UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANIES
Investment Company Act file number 811-10385
Pacific Life Funds
(Exact name of registrant as specified in charter)
700 Newport Center Drive, P.O. Box 7500
Newport Beach, CA 92660
(Address of principal executive offices) (Zip code)
(Address of principal executive offices) (Zip code)
Robin S. Yonis
Vice President and General Counsel of Pacific Life Funds
Pacific Life Fund Advisors LLC
700 Newport Center Drive, P.O. Box 9000
Newport Beach, CA 92660
(Name and address of agent for service)
Vice President and General Counsel of Pacific Life Funds
Pacific Life Fund Advisors LLC
700 Newport Center Drive, P.O. Box 9000
Newport Beach, CA 92660
(Name and address of agent for service)
Copies to:
Anthony H. Zacharski, Esq.
Dechert LLP
90 State House Square
Hartford, CT 06103
Anthony H. Zacharski, Esq.
Dechert LLP
90 State House Square
Hartford, CT 06103
Registrant’s telephone number, including area code: 949-219-6767
Date of fiscal year end: March 31
Date of reporting period: April 1, 2009 — March 31, 2010
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1).
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TABLE OF CONTENTS
PACIFIC LIFE FUNDS | ||||
Letter to Shareholders | A-1 | |||
Performance Discussion | A-2 | |||
Disclosure of Fund Expenses | B-1 | |||
Schedules of Investments and Notes | C-1 | |||
Financial Statements: | ||||
Statements of Assets and Liabilities | D-1 | |||
Statements of Operations | D-7 | |||
Statements of Changes in Net Assets | D-10 | |||
Statement of Cash Flows | D-16 | |||
Financial Highlights | E-1 | |||
Notes to Financial Statements | F-1 | |||
Report of Independent Registered Public Accounting Firm | F-29 | |||
Trustees and Officers Information | G-1 | |||
Approval of Investment Advisory Agreement and Fund Management Agreements | G-5 | |||
Where to Go for More Information | G-12 |
PACIFIC LIFE FUNDS
Dear Shareholders:
We are pleased to share with you the Pacific Life Funds Annual Report dated March 31, 2010. |
Pacific Life Funds is comprised of 23 separate funds (each individually a “fund” and collectively, the “funds”). Pacific Life Fund Advisors LLC (PLFA), as adviser to the funds, supervises the management of all of the funds and manages six of the funds directly. PLFA also does business under the name “Pacific Asset Management” and manages the PL Money Market Fund under that name. For the other funds, Pacific Life Funds and PLFA have retained other firms to serve as portfolio managers under PLFA’s supervision. The funds and the portfolio managers as of March 31, 2010 are listed below:
Portfolio Manager | Fund | |
Pacific Life Fund Advisors LLC (PLFA) | PL Portfolio Optimization Conservative Fund PL Portfolio Optimization Moderate-Conservative Fund PL Portfolio Optimization Moderate Fund PL Portfolio Optimization Moderate-Aggressive Fund PL Portfolio Optimization Aggressive Fund | |
Pacific Asset Management | PL Money Market Fund | |
Fred Alger Management, Inc. (Alger) | PL Small-Cap Growth Fund | |
AllianceBernstein L.P. (AllianceBernstein) | PL International Value Fund | |
ClearBridge Advisors, LLC (ClearBridge) | PL Large-Cap Value Fund | |
Goldman Sachs Asset Management, L.P. (Goldman Sachs) | PL Short Duration Bond Fund | |
Highland Capital Management, L.P. (Highland Capital) | PL Floating Rate Loan Fund | |
Janus Capital Management LLC (Janus) | PL Growth LT Fund | |
Lazard Asset Management LLC (Lazard) | PL Mid-Cap Equity Fund | |
MFS Investment Management (MFS) | PL International Large-Cap Fund | |
NFJ Investment Group LLC (NFJ) | PL Small-Cap Value Fund | |
OppenheimerFunds, Inc. (Oppenheimer) | PL Main Street® Core Fund PL Emerging Markets Fund | |
Pacific Investment Management Company LLC (PIMCO) | PL Managed Bond Fund PL Inflation Managed Fund | |
UBS Global Asset Management (Americas), Inc. (UBS) | PL Large-Cap Growth Fund | |
Van Kampen | PL Comstock Fund PL Mid-Cap Growth Fund PL Real Estate Fund |
We appreciate your confidence in the Pacific Life Funds and look forward to serving your financial needs in the years to come.
Sincerely,
![]() | ![]() | |
James T. Morris Chairman of the Board Pacific Life Funds | Mary Ann Brown Chief Executive Officer Pacific Life Funds |
A-1
PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION
This report and financial statements contained herein are provided for the general information of investors with beneficial interests in Pacific Life Funds. This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current Pacific Life Funds’ prospectus which contains information about the Pacific Life Funds and each of its funds, including their investment objectives, risks, charges and expenses. You should read the prospectus carefully before investing. There is no assurance that a fund will achieve its investment objective. Each fund is subject to market risk. The value of a fund changes as its asset values go up or down. The value of a fund’s shares will fluctuate, and when redeemed, may be worth more or less than their original cost.
The total return for each fund (including the 7-day yield for the PL Money Market Fund) includes reinvestment of all dividends and capital gain distributions, if any, and does not include deductions of any applicable sales charges. Past performance is not predictive of future performance. Performance figures for each class reflect the deduction of any applicable maximum front-end sales charge at the time of investment and reflect any applicable contingent deferred sales charge that would be deducted upon redemption at the end of the period presented.
The composite benchmarks are composed of up to four broad-based indices for the PL Portfolio Optimization Funds. The percentage amounts of each broad-based index within each composite benchmark are based on each fund’s target asset class allocations in effect during the applicable period. The percentages attributed to a broad-based index within a composite benchmark will change if a fund’s target asset class allocations change.
This report shows you the performance of the funds compared to benchmark indices. Index performance is provided for illustrative and comparative purposes only and does not predict or depict the performance of the funds. Indices are unmanaged, do not incur transaction costs and cannot be purchased directly by investors. Index returns on equity securities include reinvested dividends.
PLFA supervises the management of all of the funds (subject to the review of the Pacific Life Funds’ Board of Trustees) and directly manages the PL Money Market Fund (under the name Pacific Asset Management) and the PL Portfolio Optimization Conservative, PL Portfolio Optimization Moderate-Conservative, PL Portfolio Optimization Moderate, PL Portfolio Optimization Moderate-Aggressive and PL Portfolio Optimization Aggressive Funds. PLFA has written the general market conditions commentary which expresses PLFA’s opinions and view on how the market generally performed as of the date of this report, March 31, 2010.
All views are subject to change at any time based upon market or other conditions, and Pacific Life Funds, its adviser and the portfolio managers disclaim any responsibility to update such views. Any references to “we,” “I,” or “ours” are references to the adviser or portfolio manager. The adviser and portfolio managers may include statements that constitute “forward-looking statements” under the United States (U.S.) securities laws. Forward-looking statements include information concerning possible or assumed future results of the Pacific Life Funds’ investment operations, asset levels, earnings, expenses, industry or market conditions, regulatory developments and other aspects of the Pacific Life Funds’ operations or general economic conditions. In addition, when used in this report, predictive verbs such as “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “projects” and future or conditional verbs such as “will,” “may,” “could,” “should” and “would,” or any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees of performance or economic results. They involve risks, uncertainties and assumptions. Although such statements are based on expectations that the adviser or portfolio manager believes to be reasonable, actual results may differ materially from expectations. Investors must not rely on any forward-looking statements. In connection with any forward-looking statements and any investment in the Pacific Life Funds, investors should carefully consider the investment objectives, policies and risks described in the Pacific Life Funds’ current Prospectus, as supplemented and Statement of Additional Information, as supplemented as filed with the Securities and Exchange Commission (SEC), which may be obtained from the SEC’s website at www.sec.gov.
Market Conditions
The market conditions noted below affected each of the funds during the trailing twelve-month period ended March 31, 2010.
Executive Summary
Over the trailing twelve-month period ended March 31, 2010, financial markets managed to climb from the pitfall as investor sentiments reversed from widespread uncertainty and fear to those that embraced relief and hope. The investment climate throughout the period accommodated the riskier asset classes, and those that suffered during the latest bear market generally flourished. Prior to this period, markets faced the risk of a complete meltdown of the global financial system. Credit and liquidity suddenly evaporated as financial and economic gears stopped working. Corporations responded quickly by cutting expenses and jobs. Unemployment rates surged to the highest level in a quarter of a century and consumer spending plummeted. This sequence of events had fueled expectations of a downward spiral in the previous reporting period.
Since then, systemic risks have been substantially reduced by unprecedented policy actions. The leverage in the system was transferred from the private sector to the public sector as government regulators intervened with its substantial amount of monetary support. By the end of 2009, the government had committed over $10 trillion – more than half of which was offered by the Federal
A-2
PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
Reserve (Fed). Additionally, the Fed eased monetary policy by maintaining the Federal Funds (Fed Funds) rate at a target of 0 to 25 basis points (bps) throughout the trailing twelve-month period. These drastic measures helped investor sentiments reverse expectations of a financial system meltdown to one that anticipated stabilization.
The “Great Recession” is widely believed to have ended in the latter half of 2009. The sentiment of optimism sparked a rally that continued through March 31, 2010. Virtually all major market indices experienced positive returns over the period. The U.S. broad equity market (as represented by the S&P 500 Index) rose 49.77%, and the U.S. fixed income market (as represented by the Barclays Capital U.S. Aggregate Bond Index) gained 7.69%. Over the period, small-capitalization stocks fared better than large-capitalization stocks, value styles generally outpaced growth strategies, and riskier credit quality classes outperformed those of higher quality. Performances were particularly strong for real estate investment trusts (REITs), emerging markets, and high yield bonds. For the trailing twelve-month period, the Financial Times Stock Exchange (FTSE) National Association of Real Estate Investment Trusts (NAREIT) Equity REIT Index surged 106.68%, the Morgan Stanley Capital International (MSCI) Emerging Markets Index jumped 81.08%, and the Barclays Capital U.S. High -Yield 2% Issuer Capped Index rose 55.63%.
Fixed Income
The appetite for risk was clearly evident throughout the credit tiers, as issues with lower credit ratings outperformed those of higher quality. The high yield sector led the fixed income market throughout the period as distorted yield spreads reverted back to more reasonable levels. The strong performance of riskier credits was a common theme among various sectors of the fixed income market.
The increase in mergers & acquisition (M&A) and leveraged buyout (LBO) activity helped fuel the leveraged loan sector in recent quarters. Leveraged lending displayed signs of life heading into 2010, which coincides with the expectation of falling default rates and rising loan repayments in 2010. The rise in lending activity as well as growing interest in distressed opportunities helped the Credit Suisse Leveraged Loan Index gain 41.05% for the trailing period. The structured finance sector, particularly commercial mortgage-backed securities (CMBS), also experienced some recovery. The Barclays Capital CMBS Investment Grade Index and the Barclays Capital Asset-Backed Securities (ABS) Index gained 41.64% and 18.53%, respectively.
In general, non-government sectors outperformed the Treasury sector over the trailing year. The spread compression – caused by sliding yields on non-Treasury issues and rising yields on long-term Treasuries – further illustrates the alleviation of great fears in the market. Corporate spreads have come down to much more reasonable levels after the sharp spike in 2008.
The Fed helped unclog the money market sector with its emergency facilities after the short-term debt market froze in 2008. However, banks and corporations have scaled back their reliance on shorter-maturity issuances since businesses still remain cautious about the economy over the next several quarters. Although short-term rates remained at low levels, companies have instead been issuing longer-term debt to avoid the potential of a sharp rise in short-term rates. Nonetheless, the Fed’s monetary policy has a direct impact on short-term yields. The near zero Fed Funds rate and better yielding opportunities in other sectors left money market performances relatively flat. The BofA Merrill Lynch U.S. 3-Month Treasury Bill Index increased 0.17% for the period.
Domestic Equity
In the domestic equity market, all major S&P 500 Index sectors made positive strides over the trailing twelve-month period. Over the period, financials led the market with an 83.06% gain. Cyclical sectors such as industrials and consumer discretionary followed by gaining 72.82% and 69.80%, respectively. Although the information technology sector led in 2009, the sector lost momentum in the first quarter of 2010. Among sectors that lagged the S&P 500 Index, the telecommunication services and utilities sectors had the weakest gains of 12.22% and 21.01%, respectively.
Small-capitalization companies led the charge over the period. Although large-capitalization companies started to gain strength in the fourth quarter of 2009, they struggled in the first quarter of 2010. Large-capitalization companies tend to generate more revenue from foreign markets than their smaller counterparts. The sovereign debt problems in certain European countries added pressure to U.S. firms with exposure to the region. In terms of style, growth strategies had outpaced value strategies during the earlier phases of the recovery. However, as investors paid closer attention to valuations, a shift toward value stocks became more apparent in 2010.
The REIT market experienced a strong and steady recovery. All sectors of the FTSE NAREIT Equity REITs Index increased more than 50% over the period with the hotel sector having led the pack with an impressive 230.18% gain. Whereas concerns over commercial real estate continued to linger, public REITs were able to access equity and debt capital in this challenging environment, which allowed them to gain flexibility and time. This ability relieved much of the deep concerns that previously burdened the market. However, the overall commercial real estate market still faces obstacles as private real estate participants continue to struggle with debt maturities and insufficient capital sources.
A-3
PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
International Equity
Foreign markets performed well during the recovery, but the pace dwindled toward the end of 2009 and into 2010. The MSCI Europe, Australasia and Far East (EAFE) Index rose 54.44% for the period. Similar to the U.S. equity market, foreign small-capitalization stocks in the MSCI EAFE Index performed better than their larger counterparts over the period. Europe’s debt burdened nations (Portugal, Italy, Greece and Spain) were among the worst performing MSCI countries in the first quarter of 2010.
Emerging markets led the charge over the period. Among the MSCI country indices, Brazil, Russia and India surged more than 100%. Brazil and Russia benefited from the strong recovery in commodity prices. According to the U.S. Energy Information Administration, world oil prices rose from roughly $50 per barrel in April 2009 to approximately $80 per barrel in March 2010, representing approximately a 60% increase. Additionally, prices of metals jumped at a similar pace to oil. The resurgence in commodity prices was largely supported by the robust economic recovery in emerging Asia. The International Monetary Fund (IMF) estimates that developing Asian economies (i.e. China and India) grew 6.5% in 2009. According to IMF’s World Economic Outlook (April 2010), China is expected to grow roughly 10% in 2010 and 2011. Growth in China has been largely supported by the government stimulus on infrastructure spending.
Concluding Remarks
The U.S. economy showed some signs of a modest recovery in recent quarters. Real Gross Domestic Product (inflation-adjusted Gross Domestic Product (GDP)) expanded at an annualized rate of 2.2% in the third quarter and 5.6% in the fourth quarter of 2009. Although the fourth quarter headline GDP number may suggest strong growth, much of it was contributed by the change in the level of inventories. This suggests that the rapid pace in the fourth quarter may not be sustainable throughout 2010. Nevertheless, the decline in U.S. economic growth appears to have bottomed. According to the Fed’s Survey of Professional Forecasters (First Quarter 2010), real GDP is expected to grow at an annualized rate of 2.7% over the next five quarters.
The rebound in financial markets helped business and consumer sentiments improve over the period. Company profit margins have grown throughout the year; however, they have come primarily from cost cutting measures, including job eliminations. Although there have been positive signs, the U.S. economy still faces challenges of high unemployment rates, high levels of national and consumer debt, as well as the overhang with problems in both residential and commercial real estate. Nevertheless, signals indicate the worst may be in the rearview mirror.
Although risk appetite seemed to have returned to the market, investors and businesses generally maintain a cautious outlook for the rest of 2010. Economic fundamentals must continue to stabilize and companies need to generate revenue growth in order to support the recovery. The general consensus suggests that the developed countries still need to jump over some structural hurdles. Although the North American region is expected to experience a modest cyclical recovery, the debt-burdened countries in the Euro area will likely create additional headwinds in the Eastern Hemisphere. Developing countries are anticipated to lead the global recovery, but many have shifted focus on China’s ability to maintain its growth through stimulus programs and contain its potentially high inflationary pressures. Overall, investors may see some challenges ahead, but the outlook has been gradually improving.
PL Portfolio Optimization Funds
The Portfolio Optimization Funds are five, risk-based funds (PL Portfolio Optimization Funds) that commenced operations on December 31, 2003. Each of the PL Portfolio Optimization Funds invests a specified target amount in various funds (Underlying Funds) of the Pacific Life Funds to accomplish the risk/return profile that corresponds to the respective PL Portfolio Optimization Fund. Each PL Portfolio Optimization Fund seeks to optimize returns for a given level of risk (or minimize risk for a given level of return).
Performance
Since the performance of each PL Portfolio Optimization Fund is a composite of the performance of each of the underlying funds in which it invests (which may include bonds, domestic and/or international equities), there is no one, broad-based industry index to use as a comparison to a PL Portfolio Optimization Fund’s performance. Therefore, we have provided information regarding four broad-based indices to use as a comparison to each fund’s performance.
In addition, to assist in performance comparisons, composite benchmarks were constructed for each PL Portfolio Optimization Fund; each is comprised of up to four broad-based indices shown below. The composite benchmarks were constructed with allocations to each asset class that correspond to the target allocations for the PL Portfolio Optimization Funds that were in effect at that time. However, the actual allocation of any PL Portfolio Optimization Fund will naturally vary from these targets as a result of market performance over time. The one-year performance for these broad-based indices is shown in the table on the following page. The underlying funds’ performance listed is net of fund expenses.
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PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
1-Year | ||||
Performance | ||||
Broad-Based Indices | as of 3-31-10 | |||
S&P 500 Index (U.S. Stocks) | 49.77 | % | ||
MSCI EAFE Index (International Stocks) | 54.44 | % | ||
Barclays Capital U.S. Aggregate Bond Index (Fixed Income) | 7.69 | % | ||
BofA Merrill Lynch U.S. 3-Month T-Bill Index (Cash) | 0.17 | % |
It should be noted that the benchmark indices for the underlying funds may differ from the PL Portfolio Optimization Funds’ broad-based indices.
The PL Portfolio Optimization Funds had investments in the following underlying funds, which were primary contributors to performance relative to indices. Not all of the underlying funds were represented in each of the models, and the allocation of each of the funds within the Models did vary:
1-Year | ||||
Performance | ||||
Underlying Funds | as of 3-31-10 | |||
PL Managed Bond ‘A’ (Fixed Income) | 18.68 | % | ||
PL Comstock ‘A’ (U.S. Stocks) | 55.34 | % | ||
PL Inflation Managed ‘A’ (Fixed Income) | 9.68 | % | ||
PL Emerging Markets ‘A’ (International Stocks) | 87.45 | % | ||
PL Mid-Cap Growth ‘A’ (U.S. Stocks) | 70.89 | % |
The PL Portfolio Optimization Funds had investments in the following underlying funds, which were primary detractors to performance relative to indices. Not all of the underlying funds were represented in each of the models, and the allocation of each of the funds within the Models did vary:
1-Year | ||||
Performance | ||||
Underlying Funds | as of 3-31-10 | |||
PL Main Street Core ‘A’ (U.S. Stocks) | 48.57 | % | ||
PL Large-Cap Value ‘A’ (U.S. Stocks) | 43.79 | % | ||
PL Large-Cap Growth ‘A’ (U.S. Stocks) | 41.73 | % | ||
PL Growth LT ‘A’ (U.S. Stocks) | 47.26 | % | ||
PL International Large-Cap ‘A’ (International Stocks) | 52.64 | % |
PL Portfolio Optimization Conservative Fund (managed by Pacific Life Fund Advisors LLC)
Q. How did the fund perform over the year ended March 31, 2010?
A. For the year ended March 31, 2010, the fund’s Class A returned 21.67%, compared to a 14.92% return for the PL Portfolio Optimization Conservative Composite Benchmark. The PL Portfolio Optimization Conservative Composite Benchmark is composed of up to four broad-based indices based on the fund’s target asset class allocation. The broad-based indices applicable during the reporting period had returns of 7.69% for the Barclays Capital U.S. Aggregate Bond Index, 49.77% for the S&P 500 Index, 54.44% for the MSCI EAFE Index, and 0.17% for the BofA Merrill Lynch U.S. 3-Month T-Bill Index.
A-5
PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
The following graph shows the value as of March 31, 2010 of a $10,000 investment made in Class A shares since the fund began operations. For comparison purposes, the performance of the fund’s benchmarks is also shown. Performance data for Class B, C, and R shares will vary due to differences in fees and sales charges.
Performance Comparison
![(PERFORMANCE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-056340/p17732p1773216.gif)
Average Annual Total Returns for the Periods Ended March 31, 2010
PL Portfolio Optimization | ||||||||||||||||
Conservative | Class A | Class B | Class C | Class R | ||||||||||||
1 Year Total Return: | ||||||||||||||||
Without sales charge | 21.67 | % | 21.07 | % | 21.14 | % | 21.53 | % | ||||||||
With maximum sales charge | 15.03 | % | 16.07 | % | 20.14 | % | N/A | |||||||||
Barclays Capital U.S. Aggregate Bond Index | 7.69 | % | ||||||||||||||
S&P 500 Index | 49.77 | % | ||||||||||||||
PL Portfolio Optimization Conservative Composite Benchmark | 14.92 | % | ||||||||||||||
5 Year Total Return: | ||||||||||||||||
Without sales charge | 4.75 | % | 4.10 | % | 4.12 | % | N/A | |||||||||
With maximum sales charge | 3.57 | % | 3.76 | % | 4.12 | % | N/A | |||||||||
Barclays Capital U.S. Aggregate Bond Index | 5.44 | % | ||||||||||||||
S&P 500 Index | 1.92 | % | ||||||||||||||
PL Portfolio Optimization Conservative Composite Benchmark | 4.81 | % | ||||||||||||||
Since Inception (December 31, 2003): | ||||||||||||||||
Without sales charge | 4.32 | % | 3.70 | % | 3.69 | % | 4.64 | % | ||||||||
With maximum sales charge | 3.38 | % | 3.57 | % | 3.69 | % | N/A | |||||||||
Barclays Capital U.S. Aggregate Bond Index | 4.96 | % | ||||||||||||||
S&P 500 Index | 2.87 | % | ||||||||||||||
PL Portfolio Optimization Conservative Composite Benchmark | 4.64 | % |
Performance data shown represents past performance. Investment return and principal value will fluctuate so that shares of the fund when redeemed may be worth more or less than their original cost. Past performance is not predictive of future performance. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Q. Discuss both positive and negative factors that materially affected the fund’s performance during the year, including relevant market conditions, investment strategies and techniques, and particular sectors or securities.
A. The PL Portfolio Optimization Conservative Fund is comprised primarily of a diverse group of fixed income funds with an additional minor allocation to domestic and international equity funds. The fund outperformed its composite benchmark over the trailing twelve-month period. Outperformance was driven by the fixed income allocation within the fund. The domestic equity allocation also slightly contributed to outperformance while an international equity exposure modestly detracted from performance over the period.
The fixed income segment of the fund was a strong contributor to performance. A large weighting in the PL Managed Bond Fund helped drive relative performance, as it outperformed the fixed income component of the composite benchmark (Barclays Capital U.S. Aggregate Bond Index). Underperformance from a short duration allocation was more than offset by exposures to bank loans and treasury inflation protected securities (TIPS). In particular, the PL Floating Rate Loan and PL Inflation Managed Funds generated strong relative performance.
Relative outperformance from domestic equity funds outweighed the modest underperformance from international counterparts. U.S. focused funds like PL Comstock and PL Mid-Cap Equity Funds generated solid outperformance relative to the domestic equity component of the composite benchmark (S&P 500 Index), while the PL International Value and PL International Large-Cap Funds served as a drag relative to the international segment of the fund (MSCI EAFE Index).
PL Portfolio Optimization Moderate-Conservative Fund (managed by Pacific Life Fund Advisors LLC)
Q. How did the fund perform over the year ended March 31, 2010?
A. For the year ended March 31, 2010, the fund’s Class A returned 29.60%, compared to a 23.37% return for the PL Portfolio Optimization Moderate-Conservative Composite Benchmark. The PL Portfolio Optimization Moderate-Conservative Composite Benchmark is composed of up to four broad-based indices based on the fund’s target asset class allocation. The broad-based indices applicable
A-6
PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
during the reporting period had returns of 7.69% for the Barclays Capital U.S. Aggregate Bond Index, 49.77% for the S&P 500 Index and 54.44% for the MSCI EAFE Index.
The following graph shows the value as of March 31, 2010 of a $10,000 investment made in Class A shares since the fund began operations. For comparison purposes, the performance of the funds benchmarks is also shown. Performance data for Class B, C, and R shares will vary due to differences in fees and sales charges.
Performance Comparison
![(PERFORMANCE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-056340/p17732p1773217.gif)
Average Annual Total Returns for the Periods Ended March 31, 2010
PL Portfolio Optimization | ||||||||||||||||
Moderate-Conservative | Class A | Class B | Class C | Class R | ||||||||||||
1 Year Total Return: | ||||||||||||||||
Without sales charge | 29.60 | % | 28.87 | % | 28.87 | % | 29.32 | % | ||||||||
With maximum sales charge | 22.43 | % | 23.87 | % | 27.87 | % | N/A | |||||||||
Barclays Capital U.S. Aggregate Bond Index | 7.69 | % | ||||||||||||||
S&P 500 Index | 49.77 | % | ||||||||||||||
PL Portfolio Optimization Moderate-Conservative Composite Benchmark | 23.37 | % | ||||||||||||||
5 Year Total Return: | ||||||||||||||||
Without sales charge | 4.41 | % | 3.74 | % | 3.76 | % | N/A | |||||||||
With maximum sales charge | 3.23 | % | 3.39 | % | 3.76 | % | N/A | |||||||||
Barclays Capital U.S. Aggregate Bond Index | 5.44 | % | ||||||||||||||
S&P 500 Index | 1.92 | % | ||||||||||||||
PL Portfolio Optimization Moderate-Conservative Composite Benchmark | 4.44 | % | ||||||||||||||
Since Inception (December 31, 2003): | ||||||||||||||||
Without sales charge | 4.28 | % | 3.64 | % | 3.65 | % | 3.92 | % | ||||||||
With maximum sales charge | 3.34 | % | 3.50 | % | 3.65 | % | N/A | |||||||||
Barclays Capital U.S. Aggregate Bond Index | 4.96 | % | ||||||||||||||
S&P 500 Index | 2.87 | % | ||||||||||||||
PL Portfolio Optimization Moderate-Conservative Composite Benchmark | 4.63 | % |
Performance data shown represents past performance. Investment return and principal value will fluctuate so that shares of the fund when redeemed may be worth more or less than their original cost. Past performance is not predictive of future performance. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Q. Discuss both positive and negative factors that materially affected the fund’s performance during the year, including relevant market conditions, investment strategies and techniques, and particular sectors or securities.
A. The PL Portfolio Optimization Moderate-Conservative Fund has just over half of its allocation in a diverse mix of fixed income funds with the remainder in several domestic and international equity funds. The fund outperformed its composite benchmark over the trailing twelve-month period. Outperformance of the fund was driven by fixed income and domestic equity allocations while the international equity exposure slightly detracted from performance over the period.
The fixed income segment of the fund was a strong contributor to performance. A large weighting in the PL Managed Bond Fund helped drive relative performance, as it outperformed the fixed income component of the composite benchmark (Barclays Capital U.S. Aggregate Bond Index). Contributions from bank loans and TIPS helped mute some of the underperformance from a short duration allocation.
The fund’s equity allocation to U.S. companies with small- and mid-sized market capitalizations helped boost performance versus the domestic equity component of the composite benchmark (S&P 500 Index). Specifically, the PL Mid-Cap Equity and PL Mid-Cap Growth Funds all generated strong relative returns. The fund’s larger market capitalization exposure generally detracted from relative performance.
International equity was a slight detractor from performance relative to the composite benchmark. The larger market capitalization bias within PL International Large-Cap and PL International Value Funds detracted from results, as companies with smaller market capitalizations within the MSCI EAFE Index outperformed their larger counterparts in the index.
A-7
PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
PL Portfolio Optimization Moderate Fund (managed by Pacific Life Fund Advisors LLC)
Q. How did the fund perform over the year ended March 31, 2010?
A. For the year ended March 31, 2010, the fund’s Class A returned 38.85%, compared to a 32.33% return for the PL Portfolio Optimization Moderate Composite Benchmark. The PL Portfolio Optimization Moderate Composite Benchmark is composed of up to four broad-based indices based on the fund’s target asset class allocation. The broad-based indices applicable during the reporting period had returns of 7.69% for the Barclays Capital U.S. Aggregate Bond Index, 49.77% for the S&P 500 Index and 54.44% for the MSCI EAFE Index.
The following graph shows the value as of March 31, 2010 of a $10,000 investment made in Class A shares since the fund began operations. For comparison purposes, the performance of the fund’s benchmarks is also shown. Performance data for Class B, C, and R shares will vary due to differences in fees and sales charges.
Performance Comparison
![(PERFORMANCE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-056340/p17732p1773218.gif)
Average Annual Total Returns for the Periods Ended March 31, 2010
PL Portfolio Optimization | ||||||||||||||||
Moderate | Class A | Class B | Class C | Class R | ||||||||||||
1 Year Total Return: | ||||||||||||||||
Without sales charge | 38.85 | % | 38.14 | % | 38.36 | % | 38.61 | % | ||||||||
With maximum sales charge | 31.26 | % | 33.14 | % | 37.36 | % | N/A | |||||||||
Barclays Capital U.S. Aggregate Bond Index | 7.69 | % | ||||||||||||||
S&P 500 Index | 49.77 | % | ||||||||||||||
PL Portfolio Optimization Moderate Composite Benchmark | 32.33 | % | ||||||||||||||
5 Year Total Return: | ||||||||||||||||
Without sales charge | 4.34 | % | 3.68 | % | 3.69 | % | N/A | |||||||||
With maximum sales charge | 3.17 | % | 3.33 | % | 3.69 | % | N/A | |||||||||
Barclays Capital U.S. Aggregate Bond Index | 5.44 | % | ||||||||||||||
S&P 500 Index | 1.92 | % | ||||||||||||||
PL Portfolio Optimization Moderate Composite Benchmark | 3.98 | % | ||||||||||||||
Since Inception (December 31, 2003): | ||||||||||||||||
Without sales charge | 4.51 | % | 3.88 | % | 3.87 | % | 3.48 | % | ||||||||
With maximum sales charge | 3.57 | % | 3.75 | % | 3.87 | % | N/A | |||||||||
Barclays Capital U.S. Aggregate Bond Index | 4.96 | % | ||||||||||||||
S&P 500 Index | 2.87 | % | ||||||||||||||
PL Portfolio Optimization Moderate Composite Benchmark | 4.49 | % |
Performance data shown represents past performance. Investment return and principal value will fluctuate so that shares of the fund when redeemed may be worth more or less than their original cost. Past performance is not predictive of future performance. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Q. Discuss both positive and negative factors that materially affected the fund’s performance during the year, including relevant market conditions, investment strategies and techniques, and particular sectors or securities.
A. The PL Portfolio Optimization Moderate Fund has just over half of its allocation in a diverse mix of domestic and international equity funds, with the remainder in several fixed income funds. The fund outperformed its composite benchmark over the trailing twelve-month period. Outperformance of the fund was driven by domestic equity and fixed income allocations while the international equity exposure slightly detracted from performance over the period.
Within the fund’s domestic equity allocation, small-capitalization and mid-capitalization companies helped boost relative performance. Specifically, the PL Mid-Cap Equity, PL Mid-Cap Growth, and PL Small-Cap Growth Funds all generated strong returns relative to the equity component of the composite benchmark (S&P 500 Index). The fund’s larger market capitalization exposure generally detracted from relative performance. An allocation to real estate also positively contributed to performance as the PL Real Estate Fund returned more than 100% for the trailing twelve-month period. Overall, solid performance from the domestic equity segment of the fund drove relative performance.
A-8
PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
International equity was a slight detractor from performance relative to the composite benchmark. Though a small emerging markets allocation contributed positively to performance, it was not enough to offset the fund’s overweight position to companies with large market capitalizations which trailed the international component of the composite benchmark (MSCI EAFE Index).
The fixed income segment of the fund was also a strong contributor to performance. A large weighting in the PL Managed Bond Fund helped drive relative performance, as the fund outperformed the fixed income component of the composite benchmark (Barclays Capital U.S. Aggregate Bond Index). Bank loans and TIPS more than offset the underperformance from a short duration allocation.
PL Portfolio Optimization Moderate-Aggressive Fund (managed by Pacific Life Fund Advisors LLC)
Q. How did the fund perform over the year ended March 31, 2010?
A. For the year ended March 31, 2010, the fund’s Class A returned 48.26%, compared to a 41.91% return for the PL Portfolio Optimization Moderate-Aggressive Composite Benchmark. The PL Portfolio Optimization Moderate-Aggressive Composite Benchmark is composed of up to four broad-based indices based on the fund’s target asset class allocation. The broad-based indices applicable during the reporting period had returns of 7.69% for the Barclays Capital U.S. Aggregate Bond Index, 49.77% for the S&P 500 Index and 54.44% for the MSCI EAFE Index.
The following graph shows the value as of March 31, 2010 of a $10,000 investment made in Class A shares since the fund began operations. For comparison purposes, the performance of the fund’s benchmarks is also shown. Performance data for Class B, C, and R shares will vary due to differences in fees and sales charges.
Performance Comparison
![(PERFORMANCE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-056340/p17732p1773219.gif)
Average Annual Total Returns for the Periods Ended March 31, 2010
PL Portfolio Optimization | ||||||||||||||||
Moderate-Aggressive | Class A | Class B | Class C | Class R | ||||||||||||
1 Year Total Return: | ||||||||||||||||
Without sales charge | 48.26 | % | 47.84 | % | 48.18 | % | 48.07 | % | ||||||||
With maximum sales charge | 40.02 | % | 42.84 | % | 47.18 | % | N/A | |||||||||
Barclays Capital U.S. Aggregate Bond Index | 7.69 | % | ||||||||||||||
S&P 500 Index | 49.77 | % | ||||||||||||||
PL Portfolio Optimization Moderate-Aggressive Composite Benchmark | 41.91 | % | ||||||||||||||
5 Year Total Return: | ||||||||||||||||
Without sales charge | 3.55 | % | 2.89 | % | 2.90 | % | N/A | |||||||||
With maximum sales charge | 2.39 | % | 2.53 | % | 2.90 | % | N/A | |||||||||
Barclays Capital U.S. Aggregate Bond Index | 5.44 | % | ||||||||||||||
S&P 500 Index | 1.92 | % | ||||||||||||||
PL Portfolio Optimization Moderate-Aggressive Composite Benchmark | 3.29 | % | ||||||||||||||
Since Inception (December 31, 2003): | ||||||||||||||||
Without sales charge | 4.02 | % | 3.39 | % | 3.37 | % | 2.44 | % | ||||||||
With maximum sales charge | 3.08 | % | 3.26 | % | 3.37 | % | N/A | |||||||||
Barclays Capital U.S. Aggregate Bond Index | 4.96 | % | ||||||||||||||
S&P 500 Index | 2.87 | % | ||||||||||||||
PL Portfolio Optimization Moderate-Aggressive Composite Benchmark | 4.17 | % |
Performance data shown represents past performance. Investment return and principal value will fluctuate so that shares of the fund when redeemed may be worth more or less than their original cost. Past performance is not predictive of future performance. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Q. Discuss both positive and negative factors that materially affected the fund’s performance during the year, including relevant market conditions, investment strategies and techniques, and particular sectors or securities.
A. The PL Portfolio Optimization Moderate-Aggressive Fund primarily allocates to a diverse group of domestic and international equity funds and has a moderate exposure to fixed income funds. The fund outperformed its composite benchmark over the trailing twelve-month period. Outperformance of the fund was driven by domestic equity and fixed income allocations while the international equity exposure slightly detracted from performance over the period.
A-9
PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
Within the fund’s domestic equity allocation, small-capitalization and mid-capitalization companies helped boost relative performance. Specifically, the PL Mid-Cap Equity, PL Mid-Cap Growth, and PL Small-Cap Growth Funds all generated strong returns relative to the equity component of the composite benchmark (S&P 500 Index). Except for the PL Comstock Fund, the fund’s larger market capitalization exposure generally detracted from relative performance. An allocation to real estate also positively contributed to performance as the PL Real Estate Fund returned more than 100% for the trailing twelve-month period. Overall, solid performance from the domestic equity segment of the fund drove relative performance.
International equity detracted from performance relative to the composite benchmark. The large market capitalization bias within the PL International Large-Cap and PL International Value Funds detracted slightly, as smaller companies within the MSCI EAFE Index outperformed their larger counterparts. Though a small emerging markets allocation contributed positively to performance, it was not enough to compensate for the underperformance of larger foreign companies held in the fund.
The funds smaller allocation to fixed income was a modest positive contributor to performance. The PL Managed Bond Fund helped drive relative performance, as the fund outperformed the fixed income component of the composite benchmark (Barclays Capital U.S. Aggregate Bond Index). Underperformance from a small short duration allocation was minimized by strong performance from TIPS.
PL Portfolio Optimization Aggressive Fund (managed by Pacific Life Fund Advisors LLC)
Q. How did the fund perform over the year ended March 31, 2010?
A. For the year ended March 31, 2010, the fund’s Class A returned 55.84%, compared to a 49.30% return for the PL Portfolio Optimization Aggressive Composite Benchmark. The PL Portfolio Optimization Aggressive Composite Benchmark is composed of up to four broad-based indices based on the fund’s target asset class allocation. The broad-based indices applicable during the reporting period had returns of 7.69% for the Barclays Capital U.S. Aggregate Bond Index, 49.77% for the S&P 500 Index and 54.44% for the MSCI EAFE Index.
The following graph shows the value as of March 31, 2010 of a $10,000 investment made in Class A shares since the fund began operations. For comparison purposes, the performance of the fund’s benchmarks is also shown. Performance data for Class B, C, and R shares will vary due to differences in fees and sales charges.
Performance Comparison
![(PERFORMANCE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-056340/p17732p1773220.gif)
Average Annual Total Returns for the Periods Ended March 31, 2010
PL Portfolio Optimization | ||||||||||||||||
Aggressive | Class A | Class B | Class C | Class R | ||||||||||||
1 Year Total Return: | ||||||||||||||||
Without sales charge | 55.84 | % | 56.15 | % | 56.11 | % | 55.70 | % | ||||||||
With maximum sales charge | 47.33 | % | 51.15 | % | 55.11 | % | N/A | |||||||||
Barclays Capital U.S. Aggregate Bond Index | 7.69 | % | ||||||||||||||
S&P 500 Index | 49.77 | % | ||||||||||||||
PL Portfolio Optimization Aggressive Composite Benchmark | 49.30 | % | ||||||||||||||
5 Year Total Return: | ||||||||||||||||
Without sales charge | 3.00 | % | 2.29 | % | 2.29 | % | N/A | |||||||||
With maximum sales charge | 1.84 | % | 1.93 | % | 2.29 | % | N/A | |||||||||
Barclays Capital U.S. Aggregate Bond Index | 5.44 | % | ||||||||||||||
S&P 500 Index | 1.92 | % | ||||||||||||||
PL Portfolio Optimization Aggressive Composite Benchmark | 2.49 | % | ||||||||||||||
Since Inception (December 31, 2003): | ||||||||||||||||
Without sales charge | 3.67 | % | 3.01 | % | 3.01 | % | 1.55 | % | ||||||||
With maximum sales charge | 2.74 | % | 2.88 | % | 3.01 | % | N/A | |||||||||
Barclays Capital U.S. Aggregate Bond Index | 4.96 | % | ||||||||||||||
S&P 500 Index | 2.87 | % | ||||||||||||||
PL Portfolio Optimization Aggressive Composite Benchmark | 3.67 | % |
Performance data shown represents past performance. Investment return and principal value will fluctuate so that shares of the fund when redeemed may be worth more or less than their original cost. Past performance is not predictive of future performance. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
A-10
PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
Q. Discuss both positive and negative factors that materially affected the fund’s performance during the year, including relevant market conditions, investment strategies and techniques, and particular sectors or securities.
A. The PL Portfolio Optimization Aggressive Fund allocates primarily to a diverse group of domestic and international equity funds. The fund also maintains a small allocation to fixed income. The fund outperformed its composite benchmark over the trailing twelve-month period. Outperformance of the fund was driven by an allocation to domestic equity. International equity exposure slightly detracted from performance over the period.
The fund’s allocation to companies with small- and mid-sized market capitalizations propelled relative performance. Specifically, the PL Mid-Cap Equity, PL Mid-Cap Growth, and PL Small-Cap Growth Funds all generated strong returns relative to the equity component of the composite benchmark (S&P 500 Index). Except for the PL Comstock Fund, the fund’s larger market capitalization exposure generally detracted from relative performance. An allocation to real estate also positively contributed to performance as the PL Real Estate Fund returned more than 100% for the trailing twelve-month period. Overall, solid performance from the domestic equity segment of the fund drove relative performance.
International equity detracted from performance relative to the composite benchmark. The large market capitalization bias within the PL International Large-Cap and PL International Value Funds detracted slightly, as smaller companies within the MSCI EAFE Index outperformed their larger counterparts. Though a small emerging markets allocation contributed positively to performance, it was not enough to compensate for the underperformance of larger foreign companies held in the fund.
The fixed income segment modestly contributed to the fund’s outperformance, as the PL Managed Bond Fund generated strong returns relative to the fixed income component of the composite benchmark (Barclays Capital U.S. Aggregate Bond Index).
Performance of the PL Portfolio Optimization Underlying Funds
PL Money Market Fund (managed by Pacific Asset Management)
Q. How did the fund perform over the year ended March 31, 2010?
A. For the year ended March 31, 2010, the fund’s Class A returned 0.03%, compared to a 0.17% return for its benchmark, the BofA Merrill Lynch U.S. 3-Month Treasury Bill (T-Bill) Index and a 0.11% return for the Lipper Money Market Funds Index. The current yield measured during the seven-day period ending March 31, 2010 was 0.00%.
The following graph shows the value as of March 31, 2010 of a $10,000 investment made in Class A shares since the fund began operations. For comparison purposes, the performance of the fund’s benchmarks is also shown.
Performance Comparison
![(PERFORMANCE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-056340/p17732p1773221.gif)
Average Annual Total Returns for the Periods Ended March 31, 2010
PL Money Market Fund | Class A | |||
1 Year Total Return: | ||||
Without sales charge | 0.03 | % | ||
BofA Merrill Lynch U.S. 3-Month T-Bill Index | 0.17 | % | ||
Lipper Money Market Funds Index | 0.11 | % | ||
5 Year Total Return: | ||||
Without sales charge | 2.44 | % | ||
BofA Merrill Lynch U.S. 3-Month T-Bill Index | 2.91 | % | ||
Lipper Money Market Funds Index | 2.81 | % | ||
Since Inception (September 28, 2001): | ||||
Without sales charge | 1.65 | % | ||
BofA Merrill Lynch U.S. 3-Month T-Bill Index | 2.35 | % | ||
Lipper Money Market Funds Index | 2.09 | % |
Performance data shown represents past performance. Investment return and principal value will fluctuate so that shares of the fund when redeemed may be worth more or less than their original cost. Past performance is not predictive of future performance. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
A-11
PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
Q. Discuss both positive and negative factors that materially affected the fund’s performance during the year, including relevant market conditions, investment strategies and techniques, and particular sectors or securities.
A. The Fed remained accommodative during the reporting period, with the Fed Funds rate remaining in the range of 0.00% to 0.25%. The Federal Open Market Committee (FOMC) communicated a consistent message throughout the year that rates would be kept “exceptionally low” for an “extended period of time”. In 2009, the government’s stimulus programs began to have an impact. The three-month London Interbank Offered Rate (LIBOR) fell from 1.19% on March 31, 2009 to 0.29% by March 31, 2010.
As the credit markets improved and appetite for risk increased, the government was able to phase out many of their emergency relief programs. The balance outstanding on the Commercial Paper Funding Facility (CPFF), which consisted of loans issued by the Fed to commercial paper issuers, fell from $244 billion on April 1, 2009 to only $8 billion on March 31, 2010. The Asset Backed Commercial Paper Money Market Fund Liquidity Facility (AMLF), which was vital to the markets in the months following Lehman’s default, was not utilized for the majority of the fourth quarter 2009 and first quarter 2010. The Fed’s program to purchase Treasury and agency paper expired on schedule at the end of the first quarter 2010. Thus far, despite the removal of this large unconventional buyer from the market, rates have not increased significantly.
The trend of reduced commercial paper supply continued during the year. Total supply peaked in the fall of 2007 at $2.2 trillion and fell to $1.1 trillion by March 31, 2010. This reduced supply was met on the demand side by declining assets in money market funds. Taxable money market fund assets, as reported by the Investment Company Institute, fell by more than $700 billion over the previous twelve months as an improving economy and low rates triggered outflows.
Recently, there has been more debate in the marketplace around the timing of a Fed rate increase. Given the very weak employment picture, we at Pacific Asset Management believe the Fed is going to remain cautious as the year progresses in order to ensure the sustainability of the recovery. If they do tighten in 2010, we expect the move to be well forecasted to the market and expect to shorten the fund’s weighted average maturity heading into a rate increase.
We continue to manage the fund with a focus on stability, liquidity, and current income through a consistent, disciplined investment approach emphasizing industry and asset type diversification.
PL Small-Cap Growth Fund (managed by Fred Alger Management, Inc.)
Q. How did the fund perform over the year ended March 31, 2010?
A. For the year ended March 31, 2010, the fund’s Class A returned 60.03%, compared to a 60.32% return for its benchmark, the Russell 2000 Growth Index.
The following graph shows the value as of March 31, 2010 of a $10,000 investment made in Class A shares since the fund began operations. For comparison purposes, the performance of the fund’s benchmark is also shown.
Performance Comparison
![(PERFORMANCE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-056340/p17732p1773222.gif)
Average Annual Total Returns for the Periods Ended March 31, 2010
PL Small-Cap Growth Fund | Class A | |||
1 Year Total Return: | ||||
Without sales charge | 60.03 | % | ||
With maximum sales charge | 51.29 | % | ||
Russell 2000 Growth Index | 60.32 | % | ||
5 Year Total Return: | ||||
Without sales charge | 1.65 | % | ||
With maximum sales charge | 0.50 | % | ||
Russell 2000 Growth Index | 3.82 | % | ||
Since Inception (September 28, 2001): | ||||
Without sales charge | 3.30 | % | ||
With maximum sales charge | 2.62 | % | ||
Russell 2000 Growth Index | 6.29 | % |
Performance data shown represents past performance. Investment return and principal value will fluctuate so that shares of the fund when redeemed may be worth more or less than their original cost. Past performance is not predictive of future performance. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
A-12
PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
Q. Discuss both positive and negative factors that materially affected the fund’s performance during the year, including relevant market conditions, investment strategies and techniques, and particular sectors or securities.
A. For the year ended March 31, 2010, the fund underperformed the benchmark. During that time, Alger’s investment philosophy and process remained unchanged: a research intensive, bottom-up, fundamental approach focused on discovering the fastest growing companies undergoing positive dynamic change.
The fund’s largest portfolio weightings were in the information technology, health care and consumer discretionary sectors. Generally speaking, the sectors’ weightings in the fund were similar to the sectors’ weightings in the benchmark with only slight variation over the course of the past twelve months. As a result, good stock selection was the most important reason for the fund’s favorable absolute performance. On a relative basis, the sectors that most contributed to positive fund performance included the information technology and energy sectors while the sectors that most detracted from the fund’s performance results included consumer discretionary and financials. Among the most important relative contributors to fund performance were Tupperware Brands Corp., Central European Distribution Corp. and Atheros Communications, Inc. Conversely, detracting from the fund’s overall results on a relative basis were Immucor, Inc., Corinthian Colleges, Inc., Myriad Genetics, Inc. and First Commonwealth Financial Corp.
As of March 31, 2010, the fund remained well diversified. Generally speaking, our research team was able to identify many companies undergoing positive, dynamic change where our forward looking assessment of their fundamentals are believed to have exceeded Wall Street’s consensus.
PL International Value Fund (managed by AllianceBernstein L.P.)
Q. How did the fund perform over the year ended March 31, 2010?
A. For the year ended March 31, 2010, the fund’s Class A returned 52.10%, compared to a 54.44% return for its benchmark, the MSCI EAFE Index.
The following graph shows the value as of March 31, 2010 of a $10,000 investment made in Class A shares since the fund began operations. For comparison purposes, the performance of the fund’s benchmark is also shown.
Performance Comparison
![(PERFORMANCE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-056340/p17732p1773223.gif)
Average Annual Total Returns for the Periods Ended March 31, 2010
PL International Value Fund | Class A | |||
1 Year Total Return: | ||||
Without sales charge | 52.10 | % | ||
With maximum sales charge | 43.67 | % | ||
MSCI EAFE Index | 54.44 | % | ||
5 Year Total Return: | ||||
Without sales charge | -0.84 | % | ||
With maximum sales charge | -1.95 | % | ||
MSCI EAFE Index | 3.75 | % | ||
Since Inception (September 28, 2001): | ||||
Without sales charge | 3.22 | % | ||
With maximum sales charge | 2.54 | % | ||
MSCI EAFE Index | 7.15 | % |
Performance data shown represents past performance. Investment return and principal value will fluctuate so that shares of the fund when redeemed may be worth more or less than their original cost. Past performance is not predictive of future performance. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Q. Discuss both positive and negative factors that materially affected the fund’s performance during the year, including relevant market conditions, investment strategies and techniques, and particular sectors or securities.
A. For the year ended March 31, 2010, the fund underperformed the benchmark. Sector selection hurt fund performance, while security selection was a positive influence to the fund’s performance.
A-13
PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
As investor risk appetite returned, both the overweight position to the defensive telecommunications sector and stock selection in that sector detracted from the fund’s returns. This included the fund’s position in Nippon Telegraph & Telephone Corp. (Japan). Stock selection in the utilities sector also detracted from fund performance, including positions in the United Kingdom (U.K.) power station firm, Drax Group P.L.C. and Japan electric power company, Kyushu Electric Power Co., Inc. While overall security selection in the financials sector contributed to fund returns, the fund’s holding in Japan’s Sumitomo Mitsui Financial Group, Inc. lagged due to concern over tighter capital requirements for banks.
Stock selection in the capital equipment sector was strong during the period. Contributors to fund performance included automakers, Nissan Motor Co. Ltd. (Japan) and Renault S.A. (France) and also Vallourec S.A. (France). Nissan Motor and Renault, which were shunned at the beginning of 2009 when risk aversion was at its peak, posted strong gains, as investors shook off bankruptcy fears and anticipated an end to the recession. Vallourec is the largest producer of stainless steel tubing used in automobile and specialty products, and also benefited from the improved investor sentiment.
In finance, Deutsche Bank A.G. (Germany) was a strong performer contributing to fund returns and an overweight position to the financials sector also contributed to fund returns. While we at AllianceBernstein have been reducing our exposure to financial stocks, lingering uncertainty in the wake of the global financial crisis continues to create opportunities. Despite strong earnings for many investment banks in 2009, controversy abounds, particularly regarding the potential effect of new requirements that will force banks to set aside more money for future losses or restrictions on certain business activities. We expect the fund’s bank holdings to weather these changes better than the market anticipates. For example, the banks’ holdings in the fund have already substantially increased their capital base compared with levels before the financial market crisis.
We continue to use our strategy of deep quantitative and fundamental research to find companies whose earnings power and cash generation are being underpriced by the market.
PL Large-Cap Value Fund (managed by ClearBridge Advisors, LLC)
Q. How did the fund perform over the year ended March 31, 2010?
A. For the year ended March 31, 2010, the fund’s Class A returned 43.79%, compared to a 53.55% return for its benchmark, the Russell 1000 Value Index.
The following graph shows the value as of March 31, 2010 of a $10,000 investment made in Class A shares since the fund began operations. For comparison purposes, the performance of the fund’s benchmark is also shown.
Performance Comparison
![(PERFORMANCE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-056340/p17732p1773224.gif)
Average Annual Total Returns for the Periods Ended March 31, 2010
PL Large-Cap Value Fund | Class A | |||
1 Year Total Return: | ||||
Without sales charge | 43.79 | % | ||
With maximum sales charge | 35.84 | % | ||
Russell 1000 Value Index | 53.55 | % | ||
5 Year Total Return: | ||||
Without sales charge | 1.26 | % | ||
With maximum sales charge | 0.11 | % | ||
Russell 1000 Value Index | 1.05 | % | ||
Since Inception (September 28, 2001): | ||||
Without sales charge | 2.41 | % | ||
With maximum sales charge | 1.73 | % | ||
Russell 1000 Value Index | 4.46 | % |
Performance data shown represents past performance. Investment return and principal value will fluctuate so that shares of the fund when redeemed may be worth more or less than their original cost. Past performance is not predictive of future performance. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Q. Discuss both positive and negative factors that materially affected the fund’s performance during the year, including relevant market conditions, investment strategies and techniques, and particular sectors or securities.
A-14
PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
A. We at ClearBridge utilize an interactive, research-driven approach to identify companies with strong business franchises and attractive valuations. We look for companies with proven business models that we can understand; companies with sustainable competitive advantages; and stocks capable of generating superior returns across a range of potential scenarios. We place a heavy emphasis on higher certainty of near and medium term cash flows, while heavily discounting earnings from emerging business models or products. We consider valuations relative to normalized earnings power.
For the year ended March 31, 2010, the fund underperformed the benchmark. On an absolute basis, the fund exhibited positive returns in all sectors of the market. Relative to the benchmark, overall sector allocation and security selection detracted from the fund’s performance during the reporting period. In particular, the fund’s overweight position in the consumer staples sector and underweight position in the financials sector detracted from performance. The fund’s overweight position in the consumer discretionary sector and its underweight position in the utilities sector helped relative performance. Stock selection within the energy and telecommunication services contributed to the fund’s relative performance, while security selection within the consumer discretionary and financials sectors detracted from performance. In terms of individual portfolio holdings, leading absolute contributors to fund performance for the period included Wells Fargo & Co., JPMorgan Chase & Co., Bank of America Corp., News Corp. and Philip Morris International, Inc. Stocks that detracted from the fund’s absolute performance during the year included Genzyme Corp., Morgan Stanley, AOL, Inc., EchoStar Corp. and The Progressive Corp.
During the year, we identified multiple opportunities to establish positions in high quality franchises at very attractive valuations. Some of the new additions to the fund included Merck & Co., Inc., The Procter & Gamble Co., Hewlett-Packard Co. and Johnson & Johnson. These companies have established well-understood business models, leading market positions, solid balance sheets, and strong cash flows and were trading at very attractive valuations.
The fund added broadly to its positions in the financials sector following the government stress tests and participated in several secondary equity offerings including those from JPMorgan Chase, Wells Fargo and Bank of America. While the banks face many challenges in the near term, we believe they offer attractive return potential for long-term investors.
In addition, the fund sold its position in Kraft Foods, Inc. Kraft operates in some of the more competitive product categories which may constrain its sales and profits growth opportunities. Equally important, we think that the company paid more than a fair price for Cadbury P.L.C., an opinion we’ve shared with Kraft management. As part of the on-going reduction of the telecommunication services sector exposure, the fund trimmed its position in AT&T, Inc. primarily due to growing competitive pressure in AT&T’s wireless operations as the industry rapidly approaches maturation. Furthermore, we are concerned that AT&T’s eventual loss of its iPhone exclusivity will negatively impact its wireless business.
The fund is significantly overweight in the consumer staples sector relative to the benchmark. We believe these companies should generate good returns over time due to their strong brands, healthy balance sheets and positive cash flow characteristics. Within the consumer discretionary sector, we believe media companies with strong franchises and solid balance sheets, such as Time Warner, Inc. and News Corp., should continue to benefit from an economic recovery and ever growing demand for high quality content. In the financials sector, the fund remains overweight certain property and casualty insurance companies with strong balance sheets that we feel should benefit from the financial distress experienced by their competitors and an eventual improvement in the pricing cycle. In the health care sector, depressed valuations surrounding patent expirations, consolidation, and regulatory reform created several very attractive opportunities within large-capitalization pharmaceuticals, including Pfizer, Inc., Merck & Co., Inc. and Roche Holding A.G.
During the past two years, a challenging economic environment combined with unprecedented government intervention created an extraordinary level of investor uncertainty. In our opinion, periods of high uncertainty often create the best investment opportunities. We believe that high quality companies, with sustainable competitive advantages, strong balance sheets and attractive valuations should outperform the market over the long-term.
PL Short Duration Bond Fund (managed by Goldman Sachs Asset Management, L.P.)
Q. How did the fund perform over the year ended March 31, 2010?
A. For the year ended March 31, 2010, the fund’s Class A returned 5.27%, compared to a 1.41% return for its benchmark, the BofA Merrill Lynch 1-3 Year U.S. Treasury Index.
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PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
The following graph shows the value as of March 31, 2010 of a $10,000 investment made in Class A shares since the fund began operations. For comparison purposes, the performance of the fund’s benchmark is also shown.
Performance Comparison
![(PERFORMANCE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-056340/p17732p1773215.gif)
Average Annual Total Returns for the Periods Ended March 31, 2010
PL Short Duration Bond Fund | Class A | |||
1 Year Total Return: | ||||
Without sales charge | 5.27 | % | ||
With maximum sales charge | -0.48 | % | ||
BofA Merrill Lynch 1-3 Year U.S. Treasury Index | 1.41 | % | ||
5 Year Total Return: | ||||
Without sales charge | 3.70 | % | ||
With maximum sales charge | 2.54 | % | ||
BofA Merrill Lynch 1-3 Year U.S. Treasury Index | 4.24 | % | ||
Since Inception (December 31, 2003): | ||||
Without sales charge | 2.88 | % | ||
With maximum sales charge | 1.95 | % | ||
BofA Merrill Lynch 1-3 Year U.S. Treasury Index | 3.48 | % |
Performance data shown represents past performance. Investment return and principal value will fluctuate so that shares of the fund when redeemed may be worth more or less than their original cost. Past performance is not predictive of future performance. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Q. Discuss both positive and negative factors that materially affected the fund’s performance during the year, including relevant market conditions, investment strategies and techniques, and particular sectors or securities.
A. For the year ended March 31, 2010, the fund outperformed the benchmark. A combination of top-down and bottom-up strategies impacted the fund’s performance. Tactical management of the fund’s duration and term structure positively contributed to returns over the year. Specifically benefiting the fund were its short positions in the long end of the yield curve and long positions in the front end of the yield curve, due to the significant steepening over the period. The fund’s cross-sector positioning relative to the benchmark also significantly contributed to its performance. For example, an overweight exposure to investment grade corporate bonds was the largest contributor to the fund’s performance, followed closely by the fund’s overweight exposure to non-agency mortgages. The fund’s overweight exposure to the corporate sector added to its performance, as liquidity returned to the credit markets and spreads significantly tightened over the period. The non-agency mortgage market performed very well, rallying approximately 50% from its lows in early 2009. The sector was supported by the federal government’s Public-Private Investment Program (PPIP) and a variety of housing market indicators suggesting overall activity appeared to be stabilizing.
Within the fund’s bottom-up strategies, selection of super-senior non-agency mortgages was the key driver of its performance, as these securities held significant credit enhancements. Non-agency residential mortgage-backed securities benefited from continued stabilization of fundamentals and increased demand throughout the reporting period. Selection of specific supranational and government guaranteed corporate securities also outperformed during the period and boosted the fund’s results. Elsewhere, selection of TIPS enhanced the fund’s results as breakeven spreads continued to widen. The fund also benefited from having exposure to various spread sectors, specifically in the front-end of the yield curve. Selection of lower quality corporate names also positively contributed to fund results, as these securities outperformed their higher quality counterparts amid the global flight from quality. We at Goldman Sachs believe that there were no significant detractors to fund performance relative to the benchmark for this period.
PL Floating Rate Loan Fund (managed by Highland Capital Management, L.P.)
Q. How did the fund perform over the year ended March 31, 2010?
A. For the year ended March 31, 2010, the fund’s Class A returned 26.70%, compared to a 41.05% return for its benchmark, the Credit Suisse Leveraged Loan Index.
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PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
The following graph shows the value as of March 31, 2010 of a $10,000 investment made in Class A shares since the fund began operations. For comparison purposes, the performance of the fund’s benchmark is also shown.
Performance Comparison
![(PERFORMANCE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-056340/p17732p1773214.gif)
Average Annual Total Returns for the Periods Ended March 31, 2010
PL Floating Rate Loan Fund | Class A | |||
1 Year Total Return: | ||||
Without sales charge | 26.70 | % | ||
Credit Suisse Leveraged Loan Index | 41.05 | % | ||
Since Inception (June 30, 2008): | ||||
Without sales charge | 4.76 | % | ||
Credit Suisse Leveraged Loan Index | 5.39 | % |
Performance data shown represents past performance. Investment return and principal value will fluctuate so that shares of the fund when redeemed may be worth more or less than their original cost. Past performance is not predictive of future performance. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Q. Discuss both positive and negative factors that materially affected the fund’s performance during the year, including relevant market conditions, investment strategies and techniques, and particular sectors or securities.
A. For the year ended March 31, 2010, the fund underperformed the benchmark. The fund seeks to provide a high level of current income, consistent with preservation of capital and intends to achieve its objective through investment in bank loans. Bank loans are business loans that have a senior right to payment to most other debts of the borrower. These loans have historically offered interest rates that offer a premium over prevailing market rates, such as the LIBOR and are reset on a regular schedule. Highland’s strategies for the reporting period were driven by the belief that the economy was stabilizing and that the leveraged loan markets represent a good long-term investment opportunity. As of March 31, 2010, the fund was well diversified across issuers and industries. Approximately 6.5% of the invested portfolio was in second lien loan investments. The largest sector positions in the fund during the period were in the health care and diversified media sectors. Some of the fund’s core positions included health care companies, Talecris Biotherapeutics Holdings Corp. and Life Technologies Corp. and diversified media companies, Nielsen Finance LLC and Harland Clarke Holding Corp.
The fund’s performance was positively impacted by positions within the chemicals and retail sectors during the reporting period. The fund was negatively impacted by being overweight defensive sectors such as health care, cable and utilities which did not rally as strongly as the more cyclical industries during the second and third quarters of the year.
The loan market during the twelve-month period ended March 31, 2010 was characterized by unprecedented volatility. The benchmark fell to a low of 61.65 in December of 2009 and as of March 31, 2010, it had rallied back above 90. This volatility was primarily driven by technical factors generated by the turmoil in the financials sector. September of 2008 brought stunning news within the global financial sector and a host of global financial regulators taking monumental efforts to stabilize and restore confidence in the global financial system and economy. This uncertainty and other factors resulted in sellers outnumbering willing buyers and created a systematic deleveraging, particularly in the hedge fund community. This impacted the senior secured bank loan market along with markets for other assets. The dislocation in 2008 finally began to weaken during calendar year 2009 with the technical environment strengthening. Forced selling decreased dramatically and the amount of new issue loans declined while the demand for loans was increasing due to issuers paying down debt through bond exchanges, tender offers and repayments. This increased cash in the market was augmented by new investors finding the depressed trading levels attractive and entering the market pushing the bid prices up. In addition to the improved technical environment, during the summer of 2009, macroeconomic and issuer fundamentals began to show signs of bottoming accompanied by a slight improvement.
We at Highland believe that the next fiscal year will continue to be driven more by defaults and earnings. We believe the collapse during the second half of 2008 and the rally experienced during the first half of 2009 was largely technical in nature but has evolved into a fundamentally driven, credit pickers market. We remain constructive on the asset class and believe good buying opportunities remain for the diligent investors. We believe that the continued stability in the global economic environment will lead to continued stabilization in the loan market. The loan market may continue, however, to bifurcate, with well collateralized loans continuing to trade well and those facing
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PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
economic and fundamental headwinds trading poorly. Issuers will continue to bring amendments to lender groups in an effort to stay within covenants which we believe will improve the economics of the loans to the lenders.
PL Growth LT Fund (managed by Janus Capital Management LLC)
Q. How did the fund perform over the year ended March 31, 2010?
A. For the year ended March 31, 2010, the fund’s Class A returned 47.26% compared to a 49.75% return for its benchmark, the Russell 1000 Growth Index.
The following graph shows the value as of March 31, 2010 of a $10,000 investment made in Class A shares since the fund began operations. For comparison purposes, the performance of the fund’s benchmark is also shown.
Performance Comparison
![(PERFORMANCE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-056340/p17732p1773213.gif)
Average Annual Total Returns for the Periods Ended March 31, 2010
PL Growth LT Fund | Class A | |||
1 Year Total Return: | ||||
Without sales charge | 47.26 | % | ||
With maximum sales charge | 39.17 | % | ||
Russell 1000 Growth Index | 49.75 | % | ||
5 Year Total Return: | ||||
Without sales charge | 2.44 | % | ||
With maximum sales charge | 1.29 | % | ||
Russell 1000 Growth Index | 3.42 | % | ||
Since Inception (September 28, 2001): | ||||
Without sales charge | 2.21 | % | ||
With maximum sales charge | 1.53 | % | ||
Russell 1000 Growth Index | 3.13 | % |
Performance data shown represents past performance. Investment return and principal value will fluctuate so that shares of the fund when redeemed may be worth more or less than their original cost. Past performance is not predictive of future performance. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Q. Discuss both positive and negative factors that materially affected the fund’s performance during the year, including relevant market conditions, investment strategies and techniques, and particular sectors or securities.
A. For the year ended March 31, 2010, the fund underperformed the benchmark. Weak performing selections within the financials and industrials sectors provided the largest drag on the fund’s comparable performance results. Stock selection drove the fund’s performance, particularly within consumer staples and telecommunication services sectors.
We at Janus seek to deliver strong risk-adjusted returns over an entire market cycle by managing a diversified, moderately positioned, classic large-capitalization growth portfolio. We look for durable franchises with consistent free cash flow growth, high and improving returns, diversified revenue streams and properly incentivized management teams.
Global brewer Anheuser-Busch InBev N.V. was the top contributor to fund performance during the reporting period as it benefited from a number of operational efficiencies and market share gains. The company also was successful in paying down some of its debt. We think Anheuser-Busch InBev remains very well positioned with a portfolio of leading brands and a management team that has a history of controlling costs and improving margins.
Apple, Inc. rose during the reporting period also benefiting the fund’s performance amid continued market share gains in the personal computer and smart phone markets. The product cycle has been robust and customers seem to be centering much of their digital lives on Apple products. We like the company’s durable franchise, long-term growth prospects, and multiple ways to win in various economic environments.
Wireless tower company Crown Castle International Corp. was another contributor to fund performance. We believe Crown Castle will continue to benefit from wireless carriers’ need to improve their networks given the demand generated by the data usage of smart phones. We like its relatively stable and predictable cash flows and its strong position in a market characterized by high barriers to entry.
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PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
Earlier in the reporting period, Genzyme Corp. suffered from manufacturing issues involving a virus contamination at one of its plants. This had a negative impact on production, sales and thus earnings which in turn, detracted from the fund’s performance. Once these issues become resolved, we think the long-term fundamentals for Genzyme are attractive. We also like management’s focus on improving returns, balanced growth and value creation.
Motorola, Inc. also declined late in the reporting period after providing a weak forecast thereby detracting from fund performance. Though the company is undergoing corporate action to split into two separate entities, we think the current price is more than supported by the stable cash flows and the value within the two-way radio and set top box (a device that enables a television set to become a user interface to the Internet and also enables a television set to receive and decode digital television broadcasts) business. Given the potential for some modest success with their smart phone offering, we believe the risk/reward profile is asymmetrically skewed in our favor.
We are cautious by nature, and the market’s strong run has made us more so. Seemingly, fear has receded from professional investors’ mindsets, and we are reminded that this is not always a positive backdrop for future equity returns. We worry that large segments of the private economy are still being pumped up by the artificial heart of public stimulus. Removing that stimulus at the right time is likely to be a tricky maneuver for the Fed. We remain open to the possibility that a positive feedback loop could emerge where new hiring drives higher incomes, rising confidence and consumer spending again. But small businesses have historically created the bulk of jobs in America and are still struggling. In general, businesses are getting mixed signals from Washington D.C., with considerable fiscal and monetary stimulus relieving some concerns, while tax and regulatory policy are causing some uncertainty.
Against this uncertain backdrop, we continue to believe our approach is prudent. We seek to own the dominant franchises that can take market share in an upturn, or buy weaker competitors in a downturn. Companies that we believe can control their own destinies are attractive to us. Over the long-term, we believe a conservatively positioned growth portfolio invested in value creators can perform well on both a relative and absolute basis.
PL Mid-Cap Equity Fund (managed by Lazard Asset Management LLC)
Q. How did the fund perform over the year ended March 31, 2010?
A. For the year ended March 31, 2010, the fund’s Class A returned 63.29%, compared to a 67.71% return for its benchmark, the Russell Midcap Index.
The following graph shows the value as of March 31, 2010 of a $10,000 investment made in Class A shares since the fund began operations. For comparison purposes, the performance of the fund’s benchmark is also shown.
Performance Comparison
![(PERFORMANCE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-056340/p17732p1773212.gif)
Average Annual Total Returns for the Periods Ended March 31, 2010
PL Mid-Cap Equity Fund | Class A | |||
1 Year Total Return: | ||||
Without sales charge | 63.29 | % | ||
With maximum sales charge | 54.31 | % | ||
Russell Midcap Index | 67.71 | % | ||
5 Year Total Return: | ||||
Without sales charge | 1.81 | % | ||
With maximum sales charge | 0.66 | % | ||
Russell Midcap Index | 4.20 | % | ||
Since Inception (December 31, 2004): | ||||
Without sales charge | 1.53 | % | ||
With maximum sales charge | 0.45 | % | ||
Russell Midcap Index | 3.95 | % |
Performance data shown represents past performance. Investment return and principal value will fluctuate so that shares of the fund when redeemed may be worth more or less than their original cost. Past performance is not predictive of future performance. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Q. Discuss both positive and negative factors that materially affected the fund’s performance during the year, including relevant market conditions, investment strategies and techniques, and particular sectors or securities.
A. For the year ended March 31, 2010, the fund underperformed the benchmark. During the last twelve months, the fund benefited from stock selection in the health care sector, as positions in Hospira, Inc. and Warner Chilcott P.L.C. consistently exceeded earnings
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PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
expectations during the period. Hospira, a specialty pharmaceuticals and medication delivery company, benefited from its management team’s multi-year cost reduction plan, which increased its margins. In addition to strong earnings over the past year, Warner Chilcott rose sharply after announcing it would purchase The Procter & Gamble Co’s. global pharmaceuticals business. We at Lazard view the deal favorably, as the purchase price was attractive and Warner Chilcott will likely realize immediate financial and strategic benefits. The fund also benefited from stock selection in the energy sector. Exposure to coal production was the largest contributor to fund performance, as demand for metallurgic coal, which is used in steelmaking, rebounded sharply as steelmakers began restocking inventories. Shares of Smith International, Inc., an oil services company, rose sharply as a result of a takeover offer from Schlumberger Ltd. The stock was subsequently sold from the fund as it reached our valuation target. An underweight position in the utilities sector also helped fund performance, as the sector materially lagged the overall market during the last twelve months.
Conversely, stock selection in the financials sector detracted from fund performance. Fund holdings in insurers, such as PartnerRe Ltd. and RenaissanceRe Holdings Ltd., lagged during the period after performing well the previous twelve months (particularly during the market downturn in 2008). An underweight position in REITs also detracted from fund returns, as it was the best-performing industry within the financials sector. The industry performed very well as a result of successful capital raises by several REITs, illustrating an increased access to capital. Stock selection in the materials sector detracted from fund performance as well. A fund position in the packaging company Ball Corp. also lagged after performing very well the previous year. We continue to view Ball Corp. favorably for several reasons, including its attractive valuation relative to its history, strong free-cash-flow generation, the acquisition of beverage can assets from Anheuser-Busch InBev, favorable new contract negotiations, and cost reduction efforts.
Over the quarters and years ahead, we continue to believe we will see increasing differentiation between the winners, survivors, and losers. We expect the winners to be the companies with strong balance sheets, robust organic cash flow, and the resulting operational flexibility. We believe that our forward-looking, fundamental research, deployed through a robust scenario analysis framework and disciplined construction process, is particularly well designed for the kind of uncertainty that we are likely to see on the road ahead.
PL International Large-Cap Fund (managed by MFS Investment Management)
Q. How did the fund perform over the year ended March 31, 2010?
A. For the year ended March 31, 2010, the fund’s Class A returned 52.64%, compared to a 54.44% return for its benchmark, the MSCI EAFE Index.
The following graph shows the value as of March 31, 2010 of a $10,000 investment made in Class A shares since the fund began operations. For comparison purposes, the performance of the fund’s benchmark is also shown.
Performance Comparison
![(PERFORMANCE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-056340/p17732p1773211.gif)
Average Annual Total Returns for the Periods Ended March 31, 2010
PL International Large-Cap Fund | Class A | |||
1 Year Total Return: | ||||
Without sales charge | 52.64 | % | ||
With maximum sales charge | 44.30 | % | ||
MSCI EAFE Index | 54.44 | % | ||
5 Year Total Return: | ||||
Without sales charge | 5.60 | % | ||
With maximum sales charge | 4.41 | % | ||
MSCI EAFE Index | 3.75 | % | ||
Since Inception (September 28, 2001): | ||||
Without sales charge | 6.86 | % | ||
With maximum sales charge | 6.15 | % | ||
MSCI EAFE Index | 7.15 | % |
Performance data shown represents past performance. Investment return and principal value will fluctuate so that shares of the fund when redeemed may be worth more or less than their original cost. Past performance is not predictive of future performance. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Q. Discuss both positive and negative factors that materially affected the fund’s performance during the year, including relevant market conditions, investment strategies and techniques, and particular sectors or securities.
A. For the year ended March 31, 2010, the fund underperformed its benchmark. A combination of stock selection and an overweighted position in the health care sector detracted from the fund’s performance relative to the benchmark. The fund’s overweighted position in
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PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
pharmaceutical and diagnostic company Roche Holding A.G. (Switzerland), medical device manufacturer Synthes, Inc. (Switzerland), and pharmaceutical company Merck KgaA (Germany) hindered the fund’s relative results as all three stocks underperformed the benchmark over the reporting period.
Stock selection in the basic materials sector was another detractor from the fund’s relative performance. No individual stocks within this sector were among the fund’s top relative detractors from performance.
Other securities that held back the fund’s relative returns included oil and gas exploration company INPEX Corp., energy and environmental services company GDF Suez (France), household and industrial products manufacturer Kao Corp. (Japan), eyeglass maker HOYA Corp. (Japan), and contract semiconductor manufacturer Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan). The fund’s positioning in financial services firm Banco Santander Brasil S.A. (Spain) also dampened its relative returns.
During the reporting period, currency exposure was also a detractor from the fund’s relative performance. All of MFS’ investment decisions are driven by the fundamentals of each individual opportunity and, as such, it is common for our funds to have different currency exposure than the benchmark.
Additionally, the fund’s cash position also held back its relative returns. The fund holds cash to buy new holdings and to provide liquidity. In a period when equity markets rose, as measured by the fund’s benchmark, holding cash hurt fund performance versus the benchmark, which has no cash position.
A combination of stock selection and an underweighted position in the utilities and communications sector aided the fund’s relative performance. No individual stocks within this sector were among the fund’s top relative contributors to performance for the reporting period.
Stock selection in the retail sector also boosted the fund’s relative results. Top relative contributors to fund performance within this sector included luxury goods companies LVMH Moët Hennessy Louis Vuitton S.A. (France), Compagnie Financiere Richemont S.A. (France) and Burberry Group P.L.C. (U.K.).
Stocks in other sectors that benefited relative fund performance included electrical distribution equipment manufacturer Schneider Electric S.A. (France), technology consulting firm Infosys Technologies Ltd. (India), industrial and medical gas producer Linde A.G. (Germany), banking group Standard Chartered P.L.C. (U.K.), insurance company AXA S.A. (France), brewer Heineken N.V. (Netherlands), and wealth management firm Julius Baer Holding Group Ltd. (Switzerland).
Our strategy uses a bottom-up investment style involving the research of the fundamentals of each individual opportunity and analyzing certain aspects of a company such as earnings, cash flows, growth potential and management abilities.
PL Small-Cap Value Fund (managed by NFJ Investment Group LLC)
Q. How did the fund perform over the year ended March 31, 2010?
A. For the year ended March 31, 2010, the fund’s Class A returned 58.28%, compared to a 65.07% return for its benchmark, the Russell 2000 Value Index.
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PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
The following graph shows the value as of March 31, 2010 of a $10,000 investment made in Class A shares since the fund began operations. For comparison purposes, the performance of the fund’s benchmark is also shown.
Performance Comparison
![(PERFORMANCE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-056340/p17732p1773210.gif)
Average Annual Total Returns for the Periods Ended March 31, 2010
PL Small-Cap Value Fund | Class A | |||
1 Year Total Return: | ||||
Without sales charge | 58.28 | % | ||
Russell 2000 Value Index | 65.07 | % | ||
Since Inception (June 29, 2007): | ||||
Without sales charge | -4.08 | % | ||
Russell 2000 Value Index | -6.98 | % |
Performance data shown represents past performance. Investment return and principal value will fluctuate so that shares of the fund when redeemed may be worth more or less than their original cost. Past performance is not predictive of future performance. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Q. Discuss both positive and negative factors that materially affected the fund’s performance during the year, including relevant market conditions, investment strategies and techniques, and particular sectors or securities.
A. For the year ended March 31, 2010, the fund underperformed the benchmark. The fund seeks long-term growth of capital and income through investment in the stocks of smaller-capitalization companies that pay dividends and that the manager believes are undervalued. Both the fund and its benchmark advanced significantly during the reporting period as a string of positive economic conditions caused U.S. stocks to rebound sharply from a deep bear market. The fund’s underweight position and stock selection decisions in the consumer discretionary sector contributed most significantly to its underperformance. An underweight position in the technology sector and stock selection decisions among materials stocks also detracted from returns versus the benchmark. An underweight position and stock selection decisions in the financials sector contributed positively to its relative returns as did an overweighting in the energy and materials sectors and stock selections among consumer staples companies.
Consumer discretionary stocks such as Phillips Van Heusen Corp. paced the rally among small-capitalization value stocks during the reporting period. Relative to the benchmark, automotive parts makers paced returns as analysts upgraded the group, predicting a multi-year upward trend in light vehicle sales worldwide. Higher sales volumes, combined with the steep cost-cutting initiatives of recent depressed years, improved the earnings outlook for the industry for the next couple of years.
In the materials sector, improving economic conditions and growing manufacturing output contributed to a shift in leadership during the period away from defensive, precious metals stocks and into economically sensitive companies producing paper, packaging and industrial inputs. Underweight positions in select paper and plastics makers, such as The Lubrizol Corp., contributed to the fund’s underperformance in this environment.
In the financials sector, REITs and specialty financial services firms outperformed the regional and local banks that comprise the most significant share of the benchmark. The fund’s exposure to office and industrial real estate and to retail cash advance services benefited returns versus the benchmark.
Among energy stocks, a firming of oil prices throughout the period boosted the fund’s holdings in energy exploration and production companies such as Cimarex Energy Co. relative to the stocks of refiners and fuel transporters.
We at NFJ expect equity returns to slow in coming months as investors weigh the potential for companies to improve profits in a slow growing economy. We believe the fund’s dividend income could provide a boost relative to the market in such a period of relatively flat returns. In this environment, we continue to invest in higher quality companies presenting attractive valuations, dividends, balance sheets and free cash flow generation.
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PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
PL Main Street® Core Fund (managed by OppenheimerFunds, Inc.)
Q. How did the fund perform over the year ended March 31, 2010?
A. For the year ended March 31, 2010, the fund’s Class A returned 48.57%, compared to a 49.77% return for its benchmark, the S&P 500 Index.
The following graph shows the value as of March 31, 2010 of a $10,000 investment made in Class A shares since the fund began operations. For comparison purposes, the performance of the fund’s benchmark is also shown.
Performance Comparison
![(PERFORMANCE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-056340/p17732p1773209.gif)
Average Annual Total Returns for the Periods Ended March 31, 2010
PL Main Street Core Fund | Class A | |||
1 Year Total Return: | ||||
Without sales charge | 48.57 | % | ||
S&P 500 Index | 49.77 | % | ||
3 Year Total Return: | ||||
Without sales charge | -5.29 | % | ||
S&P 500 Index | -4.17 | % | ||
Since Inception (September 30, 2005): | ||||
Without sales charge | -0.19 | % | ||
S&P 500 Index | 1.03 | % |
Performance data shown represents past performance. Investment return and principal value will fluctuate so that shares of the fund when redeemed may be worth more or less than their original cost. Past performance is not predictive of future performance. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Q. Discuss both positive and negative factors that materially affected the fund’s performance during the year, including relevant market conditions, investment strategies and techniques, and particular sectors or securities.
A. For the year ended March 31, 2010, the fund underperformed the benchmark during the reporting period. In May 2009, a new portfolio management team within Oppenheimer assumed responsibility for the fund. As the fund was restructured over the next several weeks, it was dramatically reduced in the number of holdings from more than 500 stocks to less than 75. This reduction in fund holdings occurred as we implemented a bottom-up investment process that combines fundamental research and quantitative models to identify companies that are attractively priced relative to their underlying business prospects. As a result of the new investment process, the fund’s relative performance during the reporting period was affected negatively due to the associated transaction expenses. We seek to find companies that provide asymmetrical risk/reward relationships—that is, typically, companies in which the potential upside substantially outweighs the downside are added.
Our new investment process identified a number of winners during the reporting period benefiting fund performance. For example, electronics innovator Apple, Inc. surged on the strength of popular products, such as the iPhone. Among energy companies, underweight exposure to industry giant Exxon Mobil Corp. helped bolster fund returns when investors turned away from traditionally defensive stocks. Instead, we emphasized smaller, more nimble energy producers that produced above-average returns for the fund, including Occidental Petroleum Corp. Other securities which benefited relative fund performance during the reporting period included stock in Hyatt Hotels Corp. (consumer discretionary sector), Precision Castparts Corp. (industrials sector) and Teva Pharmaceutical Industries Ltd. (health care sector).
On the other hand, disappointments during the reporting period that negatively impacted the fund’s performance included telecommunications equipment company QUALCOMM, Inc., as it suffered due to temporary pricing pressures despite what we believe to be positive long-term prospects for the company and its Code-Division Multiple Access (CDMA) cellular technology. Financial company State Street Corp. lagged due to quarterly shortfalls in its foreign exchange and securities lending businesses, which we believe represent temporary setbacks for a high-quality company with more potential for gains than risk of declines. Specialty retailer GameStop Corp. underperformed during the period, detracting from fund performance, as some of the company’s competitors cut prices on computer games during the 4th quarter to drive holiday traffic into their stores. Advance Auto Parts, Inc. also detracted from performance, as its stock price suffered as investors turned to less traditionally defensive stocks. The positions in GameStop and Advance Auto Parts were sold by period end.
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PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
As of March 31, 2010, we have been encouraged by evidence that investors are turning their attention away from beaten-down bargains among lower-quality companies toward businesses with strong fundamentals. Although we manage the fund using a bottom-up stock selection process and not according to broad economic trends, it is worth noting that investors now appear to be favoring companies with the underlying strength required to support earnings growth in a sluggish economy. In our judgment, our fundamentals-based approach may be particularly well suited to such an environment.
PL Emerging Markets Fund (managed by OppenheimerFunds, Inc.)
Q. How did the fund perform over the year ended March 31, 2010?
A. For the year ended March 31, 2010, the fund’s Class A returned 87.45%, compared to a 81.08% return for its benchmark, the MSCI Emerging Markets Index.
The following graph shows the value as of March 31, 2010 of a $10,000 investment made in Class A shares since the fund began operations. For comparison purposes, the performance of the fund’s benchmark is also shown.
Performance Comparison
![(PERFORMANCE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-056340/p17732p1773208.gif)
Average Annual Total Returns for the Periods Ended March 31, 2010
PL Emerging Markets Fund | Class A | |||
1 Year Total Return: | ||||
Without sales charge | 87.45 | % | ||
MSCI Emerging Markets Index | 81.08 | % | ||
3 Year Total Return: | ||||
Without sales charge | 8.22 | % | ||
MSCI Emerging Markets Index | 5.16 | % | ||
Since Inception (September 30, 2005): | ||||
Without sales charge | 13.32 | % | ||
MSCI Emerging Markets Index | 12.29 | % |
Performance data shown represents past performance. Investment return and principal value will fluctuate so that shares of the fund when redeemed may be worth more or less than their original cost. Past performance is not predictive of future performance. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Q. Discuss both positive and negative factors that materially affected the fund’s performance during the year, including relevant market conditions, investment strategies and techniques, and particular sectors or securities.
A. For the year ended March 31, 2010, the fund outperformed the benchmark during the reporting period. The fund’s outperformance was largely the result of relatively strong stock selection within the consumer staples, consumer discretionary, information technology, financials and health care sectors. The stronger relative stock selection was supported by an overweight position in consumer discretionary and an underweight position in health care. The fund underperformed within the materials sector, due to an underweight position to what was the strongest performing sector for the benchmark during the period.
In terms of relative performance by region, the fund outperformed the benchmark in all major regions, led by Asia Ex. Japan and Latin America, the two regions where the fund was most heavily invested. Within the Asian Ex. Japan region, the fund outperformed mostly due to better relative stock selection in China and Hong Kong and an overweight to India. Within Latin America, outperformance was mostly driven by the fund’s successful stock selection in Brazil. The third best performing region for the fund was the Middle East/Africa, where both underweights and stock selection resulted in the fund’s relative outperformance versus the benchmark.
Over the second half of the reporting period, we at Oppenheimer took advantage of relatively weak prices in America Movil S.A.B. de CV and Petroleo Brasileiro S.A. – two of the fund’s larger holdings – to increase positions materially which, in turn, benefited the fund’s performance. In the case of America Movil, the opportunity presented itself alongside a merger with its fixed line counterpart TELMEX, which was badly perceived on Wall Street. We believe the deal is insightful as infrastructure capacity will emerge as a significant competitive advantage as Latin America migrates towards a more data centric wireless world. In America Movil, we have a durable growth stock with tremendous economics, terrific managers and demonstrably superior capital allocation skills at what we consider a very attractive price. Also benefiting fund performance during the period, was the fund’s significant increase in Impala Platinum Holdings Ltd., NHN Corp. (a Korean internet company) and Infosys Technologies Ltd., our largest holding. Other individual contributors to fund performance during the reporting period included Magnit O.A.O., HDFC Bank Ltd., Lojas Americanas S.A. and Hong Kong Exchanges & Clearing Ltd.
A-24
PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
Our most significant sells during the reporting period were generally disappointments. In most cases, we believe we misjudged the opportunity set in these companies (China Unicom Ltd.) and/or were very disappointed with governance (SINA Corp., Gazprom O.A.O.).
Our underlying approach to investing in developing market equities has not changed in response to the current market environment. We are long-term investors in what we believe are great companies. We are interested in a rare breed of companies. We are not ‘yoyo’ investors that look for cycles everywhere, be it credit, inventory, business, etc. Instead, we are believers that great companies are extremely rare. Great businesses with long tailed, durable growth and massive advantage (high returns on capital employed) are, in our minds, exceptions in the emerging markets. Our approach to buy only stocks of exceptional companies, regardless of geography (country weights) persists.
While our philosophy of investing has remained the same, two things stay fluid. First, prices (valuations on offer) change, which present opportunities and accounts for most of a fund’s activity during a particular period. And, second, we learn. This may involve the rare opportunity to locate a new great company or it may involve exiting stocks because we misjudged the opportunity.
PL Managed Bond Fund (managed by Pacific Investment Management Company LLC)
Q. How did the fund perform over the year ended March 31, 2010?
A. For the year ended March 31, 2010, the fund’s Class A returned 18.68%, compared to a 7.69% return for its benchmark, the Barclays Capital U.S. Aggregate Bond Index.
The following graph shows the value as of March 31, 2010 of a $10,000 investment made in Class A shares since the fund began operations. For comparison purposes, the performance of the fund’s benchmark is also shown.
Performance Comparison
![(PERFORMANCE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-056340/p17732p1773207.gif)
Average Annual Total Returns for the Periods Ended March 31, 2010
PL Managed Bond Fund | Class A | |||
1 Year Total Return: | ||||
Without sales charge | 18.68 | % | ||
With maximum sales charge | 12.20 | % | ||
Barclays Capital U.S. Aggregate Bond Index | 7.69 | % | ||
5 Year Total Return: | ||||
Without sales charge | 7.06 | % | ||
With maximum sales charge | 5.86 | % | ||
Barclays Capital U.S. Aggregate Bond Index | 5.44 | % | ||
Since Inception (September 28, 2001): | ||||
Without sales charge | 6.37 | % | ||
With maximum sales charge | 5.67 | % | ||
Barclays Capital U.S. Aggregate Bond Index | 5.32 | % |
Performance data shown represents past performance. Investment return and principal value will fluctuate so that shares of the fund when redeemed may be worth more or less than their original cost. Past performance is not predictive of future performance. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Q. Discuss both positive and negative factors that materially affected the fund’s performance during the year, including relevant market conditions, investment strategies and techniques, and particular sectors or securities.
A. For the year ended March 31, 2010, the fund outperformed the benchmark. An overweight to agency Mortgage-Backed Securities (MBS) early in the period added to the fund’s returns as this sector outperformed like-duration Treasuries, and valuations of these bonds benefitted from government policy responses. A slight underweight position to investment grade corporate debt detracted from the fund’s performance as the sector outperformed like-duration Treasuries. However, a focus on the financials within the investment grade corporate sector more than offset this negative impact to the fund as this sector outperformed the overall investment grade corporate market thereby contributing to fund performance. Additionally, exposure to bonds of emerging markets added to fund performance as emerging market debt followed the rally in equities and other spread sectors, significantly outperforming like-duration Treasuries. An overweight to Treasury duration for part of the year detracted from fund returns as Treasury yields rose over the year.
A-25
PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
Two core themes create tension and uncertainty in PIMCO’s economic outlook over the next year. First, we continue to expect differentiated regional outcomes owing to disparate pre-crisis conditions. Second, positive trends in developed economies such as the U.S. over a cyclical timeframe are likely to face structural or secular headwinds such as high levels of sovereign and consumer debt and excess capacity in labor and product markets. This tension between cyclical and structural factors will likely be exacerbated by political processes around the world, which means that politics is one of the most critical risk factors in our outlook. PIMCO remains cautious with portfolio risk exposures in light of global economic uncertainty and relatively rich valuations for many fixed income assets, but we do believe that there are a number of prudent strategies available to enhance return potential.
With regard to portfolio strategy, we plan to target an overall overweight to duration, but this will come from exposure to core European interest rates and a modest allocation to Canada and Brazil, as we believe such exposure offers relatively attractive yields but potentially lower volatility than a comparable U.S. position. We also plan to emphasize shorter maturities in the U.S. and Europe, especially those that are somewhat longer in duration than where money market funds typically invest as it is our opinion that markets are pricing in more and faster central bank tightening than we expect. Additionally, we look to maintain an underweight to agency MBS, which are trading near their most expensive levels ever. Better opportunities to own these securities could arise following the end of the Fed’s Mortgage Purchase Program.
PL Inflation Managed Fund (managed by Pacific Investment Management Company LLC)
Q. How did the fund perform over the year ended March 31, 2010?
A. For the year ended March 31, 2010, the fund’s Class A returned 9.68%, compared to a 6.18% return for its benchmark, the Barclays Capital U.S. TIPS Index.
The following graph shows the value as of March 31, 2010 of a $10,000 investment made in Class A shares since the fund began operations. For comparison purposes, the performance of the fund’s benchmark is also shown.
Performance Comparison
![(PERFORMANCE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-056340/p17732p1773206.gif)
Average Annual Total Returns for the Periods Ended March 31, 2010
PL Inflation Managed Fund | Class A | |||
1 Year Total Return: | ||||
Without sales charge | 9.68 | % | ||
With maximum sales charge | 3.63 | % | ||
Barclays Capital U.S. TIPS Index | 6.18 | % | ||
5 Year Total Return: | ||||
Without sales charge | 4.65 | % | ||
With maximum sales charge | 3.48 | % | ||
Barclays Capital U.S. TIPS Index | 4.82 | % | ||
Since Inception (December 31, 2002): | ||||
Without sales charge | 5.41 | % | ||
With maximum sales charge | 4.59 | % | ||
Barclays Capital U.S. TIPS Index | 5.58 | % |
Performance data shown represents past performance. Investment return and principal value will fluctuate so that shares of the fund when redeemed may be worth more or less than their original cost. Past performance is not predictive of future performance. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Q. Discuss both positive and negative factors that materially affected the fund’s performance during the year, including relevant market conditions, investment strategies and techniques, and particular sectors or securities.
A. For the year ended March 31, 2010, the fund outperformed the benchmark. Exposure to agency MBS was positive for fund performance as the success of the Fed’s Mortgage Purchase Program drove yield premiums over Treasuries to tighten. An allocation to high quality consumer ABS added to the fund’s annual performance as these bonds also rallied amid strong government policy support. Corporate bonds, especially an emphasis on bonds of financial companies, also added to fund performance and were among the best performing fixed income assets during the reporting period. An underweight position to shorter maturity TIPS detracted from the fund’s returns as real yields declined on better than expected economic data. Above index total duration, stemming from U.S. nominal bonds, also detracted from fund performance over the year as nominal interest rates rose.
A-26
PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
Two core themes create tension and uncertainty in PIMCO’s economic outlook over the next year. First, we continue to expect differentiated regional outcomes owing to disparate pre-crisis conditions. Second, positive trends in developed economies such as the U.S. over a cyclical timeframe are likely to face structural or secular headwinds such as high levels of sovereign and consumer debt and excess capacity in labor and product markets. This tension between cyclical and structural factors will likely be exacerbated by political processes around the world, which means that politics is one of the most critical risk factors in our outlook. PIMCO remains cautious with portfolio risk exposures in light of global economic uncertainty and relatively rich valuations for many fixed income assets, but we do believe that there are a number of prudent strategies available to enhance return potential.
With regard to portfolio strategy, we plan to target flat to modestly overweight duration, with an emphasis on intermediate maturity European interest rates, as we believe this exposure currently offers relatively attractive yields with lower potential volatility than a comparable U.S. position. We also plan to retain modest exposure to money market futures in the U.S. as short-term rates are unlikely to rise with the Fed on hold as it is our opinion that markets are pricing in more central bank tightening than we expect. We plan to retain modest exposure to corporate financial bonds, where valuations remain relatively attractive, and look to boost yield by earning premiums on written options. Additionally, we plan to hold currencies with sound fiscal conditions such as Australia and Canada, as well as Asian currencies that could gain versus the U.S. dollar.
PL Large-Cap Growth Fund (managed by UBS Global Asset Management (Americas), Inc.)
Q. How did the fund perform over the year ended March 31, 2010?
A. For the year ended March 31, 2010, the fund’s Class A returned 41.73%, compared to a 49.75% return for its benchmark, the Russell 1000 Growth Index.
The following graph shows the value as of March 31, 2010 of a $10,000 investment made in Class A shares since the fund began operations. For comparison purposes, the performance of the fund’s benchmark is also shown.
Performance Comparison
![(PERFORMANCE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-056340/p17732p1773205.gif)
Average Annual Total Returns for the Periods Ended March 31, 2010
PL Large-Cap Growth Fund | Class A | |||
1 Year Total Return: | ||||
Without sales charge | 41.73 | % | ||
With maximum sales charge | 33.85 | % | ||
Russell 1000 Growth Index | 49.75 | % | ||
5 Year Total Return: | ||||
Without sales charge | -3.39 | % | ||
With maximum sales charge | -4.48 | % | ||
Russell 1000 Growth Index | 3.42 | % | ||
Since Inception (September 28, 2001): | ||||
Without sales charge | -1.80 | % | ||
With maximum sales charge | -2.44 | % | ||
Russell 1000 Growth Index | 3.13 | % |
Performance data shown represents past performance. Investment return and principal value will fluctuate so that shares of the fund when redeemed may be worth more or less than their original cost. Past performance is not predictive of future performance. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Q. Discuss both positive and negative factors that materially affected the fund’s performance during the year, including relevant market conditions, investment strategies and techniques, and particular sectors or securities.
A. UBS assumed management of the fund on July 1, 2009. For the period July 1, 2009 through March 31, 2010, the fund outperformed the benchmark. The fund’s gains remained broad-based during the period as equity markets continued to rally off the depressed lows from a year earlier, signaling confidence that the worst of the crisis has passed and the recovery is under way. Stock selection and sector allocation each contributed positively to fund performance during the period. In particular, stock selection within information technology, health care and consumer discretionary were the main contributors to fund performance.
As the equity markets continued to rebound, firms within the information technology sector showed tremendous resiliency in their ability to maintain profitability and even grow their revenue during a challenging environment. During the reporting period, firms with
A-27
PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
recurring revenue streams and secular product growth trends had been in favor as compared to their more cyclical peers. The fund’s investment in some of the better performing companies contributed positively to performance. Within the information technology sector, the fund’s overweights to Apple, Inc., MasterCard, Inc., salesforce.com, inc., and Visa, Inc. were some of the better performing companies and were the main drivers for positive fund performance in the sector.
While the rebound in consumer discretionary was a little premature in UBS’ assessment, there were select opportunities to invest in companies with superior business models and an underappreciated potential for future growth. Included in that class are internet resellers Amazon.com, Inc. and Priceline.com, Inc., both of which have extremely scalable business models and are superior plays on a cost conscious consumer. In our view, meaningful positions in each of those names made significant positive contributions to performance throughout the reporting period.
With the prospect for historic health care reform in Washington D.C. on again and off again seemingly on a weekly basis, investing in the health care sector during the reporting period was challenging. During this period, we focused on companies who had dominant positions in their market, with often superior competitive advantages that could potentially be maintained if even the most draconian reforms had been passed. Companies such as Alcon, Inc., Allergan, Inc. and Express Scripts, Inc. fall into this category and contributed positively towards the fund’s performance.
While stock selection for the fund in its entirety was a positive during the period, there were one or two pockets of weakness where the fund’s holdings underperformed. The financials sector makes up a relatively small percentage of the fund’s benchmark; however concerns about regulation of futures contracts caused two of the fund’s holdings to lag during the period. Specifically, IntercontinenalExchange, Inc. and CME Group, Inc. trailed as fears that futures market regulators will limit trading volumes on energy futures contracts. We believe these fears are unfounded and thus maintain our holdings in the companies as future earnings growth is not fully reflected in their current share prices.
PL Comstock Fund (managed by Van Kampen)
Q. How did the fund perform over the year ended March 31, 2010?
A. For the year ended March 31, 2010, the fund’s Class A returned 55.34%, compared to a 53.55% return for its benchmark, the Russell 1000 Value Index.
The following graph shows the value as of March 31, 2010 of a $10,000 investment made in Class A shares since the fund began operations. For comparison purposes, the performance of the fund’s benchmark is also shown.
Performance Comparison
![(PERFORMANCE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-056340/p17732p1773204.gif)
Average Annual Total Returns for the Periods Ended March 31, 2010
PL Comstock Fund | Class A | |||
1 Year Total Return: | ||||
Without sales charge | 55.34 | % | ||
With maximum sales charge | 46.89 | % | ||
Russell 1000 Value Index | 53.55 | % | ||
5 Year Total Return: | ||||
Without sales charge | -0.32 | % | ||
With maximum sales charge | -1.43 | % | ||
Russell 1000 Value Index | 1.05 | % | ||
Since Inception (September 28, 2001): | ||||
Without sales charge | 2.72 | % | ||
With maximum sales charge | 2.04 | % | ||
Russell 1000 Value Index | 4.46 | % |
Performance data shown represents past performance. Investment return and principal value will fluctuate so that shares of the fund when redeemed may be worth more or less than their original cost. Past performance is not predictive of future performance. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Q. Discuss both positive and negative factors that materially affected the fund’s performance during the year, including relevant market conditions, investment strategies and techniques, and particular sectors or securities.
A-28
PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
A. For the year ended March 31, 2010, the fund outperformed the benchmark. Its outperformance was driven primarily by positioning within three sectors: energy, basic materials, and utilities. The fund is constructed entirely on a bottom-up basis, with the sector allocations a result of the stock selection process. A significant underweight in the energy sector benefited relative fund performance as the sector as a whole broadly underperformed the benchmark during the period. During the reporting period, we, the fund’s portfolio managers at VanKampen, selectively added to the fund’s position in energy stocks, mainly in the integrated oil industry, that we believed fit our investment criteria. In the basic materials sector, stock selection contributed positively to the fund’s relative returns. Here, the fund’s position in International Paper Co. performed well after the company restructured its debt, strengthened its balance sheet, and benefited from synergies following an acquisition. Finally, relative fund performance was aided by minimal exposure to the utilities sector, where the fund held only one utility stock during the period. The utilities sector was the second worst performer relative to the benchmark for the period.
In contrast, the financials sector dampened the fund’s relative performance. Its mix of banks, diversified financial companies, and insurance companies lagged (underweights in Bank of America Corp., Wells Fargo & Co. and The Goldman Sachs Group, Inc. hurt the fund’s performance the most), and a lack of exposure to real estate (which performed strongly during the period) further diminished fund relative performance. The health care sector also detracted from fund performance on a relative basis. Within the sector, the fund did not have exposure to a strong performing large-capitalization pharmaceutical and health care products company, Johnson and Johnson.
The fund continued to seek stocks with reasonable valuations relative to our assessment of fair value. As of March 31, 2010, the fund held overweights relative to the benchmark in consumer discretionary, consumer staples, health care and technology sectors. The fund was underweight in energy, financials, industrials, telecommunications services and utilities sectors. The basic materials sector represented a roughly equal weight with the benchmark.
PL Mid-Cap Growth Fund (managed by Van Kampen)
Q. How did the fund perform over the year ended March 31, 2010?
A. For the year ended March 31, 2010, the fund’s Class A returned 70.89%, compared to a 63.00% return for its benchmark, the Russell Midcap Growth Index.
The following graph shows the value as of March 31, 2010 of a $10,000 investment made in Class A shares since the fund began operations. For comparison purposes, the performance of the fund’s benchmark is also shown.
Performance Comparison
![(PERFORMANCE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-056340/p17732p1773203.gif)
Average Annual Total Returns for the Periods Ended March 31, 2010
PL Mid-Cap Growth Fund | Class A | |||
1 Year Total Return: | ||||
Without sales charge | 70.89 | % | ||
With maximum sales charge | 61.49 | % | ||
Russell Midcap Growth Index | 63.00 | % | ||
5 Year Total Return: | ||||
Without sales charge | 7.31 | % | ||
With maximum sales charge | 6.10 | % | ||
Russell Midcap Growth Index | 4.27 | % | ||
Since Inception (September 28, 2001): | ||||
Without sales charge | 4.49 | % | ||
With maximum sales charge | 3.80 | % | ||
Russell Midcap Growth Index | 7.46 | % |
Performance data shown represents past performance. Investment return and principal value will fluctuate so that shares of the fund when redeemed may be worth more or less than their original cost. Past performance is not predictive of future performance. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Q. Discuss both positive and negative factors that materially affected the fund’s performance during the year, including relevant market conditions, investment strategies and techniques, and particular sectors or securities.
A. For the year ended March 31, 2010, the fund outperformed the benchmark. Stock selection and an overweight position in the consumer discretionary sector had the largest positive effect on relative fund performance. Relative gains in the sector were driven primarily by the leisure time industry, specifically the portfolio holding Ctrip.com International Ltd. Both stock selection and an underweight
A-29
PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
position in the technology sector also helped relative fund performance. Here, the computer services software and systems industry, specifically the portfolio holding Baidu, Inc., was the most additive to the fund’s performance. In the utilities sector, stock selection and an underweight position were also advantageous to relative fund performance. Within the sector, the telecommunications industry, specifically the portfolio holding Millicom International Cellular S.A., was the leading contributing industry to fund performance.
Although the fund outperformed the benchmark, there were areas detrimental to its overall performance. The largest relative detractor from fund performance was stock selection in the energy sector, although it was slightly offset by an overweight position in the sector. While none of the fund’s energy holdings (largely in the natural gas industry) had negative returns during the period on an absolute basis, they did not perform as well as other industries within the overall sector such as oil well equipment and services, in which the fund did not have any exposure. The fund holding that underperformed the most was Petrohawk Energy Corp. Elsewhere, both stock selection and an underweight in the health care sector dampened fund performance, mainly due to the medical equipment industry and specifically the portfolio holding, Illumina, Inc. The financial services sector also underperformed, as both stock selection and an overweight position were relative laggards impacting the fund negatively. Within the sector, the asset management and custodian industry was the chief detractor from fund performance.
The start of 2010 has been volatile. The fund’s portfolio managers at VanKampen do not make predictions on how the market will perform, and it is our belief that volatility alone does not measure risk. Overall, we remain optimistic and committed to our long-term outlook. We continue to focus on company fundamentals – quality, the nature and sustainability of competitive advantage, and balance sheet strength – over a three- to five-year period.
PL Real Estate Fund (managed by Van Kampen)
Q. How did the fund perform over the year ended March 31, 2010?
A. For the year ended March 31, 2010, the fund’s Class A returned 104.32%, compared to a 106.68% return for its benchmark, the FTSE NAREIT Equity REITs Index.
The following graph shows the value as of March 31, 2010 of a $10,000 investment made in Class A shares since the fund began operations. For comparison purposes, the performance of the fund’s benchmark is also shown.
Performance Comparison
![(PERFORMANCE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-056340/p17732p1773202.gif)
Average Annual Total Returns for the Periods Ended March 31, 2010
PL Real Estate Fund | Class A | |||
1 Year Total Return: | ||||
Without sales charge | 104.32 | % | ||
With maximum sales charge | 92.97 | % | ||
FTSE NAREIT Equity REITs Index | 106.68 | % | ||
5 Year Total Return: | ||||
Without sales charge | 4.06 | % | ||
With maximum sales charge | 2.88 | % | ||
FTSE NAREIT Equity REITs Index | 3.80 | % | ||
Since Inception (December 31, 2004): | ||||
Without sales charge | 2.65 | % | ||
With maximum sales charge | 1.56 | % | ||
FTSE NAREIT Equity REITs Index | 2.18 | % |
Performance data shown represents past performance. Investment return and principal value will fluctuate so that shares of the fund when redeemed may be worth more or less than their original cost. Past performance is not predictive of future performance. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Q. Discuss both positive and negative factors that materially affected the fund’s performance during the year, including relevant market conditions, investment strategies and techniques, and particular sectors or securities.
A. For the year ended March 31, 2010, the fund underperformed the benchmark. Stock selection was strong in the diversified, health care, apartment and hotel sectors; however, this was offset by stock selection in the shopping center and mall sectors. From a top-down perspective, the fund benefited from an overweight position in the hotel sector. The fund’s exposure to cash served as a drag on its performance due to the strong market rally.
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PACIFIC LIFE FUNDS PERFORMANCE DISCUSSION (Continued)
The portfolio managers at Van Kampen have maintained their core investment philosophy as a real estate value investor. This results in the ownership of stocks whose share prices are believed to provide real estate exposure at the best valuation relative to their underlying asset values. Given the continued lack of clarity on underlying asset values due to the stagnant investment market, we have focused on relative implied valuations as a key metric. Our company-specific research led us to an overweighting in the fund to a group of companies that are focused in the ownership of apartment properties and upscale urban hotels and an underweighting to companies concentrated in the ownership of industrial and suburban office assets.
Following the remarkable improvements in the capital markets over the course of 2009, we believe REITs have ready access to both equity capital and unsecured corporate debt at attractive costs. This is in sharp contrast to most private real estate operators. As a result, REITs are viewed as the group that is best positioned to take advantage of acquisition opportunities.
We believe that at current premium valuations, it appears that the market is anticipating that asset values may not decline from the peak as much as currently expected, and/or the market is attempting to price or factor in the favorable benefits to REITs having unique access to capital and being able to take advantage of the arbitrage opportunity between public and private valuations by making acquisitions. In addition, some analysts have noted that the current valuation of the REIT sector appears fairly priced on both a current and historical basis relative to investment grade bonds.
A-31
PACIFIC LIFE FUNDS
DISCLOSURE OF FUND EXPENSES
(Unaudited)
We believe it is important for you to understand the impact of fees and expenses regarding your investment. All mutual funds have operating expenses. As a shareholder of a mutual fund, you incur two types of costs: (1) transactions costs such as initial sales charges (loads) on purchase payments and/or contingent deferred sales charges on redemptions; and (2) ongoing costs, which include advisory fees, administration fees, distribution and/or service fees, and other fund expenses. The following example is intended to help you understand your ongoing costs (in dollars) of investing in each fund and to compare these costs with those of other mutual funds. The example is based on an investment of $1,000.00 made at the beginning of the period and held for the entire six-month period from October 1, 2009 to March 31, 2010.
ACTUAL EXPENSES
The first section of the table for each fund entitled “Actual Fund Return”, provides information about actual account values and actual expenses based on each fund’s actual performance and each fund’s actual expenses, after any applicable adviser expense reimbursement, administrator fee reductions, advisory fee, and distribution and/or service fee waivers. The “Ending Account Value at 03/31/10” column shown is derived from the fund’s actual performance; the “Annualized Expense Ratio” column shows the fund’s actual annualized expense ratio; and the “Expenses Paid During the Period 10/01/09-03/31/10” column shows the dollar amount that would have been paid by you. All the information illustrated in the following table is based on the past six-month period from October 1, 2009 to March 31, 2010.
You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, for each fund in your account, simply divide that fund’s value by $1,000.00 (for example, an $8,600.00 fund value divided by $1,000.00 = 8.6), then multiply the result by the number given for your fund(s) in the “Expenses Paid During the Period 10/01/09-03/31/10.”
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table for each fund, entitled “Hypothetical”, provides information about hypothetical account values and hypothetical expenses based on a 5% per year hypothetical rate of return and actual fund’s expenses, after any applicable adviser expense reimbursement, administrator fee reductions, and distributor fee waivers. It assumes that the fund had an annual 5% rate of return before expenses, but that the expense ratio is unchanged. The hypothetical account values and expenses may not be used to estimate the actual ending account values or expenses you paid for the period.
You may use the hypothetical example information to compare the ongoing costs of investing in the fund compared to other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other mutual funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as initial sales charges (loads) or contingent deferred sales charges. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different mutual funds. In addition, if these other costs were included, your costs would have been higher.
Expenses | ||||||||||||||||
Beginning | Ending | Paid During | ||||||||||||||
Account | Account | Annualized | the Period (1) | |||||||||||||
Value at | Value at | Expense | 10/01/09 - | |||||||||||||
10/01/09 | 03/31/10 | Ratio | 03/31/10 | |||||||||||||
PL Portfolio Optimization Conservative Fund (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,047.60 | 0.20 | % | $ | 1.02 | ||||||||
Class B | 1,000.00 | 1,045.00 | 0.95 | % | 4.84 | |||||||||||
Class C | 1,000.00 | 1,044.30 | 0.95 | % | 4.84 | |||||||||||
Class R | 1,000.00 | 1,047.30 | 0.45 | % | 2.30 | |||||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,023.93 | 0.20 | % | $ | 1.01 | ||||||||
Class B | 1,000.00 | 1,020.19 | 0.95 | % | 4.78 | |||||||||||
Class C | 1,000.00 | 1,020.19 | 0.95 | % | 4.78 | |||||||||||
Class R | 1,000.00 | 1,022.69 | 0.45 | % | 2.27 | |||||||||||
PL Portfolio Optimization Moderate-Conservative Fund (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,059.30 | 0.20 | % | $ | 1.03 | ||||||||
Class B | 1,000.00 | 1,056.70 | 0.95 | % | 4.87 | |||||||||||
Class C | 1,000.00 | 1,056.70 | 0.95 | % | 4.87 | |||||||||||
Class R | 1,000.00 | 1,058.00 | 0.45 | % | 2.31 | |||||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,023.93 | 0.20 | % | $ | 1.01 | ||||||||
Class B | 1,000.00 | 1,020.19 | 0.95 | % | 4.78 | |||||||||||
Class C | 1,000.00 | 1,020.19 | 0.95 | % | 4.78 | |||||||||||
Class R | 1,000.00 | 1,022.69 | 0.45 | % | 2.27 | |||||||||||
PL Portfolio Optimization Moderate Fund (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,076.60 | 0.20 | % | $ | 1.04 | ||||||||
Class B | 1,000.00 | 1,073.10 | 0.95 | % | 4.91 | |||||||||||
Class C | 1,000.00 | 1,073.20 | 0.95 | % | 4.91 | |||||||||||
Class R | 1,000.00 | 1,075.30 | 0.45 | % | 2.33 | |||||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,023.93 | 0.20 | % | $ | 1.01 | ||||||||
Class B | 1,000.00 | 1,020.19 | 0.95 | % | 4.78 | |||||||||||
Class C | 1,000.00 | 1,020.19 | 0.95 | % | 4.78 | |||||||||||
Class R | 1,000.00 | 1,022.69 | 0.45 | % | 2.27 | |||||||||||
PL Portfolio Optimization Moderate-Aggressive Fund (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,088.10 | 0.20 | % | $ | 1.04 | ||||||||
Class B | 1,000.00 | 1,084.90 | 0.95 | % | 4.94 | |||||||||||
Class C | 1,000.00 | 1,086.20 | 0.95 | % | 4.94 | |||||||||||
Class R | 1,000.00 | 1,087.70 | 0.45 | % | 2.34 | |||||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,023.93 | 0.20 | % | $ | 1.01 | ||||||||
Class B | 1,000.00 | 1,020.19 | 0.95 | % | 4.78 | |||||||||||
Class C | 1,000.00 | 1,020.19 | 0.95 | % | 4.78 | |||||||||||
Class R | 1,000.00 | 1,022.69 | 0.45 | % | 2.27 |
B-1 | See explanation of references on page B-3 |
PACIFIC LIFE FUNDS
DISCLOSURE OF FUND EXPENSES (Continued)
(Unaudited)
DISCLOSURE OF FUND EXPENSES (Continued)
(Unaudited)
�� | ||||||||||||||||
Expenses | ||||||||||||||||
Beginning | Ending | Paid During | ||||||||||||||
Account | Account | Annualized | the Period (1) | |||||||||||||
Value at | Value at | Expense | 10/01/09 - | |||||||||||||
10/01/09 | 03/31/10 | Ratio | 03/31/10 | |||||||||||||
PL Portfolio Optimization Aggressive Fund (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,099.00 | 0.20 | % | $ | 1.05 | ||||||||
Class B | 1,000.00 | 1,096.40 | 0.95 | % | 4.97 | |||||||||||
Class C | 1,000.00 | 1,096.40 | 0.95 | % | 4.97 | |||||||||||
Class R | 1,000.00 | 1,097.30 | 0.45 | % | 2.35 | |||||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,023.93 | 0.20 | % | $ | 1.01 | ||||||||
Class B | 1,000.00 | 1,020.19 | 0.95 | % | 4.78 | |||||||||||
Class C | 1,000.00 | 1,020.19 | 0.95 | % | 4.78 | |||||||||||
Class R | 1,000.00 | 1,022.69 | 0.45 | % | 2.27 | |||||||||||
PL Money Market Fund | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,000.30 | 0.26 | % | $ | 1.30 | ||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,023.64 | 0.26 | % | $ | 1.31 | ||||||||
PL Small-Cap Growth Fund | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,147.60 | 1.15 | % | $ | 6.16 | ||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,019.20 | 1.15 | % | $ | 5.79 | ||||||||
PL International Value Fund | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,008.70 | 1.20 | % | $ | 6.01 | ||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,018.95 | 1.20 | % | $ | 6.04 | ||||||||
PL Large-Cap Value Fund | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,087.60 | 1.20 | % | $ | 6.25 | ||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,018.95 | 1.20 | % | $ | 6.04 | ||||||||
PL Short Duration Bond Fund | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,012.30 | 0.95 | % | $ | 4.77 | ||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,020.19 | 0.95 | % | $ | 4.78 | ||||||||
PL Floating Rate Loan Fund | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,065.60 | 1.30 | % | $ | 6.69 | ||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,018.45 | 1.30 | % | $ | 6.54 | ||||||||
PL Growth LT Fund | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,099.00 | 1.10 | % | $ | 5.76 | ||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,019.45 | 1.10 | % | $ | 5.54 | ||||||||
PL Mid-Cap Equity Fund | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,141.80 | 1.20 | % | $ | 6.41 | ||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,018.95 | 1.20 | % | $ | 6.04 | ||||||||
PL International Large-Cap Fund | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,057.60 | 1.40 | % | $ | 7.18 | ||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,017.95 | 1.40 | % | $ | 7.04 | ||||||||
PL Small-Cap Value Fund | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,145.10 | 1.30 | % | $ | 6.95 | ||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,018.45 | 1.30 | % | $ | 6.54 | ||||||||
PL Main Street Core Fund | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,106.40 | 1.00 | % | $ | 5.25 | ||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,019.95 | 1.00 | % | $ | 5.04 | ||||||||
PL Emerging Markets Fund | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,121.60 | 1.35 | % | $ | 7.14 | ||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,018.20 | 1.35 | % | $ | 6.79 | ||||||||
PL Managed Bond Fund | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,040.80 | 0.95 | % | $ | 4.83 | ||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,020.19 | 0.95 | % | $ | 4.78 | ||||||||
PL Inflation Managed Fund | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,029.20 | 0.95 | % | $ | 4.81 | ||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,020.19 | 0.95 | % | $ | 4.78 | ||||||||
PL Large-Cap Growth Fund | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,140.50 | 1.28 | % | $ | 6.83 | ||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,018.55 | 1.28 | % | $ | 6.44 | ||||||||
PL Comstock Fund | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,107.80 | 1.30 | % | $ | 6.83 | ||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,018.45 | 1.30 | % | $ | 6.54 |
B-2 | See explanation of references on page B-3 |
PACIFIC LIFE FUNDS
DISCLOSURE OF FUND EXPENSES (Continued)
(Unaudited)
DISCLOSURE OF FUND EXPENSES (Continued)
(Unaudited)
Expenses | ||||||||||||||||
Beginning | Ending | Paid During | ||||||||||||||
Account | Account | Annualized | the Period (1) | |||||||||||||
Value at | Value at | Expense | 10/01/09 - | |||||||||||||
10/01/09 | 03/31/10 | Ratio | 03/31/10 | |||||||||||||
PL Mid-Cap Growth Fund | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,111.00 | 1.25 | % | $ | 6.58 | ||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,018.70 | 1.25 | % | $ | 6.29 | ||||||||
PL Real Estate Fund | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,199.80 | 1.45 | % | $ | 7.95 | ||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,017.70 | 1.45 | % | $ | 7.29 |
(1) | Expenses paid during the period are equal to the fund’s annualized expense ratio (shown in table above), multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 365 days. | |
(2) | The annualized expense ratios for the Portfolio Optimization Funds do not include expenses of the Underlying Funds (see Note 1 in Notes to Financial Statements) in which the Portfolio Optimization Funds invest. |
B-3
PACIFIC LIFE FUNDS
PL PORTFOLIO OPTIMIZATION CONSERVATIVE FUND
PL PORTFOLIO OPTIMIZATION CONSERVATIVE FUND
Schedule of Investments
March 31, 2010
Shares | Value | |||||||
AFFILIATED MUTUAL FUNDS - 99.1% | ||||||||
PL International Value Fund ‘A’ | 386,653 | $ | 3,553,342 | |||||
PL Large-Cap Value Fund ‘A’ | 817,019 | 8,513,338 | ||||||
PL Short Duration Bond Fund ‘A’ | 2,119,505 | 21,195,054 | ||||||
PL Floating Rate Loan Fund ‘A’ | 1,411,836 | 13,948,940 | ||||||
PL Growth LT Fund ‘A’ | 297,443 | 3,334,336 | ||||||
PL Mid-Cap Equity Fund ‘A’ | 602,617 | 5,218,666 | ||||||
PL International Large-Cap Fund ‘A’ | 237,677 | 3,287,070 | ||||||
PL Main Street® Core Fund ‘A’ | 367,377 | 3,306,392 | ||||||
PL Managed Bond Fund ‘A’ | 5,378,702 | 57,821,043 | ||||||
PL Inflation Managed Fund ‘A’ | 2,712,790 | 27,399,176 | ||||||
PL Large-Cap Growth Fund ‘A’ * | 469,000 | 3,615,993 | ||||||
PL Comstock Fund ‘A’ | 491,066 | 5,249,495 | ||||||
Total Affiliated Mutual Funds (Cost $145,609,309) | 156,442,845 | |||||||
SHORT-TERM INVESTMENT - 0.2% | ||||||||
Money Market Fund - 0.2% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 243,392 | 243,392 | ||||||
Total Short-Term Investment (Cost $243,392) | 243,392 | |||||||
TOTAL INVESTMENTS - 99.3% (Cost $145,852,701) | 156,686,237 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.7% | 1,179,358 | |||||||
NET ASSETS - 100.0% | $ | 157,865,595 | ||||||
Notes to Schedule of Investments
(a) | As of March 31, 2010, the Fund was diversified as a percentage of net assets as follows: |
Affiliated Fixed Income Funds | 76.2 | % | ||
Affiliated Equity Funds | 22.9 | % | ||
Short-Term Investment | 0.2 | % | ||
99.3 | % | |||
Other Assets & Liabilities, Net | 0.7 | % | ||
100.0 | % | |||
PACIFIC LIFE FUNDS
PL PORTFOLIO OPTIMIZATION MODERATE-CONSERVATIVE FUND
Schedule of Investments
March 31, 2010
PL PORTFOLIO OPTIMIZATION MODERATE-CONSERVATIVE FUND
Schedule of Investments
March 31, 2010
Shares | Value | |||||||
AFFILIATED MUTUAL FUNDS - 100.0% | ||||||||
�� | ||||||||
PL International Value Fund ‘A’ | 608,591 | $ | 5,592,955 | |||||
PL Large-Cap Value Fund ‘A’ | 1,178,301 | 12,277,896 | ||||||
PL Short Duration Bond Fund ‘A’ | 1,872,839 | 18,728,389 | ||||||
PL Floating Rate Loan Fund ‘A’ | 1,257,862 | 12,427,676 | ||||||
PL Growth LT Fund ‘A’ | 471,271 | 5,282,950 | ||||||
PL Mid-Cap Equity Fund ‘A’ | 767,109 | 6,643,164 | ||||||
PL International Large-Cap Fund ‘A’ | 670,385 | 9,271,422 | ||||||
PL Small-Cap Value Fund ‘A’ | 181,913 | 1,558,992 | ||||||
PL Main Street Core Fund ‘A’ | 1,407,511 | 12,667,594 | ||||||
PL Managed Bond Fund ‘A’ | 4,209,749 | 45,254,807 | ||||||
PL Inflation Managed Fund ‘A’ | 2,345,395 | 23,688,489 | ||||||
PL Large-Cap Growth Fund ‘A’ * | 713,711 | 5,502,715 | ||||||
PL Comstock Fund ‘A’ | 998,624 | 10,675,296 | ||||||
PL Mid-Cap Growth Fund ‘A’ | 392,553 | 3,301,373 | ||||||
Total Affiliated Mutual Funds (Cost $165,300,989) | 172,873,718 | |||||||
SHORT-TERM INVESTMENT - 0.1% | ||||||||
Money Market Fund - 0.1% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 222,192 | 222,192 | ||||||
Total Short-Term Investment (Cost $222,192) | 222,192 | |||||||
TOTAL INVESTMENTS - 100.1% (Cost $165,523,181) | 173,095,910 | |||||||
OTHER ASSETS & LIABILITIES, NET — (0.1%) | (170,214 | ) | ||||||
NET ASSETS - 100.0% | $ | 172,925,696 | ||||||
Notes to Schedule of Investments
(a) | As of March 31, 2010, the Fund was diversified as a percentage of net assets as follows: |
Affiliated Fixed Income Funds | 57.9 | % | ||
Affiliated Equity Funds | 42.1 | % | ||
Short-Term Investment | 0.1 | % | ||
100.1 | % | |||
Other Assets & Liabilities, Net | (0.1 | %) | ||
100.0 | % | |||
(b) | Fair Value Measurements | |
The following is a summary of the Funds’ holdings as categorized under the three-tier hierarchy of inputs used in valuing the Funds’ assets and liabilities (See Note 10 in Notes to Financial Statements) as of March 31, 2010: |
Level 2 | Level 3 | |||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||
March 31, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||
PL Portfolio Optimization Conservative Fund | ||||||||||||||||
Assets | ||||||||||||||||
Affiliated Mutual Funds | $ | 156,442,845 | $ | 156,442,845 | $ | — | $ | — | ||||||||
Short-Term Investment | 243,392 | 243,392 | — | — | ||||||||||||
Total | $ | 156,686,237 | $ | 156,686,237 | $ | — | $ | — | ||||||||
PL Portfolio Optimization Moderate-Conservative Fund | ||||||||||||||||
Assets | ||||||||||||||||
Affiliated Mutual Funds | $ | 172,873,718 | $ | 172,873,718 | $ | — | $ | — | ||||||||
Short-Term Investment | 222,192 | 222,192 | — | — | ||||||||||||
Total | $ | 173,095,910 | $ | 173,095,910 | $ | — | $ | — | ||||||||
See Notes to Financial Statements | C-1 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL PORTFOLIO OPTIMIZATION MODERATE FUND
Schedule of Investments
March 31, 2010
PL PORTFOLIO OPTIMIZATION MODERATE FUND
Schedule of Investments
March 31, 2010
Shares | Value | |||||||
AFFILIATED MUTUAL FUNDS - 99.8% | ||||||||
PL Small-Cap Growth Fund ‘A’ * | 608,496 | $ | 5,725,947 | |||||
PL International Value Fund ‘A’ | 2,484,102 | 22,828,900 | ||||||
PL Large-Cap Value Fund ‘A’ | 5,277,173 | 54,988,140 | ||||||
PL Short Duration Bond Fund ‘A’ | 2,609,626 | 26,096,259 | ||||||
PL Floating Rate Loan Fund ‘A’ | 2,708,111 | 26,756,141 | ||||||
PL Growth LT Fund ‘A’ | 2,473,620 | 27,729,279 | ||||||
PL Mid-Cap Equity Fund ‘A’ | 3,797,673 | 32,887,850 | ||||||
PL International Large-Cap Fund ‘A’ | 2,474,131 | 34,217,226 | ||||||
PL Small-Cap Value Fund ‘A’ | 1,305,866 | 11,191,274 | ||||||
PL Main Street Core Fund ‘A’ | 5,619,794 | 50,578,147 | ||||||
PL Emerging Markets Fund ‘A’ | 1,413,393 | 17,229,262 | ||||||
PL Managed Bond Fund ‘A’ | 8,269,716 | 88,899,450 | ||||||
PL Inflation Managed Fund ‘A’ | 5,684,400 | 57,412,437 | ||||||
PL Large-Cap Growth Fund ‘A’ * | 2,925,443 | 22,555,165 | ||||||
PL Comstock Fund ‘A’ | 4,185,676 | 44,744,877 | ||||||
PL Mid-Cap Growth Fund ‘A’ | 1,323,121 | 11,127,446 | ||||||
PL Real Estate Fund ‘A’ | 1,261,230 | 11,653,763 | ||||||
Total Affiliated Mutual Funds (Cost $543,071,840) | 546,621,563 | |||||||
SHORT-TERM INVESTMENT - 0.2% | ||||||||
Money Market Fund - 0.2% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 1,253,798 | 1,253,798 | ||||||
Total Short-Term Investment (Cost $1,253,798) | 1,253,798 | |||||||
TOTAL INVESTMENTS - 100.0% (Cost $544,325,638) | 547,875,361 | |||||||
OTHER ASSETS & LIABILITIES, NET — (0.0%) | (204,809 | ) | ||||||
NET ASSETS - 100.0% | $ | 547,670,552 | ||||||
Notes to Schedule of Investments
(a) | As of March 31, 2010, the Fund was diversified as a percentage of net assets as follows: |
Affiliated Equity Funds | 63.4 | % | ||
Affiliated Fixed Income Funds | 36.4 | % | ||
Short-Term Investment | 0.2 | % | ||
100.0 | % | |||
Other Assets & Liabilities, Net | (0.0 | )% | ||
100.0 | % | |||
PACIFIC LIFE FUNDS
PL PORTFOLIO OPTIMIZATION MODERATE-AGGRESSIVE FUND
Schedule of Investments
March 31, 2010
PL PORTFOLIO OPTIMIZATION MODERATE-AGGRESSIVE FUND
Schedule of Investments
March 31, 2010
Shares | Value | |||||||
AFFILIATED MUTUAL FUNDS - 100.4% | ||||||||
PL Small-Cap Growth Fund ‘A’ * | 1,115,090 | $ | 10,493,002 | |||||
PL International Value Fund ‘A’ | 3,801,493 | 34,935,717 | ||||||
PL Large-Cap Value Fund ‘A’ | 5,686,650 | 59,254,893 | ||||||
PL Short Duration Bond Fund ‘A’ | 941,082 | 9,410,825 | ||||||
PL Growth LT Fund ‘A’ | 3,106,352 | 34,822,202 | ||||||
PL Mid-Cap Equity Fund ‘A’ | 4,680,309 | 40,531,478 | ||||||
PL International Large-Cap Fund ‘A’ | 2,884,392 | 39,891,136 | ||||||
PL Small-Cap Value Fund ‘A’ | 1,807,321 | 15,488,739 | ||||||
PL Main Street Core Fund ‘A’ | 6,130,271 | 55,172,436 | ||||||
PL Emerging Markets Fund ‘A’ | 1,661,502 | 20,253,709 | ||||||
PL Managed Bond Fund ‘A’ | 3,083,408 | 33,146,636 | ||||||
PL Inflation Managed Fund ‘A’ | 3,739,878 | 37,772,773 | ||||||
PL Large-Cap Growth Fund ‘A’ * | 2,599,774 | 20,044,255 | ||||||
PL Comstock Fund ‘A’ | 4,233,433 | 45,255,401 | ||||||
PL Mid-Cap Growth Fund ‘A’ | 3,030,690 | 25,488,101 | ||||||
PL Real Estate Fund ‘A’ | 1,734,095 | 16,023,035 | ||||||
Total Affiliated Mutual Funds (Cost $505,022,162) | 497,984,338 | |||||||
SHORT-TERM INVESTMENT - 0.1% | ||||||||
Money Market Fund - 0.1% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 378,244 | 378,244 | ||||||
Total Short-Term Investment (Cost $378,244) | 378,244 | |||||||
TOTAL INVESTMENTS - 100.5% (Cost $505,400,406) | 498,362,582 | |||||||
OTHER ASSETS & LIABILITIES, NET — (0.5%) | (2,247,841 | ) | ||||||
NET ASSETS - 100.0% | $ | 496,114,741 | ||||||
Notes to Schedule of Investments
(a) | As of March 31, 2010, the Fund was diversified as a percentage of net assets as follows: |
Affiliated Equity Funds | 84.2 | % | ||
Affiliated Fixed Income Funds | 16.2 | % | ||
Short-Term Investment | 0.1 | % | ||
100.5 | % | |||
Other Assets & Liabilities, Net | (0.5 | )% | ||
100.0 | % | |||
(b) | Fair Value Measurements | |
The following is a summary of the Funds’ holdings as categorized under the three-tier hierarchy of inputs used in valuing the Funds’ assets and liabilities (See Note 10 in Notes to Financial Statements) as of March 31, 2010: |
Level 2 | Level 3 | |||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||
March 31, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||
PL Portfolio Optimization Moderate Fund | ||||||||||||||||
Assets | ||||||||||||||||
Affiliated Mutual Funds | $ | 546,621,563 | $ | 546,621,563 | $ | — | $ | — | ||||||||
Short-Term Investment | 1,253,798 | 1,253,798 | — | — | ||||||||||||
Total | $ | 547,875,361 | $ | 547,875,361 | $ | — | $ | — | ||||||||
PL Portfolio Optimization Moderate-Aggressive Fund | ||||||||||||||||
Assets | ||||||||||||||||
Affiliated Mutual Funds | $ | 497,984,338 | $ | 497,984,338 | $ | — | $ | — | ||||||||
Short-Term Investment | 378,244 | 378,244 | — | — | ||||||||||||
Total | $ | 498,362,582 | $ | 498,362,582 | $ | — | $ | — | ||||||||
See Notes to Financial Statements | C-2 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL PORTFOLIO OPTIMIZATION AGGRESSIVE FUND
Schedule of Investments
March 31, 2010
PL PORTFOLIO OPTIMIZATION AGGRESSIVE FUND
Schedule of Investments
March 31, 2010
Shares | Value | |||||||
AFFILIATED MUTUAL FUNDS - 100.7% | ||||||||
PL Small-Cap Growth Fund ‘A’ * | 887,737 | $ | 8,353,605 | |||||
PL International Value Fund ‘A’ | 1,960,029 | 18,012,668 | ||||||
PL Large-Cap Value Fund ‘A’ | 2,306,192 | 24,030,520 | ||||||
PL Growth LT Fund ‘A’ | 1,444,406 | 16,191,792 | ||||||
PL Mid-Cap Equity Fund ‘A’ | 1,866,305 | 16,162,199 | ||||||
PL International Large-Cap Fund ‘A’ | 1,448,475 | 20,032,406 | ||||||
PL Small-Cap Value Fund ‘A’ | 1,158,499 | 9,928,335 | ||||||
PL Main Street Core Fund ‘A’ | 2,697,414 | 24,276,726 | ||||||
PL Emerging Markets Fund ‘A’ | 838,553 | 10,221,959 | ||||||
PL Managed Bond Fund ‘A’ | 518,697 | 5,575,991 | ||||||
PL Large-Cap Growth Fund ‘A’ * | 1,051,066 | 8,103,722 | ||||||
PL Comstock Fund ‘A’ | 1,901,036 | 20,322,078 | ||||||
PL Mid-Cap Growth Fund ‘A’ | 1,438,694 | 12,099,420 | ||||||
PL Real Estate Fund ‘A’ | 899,586 | 8,312,172 | ||||||
Total Affiliated Mutual Funds (Cost $199,639,549) | 201,623,593 | |||||||
TOTAL INVESTMENTS - 100.7% (Cost $199,639,549) | 201,623,593 | |||||||
OTHER ASSETS & LIABILITIES, NET — (0.7%) | (1,500,840 | ) | ||||||
NET ASSETS - 100.0% | $ | 200,122,753 | ||||||
Notes to Schedule of Investments
(a) | As of March 31, 2010, the Fund was diversified as a percentage of net assets as follows: |
Affiliated Equity Funds | 97.9 | % | ||
Affiliated Fixed Income Funds | 2.8 | % | ||
100.7 | % | |||
Other Assets & Liabilities, Net | (0.7 | )% | ||
100.0 | % | |||
(b) | Fair Value Measurements | |
The following is a summary of the Fund’s holdings as categorized under the three-tier hierarchy of inputs used in valuing the Fund’s assets and liabilities (See Note 10 in Notes to Financial Statements) as of March 31, 2010: |
Level 2 | Level 3 | |||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||
March 31, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||
Assets | ||||||||||||||||
Affiliated Mutual Funds | $ | 201,623,593 | $ | 201,623,593 | $ | — | $ | — | ||||||||
See Notes to Financial Statements | C-3 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL MONEY MARKET FUND
Schedule of Investments
March 31, 2010
PL MONEY MARKET FUND
Schedule of Investments
March 31, 2010
Principal | ||||||||
Amount | Value | |||||||
SHORT-TERM INVESTMENTS - 99.8% | ||||||||
Certificates of Deposit - 2.2% | ||||||||
Rabobank Nederland NV NY | ||||||||
0.180% due 04/26/10 | $ | 750,000 | $ | 750,005 | ||||
Commercial Paper - 84.2% | ||||||||
Bank of America Corp | ||||||||
0.190% due 05/03/10 | 1,000,000 | 999,831 | ||||||
Bank of Montreal (Canada) | ||||||||
0.180% due 04/07/10 | 900,000 | 899,973 | ||||||
Bank of Nova Scotia (Canada) | ||||||||
0.185% due 04/23/10 | 750,000 | 749,915 | ||||||
0.250% due 06/04/10 | 750,000 | 749,667 | ||||||
BNP Paribas Finance Inc | ||||||||
0.190% due 04/19/10 | 465,000 | 464,956 | ||||||
0.190% due 04/26/10 | 800,000 | 799,894 | ||||||
Commonwealth Bank of Australia (Australia) | ||||||||
0.195% due 05/25/10 | 1,000,000 | 999,708 | ||||||
ConocoPhillips Qatar Funding Ltd (Cayman) | ||||||||
0.170% due 06/03/10 | 500,000 | 499,851 | ||||||
Credit Agricole North America Inc | ||||||||
0.220% due 04/14/10 | 750,000 | 749,940 | ||||||
0.220% due 06/11/10 | 900,000 | 899,610 | ||||||
Electricite de France SA (France) | ||||||||
0.160% due 04/07/10 | 600,000 | 599,984 | ||||||
0.190% due 04/30/10 | 900,000 | 899,862 | ||||||
ENI Coordination Center SA (Belgium) | ||||||||
0.180% due 04/09/10 | 1,000,000 | 999,960 | ||||||
GDF Suez (France) | ||||||||
0.170% due 04/29/10 | 1,200,000 | 1,199,842 | ||||||
0.200% due 04/26/10 | 300,000 | 299,958 | ||||||
Government of Canada (Canada) | ||||||||
0.340% due 05/25/10 | 500,000 | 499,745 | ||||||
Hewlett Packard Co | ||||||||
0.160% due 04/26/10 | 900,000 | 899,900 | ||||||
John Deere Bank SA (Luxembourg) | ||||||||
0.150% due 04/07/10 | 500,000 | 499,987 | ||||||
Johnson & Johnson | ||||||||
0.270% due 08/06/10 | 500,000 | 499,524 | ||||||
0.270% due 08/09/10 | 750,000 | 749,269 | ||||||
L’Oreal USA Inc | ||||||||
0.180% due 05/20/10 | 500,000 | 499,878 | ||||||
Nestle Capital Corp | ||||||||
0.550% due 04/19/10 | 900,000 | 899,752 | ||||||
NetJets Inc | ||||||||
0.150% due 04/01/10 | 1,000,000 | 1,000,000 | ||||||
0.160% due 04/16/10 | 750,000 | 749,950 | ||||||
New York Life Capital Corp | ||||||||
0.150% due 04/13/10 | 750,000 | 749,962 | ||||||
NSTAR | ||||||||
0.160% due 04/05/10 | 900,000 | 899,984 | ||||||
Oracle Corp | ||||||||
0.160% due 05/17/10 | 1,000,000 | 999,796 | ||||||
Rabobank Netherland NV NY | ||||||||
0.190% due 04/14/10 | 750,000 | 749,950 | ||||||
Royal Bank of Canada (Canada) | ||||||||
0.250% due 06/21/10 | 500,000 | 499,719 | ||||||
Societe Generale North America Inc | ||||||||
0.190% due 04/19/10 | 250,000 | 249,976 | ||||||
0.210% due 04/26/10 | 750,000 | 749,891 | ||||||
The Coca-Cola Co | ||||||||
0.170% due 06/01/10 | 750,000 | 749,784 | ||||||
0.200% due 05/13/10 | 1,000,000 | 999,767 | ||||||
Total Capital Canada Ltd (Canada) | ||||||||
0.200% due 06/04/10 | 1,000,000 | 999,644 | ||||||
Toyota Motor Credit Corp | ||||||||
0.220% due 04/01/10 | 750,000 | 750,000 | ||||||
UBS Finance DE LLC | ||||||||
0.050% due 04/01/10 | 400,000 | 400,000 | ||||||
0.150% due 04/05/10 | 1,000,000 | 999,983 | ||||||
Westpac Banking Corp (Australia) | ||||||||
0.180% due 04/01/10 | 1,000,000 | 1,000,000 | ||||||
0.200% due 05/25/10 | 300,000 | 299,910 | ||||||
29,209,322 | ||||||||
Corporate Notes - 4.7% | ||||||||
ConocoPhillips | ||||||||
8.750% due 05/25/10 | 350,000 | 354,423 | ||||||
Toyota Motor Credit Corp | ||||||||
0.351% due 07/19/10 § | 750,000 | 750,000 | ||||||
Wal-Mart Stores Inc | ||||||||
4.750% due 08/15/10 | 507,000 | 515,193 | ||||||
1,619,616 | ||||||||
U.S. Treasury Bills - 8.6% | ||||||||
0.240% due 09/16/10 | 1,000,000 | 998,882 | ||||||
0.490% due 07/29/10 | 500,000 | 499,190 | ||||||
0.510% due 06/03/10 | 750,000 | 749,331 | ||||||
0.518% due 07/01/10 | 750,000 | 749,019 | ||||||
2,996,422 | ||||||||
Shares | ||||||||
Money Market Fund - 0.1% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 36,450 | 36,450 | ||||||
Total Short-Term Investments (Amortized Cost $34,611,815) | 34,611,815 | |||||||
TOTAL INVESTMENTS - 99.8% (Amortized Cost $34,611,815) | 34,611,815 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.2% | 57,109 | |||||||
NET ASSETS - 100.0% | $ | 34,668,924 | ||||||
Notes to Schedule of Investments
(a) | As of March 31, 2010, the Fund was diversified as a percentage of net assets as follows: |
Commercial Paper | 84.2 | % | ||
U.S. Treasury Bills | 8.6 | % | ||
Corporate Notes | 4.7 | % | ||
Certificates of Deposit | 2.2 | % | ||
Money Market Fund | 0.1 | % | ||
99.8 | % | |||
Other Assets & Liabilities, Net | 0.2 | % | ||
100.0 | % | |||
(b) | As of March 31, 2010, the Fund’s Standard & Poor’s quality ratings on its investments, as a percentage of total fixed income investments were as follows: |
AAA / U.S. Government & Agency Issues | 8.7 | % | ||
A-1 (Short Term Debt Only) | 84.4 | % | ||
AA | 3.7 | % | ||
A | 1.0 | % | ||
Not Rated | 2.2 | % | ||
100.0 | % | |||
See Notes to Financial Statements | C-4 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL MONEY MARKET FUND
Schedule of Investments (Continued)
March 31, 2010
PL MONEY MARKET FUND
Schedule of Investments (Continued)
March 31, 2010
(c) | Short-term securities reflect either the stated coupon rate or the annualized effective yield on the date of purchase for discounted securities. | |
(d) | Fair Value Measurements | |
The following is a summary of the Fund’s holdings as categorized under the three-tier hierarchy of inputs used in valuing the Fund’s assets and liabilities (See Note 10 in Notes to Financial Statements) as of March 31, 2010: |
Level 2 | Level 3 | |||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||
March 31, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||
Assets | ||||||||||||||||
Short-Term Investments | $ | 34,611,815 | $ | 36,450 | $ | 34,575,365 | $ | — | ||||||||
See Notes to Financial Statements | C-5 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL SMALL-CAP GROWTH FUND
Schedule of Investments
March 31, 2010
PL SMALL-CAP GROWTH FUND
Schedule of Investments
March 31, 2010
Shares | Value | |||||||
COMMON STOCKS - 96.8% | ||||||||
Consumer Discretionary - 17.1% | ||||||||
Aeropostale Inc * | 6,280 | $ | 181,052 | |||||
American Public Education Inc * | 6,500 | 302,900 | ||||||
AnnTaylor Stores Corp * | 11,250 | 232,875 | ||||||
Choice Hotels International Inc | 5,400 | 187,974 | ||||||
Coldwater Creek Inc * | 18,500 | 128,390 | ||||||
Dana Holding Corp * | 19,400 | 230,472 | ||||||
Fossil Inc * | 4,700 | 177,378 | ||||||
Grand Canyon Education Inc * | 6,400 | 167,296 | ||||||
Interval Leisure Group Inc * | 15,115 | 220,074 | ||||||
J. Crew Group Inc * | 4,480 | 205,632 | ||||||
Life Time Fitness Inc * | 6,020 | 169,162 | ||||||
LKQ Corp * | 12,650 | 256,795 | ||||||
McCormick & Schmick’s Seafood Restaurants Inc * | 10,075 | 101,455 | ||||||
Phillips-Van Heusen Corp | 4,750 | 272,460 | ||||||
Shutterfly Inc * | 9,925 | 239,093 | ||||||
Sotheby’s | 6,150 | 191,204 | ||||||
The Cheesecake Factory Inc * | 6,850 | 185,361 | ||||||
The Children’s Place Retail Stores Inc * | 4,530 | 201,812 | ||||||
Tupperware Brands Corp | 5,675 | 273,649 | ||||||
Williams-Sonoma Inc | 9,150 | 240,554 | ||||||
WMS Industries Inc * | 5,590 | 234,445 | ||||||
4,400,033 | ||||||||
Consumer Staples - 2.6% | ||||||||
Central European Distribution Corp * | 5,825 | 203,933 | ||||||
Diamond Foods Inc | 3,050 | 128,222 | ||||||
Flowers Foods Inc | 6,505 | 160,934 | ||||||
The Hain Celestial Group Inc * | 10,435 | 181,047 | ||||||
674,136 | ||||||||
Energy - 4.3% | ||||||||
Acergy SA ADR (Luxemburg) | 7,900 | 145,044 | ||||||
Cal Dive International Inc * | 16,500 | 120,945 | ||||||
Concho Resources Inc * | 2,550 | 128,418 | ||||||
Dril-Quip Inc * | 1,315 | 80,005 | ||||||
Mariner Energy Inc * | 16,390 | 245,358 | ||||||
Patriot Coal Corp * | 10,020 | 205,009 | ||||||
Quicksilver Resources Inc * | 13,095 | 184,247 | ||||||
1,109,026 | ||||||||
Financials - 5.0% | ||||||||
Brookline Bancorp Inc | 16,810 | 178,858 | ||||||
Cohen & Steers Inc | 7,450 | 185,952 | ||||||
CVB Financial Corp | 9,800 | 97,314 | ||||||
IBERIABANK Corp | 2,100 | 126,021 | ||||||
Knight Capital Group Inc ‘A’ * | 8,300 | 126,575 | ||||||
Lazard Ltd ‘A’ (Bermuda) | 6,090 | 217,413 | ||||||
Ocwen Financial Corp * | 14,150 | 156,924 | ||||||
Platinum Underwriters Holdings Ltd (Bermuda) | 5,360 | 198,749 | ||||||
1,287,806 | ||||||||
Health Care - 23.4% | ||||||||
Acorda Therapeutics Inc * | 2,150 | 73,530 | ||||||
AGA Medical Holdings Inc * | 5,050 | 82,063 | ||||||
Alexion Pharmaceuticals Inc * | 3,450 | 187,577 | ||||||
AMERIGROUP Corp * | 7,690 | 255,616 | ||||||
ArthroCare Corp * | 4,750 | 141,170 | ||||||
Auxilium Pharmaceuticals Inc * | 8,455 | 263,458 | ||||||
Bruker Corp * | 17,790 | 260,624 | ||||||
Cyberonics Inc * | 6,630 | 127,031 | ||||||
Gentiva Health Services Inc * | 7,880 | 222,846 | ||||||
Human Genome Sciences Inc * | 10,298 | 311,000 | ||||||
ICON PLC ADR (Ireland) * | 5,765 | 152,196 | ||||||
Insulet Corp * | 13,770 | 207,789 | ||||||
InterMune Inc * | 2,500 | 111,425 | ||||||
Inverness Medical Innovations Inc * | 6,755 | 263,107 | ||||||
LifePoint Hospitals Inc * | 6,500 | 239,070 | ||||||
Masimo Corp | 3,525 | 93,589 | ||||||
Medicis Pharmaceutical Corp ‘A’ | 11,180 | 281,289 | ||||||
Medidata Solutions Inc * | 15,050 | 228,760 | ||||||
NuVasive Inc * | 4,500 | 203,400 | ||||||
Optimer Pharmaceuticals Inc * | 18,510 | 227,303 | ||||||
OSI Pharmaceuticals Inc * | 3,215 | 191,453 | ||||||
Owens & Minor Inc | 4,505 | 208,987 | ||||||
PAREXEL International Corp * | 14,275 | 332,750 | ||||||
PharMerica Corp * | 12,045 | 219,460 | ||||||
Savient Pharmaceuticals Inc * | 14,945 | 215,955 | ||||||
Select Medical Holdings Corp * | 18,700 | 157,828 | ||||||
Sirona Dental Systems Inc * | 6,750 | 256,703 | ||||||
Thoratec Corp * | 6,370 | 213,077 | ||||||
United Therapeutics Corp * | 1,910 | 105,680 | ||||||
Wright Medical Group Inc * | 9,110 | 161,885 | ||||||
5,996,621 | ||||||||
Industrials - 17.0% | ||||||||
Actuant Corp ‘A’ | 11,445 | 223,750 | ||||||
Aecom Technology Corp * | 6,735 | 191,072 | ||||||
AirTran Holdings Inc * | 30,880 | 156,870 | ||||||
BE Aerospace Inc * | 9,345 | 284,555 | ||||||
CLARCOR Inc | 5,390 | 185,901 | ||||||
Dollar Thrifty Automotive Group Inc * | 9,100 | 292,383 | ||||||
Esterline Technologies Corp * | 4,780 | 236,275 | ||||||
FTI Consulting Inc * | 5,210 | 204,857 | ||||||
Generac Holdings Inc * | 5,450 | 76,355 | ||||||
Genesee & Wyoming Inc ‘A’ * | 5,720 | 195,166 | ||||||
GrafTech International Ltd * | 14,350 | 196,165 | ||||||
ICF International Inc * | 7,150 | 177,606 | ||||||
RBC Bearings Inc * | 8,665 | 276,154 | ||||||
Resources Connection Inc * | 10,025 | 192,179 | ||||||
SYKES Enterprises Inc * | 10,800 | 246,672 | ||||||
Tetra Tech Inc * | 6,400 | 147,456 | ||||||
The Geo Group Inc * | 12,030 | 238,435 | ||||||
Towers Watson & Co ‘A’ | 4,650 | 220,875 | ||||||
Waste Connections Inc * | 9,140 | 310,394 | ||||||
Woodward Governor Co | 10,030 | 320,759 | ||||||
4,373,879 | ||||||||
Information Technology - 22.1% | ||||||||
ANSYS Inc * | 1,420 | 61,259 | ||||||
Aruba Networks Inc * | 13,150 | 179,629 | ||||||
Atheros Communications Inc * | 6,995 | 270,776 | ||||||
Brocade Communications Systems Inc * | 29,215 | 166,818 | ||||||
Concur Technologies Inc * | 4,750 | 194,798 | ||||||
Finisar Corp * | 18,050 | 283,566 | ||||||
GSI Commerce Inc * | 11,290 | 312,394 | ||||||
Informatica Corp * | 11,750 | 315,605 | ||||||
LogMeIn Inc * | 7,665 | 158,589 | ||||||
Mellanox Technologies Ltd (Israel) * | 10,140 | 239,000 | ||||||
Monolithic Power Systems Inc * | 9,745 | 217,314 | ||||||
Netlogic Microsystems Inc * | 8,380 | 246,623 | ||||||
NICE Systems Ltd ADR (Israel) * | 8,795 | 279,241 | ||||||
Novellus Systems Inc * | 10,650 | 266,250 | ||||||
OpenTable Inc * | 4,840 | 184,549 | ||||||
Pegasystems Inc | 7,630 | 282,310 | ||||||
QLogic Corp * | 12,050 | 244,615 | ||||||
Silicon Laboratories Inc * | 1,650 | 78,656 | ||||||
Skyworks Solutions Inc * | 15,780 | 246,168 | ||||||
SolarWinds Inc * | 12,560 | 272,050 | ||||||
Solera Holdings Inc | 7,315 | 282,725 | ||||||
Taleo Corp ‘A’ * | 9,324 | 241,585 | ||||||
VanceInfo Technologies Inc ADR (Cayman) * | 9,331 | 207,988 |
See Notes to Financial Statements | C-6 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL SMALL-CAP GROWTH FUND
Schedule of Investments (Continued)
March 31, 2010
PL SMALL-CAP GROWTH FUND
Schedule of Investments (Continued)
March 31, 2010
Shares | Value | |||||||
VistaPrint NV (Netherlands) * | 4,875 | $ | 279,094 | |||||
Wright Express Corp * | 5,865 | 176,654 | ||||||
5,688,256 | ||||||||
Materials - 2.6% | ||||||||
Gammon Gold Inc (Canada) * | 14,100 | 101,379 | ||||||
Louisiana-Pacific Corp * | 21,550 | 195,028 | ||||||
Rockwood Holdings Inc * | 7,150 | 190,333 | ||||||
Silgan Holdings Inc | 2,795 | 168,343 | ||||||
655,083 | ||||||||
Telecommunication Services - 1.5% | ||||||||
SBA Communications Corp ‘A’ * | 3,600 | 129,852 | ||||||
Syniverse Holdings Inc * | 13,335 | 259,626 | ||||||
389,478 | ||||||||
Utilities - 1.2% | ||||||||
ITC Holdings Corp | 5,480 | 301,400 | ||||||
Total Common Stocks (Cost $18,695,896) | 24,875,718 | |||||||
SHORT-TERM INVESTMENT - 2.9% | ||||||||
Money Market Fund - 2.9% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 746,179 | 746,179 | ||||||
Total Short-Term Investment (Cost $746,179) | 746,179 | |||||||
TOTAL INVESTMENTS - 99.7% (Cost $19,442,075) | 25,621,897 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.3% | 69,500 | |||||||
NET ASSETS - 100.0% | $ | 25,691,397 | ||||||
Notes to Schedule of Investments
(a) | As of March 31, 2010, the Fund was diversified as a percentage of net assets as follows: |
Health Care | 23.4 | % | ||
Information Technology | 22.1 | % | ||
Consumer Discretionary | 17.1 | % | ||
Industrials | 17.0 | % | ||
Financials | 5.0 | % | ||
Energy | 4.3 | % | ||
Short-Term Investment | 2.9 | % | ||
Consumer Staples | 2.6 | % | ||
Materials | 2.6 | % | ||
Telecommunication Services | 1.5 | % | ||
Utilities | 1.2 | % | ||
99.7 | % | |||
Other Assets & Liabilities, Net | 0.3 | % | ||
100.0 | % | |||
(b) | Fair Value Measurements | |
The following is a summary of the Fund’s holdings as categorized under the three-tier hierarchy of inputs used in valuing the Fund’s assets and liabilities (See Note 10 in Notes to Financial Statements) as of March 31, 2010: |
Level 2 | Level 3 | |||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||
March 31, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||
Assets | ||||||||||||||||
Common Stocks (1) | $ | 24,875,718 | $ | 24,875,718 | $ | — | $ | — | ||||||||
Short-Term Investment | 746,179 | 746,179 | — | — | ||||||||||||
Total | $ | 25,621,897 | $ | 25,621,897 | $ | — | $ | — | ||||||||
(1) | For equity securities categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | C-7 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL INTERNATIONAL VALUE FUND
Schedule of Investments
March 31, 2010
PL INTERNATIONAL VALUE FUND
Schedule of Investments
March 31, 2010
Shares | Value | |||||||
COMMON STOCKS - 96.7% | ||||||||
Australia - 5.5% | ||||||||
Amcor Ltd + | 73,641 | $ | 431,561 | |||||
Australia & New Zealand Banking Group Ltd + | 35,500 | 825,106 | ||||||
Bendigo and Adelaide Bank Ltd + | 33,500 | 307,120 | ||||||
BHP Billiton Ltd + | 11,800 | 473,319 | ||||||
Fairfax Media Ltd + | 106,700 | 176,036 | ||||||
Intoll Group + | 210,802 | 215,974 | ||||||
Lend Lease Group + | 22,100 | 175,463 | ||||||
Macquarie Group Ltd + | 13,000 | 562,205 | ||||||
National Australia Bank Ltd + | 35,222 | 888,688 | ||||||
Qantas Airways Ltd + | 101,758 | 264,692 | ||||||
Telstra Corp Ltd + | 159,200 | 436,516 | ||||||
4,756,680 | ||||||||
Austria - 0.6% | ||||||||
OMV AG + | 12,700 | 476,161 | ||||||
Belgium - 0.2% | ||||||||
KBC Groep NV * + | 4,200 | 202,294 | ||||||
Bermuda - 1.1% | ||||||||
Esprit Holdings Ltd + | 73,801 | 581,635 | ||||||
Noble Group Ltd + | 182,000 | 397,373 | ||||||
979,008 | ||||||||
Canada - 2.9% | ||||||||
Canadian Imperial Bank of Commerce | 3,364 | 245,763 | ||||||
EnCana Corp | 12,100 | 376,469 | ||||||
National Bank of Canada | 6,200 | 377,500 | ||||||
Nexen Inc | 24,266 | 600,408 | ||||||
Penn West Energy Trust | 21,636 | 458,219 | ||||||
Suncor Energy Inc | 13,312 | 432,920 | ||||||
2,491,279 | ||||||||
Denmark - 1.4% | ||||||||
Carlsberg AS ‘B’ + | 7,150 | 599,423 | ||||||
Danske Bank AS * + | 22,800 | 559,446 | ||||||
1,158,869 | ||||||||
Finland - 1.5% | ||||||||
Cargotec OYJ ‘B’ + | 6,900 | 199,379 | ||||||
Nokia OYJ + | 71,000 | 1,106,479 | ||||||
1,305,858 | ||||||||
France - 12.5% | ||||||||
BNP Paribas + | 15,448 | 1,184,043 | ||||||
Bouygues SA + | 10,900 | 546,877 | ||||||
Casino Guichard-Perrachon SA + | 3,700 | 312,706 | ||||||
Cie de Saint-Gobain + | 13,500 | 648,323 | ||||||
Credit Agricole SA + | 39,803 | 695,284 | ||||||
Electricite de France SA + | 11,800 | 643,261 | ||||||
France Telecom SA + | 34,600 | 828,768 | ||||||
Klepierre REIT + | 10,400 | 407,485 | ||||||
Lagardere SCA + | 14,500 | 586,126 | ||||||
Rexel SA * + | 29,500 | 447,968 | ||||||
Sanofi-Aventis SA + | 15,201 | 1,134,432 | ||||||
Societe Generale + | 13,627 | 855,231 | ||||||
Total SA + | 17,656 | 1,024,723 | ||||||
Vallourec SA + | 3,674 | 741,384 | ||||||
Vivendi + | 28,630 | 765,586 | ||||||
10,822,197 | ||||||||
Germany - 9.3% | ||||||||
Allianz SE + | 10,410 | 1,302,892 | ||||||
BASF SE + | 7,300 | 451,855 | ||||||
Bayer AG + | 14,500 | 979,768 | ||||||
Bayerische Motoren Werke AG + | 16,200 | 747,361 | ||||||
Celesio AG + | 6,300 | 201,352 | ||||||
Deutsche Bank AG + | 13,100 | 1,005,607 | ||||||
Deutsche Post AG + | 24,020 | 416,022 | ||||||
Deutsche Telekom AG + | 22,000 | 297,303 | ||||||
E.ON AG + | 31,096 | 1,149,644 | ||||||
Muenchener Rueckversicherungs AG + | 4,261 | 691,209 | ||||||
RWE AG + | 3,283 | 291,244 | ||||||
ThyssenKrupp AG + | 15,000 | 514,353 | ||||||
8,048,610 | ||||||||
Hong Kong - 0.5% | ||||||||
New World Development Ltd + | 203,688 | 397,748 | ||||||
Italy - 3.7% | ||||||||
Banca Popolare di Milano SCARL + | 50,600 | 314,159 | ||||||
Enel SPA + | 49,900 | 278,889 | ||||||
ENI SPA + | 36,089 | 846,515 | ||||||
Telecom Italia SPA + | 390,100 | 560,889 | ||||||
Telecom Italia SPA RNC + | 233,000 | 262,839 | ||||||
UniCredit SPA * + | 300,830 | 887,017 | ||||||
3,150,308 | ||||||||
Japan - 22.2% | ||||||||
Aeon Co Ltd + | 47,500 | 539,804 | ||||||
Air Water Inc + | 10,000 | 114,568 | ||||||
Ajinomoto Co Inc + | 26,000 | 257,784 | ||||||
Astellas Pharma Inc + | 4,200 | 152,137 | ||||||
Canon Inc + | 6,300 | 291,408 | ||||||
Dowa Holdings Co Ltd + | 35,000 | 211,054 | ||||||
East Japan Railway Co + | 2,300 | 160,027 | ||||||
Elpida Memory Inc * + | 20,100 | 396,660 | ||||||
Honda Motor Co Ltd + | 5,700 | 200,917 | ||||||
ITOCHU Corp + | 60,000 | 526,631 | ||||||
Japan Tobacco Inc + | 207 | 770,629 | ||||||
JFE Holdings Inc + | 12,400 | 500,299 | ||||||
KDDI Corp + | 95 | 491,798 | ||||||
Kirin Holdings Co Ltd + | 25,000 | 369,112 | ||||||
Konami Corp + | 2,400 | 46,318 | ||||||
Kyushu Electric Power Co Inc + | 20,900 | 455,275 | ||||||
MEDIPAL HOLDINGS Corp + | 26,900 | 318,929 | ||||||
Mitsubishi Corp + | 27,900 | 732,646 | ||||||
Mitsubishi Materials Corp * + | 142,000 | 409,029 | ||||||
Mitsubishi UFJ Financial Group Inc + | 63,900 | 334,942 | ||||||
Mitsui & Co Ltd + | 42,800 | 720,638 | ||||||
Mitsui Fudosan Co Ltd + | 32,000 | 544,667 | ||||||
Murata Manufacturing Co Ltd + | 10,500 | 597,522 | ||||||
Namco Bandai Holdings Inc + | 12,100 | 118,008 | ||||||
NEC Corp + | 88,000 | 265,061 | ||||||
NGK Spark Plug Co Ltd + | 27,000 | 367,791 | ||||||
Nippon Mining Holdings Inc + | 62,500 | 296,875 | ||||||
Nippon Oil Corp + | 28,000 | 142,601 | ||||||
Nippon Shokubai Co Ltd + | 22,000 | 198,829 | ||||||
Nippon Steel Corp | 42,000 | 164,873 | ||||||
Nippon Telegraph & Telephone Corp + | 17,600 | 740,565 | ||||||
Nissan Motor Co Ltd * + | 100,400 | 862,188 | ||||||
NTT Urban Development Corp + | 250 | 211,662 | ||||||
OJI Paper Co Ltd + | 71,000 | 311,616 | ||||||
ORIX Corp + | 6,970 | 618,867 | ||||||
Sharp Corp + | 40,000 | 500,911 | ||||||
Sony Corp + | 21,000 | 804,644 | ||||||
Sumitomo Mitsui Financial Group Inc + | 25,300 | 838,183 |
See Notes to Financial Statements | C-8 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL INTERNATIONAL VALUE FUND
Schedule of Investments (Continued)
March 31, 2010
PL INTERNATIONAL VALUE FUND
Schedule of Investments (Continued)
March 31, 2010
Shares | Value | |||||||
Sumitomo Realty & Development Co Ltd + | 21,000 | $ | 400,719 | |||||
The Furukawa Electric Co Ltd + | 60,000 | 312,304 | ||||||
The Kansai Electric Power Co Inc + | 16,900 | 387,404 | ||||||
The Tokyo Electric Power Co Inc + | 25,100 | 669,455 | ||||||
Tokyo Gas Co Ltd + | 117,000 | 516,064 | ||||||
Toppan Printing Co Ltd | 35,000 | 315,970 | ||||||
Toshiba Corp * + | 133,000 | 688,385 | ||||||
West Japan Railway Co + | 85 | 292,860 | ||||||
19,168,629 | ||||||||
Netherlands - 2.2% | ||||||||
Delta Lloyd NV * + | 9,000 | 213,798 | ||||||
ING Groep NV CVA * + | 27,149 | 268,981 | ||||||
Koninklijke DSM NV + | 10,900 | 485,595 | ||||||
Nutreco Holding NV + | 3,400 | 214,146 | ||||||
Randstad Holding NV * + | 14,300 | 679,091 | ||||||
1,861,611 | ||||||||
New Zealand - 0.3% | ||||||||
Telecom Corp of New Zealand Ltd (ASX) + | 191,460 | 292,998 | ||||||
Spain - 3.3% | ||||||||
Banco Bilbao Vizcaya Argentaria SA + | 31,400 | 429,396 | ||||||
Banco Santander SA + | 99,927 | 1,325,440 | ||||||
Telefonica SA + | 45,500 | 1,078,106 | ||||||
2,832,942 | ||||||||
Sweden - 0.6% | ||||||||
Electrolux AB ‘B’ | 8,900 | 203,376 | ||||||
Telefonaktiebolaget LM Ericsson ‘B’ + | 28,000 | 293,609 | ||||||
496,985 | ||||||||
Switzerland - 5.0% | ||||||||
Credit Suisse Group AG + | 9,079 | 467,318 | ||||||
Nestle SA + | 26,406 | 1,353,096 | ||||||
Novartis AG + | 22,427 | 1,213,165 | ||||||
Roche Holding AG + | 5,400 | 877,017 | ||||||
Zurich Financial Services AG + | 1,660 | 425,780 | ||||||
4,336,376 | ||||||||
United Kingdom - 23.9% | ||||||||
Arriva PLC + | 23,300 | 259,078 | ||||||
AstraZeneca PLC + | 22,222 | 990,784 | ||||||
Aviva PLC + | 53,238 | 311,008 | ||||||
BAE Systems PLC + | 110,500 | 622,985 | ||||||
Barclays PLC + | 171,183 | 932,122 | ||||||
BHP Billiton PLC + | 12,100 | 413,554 | ||||||
BP Group PLC + | 151,498 | 1,433,950 | ||||||
British Airways PLC * | 56,600 | 208,714 | ||||||
British American Tobacco PLC + | 10,000 | 344,754 | ||||||
BT Group PLC + | 229,010 | 429,875 | ||||||
Charter International PLC + | 26,700 | 304,120 | ||||||
Cookson Group PLC * + | 43,200 | 358,150 | ||||||
Drax Group PLC + | 48,000 | 272,390 | ||||||
DSG International PLC * | 397,800 | 210,979 | ||||||
FirstGroup PLC + | 53,500 | 291,378 | ||||||
GlaxoSmithKline PLC + | 57,400 | 1,101,778 | ||||||
HSBC Holdings PLC (LI) + | 91,516 | 927,413 | ||||||
Inchcape PLC * + | 465,300 | 208,133 | ||||||
Kazakhmys PLC * + | 19,700 | 455,385 | ||||||
Kingfisher PLC + | 134,000 | 436,294 | ||||||
Lloyds Banking Group PLC * + | 792,937 | 752,943 | ||||||
Marks & Spencer Group PLC + | 106,800 | 600,226 | ||||||
Old Mutual PLC * + | 280,500 | 521,109 | ||||||
Premier Foods PLC + | 310,100 | 149,402 | ||||||
Rentokil Initial PLC * | 25,600 | 50,658 | ||||||
Rio Tinto PLC + | 22,200 | 1,312,434 | ||||||
Rolls-Royce Group PLC* + | 71,100 | 643,726 | ||||||
Royal Dutch Shell PLC ‘A’ (XAMS) + | 71,035 | 2,054,231 | ||||||
Thomas Cook Group PLC+ | 93,500 | 383,026 | ||||||
TUI Travel PLC + | 93,400 | 427,888 | ||||||
Vodafone Group PLC+ | 794,071 | 1,836,618 | ||||||
Wolseley PLC * + | 21,600 | 521,929 | ||||||
Xstrata PLC * + | 44,730 | 846,573 | ||||||
20,613,607 | ||||||||
Total Common Stocks (Cost $79,402,830) | 83,392,160 | |||||||
SHORT-TERM INVESTMENT - 3.7% | ||||||||
Money Market Fund - 3.7% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 3,208,210 | 3,208,210 | ||||||
Total Short-Term Investment (Cost $3,208,210) | 3,208,210 | |||||||
TOTAL INVESTMENTS - 100.4% (Cost $82,611,040) | 86,600,370 | |||||||
OTHER ASSETS & LIABILITIES, NET — (0.4%) | (316,437 | ) | ||||||
NET ASSETS - 100.0% | $ | 86,283,933 | ||||||
Notes to Schedule of Investments
(a) | As of March 31, 2010, the Fund was diversified as a percentage of net assets as follows: |
Financials | 24.8 | % | ||
Industrials | 12.6 | % | ||
Consumer Discretionary | 9.5 | % | ||
Energy | 9.4 | % | ||
Materials | 8.5 | % | ||
Telecommunication Services | 8.4 | % | ||
Health Care | 8.1 | % | ||
Consumer Staples | 5.7 | % | ||
Utilities | 5.4 | % | ||
Information Technology | 4.3 | % | ||
Short-Term Investment | 3.7 | % | ||
100.4 | % | |||
Other Assets & Liabilities, Net | (0.4 | %) | ||
100.0 | % | |||
See Notes to Financial Statements | C-9 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL INTERNATIONAL VALUE FUND
Schedule of Investments (Continued)
March 31, 2010
PL INTERNATIONAL VALUE FUND
Schedule of Investments (Continued)
March 31, 2010
(b) | As of March 31, 2010, the Fund was diversified by geographical region as a percentage of net assets as follows: |
United Kingdom | 23.9 | % | ||
Japan | 22.2 | % | ||
France | 12.5 | % | ||
Germany | 9.3 | % | ||
Australia | 5.5 | % | ||
Switzerland | 5.0 | % | ||
Italy | 3.7 | % | ||
United States | 3.7 | % | ||
Spain | 3.3 | % | ||
Canada | 2.9 | % | ||
Netherlands | 2.2 | % | ||
Finland | 1.5 | % | ||
Denmark | 1.4 | % | ||
Bermuda | 1.1 | % | ||
Austria | 0.6 | % | ||
Sweden | 0.6 | % | ||
Hong Kong | 0.5 | % | ||
New Zealand | 0.3 | % | ||
Belgium | 0.2 | % | ||
100.4 | % | |||
Other Assets & Liabilities, Net | (0.4 | %) | ||
100.0 | % | |||
(c) | Securities with a total aggregate value of $79,746,311 or 92.4% of the net assets were valued under the fair value procedures established by the Funds’ Board of Trustees, including considerations to determine fair values for certain foreign equity securities, if applicable. | |
(d) | Open futures contracts outstanding as of March 31, 2010 were as follows: |
Net | ||||||||||||
Number of | Notional | Unrealized | ||||||||||
Long Futures Outstanding | Contracts | Amount | Appreciation | |||||||||
Dow Jones EURO STOXX 50 (06/10) | 14 | EUR 394,240 | $ | 6,616 | ||||||||
(e) | As of March 31, 2010, $211,802 in cash was segregated with the broker(s)/ custodian for open futures contracts. | |
(f) | Fair Value Measurements | |
The following is a summary of the Fund’s holdings as categorized under the three-tier hierarchy of inputs used in valuing the Fund’s assets and liabilities (See Note 10 in Notes to Financial Statements) as of March 31, 2010: |
Level 2 | Level 3 | |||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||
March 31, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||
Assets | ||||||||||||||||||
Common Stocks | ||||||||||||||||||
Australia | $ | 4,756,680 | $ | — | $ | 4,756,680 | $ | — | ||||||||||
Austria | 476,161 | — | 476,161 | — | ||||||||||||||
Belgium | 202,294 | — | 202,294 | — | ||||||||||||||
Bermuda | 979,008 | — | 979,008 | — | ||||||||||||||
Canada | 2,491,279 | 2,491,279 | — | — | ||||||||||||||
Denmark | 1,158,869 | — | 1,158,869 | — | ||||||||||||||
Finland | 1,305,858 | — | 1,305,858 | — | ||||||||||||||
France | 10,822,197 | — | 10,822,197 | — | ||||||||||||||
Germany | 8,048,610 | — | 8,048,610 | — | ||||||||||||||
Hong Kong | 397,748 | — | 397,748 | — | ||||||||||||||
Italy | 3,150,308 | — | 3,150,308 | — | ||||||||||||||
Japan | 19,168,629 | 480,843 | 18,687,786 | — | ||||||||||||||
Netherlands | 1,861,611 | — | 1,861,611 | — | ||||||||||||||
New Zealand | 292,998 | — | 292,998 | — | ||||||||||||||
Spain | 2,832,942 | — | 2,832,942 | — | ||||||||||||||
Sweden | 496,985 | 203,376 | 293,609 | — | ||||||||||||||
Switzerland | 4,336,376 | — | 4,336,376 | — | ||||||||||||||
United Kingdom | 20,613,607 | 470,351 | 20,143,256 | — | ||||||||||||||
83,392,160 | 3,645,849 | 79,746,311 | — | |||||||||||||||
Short-Term Investment | 3,208,210 | 3,208,210 | — | — | ||||||||||||||
Investments on Other Financial Instruments (1) | 6,616 | 6,616 | — | — | ||||||||||||||
Total | $ | 86,606,986 | $ | 6,860,675 | $ | 79,746,311 | $ | — | ||||||||||
(1) | Investments in other financial instruments may include open futures contracts, swap contracts, options, and forward foreign currency contracts. |
See Notes to Financial Statements | C-10 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL LARGE-CAP VALUE FUND
Schedule of Investments
March 31, 2010
PL LARGE-CAP VALUE FUND
Schedule of Investments
March 31, 2010
Shares | Value | |||||||
COMMON STOCKS - 97.4% | ||||||||
Consumer Discretionary - 15.8% | ||||||||
DISH Network Corp ‘A’ | 152,180 | $ | 3,168,388 | |||||
McDonald’s Corp | 48,060 | 3,206,563 | ||||||
News Corp ‘A’ | 245,700 | 3,540,537 | ||||||
Scripps Networks Interactive Inc ‘A’ | 37,780 | 1,675,543 | ||||||
SES SA FDR (Luxembourg) + | 97,940 | 2,471,976 | ||||||
Target Corp | 36,990 | 1,945,674 | ||||||
The Home Depot Inc | 101,660 | 3,288,701 | ||||||
Time Warner Cable Inc | 45,555 | 2,428,537 | ||||||
Time Warner Inc | 127,593 | 3,989,833 | ||||||
25,715,752 | ||||||||
Consumer Staples - 12.8% | ||||||||
Altria Group Inc | 67,410 | 1,383,253 | ||||||
CVS Caremark Corp | 50,430 | 1,843,721 | ||||||
Kimberly-Clark Corp | 68,300 | 4,294,704 | ||||||
Lorillard Inc | 22,760 | 1,712,462 | ||||||
Philip Morris International Inc | 86,750 | 4,524,880 | ||||||
The Procter & Gamble Co | 26,070 | 1,649,449 | ||||||
Unilever PLC ADR (United Kingdom) | 72,660 | 2,127,485 | ||||||
Wal-Mart Stores Inc | 57,910 | 3,219,796 | ||||||
20,755,750 | ||||||||
Energy - 14.0% | ||||||||
Devon Energy Corp | 21,900 | 1,411,017 | ||||||
El Paso Corp | 356,770 | 3,867,387 | ||||||
Exxon Mobil Corp | 54,770 | 3,668,495 | ||||||
Halliburton Co | 85,510 | 2,576,416 | ||||||
Royal Dutch Shell PLC ADR (United Kingdom) | 33,380 | 1,931,367 | ||||||
Suncor Energy Inc (Canada) | 77,770 | 2,530,636 | ||||||
Total SA ADR (France) | 86,440 | 5,015,249 | ||||||
Transocean Ltd (Switzerland) * | 19,778 | 1,708,424 | ||||||
22,708,991 | ||||||||
Financials - 24.0% | ||||||||
American Express Co | 61,640 | 2,543,266 | ||||||
Bank of America Corp | 324,670 | 5,795,359 | ||||||
Capital One Financial Corp | 29,417 | 1,218,158 | ||||||
JPMorgan Chase & Co | 140,180 | 6,273,055 | ||||||
Loews Corp | 88,840 | 3,311,955 | ||||||
Marsh & McLennan Cos Inc | 95,461 | 2,331,158 | ||||||
Morgan Stanley | 54,260 | 1,589,275 | ||||||
State Street Corp | 36,590 | 1,651,673 | ||||||
The Bank of New York Mellon Corp | 47,962 | 1,481,066 | ||||||
The Chubb Corp | 38,650 | 2,004,002 | ||||||
The Progressive Corp | 82,839 | 1,581,397 | ||||||
The Travelers Cos Inc | 52,420 | 2,827,535 | ||||||
Wells Fargo & Co | 201,750 | 6,278,460 | ||||||
38,886,359 | ||||||||
Health Care - 10.1% | ||||||||
Abbott Laboratories | 39,340 | 2,072,431 | ||||||
Johnson & Johnson | 50,290 | 3,278,908 | ||||||
Merck & Co Inc | 49,330 | 1,842,476 | ||||||
Novartis AG ADR (Switzerland) | 51,070 | 2,762,887 | ||||||
Pfizer Inc | 86,230 | 1,478,845 | ||||||
Roche Holding AG (Switzerland) + | 9,530 | 1,547,772 | ||||||
UnitedHealth Group Inc * | 49,840 | 1,628,273 | ||||||
WellPoint Inc * | 28,430 | 1,830,323 | ||||||
16,441,915 | ||||||||
Industrials - 6.5% | ||||||||
General Electric Co | 200,880 | 3,656,016 | ||||||
Raytheon Co | 58,330 | 3,331,810 | ||||||
United Technologies Corp | 48,990 | 3,606,154 | ||||||
10,593,980 | ||||||||
Information Technology - 5.7% | ||||||||
Hewlett-Packard Co | 49,830 | 2,648,464 | ||||||
International Business Machines Corp | 27,160 | 3,483,270 | ||||||
Microsoft Corp | 104,600 | 3,061,642 | ||||||
9,193,376 | ||||||||
Materials - 1.8% | ||||||||
Air Products & Chemicals Inc | 39,890 | 2,949,865 | ||||||
Telecommunication Services - 4.6% | ||||||||
AT&T Inc | 84,257 | 2,177,201 | ||||||
CenturyTel Inc | 81,380 | 2,885,735 | ||||||
Verizon Communications Inc | 77,880 | 2,415,838 | ||||||
7,478,774 | ||||||||
Utilities - 2.1% | ||||||||
Sempra Energy | 67,360 | 3,361,264 | ||||||
Total Common Stocks (Cost $139,100,902) | 158,086,026 | |||||||
SHORT-TERM INVESTMENT - 2.4% | ||||||||
Money Market Fund - 2.4% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 3,833,092 | 3,833,092 | ||||||
Total Short-Term Investment (Cost $3,833,092) | 3,833,092 | |||||||
TOTAL INVESTMENTS - 99.8% (Cost $142,933,994) | 161,919,118 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.2% | 392,591 | |||||||
NET ASSETS - 100.0% | $ | 162,311,709 | ||||||
See Notes to Financial Statements | C-11 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL LARGE-CAP VALUE FUND
Schedule of Investments (Continued)
March 31, 2010
PL LARGE-CAP VALUE FUND
Schedule of Investments (Continued)
March 31, 2010
Notes to Schedule of Investments
(a) | As of March 31, 2010, the Fund was diversified as a percentage of net assets as follows: |
Financials | 24.0 | % | ||
Consumer Discretionary | 15.8 | % | ||
Energy | 14.0 | % | ||
Consumer Staples | 12.8 | % | ||
Health Care | 10.1 | % | ||
Industrials | 6.5 | % | ||
Information Technology | 5.7 | % | ||
Telecommunication Services | 4.6 | % | ||
Short-Term Investment | 2.4 | % | ||
Utilities | 2.1 | % | ||
Materials | 1.8 | % | ||
99.8 | % | |||
Other Assets & Liabilities, Net | 0.2 | % | ||
100.0 | % | |||
(b) | Securities with a total aggregate value of $4,019,748 or 2.5% of the net assets were valued under the fair value procedures established by the Funds’ Board of Trustees, including considerations to determine fair values for certain foreign equity securities, if applicable. | |
(c) | Fair Value Measurements |
The following is a summary of the Fund’s holdings as categorized under the three-tier hierarchy of inputs used in valuing the Fund’s assets and liabilities (See Note 10 in Notes to Financial Statements) as of March 31, 2010:
Level 2 | Level 3 | |||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||
March 31, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||
Assets | ||||||||||||||||||
Common Stocks | ||||||||||||||||||
Consumer Discretionary | $ | 25,715,752 | $ | 23,243,776 | $ | 2,471,976 | $ | — | ||||||||||
Consumer Staples | 20,755,750 | 20,755,750 | — | — | ||||||||||||||
Energy | 22,708,991 | 22,708,991 | — | — | ||||||||||||||
Financials | 38,886,359 | 38,886,359 | — | — | ||||||||||||||
Health Care | 16,441,915 | 14,894,143 | 1,547,772 | — | ||||||||||||||
Industrials | 10,593,980 | 10,593,980 | — | — | ||||||||||||||
Information Technology | 9,193,376 | 9,193,376 | — | — | ||||||||||||||
Materials | 2,949,865 | 2,949,865 | — | — | ||||||||||||||
Telecommunication Services | 7,478,774 | 7,478,774 | — | — | ||||||||||||||
Utilities | 3,361,264 | 3,361,264 | — | — | ||||||||||||||
158,086,026 | 154,066,278 | 4,019,748 | — | |||||||||||||||
Short-Term Investment | 3,833,092 | 3,833,092 | — | — | ||||||||||||||
Total | $ | 161,919,118 | $ | 157,899,370 | $ | 4,019,748 | $ | — | ||||||||||
See Notes to Financial Statements | C-12 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL SHORT DURATION BOND FUND
Schedule of Investments
March 31, 2010
PL SHORT DURATION BOND FUND
Schedule of Investments
March 31, 2010
Principal | ||||||||
Amount | Value | |||||||
CORPORATE BONDS & NOTES - 39.0% | ||||||||
Consumer Discretionary - 1.7% | ||||||||
Cox Communications Inc | ||||||||
7.125% due 10/01/12 | $ | 325,000 | $ | 363,449 | ||||
Reed Elsevier Capital Inc | ||||||||
4.625% due 06/15/12 | 500,000 | 526,858 | ||||||
Time Warner Cable Inc | ||||||||
5.400% due 07/02/12 | 381,000 | 409,221 | ||||||
1,299,528 | ||||||||
Consumer Staples - 2.3% | ||||||||
Anheuser-Busch InBev Worldwide Inc | ||||||||
3.000% due 10/15/12 | 250,000 | 256,866 | ||||||
7.200% due 01/15/14 ~ | 175,000 | 200,653 | ||||||
General Mills Inc | ||||||||
6.000% due 02/15/12 | 200,000 | 217,704 | ||||||
Kellogg Co | ||||||||
5.125% due 12/03/12 | 300,000 | 325,107 | ||||||
Kraft Foods Inc | ||||||||
6.000% due 02/11/13 | 75,000 | 82,371 | ||||||
6.250% due 06/01/12 | 250,000 | 273,733 | ||||||
The Kroger Co | ||||||||
6.750% due 04/15/12 | 100,000 | 109,311 | ||||||
Wal-Mart Stores Inc | ||||||||
3.200% due 05/15/14 | 250,000 | 256,576 | ||||||
1,722,321 | ||||||||
Energy - 1.5% | ||||||||
Enterprise Products Operating LLC | ||||||||
4.600% due 08/01/12 | 150,000 | 158,313 | ||||||
6.375% due 02/01/13 | 100,000 | 109,309 | ||||||
7.625% due 02/15/12 | 100,000 | 110,169 | ||||||
Williams Partners LP | ||||||||
3.800% due 02/15/15 ~ | 325,000 | 324,745 | ||||||
XTO Energy Inc | ||||||||
5.900% due 08/01/12 | 100,000 | 109,877 | ||||||
7.500% due 04/15/12 | 300,000 | 336,263 | ||||||
1,148,676 | ||||||||
Financials - 24.4% | ||||||||
African Development Bank (Multi-National) | ||||||||
1.750% due 10/01/12 | 600,000 | 603,222 | ||||||
Bank of America Corp | ||||||||
0.471% due 06/22/12 § | 1,200,000 | 1,205,822 | ||||||
2.100% due 04/30/12 | 1,000,000 | 1,018,930 | ||||||
Bank of Tokyo-Mitsubishi UFJ Ltd (Japan) | ||||||||
2.600% due 01/22/13 ~ | 125,000 | 125,983 | ||||||
BB&T Corp | ||||||||
3.850% due 07/27/12 | 250,000 | 260,681 | ||||||
Citigroup Funding Inc | ||||||||
2.125% due 07/12/12 | 1,000,000 | 1,018,495 | ||||||
Citigroup Inc | ||||||||
2.125% due 04/30/12 | 2,300,000 | 2,343,288 | ||||||
Commonwealth Bank of Australia (Australia) | ||||||||
2.500% due 12/10/12 ~ | 100,000 | 101,840 | ||||||
Danske Bank A/S (Denmark) | ||||||||
1.102% due 08/23/10 § | 200,000 | 200,065 | ||||||
Dexia Credit Local (France) | ||||||||
2.375% due 09/23/11 ~ | 600,000 | 612,979 | ||||||
General Electric Capital Corp | ||||||||
2.000% due 09/28/12 | 800,000 | 811,380 | ||||||
General Motors Acceptance Corp | ||||||||
1.750% due 10/30/12 | 1,600,000 | 1,610,264 | ||||||
2.200% due 12/19/12 | 500,000 | 507,724 | ||||||
HSBC Finance Corp | ||||||||
0.460% due 08/09/11 § | 100,000 | 99,422 | ||||||
0.519% due 04/24/12 § | 250,000 | 247,998 | ||||||
Kreditanstalt fuer Wiederaufbau (Germany) | ||||||||
1.875% due 01/14/13 | 500,000 | 502,125 | ||||||
3.750% due 06/27/11 | 800,000 | 829,514 | ||||||
Lloyds TSB Bank PLC (United Kingdom) | ||||||||
4.375% due 01/12/15 ~ | 150,000 | 148,012 | ||||||
Metropolitan Life Global Funding I | ||||||||
2.500% due 01/11/13 ~ | 525,000 | 525,763 | ||||||
Morgan Stanley | ||||||||
6.000% due 05/13/14 | 200,000 | 216,224 | ||||||
PNC Funding Corp | ||||||||
1.875% due 06/22/11 | 600,000 | 607,161 | ||||||
Prudential Financial Inc | ||||||||
2.750% due 01/14/13 | 325,000 | 325,611 | ||||||
Rabobank Nederland NV (Netherlands) | ||||||||
4.200% due 05/13/14 ~ | 150,000 | 157,862 | ||||||
Reinsurance Group of America Inc | ||||||||
6.750% due 12/15/11 | 175,000 | 187,707 | ||||||
Simon Property Group LP | ||||||||
4.200% due 02/01/15 | 275,000 | 275,996 | ||||||
Sovereign Bank | ||||||||
5.125% due 03/15/13 | 350,000 | 358,989 | ||||||
Sun Life Financial Global Funding LP | ||||||||
0.501% due 10/06/13 § ~ | 375,000 | 363,177 | ||||||
Suncorp-Metway Ltd (Australia) | ||||||||
1.501% due 04/15/11 § ~ | 900,000 | 910,946 | ||||||
The Bear Stearns Cos Inc LLC | ||||||||
6.950% due 08/10/12 | 500,000 | 554,223 | ||||||
US Central Federal Credit Union | ||||||||
1.250% due 10/19/11 | 500,000 | 503,186 | ||||||
1.900% due 10/19/12 | 300,000 | 302,951 | ||||||
Wachovia Corp | ||||||||
5.500% due 05/01/13 | 475,000 | 513,348 | ||||||
Waddell & Reed Financial Inc | ||||||||
5.600% due 01/15/11 | 150,000 | 154,714 | ||||||
WEA Finance LLC | ||||||||
5.400% due 10/01/12 ~ | 75,000 | 79,560 | ||||||
Western Corporate Federal Credit Union | ||||||||
1.750% due 11/02/12 | 200,000 | 200,702 | ||||||
18,485,864 | ||||||||
Health Care - 1.8% | ||||||||
Express Scripts Inc | ||||||||
5.250% due 06/15/12 | 225,000 | 240,032 | ||||||
Merck & Co Inc | ||||||||
1.875% due 06/30/11 | 125,000 | 126,228 | ||||||
Novartis Capital Corp | ||||||||
1.900% due 04/24/13 | 400,000 | 400,034 | ||||||
Roche Holdings Inc | ||||||||
5.000% due 03/01/14 ~ | 225,000 | 243,245 | ||||||
St Jude Medical Inc | ||||||||
2.200% due 09/15/13 | 350,000 | 348,882 | ||||||
1,358,421 | ||||||||
Industrials - 0.1% | ||||||||
CSX Corp | ||||||||
6.750% due 03/15/11 | 100,000 | 105,227 | ||||||
Information Technology - 1.0% | ||||||||
Fiserv Inc | ||||||||
6.125% due 11/20/12 | 350,000 | 381,157 | ||||||
Hewlett-Packard Co | ||||||||
2.250% due 05/27/11 | 350,000 | 355,484 | ||||||
736,641 | ||||||||
See Notes to Financial Statements | C-13 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL SHORT DURATION BOND FUND
Schedule of Investments (Continued)
March 31, 2010
PL SHORT DURATION BOND FUND
Schedule of Investments (Continued)
March 31, 2010
Principal | ||||||||
Amount | Value | |||||||
Telecommunication Services - 4.6% | ||||||||
BellSouth Corp | ||||||||
4.950% due 04/26/10 ~ | $ | 700,000 | $ | 701,588 | ||||
Rogers Communications Inc (Canada) | ||||||||
5.500% due 03/15/14 | 50,000 | 53,809 | ||||||
6.250% due 06/15/13 | 50,000 | 55,138 | ||||||
6.375% due 03/01/14 | 125,000 | 138,832 | ||||||
7.875% due 05/01/12 | 150,000 | 167,193 | ||||||
Telecom Italia Capital SA (Luxembourg) | ||||||||
5.250% due 11/15/13 | 375,000 | 393,068 | ||||||
Telefonica Emisiones Sau (Spain) | ||||||||
5.855% due 02/04/13 | 450,000 | 489,577 | ||||||
Verizon Wireless Capital LLC | ||||||||
3.750% due 05/20/11 | 775,000 | 799,371 | ||||||
7.375% due 11/15/13 | 100,000 | 115,754 | ||||||
Vodafone Group PLC (United Kingdom) | ||||||||
5.350% due 02/27/12 | 550,000 | 586,684 | ||||||
3,501,014 | ||||||||
Utilities - 1.6% | ||||||||
CenterPoint Energy Resources Corp | ||||||||
7.875% due 04/01/13 | 75,000 | 85,930 | ||||||
Duke Energy Corp | ||||||||
6.300% due 02/01/14 | 225,000 | 250,846 | ||||||
Enel Finance International SA (Luxembourg) | ||||||||
5.700% due 01/15/13 ~ Δ | 250,000 | 270,385 | ||||||
FirstEnergy Corp | ||||||||
6.450% due 11/15/11 | 5,000 | 5,305 | ||||||
MidAmerican Energy Holdings Co | ||||||||
5.000% due 02/15/14 | 250,000 | 265,390 | ||||||
Progress Energy Inc | ||||||||
6.050% due 03/15/14 | 150,000 | 165,202 | ||||||
Southern Co | ||||||||
0.649% due 10/21/11 § | 125,000 | 125,750 | ||||||
1,168,808 | ||||||||
Total Corporate Bonds & Notes (Cost $29,105,505) | 29,526,500 | |||||||
MORTGAGE-BACKED SECURITIES - 16.1% | ||||||||
Collateralized Mortgage Obligations - Residential - 4.6% | ||||||||
Citimortgage Alternative Loan Trust | ||||||||
6.000% due 12/25/36 “ | 568,941 | 408,942 | ||||||
Fannie Mae | ||||||||
1.086% due 04/25/48 “ § | 347,067 | 348,084 | ||||||
5.000% due 08/25/19 “ | 1,118,752 | 1,188,462 | ||||||
Freddie Mac | ||||||||
0.580% due 11/15/36 “ § | 452,599 | 451,660 | ||||||
4.500% due 07/15/22 “ | 824,069 | 861,486 | ||||||
Structured Adjustable Rate Mortgage Loan Trust | ||||||||
2.950% due 11/25/34 “ § | 329,141 | 268,595 | ||||||
3,527,229 | ||||||||
Fannie Mae - 6.6% | ||||||||
2.815% due 09/01/34 “ § | 1,205,785 | 1,245,055 | ||||||
4.500% due 06/01/13 - 06/01/23 “ | 752,636 | 782,098 | ||||||
5.000% due 01/01/20 - 10/01/39 “ | 307,373 | 317,733 | ||||||
6.000% due 10/01/21 - 02/01/38 “ | 2,433,762 | 2,624,644 | ||||||
4,969,530 | ||||||||
Freddie Mac - 4.9% | ||||||||
5.000% due 11/01/16 - 10/01/39 ” | 3,298,468 | 3,498,957 | ||||||
5.500% due 01/01/20 - 07/01/20 ” | 171,612 | 184,960 | ||||||
3,683,917 | ||||||||
Total Mortgage-Backed Securities (Cost $12,192,128) | 12,180,676 | |||||||
ASSET-BACKED SECURITIES - 4.5% | ||||||||
Bank of America Auto Trust | ||||||||
1.670% due 12/16/13 “ ~ Δ | 500,000 | 503,917 | ||||||
Chase Issuance Trust | ||||||||
4.960% due 09/17/12 “ | 1,000,000 | 1,020,510 | ||||||
College Loan Corp Trust | ||||||||
0.409% due 04/25/21 “ § | 1,000,000 | 997,015 | ||||||
Ford Credit Auto Owner Trust | ||||||||
1.510% due 01/15/14 “ | 600,000 | 602,764 | ||||||
SLM Student Loan Trust | ||||||||
0.649% due 10/27/14 “ § | 288,614 | 289,001 | ||||||
Total Asset-Backed Securities (Cost $3,374,598) | 3,413,207 | |||||||
U.S. GOVERNMENT AGENCY ISSUES - 8.6% | ||||||||
Fannie Mae | ||||||||
2.050% due 04/01/11 | 1,000,000 | 1,000,000 | ||||||
4.680% due 06/15/11 | 1,800,000 | 1,884,602 | ||||||
Federal Home Loan Bank | ||||||||
3.125% due 06/10/11 ‡ | 2,500,000 | 2,564,755 | ||||||
3.750% due 09/09/11 | 1,000,000 | 1,042,072 | ||||||
Total U.S. Government Agency Issues (Cost $6,335,263) | 6,491,429 | |||||||
U.S. TREASURY OBLIGATIONS - 15.6% | ||||||||
U.S. Treasury Inflation Protected Securities - 5.1% | ||||||||
0.875% due 04/15/10 ^ | 3,888,478 | 3,889,998 | ||||||
U.S. Treasury Notes - 10.2% | ||||||||
0.875% due 01/31/12 | 1,500,000 | 1,498,770 | ||||||
1.000% due 03/31/12 | 4,600,000 | 4,599,278 | ||||||
1.375% due 03/15/13 | 1,400,000 | 1,392,122 | ||||||
2.500% due 03/31/15 | 200,000 | 199,485 | ||||||
7,689,655 | ||||||||
U.S. Treasury Bonds - 0.3% | ||||||||
4.375% due 11/15/39 | 100,000 | 94,594 | ||||||
4.625% due 02/15/40 | 100,000 | 98,594 | ||||||
193,188 | ||||||||
Total U.S. Treasury Obligations (Cost $11,770,582) | 11,772,841 | |||||||
FOREIGN GOVERNMENT BONDS & NOTES - 0.9% | ||||||||
Kommunalbanken A/S (Norway) | ||||||||
2.000% due 01/14/13 | 700,000 | 706,222 | ||||||
Total Foreign Government Bonds & Notes (Cost $704,643) | 706,222 | |||||||
See Notes to Financial Statements | C-14 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL SHORT DURATION BOND FUND
Schedule of Investments (Continued)
March 31, 2010
PL SHORT DURATION BOND FUND
Schedule of Investments (Continued)
March 31, 2010
Shares | Value | |||||||
SHORT-TERM INVESTMENT - 13.4% | ||||||||
Money Market Fund - 13.4% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 10,168,022 | $ | 10,168,022 | |||||
Total Short-Term Investment (Cost $10,168,022) | 10,168,022 | |||||||
TOTAL INVESTMENTS - 98.1% (Cost $73,650,741) | 74,258,897 | |||||||
OTHER ASSETS & LIABILITIES, NET - 1.9% | 1,414,759 | |||||||
NET ASSETS - 100.0% | $ | 75,673,656 | ||||||
Notes to Schedule of Investments
(a) | As of March 31, 2010, the Fund was diversified as a percentage of net assets as follows: |
Corporate Bonds & Notes | 39.0 | % | ||
Mortgage-Backed Securities | 16.1 | % | ||
U.S. Treasury Obligations | 15.6 | % | ||
Short-Term Investment | 13.4 | % | ||
U.S. Government Agency Issues | 8.6 | % | ||
Asset-Backed Securities | 4.5 | % | ||
Foreign Government Bonds & Notes | 0.9 | % | ||
98.1 | % | |||
Other Assets & Liabilities, Net | 1.9 | % | ||
100.0 | % | |||
(b) | As of March 31, 2010, the Fund’s Standard & Poor’s quality ratings on its investments, as a percentage of total fixed income investments were as follows: |
AAA / U.S. Government & Agency Issues | 73.8 | % | ||
AA | 4.8 | % | ||
A | 10.4 | % | ||
BBB | 10.4 | % | ||
Not Rated | 0.6 | % | ||
100.0 | % | |||
(c) | Open futures contracts outstanding as of March 31, 2010 were as follows: |
Unrealized | ||||||||||||
Number of | Notional | Appreciation | ||||||||||
Contracts | Amount | (Depreciation) | ||||||||||
Long Futures Outstanding | ||||||||||||
Eurodollar (06/10) | 14 | $ | 14,000,000 | $ | 23,490 | |||||||
Eurodollar (09/10) | 4 | 4,000,000 | 540 | |||||||||
Eurodollar (12/10) | 4 | 4,000,000 | 390 | |||||||||
U.S. Treasury 2-Year Notes (06/10) | 14 | 2,800,000 | 741 | |||||||||
U.S. Treasury 2-Year Notes (06/10) | 112 | 22,400,000 | (17,852 | ) | ||||||||
U.S. Treasury 10-Year Notes (06/10) | 1 | 100,000 | 22 | |||||||||
Short Futures Outstanding | ||||||||||||
Eurodollar (03/11) | 3 | 3,000,000 | (270 | ) | ||||||||
Eurodollar (06/11) | 3 | 3,000,000 | (270 | ) | ||||||||
Eurodollar (09/11) | 4 | 4,000,000 | (360 | ) | ||||||||
Eurodollar (12/11) | 4 | 4,000,000 | (310 | ) | ||||||||
U.S. Treasury 5-Year Notes (06/10) | 10 | 1,000,000 | 7,751 | |||||||||
U.S. Treasury 30-Year Bonds (06/10) | 5 | 500,000 | 3,927 | |||||||||
U.S. Treasury 30-Year Bonds (06/10) | 3 | 300,000 | (865 | ) | ||||||||
$ | 16,934 | |||||||||||
(d) | As of March 31, 2010, securities with a total aggregate value of $338,548 were fully or partially segregated with the broker(s)/ custodian as collateral for open futures contracts. | |
(e) | 1.0% of the Fund’s net assets were reported illiquid by the portfolio manager under the Funds’ policy. | |
(f) | Fair Value Measurements | |
The following is a summary of the Fund’s holdings as categorized under the three-tier hierarchy of inputs used in valuing the Fund’s assets and liabilities (See Note 10 in Notes to Financial Statements) as of March 31, 2010: |
Level 2 | Level 3 | |||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||
March 31, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||
Assets | ||||||||||||||||||
Corporate Bonds & Notes | $ | 29,526,500 | $ | — | $ | 29,526,500 | $ | — | ||||||||||
Mortgage-Backed Securities | 12,180,676 | — | 12,180,676 | — | ||||||||||||||
Asset-Backed Securities | 3,413,207 | — | 3,413,207 | — | ||||||||||||||
U.S. Government Agency Issues | 6,491,429 | — | 6,491,429 | — | ||||||||||||||
U.S. Treasury Obligations | 11,772,841 | — | 11,772,841 | — | ||||||||||||||
Foreign Government Notes | 706,222 | — | 706,222 | — | ||||||||||||||
Short-Term Investment | 10,168,022 | 10,168,022 | — | — | ||||||||||||||
Investments in Other Financial Instruments (1) | 36,861 | 36,861 | — | — | ||||||||||||||
74,295,758 | 10,204,883 | 64,090,875 | — | |||||||||||||||
Liabilities | ||||||||||||||||||
Investments in Other Financial Instruments (1) | (19,927 | ) | (19,927 | ) | — | — | ||||||||||||
Total | $ | 74,275,831 | $ | 10,184,956 | $ | 64,090,875 | $ | — | ||||||||||
(1) | Investments in other financial instruments may include open futures contracts, swap contracts, options, and forward foreign currency contracts. |
See Notes to Financial Statements | C-15 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL FLOATING RATE LOAN FUND
Schedule of Investments
March 31, 2010
PL FLOATING RATE LOAN FUND
Schedule of Investments
March 31, 2010
Principal | ||||||||
Amount | Value | |||||||
SENIOR LOAN NOTES - 89.4% | ||||||||
Consumer Discretionary - 33.0% | ||||||||
Asurion Corp (1st Lien) | ||||||||
3.232% due 07/03/14 § | $ | 497,500 | $ | 493,326 | ||||
Burlington Coat Factory Warehouse Corp | ||||||||
2.500% due 05/28/13 § | 496,124 | 476,244 | ||||||
Catalina Marketing Corp (Initial Term Loan) | ||||||||
2.990% due 10/01/14 § | 978,284 | 953,827 | ||||||
Cengage Learning Acquisitions Inc | ||||||||
2.790% due 07/03/14 § | 992,366 | 877,882 | ||||||
Cumulus Media Inc | ||||||||
(Replacement Term Loan) | ||||||||
4.240% due 06/11/14 § | 1,054,428 | 952,280 | ||||||
Dana Holding Corp (Advance) | ||||||||
4.502% due 01/30/15 § | 460,321 | 453,775 | ||||||
Dollar General Corp Tranche B-1 | ||||||||
2.998% due 07/07/14 § | 426,848 | 423,211 | ||||||
DSW Holdings Inc | ||||||||
4.240% due 03/02/12 § | 500,000 | 472,917 | ||||||
Entercom Radio LLC Term A | ||||||||
2.247% due 06/29/12 § | 112,878 | 107,704 | ||||||
Federal-Mogul Corp | ||||||||
Tranche B | ||||||||
2.169% due 12/29/14 § | 658,792 | 610,915 | ||||||
Tranche C | ||||||||
2.176% due 12/28/15 § | 336,119 | 311,691 | ||||||
Ford Motor Co Tranche B-1 | ||||||||
3.258% due 12/15/13 § | 992,318 | 962,375 | ||||||
Guitar Center Inc | ||||||||
3.749% due 10/09/14 § | 971,601 | 910,273 | ||||||
Harland Clarke Holding Corp Tranche B | ||||||||
2.782% due 06/30/14 § | 989,822 | 907,419 | ||||||
Las Vegas Sands LLC | ||||||||
(Delayed Draw I Term Loan) | ||||||||
2.050% due 05/23/14 § | 166,808 | 153,070 | ||||||
Tranche B | ||||||||
2.050% due 05/23/14 § | 825,552 | 757,559 | ||||||
Metro-Goldwyn-Mayer Inc Tranche B | ||||||||
20.500% due 04/09/12 § Ω | 1,494,825 | 722,950 | ||||||
MGM Mirage | ||||||||
‘A2’ | ||||||||
due 02/21/14 § ∞ | 291,555 | 241,262 | ||||||
‘C’ | ||||||||
due 02/21/14 § ∞ | 108,445 | 96,529 | ||||||
‘D’ | ||||||||
6.000% due 10/03/11 § | 500,000 | 488,068 | ||||||
Michaels Stores Inc | ||||||||
Term B-1 | ||||||||
2.537% due 10/31/13 § | 201,022 | 191,724 | ||||||
Term B-2 | ||||||||
4.787% due 07/31/16 § | 743,297 | 725,800 | ||||||
Nielsen Finance LLC | ||||||||
‘A’ (Dollar Term Loan) | ||||||||
2.229% due 08/09/13 § | 634,412 | 609,628 | ||||||
‘B’ (Dollar Term Loan) | ||||||||
3.979% due 05/01/16 § | 815,150 | 802,580 | ||||||
Sabre Inc (Initial Term Loan) | ||||||||
2.248% due 09/30/14 § | 1,981,786 | 1,851,176 | ||||||
The Weather Channel Holding Corp | ||||||||
(Replacement Term Loan) | ||||||||
5.000% due 09/14/15 § | 246,074 | 249,247 | ||||||
Univision Communications Inc | ||||||||
(Initial Term Loan) | ||||||||
2.540% due 09/29/14 § | 500,000 | 447,105 | ||||||
VML U.S. Finance LLC Term B | ||||||||
(Delayed Draw Project Loan) | ||||||||
4.800% due 05/25/12 § | 152,661 | 148,501 | ||||||
(Funded Project Loan) | ||||||||
4.800% due 05/27/13 § | 681,252 | 662,687 | ||||||
WideOpenWest Finance LLC Series A | ||||||||
(New Term Loan) | ||||||||
6.759% due 06/30/14 § | 500,000 | 503,438 | ||||||
17,565,163 | ||||||||
Consumer Staples - 1.4% | ||||||||
KIK Custom Products Inc | ||||||||
(1st Lien) | ||||||||
2.500% due 06/02/14 § | 425,738 | 364,538 | ||||||
(2nd Lien) | ||||||||
5.249% due 12/01/14 § | 500,000 | 297,750 | ||||||
(Canadian Term Loan 1st Lien) | ||||||||
2.500% due 06/02/14 § | 72,984 | 62,492 | ||||||
724,780 | ||||||||
Energy - 5.3% | ||||||||
ATP Oil & Gas Corp | ||||||||
Tranche B-1 | ||||||||
11.250% due 07/15/14 § | 231,446 | 234,810 | ||||||
Tranche B-2 | ||||||||
12.250% due 01/15/11 § | 32,759 | 33,235 | ||||||
Big West Oil LLC | ||||||||
due 01/30/15 § ∞ | 500,000 | 507,915 | ||||||
Calumet Lubricants Co LP | ||||||||
4.250% due 01/03/15 § | 584,675 | 544,116 | ||||||
Calumet Lubricants Co LP | ||||||||
(Credit-Linked Letter of Credit) | ||||||||
4.104% due 01/03/15 § | 78,952 | 73,475 | ||||||
Coffeyville Resources LLC | ||||||||
due 12/30/13 § ∞ | 473,866 | 481,230 | ||||||
Tranche D | ||||||||
8.500% due 12/30/13 § | 6,668 | 6,771 | ||||||
Venoco Inc (2nd Lien) | ||||||||
4.250% due 05/07/14 § | 988,971 | 941,382 | ||||||
2,822,934 | ||||||||
Financials - 6.8% | ||||||||
American General Finance Corp | ||||||||
(Revolver Credit Facility) | ||||||||
due 07/14/10 § ∞ | 750,000 | 737,111 | ||||||
First Data Corp Tranche B-1 (Initial Term Loan) | ||||||||
3.000% due 09/24/14 § | 782,154 | 694,021 | ||||||
HUB International Ltd | ||||||||
(Delayed Draw Term Loan) | ||||||||
2.790% due 06/13/14 § | 179,595 | 168,203 | ||||||
(Initial Term Loan) | ||||||||
2.790% due 06/13/14 § | 798,992 | 748,308 | ||||||
Nuveen Investments Inc | ||||||||
(1st Lien) | ||||||||
3.291% due 11/13/14 § | 500,000 | 460,000 | ||||||
Spirit Finance Corp | ||||||||
3.249% due 08/01/13 § | 1,000,000 | 790,000 | ||||||
3,597,643 | ||||||||
Health Care - 6.9% | ||||||||
Aveta Inc | ||||||||
(Acquisition Term Loan) | ||||||||
5.500% due 08/22/11 § | 315,518 | 310,785 | ||||||
(New Term Loan) | ||||||||
5.500% due 08/22/11 § | 57,194 | 56,336 | ||||||
(Original Term Loan) | ||||||||
5.500% due 08/22/11 § | 488,063 | 480,742 |
See Notes to Financial Statements | C-16 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL FLOATING RATE LOAN FUND
Schedule of Investments (Continued)
March 31, 2010
PL FLOATING RATE LOAN FUND
Schedule of Investments (Continued)
March 31, 2010
Principal | ||||||||
Amount | Value | |||||||
CHS/Community Health Systems Inc | ||||||||
(Delayed Draw Term Loan) | ||||||||
2.502% due 07/25/14 § | $ | 24,270 | $ | 23,701 | ||||
(Funded Term Loan) | ||||||||
2.502% due 07/25/14 § | 473,935 | 462,156 | ||||||
HCA Inc Tranche B-1 | ||||||||
2.540% due 11/18/13 § | 581,925 | 568,273 | ||||||
IMS Health Inc Tranche B | ||||||||
(Dollar Term Loan) | ||||||||
5.250% due 02/26/16 § | 500,000 | 504,438 | ||||||
MultiPlan Inc | ||||||||
(Incremental Term D Loan) | ||||||||
6.000% due 04/12/13 § | 500,000 | 501,665 | ||||||
Term A | ||||||||
5.500% due 10/30/14 § | 330,508 | 331,664 | ||||||
Term B-1 | ||||||||
5.750% due 04/30/15 § | 152,119 | 152,691 | ||||||
Term B-2 | ||||||||
5.750% due 04/30/15 § | 253,305 | 254,259 | ||||||
3,646,710 | ||||||||
Industrials - 4.9% | ||||||||
AWAS Capital Inc (1st Lien) | ||||||||
2.063% due 03/24/13 § | 412,089 | 388,738 | ||||||
Brand Energy & Infrastructure Services Inc | ||||||||
(2nd Lien) | ||||||||
6.275% due 02/07/15 § | 500,000 | 451,250 | ||||||
Delta Air Lines Inc | ||||||||
8.750% due 09/27/13 § | 497,500 | 505,895 | ||||||
(2nd Lien) | ||||||||
due 04/30/14 § ∞ | 498,718 | 458,643 | ||||||
Hawker Beechcraft Acquisition Co LLC | ||||||||
due 03/26/14 § ∞ | 470,786 | 397,332 | ||||||
(LC Facility Deposit) | ||||||||
due 03/26/14 § ∞ | 28,001 | 23,632 | ||||||
US Airways Group Inc | ||||||||
2.745% due 03/21/14 § | 493,151 | 406,233 | ||||||
2,631,723 | ||||||||
Information Technology - 8.6% | ||||||||
Brocade Communication Systems Inc | ||||||||
Term Loan (Borrowing) | ||||||||
7.000% due 10/07/13 § | 208,504 | 210,719 | ||||||
CCS Inc | ||||||||
3.248% due 11/14/14 § | 1,493,642 | 1,303,703 | ||||||
CDW Corp | ||||||||
4.230% due 10/10/14 § | 994,761 | 874,768 | ||||||
Kronos Inc | ||||||||
(2nd Lien) | ||||||||
6.040% due 06/11/15 § | 500,000 | 472,503 | ||||||
RedPrairie Corp | ||||||||
6.250% due 03/24/16 § | 500,000 | 500,628 | ||||||
SunGard Data Systems Inc Tranche B | ||||||||
3.873% due 02/28/16 § | 737,096 | 733,013 | ||||||
Vertafore Inc Term B-2 | ||||||||
(Original Term Loan) | ||||||||
5.500% due 07/31/14 § | 493,856 | 480,685 | ||||||
4,576,019 | ||||||||
Materials - 8.6% | ||||||||
Consolidated Container Co LLC (2nd Lien) | ||||||||
5.750% due 09/28/14 § | 500,000 | 445,000 | ||||||
Lyondell Chemical Co | ||||||||
(Dutch Revolving Credit Loan) | ||||||||
due 12/20/13 § Ω ∞ | 6,820 | 5,349 | ||||||
3.748% due 12/20/13 § Ω | 2,770 | 2,172 | ||||||
(Primary Revolving Credit Loan) | ||||||||
due 12/20/13 § Ω ∞ | 25,575 | 20,058 | ||||||
3.748% due 12/20/13 § Ω | 10,387 | 8,146 | ||||||
(Roll-Up Loan) | ||||||||
due 06/03/10 § ∞ | 658,917 | 702,570 | ||||||
5.799% due 06/03/10 § | 249,740 | 266,285 | ||||||
Tranche A | ||||||||
(Dollar Term Loan) | ||||||||
due 12/20/13 § Ω ∞ | 48,727 | 38,217 | ||||||
3.748% due 12/20/13 § Ω | 19,789 | 15,521 | ||||||
(Dutch Dollar Term Loan) | ||||||||
due 12/20/13 § Ω ∞ | 15,011 | 11,773 | ||||||
3.729% due 12/20/13 § Ω | 6,096 | 4,781 | ||||||
Tranche B-1 | ||||||||
(Dollar Term Loan) | ||||||||
due 12/22/14 § Ω ∞ | 84,960 | 66,634 | ||||||
7.000% due 12/22/14 § Ω | 34,505 | 27,062 | ||||||
(German Euro Term Loan) | ||||||||
due 12/22/14 § Ω ∞ | 19,579 | 15,356 | ||||||
3.998% due 12/22/14 § Ω | 7,952 | 6,237 | ||||||
Tranche B-2 | ||||||||
(Dollar Term Loan) | ||||||||
due 12/22/14 § Ω ∞ | 84,960 | 66,634 | ||||||
7.000% due 12/22/14 § Ω | 34,505 | 27,062 | ||||||
(German Euro Term Loan) | ||||||||
due 12/22/14 § Ω ∞ | 19,579 | 15,356 | ||||||
3.998% due 12/22/14 § Ω | 7,952 | 6,237 | ||||||
Tranche B-3 | ||||||||
(Dollar Term Loan) | ||||||||
due 12/22/14 § Ω ∞ | 84,960 | 66,634 | ||||||
7.000% due 12/22/14 § Ω | 34,505 | 27,062 | ||||||
(German Euro Term Loan) | ||||||||
due 12/22/14 § Ω ∞ | 19,579 | 15,356 | ||||||
3.998% due 12/22/14 § Ω | 7,952 | 6,237 | ||||||
Nalco Co | ||||||||
6.500% due 05/13/16 § | 496,250 | 502,143 | ||||||
Smurfit-Stone Container Enterprises Inc | ||||||||
due 02/22/16 § ∞ | 500,000 | 501,875 | ||||||
Solutia Inc | ||||||||
4.750% due 03/17/17 § | 250,000 | 252,794 | ||||||
Texas Petrochemical LP Term B | ||||||||
2.813% due 06/27/13 § | 162,058 | 153,144 | ||||||
(Incremental Term Loan) | ||||||||
2.813% due 06/27/13 § | 825,322 | 779,929 | ||||||
W.R. Grace & Co | ||||||||
(5 Year Revolver) | ||||||||
5.250% due 04/01/10 § | 142,857 | 249,286 | ||||||
(Revolving Credit Loan) | ||||||||
5.250% due 04/01/10 § | 142,857 | 249,286 | ||||||
4,554,196 | ||||||||
Telecommunication Services - 9.2% | ||||||||
Avaya Inc Term B-1 | ||||||||
3.002% due 10/24/14 § | 994,871 | 889,171 | ||||||
Digicel International Finance Limited | ||||||||
Tranche A | ||||||||
2.813% due 03/30/12 § | 733,362 | 722,361 | ||||||
Digicel International Finance Limited | ||||||||
Tranche A-T&T | ||||||||
2.813% due 09/30/12 § | 400,012 | 394,012 | ||||||
Integra Telecom Holdings Inc | ||||||||
(1st Lien) | ||||||||
10.750% due 08/31/13 § | 498,721 | 501,215 | ||||||
Level 3 Financing Inc Tranche A | ||||||||
2.501% due 03/13/14 § | 1,000,000 | 932,030 | ||||||
MetroPCS Wireless Inc Tranche B | ||||||||
2.500% due 11/03/13 § | 982,188 | 962,594 | ||||||
U.S. Telepacific Corp (Advance) | ||||||||
9.250% due 08/17/15 § | 500,000 | 504,063 | ||||||
4,905,446 | ||||||||
See Notes to Financial Statements | C-17 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL FLOATING RATE LOAN FUND
Schedule of Investments (Continued)
March 31, 2010
PL FLOATING RATE LOAN FUND
Schedule of Investments (Continued)
March 31, 2010
Principal | ||||||||
Amount | Value | |||||||
Utilities - 4.7% | ||||||||
Calpine Corp (1st Priority) | ||||||||
3.135% due 03/29/14 § | $ | 161,372 | $ | 156,740 | ||||
Coleto Creek Power LP (2nd Lien) | ||||||||
4.248% due 06/28/13 § | 962,500 | 792,455 | ||||||
Dynegy Holdings Inc | ||||||||
(Facility Term Loan) | ||||||||
4.000% due 04/02/13 § | 462,572 | 456,790 | ||||||
(Tranche B) | ||||||||
4.000% due 04/02/13 § | 37,142 | 36,677 | ||||||
Texas Competitive Electric Holdings Co LLC | ||||||||
Tranche B2 (Initial Term Loan) | ||||||||
3.730% due 10/10/14 § | 1,277,078 | 1,052,210 | ||||||
2,494,872 | ||||||||
Total Senior Loan Notes (Cost $46,238,887) | 47,519,486 | |||||||
Shares | ||||||||
SHORT-TERM INVESTMENT - 14.9% | ||||||||
Money Market Fund - 14.9% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 7,897,717 | 7,897,717 | ||||||
Total Short-Term Investment (Cost $7,897,717) | 7,897,717 | |||||||
TOTAL INVESTMENTS - 104.3% (Cost $54,136,604) | 55,417,203 | |||||||
OTHER ASSETS & LIABILITIES, NET - (4.3%) | (2,295,343 | ) | ||||||
NET ASSETS - 100.0% | $ | 53,121,860 | ||||||
Notes to Schedule of Investments
(a) | As of March 31, 2010, the Fund was diversified as a percentage of net assets as follows: |
Consumer Discretionary | 33.0 | % | ||
Short-Term Investment | 14.9 | % | ||
Telecommunication Services | 9.2 | % | ||
Information Technology | 8.6 | % | ||
Materials | 8.6 | % | ||
Health Care | 6.9 | % | ||
Financials | 6.8 | % | ||
Energy | 5.3 | % | ||
Industrials | 4.9 | % | ||
Utilities | 4.7 | % | ||
Consumer Staples | 1.4 | % | ||
104.3 | % | |||
Other Assets & Liabilities, Net | (4.3 | %) | ||
100.0 | % | |||
(b) | As of March 31, 2010, the Fund’s Standard & Poor’s quality ratings on its investments, as a percentage of total fixed income investments were as follows: |
BBB | 0.4 | % | ||
BB | 18.9 | % | ||
B | 54.7 | % | ||
CCC | 9.2 | % | ||
C | 1.0 | % | ||
Not Rated | 15.8 | % | ||
100.0 | % | |||
(c) | Senior Loans with a total aggregate value of $1,174,834 or 2.2% of the net assets were in default as of March 31, 2010. | |
(d) | Fair Value Measurements The following is a summary of the Fund’s holdings as categorized under the three-tier hierarchy of inputs used in valuing the Fund’s assets and liabilities (See Note 10 in Notes to Financial Statements) as of March 31, 2010: |
Level 2 | Level 3 | ||||||||||||||||||
Total Value at | Level 1 | Significant | Significant | ||||||||||||||||
March 31, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | ||||||||||||||||
Assets | |||||||||||||||||||
Senior Loan Notes | $ | 47,519,486 | $ | — | $ | 47,519,486 | $ | — | |||||||||||
Short-Term Investment | 7,897,717 | 7,897,717 | — | — | |||||||||||||||
Total | $ | 55,417,203 | $ | 7,897,717 | $ | 47,519,486 | $ | — | |||||||||||
See Notes to Financial Statements | C-18 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL GROWTH LT FUND
Schedule of Investments
March 31, 2010
PL GROWTH LT FUND
Schedule of Investments
March 31, 2010
Shares | Value | |||||||
PREFERRED STOCKS - 1.6% | ||||||||
Energy - 1.6% | ||||||||
Petroleo Brasileiro SA ADR (Brazil) | 35,351 | $ | 1,399,546 | |||||
Total Preferred Stocks (Cost $1,333,124) | 1,399,546 | |||||||
COMMON STOCKS - 92.6% | ||||||||
Consumer Discretionary - 5.6% | ||||||||
CBS Corp ‘B’ | 58,775 | 819,323 | ||||||
Crown Ltd (Australia) + | 93,757 | 702,926 | ||||||
Kohl’s Corp * | 8,080 | 442,622 | ||||||
Lamar Advertising Co ‘A’ * | 10,580 | 363,423 | ||||||
Limited Brands Inc | 27,270 | 671,387 | ||||||
McDonald’s Corp | 8,647 | 576,928 | ||||||
The Home Depot Inc | 42,260 | 1,367,111 | ||||||
4,943,720 | ||||||||
Consumer Staples - 12.0% | ||||||||
Altria Group Inc | 18,150 | 372,438 | ||||||
Anheuser-Busch InBev NV (Belgium) + | 79,325 | 3,989,883 | ||||||
Anheuser-Busch InBev NV Strip VVPR (Belgium) * | 110,992 | 1,049 | ||||||
Colgate-Palmolive Co | 12,955 | 1,104,543 | ||||||
CVS Caremark Corp | 20,258 | 740,632 | ||||||
Diageo PLC (United Kingdom) + | 42,595 | 716,143 | ||||||
Philip Morris International Inc | 6,805 | 354,949 | ||||||
Reckitt Benckiser Group PLC (United Kingdom) + | 11,174 | 613,943 | ||||||
Tesco PLC (United Kingdom) + | 249,648 | 1,650,562 | ||||||
The Coca-Cola Co | 4,865 | 267,575 | ||||||
Walgreen Co | 24,515 | 909,261 | ||||||
10,720,978 | ||||||||
Energy - 6.7% | ||||||||
Apache Corp | 8,950 | 908,425 | ||||||
EOG Resources Inc | 23,445 | 2,178,978 | ||||||
Occidental Petroleum Corp | 34,190 | 2,890,423 | ||||||
5,977,826 | ||||||||
Financials - 7.7% | ||||||||
ACE Ltd (Switzerland) | 15,905 | 831,832 | ||||||
Bank of America Corp | 48,149 | 859,460 | ||||||
Berkshire Hathaway Inc ‘B’ * | 5,020 | 407,975 | ||||||
ICICI Bank Ltd ADR (India) | 14,965 | 639,006 | ||||||
JPMorgan Chase & Co | 27,513 | 1,231,207 | ||||||
Morgan Stanley | 11,975 | 350,748 | ||||||
Prudential PLC (United Kingdom) + | 42,590 | 352,332 | ||||||
T. Rowe Price Group Inc | 18,870 | 1,036,529 | ||||||
The Goldman Sachs Group Inc | 6,955 | 1,186,732 | ||||||
6,895,821 | ||||||||
Health Care - 12.1% | ||||||||
Abbott Laboratories | 10,855 | 571,841 | ||||||
Baxter International Inc | 16,365 | 952,443 | ||||||
Bristol-Myers Squibb Co | 34,605 | 923,953 | ||||||
Celgene Corp * | 47,185 | 2,923,583 | ||||||
Covidien PLC (Ireland) | 47,540 | 2,390,311 | ||||||
Genzyme Corp * | 6,020 | 312,017 | ||||||
Gilead Sciences Inc * | 29,760 | 1,353,485 | ||||||
Roche Holding AG (Switzerland) + | 4,901 | 795,974 | ||||||
St. Jude Medical Inc * | 14,713 | 603,969 | ||||||
10,827,576 | ||||||||
Industrials - 10.5% | ||||||||
C.H. Robinson Worldwide Inc | 12,455 | 695,612 | ||||||
Canadian National Railway Co (Canada) | 21,916 | 1,327,890 | ||||||
Danaher Corp | 16,590 | 1,325,707 | ||||||
Emerson Electric Co | 18,695 | 941,106 | ||||||
Expeditors International of Washington Inc | 16,455 | 607,519 | ||||||
Illinois Tool Works Inc | 8,240 | 390,246 | ||||||
Masco Corp | 28,450 | 441,544 | ||||||
Precision Castparts Corp | 9,415 | 1,192,975 | ||||||
Tyco International Ltd (Switzerland) | 33,810 | 1,293,233 | ||||||
United Parcel Service Inc ‘B’ | 9,580 | 617,048 | ||||||
United Technologies Corp | 7,125 | 524,471 | ||||||
9,357,351 | ||||||||
Information Technology - 29.4% | ||||||||
Amphenol Corp ‘A’ | 18,245 | 769,756 | ||||||
Apple Inc * | 18,299 | 4,298,984 | ||||||
Cisco Systems Inc * | 149,830 | 3,900,075 | ||||||
Corning Inc | 28,480 | 575,581 | ||||||
eBay Inc * | 50,820 | 1,369,599 | ||||||
Google Inc ‘A’ * | 2,810 | 1,593,298 | ||||||
International Business Machines Corp | 23,665 | 3,035,036 | ||||||
KLA-Tencor Corp | 27,778 | 858,896 | ||||||
Marvell Technology Group Ltd (Bermuda) * | 81,360 | 1,658,117 | ||||||
Microsoft Corp | 34,155 | 999,717 | ||||||
Motorola Inc * | 47,050 | 330,291 | ||||||
Oracle Corp | 98,240 | 2,523,786 | ||||||
QUALCOMM Inc | 30,475 | 1,279,645 | ||||||
Research In Motion Ltd (Canada) * | 8,740 | 646,323 | ||||||
Taiwan Semiconductor Manufacturing Co Ltd (Taiwan) + | 376,453 | 729,469 | ||||||
Texas Instruments Inc | 15,569 | 380,973 | ||||||
Yahoo! Inc * | 79,370 | 1,311,986 | ||||||
26,261,532 | ||||||||
Materials - 5.0% | ||||||||
Agnico-Eagle Mines Ltd (Canada) | 5,370 | 298,948 | ||||||
Newmont Mining Corp | 10,155 | 517,194 | ||||||
Nucor Corp | 16,920 | 767,830 | ||||||
Potash Corp of Saskatchewan Inc (Canada) | 8,155 | 973,299 | ||||||
Praxair Inc | 12,915 | 1,071,945 | ||||||
Weyerhaeuser Co | 17,205 | 778,870 | ||||||
4,408,086 | ||||||||
Telecommunication Services - 3.6% | ||||||||
Crown Castle International Corp * | 84,765 | 3,240,566 | ||||||
Total Common Stocks (Cost $64,435,380) | 82,633,456 | |||||||
Principal | ||||||||
Amount | ||||||||
SHORT-TERM INVESTMENTS - 5.5% | ||||||||
U.S. Government Agency Issue - 5.5% | ||||||||
Federal Home Loan Bank | ||||||||
0.001% due 04/01/10 | $ | 4,900,000 | 4,900,000 | |||||
See Notes to Financial Statements | C-19 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL GROWTH LT FUND
Schedule of Investments (Continued)
March 31, 2010
PL GROWTH LT FUND
Schedule of Investments (Continued)
March 31, 2010
Shares | Value | |||||||
Money Market Fund - 0.0% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 40,645 | $ | 40,645 | |||||
Total Short-Term Investments (Cost $4,940,645) | 4,940,645 | |||||||
TOTAL INVESTMENTS - 99.7% (Cost $70,709,149) | 88,973,647 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.3% | 245,810 | |||||||
NET ASSETS - 100.0% | $ | 89,219,457 | ||||||
Notes to Schedule of Investments
(a) | As of March 31, 2010, the Fund was diversified as a percentage of net assets as follows: |
Information Technology | 29.4 | % | ||
Health Care | 12.1 | % | ||
Consumer Staples | 12.0 | % | ||
Industrials | 10.5 | % | ||
Energy | 8.3 | % | ||
Financials | 7.7 | % | ||
Consumer Discretionary | 5.6 | % | ||
Short-Term Investments | 5.5 | % | ||
Materials | 5.0 | % | ||
Telecommunication Services | 3.6 | % | ||
99.7 | % | |||
Other Assets & Liabilities, Net | 0.3 | % | ||
100.0 | % | |||
(b) | Short-term securities reflect either the stated coupon rate or the annualized effective yield on the date of purchase for discounted securities. | |
(c) | Securities with a total aggregate value of $9,551,232 or 10.7% of the net assets were valued under the fair value procedures established by the Funds’ Board of Trustees, including considerations to determine fair values for certain foreign equity securities, if applicable. | |
(d) | Forward foreign currency contracts outstanding as of March 31, 2010 were as follows: |
Principal | Net | |||||||||||||
Contracts | Amount | Unrealized | ||||||||||||
to Buy or | Covered by | Appreciation | ||||||||||||
to Sell | Currency | Contracts | Expiration | (Depreciation) | ||||||||||
Sell | AUD | 303,000 | 04/10 | $ | (8,551 | ) | ||||||||
Sell | AUD | 60,000 | 05/10 | (409 | ) | |||||||||
Buy | CHF | 80,000 | 05/10 | 909 | ||||||||||
Sell | CHF | 515,000 | 05/10 | (2,621 | ) | |||||||||
Sell | EUR | 1,450,000 | 04/10 | 41,083 | ||||||||||
Sell | EUR | 635,000 | 05/10 | 12,232 | ||||||||||
Sell | EUR | 300,000 | 05/10 | (4,394 | ) | |||||||||
Sell | GBP | 1,405,000 | 04/10 | 87,319 | ||||||||||
Sell | GBP | 268,000 | 05/10 | (5,003 | ) | |||||||||
$ | 120,565 | |||||||||||||
(e) | Transactions in written options for the year ended March 31, 2010 were as follows: |
Number of | ||||||||
Contracts | Premium | |||||||
Outstanding, March 31, 2009 | — | $ | — | |||||
Call Options Written | 54 | 2,289 | ||||||
Put Options Written | 19 | 8,578 | ||||||
Call Options Expired | (54 | ) | (2,289 | ) | ||||
Put Options Expired | (19 | ) | (8,578 | ) | ||||
Outstanding, March 31, 2010 | — | $ | — | |||||
(f) | Fair Value Measurements | |
The following is a summary of the Fund’s holdings as categorized under the three-tier hierarchy of inputs used in valuing the Fund’s assets and liabilities (See Note 10 in Notes to Financial Statements) as of March 31, 2010: |
Level 2 | Level 3 | |||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||
March 31, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||
Assets | ||||||||||||||||||
Preferred Stocks (1) | $ | 1,399,546 | $ | 1,399,546 | $ | — | $ | — | ||||||||||
Common Stocks | ||||||||||||||||||
Consumer Discretionary | 4,943,720 | 4,240,794 | 702,926 | — | ||||||||||||||
Consumer Staples | 10,720,978 | 3,750,447 | 6,970,531 | — | ||||||||||||||
Energy | 5,977,826 | 5,977,826 | — | — | ||||||||||||||
Financials | 6,895,821 | 6,543,489 | 352,332 | — | ||||||||||||||
Health Care | 10,827,576 | 10,031,602 | 795,974 | — | ||||||||||||||
Industrials | 9,357,351 | 9,357,351 | — | — | ||||||||||||||
Information Technology | 26,261,532 | 25,532,063 | 729,469 | — | ||||||||||||||
Materials | 4,408,086 | 4,408,086 | — | — | ||||||||||||||
Telecommunication Services | 3,240,566 | 3,240,566 | — | — | ||||||||||||||
82,633,456 | 73,082,224 | 9,551,232 | — | |||||||||||||||
Short-Term Investments | 4,940,645 | 40,645 | 4,900,000 | — | ||||||||||||||
Investments in Other Financial Instruments (2) | 141,543 | — | 141,543 | — | ||||||||||||||
89,115,190 | 74,522,415 | 14,592,775 | — | |||||||||||||||
Liabilities | ||||||||||||||||||
Investments in Other Financial Instruments (2) | (20,978 | ) | — | (20,978 | ) | — | ||||||||||||
Total | $ | 89,094,212 | $ | 74,522,415 | $ | 14,571,797 | $ | — | ||||||||||
(1) | For equity securities categorized in a single level, refer to the schedule of investments for further industry breakout. | |
(2) | Investments in other financial instruments may include open futures contracts, swap contracts, options, and forward foreign currency contracts. |
See Notes to Financial Statements | C-20 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL MID-CAP EQUITY FUND
Schedule of Investments
March 31, 2010
PL MID-CAP EQUITY FUND
Schedule of Investments
March 31, 2010
Shares | Value | |||||||
CONVERTIBLE PREFERRED STOCKS - 0.6% | ||||||||
Industrials - 0.6% | ||||||||
Better Place LLC ‘B’ 8.000% * ∆ | 191,233 | $ | 573,700 | |||||
Total Convertible Preferred Stocks (Cost $573,700) | 573,700 | |||||||
COMMON STOCKS - 97.7% | ||||||||
Consumer Discretionary - 19.8% | ||||||||
American Eagle Outfitters Inc | 67,800 | 1,255,656 | ||||||
Apollo Group Inc ‘A’ * | 8,350 | 511,771 | ||||||
AutoZone Inc * | 8,750 | 1,514,537 | ||||||
Burger King Holdings Inc | 104,350 | 2,218,481 | ||||||
Cablevision Systems Corp ‘A’ | 30,200 | 729,028 | ||||||
Family Dollar Stores Inc | 74,800 | 2,738,428 | ||||||
Genuine Parts Co | 45,400 | 1,917,696 | ||||||
J.C. Penney Co Inc | 61,400 | 1,975,238 | ||||||
Mattel Inc | 132,800 | 3,019,872 | ||||||
Newell Rubbermaid Inc | 49,200 | 747,840 | ||||||
Stanley Black & Decker Inc | 29,500 | 1,693,595 | ||||||
Viacom Inc ‘B’ * | 51,400 | 1,767,132 | ||||||
20,089,274 | ||||||||
Consumer Staples - 7.1% | ||||||||
Avon Products Inc | 28,800 | 975,456 | ||||||
Campbell Soup Co | 23,800 | 841,330 | ||||||
McCormick & Co Inc | 48,800 | 1,871,968 | ||||||
Molson Coors Brewing Co ‘B’ | 39,500 | 1,661,370 | ||||||
Ralcorp Holdings Inc * | 27,050 | 1,833,449 | ||||||
7,183,573 | ||||||||
Energy - 7.2% | ||||||||
Arch Coal Inc | 24,600 | 562,110 | ||||||
Holly Corp | 62,700 | 1,749,957 | ||||||
Massey Energy Co | 21,830 | 1,141,491 | ||||||
The Williams Cos Inc | 77,170 | 1,782,627 | ||||||
Tidewater Inc | 30,850 | 1,458,280 | ||||||
Valero Energy Corp | 33,600 | 661,920 | ||||||
7,356,385 | ||||||||
Financials - 16.8% | ||||||||
Ameriprise Financial Inc | 63,060 | 2,860,402 | ||||||
City National Corp | 40,850 | 2,204,674 | ||||||
Fifth Third Bancorp | 100,700 | 1,368,513 | ||||||
KeyCorp | 93,500 | 724,625 | ||||||
Northern Trust Corp | 27,900 | 1,541,754 | ||||||
NYSE Euronext | 24,900 | 737,289 | ||||||
PartnerRe Ltd (Bermuda) | 12,850 | 1,024,402 | ||||||
Public Storage REIT | 14,350 | 1,320,057 | ||||||
RenaissanceRe Holdings Ltd (Bermuda) | 27,040 | 1,534,790 | ||||||
Tanger Factory Outlet Centers Inc REIT | 14,850 | 640,926 | ||||||
TD Ameritrade Holding Corp * | 27,950 | 532,727 | ||||||
The St. Joe Co * | 43,150 | 1,395,903 | ||||||
UDR Inc REIT | 69,450 | 1,225,098 | ||||||
17,111,160 | ||||||||
Health Care - 10.4% | ||||||||
CareFusion Corp * | 57,450 | 1,518,403 | ||||||
Hospira Inc * | 24,700 | 1,399,255 | ||||||
Life Technologies Corp * | 19,237 | 1,005,518 | ||||||
Omnicare Inc | 29,800 | 843,042 | ||||||
Talecris Biotherapeutics Holdings Corp * | 88,400 | 1,760,928 | ||||||
Teleflex Inc | 28,400 | 1,819,588 | ||||||
Warner Chilcott PLC ‘A’ (Ireland) * | 52,200 | 1,333,710 | ||||||
Zimmer Holdings Inc * | 15,600 | 923,520 | ||||||
10,603,964 | ||||||||
Industrials - 9.1% | ||||||||
Corrections Corp of America * | 72,450 | 1,438,857 | ||||||
Dover Corp | 58,690 | 2,743,757 | ||||||
Foster Wheeler AG (Switzerland) * | 28,850 | 782,989 | ||||||
Parker-Hannifin Corp | 29,750 | 1,926,015 | ||||||
Republic Services Inc | 54,000 | 1,567,080 | ||||||
Rockwell Collins Inc | 11,700 | 732,303 | ||||||
9,191,001 | ||||||||
Information Technology - 14.0% | ||||||||
Analog Devices Inc | 66,150 | 1,906,443 | ||||||
BMC Software Inc * | 33,700 | 1,280,600 | ||||||
Fidelity National Information Services Inc | 60,700 | 1,422,808 | ||||||
Ingram Micro Inc ‘A’ * | 121,140 | 2,126,007 | ||||||
Intuit Inc * | 47,150 | 1,619,131 | ||||||
Lexmark International Inc ‘A’ * | 37,800 | 1,363,824 | ||||||
NetApp Inc * | 23,200 | 755,392 | ||||||
NeuStar Inc ‘A’ * | 41,500 | 1,045,800 | ||||||
Symantec Corp * | 108,100 | 1,829,052 | ||||||
VeriSign Inc * | 35,150 | 914,252 | ||||||
14,263,309 | ||||||||
Materials - 8.8% | ||||||||
Air Products & Chemicals Inc | 11,000 | 813,450 | ||||||
Ball Corp | 65,610 | 3,502,262 | ||||||
Cliffs Natural Resources Inc | 10,350 | 734,332 | ||||||
Compass Minerals International Inc | 21,300 | 1,708,899 | ||||||
Nucor Corp | 26,850 | 1,218,453 | ||||||
Packaging Corp of America | 37,150 | 914,262 | ||||||
8,891,658 | ||||||||
Utilities - 4.5% | ||||||||
Allegheny Energy Inc | 39,850 | 916,550 | ||||||
American Electric Power Co Inc | 63,300 | 2,163,594 | ||||||
Energen Corp | 32,550 | 1,514,552 | ||||||
4,594,696 | ||||||||
Total Common Stocks (Cost $82,316,907) | 99,285,020 | |||||||
SHORT-TERM INVESTMENT - 2.2% | ||||||||
Money Market Fund - 2.2% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 2,297,035 | 2,297,035 | ||||||
Total Short-Term Investment (Cost $2,297,035) | 2,297,035 | |||||||
TOTAL INVESTMENTS - 100.5% (Cost $85,187,642) | 102,155,755 | |||||||
OTHER ASSETS & LIABILITIES, NET - (0.5%) | (505,602 | ) | ||||||
NET ASSETS - 100.0% | $ | 101,650,153 | ||||||
See Notes to Financial Statements | C-21 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL MID-CAP EQUITY FUND
Schedule of Investments (Continued)
March 31, 2010
PL MID-CAP EQUITY FUND
Schedule of Investments (Continued)
March 31, 2010
Notes to Schedule of Investments
(a) | As of March 31, 2010, the Fund was diversified as a percentage of net assets as follows: |
Consumer Discretionary | 19.8 | % | ||
Financials | 16.8 | % | ||
Information Technology | 14.0 | % | ||
Health Care | 10.4 | % | ||
Industrials | 9.7 | % | ||
Materials | 8.8 | % | ||
Energy | 7.2 | % | ||
Consumer Staples | 7.1 | % | ||
Utilities | 4.5 | % | ||
Short-Term Investment | 2.2 | % | ||
100.5 | % | |||
Other Assets & Liabilities, Net | (0.5 | %) | ||
100.0 | % | |||
(b) | 0.6% of the Fund’s net assets were reported illiquid by the portfolio manager under the Funds’ policy. | |
(c) | Fair Value Measurements | |
The following is a summary of the Fund’s holdings as categorized under the three-tier hierarchy of inputs used in valuing the Fund’s assets and liabilities (See Note 10 in Notes to Financial Statements) as of March 31, 2010: |
Level 2 | Level 3 | |||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||
March 31, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||
Assets | ||||||||||||||||||
Convertible Preferred Stocks (1) | $ | 573,700 | $ | — | $ | — | $ | 573,700 | ||||||||||
Common Stocks (1) | 99,285,020 | 99,285,020 | — | — | ||||||||||||||
Short-Term Investment | 2,297,035 | 2,297,035 | — | — | ||||||||||||||
Total | $ | 102,155,755 | $ | 101,582,055 | $ | — | $ | 573,700 | ||||||||||
The following is a reconciliation of investments for significant unobservable inputs (Level 3) used in valuing the Fund’s assets and liabilities (See Note 10 in Notes to Financial Statements) for the year ended March 31, 2010:
Change in Net | ||||||||||||||||||||||||||||
Unrealized | ||||||||||||||||||||||||||||
Appreciation | ||||||||||||||||||||||||||||
Total Change | (Depreciation) | |||||||||||||||||||||||||||
in Net | Transfers | on Level 3 | ||||||||||||||||||||||||||
Value, | Net | Total Net | Unrealized | In and/ | Holdings Held at | |||||||||||||||||||||||
Beginning | Purchases | Realized Gains | Appreciation | or Out of | Value, | the End of Year, | ||||||||||||||||||||||
of Year | (Sales) | (Losses) | (Depreciation) | Level 3 | End of Year | if Applicable | ||||||||||||||||||||||
Convertible Preferred Stocks (1) | $ | — | $ | 573,700 | $ | — | $ | — | $ | — | $ | 573,700 | $ | — | ||||||||||||||
(1) | For equity securities categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | C-22 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL INTERNATIONAL LARGE-CAP FUND
Schedule of Investments
March 31, 2010
PL INTERNATIONAL LARGE-CAP FUND
Schedule of Investments
March 31, 2010
Shares | Value | |||||||
COMMON STOCKS - 96.5% | ||||||||
Austria - 0.6% | ||||||||
Erste Group Bank Group AG + | 15,057 | $ | 630,800 | |||||
Bermuda - 1.4% | ||||||||
Esprit Holdings Ltd + | 73,100 | 576,111 | ||||||
Li & Fung Ltd + | 193,200 | 950,149 | ||||||
1,526,260 | ||||||||
Brazil - 0.4% | ||||||||
Banco Santander Brasil SA ADR | 30,150 | 374,765 | ||||||
Canada - 2.7% | ||||||||
Canadian National Railway Co | 48,320 | 2,927,709 | ||||||
Czech Republic - 0.6% | ||||||||
Komercni Banka AS + | 3,273 | 665,835 | ||||||
France - 16.9% | ||||||||
Air Liquide SA + | 16,777 | 2,015,325 | ||||||
AXA SA + | 65,830 | 1,460,437 | ||||||
Danone SA + | 26,039 | 1,568,250 | ||||||
GDF Suez + | 50,545 | 1,953,919 | ||||||
Legrand SA + | 30,990 | 978,629 | ||||||
LVMH Moet Hennessy Louis Vuitton SA + | 30,010 | 3,505,817 | ||||||
Pernod-Ricard SA + | 19,728 | 1,673,995 | ||||||
Schneider Electric SA + | 26,086 | 3,047,633 | ||||||
Total SA + | 27,100 | 1,572,837 | ||||||
Vivendi + | 17,635 | 471,572 | ||||||
18,248,414 | ||||||||
Germany - 10.4% | ||||||||
Bayer AG + | 30,999 | 2,094,608 | ||||||
Beiersdorf AG + | 22,300 | 1,333,174 | ||||||
Deutsche Boerse AG + | 19,780 | 1,463,489 | ||||||
E.ON AG + | 17,888 | 661,334 | ||||||
Linde AG + | 31,730 | 3,784,726 | ||||||
Merck KGaA + | 12,640 | 1,024,790 | ||||||
SAP AG + | 17,860 | 864,676 | ||||||
11,226,797 | ||||||||
Hong Kong - 0.7% | ||||||||
CNOOC Ltd + | 427,000 | 704,977 | ||||||
India - 2.3% | ||||||||
ICICI Bank Ltd ADR | 19,230 | 821,121 | ||||||
Infosys Technologies Ltd ADR | 28,860 | 1,698,411 | ||||||
2,519,532 | ||||||||
Italy - 0.4% | ||||||||
Intesa Sanpaolo SPA * + | 125,317 | 466,691 | ||||||
Japan - 12.4% | ||||||||
Aeon Credit Service Co Ltd + | 37,100 | 441,005 | ||||||
Canon Inc + | 40,850 | 1,889,527 | ||||||
FANUC Ltd + | 12,800 | 1,360,453 | ||||||
Hirose Electric Co Ltd + | 5,400 | 623,639 | ||||||
HOYA Corp + | 79,500 | 2,188,953 | ||||||
INPEX Corp + | 255 | 1,872,729 | ||||||
Kao Corp + | 13,600 | 344,918 | ||||||
Konica Minolta Holdings Inc + | 55,500 | 649,148 | ||||||
Lawson Inc + | 27,800 | 1,187,217 | ||||||
Nomura Holdings Inc + | 81,600 | 598,752 | ||||||
Shin-Etsu Chemical Co Ltd + | 28,200 | 1,641,141 | ||||||
Tokyo Electron Ltd + | 8,400 | 558,239 | ||||||
13,355,721 | ||||||||
Mexico - 0.3% | ||||||||
America Movil SAB de CV ‘L’ ADR | 6,620 | 333,251 | ||||||
Netherlands - 8.3% | ||||||||
Akzo Nobel NV + | 14,720 | 838,445 | ||||||
Heineken NV + | 63,410 | 3,256,632 | ||||||
ING Groep NV CVA * + | 140,380 | 1,390,829 | ||||||
TNT NV + | 61,683 | 1,766,441 | ||||||
Wolters Kluwer NV + | 79,020 | 1,711,999 | ||||||
8,964,346 | ||||||||
Singapore - 1.1% | ||||||||
Singapore Telecommunications Ltd + | 510,380 | 1,154,504 | ||||||
South Africa - 0.7% | ||||||||
MTN Group Ltd * + | 49,770 | 764,007 | ||||||
South Korea - 1.5% | ||||||||
Samsung Electronics Co Ltd + | 2,202 | 1,592,033 | ||||||
Sweden - 0.7% | ||||||||
Svenska Cellulosa AB ‘B’ + | 50,200 | 707,804 | ||||||
Switzerland - 15.0% | ||||||||
Actelion Ltd * + | 8,954 | 407,077 | ||||||
Cie Financiere Richemont SA ‘A’ + | 39,116 | 1,516,733 | ||||||
Givaudan SA + | 2,140 | 1,876,651 | ||||||
Julius Baer Group Ltd + | 50,260 | 1,819,158 | ||||||
Nestle SA + | 91,012 | 4,663,637 | ||||||
Roche Holding AG + | 27,280 | 4,430,560 | ||||||
Sonova Holding AG + | 4,283 | 531,608 | ||||||
Swiss Reinsurance Co Ltd * + | 9,555 | 468,820 | ||||||
UBS AG (XVTX) * + | 32,692 | 531,830 | ||||||
16,246,074 | ||||||||
Taiwan - 1.1% | ||||||||
Taiwan Semiconductor Manufacturing Co Ltd ADR | 117,340 | 1,230,897 | ||||||
United Kingdom - 17.0% | ||||||||
Burberry Group PLC + | 91,330 | 989,838 | ||||||
Diageo PLC + | 140,330 | 2,359,345 | ||||||
Hays PLC + | 298,490 | 491,663 | ||||||
HSBC Holdings PLC (LI) + | 196,329 | 1,989,586 | ||||||
Ladbrokes PLC + | 141,687 | 341,962 | ||||||
Reckitt Benckiser Group PLC + | 69,264 | 3,805,632 | ||||||
Royal Dutch Shell PLC ‘A’ (LI) + | 59,600 | 1,727,971 | ||||||
Smiths Group PLC + | 67,430 | 1,163,228 | ||||||
Standard Chartered PLC + | 76,217 | 2,077,467 | ||||||
Tesco PLC + | 116,507 | 770,293 |
See Notes to Financial Statements | C-23 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL INTERNATIONAL LARGE-CAP FUND
Schedule of Investments (Continued)
March 31, 2010
PL INTERNATIONAL LARGE-CAP FUND
Schedule of Investments (Continued)
March 31, 2010
Shares | Value | |||||||
William Hill PLC + | 174,820 | $ | 561,416 | |||||
WPP PLC + | 204,312 | 2,114,178 | ||||||
18,392,579 | ||||||||
United States - 2.0% | ||||||||
Synthes Inc + | 17,520 | 2,188,858 | ||||||
Total Common Stocks (Cost $90,860,195) | 104,221,854 | |||||||
Principal | ||||||||
Amount | ||||||||
SHORT-TERM INVESTMENTS - 2.9% | ||||||||
Commercial Paper - 2.9% | ||||||||
ConocoPhillips | ||||||||
0.100% due 04/01/10 | $ | 923,000 | 923,000 | |||||
General Electric Capital Corp | ||||||||
0.030% due 04/01/10 | 2,144,000 | 2,144,000 | ||||||
3,067,000 | ||||||||
Shares | ||||||||
Money Market Fund - 0.0% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 33,029 | 33,029 | ||||||
Total Short-Term Investments (Cost $3,100,029) | 3,100,029 | |||||||
TOTAL INVESTMENTS - 99.4% (Cost $93,960,224) | 107,321,883 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.6% | 680,319 | |||||||
NET ASSETS - 100.0% | $ | 108,002,202 | ||||||
Notes to Schedule of Investments
(a) | As of March 31, 2010, the Fund was diversified as a percentage of net assets as follows: |
Consumer Staples | 19.4 | % | ||
Financials | 14.1 | % | ||
Consumer Discretionary | 11.8 | % | ||
Industrials | 10.9 | % | ||
Information Technology | 10.4 | % | ||
Materials | 10.1 | % | ||
Health Care | 9.9 | % | ||
Energy | 5.4 | % | ||
Short-Term Investments | 2.9 | % | ||
Utilities | 2.4 | % | ||
Telecommunication Services | 2.1 | % | ||
99.4 | % | |||
Other Assets & Liabilities, Net | 0.6 | % | ||
100.0 | % | |||
(b) | As of March 31, 2010, the Fund was diversified by geographical region as a percentage of net assets as follows: |
United Kingdom | 17.0 | % | ||
France | 16.9 | % | ||
Switzerland | 15.0 | % | ||
Japan | 12.4 | % | ||
Germany | 10.4 | % | ||
Netherlands | 8.3 | % | ||
United States | 4.9 | % | ||
Canada | 2.7 | % | ||
India | 2.3 | % | ||
South Korea | 1.5 | % | ||
Bermuda | 1.4 | % | ||
Singapore | 1.1 | % | ||
Taiwan | 1.1 | % | ||
Hong Kong | 0.7 | % | ||
South Africa | 0.7 | % | ||
Sweden | 0.7 | % | ||
Austria | 0.6 | % | ||
Czech Republic | 0.6 | % | ||
Brazil | 0.4 | % | ||
Italy | 0.4 | % | ||
Mexico | 0.3 | % | ||
99.4 | % | |||
Other Assets & Liabilities, Net | 0.6 | % | ||
100.0 | % | |||
(c) | Short-Term securities reflect either the stated coupon rate or the annualized effective yield on the date of purchase for discounted securities. |
(d) | Securities with a total aggregate value of $96,835,700 or 89.7% of the net assets were valued under the fair value procedures established by the Funds’ Board of Trustees, including considerations to determine fair values for certain foreign equity securities, if applicable. |
See Notes to Financial Statements | C-24 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL INTERNATIONAL LARGE-CAP FUND
Schedule of Investments (Continued)
March 31, 2010
PL INTERNATIONAL LARGE-CAP FUND
Schedule of Investments (Continued)
March 31, 2010
(e) | Fair Value Measurements |
The following is a summary of the Fund’s holdings as categorized under the three-tier hierarchy of inputs used in valuing the Fund’s assets and liabilities (See Note 10 in Notes to Financial Statements) as of March 31, 2010: |
Level 2 | Level 3 | |||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||
March 31, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||
Assets | ||||||||||||||||||
Common Stocks | ||||||||||||||||||
Austria | $ | 630,800 | $ | — | $ | 630,800 | $ | — | ||||||||||
Bermuda | 1,526,260 | — | 1,526,260 | — | ||||||||||||||
Brazil | 374,765 | 374,765 | — | — | ||||||||||||||
Canada | 2,927,709 | 2,927,709 | — | — | ||||||||||||||
Czech Republic | 665,835 | — | 665,835 | — | ||||||||||||||
France | 18,248,414 | — | 18,248,414 | — | ||||||||||||||
Germany | 11,226,797 | — | 11,226,797 | — | ||||||||||||||
Hong Kong | 704,977 | — | 704,977 | — | ||||||||||||||
India | 2,519,532 | 2,519,532 | — | — | ||||||||||||||
Italy | 466,691 | — | 466,691 | — | ||||||||||||||
Japan | 13,355,721 | — | 13,355,721 | — | ||||||||||||||
Mexico | 333,251 | 333,251 | — | — | ||||||||||||||
Netherlands | 8,964,346 | — | 8,964,346 | — | ||||||||||||||
Singapore | 1,154,504 | — | 1,154,504 | — | ||||||||||||||
South Africa | 764,007 | — | 764,007 | — | ||||||||||||||
South Korea | 1,592,033 | — | 1,592,033 | — | ||||||||||||||
Sweden | 707,804 | — | 707,804 | — | ||||||||||||||
Switzerland | 16,246,074 | — | 16,246,074 | — | ||||||||||||||
Taiwan | 1,230,897 | 1,230,897 | — | — | ||||||||||||||
United Kingdom | 18,392,579 | — | 18,392,579 | — | ||||||||||||||
United States | 2,188,858 | — | 2,188,858 | — | ||||||||||||||
104,221,854 | 7,386,154 | 96,835,700 | — | |||||||||||||||
Short-Term Investments | 3,100,029 | 33,029 | 3,067,000 | — | ||||||||||||||
Total | $ | 107,321,883 | $ | 7,419,183 | $ | 99,902,700 | $ | — | ||||||||||
See Notes to Financial Statements | C-25 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL SMALL-CAP VALUE FUND
Schedule of Investments
March 31, 2010
PL SMALL-CAP VALUE FUND
Schedule of Investments
March 31, 2010
Shares | Value | |||||||
COMMON STOCKS - 96.0% | ||||||||
Consumer Discretionary - 7.5% | ||||||||
Aaron’s Inc | 13,400 | $ | 446,756 | |||||
Dover Downs Gaming & Entertainment Inc | 4,300 | 17,028 | ||||||
Hillenbrand Inc | 7,800 | 171,522 | ||||||
International Speedway Corp ‘A’ | 9,400 | 242,238 | ||||||
PetMed Express Inc | 6,200 | 137,454 | ||||||
Phillips-Van Heusen Corp | 9,500 | 544,920 | ||||||
RadioShack Corp | 12,000 | 271,560 | ||||||
Sturm Ruger & Co Inc | 7,400 | 88,726 | ||||||
The Buckle Inc | 12,900 | 474,204 | ||||||
UniFirst Corp | 1,700 | 87,550 | ||||||
Wolverine World Wide Inc | 13,600 | 396,576 | ||||||
2,878,534 | ||||||||
Consumer Staples - 8.9% | ||||||||
Cal-Maine Foods Inc | 7,000 | 237,230 | ||||||
Casey’s General Stores Inc | 12,100 | 379,940 | ||||||
Corn Products International Inc | 13,400 | 464,444 | ||||||
Del Monte Foods Co | 36,900 | 538,740 | ||||||
Embotelladora Andina SA ‘B’ ADR (Chile) | 9,500 | 193,990 | ||||||
Ruddick Corp | 12,500 | 395,500 | ||||||
The J.M. Smucker Co | 5,200 | 313,352 | ||||||
Universal Corp | 7,800 | 410,982 | ||||||
Vector Group Ltd | 8,450 | 130,384 | ||||||
WD-40 Co | 6,200 | 203,546 | ||||||
Weis Markets Inc | 3,600 | 130,896 | ||||||
3,399,004 | ||||||||
Energy - 12.6% | ||||||||
Alliance Resource Partners LP | 1,900 | 79,629 | ||||||
Berry Petroleum Co ‘A’ | 11,400 | 321,024 | ||||||
Buckeye Partners LP | 4,500 | 270,315 | ||||||
Cimarex Energy Co | 9,000 | 534,420 | ||||||
El Paso Pipeline Partners LP | 6,100 | 170,129 | ||||||
Frontier Oil Corp | 16,100 | 217,350 | ||||||
Frontline Ltd (Bermuda) | 10,500 | 321,615 | ||||||
Holly Corp | 13,300 | 371,203 | ||||||
Linn Energy LLC | 13,500 | 347,220 | ||||||
Magellan Midstream Partners LP | 6,600 | 313,698 | ||||||
NuStar Energy LP | 4,600 | 278,070 | ||||||
Southern Union Co | 15,800 | 400,846 | ||||||
Sunoco Logistics Partners LP | 2,000 | 137,000 | ||||||
TC Pipelines LP | 2,300 | 87,446 | ||||||
Tidewater Inc | 8,000 | 378,160 | ||||||
TransMontaigne Partners LP | 100 | 2,724 | ||||||
Tsakos Energy Navigation Ltd (Bermuda) | 6,500 | 95,810 | ||||||
Williams Partners LP | 2,400 | 96,552 | ||||||
World Fuel Services Corp | 15,200 | 404,928 | ||||||
4,828,139 | ||||||||
Financials - 15.4% | ||||||||
Advance America Cash Advance Centers Inc | 23,700 | 137,934 | ||||||
American Equity Investment Life Holding Co | 10,600 | 112,890 | ||||||
American Financial Group Inc | 16,100 | 458,045 | ||||||
American Physicians Capital Inc | 3,300 | 105,435 | ||||||
Bank of Hawaii Corp | 9,000 | 404,550 | ||||||
Cash America International Inc | 8,500 | 335,580 | ||||||
Chimera Investment Corp REIT | 96,200 | 374,218 | ||||||
CreXus Investment Corp REIT | 5,000 | 66,850 | ||||||
Cullen/Frost Bankers Inc | 7,600 | 424,080 | ||||||
Delphi Financial Group Inc ‘A’ | 13,400 | 337,144 | ||||||
Equity One Inc REIT | 13,200 | 249,348 | ||||||
Federated Investors Inc ‘B’ | 14,900 | 393,062 | ||||||
Franklin Street Properties Corp REIT | 18,400 | 265,512 | ||||||
Healthcare Realty Trust Inc REIT | 14,000 | 326,060 | ||||||
HRPT Properties Trust REIT | 35,800 | 278,524 | ||||||
Infinity Property & Casualty Corp | 4,900 | 222,656 | ||||||
Nationwide Health Properties Inc REIT | 10,800 | 379,620 | ||||||
PS Business Parks Inc REIT | 4,400 | 234,960 | ||||||
Raymond James Financial Inc | 10,600 | 283,444 | ||||||
RLI Corp | 4,800 | 273,696 | ||||||
Sovran Self Storage Inc REIT | 5,900 | 205,674 | ||||||
5,869,282 | ||||||||
Health Care - 8.0% | ||||||||
Hill-Rom Holdings Inc | 7,800 | 212,238 | ||||||
Invacare Corp | 8,400 | 222,936 | ||||||
Owens & Minor Inc | 9,400 | 436,066 | ||||||
PerkinElmer Inc | 19,650 | 469,635 | ||||||
STERIS Corp | 12,600 | 424,116 | ||||||
Teleflex Inc | 7,300 | 467,711 | ||||||
The Cooper Cos Inc | 12,200 | 474,336 | ||||||
West Pharmaceutical Services Inc | 8,200 | 343,990 | ||||||
3,051,028 | ||||||||
Industrials - 13.6% | ||||||||
Acuity Brands Inc | 10,300 | 434,763 | ||||||
Applied Industrial Technologies Inc | 10,300 | 255,955 | ||||||
Barnes Group Inc | 13,400 | 260,630 | ||||||
Belden Inc | 11,000 | 302,060 | ||||||
Bucyrus International Inc | 8,200 | 541,118 | ||||||
Crane Co | 13,000 | 461,500 | ||||||
Cubic Corp | 2,393 | 86,148 | ||||||
Curtiss-Wright Corp | 10,200 | 354,960 | ||||||
Elbit Systems Ltd (Israel) | 1,000 | 64,010 | ||||||
Ennis Inc | 14,300 | 232,661 | ||||||
Harsco Corp | 12,000 | 383,280 | ||||||
KBR Inc | 19,500 | 432,120 | ||||||
SkyWest Inc | 12,400 | 177,072 | ||||||
The Brink’s Co | 11,400 | 321,822 | ||||||
Tomkins PLC ADR (United Kingdom) | 3,700 | 52,688 | ||||||
Triumph Group Inc | 4,900 | 343,441 | ||||||
US Ecology Inc | 3,200 | 51,520 | ||||||
Valmont Industries Inc | 5,100 | 422,433 | ||||||
5,178,181 | ||||||||
Information Technology - 2.4% | ||||||||
Diebold Inc | 12,200 | 387,472 | ||||||
Himax Technologies Inc ADR (Cayman) | 13,500 | 42,255 | ||||||
Jabil Circuit Inc | 26,500 | 429,035 | ||||||
MTS Systems Corp | 1,900 | 55,157 | ||||||
913,919 | ||||||||
Materials - 14.0% | ||||||||
AMCOL International Corp | 5,300 | 144,160 | ||||||
Bemis Co Inc | 13,700 | 393,464 | ||||||
Commercial Metals Co | 5,456 | 82,167 | ||||||
Compass Minerals International Inc | 7,000 | 561,610 | ||||||
IAMGOLD Corp (Canada) | 32,200 | 425,684 | ||||||
Innophos Holdings Inc | 7,800 | 217,620 | ||||||
International Flavors & Fragrances Inc | 9,100 | 433,797 | ||||||
Methanex Corp (Canada) | 13,700 | 333,047 | ||||||
Royal Gold Inc | 10,200 | 471,342 | ||||||
RPM International Inc | 19,500 | 416,130 | ||||||
Sensient Technologies Corp | 12,900 | 374,874 | ||||||
Sonoco Products Co | 13,700 | 421,823 | ||||||
Terra Industries Inc | 10,900 | 498,784 | ||||||
The Lubrizol Corp | 6,000 | 550,320 | ||||||
5,324,822 | ||||||||
Telecommunication Services - 0.2% | ||||||||
Partner Communications Co Ltd ADR (Israel) | 3,200 | 72,288 | ||||||
See Notes to Financial Statements | C-26 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL SMALL-CAP VALUE FUND
Schedule of Investments (Continued)
March 31, 2010
PL SMALL-CAP VALUE FUND
Schedule of Investments (Continued)
March 31, 2010
Shares | Value | |||||||
Utilities - 13.4% | ||||||||
AGL Resources Inc | 10,400 | $ | 401,960 | |||||
American Water Works Co Inc | 18,300 | 398,208 | ||||||
AmeriGas Partners LP | 2,300 | 92,345 | ||||||
Atmos Energy Corp | 13,000 | 371,410 | ||||||
Avista Corp | 9,900 | 205,029 | ||||||
Cleco Corp | 14,000 | 371,700 | ||||||
Energen Corp | 9,400 | 437,382 | ||||||
National Fuel Gas Co | 8,700 | 439,785 | ||||||
OGE Energy Corp | 11,300 | 440,022 | ||||||
Southwest Gas Corp | 9,900 | 296,208 | ||||||
Suburban Propane Partners LP | 4,200 | 199,458 | ||||||
UGI Corp | 14,600 | 387,484 | ||||||
Vectren Corp | 13,400 | 331,248 | ||||||
Westar Energy Inc | 17,900 | 399,170 | ||||||
WGL Holdings Inc | 10,300 | 356,895 | ||||||
5,128,304 | ||||||||
Total Common Stocks (Cost $30,626,813) | 36,643,501 | |||||||
SHORT-TERM INVESTMENT - 3.9% | ||||||||
Money Market Fund - 3.9% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 1,481,115 | 1,481,115 | ||||||
Total Short-Term Investment (Cost $1,481,115) | 1,481,115 | |||||||
TOTAL INVESTMENTS - 99.9% (Cost $32,107,928) | 38,124,616 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.1% | 48,552 | |||||||
NET ASSETS - 100.0% | $ | 38,173,168 | ||||||
Notes to Schedule of Investments
(a) | As of March 31, 2010, the Fund was diversified as a percentage of net assets as follows: |
Financials | 15.4 | % | ||
Materials | 14.0 | % | ||
Industrials | 13.6 | % | ||
Utilities | 13.4 | % | ||
Energy | 12.6 | % | ||
Consumer Staples | 8.9 | % | ||
Health Care | 8.0 | % | ||
Consumer Discretionary | 7.5 | % | ||
Short-Term Investment | 3.9 | % | ||
Information Technology | 2.4 | % | ||
Telecommunication Services | 0.2 | % | ||
99.9 | % | |||
Other Assets & Liabilities, Net | 0.1 | % | ||
100.0 | % | |||
(b) | Fair Value Measurements |
The following is a summary of the Fund’s holdings as categorized under the three-tier hierarchy of inputs used in valuing the Fund’s assets and liabilities (See Note 10 in Notes to Financial Statements) as of March 31, 2010: |
Level 2 | Level 3 | |||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||
March 31, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||
Assets | ||||||||||||||||||
Common Stocks (1) | $ | 36,643,501 | $ | 36,643,501 | $ | — | $ | — | ||||||||||
Short-Term Investment | 1,481,115 | 1,481,115 | — | — | ||||||||||||||
Total | $ | 38,124,616 | $ | 38,124,616 | $ | — | $ | — | ||||||||||
(1) | For equity securities categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | C-27 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL MAIN STREET® CORE FUND
Schedule of Investments
March 31, 2010
PL MAIN STREET® CORE FUND
Schedule of Investments
March 31, 2010
Shares | Value | |||||||
COMMON STOCKS - 98.4% | ||||||||
Consumer Discretionary - 13.2% | ||||||||
AutoZone Inc * | 7,090 | $ | 1,227,208 | |||||
Best Buy Co Inc | 58,470 | 2,487,314 | ||||||
Ford Motor Co * | 196,550 | 2,470,633 | ||||||
H&R Block Inc | 37,340 | 664,652 | ||||||
Hyatt Hotels Corp ‘A’ * | 47,670 | 1,857,223 | ||||||
McDonald’s Corp | 60,270 | 4,021,214 | ||||||
The McGraw-Hill Cos Inc | 80,230 | 2,860,199 | ||||||
The Washington Post Co ‘B’ | 2,205 | 979,417 | ||||||
Time Warner Cable Inc | 49,994 | 2,665,180 | ||||||
19,233,040 | ||||||||
Consumer Staples - 10.3% | ||||||||
Colgate-Palmolive Co | 21,230 | 1,810,070 | ||||||
General Mills Inc | 52,110 | 3,688,867 | ||||||
Mead Johnson Nutrition Co | 32,400 | 1,685,772 | ||||||
Philip Morris International Inc | 116,160 | 6,058,906 | ||||||
Unilever NV ‘NY’ (Netherlands) | 32,070 | 967,231 | ||||||
Wal-Mart Stores Inc | 14,370 | 798,972 | ||||||
15,009,818 | ||||||||
Energy - 9.1% | ||||||||
Chevron Corp | 57,640 | 4,370,841 | ||||||
Enterprise Products Partners LP | 45,530 | 1,574,427 | ||||||
Noble Energy Inc | 20,450 | 1,492,850 | ||||||
Occidental Petroleum Corp | 53,830 | 4,550,788 | ||||||
Plains All American Pipeline LP | 21,670 | 1,233,023 | ||||||
13,221,929 | ||||||||
Financials - 15.9% | ||||||||
American Express Co | 70,900 | 2,925,334 | ||||||
CIT Group Inc * | 80,280 | 3,127,709 | ||||||
Citigroup Inc * | 649,900 | 2,632,095 | ||||||
Leucadia National Corp * | 30,660 | 760,675 | ||||||
Lincoln National Corp | 73,540 | 2,257,678 | ||||||
Marshall & Ilsley Corp | 81,220 | 653,821 | ||||||
Regions Financial Corp | 88,680 | 696,138 | ||||||
State Street Corp | 66,630 | 3,007,678 | ||||||
SunTrust Banks Inc | 20,970 | 561,786 | ||||||
The Chubb Corp | 30,990 | 1,606,831 | ||||||
The Goldman Sachs Group Inc | 16,150 | 2,755,674 | ||||||
U.S. Bancorp | 88,890 | 2,300,473 | ||||||
23,285,892 | ||||||||
Health Care - 12.9% | ||||||||
Abbott Laboratories | 56,140 | 2,957,455 | ||||||
Celgene Corp * | 36,670 | 2,272,073 | ||||||
Covidien PLC (Ireland) | 15,000 | 754,200 | ||||||
Medco Health Solutions Inc * | 35,730 | 2,306,729 | ||||||
Medtronic Inc | 47,890 | 2,156,487 | ||||||
Merck & Co Inc | 96,870 | 3,618,095 | ||||||
Teva Pharmaceutical Industries Ltd ADR (Israel) | 33,410 | 2,107,503 | ||||||
WellPoint Inc * | 41,490 | 2,671,126 | ||||||
18,843,668 | ||||||||
Industrials - 12.8% | ||||||||
General Electric Co | 181,580 | 3,304,756 | ||||||
KBR Inc | 63,410 | 1,405,166 | ||||||
Precision Castparts Corp | 21,000 | 2,660,910 | ||||||
Republic Services Inc | 97,590 | 2,832,062 | ||||||
The Boeing Co | 25,870 | 1,878,421 | ||||||
Tyco International Ltd (Switzerland) | 89,675 | 3,430,069 | ||||||
United Parcel Service Inc ‘B’ | 25,280 | 1,628,285 | ||||||
Verisk Analytics Inc ‘A’ * | 57,570 | 1,623,474 | ||||||
18,763,143 | ||||||||
Information Technology - 17.2% | ||||||||
Accenture PLC ‘A’ (Ireland) | 18,700 | 784,465 | ||||||
Adobe Systems Inc * | 36,170 | 1,279,333 | ||||||
Apple Inc * | 21,940 | 5,154,364 | ||||||
Check Point Software Technologies Ltd (Israel) * | 42,060 | 1,474,624 | ||||||
eBay Inc * | 156,810 | 4,226,029 | ||||||
Google Inc ‘A’ * | 4,620 | 2,619,586 | ||||||
Hewitt Associates Inc ‘A’ * | 31,960 | 1,271,369 | ||||||
Microsoft Corp | 112,200 | 3,284,094 | ||||||
QUALCOMM Inc | 83,950 | 3,525,061 | ||||||
The Western Union Co | 84,910 | 1,440,074 | ||||||
25,058,999 | ||||||||
Materials - 2.1% | ||||||||
Monsanto Co | 17,080 | 1,219,854 | ||||||
Praxair Inc | 22,540 | 1,870,820 | ||||||
3,090,674 | ||||||||
Telecommunication Services - 1.7% | ||||||||
America Movil SAB de CV ‘L’ ADR (Mexico) | 48,180 | 2,425,381 | ||||||
Utilities - 3.2% | ||||||||
Public Service Enterprise Group Inc | 35,100 | 1,036,152 | ||||||
The AES Corp * | 334,170 | 3,675,870 | ||||||
4,712,022 | ||||||||
Total Common Stocks (Cost $122,042,940) | 143,644,566 | |||||||
SHORT-TERM INVESTMENT - 2.9% | ||||||||
Money Market Fund - 2.9% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 4,268,973 | 4,268,973 | ||||||
Total Short-Term Investment (Cost $4,268,973) | 4,268,973 | |||||||
TOTAL INVESTMENTS - 101.3% (Cost $126,311,913) | 147,913,539 | |||||||
OTHER ASSETS & LIABILITIES, NET - (1.3%) | (1,885,127 | ) | ||||||
NET ASSETS - 100.0% | $ | 146,028,412 | ||||||
See Notes to Financial Statements | C-28 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL MAIN STREET CORE FUND
Schedule of Investments (Continued)
March 31, 2010
PL MAIN STREET CORE FUND
Schedule of Investments (Continued)
March 31, 2010
Notes to Schedule of Investments
(a) | As of March 31, 2010, the Fund was diversified as a percentage of net assets as follows: |
Information Technology | 17.2 | % | ||
Financials | 15.9 | % | ||
Consumer Discretionary | 13.2 | % | ||
Health Care | 12.9 | % | ||
Industrials | 12.8 | % | ||
Consumer Staples | 10.3 | % | ||
Energy | 9.1 | % | ||
Utilities | 3.2 | % | ||
Short-Term Investment | 2.9 | % | ||
Materials | 2.1 | % | ||
Telecommunication Services | 1.7 | % | ||
101.3 | % | |||
Other Assets & Liabilities, Net | (1.3 | %) | ||
100.0 | % | |||
(b) | Fair Value Measurements |
The following is a summary of the Fund’s holdings as categorized under the three-tier hierarchy of inputs used in valuing the Fund’s assets and liabilities (See Note 10 in Notes to Financial Statements) as of March 31, 2010: |
Level 2 | Level 3 | |||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||
March 31, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||
Assets | ||||||||||||||||||
Common Stocks (1) | $ | 143,644,566 | $ | 143,644,566 | $ | — | $ | — | ||||||||||
Short-Term Investment | 4,268,973 | 4,268,973 | — | — | ||||||||||||||
Total | $ | 147,913,539 | $ | 147,913,539 | $ | — | $ | — | ||||||||||
(1) | For equity securities categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | C-29 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL EMERGING MARKETS FUND
Schedule of Investments
March 31, 2010
PL EMERGING MARKETS FUND
Schedule of Investments
March 31, 2010
Shares | Value | |||||||
PREFERRED STOCKS - 7.6% | ||||||||
Brazil - 7.6% | ||||||||
Cia de Bebidas das Americas ADR | 3,700 | $ | 339,142 | |||||
Lojas Americanas SA | 83,940 | 625,414 | ||||||
Net Servicos de Comunicacao SA * | 18,408 | 238,077 | ||||||
Petroleo Brasileiro SA ADR | 38,100 | 1,508,379 | ||||||
Vale SA ADR | 33,100 | 918,856 | ||||||
3,629,868 | ||||||||
Total Preferred Stocks (Cost $2,391,730) | 3,629,868 | |||||||
COMMON STOCKS - 88.1% | ||||||||
Bermuda - 0.8% | ||||||||
Credicorp Ltd | 2,900 | 255,722 | ||||||
Dairy Farm International Holdings Ltd | 19,000 | 125,400 | ||||||
381,122 | ||||||||
Brazil - 6.0% | ||||||||
B2W Cia Global do Varejo | 12,000 | 259,117 | ||||||
BM&F BOVESPA SA | 57,216 | 384,153 | ||||||
Cielo SA | 3,000 | 28,493 | ||||||
Cyrela Brazil Realty SA Empreendimentos e Participacoes | 25,000 | 292,828 | ||||||
Diagnosticos da America SA | 19,200 | 167,238 | ||||||
Embraer-Empresa Brasileira de Aeronautica SA ADR | 18,000 | 431,280 | ||||||
Gafisa SA | 13,000 | 88,453 | ||||||
MRV Engenharia e Participacoes SA | 10,000 | 70,290 | ||||||
Multiplan Empreendimentos Imobiliarios SA | 8,000 | 133,967 | ||||||
Natura Cosmeticos SA | 48,200 | 983,054 | ||||||
2,838,873 | ||||||||
Canada - 1.0% | ||||||||
Niko Resources Ltd | 2,400 | 255,986 | ||||||
Pacific Rubiales Energy Corp * | 10,400 | 202,030 | ||||||
458,016 | ||||||||
Cayman - 1.7% | ||||||||
Baidu Inc ADR * | 400 | 238,800 | ||||||
Ctrip.com International Ltd ADR * | 6,000 | 235,200 | ||||||
Tencent Holdings Ltd + | 12,800 | 256,475 | ||||||
Tingyi Holding Corp + | 44,000 | 104,114 | ||||||
834,589 | ||||||||
Chile - 1.5% | ||||||||
Banco Santander Chile SA | 2,042,400 | 134,084 | ||||||
Cencosud SA | 120,900 | 474,615 | ||||||
Parque Arauco SA | 24,500 | 32,682 | ||||||
Sociedad Quimica y Minera de Chile SA ADR | 1,500 | 56,085 | ||||||
697,466 | ||||||||
China - 1.9% | ||||||||
China Shenhua Energy Co Ltd ‘H’ + | 63,500 | 274,066 | ||||||
PetroChina Co Ltd ‘H’ + | 314,000 | 368,110 | ||||||
Shanghai Zhenhua Heavy Industry Co Ltd ‘B’ + | 163,290 | 124,056 | ||||||
Travelsky Technology Ltd ‘H’ + | 120,000 | 100,207 | ||||||
Wumart Stores Inc “H” + | 20,000 | 40,291 | ||||||
906,730 | ||||||||
Colombia - 0.9% | ||||||||
Almacenes Exito SA | 6,966 | 62,973 | ||||||
Almacenes Exito SA GDR ~ | 10,200 | 91,402 | ||||||
BanColombia SA ADR | 6,400 | 292,224 | ||||||
446,599 | ||||||||
Denmark - 1.5% | ||||||||
Carlsberg AS ‘B’ + | 8,600 | 720,984 | ||||||
Egypt - 3.1% | ||||||||
Commercial International Bank + | 49,025 | 579,220 | ||||||
Eastern Tobacco Co SAE + | 4,196 | 95,082 | ||||||
Egyptian Financial Group-Hermes Holding + | 36,187 | 208,927 | ||||||
Orascom Telecom Holding SAE + | 583,156 | 597,517 | ||||||
1,480,746 | ||||||||
France - 0.4% | ||||||||
CFAO SA * | 4,880 | 181,851 | ||||||
Hong Kong - 8.4% | ||||||||
China Mobile Ltd + | 73,000 | 702,000 | ||||||
China Resources Enterprise Ltd + | 123,000 | 456,206 | ||||||
CNOOC Ltd + | 555,000 | 916,306 | ||||||
Hang Lung Group Ltd + | 25,000 | 132,416 | ||||||
Hang Lung Properties Ltd + | 183,000 | 736,333 | ||||||
Hong Kong Exchanges & Clearing Ltd + | 53,000 | 882,549 | ||||||
Television Broadcasts Ltd + | 42,000 | 203,321 | ||||||
4,029,131 | ||||||||
India - 12.6% | ||||||||
ABB Ltd India + | 2,200 | 40,651 | ||||||
Asian Paints Ltd + | 1,200 | 54,476 | ||||||
Colgate Palmolive India Ltd | 2,900 | 43,621 | ||||||
Divi’s Laboratories Ltd + | 14,704 | 222,142 | ||||||
HDFC Bank Ltd ADR | 9,200 | 1,282,388 | ||||||
Hindustan Unilever Ltd + | 61,941 | 330,507 | ||||||
Housing Development Finance Corp + | 11,200 | 677,341 | ||||||
ICICI Bank Ltd ADR | 10,300 | 439,810 | ||||||
Infosys Technologies Ltd + | 31,000 | 1,805,144 | ||||||
Sun Pharmaceutical Industries Ltd | 4,500 | 179,619 | ||||||
Tata Consultancy Services Ltd + | 25,236 | 438,773 | ||||||
United Spirits Ltd + | 100 | 2,941 | ||||||
Zee Entertainment Enterprises Ltd + | 79,000 | 471,716 | ||||||
5,989,129 | ||||||||
Indonesia - 2.6% | ||||||||
P.T. Astra International Tbk + | 77,400 | 355,613 | ||||||
P.T. Bank Central Asia Tbk + | 476,500 | 287,480 | ||||||
P.T. Telekomunikasi Indonesia Tbk + | 485,900 | 433,048 | ||||||
P.T. Unilever Indonesia Tbk + | 124,000 | 165,513 | ||||||
1,241,654 | ||||||||
Kenya - 0.1% | ||||||||
East African Breweries Ltd | 15,205 | 31,857 | ||||||
Luxembourg - 1.6% | ||||||||
Oriflame Cosmetics SA SDR * + | 3,500 | 217,869 | ||||||
Tenaris SA ADR | 13,000 | 558,220 | ||||||
776,089 | ||||||||
See Notes to Financial Statements | C-30 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL EMERGING MARKETS FUND
Schedule of Investments (Continued)
March 31, 2010
PL EMERGING MARKETS FUND
Schedule of Investments (Continued)
March 31, 2010
Shares | Value | |||||||
Mexico - 9.8% | ||||||||
America Movil SAB de CV ‘L’ ADR | 31,700 | $ | 1,595,778 | |||||
Bolsa Mexicana de Valores SAB de CV * | 7,400 | 11,731 | ||||||
Corporacion GEO SAB de CV ‘B’ * | 53,500 | 162,269 | ||||||
Fomento Economico Mexicano SAB de CV | 111,600 | 530,842 | ||||||
Fomento Economico Mexicano SAB de CV ADR | 7,750 | 368,357 | ||||||
Grupo Modelo SAB de CV ‘C’ * | 87,200 | 514,860 | ||||||
Grupo Televisa SA ADR | 29,200 | 613,784 | ||||||
Impulsora del Desarrollo y el Empleo en America Latina SAB de CV * | 86,000 | 119,640 | ||||||
SARE Holding SAB de CV ‘B’ * | 155,018 | 57,299 | ||||||
Wal-Mart de Mexico SAB de CV ‘V’ | 133,436 | 683,706 | ||||||
4,658,266 | ||||||||
Nigeria - 0.0% | ||||||||
Nigerian Breweries PLC | 39,400 | 16,159 | ||||||
Norway - 0.3% | ||||||||
DNO International ASA * + | 121,068 | 151,359 | ||||||
Philippines - 2.5% | ||||||||
Jollibee Foods Corp + | 121,200 | 158,187 | ||||||
Philippine Long Distance Telephone Co + | 4,100 | 219,440 | ||||||
SM Investments Corp + | 23,590 | 192,954 | ||||||
SM Prime Holdings Inc + | 2,969,060 | 642,964 | ||||||
1,213,545 | ||||||||
Russia - 4.1% | ||||||||
Magnit OAO + | 14,100 | 1,230,659 | ||||||
NovaTek OAO GDR (LI) + | 4,800 | 348,620 | ||||||
NovaTek OAO GDR (OTC) ~ + D | 5,000 | 363,146 | ||||||
1,942,425 | ||||||||
South Africa - 5.6% | ||||||||
Anglo Platinum Ltd * + | 4,442 | 450,760 | ||||||
Impala Platinum Holdings Ltd + | 34,500 | 1,012,818 | ||||||
JSE Ltd + | 3,100 | 27,519 | ||||||
MTN Group Ltd * + | 37,600 | 577,188 | ||||||
Standard Bank Group Ltd + | 39,334 | 616,052 | ||||||
2,684,337 | ||||||||
South Korea - 4.4% | ||||||||
GS Engineering & Construction Corp + | 1,392 | 119,916 | ||||||
Hyundai Engineering & Construction Co Ltd + | 2,266 | 124,300 | ||||||
MegaStudy Co Ltd + | 1,550 | 255,529 | ||||||
Mirae Asset Securities Co Ltd * + | 1,474 | 74,267 | ||||||
NHN Corp * + | 6,105 | 972,118 | ||||||
Shinsegae Co Ltd + | 1,179 | 557,694 | ||||||
2,103,824 | ||||||||
Taiwan - 7.5% | ||||||||
Epistar Corp + | 145,000 | 481,584 | ||||||
HTC Corp + | 32,450 | 379,110 | ||||||
MediaTek Inc + | 63,511 | 1,102,343 | ||||||
Synnex Technology International Corp + | 64,525 | 142,194 | ||||||
Taiwan Semiconductor Manufacturing Co Ltd + | 758,995 | 1,470,736 | ||||||
3,575,967 | ||||||||
Thailand - 0.2% | ||||||||
Siam Commercial Bank PCL + | 32,100 | 91,331 | ||||||
Turkey - 3.0% | ||||||||
Anadolu Efes Biracilik Ve Malt Sanayii AS + | 11,765 | 123,477 | ||||||
BIM Birlesik Magazalar AS + | 4,800 | 249,510 | ||||||
Enka Insaat ve Sanayi AS + | 101,949 | 475,633 | ||||||
Haci Omer Sabanci Holding AS + | 37,558 | 162,077 | ||||||
Haci Omer Sabanci Holding AS (New) * | 18,544 | 79,420 | ||||||
Turkcell Iletisim Hizmetleri AS + | 36,000 | 217,908 | ||||||
Yapi ve Kredi Bankasi AS * + | 56,512 | 144,413 | ||||||
1,452,438 | ||||||||
United Arab Emirates - 0.4% | ||||||||
DP World Ltd + | 388,300 | 200,242 | ||||||
United Kingdom - 5.5% | ||||||||
Anglo American PLC * + | 21,860 | 951,545 | ||||||
Cairn Energy PLC * + | 18,800 | 119,043 | ||||||
SABMiller PLC + | 36,890 | 1,082,027 | ||||||
Tullow Oil PLC + | 23,970 | 454,863 | ||||||
2,607,478 | ||||||||
United States - 0.7% | ||||||||
Sohu.com Inc * | 6,100 | 333,060 | ||||||
Total Common Stocks (Cost $27,375,889) | 42,045,267 | |||||||
EQUITY-LINKED STRUCTURED SECURITIES - 0.1% | ||||||||
Vietnam - 0.1% | ||||||||
UBS AG (for Vietnam Dairy Products) Exp. 02/12/12 * + D | 8,700 | 38,654 | ||||||
Total Equity-Linked Structured Securities (Cost $40,568) | 38,654 | |||||||
SHORT-TERM INVESTMENT - 3.0% | ||||||||
Money Market Fund - 3.0% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 1,447,648 | 1,447,648 | ||||||
Total Short-Term Investment (Cost $1,447,648) | 1,447,648 | |||||||
TOTAL INVESTMENTS - 98.8% (Cost $31,255,835) | 47,161,437 | |||||||
OTHER ASSETS & LIABILITIES, NET - 1.2% | 552,183 | |||||||
NET ASSETS - 100.0% | $ | 47,713,620 | ||||||
See Notes to Financial Statements | C-31 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL EMERGING MARKETS FUND
Schedule of Investments (Continued)
March 31, 2010
PL EMERGING MARKETS FUND
Schedule of Investments (Continued)
March 31, 2010
Notes to Schedule of Investments
(a) | As of March 31, 2010, the Fund was diversified as a percentage of net assets as follows: |
Consumer Staples | 20.2 | % | ||
Financials | 17.5 | % | ||
Information Technology | 16.2 | % | ||
Energy | 11.6 | % | ||
Telecommunication Services | 9.1 | % | ||
Consumer Discretionary | 9.0 | % | ||
Materials | 7.2 | % | ||
Industrials | 3.8 | % | ||
Short-Term Investment | 3.0 | % | ||
Health Care | 1.2 | % | ||
98.8 | % | |||
Other Assets & Liabilities, Net | 1.2 | % | ||
100.0 | % | |||
(b) | As of March 31, 2010, the Fund was diversified by geographical region as a percentage of net assets as follows: |
Brazil | 13.6 | % | ||
India | 12.6 | % | ||
Mexico | 9.8 | % | ||
Hong Kong | 8.4 | % | ||
Taiwan | 7.5 | % | ||
South Africa | 5.6 | % | ||
United Kingdom | 5.5 | % | ||
South Korea | 4.4 | % | ||
Russia | 4.1 | % | ||
United States | 3.7 | % | ||
Egypt | 3.1 | % | ||
Turkey | 3.0 | % | ||
Indonesia | 2.6 | % | ||
Philippines | 2.5 | % | ||
China | 1.9 | % | ||
Cayman | 1.7 | % | ||
Luxembourg | 1.6 | % | ||
Chile | 1.5 | % | ||
Denmark | 1.5 | % | ||
Canada | 1.0 | % | ||
Colombia | 0.9 | % | ||
Bermuda | 0.8 | % | ||
France | 0.4 | % | ||
United Arab Emirates | 0.4 | % | ||
Norway | 0.3 | % | ||
Thailand | 0.2 | % | ||
Kenya | 0.1 | % | ||
Vietnam | 0.1 | % | ||
98.8 | % | |||
Other Assets & Liabilities, Net | 1.2 | % | ||
100.0 | % | |||
(c) | Securities with a total aggregate value of $28,983,574 or 60.7% of the net assets, were valued under the fair value procedures established by the Funds’ Board of Trustees, including considerations to determine fair values for certain foreign equity securities, if applicable. | |
(d) | 0.8% of the Fund’s net assets were reported illiquid by the portfolio manager under the Funds’ policy. |
See Notes to Financial Statements | C-32 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL EMERGING MARKETS FUND
Schedule of Investments (Continued)
March 31, 2010
PL EMERGING MARKETS FUND
Schedule of Investments (Continued)
March 31, 2010
(e) | Fair Value Measurements |
The following is a summary of the Fund’s holdings as categorized under the three-tier hierarchy of inputs used in valuing the Fund’s assets and liabilities (See Note 10 in Notes to Financial Statements) as of March 31, 2010: |
Level 2 | Level 3 | |||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||
March 31, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||
Assets | ||||||||||||||||||
Preferred Stocks (1) | $ | 3,629,868 | $ | 3,629,868 | $ | — | $ | — | ||||||||||
Common Stocks | ||||||||||||||||||
Bermuda | 381,122 | 381,122 | — | — | ||||||||||||||
Brazil | 2,838,873 | 2,838,873 | — | — | ||||||||||||||
Canada | 458,016 | 458,016 | — | — | ||||||||||||||
Cayman | 834,589 | 474,000 | 360,589 | — | ||||||||||||||
Chile | 697,466 | 697,466 | — | — | ||||||||||||||
China | 906,730 | — | 906,730 | — | ||||||||||||||
Colombia | 446,599 | 446,599 | — | — | ||||||||||||||
Denmark | 720,984 | — | 720,984 | — | ||||||||||||||
Egypt | 1,480,746 | — | 1,480,746 | — | ||||||||||||||
France | 181,851 | 181,851 | — | — | ||||||||||||||
Hong Kong | 4,029,131 | — | 4,029,131 | — | ||||||||||||||
India | 5,989,129 | 1,945,438 | 4,043,691 | — | ||||||||||||||
Indonesia | 1,241,654 | — | 1,241,654 | — | ||||||||||||||
Kenya | 31,857 | 31,857 | — | — | ||||||||||||||
Luxembourg | 776,089 | 558,220 | 217,869 | — | ||||||||||||||
Mexico | 4,658,266 | 4,658,266 | — | — | ||||||||||||||
Nigeria | 16,159 | 16,159 | — | — | ||||||||||||||
Norway | 151,359 | — | 151,359 | — | ||||||||||||||
Philippines | 1,213,545 | — | 1,213,545 | — | ||||||||||||||
Russia | 1,942,425 | — | 1,942,425 | — | ||||||||||||||
South Africa | 2,684,337 | — | 2,684,337 | — | ||||||||||||||
South Korea | 2,103,824 | — | 2,103,824 | — | ||||||||||||||
Taiwan | 3,575,967 | — | 3,575,967 | — | ||||||||||||||
Thailand | 91,331 | — | 91,331 | — | ||||||||||||||
Turkey | 1,452,438 | 79,420 | 1,373,018 | — | ||||||||||||||
United Arab Emirates | 200,242 | — | 200,242 | — | ||||||||||||||
United Kingdom | 2,607,478 | — | 2,607,478 | — | ||||||||||||||
United States | 333,060 | 333,060 | — | — | ||||||||||||||
42,045,267 | 13,100,347 | 28,944,920 | — | |||||||||||||||
Equity-Linked Structured Securities | 38,654 | — | 38,654 | — | ||||||||||||||
Short-Term Investment | 1,447,648 | 1,447,648 | — | — | ||||||||||||||
Total | $ | 47,161,437 | $ | 18,177,863 | $ | 28,983,574 | $ | — | ||||||||||
(1) | For equity securities categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | C-33 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments
March 31, 2010
PL MANAGED BOND FUND
Schedule of Investments
March 31, 2010
Shares | Value | |||||||
CONVERTIBLE PREFERRED STOCKS - 1.3% | ||||||||
Financials - 1.3% | ||||||||
American International Group Inc 8.500% | 8,300 | $ | 84,826 | |||||
Lehman Brothers Holdings Inc 8.750% Ω | 1,500 | 3,375 | ||||||
Wells Fargo & Co 7.500% | 3,000 | 2,931,000 | ||||||
3,019,201 | ||||||||
Total Convertible Preferred Stocks (Cost $3,661,903) | 3,019,201 | |||||||
PREFERRED STOCKS - 0.0% | ||||||||
Financials - 0.0% | ||||||||
Fannie Mae * | 8,000 | 10,160 | ||||||
Total Preferred Stocks (Cost $200,000) | 10,160 | |||||||
Principal | ||||||||
Amount | ||||||||
CORPORATE BONDS & NOTES - 30.4% | ||||||||
Consumer Discretionary - 0.0% | ||||||||
General Motors Corp | ||||||||
8.375% due 07/05/33 Ω | EUR | 200,000 | 101,975 | |||||
Consumer Staples - 0.6% | ||||||||
Kraft Foods Inc | ||||||||
6.125% due 02/01/18 | $ | 700,000 | 767,197 | |||||
6.875% due 02/01/38 | 100,000 | 108,532 | ||||||
Reynolds American Inc | ||||||||
7.625% due 06/01/16 | 100,000 | 112,444 | ||||||
Wal-Mart Stores Inc | ||||||||
5.800% due 02/15/18 | 200,000 | 223,540 | ||||||
6.500% due 08/15/37 | 100,000 | 111,234 | ||||||
1,322,947 | ||||||||
Energy - 0.7% | ||||||||
Colorado Interstate Gas Co | ||||||||
6.800% due 11/15/15 | 200,000 | 224,278 | ||||||
Gaz Capital SA (Russia) | ||||||||
8.146% due 04/11/18 ~ | 500,000 | 566,250 | ||||||
NGPL PipeCo LLC | ||||||||
7.119% due 12/15/17 ~ | 500,000 | 561,555 | ||||||
Shell International Finance BV (Netherlands) | ||||||||
5.500% due 03/25/40 | 100,000 | 98,382 | ||||||
The Williams Cos Inc | ||||||||
6.375% due 10/01/10 ~ | 100,000 | 101,861 | ||||||
1,552,326 | ||||||||
Financials - 25.6% | ||||||||
American Express Bank FSB | ||||||||
5.500% due 04/16/13 | 600,000 | 643,034 | ||||||
American Express Centurion Bank | ||||||||
6.000% due 09/13/17 | 1,200,000 | 1,289,417 | ||||||
American General Finance Corp | ||||||||
4.875% due 05/15/10 | 600,000 | 599,769 | ||||||
American International Group Inc | ||||||||
5.850% due 01/16/18 | 800,000 | 744,373 | ||||||
ANZ National International Ltd (New Zealand) | ||||||||
6.200% due 07/19/13 ~ | 300,000 | 330,831 | ||||||
Bank of America Corp | ||||||||
4.500% due 04/01/15 | 1,900,000 | 1,917,968 | ||||||
4.875% due 01/15/13 | 100,000 | 104,736 | ||||||
5.650% due 05/01/18 | 700,000 | 709,308 | ||||||
Bank of China Hong Kong Ltd (Hong Kong) | ||||||||
5.550% due 02/11/20 ~ | 100,000 | 100,007 | ||||||
Barclays Bank PLC (United Kingdom) | ||||||||
5.000% due 09/22/16 | 100,000 | 102,872 | ||||||
5.450% due 09/12/12 | 800,000 | 864,395 | ||||||
6.050% due 12/04/17 ~ | 2,700,000 | 2,788,128 | ||||||
10.179% due 06/12/21 ~ | 720,000 | 941,335 | ||||||
Citibank NA | ||||||||
1.875% due 05/07/12 | 900,000 | 912,137 | ||||||
1.875% due 06/04/12 | 400,000 | 405,052 | ||||||
Citigroup Capital XXI | ||||||||
8.300% due 12/21/77 § | 2,000,000 | 2,035,000 | ||||||
Citigroup Funding Inc | ||||||||
2.250% due 12/10/12 | 1,700,000 | 1,728,711 | ||||||
Citigroup Inc | ||||||||
2.125% due 04/30/12 | 1,400,000 | 1,426,349 | ||||||
3.625% due 11/30/17 § | EUR | 500,000 | 624,085 | |||||
5.500% due 04/11/13 | $ | 700,000 | 736,056 | |||||
5.500% due 10/15/14 | 1,000,000 | 1,035,938 | ||||||
5.625% due 08/27/12 | 50,000 | 52,443 | ||||||
5.875% due 05/29/37 | 200,000 | 180,734 | ||||||
8.500% due 05/22/19 | 200,000 | 233,820 | ||||||
Commonwealth Bank of Australia (Australia) | ||||||||
0.671% due 07/12/13 § ~ | 1,600,000 | 1,610,437 | ||||||
Danske Bank AS (Denmark) | ||||||||
2.500% due 05/10/12 ~ | 200,000 | 204,563 | ||||||
Deutsche Bank AG (Germany) | ||||||||
6.000% due 09/01/17 | 900,000 | 987,944 | ||||||
Dexia Credit Local (France) | ||||||||
0.928% due 09/23/11 § ~ | 500,000 | 503,794 | ||||||
Ford Motor Credit Co LLC | ||||||||
7.250% due 10/25/11 | 100,000 | 103,427 | ||||||
7.800% due 06/01/12 | 300,000 | 311,303 | ||||||
9.750% due 09/15/10 | 100,000 | 102,409 | ||||||
General Electric Capital Corp | ||||||||
2.000% due 09/28/12 | 800,000 | 811,380 | ||||||
2.250% due 03/12/12 | 1,000,000 | 1,021,751 | ||||||
5.875% due 01/14/38 | 900,000 | 858,519 | ||||||
6.875% due 01/10/39 | 200,000 | 216,426 | ||||||
General Motors Acceptance Corp | ||||||||
6.625% due 05/15/12 | 300,000 | 301,915 | ||||||
7.000% due 02/01/12 | 600,000 | 609,732 | ||||||
8.300% due 02/12/15 ~ | 200,000 | 210,500 | ||||||
HCP Inc | ||||||||
5.950% due 09/15/11 | 900,000 | 939,083 | ||||||
ING Bank NV (Netherlands) | ||||||||
1.090% due 03/30/12 § ~ Δ | 700,000 | 699,867 | ||||||
Intesa Sanpaolo (Italy) | ||||||||
2.375% due 12/21/12 | 1,400,000 | 1,410,660 | ||||||
JPMorgan Chase & Co | ||||||||
7.900% § ± | 300,000 | 320,911 | ||||||
KeyBank NA | ||||||||
7.000% due 02/01/11 | 400,000 | 419,215 | ||||||
Keycorp | ||||||||
0.860% due 11/22/10 § | EUR | 500,000 | 651,692 | |||||
LeasePlan Corp NV (Netherlands) | ||||||||
3.125% due 02/10/12 | 300,000 | 418,524 | ||||||
Lehman Brothers Holdings Inc | ||||||||
2.851% due 12/23/08 § Ω | $ | 500,000 | 117,500 | |||||
5.625% due 01/24/13 Ω | 1,200,000 | 288,000 | ||||||
6.750% due 12/28/17 Ω | 500,000 | 2,500 | ||||||
6.875% due 05/02/18 Ω | 100,000 | 24,125 | ||||||
Lloyds TSB Bank PLC (United Kingdom) | ||||||||
12.000% § ~ ± | 1,100,000 | 1,227,549 | ||||||
Macquarie Bank Ltd (Australia) | ||||||||
3.300% due 07/17/14 ~ | 5,300,000 | 5,376,702 |
See Notes to Financial Statements | C-34 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
March 31, 2010
PL MANAGED BOND FUND
Schedule of Investments (Continued)
March 31, 2010
Principal | ||||||||
Amount | Value | |||||||
Merrill Lynch & Co Inc | ||||||||
6.875% due 04/25/18 | $ | 900,000 | $ | 971,410 | ||||
Metropolitan Life Global Funding I | ||||||||
5.125% due 04/10/13 ~ | 300,000 | 322,304 | ||||||
Morgan Stanley | ||||||||
0.540% due 04/19/12 § | 100,000 | 97,783 | ||||||
5.950% due 12/28/17 | 1,900,000 | 1,954,707 | ||||||
Nationwide Building Society (United Kingdom) | ||||||||
6.250% due 02/25/20 ~ | 300,000 | 306,450 | ||||||
Nykredit Realkredit AS (Denmark) | ||||||||
2.537% due 04/01/38 § | DKK | 898,577 | 155,284 | |||||
2.537% due 10/01/38 § | 757,559 | 132,564 | ||||||
Principal Life Income Funding Trusts | ||||||||
5.300% due 04/24/13 | $ | 100,000 | 107,422 | |||||
Realkredit Danmark AS (Denmark) | ||||||||
2.730% due 01/01/38 § | DKK | 3,226,374 | 557,474 | |||||
Regions Bank/Birmingham AL | ||||||||
7.500% due 05/15/18 | $ | 300,000 | 298,086 | |||||
Regions Financial Corp | ||||||||
0.455% due 06/26/12 § | 900,000 | 823,229 | ||||||
Santander U.S. Debt SA Unipersonal (Spain) | ||||||||
1.089% due 03/30/12 § ~ | 1,500,000 | 1,499,964 | ||||||
SLM Corp | ||||||||
0.457% due 03/15/11 § | 600,000 | 585,403 | ||||||
0.479% due 10/25/11 § | 900,000 | 856,179 | ||||||
4.082% due 10/01/14 § | 100,000 | 81,388 | ||||||
Temasek Financial I Ltd (Singapore) | ||||||||
4.300% due 10/25/19 ~ | 300,000 | 298,067 | ||||||
The Bear Stearns Cos LLC | �� | |||||||
0.442% due 11/28/11 § | 2,500,000 | 2,500,913 | ||||||
6.400% due 10/02/17 | 400,000 | 442,419 | ||||||
The Goldman Sachs Group Inc | ||||||||
0.429% due 02/06/12 § | 200,000 | 199,028 | ||||||
6.250% due 09/01/17 | 1,100,000 | 1,184,303 | ||||||
6.750% due 10/01/37 | 1,200,000 | 1,202,222 | ||||||
The Royal Bank of Scotland Group PLC | ||||||||
(United Kingdom) | ||||||||
0.650% due 04/08/11 § ~ | 400,000 | 400,791 | ||||||
2.625% due 05/11/12 ~ | 100,000 | 102,149 | ||||||
3.000% due 12/09/11 ~ | 800,000 | 822,601 | ||||||
7.640% § ± | 500,000 | 317,500 | ||||||
TransCapitalInvest Ltd for OJSC AK | ||||||||
Transneft (Ireland) | ||||||||
8.700% due 08/07/18 ~ | 100,000 | 120,138 | ||||||
UBS AG (Switzerland) | ||||||||
1.352% due 02/23/12 § | 300,000 | 301,595 | ||||||
5.875% due 12/20/17 | 700,000 | 725,960 | ||||||
Wachovia Corp | ||||||||
0.381% due 10/15/11 § | 800,000 | 796,709 | ||||||
0.439% due 08/01/13 § | 300,000 | 291,431 | ||||||
Wells Fargo & Co | ||||||||
7.980% § ± | 1,700,000 | 1,785,000 | ||||||
60,497,399 | ||||||||
Health Care - 0.4% | ||||||||
Roche Holdings Inc | ||||||||
7.000% due 03/01/39 ~ | 400,000 | 476,772 | ||||||
UnitedHealth Group Inc | ||||||||
6.000% due 02/15/18 | 400,000 | 427,718 | ||||||
6.875% due 02/15/38 | 100,000 | 106,467 | ||||||
1,010,957 | ||||||||
Industrials - 1.6% | ||||||||
International Lease Finance Corp | ||||||||
0.601% due 07/13/12 § | 2,682,000 | 2,391,352 | ||||||
4.950% due 02/01/11 | 1,000,000 | 1,000,949 | ||||||
5.300% due 05/01/12 | 300,000 | 291,521 | ||||||
3,683,822 | ||||||||
Materials - 0.2% | ||||||||
Codelco Inc (Chile) | ||||||||
6.150% due 10/24/36 ~ | 200,000 | 206,465 | ||||||
Vale Overseas Ltd (Cayman) | ||||||||
6.250% due 01/23/17 | 200,000 | 217,338 | ||||||
423,803 | ||||||||
Telecommunication Services - 1.0% | ||||||||
AT&T Inc | ||||||||
6.300% due 01/15/38 | 200,000 | 203,625 | ||||||
BellSouth Corp | ||||||||
4.950% due 04/26/10 ~ | 900,000 | 902,041 | ||||||
Verizon Wireless Capital LLC | ||||||||
5.250% due 02/01/12 | 1,300,000 | 1,385,959 | ||||||
2,491,625 | ||||||||
Utilities - 0.3% | ||||||||
Electricite de France (France) | ||||||||
5.500% due 01/26/14 ~ | 200,000 | 219,758 | ||||||
6.500% due 01/26/19 ~ | 200,000 | 224,808 | ||||||
6.950% due 01/26/39 ~ | 200,000 | 230,378 | ||||||
674,944 | ||||||||
Total Corporate Bonds & Notes (Cost $69,832,261) | 71,759,798 | |||||||
MORTGAGE-BACKED SECURITIES - 25.3% | ||||||||
Collateralized Mortgage Obligations - Commercial - 2.5% | ||||||||
Bear Stearns Commercial Mortgage Securities | ||||||||
5.471% due 01/12/45 “ § | 100,000 | 101,990 | ||||||
5.700% due 06/11/50 “ | 200,000 | 193,385 | ||||||
Commercial Mortgage Pass-Through Certificates | ||||||||
5.306% due 12/10/46 “ | 200,000 | 195,902 | ||||||
Credit Suisse Mortgage Capital Certificates | ||||||||
5.467% due 09/15/39 “ | 900,000 | 866,010 | ||||||
5.846% due 03/15/39 “ § | 100,000 | 98,320 | ||||||
Greenwich Capital Commercial Funding Corp | ||||||||
5.444% due 03/10/39 “ | 400,000 | 389,571 | ||||||
LB-UBS Commercial Mortgage Trust | ||||||||
5.866% due 09/15/45 “ § | 600,000 | 591,557 | ||||||
Merrill Lynch-Floating Trust | ||||||||
0.768% due 07/09/21 “ § ~ | 500,000 | 437,016 | ||||||
Merrill Lynch/Countrywide Commercial | ||||||||
Mortgage Trust | ||||||||
5.700% due 09/12/49 “ | 500,000 | 472,213 | ||||||
Morgan Stanley Capital I | ||||||||
5.731% due 07/12/44 “ § | 1,700,000 | 1,756,677 | ||||||
Wachovia Bank Commercial Mortgage Trust | ||||||||
0.320% due 09/15/21 “ § ~ | 323,914 | 289,246 | ||||||
5.342% due 12/15/43 “ | 600,000 | 521,794 | ||||||
5,913,681 | ||||||||
Collateralized Mortgage Obligations - Residential - 6.2% | ||||||||
Adjustable Rate Mortgage Trust | ||||||||
3.113% due 05/25/35 “ § | 43,967 | 42,092 | ||||||
Banc of America Funding Corp | ||||||||
2.990% due 05/25/35 “ § | 190,675 | 175,469 | ||||||
Banc of America Mortgage Securities Inc | ||||||||
3.994% due 07/25/33 “ § | 101,497 | 94,765 | ||||||
5.000% due 05/25/34 “ | 50,898 | 51,356 | ||||||
Bear Stearns Adjustable Rate Mortgage Trust | ||||||||
2.560% due 08/25/35 “ § | 84,630 | 78,896 | ||||||
2.934% due 03/25/35 “ § | 185,952 | 176,204 | ||||||
4.103% due 08/25/33 “ § | 226,169 | 214,988 | ||||||
4.625% due 10/25/35 “ § | 507,674 | 447,643 |
See Notes to Financial Statements | C-35 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
March 31, 2010
PL MANAGED BOND FUND
Schedule of Investments (Continued)
March 31, 2010
Principal | ||||||||
Amount | Value | |||||||
Bear Stearns Alt-A Trust | ||||||||
2.952% due 05/25/35 “ § | $ | 70,731 | $ | 50,358 | ||||
5.119% due 09/25/35 “ § | 86,722 | 64,247 | ||||||
5.579% due 11/25/36 “ § | 113,964 | 75,412 | ||||||
Chevy Chase Mortgage Funding Corp | ||||||||
0.496% due 08/25/35 “ § ~ | 93,353 | 58,141 | ||||||
Citigroup Mortgage Loan Trust Inc | ||||||||
4.248% due 08/25/35 “ § | 101,705 | 90,095 | ||||||
4.700% due 12/25/35 “ § | 166,348 | 152,552 | ||||||
Countrywide Alternative Loan Trust | ||||||||
5.008% due 06/25/37 “ § | 454,813 | 264,899 | ||||||
Countrywide Home Loan Mortgage | ||||||||
Pass-Through Trust | ||||||||
0.566% due 03/25/35 “ § | 41,391 | 24,508 | ||||||
0.586% due 06/25/35 “ § ~ | 207,226 | 182,860 | ||||||
Credit Suisse First Boston Mortgage | ||||||||
Securities Corp | ||||||||
0.837% due 03/25/32 “ § ~ | 7,584 | 6,284 | ||||||
6.000% due 11/25/35 “ | 157,455 | 136,765 | ||||||
Downey Saving and Loan Association | ||||||||
Mortgage Loan Trust | ||||||||
0.417% due 04/19/48 “ § | 640,863 | 204,148 | ||||||
Fannie Mae | ||||||||
0.447% due 10/27/37 “ § | 3,400,000 | 3,375,571 | ||||||
1.625% due 11/25/23 “ § | 405,622 | 403,571 | ||||||
4.250% due 07/25/17 “ | 193,458 | 200,896 | ||||||
4.500% due 04/25/17 - 10/25/17 “ | 349,665 | 362,543 | ||||||
5.000% due 01/25/17 “ | 121,375 | 124,178 | ||||||
6.000% due 03/25/31 “ | 1,205,646 | 1,268,555 | ||||||
Freddie Mac | ||||||||
1.663% due 10/25/44 “ § | 62,757 | 60,122 | ||||||
1.863% due 07/25/44 “ § | 336,418 | 322,887 | ||||||
4.500% due 06/15/17 - 10/15/19 “ | 350,960 | 360,514 | ||||||
5.000% due 04/15/18 - 04/15/30 “ | 2,182,323 | 2,225,586 | ||||||
5.500% due 03/15/17 “ | 34,574 | 35,884 | ||||||
8.000% due 04/15/30 “ | 389,115 | 433,119 | ||||||
GMAC Mortgage Corp Loan Trust | ||||||||
5.500% due 09/25/34 “ | 31,819 | 31,620 | ||||||
Harborview Mortgage Loan Trust | ||||||||
0.327% due 01/19/38 “ § | 40,065 | 39,594 | ||||||
0.407% due 12/19/36 “ § | 873,901 | 468,856 | ||||||
0.427% due 01/19/38 “ § | 267,336 | 148,119 | ||||||
0.457% due 05/19/35 “ § | 45,831 | 27,241 | ||||||
JPMorgan Mortgage Trust | ||||||||
5.015% due 02/25/35 “ § | 78,399 | 77,667 | ||||||
5.750% due 01/25/36 “ | 112,769 | 97,033 | ||||||
Mellon Residential Funding Corp | ||||||||
0.710% due 06/15/30 “ § | 16,616 | 14,007 | ||||||
Merrill Lynch Mortgage Investors Inc | ||||||||
0.456% due 02/25/36 “ § | 56,701 | 40,931 | ||||||
Residential Accredit Loans Inc | ||||||||
0.426% due 06/25/46 “ § | 127,182 | 47,352 | ||||||
6.000% due 06/25/36 “ | 397,221 | 215,196 | ||||||
Residential Asset Securitization Trust | ||||||||
0.646% due 05/25/33 “ § | 26,126 | 22,895 | ||||||
Structured Asset Mortgage Investments Inc | ||||||||
0.466% due 05/25/36 “ § | 270,454 | 140,713 | ||||||
Structured Asset Securities Corp | ||||||||
2.461% due 10/25/35 “ § ~ | 108,964 | 91,913 | ||||||
2.676% due 08/25/32 “ § | 29,760 | 29,001 | ||||||
Washington Mutual Mortgage | ||||||||
Pass-Through Certificates | ||||||||
0.556% due 01/25/45 “ § | 37,196 | 28,797 | ||||||
0.566% due 01/25/45 “ § | 36,630 | 28,341 | ||||||
0.786% due 12/25/27 “ § | 96,008 | 83,536 | ||||||
1.863% due 08/25/42 “ § | 6,304 | 4,493 | ||||||
3.036% due 02/27/34 “ § | 12,621 | 11,969 | ||||||
3.286% due 09/25/46 “ § | 125,959 | 77,441 | ||||||
5.855% due 02/25/37 “ § | 600,000 | 459,486 | ||||||
Wells Fargo Mortgage-Backed Securities Trust | ||||||||
2.965% due 07/25/35 “ § | 117,825 | 117,501 | ||||||
3.086% due 12/25/34 “ § | 185,085 | 180,117 | ||||||
4.500% due 11/25/18 “ | 131,649 | 132,624 | ||||||
5.028% due 04/25/36 “ § | 244,233 | 221,849 | ||||||
5.343% due 08/25/36 “ § | 55,871 | 54,915 | ||||||
14,658,315 | ||||||||
Fannie Mae - 11.1% | ||||||||
1.663% due 10/01/44 “ § | 62,671 | 62,655 | ||||||
2.823% due 11/01/34 “ § | 239,729 | 248,812 | ||||||
3.261% due 11/01/32 “ § | 242,772 | 254,073 | ||||||
3.452% due 12/01/35 “ § | 98,404 | 101,494 | ||||||
4.667% due 12/01/36 “ § | 26,679 | 27,982 | ||||||
4.701% due 09/01/35 “ § | 281,234 | 293,559 | ||||||
5.500% due 12/01/20 - 02/01/38 “ | 6,938,598 | 7,403,928 | ||||||
6.000% due 09/01/22 - 04/13/40 “ | 16,759,204 | 17,829,319 | ||||||
6.500% due 03/01/17 “ | 66,892 | 72,468 | ||||||
26,294,290 | ||||||||
Freddie Mac - 4.5% | ||||||||
2.663% due 11/01/31 “ § | 9,337 | 9,641 | ||||||
3.279% due 04/01/32 “ § | 29,552 | 30,387 | ||||||
4.664% due 06/01/35 “ § | 444,014 | 456,430 | ||||||
4.750% due 09/01/35 “ § | 253,573 | 265,441 | ||||||
5.251% due 09/01/35 “ § | 32,177 | 33,475 | ||||||
5.500% due 03/01/23 - 04/13/40 “ | 9,042,857 | 9,547,657 | ||||||
6.000% due 12/01/22 - 03/01/23 “ | 186,783 | 202,328 | ||||||
10,545,359 | ||||||||
Government National Mortgage Association - 1.0% | ||||||||
6.500% due 11/15/36-10/15/38 “ | 2,148,640 | 2,317,743 | ||||||
Total Mortgage-Backed Securities (Cost $60,077,579) | 59,729,388 | |||||||
ASSET-BACKED SECURITIES - 0.5% | ||||||||
Ally Auto Receivables Trust | ||||||||
1.320% due 03/15/12 “ ~ | 200,000 | 200,872 | ||||||
Asset Backed Funding Certificates | ||||||||
0.596% due 06/25/34 “ § | 138,554 | 106,572 | ||||||
Bear Stearns Asset Backed Securities Trust | ||||||||
4.113% due 10/25/36 “ § | 210,912 | 150,416 | ||||||
Carrington Mortgage Loan Trust | ||||||||
0.406% due 01/25/36 “ § | 96,916 | 95,667 | ||||||
JPMorgan Mortgage Acquisition Corp | ||||||||
0.296% due 07/25/36 “ § | 15,391 | 15,237 | ||||||
Long Beach Mortgage Loan Trust | ||||||||
0.526% due 10/25/34 “ § | 18,554 | 15,689 | ||||||
Park Place Securities Inc | ||||||||
0.506% due 09/25/35 “ § | 138,718 | 120,632 | ||||||
SBI Heloc Trust | ||||||||
0.416% due 08/25/36 “ § ~ | 35,373 | 33,936 | ||||||
Securitized Asset-Backed Receivables LLC Trust | ||||||||
0.376% due 05/25/37 “ § | 229,525 | 159,803 | ||||||
SLM Student Loan Trust | ||||||||
0.249% due 10/25/16 “ § | 153,110 | 152,993 | ||||||
Small Business Administration | ||||||||
4.754% due 08/10/14 “ | 56,350 | 59,096 | ||||||
Structured Asset Securities Corp | ||||||||
0.296% due 10/25/36 “ § | 40,019 | 39,642 | ||||||
Total Asset-Backed Securities (Cost $1,332,240) | 1,150,555 | |||||||
See Notes to Financial Statements | C-36 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
March 31, 2010
PL MANAGED BOND FUND
Schedule of Investments (Continued)
March 31, 2010
Principal | ||||||||
Amount | Value | |||||||
U.S. GOVERNMENT AGENCY ISSUES - 1.3% | ||||||||
Federal Home Loan Bank | ||||||||
1.000% due 12/28/11 | $ | 100,000 | $ | 100,023 | ||||
Freddie Mac | ||||||||
0.197% due 09/19/11 § | 1,800,000 | 1,799,780 | ||||||
1.125% due 06/01/11 | 1,000,000 | 1,005,514 | ||||||
1.125% due 12/15/11 | 100,000 | 100,271 | ||||||
Total U.S. Government Agency Issues (Cost $2,997,938) | 3,005,588 | |||||||
U.S. TREASURY OBLIGATIONS - 3.1% | ||||||||
U.S. Treasury Bonds - 0.8% | ||||||||
4.250% due 05/15/39 | 700,000 | 648,813 | ||||||
4.375% due 02/15/38 | 200,000 | 190,250 | ||||||
4.375% due 11/15/39 | 1,100,000 | 1,040,532 | ||||||
1,879,595 | ||||||||
U.S. Treasury Notes - 2.3% | ||||||||
0.875% due 01/31/12 | 3,500,000 | 3,497,130 | ||||||
3.250% due 03/31/17 | 1,400,000 | 1,397,813 | ||||||
3.625% due 02/15/20 | 600,000 | 589,969 | ||||||
5,484,912 | ||||||||
Total U.S. Treasury Obligations (Cost $7,522,507) | 7,364,507 | |||||||
FOREIGN GOVERNMENT BONDS & NOTES - 1.2% | ||||||||
Canadian Government Bond (Canada) | ||||||||
2.000% due 12/01/14 | CAD | 500,000 | 475,124 | |||||
Export-Import Bank of Korea (South Korea) | ||||||||
0.471% due 10/04/11 § ~ | $ | 800,000 | 801,373 | |||||
French Treasury Notes (France) | ||||||||
2.500% due 01/15/15 | EUR | 300,000 | 409,688 | |||||
Government of France OAT (France) | ||||||||
3.500% due 04/25/20 | 300,000 | 407,426 | ||||||
Republic of Panama (Panama) | ||||||||
9.375% due 04/01/29 | $ | 40,000 | 54,500 | |||||
Societe de Financement de l’Economie | ||||||||
Francaise (France) | ||||||||
2.125% due 05/20/12 | EUR | 300,000 | 412,572 | |||||
3.375% due 05/05/14 ~ | $ | 200,000 | 207,716 | |||||
United Mexican States (Mexico) | ||||||||
5.950% due 03/19/19 | 100,000 | 108,500 | ||||||
6.050% due 01/11/40 | 100,000 | 100,250 | ||||||
Total Foreign Government Bonds & Notes (Cost $2,947,228) | 2,977,149 | |||||||
MUNICIPAL BONDS - 1.6% | ||||||||
Buckeye Tobacco Settlement Financing | ||||||||
Authority OH ‘A2’ | ||||||||
5.875% due 06/01/47 | 1,100,000 | 801,119 | ||||||
Clark County NV ‘C’ | ||||||||
6.820% due 07/01/45 | 200,000 | 205,406 | ||||||
Los Angeles Unified School District CA ‘A1’ | ||||||||
4.500% due 01/01/28 | 400,000 | 377,872 | ||||||
North Carolina Turnkpike Authority ‘B’ | ||||||||
6.700% due 01/01/39 | 100,000 | 104,280 | ||||||
State of California | ||||||||
5.650% due 04/01/39 § | 100,000 | 104,343 | ||||||
7.500% due 04/01/34 | 100,000 | 103,285 | ||||||
7.550% due 04/01/39 | 100,000 | 103,487 | ||||||
State of Illinois | ||||||||
4.071% due 01/01/14 | 200,000 | 202,280 | ||||||
Tobacco Securitization Authority of Southern | ||||||||
California ‘A1’ | ||||||||
5.000% due 06/01/37 | 800,000 | 563,048 | ||||||
Tobacco Settlement Finance Authority of WV ‘A’ | ||||||||
7.467% due 06/01/47 | 860,000 | 683,786 | ||||||
University of California Build America Bonds | ||||||||
6.270% due 05/15/31 | 500,000 | 497,065 | ||||||
Total Municipal Bonds (Cost $4,203,132) | 3,745,971 | |||||||
SHORT-TERM INVESTMENTS - 40.5% | ||||||||
U.S. Government Agency Issue - 1.0% | ||||||||
Freddie Mac | ||||||||
0.200% due 07/08/10 | 2,300,000 | 2,298,997 | ||||||
U.S. Treasury Bills - 11.8% | ||||||||
0.107% due 06/24/10 | 83,000 | 82,976 | ||||||
0.116% due 05/27/10 | 4,617,000 | 4,615,905 | ||||||
0.141% due 05/13/10 | 2,300,000 | 2,299,595 | ||||||
0.182% due 08/12/10 ‡ | 4,600,000 | 4,597,162 | ||||||
0.183% due 09/02/10 ‡ | 80,000 | 79,933 | ||||||
0.185% due 08/05/10 ‡ | 4,600,000 | 4,597,392 | ||||||
0.206% due 04/08/10 | 4,600,000 | 4,599,897 | ||||||
0.219% due 08/26/10 | 7,000,000 | 6,994,568 | ||||||
27,867,428 | ||||||||
Repurchase Agreements - 27.2% | ||||||||
Barclays PLC | ||||||||
0.030% due 04/01/10 (Dated 03/31/10, repurchase price of $1,000,001; collateralized by U.S. Treasury Inflation Protected Securities: | ||||||||
2.625% due 07/15/17 and value $1,024,598) | 1,000,000 | 1,000,000 | ||||||
JPMorgan Chase & Co | ||||||||
0.010% due 04/01/10 (Dated 03/31/10, repurchase price of $16,300,005; collateralized by Freddie Mac: | ||||||||
0.189% due 05/01/12 and value $16,653,312) | 16,300,000 | 16,300,000 | ||||||
Morgan Stanley | ||||||||
0.030% due 04/01/10 (Dated 03/31/10, repurchase price of $23,500,020; collateralized by U.S. Treasury Notes: | ||||||||
2.375% due 08/31/14 and value $24,018,545) | 23,500,000 | 23,500,000 | ||||||
The Goldman Sachs Group Inc | ||||||||
0.010% due 04/01/10 (Dated 03/31/10, repurchase price of $23,500,007; collateralized by Fannie Mae: | ||||||||
5.000% due 12/01/33 and value $24,319,659) | 23,500,000 | 23,500,000 | ||||||
64,300,000 | ||||||||
See Notes to Financial Statements | C-37 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
March 31, 2010
PL MANAGED BOND FUND
Schedule of Investments (Continued)
March 31, 2010
Shares | Value | |||||||
Money Market Fund - 0.5% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 1,066,555 | $ | 1,066,555 | |||||
Total Short-Term Investments (Cost $95,531,321) | 95,532,980 | |||||||
TOTAL INVESTMENTS - 105.2% (Cost $248,306,109) | 248,295,297 | |||||||
OTHER ASSETS & LIABILITIES, NET - (5.2%) | (12,337,818 | ) | ||||||
NET ASSETS - 100.0% | $ | 235,957,479 | ||||||
Notes to Schedule of Investments
(a) | As of March 31, 2010, the Fund was diversified as a percentage of net assets as follows: |
Short-Term Investments | 40.5 | % | ||
Corporate Bonds & Notes | 30.4 | % | ||
Mortgage-Backed Securities | 25.3 | % | ||
U.S. Treasury Obligations | 3.1 | % | ||
Municipal Bonds | 1.6 | % | ||
Equity Securities | 1.3 | % | ||
U.S. Government Agency Issues | 1.3 | % | ||
Foreign Government Bonds & Notes | 1.2 | % | ||
Asset-Backed Securities | 0.5 | % | ||
105.2 | % | |||
Other Assets & Liabilities, Net | (5.2 | %) | ||
100.0 | % | |||
(b) | As of March 31, 2010, the Fund’s Standard & Poor’s quality ratings on its investments as a percentage of total fixed income were as follows: |
AAA / U.S. Government & Agency Issues | 72.5 | % | ||
AA | 4.2 | % | ||
A | 12.1 | % | ||
BBB | 5.2 | % | ||
BB | 3.2 | % | ||
B | 1.1 | % | ||
CCC | 0.8 | % | ||
C | 0.1 | % | ||
Not Rated | 0.8 | % | ||
100.0 | % | |||
(c) | Short-term securities reflect either the stated coupon rate or the annualized effective yield on the date of purchase for discounted securities. | |
(d) | Securities with a total aggregate value of $537,475 or 0.2% of the net assets were in default as of March 31, 2010. | |
(e) | 0.8% of the Fund’s net assets were reported illiquid by the portfolio manager under the Funds’ policy. | |
(f) | Open futures contracts outstanding as of March 31, 2010 were as follows: |
Unrealized | ||||||||||||
Number of | Notional | Appreciation | ||||||||||
Long Futures Outstanding | Contracts | Amount | (Depreciation) | |||||||||
Euro-Bobl 5-Year Notes (06/10) | 47 | EUR | 4,700,000 | $ | 25,365 | |||||||
Euro-Bund 10-Year Notes (06/10) | 18 | 1,800,000 | 15,911 | |||||||||
Euro-Bund 10-Year Notes (06/10) | 2 | 200,000 | (783 | ) | ||||||||
Eurodollar (06/10) | 291 | $ | 291,000,000 | 284,512 | ||||||||
Eurodollar (06/10) | 12 | 12,000,000 | (275 | ) | ||||||||
Eurodollar (09/10) | 105 | 105,000,000 | 55,700 | |||||||||
Eurodollar (09/10) | 35 | 35,000,000 | (2,325 | ) | ||||||||
Eurodollar (12/10) | 74 | 74,000,000 | 45,737 | |||||||||
Eurodollar (12/10) | 29 | 29,000,000 | (2,125 | ) | ||||||||
Eurodollar (03/11) | 2 | 2,000,000 | 3,500 | |||||||||
U.S. Treasury 2-Year Notes (06/10) | 85 | 17,000,000 | 13,594 | |||||||||
U.S. Treasury 2-Year Notes (06/10) | 161 | 32,200,000 | (40,547 | ) | ||||||||
U.S. Treasury 5-Year Notes (06/10) | 1 | 100,000 | (820 | ) | ||||||||
U.S. Treasury 10-Year Notes (06/10) | 10 | 1,000,000 | 4,766 | |||||||||
U.S. Treasury 10-Year Notes (06/10) | 97 | 9,700,000 | (82,594 | ) | ||||||||
United Kingdom 90-Day LIBOR | ||||||||||||
Sterling Interest Rate (06/10) | 17 | GBP | 8,500,000 | 12,519 | ||||||||
United Kingdom 90-Day LIBOR | ||||||||||||
Sterling Interest Rate (09/10) | 10 | 5,000,000 | 1,366 | |||||||||
United Kingdom 90-Day LIBOR | ||||||||||||
Sterling Interest Rate (12/10) | 11 | 5,500,000 | 2,561 | |||||||||
Short Futures Outstanding | ||||||||||||
Euro-Bund 10-Year Notes | ||||||||||||
Call Options | ||||||||||||
Strike @ EUR 125.00 (06/10) | 1 | EUR | 100,000 | 98 | ||||||||
Euro-Bund 10-Year Notes | ||||||||||||
Put Options | ||||||||||||
Strike @ EUR 120.00 (06/10) | 1 | 100,000 | 28 | |||||||||
$ | 336,188 | |||||||||||
See Notes to Financial Statements | C-38 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
March 31, 2010
PL MANAGED BOND FUND
Schedule of Investments (Continued)
March 31, 2010
(g) | Forward foreign currency contracts outstanding as of March 31, 2010 were as follows: |
Principal | ||||||||||||||||
Contracts | Amount | Unrealized | ||||||||||||||
to Buy or | Covered by | Appreciation | ||||||||||||||
to Sell | Currency | Contracts | Expiration | (Depreciation) | ||||||||||||
Buy | AUD | 2,156,000 | 04/10 | $ | 39,666 | |||||||||||
Buy | BRL | 2,539,292 | 04/10 | (23,615 | ) | |||||||||||
Sell | BRL | 2,539,292 | 04/10 | (4,241 | ) | |||||||||||
Buy | BRL | 2,539,292 | 06/10 | 3,444 | ||||||||||||
Sell | CAD | 288,000 | 04/10 | (7,355 | ) | |||||||||||
Buy | CNY | 2,732,816 | 08/10 | (5,101 | ) | |||||||||||
Buy | CNY | 1,714,535 | 11/10 | (6,501 | ) | |||||||||||
Sell | DKK | 4,741,000 | 05/10 | 7,637 | ||||||||||||
Buy | EUR | 100,000 | 04/10 | (3,962 | ) | |||||||||||
Sell | EUR | 4,442,000 | 04/10 | 69,548 | ||||||||||||
Sell | GBP | 634,000 | 06/10 | (4,885 | ) | |||||||||||
Buy | IDR | 2,318,605,000 | 10/10 | 15,231 | ||||||||||||
Buy | JPY | 7,599,701 | 04/10 | 10 | ||||||||||||
Sell | JPY | 29,323,000 | 04/10 | (42 | ) | |||||||||||
Sell | JPY | 70,673,701 | 04/10 | 21,177 | ||||||||||||
Buy | KRW | 26,920,289 | 07/10 | 964 | ||||||||||||
Buy | KRW | 237,320,000 | 08/10 | 9,181 | ||||||||||||
Buy | KRW | 591,012,461 | 11/10 | 9,663 | ||||||||||||
Buy | MXN | 3,268,540 | 04/10 | 9,612 | ||||||||||||
Sell | MXN | 3,268,540 | 04/10 | (5,781 | ) | |||||||||||
Buy | MXN | 3,220,000 | 09/10 | 5,325 | ||||||||||||
Buy | MYR | 509,136 | 06/10 | 8,898 | ||||||||||||
Buy | MYR | 532,669 | 10/10 | 5,633 | ||||||||||||
Buy | PHP | 11,525,000 | 04/10 | 4,584 | ||||||||||||
Sell | PHP | 8,725,000 | 04/10 | (1,572 | ) | |||||||||||
Sell | PHP | 2,800,000 | 04/10 | 41 | ||||||||||||
Buy | PHP | 2,800,000 | 11/10 | (170 | ) | |||||||||||
Buy | PHP | 8,725,000 | 11/10 | 863 | ||||||||||||
Buy | SGD | 30,000 | 06/10 | (198 | ) | |||||||||||
Buy | SGD | 365,455 | 06/10 | 3,084 | ||||||||||||
Buy | SGD | 51,595 | 09/10 | 198 | ||||||||||||
Buy | TWD | 1,374,455 | 06/10 | 351 | ||||||||||||
Buy | TWD | 46,245 | 10/10 | (3 | ) | |||||||||||
Buy | TWD | 869,000 | 10/10 | 184 | ||||||||||||
$ | 151,868 | |||||||||||||||
(h) | Transactions in written options for the year ended March 31, 2010 were as follows: |
Number of | Notional Amount | |||||||||||
Contracts | in $ | Premium | ||||||||||
Outstanding, March 31, 2009 | 28 | 4,500,000 | $ | 34,346 | ||||||||
Call Options Written | 393 | 51,600,000 | 384,551 | |||||||||
Put Options Written | 506 | 100,800,000 | 1,126,335 | |||||||||
Call Options Expired | (322 | ) | (18,400,000 | ) | (180,527 | ) | ||||||
Put Options Expired | (204 | ) | (52,300,000 | ) | (528,294 | ) | ||||||
Outstanding, March 31, 2010 | 401 | 86,200,000 | $ | 836,411 | ||||||||
(i) | Premiums received and value of written options outstanding as of March 31, 2010 were as follows: |
Credit Default Swaptions Buy Protection (1)
Exercise | Expiration | Counter- | Notional | |||||||||||||||||||||
Description | Rate | Date | party | Amount | Premium | Value | ||||||||||||||||||
Call - OTC ITRAXX Europe Index | 0.700 | % | 06/16/10 | MSC | $ | 1,000,000 | $ | 2,267 | $ | (3,416 | ) | |||||||||||||
Call - OTC Dow Jones CDX IG13 Index | 0.800 | % | 06/16/10 | BRC | 1,000,000 | 1,700 | (2,507 | ) | ||||||||||||||||
$ | 3,967 | $ | (5,923 | ) | ||||||||||||||||||||
Credit Default Swaptions Sell Protection (2)
Exercise | Expiration | Counter- | Notional | |||||||||||||||||||||
Description | Rate | Date | party | Amount | Premium | Value | ||||||||||||||||||
Put - OTC Dow Jones CDX IG13 Index | 1.300 | % | 06/16/10 | BRC | $ | 1,000,000 | $ | 2,400 | $ | (521 | ) | |||||||||||||
Put - OTC ITRAXX Europe Index | 1.400 | % | 06/16/10 | MSC | 1,000,000 | 2,605 | (580 | ) | ||||||||||||||||
$ | 5,005 | $ | (1,101 | ) | ||||||||||||||||||||
See Notes to Financial Statements | C-39 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
March 31, 2010
PL MANAGED BOND FUND
Schedule of Investments (Continued)
March 31, 2010
(1) | If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. The counterparty is only obligated if the swaption is exercised. | ||
(2) | If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. The Fund is only obligated if the swaption is exercised. |
Foreign Currencies Options
Exercise | Expiration | Counter- | Notional | |||||||||||||||||||||
Description | Price | Date | party | Amount | Premium | Value | ||||||||||||||||||
Put - OTC Japanese yen versus U.S. dollar ∆ | JPY 88.00 | 04/20/10 | CIT | $ | 2,300,000 | $ | 19,849 | $ | (23,301 | ) | ||||||||||||||
Call - OTC Japanese yen versus U.S. dollar ∆ | 94.00 | 04/20/10 | CIT | 2,300,000 | 10,580 | (23,071 | ) | |||||||||||||||||
$ | 30,429 | $ | (46,372 | ) | ||||||||||||||||||||
Inflation Floor/Cap Options
Strike | Exercise | Expiration | Counter- | Notional | |||||||||||||||||||||||||||
Description | Index | Index | Date | party | Amount | Premium | Value | ||||||||||||||||||||||||
Floor - OTC U.S. CPI Urban Consumers NSA | 215.95 | Maximum of (1-(Index Final/Index Initial)) or $0 | 03/12/20 | CIT | $ | 1,200,000 | $ | 10,320 | $ | (9,872 | ) | ||||||||||||||||||||
Interest Rate Swaptions
Pay/Receive | ||||||||||||||||||||||||||||
Floating Rate | ||||||||||||||||||||||||||||
Based on 3-Month | Exercise | Expiration | Counter- | Notional | ||||||||||||||||||||||||
Description | USD-LIBOR | Rate | Date | party | Amount | Premium | Value | |||||||||||||||||||||
Call - OTC 7-Year Interest Rate Swap | Receive | 2.750 | % | 04/19/10 | BNP | $ | 3,300,000 | $ | 5,940 | $ | (53 | ) | ||||||||||||||||
Call - OTC 7-Year Interest Rate Swap | Receive | 2.750 | % | 04/19/10 | CSF | 300,000 | 1,375 | (5 | ) | |||||||||||||||||||
Call - OTC 7-Year Interest Rate Swap | Receive | 2.750 | % | 04/19/10 | DUB | 100,000 | 430 | (2 | ) | |||||||||||||||||||
Call - OTC 10-Year Interest Rate Swap | Receive | 3.250 | % | 04/19/10 | BNP | 400,000 | 3,640 | (6 | ) | |||||||||||||||||||
Call - OTC 10-Year Interest Rate Swap | Receive | 3.250 | % | 04/19/10 | BRC | 1,000,000 | 13,000 | (14 | ) | |||||||||||||||||||
Call - OTC 10-Year Interest Rate Swap | Receive | 3.250 | % | 04/19/10 | CSF | 700,000 | 7,070 | (9 | ) | |||||||||||||||||||
Call - OTC 10-Year Interest Rate Swap | Receive | 3.250 | % | 04/19/10 | DUB | 3,500,000 | 36,423 | (47 | ) | |||||||||||||||||||
Call - OTC 10-Year Interest Rate Swap | Receive | 3.250 | % | 04/19/10 | MSC | 400,000 | 3,600 | (5 | ) | |||||||||||||||||||
Call - OTC 10-Year Interest Rate Swap | Receive | 3.500 | % | 04/19/10 | RBS | 300,000 | 1,166 | (131 | ) | |||||||||||||||||||
Put - OTC 7-Year Interest Rate Swap | Pay | 4.000 | % | 04/19/10 | BNP | 3,300,000 | 26,103 | (68 | ) | |||||||||||||||||||
Put - OTC 7-Year Interest Rate Swap | Pay | 4.000 | % | 04/19/10 | CSF | 100,000 | 1,230 | (2 | ) | |||||||||||||||||||
Put - OTC 7-Year Interest Rate Swap | Pay | 4.000 | % | 04/19/10 | DUB | 100,000 | 870 | (2 | ) | |||||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 4.250 | % | 04/19/10 | BNP | 4,300,000 | 90,955 | (1,328 | ) | |||||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 4.250 | % | 04/19/10 | BRC | 1,000,000 | 7,950 | (309 | ) | |||||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 4.250 | % | 04/19/10 | CIT | 1,000,000 | 24,600 | (309 | ) | |||||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 4.250 | % | 04/19/10 | CSF | 700,000 | 16,800 | (216 | ) | |||||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 4.250 | % | 04/19/10 | DUB | 3,200,000 | 41,960 | (989 | ) | |||||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 4.250 | % | 04/19/10 | RBS | 5,900,000 | 62,042 | (1,823 | ) | |||||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 5.000 | % | 04/19/10 | DUB | 300,000 | 1,485 | — | ||||||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 5.000 | % | 04/19/10 | RBS | 1,000,000 | 10,325 | — | ||||||||||||||||||||
Call - OTC 10-Year Interest Rate Swap | Receive | 3.500 | % | 06/14/10 | MSC | 1,600,000 | 6,000 | (4,845 | ) | |||||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 4.500 | % | 06/14/10 | MSC | 1,600,000 | 3,680 | (3,838 | ) | |||||||||||||||||||
Call - OTC 10-Year Interest Rate Swap | Receive | 3.250 | % | 08/31/10 | BRC | 5,500,000 | 14,875 | (15,733 | ) | |||||||||||||||||||
Call - OTC 10-Year Interest Rate Swap | Receive | 3.250 | % | 08/31/10 | CIT | 4,300,000 | 27,950 | (12,301 | ) | |||||||||||||||||||
Call - OTC 10-Year Interest Rate Swap | Receive | 3.250 | % | 08/31/10 | DUB | 500,000 | 2,200 | (1,430 | ) | |||||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 4.750 | % | 08/31/10 | BRC | 5,500,000 | 25,637 | (29,281 | ) | |||||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 4.750 | % | 08/31/10 | CIT | 4,300,000 | 43,107 | (22,893 | ) | |||||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 4.750 | % | 08/31/10 | DUB | 500,000 | 5,550 | (2,662 | ) | |||||||||||||||||||
Put - OTC 7-Year Interest Rate Swap | Pay | 6.000 | % | 08/31/10 | RBS | 2,000,000 | 15,446 | (157 | ) | |||||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 6.000 | % | 08/31/10 | RBS | 3,000,000 | 23,650 | (722 | ) | |||||||||||||||||||
Call - OTC 10-Year Interest Rate Swap | Receive | 3.250 | % | 10/29/10 | MSC | 2,100,000 | 14,070 | (8,859 | ) | |||||||||||||||||||
Call - OTC 10-Year Interest Rate Swap | Receive | 3.250 | % | 10/29/10 | RBS | 4,900,000 | 24,010 | (20,670 | ) | |||||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 5.000 | % | 10/29/10 | MSC | 2,100,000 | 16,800 | (13,258 | ) | |||||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 5.000 | % | 10/29/10 | RBS | 4,900,000 | 48,510 | (30,934 | ) | |||||||||||||||||||
Put - OTC 5-Year Interest Rate Swap | Pay | 4.000 | % | 12/01/10 | RBS | 1,500,000 | 9,675 | (10,001 | ) | |||||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 10.000 | % | 07/10/12 | MSC | 1,200,000 | 7,230 | (1,297 | ) | |||||||||||||||||||
$ | 645,354 | $ | (184,199 | ) | ||||||||||||||||||||||||
See Notes to Financial Statements | C-40 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
March 31, 2010
PL MANAGED BOND FUND
Schedule of Investments (Continued)
March 31, 2010
Options on Exchange-Traded Futures Contracts
Exercise | Expiration | Counter- | Number of | |||||||||||||||||||||
Description | Price | Date | party | Contracts | Premium | Value | ||||||||||||||||||
Put - CBOT 10-Year U.S. Treasury Note Futures (05/10) | $ | 114.00 | 04/23/10 | CIT | 48 | $ | 16,974 | $ | (6,000 | ) | ||||||||||||||
Call - CBOT 10-Year U.S. Treasury Note Futures (05/10) | 119.00 | 04/23/10 | CIT | 48 | 18,849 | (2,250 | ) | |||||||||||||||||
Put - CBOT 30 Year U.S. Treasury Bond Futures (06/10) | 111.00 | 05/21/10 | MER | 4 | 3,459 | (1,000 | ) | |||||||||||||||||
Put - CBOT 10-Year U.S. Treasury Note Futures (06/10) | 114.00 | 05/21/10 | CIT | 18 | 5,674 | (6,188 | ) | |||||||||||||||||
Put - CBOT 10-Year U.S. Treasury Note Futures (06/10) | 115.00 | 05/21/10 | JPM | 15 | 6,587 | (8,672 | ) | |||||||||||||||||
Call - CBOT 10-Year U.S. Treasury Note Futures (06/10) | 119.00 | 05/21/10 | CIT | 18 | 4,830 | (3,094 | ) | |||||||||||||||||
Call - CBOT 10-Year U.S. Treasury Note Futures (06/10) | 119.00 | 05/21/10 | JPM | 15 | 3,900 | (2,578 | ) | |||||||||||||||||
Call - CBOT 30-Year U.S. Treasury Bond Futures (06/10) | 119.00 | 05/21/10 | MER | 4 | 3,678 | (2,000 | ) | |||||||||||||||||
Put - CME Eurodollar Futures (09/10) | 97.38 | 09/10/10 | CIT | 231 | 77,385 | (62,081 | ) | |||||||||||||||||
$ | 141,336 | $ | (93,863 | ) | ||||||||||||||||||||
Total Written Options | $ | 836,411 | $ | (341,330 | ) | |||||||||||||||||||
(j) | Swap agreements outstanding as of March 31, 2010 were as follows: |
Credit Default Swaps on Corporate and Sovereign Issues - Buy Protection (1)
Upfront | ||||||||||||||||||||||||||||||||
Fixed Deal | Implied Credit | Premiums | ||||||||||||||||||||||||||||||
Pay | Expiration | Counter- | Spread at | Notional | Paid | Unrealized | ||||||||||||||||||||||||||
Referenced Obligation | Rate | Date | party | 03/31/10 (3) | Amount (4) | Value (5) | (Received) | Appreciation | ||||||||||||||||||||||||
Health Care Properties 5.950% due 09/15/11 | (0.460 | %) | 09/20/11 | JPM | 0.863 | % | $ | 900,000 | $ | 5,219 | $ | — | $ | 5,219 | ||||||||||||||||||
Credit Default Swaps on Corporate and Sovereign Issues - Sell Protection (2)
Upfront | ||||||||||||||||||||||||||||||||
Fixed Deal | Implied Credit | Premiums | Unrealized | |||||||||||||||||||||||||||||
Receive | Expiration | Counter- | Spread at | Notional | Paid | Appreciation | ||||||||||||||||||||||||||
Referenced Obligation | Rate | Date | party | 03/31/10 (3) | Amount (4) | Value (5) | (Received) | (Depreciation) | ||||||||||||||||||||||||
General Electric Capital Corp 6.000% due 06/15/12 | 1.500 | % | 09/20/11 | DUB | 1.063 | % | $ | 100,000 | $ | 684 | $ | — | $ | 684 | ||||||||||||||||||
General Electric Capital Corp 5.625% due 09/15/17 | 4.000 | % | 12/20/13 | CIT | 1.363 | % | 200,000 | 18,844 | — | 18,844 | ||||||||||||||||||||||
General Electric Capital Corp 5.625% due 09/15/17 | 4.230 | % | 12/20/13 | DUB | 1.363 | % | 200,000 | 20,481 | — | 20,481 | ||||||||||||||||||||||
General Electric Capital Corp 5.625% due 09/15/17 | 4.325 | % | 12/20/13 | CIT | 1.363 | % | 200,000 | 21,157 | — | 21,157 | ||||||||||||||||||||||
General Electric Capital Corp 6.000% due 06/15/12 | 4.400 | % | 12/20/13 | BRC | 1.363 | % | 200,000 | 21,707 | — | 21,707 | ||||||||||||||||||||||
General Electric Capital Corp 6.000% due 06/15/12 | 4.500 | % | 12/20/13 | BRC | 1.363 | % | 300,000 | 33,603 | — | 33,603 | ||||||||||||||||||||||
General Electric Capital Corp 6.000% due 06/15/12 | 4.700 | % | 12/20/13 | BRC | 1.363 | % | 400,000 | 47,651 | — | 47,651 | ||||||||||||||||||||||
General Electric Capital Corp 5.625% due 09/15/17 | 4.750 | % | 12/20/13 | DUB | 1.363 | % | 400,000 | 48,363 | — | 48,363 | ||||||||||||||||||||||
SLM Corp 5.125% due 08/27/12 | 5.000 | % | 12/20/13 | CIT | 3.315 | % | 400,000 | 23,308 | (57,000 | ) | 80,308 | |||||||||||||||||||||
American International Group 6.250% due 05/01/36 | 5.000 | % | 12/20/13 | DUB | 2.291 | % | 500,000 | 47,654 | (46,250 | ) | 93,904 | |||||||||||||||||||||
United Mexican States 7.500% due 04/08/33 | 1.000 | % | 03/20/15 | BRC | 1.139 | % | 400,000 | (2,478 | ) | (8,999 | ) | 6,521 | ||||||||||||||||||||
United Mexican States 7.500% due 04/08/33 | 1.000 | % | 03/20/15 | CIT | 1.139 | % | 400,000 | (2,479 | ) | (9,184 | ) | 6,705 | ||||||||||||||||||||
Japanese Government Bond 2.000% due 03/21/22 Δ | 1.000 | % | 03/20/15 | DUB | 0.607 | % | 1,000,000 | 18,871 | 11,616 | 7,255 | ||||||||||||||||||||||
United Mexican States 7.500% due 04/08/33 | 1.000 | % | 03/20/15 | DUB | 1.139 | % | 200,000 | (1,239 | ) | (4,592 | ) | 3,353 | ||||||||||||||||||||
United Kingdom GILT 4.250% due 06/07/32 Δ | 1.000 | % | 06/20/15 | GSC | 0.752 | % | 1,100,000 | 13,577 | 10,164 | 3,413 | ||||||||||||||||||||||
Reynolds American Inc 7.625% due 06/01/16 | 1.280 | % | 06/20/17 | DUB | 1.828 | % | 200,000 | (6,608 | ) | — | (6,608 | ) | ||||||||||||||||||||
$ | 303,096 | $ | (104,245 | ) | $ | 407,341 | ||||||||||||||||||||||||||
Credit Default Swaps on Credit Indices - Sell Protection (2)
Upfront | ||||||||||||||||||||||||||||
Fixed Deal | Premiums | Unrealized | ||||||||||||||||||||||||||
Receive | Expiration | Counter- | Notional | Paid | Appreciation | |||||||||||||||||||||||
Referenced Obligation | Rate | Date | party | Amount (4) | Value (5) | (Received) | (Depreciation) | |||||||||||||||||||||
Dow Jones CDX NA HY-8 5Y | 0.483 | % | 06/20/12 | BRC | $ | 770,352 | $ | (243 | ) | $ | — | $ | (243 | ) | ||||||||||||||
Dow Jones CDX NA HY-9 5Y Δ | 2.080 | % | 12/20/12 | MER | 1,444,065 | 55,351 | — | 55,351 | ||||||||||||||||||||
Dow Jones CDX NA IG-9 10Y | 0.548 | % | 12/20/17 | GSC | 96,450 | 1,397 | — | 1,397 | ||||||||||||||||||||
$ | 56,505 | $ | — | $ | 56,505 | |||||||||||||||||||||||
Total Credit Default Swaps | $ | 364,820 | $ | (104,245 | ) | $ | 469,065 | |||||||||||||||||||||
(1) | If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. | |
(2) | If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. | |
(3) | Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues or sovereign issues of an emerging country as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity or obligation. |
See Notes to Financial Statements | C-41 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
March 31, 2010
PL MANAGED BOND FUND
Schedule of Investments (Continued)
March 31, 2010
(4) | The maximum potential amount the Fund could be required to make as a seller of credit protection or receive as a buyer of protection if a credit event occurs as defined under the terms of that particular swap agreement. |
(5) | The quoted market prices and resulting values for credit default swap agreements on asset-backed securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement been closed/sold as of the period end. Increasing market values in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement. |
Interest Rate Swaps
Upfront | ||||||||||||||||||||||||||||||||
Premiums | Unrealized | |||||||||||||||||||||||||||||||
Counter- | Pay/Receive | Fixed | Expiration | Notional | Paid | Appreciation | ||||||||||||||||||||||||||
Floating Rate Index | party | Floating Rate | Rate | Date | Amount | Value | (Received) | (Depreciation) | ||||||||||||||||||||||||
6-Month GBP-LIBOR | RBS | Pay | 5.000 | % | 09/15/10 | GBP | 300,000 | $ | 9,234 | $ | (9,462 | ) | $ | 18,696 | ||||||||||||||||||
3-Month USD-LIBOR | MSC | Pay | 3.000 | % | 12/16/10 | $ | 8,800,000 | 231,788 | 184,495 | 47,293 | ||||||||||||||||||||||
6-Month EUR-LIBOR | BNP | Pay | 4.500 | % | 03/18/11 | EUR | 5,200,000 | 237,375 | 8,277 | 229,098 | ||||||||||||||||||||||
3-Month Australian Bank Bill | CIT | Pay | 4.500 | % | 06/15/11 | AUD | 100,000 | (566 | ) | 115 | (681 | ) | ||||||||||||||||||||
3-Month Australian Bank Bill | DUB | Pay | 4.500 | % | 06/15/11 | 4,720,000 | (26,717 | ) | 4,828 | (31,545 | ) | |||||||||||||||||||||
3-Month Australian Bank Bill | MSC | Pay | 4.500 | % | 06/15/11 | 3,600,000 | (22,795 | ) | 3,423 | (26,218 | ) | |||||||||||||||||||||
6-Month Australian Bank Bill | CSF | Pay | 6.250 | % | 09/15/11 | 1,200,000 | 17,975 | 129 | 17,846 | |||||||||||||||||||||||
6-Month EUR-LIBOR Δ | DUB | Pay | 4.070 | % | 09/16/11 | EUR | 11,200,000 | 857,389 | (6,931 | ) | 864,320 | |||||||||||||||||||||
BRL — CDI Compounded | MSC | Pay | 10.115 | % | 01/02/12 | BRL | 8,900,000 | (197,145 | ) | (199,363 | ) | 2,218 | ||||||||||||||||||||
BRL — CDI Compounded | GSC | Pay | 10.150 | % | 01/02/12 | 6,100,000 | (130,776 | ) | (23,780 | ) | (106,996 | ) | ||||||||||||||||||||
BRL — CDI Compounded | UBS | Pay | 10.575 | % | 01/02/12 | 1,200,000 | (14,436 | ) | (31,680 | ) | 17,244 | |||||||||||||||||||||
BRL — CDI Compounded | BRC | Pay | 10.600 | % | 01/02/12 | 1,500,000 | (1,902 | ) | — | (1,902 | ) | |||||||||||||||||||||
BRL — CDI Compounded | HSB | Pay | 10.610 | % | 01/02/12 | 1,400,000 | (1,610 | ) | — | (1,610 | ) | |||||||||||||||||||||
BRL — CDI Compounded | BRC | Pay | 10.680 | % | 01/02/12 | 5,600,000 | (56,277 | ) | (65,566 | ) | 9,289 | |||||||||||||||||||||
BRL — CDI Compounded | MER | Pay | 12.540 | % | 01/02/12 | 4,000,000 | 88,146 | (20,439 | ) | 108,585 | ||||||||||||||||||||||
BRL — CDI Compounded | MSC | Pay | 12.540 | % | 01/02/12 | 900,000 | 19,833 | (6,048 | ) | 25,881 | ||||||||||||||||||||||
BRL — CDI Compounded | UBS | Pay | 12.540 | % | 01/02/12 | 3,000,000 | 66,109 | (14,783 | ) | 80,892 | ||||||||||||||||||||||
BRL — CDI Compounded | HSB | Pay | 14.765 | % | 01/02/12 | 100,000 | 4,831 | 667 | 4,164 | |||||||||||||||||||||||
BRL — CDI Compounded | MER | Pay | 14.765 | % | 01/02/12 | 200,000 | 9,662 | 1,029 | 8,633 | |||||||||||||||||||||||
6-Month Australian Bank Bill | UBS | Pay | 6.000 | % | 09/15/12 | AUD | 6,100,000 | 36,612 | — | 36,612 | ||||||||||||||||||||||
BRL — CDI Compounded Δ | GSC | Pay | 11.890 | % | 01/02/13 | BRL | 200,000 | 67 | 314 | (247 | ) | |||||||||||||||||||||
BRL — CDI Compounded Δ | HSB | Pay | 11.890 | % | 01/02/13 | 100,000 | 33 | 126 | (93 | ) | ||||||||||||||||||||||
BRL — CDI Compounded Δ | UBS | Pay | 12.250 | % | 01/02/14 | 600,000 | 1,933 | 1,667 | 266 | |||||||||||||||||||||||
BRL — CDI Compounded Δ | HSB | Pay | 12.540 | % | 01/02/14 | 100,000 | 716 | 648 | 68 | |||||||||||||||||||||||
BRL — CDI Compounded Δ | GSC | Pay | 12.650 | % | 01/02/14 | 1,000,000 | 8,581 | 8,321 | 260 | |||||||||||||||||||||||
6-Month EUR-LIBOR | BNP | Pay | 4.500 | % | 03/18/14 | EUR | 300,000 | 37,459 | (4,508 | ) | 41,967 | |||||||||||||||||||||
6-Month EUR-LIBOR | CSF | Pay | 4.500 | % | 03/18/14 | 2,100,000 | 262,217 | (9,168 | ) | 271,385 | ||||||||||||||||||||||
3-Month USD-LIBOR | RBS | Pay | 4.000 | % | 12/16/14 | $ | 2,300,000 | 169,127 | 49,165 | 119,962 | ||||||||||||||||||||||
28-Day Mexico Interbank TIIE Banxico Δ | HSB | Pay | 7.330 | % | 01/28/15 | MXN | 7,700,000 | 7,536 | 3,402 | 4,134 | ||||||||||||||||||||||
6-Month EUR-LIBOR | GSC | Pay | 2.500 | % | 06/16/15 | EUR | 500,000 | (128 | ) | (1,327 | ) | 1,199 | ||||||||||||||||||||
6-Month EUR-LIBOR | BRC | Pay | 3.000 | % | 06/16/15 | 3,700,000 | 116,255 | 12,576 | 103,679 | |||||||||||||||||||||||
6-Month EUR-LIBOR | DUB | Pay | 3.000 | % | 06/16/15 | 3,200,000 | 100,546 | 2,069 | 98,477 | |||||||||||||||||||||||
6-Month EUR-LIBOR | GSC | Pay | 3.000 | % | 06/16/15 | 2,200,000 | 69,125 | 2,418 | 66,707 | |||||||||||||||||||||||
3-Month USD-LIBOR Δ | MSC | Pay | 4.000 | % | 06/16/15 | $ | 3,900,000 | 201,295 | 208,263 | (6,968 | ) | |||||||||||||||||||||
3-Month USD-LIBOR Δ | RBS | Pay | 4.000 | % | 06/16/15 | 3,200,000 | 165,165 | 180,000 | (14,835 | ) | ||||||||||||||||||||||
28-Day Mexico Interbank TIIE Banxico | GSC | Pay | 8.170 | % | 11/04/16 | MXN | 1,200,000 | 3,679 | 1,757 | 1,922 | ||||||||||||||||||||||
3-Month Canadian Bank Bill | RBS | Pay | 5.700 | % | 12/18/24 | CAD | 2,100,000 | 5,562 | (1,439 | ) | 7,001 | |||||||||||||||||||||
3-Month USD-LIBOR | DUB | Pay | 5.000 | % | 12/15/35 | $ | 1,800,000 | (49,367 | ) | (37,080 | ) | (12,287 | ) | |||||||||||||||||||
Total Interest Rate Swaps | $ | 2,226,531 | $ | 242,115 | $ | 1,984,416 | ||||||||||||||||||||||||||
Total Swap Agreements | $ | 2,591,351 | $ | 137,870 | $ | 2,453,481 | ||||||||||||||||||||||||||
(k) | As of March 31, 2010, securities with total aggregate values of $9,194,554 and $79,933 were fully or partially segregated with the broker(s)/custodian as collateral for open futures and swap contracts, respectively. In addition, $214,276 in cash was segregated as collateral for open futures contracts. |
See Notes to Financial Statements | C-42 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
March 31, 2010
PL MANAGED BOND FUND
Schedule of Investments (Continued)
March 31, 2010
(l) | Fair Value Measurements |
The following is a summary of the Fund’s holdings as categorized under the three-tier hierarchy of inputs used in valuing the Fund’s assets and liabilities (See Note 10 in Note to Financial Statements) as of March 31, 2010: |
Level 2 | Level 3 | |||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||
March 31, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||
Assets | ||||||||||||||||||
Convertible Preferred Stocks (1) | $ | 3,019,201 | $ | 3,019,201 | $ | — | $ | — | ||||||||||
Preferred Stocks (1) | 10,160 | 10,160 | — | — | ||||||||||||||
Corporate Bonds & Notes | 71,759,798 | — | 71,759,798 | — | ||||||||||||||
Mortgage-Backed Securities | 59,729,388 | — | 59,729,388 | — | ||||||||||||||
Asset-Backed Securities | 1,150,555 | — | 1,150,555 | — | ||||||||||||||
U.S. Government Agency Issues | 3,005,588 | — | 3,005,588 | — | ||||||||||||||
U.S. Treasury Obligations | 7,364,507 | — | 7,364,507 | — | ||||||||||||||
Foreign Government Bonds & Notes | 2,977,149 | — | 2,977,149 | — | ||||||||||||||
Municipal Bonds | 3,745,971 | — | 3,745,971 | — | ||||||||||||||
Short-Term Investments | 95,532,980 | 1,066,555 | 94,466,425 | — | ||||||||||||||
Investments in Other Financial Instruments (2) | 3,787,068 | 465,657 | 3,321,411 | — | ||||||||||||||
252,082,365 | 4,561,573 | 247,520,792 | — | |||||||||||||||
Liabilities | ||||||||||||||||||
Investments in Other Financial Instruments (2) | (1,048,991 | ) | (223,332 | ) | (808,763 | ) | (16,896 | ) | ||||||||||
Total | $ | 251,033,374 | $ | 4,338,241 | $ | 246,712,029 | $ | (16,896 | ) | |||||||||
The following is a reconciliation of investments for significant unobservable inputs (Level 3) used in valuing the Fund’s assets and liabilities (See Note 10 in Notes to Financial Statements) for the year ended March 31, 2010:
Change in Net | ||||||||||||||||||||||||||
Unrealized | ||||||||||||||||||||||||||
Appreciation | ||||||||||||||||||||||||||
Total Change | Transfers | on Level 3 | ||||||||||||||||||||||||
Value, | Net | in Net | In and/ | Holdings Held at | ||||||||||||||||||||||
Beginning | Purchases | Total Net | Unrealized | or Out of | Value, | the End of Year, | ||||||||||||||||||||
of Year | (Sales) | Realized Gains | Depreciation | Level 3 | End of Year | if Applicable | ||||||||||||||||||||
Investments in Other Financial Instruments (2) | $ | 1,003,023 | $ | (1,022,018 | ) | $ | 1,002,577 | $ | (1,000,478 | ) | $— | $ | (16,896 | ) | $ | 2,396 | ||||||||||
(1) | For equity securities categorized in a single level, refer to the schedule of investments for further industry breakout. | |
(2) | Investments in other financial instruments may include open futures contracts, swap contracts, options, and forward foreign currency contracts. |
See Notes to Financial Statements | C-43 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments
March 31, 2010
PL INFLATION MANAGED FUND
Schedule of Investments
March 31, 2010
Shares | Value | |||||||
CONVERTIBLE PREFERRED STOCKS - 0.1% | ||||||||
Financials - 0.1% | ||||||||
Wells Fargo & Co 7.500% | 100 | $ | 97,700 | |||||
Total Convertible Preferred Stocks (Cost $100,000) | 97,700 | |||||||
Principal | ||||||||
Amount | ||||||||
CORPORATE BONDS & NOTES - 16.3% | ||||||||
Consumer Discretionary - 0.6% | ||||||||
Pulte Homes Inc | ||||||||
7.875% due 08/01/11 | $ | 500,000 | 528,750 | |||||
Starwood Hotels & Resorts Worldwide Inc | ||||||||
6.250% due 02/15/13 | 300,000 | 316,500 | ||||||
845,250 | ||||||||
Consumer Staples - 0.3% | ||||||||
New Albertsons Inc | ||||||||
7.500% due 02/15/11 | 500,000 | 520,000 | ||||||
Financials - 15.1% | ||||||||
American Express Bank FSB | ||||||||
0.377% due 05/29/12 § | 300,000 | 295,918 | ||||||
0.380% due 06/12/12 § | 500,000 | 493,300 | ||||||
American Express Credit Corp | ||||||||
5.875% due 05/02/13 | 200,000 | 216,799 | ||||||
7.300% due 08/20/13 | 210,000 | 235,885 | ||||||
American International Group Inc | ||||||||
8.175% due 05/15/58 § | 200,000 | 170,500 | ||||||
Bank of America Corp | ||||||||
0.743% due 06/11/12 § | GBP 400,000 | 585,262 | ||||||
Bank of Nova Scotia (Canada) | ||||||||
3.400% due 01/22/15 | $ | 300,000 | 302,279 | |||||
Citigroup Funding Inc | ||||||||
1.299% due 05/07/10 § | 800,000 | 800,675 | ||||||
5.700% due 06/30/11 | 1,000,000 | 1,030,070 | ||||||
Countrywide Financial Corp | ||||||||
5.800% due 06/07/12 | 400,000 | 425,418 | ||||||
Dexia Credit Local NY (France) | ||||||||
0.652% due 03/05/13 ~ § | 4,400,000 | 4,407,185 | ||||||
Ford Motor Credit Co LLC | ||||||||
7.250% due 10/25/11 | 500,000 | 517,134 | ||||||
9.750% due 09/15/10 | 1,200,000 | 1,228,906 | ||||||
HBOS PLC (United Kingdom) | ||||||||
6.750% due 05/21/18 ~ | 300,000 | 276,058 | ||||||
ING Bank NV (Netherlands) | ||||||||
3.900% due 03/19/14 ~ | 4,700,000 | 4,937,867 | ||||||
Macquarie Bank Ltd (Australia) | ||||||||
3.300% due 07/17/14 ~ | 700,000 | 710,130 | ||||||
Merrill Lynch & Co Inc | ||||||||
1.385% due 09/27/12 § | EUR 1,000,000 | 1,318,231 | ||||||
5.450% due 07/15/14 | $ | 300,000 | 314,055 | |||||
Metropolitan Life Global Funding I | ||||||||
2.154% due 06/10/11 ~ § | 700,000 | 711,763 | ||||||
5.125% due 04/10/13 ~ | 100,000 | 107,435 | ||||||
New York Life Global Funding | ||||||||
4.650% due 05/09/13 ~ | 300,000 | 321,406 | ||||||
SLM Corp | ||||||||
3.125% due 09/17/12 | EUR 700,000 | 892,231 | ||||||
The Royal Bank of Scotland PLC (United Kingdom) | ||||||||
4.875% due 03/16/15 | 400,000 | 400,302 | ||||||
UBS AG (Switzerland) | ||||||||
1.352% due 02/23/12 § | 1,100,000 | 1,105,849 | ||||||
Wachovia Corp | ||||||||
2.019% due 05/01/13 § | 700,000 | 720,796 | ||||||
22,525,454 | ||||||||
Industrials - 0.3% | ||||||||
International Lease Finance Corp | ||||||||
5.350% due 03/01/12 | 500,000 | 490,061 | ||||||
Total Corporate Bonds & Notes (Cost $24,253,980) | 24,380,765 | |||||||
MORTGAGE-BACKED SECURITIES - 7.3% | ||||||||
Collateralized Mortgage Obligations - Commercial - 0.3% | ||||||||
JPMorgan Chase Commercial Mortgage Securities Corp | ||||||||
5.336% due 05/15/47 “ | 110,000 | 107,412 | ||||||
Morgan Stanley Capital I | ||||||||
6.076% due 06/11/49 “ § | 100,000 | 98,927 | ||||||
Wachovia Bank Commercial Mortgage Trust | ||||||||
5.418% due 01/15/45 “ § | 210,000 | 213,120 | ||||||
419,459 | ||||||||
Collateralized Mortgage Obligations - Residential - 7.0% | ||||||||
Bear Stearns Adjustable Rate Mortgage Trust | ||||||||
2.530% due 08/25/35 “ § | 37,801 | 35,311 | ||||||
2.560% due 08/25/35 “ § | 66,012 | 61,539 | ||||||
2.760% due 03/25/35 “ § | 134,417 | 125,860 | ||||||
2.934% due 03/25/35 “ § | 42,149 | 39,940 | ||||||
3.539% due 01/25/35 “ § | 3,716,498 | 3,363,741 | ||||||
Citigroup Mortgage Loan Trust Inc | ||||||||
2.510% due 08/25/35 “ § | 58,203 | 52,110 | ||||||
4.248% due 08/25/35 “ § | 50,852 | 45,047 | ||||||
Countrywide Home Loan Mortgage Pass-Through Trust | ||||||||
0.586% due 06/25/35 “ ~ § | 41,445 | 36,572 | ||||||
4.642% due 01/19/34 “ § | 311,545 | 283,967 | ||||||
Fannie Mae | ||||||||
0.596% due 07/25/37 “ § | 1,549,137 | 1,540,108 | ||||||
0.626% due 07/25/37 “ § | 1,542,822 | 1,535,854 | ||||||
0.686% due 05/25/36 “ § | 868,654 | 866,589 | ||||||
0.691% due 02/25/37 “ § | 292,274 | 287,184 | ||||||
GSR Mortgage Loan Trust | ||||||||
2.948% due 09/25/35 “ § | 97,635 | 90,158 | ||||||
MLCC Mortgage Investors Inc | ||||||||
2.312% due 12/25/34 “ § | 278,923 | 258,705 | ||||||
New York Mortgage Trust Inc | ||||||||
5.562% due 05/25/36 “ § | 700,000 | 512,778 | ||||||
Residential Accredit Loans Inc | ||||||||
0.426% due 06/25/46 “ § | 190,774 | 71,028 | ||||||
Structured Asset Mortgage Investments Inc | ||||||||
0.456% due 05/25/46 “ § | 163,302 | 78,457 | ||||||
Wells Fargo Mortgage-Backed Securities Trust | ||||||||
4.482% due 10/25/35 “ § | 1,400,000 | 1,162,324 | ||||||
10,447,272 | ||||||||
Total Mortgage-Backed Securities (Cost $10,869,198) | 10,866,731 | |||||||
See Notes to Financial Statements | C-44 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
March 31, 2010
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
March 31, 2010
Principal | ||||||||
Amount | Value | |||||||
ASSET-BACKED SECURITIES - 2.7% | ||||||||
Ally Auto Receivables Trust | ||||||||
1.320% due 03/15/12 “ ~ | $ | 1,100,000 | $ | 1,104,796 | ||||
AMMC CLO (Cayman) | ||||||||
0.506% due 08/08/17 “ ~ § | 200,000 | 181,694 | ||||||
ARES CLO Funds (Cayman) | ||||||||
0.483% due 03/12/18 “ ~ § | 494,669 | 469,649 | ||||||
First Franklin Mortgage Loan Asset-Backed Certificates | ||||||||
0.296% due 11/25/36 “ § | 118,621 | 115,982 | ||||||
Ford Credit Auto Owner Trust | ||||||||
1.210% due 01/15/12 “ | 1,000,000 | 1,003,462 | ||||||
Freddie Mac Structured Pass-Through Securities | ||||||||
0.526% due 09/25/31 “ § | 3,005 | 2,903 | ||||||
Race Point CLO (Cayman) | ||||||||
0.800% due 05/15/15 “ ~ § | 1,167,347 | 1,111,898 | ||||||
Wells Fargo Home Equity Trust | ||||||||
0.496% due 12/25/35 “ ~ § | 44,315 | 43,885 | ||||||
Total Asset-Backed Securities (Cost $4,034,992) | 4,034,269 | |||||||
U.S. TREASURY OBLIGATIONS - 82.2% | ||||||||
U.S. Treasury Inflation Protected Securities - 82.0% | ||||||||
0.625% due 04/15/13 ^ | 1,947,614 | 1,986,414 | ||||||
0.875% due 04/15/10 ^ | 2,287,340 | 2,288,234 | ||||||
1.250% due 04/15/14 ^ | 1,740,409 | 1,800,780 | ||||||
1.375% due 07/15/18 ^ | 602,850 | 604,216 | ||||||
1.375% due 01/15/20 ^ | 3,707,141 | 3,639,371 | ||||||
1.625% due 01/15/15 ^ | 4,879,167 | 5,102,540 | ||||||
1.625% due 01/15/18 ^ | 413,684 | 423,735 | ||||||
1.750% due 01/15/28 ^ | 3,309,472 | 3,139,862 | ||||||
1.875% due 07/15/13 ^ | 1,179,670 | 1,249,252 | ||||||
1.875% due 07/15/15 ^ | 9,468,541 | 10,028,757 | ||||||
1.875% due 07/15/19 ^ | 4,058,920 | 4,187,981 | ||||||
2.000% due 04/15/12 ^ | 1,388,036 | 1,454,727 | ||||||
2.000% due 01/15/14 ^ | 7,563,141 | 8,037,607 | ||||||
2.000% due 07/15/14 ^ | 1,149,430 | 1,223,874 | ||||||
2.000% due 01/15/16 ^ | 1,091,630 | 1,159,687 | ||||||
2.000% due 01/15/26 ^ | 3,384,053 | 3,374,537 | ||||||
2.125% due 01/15/19 ^ | 5,954,271 | 6,281,291 | ||||||
2.125% due 02/15/40 ^ | 1,403,388 | 1,395,055 | ||||||
2.375% due 04/15/11 ^ | 7,532,111 | 7,779,341 | ||||||
2.375% due 01/15/17 ^ | 1,826,429 | 1,974,969 | ||||||
2.375% due 01/15/25 ^ | 5,321,861 | 5,580,471 | ||||||
2.375% due 01/15/27 ^ | 10,960,954 | 11,428,619 | ||||||
2.500% due 07/15/16 ^ | 6,007,960 | 6,572,144 | ||||||
2.500% due 01/15/29 ^ | 5,247,580 | 5,559,564 | ||||||
2.625% due 07/15/17 ^ | 6,376,879 | 7,017,060 | ||||||
3.000% due 07/15/12 ^ | 4,729,704 | 5,099,212 | ||||||
3.375% due 01/15/12 ^ | 244,038 | 261,350 | ||||||
3.375% due 04/15/32 ^ | 183,096 | 222,662 | ||||||
3.500% due 01/15/11 ^ | 124,487 | 128,961 | ||||||
3.625% due 04/15/28 ^ | 2,103,141 | 2,568,296 | ||||||
3.875% due 04/15/29 ^ | 8,633,847 | 10,959,325 | ||||||
122,529,894 | ||||||||
U.S. Treasury Notes - 0.2% | ||||||||
2.375% due 02/28/15 | 400,000 | 397,345 | ||||||
Total U.S. Treasury Obligations (Cost $119,492,186) | 122,927,239 | |||||||
FOREIGN GOVERNMENT BONDS & NOTES - 3.9% | ||||||||
Australian Government Bond (Australia) | ||||||||
3.000% due 09/20/25 | AUD 600,000 | 570,647 | ||||||
4.000% due 08/20/15 | 300,000 | 450,388 | ||||||
4.000% due 08/20/20 | 200,000 | 288,586 | ||||||
Bundesrepublik Deutschland (Germany) | ||||||||
3.750% due 01/04/15 | EUR 700,000 | 1,015,580 | ||||||
4.250% due 07/04/18 | 200,000 | 296,490 | ||||||
Canadian Government Bond (Canada) | ||||||||
2.000% due 12/01/14 | CAD 500,000 | 475,124 | ||||||
2.500% due 06/01/15 | 2,300,000 | 2,220,718 | ||||||
4.250% due 12/01/21 | 277,046 | 359,127 | ||||||
France Government (France) | ||||||||
1.300% due 07/25/19 | EUR 100,168 | 138,779 | ||||||
Total Foreign Government Bonds & Notes (Cost $5,874,016) | 5,815,439 | |||||||
MUNICIPAL BONDS - 0.1% | ||||||||
Tobacco Settlement Finance Authority of WV ‘A’ | ||||||||
7.467% due 06/01/47 | $ | 95,000 | 75,534 | |||||
Tobacco Settlement Financing Corp of RI ‘A’ | ||||||||
6.000% due 06/01/23 | 75,000 | 76,003 | ||||||
Total Municipal Bonds (Cost $157,316) | 151,537 | |||||||
SHORT-TERM INVESTMENTS - 1.5% | ||||||||
U.S. Treasury Bills - 0.1% | ||||||||
0.208% due 08/26/10 ‡ | 1,000 | 999 | ||||||
0.229% due 08/26/10 ‡ | 150,000 | 149,884 | ||||||
150,883 | ||||||||
Shares | ||||||||
Money Market Fund - 0.7% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 995,439 | 995,439 | ||||||
Principal | ||||||||
Amount | ||||||||
Repurchase Agreement - 0.7% | ||||||||
Credit Suisse Securities (USA) LLC | ||||||||
0.010% due 04/01/10 (Dated 03/31/10, repurchase price of $1,100,000; collateralized by U.S. Treasury Note: 2.500% due 03/31/15 value $1,125,709) | $ | 1,100,000 | 1,100,000 | |||||
Total Short-Term Investments (Cost $2,246,329) | 2,246,322 | |||||||
TOTAL INVESTMENTS - 114.1% (Cost $167,028,017) | 170,520,002 | |||||||
OTHER ASSETS & LIABILITIES, NET - (14.1%) | (21,066,843 | ) | ||||||
NET ASSETS - 100.0% | $ | 149,453,159 | ||||||
See Notes to Financial Statements | C-45 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
March 31, 2010
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
March 31, 2010
Notes to Schedule of Investments
(a) | As of March 31, 2010, the Fund was diversified as a percentage of net assets as follows: |
U.S. Treasury Obligations | 82.2 | % | ||
Corporate Bonds & Notes | 16.3 | % | ||
Mortgage-Backed Securities | 7.3 | % | ||
Foreign Government Bonds & Notes | 3.9 | % | ||
Asset-Backed Securities | 2.7 | % | ||
Short-Term Investments | 1.5 | % | ||
Convertible Preferred Stocks | 0.1 | % | ||
Municipal Bonds | 0.1 | % | ||
114.1 | % | |||
Other Assets & Liabilities, Net | (14.1 | %) | ||
100.0 | % | |||
(b) | As of March 31, 2010, the Fund’s Standard & Poor’s quality ratings on its investments as a percentage of total fixed income investments were as follows: |
AAA / U.S. Government & Agency Issues | 86.0 | % | ||
AA | 4.6 | % | ||
A | 3.6 | % | ||
BBB | 2.4 | % | ||
BB | 0.8 | % | ||
B | 1.3 | % | ||
NA | 1.3 | % | ||
100.0 | % | |||
(c) | Short-term securities reflect either the stated coupon rate or the annualized effective yield on the date of purchase for discounted securities. | |
(d) | Less than 0.1% of the Fund’s net assets were reported illiquid by the portfolio manager under the Funds’ policy. | |
(e) | Open futures contracts outstanding as of March 31, 2010 were as follows: |
Unrealized | ||||||||||||
Number of | Notional | Appreciation | ||||||||||
Long Futures Outstanding | Contracts | Amount | (Depreciation) | |||||||||
3-Month Euribor (06/10) | 12 | EUR 12,000,000 | $ | 16,681 | ||||||||
3-Month Euribor (12/10) | 10 | 10,000,000 | 1,182 | |||||||||
Euro-Bund 10-Year Notes (06/10) | 12 | 1,200,000 | 9,671 | |||||||||
Euro-Bund 10-Year Notes (06/10) | 10 | 1,000,000 | (1,351 | ) | ||||||||
Eurodollar (06/10) | 53 | $ | 53,000,000 | 123,737 | ||||||||
Eurodollar (09/10) | 30 | 30,000,000 | 3,675 | |||||||||
Eurodollar (06/11) | 19 | 19,000,000 | 3,600 | |||||||||
Eurodollar (06/11) | 15 | 15,000,000 | (1,688 | ) | ||||||||
United Kingdom 90-Day LIBOR Sterling Interest Rate (12/10) | 8 | GBP 4,000,000 | 1,897 | |||||||||
$ | 157,404 | |||||||||||
(f) | Forward foreign currency contracts outstanding as of March 31, 2010 were as follows: |
Principal | ||||||||||||||||
Contracts | Amount | Unrealized | ||||||||||||||
to Buy or | Covered by | Appreciation | ||||||||||||||
to Sell | Currency | Contracts | Expiration | (Depreciation) | ||||||||||||
Sell | AUD | 410,000 | 04/10 | $ | (7,543 | ) | ||||||||||
Buy | BRL | 112,008 | 04/10 | 187 | ||||||||||||
Sell | BRL | 112,008 | 04/10 | 1,042 | ||||||||||||
Sell | BRL | 112,008 | 06/10 | (152 | ) | |||||||||||
Buy | CAD | 46,191 | 04/10 | 1,786 | ||||||||||||
Sell | CAD | 31,000 | 04/10 | 92 | ||||||||||||
Sell | CAD | 3,110,000 | 04/10 | (39,319 | ) | |||||||||||
Sell | CHF | 85,000 | 05/10 | (182 | ) | |||||||||||
Buy | CNY | 2,330,216 | 06/10 | (2,454 | ) | |||||||||||
Sell | CNY | 675,580 | 06/10 | 1,010 | ||||||||||||
Buy | CNY | 2,548,929 | 11/10 | (9,668 | ) | |||||||||||
Buy | CNY | 663,980 | 01/11 | (2,079 | ) | |||||||||||
Buy | EUR | 2,247,000 | 04/10 | 42,908 | ||||||||||||
Sell | EUR | 5,357,000 | 04/10 | 201,657 | ||||||||||||
Buy | GBP | 318,000 | 04/10 | — | ||||||||||||
Sell | GBP | 318,000 | 06/10 | 188 | ||||||||||||
Sell | GBP | 378,000 | 06/10 | (2,912 | ) | |||||||||||
Sell | JPY | 55,157,020 | 04/10 | 7,424 | ||||||||||||
Sell | JPY | 18,620,900 | 05/10 | — | ||||||||||||
Buy | KRW | 432,069,828 | 07/10 | 17,354 | ||||||||||||
Buy | KRW | 180,007,000 | 08/10 | 4,316 | ||||||||||||
Buy | KRW | 825,868,172 | 11/10 | 13,844 | ||||||||||||
Buy | KRW | 113,350,000 | 11/10 | (674 | ) | |||||||||||
Sell | KRW | 227,900,000 | 11/10 | 297 | ||||||||||||
Buy | MXN | 14,857,370 | 04/10 | 85,453 | ||||||||||||
Sell | MXN | 14,857,370 | 04/10 | (25,513 | ) | |||||||||||
Buy | MXN | 14,857,370 | 09/10 | 24,569 | ||||||||||||
Buy | SGD | 1,676,088 | 06/10 | 12,305 | ||||||||||||
Sell | SGD | 559,720 | 06/10 | 54 | ||||||||||||
$ | 323,990 | |||||||||||||||
See Notes to Financial Statements | C-46 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
March 31, 2010
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
March 31, 2010
(g) | Transactions in written options for the year ended March 31, 2010 were as follows: |
Notional | ||||||||||||
Number of | Amount | |||||||||||
Contracts | in $ | Premium | ||||||||||
Outstanding, March 31, 2009 | 23 | 9,500,000 | $ | 135,225 | ||||||||
Call Options Written | 36 | 26,300,000 | 186,395 | |||||||||
Put Options Written | 52 | 54,900,000 | 414,600 | |||||||||
Call Options Closed | — | (2,900,000 | ) | (75,305 | ) | |||||||
Put Options Closed | — | (1,300,000 | ) | (12,773 | ) | |||||||
Call Options Expired | (37 | ) | (5,700,000 | ) | (38,114 | ) | ||||||
Put Options Expired | (56 | ) | (21,700,000 | ) | (164,767 | ) | ||||||
Outstanding, March 31, 2010 | 18 | 59,100,000 | $ | 445,261 | ||||||||
(h) | Premiums received and value of written options outstanding as of March 31, 2010 were as follows: |
Foreign Currency Options
Exercise | Expiration | Counter- | Notional | |||||||||||||||||||||
Description | Price | Date | party | Amount | Premium | Value | ||||||||||||||||||
Put - OTC Japanese yen vs. U.S. dollar Δ | JPY 88.00 | 04/20/10 | CIT | $ | 1,500,000 | $ | 12,945 | $ | (15,196 | ) | ||||||||||||||
Call - OTC Japanese yen vs. U.S. dollar Δ | 94.00 | 04/20/10 | CIT | 1,500,000 | 6,900 | (15,047 | ) | |||||||||||||||||
$ | 19,845 | $ | (30,243 | ) | ||||||||||||||||||||
Inflation Floor/Cap Options
Strike | Exercise | Expiration | Counter- | Notional | ||||||||||||||||||||||
Description | Index | Index | Date | party | Amount | Premium | Value | |||||||||||||||||||
Cap - OTC U.S. CPI urban Consumers NSA Δ | 215.97 | Maximum of ((Index Final/Index Initial - 1) -2.500%) or $0 | 12/07/10 | RBS | $ | 1,200,000 | $ | 4,200 | $ | (1,887 | ) | |||||||||||||||
Floor - OTC U.S. CPI urban Consumers NSA | 215.97 | Maximum of (-1.000% - (Index Final/Index Initial - 1)) or $0 | 12/14/10 | BNP | 1,200,000 | 5,160 | (424 | ) | ||||||||||||||||||
Floor - OTC U.S. CPI urban Consumers NSA | 215.95 | Maximum of (1-(Index Final/Index Initial)) or $0 | 03/20/20 | CIT | 1,200,000 | 10,320 | (9,872 | ) | ||||||||||||||||||
$ | 19,680 | $ | (12,183 | ) | ||||||||||||||||||||||
Interest Rate Swaptions
Pay/Receive | ||||||||||||||||||||||||||
Floating Rate | ||||||||||||||||||||||||||
Based on 3-Month | Exercise | Expiration | Counter- | Notional | ||||||||||||||||||||||
Description | USD-LIBOR | Rate | Date | party | Amount | Premium | Value | |||||||||||||||||||
Call - OTC 7-Year Interest Rate Swap | Receive | 2.750 | % | 04/19/10 | DUB | $ | 2,400,000 | $ | 11,040 | $ | (39 | ) | ||||||||||||||
Call - OTC 10-Year Interest Rate Swap | Receive | 3.250 | % | 04/19/10 | BNP | 2,000,000 | 19,200 | (27 | ) | |||||||||||||||||
Call - OTC 10-Year Interest Rate Swap | Receive | 3.250 | % | 04/19/10 | BRC | 1,000,000 | 13,000 | (14 | ) | |||||||||||||||||
Call - OTC 10-Year Interest Rate Swap | Receive | 3.250 | % | 04/19/10 | DUB | 3,200,000 | 37,520 | (43 | ) | |||||||||||||||||
Put - OTC 7-Year Interest Rate Swap | Pay | 4.000 | % | 04/19/10 | DUB | 2,400,000 | 12,960 | (50 | ) | |||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 4.250 | % | 04/19/10 | BRC | 1,000,000 | 7,950 | (309 | ) | |||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 4.250 | % | 04/19/10 | DUB | 3,200,000 | 29,945 | (988 | ) | |||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 5.000 | % | 04/19/10 | BNP | 2,000,000 | 9,700 | — | ||||||||||||||||||
Call - OTC 10-Year Interest Rate Swap | Receive | 3.500 | % | 06/14/10 | BRC | 1,000,000 | 6,100 | (3,028 | ) | |||||||||||||||||
Call - OTC 10-Year Interest Rate Swap | Receive | 3.500 | % | 06/14/10 | CIT | 2,500,000 | 25,000 | (7,570 | ) | |||||||||||||||||
Call - OTC 10-Year Interest Rate Swap | Receive | 3.500 | % | 06/14/10 | MSC | 3,800,000 | 18,240 | (11,506 | ) | |||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 4.500 | % | 06/14/10 | BRC | 1,000,000 | 2,450 | (2,399 | ) | |||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 4.500 | % | 06/14/10 | CIT | 2,500,000 | 24,625 | (5,998 | ) | |||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 4.500 | % | 06/14/10 | MSC | 3,800,000 | 9,690 | (9,116 | ) | |||||||||||||||||
Put - OTC 5-Year Interest Rate Swap | Pay | 5.000 | % | 06/15/10 | BNP | 1,000,000 | 9,175 | (5 | ) | |||||||||||||||||
Put - OTC 5-Year Interest Rate Swap | Pay | 5.000 | % | 06/15/10 | BRC | 3,000,000 | 28,770 | (14 | ) | |||||||||||||||||
Put - OTC 5-Year Interest Rate Swap | Pay | 5.800 | % | 06/28/10 | CSF | 1,000,000 | 5,650 | — | ||||||||||||||||||
Call - OTC 10-Year Interest Rate Swap | Receive | 3.250 | % | 08/31/10 | BRC | 2,200,000 | 6,270 | (6,293 | ) | |||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 4.750 | % | 08/31/10 | BRC | 2,200,000 | 9,515 | (11,712 | ) | |||||||||||||||||
Put - OTC 5-Year Interest Rate Swap | Pay | 5.500 | % | 08/31/10 | DUB | 1,000,000 | 10,774 | (89 | ) | |||||||||||||||||
Put - OTC 7-Year Interest Rate Swap | Pay | 6.000 | % | 08/31/10 | RBS | 2,900,000 | 22,959 | (228 | ) | |||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 6.000 | % | 08/31/10 | RBS | 600,000 | 5,925 | (144 | ) | |||||||||||||||||
Put - OTC 7-Year Interest Rate Swap | Pay | 5.365 | % | 09/20/10 | RBS | 2,000,000 | 39,845 | (1,295 | ) | |||||||||||||||||
Put - OTC 5-Year Interest Rate Swap | Pay | 4.000 | % | 12/01/10 | RBS | 4,100,000 | 26,445 | (27,337 | ) | |||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 10.000 | % | 07/10/12 | MSC | 200,000 | 1,320 | (216 | ) | |||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 10.000 | % | 07/10/12 | RBS | 500,000 | 3,400 | (541 | ) | |||||||||||||||||
$ | 397,468 | $ | (88,961 | ) | ||||||||||||||||||||||
See Notes to Financial Statements | C-47 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
March 31, 2010
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
March 31, 2010
Options on Exchange-Traded Futures Contracts
Exercise | Expiration | Counter- | Number of | |||||||||||||||||||||
Description | Price | Date | party | Contracts | Premium | Value | ||||||||||||||||||
Put - CBOT U.S. Treasury Note Futures (05/10) | $ | 114.00 | 04/23/10 | MER | 7 | $ | 3,342 | $ | (328 | ) | ||||||||||||||
Call - CBOT U.S. Treasury Note Futures (05/10) | 119.00 | 04/23/10 | MER | 7 | 3,311 | (875 | ) | |||||||||||||||||
Put - CBOT U.S.Treasury Note Futures (06/10) | 114.00 | 05/21/10 | MER | 2 | 948 | (344 | ) | |||||||||||||||||
Call - CBOT U.S.Treasury Note Futures (06/10) | 119.00 | 05/21/10 | MER | 2 | 667 | (687 | ) | |||||||||||||||||
$ | 8,268 | $ | (2,234 | ) | ||||||||||||||||||||
Total Written Options | $ | 445,261 | $ | (133,621 | ) | |||||||||||||||||||
(i) | Swap agreements outstanding as of March 31, 2010 were as follows: |
Credit Default Swaps on Corporate and Sovereign Issues - Buy Protection (1)
Fixed Deal | Implied Credit | Upfront | ||||||||||||||||||||||||||||||
Pay | Expiration | Counter- | Spread at | Notional | Premiums Paid | Unrealized | ||||||||||||||||||||||||||
Referenced Obligation | Rate | Date | party | 03/31/10 (3) | Amount (4) | Value (5) | (Received) | Depreciation | ||||||||||||||||||||||||
New Albertsons Inc 7.250% due 05/01/13 | (1.000 | %) | 03/20/11 | DUB | 1.899 | % | $ | 500,000 | $ | 4,202 | $ | 5,035 | $ | (833 | ) | |||||||||||||||||
Pulte Homes Inc 5.250% due 01/15/14 | (1.000 | %) | 09/20/11 | DUB | 1.069 | % | 500,000 | 369 | 1,857 | (1,488 | ) | |||||||||||||||||||||
Starwood Hotels & Resorts Worldwide Inc 6.750% due 05/15/18 | (1.000 | %) | 03/20/13 | DUB | 1.087 | % | 300,000 | 672 | 5,065 | (4,393 | ) | |||||||||||||||||||||
$ | 5,243 | $ | 11,957 | $ | (6,714 | ) | ||||||||||||||||||||||||||
Credit Default Swaps on Corporate and Sovereign Issues - Sell Protection (2)
Fixed Deal | Implied Credit | Upfront | Unrealized | |||||||||||||||||||||||||||||
Receive | Expiration | Counter- | Spread at | Notional | Premiums Paid | Appreciation | ||||||||||||||||||||||||||
Referenced Obligation | Rate | Date | party | 03/31/10 (3) | Amount (4) | Value (5) | (Received) | (Depreciation) | ||||||||||||||||||||||||
General Electric Capital Corp 5.625% due 09/15/17 Δ | 1.000 | % | 03/20/11 | MSC | 0.929 | % | $ | 1,600,000 | $ | 1,549 | $ | (13,156 | ) | $ | 14,705 | |||||||||||||||||
American International Group Inc 6.250% due 05/01/36 | 1.950 | % | 03/20/13 | DUB | 2.008 | % | 1,200,000 | (1,333 | ) | — (1,333 | ) | |||||||||||||||||||||
$ | 216 | $ | (13,156 | ) | $ | 13,372 | ||||||||||||||||||||||||||
Total Credit Default Swaps | $ | 5,459 | $ | (1,199 | ) | $ | 6,658 | |||||||||||||||||||||||||
(1) | If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. | |
(2) | If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. | |
(3) | Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues or sovereign issues of an emerging country as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity or obligation. | |
(4) | The maximum potential amount the Fund could be required to make as a seller of credit protection or receive as a buyer of protection if a credit event occurs as defined under the terms of that particular swap agreement. | |
(5) | The quoted market prices and resulting values for credit default swap agreements on asset-backed securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement been closed/sold as of the period end. Increasing market values in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement. |
See Notes to Financial Statements | C-48 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
March 31, 2010
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
March 31, 2010
Interest Rate Swaps
Upfront | ||||||||||||||||||||||||||||||||
Premiums | Unrealized | |||||||||||||||||||||||||||||||
Counter- | Pay/Receive | Fixed | Expiration | Notional | Paid | Appreciation | ||||||||||||||||||||||||||
Floating Rate Index | party | Floating Rate | Rate | Date | Amount | Value | (Received) | (Depreciation) | ||||||||||||||||||||||||
France CPI Excluding Tobacco | BRC | Pay | 2.103 | % | 10/15/10 | EUR 500,000 | $ | 23,013 | $ | (416 | ) | $ | 23,429 | |||||||||||||||||||
France CPI Excluding Tobacco Δ | JPM | Pay | 2.261 | % | 07/14/11 | 500,000 | 29,440 | — | 29,440 | |||||||||||||||||||||||
France CPI Excluding Tobacco | JPM | Pay | 2.028 | % | 10/15/11 | 200,000 | 8,268 | — | 8,268 | |||||||||||||||||||||||
BRL - CDI Compounded | MSC | Pay | 10.115 | % | 01/02/12 | BRL 1,300,000 | (28,796 | ) | (18,939 | ) | (9,857 | ) | ||||||||||||||||||||
BRL - CDI Compounded | BRC | Pay | 10.680 | % | 01/02/12 | 800,000 | (8,040 | ) | (6,967 | ) | (1,073 | ) | ||||||||||||||||||||
BRL - CDI Compounded | GSC | Pay | 11.670 | % | 01/02/12 | 200,000 | 2,190 | 1,620 | 570 | |||||||||||||||||||||||
BRL - CDI Compounded | HSB | Pay | 14.765 | % | 01/02/12 | 2,300,000 | 111,109 | 15,333 | 95,776 | |||||||||||||||||||||||
BRL - CDI Compounded | MER | Pay | 14.765 | % | 01/02/12 | 100,000 | 4,831 | 191 | 4,640 | |||||||||||||||||||||||
BRL - CDI Compounded Δ | GSC | Pay | 11.890 | % | 01/02/13 | 3,500,000 | 1,170 | 2,160 | (990 | ) | ||||||||||||||||||||||
BRL - CDI Compounded Δ | HSB | Pay | 11.890 | % | 01/02/13 | 1,400,000 | 468 | 1,943 | (1,475 | ) | ||||||||||||||||||||||
BRL - CDI Compounded Δ | MSC | Pay | 11.980 | % | 01/02/13 | 900,000 | 1,024 | — | 1,024 | |||||||||||||||||||||||
BRL - CDI Compounded Δ | BRC | Pay | 12.285 | % | 01/02/13 | 800,000 | 3,938 | 2,511 | 1,427 | |||||||||||||||||||||||
3-Month USD-LIBOR Δ | RBS | Pay | 4.000 | % | 06/16/15 | $ | 1,800,000 | 92,905 | 101,700 | (8,795 | ) | |||||||||||||||||||||
Total Interest Rate Swaps | $ | 241,520 | $ | 99,136 | $ | 142,384 | ||||||||||||||||||||||||||
Total Swap Agreements | $ | 246,979 | $ | 97,937 | $ | 149,042 | ||||||||||||||||||||||||||
(j) | As of March 31, 2010, securities with the total aggregate values of $999 and $149,884 were fully or partially segregated with the broker(s)/custodian as collateral for open futures and swap contracts. | |
(k) | Fair Value Measurements | |
The following is a summary of the Fund’s holdings as categorized under the three-tier hierarchy of inputs used in valuing the Fund’s assets and liabilities (See Note 10 in Notes to Financial Statements) as of March 31, 2010: |
Level 2 | Level 3 | |||||||||||||||||
Total | Level 1 | Significant | Significant | |||||||||||||||
Value at | Quoted | Observable | Unobservable | |||||||||||||||
March 31, 2010 | Price | Inputs | Inputs | |||||||||||||||
Assets | ||||||||||||||||||
Convertible Preferred Stocks (1) | $ | 97,700 | $ | 97,700 | $ | — | $ | — | ||||||||||
Corporate Bonds & Notes | 24,380,765 | — | 24,380,765 | — | ||||||||||||||
Mortgage-Backed Securities | 10,866,731 | — | 10,866,731 | — | ||||||||||||||
Asset-Backed Securities | 4,034,269 | — | 2,271,028 | 1,763,241 | ||||||||||||||
U.S. Treasury Obligations | 122,927,239 | — | 122,927,239 | — | ||||||||||||||
Foreign Government Bonds & Notes | 5,815,439 | — | 5,815,439 | — | ||||||||||||||
Municipal Bonds | 151,537 | — | 151,537 | — | ||||||||||||||
Short-Term Investments | 2,246,322 | 995,439 | 1,250,883 | — | ||||||||||||||
Investments in Other Financial Instruments (2) | 860,077 | 160,443 | 699,634 | — | ||||||||||||||
171,380,079 | 1,253,582 | 168,363,256 | 1,763,241 | |||||||||||||||
Liabilities | ||||||||||||||||||
Investments in Other Financial Instruments (2) | (265,325 | ) | (5,273 | ) | (247,869 | ) | (12,183 | ) | ||||||||||
Total | $ | 171,114,754 | $ | 1,248,309 | $ | 168,115,387 | $ | 1,751,058 | ||||||||||
The following is a reconciliation of investments for significant unobservable inputs (Level 3) used in valuing the Fund’s assets and liabilities (see Note 10 in Notes to Financial Statements) for the year ended March 31, 2010:
Change in Net | ||||||||||||||||||||||||||||
Unrealized | ||||||||||||||||||||||||||||
Appreciation | ||||||||||||||||||||||||||||
Total Change | Transfers | on Level 3 | ||||||||||||||||||||||||||
Value, | Net | in Net | In and/ | Holdings Held at | ||||||||||||||||||||||||
Beginning | Purchases | Total Net | Unrealized | or Out of | Value, | the End of Year, | ||||||||||||||||||||||
of Year | (Sales) | Realized Gains | Depreciation | Level 3 | End of Year | if Applicable | ||||||||||||||||||||||
Asset-Backed Securities | $ | — | $ | 1,766,272 | $ | 5,189 | $ | (8,220 | ) | $ | — | $ | 1,763,241 | $ | (8,220 | ) | ||||||||||||
Investments in Other Financial Instruments (2) | 246,309 | (238,203 | ) | 224,379 | (183,947 | ) | (60,721 | ) | (12,183 | ) | 7,497 | |||||||||||||||||
$ | 246,309 | $ | 1,528,069 | $ | 229,568 | $ | (192,167 | ) | $ | (60,721 | ) | $ | 1,751,058 | $ | (723 | ) | ||||||||||||
(1) | For equity securities categorized in a single level, refer to the schedule of investments for further industry breakout. | |
(2) | Investments in other financial instruments may include open futures contracts, swap contracts, options, and forward foreign currency contracts. |
See Notes to Financial Statements | C-49 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL LARGE-CAP GROWTH FUND
Schedule of Investments
March 31, 2010
PL LARGE-CAP GROWTH FUND
Schedule of Investments
March 31, 2010
Shares | Value | |||||||
COMMON STOCKS - 98.7% | ||||||||
Consumer Discretionary - 16.4% | ||||||||
Amazon.com Inc * | 15,000 | $ | 2,035,950 | |||||
CarMax Inc * | 14,500 | 364,240 | ||||||
Comcast Corp ‘A’ | 26,200 | 493,084 | ||||||
DeVry Inc | 8,900 | 580,280 | ||||||
International Game Technology | 72,900 | 1,345,005 | ||||||
McDonald’s Corp | 30,500 | 2,034,960 | ||||||
priceline.com Inc * | 2,800 | 714,000 | ||||||
The Sherwin-Williams Co | 19,600 | 1,326,528 | ||||||
Time Warner Cable Inc | 20,800 | 1,108,848 | ||||||
10,002,895 | ||||||||
Consumer Staples - 6.1% | ||||||||
Colgate-Palmolive Co | 10,900 | 929,334 | ||||||
Kellogg Co | 25,300 | 1,351,779 | ||||||
The Procter & Gamble Co | 7,300 | 461,871 | ||||||
Wal-Mart Stores Inc | 17,700 | 984,120 | ||||||
3,727,104 | ||||||||
Energy - 4.3% | ||||||||
Baker Hughes Inc | 12,100 | 566,764 | ||||||
EOG Resources Inc | 7,200 | 669,168 | ||||||
Southwestern Energy Co * | 26,700 | 1,087,224 | ||||||
Suncor Energy Inc (Canada) | 9,900 | 322,146 | ||||||
2,645,302 | ||||||||
Financials - 8.8% | ||||||||
BlackRock Inc | 5,300 | 1,154,128 | ||||||
CME Group Inc | 4,200 | 1,327,662 | ||||||
IntercontinentalExchange Inc * | 10,000 | 1,121,800 | ||||||
JPMorgan Chase & Co | 24,700 | 1,105,325 | ||||||
MSCI Inc ‘A’ * | 19,000 | 685,900 | ||||||
5,394,815 | ||||||||
Health Care - 18.2% | ||||||||
Alcon Inc (Switzerland) | 6,400 | 1,033,984 | ||||||
Allergan Inc | 33,800 | 2,207,816 | ||||||
Amgen Inc * | 15,900 | 950,184 | ||||||
Covidien PLC (Ireland) | 37,800 | 1,900,584 | ||||||
Express Scripts Inc * | 15,400 | 1,567,104 | ||||||
Johnson & Johnson | 9,000 | 586,800 | ||||||
Medco Health Solutions Inc * | 12,800 | 826,368 | ||||||
Talecris Biotherapeutics Holdings Corp * | 38,107 | 759,092 | ||||||
Zimmer Holdings Inc * | 21,800 | 1,290,560 | ||||||
11,122,492 | ||||||||
Industrials - 10.8% | ||||||||
General Dynamics Corp | 9,100 | 702,520 | ||||||
Illinois Tool Works Inc | 20,900 | 989,824 | ||||||
Parker-Hannifin Corp | 14,800 | 958,152 | ||||||
Union Pacific Corp | 21,300 | 1,561,290 | ||||||
United Technologies Corp | 20,800 | 1,531,088 | ||||||
Verisk Analytics Inc ‘A’ * | 30,100 | 848,820 | ||||||
6,591,694 | ||||||||
Information Technology - 30.6% | ||||||||
Adobe Systems Inc * | 24,800 | 877,176 | ||||||
Apple Inc * | 17,800 | 4,181,754 | ||||||
Cisco Systems Inc * | 88,200 | 2,295,846 | ||||||
Google Inc ‘A’ * | 4,600 | 2,608,246 | ||||||
MasterCard Inc ‘A’ | 9,500 | 2,413,000 | ||||||
Oracle Corp | 50,100 | 1,287,069 | ||||||
QUALCOMM Inc | 51,900 | 2,179,281 | ||||||
Red Hat Inc * | 15,400 | 450,758 | ||||||
Visa Inc ‘A’ | 26,400 | 2,403,192 | ||||||
18,696,322 | ||||||||
Materials - 2.7% | ||||||||
Praxair Inc | 20,000 | 1,660,000 | ||||||
Telecommunication Services - 0.8% | ||||||||
American Tower Corp ‘A’ * | 11,200 | 477,232 | ||||||
Total Common Stocks (Cost $48,884,997) | 60,317,856 | |||||||
EXCHANGE-TRADED FUND - 0.5% | ||||||||
iShares Russell 1000 Growth Index Fund | 5,900 | 306,505 | ||||||
Total Exchange-Traded Fund (Cost $271,336) | 306,505 | |||||||
SHORT-TERM INVESTMENT - 1.3% | ||||||||
Money Market Fund - 1.3% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 763,389 | 763,389 | ||||||
Total Short-Term Investment (Cost $763,389) | 763,389 | |||||||
TOTAL INVESTMENTS - 100.5% (Cost $49,919,722) | 61,387,750 | |||||||
OTHER ASSETS & LIABILITIES, NET - (0.5%) | (281,643 | ) | ||||||
NET ASSETS - 100.0% | $ | 61,106,107 | ||||||
Notes to Schedule of Investments
(a) | As of March 31, 2010, the Fund was diversified as a percentage of net assets as follows: |
Information Technology | 30.6 | % | ||
Health Care | 18.2 | % | ||
Consumer Discretionary | 16.4 | % | ||
Industrials | 10.8 | % | ||
Financials | 8.8 | % | ||
Consumer Staples | 6.1 | % | ||
Energy | 4.3 | % | ||
Materials | 2.7 | % | ||
Short-Term Investment | 1.3 | % | ||
Telecommunication Services | 0.8 | % | ||
Exchange-Traded Fund | 0.5 | % | ||
100.5 | % | |||
Other Assets & Liabilities, Net | (0.5 | %) | ||
100.0 | % | |||
See Notes to Financial Statements | C-50 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL LARGE-CAP GROWTH FUND
Schedule of Investments (Continued)
March 31, 2010
PL LARGE-CAP GROWTH FUND
Schedule of Investments (Continued)
March 31, 2010
(b) | Fair Value Measurements | |
The following is a summary of the Fund’s holdings as categorized under the three-tier hierarchy of inputs used in valuing the Fund’s assets and liabilities (See Note 10 in Notes to Financial Statements) as of March 31, 2010: |
Level 2 | Level 3 | |||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||
March 31, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||
Assets | ||||||||||||||||||
Common Stocks (1) | $ | 60,317,856 | $ | 60,317,856 | $ | — | $ | — | ||||||||||
Exchange-Traded Fund | 306,505 | 306,505 | — | — | ||||||||||||||
Short-Term Investment | 763,389 | 763,389 | — | — | ||||||||||||||
Total | $ | 61,387,750 | $ | 61,387,750 | $ | — | $ | — | ||||||||||
(1) | For equity securities categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | C-51 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL COMSTOCK FUND
Schedule of Investments
March 31, 2010
PL COMSTOCK FUND
Schedule of Investments
March 31, 2010
Shares | Value | |||||||
COMMON STOCKS - 95.1% | ||||||||
Consumer Discretionary - 16.9% | ||||||||
Comcast Corp ‘A’ | 308,314 | $ | 5,802,469 | |||||
DIRECTV ‘A’ * | 40,306 | 1,362,746 | ||||||
J.C. Penney Co Inc | 25,800 | 829,986 | ||||||
Lowe’s Cos Inc | 54,300 | 1,316,232 | ||||||
Macy’s Inc | 29,673 | 645,981 | ||||||
News Corp ‘B’ | 112,800 | 1,918,728 | ||||||
Target Corp | 8,300 | 436,580 | ||||||
The Home Depot Inc | 47,800 | 1,546,330 | ||||||
Time Warner Cable Inc | 34,481 | 1,838,182 | ||||||
Time Warner Inc | 50,833 | 1,589,548 | ||||||
Viacom Inc ‘B’ * | 127,950 | 4,398,921 | ||||||
21,685,703 | ||||||||
Consumer Staples - 10.7% | ||||||||
Altria Group Inc | 56,300 | 1,155,276 | ||||||
CVS Caremark Corp | 47,700 | 1,743,912 | ||||||
Kraft Foods Inc ‘A’ | 78,002 | 2,358,780 | ||||||
PepsiCo Inc | 6,100 | 403,576 | ||||||
Philip Morris International Inc | 29,000 | 1,512,640 | ||||||
The Coca-Cola Co | 19,900 | 1,094,500 | ||||||
The Procter & Gamble Co | 9,200 | 582,084 | ||||||
Unilever NV ‘NY’ (Netherlands) | 63,600 | 1,918,176 | ||||||
Wal-Mart Stores Inc | 52,200 | 2,902,320 | ||||||
13,671,264 | ||||||||
Energy - 7.2% | ||||||||
BP PLC ADR (United Kingdom) | 16,400 | 935,948 | ||||||
Chevron Corp | 31,100 | 2,358,313 | ||||||
ConocoPhillips | 34,800 | 1,780,716 | ||||||
Halliburton Co | 66,600 | 2,006,658 | ||||||
Royal Dutch Shell PLC ADR (United Kingdom) | 22,100 | 1,278,706 | ||||||
Total SA ADR (France) | 16,100 | 934,122 | ||||||
9,294,463 | ||||||||
Financials - 24.8% | ||||||||
Aflac Inc | 13,600 | 738,344 | ||||||
Bank of America Corp | 187,201 | 3,341,538 | ||||||
Berkshire Hathaway Inc ‘B’ * | 15,500 | 1,259,685 | ||||||
Citigroup Inc * | 300,400 | 1,216,620 | ||||||
JPMorgan Chase & Co | 96,000 | 4,296,000 | ||||||
MetLife Inc | 45,900 | 1,989,306 | ||||||
Primerica Inc * | 1,000 | 15,000 | ||||||
State Street Corp | 11,900 | 537,166 | ||||||
The Bank of New York Mellon Corp | 92,339 | 2,851,428 | ||||||
The Chubb Corp | 129,180 | 6,697,983 | ||||||
The Goldman Sachs Group Inc | 6,800 | 1,160,284 | ||||||
The PNC Financial Services Group Inc | 30,200 | 1,802,940 | ||||||
The Travelers Cos Inc | 47,586 | 2,566,789 | ||||||
Torchmark Corp | 17,500 | 936,425 | ||||||
U.S. Bancorp | 39,400 | 1,019,672 | ||||||
Wells Fargo & Co | 42,200 | 1,313,264 | ||||||
31,742,444 | ||||||||
Health Care - 13.7% | ||||||||
Abbott Laboratories | 18,700 | 985,116 | ||||||
Boston Scientific Corp * | 63,800 | 460,636 | ||||||
Bristol-Myers Squibb Co | 99,004 | 2,643,407 | ||||||
Cardinal Health Inc | 66,800 | 2,406,804 | ||||||
Eli Lilly & Co | 42,300 | 1,532,106 | ||||||
GlaxoSmithKline PLC ADR (United Kingdom) | 17,000 | 654,840 | ||||||
Merck & Co Inc | 59,630 | 2,227,180 | ||||||
Pfizer Inc | 206,957 | 3,549,313 | ||||||
Roche Holding AG ADR (Switzerland) | 24,600 | 996,792 | ||||||
UnitedHealth Group Inc * | 33,500 | 1,094,445 | ||||||
WellPoint Inc * | 16,500 | 1,062,270 | ||||||
17,612,909 | ||||||||
Industrials - 4.1% | ||||||||
Emerson Electric Co | 18,600 | 936,324 | ||||||
General Electric Co | 108,000 | 1,965,600 | ||||||
Honeywell International Inc | 23,600 | 1,068,372 | ||||||
Ingersoll-Rand PLC (Ireland) | 35,100 | 1,223,937 | ||||||
5,194,233 | ||||||||
Information Technology - 10.3% | ||||||||
Accenture PLC ‘A’ (Ireland) | 17,100 | 717,345 | ||||||
Cisco Systems Inc * | 53,900 | 1,403,017 | ||||||
Dell Inc * | 70,367 | 1,056,209 | ||||||
eBay Inc * | 128,100 | 3,452,295 | ||||||
Hewlett-Packard Co | 26,300 | 1,397,845 | ||||||
Intel Corp | 93,200 | 2,074,632 | ||||||
KLA-Tencor Corp | 20,000 | 618,400 | ||||||
Microsoft Corp | 13,400 | 392,218 | ||||||
The Western Union Co | 20,900 | 354,464 | ||||||
Yahoo! Inc * | 104,300 | 1,724,079 | ||||||
13,190,504 | ||||||||
Materials - 3.7% | ||||||||
Alcoa Inc | 68,400 | 974,016 | ||||||
E.I. du Pont de Nemours & Co | 20,699 | 770,831 | ||||||
International Paper Co | 123,070 | 3,028,753 | ||||||
4,773,600 | ||||||||
Telecommunication Services - 3.4% | ||||||||
AT&T Inc | 51,100 | 1,320,424 | ||||||
Verizon Communications Inc | 62,800 | 1,948,056 | ||||||
Vodafone Group PLC ADR (United Kingdom) | 45,000 | 1,048,050 | ||||||
4,316,530 | ||||||||
Utilities - 0.3% | ||||||||
Sempra Energy | 8,000 | 399,200 | ||||||
Total Common Stocks (Cost $105,208,804) | 121,880,850 | |||||||
SHORT-TERM INVESTMENTS - 4.7% | ||||||||
Money Market Fund - 0.1% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 70,744 | 70,744 | ||||||
See Notes to Financial Statements | C-52 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL COMSTOCK FUND
Schedule of Investments (Continued)
March 31, 2010
PL COMSTOCK FUND
Schedule of Investments (Continued)
March 31, 2010
Principal | ||||||||
Amount | Value | |||||||
U.S. Government Agency Issue - 4.6% | ||||||||
Federal Home Loan Bank | ||||||||
0.001% due 04/01/10 | $ | 6,000,000 | $ | 6,000,000 | ||||
Total Short-Term Investments (Cost $6,070,744) | 6,070,744 | |||||||
TOTAL INVESTMENTS - 99.8% (Cost $111,279,548) | 127,951,594 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.2% | 217,525 | |||||||
NET ASSETS - 100.0% | $ | 128,169,119 | ||||||
Notes to Schedule of Investments
(a) | As of March 31, 2010, the Fund was diversified as a percentage of net assets as follows: |
Financials | 24.8 | % | ||
Consumer Discretionary | 16.9 | % | ||
Health Care | 13.7 | % | ||
Consumer Staples | 10.7 | % | ||
Information Technology | 10.3 | % | ||
Energy | 7.2 | % | ||
Short-Term Investments | 4.7 | % | ||
Industrials | 4.1 | % | ||
Materials | 3.7 | % | ||
Telecommunication Services | 3.4 | % | ||
Utilities | 0.3 | % | ||
99.8 | % | |||
Other Assets & Liabilities, Net | 0.2 | % | ||
100.0 | % | |||
(b) | Short-term securities reflect either the stated coupon rate or the annualized effective yield on the date of purchase for discounted securities. | |
(c) | Fair Value Measurements | |
The following is a summary of the Fund’s holdings as categorized under the three-tier hierarchy of inputs used in valuing the Fund’s assets and liabilities (See Note 10 in Notes to Financial Statements) as of March 31, 2010: |
Level 2 | Level 3 | |||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||
March 31, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||
Assets | ||||||||||||||||||
Common Stocks (1) | $ | 121,880,850 | $ | 121,880,850 | $ | — | $ | — | ||||||||||
Short-Term Investments | 6,070,744 | 70,744 | 6,000,000 | — | ||||||||||||||
Total | $ | 127,951,594 | $ | 121,951,594 | $ | 6,000,000 | $ | — | ||||||||||
(1) | For equity securities categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | C-53 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL MID-CAP GROWTH FUND
Schedule of Investments
March 31, 2010
PL MID-CAP GROWTH FUND
Schedule of Investments
March 31, 2010
Shares | Value | |||||||
CONVERTIBLE PREFERRED STOCKS - 1.5% | ||||||||
Health Care - 1.0% | ||||||||
Ironwood Pharmaceuticals Inc ‘H’ 8.000% * + Δ | 42,012 | $ | 520,529 | |||||
Industrials - 0.5% | ||||||||
Better Place LLC ‘B’ 8.000% * Δ | 98,662 | 295,986 | ||||||
Total Convertible Preferred Stocks (Cost $776,892) | 816,515 | |||||||
COMMON STOCKS - 97.9% | ||||||||
Consumer Discretionary - 26.6% | ||||||||
Ctrip.com International Ltd ADR (Cayman) * | 52,292 | 2,049,846 | ||||||
Discovery Communications Inc ‘C’ * | 18,938 | 556,967 | ||||||
Gafisa SA ADR (Brazil) | 41,932 | 576,146 | ||||||
Groupe Aeroplan Inc (Canada) | 56,886 | 596,501 | ||||||
Las Vegas Sands Corp * | 38,671 | 817,892 | ||||||
Li & Fung Ltd (Bermuda) + | 408,200 | 2,007,510 | ||||||
Morningstar Inc * | 20,525 | 987,047 | ||||||
Netflix Inc * | 8,195 | 604,299 | ||||||
New Oriental Education & Technology Group ADR (Cayman) * | 10,470 | 895,290 | ||||||
NVR Inc * | 1,061 | 770,817 | ||||||
priceline.com Inc * | 6,565 | 1,674,075 | ||||||
Sears Holdings Corp * | 5,543 | 601,027 | ||||||
Strayer Education Inc | 3,424 | 833,812 | ||||||
Wynn Resorts Ltd | 21,644 | 1,641,265 | ||||||
14,612,494 | ||||||||
Consumer Staples - 1.7% | ||||||||
Mead Johnson Nutrition Co | 17,969 | 934,927 | ||||||
Energy - 6.2% | ||||||||
Petrohawk Energy Corp * | 16,086 | 326,224 | ||||||
Range Resources Corp | 26,288 | 1,232,119 | ||||||
Ultra Petroleum Corp (Canada) * | 39,660 | 1,849,346 | ||||||
3,407,689 | ||||||||
Financials - 12.1% | ||||||||
Calamos Asset Management Inc ‘A’ | 26,095 | 374,202 | ||||||
CIT Group Inc * | 15,616 | 608,399 | ||||||
Greenhill & Co Inc | 11,957 | 981,550 | ||||||
IntercontinentalExchange Inc * | 7,349 | 824,411 | ||||||
Leucadia National Corp * | 43,885 | 1,088,787 | ||||||
Moody’s Corp | 12,703 | 377,914 | ||||||
MSCI Inc ‘A’ * | 46,026 | 1,661,539 | ||||||
T. Rowe Price Group Inc | 13,892 | 763,088 | ||||||
6,679,890 | ||||||||
Health Care - 9.3% | ||||||||
Allergan Inc | 10,175 | 664,631 | ||||||
Gen-Probe Inc * | 22,135 | 1,106,750 | ||||||
Illumina Inc * | 37,528 | 1,459,839 | ||||||
Intuitive Surgical Inc * | 2,318 | 806,965 | ||||||
Ironwood Pharmaceuticals Inc * Δ | 2,614 | 35,341 | ||||||
Techne Corp | 16,110 | 1,026,046 | ||||||
5,099,572 | ||||||||
Industrials - 13.1% | ||||||||
C.H. Robinson Worldwide Inc | 15,297 | 854,337 | ||||||
Covanta Holding Corp * | 26,405 | 439,907 | ||||||
Expeditors International of Washington Inc | 31,685 | 1,169,810 | ||||||
Fastenal Co | 18,589 | 892,086 | ||||||
IHS Inc ‘A’ * | 12,833 | 686,181 | ||||||
Intertek Group PLC (United Kingdom) + | 55,703 | 1,232,630 | ||||||
The Corporate Executive Board Co | 17,108 | 454,902 | ||||||
Verisk Analytics Inc ‘A’ * | 52,931 | 1,492,654 | ||||||
7,222,507 | ||||||||
Information Technology - 21.4% | ||||||||
Akamai Technologies Inc * | 36,237 | 1,138,204 | ||||||
Alibaba.com Ltd (Cayman) + | 403,600 | 810,618 | ||||||
Autodesk Inc * | 26,441 | 777,894 | ||||||
Baidu Inc ADR (Cayman) * | 4,515 | 2,695,455 | ||||||
Equinix Inc * | 6,103 | 594,066 | ||||||
Monster Worldwide Inc * | 23,788 | 395,119 | ||||||
NVIDIA Corp * | 14,223 | 247,196 | ||||||
Palm Inc * | 58,404 | 219,599 | ||||||
Redecard SA (Brazil) | 66,682 | 1,233,637 | ||||||
Rovi Corp * | 14,455 | 536,714 | ||||||
salesforce.com inc * | 23,032 | 1,714,732 | ||||||
Teradata Corp * | 49,181 | 1,420,839 | ||||||
11,784,073 | ||||||||
Materials - 6.4% | ||||||||
Intrepid Potash Inc * | 20,655 | 626,466 | ||||||
Martin Marietta Materials Inc | 11,605 | 969,598 | ||||||
Nalco Holding Co | 38,452 | 935,537 | ||||||
Rockwood Holdings Inc * | 27,655 | 736,176 | ||||||
Texas Industries Inc | 7,379 | 252,140 | ||||||
3,519,917 | ||||||||
Telecommunication Services - 1.1% | ||||||||
Millicom International Cellular SA (Luxembourg) | 6,589 | 587,410 | ||||||
Total Common Stocks (Cost $42,608,247) | 53,848,479 | |||||||
SHORT-TERM INVESTMENT - 1.3% | ||||||||
Money Market Fund - 1.3% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 728,987 | 728,987 | ||||||
Total Short-Term Investment (Cost $728,987) | 728,987 | |||||||
TOTAL INVESTMENTS - 100.7% (Cost $44,114,126) | 55,393,981 | |||||||
OTHER ASSETS & LIABILITIES, NET - (0.7%) | (399,712 | ) | ||||||
NET ASSETS - 100.0% | $ | 54,994,269 | ||||||
See Notes to Financial Statements | C-54 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL MID-CAP GROWTH FUND
Schedule of Investments (Continued)
March 31, 2010
PL MID-CAP GROWTH FUND
Schedule of Investments (Continued)
March 31, 2010
Notes to Schedule of Investments
(a) | As of March 31, 2010, the Fund was diversified as a percentage of net assets as follows: |
Consumer Discretionary | 26.6 | % | ||
Information Technology | 21.4 | % | ||
Industrials | 13.6 | % | ||
Financials | 12.1 | % | ||
Health Care | 10.3 | % | ||
Materials | 6.4 | % | ||
Energy | 6.2 | % | ||
Consumer Staples | 1.7 | % | ||
Short-Term Investment | 1.3 | % | ||
Telecommunication Services | 1.1 | % | ||
100.7 | % | |||
Other Assets & Liabilities, Net | (0.7 | %) | ||
100.0 | % | |||
(b) | Securities with a total aggregate value of $4,571,287 or 8.3% of the net assets were valued under the fair value procedures established by the Funds’ Board of Trustees, including considerations to determine fair values for certain foreign equity securities, if applicable. | |
(c) | 1.5% of the Fund’s net assets were reported illiquid by the portfolio manager under the Funds’ policy. | |
(d) | Fair Value Measurements | |
The following is a summary of the Fund’s holdings as categorized under the three-tier hierarchy of inputs used in valuing the Fund’s assets and liabilities (See Note 10 in Notes to Financial Statements) as of March 31, 2010: |
Level 2 | Level 3 | |||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||
March 31, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||
Assets | ||||||||||||||||||
Convertible Preferred Stocks (1) | $ | 816,515 | $ | — | $ | — | $ | 816,515 | ||||||||||
Common Stocks | ||||||||||||||||||
Consumer Discretionary | 14,612,494 | 12,604,984 | 2,007,510 | — | ||||||||||||||
Consumer Staples | 934,927 | 934,927 | — | — | ||||||||||||||
Energy | 3,407,689 | 3,407,689 | — | — | ||||||||||||||
Financials | 6,679,890 | 6,679,890 | — | — | ||||||||||||||
Health Care | 5,099,572 | 5,099,572 | — | — | ||||||||||||||
Industrials | 7,222,507 | 5,989,877 | 1,232,630 | — | ||||||||||||||
Information Technology | 11,784,073 | 10,973,455 | 810,618 | — | ||||||||||||||
Materials | 3,519,917 | 3,519,917 | — | — | ||||||||||||||
Telecommunication Services | 587,410 | 587,410 | — | — | ||||||||||||||
53,848,479 | 49,797,721 | 4,050,758 | — | |||||||||||||||
Short-Term Investment | 728,987 | 728,987 | — | — | ||||||||||||||
Total | $ | 55,393,981 | $ | 50,526,708 | $ | 4,050,758 | $ | 816,515 | ||||||||||
The following is a reconciliation of investments for significant unobservable inputs (Level 3) used in valuing the Fund’s assets and liabilities (See Note 10 in Notes to Financial Statements) for the year ended March 31, 2010:
Change in Net | ||||||||||||||||||||||||||||
Unrealized | ||||||||||||||||||||||||||||
Appreciation | ||||||||||||||||||||||||||||
Total Change | Transfers | on Level 3 | ||||||||||||||||||||||||||
Value, | Net | Total Net | in Net | In and/ | Holdings Held at | |||||||||||||||||||||||
Beginning | Purchases | Realized Gains | Unrealized | or Out of | Value, | the End of Year, | ||||||||||||||||||||||
of Year | (Sales) | (Losses) | Appreciation | Level 3 | End of Year | if Applicable | ||||||||||||||||||||||
Convertible Preferred Stocks (1) | $ | 132,336 | $ | 644,556 | $ | — | $ | 39,623 | $ | — | $ | 816,515 | $ | 39,623 | ||||||||||||||
(1) | For equity securities categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | C-55 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
PL REAL ESTATE FUND
Schedule of Investments
March 31, 2010
PL REAL ESTATE FUND
Schedule of Investments
March 31, 2010
Shares | Value | |||||||
COMMON STOCKS - 95.2% | ||||||||
Consumer Discretionary - 4.6% | ||||||||
Morgans Hotel Group Co * | 23,324 | $ | 149,507 | |||||
Starwood Hotels & Resorts Worldwide Inc | 32,587 | 1,519,858 | ||||||
1,669,365 | ||||||||
Financials - 89.3% | ||||||||
Acadia Realty Trust REIT | 21,233 | 379,221 | ||||||
AMB Property Corp REIT | 16,276 | 443,358 | ||||||
Apartment Investment & Management Co ‘A’ REIT | 6,740 | 124,083 | ||||||
AvalonBay Communities Inc REIT | 19,149 | 1,653,516 | ||||||
Boston Properties Inc REIT | 22,789 | 1,719,202 | ||||||
Brookfield Properties Corp (Canada) | 75,259 | 1,155,978 | ||||||
Camden Property Trust REIT | 15,996 | 665,914 | ||||||
Colony Financial Inc REIT | 7,310 | 146,200 | ||||||
Cousins Properties Inc REIT | 44,924 | 373,318 | ||||||
CreXus Investment Corp REIT | 6,780 | 90,649 | ||||||
DCT Industrial Trust Inc REIT | 46,000 | 240,580 | ||||||
DiamondRock Hospitality Co REIT * | 121 | 1,223 | ||||||
Digital Realty Trust Inc REIT | 3,410 | 184,822 | ||||||
Douglas Emmett Inc REIT | 3,530 | 54,256 | ||||||
Duke Realty Corp REIT | 11,150 | 138,260 | ||||||
Equity Lifestyle Properties Inc REIT | 14,144 | 762,079 | ||||||
Equity One Inc REIT | 281 | 5,308 | ||||||
Equity Residential REIT | 87,095 | 3,409,769 | ||||||
Essex Property Trust Inc REIT | 450 | 40,478 | ||||||
Extendicare REIT (Canada) | 1,580 | 16,288 | ||||||
Federal Realty Investment Trust REIT | 10,939 | 796,469 | ||||||
Forest City Enterprises Inc ‘A’ * | 52,433 | 755,560 | ||||||
HCP Inc REIT | 40,430 | 1,334,190 | ||||||
Healthcare Realty Trust Inc REIT | 35,049 | 816,291 | ||||||
Host Hotels & Resorts Inc REIT | 101,602 | 1,488,469 | ||||||
HRPT Properties Trust REIT | 6,910 | 53,760 | ||||||
Kilroy Realty Corp REIT | 5,574 | 171,902 | ||||||
Kite Realty Group Trust REIT | 11,830 | 55,956 | ||||||
Lexington Realty Trust REIT | 520 | 3,385 | ||||||
Liberty Property Trust REIT | 10,911 | 370,319 | ||||||
LTC Properties Inc REIT | 2,480 | 67,109 | ||||||
Mack-Cali Realty Corp REIT | 15,989 | 563,612 | ||||||
Nationwide Health Properties Inc REIT | 2,490 | 87,524 | ||||||
Parkway Properties Inc REIT | 1,140 | 21,409 | ||||||
Pebblebrook Hotel Trust REIT * | 5,540 | 116,506 | ||||||
Plum Creek Timber Co Inc REIT | 31,139 | 1,211,619 | ||||||
Post Properties Inc REIT | 14,170 | 312,023 | ||||||
PS Business Parks Inc REIT | 4,932 | 263,369 | ||||||
Public Storage REIT | 21,487 | 1,976,589 | ||||||
Rayonier Inc REIT | 3,920 | 178,086 | ||||||
Regency Centers Corp REIT | 35,501 | 1,330,223 | ||||||
Retail Opportunity Investments Corp * | 28,463 | 288,046 | ||||||
Senior Housing Properties Trust REIT | 50,723 | 1,123,515 | ||||||
Simon Property Group Inc REIT | 45,727 | 3,836,495 | ||||||
Sovran Self Storage Inc REIT | 2,912 | 101,512 | ||||||
Starwood Property Trust Inc REIT | 10,950 | 211,335 | ||||||
Taubman Centers Inc REIT | 4,563 | 182,155 | ||||||
The Macerich Co REIT | 1,763 | 67,541 | ||||||
Ventas Inc REIT | 15,030 | 713,624 | ||||||
Vornado Realty Trust REIT | 31,381 | 2,375,572 | ||||||
32,478,667 | ||||||||
Health Care - 1.3% | ||||||||
Assisted Living Concepts Inc ‘A’ * | 12,210 | 400,976 | ||||||
Capital Senior Living Corp * | 12,030 | 63,278 | ||||||
464,254 | ||||||||
Total Common Stocks (Cost $23,814,703) | 34,612,286 | |||||||
SHORT-TERM INVESTMENT - 4.5% | ||||||||
Money Market Fund - 4.5% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 1,616,539 | 1,616,539 | ||||||
Total Short-Term Investment (Cost $1,616,539) | 1,616,539 | |||||||
TOTAL INVESTMENTS - 99.7% (Cost $25,431,242) | 36,228,825 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.3% | 123,201 | |||||||
NET ASSETS - 100.0% | $ | 36,352,026 | ||||||
Notes to Schedule of Investments
(a) | As of March 31, 2010, the Fund was diversified by property sector as a percentage of net assets as follows: |
Specialized | 25.4 | % | ||
Residential | 19.2 | % | ||
Retail | 18.3 | % | ||
Diversified | 10.1 | % | ||
Office | 8.0 | % | ||
Real Estate Operating Companies | 5.2 | % | ||
Hotels, Resorts & Cruise Lines | 4.6 | % | ||
Industrial | 1.9 | % | ||
Health Care Facilities | 1.3 | % | ||
Mortgage | 1.2 | % | ||
95.2 | % | |||
Short-Term Investment | 4.5 | % | ||
Other Assets & Liabilities, Net | 0.3 | % | ||
100.0 | % | |||
(b) | Fair Value Measurements | |
The following is a summary of the Fund’s holdings as categorized under the three-tier hierarchy of inputs used in valuing the Fund’s assets and liabilities (See Note 10 in Notes to Financial Statements) as of March 31, 2010: |
Level 2 | Level 3 | |||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||
March 31, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||
Assets | ||||||||||||||||||
Common Stocks (1) | $ | 34,612,286 | $ | 34,612,286 | $ | — | $ | — | ||||||||||
Short-Term Investment | 1,616,539 | 1,616,539 | — | — | ||||||||||||||
Total | $ | 36,228,825 | $ | 36,228,825 | $ | — | $ | — | ||||||||||
(1) | For equity securities categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | C-56 | See explanation of symbols and terms, if any, on page C-57 |
PACIFIC LIFE FUNDS
Schedule of Investments
Explanation of Symbols and Terms
March 31, 2010
Schedule of Investments
Explanation of Symbols and Terms
March 31, 2010
Explanation of Symbols:
* | Non-income producing securities. | |
“ | Pass-through securities backed by a pool of mortgages or other loans on which principal payments are periodically made. Therefore, the effective maturity is shorter than the stated maturity. | |
^ | Securities with their principal amount adjusted for inflation. | |
§ | Variable rate securities. The rate shown is based on the latest available information as of March 31, 2010. | |
Ω | Securities were in default as of March 31,2010. | |
± | The security is a perpetual bond and has no definite maturity date. | |
∞ | Unsettled position. Contract rates do not take effect until settlement date. | |
~ | Securities are not registered under the Securities Act of 1933 (1933 Act). These securities are either (1) exempt from registration pursuant to Rule 144A of the 1933 Act and may only be sold to “qualified institutional buyers”, or (2) the securities comply with Regulation S rules governing offers and sales made outside the United States without registration under the 1933 Act and contain certain restrictions as to public resale. | |
‡ | Securities were fully/partially segregated with the broker(s)/custodian as collateral for securities sold short, delayed delivery securities, futures contracts, written option contracts and/or swap contracts, if any, as of March 31, 2010. | |
Δ | Illiquid holdings. Holdings were reported as illiquid by the portfolio manager pursuant to the Funds’ policy and procedures (See Note 2G in Notes to Financial Statements). | |
+ | Securities were fair valued under procedures established by the Funds’ Board of Trustees, including considerations to determine fair values for certain foreign equity securities, if applicable (See Note 2A in Notes to Financial Statements). |
Counterparty Abbreviations:
BRC | Barclays | |
BNP | BNP Paribas | |
CIT | Citigroup | |
CSF | Credit Suisse | |
DUB | Deutsche Bank | |
GSC | Goldman Sachs | |
HSB | HSBC | |
JPM | JPMorgan Chase | |
MER | Merrill Lynch | |
MSC | Morgan Stanley | |
RBS | Royal Bank of Scotland | |
UBS | UBS |
Currency Abbreviations:
AUD | Australian Dollar | |
BRL | Brazilian Real | |
CAD | Canadian Dollar | |
CHF | Swiss Franc | |
CNY | Chinese Renminbi | |
DKK | Danish Krone | |
EUR | Euro | |
GBP | British Pound | |
IDR | Indonesian Rupiah | |
JPY | Japanese Yen | |
KRW | Korean Won | |
MXN | Mexican Peso | |
MYR | Malaysian Ringgit | |
PHP | Philippine Peso | |
SGD | Singapore Dollar | |
TWD | Taiwanese Dollar | |
USD | United States Dollar |
Other Abbreviations:
ADR | American Depositary Receipt | |
CBOT | Chicago Board of Trade | |
CPI | Consumer Price Index | |
CLO | Collateralized Loan Obligation | |
CME | Chicago Mercantile Exchange | |
CVA | Certificaten Van Aandelen (Dutch Certificate) | |
FDR | Fiduciary Depositary Receipt | |
GDR | Global Depositary Receipt | |
LI | London Stock Exchange | |
LIBOR | London Interbank Offered Rate | |
‘NY’ | New York Shares | |
OTC | Over the Counter | |
REIT | Real Estate Investment Trust | |
RNC | Riparmio Non-Convertible | |
(Non-convertible savings shares on Italian Stock Exchanges) | ||
SDR | Swedish Depositary Receipt | |
VVPR | Verminderde Voorheffing Precompte Reduit (Belgium dividend coupon) | |
XAMS | Amsterdam Stock Exchange | |
XVTX | Virt-X Pan European Stock Exchange |
Note: The descriptions and Standard & Poor’s quality ratings of the companies shown in the schedule of investments were obtained from published reports and other sources believed to be reliable, and are not audited by the Independent Registered Public Accounting Firm.
See Notes to Financial Statements | C-57 |
PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 2010
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 2010
PL Portfolio Optimization Funds | PL Money | PL Small-Cap | PL International | |||||||||||||||||||||||||||||
Moderate- | Moderate- | Market | Growth | Value | ||||||||||||||||||||||||||||
Conservative Fund | Conservative Fund | Moderate Fund | Aggressive Fund | Aggressive Fund | Fund | Fund | Fund | |||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Investments, at cost | $ | 145,852,701 | $ | 165,523,181 | $ | 544,325,638 | $ | 505,400,406 | $ | 199,639,549 | $ | 34,611,815 | $ | 19,442,075 | $ | 82,611,040 | ||||||||||||||||
Investments in affiliates, at value | $ | 156,442,845 | $ | 172,873,718 | $ | 546,621,563 | $ | 497,984,338 | $ | 201,623,593 | $ | — | $ | — | $ | — | ||||||||||||||||
Investments, at value | 243,392 | 222,192 | 1,253,798 | 378,244 | — | 34,611,815 | 25,621,897 | 86,600,370 | ||||||||||||||||||||||||
Cash (1) | — | — | — | — | — | — | — | 165,651 | ||||||||||||||||||||||||
Foreign currency held, at value (1), (2) | — | — | — | — | — | — | — | 79,475 | ||||||||||||||||||||||||
Receivables: | ||||||||||||||||||||||||||||||||
Dividends and interest | — | — | — | — | — | 14,489 | 5,858 | 261,851 | ||||||||||||||||||||||||
Foreign tax reclaim | — | — | — | — | — | — | — | 73,808 | ||||||||||||||||||||||||
Fund shares sold | 1,762,075 | 827,008 | 2,968,760 | 2,557,540 | 252,849 | 190,960 | — | 250,522 | ||||||||||||||||||||||||
Securities sold | — | — | — | — | 160,481 | — | 91,376 | 386,337 | ||||||||||||||||||||||||
Variation margin | — | — | — | — | — | — | — | 6,641 | ||||||||||||||||||||||||
Due from adviser | 25,631 | 22,489 | 58,811 | 51,392 | 22,952 | 18,114 | 6,869 | 36,501 | ||||||||||||||||||||||||
Prepaid expenses and other assets | 18,803 | 18,801 | 36,449 | 33,643 | 20,959 | 6,786 | 4,710 | 7,123 | ||||||||||||||||||||||||
Total Assets | 158,492,746 | 173,964,208 | 550,939,381 | 501,005,157 | 202,080,834 | 34,842,164 | 25,730,710 | 87,868,279 | ||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||||||||||
Fund shares redeemed | 276,965 | 695,996 | 1,637,651 | 4,153,582 | 1,650,628 | 142,591 | 35 | 20,313 | ||||||||||||||||||||||||
Securities purchased | 243,392 | 222,192 | 1,253,798 | 378,244 | — | — | — | 1,423,792 | ||||||||||||||||||||||||
Due to custodian | — | — | — | — | 160,481 | — | — | — | ||||||||||||||||||||||||
Accrued advisory fees | 26,099 | 28,612 | 90,524 | 82,628 | 33,627 | — | 12,864 | 45,427 | ||||||||||||||||||||||||
Accrued administration fees | — | — | — | — | — | — | 6,432 | 20,966 | ||||||||||||||||||||||||
Accrued support service expenses | 11,696 | 13,189 | 41,308 | 39,566 | 16,175 | 3,733 | 1,991 | 6,470 | ||||||||||||||||||||||||
Accrued custodian fees and expenses | 2,550 | 2,550 | 2,550 | 2,550 | 2,550 | 4,209 | 5,438 | 28,268 | ||||||||||||||||||||||||
Accrued legal, audit and tax service fees | 27,305 | 30,927 | 97,060 | 93,077 | 38,094 | 8,652 | 4,679 | 15,282 | ||||||||||||||||||||||||
Accrued deferred trustee compensation and expenses | 908 | 1,548 | 5,100 | 4,924 | 1,914 | 3,725 | 1,969 | 3,823 | ||||||||||||||||||||||||
Accrued distribution and/or service fees | 11,914 | 12,541 | 40,489 | 37,668 | 14,193 | 1,543 | 1,233 | 4,039 | ||||||||||||||||||||||||
Accrued transfer agency out-of-pocket expenses | 15,750 | 18,884 | 62,417 | 61,995 | 25,644 | 4,607 | 2,263 | 7,303 | ||||||||||||||||||||||||
Accrued other | 10,572 | 12,073 | 37,932 | 36,182 | 14,775 | 4,180 | 2,409 | 8,663 | ||||||||||||||||||||||||
Total Liabilities | 627,151 | 1,038,512 | 3,268,829 | 4,890,416 | 1,958,081 | 173,240 | 39,313 | 1,584,346 | ||||||||||||||||||||||||
NET ASSETS | $ | 157,865,595 | $ | 172,925,696 | $ | 547,670,552 | $ | 496,114,741 | $ | 200,122,753 | $ | 34,668,924 | $ | 25,691,397 | $ | 86,283,933 | ||||||||||||||||
(1) | Includes margin deposits of $211,802 held as collateral for futures contracts in the PL International Value Fund. | |
(2) | The cost of foreign currency for the PL International Value Fund was $78,253. |
See Notes to Financial Statements
D-1
PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
MARCH 31, 2010
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
MARCH 31, 2010
PL Portfolio Optimization Funds | PL Money | PL Small-Cap | PL International | |||||||||||||||||||||||||||||
Moderate- | Moderate- | Market | Growth | Value | ||||||||||||||||||||||||||||
Conservative Fund | Conservative Fund | Moderate Fund | Aggressive Fund | Aggressive Fund | Fund (1) | Fund | Fund | |||||||||||||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||||||||||||||||||
Paid-in capital | $ | 151,987,246 | $ | 172,621,876 | $ | 565,334,731 | $ | 540,196,775 | $ | 230,120,095 | $ | 34,672,441 | $ | 31,348,563 | $ | 130,388,497 | ||||||||||||||||
Undistributed/accumulated net investment income (loss) | 778,905 | 1,497,808 | 4,542,909 | 3,042,265 | 1,132,279 | (3,665 | ) | (1,955 | ) | 302,691 | ||||||||||||||||||||||
Undistributed/accumulated net realized gain (loss) | (5,734,092 | ) | (8,766,717 | ) | (25,756,811 | ) | (40,086,475 | ) | (33,113,665 | ) | 148 | (11,835,033 | ) | (48,407,052 | ) | |||||||||||||||||
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 10,833,536 | 7,572,729 | 3,549,723 | (7,037,824 | ) | 1,984,044 | — | 6,179,822 | 3,999,797 | |||||||||||||||||||||||
NET ASSETS | $ | 157,865,595 | $ | 172,925,696 | $ | 547,670,552 | $ | 496,114,741 | $ | 200,122,753 | $ | 34,668,924 | $ | 25,691,397 | $ | 86,283,933 | ||||||||||||||||
Class A Shares: | ||||||||||||||||||||||||||||||||
Net Assets | $ | 68,938,271 | $ | 78,159,552 | $ | 247,213,485 | $ | 225,236,209 | $ | 98,669,022 | $ | 34,668,924 | $ | 25,691,397 | $ | 86,283,933 | ||||||||||||||||
Shares of beneficial interest outstanding | 6,620,300 | 7,414,505 | 22,858,713 | 21,080,126 | 9,258,763 | 34,679,729 | 2,730,989 | 9,391,301 | ||||||||||||||||||||||||
Net Asset Value per share* | $ | 10.41 | $ | 10.54 | $ | 10.81 | $ | 10.68 | $ | 10.66 | $ | 1.00 | $ | 9.41 | $ | 9.19 | ||||||||||||||||
Sales Charge - - Maximum is 5.50% of offering price | 0.61 | 0.61 | 0.63 | 0.62 | 0.62 | — | 0.55 | 0.53 | ||||||||||||||||||||||||
Maximum offering price per share | $ | 11.02 | $ | 11.15 | $ | 11.44 | $ | 11.30 | $ | 11.28 | $ | 1.00 | $ | 9.96 | $ | 9.72 | ||||||||||||||||
Class B Shares:** | ||||||||||||||||||||||||||||||||
Net Assets | $ | 13,335,697 | $ | 19,202,301 | $ | 65,335,683 | $ | 68,750,615 | $ | 28,776,311 | ||||||||||||||||||||||
Shares of beneficial interest outstanding | 1,290,277 | 1,834,094 | 6,082,192 | 6,501,786 | 2,749,973 | |||||||||||||||||||||||||||
Net Asset Value and offering price per share* | $ | 10.34 | $ | 10.47 | $ | 10.74 | $ | 10.57 | $ | 10.46 | ||||||||||||||||||||||
Class C Shares:** | ||||||||||||||||||||||||||||||||
Net Assets | $ | 67,619,630 | $ | 65,085,560 | $ | 210,889,096 | $ | 189,917,078 | $ | 68,229,651 | ||||||||||||||||||||||
Shares of beneficial interest outstanding | 6,547,328 | 6,217,865 | 19,658,434 | 18,004,286 | 6,520,769 | |||||||||||||||||||||||||||
Net Asset Value and offering price per share* | $ | 10.33 | $ | 10.47 | $ | 10.73 | $ | 10.55 | $ | 10.46 | ||||||||||||||||||||||
Class R Shares:** | ||||||||||||||||||||||||||||||||
Net Assets | $ | 7,971,997 | $ | 10,478,283 | $ | 24,232,288 | $ | 12,210,839 | $ | 4,447,769 | ||||||||||||||||||||||
Shares of beneficial interest outstanding | 768,216 | 996,558 | 2,248,938 | 1,144,057 | 419,121 | |||||||||||||||||||||||||||
Net Asset Value per share | $ | 10.38 | $ | 10.51 | $ | 10.77 | $ | 10.67 | $ | 10.61 | ||||||||||||||||||||||
* | Redemption price per share is equal to the Net Asset Value per share less any applicable contingent deferred sales charge. | |
** | Class B, C and R shares are offered to the PL Portfolio Optimization Funds only (see Note 1 in Notes to Financial Statements). | |
(1) | PL Money Market Fund is not subject to a front-end sales load. |
See Notes to Financial Statements
D-2
PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
MARCH 31, 2010
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
MARCH 31, 2010
PL Large-Cap | PL Short Duration | PL Floating | PL Mid-Cap | PL International | PL Small-Cap | PL Main Street | ||||||||||||||||||||||||||
Value | Bond | Rate Loan | PL Growth LT | Equity | Large-Cap | Value | Core | |||||||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Investments, at cost | $ | 142,933,994 | $ | 73,650,741 | $ | 54,136,604 | $ | 70,709,149 | $ | 85,187,642 | $ | 93,960,224 | $ | 32,107,928 | $ | 126,311,913 | ||||||||||||||||
Investments, at value | $ | 161,919,118 | $ | 74,258,897 | $ | 55,417,203 | $ | 88,973,647 | $ | 102,155,755 | $ | 107,321,883 | $ | 38,124,616 | $ | 147,913,539 | ||||||||||||||||
Cash | — | — | 4,440 | — | — | — | — | — | ||||||||||||||||||||||||
Foreign currency held, at value (1) | — | — | — | 15 | — | 3 | — | — | ||||||||||||||||||||||||
Receivables: | ||||||||||||||||||||||||||||||||
Dividends and interest | 367,825 | 417,122 | 182,715 | 108,562 | 100,175 | 350,242 | 52,603 | 210,254 | ||||||||||||||||||||||||
Foreign tax reclaim | 16,079 | — | — | 29,271 | — | 112,441 | — | — | ||||||||||||||||||||||||
Fund shares sold | 183,827 | 91,038 | 104,341 | 86,615 | 2,737 | 384,925 | — | 299,364 | ||||||||||||||||||||||||
Securities sold | — | 2,286,160 | 3,373,883 | — | 330,104 | — | 131,098 | 146,367 | ||||||||||||||||||||||||
Variation margin | — | 12,033 | — | — | — | — | — | — | ||||||||||||||||||||||||
Due from adviser | 28,863 | 20,824 | 23,302 | 15,835 | 24,240 | 31,839 | 11,436 | 4,723 | ||||||||||||||||||||||||
Forward foreign currency contracts appreciation | — | — | — | 141,543 | — | — | — | — | ||||||||||||||||||||||||
Prepaid expenses and other assets | 9,789 | 6,370 | 1,787 | 7,107 | 7,260 | 7,806 | 1,538 | 5,364 | ||||||||||||||||||||||||
Total Assets | 162,525,501 | 77,092,444 | 59,107,671 | 89,362,595 | 102,620,271 | 108,209,139 | 38,321,291 | 148,579,611 | ||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||||||||||
Fund shares redeemed | 831 | — | — | 1,195 | 962 | 5,759 | 67,200 | — | ||||||||||||||||||||||||
Securities purchased | — | 1,330,016 | 5,910,908 | — | 833,971 | 17,944 | 23,810 | 2,382,075 | ||||||||||||||||||||||||
Accrued advisory fees | 87,457 | 25,317 | 32,767 | 40,833 | 55,589 | 73,805 | 24,277 | 53,612 | ||||||||||||||||||||||||
Accrued administration fees | 40,365 | 18,988 | 13,107 | 22,272 | 25,656 | 26,049 | 9,711 | 35,742 | ||||||||||||||||||||||||
Accrued support service expenses | 12,691 | 5,723 | 3,982 | 6,968 | 7,714 | 8,212 | 2,986 | 11,198 | ||||||||||||||||||||||||
Accrued custodian fees and expenses | 4,359 | 4,950 | 5,016 | 11,198 | 6,113 | 29,588 | 4,635 | 10,618 | ||||||||||||||||||||||||
Accrued legal, audit and tax service fees | 29,831 | 13,416 | 9,287 | 16,378 | 18,170 | 19,339 | 7,019 | 26,321 | ||||||||||||||||||||||||
Accrued deferred trustee compensation and expenses | 4,495 | 1,188 | 81 | 3,213 | 916 | 2,581 | — | 1,398 | ||||||||||||||||||||||||
Accrued distribution and/or service fees | 7,728 | 3,603 | 2,517 | 4,249 | 4,872 | 5,037 | 1,835 | 6,940 | ||||||||||||||||||||||||
Accrued transfer agency out-of-pocket expenses | 14,322 | 6,429 | 4,454 | 7,887 | 8,635 | 9,267 | 3,340 | 12,526 | ||||||||||||||||||||||||
Accrued other | 11,713 | 9,158 | 3,692 | 7,967 | 7,520 | 9,356 | 3,310 | 10,769 | ||||||||||||||||||||||||
Forward foreign currency contracts depreciation | — | — | — | 20,978 | — | — | — | — | ||||||||||||||||||||||||
Total Liabilities | 213,792 | 1,418,788 | 5,985,811 | 143,138 | 970,118 | 206,937 | 148,123 | 2,551,199 | ||||||||||||||||||||||||
NET ASSETS | $ | 162,311,709 | $ | 75,673,656 | $ | 53,121,860 | $ | 89,219,457 | $ | 101,650,153 | $ | 108,002,202 | $ | 38,173,168 | $ | 146,028,412 | ||||||||||||||||
(1) | The cost of foreign currency for the PL Growth LT Fund and the PL International Large-Cap Fund were $15 and $3, respectively. |
See Notes to Financial Statements | D-3 |
PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
MARCH 31, 2010
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
MARCH 31, 2010
PL Large-Cap | PL Short Duration | PL Floating | PL Mid-Cap | PL International | PL Small-Cap | PL Main Street | ||||||||||||||||||||||||||
Value | Bond | Rate Loan | PL Growth LT | Equity | Large-Cap | Value | Core | |||||||||||||||||||||||||
Fund | Fund | Fund (1) | Fund | Fund | Fund | Fund (1) | Fund (1) | |||||||||||||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||||||||||||||||||
Paid-in capital | $ | 159,712,140 | $ | 75,170,926 | $ | 52,983,872 | $ | 99,202,779 | $ | 113,200,419 | $ | 107,689,761 | $ | 42,194,742 | $ | 162,358,017 | ||||||||||||||||
Undistributed/Accumulated net investment income (loss) | 462,889 | 10,068 | 4,749 | (123,728 | ) | 46,170 | 923,664 | 78,140 | 94,313 | |||||||||||||||||||||||
Accumulated net realized loss | (16,849,270 | ) | (132,428 | ) | (1,147,360 | ) | (28,246,209 | ) | (28,564,549 | ) | (13,977,380 | ) | (10,116,402 | ) | (38,025,544 | ) | ||||||||||||||||
Net unrealized appreciation on investments and assets and liabilities in foreign currencies | 18,985,950 | 625,090 | 1,280,599 | 18,386,615 | 16,968,113 | 13,366,157 | 6,016,688 | 21,601,626 | ||||||||||||||||||||||||
NET ASSETS | $ | 162,311,709 | $ | 75,673,656 | $ | 53,121,860 | $ | 89,219,457 | $ | 101,650,153 | $ | 108,002,202 | $ | 38,173,168 | $ | 146,028,412 | ||||||||||||||||
Class A Shares: | ||||||||||||||||||||||||||||||||
Net Assets | $ | 162,311,709 | $ | 75,673,656 | $ | 53,121,860 | $ | 89,219,457 | $ | 101,650,153 | $ | 108,002,202 | $ | 38,173,168 | $ | 146,028,412 | ||||||||||||||||
Shares of beneficial interest outstanding | 15,570,329 | 7,569,530 | 5,377,810 | 7,960,105 | 11,737,934 | 7,809,950 | 4,453,599 | 16,222,366 | ||||||||||||||||||||||||
Net Asset Value per share* | $ | 10.42 | $ | 10.00 | $ | 9.88 | $ | 11.21 | $ | 8.66 | $ | 13.83 | $ | 8.57 | $ | 9.00 | ||||||||||||||||
Sales Charge — Maximum is 5.50% of offering price | 0.61 | 0.58 | — | 0.65 | 0.50 | 0.80 | — | — | ||||||||||||||||||||||||
Maximum offering price per share | $ | 11.03 | $ | 10.58 | $ | 9.88 | $ | 11.86 | $ | 9.16 | $ | 14.63 | $ | 8.57 | $ | 9.00 | ||||||||||||||||
* | Redemption price per share is equal to the Net Asset Value per share less any applicable contingent deferred sales charge. | |
(1) | The PL Floating Rate Loan, PL Small-Cap Value and PL Main Street Core Funds are offered to the PL Portfolio Optimization Funds only and are not subject to a front-end sales load. |
See Notes to Financial Statements | D-4 |
PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
MARCH 31, 2010
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
MARCH 31, 2010
PL Emerging | PL Managed | PL Inflation | PL Large-Cap | PL Mid-Cap | ||||||||||||||||||||||||
Markets | Bond | Managed | Growth | PL Comstock | Growth | PL Real Estate | ||||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Investments and repurchase agreements, at cost | $ | 31,255,835 | $ | 248,306,109 | $ | 167,028,017 | $ | 49,919,722 | $ | 111,279,548 | $ | 44,114,126 | $ | 25,431,242 | ||||||||||||||
Investments, at value | $ | 47,161,437 | $ | 183,995,297 | $ | 169,420,002 | $ | 61,387,750 | $ | 127,951,594 | $ | 55,393,981 | $ | 36,228,825 | ||||||||||||||
Repurchase agreements, at value | — | 64,300,000 | 1,100,000 | — | — | — | — | |||||||||||||||||||||
Cash (1) | — | 214,276 | 109,700 | — | — | — | — | |||||||||||||||||||||
Foreign currency held, at value (2) | 530,648 | 902,068 | 376,495 | — | — | — | — | |||||||||||||||||||||
Receivables: | ||||||||||||||||||||||||||||
Dividends and interest | 76,049 | 1,110,359 | 831,673 | 22,569 | 266,666 | 9,213 | 101,917 | |||||||||||||||||||||
Foreign tax reclaim | 1,206 | — | — | — | — | — | — | |||||||||||||||||||||
Fund shares sold | 121,390 | 148,330 | 166,058 | 127,929 | 130,551 | — | — | |||||||||||||||||||||
Securities sold | 61,292 | 5,695,783 | 172,652 | 963,994 | 63,859 | — | 144,017 | |||||||||||||||||||||
Variation margin | — | 117,010 | 14,845 | — | — | — | — | |||||||||||||||||||||
Due from adviser | 28,704 | 57,836 | 26,291 | 26,913 | 22,287 | 15,137 | 10,888 | |||||||||||||||||||||
Forward foreign currency contracts appreciation | — | 215,294 | 414,486 | — | — | — | — | |||||||||||||||||||||
Prepaid expenses and other assets | 1,795 | 12,320 | 9,212 | 5,870 | 8,866 | 5,876 | 4,880 | |||||||||||||||||||||
Swap contracts, at value | — | 3,106,117 | 285,148 | — | — | — | — | |||||||||||||||||||||
Total Assets | 47,982,521 | 259,874,690 | 172,926,562 | 62,535,025 | 128,443,823 | 55,424,207 | 36,490,527 | |||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||||||
Due to brokers (3) | — | 1,940,000 | — | — | — | — | — | |||||||||||||||||||||
Fund shares redeemed | — | 4,482 | 12,412 | — | — | 50,377 | 53,987 | |||||||||||||||||||||
Securities purchased | 130,127 | 20,765,179 | 23,021,882 | 1,338,853 | 94,799 | 295,986 | 26,271 | |||||||||||||||||||||
Income distributions | — | 1,108 | 849 | — | — | — | 38 | |||||||||||||||||||||
Deferred foreign capital gains tax | 12,088 | — | — | — | — | — | — | |||||||||||||||||||||
Accrued advisory fees | 30,984 | 79,252 | 50,004 | 36,182 | 79,233 | 32,545 | 27,117 | |||||||||||||||||||||
Accrued administration fees | 11,619 | 59,439 | 37,503 | 14,972 | 31,693 | 13,948 | 9,039 | |||||||||||||||||||||
Accrued support service expenses | 3,733 | 18,166 | 11,945 | 4,728 | 9,705 | 4,230 | 2,737 | |||||||||||||||||||||
Accrued custodian fees and expenses | 57,508 | 21,349 | 8,483 | 4,366 | 6,776 | 8,067 | 4,712 | |||||||||||||||||||||
Accrued legal, audit and tax service fees | 8,774 | 42,621 | 27,961 | 11,076 | 22,715 | 9,981 | 6,471 | |||||||||||||||||||||
Accrued deferred trustee compensation and expenses | 745 | 8,220 | 2,428 | 6,189 | 3,259 | 3,214 | 455 | |||||||||||||||||||||
Accrued distribution and/or service fees | 2,243 | 11,246 | 7,086 | 2,885 | 6,112 | 2,643 | 1,760 | |||||||||||||||||||||
Accrued transfer agency out-of-pocket expenses | 4,175 | 20,443 | 13,565 | 5,358 | 10,982 | 4,855 | 3,089 | |||||||||||||||||||||
Accrued other | 6,905 | 26,184 | 16,999 | 4,309 | 9,430 | 4,092 | 2,825 | |||||||||||||||||||||
Forward foreign currency contracts depreciation | — | 63,426 | 90,496 | — | — | — | — | |||||||||||||||||||||
Outstanding options written, at value (premiums received $836,411 and $445,261, respectively) | — | 341,330 | 133,621 | — | — | — | — | |||||||||||||||||||||
Swap contracts, at value | — | 514,766 | 38,169 | — | — | — | — | |||||||||||||||||||||
Total Liabilities | 268,901 | 23,917,211 | 23,473,403 | 1,428,918 | 274,704 | 429,938 | 138,501 | |||||||||||||||||||||
NET ASSETS | $ | 47,713,620 | $ | 235,957,479 | $ | 149,453,159 | $ | 61,106,107 | $ | 128,169,119 | $ | 54,994,269 | $ | 36,352,026 | ||||||||||||||
(1) | Includes margin deposits of $214,276 and $109,700 segregated for futures contracts in the PL Managed Bond and PL Inflation Managed Funds, respectively. | |
(2) | The cost of foreign currency for the PL Emerging Markets, PL Managed Bond and PL Inflation Managed Bond Funds were $527,491, $905,578 and $384,073, respectively. | |
(3) | The PL Managed Bond Fund received cash collateral to mitigate risk of loss to certain counterparties, which will be repaid based on master netting arrangements between the Fund and the counterparty. The Fund invests such cash collateral in investment securities (See Note 11 in Notes to Financial Statements). |
See Notes to Financial Statements | D-5 |
PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
MARCH 31, 2010
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
MARCH 31, 2010
PL Emerging | PL Managed | PL Inflation | PL Large-Cap | PL Mid-Cap | ||||||||||||||||||||||||
Markets | Bond | Managed | Growth | PL Comstock | Growth | PL Real Estate | ||||||||||||||||||||||
Fund (1) | Fund | Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||||||||||||||
Paid-in capital | $ | 38,482,539 | $ | 229,830,422 | $ | 151,762,768 | $ | 56,153,493 | $ | 149,776,403 | $ | 43,450,200 | $ | 40,715,003 | ||||||||||||||
Undistributed/accumulated net investment income (loss) | (7,231 | ) | 543,826 | 607,209 | (6,156 | ) | 233,651 | (8,296 | ) | 23,386 | ||||||||||||||||||
Undistributed/accumulated net realized gain (loss) | (6,656,691 | ) | 2,166,549 | (7,338,512 | ) | (6,509,258 | ) | (38,512,981 | ) | 272,510 | (15,183,946 | ) | ||||||||||||||||
Net unrealized appreciation on investments and assets and liabilities in foreign currencies | 15,895,003 | 3,416,682 | 4,421,694 | 11,468,028 | 16,672,046 | 11,279,855 | 10,797,583 | |||||||||||||||||||||
NET ASSETS | $ | 47,713,620 | $ | 235,957,479 | $ | 149,453,159 | $ | 61,106,107 | $ | 128,169,119 | $ | 54,994,269 | $ | 36,352,026 | ||||||||||||||
Class A Shares: | ||||||||||||||||||||||||||||
Net Assets | $ | 47,713,620 | $ | 235,957,479 | $ | 149,453,159 | $ | 61,106,107 | $ | 128,169,119 | $ | 54,994,269 | $ | 36,352,026 | ||||||||||||||
Shares of beneficial interest outstanding | 3,913,448 | 21,946,032 | 14,800,696 | 7,921,770 | 11,986,440 | 6,538,765 | 3,932,938 | |||||||||||||||||||||
Net Asset Value per share* | $ | 12.19 | $ | 10.75 | $ | 10.10 | $ | 7.71 | $ | 10.69 | $ | 8.41 | $ | 9.24 | ||||||||||||||
Sales Charge — Maximum is 5.50% of offering price | — | 0.63 | 0.59 | 0.45 | 0.62 | 0.49 | 0.54 | |||||||||||||||||||||
Maximum offering price per share | $ | 12.19 | $ | 11.38 | $ | 10.69 | $ | 8.16 | $ | 11.31 | $ | 8.90 | $ | 9.78 | ||||||||||||||
* | Redemption price per share is equal to the Net Asset Value per share less any applicable contingent deferred sales charge. | |
(1) | The PL Emerging Markets Fund is offered to the PL Portfolio Optimization Funds only and is not subject to a front-end sales load. |
See Notes to Financial Statements | D-6 |
PACIFIC LIFE FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 2010
FOR THE YEAR ENDED MARCH 31, 2010
PL Portfolio Optimization Funds | PL Money | PL Small-Cap | PL International | |||||||||||||||||||||||||||||
Moderate- | Moderate- | Market | Growth | Value | ||||||||||||||||||||||||||||
Conservative Fund | Conservative Fund | Moderate Fund | Aggressive Fund | Aggressive Fund | Fund | Fund | Fund | |||||||||||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||||||||||||||
Dividends, net of foreign taxes withheld | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 80,566 | $ | 2,821,621 | ||||||||||||||||
Dividends from affiliated mutual fund investments | 3,993,476 | 3,759,816 | 9,478,053 | 6,326,841 | 1,967,250 | — | — | — | ||||||||||||||||||||||||
Dividends from mutual fund investments | 138 | 189 | 98 | 321 | 179 | 4,898 | 181 | 284 | ||||||||||||||||||||||||
Interest, net of foreign taxes withheld | 34 | 24 | 52 | �� | 33 | 33 | 156,611 | 176 | 342 | |||||||||||||||||||||||
Total Investment Income | 3,993,648 | 3,760,029 | 9,478,203 | 6,327,195 | 1,967,462 | 161,509 | 80,923 | 2,822,247 | ||||||||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||||||||||
Advisory fees | 235,026 | 270,099 | 867,438 | 825,437 | 344,090 | 90,796 | 141,674 | 527,666 | ||||||||||||||||||||||||
Administration fees | 352,540 | 405,148 | 1,301,156 | 1,238,156 | 516,135 | 136,195 | 70,837 | 243,538 | ||||||||||||||||||||||||
Support services expenses | 34,690 | 41,447 | 130,912 | 122,652 | 50,442 | 29,056 | 11,572 | 45,699 | ||||||||||||||||||||||||
Custodian fees and expenses | 11,585 | 11,585 | 11,585 | 11,585 | 11,585 | 18,940 | 31,739 | 97,389 | ||||||||||||||||||||||||
Shareholder report expenses | 16,186 | 19,627 | 62,824 | 59,043 | 24,405 | 8,772 | 4,555 | 15,965 | ||||||||||||||||||||||||
Distribution and/or service fees | ||||||||||||||||||||||||||||||||
Class A | 123,765 | 143,073 | 480,143 | 459,291 | 208,840 | 113,496 | 59,031 | 202,949 | ||||||||||||||||||||||||
Class B (1) | 107,551 | 158,203 | 545,084 | 587,602 | 245,697 | — | — | — | ||||||||||||||||||||||||
Class C (1) | 515,444 | 537,742 | 1,670,897 | 1,588,818 | 592,950 | — | — | — | ||||||||||||||||||||||||
Class R (1) | 28,538 | 41,128 | 100,317 | 56,800 | 23,223 | — | — | — | ||||||||||||||||||||||||
Transfer agency out-of-pocket expenses | 55,838 | 70,817 | 238,676 | 237,946 | 99,434 | 26,233 | 12,182 | 41,628 | ||||||||||||||||||||||||
Registration fees | 60,441 | 57,081 | 73,541 | 66,763 | 58,263 | 27,803 | 17,330 | 18,857 | ||||||||||||||||||||||||
Legal, audit and tax service fees | 37,582 | 43,108 | 134,514 | 127,163 | 52,185 | 20,073 | 7,311 | 24,761 | ||||||||||||||||||||||||
Trustees’ compensation and expenses | 8,153 | 9,887 | 31,584 | 29,780 | 12,296 | 3,544 | 2,067 | 7,173 | ||||||||||||||||||||||||
Money market government insurance expenses | — | — | — | — | — | 8,449 | — | — | ||||||||||||||||||||||||
Other | 15,811 | 19,902 | 59,322 | 58,584 | 26,428 | 13,341 | 9,973 | 37,870 | ||||||||||||||||||||||||
Total Expenses | 1,603,150 | 1,828,847 | 5,707,993 | 5,469,620 | 2,265,973 | 496,698 | 368,271 | 1,263,495 | ||||||||||||||||||||||||
Advisory Fee Waiver | — | — | — | — | — | (89,072 | ) | — | — | |||||||||||||||||||||||
Adviser Reimbursement and/or Administrator Reduction | (592,826 | ) | (678,602 | ) | (2,044,114 | ) | (1,951,672 | ) | (851,173 | ) | (244,871 | ) | (96,729 | ) | (289,342 | ) | ||||||||||||||||
Distribution and/or Service Fees Waiver | (293,781 | ) | (337,622 | ) | (1,084,295 | ) | (1,031,795 | ) | (430,111 | ) | (1,073 | ) | — | — | ||||||||||||||||||
Net Expenses | 716,543 | 812,623 | 2,579,584 | 2,486,153 | 984,689 | 161,682 | 271,542 | 974,153 | ||||||||||||||||||||||||
NET INVESTMENT INCOME (LOSS) | 3,277,105 | 2,947,406 | 6,898,619 | 3,841,042 | 982,773 | (173 | ) | (190,619 | ) | 1,848,094 | ||||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||||||||||||||
Investment securities from affiliated mutual fund investments | (3,451,303 | ) | (5,734,197 | ) | (18,338,640 | ) | (31,546,000 | ) | (25,184,842 | ) | — | — | — | |||||||||||||||||||
Investment security transactions | 382 | 450 | 1,471 | 1,424 | 601 | 201 | 64,515 | (24,534,842 | ) | |||||||||||||||||||||||
Futures contracts and swap transactions | — | — | — | — | — | — | — | 208,833 | ||||||||||||||||||||||||
Foreign currency transactions | — | — | — | — | — | — | — | (768,503 | ) | |||||||||||||||||||||||
Capital gain distributions from affiliated mutual fund investments | 1,083,793 | 907,255 | 1,841,055 | 941,373 | 255,908 | — | — | — | ||||||||||||||||||||||||
Net Realized Gain (Loss) | (2,367,128 | ) | (4,826,492 | ) | (16,496,114 | ) | (30,603,203 | ) | (24,928,333 | ) | 201 | 64,515 | (25,094,512 | ) | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||||||||||||||||||
Investment securities from affiliated mutual fund investments | 19,660,083 | 33,278,746 | 138,905,984 | 175,714,887 | 94,510,444 | — | — | — | ||||||||||||||||||||||||
Investment securities | — | — | — | — | — | — | 11,316,545 | 57,580,414 | ||||||||||||||||||||||||
Futures contracts and swaps | — | — | — | — | — | — | — | (4,451 | ) | |||||||||||||||||||||||
Foreign currencies | — | — | — | — | — | — | — | 110,984 | ||||||||||||||||||||||||
Change in Net Unrealized Appreciation (Depreciation) | 19,660,083 | 33,278,746 | 138,905,984 | 175,714,887 | 94,510,444 | — | 11,316,545 | 57,686,947 | ||||||||||||||||||||||||
NET GAIN | 17,292,955 | 28,452,254 | 122,409,870 | 145,111,684 | 69,582,111 | 201 | 11,381,060 | 32,592,435 | ||||||||||||||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 20,570,060 | $ | 31,399,660 | $ | 129,308,489 | $ | 148,952,726 | $ | 70,564,884 | $ | 28 | $ | 11,190,441 | $ | 34,440,529 | ||||||||||||||||
Foreign taxes withheld on dividends and interest | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 393,446 | ||||||||||||||||
(1) | Class B, C and R Shares are offered to the PL Portfolio Optimization Funds only. |
See Notes to Financial Statements | D-7 |
PACIFIC LIFE FUNDS
STATEMENTS OF OPERATIONS (Continued)
FOR THE YEAR ENDED MARCH 31, 2010
STATEMENTS OF OPERATIONS (Continued)
FOR THE YEAR ENDED MARCH 31, 2010
PL Large-Cap | PL Short Duration | PL Floating | PL Mid-Cap | PL International | PL Small-Cap | PL Main Street | ||||||||||||||||||||||||||
Value | Bond | Rate Loan | PL Growth LT | Equity | Large-Cap | Value | Core | |||||||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||||||||||||||
Dividends, net of foreign taxes withheld | $ | 3,298,562 | $ | — | $ | — | $ | 1,025,839 | $ | 1,361,712 | $ | 2,349,178 | $ | 1,026,836 | $ | 2,212,936 | ||||||||||||||||
Dividends from mutual fund investments | 5,594 | 4,239 | — | 387 | 4,243 | 1,687 | 2,392 | 4,958 | ||||||||||||||||||||||||
Interest, net of foreign taxes withheld | 196 | 1,698,198 | 2,485,341 | 1,918 | — | 1,123 | 36 | 407 | ||||||||||||||||||||||||
Total Investment Income | 3,304,352 | 1,702,437 | 2,485,341 | 1,028,144 | 1,365,955 | 2,351,988 | 1,029,264 | 2,218,301 | ||||||||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||||||||||
Advisory fees | 788,318 | 243,833 | 306,367 | 437,487 | 540,887 | 750,826 | 247,594 | 527,410 | ||||||||||||||||||||||||
Administration fees | 363,839 | 182,875 | 122,547 | 238,629 | 249,640 | 264,997 | 99,037 | 351,607 | ||||||||||||||||||||||||
Support services expenses | 44,099 | 28,508 | 24,457 | 38,197 | 39,147 | 37,001 | 15,044 | 50,109 | ||||||||||||||||||||||||
Custodian fees and expenses | 18,913 | 23,530 | 19,597 | 53,873 | 23,845 | 115,355 | 26,500 | 70,167 | ||||||||||||||||||||||||
Shareholder report expenses | 17,270 | 9,654 | 6,383 | 14,585 | 13,238 | 14,899 | 5,905 | 18,995 | ||||||||||||||||||||||||
Distribution and/or service fees — Class A only | 303,199 | 152,396 | 102,122 | 198,858 | 208,034 | 220,831 | 82,531 | 293,006 | ||||||||||||||||||||||||
Transfer agency out-of-pocket expenses | 49,578 | 27,681 | 18,182 | 39,762 | 36,461 | 40,406 | 15,690 | 52,048 | ||||||||||||||||||||||||
Registration fees | 20,295 | 18,293 | 601 | 18,932 | 17,495 | 19,119 | 451 | 1,691 | ||||||||||||||||||||||||
Legal, audit and tax service fees | 39,023 | 19,465 | 16,736 | 25,869 | 26,150 | 28,384 | 15,773 | 37,025 | ||||||||||||||||||||||||
Trustees’ compensation and expenses | 8,446 | 4,769 | 3,144 | 6,793 | 6,273 | 6,932 | 2,701 | 8,981 | ||||||||||||||||||||||||
Offering expenses | — | — | 1,704 | — | — | — | — | — | ||||||||||||||||||||||||
Other | 18,380 | 32,824 | 7,431 | 18,794 | 14,971 | 24,543 | 10,320 | 27,401 | ||||||||||||||||||||||||
Total Expenses | 1,671,360 | 743,828 | 629,271 | 1,091,779 | 1,176,141 | 1,523,293 | 521,546 | 1,438,440 | ||||||||||||||||||||||||
Adviser Reimbursement | (216,004 | ) | (164,724 | ) | (98,235 | ) | (216,805 | ) | (177,580 | ) | (286,639 | ) | (92,384 | ) | (266,417 | ) | ||||||||||||||||
Net Expenses | 1,455,356 | 579,104 | 531,036 | 874,974 | 998,561 | 1,236,654 | 429,162 | 1,172,023 | ||||||||||||||||||||||||
NET INVESTMENT INCOME | 1,848,996 | 1,123,333 | 1,954,305 | 153,170 | 367,394 | 1,115,334 | 600,102 | 1,046,278 | ||||||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||||||||||||||
Investment security transactions | (3,575,409 | ) | 665,825 | 955,953 | (4,303,027 | ) | 2,654,681 | (6,149,990 | ) | (4,303,623 | ) | (14,376,469 | ) | |||||||||||||||||||
Closed short positions | — | (5,192 | ) | — | — | — | — | — | — | |||||||||||||||||||||||
Futures contracts and swap transactions | — | 376,114 | — | — | — | — | — | — | ||||||||||||||||||||||||
Written option transactions | — | — | — | 10,867 | — | — | — | — | ||||||||||||||||||||||||
Foreign currency transactions | 2,121 | — | — | (345,719 | ) | — | 13,603 | — | (1,075 | ) | ||||||||||||||||||||||
Net Realized Gain (Loss) | (3,573,288 | ) | 1,036,747 | 955,953 | (4,637,879 | ) | 2,654,681 | (6,136,387 | ) | (4,303,623 | ) | (14,377,544 | ) | |||||||||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||||||||||||||||||
Investment securities | 40,574,497 | 738,185 | 5,926,475 | 34,146,151 | 35,083,900 | 39,304,143 | 18,077,190 | 56,194,577 | ||||||||||||||||||||||||
Futures contracts and swaps | — | (23,261 | ) | — | — | — | — | — | — | |||||||||||||||||||||||
Foreign currencies | 636 | — | — | 289,374 | — | 9,362 | — | — | ||||||||||||||||||||||||
Change in Net Unrealized Appreciation | 40,575,133 | 714,924 | 5,926,475 | 34,435,525 | 35,083,900 | 39,313,505 | 18,077,190 | 56,194,577 | ||||||||||||||||||||||||
NET GAIN | 37,001,845 | 1,751,671 | 6,882,428 | 29,797,646 | 37,738,581 | 33,177,118 | 13,773,567 | 41,817,033 | ||||||||||||||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 38,850,841 | $ | 2,875,004 | $ | 8,836,733 | $ | 29,950,816 | $ | 38,105,975 | $ | 34,292,452 | $ | 14,373,669 | $ | 42,863,311 | ||||||||||||||||
Foreign taxes withheld on dividends and interest | $ | 79,568 | $ | — | $ | — | $ | 59,694 | $ | — | $ | 399,478 | $ | 4,564 | $ | 4,042 | ||||||||||||||||
See Notes to Financial Statements | D-8 |
PACIFIC LIFE FUNDS
STATEMENTS OF OPERATIONS (Continued)
FOR THE YEAR ENDED MARCH 31, 2010
STATEMENTS OF OPERATIONS (Continued)
FOR THE YEAR ENDED MARCH 31, 2010
PL Emerging | PL Managed | PL Inflation | PL Large-Cap | PL Mid-Cap | ||||||||||||||||||||||||||||
Markets | Bond | Managed | Growth | PL Comstock | Growth | PL Real Estate | ||||||||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||||||||||||||
Dividends, net of foreign taxes withheld | $ | 765,902 | $ | 278,234 | $ | 5,532 | $ | 374,789 | $ | 2,302,536 | $ | 340,810 | $ | 955,855 | ||||||||||||||||||
Dividends from mutual fund investments | 945 | 1,344 | 1,104 | 4,666 | 3,577 | 1,489 | 1,155 | |||||||||||||||||||||||||
Interest, net of foreign taxes withheld | 3,881 | 6,927,439 | 4,490,165 | 157 | 1,777 | 94 | 190 | |||||||||||||||||||||||||
Total Investment Income | 770,728 | 7,207,017 | 4,496,801 | 379,612 | 2,307,890 | 342,393 | 957,200 | |||||||||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||||||||||
Advisory fees | 320,910 | 755,682 | 467,692 | 316,666 | 776,646 | 290,077 | 275,192 | |||||||||||||||||||||||||
Administration fees | 120,341 | 566,761 | 350,769 | 126,667 | 310,658 | 124,318 | 91,730 | |||||||||||||||||||||||||
Support services expenses | 21,634 | 79,848 | 48,598 | 29,502 | 42,350 | 15,022 | 13,003 | |||||||||||||||||||||||||
Custodian fees and expenses | 218,139 | 77,054 | 41,204 | 21,771 | 31,003 | 35,040 | 23,044 | |||||||||||||||||||||||||
Shareholder report expenses | 7,039 | 29,591 | 17,771 | 7,269 | 16,870 | 5,599 | 5,269 | |||||||||||||||||||||||||
Distribution and/or service fees — Class A only | 100,285 | 472,301 | 292,307 | 105,555 | 258,882 | 103,599 | 76,442 | |||||||||||||||||||||||||
Transfer agency out-of-pocket expenses | 18,483 | 84,848 | 51,914 | 15,809 | 46,339 | 16,633 | 14,024 | |||||||||||||||||||||||||
Registration fees | 564 | 21,122 | 17,837 | 18,093 | 19,845 | 18,018 | 16,243 | |||||||||||||||||||||||||
Legal, audit and tax service fees | 13,683 | 61,344 | 39,649 | 17,784 | 32,141 | 13,031 | 9,275 | |||||||||||||||||||||||||
Trustees’ compensation and expenses | 3,205 | 14,585 | 8,821 | 2,673 | 7,895 | 2,785 | 2,402 | |||||||||||||||||||||||||
Interest on securities sold short | — | 591 | 279 | — | — | — | — | |||||||||||||||||||||||||
Other | 37,190 | 134,337 | 82,969 | 7,602 | 17,972 | 9,080 | 11,179 | |||||||||||||||||||||||||
Total Expenses | 861,473 | 2,298,064 | 1,419,810 | 669,391 | 1,560,601 | 633,202 | 537,803 | |||||||||||||||||||||||||
Advisory Fee Waiver | — | — | — | (6,807 | ) | — | — | — | ||||||||||||||||||||||||
Adviser Reimbursement | (319,937 | ) | (502,729 | ) | (308,763 | ) | (120,503 | ) | (214,415 | ) | (115,208 | ) | (94,439 | ) | ||||||||||||||||||
Net Expenses | 541,536 | 1,795,335 | 1,111,047 | 542,081 | 1,346,186 | 517,994 | 443,364 | |||||||||||||||||||||||||
NET INVESTMENT INCOME (LOSS) | 229,192 | 5,411,682 | 3,385,754 | (162,469 | ) | 961,704 | (175,601 | ) | 513,836 | |||||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||||||||||||||
Investment security transactions (1) | (688,787 | ) | 3,412,972 | 5,366,290 | 3,605,421 | (6,318,818 | ) | 2,086,246 | (6,911,886 | ) | ||||||||||||||||||||||
Closed short positions | — | (197,330 | ) | (73,377 | ) | — | — | — | — | |||||||||||||||||||||||
Futures contracts and swap transactions | — | 6,425,373 | 802,473 | — | — | — | — | |||||||||||||||||||||||||
Written option transactions | — | 714,269 | 64,639 | — | — | — | — | |||||||||||||||||||||||||
Foreign currency transactions | (22,908 | ) | 404,086 | (501,471 | ) | — | — | (11,513 | ) | (6,954 | ) | |||||||||||||||||||||
Net Realized Gain (Loss) | (711,695 | ) | 10,759,370 | 5,658,554 | 3,605,421 | (6,318,818 | ) | 2,074,733 | (6,918,840 | ) | ||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||||||||||||||||||
Investment securities (1) | 23,982,599 | 15,034,971 | (156,726 | ) | 10,919,592 | 47,994,902 | 17,555,353 | 26,782,856 | ||||||||||||||||||||||||
Short positions | — | — | 64,454 | — | — | — | — | |||||||||||||||||||||||||
Futures contracts and swaps | — | (2,471,587 | ) | 541,007 | — | — | — | — | ||||||||||||||||||||||||
Written options | — | 473,104 | 446,291 | — | — | — | — | |||||||||||||||||||||||||
Foreign currencies | 4,705 | 349,656 | 666,596 | — | — | 367 | 1,520 | |||||||||||||||||||||||||
Change in Net Unrealized Appreciation | 23,987,304 | 13,386,144 | 1,561,622 | 10,919,592 | 47,994,902 | 17,555,720 | 26,784,376 | |||||||||||||||||||||||||
NET GAIN | 23,275,609 | 24,145,514 | 7,220,176 | 14,525,013 | 41,676,084 | 19,630,453 | 19,865,536 | |||||||||||||||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 23,504,801 | $ | 29,557,196 | $ | 10,605,930 | $ | 14,362,544 | $ | 42,637,788 | $ | 19,454,852 | $ | 20,379,372 | ||||||||||||||||||
Foreign taxes withheld on dividends and interest | $ | 62,053 | $ | 182 | $ | — | $ | 140 | $ | 34,135 | $ | 4,758 | $ | 12,560 | ||||||||||||||||||
(1) | Realized gains on investment security transactions for the PL Emerging Markets Fund are net of foreign capital gains taxes withheld of $431. Change in unrealized appreciation (depreciation) on securities for the PL Emerging Markets Fund are net of increase in deferred foreign capital gains tax of $12,007. No foreign tax was withheld on realized and change in unrealized capital gain for all other funds. |
See Notes to Financial Statements | D-9 |
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
PL Portfolio Optimization | PL Portfolio Optimization | PL Portfolio Optimization | PL Portfolio Optimization | |||||||||||||||||||||||||||||
Conservative Fund | Moderate-Conservative Fund | Moderate Fund | Moderate-Aggressive Fund | |||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||||
March 31, 2010 | March 31, 2009 | March 31, 2010 | March 31, 2009 | March 31, 2010 | March 31, 2009 | March 31, 2010 | March 31, 2009 | |||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||||||
Net investment income | $ | 3,277,105 | $ | 2,362,950 | $ | 2,947,406 | $ | 2,926,767 | $ | 6,898,619 | $ | 7,610,015 | $ | 3,841,042 | $ | 4,826,825 | ||||||||||||||||
Net realized loss | (2,367,128 | ) | (60,062 | ) | (4,826,492 | ) | (353,635 | ) | (16,496,114 | ) | (489,526 | ) | (30,603,203 | ) | (3,304,606 | ) | ||||||||||||||||
Net change in unrealized appreciation (depreciation) | 19,660,083 | (10,145,423 | ) | 33,278,746 | (27,263,143 | ) | 138,905,984 | (136,212,676 | ) | 175,714,887 | (174,885,094 | ) | ||||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 20,570,060 | (7,842,535 | ) | 31,399,660 | (24,690,011 | ) | 129,308,489 | (129,092,187 | ) | 148,952,726 | (173,362,875 | ) | ||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||||||||||
Class A | (1,710,474 | ) | (1,641,626 | ) | (1,614,143 | ) | (1,920,840 | ) | (4,160,973 | ) | (5,346,894 | ) | (2,602,301 | ) | (3,494,065 | ) | ||||||||||||||||
Class B (1) | (279,755 | ) | (385,564 | ) | (339,598 | ) | (521,376 | ) | (831,429 | ) | (1,186,397 | ) | (446,128 | ) | (770,401 | ) | ||||||||||||||||
Class C (1) | (1,401,774 | ) | (1,708,912 | ) | (1,145,058 | ) | (1,779,875 | ) | (2,524,685 | ) | (3,655,908 | ) | (1,189,157 | ) | (2,126,411 | ) | ||||||||||||||||
Class R (1) | (191,258 | ) | (137,814 | ) | (225,209 | ) | (162,397 | ) | (401,521 | ) | (338,218 | ) | (138,865 | ) | (94,421 | ) | ||||||||||||||||
Net realized gains | ||||||||||||||||||||||||||||||||
Class A | (106,162 | ) | (77,956 | ) | — | (463,724 | ) | — | (3,015,178 | ) | — | (4,360,077 | ) | |||||||||||||||||||
Class B (1) | (23,898 | ) | (17,164 | ) | — | (143,096 | ) | — | (878,553 | ) | — | (1,431,835 | ) | |||||||||||||||||||
Class C (1) | (117,264 | ) | (83,578 | ) | — | (482,131 | ) | — | (2,839,022 | ) | — | (3,957,648 | ) | |||||||||||||||||||
Class R (1) | (12,184 | ) | (4,870 | ) | — | (31,484 | ) | — | (140,300 | ) | — | (90,242 | ) | |||||||||||||||||||
Net Decrease in Net Assets Resulting from Dividends and Distributions to Shareholders | (3,842,769 | ) | (4,057,484 | ) | (3,324,008 | ) | (5,504,923 | ) | (7,918,608 | ) | (17,400,470 | ) | (4,376,451 | ) | (16,325,100 | ) | ||||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||||||||||
Class A | 50,752,914 | 27,737,869 | 40,790,178 | 20,048,875 | 93,246,975 | 54,943,320 | 65,603,064 | 52,531,294 | ||||||||||||||||||||||||
Class B (1) | 5,817,970 | 6,816,787 | 6,690,345 | 4,872,041 | 16,242,994 | 13,122,408 | 11,566,216 | 12,746,047 | ||||||||||||||||||||||||
Class C (1) | 45,745,410 | 30,905,331 | 25,952,657 | 22,047,114 | 75,334,134 | 51,270,473 | 44,834,816 | 44,421,124 | ||||||||||||||||||||||||
Class R (1) | 5,594,582 | 2,738,316 | 6,560,716 | 4,137,093 | 13,380,310 | 10,601,328 | 10,113,346 | 4,839,945 | ||||||||||||||||||||||||
Dividends and distribution reinvestments | ||||||||||||||||||||||||||||||||
Class A | 1,558,693 | 1,606,526 | 1,498,188 | 2,231,636 | 3,842,035 | 7,825,444 | 2,456,310 | 7,460,708 | ||||||||||||||||||||||||
Class B (1) | 280,171 | 369,358 | 318,466 | 623,246 | 790,075 | 1,967,912 | 430,112 | 2,126,032 | ||||||||||||||||||||||||
Class C (1) | 1,341,548 | 1,694,017 | 1,045,210 | 2,094,559 | 2,369,247 | 6,178,571 | 1,134,414 | 5,847,376 | ||||||||||||||||||||||||
Class R (1) | 202,846 | 140,444 | 225,209 | 193,881 | 400,842 | 477,700 | 138,865 | 184,662 | ||||||||||||||||||||||||
Cost of shares repurchased | ||||||||||||||||||||||||||||||||
Class A | (23,064,174 | ) | (15,777,506 | ) | (15,266,919 | ) | (21,201,067 | ) | (40,358,953 | ) | (54,496,673 | ) | (35,242,574 | ) | (50,886,106 | ) | ||||||||||||||||
Class B (1) | (2,677,685 | ) | (2,532,332 | ) | (3,115,431 | ) | (4,731,976 | ) | (7,808,728 | ) | (12,097,503 | ) | (7,692,928 | ) | (11,843,706 | ) | ||||||||||||||||
Class C (1) | (24,597,878 | ) | (15,279,732 | ) | (14,008,363 | ) | (18,337,675 | ) | (37,125,941 | ) | (54,334,855 | ) | (30,185,514 | ) | (40,731,429 | ) | ||||||||||||||||
Class R (1) | (1,796,648 | ) | (906,046 | ) | (2,898,487 | ) | (1,441,555 | ) | (7,339,654 | ) | (2,927,683 | ) | (7,037,738 | ) | (621,833 | ) | ||||||||||||||||
Net Increase in Net Assets from Capital Share Transactions | 59,157,749 | 37,513,032 | 47,791,769 | 10,536,172 | 112,973,336 | 22,530,442 | 56,118,389 | 26,074,114 | ||||||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | 75,885,040 | 25,613,013 | 75,867,421 | (19,658,762 | ) | 234,363,217 | (123,962,215 | ) | 200,694,664 | (163,613,861 | ) | |||||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||||||
Beginning of Year | 81,980,555 | 56,367,542 | 97,058,275 | 116,717,037 | 313,307,335 | 437,269,550 | 295,420,077 | 459,033,938 | ||||||||||||||||||||||||
End of Year | $ | 157,865,595 | $ | 81,980,555 | $ | 172,925,696 | $ | 97,058,275 | $ | 547,670,552 | $ | 313,307,335 | $ | 496,114,741 | $ | 295,420,077 | ||||||||||||||||
Undistributed Net Investment Income | $ | 778,905 | $ | 303,757 | $ | 1,497,808 | $ | 1,228,258 | $ | 4,542,909 | $ | 4,260,234 | $ | 3,042,265 | $ | 2,957,061 | ||||||||||||||||
(1) | Effective June 23, 2008, Class B, C and R shares are offered to the PL Portfolio Optimization Funds only (see Note 1 in Notes to Financial Statements). |
See Notes to Financial Statements | D-10 |
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
PL Portfolio Optimization | PL Money Market | PL Small-Cap Growth | PL International Value | |||||||||||||||||||||||||||||
Aggressive Fund | Fund | Fund (1) | Fund (1) | |||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||||
March 31, 2010 | March 31, 2009 | March 31, 2010 | March 31, 2009 | March 31, 2010 | March 31, 2009 | March 31, 2010 | March 31, 2009 | |||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||||||
Net investment income (loss) | $ | 982,773 | $ | 996,098 | $ | (173 | ) | $ | 549,555 | $ | (190,619 | ) | $ | (294,542 | ) | $ | 1,848,094 | $ | 2,935,308 | |||||||||||||
Net realized gain (loss) | (24,928,333 | ) | (6,742,002 | ) | 201 | 999 | 64,515 | (9,372,520 | ) | (25,094,512 | ) | (23,884,057 | ) | |||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 94,510,444 | (82,036,121 | ) | — | — | 11,316,545 | (2,691,164 | ) | 57,686,947 | (48,978,708 | ) | |||||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 70,564,884 | (87,782,025 | ) | 28 | 550,554 | 11,190,441 | (12,358,226 | ) | 34,440,529 | (69,927,457 | ) | |||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||||||||||
Class A | (843,794 | ) | — | (10,057 | ) | (549,555 | ) | — | — | (1,330,371 | ) | (2,617,399 | ) | |||||||||||||||||||
Class B (2) | (69,556 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||
Class C (2) | (153,091 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||
Class R (2) | (40,677 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||
Net realized gains | ||||||||||||||||||||||||||||||||
Class A | — | (2,731,262 | ) | — | — | — | — | — | (20,366 | ) | ||||||||||||||||||||||
Class B (2) | — | (856,254 | ) | — | — | — | — | — | — | |||||||||||||||||||||||
Class C (2) | — | (2,100,835 | ) | — | — | — | — | — | — | |||||||||||||||||||||||
Class R (2) | — | (47,288 | ) | — | — | — | — | — | — | |||||||||||||||||||||||
Net Decrease in Net Assets Resulting from Dividends and Distributions to Shareholders | (1,107,118 | ) | (5,735,639 | ) | (10,057 | ) | (549,555 | ) | — | — | (1,330,371 | ) | (2,637,765 | ) | ||||||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||||||||||
Class A | 27,309,375 | 28,434,551 | 52,775,972 | 95,268,593 | 3,883,828 | 5,483,255 | 17,693,878 | 34,071,651 | ||||||||||||||||||||||||
Class B (2) | 4,468,034 | 5,179,113 | — | — | — | 933 | — | 12,969 | ||||||||||||||||||||||||
Class C (2) | 19,255,411 | 19,826,235 | — | — | — | 488 | — | 1,889 | ||||||||||||||||||||||||
Class R (2) | 3,407,327 | 2,236,681 | — | — | — | — | — | — | ||||||||||||||||||||||||
Dividends and distribution reinvestments | ||||||||||||||||||||||||||||||||
Class A | 807,649 | 2,643,614 | 9,957 | 507,236 | — | — | 1,329,963 | 2,631,723 | ||||||||||||||||||||||||
Class B (2) | 66,789 | 819,198 | — | — | — | — | — | — | ||||||||||||||||||||||||
Class C (2) | 147,013 | 2,031,218 | — | — | — | — | — | — | ||||||||||||||||||||||||
Class R (2) | 40,677 | 47,288 | — | — | — | — | — | — | ||||||||||||||||||||||||
Cost of shares repurchased | ||||||||||||||||||||||||||||||||
Class A | (22,695,126 | ) | (23,039,029 | ) | (73,530,933 | ) | (82,989,302 | ) | (13,429,355 | ) | (6,926,273 | ) | (44,454,169 | ) | (10,927,150 | ) | ||||||||||||||||
Class B | (3,834,070 | ) | (3,906,713 | ) | — | — | — | (8,001 | ) | — | (22,749 | ) | ||||||||||||||||||||
Class C | (19,134,707 | ) | (19,576,097 | ) | — | — | — | (58,646 | ) | — | (131,720 | ) | ||||||||||||||||||||
Class R | (2,846,769 | ) | (419,159 | ) | — | — | — | — | — | — | ||||||||||||||||||||||
Share class conversions | ||||||||||||||||||||||||||||||||
Class A (2) | — | — | — | — | — | 625,267 | — | 1,304,727 | ||||||||||||||||||||||||
Class B (2) | — | — | — | — | — | (374,698 | ) | — | (508,837 | ) | ||||||||||||||||||||||
Class C (2) | — | — | — | — | — | (250,569 | ) | — | (795,890 | ) | ||||||||||||||||||||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | 6,991,603 | 14,276,900 | (20,745,004 | ) | 12,786,527 | (9,545,527 | ) | (1,508,244 | ) | (25,430,328 | ) | 25,636,613 | ||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | 76,449,369 | (79,240,764 | ) | (20,755,033 | ) | 12,787,526 | 1,644,914 | (13,866,470 | ) | 7,679,830 | (46,928,609 | ) | ||||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||||||
Beginning of Year | 123,673,384 | 202,914,148 | 55,423,957 | 42,636,431 | 24,046,483 | 37,912,953 | 78,604,103 | 125,532,712 | ||||||||||||||||||||||||
End of Year | $ | 200,122,753 | $ | 123,673,384 | $ | 34,668,924 | $ | 55,423,957 | $ | 25,691,397 | $ | 24,046,483 | $ | 86,283,933 | $ | 78,604,103 | ||||||||||||||||
Undistributed/Accumulated Net Investment Income (Loss) | $ | 1,132,279 | $ | 1,100,813 | $ | (3,665 | ) | $ | 9,970 | $ | (1,955 | ) | $ | (5,351 | ) | $ | 302,691 | $ | 357,602 | |||||||||||||
(1) | Class B and Class C Shares were converted to Class A Shares on June 23, 2008 (see Note 1 in Notes to Financial Statements). | |
(2) | Effective June 23, 2008, Class B, C and R shares are offered to the PL Portfolio Optimization Funds only (see Note 1 in Notes to Financial Statements). |
See Notes to Financial Statements | D-11 |
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
PL Large-Cap Value | PL Short Duration Bond | PL Floating Rate Loan | PL Growth LT | |||||||||||||||||||||||||||||
Fund (1) | Fund (1) | Fund | Fund (1) | |||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Period Ended | Year Ended | Year Ended | |||||||||||||||||||||||||
March 31, 2010 | March 31, 2009 | March 31, 2010 | March 31, 2009 | March 31, 2010 | March 31, 2009 (2) | March 31, 2010 | March 31, 2009 | |||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||||||
Net investment income | $ | 1,848,996 | $ | 1,252,666 | $ | 1,123,333 | $ | 2,001,475 | $ | 1,954,305 | $ | 1,420,624 | $ | 153,170 | $ | 269,224 | ||||||||||||||||
Net realized gain (loss) | (3,573,288 | ) | (13,051,311 | ) | 1,036,747 | (138,682 | ) | 955,953 | (2,103,313 | ) | (4,637,879 | ) | (22,379,999 | ) | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 40,575,133 | (22,878,180 | ) | 714,924 | (1,719,200 | ) | 5,926,475 | (4,645,876 | ) | 34,435,525 | (20,212,126 | ) | ||||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 38,850,841 | (34,676,825 | ) | 2,875,004 | 143,593 | 8,836,733 | (5,328,565 | ) | 29,950,816 | (42,322,901 | ) | |||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||||||||||
Class A | (1,750,061 | ) | (963,279 | ) | (1,199,020 | ) | (1,955,303 | ) | (1,975,960 | ) | (1,416,589 | ) | (1,426,742 | ) | — | |||||||||||||||||
Class B | — | — | — | (177 | ) | — | — | — | — | |||||||||||||||||||||||
Class C | — | — | — | (164 | ) | — | — | — | — | |||||||||||||||||||||||
Net realized gains | ||||||||||||||||||||||||||||||||
Class A | — | (78,133 | ) | — | (2,091,716 | ) | — | — | — | (1,903,771 | ) | |||||||||||||||||||||
Net Decrease in Net Assets Resulting from Dividends and Distributions to Shareholders | (1,750,061 | ) | (1,041,412 | ) | (1,199,020 | ) | (4,047,360 | ) | (1,975,960 | ) | (1,416,589 | ) | (1,426,742 | ) | (1,903,771 | ) | ||||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||||||||||
Class A | 62,793,290 | 32,783,087 | 35,040,145 | 9,690,468 | 21,175,293 | 38,826,706 | 12,826,646 | 42,232,556 | ||||||||||||||||||||||||
Class B | — | 891 | — | — | — | — | — | 945 | ||||||||||||||||||||||||
Class C | — | 4,759 | — | 2,046 | — | — | — | 1,963 | ||||||||||||||||||||||||
Dividends and distribution reinvestments | ||||||||||||||||||||||||||||||||
Class A | 1,748,702 | 1,039,920 | 1,198,965 | 4,047,008 | 1,975,960 | 1,416,589 | 1,426,397 | 1,901,816 | ||||||||||||||||||||||||
Class B | — | — | — | 177 | — | — | — | — | ||||||||||||||||||||||||
Class C | — | — | — | 152 | — | — | — | — | ||||||||||||||||||||||||
Cost of shares repurchased | ||||||||||||||||||||||||||||||||
Class A | (2,262,396 | ) | (5,390,569 | ) | (9,596,640 | ) | (46,232,179 | ) | (4,701,222 | ) | (5,687,085 | ) | (27,715,411 | ) | (3,658,479 | ) | ||||||||||||||||
Class B | — | (75,841 | ) | — | — | — | — | — | (3,740 | ) | ||||||||||||||||||||||
Class C | — | (196,162 | ) | — | (16,783 | ) | — | — | — | (33,231 | ) | |||||||||||||||||||||
Share class conversions | ||||||||||||||||||||||||||||||||
Class A (1) | — | 1,315,179 | — | 69,326 | — | — | — | 731,518 | ||||||||||||||||||||||||
Class B (1) | — | (487,057 | ) | — | (39,693 | ) | — | — | — | (403,971 | ) | |||||||||||||||||||||
Class C (1) | — | (828,122 | ) | — | (29,633 | ) | — | — | — | (327,547 | ) | |||||||||||||||||||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | 62,279,596 | 28,166,085 | 26,642,470 | (32,509,111 | ) | 18,450,031 | 34,556,210 | (13,462,368 | ) | 40,441,830 | ||||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | 99,380,376 | (7,552,152 | ) | 28,318,454 | (36,412,878 | ) | 25,310,804 | 27,811,056 | 15,061,706 | (3,784,842 | ) | |||||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||||||
Beginning of Period/Year | 62,931,333 | 70,483,485 | 47,355,202 | 83,768,080 | 27,811,056 | — | 74,157,751 | 77,942,593 | ||||||||||||||||||||||||
End of Period/Year | $ | 162,311,709 | $ | 62,931,333 | $ | 75,673,656 | $ | 47,355,202 | $ | 53,121,860 | $ | 27,811,056 | $ | 89,219,457 | $ | 74,157,751 | ||||||||||||||||
Undistributed/Accumulated Net Investment Income (Loss) | $ | 462,889 | $ | 361,833 | $ | 10,068 | $ | 2,835 | $ | 4,749 | $ | 26,404 | $ | (123,728 | ) | $ | 1,422,768 | |||||||||||||||
(1) | Class B and C shares were converted to Class A shares on June 23, 2008 (see Note 1 in Notes to Financial Statements). (2) Operations commenced on June 30, 2008. |
See Notes to Financial Statements | D-12 |
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
PL Mid-Cap Equity | PL International Large-Cap | PL Small-Cap | PL Main Street Core | |||||||||||||||||||||||||||||
Fund (1), (2) | Fund (2) | Value Fund | Fund | |||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||||
March 31, 2010 | March 31, 2009 | March 31, 2010 | March 31, 2009 | March 31, 2010 | March 31, 2009 | March 31, 2010 | March 31, 2009 | |||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||||||
Net investment income | $ | 367,394 | $ | 762,482 | $ | 1,115,334 | $ | 1,158,337 | $ | 600,102 | $ | 676,961 | $ | 1,046,278 | $ | 1,115,871 | ||||||||||||||||
Net realized gain (loss) | 2,654,681 | (25,067,427 | ) | (6,136,387 | ) | (7,194,722 | ) | (4,303,623 | ) | (5,606,856 | ) | (14,377,544 | ) | (13,983,275 | ) | |||||||||||||||||
Net change in unrealized appreciation (depreciation) | 35,083,900 | (10,884,258 | ) | 39,313,505 | (36,679,372 | ) | 18,077,190 | (10,487,601 | ) | 56,194,577 | (35,210,467 | ) | ||||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 38,105,975 | (35,189,203 | ) | 34,292,452 | (42,715,757 | ) | 14,373,669 | (15,417,496 | ) | 42,863,311 | (48,077,871 | ) | ||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||||||||||
Class A | (432,366 | ) | (881,742 | ) | (975,278 | ) | (406,311 | ) | (491,572 | ) | (543,357 | ) | (1,045,156 | ) | (1,021,270 | ) | ||||||||||||||||
Net realized gains | ||||||||||||||||||||||||||||||||
Class A | — | (5,998 | ) | — | (781,483 | ) | — | — | — | — | ||||||||||||||||||||||
Net Decrease in Net Assets Resulting from Dividends and Distributions to Shareholders | (432,366 | ) | (887,740 | ) | (975,278 | ) | (1,187,794 | ) | (491,572 | ) | (543,357 | ) | (1,045,156 | ) | (1,021,270 | ) | ||||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||||||||||
Class A | 8,843,524 | 16,998,453 | 20,864,545 | 16,839,960 | 4,741,243 | 26,354,167 | 25,816,890 | 24,569,857 | ||||||||||||||||||||||||
Class B | — | 1,150 | — | 17,226 | — | — | — | — | ||||||||||||||||||||||||
Class C | — | 66 | — | 5,667 | — | — | — | — | ||||||||||||||||||||||||
Dividends and distribution reinvestments | ||||||||||||||||||||||||||||||||
Class A | 432,363 | 887,735 | 975,153 | 1,186,517 | 491,572 | 543,357 | 1,045,156 | 1,021,270 | ||||||||||||||||||||||||
Cost of shares repurchased | ||||||||||||||||||||||||||||||||
Class A | (4,434,390 | ) | (8,086,875 | ) | (12,278,526 | ) | (6,188,203 | ) | (7,959,638 | ) | (3,030,610 | ) | (7,912,859 | ) | (3,167,112 | ) | ||||||||||||||||
Class B | — | (25 | ) | — | (600 | ) | — | — | — | — | ||||||||||||||||||||||
Class C | — | (11,832 | ) | — | (81,491 | ) | — | — | — | — | ||||||||||||||||||||||
Share class conversions | ||||||||||||||||||||||||||||||||
Class A (2) | — | 210,133 | — | 1,115,829 | — | — | — | — | ||||||||||||||||||||||||
Class B (2) | — | (60,101 | ) | — | (608,612 | ) | — | — | — | — | ||||||||||||||||||||||
Class C (2) | — | (150,032 | ) | — | (507,217 | ) | — | — | — | — | ||||||||||||||||||||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | 4,841,497 | 9,788,672 | 9,561,172 | 11,779,076 | (2,726,823 | ) | 23,866,914 | 18,949,187 | 22,424,015 | |||||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | 42,515,106 | (26,288,271 | ) | 42,878,346 | (32,124,475 | ) | 11,155,274 | 7,906,061 | 60,767,342 | (26,675,126 | ) | |||||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||||||
Beginning of Year | 59,135,047 | 85,423,318 | 65,123,856 | 97,248,331 | 27,017,894 | 19,111,833 | 85,261,070 | 111,936,196 | ||||||||||||||||||||||||
End of Year | $ | 101,650,153 | $ | 59,135,047 | $ | 108,002,202 | $ | 65,123,856 | $ | 38,173,168 | $ | 27,017,894 | $ | 146,028,412 | $ | 85,261,070 | ||||||||||||||||
Undistributed Net Investment Income | $ | 46,170 | $ | 111,142 | $ | 923,664 | $ | 770,005 | $ | 78,140 | $ | 83,827 | $ | 94,313 | $ | 295,838 | ||||||||||||||||
(1) | Prior to July 1, 2008, the PL Mid-Cap Equity Fund was named the PL Mid-Cap Value Fund. | |
(2) | Class B and C shares were converted to Class A shares on June 23, 2008 (see Note 1 in Notes to Financial Statements). |
See Notes to Financial Statements | D-13 |
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
PL Emerging Markets | PL Managed Bond | PL Inflation Managed | PL Large-Cap Growth | |||||||||||||||||||||||||||||
Fund | Fund (1) | Fund (1) | Fund (1) | |||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||||
March 31, 2010 | March 31, 2009 | March 31, 2010 | March 31, 2009 | March 31, 2010 | March 31, 2009 | March 31, 2010 | March 31, 2009 | |||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||||||
Net investment income (loss) | $ | 229,192 | $ | 442,624 | $ | 5,411,682 | $ | 7,072,229 | $ | 3,385,754 | $ | 3,961,251 | $ | (162,469 | ) | $ | (133,537 | ) | ||||||||||||||
Net realized gain (loss) | (711,695 | ) | (3,452,033 | ) | 10,759,370 | 5,076,618 | 5,658,554 | (10,185,425 | ) | 3,605,421 | (8,422,999 | ) | ||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 23,987,304 | (16,342,343 | ) | 13,386,144 | (14,540,979 | ) | 1,561,622 | 921,629 | 10,919,592 | (1,983,894 | ) | |||||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 23,504,801 | (19,351,752 | ) | 29,557,196 | (2,392,132 | ) | 10,605,930 | (5,302,545 | ) | 14,362,544 | (10,540,430 | ) | ||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||||||||||
Class A | (243,918 | ) | (306,483 | ) | (9,085,139 | ) | (8,944,449 | ) | (4,584,817 | ) | (4,178,065 | ) | — | — | ||||||||||||||||||
Class B | — | — | — | (3,708 | ) | — | (1,803 | ) | — | — | ||||||||||||||||||||||
Class C | — | — | — | (8,415 | ) | — | (4,855 | ) | — | — | ||||||||||||||||||||||
Net realized gains | ||||||||||||||||||||||||||||||||
Class A | — | (6,235,734 | ) | (4,569,759 | ) | (7,903,449 | ) | — | (7,952,335 | ) | — | — | ||||||||||||||||||||
Net Decrease in Net Assets Resulting from Dividends and Distributions to Shareholders | (243,918 | ) | (6,542,217 | ) | (13,654,898 | ) | (16,860,021 | ) | (4,584,817 | ) | (12,137,058 | ) | — | — | ||||||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||||||||||
Class A | 5,677,562 | 6,701,740 | 76,725,391 | 27,329,169 | 62,656,627 | 11,788,650 | 32,510,333 | 3,318,893 | ||||||||||||||||||||||||
Class B | — | — | — | 10,549 | — | 260 | — | 1,647 | ||||||||||||||||||||||||
Class C | — | — | — | 2,266 | — | 1,070 | — | 1,242 | ||||||||||||||||||||||||
Dividends and distribution reinvestments | ||||||||||||||||||||||||||||||||
Class A | 243,918 | 6,542,217 | 13,624,292 | 16,807,322 | 4,569,314 | 12,088,166 | — | — | ||||||||||||||||||||||||
Class B | — | — | — | 3,464 | — | 1,614 | — | — | ||||||||||||||||||||||||
Class C | — | — | — | 8,080 | — | 4,303 | — | — | ||||||||||||||||||||||||
Cost of shares repurchased | ||||||||||||||||||||||||||||||||
Class A | (12,289,022 | ) | (4,162,422 | ) | (8,018,991 | ) | (65,643,296 | ) | (5,059,940 | ) | (50,421,261 | ) | (2,281,361 | ) | (3,413,704 | ) | ||||||||||||||||
Class B | — | — | — | (8,663 | ) | — | (126,125 | ) | — | (8,980 | ) | |||||||||||||||||||||
Class C | — | — | — | (321,532 | ) | — | (80,992 | ) | — | (95,193 | ) | |||||||||||||||||||||
Share class conversions | ||||||||||||||||||||||||||||||||
Class A (1) | — | — | — | 2,590,719 | — | 2,785,176 | — | 981,076 | ||||||||||||||||||||||||
Class B (1) | — | — | — | (824,773 | ) | — | (718,824 | ) | — | (406,919 | ) | |||||||||||||||||||||
Class C (1) | — | — | — | (1,765,946 | ) | — | (2,066,352 | ) | — | (574,157 | ) | |||||||||||||||||||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | (6,367,542 | ) | 9,081,535 | 82,330,692 | (21,812,641 | ) | 62,166,001 | (26,744,315 | ) | 30,228,972 | (196,095 | ) | ||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | 16,893,341 | (16,812,434 | ) | 98,232,990 | (41,064,794 | ) | 68,187,114 | (44,183,918 | ) | 44,591,516 | (10,736,525 | ) | ||||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||||||
Beginning of Year | 30,820,279 | 47,632,713 | 137,724,489 | 178,789,283 | 81,266,045 | 125,449,963 | 16,514,591 | 27,251,116 | ||||||||||||||||||||||||
End of Year | $ | 47,713,620 | $ | 30,820,279 | $ | 235,957,479 | $ | 137,724,489 | $ | 149,453,159 | $ | 81,266,045 | $ | 61,106,107 | $ | 16,514,591 | ||||||||||||||||
Undistributed/Accumulated Net Investment Income (Loss) | $ | (7,231 | ) | $ | (9,143 | ) | $ | 543,826 | $ | 1,030,686 | $ | 607,209 | $ | 1,554,305 | $ | (6,156 | ) | $ | (15,182 | ) | ||||||||||||
(1) | Class B and C shares were converted to Class A shares on June 23, 2008 (see Note 1 in Notes to Financial Statements). |
See Notes to Financial Statements | D-14 |
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
PL Comstock | PL Mid-Cap Growth | PL Real Estate | ||||||||||||||||||||||
Fund (1) | Fund (1) | Fund (1) | ||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
March 31, 2010 | March 31, 2009 | March 31, 2010 | March 31, 2009 | March 31, 2010 | March 31, 2009 | |||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||
Net investment income (loss) | $ | 961,704 | $ | 1,688,483 | $ | (175,601 | ) | $ | (183,547 | ) | $ | 513,836 | $ | 564,693 | ||||||||||
Net realized gain (loss) | (6,318,818 | ) | (31,371,559 | ) | 2,074,733 | 741,438 | (6,918,840 | ) | (6,933,772 | ) | ||||||||||||||
Net change in unrealized appreciation (depreciation) | 47,994,902 | (19,223,029 | ) | 17,555,720 | (11,370,006 | ) | 26,784,376 | (16,677,191 | ) | |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 42,637,788 | (48,906,105 | ) | 19,454,852 | (10,812,115 | ) | 20,379,372 | (23,046,270 | ) | |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||
Class A | (1,052,848 | ) | (1,691,349 | ) | — | — | (485,508 | ) | (587,647 | ) | ||||||||||||||
Net realized gains | ||||||||||||||||||||||||
Class A | — | — | (614,615 | ) | (3,021,703 | ) | — | — | ||||||||||||||||
Return of capital | ||||||||||||||||||||||||
Class A | — | — | — | — | — | (23,684 | ) | |||||||||||||||||
Net Decrease in Net Assets Resulting from Dividends and Distributions to Shareholders | (1,052,848 | ) | (1,691,349 | ) | (614,615 | ) | (3,021,703 | ) | (485,508 | ) | (611,331 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||
Class A | 17,633,612 | 23,688,364 | 20,304,644 | 4,565,953 | 5,319,973 | 10,981,327 | ||||||||||||||||||
Class B | — | 1,314 | — | 5,481 | — | 1,095 | ||||||||||||||||||
Class C | — | 5,632 | — | 6,579 | — | 1,831 | ||||||||||||||||||
Dividends and distribution reinvestments | ||||||||||||||||||||||||
Class A | 1,052,607 | 1,690,697 | 613,939 | 3,003,467 | 485,465 | 611,317 | ||||||||||||||||||
Class C | — | — | — | 16 | — | — | ||||||||||||||||||
Cost of shares repurchased | ||||||||||||||||||||||||
Class A | (6,963,843 | ) | (25,297,002 | ) | (3,637,248 | ) | (26,866,051 | ) | (10,121,953 | ) | (5,342,911 | ) | ||||||||||||
Class B | — | (30,433 | ) | — | (39,846 | ) | — | (466 | ) | |||||||||||||||
Class C | — | (134,206 | ) | — | (194,930 | ) | — | (6,890 | ) | |||||||||||||||
Share class conversions | ||||||||||||||||||||||||
Class A (1) | — | 1,054,821 | — | 1,945,550 | — | 304,189 | ||||||||||||||||||
Class B (1) | — | (467,415 | ) | — | (1,041,725 | ) | — | (95,040 | ) | |||||||||||||||
Class C (1) | — | (587,406 | ) | — | (903,825 | ) | — | (209,149 | ) | |||||||||||||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | 11,722,376 | (75,634 | ) | 17,281,335 | (19,519,331 | ) | (4,316,515 | ) | 6,245,303 | |||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | 53,307,316 | (50,673,088 | ) | 36,121,572 | (33,353,149 | ) | 15,577,349 | (17,412,298 | ) | |||||||||||||||
NET ASSETS | ||||||||||||||||||||||||
Beginning of Year | 74,861,803 | 125,534,891 | 18,872,697 | 52,225,846 | 20,774,677 | 38,186,975 | ||||||||||||||||||
End of Year | $ | 128,169,119 | $ | 74,861,803 | $ | 54,994,269 | $ | 18,872,697 | $ | 36,352,026 | $ | 20,774,677 | ||||||||||||
Undistributed/Accumulated Net Investment Income (Loss) | $ | 233,651 | $ | 324,795 | $ | (8,296 | ) | $ | (11,865 | ) | $ | 23,386 | $ | (1,638 | ) | |||||||||
(1) | Class B and C shares were converted to Class A shares on June 23, 2008 (see Note 1 in Notes to Financial Statements). |
See Notes to Financial Statements | D-15 |
PACIFIC LIFE FUNDS
STATEMENT OF CASH FLOWS (1)
FOR THE YEAR ENDED MARCH 31, 2010
FOR THE YEAR ENDED MARCH 31, 2010
PL Floating | ||||
Rate Loan | ||||
Fund | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net increase in net assets from operations | $ | 8,836,733 | ||
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities: | ||||
Purchases of long-term securities | (59,979,990 | ) | ||
Proceeds from disposition of long-term securities | 43,367,666 | |||
Net purchases of short-term securities | (7,897,717 | ) | ||
Increase in dividends and interest receivable | (90,572 | ) | ||
Increase in receivable for securities sold | (3,069,233 | ) | ||
Increase in due from adviser | (22,578 | ) | ||
Decrease in prepaid expenses and other assets | 326 | |||
Increase in payable for securities purchased | 5,910,908 | |||
Increase in accrued advisory fees | 14,526 | |||
Increase in accrued administration fees | 5,811 | |||
Increase in accrued support service expenses | 1,460 | |||
Increase in accrued custodian fees and expenses | 2,823 | |||
Increase in accrued legal, audit and tax service fees | 533 | |||
Increase in deferred trustee compensation and expenses | 81 | |||
Increase in distribution and/or service fees | 1,170 | |||
Increase in accrued transfer agency out-of-pocket expenses | 582 | |||
Decrease in accrued other liabilities | (1,537 | ) | ||
Net amortization on investments | (745,319 | ) | ||
Net realized gain on investment security transactions | (955,953 | ) | ||
Net unrealized appreciation on investment securities | (5,926,475 | ) | ||
Net cash flow used in operating activities | (20,546,755 | ) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: (2) | ||||
Proceeds from shares sold | 21,070,952 | |||
Payment of shares redeemed | (4,993,824 | ) | ||
Net cash flow provided by financing activities | 16,077,128 | |||
NET DECREASE IN CASH | (4,469,627 | ) | ||
CASH: | ||||
Beginning of the year | 4,474,067 | |||
End of the year | $ | 4,440 | ||
(1) | Information on financial transactions which have been settled through the receipt or disbursement of cash is presented in the Statement of Cash Flows. The cash amount shown in the Statement of Cash Flows is the amount included within the Statement of Assets and Liabilities and includes cash on hand at its custodian bank and does not include any short-term investments. The PL Floating Rate Loan Fund has not met the exemption criteria under the Financial Accounting Standards Board Accounting Standards Codification Topic 230, Statement of Cash Flows, and therefore includes a Statement of Cash Flows. All other funds have met the exemption criteria. | |
(2) | Non-cash financing activities include reinvestment of dividends of $1,975,960. |
See Notes to Financial Statements | D-16 |
[THIS PAGE INTENTIONALLY LEFT BLANK]
PACIFIC LIFE FUNDS
FINANCIAL HIGHLIGHTS
Selected per share, ratios and supplemental data for each year or period ended were as follows:
Selected per share, ratios and supplemental data for each year or period ended were as follows:
Investment Activities | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios of Expenses | Ratios of Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
After Expense | Before Expense | Ratios of Net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, | Total from | Distributions | Distributions | Net Asset Value, | Net Assets, End of | Reductions to | Reductions to | Investment Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year or | Beginning of Year | Net Investment | Net Realized and | Investment | from Net | from | End of Year or | Year or Period | Average Net | Average Net | to Average Net | Portfolio Turnover | |||||||||||||||||||||||||||||||||||||||||||||||||||
Period Ended | or Period | Income | Unrealized Gain (Loss) | Operations | Investment Income | Capital Gains | Total Distributions | Period | Total Returns (1) | (in thousands) | Assets (2), (3) | Assets (3) | Assets (3) | Rates | |||||||||||||||||||||||||||||||||||||||||||||||||
PL Portfolio Optimization Conservative Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2009 - 3/31/2010 (4) | $ | 8.84 | $ | 0.32 | $ | 1.59 | $ | 1.91 | $ | (0.31 | ) | $ | (0.03 | ) | $ | (0.34 | ) | $ | 10.41 | 21.67 | % | $ | 68,938 | 0.20 | % | 0.95 | % | 3.20 | % | 20.50 | % | |||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 10.55 | 0.37 | (1.50 | ) | (1.13 | ) | (0.55 | ) | (0.03 | ) | (0.58 | ) | 8.84 | (10.78 | %) | 32,817 | 0.16 | % | 0.95 | % | 3.91 | % | 26.41 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 10.51 | 0.34 | 0.19 | 0.53 | (0.35 | ) | (0.14 | ) | (0.49 | ) | 10.55 | 5.15 | % | 24,003 | 0.00 | % | 0.94 | % | 3.20 | % | 43.30 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 10.34 | 0.29 | 0.33 | 0.62 | (0.28 | ) | (0.17 | ) | (0.45 | ) | 10.51 | 6.12 | % | 11,730 | 0.02 | % | 1.37 | % | 2.77 | % | 35.84 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 10.18 | 0.22 | 0.20 | 0.42 | (0.23 | ) | (0.03 | ) | (0.26 | ) | 10.34 | 4.12 | % | 9,887 | 0.03 | % | 1.57 | % | 2.17 | % | 66.26 | % | |||||||||||||||||||||||||||||||||||||||||
Class B: | 4/1/2009 - 3/31/2010 (4) | $ | 8.77 | $ | 0.24 | $ | 1.60 | $ | 1.84 | $ | (0.24 | ) | $ | (0.03 | ) | $ | (0.27 | ) | $ | 10.34 | 21.07 | % | $ | 13,336 | 0.95 | % | 1.70 | % | 2.45 | % | 20.50 | % | |||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 10.49 | 0.30 | (1.50 | ) | (1.20 | ) | (0.49 | ) | (0.03 | ) | (0.52 | ) | 8.77 | (11.51 | %) | 8,306 | 0.91 | % | 1.70 | % | 3.16 | % | 26.41 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 10.46 | 0.26 | 0.19 | 0.45 | (0.28 | ) | (0.14 | ) | (0.42 | ) | 10.49 | 4.42 | % | 4,895 | 0.75 | % | 1.69 | % | 2.45 | % | 43.30 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 10.30 | 0.23 | 0.33 | 0.56 | (0.23 | ) | (0.17 | ) | (0.40 | ) | 10.46 | 5.52 | % | 2,822 | 0.58 | % | 1.93 | % | 2.20 | % | 35.84 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 10.14 | 0.17 | 0.20 | 0.37 | (0.18 | ) | (0.03 | ) | (0.21 | ) | 10.30 | 3.56 | % | 1,923 | 0.53 | % | 2.07 | % | 1.67 | % | 66.26 | % | |||||||||||||||||||||||||||||||||||||||||
Class C: | 4/1/2009 - 3/31/2010 (4) | $ | 8.76 | $ | 0.24 | $ | 1.61 | $ | 1.85 | $ | (0.25 | ) | $ | (0.03 | ) | $ | (0.28 | ) | $ | 10.33 | 21.14 | % | $ | 67,620 | 0.95 | % | 1.70 | % | 2.45 | % | 20.50 | % | |||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 10.49 | 0.30 | (1.51 | ) | (1.21 | ) | (0.49 | ) | (0.03 | ) | (0.52 | ) | 8.76 | (11.63 | %) | 37,659 | 0.91 | % | 1.70 | % | 3.16 | % | 26.41 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 10.45 | 0.26 | 0.20 | 0.46 | (0.28 | ) | (0.14 | ) | (0.42 | ) | 10.49 | 4.48 | % | 25,841 | 0.75 | % | 1.69 | % | 2.45 | % | 43.30 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 10.29 | 0.23 | 0.33 | 0.56 | (0.23 | ) | (0.17 | ) | (0.40 | ) | 10.45 | 5.55 | % | 16,322 | 0.58 | % | 1.93 | % | 2.20 | % | 35.84 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 10.13 | 0.17 | 0.20 | 0.37 | (0.18 | ) | (0.03 | ) | (0.21 | ) | 10.29 | 3.65 | % | 11,342 | 0.53 | % | 2.07 | % | 1.67 | % | 66.26 | % | |||||||||||||||||||||||||||||||||||||||||
Class R: | 4/1/2009 - 3/31/2010 (4) | $ | 8.81 | $ | 0.29 | $ | 1.60 | $ | 1.89 | $ | (0.29 | ) | $ | (0.03 | ) | $ | (0.32 | ) | $ | 10.38 | 21.53 | % | $ | 7,972 | 0.45 | % | 1.20 | % | 2.95 | % | 20.50 | % | |||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 10.53 | 0.34 | (1.50 | ) | (1.16 | ) | (0.53 | ) | (0.03 | ) | (0.56 | ) | 8.81 | (11.07 | %) | 3,197 | 0.41 | % | 1.20 | % | 3.66 | % | 26.41 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 10.50 | 0.31 | 0.19 | 0.50 | (0.33 | ) | (0.14 | ) | (0.47 | ) | 10.53 | 4.90 | % | 1,629 | 0.25 | % | 1.19 | % | 2.95 | % | 43.30 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 10.33 | 0.28 | 0.34 | 0.62 | (0.28 | ) | (0.17 | ) | (0.45 | ) | 10.50 | 6.13 | % | 216 | 0.10 | % | 1.43 | % | 2.68 | % | 35.84 | % | |||||||||||||||||||||||||||||||||||||||||
9/30/2005 - 3/31/2006 (4) | 10.35 | 0.11 | 0.09 | 0.20 | (0.21 | ) | (0.01 | ) | (0.22 | ) | 10.33 | 1.90 | % | 10 | 0.03 | % | 1.57 | % | 2.17 | % | 66.26 | % | |||||||||||||||||||||||||||||||||||||||||
PL Portfolio Optimization Moderate-Conservative Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2009 - 3/31/2010 (4) | $ | 8.36 | $ | 0.26 | $ | 2.19 | $ | 2.45 | $ | (0.27 | ) | $ | — | $ | (0.27 | ) | $ | 10.54 | 29.60 | % | $ | 78,160 | 0.20 | % | 0.95 | % | 2.58 | % | 10.42 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 10.96 | 0.30 | (2.36 | ) | (2.06 | ) | (0.44 | ) | (0.10 | ) | (0.54 | ) | 8.36 | (19.15 | %) | 39,518 | 0.14 | % | 0.92 | % | 3.10 | % | 31.68 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 11.21 | 0.28 | (0.01 | ) | 0.27 | (0.34 | ) | (0.18 | ) | (0.52 | ) | 10.96 | 2.31 | % | 50,389 | 0.00 | % | 0.82 | % | 2.50 | % | 10.38 | % | ||||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 10.87 | 0.23 | 0.61 | 0.84 | (0.25 | ) | (0.25 | ) | (0.50 | ) | 11.21 | 7.93 | % | 36,345 | 0.01 | % | 1.18 | % | 2.13 | % | 18.25 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 10.33 | 0.18 | 0.57 | 0.75 | (0.19 | ) | (0.02 | ) | (0.21 | ) | 10.87 | 7.23 | % | 28,292 | 0.02 | % | 1.32 | % | 1.72 | % | 37.91 | % | |||||||||||||||||||||||||||||||||||||||||
Class B: | 4/1/2009 - 3/31/2010 (4) | $ | 8.30 | $ | 0.18 | $ | 2.20 | $ | 2.38 | $ | (0.21 | ) | $ | — | $ | (0.21 | ) | $ | 10.47 | 28.87 | % | $ | 19,202 | 0.95 | % | 1.70 | % | 1.83 | % | 10.42 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 10.89 | 0.23 | (2.36 | ) | (2.13 | ) | (0.36 | ) | (0.10 | ) | (0.46 | ) | 8.30 | (19.85 | %) | 11,943 | 0.89 | % | 1.67 | % | 2.35 | % | 31.68 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 11.15 | 0.20 | (0.02 | ) | 0.18 | (0.26 | ) | (0.18 | ) | (0.44 | ) | 10.89 | 1.53 | % | 15,092 | 0.75 | % | 1.57 | % | 1.75 | % | 10.38 | % | ||||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 10.82 | 0.17 | 0.61 | 0.78 | (0.20 | ) | (0.25 | ) | (0.45 | ) | 11.15 | 7.39 | % | 12,098 | 0.58 | % | 1.75 | % | 1.56 | % | 18.25 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 10.29 | 0.13 | 0.56 | 0.69 | (0.14 | ) | (0.02 | ) | (0.16 | ) | 10.82 | 6.70 | % | 9,058 | 0.52 | % | 1.82 | % | 1.22 | % | 37.91 | % | |||||||||||||||||||||||||||||||||||||||||
Class C: | 4/1/2009 - 3/31/2010 (4) | $ | 8.30 | $ | 0.18 | $ | 2.20 | $ | 2.38 | $ | (0.21 | ) | $ | — | $ | (0.21 | ) | $ | 10.47 | 28.87 | % | $ | 65,086 | 0.95 | % | 1.70 | % | 1.83 | % | 10.42 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 10.89 | 0.22 | (2.35 | ) | (2.13 | ) | (0.36 | ) | (0.10 | ) | (0.46 | ) | 8.30 | (19.84 | %) | 40,640 | 0.89 | % | 1.67 | % | 2.35 | % | 31.68 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 11.16 | 0.20 | (0.02 | ) | 0.18 | (0.27 | ) | (0.18 | ) | (0.45 | ) | 10.89 | 1.51 | % | 48,205 | 0.75 | % | 1.57 | % | 1.75 | % | 10.38 | % | ||||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 10.83 | 0.17 | 0.61 | 0.78 | (0.20 | ) | (0.25 | ) | (0.45 | ) | 11.16 | 7.38 | % | 30,464 | 0.58 | % | 1.75 | % | 1.56 | % | 18.25 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 10.29 | 0.13 | 0.57 | 0.70 | (0.14 | ) | (0.02 | ) | (0.16 | ) | 10.83 | 6.80 | % | 23,860 | 0.52 | % | 1.82 | % | 1.22 | % | 37.91 | % | |||||||||||||||||||||||||||||||||||||||||
Class R: | 4/1/2009 - 3/31/2010 (4) | $ | 8.34 | $ | 0.23 | $ | 2.20 | $ | 2.43 | $ | (0.26 | ) | $ | — | $ | (0.26 | ) | $ | 10.51 | 29.32 | % | $ | 10,478 | 0.45 | % | 1.20 | % | 2.33 | % | 10.42 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 10.94 | 0.27 | (2.36 | ) | (2.09 | ) | (0.41 | ) | (0.10 | ) | (0.51 | ) | 8.34 | (19.36 | %) | 4,957 | 0.39 | % | 1.17 | % | 2.85 | % | 31.68 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 11.20 | 0.25 | (0.01 | ) | 0.24 | (0.32 | ) | (0.18 | ) | (0.50 | ) | 10.94 | 2.03 | % | 3,031 | 0.25 | % | 1.07 | % | 2.25 | % | 10.38 | % | ||||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 10.87 | 0.22 | 0.61 | 0.83 | (0.25 | ) | (0.25 | ) | (0.50 | ) | 11.20 | 7.84 | % | 1,373 | 0.10 | % | 1.25 | % | 2.04 | % | 18.25 | % | |||||||||||||||||||||||||||||||||||||||||
9/30/2005 - 3/31/2006 (4) | 10.67 | 0.09 | 0.29 | 0.38 | (0.17 | ) | (0.01 | ) | (0.18 | ) | 10.87 | 3.63 | % | 290 | 0.02 | % | 1.32 | % | 1.72 | % | 37.91 | % | |||||||||||||||||||||||||||||||||||||||||
See Notes to Financial Statements | See explanation of references on E-6 |
E-1
PACIFIC LIFE FUNDS
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period ended were as follows:
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period ended were as follows:
Investment Activities | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios of Expenses | Ratios of Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
After Expense | Before Expense | Ratios of Net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, | Total from | Distributions | Distributions | Net Asset Value, | Net Assets, End of | Reductions to | Reductions to | Investment Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year or | Beginning of Year | Net Investment | Net Realized and | Investment | from Net | from | End of Year or | Year or Period | Average Net | Average Net | to Average Net | Portfolio Turnover | |||||||||||||||||||||||||||||||||||||||||||||||||||
Period Ended | or Period | Income | Unrealized Gain (Loss) | Operations | Investment Income | Capital Gains | Total Distributions | Period | Total Returns (1) | (in thousands) | Assets (2), (3) | Assets (3) | Assets (3) | Rates | |||||||||||||||||||||||||||||||||||||||||||||||||
PL Portfolio Optimization Moderate Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2009 - 3/31/2010 (4) | $ | 7.96 | $ | 0.20 | $ | 2.87 | $ | 3.07 | $ | (0.22 | ) | $ | — | $ | (0.22 | ) | $ | 10.81 | 38.85 | % | $ | 247,213 | 0.20 | % | 0.92 | % | 1.99 | % | 9.43 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 11.51 | 0.23 | (3.30 | ) | (3.07 | ) | (0.31 | ) | (0.17 | ) | (0.48 | ) | 7.96 | (27.25 | %) | 137,205 | 0.14 | % | 0.89 | % | 2.35 | % | 25.95 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 12.08 | 0.23 | (0.17 | ) | 0.06 | (0.35 | ) | (0.28 | ) | (0.63 | ) | 11.51 | 0.28 | % | 192,707 | 0.00 | % | 0.78 | % | 1.90 | % | 5.01 | % | ||||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 11.56 | 0.18 | 0.88 | 1.06 | (0.22 | ) | (0.32 | ) | (0.54 | ) | 12.08 | 9.41 | % | 149,905 | 0.00 | % | 1.06 | % | 1.51 | % | 8.24 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 10.54 | 0.15 | 1.06 | 1.21 | (0.16 | ) | (0.03 | ) | (0.19 | ) | 11.56 | 11.58 | % | 95,079 | 0.00 | % | 1.20 | % | 1.33 | % | 26.54 | % | |||||||||||||||||||||||||||||||||||||||||
Class B: | 4/1/2009 - 3/31/2010 (4) | $ | 7.90 | $ | 0.12 | $ | 2.87 | $ | 2.99 | $ | (0.15 | ) | $ | — | $ | (0.15 | ) | $ | 10.74 | 38.14 | % | $ | 65,336 | 0.95 | % | 1.67 | % | 1.24 | % | 9.43 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 11.44 | 0.16 | (3.30 | ) | (3.14 | ) | (0.23 | ) | (0.17 | ) | (0.40 | ) | 7.90 | (27.95 | %) | 40,658 | 0.89 | % | 1.64 | % | 1.60 | % | 25.95 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 12.02 | 0.14 | (0.17 | ) | (0.03 | ) | (0.27 | ) | (0.28 | ) | (0.55 | ) | 11.44 | (0.48 | %) | 56,387 | 0.75 | % | 1.53 | % | 1.15 | % | 5.01 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 11.51 | 0.11 | 0.89 | 1.00 | (0.17 | ) | (0.32 | ) | (0.49 | ) | 12.02 | 8.88 | % | 43,774 | 0.57 | % | 1.63 | % | 0.94 | % | 8.24 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 10.50 | 0.09 | 1.07 | 1.16 | (0.12 | ) | (0.03 | ) | (0.15 | ) | 11.51 | 11.10 | % | 31,687 | 0.50 | % | 1.70 | % | 0.83 | % | 26.54 | % | |||||||||||||||||||||||||||||||||||||||||
Class C: | 4/1/2009 - 3/31/2010 (4) | $ | 7.88 | $ | 0.12 | $ | 2.88 | $ | 3.00 | $ | (0.15 | ) | $ | — | $ | (0.15 | ) | $ | 10.73 | 38.36 | % | $ | 210,889 | 0.95 | % | 1.67 | % | 1.24 | % | 9.43 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 11.42 | 0.16 | (3.30 | ) | (3.14 | ) | (0.23 | ) | (0.17 | ) | (0.40 | ) | 7.88 | (28.02 | %) | 123,122 | 0.89 | % | 1.64 | % | 1.60 | % | 25.95 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 12.00 | 0.14 | (0.17 | ) | (0.03 | ) | (0.27 | ) | (0.28 | ) | (0.55 | ) | 11.42 | (0.46 | %) | 180,421 | 0.75 | % | 1.53 | % | 1.15 | % | 5.01 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 11.50 | 0.11 | 0.88 | 0.99 | (0.17 | ) | (0.32 | ) | (0.49 | ) | 12.00 | 8.82 | % | 134,695 | 0.57 | % | 1.63 | % | 0.94 | % | 8.24 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 10.49 | 0.09 | 1.07 | 1.16 | (0.12 | ) | (0.03 | ) | (0.15 | ) | 11.50 | 11.12 | % | 88,774 | 0.50 | % | 1.70 | % | 0.83 | % | 26.54 | % | |||||||||||||||||||||||||||||||||||||||||
Class R: | 4/1/2009 - 3/31/2010 (4) | $ | 7.93 | $ | 0.17 | $ | 2.87 | $ | 3.04 | $ | (0.20 | ) | $ | — | $ | (0.20 | ) | $ | 10.77 | 38.61 | % | $ | 24,232 | 0.45 | % | 1.17 | % | 1.74 | % | 9.43 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 11.48 | 0.20 | (3.29 | ) | (3.09 | ) | (0.29 | ) | (0.17 | ) | (0.46 | ) | 7.93 | (27.48 | %) | 12,323 | 0.39 | % | 1.14 | % | 2.10 | % | 25.95 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 12.06 | 0.20 | (0.17 | ) | 0.03 | (0.33 | ) | (0.28 | ) | (0.61 | ) | 11.48 | 0.05 | % | 7,754 | 0.25 | % | 1.03 | % | 1.65 | % | 5.01 | % | ||||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 11.56 | 0.16 | 0.88 | 1.04 | (0.22 | ) | (0.32 | ) | (0.54 | ) | 12.06 | 9.24 | % | 2,332 | 0.11 | % | 1.13 | % | 1.40 | % | 8.24 | % | |||||||||||||||||||||||||||||||||||||||||
9/30/2005 - 3/31/2006 (4) | 11.05 | 0.07 | 0.60 | 0.67 | (0.15 | ) | (0.01 | ) | (0.16 | ) | 11.56 | 6.16 | % | 13 | 0.00 | % | 1.20 | % | 1.33 | % | 26.54 | % | |||||||||||||||||||||||||||||||||||||||||
PL Portfolio Optimization Moderate-Aggressive Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2009 - 3/31/2010 (4) | $ | 7.31 | $ | 0.13 | $ | 3.38 | $ | 3.51 | $ | (0.14 | ) | $ | — | $ | (0.14 | ) | $ | 10.68 | 48.26 | % | $ | 225,236 | 0.20 | % | 0.92 | % | 1.33 | % | 13.96 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 11.79 | 0.16 | (4.21 | ) | (4.05 | ) | (0.19 | ) | (0.24 | ) | (0.43 | ) | 7.31 | (35.15 | %) | 128,976 | 0.14 | % | 0.89 | % | 1.63 | % | 22.98 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 12.74 | 0.17 | (0.41 | ) | (0.24 | ) | (0.33 | ) | (0.38 | ) | (0.71 | ) | 11.79 | (2.25 | %) | 203,091 | 0.00 | % | 0.78 | % | 1.30 | % | 5.05 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 12.02 | 0.12 | 1.12 | 1.24 | (0.20 | ) | (0.32 | ) | (0.52 | ) | 12.74 | 10.57 | % | 158,754 | 0.00 | % | 1.05 | % | 1.02 | % | 6.96 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 10.66 | 0.10 | 1.44 | 1.54 | (0.13 | ) | (0.05 | ) | (0.18 | ) | 12.02 | 14.59 | % | 93,498 | 0.00 | % | 1.19 | % | 0.86 | % | 27.98 | % | |||||||||||||||||||||||||||||||||||||||||
Class B: | 4/1/2009 - 3/31/2010 (4) | $ | 7.21 | $ | 0.05 | $ | 3.38 | $ | 3.43 | $ | (0.07 | ) | $ | — | $ | (0.07 | ) | $ | 10.57 | 47.84 | % | $ | 68,751 | 0.95 | % | 1.67 | % | 0.58 | % | 13.96 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 11.69 | 0.08 | (4.19 | ) | (4.11 | ) | (0.13 | ) | (0.24 | ) | (0.37 | ) | 7.21 | (35.97 | %) | 43,587 | 0.89 | % | 1.64 | % | 0.88 | % | 22.98 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 12.67 | 0.07 | (0.41 | ) | (0.34 | ) | (0.26 | ) | (0.38 | ) | (0.64 | ) | 11.69 | (3.04 | %) | 68,162 | 0.75 | % | 1.53 | % | 0.55 | % | 5.05 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 11.97 | 0.05 | 1.13 | 1.18 | (0.16 | ) | (0.32 | ) | (0.48 | ) | 12.67 | 10.11 | % | 56,938 | 0.57 | % | 1.62 | % | 0.44 | % | 6.96 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 10.63 | 0.04 | 1.45 | 1.49 | (0.10 | ) | (0.05 | ) | (0.15 | ) | 11.97 | 14.09 | % | 35,154 | 0.50 | % | 1.69 | % | 0.36 | % | 27.98 | % | |||||||||||||||||||||||||||||||||||||||||
Class C: | 4/1/2009 - 3/31/2010 (4) | $ | 7.18 | $ | 0.05 | $ | 3.39 | $ | 3.44 | $ | (0.07 | ) | $ | — | $ | (0.07 | ) | $ | 10.55 | 48.18 | % | $ | 189,917 | 0.95 | % | 1.67 | % | 0.58 | % | 13.96 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 11.67 | 0.08 | (4.20 | ) | (4.12 | ) | (0.13 | ) | (0.24 | ) | (0.37 | ) | 7.18 | (36.12 | %) | 117,549 | 0.89 | % | 1.64 | % | 0.88 | % | 22.98 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 12.65 | 0.07 | (0.41 | ) | (0.34 | ) | (0.26 | ) | (0.38 | ) | (0.64 | ) | 11.67 | (3.03 | %) | 184,634 | 0.75 | % | 1.53 | % | 0.55 | % | 5.05 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 11.95 | 0.05 | 1.13 | 1.18 | (0.16 | ) | (0.32 | ) | (0.48 | ) | 12.65 | 10.12 | % | 143,281 | 0.57 | % | 1.62 | % | 0.44 | % | 6.96 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 10.61 | 0.04 | 1.45 | 1.49 | (0.10 | ) | (0.05 | ) | (0.15 | ) | 11.95 | 14.13 | % | 90,306 | 0.50 | % | 1.69 | % | 0.36 | % | 27.98 | % | |||||||||||||||||||||||||||||||||||||||||
Class R: | 4/1/2009 - 3/31/2010 (4) | $ | 7.30 | $ | 0.10 | $ | 3.39 | $ | 3.49 | $ | (0.12 | ) | $ | — | $ | (0.12 | ) | $ | 10.67 | 48.07 | % | $ | 12,211 | 0.45 | % | 1.17 | % | 1.08 | % | 13.96 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 11.79 | 0.13 | (4.21 | ) | (4.08 | ) | (0.17 | ) | (0.24 | ) | (0.41 | ) | 7.30 | (35.38 | %) | 5,307 | 0.39 | % | 1.14 | % | 1.38 | % | 22.98 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 12.74 | 0.13 | (0.39 | ) | (0.26 | ) | (0.31 | ) | (0.38 | ) | (0.69 | ) | 11.79 | (2.39 | %) | 3,147 | 0.25 | % | 1.03 | % | 1.05 | % | 5.05 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 12.02 | 0.11 | 1.13 | 1.24 | (0.20 | ) | (0.32 | ) | (0.52 | ) | 12.74 | 10.57 | % | 971 | 0.10 | % | 1.12 | % | 0.92 | % | 6.96 | % | |||||||||||||||||||||||||||||||||||||||||
9/30/2005 - 3/31/2006 (4) | 11.28 | 0.05 | 0.83 | 0.88 | (0.13 | ) | (0.01 | ) | (0.14 | ) | 12.02 | 7.92 | % | 11 | 0.00 | % | 1.19 | % | 0.86 | % | 27.98 | % | |||||||||||||||||||||||||||||||||||||||||
See Notes to Financial Statements | See explanation of references on E-6 |
E-2
PACIFIC LIFE FUNDS
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period ended were as follows:
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period ended were as follows:
Investment Activities | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios of Expenses | Ratios of Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
After Expense | Before Expense | Ratios of Net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, | Total from | Distributions | Distributions | Net Asset Value, | Net Assets, End of | Reductions to | Reductions to | Investment Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year or | Beginning of Year | Net Investment | Net Realized and | Investment | from Net | from | End of Year or | Year or Period | Average Net | Average Net | to Average Net | Portfolio Turnover | |||||||||||||||||||||||||||||||||||||||||||||||||||
Period Ended | or Period | Income (Loss) | Unrealized Gain (Loss) | Operations | Investment Income | Capital Gains | Total Distributions | Period | Total Returns (1) | (in thousands) | Assets (2), (3) | Assets (3) | Assets (3) | Rates | |||||||||||||||||||||||||||||||||||||||||||||||||
PL Portfolio Optimization Aggressive Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2009 - 3/31/2010 (4) | $ | 6.92 | $ | 0.09 | $ | 3.75 | $ | 3.84 | $ | (0.10 | ) | $ | — | $ | (0.10 | ) | $ | 10.66 | 55.84 | % | $ | 98,669 | 0.20 | % | 0.94 | % | 0.94 | % | 25.89 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 12.04 | 0.09 | (4.88 | ) | (4.79 | ) | — | (0.33 | ) | (0.33 | ) | 6.92 | (40.88 | %) | 59,937 | 0.14 | % | 0.92 | % | 0.97 | % | 18.16 | % | ||||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 13.49 | 0.08 | (0.77 | ) | (0.69 | ) | (0.33 | ) | (0.43 | ) | (0.76 | ) | 12.04 | (5.70 | %) | 96,230 | 0.00 | % | 0.80 | % | 0.62 | % | 9.66 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 12.57 | 0.07 | 1.46 | 1.53 | (0.19 | ) | (0.42 | ) | (0.61 | ) | 13.49 | 12.53 | % | 75,546 | 0.00 | % | 1.09 | % | 0.54 | % | 10.14 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 10.75 | 0.05 | 1.94 | 1.99 | (0.11 | ) | (0.06 | ) | (0.17 | ) | 12.57 | 18.59 | % | 39,397 | 0.00 | % | 1.29 | % | 0.42 | % | 42.51 | % | |||||||||||||||||||||||||||||||||||||||||
Class B: | 4/1/2009 - 3/31/2010 (4) | $ | 6.72 | $ | 0.02 | $ | 3.75 | $ | 3.77 | $ | (0.03 | ) | $ | — | $ | (0.03 | ) | $ | 10.46 | 56.15 | % | $ | 28,776 | 0.95 | % | 1.69 | % | 0.19 | % | 25.89 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 11.93 | 0.02 | (4.90 | ) | (4.88 | ) | — | (0.33 | ) | (0.33 | ) | 6.72 | (42.04 | %) | 18,042 | 0.89 | % | 1.67 | % | 0.22 | % | 18.16 | % | ||||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 13.41 | (0.02 | ) | (0.78 | ) | (0.80 | ) | (0.25 | ) | (0.43 | ) | (0.68 | ) | 11.93 | (6.46 | %) | 30,059 | 0.75 | % | 1.55 | % | (0.13 | %) | 9.66 | % | ||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 12.52 | (— | )(5) | 1.46 | 1.46 | (0.15 | ) | (0.42 | ) | (0.57 | ) | 13.41 | 12.00 | % | 23,716 | 0.58 | % | 1.67 | % | (0.04 | %) | 10.14 | % | ||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 10.72 | (0.01 | ) | 1.94 | 1.93 | (0.07 | ) | (0.06 | ) | (0.13 | ) | 12.52 | 18.11 | % | 12,889 | 0.50 | % | 1.79 | % | (0.08 | %) | 42.51 | % | ||||||||||||||||||||||||||||||||||||||||
Class C: | 4/1/2009 - 3/31/2010 (4) | $ | 6.71 | $ | 0.02 | $ | 3.75 | $ | 3.77 | $ | (0.02 | ) | $ | — | $ | (0.02 | ) | $ | 10.46 | 56.11 | % | $ | 68,230 | 0.95 | % | 1.69 | % | 0.19 | % | 25.89 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 11.92 | 0.02 | (4.90 | ) | (4.88 | ) | — | (0.33 | ) | (0.33 | ) | 6.71 | (41.99 | %) | 43,588 | 0.89 | % | 1.67 | % | 0.22 | % | 18.16 | % | ||||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 13.40 | (0.02 | ) | (0.77 | ) | (0.79 | ) | (0.26 | ) | (0.43 | ) | (0.69 | ) | 11.92 | (6.44 | %) | 75,389 | 0.75 | % | 1.55 | % | (0.13 | %) | 9.66 | % | ||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 12.51 | (— | )(5) | 1.46 | 1.46 | (0.15 | ) | (0.42 | ) | (0.57 | ) | 13.40 | 12.01 | % | 55,389 | 0.58 | % | 1.67 | % | (0.04 | %) | 10.14 | % | ||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 10.72 | (0.01 | ) | 1.93 | 1.92 | (0.07 | ) | (0.06 | ) | (0.13 | ) | 12.51 | 18.00 | % | 30,782 | 0.50 | % | 1.79 | % | (0.08 | %) | 42.51 | % | ||||||||||||||||||||||||||||||||||||||||
Class R: | 4/1/2009 - 3/31/2010 (4) | $ | 6.88 | $ | 0.06 | $ | 3.76 | $ | 3.82 | $ | (0.09 | ) | $ | — | $ | (0.09 | ) | $ | 10.61 | 55.70 | % | $ | 4,448 | 0.45 | % | 1.19 | % | 0.69 | % | 25.89 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 12.03 | 0.06 | (4.88 | ) | (4.82 | ) | — | (0.33 | ) | (0.33 | ) | 6.88 | (41.17 | %) | 2,106 | 0.39 | % | 1.17 | % | 0.72 | % | 18.16 | % | ||||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 13.49 | 0.05 | (0.77 | ) | (0.72 | ) | (0.31 | ) | (0.43 | ) | (0.74 | ) | 12.03 | (5.88 | %) | 1,236 | 0.25 | % | 1.05 | % | 0.37 | % | 9.66 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 12.57 | 0.05 | 1.48 | 1.53 | (0.19 | ) | (0.42 | ) | (0.61 | ) | 13.49 | 12.53 | % | 382 | 0.14 | % | 1.17 | % | 0.40 | % | 10.14 | % | |||||||||||||||||||||||||||||||||||||||||
9/30/2005 - 3/31/2006 (4) | 11.50 | 0.02 | 1.17 | 1.19 | (0.11 | ) | (0.01 | ) | (0.12 | ) | 12.57 | 10.44 | % | 11 | 0.00 | % | 1.29 | % | 0.42 | % | 42.51 | % | |||||||||||||||||||||||||||||||||||||||||
PL Money Market Fund (6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2009 - 3/31/2010 | $ | 1.00 | $ | (— | )(5) | $ | — | (5) | $ | — | $ | (— | )(5) | $ | — | $ | (— | )(5) | $ | 1.00 | 0.03 | % | $ | 34,669 | 0.36 | % | 1.09 | % | (— | %)(5) | N/A | |||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 | 1.00 | 0.01 | — | 0.01 | (0.01 | ) | — | (0.01 | ) | 1.00 | 1.27 | % | 55,424 | 0.78 | % | 1.18 | % | 1.22 | % | N/A | |||||||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 | 1.00 | 0.04 | — | 0.04 | (0.04 | ) | — | (0.04 | ) | 1.00 | 3.90 | % | 42,636 | 0.95 | % | 1.28 | % | 3.68 | % | N/A | |||||||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 | 1.00 | 0.04 | — | 0.04 | (0.04 | ) | — | (0.04 | ) | 1.00 | 4.31 | % | 21,098 | 1.02 | % | 1.58 | % | 4.20 | % | N/A | |||||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 | 1.00 | 0.03 | — | 0.03 | (0.03 | ) | — | (0.03 | ) | 1.00 | 2.76 | % | 19,293 | 0.94 | % | 1.79 | % | 2.67 | % | N/A | |||||||||||||||||||||||||||||||||||||||||||
PL Small-Cap Growth Fund (7),(8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2009 - 3/31/2010 (4) | $ | 5.88 | $ | (0.06 | ) | $ | 3.59 | $ | 3.53 | $ | — | $ | — | $ | — | $ | 9.41 | 60.03 | % | $ | 25,691 | 1.15 | % | 1.56 | % | (0.81 | %) | 87.50 | % | |||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 9.12 | (0.07 | ) | (3.17 | ) | (3.24 | ) | — | — | — | 5.88 | (35.53 | %) | 24,046 | 1.28 | % | 1.71 | % | (0.96 | %) | 72.93 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 11.24 | (0.12 | ) | (0.62 | ) | (0.74 | ) | — | (1.38 | ) | (1.38 | ) | 9.12 | (8.81 | %) | 37,258 | 1.55 | % | 1.90 | % | (1.07 | %) | 163.56 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 11.22 | (0.08 | ) | 0.11 | 0.03 | — | (0.01 | ) | (0.01 | ) | 11.24 | 0.28 | % | 41,378 | 1.78 | % | 2.24 | % | (0.74 | %) | 52.87 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 11.78 | (0.10 | ) | 1.62 | 1.52 | — | (2.08 | ) | (2.08 | ) | 11.22 | 15.01 | % | 24,218 | 1.95 | % | 2.95 | % | (0.99 | %) | 132.27 | % | |||||||||||||||||||||||||||||||||||||||||
PL International Value Fund (8),(9) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2009 - 3/31/2010 (4) | $ | 6.14 | $ | 0.19 | $ | 3.00 | $ | 3.19 | $ | (0.14 | ) | $ | — | $ | (0.14 | ) | $ | 9.19 | 52.10 | % | $ | 86,284 | 1.20 | % | 1.56 | % | 2.28 | % | 59.92 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 12.82 | 0.26 | (6.72 | ) | (6.46 | ) | (0.22 | ) | (— | )(5) | (0.22 | ) | 6.14 | (50.74 | %) | 78,604 | 1.27 | % | 1.58 | % | 2.82 | % | 31.43 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 14.39 | 0.22 | (1.38 | ) | (1.16 | ) | (0.13 | ) | (0.28 | ) | (0.41 | ) | 12.82 | (8.27 | %) | 124,055 | 1.40 | % | 1.72 | % | 1.50 | % | 17.40 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 15.30 | 0.16 | 2.48 | 2.64 | (0.14 | ) | (3.41 | ) | (3.55 | ) | 14.39 | 18.40 | % | 77,127 | 1.64 | % | 2.08 | % | 1.04 | % | 108.86 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 13.22 | 0.14 | 2.19 | 2.33 | (0.08 | ) | (0.17 | ) | (0.25 | ) | 15.30 | 17.85 | % | 57,657 | 1.80 | % | 2.28 | % | 0.99 | % | 55.25 | % | |||||||||||||||||||||||||||||||||||||||||
See Notes to Financial Statements | See explanation of references on E-6 |
E-3
PACIFIC LIFE FUNDS
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period ended were as follows:
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period ended were as follows:
Investment Activities | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios of Expenses | Ratios of Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
After Expense | Before Expense | Ratios of Net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, | Total from | Distributions | Distributions | Net Asset Value, | Net Assets, End of | Reductions to | Reductions to | Investment Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year or | Beginning of Year | Net Investment | Net Realized and | Investment | from Net | from | End of Year or | Year or Period | Average Net | Average Net | to Average Net | Portfolio Turnover | |||||||||||||||||||||||||||||||||||||||||||||||||||
Period Ended | or Period | Income (Loss) | Unrealized Gain (Loss) | Operations | Investment Income | Capital Gains | Total Distributions | Period | Total Returns (1) | (in thousands) | Assets (2), (3) | Assets (3) | Assets (3) | Rates | |||||||||||||||||||||||||||||||||||||||||||||||||
PL Large-Cap Value Fund (8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2009 - 3/31/2010 (4) | $ | 7.35 | $ | 0.14 | $ | 3.07 | $ | 3.21 | $ | (0.14 | ) | $ | — | $ | (0.14 | ) | $ | 10.42 | 43.79 | % | $ | 162,312 | 1.20 | % | 1.38 | % | 1.52 | % | 16.28 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 11.59 | 0.16 | (4.27 | ) | (4.11 | ) | (0.12 | ) | (0.01 | ) | (0.13 | ) | 7.35 | (35.61 | %) | 62,931 | 1.25 | % | 1.48 | % | 1.63 | % | 38.49 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 13.03 | 0.10 | (1.21 | ) | (1.11 | ) | (0.08 | ) | (0.25 | ) | (0.33 | ) | 11.59 | (8.80 | %) | 68,901 | 1.40 | % | 1.69 | % | 0.79 | % | 24.35 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 12.67 | 0.06 | 1.37 | 1.43 | (0.04 | ) | (1.03 | ) | (1.07 | ) | 13.03 | 12.09 | % | 56,601 | 1.63 | % | 2.05 | % | 0.50 | % | 19.58 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 11.30 | 0.02 | 1.38 | 1.40 | (0.03 | ) | (— | )(5) | (0.03 | ) | 12.67 | 12.47 | % | 34,459 | 1.80 | % | 2.25 | % | 0.20 | % | 77.07 | % | |||||||||||||||||||||||||||||||||||||||||
PL Short Duration Bond Fund (8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2009 - 3/31/2010 (4) | $ | 9.69 | $ | 0.18 | $ | 0.33 | $ | 0.51 | $ | (0.20 | ) | $ | — | $ | (0.20 | ) | $ | 10.00 | 5.27 | % | $ | 75,674 | 0.95 | % | 1.22 | % | 1.84 | % | 167.12 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 10.22 | 0.32 | (0.25 | ) | 0.07 | (0.31 | ) | (0.29 | ) | (0.60 | ) | 9.69 | 0.75 | % | 47,355 | 1.02 | % | 1.26 | % | 3.20 | % | 146.36 | % | ||||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 9.81 | 0.35 | 0.41 | 0.76 | (0.35 | ) | — | (0.35 | ) | 10.22 | 7.86 | % | 83,683 | �� | 1.15 | % | 1.42 | % | 3.48 | % | 41.74 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 9.76 | 0.32 | 0.04 | 0.36 | (0.31 | ) | — | (0.31 | ) | 9.81 | 3.76 | % | 66,823 | 1.39 | % | 1.75 | % | 3.28 | % | 77.84 | % | ||||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 9.85 | 0.19 | (0.09 | ) | 0.10 | (0.19 | ) | — | (0.19 | ) | 9.76 | 1.03 | % | 44,945 | 1.55 | % | 1.93 | % | 1.97 | % | 91.81 | % | |||||||||||||||||||||||||||||||||||||||||
PL Floating Rate Loan Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2009 - 3/31/2010 (4) | $ | 8.18 | $ | 0.45 | $ | 1.70 | $ | 2.15 | $ | (0.45 | ) | $ | — | $ | (0.45 | ) | $ | 9.88 | 26.70 | % | $ | 53,122 | 1.30 | % | 1.54 | % | 4.78 | % | 118.03 | % | ||||||||||||||||||||||||||||||||
6/30/2008 - 3/31/2009 (4) | 10.00 | 0.39 | (1.82 | ) | (1.43 | ) | (0.39 | ) | — | (0.39 | ) | 8.18 | (14.37 | %) | 27,811 | 1.30 | % | 1.53 | % | 5.90 | % | 56.30 | % | ||||||||||||||||||||||||||||||||||||||||
PL Growth LT Fund (8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2009 - 3/31/2010 (4) | $ | 7.74 | $ | 0.02 | $ | 3.60 | $ | 3.62 | $ | (0.15 | ) | $ | — | $ | (0.15 | ) | $ | 11.21 | 47.26 | % | $ | 89,219 | 1.10 | % | 1.37 | % | 0.19 | % | 60.31 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 12.63 | 0.03 | (4.63 | ) | (4.60 | ) | — | (0.29 | ) | (0.29 | ) | 7.74 | (37.27 | %) | 74,158 | 1.15 | % | 1.42 | % | 0.32 | % | 80.89 | % | ||||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 13.10 | 0.05 | (0.22 | ) | (0.17 | ) | (0.05 | ) | (0.25 | ) | (0.30 | ) | 12.63 | (1.55 | %) | 77,196 | 1.30 | % | 1.66 | % | 0.36 | % | 81.50 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 12.23 | (0.01 | ) | 0.98 | 0.97 | — | (0.10 | ) | (0.10 | ) | 13.10 | 7.95 | % | 61,954 | 1.54 | % | 1.95 | % | (0.08 | %) | 37.99 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 10.64 | (0.05 | ) | 1.64 | 1.59 | — | — | — | 12.23 | 14.94 | % | 43,733 | 1.70 | % | 2.15 | % | (0.44 | %) | 69.48 | % | |||||||||||||||||||||||||||||||||||||||||||
PL Mid-Cap Equity Fund (8),(10) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2009 - 3/31/2010 (4) | $ | 5.33 | $ | 0.03 | $ | 3.34 | $ | 3.37 | $ | (0.04 | ) | $ | — | $ | (0.04 | ) | $ | 8.66 | 63.29 | % | $ | 101,650 | 1.20 | % | 1.41 | % | 0.44 | % | 74.00 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 8.92 | 0.07 | (3.58 | ) | (3.51 | ) | (0.08 | ) | (— | )(5) | (0.08 | ) | 5.33 | (39.44 | %) | 59,135 | 1.26 | % | 1.52 | % | 1.01 | % | 82.26 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 11.62 | 0.06 | (1.61 | ) | (1.55 | ) | (0.03 | ) | (1.12 | ) | (1.15 | ) | 8.92 | (14.81 | %) | 85,208 | 1.40 | % | 1.69 | % | 0.55 | % | 70.09 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 10.54 | (— | )(5) | 1.51 | 1.51 | — | (0.43 | ) | (0.43 | ) | 11.62 | 14.80 | % | 71,181 | 1.60 | % | 2.01 | % | (— | %)(5) | 74.07 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 9.90 | (0.02 | ) | 1.30 | 1.28 | (0.01 | ) | (0.63 | ) | (0.64 | ) | 10.54 | 13.11 | % | 23,992 | 1.80 | % | 2.44 | % | (0.16 | %) | 112.93 | % | ||||||||||||||||||||||||||||||||||||||||
PL International Large-Cap Fund (8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/10/2009 - 3/31/2010 (4) | $ | 9.17 | $ | 0.16 | $ | 4.64 | $ | 4.80 | $ | (0.14 | ) | $ | — | $ | (0.14 | ) | $ | 13.83 | 52.64 | % | $ | 108,002 | 1.40 | % | 1.72 | % | 1.26 | % | 24.61 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 15.55 | 0.17 | (6.37 | ) | (6.20 | ) | (0.06 | ) | (0.12 | ) | (0.18 | ) | 9.17 | (40.24 | %) | 65,124 | 1.46 | % | 1.82 | % | 1.39 | % | 25.95 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 16.64 | 0.19 | (0.34 | ) | (0.15 | ) | (0.15 | ) | (0.79 | ) | (0.94 | ) | 15.55 | (1.17 | %) | 96,049 | 1.60 | % | 1.99 | % | 1.18 | % | 28.23 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 15.45 | 0.28 | 2.49 | 2.77 | (0.30 | ) | (1.28 | ) | (1.58 | ) | 16.64 | 18.70 | % | 76,806 | 1.84 | % | 2.38 | % | 1.77 | % | 47.87 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 12.83 | (— | )(5) | 2.89 | 2.89 | (0.04 | ) | (0.23 | ) | (0.27 | ) | 15.45 | 22.72 | % | 52,728 | 2.00 | % | 2.79 | % | (0.03 | %) | 63.12 | % | ||||||||||||||||||||||||||||||||||||||||
PL Small-Cap Value Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2009 - 3/31/2010 (4) | $ | 5.49 | $ | 0.13 | $ | 3.06 | $ | 3.19 | $ | (0.11 | ) | $ | — | $ | (0.11 | ) | $ | 8.57 | 58.28 | % | $ | 38,173 | 1.30 | % | 1.58 | % | 1.82 | % | 31.57 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 8.80 | 0.16 | (3.34 | ) | (3.18 | ) | (0.13 | ) | — | (0.13 | ) | 5.49 | (36.39 | %) | 27,018 | 1.34 | % | 1.73 | % | 2.21 | % | 47.41 | % | ||||||||||||||||||||||||||||||||||||||||
6/29/2007 - 3/31/2008 (4) | 10.00 | 0.10 | (1.24 | ) | (1.14 | ) | (0.06 | ) | — | (0.06 | ) | 8.80 | (11.47 | %) | 19,112 | 1.50 | % | 2.07 | % | 1.46 | % | 17.98 | % | ||||||||||||||||||||||||||||||||||||||||
See Notes to Financial Statements | See explanation of references on E-6 |
E-4
PACIFIC LIFE FUNDS
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period ended were as follows:
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period ended were as follows:
Investment Activities | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios of Expenses | Ratios of Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
After Expense | Before Expense | Ratios of Net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, | Total from | Distributions | Distributions | Net Asset Value, | Net Assets, End of | Reductions to | Reductions to | Investment Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year or | Beginning of Year | Net Investment | Net Realized and | Investment | from Net | from | End of Year or | Year or Period | Average Net | Average Net | (Loss) to Average Net | Portfolio Turnover | |||||||||||||||||||||||||||||||||||||||||||||||||||
Period Ended | or Period | Income (Loss) | Unrealized Gain (Loss) | Operations | Investment Income | Capital Gains | Total Distributions | Period | Total Returns (1) | (in thousands) | Assets (2), (3) | Assets (3) | Assets (3) | Rates | |||||||||||||||||||||||||||||||||||||||||||||||||
PL Main Street Core Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2009 - 3/31/2010 (4) | $ | 6.11 | $ | 0.07 | $ | 2.89 | $ | 2.96 | $ | (0.07 | ) | $ | — | $ | (0.07 | ) | $ | 9.00 | 48.57 | % | $ | 146,028 | 1.00 | % | 1.23 | % | 0.89 | % | 130.37 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 9.91 | 0.09 | (3.81 | ) | (3.72 | ) | (0.08 | ) | — | (0.08 | ) | 6.11 | (37.66 | %) | 85,261 | 1.06 | % | 1.41 | % | 1.07 | % | 101.22 | % | ||||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 11.46 | 0.08 | (0.94 | ) | (0.86 | ) | (0.08 | ) | (0.61 | ) | (0.69 | ) | 9.91 | (8.29 | %) | 111,936 | 1.20 | % | 1.50 | % | 0.69 | % | 126.84 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 | 10.67 | 0.05 | 0.92 | 0.97 | (0.03 | ) | (0.15 | ) | (0.18 | ) | 11.46 | 9.23 | % | 87,136 | 1.43 | % | 1.88 | % | 0.54 | % | 107.36 | % | |||||||||||||||||||||||||||||||||||||||||
9/30/2005 - 3/31/2006 | 10.00 | 0.01 | 0.67 | 0.68 | (0.01 | ) | — | (0.01 | ) | 10.67 | 6.85 | % | 53,930 | 1.60 | % | 2.00 | % | 0.29 | % | 42.30 | % | ||||||||||||||||||||||||||||||||||||||||||
PL Emerging Markets Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2009 - 3/31/2010 (4) | $ | 6.54 | $ | 0.06 | $ | 5.66 | $ | 5.72 | $ | (0.07 | ) | $ | — | $ | (0.07 | ) | $ | 12.19 | 87.45 | % | $ | 47,714 | 1.35 | % | 2.15 | % | 0.57 | % | 55.24 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 13.58 | 0.11 | (5.39 | ) | (5.28 | ) | (0.07 | ) | (1.69 | ) | (1.76 | ) | 6.54 | (42.31 | %) | 30,820 | 1.42 | % | 2.34 | % | 1.18 | % | 61.50 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 13.01 | 0.07 | 2.32 | 2.39 | (0.05 | ) | (1.77 | ) | (1.82 | ) | 13.58 | 17.21 | % | 47,633 | 1.55 | % | 2.38 | % | 0.46 | % | 60.20 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 | 12.00 | 0.06 | 1.56 | 1.62 | (0.05 | ) | (0.56 | ) | (0.61 | ) | 13.01 | 14.49 | % | 51,376 | 1.78 | % | 2.81 | % | 0.49 | % | 58.31 | % | |||||||||||||||||||||||||||||||||||||||||
9/30/2005 - 3/31/2006 | 10.00 | 0.08 | 2.00 | 2.08 | (0.08 | ) | (— | )(5) | (0.08 | ) | 12.00 | 20.94 | % | 33,476 | 1.95 | % | 5.53 | % | 1.88 | % | 41.88 | % | |||||||||||||||||||||||||||||||||||||||||
PL Managed Bond Fund (8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2009 - 3/31/2010 (4) | $ | 9.70 | $ | 0.30 | $ | 1.48 | $ | 1.78 | $ | (0.50 | ) | $ | (0.23 | ) | $ | (0.73 | ) | $ | 10.75 | 18.68 | % | $ | 235,957 | 0.95 | % | 1.22 | % | 2.86 | % | 351.53 | % | |||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 10.73 | 0.43 | (0.45 | ) | (0.02 | ) | (0.55 | ) | (0.46 | ) | (1.01 | ) | 9.70 | 0.07 | % | 137,724 | 1.01 | % | 1.30 | % | 4.36 | % | 441.01 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 10.16 | 0.42 | 0.53 | 0.95 | (0.37 | ) | (0.01 | ) | (0.38 | ) | 10.73 | 9.44 | % | 175,800 | 1.15 | % | 1.50 | % | 4.05 | % | 424.71 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 9.98 | 0.35 | 0.22 | 0.57 | (0.39 | ) | — | (0.39 | ) | 10.16 | 5.90 | % | 101,940 | 1.39 | % | 1.82 | % | 3.49 | % | 477.64 | % | ||||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 10.03 | 0.29 | (0.07 | ) | 0.22 | (0.27 | ) | — | (0.27 | ) | 9.98 | 2.19 | % | 68,825 | 1.55 | % | 2.00 | % | 2.84 | % | 534.38 | % | |||||||||||||||||||||||||||||||||||||||||
PL Inflation Managed Fund (8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2009 - 3/31/2010 (4) | $ | 9.59 | $ | 0.29 | $ | 0.62 | $ | 0.91 | $ | (0.40 | ) | $ | — | $ | (0.40 | ) | $ | 10.10 | 9.68 | % | $ | 149,453 | 0.95 | % | 1.21 | % | 2.90 | % | 299.61 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 11.08 | 0.39 | (0.80 | ) | (0.41 | ) | (0.41 | ) | (0.67 | ) | (1.08 | ) | 9.59 | (3.85 | %) | 81,266 | 1.01 | % | 1.35 | % | 3.94 | % | 745.76 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 10.13 | 0.49 | 0.95 | 1.44 | (0.49 | ) | — | (0.49 | ) | 11.08 | 14.80 | % | 122,386 | 1.15 | % | 1.49 | % | 4.77 | % | 474.46 | % | ||||||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 10.00 | 0.26 | 0.14 | 0.40 | (0.27 | ) | — | (0.27 | ) | 10.13 | 4.15 | % | 82,340 | 1.39 | % | 1.78 | % | 2.60 | % | 356.40 | % | ||||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 10.51 | 0.33 | (0.36 | ) | (0.03 | ) | (0.47 | ) | (0.01 | ) | (0.48 | ) | 10.00 | (0.44 | %) | 66,103 | 1.55 | % | 1.89 | % | 3.21 | % | 188.82 | % | |||||||||||||||||||||||||||||||||||||||
PL Large-Cap Growth Fund (8),(11) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2009 - 3/31/2010 (4) | $ | 5.44 | $ | (0.03 | ) | $ | 2.30 | $ | 2.27 | $ | — | $ | — | $ | — | $ | 7.71 | 41.73 | % | $ | 61,106 | 1.28 | % | 1.59 | % | (0.38 | %) | 115.83 | % | |||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 9.24 | (0.05 | ) | (3.75 | ) | (3.80 | ) | — | — | — | 5.44 | (41.13 | %) | 16,515 | 1.37 | % | 1.81 | % | (0.61 | %) | 179.61 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 9.43 | (0.08 | ) | (0.11 | ) | (0.19 | ) | — | — | — | 9.24 | (2.01 | %) | 26,235 | 1.50 | % | 1.92 | % | (0.79 | %) | 178.83 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 10.85 | (0.09 | ) | (0.40 | ) | (0.49 | ) | — | (0.93 | ) | (0.93 | ) | 9.43 | (3.80 | %) | 29,713 | 1.73 | % | 2.43 | % | (0.93 | %) | 147.66 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 10.14 | (0.07 | ) | 0.78 | 0.71 | — | — | — | 10.85 | 7.00 | % | 19,366 | 1.90 | % | 2.58 | % | (0.62 | %) | 160.96 | % | |||||||||||||||||||||||||||||||||||||||||||
PL Comstock Fund (8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2009 - 3/31/2010 (4) | $ | 6.95 | $ | 0.09 | $ | 3.74 | $ | 3.83 | $ | (0.09 | ) | $ | — | $ | (0.09 | ) | $ | 10.69 | 55.34 | % | $ | 128,169 | 1.30 | % | 1.51 | % | 0.93 | % | 27.65 | % | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 11.84 | 0.16 | (4.89 | ) | (4.73 | ) | (0.16 | ) | — | (0.16 | ) | 6.95 | (40.11 | %) | 74,862 | 1.37 | % | 1.58 | % | 1.68 | % | 59.96 | % | ||||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 14.11 | 0.15 | (1.95 | ) | (1.80 | ) | (0.12 | ) | (0.35 | ) | (0.47 | ) | 11.84 | (13.16 | %) | 124,271 | 1.50 | % | 1.77 | % | 1.09 | % | 23.28 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 12.92 | 0.12 | 1.55 | 1.67 | (0.11 | ) | (0.37 | ) | (0.48 | ) | 14.11 | 13.21 | % | 83,788 | 1.74 | % | 2.11 | % | 0.92 | % | 40.11 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 12.58 | 0.10 | 0.83 | 0.93 | (0.06 | ) | (0.53 | ) | (0.59 | ) | 12.92 | 7.62 | % | 62,447 | 1.90 | % | 2.25 | % | 0.79 | % | 22.40 | % | |||||||||||||||||||||||||||||||||||||||||
See Notes to Financial Statements | See explanation of references on E-6 |
E-5
PACIFIC LIFE FUNDS
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period ended were as follows:
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period ended were as follows:
Investment Activities | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios of Expenses | Ratios of Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
After Expense | Before Expense | Ratios of Net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, | Total from | Distributions | Distributions | Net Asset Value, | Net Assets, End of | Reductions to | Reductions to | Investment Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year or | Beginning of Year | Net Investment | Net Realized and | Investment | from Net | from | End of Year or | Year or Period | Average Net | Average Net | (Loss) to Average Net | Portfolio Turnover | |||||||||||||||||||||||||||||||||||||||||||||||||||
Period Ended | or Period | Income (Loss) | Unrealized Gain (Loss) | Operations | Investment Income | Capital Gains | Total Distributions | Period | Total Returns (1) | (in thousands) | Assets (2), (3) | Assets (3) | Assets (3) | Rates | |||||||||||||||||||||||||||||||||||||||||||||||||
PL Mid-Cap Growth Fund (8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2009 - 3/31/2010 (4) | $ | 4.98 | ( $0.03 | ) | $ | 3.56 | $ | 3.53 | $ | — | ( $0.10 | ) | ( $0.10 | ) | $ | 8.41 | 70.89 | % | $ | 54,994 | 1.25 | % | 1.53 | % | (0.42 | %) | 31.79 | % | ||||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 9.31 | (0.05 | ) | (3.57 | ) | (3.62 | ) | — | (0.71 | ) | (0.71 | ) | 4.98 | (40.02 | %) | 18,873 | 1.34 | % | 1.80 | % | (0.60 | %) | 47.92 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 10.93 | (0.02 | ) | 0.66 | 0.64 | — | (2.26 | ) | (2.26 | ) | 9.31 | 3.48 | % | 50,189 | 1.45 | % | 1.80 | % | (0.19 | %) | 77.63 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 11.67 | (0.07 | ) | 0.31 | 0.24 | — | (0.98 | ) | (0.98 | ) | 10.93 | 2.64 | % | 63,462 | 1.68 | % | 2.08 | % | (0.64 | %) | 60.08 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 8.93 | (0.11 | ) | 2.85 | 2.74 | — | — | — | 11.67 | 30.68 | % | 39,980 | 1.85 | % | 2.29 | % | (1.04 | %) | 107.64 | % | |||||||||||||||||||||||||||||||||||||||||||
PL Real Estate Fund (8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2009 - 3/31/2010 (4) | $ | 4.60 | $ | 0.12 | $ | 4.64 | $ | 4.76 | ( $0.12 | ) | $ | — | ( $0.12 | ) | $ | 9.24 | 104.32 | % | $ | 36,352 | 1.45 | % | 1.76 | % | 1.68 | % | 26.55 | % | ||||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 (4) | 11.25 | 0.15 | (6.65 | ) | (6.50 | ) | (0.15 | )(12) | — | (0.15 | ) | 4.60 | (58.24 | %) | 20,775 | 1.51 | % | 1.89 | % | 1.79 | % | 42.37 | % | ||||||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 (4) | 14.94 | 0.13 | (2.77 | ) | (2.64 | ) | (0.18 | ) | (0.87 | ) | (1.05 | ) | 11.25 | (18.03 | %) | 37,872 | 1.65 | % | 2.03 | % | 1.02 | % | 34.98 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2006 - 3/31/2007 (4) | 12.89 | 0.04 | 3.01 | 3.05 | (0.05 | ) | (0.95 | ) | (1.00 | ) | 14.94 | 24.19 | % | 31,504 | 1.89 | % | 2.42 | % | 0.27 | % | 36.83 | % | |||||||||||||||||||||||||||||||||||||||||
4/1/2005 - 3/31/2006 (4) | 9.39 | 0.05 | 3.70 | 3.75 | (0.17 | ) | (0.08 | ) | (0.25 | ) | 12.89 | 40.43 | % | 25,552 | 2.05 | % | 2.76 | % | 0.41 | % | 9.81 | % | |||||||||||||||||||||||||||||||||||||||||
(1) | The total returns include reinvestment of all dividends and capital gain distributions, if any, and do not include deductions of any applicable sales charges. Total returns are not annualized for periods less than one full year. | |
(2) | The ratios of expenses after expense reductions to average net assets are after any adviser expense reimbursements, administrator fee reductions, and distributor fee waivers, as discussed in Note 5 to the Financial Statements. Additionally, non 12b-1 service fees for Class A shares were reduced by 0.25% effective January 1, 2007. The expense ratios for all the PL Portfolio Optimization Funds do not include expenses of the Underlying Funds (see Note 1 in Notes to Financial Statements) in which the PL Portfolio Optimization Funds invest. | |
(3) | The ratios are annualized for periods of less than one full year. | |
(4) | Per share net investment income has been calculated using the average shares method. | |
(5) | Amount represents less than $0.005 per share or less than 0.005%. | |
(6) | Class B and C shares were converted to Class A shares on June 29, 2005. | |
(7) | Prior to October 1, 2005, the PL Small-Cap Growth Fund was named the PF AIM Aggressive Growth Fund. | |
(8) | Class B and C shares were converted to Class A shares on June 23, 2008 (see Note 1 in Notes to Financial Statements). | |
(9) | Prior to May 1, 2006, the PL International Value Fund was named PF Lazard International Value Fund. | |
(10) | Prior to July 1, 2008, the PL Mid-Cap Equity Fund was named PL Mid-Cap Value Fund. | |
(11) | Prior to January 1, 2006, the PL Large-Cap Growth Fund was named the PF AIM Blue Chip Fund. | |
(12) | Includes return of capital distribution of $0.01 per share. |
See Notes to Financial Statements
E-6
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
Pacific Life Funds (the “Trust”) is a Delaware statutory trust, which was formed on May 21, 2001, and is registered under the Investment Company Act of 1940 (“1940 Act”), as amended, as an open-end management investment company, and as of March 31, 2010, was comprised of twenty-three separate funds (each individually, a “Fund”, and collectively the “Funds”): PL Portfolio Optimization Conservative Fund, PL Portfolio Optimization Moderate-Conservative Fund, PL Portfolio Optimization Moderate Fund, PL Portfolio Optimization Moderate-Aggressive Fund, PL Portfolio Optimization Aggressive Fund, PL Money Market Fund, PL Small-Cap Growth Fund, PL International Value Fund, PL Large-Cap Value Fund, PL Short Duration Bond Fund, PL Floating Rate Loan Fund, PL Growth LT Fund, PL Mid-Cap Equity Fund, PL International Large-Cap Fund, PL Small-Cap Value Fund, PL Main Street® Core Fund (Main Street is a registered trademark of OppenheimerFunds, Inc.), PL Emerging Markets Fund, PL Managed Bond Fund, PL Inflation Managed Fund, PL Large-Cap Growth Fund, PL Comstock Fund, PL Mid-Cap Growth Fund and PL Real Estate Fund.
Each Fund, with the exception of the PL Portfolio Optimization Conservative, PL Portfolio Optimization Moderate-Conservative, PL Portfolio Optimization Moderate, PL Portfolio Optimization Moderate-Aggressive, and PL Portfolio Optimization Aggressive Funds, (collectively, the “Portfolio Optimization Funds”), offers Class A shares only. Effective June 23, 2008, all Class B and C shares in the PL Small-Cap Growth, PL International Value, PL Large-Cap Value, PL Short Duration Bond, PL Growth LT, PL Mid-Cap Equity, PL International Large-Cap, PL Managed Bond, PL Inflation Managed, PL Large-Cap Growth, PL Comstock, PL Mid-Cap Growth and PL Real Estate Funds were converted to Class A shares within each Fund. The Portfolio Optimization Funds invest all of their assets in Class A shares of other funds of the Trust (collectively, the “Underlying Funds”). Presently, only the Portfolio Optimization Funds can invest in the PL Floating Rate Loan, PL Small-Cap Value, PL Main Street Core, and PL Emerging Markets Funds. Other than the PL Money Market Fund, the Underlying Funds are not available to new investors. The Portfolio Optimization Funds offer Class A, Class B, Class C and Class R shares. Each class is distinguished by its level of distribution and/or service fees and in general: (i) Class A shares are subject to a maximum 5.50% front-end sales charge; (ii) Class B shares are subject to a maximum 5.00% contingent deferred sales charge (“CDSC”); (iii) Class C shares are subject to a maximum 1.00% CDSC; and (iv) Class R shares are sold at net asset value (“NAV”) without an initial sales charge. The sales charge for Class A shares is reduced for purchases of $50,000 or more and may be waived in certain circumstances. There is no sales charge for Class A shares for purchases of $1 million or more, although there is a CDSC of 1% on redemptions of such Class A shares within one year of purchase. Class A shares of PL Money Market Fund are sold at NAV without an initial sales charge.
The Portfolio Optimization Funds invest substantially all of their assets in the Underlying Funds without payment of a front-end sales charge. No CDSC is charged to the Portfolio Optimization Funds upon the sales of shares of the Underlying Funds. An asset allocation process is used to determine each of the Portfolio Optimization Funds’ investment mixes and target allocations for each Underlying Fund. The Portfolio Optimization Funds’ asset allocations to the various Underlying Funds are periodically evaluated by Pacific Life Fund Advisors LLC, a wholly owned subsidiary of Pacific Life Insurance Company (“Pacific Life”), the investment adviser to the Trust, and may be updated at that time. Asset allocation analysis is performed by a third-party asset allocation consultant firm retained by Pacific Life Fund Advisors LLC. The asset class allocations, Underlying Funds (including any funds organized in the future), or target allocations with respect to each Underlying Fund, may be changed from time to time, without prior approval from shareholders, as determined appropriate to pursue stated investment goals. Since the Portfolio Optimization Funds invest in the Underlying Funds, in addition to their own net operating expenses, they also indirectly bear a portion of the net operating expenses of the applicable Underlying Funds, based on the actual average holdings.
2. SIGNIFICANT ACCOUNTING POLICIES
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for investment companies. These principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the Trust in the preparation of the financial statements.
The Trust implemented the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) as the single source of authoritative accounting guidance under the Generally Accepted Accounting Principles Topic. The ASC does not create new accounting and reporting guidance, rather it reorganizes U.S. GAAP pronouncements into approximately 90 topics within a consistent structure. All guidance contained in the ASC carries an equal level of authority. The ASC changed how the Trust references U.S. GAAP in its notes to financial statements.
In addition, the Trust implemented new guidance under (i) ASC Topic 815, Derivative and Hedging, (see required disclosure in each Fund’s Notes to Schedule of Investments and Note 11), (ii) ASC Topic 820, Fair Value Measurements and Disclosures, (see required disclosure in each Fund’s Notes to Schedule of Investments and Note 10), and (iii) ASC Topic 855, Subsequent Events, (see disclosure in Note 17 for details).
A. FUND VALUATION
Each Fund is divided into shares. The price of a Fund’s shares is called NAV per share. The NAV forms the basis for all transactions involving buying, selling, exchanging or reinvesting shares. Each Fund’s NAV per share is calculated by taking the total value of a Fund’s assets (the value of the securities and other investments a Fund holds plus cash or other assets, including interest accrued but not yet received), subtracting a Fund’s liabilities (including accrued expenses, dividends payable and any borrowings of a Fund, and any other
F-1
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTES TO FINANCIAL STATEMENTS (Continued)
liabilities), and dividing by the total number of shares outstanding. The value of a Fund’s assets is based on the fair value of all of the securities and other instruments (collectively “holdings”) it holds.
As a general principle, in determining a Fund’s NAV, the fair value of each holding is the amount which the Trust might reasonably expect to receive for the holding upon its current sale in the ordinary course.
Where available, such fair values are determined based on pricing data obtained from various sources approved by the Trust’s Board of Trustees (the “Board”). For purposes of calculating the NAV:
Domestic Equity Holdings. For domestic equity holdings, the Trust normally uses the last reported sale price received shortly after the New York Stock Exchange (“NYSE”) close and does not normally take into account trading, clearances or settlements that take place after the NYSE close.
Foreign Equity Holdings. Foreign equity holdings are normally priced using data reflecting the closing of the principal markets or market participants for those holdings, which may be earlier than the NYSE close. Foreign equity holdings are generally valued at their last reported sale price on a principal exchange. Quotations of foreign holdings in foreign currencies and those valued using foreign currency rates are converted into to U.S. dollar equivalents using a foreign exchange quotation from an approved source.
Over the Counter (“OTC”) Holdings and Certain Equity Holdings. OTC holdings, including options contracts and listed holdings for which no sales are reported, are generally valued at the mean between the most recent bid and ask prices obtained from a quotation and valuation reporting system, from established market makers, or from broker-dealers. OTC swap contracts are generally valued by approved pricing and quotation services, which are based on evaluated prices determined from various observable market and other factors. Certain OTC swap contracts are valued by other pricing processes approved by the Board.
Fixed Income Holdings, including Domestic and Foreign Holdings. Fixed income holdings are generally valued using the mean between bid and ask prices provided by approved pricing and quotation services which are based on evaluated prices determined from various observable market and other factors. Certain bonds are valued by a benchmark, matrix, or other pricing processes approved by the Board.
Money Market Instruments and Short-Term Holdings. The PL Money Market Fund’s holdings and money market instruments and short-term holdings maturing within 60 days in other Funds are valued at amortized cost, which involves valuing a holding at cost on the date of acquisition and thereafter assuming a constant accretion of a discount or amortization of a premium to maturity, regardless of the impact of fluctuating interest rates on the market value of the instrument. While this method provides certainty in valuation and approximates market value, it may result in periods during which value, as determined by amortized cost, is higher or lower than the price that would be received if the Fund sold the holding.
Portfolio Optimization Funds. The assets of each Portfolio Optimization Fund consist primarily of shares of the Underlying Funds, which are valued at their respective NAV’s at the time of computation.
Fair Value Under the Procedures Established by the Board
In the event that market quotations are not readily available, (i.e., approved pricing services or dealers do not provide a valuation for a particular holding), the valuations or alternate pricing methodologies approved by the Board are deemed unreliable or inaccurate, or if events that could materially affect the NAV occur after the close of the principal market for a particular holding but before each Fund values its assets, the holdings will be fair valued as determined in good faith pursuant to procedures adopted by the Board and in accordance with the provisions of the 1940 Act (“Trust’s Procedures”).
When the Trust values a holding pursuant to the Trust’s Procedures, such holdings will not be priced on the basis of quotes from the primary market in which they are traded, but rather will be priced by other methods established under the Trust’s Procedures. Fair valuation may require subjective determinations about the value of a holding. The fair value used by the Trust for a holding may differ from the value that the Trust would actually realize if the holding was sold.
Fair valuation will be used when events significantly affecting the values of a Fund’s foreign holdings occur between the close of foreign markets and the close of regular trading on the NYSE; or when, under the Trust’s procedures, the closing price of a foreign holding is deemed unreliable. All of these events could materially affect a Fund’s NAV. The Trust has retained a statistical research service to assist in determining the fair value of foreign holdings. This service utilizes proprietary computer models based on historical performance of markets and other considerations to determine fair values for certain foreign holdings.
Each Fund’s NAV per share is calculated once a day, every day the NYSE is open, including days when foreign markets are closed. For purposes of calculating the NAV for each Fund except the PL Money Market Fund, the holdings are calculated as of the time of the close of the NYSE, which is usually 4:00 p.m. Eastern Time, although it may occasionally close earlier. If the NYSE or other domestic exchange that normally closes at or before 4:00 p.m. Eastern Time, closes later than 4:00 p.m. Eastern Time, the closing prices of such domestic exchanges will be used to determine a Fund’s NAV. The NAV of the PL Money Market Fund is calculated by valuing its holdings using amortized cost, which approximates market value. Information that becomes known to the Fund or its agents after the NAV has been calculated on a particular day will not normally be used to retroactively adjust the price of a holding or the NAV determined earlier that day.
F-2
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTES TO FINANCIAL STATEMENTS (Continued)
The Fund’s NAV will not be determined on days when the NYSE is closed. There may be a delay in calculating the NAV if: (i) the NYSE is closed on a day other than a regular holiday or weekend, (ii) trading on the NYSE is restricted, (iii) an emergency exists (as determined by the SEC), making the sale of holdings or determinations of NAV not practicable, or (iv) the SEC permits a delay for the protection of shareholders. Trading in holdings on exchanges and OTC markets in European and Pacific Basin countries is normally completed well before 4:00 p.m. Eastern Time. In addition, the Funds may calculate their NAVs on days when the NYSE is open but foreign markets are closed. Conversely, holdings trading on foreign markets may take place on days when the NYSE is closed, and as a result, the Fund’s NAVs will not be calculated and shareholders will not be able to redeem their shares on such days. Since holdings that are primarily listed on foreign exchanges may trade on weekends, U.S. holidays or other days when a Fund does not price its shares, the value of a Fund’s holdings (and thereby the NAV of the Fund) may change on days when shareholders will not be able to purchase or redeem shares.
B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are recorded on a trade date basis. Securities purchased or sold on a when-issued or delayed-delivery basis as well as certain loan transactions and mortgage securities (such as Government National Mortgage Association (“GNMA”) Securities) may be settled a month or more after the trade date. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities are recorded as soon as a Fund is informed of the ex-dividend date or upon receipt of the dividend. A Fund’s estimated components of distributions received from real estate investment trusts may be considered return of capital distributions or capital gain distributions. Return of capital distributions are recorded as a reduction of cost of the related investments. Interest income is recorded on an accrual basis. Interest income includes coupon interest and amortization of premium and discount on debt securities. Accretion of discounts and amortization of premiums are recorded on a daily basis using the effective yield method. Investment income is recorded net of foreign taxes withheld, if any. A Fund may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. A Fund will accrue such taxes and reclaims as applicable, based upon their current interpretation of tax rules and regulations that exist in the markets in which a Fund invests. Facility fees and other fees (such as origination fees) received from senior loans purchased (see Note 2G) by a Fund are amortized over the expected term of each applicable senior loan. Commitment fees received by a Fund relating to unfunded senior loan commitments are deferred and amortized to income over the period of the commitment. Consent fees are compensation for agreeing to changes in the terms of debt instruments and are included in interest income on the Statements of Operations when received. Realized gains and losses from securities transactions are recorded on the basis of identified cost, which is also used for Federal income tax purposes. Gains and losses realized on principal paydowns from mortgage- and asset-backed securities are recorded as interest income in the Statements of Operations.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to distribution and/or service fees (see Note 3). Income, other non-class specific expenses, and realized and unrealized gains and losses on investments are allocated to each class of shares based on its relative daily net assets.
C. DISTRIBUTIONS TO SHAREHOLDERS
Each Fund currently declares and pays dividends on net investment income at least annually, except for the PL Money Market, PL Short Duration Bond, PL Floating Rate Loan, PL Managed Bond, PL Inflation Managed, and PL Real Estate Funds. Dividends for these Funds are generally: 1) declared daily and paid monthly for the PL Money Market Fund; 2) declared and paid monthly for the PL Short Duration Bond, PL Floating Rate Loan, PL Managed Bond, and PL Inflation Managed Funds; and 3) declared and paid quarterly for the PL Real Estate Fund. Dividends may be declared more or less frequently if advantageous to the specific Fund and its shareholders. All realized capital gains are distributed at least annually for each Fund.
Dividends on net investment income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. GAAP. These differences are primarily due to differing treatments for futures and options, foreign currency transactions, passive foreign investment companies, post-October losses, capital loss carryforwards, and losses deferred due to wash sales. Permanent book and tax differences relating to shareholder distributions will result in reclassifications of paid-in capital. Dividends and distributions paid to shareholders are recorded on the ex-dividend date.
D. FOREIGN CURRENCY TRANSLATION
Assets and liabilities initially expressed in non-U.S. currencies are translated into U.S. dollars based on the applicable exchange rates at the date of the last business day of the financial statement period. Purchases and sales of securities, interest income, dividends, and variation margin, and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rates in effect on the transaction date.
None of the Funds separately reports the effect of changes in foreign exchange rates from changes in market prices of securities held. Such changes are included with the net realized gain or loss and change in unrealized appreciation or depreciation on investment securities in the Statements of Operations. Other foreign currency transactions resulting in realized and unrealized gain or loss are reported separately as net realized gain or loss and change in unrealized appreciation or deprecation on foreign currencies in the Statements of Operations.
E. EXPENSE ALLOCATION
General expenses of the Trust are allocated to each Fund in proportion to its relative daily net assets. Expenses directly attributable to a particular Fund are charged directly to that Fund. Class-specific fees are charged directly to the respective share class within each Fund.
F-3
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTES TO FINANCIAL STATEMENTS (Continued)
F. OFFERING COSTS
A Fund bears all costs (or the applicable pro-rata share if there is more than one new Fund) associated with offering expenses of a Fund including legal, printing and support service expenses (see Note 3). All such costs are amortized to expense of a new Fund on a straight-line basis over twelve months from commencement of operations.
G. INVESTMENTS AND RISKS
General Investment Risks
An investment in each Fund represents an indirect investment in the holdings owned by that Fund. The value of these holdings may move up or down, sometimes rapidly and unpredictably. An investment in a Fund at any point in time may be worth more or less than the original investment. Investments in a Fund may be affected by general economic and market conditions, government and political events, investor perceptions, changes in interest rates and market liquidity.
The price of equity holdings changes in response to many factors, including a company’s historical and prospective earnings, the value of its assets, and many of the factors noted above.
Fixed income (debt) holdings are affected primarily by the financial condition of the companies that have issued them and by changes in interest rates, although the factors noted above may also have a significant impact on the holdings. A fixed income (debt) holding’s issuer (including borrowers) may not be able to meet its financial obligations (e.g., may not be able to make principal and/or interest payments when they are due or otherwise default on other financial terms) and/or go bankrupt. Securities such as high yield/high-risk bonds, i.e. bonds with low credit ratings by Moody’s (Ba or lower) or Standard & Poor’s (BB and lower) or no rating, are especially subject to credit risk during periods of economic uncertainty or during economic downturns and are more likely to default on their interest and/or principal payments than higher rated securities. Certain asset-backed instruments, such as collateralized debt obligations, collateralized mortgage obligations and other mortgage related securities, structured investment vehicles and other debt holdings may have exposure to subprime loans or subprime mortgages, which are loans to persons with lower credit ratings. These instruments may present credit risk that is not transparent and that is greater than indicated by their ratings. The value of these instruments may be more acutely affected by downturns in the credit markets or the real estate market than certain other holdings, and it may be difficult to value these instruments because of a thin secondary market.
There are certain additional risks involved in investing in foreign securities that are not inherent in investments in domestic securities. These risks may involve foreign currency fluctuations, adverse political, social and economic developments and the possible imposition of currency exchange blockages or other foreign governmental laws or restrictions. In addition, the securities of some foreign companies and securities markets are less liquid and at times more volatile than securities of comparable U.S. companies and U.S. securities markets. The markets in emerging markets countries can be extremely volatile.
Events in the financial markets have the potential to cause increased volatility and uncertainty, which may impact the value of the Trust’s assets. Due to interdependencies between markets, events in one market may adversely impact other markets or issuers in unforeseen ways. As a result, the value of a Fund’s holdings may be adversely affected by events in the markets, either directly or indirectly, and each Fund is exposed to potential decreases in the value of those holdings. In addition, traditionally liquid investments may experience periods of diminished liquidity. Governmental and regulatory responses to market events may impair a manager’s ability to pursue certain investment techniques or strategies and may have unexpected consequences on particular markets, strategies, or investments. Future events may impact a Fund in unforeseen ways, leading a Fund to alter its existing strategies or, potentially, to liquidate and close.
Each Fund may not invest in illiquid securities and illiquid bank loans (collectively, “illiquid holdings”) if as a result of such investment, more than 15% (10% for the PL Money Market Fund) of its net assets (taken at market value at the time of such investment) would be invested in illiquid holdings. The term “illiquid holdings” for this purpose means holdings that cannot be disposed of within seven days in the ordinary course of business at approximately the amount at which a Fund has valued the securities. The market value of illiquid holdings held by each Fund as of March 31, 2010 was less than 15% (10% for the PL Money Market Fund) of its net assets. Illiquid holdings may be difficult to value and difficult to sell, which means a Fund may not be able to sell such holding quickly for its full value.
Senior Loan Participations and Assignments
Certain Funds may invest in floating rate senior loans (“Senior Loans”), the interest rates of which float or adjust periodically based upon a specified adjustment schedule, benchmark indicator, or prevailing interest rates of domestic or foreign corporations, partnerships and other entities (“Borrowers”). Senior Loans generally pay interest at rates which are periodically redetermined by reference to a base lending rate plus a premium. These base lending rates generally include prime rates of one or more major U.S. banks, LIBOR rates or certificates of deposit rates. Senior Loans often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, cannot be predicted with accuracy, as a result, the actual maturity may be substantially less than the stated maturities. Senior Loans are exempt from registration under the Securities Act of 1933, may contain certain restrictions on resale, and cannot be sold publicly. A Fund’s investments in Senior Loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties.
When a Fund purchases assignments, it acquires all the rights and obligations under the loan agreement of the assigning lender. Assignments may, however, be arranged through private negotiations between potential assignees and potential assignors, and the rights and obligations acquired by the purchaser of an assignment may differ from, and be more limited than those held by the assigning lender.
F-4
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTES TO FINANCIAL STATEMENTS (Continued)
When a Fund purchases a participation of a Senior Loan interest, the Fund typically enters into a contractual agreement with the lender or other third party selling the participation. A participation interest in Senior Loans includes the right to receive payments of principal, interest and any fees to which it is entitled from the lender and only upon receipt by the lender of payments from the Borrower, but not from the Borrower directly. When holding a participation interest, if a Borrower is unable to meet its obligations under a loan agreement, a Fund generally has no right to enforce compliance of the terms of the loan agreement. As a result, the Fund assumes the credit risk of the Borrower, the selling participant, and any other persons interpositioned between the Fund and the Borrower. If the lead lender in a typical lending syndicate becomes insolvent, enters FDIC receivership or, if not FDIC insured, enters into bankruptcy, the Fund may incur certain costs and delays in receiving payment or may suffer a loss of principal and/or interest. As of March 31, 2010, no participation interest in Senior Loans was held by any of the Funds.
Inflation-Indexed Bonds
Certain Funds may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed income (debt) securities whose principal value is periodically adjusted to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation indexed bond, however, interest will be paid based on a principal value, which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will result in an adjustment of interest income in the Statements of Operations.
Mortgage-Related and Other Asset-Backed Securities
Certain Funds may invest in mortgage-related and other asset-backed securities. These securities include mortgage pass-through securities, collateralized mortgage obligations (“CMOs”), collateralized loan obligations (“CLOs”), mortgage dollar rolls, CMO residuals, stripped mortgage-backed securities (“SMBS”), and other securities that directly or indirectly represent a participation in, or are secured by and payable from, mortgage loans secured by real property. A collateralized obligation is a debt security issued by a corporation, trust or custodian, or by a U.S. Government agency or instrumentality, that is collateralized by a portfolio or pool of mortgages, mortgage passthrough securities, U.S. Government securities or other assets. The value of some mortgage-related and asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-related securities may expose the Fund to a lower rate of return upon reinvestment of principal. The value of these securities may fluctuate in response to the market’s perception of the creditworthiness of the issuers. Additionally, although mortgage and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or issuers will meet their obligations.
Mortgage dollar rolls, principally on a forward commitment basis, involve a Fund selling mortgage-backed securities for delivery in the current month and simultaneously contracting to repurchase similar, but not identical securities at an agreed-upon price on a fixed date in the future. A Fund accounts for such dollar rolls as purchases and sales and receives compensation as consideration for entering into the commitment to repurchase. A Fund must maintain liquid securities having a value not less than the repurchase price (including accrued interest) for such dollar rolls. The market value of the securities that a Fund is required to purchase may decline below the agreed upon repurchase price of those securities.
SMBS represent a participation in, or are secured by and payable from, mortgage loans on real property, and may be structured in classes with rights to receive varying proportions of principal and interest. SMBS include interest-only securities (“IOs”), which receive all of the interest, and principal-only securities (“POs”), which receive the entire principal. The cash flows and yields on IOs are extremely sensitive to the rate of principal payments (including prepayments) on the underlying mortgage loans. If the underlying mortgages experience higher than anticipated prepayments, an investor in IOs of SMBS may fail to recoup fully its initial investment, even if the IOs are highly rated or are derived from securities guaranteed by the U.S. Government. Unlike other fixed-income and other mortgage-backed securities, the market value of IOs tends to move in the same direction as interest rates. As prepayments on the underlying mortgages of POs increase, the yields on POs increase. Payments received from IOs are included in interest income in the Statements of Operations. Because principal will not be received at the maturity of an IO, adjustments are made to the book value of the security on the coupon date until maturity. These adjustments are included in interest income in the Statements of Operations. Payments received from POs are treated as reductions to the cost and par value of the securities. Any excess principal paydown gains or losses associated with the payments received are reported as interest income in the Statements of Operations.
Government Sponsored Enterprise Securities
Certain Funds may invest in securities issued by the Federal Home Loan Mortgage Corporation (“Freddie Mac”) and similar U.S. Government sponsored entities such as Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Banks (“FHLBs”). Although chartered and sponsored by Congress, such entities are generally not funded by Congressional appropriations. The debt and mortgage-backed securities issued by these entities are neither guaranteed nor insured by the U.S. Government. As such, securities issued by these entities are typically supported only by the credit of the issuing entity, which depends entirely on its own resources to repay the debt, subject to the risk of default.
However, on September 6, 2008, the Federal Housing Finance Agency (“FHFA”) placed Fannie Mae and Freddie Mac into conservatorship. As the conservator, FHFA succeeded to all rights, titles, powers and privileges of Fannie Mae and Freddie Mac and of any stockholder, officer or director of Fannie Mae and Freddie Mac with respect to those applicable entities and their respective assets. FHFA selected a new chief executive officer and chairman of the board of directors of Fannie Mae and Freddie Mac.
F-5
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTES TO FINANCIAL STATEMENTS (Continued)
On September 7, 2008, the U.S. Treasury announced three additional steps taken by it in connection with the conservatorship. First, the U.S. Treasury entered into a Senior Preferred Stock Purchase Agreement (“Purchase Agreements”) with Fannie Mae and Freddie Mac pursuant to which the U.S. Treasury will purchase up to an aggregate of $100 billion of each of Fannie Mae and Freddie Mac to maintain a positive net worth in each entity. This agreement contains various covenants that severely limit each entity’s operations. In exchange for entering into these agreements, the U.S. Treasury received $1 billion of each entity’s senior preferred stock and warrants to purchase 79.9% of each entity’s common stock. Second, the U.S. Treasury announced the creation of a new secured lending facility which is available to both Fannie Mae and Freddie Mac as a liquidity backstop. Third, the U.S. Treasury announced the creation of a temporary program to purchase mortgage-backed securities issued by Fannie Mae and Freddie Mac. Both the liquidity backstop and the mortgage-backed securities purchase program expired December 31, 2009. Fannie Mae and Freddie Mac are continuing to operate while in conservatorship and each remains liable for each of its respective obligations, including guaranty obligations, associated with its mortgage-backed securities.
On May 6, 2009, the U.S. Treasury and FHFA, acting on behalf of Fannie Mae and Freddie Mac in its capacity as conservator, amended the Purchase Agreements, to among other items: (i) increase the funding available under the Purchase Agreements from $100 billion to $200 billion; (ii) increase the limit on mortgage-related investments portfolio as of December 31, 2009 from $850 billion to $900 billion; and (iii) revise the limit on the aggregate indebtedness and the method of calculating such limit for both Fannie Mae and Freddie Mac.
On December 24, 2009, the Purchase Agreements were amended again to allow the Treasury’s funding commitment to increase from $200 billion to such amount as necessary to accommodate any cumulative reduction in net worth over the next three years. At the conclusion of the three-year period, the remaining commitment will be fully available to be drawn per the terms of the agreements.
When-Issued Securities
Certain Funds may purchase and sell securities on a when-issued basis. These transactions are made conditionally because a security, although authorized, has not yet been issued in the market. A commitment by a Fund is made regarding these transactions to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. A Fund may sell when-issued securities before they are delivered, which may result in a capital gain or loss. Risk may arise upon entering these contracts from the potential inability of a counterparty to meet the terms of their contracts, or if the issuer does not issue the securities due to political, economic, or other factors.
Delayed-Delivery Transactions
Certain Funds may purchase or sell securities on a delayed-delivery basis. Payment and delivery may take place after the customary settlement period for that security. The price or yield of the underlying securities is fixed at the time the transaction is negotiated. When delayed-delivery purchases are outstanding, a Fund will set aside, and maintain until the settlement date in a segregated account, liquid assets in an amount sufficient to meet the purchase price. When purchasing a security on a delayed-delivery basis, a Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its NAV. A Fund may dispose of or renegotiate a delayed-delivery transaction after it is entered into, and may sell delayed-delivery securities before they are delivered, which may result in a capital gain or loss. When a Fund has sold a security on a delayed-delivery basis, the Fund does not participate in future gains and losses with respect to the security.
Short Sales
Certain Funds may enter into short sales. A short sale is a transaction in which a Fund sells securities it does not own. A Fund’s use of short sales involves the risk that the price of the security in the open market may be higher when purchased to close out the Fund’s short position, resulting in a loss to the Fund. Such a loss is theoretically unlimited because there is no limit on the potential increase in the price of a security or guarantee as to the price at which the manager would be able to purchase the security in the open market.
When a Fund sells securities short, it must borrow those securities to make delivery to the buyer. The Fund incurs an expense for such borrowing. The Fund may not be able to purchase a security that it needs to deliver to close out a short position at an acceptable price. This may result in losses and/or require the Fund to sell long positions before the manager had intended. A Fund may not be able to successfully implement its short sale strategy, which may limit its ability to achieve its investment goal, due to limited availability of desired or eligible securities, the cost of borrowing securities, regulatory changes limiting or barring short sales, or for other reasons. Securities sold in short sale transactions and the interest and dividends payable on such securities, if any, are reflected as a liability in the Statements of Assets and Liabilities.
The use of proceeds received from selling short to purchase additional securities (long positions), results in leverage which may increase a Fund’s exposure to long positions. Leverage could magnify gains and losses and, therefore, increases a Fund’s volatility.
Repurchase Agreements
Certain Funds may invest in repurchase agreements. Repurchase agreements permit the investor to maintain liquidity and earn income over periods of time as short as overnight. Repurchase agreements held by a Fund are fully collateralized by U.S. Government securities, or securities issued by U.S. Government agencies, or securities that are within the three highest credit categories assigned by established rating agencies (Aaa, Aa, or A by Moody’s or AAA, AA or A by Standard & Poor’s) or, if not rated by Moody’s or Standard & Poor’s, are of equivalent investment quality as determined by the investment adviser or the applicable portfolio manager. Such collateral is in the possession of the Trust’s custodian or a designated broker-dealer. The collateral is evaluated daily to ensure its market value equals or
F-6
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTES TO FINANCIAL STATEMENTS (Continued)
exceeds the current market value of the repurchase agreements including accrued interest. In the event of default on the obligation to repurchase, a Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation.
Derivative Instruments
Certain Funds are permitted to invest in derivative instruments, including, but not limited to, futures contracts, options contracts, forward foreign currency contracts, interest rate swaps and credit default swaps (see Note 11 for a detailed discussion on derivative instruments).
H. NEW ACCOUNTING PRONOUNCEMENT
In January 2010, the FASB issued Accounting Standards Update No. 2010-06, Improving Disclosures about Fair Value Measurements, amending ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), to require entities to disclose significant transfers between Levels 1 and 2, to separately present purchases, sales, issuances, and settlements in their reconciliation of Level 3 fair value measurements (i.e., to present such items on a gross basis rather than on a net basis), and which clarifies existing disclosure requirements provided by ASC 820 regarding the level of disaggregation and the inputs and valuation techniques used to measure fair value for measurements that fall within either Level 2 or Level 3 of the fair value hierarchy (see Note 10). This amendment to ASC 820 is effective for interim and annual period beginning after December 15, 2009, except for the disclosures about purchases, sales issuances, and settlements in the roll forward of activity in Level 3 fair value measurements (which are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years). Management is currently evaluating the impact the implementation of this amendment to ASC 820 will have on the Trust’s financial statement disclosures.
3. INVESTMENT ADVISORY, ADMINISTRATION AND SHAREHOLDER SERVICES, AND DISTRIBUTION AGREEMENTS
Pursuant to an Investment Advisory Agreement, Pacific Life Fund Advisors LLC (“PLFA”), serves as investment adviser to the Trust. PLFA also does business under the name Pacific Asset Management. Pacific Asset Management manages the PL Money Market Fund. For each other Fund, with the exception of the Portfolio Optimization Funds, PLFA has retained other management firms to sub-advise each Fund, as discussed later in this section. PLFA receives advisory fees from each Fund based on the following advisory fee rates, which are based on an annual percentage of average daily net assets of each Fund:
PL Portfolio Optimization Conservative | 0.20 | % | PL Large-Cap Value | 0.65 | % | PL Emerging Markets | 0.80 | % | ||||||||
PL Portfolio Optimization Moderate-Conservative | 0.20 | % | PL Short Duration Bond | 0.40 | % | PL Managed Bond | 0.40 | % | ||||||||
PL Portfolio Optimization Moderate | 0.20 | % | PL Floating Rate Loan | 0.75 | % | PL Inflation Managed | 0.40 | % | ||||||||
PL Portfolio Optimization Moderate-Aggressive | 0.20 | % | PL Growth LT | 0.55 | % | PL Large-Cap Growth (2) | 0.75 | % | ||||||||
PL Portfolio Optimization Aggressive | 0.20 | % | PL Mid-Cap Equity | 0.65 | % | PL Comstock | 0.75 | % | ||||||||
PL Money Market | See (1) | PL International Large-Cap | 0.85 | % | PL Mid-Cap Growth | 0.70 | % | |||||||||
PL Small-Cap Growth | 0.60 | % | PL Small-Cap Value | 0.75 | % | PL Real Estate | 0.90 | % | ||||||||
PL International Value | 0.65 | % | PL Main Street Core | 0.45 | % |
(1) | An annual rate of 0.20% of the first $250 million of the average daily net assets, 0.15% of the next $250 million, and 0.10% in excess of $500 million. | |
(2) | Effective October 1, 2009, PLFA voluntarily agreed to waive 0.025% of its advisory fees through June 30, 2011 as long as UBS Global Asset Management (Americas), Inc. remains manager of the fund. There is no guarantee that PLFA will continue such waiver after that date. |
Pursuant to Fund Management Agreements, the Trust and PLFA engage various management firms under PLFA’s supervision for seventeen of the twenty-three Funds. As of March 31, 2010, the following firms serve as sub-advisers for their respective Fund: Fred Alger Management, Inc. for the PL Small-Cap Growth Fund; AllianceBernstein L.P. for the PL International Value Fund; ClearBridge Advisors, LLC for the PL Large-Cap Value Fund; Goldman Sachs Asset Management, L.P. for the PL Short Duration Bond Fund; Highland Capital Management, L.P. for the PL Floating Rate Loan Fund (Note: Eaton Vance Management is scheduled to become the manager effective July 1, 2010); Janus Capital Management LLC for the PL Growth LT Fund; Lazard Asset Management LLC for the PL Mid-Cap Equity Fund; MFS Investment Management for the PL International Large-Cap Fund; NFJ Investment Group LLC for the PL Small-Cap Value Fund; OppenheimerFunds, Inc. for the PL Main Street Core and PL Emerging Markets Funds; Pacific Investment Management Company LLC for the PL Managed Bond and PL Inflation Managed Funds; UBS Global Asset Management (Americas) Inc. for the PL Large-Cap Growth Fund; and Van Kampen for the PL Comstock, PL Mid-Cap Growth and PL Real Estate Funds. PLFA, as investment adviser to the Trust, pays the related management fees to these sub-advisers as compensation for advisory services provided to their respective Fund.
Pursuant to an Administration and Shareholder Services Agreement (the “Agreement”), Pacific Life serves as administrator (the “Administrator”) to the Trust. The Trust compensated the Administrator at an annual rate of 0.30% of average daily net assets for procuring or providing administrative, transfer agency, and shareholder services. In addition, Pacific Life and PLFA provide support services to the Trust that are outside the scope of the administrator’s and investment adviser’s responsibilities under the respective Agreements. Under the support services agreement, the Trust compensates Pacific Life and PLFA for their expenses in providing support services to the Trust in connection with various matters, including the expense of registering and qualifying each Fund on State and Federal levels, providing legal,
F-7
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTES TO FINANCIAL STATEMENTS (Continued)
compliance, accounting, tax and chief compliance officer services, maintaining the Trust’s legal existence, shareholders’ meetings, and expenses associated with preparing, printing and distributing reports, proxies and prospectuses to existing shareholders. The Trust reimbursed Pacific Life and PLFA for these support services on an approximate cost basis.
Pursuant to a Distribution Agreement, Pacific Select Distributors, Inc. (the “Distributor”), a wholly owned subsidiary of Pacific Life, serves as distributor of the Trust’s shares. The Distributor bears all expenses of providing services, including costs of sales presentations, mailings, advertisings, and other marketing efforts by the Distributor in connection with the distribution or sale of the Trust’s shares and makes distribution and service payments to selling groups in connection with the sale of the Trust’s shares and subsequent servicing needs of shareholders provided by selling groups. The Distributor received distribution and service fees pursuant to class-specific distribution and service plans, each adopted in accordance with Rule 12b-1 under the 1940 Act (together the “12b-1 Plans”) for Class B, C and R shares. The Distributor also received service fees pursuant to a Class A Service Plan (non 12b-1). Under the 12b-1 Plans, each Fund paid to the Distributor both distribution and service fees at an annual rate expressed as a percentage of average daily net assets. The distribution fee was 0.75% for Class B and C shares and 0.25% for R shares. The service fee was 0.25% for Class A, B, C, and R shares. The Class A shares did not pay a distribution fee. For the Portfolio Optimization Funds, each class of shares invests in Class A shares of the Underlying Funds, without payment of a front-end sales charge. To avoid duplication of fees, the 0.25% service fee for each class of the Portfolio Optimization Funds was waived. The fees were accrued daily.
For the year ended March 31, 2010, the Distributor, acting as underwriter, received net commissions of $8,742,480 from the sale of Class A shares and received $633,605 in CDSC from redemptions of Class B and C shares.
4. TRUSTEE COMPENSATION
The Trust pays each independent trustee of the Board retainer fees and specified amounts for various Board and committee services and for chairing the committees.
Each independent trustee is eligible to participate in the Trust’s Deferred Compensation Plan (the “Deferred Compensation Plan”). The Deferred Compensation Plan allows each independent trustee to voluntarily defer receipt of all or a percentage of fees which otherwise would be payable for services performed. Amounts in the deferral account are obligations of the Trust that are payable in accordance with the Deferred Compensation Plan. Deferral amounts are treated as though equivalent dollar amounts had been invested in shares of certain Funds. An independent trustee who defers compensation has the option to select credit rate options that track the performance of the Class A shares of the corresponding Funds without a sales load. Accordingly, the market value appreciation or depreciation of the independent trustee’s deferred compensation accounts will cause the expenses of each Fund to increase or decrease due to the market fluctuation. During the year ended March 31, 2010, the Trust paid $68,243 of deferred compensation to retired independent trustees. As of March 31, 2010, the total deferred trustee compensation liability was $60,378 for both current and retired independent trustees.
5. EXPENSE REDUCTIONS
To help limit the Trust’s expenses, PLFA, pursuant to an expense limitation agreement, has contractually agreed to reduce its fees or otherwise reimburse each Fund for its operating expenses (including organizational expenses, but not including investment advisory fees; distribution and service (12b-1) fees; non 12b-1 service fees; dividends on securities sold short; acquired fund fees and expenses; taxes (including foreign taxes on dividends, interest or gains); interest; brokerage commissions and other transactional expenses; extraordinary expenses such as litigation and other expenses not incurred in the ordinary course of each Fund’s business) that exceed an annual expense rate based on a percentage of a Fund’s average daily net assets. The expense cap is 0.00% for the Portfolio Optimization Funds and 0.30% for the Underlying Funds through June 30, 2010. Pacific Life, as Administrator, charges each Fund at an annual rate of 0.30% of average daily net assets under the Administration and Shareholder Services Agreement (see Note 3). To the extent that the expense cap for a Fund is lower than the administration fee, pursuant to an Expense Limitation Agreement dated July 1, 2008, Pacific Life has agreed to reduce its administration fee to the level of the expense cap through June 30, 2010.
The investment adviser expense reimbursement and administrator fee reduction for the year ended March 31, 2010 for each Fund were as follows:
Investment | Total | |||||||||||
Adviser | Administrator | Reimbursements | ||||||||||
Expense | Fee | and | ||||||||||
Funds | Reimbursements | Reductions | Reductions | |||||||||
PL Portfolio Optimization Conservative | $ | 240,286 | $ | 352,540 | $ | 592,826 | ||||||
PL Portfolio Optimization Moderate-Conservative | 273,454 | 405,148 | 678,602 | |||||||||
PL Portfolio Optimization Moderate | 742,958 | 1,301,156 | 2,044,114 | |||||||||
PL Portfolio Optimization Moderate-Aggressive | 713,516 | 1,238,156 | 1,951,672 | |||||||||
PL Portfolio Optimization Aggressive | 335,038 | 516,135 | 851,173 | |||||||||
PL Money Market | 156,211 | 88,660 | 244,871 | |||||||||
PL Small-Cap Growth | 96,729 | — | 96,729 | |||||||||
PL International Value | 289,342 | — | 289,342 | |||||||||
PL Large-Cap Value | 216,004 | — | 216,004 | |||||||||
PL Short Duration Bond | 164,724 | — | 164,724 | |||||||||
PL Floating Rate Loan | 98,235 | — | 98,235 | |||||||||
PL Growth LT | 216,805 | — | 216,805 |
F-8
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTES TO FINANCIAL STATEMENTS (Continued)
Investment | Total | |||||||||||
Adviser | Administrator | Reimbursements | ||||||||||
Expense | Fee | and | ||||||||||
Funds | Reimbursements | Reductions | Reductions | |||||||||
PL Mid-Cap Equity | $ | 177,580 | $ | — | $ | 177,580 | ||||||
PL International Large-Cap | 286,639 | — | 286,639 | |||||||||
PL Small-Cap Value | 92,384 | — | 92,384 | |||||||||
PL Main Street Core | 266,417 | — | 266,417 | |||||||||
PL Emerging Markets | 319,937 | — | 319,937 | |||||||||
PL Managed Bond | 502,729 | — | 502,729 | |||||||||
PL Inflation Managed | 308,763 | — | 308,763 | |||||||||
PL Large-Cap Growth | 120,503 | — | 120,503 | |||||||||
PL Comstock | 214,415 | — | 214,415 | |||||||||
PL Mid-Cap Growth | 115,208 | — | 115,208 | |||||||||
PL Real Estate | 94,439 | — | 94,439 | |||||||||
Total | $ | 6,042,316 | $ | 3,901,795 | $ | 9,944,111 | ||||||
There is no guarantee that PLFA and/or Pacific Life will continue to cap and/or reduce expenses after June 30, 2010. Any reimbursement and reduction, except for the reimbursement of $8,449 by PLFA for the insurance premium paid by the PL Money Market Fund for participating in the U.S. Treasury’s Temporary Money Market Fund Guarantee Program (see Note 14) and the administration fee reduction of $88,660 by Pacific Life, is subject to repayment to PLFA and/or Pacific Life, for a period of time as permitted under regulatory and/or accounting guidance (currently 3 years from the end of the fiscal year in which the reimbursement or reduction took place), to the extent such expenses fall below the expense cap in future years. Any amounts repaid to PLFA and/or Pacific Life will have the effect of increasing such expenses of the Fund, but not above the expense cap that was in place when the amounts were initially reimbursed or reduced.
The cumulative reimbursement and reduction amounts, if any, as of March 31, 2010 that are subject to repayment for each Fund are as follows:
Expiration | ||||||||||||
Funds | 2011 | 2012 | 2013 | |||||||||
PL Portfolio Optimization Conservative | $ | 257,268 | $ | 366,006 | $ | 592,826 | ||||||
PL Portfolio Optimization Moderate-Conservative | 575,493 | 577,457 | 678,602 | |||||||||
PL Portfolio Optimization Moderate | 2,124,615 | 1,939,507 | 2,044,114 | |||||||||
PL Portfolio Optimization Moderate-Aggressive | 2,302,787 | 1,999,277 | 1,951,672 | |||||||||
PL Portfolio Optimization Aggressive | 1,080,933 | 906,385 | 851,173 | |||||||||
PL Money Market | 93,254 | 165,706 | 147,762 | |||||||||
PL Small-Cap Growth | 165,822 | 131,007 | 96,729 | |||||||||
PL International Value | 343,568 | 325,469 | 289,342 | |||||||||
PL Large-Cap Value | 198,498 | 175,460 | 216,004 | |||||||||
PL Short Duration Bond | 212,660 | 150,950 | 164,724 | |||||||||
PL Floating Rate Loan | — | 55,422 | 98,235 | |||||||||
PL Growth LT | 272,256 | 229,867 | 216,805 | |||||||||
PL Mid-Cap Equity | 234,458 | 195,175 | 177,580 | |||||||||
PL International Large-Cap | 357,364 | 296,673 | 286,639 | |||||||||
PL Small-Cap Value | 66,498 | 120,502 | 92,384 | |||||||||
PL Main Street Core | 315,029 | 370,309 | 266,417 | |||||||||
PL Emerging Markets | 455,787 | 347,289 | 319,937 | |||||||||
PL Managed Bond | 501,374 | 472,001 | 502,729 | |||||||||
PL Inflation Managed | 359,755 | 341,417 | 308,763 | |||||||||
PL Large-Cap Growth | 140,798 | 94,718 | 120,503 | |||||||||
PL Comstock | 300,315 | 214,389 | 214,415 | |||||||||
PL Mid-Cap Growth | 238,535 | 138,724 | 115,208 | |||||||||
PL Real Estate | 138,599 | 118,370 | 94,439 | |||||||||
Total | $ | 10,735,666 | $ | 9,732,080 | $ | 9,847,002 | ||||||
Due to the current regulatory and/or accounting guidance, all expense reimbursements made by the investment adviser for the period September 28, 2001 (the Pacific Life Funds’ commencement date of operations) to March 31, 2007 expired for future recoupment as of March 31, 2010. Based on the Trust’s experience, the likelihood of repayment by a Fund for the amounts presented in the table above prior to the expiration is considered remote and no liabilities for such repayments were recorded by any Fund as of March 31, 2010. The adviser expense reimbursement and administrator fee reduction is presented in the Statements of Operations.
6. TRANSACTIONS WITH AFFILIATES
The Trust has incurred $10,251,934 of investment advisory fees (after $89,072 and $6,807 advisory fee waivers for the PL Money Market Fund and PL Large-Cap Growth Fund, respectively), $3,926,325 of administration fees (after $3,901,795 administrator fee reduction), and $992,989 of expenses for support services provided by Pacific Life and PLFA (at approximate cost, see Note 3), for the year ended March 31, 2010. As of March 31, 2010, $1,048,755, $397,501, and $248,846, respectively, remained payable.
F-9
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
For the year ended March 31, 2010, the Trust also incurred $8,382,253 of distribution and/or service fees (after distribution and/or service fee waivers of $3,178,677), payable to the Distributor under the 12b-1 Plans and non 12b-1 service plan. As of March 31, 2010, $194,376 remained payable.
As of March 31, 2010, each of the Portfolio Optimization Funds (aggregate of Classes A, B, C and R) owned shares in each of the affiliated applicable Underlying Funds. A summary of transactions for the year ended March 31, 2010 is as follows:
March 31, 2010 | |||||||||||||||||||||||||||||||||
Distributions | Net | Change in | |||||||||||||||||||||||||||||||
April 1, 2009 | Purchase | Received and | Sales | Realized | Unrealized | Market | Shares | ||||||||||||||||||||||||||
Fund/Underlying Fund | Market Value | Cost (1) | Reinvested (2) | Proceeds | Gain (Loss) (3) | Appreciation | Value | Balance | |||||||||||||||||||||||||
PL Portfolio Optimization Conservative Fund | |||||||||||||||||||||||||||||||||
PL Money Market | $ | 1,490,508 | $ | 627,140 | $ | — | $ | 2,117,648 | $ | — | $ | — | $ | — | — | ||||||||||||||||||
PL International Value | 2,377,909 | 1,772,943 | 43,403 | 1,716,104 | (766,846 | ) | 1,842,037 | 3,553,342 | 386,653 | ||||||||||||||||||||||||
PL Large-Cap Value | 1,577,726 | 6,397,278 | 78,613 | 1,066,968 | (214,958 | ) | 1,741,647 | 8,513,338 | 817,019 | ||||||||||||||||||||||||
PL Short Duration Bond | 11,568,349 | 11,038,134 | 321,925 | 2,165,048 | (25,155 | ) | 456,849 | 21,195,054 | 2,119,505 | ||||||||||||||||||||||||
PL Floating Rate Loan | 6,453,595 | 5,887,660 | 509,737 | 656,332 | (53,314 | ) | 1,807,594 | 13,948,940 | 1,411,836 | ||||||||||||||||||||||||
PL Growth LT | 1,825,156 | 2,182,763 | 29,821 | 1,560,050 | (277,921 | ) | 1,134,567 | 3,334,336 | 297,443 | ||||||||||||||||||||||||
PL Mid-Cap Equity | 2,607,989 | 1,905,200 | 19,067 | 997,453 | (408,179 | ) | 2,092,042 | 5,218,666 | 602,617 | ||||||||||||||||||||||||
PL International Large-Cap | 1,656,197 | 3,789,636 | 23,158 | 3,033,108 | (207,398 | ) | 1,058,585 | 3,287,070 | 237,677 | ||||||||||||||||||||||||
PL Main Street Core | 4,377,774 | 3,270,953 | 29,867 | 5,710,948 | (779,348 | ) | 2,118,094 | 3,306,392 | 367,377 | ||||||||||||||||||||||||
PL Managed Bond | 28,559,899 | 23,323,283 | 2,085,683 | 649,373 | 1,066,300 | 3,435,251 | 57,821,043 | 5,378,702 | |||||||||||||||||||||||||
PL Inflation Managed | 15,831,891 | 11,937,686 | 812,997 | 2,161,449 | (244,813 | ) | 1,222,864 | 27,399,176 | 2,712,790 | ||||||||||||||||||||||||
PL Large-Cap Growth | — | 3,387,567 | — | 438,135 | 13,149 | 653,412 | 3,615,993 | 469,000 | |||||||||||||||||||||||||
PL Comstock | 3,301,137 | 2,012,187 | 39,205 | 1,731,148 | (469,027 | ) | 2,097,141 | 5,249,495 | 491,066 | ||||||||||||||||||||||||
Total | $ | 81,628,130 | $ | 77,532,430 | $ | 3,993,476 | $ | 24,003,764 | $ | (2,367,510 | ) | $ | 19,660,083 | $ | 156,442,845 | ||||||||||||||||||
March 31, 2010 | |||||||||||||||||||||||||||||||||
Distributions | Net | Change in | |||||||||||||||||||||||||||||||
April 1, 2009 | Purchase | Received and | Sales | Realized | Unrealized | Market | Shares | ||||||||||||||||||||||||||
Fund/Underlying Fund | Market Value | Cost (1) | Reinvested (2) | Proceeds | Gain (Loss) (3) | Appreciation | Value | Balance | |||||||||||||||||||||||||
PL Portfolio Optimization Moderate-Conservative Fund | |||||||||||||||||||||||||||||||||
PL Small-Cap Growth | $ | 1,023,236 | $ | 20,919 | $ | — | $ | 1,258,736 | $ | (253,708 | ) | $ | 468,289 | $ | — | — | |||||||||||||||||
PL International Value | 5,718,751 | 1,753,399 | 85,600 | 4,230,450 | (2,846,317 | ) | 5,111,972 | 5,592,955 | 608,591 | ||||||||||||||||||||||||
PL Large-Cap Value | 3,840,307 | 5,987,228 | 123,481 | 237,312 | (81,904 | ) | 2,646,096 | 12,277,896 | 1,178,301 | ||||||||||||||||||||||||
PL Short Duration Bond | 10,394,754 | 7,938,787 | 285,297 | 282,755 | (65 | ) | 392,371 | 18,728,389 | 1,872,839 | ||||||||||||||||||||||||
PL Floating Rate Loan | 5,530,145 | 5,401,653 | 439,607 | 421,932 | (14,206 | ) | 1,492,409 | 12,427,676 | 1,257,862 | ||||||||||||||||||||||||
PL Growth LT | 3,943,745 | 1,154,589 | 75,234 | 1,471,054 | (575,040 | ) | 2,155,476 | 5,282,950 | 471,271 | ||||||||||||||||||||||||
PL Mid-Cap Equity | 3,886,009 | 917,054 | 28,997 | 688,582 | (231,382 | ) | 2,731,068 | 6,643,164 | 767,109 | ||||||||||||||||||||||||
PL International Large-Cap | 4,839,675 | 2,207,742 | 74,199 | 411,773 | (133,841 | ) | 2,695,420 | 9,271,422 | 670,385 | ||||||||||||||||||||||||
PL Small-Cap Value | 940,468 | 338,385 | 21,227 | 318,039 | (60,535 | ) | 637,486 | 1,558,992 | 181,913 | ||||||||||||||||||||||||
PL Main Street Core | 6,853,763 | 2,850,242 | 86,058 | 561,012 | (207,704 | ) | 3,646,247 | 12,667,594 | 1,407,511 | ||||||||||||||||||||||||
PL Managed Bond | 25,837,362 | 14,535,031 | 1,724,114 | 731,073 | 861,077 | 3,028,296 | 45,254,807 | 4,209,749 | |||||||||||||||||||||||||
PL Inflation Managed | 13,955,393 | 8,784,316 | 727,634 | 696,177 | (46,344 | ) | 963,667 | 23,688,489 | 2,345,395 | ||||||||||||||||||||||||
PL Large-Cap Growth | 1,005,606 | 3,722,638 | — | 400,689 | (121,076 | ) | 1,296,236 | 5,502,715 | 713,711 | ||||||||||||||||||||||||
PL Comstock | 6,886,784 | 1,771,611 | 88,368 | 1,571,648 | (932,617 | ) | 4,432,798 | 10,675,296 | 998,624 | ||||||||||||||||||||||||
PL Mid-Cap Growth | 2,034,810 | 606,630 | — | 737,702 | (183,280 | ) | 1,580,915 | 3,301,373 | 392,553 | ||||||||||||||||||||||||
Total | $ | 96,690,808 | $ | 57,990,224 | $ | 3,759,816 | $ | 14,018,934 | $ | (4,826,942 | ) | $ | 33,278,746 | $ | 172,873,718 | ||||||||||||||||||
March 31, 2010 | |||||||||||||||||||||||||||||||||
Distributions | Net | Change in | |||||||||||||||||||||||||||||||
April 1, 2009 | Purchase | Received and | Sales | Realized | Unrealized | Market | Shares | ||||||||||||||||||||||||||
Fund/Underlying Fund | Market Value | Cost (1) | Reinvested (2) | Proceeds | Gain (Loss) (3) | Appreciation | Value | Balance | |||||||||||||||||||||||||
PL Portfolio Optimization Moderate Fund | |||||||||||||||||||||||||||||||||
PL Small-Cap Growth | $ | 6,327,324 | $ | 680,103 | $ | — | $ | 3,963,728 | $ | (1,921,542 | ) | $ | 4,603,790 | $ | 5,725,947 | 608,496 | |||||||||||||||||
PL International Value | 20,723,872 | 5,876,636 | 343,171 | 12,684,982 | (9,696,587 | ) | 18,266,790 | 22,828,900 | 2,484,102 | ||||||||||||||||||||||||
PL Large-Cap Value | 21,074,191 | 21,322,427 | 577,354 | 200,895 | (73,332 | ) | 12,288,395 | 54,988,140 | 5,277,173 | ||||||||||||||||||||||||
PL Short Duration Bond | 22,404,654 | 9,592,122 | 453,584 | 7,035,951 | 24,736 | 657,114 | 26,096,259 | 2,609,626 | |||||||||||||||||||||||||
PL Floating Rate Loan | 13,038,709 | 9,609,856 | 984,563 | 203,545 | (25,769 | ) | 3,352,327 | 26,756,141 | 2,708,111 | ||||||||||||||||||||||||
PL Growth LT | 22,640,031 | 3,722,425 | 428,532 | 7,676,964 | (3,508,379 | ) | 12,123,634 | 27,729,279 | 2,473,620 | ||||||||||||||||||||||||
PL Mid-Cap Equity | 18,394,241 | 2,932,622 | 137,427 | 449,223 | (256,230 | ) | 12,129,013 | 32,887,850 | 3,797,673 | ||||||||||||||||||||||||
PL International Large-Cap | 18,580,252 | 6,389,364 | 284,307 | 824,243 | (279,743 | ) | 10,067,289 | 34,217,226 | 2,474,131 | ||||||||||||||||||||||||
PL Small-Cap Value | 5,796,711 | 1,698,376 | 133,784 | 52,338 | (20,835 | ) | 3,635,576 | 11,191,274 | 1,305,866 | ||||||||||||||||||||||||
PL Main Street Core | 28,216,458 | 8,531,127 | 349,035 | 474,614 | (212,035 | ) | 14,168,176 | 50,578,147 | 5,619,794 | ||||||||||||||||||||||||
PL Emerging Markets | 10,116,269 | 2,137,511 | 83,749 | 2,983,955 | (776,240 | ) | 8,651,928 | 17,229,262 | 1,413,393 | ||||||||||||||||||||||||
PL Managed Bond | 55,013,605 | 23,305,664 | 3,461,573 | 801,391 | 1,709,412 | 6,210,587 | 88,899,450 | 8,269,716 | |||||||||||||||||||||||||
PL Inflation Managed | 30,374,119 | 23,856,634 | 1,745,777 | 888,027 | (63,989 | ) | 2,387,923 | 57,412,437 | 5,684,400 | ||||||||||||||||||||||||
PL Large-Cap Growth | 6,114,856 | 11,424,207 | — | 137,677 | (69,610 | ) | 5,223,389 | 22,555,165 | 2,925,443 | ||||||||||||||||||||||||
PL Comstock | 23,790,437 | 7,228,443 | 353,011 | 466,625 | (266,258 | ) | 14,105,869 | 44,744,877 | 4,185,676 | ||||||||||||||||||||||||
PL Mid-Cap Growth | 6,193,568 | 1,219,087 | — | 686,680 | (84,900 | ) | 4,486,371 | 11,127,446 | 1,323,121 | ||||||||||||||||||||||||
PL Real Estate | 4,594,559 | 2,488,650 | 142,186 | 1,143,161 | (976,284 | ) | 6,547,813 | 11,653,763 | 1,261,230 | ||||||||||||||||||||||||
Total | $ | 313,393,856 | $ | 142,015,254 | $ | 9,478,053 | $ | 40,673,999 | $ | (16,497,585 | ) | $ | 138,905,984 | $ | 546,621,563 | ||||||||||||||||||
F-10
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2010 | |||||||||||||||||||||||||||||||||
Distributions | Net | Change in | |||||||||||||||||||||||||||||||
April 1, 2009 | Purchase | Received and | Sales | Realized | Unrealized | Market | Shares | ||||||||||||||||||||||||||
Fund/Underlying Fund | Market Value | Cost (1) | Reinvested (2) | Proceeds | Gain (Loss) (3) | Appreciation | Value | Balance | |||||||||||||||||||||||||
PL Portfolio Optimization Moderate-Aggressive Fund | |||||||||||||||||||||||||||||||||
PL Small-Cap Growth | $ | 9,507,107 | $ | 927,212 | $ | — | $ | 4,408,938 | $ | (2,150,007 | ) | $ | 6,617,628 | $ | 10,493,002 | 1,115,090 | |||||||||||||||||
PL International Value | 31,188,322 | 5,351,475 | 544,586 | 15,468,885 | (13,475,307 | ) | 26,795,526 | 34,935,717 | 3,801,493 | ||||||||||||||||||||||||
PL Large-Cap Value | 23,772,917 | 21,011,442 | 652,039 | 39,696 | (4,858 | ) | 13,863,049 | 59,254,893 | 5,686,650 | ||||||||||||||||||||||||
PL Short Duration Bond | 2,756,816 | 6,481,916 | 133,038 | 123,486 | (14 | ) | 162,555 | 9,410,825 | 941,082 | ||||||||||||||||||||||||
PL Floating Rate Loan | 2,792,420 | 286,762 | 42,054 | 3,430,051 | (280,316 | ) | 589,131 | — | — | ||||||||||||||||||||||||
PL Growth LT | 30,522,197 | 3,101,160 | 583,792 | 10,892,717 | (4,807,547 | ) | 16,315,317 | 34,822,202 | 3,106,352 | ||||||||||||||||||||||||
PL Mid-Cap Equity | 23,956,975 | 1,851,596 | 173,931 | 637,374 | (482,143 | ) | 15,668,493 | 40,531,478 | 4,680,309 | ||||||||||||||||||||||||
PL International Large-Cap | 27,126,165 | 3,501,749 | 398,302 | 4,251,768 | (2,091,331 | ) | 15,208,019 | 39,891,136 | 2,884,392 | ||||||||||||||||||||||||
PL Small-Cap Value | 11,554,863 | 1,654,302 | 197,983 | 3,567,690 | (1,770,929 | ) | 7,420,210 | 15,488,739 | 1,807,321 | ||||||||||||||||||||||||
PL Main Street Core | 30,360,760 | 8,869,054 | 395,516 | 97,010 | (48,732 | ) | 15,692,848 | 55,172,436 | 6,130,271 | ||||||||||||||||||||||||
PL Emerging Markets | 12,752,271 | 1,173,258 | 106,565 | 3,712,199 | (1,259,476 | ) | 11,193,290 | 20,253,709 | 1,661,502 | ||||||||||||||||||||||||
PL Managed Bond | 23,156,379 | 9,979,946 | 1,349,054 | 4,562,574 | 672,457 | 2,551,374 | 33,146,636 | 3,083,408 | |||||||||||||||||||||||||
PL Inflation Managed | 17,529,642 | 17,973,914 | 1,151,032 | 484,246 | (4,419 | ) | 1,606,850 | 37,772,773 | 3,739,878 | ||||||||||||||||||||||||
PL Large-Cap Growth | 5,844,767 | 9,688,495 | — | 378,721 | (132,186 | ) | 5,021,900 | 20,044,255 | 2,599,774 | ||||||||||||||||||||||||
PL Comstock | 26,592,343 | 3,408,084 | 377,245 | 51,088 | (16,865 | ) | 14,945,682 | 45,255,401 | 4,233,433 | ||||||||||||||||||||||||
PL Mid-Cap Growth | 5,987,024 | 11,628,018 | — | 367,342 | 183,526 | 8,056,875 | 25,488,101 | 3,030,690 | |||||||||||||||||||||||||
PL Real Estate | 10,177,254 | 1,208,316 | 221,704 | 4,653,899 | (4,936,480 | ) | 14,006,140 | 16,023,035 | 1,734,095 | ||||||||||||||||||||||||
Total | $ | 295,578,222 | $ | 108,096,699 | $ | 6,326,841 | $ | 57,127,684 | $ | (30,604,627 | ) | $ | 175,714,887 | $ | 497,984,338 | ||||||||||||||||||
March 31, 2010 | |||||||||||||||||||||||||||||||||
Distributions | Net | Change in | |||||||||||||||||||||||||||||||
April 1, 2009 | Purchase | Received and | Sales | Realized | Unrealized | Market | Shares | ||||||||||||||||||||||||||
Fund/Underlying Fund | Market Value | Cost (1) | Reinvested (2) | Proceeds | Gain (Loss) (3) | Appreciation | Value | Balance | |||||||||||||||||||||||||
PL Portfolio Optimization Aggressive Fund | |||||||||||||||||||||||||||||||||
PL Small-Cap Growth | $ | 6,420,820 | $ | 2,240,534 | $ | — | $ | 3,676,151 | $ | (1,493,783 | ) | $ | 4,862,185 | $ | 8,353,605 | 887,737 | |||||||||||||||||
PL International Value | 17,388,051 | 2,865,449 | 287,409 | 9,778,547 | (8,766,328 | ) | 16,016,634 | 18,012,668 | 1,960,029 | ||||||||||||||||||||||||
PL Large-Cap Value | 10,069,419 | 8,024,233 | 273,805 | 158,314 | (76,868 | ) | 5,898,245 | 24,030,520 | 2,306,192 | ||||||||||||||||||||||||
PL Growth LT | 13,819,590 | 2,650,168 | 283,189 | 5,955,338 | (2,896,038 | ) | 8,290,221 | 16,191,792 | 1,444,406 | ||||||||||||||||||||||||
PL Mid-Cap Equity | 10,105,956 | 1,229,603 | 71,666 | 1,545,846 | (944,996 | ) | 7,245,816 | 16,162,199 | 1,866,305 | ||||||||||||||||||||||||
PL International Large-Cap | 11,699,698 | 4,923,390 | 177,527 | 3,167,702 | (1,473,149 | ) | 7,872,642 | 20,032,406 | 1,448,475 | ||||||||||||||||||||||||
PL Small-Cap Value | 8,726,477 | 1,061,057 | 138,578 | 4,032,450 | (1,596,838 | ) | 5,631,511 | 9,928,335 | 1,158,499 | ||||||||||||||||||||||||
PL Main Street Core | 15,463,313 | 2,301,491 | 184,679 | 1,075,250 | (520,864 | ) | 7,923,357 | 24,276,726 | 2,697,414 | ||||||||||||||||||||||||
PL Emerging Markets | 7,971,169 | 2,366,794 | 53,603 | 5,592,869 | (2,236,525 | ) | 7,659,787 | 10,221,959 | 838,553 | ||||||||||||||||||||||||
PL Managed Bond | — | 5,551,369 | 204,220 | 450,420 | 109,685 | 161,137 | 5,575,991 | 518,697 | |||||||||||||||||||||||||
PL Large-Cap Growth | 2,515,549 | 4,257,879 | — | 716,462 | (239,931 | ) | 2,286,687 | 8,103,722 | 1,051,066 | ||||||||||||||||||||||||
PL Comstock | 12,807,819 | 3,172,355 | 176,439 | 2,708,657 | (1,511,502 | ) | 8,385,624 | 20,322,078 | 1,901,036 | ||||||||||||||||||||||||
PL Mid-Cap Growth | 2,515,983 | 6,741,630 | — | 1,116,333 | (70,236 | ) | 4,028,376 | 12,099,420 | 1,438,694 | ||||||||||||||||||||||||
PL Real Estate | 5,737,829 | 1,591,664 | 116,135 | 4,170,117 | (3,211,561 | ) | 8,248,222 | 8,312,172 | 899,586 | ||||||||||||||||||||||||
Total | $ | 125,241,673 | $ | 48,977,616 | $ | 1,967,250 | $ | 44,144,456 | $ | (24,928,934 | ) | $ | 94,510,444 | $ | 201,623,593 | ||||||||||||||||||
(1) | Purchased cost excludes distributions received and reinvested. | |
(2) | Distributions received includes distributions from net investment income, if any, from the underlying funds. (3) Net realized gain or loss included distributions from capital gains, if any. | |
(3) | Net realized gain or loss included distributions from capital gains, if any. |
7. TAX CHARACTER OF DISTRIBUTIONS AND COMPONENTS OF DISTRIBUTABLE EARNINGS
The tax character of distributions paid during the year ended March 31, 2010, is as follows:
Distributions Paid From | ||||||||||||
Ordinary | Long-Term | Total | ||||||||||
Funds | Income | Capital Gains | Distributions | |||||||||
PL Portfolio Optimization Conservative | $ | 3,842,769 | $ | — | $ | 3,842,769 | ||||||
PL Portfolio Optimization Moderate-Conservative | 3,324,008 | — | 3,324,008 | |||||||||
PL Portfolio Optimization Moderate | 7,918,608 | — | 7,918,608 | |||||||||
PL Portfolio Optimization Moderate-Aggressive | 4,376,451 | — | 4,376,451 | |||||||||
PL Portfolio Optimization Aggressive | 1,107,118 | — | 1,107,118 | |||||||||
PL Money Market | 10,032 | 25 | 10,057 | |||||||||
PL International Value | 1,330,371 | — | 1,330,371 | |||||||||
PL Large-Cap Value | 1,750,061 | — | 1,750,061 | |||||||||
PL Short Duration Bond | 1,199,020 | — | 1,199,020 | |||||||||
PL Floating Rate Loan | 1,975,960 | — | 1,975,960 | |||||||||
PL Growth LT | 1,426,742 | — | 1,426,742 | |||||||||
PL Mid-Cap Equity | 432,366 | — | 432,366 | |||||||||
PL International Large-Cap | 975,278 | — | 975,278 | |||||||||
PL Small-Cap Value | 491,572 | — | 491,572 |
F-11
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
Distributions Paid From | ||||||||||||
Ordinary | Long-Term | Total | ||||||||||
Funds | Income | Capital Gains | Distributions | |||||||||
PL Main Street Core | $ | 1,045,156 | $ | — | $ | 1,045,156 | ||||||
PL Emerging Markets | 243,918 | — | 243,918 | |||||||||
PL Managed Bond | 12,379,527 | 1,275,371 | 13,654,898 | |||||||||
PL Inflation Managed | 4,584,817 | — | 4,584,817 | |||||||||
PL Comstock | 1,052,848 | — | 1,052,848 | |||||||||
PL Mid-Cap Growth | 316,397 | 298,218 | 614,615 | |||||||||
PL Real Estate | 485,508 | — | 485,508 |
The tax character of distributions paid during the year ended March 31, 2009, were as follows:
Distributions Paid From | ||||||||||||||||
Ordinary | Long-Term | Return of | Total | |||||||||||||
Funds | Income | Capital Gains | Capital | Distributions | ||||||||||||
PL Portfolio Optimization Conservative | $ | 3,923,732 | $ | 133,752 | $ | — | $ | 4,057,484 | ||||||||
PL Portfolio Optimization Moderate-Conservative | 4,398,954 | 1,105,969 | — | 5,504,923 | ||||||||||||
PL Portfolio Optimization Moderate | 10,527,424 | 6,873,046 | — | 17,400,470 | ||||||||||||
PL Portfolio Optimization Moderate-Aggressive | 6,485,309 | 9,839,791 | — | 16,325,100 | ||||||||||||
PL Portfolio Optimization Aggressive | 13 | 5,735,626 | — | 5,735,639 | ||||||||||||
PL Money Market | 549,555 | — | — | 549,555 | ||||||||||||
PL International Value | 2,637,765 | — | — | 2,637,765 | ||||||||||||
PL Large-Cap Value | 963,281 | 78,131 | — | 1,041,412 | ||||||||||||
PL Short Duration Bond | 2,359,289 | 1,688,071 | — | 4,047,360 | ||||||||||||
PL Floating Rate Loan | 1,416,589 | — | — | 1,416,589 | ||||||||||||
PL Growth LT | 6 | 1,903,765 | — | 1,903,771 | ||||||||||||
PL Mid-Cap Equity | 887,740 | — | — | 887,740 | ||||||||||||
PL International Large-Cap | 406,316 | 781,478 | — | 1,187,794 | ||||||||||||
PL Small-Cap Value | 543,357 | — | — | 543,357 | ||||||||||||
PL Main Street Core | 1,021,270 | — | — | 1,021,270 | ||||||||||||
PL Emerging Markets | 513,190 | 6,029,027 | — | 6,542,217 | ||||||||||||
PL Managed Bond | 15,798,381 | 1,061,640 | — | 16,860,021 | ||||||||||||
PL Inflation Managed | 12,137,058 | — | — | 12,137,058 | ||||||||||||
PL Comstock | 1,691,349 | — | — | 1,691,349 | ||||||||||||
PL Mid-Cap Growth | 99,273 | 2,922,430 | — | 3,021,703 | ||||||||||||
PL Real Estate | 587,647 | — | 23,684 | 611,331 |
As of March 31, 2010, the components of distributable earnings on a tax basis were as follows:
Net | ||||||||||||||||
Accumulated | Undistributed | Undistributed | Unrealized | |||||||||||||
Capital and | Ordinary | Long-Term | Appreciation | |||||||||||||
Funds | Other Losses | Income | Capital Gains | (Depreciation) (1) | ||||||||||||
PL Portfolio Optimization Conservative | $ | (2,150,042 | ) | $ | 779,728 | $ | — | $ | 7,249,486 | |||||||
PL Portfolio Optimization Moderate-Conservative | (5,923,473 | ) | 1,499,261 | — | 4,729,485 | |||||||||||
PL Portfolio Optimization Moderate | (20,500,686 | ) | 4,547,713 | — | (1,706,402 | ) | ||||||||||
PL Portfolio Optimization Moderate-Aggressive | (33,751,430 | ) | 3,046,906 | — | (13,372,869 | ) | ||||||||||
PL Portfolio Optimization Aggressive | (25,230,267 | ) | 1,134,047 | — | (5,899,354 | ) | ||||||||||
PL Money Market | — | — | 148 | — | ||||||||||||
PL Small-Cap Growth | (11,360,287 | ) | — | — | 5,705,076 | |||||||||||
PL International Value | (47,530,599 | ) | 468,253 | — | 2,961,558 | |||||||||||
PL Large-Cap Value | (16,387,956 | ) | 467,480 | — | 18,524,450 | |||||||||||
PL Short Duration Bond | (115,124 | ) | 11,214 | — | 607,786 | |||||||||||
PL Floating Rate Loan | (1,147,360 | ) | 4,801 | — | 1,280,599 | |||||||||||
PL Growth LT | (26,636,303 | ) | — | — | 16,656,144 | |||||||||||
PL Mid-Cap Equity | (27,280,380 | ) | 47,030 | — | 15,683,944 | |||||||||||
PL International Large-Cap | (11,772,430 | ) | 926,186 | — | 11,161,207 | |||||||||||
PL Small-Cap Value | (9,914,886 | ) | 78,018 | — | 5,815,172 | |||||||||||
PL Main Street Core | (37,634,222 | ) | 95,631 | — | 21,210,304 | |||||||||||
PL Emerging Markets | (5,074,455 | ) | — | — | 14,306,254 | |||||||||||
PL Managed Bond | — | 2,687,790 | 898,386 | 2,560,288 | ||||||||||||
PL Inflation Managed | (2,055,282 | ) | 922,958 | — | (1,174,200 | ) | ||||||||||
PL Large-Cap Growth | (6,317,156 | ) | — | — | 11,275,926 | |||||||||||
PL Comstock | (32,747,659 | ) | 236,840 | — | 10,906,724 | |||||||||||
PL Mid-Cap Growth | (5,113 | ) | 338,779 | 185,699 | 11,027,887 | |||||||||||
PL Real Estate | (13,200,079 | ) | 24,530 | — | 8,813,007 |
(1) | Amount includes appreciation and depreciation on investments, derivatives, and assets and liabilities in foreign currencies. |
The components of the accumulated capital and other losses as of March 31, 2010, are summarized in Note 8.
F-12
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
8. FEDERAL INCOME TAX INFORMATION
Each Fund intends to continue to qualify as a regulated investment company and distribute substantially all its taxable income and capital gains to its shareholders. Each Fund presented in the first table below declared and paid sufficient dividends on net investment income and capital gains distributions during the year ended March 31, 2010, to qualify as a regulated investment company and is not required to pay Federal income tax under Subchapter M of the Internal Revenue Code. Accordingly, no provision for Federal income taxes is required in the financial statements. Required distributions are based on net investment income and net realized gains determined on a tax basis and may differ from such amounts for financial reporting purposes (see Note 2C). In addition, the year in which amounts are distributed may differ from the year in which the net investment income is earned and the net gains are realized by each Fund.
Net capital loss carryovers and post-October capital losses, if any, as of March 31, 2010, are available to offset future realized capital gains and thereby reduce future capital gains distributions. Post-October foreign currency losses, if any, will offset future net investment income and thereby reduce future ordinary income distributions. The net capital loss carryovers and the post-October capital and foreign currency losses deferred as of March 31, 2010, were as follows:
Post- | Post-October | Accumulated | ||||||||||||||||||||||||||||||||||||||
Net Capital | October | Foreign | Capital and | |||||||||||||||||||||||||||||||||||||
Loss | Net Capital Loss Carryover Expiring in | Capital Loss | Currency | Other | ||||||||||||||||||||||||||||||||||||
Funds | Carryover | 2013 and Prior | 2014 | 2015 | 2016 | 2017 | 2018 | Deferral | Loss Deferral | Losses | ||||||||||||||||||||||||||||||
PL Portfolio Optimization Conservative | $ | (2,150,042 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (2,150,042 | ) | $ | — | $ | — | $ | (2,150,042 | ) | |||||||||||||||||
PL Portfolio Optimization Moderate-Conservative | (5,923,473 | ) | — | — | — | — | (1,171,196 | ) | (4,752,277 | ) | — | — | (5,923,473 | ) | ||||||||||||||||||||||||||
PL Portfolio Optimization Moderate | (20,500,686 | ) | — | — | — | — | (3,967,837 | ) | (16,532,849 | ) | — | — | (20,500,686 | ) | ||||||||||||||||||||||||||
PL Portfolio Optimization Moderate-Aggressive | (33,692,898 | ) | — | — | — | — | (3,214,516 | ) | (30,478,382 | ) | (58,532 | ) | — | (33,751,430 | ) | |||||||||||||||||||||||||
PL Portfolio Optimization Aggressive | (24,940,334 | ) | — | — | — | — | (2,128,707 | ) | (22,811,627 | ) | (289,933 | ) | — | (25,230,267 | ) | |||||||||||||||||||||||||
PL Small-Cap Growth | (11,360,287 | ) | — | — | — | — | (5,477,816 | ) | (5,882,471 | ) | — | — | (11,360,287 | ) | ||||||||||||||||||||||||||
PL International Value | (46,556,772 | ) | — | — | — | — | (7,806,521 | ) | (38,750,251 | ) | (973,827 | ) | — | (47,530,599 | ) | |||||||||||||||||||||||||
PL Large-Cap Value | (16,387,770 | ) | — | — | — | — | (5,885,797 | ) | (10,501,973 | ) | — | (186 | ) | (16,387,956 | ) | |||||||||||||||||||||||||
PL Short Duration Bond | (115,124 | ) | — | — | — | — | — | (115,124 | ) | — | — | (115,124 | ) | |||||||||||||||||||||||||||
PL Floating Rate Loan | (1,119,961 | ) | — | — | — | — | (439,943 | ) | (680,018 | ) | (27,399 | ) | — | (1,147,360 | ) | |||||||||||||||||||||||||
PL Growth LT | (26,636,303 | ) | — | — | — | — | (7,353,330 | ) | (19,282,973 | ) | — | — | (26,636,303 | ) | ||||||||||||||||||||||||||
PL Mid-Cap Equity | (27,280,380 | ) | — | — | — | — | (15,810,724 | ) | (11,469,656 | ) | — | — | (27,280,380 | ) | ||||||||||||||||||||||||||
PL International Large-Cap | (10,448,857 | ) | — | — | — | — | (2,153,723 | ) | (8,295,134 | ) | (1,323,573 | ) | — | (11,772,430 | ) | |||||||||||||||||||||||||
PL Small-Cap Value | (9,914,886 | ) | — | — | — | (32,441 | ) | (1,686,569 | ) | (8,195,876 | ) | — | — | (9,914,886 | ) | |||||||||||||||||||||||||
PL Main Street Core | (37,183,558 | ) | — | — | — | — | (13,408,365 | ) | (23,775,193 | ) | (450,664 | ) | — | (37,634,222 | ) | |||||||||||||||||||||||||
PL Emerging Markets | (5,067,942 | ) | — | — | — | — | — | (5,067,942 | ) | — | (6,513 | ) | (5,074,455 | ) | ||||||||||||||||||||||||||
PL Inflation Managed | (2,055,282 | ) | — | — | — | — | (141,727 | ) | (1,913,555 | ) | — | — | (2,055,282 | ) | ||||||||||||||||||||||||||
PL Large-Cap Growth (1) | (6,317,156 | ) | (64,425 | ) | — | (1,076,170 | ) | — | (4,424,082 | ) | (752,479 | ) | — | — | (6,317,156 | ) | ||||||||||||||||||||||||
PL Comstock | (32,321,233 | ) | — | — | — | — | (12,106,786 | ) | (20,214,447 | ) | (426,426 | ) | — | (32,747,659 | ) | |||||||||||||||||||||||||
PL Mid-Cap Growth | — | — | — | — | — | — | — | — | (5,113 | ) | (5,113 | ) | ||||||||||||||||||||||||||||
PL Real Estate | (13,082,495 | ) | — | — | — | — | (2,282,346 | ) | (10,800,149 | ) | (116,875 | ) | (709 | ) | (13,200,079 | ) |
(1) | The availability of a certain amount of capital loss carryover which was acquired on December 31, 2003 in the merger with the PF Putnam Research Fund, may be limited in a given year. The net capital loss carryover for 2013 and prior includes $64,425 net capital loss carryover expiring in 2011. |
The aggregate Federal tax cost of investments and the composition of unrealized appreciation and depreciation on investments and net unrealized appreciation and/or depreciation on derivatives and assets and liabilities in foreign currencies as of March 31, 2010, were as follows:
Gross | Gross | Net Unrealized | Net Unrealized | |||||||||||||||||||||
Total Cost of | Unrealized | Unrealized | Appreciation | Appreciation | Net Unrealized | |||||||||||||||||||
Investments | Appreciation | Depreciation | (Depreciation) | (Depreciation) | Appreciation | |||||||||||||||||||
Funds | on Tax Basis | on Investments | on Investments | on Investments | on Other (1) | (Depreciation) | ||||||||||||||||||
PL Portfolio Optimization Conservative | $ | 149,436,751 | $ | 10,833,536 | $ | (3,584,050 | ) | $ | 7,249,486 | $ | — | $ | 7,249,486 | |||||||||||
PL Portfolio Optimization Moderate-Conservative | 168,366,425 | 7,589,120 | (2,859,635 | ) | 4,729,485 | — | 4,729,485 | |||||||||||||||||
PL Portfolio Optimization Moderate | 549,581,763 | 16,577,653 | (18,284,055 | ) | (1,706,402 | ) | — | (1,706,402 | ) | |||||||||||||||
PL Portfolio Optimization Moderate-Aggressive | 511,735,451 | 16,620,848 | (29,993,717 | ) | (13,372,869 | ) | — | (13,372,869 | ) | |||||||||||||||
PL Portfolio Optimization Aggressive | 207,522,947 | 13,046,985 | (18,946,339 | ) | (5,899,354 | ) | — | (5,899,354 | ) | |||||||||||||||
PL Money Market | 34,611,815 | — | — | — | — | — | ||||||||||||||||||
PL Small-Cap Growth | 19,916,821 | 6,460,758 | (755,682 | ) | 5,705,076 | — | 5,705,076 | |||||||||||||||||
PL International Value | 83,649,279 | 9,590,756 | (6,639,665 | ) | 2,951,091 | 10,467 | 2,961,558 |
F-13
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
Gross | Gross | Net Unrealized | Net Unrealized | |||||||||||||||||||||
Total Cost of | Unrealized | Unrealized | Appreciation | Appreciation | Net Unrealized | |||||||||||||||||||
Investments | Appreciation | Depreciation | (Depreciation) | (Depreciation) | Appreciation | |||||||||||||||||||
Funds | on Tax Basis | on Investments | on Investments | on Investments | on Other(1) | (Depreciation) | ||||||||||||||||||
PL Large-Cap Value | $ | 143,395,494 | $ | 21,324,123 | $ | (2,800,499 | ) | $ | 18,523,624 | $ | 826 | $ | 18,524,450 | |||||||||||
PL Short Duration Bond | 73,650,760 | 824,263 | (216,126 | ) | 608,137 | (351 | ) | 607,786 | ||||||||||||||||
PL Floating Rate Loan | 54,136,604 | 1,859,504 | (578,905 | ) | 1,280,599 | — | 1,280,599 | |||||||||||||||||
PL Growth LT | 72,319,055 | 18,836,816 | (2,182,224 | ) | 16,654,592 | 1,552 | 16,656,144 | |||||||||||||||||
PL Mid-Cap Equity | 86,471,811 | 17,783,083 | (2,099,139 | ) | 15,683,944 | — | 15,683,944 | |||||||||||||||||
PL International Large-Cap | 96,165,174 | 17,708,938 | (6,552,229 | ) | 11,156,709 | 4,498 | 11,161,207 | |||||||||||||||||
PL Small-Cap Value | 32,309,444 | 7,145,769 | (1,330,597 | ) | 5,815,172 | — | 5,815,172 | |||||||||||||||||
PL Main Street Core | 126,703,235 | 22,555,578 | (1,345,274 | ) | 21,210,304 | — | 21,210,304 | |||||||||||||||||
PL Emerging Markets | 32,844,584 | 16,260,462 | (1,943,609 | ) | 14,316,853 | (10,599 | ) | 14,306,254 | ||||||||||||||||
PL Managed Bond | 248,353,307 | 6,434,464 | (6,492,474 | ) | (58,010 | ) | 2,618,298 | 2,560,288 | ||||||||||||||||
PL Inflation Managed | 172,175,889 | 4,045,772 | (5,701,659 | ) | (1,655,887 | ) | 481,687 | (1,174,200 | ) | |||||||||||||||
PL Large-Cap Growth | 50,111,824 | 11,417,990 | (142,064 | ) | 11,275,926 | — | 11,275,926 | |||||||||||||||||
PL Comstock | 117,044,870 | 18,017,460 | (7,110,736 | ) | 10,906,724 | — | 10,906,724 | |||||||||||||||||
PL Mid-Cap Growth | 44,366,094 | 13,230,893 | (2,203,006 | ) | 11,027,887 | — | 11,027,887 | |||||||||||||||||
PL Real Estate | 27,415,818 | 11,048,536 | (2,235,529 | ) | 8,813,007 | — | 8,813,007 |
(1) | Other includes net appreciation or depreciation on derivatives and assets and liabilities in foreign currencies. |
As of and during the year ended March 31, 2010, none of the Funds had liabilities for any unrecognized tax benefits. During the year ended March 31, 2010, none of the Funds incurred any interest or penalties.
Each Fund’s tax returns remain subject to examination by Federal and State tax authorities (principal state jurisdictions include California and Delaware) for the tax years ended March 31, 2008 through March 31, 2010 for Federal purposes and March 31, 2007 through March 31, 2010 for state purposes.
9. PURCHASES AND SALES OF SECURITIES
The cost of purchases and proceeds from sales of securities (excluding short-term investments and the PL Money Market Fund since it trades exclusively in short-term debt securities) for the year ended March 31, 2010, is as follows:
U.S. Government Securities | Other Securities | |||||||||||||||
Funds | Purchases | Sales | Purchases | Sales | ||||||||||||
PL Portfolio Optimization Conservative | $ | — | $ | — | $ | 82,609,699 | $ | 24,003,764 | ||||||||
PL Portfolio Optimization Moderate-Conservative | — | — | 62,657,296 | 14,018,934 | ||||||||||||
PL Portfolio Optimization Moderate | — | — | 153,334,362 | 40,673,999 | ||||||||||||
PL Portfolio Optimization Moderate-Aggressive | — | — | 115,364,913 | 57,127,684 | ||||||||||||
PL Portfolio Optimization Aggressive | — | — | 51,200,774 | 44,144,456 | ||||||||||||
PL Small-Cap Growth | — | — | 19,809,203 | 29,564,792 | ||||||||||||
PL International Value | — | — | 47,162,028 | 72,831,197 | ||||||||||||
PL Large-Cap Value | — | — | 82,488,452 | 18,500,104 | ||||||||||||
PL Short Duration Bond | 81,045,747 | 83,216,901 | 29,059,135 | 10,286,721 | ||||||||||||
PL Floating Rate Loan | — | — | 59,979,990 | 43,367,666 | ||||||||||||
PL Growth LT | — | — | 45,406,697 | 59,957,959 | ||||||||||||
PL Mid-Cap Equity | — | — | 64,602,152 | 59,079,976 | ||||||||||||
PL International Large-Cap | — | — | 28,249,092 | 21,215,708 | ||||||||||||
PL Small-Cap Value | — | — | 9,639,143 | 12,565,352 | ||||||||||||
PL Main Street Core | — | — | 166,085,622 | 148,491,614 | ||||||||||||
PL Emerging Markets | — | — | 21,114,453 | 27,885,624 | ||||||||||||
PL Managed Bond | 601,034,720 | 691,554,811 | 61,046,643 | 45,264,789 | ||||||||||||
PL Inflation Managed | 387,164,665 | 382,926,163 | 48,949,528 | 28,489,294 | ||||||||||||
PL Large-Cap Growth | — | — | 77,767,124 | 47,869,188 | ||||||||||||
PL Comstock | — | — | 38,314,529 | 27,145,432 | ||||||||||||
PL Mid-Cap Growth | — | — | 29,830,884 | 12,607,257 | ||||||||||||
PL Real Estate | — | — | 7,809,991 | 12,580,662 |
F-14
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
10. FAIR VALUE MEASUREMENTS AND DISCLOSURES
U.S. GAAP establishes and requires that the Trust characterizes its holdings as Level 1, Level 2 or Level 3 based upon the various inputs or methodologies used to value the holdings. The three-tier hierarchy of inputs is summarized in the three broad levels listed below:
• | Level 1 – Quoted prices in active markets for identical holdings | ||
• | Level 2 – Significant observable market-based inputs, other than Level 1 quoted prices, or unobservable inputs that are corroborated by market data | ||
• | Level 3 – Significant unobservable inputs that are not corroborated by observable market data |
The inputs or methodologies used for valuing each Fund’s holdings are not necessarily an indication of the risks associated with investing in those holdings. For example, money market holdings are valued using amortized cost in accordance with the rules under the 1940 Act. Generally, amortized cost approximates the current fair value of a holding, but since the value is not obtained from a quoted price in an active market, such holdings are reflected as Level 2. Foreign holdings that are valued with the assistance of a statistical research service (as described in Note 2A) are reflected as Level 2. For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported market values that presents changes attributable to total realized and unrealized gains or losses, purchase and sales, and transfers in/out of Level 3 during the period. In accordance with the requirements of U.S. GAAP, a summary of each Fund’s holdings as of March 31, 2010 as categorized under the three-tier hierarchy of inputs can be found in the Notes to Schedule of Investments section of each Fund’s Schedule of Investments.
The following is a description of valuation inputs and techniques that the Trust currently utilizes to fair value each major category of assets and liabilities in accordance with the additional guidance under U.S. GAAP:
Equity Securities (Common and Preferred Stock) – Equity securities (foreign or domestic) that are actively traded on a securities exchange are fair valued based on quoted prices from the applicable exchange, and to the extent valuation adjustments are not applied to these securities, they are categorized as Level 1. Equity securities traded on inactive markets and certain foreign equity securities are fair valued using significant other observable inputs which include broker-dealer quotes, recently executed transactions adjusted for changes in the benchmark index, or evaluated price quotes received from pricing vendors that take into account the integrity of the market sector and issuer, the individual characteristics of the security, and information received from broker-dealers and other market sources pertaining to the issuer or security. To the extent that these inputs are observable and timely, the fair values of these securities would be categorized as Level 2; otherwise the fair values would be categorized as Level 3.
U.S. Treasury Obligations – U.S. Treasuries are fair valued based on pricing models that evaluate the mean between the most recently published bid and ask price. The models also take into consideration data received from active market makers and inter-broker-dealer brokers, yield curves, and the spread over comparable U.S. Treasury issues. The spreads change daily in response to market conditions and are generally obtained from the new issue market and broker-dealer sources. To the extent that these inputs are observable and timely, the fair values of U.S. Treasury obligations would be categorized as Level 2; otherwise the fair values would be categorized as Level 3.
Government Sponsored Enterprise and Mortgage-Backed Securities – Government sponsored enterprise and mortgage-backed securities are fair valued using pricing models based on inputs that include issuer type, coupon, and cash flows, mortgage prepayment projection tables and Adjustable Rate Mortgage evaluations that incorporate index data, periodic and life caps, and the next coupon reset date, and the convertibility of the bond. To the extent that these inputs are observable and timely, the fair values of Government sponsored enterprise and mortgage-backed securities would be categorized as Level 2; otherwise the fair value would be categorized as Level 3.
Municipal Bonds – Municipal bonds are fair valued based on pricing models that takes into account, among other factors, information received from market makers and broker-dealers, current trades, bid-want lists, offerings, market movements, the callability of the bond, state of issuance, benchmark yield curves, and bond insurance. To the extent that these inputs are observable and timely, the fair values of municipal bonds would be categorized as Level 2; otherwise the fair values would be categorized as Level 3.
Foreign Government Bonds and Notes – Foreign government bonds and notes are fair valued based on discounted cash flow models that incorporates option adjusted spreads along with benchmark curves and credit spreads. In addition, international bond markets are monitored regularly for information pertaining to the issuer and/or the specific issue. To the extent that these inputs are observable and timely, the fair values of foreign government bonds and notes would be categorized as Level 2; otherwise the fair values would be categorized as Level 3.
Corporate Bonds – Corporate bonds held by a Fund are generally comprised of two main categories consisting of investment grade bonds and high yield bonds. Investment grade bonds are reported at fair value using various inputs and techniques, which include broker-dealer quotations, live trading levels, recently executed transactions in securities of the issuer or comparable issuers, and options adjusted spread models that include base curve and spread curve inputs. Adjustments to individual bonds can be applied to recognize trading differences compared to other bonds issued by the same issuer. Fair values for high yield bonds are based primarily on broker-dealer quotations from relevant market makers and recently executed transactions in securities of the issuer or comparable issuers. The broker-dealer quotations received are supported by credit analysis of the issuer that takes into consideration credit quality assessments, daily trading activity, and the activity of the underlying equities, listed bonds and sector-specific trends. To the extent that these inputs are observable and timely, the fair values of corporate bonds would be categorized as Level 2; otherwise the fair values would be categorized as Level 3.
F-15
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
Asset-Backed Securities and Collateralized Mortgage Obligations – Asset-backed securities and collateralized mortgage obligations are fair valued using pricing models based on a security’s average life volatility. The models also take into account tranche characteristics such as coupon average life, collateral types, ratings, the issuer and tranche type, underlying collateral and performance of the collateral, and discount margin for certain floating rate issues. To the extent that these inputs are observable and timely, the fair values of asset-backed securities and collateralized mortgage obligations would be categorized as Level 2; otherwise the fair values would be categorized as Level 3.
Futures Contracts – Futures contracts and options on futures contracts are traded on commodity exchanges and are fair valued based on quoted prices from the applicable exchange, and to the extent valuation adjustments are not applied to futures contracts, they are categorized as Level 1. To the extent that valuation adjustments are observable and timely, the fair values of futures contracts would be categorized as Level 2; otherwise the fair values would be categorized as Level 3.
Options Contracts — Exchange listed options contracts are traded on securities exchanges and are fair valued based on quoted prices from the applicable exchange, and to the extent valuation adjustments are not applied or mean variation to exchange listed options contracts, they are categorized as Level 1. If valuation adjustments are applied and such adjustments are observable and timely, the fair values of exchange listed options contracts would be categorized as Level 2; otherwise the fair values would be categorized as Level 3. Options contracts traded over the counter (“OTC”) are fair valued based on pricing models that incorporates various inputs such as interest rates, credit spreads, currency exchange rates and volatility measurements for in-the-money, at-the-money, and out-of-the-money contracts based on a given strike price. To the extent that these inputs are observable and timely, the fair values of OTC options contracts would be categorized as Level 2; otherwise the fair values would be categorized as Level 3.
Forward Foreign Currency Contracts – Forward foreign currency contracts are fair valued using various inputs and techniques, which include broker-dealer quotations, actual trading information, and foreign currency exchange rates gathered from leading market makers and foreign currency exchange trading centers throughout the world. To the extent that these inputs are observable and timely, the fair values of forward foreign currency contracts would be categorized as Level 2; otherwise the fair values would be categorized as Level 3.
Interest Rate Swaps – Interest rate swaps are fair valued using pricing models that are based on real-time intraday snap shots of relevant interest rate curves that are built using the most actively traded securities for a given maturity. The pricing models also incorporate cash and money market rates. In addition, market data pertaining to interest rate swaps are monitored regularly to ensure that interest rates are properly depicting the current market rate. To the extent that these inputs are observable and timely, the fair values of interest rate swaps would be categorized as Level 2; otherwise the fair values would be categorized as Level 3.
Credit Default Swaps — Credit default swaps are fair valued using pricing models that take into account, among other factors, information received from market makers and broker-dealers, default probabilities from index specific credit spread curves, recovery rates, and cash flows. To the extent that these inputs are observable and timely, the fair values of credit default swaps would be categorized as Level 2; otherwise the fair values would be categorized as Level 3.
Total Return Swaps — Total Return swaps are fair valued using pricing models that take into account among other factors, index spread curves, nominal values, modified duration values and cash flows. To the extent that these inputs are observable and timely, the fair values of total return swaps would be categorized as Level 2; otherwise the fair values would be categorized as Level 3.
Senior Loans – Senior Loans are fair valued based on a quoted price received from a single broker-dealer or an average of quoted prices received from multiple dealers or valued relative to other benchmark securities when broker-dealer quotes are unavailable. To the extent that these inputs are observable, the fair values of Senior Loans would be categorized as Level 2; otherwise the fair values would be categorized as Level 3.
11. DERIVATIVE INVESTMENT HOLDINGS CATEGORIZED BY RISK EXPOSURE
Effective April 1, 2009 the Trust implemented new guidance under ASC Topic 815, Derivatives and Hedging, (“ASC 815”). The new guidance requires all entities to enhance disclosures in their financial statements about their derivative and hedging activities to enable financial statement users to understand how and why the entity uses derivative investments to manage risks, how derivative investments are accounted for, and how derivative investments affect the entity’s financial position, results of operations, and cash flows. For financial reporting purposes under ASC 815, the Trust does not offset fair value amounts recognized for derivative instruments and fair value amounts recognized for the right to reclaim cash collateral (receivables) or the obligation to return cash collateral (payables) arising from derivative instruments recognized at fair value executed with the same counterparty under a master netting arrangement.
Derivative instruments are investments whose values are tied to the value of an underlying security or asset, a group of assets, interest rates, exchange rates, currency or an index. Certain Funds are permitted to invest in derivative instruments, including, but not limited to, futures contracts, options contracts, forward foreign currency contracts, interest rate swaps, and credit default swaps. Derivatives may have little or no initial cash investment value relative to their market value exposure and therefore can produce significant gains or losses in excess of their cost. This is sometimes referred to as leverage. Leverage can magnify a Fund’s gains and losses and therefore increase its volatility. A Fund’s investments in derivatives may increase, decrease or change the level or types of exposure to certain risk factors. The primary risks a Fund may attempt to manage through investing in derivative instruments include, but are not limited to, interest rate, foreign investments and currency, price volatility, and credit (including counterparty) risks. The derivative investment holdings as of March 31, 2010 as disclosed in the Notes to Schedule of Investments and the amounts of realized gains and losses and changes in unrealized appreciation and depreciation on derivative investment holdings during the year ending March 31, 2010 as disclosed in the Statements of Operations serve as indicators of the volume of derivative activity of the Trust.
F-16
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
Market Risks Managed By Investing In Derivatives
Interest rate risk – A Fund may be exposed to interest rate risk through investments in fixed income securities. Interest rate risk is the risk that fixed income securities will decline in value as a result of changes in interest rates. For example, the value of bonds, fixed rate loans and short-term money market instruments may decline in value when interest rates rise. Fixed income securities with longer durations tend to be more sensitive to changes in interest rates, making them more volatile than fixed income securities with shorter durations or money market instruments. Therefore, duration is a potentially useful tool to measure the sensitivity of a fixed income security’s yield (market price to interest rate movement). To manage these risks, certain Funds may invest in derivative instruments tied to interest rates.
Foreign investments and currency risk - A Fund may be exposed to foreign investments and/or currency risk through direct investment in securities or through options, futures or currency transactions. The prices of foreign securities that are denominated in foreign currencies are affected by the value of the U.S. dollar. With respect to securities denominated in foreign currencies, in general, as the value of the U.S. dollar rises, the U.S. dollar price of a foreign security will fall. As the value of the U.S. dollar falls, the U.S. dollar value of the foreign security will rise. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons. Foreign investments may be riskier than U.S. investments for many reasons, including changes in currency exchange rates, unstable political and economic conditions, a lack of adequate and timely company information, differences in the way securities markets operate, relatively lower market liquidity, less stringent financial reporting and accounting guidance and controls, less secure foreign banks or securities depositories than those in the U.S., foreign taxation issues and foreign controls on investments. As a result, a Fund’s investments in foreign currency denominated securities and other foreign investments may reduce the returns of the Fund. To manage these risks, certain Funds may invest in derivative instruments tied to foreign investments and currencies.
Price volatility risk – Derivatives tied to equity and fixed income securities are exposed to potential price volatility. Fixed income securities are affected by many factors, including prevailing interest rates, market conditions and market liquidity. Volatility of below investment grade fixed income securities (including loans) may be relatively greater than for investment grade fixed income securities. Equity securities tend to go up or down in value, sometimes rapidly and unpredictably. The prices of equity securities change in response to many factors, including a company’s historical and prospective earnings, the value of its assets, general economic conditions, interest rates, investor perceptions and market liquidity. Due to the complexities of markets, events in one market or sector may adversely impact other markets or sectors. To manage these risks, certain Funds may invest in various derivative instruments. Derivative instruments may be used to manage a Fund’s exposure to price volatility risk but may also be subject to greater price volatility than investments in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments.
Credit and Counterparty risk - Credit risk is the risk that a fixed income security’s issuer (or borrower or counterparty) will be unable or unwilling to meet its financial obligations (e.g. may not be able to make principal and/or interest payments when they are due or otherwise default on other financial terms) and/or may go bankrupt. This is also sometimes described as counterparty risk. A Fund may lose money if the issuer or guarantor of fixed income security, or counterparty of a derivative contract, repurchase or reverse repurchase agreement, or a loan of Fund securities, is unable or unwilling to make timely principal and/or interest payments, or to otherwise honor its obligations. A Fund may attempt to minimize concentrations of credit risk by undertaking transactions with a large number of borrowers or counterparties on recognized and reputable exchanges. A Fund’s investments in fixed income (debt) holdings may range in quality from those rated in the lowest category in which it is permitted to invest to those rated in the highest category by a rating agency, or if unrated, determined by the manager to be of comparable quality. Similar to credit risk, a Fund may be exposed to counterparty risk, or the risk that an institution or other entity with which a Fund has unsettled or open transactions with default. Financial assets, which potentially expose a Fund to counterparty risk, consists mainly of cash due from counterparties and investments. Certain managers may attempt to minimize credit risks to a Fund by performing extensive reviews of each counterparty, entering into transactions with counterparties that the manager believes to be creditworthy at the time of the transaction and requiring the posting of collateral in applicable transactions. To manage these risks, certain Funds may invest in derivative instruments tied to a security issuers’ financial strength.
A Fund’s transactions in listed securities are settled/paid for upon delivery with their counterparties. Therefore, the risk of counterparty default for listed securities is considered minimal, as delivery of securities sold is only made once a Fund has received payment. Payment is made on a purchase once the securities have been delivered by the counterparty. The trade will fail if either party fails to meet its obligations.
Credit Related Contingent Features
Certain Funds are parties to various agreements, including by not limited to International Swaps and Derivatives Agreements, Master Repurchase Agreements, and Master Securities Forward Transactions Agreements (collectively “Master Agreements”), which govern the terms of certain transactions with select counterparties. These Master Agreements generally include provisions for general obligations, representations, agreements, collateral and certain events of default or termination, such as credit related contingent features. These provisions reduce the counterparty risk associated with relevant transactions by allowing a Fund or its counterparties to elect to terminate early and cause settlement of all outstanding transactions if a triggering event occurs under the applicable Master Agreement. These triggering events include, but are not limited to, bankruptcy, failure to make timely payments, restructuring, obligation acceleration, obligation default, a material decline in net assets, decline in credit rating or repudiation/moratorium. Thus, if a credit related contingent feature is triggered, it would allow a Fund or its counterparty to close out all transactions under the agreement and demand payment or additional
F-17
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
collateral to cover their exposure to the other counterparty. Any election made by a counterparty to early terminate a transaction could be material to a Fund’s financial statements. To reduce credit and counterparty risk associated with transactions, a Fund may enter into master netting arrangements to the extent that if an event of default occurs, all amounts with the counterparty are terminated and settled on a net basis. A Fund’s overall exposure to credit risk, subject to master netting arrangements, can change substantially within a short period, as it is affected by each transaction subject to the arrangement.
Futures Contracts
In the normal course of pursuing their investment objectives, certain Funds are subject to price volatility, interest rate, currency, credit and other risks relating to a Fund’s investments. Certain Funds may enter into futures contracts to manage these risks, and may also use futures for purposes of hedging, duration management, as a substitute for securities, to increase returns, for currency hedging, or to otherwise help achieve a Fund’s investment goal. Futures contracts are also subject to the possibility of illiquid markets, and the possibility of an imperfect correlation between the value of the instruments and the underlying securities. Initial margin deposits are made upon entering into futures contracts and can be funded with either cash or securities. During the period a futures contract is open, changes in the value of the contract are recognized as unrealized appreciation or depreciation by marking-to-market on a daily basis to reflect the market value of the contract at the end of each day’s trading. Variation margin receivables or payables represent the difference between the change in unrealized appreciation and depreciation on the open contracts and the cash deposits made on the margin accounts. When the contract is closed, a Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s cost of the contract. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures present minimal counterparty credit risk since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.
Options Contracts
In the normal course of pursuing their investment objectives, certain Funds are subject to price volatility risk, interest rate risk, and foreign investments and currency risk. Certain Funds may enter into options contracts to manage these risks, and may also write and/or purchase call and put options on securities, futures, interest rate swaps, credit default swaps, or currencies for purposes of hedging, duration management, as a substitute for securities, to increase returns, for currency hedging or to otherwise help achieve a Fund’s investment goal. Writing put options or purchasing call options tends to increase a Fund’s exposure to the underlying instrument. Writing call options or purchasing put options tends to decrease a Fund’s exposure to the underlying instrument. When a Fund writes or purchases a call or put option, an amount equal to the premium received or paid by the Fund is included in a Fund’s Statement of Assets and Liabilities as a liability or an investment, respectively, and subsequently adjusted to the current market value, based on the quoted daily settlement price of the option written or purchased. Certain options may be written or purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. Premiums received or paid from writing or purchasing options, which expire unexercised, are treated by a Fund on the expiration date as realized gains or losses. The difference between the premium and the amount paid or received on a closing purchase or sale transaction, including brokerage commissions, is also treated as a realized gain or loss. If an option is exercised, the premium paid or realized is added to the cost of the purchase or proceeds from the sale in determining whether the Fund has realized a gain or loss on investment transactions. A Fund, as a writer of an option, may have no control over whether the underlying instrument may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the underlying written option. In addition, an illiquid market may make it difficult for a Fund to close out an option contract. The maximum risk of loss associated with writing put options is limited to the exercised fair value of the option contract. The maximum risk of loss associated with writing call options is potentially unlimited. Listed options contracts present minimal counterparty credit risk since they are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded options, guarantees the options against default. A Fund’s maximum risk of loss from counterparty credit risk related to OTC options contracts is limited to the premium paid.
Forward Foreign Currency Contracts
In the normal course of pursuing their investment objectives, certain Funds are subject to foreign investment and currency risk, the risk that counterparties are unable to meet the terms of the contracts or that the value of the foreign currencies change unfavorably versus the U.S. dollar. Certain Funds may enter into forward foreign currency contracts (“forward contracts”) for the purpose of hedging, duration management, as a substitute for securities, to increase returns, for currency hedging or to otherwise help achieve a Fund’s investment goals. Forward contracts can help a Fund manage the risk of changes in currency exchange rates. These contracts are marked-to-market daily at the applicable forward currency translation rates. A Fund records realized gains or losses at the time the forward contract is closed. A forward contract is extinguished through a closing transaction or upon delivery of the currency or entering an offsetting contract. A Fund’s maximum risk of loss from counterparty credit risk related to forward contracts is the fair value of the contract. The risk may be mitigated to some extent if a master netting arrangement between a Fund and the counterparty is in place and to the extent a Fund obtains collateral to cover the Fund’s exposure to the counterparty.
Swaps
Swaps involve commitments to exchange components of income (generally interest or returns) pegged to specified underlying assets based on a notional principal amount. In connection with these agreements, securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency.
F-18
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
Swaps are marked-to-market daily based upon values received from third party vendors or quotations from market makers. Unrealized appreciation is recorded as an asset and unrealized depreciation is recorded as a liability on the Statements of Assets and Liabilities. The change in value of swaps, including accruals of periodic amounts of interest to be paid or received on swaps, is recorded as unrealized appreciation or depreciation in the Statements of Operations. Payments received or made at the beginning of the measurement period are reflected as such in the Statements of Assets and Liabilities and represent payments made or received upon entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). These upfront payments are included in the calculation of realized gain or loss in the Statements of Operations, when the swap is closed. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss in the Statements of Operations. Net periodic payments received by a Fund are included as part of realized gain or loss in the Statements of Operations.
Interest Rate Swaps
In the normal course of pursuing their investment objectives, certain Funds may invest in interest rate swaps to manage interest rate risk or for purposes of hedging, duration management, as a substitute for securities, to increase returns, or to otherwise help achieve a Fund’s investment goals. Because certain Funds hold fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain the ability to generate income at prevailing market rates, certain Funds may enter into interest rate swap agreements. Interest rate swap agreements involve the exchange by a Fund with another party of their respective commitments to pay or receive interest with respect to the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”, (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”, (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the counterparty may terminate the swap transaction in whole at zero cost by a predetermined date and time prior to the maturity date, (v) spreadlocks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and a specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different money markets. A Fund investing in interest rate swaps is subject to the risk that there is no liquid market for these agreements, that the counterparties may default on their obligations to perform or disagree as to the meaning of the contractual terms in the agreements, or that there may be unfavorable changes in interest rates. A Fund’s maximum risk of loss from counterparty credit risk related to interest rate swaps is the discounted net value of the cash flows to be received from/paid to the counterparty over the contract’s remaining life, to the extent that the amount is positive. The risk may be mitigated to some extent if a master netting arrangement between a Fund and the counterparty is in place and to the extent a Fund obtains collateral to cover the Fund’s exposure to the counterparty.
Credit Default Swaps
In the normal course of pursuing their investment objectives, certain Funds may invest in credit default swaps to manage credit risk or for purposes of hedging, duration management, as a substitute for securities, to increase returns, or to otherwise help achieve a Fund’s investment goals. A Fund investing in credit default swaps is subject to the risk that there is no liquid market for these agreements, that the counterparties may default on their obligations to perform or disagree as to the meaning of the contractual terms in the agreements, or that there may be unfavorable changes in interest rates. Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event of a default or other credit event for the referenced entity, obligation or index. As a seller of protection, a Fund generally receives an upfront payment or a fixed rate of income throughout the term of the swap provided there is no credit event. As the seller, a Fund would effectively add leverage to its Fund because, in addition to its total net assets, a Fund would be subject to investment exposure on the notional amount of the swap.
If a Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, a Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If a Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, a Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are assumed by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value.
Credit default swap agreements on corporate issues or sovereign issues of an emerging country involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a default or other credit event. If a credit event occurs and cash settlement is not elected, a variety of other deliverable obligations may be delivered in lieu of the specific referenced
F-19
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
obligation. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event). A Fund may use credit default swaps on corporate issues or sovereign issues of an emerging country to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where a Fund owns or has exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood of a particular issuer’s default.
Credit default swap agreements on asset-backed securities involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a default or other credit event. Unlike credit default swaps on corporate and sovereign issues of an emerging country, deliverable obligations in most instances would be limited to the specific referenced obligation as performance for asset-backed securities can vary across deals. Prepayments, principal paydowns, and other writedown or loss events on the underlying mortgage loans will reduce the outstanding principal balance of the referenced obligation. These reductions may be temporary or permanent as defined under the terms of the swap agreement and the notional amount for the swap agreement will be adjusted by corresponding amounts. A Fund may use credit default swaps on asset-backed securities to provide a measure of protection against defaults of the referenced obligation or to take an active long or short position with respect to the likelihood of a particular referenced obligation’s default.
Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. Credit default swap on indices are benchmarks for protecting investors owning bonds against default. A credit index is a list of a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. A Fund may use credit default swaps on credit indices to hedge a Fund of credit default swaps or bonds with a credit default swap on indices which is less expensive than it would be to buy many credit default swap to achieve a similar effect.
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues or sovereign issues of an emerging country as of period end are disclosed in the Notes to Schedules of Investments and serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Wider credit spreads and increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.
A Fund may use pair trades of credit default swaps. Pair trades attempt to match a long position with a short position of two securities in the same market sector for hedging purposes. Pair trades of credit default swaps attempt to gain exposure to credit risk while hedging or offsetting the effects of overall market movements. For example, a Fund may purchase protection through a credit default swap referenced to the debt of an issuer, and simultaneously selling protection through a credit default swap referenced to the debt of a different issuer with the intent to realize gains from the pricing differences of the two issuers who are expected to have similar market risks.
A Fund may also use spread curve trades by simultaneously purchasing and selling protection through credit default swaps referenced to the same issuer but with different maturities. Spread curves attempt to gain exposure to credit risk on a forward basis by realizing gains on the expected differences in spreads.
A Fund’s maximum risk of loss from counterparty credit risk related to credit default swaps, either as the buyer or seller of protection, is the fair value of the contract. The risk may be mitigated to some extent if a master netting arrangement between a Fund and the counterparty is in place and to the extent a Fund obtains collateral to cover the Fund’s exposure to the counterparty.
The aggregate fair value of credit default swaps in a net liability position is reflected as unrealized depreciation and is disclosed in the Notes to Schedules of Investments. The collateral posted, net of assets received as collateral, for swap contracts is also disclosed in the Notes to Schedules of Investments. The maximum potential amount of future payments (undiscounted) that a Fund as a seller of protection could be required to make under a credit default swap agreement is an amount equal to the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of March 31, 2010 for which a Fund is the seller of protection are disclosed in the Notes to Schedules of Investments. These potential amounts are partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by a Fund for the same referenced entity or entities.
F-20
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
Total Return Swaps
In the normal course of pursuing their investment objectives, certain Funds may invest in total return swaps. A Fund investing in total return swaps is subject to the risk that there is no liquid market for these agreements, that the counterparties may default on their obligations to perform or disagree as to the meaning of the contractual terms in the agreements, or that there may be unfavorable changes in the value of the underlying index or reference instrument (generally caused by changes in interest rates or declines in credit quality). A total return swap agreement is one in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying index or reference instrument, which includes both the income it generates and any capital gains. To the extent the total return of the index or reference instrument underlying the transaction exceeds or falls short of the offsetting interest rate obligation, a Fund will receive a payment from or make a payment to the counterparty. A Fund’s maximum risk of loss from counterparty credit risk related to total return swaps is the discounted net value of the cash flows to be received from/paid to the counterparty over the contract’s remaining life, to the extent that the amount is positive. The risk may be mitigated to some extent if a master netting arrangement between a Fund and the counterparty is in place and to the extent a Fund obtains collateral to cover a Fund’s exposure to the counterparty.
The following is a summary of the location of derivative investments on the Trust’s Statements of Assets and Liabilities as of March 31, 2010:
Location on the Statements of Assets and Liabilities | ||||
Derivative Investments Type | Asset Derivative Investments | Liability Derivative Investments | ||
Interest rate contracts | Investments, at value Receivable: Variation margin Swap contracts, at value | Outstanding options written, at value Payable: Variation margin Swap contracts, at value | ||
Foreign exchange contracts | Investments, at value Receivable: Variation margin Forward foreign currency contracts appreciation | Outstanding options written, at value Payable: Variation margin Forward foreign currency contracts depreciation | ||
Credit contracts | Swap contracts, at value | Swap contracts, at value | ||
Equity contracts | Investments, at value Receivable: Variation margin | Outstanding options written, at value Payable: Variation margin |
The Trust does not use hedge accounting under ASC 815. Although a Fund’s investments in derivatives may represent economic hedges as part of its investment objectives, they are considered to be non-hedge transactions for purposes of ASC 815. The following is a summary of each Fund’s derivative investments not accounted for as hedging investments under ASC 815, categorized by primary risk exposure as of March 31, 2010:
Asset Derivative Investments Value | ||||||||||||||||||||
Interest | Foreign | |||||||||||||||||||
Total Value at | Equity | Rate | Credit | Exchange | ||||||||||||||||
Funds | March 31, 2010 | Contracts | Contracts | Contracts | Contracts | |||||||||||||||
PL International Value | $ | 6,616 | $ | 6,616 | * | $ | — | $ | — | $ | — | |||||||||
PL Short Duration Bond | 36,861 | — | 36,861 | * | — | — | ||||||||||||||
PL Growth LT | 141,543 | — | — | — | 141,543 | |||||||||||||||
PL Managed Bond | 3,787,068 | — | 3,193,907 | * | 377,867 | 215,294 | ||||||||||||||
PL Inflation Managed | 860,077 | — | 438,799 | * | 6,792 | 414,486 | ||||||||||||||
Liability Derivative Investments Value | ||||||||||||||||||||
Interest | Foreign | |||||||||||||||||||
Total Value at | Equity | Rate | Credit | Exchange | ||||||||||||||||
Funds | March 31, 2010 | Contracts | Contracts | Contracts | Contracts | |||||||||||||||
PL Short Duration Bond | $ | (19,927 | ) | $ | — | $ | (19,927 | )* | $ | — | $ | — | ||||||||
PL Growth LT | (20,978 | ) | — | — | — | (20,978 | ) | |||||||||||||
PL Managed Bond | (1,048,991 | ) | — | (919,122 | )* | (20,071 | ) | (109,798 | ) | |||||||||||
PL Inflation Managed | (265,325 | ) | — | (143,253 | )* | (1,333 | ) | (120,739 | ) |
* | Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedules of Investments and its notes. Only current day’s variation margin is reported within the Statement of Assets & Liabilities. |
The following is a summary of the location of derivative investments on the Trust’s Statements of Operations as of March 31, 2010:
Derivative Investments Type | Location of Gain (Loss) on Derivative Investments Recognized in the Statements of Operations | |
Interest rate contracts | Net realized gain (loss) on investment security transactions | |
Equity contracts | Net realized gain (loss) on futures contracts and swap transactions | |
Net realized gain (loss) on written option transactions | ||
Change in net unrealized appreciation (depreciation) on investment securities | ||
Change in net unrealized appreciation (depreciation) on futures contracts and swaps | ||
Change in net unrealized appreciation (depreciation) on written options | ||
Foreign exchange contracts | Net realized gain (loss) on investment security transactions | |
Net realized gain (loss) on futures contracts and swap transactions | ||
Net realized gain (loss) on written option transactions | ||
Net realized gain (loss) on foreign currency transactions | ||
Change in net unrealized appreciation (depreciation) on investment securities |
F-21
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
Derivative Investments Type | Location of Gain (Loss) on Derivative Investments Recognized in the Statements of Operations | |
Foreign exchange contracts | Change in net unrealized appreciation (depreciation) on futures contracts and swaps | |
(continued) | Change in net unrealized appreciation (depreciation) on written options | |
Change in net unrealized appreciation (depreciation) on foreign currencies | ||
Credit contracts | Net realized gain (loss) on futures contracts and swap transactions | |
Change in net unrealized appreciation (depreciation) on futures contracts and swaps |
The following is a summary of each Fund’s realized gain or loss and change in unrealized appreciation or depreciation on derivative investments recognized in the Statements of Operations categorized by primary risk exposure as of March 31, 2010:
Realized Gain (Loss) on Derivative Investments Recognized in the Statements of Operations | ||||||||||||||||||||
Interest | Foreign | |||||||||||||||||||
Equity | Rate | Credit | Exchange | |||||||||||||||||
Funds | Total | Contracts | Contracts | Contracts | Contracts | |||||||||||||||
PL International Value | $ | (386,840 | ) | $ | 208,852 | $ | — | $ | — | $ | (595,692 | ) | ||||||||
PL Short Duration Bond | 376,114 | — | 376,114 | — | — | |||||||||||||||
PL Growth LT | (343,701 | ) | 3,362 | — | — | (347,063 | ) | |||||||||||||
PL Managed Bond | 7,979,212 | — | 7,280,788 | 233,401 | 465,023 | |||||||||||||||
PL Inflation Managed | 555,114 | — | 1,168,888 | (272,417 | ) | (341,357 | ) | |||||||||||||
Change in Unrealized Appreciation (Depreciation) on | ||||||||||||||||||||
Derivative Investments Recognized in the Statements of Operations | ||||||||||||||||||||
Interest | Foreign | |||||||||||||||||||
Equity | Rate | Credit | Exchange | |||||||||||||||||
Funds | Total | Contracts | Contracts | Contracts | Contracts | |||||||||||||||
PL International Value | $ | 100,888 | $ | (4,451 | ) | $ | — | $ | — | $ | 105,339 | |||||||||
PL Short Duration Bond | (23,261 | ) | — | (23,261 | ) | — | — | |||||||||||||
PL Growth LT | 269,508 | — | — | — | 269,508 | |||||||||||||||
PL Managed Bond | (2,773,451 | ) | — | (4,104,152 | ) | 992,415 | 338,286 | |||||||||||||
PL Inflation Managed | 1,623,506 | — | 99,400 | 864,869 | 659,237 |
For the year ended March 31, 2010, the average* volume of derivative activities are as follows:
Futures | Forward Foreign | |||||||||||||||||||
Futures | Contracts - Short | Currency | ||||||||||||||||||
Written | Contracts - Long | Positions | Purchase Contracts | |||||||||||||||||
Purchased | Options | Positions | (Unrealized | (Unrealized | ||||||||||||||||
Options | (Premiums | (Unrealized | Appreciation | Appreciation | ||||||||||||||||
Funds | (Cost) | Received) | Appreciation) | (Depreciation)) | (Depreciation)) | |||||||||||||||
PL International Value | $ | — | $ | — | $ | 9,740 | $ | — | $ | (166 | ) | |||||||||
PL Short Duration Bond | — | — | 24,270 | (6,091 | ) | — | ||||||||||||||
PL Growth LT | — | 458 | — | — | 3,096 | |||||||||||||||
PL Managed Bond | 108,241 | 363,239 | 456,588 | 25 | (12,850 | ) | ||||||||||||||
PL Inflation Managed | 2,396 | 235,359 | 236,955 | — | (21,855 | ) |
Forward | ||||||||||||||||
Foreign | Credit Default | Credit Default | ||||||||||||||
Currency Sale | Interest Rate | Swap | Swap | |||||||||||||
Contracts | Swap | Agreements - | Agreements - | |||||||||||||
(Unrealized | Agreements** | Buy Protection | Sell Protection | |||||||||||||
Appreciation | (Notional | (Notional | (Notional | |||||||||||||
Funds | (Depreciation)) | Amount) | Amount) | Amount) | ||||||||||||
PL International Value | $ | (20,902 | ) | $ | — | $ | — | $ | — | |||||||
PL Growth LT | (5,376 | ) | — | — | — | |||||||||||
PL Managed Bond | 70,161 | 104,826,321 | 1,257,600 | 6,860,731 | ||||||||||||
PL Inflation Managed | 9,643 | 13,473,739 | 2,138,560 | 1,820,000 |
* | Based on quarterly holdings. | |
** | Notional amounts were translated into U.S. dollars. |
12. SHARES OF BENEFICIAL INTEREST
Each Fund is authorized to issue an unlimited number of shares of beneficial interest with no par value. Changes in shares of beneficial interest of each Fund were as follows:
PL Portfolio Optimization | PL Portfolio Optimization | PL Portfolio Optimization | PL Portfolio Optimization | |||||||||||||||||||||||||||||
Conservative Fund | Moderate-Conservative Fund | Moderate Fund | Moderate-Aggressive Fund | |||||||||||||||||||||||||||||
Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | |||||||||||||||||||||||||
3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Shares sold | 5,095,105 | 2,956,336 | 4,079,611 | 2,130,505 | 9,322,499 | 5,467,124 | 6,825,323 | 5,206,917 | ||||||||||||||||||||||||
Dividends and distributions reinvested | 154,810 | 179,587 | 151,488 | 247,855 | 395,409 | 842,154 | 265,252 | 780,751 | ||||||||||||||||||||||||
Shares repurchased | (2,343,715 | ) | (1,696,454 | ) | (1,540,865 | ) | (2,251,664 | ) | (4,091,285 | ) | (5,820,224 | ) | (3,652,598 | ) | (5,568,491 | ) | ||||||||||||||||
Net increase | 2,906,200 | 1,439,469 | 2,690,234 | 126,696 | 5,626,623 | 489,054 | 3,437,977 | 419,177 | ||||||||||||||||||||||||
Beginning shares outstanding | 3,714,100 | 2,274,631 | 4,724,271 | 4,597,575 | 17,232,090 | 16,743,036 | 17,642,149 | 17,222,972 | ||||||||||||||||||||||||
Ending shares outstanding | 6,620,300 | 3,714,100 | 7,414,505 | 4,724,271 | 22,858,713 | 17,232,090 | 21,080,126 | 17,642,149 | ||||||||||||||||||||||||
F-22
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
PL Portfolio Optimization | PL Portfolio Optimization | PL Portfolio Optimization | PL Portfolio Optimization | |||||||||||||||||||||||||||||
Conservative Fund | Moderate-Conservative Fund | Moderate Fund | Moderate-Aggressive Fund | |||||||||||||||||||||||||||||
Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | |||||||||||||||||||||||||
3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | |||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||
Shares sold | 585,682 | 714,350 | 682,096 | 509,964 | 1,643,306 | 1,312,742 | 1,225,743 | 1,289,865 | ||||||||||||||||||||||||
Dividends and distributions reinvested | 27,986 | 41,713 | 32,703 | 69,813 | 83,625 | 211,875 | 49,996 | 218,841 | ||||||||||||||||||||||||
Shares repurchased | (270,707 | ) | (275,210 | ) | (319,317 | ) | (526,525 | ) | (793,232 | ) | (1,304,938 | ) | (823,019 | ) | (1,288,485 | ) | ||||||||||||||||
Net increase | 342,961 | 480,853 | 395,482 | 53,252 | 933,699 | 219,679 | 452,720 | 220,221 | ||||||||||||||||||||||||
Beginning shares outstanding | 947,316 | 466,463 | 1,438,612 | 1,385,360 | 5,148,493 | 4,928,814 | 6,049,066 | 5,828,845 | ||||||||||||||||||||||||
Ending shares outstanding | 1,290,277 | 947,316 | 1,834,094 | 1,438,612 | 6,082,192 | 5,148,493 | 6,501,786 | 6,049,066 | ||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
Shares sold | 4,616,051 | 3,275,571 | 2,637,348 | 2,281,299 | 7,600,515 | 5,115,416 | 4,735,118 | 4,470,139 | ||||||||||||||||||||||||
Dividends and distributions reinvested | 134,198 | 191,300 | 107,346 | 234,491 | 250,879 | 663,823 | 132,149 | 602,849 | ||||||||||||||||||||||||
Shares repurchased | (2,499,753 | ) | (1,633,608 | ) | (1,423,572 | ) | (2,045,402 | ) | (3,815,913 | ) | (5,949,843 | ) | (3,234,418 | ) | (4,527,360 | ) | ||||||||||||||||
Net increase (decrease) | 2,250,496 | 1,833,263 | 1,321,122 | 470,388 | 4,035,481 | (170,604 | ) | 1,632,849 | 545,628 | |||||||||||||||||||||||
Beginning shares outstanding | 4,296,832 | 2,463,569 | 4,896,743 | 4,426,355 | 15,622,953 | 15,793,557 | 16,371,437 | 15,825,809 | ||||||||||||||||||||||||
Ending shares outstanding | 6,547,328 | 4,296,832 | 6,217,865 | 4,896,743 | 19,658,434 | 15,622,953 | 18,004,286 | 16,371,437 | ||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||
Shares sold | 573,385 | 287,632 | 666,896 | 446,824 | 1,380,156 | 1,150,700 | 1,099,903 | 511,373 | ||||||||||||||||||||||||
Dividends and distributions reinvested | 20,183 | 15,951 | 22,829 | 21,818 | 41,583 | 52,854 | 15,130 | 19,890 | ||||||||||||||||||||||||
Shares repurchased | (188,408 | ) | (95,180 | ) | (287,268 | ) | (151,527 | ) | (727,441 | ) | (324,413 | ) | (697,823 | ) | (71,380 | ) | ||||||||||||||||
Net increase | 405,160 | 208,403 | 402,457 | 317,115 | 694,298 | 879,141 | 417,210 | 459,883 | ||||||||||||||||||||||||
Beginning shares outstanding | 363,056 | 154,653 | 594,101 | 276,986 | 1,554,640 | 675,499 | 726,847 | 266,964 | ||||||||||||||||||||||||
Ending shares outstanding | 768,216 | 363,056 | 996,558 | 594,101 | 2,248,938 | 1,554,640 | 1,144,057 | 726,847 | ||||||||||||||||||||||||
PL Portfolio Optimization | PL Money | PL Small-Cap | PL International | |||||||||||||||||||||||||||||
Aggressive Fund | Market Fund | Growth Fund (1) | Value Fund (1) | |||||||||||||||||||||||||||||
Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | |||||||||||||||||||||||||
3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Shares sold | 2,980,430 | 2,935,895 | 52,775,972 | 95,268,593 | 501,380 | 733,225 | 2,094,735 | 3,626,631 | ||||||||||||||||||||||||
Dividends and distributions reinvested | 97,909 | 230,475 | 9,957 | 507,236 | — | — | 153,540 | 335,641 | ||||||||||||||||||||||||
Shares repurchased | (2,484,648 | ) | (2,494,595 | ) | (73,530,933 | ) | (82,989,302 | ) | (1,862,567 | ) | (789,525 | ) | (5,667,580 | ) | (929,360 | ) | ||||||||||||||||
Converted from Class B and C shares | — | — | — | — | — | 64,795 | — | 104,545 | ||||||||||||||||||||||||
Net increase (decrease) | 593,691 | 671,775 | (20,745,004 | ) | 12,786,527 | (1,361,187 | ) | 8,495 | (3,419,305 | ) | 3,137,457 | |||||||||||||||||||||
Beginning shares outstanding | 8,665,072 | 7,993,297 | 55,424,733 | 42,638,206 | 4,092,176 | 4,083,681 | 12,810,606 | 9,673,149 | ||||||||||||||||||||||||
Ending shares outstanding | 9,258,763 | 8,665,072 | 34,679,729 | 55,424,733 | 2,730,989 | 4,092,176 | 9,391,301 | 12,810,606 | ||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||
Shares sold | 487,134 | 538,821 | 103 | 979 | ||||||||||||||||||||||||||||
Dividends and distributions reinvested | 8,236 | 72,540 | — | — | ||||||||||||||||||||||||||||
Shares repurchased | (429,310 | ) | (448,088 | ) | (889 | ) | (1,725 | ) | ||||||||||||||||||||||||
Converted to Class A shares | — | — | (40,580 | ) | (41,781 | ) | ||||||||||||||||||||||||||
Net increase (decrease) | 66,060 | 163,273 | (41,366 | ) | (42,527 | ) | ||||||||||||||||||||||||||
Beginning shares outstanding | 2,683,913 | 2,520,640 | 41,366 | 42,527 | ||||||||||||||||||||||||||||
Ending shares outstanding | 2,749,973 | 2,683,913 | — | — | ||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
Shares sold | 2,128,529 | 2,202,758 | 54 | 145 | ||||||||||||||||||||||||||||
Dividends and distributions reinvested | 18,127 | 179,396 | — | — | ||||||||||||||||||||||||||||
Shares repurchased | (2,117,305 | ) | (2,217,009 | ) | (6,381 | ) | (10,054 | ) | ||||||||||||||||||||||||
Converted to Class A shares | — | — | (27,088 | ) | (65,319 | ) | ||||||||||||||||||||||||||
Net increase (decrease) | 29,351 | 165,145 | (33,415 | ) | (75,228 | ) | ||||||||||||||||||||||||||
Beginning shares outstanding | 6,491,418 | 6,326,273 | 33,415 | 75,228 | ||||||||||||||||||||||||||||
Ending shares outstanding | 6,520,769 | 6,491,418 | — | — | ||||||||||||||||||||||||||||
(1) | Class B and Class C shares were converted to Class A shares on June 23, 2008 (see Note 1 to Financial Statements). |
F-23
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTES TO FINANCIAL STATEMENTS (Continued)
PL Portfolio Optimization | PL Money | PL Small-Cap | PL International | |||||||||||||||||||||||||||||
Aggressive Fund | Market Fund | Growth Fund (1) | Value Fund (1) | |||||||||||||||||||||||||||||
Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | |||||||||||||||||||||||||
3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | |||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||
Shares sold | 389,684 | 254,938 | ||||||||||||||||||||||||||||||
Dividends and distributions reinvested | 4,954 | 4,130 | ||||||||||||||||||||||||||||||
Shares repurchased | (281,783 | ) | (55,583 | ) | ||||||||||||||||||||||||||||
Net increase | 112,855 | 203,485 | ||||||||||||||||||||||||||||||
Beginning shares outstanding | 306,266 | 102,781 | ||||||||||||||||||||||||||||||
Ending shares outstanding | 419,121 | 306,266 | ||||||||||||||||||||||||||||||
PL Large-Cap | PL Short Duration | PL Floating Rate | PL Growth | |||||||||||||||||||||||||||||
Value Fund (1) | Bond Fund (1) | Loan Fund (2) | LT Fund (1) | |||||||||||||||||||||||||||||
Year ended | Year ended | Year ended | Year ended | Year ended | Period ended | Year ended | Year ended | |||||||||||||||||||||||||
3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Shares sold | 7,070,227 | 2,978,769 | 3,533,144 | 969,287 | 2,282,633 | 3,928,223 | 1,279,195 | 3,666,221 | ||||||||||||||||||||||||
Dividends and distributions reinvested | 179,933 | 122,830 | 120,785 | 410,568 | 210,756 | 168,607 | 161,723 | 154,494 | ||||||||||||||||||||||||
Shares repurchased | (242,469 | ) | (597,981 | ) | (973,595 | ) | (4,684,155 | ) | (515,930 | ) | (696,479 | ) | (3,057,754 | ) | (413,180 | ) | ||||||||||||||||
Converted from Class B and C shares | — | 114,264 | — | 6,864 | — | — | — | 56,444 | ||||||||||||||||||||||||
Net increase (decrease) | 7,007,691 | 2,617,882 | 2,680,334 | (3,297,436 | ) | 1,977,459 | 3,400,351 | (1,616,836 | ) | 3,463,979 | ||||||||||||||||||||||
Beginning shares outstanding | 8,562,638 | 5,944,756 | 4,889,196 | 8,186,632 | 3,400,351 | — | 9,576,941 | 6,112,962 | ||||||||||||||||||||||||
Ending shares outstanding | 15,570,329 | 8,562,638 | 7,569,530 | 4,889,196 | 5,377,810 | 3,400,351 | 7,960,105 | 9,576,941 | ||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||
Shares sold | 76 | — | 74 | |||||||||||||||||||||||||||||
Dividends and distributions reinvested | — | 17 | — | |||||||||||||||||||||||||||||
Shares repurchased | (6,307 | ) | — | (296 | ) | |||||||||||||||||||||||||||
Converted to Class A shares | (43,188 | ) | (3,936 | ) | (32,171 | ) | ||||||||||||||||||||||||||
Net decrease | (49,419 | ) | (3,919 | ) | (32,393 | ) | ||||||||||||||||||||||||||
Beginning shares outstanding | 49,419 | 3,919 | 32,393 | |||||||||||||||||||||||||||||
Ending shares outstanding | — | — | — | |||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
Shares sold | 412 | 199 | 155 | |||||||||||||||||||||||||||||
Dividends and distributions reinvested | — | 15 | — | |||||||||||||||||||||||||||||
Shares repurchased | (16,754 | ) | (1,649 | ) | (2,549 | ) | ||||||||||||||||||||||||||
Converted to Class A shares | (73,662 | ) | (2,932 | ) | (26,175 | ) | ||||||||||||||||||||||||||
Net decrease | (90,004 | ) | (4,367 | ) | (28,569 | ) | ||||||||||||||||||||||||||
Beginning shares outstanding | 90,004 | 4,367 | 28,569 | |||||||||||||||||||||||||||||
Ending shares outstanding | — | — | — | |||||||||||||||||||||||||||||
PL Mid-Cap | PL International | PL Small-Cap | PL Main Street | |||||||||||||||||||||||||||||
Equity Fund (1), (3) | Large-Cap Fund (1) | Value Fund | Core Fund | |||||||||||||||||||||||||||||
Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | |||||||||||||||||||||||||
3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Shares sold | 1,214,393 | 2,317,738 | 1,665,396 | 1,329,243 | 681,735 | 3,021,440 | 3,174,195 | 2,854,315 | ||||||||||||||||||||||||
Dividends and distributions reinvested | 56,832 | 142,979 | 86,240 | 88,594 | 63,819 | 87,024 | 127,649 | 146,772 | ||||||||||||||||||||||||
Shares repurchased | (631,044 | ) | (941,323 | ) | (1,045,692 | ) | (564,633 | ) | (1,213,361 | ) | (360,058 | ) | (1,035,627 | ) | (345,795 | ) | ||||||||||||||||
Converted from Class B and C shares | — | 22,991 | — | 73,362 | — | — | — | — | ||||||||||||||||||||||||
Net increase (decrease) | 640,181 | 1,542,385 | 705,944 | 926,566 | (467,807 | ) | 2,748,406 | 2,266,217 | 2,655,292 | |||||||||||||||||||||||
Beginning shares outstanding | 11,097,753 | 9,555,368 | 7,104,006 | 6,177,440 | 4,921,406 | 2,173,000 | 13,956,149 | 11,300,857 | ||||||||||||||||||||||||
Ending shares outstanding | 11,737,934 | 11,097,753 | �� | 7,809,950 | 7,104,006 | 4,453,599 | 4,921,406 | 16,222,366 | 13,956,149 | |||||||||||||||||||||||
(1) | Class B and Class C shares were converted to Class A shares on June 23, 2008 (see Note 1 to Financial Statements). | |
(2) | Operations commenced on June 30, 2008. | |
(3) | Formerly named Mid-Cap Value Fund. |
F-24
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTES TO FINANCIAL STATEMENTS (Continued)
PL Mid-Cap | PL International | PL Small-Cap | PL Main Street | |||||||||||||||||||||||||||||
Equity Fund (1), (2) | Large-Cap Fund (1) | Value Fund | Core Fund | |||||||||||||||||||||||||||||
Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | |||||||||||||||||||||||||
3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | |||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||
Shares sold | 127 | 1,100 | ||||||||||||||||||||||||||||||
Dividends and distributions reinvested | — | — | ||||||||||||||||||||||||||||||
Shares repurchased | (3 | ) | (38 | ) | ||||||||||||||||||||||||||||
Converted to Class A shares | (6,709 | ) | (41,192 | ) | ||||||||||||||||||||||||||||
Net decrease | (6,585 | ) | (40,130 | ) | ||||||||||||||||||||||||||||
Beginning shares outstanding | 6,585 | 40,130 | ||||||||||||||||||||||||||||||
Ending shares outstanding | — | — | ||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
Shares sold | 7 | 362 | ||||||||||||||||||||||||||||||
Dividends and distributions reinvested | — | — | ||||||||||||||||||||||||||||||
Shares repurchased | (1,264 | ) | (5,143 | ) | ||||||||||||||||||||||||||||
Converted to Class A shares | (16,768 | ) | (34,177 | ) | ||||||||||||||||||||||||||||
Net decrease | (18,025 | ) | (38,958 | ) | ||||||||||||||||||||||||||||
Beginning shares outstanding | 18,025 | 38,958 | ||||||||||||||||||||||||||||||
Ending shares outstanding | — | — | ||||||||||||||||||||||||||||||
PL Emerging | PL Managed | PL Inflation | PL Large-Cap | |||||||||||||||||||||||||||||
Markets Fund | Bond Fund (1) | Managed Fund (1) | Growth Fund (1) | |||||||||||||||||||||||||||||
Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | |||||||||||||||||||||||||
3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Shares sold | 543,076 | 839,755 | 7,234,283 | 2,711,679 | 6,378,988 | 1,160,750 | 5,211,526 | 478,562 | ||||||||||||||||||||||||
Dividends and distributions reinvested | 20,636 | 729,647 | 1,283,200 | 1,712,608 | 462,500 | 1,208,287 | — | — | ||||||||||||||||||||||||
Shares repurchased | (1,365,816 | ) | (360,976 | ) | (765,659 | ) | (6,865,813 | ) | (518,710 | ) | (5,191,750 | ) | (323,434 | ) | (384,057 | ) | ||||||||||||||||
Converted from Class B and C shares | — | — | — | 249,828 | — | 258,126 | — | 99,602 | ||||||||||||||||||||||||
Net increase (decrease) | (802,104 | ) | 1,208,426 | 7,751,824 | (2,191,698 | ) | 6,322,778 | (2,564,587 | ) | 4,888,092 | 194,107 | |||||||||||||||||||||
Beginning shares outstanding | 4,715,552 | 3,507,126 | 14,194,208 | 16,385,906 | 8,477,918 | 11,042,505 | 3,033,678 | 2,839,571 | ||||||||||||||||||||||||
Ending shares outstanding | 3,913,448 | 4,715,552 | 21,946,032 | 14,194,208 | 14,800,696 | 8,477,918 | 7,921,770 | 3,033,678 | ||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||
Shares sold | 983 | 24 | 177 | |||||||||||||||||||||||||||||
Dividends and distributions reinvested | 326 | 150 | — | |||||||||||||||||||||||||||||
Shares repurchased | (809 | ) | (11,675 | ) | (949 | ) | ||||||||||||||||||||||||||
Converted to Class A shares | (79,742 | ) | (67,109 | ) | (42,959 | ) | ||||||||||||||||||||||||||
Net decrease | (79,242 | ) | (78,610 | ) | (43,731 | ) | ||||||||||||||||||||||||||
Beginning shares outstanding | 79,242 | 78,610 | 43,731 | |||||||||||||||||||||||||||||
Ending shares outstanding | — | — | — | |||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
Shares sold | 211 | 97 | 135 | |||||||||||||||||||||||||||||
Dividends and distributions reinvested | 760 | 400 | — | |||||||||||||||||||||||||||||
Shares repurchased | (30,109 | ) | (7,459 | ) | (9,953 | ) | ||||||||||||||||||||||||||
Converted to Class A shares | (170,523 | ) | (192,804 | ) | (60,722 | ) | ||||||||||||||||||||||||||
Net decrease | (199,661 | ) | (199,766 | ) | (70,540 | ) | ||||||||||||||||||||||||||
Beginning shares outstanding | 199,661 | 199,766 | 70,540 | |||||||||||||||||||||||||||||
Ending shares outstanding | — | — | — | |||||||||||||||||||||||||||||
(1) | Class B and Class C shares were converted to Class A shares on June 23, 2008 (see Note 1 to Financial Statements). | |
(2) | Formerly named Mid-Cap Value Fund. |
F-25
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTES TO FINANCIAL STATEMENTS (Continued)
PL Comstock | PL Mid-Cap | PL Real Estate | ||||||||||||||||||||||
Fund (1) | Growth Fund (1) | Fund (1) | ||||||||||||||||||||||
Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | |||||||||||||||||||
3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | 3/31/2010 | 3/31/2009 | |||||||||||||||||||
Class A | ||||||||||||||||||||||||
Shares sold | 1,887,392 | 2,391,446 | 3,175,797 | 658,172 | 865,460 | 1,621,236 | ||||||||||||||||||
Dividends and distributions reinvested | 111,723 | 208,713 | 76,838 | 465,751 | 63,259 | 96,968 | ||||||||||||||||||
Shares repurchased | (787,611 | ) | (2,416,252 | ) | (507,051 | ) | (2,919,074 | ) | (1,515,147 | ) | (593,678 | ) | ||||||||||||
Converted from Class B and C shares | — | 93,595 | — | 196,520 | — | 27,603 | ||||||||||||||||||
Net increase (decrease) | 1,211,504 | 277,502 | 2,745,584 | (1,598,631 | ) | (586,428 | ) | 1,152,129 | ||||||||||||||||
Beginning shares outstanding | 10,774,936 | 10,497,434 | 3,793,181 | 5,391,812 | 4,519,366 | 3,367,237 | ||||||||||||||||||
Ending shares outstanding | 11,986,440 | 10,774,936 | 6,538,765 | 3,793,181 | 3,932,938 | 4,519,366 | ||||||||||||||||||
Class B | ||||||||||||||||||||||||
Shares sold | 110 | 588 | 110 | |||||||||||||||||||||
Dividends and distributions reinvested | — | — | — | |||||||||||||||||||||
Shares repurchased | (2,548 | ) | (4,082 | ) | (40 | ) | ||||||||||||||||||
Converted to Class A shares | (42,186 | ) | (109,815 | ) | (8,683 | ) | ||||||||||||||||||
Net decrease | (44,624 | ) | (113,309 | ) | (8,613 | ) | ||||||||||||||||||
Beginning shares outstanding | 44,624 | 113,309 | 8,613 | |||||||||||||||||||||
Ending shares outstanding | — | — | — | |||||||||||||||||||||
Class C | ||||||||||||||||||||||||
Shares sold | 477 | 704 | 192 | |||||||||||||||||||||
Dividends and distributions reinvested | — | 1 | — | |||||||||||||||||||||
Shares repurchased | (11,256 | ) | (20,134 | ) | (577 | ) | ||||||||||||||||||
Converted to Class A shares | (53,116 | ) | (95,571 | ) | (19,183 | ) | ||||||||||||||||||
Net decrease | (63,895 | ) | (115,000 | ) | (19,568 | ) | ||||||||||||||||||
Beginning shares outstanding | 63,895 | 115,000 | 19,568 | |||||||||||||||||||||
Ending shares outstanding | — | — | — | |||||||||||||||||||||
(1) | Class B and Class C shares were converted to Class A shares on June 23, 2008 (see Note 1 to Financial Statements). |
13. INDEMNIFICATIONS
Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of performance of their duties to the Trust. In addition, the Trust entered into an agreement with each of the trustees which provides that the Trust will indemnify and hold harmless each trustee against any expenses actually and reasonably incurred by any trustee in any proceeding arising out of or in connection with the trustee’s services to the Trust, to the fullest extent permitted by the Trust’s Declaration of Trust and By-Laws, the general trust law of the State of Delaware, the Securities Act of 1933, and the 1940 Act, each as now or hereinafter in force. In the normal course of business, the Trust enters into contracts with service providers and others that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements and agreements is dependent on future claims that may be made against the Trust and/or the trustees and, therefore, cannot be estimated; however, based on experience, the risk of loss from such claims is considered remote.
14. U.S. TREASURY’S TEMPORARY MONEY MARKET FUND GUARANTEE PROGRAM
The PL Money Market Fund participated in the voluntary, temporary money market guarantee program (the “Program”) offered by the U.S. Department of the Treasury (the “Treasury”). The Program which had an initial three-month term beginning September 19, 2008 was extended through April 30, 2009, and was extended a second time through September 18, 2009. The Program expired on September 18, 2009. The Fund did not need to utilize the coverage available under the Program.
Participation in each term of the Program required a payment to the Treasury ranging from 0.01% to 0.015% of the net asset value of the PL Money Market Fund as of September 19, 2008. While this would normally be an expense borne by the PL Money Market Fund, PLFA, as investment adviser to the Trust, reimbursed the PL Money Market Fund for the expenses of participating in the Program.
The Program’s guarantee applied to shareholders of the PL Money Market Fund as of the close of business on September 19, 2008 (“Eligible Shareholders”). The Program covered the lesser of the number of shares owned by an Eligible Shareholder (i) on September 19, 2008 or (ii) on the date the PL Money Market Fund’s market-based net asset value per share falls below $0.995. Investors who became shareholders after September 19, 2008 were not covered under the Program.
15. RECLASSIFICATION OF ACCOUNTS
During the year ended March 31, 2010, reclassifications as shown in the following table, have been made in each Fund’s capital accounts to report these balances on a tax basis, excluding certain temporary differences, as of March 31, 2010. Additional adjustments may be required in subsequent reporting periods. These reclassifications, which have no impact on the NAV of the Funds, are primarily attributable to
F-26
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
reclassifications of foreign currency transactions, non-deductible expenses, treatment of net operating losses, use of tax equalization, and certain differences in the computation of distributable income and capital gains under Federal tax rules versus U.S. GAAP. The calculation of net investment income per share in the financial highlights excludes these adjustments.
Undistributed/ | Undistributed/ | |||||||||||
Accumulated | Accumulated | |||||||||||
Paid-In | Net Investment | Net Realized | ||||||||||
Funds | Capital | Income (Loss) | Gain (Loss) | |||||||||
PL Portfolio Optimization Conservative | $ | — | $ | 781,304 | $ | (781,304 | ) | |||||
PL Portfolio Optimization Moderate-Conservative | — | 646,152 | (646,152 | ) | ||||||||
PL Portfolio Optimization Moderate | — | 1,302,664 | (1,302,664 | ) | ||||||||
PL Portfolio Optimization Moderate-Aggressive | — | 620,613 | (620,613 | ) | ||||||||
PL Portfolio Optimization Aggressive | — | 155,811 | (155,811 | ) | ||||||||
PL Money Market | 3,458 | (3,405 | ) | (53 | ) | |||||||
PL Small-Cap Growth | (193,658 | ) | 194,015 | (357 | ) | |||||||
PL International Value | — | (572,634 | ) | 572,634 | ||||||||
PL Large-Cap Value | — | 2,121 | (2,121 | ) | ||||||||
PL Short Duration Bond | — | 82,920 | (82,920 | ) | ||||||||
PL Growth LT | (72,795 | ) | (272,924 | ) | 345,719 | |||||||
PL International Large-Cap | — | 13,603 | (13,603 | ) | ||||||||
PL Small-Cap Value | 115,477 | (114,217 | ) | (1,260 | ) | |||||||
PL Main Street Core | — | (202,647 | ) | 202,647 | ||||||||
PL Emerging Markets | (36,218 | ) | 16,638 | 19,580 | ||||||||
PL Managed Bond | — | 3,186,597 | (3,186,597 | ) | ||||||||
PL Inflation Managed | — | 251,967 | (251,967 | ) | ||||||||
PL Large-Cap Growth | (171,495 | ) | 171,495 | — | ||||||||
PL Mid-Cap Growth | — | 179,170 | (179,170 | ) | ||||||||
PL Real Estate | (3,650 | ) | (3,304 | ) | 6,954 |
16. OTHER TAX INFORMATION (Unaudited)
For corporate shareholders, the percentage of investment income (dividend income and short-term gains, if any) for each of the Funds that qualify for the dividends-received deductions for the year ended March 31, 2010 is as follows:
Funds | Percentage | |||
PL Portfolio Optimization Conservative | 10.66 | % | ||
PL Portfolio Optimization Moderate-Conservative | 10.69 | % | ||
PL Portfolio Optimization Moderate | 19.35 | % | ||
PL Portfolio Optimization Moderate-Aggressive | 49.83 | % | ||
PL Portfolio Optimization Aggressive | 92.91 | % | ||
PL Large-Cap Value | 100.00 | % | ||
PL Growth LT | 48.21 | % | ||
PL Mid-Cap Equity | 100.00 | % | ||
PL Small-Cap Value | 100.00 | % | ||
PL Main Street Core | 100.00 | % | ||
PL Managed Bond | 1.86 | % | ||
PL Inflation Managed | 0.14 | % | ||
PL Comstock | 100.00 | % | ||
PL Mid-Cap Growth | 33.49 | % | ||
PL Real Estate | 2.15 | % |
For the year ended March 31, 2010, certain dividends paid by the Funds may be subject to a maximum tax rate of 15%, as provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003. Of the distributions made by the following Funds, the corresponding percentages represent the amount of each distribution which may qualify for the 15% dividend income tax rate.
Funds | Percentage | |||
PL Portfolio Optimization Conservative | 13.66 | % | ||
PL Portfolio Optimization Moderate-Conservative | 15.69 | % | ||
PL Portfolio Optimization Moderate | 29.35 | % | ||
PL Portfolio Optimization Moderate-Aggressive | 62.07 | % | ||
PL Portfolio Optimization Aggressive | 100.00 | % | ||
PL International Value | 100.00 | % | ||
PL Large-Cap Value | 100.00 | % | ||
PL Growth LT | 77.71 | % | ||
PL Mid-Cap Equity | 100.00 | % | ||
PL International Large-Cap | 100.00 | % |
F-27
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
Funds | Percentage | |||
PL Small-Cap Value | 100.00 | % | ||
PL Main Street Core | 100.00 | % | ||
PL Emerging Markets | 100.00 | % | ||
PL Managed Bond | 1.85 | % | ||
PL Inflation Managed | 0.14 | % | ||
PL Comstock | 100.00 | % | ||
PL Mid-Cap Growth | 41.03 | % | ||
PL Real Estate | 4.74 | % |
Shareholders should not use the above tax information to prepare their tax returns. The information will be included with your Form 1099 DIV which will be sent to you separately in January 2011.
The following Funds designated the listed amounts as long-term capital gain dividends during the year ended March 31, 2010. Distributable long-term gains are based on net realized long-term gains determined on a tax basis and may differ from such amounts for financial reporting purposes.
Funds | Amount | |||
PL Money Market | $ | 173 | ||
PL Managed Bond | 2,173,757 | |||
PL Mid-Cap Growth | 483,917 |
17. SUBSEQUENT EVENT
Events or transactions occurring subsequent to March 31, 2010 through the date the financial statements were issued, have been evaluated by management in the preparation of the financial statements and no items were noted requiring additional disclosure. Management has not evaluated events after that date for presentation in these financial statements.
F-28
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To The Board of Trustees and Shareholders of
Pacific Life Funds
Pacific Life Funds
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Pacific Life Funds, comprising the PL Portfolio Optimization Conservative Fund, PL Portfolio Optimization Moderate-Conservative Fund, PL Portfolio Optimization Moderate Fund, PL Portfolio Optimization Moderate-Aggressive Fund, and PL Portfolio Optimization Aggressive Fund (collectively the “Portfolio Optimization Funds”), and the PL Money Market Fund, PL Small-Cap Growth Fund, PL International Value Fund, PL Large-Cap Value Fund, PL Short Duration Bond Fund, PL Floating Rate Loan Fund, PL Growth LT Fund, PL Mid-Cap Equity Fund, PL International Large-Cap Fund, PL Small-Cap Value Fund, PL Main Street® Core Fund, PL Emerging Markets Fund, PL Managed Bond Fund, PL Inflation Managed Fund, PL Large-Cap Growth Fund, PL Comstock Fund, PL Mid-Cap Growth Fund and PL Real Estate Fund (collectively the “Funds”), as of March 31, 2010, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended (as to the PL Floating Rate Loan Fund, for the year ended March 31, 2010 and for the period from June 30, 2008 (commencement of operations) through March 31, 2009), the statement of cash flows for the PL Floating Rate Loan Fund for the year then ended and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Pacific Life Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Pacific Life Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Pacific Life Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of March 31, 2010, by correspondence with the custodian, transfer agent and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the Portfolio Optimization Funds and the Funds constituting the Pacific Life Funds as of March 31, 2010, the results of their operations, the changes in their net assets, the cash flows for the PL Floating Rate Loan Fund, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.
Deloitte & Touche LLP
Philadelphia, Pennsylvania
May 27, 2010
May 27, 2010
F-29
[THIS PAGE INTENTIONALLY LEFT BLANK]
PACIFIC LIFE FUNDS
TRUSTEES AND OFFICERS INFORMATION
(Unaudited)
The business and affairs of the Pacific Life Funds (the “Trust”) are managed under the direction of the Board of Trustees under the Pacific Life Funds’ Declaration of Trust. Information pertaining to the trustees and officers of the Trust is set forth below, effective April 1, 2010. Trustees who are not deemed to be “interested persons” of the Trust, as defined in the 1940 Act, are referred to as “Independent Trustees.” Certain trustees and officers are deemed to be “interested persons” of the Trust and thus are referred to as “Interested Persons”, because of their positions with Pacific Life Insurance Company (“Pacific Life”) and Pacific Life Fund Advisors LLC, a wholly-owned subsidiary of Pacific Life. The Trust’s Statement of Additional Information includes additional information about the trustees. For information on availability of the Trust’s Statement of Additional Information, refer to the WHERE TO GO FOR MORE INFORMATION section of this report.
The address of each trustee and officer is c/o Pacific Life Funds, 700 Newport Center Drive, Newport Beach, CA 92660. |
Number of | ||||||
Position(s) with | Current Directorship(s) Held and Principal Occupation(s) | Portfolios in | ||||
the Fund and | (and certain additional occupation information) | Fund Complex | ||||
Name and Age | Length of Time Served* | During Past 5 Years | Overseen** | |||
INDEPENDENT TRUSTEES | ||||||
Frederick L. Blackmon Year of birth 1952 | Trustee since 9/13/05 | Trustee (1/05 to present) of Pacific Select Fund; Director (2005 to present) of Trustmark Mutual Holding Company; Former Executive Vice President and Chief Financial Officer (1995 to 2003) of Zurich Life and has been retired since that time; Executive Vice President and Chief Financial Officer (1989 to 1995) of Alexander Hamilton Life Insurance Company (subsidiary of Household International); Former Member, Board of Regents (1993 to 1996), Eastern Michigan University; and Former Member, Board of Governors (1994 to 1999), of Cranbrook Schools. | 69 | |||
Gale K. Caruso Year of birth 1957 | Trustee since 1/01/06 | Trustee (1/06 to present) of Pacific Select Fund; Former Member of the Board of Directors (2005 to 2009) of LandAmerica Financial Group, Inc.; Former President and Chief Executive Officer (1999 to 2003) of Zurich Life; Former Chairman, President and Chief Executive Officer of Scudder Canada Investor Services, Ltd. and Managing Director of Scudder Kemper Investments; Member of the Advisory Council of the Trust for Public Land in Maine; Member of the Board of Directors of Make-A-Wish of Maine; and Former Member, Board of Directors of the Illinois Life Insurance Council. | 69 | |||
Lucie H. Moore Year of birth 1956 | Trustee since 6/13/01 | Trustee (10/98 to present) of Pacific Select Fund; Former Partner (1984 to 1994) with Gibson, Dunn & Crutcher (Law); Member of the Board of Trustees (2007 to present) of Sage Hill School; Member of the Board of Trustees (2000 to 2009) of The Pegasus School; Member of the Board of Directors (2005 to present) of HomeWord; and Former Member of the Advisory Board (1993 to 2004) of Court Appointed Special Advocates (CASA) of Orange County. | 69 | |||
Nooruddin (Rudy) S. Veerjee Year of birth 1958 | Trustee since 9/13/05 | Trustee (1/05 to present) of Pacific Select Fund; Former President (1997 to 2000) of Transamerica Insurance and Investment Group and has been retired since that time; Former President (1994 to 1997) of Transamerica Asset Management; Former Chairman and Chief Executive Officer (1995 to 2000) of Transamerica Premier Funds (Mutual Fund); and Former Director (1994 to 2000) of various Transamerica Life Companies. | 69 |
See explanation of symbols on page G-4
G-1
PACIFIC LIFE FUNDS
TRUSTEES AND OFFICERS INFORMATION (Continued)
(Unaudited)
TRUSTEES AND OFFICERS INFORMATION (Continued)
(Unaudited)
Number of | ||||||
Position(s) with | Current Directorship(s) Held and Principal Occupation(s) | Portfolios in | ||||
the Fund and | (and certain additional occupation information) | Fund Complex | ||||
Name and Age | Length of Time Served* | During Past 5 Years | Overseen** | |||
INDEPENDENT TRUSTEES (Continued) | ||||||
G. Thomas Willis Year of birth 1942 | Trustee since 2/24/04 | Trustee (11/03 to present) of Pacific Select Fund; Certified Public Accountant in California (1967 to present); Audit Partner (1976 to 2002) of PricewaterhouseCoopers LLP (Accounting and Auditing) and has been retired since that time. | 69 | |||
INTERESTED PERSONS | ||||||
James T. Morris Year of birth 1960 | Chairman of the Board and Trustee since 1/11/07, (Chief Executive Officer 1/07 to 12/09, President 11/05 to 1/07 and Executive Vice President 6/05 to 11/05) | Director (4/07 to present), Chairman (5/08 to present), President and Chief Executive Officer (4/07 to present), Chief Operating Officer (1/06 to 4/07), Executive Vice President and Chief Insurance Officer (7/05 to 1/06) of Pacific Mutual Holding Company and Pacific LifeCorp; Director (4/07 to present), Chairman (5/08 to present), President and Chief Executive Officer (4/07 to present), Chief Operating Officer (1/06 to 4/07), Chief Insurance Officer (4/05 to 1/06), Executive Vice President (1/02 to 1/06), Senior Vice President (4/96 to 1/02), and Vice President (4/90 to 4/96) of Pacific Life; President and Chief Executive Officer (5/07 to present) of Pacific Life Fund Advisors LLC; Director (4/06 to present), Chairman (5/08 to present), President and Chief Executive Officer (4/07 to present), Chief Operating Officer (1/06 to 4/07), Chief Insurance Officer (4/05 to 1/06), Executive Vice President (1/02 to 1/06), and Senior Vice President (8/99 to 1/02) of Pacific Life & Annuity Company; and similar positions with other subsidiaries and affiliates of Pacific Life; and Chairman of the Board and Trustee (1/07 to present), Chief Executive Officer (1/07 to 12/09), President (11/05 to 1/07) and Executive Vice President (6/05 to 11/05) of Pacific Select Fund. | 69 | |||
Mary Ann Brown Year of birth 1951 | Chief Executive Officer since 1/01/10, (President 1/07 to 12/09, Executive Vice President 6/06 to 1/07) | Executive Vice President (4/10 to present), Senior Vice President (5/06 to 4/10) of Pacific LifeCorp; Executive Vice President (4/10 to present), Senior Vice President (3/05 to 4/10) of Pacific Life; Trustee (9/05 to present), Pacific Life Employees Retirement Plan; Senior Vice President (5/07 to present) of Pacific Life Fund Advisors LLC; Senior Vice President (6/08 to present) of Pacific Life Re Holdings LLC; Director and Senior Vice President (6/08 to present) of Pacific Life Re Holdings Limited; Current and prior Board Member and Vice Chairman (8/01 to present) and Chairman (7/04 to 10/05) of National Association of Variable Annuities; Senior Vice President (7/03 to 11/03), Finance, New York Life Insurance Company; MetLife, Inc. (12/98 to 6/03), Senior Vice President and Head of Individual Business Product Management (12/98 to 7/02) responsibilities included: President of New England Products and Services; Chairman, Security First Group (later MetLife Investors); Chairman, Chief Executive Officer and President, New England Pension and Annuity Company; Board Member, New England Zenith Funds; Board Member, Reinsurance Group of America, Chairman and Chief Executive Officer of Exeter Reinsurance Company, Ltd.; Chairman and Chief Executive Officer of Missouri Reinsurance Company, Ltd; Chairman of Underwriting Policy and Rate Setting Committees; Senior Vice President and Chief Actuary (7/02 to 6/03), MetLife, Inc.; Director and Senior Vice President (12/05 to present) of Pacific Alliance Reinsurance Ltd; Director and Senior Vice President (10/07 to present) of Pacific Alliance Reinsurance Company of Vermont; and Chief Executive Officer (1/10 to present), President (1/07 to 12/09) and Executive Vice President (6/06 to 1/07) of Pacific Select Fund. | 69 |
See explanation of symbols on page G-4
G-2
PACIFIC LIFE FUNDS
TRUSTEES AND OFFICERS INFORMATION (Continued)
(Unaudited)
TRUSTEES AND OFFICERS INFORMATION (Continued)
(Unaudited)
Number of | ||||||
Position(s) with | Current Directorship(s) Held and Principal Occupation(s) | Portfolios in | ||||
the Fund and | (and certain additional occupation information) | Fund Complex | ||||
Name and Age | Length of Time Served* | During Past 5 Years | Overseen** | |||
INTERESTED PERSONS (Continued) | ||||||
Mark W. Holmlund Year of birth 1961 | President since 1/01/10 | Executive Vice President (7/05 to present) and Chief Investment Officer (4/07 to present) of Pacific Mutual Holding Company and Pacific LifeCorp; Executive Vice President (1/01 to present) and Chief Investment Officer (4/07 to present) of Pacific Life; Director (6/07 to present), Executive Vice President (1/01 to present) and Chief Investment Officer (4/07 to present) of Pacific Life & Annuity Company; Executive Vice President and Chief Investment Officer (5/07 to present) of Pacific Life Fund Advisors, LLC; Chief Executive Officer (1/06 to present) of Pacific TriGuard Partners LLC; and President (1/10 to present) of Pacific Select Fund. | 69 | |||
Robin S. Yonis Year of birth 1954 | Vice President and General Counsel since 6/13/01 | Vice President, Fund Advisor General Counsel, and Assistant Secretary (5/07 to present) of Pacific Life Fund Advisors LLC; Vice President and Investment Counsel (4/04 to present), Assistant Vice President and Investment Counsel (11/93 to 4/04) of Pacific Life; Vice President and Investment Counsel (4/04 to 9/09), Assistant Vice President and Investment Counsel (8/99 to 4/04) of Pacific Life & Annuity Company; and Vice President and General Counsel (4/05 to present) of Pacific Select Fund. | 69 | |||
Brian D. Klemens Year of birth 1956 | Vice President and Treasurer since 6/13/01 | Vice President and Controller (10/07 to present), and Vice President and Treasurer (6/99 to 10/07) of Pacific Mutual Holding Company and Pacific LifeCorp; Vice President & Controller (10/07 to present), Vice President and Treasurer (12/98 to 10/07) of Pacific Life; Vice President and Controller (10/07 to present) and Vice President and Treasurer (5/07 to 10/07) of Pacific Life Fund Advisors LLC; and similar positions with other subsidiaries and affiliates of Pacific Life; and Vice President and Treasurer (4/96 to present) of Pacific Select Fund. | 69 | |||
Sharon E. Pacheco Year of birth 1957 | Vice President and Chief Compliance Officer since 6/04/04 | Vice President and Chief Compliance Officer (11/03 to present) of Pacific Mutual Holding Company and Pacific LifeCorp; Vice President (2/00 to present) and Chief Compliance Officer (1/03 to present), and Assistant Vice President (11/97 to 2/00) of Pacific Life; Vice President (4/00 to present) and Chief Compliance Officer (1/03 to present), and Assistant Vice President (8/99 to 4/00) of Pacific Life & Annuity Company; Vice President and Chief Compliance Officer (5/07 to present) of Pacific Life Fund Advisors LLC; and Vice President and Chief Compliance Officer (6/04 to present) of Pacific Select Fund. | 69 |
See explanation of symbols on page G-4
G-3
PACIFIC LIFE FUNDS
TRUSTEES AND OFFICERS INFORMATION (Continued)
(Unaudited)
TRUSTEES AND OFFICERS INFORMATION (Continued)
(Unaudited)
Number of | ||||||
Position(s) with | Current Directorship(s) Held and Principal Occupation(s) | Portfolios in | ||||
the Fund and | (and certain additional occupation information) | Fund Complex | ||||
Name and Age | Length of Time Served* | During Past 5 Years | Overseen** | |||
INTERESTED PERSONS (Continued) | ||||||
Eddie Tung Year of birth 1957 | Vice President and Assistant Treasurer since 11/14/05 | Assistant Vice President (4/03 to present) and Director (Variable Products Accounting) (4/00 to 4/03) of Pacific Life; Assistant Vice President (4/10 to present) of Pacific Life & Annuity Company; Assistant Vice President (5/07 to present) of Pacific Life Fund Advisors LLC; and Assistant Vice President and Assistant Treasurer (11/05 to present) of Pacific Select Fund. | 69 | |||
Howard T. Hirakawa Year of birth 1962 | Vice President since 6/20/06 | Vice President (5/07 to present) of Pacific Life Fund Advisors LLC; Vice President (4/05 to present), Assistant Vice President (4/00 to 4/05) and Director (Annuities & Mutual Funds) (5/98 to 4/00) of Pacific Life; Vice President (4/05 to 9/09) of Pacific Life & Annuity Company; and Vice President (6/06 to present) of Pacific Select Fund. | 69 | |||
Audrey L. Milfs Year of birth 1945 | Vice President since 7/01/09 and Secretary since 6/13/01 | Vice President and Secretary (8/97 to present) of Pacific Mutual Holding Company and Pacific LifeCorp; Director (8/97 to present), Vice President (4/91 to present), and Secretary (7/83 to present) of Pacific Life, Vice President and Secretary (5/07 to present) of Pacific Life Fund Advisors LLC ; and similar positions with other subsidiaries of Pacific Life; and Vice President (7/09 to present) and Secretary (7/87 to present) of Pacific Select Fund. | 69 | |||
Laurene E. MacElwee Year of birth 1966 | Vice President since 4/04/05 and Assistant Secretary since 6/13/01 | Assistant Vice President and Assistant Secretary (5/07 to present) of Pacific Life Fund Advisors LLC; Assistant Vice President (4/02 to present) and Director (Variable Products & Fund Compliance) (4/00 to 4/02) of Pacific Life; and Assistant Vice President and Assistant Secretary (4/05 to present) of Pacific Select Fund. | 69 | |||
Carleton J. Muench Year of birth 1973 | Vice President since 11/30/06 | Assistant Vice President (5/07 to present) of Pacific Life Fund Advisors LLC; Assistant Vice President (10/06 to present) of Pacific Life; Director of Research (5/05 to 9/06), and Senior Investment Analyst (10/03 to 4/05) of Mason Investment Advisory Services, Inc.; Investment Analyst (2/01 to 9/02), Due Diligence Analyst (1/00 to 1/01) and Performance Analyst (10/98 to 12/99) of Manulife Financial; and Assistant Vice President (11/06 to present) of Pacific Select Fund. | 69 |
* | A trustee serves until he or she resigns, retires, or his or her successor is elected and qualified. | |
** | As of March 31, 2010, the “Fund Complex” consisted of Pacific Life Funds (23 funds) and Pacific Select Fund (46 portfolios). |
G-4
PACIFIC LIFE FUNDS
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
AND FUND MANAGEMENT AGREEMENTS
(Unaudited)
The Board of Trustees (the “Trustees” or “Board”) of Pacific Life Funds (the “Trust”) oversees the management of each of the separate funds of the Trust (each a “Fund” and collectively, the “Funds”), and as required by Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”), initially approves, and determines annually whether to renew, the investment advisory agreement (the “Advisory Agreement”) with Pacific Life Fund Advisors LLC (“PLFA”) and each Fund management agreement (the “Fund Management Agreements,” together with the Advisory Agreement, the “Agreements”) with the various sub-advisers (“Fund Managers”). PLFA serves as the investment adviser for all of the Funds and manages the PL Money Market Fund directly under the name “Pacific Asset Management.” Hereinafter, all references to PLFA with respect to the PL Money Market Fund shall include Pacific Asset Management. For all other Funds, PLFA has retained other firms to serve as Fund Managers under PLFA’s supervision. The Board, including all of the Trustees who are not “interested persons,” as that term is defined in the 1940 Act (“Independent Trustees”), last renewed the Agreements at an in-person meeting of the Trustees held on December 15, 2009.* Additionally, at an in-person meeting on January 12, 2010, the Board, including all of the Independent Trustees, approved a new Fund Management Agreement effective July 1, 2010 with respect to the PL Floating Rate Loan Fund. Also, at an in-person meeting on March 24, 2010, the Board, including all of the Independent Trustees, approved a new Fund Management Agreement effective approximately June 1, 2010 with respect to the PL Comstock Fund.
At these and other meetings, the Trustees considered information (both written and oral) provided to assist them in their review of the Agreements and made assessments with respect to each Agreement. The Board also requested, received and reviewed written materials from PLFA and each Fund Manager submitted in response to requests from the Independent Trustees and supporting materials relating to those questions and responses. In addition, the Board received in-person presentations about the Funds throughout the year, and the Independent Trustees were advised by independent legal counsel with respect to these and other relevant matters. The Board reviewed a variety of factors and considered a significant amount of information, including information received on an ongoing basis at Board and committee meetings, including reports on Fund performance, expenses, fee comparisons, investment advisory, compliance, and other services provided to the Funds by PLFA and the Fund Managers. The Board also reviewed financial and profitability information regarding PLFA and the Fund Managers, as well as information regarding the organization and operations of each entity, such as their compliance monitoring, portfolio trading and brokerage practices and the personnel providing investment management and administrative services to each Fund. The Board reviewed data provided by PLFA that was gathered from various independent providers of investment company data, to provide the Board with information concerning the Funds’ investment performance, management fees and expense information. Additionally, the Independent Trustees retained an independent consultant (“Independent Consultant”) to assist the Trustees with certain of their analyses and to provide other relevant information. In connection with their analyses, the Independent Consultant utilized and provided the Independent Trustees with data obtained from independent service providers, as well as from other sources.
The Trustees’ determinations were made on the basis of each Trustee’s business judgment after consideration of all the information presented. In reviewing the materials presented and in considering the information in the management presentations, the Trustees did not identify any single issue or particular information that, in isolation, would be a controlling factor in making a final decision regarding the proposed Agreements. Individual Trustees may have given different weights to certain factors and assigned various degrees of materiality to information received in connection with the approval process. The following summary describes the most important, but not all, of the factors considered by the Trustees in approving the Agreements, and in the case of the Independent Trustees, in light of the legal advice furnished to them by independent legal counsel and information from the Independent Consultant they retained. In reviewing these matters, the Trustees took into account the Portfolio Optimization Funds and each Underlying Fund separately. This discussion is not intended to be all-inclusive.
Annual Consideration and Approval of Investment Advisory and Fund Management Agreements
In evaluating the Advisory Agreement and each Fund Management Agreement, the Board, including the Independent Trustees, considered the following factors, among others:
1. Nature, Extent and Quality of Services
PLFA, its personnel and its resources. The Trustees considered the depth and quality of PLFA’s investment management process, including its monitoring and oversight of the Fund Managers; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; and the overall financial strength and stability of its organization. The Trustees considered the high quality of the products and services provided by PLFA and its affiliates, such as the many educational services and tools to assist intermediaries in effectively understanding and meeting shareholder needs.
The Trustees also considered that PLFA’s investment, legal and compliance professionals have access to and utilize a variety of resources and systems relating to investment management, compliance, trading, performance and fund accounting. The Trustees further considered PLFA’s continuing need to attract and retain qualified personnel and to maintain and enhance its resources and systems.
The Trustees considered PLFA’s continued development and use of analytical tools for assessing performance of the Fund Managers, conducting an attribution analysis on performance and reporting on performance to the Trustees. The Trustees noted that PLFA appeared to have implemented effective controls and monitoring of investment style consistency by Fund Managers and for analyzing the use of derivatives by Fund Managers.
* | At the meeting, the Board did not consider the continuance of the Agreements relating to the PL Large-Cap Growth Fund, as that Agreement was not up for renewal at this time. |
G-5
PACIFIC LIFE FUNDS
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
AND FUND MANAGEMENT AGREEMENTS (Continued)
(Unaudited)
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
AND FUND MANAGEMENT AGREEMENTS (Continued)
(Unaudited)
The Trustees considered PLFA’s policies, procedures and systems to ensure compliance with applicable laws and regulations with respect to the Funds that PLFA directly manages, its compliance monitoring of the Fund Managers, and its commitment to those programs; PLFA’s efforts to keep the Trustees informed about the Fund Managers; and its attention to matters that may involve conflicts of interest with each Fund. In this regard, the Trustees reviewed information throughout the year on PLFA’s compliance policies and procedures, its compliance history, and reports from the Trust’s Chief Compliance Officer (“CCO”) on compliance by PLFA, the Fund Managers, and the Funds with applicable laws and regulations. The Trustees additionally reviewed information concerning any responses by PLFA to regulatory and compliance developments throughout the year.
The Fund Managers. The Trustees considered various materials relating to the Fund Managers, including copies of each existing Fund Management Agreement; copies of the Form ADV for each Fund Manager; financial information relating to each Fund Manager; and other information deemed relevant to the Trustees’ evaluation of each Fund Manager, including qualitative assessments from senior management of PLFA.
The Trustees considered the benefits to shareholders of retaining each Fund Manager and continuing the Fund Management Agreements, particularly in light of the nature, extent, and quality of the services that have been provided by the Fund Managers. The Trustees considered the quality of the management services which have benefited and should continue to benefit the Funds and their shareholders, the organizational depth and resources of the Fund Managers, including the background and experience of each of the Fund Manager’s management and the expertise of each Fund Manager’s fund management team, as well as the investment methodology used by the Fund Manager. The Trustees also considered that the CCO had in place a systematic process for periodically reviewing each Fund Manager’s written compliance policies and procedures, including the assessment of each Fund Manager’s compliance program as required under Rule 38a-1 of the 1940 Act and each Fund Manager’s code of ethics. The Trustees also considered that each Fund Manager agreed to cooperate with the CCO in reviewing its compliance operations.
In making their assessments, the Trustees considered that PLFA has historically exercised diligence in monitoring the performance of the Fund Managers, and has recommended and taken measures to attempt to remedy relative underperformance by a Fund when PLFA and the Trustees believed it to be appropriate.
The Board concluded that it was satisfied with the nature, extent and quality of the investment management services provided by PLFA and the Fund Managers.
2. Investment Results
The Trustees considered the investment results of each Fund in light of its objective and market conditions over the past year. The Trustees compared each Fund’s total returns with both the total returns of appropriate groups of peer funds, based on information provided by PLFA using data from independent sources, and with one or more relevant benchmark index. The Independent Trustees also considered information provided by the Independent Consultant who provided a presentation and analysis to the Trustees regarding performance utilizing data from various databases. The information provided to the Trustees included each Fund’s performance record for the year-to-date, one-, three-, and five-year periods, as applicable. In reviewing the performance data provided by the independent sources, as well as the respective benchmark indices, the Trustees noted that several Funds had exceeded their peer groups and/or respective benchmark indices over certain periods. The Trustees also observed, however, that several of the Funds had underperformed their peer groups over certain periods and/or trailed their respective benchmark indices over certain periods. The Trustees discussed with PLFA the fact that certain periods of underperformance may be transitory while other periods of underperformance may be reflective of broader issues which may warrant consideration of corrective action. The Trustees discussed these Funds with representatives of PLFA, including an assessment of the approach used by the Fund Managers as well as oversight and monitoring by PLFA as the investment adviser, to gain an understanding of underperformance and to assess whether any actions would be appropriate.
The Trustees also reviewed the monitoring of the Fund Managers’ investment results by PLFA, including PLFA’s historical practice of recommending to the Trustees the use of a new manager if performance consistently lagged and could not be improved within a reasonable timeframe. In this regard, the Trustees considered that PLFA indicated to the Trustees that it intended to recommend a change in Fund Manager for the PL Floating Rate Loan Fund in the near future. The Trustees noted that many of the best independent investment advisers consistently compete to be considered to provide fund management services for the Funds. Generally, the Trustees noted that there continues to be a good record of well managed Funds that work well in the Portfolio Optimization Funds, which are asset allocation funds. The Trustees also noted that the Funds continue to deliver the investment style as disclosed to shareholders. The Trustees further noted that only the Portfolio Optimization Funds and the PL Money Market Fund are open to new investors.
The Board concluded that PLFA continues to have a strong record of effectively managing a multi-manager fund group designed to give shareholders a reasonable array of choices through which to implement their investment programs. The Board further concluded that PLFA was implementing each Fund’s investment objective either directly or through the selection of Fund Managers and that PLFA’s record in managing each Fund indicates that its continued management as well as the continuation of the respective Fund Management Agreements will benefit each Fund and its shareholders.
G-6
PACIFIC LIFE FUNDS
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
AND FUND MANAGEMENT AGREEMENTS (Continued)
(Unaudited)
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
AND FUND MANAGEMENT AGREEMENTS (Continued)
(Unaudited)
3. Advisory Fees and Total Expense Ratios
The Trustees requested, received and reviewed information from PLFA relating to the advisory fees and sub-advisory fees, respectively, and total operating expense ratios for each of the Funds. The Independent Trustees also requested and reviewed information from the Independent Consultant along with their analysis of the advisory fee and certain expenses. The Trustees reviewed the advisory fees and total operating expense ratios of each Fund and compared such amounts with the average fee and expense levels of other funds in applicable peer fund groups. During their review, the Trustees noted that all of the Funds were subject to expense limits agreed to by PLFA. The Trustees also reviewed written materials prepared by PLFA based on peer group information retrieved from the Morningstar database.
The Trustees also considered information from the Fund Managers regarding the comparative sub-advisory fees charged under other investment advisory contracts, such as contracts of each Fund Manager with other registered investment companies or other types of clients. The Trustees noted that in many cases there were differences in the level of services provided to the Funds by the Fund Managers and that the level of fees provided by these Fund Managers on these other accounts were due to the different nature of the accounts, or because accounts were proprietary accounts or employee or family accounts. These differences often explained differences in fee schedules. The Trustees were mindful that, with regard to the sub-advised Funds, the fee rates were the result of arms’-length negotiations between PLFA and the Fund Managers, and that any sub-advisory fees are paid by PLFA and are not paid directly by a Fund.
The Trustees observed that certain of the Funds’ contractual advisory fees were higher than the average of their respective Morningstar category while others were either lower or approximately equal to these averages.
The Board concluded that the advisory fees and total expenses of each Fund were fair and reasonable. |
4. Costs, Level of Profits and Economies of Scale
The Trustees reviewed information provided by PLFA and the Fund Managers regarding PLFA’s costs of sponsoring the Funds and information regarding the profitability of PLFA and the Fund Managers.
PLFA’s and the Fund Managers’ Costs and Profitability. The Trustees noted that, based on the data available, PLFA appears to be providing products that are competitively priced with other funds, especially multi-manager funds. The Board considered the costs of the services to be provided and the overall financial results for PLFA and its affiliates from the management of the Trust, both including and excluding distribution costs. The Board noted that the Funds have not been profitable to PLFA and its affiliates in the past, due in part to the relatively low level of assets. The Board also noted that management did not anticipate the Funds becoming profitable in the near-term, given the level of subsidy and expense reimbursements provided by PLFA and its affiliates.
The Trustees considered that the Funds are well managed, and provide shareholders with a wide choice of premier Fund Managers and asset allocation services at reasonable fee levels. The Board noted that PLFA had taken steps to ensure that shareholders benefit by negotiating favorable terms with service providers, including a recently negotiated agreement that may result in lower total fund expenses in the future by reducing fees for the Funds’ custody, fund accounting and transfer agency services, and providing certain support services to the Funds on an approximate cost basis as opposed to an asset-based charge.
The Trustees also reviewed information provided regarding the structure and manner in which PLFA’s and the Fund Managers’ investment professionals were compensated and their respective views of the relationship of such compensation to the attraction and retention of quality personnel. The Trustees considered PLFA’s willingness to invest in technology, infrastructure, and staff to reinforce and offer new services and to accommodate changing regulatory requirements.
With respect to the Fund Managers, the Trustees noted that it was difficult to accurately determine or evaluate the profitability of the Fund Management Agreements to the Fund Managers because of, among other things, the inconsistency in the types of information provided by the Fund Managers, the fact that many Fund Managers manage substantial assets other than the Funds and, further, that any such assessment would involve assumptions regarding the Fund Managers’ expense allocation policies, capital structure, cost of capital, business mix and other factors.
Accordingly, in the case of the Fund Managers, the Trustees gave less weight to profitability considerations and did not view that this data was as important as other data given the arms’-length nature of the relationship (for the Funds that are sub-advised) between PLFA and such Fund Managers with respect to the negotiation of fund management fees.
Economies of Scale. The Trustees noted and considered the extent to which economies of scale are increasingly realized as each Fund grows and whether advisory fee levels reflect economies of scale if the Funds grow in size. The Trustees noted the Funds have relatively small asset levels that do not currently produce significant economies of scale. The Trustees noted, however, PLFA’s commitment to competitive total expenses of the Funds through expense limitation agreements, its consistent reinvestment in the business in the form of improvements in technology and customer service, and the various expense caps the Funds have been subject to since their inception.
The Board concluded that the Funds’ cost structures were reasonable in light of the Trust’s size.
G-7
PACIFIC LIFE FUNDS
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
AND FUND MANAGEMENT AGREEMENTS (Continued)
(Unaudited)
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
AND FUND MANAGEMENT AGREEMENTS (Continued)
(Unaudited)
5. Ancillary Benefits
The Trustees requested and received from PLFA and the Fund Managers information concerning other benefits received by PLFA, the Fund Managers, and their affiliates as a result of their respective relationship with the Funds, including reimbursement at an approximate cost basis for support services in the case of PLFA, as well as commissions paid to broker-dealers affiliated with certain Fund Managers and the use of soft-dollars by certain of the Fund Managers. The Trustees also considered information concerning other significant economic relations between the Fund Managers and their affiliates with PLFA and its affiliates and noted PLFA’s processes and procedures to identify and disclose such relationships to the Board. The Trustees also considered information provided to them as to how conflicts of interest that may arise from these relationships are managed.
The Board concluded that such benefits were consistent with those generally derived by investment advisers to mutual funds or were otherwise not unusual.
6. Conclusion
Based on their review, including their consideration of each of the factors referred to above, and assisted by the advice of the Independent Consultant and independent counsel to the Independent Trustees, the Board, including the Independent Trustees, concluded that the Advisory Agreement and each applicable Fund Management Agreement are fair and reasonable with respect to each Fund and its shareholders, and that the renewal of the Advisory Agreement and each applicable Fund Management Agreement would be in the best interests of the Funds and their shareholders. No single factor was determinative of the Board’s decision to approve the Advisory Agreement and each applicable Fund Management Agreement, but rather the Board based its determination on the total mix of information available to it.
Other Fund Management Agreement Approvals
In addition to considering the existing Fund Management Agreements during the period October 1, 2009 through March 31, 2010, the Board considered and approved changes with respect to the PL Floating Rate Loan Fund and the PL Comstock Fund. Under the 1940 Act, a change in a Fund Manager, a change in the compensation paid to a Fund Manager, or an assignment of any Fund Management Agreement requires shareholder approval of a new Fund Management Agreement. However, under an exemptive order issued to Pacific Life Insurance Company and the Trust by the Securities and Exchange Commission (“SEC”) on January 13, 1999 and relied upon by PLFA, in accordance with the terms of the exemptive order, PLFA can hire, terminate and replace, as applicable, Fund managers and enter into new Fund Management Agreements (except, as a general matter, Fund Managers affiliated with PLFA) without shareholder approval.
PL Floating Rate Loan Fund
At an in-person meeting on January 12, 2010, the Board, including all of the Independent Trustees, appointed Eaton Vance Management (“Eaton Vance”) as the new Fund Manager and approved, effective July 1, 2010, a new Fund Management Agreement with Eaton Vance with respect to the PL Floating Rate Loan Fund (the “Eaton Vance Fund Management Agreement”). In connection with this matter, also at the January 12, 2010 meeting, the Board terminated the Fund Management Agreement for the Fund with the prior fund manager upon the effectiveness of the Eaton Vance Fund Management Agreement.
In evaluating the Eaton Vance Fund Management Agreement, the Board, including the Independent Trustees, considered the factors described below. Additionally, the Board considered the various screening processes that PLFA utilizes in identifying a proposed new fund manager, including screening for qualified firms through the use of quantitative data and information gathered from independent third-party databases, as well as the of due diligence conducted by PLFA on the investment resources and personnel of a fund manager and an assessment of the investment strategies used by a fund manager. In addition, the Board reviewed the specific criteria and information evaluated by PLFA during the selection process of Eaton Vance, including information about other firms considered by PLFA, and PLFA’s analysis in reaching its conclusion to recommend Eaton Vance as the new Fund Manager.
In evaluating the Eaton Vance Fund Management Agreement, the Board, including the Independent Trustees, considered the following factors, among others:
1. Nature, Extent and Quality of Services to be Provided
The Trustees considered the benefits to shareholders of retaining Eaton Vance as the Fund Manager, particularly in light of the nature, extent, and quality of the services expected to be provided by Eaton Vance. In this regard, the Trustees considered various materials relating to the proposed Fund Manager, including copies of the proposed Eaton Vance Fund Management Agreement; copies of the Form ADV for Eaton Vance; financial information relating to Eaton Vance; and other information deemed relevant to the Trustees’ evaluation of Eaton Vance, including qualitative assessments from senior management of PLFA.
The Trustees considered that under the Eaton Vance Fund Management Agreement, Eaton Vance would be responsible for providing the investment management services for the Fund’s assets, including investment research, advice and supervision and determining which securities would be purchased or sold by the Fund. The Trustees considered the quality of the management services expected to be provided to the PL Floating Rate Loan Fund over both the short- and long-term, the organizational depth and resources of Eaton Vance, including the
G-8
PACIFIC LIFE FUNDS
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
AND FUND MANAGEMENT AGREEMENTS (Continued)
(Unaudited)
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
AND FUND MANAGEMENT AGREEMENTS (Continued)
(Unaudited)
background and experience of Eaton Vance’s management and the expertise of the portfolio management team, as well as the investment strategies, processes and philosophy to be used for the investment strategy.
In addition, the Trustees considered that the Trust’s CCO had reviewed the written compliance policies and procedures of Eaton Vance, including the assessment of its compliance programs as required under Rule 38a-1 of the 1940 Act and its code of ethics, prior to the effectiveness of the new Eaton Vance Fund Management Agreement.
In making these assessments, the Trustees took note of the extensive due diligence PLFA conducted on Eaton Vance, and was aided by the assessments and recommendations of PLFA and the in-person presentation and materials provided by Eaton Vance. The Trustees considered PLFA’s efforts and process to search for and screen advisory firms that are qualified to manage a bank loan fund, and the identification by PLFA of Eaton Vance to serve as Fund Manager with regard to the day-to-day investment activities of the PL Floating Rate Loan Fund.
In this regard the Trustees considered that the search criteria employed by PLFA included identification of a firm with sufficient size, market presence and resources to properly manage the Fund, a dedicated, experienced management team, competitive peer ranking and competitive advisory fees. The Trustees also considered that PLFA has historically exercised diligence in monitoring the performance of the Fund Managers, and has recommended and taken measures to attempt to remedy relative underperformance by a Fund when PLFA and the Board believed appropriate. The Board concluded it was satisfied with the nature, extent and quality of the investment management services anticipated to be provided to the PL Floating Rate Loan Fund by Eaton Vance under the Eaton Vance Fund Management Agreement.
2. Performance
The Trustees considered information about the historical performance of a composite of separate accounts (the “Comparable Composite Performance”) and the historical performance of an investment company (the “Comparable Fund Performance”) advised by the same Eaton Vance fund management team that would manage the PL Floating Rate Loan Fund using similar investment strategies as those proposed for the PL Floating Rate Loan Fund. The Trustees considered the Comparable Composite Performance against a pertinent benchmark and against its peer group category for each year over a ten-year period as of September 30, 2009, and considered the Comparable Fund Performance against a pertinent benchmark and against its peer group category for the year-to-date, one-, three- and five-year periods as of September 30, 2009. Additionally, the Trustees considered performance information presented by PLFA for other potential fund managers. The Trustees also considered the need for Eaton Vance to adhere to the Fund’s general investment mandate in order to function appropriately in the Portfolio Optimization Funds. The Board determined that Eaton Vance’s performance record was acceptable.
3. Fund Management Fees
The Trustees considered information regarding the comparative advisory fees charged under an investment advisory contract between Eaton Vance and another fund managed pursuant to a comparable investment strategy. The Trustees noted that there were differences in the level of services proposed to be provided to the PL Floating Rate Loan Fund by Eaton Vance and the level of services provided by Eaton Vance to the other fund, and that those differences were due to the different nature of the accounts or an affiliation between Eaton Vance and the account. These differences often explained differences in fee schedules. The Trustees noted that the fee rates were the result of arms’-length negotiations between PLFA and Eaton Vance, and that the PL Floating Rate Loan Fund’s sub-advisory management fees are paid by PLFA and are not paid directly by the PL Floating Rate Loan Fund. The Trustees considered that proposed sub-advisory fee is lower than the sub-advisory fee paid to the prior Fund Manager and that PLFA has proposed a partial waiver of its advisory fee for the Fund in order to share such fee reductions with shareholders. The Board concluded that the compensation payable under the Eaton Vance Fund Management Agreement is fair and reasonable.
4. Costs, Level of Profits
The Trustees reviewed information regarding the costs to Eaton Vance of managing the PL Floating Rate Loan Fund and the projected profitability of the Eaton Vance Fund Management Agreement to Eaton Vance to the extent practicable based on the financial information provided by Eaton Vance. This information is only estimated because there is no actual operating history for Eaton Vance as the Fund Manager of the PL Floating Rate Loan Fund. The Trustees gave less weight to projected profitability considerations and did not view this information as important as other information provided in connection with this matter, given the arms’-length nature of the relationship between PLFA and Eaton Vance for the negotiation of sub-advisory fees, the fact that such fees are paid by PLFA and the fact that they are projections. The Board concluded that the PL Floating Rate Loan Fund’s fee structure reflected in the Eaton Vance Fund Management Agreement with respect to the PL Floating Rate Fund is fair and reasonable.
5. Ancillary Benefits
The Trustees received from PLFA information concerning other benefits that may be received by Eaton Vance and its affiliates as a result of their relationship with the PL Floating Rate Loan Fund, including commissions that may be paid to broker-dealers affiliated with the Fund Manager and the anticipated use of soft-dollars by the Fund Manager. In this regard, the Trustees noted that Eaton Vance represented it did not anticipate utilizing an affiliated broker-dealer for trades and or utilizing soft dollar credits generated by fund commissions to pay for research services. The potential benefits that may be derived by Eaton Vance from its relationship with the PL Floating Rate Loan Fund could
G-9
PACIFIC LIFE FUNDS
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
AND FUND MANAGEMENT AGREEMENTS (Continued)
(Unaudited)
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
AND FUND MANAGEMENT AGREEMENTS (Continued)
(Unaudited)
include larger assets under management and reputational benefits, which are consistent with those generally derived by investment advisers to mutual funds. The Trustees considered potential benefits to be derived by Eaton Vance from its relationship with the PL Floating Rate Loan Fund and that such benefits were consistent with those generally derived by sub-advisers to mutual funds or were otherwise not unusual.
6. Conclusion
Based on its review, including the consideration of each of the factors referred to above, the Board found that: (i) the compensation payable under the Eaton Vance Fund Management Agreement is fair and reasonable; and (ii) the Eaton Vance Fund Management Agreement is in the best interests of the PL Floating Rate Loan Fund and its shareholders. No single fact was determinative of the Board’s findings, but rather the Board based their determination on the total mix of information available to it.
PL Comstock Fund
At an in-person meeting on March 24, 2010, the Board, including all of the Independent Trustees, appointed Invesco Advisers, Inc. (“Invesco”) as the new Fund Manager and approved, effective approximately June 1, 2010, a new Fund Management Agreement with Invesco with respect to the PL Comstock Fund (the “Invesco Fund Management Agreement”). Morgan Stanley Investment Management Inc. (“Morgan Stanley”), doing business as Van Kampen, the Fund’s current Fund Manager, entered into an agreement on October 19, 2009 with Invesco Ltd. to sell Morgan Stanley’s Van Kampen asset management business and portions of Morgan Stanley’s related businesses to Invesco Ltd. (the “Transaction”). The Transaction is expected to close on approximately June 1, 2010. The portfolio management team to the Fund is included in the Transaction and is expected to join Invesco after the Transaction closes. The Transaction will constitute an assignment, and therefore a termination, of the current Fund Management Agreement with Morgan Stanley and a new agreement with Invesco, an affiliate of Invesco Ltd., was approved in order to allow for the continued management of the Fund.
In evaluating the Invesco Fund Management Agreement for the PL Comstock Fund, the Board, including the Independent Trustees, considered the factors described below. Additionally, the Trustees considered, among other things, that the terms of the Invesco Fund Management Agreement were substantially the same as the Morgan Stanley Fund Management Agreement, and that Invesco would provide the same general investment advisory services to the Fund as have been provided by Morgan Stanley and the fee rates under the Invesco Fund Management Agreement were the same with respect to the Fund. The Trustees also considered that Invesco represented that: (i) the nature and quality of the services which Invesco will provide to the Fund will not change as a result of the Transaction; (ii) no significant changes are anticipated in the advisory services currently being provided and the Morgan Stanley investment professionals and personnel currently managing the Fund would join Invesco and continue to manage the Fund; and (iii) PLFA recommended that Invesco serve as the new Fund Manager to the Fund.
The Trustees noted that, in approving the renewal of the Morgan Stanley Fund Management Agreement at the December 15, 2009 meeting of the Board of Trustees, they had reviewed the Fund’s investment performance and the sub-advisory fees paid by the Fund.
In evaluating the Invesco Fund Management Agreement, the Board, including the Independent Trustees, considered the following factors, among others:
1. Nature, Extent and Quality of Services to be Provided
The Trustees considered the benefits to shareholders of retaining Invesco as the Fund Manager, particularly in light of the nature, extent, and quality of the services expected to be provided by Invesco. In this regard, the Trustees considered various materials relating to the proposed Fund Manager, including copies of the proposed Invesco Fund Management Agreement; copies of the Form ADV for Invesco; financial information relating to Invesco; and other information deemed relevant to the Trustees’ evaluation of Invesco, including qualitative assessments from senior management of PLFA.
The Trustees considered that under the Invesco Fund Management Agreement, Invesco would be responsible for providing the investment management services for the Fund’s assets, including investment research, advice and supervision and determining which securities would be purchased or sold by the Fund. The Trustees considered the quality of the management services expected to be provided to the PL Comstock Fund over both the short- and long-term, the organizational depth and resources of Invesco, including the background and experience of Invesco’s management and the expertise of the portfolio management team, as well as the investment strategies, processes and philosophy to be used for the investment strategy.
In addition, the Trustees considered that the Trust’s CCO had reviewed the written compliance policies and procedures of Invesco, including the assessment of its compliance program as required under Rule 38a-1 of the 1940 Act and its code of ethics, prior to the effectiveness of the new PL Comstock Fund Agreement. The Board considered that the Trust’s CCO will monitor the Fund Manager’s compliance program, including any material changes to the Fund Manager’s compliance program that may result from the Transaction, and will report to the Board as necessary.
In making these assessments, the Trustees took note of the extensive due diligence PLFA conducted on Invesco, and was aided by the assessments and recommendations of PLFA and the materials provided by Invesco. The Trustees considered that Invesco is a firm with sufficient size, market presence and resources to properly manage the PL Comstock Fund, Invesco’s ability to manage a large pool of assets
G-10
PACIFIC LIFE FUNDS
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
AND FUND MANAGEMENT AGREEMENTS (Continued)
(Unaudited)
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
AND FUND MANAGEMENT AGREEMENTS (Continued)
(Unaudited)
given the size of the Fund, and the fact that the portfolio management team would generally remain intact when it moved from the current Fund Manager, Morgan Stanley, to Invesco.
The Trustees also considered that PLFA has historically exercised diligence in monitoring the performance of the Fund Managers, and has recommended and taken measures to attempt to remedy relative underperformance by a Fund when PLFA and the Board believed appropriate. The Board concluded it was satisfied with the nature, extent and quality of the investment management services anticipated to be provided to the PL Comstock Fund by Invesco under the Invesco Fund Management Agreement.
2. Performance
The Trustees noted that they had reviewed the investment performance of the Fund in connection with the renewal of the Fund Management Agreement with the prior Fund Manager, Morgan Stanley, at their meeting on December 15, 2009, as discussed above, in addition to regular quarterly review of investment performance of the Fund.
3. Fund Management Fees
The Trustees noted that they had reviewed the investment advisory fees paid by the PL Comstock Fund at their meeting on December 15, 2009, as discussed above. The Trustees considered that the portfolio management fees would remain the same, despite the change in the Fund Manager that resulted from the Transaction. The Trustees further noted that Invesco represented that information provided by Morgan Stanley for the Board’s December 15, 2009 meeting regarding advisory fees charged under investment advisory contracts between Morgan Stanley and other funds and institutional accounts managed pursuant to a comparable investment strategy by the same portfolio management team that would manage the PL Comstock Fund would not change as a result of the Transaction.
4. Costs, Level of Profits
The Trustees reviewed information regarding the costs to Invesco of managing the PL Comstock Fund and the projected profitability of the Invesco Fund Management Agreement to Invesco to the extent practicable based on the financial information provided by Invesco. The Board noted that this information is only estimated because there is no actual operating history for Invesco managing the PL Comstock Fund. The Trustees gave less weight to profitability considerations and did not view this information as important as other information provided in connection with this matter, given the arms’-length nature of the relationship between PLFA and Invesco for the negotiation of sub-advisory fees, the fact that such fees are paid by PLFA, and the fact that they are projections. The Board concluded that the PL Comstock Fund’s fee structure reflected in the Invesco Fund Management Agreement with respect to the PL Comstock Fund is fair and reasonable.
5. Ancillary Benefits
The Trustees received information concerning other benefits that may be received by Invesco and its affiliates as a result of their relationship with the PL Comstock Fund, including commissions that may be paid to broker-dealers affiliated with the Fund Manager and the anticipated use of soft-dollars by the Fund Manager. In this regard, the Trustees noted that Invesco represented it did not anticipate utilizing an affiliated broker-dealer for trades but did anticipate utilizing soft dollar credits generated by portfolio commissions to pay for research services. The potential benefits that may be derived by Invesco from its relationship with the PL Comstock Fund could include larger assets under management and reputational benefits, which are consistent with those generally derived by investment advisers to mutual funds. The Trustees considered potential benefits to be derived by Invesco from its relationship with the PL Comstock Fund and that such benefits were consistent with those generally derived by sub-advisers to mutual funds or were otherwise not unusual.
6. Conclusion
Based on its review, including the consideration of each of the factors referred to above, the Board found that: (i) the compensation payable under the Invesco Fund Management Agreement is fair and reasonable; and (ii) the Invesco Fund Management Agreement is in the best interests of the PL Comstock Fund and its shareholders. No single fact was determinative of the Board’s findings, but rather the Board based their determination on the total mix of information available to it.
G-11
PACIFIC LIFE FUNDS
WHERE TO GO FOR MORE INFORMATION
(Unaudited)
Availability of Quarterly Holdings
The Trust files Form N-Q (complete schedules of fund holdings) with the Securities and Exchange Commission (the “SEC”) for the first and third quarters of each fiscal year not later than 60 days after the close of the applicable quarter end. The Trust’s Form N-Q, (when required) is filed pursuant to applicable regulation and is available after filing (i) on the SEC’s Web site at http://www.sec.gov; (ii) for review and copying at the SEC’s Public Reference Room in Washington, D.C. (Information on the operation of the Public Reference Room may be obtained by calling the SEC at 1-800-SEC-0330); and (iii) on the Trust’s Webpage at http://www.PacificLife.com. The SEC may charge you a fee for this information.
Availability of Proxy Voting Record
By August 31 of each year, the Trust files information regarding how portfolio managers voted proxies relating to fund securities during the most recent twelve-month period ended June 30. Such information is available after filing on the Trust’s’ Website and on the SEC’s Website noted below.
Information Relating to Investments Held by the Pacific Life Funds
For complete descriptions of the various securities and other instruments held by the Trust and their risks, please see the Trust’s prospectus and Statement of Additional Information (“SAI”). For a description of bond ratings, please see the Trust’s SAI. The prospectus and SAI are available as noted below.
Availability of Proxy Voting Policies
A description of the Proxy Voting Policies and Procedures that the Trust uses to determine how to vote proxies relating to fund securities is described in the Trust’s SAI.
Availability of a Complete Schedule of Investments
The Trust’s annual and semi-annual reports may contain a summary schedule of investments for certain funds. A complete schedule for the summary schedule of investments presented is available as noted below.
How to obtain Information
The Trust’s prospectus, SAI (including Proxy Voting Policies) and complete schedule of investments are available: |
• | On the Trust’s Website at http://www.PacificLife.com | ||
• | On the SEC’s Website at http://www.sec.gov | ||
• | Upon request by calling, without charge, 1-800-722-2333, 7 a.m. through 5 p.m. Pacific Time |
G-12
PACIFIC LIFE FUNDS ANNUAL REPORT
as of March 31, 2010
as of March 31, 2010
PACIFIC LIFE FUNDS
P.O. Box 9768
Providence, RI 02940-9768
P.O. Box 9768
Providence, RI 02940-9768
3012-10A
Item 2. Code of Ethics.
As of the end of the period covered by this report, the Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no substantive amendments or waivers to the Code of Ethics during the period covered by this report.
A copy of this Code of Ethics is filed as Exhibit 99 to this Form N-CSR.
Item 3. Audit Committee Financial Expert.
The Registrant’s Board has determined that G. Thomas Willis, a member of the Registrant’s Audit Committee, is an “audit committee financial expert” and “independent,” as such terms are defined in this Item. This designation does not increase the designee’s duties, obligations or liability as compared to his duties, obligations and liability as a member of the Audit Committee and of the Board; nor does it reduce the responsibility of the other Audit Committee members. There may be other individuals who, through education or experience, would qualify as “audit committee financial experts” if the Board had designated them as such. Most importantly, the Board believes each member of the Audit Committee contributes significantly to the effective oversight of the Registrant’s financial statements and condition. Mr. Willis is a retired partner of PricewaterhouseCoopers LLP.
Item 4. Principal Accountant Fees and Services.
Audit Fees
(a) | The aggregate fees billed for the fiscal years ended March 31, 2010 and 2009 for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $364,450 and $331,550, respectively. |
Audit-Related Fees
(b) | There were no aggregate fees billed for the fiscal years ended March 31, 2010 and 2009 for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item. |
Tax Fees
(c) | The aggregate fees billed for the fiscal years ended March 31, 2010 and 2009 for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $79,350 and $76,400, respectively. The nature of the services comprising the fees was the review of income tax returns and excise tax. |
All Other Fees
(d) | There were no aggregate fees billed for the fiscal years ended March 31, 2010 and 2009 for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item. |
(e)(1) | The Audit Committee is required to pre-approve audit and non-audit services performed for the Registrant by the independent auditor as outlined below in order to assure that the provision of such services does not impair the auditor’s independence: | ||
Pre-Approval Requirements for Services to Registrant. Before the Auditor is engaged by the Registrant to render audit related or permissible non-audit services, either: | |||
(i) The Audit Committee shall pre-approve such engagement; or | |||
(ii) Such engagement shall be entered into pursuant to pre-approval policies and procedures established by the Audit committee. Any such policies and procedures must (1) be detailed as to the particular service and (2) not involve any delegation of the Audit Committee’s responsibilities to the Adviser. The Audit Committee may delegate to one or more of its members the authority to grant pre-approvals. The pre-approval policies and procedures shall include the requirement that the decisions of any member to whom authority is delegated under this Section shall be presented to the full Audit Committee at its next scheduled meeting. | |||
(iii) De Minimis Exceptions to Pre-Approval Requirements. Pre-approval for a service provided to the Registrant other than audit, review or attest services is not required if: (1) the aggregate amount of all such non-audit services provided to the Registrant constitutes not more than 5 percent of the total amount of revenues paid by the Registrant to the Auditor during the fiscal year in which the non-audit services are provided; (2) such services were not recognized by the Registrant at the time of the engagement to be non-audit services; and (3) such services are promptly brought to the attention of the Audit Committee and are approved by the Audit Committee or by one or more members of the Audit Committee to whom authority to grant such approvals has been delegated by the Audit Committee. | |||
Pre-Approval of Non-Audit Services Provided to the Adviser and Others. The Audit Committee shall pre-approve any non-audit services proposed to be provided by the Auditor to (i) the Adviser and (ii) any entity in the investment company complex (see note 4), if the nature of the services provided relate directly to the operations or financial reporting of the Registrant. | |||
Application of De Minimis Exception: The De Minimis exceptions set forth above apply to pre-approvals under this Section as well, except that the “total amount of revenues” calculation for this Section’s services is based on the total amount of revenues paid to the Auditor by the Registrant and any other entity that has its services approved under this Section (i.e., the Adviser or any control person). |
(e)(2) | No services included in (b)-(d) above were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. | ||
(f) | Not applicable. | ||
(g) | The aggregate fees billed for the years ended March 31, 2010 and 2009 by the Registrant’s principal accountant for non-audit services rendered to the Registrant, its investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant were $85,765 and $76,400, respectively. | ||
(h) | The Registrant’s Audit Committee has considered whether the provision of non-audit services that were rendered to the Registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant which were not pre-approved (not requiring pre-approval) is compatible with maintaining the principal accountant’s independence. |
Item 5. Audit Committee of Listed registrants.
Not applicable.
Item 6. Investments.
(a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Directors.
Item 11. Controls and Procedures.
(a) | The Chief Executive Officer, President and Treasurer have concluded that Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) and internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) provide reasonable assurances that material information relating to Registrant is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing of this report. | ||
(b) | There were no changes in Registrant’s internal control over financial reporting that occurred during the Registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Item 12. Exhibits.
(a)(1) | Code of Ethics, subject to the disclosure of Item 2 hereof- attached hereto as Exhibit 99. | ||
(a)(2) | Separate certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) are attached hereto as Exhibit 99 CERT. | ||
(a)(3) | Not applicable. | ||
(b) | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is attached hereto as Exhibit 99.906 CERT pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Pacific Life Funds | ||||
By: | /s/ Mark W. Holmlund | |||
Mark W. Holmlund | ||||
President | ||||
Date: | June 7, 2010 | |||
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Mary Ann Brown | |||
Mary Ann Brown | ||||
Chief Executive Officer | ||||
Date: | June 7, 2010 | |||
By: | /s/ Mark W. Holmlund | |||
Mark W. Holmlund | ||||
President | ||||
Date: | June 7, 2010 | |||
By: | /s/ Brian D. Klemens | |||
Brian D. Klemens | ||||
Treasurer (Principal Financial and Accounting Officer) | ||||
Date: | June 7, 2010 | |||