Pacific FundsSM Limited Duration High Income

Class AClass CAdvisor Class
TickerFund NumberTickerFund NumberTickerFund Number
PLLDX115PLLCX315PLLYX015

Effective March 30, 3018, Pacific Funds Limited Duration High Income is closed to new investors and any subsequent investments from existing investors. The Fund is expected to be liquidated on or about June 28, 2018. Please refer to the summary prospectus for details. 

Pacific Funds Limited Duration High Income is a mutual fund:

  • Designed for Income: Constructed to seek steady streams of higher income.
  • With Lower Sensitivity to Interest-Rate Movements: Expects to maintain a duration between zero to three years.
  • 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 Limited Duration High Income seeks to generate high levels of income. The Fund does this primarily through investments in:

  • 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 in exchange for additional credit risk.

 

Performance (as of 3/31/18)

  Total Returns (%)  Annualized Total Returns (%)
  3-Month YTD 1-Year 3-Year Since Fund Inception
7/31/13
Class A—NAV –0.13 –0.13 3.02 2.09 2.09
Class A—MOP1 –3.11 –3.11 -0.05 1.05 1.43
Class C—NAV –0.30 –0.30 2.31 1.36 1.34
Class C—MOP2 –1.29 –1.29 1.32 1.36 1.34
Advisor Class3 –0.19 –0.19 3.28 2.31 2.32
Bloomberg Barclays U.S. 1-5 Year High-Yield Index4 0.41 0.41 4.30 5.05 4.63

Returns reflect reinvestment of dividends and distributions. 

1Class A shares at maximum offering price (MOP) reflect the deduction of an up-front 3.00% sales load. 2Class C shares at MOP reflect the deduction of a 1.00% contingent deferred sales charge (CDSC). 3Advisor 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. 4Covers the universe of fixed-rate, non-investment-grade debt with maturities between one and five years.

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

For performance data current to the most recent month-end, call Pacific Funds at (800) 722-2333, Option 2, or go to www.PacificFunds.com/Performance. Performance data quoted represents past performance, which does not guarantee future results. Current performance may be lower or higher than the performance quoted. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than the original cost.

Yield (as of 3/31/18) Advisor Class
30-Day SEC Yield5 4.42%

Without fee waivers and expense reimbursements, the 30-Day SEC Yield is 3.88%.

5The 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 58.04
Floating-Rate Loans 30.63
Investment-Grade Corporate Bonds 4.87
Government Bonds
0.00
Equities 0.63
Cash 5.83
Maturity Schedule (%)
Less than 1 year 5.83
1-3 years 13.93
3-5 years 29.73
5-7 years 36.78
7-10 years 13.10
More than 10 years
0.00
Equities 0.63
Credit Quality Allocation (%)
BBB and Above 15.61
BB
32.45
B
41.53
CCC and Below 9.78
Equities
0.63

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.

Characteristics
Duration 2.35 years
Weighted Average Maturity 4.74 years
Weighted Average Bond Price 100.78
Weighted Average Floating-Rate Loan Price 97.39
Number of Issues 148
Top-10 Holdings Maturity Weight (%)
US Foods, Inc. 6/27/23 2.09
PetSmart, Inc 3/11/22 1.67
Jaguar Holding Company 8/18/22 1.66
Sprint Corp. 7.25%  9/15/21 1.62
Sealed Air Corporation 4.875%  12/1/22 1.46
Constellium NV 6.625%  3/1/25 1.45
Avolon (US) LLC 3/21/22 1.41
AES Corp 5/24/22 1.41
VF Holding Corp. 6/30/23 1.41
Reddy Ice Corporation 5/1/19 1.37
Total   15.56

 

Top-10 Industries (%)
Consumer Cyclical 18.38 Basic Industry 6.56
Capital Goods 17.32 Technology 4.86
Consumer Non-Cyclical 13.52 Utility 4.06
Communications 12.25 Other Industrial 3.37
Energy 7.78 Insurance 3.07

 

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

Michael Marzouk, CFA: Managing Director; 18 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.