Pacific FundsSM Diversified Alternatives

Class AClass CAdvisor Class
TickerFund NumberTickerFund NumberTickerFund Number
PLALX147PLCLX347PLDLX047

Pacific Funds Diversified Alternatives Provides:

  • A Simplified Approach to Alternatives Investing: The fund provides exposure to multiple alternative strategies and non-traditional asset classes in one fund.
  • Professional Management and Oversight: An experienced portfolio management team uses a disciplined approach to oversee investment manager selection, asset allocation, and investment risk management.
  • Portfolio Diversification: The addition of alternative asset classes to a portfolio can help improve diversification and may smooth out the overall risk of that fund.

Fund Overview

Investment Goal: Seeks to provide total return.

Investment Strategy: This Fund is a "fund of funds" that seeks to achieve its investment goal by investing in other funds of the Trust (the "Underlying Funds") to gain exposure to a number of different alternative investment strategies or non-traditional asset classes. The Fund seeks to maintain a low to moderate correlation with traditional equity and fixed-income asset classes over long-term periods. Thus, the Fund may complement and/or serve to further diversify an investor's portfolio of traditional debt and equity investments. Although the performance of the Fund is generally expected to have low to moderate correlation with the performance of traditional equity and fixed-income asset classes over long-term periods, the investment adviser to the Fund may make investment decisions that result in the Fund having a higher correlation with the performance of traditional asset classes over short- or long-term periods.

Fund Performance (as of 3/31/2017)

  Total Returns (%) Annualized Total Returns (%)
  3-Month YTD 1-Year 3-Year
Since Fund Inception
12/31/13
Class A—NAV 2.75 2.75 7.28 3.63 3.32
Class A—MOP1 –2.90 -2.90 1.39 1.70 1.54
Class C—NAV 2.57 2.57 6.48 2.86 2.54
Class C—MOP2 1.57 1.57 5.48 2.86 2.54
Advisor Class3 2.85 2.85 7.49 3.87 3.54
Citigroup 1-Month U.S. T-Bill Index4 0.11 0.11 0.27 0.12 0.11

Returns reflect reinvestment of dividends and distributions. Where a sales charge is illustrated, it is applied at the beginning of the period. Index inception existed prior to 12/31/13. Returns shown at net asset value (NAV) have all distributions reinvested. If a sales charge had been deducted, the results would have been lower. Returns shown at maximum offering price (MOP) for Class A and Class C shares reflect payment of the maximum sales charge or contingent deferred sales charge (CDSC).

1Class A at MOP shares reflect the deduction of an up-front 5.50% sales load. 2Class C at MOP shares reflect the deduction of a 1.00% contingent deferred sales charge (CDSC). 3Advisor Class shares are sold at NAV without an initial sales charge and do not include a CDSC. 4Citigroup 1-Month U.S. T-Bill Index is a market value-weighted index of public obligations of the U.S. Treasury with maturities of one month.

Index is 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.

Fund Holdings (as of 3/31/2017)

Underlying Fund (Manager) (%)
PF Currency Strategies Fund
(UBS/MCG)
  24.1
PF Emerging Markets Debt Fund
(Ashmore)
  10.1
PF Emerging Markets Fund
(Oppenheimer)
  7.2
PF Equity Long/Short 
(AQR)
  10.8
diversified-underlying-fund
Underlying Fund (Manager) (%)
Pacific FundsSM Floating Rate Income
(Pacific Asset Management)
  7.9
PF Global Absolute Return 
(Eaton Vance)
  24.8
PF Inflation Managed Fund
(PIMCO)
  5.0
PF International Small-Cap Fund
(QS Investors)
  5.1
PF Real Estate Fund
(Morgan Stanley)
  5.0

Each Underlying Fund has its own investment goal, strategy, and risks and may not be available for individual purchase. The prospectuses for the underlying funds are available at www.PacificFunds.com.

Annual Fund Operating Expenses (%)

  Gross Net
Class A 2.36 1.85
Class C 3.11 2.60
Advisor Class 2.11 1.60

Gross annual operating expenses reflect the total annual operating expenses paid by each fund. Net operating expenses reflect waivers, reductions, reimbursements, and the limitation of certain “Other Expenses.” Gross operating expenses and net operating expenses are sourced from the current prospectus. The investment adviser has agreed to limit certain “Other Expenses” incurred by the Fund that exceed an annual rate of 0.40% through July 31, 2017 for Class A, C, and Advisor Class shares. There is no guarantee that the investment adviser will continue to cap expenses after the expiration date.

Fund Characteristics (as of 3/31/2017)

 
Annual Turnover Ratio* 73%
Total Net Assets ($M)**
$12.9

*Calculated as of 3/31/16 fiscal year-end.
**Net assets of entire fund, including all share classes.

About Risk

As with any mutual fund, the value of the fund’s holdings will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Asset allocation, although intended to provide diversification, does not guarantee future results, ensure a profit, or protect against loss. Better results could be achieved by investing in an individual fund or 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, among other risks. Some of the risks of the underlying funds include, but are not limited to currency risk, floating-rate loan risk, derivatives risk, and interest-rate risk. Currency exposure subjects a portfolio to changes in the rates of exchange between currencies, which may result in increased volatility. Derivatives can be complex instruments that may experience sudden changes in price, and liquidity may be difficult to value, sell, or unwind and may be leveraged, which can cause very large swings in value. 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. Investments in foreign markets are subject to regulatory, political, economic, market and other conditions of those markets, which can make these investments more volatile and less liquid than U.S. investments. Please see the prospectus for a detailed description of these and other risks associated with Pacific Funds Diversified Alternatives.

Investment Management

Portfolio Managers

Howard T. Hirakawa, CFA®
22 years of investment experience

Carleton J. Muench, CFA®
18 years of investment experience

Max Gokhman, CFA®
10 years of investment experience

Samuel S. Park
17 years of investment experience

Investment Adviser
Pacific Life Fund Advisors LLC  

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 investment products. Only an advisor who is also a fiduciary is required to advise if the product purchase and any subsequent action taken with regard to the product are in their client's best interest.

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.

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.