of a 1.00% contingent deferred sales charge (CDSC). 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. 2Measures the performance of high-yield bonds with a 2% maximum allocation to any one issuer.

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 Yield3 4.95%

Without fee waivers and expense reimbursements, the 30-Day SEC Yield is 4.53%.

3The 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 (%)
High-Yield Bonds 88.07
Floating-Rate Loans 2.07
Investment-Grade Corporate Bonds 3.26
Government Bonds 0.00
Cash 4.14
Equities 2.46
Maturity Schedule (%)
Less than 1 year 4.14
1-3 years 5.08
3-5 years 19.12
5-7 years 30.33
7-10 years 37.66
10-20 years 1.11
More than 20 years 0.38
Equities 2.18
Credit Quality Allocation (%)
BBB and Above 7.40
BB 36.37
B 38.95
CCC and Below 15.10
N/R 0.00
Equities 2.18

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 0.0448
February 2018 0.0438
March 2018 0.0182
Characteristics
Duration 4.03 years
Weighted Average Maturity 6.04 years
Weighted Average Price 99.60
Number of Issues 222

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

Top-10 Holdings Maturity Weight (%)
Ally Financial Inc. 5.75%  11/20/25 1.75
Sprint Corp. 7.625%  2/15/25 1.71
T-Mobile USA, Inc. 4.5%  2/1/26 1.34
Infor Software Parent, Inc. 7.125%  5/1/21 1.32
Ahern Rentals, Inc. 7.375%  5/15/23 1.29
Transdigm, Inc. 6.5%  7/15/24 1.28
Constellium NV 6.625%  3/1/25 1.25
Neptune Finco Corp. 6.625%  10/15/25 1.24
Clubcorp Holdings, Inc. 8.5%  9/15/25 1.23
HCA, Inc. 4.5%  2/15/27 1.20
Total   13.61

 

Top-10 Industries (%)
Consumer Cyclical 19.86 Basic Industry 6.95
Capital Goods 15.49 Technology 3.00
Energy 14.73 Utility 2.76
Communications 12.93 Other Industrial 2.73
Consumer Non-Cyclical 11.47 Banking 2.32

 

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

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

C. Robert Boyd: Managing Director; 17 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.