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
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
Newport Beach, CA 92660
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
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
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: September 30, 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 | ||||
Schedules of Investments and Notes | A-1 | |||
Financial Statements: | ||||
Statements of Assets and Liabilities | B-1 | |||
Statements of Operations | B-3 | |||
Statements of Changes in Net Assets | B-4 | |||
Financial Highlights | C-1 | |||
Notes to Financial Statements | D-1 | |||
Disclosure of Fund Expenses | E-1 | |||
Where to Go for More Information | E-3 |
PACIFIC LIFE FUNDS
PL PORTFOLIO OPTIMIZATION CONSERVATIVE FUND
Schedule of Investments
September 30, 2010 (Unaudited)
PL PORTFOLIO OPTIMIZATION CONSERVATIVE FUND
Schedule of Investments
September 30, 2010 (Unaudited)
Shares | Value | |||||||
AFFILIATED MUTUAL FUNDS — 98.3% | ||||||||
PL Floating Rate Loan Fund ‘P’ | 2,247,075 | $ | 22,156,158 | |||||
PL Inflation Managed Fund ‘P’ | 3,682,042 | 39,545,131 | ||||||
PL Managed Bond Fund ‘P’ | 8,103,855 | 90,925,257 | ||||||
PL Short Duration Bond Fund ‘P’ | 2,932,287 | 29,645,423 | ||||||
PL Comstock Fund ‘P’ | 777,763 | 8,096,509 | ||||||
PL Growth LT Fund ‘P’ * | 470,209 | 5,209,917 | ||||||
PL Large-Cap Growth Fund ‘P’ * | 645,952 | 5,038,429 | ||||||
PL Large-Cap Value Fund ‘P’ | 1,362,531 | 13,679,811 | ||||||
PL Main Street Core Fund ‘P’ | 618,087 | 5,531,874 | ||||||
PL Mid-Cap Equity Fund ‘P’ | 942,045 | 8,374,776 | ||||||
PL International Large-Cap Fund ‘P’ | 413,305 | 5,753,204 | ||||||
PL International Value Fund ‘P’ | 661,781 | 5,889,852 | ||||||
Total Affiliated Mutual Funds (Cost $221,579,498) | 239,846,341 | |||||||
SHORT-TERM INVESTMENT — 0.5% | ||||||||
Money Market Fund — 0.5% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 1,284,899 | 1,284,899 | ||||||
Total Short-Term Investment (Cost $1,284,899) | 1,284,899 | |||||||
TOTAL INVESTMENTS — 98.8% (Cost $222,864,397) | 241,131,240 | |||||||
OTHER ASSETS & LIABILITIES, NET — 1.2% | 2,862,876 | |||||||
NET ASSETS — 100.0% | $ | 243,994,116 | ||||||
Notes to Schedule of Investments
(a) As of September 30, 2010, the Fund was diversified as a percentage of net assets as follows:
Affiliated Fixed Income Funds | 74.7 | % | ||||||
Affiliated Equity Funds | 23.6 | % | ||||||
Short-Term Investment | 0.5 | % | ||||||
98.8 | % | |||||||
Other Assets & Liabilities, Net | 1.2 | % | ||||||
100.0 | % | |||||||
PACIFIC LIFE FUNDS
PL PORTFOLIO OPTIMIZATION MODERATE-CONSERVATIVE FUND
Schedule of Investments
September 30, 2010 (Unaudited)
PL PORTFOLIO OPTIMIZATION MODERATE-CONSERVATIVE FUND
Schedule of Investments
September 30, 2010 (Unaudited)
Shares | Value | |||||||
AFFILIATED MUTUAL FUNDS — 98.9% | ||||||||
PL Floating Rate Loan Fund ‘P’ | 1,494,409 | $ | 14,734,872 | |||||
PL Inflation Managed Fund ‘P’ | 2,752,009 | 29,556,576 | ||||||
PL Managed Bond Fund ‘P’ | 5,193,132 | 58,266,938 | ||||||
PL Short Duration Bond Fund ‘P’ | 2,043,701 | 20,661,813 | ||||||
PL Comstock Fund ‘P’ | 1,372,073 | 14,283,276 | ||||||
PL Growth LT Fund ‘P’ * | 639,571 | 7,086,449 | ||||||
PL Large-Cap Growth Fund ‘P’ * | 1,234,739 | 9,630,963 | ||||||
PL Large-Cap Value Fund ‘P’ | 1,895,577 | 19,031,591 | ||||||
PL Main Street Core Fund ‘P’ | 1,332,817 | 11,928,712 | ||||||
PL Mid-Cap Equity Fund ‘P’ | 1,075,992 | 9,565,573 | ||||||
PL Mid-Cap Growth Fund ‘P’ | 506,601 | 4,711,387 | ||||||
PL Small-Cap Value Fund ‘P’ | 274,662 | 2,428,015 | ||||||
PL International Large-Cap Fund ‘P’ | 879,514 | 12,242,837 | ||||||
PL International Value Fund ‘P’ | 831,904 | 7,403,949 | ||||||
Total Affiliated Mutual Funds (Cost $207,049,422) | 221,532,951 | |||||||
TOTAL INVESTMENTS — 98.9% (Cost $207,049,422) | 221,532,951 | |||||||
OTHER ASSETS & LIABILITIES, NET — 1.1% | 2,401,283 | |||||||
NET ASSETS — 100.0% | $ | 223,934,234 | ||||||
Notes to Schedule of Investments
(a) As of September 30, 2010, the Fund was diversified as a percentage of net assets as follows:
Affiliated Fixed Income Funds | 55.0 | % | ||||||
Affiliated Equity Funds | 43.9 | % | ||||||
98.9 | % | |||||||
Other Assets & Liabilities, Net | 1.1 | % | ||||||
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 September 30, 2010: |
Level 2 | Level 3 | |||||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||||
September 30, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||||
PL Portfolio Optimization Conservative Fund | ||||||||||||||||||||
Assets | Affiliated Mutual Funds | $ | 239,846,341 | $ | 239,846,341 | $ | — | $ | — | |||||||||||
Short-Term Investment | 1,284,899 | 1,284,899 | — | — | ||||||||||||||||
Total | $ | 241,131,240 | $ | 241,131,240 | $ | — | $ | — | ||||||||||||
PL Portfolio Optimization Moderate-Conservative Fund | ||||||||||||||||||||
Assets | Affiliated Mutual Funds | $ | 221,532,951 | $ | 221,532,951 | $ | — | $ | — | |||||||||||
See Notes to Financial Statements | See explanation of symbol on page A-5 |
A-1
PACIFIC LIFE FUNDS
PL PORTFOLIO OPTIMIZATION MODERATE FUND
Schedule of Investments
September 30, 2010 (Unaudited)
PL PORTFOLIO OPTIMIZATION MODERATE FUND
Schedule of Investments
September 30, 2010 (Unaudited)
Shares | Value | |||||||
AFFILIATED MUTUAL FUNDS — 99.7% | ||||||||
PL Floating Rate Loan Fund ‘P’ | 3,109,151 | $ | 30,656,231 | |||||
PL Inflation Managed Fund ‘P’ | 6,354,644 | 68,248,881 | ||||||
PL Managed Bond Fund ‘P’ | 9,277,145 | 104,089,563 | ||||||
PL Short Duration Bond Fund ‘P’ | 2,998,742 | 30,317,282 | ||||||
PL Comstock Fund ‘P’ | 4,947,096 | 51,499,270 | ||||||
PL Growth LT Fund ‘P’ * | 2,946,083 | 32,642,601 | ||||||
PL Large-Cap Growth Fund ‘P’ * | 4,305,420 | 33,582,277 | ||||||
PL Large-Cap Value Fund ‘P’ | 7,011,720 | 70,397,668 | ||||||
PL Main Street Core Fund ‘P’ | 5,062,234 | 45,306,997 | ||||||
PL Mid-Cap Equity Fund ‘P’ | 4,420,984 | 39,302,545 | ||||||
PL Mid-Cap Growth Fund ‘P’ | 1,436,018 | 13,354,971 | ||||||
PL Small-Cap Growth Fund ‘P’ * | 706,739 | 6,777,626 | ||||||
PL Small-Cap Value Fund ‘P’ | 2,200,010 | 19,448,092 | ||||||
PL Real Estate Fund ‘P’ | 1,235,622 | 12,442,709 | ||||||
PL Emerging Markets Fund ‘P’ | 1,442,438 | 19,905,648 | ||||||
PL International Large-Cap Fund ‘P’ | 2,848,889 | 39,656,538 | ||||||
PL International Value Fund ‘P’ | 2,231,549 | 19,860,785 | ||||||
Total Affiliated Mutual Funds (Cost $613,300,968) | 637,489,684 | |||||||
SHORT-TERM INVESTMENT — 0.2% | ||||||||
Money Market Fund — 0.2% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 1,237,696 | 1,237,696 | ||||||
Total Short-Term Investment (Cost $1,237,696) | 1,237,696 | |||||||
TOTAL INVESTMENTS — 99.9% (Cost $614,538,664) | 638,727,380 | |||||||
OTHER ASSETS & LIABILITIES, NET — 0.1% | 736,023 | |||||||
NET ASSETS — 100.0% | $ | 639,463,403 | ||||||
Notes to Schedule of Investments
(a) As of September 30, 2010, the Fund was diversified as a percentage of net assets as follows:
Affiliated Equity Funds | 63.2 | % | ||||||
Affiliated Fixed Income Funds | 36.5 | % | ||||||
Short-Term Investment | 0.2 | % | ||||||
99.9 | % | |||||||
Other Assets & Liabilities, Net | 0.1 | % | ||||||
100.0 | % | |||||||
PACIFIC LIFE FUNDS
PL PORTFOLIO OPTIMIZATION MODERATE-AGGRESSIVE FUND
Schedule of Investments
September 30, 2010 (Unaudited)
PL PORTFOLIO OPTIMIZATION MODERATE-AGGRESSIVE FUND
Schedule of Investments
September 30, 2010 (Unaudited)
Shares | Value | |||||||
AFFILIATED MUTUAL FUNDS — 100.0% | ||||||||
PL Inflation Managed Fund ‘P’ | 3,752,074 | $ | 40,297,276 | |||||
PL Managed Bond Fund ‘P’ | 3,556,768 | 39,906,932 | ||||||
PL Short Duration Bond Fund ‘P’ | 989,026 | 9,999,057 | ||||||
PL Comstock Fund ‘P’ | 4,513,226 | 46,982,678 | ||||||
PL Growth LT Fund ‘P’ * | 3,358,831 | 37,215,850 | ||||||
PL Large-Cap Growth Fund ‘P’ * | 3,514,027 | 27,409,410 | ||||||
PL Large-Cap Value Fund ‘P’ | 6,204,193 | 62,290,095 | ||||||
PL Main Street Core Fund ‘P’ | 5,317,177 | 47,588,738 | ||||||
PL Mid-Cap Equity Fund ‘P’ | 4,840,941 | 43,035,965 | ||||||
PL Mid-Cap Growth Fund ‘P’ | 2,385,114 | 22,181,558 | ||||||
PL Small-Cap Growth Fund ‘P’ * | 1,139,352 | 10,926,387 | ||||||
PL Small-Cap Value Fund ‘P’ | 3,002,928 | 26,545,883 | ||||||
PL Real Estate Fund ‘P’ | 1,541,674 | 15,524,653 | ||||||
PL Emerging Markets Fund ‘P’ | 1,595,507 | 22,017,998 | ||||||
PL International Large-Cap Fund ‘P’ | 3,099,854 | 43,149,971 | ||||||
PL International Value Fund ‘P’ | 3,649,717 | 32,482,485 | ||||||
Total Affiliated Mutual Funds (Cost $518,628,917) | 527,554,936 | |||||||
SHORT-TERM INVESTMENT — 0.0% | ||||||||
Money Market Fund — 0.0% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 56,462 | 56,462 | ||||||
Total Short-Term Investment (Cost $56,462) | 56,462 | |||||||
TOTAL INVESTMENTS — 100.0% (Cost $518,685,379) | 527,611,398 | |||||||
OTHER ASSETS & LIABILITIES, NET — 0.0% | 234,595 | |||||||
NET ASSETS — 100.0% | $ | 527,845,993 | ||||||
Notes to Schedule of Investments
(a) As of September 30, 2010, the Fund was diversified as a percentage of net assets as follows:
Affiliated Equity Funds | 82.9 | % | ||||||
Affiliated Fixed Income Funds | 17.1 | % | ||||||
Short-Term Investment | 0.0 | % | ||||||
100.0 | % | |||||||
Other Assets & Liabilities, Net | 0.0 | % | ||||||
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 September 30, 2010: |
Level 2 | Level 3 | |||||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||||
September 30, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||||
PL Portfolio Optimization Moderate Fund | ||||||||||||||||||||
Assets | Affiliated Mutual Funds | $ | 637,489,684 | $ | 637,489,684 | $ | — | $ | — | |||||||||||
Short-Term Investment | 1,237,696 | 1,237,696 | — | — | ||||||||||||||||
Total | $ | 638,727,380 | $ | 638,727,380 | $ | — | $ | — | ||||||||||||
PL Portfolio Optimization Moderate-Aggressive Fund | ||||||||||||||||||||
Assets | Affiliated Mutual Funds | $ | 527,554,936 | $ | 527,554,936 | $ | — | $ | — | |||||||||||
Short-Term Investment | 56,462 | 56,462 | — | — | ||||||||||||||||
Total | $ | 527,611,398 | $ | 527,611,398 | $ | — | $ | — | ||||||||||||
See Notes to Financial Statements | See explanation of symbol on page A-5 |
A-2
PACIFIC LIFE FUNDS
PL PORTFOLIO OPTIMIZATION AGGRESSIVE FUND
Schedule of Investments
September 30, 2010 (Unaudited)
PL PORTFOLIO OPTIMIZATION AGGRESSIVE FUND
Schedule of Investments
September 30, 2010 (Unaudited)
Shares | Value | |||||||
AFFILIATED MUTUAL FUNDS — 100.1% | ||||||||
PL Managed Bond Fund ‘P’ | 452,369 | $ | 5,075,579 | |||||
PL Comstock Fund ‘P’ | 1,790,785 | 18,642,068 | ||||||
PL Growth LT Fund ‘P’ * | 1,515,097 | 16,787,271 | ||||||
PL Large-Cap Growth Fund ‘P’ * | 1,383,505 | 10,791,338 | ||||||
PL Large-Cap Value Fund ‘P’ | 2,461,503 | 24,713,490 | ||||||
PL Main Street Core Fund ‘P’ | 2,558,515 | 22,898,712 | ||||||
PL Mid-Cap Equity Fund ‘P’ | 1,875,524 | 16,673,406 | ||||||
PL Mid-Cap Growth Fund ‘P’ | 1,329,055 | 12,360,212 | ||||||
PL Small-Cap Growth Fund ‘P’ * | 1,137,779 | 10,911,302 | ||||||
PL Small-Cap Value Fund ‘P’ | 1,646,059 | 14,551,162 | ||||||
PL Real Estate Fund ‘P’ | 796,678 | 8,022,545 | ||||||
PL Emerging Markets Fund ‘P’ | 774,688 | 10,690,701 | ||||||
PL International Large-Cap Fund ‘P’ | 1,375,574 | 19,147,989 | ||||||
PL International Value Fund ‘P’ | 1,915,661 | 17,049,387 | ||||||
Total Affiliated Mutual Funds (Cost $199,033,436) | 208,315,162 | |||||||
TOTAL INVESTMENTS — 100.1% (Cost $199,033,436) | 208,315,162 | |||||||
OTHER ASSETS & LIABILITIES, NET — (0.1%) | (258,339 | ) | ||||||
NET ASSETS — 100.0% | $ | 208,056,823 | ||||||
Notes to Schedule of Investments
(a) As of September 30, 2010, the Fund was diversified as a percentage of net assets as follows:
Affiliated Equity Funds | 97.7 | % | ||||||
Affiliated Fixed Income Funds | 2.4 | % | ||||||
100.1 | % | |||||||
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 September 30, 2010: |
Level 2 | Level 3 | |||||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||||
September 30, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||||
Assets | Affiliated Mutual Funds | $ | 208,315,162 | $ | 208,315,162 | $ | — | $ | — | |||||||||||
See Notes to Financial Statements | See explanation of symbol on page A-5 |
A-3
PACIFIC LIFE FUNDS
PL MONEY MARKET FUND
Schedule of Investments
September 30, 2010 (Unaudited)
PL MONEY MARKET FUND
Schedule of Investments
September 30, 2010 (Unaudited)
Principal | ||||||||
Amount | Value | |||||||
SHORT-TERM INVESTMENTS — 101.7% | ||||||||
Certificates of Deposit — 6.9% | ||||||||
Bank of Tokyo-Mitsubishi UFJ Ltd NY | ||||||||
0.380% due 10/29/10 | $ | 900,000 | $ | 900,000 | ||||
0.380% due 11/01/10 | 1,500,000 | 1,500,103 | ||||||
Toronto Dominion Bank NY | ||||||||
0.400% due 10/25/10 | 1,500,000 | 1,500,000 | ||||||
3,900,103 | ||||||||
Commercial Paper — 75.3% | ||||||||
Abbott Laboratories | ||||||||
0.150% due 10/12/10 | 1,700,000 | 1,699,922 | ||||||
American Honda Finance Corp | ||||||||
0.400% due 11/16/10 | 350,000 | 349,822 | ||||||
Archer-Daniels Midland Co | ||||||||
0.200% due 10/28/10 | 650,000 | 649,903 | ||||||
0.210% due 10/13/10 | 2,100,000 | 2,099,853 | ||||||
Bank of Montreal (Canada) | ||||||||
0.220% due 11/16/10 | 2,500,000 | 2,499,297 | ||||||
Bank of Nova Scotia NY | ||||||||
0.405% due 01/19/11 | 500,000 | 499,381 | ||||||
ConocoPhillips Qatar Funding Ltd (Cayman) | ||||||||
0.230% due 11/17/10 | 500,000 | 499,850 | ||||||
0.250% due 11/12/10 | 1,700,000 | 1,699,504 | ||||||
0.260% due 10/08/10 | 500,000 | 499,975 | ||||||
Electricite de France SA (France) | ||||||||
0.230% due 10/08/10 | 800,000 | 799,964 | ||||||
0.270% due 11/22/10 | 2,000,000 | 1,999,220 | ||||||
ENI Finance USA Inc | ||||||||
0.230% due 10/01/10 | 2,500,000 | 2,500,000 | ||||||
Google Inc | ||||||||
0.200% due 12/20/10 | 1,500,000 | 1,499,333 | ||||||
Harvard University | ||||||||
0.250% due 12/06/10 | 2,000,000 | 1,999,083 | ||||||
Hewlett-Packard Co | ||||||||
0.180% due 10/05/10 | 2,600,000 | 2,599,948 | ||||||
International Business Machines Corp | ||||||||
0.150% due 10/01/10 | 1,500,000 | 1,500,000 | ||||||
National Australia Funding DE Inc | ||||||||
0.255% due 11/08/10 | 2,400,000 | 2,399,354 | ||||||
Net Jets Inc | ||||||||
0.190% due 10/07/10 | 2,000,000 | 1,999,937 | ||||||
Northwestern University | ||||||||
0.240% due 10/25/10 | 1,500,000 | 1,499,760 | ||||||
0.270% due 10/04/10 | 750,000 | 749,983 | ||||||
The Coca-Cola Co | ||||||||
0.240% due 11/22/10 | 1,700,000 | 1,699,411 | ||||||
The Procter & Gamble Co | ||||||||
0.230% due 10/21/10 | 500,000 | 499,936 | ||||||
0.270% due 11/17/10 | 500,000 | 499,824 | ||||||
0.270% due 11/24/10 | 500,000 | 499,798 | ||||||
Total Capital Canada Ltd (Canada) | ||||||||
0.430% due 01/13/11 | 500,000 | 499,379 | ||||||
Toyota Motor Credit Corp | ||||||||
0.310% due 12/17/10 | 2,250,000 | 2,248,560 | ||||||
0.420% due 10/18/10 | 750,000 | 749,851 | ||||||
Wal-Mart Stores Inc | ||||||||
0.200% due 10/13/10 | 2,200,000 | 2,199,853 | ||||||
Washington Gas Light Co | ||||||||
0.190% due 10/04/10 | 1,500,000 | 1,499,976 | ||||||
Westpac Banking Corp (Australia) | ||||||||
0.250% due 11/10/10 | 2,200,000 | 2,199,388 | ||||||
42,640,065 | ||||||||
U.S. Treasury Bills — 19.4% | ||||||||
0.121% due 11/18/10 | 2,000,000 | 1,999,679 | ||||||
0.130% due 11/04/10 | 2,000,000 | 1,999,759 | ||||||
0.151% due 12/16/10 | 2,000,000 | 1,999,362 | ||||||
0.155% due 12/30/10 | 2,000,000 | 1,999,225 | ||||||
0.221% due 10/14/10 | 1,500,000 | 1,499,880 | ||||||
0.238% due 10/28/10 | 1,500,000 | 1,499,733 | ||||||
10,997,638 | ||||||||
Shares | ||||||||
Money Market Fund — 0.1% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 42,335 | 42,335 | ||||||
Total Short-Term Investments (Amortized Cost $57,580,141) | 57,580,141 | |||||||
TOTAL INVESTMENTS — 101.7% (Amortized Cost $57,580,141) | 57,580,141 | |||||||
OTHER ASSETS & LIABILITIES, NET — (1.7%) | (963,998 | ) | ||||||
NET ASSETS — 100.0% | $ | 56,616,143 | ||||||
Notes to Schedule of Investments | ||
(a) | As of September 30, 2010, the Fund was diversified as a percentage of net assets as follows: |
Commercial Paper | 75.3 | % | ||
U.S. Treasury Bills | 19.4 | % | ||
Certificates of Deposit | 6.9 | % | ||
Money Market Fund | 0.1 | % | ||
101.7 | % | |||
Other Assets & Liabilities, Net | (1.7 | %) | ||
100.0 | % | |||
(b) | As of September 30, 2010, the Fund’s Standard & Poor’s quality ratings as a percentage of total fixed income investments were as follows: |
AAA / U.S. Government & Agency Issues | 19.1 | % | ||
A-1 (Short Term Debt Only) | 74.1 | % | ||
Not Rated | 6.8 | % | ||
100.0 | % | |||
The 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. | ||
(c) | Short-term securities reflect either the stated coupon rate or the annualized effective yield on the date of purchase for discounted securities. |
See Notes to Financial Statements | See explanation of symbol on page A-5 |
A-4
PACIFIC LIFE FUNDS
PL MONEY MARKET FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL MONEY MARKET FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
(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 September 30, 2010: |
Level 2 | Level 3 | |||||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||||
September 30, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||||
Assets | Short-Term Investments | $ | 57,580,141 | $ | 42,335 | $ | 57,537,806 | $ | — | |||||||||||
Explanation of Symbol: | ||
* | Non-income producing securities. |
See Notes to Financial Statements |
A-5
PL Portfolio Optimization Funds | PL Money | |||||||||||||||||||||||
Moderate- | Moderate- | Market | ||||||||||||||||||||||
Conservative Fund | Conservative Fund | Moderate Fund | Aggressive Fund | Aggressive Fund | Fund | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Investments, at cost | $ | 222,864,397 | $ | 207,049,422 | $ | 614,538,664 | $ | 518,685,379 | $ | 199,033,436 | $ | 57,580,141 | ||||||||||||
Investments in affiliated mutual funds, at value | $ | 239,846,341 | $ | 221,532,951 | $ | 637,489,684 | $ | 527,554,936 | $ | 208,315,162 | $ | — | ||||||||||||
Investments, at value | 1,284,899 | — | 1,237,696 | 56,462 | — | 57,580,141 | ||||||||||||||||||
Receivables: | ||||||||||||||||||||||||
Dividends and interest | — | — | — | — | — | 3,256 | ||||||||||||||||||
Fund shares sold | 4,511,872 | 2,776,608 | 3,612,863 | 2,079,627 | 425,310 | 3,253 | ||||||||||||||||||
Securities sold | — | 98,997 | — | — | 118,899 | — | ||||||||||||||||||
Due from adviser | 25,001 | 25,287 | 67,636 | 59,730 | 26,829 | 8,077 | ||||||||||||||||||
Prepaid expenses and other assets | 17,928 | 9,576 | 27,609 | 18,624 | 10,554 | 9,407 | ||||||||||||||||||
Total Assets | 245,686,041 | 224,443,419 | 642,435,488 | 529,769,379 | 208,896,754 | 57,604,134 | ||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||
Fund shares redeemed | 250,445 | 255,933 | 1,278,200 | 1,469,714 | 560,648 | 969,550 | ||||||||||||||||||
Securities purchased | 1,284,899 | — | 1,237,696 | 56,462 | — | — | ||||||||||||||||||
Due to custodian | — | 98,997 | — | — | 118,899 | — | ||||||||||||||||||
Income distributions | 50 | 75 | — | — | — | — | ||||||||||||||||||
Accrued advisory fees | 38,770 | 35,119 | 101,705 | 84,733 | 33,269 | — | ||||||||||||||||||
Accrued administration fees | 29,077 | 26,339 | 76,279 | 63,549 | 24,952 | 5 | ||||||||||||||||||
Accrued support service expenses | 22,344 | 23,170 | 70,781 | 63,038 | 25,352 | 2,614 | ||||||||||||||||||
Accrued custodian fees and expenses | 2,564 | 2,564 | 2,564 | 2,564 | 2,564 | 4,103 | ||||||||||||||||||
Accrued legal, audit and tax service fees | 26,434 | 27,996 | 86,470 | 77,439 | 31,348 | 951 | ||||||||||||||||||
Accrued deferred trustee compensation and expenses | 1,071 | 1,677 | 5,446 | 5,155 | 1,995 | 3,784 | ||||||||||||||||||
Accrued distribution and/or service fees | 16,674 | 15,109 | 44,326 | 37,082 | 13,831 | 1,522 | ||||||||||||||||||
Accrued transfer agency out-of-pocket expenses | 15,976 | 18,007 | 58,339 | 53,822 | 22,233 | 3,650 | ||||||||||||||||||
Accrued other | 3,621 | 4,199 | 10,279 | 9,828 | 4,840 | 1,812 | ||||||||||||||||||
Total Liabilities | 1,691,925 | 509,185 | 2,972,085 | 1,923,386 | 839,931 | 987,991 | ||||||||||||||||||
NET ASSETS | $ | 243,994,116 | $ | 223,934,234 | $ | 639,463,403 | $ | 527,845,993 | $ | 208,056,823 | $ | 56,616,143 | ||||||||||||
See Notes to Financial Statements
B-1
PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
SEPTEMBER 30, 2010 (Unaudited)
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
SEPTEMBER 30, 2010 (Unaudited)
PL Portfolio Optimization Funds | PL Money | |||||||||||||||||||||||
Moderate- | Moderate- | Market | ||||||||||||||||||||||
Conservative Fund | Conservative Fund | Moderate Fund | Aggressive Fund | Aggressive Fund | Fund(1) | |||||||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||||||||||
Paid-in capital | $ | 230,443,075 | $ | 218,977,728 | $ | 647,108,845 | $ | 565,860,728 | $ | 236,781,957 | $ | 56,619,660 | ||||||||||||
Undistributed/accumulated net investment income (loss) | 601,202 | 414,000 | 545,055 | (248,178 | ) | (264,340 | ) | (3,690 | ) | |||||||||||||||
Undistributed/accumulated net realized gain (loss) | (5,317,004 | ) | (9,941,023 | ) | (32,379,213 | ) | (46,692,576 | ) | (37,742,520 | ) | 173 | |||||||||||||
Net unrealized appreciation (depreciation) on investments | 18,266,843 | 14,483,529 | 24,188,716 | 8,926,019 | 9,281,726 | — | ||||||||||||||||||
NET ASSETS | $ | 243,994,116 | $ | 223,934,234 | $ | 639,463,403 | $ | 527,845,993 | $ | 208,056,823 | $ | 56,616,143 | ||||||||||||
Class A Shares: | ||||||||||||||||||||||||
Net Assets | $ | 113,892,834 | $ | 105,829,874 | $ | 293,720,716 | $ | 244,188,035 | $ | 106,601,377 | $ | 56,616,143 | ||||||||||||
Shares of beneficial interest outstanding | 10,583,330 | 9,842,495 | 26,756,407 | 22,595,737 | 9,935,154 | 56,626,948 | ||||||||||||||||||
Net Asset Value per share* | $ | 10.76 | $ | 10.75 | $ | 10.98 | $ | 10.81 | $ | 10.73 | $ | 1.00 | ||||||||||||
Sales Charge — Maximum is 5.50% of offering price | 0.63 | 0.63 | 0.64 | 0.63 | 0.62 | — | ||||||||||||||||||
Maximum offering price per share | $ | 11.39 | $ | 11.38 | $ | 11.62 | $ | 11.44 | $ | 11.35 | $ | 1.00 | ||||||||||||
Class B Shares: | ||||||||||||||||||||||||
Net Assets | $ | 19,144,541 | $ | 23,170,371 | $ | 74,018,103 | $ | 71,083,329 | $ | 28,904,387 | $ | — | ||||||||||||
Shares of beneficial interest outstanding | 1,795,727 | 2,173,725 | 6,801,091 | 6,658,096 | 2,748,164 | — | ||||||||||||||||||
Net Asset Value and offering price per share* | $ | 10.66 | $ | 10.66 | $ | 10.88 | $ | 10.68 | $ | 10.52 | $ | — | ||||||||||||
Class C Shares: | ||||||||||||||||||||||||
Net Assets | $ | 102,254,194 | $ | 83,469,103 | $ | 244,674,542 | $ | 199,362,199 | $ | 67,716,407 | $ | — | ||||||||||||
Shares of beneficial interest outstanding | 9,599,872 | 7,833,433 | 22,512,680 | 18,719,356 | 6,438,345 | — | ||||||||||||||||||
Net Asset Value and offering price per share* | $ | 10.65 | $ | 10.66 | $ | 10.87 | $ | 10.65 | $ | 10.52 | $ | — | ||||||||||||
Class R Shares: | ||||||||||||||||||||||||
Net Assets | $ | 8,702,547 | $ | 11,464,886 | $ | 27,050,042 | $ | 13,212,430 | $ | 4,834,652 | $ | — | ||||||||||||
Shares of beneficial interest outstanding | 811,915 | 1,069,702 | 2,474,694 | 1,225,013 | 453,005 | — | ||||||||||||||||||
Net Asset Value per share | $ | 10.72 | $ | 10.72 | $ | 10.93 | $ | 10.79 | $ | 10.67 | $ | — | ||||||||||||
* | Redemption price per share is equal to the Net Asset Value per share less any applicable contingent deferred sales charge. | |
(1) | PL Money Market Fund is not subject to a front-end sales load. |
See Notes to Financial Statements
B-2
PACIFIC LIFE FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2010 (Unaudited)
STATEMENTS OF OPERATIONS
FOR THE SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2010 (Unaudited)
PL Portfolio Optimization Funds | PL Money | |||||||||||||||||||||||
Moderate- | Moderate- | Market | ||||||||||||||||||||||
Conservative Fund | Conservative Fund | Moderate Fund | Aggressive Fund | Aggressive Fund | Fund | |||||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||||||
Dividends from affiliated mutual fund investments | $ | 1,413,695 | $ | 1,181,574 | $ | 2,859,541 | $ | 1,741,008 | $ | 489,493 | $ | — | ||||||||||||
Dividends from mutual fund investments | 5 | 3 | 128 | 3 | — | — | ||||||||||||||||||
Interest | — | — | — | — | — | 59,722 | ||||||||||||||||||
Total Investment Income | 1,413,700 | 1,181,577 | 2,859,669 | 1,741,011 | 489,493 | 59,722 | ||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||
Advisory fees | 200,705 | 193,706 | 581,296 | 499,020 | 197,334 | 44,395 | ||||||||||||||||||
Administration fees | 216,457 | 213,336 | 646,377 | 559,074 | 221,614 | 66,592 | ||||||||||||||||||
Support services expenses | 28,149 | 29,469 | 90,787 | 80,157 | 32,379 | 6,367 | ||||||||||||||||||
Custodian fees and expenses | 5,114 | 5,114 | 5,114 | 5,114 | 5,114 | 9,455 | ||||||||||||||||||
Shareholder report expenses | 10,198 | 10,673 | 32,881 | 29,030 | 11,725 | 2,306 | ||||||||||||||||||
Distribution and/or service fees | ||||||||||||||||||||||||
Class A | 115,520 | 110,927 | 330,109 | 286,767 | 124,073 | 55,493 | ||||||||||||||||||
Class B (1) | 77,768 | 102,355 | 340,440 | 338,976 | 140,989 | — | ||||||||||||||||||
Class C (1) | 422,236 | 368,211 | 1,120,541 | 947,625 | 326,540 | — | ||||||||||||||||||
Class R (1) | 20,722 | 27,128 | 62,531 | 30,717 | 11,424 | — | ||||||||||||||||||
Transfer agency out-of-pocket expenses | 34,397 | 38,874 | 126,427 | 117,910 | 47,499 | 6,839 | ||||||||||||||||||
Registration fees | 31,318 | 29,891 | 39,671 | 35,510 | 30,065 | 14,429 | ||||||||||||||||||
Legal, audit and tax service fees | 24,634 | 25,790 | 79,453 | 70,150 | 28,337 | 5,573 | ||||||||||||||||||
Trustees’ compensation and expenses | 3,895 | 4,100 | 12,605 | 11,106 | 4,475 | 959 | ||||||||||||||||||
Other | 9,692 | 10,424 | 29,921 | 27,478 | 11,836 | 5,655 | ||||||||||||||||||
Total Expenses | 1,200,805 | 1,169,998 | 3,498,153 | 3,038,634 | 1,193,404 | 218,063 | ||||||||||||||||||
Advisory Fee Waiver | — | — | — | — | — | (44,395 | ) | |||||||||||||||||
Adviser Reimbursement and/or Administrator Fee Reduction (2) | (279,254 | ) | (290,448 | ) | (837,669 | ) | (746,072 | ) | (318,656 | ) | (113,015 | ) | ||||||||||||
Distribution and/or Service Fees Waiver | (109,880 | ) | (113,427 | ) | (350,675 | ) | (308,014 | ) | (122,688 | ) | (906 | ) | ||||||||||||
Net Expenses | 811,671 | 766,123 | 2,309,809 | 1,984,548 | 752,060 | 59,747 | ||||||||||||||||||
NET INVESTMENT INCOME (LOSS) | 602,029 | 415,454 | 549,860 | (243,537 | ) | (262,567 | ) | (25 | ) | |||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||||||
Net Realized Gain (Loss) On: | ||||||||||||||||||||||||
Affiliated mutual fund investment transactions | (274,522 | ) | (1,694,072 | ) | (7,668,289 | ) | (7,187,872 | ) | (4,799,381 | ) | — | |||||||||||||
Investment security transactions | 112 | 111 | 335 | 291 | 116 | 25 | ||||||||||||||||||
Capital gain distributions from affiliated mutual fund investments | 691,498 | 519,655 | 1,045,552 | 581,480 | 170,410 | — | ||||||||||||||||||
Net Realized Gain (Loss) | 417,088 | (1,174,306 | ) | (6,622,402 | ) | (6,606,101 | ) | (4,628,855 | ) | 25 | ||||||||||||||
Net Change In Unrealized Appreciation (Depreciation) On: | ||||||||||||||||||||||||
Affiliated mutual fund investments | 7,433,307 | 6,910,800 | 20,638,993 | 15,963,843 | 7,297,682 | — | ||||||||||||||||||
Change in Net Unrealized Appreciation (Depreciation) | 7,433,307 | 6,910,800 | 20,638,993 | 15,963,843 | 7,297,682 | — | ||||||||||||||||||
NET GAIN | 7,850,395 | 5,736,494 | 14,016,591 | 9,357,742 | 2,668,827 | 25 | ||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 8,452,424 | $ | 6,151,948 | $ | 14,566,451 | $ | 9,114,205 | $ | 2,406,260 | $ | — | ||||||||||||
(1) | Class B, C and R shares are offered to the PL Portfolio Optimization Funds only. | |
(2) | See Note 5 in Notes to Financial Statements. |
See Notes to Financial Statements
B-3
PL Portfolio Optimization | PL Portfolio Optimization | PL Portfolio Optimization | ||||||||||||||||||||||
Conservative Fund | Moderate-Conservative Fund | Moderate Fund | ||||||||||||||||||||||
Six-Month | Six-Month | Six-Month | ||||||||||||||||||||||
Period Ended | Period Ended | Period Ended | ||||||||||||||||||||||
September 30, | Year Ended | September 30, | Year Ended | September 30, | Year Ended | |||||||||||||||||||
2010 (1) | March 31, 2010 | 2010 (1) | March 31, 2010 | 2010 (1) | March 31, 2010 | |||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||
Net investment income | $ | 602,029 | $ | 3,277,105 | $ | 415,454 | $ | 2,947,406 | $ | 549,860 | $ | 6,898,619 | ||||||||||||
Net realized gain (loss) | 417,088 | (2,367,128 | ) | (1,174,306 | ) | (4,826,492 | ) | (6,622,402 | ) | (16,496,114 | ) | |||||||||||||
Net change in unrealized appreciation | 7,433,307 | 19,660,083 | 6,910,800 | 33,278,746 | 20,638,993 | 138,905,984 | ||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | 8,452,424 | 20,570,060 | 6,151,948 | 31,399,660 | 14,566,451 | 129,308,489 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||
Class A | (432,249 | ) | (1,710,474 | ) | (752,728 | ) | (1,614,143 | ) | (2,280,647 | ) | (4,160,973 | ) | ||||||||||||
Class B | (45,061 | ) | (279,755 | ) | (138,215 | ) | (339,598 | ) | (478,154 | ) | (831,429 | ) | ||||||||||||
Class C | (270,234 | ) | (1,401,774 | ) | (519,484 | ) | (1,145,058 | ) | (1,587,337 | ) | (2,524,685 | ) | ||||||||||||
Class R | (32,188 | ) | (191,258 | ) | (88,835 | ) | (225,209 | ) | (201,576 | ) | (401,521 | ) | ||||||||||||
Net realized gains | ||||||||||||||||||||||||
Class A | — | (106,162 | ) | — | — | — | — | |||||||||||||||||
Class B | — | (23,898 | ) | — | — | — | — | |||||||||||||||||
Class C | — | (117,264 | ) | — | — | — | — | |||||||||||||||||
Class R | — | (12,184 | ) | — | — | — | — | |||||||||||||||||
Net Decrease in Net Assets Resulting from Dividends and Distributions to Shareholders | (779,732 | ) | (3,842,769 | ) | (1,499,262 | ) | (3,324,008 | ) | (4,547,714 | ) | (7,918,608 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||
Class A | 64,346,824 | 50,752,914 | 37,161,238 | 40,790,178 | 70,135,938 | 93,246,975 | ||||||||||||||||||
Class B | 6,706,657 | 5,817,970 | 5,522,470 | 6,690,345 | 12,692,890 | 16,242,994 | ||||||||||||||||||
Class C | 48,677,488 | 45,745,410 | 24,711,117 | 25,952,657 | 52,781,460 | 75,334,134 | ||||||||||||||||||
Class R | 1,385,569 | 5,594,582 | 2,793,764 | 6,560,716 | 6,001,833 | 13,380,310 | ||||||||||||||||||
Dividends and distribution reinvestments | ||||||||||||||||||||||||
Class A | 330,177 | 1,558,693 | 689,211 | 1,498,188 | 2,096,070 | 3,842,035 | ||||||||||||||||||
Class B | 41,075 | 280,171 | 129,816 | 318,466 | 455,357 | 790,075 | ||||||||||||||||||
Class C | 233,144 | 1,341,548 | 462,040 | 1,045,210 | 1,450,149 | 2,369,247 | ||||||||||||||||||
Class R | 32,105 | 202,846 | 88,835 | 225,209 | 201,194 | 400,842 | ||||||||||||||||||
Cost of shares repurchased | ||||||||||||||||||||||||
Class A | (23,435,796 | ) | (23,064,174 | ) | (12,520,006 | ) | (15,266,919 | ) | (30,714,122 | ) | (40,358,953 | ) | ||||||||||||
Class B | (1,508,007 | ) | (2,677,685 | ) | (2,113,154 | ) | (3,115,431 | ) | (5,535,081 | ) | (7,808,728 | ) | ||||||||||||
Class C | (17,390,277 | ) | (24,597,878 | ) | (8,461,230 | ) | (14,008,363 | ) | (24,014,433 | ) | (37,125,941 | ) | ||||||||||||
Class R | (963,130 | ) | (1,796,648 | ) | (2,108,249 | ) | (2,898,487 | ) | (3,777,141 | ) | (7,339,654 | ) | ||||||||||||
Net Increase in Net Assets from Capital Share Transactions | 78,455,829 | 59,157,749 | 46,355,852 | 47,791,769 | 81,774,114 | 112,973,336 | ||||||||||||||||||
NET INCREASE IN NET ASSETS | 86,128,521 | 75,885,040 | 51,008,538 | 75,867,421 | 91,792,851 | 234,363,217 | ||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||
Beginning of Year or Period | 157,865,595 | 81,980,555 | 172,925,696 | 97,058,275 | 547,670,552 | 313,307,335 | ||||||||||||||||||
End of Year or Period | $ | 243,994,116 | $ | 157,865,595 | $ | 223,934,234 | $ | 172,925,696 | $ | 639,463,403 | $ | 547,670,552 | ||||||||||||
Undistributed Net Investment Income | $ | 601,202 | $ | 778,905 | $ | 414,000 | $ | 1,497,808 | $ | 545,055 | $ | 4,542,909 | ||||||||||||
(1) | Unaudited. |
See Notes to Financial Statements
B-4
PACIFIC LIFE FUNDS STATEMENTS OF CHANGES IN NET ASSETS (Continued) |
PL Portfolio Optimization | PL Portfolio Optimization | PL Money Market | ||||||||||||||||||||||
Moderate-Aggressive Fund | Aggressive Fund | Fund | ||||||||||||||||||||||
Six-Month | Six-Month | Six-Month | ||||||||||||||||||||||
Period Ended | Period Ended | Period Ended | ||||||||||||||||||||||
September 30, | Year Ended | September 30, | Year Ended | September 30, | Year Ended | |||||||||||||||||||
2010 (1) | March 31, 2010 | 2010 (1) | March 31, 2010 | 2010 (1) | March 31, 2010 | |||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||
Net investment income (loss) | $ | (243,537 | ) | $ | 3,841,042 | $ | (262,567 | ) | $ | 982,773 | $ | (25 | ) | $ | (173 | ) | ||||||||
Net realized gain (loss) | (6,606,101 | ) | (30,603,203 | ) | (4,628,855 | ) | (24,928,333 | ) | 25 | 201 | ||||||||||||||
Net change in unrealized appreciation (depreciation) | 15,963,843 | 175,714,887 | 7,297,682 | 94,510,444 | — | — | ||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 9,114,205 | 148,952,726 | 2,406,260 | 70,564,884 | — | 28 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||
Class A | (1,602,175 | ) | (2,602,301 | ) | (653,565 | ) | (843,794 | ) | — | (10,057 | ) | |||||||||||||
Class B | (355,000 | ) | (446,128 | ) | (139,088 | ) | (69,556 | ) | — | — | ||||||||||||||
Class C | (1,010,867 | ) | (1,189,157 | ) | (314,227 | ) | (153,091 | ) | — | — | ||||||||||||||
Class R | (78,864 | ) | (138,865 | ) | (27,172 | ) | (40,677 | ) | — | — | ||||||||||||||
Net Decrease in Net Assets Resulting from Dividends and Distributions to Shareholders | (3,046,906 | ) | (4,376,451 | ) | (1,134,052 | ) | (1,107,118 | ) | — | (10,057 | ) | |||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||
Class A | 42,067,289 | 65,603,064 | 16,948,846 | 27,309,375 | 59,766,177 | 52,775,972 | ||||||||||||||||||
Class B | 8,464,083 | 11,566,216 | 2,567,076 | 4,468,034 | — | — | ||||||||||||||||||
Class C | 28,066,332 | 44,834,816 | 13,792,109 | 19,255,411 | — | — | ||||||||||||||||||
Class R | 2,441,614 | 10,113,346 | 1,064,123 | 3,407,327 | — | — | ||||||||||||||||||
Dividends and distribution reinvestments | ||||||||||||||||||||||||
Class A | 1,497,191 | 2,456,310 | 628,092 | 807,649 | — | 9,957 | ||||||||||||||||||
Class B | 342,767 | 430,112 | 133,256 | 66,789 | — | — | ||||||||||||||||||
Class C | 942,974 | 1,134,414 | 294,024 | 147,013 | — | — | ||||||||||||||||||
Class R | 78,864 | 138,865 | 27,172 | 40,677 | — | — | ||||||||||||||||||
Cost of shares repurchased | ||||||||||||||||||||||||
Class A | (27,794,474 | ) | (35,242,574 | ) | (10,597,700 | ) | (22,695,126 | ) | (37,818,958 | ) | (73,530,933 | ) | ||||||||||||
Class B | (7,178,951 | ) | (7,692,928 | ) | (2,698,047 | ) | (3,834,070 | ) | — | — | ||||||||||||||
Class C | (21,598,599 | ) | (30,185,514 | ) | (14,759,289 | ) | (19,134,707 | ) | — | — | ||||||||||||||
Class R | (1,665,137 | ) | (7,037,738 | ) | (737,800 | ) | (2,846,769 | ) | — | — | ||||||||||||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | 25,663,953 | 56,118,389 | 6,661,862 | 6,991,603 | 21,947,219 | (20,745,004 | ) | |||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | 31,731,252 | 200,694,664 | 7,934,070 | 76,449,369 | 21,947,219 | (20,755,033 | ) | |||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||
Beginning of Year or Period | 496,114,741 | 295,420,077 | 200,122,753 | 123,673,384 | 34,668,924 | 55,423,957 | ||||||||||||||||||
End of Year or Period | $ | 527,845,993 | $ | 496,114,741 | $ | 208,056,823 | $ | 200,122,753 | $ | 56,616,143 | $ | 34,668,924 | ||||||||||||
Undistributed/Accumulated Net Investment Income (Loss) | $ | (248,178 | ) | $ | 3,042,265 | $ | (264,340 | ) | $ | 1,132,279 | $ | (3,690 | ) | $ | (3,665 | ) | ||||||||
(1) | Unaudited. |
See Notes to Financial Statements
B-5
PACIFIC LIFE FUNDS
FINANCIAL HIGHLIGHTS
Selected per share, ratios and supplemental data for each year or period were as follows:
FINANCIAL HIGHLIGHTS
Selected per share, ratios and supplemental data for each year or period were as follows:
Investment Activities | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios of | Ratios of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | Net Assets, | Expenses After | Expenses Before | Ratios of Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, | Net Realized | Total from | from Net | Distributions | Net Asset Value, | End of | Expense Reductions | Expense Reductions | Investment Income | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of | Net Investment | and Unrealized | Investment | Investment | from | Total | End of | Total | Year or Period | to Average Net | to Average Net | to Average Net | Turnover | |||||||||||||||||||||||||||||||||||||||||||||
For each Year or Period | Year or Period | Income (1) | Gain (Loss) | Operations | Income | Capital Gains | Distributions | Year or Period | Returns (2) | (in thousands) | Assets (3), (4) | Assets (4) | Assets (4) | Rates | ||||||||||||||||||||||||||||||||||||||||||||
PL Portfolio Optimization Conservative Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2010 - 9/30/2010 (5) | $ | 10.41 | $ | 0.05 | $ | 0.35 | $ | 0.40 | $ | (0.05 | ) | $ | — | $ | (0.05 | ) | $ | 10.76 | 3.83 | % | $ | 113,893 | 0.43 | % | 0.81 | % | 0.98 | % | 10.78 | % | |||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 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 | 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 | 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 | 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 | 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: | 4/1/2010 - 9/30/2010 (5) | $ | 10.34 | $ | 0.01 | $ | 0.34 | $ | 0.35 | $ | (0.03 | ) | $ | — | $ | (0.03 | ) | $ | 10.66 | 3.40 | % | $ | 19,145 | 1.17 | % | 1.56 | % | 0.24 | % | 10.78 | % | |||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 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 | 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 | 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 | 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 | 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: | 4/1/2010 - 9/30/2010 (5) | $ | 10.33 | $ | 0.01 | $ | 0.34 | $ | 0.35 | $ | (0.03 | ) | $ | — | $ | (0.03 | ) | $ | 10.65 | 3.42 | % | $ | 102,254 | 1.17 | % | 1.56 | % | 0.24 | % | 10.78 | % | |||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 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 | 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 | 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 | 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 | 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: | 4/1/2010 - 9/30/2010 (5) | $ | 10.38 | $ | 0.04 | $ | 0.34 | $ | 0.38 | $ | (0.04 | ) | $ | — | $ | (0.04 | ) | $ | 10.72 | 3.68 | % | $ | 8,703 | 0.66 | % | 1.06 | % | 0.75 | % | 10.78 | % | |||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 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 | 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 | 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 | 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 | 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: | 4/1/2010 - 9/30/2010 (5) | $ | 10.54 | $ | 0.04 | $ | 0.26 | $ | 0.30 | $ | (0.09 | ) | $ | — | $ | (0.09 | ) | $ | 10.75 | 2.89 | % | $ | 105,830 | 0.41 | % | 0.83 | % | 0.81 | % | 5.84 | % | |||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 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 | 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 | 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 | 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 | 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: | 4/1/2010 - 9/30/2010 (5) | $ | 10.47 | $ | — | (6) | $ | 0.26 | $ | 0.26 | $ | (0.07 | ) | $ | — | $ | (0.07 | ) | $ | 10.66 | 2.54 | % | $ | 23,170 | 1.16 | % | 1.58 | % | 0.06 | % | 5.84 | % | ||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 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 | 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 | 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 | 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 | 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: | 4/1/2010 - 9/30/2010 (5) | $ | 10.47 | $ | — | (6) | $ | 0.26 | $ | 0.26 | $ | (0.07 | ) | $ | — | $ | (0.07 | ) | $ | 10.66 | 2.55 | % | $ | 83,469 | 1.16 | % | 1.58 | % | 0.06 | % | 5.84 | % | ||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 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 | 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 | 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 | 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 | 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 | % |
See Notes to Financial Statements | See explanation of references on C-4 |
C-1
PACIFIC LIFE FUNDS
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period were as follows:
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period were as follows:
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios of | Ratios of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Activities | Distributions | Expenses After | Expenses Before | Ratios of Net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | Net Assets, | Expense | Expense | Investment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, | Net Realized | Total from | from Net | Distributions | Net Asset Value, | End of | Reductions to | Reductions to | Income (Loss) to | Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of | Net Investment | and Unrealized | Investment | Investment | from | Total | End of | Total | Year or Period | Average | Average | Average Net | Turnover | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For each Year or Period | Year or Period | Income (Loss) (1) | Gain (Loss) | Operations | Income | Capital Gains | Distributions | Year or Period | Returns (2) | (in thousands) | Net Assets (3), (4) | Net Assets (4) | Assets (4) | Rates | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
PL Portfolio Optimization Moderate-Conservative Fund (Continued) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R: | 4/1/2010 - 9/30/2010 (5) | $ | 10.51 | $ | 0.03 | $ | 0.26 | $ | 0.29 | $ | (0.08 | ) | $ | — | $ | (0.08 | ) | $ | 10.72 | 2.83 | % | $ | 11,465 | 0.66 | % | 1.08 | % | 0.56 | % | 5.84 | % | ||||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 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 | 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 | 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 | 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 | 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 | % | |||||||||||||||||||||||||||||||||||||||||||||||
PL Portfolio Optimization Moderate Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2010 - 9/30/2010 (5) | $ | 10.81 | $ | 0.03 | $ | 0.23 | $ | 0.26 | $ | (0.09 | ) | $ | — | $ | (0.09 | ) | $ | 10.98 | 2.50 | % | $ | 293,721 | 0.41 | % | 0.82 | % | 0.58 | % | 4.78 | % | ||||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 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 | 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 | 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 | 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 | 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: | 4/1/2010 - 9/30/2010 (5) | $ | 10.74 | $ | (0.01 | ) | $ | 0.22 | $ | 0.21 | $ | (0.07 | ) | $ | — | $ | (0.07 | ) | $ | 10.88 | 2.05 | % | $ | 74,018 | 1.16 | % | 1.57 | % | (0.17 | %) | 4.78 | % | |||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 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 | 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 | 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 | 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 | 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: | 4/1/2010 - 9/30/2010 (5) | $ | 10.73 | $ | (0.01 | ) | $ | 0.22 | $ | 0.21 | $ | (0.07 | ) | $ | — | $ | (0.07 | ) | $ | 10.87 | 2.06 | % | $ | 244,675 | 1.16 | % | 1.57 | % | (0.17 | %) | 4.78 | % | |||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 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 | 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 | 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 | 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 | 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: | 4/1/2010 - 9/30/2010 (5) | $ | 10.77 | $ | 0.02 | $ | 0.23 | $ | 0.25 | $ | (0.09 | ) | $ | — | $ | (0.09 | ) | $ | 10.93 | 2.35 | % | $ | 27,050 | 0.65 | % | 1.07 | % | 0.33 | % | 4.78 | % | ||||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 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 | 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 | 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 | 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 | 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: | 4/1/2010 - 9/30/2010 (5) | $ | 10.68 | $ | 0.02 | $ | 0.18 | $ | 0.20 | $ | (0.07 | ) | $ | — | $ | (0.07 | ) | $ | 10.81 | 1.97 | % | $ | 244,188 | 0.40 | % | 0.82 | % | 0.29 | % | 6.67 | % | ||||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 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 | 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 | 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 | 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 | 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 | % |
See Notes to Financial Statements | See explanation of references on C-4 |
C-2
PACIFIC LIFE FUNDS
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period were as follows:
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period were as follows:
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios of | Ratios of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Activities | Distributions | Expenses After | Expenses Before | Ratios of Net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | Net Assets, | Expense | Expense | Investment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, | Net Realized | Total from | from Net | Distributions | Net Asset Value, | End of | Reductions to | Reductions to | Income (Loss) to | Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of | Net Investment | and Unrealized | Investment | Investment | from | Total | End of | Total | Year or Period | Average | Average | Average Net | Turnover | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For each Year or Period | Year or Period | Income (Loss) (1) | Gain (Loss) | Operations | Income | Capital Gains | Distributions | Year or Period | Returns (2) | (in thousands) | Net Assets (3), (4) | Net Assets (4) | Assets (4) | Rates | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
PL Portfolio Optimization Moderate-Aggressive Fund (Continued) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class B: | 4/1/2010 - 9/30/2010 (5) | $ | 10.57 | $ | (0.02 | ) | $ | 0.18 | $ | 0.16 | $ | (0.05 | ) | $ | — | $ | (0.05 | ) | $ | 10.68 | 1.61 | % | $ | 71,083 | 1.15 | % | 1.57 | % | (0.45 | %) | 6.67 | % | |||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 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 | 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 | 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 | 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 | 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: | 4/1/2010 - 9/30/2010 (5) | $ | 10.55 | $ | (0.02 | ) | $ | 0.17 | $ | 0.15 | $ | (0.05 | ) | $ | — | $ | (0.05 | ) | $ | 10.65 | 1.52 | % | $ | 199,362 | 1.15 | % | 1.57 | % | (0.45 | %) | 6.67 | % | |||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 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 | 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 | 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 | 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 | 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: | 4/1/2010 - 9/30/2010 (5) | $ | 10.67 | $ | — | (6) | $ | 0.19 | $ | 0.19 | $ | (0.07 | ) | $ | — | $ | (0.07 | ) | $ | 10.79 | 1.81 | % | $ | 13,212 | 0.65 | % | 1.07 | % | 0.05 | % | 6.67 | % | |||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 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 | 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 | 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 | 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 | 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 | % | |||||||||||||||||||||||||||||||||||||||||||||||
PL Portfolio Optimization Aggressive Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2010 - 9/30/2010 (5) | $ | 10.66 | $ | — | (6) | $ | 0.14 | $ | 0.14 | $ | (0.07 | ) | $ | — | $ | (0.07 | ) | $ | 10.73 | 1.37 | % | $ | 106,601 | 0.40 | % | 0.85 | % | 0.09 | % | 12.44 | % | |||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 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 | 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 | 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 | 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 | 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: | 4/1/2010 - 9/30/2010 (5) | $ | 10.46 | $ | (0.03 | ) | $ | 0.14 | $ | 0.11 | $ | (0.05 | ) | $ | — | $ | (0.05 | ) | $ | 10.52 | 1.11 | % | $ | 28,904 | 1.15 | % | 1.60 | % | (0.65 | %) | 12.44 | % | |||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 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 | 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 | 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 | 12.52 | (— | )(6) | 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 | 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: | 4/1/2010 - 9/30/2010 (5) | $ | 10.46 | $ | (0.03 | ) | $ | 0.14 | $ | 0.11 | $ | (0.05 | ) | $ | — | $ | (0.05 | ) | $ | 10.52 | 1.10 | % | $ | 67,716 | 1.15 | % | 1.60 | % | (0.65 | %) | 12.44 | % | |||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 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 | 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 | 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 | 12.51 | (— | )(6) | 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 | 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 | % |
See Notes to Financial Statements | See explanation of references on C-4 |
C-3
PACIFIC LIFE FUNDS
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period were as follows:
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period were as follows:
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios of | Ratios of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Activities | Distributions | Expenses After | Expenses Before | Ratios of Net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | Net Assets, | Expense | Expense | Investment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, | Net Realized | Total from | from Net | Distributions | Net Asset Value, | End of | Reductions to | Reductions to | Income (Loss) to | Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of | Net Investment | and Unrealized | Investment | Investment | from | Total | End of | Total | Year or Period | Average | Average | Average Net | Turnover | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For each Year or Period | Year or Period | Income (Loss) (1) | Gain (Loss) | Operations | Income | Capital Gains | Distributions | Year or Period | Returns (2) | (in thousands) | Net Assets (3), (4) | Net Assets (4) | Assets (4) | Rates | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
PL Portfolio Optimization Aggressive Fund (Continued) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R: | 4/1/2010 - 9/30/2010 (5) | $ | 10.61 | $ | (0.01 | ) | $ | 0.13 | $ | 0.12 | $ | (0.06 | ) | $ | — | $ | (0.06 | ) | $ | 10.67 | 1.30 | % | $ | 4,835 | 0.65 | % | 1.10 | % | (0.16 | %) | 12.44 | % | |||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 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 | 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 | 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 | 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 | 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 (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: | 4/1/2010 - 9/30/2010 (5) | $ | 1.00 | $ | (— | )(6) | $ | — | (6) | $ | — | $ | — | $ | — | $ | — | $ | 1.00 | 0.00 | % | $ | 56,616 | 0.27 | % | 0.98 | % | (— | %)(6) | N/A | |||||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 1.00 | (— | )(6) | — | (6) | — | (— | )(6) | — | (— | )(6) | 1.00 | 0.03 | % | 34,669 | 0.36 | % | 1.09 | % | (— | %)(6) | 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 |
(1) | Net investment income (loss) per share has been calculated using the average shares method except for the PL Money Market Fund. | |
(2) | 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. | |
(3) | 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 in Notes to Financial Statements. 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. | |
(4) | The ratios are annualized for periods of less than one full year. | |
(5) | Unaudited. | |
(6) | Amount represents less than $0.005 per share or less than 0.005%. | |
(7) | Class B and C shares were converted to Class A shares on June 29, 2005. |
See Notes to Financial Statements |
C-4
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
(Unaudited)
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. As of September 30, 2010, the Trust was comprised of twenty-three separate funds, six of which are presented in this report (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 (collectively, the “Portfolio Optimization Funds”), and PL Money Market Fund.
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.
The PL Money Market Fund offers Class A shares only, which are sold at NAV without an initial sales charge.
The Portfolio Optimization Funds invest substantially all of their assets in Class P shares of other funds of the Trust (collectively, the “Underlying Funds”).
The Underlying Funds are not covered by this report. The accounting policies of the Underlying Funds are outlined in the Underlying Funds’ shareholder report which is available without charge by calling 1-800-722-2333, on the Trust’s website at http://www.PacificLife.com, on the Securities and Exchange Commission (the “SEC”) website at http://www.sec.gov, or at the SEC’s Public Reference Room in Washington D.C.
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. In preparing the financial statements, management is required 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 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.
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 fair 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 liabilities), and dividing by the total number of shares outstanding. The fair value of each security or other investment (each a “Holding” and collectively “Holdings”) is the amount which a Fund might reasonably expect to receive for the Holding upon its current sale in the ordinary course.
Each Fund’s NAV per share is calculated once a day, every day the New York Stock Exchange (“NYSE”) is open, including days when foreign markets are closed. The value of each Fund (the NAV) is determined as of the time of the close of the NYSE, which is usually 4:00 p.m. Eastern Time.
Each Fund’s NAV will not be calculated 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 securities or other instruments or determinations of NAV not practicable, or (iv) the SEC permits a delay for the protection of shareholders.
For purposes of calculating the NAV:
Portfolio Optimization Funds. The Holdings 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.
Money Market Instruments and Short-Term Holdings. The Holdings of the PL Money Market Fund are valued at amortized cost, in accordance with Rule 2a-7 under the 1940 Act. Amortized cost 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 consistency in valuation (and may only be used if it 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. Fund Holdings of other funds for temporary cash purposes are valued at their respective NAVs.
D-1
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are recorded on a trade date basis. Dividend income is recorded on the ex-dividend date. 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. Realized gains and losses from securities transactions are recorded on the basis of identified cost, which is also used for Federal income tax purposes. 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
The Portfolio Optimization Funds currently declare and pay dividends on net investment income at least annually. Dividends for the PL Money Market Fund, if any, are declared daily and paid monthly. 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 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. 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.
E. INVESTMENTS AND RISKS
General Investment Risks
An investment in each Fund represents an indirect investment in the Holdings owned by that Fund. As with any mutual fund, the value of these Holdings may move up or down and as a result, 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. 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 the Adviser’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.
None of the Funds may invest in illiquid securities and illiquid bank loans (collectively, “Illiquid Holdings”) if as a result of such investment, more than 15% of its net assets (5% of total assets for the PL Money Market Fund), 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 Holdings. Illiquid Holdings may be difficult to value and difficult to sell, which means a Fund may not be able to sell such a Holding quickly for its full value. As of September 30, 2010, there were no Illiquid Holdings in the Funds.
Portfolio Optimization Funds Risks
The Portfolio Optimization Funds are exposed to the same risks as the Underlying Funds in direct proportion to the allocation of assets among those funds. Allocations among the Underlying Funds are determined using an asset allocation process, which seeks to optimize returns by allocating among different asset classes given various levels of risk tolerance. The allocations of the Portfolio Optimization Funds may not effectively decrease risk or increase returns for investors, and the selection and weighting of allocations to asset classes and/or Underlying Funds may cause them to underperform other funds with a similar investment objective. The Portfolio Optimization Funds are non-diversified as to issuers (i.e. Underlying Funds), and may invest a significant portion of its assets in any Underlying Fund (See Note 6).
PL Money Market Fund Risks
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 fixed income (debt) Holdings. There is a risk that an issuer of a Fund’s fixed income (debt) Holding (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.
D-2
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
Foreign Holdings may expose a Fund to potential losses and volatility resulting from changes in unstable political and economic conditions, a lack of information, differences in the way securities markets operate, relatively lower market liquidity, less stringent or different financial reporting and accounting standards and controls, foreign taxation issues and foreign controls on investments. The Holdings of the PL Money Market Fund must be denominated in U.S. dollars.
F. NEW ACCOUNTING PRONOUNCEMENT
In January 2010, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2010-06, Improving Disclosures about Fair Value Measurements, (“ASU”). This ASU amends FASB Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures, and requires entities to disclose the amounts and reasons for significant transfers between Levels 1 and 2 in the fair value hierarchy and inputs and valuation techniques used to determine Level 2 and Level 3 fair value measurements (see Note 10), and 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). This ASU is effective for interim and annual periods 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 interim and annual periods beginning after December 15, 2010). The Trust implemented the disclosures required for interim and annual periods beginning after December 15, 2009 (see the Notes to Schedules of Investments section of each Fund’s Schedule of Investments and Note 10). Management is currently evaluating the impact of additional implementation of this ASU 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”), a wholly-owned subsidiary of Pacific Life Insurance Company (“Pacific Life”), serves as investment adviser to the Trust and manages the Portfolio Optimization Funds. PLFA also does business under the name Pacific Asset Management. Pacific Asset Management manages the PL Money Market Fund. 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 Portfolio Optimization Moderate-Conservative | 0.20 | % | ||
PL Portfolio Optimization Moderate | 0.20 | % | ||
PL Portfolio Optimization Moderate-Aggressive | 0.20 | % | ||
PL Portfolio Optimization Aggressive | 0.20 | % | ||
PL Money Market | See | (1) |
(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. |
Pursuant to an Administration and Shareholder Services Agreement (the “Agreement”), Pacific Life serves as administrator (the “Administrator”) to the Trust. Effective July 1, 2010, the Trust compensated the Administrator for its administrative fee at an annual rate of 0.15% for each of the Portfolio Optimization Funds (which invest in the Underlying Funds that each have an administrative fee of 0.15%) and 0.30% for the PL Money Market Fund. From April 1, 2010 to June 30, 2010, the Trust compensated the Administrator at an annual rate of 0.30% of average daily net assets of each Fund. The Administrative fee is 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 compensated Pacific Life and PLFA for their expenses in providing support services to the Trust in connection with various matters, some of which include the time spent by legal, accounting, and compliance personnel of PLFA (including individuals who may be officers or Trustees of the Trust (“Personnel”)), to attend meetings of the Board and to provide assistance with the coordination and supervision in connection with the services procured for the Trust under the Administration Agreement. Support services do not include any services for which PLFA is responsible pursuant to the Investment Advisory Agreement. 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, advertisements, and other marketing efforts by the Distributor in connection with the distribution or sale of the Trust’s shares and makes distribution and/or service payments to selling groups in connection with the sale of certain 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
D-3
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
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. For the period April 1, 2010 through July 1, 2010, the 0.25% service fee for each class of the Portfolio Optimization Funds was waived to avoid duplication of service fees, since the service fees were being charged by both the Portfolio Optimization Funds and the Underlying Funds in which they invest. Effective July 2, 2010, the service fee waiver for each class of the Portfolio Optimization Funds was discontinued in light of changes to the Underlying Funds expense structure, which, among other expenses, eliminated the Underlying Funds’ service fee. The fees were accrued daily.
For the six-month period ended September 30, 2010, the Distributor, acting as underwriter, received net commissions (upfront sales charges) of $7,182,907 from the sale of Class A shares and received $414,336 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 Class A of the corresponding Portfolio Optimization Funds without a sales load and PL Money Market Fund, and/or the corresponding Underlying Funds. 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 market fluctuation. The change in net unrealized appreciation or deprecation on independent trustee’s deferred compensation accounts is included in the Trustees’ compensation and expenses in the Statements of Operations. For the six-month period ended September 30, 2010, the expenses were decreased by $3,275 as a result of the market value depreciation on such accounts. As of September 30, 2010, the total deferred trustee compensation liability was $17,689 for the independent trustees.
5. EXPENSE REDUCTIONS
To help limit the Trust’s expenses, PLFA, pursuant to an expense limitation agreement dated July 1, 2010, has contractually agreed to reduce its fees or otherwise reimburse each Fund for its operating expenses (including administration fees and 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 rate based on a percentage of a Fund’s average daily net assets. The current expense cap for the Portfolio Optimization Funds is 0.15% through June 30, 2013 and 0.30% from July 1, 2013 through June 30, 2020. The current expense cap for the PL Money Market Fund is 0.30% through June 30, 2011.
From April 1, 2010 to July 1, 2010, pursuant to an expense limitation agreement dated July 1, 2008, PLFA reimbursed each Fund for its operational expenses and Pacific Life reduced its administration fee, to the extent that the expense cap was lower than the administration fee. The expense cap from July 1, 2008 to July 1, 2010 was 0.00% for the Portfolio Optimization Funds and 0.30% for the PL Money Market Fund.
For the PL Money Market Fund, in addition to the above expense cap, PLFA has agreed, temporarily, to reimburse expenses or waive a portion of its fees, to the extent necessary to prevent the Fund’s expenses from exceeding earnings, although there can be no assurance that a negative yield will not occur.
There is no guarantee that PLFA will continue to cap/reimburse expenses and/or waive a portion of its fees upon the expiration of the applicable expense caps.
Any expense reimbursements and fee reductions, except for the administration fee reduction of $61,432 to the PL Money Market Fund, 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. The investment adviser expense reimbursement and administrator fee reduction for the six-month period ended September 30, 2010 for each Fund were as follows:
D-4
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
Investment | Total | |||||||||||
Adviser | Administrator | Reimbursements | ||||||||||
Expense | Fee | and | ||||||||||
Funds | Reimbursements | Reductions | Reductions | |||||||||
PL Portfolio Optimization Conservative | $ | 147,397 | $ | 131,857 | $ | 279,254 | ||||||
PL Portfolio Optimization Moderate-Conservative | 154,335 | 136,113 | 290,448 | |||||||||
PL Portfolio Optimization Moderate | 416,859 | 420,810 | 837,669 | |||||||||
PL Portfolio Optimization Moderate-Aggressive | 376,455 | 369,617 | 746,072 | |||||||||
PL Portfolio Optimization Aggressive | 171,430 | 147,226 | 318,656 | |||||||||
PL Money Market | 51,583 | 61,432 | 113,015 | |||||||||
Total | $ | 1,318,059 | $ | 1,267,055 | $ | 2,585,114 | ||||||
The cumulative reimbursement and reduction amounts, if any, as of September 30, 2010 that are subject to repayment for each Fund are as follows:
Expiration Date | ||||||||||||||||
Funds | 3/31/2011 | 3/31/2012 | 3/31/2013 | 3/31/2014 | ||||||||||||
PL Portfolio Optimization Conservative | $ | 257,268 | $ | 366,006 | $ | 592,826 | $ | 279,254 | ||||||||
PL Portfolio Optimization Moderate-Conservative | 575,493 | 577,457 | 678,602 | 290,448 | ||||||||||||
PL Portfolio Optimization Moderate | 2,124,615 | 1,939,507 | 2,044,114 | 837,669 | ||||||||||||
PL Portfolio Optimization Moderate-Aggressive | 2,302,787 | 1,999,277 | 1,951,672 | 746,072 | ||||||||||||
PL Portfolio Optimization Aggressive | 1,080,933 | 906,385 | 851,173 | 318,656 | ||||||||||||
PL Money Market | 93,254 | 165,706 | 147,762 | 51,583 | ||||||||||||
Total | $ | 6,434,350 | $ | 5,954,338 | $ | 6,266,149 | $ | 2,523,682 | ||||||||
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 September 30, 2010. The adviser expense reimbursement and administrator fee reduction is presented in the Statements of Operations.
6. TRANSACTIONS WITH AFFILIATES
The Funds have incurred $1,672,061 of investment advisory fees (after $44,395 advisory fee waivers for the PL Money Market Fund), $656,395 of administration fees (after $1,267,055 administrator fee reduction), and $267,308 of expenses for support services provided by Pacific Life and PLFA (at approximate cost, see Note 3), for the six-month period ended September 30, 2010. As of September 30, 2010, $293,596, $220,201, and $207,299, respectively, remained payable.
For the six-month period ended September 30, 2010, the Funds also incurred $4,355,502 of distribution and/or service fees (after distribution and/or service fee waivers of $1,005,590), payable to the Distributor under the 12b-1 Plans and non 12b-1 service plan. As of September 30, 2010, $128,544 remained payable.
As of September 30, 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 six-month period ended September 30, 2010 and total investments by each of the Portfolio Optimization Funds in each Underlying Fund as of September 30, 2010 is as follows:
Distributions | Net | Change in | As of September 30, 2010 | |||||||||||||||||||||||||||||||||||
April 1, 2010 | Purchase | Received and | Sales | Realized | Unrealized | Market | Shares | Ownership | ||||||||||||||||||||||||||||||
Fund/Underlying Fund | Market Value | Cost (1) | Reinvested (2) | Proceeds | Gain (Loss) | Appreciation | Value | Balance | Percentage | |||||||||||||||||||||||||||||
PL Portfolio Optimization Conservative Fund | ||||||||||||||||||||||||||||||||||||||
PL Floating Rate Loan | $ | 13,948,940 | $ | 8,592,223 | $ | 165,489 | $ | 629,400 | $ | (20,393 | ) | $ | 99,299 | $ | 22,156,158 | 2,247,075 | 32.80 | % | ||||||||||||||||||||
PL Inflation Managed | 27,399,176 | 14,138,918 | 378,977 | 4,596,125 | (7,542 | ) | 2,231,727 | 39,545,131 | 3,682,042 | 22.26 | % | |||||||||||||||||||||||||||
PL Managed Bond | 57,821,043 | 30,518,768 | 687,215 | 2,219,398 | 690,819 | 3,426,810 | 90,925,257 | 8,103,855 | 30.48 | % | ||||||||||||||||||||||||||||
PL Short Duration Bond | 21,195,054 | 13,185,826 | 68,162 | 5,115,973 | 6,102 | 306,252 | 29,645,423 | 2,932,287 | 32.71 | % | ||||||||||||||||||||||||||||
PL Comstock | 5,249,495 | 3,965,235 | 12,082 | 1,170,452 | 11,595 | 28,554 | 8,096,509 | 777,763 | 5.81 | % | ||||||||||||||||||||||||||||
PL Growth LT | 3,334,336 | 2,249,692 | — | 463,927 | (8,533 | ) | 98,349 | 5,209,917 | 470,209 | 5.26 | % | |||||||||||||||||||||||||||
PL Large-Cap Growth | 3,615,993 | 2,179,296 | — | 963,278 | 17,034 | 189,384 | 5,038,429 | 645,952 | 5.82 | % | ||||||||||||||||||||||||||||
PL Large-Cap Value | 8,513,338 | 7,282,223 | 31,398 | 2,116,305 | (33,662 | ) | 2,819 | 13,679,811 | 1,362,531 | 7.19 | % | |||||||||||||||||||||||||||
PL Main Street Core | 3,306,392 | 2,787,704 | 2,824 | 671,597 | (34,759 | ) | 141,310 | 5,531,874 | 618,087 | 4.15 | % | |||||||||||||||||||||||||||
PL Mid-Cap Equity | 5,218,666 | 3,717,241 | 2,928 | 904,253 | (64,706 | ) | 404,900 | 8,374,776 | 942,045 | 7.17 | % | |||||||||||||||||||||||||||
PL International Large-Cap | 3,287,070 | 3,413,844 | 39,159 | 1,223,393 | (63,241 | ) | 299,765 | 5,753,204 | 413,305 | 4.80 | % | |||||||||||||||||||||||||||
PL International Value | 3,553,342 | 3,484,802 | 25,461 | 1,302,153 | (75,738 | ) | 204,138 | 5,889,852 | 661,781 | 7.12 | % | |||||||||||||||||||||||||||
Total | $ | 156,442,845 | $ | 95,515,772 | $ | 1,413,695 | $ | 21,376,254 | $ | 416,976 | $ | 7,433,307 | $ | 239,846,341 | ||||||||||||||||||||||||
D-5
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
Change in | ||||||||||||||||||||||||||||||||||||||
Distributions | Net | Unrealized | As of September 30, 2010 | |||||||||||||||||||||||||||||||||||
April 1, 2010 | Purchase | Received and | Sales | Realized | Appreciation | Market | Shares | Ownership | ||||||||||||||||||||||||||||||
Fund/Underlying Fund | Market Value | Cost (1) | Reinvested (2) | Proceeds | Gain (Loss) | (Depreciation) | Value | Balance | Percentage | |||||||||||||||||||||||||||||
PL Portfolio Optimization Moderate-Conservative Fund | ||||||||||||||||||||||||||||||||||||||
PL Floating Rate Loan | $ | 12,427,676 | $ | 2,335,398 | $ | 128,265 | $ | 175,245 | $ | (4,255 | ) | $ | 23,033 | $ | 14,734,872 | 1,494,409 | 21.81 | % | ||||||||||||||||||||
PL Inflation Managed | 23,688,489 | 4,410,721 | 307,291 | 535,274 | 3,480 | 1,681,869 | 29,556,576 | 2,752,009 | 16.64 | % | ||||||||||||||||||||||||||||
PL Managed Bond | 45,254,807 | 10,531,443 | 497,098 | 849,041 | 484,996 | 2,347,635 | 58,266,938 | 5,193,132 | 19.54 | % | ||||||||||||||||||||||||||||
PL Short Duration Bond | 18,728,389 | 4,193,702 | 54,515 | 2,539,893 | 5,808 | 219,292 | 20,661,813 | 2,043,701 | 22.80 | % | ||||||||||||||||||||||||||||
PL Comstock | 10,675,296 | 3,889,265 | 21,406 | 145,590 | (43,023 | ) | (114,078 | ) | 14,283,276 | 1,372,073 | 10.24 | % | ||||||||||||||||||||||||||
PL Growth LT | 5,282,950 | 1,857,938 | — | 72,294 | (9,814 | ) | 27,669 | 7,086,449 | 639,571 | 7.16 | % | |||||||||||||||||||||||||||
PL Large-Cap Growth | 5,502,715 | 3,946,319 | — | 182,438 | (49,410 | ) | 413,777 | 9,630,963 | 1,234,739 | 11.14 | % | |||||||||||||||||||||||||||
PL Large-Cap Value | 12,277,896 | 7,184,447 | 38,135 | 192,245 | (68,205 | ) | (208,437 | ) | 19,031,591 | 1,895,577 | 10.01 | % | ||||||||||||||||||||||||||
PL Main Street Core | 12,667,594 | 3,698,151 | 8,965 | 4,360,318 | (1,033,325 | ) | 947,645 | 11,928,712 | 1,332,817 | 8.96 | % | |||||||||||||||||||||||||||
PL Mid-Cap Equity | 6,643,164 | 2,886,512 | 3,523 | 259,960 | (37,946 | ) | 330,280 | 9,565,573 | 1,075,992 | 8.18 | % | |||||||||||||||||||||||||||
PL Mid-Cap Growth | 3,301,373 | 1,107,410 | — | 167,122 | 27,325 | 442,401 | 4,711,387 | 506,601 | 8.96 | % | ||||||||||||||||||||||||||||
PL Small-Cap Value | 1,558,992 | 927,234 | 3,502 | 130,914 | (9,790 | ) | 78,991 | 2,428,015 | 274,662 | 3.86 | % | |||||||||||||||||||||||||||
PL International Large-Cap | 9,271,422 | 3,705,366 | 85,907 | 1,115,295 | (214,698 | ) | 510,135 | 12,242,837 | 879,514 | 10.21 | % | |||||||||||||||||||||||||||
PL International Value | 5,592,955 | 2,321,197 | 32,967 | 528,198 | (225,560 | ) | 210,588 | 7,403,949 | 831,904 | 8.95 | % | |||||||||||||||||||||||||||
$ | 172,873,718 | $ | 52,995,103 | $ | 1,181,574 | $ | 11,253,827 | $ | (1,174,417 | ) | $ | 6,910,800 | $ | 221,532,951 | ||||||||||||||||||||||||
Change in | ||||||||||||||||||||||||||||||||||||||
Distributions | Net | Unrealized | As of September 30, 2010 | |||||||||||||||||||||||||||||||||||
April 1, 2010 | Purchase | Received and | Sales | Realized | Appreciation | Market | Shares | Ownership | ||||||||||||||||||||||||||||||
Fund/Underlying Fund | Market Value | Cost (1) | Reinvested (2) | Proceeds | Gain (Loss) | (Depreciation) | Value | Balance | Percentage | |||||||||||||||||||||||||||||
PL Portfolio Optimization Moderate Fund | ||||||||||||||||||||||||||||||||||||||
PL Floating Rate Loan | $ | 26,756,141 | $ | 3,735,996 | $ | 282,919 | $ | 91,098 | $ | (2,733 | ) | $ | (24,994 | ) | $ | 30,656,231 | 3,109,151 | 45.39 | % | |||||||||||||||||||
PL Inflation Managed | 57,412,437 | 8,677,298 | 769,963 | 2,582,863 | 1,688 | 3,970,358 | 68,248,881 | 6,354,644 | 38.42 | % | ||||||||||||||||||||||||||||
PL Managed Bond | 88,899,450 | 12,821,568 | 975,847 | 3,834,769 | 941,569 | 4,285,898 | 104,089,563 | 9,277,145 | 34.90 | % | ||||||||||||||||||||||||||||
PL Short Duration Bond | 26,096,259 | 4,485,260 | 76,205 | 661,717 | 905 | 320,370 | 30,317,282 | 2,998,742 | 33.45 | % | ||||||||||||||||||||||||||||
PL Comstock | 44,744,877 | 7,625,599 | 83,874 | 31,035 | (15,198 | ) | (908,847 | ) | 51,499,270 | 4,947,096 | 36.91 | % | ||||||||||||||||||||||||||
PL Growth LT | 27,729,279 | 5,033,179 | — | 19,397 | (2,168 | ) | (98,292 | ) | 32,642,601 | 2,946,083 | 32.99 | % | ||||||||||||||||||||||||||
PL Large-Cap Growth | 22,555,165 | 9,992,930 | — | 19,397 | (8,868 | ) | 1,062,447 | 33,582,277 | 4,305,420 | 38.85 | % | |||||||||||||||||||||||||||
PL Large-Cap Value | 54,988,140 | 16,911,408 | 160,695 | 42,673 | (19,413 | ) | (1,600,489 | ) | 70,397,668 | 7,011,720 | 37.03 | % | ||||||||||||||||||||||||||
PL Main Street Core | 50,578,147 | 5,991,996 | 33,385 | 10,766,811 | (4,022,189 | ) | 3,492,469 | 45,306,997 | 5,062,234 | 34.00 | % | |||||||||||||||||||||||||||
PL Mid-Cap Equity | 32,887,850 | 5,276,581 | 15,490 | 23,276 | (11,627 | ) | 1,157,527 | 39,302,545 | 4,420,984 | 33.60 | % | |||||||||||||||||||||||||||
PL Mid-Cap Growth | 11,127,446 | 858,824 | — | 17,553 | 109,696 | 1,276,558 | 13,354,971 | 1,436,018 | 25.39 | % | ||||||||||||||||||||||||||||
PL Small-Cap Growth | 5,725,947 | 964,092 | — | 89,227 | (8,407 | ) | 185,221 | 6,777,626 | 706,739 | 23.69 | % | |||||||||||||||||||||||||||
PL Small-Cap Value | 11,191,274 | 7,539,061 | 20,540 | 108,647 | (19,846 | ) | 825,710 | 19,448,092 | 2,200,010 | 30.89 | % | |||||||||||||||||||||||||||
PL Real Estate | 11,653,763 | 747,594 | 23,258 | 1,018,115 | (183,877 | ) | 1,220,086 | 12,442,709 | 1,235,622 | 34.57 | % | |||||||||||||||||||||||||||
PL Emerging Markets | 17,229,262 | 1,501,713 | — | 1,108,972 | 14,290 | 2,269,355 | 19,905,648 | 1,442,438 | 37.83 | % | ||||||||||||||||||||||||||||
PL International Large-Cap | 34,217,226 | 5,722,714 | 293,017 | 1,237,442 | (401,680 | ) | 1,062,703 | 39,656,538 | 2,848,889 | 33.06 | % | |||||||||||||||||||||||||||
PL International Value | 22,828,900 | 3,737,884 | 124,348 | 5,978,381 | (2,994,879 | ) | 2,142,913 | 19,860,785 | 2,231,549 | 24.02 | % | |||||||||||||||||||||||||||
$ | 546,621,563 | $ | 101,623,697 | $ | 2,859,541 | $ | 27,631,373 | $ | (6,622,737 | ) | $ | 20,638,993 | $ | 637,489,684 | ||||||||||||||||||||||||
Change in | ||||||||||||||||||||||||||||||||||||||
Distributions | Net | Unrealized | As of September 30, 2010 | |||||||||||||||||||||||||||||||||||
April 1, 2010 | Purchase | Received and | Sales | Realized | Appreciation | Market | Shares | Ownership | ||||||||||||||||||||||||||||||
Fund/Underlying Fund | Market Value | Cost (1) | Reinvested (2) | Proceeds | Gain (Loss) | (Depreciation) | Value | Balance | Percentage | |||||||||||||||||||||||||||||
PL Portfolio Optimization Moderate-Aggressive Fund | ||||||||||||||||||||||||||||||||||||||
PL Inflation Managed | $ | 37,772,773 | $ | 3,701,709 | $ | 492,194 | $ | 4,131,767 | $ | 71,802 | $ | 2,390,565 | $ | 40,297,276 | 3,752,074 | 22.68 | % | |||||||||||||||||||||
PL Managed Bond | 33,146,636 | 6,048,087 | 355,172 | 1,641,729 | 376,406 | 1,622,360 | 39,906,932 | 3,556,768 | 13.38 | % | ||||||||||||||||||||||||||||
PL Short Duration Bond | 9,410,825 | 1,071,325 | 26,840 | 620,095 | 1,352 | 108,810 | 9,999,057 | 989,026 | 11.04 | % | ||||||||||||||||||||||||||||
PL Comstock | 45,255,401 | 2,809,704 | 80,934 | 68,200 | (33,471 | ) | (1,061,690 | ) | 46,982,678 | 4,513,226 | 33.68 | % | ||||||||||||||||||||||||||
PL Growth LT | 34,822,202 | 2,765,897 | — | 53,045 | (5,341 | ) | (313,863 | ) | 37,215,850 | 3,358,831 | 37.62 | % | ||||||||||||||||||||||||||
PL Large-Cap Growth | 20,044,255 | 6,641,464 | — | 37,889 | (14,352 | ) | 775,932 | 27,409,410 | 3,514,027 | 31.71 | % | |||||||||||||||||||||||||||
PL Large-Cap Value | 59,254,893 | 5,088,153 | 165,113 | 90,934 | (39,414 | ) | (2,087,716 | ) | 62,290,095 | 6,204,193 | 32.77 | % | ||||||||||||||||||||||||||
PL Main Street Core | 55,172,436 | 2,318,616 | 35,094 | 9,261,742 | (3,476,655 | ) | 2,800,989 | 47,588,738 | 5,317,177 | 35.71 | % | |||||||||||||||||||||||||||
PL Mid-Cap Equity | 40,531,478 | 2,236,711 | 17,842 | 962,836 | (363,567 | ) | 1,576,337 | 43,035,965 | 4,840,941 | 36.79 | % | |||||||||||||||||||||||||||
PL Mid-Cap Growth | 25,488,101 | 339,239 | — | 6,011,041 | 505,617 | 1,859,642 | 22,181,558 | 2,385,114 | 42.15 | % | ||||||||||||||||||||||||||||
PL Small-Cap Growth | 10,493,002 | 777,038 | — | 591,075 | (75,280 | ) | 322,702 | 10,926,387 | 1,139,352 | 38.18 | % | |||||||||||||||||||||||||||
PL Small-Cap Value | 15,488,739 | 10,469,779 | 26,909 | 607,155 | (35,508 | ) | 1,203,119 | 26,545,883 | 3,002,928 | 42.15 | % | |||||||||||||||||||||||||||
PL Real Estate | 16,023,035 | 680,020 | 29,337 | 2,524,668 | (297,858 | ) | 1,614,787 | 15,524,653 | 1,541,674 | 43.14 | % | |||||||||||||||||||||||||||
PL Emerging Markets | 20,253,709 | 425,360 | — | 1,246,347 | 51,259 | 2,534,017 | 22,017,998 | 1,595,507 | 41.85 | % | ||||||||||||||||||||||||||||
PL International Large-Cap | 39,891,136 | 3,225,341 | 329,714 | 823,963 | (246,121 | ) | 773,864 | 43,149,971 | 3,099,854 | 35.97 | % | |||||||||||||||||||||||||||
PL International Value | 34,935,717 | 2,967,787 | 181,859 | 4,421,605 | (3,025,261 | ) | 1,843,988 | 32,482,485 | 3,649,717 | 39.29 | % | |||||||||||||||||||||||||||
$ | 497,984,338 | $ | 51,566,230 | $ | 1,741,008 | $ | 33,094,091 | $ | (6,606,392 | ) | $ | 15,963,843 | $ | 527,554,936 | ||||||||||||||||||||||||
D-6
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
Change in | ||||||||||||||||||||||||||||||||||||||
Distributions | Net | Unrealized | As of September 30, 2010 | |||||||||||||||||||||||||||||||||||
April 1, 2010 | Purchase | Received and | Sales | Realized | Appreciation | Market | Shares | Ownership | ||||||||||||||||||||||||||||||
Fund/Underlying Fund | Market Value | Cost (1) | Reinvested (2) | Proceeds | Gain (Loss) | (Depreciation) | Value | Balance | Percentage | |||||||||||||||||||||||||||||
PL Portfolio Optimization Aggressive Fund | ||||||||||||||||||||||||||||||||||||||
PL Managed Bond | $ | 5,575,991 | $ | 1,669,214 | $ | 60,506 | $ | 2,531,055 | $ | 93,519 | $ | 207,404 | $ | 5,075,579 | 452,369 | 1.70 | % | |||||||||||||||||||||
PL Comstock | 20,322,078 | 1,030,371 | 36,122 | 2,166,100 | (832,760 | ) | 252,357 | 18,642,068 | 1,790,785 | 13.36 | % | |||||||||||||||||||||||||||
PL Growth LT | 16,191,792 | 900,868 | — | 138,015 | (24,745 | ) | (142,629 | ) | 16,787,271 | 1,515,097 | 16.97 | % | ||||||||||||||||||||||||||
PL Large-Cap Growth | 8,103,722 | 2,484,035 | — | 79,928 | (19,432 | ) | 302,941 | 10,791,338 | 1,383,505 | 12.48 | % | |||||||||||||||||||||||||||
PL Large-Cap Value | 24,030,520 | 1,748,636 | 66,522 | 255,042 | (103,913 | ) | (773,233 | ) | 24,713,490 | 2,461,503 | 13.00 | % | ||||||||||||||||||||||||||
PL Main Street Core | 24,276,726 | 1,069,655 | 15,386 | 2,247,451 | (941,855 | ) | 726,251 | 22,898,712 | 2,558,515 | 17.18 | % | |||||||||||||||||||||||||||
PL Mid-Cap Equity | 16,162,199 | 2,192,100 | 7,205 | 2,095,120 | (724,930 | ) | 1,131,952 | 16,673,406 | 1,875,524 | 14.26 | % | |||||||||||||||||||||||||||
PL Mid-Cap Growth | 12,099,420 | 1,149,153 | — | 2,193,555 | 236,084 | 1,069,110 | 12,360,212 | 1,329,055 | 23.50 | % | ||||||||||||||||||||||||||||
PL Small-Cap Growth | 8,353,605 | 2,681,760 | — | 491,222 | (36,844 | ) | 404,003 | 10,911,302 | 1,137,779 | 38.13 | % | |||||||||||||||||||||||||||
PL Small-Cap Value | 9,928,335 | 4,906,512 | 17,790 | 878,969 | (30,938 | ) | 608,432 | 14,551,162 | 1,646,059 | 23.10 | % | |||||||||||||||||||||||||||
PL Real Estate | 8,312,172 | 1,666,363 | 15,781 | 2,584,478 | (8,542 | ) | 621,249 | 8,022,545 | 796,678 | 22.29 | % | |||||||||||||||||||||||||||
PL Emerging Markets | 10,221,959 | 1,751,347 | — | 2,442,141 | 364,296 | 795,240 | 10,690,701 | 774,688 | 20.32 | % | ||||||||||||||||||||||||||||
PL International Large-Cap | 20,032,406 | 2,317,947 | 171,576 | 3,473,281 | (549,788 | ) | 649,129 | 19,147,989 | 1,375,574 | 15.96 | % | |||||||||||||||||||||||||||
PL International Value | 18,012,668 | 2,423,149 | 98,605 | 2,881,388 | (2,049,123 | ) | 1,445,476 | 17,049,387 | 1,915,661 | 20.62 | % | |||||||||||||||||||||||||||
$ | 201,623,593 | $ | 27,991,110 | $ | 489,493 | $ | 24,457,745 | $ | (4,628,971 | ) | $ | 7,297,682 | $ | 208,315,162 | ||||||||||||||||||||||||
(1) | Purchased cost excludes distributions received and reinvested. | |
(2) | Distributions received includes distributions from net investment income from the Underlying Funds. |
7. TAX CHARACTER OF DISTRIBUTIONS AND COMPONENTS OF DISTRIBUTABLE EARNINGS
The tax character of distributions paid during the six-month period ended September 30, 2010, is as follows:
Distributions Paid From | ||||||||||||
Ordinary | Long-Term | Total | ||||||||||
Funds | Income | Capital Gains | Distributions | |||||||||
PL Portfolio Optimization Conservative | $ | 779,732 | $ | — | $ | 779,732 | ||||||
PL Portfolio Optimization Moderate-Conservative | 1,499,262 | — | 1,499,262 | |||||||||
PL Portfolio Optimization Moderate | 4,547,714 | — | 4,547,714 | |||||||||
PL Portfolio Optimization Moderate-Aggressive | 3,046,906 | — | 3,046,906 | |||||||||
PL Portfolio Optimization Aggressive | 1,134,052 | — | 1,134,052 |
The tax character of distributions paid during the year ended March 31, 2010, were as follows:
Distributions Paid From | ||||||||||||
Ordinary | Long-Term | Total | ||||||||||
Funds | Income | Capital Gains | Distributions | |||||||||
PL Portfolio Optimization Conservative | $ | 3,842,769 | $ | — | $ | 3,824,769 | ||||||
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 |
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) | ||||||||||||
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 | — |
The components of the accumulated capital and other losses as of March 31, 2010, are summarized in Note 8.
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.
D-7
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
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. The net capital loss carryovers and the post-October capital losses deferred as of March 31, 2010, were as follows:
Post | Accumulated | |||||||||||||||||||
Net Capital | Net Capital Loss Carryover | October | Capital and | |||||||||||||||||
Loss | Expiring on March 31, | Capital Loss | Other | |||||||||||||||||
Funds | Carryover | 2017 | 2018 | 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 | ) |
The aggregate Federal tax cost of investments and the composition of unrealized appreciation and depreciation on investments as of September 30, 2010, were as follows:
Gross | Gross | Net Unrealized | ||||||||||||||
Total Cost of | Unrealized | Unrealized | Appreciation | |||||||||||||
Investments | Appreciation | Depreciation | (Depreciation) | |||||||||||||
Funds | on Tax Basis | on Investments | on Investments | on Investments | ||||||||||||
PL Portfolio Optimization Conservative | $ | 226,783,784 | $ | 14,347,456 | $ | — | $ | 14,347,456 | ||||||||
PL Portfolio Optimization Moderate-Conservative | 210,960,857 | 10,572,094 | — | 10,572,094 | ||||||||||||
PL Portfolio Optimization Moderate | 621,747,924 | 26,248,232 | (9,268,776 | ) | 16,979,456 | |||||||||||
PL Portfolio Optimization Moderate-Aggressive | 526,649,285 | 21,749,176 | (20,787,063 | ) | 962,113 | |||||||||||
PL Portfolio Optimization Aggressive | 209,084,188 | 7,511,113 | (8,280,139 | ) | (769,026 | ) | ||||||||||
PL Money Market | 57,580,141 | — | — | — |
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 six-month period ended September 30, 2010, is as follows:
Funds | Purchases (1) | Sales (1) | ||||||
PL Portfolio Optimization Conservative | $ | 97,620,965 | $ | 21,376,254 | ||||
PL Portfolio Optimization Moderate-Conservative | 54,696,332 | 11,253,827 | ||||||
PL Portfolio Optimization Moderate | 105,528,790 | 27,631,373 | ||||||
PL Portfolio Optimization Moderate-Aggressive | 53,888,718 | 33,094,091 | ||||||
PL Portfolio Optimization Aggressive | 28,651,013 | 24,457,745 |
(1) | All purchases and sales are in non-U.S. Government Securities. |
10. FAIR VALUE MEASUREMENTS AND DISCLOSURES
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, the PL Money Market Fund’s 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. For fair valuations using significant unobservable inputs, the Trust provides 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 and out of Level 3 during the period. The Trust also provides the amounts and reasons for significant transfers, if any, between Level 1 and Level 2 in the fair value hierarchy (see Note 2F). For the six-month period ended September 30, 2010, there were no transfers between Level 1 and Level 2 for any of the Funds. A summary of each Fund’s Holdings
D-8
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
as of September 30, 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.
11. 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 | |||||||||||||||||||||||||||||
Period ended | Year ended | Period ended | Year ended | Period ended | Year ended | Period ended | Year ended | |||||||||||||||||||||||||
9/30/2010 | 3/31/2010 | 9/30/2010 | 3/31/2010 | 9/30/2010 | 3/31/2010 | 9/30/2010 | 3/31/2010 | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Shares sold | 6,156,362 | 5,095,105 | 3,557,062 | 4,079,611 | 6,588,204 | 9,322,499 | 4,036,820 | 6,825,323 | ||||||||||||||||||||||||
Dividends and distributions reinvested | 32,212 | 154,810 | 68,442 | 151,488 | 207,944 | 395,409 | 154,033 | 265,252 | ||||||||||||||||||||||||
Shares repurchased | (2,225,544 | ) | (2,343,715 | ) | (1,197,514 | ) | (1,540,865 | ) | (2,898,454 | ) | (4,091,285 | ) | (2,675,242 | ) | (3,652,598 | ) | ||||||||||||||||
Net increase | 3,963,030 | 2,906,200 | 2,427,990 | 2,690,234 | 3,897,694 | 5,626,623 | 1,515,611 | 3,437,977 | ||||||||||||||||||||||||
Beginning 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 | ||||||||||||||||||||||||
Ending shares outstanding | 10,583,330 | 6,620,300 | 9,842,495 | 7,414,505 | 26,756,407 | 22,858,713 | 22,595,737 | 21,080,126 | ||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||
Shares sold | 646,756 | 585,682 | 531,278 | 682,096 | 1,200,612 | 1,643,306 | 819,130 | 1,225,743 | ||||||||||||||||||||||||
Dividends and distributions reinvested | 4,039 | 27,986 | 12,982 | 32,703 | 45,501 | 83,625 | 35,669 | 49,996 | ||||||||||||||||||||||||
Shares repurchased | (145,345 | ) | (270,707 | ) | (204,629 | ) | (319,317 | ) | (527,214 | ) | (793,232 | ) | (698,489 | ) | (823,019 | ) | ||||||||||||||||
Net increase | 505,450 | 342,961 | 339,631 | 395,482 | 718,899 | 933,699 | 156,310 | 452,720 | ||||||||||||||||||||||||
Beginning 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 | ||||||||||||||||||||||||
Ending shares outstanding | 1,795,727 | 1,290,277 | 2,173,725 | 1,834,094 | 6,801,091 | 6,082,192 | 6,658,096 | 6,501,786 | ||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
Shares sold | 4,708,239 | 4,616,051 | 2,387,272 | 2,637,348 | 5,008,841 | 7,600,515 | 2,725,365 | 4,735,118 | ||||||||||||||||||||||||
Dividends and distributions reinvested | 22,947 | 134,198 | 46,251 | 107,346 | 145,160 | 250,879 | 98,431 | 132,149 | ||||||||||||||||||||||||
Shares repurchased | (1,678,642 | ) | (2,499,753 | ) | (817,955 | ) | (1,423,572 | ) | (2,299,755 | ) | (3,815,913 | ) | (2,108,726 | ) | (3,234,418 | ) | ||||||||||||||||
Net increase | 3,052,544 | 2,250,496 | 1,615,568 | 1,321,122 | 2,854,246 | 4,035,481 | 715,070 | 1,632,849 | ||||||||||||||||||||||||
Beginning 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 | ||||||||||||||||||||||||
Ending shares outstanding | 9,599,872 | 6,547,328 | 7,833,433 | 6,217,865 | 22,512,680 | 19,658,434 | 18,719,356 | 18,004,286 | ||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||
Shares sold | 133,046 | 573,385 | 267,305 | 666,896 | 565,675 | 1,380,156 | 234,961 | 1,099,903 | ||||||||||||||||||||||||
Dividends and distributions reinvested | 3,141 | 20,183 | 8,848 | 22,829 | 20,039 | 41,583 | 8,122 | 15,130 | ||||||||||||||||||||||||
Shares repurchased | (92,488 | ) | (188,408 | ) | (203,009 | ) | (287,268 | ) | (359,958 | ) | (727,441 | ) | (162,127 | ) | (697,823 | ) | ||||||||||||||||
Net increase | 43,699 | 405,160 | 73,144 | 402,457 | 225,756 | 694,298 | 80,956 | 417,210 | ||||||||||||||||||||||||
Beginning shares outstanding | 768,216 | 363,056 | 996,558 | 594,101 | 2,248,938 | 1,554,640 | 1,144,057 | 726,847 | ||||||||||||||||||||||||
Ending shares outstanding | 811,915 | 768,216 | 1,069,702 | 996,558 | 2,474,694 | 2,248,938 | 1,225,013 | 1,144,057 | ||||||||||||||||||||||||
D-9
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
PL Portfolio Optimization | PL Money | |||||||||||||||
Aggressive Fund | Market Fund | |||||||||||||||
Period ended | Year ended | Period ended | Year ended | |||||||||||||
9/30/2010 | 3/31/2010 | 9/30/2010 | 3/31/2010 | |||||||||||||
Class A | ||||||||||||||||
Shares sold | 1,641,133 | 2,980,430 | 59,766,177 | 52,775,972 | ||||||||||||
Dividends and distributions reinvested | 66,115 | 97,909 | — | 9,957 | ||||||||||||
Shares repurchased | (1,030,857 | ) | (2,484,648 | ) | (37,818,958 | ) | (73,530,933 | ) | ||||||||
Net increase (decrease) | 676,391 | 593,691 | 21,947,219 | (20,745,004 | ) | |||||||||||
Beginning shares outstanding | 9,258,763 | 8,665,072 | 34,679,729 | 55,424,733 | ||||||||||||
Ending shares outstanding | 9,935,154 | 9,258,763 | 56,626,948 | 34,679,729 | ||||||||||||
Class B | ||||||||||||||||
Shares sold | 252,610 | 487,134 | ||||||||||||||
Dividends and distributions reinvested | 14,313 | 8,236 | ||||||||||||||
Shares repurchased | (268,732 | ) | (429,310 | ) | ||||||||||||
Net increase (decrease) | (1,809 | ) | 66,060 | |||||||||||||
Beginning shares outstanding | 2,749,973 | 2,683,913 | ||||||||||||||
Ending shares outstanding | 2,748,164 | 2,749,973 | ||||||||||||||
Class C | ||||||||||||||||
Shares sold | 1,373,120 | 2,128,529 | ||||||||||||||
Dividends and distributions reinvested | 31,581 | 18,127 | ||||||||||||||
Shares repurchased | (1,487,125 | ) | (2,117,305 | ) | ||||||||||||
Net increase (decrease) | (82,424 | ) | 29,351 | |||||||||||||
Beginning shares outstanding | 6,520,769 | 6,491,418 | ||||||||||||||
Ending shares outstanding | 6,438,345 | 6,520,769 | ||||||||||||||
Class R | ||||||||||||||||
Shares sold | 103,502 | 389,684 | ||||||||||||||
Dividends and distributions reinvested | 2,875 | 4,954 | ||||||||||||||
Shares repurchased | (72,493 | ) | (281,783 | ) | ||||||||||||
Net increase | 33,884 | 112,855 | ||||||||||||||
Beginning shares outstanding | 419,121 | 306,266 | ||||||||||||||
Ending shares outstanding | 453,005 | 419,121 | ||||||||||||||
12. 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.
D-10
PACIFIC LIFE FUNDS
DISCLOSURE OF FUND EXPENSES
(Unaudited)
(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 April 1, 2010 to September 30, 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 09/30/10” 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 04/01/10-09/30/10” 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 April 1, 2010 to September 30, 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 04/01/10-09/30/10.”
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 | 04/01/10 - | |||||||||||||
04/01/10 | 09/30/10 | Ratio | 09/30/10 | |||||||||||||
PL Portfolio Optimization Conservative (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,038.30 | 0.43 | % | $ | 2.20 | ||||||||
Class B | 1,000.00 | 1,034.00 | 1.17 | % | 5.97 | |||||||||||
Class C | 1,000.00 | 1,034.20 | 1.17 | % | 5.97 | |||||||||||
Class R | 1,000.00 | 1,036.80 | 0.66 | % | 3.37 | |||||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,022.91 | 0.43 | % | $ | 2.18 | ||||||||
Class B | 1,000.00 | 1,019.20 | 1.17 | % | 5.92 | |||||||||||
Class C | 1,000.00 | 1,019.20 | 1.17 | % | 5.92 | |||||||||||
Class R | 1,000.00 | 1,021.76 | 0.66 | % | 3.35 | |||||||||||
PL Portfolio Optimization Moderate- Conservative (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,028.90 | 0.41 | % | $ | 2.09 | ||||||||
Class B | 1,000.00 | 1,025.40 | 1.16 | % | 5.89 | |||||||||||
Class C | 1,000.00 | 1,025.50 | 1.16 | % | 5.89 | |||||||||||
Class R | 1,000.00 | 1,028.30 | 0.66 | % | 3.36 | |||||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,023.01 | 0.41 | % | $ | 2.08 | ||||||||
Class B | 1,000.00 | 1,019.25 | 1.16 | % | 5.87 | |||||||||||
Class C | 1,000.00 | 1,019.25 | 1.16 | % | 5.87 | |||||||||||
Class R | 1,000.00 | 1,021.76 | 0.66 | % | 3.35 | |||||||||||
PL Portfolio Optimization Moderate (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,025.00 | 0.41 | % | $ | 2.08 | ||||||||
Class B | 1,000.00 | 1,020.50 | 1.16 | % | 5.88 | |||||||||||
Class C | 1,000.00 | 1,020.60 | 1.16 | % | 5.88 | |||||||||||
Class R | 1,000.00 | 1,023.50 | 0.65 | % | 3.30 | |||||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,023.01 | 0.41 | % | $ | 2.08 | ||||||||
Class B | 1,000.00 | 1,019.25 | 1.16 | % | 5.87 | |||||||||||
Class C | 1,000.00 | 1,019.25 | 1.16 | % | 5.87 | |||||||||||
Class R | 1,000.00 | 1,021.81 | 0.65 | % | 3.29 | |||||||||||
PL Portfolio Optimization Moderate- Aggressive (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,019.70 | 0.40 | % | $ | 2.03 | ||||||||
Class B | 1,000.00 | 1,016.10 | 1.15 | % | 5.81 | |||||||||||
Class C | 1,000.00 | 1,015.20 | 1.15 | % | 5.81 | |||||||||||
Class R | 1,000.00 | 1,018.10 | 0.65 | % | 3.29 | |||||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,023.06 | 0.40 | % | $ | 2.03 | ||||||||
Class B | 1,000.00 | 1,019.30 | 1.15 | % | 5.82 | |||||||||||
Class C | 1,000.00 | 1,019.30 | 1.15 | % | 5.82 | |||||||||||
Class R | 1,000.00 | 1,021.81 | 0.65 | % | 3.29 |
See explanation of references on page E-2
E-1
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 | 04/01/10 - | |||||||||||||
04/01/10 | 09/30/10 | Ratio | 09/30/10 | |||||||||||||
PL Portfolio Optimization Aggressive (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,013.70 | 0.40 | % | $ | 2.02 | ||||||||
Class B | 1,000.00 | 1,011.10 | 1.15 | % | 5.80 | |||||||||||
Class C | 1,000.00 | 1,011.00 | 1.15 | % | 5.80 | |||||||||||
Class R | 1,000.00 | 1,013.00 | 0.65 | % | 3.28 | |||||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,023.06 | 0.40 | % | $ | 2.03 | ||||||||
Class B | 1,000.00 | 1,019.30 | 1.15 | % | 5.82 | |||||||||||
Class C | 1,000.00 | 1,019.30 | 1.15 | % | 5.82 | |||||||||||
Class R | 1,000.00 | 1,021.81 | 0.65 | % | 3.29 | |||||||||||
PL Money Market Fund | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,000.00 | 0.27 | % | $ | 1.35 | ||||||||
Hypothetical | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,023.71 | 0.27 | % | $ | 1.37 |
(1) | Expenses paid during the six-month 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. |
E-2
PACIFIC LIFE FUNDS
WHERE TO GO FOR MORE INFORMATION
(Unaudited)
(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 the fund 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.
How to obtain Information
The Trust’s prospectus and SAI (including Proxy Voting Policies) 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 |
E-3
[THIS PAGE INTENTIONALLY LEFT BLANK]
PACIFIC LIFE FUNDS
SEMI-ANNUAL REPORTS
as of September 30, 2010
SEMI-ANNUAL REPORTS
as of September 30, 2010
Pacific Life Funds
Mailing address:
P.O. Box 9768
Providence, Rl 02940-9768
P.O. Box 9768
Providence, Rl 02940-9768
Form No. 3167-10A
![(PACIFIC LIFE FUNDS LOGO)](https://capedge.com/proxy/N-CSRS/0000950123-10-111499/g07036g0703301.gif)
Underlying Funds
Semi-Annual Report
As of September 30, 2010
Semi-Annual Report
As of September 30, 2010
TABLE OF CONTENTS
PACIFIC LIFE FUNDS | ||||
Schedules of Investments and Notes | A-1 | |||
Financial Statements: | ||||
Statements of Assets and Liabilities | B-1 | |||
Statements of Operations | B-7 | |||
Statements of Changes in Net Assets | B-10 | |||
Statement of Cash Flows | B-15 | |||
Financial Highlights | C-1 | |||
Notes to Financial Statements | D-1 | |||
Disclosure of Fund Expenses | E-1 | |||
Approval of Investment Advisory Agreement and Fund Management Agreements | E-3 | |||
Where to Go for More Information | E-6 |
PACIFIC LIFE FUNDS
PL FLOATING RATE LOAN FUND
Schedule of Investments
September 30, 2010 (Unaudited)
PL FLOATING RATE LOAN FUND
Schedule of Investments
September 30, 2010 (Unaudited)
Principal | ||||||||
Amount | Value | |||||||
CORPORATE BONDS & NOTES — 1.5% | ||||||||
Materials — 1.5% | ||||||||
Lyondell Chemical Co | ||||||||
11.000% due 05/01/18 | $ | 908,657 | $ | 1,009,745 | ||||
Total Corporate Bonds & Notes (Cost $937,058) | 1,009,745 | |||||||
SENIOR LOAN NOTES — 93.9% | ||||||||
Consumer Discretionary — 40.0% | ||||||||
Affinion Group Inc Tranche B | ||||||||
5.000% due 10/09/16 § | 997,494 | 981,284 | ||||||
Allison Transmission Inc | ||||||||
3.020% due 08/07/14 § | 493,993 | 464,817 | ||||||
ARAMARK Corp (Non-Extending) | ||||||||
2.164% due 01/26/14 § | 838,203 | 798,127 | ||||||
Facility Deposits (Non-Extending Letter of Credit) | ||||||||
0.106% due 01/26/14 § | 67,524 | 64,296 | ||||||
Asurion Corp (1st Lien) 3.278% due 07/03/14 § | 993,741 | 951,507 | ||||||
Catalina Marketing Corp (Initial Term Loan) | ||||||||
3.006% due 10/01/14 § | 949,581 | 925,248 | ||||||
Cequel Communications LLC due 11/05/13 § ∞ | 1,000,000 | 974,107 | ||||||
Charter Communications Operating LLC | ||||||||
Term B-1 | ||||||||
2.260% due 03/06/14 § | 994,885 | 972,807 | ||||||
Cumulus Media Inc (Replacement Term Loan) | ||||||||
4.006% due 06/11/14 § | 1,024,776 | 925,501 | ||||||
Dana Holding Corp (Advance) | ||||||||
4.687% due 01/30/15 § | 901,354 | 893,629 | ||||||
Dollar General Corp Tranche B-1 | ||||||||
3.108% due 07/07/14 § | 426,848 | 419,978 | ||||||
Education Management LLC Tranche C | ||||||||
2.063% due 06/01/13 § | 997,343 | 923,088 | ||||||
Entercom Radio LLC Term A | ||||||||
2.320% due 06/29/12 § | 439,430 | 424,782 | ||||||
Federal-Mogul Corp | ||||||||
Tranche B | ||||||||
2.198% due 12/29/14 § | 655,423 | 576,055 | ||||||
Tranche C | ||||||||
2.198% due 12/28/15 § | 334,399 | 293,906 | ||||||
Ford Motor Co Tranche B-1 | ||||||||
3.030% due 12/15/13 § | 921,427 | 905,014 | ||||||
Isle of Capri Casinos Inc (Initial Term Loan) | ||||||||
5.000% due 11/25/13 § | 284,684 | 273,368 | ||||||
Term A (Delayed Draw Term Loan) | ||||||||
5.000% due 11/25/13 § | 100,154 | 96,173 | ||||||
Term B (Delayed Draw Term Loan) | ||||||||
5.000% due 11/25/13 § | 113,874 | 109,347 | ||||||
Language Line LLC Tranche B | ||||||||
5.500% due 11/04/15 § | 498,744 | 490,951 | ||||||
Las Vegas Sands LLC (Delayed Draw I Term Loan Extending) | ||||||||
3.030% due 11/23/16 § | 108,889 | 99,186 | ||||||
Tranche B Extending | ||||||||
3.030% due 11/23/16 § | 538,890 | 490,913 | ||||||
MCC Iowa LLC Tranche E | ||||||||
4.500% due 10/23/17 § | 997,500 | 982,538 | ||||||
Metro-Goldwyn-Mayer Inc Tranche B | ||||||||
20.500% due 04/09/12 § Ω | 1,494,825 | 659,592 | ||||||
Michaels Stores Inc | ||||||||
Term B-1 | ||||||||
2.634% due 10/31/13 § | 201,022 | 194,627 | ||||||
Term B-2 | ||||||||
4.884% due 07/31/16 § | 743,297 | 730,186 | ||||||
National Bedding Co LLC (1st Lien) | ||||||||
2.380% due 02/28/13 § | 500,000 | 480,937 | ||||||
Nielsen Finance LLC Term A (Dollar Term Loan) | ||||||||
2.258% due 08/09/13 § | 1,000,000 | 966,038 | ||||||
Orbitz Worldwide Inc | ||||||||
due 07/25/14 § ∞ | 500,000 | 477,750 | ||||||
OSI Restaurant Partners LLC | ||||||||
due 06/14/14 § ∞ | 457,092 | 420,182 | ||||||
(Pre-Funded Revolving Credit Loan) | ||||||||
due 06/14/13 § ∞ | 41,547 | 38,192 | ||||||
Penn National Gaming Inc Term B | ||||||||
2.051% due 10/03/12 § | 1,000,000 | 982,688 | ||||||
Protection One Alarm Monitoring Inc | ||||||||
6.000% due 06/04/16 § | 500,000 | 497,500 | ||||||
Regal Cinemas Corp | ||||||||
3.789% due 11/17/16 § | 997,494 | 990,168 | ||||||
Sabre Inc (Initial Term Loan) | ||||||||
2.335% due 09/30/14 § | 981,786 | 909,840 | ||||||
The Neiman Marcus Group Inc | ||||||||
2.294% due 04/06/13 § | 355,058 | 344,688 | ||||||
The Pep Boys — Manny, Moe and Jack | ||||||||
2.300% due 10/25/13 § | 233,834 | 223,019 | ||||||
The Weather Channel Holding Corp (Replacement Term Loan) | ||||||||
5.000% due 09/14/15 § | 242,788 | 243,916 | ||||||
Travelport LLC (Delayed Draw Term Loan) | ||||||||
2.760% due 08/23/13 § | 997,423 | 962,331 | ||||||
Universal City Development Partners Ltd | ||||||||
5.500% due 11/03/14 § | 994,975 | 1,000,568 | ||||||
Univision Communications Inc (Initial Term Loan) | ||||||||
2.506% due 09/29/14 § | 1,732,621 | 1,522,246 | ||||||
VML US Finance LLC Term B (Delayed Draw Project Loan) | ||||||||
4.780% due 05/25/12 § | 151,743 | 150,356 | ||||||
(Funded Project Loan) | ||||||||
4.780% due 04/11/13 § | 677,157 | 670,967 | ||||||
WideOpenWest Finance LLC Series A (New Term Loan) | ||||||||
6.756% due 06/30/14 § | 493,773 | 483,487 | ||||||
26,985,900 | ||||||||
Consumer Staples — 4.1% | ||||||||
DSW Holdings Inc | ||||||||
4.256% due 03/02/12 § | 500,000 | 479,166 | ||||||
KIK Custom Products Inc (2nd Lien) | ||||||||
5.289% due 12/01/14 § | 500,000 | 335,625 | ||||||
NBTY Inc Term B | ||||||||
due 10/01/17 § ∞ | 150,000 | 151,741 | ||||||
Pinnacle Foods Finance LLC | ||||||||
2.758% due 04/02/14 § | 500,000 | 484,610 | ||||||
Rite Aid Corp Tranche 2 | ||||||||
2.010% due 06/04/14 § | 1,492,347 | 1,330,481 | ||||||
2,781,623 | ||||||||
Energy — 1.4% | ||||||||
Big West Oil LLC | ||||||||
12.000% due 07/23/15 § | 451,389 | 458,536 | ||||||
Citgo Petroleum Corp Term B | ||||||||
8.000% due 06/24/15 § | 493,750 | 496,459 | ||||||
954,995 | ||||||||
See Notes to Financial Statements | A-1 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL FLOATING RATE LOAN FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL FLOATING RATE LOAN FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
Principal | ||||||||
Amount | Value | |||||||
Financials — 4.1% | ||||||||
First Data Corp Tranche B-1 (Initial Term Loan) | ||||||||
3.006% due 09/24/14 § | $ | 527,211 | $ | 465,395 | ||||
HUB International Ltd (Delayed Draw Term Loan) | ||||||||
2.789% due 06/13/14 § | 178,675 | 169,295 | ||||||
(Initial Term Loan) | ||||||||
2.789% due 06/13/14 § | 794,884 | 753,153 | ||||||
Nuveen Investments Inc (1st Lien) | ||||||||
3.371% due 11/13/14 § | 1,500,000 | 1,352,578 | ||||||
2,740,421 | ||||||||
Health Care — 11.7% | ||||||||
Bausch & Lomb Inc (Delayed Draw Term Loan) | ||||||||
3.506% due 04/24/15 § | 97,360 | 93,714 | ||||||
(Parent Term Loan) | ||||||||
3.527% due 04/24/15 § | 401,479 | 386,446 | ||||||
Biomet Inc (Dollar Term Loan) | ||||||||
3.282% due 03/25/15 § | 997,429 | 969,060 | ||||||
CHS/Community Health Systems Inc (Delayed Draw Term Loan) | ||||||||
2.549% due 07/25/14 § | 48,671 | 46,237 | ||||||
(Funded Term Loan) | ||||||||
2.549% due 07/25/14 § | 946,837 | 899,493 | ||||||
DJO Finance LLC | ||||||||
3.256% due 05/20/14 § | 498,718 | 478,769 | ||||||
HCA Inc Tranche B-1 | ||||||||
2.539% due 11/18/13 § | 1,581,925 | 1,524,936 | ||||||
Health Management Associates Inc Term B | ||||||||
2.039% due 02/28/14 § | 997,245 | 943,955 | ||||||
IMS Health Inc Tranche B (Dollar Term Loan) | ||||||||
5.250% due 02/26/16 § | 495,120 | 498,575 | ||||||
InVentiv Health Inc Term B | ||||||||
6.500% due 08/04/16 § | 500,000 | 501,328 | ||||||
Multiplan Merger Corp | ||||||||
6.500% due 08/12/17 § | 700,000 | 701,663 | ||||||
Warner Chilcott Co LLC | ||||||||
Term A | ||||||||
6.000% due 10/30/14 § | 313,559 | 312,579 | ||||||
Term B-1 | ||||||||
6.250% due 04/30/15 § | 151,358 | 151,602 | ||||||
Term B-2 | ||||||||
6.250% due 04/30/15 § | 252,039 | 252,445 | ||||||
Term B-4 | ||||||||
6.500% due 02/20/16 § | 30,637 | 30,815 | ||||||
WC Luxco SARL | ||||||||
Term B-3 | ||||||||
6.500% due 02/20/16 § | 94,363 | 94,902 | ||||||
7,886,519 | ||||||||
Industrials — 5.2% | ||||||||
AWAS Capital Inc (1st Lien) | ||||||||
2.063% due 03/21/13 § | 290,051 | 287,151 | ||||||
Brand Energy & Infrastructure Services Inc (2nd Lien) | ||||||||
6.425% due 02/07/15 § | 500,000 | 437,500 | ||||||
Delta Air Lines Inc (2nd Lien) | ||||||||
3.507% due 04/30/14 § | 496,154 | 468,245 | ||||||
Hawker Beechcraft Acquisition Co LLC | ||||||||
2.265% due 03/26/14 § | 937,858 | 760,512 | ||||||
(Facility Deposit) | ||||||||
2.289% due 03/26/14 § | 56,070 | 45,467 | ||||||
John Maneely Co | ||||||||
due 12/09/13 § ∞ | 500,000 | 488,250 | ||||||
Pinafore LLC Term B | ||||||||
due 09/27/16 § ∞ | 575,000 | 580,928 | ||||||
Sensata Technologies BV | ||||||||
2.231% due 04/27/13 § | 498,698 | 480,869 | ||||||
3,548,922 | ||||||||
Information Technology — 5.8% | ||||||||
Brocade Communication Systems Inc (Borrowing) | ||||||||
7.000% due 10/07/13 § | 185,937 | 187,331 | ||||||
CCS Inc | ||||||||
3.256% due 11/14/14 § | 488,566 | 422,609 | ||||||
Fidelity National Information Services Inc Term B | ||||||||
5.250% due 07/18/16 § | 200,000 | 201,768 | ||||||
Freescale Semiconductor Inc (Extended Maturity Term Loan) | ||||||||
4.509% due 12/01/16 § | 996,782 | 913,717 | ||||||
Kronos Inc (2nd Lien) | ||||||||
6.039% due 06/11/15 § | 500,000 | 472,500 | ||||||
Spansion LLC | ||||||||
7.500% due 02/09/15 § | 500,000 | 499,688 | ||||||
SSI Investments II Ltd | ||||||||
6.500% due 02/13/17 § | 498,751 | 503,530 | ||||||
SunGard Data Systems Inc Tranche B | ||||||||
4.038% due 02/28/16 § | 733,287 | 721,027 | ||||||
3,922,170 | ||||||||
Materials — 8.3% | ||||||||
Georgia-Pacific LLC | ||||||||
Term B (Additional Loan) | ||||||||
2.298% due 12/20/12 § | 997,409 | 993,046 | ||||||
Graphic Packaging International Inc Term B | ||||||||
due 05/16/14 § ∞ | 1,000,000 | 974,938 | ||||||
Huntsman International LLC Term B (Dollar Term Loan) | ||||||||
1.917% due 04/19/14 § | 1,000,000 | 958,333 | ||||||
Ineos US Finance LLC | ||||||||
Term B-2 | ||||||||
due 12/16/13 § ∞ | 242,629 | 243,387 | ||||||
Term C-2 | ||||||||
due 12/16/14 § ∞ | 257,371 | 258,176 | ||||||
Nalco Co | ||||||||
6.500% due 05/13/16 § | 493,750 | 493,801 | ||||||
Smurfit-Stone Container Enterprises Inc (Exit Term Loan) | ||||||||
6.750% due 02/22/16 § | 498,750 | 502,699 | ||||||
Solutia Inc | ||||||||
4.750% due 03/17/17 § | 240,625 | 241,414 | ||||||
TPC Group LLC Term B | ||||||||
2.968% due 06/27/13 § | 161,248 | 160,408 | ||||||
(Incremental Term Loan) | ||||||||
2.970% due 06/27/13 § | 821,201 | 816,924 | ||||||
5,643,126 | ||||||||
Telecommunication Services — 5.5% | ||||||||
Alaska Communications Systems Holdings Inc (Incremental Loan) | ||||||||
2.039% due 02/01/12 § | 500,000 | 490,833 | ||||||
Digicel International Finance Limited | ||||||||
Tranche A-T&T | ||||||||
2.500% due 09/30/12 § | 300,024 | 294,399 | ||||||
Tranche A | ||||||||
2.813% due 03/30/12 § | 550,049 | 539,736 | ||||||
Intelsat Corp | ||||||||
Tranche B-2-A (Incremental Term Loan) | ||||||||
3.033% due 01/03/14 § | 333,402 | 321,706 | ||||||
Tranche B-2-B (Incremental Term Loan) | ||||||||
3.033% due 01/03/14 § | 333,299 | 321,607 | ||||||
Tranche B-2-C (Incremental Term Loan) | ||||||||
3.033% due 01/03/14 § | 333,299 | 321,607 |
See Notes to Financial Statements | A-2 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL FLOATING RATE LOAN FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL FLOATING RATE LOAN FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
Principal | ||||||||
Amount | Value | |||||||
Telesat Canada | ||||||||
Term I (US Term Loan) | ||||||||
3.260% due 10/31/14 § | $ | 459,270 | $ | 448,219 | ||||
Term II (US Term Loan) | ||||||||
3.260% due 10/31/14 § | 39,449 | 38,500 | ||||||
UPC Financing Partnership Facility X | ||||||||
4.251% due 04/16/17 § | 1,000,000 | 972,188 | ||||||
3,748,795 | ||||||||
Utilities — 7.8% | ||||||||
Calpine Corp (1st Priority) | ||||||||
3.165% due 03/29/14 § | 110,048 | 107,733 | ||||||
Coleto Creek Power LP (2nd Lien) | ||||||||
4.256% due 06/28/13 § | 957,500 | 773,979 | ||||||
Dynegy Holdings Inc (Facility Term Loan) | ||||||||
4.010% due 04/02/13 § | 1,388,246 | 1,375,123 | ||||||
(Tranche B) | ||||||||
4.010% due 04/02/13 § | 110,896 | 109,848 | ||||||
New Development Holdings LLC | ||||||||
7.000% due 06/08/17 § | 872,813 | 888,768 | ||||||
NRG Energy Inc (Extended Maturity Term Loan) | ||||||||
3.539% due 08/31/15 § | 997,500 | 997,500 | ||||||
Texas Competitive Electric Holdings Co LLC | ||||||||
Tranche B2 (Initial Term Loan) | ||||||||
3.923% due 10/10/14 § | 1,270,529 | 988,807 | ||||||
5,241,758 | ||||||||
Total Senior Loan Notes | ||||||||
(Cost $62,995,176) | 63,454,229 | |||||||
Shares | ||||||||
SHORT-TERM INVESTMENT — 9.8% | ||||||||
Money Market Fund — 9.8% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 6,610,065 | 6,610,065 | ||||||
Total Short-Term Investment (Cost $6,610,065) | 6,610,065 | |||||||
TOTAL INVESTMENTS — 105.2% (Cost $70,542,299) | 71,074,039 | |||||||
OTHER ASSETS & LIABILITIES, NET — (5.2%) | (3,544,084 | ) | ||||||
NET ASSETS — 100.0% | $ | 67,529,955 | ||||||
Notes to Schedule of Investments
(a) | As of September 30, 2010, the Fund was diversified as a percentage of net assets as follows: |
Consumer Discretionary | 40.0 | % | ||
Health Care | 11.7 | % | ||
Materials | 9.8 | % | ||
Short-Term Investment | 9.8 | % | ||
Utilities | 7.8 | % | ||
Information Technology | 5.8 | % | ||
Telecommunication Services | 5.5 | % | ||
Industrials | 5.2 | % | ||
Consumer Staples | 4.1 | % | ||
Financials | 4.1 | % | ||
Energy | 1.4 | % | ||
105.2 | % | |||
Other Assets & Liabilities, Net | (5.2 | %) | ||
100.0 | % | |||
(b) | As of September 30, 2010, percentage the Fund’s Standard & Poor’s quality ratings on its investments, as a percentage of total fixed income investments were as follows: |
BBB | 2.8 | % | ||
BB | 47.4 | % | ||
B | 42.0 | % | ||
CCC | 4.4 | % | ||
D | 1.0 | % | ||
Not Rated | 2.4 | % | ||
100.0 | % | |||
(c) | Senior loan notes with a total aggregate value of $659,592 or 1.0% of the net assets were in default as of September 30, 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 11 in Notes to Financial Statements) as of September 30, 2010: |
Level 2 | Level 3 | |||||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||||
September 30, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||||
Assets | Corporate Bonds & Notes | $ | 1,009,745 | $ | — | $ | 1,009,745 | $ | — | |||||||||||
Senior Loan Notes | 63,454,229 | — | 63,454,229 | — | ||||||||||||||||
Short-Term Investment | 6,610,065 | 6,610,065 | — | — | ||||||||||||||||
Total | $ | 71,074,039 | $ | 6,610,065 | $ | 64,463,974 | $ | — | ||||||||||||
See Notes to Financial Statements | A-3 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments
September 30, 2010 (Unaudited)
PL INFLATION MANAGED FUND
Schedule of Investments
September 30, 2010 (Unaudited)
Shares | Value | |||||||
CONVERTIBLE PREFERRED STOCKS — 0.1% | ||||||||
Financials — 0.1% | ||||||||
Wells Fargo & Co 7.500% | 100 | $ | 100,600 | |||||
Total Convertible Preferred Stocks (Cost $100,000) | 100,600 | |||||||
Principal | ||||||||
Amount | ||||||||
CORPORATE BONDS & NOTES — 15.5% | ||||||||
Consumer Discretionary — 0.4% | ||||||||
Pulte Homes Inc 7.875% due 08/01/11 | $ | 500,000 | 517,500 | |||||
Starwood Hotels & Resorts Worldwide Inc 6.250% due 02/15/13 | 300,000 | 320,625 | ||||||
838,125 | ||||||||
Consumer Staples — 0.3% | ||||||||
New Albertsons Inc | ||||||||
7.500% due 02/15/11 | 500,000 | 511,875 | ||||||
Energy — 0.1% | ||||||||
Petroleos Mexicanos (Mexico) | ||||||||
5.500% due 01/21/21 ~ | 100,000 | 107,000 | ||||||
Financials — 13.2% | ||||||||
American Express Bank FSB | ||||||||
0.386% due 05/29/12 § | 300,000 | 297,348 | ||||||
0.407% due 06/12/12 § | 500,000 | 495,234 | ||||||
American Express Credit Corp | ||||||||
5.875% due 05/02/13 | 200,000 | 220,296 | ||||||
7.300% due 08/20/13 | 210,000 | 241,554 | ||||||
American International Group Inc | ||||||||
8.175% due 05/15/58 § | 200,000 | 201,500 | ||||||
Banco Santander (Chile) | ||||||||
1.771% due 04/20/12 § ~ | 300,000 | 300,005 | ||||||
Bank of America Corp | ||||||||
0.826% due 06/11/12 § | GBP | 900,000 | 1,377,719 | |||||
Bank of Nova Scotia (Canada) | ||||||||
3.400% due 01/22/15 | $ | 100,000 | 106,950 | |||||
BNP Paribas/BNP Paribas U.S. Medium-Term | ||||||||
Note Program LLC (France) | ||||||||
2.125% due 12/21/12 | 200,000 | 203,780 | ||||||
Countrywide Financial Corp | ||||||||
5.800% due 06/07/12 | 400,000 | 425,105 | ||||||
Dexia Credit Local NY (France) | ||||||||
0.693% due 03/05/13 § ~ | 4,400,000 | 4,386,936 | ||||||
Ford Motor Credit Co LLC | ||||||||
7.250% due 10/25/11 | 500,000 | 525,006 | ||||||
7.500% due 08/01/12 | 600,000 | 637,170 | ||||||
General Electric Capital Corp | ||||||||
0.411% due 12/20/13 § | 200,000 | 194,322 | ||||||
General Motors Acceptance Corp | ||||||||
6.000% due 12/15/11 | 400,000 | 412,500 | ||||||
7.000% due 02/01/12 | 600,000 | 626,250 | ||||||
HBOS PLC (United Kingdom) | ||||||||
6.750% due 05/21/18 ~ | 300,000 | 301,847 | ||||||
Merrill Lynch & Co Inc | ||||||||
1.628% due 09/27/12 § | EUR | 1,000,000 | 1,320,195 | |||||
5.450% due 07/15/14 | $ | 300,000 | 324,414 | |||||
Metropolitan Life Global Funding I | ||||||||
5.125% due 04/10/13 ~ | 100,000 | 108,929 | ||||||
Morgan Stanley | ||||||||
1.188% due 11/29/13 § | EUR | 200,000 | 259,151 | |||||
1.222% due 04/13/16 § | 1,000,000 | 1,219,744 | ||||||
2.876% due 05/14/13 § | $ | 1,000,000 | 1,019,861 | |||||
SLM Corp | ||||||||
3.125% due 09/17/12 | EUR | 700,000 | 906,171 | |||||
Sun Life Financial Global Funding LP | ||||||||
0.784% due 10/06/13 § ~ | $ | 1,500,000 | 1,459,313 | |||||
The Goldman Sachs Group Inc | ||||||||
1.198% due 02/04/13 § | EUR | 1,500,000 | 1,982,536 | |||||
5.375% due 02/15/13 | 500,000 | 716,299 | ||||||
The Royal Bank of Scotland Group PLC | ||||||||
(United Kingdom) | ||||||||
2.759% due 08/23/13 § | $ | 700,000 | 714,732 | |||||
3.000% due 12/09/11 ~ | 200,000 | 205,378 | ||||||
4.875% due 03/16/15 | 400,000 | 421,367 | ||||||
UBS AG (Switzerland) | ||||||||
1.439% due 02/23/12 § | 1,100,000 | 1,108,072 | ||||||
Wachovia Corp | ||||||||
2.236% due 05/01/13 § | 700,000 | 720,899 | ||||||
23,440,583 | ||||||||
Health Care — 0.8% | ||||||||
Boston Scientific Corp | ||||||||
6.000% due 06/15/11 | 800,000 | 822,671 | ||||||
HCA Inc | ||||||||
7.250% due 09/15/20 | 600,000 | 643,500 | ||||||
1,466,171 | ||||||||
Industrials — 0.5% | ||||||||
International Lease Finance Corp | ||||||||
5.350% due 03/01/12 | 500,000 | 505,625 | ||||||
6.500% due 09/01/14 ~ | 100,000 | 107,750 | ||||||
6.750% due 09/01/16 ~ | 100,000 | 107,500 | ||||||
7.125% due 09/01/18 ~ | 200,000 | 216,500 | ||||||
937,375 | ||||||||
Telecommunication Services — 0.2% | ||||||||
British Telecommunications PLC (United Kingdom) | ||||||||
9.375% due 12/15/10 § | 300,000 | 304,753 | ||||||
Total Corporate Bonds & Notes (Cost $27,293,399) | 27,605,882 | |||||||
MORTGAGE-BACKED SECURITIES — 5.5% | ||||||||
Collateralized Mortgage Obligations — Commercial — 0.2% | ||||||||
JPMorgan Chase Commercial Mortgage Securities Corp | ||||||||
5.336% due 05/15/47 “ | 110,000 | 114,591 | ||||||
Morgan Stanley Capital I | ||||||||
5.880% due 06/11/49 “ § | 100,000 | 107,140 | ||||||
Wachovia Bank Commercial Mortgage Trust | ||||||||
5.418% due 01/15/45 “ § | 210,000 | 226,978 | ||||||
448,709 | ||||||||
Collateralized Mortgage Obligations — Residential — 5.3% | ||||||||
Arkle Master Issuer PLC (United Kingdom) | ||||||||
1.519% due 05/17/60 “ § ~ | 500,000 | 495,878 | ||||||
Bear Stearns Adjustable Rate Mortgage Trust | ||||||||
2.300% due 08/25/35 “ § | 35,120 | 33,732 | ||||||
2.560% due 08/25/35 “ § | 59,888 | 56,810 | ||||||
2.760% due 03/25/35 “ § | 119,585 | 114,258 | ||||||
2.934% due 03/25/35 “ § | 37,887 | 36,407 | ||||||
3.458% due 01/25/35 “ § | 3,417,016 | 3,309,938 |
See Notes to Financial Statements | A-4 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
Principal | ||||||||
Amount | Value | |||||||
Citigroup Mortgage Loan Trust Inc | ||||||||
2.510% due 08/25/35 “ § | $ | 54,043 | $ | 50,946 | ||||
2.560% due 08/25/35 “ § | 45,939 | 42,898 | ||||||
Countrywide Home Loan Mortgage | ||||||||
Pass-Through Trust | ||||||||
0.596% due 06/25/35 “ § ~ | 37,516 | 32,023 | ||||||
4.680% due 01/19/34 “ § | 169,919 | 167,220 | ||||||
Fannie Mae | ||||||||
0.606% due 07/25/37 “ § | 1,001,051 | 1,000,712 | ||||||
0.636% due 07/25/37 “ § | 938,910 | 939,459 | ||||||
0.696% due 05/25/36 “ § | 642,098 | 643,654 | ||||||
0.701% due 02/25/37 “ § | 203,180 | 202,910 | ||||||
GSR Mortgage Loan Trust | ||||||||
2.923% due 09/25/35 “ § | 90,027 | 86,346 | ||||||
MLCC Mortgage Investors Inc | ||||||||
2.279% due 12/25/34 “ § | 257,243 | 246,156 | ||||||
New York Mortgage Trust Inc | ||||||||
5.462% due 05/25/36 “ § | 700,000 | 553,242 | ||||||
Residential Accredit Loans Inc | ||||||||
0.436% due 06/25/46 “ § | 178,031 | 71,187 | ||||||
Structured Asset Mortgage Investments Inc | ||||||||
0.466% due 05/25/46 “ § | 159,280 | 86,489 | ||||||
Wells Fargo Mortgage-Backed Securities Trust | ||||||||
2.931% due 10/25/35 “ § | 1,400,000 | 1,189,019 | ||||||
9,359,284 | ||||||||
Total Mortgage-Backed Securities (Cost $9,435,885) | 9,807,993 | |||||||
ASSET-BACKED SECURITIES — 2.9% | ||||||||
Aames Mortgage Investment Trust | ||||||||
0.546% due 10/25/35 “ § | 278,106 | 276,694 | ||||||
Ally Auto Receivables Trust | ||||||||
1.320% due 03/15/12 “ ~ | 677,511 | 679,453 | ||||||
AMMC CLO (Cayman) | ||||||||
0.526% due 08/08/17 “ § ~ | 200,000 | 191,270 | ||||||
ARES CLO Funds (Cayman) | ||||||||
0.520% due 03/12/18 “ § ~ | 494,669 | 470,856 | ||||||
Asset Backed Funding Certificates | ||||||||
0.736% due 06/25/35 “ § | 1,449,731 | 1,428,416 | ||||||
First Franklin Mortgage Loan Asset-Backed Certificates | ||||||||
0.306% due 11/25/36 “ § | 72,000 | 71,186 | ||||||
Ford Credit Auto Owner Trust | ||||||||
1.210% due 01/15/12 “ | 460,234 | 461,040 | ||||||
Freddie Mac Structured Pass-Through Securities | ||||||||
0.536% due 09/25/31 “ § | 2,826 | 2,677 | ||||||
Race Point CLO (Cayman) | ||||||||
0.926% due 05/15/15 “ § ~ | 901,570 | 863,683 | ||||||
Structured Asset Securities Corp | ||||||||
0.346% due 02/25/37 “ § | 349,913 | 345,917 | ||||||
Wells Fargo Home Equity Trust | ||||||||
0.506% due 12/25/35 “ § ~ | 19,949 | 19,913 | ||||||
Wood Street CLO BV (Netherlands) | ||||||||
1.388% due 03/29/21 “ § ~ ∆ | EUR | 248,182 | 304,480 | |||||
Total Asset-Backed Securities (Cost $5,087,238) | 5,115,585 | |||||||
U.S. TREASURY OBLIGATIONS — 98.4% | ||||||||
U.S. Treasury Inflation Protected Securities — 97.5% | ||||||||
0.625% due 04/15/13 ^ | $ | 1,959,717 | 2,014,223 | |||||
1.250% due 04/15/14 ^ | 2,060,260 | 2,169,711 | ||||||
1.250% due 07/15/20 ^ | 5,598,040 | 5,883,630 | ||||||
1.375% due 07/15/18 ^ | 606,594 | 650,240 | ||||||
1.375% due 01/15/20 ^ | 4,435,860 | 4,723,153 | ||||||
1.625% due 01/15/15 ^ ‡ | 8,791,398 | 9,404,739 | ||||||
1.625% due 01/15/18 ^ | 1,560,960 | 1,695,471 | ||||||
1.750% due 01/15/28 ^ | 3,330,048 | 3,530,630 | ||||||
1.875% due 07/15/13 ^ | 3,917,100 | 4,166,510 | ||||||
1.875% due 07/15/15 ^ | 9,526,970 | 10,368,764 | ||||||
1.875% due 07/15/19 ^ | 7,759,828 | 8,617,048 | ||||||
2.000% due 04/15/12 ^ | 1,181,785 | 1,223,794 | ||||||
2.000% due 01/15/14 ^ | 12,456,269 | 13,358,361 | ||||||
2.000% due 07/15/14 ^ | 1,734,855 | 1,878,386 | ||||||
2.000% due 01/15/16 ^ | 2,196,820 | 2,411,181 | ||||||
2.000% due 01/15/26 ^ | 4,283,799 | 4,711,511 | ||||||
2.125% due 01/15/19 ^ | 6,803,314 | 7,672,866 | ||||||
2.375% due 04/15/11 ^ ‡ | 2,196,720 | 2,225,038 | ||||||
2.375% due 01/15/17 ^ | 3,567,465 | 4,027,333 | ||||||
2.375% due 01/15/25 ^ | 6,858,460 | 7,886,159 | ||||||
2.375% due 01/15/27 ^ ‡ | 12,543,771 | 14,472,997 | ||||||
2.500% due 07/15/16 ^ | 12,749,074 | 14,434,632 | ||||||
2.500% due 01/15/29 ^ | 6,600,230 | 7,788,271 | ||||||
2.625% due 07/15/17 ^ | 10,309,004 | 11,908,692 | ||||||
3.000% due 07/15/12 ^ | 2,091,580 | 2,222,793 | ||||||
3.375% due 01/15/12 ^ | 245,556 | 257,297 | ||||||
3.375% due 04/15/32 ^ | 184,233 | 248,715 | ||||||
3.500% due 01/15/11 ^ ‡ | 125,260 | 126,434 | ||||||
3.625% due 04/15/28 ^ | 4,812,004 | 6,436,431 | ||||||
3.875% due 04/15/29 ^ | 12,005,953 | 16,679,741 | ||||||
173,194,751 | ||||||||
U.S. Treasury Notes — 0.9% | ||||||||
3.375% due 11/15/19 | 800,000 | 862,125 | ||||||
3.625% due 08/15/19 | 700,000 | 770,000 | ||||||
1,632,125 | ||||||||
Total U.S. Treasury Obligations (Cost $168,070,766) | 174,826,876 | |||||||
FOREIGN GOVERNMENT BONDS & NOTES — 2.4% | ||||||||
Australian Government Bond (Australia) | ||||||||
3.000% due 09/20/25 | AUD | 1,100,000 | 1,174,966 | |||||
4.000% due 08/20/15 | 300,000 | 489,171 | ||||||
4.000% due 08/20/20 | 300,000 | 480,300 | ||||||
Canada Housing Trust (Canada) | ||||||||
2.450% due 12/15/15 ~ | CAD | 1,200,000 | 1,177,689 | |||||
Canadian Government Bond (Canada) | ||||||||
4.250% due 12/01/21 | 281,040 | 370,670 | ||||||
New South Wales Treasury Bond (Australia) | ||||||||
2.750% due 11/20/25 | AUD | 500,000 | 501,962 | |||||
Total Foreign Government Bonds & Notes (Cost $3,927,513) | 4,194,758 | |||||||
MUNICIPAL BONDS — 0.1% | ||||||||
Tobacco Settlement Finance Authority of WV ‘A’ | ||||||||
7.467% due 06/01/47 | $ | 95,000 | 73,791 | |||||
Tobacco Settlement Financing Corp of RI ‘A’ | ||||||||
6.000% due 06/01/23 | 65,000 | 65,809 | ||||||
Total Municipal Bonds (Cost $148,409) | 139,600 | |||||||
See Notes to Financial Statements | A-5 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
Shares | Value | |||||||
SHORT-TERM INVESTMENT — 0.3% | ||||||||
Money Market Fund — 0.3% | ||||||||
Blackrock Liquidity Funds Treasury Trust Fund Portfolio | 544,646 | $ | 544,646 | |||||
Total Short-Term Investment (Cost $544,646) | 544,646 | |||||||
TOTAL INVESTMENTS — 125.2% (Cost $214,607,856) | 222,335,940 | |||||||
OTHER ASSETS & LIABILITIES, NET — (25.2%) | (44,725,023 | ) | ||||||
NET ASSETS — 100.0% | $ | 177,610,917 | ||||||
Notes to Schedule of Investments
(a) | As of September 30, 2010, the Fund was diversified as a percentage of net assets as follows: |
U.S. Treasury Obligations | 98.4 | % | ||
Corporate Bonds & Notes | 15.5 | % | ||
Mortgage-Backed Securities | 5.5 | % | ||
Asset-Backed Securities | 2.9 | % | ||
Foreign Government Bonds & Notes | 2.4 | % | ||
Short-Term Investment | 0.3 | % | ||
Municipal Bonds | 0.1 | % | ||
Convertible Preferred Stocks | 0.1 | % | ||
125.2 | % | |||
Other Assets & Liabilities, Net | (25.2 | %) | ||
100.0 | % | |||
(b) | As of September 30, 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 | 84.3 | % | ||
AA | 3.9 | % | ||
A | 5.3 | % | ||
BBB | 2.6 | % | ||
BB | 0.9 | % | ||
B | 1.2 | % | ||
Not Rated | 1.8 | % | ||
100.0 | % | |||
(c) | As of September 30, 2010, 0.2% of the Fund’s net assets were reported illiquid by the portfolio manager under the Trust’s policy. | |
(d) | Open futures contracts outstanding as of September 30, 2010 were as follows: |
Number of | Notional | Unrealized | ||||||||||
Long Futures Outstanding | Contracts | Amount | Appreciation | |||||||||
3-Month Euribor (12/10) | 3 | EUR | 3,000,000 | $ | 613 | |||||||
Eurodollar (12/10) | 5 | $ | 5,000,000 | 1,188 | ||||||||
Eurodollar (03/11) | 13 | 13,000,000 | 8,375 | |||||||||
Eurodollar (03/12) | 2 | 2,000,000 | 862 | |||||||||
$ | 11,038 | |||||||||||
(e) | Forward foreign currency contracts outstanding as of September 30, 2010 were as follows: |
Principal | ||||||||||||||||||||
Contracts | Amount | Unrealized | ||||||||||||||||||
to Buy or | Covered by | Appreciation | ||||||||||||||||||
to Sell | Currency | Contracts | Expiration | Counterparty | (Depreciation) | |||||||||||||||
Sell | AUD | 98,000 | 10/10 | BRC | $ | (2,746 | ) | |||||||||||||
Sell | AUD | 186,000 | 10/10 | DUB | (14,581 | ) | ||||||||||||||
Sell | AUD | 20,482 | 10/10 | RBS | (1,725 | ) | ||||||||||||||
Buy | BRL | 151,840 | 10/10 | DUB | 4,527 | |||||||||||||||
Buy | BRL | 1,141,312 | 10/10 | HSB | 33,953 | |||||||||||||||
Sell | BRL | 1,181,144 | 10/10 | HSB | (30,538 | ) | ||||||||||||||
Sell | BRL | 112,008 | 10/10 | JPM | (3,794 | ) | ||||||||||||||
Buy | BRL | 350,100 | 12/10 | DUB | 4,145 | |||||||||||||||
Buy | BRL | 1,181,144 | 12/10 | HSB | 30,564 | |||||||||||||||
Sell | CAD | 1,478,000 | 11/10 | RBS | 8,873 | |||||||||||||||
Sell | CHF | 6,000 | 11/10 | CIT | (191 | ) | ||||||||||||||
Buy | CNY | 305,138 | 11/10 | BRC | (364 | ) | ||||||||||||||
Buy | CNY | 490,879 | 11/10 | CIT | (597 | ) | ||||||||||||||
Buy | CNY | 1,256,638 | 11/10 | DUB | (1,753 | ) | ||||||||||||||
Buy | CNY | 496,274 | 11/10 | MSC | (790 | ) | ||||||||||||||
Buy | CNY | 674,636 | 01/10 | DUB | 316 | |||||||||||||||
Buy | CNY | 980,000 | 01/11 | JPM | (78 | ) | ||||||||||||||
Buy | CNY | 663,980 | 01/11 | MSC | (558 | ) | ||||||||||||||
Sell | EUR | 3,173,000 | 10/10 | BRC | (257,001 | ) | ||||||||||||||
Sell | EUR | 212,000 | 11/10 | BRC | (8,151 | ) | ||||||||||||||
Sell | EUR | 1,860,000 | 11/10 | DUB | (152,585 | ) |
See Notes to Financial Statements | A-6 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
Principal | ||||||||||||||||||||
Contracts | Amount | Unrealized | ||||||||||||||||||
to Buy or | Covered by | Appreciation | ||||||||||||||||||
to Sell | Currency | Contracts | Expiration | Counterparty | (Depreciation) | |||||||||||||||
Sell | GBP | 1,156,000 | 12/10 | UBS | $ | (14,079 | ) | |||||||||||||
Buy | IDR | 4,652,000 | 11/10 | MSC | 2,706 | |||||||||||||||
Buy | IDR | 7,020,000 | 03/11 | CIT | 2,194 | |||||||||||||||
Buy | IDR | 7,023,000 | 03/11 | DUB | 2,259 | |||||||||||||||
Buy | IDR | 9,430,000 | 03/11 | JPM | 4,443 | |||||||||||||||
Sell | JPY | 84,121,000 | 11/10 | MSC | (8,430 | ) | ||||||||||||||
Buy | KRW | 206,043,828 | 11/10 | BRC | 9,445 | |||||||||||||||
Buy | KRW | 469,700,672 | 11/10 | CIT | 12,459 | |||||||||||||||
Buy | KRW | 100,037,000 | 11/10 | DUB | 2,172 | |||||||||||||||
Buy | KRW | 35,190,000 | 11/10 | GSC | 805 | |||||||||||||||
Buy | KRW | 294,113,500 | 11/10 | JPM | 5,335 | |||||||||||||||
Buy | KRW | 113,350,000 | 11/10 | JPM | (774 | ) | ||||||||||||||
Buy | KRW | 253,210,000 | 11/10 | MSC | 5,307 | |||||||||||||||
Buy | KRW | 79,650,000 | 11/10 | RBS | 4,312 | |||||||||||||||
Sell | KRW | 227,900,000 | 11/10 | RBS | 498 | |||||||||||||||
Buy | KRW | 114,630,000 | 01/11 | CIT | — | |||||||||||||||
Buy | KRW | 114,630,000 | 01/11 | DUB | — | |||||||||||||||
Buy | PHP | 4,406,000 | 11/10 | DUB | — | |||||||||||||||
$ | (364,422 | ) | ||||||||||||||||||
(f) | Transactions in written options for the six-month period ended September 30, 2010 were as follows: |
Notional | Notional | |||||||||||||||
Number of | Amount | Amount | ||||||||||||||
Contracts | in EUR | in $ | Premium | |||||||||||||
Outstanding, March 31, 2010 | 18 | — | 59,100,000 | $ | 445,261 | |||||||||||
Call Options Written | 19 | 1,200,000 | 22,400,000 | 98,394 | ||||||||||||
Put Options Written | 19 | 1,300,000 | 39,700,000 | 278,309 | ||||||||||||
Call Options Closed | — | — | (6,800,000 | ) | (27,436 | ) | ||||||||||
Put Options Closed | — | — | (3,800,000 | ) | (19,999 | ) | ||||||||||
Call Options Expired | (23 | ) | — | (22,400,000 | ) | (171,300 | ) | |||||||||
Put Options Expired | (23 | ) | — | (35,600,000 | ) | (272,504 | ) | |||||||||
Outstanding, September 30, 2010 | 10 | 2,500,000 | 52,600,000 | $ | 330,725 | |||||||||||
(g) | Premiums received and value of written options outstanding as of September 30, 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 | 0.900 | % | 12/15/10 | MSC | EUR | 1,200,000 | $ | 2,966 | $ | (3,044 | ) | |||||||||||||
Credit Default Swaptions Sell Protection (2) |
Exercise | Expiration | Counter- | Notional | |||||||||||||||||||||
Description | Rate | Date | party | Amount | Premium | Value | ||||||||||||||||||
Put — OTC ITRAXX Europe Index | 1.600 | % | 12/15/10 | MSC | EUR | 1,200,000 | $ | 3,123 | $ | (2,669 | ) | |||||||||||||
Put — OTC Dow Jones CDX IG15 Index | 1.700 | % | 03/16/11 | MSC | $ | 100,000 | 470 | (359 | ) | |||||||||||||||
Put — OTC ITRAXX Europe Index | 1.800 | % | 03/16/11 | MSC | EUR | 100,000 | 719 | (711 | ) | |||||||||||||||
$ | 4,312 | $ | (3,739 | ) | ||||||||||||||||||||
Total Credit Default Swaptions | $ | 7,278 | $ | (6,783 | ) | |||||||||||||||||||
(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. |
See Notes to Financial Statements | A-7 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
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 ∆ | 215.97 | Maximum of ((Inflation Adjustment — 1) - 2.500%) or $0 | 12/07/10 | RBS | $ | 1,200,000 | $ | 4,200 | $ | (9 | ) | |||||||||||||||||
Floor — OTC U.S. CPI Urban Consumers NSA | 215.97 | Maximum of (-1.000% — (Inflation Adjustment — 1)) or $0 | 12/14/10 | BNP | 1,200,000 | 5,160 | — | |||||||||||||||||||||
Floor — OTC U.S. CPI Urban Consumers NSA | 215.95 | Maximum of ((1+0.00%)10 - Inflation Adjustment) or $0 | 03/12/20 | CIT | 1,200,000 | 10,320 | (15,005 | ) | ||||||||||||||||||||
Floor — OTC U.S. CPI Urban Consumers NSA | 216.69 | Maximum of ((1+0.00%)10 - Inflation Adjustment) or $0 | 04/07/20 | CIT | 2,000,000 | 17,720 | (25,355 | ) | ||||||||||||||||||||
Floor — OTC U.S. CPI Urban Consumers NSA | 217.97 | Maximum of ((1+0.00%)10 - Inflation Adjustment) or $0 | 09/29/20 | CIT | 300,000 | 3,870 | (3,870 | ) | ||||||||||||||||||||
$ | 41,270 | $ | (44,239 | ) | ||||||||||||||||||||||||
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 5-Year Interest Rate Swap | Receive | 1.450 | % | 10/29/10 | DUB | $ | 3,200,000 | $ | 4,606 | $ | (5,924 | ) | ||||||||||||||||
Call — OTC 5-Year Interest Rate Swap | Receive | 1.450 | % | 10/29/10 | MSC | 3,500,000 | 7,350 | (6,480 | ) | |||||||||||||||||||
Call — OTC 5-Year Interest Rate Swap | Receive | 1.450 | % | 10/29/10 | UBS | 3,800,000 | 9,500 | (7,035 | ) | |||||||||||||||||||
Put — OTC 5-Year Interest Rate Swap | Pay | 1.800 | % | 10/29/10 | UBS | 3,800,000 | 7,600 | (2,666 | ) | |||||||||||||||||||
Put — OTC 5-Year Interest Rate Swap | Pay | 1.950 | % | 10/29/10 | CIT | 1,600,000 | 7,920 | (308 | ) | |||||||||||||||||||
Put — OTC 5-Year Interest Rate Swap | Pay | 1.950 | % | 10/29/10 | MSC | 3,500,000 | 12,600 | (674 | ) | |||||||||||||||||||
Put — OTC 5-Year Interest Rate Swap | Pay | 4.000 | % | 12/01/10 | RBS | 4,100,000 | 26,445 | — | ||||||||||||||||||||
Put — OTC 3-Year Interest Rate Swap | Pay | 3.000 | % | 06/18/12 | BRC | 3,800,000 | 34,352 | (20,359 | ) | |||||||||||||||||||
Put — OTC 3-Year Interest Rate Swap | Pay | 3.000 | % | 06/18/12 | CIT | 1,900,000 | 21,651 | (10,179 | ) | |||||||||||||||||||
Put — OTC 3-Year Interest Rate Swap | Pay | 3.000 | % | 06/18/12 | DUB | 1,000,000 | 11,177 | (5,358 | ) | |||||||||||||||||||
Put — OTC 3-Year Interest Rate Swap | Pay | 3.000 | % | 06/18/12 | RBS | 2,200,000 | 24,378 | (11,787 | ) | |||||||||||||||||||
Put — OTC 10-Year Interest Rate Swap | Pay | 10.000 | % | 07/10/12 | MSC | 200,000 | 1,320 | (55 | ) | |||||||||||||||||||
Put — OTC 10-Year Interest Rate Swap | Pay | 10.000 | % | 07/10/12 | RBS | 500,000 | 3,400 | (137 | ) | |||||||||||||||||||
Put — OTC 2-Year Interest Rate Swap | Pay | 2.250 | % | 09/24/12 | CIT | 600,000 | 4,087 | (4,009 | ) | |||||||||||||||||||
Put — OTC 2-Year Interest Rate Swap | Pay | 2.250 | % | 09/24/12 | MSC | 300,000 | 1,920 | (2,005 | ) | |||||||||||||||||||
Put — OTC 2-Year Interest Rate Swap | Pay | 2.250 | % | 09/24/12 | RBS | 12,600,000 | 101,115 | (84,197 | ) | |||||||||||||||||||
$ | 279,421 | $ | (161,173 | ) | ||||||||||||||||||||||||
Options on Exchange-Traded Futures Contracts |
Exercise | Expiration | Counter- | Number of | |||||||||||||||||||||
Description | Price | Date | party | Contracts | Premium | Value | ||||||||||||||||||
Call — CME Eurodollar Futures (12/10) | $ | 99.50 | 12/13/10 | CIT | 5 | $ | 1,206 | $ | (406 | ) | ||||||||||||||
Put — CME Eurodollar Futures (12/10) | 99.50 | 12/13/10 | CIT | 5 | 1,550 | (2,156 | ) | |||||||||||||||||
$ | 2,756 | $ | (2,562 | ) | ||||||||||||||||||||
Total Written Options | $ | 330,725 | $ | (214,757 | ) | |||||||||||||||||||
(h) | Swap agreements outstanding as of September 30, 2010 were as follows: | |
Credit Default Swaps on Corporate and Sovereign Issues — Buy Protection (1) |
Fixed Deal | Implied Credit | Upfront | Unrealized | |||||||||||||||||||||||||||||
Pay | Expiration | Counter- | Spread at | Notional | Premiums Paid | Appreciation | ||||||||||||||||||||||||||
Referenced Obligation | Rate | Date | party | 09/30/10 (3) | Amount (4) | Value (5) | (Received) | (Depreciation) | ||||||||||||||||||||||||
New Albertsons Inc 7.250% due 05/01/13 | (1.000 | %) | 03/20/11 | DUB | 1.937 | % | $ | 500,000 | $ | 5,354 | $ | 5,035 | $ | 319 | ||||||||||||||||||
Pulte Homes Inc 5.250% due 01/15/14 | (1.000 | %) | 09/20/11 | DUB | 1.660 | % | 500,000 | 3,067 | 1,858 | 1,209 | ||||||||||||||||||||||
Starwood Hotels & Resorts Worldwide Inc 6.750% due 05/15/18 | (1.000 | %) | 03/20/13 | DUB | 1.045 | % | 300,000 | 244 | 5,065 | (4,821 | ) | |||||||||||||||||||||
$ | 8,665 | $ | 11,958 | $ | (3,293 | ) | ||||||||||||||||||||||||||
See Notes to Financial Statements | A-8 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
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 | 09/30/10 (3) | Amount (4) | Value (5) | (Received) | (Depreciation) | ||||||||||||||||||||||||
General Electric Capital Corp | ||||||||||||||||||||||||||||||||
5.625% due 09/15/17 | 1.000 | % | 03/20/11 | MSC | 1.112 | % | $ | 1,600,000 | $ | (354 | ) | $ | (13,157 | ) | $ | 12,803 | ||||||||||||||||
ING Verzekeringen NV | ||||||||||||||||||||||||||||||||
4.000% due 09/18/13 | 1.400 | % | 06/20/11 | DUB | 1.657 | % | EUR | 300,000 | (584 | ) | — | (584 | ) | |||||||||||||||||||
Petrobras International | ||||||||||||||||||||||||||||||||
8.375% due 12/10/18 | 1.000 | % | 09/20/12 | DUB | 1.240 | % | $ | 100,000 | (441 | ) | (1,240 | ) | 799 | |||||||||||||||||||
American International Group Inc | ||||||||||||||||||||||||||||||||
6.250% due 05/01/36 | 1.950 | % | 03/20/13 | DUB | 1.637 | % | 1,200,000 | 9,756 | — | 9,756 | ||||||||||||||||||||||
France Government | ||||||||||||||||||||||||||||||||
4.250% due 04/25/19 | 0.250 | % | 06/20/15 | CIT | 0.761 | % | 800,000 | (18,599 | ) | (16,897 | ) | (1,702 | ) | |||||||||||||||||||
Republic of Brazil | ||||||||||||||||||||||||||||||||
12.250% due 03/06/30 | 1.000 | % | 06/20/15 | BRC | 1.099 | % | 800,000 | (3,370 | ) | (6,842 | ) | 3,472 | ||||||||||||||||||||
Republic of Italy | ||||||||||||||||||||||||||||||||
6.875% due 09/27/23 | 1.000 | % | 06/20/15 | DUB | 1.937 | % | 500,000 | (20,265 | ) | (12,003 | ) | (8,262 | ) | |||||||||||||||||||
United Kingdom GILT | ||||||||||||||||||||||||||||||||
4.250% due 06/07/32 ∆ | 1.000 | % | 06/20/15 | GSC | 0.610 | % | 1,600,000 | 29,087 | 17,606 | 11,481 | ||||||||||||||||||||||
Republic of Brazil | ||||||||||||||||||||||||||||||||
12.250% due 03/06/30 | 1.000 | % | 06/20/15 | HSB | 1.099 | % | 700,000 | (2,948 | ) | (7,024 | ) | 4,076 | ||||||||||||||||||||
$ | (7,718 | ) | $ | (39,557 | ) | $ | 31,839 | |||||||||||||||||||||||||
Total Credit Default Swaps | $ | 947 | $ | (27,599 | ) | $ | 28,546 | |||||||||||||||||||||||||
(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 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, in comparison to narrower 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 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) | ||||||||||||||||||||||||
France CPI Excluding Tobacco | BRC | Pay | 2.103 | % | 10/15/10 | EUR | 500,000 | $ | 22,901 | $ | (416 | ) | $ | 23,317 | ||||||||||||||||||
France CPI Excluding Tobacco ∆ | JPM | Pay | 2.261 | % | 07/14/11 | 500,000 | 31,438 | — | 31,438 | |||||||||||||||||||||||
France CPI Excluding Tobacco | JPM | Pay | 2.028 | % | 10/15/11 | 200,000 | 9,405 | — | 9,405 | |||||||||||||||||||||||
BRL — CDI Compounded | MSC | Pay | 10.115 | % | 01/02/12 | BRL | 1,300,000 | (25,269 | ) | (18,939 | ) | (6,330 | ) | |||||||||||||||||||
BRL — CDI Compounded | BRC | Pay | 10.680 | % | 01/02/12 | 800,000 | (4,878 | ) | (6,967 | ) | 2,089 | |||||||||||||||||||||
BRL — CDI Compounded | HSB | Pay | 11.140 | % | 01/02/12 | 500,000 | 5,238 | 1,918 | 3,320 | |||||||||||||||||||||||
BRL — CDI Compounded | MSC | Pay | 11.290 | % | 01/02/12 | 200,000 | (174 | ) | (212 | ) | 38 | |||||||||||||||||||||
BRL — CDI Compounded | HSB | Pay | 11.360 | % | 01/02/12 | 6,500,000 | 60,145 | 3,554 | 56,591 | |||||||||||||||||||||||
BRL — CDI Compounded | GSC | Pay | 11.670 | % | 01/02/12 | 200,000 | 3,410 | 1,619 | 1,791 | |||||||||||||||||||||||
BRL — CDI Compounded | HSB | Pay | 14.765 | % | 01/02/12 | 2,300,000 | 133,939 | 15,333 | 118,606 | |||||||||||||||||||||||
BRL — CDI Compounded | MER | Pay | 14.765 | % | 01/02/12 | 100,000 | 5,823 | 191 | 5,632 | |||||||||||||||||||||||
BRL — CDI Compounded | GSC | Pay | 11.890 | % | 01/02/13 | 3,500,000 | 21,161 | 2,159 | 19,002 | |||||||||||||||||||||||
BRL — CDI Compounded | HSB | Pay | 11.890 | % | 01/02/13 | 1,400,000 | 8,464 | 1,943 | 6,521 | |||||||||||||||||||||||
BRL — CDI Compounded | MSC | Pay | 11.980 | % | 01/02/13 | 900,000 | 6,239 | — | 6,239 | |||||||||||||||||||||||
BRL — CDI Compounded | UBS | Pay | 12.070 | % | 01/02/13 | 1,900,000 | 15,791 | (6,688 | ) | 22,479 | ||||||||||||||||||||||
BRL — CDI Compounded | BRC | Pay | 12.285 | % | 01/02/13 | 800,000 | 8,883 | 2,511 | 6,372 |
See Notes to Financial Statements | A-9 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
Upfront | ||||||||||||||||||||||||||||||||
Premiums | Unrealized | |||||||||||||||||||||||||||||||
Counter- | Pay/Receive | Fixed | Expiration | Notional | Paid | Appreciation | ||||||||||||||||||||||||||
Floating Rate Index | party | Floating Rate | Rate | Date | Amount | Value | (Received) | (Depreciation) | ||||||||||||||||||||||||
United Kingdom RPI Index ∆ | RBS | Pay | 3.440 | % | 09/14/12 | GBP | 300,000 | $ | 768 | $ | — | $ | 768 | |||||||||||||||||||
United Kingdom RPI Index ∆ | DUB | Pay | 3.450 | % | 09/15/12 | 100,000 | 243 | — | 243 | |||||||||||||||||||||||
Total Interest Rate Swaps | $ | 303,527 | $ | (3,994 | ) | $ | 307,521 | |||||||||||||||||||||||||
Total Swap Agreements | $ | 304,474 | $ | (31,593 | ) | $ | 336,067 | |||||||||||||||||||||||||
(i) | As of September 30, 2010, securities with a total aggregate value of $164,137 and $17,700 in cash were fully or partially segregated with the broker(s)/custodian for open futures contracts. | |
(j) | 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 11 in Notes to Financial Statements) as of September 30, 2010: |
Level 2 | Level 3 | |||||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||||
September 30, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||||
Assets | Convertible Preferred Stocks (1) | $ | 100,600 | $ | 100,600 | $ | — | $ | — | |||||||||||
Corporate Bonds & Notes | 27,605,882 | — | 27,605,882 | — | ||||||||||||||||
Mortgage-Backed Securities | 9,807,993 | — | 9,807,993 | — | ||||||||||||||||
Asset-Backed Securities | 5,115,585 | — | 3,285,296 | 1,830,289 | ||||||||||||||||
U.S. Treasury Obligations | 174,826,876 | — | 174,826,876 | — | ||||||||||||||||
Foreign Government Bonds & Notes | 4,194,758 | — | 4,194,758 | — | ||||||||||||||||
Municipal Bonds | 139,600 | — | 139,600 | — | ||||||||||||||||
Short-Term Investment | 544,646 | 544,646 | — | — | ||||||||||||||||
Derivatives (2) | ||||||||||||||||||||
Credit Contracts | 47,508 | — | 47,508 | — | ||||||||||||||||
Foreign Exchange Contracts | 134,313 | — | 134,313 | — | ||||||||||||||||
Interest Rate Contracts | 344,886 | 11,038 | 332,837 | 1,011 | ||||||||||||||||
526,707 | 11,038 | 514,658 | 1,011 | |||||||||||||||||
222,862,647 | 656,284 | 220,375,063 | 1,831,300 | |||||||||||||||||
Liabilities | Derivatives (2) | |||||||||||||||||||
Credit Contracts | (53,344 | ) | — | (46,561 | ) | (6,783 | ) | |||||||||||||
Foreign Exchange Contracts | (498,735 | ) | — | (498,735 | ) | — | ||||||||||||||
Interest Rate Contracts | (238,295 | ) | (2,562 | ) | (195,364 | ) | (40,369 | ) | ||||||||||||
(790,374 | ) | (2,562 | ) | (740,660 | ) | (47,152 | ) | |||||||||||||
Total | $ | 222,072,273 | $ | 653,722 | $ | 219,634,403 | $ | 1,784,148 | ||||||||||||
The following is a reconciliation of investments for significant unobservable inputs (Level 3) used in valuing the Fund’s assets and liabilities (See Note 11 in Notes to Financial Statements) for the six month period ended September 30, 2010:
Change in Net | ||||||||||||||||||||||||||||||||
Unrealized | ||||||||||||||||||||||||||||||||
Appreciation | ||||||||||||||||||||||||||||||||
Total Change | (Depreciation) | |||||||||||||||||||||||||||||||
in Net | Transfers | on Level 3 | ||||||||||||||||||||||||||||||
Value, | Net | Accrued | Total Net | Unrealized | In and/ | Holdings Held at | ||||||||||||||||||||||||||
Beginning | Purchases | Discounts | Realized Gains | Appreciation | or Out of | Value, | the End of Period, | |||||||||||||||||||||||||
of Period | (Sales) | (Premiums) | (Losses) | (Depreciation) | Level 3 | End of Period | if Applicable | |||||||||||||||||||||||||
Asset-Backed Securities | $ | 1,763,241 | $ | 18,482 | $ | 171 | �� | $ | 13,289 | $ | 35,106 | $ | — | $ | 1,830,289 | $ | 35,106 | |||||||||||||||
Derivatives (2) | ||||||||||||||||||||||||||||||||
Credit Contracts | — | (7,276 | ) | — | — | 493 | — | (6,783 | ) | 493 | ||||||||||||||||||||||
Interest Rate Contracts | (12,183 | ) | (16,709 | ) | — | — | (10,466 | ) | — | (39,358 | ) | (10,466 | ) | |||||||||||||||||||
Total | $ | 1,751,058 | $ | (5,503 | ) | $ | 171 | $ | 13,289 | $ | 25,133 | $ | — | $ | 1,784,148 | $ | 25,133 | |||||||||||||||
(1) | For equity securities categorized in a single level, refer to the schedule of investments for further industry breakout. | |
(2) | Investments in derivatives include open futures contracts, swap contracts, written options, and forward foreign currency contracts. |
See Notes to Financial Statements | A-10 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments
September 30, 2010 (Unaudited)
PL MANAGED BOND FUND
Schedule of Investments
September 30, 2010 (Unaudited)
Shares | Value | |||||||
CONVERTIBLE PREFERRED STOCKS — 1.0% | ||||||||
Financials — 1.0% | ||||||||
American International Group Inc 8.500% | 8,300 | $ | 71,297 | |||||
Lehman Brothers Holdings Inc 8.750% Ω | 1,500 | 390 | ||||||
Wells Fargo & Co 7.500% | 3,000 | 3,018,000 | ||||||
3,089,687 | ||||||||
Total Convertible Preferred Stocks (Cost $3,661,903) | 3,089,687 | |||||||
PREFERRED STOCKS — 0.0% | ||||||||
Financials — 0.0% | ||||||||
Fannie Mae * | 8,000 | 3,480 | ||||||
Total Preferred Stocks (Cost $200,000) | 3,480 | |||||||
Principal | ||||||||
Amount | ||||||||
CORPORATE BONDS & NOTES — 26.0% | ||||||||
Consumer Discretionary — 0.0% | ||||||||
General Motors Corp | ||||||||
8.375% due 07/05/33 Ω | EUR | 200,000 | 88,611 | |||||
Consumer Staples — 0.5% | ||||||||
Kraft Foods Inc | ||||||||
6.125% due 02/01/18 | $ | 700,000 | 826,549 | |||||
6.875% due 02/01/38 | 100,000 | 121,675 | ||||||
Reynolds American Inc | ||||||||
7.625% due 06/01/16 | 100,000 | 117,499 | ||||||
Wal-Mart Stores Inc | ||||||||
5.800% due 02/15/18 | 200,000 | 240,968 | ||||||
6.500% due 08/15/37 | 100,000 | 125,238 | ||||||
1,431,929 | ||||||||
Energy — 1.3% | ||||||||
Colorado Interstate Gas Co | ||||||||
6.800% due 11/15/15 | 200,000 | 236,757 | ||||||
Gaz Capital SA (Russia) | ||||||||
8.146% due 04/11/18 ~ | 500,000 | 587,500 | ||||||
9.250% due 04/23/19 | 500,000 | 625,000 | ||||||
NGPL PipeCo LLC | ||||||||
7.119% due 12/15/17 ~ | 500,000 | 543,268 | ||||||
Petrobras International Finance Co (Cayman) | ||||||||
5.875% due 03/01/18 | 400,000 | 446,424 | ||||||
Petroleos Mexicanos (Mexico) | ||||||||
5.500% due 01/21/21 ~ | 600,000 | 642,000 | ||||||
Ras Laffan Liquefied Natural Gas Co Ltd III | ||||||||
4.500% due 09/30/12 D | 400,000 | 422,536 | ||||||
Shell International Finance BV (Netherlands) | ||||||||
5.500% due 03/25/40 | 100,000 | 114,887 | ||||||
The Williams Cos Inc | ||||||||
6.375% due 10/01/10 ~ | 100,000 | 100,000 | ||||||
TNK-BP Finance SA (Luxembourg) | ||||||||
7.250% due 02/02/20 | 200,000 | 219,250 | ||||||
3,937,622 | ||||||||
Financials — 21.0% | ||||||||
Ally Financial Inc | ||||||||
7.500% due 09/15/20 ~ | 200,000 | 214,000 | ||||||
American Express Bank FSB | ||||||||
5.500% due 04/16/13 | 600,000 | 653,607 | ||||||
American Express Centurion Bank | ||||||||
6.000% due 09/13/17 | 1,200,000 | 1,370,750 | ||||||
American General Finance Corp | ||||||||
4.125% due 11/29/13 | EUR | 1,000,000 | 1,157,488 | |||||
American International Group Inc | ||||||||
5.850% due 01/16/18 | $ | 800,000 | 832,000 | |||||
ANZ National International Ltd (New Zealand) | ||||||||
6.200% due 07/19/13 ~ | 300,000 | 333,656 | ||||||
Banco Santander Chile (Chile) | ||||||||
1.771% due 04/20/12 § ~ | 400,000 | 400,006 | ||||||
Bank of America Corp | ||||||||
4.500% due 04/01/15 | 1,900,000 | 1,996,402 | ||||||
4.875% due 01/15/13 | 100,000 | 106,238 | ||||||
5.650% due 05/01/18 | 700,000 | 742,798 | ||||||
Bank of China Hong Kong Ltd (Hong Kong) | ||||||||
5.550% due 02/11/20 ~ | 100,000 | 105,791 | ||||||
Bank of Montreal (Canada) | ||||||||
2.850% due 06/09/15 ~ | 100,000 | 105,403 | ||||||
Barclays Bank PLC (United Kingdom) | ||||||||
5.000% due 09/22/16 | 100,000 | 109,612 | ||||||
5.450% due 09/12/12 | 800,000 | 866,427 | ||||||
6.050% due 12/04/17 ~ | 2,700,000 | 2,932,389 | ||||||
10.179% due 06/12/21 ~ | 720,000 | 961,878 | ||||||
BM&FBovespa SA (Brazil) | ||||||||
5.500% due 07/16/20 ~ | 100,000 | 106,958 | ||||||
Citigroup Capital XXI | ||||||||
8.300% due 12/21/77 § | 2,000,000 | 2,110,000 | ||||||
Citigroup Inc | ||||||||
2.384% due 08/13/13 § | 200,000 | 201,574 | ||||||
3.625% due 11/30/17 § | EUR | 500,000 | 655,210 | |||||
5.500% due 04/11/13 | $ | 700,000 | 751,600 | |||||
5.500% due 10/15/14 | 1,000,000 | 1,086,447 | ||||||
5.625% due 08/27/12 | 50,000 | 52,864 | ||||||
5.875% due 05/29/37 | 200,000 | 199,715 | ||||||
8.500% due 05/22/19 | 200,000 | 247,664 | ||||||
Commonwealth Bank of Australia (Australia) | ||||||||
0.948% due 07/12/13 § ~ | 1,600,000 | 1,604,459 | ||||||
Danske Bank AS (Denmark) | ||||||||
2.500% due 05/10/12 ~ | 200,000 | 204,981 | ||||||
Deutsche Bank AG (Germany) | ||||||||
6.000% due 09/01/17 | 900,000 | 1,039,015 | ||||||
Dexia Credit Local (France) | ||||||||
0.940% due 09/23/11 § ~ | 500,000 | 501,922 | ||||||
0.961% due 04/29/14 § ~ | 800,000 | 797,490 | ||||||
Ford Motor Credit Co LLC | ||||||||
7.250% due 10/25/11 | 100,000 | 105,001 | ||||||
7.800% due 06/01/12 | 900,000 | 957,586 | ||||||
General Electric Capital Corp | ||||||||
5.875% due 01/14/38 | 900,000 | 917,178 | ||||||
6.875% due 01/10/39 | 200,000 | 230,449 | ||||||
General Motors Acceptance Corp | ||||||||
6.625% due 05/15/12 | 300,000 | 308,990 | ||||||
6.875% due 09/15/11 | 1,400,000 | 1,450,750 | ||||||
7.000% due 02/01/12 | 600,000 | 621,147 | ||||||
8.300% due 02/12/15 ~ | 200,000 | 218,500 | ||||||
HCP Inc | ||||||||
5.950% due 09/15/11 | 700,000 | 727,782 | ||||||
ING Bank NV (Netherlands) | ||||||||
1.089% due 03/30/12 § ~ | 700,000 | 697,837 | ||||||
Intesa Sanpaolo (Italy) | ||||||||
2.375% due 12/21/12 | 1,400,000 | 1,402,591 |
See Notes to Financial Statements | A-11 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
Principal | ||||||||
Amount | Value | |||||||
JPMorgan Chase & Co | ||||||||
1.039% due 09/30/13 § | $ | 2,500,000 | $ | 2,509,562 | ||||
7.900% § ± | 300,000 | 322,581 | ||||||
KeyBank NA | ||||||||
7.000% due 02/01/11 | 400,000 | 407,255 | ||||||
Keycorp | ||||||||
1.091% due 11/22/10 § | EUR | 500,000 | 686,418 | |||||
LeasePlan Corp NV (Netherlands) | ||||||||
3.125% due 02/10/12 | 300,000 | 419,302 | ||||||
Lehman Brothers Holdings Inc | ||||||||
2.851% due 12/23/08 § Ω | $ | 500,000 | 110,625 | |||||
5.625% due 01/24/13 Ω | 1,200,000 | 282,000 | ||||||
6.750% due 12/28/17 Ω | 500,000 | 675 | ||||||
6.875% due 05/02/18 Ω | 100,000 | 24,000 | ||||||
Lloyds TSB Bank PLC (United Kingdom) | ||||||||
12.000% § ~ ± | 1,100,000 | 1,270,111 | ||||||
Macquarie Bank Ltd (Australia) | ||||||||
3.300% due 07/17/14 ~ | 5,300,000 | 5,654,570 | ||||||
Merrill Lynch & Co Inc | ||||||||
6.875% due 04/25/18 | 900,000 | 1,011,035 | ||||||
Metropolitan Life Global Funding I | ||||||||
5.125% due 04/10/13 ~ | 300,000 | 326,786 | ||||||
Morgan Stanley | ||||||||
0.590% due 04/19/12 § | 100,000 | 98,426 | ||||||
5.950% due 12/28/17 | 1,900,000 | 2,043,946 | ||||||
Nationwide Building Society (United Kingdom) | ||||||||
6.250% due 02/25/20 ~ | 300,000 | 330,786 | ||||||
Nykredit Realkredit AS (Denmark) | ||||||||
2.292% due 04/01/38 § | DKK | 747,248 | 136,347 | |||||
2.292% due 10/01/38 § | 897,789 | 163,979 | ||||||
Principal Life Income Funding Trusts | ||||||||
5.300% due 04/24/13 | $ | 100,000 | 108,292 | |||||
Qatari Diar Finance QSC (Qatar) | ||||||||
5.000% due 07/21/20 ~ | 200,000 | 210,771 | ||||||
Realkredit Danmark AS (Denmark) | ||||||||
2.450% due 01/01/38 § | DKK | 3,211,439 | 586,410 | |||||
Regions Bank/Birmingham AL | ||||||||
7.500% due 05/15/18 | $ | 300,000 | 316,547 | |||||
Regions Financial Corp | ||||||||
0.459% due 06/26/12 § | 900,000 | 860,077 | ||||||
RZD Capital Ltd (Ireland) | ||||||||
5.739% due 04/03/17 | 500,000 | 528,375 | ||||||
Santander U.S. Debt SA Unipersonal (Spain) | ||||||||
1.089% due 03/30/12 § ~ | 1,500,000 | 1,479,809 | ||||||
SLM Corp | ||||||||
0.492% due 03/15/11 § | 600,000 | 595,151 | ||||||
0.728% due 10/25/11 § | 900,000 | 858,941 | ||||||
1.580% due 10/01/14 § | 100,000 | 76,039 | ||||||
8.000% due 03/25/20 | 400,000 | 397,528 | ||||||
State Bank of India/London (India) | ||||||||
4.500% due 07/27/15 ~ | 1,000,000 | 1,047,999 | ||||||
Temasek Financial I Ltd (Singapore) | ||||||||
4.300% due 10/25/19 ~ | 300,000 | 326,031 | ||||||
The Bear Stearns Cos LLC | ||||||||
6.400% due 10/02/17 | 400,000 | 466,578 | ||||||
The Goldman Sachs Group Inc | ||||||||
0.604% due 02/06/12 § | 200,000 | 198,797 | ||||||
6.250% due 09/01/17 | 1,100,000 | 1,234,677 | ||||||
6.750% due 10/01/37 | 1,200,000 | 1,251,251 | ||||||
The Royal Bank of Scotland Group PLC (United Kingdom) | ||||||||
0.784% due 04/08/11 § ~ | 400,000 | 400,331 | ||||||
2.625% due 05/11/12 ~ | 100,000 | 102,745 | ||||||
3.000% due 12/09/11 ~ | 800,000 | 821,511 | ||||||
3.950% due 09/21/15 | 400,000 | 404,761 | ||||||
7.640% § ± | 500,000 | 373,750 | ||||||
TransCapitalInvest Ltd for OJSC AK Transneft (Ireland) | ||||||||
8.700% due 08/07/18 ~ | 100,000 | 123,274 | ||||||
UBS AG (Switzerland) | ||||||||
1.439% due 02/23/12 § | 300,000 | 302,201 | ||||||
5.875% due 12/20/17 | 700,000 | 793,220 | ||||||
Wachovia Corp | ||||||||
0.656% due 08/01/13 § | 300,000 | 295,995 | ||||||
0.656% due 10/15/11 § | 800,000 | 800,911 | ||||||
Wells Fargo & Co | ||||||||
7.980% § ± | 1,700,000 | 1,797,750 | ||||||
62,644,281 | ||||||||
Health Care — 0.4% | ||||||||
Roche Holdings Inc | ||||||||
7.000% due 03/01/39 ~ | 400,000 | 538,350 | ||||||
UnitedHealth Group Inc | ||||||||
6.000% due 02/15/18 | 400,000 | 467,644 | ||||||
6.875% due 02/15/38 | 100,000 | 120,052 | ||||||
1,126,046 | ||||||||
Industrials — 1.5% | ||||||||
International Lease Finance Corp | ||||||||
0.877% due 07/13/12 § | 2,682,000 | 2,482,172 | ||||||
1.274% due 08/15/11 § | EUR | 400,000 | 526,190 | |||||
4.950% due 02/01/11 | $ | 1,000,000 | 1,005,000 | |||||
5.300% due 05/01/12 | 300,000 | 302,250 | ||||||
Noble Group Ltd (Bermuda) | ||||||||
6.750% due 01/29/20 ~ | 200,000 | 216,152 | ||||||
4,531,764 | ||||||||
Materials — 0.4% | ||||||||
Codelco Inc (Chile) | ||||||||
6.150% due 10/24/36 ~ | 200,000 | 238,553 | ||||||
Gerdau Holdings Inc (Brazil) | ||||||||
7.000% due 01/20/20 ~ | 400,000 | 449,000 | ||||||
Vale Overseas Ltd (Cayman) | ||||||||
6.250% due 01/23/17 | 200,000 | 229,409 | ||||||
6.875% due 11/10/39 | 100,000 | 115,081 | ||||||
1,032,043 | ||||||||
Telecommunication Services — 0.5% | ||||||||
AT&T Inc | ||||||||
6.300% due 01/15/38 | 200,000 | 226,611 | ||||||
Verizon Wireless Capital LLC | ||||||||
5.250% due 02/01/12 | 1,300,000 | 1,376,934 | ||||||
1,603,545 | ||||||||
Utilities — 0.4% | ||||||||
Electricite de France (France) | ||||||||
5.500% due 01/26/14 ~ | 200,000 | 225,895 | ||||||
6.500% due 01/26/19 ~ | 200,000 | 244,633 | ||||||
6.950% due 01/26/39 ~ | 200,000 | 261,841 | ||||||
Entergy Corp | ||||||||
3.625% due 09/15/15 | 500,000 | 505,641 | ||||||
1,238,010 | ||||||||
Total Corporate Bonds & Notes (Cost $73,355,169) | 77,633,851 | |||||||
CONVERTIBLE CORPORATE BONDS — 0.5% | ||||||||
Energy — 0.5% | ||||||||
Transocean Inc (Switzerland) | ||||||||
1.500% due 12/15/37 | 1,400,000 | 1,377,250 | ||||||
Total Convertible Corporate Bonds (Cost $1,301,229) | 1,377,250 | |||||||
See Notes to Financial Statements | A-12 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
Principal | ||||||||
Amount | Value | |||||||
MORTGAGE-BACKED SECURITIES — 31.9% | ||||||||
Collateralized Mortgage Obligations — Commercial — 2.1% | ||||||||
Bear Stearns Commercial Mortgage Securities | ||||||||
5.471% due 01/12/45 “ § | $ | 100,000 | $ | 109,589 | ||||
5.700% due 06/13/50 “ | 200,000 | 215,561 | ||||||
Commercial Mortgage Pass-Through Certificates | ||||||||
5.306% due 12/10/46 “ | 200,000 | 208,273 | ||||||
Credit Suisse Mortgage Capital Certificates | ||||||||
5.467% due 09/15/39 “ | 900,000 | 948,669 | ||||||
5.846% due 03/15/39 “ § | 100,000 | 106,185 | ||||||
Greenwich Capital Commercial Funding Corp | ||||||||
5.444% due 03/10/39 “ | 400,000 | 422,319 | ||||||
LB-UBS Commercial Mortgage Trust | ||||||||
5.866% due 09/15/45 “ § | 600,000 | 635,850 | ||||||
Merrill Lynch-Floating Trust | ||||||||
0.796% due 07/09/21 “ § ~ | 499,897 | 465,335 | ||||||
Merrill Lynch/Countrywide Commercial Mortgage Trust | ||||||||
5.700% due 06/13/50 “ | 500,000 | 524,675 | ||||||
Morgan Stanley Capital I | ||||||||
5.731% due 07/12/44 “ § | 1,700,000 | 1,881,574 | ||||||
Wachovia Bank Commercial Mortgage Trust | ||||||||
0.347% due 09/15/21 “ § ~ | 306,769 | 284,980 | ||||||
5.342% due 12/15/43 “ | 600,000 | 590,004 | ||||||
6,393,014 | ||||||||
Collateralized Mortgage Obligations — Residential — 4.8% | ||||||||
Adjustable Rate Mortgage Trust | ||||||||
3.113% due 05/25/35 “ § | 26,132 | 25,961 | ||||||
Arran Residential Mortgages Funding (United Kingdom) | ||||||||
2.403% due 05/16/47 “ § ~ | EUR | 1,000,000 | 1,361,419 | |||||
Banc of America Funding Corp | ||||||||
2.893% due 05/25/35 “ § | $ | 178,111 | 177,403 | |||||
Banc of America Mortgage Securities Inc | ||||||||
2.924% due 07/25/33 “ § | 84,749 | 82,626 | ||||||
5.000% due 05/25/34 “ | 38,345 | 39,298 | ||||||
Bear Stearns Adjustable Rate Mortgage Trust | ||||||||
2.550% due 10/25/35 “ § | 463,521 | 409,970 | ||||||
2.560% due 08/25/35 “ § | 76,779 | 72,833 | ||||||
2.775% due 08/25/33 “ § | 190,093 | 185,176 | ||||||
2.934% due 03/25/35 “ § | 167,149 | 160,620 | ||||||
Bear Stearns Alt-A Trust | ||||||||
2.848% due 05/25/35 “ § | 67,488 | 52,987 | ||||||
2.984% due 09/25/35 “ § | 81,254 | 61,770 | ||||||
5.386% due 11/25/36 “ § | 107,050 | 66,547 | ||||||
Chevy Chase Mortgage Funding Corp | ||||||||
0.506% due 08/25/35 “ § ~ | 87,382 | 54,381 | ||||||
Citigroup Mortgage Loan Trust Inc | ||||||||
2.560% due 08/25/35 “ § | 91,878 | 85,796 | ||||||
2.650% due 12/25/35 “ § | 150,321 | 145,100 | ||||||
Countrywide Alternative Loan Trust | ||||||||
3.834% due 06/25/37 “ § | 421,221 | 263,490 | ||||||
Countrywide Home Loan Mortgage Pass-Through Trust | ||||||||
0.576% due 03/25/35 “ § | 39,656 | 25,144 | ||||||
0.596% due 06/25/35 “ § ~ | 187,579 | 160,114 | ||||||
Credit Suisse First Boston Mortgage Securities Corp | ||||||||
0.962% due 03/25/32 “ § ~ | 7,114 | 5,986 | ||||||
6.000% due 11/25/35 “ | 144,810 | 122,014 | ||||||
Downey Saving and Loan Association Mortgage Loan Trust | ||||||||
0.437% due 04/19/48 “ § | 603,651 | 243,207 | ||||||
Fannie Mae | ||||||||
0.456% due 10/27/37 “ § | 3,400,000 | 3,394,839 | ||||||
0.566% due 04/25/37 “ § | 223,478 | 223,254 | ||||||
0.706% due 09/25/35 “ § | 396,270 | 396,248 | ||||||
1.625% due 11/25/23 “ § | 364,680 | 367,195 | ||||||
4.250% due 07/25/17 “ | 151,408 | 156,484 | ||||||
4.500% due 04/25/17 — 10/25/17 “ | 261,036 | 269,562 | ||||||
5.000% due 01/25/17 “ | 71,557 | 72,450 | ||||||
6.000% due 03/25/31 “ | 962,225 | 985,310 | ||||||
Freddie Mac | ||||||||
1.586% due 10/25/44 “ § | 58,863 | 61,181 | ||||||
1.786% due 07/25/44 “ § | 313,632 | 314,550 | ||||||
4.500% due 06/15/17 — 10/15/19 “ | 236,115 | 240,388 | ||||||
5.000% due 04/15/18 — 04/15/30 “ | 637,953 | 650,115 | ||||||
5.500% due 03/15/17 “ | 24,608 | 25,330 | ||||||
8.000% due 04/15/30 “ | 365,592 | 435,058 | ||||||
GMAC Mortgage Corp Loan Trust | ||||||||
5.500% due 09/25/34 “ | 14,333 | 14,607 | ||||||
Harborview Mortgage Loan Trust | ||||||||
0.427% due 12/19/36 “ § | 818,535 | 523,903 | ||||||
0.447% due 01/19/38 “ § | 251,775 | 158,120 | ||||||
0.477% due 05/19/35 “ § | 43,774 | 27,458 | ||||||
JPMorgan Mortgage Trust | ||||||||
5.022% due 02/25/35 “ § | 69,935 | 70,932 | ||||||
5.750% due 01/25/36 “ | 100,447 | 90,895 | ||||||
Mellon Residential Funding Corp | ||||||||
0.737% due 06/15/30 “ § | 14,329 | 13,973 | ||||||
Merrill Lynch Mortgage Investors Inc | ||||||||
0.466% due 02/25/36 “ § | 55,430 | 43,240 | ||||||
Residential Accredit Loans Inc | ||||||||
0.436% due 06/25/46 “ § | 118,687 | 47,458 | ||||||
6.000% due 06/25/36 “ | 366,848 | 237,934 | ||||||
Residential Asset Securitization Trust | ||||||||
0.656% due 05/25/33 “ § | 23,839 | 20,805 | ||||||
Structured Asset Mortgage Investments Inc | ||||||||
0.476% due 05/25/36 “ § | 258,838 | 147,474 | ||||||
Structured Asset Securities Corp | ||||||||
2.640% due 08/25/32 “ § | 29,477 | 28,783 | ||||||
2.841% due 10/25/35 “ § ~ | 98,263 | 79,147 | ||||||
Washington Mutual Mortgage Pass-Through Certificates | ||||||||
0.566% due 01/25/45 “ § | 34,070 | 28,509 | ||||||
0.576% due 01/25/45 “ § | 34,545 | 28,370 | ||||||
0.796% due 12/25/27 “ § | 90,809 | 81,868 | ||||||
1.770% due 08/25/42 “ § | 5,892 | 5,223 | ||||||
3.003% due 02/27/34 “ § | 11,720 | 11,675 | ||||||
3.253% due 09/25/46 “ § | 119,796 | 86,970 | ||||||
5.777% due 02/25/37 “ § | 600,000 | 508,774 | ||||||
Washington Mutual Pass-Through Certificates (IO) ~ | ||||||||
0.000% due 12/25/27 “ § | 92,321 | 5,078 | ||||||
Wells Fargo Mortgage-Backed Securities Trust | ||||||||
2.883% due 12/25/34 “ § | 163,744 | 160,247 | ||||||
2.889% due 07/25/35 “ § | 54,706 | 54,723 | ||||||
3.424% due 04/25/36 “ § | 177,454 | 168,893 | ||||||
4.500% due 11/25/18 “ | 106,428 | 108,309 | ||||||
5.300% due 08/25/36 “ § | 35,871 | 35,569 | ||||||
14,182,743 | ||||||||
Fannie Mae — 20.4% | ||||||||
1.586% due 10/01/44 “ § | 56,471 | 56,746 | ||||||
2.521% due 09/01/35 “ § | 227,938 | 238,371 | ||||||
2.753% due 11/01/34 “ § | 211,505 | 220,048 | ||||||
3.268% due 11/01/32 “ § | 220,248 | 230,962 | ||||||
3.359% due 12/01/35 “ § | 68,147 | 71,393 | ||||||
4.000% due 10/13/40 — 11/10/40 “ | 2,000,000 | 2,052,812 | ||||||
4.500% due 11/01/39 — 10/13/40 “ | 32,000,011 | 33,331,343 | ||||||
4.656% due 12/01/36 “ § | 24,948 | 26,047 | ||||||
5.000% due 03/01/35 — 10/13/40 “ | 3,702,210 | 3,903,291 | ||||||
5.500% due 12/01/20 — 10/13/40 “ | 12,051,903 | 12,890,021 | ||||||
6.000% due 09/01/22 — 10/13/40 “ | 7,121,958 | 7,685,108 | ||||||
6.500% due 03/01/17 “ | 56,939 | 61,851 | ||||||
60,767,993 | ||||||||
See Notes to Financial Statements | A-13 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
Principal | ||||||||
Amount | Value | |||||||
Freddie Mac — 4.0% | ||||||||
2.635% due 06/01/35 “ § | $ | 371,621 | $ | 388,794 | ||||
2.658% due 11/01/31 “ § | 8,659 | 9,009 | ||||||
2.669% due 04/01/32 “ § | 29,039 | 30,332 | ||||||
4.500% due 10/13/40 “ | 1,000,000 | 1,039,844 | ||||||
4.755% due 09/01/35 “ § | 221,912 | 231,034 | ||||||
4.946% due 09/01/35 “ § | 27,583 | 28,700 | ||||||
5.500% due 03/01/23 — 10/13/40 “ | 9,518,581 | 10,098,114 | ||||||
6.000% due 12/01/22 — 03/01/23 “ | 164,204 | 179,725 | ||||||
12,005,552 | ||||||||
Government National Mortgage Association — 0.6% | ||||||||
6.500% due 11/15/36 -10/15/38 “ | 1,690,923 | 1,863,027 | ||||||
Total Mortgage-Backed Securities (Cost $94,806,405) | 95,212,329 | |||||||
ASSET-BACKED SECURITIES — 0.3% | ||||||||
Ally Auto Receivables Trust | ||||||||
1.320% due 03/15/12 “ ~ | 123,184 | 123,537 | ||||||
Asset Backed Funding Certificates | ||||||||
0.606% due 06/25/34 “ § | 138,554 | 107,699 | ||||||
Bear Stearns Asset Backed Securities Trust | ||||||||
3.502% due 10/25/36 “ § | 197,694 | 149,435 | ||||||
Carrington Mortgage Loan Trust | ||||||||
0.416% due 01/25/36 “ § | 53,166 | 52,977 | ||||||
Long Beach Mortgage Loan Trust | ||||||||
0.536% due 10/25/34 “ § | 18,554 | 15,809 | ||||||
Park Place Securities Inc | ||||||||
0.516% due 09/25/35 “ § | 138,718 | 126,325 | ||||||
SBI Heloc Trust | ||||||||
0.426% due 08/25/36 “ § ~ | 8,434 | 8,383 | ||||||
Securitized Asset-Backed Receivables LLC Trust | ||||||||
0.386% due 05/25/37 “ § | 198,033 | 150,955 | ||||||
SLM Student Loan Trust | ||||||||
0.498% due 10/25/16 “ § | 89,055 | 89,032 | ||||||
Small Business Administration | ||||||||
4.754% due 08/10/14 “ | 51,490 | 54,902 | ||||||
Structured Asset Securities Corp | ||||||||
0.306% due 10/25/36 “ § | 21,599 | 21,463 | ||||||
Total Asset-Backed Securities (Cost $1,037,387) | 900,517 | |||||||
U.S. GOVERNMENT AGENCY ISSUES — 1.3% | ||||||||
Fannie Mae | ||||||||
1.125% due 09/30/13 | 1,700,000 | 1,714,047 | ||||||
4.625% due 10/15/13 | 1,800,000 | 2,003,461 | ||||||
Total U.S. Government Agency Issues (Cost $3,696,547) | 3,717,508 | |||||||
U.S. TREASURY OBLIGATIONS — 34.5% | ||||||||
U.S. Treasury Inflation Protected Securities — 1.5% | ||||||||
1.250% due 07/15/20 ^ | 99,965 | 105,065 | ||||||
2.000% due 01/15/26 ^ | 1,757,456 | 1,932,927 | ||||||
2.375% due 01/15/25 ^ | 2,081,826 | 2,393,775 | ||||||
2.500% due 01/15/29 ^ | 101,542 | 119,820 | ||||||
4,551,587 | ||||||||
U.S. Treasury Notes — 33.0% | ||||||||
0.375% due 08/31/12 | 5,400,000 | 5,396,414 | ||||||
0.625% due 06/30/12 | 1,000,000 | 1,004,217 | ||||||
0.625% due 07/31/12 | 8,200,000 | 8,235,563 | ||||||
1.250% due 08/31/15 | 700,000 | 700,109 | ||||||
1.750% due 07/31/15 | 1,900,000 | 1,946,468 | ||||||
1.875% due 06/30/15 | 10,500,000 | 10,824,030 | ||||||
1.875% due 08/31/17 | 600,000 | 599,719 | ||||||
1.875% due 09/30/17 | 3,500,000 | 3,491,934 | ||||||
2.125% due 05/31/15 | 6,900,000 | 7,196,472 | ||||||
2.375% due 07/31/17 | 9,800,000 | 10,126,154 | ||||||
2.500% due 04/30/15 | 4,700,000 | 4,984,204 | ||||||
2.500% due 06/30/17 ‡ | 20,000,000 | 20,840,620 | ||||||
2.750% due 11/30/16 | 2,200,000 | 2,338,532 | ||||||
2.750% due 05/31/17 | 5,900,000 | 6,243,858 | ||||||
3.000% due 02/28/17 | 2,600,000 | 2,797,236 | ||||||
3.125% due 10/31/16 | 100,000 | 108,578 | ||||||
3.125% due 01/31/17 | 800,000 | 867,188 | ||||||
3.125% due 04/30/17 | 3,200,000 | 3,464,250 | ||||||
3.250% due 12/31/16 | 900,000 | 982,687 | ||||||
3.250% due 03/31/17 | 4,600,000 | 5,017,593 | ||||||
3.375% due 11/15/19 | 200,000 | 215,531 | ||||||
9.250% due 02/15/16 | 400,000 | 563,281 | ||||||
9.875% due 11/15/15 | 200,000 | 285,000 | ||||||
98,229,638 | ||||||||
Total U.S. Treasury Obligations (Cost $99,658,602) | 102,781,225 | |||||||
FOREIGN GOVERNMENT BONDS & NOTES — 1.4% | ||||||||
Banco Nacional de Desenvolvimento Economico e Social | ||||||||
4.125% due 09/15/17 ~ D | EUR | 100,000 | 137,003 | |||||
Canada Housing Trust No 1 (Canada) | ||||||||
3.350% due 12/15/20 ~ | CAD | 700,000 | 692,271 | |||||
Canadian Government Bond (Canada) | ||||||||
2.000% due 12/01/14 | 500,000 | 489,343 | ||||||
2.500% due 09/01/13 | 600,000 | 598,758 | ||||||
Export-Import Bank of Korea (South Korea) | ||||||||
0.510% due 10/04/11 § ~ | $ | 800,000 | 800,915 | |||||
5.125% due 06/29/20 | 100,000 | 108,077 | ||||||
Province of Ontario Canada (Canada) | ||||||||
4.600% due 06/02/39 | CAD | 100,000 | 103,436 | |||||
4.700% due 06/02/37 | 400,000 | 417,316 | ||||||
Republic of Panama (Panama) | ||||||||
9.375% due 04/01/29 | $ | 40,000 | 60,800 | |||||
Societe de Financement de l’Economie Francaise (France) | ||||||||
2.125% due 05/20/12 | EUR | 300,000 | 415,540 | |||||
3.375% due 05/05/14 ~ | $ | 200,000 | 215,357 | |||||
United Mexican States (Mexico) | ||||||||
5.950% due 03/19/19 | 100,000 | 117,850 | ||||||
6.050% due 01/11/40 | 100,000 | 115,000 | ||||||
Total Foreign Government Bonds & Notes (Cost $4,125,558) | 4,271,666 | |||||||
MUNICIPAL BONDS — 3.1% | ||||||||
Buckeye Tobacco Settlement Financing Authority OH ‘A2’ | ||||||||
5.875% due 06/01/47 | 1,100,000 | 806,300 | ||||||
City of North Las Vegas NV Build America Bonds | ||||||||
6.572% due 06/01/40 | 900,000 | 946,602 |
See Notes to Financial Statements | A-14 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
Principal | ||||||||
Amount | Value | |||||||
Clark County NV Airport ‘C’ | ||||||||
6.820% due 07/01/45 | $ | 200,000 | $ | 221,990 | ||||
Los Angeles Unified School District CA ‘A1’ | ||||||||
4.500% due 01/01/28 | 400,000 | 405,548 | ||||||
North Carolina Turnpike Authority ‘B’ | ||||||||
6.700% due 01/01/39 | 100,000 | 108,612 | ||||||
Southern California Public Power Authority Build America Bonds | ||||||||
5.943% due 07/01/40 | 1,600,000 | 1,651,920 | ||||||
State of California | ||||||||
5.650% due 04/01/39 § | 100,000 | 107,756 | ||||||
7.500% due 04/01/34 | 100,000 | 108,898 | ||||||
7.550% due 04/01/39 | 100,000 | 108,851 | ||||||
State of Illinois | ||||||||
4.071% due 01/01/14 | 200,000 | 207,372 | ||||||
Tobacco Securitization Authority of Southern California ‘A1’ | ||||||||
5.000% due 06/01/37 | 800,000 | 615,752 | ||||||
Tobacco Settlement Finance Authority of WV ‘A’ | ||||||||
7.467% due 06/01/47 | 850,000 | 660,237 | ||||||
University of Arizona | ||||||||
6.423% due 08/01/35 | 2,700,000 | 2,777,490 | ||||||
University of California | ||||||||
6.270% due 05/15/31 | 500,000 | 523,645 | ||||||
Total Municipal Bonds (Cost $9,395,619) | 9,250,973 | |||||||
SHORT-TERM INVESTMENTS — 17.9% | ||||||||
U.S. Government Agency Issues — 5.7% | ||||||||
Fannie Mae | ||||||||
0.240% due 10/13/10 | 4,000,000 | 3,999,827 | ||||||
0.240% due 11/08/10 | 13,000,000 | 12,998,353 | ||||||
16,998,180 | ||||||||
U.S. Treasury Bills — 0.0% | ||||||||
0.266% due 10/21/10 ‡ | 80,000 | 79,994 | ||||||
Repurchase Agreements — 11.8% | ||||||||
Barclays PLC 0.190% due 10/01/10 (Dated 09/30/10, repurchase price of $29,800,157; collateralized by U.S. Treasury Bonds: 4.500% due 08/15/39 and value $30,421,698) | 29,800,000 | 29,800,000 | ||||||
Credit Suisse Group AG 0.170% due 10/06/10 (Dated 09/28/10, repurchase price of $4,000,151; collateralized by U.S. Treasury Notes: 3.125% due 08/31/13 and value $4,093,579) | 4,000,000 | 4,000,000 | ||||||
Credit Suisse Group AG 0.200% due 10/01/10 (Dated 09/30/10, repurchase price of $1,500,008; collateralized by U.S. Treasury Notes: 0.375% due 09/30/12 and value $1,535,559) | 1,500,000 | 1,500,000 | ||||||
35,300,000 | ||||||||
Shares | ||||||||
Money Market Fund — 0.4% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 1,055,520 | 1,055,520 | ||||||
Total Short-Term Investments (Cost $53,431,901) | 53,433,694 | |||||||
TOTAL INVESTMENTS — 117.9% (Cost $344,670,320) | 351,672,180 | |||||||
OTHER ASSETS & LIABILITIES, NET — (17.9%) | (53,366,866 | ) | ||||||
NET ASSETS — 100.0% | $ | 298,305,314 | ||||||
Notes to Schedule of Investments
(a) | As of September 30, 2010, the Fund was diversified as a percentage of net assets as follows: |
U.S. Treasury Obligations | 34.5 | % | ||
Mortgage-Backed Securities | 31.9 | % | ||
Corporate Bonds & Notes | 26.0 | % | ||
Short-Term Investments | 17.9 | % | ||
Municipal Bonds | 3.1 | % | ||
Foreign Government Bonds & Notes | 1.4 | % | ||
U.S. Government Agency Issues | 1.3 | % | ||
Equity Securities | 1.0 | % | ||
Convertible Corporate Bonds | 0.5 | % | ||
Asset-Backed Securities | 0.3 | % | ||
117.9 | % | |||
Other Assets & Liabilities, Net | (17.9 | %) | ||
100.0 | % | |||
(b) | As of September 30, 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 | 71.3 | % | ||
AA | 4.5 | % | ||
A | 9.8 | % | ||
BBB | 5.7 | % | ||
BB | 2.3 | % | ||
B | 1.6 | % | ||
CCC | 0.6 | % | ||
C | 0.1 | % | ||
D | 0.1 | % | ||
Not Rated | 4.0 | % | ||
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 $506,301 or 0.2% of the net assets were in default as of September 30, 2010. | |
(e) | As of September 30, 2010, 0.4% of the Fund’s net assets were reported illiquid by the portfolio manager under the Trust’s policy. |
See Notes to Financial Statements | A-15 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
(f) | Open futures contracts outstanding as of September 30, 2010 were as follows: |
Number of | Notional | Unrealized | ||||||||||
Long Futures Outstanding | Contracts | Amount | Appreciation | |||||||||
Eurodollar (12/10) | 120 | $ | 120,000,000 | $ | 166,125 | |||||||
Eurodollar (03/11) | 112 | 112,000,000 | 79,500 | |||||||||
Eurodollar (06/11) | 51 | 51,000,000 | 33,675 | |||||||||
Eurodollar (09/11) | 21 | 21,000,000 | 12,075 | |||||||||
Eurodollar (12/11) | 12 | 12,000,000 | 7,150 | |||||||||
Eurodollar (03/12) | 12 | 12,000,000 | 8,750 | |||||||||
Eurodollar (06/12) | 12 | 12,000,000 | 10,200 | |||||||||
U.S. Treasury 5-Year Notes (12/10) | 19 | 1,900,000 | 25,086 | |||||||||
$ | 342,561 | |||||||||||
(g) | Forward foreign currency contracts outstanding as of September 30, 2010 were as follows: |
Principal | ||||||||||||||
Contracts | Amount | Unrealized | ||||||||||||
to Buy or | Covered by | Appreciation | ||||||||||||
to Sell | Currency | Contracts | Expiration | Counterparty | (Depreciation) | |||||||||
Buy | AUD | 1,185,000 | 10/10 | RBS | $ | 91,484 | ||||||||
Buy | AUD | 77,000 | 10/10 | UBS | 448 | |||||||||
Buy | BRL | 711,000 | 10/10 | DUB | 19,850 | |||||||||
Buy | BRL | 3,406,200 | 10/10 | HSB | 111,385 | |||||||||
Buy | BRL | 2,539,292 | 10/10 | JPM | 86,004 | |||||||||
Buy | BRL | 355,700 | 10/10 | MSC | 10,043 | |||||||||
Buy | BRL | 176,800 | 10/10 | RBC | 4,402 | |||||||||
Buy | BRL | 1,606,410 | 10/10 | RBS | 48,596 | |||||||||
Sell | BRL | 7,373,082 | 10/10 | HSB | (188,480 | ) | ||||||||
Sell | BRL | 1,422,320 | 10/10 | MSC | (40,834 | ) | ||||||||
Buy | BRL | 7,812,597 | 12/10 | HSB | 194,873 | |||||||||
Buy | BRL | 1,422,320 | 12/10 | MSC | 40,060 | |||||||||
Buy | BRL | 173,310 | 12/10 | RBS | 1,058 | |||||||||
Buy | BRL | 92,975 | 09/11 | MSC | 752 | |||||||||
Buy | CAD | 103,223 | 10/10 | BNP | 324 | |||||||||
Buy | CAD | 103,000 | 11/10 | CIT | 270 | |||||||||
Buy | CAD | 103,000 | 11/10 | CIT | (279 | ) | ||||||||
Buy | CAD | 1,230,000 | 11/10 | DUB | (1,344 | ) | ||||||||
Buy | CAD | 308,000 | 11/10 | JPM | (607 | ) | ||||||||
Sell | CAD | 698,000 | 11/10 | CSF | (14,664 | ) | ||||||||
Sell | CAD | 528,000 | 11/10 | MSC | (10,871 | ) | ||||||||
Sell | CAD | 184,000 | 11/10 | RBS | 1,105 | |||||||||
Buy | CNY | 205,638 | 11/10 | BRC | (245 | ) | ||||||||
Buy | CNY | 331,675 | 11/10 | CIT | (403 | ) | ||||||||
Buy | CNY | 846,372 | 11/10 | DUB | (1,181 | ) | ||||||||
Buy | CNY | 330,850 | 11/10 | MSC | (526 | ) | ||||||||
Buy | CNY | 4,516,754 | 04/11 | BRC | (3,921 | ) | ||||||||
Buy | CNY | 2,732,816 | 04/11 | DUB | 3,232 | |||||||||
Buy | CNY | 1,972,760 | 04/11 | HSB | (1,839 | ) | ||||||||
Buy | CNY | 1,000,375 | 04/11 | MSC | (818 | ) | ||||||||
Sell | DKK | 4,741,000 | 11/10 | CIT | (34,651 | ) | ||||||||
Sell | EUR | 3,856,000 | 10/10 | BRC | (312,321 | ) | ||||||||
Buy | EUR | 967,000 | 11/10 | DUB | 79,328 | |||||||||
Sell | EUR | 126,000 | 11/10 | BRC | (9,386 | ) | ||||||||
Sell | EUR | 1,000,000 | 11/10 | UBS | (15,395 | ) | ||||||||
Buy | GBP | 100,000 | 10/10 | CIT | (806 | ) | ||||||||
Buy | GBP | 300,000 | 10/10 | HSB | (2,656 | ) | ||||||||
Buy | GBP | 400,000 | 12/10 | CIT | 1,410 | |||||||||
Buy | GBP | 106,000 | 12/10 | RBS | (780 | ) | ||||||||
Sell | GBP | 500,000 | 12/10 | UBS | (6,090 | ) | ||||||||
Buy | IDR | 1,717,873,000 | 10/10 | CIT | 22,248 | |||||||||
Buy | IDR | 203,400,000 | 10/10 | RBS | 2,763 | |||||||||
Buy | IDR | 397,332,000 | 10/10 | UBS | 4,466 | |||||||||
Sell | IDR | 696,605,000 | 10/10 | BRC | (87 | ) | ||||||||
Sell | IDR | 714,200,000 | 10/10 | CIT | (323 | ) | ||||||||
Sell | IDR | 907,800,000 | 10/10 | HSB | (245 | ) | ||||||||
Buy | IDR | 902,000,000 | 11/10 | BRC | 81 | |||||||||
Buy | IDR | 896,500,000 | 11/10 | BRC | (529 | ) | ||||||||
Buy | IDR | 901,500,000 | 11/10 | HSB | 26 | |||||||||
Buy | IDR | 367,720,000 | 04/11 | CIT | (185 | ) | ||||||||
Buy | IDR | 976,805,000 | 07/11 | BRC | (1,580 | ) |
See Notes to Financial Statements | A-16 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
Principal | ||||||||||||||
Contracts | Amount | Unrealized | ||||||||||||
to Buy or | Covered by | Appreciation | ||||||||||||
to Sell | Currency | Contracts | Expiration | Counterparty | (Depreciation) | |||||||||
Buy | IDR | 476,900,000 | 07/11 | CIT | $ | 703 | ||||||||
Buy | IDR | 714,200,000 | 07/11 | CIT | (889 | ) | ||||||||
Buy | IDR | 948,750,000 | 07/11 | HSB | 868 | |||||||||
Buy | IDR | 1,186,800,000 | 07/11 | HSB | (1,681 | ) | ||||||||
Buy | IDR | 283,200,000 | 07/11 | JPM | 109 | |||||||||
Buy | IDR | 189,000,000 | 07/11 | RBS | 94 | |||||||||
Buy | INR | 4,658,000 | 11/10 | BRC | 2,838 | |||||||||
Buy | INR | 4,523,000 | 11/10 | BRC | (142 | ) | ||||||||
Sell | JPY | 276,566,000 | 11/10 | MSC | (27,715 | ) | ||||||||
Buy | KRW | 10,210,000 | 11/10 | BRC | 217 | |||||||||
Buy | KRW | 214,960,961 | 11/10 | CIT | 3,395 | |||||||||
Buy | KRW | 101,724,000 | 11/10 | DUB | 2,402 | |||||||||
Buy | KRW | 23,460,000 | 11/10 | GSC | 537 | |||||||||
Buy | KRW | 215,300,500 | 11/10 | JPM | 3,746 | |||||||||
Buy | KRW | 41,839,600 | 11/10 | JPM | (374 | ) | ||||||||
Buy | KRW | 262,677,000 | 11/10 | MSC | 6,524 | |||||||||
Buy | KRW | 138,965,400 | 11/10 | MSC | (1,351 | ) | ||||||||
Buy | KRW | 116,150,000 | 11/10 | RBS | 1,677 | |||||||||
Sell | KRW | 65,202,211 | 11/10 | BRC | (3,248 | ) | ||||||||
Sell | KRW | 435,830,000 | 11/10 | CIT | (27,573 | ) | ||||||||
Sell | KRW | 150,350,000 | 11/10 | JPM | (10,003 | ) | ||||||||
Sell | KRW | 29,300,000 | 11/10 | RBS | (1,586 | ) | ||||||||
Buy | KRW | 345,428,000 | 01/11 | MSC | 1,516 | |||||||||
Buy | KRW | 113,910,000 | 01/11 | MSC | (571 | ) | ||||||||
Buy | MXN | 9,926,598 | 02/11 | BRC | 5,627 | |||||||||
Buy | MXN | 3,806,350 | 02/11 | MSC | (2,153 | ) | ||||||||
Buy | MYR | 390,167 | 10/10 | BRC | 11,327 | |||||||||
Buy | MYR | 465,638 | 10/10 | CIT | 12,484 | |||||||||
Buy | MYR | 186,000 | 10/10 | DUB | 2,972 | |||||||||
Sell | MYR | 160,000 | 10/10 | BRC | (15 | ) | ||||||||
Buy | MYR | 160,000 | 02/11 | BRC | (116 | ) | ||||||||
Buy | MYR | 310,000 | 02/11 | HSB | (441 | ) | ||||||||
Buy | PHP | 2,223,000 | 11/10 | BRC | 2,573 | |||||||||
Buy | PHP | 7,172,000 | 11/10 | CIT | 7,765 | |||||||||
Buy | PHP | 8,804,000 | 11/10 | CIT | (352 | ) | ||||||||
Buy | PHP | 2,130,000 | 11/10 | DUB | 2,515 | |||||||||
Buy | PHP | 8,972,000 | 06/11 | JPM | (822 | ) | ||||||||
Buy | SGD | 132,160 | 03/11 | CIT | 493 | |||||||||
Buy | SGD | 131,906 | 03/11 | HSB | 300 | |||||||||
Buy | TRY | 151,500 | 01/11 | CIT | 2,583 | |||||||||
Buy | TRY | 147,550 | 01/11 | HSB | (91 | ) | ||||||||
Buy | TRY | 302,380 | 01/11 | JPM | 4,747 | |||||||||
Buy | TWD | 231,000 | 10/10 | BRC | 9 | |||||||||
Buy | TWD | 2,692,215 | 10/10 | BRC | (812 | ) | ||||||||
Buy | TWD | 638,000 | 10/10 | CIT | 87 | |||||||||
Buy | TWD | 46,245 | 10/10 | CIT | (7 | ) | ||||||||
Buy | TWD | 2,262,270 | 10/10 | DUB | (577 | ) | ||||||||
Buy | TWD | 104,455 | 01/11 | DUB | 31 | |||||||||
Buy | TWD | 344,000 | 01/11 | DUB | (89 | ) | ||||||||
Buy | TWD | 274,000 | 01/11 | JPM | 110 | |||||||||
Buy | TWD | 423,000 | 01/11 | MSC | 103 | |||||||||
Buy | TWD | 229,000 | 01/11 | UBS | 118 | |||||||||
Buy | ZAR | 718,750 | 10/10 | BRC | 2,646 | |||||||||
Buy | ZAR | 733,010 | 10/10 | HSB | 4,683 | |||||||||
Buy | ZAR | 723,080 | 10/10 | JPM | 3,264 | |||||||||
Buy | ZAR | 731,575 | 10/10 | MSC | 4,478 | |||||||||
Buy | ZAR | 2,164,794 | 10/10 | UBS | 9,158 | |||||||||
Buy | ZAR | 760,150 | 09/11 | BRC | 3,342 | |||||||||
$ | 98,595 | |||||||||||||
See Notes to Financial Statements | A-17 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
(h) | Transactions in written options for the six-month period ended September 30, 2010 were as follows: |
Number of | Notional Amount | |||||||||||
Contracts | in $ | Premium | ||||||||||
Outstanding, March 31, 2010 | 401 | 86,200,000 | $ | 836,411 | ||||||||
Call Options Written | 45 | 22,600,000 | 125,943 | |||||||||
Put Options Written | 43 | 69,700,000 | 676,535 | |||||||||
Call Options Closed | (30 | ) | (6,600,000 | ) | (42,314 | ) | ||||||
Call Options Expired | (100 | ) | (34,400,000 | ) | (237,315 | ) | ||||||
Put Options Expired | (359 | ) | (54,800,000 | ) | (634,055 | ) | ||||||
Outstanding, September 30, 2010 | — | 82,700,000 | $ | 725,205 | ||||||||
(i) | Premiums received and value of written options outstanding as of September 30, 2010 were as follows: |
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+0.00%)10 - | ||||||||||||||||||||
Inflation Adjustment) or $0 | 03/12/20 | CIT | $ | 1,200,000 | $ | 10,320 | $ | (15,005 | ) | |||||||||||||
Floor — OTC U.S. CPI Urban Consumers NSA | 217.97 | Maximum of ((1+0.00%)10 - | ||||||||||||||||||||
Inflation Adjustment) or $0 | 09/29/20 | CIT | 600,000 | 7,740 | (7,740 | ) | ||||||||||||||||
$ | 18,060 | $ | (22,745 | ) | ||||||||||||||||||
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 5-Year Interest Rate Swap | Receive | 1.450 | % | 10/29/10 | CIT | $ | 600,000 | $ | 900 | $ | (1,111 | ) | ||||||||||||
Call — OTC 5-Year Interest Rate Swap | Receive | 1.450 | % | 10/29/10 | DUB | 2,500,000 | 3,598 | (4,628 | ) | |||||||||||||||
Call — OTC 5-Year Interest Rate Swap | Receive | 1.450 | % | 10/29/10 | MSC | 2,600,000 | 5,460 | (4,813 | ) | |||||||||||||||
Put — OTC 5-Year Interest Rate Swap | Pay | 1.950 | % | 10/29/10 | CIT | 1,500,000 | 7,425 | (289 | ) | |||||||||||||||
Put — OTC 5-Year Interest Rate Swap | Pay | 1.950 | % | 10/29/10 | MSC | 2,600,000 | 9,360 | (500 | ) | |||||||||||||||
Call — OTC 10-Year Interest Rate Swap | Receive | 3.250 | % | 10/29/10 | MSC | 2,100,000 | 14,070 | (123,497 | ) | |||||||||||||||
Call — OTC 10-Year Interest Rate Swap | Receive | 3.250 | % | 10/29/10 | RBS | 4,900,000 | 24,010 | (288,159 | ) | |||||||||||||||
Put — OTC 10-Year Interest Rate Swap | Pay | 5.000 | % | 10/29/10 | MSC | 2,100,000 | 16,800 | — | ||||||||||||||||
Put — OTC 10-Year Interest Rate Swap | Pay | 5.000 | % | 10/29/10 | RBS | 4,900,000 | 48,510 | — | ||||||||||||||||
Put — OTC 5-Year Interest Rate Swap | Pay | 4.000 | % | 12/01/10 | RBS | 1,500,000 | 9,675 | — | ||||||||||||||||
Call — OTC 5-Year Interest Rate Swap | Receive | 1.500 | % | 12/13/10 | MSC | 2,100,000 | 5,827 | (9,222 | ) | |||||||||||||||
Put — OTC 5-Year Interest Rate Swap | Pay | 2.100 | % | 12/13/10 | MSC | 2,100,000 | 9,450 | (2,774 | ) | |||||||||||||||
Put — OTC 10-Year Interest Rate Swap | Pay | 4.000 | % | 06/13/11 | BRC | 400,000 | 5,620 | (2,279 | ) | |||||||||||||||
Put — OTC 10-Year Interest Rate Swap | Pay | 4.000 | % | 06/13/11 | DUB | 1,600,000 | 21,840 | (9,114 | ) | |||||||||||||||
Put — OTC 10-Year Interest Rate Swap | Pay | 4.000 | % | 06/13/11 | RBS | 900,000 | 12,721 | (5,127 | ) | |||||||||||||||
Put — OTC 3-Year Interest Rate Swap | Pay | 2.750 | % | 06/18/12 | DUB | 6,200,000 | 64,360 | (41,175 | ) | |||||||||||||||
Put — OTC 3-Year Interest Rate Swap | Pay | 2.750 | % | 06/18/12 | RBS | 4,400,000 | 43,120 | (29,221 | ) | |||||||||||||||
Put — OTC 3-Year Interest Rate Swap | Pay | 3.000 | % | 06/18/12 | BRC | 4,300,000 | 38,951 | (23,038 | ) | |||||||||||||||
Put — OTC 3-Year Interest Rate Swap | Pay | 3.000 | % | 06/18/12 | CIT | 3,100,000 | 34,590 | (16,609 | ) | |||||||||||||||
Put — OTC 3-Year Interest Rate Swap | Pay | 3.000 | % | 06/18/12 | DUB | 1,900,000 | 21,236 | (10,180 | ) | |||||||||||||||
Put — OTC 3-Year Interest Rate Swap | Pay | 3.000 | % | 06/18/12 | RBS | 6,600,000 | 55,422 | (35,360 | ) | |||||||||||||||
Put — OTC 10-Year Interest Rate Swap | Pay | 10.000 | % | 07/10/12 | MSC | 1,200,000 | 7,230 | (328 | ) | |||||||||||||||
Put — OTC 5-Year Interest Rate Swap | Pay | 3.250 | % | 07/16/12 | CIT | 3,800,000 | 93,949 | (54,025 | ) | |||||||||||||||
Put — OTC 5-Year Interest Rate Swap | Pay | 3.250 | % | 07/16/12 | RBS | 1,200,000 | 30,132 | (17,061 | ) | |||||||||||||||
Put — OTC 2-Year Interest Rate Swap | Pay | 2.250 | % | 09/24/12 | CIT | 700,000 | 4,769 | (4,678 | ) | |||||||||||||||
Put — OTC 2-Year Interest Rate Swap | Pay | 2.250 | % | 09/24/12 | MSC | 900,000 | 5,760 | (6,014 | ) | |||||||||||||||
Put — OTC 2-Year Interest Rate Swap | Pay | 2.250 | % | 09/24/12 | RBS | 14,200,000 | 112,360 | (94,888 | ) | |||||||||||||||
$ | 707,145 | $ | (784,090 | ) | ||||||||||||||||||||
Total Written Options | $ | 725,205 | $ | (806,835 | ) | |||||||||||||||||||
See Notes to Financial Statements | A-18 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
(j) | Swap agreements outstanding as of September 30, 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 | 09/30/10 (3) | Amount (4) | Value (5) | (Received) | Appreciation | ||||||||||||||||||
Health Care Properties 5.950% due 09/15/11 | (0.460%) | 09/20/11 | JPM | 1.132% | $ | 700,000 | $ | 4,488 | $ | — | $ | 4,488 | ||||||||||||||
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 | 09/30/10 (3) | Amount (4) | Value (5) | (Received) | (Depreciation) | ||||||||||||||||||||||
General Electric Capital Corp 6.000% due 06/15/12 | 1.500 | % | 09/20/11 | DUB | 1.228 | % | $ | 100,000 | $ | 311 | $ | — | $ | 311 | ||||||||||||||||
General Electric Capital Corp 5.625% due 09/15/17 | 4.000 | % | 12/20/13 | CIT | 1.681 | % | 200,000 | 14,635 | — | 14,635 | ||||||||||||||||||||
General Electric Capital Corp 5.625% due 09/15/17 | 4.230 | % | 12/20/13 | DUB | 1.681 | % | 200,000 | 16,077 | — | 16,077 | ||||||||||||||||||||
General Electric Capital Corp 5.625% due 09/15/17 | 4.325 | % | 12/20/13 | CIT | 1.681 | % | 200,000 | 16,672 | — | 16,672 | ||||||||||||||||||||
General Electric Capital Corp 6.000% due 06/15/12 | 4.400 | % | 12/20/13 | BRC | 1.681 | % | 200,000 | 17,161 | — | 17,161 | ||||||||||||||||||||
General Electric Capital Corp 6.000% due 06/15/12 | 4.500 | % | 12/20/13 | BRC | 1.681 | % | 300,000 | 26,655 | — | 26,655 | ||||||||||||||||||||
General Electric Capital Corp 6.000% due 06/15/12 | 4.700 | % | 12/20/13 | BRC | 1.681 | % | 400,000 | 38,046 | — | 38,046 | ||||||||||||||||||||
General Electric Capital Corp 5.625% due 09/15/17 | 4.750 | % | 12/20/13 | DUB | 1.681 | % | 400,000 | 38,673 | — | 38,673 | ||||||||||||||||||||
American International Group 6.250% due 05/01/36 | 5.000 | % | 12/20/13 | DUB | 1.855 | % | 500,000 | 49,315 | (46,250 | ) | 95,565 | |||||||||||||||||||
United Mexican States 7.500% due 04/08/33 | 1.000 | % | 03/20/15 | BRC | 1.121 | % | 400,000 | (1,976 | ) | (8,999 | ) | 7,023 | ||||||||||||||||||
United Mexican States 7.500% due 04/08/33 | 1.000 | % | 03/20/15 | CIT | 1.121 | % | 400,000 | (1,976 | ) | (9,184 | ) | 7,208 | ||||||||||||||||||
Japanese Government Bond 2.000% due 03/21/22 D | 1.000 | % | 03/20/15 | DUB | 0.500 | % | 1,000,000 | 22,267 | 11,616 | 10,651 | ||||||||||||||||||||
United Mexican States 7.500% due 04/08/33 | 1.000 | % | 03/20/15 | DUB | 1.121 | % | 200,000 | (988 | ) | (4,592 | ) | 3,604 | ||||||||||||||||||
Brazil Government 12.250% due 03/06/30 | 1.000 | % | 06/20/15 | DUB | 1.099 | % | 1,000,000 | (4,267 | ) | (10,975 | ) | 6,708 | ||||||||||||||||||
United Kingdom GILT 4.250% due 06/07/32 D | 1.000 | % | 06/20/15 | GSC | 0.610 | % | 1,100,000 | 19,997 | 10,163 | 9,834 | ||||||||||||||||||||
Brazil Government 12.250% due 03/06/30 | 1.000 | % | 06/20/15 | HSB | 1.099 | % | 1,000,000 | (3,582 | ) | (10,975 | ) | 7,393 | ||||||||||||||||||
Brazil Government 12.250% due 03/06/30 | 1.000 | % | 09/20/15 | BRC | 1.128 | % | 1,000,000 | (5,798 | ) | (7,735 | ) | 1,937 | ||||||||||||||||||
United Mexican States 7.500% due 04/08/33 | 1.000 | % | 09/20/15 | BRC | 1.180 | % | 1,000,000 | (8,274 | ) | (7,735 | ) | (539 | ) | |||||||||||||||||
Brazil Government 12.250% due 03/06/30 | 1.000 | % | 09/20/15 | HSB | 1.128 | % | 600,000 | (3,479 | ) | (5,961 | ) | 2,482 | ||||||||||||||||||
Brazil Government 12.250% due 03/06/30 | 1.000 | % | 09/20/15 | UBS | 1.128 | % | 500,000 | (2,899 | ) | (4,731 | ) | 1,832 | ||||||||||||||||||
Reynolds American Inc 7.625% due 06/01/16 | 1.280 | % | 06/20/17 | DUB | 1.533 | % | 200,000 | (3,002 | ) | — | (3,002 | ) | ||||||||||||||||||
$ | 223,568 | $ | (95,358 | ) | $ | 318,926 | ||||||||||||||||||||||||
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 | $ | 91 | $ | — | $ | 91 | |||||||||||
Dow Jones CDX NA HY-9 5Y D | 2.080% | 12/20/12 | MER | 1,444,065 | 43,699 | — | 43,699 | |||||||||||||||
Dow Jones CDX NA EM13 5Y | 5.000% | 06/20/15 | BRC | 400,000 | 49,569 | 45,500 | 4,069 | |||||||||||||||
Dow Jones CDX NA EM13 5Y | 5.000% | 06/20/15 | DUB | 900,000 | 111,531 | 117,500 | (5,969 | ) | ||||||||||||||
Dow Jones CDX NA EM13 5Y | 5.000% | 06/20/15 | HSB | 1,200,000 | 159,448 | 135,550 | 23,898 | |||||||||||||||
Dow Jones CDX NA EM13 5Y D | 5.000% | 06/20/15 | MER | 900,000 | 121,306 | 101,250 | 20,056 | |||||||||||||||
Dow Jones CDX NA IG-15 5Y | 1.000% | 12/20/15 | CIT | 2,000,000 | (5,984 | ) | (8,319 | ) | 2,335 | |||||||||||||
Dow Jones CDX NA IG-15 5Y | 1.000% | 12/20/15 | DUB | 1,000,000 | (2,862 | ) | (3,413 | ) | 551 | |||||||||||||
Dow Jones CDX NA IG-15 5Y | 1.000% | 12/20/15 | GSC | 200,000 | (599 | ) | (944 | ) | 345 | |||||||||||||
Dow Jones CDX NA EM14 5Y D | 5.000% | 12/20/15 | BRC | 900,000 | 119,531 | 112,150 | 7,381 | |||||||||||||||
Dow Jones CDX NA HY-15 5Y | 5.000% | 12/20/15 | CIT | 200,000 | (4,974 | ) | (5,312 | ) | 338 | |||||||||||||
Dow Jones CDX NA EM14 5Y D | 5.000% | 12/20/15 | DUB | 500,000 | 66,415 | 63,850 | 2,565 | |||||||||||||||
Dow Jones CDX NA EM14 5Y D | 5.000% | 12/20/15 | HSB | 200,000 | 26,565 | 26,100 | 465 | |||||||||||||||
Dow Jones CDX NA EM14 5Y D | 5.000% | 12/20/15 | MER | 400,000 | 53,129 | 52,000 | 1,129 | |||||||||||||||
Dow Jones CDX NA IG-9 10Y | 0.548% | 12/20/17 | GSC | 96,450 | 985 | — | 985 | |||||||||||||||
$ | 737,850 | $ | 635,912 | $ | 101,938 | |||||||||||||||||
Total Credit Default Swaps | $ | 965,906 | $ | 540,554 | $ | 425,352 | ||||||||||||||||
(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. |
See Notes to Financial Statements | A-19 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
(3) | Implied credit spreads, represented in absolute terms, utilized in determining the 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, in comparison to narrower 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 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) | ||||||||||||||||||||
3-Month Australian Bank Bill | CIT | Pay | 4.500 | % | 06/15/11 | AUD 100,000 | $ | (243 | ) | $ | 115 | $ | (358 | ) | ||||||||||||||
3-Month Australian Bank Bill | DUB | Pay | 4.500 | % | 06/15/11 | 4,720,000 | (11,442 | ) | 4,828 | (16,270 | ) | |||||||||||||||||
3-Month Australian Bank Bill | MSC | Pay | 4.500 | % | 06/15/11 | 3,600,000 | (8,946 | ) | 3,423 | (12,369 | ) | |||||||||||||||||
6-Month Australian Bank Bill | CSF | Pay | 6.250 | % | 09/15/11 | 1,200,000 | 13,417 | 129 | 13,288 | |||||||||||||||||||
BRL — CDI Compounded | MSC | Pay | 10.115 | % | 01/02/12 | BRL 8,900,000 | (172,994 | ) | (199,363 | ) | 26,369 | |||||||||||||||||
BRL — CDI Compounded | GSC | Pay | 10.150 | % | 01/02/12 | 6,100,000 | (113,779 | ) | (23,781 | ) | (89,998 | ) | ||||||||||||||||
BRL — CDI Compounded | UBS | Pay | 10.575 | % | 01/02/12 | 1,200,000 | (9,937 | ) | (31,680 | ) | 21,743 | |||||||||||||||||
BRL — CDI Compounded | BRC | Pay | 10.600 | % | 01/02/12 | 1,500,000 | 5,375 | — | 5,375 | |||||||||||||||||||
BRL — CDI Compounded | HSB | Pay | 10.610 | % | 01/02/12 | 1,400,000 | 5,199 | — | 5,199 | |||||||||||||||||||
BRL — CDI Compounded | BRC | Pay | 10.680 | % | 01/02/12 | 5,600,000 | (34,144 | ) | (65,567 | ) | 31,423 | |||||||||||||||||
BRL — CDI Compounded | BRC | Pay | 10.835 | % | 01/02/12 | 600,000 | 4,059 | 1,014 | 3,045 | |||||||||||||||||||
BRL — CDI Compounded | GSC | Pay | 10.990 | % | 01/02/12 | 600,000 | 3,923 | 840 | 3,083 | |||||||||||||||||||
BRL — CDI Compounded | HSB | Pay | 11.140 | % | 01/02/12 | 900,000 | 9,428 | 4,636 | 4,792 | |||||||||||||||||||
BRL — CDI Compounded | HSB | Pay | 11.360 | % | 01/02/12 | 800,000 | 7,402 | 3,212 | 4,190 | |||||||||||||||||||
BRL — CDI Compounded D | MSC | Pay | 11.630 | % | 01/02/12 | 4,200,000 | 20,010 | (1,547 | ) | 21,557 | ||||||||||||||||||
BRL — CDI Compounded | RBS | Pay | 12.080 | % | 01/02/12 | 400,000 | 3,011 | 748 | 2,263 | |||||||||||||||||||
BRL — CDI Compounded | MER | Pay | 12.540 | % | 01/02/12 | 4,000,000 | 117,094 | (20,439 | ) | 137,533 | ||||||||||||||||||
BRL — CDI Compounded | MSC | Pay | 12.540 | % | 01/02/12 | 900,000 | 26,346 | (6,048 | ) | 32,394 | ||||||||||||||||||
BRL — CDI Compounded | UBS | Pay | 12.540 | % | 01/02/12 | 3,000,000 | 87,820 | (14,783 | ) | 102,603 | ||||||||||||||||||
BRL — CDI Compounded | HSB | Pay | 14.765 | % | 01/02/12 | 100,000 | 5,824 | 667 | 5,157 | |||||||||||||||||||
BRL — CDI Compounded | MER | Pay | 14.765 | % | 01/02/12 | 200,000 | 11,647 | 1,029 | 10,618 | |||||||||||||||||||
6-Month Australian Bank Bill | UBS | Pay | 6.000 | % | 09/15/12 | AUD 6,100,000 | 89,864 | — | 89,864 | |||||||||||||||||||
BRL — CDI Compounded | HSB | Pay | 11.880 | % | 01/02/13 | BRL 1,300,000 | 5,976 | (989 | ) | 6,965 | ||||||||||||||||||
BRL — CDI Compounded | GSC | Pay | 11.890 | % | 01/02/13 | 200,000 | 1,209 | 314 | 895 | |||||||||||||||||||
BRL — CDI Compounded | HSB | Pay | 11.890 | % | 01/02/13 | 2,000,000 | 12,092 | 4,283 | 7,809 | |||||||||||||||||||
BRL — CDI Compounded | BRC | Pay | 11.910 | % | 01/02/13 | 1,000,000 | 5,421 | 2,348 | 3,073 | |||||||||||||||||||
BRL — CDI Compounded | GSC | Pay | 11.930 | % | 01/02/13 | 900,000 | 5,619 | (1,293 | ) | 6,912 | ||||||||||||||||||
BRL — CDI Compounded | MSC | Pay | 11.980 | % | 01/02/13 | 600,000 | 4,159 | 935 | 3,224 | |||||||||||||||||||
BRL — CDI Compounded | HSB | Pay | 12.300 | % | 01/02/13 | 1,300,000 | 14,815 | 3,928 | 10,887 | |||||||||||||||||||
BRL — CDI Compounded D | MSC | Pay | 12.590 | % | 01/02/13 | 2,400,000 | 24,823 | 9,023 | 15,800 | |||||||||||||||||||
BRL — CDI Compounded D | MSC | Pay | 11.890 | % | 01/02/14 | 3,500,000 | 7,707 | (21 | ) | 7,728 | ||||||||||||||||||
BRL — CDI Compounded | UBS | Pay | 12.250 | % | 01/02/14 | 600,000 | 6,525 | 1,667 | 4,858 | |||||||||||||||||||
BRL — CDI Compounded | MSC | Pay | 12.510 | % | 01/02/14 | 200,000 | 2,960 | 920 | 2,040 | |||||||||||||||||||
BRL — CDI Compounded | HSB | Pay | 12.540 | % | 01/02/14 | 100,000 | 1,521 | 648 | 873 | |||||||||||||||||||
BRL — CDI Compounded | GSC | Pay | 12.650 | % | 01/02/14 | 1,200,000 | 20,139 | 9,626 | 10,513 | |||||||||||||||||||
28-Day Mexico Interbank TIIE Banxico | HSB | Pay | 7.330 | % | 01/28/15 | MXN 3,200,000 | 16,115 | 1,414 | 14,701 | |||||||||||||||||||
6-Month EUR-LIBOR | BRC | Pay | 2.000 | % | 09/15/15 | EUR 1,700,000 | 5,455 | (14,748 | ) | 20,203 | ||||||||||||||||||
6-Month EUR-LIBOR | MSC | Pay | 2.000 | % | 09/15/15 | 2,900,000 | 9,303 | (18,102 | ) | 27,405 | ||||||||||||||||||
28-Day Mexico Interbank TIIE Banxico | GSC | Pay | 8.170 | % | 11/04/16 | MXN 1,200,000 | 10,445 | 1,757 | 8,688 | |||||||||||||||||||
3-Month Canadian Bank Bill | RBS | Pay | 5.700 | % | 12/18/24 | CAD 2,100,000 | 70,275 | (1,439 | ) | 71,714 | ||||||||||||||||||
Total Interest Rate Swaps | $ | 283,493 | $ | (342,296 | ) | $ | 625,789 | |||||||||||||||||||||
Total Swap Agreements | $ | 1,249,399 | $ | 198,258 | $ | 1,051,141 | ||||||||||||||||||||||
(k) | As of September 30, 2010, securities with total aggregate values of $79,994 and $341,786 were fully or partially segregated with the broker(s)/custodian as collateral for open futures contracts and swap contracts, respectively. |
See Notes to Financial Statements | A-20 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
(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 11 in Notes to Financial Statements) as of September 30, 2010:
Level 2 | Level 3 | |||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||
September 30, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||
Assets | Convertible Preferred Stocks (1) | $ | 3,089,687 | $ | 3,089,687 | $ | — | $ | — | |||||||||
Preferred Stocks (1) | 3,480 | 3,480 | — | — | ||||||||||||||
Corporate Bonds & Notes | 77,633,851 | — | 77,633,851 | — | ||||||||||||||
Convertible Corporate Bonds | 1,377,250 | — | 1,377,250 | — | ||||||||||||||
Mortgage-Backed Securities | 95,212,329 | — | 93,845,832 | 1,366,497 | ||||||||||||||
Asset-Backed Securities | 900,517 | — | 900,517 | — | ||||||||||||||
U.S. Government Agency Issues | 3,717,508 | — | 3,717,508 | — | ||||||||||||||
U.S. Treasury Obligations | 102,781,225 | — | 102,781,225 | — | ||||||||||||||
Foreign Government Bonds & Notes | 4,271,666 | — | 4,271,666 | — | ||||||||||||||
Municipal Bonds | 9,250,973 | — | 9,250,973 | — | ||||||||||||||
Short-Term Investments | 53,433,694 | 1,055,520 | 52,378,174 | ��� | ||||||||||||||
Derivatives (2) | ||||||||||||||||||
Credit Contracts | 1,016,566 | — | 1,016,566 | — | ||||||||||||||
Foreign Exchange Contracts | 830,249 | — | 830,249 | — | ||||||||||||||
Interest Rate Contracts | 977,539 | 342,561 | 634,978 | — | ||||||||||||||
2,824,354 | 342,561 | 2,481,793 | — | |||||||||||||||
354,496,534 | 4,491,248 | 348,638,789 | 1,366,497 | |||||||||||||||
Liabilities | Derivatives (2) | |||||||||||||||||
Credit Contracts | (50,660 | ) | — | (50,660 | ) | — | ||||||||||||
Foreign Exchange Contracts | (731,654 | ) | — | (731,654 | ) | — | ||||||||||||
Interest Rate Contracts | (1,158,320 | ) | — | (1,143,315 | ) | (15,005 | ) | |||||||||||
(1,940,634 | ) | — | (1,925,629 | ) | (15,005 | ) | ||||||||||||
Total | $ | 352,555,900 | $ | 4,491,248 | $ | 346,713,160 | $ | 1,351,492 | ||||||||||
The following is a reconciliation of investments for significant unobservable inputs (Level 3) used in valuing the Fund’s assets and liabilities (See Note 11 in Notes to Financial Statements) for the six month period ended September 30, 2010:
Change in Net | ||||||||||||||||||||||||||||||||
Unrealized | ||||||||||||||||||||||||||||||||
Appreciation | ||||||||||||||||||||||||||||||||
Total Change | (Depreciation) | |||||||||||||||||||||||||||||||
in Net | Transfers | on Level 3 | ||||||||||||||||||||||||||||||
Value, | Net | Accrued | Total Net | Unrealized | In and/ | Holdings Held at | ||||||||||||||||||||||||||
Beginning | Purchases | Discounts | Realized | Appreciation | or Out of | Value, | the End of Period, | |||||||||||||||||||||||||
of Period | (Sales) | (Premiums) | Gains (Losses) | (Depreciation) | Level 3 | End of Period | if Applicable | |||||||||||||||||||||||||
Mortgage-Backed Securities | $ | — | $ | 1,339,154 | $ | — | $ | — | $ | 27,343 | $ | — | $ | 1,366,497 | $ | 27,343 | ||||||||||||||||
Derivatives (2) | ||||||||||||||||||||||||||||||||
Credit Contracts | (7,024 | ) | — | — | 8,972 | (1,948 | ) | — | — | — | ||||||||||||||||||||||
Interest Rate Contracts | (9,872 | ) | — | — | — | (5,133 | ) | — | (15,005 | ) | (5,133 | ) | ||||||||||||||||||||
$ | (16,896 | ) | $ | 1,339,154 | $ | — | $ | 8,972 | $ | 20,262 | $ | — | $ | 1,351,492 | $ | 22,210 | ||||||||||||||||
(1) | For equity securities categorized in a single level, refer to the schedule of investments for further industry breakout. | |
(2) | Investments in derivatives include open futures contracts, swap contracts, written options, and forward foreign currency contracts. |
See Notes to Financial Statements | A-21 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL SHORT DURATION BOND FUND
Schedule of Investments
September 30, 2010 (Unaudited)
PL SHORT DURATION BOND FUND
Schedule of Investments
September 30, 2010 (Unaudited)
Principal | ||||||||
Amount | Value | |||||||
CORPORATE BONDS & NOTES — 39.4% | ||||||||
Consumer Discretionary — 2.9% | ||||||||
Comcast Cable Communications Holdings Inc | ||||||||
8.375% due 03/15/13 | $ | 650,000 | $ | 755,318 | ||||
Cox Communications Inc | ||||||||
7.125% due 10/01/12 | 325,000 | 359,908 | ||||||
NBC Universal Inc | ||||||||
2.100% due 04/01/14 ~ ∆ | 250,000 | 251,456 | ||||||
Reed Elsevier Capital Inc | ||||||||
4.625% due 06/15/12 | 500,000 | 524,292 | ||||||
Thomson Reuters Corp (Canada) | ||||||||
5.700% due 10/01/14 | 250,000 | 287,033 | ||||||
Time Warner Cable Inc | ||||||||
5.400% due 07/02/12 | 381,000 | 408,334 | ||||||
2,586,341 | ||||||||
Consumer Staples — 2.7% | ||||||||
Anheuser-Busch InBev Worldwide Inc | ||||||||
3.000% due 10/15/12 | 375,000 | 389,485 | ||||||
7.200% due 01/15/14 ~ | 175,000 | 204,109 | ||||||
General Mills Inc | ||||||||
5.250% due 08/15/13 | 200,000 | 223,402 | ||||||
6.000% due 02/15/12 | 200,000 | 213,410 | ||||||
Kellogg Co | ||||||||
5.125% due 12/03/12 | 300,000 | 326,100 | ||||||
Kraft Foods Inc | ||||||||
2.625% due 05/08/13 | 275,000 | 285,254 | ||||||
6.000% due 02/11/13 | 75,000 | 83,350 | ||||||
Philip Morris International Inc | ||||||||
6.875% due 03/17/14 | 325,000 | 383,589 | ||||||
The Kroger Co | ||||||||
6.750% due 04/15/12 | 100,000 | 108,436 | ||||||
Wal-Mart Stores Inc | ||||||||
3.200% due 05/15/14 | 250,000 | 267,987 | ||||||
2,485,122 | ||||||||
Energy — 1.5% | ||||||||
BP Capital Markets PLC (United Kingdom) | ||||||||
3.125% due 10/01/15 | 225,000 | 226,442 | ||||||
Enterprise Products Operating LLC | ||||||||
4.600% due 08/01/12 | 150,000 | 158,031 | ||||||
6.375% due 02/01/13 | 100,000 | 109,090 | ||||||
7.625% due 02/15/12 | 100,000 | 107,575 | ||||||
Williams Partners LP | ||||||||
3.800% due 02/15/15 ~ | 325,000 | 342,415 | ||||||
XTO Energy Inc | ||||||||
5.900% due 08/01/12 | 100,000 | 109,157 | ||||||
7.500% due 04/15/12 | 300,000 | 330,691 | ||||||
1,383,401 | ||||||||
Financials — 23.9% | ||||||||
Banco Bilbao Vizcaya Argentaria | ||||||||
2.450% due 06/22/12 | 2,400,000 | 2,460,379 | ||||||
Bank of America Corp | ||||||||
0.490% due 06/22/12 § | 1,200,000 | 1,205,744 | ||||||
Bank of Tokyo-Mitsubishi UFJ Ltd (Japan) | ||||||||
2.600% due 01/22/13 ~ | 125,000 | 128,924 | ||||||
BB&T Corp | ||||||||
3.850% due 07/27/12 | 250,000 | 262,098 | ||||||
BRFkredit AS (Denmark) | ||||||||
2.050% due 04/15/13 ~ | 800,000 | 820,712 | ||||||
Citigroup Funding Inc | ||||||||
2.125% due 07/12/12 | 1,000,000 | 1,028,304 | ||||||
Citigroup Inc | ||||||||
2.125% due 04/30/12 | 2,300,000 | 2,359,453 | ||||||
Commonwealth Bank of Australia (Australia) | ||||||||
2.500% due 12/10/12 ~ | 100,000 | 103,989 | ||||||
FIH Erhvervsbank (Denmark) | ||||||||
2.000% due 06/12/13 ~ | 800,000 | 818,786 | ||||||
General Electric Capital Corp | ||||||||
2.000% due 09/28/12 | 800,000 | 822,270 | ||||||
2.125% due 12/21/12 | 1,200,000 | 1,238,854 | ||||||
General Motors Acceptance Corp LLC | ||||||||
1.750% due 10/30/12 | 1,600,000 | 1,637,672 | ||||||
2.200% due 12/19/12 | 500,000 | 517,103 | ||||||
HSBC Finance Corp | ||||||||
0.628% due 08/09/11 § | 100,000 | 99,902 | ||||||
0.768% due 04/24/12 § | 250,000 | 248,067 | ||||||
Intesa Sanpaolo (Italy) | ||||||||
2.375% due 12/21/12 | 275,000 | 275,509 | ||||||
Kreditanstalt fuer Wiederaufbau (Germany) | ||||||||
3.750% due 06/27/11 | 800,000 | 820,368 | ||||||
Lloyds TSB Bank PLC (United Kingdom) | ||||||||
4.375% due 01/12/15 ~ | 150,000 | 153,808 | ||||||
MassMutual Global Funding II | ||||||||
0.789% due 09/27/13 § ~ ∆ | 450,000 | 449,735 | ||||||
MetLife Inc | ||||||||
2.375% due 02/06/14 | 125,000 | 126,453 | ||||||
Metropolitan Life Global Funding I | ||||||||
2.500% due 01/11/13 ~ | 525,000 | 537,886 | ||||||
5.125% due 06/10/14 ~ | 250,000 | 277,676 | ||||||
Prudential Financial Inc | ||||||||
2.750% due 01/14/13 | 325,000 | 333,142 | ||||||
5.100% due 09/20/14 | 100,000 | 109,447 | ||||||
Rabobank Nederland NV (Netherlands) | ||||||||
4.200% due 05/13/14 ~ | 150,000 | 159,965 | ||||||
Reinsurance Group of America Inc | ||||||||
6.750% due 12/15/11 | 175,000 | 183,196 | ||||||
Simon Property Group LP | ||||||||
4.200% due 02/01/15 | 275,000 | 295,493 | ||||||
Sovereign Bank | ||||||||
5.125% due 03/15/13 | 350,000 | 366,891 | ||||||
Standard Chartered PLC (United Kingdom) | ||||||||
3.850% due 04/27/15 ~ | 175,000 | 182,776 | ||||||
Sun Life Financial Global Funding LP | ||||||||
0.784% due 10/06/13 § ~ | 375,000 | 364,828 | ||||||
Suncorp-Metway Ltd (Australia) | ||||||||
1.776% due 04/15/11 § ~ | 900,000 | 905,653 | ||||||
The Bear Stearns Cos Inc LLC | ||||||||
6.950% due 08/10/12 | 500,000 | 552,923 | ||||||
The Royal Bank of Scotland PLC (United Kingdom) | ||||||||
3.400% due 08/23/13 | 225,000 | 230,829 | ||||||
US Central Federal Credit Union | ||||||||
1.900% due 10/19/12 | 300,000 | 307,827 | ||||||
Wachovia Corp | ||||||||
5.500% due 05/01/13 | 475,000 | 522,539 | ||||||
Waddell & Reed Financial Inc | ||||||||
5.600% due 01/15/11 | 150,000 | 152,044 | ||||||
WEA Finance LLC | ||||||||
5.400% due 10/01/12 ~ | 375,000 | 400,171 | ||||||
Western Corporate Federal Credit Union | ||||||||
1.750% due 11/02/12 | 200,000 | 204,593 | ||||||
21,666,009 | ||||||||
Health Care — 1.5% | ||||||||
Express Scripts Inc | ||||||||
5.250% due 06/15/12 | 225,000 | 240,304 | ||||||
Merck & Co Inc | ||||||||
1.875% due 06/30/11 | 125,000 | 126,453 | ||||||
Novartis Capital Corp | ||||||||
1.900% due 04/24/13 | 400,000 | 410,890 | ||||||
Roche Holdings Inc | ||||||||
5.000% due 03/01/14 ~ | 225,000 | 251,829 | ||||||
St. Jude Medical Inc | ||||||||
2.200% due 09/15/13 | 350,000 | 358,443 | ||||||
1,387,919 | ||||||||
See Notes to Financial Statements | A-22 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL SHORT DURATION BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL SHORT DURATION BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
Principal | ||||||||
Amount | Value | |||||||
Industrials — 1.0% | ||||||||
CSX Corp | ||||||||
6.750% due 03/15/11 | $ | 100,000 | $ | 102,530 | ||||
Tyco International Finance SA (Luxembourg) | ||||||||
6.000% due 11/15/13 | 300,000 | 340,262 | ||||||
Waste Management Inc | ||||||||
5.000% due 03/15/14 | 150,000 | 165,178 | ||||||
6.375% due 11/15/12 | 250,000 | 274,416 | ||||||
882,386 | ||||||||
Information Technology — 1.1% | ||||||||
Dell Inc | ||||||||
1.400% due 09/10/13 | 275,000 | 276,246 | ||||||
Fiserv Inc | ||||||||
6.125% due 11/20/12 | 350,000 | 382,111 | ||||||
Hewlett-Packard Co | ||||||||
2.250% due 05/27/11 | 350,000 | 354,647 | ||||||
1,013,004 | ||||||||
Telecommunication Services — 3.1% | ||||||||
Rogers Communications Inc (Canada) | ||||||||
5.500% due 03/15/14 | 50,000 | 56,107 | ||||||
6.250% due 06/15/13 | 50,000 | 56,304 | ||||||
6.375% due 03/01/14 | 125,000 | 144,142 | ||||||
7.875% due 05/01/12 | 150,000 | 165,688 | ||||||
Telecom Italia Capital SA (Luxembourg) | ||||||||
5.250% due 11/15/13 | 375,000 | 403,224 | ||||||
Telefonica Emisiones SAU (Spain) | ||||||||
5.855% due 02/04/13 | 450,000 | 491,343 | ||||||
Verizon Wireless Capital LLC | ||||||||
3.750% due 05/20/11 | 775,000 | 790,468 | ||||||
7.375% due 11/15/13 | 100,000 | 118,428 | ||||||
Vodafone Group PLC (United Kingdom) | ||||||||
5.350% due 02/27/12 | 550,000 | 582,702 | ||||||
2,808,406 | ||||||||
Utilities — 1.7% | ||||||||
CenterPoint Energy Resources Corp | ||||||||
7.875% due 04/01/13 | 75,000 | 86,418 | ||||||
Duke Energy Corp | ||||||||
6.300% due 02/01/14 | 225,000 | 257,307 | ||||||
Enel Finance International SA (Luxembourg) | ||||||||
5.700% due 01/15/13 ~ ∆ | 250,000 | 269,848 | ||||||
FirstEnergy Corp | ||||||||
6.450% due 11/15/11 | 5,000 | 5,241 | ||||||
Georgia Power Co | ||||||||
1.300% due 09/15/13 | 325,000 | 326,031 | ||||||
MidAmerican Energy Holdings Co | ||||||||
5.000% due 02/15/14 | 250,000 | 274,470 | ||||||
Progress Energy Inc | ||||||||
6.050% due 03/15/14 | 150,000 | 170,954 | ||||||
Southern Co | ||||||||
0.918% due 10/21/11 § | 125,000 | 125,468 | ||||||
1,515,737 | ||||||||
Total Corporate Bonds & Notes (Cost $34,955,465) | 35,728,325 | |||||||
MORTGAGE-BACKED SECURITIES — 12.3% | ||||||||
Collateralized Mortgage Obligations — Residential — 1.9% | ||||||||
Citimortgage Alternative Loan Trust | ||||||||
6.000% due 12/25/36 “ | 512,461 | 382,385 | ||||||
Fannie Mae | ||||||||
5.000% due 08/25/19 “ | 956,049 | 1,042,557 | ||||||
Structured Adjustable Rate Mortgage Loan Trust | ||||||||
2.698% due 11/25/34 “ § | 315,774 | 283,585 | ||||||
1,708,527 | ||||||||
Fannie Mae — 8.5% | ||||||||
2.640% due 09/01/34 “ § | 1,086,582 | 1,135,615 | ||||||
2.753% due 11/01/34 “ § | 872,459 | 907,697 | ||||||
3.500% due 12/01/10 “ | 4,000,000 | 4,096,248 | ||||||
5.000% due 01/01/20 “ | 8,540 | 9,114 | ||||||
6.000% due 10/01/21 “ | 1,449,051 | 1,571,251 | ||||||
7,719,925 | ||||||||
Freddie Mac — 0.7% | ||||||||
5.000% due 11/01/16 — 10/01/39 “ | 564,621 | 602,849 | ||||||
5.500% due 01/01/20 “ | 48,899 | 52,847 | ||||||
655,696 | ||||||||
Government National Mortgage Association — 1.2% | ||||||||
4.000% due 12/01/10 “ | 1,000,000 | 1,033,750 | ||||||
Total Mortgage-Backed Securities (Cost $11,121,671) | 11,117,898 | |||||||
ASSET-BACKED SECURITIES — 8.6% | ||||||||
Bank of America Auto Trust | ||||||||
1.670% due 12/16/13 “ ~ ∆ | 500,000 | 505,595 | ||||||
College Loan Corp Trust | ||||||||
0.598% due 07/25/24 “ § | 1,000,000 | 993,081 | ||||||
0.658% due 04/25/21 “ § | 1,000,000 | 995,783 | ||||||
Collegiate Funding Services Education Loan Trust I | ||||||||
0.379% due 12/28/21 “ § | 450,364 | 444,146 | ||||||
Ford Credit Auto Owner Trust | ||||||||
1.510% due 01/15/14 “ | 600,000 | 605,746 | ||||||
Nelnet Education Loan Funding Inc | ||||||||
0.418% due 11/25/15 “ § | 271,301 | 271,076 | ||||||
Northstar Education Finance Inc | ||||||||
0.608% due 04/28/16 “ § | 719,254 | 688,060 | ||||||
0.658% due 04/28/17 “ § | 420,000 | 417,295 | ||||||
SLM Student Loan Trust | ||||||||
0.498% due 07/25/17 “ § | 461,522 | 459,408 | ||||||
0.528% due 07/25/18 “ § | 1,500,000 | 1,494,329 | ||||||
0.898% due 10/27/14 “ § | 191,491 | 191,744 | ||||||
Suntrust Student Loan Trust | ||||||||
0.588% due 07/28/20 “ § ∆ | 685,954 | 683,691 | ||||||
Total Asset-Backed Securities (Cost $7,743,887) | 7,749,954 | |||||||
See Notes to Financial Statements | A-23 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL SHORT DURATION BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL SHORT DURATION BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
Principal | ||||||||
Amount | Value | |||||||
U.S. GOVERNMENT AGENCY ISSUES — 8.6% | ||||||||
Fannie Mae | ||||||||
2.050% due 04/26/13 | $ | 1,500,000 | $ | 1,511,681 | ||||
3.125% due 01/21/15 | 1,500,000 | 1,510,979 | ||||||
Federal Home Loan Bank | ||||||||
0.497% due 10/13/11 § | 3,000,000 | 3,001,254 | ||||||
3.125% due 06/10/11 ‡ | 700,000 | 712,383 | ||||||
Freddie Mac | ||||||||
4.500% due 01/15/13 | 1,000,000 | 1,088,156 | ||||||
Total U.S. Government Agency Issues (Cost $7,796,110) | 7,824,453 | |||||||
U.S. TREASURY OBLIGATIONS — 29.7% | ||||||||
U.S. Treasury Inflation Protected Securities — 1.9% | ||||||||
2.375% due 04/15/11 ^ | 329,508 | 333,756 | ||||||
3.000% due 07/15/12 ^ | 1,333,761 | 1,417,433 | ||||||
1,751,189 | ||||||||
U.S. Treasury Bonds — 0.3% | ||||||||
3.875% due 08/15/40 | 100,000 | 103,375 | ||||||
4.375% due 11/15/39 | 100,000 | 112,172 | ||||||
215,547 | ||||||||
U.S. Treasury Notes — 27.5% | ||||||||
0.625% due 06/30/12 | 1,600,000 | 1,606,747 | ||||||
0.625% due 07/31/12 | 900,000 | 903,903 | ||||||
0.750% due 05/31/12 | 4,600,000 | 4,628,732 | ||||||
0.875% due 01/31/12 | 1,300,000 | 1,309,598 | ||||||
1.000% due 03/31/12 | 3,500,000 | 3,534,986 | ||||||
1.000% due 04/30/12 | 9,300,000 | 9,395,567 | ||||||
1.250% due 09/30/15 | 400,000 | 399,562 | ||||||
1.375% due 03/15/13 | 900,000 | 918,708 | ||||||
1.500% due 12/31/13 | 2,200,000 | 2,255,517 | ||||||
24,953,320 | ||||||||
Total U.S. Treasury Obligations (Cost $26,668,561) | 26,920,056 | |||||||
Shares | ||||||||
SHORT-TERM INVESTMENTS — 6.2% | ||||||||
Money Market Fund — 0.6% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 552,951 | 552,951 | ||||||
Principal | ||||||||
Amount | ||||||||
Repurchase Agreement — 5.6% | ||||||||
Bank of America Corp | ||||||||
0.300% due 10/01/10 (Dated 09/30/10, repurchase price of $5,100,043, collateralized by U.S. Government Agency instruments 0.000% -1.750% due 11/15/10 — 03/08/13 and value $5,202,750) | $ | 5,100,000 | 5,100,000 | |||||
Total Short-Term Investments (Cost $5,652,951) | 5,652,951 | |||||||
TOTAL INVESTMENTS — 104.8% (Cost $93,938,645) | 94,993,637 | |||||||
OTHER ASSETS & LIABILITIES, NET — (4.8%) | (4,346,373 | ) | ||||||
NET ASSETS — 100.0% | $ | 90,647,264 | ||||||
Notes to Schedule of Investments
(a) | As of September 30, 2010, the Fund was diversified as a percentage of net assets as follows: |
Corporate Bonds & Notes | 39.4 | % | ||
U.S. Treasury Obligations | 29.7 | % | ||
Mortgage-Backed Securities | 12.3 | % | ||
U.S. Government Agency Issues | 8.6 | % | ||
Asset-Backed Securities | 8.6 | % | ||
Short-Term Investments | 6.2 | % | ||
104.8 | % | |||
Other Assets & Liabilities, Net | (4.8 | %) | ||
100.0 | % | |||
(b) | As of September 30, 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 | 71.2 | % | ||
A-1 | 5.4 | % | ||
AA | 3.4 | % | ||
A | 9.5 | % | ||
BBB | 8.5 | % | ||
Not Rated | 2.0 | % | ||
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. |
See Notes to Financial Statements | A-24 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL SHORT DURATION BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL SHORT DURATION BOND FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
(d) | Open futures Contracts outstanding as of September 30, 2010 were as follows: |
Unrealized | ||||||||||||
Number of | Notional | Appreciation | ||||||||||
Long Futures Outstanding | Contracts | Amount | (Depreciation) | |||||||||
Eurodollar (12/10) | 4 | $ | 4,000,000 | $ | 5,090 | |||||||
U.S. Treasury 2-Year Notes (12/10) | 106 | 21,200,000 | 42,179 | |||||||||
U.S. Treasury 5-Year Notes (12/10) | 3 | 300,000 | 2,946 | |||||||||
Short Futures Outstanding | ||||||||||||
Eurodollar (03/11) | 3 | 3,000,000 | (6,045 | ) | ||||||||
Eurodollar (06/11) | 3 | 3,000,000 | (8,295 | ) | ||||||||
Eurodollar (09/11) | 4 | 4,000,000 | (13,760 | ) | ||||||||
Eurodollar (12/11) | 4 | 4,000,000 | (16,060 | ) | ||||||||
U.S. Treasury 10-Year Notes (12/10) | 4 | 400,000 | 493 | |||||||||
U.S. Treasury 10-Year Notes (12/10) | 4 | 400,000 | (2,301 | ) | ||||||||
U.S. Treasury 30-Year Bonds (12/10) | 4 | 400,000 | 83 | |||||||||
U.S. Treasury 30-Year Bonds (12/10) | 2 | 200,000 | (253 | ) | ||||||||
U.S. Treasury Ultra Long Bonds (12/10) | 1 | 100,000 | 1,319 | |||||||||
$ | 5,396 | |||||||||||
(e) | As of September 30, 2010, securities with a total aggregate value of $335,838 were fully or partially segregated with the broker(s)/ custodian as collateral for open futures contracts. | |
(f) | As of September 30, 2010, 2.4% of the Fund’s net assets were reported illiquid by the portfolio manager under the Trust’s policy. | |
(g) | 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 11 in Notes to Financial Statements) as of September 30, 2010: |
Level 2 | Level 3 | |||||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||||
September 30, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||||
Assets | Corporate Bonds & Notes | $ | 35,728,325 | $ | — | $ | 35,728,325 | $ | — | |||||||||||
Mortgage-Backed Securities | 11,117,898 | — | 11,117,898 | — | ||||||||||||||||
Asset-Backed Securities | 7,749,954 | — | 7,749,954 | — | ||||||||||||||||
U.S. Government Agency Issues | 7,824,453 | — | 7,824,453 | — | ||||||||||||||||
U.S. Treasury Obligations | 26,920,056 | — | 26,920,056 | — | ||||||||||||||||
Short-Term Investments | 5,652,951 | 552,951 | 5,100,000 | — | ||||||||||||||||
Derivatives (1) | ||||||||||||||||||||
Interest Rate Contracts | 52,110 | 52,110 | — | — | ||||||||||||||||
95,045,747 | 605,061 | 94,440,686 | — | |||||||||||||||||
Liabilities | Derivatives (1) | |||||||||||||||||||
Interest Rate Contracts | (46,714 | ) | (46,714 | ) | — | — | ||||||||||||||
Total | $ | 94,999,033 | $ | 558,347 | $ | 94,440,686 | $ | — | ||||||||||||
(1) | Investments in derivatives include open futures contracts. |
See Notes to Financial Statements | A-25 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL COMSTOCK FUND
Schedule of Investments
September 30, 2010 (Unaudited)
PL COMSTOCK FUND
Schedule of Investments
September 30, 2010 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS — 94.0% | ||||||||
Consumer Discretionary — 15.1% | ||||||||
Comcast Corp ‘A’ | 349,709 | $ | 6,322,739 | |||||
DIRECTV ‘A’ * | 25,445 | 1,059,275 | ||||||
J.C. Penney Co Inc | 25,930 | 704,777 | ||||||
Lowe’s Cos Inc | 61,271 | 1,365,731 | ||||||
Macy’s Inc | 18,887 | 436,101 | ||||||
News Corp ‘B’ | 122,852 | 1,850,151 | ||||||
Target Corp | 8,626 | 460,973 | ||||||
The Home Depot Inc | 41,363 | 1,310,380 | ||||||
Time Warner Cable Inc | 38,950 | 2,102,911 | ||||||
Time Warner Inc | 48,672 | 1,491,797 | ||||||
Viacom Inc ‘B’ | 108,313 | 3,919,848 | ||||||
21,024,683 | ||||||||
Consumer Staples — 9.9% | ||||||||
Avon Products Inc | 25,988 | 834,475 | ||||||
CVS Caremark Corp | 65,396 | 2,058,012 | ||||||
Kraft Foods Inc ‘A’ | 107,428 | 3,315,228 | ||||||
PepsiCo Inc | 6,846 | 454,848 | ||||||
Philip Morris International Inc | 17,234 | 965,449 | ||||||
The Coca-Cola Co | 20,286 | 1,187,137 | ||||||
The Procter & Gamble Co | 7,197 | 431,604 | ||||||
Unilever NV ‘NY’ (Netherlands) | 70,562 | 2,108,393 | ||||||
Wal-Mart Stores Inc | 45,048 | 2,410,969 | ||||||
13,766,115 | ||||||||
Energy — 9.4% | ||||||||
BP PLC ADR (United Kingdom) | 18,548 | 763,621 | ||||||
Chevron Corp | 35,991 | 2,917,071 | ||||||
ConocoPhillips | 39,302 | 2,257,114 | ||||||
Halliburton Co | 75,182 | 2,486,269 | ||||||
Noble Corp (Switzerland) | 15,080 | 509,553 | ||||||
Royal Dutch Shell PLC ADR ‘A’ (United Kingdom) | 35,741 | 2,155,182 | ||||||
Total SA ADR (France) | 19,784 | 1,020,854 | ||||||
Weatherford International Ltd (Switzerland) * | 58,740 | 1,004,454 | ||||||
13,114,118 | ||||||||
Financials — 21.0% | ||||||||
Aflac Inc | 15,346 | 793,542 | ||||||
Bank of America Corp | 211,304 | 2,770,196 | ||||||
Citigroup Inc * | 456,828 | 1,781,629 | ||||||
JPMorgan Chase & Co | 108,412 | 4,127,245 | ||||||
MetLife Inc | 51,777 | 1,990,826 | ||||||
Morgan Stanley | 21,094 | 520,600 | ||||||
State Street Corp | 13,802 | 519,783 | ||||||
The Bank of New York Mellon Corp | 104,260 | 2,724,314 | ||||||
The Chubb Corp | 88,963 | 5,070,001 | ||||||
The Goldman Sachs Group Inc | 9,073 | 1,311,774 | ||||||
The PNC Financial Services Group Inc | 34,114 | 1,770,858 | ||||||
The Travelers Cos Inc | 55,668 | 2,900,303 | ||||||
Torchmark Corp | 19,320 | 1,026,665 | ||||||
U.S. Bancorp | 44,491 | 961,895 | ||||||
Wells Fargo & Co | 43,857 | 1,102,126 | ||||||
29,371,757 | ||||||||
Health Care — 12.7% | ||||||||
Abbott Laboratories | 24,143 | 1,261,230 | ||||||
Bristol-Myers Squibb Co | 112,448 | 3,048,465 | ||||||
Cardinal Health Inc | 52,035 | 1,719,236 | ||||||
GlaxoSmithKline PLC ADR (United Kingdom) | 22,834 | 902,400 | ||||||
Merck & Co Inc | 59,630 | 2,194,980 | ||||||
Pfizer Inc | 242,502 | 4,163,759 | ||||||
Roche Holding AG ADR (Switzerland) | 27,821 | 949,531 | ||||||
UnitedHealth Group Inc | 68,728 | 2,413,040 | ||||||
WellPoint Inc * | 18,658 | 1,056,789 | ||||||
17,709,430 | ||||||||
Industrials — 6.2% | ||||||||
Emerson Electric Co | 19,100 | 1,005,806 | ||||||
General Electric Co | 121,880 | 1,980,550 | ||||||
Honeywell International Inc | 36,722 | 1,613,565 | ||||||
Ingersoll-Rand PLC (Ireland) | 43,206 | 1,542,886 | ||||||
Textron Inc | 39,539 | 812,922 | ||||||
Tyco International Ltd (Switzerland) | 45,500 | 1,671,215 | ||||||
8,626,944 | ||||||||
Information Technology — 10.3% | ||||||||
Accenture PLC ‘A’ (Ireland) | 19,321 | 820,949 | ||||||
Cisco Systems Inc * | 53,900 | 1,180,410 | ||||||
Dell Inc * | 113,144 | 1,466,346 | ||||||
eBay Inc * | 167,376 | 4,083,974 | ||||||
Hewlett-Packard Co | 35,867 | 1,508,925 | ||||||
Intel Corp | 84,414 | 1,623,281 | ||||||
KLA-Tencor Corp | 20,786 | 732,291 | ||||||
Microsoft Corp | 13,400 | 328,166 | ||||||
The Western Union Co | 22,939 | 405,332 | ||||||
Yahoo! Inc * | 154,099 | 2,183,583 | ||||||
14,333,257 | ||||||||
Materials — 4.4% | ||||||||
Alcoa Inc | 152,714 | 1,849,367 | ||||||
E.I. du Pont de Nemours & Co | 17,632 | 786,740 | ||||||
International Paper Co | 162,467 | 3,533,657 | ||||||
6,169,764 | ||||||||
Telecommunication Services — 3.4% | ||||||||
AT&T Inc | 53,107 | 1,518,860 | ||||||
Verizon Communications Inc | 60,179 | 1,961,234 | ||||||
Vodafone Group PLC ADR (United Kingdom) | 53,986 | 1,339,393 | ||||||
4,819,487 | ||||||||
Utilities — 1.6% | ||||||||
American Electric Power Co Inc | 18,327 | 663,987 | ||||||
FirstEnergy Corp | 27,980 | 1,078,349 | ||||||
Sempra Energy | 9,054 | 487,105 | ||||||
2,229,441 | ||||||||
Total Common Stocks (Cost $118,101,247) | 131,164,996 | |||||||
SHORT-TERM INVESTMENT — 5.9% | ||||||||
Money Market Fund — 5.9% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 8,185,757 | 8,185,757 | ||||||
Total Short-Term Investment (Cost $8,185,757) | 8,185,757 | |||||||
TOTAL INVESTMENTS — 99.9% (Cost $126,287,004) | 139,350,753 | |||||||
OTHER ASSETS & LIABILITIES, NET — 0.1% | 192,821 | |||||||
NET ASSETS — 100.0% | $ | 139,543,574 | ||||||
See Notes to Financial Statements | A-26 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL COMSTOCK FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL COMSTOCK FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
Notes to Schedule of Investments
(a) | As of September 30, 2010, the Fund was diversified as a percentage of net assets as follows: |
Financials | 21.0 | % | ||
Consumer Discretionary | 15.1 | % | ||
Health Care | 12.7 | % | ||
Information Technology | 10.3 | % | ||
Consumer Staples | 9.9 | % | ||
Energy | 9.4 | % | ||
Industrials | 6.2 | % | ||
Short-Term Investment | 5.9 | % | ||
Materials | 4.4 | % | ||
Telecommunication Services | 3.4 | % | ||
Utilities | 1.6 | % | ||
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 11 in Notes to Financial Statements) as of September 30, 2010: |
Level 2 | Level 3 | |||||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||||
September 30, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||||
Assets | Common Stocks (1) | $ | 131,164,996 | $ | 131,164,996 | $ | — | $ | — | |||||||||||
Short-Term Investment | 8,185,757 | 8,185,757 | — | — | ||||||||||||||||
Total | $ | 139,350,753 | $ | 139,350,753 | $ | — | $ | — | ||||||||||||
(1) | For equity securities categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | A-27 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL GROWTH LT FUND
Schedule of Investments
September 30, 2010 (Unaudited)
PL GROWTH LT FUND
Schedule of Investments
September 30, 2010 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS — 94.5% | ||||||||
Consumer Discretionary — 6.2% | ||||||||
CBS Corp ‘B’ | 70,690 | $ | 1,121,143 | |||||
Crown Ltd (Australia) | 94,990 | 770,857 | ||||||
Kohl’s Corp * | 10,135 | 533,912 | ||||||
Lamar Advertising Co ‘A’ * | 10,050 | 319,791 | ||||||
Limited Brands Inc | 30,960 | 829,109 | ||||||
McDonald’s Corp | 14,996 | 1,117,352 | ||||||
The Home Depot Inc | 20,385 | 645,797 | ||||||
The Walt Disney Co | 23,860 | 790,005 | ||||||
6,127,966 | ||||||||
Consumer Staples — 12.0% | ||||||||
Anheuser-Busch InBev NV (Belgium) | 86,678 | 5,102,679 | ||||||
Anheuser-Busch InBev NV Strip VVPR (Belgium) * | 110,992 | 454 | ||||||
Coca-Cola Enterprises Inc | 28,045 | 869,395 | ||||||
Colgate-Palmolive Co | 15,150 | 1,164,429 | ||||||
Diageo PLC (United Kingdom) | 66,767 | 1,149,092 | ||||||
General Mills Inc | 10,670 | 389,882 | ||||||
Philip Morris International Inc | 26,850 | 1,504,137 | ||||||
Tesco PLC (United Kingdom) | 65,190 | 434,855 | ||||||
Walgreen Co | 37,880 | 1,268,980 | ||||||
11,883,903 | ||||||||
Energy — 7.7% | ||||||||
Apache Corp | 11,360 | 1,110,554 | ||||||
EOG Resources Inc | 24,745 | 2,300,543 | ||||||
Halliburton Co | 12,160 | 402,131 | ||||||
Occidental Petroleum Corp | 48,560 | 3,802,248 | ||||||
7,615,476 | ||||||||
Financials — 6.4% | ||||||||
Aflac Inc | 12,820 | 662,922 | ||||||
CME Group Inc ‘A’ | 1,740 | 453,183 | ||||||
ICICI Bank Ltd ADR (India) | 16,565 | 825,765 | ||||||
JPMorgan Chase & Co | 31,483 | 1,198,558 | ||||||
Morgan Stanley | 11,375 | 280,735 | ||||||
Prudential PLC (United Kingdom) | 45,986 | 459,530 | ||||||
T. Rowe Price Group Inc | 24,000 | 1,201,560 | ||||||
The Goldman Sachs Group Inc | 8,815 | 1,274,473 | ||||||
6,356,726 | ||||||||
Health Care — 12.1% | ||||||||
Abbott Laboratories | 18,345 | 958,343 | ||||||
Bristol-Myers Squibb Co | 76,040 | 2,061,444 | ||||||
Celgene Corp * | 56,510 | 3,255,541 | ||||||
Covidien PLC (Ireland) | 46,345 | 1,862,606 | ||||||
Genzyme Corp * | 12,605 | 892,308 | ||||||
Gilead Sciences Inc * | 30,970 | 1,102,842 | ||||||
Medco Health Solutions Inc * | 12,185 | 634,351 | ||||||
St. Jude Medical Inc * | 20,828 | 819,373 | ||||||
UnitedHealth Group Inc | 11,245 | 394,812 | ||||||
11,981,620 | ||||||||
Industrials — 11.8% | ||||||||
C.H. Robinson Worldwide Inc | 15,385 | 1,075,719 | ||||||
Canadian National Railway Co (Canada) | 20,226 | 1,294,869 | ||||||
Danaher Corp | 39,360 | 1,598,410 | ||||||
Emerson Electric Co | 22,315 | 1,175,108 | ||||||
Expeditors International of Washington Inc | 18,820 | 870,049 | ||||||
FedEx Corp | 5,390 | 460,845 | ||||||
Illinois Tool Works Inc | 11,860 | 557,657 | ||||||
Precision Castparts Corp | 9,285 | 1,182,445 | ||||||
Raytheon Co | 5,160 | 235,864 | ||||||
Tyco International Ltd (Switzerland) | 47,865 | 1,758,081 | ||||||
United Parcel Service Inc ‘B’ | 8,430 | 562,197 | ||||||
United Technologies Corp | 6,770 | 482,227 | ||||||
Verisk Analytics Inc ‘A’ * | 15,225 | 426,452 | ||||||
11,679,923 | ||||||||
Information Technology — 28.8% | ||||||||
Amphenol Corp ‘A’ | 21,318 | 1,044,156 | ||||||
Apple Inc * | 18,016 | 5,112,040 | ||||||
Cisco Systems Inc * | 157,970 | 3,459,543 | ||||||
eBay Inc * | 136,195 | 3,323,158 | ||||||
Global Payments Inc | 8,000 | 343,120 | ||||||
Google Inc ‘A’ * | 3,965 | 2,084,757 | ||||||
International Business Machines Corp | 30,570 | 4,100,660 | ||||||
Marvell Technology Group Ltd (Bermuda) * | 74,705 | 1,308,085 | ||||||
Microsoft Corp | 21,065 | 515,882 | ||||||
Motorola Inc * | 50,960 | 434,689 | ||||||
Oracle Corp | 116,725 | 3,134,066 | ||||||
Taiwan Semiconductor Manufacturing Co Ltd (Taiwan) | 327,453 | 648,030 | ||||||
Texas Instruments Inc | 31,674 | 859,632 | ||||||
The Western Union Co | 22,830 | 403,406 | ||||||
Tyco Electronics Ltd (Switzerland) | 15,035 | 439,323 | ||||||
Yahoo! Inc * | 92,890 | 1,316,251 | ||||||
28,526,798 | ||||||||
Materials — 4.8% | ||||||||
Newmont Mining Corp | 27,625 | 1,735,126 | ||||||
Nucor Corp | 25,080 | 958,056 | ||||||
Praxair Inc | 14,390 | 1,298,841 | ||||||
The Mosaic Co | 12,503 | 734,676 | ||||||
4,726,699 | ||||||||
Telecommunication Services — 4.7% | ||||||||
Crown Castle International Corp * | 104,150 | 4,598,222 | ||||||
Total Common Stocks (Cost $75,969,182) | 93,497,333 | |||||||
Principal | ||||||||
Amount | ||||||||
SHORT-TERM INVESTMENTS — 5.2% | ||||||||
U.S. Government Agency Issues — 4.7% | ||||||||
Federal Home Loan Bank | ||||||||
0.010% due 10/01/10 | $ | 4,700,000 | 4,700,000 | |||||
Shares | ||||||||
Money Market Fund — 0.5% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 482,600 | 482,600 | ||||||
Total Short-Term Investments (Cost $5,182,600) | 5,182,600 | |||||||
TOTAL INVESTMENTS — 99.7% (Cost $81,151,782) | 98,679,933 | |||||||
OTHER ASSETS & LIABILITIES, NET — 0.3% | 254,388 | |||||||
NET ASSETS — 100.0% | $ | 98,934,321 | ||||||
See Notes to Financial Statements | A-28 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL GROWTH LT FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL GROWTH LT FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
Notes to Schedule of Investments
(a) | As of September 30, 2010, the Fund was diversified as a percentage of net assets as follows: |
Information Technology | 28.8 | % | ||
Health Care | 12.1 | % | ||
Consumer Staples | 12.0 | % | ||
Industrials | 11.8 | % | ||
Energy | 7.7 | % | ||
Financials | 6.4 | % | ||
Consumer Discretionary | 6.2 | % | ||
Short-Term Investments | 5.2 | % | ||
Materials | 4.8 | % | ||
Telecommunication Services | 4.7 | % | ||
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) | Forward foreign currency contracts outstanding as of September 30, 2010 were as follows: |
Principal | ||||||||||||||||||||
Contracts | Amount | Unrealized | ||||||||||||||||||
to Buy or | Covered by | Appreciation | ||||||||||||||||||
to Sell | Currency | Contracts | Expiration | Counterparty | (Depreciation) | |||||||||||||||
Buy | AUD | 25,000 | 10/10 | CSF | $ | 473 | ||||||||||||||
Sell | AUD | 25,000 | 10/10 | HSB | (1,987 | ) | ||||||||||||||
Buy | AUD | 75,000 | 11/10 | CSF | 1,429 | |||||||||||||||
Sell | AUD | 75,000 | 11/10 | CSF | (1,729 | ) | ||||||||||||||
Buy | EUR | 895,000 | 10/10 | CSF | 5,456 | |||||||||||||||
Sell | EUR | 1,315,000 | 10/10 | HSB | (68,833 | ) | ||||||||||||||
Sell | EUR | 750,000 | 11/10 | JPM | 359 | |||||||||||||||
Sell | EUR | 330,000 | 11/10 | CSF | (18,908 | ) | ||||||||||||||
Sell | GBP | 188,000 | 10/10 | HSB | 4,266 | |||||||||||||||
Sell | GBP | 408,000 | 11/10 | CSF | (5,739 | ) | ||||||||||||||
Sell | GBP | 268,000 | 11/10 | JPM | 2,708 | |||||||||||||||
$ | (82,505 | ) | ||||||||||||||||||
(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 11 in Notes to Financial Statements) as of September 30, 2010: |
Level 2 | Level 3 | |||||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||||
September 30, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||||
Assets | Common Stocks | |||||||||||||||||||
Consumer Discretionary | $ | 6,127,966 | $ | 5,357,109 | $ | 770,857 | $ | — | ||||||||||||
Consumer Staples | 11,883,903 | 5,197,277 | 6,686,626 | — | ||||||||||||||||
Energy | 7,615,476 | 7,615,476 | — | — | ||||||||||||||||
Financials | 6,356,726 | 5,897,196 | 459,530 | — | ||||||||||||||||
Health Care | 11,981,620 | 11,981,620 | — | — | ||||||||||||||||
Industrials | 11,679,923 | 11,679,923 | — | — | ||||||||||||||||
Information Technology | 28,526,798 | 27,878,768 | 648,030 | — | ||||||||||||||||
Materials | 4,726,699 | 4,726,699 | — | — | ||||||||||||||||
Telecommunication Services | 4,598,222 | 4,598,222 | — | — | ||||||||||||||||
93,497,333 | 84,932,290 | 8,565,043 | — | |||||||||||||||||
Short-Term Investments | 5,182,600 | 482,600 | 4,700,000 | — | ||||||||||||||||
Derivatives (1) | ||||||||||||||||||||
Foreign Exchange Contracts | 14,691 | — | 14,691 | — | ||||||||||||||||
98,694,624 | 85,414,890 | 13,279,734 | — | |||||||||||||||||
Liabilities | Derivatives (1) | |||||||||||||||||||
Foreign Exchange Contracts | (97,196 | ) | — | (97,196 | ) | — | ||||||||||||||
�� | ||||||||||||||||||||
Total | $ | 98,597,428 | $ | 85,414,890 | $ | 13,182,538 | $ | — | ||||||||||||
(1) | Investments in derivatives include forward foreign currency contracts. |
See Notes to Financial Statements | A-29 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL LARGE-CAP GROWTH FUND
Schedule of Investments
September 30, 2010 (Unaudited)
PL LARGE-CAP GROWTH FUND
Schedule of Investments
September 30, 2010 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS — 97.5% | ||||||||
Consumer Discretionary — 17.9% | ||||||||
Amazon.com Inc * | 28,300 | $ | 4,444,798 | |||||
Apollo Group Inc ‘A’ * | 8,900 | 457,015 | ||||||
Discovery Communications Inc ‘A’ * | 32,700 | 1,424,085 | ||||||
Focus Media Holding Ltd ADR (Cayman) * | 27,000 | 656,100 | ||||||
International Game Technology | 74,800 | 1,080,860 | ||||||
Las Vegas Sands Corp * | 28,500 | 993,225 | ||||||
McDonald’s Corp | 41,800 | 3,114,518 | ||||||
Nike Inc ‘B’ | 13,600 | 1,089,904 | ||||||
priceline.com Inc * | 6,300 | 2,194,542 | ||||||
15,455,047 | ||||||||
Consumer Staples — 4.7% | ||||||||
Colgate-Palmolive Co | 7,200 | 553,392 | ||||||
General Mills Inc | 39,500 | 1,443,330 | ||||||
Kellogg Co | 40,300 | 2,035,553 | ||||||
4,032,275 | ||||||||
Energy — 6.2% | ||||||||
Anadarko Petroleum Corp | 19,578 | 1,116,925 | ||||||
Apache Corp | 8,700 | 850,512 | ||||||
Concho Resources Inc * | 16,800 | 1,111,656 | ||||||
Occidental Petroleum Corp | 14,500 | 1,135,350 | ||||||
Schlumberger Ltd (Netherlands) | 11,900 | 733,159 | ||||||
Southwestern Energy Co * | 11,500 | 384,560 | ||||||
5,332,162 | ||||||||
Financials — 5.1% | ||||||||
BlackRock Inc | 5,100 | 868,275 | ||||||
CME Group Inc ‘A’ | 4,100 | 1,067,845 | ||||||
IntercontinentalExchange Inc * | 12,400 | 1,298,528 | ||||||
The Goldman Sachs Group Inc | 8,100 | 1,171,098 | ||||||
4,405,746 | ||||||||
Health Care — 9.6% | ||||||||
Allergan Inc | 46,300 | 3,080,339 | ||||||
Covidien PLC (Ireland) | 40,500 | 1,627,695 | ||||||
Express Scripts Inc * | 21,200 | 1,032,440 | ||||||
Life Technologies Corp * | 22,100 | 1,031,849 | ||||||
Medco Health Solutions Inc * | 28,700 | 1,494,122 | ||||||
8,266,445 | ||||||||
Industrials — 10.7% | ||||||||
C.H. Robinson Worldwide Inc | 13,200 | 922,944 | ||||||
Danaher Corp | 26,000 | 1,055,860 | ||||||
Illinois Tool Works Inc | 32,700 | 1,537,554 | ||||||
Parker-Hannifin Corp | 12,100 | 847,726 | ||||||
Roper Industries Inc | 16,100 | 1,049,398 | ||||||
Union Pacific Corp | 13,600 | 1,112,480 | ||||||
United Technologies Corp | 28,500 | 2,030,055 | ||||||
Verisk Analytics Inc ‘A’ * | 26,200 | 733,862 | ||||||
9,289,879 | ||||||||
Information Technology — 34.0% | ||||||||
Apple Inc * | 21,700 | 6,157,375 | ||||||
Baidu Inc ADR (Cayman) * | 10,700 | 1,098,034 | ||||||
Cisco Systems Inc * | 138,300 | 3,028,770 | ||||||
EMC Corp * | 120,300 | 2,443,293 | ||||||
Google Inc ‘A’ * | 7,000 | 3,680,530 | ||||||
Juniper Networks Inc * | 39,800 | 1,207,930 | ||||||
MasterCard Inc ‘A’ | 10,200 | 2,284,800 | ||||||
NetApp Inc * | 24,200 | 1,204,918 | ||||||
Oracle Corp | 64,000 | 1,718,400 | ||||||
QUALCOMM Inc | 59,800 | 2,698,176 | ||||||
Red Hat Inc * | 30,000 | 1,230,000 | ||||||
Teradata Corp * | 31,300 | 1,206,928 | ||||||
Visa Inc ‘A’ | 19,200 | 1,425,792 | ||||||
29,384,946 | ||||||||
Materials — 5.5% | ||||||||
Praxair Inc | 18,100 | 1,633,706 | ||||||
The Mosaic Co | 23,500 | 1,380,860 | ||||||
The Sherwin-Williams Co | 22,700 | 1,705,678 | ||||||
4,720,244 | ||||||||
Telecommunication Services — 3.8% | ||||||||
American Tower Corp ‘A’ * | 16,700 | 856,042 | ||||||
Crown Castle International Corp * | 55,900 | 2,467,985 | ||||||
3,324,027 | ||||||||
Total Common Stocks (Cost $71,116,061) | 84,210,771 | |||||||
EXCHANGE-TRADED FUND — 1.8% | ||||||||
iShares Russell 1000 Growth Index Fund | 31,100 | 1,597,607 | ||||||
Total Exchange-Traded Fund (Cost $1,515,658) | 1,597,607 | |||||||
SHORT-TERM INVESTMENT — 0.8% | ||||||||
Money Market Fund — 0.8% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 678,811 | 678,811 | ||||||
Total Short-Term Investment (Cost $678,811) | 678,811 | |||||||
TOTAL INVESTMENTS — 100.1% (Cost $73,310,530) | 86,487,189 | |||||||
OTHER ASSETS & LIABILITIES, NET — (0.1%) | (76,472 | ) | ||||||
NET ASSETS — 100.0% | $ | 86,410,717 | ||||||
See Notes to Financial Statements | A-30 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL LARGE-CAP GROWTH FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL LARGE-CAP GROWTH FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
Notes to Schedule of Investments
(a) | As of September 30, 2010, the Fund was diversified as a percentage of net assets as follows: |
Information Technology | 34.0 | % | ||
Consumer Discretionary | 17.9 | % | ||
Industrials | 10.7 | % | ||
Health Care | 9.6 | % | ||
Energy | 6.2 | % | ||
Materials | 5.5 | % | ||
Financials | 5.1 | % | ||
Consumer Staples | 4.7 | % | ||
Telecommunication Services | 3.8 | % | ||
Exchange-Traded Fund | 1.8 | % | ||
Short-Term Investment | 0.8 | % | ||
100.1 | % | |||
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 11 in Notes to Financial Statements) as of September 30, 2010: |
Level 2 | Level 3 | |||||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||||
September 30, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||||
Assets | Common Stocks (1) | $ | 84,210,771 | $ | 84,210,771 | $ | — | $ | — | |||||||||||
Exchange-Traded Fund | 1,597,607 | 1,597,607 | — | — | ||||||||||||||||
Short-Term Investment | 678,811 | 678,811 | — | — | ||||||||||||||||
Total | $ | 86,487,189 | $ | 86,487,189 | $ | — | $ | — | ||||||||||||
(1) | For equity securities categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | A-31 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL LARGE-CAP VALUE FUND
Schedule of Investments
September 30, 2010 (Unaudited)
PL LARGE-CAP VALUE FUND
Schedule of Investments
September 30, 2010 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS — 96.8% | ||||||||
Consumer Discretionary — 16.1% | ||||||||
DISH Network Corp ‘A’ | 181,583 | $ | 3,479,130 | |||||
McDonald’s Corp | 40,640 | 3,028,086 | ||||||
News Corp ‘A’ | 405,154 | 5,291,311 | ||||||
SES SA FDR (Luxembourg) | 159,543 | 3,840,652 | ||||||
Target Corp | 38,470 | 2,055,837 | ||||||
The Home Depot Inc | 78,920 | 2,500,186 | ||||||
Time Warner Cable Inc | 90,771 | 4,900,726 | ||||||
Time Warner Inc | 182,219 | 5,585,012 | ||||||
30,680,940 | ||||||||
Consumer Staples — 13.1% | ||||||||
Altria Group Inc | 81,780 | 1,964,356 | ||||||
CVS Caremark Corp | 68,573 | 2,157,992 | ||||||
Kimberly-Clark Corp | 87,255 | 5,675,938 | ||||||
Lorillard Inc | 25,790 | 2,071,195 | ||||||
Philip Morris International Inc | 109,189 | 6,116,768 | ||||||
The Procter & Gamble Co | 29,499 | 1,769,055 | ||||||
Unilever PLC ADR (United Kingdom) | 74,300 | 2,162,130 | ||||||
Wal-Mart Stores Inc | 55,280 | 2,958,586 | ||||||
24,876,020 | ||||||||
Energy — 13.5% | ||||||||
Apache Corp | 19,280 | 1,884,813 | ||||||
El Paso Corp | 401,281 | 4,967,859 | ||||||
Exxon Mobil Corp | 66,411 | 4,103,536 | ||||||
Halliburton Co | 75,807 | 2,506,937 | ||||||
Royal Dutch Shell PLC ADR ‘A’ (United Kingdom) | 41,722 | 2,515,837 | ||||||
Suncor Energy Inc (Canada) | 84,805 | 2,760,403 | ||||||
Total SA ADR (France) | 83,299 | 4,298,228 | ||||||
Transocean Ltd (Switzerland) * | 39,590 | 2,545,241 | ||||||
25,582,854 | ||||||||
Financials — 21.4% | ||||||||
American Express Co | 79,800 | 3,353,994 | ||||||
Bank of America Corp | 383,997 | 5,034,201 | ||||||
JPMorgan Chase & Co | 159,275 | 6,063,599 | ||||||
Loews Corp | 75,620 | 2,865,998 | ||||||
Marsh & McLennan Cos Inc | 116,935 | 2,820,472 | ||||||
Morgan Stanley | 102,529 | 2,530,416 | ||||||
State Street Corp | 46,146 | 1,737,858 | ||||||
The Bank of New York Mellon Corp | 59,041 | 1,542,741 | ||||||
The Charles Schwab Corp | 136,210 | 1,893,319 | ||||||
The Chubb Corp | 34,066 | 1,941,421 | ||||||
The Progressive Corp | 102,850 | 2,146,480 | ||||||
The Travelers Cos Inc | 53,283 | 2,776,044 | ||||||
Wells Fargo & Co | 233,689 | 5,872,605 | ||||||
40,579,148 | ||||||||
Health Care — 9.0% | ||||||||
Abbott Laboratories | 47,540 | 2,483,490 | ||||||
Johnson & Johnson | 58,492 | 3,624,164 | ||||||
Merck & Co Inc | 63,080 | 2,321,975 | ||||||
Novartis AG ADR (Switzerland) | 59,650 | 3,440,016 | ||||||
Pfizer Inc | 115,090 | 1,976,095 | ||||||
Roche Holding AG (Switzerland) | 9,750 | 1,332,163 | ||||||
WellPoint Inc * | 35,317 | 2,000,355 | ||||||
17,178,258 | ||||||||
Industrials — 8.0% | ||||||||
General Electric Co | 252,030 | 4,095,487 | ||||||
Honeywell International Inc | 88,148 | 3,873,223 | ||||||
Raytheon Co | 67,079 | 3,066,181 | ||||||
United Technologies Corp | 58,167 | 4,143,235 | ||||||
15,178,126 | ||||||||
Information Technology — 5.4% | ||||||||
Hewlett-Packard Co | 69,794 | 2,936,234 | ||||||
International Business Machines Corp | 31,915 | 4,281,078 | ||||||
Microsoft Corp | 122,930 | 3,010,556 | ||||||
10,227,868 | ||||||||
Materials — 3.0% | ||||||||
Air Products & Chemicals Inc | 47,350 | 3,921,527 | ||||||
Crown Holdings Inc * | 65,249 | 1,870,036 | ||||||
5,791,563 | ||||||||
Telecommunication Services — 5.2% | ||||||||
AT&T Inc | 99,340 | 2,841,124 | ||||||
CenturyLink Inc | 102,550 | 4,046,623 | ||||||
Verizon Communications Inc | 93,930 | 3,061,179 | ||||||
9,948,926 | ||||||||
Utilities — 2.1% | ||||||||
Sempra Energy | 73,718 | 3,966,028 | ||||||
Total Common Stocks (Cost $170,175,972) | 184,009,731 | |||||||
SHORT-TERM INVESTMENT — 4.4% | ||||||||
Money Market Fund — 4.4% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 8,315,642 | 8,315,642 | ||||||
Total Short-Term Investment (Cost $8,315,642) | 8,315,642 | |||||||
TOTAL INVESTMENTS — 101.2% (Cost $178,491,614) | 192,325,373 | |||||||
OTHER ASSETS & LIABILITIES, NET — (1.2%) | (2,253,088 | ) | ||||||
NET ASSETS — 100.0% | $ | 190,072,285 | ||||||
Notes to Schedule of Investments
(a) | As of September 30, 2010, the Fund was diversified as a percentage of net assets as follows: |
Financials | 21.4 | % | ||
Consumer Discretionary | 16.1 | % | ||
Energy | 13.5 | % | ||
Consumer Staples | 13.1 | % | ||
Health Care | 9.0 | % | ||
Industrials | 8.0 | % | ||
Information Technology | 5.4 | % | ||
Telecommunication Services | 5.2 | % | ||
Short-Term Investment | 4.4 | % | ||
Materials | 3.0 | % | ||
Utilities | 2.1 | % | ||
101.2 | % | |||
Other Assets & Liabilities, Net | (1.2 | %) | ||
100.0 | % | |||
See Notes to Financial Statements | A-32 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL LARGE-CAP VALUE FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL LARGE-CAP VALUE FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
(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 11 in Notes to Financial Statements) as of September 30, 2010: |
Level 2 | Level 3 | |||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||
September 30, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||
Assets | Common Stocks | |||||||||||||||||
Consumer Discretionary | $ | 30,680,940 | $ | 26,840,288 | $ | 3,840,652 | $ | — | ||||||||||
Consumer Staples | 24,876,020 | 24,876,020 | — | — | ||||||||||||||
Energy | 25,582,854 | 25,582,854 | — | — | ||||||||||||||
Financials | 40,579,148 | 40,579,148 | — | — | ||||||||||||||
Health Care | 17,178,258 | 15,846,095 | 1,332,163 | — | ||||||||||||||
Industrials | 15,178,126 | 15,178,126 | — | — | ||||||||||||||
Information Technology | 10,227,868 | 10,227,868 | — | — | ||||||||||||||
Materials | 5,791,563 | 5,791,563 | — | — | ||||||||||||||
Telecommunication Services | 9,948,926 | 9,948,926 | — | — | ||||||||||||||
Utilities | 3,966,028 | 3,966,028 | — | — | ||||||||||||||
184,009,731 | 178,836,916 | 5,172,815 | — | |||||||||||||||
Short-Term Investment | 8,315,642 | 8,315,642 | — | — | ||||||||||||||
Total | $ | 192,325,373 | $ | 187,152,558 | $ | 5,172,815 | $ | — | ||||||||||
See Notes to Financial Statements | A-33 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL MAIN STREET® CORE FUND
Schedule of Investments
September 30, 2010 (Unaudited)
PL MAIN STREET® CORE FUND
Schedule of Investments
September 30, 2010 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS — 97.5% | ||||||||
Consumer Discretionary — 12.8% | ||||||||
AutoZone Inc * | 7,540 | $ | 1,725,981 | |||||
Ford Motor Co * | 344,252 | 4,213,644 | ||||||
Hyatt Hotels Corp ‘A’ * | 50,708 | 1,895,972 | ||||||
McDonald’s Corp | 49,002 | 3,651,139 | ||||||
Target Corp | 12,400 | 662,656 | ||||||
The McGraw-Hill Cos Inc | 85,398 | 2,823,258 | ||||||
The Washington Post Co ‘B’ | 2,292 | 915,448 | ||||||
Time Warner Cable Inc | 22,494 | 1,214,451 | ||||||
17,102,549 | ||||||||
Consumer Staples — 9.3% | ||||||||
General Mills Inc | 74,260 | 2,713,460 | ||||||
Mead Johnson Nutrition Co | 37,620 | 2,140,954 | ||||||
Philip Morris International Inc | 123,640 | 6,926,313 | ||||||
Sara Lee Corp | 43,790 | 588,100 | ||||||
12,368,827 | ||||||||
Energy — 10.4% | ||||||||
Chevron Corp | 61,344 | 4,971,931 | ||||||
Enterprise Products Partners LP | 44,206 | 1,753,652 | ||||||
Noble Energy Inc | 19,658 | 1,476,119 | ||||||
Occidental Petroleum Corp | 57,308 | 4,487,216 | ||||||
Plains All American Pipeline LP | 19,222 | 1,209,256 | ||||||
13,898,174 | ||||||||
Financials — 16.7% | ||||||||
Aflac Inc | 38,708 | 2,001,591 | ||||||
Bank of America Corp | 204,370 | 2,679,291 | ||||||
CIT Group Inc * | 117,900 | 4,812,678 | ||||||
Citigroup Inc * | 752,824 | 2,936,014 | ||||||
Lincoln National Corp | 17,300 | 413,816 | ||||||
Marshall & Ilsley Corp | 49,100 | 345,664 | ||||||
State Street Corp | 63,412 | 2,388,096 | ||||||
The Goldman Sachs Group Inc | 10,982 | 1,587,778 | ||||||
The Progressive Corp | 71,188 | 1,485,694 | ||||||
Wells Fargo & Co | 144,640 | 3,634,803 | ||||||
22,285,425 | ||||||||
Health Care — 12.1% | ||||||||
Abbott Laboratories | 53,270 | 2,782,825 | ||||||
Celgene Corp * | 34,032 | 1,960,584 | ||||||
Express Scripts Inc * | 28,786 | 1,401,878 | ||||||
Human Genome Sciences Inc * | 33,612 | 1,001,301 | ||||||
Medtronic Inc | 43,030 | 1,444,947 | ||||||
Merck & Co Inc | 86,360 | 3,178,912 | ||||||
Perrigo Co | 6,226 | 399,834 | ||||||
Teva Pharmaceutical Industries Ltd ADR (Israel) | 28,938 | 1,526,479 | ||||||
WellPoint Inc * | 44,160 | 2,501,222 | ||||||
16,197,982 | ||||||||
Industrials — 10.9% | ||||||||
General Electric Co | 84,090 | 1,366,462 | ||||||
KBR Inc | 47,490 | 1,170,154 | ||||||
Precision Castparts Corp | 17,044 | 2,170,553 | ||||||
Republic Services Inc | 87,440 | 2,666,046 | ||||||
The Boeing Co | 24,898 | 1,656,713 | ||||||
Tyco International Ltd (Switzerland) | 85,905 | 3,155,291 | ||||||
United Parcel Service Inc ‘B’ | 26,916 | 1,795,028 | ||||||
Verisk Analytics Inc ‘A’ * | 18,150 | 508,381 | ||||||
14,488,628 | ||||||||
Information Technology — 18.6% | ||||||||
Apple Inc * | 23,352 | 6,626,130 | ||||||
Check Point Software Technologies Ltd (Israel) * | 56,774 | 2,096,664 | ||||||
eBay Inc * | 174,880 | 4,267,072 | ||||||
Google Inc ‘A’ * | 6,296 | 3,310,374 | ||||||
Marvell Technology Group Ltd (Bermuda) * | 53,520 | 937,135 | ||||||
Microsoft Corp | 114,112 | 2,794,603 | ||||||
QUALCOMM Inc | 89,342 | 4,031,111 | ||||||
Western Digital Corp * | 24,530 | 696,407 | ||||||
24,759,496 | ||||||||
Materials — 1.6% | ||||||||
Praxair Inc | 23,982 | 2,164,615 | ||||||
Telecommunication Services — 2.1% | ||||||||
America Movil SAB de CV ‘L’ ADR (Mexico) | 51,290 | 2,735,296 | ||||||
Utilities — 3.0% | ||||||||
The AES Corp * | 355,678 | 4,036,945 | ||||||
Total Common Stocks (Cost $112,973,232) | 130,037,937 | |||||||
SHORT-TERM INVESTMENT — 2.0% | ||||||||
Money Market Fund — 2.0% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 2,632,535 | 2,632,535 | ||||||
Total Short-Term Investment (Cost $2,632,535) | 2,632,535 | |||||||
TOTAL INVESTMENTS — 99.5% (Cost $115,605,767) | 132,670,472 | |||||||
OTHER ASSETS & LIABILITIES, NET — 0.5% | 642,942 | |||||||
NET ASSETS — 100.0% | $ | 133,313,414 | ||||||
Notes to Schedule of Investments
(a) | As of September 30, 2010, the Fund was diversified as a percentage of net assets as follows: |
Information Technology | 18.6 | % | ||
Financials | 16.7 | % | ||
Consumer Discretionary | 12.8 | % | ||
Health Care | 12.1 | % | ||
Industrials | 10.9 | % | ||
Energy | 10.4 | % | ||
Consumer Staples | 9.3 | % | ||
Utilities | 3.0 | % | ||
Telecommunication Services | 2.1 | % | ||
Short-Term Investment | 2.0 | % | ||
Materials | 1.6 | % | ||
99.5 | % | |||
Other Assets & Liabilities, Net | 0.5 | % | ||
100.0 | % | |||
See Notes to Financial Statements | A-34 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL MAIN STREET CORE FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL MAIN STREET CORE FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
(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 11 in Notes to Financial Statements) as of September 30, 2010: |
Level 2 | Level 3 | |||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||
September 30, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||
Assets | Common Stocks (1) | $ | 130,037,937 | $ | 130,037,937 | $ | — | $ | — | |||||||||
Short-Term Investment | 2,632,535 | 2,632,535 | — | — | ||||||||||||||
Total | $ | 132,670,472 | $ | 132,670,472 | $ | — | $ | — | ||||||||||
(1) | For equity securities categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | A-35 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL MID-CAP EQUITY FUND
Schedule of Investments
September 30, 2010 (Unaudited)
PL MID-CAP EQUITY FUND
Schedule of Investments
September 30, 2010 (Unaudited)
Shares | Value | |||||||
CONVERTIBLE PREFERRED STOCKS — 0.5% | ||||||||
Industrials — 0.5% | ||||||||
Better Place LLC ‘B’ 8.000% * D + | 191,233 | $ | 573,700 | |||||
Total Convertible Preferred Stocks (Cost $573,700) | 573,700 | |||||||
COMMON STOCKS — 95.5% | ||||||||
Consumer Discretionary — 14.2% | ||||||||
AutoZone Inc * | 8,850 | 2,025,853 | ||||||
Big Lots Inc * | 17,200 | 571,900 | ||||||
Cablevision Systems Corp ‘A’ | 50,700 | 1,327,833 | ||||||
Darden Restaurants Inc | 31,600 | 1,351,848 | ||||||
J.Crew Group Inc * | 37,900 | 1,274,198 | ||||||
Lear Corp * | 10,400 | 820,872 | ||||||
Mattel Inc | 136,900 | 3,211,674 | ||||||
Newell Rubbermaid Inc | 180,800 | 3,220,048 | ||||||
Stanley Black & Decker Inc | 25,000 | 1,532,000 | ||||||
The TJX Cos Inc | 29,500 | 1,316,585 | ||||||
16,652,811 | ||||||||
Consumer Staples — 7.7% | ||||||||
Avon Products Inc | 56,500 | 1,814,215 | ||||||
Campbell Soup Co | 47,100 | 1,683,825 | ||||||
McCormick & Co Inc | 25,000 | 1,051,000 | ||||||
Molson Coors Brewing Co ‘B’ | 49,300 | 2,327,946 | ||||||
Ralcorp Holdings Inc * | 36,550 | 2,137,444 | ||||||
9,014,430 | ||||||||
Energy — 8.2% | ||||||||
Arch Coal Inc | 45,900 | 1,225,989 | ||||||
Holly Corp | 51,700 | 1,486,375 | ||||||
Massey Energy Co | 14,630 | 453,823 | ||||||
Murphy Oil Corp | 19,400 | 1,201,248 | ||||||
Noble Energy Inc | 15,500 | 1,163,895 | ||||||
Rowan Cos Inc * | 27,300 | 828,828 | ||||||
The Williams Cos Inc | 89,770 | 1,715,505 | ||||||
Tidewater Inc | 34,250 | 1,534,743 | ||||||
9,610,406 | ||||||||
Financials — 14.9% | ||||||||
Ameriprise Financial Inc | 81,260 | 3,846,036 | ||||||
City National Corp | 49,850 | 2,645,539 | ||||||
Digital Realty Trust Inc REIT | 22,200 | 1,369,740 | ||||||
Fifth Third Bancorp | 118,400 | 1,424,352 | ||||||
KeyCorp | 155,900 | 1,240,964 | ||||||
NYSE Euronext | 48,800 | 1,394,216 | ||||||
PartnerRe Ltd (Bermuda) | 18,950 | 1,519,411 | ||||||
Public Storage REIT | 10,050 | 975,252 | ||||||
The Macerich Co REIT | 41,100 | 1,765,245 | ||||||
UDR Inc REIT | 56,350 | 1,190,112 | ||||||
17,370,867 | ||||||||
Health Care — 7.7% | ||||||||
CareFusion Corp * | 86,050 | 2,137,482 | ||||||
Hospira Inc * | 33,300 | 1,898,433 | ||||||
Life Technologies Corp * | 19,437 | 907,513 | ||||||
Teleflex Inc | 22,600 | 1,283,228 | ||||||
Warner Chilcott PLC ‘A’ (Ireland) | 47,500 | 1,065,900 | ||||||
Zimmer Holdings Inc * | 33,300 | 1,742,589 | ||||||
9,035,145 | ||||||||
Industrials — 12.7% | ||||||||
Corrections Corp of America * | 68,350 | 1,686,878 | ||||||
Dover Corp | 75,290 | 3,930,891 | ||||||
Equifax Inc | 53,000 | 1,653,600 | ||||||
Foster Wheeler AG (Switzerland) * | 50,950 | 1,246,237 | ||||||
Joy Global Inc | 14,300 | 1,005,576 | ||||||
Parker-Hannifin Corp | 35,050 | 2,455,603 | ||||||
Rockwell Collins Inc | 49,600 | 2,889,200 | ||||||
14,867,985 | ||||||||
Information Technology — 14.7% | ||||||||
Analog Devices Inc | 77,250 | 2,424,105 | ||||||
BMC Software Inc * | 55,200 | 2,234,496 | ||||||
Ingram Micro Inc ‘A’ * | 128,740 | 2,170,556 | ||||||
Intuit Inc * | 22,150 | 970,391 | ||||||
Lexmark International Inc ‘A’ * | 18,000 | 803,160 | ||||||
NetApp Inc * | 25,000 | 1,244,750 | ||||||
NeuStar Inc ‘A’ * | 39,700 | 986,942 | ||||||
Seagate Technology PLC (Ireland) * | 79,900 | 941,222 | ||||||
SMART Technologies Inc ‘A’ (Canada) * | 27,976 | 379,075 | ||||||
Symantec Corp * | 104,900 | 1,591,333 | ||||||
Tellabs Inc | 116,400 | 867,180 | ||||||
Teradata Corp * | 22,600 | 871,456 | ||||||
Xilinx Inc | 65,500 | 1,742,955 | ||||||
17,227,621 | ||||||||
Materials — 9.7% | ||||||||
Air Products & Chemicals Inc | 12,200 | 1,010,404 | ||||||
Ball Corp | 71,010 | 4,178,938 | ||||||
Cliffs Natural Resources Inc | 23,350 | 1,492,532 | ||||||
Compass Minerals International Inc | 22,200 | 1,700,964 | ||||||
Eastman Chemical Co | 25,600 | 1,894,400 | ||||||
Packaging Corp of America | 48,250 | 1,117,953 | ||||||
11,395,191 | ||||||||
Utilities — 5.7% | ||||||||
Allegheny Energy Inc | 52,850 | 1,295,882 | ||||||
American Electric Power Co Inc | 74,800 | 2,710,004 | ||||||
Energen Corp | 36,150 | 1,652,778 | ||||||
EQT Corp | 26,400 | 951,984 | ||||||
6,610,648 | ||||||||
Total Common Stocks (Cost $95,519,053) | 111,785,104 | |||||||
SHORT-TERM INVESTMENT — 3.2% | ||||||||
Money Market Fund — 3.2% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 3,767,213 | 3,767,213 | ||||||
Total Short-Term Investment (Cost $3,767,213) | 3,767,213 | |||||||
TOTAL INVESTMENTS — 99.2% (Cost $99,859,966) | 116,126,017 | |||||||
OTHER ASSETS & LIABILITIES, NET — 0.8% | 891,371 | |||||||
NET ASSETS — 100.0% | $ | 117,017,388 | ||||||
See Notes to Financial Statements | A-36 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL MID-CAP EQUITY FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL MID-CAP EQUITY FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
Notes to Schedule of Investments
(a) | As of September 30, 2010, the Fund was diversified as a percentage of net assets as follows: |
Financials | 14.9 | % | ||
Information Technology | 14.7 | % | ||
Consumer Discretionary | 14.2 | % | ||
Industrials | 13.2 | % | ||
Materials | 9.7 | % | ||
Energy | 8.2 | % | ||
Health Care | 7.7 | % | ||
Consumer Staples | 7.7 | % | ||
Utilities | 5.7 | % | ||
Short-Term Investment | 3.2 | % | ||
99.2 | % | |||
Other Assets & Liabilities, Net | 0.8 | % | ||
100.0 | % | |||
(b) | As of September 30, 2010, 0.5% of the Fund’s net assets were reported illiquid by the portfolio manager under the Trust’s policy. | |
(c) | A security with a total aggregate value of $573,700 or 0.5% of the net assets was valued under the fair value procedures established by the Trust’s Board of Trustees. | |
(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 11 in Notes to Financial Statements) as of September 30, 2010: |
Level 2 | Level 3 | |||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||
September 30, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||
Assets | Convertible Preferred Stocks (1) | $ | 573,700 | $ | — | $ | — | $ | 573,700 | |||||||||
Common Stocks (1) | 111,785,104 | 111,785,104 | — | — | ||||||||||||||
Short-Term Investment | 3,767,213 | 3,767,213 | — | — | ||||||||||||||
Total | $ | 116,126,017 | $ | 115,552,317 | $ | — | $ | 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 11 in Notes to Financial Statements) for the six-month period ended September 30, 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 | Appreciation | or Out of | Value, | the End of Period, | ||||||||||||||||||||||
of Period | (Sales) | Gains (Losses) | (Depreciation) | Level 3 | End of Period | 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 | A-37 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL MID-CAP GROWTH FUND
Schedule of Investments
September 30, 2010 (Unaudited)
PL MID-CAP GROWTH FUND
Schedule of Investments
September 30, 2010 (Unaudited)
Shares | Value | |||||||
CONVERTIBLE PREFERRED STOCKS — 0.6% | ||||||||
Industrials — 0.6% | ||||||||
Better Place LLC ‘B’ 8.000% * D + | 98,662 | $ | 295,986 | |||||
Total Convertible Preferred Stocks (Cost $295,986) | 295,986 | |||||||
COMMON STOCKS — 97.2% | ||||||||
Consumer Discretionary — 28.1% | ||||||||
Chipotle Mexican Grill Inc * | 1,419 | 244,068 | ||||||
Ctrip.com International Ltd ADR (Cayman) * | 35,058 | 1,674,019 | ||||||
Discovery Communications Inc ‘C’ * | 14,270 | 544,971 | ||||||
Dollar Tree Inc * | 2,905 | 141,648 | ||||||
Gafisa SA ADR (Brazil) | 31,505 | 488,012 | ||||||
Groupe Aeroplan Inc (Canada) | 42,018 | 516,190 | ||||||
Las Vegas Sands Corp * | 48,165 | 1,678,550 | ||||||
Li & Fung Ltd (Bermuda) | 284,200 | 1,592,042 | ||||||
Morningstar Inc * | 14,844 | 661,449 | ||||||
Naspers Ltd ‘N’ (South Africa) | 16,758 | 817,753 | ||||||
Netflix Inc * | 7,992 | 1,295,983 | ||||||
New Oriental Education & Technology Group ADR (Cayman) * | 7,748 | 756,050 | ||||||
NVR Inc * | 802 | 519,319 | ||||||
priceline.com Inc * | 4,932 | 1,718,013 | ||||||
Sears Holdings Corp * | 4,182 | 301,689 | ||||||
Strayer Education Inc | 2,583 | 450,733 | ||||||
Wynn Resorts Ltd | 16,350 | 1,418,689 | ||||||
14,819,178 | ||||||||
Consumer Staples — 3.4% | ||||||||
Coca-Cola Enterprises Inc | 17,033 | 528,023 | ||||||
Mead Johnson Nutrition Co | 21,977 | 1,250,711 | ||||||
Natura Cosmeticos SA (Brazil) | 200 | 5,403 | ||||||
1,784,137 | ||||||||
Energy — 4.0% | ||||||||
Petrohawk Energy Corp * | 11,168 | 180,252 | ||||||
Range Resources Corp | 19,712 | 751,619 | ||||||
Ultra Petroleum Corp (Canada) * | 28,674 | 1,203,735 | ||||||
2,135,606 | ||||||||
Financials — 9.1% | ||||||||
Calamos Asset Management Inc ‘A’ | 21,362 | 245,663 | ||||||
CIT Group Inc * | 11,730 | 478,819 | ||||||
Greenhill & Co Inc | 10,332 | 819,534 | ||||||
IntercontinentalExchange Inc * | 5,440 | 569,677 | ||||||
Leucadia National Corp * | 32,549 | 768,807 | ||||||
Moody’s Corp | 8,833 | 220,648 | ||||||
MSCI Inc ‘A’ * | 34,727 | 1,153,284 | ||||||
T. Rowe Price Group Inc | 10,356 | 518,473 | ||||||
4,774,905 | ||||||||
Health Care — 8.4% | ||||||||
Gen-Probe Inc * | 16,666 | 807,634 | ||||||
IDEXX Laboratories Inc * | 10,950 | 675,834 | ||||||
Illumina Inc * | 28,297 | 1,392,212 | ||||||
Intuitive Surgical Inc * | 1,753 | 497,396 | ||||||
Ironwood Pharmaceuticals Inc ‘A’ * | 33,504 | 341,071 | ||||||
Techne Corp | 11,379 | 702,426 | ||||||
4,416,573 | ||||||||
Industrials — 18.5% | ||||||||
C.H. Robinson Worldwide Inc | 11,325 | 791,844 | ||||||
Covanta Holding Corp | 43,913 | 691,630 | ||||||
Edenred (France) * | 63,655 | 1,260,882 | ||||||
Expeditors International of Washington Inc | 23,494 | 1,086,128 | ||||||
Fastenal Co | 13,696 | 728,490 | ||||||
IHS Inc ‘A’ * | 9,532 | 648,176 | ||||||
Intertek Group PLC (United Kingdom) | 41,309 | 1,189,880 | ||||||
Schindler Holding AG (Switzerland) | 9,903 | 1,063,084 | ||||||
Stericycle Inc * | 11,089 | 770,464 | ||||||
The Corporate Executive Board Co | 12,106 | 382,065 | ||||||
Verisk Analytics Inc ‘A’ * | 39,369 | 1,102,726 | ||||||
9,715,369 | ||||||||
Information Technology — 19.2% | ||||||||
Akamai Technologies Inc * | 15,065 | 755,962 | ||||||
Alibaba.com Ltd (Cayman) * | 303,100 | 629,419 | ||||||
ARM Holdings PLC ADR (United Kingdom) | 26,919 | 505,000 | ||||||
Autodesk Inc * | 19,520 | 624,054 | ||||||
Citrix Systems Inc * | 5,097 | 347,819 | ||||||
FactSet Research Systems Inc | 1,031 | 83,645 | ||||||
Gartner Inc * | 24,761 | 728,964 | ||||||
Red Hat Inc * | 22,726 | 931,766 | ||||||
Redecard SA (Brazil) | 47,316 | 738,823 | ||||||
Rovi Corp * | 10,652 | 536,967 | ||||||
salesforce.com inc * | 14,939 | 1,670,180 | ||||||
Solera Holdings Inc | 26,069 | 1,151,207 | ||||||
Teradata Corp * | 37,124 | 1,431,501 | ||||||
10,135,307 | ||||||||
Materials — 5.6% | ||||||||
Intrepid Potash Inc * | 18,880 | 492,202 | ||||||
Lynas Corp Ltd (Australia) * | 215,955 | 285,960 | ||||||
Martin Marietta Materials Inc | 8,552 | 658,247 | ||||||
Nalco Holding Co | 27,809 | 701,065 | ||||||
Rockwood Holdings Inc * | 19,800 | 623,106 | ||||||
Texas Industries Inc | 5,353 | 168,727 | ||||||
2,929,307 | ||||||||
Telecommunication Services — 0.9% | ||||||||
Millicom International Cellular SA (Luxembourg) | 4,889 | 469,100 | ||||||
Total Common Stocks (Cost $37,329,458) | 51,179,482 | |||||||
SHORT-TERM INVESTMENT — 1.1% | ||||||||
Money Market Fund — 1.1% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 602,996 | 602,996 | ||||||
Total Short-Term Investment (Cost $602,996) | 602,996 | |||||||
TOTAL INVESTMENTS — 98.9% (Cost $38,228,440) | 52,078,464 | |||||||
OTHER ASSETS & LIABILITIES, NET — 1.1% | 556,686 | |||||||
NET ASSETS — 100.0% | $ | 52,635,150 | ||||||
See Notes to Financial Statements | A-38 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL MID-CAP GROWTH FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL MID-CAP GROWTH FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
Notes to Schedule of Investments
(a) | As of September 30, 2010, the Fund was diversified as a percentage of net assets as follows: |
Consumer Discretionary | 28.1 | % | ||
Information Technology | 19.2 | % | ||
Industrials | 19.1 | % | ||
Financials | 9.1 | % | ||
Health Care | 8.4 | % | ||
Materials | 5.6 | % | ||
Energy | 4.0 | % | ||
Consumer Staples | 3.4 | % | ||
Short-Term Investment | 1.1 | % | ||
Telecommunication Services | 0.9 | % | ||
98.9 | % | |||
Other Assets & Liabilities, Net | 1.1 | % | ||
100.0 | % | |||
(b) | Securities with a total aggregate value of $295,986 or 0.6% of the net assets were valued under the fair value procedures established by the Trust’s Board of Trustees. | |
(c) | As of September 30, 2010, 0.6% of the Fund’s net assets were reported illiquid by the portfolio manager under the Trust’s 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 11 in Notes to Financial Statements) as of September 30, 2010: |
Level 2 | Level 3 | |||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||
September 30, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||
Assets | Convertible Preferred Stocks (1) | $ | 295,986 | $ | — | $ | — | $ | 295,986 | |||||||||
Common Stocks | ||||||||||||||||||
Consumer Discretionary | 14,819,178 | 12,409,383 | 2,409,795 | — | ||||||||||||||
Consumer Staples | 1,784,137 | 1,784,137 | — | — | ||||||||||||||
Energy | 2,135,606 | 2,135,606 | — | — | ||||||||||||||
Financials | 4,774,905 | 4,774,905 | — | — | ||||||||||||||
Health Care | 4,416,573 | 4,416,573 | — | — | ||||||||||||||
Industrials | 9,715,369 | 7,462,405 | 2,252,964 | — | ||||||||||||||
Information Technology | 10,135,307 | 9,505,888 | 629,419 | — | ||||||||||||||
Materials | 2,929,307 | 2,643,347 | 285,960 | — | ||||||||||||||
Telecommunication Services | 469,100 | 469,100 | — | — | ||||||||||||||
51,179,482 | 45,601,344 | 5,578,138 | — | |||||||||||||||
Short-Term Investment | 602,996 | 602,996 | — | — | ||||||||||||||
Total | $ | 52,078,464 | $ | 46,204,340 | $ | 5,578,138 | $ | 295,986 | ||||||||||
The following is a reconciliation of investments for significant unobservable inputs (level 3) used in valuing the Fund’s assets and liabilities (See Note 11 in Notes to Financial Statements) for the six-month period ended September 30, 2010: |
Change in Net | ||||||||||||||||||||||||||||
Unrealized | ||||||||||||||||||||||||||||
Appreciation | ||||||||||||||||||||||||||||
(Depreciation) | ||||||||||||||||||||||||||||
Total Change | Transfers | on Level 3 | ||||||||||||||||||||||||||
Value, | Net | Total Net | in Net | In and/ | Holdings Held at | |||||||||||||||||||||||
Beginning | Purchases | Realized | Unrealized | or Out of | Value, | the End of Period, | ||||||||||||||||||||||
of Period | (Sales) | Gains (Losses) | Depreciation | Level 3 | End of Period | if Applicable | ||||||||||||||||||||||
Convertible Preferred Stocks (1) | $ | 816,515 | $ | — | $ | — | $ | (179,458 | ) | $ | (341,071 | ) | $ | 295,986 | $ | — | ||||||||||||
(1) | For equity securities categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | A-39 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL SMALL-CAP GROWTH FUND
Schedule of Investments
September 30, 2010 (Unaudited)
PL SMALL-CAP GROWTH FUND
Schedule of Investments
September 30, 2010 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS — 95.5% | ||||||||
Consumer Discretionary — 18.2% | ||||||||
Aeropostale Inc * | 5,380 | $ | 125,085 | |||||
American Public Education Inc * | 5,750 | 188,945 | ||||||
AnnTaylor Stores Corp * | 17,350 | 351,164 | ||||||
Carter’s Inc * | 7,700 | 202,741 | ||||||
Coldwater Creek Inc * | 25,750 | 135,703 | ||||||
Dana Holding Corp * | 23,200 | 285,824 | ||||||
Gaylord Entertainment Co * | 8,950 | 272,975 | ||||||
Grand Canyon Education Inc * | 8,700 | 190,791 | ||||||
Interval Leisure Group Inc * | 17,165 | 231,213 | ||||||
Life Time Fitness Inc * | 6,020 | 237,609 | ||||||
LKQ Corp * | 14,600 | 303,680 | ||||||
McCormick & Schmick’s Seafood Restaurants Inc * | 11,075 | 86,164 | ||||||
Phillips-Van Heusen Corp | 2,450 | 147,392 | ||||||
Shutterfly Inc * | 11,375 | 295,636 | ||||||
Sotheby’s | 7,900 | 290,878 | ||||||
The Cheesecake Factory Inc * | 8,800 | 232,936 | ||||||
The Children’s Place Retail Stores Inc * | 5,730 | 279,452 | ||||||
Tupperware Brands Corp | 6,575 | 300,872 | ||||||
Ulta Salon, Cosmetics & Fragrance Inc * | 9,800 | 286,160 | ||||||
Valassis Communications Inc * | 6,250 | 211,813 | ||||||
Williams-Sonoma Inc | 9,200 | 291,640 | ||||||
WMS Industries Inc * | 6,390 | 243,267 | ||||||
5,191,940 | ||||||||
Consumer Staples — 2.3% | ||||||||
Diamond Foods Inc | 5,600 | 229,544 | ||||||
Flowers Foods Inc | 7,205 | 178,972 | ||||||
The Hain Celestial Group Inc * | 8,035 | 192,679 | ||||||
United Natural Foods Inc * | 2,100 | 69,552 | ||||||
670,747 | ||||||||
Energy — 3.2% | ||||||||
Cal Dive International Inc * | 18,950 | 103,657 | ||||||
Concho Resources Inc * | 2,150 | 142,266 | ||||||
Dril-Quip Inc * | 2,015 | 125,152 | ||||||
Mariner Energy Inc * | 5,040 | 122,119 | ||||||
Patriot Coal Corp * | 15,520 | 177,083 | ||||||
Quicksilver Resources Inc * | 10,595 | 133,497 | ||||||
Rosetta Resources Inc * | 5,300 | 124,497 | ||||||
928,271 | ||||||||
Financials — 3.7% | ||||||||
Greenhill & Co Inc | 3,750 | 297,450 | ||||||
Investors Bancorp Inc * | 14,550 | 172,272 | ||||||
Ocwen Financial Corp * | 16,250 | 164,775 | ||||||
Platinum Underwriters Holdings Ltd (Bermuda) | 4,760 | 207,155 | ||||||
Signature Bank * | 5,300 | 205,852 | ||||||
1,047,504 | ||||||||
Health Care — 18.6% | ||||||||
Acorda Therapeutics Inc * | 3,050 | 100,711 | ||||||
AGA Medical Holdings Inc * | 8,350 | 116,566 | ||||||
Alexion Pharmaceuticals Inc * | 3,950 | 254,222 | ||||||
AMERIGROUP Corp * | 6,740 | 286,248 | ||||||
ArthroCare Corp * | 4,700 | 127,746 | ||||||
Auxilium Pharmaceuticals Inc * | 8,555 | 211,993 | ||||||
Bruker Corp * | 20,440 | 286,773 | ||||||
Catalyst Health Solutions Inc * | 7,700 | 271,117 | ||||||
Cubist Pharmaceuticals Inc * | 4,750 | 111,103 | ||||||
Gentiva Health Services Inc * | 8,980 | 196,213 | ||||||
Human Genome Sciences Inc * | 5,548 | 165,275 | ||||||
Incyte Corp Ltd * | 4,500 | 71,955 | ||||||
Insulet Corp * | 16,120 | 227,937 | ||||||
LifePoint Hospitals Inc * | 7,950 | 278,727 | ||||||
MedAssets Inc * | 10,850 | 228,284 | ||||||
Medicis Pharmaceutical Corp ‘A’ | 7,780 | 230,677 | ||||||
Medidata Solutions Inc * | 17,300 | 332,160 | ||||||
NuVasive Inc * | 5,150 | 180,971 | ||||||
Optimer Pharmaceuticals Inc * | 21,110 | 193,579 | ||||||
PAREXEL International Corp * | 12,475 | 288,547 | ||||||
Savient Pharmaceuticals Inc * | 11,845 | 270,895 | ||||||
Select Medical Holdings Corp * | 21,350 | 164,395 | ||||||
Sirona Dental Systems Inc * | 5,300 | 191,012 | ||||||
Thoratec Corp * | 5,320 | 196,734 | ||||||
United Therapeutics Corp * | 3,460 | 193,795 | ||||||
Wright Medical Group Inc * | 10,460 | 150,729 | ||||||
5,328,364 | ||||||||
Industrials — 17.9% | ||||||||
Actuant Corp ‘A’ | 15,245 | 350,025 | ||||||
Aecom Technology Corp * | 7,785 | 188,864 | ||||||
AirTran Holdings Inc * | 35,130 | 258,206 | ||||||
BE Aerospace Inc * | 8,395 | 254,452 | ||||||
CLARCOR Inc | 6,590 | 254,572 | ||||||
Clean Harbors Inc * | 3,550 | 240,513 | ||||||
Dollar Thrifty Automotive Group Inc * | 5,900 | 295,826 | ||||||
Esterline Technologies Corp * | 5,930 | 339,374 | ||||||
FTI Consulting Inc * | 5,610 | 194,611 | ||||||
Genesee & Wyoming Inc ‘A’ * | 7,120 | 308,937 | ||||||
GrafTech International Ltd * | 17,150 | 268,055 | ||||||
ICF International Inc * | 7,450 | 186,772 | ||||||
RBC Bearings Inc * | 9,965 | 338,611 | ||||||
Resources Connection Inc | 11,175 | 153,768 | ||||||
Tetra Tech Inc * | 7,850 | 164,615 | ||||||
The Geo Group Inc * | 13,830 | 322,931 | ||||||
Towers Watson & Co ‘A’ | 5,750 | 282,785 | ||||||
Waste Connections Inc * | 8,440 | 334,730 | ||||||
Woodward Governor Co | 11,530 | 373,803 | ||||||
5,111,450 | ||||||||
Information Technology — 24.8% | ||||||||
Acme Packet Inc * | 2,900 | 110,026 | ||||||
ANSYS Inc * | 3,170 | 133,933 | ||||||
Applied Micro Circuits Corp * | 23,250 | 232,500 | ||||||
Aruba Networks Inc * | 13,100 | 279,554 | ||||||
Atheros Communications Inc * | 7,745 | 204,081 | ||||||
Cadence Design Systems Inc * | 27,000 | 206,010 | ||||||
Concur Technologies Inc * | 5,150 | 254,616 | ||||||
Finisar Corp * | 18,400 | 345,736 | ||||||
GSI Commerce Inc * | 11,340 | 280,098 | ||||||
Informatica Corp * | 7,347 | 282,198 | ||||||
LogMeIn Inc * | 7,615 | 273,988 | ||||||
Mellanox Technologies Ltd (Israel) * | 8,990 | 176,564 | ||||||
Monolithic Power Systems Inc * | 11,195 | 182,814 | ||||||
Netlogic Microsystems Inc * | 7,130 | 196,645 | ||||||
NICE Systems Ltd ADR (Israel) * | 10,145 | 317,437 | ||||||
Novellus Systems Inc * | 12,300 | 326,934 | ||||||
OpenTable Inc * | 5,390 | 366,951 | ||||||
Pegasystems Inc | 7,830 | 243,122 | ||||||
QLIK Technologies Inc * | 8,400 | 185,220 | ||||||
QLogic Corp * | 14,750 | 260,190 | ||||||
Riverbed Technology Inc * | 6,650 | 303,107 | ||||||
Skyworks Solutions Inc * | 12,230 | 252,916 | ||||||
SMART Technologies Inc ‘A’ (Canada) * | 6,500 | 88,075 | ||||||
Solera Holdings Inc | 6,865 | 303,158 | ||||||
SRA International Inc ‘A’ * | 5,150 | 101,558 | ||||||
Taleo Corp ‘A’ * | 9,174 | 265,954 | ||||||
The Ultimate Software Group Inc * | 6,000 | 231,840 | ||||||
VanceInfo Technologies Inc ADR (Cayman) * | 7,681 | 248,404 | ||||||
VistaPrint NV (Netherlands) * | 4,875 | 188,419 | ||||||
Wright Express Corp * | 7,465 | 266,575 | ||||||
7,108,623 | ||||||||
See Notes to Financial Statements | A-40 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL SMALL-CAP GROWTH FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL SMALL-CAP GROWTH FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
Shares | Value | |||||||
Materials — 4.0% | ||||||||
Gammon Gold Inc (Canada) * | 16,200 | $ | 113,562 | |||||
Kraton Performance Polymers Inc * | 5,400 | 146,609 | ||||||
Louisiana-Pacific Corp * | 23,750 | 179,787 | ||||||
Rockwood Holdings Inc * | 9,050 | 284,803 | ||||||
Silgan Holdings Inc | 6,390 | 202,562 | ||||||
Solutia Inc * | 5,350 | 85,706 | ||||||
STR Holdings Inc * | 5,750 | 123,854 | ||||||
1,136,883 | ||||||||
Telecommunication Services — 1.6% | ||||||||
SBA Communications Corp ‘A’ * | 4,150 | 167,244 | ||||||
Syniverse Holdings Inc * | 13,085 | 296,636 | ||||||
463,880 | ||||||||
Utilities — 1.2% | ||||||||
ITC Holdings Corp | 5,280 | 328,679 | ||||||
Total Common Stocks (Cost $21,063,688) | 27,316,341 | |||||||
SHORT-TERM INVESTMENT — 5.1% | ||||||||
Money Market Fund — 5.1% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 1,462,084 | 1,462,084 | ||||||
Total Short-Term Investment (Cost $1,462,084) | 1,462,084 | |||||||
TOTAL INVESTMENTS — 100.6% (Cost $22,525,772) | 28,778,425 | |||||||
OTHER ASSETS & LIABILITIES, NET — (0.6%) | (169,511 | ) | ||||||
NET ASSETS — 100.0% | $ | 28,608,914 | ||||||
Notes to Schedule of Investments
(a) | As of September 30, 2010, the Fund was diversified as a percentage of net assets as follows: |
Information Technology | 24.8 | % | ||
Health Care | 18.6 | % | ||
Consumer Discretionary | 18.2 | % | ||
Industrials | 17.9 | % | ||
Short-Term Investment | 5.1 | % | ||
Materials | 4.0 | % | ||
Financials | 3.7 | % | ||
Energy | 3.2 | % | ||
Consumer Staples | 2.3 | % | ||
Telecommunication Services | 1.6 | % | ||
Utilities | 1.2 | % | ||
100.6 | % | |||
Other Assets & Liabilities, Net | (0.6 | %) | ||
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 11 in Notes to Financial Statements) as of September 30, 2010: |
Level 2 | Level 3 | |||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||
September 30, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||
Assets | Common Stocks (1) | $ | 27,316,341 | $ | 27,316,341 | $ | — | $ | — | |||||||||
Short-Term Investment | 1,462,084 | 1,462,084 | — | — | ||||||||||||||
Total | $ | 28,778,425 | $ | 28,778,425 | $ | — | $ | — | ||||||||||
(1) | For equity securities categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | A-41 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL SMALL-CAP VALUE FUND
Schedule of Investments
September 30, 2010 (Unaudited)
PL SMALL-CAP VALUE FUND
Schedule of Investments
September 30, 2010 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS — 93.3% | ||||||||
Consumer Discretionary — 9.0% | ||||||||
Aaron’s Inc | 33,400 | $ | 616,230 | |||||
Bob Evans Farms Inc | 5,800 | 162,806 | ||||||
Brown Shoe Co Inc | 4,461 | 51,168 | ||||||
Dover Downs Gaming & Entertainment Inc | 3,800 | 12,920 | ||||||
Hillenbrand Inc | 12,200 | 262,422 | ||||||
International Speedway Corp ‘A’ | 15,000 | 366,000 | ||||||
Jones Apparel Group Inc | 24,600 | 483,144 | ||||||
PetMed Express Inc | 11,900 | 208,250 | ||||||
Phillips-Van Heusen Corp | 11,800 | 709,888 | ||||||
RadioShack Corp | 29,700 | 633,501 | ||||||
Sturm Ruger & Co Inc | 11,800 | 160,952 | ||||||
The Buckle Inc | 23,500 | 623,690 | ||||||
The Pep Boys-Manny, Moe & Jack | 6,600 | 69,828 | ||||||
Weight Watchers International Inc | 20,100 | 626,919 | ||||||
Wolverine World Wide Inc | 22,500 | 652,725 | ||||||
5,640,443 | ||||||||
Consumer Staples — 8.6% | ||||||||
Cal-Maine Foods Inc | 11,000 | 318,780 | ||||||
Casey’s General Stores Inc | 15,900 | 663,825 | ||||||
Cia Cervecerias Unidas SA ADR (Chile) | 4,800 | 267,120 | ||||||
Corn Products International Inc | 20,500 | 768,750 | ||||||
Del Monte Foods Co | 54,100 | 709,251 | ||||||
Embotelladora Andina SA ‘B’ ADR (Chile) | 8,400 | 240,660 | ||||||
Ruddick Corp | 16,800 | 582,624 | ||||||
Sanderson Farms Inc | 13,300 | 575,757 | ||||||
The Andersons Inc | 6,609 | 250,481 | ||||||
Universal Corp | 14,000 | 561,260 | ||||||
Vector Group Ltd | 7,033 | 131,508 | ||||||
WD-40 Co | 6,200 | 235,724 | ||||||
Weis Markets Inc | 3,600 | 140,868 | ||||||
5,446,608 | ||||||||
Energy — 15.5% | ||||||||
Alliance Resource Partners LP | 4,200 | 245,028 | ||||||
Berry Petroleum Co ‘A’ | 21,200 | 672,676 | ||||||
Buckeye Partners LP | 9,500 | 603,250 | ||||||
Cimarex Energy Co | 11,100 | 734,598 | ||||||
El Paso Pipeline Partners LP | 11,000 | 352,770 | ||||||
EXCO Resources Inc | 42,600 | 633,462 | ||||||
Frontline Ltd (Bermuda) | 22,100 | 628,303 | ||||||
Holly Corp | 25,400 | 730,250 | ||||||
Linn Energy LLC | 26,200 | 837,352 | ||||||
Magellan Midstream Partners LP | 13,700 | 704,865 | ||||||
NuStar Energy LP | 9,000 | 555,570 | ||||||
Ship Finance International Ltd (Bermuda) | 16,700 | 324,481 | ||||||
Southern Union Co | 27,200 | 654,432 | ||||||
Sunoco Logistics Partners LP | 4,200 | 330,330 | ||||||
TC Pipelines LP | 3,600 | 167,580 | ||||||
Tidewater Inc | 14,500 | 649,745 | ||||||
TransMontaigne Partners LP | 4,200 | 144,228 | ||||||
Tsakos Energy Navigation Ltd (Bermuda) | 11,000 | 146,520 | ||||||
World Fuel Services Corp | 24,800 | 645,048 | ||||||
9,760,488 | ||||||||
Financials — 13.4% | ||||||||
Advance America Cash Advance Centers Inc | 23,700 | 95,511 | ||||||
American Equity Investment Life Holding Co | 15,800 | 161,792 | ||||||
American Financial Group Inc | 23,300 | 712,514 | ||||||
American Physicians Capital Inc | 3,300 | 136,818 | ||||||
Bank of Hawaii Corp | 14,200 | 637,864 | ||||||
Cash America International Inc | 16,300 | 570,500 | ||||||
Chimera Investment Corp REIT | 148,500 | 586,575 | ||||||
CommonWealth REIT | 11,350 | 290,560 | ||||||
CreXus Investment Corp REIT | 8,000 | 96,240 | ||||||
Cullen/Frost Bankers Inc | 11,400 | 614,118 | ||||||
Delphi Financial Group Inc ‘A’ | 22,500 | 562,275 | ||||||
Equity One Inc REIT | 19,200 | 324,096 | ||||||
Federated Investors Inc ‘B’ | 26,300 | 598,588 | ||||||
Franklin Street Properties Corp REIT | 30,200 | 375,084 | ||||||
Healthcare Realty Trust Inc REIT | 23,500 | 549,665 | ||||||
Infinity Property & Casualty Corp | 4,300 | 209,711 | ||||||
Montpelier Re Holdings Ltd (Bermuda) | 4,000 | 69,280 | ||||||
Prosperity Bancshares Inc | 6,400 | 207,808 | ||||||
PS Business Parks Inc REIT | 7,100 | 401,647 | ||||||
Raymond James Financial Inc | 20,800 | 526,864 | ||||||
RLI Corp | 7,100 | 402,002 | ||||||
Sovran Self Storage Inc REIT | 8,600 | 325,940 | ||||||
8,455,452 | ||||||||
Health Care — 6.8% | ||||||||
Invacare Corp | 13,700 | 363,187 | ||||||
Owens & Minor Inc | 22,600 | 643,196 | ||||||
PerkinElmer Inc | 29,550 | 683,787 | ||||||
STERIS Corp | 20,800 | 690,976 | ||||||
Teleflex Inc | 11,700 | 664,326 | ||||||
The Cooper Cos Inc | 16,900 | 781,118 | ||||||
West Pharmaceutical Services Inc | 13,700 | 470,047 | ||||||
4,296,637 | ||||||||
Industrials — 11.1% | ||||||||
Baltic Trading Ltd | 8,600 | 94,686 | ||||||
Barnes Group Inc | 22,100 | 388,739 | ||||||
Belden Inc | 18,400 | 485,392 | ||||||
Bucyrus International Inc | 11,300 | 783,655 | ||||||
Crane Co | 18,900 | 717,066 | ||||||
Cubic Corp | 5,300 | 216,240 | ||||||
Curtiss-Wright Corp | 17,000 | 515,100 | ||||||
Elbit Systems Ltd (Israel) | 1,700 | 90,151 | ||||||
Ennis Inc | 14,300 | 255,827 | ||||||
Great Lakes Dredge & Dock Co | 4,900 | 28,469 | ||||||
Harsco Corp | 20,000 | 491,600 | ||||||
KBR Inc | 27,800 | 684,992 | ||||||
SkyWest Inc | 21,000 | 293,160 | ||||||
The Brink’s Co | 22,200 | 510,600 | ||||||
Triumph Group Inc | 8,600 | 641,474 | ||||||
UniFirst Corp | 3,900 | 172,185 | ||||||
Valmont Industries Inc | 8,900 | 644,360 | ||||||
7,013,696 | ||||||||
Information Technology — 2.3% | ||||||||
AVX Corp | 2,700 | 37,314 | ||||||
Diebold Inc | 21,200 | 659,108 | ||||||
Himax Technologies Inc ADR (Cayman) | 20,500 | 50,840 | ||||||
Jabil Circuit Inc | 45,600 | 657,096 | ||||||
Micrel Inc | 1,600 | 15,776 | ||||||
1,420,134 | ||||||||
Materials — 13.5% | ||||||||
AMCOL International Corp | 7,800 | 204,282 | ||||||
Bemis Co Inc | 22,300 | 708,025 | ||||||
CF Industries Holdings Inc | 1,038 | 99,129 | ||||||
Compass Minerals International Inc | 9,500 | 727,890 | ||||||
HudBay Minerals Inc (Canada) | 47,200 | 672,057 | ||||||
IAMGOLD Corp (Canada) | 43,500 | 770,385 | ||||||
Innophos Holdings Inc | 9,400 | 311,140 | ||||||
International Flavors & Fragrances Inc | 15,900 | 771,468 | ||||||
Methanex Corp (Canada) | 18,500 | 453,065 | ||||||
Royal Gold Inc | 17,100 | 852,264 | ||||||
RPM International Inc | 34,500 | 687,240 | ||||||
Sensient Technologies Corp | 20,600 | 628,094 |
See Notes to Financial Statements | A-42 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL SMALL-CAP VALUE FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL SMALL-CAP VALUE FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
Shares | Value | |||||||
Sonoco Products Co | 21,700 | $ | 725,648 | |||||
The Lubrizol Corp | 8,500 | 900,745 | ||||||
8,511,432 | ||||||||
Telecommunication Services — 0.2% | ||||||||
Partner Communications Co Ltd ADR (Israel) | 6,300 | 115,038 | ||||||
Utilities — 12.9% | ||||||||
AGL Resources Inc | 15,800 | 606,088 | ||||||
American Water Works Co Inc | 25,300 | 588,731 | ||||||
AmeriGas Partners LP | 3,400 | 152,354 | ||||||
Atmos Energy Corp | 21,100 | 617,175 | ||||||
Avista Corp | 15,900 | 331,992 | ||||||
Cleco Corp | 21,000 | 622,020 | ||||||
Energen Corp | 13,600 | 621,792 | ||||||
National Fuel Gas Co | 14,500 | 751,245 | ||||||
OGE Energy Corp | 15,800 | 629,946 | ||||||
Southwest Gas Corp | 13,000 | 436,670 | ||||||
Suburban Propane Partners LP | 7,000 | 381,010 | ||||||
UGI Corp | 21,100 | 603,671 | ||||||
Vectren Corp | 21,400 | 553,618 | ||||||
Westar Energy Inc | 24,300 | 588,789 | ||||||
WGL Holdings Inc | 16,400 | 619,592 | ||||||
8,104,693 | ||||||||
Total Common Stocks (Cost $51,570,043) | 58,764,621 | |||||||
SHORT-TERM INVESTMENT — 7.0% | ||||||||
Money Market Fund — 7.0% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 4,379,551 | 4,379,551 | ||||||
Total Short-Term Investment (Cost $4,379,551) | 4,379,551 | |||||||
TOTAL INVESTMENTS — 100.3% (Cost $55,949,594) | 63,144,172 | |||||||
OTHER ASSETS & LIABILITIES, NET — (0.3%) | (161,361 | ) | ||||||
NET ASSETS — 100.0% | $ | 62,982,811 | ||||||
Notes to Schedule of Investments
(a) | As of September 30, 2010, the Fund was diversified as a percentage of net assets as follows: |
Energy | 15.5 | % | ||
Materials | 13.5 | % | ||
Financials | 13.4 | % | ||
Utilities | 12.9 | % | ||
Industrials | 11.1 | % | ||
Consumer Discretionary | 9.0 | % | ||
Consumer Staples | 8.6 | % | ||
Short-Term Investment | 7.0 | % | ||
Health Care | 6.8 | % | ||
Information Technology | 2.3 | % | ||
Telecommunication Services | 0.2 | % | ||
100.3 | % | |||
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 11 in Notes to Financial Statements) as of September 30, 2010: |
Level 2 | Level 3 | |||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||
September 30, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||
Assets | Common Stocks (1) | $ | 58,764,621 | $ | 58,764,621 | $ | — | $ | — | |||||||||
Short-Term Investment | 4,379,551 | 4,379,551 | — | — | ||||||||||||||
Total | $ | 63,144,172 | $ | 63,144,172 | $ | — | $ | — | ||||||||||
(1) | For equity securities categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | A-43 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL REAL ESTATE FUND
Schedule of Investments
September 30, 2010 (Unaudited)
PL REAL ESTATE FUND
Schedule of Investments
September 30, 2010 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS — 95.0% | ||||||||
Consumer Discretionary — 4.2% | ||||||||
Starwood Hotels & Resorts Worldwide Inc | 28,447 | $ | 1,494,890 | |||||
Financials — 89.6% | ||||||||
Acadia Realty Trust REIT | 21,533 | 409,127 | ||||||
AMB Property Corp REIT | 31,426 | 831,846 | ||||||
American Campus Communities Inc REIT | 2,310 | 70,316 | ||||||
Apartment Investment & Management Co ‘A’ REIT | 9,210 | 196,910 | ||||||
AvalonBay Communities Inc REIT | 12,979 | 1,348,907 | ||||||
BioMed Realty Trust Inc REIT | 4,425 | 79,296 | ||||||
Boston Properties Inc REIT | 21,479 | 1,785,334 | ||||||
Brookfield Properties Corp (Canada) | 67,159 | 1,042,308 | ||||||
Camden Property Trust REIT | 18,126 | 869,504 | ||||||
Colony Financial Inc REIT | 4,930 | 91,106 | ||||||
CommonWealth REIT | 2,497 | 63,923 | ||||||
Coresite Realty Corp REIT * | 4,080 | 66,871 | ||||||
Cousins Properties Inc REIT | 65,746 | 469,426 | ||||||
CreXus Investment Corp REIT | 6,780 | 81,563 | ||||||
DCT Industrial Trust Inc REIT | 46,000 | 220,340 | ||||||
Digital Realty Trust Inc REIT | 2,840 | 175,228 | ||||||
Douglas Emmett Inc REIT | 5,150 | 90,177 | ||||||
Duke Realty Corp REIT | 15,250 | 176,748 | ||||||
Equity Lifestyle Properties Inc REIT | 11,934 | 650,164 | ||||||
Equity One Inc REIT | 281 | 4,743 | ||||||
Equity Residential REIT | 64,945 | 3,089,434 | ||||||
Federal Realty Investment Trust REIT | 5,928 | 484,080 | ||||||
Forest City Enterprises Inc ‘A’ * | 64,093 | 822,313 | ||||||
HCP Inc REIT | 30,800 | 1,108,184 | ||||||
Healthcare Realty Trust Inc REIT | 31,699 | 741,440 | ||||||
Host Hotels & Resorts Inc REIT | 148,002 | 2,143,069 | ||||||
Hudson Pacific Properties Inc REIT | 9,670 | 158,298 | ||||||
Kilroy Realty Corp REIT | 3,654 | 121,094 | ||||||
Kite Realty Group Trust REIT | 10,500 | 46,620 | ||||||
Lexington Realty Trust REIT | 2,670 | 19,117 | ||||||
Liberty Property Trust REIT | 8,604 | 274,468 | ||||||
LTC Properties Inc REIT | 2,480 | 63,290 | ||||||
Mack-Cali Realty Corp REIT | 26,119 | 854,352 | ||||||
Nationwide Health Properties Inc REIT | 4,510 | 174,402 | ||||||
Parkway Properties Inc REIT | 1,280 | 18,944 | ||||||
Plum Creek Timber Co Inc REIT | 32,179 | 1,135,919 | ||||||
Post Properties Inc REIT | 8,160 | 227,827 | ||||||
PS Business Parks Inc REIT | 3,671 | 207,668 | ||||||
Public Storage REIT | 17,397 | 1,688,205 | ||||||
Rayonier Inc REIT | 3,920 | 196,470 | ||||||
Regency Centers Corp REIT | 43,761 | 1,727,247 | ||||||
Retail Opportunity Investments Corp | 29,913 | 286,267 | ||||||
Senior Housing Properties Trust REIT | 25,763 | 605,431 | ||||||
Simon Property Group Inc REIT | 43,937 | 4,074,717 | ||||||
Sovran Self Storage Inc REIT | 2,912 | 110,365 | ||||||
Starwood Property Trust Inc REIT | 14,290 | 283,942 | ||||||
Taubman Centers Inc REIT | 2,423 | 108,090 | ||||||
The Macerich Co REIT | 3,812 | 163,725 | ||||||
Ventas Inc REIT | 7,830 | 403,793 | ||||||
Vornado Realty Trust REIT | 24,401 | 2,087,018 | ||||||
Winthrop Realty Trust REIT | 8,790 | 108,645 | ||||||
32,258,271 | ||||||||
Health Care — 1.2% | ||||||||
Assisted Living Concepts Inc ‘A’ * | 12,210 | 371,673 | ||||||
Capital Senior Living Corp * | 12,030 | 64,121 | ||||||
435,794 | ||||||||
Total Common Stocks (Cost $22,586,163) | 34,188,955 | |||||||
SHORT-TERM INVESTMENT — 5.6% | ||||||||
Money Market Fund — 5.6% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 2,011,284 | 2,011,284 | ||||||
Total Short-Term Investment (Cost $2,011,284) | 2,011,284 | |||||||
TOTAL INVESTMENTS — 100.6% (Cost $24,597,447) | 36,200,239 | |||||||
OTHER ASSETS & LIABILITIES, NET — (0.6%) | (211,573 | ) | ||||||
NET ASSETS — 100.0% | $ | 35,988,666 | ||||||
Notes to Schedule of Investments
(a) | As of September 30, 2010, the Fund was diversified by property sector as a percentage of net assets as follows: |
Specialized | 23.4 | % | ||
Retail | 19.4 | % | ||
Residential | 17.8 | % | ||
Diversified | 9.8 | % | ||
Office | 9.5 | % | ||
Real Estate Operating Companies | 5.6 | % | ||
Hotels, Resort & Cruise Lines | 4.2 | % | ||
Industrial | 2.9 | % | ||
Mortgage | 1.2 | % | ||
Health Care Facilities | 1.2 | % | ||
95.0 | % | |||
Short-Term Investment | 5.6 | % | ||
Other Assets & Liabilities, Net | (0.6 | %) | ||
100.0 | % | |||
See Notes to Financial Statements | A-44 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL REAL ESTATE FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL REAL ESTATE FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
(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 11 in Notes to Financial Statements) as of September 30, 2010: |
Level 2 | Level 3 | |||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||
September 30, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||
Assets | Common Stocks (1) | $ | 34,188,955 | $ | 34,188,955 | $ | — | $ | — | |||||||||
Short-Term Investment | 2,011,284 | 2,011,284 | — | — | ||||||||||||||
Total | $ | 36,200,239 | $ | 36,200,239 | $ | — | $ | — | ||||||||||
(1) | For equity securities categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | A-45 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL EMERGING MARKETS FUND
Schedule of Investments
September 30, 2010 (Unaudited)
PL EMERGING MARKETS FUND
Schedule of Investments
September 30, 2010 (Unaudited)
Shares | Value | |||||||
PREFERRED STOCKS — 7.8% | ||||||||
Brazil — 7.8% | ||||||||
Anhanguera Educacional Participacoes SA | 11,500 | $ | 203,901 | |||||
Cia de Bebidas das Americas ADR | 4,000 | 495,120 | ||||||
Lojas Americanas SA | 74,840 | 676,745 | ||||||
Petroleo Brasileiro SA ADR | 51,400 | 1,686,948 | ||||||
Vale SA ADR | 36,040 | 1,000,110 | ||||||
4,062,824 | ||||||||
Total Preferred Stocks (Cost $2,870,409) | 4,062,824 | |||||||
COMMON STOCKS — 87.5% | ||||||||
Bermuda — 0.7% | ||||||||
Credicorp Ltd | 2,430 | 276,777 | ||||||
Dairy Farm International Holdings Ltd | 15,400 | 117,040 | ||||||
393,817 | ||||||||
Brazil — 6.7% | ||||||||
B2W Cia Global do Varejo | 21,200 | 389,794 | ||||||
BM&F BOVESPA SA | 61,816 | 517,325 | ||||||
Cyrela Brazil Realty SA Empreendimentos e Participacoes | 22,800 | 321,652 | ||||||
Diagnosticos da America SA | 25,900 | 307,218 | ||||||
Embraer-Empresa Brasileira de Aeronautica SA ADR | 19,570 | 555,592 | ||||||
Estacio Participacoes SA | 6,500 | 74,527 | ||||||
Fleury SA | 1,000 | 12,405 | ||||||
MRV Engenharia e Participacoes SA | 28,300 | 271,794 | ||||||
Multiplan Empreendimentos Imobiliarios SA | 9,400 | 199,833 | ||||||
Natura Cosmeticos SA | 33,300 | 899,612 | ||||||
3,549,752 | ||||||||
Canada — 1.0% | ||||||||
Niko Resources Ltd | 2,448 | 240,922 | ||||||
Pacific Rubiales Energy Corp * | 10,018 | 281,680 | ||||||
522,602 | ||||||||
Cayman -2.1% | ||||||||
Ambow Education Holding Ltd ADR * | 7,440 | 74,102 | ||||||
Baidu Inc ADR * | 2,530 | 259,629 | ||||||
Ctrip.com International Ltd ADR * | 5,730 | 273,608 | ||||||
Mindray Medical International Ltd ADR | 1,620 | 47,903 | ||||||
Tencent Holdings Ltd | 15,000 | 326,711 | ||||||
Tingyi Holding Corp | 44,000 | 120,902 | ||||||
1,102,855 | ||||||||
Chile — 1.0% | ||||||||
Banco Santander Chile SA | 1,931,299 | 179,693 | ||||||
Cencosud SA | 50,297 | 340,582 | ||||||
520,275 | ||||||||
China -1.6% | ||||||||
China Shenhua Energy Co Ltd ‘H’ | 66,000 | 271,801 | ||||||
PetroChina Co Ltd ‘H’ | 422,000 | 490,655 | ||||||
Shanghai Zhenhua Heavy Industry Co Ltd ‘B’ * | 130,090 | 71,329 | ||||||
833,785 | ||||||||
Colombia — 1.0% | ||||||||
Almacenes Exito SA | 3,698 | 45,939 | ||||||
Almacenes Exito SA GDR ~ | 9,500 | 118,127 | ||||||
BanColombia SA ADR | 5,360 | 351,777 | ||||||
515,843 | ||||||||
Denmark — 1.0% | ||||||||
Carlsberg AS ‘B’ | 5,079 | 528,456 | ||||||
Egypt — 1.7% | ||||||||
Commercial International Bank SAE | 65,456 | 492,557 | ||||||
Eastern Co SAE | 3,596 | 80,003 | ||||||
Egyptian Financial Group-Hermes Holding | 62,591 | 319,735 | ||||||
892,295 | ||||||||
France — 0.6% | ||||||||
CFAO SA | 8,580 | 342,658 | ||||||
Hong Kong — 8.8% | ||||||||
China Mobile Ltd | 60,500 | 618,910 | ||||||
China Resources Enterprise Ltd | 151,000 | 682,305 | ||||||
CNOOC Ltd | 639,000 | 1,240,271 | ||||||
Hang Lung Group Ltd | 35,000 | 228,218 | ||||||
Hang Lung Properties Ltd | 157,000 | 764,566 | ||||||
Hong Kong Exchanges & Clearing Ltd | 55,600 | 1,093,084 | ||||||
4,627,354 | ||||||||
India — 12.8% | ||||||||
Asian Paints Ltd | 1,200 | 71,230 | ||||||
Colgate Palmolive India Ltd | 6,900 | 133,961 | ||||||
Divi’s Laboratories Ltd | 15,744 | 241,842 | ||||||
HDFC Bank Ltd ADR | 4,060 | 748,542 | ||||||
Hindustan Unilever Ltd | 108,660 | 745,871 | ||||||
Housing Development Finance Corp | 55,692 | 907,519 | ||||||
ICICI Bank Ltd ADR | 11,090 | 552,837 | ||||||
Infosys Technologies Ltd | 31,152 | 2,109,835 | ||||||
Sun Pharmaceutical Industries Ltd * | 4,848 | 217,949 | ||||||
Tata Consultancy Services Ltd | 28,446 | 585,650 | ||||||
Zee Entertainment Enterprises Ltd | 60,893 | 406,566 | ||||||
6,721,802 | ||||||||
Indonesia — 2.6% | ||||||||
P.T. Astra International Tbk | 62,400 | 395,989 | ||||||
P.T. Bank Central Asia Tbk | 294,000 | 220,543 | ||||||
P.T. Telekomunikasi Indonesia Tbk | 470,900 | 485,730 | ||||||
P.T. Unilever Indonesia Tbk | 134,500 | 253,878 | ||||||
1,356,140 | ||||||||
Kenya — 0.1% | ||||||||
East African Breweries Ltd | 15,205 | 35,400 | ||||||
Luxembourg — 1.2% | ||||||||
Tenaris SA ADR | 15,780 | 606,268 | ||||||
Mexico — 9.3% | ||||||||
America Movil SAB de CV ‘L’ ADR | 36,030 | 1,921,480 | ||||||
Corporacion GEO SAB de CV ‘B’ * | 38,715 | 110,846 | ||||||
Fomento Economico Mexicano SAB de CV | 118,431 | 602,321 | ||||||
Fomento Economico Mexicano SAB de CV ADR | 11,950 | 606,224 | ||||||
Grupo Financiero Inbursa SAB de CV ‘O’ | 29,948 | 118,113 | ||||||
Grupo Modelo SAB de CV ‘C’ | 97,681 | 540,276 | ||||||
Grupo Televisa SA ADR | 15,620 | 295,530 | ||||||
Impulsora del Desarrollo y el Empleo en America Latina SAB de CV * | 86,000 | 104,415 | ||||||
SARE Holding SAB de CV ‘B’ * | 155,018 | 34,075 | ||||||
Wal-Mart de Mexico SAB de CV ‘V’ | 232,476 | 584,804 | ||||||
4,918,084 | ||||||||
See Notes to Financial Statements | A-46 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL EMERGING MARKETS FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL EMERGING MARKETS FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
Shares | Value | |||||||
Nigeria — 0.3% | ||||||||
Nigerian Breweries PLC | 340,600 | $ | 164,371 | |||||
Norway — 0.4% | ||||||||
DNO International ASA * | 131,068 | 202,230 | ||||||
Philippines — 3.2% | ||||||||
Jollibee Foods Corp | 111,800 | 234,209 | ||||||
Philippine Long Distance Telephone Co | 4,100 | 244,218 | ||||||
SM Investments Corp | 23,070 | 299,122 | ||||||
SM Prime Holdings Inc | 3,112,460 | 893,012 | ||||||
1,670,561 | ||||||||
Russia — 4.1% | ||||||||
Magnit OJSC | 11,420 | 1,333,372 | ||||||
NovaTek OAO GDR (LI) | 5,500 | 473,662 | ||||||
NovaTek OAO GDR (OTC)~ ∆ | 4,000 | 344,482 | ||||||
2,151,516 | ||||||||
South Africa — 5.6% | ||||||||
Anglo Platinum Ltd * | 6,126 | 579,525 | ||||||
Impala Platinum Holdings Ltd | 37,319 | 961,275 | ||||||
JSE Ltd | 2,751 | 29,029 | ||||||
MTN Group Ltd | 34,315 | 619,742 | ||||||
Standard Bank Group Ltd | 46,178 | 732,993 | ||||||
2,922,564 | ||||||||
South Korea — 4.4% | ||||||||
MegaStudy Co Ltd | 1,725 | 255,574 | ||||||
NHN Corp * | 8,100 | 1,392,227 | ||||||
Shinsegae Co Ltd | 1,314 | 693,606 | ||||||
2,341,407 | ||||||||
Taiwan — 6.0% | ||||||||
Epistar Corp | 212,000 | 669,950 | ||||||
HTC Corp | 32,772 | 744,367 | ||||||
MediaTek Inc | 49,684 | 697,175 | ||||||
Synnex Technology International Corp | 84,118 | 195,198 | ||||||
Taiwan Semiconductor Manufacturing Co Ltd | 420,993 | 833,145 | ||||||
3,139,835 | ||||||||
Thailand — 0.2% | ||||||||
Siam Commercial Bank PCL | 36,000 | 122,768 | ||||||
Turkey — 3.0% | ||||||||
Anadolu Efes Biracilik Ve Malt Sanayii AS | 9,738 | 152,075 | ||||||
BIM Birlesik Magazalar AS | 11,101 | 320,389 | ||||||
Enka Insaat ve Sanayi AS | 133,850 | 582,857 | ||||||
Haci Omer Sabanci Holding AS | 96,005 | 496,215 | ||||||
Turkiye Garanti Bankasi AS | 959 | 5,557 | ||||||
1,557,093 | ||||||||
United Arab Emirates — 0.7% | ||||||||
DP World Ltd | 701,950 | 365,206 | ||||||
United Kingdom — 6.6% | ||||||||
Anglo American PLC | 26,807 | 1,064,091 | ||||||
Antofagasta PLC | 5,060 | 98,364 | ||||||
Cairn Energy PLC * | 66,200 | 472,429 | ||||||
SABMiller PLC | 39,900 | 1,277,340 | ||||||
Tullow Oil PLC | 28,530 | 571,114 | ||||||
3,483,338 | ||||||||
United States — 0.8% | ||||||||
Sohu.com Inc * | 7,710 | 444,250 | ||||||
Total Common Stocks (Cost $27,600,534) | 46,032,525 | |||||||
EQUITY-LINKED STRUCTURED SECURITIES — 0.1% | ||||||||
Vietnam — 0.1% | ||||||||
UBS AG (for Vietnam Dairy Products) Exp 02/12/12 * Δ | 11,700 | 53,126 | ||||||
Total Equity-Linked Structured Securities (Cost $54,617) | 53,126 | |||||||
SHORT-TERM INVESTMENT — 3.7% | ||||||||
Money Market Fund — 3.7% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 1,958,333 | 1,958,333 | ||||||
Total Short-Term Investment (Cost $1,958,333) | 1,958,333 | |||||||
TOTAL INVESTMENTS — 99.1% (Cost $32,483,893) | 52,106,808 | |||||||
OTHER ASSETS & LIABILITIES, NET — 0.9% | 493,481 | |||||||
NET ASSETS — 100.0% | $ | 52,600,289 | ||||||
Notes to Schedule of Investments
(a) | As of September 30, 2010, the Fund was diversified as a percentage of net assets as follows: |
�� | ||||
Consumer Staples | 20.7 | % | ||
Financials | 17.7 | % | ||
Information Technology | 15.7 | % | ||
Energy | 13.1 | % | ||
Consumer Discretionary | 8.3 | % | ||
Telecommunication Services | 7.4 | % | ||
Materials | 7.2 | % | ||
Industrials | 3.7 | % | ||
Short-Term Investment | 3.7 | % | ||
Health Care | 1.6 | % | ||
99.1 | % | |||
Other Assets & Liabilities, Net | 0.9 | % | ||
100.0 | % | |||
See Notes to Financial Statements | A-47 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL EMERGING MARKETS FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL EMERGING MARKETS FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
(b) | As of September 30, 2010, the Fund was diversified by geographical region as a percentage of net assets as follows: |
Brazil | 14.5 | % | ||
India | 12.8 | % | ||
Mexico | 9.3 | % | ||
Hong Kong | 8.8 | % | ||
United Kingdom | 6.6 | % | ||
Taiwan | 6.0 | % | ||
South Africa | 5.6 | % | ||
United States | 4.5 | % | ||
South Korea | 4.4 | % | ||
Russia | 4.1 | % | ||
Philippines | 3.2 | % | ||
Turkey | 3.0 | % | ||
Indonesia | 2.6 | % | ||
Cayman | 2.1 | % | ||
Egypt | 1.7 | % | ||
China | 1.6 | % | ||
Luxembourg | 1.2 | % | ||
Denmark | 1.0 | % | ||
Canada | 1.0 | % | ||
Chile | 1.0 | % | ||
Colombia | 1.0 | % | ||
Others (each less than 1.0%) | 3.1 | % | ||
99.1 | % | |||
Other Assets & Liabilities, Net | 0.9 | % | ||
100.0 | % | |||
(c) | As of September 30, 2010, 0.8% of the Fund’s net assets were reported illiquid by the portfolio manager under the Trust’s 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 11 in Notes to Financial Statements) as of September 30, 2010: |
Level 2 | Level 3 | |||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||
September 30, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||
Assets | Preferred Stocks (1) | $ | 4,062,824 | $ | 4,062,824 | $ | — | $ | — | |||||||||
Common Stocks | ||||||||||||||||||
Bermuda | 393,817 | 393,817 | — | — | ||||||||||||||
Brazil | 3,549,752 | 3,549,752 | — | — | ||||||||||||||
Canada | 522,602 | 522,602 | — | — | ||||||||||||||
Cayman | 1,102,855 | 655,242 | 447,613 | — | ||||||||||||||
Chile | 520,275 | 520,275 | — | — | ||||||||||||||
China | 833,785 | — | 833,785 | — | ||||||||||||||
Colombia | 515,843 | 515,843 | — | — | ||||||||||||||
Denmark | 528,456 | — | 528,456 | — | ||||||||||||||
Egypt | 892,295 | — | 892,295 | — | ||||||||||||||
France | 342,658 | — | 342,658 | — | ||||||||||||||
Hong Kong | 4,627,354 | — | 4,627,354 | — | ||||||||||||||
India | 6,721,802 | 1,301,379 | 5,420,423 | — | ||||||||||||||
Indonesia | 1,356,140 | — | 1,356,140 | — | ||||||||||||||
Kenya | 35,400 | 35,400 | — | — | ||||||||||||||
Luxembourg | 606,268 | 606,268 | — | — | ||||||||||||||
Mexico | 4,918,084 | 4,918,084 | — | — | ||||||||||||||
Nigeria | 164,371 | 164,371 | — | — | ||||||||||||||
Norway | 202,230 | — | 202,230 | — | ||||||||||||||
Philippines | 1,670,561 | — | 1,670,561 | — | ||||||||||||||
Russia | 2,151,516 | — | 2,151,516 | — | ||||||||||||||
South Africa | 2,922,564 | 29,029 | 2,893,535 | — | ||||||||||||||
South Korea | 2,341,407 | — | 2,341,407 | — | ||||||||||||||
Taiwan | 3,139,835 | — | 3,139,835 | — | ||||||||||||||
Thailand | 122,768 | — | 122,768 | — | ||||||||||||||
Turkey | 1,557,093 | — | 1,557,093 | — | ||||||||||||||
United Arab Emirates | 365,206 | — | 365,206 | — | ||||||||||||||
United Kingdom | 3,483,338 | — | 3,483,338 | — | ||||||||||||||
United States | 444,250 | 444,250 | — | — | ||||||||||||||
46,032,525 | 13,656,312 | 32,376,213 | — | |||||||||||||||
Equity-Linked Structured Securities | 53,126 | — | 53,126 | — | ||||||||||||||
Short-Term Investment | 1,958,333 | 1,958,333 | — | — | ||||||||||||||
Total | $ | 52,106,808 | $ | 19,677,469 | $ | 32,429,339 | $ | — | ||||||||||
(1) | For equity securities categorized in a single level, refer to the schedule of investments for further geographical region breakout. |
See Notes to Financial Statements | A-48 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL INTERNATIONAL LARGE-CAP FUND
Schedule of Investments
September 30, 2010 (Unaudited)
PL INTERNATIONAL LARGE-CAP FUND
Schedule of Investments
September 30, 2010 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS — 98.6% | ||||||||
Austria — 0.4% | ||||||||
Erste Group Bank AG | 11,383 | $ | 457,402 | |||||
Bermuda — 2.0% | ||||||||
Esprit Holdings Ltd | 227,300 | 1,231,115 | ||||||
Li & Fung Ltd | 217,200 | 1,216,719 | ||||||
2,447,834 | ||||||||
Brazil — 0.7% | ||||||||
Banco Santander Brasil SA ADR | 57,090 | 786,129 | ||||||
Canada — 2.9% | ||||||||
Canadian National Railway Co | 55,140 | 3,530,063 | ||||||
Czech Republic — 0.7% | ||||||||
Komercni Banka AS | 3,738 | 810,717 | ||||||
France — 14.5% | ||||||||
Air Liquide SA | 20,412 | 2,496,506 | ||||||
AXA SA | 61,440 | 1,077,130 | ||||||
Danone SA | 29,725 | 1,781,506 | ||||||
Legrand SA | 23,430 | 792,794 | ||||||
LVMH Moet Hennessy Louis Vuitton SA | 30,880 | 4,535,614 | ||||||
Pernod-Ricard SA | 21,068 | 1,762,424 | ||||||
Schneider Electric SA | 30,443 | 3,867,547 | ||||||
Total SA | 20,000 | 1,033,419 | ||||||
17,346,940 | ||||||||
Germany — 11.2% | ||||||||
Bayer AG | 23,329 | 1,626,036 | ||||||
Beiersdorf AG | 32,780 | 2,006,465 | ||||||
Deutsche Boerse AG | 23,500 | 1,568,122 | ||||||
E.ON AG | 15,394 | 453,992 | ||||||
Linde AG | 36,200 | 4,708,641 | ||||||
MAN SE | 10,188 | 1,109,117 | ||||||
Merck KGaA | 11,730 | 985,006 | ||||||
SAP AG | 20,340 | 1,005,991 | ||||||
13,463,370 | ||||||||
Hong Kong — 1.2% | ||||||||
China Unicom Ltd | 376,000 | 549,844 | ||||||
CNOOC Ltd | 486,000 | 943,304 | ||||||
1,493,148 | ||||||||
India — 3.1% | ||||||||
ICICI Bank Ltd ADR | 33,190 | 1,654,522 | ||||||
Infosys Technologies Ltd ADR | 31,070 | 2,091,322 | ||||||
3,745,844 | ||||||||
Japan — 10.9% | ||||||||
Aeon Credit Service Co Ltd | 30,900 | 333,528 | ||||||
Canon Inc | 34,350 | 1,604,353 | ||||||
Denso Corp | 27,300 | 811,025 | ||||||
FANUC Ltd | 11,400 | 1,455,101 | ||||||
Hirose Electric Co Ltd | 2,700 | 272,622 | ||||||
HOYA Corp | 90,900 | 2,219,906 | ||||||
INPEX Corp | 347 | 1,632,322 | ||||||
Konica Minolta Holdings Inc | 63,000 | 617,499 | ||||||
Lawson Inc | 32,900 | 1,505,362 | ||||||
Nomura Holdings Inc | 129,900 | 624,945 | ||||||
Shin-Etsu Chemical Co Ltd | 40,000 | 1,951,887 | ||||||
13,028,550 | ||||||||
Mexico — 0.3% | ||||||||
America Movil SAB de CV ‘L’ ADR | 6,630 | 353,578 | ||||||
Netherlands — 10.5% | ||||||||
Akzo Nobel NV | 33,840 | 2,086,670 | ||||||
Heineken NV | 72,380 | 3,754,529 | ||||||
ING Groep NV CVA * | 202,590 | 2,100,989 | ||||||
Randstad Holding NV * | 31,180 | 1,416,658 | ||||||
TNT NV | 48,683 | 1,310,163 | ||||||
Wolters Kluwer NV | 90,190 | 1,895,386 | ||||||
12,564,395 | ||||||||
Singapore — 1.2% | ||||||||
Keppel Corp Ltd | 45,000 | 307,204 | ||||||
Singapore Telecommunications Ltd | 486,380 | 1,160,787 | ||||||
1,467,991 | ||||||||
South Africa — 0.9% | ||||||||
MTN Group Ltd | 59,170 | 1,068,633 | ||||||
South Korea — 1.4% | ||||||||
Samsung Electronics Co Ltd | 2,430 | 1,654,853 | ||||||
Spain — 0.9% | ||||||||
Banco Santander SA | 42,746 | 542,544 | ||||||
Red Electrica Corp SA | 10,145 | 477,775 | ||||||
1,020,319 | ||||||||
Sweden — 0.9% | ||||||||
Svenska Cellulosa AB ‘B’ | 66,800 | 1,018,068 | ||||||
Switzerland — 13.1% | ||||||||
Actelion Ltd * | 10,201 | 408,627 | ||||||
Cie Financiere Richemont SA ‘A’ | 44,634 | 2,153,540 | ||||||
Givaudan SA | 1,170 | 1,197,333 | ||||||
Julius Baer Group Ltd | 61,093 | 2,225,482 | ||||||
Nestle SA | 81,154 | 4,326,112 | ||||||
Roche Holding AG | 22,440 | 3,066,023 | ||||||
Sonova Holding AG | 4,898 | 598,764 | ||||||
Swiss Reinsurance Co Ltd | 17,105 | 750,325 | ||||||
UBS AG (XVTX) * | 58,869 | 1,002,288 | ||||||
15,728,494 | ||||||||
Taiwan — 1.2% | ||||||||
Taiwan Semiconductor Manufacturing Co Ltd ADR | 146,400 | 1,484,496 | ||||||
United Kingdom — 18.7% | ||||||||
BG Group PLC | 33,550 | 590,718 | ||||||
Burberry Group PLC | 61,930 | 1,013,620 | ||||||
Diageo PLC | 160,190 | 2,756,947 | ||||||
Hays PLC | 354,190 | 629,431 | ||||||
HSBC Holdings PLC (LI) | 354,889 | 3,590,031 | ||||||
Ladbrokes PLC | 112,787 | 237,766 | ||||||
Reckitt Benckiser Group PLC | 73,424 | 4,043,992 | ||||||
Royal Dutch Shell PLC ‘A’ (LI) | 60,340 | 1,818,327 | ||||||
Smiths Group PLC | 76,880 | 1,474,596 | ||||||
Standard Chartered PLC | 80,817 | 2,320,612 |
See Notes to Financial Statements | A-49 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL INTERNATIONAL LARGE-CAP FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL INTERNATIONAL LARGE-CAP FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
Shares | Value | |||||||
Tesco PLC | 265,717 | $ | 1,772,486 | |||||
William Hill PLC | 110,910 | 289,668 | ||||||
WPP PLC | 167,850 | 1,861,034 | ||||||
22,399,228 | ||||||||
United States — 1.9% | ||||||||
Synthes Inc | 20,000 | 2,314,894 | ||||||
Total Common Stocks (Cost $100,354,865) | 118,184,946 | |||||||
Principal | ||||||||
Amount | ||||||||
SHORT-TERM INVESTMENTS — 4.6% | ||||||||
Commercial Paper — 4.6% | ||||||||
General Electric Co 0.120% due 10/01/10 | $ | 2,404,000 | 2,404,000 | |||||
JPMorgan Chase & Co 0.010% due 10/01/10 | 3,133,000 | 3,133,000 | ||||||
5,537,000 | ||||||||
Shares | ||||||||
Money Market Fund — 0.0% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 14,760 | 14,760 | ||||||
Total Short-Term Investments (Cost $5,551,760) | 5,551,760 | |||||||
TOTAL INVESTMENTS — 103.2% (Cost $105,906,625) | 123,736,706 | |||||||
OTHER ASSETS & LIABILITIES, NET — (3.2%) | (3,801,051 | ) | ||||||
NET ASSETS — 100.0% | $ | 119,935,655 | ||||||
Notes to Schedule of Investments
(a) | As of September 30, 2010, the Fund was diversified as a percentage of net assets as follows: |
Consumer Staples | 19.8 | % | ||
Financials | 16.6 | % | ||
Industrials | 13.3 | % | ||
Consumer Discretionary | 12.7 | % | ||
Materials | 11.2 | % | ||
Information Technology | 9.1 | % | ||
Health Care | 7.5 | % | ||
Energy | 5.0 | % | ||
Short-Term Investments | 4.6 | % | ||
Telecommunication Services | 2.6 | % | ||
Utilities | 0.8 | % | ||
103.2 | % | |||
Other Assets & Liabilities, Net | (3.2 | %) | ||
100.0 | % | |||
(b) | As of September 30, 2010, the Fund was diversified by geographical region as a percentage of net assets as follows: |
United Kingdom | 18.7 | % | ||
France | 14.5 | % | ||
Switzerland | 13.1 | % | ||
Germany | 11.2 | % | ||
Japan | 10.9 | % | ||
Netherlands | 10.5 | % | ||
United States | 6.5 | % | ||
India | 3.1 | % | ||
Canada | 2.9 | % | ||
Bermuda | 2.0 | % | ||
South Korea | 1.4 | % | ||
Hong Kong | 1.2 | % | ||
Taiwan | 1.2 | % | ||
Singapore | 1.2 | % | ||
Others (each less than 1.0%) | 4.8 | % | ||
103.2 | % | |||
Other Assets & Liabilities, Net | (3.2 | %) | ||
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. |
See Notes to Financial Statements | A-50 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL INTERNATIONAL LARGE-CAP FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL INTERNATIONAL LARGE-CAP FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
(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 11 in Notes to Financial Statements) as of September 30, 2010: |
Level 2 | Level 3 | |||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||
September 30, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||
Assets | Common Stocks | |||||||||||||||||
Austria | $ | 457,402 | $ | — | $ | 457,402 | $ | — | ||||||||||
Bermuda | 2,447,834 | — | 2,447,834 | — | ||||||||||||||
Brazil | 786,129 | 786,129 | — | — | ||||||||||||||
Canada | 3,530,063 | 3,530,063 | — | — | ||||||||||||||
Czech Republic | 810,717 | — | 810,717 | — | ||||||||||||||
France | 17,346,940 | — | 17,346,940 | — | ||||||||||||||
Germany | 13,463,370 | 2,006,465 | 11,456,905 | — | ||||||||||||||
Hong Kong | 1,493,148 | — | 1,493,148 | — | ||||||||||||||
India | 3,745,844 | 3,745,844 | — | — | ||||||||||||||
Japan | 13,028,550 | — | 13,028,550 | — | ||||||||||||||
Mexico | 353,578 | 353,578 | — | — | ||||||||||||||
Netherlands | 12,564,395 | — | 12,564,395 | — | ||||||||||||||
Singapore | 1,467,991 | — | 1,467,991 | — | ||||||||||||||
South Africa | 1,068,633 | — | 1,068,633 | — | ||||||||||||||
South Korea | 1,654,853 | — | 1,654,853 | — | ||||||||||||||
Spain | 1,020,319 | — | 1,020,319 | — | ||||||||||||||
Sweden | 1,018,068 | — | 1,018,068 | |||||||||||||||
Switzerland | 15,728,494 | — | 15,728,494 | — | ||||||||||||||
Taiwan | 1,484,496 | 1,484,496 | — | — | ||||||||||||||
United Kingdom | 22,399,228 | — | 22,399,228 | — | ||||||||||||||
United States | 2,314,894 | — | 2,314,894 | — | ||||||||||||||
118,184,946 | 11,906,575 | 106,278,371 | — | |||||||||||||||
Short-Term Investments | 5,551,760 | 14,760 | 5,537,000 | — | ||||||||||||||
Total | $ | 123,736,706 | $ | 11,921,335 | $ | 111,815,371 | $ | — | ||||||||||
See Notes to Financial Statements | A-51 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL INTERNATIONAL VALUE FUND
Schedule of Investments
September 30, 2010 (Unaudited)
PL INTERNATIONAL VALUE FUND
Schedule of Investments
September 30, 2010 (Unaudited)
Shares | Value | |||||||
PREFERRED STOCKS — 0.7% | ||||||||
Brazil — 0.7% | ||||||||
Vale SA ADR | 21,000 | $ | 582,750 | |||||
Total Preferred Stocks (Cost $471,907) | 582,750 | |||||||
COMMON STOCKS — 96.0% | ||||||||
Australia — 4.2% | ||||||||
Australia & New Zealand Banking Group Ltd | 17,700 | 405,355 | ||||||
BHP Billiton Ltd | 11,800 | 449,785 | ||||||
Boral Ltd | 84,900 | 378,844 | ||||||
Challenger Financial Services Group Ltd | 55,600 | 227,882 | ||||||
Incitec Pivot Ltd | 145,742 | 507,327 | ||||||
National Australia Bank Ltd | 60,822 | 1,490,328 | ||||||
3,459,521 | ||||||||
Austria — 0.6% | ||||||||
OMV AG | 12,700 | 475,774 | ||||||
Belgium — 1.6% | ||||||||
Delhaize Group SA | 10,400 | 755,684 | ||||||
KBC Groep NV * | 12,000 | 538,624 | ||||||
1,294,308 | ||||||||
Bermuda — 1.3% | ||||||||
Esprit Holdings Ltd | 126,501 | 685,162 | ||||||
Noble Group Ltd | 281,272 | 404,233 | ||||||
1,089,395 | ||||||||
Canada — 5.0% | ||||||||
Agrium Inc | 9,400 | 705,297 | ||||||
Lundin Mining Corp * | 84,800 | 423,629 | ||||||
National Bank of Canada | 6,200 | 391,259 | ||||||
Nexen Inc | 44,077 | 886,766 | ||||||
Penn West Energy Trust | 34,674 | 694,895 | ||||||
Suncor Energy Inc | 19,912 | 648,316 | ||||||
The Toronto-Dominion Bank | 5,300 | 383,502 | ||||||
4,133,664 | ||||||||
Cayman — 0.1% | ||||||||
Evergrande Real Estate Group Ltd | 364,000 | 122,560 | ||||||
China — 0.7% | ||||||||
Bank of China Ltd ‘H’ | 508,000 | 265,384 | ||||||
China Petroleum & Chemical Corp ‘H’ | 332,000 | 292,918 | ||||||
558,302 | ||||||||
Denmark — 0.8% | ||||||||
Danske Bank AS * | 27,000 | 648,172 | ||||||
Finland — 0.4% | ||||||||
Cargotec OYJ ‘B’ | 6,900 | 298,739 | ||||||
France — 14.2% | ||||||||
Arkema SA | 8,000 | 408,789 | ||||||
BNP Paribas | 19,219 | 1,371,687 | ||||||
Bouygues SA | 28,900 | 1,245,114 | ||||||
Cap Gemini SA | 15,200 | 763,127 | ||||||
Casino Guichard-Perrachon SA | 2,934 | 268,846 | ||||||
Cie Generale de Geophysique-Veritas * | 15,500 | 340,018 | ||||||
Electricite de France SA | 18,200 | 785,630 | ||||||
France Telecom SA | 39,200 | 847,833 | ||||||
Lagardere SCA | 14,500 | 567,675 | ||||||
PPR | 3,800 | 616,512 | ||||||
Renault SA * | 16,000 | 824,650 | ||||||
Sanofi-Aventis SA | 18,101 | 1,204,909 | ||||||
Societe Generale | 13,627 | 787,954 | ||||||
Vallourec SA | 4,814 | 478,761 | ||||||
Vivendi SA | 45,560 | 1,248,724 | ||||||
11,760,229 | ||||||||
Germany — 9.2% | ||||||||
Allianz SE | 11,610 | 1,311,668 | ||||||
Bayer AG | 18,100 | 1,261,574 | ||||||
Bayerische Motoren Werke AG | 16,600 | 1,164,397 | ||||||
Deutsche Bank AG | 13,100 | 717,160 | ||||||
E.ON AG | 47,396 | 1,397,777 | ||||||
Muenchener Rueckversicherungs AG | 6,561 | 908,581 | ||||||
ThyssenKrupp AG | 26,400 | 860,732 | ||||||
7,621,889 | ||||||||
Hong Kong — 0.6% | ||||||||
New World Development Ltd | 260,688 | 523,675 | ||||||
Ireland — 0.3% | ||||||||
Smurfit Kappa Group PLC * | 21,700 | 218,024 | ||||||
Italy — 3.6% | ||||||||
ENI SPA | 41,089 | 887,826 | ||||||
Telecom Italia SPA | 542,500 | 759,971 | ||||||
Telecom Italia SPA RSP | 233,000 | 262,927 | ||||||
UniCredit SPA | 405,630 | 1,038,783 | ||||||
2,949,507 | ||||||||
Japan — 22.2% | ||||||||
Aeon Co Ltd | 27,300 | 292,685 | ||||||
Air Water Inc | 10,000 | 118,852 | ||||||
Asahi Breweries Ltd | 13,200 | 264,402 | ||||||
Asahi Glass Co Ltd | 56,000 | 571,124 | ||||||
DIC Corp | 114,000 | 201,259 | ||||||
Dowa Holdings Co Ltd | 35,000 | 208,419 | ||||||
East Japan Railway Co | 9,200 | 555,849 | ||||||
ITOCHU Corp | 60,000 | 549,174 | ||||||
Japan Tobacco Inc | 297 | 989,622 | ||||||
JFE Holdings Inc | 12,400 | 379,368 | ||||||
JX Holdings Inc * | 92,460 | 536,515 | ||||||
KDDI Corp | 95 | 454,163 | ||||||
Konami Corp | 10,800 | 190,668 | ||||||
Konica Minolta Holdings Inc | 40,500 | 396,964 | ||||||
Mitsubishi Corp | 39,200 | 931,357 | ||||||
Mitsubishi Materials Corp * | 142,000 | 408,306 | ||||||
Mitsubishi Tanabe Pharma Corp | 23,000 | 375,027 | ||||||
Mitsui & Co Ltd | 50,500 | 750,882 | ||||||
Mitsui Fudosan Co Ltd | 49,000 | 826,750 | ||||||
Namco Bandai Holdings Inc | 12,100 | 112,139 | ||||||
NGK Spark Plug Co Ltd | 27,000 | 361,656 | ||||||
Nippon Shokubai Co Ltd | 22,000 | 191,503 | ||||||
Nippon Telegraph & Telephone Corp | 22,500 | 985,551 | ||||||
Nissan Motor Co Ltd | 100,400 | 879,245 | ||||||
ORIX Corp | 9,810 | 750,837 | ||||||
Sharp Corp | 77,000 | 767,537 | ||||||
Sony Corp | 30,800 | 950,847 | ||||||
Sumitomo Electric Industries Ltd | 41,700 | 508,574 |
See Notes to Financial Statements | A-52 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL INTERNATIONAL VALUE FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL INTERNATIONAL VALUE FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
Shares | Value | |||||||
Sumitomo Mitsui Financial Group Inc | 25,300 | $ | 737,290 | |||||
Sumitomo Realty & Development Co Ltd | 21,000 | 434,652 | ||||||
The Tokyo Electric Power Co Inc | 35,100 | 857,303 | ||||||
Tokyo Gas Co Ltd | 117,000 | 532,115 | ||||||
Toshiba Corp | 211,000 | 1,020,398 | ||||||
Zeon Corp | 31,000 | 257,384 | ||||||
18,348,417 | ||||||||
Netherlands — 0.3% | ||||||||
Randstad Holding NV * | 4,600 | 209,000 | ||||||
New Zealand — 0.3% | ||||||||
Telecom Corp of New Zealand Ltd (ASX) | 191,460 | 286,973 | ||||||
Norway — 1.2% | ||||||||
DnB NOR ASA | 48,200 | 657,958 | ||||||
Petroleum Geo-Services ASA * | 26,150 | 299,901 | ||||||
957,859 | ||||||||
Poland — 0.4% | ||||||||
KGHM Polska Miedz SA | 7,300 | 293,654 | ||||||
Russia — 0.9% | ||||||||
Gazprom OAO ADR | 21,700 | 454,615 | ||||||
Lukoil OAO ADR | 5,150 | 292,005 | ||||||
746,620 | ||||||||
South Korea — 1.0% | ||||||||
KB Financial Group Inc ADR | 6,600 | 282,942 | ||||||
Samsung Electronics Co Ltd GDR ~ | 1,650 | 562,179 | ||||||
845,121 | ||||||||
Spain — 1.4% | ||||||||
Iberdrola SA | 1,307 | 10,078 | ||||||
Telefonica SA | 45,500 | 1,129,363 | ||||||
1,139,441 | ||||||||
Sweden — 0.6% | ||||||||
Electrolux AB ‘B’ | 21,700 | 534,991 | ||||||
Switzerland — 2.0% | ||||||||
Novartis AG | 28,927 | 1,664,979 | ||||||
Taiwan — 0.5% | ||||||||
AU Optronics Corp ADR * | 42,100 | 440,366 | ||||||
United Kingdom — 22.6% | ||||||||
AstraZeneca PLC | 29,922 | 1,518,850 | ||||||
Aviva PLC | 123,900 | 776,662 | ||||||
BAE Systems PLC | 158,900 | 855,675 | ||||||
Barclays PLC | 217,483 | 1,022,230 | ||||||
BP PLC | 259,498 | 1,775,497 | ||||||
British American Tobacco PLC | 21,300 | 795,462 | ||||||
FirstGroup PLC | 53,500 | 305,117 | ||||||
Imperial Tobacco Group PLC | 26,800 | 799,460 | ||||||
Inchcape PLC * | 41,230 | 202,172 | ||||||
Kazakhmys PLC | 24,700 | 563,473 | ||||||
Marks & Spencer Group PLC | 133,900 | 817,890 | ||||||
Old Mutual PLC | 280,500 | 612,174 | ||||||
Premier Foods PLC * | 310,100 | 79,445 | ||||||
Rentokil Initial PLC * | 219,300 | 354,970 | ||||||
Rio Tinto PLC | 30,800 | 1,804,363 | ||||||
Royal Dutch Shell PLC ‘A’ (XAMS) | 76,735 | 2,322,580 | ||||||
Thomas Cook Group PLC | 93,500 | 252,729 | ||||||
TUI Travel PLC | 93,400 | 314,621 | ||||||
Vodafone Group PLC | 695,171 | 1,715,229 | ||||||
Xstrata PLC | 94,660 | 1,813,235 | ||||||
18,701,834 | ||||||||
Total Common Stocks (Cost $76,593,726) | 79,323,014 | |||||||
SHORT-TERM INVESTMENT — 3.3% | ||||||||
Money Market Fund — 3.3% | ||||||||
BlackRock Liquidity Funds Treasury | ||||||||
Trust Fund Portfolio | 2,751,043 | 2,751,043 | ||||||
Total Short-Term Investment (Cost $2,751,043) | 2,751,043 | |||||||
TOTAL INVESTMENTS — 100.0% (Cost $79,816,676) | 82,656,807 | |||||||
OTHER ASSETS & LIABILITIES, NET — 0.0% | 12,989 | |||||||
NET ASSETS — 100.00% | $ | 82,669,796 | ||||||
Notes to Schedule of Investments
(a) | As of September 30, 2010, the Fund was diversified as a percentage of net assets as follows: |
Financials | 20.8 | % | ||
Materials | 13.0 | % | ||
Consumer Discretionary | 12.6 | % | ||
Energy | 12.0 | % | ||
Industrials | 9.7 | % | ||
Telecommunication Services | 7.8 | % | ||
Health Care | 7.3 | % | ||
Consumer Staples | 5.1 | % | ||
Utilities | 4.3 | % | ||
Information Technology | 4.1 | % | ||
Short-Term Investment | 3.3 | % | ||
100.0 | % | |||
Other Assets & Liabilities, Net | 0.0 | % | ||
100.0 | % | |||
See Notes to Financial Statements | A-53 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL INTERNATIONAL VALUE FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL INTERNATIONAL VALUE FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
(b) | As of September 30, 2010, the Fund was diversified by geographical region as a percentage of net assets as follows: |
United Kingdom | 22.6 | % | ||
Japan | 22.2 | % | ||
France | 14.2 | % | ||
Germany | 9.2 | % | ||
Canada | 5.0 | % | ||
Australia | 4.2 | % | ||
Italy | 3.6 | % | ||
United States | 3.3 | % | ||
Switzerland | 2.0 | % | ||
Belgium | 1.6 | % | ||
Spain | 1.4 | % | ||
Bermuda | 1.3 | % | ||
Norway | 1.2 | % | ||
South Korea | 1.0 | % | ||
Others (each less than 1.0%) | 7.2 | % | ||
100.0 | % | |||
Other Assets & Liabilities, Net | 0.0 | % | ||
100.0 | % | |||
(c) | Open futures contracts outstanding as of September 30, 2010 were as follows: |
Net | ||||||||||||
Number of | Notional | Unrealized | ||||||||||
Long Futures Outstanding | Contracts | Amount | Depreciation | |||||||||
Dow Jones EURO STOXX 50 (12/10) | 10 | EUR | 280,000 | $ | (8,469 | ) | ||||||
(d) | As of September 30, 2010, $220,462 in cash was segregated with the broker(s)/custodian for open futures contracts. |
(e) | Forward foreign currency contracts outstanding as of September 30, 2010 were as follows: |
Principal | ||||||||||||||
Contracts | Amount | Unrealized | ||||||||||||
to Buy or | Covered by | Appreciation | ||||||||||||
to Sell | Currency | Contracts | Expiration | Counterparty | (Depreciation) | |||||||||
Buy | CAD | 236,000 | 12/10 | GSC | $ | 44 | ||||||||
Sell | CAD | 2,701,000 | 12/10 | GSC | (17,426 | ) | ||||||||
$ | (17,382 | ) | ||||||||||||
See Notes to Financial Statements | A-54 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
PL INTERNATIONAL VALUE FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
PL INTERNATIONAL VALUE FUND
Schedule of Investments (Continued)
September 30, 2010 (Unaudited)
(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 11 in Notes to Financial Statements) as of September 30, 2010: |
Level 2 | Level 3 | |||||||||||||||||
Total Value at | Level 1 | Significant | Significant | |||||||||||||||
September 30, 2010 | Quoted Price | Observable Inputs | Unobservable Inputs | |||||||||||||||
Assets | Preferred Stocks (1) | $ | 582,750 | $ | 582,750 | $ | — | $ | — | |||||||||
Common Stocks | ||||||||||||||||||
Australia | 3,459,521 | — | 3,459,521 | — | ||||||||||||||
Austria | 475,774 | — | 475,774 | — | ||||||||||||||
Belgium | 1,294,308 | — | 1,294,308 | — | ||||||||||||||
Bermuda | 1,089,395 | — | 1,089,395 | — | ||||||||||||||
Canada | 4,133,664 | 4,133,664 | — | — | ||||||||||||||
Cayman Islands | 122,560 | — | 122,560 | — | ||||||||||||||
China | 558,302 | — | 558,302 | — | ||||||||||||||
Denmark | 648,172 | — | 648,172 | — | ||||||||||||||
Finland | 298,739 | — | 298,739 | — | ||||||||||||||
France | 11,760,229 | — | 11,760,229 | — | ||||||||||||||
Germany | 7,621,889 | — | 7,621,889 | — | ||||||||||||||
Hong Kong | 523,675 | — | 523,675 | — | ||||||||||||||
Ireland | 218,024 | 218,024 | — | — | ||||||||||||||
Italy | 2,949,507 | — | 2,949,507 | — | ||||||||||||||
Japan | 18,348,417 | — | 18,348,417 | — | ||||||||||||||
Netherlands | 209,000 | — | 209,000 | — | ||||||||||||||
New Zealand | 286,973 | — | 286,973 | — | ||||||||||||||
Norway | 957,859 | — | 957,859 | — | ||||||||||||||
Poland | 293,654 | — | 293,654 | — | ||||||||||||||
Russia | 746,620 | 746,620 | — | — | ||||||||||||||
South Korea | 845,121 | 845,121 | — | — | ||||||||||||||
Spain | 1,139,441 | — | 1,139,441 | — | ||||||||||||||
Sweden | 534,991 | — | 534,991 | — | ||||||||||||||
Switzerland | 1,664,979 | — | 1,664,979 | — | ||||||||||||||
Taiwan | 440,366 | 440,366 | — | — | ||||||||||||||
United Kingdom | 18,701,834 | — | 18,701,834 | — | ||||||||||||||
79,323,014 | 6,383,795 | 72,939,219 | — | |||||||||||||||
Short-Term Investment | 2,751,043 | 2,751,043 | — | — | ||||||||||||||
Derivatives (2) | ||||||||||||||||||
Foreign Exchange Contracts | 44 | — | 44 | — | ||||||||||||||
82,656,851 | 9,717,588 | 72,939,263 | — | |||||||||||||||
Liabilities | Derivatives (2) | |||||||||||||||||
Equity Contracts | (8,469 | ) | (8,469 | ) | — | — | ||||||||||||
Foreign Exchange Contracts | (17,426 | ) | — | (17,426 | ) | — | ||||||||||||
(25,895 | ) | (8,469 | ) | (17,426 | ) | — | ||||||||||||
Total | $ | 82,630,956 | $ | 9,709,119 | $ | 72,921,837 | $ | — | ||||||||||
(1) | For equity securities categorized in a single level, refer to the schedule of investments for further geographical region breakout. | |
(2) | Investments in derivatives include open futures contracts, and forward foreign currency contracts. |
See Notes to Financial Statements | A-55 | See explanation of symbols and terms, if any, on page A-56 |
PACIFIC LIFE FUNDS
Schedule of Investments (Continued)
Explanation of Symbols and Terms
September 30, 2010 (Unaudited)
Schedule of Investments (Continued)
Explanation of Symbols and Terms
September 30, 2010 (Unaudited)
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 September 30, 2010. | |
Ω | Securities were in default as of September 30, 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 or 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 September 30, 2010. | |
Δ | Illiquid holdings. Holdings were reported as illiquid by the portfolio manager or adviser pursuant to the Trust’s policy and procedures (See Note 2F in Notes to Financial Statements). | |
+ | The fair values of these holdings were determined by the Board of Trustees (“Board”), a Board approved valuation committee, or a delegate of the Board in good faith in accordance with the procedures established by the Board and the provisions of the Investment Company Act of 1940 (See Note 2A in Notes to Financial Statements). | |
Counterparty Abbreviations: | ||
BOA | Bank of America | |
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 | |
RBC | Royal Bank of Canada | |
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 | |
INR | Indian Rupee | |
JPY | Japanese Yen | |
KRW | Korean Won | |
MXN | Mexican Peso | |
MYR | Malaysian Ringitt | |
PHP | Philippine Peso | |
SGD | Singapore Dollar | |
TRY | Turkish Lira | |
TWD | Taiwan Dollar | |
USD | United States Dollar | |
ZAR | South African Rand | |
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 | |
RSP | Riparmio shares (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 schedules of investments were obtained from published reports and other sources believed to be reliable.
See Notes to Financial Statements | A-56 |
PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2010 (Unaudited)
PL Floating | PL Inflation | PL Managed | PL Short Duration | PL Large-Cap | ||||||||||||||||||||||||
Rate Loan | Managed | Bond | Bond | PL Comstock | PL Growth LT | Growth | ||||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Investments and repurchase agreements, at cost | $ | 70,542,299 | $ | 214,607,856 | $ | 344,670,320 | $ | 93,938,645 | $ | 126,287,004 | $ | 81,151,782 | $ | 73,310,530 | ||||||||||||||
Investments, at value | $ | 71,074,039 | $ | 222,335,940 | $ | 316,372,180 | $ | 89,893,637 | $ | 139,350,753 | $ | 98,679,933 | $ | 86,487,189 | ||||||||||||||
Repurchase agreements, at value | — | — | 35,300,000 | 5,100,000 | — | — | — | |||||||||||||||||||||
Cash (1) | 44,238 | 17,700 | — | — | — | — | — | |||||||||||||||||||||
Foreign currency held, at value (2) | — | 163,881 | 201,702 | — | — | — | — | |||||||||||||||||||||
Receivables: | ||||||||||||||||||||||||||||
Dividends and interest | 153,433 | 1,108,660 | 1,779,332 | 453,212 | 214,370 | 130,814 | 42,857 | |||||||||||||||||||||
Foreign tax reclaim | — | — | — | — | — | 29,035 | — | |||||||||||||||||||||
Fund shares sold | 136,147 | — | 286,011 | — | 289,842 | 89,405 | 63,968 | |||||||||||||||||||||
Securities sold | 973,944 | 488,895 | 4,411,992 | 2,011,199 | 36,803 | 401,084 | 1,320,731 | |||||||||||||||||||||
Variation margin | — | — | 2,771 | 7,311 | — | — | — | |||||||||||||||||||||
Due from adviser | 8,485 | 28,983 | 46,063 | 14,026 | 14,527 | 12,178 | 7,675 | |||||||||||||||||||||
Forward foreign currency contracts appreciation | — | 134,313 | 830,249 | — | — | 14,691 | — | |||||||||||||||||||||
Prepaid expenses and other assets | 483 | 1,570 | 2,406 | 711 | 1,485 | 1,039 | 3,173 | |||||||||||||||||||||
Swap contracts, at value | — | 381,356 | 1,651,544 | — | — | — | — | |||||||||||||||||||||
Total Assets | 72,390,769 | 224,661,298 | 360,884,250 | 97,480,096 | 139,907,780 | 99,358,179 | 87,925,593 | |||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||||||
Due to brokers (3) | — | — | 800,000 | — | — | — | — | |||||||||||||||||||||
Fund shares redeemed | — | 43,160 | 112,864 | 154 | — | — | — | |||||||||||||||||||||
Securities purchased | 4,800,622 | 46,067,597 | 59,463,110 | 6,748,449 | 213,871 | 228,938 | 1,424,397 | |||||||||||||||||||||
Variation margin | — | 400 | — | — | — | — | — | |||||||||||||||||||||
Accrued advisory fees | 35,378 | 58,753 | 97,485 | 30,432 | 82,668 | 42,993 | 48,988 | |||||||||||||||||||||
Accrued administration fees | 8,164 | 22,032 | 36,557 | 11,412 | 16,534 | 11,725 | 10,135 | |||||||||||||||||||||
Accrued support service expenses | 1,390 | 10,879 | 19,332 | 6,248 | 6,758 | 5,859 | 4,732 | |||||||||||||||||||||
Accrued custodian fees and expenses | 3,554 | 5,851 | 22,053 | 3,941 | 7,105 | 9,661 | 4,573 | |||||||||||||||||||||
Accrued legal, audit and tax service fees | 6,335 | 25,002 | 40,075 | 12,771 | 18,491 | 14,004 | 9,222 | |||||||||||||||||||||
Accrued deferred trustee compensation and expenses | 124 | 2,544 | 8,423 | 1,260 | 3,324 | 3,257 | 6,222 | |||||||||||||||||||||
Accrued transfer agency out-of-pocket expenses | 4,349 | 12,568 | 20,228 | 6,569 | 9,297 | 6,598 | 4,422 | |||||||||||||||||||||
Accrued other | 898 | 11,221 | 18,175 | 11,596 | 6,158 | 3,627 | 2,185 | |||||||||||||||||||||
Forward foreign currency contracts depreciation | — | 498,735 | 731,654 | — | — | 97,196 | — | |||||||||||||||||||||
Outstanding options written, at value (premiums received $330,725 and $725,205, respectively) | — | 214,757 | 806,835 | — | — | — | — | |||||||||||||||||||||
Swap contracts, at value | — | 76,882 | 402,145 | — | — | — | — | |||||||||||||||||||||
Total Liabilities | 4,860,814 | 47,050,381 | 62,578,936 | 6,832,832 | 364,206 | 423,858 | 1,514,876 | |||||||||||||||||||||
NET ASSETS | $ | 67,529,955 | $ | 177,610,917 | $ | 298,305,314 | $ | 90,647,264 | $ | 139,543,574 | $ | 98,934,321 | $ | 86,410,717 | ||||||||||||||
(1) | Includes margin deposits of $17,700 segregated for futures contracts in the PL Inflation Managed Fund. | |
(2) | The cost of foreign currency for the PL Inflation Managed Fund and the PL Managed Bond Funds were $161,047 and $201,924, 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 12 in Notes to Financial Statements). |
See Notes to Financial Statements
B-1
PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
SEPTEMBER 30, 2010 (Unaudited)
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
SEPTEMBER 30, 2010 (Unaudited)
PL Floating | PL Inflation | PL Managed | PL Short Duration | PL Large-Cap | ||||||||||||||||||||||||
Rate Loan | Managed | Bond | Bond | PL Comstock | PL Growth LT | Growth | ||||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||||||||||||||
Paid-in capital | $ | 67,328,417 | $ | 169,519,794 | $ | 280,165,411 | $ | 89,129,291 | $ | 164,063,599 | $ | 109,563,067 | $ | 79,000,083 | ||||||||||||||
Undistributed/accumulated net investment income (loss) | 701,342 | 542,562 | 927,925 | 249,007 | 709,502 | 112,390 | (31,582 | ) | ||||||||||||||||||||
Undistributed/accumulated net realized gain (loss) | (1,031,544 | ) | (279,474 | ) | 8,793,843 | 208,578 | (38,293,276 | ) | (28,190,658 | ) | (5,734,443 | ) | ||||||||||||||||
Net unrealized appreciation on investments and assets and liabilities in foreign currencies | 531,740 | 7,828,035 | 8,418,135 | 1,060,388 | 13,063,749 | 17,449,522 | 13,176,659 | |||||||||||||||||||||
NET ASSETS | $ | 67,529,955 | $ | 177,610,917 | $ | 298,305,314 | $ | 90,647,264 | $ | 139,543,574 | $ | 98,934,321 | $ | 86,410,717 | ||||||||||||||
Class P Shares: | ||||||||||||||||||||||||||||
Net Assets | $ | 67,529,955 | $ | 177,610,917 | $ | 298,305,314 | $ | 90,647,264 | $ | 139,543,574 | $ | 98,934,321 | $ | 86,410,717 | ||||||||||||||
Shares of beneficial interest outstanding | 6,850,635 | 16,540,769 | 26,583,268 | 8,963,756 | 13,400,942 | 8,929,791 | 11,083,643 | |||||||||||||||||||||
Net Asset Value and offering price per share | $ | 9.86 | $ | 10.74 | $ | 11.22 | $ | 10.11 | $ | 10.41 | $ | 11.08 | $ | 7.80 |
See Notes to Financial Statements
B-2
PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
SEPTEMBER 30, 2010 (Unaudited)
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
SEPTEMBER 30, 2010 (Unaudited)
PL Large-Cap | PL Main Street | PL Mid-Cap | PL Mid-Cap | PL Small-Cap | PL Small-Cap | |||||||||||||||||||||||
Value | Core | Equity | Growth | Growth | Value | PL Real Estate | ||||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Investments, at cost | $ | 178,491,614 | $ | 115,605,767 | $ | 99,859,966 | $ | 38,228,440 | $ | 22,525,772 | $ | 55,949,594 | $ | 24,597,447 | ||||||||||||||
Investments, at value | $ | 192,325,373 | $ | 132,670,472 | $ | 116,126,017 | $ | 52,078,464 | $ | 28,778,425 | $ | 63,144,172 | $ | 36,200,239 | ||||||||||||||
Receivables: | ||||||||||||||||||||||||||||
Dividends and interest | 308,350 | 174,420 | 32,929 | 25,096 | 3,360 | 87,429 | 81,219 | |||||||||||||||||||||
Foreign tax reclaim | 17,254 | — | — | — | — | — | — | |||||||||||||||||||||
Fund shares sold | 506,637 | 241,842 | 245,066 | 8,796 | 25,209 | 83,778 | 40,843 | |||||||||||||||||||||
Securities sold | — | 340,257 | 1,913,257 | 1,886,342 | 363,558 | 95,425 | 2,568 | |||||||||||||||||||||
Due from adviser | 16,907 | 19,617 | 11,476 | 7,600 | 5,006 | 5,464 | 5,356 | |||||||||||||||||||||
Prepaid expenses and other assets | 1,878 | 1,665 | 1,184 | 667 | 2,802 | 452 | 473 | |||||||||||||||||||||
Total Assets | 193,176,399 | 133,448,273 | 118,329,929 | 54,006,965 | 29,178,360 | 63,416,720 | 36,330,698 | |||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||||||
Fund shares redeemed | — | — | 14,426 | 41,105 | — | 5,796 | — | |||||||||||||||||||||
Securities purchased | 2,921,959 | — | 1,182,881 | 1,266,194 | 536,315 | 366,178 | 294,264 | |||||||||||||||||||||
Income distributions | — | — | — | — | — | — | 38 | |||||||||||||||||||||
Accrued advisory fees | 97,553 | 47,404 | 59,792 | 29,341 | 13,265 | 37,282 | 26,052 | |||||||||||||||||||||
Accrued administration fees | 22,512 | 15,801 | 13,798 | 6,288 | 3,316 | 7,456 | 4,342 | |||||||||||||||||||||
Accrued support service expenses | 8,846 | 11,071 | 7,739 | 4,153 | — | 2,606 | 2,419 | |||||||||||||||||||||
Accrued custodian fees and expenses | 4,125 | 19,964 | 4,753 | 6,040 | 7,045 | 4,516 | 5,023 | |||||||||||||||||||||
Accrued legal, audit and tax service fees | 25,053 | 22,234 | 15,735 | 8,120 | 3,836 | 5,424 | 4,840 | |||||||||||||||||||||
Accrued deferred trustee compensation and expenses | 4,571 | 1,471 | 961 | 3,245 | 1,975 | — | 467 | |||||||||||||||||||||
Accrued transfer agency out-of-pocket expenses | 11,690 | 10,352 | 7,214 | 4,252 | 1,720 | 2,640 | 2,423 | |||||||||||||||||||||
Accrued other | 7,805 | 6,562 | 5,242 | 3,077 | 1,974 | 2,011 | 2,164 | |||||||||||||||||||||
Total Liabilities | 3,104,114 | 134,859 | 1,312,541 | 1,371,815 | 569,446 | 433,909 | 342,032 | |||||||||||||||||||||
NET ASSETS | $ | 190,072,285 | $ | 133,313,414 | $ | 117,017,388 | $ | 52,635,150 | $ | 28,608,914 | $ | 62,982,811 | $ | 35,988,666 | ||||||||||||||
See Notes to Financial Statements
B-3
PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
SEPTEMBER 30, 2010 (Unaudited)
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
SEPTEMBER 30, 2010 (Unaudited)
PL Large-Cap | PL Main Street | PL Mid-Cap | PL Mid-Cap | PL Small-Cap | PL Small-Cap | |||||||||||||||||||||||
Value | Core | Equity | Growth | Growth | Value | PL Real Estate | ||||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||||||||||||||
Paid-in capital | $ | 192,851,603 | $ | 151,011,875 | $ | 125,120,914 | $ | 36,184,803 | $ | 33,583,229 | $ | 64,380,385 | $ | 37,408,217 | ||||||||||||||
Undistributed/accumulated net investment income (loss) | 1,173,017 | 562,241 | 612,808 | 80,499 | (90,937 | ) | 442,695 | 117,848 | ||||||||||||||||||||
Undistributed/accumulated net realized gain (loss) | (17,788,094 | ) | (35,325,407 | ) | (24,982,385 | ) | 2,519,656 | (11,136,031 | ) | (9,034,771 | ) | (13,140,191 | ) | |||||||||||||||
Net unrealized appreciation on investments and assets and liabilities in foreign currencies | 13,835,759 | 17,064,705 | 16,266,051 | 13,850,192 | 6,252,653 | 7,194,502 | 11,602,792 | |||||||||||||||||||||
NET ASSETS | $ | 190,072,285 | $ | 133,313,414 | $ | 117,017,388 | $ | 52,635,150 | $ | 28,608,914 | $ | 62,982,811 | $ | 35,988,666 | ||||||||||||||
Class P Shares: | ||||||||||||||||||||||||||||
Net Assets | $ | 190,072,285 | $ | 133,313,414 | $ | 117,017,388 | $ | 52,635,150 | $ | 28,608,914 | $ | 62,982,811 | $ | 35,988,666 | ||||||||||||||
Shares of beneficial interest outstanding | 18,935,523 | 14,888,831 | 13,155,485 | 5,656,788 | 2,983,870 | 7,123,659 | 3,573,973 | |||||||||||||||||||||
Net Asset Value and offering price per share | $ | 10.04 | $ | 8.95 | $ | 8.89 | $ | 9.30 | $ | 9.59 | $ | 8.84 | $ | 10.07 |
See Notes to Financial Statements
B-4
PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
SEPTEMBER 30, 2010 (Unaudited)
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
SEPTEMBER 30, 2010 (Unaudited)
PL Emerging | PLInternational | PL International | ||||||||||
Markets | Large-Cap | Value | ||||||||||
Fund | Fund | Fund | ||||||||||
ASSETS | ||||||||||||
Investments, at cost | $ | 32,483,893 | $ | 105,906,625 | $ | 79,816,676 | ||||||
Investments, at value | $ | 52,106,808 | $ | 123,736,706 | $ | 82,656,807 | ||||||
Cash (1) | — | — | 173,881 | |||||||||
Foreign currency held, at value (1), (2) | 298,918 | 329 | 93,777 | |||||||||
Receivables: | ||||||||||||
Dividends and interest | 49,612 | 288,529 | 257,933 | |||||||||
Foreign tax reclaim | 509 | 194,528 | 125,923 | |||||||||
Fund shares sold | 73,141 | 260,038 | 228,336 | |||||||||
Securities sold | 451,000 | — | 605,804 | |||||||||
Due from adviser | 22,969 | 19,885 | 16,176 | |||||||||
Forward foreign currency contracts appreciation | — | — | 44 | |||||||||
Prepaid expenses and other assets | 570 | 3,029 | 1,106 | |||||||||
Total Assets | 53,003,527 | 124,503,044 | 84,159,787 | |||||||||
LIABILITIES | ||||||||||||
Payables: | ||||||||||||
Fund shares redeemed | — | — | 397 | |||||||||
Securities purchased | 287,756 | 4,418,384 | 1,357,677 | |||||||||
Variation margin | — | — | 8,452 | |||||||||
Deferred foreign capital gains tax | 9,358 | — | — | |||||||||
Accrued advisory fees | 32,115 | 79,340 | 41,666 | |||||||||
Accrued administration fees | 6,022 | 14,001 | 9,615 | |||||||||
Accrued support service expenses | 2,634 | — | 5,741 | |||||||||
Accrued custodian fees and expenses | 47,881 | 24,010 | 21,204 | |||||||||
Accrued legal, audit and tax service fees | 7,214 | 15,928 | 12,807 | |||||||||
Accrued deferred trustee compensation and expenses | 769 | 2,623 | 3,856 | |||||||||
Accrued transfer agency out-of-pocket expenses | 3,373 | 7,290 | 5,838 | |||||||||
Accrued other | 6,116 | 5,813 | 5,312 | |||||||||
Forward foreign currency contracts depreciation | — | — | 17,426 | |||||||||
Total Liabilities | 403,238 | 4,567,389 | 1,489,991 | |||||||||
NET ASSETS | $ | 52,600,289 | $ | 119,935,655 | $ | 82,669,796 | ||||||
(1) | Includes margin deposits of $220,462 held as collateral for futures contracts in the PL International Value Fund. | |
(2) | The cost of foreign currency for the PL Emerging Markets Fund, the PL International Large-Cap Fund and the PL International Value Fund was $297,807, $330 and $90,790 respectively. |
See Notes to Financial Statements
B-5
PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
SEPTEMBER 30, 2010 (Unaudited)
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
SEPTEMBER 30, 2010 (Unaudited)
PL Emerging | PL International | PL International | ||||||||||
Markets | Large-Cap | Value | ||||||||||
Fund | Fund | Fund | ||||||||||
NET ASSETS CONSIST OF: | ||||||||||||
Paid-in capital | $ | 37,363,500 | $ | 117,955,655 | $ | 129,512,590 | ||||||
Undistributed net investment income | 349,238 | 942,104 | 902,047 | |||||||||
Accumulated net realized loss | (4,726,584 | ) | (16,812,156 | ) | (50,570,725 | ) | ||||||
Net unrealized appreciation on investments and assets and liabilities in foreign currencies | 19,614,135 | 17,850,052 | 2,825,884 | |||||||||
NET ASSETS | $ | 52,600,289 | $ | 119,935,655 | $ | 82,669,796 | ||||||
Class P Shares: | ||||||||||||
Net Assets | $ | 52,600,289 | $ | 119,935,655 | $ | 82,669,796 | ||||||
Shares of beneficial interest outstanding | 3,812,634 | 8,617,136 | 9,290,613 | |||||||||
Net Asset Value and offering price per share | $ | 13.80 | $ | 13.92 | $ | 8.90 |
See Notes to Financial Statements
B-6
PACIFIC LIFE FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2010 (Unaudited)
PL Floating | PL Inflation | PL Managed | PL Short Duration | PL Large-Cap | ||||||||||||||||||||||||
Rate Loan | Managed | Bond | Bond | PL Comstock | PL Growth LT | Growth | ||||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||||||||||
Dividends, net of foreign taxes withheld | $ | 191 | $ | 3,756 | $ | 138,969 | $ | 95 | $ | 1,411,803 | $ | 636,058 | $ | 330,123 | ||||||||||||||
Interest, net of foreign taxes withheld | 1,585,378 | 2,540,455 | 3,876,607 | 790,573 | 1,632 | 3,142 | — | |||||||||||||||||||||
Total Investment Income | 1,585,569 | 2,544,211 | 4,015,576 | 790,668 | 1,413,435 | 639,200 | 330,123 | |||||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||||||
Advisory fees | 226,470 | 338,544 | 548,071 | 175,665 | 479,235 | 247,321 | 253,506 | |||||||||||||||||||||
Administration fees | 66,515 | 187,730 | 302,277 | 97,297 | 142,954 | 100,556 | 73,112 | |||||||||||||||||||||
Support services expenses | 9,292 | 26,284 | 42,480 | 13,543 | 20,438 | 14,598 | 9,556 | |||||||||||||||||||||
Custodian fees and expenses | 10,165 | 24,369 | 51,330 | 11,400 | 13,378 | 18,632 | 9,906 | |||||||||||||||||||||
Shareholder report expenses | 3,366 | 9,521 | 15,387 | 4,905 | 7,402 | 5,287 | 3,461 | |||||||||||||||||||||
Service fees | 35,367 | 101,347 | 161,350 | 52,373 | 78,546 | 55,205 | 37,381 | |||||||||||||||||||||
Transfer agency out-of-pocket expenses | 9,321 | 26,812 | 42,813 | 13,614 | 20,843 | 14,886 | 9,790 | |||||||||||||||||||||
Registration fees | 571 | 9,106 | 10,100 | 8,465 | 9,091 | 8,382 | 8,076 | |||||||||||||||||||||
Legal, audit and tax service fees | 8,132 | 23,003 | 37,178 | 11,852 | 17,887 | 12,776 | 8,363 | |||||||||||||||||||||
Trustees’ compensation and expenses | 1,268 | 3,668 | 5,886 | 1,915 | 2,821 | 2,020 | 1,367 | |||||||||||||||||||||
Interest on securities sold short | — | 96 | — | — | — | — | — | |||||||||||||||||||||
Other | 6,996 | 51,331 | 74,791 | 26,429 | 8,428 | 7,791 | 4,469 | |||||||||||||||||||||
Total Expenses | 377,463 | 801,811 | 1,291,663 | 417,458 | 801,023 | 487,454 | 418,987 | |||||||||||||||||||||
Advisory Fee Waiver | (16,049 | ) | — | — | — | — | — | (8,450 | ) | |||||||||||||||||||
Adviser Reimbursement | (49,111 | ) | (174,094 | ) | (279,965 | ) | (92,123 | ) | (100,288 | ) | (84,372 | ) | (54,988 | ) | ||||||||||||||
Net Expenses | 312,303 | 627,717 | 1,011,698 | 325,335 | 700,735 | 403,082 | 355,549 | |||||||||||||||||||||
NET INVESTMENT INCOME (LOSS) | 1,273,266 | 1,916,494 | 3,003,878 | 465,333 | 712,700 | 236,118 | (25,426 | ) | ||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||||||||||
Net Realized Gain (Loss) On: | ||||||||||||||||||||||||||||
Investment security transactions | 115,816 | 6,236,135 | 3,441,039 | 360,270 | 219,705 | (83,858 | ) | 774,815 | ||||||||||||||||||||
Closed short positions | — | 1,489 | (89,766 | ) | — | — | — | — | ||||||||||||||||||||
Futures contracts and swap transactions | — | 15,229 | 5,021,755 | (19,264 | ) | — | — | — | ||||||||||||||||||||
Written option transactions | — | 415,094 | 746,299 | — | — | — | — | |||||||||||||||||||||
Foreign currency transactions | — | 391,091 | 48,331 | — | — | 139,409 | — | |||||||||||||||||||||
Net Realized Gain | 115,816 | 7,059,038 | 9,167,658 | 341,006 | 219,705 | 55,551 | 774,815 | |||||||||||||||||||||
Net Change In Unrealized Appreciation (Depreciation) On: | ||||||||||||||||||||||||||||
Investment securities | (748,859 | ) | 4,236,099 | 7,012,672 | 446,836 | (3,608,297 | ) | (736,347 | ) | 1,708,631 | ||||||||||||||||||
Futures contracts and swaps | — | 40,659 | (1,395,967 | ) | (11,538 | ) | — | — | — | |||||||||||||||||||
Written options | — | (195,672 | ) | (576,711 | ) | — | — | — | — | |||||||||||||||||||
Foreign currencies | — | (674,745 | ) | (38,541 | ) | — | — | (200,746 | ) | — | ||||||||||||||||||
Change in Net Unrealized Appreciation (Depreciation) | (748,859 | ) | 3,406,341 | 5,001,453 | 435,298 | (3,608,297 | ) | (937,093 | ) | 1,708,631 | ||||||||||||||||||
NET GAIN (LOSS) | (633,043 | ) | 10,465,379 | 14,169,111 | 776,304 | (3,388,592 | ) | (881,542 | ) | 2,483,446 | ||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 640,223 | $ | 12,381,873 | $ | 17,172,989 | $ | 1,241,637 | $ | (2,675,892 | ) | $ | (645,424 | ) | $ | 2,458,020 | ||||||||||||
Foreign taxes withheld on dividends and interest | $ | — | $ | 346 | $ | 1,091 | $ | — | $ | 16,198 | $ | 22,766 | $ | 142 | ||||||||||||||
See Notes to Financial Statements
B-7
PACIFIC LIFE FUNDS
STATEMENTS OF OPERATIONS (Continued)
FOR THE SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2010 (Unaudited)
STATEMENTS OF OPERATIONS (Continued)
FOR THE SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2010 (Unaudited)
PL Large-Cap | PL Main Street | PL Mid-Cap | PL Mid-Cap | PL Small-Cap | PL Small-Cap | |||||||||||||||||||||||
Value | Core | Equity | Growth | Growth | Value | PL Real Estate | ||||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||||||||||
Dividends, net of foreign taxes withheld | $ | 2,011,889 | $ | 1,114,970 | $ | 1,129,276 | $ | 365,371 | $ | 29,361 | $ | 679,671 | $ | 382,501 | ||||||||||||||
Total Investment Income | 2,011,889 | 1,114,970 | 1,129,276 | 365,371 | 29,361 | 679,671 | 382,501 | |||||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||||||
Advisory fees | 546,987 | 306,165 | 337,456 | 182,694 | 74,978 | 174,047 | 157,634 | |||||||||||||||||||||
Administration fees | 186,607 | 155,743 | 115,470 | 59,651 | 27,967 | 48,879 | 39,512 | |||||||||||||||||||||
Support services expenses | 26,011 | 23,093 | 16,455 | 9,026 | 3,981 | 6,104 | 5,573 | |||||||||||||||||||||
Custodian fees and expenses | 8,778 | 26,496 | 10,508 | 11,558 | 13,236 | 9,122 | 10,565 | |||||||||||||||||||||
Shareholder report expenses | 9,420 | 8,364 | 5,959 | 3,268 | 1,441 | 2,210 | 2,018 | |||||||||||||||||||||
Service fees | 100,687 | 89,480 | 62,664 | 34,231 | 15,398 | 23,449 | 22,072 | |||||||||||||||||||||
Transfer agency out-of-pocket expenses | 26,515 | 23,344 | 16,610 | 9,336 | 4,097 | 6,174 | 5,656 | |||||||||||||||||||||
Registration fees | 9,084 | 1,420 | 8,194 | 8,041 | 7,729 | 374 | 7,527 | |||||||||||||||||||||
Legal, audit and tax service fees | 22,764 | 20,210 | 14,401 | 7,899 | 3,483 | 5,341 | 4,877 | |||||||||||||||||||||
Trustees’ compensation and expenses | 3,619 | 3,155 | 2,279 | 1,280 | 551 | 827 | 781 | |||||||||||||||||||||
Other | 9,878 | 8,553 | 7,209 | 5,166 | 4,468 | 4,548 | 3,499 | |||||||||||||||||||||
Total Expenses | 950,350 | 666,023 | 597,205 | 332,150 | 157,329 | 281,075 | 259,714 | |||||||||||||||||||||
Adviser Reimbursement | (116,069 | ) | (114,635 | ) | (81,615 | ) | (55,574 | ) | (38,986 | ) | (34,700 | ) | (40,496 | ) | ||||||||||||||
Net Expenses | 834,281 | 551,388 | 515,590 | 276,576 | 118,343 | 246,375 | 219,218 | |||||||||||||||||||||
NET INVESTMENT INCOME (LOSS) | 1,177,608 | 563,582 | 613,686 | 88,795 | (88,982 | ) | 433,296 | 163,283 | ||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||||||||||
Net Realized Gain (Loss) On: | ||||||||||||||||||||||||||||
Investment security transactions | (936,801 | ) | 2,700,137 | 3,582,164 | 2,782,377 | 699,002 | 1,083,138 | 2,043,818 | ||||||||||||||||||||
Foreign currency transactions | (2,023 | ) | — | — | (10,741 | ) | — | (1,507 | ) | (63 | ) | |||||||||||||||||
Net Realized Gain (Loss) | (938,824 | ) | 2,700,137 | 3,582,164 | 2,771,636 | 699,002 | 1,081,631 | 2,043,755 | ||||||||||||||||||||
Net Change In Unrealized Appreciation (Depreciation) On: | ||||||||||||||||||||||||||||
Investment securities | (5,151,364 | ) | (4,536,921 | ) | (702,062 | ) | 2,570,169 | 72,831 | 1,177,890 | 805,209 | ||||||||||||||||||
Foreign currencies | 1,173 | — | — | 168 | — | (76 | ) | — | ||||||||||||||||||||
Change in Net Unrealized Appreciation (Depreciation) | (5,150,191 | ) | (4,536,921 | ) | (702,062 | ) | 2,570,337 | 72,831 | 1,177,814 | 805,209 | ||||||||||||||||||
NET GAIN (LOSS) | (6,089,015 | ) | (1,836,784 | ) | 2,880,102 | 5,341,973 | 771,833 | 2,259,445 | 2,848,964 | |||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (4,911,407 | ) | $ | (1,273,202 | ) | $ | 3,493,788 | $ | 5,430,768 | $ | 682,851 | $ | 2,692,741 | $ | 3,012,247 | ||||||||||||
Foreign taxes withheld on dividends | $ | 43,793 | $ | 2,353 | $ | — | $ | 13,406 | $ | — | $ | 4,437 | $ | 2,568 | ||||||||||||||
See Notes to Financial Statements
B-8
PACIFIC LIFE FUNDS
STATEMENTS OF OPERATIONS (Continued)
FOR THE SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2010 (Unaudited)
STATEMENTS OF OPERATIONS (Continued)
FOR THE SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2010 (Unaudited)
PL Emerging | PL International | PL International | ||||||||||
Markets | Large-Cap | Value | ||||||||||
Fund | Fund | Fund | ||||||||||
INVESTMENT INCOME | ||||||||||||
Dividends, net of foreign taxes withheld | $ | 629,163 | $ | 1,583,537 | $ | 1,469,294 | ||||||
Interest, net of foreign taxes withheld | — | 2,697 | 102 | |||||||||
Total Investment Income | 629,163 | 1,586,234 | 1,469,396 | |||||||||
EXPENSES | ||||||||||||
Advisory fees | 190,351 | 456,758 | 259,882 | |||||||||
Administration fees | 53,185 | 119,686 | 90,685 | |||||||||
Support services expenses | 7,433 | 16,455 | 13,270 | |||||||||
Custodian fees and expenses | 86,441 | 55,090 | 35,430 | |||||||||
Shareholder report expenses | 2,692 | 5,960 | 4,806 | |||||||||
Service fees | 29,158 | 65,158 | 51,214 | |||||||||
Transfer agency out-of-pocket expenses | 7,531 | 16,793 | 13,537 | |||||||||
Registration fees | 458 | 8,497 | 8,300 | |||||||||
Legal, audit and tax service fees | 6,505 | 14,400 | 11,613 | |||||||||
Trustees’ compensation and expenses | 1,018 | 2,294 | 1,886 | |||||||||
Other | 22,183 | 11,100 | 17,636 | |||||||||
Total Expenses | 406,955 | 772,191 | 508,259 | |||||||||
Adviser Reimbursement | (134,261 | ) | (130,589 | ) | (106,478 | ) | ||||||
Net Expenses | 272,694 | 641,602 | 401,781 | |||||||||
NET INVESTMENT INCOME | 356,469 | 944,632 | 1,067,615 | |||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net Realized Gain (Loss) On: | ||||||||||||
Investment security transactions (1) | 1,939,996 | (2,808,972 | ) | (2,272,588 | ) | |||||||
Futures contracts and swap transactions | — | — | 20,669 | |||||||||
Foreign currency transactions | (9,889 | ) | (25,804 | ) | 88,246 | |||||||
Net Realized Gain (Loss) | 1,930,107 | (2,834,776 | ) | (2,163,673 | ) | |||||||
Net Change In Unrealized Appreciation (Depreciation) On: | ||||||||||||
Investment securities (1) | 3,720,042 | 4,468,422 | (1,149,199 | ) | ||||||||
Futures contracts and swaps | — | — | (15,085 | ) | ||||||||
Foreign currencies | (910 | ) | 15,473 | (9,629 | ) | |||||||
Change in Net Unrealized Appreciation (Depreciation) | 3,719,132 | 4,483,895 | (1,173,913 | ) | ||||||||
NET GAIN (LOSS) | 5,649,239 | 1,649,119 | (3,337,586 | ) | ||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 6,005,708 | $ | 2,593,751 | $ | (2,269,971 | ) | |||||
Foreign taxes withheld on dividends and interest | $ | 67,632 | $ | 223,316 | $ | 224,574 | ||||||
(1) | Change in unrealized appreciation (depreciation) on securities for the PL Emerging Markets Fund are net of increase in deferred foreign capital gains tax of $9,359. No foreign tax was withheld on realized and change in unrealized capital gain for all other funds. |
See Notes to Financial Statements
B-9
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
PL Floating Rate | PL Inflation | PL Managed | PL Short Duration | |||||||||||||||||||||||||||||
Loan Fund (1) | Managed Fund (1) | Bond Fund (1) | Bond Fund (1) | |||||||||||||||||||||||||||||
Six-Month | Six-Month | Six-Month | Six-Month | |||||||||||||||||||||||||||||
Period Ended | Period Ended | Period Ended | Period Ended | |||||||||||||||||||||||||||||
September 30, | Year Ended | September 30, | Year Ended | September 30, | Year Ended | September 30, | Year Ended | |||||||||||||||||||||||||
2010 (2) | March 31, 2010 | 2010 (2) | March 31, 2010 | 2010 (2) | March 31, 2010 | 2010 (2) | March 31, 2010 | |||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||||||
Net investment income | $ | 1,273,266 | $ | 1,954,305 | $ | 1,916,494 | $ | 3,385,754 | $ | 3,003,878 | $ | 5,411,682 | $ | 465,333 | $ | 1,123,333 | ||||||||||||||||
Net realized gain | 115,816 | 955,953 | 7,059,038 | 5,658,554 | 9,167,658 | 10,759,370 | 341,006 | 1,036,747 | ||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | (748,859 | ) | 5,926,475 | 3,406,341 | 1,561,622 | 5,001,453 | 13,386,144 | 435,298 | 714,924 | |||||||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | 640,223 | 8,836,733 | 12,381,873 | 10,605,930 | 17,172,989 | 29,557,196 | 1,241,637 | 2,875,004 | ||||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||||||||||
Class A | (576,673 | ) | (1,975,960 | ) | (1,981,141 | ) | (4,584,817 | ) | (2,619,779 | ) | (9,085,139 | ) | (226,394 | ) | (1,199,020 | ) | ||||||||||||||||
Net realized gains | ||||||||||||||||||||||||||||||||
Class A | — | — | — | — | (2,540,364 | ) | (4,569,759 | ) | — | — | ||||||||||||||||||||||
Net Decrease in Net Assets Resulting from Dividends and Distributions to Shareholders | (576,673 | ) | (1,975,960 | ) | (1,981,141 | ) | (4,584,817 | ) | (5,160,143 | ) | (13,654,898 | ) | (226,394 | ) | (1,199,020 | ) | ||||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||||||||||
Class A | 7,659,141 | 21,175,293 | 20,082,422 | 62,656,627 | 33,695,419 | 76,725,391 | 14,306,748 | 35,040,145 | ||||||||||||||||||||||||
Class P | 6,980,165 | — | 10,846,232 | — | 27,893,660 | — | 8,629,366 | — | ||||||||||||||||||||||||
Dividends and distribution reinvestments | ||||||||||||||||||||||||||||||||
Class A | 576,673 | 1,975,960 | 1,978,436 | 4,569,314 | 5,154,057 | 13,624,292 | 226,240 | 1,198,965 | ||||||||||||||||||||||||
Cost of shares repurchased | ||||||||||||||||||||||||||||||||
Class A | (232,057 | ) | (4,701,222 | ) | (4,960,351 | ) | (5,059,940 | ) | (7,768,096 | ) | (8,018,991 | ) | (952,151 | ) | (9,596,640 | ) | ||||||||||||||||
Class P | (639,377 | ) | — | (10,189,713 | ) | — | (8,640,051 | ) | — | (8,251,838 | ) | — | ||||||||||||||||||||
Share class conversions | ||||||||||||||||||||||||||||||||
Class A (1) | (59,055,247 | ) | — | (169,787,788 | ) | — | (268,664,284 | ) | — | (89,594,322 | ) | — | ||||||||||||||||||||
Class P (1) | 59,055,247 | — | 169,787,788 | — | 268,664,284 | — | 89,594,322 | — | ||||||||||||||||||||||||
Net Increase in Net Assets from Capital Share Transactions | 14,344,545 | 18,450,031 | 17,757,026 | 62,166,001 | 50,334,989 | 82,330,692 | 13,958,365 | 26,642,470 | ||||||||||||||||||||||||
NET INCREASE IN NET ASSETS | 14,408,095 | 25,310,804 | 28,157,758 | 68,187,114 | 62,347,835 | 98,232,990 | 14,973,608 | 28,318,454 | ||||||||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||||||
Beginning of Year or Period | 53,121,860 | 27,811,056 | 149,453,159 | 81,266,045 | 235,957,479 | 137,724,489 | 75,673,656 | 47,355,202 | ||||||||||||||||||||||||
End of Year or Period | $ | 67,529,955 | $ | 53,121,860 | $ | 177,610,917 | $ | 149,453,159 | $ | 298,305,314 | $ | 235,957,479 | $ | 90,647,264 | $ | 75,673,656 | ||||||||||||||||
Undistributed Net Investment Income | $ | 701,342 | $ | 4,749 | $ | 542,562 | $ | 607,209 | $ | 927,925 | $ | 543,826 | $ | 249,007 | $ | 10,068 | ||||||||||||||||
(1) | Class A shares were converted to Class P shares on July 2, 2010 (see Note 1 in Notes to Financial Statements). | |
(2) | Unaudited. |
See Notes to Financial Statements
B-10
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
PL Comstock | PL Growth LT | PL Large-Cap Growth | PL Large-Cap Value | |||||||||||||||||||||||||||||
Fund (1) | Fund (1) | Fund (1) | Fund (1) | |||||||||||||||||||||||||||||
Six-Month | Six-Month | Six-Month | Six-Month | |||||||||||||||||||||||||||||
Period Ended | Period Ended | Period Ended | Period Ended | |||||||||||||||||||||||||||||
September 30, | Year Ended | September 30, | Year Ended | September 30, | Year Ended | September 30, | Year Ended | |||||||||||||||||||||||||
2010 (2) | March 31, 2010 | 2010 (2) | March 31, 2010 | 2010 (2) | March 31, 2010 | 2010 (2) | March 31, 2010 | |||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||||||
Net investment income (loss) | $ | 712,700 | $ | 961,704 | $ | 236,118 | $ | 153,170 | $ | (25,426 | ) | $ | (162,469 | ) | $ | 1,177,608 | $ | 1,848,996 | ||||||||||||||
Net realized gain (loss) | 219,705 | (6,318,818 | ) | 55,551 | (4,637,879 | ) | 774,815 | 3,605,421 | (938,824 | ) | (3,573,288 | ) | ||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | (3,608,297 | ) | 47,994,902 | (937,093 | ) | 34,435,525 | 1,708,631 | 10,919,592 | (5,150,191 | ) | 40,575,133 | |||||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (2,675,892 | ) | 42,637,788 | (645,424 | ) | 29,950,816 | 2,458,020 | 14,362,544 | (4,911,407 | ) | 38,850,841 | |||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||||||||||
Class A | (236,849 | ) | (1,052,848 | ) | — | (1,426,742 | ) | — | — | (467,480 | ) | (1,750,061 | ) | |||||||||||||||||||
Net Decrease in Net Assets Resulting from Dividends and Distributions to Shareholders | (236,849 | ) | (1,052,848 | ) | — | (1,426,742 | ) | — | — | (467,480 | ) | (1,750,061 | ) | |||||||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||||||||||
Class A | 8,415,520 | 17,633,612 | 5,457,542 | 12,826,646 | 4,037,967 | 32,510,333 | 14,633,209 | 62,793,290 | ||||||||||||||||||||||||
Class P | 10,904,655 | — | 7,350,029 | — | 21,206,076 | — | 23,581,658 | — | ||||||||||||||||||||||||
Dividends and distribution reinvestments | ||||||||||||||||||||||||||||||||
Class A | 236,711 | 1,052,607 | — | 1,426,397 | — | — | 467,255 | 1,748,702 | ||||||||||||||||||||||||
Cost of shares repurchased | ||||||||||||||||||||||||||||||||
Class A | (1,921,221 | ) | (6,963,843 | ) | (1,796,334 | ) | (27,715,411 | ) | (1,396,630 | ) | (2,281,361 | ) | (3,090,654 | ) | (2,262,396 | ) | ||||||||||||||||
Class P | (3,348,469 | ) | — | (650,949 | ) | — | (1,000,823 | ) | — | (2,452,005 | ) | — | ||||||||||||||||||||
Share class conversions | ||||||||||||||||||||||||||||||||
Class A (1) | (119,192,019 | ) | — | (82,580,720 | ) | — | (56,182,987 | ) | — | (153,219,431 | ) | — | ||||||||||||||||||||
Class P (1) | 119,192,019 | — | 82,580,720 | — | 56,182,987 | — | 153,219,431 | — | ||||||||||||||||||||||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | 14,287,196 | 11,722,376 | 10,360,288 | (13,462,368 | ) | 22,846,590 | 30,228,972 | 33,139,463 | 62,279,596 | |||||||||||||||||||||||
NET INCREASE IN NET ASSETS | 11,374,455 | 53,307,316 | 9,714,864 | 15,061,706 | 25,304,610 | 44,591,516 | 27,760,576 | 99,380,376 | ||||||||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||||||
Beginning of Year or Period | 128,169,119 | 74,861,803 | 89,219,457 | 74,157,751 | 61,106,107 | 16,514,591 | 162,311,709 | 62,931,333 | ||||||||||||||||||||||||
End of Year or Period | $ | 139,543,574 | $ | 128,169,119 | $ | 98,934,321 | $ | 89,219,457 | $ | 86,410,717 | $ | 61,106,107 | $ | 190,072,285 | $ | 162,311,709 | ||||||||||||||||
Undistributed/Accumulated Net Investment Income (Loss) | $ | 709,502 | $ | 233,651 | $ | 112,390 | $ | (123,728 | ) | $ | (31,582 | ) | $ | (6,156 | ) | $ | 1,173,017 | $ | 462,889 | |||||||||||||
(1) | Class A shares were converted to Class P shares on July 2, 2010 (see Note 1 in Notes to Financial Statements). | |
(2) | Unaudited. |
See Notes to Financial Statements
B-11
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
PL Main Street Core | PL Mid-Cap Equity | PL Mid-Cap Growth | PL Small-Cap Growth | |||||||||||||||||||||||||||||
Fund (1) | Fund (1) | Fund (1) | Fund (1) | |||||||||||||||||||||||||||||
Six-Month | Six-Month | Six-Month | Six-Month | |||||||||||||||||||||||||||||
Period Ended | Period Ended | Period Ended | Period Ended | |||||||||||||||||||||||||||||
September 30, | Year Ended | September 30, | Year Ended | September 30, | Year Ended | September 30, | Year Ended | |||||||||||||||||||||||||
2010 (2) | March 31, 2010 | 2010 (2) | March 31, 2010 | 2010 (2) | March 31, 2010 | 2010 (2) | March 31, 2010 | |||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||||||
Net investment income (loss) | $ | 563,582 | $ | 1,046,278 | $ | 613,686 | $ | 367,394 | $ | 88,795 | $ | (175,601 | ) | $ | (88,982 | ) | $ | (190,619 | ) | |||||||||||||
Net realized gain (loss) | 2,700,137 | (14,377,544 | ) | 3,582,164 | 2,654,681 | 2,771,636 | 2,074,733 | 699,002 | 64,515 | |||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | (4,536,921 | ) | 56,194,577 | (702,062 | ) | 35,083,900 | 2,570,337 | 17,555,720 | 72,831 | 11,316,545 | ||||||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (1,273,202 | ) | 42,863,311 | 3,493,788 | 38,105,975 | 5,430,768 | 19,454,852 | 682,851 | 11,190,441 | |||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||||||||||
Class A | (95,654 | ) | (1,045,156 | ) | (47,048 | ) | (432,366 | ) | — | — | — | — | ||||||||||||||||||||
Net realized gains | ||||||||||||||||||||||||||||||||
Class A | — | — | — | — | (524,490 | ) | (614,615 | ) | — | — | ||||||||||||||||||||||
Net Decrease in Net Assets Resulting from Dividends and Distributions to Shareholders | (95,654 | ) | (1,045,156 | ) | (47,048 | ) | (432,366 | ) | (524,490 | ) | (614,615 | ) | — | — | ||||||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||||||||||
Class A | 8,538,755 | 25,816,890 | 7,987,693 | 8,843,524 | 997,962 | 20,304,644 | 241,073 | 3,883,828 | ||||||||||||||||||||||||
Class P | 7,290,384 | — | 8,321,453 | — | 2,456,662 | — | 4,181,814 | — | ||||||||||||||||||||||||
Dividends and distribution reinvestments | ||||||||||||||||||||||||||||||||
Class A | 95,654 | 1,045,156 | 47,047 | 432,363 | 523,636 | 613,939 | — | — | ||||||||||||||||||||||||
Cost of shares repurchased | ||||||||||||||||||||||||||||||||
Class A | (125,274 | ) | (7,912,859 | ) | (3,190,726 | ) | (4,434,390 | ) | (5,043,424 | ) | (3,637,248 | ) | (2,114,592 | ) | (13,429,355 | ) | ||||||||||||||||
Class P | (27,145,661 | ) | — | (1,244,972 | ) | — | (6,200,233 | ) | — | (73,629 | ) | — | ||||||||||||||||||||
Share class conversions | ||||||||||||||||||||||||||||||||
Class A (1) | (136,507,682 | ) | — | (96,440,538 | ) | — | (48,202,865 | ) | — | (21,274,966 | ) | — | ||||||||||||||||||||
Class P (1) | 136,507,682 | — | 96,440,538 | — | 48,202,865 | — | 21,274,966 | — | ||||||||||||||||||||||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | (11,346,142 | ) | 18,949,187 | 11,920,495 | 4,841,497 | (7,265,397 | ) | 17,281,335 | 2,234,666 | (9,545,527 | ) | |||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | (12,714,998 | ) | 60,767,342 | 15,367,235 | 42,515,106 | (2,359,119 | ) | 36,121,572 | 2,917,517 | 1,644,914 | ||||||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||||||
Beginning of Year or Period | 146,028,412 | 85,261,070 | 101,650,153 | 59,135,047 | 54,994,269 | 18,872,697 | 25,691,397 | 24,046,483 | ||||||||||||||||||||||||
End of Year or Period | $ | 133,313,414 | $ | 146,028,412 | $ | 117,017,388 | $ | 101,650,153 | $ | 52,635,150 | $ | 54,994,269 | $ | 28,608,914 | $ | 25,691,397 | ||||||||||||||||
Undistributed/Accumulated Net Investment Income (Loss) | $ | 562,241 | $ | 94,313 | $ | 612,808 | $ | 46,170 | $ | 80,499 | $ | (8,296 | ) | $ | (90,937 | ) | $ | (1,955 | ) | |||||||||||||
(1) | Class A shares were converted to Class P shares on July 2, 2010 (see Note 1 in Notes to Financial Statements). | |
(2) | Unaudited. |
See Notes to Financial Statements
B-12
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
PL Small-Cap Value | PL Real Estate | PL Emerging Markets | PL International Large-Cap | |||||||||||||||||||||||||||||
Fund (1) | Fund (1) | Fund (1) | Fund (1) | |||||||||||||||||||||||||||||
Six-Month | Six-Month | Six-Month | Six-Month | |||||||||||||||||||||||||||||
Period Ended | Period Ended | Period Ended | Period Ended | |||||||||||||||||||||||||||||
September 30, | Year Ended | September 30, | Year Ended | September 30, | Year Ended | September 30, | Year Ended | |||||||||||||||||||||||||
2010 (2) | March 31, 2010 | 2010 (2) | March 31, 2010 | 2010 (2) | March 31, 2010 | 2010 (2) | March 31, 2010 | |||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||||||
Net investment income | $ | 433,296 | $ | 600,102 | $ | 163,283 | $ | 513,836 | $ | 356,469 | $ | 229,192 | $ | 944,632 | $ | 1,115,334 | ||||||||||||||||
Net realized gain (loss) | 1,081,631 | (4,303,623 | ) | 2,043,755 | (6,918,840 | ) | 1,930,107 | (711,695 | ) | (2,834,776 | ) | (6,136,387 | ) | |||||||||||||||||||
Net change in unrealized appreciation | 1,177,814 | 18,077,190 | 805,209 | 26,784,376 | 3,719,132 | 23,987,304 | 4,483,895 | 39,313,505 | ||||||||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | 2,692,741 | 14,373,669 | 3,012,247 | 20,379,372 | 6,005,708 | 23,504,801 | 2,593,751 | 34,292,452 | ||||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||||||||||
Class A | (68,741 | ) | (491,572 | ) | (68,821 | ) | (485,508 | ) | — | (243,918 | ) | (926,192 | ) | (975,278 | ) | |||||||||||||||||
Net Decrease in Net Assets Resulting from Dividends and Distributions to Shareholders | (68,741 | ) | (491,572 | ) | (68,821 | ) | (485,508 | ) | — | (243,918 | ) | (926,192 | ) | (975,278 | ) | |||||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||||||||||
Class A | 1,360,677 | 4,741,243 | 179,622 | 5,319,973 | 763,496 | 5,677,562 | 11,388,585 | 20,864,545 | ||||||||||||||||||||||||
Class P | 22,488,181 | — | 2,914,356 | — | 2,922,858 | — | 6,996,628 | — | ||||||||||||||||||||||||
Dividends and distribution reinvestments | ||||||||||||||||||||||||||||||||
Class A | 68,740 | 491,572 | 68,818 | 485,465 | — | 243,918 | 925,856 | 975,153 | ||||||||||||||||||||||||
Cost of shares repurchased | ||||||||||||||||||||||||||||||||
Class A | (1,398,444 | ) | (7,959,638 | ) | (3,964,447 | ) | (10,121,953 | ) | (95,644 | ) | (12,289,022 | ) | (1,280,976 | ) | (12,278,526 | ) | ||||||||||||||||
Class P | (333,511 | ) | — | (2,505,135 | ) | — | (4,709,749 | ) | — | (7,764,199 | ) | — | ||||||||||||||||||||
Share class conversions | ||||||||||||||||||||||||||||||||
Class A (1) | (35,260,361 | ) | — | (31,360,853 | ) | — | (45,487,862 | ) | — | (105,495,716 | ) | — | ||||||||||||||||||||
Class P(1) | 35,260,361 | — | 31,360,853 | — | 45,487,862 | — | 105,495,716 | — | ||||||||||||||||||||||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | 22,185,643 | (2,726,823 | ) | (3,306,786 | ) | (4,316,515 | ) | (1,119,039 | ) | (6,367,542 | ) | 10,265,894 | 9,561,172 | |||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | 24,809,643 | 11,155,274 | (363,360 | ) | 15,577,349 | 4,886,669 | 16,893,341 | 11,933,453 | 42,878,346 | |||||||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||||||
Beginning of Year or Period | 38,173,168 | 27,017,894 | 36,352,026 | 20,774,677 | 47,713,620 | 30,820,279 | 108,002,202 | 65,123,856 | ||||||||||||||||||||||||
End of Year or Period | $ | 62,982,811 | $ | 38,173,168 | $ | 35,988,666 | $ | 36,352,026 | $ | 52,600,289 | $ | 47,713,620 | $ | 119,935,655 | $ | 108,002,202 | ||||||||||||||||
Undistributed/Accumulated Net Investment Income (Loss) | $ | 442,695 | $ | 78,140 | $ | 117,848 | $ | 23,386 | $ | 349,238 | $ | (7,231 | ) | $ | 942,104 | $ | 923,664 | |||||||||||||||
(1) | Class A shares were converted to Class P shares on July 2, 2010 (see Note 1 in Notes to Financial Statements). | |
(2) | Unaudited. |
See Notes to Financial Statements
B-13
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
PL International Value | ||||||||
Fund (1) | ||||||||
Six-Month | ||||||||
Period Ended | ||||||||
September 30, | Year Ended | |||||||
2010 (2) | March 31, 2010 | |||||||
OPERATIONS | ||||||||
Net investment income | $ | 1,067,615 | $ | 1,848,094 | ||||
Net realized loss | (2,163,673 | ) | (25,094,512 | ) | ||||
Net change in unrealized appreciation (depreciation) | (1,173,913 | ) | 57,686,947 | |||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (2,269,971 | ) | 34,440,529 | |||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Net investment income | ||||||||
Class A | (468,259 | ) | (1,330,371 | ) | ||||
Net Decrease in Net Assets Resulting from Dividends and Distributions to Shareholders | (468,259 | ) | (1,330,371 | ) | ||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Proceeds from sale of shares | ||||||||
Class A | 10,276,598 | 17,693,878 | ||||||
Class P | 4,658,220 | — | ||||||
Dividends and distribution reinvestments | ||||||||
Class A | 468,104 | 1,329,963 | ||||||
Cost of shares repurchased | ||||||||
Class A | (1,331,608 | ) | (44,454,169 | ) | ||||
Class P | (14,947,221 | ) | — | |||||
Share class conversions | ||||||||
Class A (1) | (80,620,211 | ) | — | |||||
Class P(1) | 80,620,211 | — | ||||||
Net Decrease in Net Assets from Capital Share Transactions | (875,907 | ) | (25,430,328 | ) | ||||
NET INCREASE (DECREASE) IN NET ASSETS | (3,614,137 | ) | 7,679,830 | |||||
NET ASSETS | ||||||||
Beginning of Year or Period | 86,283,933 | 78,604,103 | ||||||
End of Year or Period | $ | 82,669,796 | $ | 86,283,933 | ||||
Undistributed Net Investment Income | $ | 902,047 | $ | 302,691 | ||||
(1) | Class A shares were converted to Class P shares on July 2, 2010 (see Note 1 in Notes to Financial Statements). | |
(2) | Unaudited. |
See Notes to Financial Statements
B-14
PACIFIC LIFE FUNDS
STATEMENT OF CASH FLOWS (1)
FOR THE SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2010
PL Floating | ||||
Rate Loan | ||||
Fund | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net increase in net assets from operations | $ | 640,223 | ||
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities: | ||||
Purchases of long-term securities | (46,323,853 | ) | ||
Proceeds from disposition of long-term securities | 29,071,915 | |||
Proceeds of short-term securities, net | 1,472,264 | |||
Decrease in receivable for securities sold | 2,399,939 | |||
Decrease in dividends and interest receivable | 29,282 | |||
Decrease in due from adviser | 14,817 | |||
Decrease in prepaid expense and other assets | 1,304 | |||
Decrease in payable for securities purchased | (1,110,286 | ) | ||
Increase in accrued advisory fees | 2,611 | |||
Decrease in accrued administration fees | (4,943 | ) | ||
Decrease in accrued support service expenses | (2,592 | ) | ||
Decrease in accrued custodian fees and expenses | (1,462 | ) | ||
Decrease in accrued legal, audit and tax service fees | (2,952 | ) | ||
Increase in deferred trustee compensation and expenses | 43 | |||
Decrease in distribution and/or service fees | (2,517 | ) | ||
Decrease in accrued transfer agency out-of-pocket expenses | (105 | ) | ||
Decrease in accrued other liabilities | (2,794 | ) | ||
Net amortization on investments | (510,205 | ) | ||
Net realized gain on investment security transactions | (115,816 | ) | ||
Change in net unrealized depreciation on investments securities | 748,859 | |||
Net cash flow used in operating activities | (13,696,268 | ) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: (2) | ||||
Proceeds from shares sold | 14,607,500 | |||
Payment of shares redeemed | (871,434 | ) | ||
Net cash flow provided by financing activities | 13,736,066 | |||
NET INCREASE IN CASH | 39,798 | |||
CASH: | ||||
Beginning of the period | 4,440 | |||
End of the period | $ | 44,238 | ||
(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 $576,673. |
See Notes to Financial Statements
B-15
PACIFIC LIFE FUNDS
FINANCIAL HIGHLIGHTS (1)
Selected per share, ratios and supplemental data for each year or period were as follows:
Investment Activities | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios of | Ratios of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | Net assets, | Expenses After | Expenses Before | Ratios of Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, | Net Realized | Total from | from Net | Distributions | Net Asset Value, | End of | Expense Reductions | Expense Reductions | Investment Income | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||
Beginning of | Net Investment | And Unrealized | Investment | Investment | from | Total | End of | Year or Period | to Average | to Average Net | To Average Net | Turnover | ||||||||||||||||||||||||||||||||||||||||||||
For each Year or Period | Year or Period | Income (2) | Gain (Loss) | Operations | Income | Capital Gains | Distributions | Year or Period | Total Returns (3) | (in thousands) | Net Assets (4), (5) | Assets (5) | Assets (5) | Rates | ||||||||||||||||||||||||||||||||||||||||||
PL Floating Rate Loan Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2010 — 9/30/2010 (6) | $ | 9.88 | $ | 0.21 | $ | (0.13 | ) | $ | 0.08 | $ | (0.10 | ) | $ | — | $ | (0.10 | ) | $ | 9.86 | 0.80 | % | $ | 67,530 | 1.03 | % | 1.25 | % | 4.22 | % | 52.04 | % | |||||||||||||||||||||||||
4/1/2009 — 3/31/2010 | 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 | 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 Inflation Managed Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2010 — 9/30/2010 (6) | $ | 10.10 | $ | 0.12 | $ | 0.64 | $ | 0.76 | $ | (0.12 | ) | $ | — | $ | (0.12 | ) | $ | 10.74 | 7.62 | % | $ | 177,611 | 0.74 | % | 0.95 | % | 2.26 | % | 221.64 | % | ||||||||||||||||||||||||||
4/1/2009 — 3/31/2010 | 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 | 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 | 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 | 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 | 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 Managed Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2010 — 9/30/2010 (6) | $ | 10.75 | $ | 0.12 | $ | 0.56 | $ | 0.68 | $ | (0.11 | ) | $ | (0.10 | ) | $ | (0.21 | ) | $ | 11.22 | 6.40 | % | $ | 298,305 | 0.74 | % | 0.94 | % | 2.19 | % | 170.45 | % | |||||||||||||||||||||||||
4/1/2009 — 3/31/2010 | 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 | 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 | 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 | 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 | 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 Short Duration Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2010 — 9/30/2010 (6) | $ | 10.00 | $ | 0.05 | $ | 0.09 | $ | 0.14 | $ | (0.03 | ) | $ | — | $ | (0.03 | ) | $ | 10.11 | 1.37 | % | $ | 90,647 | 0.74 | % | 0.95 | % | 1.06 | % | 51.77 | % | ||||||||||||||||||||||||||
4/1/2009 — 3/31/2010 | 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 | 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 | 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 | 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 | 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 Comstock Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2010 — 9/30/2010 (6) | $ | 10.69 | $ | 0.06 | $ | (0.32 | ) | $ | (0.26 | ) | $ | (0.02 | ) | $ | — | $ | (0.02 | ) | $ | 10.41 | (2.43 | %) | $ | 139,544 | 1.10 | % | 1.25 | % | 1.12 | % | 11.91 | % | ||||||||||||||||||||||||
4/1/2009 — 3/31/2010 | 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 | 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 | 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 | 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 | 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 | % | ||||||||||||||||||||||||||||||||||
PL Growth LT Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2010 — 9/30/2010 (6) | $ | 11.21 | $ | 0.03 | $ | (0.16 | ) | $ | (0.13 | ) | $ | — | $ | — | $ | — | $ | 11.08 | (1.16 | %) | $ | 98,934 | 0.90 | % | 1.08 | % | 0.53 | % | 25.21 | % | ||||||||||||||||||||||||||
4/1/2009 — 3/31/2010 | 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 | 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 | 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 | 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 | 10.64 | (0.05 | ) | 1.64 | 1.59 | — | — | — | 12.23 | 14.94 | % | 43,733 | 1.70 | % | 2.15 | % | (0.44 | %) | 69.48 | % |
See Notes to Financial Statements | See explanation of references on C-4 |
C-1
PACIFIC LIFE FUNDS
FINANCIAL HIGHLIGHTS (Continued) (1)
Selected per share, ratios and supplemental data for each year or period were as follows:
FINANCIAL HIGHLIGHTS (Continued) (1)
Selected per share, ratios and supplemental data for each year or period were as follows:
Investment Activities | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios of | Ratios of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | Net assets, | Expenses After | Expenses Before | Ratios of Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, | Net Realized | Total from | from Net | Distributions | Net Asset Value, | End of | Expense Reductions | Expense Reductions | Investment Income (Loss) | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||
Beginning of | Net Investment | and Unrealized | Investment | Investment | from | Total | End of | Year or Period | to Average | to Average Net | to Average Net | Turnover | ||||||||||||||||||||||||||||||||||||||||||||
For each Year or Period | Year or Period | Income (Loss) (2) | Gain (Loss) | Operations | Income | Capital Gains | Distributions | Year or Period | Total Returns (3) | (in thousands) | Net Assets (4), (5) | Assets (5) | Assets (5) | Rates | ||||||||||||||||||||||||||||||||||||||||||
PL Large-Cap Growth Fund (7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2010 — 09/30/2010 (6) | $ | 7.71 | $ | (— | )(8) | $ | 0.09 | $ | 0.09 | $ | — | $ | — | $ | — | $ | 7.80 | 1.17 | % | $ | 86,411 | 1.05 | % | 1.24 | % | (0.08 | %) | 46.19 | % | |||||||||||||||||||||||||||
4/1/2009 — 3/31/2010 | 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 | 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 | 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 | 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 | 10.14 | (0.07 | ) | 0.78 | 0.71 | — | — | — | 10.85 | 7.00 | % | 19,366 | 1.90 | % | 2.58 | % | (0.62 | %) | 160.96 | % | ||||||||||||||||||||||||||||||||||||
PL Large-Cap Value Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2010 — 09/30/2010 (6) | $ | 10.42 | $ | 0.07 | $ | (0.42 | ) | $ | (0.35 | ) | $ | (0.03 | ) | $ | — | $ | (0.03 | ) | $ | 10.04 | (3.35 | %) | $ | 190,072 | 0.99 | % | 1.13 | % | 1.40 | % | 7.38 | % | ||||||||||||||||||||||||
4/1/2009 — 3/31/2010 | 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 | 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 | 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 | 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 | 11.30 | 0.02 | 1.38 | 1.40 | (0.03 | ) | (— | )(8) | (0.03 | ) | 12.67 | 12.47 | % | 34,459 | 1.80 | % | 2.25 | % | 0.20 | % | 77.07 | % | ||||||||||||||||||||||||||||||||||
PL Main Street Core Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2010 — 09/30/2010 (6) | $ | 9.00 | $ | 0.04 | $ | (0.08 | ) | $ | (0.04 | ) | $ | (0.01 | ) | $ | — | $ | (0.01 | ) | $ | 8.95 | (0.49 | %) | $ | 133,313 | 0.81 | % | 0.98 | % | 0.83 | % | 33.35 | % | ||||||||||||||||||||||||
4/1/2009 — 3/31/2010 | 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 | 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 | 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 Mid-Cap Equity Fund (9) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2010 — 9/30/2010 (6) | $ | 8.66 | $ | 0.05 | $ | 0.18 | $ | 0.23 | $ | (— | )(8) | $ | — | $ | (— | )(8) | $ | 8.89 | 2.71 | % | $ | 117,017 | 0.99 | % | 1.15 | % | 1.08 | % | 39.80 | % | ||||||||||||||||||||||||||
4/1/2009 — 3/31/2010 | 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 | 8.92 | 0.07 | (3.58 | ) | (3.51 | ) | (0.08 | ) | (— | )(8) | (0.08 | ) | 5.33 | (39.44 | %) | 59,135 | 1.26 | % | 1.52 | % | 1.01 | % | 82.26 | % | ||||||||||||||||||||||||||||||||
4/1/2007 — 3/31/2008 | 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 | 10.54 | (— | )(8) | 1.51 | 1.51 | — | (0.43 | ) | (0.43 | ) | 11.62 | 14.80 | % | 71,181 | 1.60 | % | 2.01 | % | (—% | )(8) | 74.07 | % | ||||||||||||||||||||||||||||||||||
4/1/2005 — 3/31/2006 | 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 Mid-Cap Growth Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2010 — 09/30/2010 (6) | $ | 8.41 | $ | 0.01 | $ | 0.96 | $ | 0.97 | $ | — | $ | (0.08 | ) | $ | (0.08 | ) | $ | 9.30 | 11.74 | % | $ | 52,635 | 1.06 | % | 1.27 | % | 0.34 | % | 23.49 | % | ||||||||||||||||||||||||||
4/1/2009 — 3/31/2010 | 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 | 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 | 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 | 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 | 8.93 | (0.11 | ) | 2.85 | 2.74 | — | — | — | 11.67 | 30.68 | % | 39,980 | 1.85 | % | 2.29 | % | (1.04 | %) | 107.64 | % | ||||||||||||||||||||||||||||||||||||
PL Small-Cap Growth Fund (10) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2010 — 9/30/2010 (6) | $ | 9.41 | $ | (0.03 | ) | $ | 0.21 | $ | 0.18 | $ | — | $ | — | $ | — | $ | 9.59 | 1.91 | % | $ | 28,609 | 0.95 | % | 1.26 | % | (0.71 | )% | 33.50 | % | |||||||||||||||||||||||||||
4/1/2009 — 3/31/2010 | 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 | 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 | 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 | 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 | 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 | % |
See Notes to Financial Statements | See explanation of references on C-4 |
C-2
PACIFIC LIFE FUNDS
FINANCIAL HIGHLIGHTS (Continued) (1)
Selected per share, ratios and supplemental data for each year or period were as follows:
FINANCIAL HIGHLIGHTS (Continued) (1)
Selected per share, ratios and supplemental data for each year or period were as follows:
Investment Activities | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios of | Ratios of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | Net assets, | Expenses After | Expenses Before | Ratios of Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, | Net Realized | Total from | from Net | Distributions | Net Asset Value, | End of | Expense Reductions | Expense Reductions | Investment Income (Loss) | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||
Beginning of | Net Investment | and Unrealized | Investment | Investment | from | Total | End of | Year or Period | to Average | to Average Net | to Average Net | Turnover | ||||||||||||||||||||||||||||||||||||||||||||
For each Year or Period | Year or Period | Income (Loss) (2) | Gain (Loss) | Operations | Income | Capital Gains | Distributions | Year or Period | Total Returns (3) | (in thousands) | Net Assets (4), (5) | Assets (5) | Assets (5) | Rates | ||||||||||||||||||||||||||||||||||||||||||
PL Small-Cap Value Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2010 — 9/30/2010 (6) | $ | 8.57 | $ | 0.08 | $ | 0.21 | $ | 0.29 | $ | (0.02 | ) | $ | — | $ | (0.02 | ) | $ | 8.84 | 3.35 | % | $ | 62,983 | 1.06 | % | 1.21 | % | 1.87 | % | 12.69 | % | ||||||||||||||||||||||||||
4/1/2009 — 3/31/2010 | 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 | 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 | 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 | % | |||||||||||||||||||||||||||||||||
PL Real Estate Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2010 — 9/30/2010 (6) | $ | 9.24 | $ | 0.04 | $ | 0.81 | $ | 0.85 | $ | (0.02 | ) | $ | — | $ | (0.02 | ) | $ | 10.07 | 9.22 | % | $ | 35,989 | 1.25 | % | 1.48 | % | 0.93 | % | 15.57 | % | ||||||||||||||||||||||||||
4/1/2009 — 3/31/2010 | 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 | 11.25 | 0.15 | (6.65 | ) | (6.50 | ) | (0.15 | )(11) | — | (0.15 | ) | 4.60 | (58.24 | %) | 20,775 | 1.51 | % | 1.89 | % | 1.79 | % | 42.37 | % | |||||||||||||||||||||||||||||||||
4/1/2007 — 3/31/2008 | 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 | 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 | 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 | % | ||||||||||||||||||||||||||||||||||
PL Emerging Markets Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2010 — 9/30/2010 (6) | $ | 12.19 | $ | 0.09 | $ | 1.52 | $ | 1.61 | $ | — | $ | — | $ | — | $ | 13.80 | 13.21 | % | $ | 52,600 | 1.15 | % | 1.71 | % | 1.50 | % | 18.20 | % | ||||||||||||||||||||||||||||
4/1/2009 — 3/31/2010 | 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 | 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 | 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 | ) | (— | )(8) | (0.08 | ) | 12.00 | 20.94 | % | 33,476 | 1.95 | % | 5.53 | % | 1.88 | % | 41.88 | % | ||||||||||||||||||||||||||||||||||
PL International Large-Cap Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2010 — 9/30/2010 (6) | $ | 13.83 | $ | 0.11 | $ | 0.09 | $ | 0.20 | $ | (0.11 | ) | $ | — | $ | (0.11 | ) | $ | 13.92 | 1.55 | % | $ | 119,936 | 1.19 | % | 1.44 | % | 1.76 | % | 15.22 | % | ||||||||||||||||||||||||||
4/1/2009 — 3/31/2010 | 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 | 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 | 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 | 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 | 12.83 | (— | )(8) | 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 International Value Fund (12) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2010 — 9/30/2010 (6) | $ | 9.19 | $ | 0.11 | $ | (0.36 | ) | $ | (0.25 | ) | $ | (0.04 | ) | $ | — | $ | (0.04 | ) | $ | 8.90 | (2.59 | %) | $ | 82,670 | 1.00 | % | 1.27 | % | 2.67 | % | 46.81 | % | ||||||||||||||||||||||||
4/1/2009 — 3/31/2010 | 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 | 12.82 | 0.26 | (6.72 | ) | (6.46 | ) | (0.22 | ) | (— | )(8) | (0.22 | ) | 6.14 | (50.74 | %) | 78,604 | 1.27 | % | 1.58 | % | 2.82 | % | 31.43 | % | ||||||||||||||||||||||||||||||||
4/1/2007 — 3/31/2008 | 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 | 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 | 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 C-4 |
C-3
PACIFIC LIFE FUNDS
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period were as follows:
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period were as follows:
Explanation of References
(1) | The Underlying Funds currently offer Class P shares only. Effective July 2, 2010, all Class A Shares of the Underlying Funds were converted to Class P Shares. Performance information prior to the conversion pertains to Class A shares and reflects the fees and expenses associated with that share class. | |
(2) | Net investment income (loss) per share has been calculated using the average shares method with the exception of the PL Main Street Core and PL Emerging Markets Funds for the fiscal year ended March 31, 2007 and the period ended March 31, 2006. | |
(3) | 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. | |
(4) | The ratios of expenses after expense reductions to average net assets are after any adviser expense reimbursements as discussed in Note 5 in Notes to the Financial Statements. | |
(5) | The ratios are annualized for periods of less than one full year. | |
(6) | Unaudited. | |
(7) | Prior to January 1, 2006, the PL Large-Cap Growth Fund was named the PF AIM Blue Chip Fund. | |
(8) | Amount represents less than $0.005 per share or less than 0.005%. | |
(9) | Prior to July 1, 2008, the PL Mid-Cap Equity Fund was named PL Mid-Cap Value Fund. | |
(10) | Prior to October 1, 2005, the PL Small-Cap Growth Fund was named the PF AIM Aggressive Growth Fund. | |
(11) | Includes return of capital distribution of $0.01 per share. | |
(12) | Prior to May 1, 2006, the PL International Value Fund was named PF Lazard International Value Fund. |
See Notes to Financial Statements
C-4
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
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 September 30, 2010, was comprised of twenty-three separate funds, seventeen of which are covered by this report (each individually, a “Fund”, and collectively the “Funds” or “Underlying Funds”): PL Floating Rate Loan Fund, PL Inflation Managed Fund, PL Managed Bond Fund, PL Short Duration Bond Fund, PL Comstock Fund, PL Growth LT Fund, PL Large-Cap Growth Fund, PL Large-Cap Value Fund, PL Main Street® Core Fund (Main Street is a registered trademark of OppenheimerFunds, Inc.), PL Mid-Cap Equity Fund, PL Mid-Cap Growth Fund, PL Small-Cap Growth Fund, PL Small-Cap Value Fund, PL Real Estate Fund, PL Emerging Markets Fund, PL International Large-Cap Fund, and PL International Value Fund.
Effective July 2, 2010, all Class A shares of the Underlying Funds were converted to Class P shares within the Trust. The Underlying Funds offer Class P shares only, which are offered at Net Asset Value (“NAV”). Presently, only 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 investment adviser and certain of its affiliates can invest in the Underlying Funds.
The Portfolio Optimization Funds are not covered by this report. The accounting policies of the Portfolio Optimization Funds are outlined in the shareholder report for the Portfolio Optimization Funds and PL Money Market Fund which is available without charge by calling 1-800-722-2333, on the Trust’s website at http://www.PacificLife.com, on the Securities and Exchange Commission (the “SEC”) website at http://www.sec.gov, or at the SEC’s Public Reference Room in Washington D.C.
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. In preparing the financial statements, management is required 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.
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 fair 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 liabilities), and dividing by the total number of shares outstanding. The fair value of each security or other investment (each a “Holding” and collectively “Holdings”) is the amount which a Fund might reasonably expect to receive for the Holding upon its current sale in the ordinary course.
Each Fund’s NAV per share is calculated once a day, every day the New York Stock Exchange (“NYSE”) is open, including days when foreign markets are closed. The value of each Fund (the NAV) is determined as of the time of the close of the NYSE, which is usually 4:00 p.m. Eastern Time.
Each Fund’s NAV will not be calculated 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 securities or other instruments or determinations of NAV not practicable, or (iv) the SEC permits a delay for the protection of shareholders.
For purposes of calculating the NAV:
Money Market Instruments and Short-Term Holdings. Money market instruments and short-term Holdings maturing within 60 days 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 consistency in valuation, (and may only be used if it 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. Fund Holdings in other funds for temporary cash purposes are valued at their respective NAVs.
Domestic Equity Holdings. For domestic equity Holdings, the Trust normally uses the last reported sale price received shortly after the 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. The Trust then may adjust for market events, that occur between the close of certain foreign exchanges and the NYSE. The Trust has retained an independent statistical service approved by the Trust’s Board of Trustees (the “Board”) to assist in determining the value of certain foreign equity securities. This service utilizes proprietary computer models based on historical performance of markets and other considerations. Quotations of foreign Holdings in foreign currencies
D-1
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
and those valued using foreign currency rates are converted into 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.
Fair Values Determined by the Board or a Valuation Committee Approved by the Board
In the event a market quotation for a Holding is not available or reliable, such Holding will not be priced on the basis of quotes from the primary market in which it is traded. Rather, the Trust may value such Holding using alternate valuation methodologies, such as benchmark pricing, matrix pricing, options model pricing or other approved pricing formulas or processes. Valuations determined according to approved procedures may require subjective inputs about the value of such Holding. Under the Trust’s Procedures, the Board or its delegate (generally a valuation committee established by the Trust’s Advisor), may approve alternate valuation methodologies.
In the event that: (1) market quotations are not readily available (i.e., approved pricing services do not provide a valuation for a particular Holding) or are deemed unreliable or inaccurate, (2) prices obtained through approved alternate pricing methodologies are deemed unreliable or inaccurate, or (3) events that could materially affect the NAV were to occur after the close of the principal market for a particular Holding but before the time as of which each Fund values its assets (generally the close of the NYSE), then the Board, a Board Valuation Committee, or a delegate of the Board, may value the holdings in good faith in accordance with the provisions of the 1940 Act. Such valuation may also require subjective inputs about the value of the Holding and may be more subjective than other pricing methods. While such valuations are intended to estimate the value a Fund might reasonably expect to receive upon the sale of a Holding in the ordinary course, such values may differ from the value that such Fund would actually realize if the Holding were sold.
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. 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 2F) 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, which are compensation for agreeing to changes in the terms of debt instruments, 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.
C. DISTRIBUTIONS TO SHAREHOLDERS
Each Fund currently intends to distribute substantially all of its net investment income and realized capital gains, if any, at least annually, although distribution could occur more frequently if it is advantageous to the specific Fund and to its shareholders.
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.
D-2
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
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, if any, 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.
F. INVESTMENTS AND RISKS
General Investment Risks
An investment in each Fund represents an indirect investment in the Holdings owned by that Fund. As with any mutual fund, the value of these Holdings may move up or down, and as a result, 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. Events in the financial markets have the potential to cause increased volatility and uncertainty, which may impact the value of a Fund’s Holdings. 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.
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 fixed income (debt) Holdings. There is a risk that an issuer of a Fund’s fixed income (debt) Holding (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 may not be 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.
There are certain additional risks involved in investing in foreign securities that may not be 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.
None of the Funds may invest in illiquid securities and illiquid bank loans (collectively, “Illiquid Holdings”) if as a result of such investment, more than 15% 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 Holdings. Illiquid Holdings may be difficult to value and difficult to sell, which means a Fund may not be able to sell such Holdings quickly for its full value. The market value of Illiquid Holdings held by each Fund as of September 30, 2010 was less than 15% of its net assets.
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
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NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
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.
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 that are 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 September 30, 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. Mortgage-related and other asset-backed securities are debt securities issued by a corporation, trust or custodian, or by a U.S. Government agency or instrumentality, that are 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 a 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 are 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
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(Unaudited)
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.
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.
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 Agreements (“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 is 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.
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NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
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 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.
Reverse Repurchase Agreements
Certain Funds may enter into reverse repurchase agreements. In a reverse repurchase agreement, a Fund sells to a financial institution a security that it holds with an agreement to repurchase the same security at the agreed-upon price and date. Securities sold under reverse repurchase agreements are reflected as a liability on the Statements of Assets and Liabilities. Interest payments made are recorded as a component of interest expense on the Statements of Operations. In periods of increased demand for the security, a Fund may receive a fee for use of the security by the counterparty, which may result in interest income to the Fund. A reverse repurchase agreement involves the risk that the market value of the security sold by a Fund may decline below the repurchase price of the security. A Fund will segregate assets determined to be liquid by the investment adviser or otherwise cover its obligations under reverse repurchase agreements.
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 12 for a detailed discussion on derivative instruments).
G. NEW ACCOUNTING PRONOUNCEMENT
In January 2010, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2010-06, Improving Disclosures about Fair Value Measurements, (“ASU”). This ASU amends FASB Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures, and requires entities to disclose the amounts and reasons for significant transfers between Levels 1 and 2 in the fair value hierarchy and inputs and valuation techniques used to determine Level 2 and Level 3 fair value measurements (see Note 11), and 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). This ASU 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 interim and annual periods beginning after December 15, 2010). The Trust implemented the disclosures required for interim and annual periods beginning after December 15, 2009 (see the Notes to Schedules of Investments section of each Fund’s Schedule of Investments and Note 11). Management is currently evaluating the impact of additional implementation of this ASU 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”), a wholly owned subsidiary of Pacific Life Insurance Company (“Pacific Life”), serves as investment adviser to the Trust. For each Fund, 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 Floating Rate Loan (1) | 0.75 | % | PL Large-Cap Growth (2) | 0.75 | % | PL Small-Cap Value | 0.75 | % | ||||||||
PL Inflation Managed | 0.40 | % | PL Large-Cap Value | 0.65 | % | PL Real Estate | 0.90 | % | ||||||||
PL Managed Bond | 0.40 | % | PL Main Street Core | 0.45 | % | PL Emerging Markets | 0.80 | % | ||||||||
PL Short Duration Bond | 0.40 | % | PL Mid-Cap Equity | 0.65 | % | PL International Large-Cap | 0.85 | % | ||||||||
PL Comstock | 0.75 | % | PL Mid-Cap Growth | 0.70 | % | PL International Value | 0.65 | % | ||||||||
PL Growth LT | 0.55 | % | PL Small-Cap Growth | 0.60 | % |
(1) | Effective July 1, 2010, PLFA has contractually agreed to waive 0.10% of its advisory fees through June 30, 2011 as long as Eaton Vance Management remains manager of the Fund. There is no guarantee that PLFA will continue such waiver after that date. | |
(2) | PLFA has contractually 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. |
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PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
Pursuant to Fund Management Agreements, the Trust and PLFA engage various management firms under PLFA’s supervision for the Underlying Funds. As of September 30, 2010, the following firms serve as sub-advisers for their respective Fund: Eaton Vance Management for the PL Floating Rate Loan Fund; Pacific Investment Management Company LLC for the PL Inflation Managed and PL Managed Bond Funds; Goldman Sachs Asset Management, L.P. for the PL Short Duration Bond Fund; Invesco Advisers, Inc. for the PL Comstock Fund; Janus Capital Management LLC for the PL Growth LT Fund; UBS Global Asset Management (Americas) Inc. for the PL Large-Cap Growth Fund; ClearBridge Advisors, LLC for the PL Large-Cap Value Fund; OppenheimerFunds, Inc. for the PL Main Street Core and PL Emerging Markets Funds; Lazard Asset Management LLC for the PL Mid-Cap Equity Fund; Morgan Stanley Investment Management Inc. for the PL Mid-Cap Growth and PL Real Estate Funds; Fred Alger Management, Inc. for the PL Small-Cap Growth Fund; NFJ Investment Group LLC for the PL Small-Cap Value Fund; MFS Investment Management for the PL International Large-Cap Fund; and AllianceBernstein L.P. for the PL International Value Fund; 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. Effective July 1, 2010, the Trust compensates the Administrator at an annual rate of 0.15% of average daily net assets. From April 1, 2010 to June 30, 2010, the Trust compensated the Administrator at an annual rate of 0.30% of average daily net assets. The Administrative fee is 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 compensated Pacific Life and PLFA for their expenses in providing support services to the Trust in connection with various matters, some of which include the time spent by legal, accounting, and compliance personnel of PLFA (including individuals who may be officers or Trustees of the Trust (“Personnel”)), to attend meetings of the Board and to provide assistance with the coordination and supervision in connection with the services procured for the Trust under the Administration Agreement. Support services do not include any services for which PLFA is responsible pursuant to the Investment Advisory Agreement. 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, advertisements, and other marketing efforts by the Distributor in connection with the distribution or sale of the Trust’s shares and makes distribution and/or service payments to selling groups in connection with the sale of certain of the Trust’s shares and subsequent servicing needs of shareholders provided by selling groups. For the period April 1, 2010 through July 1, 2010, the Distributor received service fees from the Underlying Funds pursuant to a Class A Service Plan (non 12b-1) for shareholder servicing activities. The service fee was 0.25% for Class A. The Class A shares did not pay a distribution fee. The fees were accrued daily. Effective July 2, 2010, the Class A shares were converted to Class P, which do not incur a service fee.
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 of the corresponding Portfolio Optimization Funds and PL Money Market Fund, and/or Class A shares (prior to July 1, 2010) and Class P shares (effective July 1, 2010) of the corresponding Underlying 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 market fluctuation. The change in net unrealized appreciation or deprecation on independent trustee’s deferred compensation accounts is included in the Trustees’ compensation and expenses in the Statements of Operations. For the six-month period ended September 30, 2010, the expenses were decreased by $3,323 as a result of the market value depreciation on such accounts. As of September 30, 2010, the total deferred trustee compensation liability was $43,671 for the independent trustees.
5. EXPENSE REDUCTIONS
To help limit the Trust’s expenses, PLFA, pursuant to an expense limitation agreement dated July 1, 2010, has contractually agreed to reduce its fees or otherwise reimburse each Fund for its operating expenses (including the administration fee and 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 rate based on a percentage of a Fund’s average daily net assets. The current expense cap is 0.15% through June 30, 2013, and 0.30% from July 1, 2013 through June 30, 2020.
From April 1, 2010 to July 1, 2010, pursuant to an expense limitation agreement dated July 1, 2008, PLFA reimbursed each Fund for its operational expenses above the cap. The expense cap during this time was 0.30%. The investment adviser expense reimbursement for the six-month period ended September 30, 2010 for each Fund was as follows:
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PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
Investment | ||||
Adviser | ||||
Expense | ||||
Fund | Reimbursements | |||
PL Floating Rate Loan | $ | 49,111 | ||
PL Inflation Managed | 174,094 | |||
PL Managed Bond | 279,965 | |||
PL Short Duration Bond | 92,123 | |||
PL Comstock | 100,288 | |||
PL Growth LT | 84,372 | |||
PL Large-Cap Growth | 54,988 | |||
PL Large-Cap Value | 116,069 | |||
PL Main Street Core | 114,635 | |||
PL Mid-Cap Equity | 81,615 | |||
PL Mid-Cap Growth | 55,574 | |||
PL Small-Cap Growth | 38,986 | |||
PL Small-Cap Value | 34,700 | |||
PL Real Estate | 40,496 | |||
PL Emerging Markets | 134,261 | |||
PL International Large-Cap | 130,589 | |||
PL International Value | 106,478 | |||
Total | $ | 1,688,344 | ||
There is no guarantee that PLFA will continue to cap expenses after June 30, 2020. Any reimbursement is subject to repayment to PLFA 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 will have the effect of increasing such expenses of the Fund, but not above the expense cap.
The cumulative reimbursement and reduction amounts, if any, as of September 30, 2010 that are subject to repayment for each Fund are as follows:
Expiration Date | ||||||||||||||||
Fund | 3/31/2011 | 3/31/2012 | 3/31/2013 | 3/31/2014 | ||||||||||||
PL Floating Rate Loan | $ | — | $ | 55,422 | $ | 98,235 | $ | 49,111 | ||||||||
PL Inflation Managed | 359,755 | 341,417 | 308,763 | 174,094 | ||||||||||||
PL Managed Bond | 501,374 | 472,001 | 502,729 | 279,965 | ||||||||||||
PL Short Duration Bond | 212,660 | 150,950 | 164,724 | 92,123 | ||||||||||||
PL Comstock | 300,315 | 214,389 | 214,415 | 100,288 | ||||||||||||
PL Growth LT | 272,256 | 229,867 | 216,805 | 84,372 | ||||||||||||
PL Large-Cap Growth | 140,798 | 94,718 | 120,503 | 54,988 | ||||||||||||
PL Large-Cap Value | 198,498 | 175,460 | 216,004 | 116,069 | ||||||||||||
PL Main Street Core | 315,029 | 370,309 | 266,417 | 114,635 | ||||||||||||
PL Mid-Cap Equity | 234,458 | 195,175 | 177,580 | 81,615 | ||||||||||||
PL Mid-Cap Growth | 238,535 | 138,724 | 115,208 | 55,574 | ||||||||||||
PL Small-Cap Growth | 165,822 | 131,007 | 96,729 | 38,986 | ||||||||||||
PL Small-Cap Value | 66,498 | 120,502 | 92,384 | 34,700 | ||||||||||||
PL Real Estate | 138,599 | 118,370 | 94,439 | 40,496 | ||||||||||||
PL Emerging Markets | 455,787 | 347,289 | 319,937 | 134,261 | ||||||||||||
PL International Large-Cap | 357,364 | 296,673 | 286,639 | 130,589 | ||||||||||||
PL International Value | 343,568 | 325,469 | 289,342 | 106,478 | ||||||||||||
Total | $ | 4,301,316 | $ | 3,777,742 | $ | 3,580,853 | $ | 1,688,344 | ||||||||
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 September 30, 2010. The adviser expense reimbursement and administrator fee reduction is presented in the Statements of Operations.
6. TRANSACTIONS WITH AFFILIATES
The Funds have incurred $4,931,265 of investment advisory fees (after $16,049 and $8,450 advisory fee waivers for the PL Floating Rate Loan Fund and PL Large-Cap Growth Fund, respectively), $1,867,826 of administration fees, and $263,592 of expenses for support services provided by Pacific Life and PLFA (at approximate cost, see Note 3), for the six-month period ended September 30, 2010. As of September 30, 2010, $860,507, $219,710 and $100,407, respectively, remained payable.
For the six-month period ended September 30, 2010, the Funds also incurred $1,015,080 of service fees, payable to the Distributor under the non 12b-1 service plan. As of September 30, 2010, no fees remained payable.
D-8
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
7. TAX CHARACTER OF DISTRIBUTIONS AND COMPONENTS OF DISTRIBUTABLE EARNINGS
The tax character of distributions paid during the six-month period ended September 30, 2010, was as follows:
Distributions Paid From | ||||||||||||
Ordinary | Long-Term | Total | ||||||||||
Fund | Income | Capital Gains | Distributions | |||||||||
PL Floating Rate Loan | $ | 576,673 | $ | — | $ | 576,673 | ||||||
PL Inflation Managed | 1,981,141 | — | 1,981,141 | |||||||||
PL Managed Bond | 4,261,752 | 898,391 | 5,160,143 | |||||||||
PL Short Duration Bond | 226,394 | — | 226,394 | |||||||||
PL Comstock | 236,849 | — | 236,849 | |||||||||
PL Large-Cap Value | 467,480 | — | 467,480 | |||||||||
PL Main Street Core | 95,654 | — | 95,654 | |||||||||
PL Mid-Cap Equity | 47,048 | — | 47,048 | |||||||||
PL Mid-Cap Growth | 338,784 | 185,706 | 524,490 | |||||||||
PL Small-Cap Value | 68,741 | — | 68,741 | |||||||||
PL Real Estate | 68,821 | — | 68,821 | |||||||||
PL International Large-Cap | 926,192 | — | 926,192 | |||||||||
PL International Value | 468,259 | — | 468,259 |
The tax character of distributions paid during the year ended March 31, 2010, were as follows:
Distributions Paid From | ||||||||||||
Ordinary | Long-Term | Total | ||||||||||
Fund | Income | Capital Gains | Distributions | |||||||||
PL Floating Rate Loan | $ | 1,975,960 | $ | — | $ | 1,975,960 | ||||||
PL Inflation Managed | 4,584,817 | — | 4,584,817 | |||||||||
PL Managed Bond | 12,379,527 | 1,275,371 | 13,654,898 | |||||||||
PL Short Duration Bond | 1,199,020 | — | 1,199,020 | |||||||||
PL Comstock | 1,052,848 | — | 1,052,848 | |||||||||
PL Growth LT | 1,426,742 | — | 1,426,742 | |||||||||
PL Large-Cap Value | 1,750,061 | — | 1,750,061 | |||||||||
PL Main Street Core | 1,045,156 | — | 1,045,156 | |||||||||
PL Mid-Cap Equity | 432,366 | — | 432,366 | |||||||||
PL Mid-Cap Growth | 316,397 | 298,218 | 614,615 | |||||||||
PL Small-Cap Value | 491,572 | — | 491,572 | |||||||||
PL Real Estate | 485,508 | — | 485,508 | |||||||||
PL Emerging Markets | 243,918 | — | 243,918 | |||||||||
PL International Large-Cap | 975,278 | — | 975,278 | |||||||||
PL International Value | 1,330,371 | — | 1,330,371 |
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 | |||||||||||||
Fund | Other Losses | Income | Capital Gains | (Depreciation) (1) | ||||||||||||
PL Floating Rate Loan | $ | (1,147,360 | ) | $ | 4,801 | $ | — | $ | 1,280,599 | |||||||
PL Inflation Managed | (2,055,282 | ) | 922,958 | — | (1,174,200 | ) | ||||||||||
PL Managed Bond | — | 2,687,790 | 898,386 | 2,560,288 | ||||||||||||
PL Short Duration Bond | (115,124 | ) | 11,214 | — | 607,786 | |||||||||||
PL Comstock | (32,747,659 | ) | 236,840 | — | 10,906,724 | |||||||||||
PL Growth LT | (26,636,303 | ) | — | — | 16,656,144 | |||||||||||
PL Large-Cap Growth | (6,317,156 | ) | — | — | 11,275,926 | |||||||||||
PL Large-Cap Value | (16,387,956 | ) | 467,480 | — | 18,524,450 | |||||||||||
PL Main Street Core | (37,634,222 | ) | 95,631 | — | 21,210,304 | |||||||||||
PL Mid-Cap Equity | (27,280,380 | ) | 47,030 | — | 15,683,944 | |||||||||||
PL Mid-Cap Growth | (5,113 | ) | 338,779 | 185,699 | 11,027,887 | |||||||||||
PL Small-Cap Growth | (11,360,287 | ) | — | — | 5,705,076 | |||||||||||
PL Small-Cap Value | (9,914,886 | ) | 78,018 | — | 5,815,172 | |||||||||||
PL Real Estate | (13,200,079 | ) | 24,530 | — | 8,813,007 | |||||||||||
PL Emerging Markets | (5,074,455 | ) | — | — | 14,306,254 | |||||||||||
PL International Large-Cap | (11,772,430 | ) | 926,186 | — | 11,161,207 | |||||||||||
PL International Value | (47,530,599 | ) | 468,253 | — | 2,961,558 |
(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.
D-9
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
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 | Net Capital Loss Carryover Expiring on March 31 | October | Foreign | Capital and | ||||||||||||||||||||||||||||||||
Loss | 2014 | Capital Loss | Currency | Other | ||||||||||||||||||||||||||||||||
Fund | Carryover | and Prior | 2015 | 2016 | 2017 | 2018 | Deferral | Loss Deferral | Losses | |||||||||||||||||||||||||||
PL Floating Rate Loan | $ | (1,119,961 | ) | $ | — | $ | — | $ | — | $ | (439,943 | ) | $ | (680,018 | ) | $ | (27,399 | ) | $ | — | $ | (1,147,360 | ) | |||||||||||||
PL Inflation Managed | (2,055,282 | ) | — | — | — | (141,727 | ) | (1,913,555 | ) | — | — | (2,055,282 | ) | |||||||||||||||||||||||
PL Short Duration Bond | (115,124 | ) | — | — | — | — | (115,124 | ) | — | — | (115,124 | ) | ||||||||||||||||||||||||
PL Comstock | (32,321,233 | ) | — | — | — | (12,106,786 | ) | (20,214,447 | ) | (426,426 | ) | — | (32,747,659 | ) | ||||||||||||||||||||||
PL Growth LT | (26,636,303 | ) | — | — | — | (7,353,330 | ) | �� | (19,282,973 | ) | — | — | (26,636,303 | ) | ||||||||||||||||||||||
PL Large-Cap Growth (1) | (6,317,156 | ) | (64,425 | ) | (1,076,170 | ) | — | (4,424,082 | ) | (752,479 | ) | — | — | (6,317,156 | ) | |||||||||||||||||||||
PL Large-Cap Value | (16,387,770 | ) | — | — | — | (5,885,797 | ) | (10,501,973 | ) | — | (186 | ) | (16,387,956 | ) | ||||||||||||||||||||||
PL Main Street Core | (37,183,558 | ) | — | — | — | (13,408,365 | ) | (23,775,193 | ) | (450,664 | ) | — | (37,634,222 | ) | ||||||||||||||||||||||
PL Mid-Cap Equity | (27,280,380 | ) | — | — | — | (15,810,724 | ) | (11,469,656 | ) | — | — | (27,280,380 | ) | |||||||||||||||||||||||
PL Mid-Cap Growth | — | — | — | — | — | — | — | (5,113 | ) | (5,113 | ) | |||||||||||||||||||||||||
PL Small-Cap Growth | (11,360,287 | ) | — | — | — | (5,477,816 | ) | (5,882,471 | ) | — | — | (11,360,287 | ) | |||||||||||||||||||||||
PL Small-Cap Value | (9,914,886 | ) | — | — | (32,441 | ) | (1,686,569 | ) | (8,195,876 | ) | — | — | (9,914,886 | ) | ||||||||||||||||||||||
PL Real Estate | (13,082,495 | ) | — | — | — | (2,282,346 | ) | (10,800,149 | ) | (116,875 | ) | (709 | ) | (13,200,079 | ) | |||||||||||||||||||||
PL Emerging Markets | (5,067,942 | ) | — | — | — | — | (5,067,942 | ) | — | (6,513 | ) | (5,074,455 | ) | |||||||||||||||||||||||
PL International Large-Cap | (10,448,857 | ) | — | — | — | (2,153,723 | ) | (8,295,134 | ) | (1,323,756 | ) | — | (11,772,613 | ) | ||||||||||||||||||||||
PL International Value | (46,556,772 | ) | — | — | — | (7,806,521 | ) | (38,750,251 | ) | (973,827 | ) | — | (47,530,599 | ) |
(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 2014 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 September 30, 2010, were as follows:
Gross | Gross | Net Unrealized | ||||||||||||||||||||||
Total Cost of | Unrealized | Unrealized | Net Unrealized | Appreciation | ||||||||||||||||||||
Investments | Appreciation | Depreciation | Appreciation | (Depreciation) | Net Unrealized | |||||||||||||||||||
Fund | on Tax Basis | on Investments | on Investments | on Investments | on Other (1) | Appreciation | ||||||||||||||||||
PL Floating Rate Loan | $ | 70,542,299 | $ | 1,293,087 | $ | (761,347 | ) | $ | 531,740 | $ | — | $ | 531,740 | |||||||||||
PL Inflation Managed | 217,030,472 | 5,641,683 | (336,215 | ) | 5,305,468 | 99,951 | 5,405,419 | |||||||||||||||||
PL Managed Bond | 344,738,079 | 12,559,571 | (5,625,470 | ) | 6,934,101 | 1,417,054 | 8,351,155 | |||||||||||||||||
PL Short Duration Bond | 93,938,645 | 1,228,877 | (173,885 | ) | 1,054,992 | — | 1,054,992 | |||||||||||||||||
PL Comstock | 131,726,902 | 11,205,454 | (3,581,603 | ) | 7,623,851 | — | 7,623,851 | |||||||||||||||||
PL Growth LT | 82,708,357 | 17,070,081 | (1,098,505 | ) | 15,971,576 | (82,505 | ) | 15,889,071 | ||||||||||||||||
PL Large-Cap Growth | 73,821,354 | 13,240,044 | (574,209 | ) | 12,665,835 | — | 12,665,835 | |||||||||||||||||
PL Large-Cap Value | 179,139,609 | 18,814,237 | (5,628,473 | ) | 13,185,764 | — | 13,185,764 | |||||||||||||||||
PL Main Street Core | 117,117,803 | 17,623,352 | (2,070,683 | ) | 15,552,669 | — | 15,552,669 | |||||||||||||||||
PL Mid-Cap Equity | 100,811,652 | 16,206,756 | (892,391 | ) | 15,314,365 | — | 15,314,365 | |||||||||||||||||
PL Mid-Cap Growth | 38,462,211 | 14,517,789 | (901,536 | ) | 13,616,253 | 168 | 13,616,421 | |||||||||||||||||
PL Small-Cap Growth | 22,983,762 | 6,219,261 | (424,598 | ) | 5,794,663 | — | 5,794,663 | |||||||||||||||||
PL Small-Cap Value | 56,168,442 | 8,380,053 | (1,404,323 | ) | 6,975,730 | (76 | ) | 6,975,654 | ||||||||||||||||
PL Real Estate | 26,447,847 | 9,997,590 | (245,198 | ) | 9,752,392 | — | 9,752,392 | |||||||||||||||||
PL Emerging Markets | 33,936,346 | 18,478,782 | (308,320 | ) | 18,170,462 | (8,780 | ) | 18,161,682 | ||||||||||||||||
PL International Large Cap | 108,744,347 | 19,536,664 | (4,544,305 | ) | 14,992,359 | 19,971 | 15,012,330 | |||||||||||||||||
PL International Value | 80,133,085 | 6,719,520 | (4,195,798 | ) | 2,523,722 | (14,247 | ) | 2,509,475 |
(1) | Other includes net appreciation or depreciation on derivatives, securities sold short, and assets and liabilities in foreign currencies, if any. |
D-10
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
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. UNFUNDED SENIOR LOAN COMMITMENTS
Unfunded loan commitments on senior loan participations and assignments (Note 2F), if any, are marked to market daily and valued according to the Trust’s valuation policies and procedures. Any outstanding unfunded loan commitments are presented in the Notes to Schedules of Investments section of each applicable Fund’s Schedule of Investments. Any applicable net unrealized appreciation or depreciation at the end of the reporting period and change in net unrealized appreciation or depreciation on unfunded loan commitments for the reporting period is reflected on the Statements of Assets and Liabilities and the Statements of Operations, respectively. As of September 30, 2010, no unfunded loan commitments were held by any Fund.
10. PURCHASES AND SALES OF SECURITIES
The cost of purchases and proceeds from sales of securities (excluding short-term investments) for the six-month period ended September 30, 2010, is as follows:
U.S. Government Securities | Other Securities | |||||||||||||||
Fund | Purchases | Sales | Purchases | Sales | ||||||||||||
PL Floating Rate Loan | $ | — | $ | — | $ | 46,323,853 | $ | 29,071,915 | ||||||||
PL Inflation Managed | 474,222,319 | 426,631,142 | 21,174,023 | 15,969,408 | ||||||||||||
PL Managed Bond | 509,540,564 | 384,668,025 | 25,471,996 | 15,736,114 | ||||||||||||
PL Short Duration Bond | 49,294,882 | 35,438,392 | 16,108,800 | 5,337,255 | ||||||||||||
PL Comstock | — | — | 27,106,559 | 14,409,877 | ||||||||||||
PL Growth LT | — | — | 31,397,265 | 21,107,334 | ||||||||||||
PL Large-Cap Growth | — | — | 53,634,246 | 30,927,951 | ||||||||||||
PL Large-Cap Value | — | — | 43,951,142 | 11,930,997 | ||||||||||||
PL Main Street Core | — | — | 44,208,113 | 55,941,403 | ||||||||||||
PL Mid-Cap Equity | — | — | 49,607,959 | 39,983,892 | ||||||||||||
PL Mid-Cap Growth | — | — | 11,958,559 | 20,500,356 | ||||||||||||
PL Small-Cap Growth | — | — | 9,810,273 | 8,141,286 | ||||||||||||
PL Small-Cap Value | — | — | 25,511,995 | 5,651,877 | ||||||||||||
PL Real Estate | — | — | 5,261,813 | 8,366,652 | ||||||||||||
PL Emerging Markets | — | — | 8,382,971 | 9,605,194 | ||||||||||||
PL International Large-Cap | — | — | 28,254,337 | 15,950,291 | ||||||||||||
PL International Value | — | — | 36,028,450 | 36,081,332 |
11. FAIR VALUE MEASUREMENTS AND DISCLOSURES
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, Holdings of money market instruments 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 approved by the Board, and based on significant observable inputs (as described in Note 2A) are reflected as Level 2. For fair valuations using significant unobservable inputs, the Trust provides 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 and out of Level 3 during the period. Transfers in and out of Level 3 are based on values at end of period. The Trust also provides the amounts and reasons for significant transfers, if any, between Level 1 and Level 2 in the fair value hierarchy (see Note 2G). For the six-month period ended September 30, 2010, there were no significant transfers between Level 1 and Level 2. A summary of each Fund’s Holdings as of September 30, 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.
D-11
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
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.
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 incorporate 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 generally comprise two main categories: 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.
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.
D-12
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
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.
12. DERIVATIVE INVESTMENT HOLDINGS CATEGORIZED BY RISK EXPOSURE
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.
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
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NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
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 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.
Derivative Instruments
In addition to managing the market risks described above, certain Funds, if permitted by their investment objectives, may also invest in derivatives for purposes of hedging, duration management, as a substitute for securities, to increase returns, or to otherwise help achieve a Fund’s investment goal. Each derivative instrument and the reasons the Funds invested in derivatives during the period are discussed in further detail below. As part of their investment strategies, the PL Inflation Managed and PL Managed Bond Funds may invest a substantial portion of their assets in derivatives, sometimes to the maximum amount of derivative positions permitted for mutual funds.
Futures Contracts
A futures contract is a commitment to buy or sell a specific amount of a financial instrument or commodity at a negotiated price on a specified future date. Futures contracts are 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. During the reporting period, the Funds entered into futures contracts for the following reasons: The PL Short Duration Bond Fund used Treasury and Eurodollar futures contracts to manage interest rate risk. The PL International Value Fund used futures contracts to maintain full exposure to the equity markets. The PL Inflation
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(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
Managed and PL Managed Bond Funds used financial and money market futures to manage exposure to securities markets and/or to manage interest rate risk.
Options Contracts
An options contract is a commitment that gives the purchaser of the contract the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a specified future date. In turn, the writer of an options contract is obligated, upon the exercise of the option, to buy or sell an underlying asset at a specific price on or before a specified future date. A swaption is an option contract granting the owner the right to enter into an underlying swap. 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.
During the reporting period, the Funds entered into options contracts for the following reasons: The PL Inflation Managed and PL Managed Bond Funds sold/wrote options and swaptions on futures, currencies, and swaps, as a means of capitalizing on anticipated changes in market volatility and to generate income.
Forward Foreign Currency Contracts
A forward foreign currency contract (“Forward Contract”) is a commitment to buy or sell a specific amount of a foreign currency at a negotiated price on a specified future date. 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.
During the reporting period, the Funds entered into forward foreign currency contracts for the following reasons: The PL International Value Fund used forward foreign currency contracts for hedging purposes to insulate the Fund’s returns against adverse currency movements. The PL Inflation Managed and PL Managed Bond Funds used forward foreign currency contracts in connection with settling planned purchases or sales of securities, to hedge against currency exposure associated with some or all of each Fund’s securities and as a part of each Fund’s investment strategy.
Swaps
Swaps are privately negotiated agreements between the Funds and its counterparties to exchange cash flows, assets, foreign currencies or market-linked returns at specified intervals. 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. 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.
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NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
Interest Rate Swaps
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.
Certain Funds hold fixed rate bonds whose value 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 enter into interest rate swap agreements.
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.
During the reporting period, the Funds entered into interest rate swap contracts for the following reasons: The PL Inflation Managed and PL Managed Bond Funds entered into interest rate swaps to manage nominal or real interest rate risk in various global markets and as a substitute for cash bond exposure.
Credit Default Swaps
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.
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.
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 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
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NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
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 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 September 30, 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.
During the reporting period, the Funds entered into credit default swap contracts for the following reasons: The PL Inflation Managed and PL Managed Bond Funds sold credit protection through credit default swaps to increase exposure to the credit risk of individual securities or to the broader investment grade, high yield, or emerging market through the use of credit default swaps on credit indices. Both Funds also purchased credit protection to reduce credit exposure to individual issuers, reduce broader credit risk, or to take advantage of the basis between the credit default swap and cash bond market.
For financial reporting purposes, 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, The derivative investment Holdings as of September 30, 2010 as disclosed in the Notes to Schedules of Investments and the amounts of realized gains and losses and changes in unrealized appreciation and depreciation on derivative investment Holdings during the six-month period ending September 30, 2010 as disclosed in the Statements of Operations serve as indicators of the volume of derivative activity for the Funds.
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NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
The following is a summary of the location of fair value amounts of derivative investments on the Trust’s Statements of Assets and Liabilities:
Location on the Statements of Assets and Liabilities | ||||
Derivative Investments Type | Asset Derivative Investments | Liability Derivative Investments | ||
Interest rate contracts | Investments, at value | Outstanding options written, at value | ||
Receivable: Variation margin | Payable: Variation margin | |||
Swap contracts, at value | Swap contracts, at value | |||
Foreign exchange contracts | Investments, at value | Outstanding options written, at value | ||
Receivable: Variation margin | Payable: Variation margin | |||
Forward foreign currency contracts appreciation | Forward foreign currency contracts depreciation | |||
Location on the Statements of Assets and Liabilities | ||||
Derivative Investments Type | Asset Derivative Investments | Liability Derivative Investments | ||
Credit contracts | Swap contracts, at value | Swap contracts, at value | ||
Equity contracts | Investments, at value | Outstanding options written, at value | ||
Receivable: Variation margin | Payable: Variation margin |
The Trust records its derivatives at fair value. The Trust does not use hedge accounting under U.S. GAAP. 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 U.S. GAAP. The following is a summary of each Fund’s derivative investments not accounted for as hedging investments under U.S. GAAP, categorized by primary risk exposure as of September 30, 2010:
Asset Derivative Investments Value | ||||||||||||||||||||
Interest | Foreign | |||||||||||||||||||
Total Value at | Equity | Rate | Credit | Exchange | ||||||||||||||||
Fund | September 30, 2010 | Contracts | Contracts | Contracts | Contracts | |||||||||||||||
PL Inflation Managed | $ | 526,707 | $ | — | $ | 344,886 | * | $ | 47,508 | $ | 134,313 | |||||||||
PL Managed Bond | 2,824,354 | — | 977,539 | * | 1,016,566 | 830,249 | ||||||||||||||
PL Short Duration Bond | 52,110 | — | 52,110 | * | — | — | ||||||||||||||
PL Growth LT | 14,691 | — | — | — | 14,691 | |||||||||||||||
PL International Value | 44 | — | — | — | 44 | |||||||||||||||
Liability Derivative Investments Value | ||||||||||||||||||||
Interest | Foreign | |||||||||||||||||||
Total Value at | Equity | Rate | Credit | Exchange | ||||||||||||||||
Fund | September 30, 2010 | Contracts | Contracts | Contracts | Contracts | |||||||||||||||
PL Inflation Managed | $ | (790,374 | ) | $ | — | $ | (238,295 | ) | $ | (53,344 | ) | $ | (498,735 | ) | ||||||
PL Managed Bond | (1,940,634 | ) | — | (1,158,320 | ) | (50,660 | ) | (731,654 | ) | |||||||||||
PL Short Duration Bond | (46,714 | ) | — | (46,714) | * | — | — | |||||||||||||
PL Growth LT | (97,196 | ) | — | — | — | (97,196 | ) | |||||||||||||
PL International Value | (25,895 | ) | (8,469) | * | — | — | (17,426 | ) |
* | 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 realized gains and losses and changes in unrealized appreciation and depreciation of derivative investments on the Trust’s Statements of Operations:
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 | ||
Change in net unrealized appreciation (depreciation) on futures contracts and swaps | ||
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 |
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PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
The following is a summary of each Fund’s realized gain and/or loss and change in unrealized appreciation and/or depreciation on derivative investments recognized in the Statements of Operations categorized by primary risk exposure as of September 30, 2010:
Realized Gain (Loss) on Derivative Investments Recognized in the Statements of Operations | ||||||||||||||||||||
Interest | Foreign | |||||||||||||||||||
Equity | Rate | Credit | Exchange | |||||||||||||||||
Fund | Total | Contracts | Contracts | Contracts | Contracts | |||||||||||||||
PL Inflation Managed | $ | 1,024,130 | $ | — | $ | 379,458 | $ | 31,021 | $ | 613,651 | ||||||||||
PL Managed Bond | 5,983,567 | — | 5,634,257 | 103,368 | 245,942 | |||||||||||||||
PL Short Duration Bond | (19,264 | ) | — | (19,264 | ) | — | — | |||||||||||||
PL Growth LT | 144,657 | — | — | — | 144,657 | |||||||||||||||
PL International Value | 247,668 | 20,669 | — | — | 226,999 | |||||||||||||||
Change in Unrealized Appreciation (Depreciation) on | ||||||||||||||||||||
Derivative Investments Recognized in the Statements of Operations | ||||||||||||||||||||
Interest | Foreign | |||||||||||||||||||
Equity | Rate | Credit | Exchange | |||||||||||||||||
Fund | Total | Contracts | Contracts | Contracts | Contracts | |||||||||||||||
PL Inflation Managed | $ | (843,425 | ) | $ | — | $ | (187,794 | ) | $ | 22,383 | $ | (678,014 | ) | |||||||
PL Managed Bond | (2,025,951 | ) | — | (1,942,960 | ) | (45,661 | ) | (37,330 | ) | |||||||||||
PL Short Duration Bond | (11,538 | ) | — | (11,538 | ) | — | — | |||||||||||||
PL Growth LT | (203,070 | ) | — | — | — | (203,070 | ) | |||||||||||||
PL International Value | (32,467 | ) | (15,085 | ) | — | — | (17,382 | ) |
13. 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 Floating Rate | PL Inflation | PL Managed | PL Short Duration | |||||||||||||||||||||||||||||
Loan Fund (1) | Managed Fund (1) | Bond Fund (1) | Bond Fund (1) | |||||||||||||||||||||||||||||
Period ended | Year ended | Period ended | Year ended | Period ended | Year ended | Period ended | Year ended | |||||||||||||||||||||||||
9/30/2010 | 3/31/2010 | 9/30/2010 | 3/31/2010 | 9/30/2010 | 3/31/2010 | 9/30/2010 | 3/31/2010 | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Shares sold | 783,698 | 2,282,633 | 1,956,632 | 6,378,988 | 3,125,323 | 7,234,283 | 1,426,601 | 3,533,144 | ||||||||||||||||||||||||
Dividends and distribution reinvested | 59,430 | 210,756 | 192,834 | 462,500 | 476,813 | 1,283,200 | 22,578 | 120,785 | ||||||||||||||||||||||||
Shares repurchased | (26,716 | ) | (515,930 | ) | (481,900 | ) | (518,710 | ) | (717,827 | ) | (765,659 | ) | (94,972 | ) | (973,595 | ) | ||||||||||||||||
Converted to Class P shares | (6,194,222 | ) | — | (16,468,262 | ) | — | (24,830,341 | ) | — | (8,923,737 | ) | — | ||||||||||||||||||||
Net increase (decrease) | (5,377,810 | ) | 1,977,459 | (14,800,696 | ) | 6,322,778 | (21,946,032 | ) | 7,751,824 | (7,569,530 | ) | 2,680,334 | ||||||||||||||||||||
Beginning shares outstanding | 5,377,810 | 3,400,351 | 14,800,696 | 8,477,918 | 21,946,032 | 14,194,208 | 7,569,530 | 4,889,196 | ||||||||||||||||||||||||
Ending shares outstanding | — | 5,377,810 | — | 14,800,696 | — | 21,946,032 | — | 7,569,530 | ||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||
Shares sold | 722,433 | 1,042,973 | 2,537,876 | 859,331 | ||||||||||||||||||||||||||||
Dividends and distributions reinvested | — | — | — | — | ||||||||||||||||||||||||||||
Shares repurchased | (66,020 | ) | (970,466 | ) | (784,949 | ) | (819,312 | ) | ||||||||||||||||||||||||
Converted from Class A shares | 6,194,222 | 16,468,262 | 24,830,341 | 8,923,737 | ||||||||||||||||||||||||||||
Net increase | 6,850,635 | 16,540,769 | 26,583,268 | 8,963,756 | ||||||||||||||||||||||||||||
Beginning shares outstanding | — | — | — | — | ||||||||||||||||||||||||||||
Ending shares outstanding | 6,850,635 | 16,540,769 | 26,583,268 | 8,963,756 | ||||||||||||||||||||||||||||
PL Comstock | PL Growth | PL Large-Cap | PL Large-Cap | |||||||||||||||||||||||||||||
Fund (1) | LT Fund (1) | Growth Fund (1) | Value Fund (1) | |||||||||||||||||||||||||||||
Period ended | Year ended | Period ended | Year ended | Period ended | Year ended | Period ended | Year ended | |||||||||||||||||||||||||
9/30/2010 | 3/31/2010 | 9/30/2010 | 3/31/2010 | 9/30/2010 | 3/31/2010 | 9/30/2010 | 3/31/2010 | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Shares sold | 840,641 | 1,887,392 | 515,246 | 1,279,195 | 565,551 | 5,211,526 | 1,490,054 | 7,070,227 | ||||||||||||||||||||||||
Dividends and distributions reinvested | 25,075 | 111,723 | — | 161,723 | — | — | 51,066 | 179,933 | ||||||||||||||||||||||||
Shares repurchased | (199,075 | ) | (787,611 | ) | (175,781 | ) | (3,057,754 | ) | (200,745 | ) | (323,434 | ) | (329,474 | ) | (242,469 | ) | ||||||||||||||||
Converted to Class P shares | (12,653,081 | ) | — | (8,299,570 | ) | — | (8,286,576 | ) | — | (16,781,975 | ) | — | ||||||||||||||||||||
Net increase (decrease) | (11,986,440 | ) | 1,211,504 | (7,960,105 | ) | (1,616,836 | ) | (7,921,770 | ) | 4,888,092 | (15,570,329 | ) | 7,007,691 | |||||||||||||||||||
Beginning shares outstanding | 11,986,440 | 10,774,936 | 7,960,105 | 9,576,941 | 7,921,770 | 3,033,678 | 15,570,329 | 8,562,638 | ||||||||||||||||||||||||
Ending shares outstanding | — | 11,986,440 | — | 7,960,105 | — | 7,921,770 | — | 15,570,329 | ||||||||||||||||||||||||
(1) | Class A shares were converted to Class P shares on July 2, 2010 (see Note 1 to Financial Statements). |
D-19
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
PL Comstock | PL Growth | PL Large-Cap | PL Large-Cap | |||||||||||||||||||||||||||||
Fund (1) | LT Fund (1) | Growth Fund (1) | Value Fund (1) | |||||||||||||||||||||||||||||
Period ended | Year ended | Period ended | Year ended | Period ended | Year ended | Period ended | Year ended | |||||||||||||||||||||||||
9/30/2010 | 3/31/2010 | 9/30/2010 | 3/31/2010 | 9/30/2010 | 3/31/2010 | 9/30/2010 | 3/31/2010 | |||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||
Shares sold | 1,079,888 | 691,794 | 2,933,999 | 2,404,096 | ||||||||||||||||||||||||||||
Dividends and distributions reinvested | — | — | — | — | ||||||||||||||||||||||||||||
Shares repurchased | (332,027 | ) | (61,573 | ) | (136,932 | ) | (250,548 | ) | ||||||||||||||||||||||||
Converted from Class A shares | 12,653,081 | 8,299,570 | 8,286,576 | 16,781,975 | ||||||||||||||||||||||||||||
Net increase | 13,400,942 | 8,929,791 | 11,083,643 | 18,935,523 | ||||||||||||||||||||||||||||
Beginning shares outstanding | — | — | — | — | ||||||||||||||||||||||||||||
Ending shares outstanding | 13,400,942 | 8,929,791 | 11,083,643 | 18,935,523 | ||||||||||||||||||||||||||||
PL Main Street | PL Mid-Cap | PL Mid-Cap | PL Small-Cap | |||||||||||||||||||||||||||||
Core Fund (1) | Equity Fund (1) | Growth Fund (1) | Growth Fund (1) | |||||||||||||||||||||||||||||
Period ended | Year ended | Period ended | Year ended | Period ended | Year ended | Period ended | Year ended | |||||||||||||||||||||||||
9/30/2010 | 3/31/2010 | 9/30/2010 | 3/31/2010 | 9/30/2010 | 3/31/2010 | 9/30/2010 | 3/31/2010 | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Shares sold | 1,015,605 | 3,174,195 | 949,982 | 1,214,393 | 117,550 | 3,175,797 | 27,664 | 501,380 | ||||||||||||||||||||||||
Dividends and distributions reinvested | 12,032 | 127,649 | 5,986 | 56,832 | 66,283 | 76,838 | — | — | ||||||||||||||||||||||||
Shares repurchased | (18,854 | ) | (1,035,627 | ) | (377,103 | ) | (631,044 | ) | (620,970 | ) | (507,051 | ) | (234,932 | ) | (1,862,567 | ) | ||||||||||||||||
Converted to P shares | (17,231,149 | ) | — | (12,316,799 | ) | — | (6,101,628 | ) | — | (2,523,721 | ) | — | ||||||||||||||||||||
Net increase (decrease) | (16,222,366 | ) | 2,266,217 | (11,737,934 | ) | 640,181 | (6,538,765 | ) | 2,745,584 | (2,730,989 | ) | (1,361,187 | ) | |||||||||||||||||||
Beginning shares outstanding | 16,222,366 | 13,956,149 | 11,737,934 | 11,097,753 | 6,538,765 | 3,793,181 | 2,730,989 | 4,092,176 | ||||||||||||||||||||||||
Ending shares outstanding | — | 16,222,366 | — | 11,737,934 | — | 6,538,765 | — | 2,730,989 | ||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||
Shares sold | 843,420 | 986,658 | 288,310 | 468,420 | ||||||||||||||||||||||||||||
Dividends and distributions reinvested | — | — | — | — | ||||||||||||||||||||||||||||
Shares repurchased | (3,185,738 | ) | (147,972 | ) | (733,150 | ) | (8,271 | ) | ||||||||||||||||||||||||
Converted from Class A shares | 17,231,149 | 12,316,799 | 6,101,628 | 2,523,721 | ||||||||||||||||||||||||||||
Net increase | 14,888,831 | 13,155,485 | 5,656,788 | 2,983,870 | ||||||||||||||||||||||||||||
Beginning shares outstanding | — | — | — | — | ||||||||||||||||||||||||||||
Ending shares outstanding | 14,888,831 | 13,155,485 | 5,656,788 | 2,983,870 | ||||||||||||||||||||||||||||
PL Small-Cap | PL Real Estate | PL Emerging | PL International | |||||||||||||||||||||||||||||
Value Fund (1) | Fund (1) | Markets Fund (1) | Large-Cap Fund (1) | |||||||||||||||||||||||||||||
Period ended | Year ended | Period ended | Year ended | Period ended | Year ended | Period ended | Year ended | |||||||||||||||||||||||||
9/30/2010 | 3/31/2010 | 9/30/2010 | 3/31/2010 | 9/30/2010 | 3/31/2010 | 9/30/2010 | 3/31/2010 | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Shares sold | 157,009 | 681,735 | 18,349 | 865,460 | 64,136 | 543,076 | 899,940 | 1,665,396 | ||||||||||||||||||||||||
Dividends and distributions reinvested | 8,614 | 63,819 | 7,759 | 63,259 | — | 20,636 | 76,898 | 86,240 | ||||||||||||||||||||||||
Shares repurchased | (160,735 | ) | (1,213,361 | ) | (423,437 | ) | (1,515,147 | ) | (7,619 | ) | (1,365,816 | ) | (104,013 | ) | (1,045,692 | ) | ||||||||||||||||
Converted to P shares | (4,458,487 | ) | — | (3,535,609 | ) | — | (3,969,965 | ) | — | (8,682,775 | ) | — | ||||||||||||||||||||
Net increase (decrease) | (4,453,599 | ) | (467,807 | ) | (3,932,938 | ) | (586,428 | ) | (3,913,448 | ) | (802,104 | ) | (7,809,950 | ) | 705,944 | |||||||||||||||||
Beginning shares outstanding | 4,453,599 | 4,921,406 | 3,932,938 | 4,519,366 | 3,913,448 | 4,715,552 | 7,809,950 | 7,104,006 | ||||||||||||||||||||||||
Ending shares outstanding | — | 4,453,599 | — | 3,932,938 | — | 3,913,448 | — | 7,809,950 | ||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||
Shares sold | 2,704,705 | 299,330 | 224,238 | 529,578 | ||||||||||||||||||||||||||||
Dividends and distributions reinvested | — | — | — | — | ||||||||||||||||||||||||||||
Shares repurchased | (39,533 | ) | (260,966 | ) | (381,569 | ) | (595,217 | ) | ||||||||||||||||||||||||
Converted from Class A shares | 4,458,487 | 3,535,609 | 3,969,965 | 8,682,775 | ||||||||||||||||||||||||||||
Net increase | 7,123,659 | 3,573,973 | 3,812,634 | 8,617,136 | ||||||||||||||||||||||||||||
Beginning shares outstanding | — | — | — | — | ||||||||||||||||||||||||||||
Ending shares outstanding | 7,123,659 | 3,573,973 | 3,812,634 | 8,617,136 | ||||||||||||||||||||||||||||
(1) | Class A shares were converted to Class P shares on July 2, 2010 (see Note 1 to Financial Statements). |
D-20
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
PL International | ||||||||
Value Fund (1) | ||||||||
Period ended | Year ended | |||||||
9/30/2010 | 3/31/2010 | |||||||
Class A | ||||||||
Shares sold | 1,269,450 | 2,094,735 | ||||||
Dividends and distributions reinvested | 61,755 | 153,540 | ||||||
Shares repurchased | (170,122 | ) | (5,667,580 | ) | ||||
Converted to P shares | (10,552,384 | ) | — | |||||
Net decrease | (9,391,301 | ) | (3,419,305 | ) | ||||
Beginning shares outstanding | 9,391,301 | 12,810,606 | ||||||
Ending shares outstanding | — | 9,391,301 | ||||||
Class P | ||||||||
Shares sold | 553,649 | |||||||
Dividends and distributions reinvested | — | |||||||
Shares repurchased | (1,815,420 | ) | ||||||
Converted from Class A shares | 10,552,384 | |||||||
Net increase | 9,290,613 | |||||||
Beginning shares outstanding | — | |||||||
Ending shares outstanding | 9,290,613 | |||||||
(1) | Class A shares were converted to Class P shares on July 2, 2010 (see Note 1 to Financial Statements). |
14. 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.
D-21
PACIFIC LIFE FUNDS
DISCLOSURE OF FUND EXPENSES
(Unaudited)
(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 April 1, 2010 to September 30, 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 09/30/10” 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 04/01/10-09/30/10” 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 April 1, 2010 to September 30, 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 04/01/10-09/30/10.”
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 | 04/01/10 - | |||||||||||||
04/01/10 | 09/30/10 | Ratio | 09/30/10 | |||||||||||||
PL Floating Rate Loan Fund (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
$ | 1,000.00 | $ | 1,008.00 | 1.03 | % | $ | 5.18 | |||||||||
Hypothetical | ||||||||||||||||
$ | 1,000.00 | $ | 1,019.90 | 1.03 | % | $ | 5.22 | |||||||||
PL Inflation Managed Fund (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
$ | 1,000.00 | $ | 1,076.20 | 0.74 | % | $ | 3.85 | |||||||||
Hypothetical | ||||||||||||||||
$ | 1,000.00 | $ | 1,021.36 | 0.74 | % | $ | 3.75 | |||||||||
PL Managed Bond Fund (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
$ | 1,000.00 | $ | 1,064.00 | 0.74 | % | $ | 3.83 | |||||||||
Hypothetical | ||||||||||||||||
$ | 1,000.00 | $ | 1,021.36 | 0.74 | % | $ | 3.75 | |||||||||
PL Short Duration Bond Fund (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
$ | 1,000.00 | $ | 1,013.70 | 0.74 | % | $ | 3.74 | |||||||||
Hypothetical | ||||||||||||||||
$ | 1,000.00 | $ | 1,021.36 | 0.74 | % | $ | 3.75 | |||||||||
PL Comstock Fund (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
$ | 1,000.00 | $ | 975.70 | 1.10 | % | $ | 5.45 | |||||||||
Hypothetical | ||||||||||||||||
$ | 1,000.00 | $ | 1,019.55 | 1.10 | % | $ | 5.57 | |||||||||
PL Growth LT Fund (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
$ | 1,000.00 | $ | 988.40 | 0.90 | % | $ | 4.49 | |||||||||
Hypothetical | ||||||||||||||||
$ | 1,000.00 | $ | 1,020.56 | 0.90 | % | $ | 4.56 | |||||||||
PL Large-Cap Growth Fund (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
$ | 1,000.00 | $ | 1,011.70 | 1.05 | % | $ | 5.30 | |||||||||
Hypothetical | ||||||||||||||||
$ | 1,000.00 | $ | 1,019.80 | 1.05 | % | $ | 5.32 | |||||||||
PL Large-Cap Value Fund (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
$ | 1,000.00 | $ | 966.50 | 0.99 | % | $ | 4.88 | |||||||||
Hypothetical | ||||||||||||||||
$ | 1,000.00 | $ | 1,020.10 | 0.99 | % | $ | 5.01 |
See explanation of references on page E-2
E-1
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 | 04/01/10 - | |||||||||||||
04/01/10 | 09/30/10 | Ratio | 09/30/10 | |||||||||||||
PL Main Street Core Fund (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
$ | 1,000.00 | $ | 995.10 | 0.81 | % | $ | 4.05 | |||||||||
Hypothetical | ||||||||||||||||
$ | 1,000.00 | $ | 1,021.01 | 0.81 | % | $ | 4.10 | |||||||||
PL Mid-Cap Equity Fund (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
$ | 1,000.00 | $ | 1,027.10 | 0.99 | % | $ | 5.03 | |||||||||
Hypothetical | ||||||||||||||||
$ | 1,000.00 | $ | 1,020.10 | 0.99 | % | $ | 5.01 | |||||||||
PL Mid-Cap Growth Fund (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
$ | 1,000.00 | $ | 1,117.40 | 1.06 | % | $ | 5.63 | |||||||||
Hypothetical | ||||||||||||||||
$ | 1,000.00 | $ | 1,019.75 | 1.06 | % | $ | 5.37 | |||||||||
PL Small-Cap Growth Fund (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
$ | 1,000.00 | $ | 1,019.10 | 0.95 | % | $ | 4.81 | |||||||||
Hypothetical | ||||||||||||||||
$ | 1,000.00 | $ | 1,020.31 | 0.95 | % | $ | 4.81 | |||||||||
PL Small-Cap Value Fund (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
$ | 1,000.00 | $ | 1,033.50 | 1.06 | % | $ | 5.40 | |||||||||
Hypothetical | ||||||||||||||||
$ | 1,000.00 | $ | 1,019.75 | 1.06 | % | $ | 5.37 | |||||||||
PL Real Estate Fund (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
$ | 1,000.00 | $ | 1,092.20 | 1.25 | % | $ | 6.56 | |||||||||
Hypothetical | ||||||||||||||||
$ | 1,000.00 | $ | 1,018.80 | 1.25 | % | $ | 6.33 | |||||||||
PL Emerging Markets Fund (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
$ | 1,000.00 | $ | 1,132.10 | 1.15 | % | $ | 6.15 | |||||||||
Hypothetical | ||||||||||||||||
$ | 1,000.00 | $ | 1,019.30 | 1.15 | % | $ | 5.82 | |||||||||
PL International Large-Cap Fund (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
$ | 1,000.00 | $ | 1,015.50 | 1.19 | % | $ | 6.01 | |||||||||
Hypothetical | ||||||||||||||||
$ | 1,000.00 | $ | 1,019.10 | 1.19 | % | $ | 6.02 | |||||||||
PL International Value Fund (2) | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
$ | 1,000.00 | $ | 974.10 | 1.00 | % | $ | 4.95 | |||||||||
Hypothetical | ||||||||||||||||
$ | 1,000.00 | $ | 1,020.05 | 1.00 | % | $ | 5.06 |
(1) | Expenses paid during the six-month 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 Underlying Funds currently offer Class P shares only. Effective July 2, 2010, all Class A shares of the Underlying Funds were converted to Class P shares. Performance information prior to the conversion pertains to Class A shares and reflects the fees and expenses associated with that share class. |
E-2
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.* The description below does not relate to the approvals at that meeting, but to an approval that occurred since that meeting during the fiscal period April 1, 2010 through September 30, 2010.
At an in-person meeting on September 14-15, 2010, the Board, including all of the Independent Trustees, approved a new Fund Management Agreement effective approximately January 1, 2011 with respect to the PL International Value Fund (“J.P. Morgan Fund Management Agreement”).
In evaluating the J.P. Morgan Fund Management Agreement, the Board, including all of the Independent Trustees, considered the factors described below. The Board also considered, as applicable, the various screening processes that PLFA utilizes in proposing new fund managers, including screening for qualified firms through the use of quantitative data and information gathered from independent third-party databases, as well as 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 the new Fund Manager, J.P. Morgan, including, as applicable, information about other firms considered by PLFA and reviewed PLFA’s analysis in reaching its conclusion to recommend the new Fund Manager, which was ultimately approved by the Board.
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 J.P. Morgan Fund Management Agreement. 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 J.P. Morgan Fund Management Agreement, and in the case of the Independent Trustees, in light of the legal advice furnished to them by independent legal counsel. This discussion is not intended to be all-inclusive.
Approval of J.P. Morgan Fund Management Agreement
Under the 1940 Act, a change in fund manager requires shareholder approval of a new fund management agreement; however, pursuant to an exemptive order issued to Pacific Life Insurance Company by the Securities and Exchange Commission (“SEC”) on October 13, 1999 and relied upon by the Trust and PLFA, in accordance with the terms of the exemptive order, PLFA and the Trust 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.
At an in-person meeting on September 14-15, 2010, the Board, including all of the Independent Trustees, approved, effective January 1, 2011, the J.P. Morgan Fund Management Agreement for the PL International Value Fund, and J.P. Morgan Investment Management, Inc. (“J.P. Morgan”) was appointed as the new Fund Manager. In connection with this matter, also at the September 15, 2010 meeting, the Board terminated the fund management agreement for the Fund with the current fund manager upon the effectiveness of the J.P. Morgan Fund Management Agreement. The appointment of J.P. Morgan as Fund Manager was made in accordance with the SEC exemptive order noted above and did not require shareholder approval.
In evaluating the J.P. Morgan 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 J.P. Morgan as the Fund Manager, particularly in light of the nature, extent, and quality of the services expected to be provided by J.P. Morgan. In this regard, the Trustees considered various materials relating to the proposed Fund Manager, including copies of the proposed J.P. Morgan Fund Management Agreement; copies of the Form ADV for J.P. Morgan; financial information relating to J.P. Morgan; and other information deemed relevant to the Trustees’ evaluation of J.P. Morgan, including qualitative assessments from senior management of PLFA.
* | 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. |
E-3
PACIFIC LIFE FUNDS
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
AND FUND MANAGEMENT AGREEMENTS (Continued)
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
AND FUND MANAGEMENT AGREEMENTS (Continued)
(Unaudited)
The Trustees considered that under the J.P. Morgan Fund Management Agreement, J.P. Morgan 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 International Value Fund over both the short- and long-term, the organizational depth and resources of J.P. Morgan, including the background and experience of J.P. Morgan’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 J.P. Morgan, 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 J.P. Morgan Fund Management Agreement.
In making these assessments, the Trustees took note of the extensive due diligence PLFA conducted on J.P. Morgan and were aided by the assessments and recommendations of PLFA and the in-person presentation and materials provided by J.P. Morgan. The Trustees considered PLFA’s efforts and process to search for and screen advisory firms that are qualified to manage an international value portfolio and the identification by PLFA of J.P. Morgan to serve as Fund Manager with regard to the day-to-day investment activities of the PL International Value 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, the ability to manage a large pool of assets, competitive peer ranking, manager tenure and competitive sub-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 International Value Fund by J.P. Morgan under the J.P. Morgan Fund Management Agreement.
2. Performance
The Trustees considered information about the historical performance of a mutual fund investment company (the “Comparable Fund”) and a composite of investment funds and accounts (including the Comparable Fund) advised by the same J.P. Morgan portfolio management team that would manage the PL International Value Fund (together with the Comparable Fund, the “Comparable Performance”). The Trustees considered the Comparable Performance against a pertinent benchmark for the one-, three- and six-month periods as of June 30, 2010 as well as the one-, three- and five-year and since inception periods as of June 30, 2010. For the Comparable Fund performance, the Trustees considered the year-to-date, one-, three- and five-year periods as of June 30, 2010, against its Morningstar peer group and considered the annual performance returns against its Morningstar peer group for the previous seven calendar years. The Trustees also considered the need for J.P. Morgan to adhere to the Fund’s general investment mandate in order to function appropriately as an investment option for the PL Portfolio Optimization Funds.
The Board determined that J.P. Morgan’s performance record was acceptable.
3. Advisory and Fund Management Fees
The Trustees considered information regarding the comparative advisory fees charged under investment advisory fee contracts with regard to a mutual fund and other investment accounts (“Accounts”) with substantially similar investment strategies. The Trustees noted that the fees to be paid to J.P. Morgan for the management of the PL International Value Fund were different from the fees charged to other Accounts or that there were differences in the levels of services provided by J.P. Morgan to the other Accounts and that these differences were due to the nature of the Accounts or an affiliation between J.P. Morgan and the Accounts. These differences often explained the differences in fee schedules. The Trustees noted that the fee rates were the result of arms’-length negotiations between PLFA and J.P. Morgan, and that the PL International Value Fund’s sub-advisory management fees are paid by PLFA and are not paid directly by the Fund. The Trustees also considered that the proposed sub-advisory management fee rate payable to J.P. Morgan under the J.P. Morgan Fund Management Agreement contains breakpoints and is the same as the sub-advisory fee rate paid to the current fund manager. The Trustees considered that the advisory fee schedule would remain unchanged from the current fee schedule for the Fund. Additionally, the Trustees considered that there are certain costs associated with a manager change, but that the advisory fee rates and ongoing operating expenses paid by shareholders were not expected to increase as a result of this fund manager change. The Board concluded that the compensation payable under the J.P. Morgan Fund Management Agreement is fair and reasonable.
E-4
PACIFIC LIFE FUNDS
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
AND FUND MANAGEMENT AGREEMENTS (Continued)
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
AND FUND MANAGEMENT AGREEMENTS (Continued)
(Unaudited)
4. Costs, Level of Profits and Economies of Scale
The Trustees reviewed information regarding the estimated costs to J.P. Morgan of managing the PL International Value Fund and the projected profitability of the J.P. Morgan Fund Management Agreement to J.P. Morgan to the extent practicable based on the financial information provided by J.P. Morgan. This information is only estimated because there is no actual operating history for J.P. Morgan as the Fund Manager of the PL International Value Fund. The Trustees gave less weight to projected profitability considerations and did not view this information to be as important as other information provided in connection with this matter, given the arms’-length nature of the relationship between PLFA and J.P. Morgan with respect to 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 International Value Fund’s fee structure reflected in the J.P. Morgan Fund Management Agreement with respect to the PL International Value Fund is fair and reasonable.
5. Ancillary Benefits
The Trustees received information from PLFA concerning other benefits that may be received by J.P. Morgan and its affiliates as a result of their relationship with the PL International Value 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 J.P. Morgan represented that it does not anticipate utilizing an affiliated broker-dealer for trades but that it may use soft dollar credits generated by Fund commissions to pay for research services, provided that the commission paid is reasonable in relation to the value of the brokerage and research services provided. The Trustees considered potential benefits to be derived by J.P. Morgan from its relationship with the PL International Value 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 J.P. Morgan Fund Management Agreement is fair and reasonable; and (ii) the J.P. Morgan Fund Management Agreement is in the best interests of the PL International Value Fund and its shareholders. No single fact was determinative of the Board’s findings, but rather the Trustees based their determination on the total mix of information available to them.
E-5
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 the fund 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.
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 |
E-6
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
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 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 — Not applicable. | |
(a)(2) | Separate certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is 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 | |||||
President | ||||||
Date: | December 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 | |||||
Chief Executive Officer | ||||||
Date: | December 7, 2010 | |||||
By: | /s/ Mark W. Holmlund | |||||
Mark W. Holmlund | ||||||
President | ||||||
Date: | December 7, 2010 | |||||
By: | /s/ Brian D. Klemens | |||||
Brian D. Klemens | ||||||
Treasurer (Principal Financial and | ||||||
Accounting Officer) | ||||||
Date: | December 7, 2010 | |||||