Pacific FundsSM Strategic Income

Class AClass CAdvisor Class
TickerFund NumberTickerFund NumberTickerFund Number

Pacific Funds Strategic Income is a mutual fund:

  • Designed for Income: Constructed to seek steady streams of higher income.
  • With a Broad Perspective: Seeks opportunities across a wide range of securities.
  • 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:

  • 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.

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

  • 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.


Performance (as of 12/31/2017)

  Total Returns (%) Annualized Total Returns (%) 
  3-Month YTD 1-Year 3-Year 5-Year Since Fund Inception
Class A—NAV2 1.28 6.59 6.59 4.65 4.57 6.68
Class A—MOP2 -3.02 2.05 2.05 3.16 3.66 5.92
Class C—NAV2 1.11 5.87 5.87 3.91 3.80 5.90
Class C—MOP2 0.11 4.87 4.87 3.91 3.80 5.90
Advisor Class2 1.35 6.85 6.85 4.92 4.83 6.90
Bloomberg Barclays U.S. Aggregate Bond Index3 0.39 3.54 3.54 2.24 2.10 2.43

Calendar Year-End Returns (%)

  2012 2013 2014 2015 2016 2017
Class A—NAV2 17.03 7.27 1.66 –3.14 11.02 6.59
Class A—MOP2 12.02 2.71 –2.67 –7.23 6.30 2.05
Class C—NAV2 16.17 6.44 0.94 –3.77 10.11 5.87
Class C—MOP2 15.17 5.44 –0.03 –4.70 9.11 4.87
Advisor Class2 17.05 7.53 1.93 –2.80 11.19 6.85
Bloomberg Barclays U.S. Aggregate Bond Index3 4.21 –2.02 5.97 0.55 2.65 3.54

Returns reflect reinvestment of dividends and distributions. 

1U.S. dollar-denominated. 2Share 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. 3Composed 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 12/31/17) Advisor Class
30-Day SEC Yield4 3.43%

Without fee waivers and expense reimbursements, the 30-Day SEC Yield is 3.15%.

4The 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 12/31/2017)

Asset Allocation (%)
High-Yield Bonds 35.12
Floating-Rate Loans
Investment-Grade Corporate Bonds 28.51
Securitized 2.12
Government Bonds
Cash 1.98
Equities 4.98
Maturity Schedule (%)
Less than 1 year 2.27
1–3 years
3–5 years
5–7 years
7–10 years
10–20 years
More than 20 years
Equities 4.98
Credit Quality Allocation (%)
AAA 3.34
CCC and Below 6.86
 N/R 1.18
Equities 4.98

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
October 2017 0.0354
November 2017 0.0327
December 2017 0.0375
Duration 3.02 years
Weighted Average Maturity
6.09 years
Weighted Average Price
Number of Issues

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

Top-10 Holdings Maturity Weight (%)
Caesars Resort Collection, LLC 12/23/24 1.03
Sprint Corp. 7.25%  9/15/21 0.97
Coveris Holdings S.A. 7.875%  11/1/19 0.89
Reynolds Group Holdings Inc 2/6/23 0.87
Morgan Stanley 3.591%  7/22/27 0.84
VF Holding Corp. 6/30/23 0.83
Brand Energy and Infrastructure Services, Inc 6/21/24 0.83
USI, Inc. 5/16/24 0.82
Solera, LLC 3/3/23 0.82
1011778 B.C. Unlimited Liability Company 2/17/24 0.82
Total   8.73


Top-10 Country Allocations (%)
United States 83.52 United Kingdom 1.37
Canada 3.11 Mexico 0.92
Switzerland 1.93 Singapore 0.81
Netherlands 1.57 Chile 0.63
Ireland 1.51 Italy 0.61

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

Brian M. Robertson, CFA®: Managing Director and Lead Portfolio Manager; 12 years of investment experience

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

David Weismiller, CFA®: Managing Director; 18 years of investment experience

Investment Adviser

Pacific Life Fund Advisors LLC

Fund Information (as of 12/31/2017)

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.


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.


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.


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