UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-10385
Pacific Life Funds |
(Exact name of registrant as specified in charter) |
700 Newport Center Drive, P.O. Box 7500
Newport Beach, CA 92660 |
(Address of principal executive offices) (Zip code) |
Robin S. Yonis Vice President and General Counsel of Pacific Life Funds 700 Newport Center Drive, P.O. Box 9000 Newport Beach, CA 92660 |
(Name and address of agent for service) |
Copies to:
Anthony H. Zacharski, Esq.
Dechert LLP
90 State House Square
Hartford, CT 06103
Registrant’s telephone number, including area code: 949-219-6767
Date of fiscal year end: March 31
Date of reporting period: April 1, 2012 - September 30, 2012
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).
Semi-Annual Report as of September 30, 2012
PACIFIC LIFE FUNDS
A-1 | ||
Financial Statements: | ||
B-1 | ||
B-3 | ||
B-5 | ||
B-9 | ||
C-1 | ||
D-1 | ||
D-3 |
PACIFIC LIFE FUNDS PL PORTFOLIO OPTIMIZATION CONSERVATIVE FUND September 30, 2012 (Unaudited) | PACIFIC LIFE FUNDS PL PORTFOLIO OPTIMIZATION MODERATE-CONSERVATIVE FUND Schedule of Investments September 30, 2012 (Unaudited) |
Shares | Value | |||||||
AFFILIATED MUTUAL FUNDS - 99.9% | ||||||||
PL Floating Rate Loan Fund ‘P’ | 2,788,696 | $28,974,556 | ||||||
PL Inflation Managed Fund ‘P’ | 4,745,785 | 54,339,240 | ||||||
PL Managed Bond Fund ‘P’ | 14,827,487 | 169,626,447 | ||||||
PL Short Duration Bond Fund ‘P’ | 7,352,297 | 75,140,478 | ||||||
PL Emerging Markets Debt Fund ‘P’ * | 2,731,358 | 28,952,396 | ||||||
PL Comstock Fund ‘P’ | 1,720,799 | 21,991,806 | ||||||
PL Large-Cap Growth Fund ‘P’ | 969,931 | 9,980,590 | ||||||
PL Large-Cap Value Fund ‘P’ | 1,589,152 | 20,309,364 | ||||||
PL Main Street Core Fund ‘P’ | 802,627 | 9,206,134 | ||||||
PL Mid-Cap Equity Fund ‘P’ | 668,065 | 6,547,036 | ||||||
PL Mid-Cap Growth Fund ‘P’ | 886,651 | 7,155,276 | ||||||
PL International Large-Cap Fund ‘P’ | 984,302 | 14,754,682 | ||||||
PL International Value Fund ‘P’ | 1,097,442 | 9,218,509 | ||||||
|
| |||||||
Total Affiliated Mutual Funds | 456,196,514 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 99.9% | 456,196,514 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.1% | 424,300 | |||||||
|
| |||||||
NET ASSETS - 100.0% | $456,620,814 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Affiliated Fixed Income Funds | 78.2% | |||
Affiliated Equity Funds | 21.7% | |||
|
| |||
99.9% | ||||
Other Assets & Liabilities, Net | 0.1% | |||
|
| |||
100.0% | ||||
|
|
Shares | Value | |||||||
AFFILIATED MUTUAL FUNDS - 100.3% | ||||||||
PL Floating Rate Loan Fund ‘P’ | 2,552,085 | $26,516,160 | ||||||
PL Inflation Managed Fund ‘P’ | 3,715,794 | 42,545,838 | ||||||
PL Managed Bond Fund ‘P’ | 9,819,780 | 112,338,288 | ||||||
PL Short Duration Bond Fund ‘P’ | 5,222,495 | 53,373,895 | ||||||
PL Emerging Markets Debt Fund ‘P’ * | 1,346,670 | 14,274,698 | ||||||
PL Comstock Fund ‘P’ | 2,323,095 | 29,689,151 | ||||||
PL Growth LT Fund ‘P’ | 173,270 | 2,280,229 | ||||||
PL Large-Cap Growth Fund ‘P’ | 1,753,779 | 18,046,389 | ||||||
PL Large-Cap Value Fund ‘P’ | 2,995,500 | 38,282,493 | ||||||
PL Main Street Core Fund ‘P’ | 2,235,551 | 25,641,768 | ||||||
PL Mid-Cap Equity Fund ‘P’ | 894,927 | 8,770,287 | ||||||
PL Mid-Cap Growth Fund ‘P’ | 623,214 | 5,029,335 | ||||||
PL Small-Cap Growth Fund ‘P’ * | 502,735 | 5,922,222 | ||||||
PL Small-Cap Value Fund ‘P’ | 416,821 | 4,439,140 | ||||||
PL Emerging Markets Fund ‘P’ | 600,124 | 8,185,697 | ||||||
PL International Large-Cap Fund ‘P’ | 1,491,368 | 22,355,600 | ||||||
PL International Value Fund ‘P’ | 1,915,002 | 16,086,020 | ||||||
|
| |||||||
Total Affiliated Mutual Funds | 433,777,210 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 100.3% | 433,777,210 | |||||||
OTHER ASSETS & LIABILITIES, NET - (0.3%) | (1,133,511 | ) | ||||||
|
| |||||||
NET ASSETS - 100.0% | $432,643,699 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Affiliated Fixed Income Funds | 57.6% | |||
Affiliated Equity Funds | 42.7% | |||
|
| |||
100.3% | ||||
Other Assets & Liabilities, Net | (0.3% | ) | ||
|
| |||
100.0% | ||||
|
|
(b) | Fair Value Measurements |
The following is a summary of the funds’ investments as categorized under the three-tier hierarchy of inputs used in valuing the funds’ assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
PL Portfolio Optimization Conservative Fund | ||||||||||||||||||
Assets | Affiliated Mutual Funds | $456,196,514 | $456,196,514 | $— | $— | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||
PL Portfolio Optimization Moderate-Conservative Fund | ||||||||||||||||||
Assets | Affiliated Mutual Funds | $433,777,210 | $433,777,210 | $— | $— | |||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-23 |
A-1
PACIFIC LIFE FUNDS PL PORTFOLIO OPTIMIZATION MODERATE FUND Schedule of Investments September 30, 2012 (Unaudited) | PACIFIC LIFE FUNDS PL PORTFOLIO OPTIMIZATION MODERATE-AGGRESSIVE FUND Schedule of Investments September 30, 2012 (Unaudited) |
Shares | Value | |||||||
AFFILIATED MUTUAL FUNDS - 100.0% | ||||||||
PL Floating Rate Loan Fund ‘P’ | 4,243,959 | $44,094,731 | ||||||
PL Inflation Managed Fund ‘P’ | 5,067,771 | 58,025,975 | ||||||
PL Managed Bond Fund ‘P’ | 17,472,244 | 199,882,470 | ||||||
PL Short Duration Bond Fund ‘P’ | 7,803,725 | 79,754,072 | ||||||
PL Emerging Markets Debt Fund ‘P’ * | 3,104,564 | 32,908,377 | ||||||
PL Comstock Fund ‘P’ | 7,923,827 | 101,266,505 | ||||||
PL Growth LT Fund ‘P’ | 902,120 | 11,871,904 | ||||||
PL Large-Cap Growth Fund ‘P’ | 5,526,344 | 56,866,079 | ||||||
PL Large-Cap Value Fund ‘P’ | 10,079,695 | 128,818,506 | ||||||
PL Main Street Core Fund ‘P’ | 7,360,670 | 84,426,884 | ||||||
PL Mid-Cap Equity Fund ‘P’ | 5,138,467 | 50,356,975 | ||||||
PL Mid-Cap Growth Fund ‘P’ | 1,701,774 | 13,733,319 | ||||||
PL Small-Cap Growth Fund ‘P’ * | 1,109,837 | 13,073,882 | ||||||
PL Small-Cap Value Fund ‘P’ | 3,640,788 | 38,774,390 | ||||||
PL Real Estate Fund ‘P’ | 1,652,607 | 21,285,584 | ||||||
PL Emerging Markets Fund ‘P’ | 3,254,735 | 44,394,583 | ||||||
PL International Large-Cap Fund ‘P’ | 5,889,264 | 88,280,060 | ||||||
PL International Value Fund ‘P’ | 6,390,047 | 53,676,392 | ||||||
|
| |||||||
Total Affiliated Mutual Funds | 1,121,490,688 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 100.0% | 1,121,490,688 | |||||||
OTHER ASSETS & LIABILITIES, NET - (0.0%) |
| (99,860 | ) | |||||
|
| |||||||
NET ASSETS - 100.0% | $1,121,390,828 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Affiliated Equity Funds | 63.0% | |||
Affiliated Fixed Income Funds | 37.0% | |||
|
| |||
100.0% | ||||
Other Assets & Liabilities, Net | (0.0% | ) | ||
|
| |||
100.0% | ||||
|
|
Shares | Value | |||||||
AFFILIATED MUTUAL FUNDS - 100.1% | ||||||||
PL Inflation Managed Fund ‘P’ | 1,938,545 | $22,196,338 | ||||||
PL Managed Bond Fund ‘P’ | 6,810,754 | 77,915,020 | ||||||
PL Short Duration Bond Fund ‘P’ | 1,818,577 | 18,585,853 | ||||||
PL Emerging Markets Debt Fund ‘P’ * | 904,214 | 9,584,667 | ||||||
PL Comstock Fund ‘P’ | 6,666,324 | 85,195,620 | ||||||
PL Growth LT Fund ‘P’ | 1,604,195 | 21,111,202 | ||||||
PL Large-Cap Growth Fund ‘P’ | 3,785,488 | 38,952,671 | ||||||
PL Large-Cap Value Fund ‘P’ | 8,402,098 | 107,378,811 | ||||||
PL Main Street Core Fund ‘P’ | 6,078,899 | 69,724,976 | ||||||
PL Mid-Cap Equity Fund ‘P’ | 4,634,970 | 45,422,710 | ||||||
PL Mid-Cap Growth Fund ‘P’ | 3,039,396 | 24,527,927 | ||||||
PL Small-Cap Growth Fund ‘P’ * | 1,278,198 | 15,057,173 | ||||||
PL Small-Cap Value Fund ‘P’ | 4,316,593 | 45,971,719 | ||||||
PL Real Estate Fund ‘P’ | 1,779,264 | 22,916,920 | ||||||
PL Emerging Markets Fund ‘P’ | 2,872,235 | 39,177,290 | ||||||
PL International Large-Cap Fund ‘P’ | 4,651,994 | 69,733,387 | ||||||
PL International Value Fund ‘P’ | 6,389,022 | 53,667,783 | ||||||
|
| |||||||
Total Affiliated Mutual Funds | 767,120,067 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 100.1% | 767,120,067 | |||||||
OTHER ASSETS & LIABILITIES, NET - (0.1%) |
| (965,268 | ) | |||||
|
| |||||||
NET ASSETS - 100.0% | $766,154,799 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Affiliated Equity Funds | 83.4% | |||
Affiliated Fixed Income Funds | 16.7% | |||
|
| |||
100.1% | ||||
Other Assets & Liabilities, Net | (0.1% | ) | ||
|
| |||
100.0% | ||||
|
|
(b) | Fair Value Measurements |
The following is a summary of the funds’ investments as categorized under the three-tier hierarchy of inputs used in valuing the funds’ assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
PL Portfolio Optimization Moderate Fund | ||||||||||||||||||
Assets | Affiliated Mutual Funds | $1,121,490,688 | $1,121,490,688 | $— | $— | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||
PL Portfolio Optimization Moderate-Aggressive Fund | ||||||||||||||||||
Assets | Affiliated Mutual Funds | $767,120,067 | $767,120,067 | $— | $— | |||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-23 |
A-2
PACIFIC LIFE FUNDS
PL PORTFOLIO OPTIMIZATION AGGRESSIVE FUND
Schedule of Investments
September 30, 2012 (Unaudited)
Shares | Value | |||||||
AFFILIATED MUTUAL FUNDS - 100.1% | ||||||||
PL Managed Bond Fund ‘P’ | 696,593 | $7,969,019 | ||||||
PL Comstock Fund ‘P’ | 2,127,654 | 27,191,422 | ||||||
PL Growth LT Fund ‘P’ | 420,588 | 5,534,938 | ||||||
PL Large-Cap Growth Fund ‘P’ | 1,130,177 | 11,629,520 | ||||||
PL Large-Cap Value Fund ‘P’ | 2,766,413 | 35,354,763 | ||||||
PL Main Street Core Fund ‘P’ | 2,208,435 | 25,330,750 | ||||||
PL Mid-Cap Equity Fund ‘P’ | 1,772,844 | 17,373,870 | ||||||
PL Mid-Cap Growth Fund ‘P’ | 1,433,830 | 11,571,008 | ||||||
PL Small-Cap Growth Fund ‘P’ * | 831,605 | 9,796,300 | ||||||
PL Small-Cap Value Fund ‘P’ | 1,764,442 | 18,791,310 | ||||||
PL Real Estate Fund ‘P’ | 707,046 | 9,106,754 | ||||||
PL Emerging Markets Fund ‘P’ | 1,069,749 | 14,591,376 | ||||||
PL International Large-Cap Fund ‘P’ | 1,611,116 | 24,150,633 | ||||||
PL International Value Fund ‘P’ | 2,281,374 | 19,163,538 | ||||||
|
| |||||||
Total Affiliated Mutual Funds | 237,555,201 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 100.1% | 237,555,201 | |||||||
OTHER ASSETS & LIABILITIES, NET - (0.1%) | (221,455 | ) | ||||||
|
| |||||||
NET ASSETS - 100.0% | $237,333,746 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Affiliated Equity Funds | 96.7% | |||
Affiliated Fixed Income Fund | 3.4% | |||
|
| |||
100.1% | ||||
Other Assets & Liabilities, Net | (0.1% | ) | ||
|
| |||
100.0% | ||||
|
|
(b) | Fair Value Measurements |
The following is a summary of the fund’s investments as categorized under the three-tier hierarchy of inputs used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Affiliated Mutual Funds | $237,555,201 | $237,555,201 | $— | $— | |||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-23 |
A-3
PACIFIC LIFE FUNDS
PL SHORT DURATION INCOME FUND
Schedule of Investments
September 30, 2012 (Unaudited)
Principal | Value | |||||||
CORPORATE BONDS & NOTES - 72.0% |
| |||||||
Consumer Discretionary - 9.2% |
| |||||||
DIRECTV Holdings LLC | $250,000 | $263,438 | ||||||
DISH DBS Corp | 200,000 | 205,500 | ||||||
Dollar General Corp | 250,000 | 262,500 | ||||||
NBCUniversal Media LLC | 250,000 | 265,065 | ||||||
Virgin Media Secured Finance PLC (United Kingdom) | 250,000 | 275,000 | ||||||
Wyndham Worldwide Corp | 250,000 | 252,414 | ||||||
|
| |||||||
1,523,917 | ||||||||
|
| |||||||
Consumer Staples - 3.1% |
| |||||||
ConAgra Foods Inc | 250,000 | 254,110 | ||||||
Pernod-Ricard SA (France) | 250,000 | 261,140 | ||||||
|
| |||||||
515,250 | ||||||||
|
| |||||||
Energy - 16.0% |
| |||||||
Cameron International Corp | 250,000 | 253,592 | ||||||
Korea National Oil Corp (South Korea) | 250,000 | 263,365 | ||||||
Noble Holding International Ltd (Cayman) | 200,000 | 206,550 | ||||||
ONEOK Partners LP | 350,000 | 356,996 | ||||||
Petrobras International Finance Co (Cayman) | 350,000 | 360,614 | ||||||
Phillips 66 | 250,000 | 255,953 | ||||||
Pioneer Natural Resources Co | 200,000 | 228,081 | ||||||
Tesoro Corp | 100,000 | 103,250 | ||||||
Transocean Inc (Cayman) | 350,000 | 352,437 | ||||||
Williams Partners LP | 250,000 | 265,222 | ||||||
|
| |||||||
2,646,060 | ||||||||
|
| |||||||
Financials - 20.0% |
| |||||||
American International Group Inc | 100,000 | 101,137 | ||||||
Anglo American Capital PLC (United Kingdom) | 250,000 | 251,200 | ||||||
Bank of America Corp | 250,000 | 251,875 | ||||||
BRE Properties Inc REIT | 250,000 | 283,289 | ||||||
Capital One Financial Corp | 250,000 | 256,490 | ||||||
Citigroup Inc | 250,000 | 256,231 | ||||||
Commonwealth Bank of Australia (Australia) | 250,000 | 255,673 | ||||||
Daimler Finance North America LLC | 250,000 | 253,639 | ||||||
ERP Operating LP REIT | 250,000 | 255,419 | ||||||
Ford Motor Credit Co LLC | ||||||||
3.000% due 06/12/17 | 250,000 | 254,806 | ||||||
3.984% due 06/15/16 | 250,000 | 263,773 |
Principal | Value | |||||||
Hyundai Capital America | $250,000 | $250,306 | ||||||
SLM Corp | 100,000 | 103,125 | ||||||
Westfield Capital Corp (Multi-National) | 250,000 | 270,111 | ||||||
|
| |||||||
3,307,074 | ||||||||
|
| |||||||
Health Care - 4.6% |
| |||||||
Express Scripts Holding Co | 250,000 | 256,611 | ||||||
Watson Pharmaceuticals Inc | 250,000 | 253,143 | ||||||
Wellpoint Inc | 250,000 | 251,927 | ||||||
|
| |||||||
761,681 | ||||||||
|
| |||||||
Industrials - 7.5% |
| |||||||
Air Lease Corp | 150,000 | 150,750 | ||||||
Avis Budget Car Rental LLC | 100,000 | 100,000 | ||||||
Continental Airlines Pass-Through Certificates ‘B’ | 100,000 | 102,500 | ||||||
Delta Air Lines Pass-Through Trust ‘A’ | 250,000 | 261,250 | ||||||
International Lease Finance Corp | 250,000 | 263,150 | ||||||
The ADT Corp | 250,000 | 257,661 | ||||||
UR Merger Sub Corp | 100,000 | 105,875 | ||||||
|
| |||||||
1,241,186 | ||||||||
|
| |||||||
Information Technology - 3.1% |
| |||||||
Computer Sciences Corp | 250,000 | 253,901 | ||||||
Hewlett-Packard Co | 250,000 | 248,052 | ||||||
|
| |||||||
501,953 | ||||||||
|
| |||||||
Materials - 4.6% |
| |||||||
ArcelorMittal (Luxembourg) | 250,000 | 249,975 | ||||||
Rock-Tenn Co | 250,000 | 255,570 | ||||||
Xstrata Finance Ltd (Canada) | 250,000 | 257,163 | ||||||
|
| |||||||
762,708 | ||||||||
|
| |||||||
Telecommunication Services - 3.9% |
| |||||||
British Telecommunications PLC (United Kingdom) | 250,000 | 257,213 | ||||||
Intelsat Jackson Holdings SA (Luxembourg) | 250,000 | 270,000 | ||||||
Telesat LLC (Canada) | 100,000 | 104,500 | ||||||
|
| |||||||
631,713 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes | 11,891,542 | |||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-23 |
A-4
PACIFIC LIFE FUNDS
PL SHORT DURATION INCOME FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | Value | |||||||
SENIOR LOAN NOTES - 21.8% | ||||||||
Consumer Discretionary - 4.1% | ||||||||
Capital Automotive LP Tranche B | $236,430 | $238,203 | ||||||
Lord & Taylor Holdings LLC | 179,627 | 181,199 | ||||||
Wendy’s International Inc | 250,000 | 252,539 | ||||||
|
| |||||||
671,941 | ||||||||
|
| |||||||
Consumer Staples - 1.5% | ||||||||
Reynolds Group Holdings Inc Term B | 250,000 | 251,294 | ||||||
|
| |||||||
Energy - 1.5% | ||||||||
EP Energy LLC Tranche B-1 | 250,000 | 252,656 | ||||||
|
| |||||||
Health Care - 6.1% | ||||||||
Bausch & Lomb Inc (Parent) | 249,375 | 252,430 | ||||||
Hologic Inc Tranche B | 250,000 | 253,250 | ||||||
Valeant Pharmaceuticals International Inc Term B | 250,000 | 250,688 | ||||||
Warner Chilcott Co LLC | ||||||||
Term B-1 | 36,888 | 36,989 | ||||||
Term B-2 | 48,567 | 48,701 | ||||||
Warner Chilcott Corp Term B-1 | 97,134 | 97,401 | ||||||
WC Luxco SARL Term B-3 | 66,780 | 66,963 | ||||||
|
| |||||||
1,006,422 | ||||||||
|
| |||||||
Industrials - 5.6% | ||||||||
AWAS Finance Luxembourg SARL | 233,333 | 234,208 | ||||||
CSC Holdings LLC Term B-2 | 431,584 | 432,333 | ||||||
Flying Fortress Inc | 250,000 | 253,438 | ||||||
|
| |||||||
919,979 | ||||||||
|
| |||||||
Telecommunication Services - 3.0% | ||||||||
Windstream Corp Term B-3 | 498,750 | 501,655 | ||||||
|
| |||||||
Total Senior Loan Notes | 3,603,947 | |||||||
|
|
Principal | Value | |||||||
U.S. TREASURY OBLIGATIONS - 2.9% | ||||||||
U.S. Treasury Notes - 2.9% | ||||||||
0.250% due 11/30/13 | $50,000 | $50,033 | ||||||
0.875% due 11/30/16 | 175,000 | 177,885 | ||||||
1.375% due 12/31/18 | 250,000 | 257,617 | ||||||
|
| |||||||
Total U.S. Treasury Obligations | 485,535 | |||||||
|
| |||||||
| ||||||||
SHORT-TERM INVESTMENT - 9.4% | ||||||||
Money Market Fund - 9.4% | ||||||||
BlackRock Liquidity Funds Treasury | 1,547,741 | 1,547,741 | ||||||
|
| |||||||
Total Short-Term Investment | 1,547,741 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 106.1% | 17,528,765 | |||||||
OTHER ASSETS & LIABILITIES, NET - (6.1%) | (1,005,776 | ) | ||||||
|
| |||||||
NET ASSETS - 100.0% | $16,522,989 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Corporate Bonds & Notes | 72.0% | |||
Senior Loan Notes | 21.8% | |||
Short-Term Investment | 9.4% | |||
U.S. Treasury Obligations | 2.9% | |||
|
| |||
106.1% | ||||
Other Assets & Liabilities, Net | (6.1% | ) | ||
|
| |||
100.0% | ||||
|
|
(b) | As of September 30, 2012, the fund’s Standard & Poor’s quality ratings as a percentage of total fixed income investments were as follows: |
AA / U.S. Government & Agency Issues | 4.6% | |||
A | 11.3% | |||
BBB | 57.5% | |||
BB | 16.5% | |||
B | 7.6% | |||
Not Rated | 2.5% | |||
|
| |||
100.0% | ||||
|
|
(c) | Fair Value Measurements |
The following is a summary of the fund’s investments as categorized under the three-tier hierarchy of inputs used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Corporate Bonds & Notes | $11,891,542 | $— | $11,891,542 | $— | |||||||||||||
Senior Loan Notes | 3,603,947 | — | 3,603,947 | — | ||||||||||||||
U.S. Treasury Obligations | 485,535 | — | 485,535 | — | ||||||||||||||
Short-Term Investment | 1,547,741 | 1,547,741 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $17,528,765 | $1,547,741 | $15,981,024 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-23 |
A-5
PACIFIC LIFE FUNDS
PL INCOME FUND
Schedule of Investments
September 30, 2012 (Unaudited)
Principal | Value | |||||||
CORPORATE BONDS & NOTES - 72.7% |
| |||||||
Consumer Discretionary - 10.3% |
| |||||||
CBS Corp | $6,000,000 | $6,158,706 | ||||||
Comcast Corp | 1,750,000 | 1,882,057 | ||||||
DIRECTV Holdings LLC | 8,000,000 | 8,224,424 | ||||||
DISH DBS Corp | 2,500,000 | 2,568,750 | ||||||
Hyatt Hotels Corp | 3,000,000 | 3,194,703 | ||||||
6.875% due 08/15/19 ~ | 1,750,000 | 2,079,551 | ||||||
Kia Motors Corp (South Korea) | 2,500,000 | 2,631,968 | ||||||
Limited Brands Inc | 2,000,000 | 2,165,000 | ||||||
Marriott International Inc | 4,000,000 | 4,109,192 | ||||||
NBCUniversal Media LLC | 1,250,000 | 1,325,326 | ||||||
2.875% due 01/15/23 | 3,000,000 | 2,994,510 | ||||||
NVR Inc | 4,000,000 | 4,110,824 | ||||||
Viacom Inc | 3,500,000 | 3,829,962 | ||||||
Virgin Media Secured Finance PLC | 2,500,000 | 2,750,000 | ||||||
Wyndham Worldwide Corp | 3,000,000 | 3,028,965 | ||||||
|
| |||||||
51,053,938 | ||||||||
|
| |||||||
Consumer Staples - 5.0% |
| |||||||
Kraft Foods Group Inc | 5,000,000 | 5,154,370 | ||||||
Lorillard Tobacco Co | 3,500,000 | 3,533,589 | ||||||
Pernod-Ricard SA (France) | 4,500,000 | 4,910,238 | ||||||
Reynolds Group Issuer Inc | 2,500,000 | 2,503,125 | ||||||
SABMiller Holdings Inc | 8,000,000 | 8,377,920 | ||||||
|
| |||||||
24,479,242 | ||||||||
|
| |||||||
Energy - 14.6% |
| |||||||
Arch Coal Inc | 1,250,000 | 1,056,250 | ||||||
Cameron International Corp | 3,000,000 | 3,043,107 | ||||||
Cimarex Energy Co | 3,000,000 | 3,180,000 | ||||||
Devon Energy Corp | 4,250,000 | 4,337,992 | ||||||
Ensco PLC (United Kingdom) | 2,500,000 | 2,829,263 | ||||||
Key Energy Services Inc | 1,200,000 | 1,224,000 | ||||||
6.750% due 03/01/21 ~ | 300,000 | 304,500 | ||||||
Kinder Morgan Energy Partners LP | 4,000,000 | 4,128,144 | ||||||
Korea National Oil Corp (South Korea) | 4,000,000 | 4,213,844 | ||||||
Newfield Exploration Co | 2,000,000 | 2,245,000 | ||||||
Noble Holding International Ltd (Cayman) | 4,000,000 | 4,131,004 |
Principal | Value | |||||||
OGX Austria GmbH (Austria) | $1,000,000 | $872,500 | ||||||
ONEOK Partners LP | 5,500,000 | 5,609,939 | ||||||
Peabody Energy Corp | 2,250,000 | 2,261,250 | ||||||
Petrobras International Finance Co (Cayman) | 3,000,000 | 3,396,003 | ||||||
Phillips 66 | 5,000,000 | 5,296,295 | ||||||
Pioneer Natural Resources Co | 3,000,000 | 3,193,944 | ||||||
5.875% due 07/15/16 | 3,000,000 | 3,421,215 | ||||||
Plains Exploration & Production Co | 1,500,000 | 1,530,000 | ||||||
Samson Investment Co | 1,000,000 | 1,031,250 | ||||||
Schlumberger Investment SA (Luxembourg) | 5,000,000 | 4,961,330 | ||||||
Tesoro Corp | 1,500,000 | 1,548,750 | ||||||
Transocean Inc (Cayman) | 6,500,000 | 6,545,266 | ||||||
Weatherford International Ltd (Bermuda) | 2,000,000 | 2,096,096 | ||||||
|
| |||||||
72,456,942 | ||||||||
|
| |||||||
Financials - 19.2% |
| |||||||
American International Group Inc | 2,000,000 | 2,022,744 | ||||||
4.875% due 06/01/22 | 2,000,000 | 2,258,854 | ||||||
Anglo American Capital PLC (United Kingdom) | 2,000,000 | 2,009,598 | ||||||
4.125% due 09/27/22 ~ | 2,000,000 | 2,012,368 | ||||||
Bank of America Corp | 1,000,000 | 1,176,998 | ||||||
Bank of America NA | 2,500,000 | 2,779,440 | ||||||
Berkshire Hathaway Finance Inc | 6,000,000 | 6,147,768 | ||||||
3.000% due 05/15/22 | 3,500,000 | 3,636,850 | ||||||
Boston Properties LP REIT | 5,000,000 | 5,278,490 | ||||||
BRE Properties Inc REIT | 2,750,000 | 2,741,920 | ||||||
Capital One Financial Corp | 5,000,000 | 5,129,790 | ||||||
Citigroup Inc | 2,250,000 | 2,475,758 | ||||||
5.875% due 01/30/42 | 1,000,000 | 1,210,880 | ||||||
DDR Corp REIT | 1,250,000 | 1,362,152 | ||||||
Dexus Diversified Trust REIT (Australia) | 500,000 | 525,413 | ||||||
Duke Realty LP REIT | 6,250,000 | 6,604,712 | ||||||
Ford Motor Credit Co LLC | 4,500,000 | 4,586,508 | ||||||
4.250% due 09/20/22 | 4,500,000 | 4,621,878 | ||||||
Host Hotels & Resorts LP REIT | 2,000,000 | 2,210,000 | ||||||
Hyundai Capital America | 6,000,000 | 6,009,342 | ||||||
JPMorgan Chase & Co | 4,000,000 | 4,065,216 | ||||||
Liberty Mutual Group Inc | 3,500,000 | 3,668,822 | ||||||
Morgan Stanley | 2,750,000 | 2,952,012 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-23 |
A-6
PACIFIC LIFE FUNDS
PL INCOME FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | Value | |||||||
Neuberger Berman Group LLC | $1,500,000 | $1,605,000 | ||||||
Raymond James Financial Inc | 1,000,000 | 1,103,978 | ||||||
The Goldman Sachs Group Inc | 1,750,000 | 2,019,939 | ||||||
UDR Inc REIT | 2,500,000 | 2,764,990 | ||||||
Vornado Realty LP REIT | 6,500,000 | 7,207,499 | ||||||
WEA Finance LLC | 4,000,000 | 3,985,872 | ||||||
Wells Operating Partnership II LP REIT | 750,000 | 787,684 | ||||||
|
| |||||||
94,962,475 | ||||||||
|
| |||||||
Health Care - 3.2% |
| |||||||
Amgen Inc | 3,000,000 | 3,102,066 | ||||||
Cardinal Health Inc | 3,000,000 | 3,056,694 | ||||||
Express Scripts Holding Co | 4,500,000 | 4,721,409 | ||||||
Fresenius Medical Care U.S. Finance II Inc | 2,000,000 | 2,135,000 | ||||||
HCA Inc | 2,000,000 | 2,177,500 | ||||||
Watson Pharmaceuticals Inc | 550,000 | 558,342 | ||||||
|
| |||||||
15,751,011 | ||||||||
|
| |||||||
Industrials - 7.8% |
| |||||||
Air Lease Corp | 850,000 | 854,250 | ||||||
5.625% due 04/01/17 ~ | 2,000,000 | 2,050,000 | ||||||
Avis Budget Car Rental LLC | 1,260,000 | 1,260,000 | ||||||
Burlington Northern Santa Fe LLC | 6,000,000 | 6,224,658 | ||||||
Continental Airlines Pass-Through Certificates ‘A’ 4.000% due 04/29/26 | 4,500,000 | 4,595,850 | ||||||
Continental Airlines Pass-Through Certificates ‘B’ 5.500% due 04/29/22 | 300,000 | 307,500 | ||||||
Delta Air Lines Pass-Through Trust ‘A’ | 6,000,000 | 6,270,000 | ||||||
International Lease Finance Corp | 2,500,000 | 2,631,500 | ||||||
7.125% due 09/01/18 ~ | 1,000,000 | 1,170,000 | ||||||
Owens Corning | 1,500,000 | 1,686,235 | ||||||
The ADT Corp | 5,000,000 | 5,153,215 | ||||||
U.S. Airways Pass-Through Trust ‘A’ | 2,000,000 | 2,115,000 | ||||||
UR Merger Sub Corp | 4,000,000 | 4,235,000 | ||||||
|
| |||||||
38,553,208 | ||||||||
|
| |||||||
Materials - 7.6% |
| |||||||
ArcelorMittal (Luxembourg) | 3,500,000 | 3,454,094 | ||||||
Ardagh Packaging Finance PLC (Ireland) | 2,750,000 | 2,959,688 | ||||||
FMG Resources August 2006 Property Ltd (Australia) | 3,500,000 | 3,500,000 | ||||||
International Paper Co | 4,000,000 | 4,551,648 |
Principal | Value | |||||||
Louisiana-Pacific Corp | $1,050,000 | $1,174,687 | ||||||
LyondellBasell Industries NV (Netherlands) | 2,500,000 | 2,668,750 | ||||||
Packaging Corp of America | 5,450,000 | 5,637,878 | ||||||
Rock-Tenn Co | 5,500,000 | 5,622,534 | ||||||
Sealed Air Corp | 1,000,000 | 1,125,000 | ||||||
Tronox Finance LLC | 1,000,000 | 1,013,750 | ||||||
Vale Overseas Ltd (Cayman) | 1,250,000 | 1,320,501 | ||||||
Vale SA (Brazil) | 2,000,000 | 2,047,010 | ||||||
Xstrata Finance Canada Ltd (Canada) | 2,500,000 | 2,683,988 | ||||||
|
| |||||||
37,759,528 | ||||||||
|
| |||||||
Telecommunication Services - 2.1% |
| |||||||
AT&T Inc | 6,000,000 | 6,187,458 | ||||||
British Telecommunications PLC (United Kingdom) | 4,000,000 | 4,115,412 | ||||||
|
| |||||||
10,302,870 | ||||||||
|
| |||||||
Utilities - 2.9% |
| |||||||
CMS Energy Corp | 2,000,000 | 2,213,388 | ||||||
Duke Energy Corp | 6,000,000 | 6,026,040 | ||||||
Florida Gas Transmission Co LLC | 4,000,000 | 4,177,008 | ||||||
NRG Energy Inc | 2,000,000 | 2,047,500 | ||||||
|
| |||||||
14,463,936 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes | 359,783,150 | |||||||
|
| |||||||
SENIOR LOAN NOTES - 19.1% | ||||||||
Consumer Discretionary - 4.3% |
| |||||||
Acosta Inc Term D | 250,000 | 251,720 | ||||||
5.750% due 03/02/18 § | 1,496,250 | 1,506,544 | ||||||
Allison Transmission Inc Term B-3 | 997,500 | 1,002,176 | ||||||
AOT Bedding Term B | 1,000,000 | 997,411 | ||||||
Burger King Corp Tranche B | 886,302 | 888,823 | ||||||
Capital Automotive LP Tranche B | 2,809,507 | 2,830,579 | ||||||
ClubCorp Club Operations Inc Term B | 1,486,762 | 1,499,771 | ||||||
FoxCo Acquisition Sub LLC (Initial) | 750,000 | 757,500 | ||||||
Lord & Taylor Holdings LLC | 2,158,231 | 2,177,115 | ||||||
MGM Resorts International Class C (Extended) 5.000% due 02/23/15 § | 2,000,000 | 2,020,892 | ||||||
NPC International Inc | 1,492,500 | 1,511,156 | ||||||
Seven Seas Cruise S DE RL Term B | 2,000,000 | 2,017,500 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-23 |
A-7
PACIFIC LIFE FUNDS
PL INCOME FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | Value | |||||||
The Goodyear Tire & Rubber Co (2nd Lien) | $2,000,000 | $2,020,834 | ||||||
Wendy’s International Inc | ||||||||
4.750% due 05/15/19 § | 2,000,000 | 2,020,312 | ||||||
|
| |||||||
21,502,333 | ||||||||
|
| |||||||
Consumer Staples - 3.1% |
| |||||||
BJ’s Wholesale Club Inc | 2,000,000 | 2,014,750 | ||||||
Del Monte Foods Co | 3,131,034 | 3,132,340 | ||||||
Pinnacle Foods Finance LLC Tranche E | 2,985,000 | 2,994,949 | ||||||
Revlon Consumer Products Corp Term B | 2,982,399 | 2,999,641 | ||||||
Sprouts Farmers Markets Holdings LLC | 1,979,918 | 1,982,393 | ||||||
(Term 1 Loan) 6.000% due 04/18/18 § | 997,500 | 1,004,981 | ||||||
SUPERVALU Inc | 997,500 | 1,005,059 | ||||||
|
| |||||||
15,134,113 | ||||||||
|
| |||||||
Energy - 0.8% |
| |||||||
EP Energy LLC Tranche B-1 | 2,500,000 | 2,526,563 | ||||||
Samson Investment Co Term B | ||||||||
due 09/18/19 µ | 1,000,000 | 1,007,708 | ||||||
(Initial 2nd Lien) | ||||||||
6.000% due 09/25/18 § | 500,000 | 503,854 | ||||||
|
| |||||||
4,038,125 | ||||||||
|
| |||||||
Financials - 1.3% |
| |||||||
CNO Financial Group Inc Term B | 1,000,000 | 1,004,790 | ||||||
First Data Corp | 2,500,000 | 2,460,418 | ||||||
Nuveen Investments Inc | 500,000 | 502,000 | ||||||
(Initial) | 1,000,000 | 1,000,313 | ||||||
(Extended 1st Lien) | 1,500,000 | 1,499,688 | ||||||
|
| |||||||
6,467,209 | ||||||||
|
| |||||||
Health Care - 3.4% |
| |||||||
Bausch & Lomb Inc (Parent) | 2,992,500 | 3,029,158 | ||||||
Capsugel Holdings US Inc (Initial) | 3,824,884 | 3,850,384 | ||||||
Davita Inc Term B-2 | 3,000,000 | 3,011,250 | ||||||
Hologic Inc Tranche B | 2,500,000 | 2,532,500 | ||||||
Par Pharmaceutical Term B | 2,000,000 | 1,998,750 | ||||||
Pharmaceutical Product Development Inc Term B 6.250% due 11/23/18 § | 1,488,750 | 1,504,258 | ||||||
Valeant Pharmaceuticals International Inc Term B | 750,000 | 752,063 | ||||||
|
| |||||||
16,678,363 | ||||||||
|
|
Principal | Value | |||||||
Industrials - 2.3% |
| |||||||
AlixPartners LLP (Initial 1st Lien Term B-2) | $1,995,000 | $2,026,587 | ||||||
CSC Holdings LLC (Incremental B-2) | 5,169,312 | 5,178,286 | ||||||
Flying Fortress Inc | 2,000,000 | 2,027,500 | ||||||
Rexnord LLC Term B | 1,985,000 | 1,996,787 | ||||||
|
| |||||||
11,229,160 | ||||||||
|
| |||||||
Materials - 0.3% |
| |||||||
Univar Inc | 1,500,000 | 1,485,150 | ||||||
|
| |||||||
Telecommunication Services - 3.6% |
| |||||||
Intelstat Jackson Holdings SA Tranche B | 2,983,662 | 2,998,396 | ||||||
Level 3 Financing Inc | 1,500,000 | 1,500,000 | ||||||
Tranche B | 2,500,000 | 2,514,063 | ||||||
Tranche B-3 | 1,500,000 | 1,509,845 | ||||||
Telesat Canada Term B | 1,995,000 | 2,002,481 | ||||||
WaveDivision Holdings LLC Term B | 2,750,000 | 2,774,063 | ||||||
Windstream Corp Tranche B-3 | 4,488,750 | 4,514,897 | ||||||
|
| |||||||
17,813,745 | ||||||||
|
| |||||||
Total Senior Loan Notes | 94,348,198 | |||||||
|
| |||||||
U.S. TREASURY OBLIGATIONS - 3.7% | ||||||||
U.S. Treasury Bonds - 1.4% | ||||||||
3.000% due 05/15/42 | 3,250,000 | 3,375,431 | ||||||
3.750% due 08/15/41 | 3,000,000 | 3,592,032 | ||||||
|
| |||||||
6,967,463 | ||||||||
|
| |||||||
U.S. Treasury Notes - 2.3% | ||||||||
0.375% due 04/15/15 | 3,000,000 | 3,007,032 | ||||||
1.250% due 04/30/19 | 4,000,000 | 4,077,812 | ||||||
1.750% due 05/31/16 | 2,250,000 | 2,359,688 | ||||||
1.750% due 05/15/22 | 2,000,000 | 2,029,220 | ||||||
|
| |||||||
11,473,752 | ||||||||
|
| |||||||
Total U.S. Treasury Obligations | 18,441,215 | |||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-23 |
A-8
PACIFIC LIFE FUNDS
PL INCOME FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Shares | Value | |||||||
SHORT-TERM INVESTMENT - 9.3% | ||||||||
Money Market Fund - 9.3% | ||||||||
BlackRock Liquidity Funds Treasury | 46,075,348 | $46,075,348 | ||||||
|
| |||||||
Total Short-Term Investment | 46,075,348 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 104.8% | 518,647,911 | |||||||
OTHER ASSETS & LIABILITIES, NET - (4.8%) | (23,773,469 | ) | ||||||
|
| |||||||
NET ASSETS - 100.0% | $494,874,442 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Corporate Bonds & Notes | 72.7% | |||
Senior Loan Notes | 19.1% | |||
Short-Term Investment | 9.3% | |||
U.S. Treasury Obligations | 3.7% | |||
|
| |||
104.8% | ||||
Other Assets & Liabilities, Net | (4.8% | ) | ||
|
| |||
100.0% | ||||
|
|
(b) | As of September 30, 2012, the fund’s Standard & Poor’s quality ratings as a percentage of total fixed income investments were are follows: |
AA / U.S. Government & Agency Issues | 6.0% | |||
A | 13.5% | |||
BBB | 47.5% | |||
BB | 18.2% | |||
B | 11.9% | |||
Not Rated | 2.9% | |||
|
| |||
100.0% | ||||
|
|
(c) | As of September 30, 2012, 1.2% 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 investments as categorized under the three-tier hierarchy of inputs used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Corporate Bonds & Notes | $359,783,150 | $— | $357,668,150 | $2,115,000 | |||||||||||||
Senior Loan Notes | 94,348,198 | — | 94,348,198 | — | ||||||||||||||
U.S. Treasury Obligations | 18,441,215 | — | 18,441,215 | — | ||||||||||||||
Short-Term Investment | 46,075,348 | 46,075,348 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $518,647,911 | $46,075,348 | $470,457,563 | $2,115,000 | ||||||||||||||
|
|
|
|
|
|
|
|
The following is a reconciliation of investments for significant unobservable inputs (Level 3) used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) for the six-month period ended September 30, 2012:
Corporate Bonds & Notes | ||||
Value, Beginning of Period | $525,000 | |||
Purchases | 2,065,000 | |||
Sales | (531,978 | ) | ||
Accrued Discounts (Premiums) | (579 | ) | ||
Net Realized Gains | 31,978 | |||
Change in Net Unrealized Appreciation | 25,579 | |||
Transfers In | — | |||
Transfers Out | — | |||
|
| |||
Value, End of Period | $2,115,000 | |||
|
| |||
Change in Net Unrealized Appreciation on Level 3 Investments Held at the End of Period, if Applicable | $50,579 | |||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-23 |
A-9
PACIFIC LIFE FUNDS
PL STRATEGIC INCOME FUND
Schedule of Investments
September 30, 2012 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS - 0.2% |
| |||||||
Consumer Discretionary - 0.1% |
| |||||||
MGM Resorts International * | 1,900 | $20,425 | ||||||
|
| |||||||
Industrials - 0.1% | ||||||||
Kansas City Southern | 400 | 30,312 | ||||||
|
| |||||||
Total Common Stocks | 50,737 | |||||||
|
| |||||||
EXCHANGE-TRADED FUND - 2.1% | ||||||||
PowerShares Senior Loan Portfolio | 21,341 | 532,458 | ||||||
|
| |||||||
Total Exchange-Traded Fund | 532,458 | |||||||
|
| |||||||
Principal | ||||||||
CORPORATE BONDS & NOTES - 88.0% | ||||||||
Consumer Discretionary - 12.2% | ||||||||
99 Cents Only Stores | $100,000 | 112,750 | ||||||
American Axle & Manufacturing Inc | 100,000 | 101,750 | ||||||
Beazer Homes USA Inc | 100,000 | 101,500 | ||||||
Boyd Gaming Corp | 100,000 | 102,500 | ||||||
Chrysler Group LLC | 100,000 | 107,000 | ||||||
CityCenter Holdings LLC | 100,000 | 107,250 | ||||||
DISH DBS Corp | 100,000 | 109,500 | ||||||
Great Canadian Gaming Corp (Canada) | CAD 50,000 | 52,703 | ||||||
Harrah’s Operating Co | $100,000 | 108,000 | ||||||
Hyatt Hotels Corp | 100,000 | 118,832 | ||||||
Jo-Ann Stores Inc | 150,000 | 153,750 | ||||||
Kia Motors Corp (South Korea) | 250,000 | 263,197 | ||||||
Limited Brands Inc | 100,000 | 108,250 | ||||||
MGM Resorts International | 100,000 | 100,250 | ||||||
7.625% due 01/15/17 | 100,000 | 106,500 | ||||||
NPC International Inc | 150,000 | 173,250 | ||||||
NVR Inc | 250,000 | 256,927 | ||||||
Scientific Games International Inc | 100,000 | 100,625 | ||||||
Sinclair Television Group Inc | 100,000 | 100,625 | ||||||
Sirius XM Radio Inc | 100,000 | 100,000 | ||||||
The Ryland Group Inc | 100,000 | 100,500 | ||||||
The ServiceMaster Co | 100,000 | 106,500 |
Principal | Value | |||||||
Toys R Us Inc | $50,000 | $51,375 | ||||||
Virgin Media Secured Finance PLC (United Kingdom) | 145,000 | 159,500 | ||||||
Wolverine World Wide Inc | 100,000 | 103,500 | ||||||
Wyndham Worldwide Corp | 100,000 | 112,750 | ||||||
|
| |||||||
3,119,284 | ||||||||
|
| |||||||
Consumer Staples - 4.1% | ||||||||
Agrokor DD (Croatia) | 100,000 | 100,000 | ||||||
Del Monte Corp | 200,000 | 206,750 | ||||||
Nufarm Australia Ltd (Australia) | 100,000 | 100,000 | ||||||
Pernod-Ricard SA (France) | 100,000 | 109,116 | ||||||
Pinnacle Foods Finance LLC | 100,000 | 108,875 | ||||||
Reynolds Group Issuer Inc | 250,000 | 255,000 | ||||||
9.875% due 08/15/19 | 50,000 | 53,437 | ||||||
Spectrum Brands Inc | 100,000 | 103,625 | ||||||
|
| |||||||
1,036,803 | ||||||||
|
| |||||||
Energy - 18.1% | ||||||||
Alpha Natural Resources Inc | 250,000 | 247,397 | ||||||
Arch Coal Inc | 100,000 | 84,000 | ||||||
Basic Energy Services Inc | 100,000 | 103,000 | ||||||
BreitBurn Energy Partners LP | 100,000 | 104,000 | ||||||
Bristow Group Inc | 100,000 | 102,750 | ||||||
Cimarex Energy Co | 100,000 | 106,000 | ||||||
Concho Resources Inc | 100,000 | 104,375 | ||||||
Crosstex Energy LP | 100,000 | 107,187 | ||||||
Drill Rigs Holdings Inc | 100,000 | 99,625 | ||||||
Ensco PLC (United Kingdom) | 100,000 | 113,171 | ||||||
EP Energy LLC | 100,000 | 107,125 | ||||||
7.750% due 09/01/22 ~ | 50,000 | 51,125 | ||||||
9.375% due 05/01/20 ~ | 100,000 | 109,125 | ||||||
EV Energy Partners LP | 150,000 | 156,375 | ||||||
Hilcorp Energy I LP | 100,000 | 110,500 | ||||||
Holly Energy Partners LP | 100,000 | 105,250 | ||||||
Key Energy Services Inc | 100,000 | 102,000 | ||||||
Kinder Morgan Energy Partners LP | 250,000 | 258,009 | ||||||
Korea National Oil Corp (South Korea) | 100,000 | 105,346 | ||||||
Linn Energy LLC | 100,000 | 99,625 | ||||||
Lukoil International Finance BV (Netherlands) | 100,000 | 114,492 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-23 |
A-10
PACIFIC LIFE FUNDS
PL STRATEGIC INCOME FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | Value | |||||||
MEG Energy Corp (Canada) | $100,000 | $106,875 | ||||||
Newfield Exploration Co | 100,000 | 111,125 | ||||||
OGX Austria GmbH (Austria) | 100,000 | 87,250 | ||||||
ONEOK Partners LP | 150,000 | 152,998 | ||||||
Petrobras International Finance Co (Cayman) | 200,000 | 226,400 | ||||||
Pioneer Natural Resources Co | 250,000 | 266,162 | ||||||
Plains Exploration & Production Co | 250,000 | 255,000 | ||||||
QEP Resources Inc | 100,000 | 102,500 | ||||||
Regency Energy Partners LP | 100,000 | 107,250 | ||||||
Sabine Pass LNG LP | 100,000 | 108,500 | ||||||
Samson Investment Co | 100,000 | 103,125 | ||||||
SandRidge Energy Inc | 100,000 | 103,500 | ||||||
SESI LLC | 100,000 | 107,500 | ||||||
Transocean Inc (Cayman) | 200,000 | 201,503 | ||||||
Weatherford International Ltd (Bermuda) | 100,000 | 104,805 | ||||||
|
| |||||||
4,634,970 | ||||||||
|
| |||||||
Financials - 13.3% | ||||||||
Ally Financial Inc | 250,000 | 256,538 | ||||||
Anglo American Capital PLC (United Kingdom) | 250,000 | 251,546 | ||||||
Boston Properties LP REIT | 250,000 | 263,925 | ||||||
BRE Properties Inc REIT | 250,000 | 249,266 | ||||||
DDR Corp REIT | 100,000 | 108,972 | ||||||
Duke Realty LP REIT | 100,000 | 105,675 | ||||||
First Data Corp | 100,000 | 99,875 | ||||||
7.375% due 06/15/19 ~ | 100,000 | 103,625 | ||||||
Ford Motor Credit Co LLC | 300,000 | 308,125 | ||||||
Host Hotels & Resorts LP REIT | 250,000 | 277,500 | ||||||
Hub International Ltd | 100,000 | 101,750 | ||||||
Hyundai Capital America | 250,000 | 250,389 | ||||||
Liberty Mutual Group Inc | 200,000 | 209,647 | ||||||
Neuberger Berman Group LLC | 100,000 | 107,500 | ||||||
Nuveen Investments Inc | 100,000 | 99,750 | ||||||
Raymond James Financial Inc | 100,000 | 110,398 | ||||||
Realogy Corp | 100,000 | 110,750 |
Principal | Value | |||||||
UDR Inc REIT | $250,000 | $276,499 | ||||||
Vornado Realty LP REIT | 100,000 | 110,885 | ||||||
|
| |||||||
3,402,615 | ||||||||
|
| |||||||
Health Care - 6.3% | ||||||||
Biomet Inc | 100,000 | 103,875 | ||||||
CDRT Holding Corp | 100,000 | 97,000 | ||||||
CHS/Community Health Systems Inc | 100,000 | 104,000 | ||||||
7.125% due 07/15/20 | 100,000 | 106,812 | ||||||
DaVita Inc | 150,000 | 156,750 | ||||||
DJO Finance LLC | 100,000 | 91,750 | ||||||
HCA Inc | 200,000 | 217,750 | ||||||
HealthSouth Corp | 100,000 | 102,125 | ||||||
Mylan Inc | 100,000 | 106,500 | ||||||
Tenet Healthcare Corp | 100,000 | 107,875 | ||||||
Valeant Pharmaceuticals International | 100,000 | 107,000 | ||||||
Vanguard Health Holding Co II LLC | 100,000 | 107,250 | ||||||
Watson Pharmaceuticals Inc | 100,000 | 101,517 | ||||||
WellPoint Inc | 100,000 | 101,389 | ||||||
|
| |||||||
1,611,593 | ||||||||
|
| |||||||
Industrials - 10.6% | ||||||||
ADS Waste Holdings Inc | 100,000 | 102,250 | ||||||
Air Lease Corp | 200,000 | 205,000 | ||||||
Ashtead Capital Inc | 100,000 | 105,375 | ||||||
Avis Budget Car Rental LLC | 100,000 | 109,375 | ||||||
BE Aerospace Inc | 100,000 | 104,250 | ||||||
6.875% due 10/01/20 | 100,000 | 111,500 | ||||||
Bombardier Inc (Canada) | 100,000 | 103,000 | ||||||
Burlington Northern Santa Fe LLC | 250,000 | 265,979 | ||||||
Continental Airlines Pass-Through Certificates ‘B’ | 100,000 | 102,500 | ||||||
Delta Air Lines Pass-Through Trust ‘A’ | 150,000 | 156,750 | ||||||
HD Supply Inc | 100,000 | 108,750 | ||||||
International Lease Finance Corp | 100,000 | 106,546 | ||||||
6.750% due 09/01/16 ~ | 200,000 | 225,750 | ||||||
Nielsen Finance LLC | 150,000 | 149,812 | ||||||
Owens Corning | 150,000 | 168,623 | ||||||
The Manitowoc Co Inc | 100,000 | 112,500 | ||||||
Tomkins LLC | 35,000 | 39,200 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-23 |
A-11
PACIFIC LIFE FUNDS
PL STRATEGIC INCOME FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | Value | |||||||
U.S. Airways Pass-Through Trust ‘A’ | $100,000 | $105,750 | ||||||
7.125% due 04/01/26 | 98,394 | 107,249 | ||||||
UR Merger Sub Corp | 100,000 | 109,750 | ||||||
8.250% due 02/01/21 | 100,000 | 110,250 | ||||||
|
| |||||||
2,710,159 | ||||||||
|
| |||||||
Information Technology - 0.4% | ||||||||
Advanced Micro Devices Inc | 100,000 | 97,000 | ||||||
|
| |||||||
Materials - 16.3% | ||||||||
AK Steel Corp | 150,000 | 129,000 | ||||||
ArcelorMittal (Luxembourg) | 250,000 | 246,721 | ||||||
Ardagh Packaging Finance PLC (Ireland) | 150,000 | 159,125 | ||||||
Berry Plastics Corp | 100,000 | 110,250 | ||||||
Building Materials Corp of America | 100,000 | 107,750 | ||||||
7.000% due 02/15/20 ~ | 50,000 | 54,500 | ||||||
Celulosa Arauco y Constitucion SA (Chile) | 250,000 | 262,362 | ||||||
Consolidated Container Co LLC | 100,000 | 107,000 | ||||||
Domtar Corp | 100,000 | 102,610 | ||||||
FMG Resources August 2006 Property Ltd (Australia) | 250,000 | 233,438 | ||||||
6.875% due 04/01/22 ~ | 100,000 | 91,875 | ||||||
Graphic Packaging International Inc | 100,000 | 111,250 | ||||||
Hexion U.S. Finance Corp | 150,000 | 153,375 | ||||||
Ineos Finance PLC (United Kingdom) | 100,000 | 102,000 | ||||||
Longview Fibre Paper & Packaging Inc | 100,000 | 104,750 | ||||||
Louisiana-Pacific Corp | 100,000 | 111,875 | ||||||
LyondellBasell Industries (Netherlands) | 200,000 | 213,500 | ||||||
Packaging Corp of America | 150,000 | 155,171 | ||||||
PH Glatfelter Co | 100,000 | 101,500 | ||||||
Rock-Tenn Co | 100,000 | 101,891 | ||||||
4.900% due 03/01/22 ~ | 100,000 | 108,558 | ||||||
Rockwood Specialties Group Inc | 100,000 | 101,875 | ||||||
Sappi Papier Holding GmbH (Austria) | 100,000 | 107,375 | ||||||
Sealed Air Corp | 100,000 | 112,500 | ||||||
Tronox Finance LLC | 100,000 | 101,375 | ||||||
Vale Overseas Ltd (Cayman) | 250,000 | 264,100 | ||||||
Vale SA (Brazil) | 500,000 | 511,753 | ||||||
Xstrata Finance Canada Ltd (Canada) | 100,000 | 107,360 | ||||||
|
| |||||||
4,174,839 | ||||||||
|
|
Principal | Value | |||||||
Telecommunication Services - 4.8% | ||||||||
America Movil SAV de CV (Mexico) | $100,000 | $103,324 | ||||||
CenturyLink Inc | 200,000 | 224,319 | ||||||
Cricket Communications Inc | 100,000 | 98,000 | ||||||
Frontier Communications Corp | 100,000 | 104,375 | ||||||
Intelsat Luxembourg SA (Luxembourg) | 250,000 | 265,313 | ||||||
MetroPCS Wireless Inc | 100,000 | 108,500 | ||||||
SBA Telecommunications Inc | 100,000 | 105,375 | ||||||
Sprint Nextel Corp | 100,000 | 112,250 | ||||||
Telesat LLC (Canada) | 100,000 | 104,500 | ||||||
|
| |||||||
1,225,956 | ||||||||
|
| |||||||
Utilities - 1.9% | ||||||||
CMS Energy Corp | 100,000 | 110,669 | ||||||
NRG Energy Inc | 250,000 | 271,875 | ||||||
Puget Energy Inc | 100,000 | 106,500 | ||||||
|
| |||||||
489,044 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes | 22,502,263 | |||||||
|
| |||||||
U.S. TREASURY OBLIGATIONS - 3.6% | ||||||||
U.S. Treasury Bonds - 3.6% | ||||||||
2.750% due 08/15/42 | 250,000 | 246,250 | ||||||
3.000% due 05/15/42 | 250,000 | 259,649 | ||||||
3.125% due 11/15/41 | 400,000 | 426,750 | ||||||
|
| |||||||
932,649 | ||||||||
|
| |||||||
Total U.S. Treasury Obligations | 932,649 | |||||||
|
| |||||||
Shares | ||||||||
SHORT-TERM INVESTMENT - 5.4% | ||||||||
Money Market Fund - 5.4% | ||||||||
BlackRock Liquidity Funds Treasury | 1,376,865 | 1,376,865 | ||||||
|
| |||||||
Total Short-Term Investment | 1,376,865 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 99.3% | 25,394,972 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.7% |
| 186,209 | ||||||
|
| |||||||
NET ASSETS - 100.0% | $25,581,181 | |||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-23 |
A-12
PACIFIC LIFE FUNDS
PL STRATEGIC INCOME FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Energy | 18.1% | |||
Materials | 16.3% | |||
Financials | 13.3% | |||
Consumer Discretionary | 12.3% | |||
Industrials | 10.7% | |||
Health Care | 6.3% | |||
Short -Term Investment | 5.4% | |||
Telecommunication Services | 4.8% | |||
Consumer Staples | 4.1% | |||
U.S. Treasury Obligations | 3.6% | |||
Exchange-Traded Funds | 2.1% | |||
Utilities | 1.9% | |||
Information Technology | 0.4% | |||
|
| |||
99.3% | ||||
Other Assets & Liabilities, Net | 0.7% | |||
|
| |||
100.0% | ||||
|
|
(b) | As of September 30, 2012, the fund’s Standard & Poor’s quality ratings as a percentage of total fixed income investments were as follows: |
AA / U.S. Government & Agency Issues | 4.0% | |||
A | 6.4% | |||
BBB | 26.1% | |||
BB | 25.7% | |||
B | 24.5% | |||
CCC | 8.4% | |||
Not Rated | 4.9% | |||
|
| |||
100.0% | ||||
|
|
(c) | Fair Value Measurements |
The following is a summary of the fund’s investments as categorized under the three-tier hierarchy of inputs used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Common Stocks (1) | $50,737 | $50,737 | $— | $— | |||||||||||||
Exchange-Traded Fund | 532,458 | 532,458 | — | — | ||||||||||||||
Corporate Bonds & Notes | 22,502,263 | — | 22,289,264 | 212,999 | ||||||||||||||
U.S. Treasury Obligations | 932,649 | — | 932,649 | — | ||||||||||||||
Short-Term Investment | 1,376,865 | 1,376,865 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $25,394,972 | $1,960,060 | $23,221,913 | $212,999 | ||||||||||||||
|
|
|
|
|
|
|
|
During the six-month period ended September 30, 2012, an investment with a value of $107,249 was transferred from level 2 to level 3 due to valuation being updated from an evaluated vendor price to a single broker quoted vendor price.
The following is a reconciliation of investments for significant unobservable inputs (Level 3) used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) for the six-month period ended September 30, 2012:
Corporate Bonds & Notes | ||||
Value, Beginning of Period | $— | |||
Purchases | 100,000 | |||
Sales | — | |||
Accrued Discounts (Premiums) | — | |||
Net Realized Gains (Losses) | — | |||
Change in Net Unrealized Appreciation | 5,750 | |||
Transfers In | 107,249 | |||
Transfers Out | — | |||
|
| |||
Value, End of Period | $212,999 | |||
|
| |||
Change in Net Unrealized Appreciation on Level 3 | $5,750 | |||
|
|
(1) | For equity investments categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-23 |
A-13
PACIFIC LIFE FUNDS
PL FLOATING RATE INCOME FUND
Schedule of Investments
September 30, 2012 (Unaudited)
Principal | Value | |||||||
CORPORATE BONDS & NOTES - 6.7% | ||||||||
Consumer Discretionary - 0.2% | ||||||||
NPC International Inc | $150,000 | $173,250 | ||||||
|
| |||||||
Consumer Staples - 0.8% | ||||||||
Reynolds Group Issuer Inc | 250,000 | 250,313 | ||||||
9.875% due 08/15/19 | 500,000 | 534,375 | ||||||
|
| |||||||
784,688 | ||||||||
|
| |||||||
Financials - 0.5% | ||||||||
First Data Corp | 500,000 | 499,375 | ||||||
|
| |||||||
Health Care - 0.6% | ||||||||
CHS/Community Health Systems Inc | 500,000 | 534,063 | ||||||
|
| |||||||
Industrials - 0.8% | ||||||||
Ceridian Corp | 500,000 | 542,500 | ||||||
U.S. Airways 2011-1 Pass-Through Trust ‘A’ | 245,984 | 268,122 | ||||||
|
| |||||||
810,622 | ||||||||
|
| |||||||
Information Technology - 0.8% | ||||||||
Advanced Micro Devices Inc | 750,000 | 727,500 | ||||||
|
| |||||||
Materials - 1.0% | ||||||||
FMG Resources August 2006 Property Ltd (Australia) 7.000% due 11/01/15 ~ | 1,000,000 | 1,000,000 | ||||||
|
| |||||||
Telecommunication Services - 2.0% | ||||||||
Hughes Satellite Systems Corp | 250,000 | 278,125 | ||||||
Intelsat Jackson Holdings SA (Luxembourg) | 1,000,000 | 1,080,000 | ||||||
Intelsat Luxembourg SA (Luxembourg) | 500,000 | 531,875 | ||||||
|
| |||||||
1,890,000 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes | 6,419,498 | |||||||
|
| |||||||
SENIOR LOAN NOTES - 87.2% | ||||||||
Consumer Discretionary - 25.4% | ||||||||
99 Cents Only Stores Tranche B-1 | 496,256 | 502,459 | ||||||
Acosta Inc Term D | 997,500 | 1,004,363 | ||||||
Allison Transmission Inc Term B-3 | 997,500 | 1,002,176 | ||||||
AOT Bedding Term B | 1,000,000 | 997,411 | ||||||
Ascena Retail Group Inc Tranche B | 997,500 | 1,006,644 | ||||||
Bass Pro Group LLC | 995,000 | 1,008,526 |
Principal | Value | |||||||
Burger King Corp Tranche B | $686,531 | $688,483 | ||||||
Caesars Entertainment Operating Co Inc Term B-6 | 446,625 | 407,067 | ||||||
Cannery Casino Resorts LLC Term B | 1,000,000 | 1,001,250 | ||||||
Capital Automotive LP Tranche B | 954,493 | 961,651 | ||||||
Clear Channel Communications Inc | 500,000 | 471,875 | ||||||
Tranche B | 984,266 | 807,098 | ||||||
ClubCorp Club Operations Inc Term B | 742,443 | 748,940 | ||||||
Cogeco Cable Term B | 500,000 | 505,000 | ||||||
Focus Brands Inc (1st Lien) | 459,139 | 465,452 | ||||||
FoxCo Acquisition Sub LLC (Initial) | 750,000 | 757,500 | ||||||
Interactive Data Corp Term B | 495,000 | 498,401 | ||||||
Jo-Ann Stores Inc | 483,451 | 485,415 | ||||||
Live Nation Entertainment Inc Term B | 498,750 | 500,824 | ||||||
Lord & Taylor Holdings LLC | 719,410 | 725,705 | ||||||
MGM Resorts International Term C | 1,000,000 | 1,010,446 | ||||||
NPC International Inc | 497,500 | 503,719 | ||||||
Party City Holdings Inc | 750,000 | 760,430 | ||||||
Peninsula Gaming LLC Term B | 1,000,000 | 1,015,625 | ||||||
Petco Animal Supplies Inc | 994,950 | 1,001,271 | ||||||
Savers Inc Term B | 997,500 | 1,011,216 | ||||||
Seven Seas Cruise S DE RL Term B | 1,000,000 | 1,008,750 | ||||||
The Goodyear Tire & Rubber Co (2nd Lien) | 1,000,000 | 1,010,417 | ||||||
The Neiman Marcus Group Inc | 1,000,000 | 1,007,216 | ||||||
Wendy’s International Inc | 1,000,000 | 1,010,156 | ||||||
WideOpenWest Finance LLC | 498,750 | 504,049 | ||||||
|
| |||||||
24,389,535 | ||||||||
|
| |||||||
Consumer Staples - 9.2% | ||||||||
BJ’s Wholesale Club LLC | ||||||||
Term B (1st Lien) | 500,000 | 503,688 | ||||||
(2nd Lien) | 500,000 | 508,750 | ||||||
Del Monte Foods Co (Initial) | 719,069 | 719,369 | ||||||
Pinnacle Foods Finance LLC Tranche E | 995,000 | 998,316 | ||||||
Prestige Brands International Inc Term B | 428,030 | 432,998 | ||||||
Revlon Consumer Products Corp Term B | 992,462 | 998,200 | ||||||
Reynolds Group Holdings Inc Term B | 750,000 | 753,982 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-23 |
A-14
PACIFIC LIFE FUNDS
PL FLOATING RATE INCOME FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | Value | |||||||
Sprouts Farmers Markets Holdings LLC | $494,975 | $495,594 | ||||||
Term-1 | 498,750 | 502,491 | ||||||
SUPERVALU Inc | 1,496,250 | 1,507,589 | ||||||
U.S. Foods Inc | 1,483,734 | 1,465,187 | ||||||
|
| |||||||
8,886,164 | ||||||||
|
| |||||||
Energy - 3.9% | ||||||||
Arch Coal Inc | 997,500 | 1,006,848 | ||||||
EP Energy LLC Tranche B-1 | 1,250,000 | 1,263,281 | ||||||
Samson Investment Company Term B | 500,000 | 503,854 | ||||||
(Initial 2nd Lien) | 500,000 | 503,854 | ||||||
Tervita Corp Term A | 496,250 | 497,904 | ||||||
|
| |||||||
3,775,741 | ||||||||
|
| |||||||
Financials - 5.9% | ||||||||
Amwins Group LLC (1st Lien) | 997,500 | 1,001,241 | ||||||
CNO Financial Term B | 1,000,000 | 1,004,790 | ||||||
First Data Corp | 1,000,000 | 957,670 | ||||||
Nuveen Investments Inc | ||||||||
(Extended 1st Lien) | 500,000 | 499,896 | ||||||
(2nd Lien) | 1,000,000 | 1,009,167 | ||||||
Realogy Corp | 69,826 | 67,207 | ||||||
(Extended Synthetic Commitment) | 54,270 | 53,705 | ||||||
(Extended) | 695,319 | 688,075 | ||||||
ROC Finance LLC Term B | 366,667 | 376,750 | ||||||
|
| |||||||
5,658,501 | ||||||||
|
| |||||||
Health Care - 13.5% | ||||||||
Bausch & Lomb Inc (Parent) | 1,496,250 | 1,514,579 | ||||||
Capsugel Holdings US Inc (Initial) | 1,412,589 | 1,422,007 | ||||||
Catalent Pharma Solutions Inc Term-2 | 496,256 | 501,219 | ||||||
ConvaTec Inc Term B | 500,000 | 502,500 | ||||||
DaVita Inc Term B | 1,250,000 | 1,254,688 | ||||||
DJO Finance LLC Tranche B-3 | 1,245,620 | 1,251,848 | ||||||
Hologic Inc Tranche B | 1,000,000 | 1,013,000 | ||||||
Iasis Healthcare LLC Term B | 992,468 | 996,811 | ||||||
Ikaria Acquisition Inc Term B | 500,000 | 501,250 | ||||||
Kindred Healthcare Inc Term B (Incremental) | 1,000,000 | 987,800 | ||||||
Par Pharmaceutical Term B | 1,000,000 | 999,375 |
Principal | Value | |||||||
Pharmaceutical Product Development Inc | $496,250 | $501,419 | ||||||
U.S. Renal Care Inc | 997,500 | 1,012,463 | ||||||
Valeant Pharmaceuticals International Inc Term B | 500,000 | 501,375 | ||||||
|
| |||||||
12,960,334 | ||||||||
|
| |||||||
Industrials - 13.6% | ||||||||
ADS Waste Holdings Inc Term B | 1,000,000 | 1,008,333 | ||||||
AlixPartners LLP Term B-2 (Initial 1st Lien) | 997,500 | 1,013,293 | ||||||
AWAS Finance Luxembourg SARL | 893,617 | 896,968 | ||||||
CAMP Systems (Initial 1st Lien) | 1,000,000 | 1,011,563 | ||||||
Ceridian Corp (Extended) | 500,000 | 503,750 | ||||||
CPG International I Inc | 750,000 | 752,813 | ||||||
Delos Aircraft Inc | 1,000,000 | 1,011,250 | ||||||
Delta Air Lines Inc | 493,750 | 498,996 | ||||||
Generac Power Systems Inc | 750,000 | 765,938 | ||||||
HD Supply Inc Term B | 750,000 | 775,468 | ||||||
Hupah Finance Inc (Initial) | 497,500 | 503,408 | ||||||
John Maneely Co | 496,227 | 499,639 | ||||||
Navistar Inc Tranche B | 1,000,000 | 1,016,250 | ||||||
Protection One Alarm Monitoring Inc | 891,440 | 897,011 | ||||||
Rexnord LLC Term B | 993,744 | 999,644 | ||||||
Terex Corp | 495,000 | 497,475 | ||||||
WCA Waste Corp | 497,500 | 500,609 | ||||||
|
| |||||||
13,152,408 | ||||||||
|
| |||||||
Information Technology - 1.8% | ||||||||
Infor Inc Term B-2 | 1,000,000 | 1,005,260 | ||||||
SSI Investments II Ltd | 250,000 | 248,750 | ||||||
8.250% due 08/24/19 § | 495,000 | 498,016 | ||||||
|
| |||||||
1,752,026 | ||||||||
|
| |||||||
Materials - 6.3% | ||||||||
Essar Steel Algoma Inc Term B | 1,000,000 | 1,010,000 | ||||||
Polyone Corp | 496,250 | 500,747 | ||||||
Sealed Air Corp Term B (Advance) | 1,478,728 | 1,490,478 | ||||||
Taminco Global Chemical Corp Tranche B-1 | 995,000 | 1,007,438 | ||||||
UCI International Inc | 994,937 | 1,007,373 | ||||||
Univar Inc | 1,000,000 | 990,100 | ||||||
|
| |||||||
6,006,136 | ||||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-23 |
A-15
PACIFIC LIFE FUNDS
PL FLOATING RATE INCOME FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | Value | |||||||
Telecommunication Services - 5.8% | ||||||||
Atlantic Broadband Finance LLC (2nd Lien) | $1,000,000 | $1,048,750 | ||||||
Level 3 Financing Inc | 1,000,000 | 1,000,000 | ||||||
Tranche B | 500,000 | 502,813 | ||||||
Tranche B-2 | 500,000 | 503,281 | ||||||
Tranche B-3 | 500,000 | 503,282 | ||||||
WaveDivision Holdings LLC | 750,000 | 756,563 | ||||||
(Initial) | 750,000 | 756,563 | ||||||
West Corp Term B-6 | 498,750 | 504,049 | ||||||
|
| |||||||
5,575,301 | ||||||||
|
| |||||||
Utilities - 1.8% | ||||||||
Calpine Corp | 1,000,000 | 995,000 | ||||||
Texas Competitive Electric Holdings Co LLC | 1,000,000 | 747,375 | ||||||
|
| |||||||
1,742,375 | ||||||||
|
| |||||||
Total Senior Loan Notes | 83,898,521 | |||||||
|
| |||||||
Shares | ||||||||
SHORT-TERM INVESTMENT - 16.3% | ||||||||
Money Market Fund - 16.3% | ||||||||
BlackRock Liquidity Funds Treasury | 15,712,999 | 15,712,999 | ||||||
|
| |||||||
Total Short-Term Investment |
| 15,712,999 | ||||||
|
| |||||||
TOTAL INVESTMENTS - 110.2% | 106,031,018 | |||||||
OTHER ASSETS & LIABILITIES, NET - (10.2%) |
| (9,815,286 | ) | |||||
|
| |||||||
NET ASSETS - 100.0% | $96,215,732 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Consumer Discretionary | 25.6% | |||
Short-Term Investment | 16.3% | |||
Industrials | 14.4% | |||
Health Care | 14.1% | |||
Consumer Staples | 10.0% | |||
Telecommunication Services | 7.8% | |||
Materials | 7.3% | |||
Financials | 6.4% | |||
Energy | 3.9% | |||
Information Technology | 2.6% | |||
Utilities | 1.8% | |||
|
| |||
110.2% | ||||
Other Assets & Liabilities, Net | (10.2% | ) | ||
|
| |||
100.0% | ||||
|
|
(b) | As of September 30, 2012, the fund’s Standard & Poor’s quality ratings as a percentage of total fixed income investments were as follows: |
BBB | 4.9% | |||
BB | 30.2% | |||
B | 52.9% | |||
CCC | 4.5% | |||
Not Rated | 7.5% | |||
|
| |||
100.0% | ||||
|
|
(c) | Pursuant to the terms of the following senior loan agreement, the fund had an unfunded loan commitment of $134,000 or 0.1% of the net assets as of September 30, 2012, which could be extended at the option of the borrower: |
Borrower | Unfunded Commitment | Market Value | Unrealized Appreciation | |||||||||
ROC Finance LLC r | $134,000 | $137,000 | $3,000 | |||||||||
|
|
|
|
|
|
(d) | As of September 30, 2012, 5.0% of the fund’s net assets were reported illiquid by the portfolio manager under the Trust’s policy. |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-23 |
A-16
PACIFIC LIFE FUNDS
PL FLOATING RATE INCOME FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
(e) | Fair Value Measurements |
The following is a summary of the fund’s investments as categorized under the three-tier hierarchy of inputs used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant | Level 3 Significant | |||||||||||||||
Assets | Corporate Bonds & Notes | $6,419,498 | $— | $6,151,376 | $268,122 | |||||||||||||
Senior Loan Notes | 83,898,521 | — | 83,898,521 | — | ||||||||||||||
Short-Term Investment | 15,712,999 | 15,712,999 | — | — | ||||||||||||||
Unfunded Loan Commitment | 137,000 | — | 137,000 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $106,168,018 | $15,712,999 | $90,186,897 | $268,122 | ||||||||||||||
|
|
|
|
|
|
|
|
During the six-month period ended September 30, 2012, an investment with a value of $268,122 was transferred from level 2 to level 3 due to valuation being updated from an evaluated vendor price to a single broker quoted vendor price.
The following is a reconciliation of investments for significant unobservable inputs (Level 3) used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) for the six-month period ended September 30, 2012:
Corporate Bonds & Notes | ||||
Value, Beginning of Period | $— | |||
Purchases | — | |||
Sales | — | |||
Accrued Discounts (Premiums) | — | |||
Net Realized Gains (Losses) | — | |||
Change in Net Unrealized Appreciation (Depreciation) | — | |||
Transfers In | 268,122 | |||
Transfers Out | — | |||
|
| |||
Value, End of Period | $268,122 | |||
|
| |||
Change in Net Unrealized Appreciation (Depreciation) on Level 3 Investments Held at the End of Period, if Applicable | $— | |||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-23 |
A-17
PACIFIC LIFE FUNDS
PL HIGH INCOME FUND
Schedule of Investments
September 30, 2012 (Unaudited)
Shares | | |||||||
EXCHANGE-TRADED FUNDS - 4.6% |
| |||||||
iShares iBoxx $ High Yield Corporate Bond Fund | 1,100 | $101,530 | ||||||
PowerShares Senior Loan Portfolio | 12,000 | 299,400 | ||||||
SPDR Barclays Capital High Yield Bond ETF | 2,500 | 100,525 | ||||||
|
| |||||||
Total Exchange-Traded Funds |
| 501,455 | ||||||
|
| |||||||
Principal | ||||||||
CORPORATE BONDS & NOTES - 85.9% |
| |||||||
Consumer Discretionary - 14.9% |
| |||||||
99 Cents Only Stores | $50,000 | 56,375 | ||||||
American Axle & Manufacturing Inc | 50,000 | 50,875 | ||||||
Beazer Homes USA Inc | 25,000 | 25,375 | ||||||
Boyd Gaming Corp | 50,000 | 51,250 | ||||||
Cablevision Systems Corp | 100,000 | 116,750 | ||||||
Caesars Entertainment Operating Co Inc | 50,000 | 54,000 | ||||||
CCO Holdings LLC | ||||||||
6.625% due 01/31/22 | 50,000 | 54,875 | ||||||
7.250% due 10/30/17 | 25,000 | 27,375 | ||||||
Chrysler Group LLC | 50,000 | 53,250 | ||||||
CityCenter Holdings LLC | 50,000 | 53,625 | ||||||
CKE Restaurants Inc | 50,000 | 58,250 | ||||||
Clear Channel Communications Inc | 100,000 | 57,000 | ||||||
DISH DBS Corp | ||||||||
4.625% due 07/15/17 ~ | 50,000 | 51,375 | ||||||
6.750% due 06/01/21 | 100,000 | 109,500 | ||||||
Great Canadian Gaming Corp (Canada) | 25,000 | 26,352 | ||||||
Jo-Ann Stores Inc | 50,000 | 51,250 | ||||||
Limited Brands Inc | 50,000 | 54,125 | ||||||
MGM Resorts International | ||||||||
6.750% due 10/01/20 ~ | 50,000 | 50,125 | ||||||
7.625% due 01/15/17 | 100,000 | 106,500 | ||||||
Mohawk Industries Inc | 25,000 | 28,250 | ||||||
NPC International Inc | 50,000 | 57,750 | ||||||
Scientific Games International Inc | 50,000 | 50,312 | ||||||
Sinclair Television Group Inc | 50,000 | 50,313 | ||||||
Sirius XM Radio Inc | 25,000 | 25,000 | ||||||
Standard Pacific Corp | 100,000 | 115,875 | ||||||
The Ryland Group Inc | 50,000 | 50,250 | ||||||
The ServiceMaster Co | 50,000 | 53,250 | ||||||
Toys R Us Inc | 25,000 | 25,687 |
Principal | | |||||||
Wolverine World Wide Inc | $50,000 | $51,750 | ||||||
XM Satellite Radio Inc | 25,000 | 27,750 | ||||||
|
| |||||||
1,644,414 | ||||||||
|
| |||||||
Consumer Staples - 4.2% |
| |||||||
Agrokor DD (Croatia) | 50,000 | 50,000 | ||||||
Del Monte Corp | 50,000 | 51,687 | ||||||
JBS USA LLC | 50,000 | 50,125 | ||||||
Nufarm Australia Ltd (Australia) | 50,000 | 50,000 | ||||||
Reynolds Group Issuer Inc | ||||||||
5.750% due 10/15/20 ~ | 50,000 | 50,063 | ||||||
9.000% due 04/15/19 | 100,000 | 102,500 | ||||||
9.875% due 08/15/19 | 50,000 | 53,437 | ||||||
Spectrum Brands Inc | 50,000 | 51,812 | ||||||
|
| |||||||
459,624 | ||||||||
|
| |||||||
Energy - 16.0% |
| |||||||
Alpha Natural Resources Inc | 100,000 | 98,959 | ||||||
Arch Coal Inc | 50,000 | 42,000 | ||||||
Basic Energy Services Inc | 100,000 | 103,000 | ||||||
BreitBurn Energy Partners LP | 50,000 | 52,000 | ||||||
Bristow Group Inc | 50,000 | 51,375 | ||||||
Chaparral Energy Inc | 50,000 | 54,250 | ||||||
Chesapeake Energy Corp | 50,000 | 55,312 | ||||||
Cimarex Energy Co | 50,000 | 53,000 | ||||||
Concho Resources Inc | 50,000 | 52,188 | ||||||
Crosstex Energy LP | 50,000 | 53,594 | ||||||
Drill Rigs Holdings Inc | 50,000 | 49,813 | ||||||
EP Energy LLC | 50,000 | 53,562 | ||||||
EV Energy Partners LP | 50,000 | 52,125 | ||||||
Holly Energy Partners LP | 50,000 | 52,625 | ||||||
Key Energy Services Inc | 50,000 | 50,750 | ||||||
Linn Energy LLC | 100,000 | 106,250 | ||||||
MEG Energy Corp (Canada) | 50,000 | 53,438 | ||||||
Newfield Exploration Co | 50,000 | 55,563 | ||||||
OGX Austria GmbH (Austria) | 50,000 | 45,250 | ||||||
Peabody Energy Corp | 50,000 | 50,250 | ||||||
Plains Exploration & Production Co | 50,000 | 51,000 | ||||||
QEP Resources Inc | 50,000 | 51,250 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-23 |
A-18
PACIFIC LIFE FUNDS
PL HIGH INCOME FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | | |||||||
Regency Energy Partners LP | ||||||||
5.500% due 04/15/23 | $50,000 | $50,688 | ||||||
6.500% due 07/15/21 | 50,000 | 53,750 | ||||||
Sabine Pass LNG LP | 100,000 | 108,500 | ||||||
Samson Investment Co | 50,000 | 51,562 | ||||||
SandRidge Energy Inc | ||||||||
7.500% due 03/15/21 ~ | 50,000 | 51,750 | ||||||
8.000% due 06/01/18 ~ | 50,000 | 52,750 | ||||||
SESI LLC | 100,000 | 107,500 | ||||||
|
| |||||||
1,764,054 | ||||||||
|
| |||||||
Financials - 7.7% |
| |||||||
Ally Financial Inc | ||||||||
4.625% due 06/26/15 | 100,000 | 102,615 | ||||||
5.500% due 02/15/17 | 100,000 | 104,650 | ||||||
American International Group Inc | 50,000 | 61,438 | ||||||
CIT Group Inc | 75,000 | 81,562 | ||||||
DDR Corp REIT | 50,000 | 54,486 | ||||||
First Data Corp | ||||||||
6.750% due 11/01/20 ~ | 50,000 | 49,938 | ||||||
12.625% due 01/15/21 | 75,000 | 78,094 | ||||||
General Motors Financial Co Inc | 50,000 | 51,332 | ||||||
Host Hotels & Resorts LP REIT | 25,000 | 27,750 | ||||||
Hub International Ltd | 50,000 | 50,875 | ||||||
Liberty Mutual Group Inc | 25,000 | 27,250 | ||||||
Neuberger Berman Group LLC | 50,000 | 53,750 | ||||||
Nuveen Investments Inc | 50,000 | 50,000 | ||||||
Realogy Corp | 50,000 | 55,375 | ||||||
|
| |||||||
849,115 | ||||||||
|
| |||||||
Health Care - 10.2% |
| |||||||
Apria Healthcare Group Inc | 100,000 | 103,000 | ||||||
Biomet Inc | ||||||||
6.500% due 08/01/20 ~ | 50,000 | 51,937 | ||||||
6.500% due 10/01/20 ~ | 50,000 | 49,250 | ||||||
CDRT Holding Corp | 50,000 | 48,500 | ||||||
CHS/Community Health Systems Inc | ||||||||
5.125% due 08/15/18 | 25,000 | 26,000 | ||||||
7.125% due 07/15/20 | 50,000 | 53,406 | ||||||
DaVita Inc | 50,000 | 52,250 | ||||||
DJO Finance LLC | 50,000 | 45,875 | ||||||
Fresenius Medical Care US Finance II Inc | 50,000 | 53,625 | ||||||
HCA Inc | 150,000 | 163,313 | ||||||
HealthSouth Corp | 50,000 | 51,063 | ||||||
Mylan Inc | 50,000 | 53,250 | ||||||
Prospect Medical Holdings Inc | 50,000 | 53,250 |
Principal | | |||||||
Sky Growth Acquisition Corp | $50,000 | $50,438 | ||||||
Tenet Healthcare Corp | 50,000 | 53,937 | ||||||
Universal Hospital Services Inc | 50,000 | 52,250 | ||||||
Vanguard Health Holding Co II LLC | 100,000 | 107,250 | ||||||
VPI Escrow Corp | 50,000 | 51,250 | ||||||
|
| |||||||
1,119,844 | ||||||||
|
| |||||||
Industrials - 8.7% |
| |||||||
ADS Waste Holdings Inc | 50,000 | 51,125 | ||||||
Air Lease Corp | 50,000 | 51,250 | ||||||
Ashtead Capital Inc | 50,000 | 52,688 | ||||||
Avis Budget Car Rental LLC | 50,000 | 54,687 | ||||||
B/E Aerospace Inc | 50,000 | 52,125 | ||||||
Bombardier Inc (Canada) | 100,000 | 103,000 | ||||||
Continental Airlines Pass-Through Certificates ‘B’ | 50,000 | 51,250 | ||||||
Delta Air Lines Pass-Through Trust ‘A’ | 50,000 | 52,250 | ||||||
HD Supply Inc | 50,000 | 54,375 | ||||||
International Lease Finance Corp | 100,000 | 108,000 | ||||||
Nielsen Finance LLC | 50,000 | 49,937 | ||||||
Roofing Supply Group LLC | 50,000 | 54,750 | ||||||
U.S. Airways Pass-Through Trust ‘A’ | 98,394 | 107,249 | ||||||
United Rentals North America Inc | 50,000 | 53,750 | ||||||
UR Merger Sub Corp | 50,000 | 55,125 | ||||||
|
| |||||||
951,561 | ||||||||
|
| |||||||
Information Technology - 1.8% |
| |||||||
Advanced Micro Devices Inc | 50,000 | 48,500 | ||||||
CDW LLC | 50,000 | 54,625 | ||||||
Freescale Semiconductor Inc | 100,000 | 99,000 | ||||||
|
| |||||||
202,125 | ||||||||
|
| |||||||
Materials - 11.6% |
| |||||||
AK Steel Corp | 50,000 | 43,000 | ||||||
ArcelorMittal (Luxembourg) | 50,000 | 49,344 | ||||||
Ardagh Packaging Finance PLC (Ireland) | ||||||||
9.125% due 10/15/20 ~ | 25,000 | 26,563 | ||||||
9.125% due 10/15/20 ~ | 100,000 | 106,000 | ||||||
Berry Plastics Corp | 50,000 | 55,125 | ||||||
Boise Paper Holdings LLC | 100,000 | 110,500 | ||||||
Building Materials Corp of America | 50,000 | 53,875 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-23 |
A-19
PACIFIC LIFE FUNDS
PL HIGH INCOME FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | | |||||||
Consolidated Container Co LLC | $50,000 | $53,500 | ||||||
FMG Resources August 2006 Property Ltd (Australia) | ||||||||
6.875% due 02/01/18 ~ | 100,000 | 93,375 | ||||||
7.000% due 11/01/15 ~ | 50,000 | 50,000 | ||||||
Hexion U.S. Finance Corp | 50,000 | 44,875 | ||||||
Ineos Finance PLC (United Kingdom) | 50,000 | 51,000 | ||||||
Louisiana-Pacific Corp | 50,000 | 55,937 | ||||||
LyondellBasell Industries NV (Netherlands) | 50,000 | 53,375 | ||||||
Novelis Inc (Canada) | 50,000 | 54,875 | ||||||
PH Glatfelter Co | 50,000 | 50,750 | ||||||
Rock-Tenn Co | 50,000 | 50,946 | ||||||
Rockwood Specialties Group Inc | 50,000 | 50,938 | ||||||
Sappi Papier Holding GmbH (Austria) | 50,000 | 53,687 | ||||||
Sealed Air Corp | 100,000 | 112,500 | ||||||
Tronox Finance LLC | 50,000 | 50,687 | ||||||
|
| |||||||
1,270,852 | ||||||||
|
| |||||||
Telecommunication Services - 7.8% |
| |||||||
Clearwire Communications LLC | 50,000 | 49,500 | ||||||
Cricket Communications Inc | 50,000 | 49,000 | ||||||
Digicel Ltd (Bermuda) | 75,000 | 77,250 | ||||||
Frontier Communications Corp | ||||||||
7.125% due 01/15/23 | 50,000 | 52,188 | ||||||
8.250% due 04/15/17 | 50,000 | 57,000 | ||||||
Hughes Satellite Systems Corp | 100,000 | 111,250 | ||||||
Intelsat Luxembourg SA (Luxembourg) | 125,000 | 132,969 | ||||||
Level 3 Financing Inc | 50,000 | 50,687 | ||||||
SBA Telecommunications Inc | 50,000 | 52,687 | ||||||
Sprint Nextel Corp | ||||||||
7.000% due 08/15/20 | 50,000 | 52,187 | ||||||
9.000% due 11/15/18 ~ | 50,000 | 60,125 | ||||||
9.125% due 03/01/17 | 50,000 | 56,875 | ||||||
Telesat Canada (Canada) | 50,000 | 52,250 | ||||||
|
| |||||||
853,968 | ||||||||
|
| |||||||
Utilities - 3.0% |
| |||||||
AmeriGas Finance LLC | 50,000 | 54,000 | ||||||
GenOn Energy Inc | 50,000 | 55,750 | ||||||
NRG Energy Inc | 50,000 | 54,375 |
Principal | | |||||||
Puget Energy Inc | $50,000 | $53,250 | ||||||
The AES Corp | 100,000 | 114,500 | ||||||
|
| |||||||
331,875 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes | 9,447,432 | |||||||
|
| |||||||
Shares | ||||||||
SHORT-TERM INVESTMENT - 15.6% | ||||||||
Money Market Fund - 15.6% | ||||||||
BlackRock Liquidity Funds Treasury | 1,720,663 | 1,720,663 | ||||||
|
| |||||||
Total Short-Term Investment | 1,720,663 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 106.1% | 11,669,550 | |||||||
OTHER ASSETS & LIABILITIES, NET - (6.1%) | (667,572 | ) | ||||||
|
| |||||||
NET ASSETS - 100.0% | $11,001,978 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Energy | 16.0% | |||
Short-Term Investment | 15.6% | |||
Consumer Discretionary | 14.9% | |||
Materials | 11.6% | |||
Health Care | 10.2% | |||
Industrials | 8.7% | |||
Telecommunications Services | 7.8% | |||
Financials | 7.7% | |||
Exchange-Traded Funds | 4.6% | |||
Consumer Staples | 4.2% | |||
Utilities | 3.0% | |||
Information Technology | 1.8% | |||
|
| |||
106.1% | ||||
Other Assets & Liabilities, Net | (6.1% | ) | ||
|
| |||
100.0% | ||||
|
|
(b) | As of September 30, 2012, the fund’s Standard & Poor’s quality ratings as a percentage of total fixed income investments were as follows: |
A | 0.6% | |||
BBB | 6.6% | |||
BB | 37.3% | |||
B | 39.0% | |||
CCC | 16.0% | |||
Not Rated | 0.5% | |||
|
| |||
100.0% | ||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-23 |
A-20
PACIFIC LIFE FUNDS
PL HIGH INCOME FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
(c) | Fair Value Measurements |
The following is a summary of the fund’s investments as categorized under the three-tier hierarchy of inputs used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Exchange-Traded Funds | $501,455 | $501,455 | $— | $— | |||||||||||||
Corporate Bonds & Notes | 9,447,432 | — | 9,340,183 | 107,249 | ||||||||||||||
Short-Term Investment | 1,720,663 | 1,720,663 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $11,669,550 | $2,222,118 | $9,340,183 | $107,249 | ||||||||||||||
|
|
|
|
|
|
|
|
During the six-month period ended September 30, 2012, an investment with a value of $107,249 was transferred from level 2 to level 3 due to valuation being updated from an evaluated vendor price to a single broker quoted vendor price.
The following is a reconciliation of investments for significant unobservable inputs (Level 3) used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) for the six-month period ended September 30, 2012:
Corporate Bonds & Notes | ||||
Value, Beginning of Period | $— | |||
Purchases | — | |||
Sales | — | |||
Accrued Discounts (Premiums) | — | |||
Net Realized Gains (Losses) | — | |||
Change in Net Unrealized Appreciation (Depreciation) | — | |||
Transfers In | 107,249 | |||
Transfers Out | — | |||
|
| |||
Value, End of Period | $107,249 | |||
|
| |||
Change in Net Unrealized Appreciation (Depreciation) on Level 3 Investments Held at the End of Period, if Applicable | $— | |||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-23 |
A-21
PACIFIC LIFE FUNDS
PL MONEY MARKET FUND
Schedule of Investments
September 30, 2012 (Unaudited)
Principal | Value | |||||||
SHORT-TERM INVESTMENTS - 100.7% | ||||||||
Certificates of Deposit - 4.3% | ||||||||
Bank of Montreal Chicago IL | $1,300,000 | $1,300,000 | ||||||
|
| |||||||
Commercial Paper - 78.5% | ||||||||
AstraZeneca PLC (United Kingdom) | 1,000,000 | 999,778 | ||||||
Baker Hughes Inc | 1,250,000 | 1,249,819 | ||||||
Bank of Nova Scotia NY | 500,000 | 500,000 | ||||||
0.125% due 10/05/12 | 750,000 | 749,989 | ||||||
Dell Inc | 900,000 | 900,000 | ||||||
General Electric Capital Corp | 400,000 | 399,995 | ||||||
0.070% due 10/03/12 | 900,000 | 899,996 | ||||||
Google Inc | 1,300,000 | 1,299,971 | ||||||
Honeywell International Inc | 600,000 | 599,797 | ||||||
John Deere Bank SA (Luxembourg) | 1,000,000 | 999,942 | ||||||
Kimberly-Clark Worldwide Inc | 400,000 | 399,983 | ||||||
0.100% due 10/11/12 | 900,000 | 899,975 | ||||||
Medtronic Inc | 1,400,000 | 1,399,502 | ||||||
Nestle Capital Corp | 1,200,000 | 1,199,827 | ||||||
NetJets Inc | 900,000 | 899,990 | ||||||
Northwestern University | 1,000,000 | 999,833 | ||||||
Novartis Finance Corp | 500,000 | 499,998 | ||||||
Pfizer Inc | 750,000 | 749,981 | ||||||
Philip Morris International Inc | 1,000,000 | 999,956 | ||||||
Royal Bank of Canada (Canada) | 1,100,000 | 1,099,937 | ||||||
The Coca-Cola Co | 500,000 | 499,932 | ||||||
0.160% due 11/16/12 | 500,000 | 499,898 | ||||||
The Procter & Gamble Co | 800,000 | 799,995 | ||||||
The Walt Disney Co | 400,000 | 399,982 | ||||||
0.120% due 11/20/12 | 1,000,000 | 999,833 |
Principal | Value | |||||||
Toyota Motor Credit Corp | $750,000 | $749,908 | ||||||
0.210% due 10/22/12 | 500,000 | 499,939 | ||||||
Wal-Mart Stores Inc | 1,400,000 | 1,399,996 | ||||||
|
| |||||||
23,597,752 | ||||||||
|
| |||||||
U.S. Treasury Bills - 17.5% | ||||||||
0.099% due 11/15/12 | 1,250,000 | 1,249,844 | ||||||
0.100% due 10/25/12 | 1,250,000 | 1,249,917 | ||||||
0.101% due 12/06/12 | 1,250,000 | 1,249,765 | ||||||
0.107% due 12/27/12 | 1,500,000 | 1,499,612 | ||||||
|
| |||||||
5,249,138 | ||||||||
|
| |||||||
Shares | ||||||||
Money Market Fund - 0.4% | ||||||||
BlackRock Liquidity Funds Treasury | 103,157 | 103,157 | ||||||
|
| |||||||
Total Short-Term Investments | 30,250,047 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 100.7% | 30,250,047 | |||||||
OTHER ASSETS & LIABILITIES, NET - (0.7%) |
| (203,313 | ) | |||||
|
| |||||||
NET ASSETS - 100.0% | $30,046,734 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Commercial Paper | 78.5% | |||
U.S. Treasury Bills | 17.5% | |||
Certificates of Deposit | 4.3% | |||
Money Market Fund | 0.4% | |||
|
| |||
100.7% | ||||
Other Assets & Liabilities, Net | (0.7% | ) | ||
|
| |||
100.0% | ||||
|
|
(b) | As of September 30, 2012, the fund’s Standard & Poor’s quality ratings as a percentage of total fixed income investments were as follows: |
A-1 (Short Term Debt Only) | 100.0% | |||
|
|
(c) | Short-term investments reflect either the stated coupon rate or the annualized effective yield on the date of purchase for discounted investments. |
(d) | Fair Value Measurements |
The following is a summary of the fund’s investments as categorized under the three-tier hierarchy of inputs used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Short-Term Investments | $30,250,047 | $103,157 | $30,146,890 | $— | |||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of��symbols and terms, if any, on page A-23 |
A-22
PACIFIC LIFE FUNDS
Schedule of Investments (Continued)
Explanation of Symbols and Terms
September 30, 2012 (Unaudited)
Explanation of Symbols: | ||
* | Non-income producing investments. | |
~ | Securities are not registered under the Securities Act of 1933 (1933 Act). These securities are either (1) exempt from registration pursuant to Rule 144A under 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. | |
§ | Variable rate investments. The rate shown is based on the latest available information as of September 30, 2012. For senior loan notes, the rate shown may represent a weighted average interest rate. | |
µ | Unsettled position. Contract rates do not take effect until settlement date. | |
r | Illiquid Investments. Investments were reported as illiquid by the portfolio manager pursuant to the Trust’s policy and procedures (See Note 4 in Notes to Financial Statements). | |
Currency Abbreviation: | ||
CAD | Canadian Dollar | |
Other Abbreviation: | ||
REIT | Real Estate Investment Trust |
Note:
The countries listed in the Schedules of Investments are based on country of incorporation.
See Notes to Financial Statements |
A-23
PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
September 30, 2012 (Unaudited)
PL Portfolio Optimization Funds | ||||||||||||||||||||
Conservative Fund | Moderate- Conservative Fund | Moderate Fund | Moderate- Fund | Aggressive Fund | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Investments in affiliated mutual funds, at cost | $414,039,154 | $386,076,847 | $987,007,543 | $665,160,931 | $194,267,330 | |||||||||||||||
Investments in affiliated mutual funds, at value | $456,196,514 | $433,777,210 | $1,121,490,688 | $767,120,067 | $237,555,201 | |||||||||||||||
Receivables: | ||||||||||||||||||||
Fund shares sold | 2,139,258 | 1,717,156 | 4,225,628 | 1,685,347 | 377,604 | |||||||||||||||
Securities sold | — | — | — | — | 188,698 | |||||||||||||||
Due from adviser | 37,174 | 36,420 | 87,069 | 64,063 | 23,162 | |||||||||||||||
Prepaid expenses and other assets | 12,901 | 2,302 | 7,162 | 4,558 | 1,498 | |||||||||||||||
Total Assets | 458,385,847 | 435,533,088 | 1,125,810,547 | 768,874,035 | 238,146,163 | |||||||||||||||
LIABILITIES | ||||||||||||||||||||
Payables: | ||||||||||||||||||||
Fund shares redeemed | 1,215,619 | 1,806,758 | 2,470,047 | 1,958,605 | 639,748 | |||||||||||||||
Securities purchased | 237,347 | 782,591 | 1,177,310 | 212,261 | — | |||||||||||||||
Accrued advisory fees | 73,674 | 70,782 | 183,224 | 126,092 | 39,278 | |||||||||||||||
Accrued administration fees | 55,256 | 53,087 | 137,418 | 94,569 | 29,459 | |||||||||||||||
Accrued support service expenses | 25,692 | 24,319 | 63,852 | 44,521 | 13,716 | |||||||||||||||
Accrued custodian fees and expenses | 2,901 | 2,901 | 2,901 | 2,901 | 2,901 | |||||||||||||||
Accrued transfer agency out-of-pocket expenses | 23,150 | 22,904 | 64,218 | 49,769 | 15,324 | |||||||||||||||
Accrued legal, audit and tax service fees | 37,125 | 35,466 | 93,018 | 65,445 | 20,205 | |||||||||||||||
Accrued trustees’ fees and expenses and deferred compensation | 1,053 | 954 | 2,243 | 1,424 | 350 | |||||||||||||||
Accrued distribution and/or service fees | 47,390 | 43,989 | 111,828 | 77,557 | 23,267 | |||||||||||||||
Accrued other | 45,826 | 45,638 | 113,660 | 86,092 | 28,169 | |||||||||||||||
Total Liabilities | 1,765,033 | 2,889,389 | 4,419,719 | 2,719,236 | 812,417 | |||||||||||||||
NET ASSETS | $456,620,814 | $432,643,699 | $1,121,390,828 | $766,154,799 | $237,333,746 | |||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||||||
Paid-in capital | $418,499,861 | $395,147,534 | $1,019,099,920 | $713,159,787 | $233,729,223 | |||||||||||||||
Accumulated net investment loss | (2,547,198 | ) | (1,692,933 | ) | (3,361,767 | ) | (1,983,023 | ) | (680,913 | ) | ||||||||||
Accumulated net realized loss | (1,489,209 | ) | (8,511,265 | ) | (28,830,470 | ) | (46,981,101 | ) | (39,002,435 | ) | ||||||||||
Net unrealized appreciation on investments | 42,157,360 | 47,700,363 | 134,483,145 | 101,959,136 | 43,287,871 | |||||||||||||||
NET ASSETS | $456,620,814 | $432,643,699 | $1,121,390,828 | $766,154,799 | $237,333,746 | |||||||||||||||
Class A Shares: | ||||||||||||||||||||
Net Assets | $216,446,448 | $216,686,200 | $574,376,319 | $385,729,170 | $124,695,354 | |||||||||||||||
Shares of beneficial interest outstanding | 18,873,654 | 18,262,046 | 45,956,723 | 30,824,712 | 9,953,066 | |||||||||||||||
Net Asset Value per share* | $11.47 | $11.87 | $12.50 | $12.51 | $12.53 | |||||||||||||||
Sales Charge (1) | 0.67 | 0.69 | 0.73 | 0.73 | 0.73 | |||||||||||||||
Maximum offering price per share | $12.14 | $12.56 | $13.23 | $13.24 | $13.26 | |||||||||||||||
Class B Shares: | ||||||||||||||||||||
Net Assets | $38,256,860 | $45,486,723 | $125,512,410 | $98,092,057 | $31,526,240 | |||||||||||||||
Shares of beneficial interest outstanding | 3,379,185 | 3,879,276 | 10,149,240 | 7,941,588 | 2,583,501 | |||||||||||||||
Net Asset Value and offering price per share* | $11.32 | $11.73 | $12.37 | $12.35 | $12.20 | |||||||||||||||
Class C Shares: | ||||||||||||||||||||
Net Assets | $190,643,421 | $164,515,656 | $396,622,962 | $267,417,006 | $74,936,849 | |||||||||||||||
Shares of beneficial interest outstanding | 16,843,746 | 14,026,047 | 32,100,448 | 21,691,573 | 6,141,347 | |||||||||||||||
Net Asset Value and offering price per share* | $11.32 | $11.73 | $12.36 | $12.33 | $12.20 | |||||||||||||||
Class R Shares: | ||||||||||||||||||||
Net Assets | $11,274,085 | $5,955,120 | $24,879,137 | $14,916,566 | $6,175,303 | |||||||||||||||
Shares of beneficial interest outstanding | 987,386 | 504,190 | 1,997,263 | 1,194,940 | 496,531 | |||||||||||||||
Net Asset Value per share | $11.42 | $11.81 | $12.46 | $12.48 | $12.44 |
* | Redemption price per share is equal to the Net Asset Value per share less any applicable contingent deferred sales charge. |
(1) | The PL Portfolio Optimization Funds are subject to a maximum 5.50% front-end sales charge. |
See Notes to Financial Statements |
B-1
PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
September 30, 2012 (Unaudited)
PL Short Duration Income Fund | PL Income Fund | PL Strategic Fund | PL Floating Rate Income Fund | PL High Income Fund | PL Money Market Fund | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Investments, at cost | $17,199,418 | $505,931,861 | $24,497,591 | $104,798,864 | $11,239,200 | $30,250,047 | ||||||||||||||||||
Investments, at value | $17,528,765 | $518,647,911 | $25,394,972 | $106,031,018 | $11,669,550 | $30,250,047 | ||||||||||||||||||
Receivables: | ||||||||||||||||||||||||
Dividends and interest | 98,059 | 3,503,570 | 305,137 | 680,778 | 149,363 | 19 | ||||||||||||||||||
Fund shares sold | 89,139 | 4,209,802 | 689,041 | 3,281,518 | 484,428 | 17,836 | ||||||||||||||||||
Securities sold | 252,796 | 14,518,983 | 2,964,601 | 9,354,243 | 277,313 | — | ||||||||||||||||||
Due from adviser | 1,718 | 45,091 | 3,111 | 13,385 | 2,142 | 8,475 | ||||||||||||||||||
Unfunded loan commitment appreciation | — | — | — | 3,000 | — | — | ||||||||||||||||||
Prepaid expenses and other assets | 18,741 | 5,669 | 20,959 | 12,565 | 18,708 | 19,771 | ||||||||||||||||||
Total Assets | 17,989,218 | 540,931,026 | 29,377,821 | 119,376,507 | 12,601,504 | 30,296,148 | ||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||
Fund shares redeemed | — | 1,390,526 | 290 | 612,547 | 103 | 229,876 | ||||||||||||||||||
Securities purchased | 1,448,219 | 44,022,700 | 3,762,933 | 22,400,475 | 1,583,368 | — | ||||||||||||||||||
Income distributions | 1,438 | 225,895 | 4,326 | 64,403 | 2,320 | — | ||||||||||||||||||
Accrued advisory fees | 4,961 | 197,677 | 11,752 | 48,496 | 4,721 | — | ||||||||||||||||||
Accrued administration fees | 1,860 | 59,303 | 2,938 | 11,192 | 1,180 | — | ||||||||||||||||||
Accrued support service expenses | 748 | 24,321 | 1,122 | 4,242 | 374 | 1,871 | ||||||||||||||||||
Accrued custodian fees and expenses | 5,022 | 8,964 | 6,675 | 7,304 | 4,334 | 5,375 | ||||||||||||||||||
Accrued transfer agency out-of-pocket expenses | 170 | 14,860 | 255 | — | 86 | 1,897 | ||||||||||||||||||
Accrued legal, audit and tax service fees | 1,088 | 32,531 | 1,632 | 5,909 | 544 | 2,923 | ||||||||||||||||||
Accrued trustees’ fees and expenses and deferred compensation | 13 | 411 | 19 | 72 | 6 | 3,295 | ||||||||||||||||||
Accrued distribution and/or service fees | 337 | 36,029 | 403 | 4,633 | 233 | 596 | ||||||||||||||||||
Accrued other | 2,373 | 43,367 | 4,295 | 1,502 | 2,257 | 3,581 | ||||||||||||||||||
Total Liabilities | 1,466,229 | 46,056,584 | 3,796,640 | 23,160,775 | 1,599,526 | 249,414 | ||||||||||||||||||
NET ASSETS | $16,522,989 | $494,874,442 | $25,581,181 | $96,215,732 | $11,001,978 | $30,046,734 | ||||||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||||||||||
Paid-in capital | $16,012,013 | $471,386,247 | $23,998,837 | $94,091,106 | $10,326,101 | $30,050,538 | ||||||||||||||||||
Undistributed/accumulated net investment income (loss) | 2,881 | 92,480 | 8,704 | 32,226 | 4,055 | (3,657 | ) | |||||||||||||||||
Undistributed/accumulated net realized gain (loss) | 178,748 | 10,679,665 | 676,255 | 857,246 | 241,470 | (147 | ) | |||||||||||||||||
Net unrealized appreciation (depreciation) on investments | 329,347 | 12,716,050 | 897,385 | 1,235,154 | 430,352 | — | ||||||||||||||||||
NET ASSETS | $16,522,989 | $494,874,442 | $25,581,181 | $96,215,732 | $11,001,978 | $30,046,734 | ||||||||||||||||||
Class A Shares: | ||||||||||||||||||||||||
Net Assets | $1,906,593 | $356,849,096 | $3,193,938 | $38,419,250 | $1,643,456 | $28,987,879 | ||||||||||||||||||
Shares of beneficial interest outstanding | 183,327 | 32,327,586 | 291,157 | 3,732,092 | 149,404 | 28,998,836 | ||||||||||||||||||
Net Asset Value per share* | $10.40 | $11.04 | $10.97 | $10.29 | $11.00 | $1.00 | ||||||||||||||||||
Sales Charge (1) | 0.32 | 0.49 | 0.49 | 0.32 | 0.49 | — | ||||||||||||||||||
Maximum offering price per share | $10.72 | $11.53 | $11.46 | $10.61 | $11.49 | $1.00 | ||||||||||||||||||
Class B Shares: | ||||||||||||||||||||||||
Net Assets | $331,656 | |||||||||||||||||||||||
Shares of beneficial interest outstanding | 331,656 | |||||||||||||||||||||||
Net Asset Value and offering price per share* | $1.00 | |||||||||||||||||||||||
Class C Shares: | ||||||||||||||||||||||||
Net Assets | $1,645,033 | $129,890,230 | $1,850,623 | $19,044,996 | $1,134,054 | $727,199 | ||||||||||||||||||
Shares of beneficial interest outstanding | 158,325 | 11,759,612 | 168,783 | 1,851,187 | 103,198 | 727,199 | ||||||||||||||||||
Net Asset Value and offering price per share* | $10.39 | $11.05 | $10.96 | $10.29 | $10.99 | $1.00 | ||||||||||||||||||
Class I Shares: | ||||||||||||||||||||||||
Net Assets | $12,885,967 | $1,831,258 | $20,314,223 | $37,333,476 | $8,219,192 | |||||||||||||||||||
Shares of beneficial interest outstanding | 1,241,484 | 165,715 | 1,861,508 | 3,622,762 | 752,303 | |||||||||||||||||||
Net Asset Value per share | $10.38 | $11.05 | $10.91 | $10.31 | $10.93 | |||||||||||||||||||
Advisor Class: | ||||||||||||||||||||||||
Net Assets | $85,396 | $6,303,858 | $222,397 | $1,418,010 | $5,276 | |||||||||||||||||||
Shares of beneficial interest outstanding | 8,211 | 569,879 | 20,275 | 137,393 | 479 | |||||||||||||||||||
Net Asset Value per share | $10.40 | $11.06 | $10.97 | $10.32 | $11.01 |
* | Redemption price per share is equal to the Net Asset Value per share less any applicable contingent deferred sales charge. |
(1) | The PL Short Duration Income and PL Floating Rate Income Funds are subject to a maximum 3.00% front-end sales charge. The PL Income, PL Strategic Income and PL High Income Funds are subject to a maximum 4.25% front-end sales charge. The PL Money Market is not subject to a front-end sales charge. |
See Notes to Financial Statements |
B-2
PACIFIC LIFE FUNDS
FOR THE SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2012 (Unaudited)
PL Portfolio Optimization Funds | ||||||||||||||||||||
Conservative Fund | Moderate- Conservative Fund | Moderate Fund | Moderate- Fund | Aggressive Fund | ||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||
Total Investment Income (1) | $— | $— | $— | $— | $— | |||||||||||||||
EXPENSES | ||||||||||||||||||||
Advisory fees | 417,271 | 403,316 | 1,053,784 | 732,449 | 231,087 | |||||||||||||||
Administration fees | 312,953 | 302,487 | 790,338 | 549,337 | 173,315 | |||||||||||||||
Support services expenses | 35,489 | 33,740 | 88,750 | 62,138 | 19,521 | |||||||||||||||
Custodian fees and expenses | 4,346 | 4,346 | 4,346 | 4,346 | 4,346 | |||||||||||||||
Shareholder report expenses | 31,782 | 30,173 | 78,910 | 55,217 | 17,027 | |||||||||||||||
Distribution and/or service fees (2) | ||||||||||||||||||||
Class A | 248,196 | 249,993 | 671,017 | 458,010 | 150,780 | |||||||||||||||
Class B | 177,503 | 214,067 | 591,991 | 473,964 | 154,104 | |||||||||||||||
Class C | 861,175 | 771,569 | 1,874,019 | 1,283,292 | 365,237 | |||||||||||||||
Class R | 27,445 | 15,487 | 59,420 | 36,474 | 16,486 | |||||||||||||||
Transfer agency out-of-pocket expenses | 51,810 | 52,453 | 145,379 | 113,112 | 35,249 | |||||||||||||||
Registration fees | 44,827 | 47,114 | 74,474 | 60,932 | 40,171 | |||||||||||||||
Legal, audit and tax service fees | 39,944 | 37,932 | 99,660 | 69,702 | 21,672 | |||||||||||||||
Trustees’ fees and expenses | 7,600 | 7,223 | 19,022 | 13,319 | 4,185 | |||||||||||||||
Other | 12,499 | 10,778 | 28,662 | 17,700 | 7,543 | |||||||||||||||
Total Expenses | 2,272,840 | 2,180,678 | 5,579,772 | 3,929,992 | 1,240,723 | |||||||||||||||
Adviser Reimbursement (3) | (228,297 | ) | (225,080 | ) | (541,452 | ) | (400,901 | ) | (149,714 | ) | ||||||||||
Net Expenses | 2,044,543 | 1,955,598 | 5,038,320 | 3,529,091 | 1,091,009 | |||||||||||||||
NET INVESTMENT LOSS | (2,044,543 | ) | (1,955,598 | ) | (5,038,320 | ) | (3,529,091 | ) | (1,091,009 | ) | ||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||
Net Realized Gain (Loss) On: | ||||||||||||||||||||
Investment security transactions in affiliated mutual funds (1) | 1,485,251 | 784,565 | 3,417,551 | 478,179 | 300,530 | |||||||||||||||
Investment security transactions | 3 | 3 | 7 | 5 | 2 | |||||||||||||||
Net Realized Gain | 1,485,254 | 784,568 | 3,417,558 | 478,184 | 300,532 | |||||||||||||||
Change In Net Unrealized Appreciation (Depreciation) On: | ||||||||||||||||||||
Investment securities in affiliated mutual funds | 15,336,169 | 11,890,996 | 22,078,847 | 8,714,390 | (212,696 | ) | ||||||||||||||
Change in Net Unrealized Appreciation (Depreciation) | 15,336,169 | 11,890,996 | 22,078,847 | 8,714,390 | (212,696 | ) | ||||||||||||||
NET GAIN | 16,821,423 | 12,675,564 | 25,496,405 | 9,192,574 | 87,836 | |||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | $14,776,880 | $10,719,966 | $20,458,085 | $5,663,483 | ($1,003,173 | ) |
(1) | For the six-month period ended September 30, 2012, the PL Underlying Funds did not declare and pay dividends and capital gain distributions. |
(2) | See Notes 1 and 5 in Notes to Financial Statements. |
(3) | See Note 6B in Notes to Financial Statements. |
See Notes to Financial Statements |
B-3
PACIFIC LIFE FUNDS
STATEMENTS OF OPERATIONS (Continued)
FOR THE SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2012 (Unaudited)
PL Short Duration Income Fund | PL Income Fund | PL Strategic Fund | PL Floating Rate Income | PL High Income | PL Money Market | |||||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||||||
Dividends, net of foreign taxes withheld | $25 | $1,160 | $23,695 | $372 | $3,941 | $7 | ||||||||||||||||||
Interest, net of foreign taxes withheld | 200,159 | 7,532,719 | 547,036 | 2,056,953 | 279,921 | 18,125 | ||||||||||||||||||
Other | 86 | — | — | 15,070 | — | — | ||||||||||||||||||
Total Investment Income | 200,270 | 7,533,879 | 570,731 | 2,072,395 | 283,862 | 18,132 | ||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||
Advisory fees | 26,016 | 1,033,976 | 59,039 | 246,094 | 24,424 | 30,914 | ||||||||||||||||||
Administration fees | 10,114 | 619,284 | 15,457 | 81,952 | 6,364 | 46,371 | ||||||||||||||||||
Support services expenses | 1,038 | 32,915 | 1,556 | 5,380 | 519 | 2,632 | ||||||||||||||||||
Custodian fees and expenses | 3,558 | 15,348 | 6,586 | 10,664 | 4,106 | 7,312 | ||||||||||||||||||
Shareholder report expenses | 1,005 | 30,152 | 1,281 | 7,410 | 502 | 2,286 | ||||||||||||||||||
Distribution and/or service fees (1) | ||||||||||||||||||||||||
Class A | 317 | 384,543 | 638 | 28,205 | 284 | 38,374 | ||||||||||||||||||
Class B | — | — | — | — | — | 446 | ||||||||||||||||||
Class C | 1,081 | 513,797 | 1,832 | 54,284 | 571 | 631 | ||||||||||||||||||
Advisor Class | 9 | 2,159 | 65 | 159 | 3 | — | ||||||||||||||||||
Transfer agency out-of-pocket expenses | 396 | 47,282 | 594 | 6,669 | 198 | 2,775 | ||||||||||||||||||
Registration fees | 1,642 | 78,751 | 1,711 | 30,158 | 1,573 | 31,609 | ||||||||||||||||||
Legal, audit and tax service fees | 1,167 | 37,094 | 1,749 | 6,319 | 583 | 2,964 | ||||||||||||||||||
Trustees’ fees and expenses | 209 | 6,982 | 314 | 1,137 | 104 | 564 | ||||||||||||||||||
Offering expenses | 38,053 | — | 38,053 | 28,099 | 38,053 | — | ||||||||||||||||||
Other | 3,452 | 22,018 | 8,183 | 3,884 | 5,763 | 3,883 | ||||||||||||||||||
Total Expenses | 88,057 | 2,824,301 | 137,058 | 510,414 | 83,047 | 170,761 | ||||||||||||||||||
Advisory Fee Waiver (2) | — | — | — | — | — | (30,914 | ) | |||||||||||||||||
Adviser Reimbursement (2) | (47,624 | ) | (579,634 | ) | (55,804 | ) | (124,881 | ) | (49,623 | ) | (54,025 | ) | ||||||||||||
Administration Fee Waiver (2) | — | — | — | — | — | (46,371 | ) | |||||||||||||||||
Service Fee Waiver (2) | — | — | — | — | — | (21,319 | ) | |||||||||||||||||
Net Expenses | 40,433 | 2,244,667 | 81,254 | 385,533 | 33,424 | 18,132 | ||||||||||||||||||
NET INVESTMENT INCOME (LOSS) | 159,837 | 5,289,212 | 489,477 | 1,686,862 | 250,438 | — | ||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||||||
Net Realized Gain (Loss) On: | ||||||||||||||||||||||||
Investment security transactions | 122,618 | 7,594,648 | 447,646 | 915,981 | 129,758 | 2 | ||||||||||||||||||
Foreign currency transactions | — | — | 246 | — | 123 | — | ||||||||||||||||||
Net Realized Gain | 122,618 | 7,594,648 | 447,892 | 915,981 | 129,881 | 2 | ||||||||||||||||||
Change In Net Unrealized Appreciation (Depreciation) On: | ||||||||||||||||||||||||
Investment securities | 194,807 | 8,886,673 | 551,372 | 787,708 | 159,168 | — | ||||||||||||||||||
Unfunded loan commitments | — | — | — | 3,000 | — | — | ||||||||||||||||||
Foreign currency transactions | — | — | 4 | — | 2 | — | ||||||||||||||||||
Change in Net Unrealized Appreciation (Depreciation) | 194,807 | 8,886,673 | 551,376 | 790,708 | 159,170 | — | ||||||||||||||||||
NET GAIN | 317,425 | 16,481,321 | 999,268 | 1,706,689 | 289,051 | 2 | ||||||||||||||||||
NET INCREASE IN NET ASSETS | $477,262 | $21,770,533 | $1,488,745 | $3,393,551 | $539,489 | $2 | ||||||||||||||||||
Foreign taxes withheld on dividends and interest | $— | $— | $92 | $— | $31 | $— |
(1) | See Notes 1 and 5 in Notes to Financial Statements. |
(2) | See Note 6B in Notes to Financial Statements. |
See Notes to Financial Statements |
B-4
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
PL Portfolio Optimization | PL Portfolio Optimization Moderate-Conservative Fund | PL Portfolio Optimization Moderate Fund | ||||||||||||||||||||||
Six-Month Period Ended September 30, 2012 (1) | Year Ended March 31, 2012 | Six-Month Period Ended September 30, 2012 (1) | Year Ended March 31, 2012 | Six-Month Period Ended September 30, 2012 (1) | Year Ended March 31, 2012 | |||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||
Net investment income (loss) | ($2,044,543 | ) | $5,189,027 | ($1,955,598 | ) | $4,037,287 | ($5,038,320 | ) | $7,197,426 | |||||||||||||||
Net realized gain | 1,485,254 | 3,277,663 | 784,568 | 2,167,499 | 3,417,558 | 5,835,612 | ||||||||||||||||||
Change in net unrealized appreciation | 15,336,169 | 6,885,771 | 11,890,996 | 9,994,683 | 22,078,847 | 31,124,333 | ||||||||||||||||||
Net Increase in Net Assets | 14,776,880 | 15,352,461 | 10,719,966 | 16,199,469 | 20,458,085 | 44,157,371 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||
Class A | — | (3,963,242 | ) | — | (3,227,833 | ) | — | (6,896,937 | ) | |||||||||||||||
Class B | — | (582,094 | ) | — | (513,693 | ) | — | (890,273 | ) | |||||||||||||||
Class C | — | (2,791,770 | ) | — | (1,709,111 | ) | — | (2,663,615 | ) | |||||||||||||||
Class R | — | (238,985 | ) | — | (297,928 | ) | — | (267,714 | ) | |||||||||||||||
Net realized gains | ||||||||||||||||||||||||
Class A | — | (463,189 | ) | — | — | — | — | |||||||||||||||||
Class B | — | (88,712 | ) | — | — | — | — | |||||||||||||||||
Class C | — | (435,773 | ) | — | — | — | — | |||||||||||||||||
Class R | — | (30,666 | ) | — | — | — | — | |||||||||||||||||
Net Decrease from Dividends and | — | (8,594,431 | ) | — | (5,748,565 | ) | — | (10,718,539 | ) | |||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||
Class A | 52,558,193 | 102,650,253 | 43,805,523 | 87,677,363 | 94,287,364 | 216,395,619 | ||||||||||||||||||
Class B | 6,190,699 | 13,149,877 | 6,960,829 | 15,240,310 | 16,233,340 | 32,094,003 | ||||||||||||||||||
Class C | 43,524,190 | 86,058,302 | 27,480,619 | 56,767,607 | 52,461,584 | 114,353,551 | ||||||||||||||||||
Class R | 2,291,627 | 5,023,414 | 766,260 | 7,592,421 | 4,170,201 | 11,467,594 | ||||||||||||||||||
Dividends and distribution reinvestments | �� | |||||||||||||||||||||||
Class A | — | 3,886,280 | — | 2,943,320 | — | 6,444,881 | ||||||||||||||||||
Class B | — | 588,109 | — | 474,922 | — | 849,836 | ||||||||||||||||||
Class C | — | 2,793,302 | — | 1,540,112 | — | 2,433,641 | ||||||||||||||||||
Class R | — | 269,651 | — | 297,928 | — | 267,001 | ||||||||||||||||||
Cost of shares repurchased | ||||||||||||||||||||||||
Class A | (26,423,527 | ) | (56,980,878 | ) | (21,489,661 | ) | (40,032,576 | ) | (49,322,941 | ) | (107,176,991 | ) | ||||||||||||
Class B | (2,246,301 | ) | (3,481,193 | ) | (3,320,245 | ) | (4,517,933 | ) | (8,317,944 | ) | (13,415,950 | ) | ||||||||||||
Class C | (17,429,448 | ) | (50,444,496 | ) | (11,686,591 | ) | (24,889,408 | ) | (29,021,629 | ) | (70,089,870 | ) | ||||||||||||
Class R | (1,925,888 | ) | (3,836,556 | ) | (1,265,726 | ) | (16,849,072 | ) | (3,089,633 | ) | (12,699,459 | ) | ||||||||||||
Net Increase in Net Assets from | 56,539,545 | 99,676,065 | 41,251,008 | 86,244,994 | 77,400,342 | 180,923,856 | ||||||||||||||||||
NET INCREASE IN NET ASSETS | 71,316,425 | 106,434,095 | 51,970,974 | 96,695,898 | 97,858,427 | 214,362,688 | ||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||
Beginning of Year or Period | 385,304,389 | 278,870,294 | 380,672,725 | 283,976,827 | 1,023,532,401 | 809,169,713 | ||||||||||||||||||
End of Year or Period | $456,620,814 | $385,304,389 | $432,643,699 | $380,672,725 | $1,121,390,828 | $1,023,532,401 | ||||||||||||||||||
Undistributed/Accumulated Net Investment Income (Loss) | ($2,547,198 | ) | ($502,655 | ) | ($1,692,933 | ) | $262,665 | ($3,361,767 | ) | $1,676,553 |
(1) | Unaudited. |
See Notes to Financial Statements |
B-5
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
PL Portfolio Optimization | PL Portfolio Optimization Aggressive Fund | |||||||||||||||
Six-Month Period Ended September 30, 2012 (1) | Year Ended March 31, 2012 | Six-Month Period Ended September 30, 2012 (1) | Year Ended March 31, 2012 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | ($3,529,091 | ) | $2,919,713 | ($1,091,009 | ) | $372,230 | ||||||||||
Net realized gain | 478,184 | 3,749,164 | 300,532 | 130,355 | ||||||||||||
Change in net unrealized appreciation (depreciation) | 8,714,390 | 20,625,477 | (212,696 | ) | 4,646,591 | |||||||||||
Net Increase (Decrease) in Net Assets | 5,663,483 | 27,294,354 | (1,003,173 | ) | 5,149,176 | |||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Net investment income | ||||||||||||||||
Class A | — | (3,489,595 | ) | — | (561,009 | ) | ||||||||||
Class B | — | (329,689 | ) | — | — | |||||||||||
Class C | — | (803,908 | ) | — | — | |||||||||||
Class R | — | (158,188 | ) | — | (14,803 | ) | ||||||||||
Net realized gains | ||||||||||||||||
Class A | — | — | — | — | ||||||||||||
Class B | — | — | — | — | ||||||||||||
Class C | — | — | — | — | ||||||||||||
Class R | — | — | — | — | ||||||||||||
Net Decrease from Dividends and | — | (4,781,380 | ) | — | (575,812 | ) | ||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||
Class A | 47,841,403 | 117,617,903 | 15,312,825 | 31,784,559 | ||||||||||||
Class B | 8,895,076 | 21,114,174 | 2,321,972 | 5,002,321 | ||||||||||||
Class C | 27,954,165 | 59,635,150 | 8,683,218 | 24,218,955 | ||||||||||||
Class R | 2,672,473 | 9,034,035 | 1,028,839 | 4,243,854 | ||||||||||||
Dividends and distribution reinvestments | ||||||||||||||||
Class A | — | 3,328,483 | — | 536,454 | ||||||||||||
Class B | — | 317,388 | — | — | ||||||||||||
Class C | — | 751,703 | — | — | ||||||||||||
Class R | — | 158,188 | — | 14,803 | ||||||||||||
Cost of shares repurchased | ||||||||||||||||
Class A | (31,063,442 | ) | (68,423,799 | ) | (12,780,109 | ) | (26,695,077 | ) | ||||||||
Class B | (7,236,839 | ) | (12,303,686 | ) | (2,548,684 | ) | (4,355,282 | ) | ||||||||
Class C | (19,161,839 | ) | (41,950,485 | ) | (9,796,947 | ) | (24,561,074 | ) | ||||||||
Class R | (2,596,207 | ) | (11,879,593 | ) | (1,525,320 | ) | (3,221,587 | ) | ||||||||
Net Increase in Net Assets from | 27,304,790 | 77,399,461 | 695,794 | 6,967,926 | ||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | 32,968,273 | 99,912,435 | (307,379 | ) | 11,541,290 | |||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Year or Period | 733,186,526 | 633,274,091 | 237,641,125 | 226,099,835 | ||||||||||||
End of Year or Period | $766,154,799 | $733,186,526 | $237,333,746 | $237,641,125 | ||||||||||||
Undistributed/Accumulated Net Investment Income (Loss) | ($1,983,023 | ) | $1,546,068 | ($680,913 | ) | $410,096 |
(1) | Unaudited. |
See Notes to Financial Statements |
B-6
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
PL Short Duration | PL Income Fund | PL Strategic Income Fund (1) | ||||||||||||||||||||||
Six-Month Period Ended September 30, 2012 (2) | Period Ended March 31, 2012 | Six-Month Period Ended September 30, 2012 (2) | Period Ended March 31, 2012 | Six-Month Period Ended September 30, 2012 (2) | Period Ended March 31, 2012 | |||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||
Net investment income | $159,837 | $60,554 | $5,289,212 | $4,544,980 | $489,477 | $221,490 | ||||||||||||||||||
Net realized gain | 122,618 | 56,130 | 7,594,648 | 3,201,825 | 447,892 | 228,363 | ||||||||||||||||||
Change in net unrealized appreciation | 194,807 | 134,540 | 8,886,673 | 3,709,953 | 551,376 | 346,009 | ||||||||||||||||||
Net Increase in Net Assets Resulting | 477,262 | 251,224 | 21,770,533 | 11,456,758 | 1,488,745 | 795,862 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||
Class A | (4,707 | ) | — | (4,157,297 | ) | (3,012,121 | ) | (17,333 | ) | — | ||||||||||||||
Class C | (3,544 | ) | — | (1,034,967 | ) | (549,513 | ) | (8,762 | ) | — | ||||||||||||||
Class I | (156,448 | ) | (59,453 | ) | (22,080 | ) | (940,375 | ) | (493,196 | ) | (190,597 | ) | ||||||||||||
Advisor Class | (175 | ) | — | (31,634 | ) | — | (1,230 | ) | — | |||||||||||||||
Net realized gains | ||||||||||||||||||||||||
Class A | — | — | — | (486,579 | ) | — | — | |||||||||||||||||
Class C | — | — | — | (122,517 | ) | — | — | |||||||||||||||||
Class I | — | — | — | (2,113 | ) | — | — | |||||||||||||||||
Advisor Class | — | — | — | — | — | — | ||||||||||||||||||
Net Decrease from Dividends and | (164,874 | ) | (59,453 | ) | (5,245,978 | ) | (5,113,218 | ) | (520,521 | ) | (190,597 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||
Class A | 1,900,900 | — | 136,623,462 | 270,672,136 | 3,176,328 | — | ||||||||||||||||||
Class C | 1,639,489 | — | 51,734,431 | 78,065,409 | 1,829,461 | — | ||||||||||||||||||
Class I | 184,300 | 12,000,000 | 720,413 | 1,088,751 | 1,115,997 | 17,000,000 | ||||||||||||||||||
Advisor Class | 84,983 | — | 6,292,678 | — | 223,800 | — | ||||||||||||||||||
Dividends and distribution reinvestments | ||||||||||||||||||||||||
Class A | 2,814 | — | 2,959,912 | 2,349,682 | 13,825 | — | ||||||||||||||||||
Class C | 3,010 | — | 826,345 | 545,408 | 7,256 | — | ||||||||||||||||||
Class I | 156,448 | 59,453 | 19,805 | 942,488 | 487,666 | 190,597 | ||||||||||||||||||
Advisor Class | 150 | — | 29,725 | — | 1,010 | — | ||||||||||||||||||
Cost of shares repurchased | ||||||||||||||||||||||||
Class A | (7,310 | ) | — | (42,555,425 | ) | (35,115,509 | ) | (22,605 | ) | — | ||||||||||||||
Class C | (5,407 | ) | — | (3,493,470 | ) | (2,932,504 | ) | (10,381 | ) | — | ||||||||||||||
Class I | — | — | (260,155 | ) | (52,949,486 | ) | — | — | ||||||||||||||||
Advisor Class | — | — | (88,204 | ) | — | (5,262 | ) | — | ||||||||||||||||
Net Increase in Net Assets from | 3,959,377 | 12,059,453 | 152,809,517 | 262,666,375 | 6,817,095 | 17,190,597 | ||||||||||||||||||
NET INCREASE IN NET ASSETS | 4,271,765 | 12,251,224 | 169,334,072 | 269,009,915 | 7,785,319 | 17,795,862 | ||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||
Beginning of Year or Period | 12,251,224 | — | 325,540,370 | 56,530,455 | 17,795,862 | — | ||||||||||||||||||
End of Year or Period | $16,522,989 | $12,251,224 | $494,874,442 | $325,540,370 | $25,581,181 | $17,795,862 | ||||||||||||||||||
Undistributed Net Investment Income | $2,881 | $7,918 | $92,480 | $49,246 | $8,704 | $39,748 |
(1) | Operations commenced on December 19, 2011. |
(2) | Unaudited. |
See Notes to Financial Statements |
B-7
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
PL Floating Rate | PL High Income Fund (2) | PL Money Market Fund | ||||||||||||||||||||||
Six-Month Period Ended September 30, 2012 (3) | Period Ended March 31, 2012 | Six-Month Period Ended September 30, 2012 (3) | Period Ended March 31, 2012 | Six-Month Period Ended September 30, 2012 (3) | Year Ended March 31, 2012 | |||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||
Net investment income (loss) | $1,686,862 | $1,305,553 | $250,438 | $140,612 | $— | ($5 | ) | |||||||||||||||||
Net realized gain (loss) | 915,981 | (55,054 | ) | 129,881 | 111,589 | 2 | (149 | ) | ||||||||||||||||
Change in net unrealized appreciation (depreciation) | 790,708 | 444,446 | 159,170 | 271,182 | — | — | ||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting | 3,393,551 | 1,694,945 | 539,489 | 523,383 | 2 | (154 | ) | |||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||
Class A | (530,210 | ) | (76,686 | ) | (9,527 | ) | — | — | — | |||||||||||||||
Class B | — | — | — | — | — | — | ||||||||||||||||||
Class C | (220,258 | ) | (19,277 | ) | (5,690 | ) | — | — | — | |||||||||||||||
Class I | (921,641 | ) | (1,190,555 | ) | (260,312 | ) | (117,780 | ) | — | — | ||||||||||||||
Advisor Class | (5,243 | ) | — | (67 | ) | — | — | — | ||||||||||||||||
Net realized gains | ||||||||||||||||||||||||
Class A | — | — | — | — | — | — | ||||||||||||||||||
Class B | — | — | — | — | — | — | ||||||||||||||||||
Class C | — | — | — | — | — | — | ||||||||||||||||||
Class I | — | — | — | — | — | — | ||||||||||||||||||
Advisor Class | — | — | — | — | — | — | ||||||||||||||||||
Net Decrease from Dividends and Distributions to Shareholders | (1,677,352 | ) | (1,286,518 | ) | (275,596 | ) | (117,780 | ) | — | — | ||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||
Class A | 28,544,250 | 11,991,538 | 1,637,562 | — | 23,344,555 | 45,578,881 | ||||||||||||||||||
Class B | — | — | — | — | 456,930 | — | ||||||||||||||||||
Class C | 15,523,183 | 3,395,490 | 1,137,868 | — | 1,198,174 | — | ||||||||||||||||||
Class I | 1,774,533 | 40,343,574 | 176,129 | 7,000,000 | — | — | ||||||||||||||||||
Advisor Class | 1,418,150 | — | 5,000 | — | — | — | ||||||||||||||||||
Dividends and distribution reinvestments | ||||||||||||||||||||||||
Class A | 390,349 | 49,677 | 7,087 | — | — | — | ||||||||||||||||||
Class B | — | — | — | — | — | — | ||||||||||||||||||
Class C | 123,676 | 7,229 | 3,948 | — | — | — | ||||||||||||||||||
Class I | 876,013 | 1,173,730 | 260,312 | 117,780 | — | — | ||||||||||||||||||
Advisor Class | 2,982 | — | 67 | — | — | — | ||||||||||||||||||
Cost of shares repurchased | ||||||||||||||||||||||||
Class A | (3,102,499 | ) | (26,109 | ) | (7,965 | ) | — | (26,424,289 | ) | (51,953,637 | ) | |||||||||||||
Class B | — | — | — | — | (125,274 | ) | — | |||||||||||||||||
Class C | (213,766 | ) | (46,348 | ) | (5,306 | ) | — | (470,975 | ) | — | ||||||||||||||
Class I | (8,109,394 | ) | (20,000 | ) | — | — | — | — | ||||||||||||||||
Advisor Class | (5,152 | ) | — | — | — | — | — | |||||||||||||||||
Net Increase (Decrease) in Net Assets from | 37,222,325 | 56,868,781 | 3,214,702 | 7,117,780 | (2,020,879 | ) | (6,374,756 | ) | ||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | 38,938,524 | 57,277,208 | 3,478,595 | 7,523,383 | (2,020,877 | ) | (6,374,910 | ) | ||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||
Beginning of Year or Period | 57,277,208 | — | 7,523,383 | — | 32,067,611 | 38,442,521 | ||||||||||||||||||
End of Year or Period | $96,215,732 | $57,277,208 | $11,001,978 | $7,523,383 | $30,046,734 | $32,067,611 | ||||||||||||||||||
Undistributed/Accumulated Net Investment Income (Loss) | $32,226 | $22,716 | $4,055 | $29,213 | ($3,657 | ) | ($3,657 | ) |
(1) | Operations commenced on June 30, 2011. |
(2) | Operations commenced on December 19, 2011. |
(3) | Unaudited. |
See Notes to Financial Statements |
B-8
PACIFIC LIFE FUNDS
Selected per share, ratios and supplemental data for each year or period were as follows:
For the Year or Period Ended | Net Asset Value, Beginning of Year or Period | Net Investment Income (Loss) (1) | Net Realized and Unrealized Gain (Loss) | Total from Investment Operations | Distributions from Net Investment Income | Distributions from Capital Gains | Total Distributions | Net Asset Value, End of Year or Period | Total Returns (2) | Net Assets, End of Year or Period (in thousands) | Ratios of Expenses Before Expense Reductions to Average Net Assets (3) | Ratios of Expenses After Expense Reductions to Average Net Assets (3), (4) | Ratios of Net Investment Income (Loss) to Average Net Assets (3) | Portfolio Turnover Rates | ||||||||||||||||||||||||||||||||||||
PL Portfolio Optimization Conservative Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Class A: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $11.07 | ($0.03 | ) | $0.43 | $0.40 | $— | $— | $— | $11.47 | 3.61 | % | $216,446 | 0.71% | 0.60% | (0.60%) | 12.76 | % | |||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.87 | 0.22 | 0.29 | 0.51 | (0.28 | ) | (0.03 | ) | (0.31 | ) | 11.07 | 4.80 | % | 182,912 | 0.73% | 0.60% | 1.99% | 10.20 | % | |||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.41 | 0.15 | 0.63 | 0.78 | (0.32 | ) | — | (0.32 | ) | 10.87 | 7.60 | % | 130,249 | 0.78% | 0.53% | 1.43% | 18.42 | % | ||||||||||||||||||||||||||||||||
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 | 0.95% | 0.20% | 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 | 0.95% | 0.16% | 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 | 0.94% | 0.00% | 3.20% | 43.30 | % | |||||||||||||||||||||||||||||||
Class B: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $10.96 | ($0.07 | ) | $0.43 | $0.36 | $— | $— | $— | $11.32 | 3.29 | % | $38,257 | 1.46% | 1.35% | (1.35%) | 12.76 | % | |||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.78 | 0.13 | 0.29 | 0.42 | (0.21 | ) | (0.03 | ) | (0.24 | ) | 10.96 | 4.02 | % | 33,122 | 1.48% | 1.35% | 1.24% | 10.20 | % | |||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.34 | 0.07 | 0.63 | 0.70 | (0.26 | ) | — | (0.26 | ) | 10.78 | 6.80 | % | 22,282 | 1.53% | 1.27% | 0.68% | 18.42 | % | ||||||||||||||||||||||||||||||||
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 | 1.70% | 0.95% | 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 | 1.70% | 0.91% | 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 | 1.69% | 0.75% | 2.45% | 43.30 | % | |||||||||||||||||||||||||||||||
Class C: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $10.96 | ($0.07 | ) | $0.43 | $0.36 | $— | $— | $— | $11.32 | 3.29 | % | $190,643 | 1.46% | 1.35% | (1.35%) | 12.76 | % | |||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.77 | 0.13 | 0.30 | 0.43 | (0.21 | ) | (0.03 | ) | (0.24 | ) | 10.96 | 4.08 | % | 158,748 | 1.48% | 1.35% | 1.24% | 10.20 | % | |||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.33 | 0.07 | 0.63 | 0.70 | (0.26 | ) | — | (0.26 | ) | 10.77 | 6.81 | % | 117,458 | 1.53% | 1.27% | 0.68% | 18.42 | % | ||||||||||||||||||||||||||||||||
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 | 1.70% | 0.95% | 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 | 1.70% | 0.91% | 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 | 1.69% | 0.75% | 2.45% | 43.30 | % | |||||||||||||||||||||||||||||||
Class R: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $11.03 | ($0.05 | ) | $0.44 | $0.39 | $— | $— | $— | $11.42 | 3.54 | % | $11,274 | 0.96% | 0.85% | (0.85%) | 12.76 | % | |||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.83 | 0.19 | 0.29 | 0.48 | (0.25 | ) | (0.03 | ) | (0.28 | ) | 11.03 | 4.58 | % | 10,522 | 0.98% | 0.85% | 1.74% | 10.20 | % | |||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.38 | 0.13 | 0.61 | 0.74 | (0.29 | ) | — | (0.29 | ) | 10.83 | 7.25 | % | 8,881 | 1.03% | 0.75% | 1.20% | 18.42 | % | ||||||||||||||||||||||||||||||||
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 | 1.20% | 0.45% | 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 | 1.20% | 0.41% | 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 | 1.19% | 0.25% | 2.95% | 43.30 | % | |||||||||||||||||||||||||||||||
PL Portfolio Optimization Moderate-Conservative Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Class A: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $11.56 | ($0.03 | ) | $0.34 | $0.31 | $— | $— | $— | $11.87 | 2.68 | % | $216,686 | 0.71% | 0.60% | (0.60%) | 11.62 | % | |||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.25 | 0.18 | 0.35 | 0.53 | (0.22 | ) | — | (0.22 | ) | 11.56 | 4.87 | % | 188,660 | 0.73% | 0.60% | 1.62% | 9.52 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.54 | 0.12 | 0.87 | 0.99 | (0.28 | ) | — | (0.28 | ) | 11.25 | 9.53 | % | 132,919 | 0.78% | 0.52% | 1.16% | 9.61 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 8.36 | 0.26 | 2.19 | 2.45 | (0.27 | ) | — | (0.27 | ) | 10.54 | 29.60 | % | 78,160 | 0.95% | 0.20% | 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 | 0.92% | 0.14% | 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 | 0.82% | 0.00% | 2.50% | 10.38 | % | ||||||||||||||||||||||||||||||
Class B: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $11.46 | ($0.08 | ) | $0.35 | $0.27 | $— | $— | $— | $11.73 | 2.36 | % | $45,487 | 1.46% | 1.35% | (1.35%) | 11.62 | % | |||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.17 | 0.10 | 0.35 | 0.45 | (0.16 | ) | — | (0.16 | ) | 11.46 | 4.07 | % | 40,812 | 1.48% | 1.35% | 0.87% | 9.52 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.47 | 0.04 | 0.87 | 0.91 | (0.21 | ) | — | (0.21 | ) | 11.17 | 8.78 | % | 28,411 | 1.53% | 1.27% | 0.41% | 9.61 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 8.30 | 0.18 | 2.20 | 2.38 | (0.21 | ) | — | (0.21 | ) | 10.47 | 28.87 | % | 19,202 | 1.70% | 0.95% | 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 | 1.67% | 0.89% | 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 | 1.57% | 0.75% | 1.75% | 10.38 | % | ||||||||||||||||||||||||||||||
Class C: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $11.47 | ($0.08 | ) | $0.34 | $0.26 | $— | $— | $— | $11.73 | 2.27 | % | $164,516 | 1.46% | 1.35% | (1.35%) | 11.62 | % | |||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.16 | 0.10 | 0.36 | 0.46 | (0.15 | ) | — | (0.15 | ) | 11.47 | 4.20 | % | 144,900 | 1.48% | 1.35% | 0.87% | 9.52 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.47 | 0.04 | 0.86 | 0.90 | (0.21 | ) | — | (0.21 | ) | 11.16 | 8.71 | % | 107,411 | 1.53% | 1.27% | 0.41% | 9.61 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 8.30 | 0.18 | 2.20 | 2.38 | (0.21 | ) | — | (0.21 | ) | 10.47 | 28.87 | % | 65,086 | 1.70% | 0.95% | 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 | 1.67% | 0.89% | 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 | 1.57% | 0.75% | 1.75% | 10.38 | % | ||||||||||||||||||||||||||||||
Class R: | ||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $11.52 | ($0.05 | ) | $0.34 | $0.29 | $— | $— | $— | $11.81 | 2.52 | % | $5,955 | 0.96% | 0.85% | (0.85%) | 11.62 | % | |||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.22 | 0.15 | �� | 0.35 | 0.50 | (0.20 | ) | — | (0.20 | ) | 11.52 | 4.53 | % | 6,301 | 0.98% | 0.85% | 1.37% | 9.52 | % | |||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.51 | 0.10 | 0.86 | 0.96 | (0.25 | ) | — | (0.25 | ) | 11.22 | 9.32 | % | 15,236 | 1.03% | 0.76% | 0.91% | 9.61 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 8.34 | 0.23 | 2.20 | 2.43 | (0.26 | ) | — | (0.26 | ) | 10.51 | 29.32 | % | 10,478 | 1.20% | 0.45% | 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 | 1.17% | 0.39% | 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 | 1.07% | 0.25% | 2.25% | 10.38 | % |
See Notes to Financial Statements | See explanation of references on B-12 |
B-9
PACIFIC LIFE FUNDS
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period were as follows:
For the Year or Period Ended | Net Asset Value, Beginning of Year or Period | Net Investment Income (Loss) (1) | Net Realized and Unrealized Gain (Loss) | Total from Investment Operations | Distributions from Net Investment Income | Distributions from Capital Gains | Total Distributions | Net Asset Value, End of Year or Period | Total Returns (2) | Net Assets, End of Year or Period (in thousands) | Ratios of Expenses Before Expense Reductions to Average Net Assets (3) | Ratios of Expenses After Expense Reductions to Average Net Assets (3), (4) | Ratios of Net Investment Income (Loss) to Average Net Assets (3) | Portfolio Turnover Rates | ||||||||||||||||||||||||||||||||||||
PL Portfolio Optimization Moderate Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Class A: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $12.26 | ($0.04 | ) | $0.28 | $0.24 | $— | $— | $— | $12.50 | 1.96 | % | $574,376 | 0.70% | 0.60% | (0.60%) | 12.34 | % | |||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.88 | 0.14 | 0.42 | 0.56 | (0.18 | ) | — | (0.18 | ) | 12.26 | 4.82 | % | 517,945 | 0.72% | 0.60% | 1.18% | 6.77 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.81 | 0.10 | 1.19 | 1.29 | (0.22 | ) | — | (0.22 | ) | 11.88 | 12.10 | % | 384,999 | 0.77% | 0.52% | 0.91% | 9.36 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 7.96 | 0.20 | 2.87 | 3.07 | (0.22 | ) | — | �� | (0.22 | ) | 10.81 | 38.85 | % | 247,213 | 0.92% | 0.20% | 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 | 0.89% | 0.14% | 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 | 0.78% | 0.00% | 1.90% | 5.01 | % | ||||||||||||||||||||||||||||||
Class B: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $12.18 | ($0.08 | ) | $0.27 | $0.19 | $— | $— | $— | $12.37 | 1.56 | % | $125,512 | 1.45% | 1.35% | (1.35%) | 12.34 | % | |||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.80 | 0.05 | 0.43 | 0.48 | (0.10 | ) | — | (0.10 | ) | 12.18 | 4.13 | % | 115,513 | 1.47% | 1.35% | 0.43% | 6.77 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.74 | 0.02 | 1.18 | 1.20 | (0.14 | ) | — | (0.14 | ) | 11.80 | 11.33 | % | 92,064 | 1.52% | 1.26% | 0.17% | 9.36 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 7.90 | 0.12 | 2.87 | 2.99 | (0.15 | ) | — | (0.15 | ) | 10.74 | 38.14 | % | 65,336 | 1.67% | 0.95% | 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 | 1.64% | 0.89% | 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 | 1.53% | 0.75% | 1.15% | 5.01 | % | |||||||||||||||||||||||||||||
Class C: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $12.17 | ($0.08 | ) | $0.27 | $0.19 | $— | $— | $— | $12.36 | 1.56 | % | $396,623 | 1.45% | 1.35% | (1.35%) | 12.34 | % | |||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.78 | 0.05 | 0.43 | 0.48 | (0.09 | ) | — | (0.09 | ) | 12.17 | 4.18 | % | 366,753 | 1.47% | 1.35% | 0.43% | 6.77 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.73 | 0.02 | 1.17 | 1.19 | (0.14 | ) | — | (0.14 | ) | 11.78 | 11.26 | % | 308,449 | 1.52% | 1.26% | 0.17% | 9.36 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 7.88 | 0.12 | 2.88 | 3.00 | (0.15 | ) | — | (0.15 | ) | 10.73 | 38.36 | % | 210,889 | 1.67% | 0.95% | 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 | 1.64% | 0.89% | 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 | 1.53% | 0.75% | 1.15% | 5.01 | % | |||||||||||||||||||||||||||||
Class R: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $12.24 | ($0.05 | ) | $0.27 | $0.22 | $— | $— | $— | $12.46 | 1.80 | % | $24,879 | 0.95% | 0.85% | (0.85%) | 12.34 | % | |||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.84 | 0.11 | 0.43 | 0.54 | (0.14 | ) | — | (0.14 | ) | 12.24 | 4.67 | % | 23,321 | 0.97% | 0.85% | 0.93% | 6.77 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.77 | 0.07 | 1.18 | 1.25 | (0.18 | ) | — | (0.18 | ) | 11.84 | 11.82 | % | 23,658 | 1.02% | 0.75% | 0.68% | 9.36 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 7.93 | 0.17 | 2.87 | 3.04 | (0.20 | ) | — | (0.20 | ) | 10.77 | 38.61 | % | 24,232 | 1.17% | 0.45% | 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 | 1.14% | 0.39% | 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 | 1.03% | 0.25% | 1.65% | 5.01 | % | ||||||||||||||||||||||||||||||
PL Portfolio Optimization Moderate-Aggressive Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Class A: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $12.41 | ($0.04 | ) | $0.14 | $0.10 | $— | $— | $— | $12.51 | 0.81 | % | $385,729 | 0.71% | 0.60% | (0.60%) | 12.03 | % | |||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 12.05 | 0.10 | 0.38 | 0.48 | (0.12 | ) | — | (0.12 | ) | 12.41 | 4.13 | % | 365,426 | 0.72% | 0.60% | 0.82% | 7.52 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.68 | 0.07 | 1.44 | 1.51 | (0.14 | ) | — | (0.14 | ) | 12.05 | 14.36 | % | 301,232 | 0.77% | 0.51% | 0.62% | 13.33 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 7.31 | 0.13 | 3.38 | 3.51 | (0.14 | ) | — | (0.14 | ) | 10.68 | 48.26 | % | 225,236 | 0.92% | 0.20% | 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 | 0.89% | 0.14% | 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 | 0.78% | 0.00% | 1.30% | 5.05 | % | |||||||||||||||||||||||||||||
Class B: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $12.30 | ($0.08 | ) | $0.13 | $0.05 | $— | $— | $— | $12.35 | 0.41 | % | $98,092 | 1.46% | 1.35% | (1.35%) | 12.03 | % | |||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.93 | 0.01 | 0.40 | 0.41 | (0.04 | ) | — | (0.04 | ) | 12.30 | 3.50 | % | 95,937 | 1.47% | 1.35% | 0.07% | 7.52 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.57 | (0.01 | ) | 1.43 | 1.42 | (0.06 | ) | — | (0.06 | ) | 11.93 | 13.59 | % | 83,812 | 1.52% | 1.26% | (0.13%) | 13.33 | % | |||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 7.21 | 0.05 | 3.38 | 3.43 | (0.07 | ) | — | (0.07 | ) | 10.57 | 47.84 | % | 68,751 | 1.67% | 0.95% | 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 | 1.64% | 0.89% | 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 | 1.53% | 0.75% | 0.55% | 5.05 | % | |||||||||||||||||||||||||||||
Class C: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $12.27 | ($0.08 | ) | $0.14 | $0.06 | $— | $— | $— | $12.33 | 0.49 | % | $267,417 | 1.46% | 1.35% | (1.35%) | 12.03 | % | |||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.91 | 0.01 | 0.39 | 0.40 | (0.04 | ) | — | (0.04 | ) | 12.27 | 3.39 | % | 257,114 | 1.47% | 1.35% | 0.07% | 7.52 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.55 | (0.01 | ) | 1.43 | 1.42 | (0.06 | ) | — | (0.06 | ) | 11.91 | 13.64 | % | 230,964 | 1.52% | 1.26% | (0.13%) | 13.33 | % | |||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 7.18 | 0.05 | 3.39 | 3.44 | (0.07 | ) | — | (0.07 | ) | 10.55 | 48.18 | % | 189,917 | 1.67% | 0.95% | 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 | 1.64% | 0.89% | 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 | 1.53% | 0.75% | 0.55% | 5.05 | % | |||||||||||||||||||||||||||||
Class R: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $12.40 | ($0.05 | ) | $0.13 | $0.08 | $— | $— | $— | $12.48 | 0.65 | % | $14,917 | 0.96% | 0.85% | (0.85%) | 12.03 | % | |||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 12.03 | 0.07 | 0.40 | 0.47 | (0.10 | ) | — | (0.10 | ) | 12.40 | 3.97 | % | 14,710 | 0.97% | 0.85% | 0.57% | 7.52 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.67 | 0.04 | 1.44 | 1.48 | (0.12 | ) | — | (0.12 | ) | 12.03 | 14.00 | % | 17,265 | 1.02% | 0.76% | 0.37% | 13.33 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 7.30 | 0.10 | 3.39 | 3.49 | (0.12 | ) | — | (0.12 | ) | 10.67 | 48.07 | % | 12,211 | 1.17% | 0.45% | 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 | 1.14% | 0.39% | 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 | 1.03% | 0.25% | 1.05% | 5.05 | % |
See Notes to Financial Statements | See explanation of references on B-12 |
B-10
PACIFIC LIFE FUNDS
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period were as follows:
For the Year or Period Ended | Net Asset Value, Beginning of Year or Period | Net Investment Income (Loss) (1) | Net Realized and Unrealized Gain (Loss) | Total from Investment Operations | Distributions from Net Investment Income | Distributions from Capital Gains | Total Distributions | Net Asset Value, End of Year or Period | Total Returns (2) | Net Assets, End of Year or Period (in thousands) | Ratios of Expenses Before Expense Reductions to Average Net Assets (3) | Ratios of Expenses After Expense Reductions to Average Net Assets (3), (4) | Ratios of Net Investment Income (Loss) to Average Net Assets (3) | Portfolio Turnover Rates | ||||||||||||||||||||||||||||||||||||
PL Portfolio Optimization Aggressive Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Class A: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $12.56 | ($0.04 | ) | $0.01 | ($0.03 | ) | $— | $— | $— | $12.53 | (0.24 | %) | $124,695 | 0.73% | 0.60% | (0.60%) | 10.70 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 12.29 | 0.06 | 0.27 | 0.33 | (0.06 | ) | — | (0.06 | ) | 12.56 | 2.73 | % | 122,397 | 0.74% | 0.60% | 0.52% | 12.51 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.66 | 0.05 | 1.65 | 1.70 | (0.07 | ) | — | (0.07 | ) | 12.29 | 16.11 | % | 114,246 | 0.80% | 0.51% | 0.44% | 26.22 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 6.92 | 0.09 | 3.75 | 3.84 | (0.10 | ) | — | (0.10 | ) | 10.66 | 55.84 | % | 98,669 | 0.94% | 0.20% | 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 | 0.92% | 0.14% | 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 | 0.80% | 0.00% | 0.62% | 9.66 | % | |||||||||||||||||||||||||||||
Class B: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $12.28 | ($0.08 | ) | $— | ($0.08 | ) | $— | $— | $— | $12.20 | (0.65 | %) | $31,526 | 1.48% | 1.35% | (1.35%) | 10.70 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 12.03 | (0.03 | ) | 0.28 | 0.25 | — | — | — | 12.28 | 2.08 | % | 31,969 | 1.49% | 1.35% | (0.23%) | 12.51 | % | |||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.46 | (0.03 | ) | 1.65 | 1.62 | (0.05 | ) | — | (0.05 | ) | 12.03 | 15.62 | % | 30,693 | 1.55% | 1.25% | (0.31%) | 26.22 | % | |||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 6.72 | 0.02 | 3.75 | 3.77 | (0.03 | ) | — | (0.03 | ) | 10.46 | 56.15 | % | 28,776 | 1.69% | 0.95% | 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 | 1.67% | 0.89% | 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 | 1.55% | 0.75% | (0.13%) | 9.66 | % | ||||||||||||||||||||||||||||
Class C: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $12.28 | ($0.08 | ) | $— | ($0.08 | ) | $— | $— | $— | $12.20 | (0.65 | %) | $74,937 | 1.48% | 1.35% | (1.35%) | 10.70 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 12.03 | (0.03 | ) | 0.28 | 0.25 | — | — | — | 12.28 | 2.08 | % | 76,613 | 1.49% | 1.35% | (0.23%) | 12.51 | % | |||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.46 | (0.03 | ) | 1.65 | 1.62 | (0.05 | ) | — | (0.05 | ) | 12.03 | 15.61 | % | 75,607 | 1.55% | 1.25% | (0.31%) | 26.22 | % | |||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 6.71 | 0.02 | 3.75 | 3.77 | (0.02 | ) | — | (0.02 | ) | 10.46 | 56.11 | % | 68,230 | 1.69% | 0.95% | 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 | 1.67% | 0.89% | 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 | 1.55% | 0.75% | (0.13%) | 9.66 | % | ||||||||||||||||||||||||||||
Class R: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $12.48 | ($0.05 | ) | $0.01 | ($0.04 | ) | $— | $— | $— | $12.44 | (0.32 | %) | $6,175 | 0.98% | 0.85% | (0.85%) | 10.70 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 12.22 | 0.03 | 0.26 | 0.29 | (0.03 | ) | — | (0.03 | ) | 12.48 | 2.43 | % | 6,662 | 0.99% | 0.85% | 0.27% | 12.51 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.61 | 0.02 | 1.65 | 1.67 | (0.06 | ) | — | (0.06 | ) | 12.22 | 16.02 | % | 5,553 | 1.05% | 0.76% | 0.19% | 26.22 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 6.88 | 0.06 | 3.76 | 3.82 | (0.09 | ) | — | (0.09 | ) | 10.61 | 55.70 | % | 4,448 | 1.19% | 0.45% | 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 | 1.17% | 0.39% | 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 | 1.05% | 0.25% | 0.37% | 9.66 | % | |||||||||||||||||||||||||||||
PL Short Duration Income Fund (6) |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Class A: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
6/29/2012 - 9/30/2012 (5) | $10.20 | $0.06 | $0.20 | $0.26 | ($0.06 | ) | $— | ($0.06 | ) | $10.40 | 2.56 | % | $1,907 | 1.27% | 0.85% | 2.37% | 88.58 | % | ||||||||||||||||||||||||||||||||
Class C: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
6/29/2012 - 9/30/2012 (5) | $10.20 | $0.04 | $0.20 | $0.24 | ($0.05 | ) | $— | ($0.05 | ) | $10.39 | 2.38 | % | $1,645 | 2.02% | 1.60% | 1.61% | 88.58 | % | ||||||||||||||||||||||||||||||||
Class I: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $10.14 | $0.13 | $0.24 | $0.37 | ($0.13 | ) | $— | ($0.13 | ) | $10.38 | 3.65 | % | $12,886 | 1.34% | 0.60% | 2.47% | 88.58 | % | ||||||||||||||||||||||||||||||||
12/19/2011 - 3/31/2012 | 10.00 | 0.06 | 0.15 | 0.21 | (0.07 | ) | — | (0.07 | ) | 10.14 | 2.10 | % | 12,251 | �� | 2.04% | 0.60% | 2.06% | 73.40 | % | |||||||||||||||||||||||||||||||
Advisor Class: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
6/29/2012 - 9/30/2012 (5) | $10.20 | $0.06 | $0.20 | $0.26 | ($0.06 | ) | $— | ($0.06 | ) | $10.40 | 2.53 | % | $85 | 1.27% | 0.85% | 2.60% | 88.58 | % | ||||||||||||||||||||||||||||||||
PL Income Fund (7) |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Class A: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $10.61 | $0.15 | $0.42 | $0.57 | ($0.14 | ) | $— | ($0.14 | ) | $11.04 | 5.44 | % | $356,849 | 1.18% | 0.90% | 2.74% | 92.60 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.16 | 0.30 | 0.48 | 0.78 | (0.30 | ) | (0.03 | ) | (0.33 | ) | 10.61 | 7.79 | % | 247,522 | 1.35% | 0.90% | 2.94% | 199.30 | % | |||||||||||||||||||||||||||||||
12/31/2010 - 3/31/2011 | 10.00 | 0.09 | 0.16 | 0.25 | (0.09 | ) | — | (0.09 | ) | 10.16 | 2.46 | % | 5,300 | 1.77% | 0.90% | 3.62% | 142.25 | % | ||||||||||||||||||||||||||||||||
Class C: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $10.62 | $0.11 | $0.43 | $0.54 | ($0.11 | ) | $— | ($0.11 | ) | $11.05 | 5.07 | % | $129,890 | 1.93% | 1.65% | 1.99% | 92.60 | % | ||||||||||||||||||||||||||||||||
6/30/2011 - 3/31/2012 | 10.32 | 0.17 | 0.33 | 0.50 | (0.17 | ) | (0.03 | ) | (0.20 | ) | 10.62 | 4.89 | % | 76,726 | 2.07% | 1.65% | 2.17% | 199.30 | % | |||||||||||||||||||||||||||||||
Class I: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $10.62 | $0.16 | $0.43 | $0.59 | ($0.16 | ) | $— | ($0.16 | ) | $11.05 | 5.56 | % | $1,831 | 0.78% | 0.65% | 2.99% | 92.60 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.16 | 0.36 | 0.44 | 0.80 | (0.31 | ) | (0.03 | ) | (0.34 | ) | 10.62 | 7.95 | % | 1,292 | 0.95% | 0.65% | 3.42% | 199.30 | % | |||||||||||||||||||||||||||||||
12/31/2010 - 3/31/2011 | 10.00 | 0.10 | 0.15 | 0.25 | (0.09 | ) | — | (0.09 | ) | 10.16 | 2.48 | % | 51,231 | 1.37% | 0.65% | 3.87% | 142.25 | % | ||||||||||||||||||||||||||||||||
Advisor Class: |
| |||||||||||||||||||||||||||||||||||||||||||||||||
6/29/2012 - 9/30/2012 (5) | $10.79 | $0.07 | $0.27 | $0.34 | ($0.07 | ) | $— | ($0.07 | ) | $11.06 | 3.19 | % | $6,304 | 1.17% | 0.90% | 2.68% | 92.60 | % |
See Notes to Financial Statements | See explanation of references on B-12 |
B-11
PACIFIC LIFE FUNDS
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period were as follows:
For the Year or Period Ended | Net Asset Value, Beginning of Year or Period | Net Investment Income (Loss) (1) | Net Realized and Unrealized Gain (Loss) | Total from Investment Operations | Distributions from Net Investment Income | Distributions from Capital Gains | Total Distributions | Net Asset Value, End of Year or Period | Total Returns (2) | Net Assets, End of Year or Period (in thousands) | Ratios of Expenses Before Expense Reductions to Average Net Assets (3) | Ratios of Expenses After Expense Reductions to Average Net Assets (3), (4) | Ratios of Net Investment Income (Loss) to Average Net Assets (3) | Portfolio Turnover Rates | ||||||||||||||||||||||||||||||||||||||
PL Strategic Income Fund (6) |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/29/2012 - 9/30/2012 (5) | $10.53 | $0.13 | $0.43 | $0.56 | ($0.12 | ) | $— | ($0.12 | ) | $10.97 | 5.31 | % | $3,194 | 1.47% | 1.05% | 4.50% | 181.08 | % | ||||||||||||||||||||||||||||||||||
Class C: |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/29/2012 - 9/30/2012 (5) | $10.53 | $0.11 | $0.42 | $0.53 | ($0.10 | ) | $— | ($0.10 | ) | $10.96 | 5.09 | % | $1,851 | 2.22% | 1.80% | 3.77% | 181.08 | % | ||||||||||||||||||||||||||||||||||
Class I: |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $10.40 | $0.27 | $0.52 | $0.79 | ($0.28 | ) | $— | ($0.28 | ) | $10.91 | 7.70 | % | $20,314 | 1.37% | 0.80% | 5.01% | 181.08 | % | ||||||||||||||||||||||||||||||||||
12/19/2011 - 3/31/2012 | 10.00 | 0.14 | 0.38 | 0.52 | (0.12 | ) | — | (0.12 | ) | 10.40 | 5.22 | % | 17,796 | 1.78% | 0.80% | 4.84% | 155.66 | % | ||||||||||||||||||||||||||||||||||
Advisor Class: |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/29/2012 - 9/30/2012 (5) | $10.53 | $0.12 | $0.43 | $0.55 | ($0.11 | ) | $— | ($0.11 | ) | $10.97 | 5.28 | % | $222 | 1.47% | 1.05% | 4.45% | 181.08 | % | ||||||||||||||||||||||||||||||||||
PL Floating Rate Income Fund (7) |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $10.07 | $0.23 | $0.21 | $0.44 | ($0.22 | ) | $— | ($0.22 | ) | $10.29 | 4.38 | % | $38,419 | 1.46% | 1.05% | 4.45% | 99.02 | % | ||||||||||||||||||||||||||||||||||
12/30/2011 - 3/31/2012 | 9.81 | 0.13 | 0.24 | 0.37 | (0.11 | ) | — | (0.11 | ) | 10.07 | 3.79 | % | 12,071 | 1.55% | 1.05% | 5.33% | 139.00 | % | ||||||||||||||||||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $10.07 | $0.19 | $0.21 | $0.40 | ($0.18 | ) | $— | ($0.18 | ) | $10.29 | 4.05 | % | $19,045 | 2.21% | 1.80% | 3.71% | 99.02 | % | ||||||||||||||||||||||||||||||||||
12/30/2011 - 3/31/2012 | 9.81 | 0.11 | 0.25 | 0.36 | (0.10 | ) | — | (0.10 | ) | 10.07 | 3.68 | % | 3,372 | 2.30% | 1.80% | 4.61% | 139.00 | % | ||||||||||||||||||||||||||||||||||
Class I: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $10.08 | $0.24 | $0.22 | $0.46 | ($0.23 | ) | $— | ($0.23 | ) | $10.31 | 4.58 | % | $37,333 | 1.06% | 0.80% | 4.65% | 99.02 | % | ||||||||||||||||||||||||||||||||||
6/30/2011 - 3/31/2012 | 10.00 | 0.34 | 0.06 | 0.40 | (0.32 | ) | — | (0.32 | ) | 10.08 | 4.11 | % | 41,834 | 1.24% | 0.80% | 4.60% | 139.00 | % | ||||||||||||||||||||||||||||||||||
Advisor Class: |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/29/2012 - 9/30/2012 (5) | $10.12 | $0.14 | $0.17 | $0.31 | ($0.11 | ) | $— | ($0.11 | ) | $10.32 | 3.09 | % | $1,418 | 1.39% | 1.05% | 5.21% | 99.02 | % | ||||||||||||||||||||||||||||||||||
PL High Income Fund (6) |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/29/2012 - 9/30/2012 (5) | $10.57 | $0.15 | $0.43 | $0.58 | ($0.15 | ) | $— | ($0.15 | ) | $11.00 | 5.49 | % | $1,643 | 1.73% | 1.05% | 5.61% | 83.64 | % | ||||||||||||||||||||||||||||||||||
Class C: |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/29/2012 - 9/30/2012 (5) | $10.57 | $0.13 | $0.43 | $0.56 | ($0.14 | ) | $— | ($0.14 | ) | $10.99 | 5.32 | % | $1,134 | 2.48% | 1.80% | 4.76% | 83.64 | % | ||||||||||||||||||||||||||||||||||
Class I: |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $10.58 | $0.33 | $0.38 | $0.71 | ($0.36 | ) | $— | ($0.36 | ) | $10.93 | 6.73 | % | $8,219 | 2.04% | 0.80% | 6.19% | 83.64 | % | ||||||||||||||||||||||||||||||||||
12/19/2011 - 3/31/2012 | 10.00 | 0.20 | 0.55 | 0.75 | (0.17 | ) | — | (0.17 | ) | 10.58 | 7.50 | % | 7,523 | 2.82% | 0.80% | 6.73% | 92.87 | % | ||||||||||||||||||||||||||||||||||
Advisor Class: |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/29/2012 - 9/30/2012 (5) | $10.57 | $0.16 | $0.42 | $0.58 | ($0.14 | ) | $— | ($0.14 | ) | $11.01 | 5.52 | % | $5 | 1.73% | 1.05% | 5.64% | 83.64 | % | ||||||||||||||||||||||||||||||||||
PL Money Market Fund (8) |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
Class A: |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (5) | $1.00 | $— | $— | $— | $— | $— | $— | $1.00 | 0.00 | % | $28,988 | 1.10% | 0.12% | 0.00% | N/A | |||||||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 1.00 | (0.00 | )(9) | (0.00 | )(9) | 0.00 | — | — | — | 1.00 | 0.00 | % | 32,068 | 1.01% | 0.11% | (0.00 | %)(9) | N/A | ||||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 1.00 | (0.00 | )(9) | 0.00 | (9) | 0.00 | — | — | — | 1.00 | 0.00 | % | 38,443 | 1.00% | 0.24% | (0.00 | %)(9) | N/A | ||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 1.00 | (0.00 | )(9) | 0.00 | (9) | 0.00 | (0.00 | )(9) | — | (0.00 | )(9) | 1.00 | 0.03 | % | 34,669 | 1.09% | 0.36% | (0.00 | %)(9) | N/A | ||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 | 1.00 | 0.01 | 0.00 | (9) | 0.01 | (0.01 | ) | — | (0.01 | ) | 1.00 | 1.27 | % | 55,424 | 1.18% | 0.78% | 1.22% | N/A | ||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 | 1.00 | 0.04 | 0.00 | (9) | 0.04 | (0.04 | ) | — | (0.04 | ) | 1.00 | 3.90 | % | 42,636 | 1.28% | 0.95% | 3.68% | N/A | ||||||||||||||||||||||||||||||||||
Class B: |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/29/2012 - 9/30/2012 (5) | $1.00 | $— | $— | $— | $— | $— | $— | $1.00 | 0.00 | % | $332 | 1.84% | 0.12% | 0.00% | N/A | |||||||||||||||||||||||||||||||||||||
Class C: |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/29/2012 - 9/30/2012 (5) | $1.00 | $— | $— | $— | $— | $— | $— | $1.00 | 0.00 | % | $727 | 1.84% | 0.12% | 0.00% | 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 are annualized for periods of less than one full year. |
(4) | The ratios of expenses after expense reductions to average net assets are after any advisory fee waivers, adviser expense reimbursements, administration fee waivers, and service fee waivers, as discussed in Note 6B 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. |
(5) | Unaudited. |
(6) | Class A, Class C and Advisor Class shares of the PL Short Duration Income, PL Strategic Income and PL High Income Funds commenced operations on June 29, 2012. |
(7) | Advisor Class shares of the PL Income and PL Floating Rate Income Funds commenced operations on June 29, 2012. |
(8) | Class B and Class C shares of the PL Money Market Fund commenced operations on June 29, 2012. |
(9) | Amount represents less than $0.005 per share or less than 0.005%. |
See Notes to Financial Statements |
B-12
PACIFIC LIFE FUNDS
(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. Pacific Life Fund Advisors LLC (“PLFA” or “Adviser”) serves as investment adviser to the Trust. As of September 30, 2012, the Trust was comprised of twenty-nine separate funds, eleven 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 the PL Short Duration Income Fund, PL Income Fund, PL Strategic Income Fund, PL Floating Rate Income Fund, PL High Income Fund 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 applicable sales charges and 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 1.00% on redemptions of such Class A shares within one year of purchase.
The PL Short Duration Income Fund, PL Income Fund, PL Strategic Income Fund, PL Floating Rate Income Fund and PL High Income Fund offer Class A, Class C, Class I and Advisor Class shares. Each class is distinguished by its level of distribution and/or service fees and in general: (i) Class A shares of the PL Short Duration Income and PL Floating Rate Income Funds are subject to a maximum 3.00% front-end sales charge, and Class A shares of the PL Income, PL Strategic Income and PL High Income Funds are subject to a maximum 4.25% front-end sales charge; (ii) Class C shares are subject to a maximum 1.00% CDSC; (iii) Class I shares and Advisor Class shares are sold at NAV without an initial sales charge. The sales charge for Class A shares is reduced for purchases of $100,000 or more and may be waived in certain circumstances. There is no sales charge for Class A shares for purchases of $500,000 or more, although there is a CDSC of 1.00% of such Class A shares within one year of purchase.
The PL Money Market Fund offers Class A, Class B and Class C shares which are sold at NAV without an initial sales charge. Class B shares are subject to a maximum 5.00% CDSC. Class C shares are subject to a maximum 1.00% CDSC.
The Trust’s distributor receives all net commissions (front-end sales charges and CDSC) from the sales of all applicable share classes (see Note 5).
The Portfolio Optimization Funds invest their assets in Class P shares of other funds of the Trust (collectively, the “PL Underlying Funds”).
The semi-annual report for the PL Underlying Funds is not included in this report; there is a separate semi-annual report for the PL Underlying Funds, which is available without charge. For information on how to obtain the annual report for the PL Underlying Funds, see the Where to Go for More Information section of this report on page D-3.
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. INVESTMENT TRANSACTIONS AND INCOME
Investment transactions are recorded on a trade date basis. Dividend income is recorded on the ex-dividend date. Interest income, adjusted for amortization of premium and accretion of discount, is recorded daily on an accrual basis. Facility fees and other fees (such as origination fees) received from senior loans purchased (see Note 4) 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 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 recorded as interest income when received. Realized gains and losses from investment transactions are recorded on the basis of identified cost, which is also used for Federal income tax purposes.
B. DISTRIBUTIONS TO SHAREHOLDERS
The Funds declare and pay dividends on net investment income at least annually, except for the PL Short Duration Income Fund, PL Income Fund, PL Strategic Income Fund, PL Floating Rate Income Fund, PL High Income Fund and PL Money Market Fund. Dividends, if any, are generally declared and paid monthly for the PL Short Duration Income Fund, PL Income Fund, PL Strategic Income Fund, PL Floating Rate Income Fund and PL High Income Fund and declared daily and paid monthly for the PL Money Market Fund. Dividends may be declared more or less frequently if advantageous to the specific Fund and its shareholders. All realized capital gains are distributed at least annually for each Fund. Dividends and distributions paid to shareholders are recorded on the ex-dividend date.
C. FOREIGN CURRENCY TRANSLATION
The Trust’s accounting records are maintained in U.S. dollars. The market value of investments and other assets and liabilities, initially expressed in non-U.S. currencies, are translated into U.S. dollars based on the applicable exchange rates at the end of each business day. Purchases and sales of investments and income and expenses, denominated in foreign currencies, are translated into U.S. dollars at the exchange rates in effect on the transaction date.
None of the Funds separately report the effect of changes in foreign exchange rates from changes in market prices of investments held. Such changes are included with the net realized gain or loss and change in net unrealized appreciation or depreciation on investments. Other foreign currency transactions resulting in realized and unrealized gain or loss, if any, are reported separately as net realized gain or loss on foreign currency transactions and change in net unrealized appreciation or depreciation on foreign currencies.
C-1
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
D. ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES
Income, non-class specific expenses, and realized and unrealized gains and losses are allocated on a daily basis to each class of shares based upon the relative portion of net assets of each class. Certain Trust expenses directly attributable to a particular Fund are charged to that Fund (such as Fund-specific transactional fees, proxies, liquidations, litigation, and organizational/start-up costs) and class-specific fees and expenses are charged directly to the respective share class within each Fund. Generally, other Trust expenses are allocated proportionately among all the Funds in relation to the net assets of each Fund.
E. OFFERING COSTS
A new Fund bears all costs (or the applicable pro-rata share if there is more than one new Fund) associated with the offering expenses of the Fund including legal, printing and support services (see Note 5). All such costs are amortized as an expense of the new Fund on a straight-line basis over twelve months from commencement of operations.
F. RECENT ACCOUNTING PRONOUNCEMENT
In December 2011, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) that requires disclosures to make financial statements that are prepared under U.S. GAAP more comparable to those prepared under International Financial Reporting Standards. The new disclosure requirements mandate that entities disclose both gross and net information about instruments and transactions eligible for offset in the statement of assets and liabilities such as instruments and transactions subject to an agreement similar to a master netting arrangement. In addition, the ASU requires disclosure of collateral received and posted in connection with master netting agreements or similar arrangements. The ASU is effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact, if any, that the implementation of this ASU will have on the Trust’s financial statement disclosures.
3. VALUATION AND FAIR VALUE MEASUREMENTS
A. VALUATION POLICY AND PROCEDURES
The Trust’s Board of Trustees (the “Board”) has adopted procedures (“Trust Procedures”) for determining the value of its investments each business day. Under the Trust Procedures, the Board has delegated its authority to a Trustee Valuation Committee or another valuation committee to determine the value of each Fund’s assets each business day. Each valuation committee that values each Fund’s investments does so in accordance with the Trust Procedures, which includes using third party pricing services and/or alternate valuation methodologies approved by the Board. Notes 3B and 3C below describe in greater detail the methodologies used to value each Fund’s investments.
B. NET ASSET VALUE
Each Fund is divided into shares. The price per share of each class of a Fund’s shares is called the NAV. The NAV forms the basis for all transactions involving buying, selling, exchanging or reinvesting shares. Each Fund’s NAV is calculated by taking the total value of a Fund’s assets (the value of the securities and other investments a Fund holds), subtracting a Fund’s liabilities, and dividing by the total number of shares outstanding.
Each Fund’s NAV is calculated once a day, every day the New York Stock Exchange (“NYSE”) is open, including days when foreign markets are closed. For purposes of calculating the NAV, the value of investments held by each Fund is generally determined as of the time of the close of the NYSE, which is usually 4:00 p.m. Eastern Time. Information that becomes known to the Trust or its agents after the NAV has been calculated on a particular day will not normally be used to retroactively adjust the price of an investment or the NAV determined earlier that day.
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 Securities and Exchange Commission (“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.
Certain Funds may hold investments that are primarily listed on foreign exchanges. Because those investments trade on weekends or days when the Funds do not calculate their NAVs, the value of those investments may change on days when a shareholder will not be able to purchase or redeem Fund shares.
C. INVESTMENT VALUATION
The value of each security or other investment is the amount which a Fund might reasonably expect to receive for the investment upon its current sale in the ordinary course of business. For purposes of calculating the NAV, the value of investments held by each Fund is based primarily on pricing data obtained from various sources approved by the Board.
Portfolio Optimization Funds
The investments of each Portfolio Optimization Fund consist of Class P shares of the PL Underlying Funds, which are valued at their respective NAV’s at the time of computation.
Money Market Instruments and Short-Term Investments
The investments of the PL Money Market Fund and money market and short-term investments in other Funds maturing within 60 days are valued at amortized cost in accordance with the 1940 Act. Amortized cost involves valuing an investment 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 investment. Fund investments in other mutual funds for temporary cash management purposes are valued at their respective NAVs.
C-2
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
Domestic Equity Investments
For domestic equity investments (including exchange-traded futures and options), the Funds use the last reported sale price or official closing price as of the time of the NYSE close and do not normally take into account trading, clearances or settlements that take place after the NYSE close. Investments, for which no sales are reported, are generally valued at the mean between the most recent bid and ask prices obtained from approved pricing services, established market makers, or from broker-dealers.
Domestic and Foreign Fixed Income Investments
Fixed income investments are generally valued by approved pricing and quotation services using the mean between the most recent bid and ask prices which are based upon evaluated prices determined from various observable market and other factors. Certain bonds are valued by benchmark, matrix, or other pricing processes approved by the Board.
Investment Values Determined by a Valuation Committee
The Trust Procedures include methodologies approved for valuing investments in circumstances where market quotations are not readily available. In such circumstances, the Trust Procedures provide that the value of such investments may be determined in accordance with alternative valuation methodologies. Under the Trust Procedures these alternative methodologies may include, among others, the use of broker quotes, the use of a purchase price for initial public offerings, proration rates, and benchmark and matrix pricing. In the event market quotations or alternate valuation methodologies are not readily available or reliable, the value of the investments will be determined in good faith by the Trustee Valuation Committee or determined by a valuation committee established under the Trust Procedures and then subsequently approved by the Board. Valuations determined by the Trustee Valuation Committee or other valuation committee may require subjective inputs about the value of such investments. While these valuations are intended to estimate the value a Fund might reasonably expect to receive upon the current sale of the investments in the ordinary course of business, such values may differ from the value that a Fund would actually realize if the investments were sold.
Market quotations are considered not readily available if: (1) the market quotations received are deemed unreliable or inaccurate, (2) approved pricing services do not provide a valuation for a particular investment, or (3) material events occur after the close of the principal market for a particular investment but prior to the close of the NYSE.
D. FAIR VALUE MEASUREMENTS AND DISCLOSURES
The Trust characterizes its investments as Level 1, Level 2 or Level 3 based upon the various inputs or methodologies used to value the investments. Under the Trust Procedures, a valuation oversight committee (“VOC”) has been established which determines the level in which each Fund’s investments are characterized. The VOC includes investment, legal and compliance members of the Trust’s adviser, its administrator, and the Trust’s Chief Compliance Officer (“CCO”). The three-tier hierarchy of inputs is summarized in the three broad levels listed below:
• Level 1 - Quoted | prices (unadjusted) in active markets for identical investments |
• 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 VOC reviews the Trust Procedures periodically (at least annually) to determine the validity and accuracy of the inputs and methodologies used to value each Fund’s investments. The VOC also periodically re-evaluates how each Fund’s investments are characterized within the three-tier hierarchy and the validity of third party pricing sources. The VOC also periodically (at least annually) conducts back testing of the methodologies used to value Level 3 investments to substantiate the unobservable inputs used to value those investments. Such back-testing includes comparing Level 3 investment values to subsequently available exchange-traded prices, transaction prices, and/or observable vendor prices. All changes to the Trust Procedures are reported to the Board on a quarterly basis with material changes, as determined by the Trust’s CCO, requiring approval by the Board. In addition, all investments categorized as Level 3 under the three-tier hierarchy are reported to the Chairman of the Audit Committee on a quarterly basis and such report includes the inputs and methodologies used to value those investments.
The inputs or methodologies used for valuing each Fund’s investments are not necessarily an indication of the relative risks associated with investing in those investments. For example, 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 an investment, but since the value is not obtained from a quoted price in an active market, such investments are reflected as Level 2. Foreign investments 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 3C) are reflected as Level 2. For fair valuations using significant unobservable inputs, the Trust presents 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 between levels are based on values at the end of the period. A summary of each Fund’s investments as of September 30, 2012 as categorized under the three-tier hierarchy of inputs can be found in the Notes to Schedule of Investments section of each Fund’s Schedule of Investments.
The following is a description of valuation inputs and techniques that the Trust currently utilizes to fair value each major category of assets and liabilities:
Equity Securities (Common and Preferred Stock) and Mutual Funds
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
C-3
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
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.
Investments in mutual funds, including affiliated mutual funds, are valued at their respective NAV and are categorized as Level 1.
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-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.
Corporate Bonds and Notes and U.S. Government & Agency Issues
Corporate bonds held by a Fund are generally comprised of 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, issuer credit information and options-adjusted spread models where applicable. 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.
U.S. Government & Agency Issues 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, issuer credit information, and options-adjusted spread models where applicable. To the extent that these inputs are observable and timely, the fair values of U.S. Government & Agency Issues would be categorized as Level 2; otherwise the fair values would be categorized as Level 3.
Senior Loan Notes
Floating rate 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 broker-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.
Short-Term Investments
Short-term investments maturing within 60 days are valued using amortized cost, which is used if it approximates market value, and are reflected as Level 2. Repurchase agreements are fully collateralized. The collateral is evaluated daily to ensure its market value equals or exceeds the current market value of the repurchase agreements including accrued interest.
4. INVESTMENTS AND RISKS
General Investment Risks
An investment in each Fund represents an indirect investment in the assets owned by that Fund. As with any mutual fund, the value of assets owned by a Fund 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 amount invested. Events in the financial markets have the potential to cause increased volatility and uncertainty, which may impact the value of each Fund’s investments. 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 investments 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 investments. 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.
Fund of Funds Investments
The Portfolio Optimization Funds are exposed to the same risks as the PL Underlying Funds in direct proportion to the allocation of assets among those funds. The semi-annual report for the PL Underlying Funds contains information about the risks associated with investing in the PL Underlying Funds. Allocations among the PL 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 PL Underlying Funds may cause them to underperform other mutual funds with a similar investment objective. Although the Portfolio Optimization Funds seek to provide diversification across major asset classes, they may invest a significant portion of their assets in any one or several PL Underlying Funds (See Note 6C).
Equity Investments
The price of equity investments changes in response to many factors, including a company’s historical and prospective earnings, cash flows, the value of its assets, investor perceptions and many of the General Investment Risk factors noted above.
C-4
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
Fixed Income Investments
Fixed income (debt) investments are affected primarily by the financial condition of the companies or other entities 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) investments. There is a risk that an issuer of a Fund’s fixed income (debt) investments 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, e.g., bonds with low credit ratings by Moody’s (Ba or lower) or Standard & Poor’s (BB and lower) or if unrated are of comparable quality as determined by the manager, 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 investments 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 investments, and it may be difficult to value these instruments because of a thin secondary market.
Foreign Investments
There are certain additional risks involved in investing in foreign securities that are generally not inherent in investments in domestic securities. These risks may involve foreign currency fluctuations, adverse political, social and economic developments and the possible imposition of currency exchange blockages or other foreign governmental laws or restrictions. In addition, the securities of some foreign companies and securities markets are less liquid and at times more volatile than securities of comparable U.S. companies and U.S. securities markets. The markets in emerging markets countries can be extremely volatile. The foreign investments of the PL Money Market Fund must be denominated in U.S. dollars.
Illiquid Investments
Each Fund may not invest in illiquid securities and illiquid bank loans (collectively, “Illiquid Investments”) 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 Investments. The term “Illiquid Investments” for this purpose means investments 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 investments. Illiquid Investments may be difficult to value and difficult to sell, which means a Fund may not be able to sell such investments quickly for their full value. The value of Illiquid Investments held by each Fund as of September 30, 2012 was less than 15% of its net assets (5% of total assets for the PL Money Market Fund).
Senior Loan Participations and Assignments
Certain Funds may invest in Senior Loans, the interest rates of which float or adjust periodically based upon a specified adjustment schedule, benchmark indicator, or prevailing interest rates of domestic or foreign corporations, partnerships and other entities (“Borrowers”). Senior Loans generally pay interest at rates which are periodically redetermined by reference to a base lending rate plus a premium. These base lending rates generally include prime rates of one or more major U.S. banks, LIBOR rates or certificates of deposit rates. Senior Loans often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay cannot be predicted with accuracy. As a result, the actual maturity may be substantially less than the stated maturities. Senior Loans are exempt from registration under the Securities Act of 1933, may contain certain restrictions on resale, and cannot be sold publicly. A Fund’s investments in Senior Loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties.
When a Fund purchases assignments, it acquires all the rights and obligations under the loan agreement of the assigning lender. Assignments may, however, be arranged through private negotiations between potential assignees and potential assignors, and the rights and obligations acquired by the purchaser of an assignment may differ from, and be more limited than those held by the assigning lender.
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 investing in 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 with 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, 2012, no participation interest in Senior Loans was held by any of the Funds covered in this report.
U.S. Government Agencies or Government-Sponsored Enterprises
Certain Funds may invest in U.S. Government agencies or government-sponsored enterprises. U.S. Government securities are obligations of and, in certain cases, guaranteed by, the U.S. Government, its agencies or instrumentalities. The U.S. Government does not guarantee the NAV of each Fund’s shares. Some U.S. Government securities, such as Treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association (“GNMA” or “Ginnie Mae”), are supported by the full faith and credit of the United States Government; others, such as those of the Federal Home Loan Bank, are supported by the right of the issuer to borrow from the U.S. Department of the Treasury (the “U.S. Treasury”); others, such as those of the Federal National Mortgage Association (“FNMA” or “Fannie Mae”), are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations. Securities not backed by the full faith and credit of the United States Government may be subject to a greater risk of default. U.S. Government securities may include zero
C-5
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
coupon securities, which do not distribute interest on a current basis and tend to be subject to greater risk than interest-paying securities of similar maturities.
Government-related guarantors (i.e., not backed by the full faith and credit of the United States Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). FNMA is a government-sponsored corporation, the common stock of which is owned entirely by private stockholders. FNMA purchases conventional (i.e., not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks and credit unions and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the United States Government. FHLMC issues Participation Certificates (“PCs”), which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit of the United States Government.
5. INVESTMENT ADVISORY, ADMINISTRATION AND SHAREHOLDER SERVICES, SUPPORT SERVICES AND DISTRIBUTION AGREEMENTS
Pursuant to an Investment Advisory Agreement, PLFA, a wholly-owned subsidiary of Pacific Life Insurance Company (“Pacific Life”), serves as investment adviser to the Trust. PLFA manages the Portfolio Optimization Funds. PLFA also manages the PL Short Duration Income Fund, PL Income Fund, PL Strategic Income Fund, PL Floating Rate Income Fund, PL High Income Fund and PL Money Market Fund under the name Pacific Asset Management. 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 | 0.20% | PL Portfolio Optimization | 0.20% | PL Floating Rate Income | 0.65% | |||||
PL Portfolio Optimization | 0.20% | PL Short Duration Income | 0.40% | PL High Income | 0.60% | |||||
PL Portfolio Optimization Moderate | 0.20% | PL Income | 0.50% | PL Money Market | See (1) | |||||
PL Portfolio Optimization | 0.20% | PL Strategic Income | 0.60% |
(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 “Administration Agreement”), Pacific Life serves as administrator (the “Administrator”) to the Trust. During the reporting period, the Trust paid the Administrator an administration fee at an annual rate of 0.15% for each class of the Portfolio Optimization Funds (which invest in the PL Underlying Funds that also have an administration fee at an annual rate of 0.15%) and Class I shares of the PL Short Duration Income Fund, PL Income Fund, PL Strategic Income Fund, PL Floating Rate Income Fund and PL High Income Fund. The Trust also compensated the Administrator at an annual rate of 0.30% for each class of the PL Money Market Fund and Class A, Class C and Advisor Class shares of the PL Short Duration Income Fund, PL Income Fund, PL Strategic Income Fund, PL Floating Rate Income Fund and PL High Income Fund. The administration 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 Adviser’s responsibilities under the Administration Agreement and Investment Advisory Agreement. 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 Pacific Life and PLFA (including individuals who may be officers or Trustees of the Trust), 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 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. Under the Distribution Agreement, 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 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 (“Class A Plan”) and an Advisor Class Service Plan (“Advisor Class Plan”) which were not adopted in accordance with Rule 12b-1 under the 1940 Act. 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 B, C, and R shares. Under the Class A Plan and the Advisor Class Plan, each Fund paid the Distributor service fees at an annual rate of 0.25% of the average daily net assets attributable to the applicable share class. Effective October 1, 2012, the Advisor Class Plan will be terminated and the related 0.25% service fee imposed under that plan will be eliminated. There are no distribution and service fees for Class I shares. The distribution and service fees were accrued daily. For the six-month period ended September 30, 2012, the Distributor, acting as underwriter, received net commissions (front-end sales charges) of $10,390,579 from the sale of Class A shares and received $443,151 in CDSC from redemptions of Class A, B and C shares.
C-6
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
6. TRANSACTIONS WITH AFFILIATES
A. ADVISORY FEES, ADMINISTRATION FEES, DISTRIBUTION AND SERVICE FEES AND EXPENSES FOR SUPPORT SERVICES
The Adviser, the Distributor and Pacific Life are related parties. The advisory fees paid to the Adviser, the administration fees paid to Pacific Life, the distribution and service fees paid to the Distributor, including any fee waivers, and expenses for support services paid to PLFA and Pacific Life (see Note 5) by each Fund covered in this report for the six-month period ended September 30, 2012 are presented in the Statements of Operations. The amounts of each of these fees that remained payable as of September 30, 2012 are presented in the Statements of Assets and Liabilities.
B. EXPENSE LIMITATION AGREEMENTS
To help limit the Trust’s expenses, PLFA has entered into expense limitation agreements with the Trust and has contractually agreed to reimburse each Fund for certain operating expenses that exceed an annual rate based on a percentage of a Fund’s average daily net assets. These operating expenses include, but are not limited to, administration fees, organizational expenses, custody expenses, expenses for audit, tax and certain legal services, preparation, printing, filing and distribution to existing shareholders of proxies, prospectuses and shareholder reports and other regulatory documents as applicable, independent trustees’ fees and establishing, overseeing and administering the Trust’s compliance program. These operating expenses do not include investment advisory fees; distribution and/or service fees; dividends on securities sold short; acquired fund fees and expenses; interest; taxes (including foreign taxes on dividends, interest or gains); brokerage commissions and other transactional expenses and extraordinary expenses such as litigation expenses and other expenses not incurred in the ordinary course of each Fund’s business. The current expense cap for each Portfolio Optimization Fund is 0.15% through June 30, 2015 and 0.30% thereafter through June 30, 2022. The current expense cap for the PL Short Duration Income Fund, PL Strategic Income Fund and PL High Income Fund is 0.20% through June 30, 2015. The current expense cap for the PL Income Fund is 0.15% through June 30, 2014 and 0.20% thereafter through June 30, 2015. The current expense cap for the PL Floating Rate Income Fund is 0.15% through December 31, 2014 and 0.20% thereafter through June 30, 2015. The current expense cap for the PL Money Market Fund is 0.30% through June 30, 2013. There is no guarantee that PLFA will continue to reimburse expenses upon the expiration of the applicable expense caps.
Any expense reimbursements are subject to repayment to PLFA for a period of time as permitted under regulatory and 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 current 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. There was no recoupment of expense reimbursement by PLFA from any Funds covered in this report during the six-month period ended September 30, 2012.
For the PL Money Market Fund, in addition to the above expense cap, PLFA, the Administrator and/or the Distributor have agreed, temporarily, to waive all or a portion of their fees, to the extent necessary to prevent the Fund’s expenses from exceeding earnings (i.e., to prevent the Fund from having a negative yield). However, there can be no assurance that a negative yield will not occur. Any fee waivers for the PL Money Market Fund are not subject to repayment to PLFA, the Administrator and/or the Distributor. There is no guarantee that PLFA, the Administrator, and/or the Distributor will continue to waive a portion of their fees in the future.
The investment adviser expense reimbursement, the advisory fee waiver, the administration fee waiver, and the service fee waiver, if any, of each of the applicable Funds covered in this report for the six-month period ended September 30, 2012 are presented in the Statements of Operations. Any amounts that remained due from the Adviser as of September 30, 2012 are presented in the Statements of Assets and Liabilities.
The cumulative reimbursement and fee reduction amounts, if any, as of September 30, 2012 that are subject to repayment for each Fund covered in this report are as follows:
Expiration Date | ||||||||||||||||
Funds | 3/31/2013 | 3/31/2014 | 3/31/2015 | 3/31/2016 | ||||||||||||
PL Portfolio Optimization Conservative | $592,826 | $486,514 | $406,199 | $228,297 | ||||||||||||
PL Portfolio Optimization Moderate-Conservative | 678,602 | 467,467 | 416,693 | 225,080 | ||||||||||||
PL Portfolio Optimization Moderate | 2,044,114 | 1,294,312 | 1,027,703 | 541,452 | ||||||||||||
PL Portfolio Optimization Moderate-Aggressive | 1,951,672 | 1,124,694 | 807,014 | 400,901 | ||||||||||||
PL Portfolio Optimization Aggressive | 851,173 | 477,661 | 316,090 | 149,714 | ||||||||||||
PL Short Duration Income | 42,485 | 47,624 | ||||||||||||||
PL Income | 85,763 | 651,413 | 579,634 | |||||||||||||
PL Strategic Income | 45,025 | 55,804 | ||||||||||||||
PL Floating Rate Income | 123,956 | 124,881 | ||||||||||||||
PL High Income | 42,254 | 49,623 | ||||||||||||||
PL Money Market | 147,762 | 112,758 | 93,514 | 54,025 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $6,266,149 | $4,049,169 | $3,972,346 | $2,457,035 | ||||||||||||
|
|
|
|
|
|
|
|
Due to the current regulatory and 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, 2009 expired for future recoupment as of March 31, 2012. 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, 2012.
C-7
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
C. INVESTMENTS IN AFFILIATED FUNDS
As of September 30, 2012, each of the Portfolio Optimization Funds (aggregate of Classes A, B, C and R) owned Class P shares in each of the applicable affiliated PL Underlying Funds. A summary of transactions for the six-month period ended September 30, 2012 and total investments by each of the Portfolio Optimization Funds in each PL Underlying Fund as of September 30, 2012 is as follows:
Fund/Underlying Fund | Beginning Value as of April 1, 2012 | Purchase Cost | Sales Proceeds | Net Realized | Change in Appreciation | As of September 30, 2012 | ||||||||||||||||||||||||||
Ending Value | Shares Balance | Ownership Percentage | ||||||||||||||||||||||||||||||
PL Portfolio Optimization Conservative Fund | ||||||||||||||||||||||||||||||||
PL Floating Rate Loan | $35,101,966 | $3,712,919 | $10,632,839 | $25,128 | $767,382 | $28,974,556 | 2,788,696 | 29.09% | ||||||||||||||||||||||||
PL Inflation Managed | 68,199,217 | 8,152,106 | 25,837,368 | 957,122 | 2,868,163 | 54,339,240 | 4,745,785 | 30.69% | ||||||||||||||||||||||||
PL Managed Bond | 145,233,374 | 20,322,183 | 3,901,484 | (20,937 | ) | 7,993,311 | 169,626,447 | 14,827,487 | 29.88% | |||||||||||||||||||||||
PL Short Duration Bond | 53,261,770 | 21,739,426 | 852,904 | (682 | ) | 992,868 | 75,140,478 | 7,352,297 | 33.12% | |||||||||||||||||||||||
PL Emerging Markets Debt | — | 27,609,900 | 230,392 | 2,088 | 1,570,800 | 28,952,396 | 2,731,358 | 33.78% | ||||||||||||||||||||||||
PL Comstock | 15,809,818 | 5,852,768 | 509,376 | 8,328 | 830,268 | 21,991,806 | 1,720,799 | 8.28% | ||||||||||||||||||||||||
PL Large-Cap Growth | 8,315,703 | 2,071,914 | 564,697 | 39,998 | 117,672 | 9,980,590 | 969,931 | 7.37% | ||||||||||||||||||||||||
PL Large-Cap Value | 19,630,552 | 3,197,814 | 3,373,710 | 114,526 | 740,182 | 20,309,364 | 1,589,152 | 6.15% | ||||||||||||||||||||||||
PL Main Street Core | 7,786,550 | 1,329,821 | 168,116 | (473 | ) | 258,352 | 9,206,134 | 802,627 | 4.30% | |||||||||||||||||||||||
PL Mid-Cap Equity | 11,699,118 | 2,015,489 | 6,506,170 | 391,725 | (1,053,126 | ) | 6,547,036 | 668,065 | 5.09% | |||||||||||||||||||||||
PL Mid-Cap Growth | — | 7,162,548 | 54,855 | (1,311 | ) | 48,894 | 7,155,276 | 886,651 | 11.54% | |||||||||||||||||||||||
PL International Large-Cap | 11,739,271 | 3,080,805 | 266,766 | (21,333 | ) | 222,705 | 14,754,682 | 984,302 | 6.73% | |||||||||||||||||||||||
PL International Value | 7,620,789 | 2,038,880 | 410,930 | (8,928 | ) | (21,302 | ) | 9,218,509 | 1,097,442 | 6.07% | ||||||||||||||||||||||
$384,398,128 | $108,286,573 | $53,309,607 | $1,485,251 | $15,336,169 | $456,196,514 | |||||||||||||||||||||||||||
PL Portfolio Optimization Moderate-Conservative Fund | ||||||||||||||||||||||||||||||||
PL Floating Rate Loan | $26,122,815 | $3,178,137 | $3,505,096 | ($7,096 | ) | $727,400 | $26,516,160 | 2,552,085 | 26.63% | |||||||||||||||||||||||
PL Inflation Managed | 51,388,726 | 5,619,849 | 17,391,005 | 568,140 | 2,360,128 | 42,545,838 | 3,715,794 | �� | 24.02% | |||||||||||||||||||||||
PL Managed Bond | 103,929,699 | 11,607,052 | 8,729,104 | 41,831 | 5,488,810 | 112,338,288 | 9,819,780 | 19.79% | ||||||||||||||||||||||||
PL Short Duration Bond | 37,087,423 | 15,838,780 | 260,522 | (83 | ) | 708,297 | 53,373,895 | 5,222,495 | 23.53% | |||||||||||||||||||||||
PL Emerging Markets Debt | — | 13,528,885 | 53,419 | 783 | 798,449 | 14,274,698 | 1,346,670 | 16.65% | ||||||||||||||||||||||||
PL Comstock | 22,937,445 | 5,898,958 | 143,363 | (2,929 | ) | 999,040 | 29,689,151 | 2,323,095 | 11.19% | |||||||||||||||||||||||
PL Growth LT | 8,162,251 | — | 5,544,327 | 555,269 | (892,964 | ) | 2,280,229 | 173,270 | 5.58% | |||||||||||||||||||||||
PL Large-Cap Growth | 16,703,941 | 1,497,568 | 218,543 | 6,417 | 57,006 | 18,046,389 | 1,753,779 | 13.32% | ||||||||||||||||||||||||
PL Large-Cap Value | 30,886,858 | 6,056,266 | 211,609 | (1,096 | ) | 1,552,074 | 38,282,493 | 2,995,500 | 11.60% | |||||||||||||||||||||||
PL Main Street Core | 19,364,841 | 5,615,885 | 141,749 | 1,081 | 801,710 | 25,641,768 | 2,235,551 | 11.96% | ||||||||||||||||||||||||
PL Mid-Cap Equity | 15,326,405 | 1,473,041 | 7,151,460 | (13,811 | ) | (863,888 | ) | 8,770,287 | 894,927 | 6.83% | ||||||||||||||||||||||
PL Mid-Cap Growth | 8,475,728 | 514,031 | 3,200,462 | (328,912 | ) | (431,050 | ) | 5,029,335 | 623,214 | 8.11% | ||||||||||||||||||||||
PL Small-Cap Growth | — | 5,736,578 | 21,044 | 72 | 206,616 | 5,922,222 | 502,735 | 13.50% | ||||||||||||||||||||||||
PL Small-Cap Value | 3,730,125 | 660,608 | 22,005 | (1,102 | ) | 71,514 | 4,439,140 | 416,821 | 4.11% | |||||||||||||||||||||||
PL Emerging Markets | 4,088,047 | 3,864,300 | 55,683 | (6,293 | ) | 295,326 | 8,185,697 | 600,124 | 7.70% | |||||||||||||||||||||||
PL International Large-Cap | 20,120,603 | 2,380,626 | 164,852 | (11,685 | ) | 30,908 | 22,355,600 | 1,491,368 | 10.20% | |||||||||||||||||||||||
PL International Value | 11,742,921 | 4,471,321 | 93,821 | (16,021 | ) | (18,380 | ) | 16,086,020 | 1,915,002 | 10.60% | ||||||||||||||||||||||
$380,067,828 | $87,941,885 | $46,908,064 | $784,565 | $11,890,996 | $433,777,210 | |||||||||||||||||||||||||||
PL Portfolio Optimization Moderate Fund | ||||||||||||||||||||||||||||||||
PL Floating Rate Loan | $50,882,158 | $3,690,949 | $11,692,912 | $12,260 | $1,202,276 | $44,094,731 | 4,243,959 | 44.28% | ||||||||||||||||||||||||
PL Inflation Managed | 111,021,687 | 8,132,205 | 66,752,550 | 3,651,779 | 1,972,854 | 58,025,975 | 5,067,771 | 32.76% | ||||||||||||||||||||||||
PL Managed Bond | 172,681,481 | 21,595,996 | 3,811,353 | 41,645 | 9,374,701 | 199,882,470 | 17,472,244 | 35.21% | ||||||||||||||||||||||||
PL Short Duration Bond | 50,536,332 | 28,426,789 | 243,293 | 68 | 1,034,176 | 79,754,072 | 7,803,725 | 35.16% | ||||||||||||||||||||||||
PL Emerging Markets Debt | — | 31,144,789 | 92,715 | 1,165 | 1,855,138 | 32,908,377 | 3,104,564 | 38.39% | ||||||||||||||||||||||||
PL Comstock | 80,926,793 | 17,433,924 | 306,444 | (44,501 | ) | 3,256,733 | 101,266,505 | 7,923,827 | 38.17% | |||||||||||||||||||||||
PL Growth LT | 40,803,800 | 1,488,007 | 28,743,305 | 1,769,536 | (3,446,134 | ) | 11,871,904 | 902,120 | 29.10% | |||||||||||||||||||||||
PL Large-Cap Growth | 53,695,918 | 3,263,607 | 244,478 | (3,924 | ) | 154,956 | 56,866,079 | 5,526,344 | 41.98% | |||||||||||||||||||||||
PL Large-Cap Value | 102,395,841 | 21,661,329 | 390,781 | (2,987 | ) | 5,155,104 | 128,818,506 | 10,079,695 | 39.02% | |||||||||||||||||||||||
PL Main Street Core | 72,466,065 | 10,066,869 | 256,549 | 2,762 | 2,147,737 | 84,426,884 | 7,360,670 | 39.39% | ||||||||||||||||||||||||
PL Mid-Cap Equity | 61,135,915 | 3,822,580 | 11,426,235 | (1,137,845 | ) | (2,037,440 | ) | 50,356,975 | 5,138,467 | 39.20% | ||||||||||||||||||||||
PL Mid-Cap Growth | 21,228,466 | — | 5,558,610 | (750,692 | ) | (1,185,845 | ) | 13,733,319 | 1,701,774 | 22.14% | ||||||||||||||||||||||
PL Small-Cap Growth | 10,181,466 | 2,893,131 | 40,623 | (1,057 | ) | 40,965 | 13,073,882 | 1,109,837 | 29.82% | |||||||||||||||||||||||
PL Small-Cap Value | 30,238,045 | 8,062,660 | 118,779 | (4,923 | ) | 597,387 | 38,774,390 | 3,640,788 | 35.91% | |||||||||||||||||||||||
PL Real Estate | 20,203,471 | 700,494 | 68,885 | 4,526 | 445,978 | 21,285,584 | 1,652,607 | 39.93% | ||||||||||||||||||||||||
PL Emerging Markets | 31,173,205 | 12,209,926 | 131,141 | (18,613 | ) | 1,161,206 | 44,394,583 | 3,254,735 | 41.74% | |||||||||||||||||||||||
PL International Large-Cap | 82,466,664 | 6,173,342 | 241,543 | (33,965 | ) | (84,438 | ) | 88,280,060 | 5,889,264 | 40.26% | ||||||||||||||||||||||
PL International Value | 30,144,471 | 23,325,067 | 158,956 | (67,683 | ) | 433,493 | 53,676,392 | 6,390,047 | 35.36% | |||||||||||||||||||||||
$1,022,181,778 | $204,091,664 | $130,279,152 | $3,417,551 | $22,078,847 | $1,121,490,688 |
C-8
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
Fund/Underlying Fund | Beginning Value as of April 1, 2012 | Purchase Cost | Sales Proceeds | Net Realized | Change in Appreciation | As of September 30, 2012 | ||||||||||||||||||||||||||
Ending Value | Shares Balance | Ownership Percentage | ||||||||||||||||||||||||||||||
PL Portfolio Optimization Moderate-Aggressive Fund | ||||||||||||||||||||||||||||||||
PL Inflation Managed | $57,292,440 | $3,834,755 | $41,685,756 | $2,562,388 | $192,511 | $22,196,338 | 1,938,545 | 12.53% | ||||||||||||||||||||||||
PL Managed Bond | 57,670,797 | 17,619,857 | 902,128 | 1,321 | 3,525,173 | 77,915,020 | 6,810,754 | 13.72% | ||||||||||||||||||||||||
PL Short Duration Bond | 14,493,982 | 4,037,896 | 198,737 | 18 | 252,694 | 18,585,853 | 1,818,577 | 8.19% | ||||||||||||||||||||||||
PL Emerging Markets Debt | — | 9,130,086 | 91,532 | 3,585 | 542,528 | 9,584,667 | 904,214 | 11.18% | ||||||||||||||||||||||||
PL Comstock | 66,059,556 | 17,251,012 | 876,715 | (116,893 | ) | 2,878,660 | 85,195,620 | 6,666,324 | 32.11% | |||||||||||||||||||||||
PL Growth LT | 44,915,791 | — | 22,476,744 | 626,336 | (1,954,181 | ) | 21,111,202 | 1,604,195 | 51.75% | |||||||||||||||||||||||
PL Large-Cap Growth | 38,341,867 | 1,120,916 | 515,757 | 7,818 | (2,173 | ) | 38,952,671 | 3,785,488 | 28.75% | |||||||||||||||||||||||
PL Large-Cap Value | 81,402,000 | 22,792,542 | 1,110,657 | (6,347 | ) | 4,301,273 | 107,378,811 | 8,402,098 | 32.52% | |||||||||||||||||||||||
PL Main Street Core | 67,171,262 | 1,924,250 | 748,054 | 20,244 | 1,357,274 | 69,724,976 | 6,078,899 | 32.53% | ||||||||||||||||||||||||
PL Mid-Cap Equity | 57,904,304 | 2,973,710 | 12,376,200 | (1,373,505 | ) | (1,705,599 | ) | 45,422,710 | 4,634,970 | 35.36% | ||||||||||||||||||||||
PL Mid-Cap Growth | 29,526,051 | 2,453,143 | 4,781,108 | (796,509 | ) | (1,873,650 | ) | 24,527,927 | 3,039,396 | 39.55% | ||||||||||||||||||||||
PL Small-Cap Growth | 14,442,682 | 846,309 | 163,533 | 6,330 | (74,615 | ) | 15,057,173 | 1,278,198 | 34.34% | |||||||||||||||||||||||
PL Small-Cap Value | 35,788,864 | 9,964,651 | 479,241 | (16,006 | ) | 713,451 | 45,971,719 | 4,316,593 | 42.58% | |||||||||||||||||||||||
PL Real Estate | 22,694,774 | 17,371 | 318,597 | 7,386 | 515,986 | 22,916,920 | 1,779,264 | 42.99% | ||||||||||||||||||||||||
PL Emerging Markets | 36,453,408 | 2,693,738 | 408,832 | (50,687 | ) | 489,663 | 39,177,290 | 2,872,335 | 36.84% | |||||||||||||||||||||||
PL International Large-Cap | 66,066,327 | 4,679,260 | 735,897 | (74,808 | ) | (201,495 | ) | 69,733,387 | 4,651,994 | 31.80% | ||||||||||||||||||||||
PL International Value | 42,879,424 | 11,914,968 | 561,007 | (322,492 | ) | (243,110 | ) | 53,667,783 | 6,389,022 | 35.35% | ||||||||||||||||||||||
$733,103,529 | $113,254,464 | $88,430,495 | $478,179 | $8,714,390 | $767,120,067 | |||||||||||||||||||||||||||
PL Portfolio Optimization Aggressive Fund | ||||||||||||||||||||||||||||||||
PL Managed Bond | $7,013,338 | $1,340,395 | $762,291 | $14,278 | $363,299 | $7,969,019 | 696,593 | 1.40% | ||||||||||||||||||||||||
PL Comstock | 21,587,180 | 5,743,850 | 999,869 | (58,407 | ) | 918,668 | 27,191,422 | 2,127,654 | 10.25% | |||||||||||||||||||||||
PL Growth LT | 14,466,008 | 194,356 | 8,627,793 | 1,002,841 | (1,500,474 | ) | 5,534,938 | 420,588 | 13.57% | |||||||||||||||||||||||
PL Large-Cap Growth | 12,173,884 | 318,278 | 841,898 | 112,465 | (133,209 | ) | 11,629,520 | 1,130,177 | 8.58% | |||||||||||||||||||||||
PL Large-Cap Value | 28,681,436 | 6,597,849 | 1,317,536 | (23,645 | ) | 1,416,659 | 35,354,763 | 2,766,413 | 10.71% | |||||||||||||||||||||||
PL Main Street Core | 26,682,081 | 1,025,926 | 2,789,483 | (66,455 | ) | 478,681 | 25,330,750 | 2,208,435 | 11.82% | |||||||||||||||||||||||
PL Mid-Cap Equity | 19,035,285 | 672,367 | 1,393,460 | (102,988 | ) | (837,334 | ) | 17,373,870 | 1,772,844 | 13.52% | ||||||||||||||||||||||
PL Mid-Cap Growth | 14,338,560 | 1,014,981 | 2,476,150 | (287,886 | ) | (1,018,497 | ) | 11,571,008 | 1,433,830 | 18.66% | ||||||||||||||||||||||
PL Small-Cap Growth | 11,735,785 | 363,641 | 2,147,578 | 151,359 | (306,907 | ) | 9,796,300 | 831,605 | 22.34% | |||||||||||||||||||||||
PL Small-Cap Value | 16,400,533 | 2,978,638 | 804,050 | (35,536 | ) | 251,725 | 18,791,310 | 1,764,442 | 17.40% | |||||||||||||||||||||||
PL Real Estate | 9,772,549 | 30,843 | 904,572 | 39,418 | 168,516 | 9,106,754 | 707,046 | 17.08% | ||||||||||||||||||||||||
PL Emerging Markets | 13,759,699 | 1,257,840 | 541,600 | (43,550 | ) | 158,987 | 14,591,376 | 1,069,749 | 13.72% | |||||||||||||||||||||||
PL International Large-Cap | 23,517,244 | 1,697,752 | 920,861 | (41,345 | ) | (102,157 | ) | 24,150,633 | 1,611,116 | 11.01% | ||||||||||||||||||||||
PL International Value | 18,741,800 | 1,595,522 | 743,112 | (360,019 | ) | (70,653 | ) | 19,163,538 | 2,281,374 | 12.62% | ||||||||||||||||||||||
$237,905,382 | $24,832,238 | $25,270,253 | $300,530 | ($212,696 | ) | $237,555,201 |
As of September 30, 2012, Pacific Life owned the following percentages of the total (aggregate of Class A, C, I and Adviser Class) shares outstanding of each of the following Funds:
Fund | Ownership Percentage | |||
PL Short Duration Income | 76.91% | |||
PL Strategic Income | 75.02% | |||
PL Floating Rate Income | 31.08% | |||
PL High Income | 73.21% |
D. INDEPENDENT TRUSTEES
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. The fees and expenses of the independent trustees of the Board are presented in the Statements of Operations.
Each independent trustee of the Board is eligible to participate in the Trust’s Deferred Compensation Plan (the “Plan”). The 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 each Fund at the time of such deferral and are payable in accordance with the 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, at NAV of Class A shares of the corresponding Portfolio Optimization Funds, PL Short Duration Income Fund, PL Income Fund, PL Strategic Income Fund, PL Floating Rate Income Fund, PL High Income Fund and/or PL Money Market Fund, and/or Class P shares of the corresponding PL Underlying Funds without a sales load. The obligation of each Fund under the Plan (the “DCP Liability”) is recorded as a liability (accrued trustees’ fees and expenses and deferred compensation). Accordingly, the market value appreciation or depreciation on a Fund’s DCP Liability account will cause the expenses of that Fund to increase or decrease due to market fluctuation. The change in net unrealized appreciation or deprecation on a Fund’s DCP Liability account is recorded as an increase or decrease to expense (trustees’ fees and expenses). For the six-month period ended September 30, 2012, such expenses were increased by $270 for all applicable Funds covered in this report as a result of the market value appreciation on such accounts. As of September 30, 2012, the total amount in the DCP Liability accounts was $7,613 for all applicable Funds covered in this report.
C-9
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
E. OFFICERS OF THE TRUST
None of the officers of the Trust received compensation from the Trust.
F. 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.
7. UNFUNDED SENIOR LOAN COMMITMENTS
Unfunded loan commitments on senior loan participations and assignments (Note 4), 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 is recorded as an asset (unfunded loan commitment appreciation) or a liability (unfunded loan commitment depreciation) and any change in net unrealized appreciation or depreciation for the reporting period is recorded as a change in net unrealized appreciation or depreciation on unfunded loan commitment. As of September 30, 2012, PL Floating Rate Income Fund had an unfunded loan commitment of $134,000 (see details in Note (c) in the Notes to Schedule of Investments).
8. PURCHASES AND SALES OF SECURITIES
The cost of purchases and proceeds from sales of investments (excluding short-term investments and the PL Money Market Fund since it trades exclusively in short-term debt investments) for the six-month period ended September 30, 2012, are summarized in the following table:
U.S. Government Securities | Other Securities | |||||||||||||||
Fund | Purchases | Sales | Purchases | Sales | ||||||||||||
PL Portfolio Optimization Conservative | $— | $— | $108,286,573 | $53,309,607 | ||||||||||||
PL Portfolio Optimization Moderate-Conservative | — | — | 87,941,885 | 46,908,064 | ||||||||||||
PL Portfolio Optimization Moderate | — | — | 204,091,664 | 130,279,152 | ||||||||||||
PL Portfolio Optimization Moderate-Aggressive | — | — | 113,254,464 | 88,430,495 | ||||||||||||
PL Portfolio Optimization Aggressive | — | — | 24,832,238 | 25,270,253 | ||||||||||||
PL Short Duration Income | — | — | 15,038,199 | 11,506,308 | ||||||||||||
PL Income | 19,917,861 | 19,583,449 | 489,905,073 | 346,134,075 | ||||||||||||
PL Strategic Income | 725,625 | 200,172 | 39,622,949 | 34,546,276 | ||||||||||||
PL Floating Rate Income | — | — | 103,490,755 | 71,945,111 | ||||||||||||
PL High Income | — | — | 9,013,883 | 6,589,253 |
9. FEDERAL INCOME TAX INFORMATION
Each Fund intends to qualify each year as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code (the “Code”). A Fund that qualifies as a RIC does not have to pay income tax as long as it distributes sufficient taxable income and net capital gains. Each Fund declared and paid sufficient dividends on net investment income and capital gains distributions during the year or period ended March 31, 2012, to qualify as a RIC and is not required to pay Federal income tax under the 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 in accordance with income tax regulations, which may differ from U.S. GAAP for financial reporting purposes. These differences are primarily due to differing treatments for short-term capital gain distributions received, late year ordinary and post-October capital 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 capital accounts. 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.
C-10
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
The following table shows the accumulated capital losses and components of distributable earnings on a tax basis, and late year ordinary losses and post-October capital losses deferred, if any, for tax purposes as of March 31, 2012:
Distributable Earnings | Late Year Ordinary and Post-October Losses Deferral | |||||||||||||||||||||||||
Fund | Accumulated Capital Losses | Undistributed Ordinary Income | Undistributed Long-Term Capital Gains | Late Year Ordinary Losses | Short-Term Capital Losses | Total | ||||||||||||||||||||
PL Portfolio Optimization Conservative | $— | $— | $867,444 | ($501,898 | ) | ($146,895 | ) | ($648,793 | ) | |||||||||||||||||
PL Portfolio Optimization Moderate-Conservative | (4,252,819 | ) | 263,341 | — | — | (125,683 | ) | (125,683 | ) | |||||||||||||||||
PL Portfolio Optimization Moderate | (20,077,747 | ) | 1,678,069 | — | — | (452,803 | ) | (452,803 | ) | |||||||||||||||||
PL Portfolio Optimization Moderate-Aggressive | (34,120,255 | ) | 1,546,988 | — | — | (197,311 | ) | (197,311 | ) | |||||||||||||||||
PL Portfolio Optimization Aggressive | (26,793,781 | ) | 410,296 | — | — | (203,208 | ) | (203,208 | ) | |||||||||||||||||
PL Short Duration Income | — | 64,048 | — | — | — | — | ||||||||||||||||||||
PL Income | — | 3,329,767 | 126,335 | — | — | — | ||||||||||||||||||||
PL Strategic Income | — | 268,111 | — | — | — | — | ||||||||||||||||||||
PL Floating Rate Income | (58,735 | ) | 50,152 | — | — | — | — | |||||||||||||||||||
PL High Income | — | 140,802 | — | — | — | — | ||||||||||||||||||||
PL Money Market | (149 | ) | — | — | (383 | ) | — | (383 | ) |
Accumulated capital losses represent net capital loss carryovers as of March 31, 2012 that may be available to offset future realized capital gains and thereby reduce future capital gains distributions. Under the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”), each Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. Any losses incurred during those future taxable years will be required to be utilized prior to any losses incurred in pre-enactment taxable years. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under the previous law. Each Fund’s first fiscal year end subject to the Modernization Act is March 31, 2012. The following table shows the expiration dates for capital loss carryover from pre-enactment taxable years and the amounts of capital loss carryover, if any, by each of the applicable Funds as of March 31, 2012:
Pre-Enactment | Post-Enactment | |||||||||||||||||||||||||
Unlimited Period of Net | Accumulated | |||||||||||||||||||||||||
Net Capital Loss Carryover Expiring in | Capital Loss Carryover | Capital Loss | ||||||||||||||||||||||||
Fund | 2017 | 2018 | 2019 | Short-Term | Long-Term | Carryover | ||||||||||||||||||||
PL Portfolio Optimization Moderate-Conservative | $— | ($4,252,819 | ) | $— | $— | $— | ($4,252,819 | ) | ||||||||||||||||||
PL Portfolio Optimization Moderate | — | (16,205,051 | ) | (3,872,696 | ) | — | — | (20,077,747 | ) | |||||||||||||||||
PL Portfolio Optimization Moderate-Aggressive | — | (30,011,150 | ) | (4,109,105 | ) | — | — | (34,120,255 | ) | |||||||||||||||||
PL Portfolio Optimization Aggressive | (951,758 | ) | (22,811,627 | ) | (3,030,396 | ) | — | — | (26,793,781 | ) | ||||||||||||||||
PL Floating Rate Income | — | — | — | (58,735 | ) | — | (58,735 | ) | ||||||||||||||||||
PL Money Market | — | — | — | (149 | ) | — | (149 | ) |
The aggregate Federal tax cost of investments and the composition of unrealized appreciation and depreciation on investments as of September 30, 2012, were as follows:
Fund | Total Cost of Investments on Tax Basis | Gross Unrealized Appreciation on Investments | Gross Unrealized Depreciation on Investments | Net Unrealized Appreciation (Depreciation) on Investments | Net Unrealized Appreciation (Depreciation) on Other (1) | Net Unrealized Appreciation (Depreciation) | ||||||||||||||||||
PL Portfolio Optimization Conservative | $417,590,077 | $38,606,437 | $— | $38,606,437 | $— | $38,606,437 | ||||||||||||||||||
PL Portfolio Optimization Moderate-Conservative | 390,806,516 | 42,970,694 | — | 42,970,694 | — | 42,970,694 | ||||||||||||||||||
PL Portfolio Optimization Moderate | 998,766,342 | 122,724,346 | — | 122,724,346 | — | 122,724,346 | ||||||||||||||||||
PL Portfolio Optimization Moderate-Aggressive | 678,831,079 | 91,644,977 | (3,355,989 | ) | 88,288,988 | — | 88,288,988 | |||||||||||||||||
PL Portfolio Optimization Aggressive | 206,716,221 | 31,497,560 | (658,580 | ) | 30,838,980 | — | 30,838,980 | |||||||||||||||||
PL Short Duration Income | 17,199,418 | 329,347 | — | 329,347 | — | 329,347 | ||||||||||||||||||
PL Income | 506,078,729 | 13,079,612 | (510,430 | ) | 12,569,182 | — | 12,569,182 | |||||||||||||||||
PL Strategic Income | 24,497,591 | 997,789 | (100,408 | ) | 897,381 | 4 | 897,385 | |||||||||||||||||
PL Floating Rate Income | 104,798,864 | 1,472,636 | (240,482 | ) | 1,232,154 | 3,000 | 1,235,154 | |||||||||||||||||
PL High Income | 11,239,200 | 454,201 | (23,851 | ) | 430,350 | 2 | 430,352 | |||||||||||||||||
PL Money Market | 30,250,047 | — | — | — | — | — |
(1) | Other includes net appreciation on unfunded loan commitments and foreign currency transactions. |
Each Fund recognizes the financial statement effects of a tax position taken or expected to be taken in a tax return when it is more likely than not, based on the technical merits, that the position will be sustained upon examination by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax liability for unrecognized tax benefits with a corresponding income tax expense. Each Fund is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions. As a result of each Fund’s evaluation, as of and during the six-month period ended September 30, 2012, each Fund did not record a liability for any unrecognized tax benefits. Each Fund’s policy is to recognize interest and penalties on unrecognized tax benefits in income tax expense. During the six-month period ended September 30, 2012, none of the Funds covered in this report incurred any interest or penalties. Each Fund is also
C-11
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next six months.
Each Fund remains subject to examination by Federal and State tax authorities (principal state jurisdictions include California and Delaware) for the tax years ended March 31, 2009 through March 31, 2012 for Federal purposes and March 31, 2008 through March 31, 2012 for State purposes.
10. TAX CHARACTER OF DISTRIBUTIONS
The tax character of income and capital gain distributions to shareholders during the six-month period ended September 30, 2012 and the year or period ended March 31, 2012, were as follows:
For the Six-Month Period Ended September 30, 2012 | For the Year or Period Ended March 31, 2012 | |||||||||||||||||||||||||
Fund | Ordinary Income | Long-Term Capital Gains | Total Distributions | Ordinary Income | Long-Term Capital Gains | Total Distributions | ||||||||||||||||||||
PL Portfolio Optimization Conservative | $— | $— | $— | $7,728,384 | $866,047 | $8,594,431 | ||||||||||||||||||||
PL Portfolio Optimization Moderate-Conservative | — | — | — | 5,748,565 | — | 5,748,565 | ||||||||||||||||||||
PL Portfolio Optimization Moderate | — | — | — | 10,718,539 | — | 10,718,539 | ||||||||||||||||||||
PL Portfolio Optimization Moderate-Aggressive | — | — | — | 4,781,380 | — | 4,781,380 | ||||||||||||||||||||
PL Portfolio Optimization Aggressive | — | — | — | 575,812 | — | 575,812 | ||||||||||||||||||||
PL Short Duration Income | 164,874 | — | 164,874 | 59,453 | — | 59,453 | ||||||||||||||||||||
PL Income | 5,245,978 | — | 5,245,978 | 5,113,218 | — | 5,113,218 | ||||||||||||||||||||
PL Strategic Income | 520,521 | — | 520,521 | 190,597 | — | 190,597 | ||||||||||||||||||||
PL Floating Rate Income | 1,677,352 | — | 1,677,352 | 1,286,518 | — | 1,286,518 | ||||||||||||||||||||
PL High Income | 275,596 | — | 275,596 | 117,780 | — | 117,780 |
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 for six-month period ended September 30, 2012 and the year or periods ended March 31, 2012 were as follows:
PL Portfolio Optimization Conservative Fund | PL Portfolio Optimization Moderate-Conservative Fund | PL Portfolio Optimization Moderate Fund | PL Portfolio Optimization Moderate-Aggressive Fund | |||||||||||||||||||||||||||||||||||
Six-Month Period Ended 9/30/2012 | Year Ended 3/31/2012 | Six-Month Period Ended 9/30/2012 | Year Ended 3/31/2012 | Six-Month Period Ended 9/30/2012 | Year Ended 3/31/2012 | Six-Month Period Ended 9/30/2012 | Year Ended 3/31/2012 | |||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||
Shares sold | 4,700,664 | 9,414,786 | 3,807,509 | 7,831,859 | 7,801,799 | 18,477,094 | 3,956,930 | 10,012,961 | ||||||||||||||||||||||||||||||
Dividends and distribution reinvested | — | 365,940 | — | 271,273 | — | 571,355 | — | 296,921 | ||||||||||||||||||||||||||||||
Shares repurchased | (2,356,645 | ) | (5,234,709 | ) | (1,864,147 | ) | (3,599,667 | ) | (4,075,456 | ) | (9,238,552 | ) | (2,570,974 | ) | (5,875,333 | ) | ||||||||||||||||||||||
Net increase | 2,344,019 | 4,546,017 | 1,943,362 | 4,503,465 | 3,726,343 | 9,809,897 | 1,385,956 | 4,434,549 | ||||||||||||||||||||||||||||||
Beginning shares outstanding | 16,529,635 | 11,983,618 | 16,318,684 | 11,815,219 | 42,230,380 | 32,420,483 | 29,438,756 | 25,004,207 | ||||||||||||||||||||||||||||||
Ending shares outstanding | 18,873,654 | 16,529,635 | 18,262,046 | 16,318,684 | 45,956,723 | 42,230,380 | 30,824,712 | 29,438,756 | ||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||
Shares sold | 560,054 | 1,221,610 | 610,957 | 1,382,047 | 1,357,249 | 2,768,421 | 746,945 | 1,820,845 | ||||||||||||||||||||||||||||||
Dividends and distribution reinvested | — | 55,798 | — | 44,056 | — | 75,743 | — | 28,570 | ||||||||||||||||||||||||||||||
Shares repurchased | (202,980 | ) | (322,557 | ) | (291,737 | ) | (409,613 | ) | (693,391 | ) | (1,163,612 | ) | (607,703 | ) | (1,069,955 | ) | ||||||||||||||||||||||
Net increase | 357,074 | 954,851 | 319,220 | 1,016,490 | 663,858 | 1,680,552 | 139,242 | 779,460 | ||||||||||||||||||||||||||||||
Beginning shares outstanding | 3,022,111 | 2,067,260 | 3,560,056 | 2,543,566 | 9,485,382 | 7,804,830 | 7,802,346 | 7,022,886 | ||||||||||||||||||||||||||||||
Ending shares outstanding | 3,379,185 | 3,022,111 | 3,879,276 | 3,560,056 | 10,149,240 | 9,485,382 | 7,941,588 | 7,802,346 | ||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||
Shares sold | 3,933,076 | 7,994,971 | 2,411,514 | 5,134,378 | 4,380,291 | 9,843,078 | 2,342,838 | 5,151,759 | ||||||||||||||||||||||||||||||
Dividends and distribution reinvested | — | 265,270 | — | 142,867 | — | 217,096 | — | 67,782 | ||||||||||||||||||||||||||||||
Shares repurchased | (1,577,309 | ) | (4,677,810 | ) | (1,020,976 | ) | (2,262,176 | ) | (2,423,614 | ) | (6,101,604 | ) | (1,602,244 | ) | (3,665,505 | ) | ||||||||||||||||||||||
Net increase | 2,355,767 | 3,582,431 | 1,390,538 | 3,015,069 | 1,956,677 | 3,958,570 | 740,594 | 1,554,036 | ||||||||||||||||||||||||||||||
Beginning shares outstanding | 14,487,979 | 10,905,548 | 12,635,509 | 9,620,440 | 30,143,771 | 26,185,201 | 20,950,979 | 19,396,943 | ||||||||||||||||||||||||||||||
Ending shares outstanding | 16,843,746 | 14,487,979 | 14,026,047 | 12,635,509 | 32,100,448 | 30,143,771 | 21,691,573 | 20,950,979 | ||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||
Shares sold | 206,531 | 463,890 | 66,866 | 689,513 | 347,242 | 990,223 | 221,271 | 777,958 | ||||||||||||||||||||||||||||||
Dividends and distribution reinvested | — | 25,463 | — | 27,509 | — | 23,691 | — | 14,124 | ||||||||||||||||||||||||||||||
Shares repurchased | (173,127 | ) | (355,060 | ) | (109,623 | ) | (1,528,021 | ) | (255,622 | ) | (1,106,493 | ) | (212,870 | ) | (1,040,572 | ) | ||||||||||||||||||||||
Net increase (decrease) | 33,404 | 134,293 | (42,757 | ) | (810,999 | ) | 91,620 | (92,579 | ) | 8,401 | (248,490 | ) | ||||||||||||||||||||||||||
Beginning shares outstanding | 953,982 | 819,689 | 546,947 | 1,357,946 | 1,905,643 | 1,998,222 | 1,186,539 | 1,435,029 | ||||||||||||||||||||||||||||||
Ending shares outstanding | 987,386 | 953,982 | 504,190 | 546,947 | 1,997,263 | 1,905,643 | 1,194,940 | 1,186,539 |
C-12
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
PL Portfolio Optimization Aggressive Fund | PL Short Duration Income Fund (1) | PL Income Fund (2) | PL Strategic Income Fund (3) | |||||||||||||||||||||||||||||||||||
Six-Month Period Ended 9/30/2012 | Year Ended 3/31/2012 | Six-Month Period Ended 9/30/2012 | Period Ended 3/31/2012 | Six-Month Period Ended 9/30/2012 | Period Ended 3/31/2012 | Six-Month Period Ended 9/30/2012 | Period Ended 3/31/2012 | |||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||
Shares sold | 1,264,903 | 2,681,939 | 183,760 | 12,647,546 | 25,930,108 | 291,945 | ||||||||||||||||||||||||||||||||
Dividends and distribution reinvested | — | 47,941 | 271 | 272,437 | 224,292 | 1,267 | ||||||||||||||||||||||||||||||||
Shares repurchased | (1,057,081 | ) | (2,280,849 | ) | (704 | ) | (3,929,043 | ) | (3,339,586 | ) | (2,055 | ) | ||||||||||||||||||||||||||
Net increase | 207,822 | 449,031 | 183,327 | 8,990,940 | 22,814,814 | 291,157 | ||||||||||||||||||||||||||||||||
Beginning shares outstanding | 9,745,244 | 9,296,213 | — | 23,336,646 | 521,832 | — | ||||||||||||||||||||||||||||||||
Ending shares outstanding | 9,953,066 | 9,745,244 | 183,327 | 32,327,586 | 23,336,646 | 291,157 | ||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||
Shares sold | 195,919 | 435,514 | ||||||||||||||||||||||||||||||||||||
Dividends and distribution reinvested | — | — | ||||||||||||||||||||||||||||||||||||
Shares repurchased | (216,099 | ) | (382,304 | ) | ||||||||||||||||||||||||||||||||||
Net increase (decrease) | (20,180 | ) | 53,210 | |||||||||||||||||||||||||||||||||||
Beginning shares outstanding | 2,603,681 | 2,550,471 | ||||||||||||||||||||||||||||||||||||
Ending shares outstanding | 2,583,501 | 2,603,681 | ||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||
Shares sold | 737,918 | 2,135,369 | 158,555 | 4,778,439 | 7,455,154 | 169,066 | ||||||||||||||||||||||||||||||||
Dividends and distribution reinvested | — | — | 291 | 75,987 | 51,918 | 666 | ||||||||||||||||||||||||||||||||
Shares repurchased | (836,613 | ) | (2,178,209 | ) | (521 | ) | (322,197 | ) | (279,689 | ) | (949 | ) | ||||||||||||||||||||||||||
Net increase (decrease) | (98,695 | ) | (42,840 | ) | 158,325 | 4,532,229 | 7,227,383 | 168,783 | ||||||||||||||||||||||||||||||
Beginning shares outstanding | 6,240,042 | 6,282,882 | — | 7,227,383 | — | — | ||||||||||||||||||||||||||||||||
Ending shares outstanding | 6,141,347 | 6,240,042 | 158,325 | 11,759,612 | 7,227,383 | 168,783 | ||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||
Shares sold | 86,345 | 360,732 | ||||||||||||||||||||||||||||||||||||
Dividends and distribution reinvested | — | 1,331 | ||||||||||||||||||||||||||||||||||||
Shares repurchased | (123,528 | ) | (282,883 | ) | ||||||||||||||||||||||||||||||||||
Net increase (decrease) | (37,183 | ) | 79,180 | |||||||||||||||||||||||||||||||||||
Beginning shares outstanding | 533,714 | 454,534 | ||||||||||||||||||||||||||||||||||||
Ending shares outstanding | 496,531 | 533,714 | ||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||
Shares sold | 18,026 | 1,202,305 | 66,000 | 103,371 | 104,305 | 1,692,857 | ||||||||||||||||||||||||||||||||
Dividends and distribution reinvested | 15,279 | 5,874 | 1,823 | 91,641 | 45,982 | 18,364 | ||||||||||||||||||||||||||||||||
Shares repurchased | — | — | (23,804 | ) | (5,117,325 | ) | — | — | ||||||||||||||||||||||||||||||
Net increase (decrease) | 33,305 | 1,208,179 | 44,019 | (4,922,313 | ) | 150,287 | 1,711,221 | |||||||||||||||||||||||||||||||
Beginning shares outstanding | 1,208,179 | — | 121,696 | 5,044,009 | 1,711,221 | — | ||||||||||||||||||||||||||||||||
Ending shares outstanding | 1,241,484 | 1,208,179 | 165,715 | 121,696 | 1,861,508 | 1,711,221 | ||||||||||||||||||||||||||||||||
Advisor Class | ||||||||||||||||||||||||||||||||||||||
Shares sold | 8,197 | 575,201 | 20,660 | |||||||||||||||||||||||||||||||||||
Dividends and distribution reinvested | 14 | 2,698 | 93 | |||||||||||||||||||||||||||||||||||
Shares repurchased | — | (8,020 | ) | (478 | ) | |||||||||||||||||||||||||||||||||
Net increase | 8,211 | 569,879 | 20,275 | |||||||||||||||||||||||||||||||||||
Beginning shares outstanding | — | — | — | |||||||||||||||||||||||||||||||||||
Ending shares outstanding | 8,211 | 569,879 | 20,275 |
(1) | Class I shares of the PL Short Duration Income Fund commenced operations on December 19, 2011, and Class A, Class C and Advisor Class shares commenced operations on June 29, 2012. |
(2) | Class C shares of the PL Income Fund commenced operations on June 30, 2011 and Advisor Class shares commenced operations on June 29, 2012. |
(3) | Class I shares of the PL Strategic Income Fund commenced operations on December 19, 2011, and Class A, Class C and Advisor Class shares commenced operations on June 29, 2012. |
C-13
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
PL Floating Rate Income Fund (1) | PL High Income Fund (2) | PL Money Market Fund (3) | ||||||||||||||||||||||||||
Six-Month Period Ended 9/30/2012 | Period Ended 3/31/2012 | Six-Month Period Ended 9/30/2012 | Period Ended 3/31/2012 | Six-Month Period Ended 9/30/2012 | Year Ended 3/31/2012 | |||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Shares sold | 2,797,279 | 1,196,731 | 149,477 | 23,344,555 | 45,578,881 | |||||||||||||||||||||||
Dividends and distribution reinvested | 38,332 | 4,943 | 648 | — | — | |||||||||||||||||||||||
Shares repurchased | (302,585 | ) | (2,608 | ) | (721 | ) | (26,424,289 | ) | (51,953,637 | ) | ||||||||||||||||||
Net increase (decrease) | 2,533,026 | 1,199,066 | 149,404 | (3,079,734 | ) | (6,374,756 | ) | |||||||||||||||||||||
Beginning shares outstanding | 1,199,066 | — | — | 32,078,570 | 38,453,326 | |||||||||||||||||||||||
Ending shares outstanding | 3,732,092 | 1,199,066 | 149,404 | 28,998,836 | 32,078,570 | |||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||
Shares sold | 456,930 | |||||||||||||||||||||||||||
Dividends and distribution reinvested | — | |||||||||||||||||||||||||||
Shares repurchased | (125,274 | ) | ||||||||||||||||||||||||||
Net increase | 331,656 | |||||||||||||||||||||||||||
Beginning shares outstanding | — | |||||||||||||||||||||||||||
Ending shares outstanding | 331,656 | |||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Shares sold | 1,525,104 | 338,818 | 103,316 | 1,198,174 | ||||||||||||||||||||||||
Dividends and distribution reinvested | 12,145 | 719 | 360 | — | ||||||||||||||||||||||||
Shares repurchased | (20,968 | ) | (4,631 | ) | (478 | ) | (470,975 | ) | ||||||||||||||||||||
Net increase | 1,516,281 | 334,906 | 103,198 | 727,199 | ||||||||||||||||||||||||
Beginning shares outstanding | 334,906 | — | — | — | ||||||||||||||||||||||||
Ending shares outstanding | 1,851,187 | 334,906 | 103,198 | 727,199 | ||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Shares sold | 174,531 | 4,034,813 | 16,576 | 700,000 | ||||||||||||||||||||||||
Dividends and distribution reinvested | 86,147 | 119,051 | 24,471 | 11,256 | ||||||||||||||||||||||||
Shares repurchased | (789,741 | ) | (2,039 | ) | — | — | ||||||||||||||||||||||
Net increase (decrease) | (529,063 | ) | 4,151,825 | 41,047 | 711,256 | |||||||||||||||||||||||
Beginning shares outstanding | 4,151,825 | — | 711,256 | — | ||||||||||||||||||||||||
Ending shares outstanding | 3,622,762 | 4,151,825 | 752,303 | 711,256 | ||||||||||||||||||||||||
Advisor Class | ||||||||||||||||||||||||||||
Shares sold | 137,601 | 473 | ||||||||||||||||||||||||||
Dividends and distribution reinvested | 289 | 6 | ||||||||||||||||||||||||||
Shares repurchased | (497 | ) | — | |||||||||||||||||||||||||
Net increase | 137,393 | 479 | ||||||||||||||||||||||||||
Beginning shares outstanding | — | — | ||||||||||||||||||||||||||
Ending shares outstanding | 137,393 | 479 |
(1) | Class I shares of the PL Floating Rate Income Fund commenced operations on June 30, 2011, Class A and Class C shares commenced operations on December 30, 2011, and Advisor Class shares commenced operations on June 29, 2012. |
(2) | Class I shares of the PL High Income Fund commenced operations on December 19, 2011, and Class A, Class C and Advisor Class shares commenced operations on June 29, 2012. |
(3) | Class B and Class C shares of the PL Money Market Fund commenced operations on June 29, 2012. |
C-14
PACIFIC LIFE FUNDS
(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, 2012 to September 30, 2012.
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 fee waivers and expense reimbursements (See Note 6B in Notes to Financial Statements). The “Ending Account Value at 09/30/12” 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 04/01/12-09/30/12” 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, 2012 to September 30, 2012.
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 04/01/12-09/30/12.”
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 fee waivers and expense reimbursements (See Note 6B in Notes to Financial Statements). 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.
Beginning Account Value at 04/01/12 | Ending Account Value at 09/30/12 | Annualized Expense Ratio | Expenses Paid During the Period 04/01/12- 09/30/12 (1) | |||||||||||||
PL Portfolio Optimization Conservative Fund (2) | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class A | $1,000.00 | $1,036.10 | 0.60% | $3.06 | ||||||||||||
Class B | 1,000.00 | 1,032.90 | 1.35% | 6.88 | ||||||||||||
Class C | 1,000.00 | 1,032.90 | 1.35% | 6.88 | ||||||||||||
Class R | 1,000.00 | 1,035.40 | 0.85% | 4.34 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class A | $1,000.00 | $1,022.06 | 0.60% | $3.04 | ||||||||||||
Class B | 1,000.00 | 1,018.30 | 1.35% | 6.83 | ||||||||||||
Class C | 1,000.00 | 1,018.30 | 1.35% | 6.83 | ||||||||||||
Class R | 1,000.00 | 1,020.81 | 0.85% | 4.31 | ||||||||||||
PL Portfolio Optimization Moderate-Conservative Fund (2) | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class A | $1,000.00 | $1,026.80 | 0.60% | $3.05 | ||||||||||||
Class B | 1,000.00 | 1,023.60 | 1.35% | 6.85 | ||||||||||||
Class C | 1,000.00 | 1,022.70 | 1.35% | 6.85 | ||||||||||||
Class R | 1,000.00 | 1,025.20 | 0.85% | 4.32 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class A | $1,000.00 | $1,022.06 | 0.60% | $3.04 | ||||||||||||
Class B | 1,000.00 | 1,018.30 | 1.35% | 6.83 | ||||||||||||
Class C | 1,000.00 | 1,018.30 | 1.35% | 6.83 | ||||||||||||
Class R | 1,000.00 | 1,020.81 | 0.85% | 4.31 | ||||||||||||
PL Portfolio Optimization Moderate Fund (2) | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class A | $1,000.00 | $1,019.60 | 0.60% | $3.04 | ||||||||||||
Class B | 1,000.00 | 1,015.60 | 1.35% | 6.82 | ||||||||||||
Class C | 1,000.00 | 1,015.60 | 1.35% | 6.82 | ||||||||||||
Class R | 1,000.00 | 1,018.00 | 0.85% | 4.30 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class A | $1,000.00 | $1,022.06 | 0.60% | $3.04 | ||||||||||||
Class B | 1,000.00 | 1,018.30 | 1.35% | 6.83 | ||||||||||||
Class C | 1,000.00 | 1,018.30 | 1.35% | 6.83 | ||||||||||||
Class R | 1,000.00 | 1,020.81 | 0.85% | 4.31 | ||||||||||||
PL Portfolio Optimization Moderate-Aggressive Fund (2) | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class A | $1,000.00 | $1,008.10 | 0.60% | $3.02 | ||||||||||||
Class B | 1,000.00 | 1,004.10 | 1.35% | 6.78 | ||||||||||||
Class C | 1,000.00 | 1,004.90 | 1.35% | 6.79 | ||||||||||||
Class R | 1,000.00 | 1,006.50 | 0.85% | 4.28 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class A | $1,000.00 | $1,022.06 | 0.60% | $3.04 | ||||||||||||
Class B | 1,000.00 | 1,018.30 | 1.35% | 6.83 | ||||||||||||
Class C | 1,000.00 | 1,018.30 | 1.35% | 6.83 | ||||||||||||
Class R | 1,000.00 | 1,020.81 | 0.85% | 4.31 |
See explanation of references on page D-2 |
D-1
PACIFIC LIFE FUNDS
DISCLOSURE OF FUND EXPENSES (Continued)
(Unaudited)
Beginning Account Value at | Ending Account Value at | Annualized Ratio | Expenses Paid During the Period | |||||||||||||
PL Portfolio Optimization Aggressive Fund (2) | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class A | $1,000.00 | $997.60 | 0.60% | $3.00 | ||||||||||||
Class B | 1,000.00 | 993.50 | 1.35% | 6.75 | ||||||||||||
Class C | 1,000.00 | 993.50 | 1.35% | 6.75 | ||||||||||||
Class R | 1,000.00 | 996.80 | 0.85% | 4.25 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class A | $1,000.00 | $1,022.06 | 0.60% | $3.04 | ||||||||||||
Class B | 1,000.00 | 1,018.30 | 1.35% | 6.83 | ||||||||||||
Class C | 1,000.00 | 1,018.30 | 1.35% | 6.83 | ||||||||||||
Class R | 1,000.00 | 1,020.81 | 0.85% | 4.31 | ||||||||||||
PL Short Duration Income Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class A (3) | $1,000.00 | $1,025.60 | 0.85% | $2.22 | ||||||||||||
Class C (3) | 1,000.00 | 1,023.80 | 1.60% | 4.17 | ||||||||||||
Class I | 1,000.00 | 1,036.50 | 0.60% | 3.06 | ||||||||||||
Advisor Class (3) | 1,000.00 | 1,025.30 | 0.85% | 2.22 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class A (3) | $1,000.00 | $1,020.81 | 0.85% | $4.31 | ||||||||||||
Class C (3) | 1,000.00 | 1,017.05 | 1.60% | 8.09 | ||||||||||||
Class I | 1,000.00 | 1,022.06 | 0.60% | 3.04 | ||||||||||||
Advisor Class (3) | 1,000.00 | 1,020.81 | 0.85% | 4.31 | ||||||||||||
PL Income Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class A | $1,000.00 | $1,054.40 | 0.90% | $4.64 | ||||||||||||
Class C | 1,000.00 | 1,050.70 | 1.65% | 8.48 | ||||||||||||
Class I | 1,000.00 | 1,055.60 | 0.65% | 3.35 | ||||||||||||
Advisor Class (3) | 1,000.00 | 1,031.90 | 0.90% | 2.35 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class A | $1,000.00 | $1,020.56 | 0.90% | $4.56 | ||||||||||||
Class C | 1,000.00 | 1,016.80 | 1.65% | 8.34 | ||||||||||||
Class I | 1,000.00 | 1,021.81 | 0.65% | 3.29 | ||||||||||||
Advisor Class (3) | 1,000.00 | 1,020.56 | 0.90% | 4.56 | ||||||||||||
PL Strategic Income Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class A (3) | $1,000.00 | $1,053.10 | 1.05% | $2.78 | ||||||||||||
Class C (3) | 1,000.00 | 1,050.90 | 1.80% | 4.75 | ||||||||||||
Class I | 1,000.00 | 1,077.00 | 0.80% | 4.17 | ||||||||||||
Advisor Class (3) | 1,000.00 | 1,052.80 | 1.05% | 2.78 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class A (3) | $1,000.00 | $1,019.80 | 1.05% | $5.32 | ||||||||||||
Class C (3) | 1,000.00 | 1,016.04 | 1.80% | 9.10 | ||||||||||||
Class I | 1,000.00 | 1,021.06 | 0.80% | 4.05 | ||||||||||||
Advisor Class (3) | 1,000.00 | 1,019.80 | 1.05% | 5.32 | ||||||||||||
PL Floating Rate Income Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class A | $1,000.00 | $1,043.80 | 1.05% | $5.38 | ||||||||||||
Class C | 1,000.00 | 1,040.50 | 1.80% | 9.21 | ||||||||||||
Class I | 1,000.00 | 1,045.80 | 0.80% | 4.10 | ||||||||||||
Advisor Class (3) | 1,000.00 | 1,030.90 | 1.05% | 2.75 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class A | $1,000.00 | $1,019.80 | 1.05% | $5.32 | ||||||||||||
Class C | 1,000.00 | 1,016.04 | 1.80% | 9.10 | ||||||||||||
Class I | 1,000.00 | 1,021.06 | 0.80% | 4.05 | ||||||||||||
Advisor Class (3) | 1,000.00 | 1,019.80 | 1.05% | 5.32 |
Beginning Account Value at | Ending Account Value at | Annualized Ratio | Expenses Paid During the Period | |||||||||||||
PL High Income Fund |
| |||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class A (3) | $1,000.00 | $1,054.90 | 1.05% | $2.78 | ||||||||||||
Class C (3) | 1,000.00 | 1,053.20 | 1.80% | 4.76 | ||||||||||||
Class I | 1,000.00 | 1,067.30 | 0.80% | 4.15 | ||||||||||||
Advisor Class (3) | 1,000.00 | 1,055.20 | 1.05% | 2.78 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class A (3) | $1,000.00 | $1,019.80 | 1.05% | $5.32 | ||||||||||||
Class C (3) | 1,000.00 | 1,016.04 | 1.80% | 9.10 | ||||||||||||
Class I | 1,000.00 | 1,021.06 | 0.80% | 4.05 | ||||||||||||
Advisor Class (3) | 1,000.00 | 1,019.80 | 1.05% | 5.32 | ||||||||||||
PL Money Market Fund |
| |||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class A | $1,000.00 | $1,000.00 | 0.12% | $0.60 | ||||||||||||
Class B (3) | 1,000.00 | 1,000.00 | 0.12% | 0.31 | ||||||||||||
Class C (3) | 1,000.00 | 1,000.00 | 0.12% | 0.31 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class A | $1,000.00 | $1,024.47 | 0.12% | $0.61 | ||||||||||||
Class B (3) | 1,000.00 | 1,024.47 | 0.12% | 0.61 | ||||||||||||
Class C (3) | 1,000.00 | 1,024.47 | 0.12% | 0.61 |
(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 or applicable period, then divided by 365 days. |
(2) | The annualized expense ratios for the Portfolio Optimization Funds do not include expenses of the PL Underlying Funds (see Note 1 in Notes to Financial Statements) in which the Portfolio Optimization Funds invest. |
(3) | This share class commenced operations on June 29, 2012. The actual return and expenses paid during the period by this share class was for the period June 29, 2012 to September 30, 2012, instead of the entire six-month period. The hypothetical return and expenses paid during the period are based on the entire six-month period for comparison purposes. |
D-2
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 Website at 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 www.pacificlife.com/pacificlifefunds.htm. The SEC may charge you a fee for this information.
Availability of Proxy Voting Record
By August 31 of each year, the Trust files information regarding how portfolio managers voted proxies relating to fund securities during the most recent twelve-month period ended June 30. Such information is available after filing on the Trust’s’ Website and on the SEC’s Website noted below.
Information Relating to Investments Held by the Pacific Life Funds
For complete descriptions of the various securities and other instruments held by the Trust and their risks, please see the Trust’s Prospectus and Statement of Additional Information (“SAI”). For a description of bond ratings, please see the Trust’s SAI. The Prospectus and SAI are available as noted below.
Availability of Proxy Voting Policies
A description of the Proxy Voting Policies and Procedures that the Trust uses to determine how to vote proxies relating to fund securities is described in the Trust’s SAI.
How to obtain Information
The Trust’s Prospectus, SAI (including Proxy Voting Policies) and the PL Underlying Funds’ annual and semi-annual reports are available:
• | On the Trust’s Website at www.pacificlife.com/pacificlifefunds.htm |
• | On the SEC’s Website at www.sec.gov |
• | Upon request by calling, without charge, 1-800-722-2333, 7 a.m. through 5 p.m. Pacific Time |
D-3
PL Underlying Funds
Semi-Annual Report
As of September 30, 2012
PACIFIC LIFE FUNDS
A-1 | ||
Financial Statements: | ||
B-1 | ||
B-4 | ||
B-7 | ||
B-13 | ||
B-14 | ||
C-1 | ||
D-1 | ||
Approval of Investment Advisory Agreement and Fund Management Agreements | D-3 | |
D-5 |
PACIFIC LIFE FUNDS
PL FLOATING RATE LOAN FUND
September 30, 2012 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS - 0.9% | ||||||||
Consumer Discretionary - 0.9% | ||||||||
Metro-Goldwyn-Mayer Studios Inc ‘A’ * ¯ | 27,061 | $860,878 | ||||||
|
| |||||||
Total Common Stocks | 860,878 | |||||||
|
| |||||||
Principal | ||||||||
SENIOR LOAN NOTES - 94.1% | ||||||||
Consumer Discretionary - 34.3% | ||||||||
99 Cents Only Stores Tranche B-1 | $993,756 | 1,006,178 | ||||||
Advantage Sales & Marketing Inc (1st Lien) | 665,656 | 667,487 | ||||||
Affinion Group Inc Tranche B | 1,075,713 | 991,000 | ||||||
Allison Transmission Inc Term B-3 | 498,750 | 501,088 | ||||||
AMC Entertainment Inc Term B-3 | 992,500 | 1,000,043 | ||||||
AMC Networks Inc Term B | 992,469 | 993,295 | ||||||
Ascend Learning LLC (1st Lien) | 500,000 | 501,250 | ||||||
Asurion LLC (1st Lien) | 1,067,738 | 1,074,879 | ||||||
Brickman Group Holdings Inc Tranche B-1 | 250,000 | 252,500 | ||||||
Burger King Corp Term B | 225,000 | 225,703 | ||||||
Caesars Entertainment Operating Co Inc | 600,000 | 546,857 | ||||||
Catalina Marketing Corp | 924,569 | 921,102 | ||||||
Cequel Communications LLC | 548,625 | 551,540 | ||||||
Charter Communications Operating LLC | 380,889 | 381,973 | ||||||
Term D | 99,500 | 100,159 | ||||||
Chrysler Group LLC Term B | 1,036,875 | 1,059,268 | ||||||
Clear Channel Communication Inc Tranche B | 492,133 | 403,549 | ||||||
Cumulus Media Holdings Inc Term B (1st Lien) | 495,849 | 499,302 | ||||||
Education Management LLC | 497,293 | 418,503 | ||||||
Tranche C-3 | 298,376 | 264,659 | ||||||
Endurance Business Media Inc | 498,750 | 502,647 | ||||||
Federal-Mogul Corp | 641,943 | 627,729 | ||||||
Tranche C | 327,522 | 320,270 | ||||||
FoxCo Acquisition Sub LLC (Initial) | 150,000 | 151,500 |
Principal | Value | |||||||
General Nutrition Centers Inc | $1,124,489 | $1,126,497 | ||||||
Genpact Ltd | 175,000 | 175,766 | ||||||
Getty Images Inc | 451,610 | 452,657 | ||||||
Incremental Term B-1 | 46,957 | 47,049 | ||||||
Go Daddy Operating Co LLC Tranche B-1 | 470,994 | 469,668 | ||||||
Harbor Freight Tools USA Inc (Initial) | 150,000 | 150,844 | ||||||
HHI Holdings LLC | 992,451 | 992,451 | ||||||
Interactive Data Corp Term B | 479,027 | 482,318 | ||||||
J Crew Group Inc | 497,481 | 498,281 | ||||||
Jo-Ann Stores Inc | 981,520 | 985,508 | ||||||
Landry’s Inc Term B | 474,563 | 481,800 | ||||||
Language Line LLC Tranche B | 611,269 | 607,958 | ||||||
Laureate Education Inc (Extended) | 488,760 | 483,261 | ||||||
Michaels Stores Inc Term B-3 | 463,828 | 468,301 | ||||||
Mission Broadcasting Inc Term B | 984,929 | 987,392 | ||||||
National Bedding Co LLC (Extended) | 488,655 | 488,349 | ||||||
National Vision Inc | 74,813 | 75,187 | ||||||
Ollie’s Bargain Outlet Term B | 250,000 | 252,500 | ||||||
Orbitz Worldwide Inc | 447,166 | 435,055 | ||||||
Petco Animal Supplies Inc | 490,000 | 493,113 | ||||||
Pilot Travel Centers LLC Tranche B | 150,000 | 150,938 | ||||||
(Initial) | 412,832 | 414,896 | ||||||
Pinnacle Entertainment Inc | 74,625 | 75,138 | ||||||
RGIS Services LLC Tranche C | 199,500 | 199,251 | ||||||
Sabre Inc (Non-Extended Initial) | 227,770 | 227,343 | ||||||
SeaWorld Parks & Entertainment Inc Term B | 291,896 | 293,325 | ||||||
Serta International Term B | 200,000 | 199,482 | ||||||
Six Flags Theme Parks Inc Tranche B | 750,000 | 755,622 | ||||||
SymphonyIRI Group Inc | 495,000 | 495,000 | ||||||
The Goodyear Tire & Rubber Co (2nd Lien) | 925,000 | 934,636 | ||||||
The Neiman Marcus Group Inc | 825,000 | 830,953 | ||||||
Travelport LLC | 494,329 | 472,290 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-1
PACIFIC LIFE FUNDS
PL FLOATING RATE LOAN FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | Value | |||||||
TWCC Holding Corp | $734,303 | $739,963 | ||||||
Univision Communications Inc | 879,400 | 872,682 | ||||||
Visant Corp Tranche B | 511,391 | 495,227 | ||||||
VWR Funding Inc | 358,252 | 358,700 | ||||||
(Extended) | 358,252 | 360,267 | ||||||
Weight Watchers International Inc Term F | 174,563 | 174,781 | ||||||
Wendy’s International Inc | 1,000,000 | 1,010,156 | ||||||
Zuffa LLC (Initial) | 979,328 | 962,190 | ||||||
|
| |||||||
34,139,276 | ||||||||
|
| |||||||
Consumer Staples - 6.5% | ||||||||
Blue Buffalo Company Ltd | 125,000 | 125,234 | ||||||
Term B | 375,000 | 375,703 | ||||||
Clearwater Seafoods Ltd Partnership Term B | 500,000 | 501,250 | ||||||
Del Monte Foods Co (Initial) | 475,757 | 475,956 | ||||||
Dole Food Co Inc | 354,872 | 356,573 | ||||||
Tranche C-2 | 635,035 | 638,078 | ||||||
JBS USA LLC (Initial) | 987,500 | 985,031 | ||||||
KIK Custom Products Inc (2nd Lien) | 500,000 | 385,500 | ||||||
Pierre Foods Inc (1st Lien) | 492,481 | 495,303 | ||||||
Reynolds Group Holdings Inc | 1,000,000 | 1,005,000 | ||||||
Rite Aid Corp | 941,786 | 935,546 | ||||||
Tranche 5 | 193,402 | 193,160 | ||||||
|
| |||||||
6,472,334 | ||||||||
|
| |||||||
Energy - 3.6% | ||||||||
Arch Coal Inc | 324,188 | 327,226 | ||||||
Buffalo Gulf Coast Terminals LLC | 497,487 | 507,437 | ||||||
Citgo Petroleum Corp Term B | 158,036 | 160,406 | ||||||
Crestwood Holdings LLC | 146,138 | 148,512 | ||||||
Energy Transfer Equity LP | 325,000 | 325,293 | ||||||
Frac Tech Services Term B | 273,474 | 263,988 | ||||||
Obsidian Natural Gas Trust | 890,777 | 895,230 | ||||||
Patriot Coal Corp | 100,000 | 100,875 |
Principal | Value | |||||||
Samson Investment Co | $100,000 | $100,771 | ||||||
Sheridan Production Partners I LLC | 300,000 | 297,000 | ||||||
Tervita Corp Term A | 496,250 | 497,904 | ||||||
|
| |||||||
3,624,642 | ||||||||
|
| |||||||
Financials - 3.7% | ||||||||
American Capital Ltd | 150,000 | 151,500 | ||||||
Amwins Group LLC (1st Lien) | 149,625 | 150,186 | ||||||
Citco III Ltd | 493,750 | 497,453 | ||||||
CNO Financial Group Term B2 | 125,000 | 123,750 | ||||||
First Data Corp | 223,620 | 214,155 | ||||||
Term B | 150,000 | 147,625 | ||||||
Term B-1 (Non-Extended) | 12,034 | 11,994 | ||||||
HUB International Ltd (Initial Extended) | 953,683 | 963,220 | ||||||
LPL Holdings Inc | 97,500 | 96,281 | ||||||
Tranche B (Initial) | 298,500 | 299,806 | ||||||
Nuveen Investments Inc (1st Lien) | 883,260 | 883,115 | ||||||
Shield Finance Co SARL Term B | 149,625 | 150,560 | ||||||
|
| |||||||
3,689,645 | ||||||||
|
| |||||||
Health Care - 15.0% | ||||||||
Alere Inc Term B | 794,000 | 798,590 | ||||||
Alliance Imaging Inc (Initial) | 456,742 | 445,323 | ||||||
Aptalis Pharma Inc Term B-1 | 492,378 | 492,378 | ||||||
Aveta Inc | 240,625 | 243,633 | ||||||
Term NAMM | 240,625 | 243,633 | ||||||
Biomet Inc Term B | 976,986 | 978,589 | ||||||
CHS / Community Health Systems Inc | 638,054 | 641,821 | ||||||
DaVita Inc Term B2 | 375,000 | 376,406 | ||||||
DJO Finance LLC | 270,822 | 271,245 | ||||||
Tranche B-3 | 174,125 | 174,996 | ||||||
Drumm Investors LLC | 497,420 | 481,254 | ||||||
Emergency Medical Services Corp | 480,352 | 483,454 | ||||||
Grifols Inc Tranche B | 764,136 | 771,968 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-2
PACIFIC LIFE FUNDS
PL FLOATING RATE LOAN FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | Value | |||||||
HCA Inc Tranche B-3 | $581,925 | $583,743 | ||||||
Health Management Associates Inc Term B | 1,166,188 | 1,176,554 | ||||||
Hologic Inc Tranche B | 225,000 | 227,925 | ||||||
IMS Health Inc Tranche B | 487,509 | 490,251 | ||||||
InVentiv Health Inc (Consolidated) | 488,812 | 474,148 | ||||||
Kindred Healthcare Inc | 471,301 | 465,551 | ||||||
MultiPlan Inc Term B | 595,926 | 598,781 | ||||||
One Call Medical Inc (Initial) | 100,000 | 100,000 | ||||||
Par Pharmaceutical Cos Inc Term B | 125,000 | 124,922 | ||||||
Pharmaceutical Product Development Inc Term B | 992,500 | 1,002,839 | ||||||
Quintiles Transnational Holdings Inc Term B | 420,750 | 423,800 | ||||||
RPI Finance Trust | 419,013 | 420,585 | ||||||
Select Medical Corp Term A | 236,927 | 236,483 | ||||||
The TriZetto Group Inc | 496,231 | 494,836 | ||||||
Valeant Pharmaceuticals International Inc | 225,000 | 223,875 | ||||||
Series A Tranche B | 125,000 | 126,016 | ||||||
Series B Tranche B | 375,000 | 377,297 | ||||||
Warner Chilcott Co LLC | 529,386 | 530,841 | ||||||
Term B-2 | 191,840 | 192,367 | ||||||
WC Luxco SARL Term B-3 | 263,780 | 264,505 | ||||||
|
| |||||||
14,938,609 | ||||||||
|
| |||||||
Industrials - 8.7% | ||||||||
Advanced Disposal Services Term B | 225,000 | 226,875 | ||||||
Alpha Topco Ltd Facility B | 273,625 | 276,675 | ||||||
BakerCorp International Inc | 500,000 | 502,250 | ||||||
Bombardier Recreational Products Inc Term B-2 | 492,621 | 496,316 | ||||||
Colfax Corp Term B (Facility) | 645,125 | 650,165 | ||||||
Delos Aircraft Inc | 100,000 | 101,125 | ||||||
Flying Fortress Inc | 425,000 | 430,844 | ||||||
Goodman Global Inc (1st Lien Initial) | 139,625 | 140,248 | ||||||
Grede LLC Term B | 500,000 | 500,938 | ||||||
Husky Injection Molding Systems Ltd | 465,532 | 470,042 | ||||||
John Maneely Co | 992,455 | 999,278 | ||||||
KAR Auction Services Inc | 320,938 | 323,010 |
Principal | Value | |||||||
Metaldyne LLC Term B | $469,360 | $476,987 | ||||||
Monitronics International Inc | 124,375 | 126,007 | ||||||
Pelican Products Inc (1st Lien) | 249,375 | 249,375 | ||||||
Rexnord LLC Term B | 1,017,313 | 1,023,353 | ||||||
Sensata Technologies Finance Co LLC | 345,625 | 347,977 | ||||||
Swift Transportation Co LLC | 423,214 | 425,330 | ||||||
Tranche B-2 | 252,308 | 253,991 | ||||||
Tank Holding Corp (Initial) | 147,718 | 148,088 | ||||||
U.S. Security Associates Holdings Inc Term B | 496,242 | 500,584 | ||||||
|
| |||||||
8,669,458 | ||||||||
|
| |||||||
Information Technology - 8.3% | ||||||||
Aeroflex Inc Tranche B | 445,760 | 445,482 | ||||||
Aspect Software Inc Tranche B | 500,000 | 493,750 | ||||||
Booz Allen Hamilton Inc Tranche B (Initial) | 100,000 | 100,698 | ||||||
Dealer Computer Services Inc Tranche B | 168,839 | 169,754 | ||||||
DG Fastchannel Inc (Initial) | 470,593 | 458,828 | ||||||
Eagle Parent Inc Term B | 470,055 | 473,698 | ||||||
Expert Global Solutions Inc Term B | 274,313 | 276,827 | ||||||
Freescale Semiconductor Inc Tranche B-1 | 983,911 | 963,741 | ||||||
Infor Inc Tranche B | 698,250 | 706,127 | ||||||
Kronos Inc Tranche B-1 (2nd Lien) | 500,000 | 510,625 | ||||||
Novell Inc (1st Lien) | 441,563 | 445,702 | ||||||
NXP BV | 174,125 | 176,447 | ||||||
Tranche A-2 | 74,250 | 75,704 | ||||||
Rocket Software Inc Term B | 496,250 | 497,491 | ||||||
Rovi Solutions Corp Tranche B-2 | 99,500 | 96,266 | ||||||
Skillsoft Corp Term B | 488,762 | 488,762 | ||||||
Sophia LP (Initial) | 147,157 | 149,254 | ||||||
SSI Investments II Ltd | 488,762 | 491,741 | ||||||
SunGard Data Systems Inc | 512,043 | 513,963 | ||||||
Tranche C | 174,571 | 175,389 | ||||||
Vantiv Tranche B | 49,750 | 49,968 | ||||||
Web.com Group Inc (1st Lien) | 474,583 | 478,884 | ||||||
|
| |||||||
8,239,101 | ||||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-3
PACIFIC LIFE FUNDS
PL FLOATING RATE LOAN FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | Value | |||||||
Materials - 6.9% | ||||||||
Arizona Chemicals | $118,091 | $120,699 | ||||||
BWAY Holding Co | 418,740 | 420,659 | ||||||
Term C | 42,201 | 42,395 | ||||||
Essar Steel Algoma Inc | | 375,000 125,000 | | | 378,750 126,250 | | ||
Fairmount Minerals Ltd Tranche B | 394,403 | 394,107 | ||||||
Hexion Specialty Chemicals Inc | 678,837 | 675,159 | ||||||
Tranche C-2B | 289,953 | 288,383 | ||||||
Ineos US Finance LLC | 970,125 | 981,385 | ||||||
Momentive Performance Material GmbH | 49,750 | 48,257 | ||||||
Noranda Aluminum Term B | 124,375 | 125,969 | ||||||
Novelis Inc (Canada) | 982,500 | 985,669 | ||||||
Trinseo Materials Operating SCA | 442,500 | 425,393 | ||||||
Tronox Pigments BV (Netherlands) | 21,375 | 21,589 | ||||||
Term B | 78,375 | 79,159 | ||||||
Univar Inc Term B | 835,125 | 833,233 | ||||||
Walter Energy Inc Term B | 920,979 | 918,868 | ||||||
|
| |||||||
6,865,924 | ||||||||
|
| |||||||
Telecommunication Services - 3.8% | ||||||||
Atlantic Broadband Finance (1st Lien) | 174,563 | 175,685 | ||||||
Greeneden U.S. Holdings II LLC | 49,750 | 50,330 | ||||||
Intelsat Jackson Holdings SA Tranche B | 928,150 | 932,733 | ||||||
MetroPCS Wireless Inc Tranche B-3 | 615,186 | 616,944 | ||||||
SBA Communications Corp | 74,063 | 74,225 | ||||||
Syniverse Holdings Inc (Initial) | 249,375 | 250,310 | ||||||
Telesat Canada Term B | 523,688 | 525,651 | ||||||
UPC Financing Partnership (Facility X) | 1,000,000 | 997,188 | ||||||
West Corp Term B-6 | 124,688 | 126,012 | ||||||
|
| |||||||
3,749,078 | ||||||||
|
| |||||||
Utilities - 3.3% | ||||||||
Calpine Corp | 1,133,000 | 1,137,760 | ||||||
Dynergy Power LLC | 496,241 | 515,470 | ||||||
LSP Madison Funding LLC | | 350,000 149,625 | | | 353,500 151,121 | |
Principal | Value | |||||||
NRG Energy Inc Term B | $518,438 | $521,872 | ||||||
Texas Competitive Electric Holdings Co LLC | 500,000 | 345,703 | ||||||
The AES Corp (Initial) | 295,500 | 297,505 | ||||||
|
| |||||||
3,322,931 | ||||||||
|
| |||||||
Total Senior Loan Notes | 93,710,998 | |||||||
|
| |||||||
Shares | ||||||||
SHORT-TERM INVESTMENT - 5.6% | ||||||||
Money Market Fund - 5.6% | ||||||||
BlackRock Liquidity Funds Treasury | 5,597,487 | 5,597,487 | ||||||
|
| |||||||
Total Short-Term Investment | 5,597,487 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 100.6% | 100,169,363 | |||||||
OTHER ASSETS & LIABILITIES, NET - (0.6%) |
| (601,927 | ) | |||||
|
| |||||||
NET ASSETS - 100.0% | $99,567,436 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Consumer Discretionary | 35.2% | |||
Health Care | 15.0% | |||
Industrials | 8.7% | |||
Information Technology | 8.3% | |||
Materials | 6.9% | |||
Consumer Staples | 6.5% | |||
Short-Term Investment | 5.6% | |||
Telecommunication Services | 3.8% | |||
Financials | 3.7% | |||
Energy | 3.6% | |||
Utilities | 3.3% | |||
|
| |||
100.6% | ||||
Other Assets & Liabilities, Net | (0.6% | ) | ||
|
| |||
100.0% | ||||
|
|
(b) | As of September 30, 2012, the fund’s Standard & Poor’s quality ratings as a percentage of total fixed income investments were as follows: |
BBB | 4.3% | |||
BB | 50.1% | |||
B | 42.1% | |||
CCC | 1.9% | |||
Not Rated | 1.6% | |||
|
| |||
100.0% | ||||
|
|
(c) | Restricted securities as of September 30, 2012 were as follows: |
Issuer and Acquisition Date | Cost | Value | Value as a % of Net Assets | |||||||||
Metro-Goldwyn-Mayer | $671,651 | $860,878 | 0.9% | |||||||||
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-4
PACIFIC LIFE FUNDS
PL FLOATING RATE LOAN FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
(d) | Fair Value Measurements |
The following is a summary of the fund’s investments as categorized under the three-tier hierarchy of inputs used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Common Stocks (1) | $860,878 | $— | $860,878 | $— | |||||||||||||
Senior Loan Notes | 93,710,998 | — | 93,710,998 | — | ||||||||||||||
Short-Term Investment | 5,597,487 | 5,597,487 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $100,169,363 | $5,597,487 | $94,571,876 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
(1) | For equity investments categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-5
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments
September 30, 2012 (Unaudited)
Principal | Value | |||||||
CORPORATE BONDS & NOTES - 3.6% |
| |||||||
Energy - 0.1% |
| |||||||
Petroleos Mexicanos (Mexico) | $100,000 | $117,750 | ||||||
|
| |||||||
Financials - 2.9% | ||||||||
Ally Financial Inc | 700,000 | 707,826 | ||||||
American International Group Inc | 200,000 | 245,750 | ||||||
Credit Agricole Home Loan SFH (France) | 400,000 | 396,265 | ||||||
The Goldman Sachs Group Inc | EUR 1,500,000 | 1,926,586 | ||||||
Volkswagen International Finance NV (Netherlands) | $1,900,000 | 1,900,000 | ||||||
|
| |||||||
5,176,427 | ||||||||
|
| |||||||
Health Care - 0.4% | ||||||||
HCA Inc | 600,000 | 675,000 | ||||||
|
| |||||||
Industrials - 0.2% | ||||||||
International Lease Finance Corp | ||||||||
6.500% due 09/01/14 ~ | 100,000 | 108,000 | ||||||
6.750% due 09/01/16 ~ | 100,000 | 112,875 | ||||||
7.125% due 09/01/18 ~ | 200,000 | 234,000 | ||||||
|
| |||||||
454,875 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes | 6,424,052 | |||||||
|
| |||||||
MORTGAGE-BACKED SECURITIES - 3.2% |
| |||||||
Collateralized Mortgage Obligations - Commercial - 0.9% |
| |||||||
Banc of America Large Loan Inc | 925,670 | 926,867 | ||||||
European Loan Conduit (Ireland) | EUR 404,854 | 478,637 | ||||||
JPMorgan Chase Commercial Mortgage Securities Corp | $110,000 | 126,322 | ||||||
Morgan Stanley Capital I Trust | 100,000 | 118,235 | ||||||
UBS Commercial Mortgage Trust | 45,652 | 44,000 | ||||||
|
| |||||||
1,694,061 | ||||||||
|
| |||||||
Collateralized Mortgage Obligations - Residential - 2.3% |
| |||||||
Bear Stearns Adjustable Rate Mortgage Trust | ||||||||
2.240% due 08/25/35 " § | 23,575 | 24,005 | ||||||
2.250% due 08/25/35 " § | 44,103 | 43,277 | ||||||
2.570% due 03/25/35 " § | 82,240 | 83,256 | ||||||
3.078% due 03/25/35 " § | 24,148 | 24,351 | ||||||
Citigroup Mortgage Loan Trust Inc | ||||||||
2.230% due 09/25/35 " § | 39,376 | 39,135 | ||||||
2.340% due 09/25/35 " § | 33,521 | 32,546 | ||||||
Countrywide Home Loan Mortgage Pass-Through Trust | 27,719 | 23,716 | ||||||
4.262% due 01/19/34 " § | 100,911 | 102,633 | ||||||
Fannie Mae | ||||||||
0.567% due 07/25/37 " § | 509,157 | 511,884 | ||||||
0.597% due 07/25/37 " § | 422,176 | 424,729 |
Principal | Value | |||||||
0.657% due 05/25/36 " § | $373,069 | $375,742 | ||||||
0.662% due 02/25/37 " § | 105,616 | 106,240 | ||||||
0.897% due 02/25/41 " § | 600,109 | 604,768 | ||||||
GSR Mortgage Loan Trust | 66,529 | 67,146 | ||||||
JP Morgan Mortgage Trust | 252,213 | 257,231 | ||||||
MLCC Mortgage Investors Inc | 190,331 | 196,723 | ||||||
New York Mortgage Trust Inc | 617,899 | 515,276 | ||||||
Residential Accredit Loans Inc | 146,705 | 64,583 | ||||||
Structured Asset Mortgage Investments Inc | 134,733 | 78,320 | ||||||
Wells Fargo Mortgage Backed Securities Trust | 459,753 | 455,865 | ||||||
|
| |||||||
4,031,426 | ||||||||
|
| |||||||
Total Mortgage-Backed Securities | 5,725,487 | |||||||
|
| |||||||
ASSET-BACKED SECURITIES - 3.5% | ||||||||
AMMC V Ltd CLO (Cayman) | 155,964 | 152,710 | ||||||
ARES VIR Ltd CLO (Cayman) | 400,515 | 393,693 | ||||||
Asset Backed Funding Certificates | 342,453 | 339,636 | ||||||
Freddie Mac Structured Pass-Through Securities | 2,326 | 2,152 | ||||||
Harvest SA CLO (Luxembourg) | EUR 111,212 | 140,728 | ||||||
Hillmark Funding CDO (Cayman) | $1,100,000 | 1,064,271 | ||||||
Katonah VI Ltd CLO (Cayman) | 166,792 | 165,804 | ||||||
Park Place Securities Inc | 239,986 | 238,921 | ||||||
Plymouth Rock Ltd Inc CLO (Cayman) | 343,201 | 343,448 | ||||||
SLM Student Loan Trust | ||||||||
0.512% due 12/15/23 " § | EUR 1,755,638 | 2,177,345 | ||||||
0.522% due 09/15/21 " § ~ | 706,038 | 894,426 | ||||||
Wood Street BV CLO (Netherlands) | 188,869 | 235,190 | ||||||
|
| |||||||
Total Asset-Backed Securities | 6,148,324 | |||||||
|
| |||||||
U.S. TREASURY OBLIGATIONS - 92.2% |
| |||||||
U.S. Treasury Inflation Protected Securities - 92.2% |
| |||||||
0.125% due 04/15/17 ^ | $6,556,810 | 7,067,015 | ||||||
0.125% due 01/15/22 ^ ‡ | 23,742,625 | 25,922,678 | ||||||
0.125% due 07/15/22 ^ ‡ | 18,235,746 | 19,946,077 | ||||||
0.500% due 04/15/15 ^ | 4,334,684 | 4,557,175 | ||||||
0.625% due 07/15/21 ^ ‡ | 14,485,980 | 16,588,707 | ||||||
0.750% due 02/15/42 ^ | 709,779 | 773,659 | ||||||
1.250% due 04/15/14 ^ | 2,706,525 | 2,815,633 | ||||||
1.625% due 01/15/15 ^ | 10,319,226 | 11,065,760 | ||||||
1.750% due 01/15/28 ^ | 9,733,485 | 12,631,474 | ||||||
1.875% due 07/15/13 ^ | 9,106,531 | 9,380,437 | ||||||
1.875% due 07/15/15 ^ | 706,752 | 777,814 | ||||||
2.000% due 01/15/14 ^ | 557,991 | 583,057 | ||||||
2.000% due 07/15/14 ^ | 5,591,254 | 5,966,919 | ||||||
2.000% due 01/15/16 ^ | 5,656,413 | 6,344,024 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-6
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | Value | |||||||
2.375% due 01/15/25 ^ | $1,458,588 | $1,983,225 | ||||||
2.500% due 01/15/29 ^ | 6,723,045 | 9,635,488 | ||||||
2.625% due 07/15/17 ^ | 2,321,487 | 2,808,092 | ||||||
3.375% due 04/15/32 ^ | 193,620 | 322,105 | ||||||
3.625% due 04/15/28 ^ | 382,474 | 607,954 | ||||||
3.875% due 04/15/29 ^ | 14,146,157 | 23,546,716 | ||||||
|
| |||||||
163,324,009 | ||||||||
|
| |||||||
Total U.S. Treasury Obligations | 163,324,009 | |||||||
|
| |||||||
FOREIGN GOVERNMENT BONDS & NOTES - 7.7% |
| |||||||
Australian Government Index-Linked Bond (Australia) | AUD 700,000 | 1,420,999 | ||||||
Canada Housing Trust No. 1 (Canada) | CAD 1,200,000 | 1,261,519 | ||||||
Canadian Government Bond (Canada) | 105,107 | 141,500 | ||||||
Canadian Government Index-Linked Bond (Canada) | 353,922 | 590,558 | ||||||
4.250% due 12/01/21 ^ | 1,462,540 | 2,121,345 | ||||||
Instituto De Credito Oficial (Spain) | EUR 1,600,000 | 2,000,976 | ||||||
Italy Buoni Poliennali Del Tesoro (Italy) | 785,257 | 999,176 | ||||||
2.100% due 09/15/17 ^ | 625,169 | 773,969 | ||||||
2.350% due 09/15/19 ^ | 108,266 | 132,309 | ||||||
New South Wales Treasury Index-Linked Corp (Australia) | AUD 200,000 | 260,877 | ||||||
2.750% due 11/20/25 ^ | 1,800,000 | 2,468,261 | ||||||
United Kingdom Gilt Inflation-Linked (United Kingdom) | GBP 374,898 | 697,261 | ||||||
1.875% due 11/22/22 ^ | 117,715 | 242,161 | ||||||
2.500% due 07/26/16 ^ ~ | 100,000 | 554,221 | ||||||
|
| |||||||
Total Foreign Government Bonds & Notes | 13,665,132 | |||||||
|
| |||||||
MUNICIPAL BONDS - 0.1% | ||||||||
Tobacco Settlement Finance Authority of WV ‘A’ | $95,000 | 72,745 | ||||||
Tobacco Settlement Financing Corp of RI ‘A’ | 50,000 | 50,084 | ||||||
|
| |||||||
Total Municipal Bonds | 122,829 | |||||||
|
| |||||||
PURCHASED OPTIONS - 0.1% | ||||||||
(See Note (j) in Notes to Schedule of Investments) | 151,313 | |||||||
|
| |||||||
SHORT-TERM INVESTMENTS - 0.9% | ||||||||
U.S. Treasury Bills - 0.6% | ||||||||
0.190% due 08/22/13 | 1,000,000 | 998,625 | ||||||
|
|
| Value | |||||||
Money Market Fund - 0.3% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 569,554 | $569,554 | ||||||
|
| |||||||
Total Short-Term Investments | 1,568,179 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 111.3% | 197,129,325 | |||||||
OTHER ASSETS & LIABILITIES, NET - (11.3%) |
| (20,051,653 | ) | |||||
|
| |||||||
NET ASSETS - 100.0% |
| $177,077,672 | ||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
U.S. Treasury Obligations | 92.2% | |||
Foreign Government Bonds & Notes | 7.7% | |||
Corporate Bonds & Notes | 3.6% | |||
Asset-Backed Securities | 3.5% | |||
Mortgage-Backed Securities | 3.2% | |||
Short-Term Investments | 0.9% | |||
Purchased Options | 0.1% | |||
Municipal Bonds | 0.1% | |||
|
| |||
111.3% | ||||
Other Assets & Liabilities, Net | (11.3% | ) | ||
|
| |||
100.0% | ||||
|
|
(b) | As of September 30, 2012, the fund’s Standard & Poor’s quality ratings as a percentage of total fixed income investments were as follows: |
AAA | 4.3% | |||
A-1 (Short-Term debt only) | 0.5% | |||
AA / U.S. Government & Agency Issues | 84.9% | |||
A | 1.5% | |||
BBB | 0.7% | |||
BB | 0.5% | |||
B | 0.7% | |||
Not Rated | 6.9% | |||
|
| |||
100.0% | ||||
|
|
(c) | Short-term investments reflect either the stated coupon rate or the annualized effective yield on the date of purchase for discounted Investments. |
(d) | As of September 30, 2012, 0.4% of the fund’s net assets were reported illiquid by the portfolio manager under the Trust’s policy. |
(e) | The average amount of borrowings by the fund on sale-buyback financing transactions (See Note 4 in Notes to Financial Statements) outstanding during the six-month period ended September 30, 2012 was $24,919,858 at a weighted average interest rate of (0.202%). |
(f) | Open futures contracts outstanding as of September 30, 2012 were as follows: |
Long Futures Outstanding | Number of Contracts | Notional Amount | Unrealized Appreciation | |||||||||
Eurodollar (03/16) | 34 | $34,000,000 | $9,436 | |||||||||
U.S. Treasury 10-Year Notes (12/12) | 5 | 500,000 | 3,783 | |||||||||
|
| |||||||||||
Total Futures Contracts | $13,219 | |||||||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-7
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
(g) | Reverse repurchase agreements outstanding as of September 30, 2012 were as follows: |
Counterparty | Interest Rate | Settlement Date | Maturity Date | Repurchase Amount | Principal Amount | |||||||||||||||
DUB | 0.210% | 09/20/12 | 10/04/12 | $1,309,607 | $1,309,500 | |||||||||||||||
DUB | 0.210% | 09/21/12 | 10/12/12 | 12,666,801 | 12,665,250 | |||||||||||||||
|
| |||||||||||||||||||
$13,974,750 | ||||||||||||||||||||
|
|
(h) | The average amount of borrowings by the fund on reverse repurchase agreements while outstanding during the six-month period ended September 30, 2012 was $6,987,375 at a weighted average interest rate 0.210%. |
(i) | Forward foreign currency contracts outstanding as of September 30, 2012 were as follows: |
Currency Purchased | Currency Sold | Expiration | Counterparty | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
AUD | 281,000 | USD | 291,113 | 10/12 | BRC | ($120 | ) | |||||||||||||||
AUD | 80,000 | USD | 82,879 | 10/12 | DUB | 748 | ||||||||||||||||
AUD | 147,000 | USD | 152,291 | 10/12 | JPM | 3,058 | ||||||||||||||||
AUD | 128,000 | USD | 132,607 | 10/12 | RBC | (1,471 | ) | |||||||||||||||
BRL | 861,729 | USD | 424,823 | 10/12 | UBS | 4,672 | ||||||||||||||||
BRL | 92,165 | USD | 45,078 | 12/12 | HSB | 78 | ||||||||||||||||
BRL | 882,016 | USD | 431,395 | 12/12 | MSC | 1,395 | ||||||||||||||||
BRL | 317,555 | USD | 115,317 | 12/12 | UBS | 317 | ||||||||||||||||
CNY | 2,318,616 | USD | 365,042 | 02/13 | BRC | (2,701 | ) | |||||||||||||||
EUR | 108,460 | USD | 139,381 | 10/12 | HSB | (615 | ) | |||||||||||||||
EUR | 226,000 | USD | 290,679 | 12/12 | BRC | 1,378 | ||||||||||||||||
EUR | 92,000 | USD | 118,330 | 12/12 | CIT | (1,365 | ) | |||||||||||||||
EUR | 71,000 | USD | 91,320 | 12/12 | JPM | (701 | ) | |||||||||||||||
EUR | 92,000 | USD | 118,329 | 12/12 | RBC | (1,937 | ) | |||||||||||||||
EUR | 315,000 | USD | 405,150 | 12/12 | RBS | (3,399 | ) | |||||||||||||||
EUR | 1,012,000 | USD | 1,301,625 | 12/12 | WBC | (10,311 | ) | |||||||||||||||
GBP | 256,000 | USD | 413,300 | 12/12 | HSB | 5,342 | ||||||||||||||||
MXN | 149,407 | USD | 11,530 | 12/12 | HSB | 496 | ||||||||||||||||
PHP | 35,610 | USD | 853 | 10/12 | CIT | 39 | ||||||||||||||||
SGD | 209 | USD | 170 | 10/12 | RBS | 4 | ||||||||||||||||
USD | 4,709,612 | AUD | 4,546,000 | 10/12 | RBC | (21,913 | ) | |||||||||||||||
USD | 214,688 | BRL | 435,482 | 10/12 | BRC | (3,494 | ) | |||||||||||||||
USD | 117,517 | BRL | 238,377 | 10/12 | MSC | (2,097 | ) | |||||||||||||||
USD | 92,619 | BRL | 187,870 | 10/12 | UBS | (308 | ) | |||||||||||||||
USD | 421,473 | BRL | 861,729 | 12/12 | UBS | (5,138 | ) | |||||||||||||||
USD | 2,184,771 | CAD | 2,152,000 | 12/12 | CIT | 37,049 | ||||||||||||||||
USD | 1,968,528 | CAD | 1,939,000 | 12/12 | DUB | 16,995 | ||||||||||||||||
USD | 355,956 | CNY | 2,260,910 | 02/13 | JPM | (1,109 | ) | |||||||||||||||
USD | 129,794 | EUR | 101,000 | 10/12 | RBS | 98 | ||||||||||||||||
USD | 10,281 | EUR | 8,000 | 10/12 | WBC | 9 | ||||||||||||||||
USD | 968,501 | EUR | 753,000 | 12/12 | BRC | 8,107 | ||||||||||||||||
USD | 268,814 | EUR | 209,000 | 12/12 | CIT | 5,977 | ||||||||||||||||
USD | 138,909 | EUR | 108,000 | 12/12 | DUB | 409 | ||||||||||||||||
USD | 10,634,220 | EUR | 8,268,000 | 12/12 | HSB | (210,918 | ) | |||||||||||||||
USD | 132,478 | EUR | 103,000 | 12/12 | JPM | 664 | ||||||||||||||||
USD | 1,263,922 | GBP | 781,000 | 12/12 | BRC | 7,043 | ||||||||||||||||
USD | 240,747 | GBP | 151,000 | 12/12 | RBC | 1,342 | ||||||||||||||||
USD | 434,288 | GBP | 269,000 | 12/12 | RBS | (4,208 | ) | |||||||||||||||
|
| |||||||||||||||||||||
Total Forward Foreign Currency Contracts |
| ($176,585 | ) | |||||||||||||||||||
|
|
(j) | Purchased options outstanding as of September 30, 2012 were as follows: |
Interest Rate Swaptions
Description | Pay/Receive Floating Rate Based on USD-LIBOR | Exercise Rate | Expiration Date | Counter- party | Notional Amount | Cost | Value | |||||||||||
Put - OTC 30-Year Interest Rate Swap r | Receive | 3.875% | 04/14/14 | DUB | $1,700,000 | $86,445 | $37,270 | |||||||||||
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-8
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Straddle Options
Description | Exercise Price (1) | Expiration Date | Counter- party | Notional Amount | Cost | Value | ||||||||||
Call & Put - OTC 3-Month vs. 30-Year Forward Volatility Agreement r | $— | 12/10/12 | DUB | $1,500,000 | $126,750 | $114,043 | ||||||||||
|
|
|
| |||||||||||||
(1) Exercise price and final cost determined on a future date, based upon implied volatility parameters. | ||||||||||||||||
Total Purchased Options | $213,195 | $151,313 | ||||||||||||||
|
|
|
|
(k) | Transactions in written options for the six-month period ended September 30, 2012 were as follows: |
Number of Contracts | Notional Amount in EUR | Notional Amount in $ | Premium | |||||||||||||
Outstanding, March 31, 2012 | — | — | 45,400,000 | $419,828 | ||||||||||||
Call Options Written | 9 | — | 5,600,000 | 18,560 | ||||||||||||
Put Options Written | 9 | 600,000 | 12,600,000 | 105,104 | ||||||||||||
Call Options Closed | (9 | ) | — | (4,400,000 | ) | (43,125 | ) | |||||||||
Put Options Closed | (9 | ) | — | (1,200,000 | ) | (14,525 | ) | |||||||||
Put Options Expired | — | — | (5,100,000 | ) | (64,120 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Outstanding, September 30, 2012 | — | 600,000 | 52,900,000 | $421,722 | ||||||||||||
|
|
|
|
|
|
|
|
(l) | Premiums received and value of written options outstanding as of September 30, 2012 were as follows: |
Inflation Floor/Cap Options
Description | Strike Index | Exercise Index | Expiration Date | Counter- party | Notional Amount | Premium | Value | |||||||||||||||||
Floor - OTC U.S. CPI Urban Consumers NSA | 216.69 | Maximum of [(1+0.00%)10 | 04/07/20 | CIT | $2,000,000 | $17,720 | ($2,931 | ) | ||||||||||||||||
Floor - OTC U.S. CPI Urban Consumers NSA | 217.97 | Maximum of [(1+0.00%)10 | 09/29/20 | CIT | 300,000 | 3,870 | (455 | ) | ||||||||||||||||
Floor - OTC U.S. CPI Urban Consumers NSA | 218.01 | Maximum of [(1+0.00%)10 | 10/13/20 | DUB | 700,000 | 6,860 | (1,595 | ) | ||||||||||||||||
|
|
|
| |||||||||||||||||||||
$28,450 | ($4,981 | ) | ||||||||||||||||||||||
|
|
|
|
Interest Rate Swaptions
Description | Pay/Receive Floating Rate Based on 3-Month USD-LIBOR | Exercise Rate | Expiration Date | Counter- party | Notional Amount | Premium | Value | |||||||||||||||||
Call - OTC 1-Year Interest Rate Swap | Receive | 0.795% | 10/11/12 | JPM | $1,200,000 | $— | ($5,500 | ) | ||||||||||||||||
Call - OTC 2-Year Interest Rate Swap | Receive | 1.056% | 10/11/12 | MSC | 2,600,000 | — | (35,560 | ) | ||||||||||||||||
Call - OTC 2-Year Interest Rate Swap | Receive | 0.915% | 11/14/12 | MSC | 2,900,000 | — | (31,240 | ) | ||||||||||||||||
Call - OTC 5-Year Interest Rate Swap | Receive | 0.750% | 03/18/13 | DUB | 4,000,000 | 9,550 | (9,139 | ) | ||||||||||||||||
Call - OTC 5-Year Interest Rate Swap | Receive | 0.750% | 03/18/13 | JPM | 1,600,000 | 3,680 | (3,656 | ) | ||||||||||||||||
Call - OTC 5-Year Interest Rate Swap | Receive | 1.700% | 03/18/13 | CIT | 2,200,000 | 25,960 | (85,388 | ) | ||||||||||||||||
Call - OTC 5-Year Interest Rate Swap | Receive | 1.700% | 03/18/13 | DUB | 6,500,000 | 76,925 | (252,283 | ) | ||||||||||||||||
|
| |||||||||||||||||||||||
116,115 | (422,766 | ) | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Put - OTC 1-Year Interest Rate Swap | Pay | 0.795% | 10/11/12 | JPM | 1,200,000 | — | — | |||||||||||||||||
Put - OTC 2-Year Interest Rate Swap | Pay | 1.056% | 10/11/12 | MSC | 2,600,000 | — | — | |||||||||||||||||
Put - OTC 2-Year Interest Rate Swap | Pay | 0.915% | 11/14/12 | MSC | 2,900,000 | — | (22 | ) | ||||||||||||||||
Put - OTC 5-Year Interest Rate Swap | Pay | 1.400% | 03/18/13 | DUB | 4,000,000 | 9,550 | (5,399 | ) | ||||||||||||||||
Put - OTC 5-Year Interest Rate Swap | Pay | 1.400% | 03/18/13 | JPM | 1,600,000 | 4,160 | (2,159 | ) | ||||||||||||||||
Put - OTC 5-Year Interest Rate Swap | Pay | 1.700% | 03/18/13 | CIT | 2,200,000 | 41,360 | (1,208 | ) | ||||||||||||||||
Put - OTC 5-Year Interest Rate Swap | Pay | 1.700% | 03/18/13 | DUB | 6,500,000 | 126,500 | (3,570 | ) | ||||||||||||||||
Put - OTC 5-Year Interest Rate Swap | Pay | 2.000% | 03/18/13 | DUB | 900,000 | 8,398 | (202 | ) | ||||||||||||||||
Put - OTC 5-Year Interest Rate Swap | Pay | 2.850% | 04/14/14 | DUB | 7,000,000 | 84,000 | (16,421 | ) | ||||||||||||||||
Based on 3-Month EUR-LIBOR | ||||||||||||||||||||||||
Put - OTC 10-Year Interest Rate Swap | Pay | 2.150% | 01/07/13 | DUB | EUR 600,000 | 3,189 | (2,802 | ) | ||||||||||||||||
|
|
|
| |||||||||||||||||||||
277,157 | (31,783 | ) | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
$393,272 | ($454,549 | ) | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total Written Options | $421,722 | ($459,530 | ) | |||||||||||||||||||||
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-9
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
(m) | Swap agreements outstanding as of September 30, 2012 were as follows: |
Credit Default Swaps on Corporate and Sovereign Issues - Buy Protection (1)
Referenced Obligation | Fixed Deal Pay Rate | Expiration Date | Counter- party | Implied Credit Spread at 09/30/12 (3) | Notional Amount (4) | Value | Upfront Premiums Paid (Received) | Unrealized Depreciation | ||||||||||||||||||||||
Starwood Hotels & Resorts Worldwide Inc | 1.000% | 03/20/13 | DUB | 0.194% | $300,000 | ($1,251 | ) | $5,065 | ($6,316 | ) | ||||||||||||||||||||
Societe Generale SA | 1.000% | 06/20/14 | BRC | 1.393% | 1,200,000 | 7,708 | 46,690 | (38,982 | ) | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
$6,457 | $51,755 | ($45,298 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Credit Default Swaps on Corporate and Sovereign Issues - Sell Protection (2) | ||||||||||||||||||||||||||||||
Referenced Obligation | Fixed Deal Receive Rate | Expiration Date | Counter- party | Implied Credit Spread at 09/30/12 (3) | Notional Amount (4) | Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||
Brazil Government Bond | 1.000% | 06/20/15 | BRC | 0.662% | $800,000 | $7,589 | ($6,842 | ) | $14,431 | |||||||||||||||||||||
United Kingdom Index-Linked Treasury | 1.000% | 06/20/15 | GSC | 0.197% | 1,000,000 | 22,262 | 11,004 | 11,258 | ||||||||||||||||||||||
Brazil Government Bond | 1.000% | 06/20/15 | HSB | 0.662% | 700,000 | 6,641 | (7,024 | ) | 13,665 | |||||||||||||||||||||
Japanese Government Bond | 1.000% | 12/20/15 | GSC | 0.459% | 800,000 | 14,163 | 17,678 | (3,515 | ) | |||||||||||||||||||||
Japanese Government Bond | 1.000% | 06/20/16 | HSB | 0.572% | 1,000,000 | 16,140 | (489 | ) | 16,629 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
$66,795 | $14,327 | $52,468 | ||||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Total Credit Default Swaps | $73,252 | $66,082 | $7,170 | |||||||||||||||||||||||||||
|
|
|
|
|
|
(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 investments comprising the referenced index or (ii) receive a net settlement amount in the form of cash or investments equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying investments 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 investments comprising the referenced index or (ii) pay net settlement amount in the form of cash or investments equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying investments comprising the referenced index. |
(3) | An implied credit spread is the spread in yield between a U.S. Treasury security and the referenced obligation or underlying investment that are identical in all respects except for the quality rating. 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 pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
Interest Rate Swaps
Floating Rate Index | Counterparty | Pay/Receive Floating Rate | Fixed Rate | Expiration Date | Notional Amount | Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||
OTC - BRL - CDI Compounded r | GSC | Pay | 8.255% | 01/02/15 | BRL 4,300,000 | $3,882 | $3,487 | $395 | ||||||||||||||||||||
OTC - BRL - CDI Compounded r | UBS | Pay | 8.260% | 01/02/15 | 5,900,000 | 5,642 | 6,506 | (864 | ) | |||||||||||||||||||
OTC - BRL - CDI Compounded r | MSC | Pay | 8.630% | 01/02/15 | 9,400,000 | 42,391 | 47,573 | (5,182 | ) | |||||||||||||||||||
OTC - BRL - CDI Compounded r | HSB | Pay | 8.825% | 01/02/15 | 6,500,000 | 42,057 | 39,932 | 2,125 | ||||||||||||||||||||
OTC - U.S. CPI Urban Consumers NSA r | CIT | Receive | 2.500% | 07/15/22 | $500,000 | 3,815 | 3,815 | — | ||||||||||||||||||||
CME - 3-Month USD-LIBOR | CME | Receive | 2.500% | 12/19/42 | 2,000,000 | 57,165 | 86,425 | (29,260 | ) | |||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||
Total Interest Rate Swaps | $154,952 | $187,738 | ($32,786 | ) | ||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||
Total Swap Agreements | $228,204 | $253,820 | ($25,616 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
(n) | As of September 30, 2012, investments with total aggregate values of $60,403, $213,863 and $14,057,967 were fully or partially segregated with the broker(s)/custodian as collateral for open futures contracts, swap contracts and reverse repurchase agreements, respectively. |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-10
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
(o) | Fair Value Measurements |
The following is a summary of the fund’s investments as categorized under the three-tier hierarchy of inputs used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant | Level 3 Significant | |||||||||||||||
Assets | Corporate Bonds & Notes | $6,424,052 | $— | $6,424,052 | $— | |||||||||||||
Mortgage-Backed Securities | 5,725,487 | — | 5,725,487 | — | ||||||||||||||
Asset-Backed Securities | 6,148,324 | — | 6,148,324 | — | ||||||||||||||
U.S. Treasury Obligations | 163,324,009 | — | 163,324,009 | — | ||||||||||||||
Foreign Government Bonds & Notes | 13,665,132 | — | 13,665,132 | — | ||||||||||||||
Municipal Bonds | 122,829 | — | 122,829 | — | ||||||||||||||
Short-Term Investments | 1,568,179 | 569,554 | 998,625 | — | ||||||||||||||
Derivatives: | ||||||||||||||||||
Credit Contracts | ||||||||||||||||||
Swaps | 74,503 | — | 74,503 | — | ||||||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Forward Foreign Currency Contracts | 95,220 | — | 95,220 | — | ||||||||||||||
Interest Rate Contracts | ||||||||||||||||||
Futures | 13,219 | 13,219 | — | — | ||||||||||||||
Purchased Options | 151,313 | — | 37,270 | 114,043 | ||||||||||||||
Swaps | 154,952 | — | 154,952 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Interest Rate Contracts | 319,484 | 13,219 | 192,222 | 114,043 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Assets - Derivatives | 489,207 | 13,219 | 361,945 | 114,043 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Assets | 197,467,219 | 582,773 | 196,770,403 | 114,043 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Liabilities | Derivatives: | |||||||||||||||||
Credit Contracts | ||||||||||||||||||
Swaps | (1,251 | ) | — | (1,251 | ) | — | ||||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Forward Foreign Currency Contracts | (271,805 | ) | — | (271,805 | ) | — | ||||||||||||
Interest Rate Contracts | ||||||||||||||||||
Written Options | (459,530 | ) | — | (454,549 | ) | (4,981 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities - Derivatives | (732,586 | ) | — | (727,605 | ) | (4,981 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities | (732,586 | ) | — | (727,605 | ) | (4,981 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $196,734,633 | $582,773 | $196,042,798 | $109,062 | ||||||||||||||
|
|
|
|
|
|
|
|
The following is a reconciliation of investments for significant unobservable inputs (Level 3) used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) for the six-month period ended September 30, 2012:
Assets Derivatives | Liabilities Derivatives | |||||||||||
Interest Rate Contracts | Interest Rate Contracts | |||||||||||
Purchased Options | Written Options | Total | ||||||||||
Value, Beginning of Period | $— | ($7,720 | ) | ($7,720 | ) | |||||||
Purchases | 126,750 | — | 126,750 | |||||||||
Sales (includes paydowns) | — | 1,884 | 1,884 | |||||||||
Accrued Discounts (Premiums) | — | — | — | |||||||||
Net Realized Gains (Losses) | — | — | — | |||||||||
Change in Net Unrealized Appreciation (Depreciation) | (12,707 | ) | 855 | (11,852 | ) | |||||||
Transfer In | — | — | — | |||||||||
Transfer Out | — | — | — | |||||||||
|
|
|
|
|
| |||||||
Value, End of Period | $114,043 | ($4,981 | ) | $109,062 | ||||||||
|
| |||||||||||
Change in Net Unrealized Appreciation (Depreciation) on Level 3 Investments Held at the End of Period, if Applicable | ($12,707 | ) | $855 | ($11,852 | ) | |||||||
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-11
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments
September 30, 2012 (Unaudited)
Shares | Value | |||||||
CONVERTIBLE PREFERRED STOCKS - 0.7% |
| |||||||
Financials - 0.7% | ||||||||
Wells Fargo & Co 7.500% | 3,000 | $3,714,000 | ||||||
|
| |||||||
Total Convertible Preferred Stocks | 3,714,000 | |||||||
|
| |||||||
PREFERRED STOCKS - 0.0% | ||||||||
Financials - 0.0% | ||||||||
Fannie Mae | 8,000 | 20,400 | ||||||
|
| |||||||
Total Preferred Stocks | 20,400 | |||||||
|
| |||||||
Principal | ||||||||
CORPORATE BONDS & NOTES - 19.9% | ||||||||
Consumer Discretionary - 0.0% | ||||||||
General Motors Co Escrow Receipt | EUR 200,000 | — | ||||||
|
| |||||||
Consumer Staples - 0.4% | ||||||||
Anheuser-Busch InBev Worldwide Inc | $1,300,000 | 1,309,643 | ||||||
Kraft Foods Group Inc | 517,000 | 634,197 | ||||||
Kraft Foods Inc | 183,000 | 223,741 | ||||||
6.875% due 02/01/38 | 100,000 | 137,886 | ||||||
Reynolds American Inc | 100,000 | 120,617 | ||||||
|
| |||||||
2,426,084 | ||||||||
|
| |||||||
Energy - 0.8% | ||||||||
AK Transneft (Ireland) | 100,000 | 130,375 | ||||||
Colorado Interstate Gas Co LLC | 200,000 | 233,101 | ||||||
Gaz Capital SA (Luxembourg) | 300,000 | 366,966 | ||||||
NGPL PipeCo LLC | 500,000 | 533,750 | ||||||
Novatek Finance Ltd (Ireland) | 200,000 | 214,050 | ||||||
Odebrecht Drilling Norbe VIII/IX Ltd (Cayman) | 97,000 | 109,562 | ||||||
Petrobras International Finance Co (Cayman) | 900,000 | 1,018,801 | ||||||
5.875% due 03/01/18 | 400,000 | 457,812 | ||||||
Petroleos Mexicanos (Mexico) | 600,000 | 706,500 | ||||||
Ras Laffan Liquefied Natural Gas Co Ltd III (Qatar) | 400,000 | 400,000 | ||||||
TNK-BP Finance SA (Luxembourg) | 200,000 | 243,050 | ||||||
|
| |||||||
4,413,967 | ||||||||
|
| |||||||
Financials - 15.0% | ||||||||
Ally Financial Inc | 4,600,000 | 4,726,592 | ||||||
4.500% due 02/11/14 | 500,000 | 512,500 |
Principal | Value | |||||||
7.500% due 09/15/20 | $200,000 | $230,250 | ||||||
8.300% due 02/12/15 | 600,000 | 666,000 | ||||||
American Express Bank FSB | 600,000 | 616,430 | ||||||
American Express Co | 200,000 | 206,833 | ||||||
American International Group Inc | 100,000 | 114,276 | ||||||
5.850% due 01/16/18 | 800,000 | 930,308 | ||||||
6.250% due 03/15/87 | 200,000 | 203,000 | ||||||
ANZ National International Ltd (New Zealand) | 300,000 | 312,080 | ||||||
Banco Santander Brasil SA (Brazil) | 600,000 | 591,990 | ||||||
4.250% due 01/14/16 ~ | 300,000 | 306,582 | ||||||
Banco Santander Chile (Chile) | 1,000,000 | 972,500 | ||||||
Bank of America Corp | 1,200,000 | 1,208,999 | ||||||
4.500% due 04/01/15 | 1,900,000 | 2,036,479 | ||||||
4.875% due 01/15/13 | 100,000 | 101,150 | ||||||
5.650% due 05/01/18 | 500,000 | 570,863 | ||||||
Bank of China Ltd (Hong Kong) | 100,000 | 112,230 | ||||||
Bank of Montreal (Canada) | 300,000 | 314,789 | ||||||
2.850% due 06/09/15 ~ | 100,000 | 106,339 | ||||||
Bank of Nova Scotia (Canada) | 200,000 | 206,695 | ||||||
Banque PSA Finance SA (France) | 600,000 | 588,418 | ||||||
Barclays Bank PLC (United Kingdom) | 720,000 | 939,316 | ||||||
BBVA Bancomer SA (Mexico) | 3,800,000 | 4,181,900 | ||||||
BM&FBOVESPA SA (Brazil) | 100,000 | 114,650 | ||||||
BNP Paribas SA (France) | 1,000,000 | 1,000,680 | ||||||
BPCE SA (France) | 100,000 | 100,498 | ||||||
9.000% § ± | EUR 300,000 | 382,624 | ||||||
CIT Group Inc | $100,000 | 104,750 | ||||||
Citigroup Inc | 200,000 | 202,716 | ||||||
3.625% due 11/30/17 § | EUR 500,000 | 589,163 | ||||||
5.500% due 04/11/13 | $700,000 | 717,235 | ||||||
5.500% due 10/15/14 | 1,000,000 | 1,078,946 | ||||||
8.500% due 05/22/19 | 169,000 | 223,838 | ||||||
Commonwealth Bank of Australia (Australia) | 1,600,000 | 1,605,445 | ||||||
Credit Agricole Home Loan SFH (France) | 1,400,000 | 1,386,928 | ||||||
Credit Agricole SA (France) | GBP 300,000 | 352,363 | ||||||
Credit Suisse NY (Switzerland) | $300,000 | 305,103 | ||||||
Daimler Finance North America LLC | 400,000 | 402,898 | ||||||
Dexia Credit Local SA (France) | 800,000 | 776,865 | ||||||
4.110% due 09/18/13 | EUR 1,600,000 | 2,055,257 | ||||||
Export Credit Bank of Turkey (Turkey) | $200,000 | 220,600 | ||||||
Export-Import Bank of Korea (South Korea) | 100,000 | 109,475 | ||||||
5.125% due 06/29/20 | 100,000 | 117,451 | ||||||
Ford Motor Credit Co LLC | 500,000 | 561,250 | ||||||
8.700% due 10/01/14 | 200,000 | 227,548 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-12
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | Value | |||||||
General Electric Capital Corp | $200,000 | $268,455 | ||||||
HBOS PLC (United Kingdom) | 8,100,000 | 6,609,600 | ||||||
HSBC Bank PLC (United Kingdom) | 200,000 | 201,983 | ||||||
ICICI Bank Ltd (India) | 1,700,000 | 1,769,352 | ||||||
5.500% due 03/25/15 ~ | 600,000 | 632,573 | ||||||
ING Bank NV (Netherlands) | 100,000 | 103,728 | ||||||
Intesa Sanpaolo SPA (Italy) | 1,400,000 | 1,383,442 | ||||||
2.831% due 02/24/14 § ~ r | 500,000 | 492,713 | ||||||
JPMorgan Chase & Co | 300,000 | 341,944 | ||||||
LBG Capital No. 2 PLC (United Kingdom) | GBP 800,000 | 1,306,959 | ||||||
Lloyds TSB Bank PLC (United Kingdom) | $1,100,000 | 1,235,655 | ||||||
Macquarie Bank Ltd (Australia) | 5,300,000 | 5,564,640 | ||||||
Merrill Lynch & Co Inc | 900,000 | 1,079,834 | ||||||
Metropolitan Life Global Funding I | 300,000 | 307,268 | ||||||
Morgan Stanley | 1,900,000 | 2,137,080 | ||||||
National Australia Bank Ltd (Australia) | 1,600,000 | 1,610,752 | ||||||
Nationwide Building Society (United Kingdom) 6.250% due 02/25/20 ~ r | 300,000 | 344,709 | ||||||
Nordea Bank AB (Sweden) | 100,000 | 101,147 | ||||||
Nordea Eiendomskreditt AS (Norway) | 900,000 | 899,656 | ||||||
Nykredit Realkredit AS (Denmark) | DKK 703,464 | 122,347 | ||||||
1.675% due 10/01/38 § | 892,954 | 155,765 | ||||||
Principal Life Income Funding Trusts | $100,000 | 102,753 | ||||||
Qatari Diar Finance QSC (Qatar) | 200,000 | 229,500 | ||||||
RCI Banque SA (France) | 1,300,000 | 1,273,994 | ||||||
Realkredit Danmark AS (Denmark) | DKK 3,136,632 | 547,402 | ||||||
RZD Capital Ltd (Ireland) | $500,000 | 555,290 | ||||||
Santander Issuances SAU (Spain) | GBP 3,000,000 | 4,563,439 | ||||||
Sberbank of Russia Via Sb Capital SA (Luxembourg) | $500,000 | 553,750 | ||||||
SLM Corp | 100,000 | 99,054 | ||||||
5.000% due 10/01/13 | 2,600,000 | 2,707,250 | ||||||
6.250% due 01/25/16 | 100,000 | 109,000 | ||||||
8.000% due 03/25/20 | 400,000 | 464,000 | ||||||
8.450% due 06/15/18 | 600,000 | 705,893 | ||||||
Springleaf Finance Corp | EUR 1,000,000 | 1,251,638 | ||||||
SSIF Nevada LP | $3,300,000 | 3,316,220 | ||||||
State Bank of India (India) | 1,000,000 | 1,041,258 | ||||||
Stone Street Trust | 700,000 | 736,670 | ||||||
Temasek Financial I Ltd (Singapore) | 300,000 | 342,452 |
Principal | Value | |||||||
The Bear Stearns Cos LLC | $400,000 | $481,571 | ||||||
The Dai-ichi Life Insurance Co Ltd (Japan) | 300,000 | 335,872 | ||||||
The Goldman Sachs Group Inc | 200,000 | 208,243 | ||||||
6.750% due 10/01/37 | 1,200,000 | 1,290,824 | ||||||
The Royal Bank of Scotland Group PLC (United Kingdom) | 400,000 | 425,056 | ||||||
7.640% § ± | 500,000 | 413,750 | ||||||
UBS AG (Switzerland) | 700,000 | 829,756 | ||||||
Wachovia Corp | 300,000 | 300,285 | ||||||
Wells Fargo & Co | 1,700,000 | 1,959,250 | ||||||
|
| |||||||
84,906,574 | ||||||||
|
| |||||||
Health Care - 0.0% | ||||||||
UnitedHealth Group Inc | 100,000 | 139,466 | ||||||
|
| |||||||
Industrials - 1.3% | ||||||||
Caterpillar Inc | 1,400,000 | 1,402,572 | ||||||
International Lease Finance Corp | 255,000 | 263,925 | ||||||
5.750% due 05/15/16 | 100,000 | 106,542 | ||||||
Noble Group Ltd (Bermuda) | 200,000 | 213,000 | ||||||
United Technologies Corp | 5,100,000 | 5,122,017 | ||||||
|
| |||||||
7,108,056 | ||||||||
|
| |||||||
Information Technology - 0.3% | ||||||||
Hewlett-Packard Co | 1,600,000 | 1,600,290 | ||||||
|
| |||||||
Materials - 1.2% | ||||||||
Braskem Finance Ltd (Cayman) | 3,600,000 | 3,834,000 | ||||||
Codelco Inc (Chile) | 200,000 | 258,112 | ||||||
CSN Islands XI Corp (Cayman) | 700,000 | 784,000 | ||||||
CSN Resources SA (Luxembourg) | 600,000 | 649,500 | ||||||
Gerdau Holdings Inc | 400,000 | 464,000 | ||||||
GTL Trade Finance Inc (United Kingdom) | 600,000 | 700,500 | ||||||
Vale Overseas Ltd (Cayman) | 200,000 | 232,337 | ||||||
6.875% due 11/10/39 | 100,000 | 117,260 | ||||||
|
| |||||||
7,039,709 | ||||||||
|
| |||||||
Telecommunication Services - 0.5% | ||||||||
AT&T Inc | 200,000 | 263,778 | ||||||
Deutsche Telekom International Finance BV (Netherlands) | GBP 900,000 | 1,837,794 | ||||||
Verizon Communications Inc | $900,000 | 907,288 | ||||||
|
| |||||||
3,008,860 | ||||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-13
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | Value | |||||||
Utilities - 0.4% | ||||||||
CMS Energy Corp | $1,000,000 | $1,129,246 | ||||||
Electricite de France (France) | 200,000 | 211,957 | ||||||
6.500% due 01/26/19 ~ | 200,000 | 245,022 | ||||||
Entergy Corp | 500,000 | 526,350 | ||||||
|
| |||||||
2,112,575 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes | 112,755,581 | |||||||
|
| |||||||
SENIOR LOAN NOTES - 0.3% | ||||||||
Financials - 0.3% | ||||||||
Springleaf Finance Corp (Initial) | 2,000,000 | 1,962,000 | ||||||
|
| |||||||
Total Senior Loan Notes | 1,962,000 | |||||||
|
| |||||||
MORTGAGE-BACKED SECURITIES - 56.5% |
| |||||||
Collateralized Mortgage Obligations - Commercial - 1.3% |
| |||||||
Bear Stearns Commercial Mortgage Securities | 100,000 | 116,843 | ||||||
5.700% due 06/11/50 " | 200,000 | 238,778 | ||||||
Credit Suisse Mortgage Capital Certificates | 900,000 | 1,019,826 | ||||||
5.666% due 03/15/39 " § | 100,000 | 112,177 | ||||||
European Loan Conduit (Ireland) | EUR 50,607 | 59,830 | ||||||
Greenwich Capital Commercial Funding Corp | $400,000 | 459,248 | ||||||
JPMorgan Chase Commercial Mortgage Securities Corp | 500,000 | 565,465 | ||||||
LB-UBS Commercial Mortgage Trust | 600,000 | 720,031 | ||||||
Merrill Lynch-Floating Trust | 408,375 | 402,951 | ||||||
Merrill Lynch/Countrywide Commercial Mortgage Trust | 500,000 | 569,800 | ||||||
Morgan Stanley Capital I Trust | 1,700,000 | 1,968,665 | ||||||
Wachovia Bank Commercial Mortgage Trust | 164,493 | 159,287 | ||||||
5.342% due 12/15/43 " | 600,000 | 682,689 | ||||||
|
| |||||||
7,075,590 | ||||||||
|
| |||||||
Collateralized Mortgage Obligations - Residential - 3.7% |
| |||||||
Arran Residential Mortgages Funding PLC (United Kingdom) | EUR 1,638,652 | 2,113,850 | ||||||
1.745% due 05/16/47 " § ~ | 1,000,000 | 1,309,898 | ||||||
Banc of America Funding Corp | $124,663 | 129,762 | ||||||
Banc of America Mortgage Securities Inc | 59,550 | 60,860 | ||||||
BCAP LLC Trust | 100,000 | 80,750 | ||||||
Bear Stearns Adjustable Rate Mortgage Trust | 56,542 | 55,484 | ||||||
2.470% due 10/25/35 " § | 363,941 | 342,850 |
Principal | Value | |||||||
2.764% due 08/25/33 " § | $140,403 | $143,682 | ||||||
2.991% due 01/25/35 " § | 1,424,721 | 1,323,366 | ||||||
3.078% due 03/25/35 " § | 106,537 | 107,432 | ||||||
Bear Stearns Alt-A Trust | 58,725 | 52,950 | ||||||
2.974% due 11/25/36 " § | 91,704 | 58,721 | ||||||
3.006% due 09/25/35 " § | 69,916 | 56,825 | ||||||
Chase Mortgage Finance Corp | 274,900 | 264,761 | ||||||
Chevy Chase Mortgage Funding Corp | 69,416 | 53,091 | ||||||
Citigroup Mortgage Loan Trust Inc | 67,042 | 65,092 | ||||||
2.570% due 10/25/35 " § | 114,791 | 106,378 | ||||||
Countrywide Alternative Loan Trust | 376,341 | 280,594 | ||||||
Countrywide Home Loan Mortgage Pass-Through Trust | 31,861 | 23,591 | ||||||
0.557% due 06/25/35 " § ~ | 138,597 | 118,579 | ||||||
Credit Suisse First Boston Mortgage Securities Corp | 5,191 | 4,534 | ||||||
6.000% due 11/25/35 " | 110,299 | 85,493 | ||||||
Downey Saving and Loan Association Mortgage Loan Trust | 422,064 | 94,813 | ||||||
Fannie Mae | 3,400,000 | 3,383,636 | ||||||
0.527% due 04/25/37 " § | 146,537 | 147,175 | ||||||
0.667% due 09/25/35 " § | 285,068 | 286,908 | ||||||
1.625% due 11/25/23 " § | 224,382 | 230,475 | ||||||
4.250% due 07/25/17 " | 18,065 | 18,162 | ||||||
4.500% due 10/25/17 " | 27,773 | 28,127 | ||||||
Freddie Mac | 47,092 | 47,503 | ||||||
1.548% due 07/25/44 " § | 248,309 | 253,854 | ||||||
8.000% due 04/15/30 " | 246,791 | 293,425 | ||||||
Granite Master Issuer PLC (United Kingdom) | EUR 592,775 | 747,654 | ||||||
0.399% due 12/20/54 " § ~ | 953,531 | 1,202,666 | ||||||
0.479% due 12/20/54 " § | $473,804 | 464,091 | ||||||
Granite Mortgages PLC (United Kingdom) | EUR 31,641 | 40,165 | ||||||
1.163% due 01/20/44 " § ~ | GBP 32,020 | 51,191 | ||||||
1.011% due 09/20/44 " § ~ | 174,176 | 276,928 | ||||||
Harborview Mortgage Loan Trust | $629,408 | 406,495 | ||||||
0.409% due 01/19/38 " § | 202,694 | 146,263 | ||||||
0.439% due 05/19/35 " § | 36,185 | 26,714 | ||||||
JPMorgan Mortgage Trust | 27,892 | 28,506 | ||||||
5.283% due 07/25/35 " § | 336,227 | 339,028 | ||||||
5.750% due 01/25/36 " | 57,990 | 54,102 | ||||||
Mellon Residential Funding Corp | 9,801 | 9,871 | ||||||
Merrill Lynch Mortgage Investors Inc | 48,118 | 40,877 | ||||||
2.487% due 11/25/35 " § | 3,391,150 | 3,330,067 | ||||||
Morgan Stanley Mortgage Loan Trust | 286,082 | 299,249 | ||||||
Residential Accredit Loans Inc | 97,803 | 43,055 | ||||||
6.000% due 06/25/36 " | 263,348 | 195,242 | ||||||
Residential Asset Securitization Trust | 10,947 | 10,336 | ||||||
Structured Asset Mortgage Investments Inc | 213,477 | 141,417 | ||||||
Structured Asset Securities Corp | 28,059 | 27,981 | ||||||
2.843% due 10/28/35 " § ~ | 65,298 | 57,104 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-14
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | Value | |||||||
Washington Mutual Mortgage | $26,992 | $26,039 | ||||||
0.537% due 01/25/45 " § | 27,939 | 26,466 | ||||||
1.548% due 08/25/42 " § | 4,696 | 4,384 | ||||||
2.344% due 02/27/34 " § | 8,441 | 8,605 | ||||||
2.594% due 09/25/46 " § | 99,568 | 86,085 | ||||||
5.199% due 02/25/37 " § | 561,807 | 517,114 | ||||||
Wells Fargo Mortgage-Backed Securities Trust | 111,218 | 115,014 | ||||||
2.617% due 03/25/36 " § | 695,911 | 634,144 | ||||||
2.675% due 04/25/36 " § | 82,508 | 73,536 | ||||||
4.500% due 11/25/18 " | 15,843 | 15,956 | ||||||
|
| |||||||
21,068,966 | ||||||||
|
| |||||||
Fannie Mae - 50.4% | ||||||||
1.348% due 10/01/44 " § | 44,264 | 44,962 | ||||||
2.175% due 09/01/35 " § | 173,225 | 184,065 | ||||||
2.310% due 08/01/22 " | 500,000 | 514,101 | ||||||
2.492% due 11/01/34 " § | 152,591 | 165,492 | ||||||
2.500% due 10/16/27 - 11/19/27 " § | 7,000,000 | 7,353,281 | ||||||
2.612% due 12/01/35 " § | 30,116 | 32,310 | ||||||
2.640% due 11/01/32 " § | 160,130 | 171,676 | ||||||
2.870% due 09/01/27 " | 500,000 | 510,657 | ||||||
3.000% due 10/16/27 - 10/01/42 " | 60,400,000 | 63,990,455 | ||||||
3.500% due 08/01/26 - 11/14/42 " | 67,947,785 | 72,503,527 | ||||||
4.000% due 04/01/24 - 11/14/42 " | 32,321,119 | 34,766,244 | ||||||
4.500% due 07/01/18 - 08/01/41 " | 48,261,363 | 52,389,256 | ||||||
4.501% due 12/01/36 " § | 17,984 | 19,102 | ||||||
5.000% due 03/01/34 - 11/10/40 " | 39,752,094 | 43,342,128 | ||||||
5.500% due 12/01/20 - 11/10/40 " | 5,841,487 | 6,415,593 | ||||||
6.000% due 09/01/22 - 01/01/39 " | 3,443,507 | 3,818,406 | ||||||
6.500% due 03/01/17 " | 28,754 | 31,287 | ||||||
|
| |||||||
286,252,542 | ||||||||
|
| |||||||
Freddie Mac - 1.1% | ||||||||
2.375% due 11/01/31 " § | 6,834 | 7,181 | ||||||
2.384% due 04/01/32 " § | 23,407 | 24,992 | ||||||
2.457% due 09/01/35 " § | 23,604 | 25,107 | ||||||
2.739% due 06/01/35 " § | 255,020 | 273,441 | ||||||
2.995% due 09/01/35 " § | 164,573 | 176,937 | ||||||
4.500% due 09/01/41 " | 693,941 | 750,928 | ||||||
5.500% due 03/01/23 - 05/01/40 " | 4,371,179 | 4,772,597 | ||||||
6.000% due 12/01/22 - 03/01/23 " | 101,394 | 111,923 | ||||||
|
| |||||||
6,143,106 | ||||||||
|
| |||||||
Total Mortgage-Backed Securities | 320,540,204 | |||||||
|
| |||||||
ASSET-BACKED SECURITIES - 4.3% | ||||||||
Argent Securities Inc | 1,554,961 | 1,171,128 | ||||||
Asset Backed Funding Certificates | 117,935 | 93,661 | ||||||
Auto ABS SARL (Italy) | EUR 293,879 | 376,625 | ||||||
Bear Stearns Asset Backed Securities Trust | $500,000 | 357,895 | ||||||
3.000% due 10/25/36 " § | 156,736 | 114,054 | ||||||
CIT Mortgage Loan Trust | 5,000,000 | 4,739,355 | ||||||
Citibank Omni Master Trust | 3,200,000 | 3,351,291 | ||||||
Countrywide Asset-Backed Certificates | 3,709,324 | 3,591,599 | ||||||
0.567% due 05/25/46 " § ~ | 3,032,449 | 2,559,504 |
Principal | Value | |||||||
Duane Street CLO (Cayman) | $2,342,827 | $2,321,377 | ||||||
Galaxy CLO Ltd (Cayman) | 455,151 | 450,836 | ||||||
Halcyon Structured Asset Management Long Short CLO Ltd (Cayman) | 2,500,000 | 2,452,932 | ||||||
Hillmark Funding CDO (Cayman) | 1,100,000 | 1,064,271 | ||||||
HSBC Home Equity Loan Trust | 472,476 | 461,737 | ||||||
Long Beach Mortgage Loan Trust | 18,554 | 15,443 | ||||||
Park Place Securities Inc | 138,718 | 134,403 | ||||||
Securitized Asset-Backed Receivables LLC Trust | 138,417 | 73,501 | ||||||
United States Small Business Administration | 29,019 | 29,782 | ||||||
Wind River Ltd CLO (Cayman) | 667,641 | 653,143 | ||||||
Wood Street CLO BV (Netherlands) | EUR 520,709 | 646,612 | ||||||
|
| |||||||
Total Asset-Backed Securities | 24,659,149 | |||||||
|
| |||||||
U.S. GOVERNMENT AGENCY ISSUES - 11.0% |
| |||||||
Fannie Mae | $3,900,000 | 3,924,348 | ||||||
1.125% due 04/27/17 | 2,100,000 | 2,141,246 | ||||||
1.250% due 01/30/17 | 13,300,000 | 13,667,200 | ||||||
5.000% due 02/13/17 | 900,000 | 1,069,906 | ||||||
5.000% due 05/11/17 | 900,000 | 1,074,538 | ||||||
5.375% due 06/12/17 | 3,500,000 | 4,248,087 | ||||||
Freddie Mac | 3,100,000 | 3,143,003 | ||||||
1.000% due 06/29/17 | 13,700,000 | 13,872,127 | ||||||
1.000% due 07/28/17 | 7,300,000 | 7,404,565 | ||||||
1.000% due 09/29/17 | 3,900,000 | 3,944,753 | ||||||
1.250% due 05/12/17 | 700,000 | 717,412 | ||||||
1.250% due 08/01/19 | 3,700,000 | 3,716,950 | ||||||
1.750% due 05/30/19 | 300,000 | 311,285 | ||||||
2.375% due 01/13/22 | 400,000 | 420,597 | ||||||
3.750% due 03/27/19 | 1,200,000 | 1,400,869 | ||||||
5.500% due 08/23/17 | 900,000 | 1,105,392 | ||||||
|
| |||||||
Total U.S. Government Agency Issues | 62,162,278 | |||||||
|
| |||||||
U.S. TREASURY OBLIGATIONS - 23.9% |
| |||||||
U.S. Treasury Inflation Protected Securities - 5.8% |
| |||||||
0.125% due 07/15/22 ^ | 1,494,480 | 1,634,704 | ||||||
0.625% due 07/15/21 ^ | 3,964,584 | 4,540,067 | ||||||
0.750% due 02/15/42 ^ | 2,230,734 | 2,431,500 | ||||||
1.125% due 01/15/21 ^ | 3,142,140 | 3,722,456 | ||||||
1.250% due 07/15/20 ^ | 210,116 | 251,400 | ||||||
2.000% due 01/15/26 ^ ‡ | 2,193,303 | 2,886,422 | ||||||
2.125% due 02/15/40 ^ ‡ | 6,254,236 | 9,159,523 | ||||||
2.375% due 01/15/25 ^ | 1,337,039 | 1,817,956 | ||||||
2.375% due 01/15/27 ^ | 3,976,455 | 5,499,624 | ||||||
3.625% due 04/15/28 ^ | 708,285 | 1,125,841 | ||||||
|
| |||||||
33,069,493 | ||||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-15
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | Value | |||||||
U.S. Treasury Notes - 18.1% | ||||||||
0.250% due 08/31/14 | $13,400,000 | $13,405,762 | ||||||
0.250% due 09/30/14 | 13,200,000 | 13,206,191 | ||||||
0.500% due 07/31/17 | 11,300,000 | 11,248,800 | ||||||
0.750% due 06/30/17 | 2,500,000 | 2,519,922 | ||||||
0.875% due 07/31/19 | 32,200,000 | 31,915,738 | ||||||
1.000% due 08/31/19 | 7,200,000 | 7,187,623 | ||||||
1.000% due 09/30/19 | 500,000 | 498,516 | ||||||
1.250% due 10/31/15 | 16,900,000 | 17,376,631 | ||||||
1.500% due 08/31/18 ‡ | 1,200,000 | 1,247,532 | ||||||
1.750% due 05/15/22 | 3,600,000 | 3,652,596 | ||||||
3.375% due 11/15/19 | 300,000 | 348,023 | ||||||
3.500% due 02/15/18 | 200,000 | 229,484 | ||||||
|
| |||||||
102,836,818 | ||||||||
|
| |||||||
Total U.S. Treasury Obligations | 135,906,311 | |||||||
|
| |||||||
FOREIGN GOVERNMENT BONDS & NOTES - 5.3% |
| |||||||
Banco Nacional Desenvolvimento Economico e Social (Brazil) | EUR 100,000 | 136,665 | ||||||
Canada Housing Trust No 1 (Canada) | CAD 100,000 | 115,594 | ||||||
Italy Buoni Poliennali del Tesoro (Italy) | EUR 8,000,000 | 10,320,604 | ||||||
2.500% due 03/01/15 | 700,000 | 895,208 | ||||||
3.000% due 04/01/14 | 100,000 | 130,215 | ||||||
3.750% due 08/01/15 | 100,000 | 131,319 | ||||||
4.250% due 07/01/14 | 100,000 | 132,740 | ||||||
4.500% due 07/15/15 | 300,000 | 401,361 | ||||||
Italy Certificati di Credito del Tesoro (Italy) | 1,000,000 | 1,262,131 | ||||||
Province of British Columbia (Canada) | CAD 100,000 | 108,279 | ||||||
4.300% due 06/18/42 | 100,000 | 122,183 | ||||||
Province of Ontario (Canada) | $400,000 | 402,084 | ||||||
3.000% due 07/16/18 | 100,000 | 109,596 | ||||||
3.150% due 06/02/22 | CAD 5,500,000 | 5,820,568 | ||||||
4.000% due 06/02/21 | 800,000 | 907,139 | ||||||
4.200% due 06/02/20 | 200,000 | 229,433 | ||||||
4.300% due 03/08/17 | 400,000 | 450,705 | ||||||
4.400% due 06/02/19 | 300,000 | 346,967 | ||||||
4.600% due 06/02/39 | 100,000 | 123,734 | ||||||
4.700% due 06/02/37 | 400,000 | 496,474 | ||||||
5.500% due 06/02/18 | 100,000 | 120,365 | ||||||
Province of Quebec (Canada) | $400,000 | 448,066 | ||||||
3.500% due 12/01/22 | CAD 2,200,000 | 2,363,696 | ||||||
4.250% due 12/01/21 | 1,100,000 | 1,258,561 | ||||||
4.500% due 12/01/17 | 200,000 | 228,880 | ||||||
4.500% due 12/01/18 | 200,000 | 230,731 | ||||||
4.500% due 12/01/20 | 200,000 | 232,660 | ||||||
Republic of Panama (Panama) | $40,000 | 68,300 | ||||||
Russia Foreign Bond (Russia) | 1,288,000 | 1,628,676 | ||||||
Societe de Financement de l’Economie Francaise (France) | 200,000 | 209,365 | ||||||
Spain Government Bond (Spain) | EUR 300,000 | 393,029 | ||||||
Vnesheconombank PLC (Ireland) | $200,000 | 214,944 | ||||||
5.450% due 11/22/17 ~ | 100,000 | 109,026 | ||||||
|
| |||||||
Total Foreign Government Bonds & Notes | 30,149,298 | |||||||
|
|
Principal | Value | |||||||
MUNICIPAL BONDS - 4.3% | ||||||||
American Municipal Power Inc OH ‘B’ | $1,000,000 | $1,460,340 | ||||||
Buckeye Tobacco Settlement Financing | 1,100,000 | 888,019 | ||||||
City of North Las Vegas NV | 900,000 | 1,016,397 | ||||||
Clark County NV Airport ‘C’ | 200,000 | 285,106 | ||||||
Irvine Ranch Water District CA | 900,000 | 902,898 | ||||||
Los Angeles Unified School District CA ‘A1’ | 400,000 | 434,820 | ||||||
Metropolitan Transportation Authority NY ‘E’ | 2,100,000 | 2,356,830 | ||||||
New Jersey Economic Development Authority ‘B’ | 4,100,000 | 3,305,912 | ||||||
New York Liberty Development Corp | 3,700,000 | 4,363,854 | ||||||
North Carolina Turnpike Authority ‘B’ | 100,000 | 116,644 | ||||||
Southern California Public Power Authority | 1,600,000 | 1,912,240 | ||||||
State of California | ||||||||
5.650% due 04/01/39 § | 100,000 | 102,535 | ||||||
7.500% due 04/01/34 | 100,000 | 131,906 | ||||||
7.550% due 04/01/39 | 100,000 | 135,751 | ||||||
7.600% due 11/01/40 | 1,400,000 | 1,921,948 | ||||||
Tobacco Securitization Authority of Southern California ‘A1’ | 800,000 | 653,440 | ||||||
Tobacco Settlement Finance Authority of WV ‘A’ | 840,000 | 643,222 | ||||||
University of Arizona | 2,700,000 | 3,175,470 | ||||||
University of California | 500,000 | 575,415 | ||||||
|
| |||||||
Total Municipal Bonds | 24,382,747 | |||||||
|
| |||||||
SHORT-TERM INVESTMENTS - 8.2% | ||||||||
Foreign Government Issues - 6.2% | ||||||||
Italy Buoni Ordinari del Tesoro (Italy) | ||||||||
1.411% due 02/28/13 | EUR 900,000 | 1,150,473 | ||||||
Japan Treasury Discount Bill (Japan) | ||||||||
0.100% due 11/05/12 | JPY 2,100,000,000 | 26,907,017 | ||||||
Spain Letras del Tesoro (Spain) | ||||||||
2.904% due 09/20/13 | EUR 5,500,000 | 6,881,785 | ||||||
|
| |||||||
34,939,275 | ||||||||
|
| |||||||
U.S. Treasury Bills - 1.8% | ||||||||
0.205% due 06/27/13 ‡ | $530,000 | 529,406 | ||||||
0.140% due 02/07/13 ‡ | 9,732,000 | 9,728,516 | ||||||
0.103% due 11/15/12 ‡ | 126,000 | 125,988 | ||||||
|
| |||||||
10,383,910 | ||||||||
|
| |||||||
Repurchase Agreement - 0.0% | ||||||||
JPMorgan Chase & Co | 100,000 | 100,000 | ||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-16
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Shares | Value | |||||||
Money Market Fund - 0.2% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 884,900 | $884,900 | ||||||
|
| |||||||
Total Short-Term Investments | 46,308,085 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 134.4% |
| 762,560,053 | ||||||
TOTAL SECURITIES SOLD SHORT - (2.1%) |
| |||||||
(See Note (g) in Notes to Schedule of Investments) |
| (11,718,125 | ) | |||||
OTHER ASSETS & LIABILITIES, NET - (32.3%) |
| (183,331,663 | ) | |||||
|
| |||||||
NET ASSETS - 100.0% | $567,510,265 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Mortgage-Backed Securities | 56.5% | |||
U.S. Treasury Obligations | 23.9% | |||
Corporate Bonds & Notes | 19.9% | |||
U.S. Government Agency Issues | 11.0% | |||
Short-Term Investments | 8.2% | |||
Foreign Government Bonds & Notes | 5.3% | |||
Asset-Backed Securities | 4.3% | |||
Municipal Bonds | 4.3% | |||
Convertible Preferred Stocks | 0.7% | |||
Senior Loan Notes | 0.3% | |||
|
| |||
134.4% | ||||
Securities Sold Short | (2.1% | ) | ||
Other Assets & Liabilities, Net | (32.3% | ) | ||
|
| |||
100.0% | ||||
|
|
(b) | As of September 30, 2012, the fund’s Standard & Poor’s quality ratings as a percentage of total fixed income investments were are follows: |
AAA | 2.4% | |||
A-1 (Short-Term Debt Only) | 2.3% | |||
AA / U.S. Government & Agency Issue | 69.7% | |||
A | 6.4% | |||
BBB | 6.0% | |||
BB | 1.2% | |||
B | 2.5% | |||
CCC | 0.5% | |||
CC | 0.1% | |||
D | 0.1% | |||
Not Rated | 8.8% | |||
|
| |||
100.0% | ||||
|
|
(c) | Short-term investments reflect either the stated coupon rate or the annualized effective yield on the date of purchase for discounted investments. |
(d) | Investments with a total aggregate value of $168,314 or less than 0.1% of the fund’s net assets were in default as of September 30, 2012. |
(e) | As of September 30, 2012, 2.0% of the fund’s net assets were reported illiquid by the portfolio manager under the Trust’s policy. |
(f) | The average amount of borrowings by the fund on sale-buyback financing transactions (See Note 4 in Notes to Financial Statements) outstanding during the six-month period ended September 30, 2012 was $45,911 at a weighted average interest rate of (6.281%.) |
(g) | Securities sold short outstanding as of September 30, 2012 were as follows: |
Description | Principal Amount | Value | ||||||
Mortgage-Backed Securities - (2.1%) | ||||||||
Fannie Mae - (2.1%) | ||||||||
3.000% due 10/11/42 | $7,000,000 | ($7,389,375) | ||||||
4.500% due 10/11/42 | 4,000,000 | (4,328,750) | ||||||
|
| |||||||
Total Securities Sold Short | ($11,718,125) | |||||||
|
|
(h) | Open futures contracts outstanding as of September 30, 2012 were as follows: |
Long Futures Outstanding | Number of Contracts | Notional Amount | Unrealized Appreciation (Depreciation) | |||||||||
Euribor (12/14) | 8 | EUR 8,000,000 | $2,174 | |||||||||
Eurodollar (12/14) | 31 | $31,000,000 | 1,894 | |||||||||
Eurodollar (03/15) | 131 | 131,000,000 | 83,491 | |||||||||
Eurodollar (06/15) | 240 | 240,000,000 | 128,777 | |||||||||
|
| |||||||||||
216,336 | ||||||||||||
|
| |||||||||||
Short Futures Outstanding | ||||||||||||
Euro-Bund 10-Year Notes (12/12) | 51 | EUR 51,000,000 | (31,783 | ) | ||||||||
|
| |||||||||||
Total Futures Contracts | $184,553 | |||||||||||
|
|
(i) | Forward foreign currency contracts outstanding as of September 30, 2012 were as follows: |
Currency Purchased | Currency Sold | Expiration | Counterparty | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
BRL | 204,530 | USD | 100,036 | 12/12 | BRC | $36 | ||||||||||||||||
BRL | 1,434,300 | USD | 701,518 | 12/12 | HSB | 1,518 | ||||||||||||||||
BRL | 204,370 | USD | 99,958 | 12/12 | MSC | (42 | ) | |||||||||||||||
BRL | 2,043,600 | USD | 999,527 | 12/12 | UBS | (473 | ) | |||||||||||||||
BRL | 615,900 | USD | 301,237 | 12/12 | UBS | 1,237 | ||||||||||||||||
CAD | 449,000 | USD | 455,838 | 12/12 | CIT | (3,011 | ) | |||||||||||||||
CNY | 10,222,705 | USD | 1,609,457 | 02/13 | DUB | (3,721 | ) | |||||||||||||||
EUR | 102,000 | USD | 131,081 | 10/12 | CIT | (27 | ) | |||||||||||||||
EUR | 501,000 | USD | 644,381 | 12/12 | HSB | (200 | ) | |||||||||||||||
GBP | 231,000 | USD | 372,938 | 12/12 | JPM | (1,741 | ) | |||||||||||||||
MXN | 7,759,650 | USD | 598,810 | 12/12 | GSC | (1,190 | ) | |||||||||||||||
MXN | 251,772 | USD | 19,429 | 12/12 | HSB | 836 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-17
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Currency Purchased | Currency Sold | Expiration | Counterparty | Unrealized Appreciation (Depreciation) | ||||||||||||||||
MXN | 12,915,250 | USD | 996,666 | 12/12 | MSC | ($3,334 | ) | |||||||||||||
MXN | 19,377,280 | USD | 1,495,339 | 12/12 | UBS | (4,661 | ) | |||||||||||||
MXN | 377,029 | USD | 29,095 | 12/12 | UBS | 1,231 | ||||||||||||||
USD | 7,090,355 | CAD | 6,984,000 | 12/12 | CIT | 120,238 | ||||||||||||||
USD | 6,390,862 | CAD | 6,295,000 | 12/12 | DUB | 55,173 | ||||||||||||||
USD | 316,918 | CNY | 2,012,955 | 02/13 | BRC | 2,041 | ||||||||||||||
USD | 1,292,538 | CNY | 8,209,750 | 02/13 | UBS | 7,462 | ||||||||||||||
USD | 370,989 | DKK | 2,150,000 | 11/12 | BRC | (10,305 | ) | |||||||||||||
USD | 370,816 | DKK | 2,149,000 | 11/12 | DUB | (10,107 | ) | |||||||||||||
USD | 228,196 | EUR | 177,570 | 10/12 | JPM | 1,804 | ||||||||||||||
USD | 246,949 | EUR | 192,000 | 12/12 | BRC | 178 | ||||||||||||||
USD | 10,509,460 | EUR | 8,171,000 | 12/12 | HSB | (207,028 | ) | |||||||||||||
USD | 92,606 | EUR | 72,000 | 12/12 | JPM | 464 | ||||||||||||||
USD | 3,214,189 | EUR | 2,499,000 | 12/12 | RBC | (15,107 | ) | |||||||||||||
USD | 2,002,598 | EUR | 1,557,000 | 12/12 | RBS | 16,800 | ||||||||||||||
USD | 2,316,327 | EUR | 1,800,000 | 01/13 | UBS | (106,520 | ) | |||||||||||||
USD | 1,158,518 | EUR | 900,000 | 02/13 | UBS | (25,503 | ) | |||||||||||||
USD | 8,381,277 | EUR | 6,500,000 | 08/13 | DUB | (194,658 | ) | |||||||||||||
USD | 386,976 | EUR | 300,000 | 09/13 | UBS | (8,265 | ) | |||||||||||||
USD | 6,017,198 | EUR | 4,663,949 | 09/13 | UBS | 108,782 | ||||||||||||||
USD | 129,304 | EUR | 100,000 | 04/14 | CIT | (2,569 | ) | |||||||||||||
USD | 1,128,502 | GBP | 699,000 | 12/12 | JPM | 3,097 | ||||||||||||||
USD | 7,678,398 | GBP | 4,755,000 | 12/12 | RBS | (74,379 | ) | |||||||||||||
USD | 26,917,881 | JPY | 2,100,000,000 | 11/12 | RBC | (113,708 | ) | |||||||||||||
USD | 2,339,875 | JPY | 182,474,000 | 12/12 | BRC | (11,436 | ) | |||||||||||||
USD | 407 | SGD | 500 | 10/12 | RBS | (10 | ) | |||||||||||||
|
| |||||||||||||||||||
Total Forward Foreign Currency Contracts | ($477,098 | ) | ||||||||||||||||||
|
|
(j) | Transactions in written options for the six-month period ended September 30, 2012 were as follows: |
Number of Contracts | Notional Amount in EUR | Notional Amount in $ | Premium | |||||||||||||
Outstanding, March 31,2012 | — | — | 139,900,000 | $1,383,751 | ||||||||||||
Call Options Written | 47 | 1,000,000 | 30,600,000 | 83,945 | ||||||||||||
Put Options Written | 47 | 1,000,000 | 62,700,000 | 225,107 | ||||||||||||
Call Options Expired | (47 | ) | — | — | (13,148 | ) | ||||||||||
Put Options Expired | (47 | ) | — | (136,700,000 | ) | (1,301,295 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Outstanding, September 30,2012 | — | 2,000,000 | 96,500,000 | $378,360 | ||||||||||||
|
|
|
|
|
|
|
|
(k) | Premiums received and value of written options outstanding as of September 30, 2012 were as follows: |
Inflation Floor/Cap Options
Description | Strike Index | Exercise Index | Expiration Date | Counter- party | Notional Amount | Premium | Value | |||||||||||||||||
Floor - OTC U.S. CPI Urban Consumers NSA | 215.95 | Maximum of ((1 + 0.00%)10 - | 03/12/20 | CIT | $1,200,000 | $10,320 | ($1,696 | ) | ||||||||||||||||
Floor - OTC U.S. CPI Urban Consumers NSA | 217.97 | Maximum of ((1 + 0.00%)10 - | 09/29/20 | CIT | 600,000 | 7,740 | (910 | ) | ||||||||||||||||
|
|
|
| |||||||||||||||||||||
$18,060 | ($2,606 | ) | ||||||||||||||||||||||
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-18
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Interest Rate Swaptions
Description | Pay/Receive Floating Rate Based on 3-Month USD-LIBOR | Exercise Rate | Expiration Date | Counter- party | Notional Amount | Premium | Value | |||||||||||||||||
Call - OTC 5-Year Interest Rate Swap | Receive | 0.850% | 10/11/12 | CIT | $2,500,000 | $8,125 | ($9,419 | ) | ||||||||||||||||
Call - OTC 5-Year Interest Rate Swap | Receive | 0.850% | 10/11/12 | RBS | 17,200,000 | 30,215 | (64,804 | ) | ||||||||||||||||
Call - OTC 5-Year Interest Rate Swap | Receive | 0.850% | 10/11/12 | UBS | 1,900,000 | 5,890 | (7,158 | ) | ||||||||||||||||
Call - OTC 5-Year Interest Rate Swap | Receive | 0.900% | 10/11/12 | CIT | 1,300,000 | 4,566 | (7,740 | ) | ||||||||||||||||
Call - OTC 5-Year Interest Rate Swap | Receive | 0.900% | 10/11/12 | MSC | 2,700,000 | 9,315 | (16,075 | ) | ||||||||||||||||
Call - OTC 7-Year Interest Rate Swap | Receive | 1.200% | 10/11/12 | MSC | 2,700,000 | 4,725 | (7,175 | ) | ||||||||||||||||
Call - OTC 7-Year Interest Rate Swap | Receive | 1.150% | 11/19/12 | DUB | 2,300,000 | 3,680 | (7,195 | ) | ||||||||||||||||
Call - OTC 5-Year Interest Rate Swap | Receive | 1.400% | 03/18/13 | MSC | 2,400,000 | 22,440 | (59,759 | ) | ||||||||||||||||
Based on 3-Month EUR-LIBOR | ||||||||||||||||||||||||
Call - OTC 5-Year Interest Rate Swap | Receive | 0.900% | 01/21/13 | CIT | EUR 1,000,000 | 4,281 | (3,719 | ) | ||||||||||||||||
|
|
|
| |||||||||||||||||||||
93,237 | (183,044 | ) | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Based on 3-Month USD-LIBOR | ||||||||||||||||||||||||
Put - OTC 5-Year Interest Rate Swap | Pay | 0.850% | 10/11/12 | CIT | $2,500,000 | 8,125 | (1,040 | ) | ||||||||||||||||
Put - OTC 5-Year Interest Rate Swap | Pay | 0.850% | 10/11/12 | RBS | 2,600,000 | 8,125 | (1,082 | ) | ||||||||||||||||
Put - OTC 5-Year Interest Rate Swap | Pay | 0.850% | 10/11/12 | UBS | 1,900,000 | 5,890 | (790 | ) | ||||||||||||||||
Put - OTC 5-Year Interest Rate Swap | Pay | 0.900% | 10/11/12 | CIT | 1,300,000 | 4,566 | (180 | ) | ||||||||||||||||
Put - OTC 5-Year Interest Rate Swap | Pay | 0.900% | 10/11/12 | MSC | 2,700,000 | 9,315 | (374 | ) | ||||||||||||||||
Put - OTC 5-Year Interest Rate Swap | Pay | 1.200% | 10/11/12 | RBS | 14,600,000 | 20,275 | (2 | ) | ||||||||||||||||
Put - OTC 7-Year Interest Rate Swap | Pay | 1.600% | 10/11/12 | MSC | 2,700,000 | 7,830 | (9 | ) | ||||||||||||||||
Put - OTC 2-Year Interest Rate Swap | Pay | 0.915% | 11/14/12 | CIT | 900,000 | 4,050 | (7 | ) | ||||||||||||||||
Put - OTC 2-Year Interest Rate Swap | Pay | 0.915% | 11/14/12 | MSC | 6,500,000 | 17,961 | (48 | ) | ||||||||||||||||
Put - OTC 7-Year Interest Rate Swap | Pay | 1.550% | 11/19/12 | DUB | 2,300,000 | 5,405 | (2,304 | ) | ||||||||||||||||
Put - OTC 1-Year Interest Rate Swap | Pay | 1.750% | 11/19/12 | RBS | 5,400,000 | 20,386 | (1 | ) | ||||||||||||||||
Put - OTC 5-Year Interest Rate Swap | Pay | 1.200% | 03/18/13 | MSC | 9,100,000 | 48,779 | (22,692 | ) | ||||||||||||||||
Put - OTC 5-Year Interest Rate Swap | Pay | 1.400% | 03/18/13 | MSC | 2,400,000 | 46,560 | (3,239 | ) | ||||||||||||||||
Put - OTC 5-Year Interest Rate Swap | Pay | 2.000% | 03/18/13 | DUB | 2,300,000 | 21,585 | (515 | ) | ||||||||||||||||
Put - OTC 2-Year Interest Rate Swap | Pay | 1.200% | 07/11/13 | DUB | 4,500,000 | 31,760 | (1,416 | ) | ||||||||||||||||
Based on 3-Month EUR-LIBOR | ||||||||||||||||||||||||
Put - OTC 5-Year Interest Rate Swap | Pay | 1.100% | 01/21/13 | CIT | EUR 1,000,000 | 6,451 | (6,738 | ) | ||||||||||||||||
|
|
|
| |||||||||||||||||||||
267,063 | (40,437 | ) | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
$360,300 | ($223,481 | ) | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total Written Options | $378,360 | ($226,087 | ) | |||||||||||||||||||||
|
|
|
|
(l) | Swap agreements outstanding as of September 30, 2012 were as follows: |
Credit Default Swaps on Corporate and Sovereign Issues - Sell Protection (1)
Referenced Obligation | Fixed Deal Receive Rate | Expiration Date | Counter- party | Implied Credit Spread at 09/30/12 (3) | Notional Amount (4) | Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||
Brazil Government Bond | 1.000% | 12/20/12 | BRC | 0.272% | $1,700,000 | $3,369 | $2,600 | $769 | ||||||||||||||||||||||
General Electric Capital Corp | 4.000% | 12/20/13 | CIT | 0.412% | 200,000 | 9,093 | — | 9,093 | ||||||||||||||||||||||
General Electric Capital Corp r | 4.230% | 12/20/13 | DUB | 0.412% | 200,000 | 9,674 | — | 9,674 | ||||||||||||||||||||||
General Electric Capital Corp | 4.325% | 12/20/13 | CIT | 0.412% | 200,000 | 9,915 | — | 9,915 | ||||||||||||||||||||||
General Electric Capital Corp | 4.400% | 12/20/13 | BRC | 0.412% | 200,000 | 10,123 | — | 10,123 | ||||||||||||||||||||||
General Electric Capital Corp | 4.500% | 12/20/13 | BRC | 0.412% | 300,000 | 15,535 | — | 15,535 | ||||||||||||||||||||||
General Electric Capital Corp | 4.700% | 12/20/13 | BRC | 0.412% | 400,000 | 21,725 | — | 21,725 | ||||||||||||||||||||||
General Electric Capital Corp r | 4.750% | 12/20/13 | DUB | 0.412% | 400,000 | 21,977 | — | 21,977 | ||||||||||||||||||||||
MetLife Inc | 1.000% | 12/20/14 | CIT | 1.084% | 1,800,000 | (2,808 | ) | (43,994 | ) | 41,186 | ||||||||||||||||||||
United Mexican States | 1.000% | 03/20/15 | BRC | 0.512% | 400,000 | 4,950 | (8,999 | ) | 13,949 | |||||||||||||||||||||
United Mexican States | 1.000% | 03/20/15 | CIT | 0.512% | 400,000 | 4,950 | (9,184 | ) | 14,134 | |||||||||||||||||||||
Japanese Government Bond | 1.000% | 03/20/15 | DUB | 0.365% | 1,000,000 | 16,038 | 11,616 | 4,422 | ||||||||||||||||||||||
United Mexican States | 1.000% | 03/20/15 | DUB | 0.512% | 200,000 | 2,475 | (4,592 | ) | 7,067 | |||||||||||||||||||||
Brazil Government Bond | 1.000% | 06/20/15 | DUB | 0.662% | 1,000,000 | 9,487 | (10,975 | ) | 20,462 | |||||||||||||||||||||
United Kingdom Index-Linked Treasury Gilt | 1.000% | 06/20/15 | GSC | 0.197% | 1,100,000 | 24,488 | 10,164 | 14,324 | ||||||||||||||||||||||
Brazil Government Bond | 1.000% | 06/20/15 | HSB | 0.662% | 1,000,000 | 9,487 | (10,975 | ) | 20,462 | |||||||||||||||||||||
Brazil Government Bond | 1.000% | 09/20/15 | BRC | 0.704% | 1,000,000 | 9,085 | (7,735 | ) | 16,820 | |||||||||||||||||||||
United Mexican States | 1.000% | 09/20/15 | BRC | 0.601% | 1,000,000 | 12,158 | (7,735 | ) | 19,893 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-19
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Referenced Obligation | Fixed Deal Receive Rate | Expiration Date | Counter- party | Implied Credit Spread at 09/30/12 (3) | Notional Amount (4) | Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||
Brazil Government Bond | 1.000% | 09/20/15 | HSB | 0.704% | $600,000 | $5,451 | ($5,961 | ) | $11,412 | |||||||||||||||||||||
Brazil Government Bond | 1.000% | 09/20/15 | UBS | 0.704% | 500,000 | 4,543 | (4,731 | ) | 9,274 | |||||||||||||||||||||
France Government Bond OAT | 0.250% | 12/20/15 | RBS | 0.597% | 700,000 | (7,733 | ) | (13,898 | ) | 6,165 | ||||||||||||||||||||
MetLife Inc | 1.000% | 12/20/15 | CIT | 1.496% | 800,000 | (12,257 | ) | (29,083 | ) | 16,826 | ||||||||||||||||||||
United Kingdom Index-Linked Treasury Gilt | 1.000% | 12/20/15 | GSC | 0.229% | 1,200,000 | 30,241 | 27,797 | 2,444 | ||||||||||||||||||||||
General Electric Capital Corp | 1.000% | 12/20/15 | MSC | 1.000% | 500,000 | 152 | (9,796 | ) | 9,948 | |||||||||||||||||||||
France Government Bond OAT | 0.250% | 03/20/16 | RBS | 0.688% | 2,900,000 | (43,520 | ) | (89,270 | ) | 45,750 | ||||||||||||||||||||
China Government Bond | 1.000% | 03/20/16 | BRC | 0.510% | 1,000,000 | 17,262 | 11,950 | 5,312 | ||||||||||||||||||||||
United Mexican States | 1.000% | 03/20/16 | BRC | 0.689% | 100,000 | 1,104 | (768 | ) | 1,872 | |||||||||||||||||||||
Brazil Government Bond | 1.000% | 03/20/16 | CIT | 0.791% | 2,300,000 | 17,263 | (16,240 | ) | 33,503 | |||||||||||||||||||||
Republic of Kazakhstan Debt | 1.000% | 03/20/16 | CIT | 1.262% | 300,000 | (2,602 | ) | (8,658 | ) | 6,056 | ||||||||||||||||||||
United Mexican States | 1.000% | 03/20/16 | CIT | 0.689% | 1,100,000 | 12,135 | (8,978 | ) | 21,113 | |||||||||||||||||||||
United Mexican States | 1.000% | 03/20/16 | DUB | 0.689% | 700,000 | 7,722 | (5,135 | ) | 12,857 | |||||||||||||||||||||
Berkshire Hathaway Finance Corp r | 1.000% | 06/20/16 | CIT | 0.983% | 900,000 | 839 | (2,156 | ) | 2,995 | |||||||||||||||||||||
Brazil Government Bond | 1.000% | 06/20/16 | CIT | 0.837% | 700,000 | 4,423 | (2,363 | ) | 6,786 | |||||||||||||||||||||
France Government Bond OAT | 0.250% | 09/20/16 | HSB | 0.835% | 400,000 | (9,156 | ) | (17,549 | ) | 8,393 | ||||||||||||||||||||
China Government Bond | 1.000% | 09/20/16 | DUB | 0.611% | 400,000 | 6,246 | 2,210 | 4,036 | ||||||||||||||||||||||
Brazil Government Bond | 1.000% | 09/20/16 | GSC | 0.877% | 200,000 | 1,028 | (1,217 | ) | 2,245 | |||||||||||||||||||||
South Korea Government Bond | 1.000% | 09/20/16 | HSB | 0.600% | 100,000 | 1,607 | (218 | ) | 1,825 | |||||||||||||||||||||
China Government Bond | 1.000% | 09/20/16 | MSC | 0.611% | 400,000 | 6,246 | 2,019 | 4,227 | ||||||||||||||||||||||
China Government Bond | 1.000% | 09/20/16 | UBS | 0.611% | 300,000 | 4,685 | 1,557 | 3,128 | ||||||||||||||||||||||
Indonesia Government Bond | 1.000% | 09/20/16 | UBS | 1.064% | 100,000 | (218 | ) | (1,578 | ) | 1,360 | ||||||||||||||||||||
United Kingdom Index-Linked Treasury Gilt | 1.000% | 12/20/16 | CIT | 0.364% | 2,000,000 | 54,133 | 7,916 | 46,217 | ||||||||||||||||||||||
United Kingdom Index-Linked Treasury Gilt | 1.000% | 12/20/16 | GSC | 0.364% | 1,400,000 | 37,894 | 4,152 | 33,742 | ||||||||||||||||||||||
Ally Financial Inc | 5.000% | 12/20/16 | DUB | 3.189% | 300,000 | 21,231 | (3,675 | ) | 24,906 | |||||||||||||||||||||
United Mexican States | 1.000% | 06/20/17 | BRC | 0.927% | 400,000 | 1,478 | (4,897 | ) | 6,375 | |||||||||||||||||||||
Australian Government | 1.000% | 06/20/17 | CIT | 0.499% | 1,300,000 | 30,855 | 14,784 | 16,071 | ||||||||||||||||||||||
Brazil Government Bond | 1.000% | 06/20/17 | CIT | 1.026% | 1,600,000 | (1,435 | ) | (21,914 | ) | 20,479 | ||||||||||||||||||||
South Korea Government Bond | 1.000% | 06/20/17 | CIT | 0.755% | 400,000 | 4,661 | (3,926 | ) | 8,587 | |||||||||||||||||||||
Brazil Government Bond | 1.000% | 06/20/17 | DUB | 1.026% | 1,300,000 | (1,166 | ) | (14,173 | ) | 13,007 | ||||||||||||||||||||
Indonesia Government Bond | 1.000% | 06/20/17 | DUB | 1.337% | 200,000 | (3,019 | ) | (5,884 | ) | 2,865 | ||||||||||||||||||||
South Korea Government Bond | 1.000% | 06/20/17 | DUB | 0.755% | 400,000 | 4,661 | (4,653 | ) | 9,314 | |||||||||||||||||||||
Russian Federation | 1.000% | 06/20/17 | GSC | 1.395% | 100,000 | (1,781 | ) | (6,901 | ) | 5,120 | ||||||||||||||||||||
United Mexican States | 1.000% | 06/20/17 | GSC | 0.927% | 100,000 | 370 | (1,127 | ) | 1,497 | |||||||||||||||||||||
South Korea Government Bond | 1.000% | 06/20/17 | HSB | 0.755% | 300,000 | 3,496 | (2,872 | ) | 6,368 | |||||||||||||||||||||
United Mexican States | 1.000% | 06/20/17 | HSB | 0.927% | 400,000 | 1,478 | (4,702 | ) | 6,180 | |||||||||||||||||||||
Japanese Government Bond r | 1.000% | 06/20/17 | MSC | 0.767% | 1,200,000 | 13,355 | (1,786 | ) | 15,141 | |||||||||||||||||||||
Japanese Government Bond | 1.000% | 06/20/17 | MSC | 0.767% | 800,000 | 8,880 | 4,290 | 4,590 | ||||||||||||||||||||||
United Mexican States | 1.000% | 06/20/17 | MSC | 0.927% | 1,000,000 | 3,696 | (7,846 | ) | 11,542 | |||||||||||||||||||||
China Government Bond | 1.000% | 06/20/17 | UBS | 0.778% | 3,300,000 | 35,039 | (19,234 | ) | 54,273 | |||||||||||||||||||||
Indonesia Government Bond | 1.000% | 06/20/17 | UBS | 1.337% | 800,000 | (12,076 | ) | (24,192 | ) | 12,116 | ||||||||||||||||||||
South Korea Government Bond | 1.000% | 06/20/17 | UBS | 0.755% | 900,000 | 10,487 | (9,272 | ) | 19,759 | |||||||||||||||||||||
Reynolds American Inc | 1.280% | 06/20/17 | DUB | 0.942% | 200,000 | 3,201 | — | 3,201 | ||||||||||||||||||||||
China Government Bond r | 1.000% | 09/20/17 | CIT | 0.831% | 100,000 | 854 | (1,377 | ) | 2,231 | |||||||||||||||||||||
MetLife Inc | 1.000% | 03/20/18 | DUB | 1.980% | 1,200,000 | (59,406 | ) | (68,165 | ) | 8,759 | ||||||||||||||||||||
United Mexican States | 1.000% | 03/20/21 | CIT | 1.324% | 100,000 | (2,494 | ) | (4,247 | ) | 1,753 | ||||||||||||||||||||
Indonesia Government Bond | 1.000% | 06/20/21 | BRC | 2.036% | 1,500,000 | (117,517 | ) | (95,221 | ) | (22,296 | ) | |||||||||||||||||||
United Mexican States | 1.000% | 06/20/21 | BRC | 1.337% | 1,200,000 | (31,930 | ) | (34,805 | ) | 2,875 | ||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
$242,127 | ($561,602 | ) | $803,729 | |||||||||||||||||||||||||||
|
|
|
|
|
|
Credit Default Swaps on Credit Indices—Buy Protection (2)
Referenced Obligation | Fixed Deal Pay Rate | Expiration Date | Counter- party | Notional Amount (4) | Value (5) | Upfront Premiums Paid (Received) | Unrealized Appreciation | |||||||||||||||||||
OTC - Dow Jones iTraxx 17SEN2 BP | 1.000% | 06/20/17 | BRC | EUR 1,400,000 | $92,745 | $91,912 | $833 | |||||||||||||||||||
OTC - Dow Jones iTraxx 17SEN2 BP | 1.000% | 06/20/17 | CIT | 200,000 | 13,249 | 13,130 | 119 | |||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||
$105,994 | $105,042 | $952 | ||||||||||||||||||||||||
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-20
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Credit Default Swaps on Credit Indices—Sell Protection (1)
Referenced Obligation | Fixed Deal Receive Rate | Expiration Date | Counter- party | Notional Amount (4) | Value (5) | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | |||||||||||||||||||
OTC - Dow Jones CDX NA HY-9 5Y r | 2.080% | 12/20/12 | BOA | $1,412,625 | $7,323 | $— | $7,323 | |||||||||||||||||||
OTC - Dow Jones CDX NA EM13 5Y | 5.000% | 06/20/15 | BRC | 2,600,000 | 228,290 | 174,200 | 54,090 | |||||||||||||||||||
OTC - Dow Jones CDX NA EM13 5Y | 5.000% | 06/20/15 | DUB | 900,000 | 79,023 | 117,500 | (38,477 | ) | ||||||||||||||||||
OTC - Dow Jones CDX NA EM13 5Y | 5.000% | 06/20/15 | HSB | 1,200,000 | 105,364 | 135,550 | (30,186 | ) | ||||||||||||||||||
OTC - Dow Jones CDX NA EM13 5Y | 5.000% | 06/20/15 | MSC | 900,000 | 79,023 | 101,250 | (22,227 | ) | ||||||||||||||||||
OTC - Dow Jones CDX NA EM14 5Y | 5.000% | 12/20/15 | CIT | 200,000 | 19,960 | 27,650 | (7,690 | ) | ||||||||||||||||||
OTC - Dow Jones CDX NA EM14 5Y | 5.000% | 12/20/15 | DUB | 600,000 | 59,880 | 74,750 | (14,870 | ) | ||||||||||||||||||
OTC - Dow Jones CDX NA EM14 5Y | 5.000% | 12/20/15 | MSC | 400,000 | 39,920 | 52,000 | (12,080 | ) | ||||||||||||||||||
CME - Dow Jones CDX NA IG-17 5Y | 1.000% | 12/20/16 | CME | 40,700,000 | (338,778 | ) | 694,915 | (1,033,693 | ) | |||||||||||||||||
OTC - Dow Jones CDX NA IG-9 10Y | 0.548% | 12/20/17 | GSC | 96,450 | 1,465 | — | 1,465 | |||||||||||||||||||
CMBX.NA | 0.080% | 12/13/49 | DUB | 200,000 | (11,926 | ) | (11,625 | ) | (301 | ) | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||
$269,544 | $1,366,190 | ($1,096,646 | ) | |||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||
Total Credit Default Swaps | $617,665 | $909,630 | ($291,965 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
(1) | 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 investments comprising the referenced index or (ii) pay a net settlement amount in the form of cash or investments equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying investments comprising the referenced index. |
(2) | 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 investments comprising the referenced index or (ii) receive a net settlement amount in the form of cash or investments equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying investments comprising the referenced index. |
(3) | An implied credit spread is the spread in yield between a U.S. Treasury security and the referenced obligation or underlying investment that are identical in all respects except for the quality rating. 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 pay as a seller of credit protection or receive as a buyer of credit 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 credit indices serve as an indicator of the current status of the payment/performance risk and is a representation of the likelihood of an expected liability (or profit) for the credit derivative had 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
Floating Rate Index | Counter- party | Pay /Receive Floating Rate | Fixed Rate | Expiration Date | Notional Amount | Value | Upfront Premiums Paid (Received) | Unrealized Appreciation | ||||||||||||||||||||
OTC - 28-Day Mexico Interbank TIIE Banxico | BRC | Pay | 5.600% | 09/06/16 | MXN 1,100,000 | $1,612 | $552 | $1,060 | ||||||||||||||||||||
OTC - 28-Day Mexico Interbank TIIE Banxico | HSB | Pay | 5.600% | 09/06/16 | 2,100,000 | 2,906 | 820 | 2,086 | ||||||||||||||||||||
OTC - 28-Day Mexico Interbank TIIE Banxico | MSC | Pay | 5.600% | 09/06/16 | 1,400,000 | 1,714 | 280 | 1,434 | ||||||||||||||||||||
OTC - 28-Day Mexico Interbank TIIE Banxico | GSC | Pay | 8.170% | 11/04/16 | 1,200,000 | 10,548 | 1,757 | 8,791 | ||||||||||||||||||||
OTC - 28-Day Mexico Interbank TIIE Banxico r | BRC | Pay | 5.500% | 09/13/17 | 13,000,000 | 32,692 | (10,195 | ) | 42,887 | |||||||||||||||||||
OTC - 28-Day Mexico Interbank TIIE Banxico r | HSB | Pay | 5.500% | 09/13/17 | 5,000,000 | 12,470 | (1,920 | ) | 14,390 | |||||||||||||||||||
OTC - 28-Day Mexico Interbank TIIE Banxico r | MSC | Pay | 5.500% | 09/13/17 | 3,000,000 | 7,512 | (1,453 | ) | 8,965 | |||||||||||||||||||
OTC - 28-Day Mexico Interbank TIIE Banxico r | BRC | Pay | 6.000% | 09/02/22 | 27,000,000 | 28,068 | (14,093 | ) | 42,161 | |||||||||||||||||||
CME - 3-Month USD-LIBOR | CME | Receive | 2.750% | 06/20/42 | $3,600,000 | (140,070 | ) | (317,381 | ) | 177,311 | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||
Total Interest Rate Swaps | ($42,548 | ) | ($341,633 | ) | $299,085 | |||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||
Total Swap Agreements | $575,117 | $567,997 | $7,120 | |||||||||||||||||||||||||
|
|
|
|
|
|
(m) | As of September 30, 2012, investments with total aggregate values of $423,706 and $981,663 were fully or partially segregated with the broker(s)/custodian as collateral for open futures and swap contracts, respectively. In addition, $13,000 and $6,000 in cash was segregated as collateral for open futures contracts and swap contracts, respectively. |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-21
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
(n) | Fair Value Measurements |
The following is a summary of the fund’s investments as categorized under the three-tier hierarchy of inputs used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at | Level 1 | Level 2 | Level 3 | |||||||||||||||
Assets | Convertible Preferred Stocks (1) | $3,714,000 | $3,714,000 | $��� | $— | |||||||||||||
Preferred Stocks (1) | 20,400 | 20,400 | — | — | ||||||||||||||
Corporate Bonds & Notes | 112,755,581 | — | 112,755,581 | — | ||||||||||||||
Senior Loan Notes | 1,962,000 | — | 1,962,000 | — | ||||||||||||||
Mortgage-Backed Securities | 320,540,204 | — | 320,459,454 | 80,750 | ||||||||||||||
Asset-Backed Securities | 24,659,149 | — | 24,659,149 | — | ||||||||||||||
U.S. Government Agency Issues | 62,162,278 | — | 62,162,278 | — | ||||||||||||||
U.S. Treasury Obligations | 135,906,311 | — | 135,906,311 | — | ||||||||||||||
Foreign Government Bonds & Notes | 30,149,298 | — | 30,149,298 | — | ||||||||||||||
Municipal Bonds | 24,382,747 | — | 24,382,747 | — | ||||||||||||||
Short-Term Investments | 46,308,085 | 884,900 | 45,423,185 | — | ||||||||||||||
Derivatives: | ||||||||||||||||||
Credit Contracts | ||||||||||||||||||
Swaps | 1,277,487 | — | 1,277,487 | — | ||||||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Forward Foreign Currency Contracts | 320,897 | — | 320,897 | — | ||||||||||||||
Interest Rate Contracts | ||||||||||||||||||
Futures | 216,336 | 216,336 | — | — | ||||||||||||||
Swaps | 97,522 | — | 97,522 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Interest Rate Contracts | 313,858 | 216,336 | 97,522 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Assets - Derivatives | 1,912,242 | 216,336 | 1,695,906 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Assets | 764,472,295 | 4,835,636 | 759,555,909 | 80,750 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Liabilities | Securities Sold Short | |||||||||||||||||
Mortgage-Backed Securities | (11,718,125 | ) | — | (11,718,125 | ) | — | ||||||||||||
Derivatives: | ||||||||||||||||||
Credit Contracts | ||||||||||||||||||
Swaps | (659,822 | ) | — | (659,822 | ) | — | ||||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Forward Foreign Currency Contracts | (797,995 | ) | — | (797,995 | ) | — | ||||||||||||
Interest Rate Contracts | ||||||||||||||||||
Futures | (31,783 | ) | (31,783 | ) | — | — | ||||||||||||
Written Options | (226,087 | ) | — | (223,481 | ) | (2,606 | ) | |||||||||||
Swaps | (140,070 | ) | — | (140,070 | ) | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Interest Rate Contracts | (397,940 | ) | (31,783 | ) | (363,551 | ) | (2,606 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities - Derivatives | (1,855,757 | ) | (31,783 | ) | (1,821,368 | ) | (2,606 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities | (13,573,882 | ) | (31,783 | ) | (13,539,493 | ) | (2,606 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $750,898,413 | $4,803,853 | $746,016,416 | $78,144 | ||||||||||||||
|
|
|
|
|
|
|
|
The following is a reconciliation of investments for significant unobservable inputs (Level 3) used in valuing the fund's assets and liabilities (See Note 3D in Notes to Financial Statements) for the six-month period ended September 30, 2012:
Liabilities Derivatives | ||||||||||||||||
Corporate Bonds & Notes | Mortgage-Backed Securities | Interest Rate Contracts | ||||||||||||||
Written Options | Total | |||||||||||||||
Value, Beginning of Period | $3,001 | $75,300 | ($2,956 | ) | $75,345 | |||||||||||
Purchases | — | — | — | — | ||||||||||||
Sales (including paydowns) | — | — | — | — | ||||||||||||
Accrued Discounts (Premiums) | — | — | — | — | ||||||||||||
Net Realized Gains (Losses) | — | — | — | — | ||||||||||||
Change in Net Unrealized Appreciation (Depreciation) | (3,001 | ) | 5,450 | 350 | 2,799 | |||||||||||
Transfers In | — | — | — | — | ||||||||||||
Transfers Out | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Value, End of Period | $— | $80,750 | ($2,606 | ) | $78,144 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Net Unrealized Appreciation (Depreciation) on | ($3,001 | ) | $5,450 | $350 | $2,799 | |||||||||||
|
|
|
|
|
|
|
|
(1) | For equity investments categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-22
PACIFIC LIFE FUNDS
PL SHORT DURATION BOND FUND
Schedule of Investments
September 30, 2012 (Unaudited)
Principal | Value | |||||||
CORPORATE BONDS & NOTES - 47.9% |
| |||||||
Consumer Discretionary - 2.9% |
| |||||||
CBS Corp | $120,000 | $123,174 | ||||||
Cox Communications Inc | ||||||||
5.450% due 12/15/14 | 500,000 | 550,237 | ||||||
7.125% due 10/01/12 | 325,000 | 325,000 | ||||||
DIRECTV Holdings LLC | ||||||||
3.550% due 03/15/15 | 200,000 | 211,947 | ||||||
4.750% due 10/01/14 | 850,000 | 912,070 | ||||||
Dollar General Corp | 340,000 | 357,000 | ||||||
DR Horton Inc | 325,000 | 347,750 | ||||||
Easton-Bell Sports Inc | 130,000 | 140,888 | ||||||
NBCUniversal Media LLC | 560,000 | 571,964 | ||||||
Speedway Motorsports Inc | 140,000 | 152,075 | ||||||
Staples Inc | 425,000 | 470,362 | ||||||
TCM Sub LLC | 1,060,000 | 1,116,344 | ||||||
The Interpublic Group of Cos Inc | 398,000 | 431,830 | ||||||
Thomson Reuters Corp (Canada) | 250,000 | 273,610 | ||||||
Time Warner Cable Inc | ||||||||
7.500% due 04/01/14 | 375,000 | 411,888 | ||||||
8.250% due 02/14/14 | 175,000 | 192,670 | ||||||
|
| |||||||
6,588,809 | ||||||||
|
| |||||||
Consumer Staples - 2.9% | ||||||||
Altria Group Inc | 668,000 | 725,123 | ||||||
Anheuser-Busch InBev Worldwide Inc | ||||||||
1.375% due 07/15/17 | 740,000 | 750,077 | ||||||
1.500% due 07/14/14 | 210,000 | 213,789 | ||||||
5.375% due 11/15/14 | 75,000 | 82,552 | ||||||
BAT International Finance PLC (United Kingdom) | ||||||||
1.400% due 06/05/15 ~ | 710,000 | 715,909 | ||||||
8.125% due 11/15/13 ~ | 150,000 | 161,425 | ||||||
Bunge Ltd Finance Corp | 1,060,000 | 1,112,778 | ||||||
Coca-Cola Amatil Ltd (Australia) | 400,000 | 416,368 | ||||||
Kraft Foods Group Inc | 315,000 | 319,980 | ||||||
Kraft Foods Inc | 275,000 | 278,246 | ||||||
Molson Coors Brewing Co | 255,000 | 262,884 | ||||||
Pernod-Ricard SA (France) | 510,000 | 532,726 | ||||||
Philip Morris International Inc | 510,000 | 522,035 | ||||||
SABMiller Holdings Inc | 530,000 | 542,795 | ||||||
|
| |||||||
6,636,687 | ||||||||
|
| |||||||
Energy - 5.2% | ||||||||
Anadarko Petroleum Corp | 345,000 | 416,481 | ||||||
Apache Corp | 115,000 | 118,906 | ||||||
BG Energy Capital PLC (United Kingdom) | 450,000 | 477,907 |
Principal | Value | |||||||
Bill Barrett Corp | $200,000 | $221,000 | ||||||
Canadian Natural Resources Ltd (Canada) | ||||||||
1.450% due 11/14/14 | 540,000 | 548,928 | ||||||
5.700% due 05/15/17 | �� | 455,000 | 541,446 | |||||
DCP Midstream LLC | 230,000 | 249,207 | ||||||
Devon Energy Corp | 175,000 | 178,623 | ||||||
Diamond Offshore Drilling Inc | 284,000 | 307,320 | ||||||
Ensco PLC (United Kingdom) | 500,000 | 533,977 | ||||||
Enterprise Products Operating LLC | ||||||||
1.250% due 08/13/15 | 125,000 | 126,328 | ||||||
5.600% due 10/15/14 | 316,000 | 345,446 | ||||||
6.375% due 02/01/13 | 100,000 | 101,739 | ||||||
Gazprom OAO Via Gaz Capital SA (Luxembourg) | 360,000 | 382,057 | ||||||
Kinder Morgan Energy Partners LP | ||||||||
3.500% due 03/01/16 | 85,000 | 91,213 | ||||||
5.125% due 11/15/14 | 140,000 | 152,122 | ||||||
Magellan Midstream Partners LP | 225,000 | 242,769 | ||||||
Noble Corp (Cayman) | 365,000 | 377,344 | ||||||
Noble Holding International Ltd (Cayman) | ||||||||
2.500% due 03/15/17 | 65,000 | 67,129 | ||||||
3.050% due 03/01/16 | 415,000 | 433,740 | ||||||
3.450% due 08/01/15 | 110,000 | 116,440 | ||||||
7.375% due 03/15/14 | 55,000 | 59,900 | ||||||
Occidental Petroleum Corp | ||||||||
1.450% due 12/13/13 | 500,000 | 505,894 | ||||||
1.750% due 02/15/17 | 305,000 | 316,182 | ||||||
Petrohawk Energy Corp | ||||||||
7.250% due 08/15/18 | 690,000 | 785,037 | ||||||
10.500% due 08/01/14 | 125,000 | 136,004 | ||||||
Phillips 66 | 290,000 | 296,906 | ||||||
Regency Energy Partners LP | 27,000 | 29,599 | ||||||
Rowan Cos Inc | 120,000 | 132,542 | ||||||
Talisman Energy Inc (Canada) | 455,000 | 492,907 | ||||||
Total Capital International SA (France) | 610,000 | 611,736 | ||||||
TransCanada PipeLines Ltd (Canada) | 120,000 | 121,191 | ||||||
Transocean Inc (Cayman) | ||||||||
2.500% due 10/15/17 | 250,000 | 251,741 | ||||||
5.050% due 12/15/16 | 130,000 | 145,436 | ||||||
5.250% due 03/15/13 | 708,000 | 722,117 | ||||||
Williams Partners LP | 405,000 | 429,660 | ||||||
Woodside Finance Ltd (Australia) | 705,000 | 748,141 | ||||||
|
| |||||||
11,815,115 | ||||||||
|
| |||||||
Financials - 20.5% | ||||||||
ACE INA Holdings Inc | 710,000 | 772,596 | ||||||
Aflac Inc | 75,000 | 78,788 | ||||||
Ally Financial Inc | ||||||||
4.625% due 06/26/15 | 150,000 | 153,923 | ||||||
6.750% due 12/01/14 | 220,000 | 236,500 | ||||||
American Express Centurion Bank | 250,000 | 250,501 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-23
PACIFIC LIFE FUNDS
PL SHORT DURATION BOND FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | Value | |||||||
American Express Credit Corp | $660,000 | $714,327 | ||||||
American Honda Finance Corp | 650,000 | 660,785 | ||||||
American International Group Inc | ||||||||
3.000% due 03/20/15 | 175,000 | 181,333 | ||||||
4.250% due 09/15/14 | 810,000 | 856,245 | ||||||
Anglo American Capital PLC (United Kingdom) | 250,000 | 251,661 | ||||||
ANZ National International Ltd (New Zealand) | 830,000 | 839,969 | ||||||
Bank of America Corp | 810,000 | 816,074 | ||||||
Barclays Bank PLC (United Kingdom) | 1,000,000 | 1,067,963 | ||||||
BB&T Corp | ||||||||
1.600% due 08/15/17 | 245,000 | 249,746 | ||||||
5.700% due 04/30/14 | 350,000 | 377,298 | ||||||
Berkshire Hathaway Inc | 630,000 | 662,724 | ||||||
Boston Properties LP | 470,000 | 514,258 | ||||||
Capital One Financial Corp | ||||||||
2.125% due 07/15/14 | 135,000 | 137,819 | ||||||
2.150% due 03/23/15 | 480,000 | 492,460 | ||||||
7.375% due 05/23/14 | 275,000 | 302,799 | ||||||
Caterpillar Financial Services Corp | 600,000 | 602,996 | ||||||
CIT Group Inc | 230,000 | 240,925 | ||||||
Citigroup Inc | ||||||||
0.722% due 11/05/14 § | 240,000 | 236,397 | ||||||
1.391% due 04/01/14 § | 344,000 | 343,771 | ||||||
Commonwealth Bank of Australia (Australia) | ||||||||
1.900% due 09/18/17 | 355,000 | 356,284 | ||||||
1.950% due 03/16/15 | 675,000 | 690,316 | ||||||
Daimler Finance North America LLC | ||||||||
0.972% due 03/28/14 ~ § | 500,000 | 501,129 | ||||||
1.875% due 09/15/14 ~ | 190,000 | 193,051 | ||||||
DNB Bank ASA (Norway) | 785,000 | 820,885 | ||||||
Fifth Third Bancorp | ||||||||
3.625% due 01/25/16 | 85,000 | 91,780 | ||||||
6.250% due 05/01/13 | 425,000 | 438,818 | ||||||
Fifth Third Bank | 250,000 | 249,714 | ||||||
Ford Motor Credit Co LLC | ||||||||
2.750% due 05/15/15 | 640,000 | 653,107 | ||||||
3.000% due 06/12/17 | 250,000 | 254,806 | ||||||
3.875% due 01/15/15 | 400,000 | 418,267 | ||||||
Franklin Resources Inc | 170,000 | 171,164 | ||||||
General Electric Capital Corp | ||||||||
1.090% due 04/07/14 § | 1,300,000 | 1,306,141 | ||||||
2.375% due 06/30/15 | 625,000 | 648,473 | ||||||
Harley-Davidson Financial Services Inc | 445,000 | 445,863 | ||||||
HSBC Finance Corp | 100,000 | 99,397 | ||||||
HSBC USA Inc | 785,000 | 808,575 | ||||||
Hyundai Capital America | 195,000 | 195,239 | ||||||
Hyundai Capital Services Inc (South Korea) | ||||||||
3.500% due 09/13/17 ~ | 200,000 | 209,417 | ||||||
4.375% due 07/27/16 ~ | 525,000 | 566,529 | ||||||
Intesa Sanpaolo SPA (Italy) | 275,000 | 271,748 |
Principal | Value | |||||||
JPMorgan Chase & Co | ||||||||
1.139% due 05/02/14 § | $515,000 | $518,875 | ||||||
2.000% due 08/15/17 | 1,000,000 | 1,010,112 | ||||||
KeyBank NA | 180,000 | 196,853 | ||||||
KeyCorp | 325,000 | 350,786 | ||||||
Kilroy Realty LP | 405,000 | 441,047 | ||||||
MassMutual Global Funding II | 450,000 | 452,325 | ||||||
MetLife Inc | 125,000 | 127,958 | ||||||
Metropolitan Life Global Funding I | ||||||||
1.700% due 06/29/15 ~ | 860,000 | 877,793 | ||||||
5.125% due 06/10/14 ~ | 250,000 | 268,241 | ||||||
Morgan Stanley | 1,425,000 | 1,430,233 | ||||||
National Australia Bank Ltd (Australia) | 325,000 | 325,774 | ||||||
National Rural Utilities Cooperative Finance Corp | 80,000 | 80,976 | ||||||
New York Life Global Funding | 580,000 | 605,573 | ||||||
Nissan Motor Acceptance Corp | 605,000 | 611,218 | ||||||
Nordea Bank AB (Sweden) | 760,000 | 768,717 | ||||||
PACCAR Financial Corp | 485,000 | 495,885 | ||||||
PNC Funding Corp | 350,000 | 372,075 | ||||||
Principal Financial Group Inc | 690,000 | 767,523 | ||||||
Principal Life Global Funding II | 560,000 | 561,497 | ||||||
Prudential Financial Inc | ||||||||
2.750% due 01/14/13 | 325,000 | 327,127 | ||||||
5.100% due 09/20/14 | 705,000 | 763,071 | ||||||
Regions Financial Corp | 200,000 | 215,246 | ||||||
Royal Bank of Canada (Canada) | 700,000 | 702,447 | ||||||
Royal Bank of Scotland Group PLC (United Kingdom) | 415,000 | 420,292 | ||||||
Simon Property Group LP | 515,000 | 548,742 | ||||||
SLM Corp | 1,010,000 | 1,025,903 | ||||||
Societe Generale SA (France) | 225,000 | 226,620 | ||||||
Sumitomo Mitsui Banking Corp (Japan) | 705,000 | 719,055 | ||||||
Sun Life Financial Global Funding III LP | 775,000 | 769,690 | ||||||
The Bank of New York Mellon Corp | 1,199,000 | 1,203,707 | ||||||
The Goldman Sachs Group Inc | 1,410,000 | 1,409,750 | ||||||
The Toronto-Dominion Bank (Canada) | ||||||||
0.628% due 07/26/13 § | 230,000 | 230,478 | ||||||
0.755% due 07/14/14 § | 235,000 | 236,237 | ||||||
Toyota Motor Credit Corp | 860,000 | 894,516 | ||||||
U.S. Bancorp | 645,000 | 677,856 | ||||||
UBS AG (Switzerland) | 400,000 | 401,754 | ||||||
Union Bank NA | 435,000 | 445,660 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-24
PACIFIC LIFE FUNDS
PL SHORT DURATION BOND FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | Value | |||||||
Ventas Realty LP | $650,000 | $677,927 | ||||||
Volkswagen International Finance NV (Netherlands) | 795,000 | 808,633 | ||||||
WEA Finance LLC | ||||||||
5.400% due 10/01/12 ~ | 375,000 | 375,000 | ||||||
5.750% due 09/02/15 ~ | 490,000 | 544,209 | ||||||
Wells Fargo & Co | ||||||||
1.250% due 02/13/15 | 700,000 | 708,817 | ||||||
2.100% due 05/08/17 | 615,000 | 637,107 | ||||||
Westpac Banking Corp (Australia) | 785,000 | 787,112 | ||||||
|
| |||||||
46,452,978 | ||||||||
|
| |||||||
Health Care - 3.4% | ||||||||
Agilent Technologies Inc | ||||||||
2.500% due 07/15/13 | 220,000 | 222,998 | ||||||
6.500% due 11/01/17 | 470,000 | 575,908 | ||||||
Baxter International Inc | 145,000 | 150,266 | ||||||
Boston Scientific Corp | 990,000 | 1,059,105 | ||||||
Cardinal Health Inc | ||||||||
1.900% due 06/15/17 | 270,000 | 275,102 | ||||||
5.500% due 06/15/13 | 505,000 | 521,489 | ||||||
Celgene Corp | 115,000 | 116,814 | ||||||
Express Scripts Holding Co | ||||||||
2.750% due 11/21/14 ~ | 615,000 | 638,970 | ||||||
3.125% due 05/15/16 | 350,000 | 373,619 | ||||||
6.250% due 06/15/14 | 100,000 | 108,984 | ||||||
Gilead Sciences Inc | 570,000 | 589,735 | ||||||
Life Technologies Corp | ||||||||
3.375% due 03/01/13 | 500,000 | 504,088 | ||||||
4.400% due 03/01/15 | 225,000 | 239,053 | ||||||
Takeda Pharmaceutical Co Ltd (Japan) | 650,000 | 655,530 | ||||||
UnitedHealth Group Inc | 155,000 | 160,316 | ||||||
Watson Pharmaceuticals Inc | ||||||||
1.875% due 10/01/17 | 385,000 | 389,840 | ||||||
5.000% due 08/15/14 | 365,000 | 391,852 | ||||||
WellPoint Inc | ||||||||
1.250% due 09/10/15 | 300,000 | 302,312 | ||||||
6.000% due 02/15/14 | 300,000 | 321,111 | ||||||
|
| |||||||
7,597,092 | ||||||||
|
| |||||||
Industrials - 1.8% | ||||||||
BAA Funding Ltd (United Kingdom) | 610,000 | 622,733 | ||||||
Casella Waste Systems Inc | 125,000 | 132,656 | ||||||
CSX Corp | 225,000 | 230,343 | ||||||
Delta Air Lines Inc | 125,000 | 136,250 | ||||||
ERAC USA Finance LLC | ||||||||
2.750% due 07/01/13 ~ | 915,000 | 928,180 | ||||||
2.750% due 03/15/17 ~ | 175,000 | 180,470 | ||||||
GATX Corp | 360,000 | 371,829 | ||||||
John Deere Capital Corp | 450,000 | 454,346 | ||||||
Roper Industries Inc | 150,000 | 157,589 | ||||||
Southwest Airlines Co | 315,000 | 338,376 | ||||||
United Air Lines Inc | 127,000 | 130,493 |
Principal | Value | |||||||
Waste Management Inc | ||||||||
5.000% due 03/15/14 | $150,000 | $159,039 | ||||||
6.375% due 11/15/12 | 250,000 | 251,693 | ||||||
|
| |||||||
4,093,997 | ||||||||
|
| |||||||
Information Technology - 1.5% | ||||||||
Altera Corp | 335,000 | 344,285 | ||||||
Broadcom Corp | ||||||||
1.500% due 11/01/13 | 150,000 | 151,755 | ||||||
2.375% due 11/01/15 | 200,000 | 209,788 | ||||||
Fiserv Inc | 740,000 | 778,956 | ||||||
Hewlett-Packard Co | ||||||||
2.350% due 03/15/15 | 220,000 | 224,305 | ||||||
2.600% due 09/15/17 | 300,000 | 301,359 | ||||||
2.625% due 12/09/14 | 300,000 | 308,127 | ||||||
HP Enterprise Services LLC | 375,000 | 390,952 | ||||||
Xerox Corp | ||||||||
1.257% due 05/16/14 § | 400,000 | 399,598 | ||||||
2.950% due 03/15/17 | 70,000 | 72,418 | ||||||
5.650% due 05/15/13 | 275,000 | 283,506 | ||||||
|
| |||||||
3,465,049 | ||||||||
|
| |||||||
Materials - 2.0% | ||||||||
ArcelorMittal (Luxembourg) | 375,000 | 384,639 | ||||||
Barrick Gold Corp (Canada) | 330,000 | 335,038 | ||||||
Barrick Gold Financeco LLC | 400,000 | 420,873 | ||||||
BHP Billiton Finance USA Ltd (Australia) | 315,000 | 318,341 | ||||||
CRH America Inc | 150,000 | 156,128 | ||||||
Eastman Chemical Co | 230,000 | 240,532 | ||||||
Ecolab Inc | 280,000 | 290,557 | ||||||
International Paper Co | 295,000 | 322,247 | ||||||
Rio Tinto Finance USA Ltd (Australia) | 640,000 | 721,274 | ||||||
Rock-Tenn Co | 495,000 | 506,028 | ||||||
Teck Resources Ltd (Canada) | 140,000 | 140,820 | ||||||
The Dow Chemical Co | 725,000 | 756,809 | ||||||
|
| |||||||
4,593,286 | ||||||||
|
| |||||||
Telecommunication Services - 4.0% | ||||||||
America Movil SAB de CV (Mexico) | ||||||||
2.375% due 09/08/16 | 275,000 | 287,591 | ||||||
3.625% due 03/30/15 | 200,000 | 213,847 | ||||||
American Tower Corp REIT | 915,000 | 986,317 | ||||||
AT&T Inc | ||||||||
0.875% due 02/13/15 | 310,000 | 312,864 | ||||||
1.700% due 06/01/17 | 410,000 | 422,810 | ||||||
British Telecommunications PLC (United Kingdom) | ||||||||
1.504% due 12/20/13 § | 255,000 | 256,755 | ||||||
5.150% due 01/15/13 | 350,000 | 354,579 | ||||||
CC Holdings GS V LLC | 195,000 | 209,138 | ||||||
Crown Castle Towers LLC | 550,000 | 584,965 | ||||||
Digicel Ltd (Bermuda) | 125,000 | 140,000 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-25
PACIFIC LIFE FUNDS
PL SHORT DURATION BOND FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | Value | |||||||
GTP Acquisition Partners I LLC | $190,000 | $201,055 | ||||||
Rogers Communications Inc (Canada) | 1,000,000 | 1,079,967 | ||||||
SBA Tower Trust | 715,000 | 739,316 | ||||||
Telecom Italia Capital SA (Luxembourg) | 565,000 | 584,069 | ||||||
Telefonica Emisiones SAU (Spain) | ||||||||
2.582% due 04/26/13 | 280,000 | 281,050 | ||||||
5.855% due 02/04/13 | 450,000 | 456,750 | ||||||
Verizon Virginia Inc | 790,000 | 804,624 | ||||||
Vivendi SA (France) | 305,000 | 309,238 | ||||||
Vodafone Group PLC (United Kingdom) | 780,000 | 782,181 | ||||||
|
| |||||||
9,007,116 | ||||||||
|
| |||||||
Utilities - 3.7% | ||||||||
Abu Dhabi National Energy Co (United Arab Emirates) | 450,000 | 450,563 | ||||||
CenterPoint Energy Resources Corp | 75,000 | 77,575 | ||||||
CMS Energy Corp | 375,000 | 382,306 | ||||||
Commonwealth Edison Co | ||||||||
1.625% due 01/15/14 | 450,000 | 456,113 | ||||||
1.950% due 09/01/16 | 120,000 | 124,446 | ||||||
Dominion Resources Inc | ||||||||
1.400% due 09/15/17 | 645,000 | 647,710 | ||||||
1.800% due 03/15/14 | 325,000 | 330,522 | ||||||
1.950% due 08/15/16 | 165,000 | 170,726 | ||||||
Duke Energy Corp | ||||||||
1.625% due 08/15/17 | 220,000 | 220,955 | ||||||
2.150% due 11/15/16 | 460,000 | 475,958 | ||||||
Enel Finance International NV (Netherlands) | ||||||||
3.875% due 10/07/14 ~ | 145,000 | 149,159 | ||||||
5.700% due 01/15/13 ~ | 250,000 | 252,187 | ||||||
Florida Gas Transmission Co LLC | 165,000 | 173,278 | ||||||
Georgia Power Co | 325,000 | 327,752 | ||||||
Great Plains Energy Inc | 225,000 | 228,180 | ||||||
Iberdrola Finance Ireland Ltd (Ireland) | 275,000 | 280,104 | ||||||
Korea Hydro & Nuclear Power Co Ltd (South Korea) | 275,000 | 288,254 | ||||||
MidAmerican Energy Holdings Co | 250,000 | 264,379 | ||||||
Mississippi Power Co | 120,000 | 125,746 | ||||||
NextEra Energy Capital Holdings Inc | 185,000 | 186,296 | ||||||
Nisource Finance Corp | ||||||||
5.400% due 07/15/14 | 260,000 | 278,865 | ||||||
6.150% due 03/01/13 | 334,000 | 341,108 | ||||||
PacifiCorp | 200,000 | 208,947 | ||||||
Progress Energy Inc | 150,000 | 161,078 | ||||||
PSEG Power LLC | 130,000 | 135,284 | ||||||
Sempra Energy | 450,000 | 452,147 | ||||||
Sierra Pacific Power Co | 242,000 | 252,633 | ||||||
Southern Co | 145,000 | 149,807 |
Principal | Value | |||||||
Veolia Environnement SA (France) | $250,000 | $256,223 | ||||||
Wisconsin Electric Power Co | 375,000 | 405,311 | ||||||
|
| |||||||
8,253,612 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes |
| 108,503,741 | ||||||
|
| |||||||
MORTGAGE-BACKED SECURITIES - 23.9% | ||||||||
Collateralized Mortgage Obligations - Commercial - 4.3% |
| |||||||
Banc of America Commercial Mortgage Trust | 930,000 | 1,074,847 | ||||||
Banc of America Merrill Lynch Commercial | 175,000 | 192,347 | ||||||
Bear Stearns Commercial Mortgage Securities | ||||||||
4.674% due 06/11/41 " | 150,000 | 164,023 | ||||||
4.715% due 02/11/41 " | 635,000 | 660,818 | ||||||
4.978% due 07/11/42 " § | 625,000 | 666,936 | ||||||
5.116% due 02/11/41 " § | 260,000 | 284,310 | ||||||
5.200% due 01/12/41 " § | 625,000 | 657,339 | ||||||
Citigroup Commercial Mortgage Trust | 305,000 | 324,683 | ||||||
Commercial Mortgage Pass-Through Certificates | ||||||||
1.156% due 12/10/44 " | 81,233 | 82,135 | ||||||
5.167% due 06/10/44 " § | 70,000 | 76,194 | ||||||
5.525% due 07/10/37 " § | 100,000 | 106,953 | ||||||
Credit Suisse First Boston Mortgage Securities Corp | 40,842 | 40,845 | ||||||
DBUBS Mortgage Trust | 137,585 | 141,447 | ||||||
Greenwich Capital Commercial Funding Corp | 145,000 | 168,488 | ||||||
GS Mortgage Securities Corp II | 320,000 | 364,282 | ||||||
JP Morgan Chase Commercial Mortgage | 60,543 | 61,131 | ||||||
4.719% due 01/15/38 " | 330,000 | 342,469 | ||||||
4.996% due 08/15/42 " § | 400,000 | 437,437 | ||||||
5.546% due 06/12/41 " § | 620,000 | 660,690 | ||||||
LB-UBS Commercial Mortgage Trust | ||||||||
4.954% due 09/15/30 " | 75,000 | 82,826 | ||||||
6.064% due 06/15/38 " § | 915,000 | 1,061,157 | ||||||
Merrill Lynch Countrywide Commercial Mortgage Trust | 645,000 | 748,726 | ||||||
Morgan Stanley Capital I | ||||||||
5.270% due 06/13/41 " § | 620,000 | 660,831 | ||||||
5.731% due 07/12/44 " § | 350,000 | 405,313 | ||||||
WF-RBS Commercial Mortgage Trust | 267,051 | 271,958 | ||||||
|
| |||||||
9,738,185 | ||||||||
|
| |||||||
Collateralized Mortgage Obligations - Residential - 4.0% |
| |||||||
Fannie Mae | ||||||||
0.667% due 07/25/42 " § | 938,684 | 945,051 | ||||||
5.000% due 08/25/19 " | 446,917 | 480,378 | ||||||
Fosse Master Issuer PLC (United Kingdom) | ||||||||
1.855% due 10/18/54 " § ~ | 424,673 | 433,522 | ||||||
Freddie Mac | ||||||||
0.671% due 05/15/36 " § | 66,515 | 67,200 | ||||||
0.721% due 08/15/41 " § | 449,658 | 454,630 | ||||||
0.721% due 07/15/42 " § | 1,063,192 | 1,073,223 | ||||||
Government National Mortgage Association | 2,494,965 | 2,521,343 | ||||||
Holmes Master Issuer PLC | 775,000 | 796,447 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-26
PACIFIC LIFE FUNDS
PL SHORT DURATION BOND FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | Value | |||||||
NCUA Guaranteed Notes | ||||||||
0.599% due 03/06/20 " § | $321,948 | $322,270 | ||||||
0.599% due 04/06/20 " § | 302,559 | 304,052 | ||||||
0.599% due 05/07/20 " § | 275,453 | 276,055 | ||||||
0.628% due 03/11/20 " § | 380,692 | 382,989 | ||||||
Silverstone Master Issuer PLC (United Kingdom) | ||||||||
2.003% due 01/21/55 " § ~ | 525,000 | 541,487 | ||||||
2.003% due 01/21/55 " § ~ | 150,000 | 152,637 | ||||||
Structured Adjustable Rate Mortgage Loan Trust | 278,067 | 276,952 | ||||||
|
| |||||||
9,028,236 | ||||||||
|
| |||||||
Fannie Mae - 13.2% | ||||||||
2.310% due 01/01/35 " § | 1,167,661 | 1,252,979 | ||||||
2.348% due 09/01/34 " § | 847,913 | 904,037 | ||||||
2.485% due 11/01/34 " § | 629,436 | 682,655 | ||||||
2.586% due 09/01/35 " § | 999,112 | 1,077,174 | ||||||
3.000% due 09/01/27 " | 1,881,886 | 1,999,546 | ||||||
3.500% due 01/01/26 - 01/01/27 " | 3,827,163 | 4,076,868 | ||||||
4.000% due 07/01/25 - 09/01/26 " | 3,633,460 | 3,890,206 | ||||||
4.500% due 04/01/24 - 09/01/25 " | 4,049,088 | 4,376,988 | ||||||
5.000% due 07/01/19 - 07/01/41 " | 3,636,100 | 3,968,481 | ||||||
5.500% due 01/01/35 - 12/01/39 " | 6,400,165 | 7,040,003 | ||||||
6.000% due 11/01/35 " | 477,238 | 531,865 | ||||||
|
| |||||||
29,800,802 | ||||||||
|
| |||||||
Freddie Mac - 1.8% | ||||||||
4.500% due 11/01/23 " | 2,610,022 | 2,800,792 | ||||||
5.000% due 11/01/16 - 04/01/18 " | 128,034 | 137,720 | ||||||
5.500% due 01/01/20 - 12/01/39 " | 1,095,781 | 1,195,431 | ||||||
|
| |||||||
4,133,943 | ||||||||
|
| |||||||
Government National Mortgage Association - 0.6% |
| |||||||
3.000% due 09/20/27 " | 1,340,000 | 1,441,158 | ||||||
|
| |||||||
Total Mortgage-Backed Securities |
| 54,142,324 | ||||||
|
| |||||||
ASSET-BACKED SECURITIES - 10.4% | ||||||||
Ally Auto Receivables Trust | 155,000 | 156,346 | ||||||
Ally Master Owner Trust | ||||||||
1.210% due 06/15/17 " | 1,060,000 | 1,066,185 | ||||||
2.150% due 01/15/16 " | 385,000 | 392,036 | ||||||
American Express Credit Account Master Trust | ||||||||
0.391% due 04/17/17 " § | 315,000 | 315,776 | ||||||
0.990% due 03/15/18 " | 440,000 | 441,682 | ||||||
1.290% due 03/15/18 " ~ | 500,000 | 501,222 | ||||||
AmeriCredit Automobile Receivables Trust | ||||||||
1.050% due 10/11/16 " | 270,000 | 272,554 | ||||||
1.170% due 05/09/16 " | 345,000 | 348,035 | ||||||
1.730% due 02/08/17 " | 200,000 | 202,715 | ||||||
2.330% due 03/08/16 " | 240,000 | 244,178 | ||||||
Bank of America Auto Trust | 560,000 | 563,365 | ||||||
BMW Vehicle Owner Trust | 255,000 | 256,093 | ||||||
Capital Auto Receivables Asset Trust | ||||||||
8.250% due 01/15/15 " ~ | 90,000 | 94,478 | ||||||
8.250% due 01/15/15 " ~ | 275,000 | 288,466 | ||||||
CarMax Auto Owner Trust | ||||||||
0.890% due 09/15/16 " | 380,000 | 382,945 | ||||||
0.910% due 12/15/15 " | 330,000 | 331,777 | ||||||
CIT Equipment Collateral | 245,000 | 245,857 | ||||||
CitiFinancial Auto Issuance Trust | 410,000 | 413,404 |
Principal | Value | |||||||
CNH Equipment Trust | ||||||||
0.570% due 12/15/17 " | $820,000 | $819,933 | ||||||
0.910% due 03/15/15 " | 300,000 | 301,230 | ||||||
0.940% due 05/15/17 " | 150,000 | 151,372 | ||||||
1.030% due 11/17/14 " | 16,447 | 16,481 | ||||||
5.170% due 10/15/14 " | 43,866 | 43,964 | ||||||
Ford Credit Auto Lease Trust | ||||||||
0.850% due 01/15/15 " | 210,000 | 210,988 | ||||||
1.100% due 12/15/15 " ~ | 100,000 | 99,991 | ||||||
1.500% due 03/15/17 " ~ | 125,000 | 124,974 | ||||||
Ford Credit Auto Owner Trust | ||||||||
0.580% due 12/15/16 " | 425,000 | 426,726 | ||||||
1.350% due 12/15/16 " | 435,000 | 442,490 | ||||||
1.510% due 01/15/14 " | 35,254 | 35,285 | ||||||
4.050% due 10/15/16 " | 100,000 | 105,204 | ||||||
6.070% due 05/15/14 " | 96,059 | 97,488 | ||||||
Ford Credit Floorplan Master Owner Trust | ||||||||
0.740% due 09/15/16 | 555,000 | 555,665 | ||||||
4.200% due 02/15/17 " ~ | 365,000 | 393,368 | ||||||
4.990% due 02/15/17 " ~ | 260,000 | 278,306 | ||||||
GE Capital Credit Card Master Note Trust | 535,000 | 540,754 | ||||||
GE Dealer Floorplan Master Note Trust | 270,000 | 271,124 | ||||||
GE Equipment Midticket LLC | 410,000 | 409,932 | ||||||
GE Equipment Small Ticket LLC | 135,000 | 135,737 | ||||||
Honda Auto Receivables Owner Trust | ||||||||
0.560% due 05/15/16 " | 1,030,000 | 1,034,355 | ||||||
0.770% due 01/15/16 " | 725,000 | 730,059 | ||||||
Huntington Auto Trust | ||||||||
0.810% due 09/15/16 " | 470,000 | 472,707 | ||||||
1.010% due 01/15/16 " ~ | 240,000 | 241,457 | ||||||
Hyundai Auto Receivables Trust | ||||||||
0.720% due 03/15/16 " | 205,000 | 206,093 | ||||||
0.810% due 03/15/18 " | 840,000 | 848,269 | ||||||
John Deere Owner Trust | 19,915 | 19,949 | ||||||
Mercedes-Benz Auto Lease Trust | ||||||||
0.880% due 11/17/14 " | 220,000 | 220,777 | ||||||
1.070% due 11/15/17 " | 180,000 | 180,801 | ||||||
Mercedes-Benz Auto Receivables Trust | 680,000 | 688,719 | ||||||
Motor PLC (United Kingdom) | 250,000 | 250,384 | ||||||
Nissan Auto Lease Trust | ||||||||
0.920% due 02/16/15 " | 375,000 | 377,774 | ||||||
1.040% due 08/15/14 " | 680,000 | 683,885 | ||||||
Nissan Auto Receivables Owner Trust | ||||||||
0.460% due 10/17/16 " | 555,000 | 555,928 | ||||||
0.730% due 05/16/16 " | 505,000 | 507,980 | ||||||
SMART Trust (Australia) | ||||||||
1.040% due 09/14/14 " ~ | 275,000 | 275,574 | ||||||
1.500% due 05/14/16 " ~ | 215,000 | 216,075 | ||||||
1.540% due 03/14/15 " ~ | 100,000 | 100,632 | ||||||
1.590% due 10/14/16 " ~ | 505,000 | 508,494 | ||||||
Toyota Auto Receivables Owner Trust | 790,000 | 794,231 | ||||||
Volkswagen Auto Loan Enhanced Trust | 245,000 | 246,725 | ||||||
Wheels SPV LLC | 285,000 | 285,911 | ||||||
World Financial Network Credit Card Master Trust | ||||||||
0.351% due 02/15/17 " § ~ | 1,100,000 | 1,099,754 | ||||||
World Omni Auto Receivables Trust | ||||||||
0.640% due 02/15/17 " | 865,000 | 869,726 | ||||||
5.120% due 05/15/14 " | 127,951 | 129,544 | ||||||
|
| |||||||
Total Asset-Backed Securities |
| 23,523,929 | ||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-27
PACIFIC LIFE FUNDS
PL SHORT DURATION BOND FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | Value | |||||||
U.S. GOVERNMENT AGENCY ISSUES - 5.2% | ||||||||
Fannie Mae | ||||||||
0.500% due 07/02/15 | $400,000 | $401,525 | ||||||
0.750% due 12/19/14 | 1,055,000 | 1,065,568 | ||||||
0.875% due 08/28/14 | 990,000 | 1,001,646 | ||||||
0.875% due 08/28/17 | 2,075,000 | 2,087,954 | ||||||
0.875% due 10/26/17 | 840,000 | 845,269 | ||||||
1.000% due 09/23/13 | 525,000 | 529,075 | ||||||
Federal Home Loan Bank | 3,125,000 | 3,135,213 | ||||||
Freddie Mac | ||||||||
0.500% due 04/17/15 | 730,000 | 733,143 | ||||||
0.750% due 11/25/14 | 700,000 | 706,988 | ||||||
0.875% due 10/28/13 | 1,325,000 | 1,334,720 | ||||||
|
| |||||||
Total U.S. Government Agency Issues |
| 11,841,101 | ||||||
|
| |||||||
U.S. TREASURY OBLIGATIONS - 7.1% | ||||||||
U.S. Treasury Inflation Protected Securities - 3.5% |
| |||||||
0.500% due 04/15/15 ^ | 1,168,250 | 1,228,214 | ||||||
1.875% due 07/15/13 ^ | 6,493,081 | 6,688,380 | ||||||
|
| |||||||
7,916,594 | ||||||||
|
| |||||||
U.S. Treasury Notes - 3.6% | ||||||||
0.250% due 05/31/14 | 6,000,000 | 6,003,048 | ||||||
1.000% due 10/31/16 | 1,910,000 | 1,950,885 | ||||||
1.500% due 07/31/16 | 275,000 | 286,129 | ||||||
|
| |||||||
8,240,062 | ||||||||
|
| |||||||
Total U.S. Treasury Obligations |
| 16,156,656 | ||||||
|
| |||||||
MUNICIPAL BONDS - 0.3% | ||||||||
Florida Hurricane Catastrophe Fund Finance Corp ‘A’ | 690,000 | 690,035 | ||||||
|
| |||||||
Total Municipal Bonds | 690,035 | |||||||
|
|
| Value | |||||||
SHORT-TERM INVESTMENT - 4.8% | ||||||||
Money Market Fund - 4.8% | ||||||||
BlackRock Liquidity Funds Treasury | 10,977,589 | $10,977,589 | ||||||
|
| |||||||
Total Short-Term Investment | 10,977,589 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 99.6% | 225,835,375 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.4% | 948,355 | |||||||
|
| |||||||
NET ASSETS - 100.0% | $226,783,730 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Corporate Bonds & Notes | 47.9% | |||
Mortgage-Backed Securities | 23.9% | |||
Asset-Backed Securities | 10.4% | |||
U.S. Treasury Obligations | 7.1% | |||
U.S. Government Agency Issues | 5.2% | |||
Short-Term Investment | 4.8% | |||
Municipal Bonds | 0.3% | |||
|
| |||
99.6% | ||||
Other Assets & Liabilities, Net | 0.4% | |||
|
| |||
100.0% | ||||
|
|
(b) | As of September 30, 2012, the fund’s Standard & Poor’s quality ratings as a percentage of total fixed income investments were are follows: |
AAA | 9.9% | |||
AA / U.S. Government & Agency Issue | 39.8% | |||
A | 19.4% | |||
BBB | 21.7% | |||
BB | 2.5% | |||
B | 0.3% | |||
Not Rated | 6.4% | |||
|
| |||
100.0% | ||||
|
|
(c) | As of September 30, 2012, 0.3% of the fund’s net assets were reported illiquid by the advisor under the Trust’s policy. |
(d) | Fair Value Measurements |
The following is a summary of the fund’s investments as categorized under the three-tier hierarchy of inputs used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant | Level 3 Significant | |||||||||||||||
Assets | Corporate Bonds & Notes | $108,503,741 | $— | $108,503,741 | $— | |||||||||||||
Mortgage-Backed Securities | 54,142,324 | — | 53,437,065 | 705,259 | ||||||||||||||
Asset-Backed Securities | 23,523,929 | — | 23,307,854 | 216,075 | ||||||||||||||
U.S. Government Agency Issues | 11,841,101 | — | 11,841,101 | — | ||||||||||||||
U.S. Treasury Obligations | 16,156,656 | — | 16,156,656 | — | ||||||||||||||
Municipal Bonds | 690,035 | — | 690,035 | — | ||||||||||||||
Short-Term Investment | 10,977,589 | 10,977,589 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Assets | $225,835,375 | $10,977,589 | $213,936,452 | $921,334 | ||||||||||||||
|
|
|
|
|
|
|
|
During the six-month period ended September 30, 2012, an investment with a value of $382,989 was transferred from level 2 to level 3 due to the valuation being updated from an evaluated vendor price to a single broker quoted vendor price.
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-28
PACIFIC LIFE FUNDS
PL SHORT DURATION BOND FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
The following is a reconciliation of investments for significant unobservable inputs (Level 3) used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) for the six-month period ended September 30, 2012:
Mortgage-Backed Securities | Asset-Backed Securities | Total | ||||||||||
Value, Beginning of Period | $377,017 | $— | $377,017 | |||||||||
Purchases | — | 214,748 | 214,748 | |||||||||
Sales (including paydowns) | (54,683 | ) | — | (54,683 | ) | |||||||
Accrued Discount (Premiums) | — | — | — | |||||||||
Net Realized Gains (Losses) | (620 | ) | — | (620 | ) | |||||||
Change in Net Unrealized Appreciation | 556 | 1,327 | 1,883 | |||||||||
Transfers In | 382,989 | — | 382,989 | |||||||||
Transfers Out | — | — | — | |||||||||
|
|
|
|
|
| |||||||
Value, End of Period | $705,259 | $216,075 | $921,334 | |||||||||
|
|
|
|
|
| |||||||
Change in Net Unrealized Appreciation on Level 3 Investments Held at the End of Period, If Applicable | $556 | $1,327 | $1,883 | |||||||||
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-29
PACIFIC LIFE FUNDS
PL EMERGING MARKETS DEBT FUND
Schedule of Investments
September 30, 2012 (Unaudited)
Principal | Value | |||||||
CORPORATE BONDS & NOTES - 38.8% |
| |||||||
Austria - 0.2% | ||||||||
OGX Austria GmbH | $200,000 | $174,500 | ||||||
|
| |||||||
Azerbaijan - 0.2% | ||||||||
State Oil Co of The Azerbaijan Republic | 200,000 | 214,956 | ||||||
|
| |||||||
Barbados - 0.7% | ||||||||
Columbus International Inc | 500,000 | 560,000 | ||||||
|
| |||||||
Bermuda - 2.2% | ||||||||
Central European Media Enterprises Ltd | EUR 70,000 | 90,178 | ||||||
11.625% due 09/15/16 ~ | 250,000 | 336,522 | ||||||
China Oriental Group Co Ltd | $200,000 | 174,000 | ||||||
8.000% due 08/18/15 ~ | 200,000 | 196,000 | ||||||
Digicel Group Ltd | 300,000 | 316,500 | ||||||
10.500% due 04/15/18 ~ | 100,000 | 109,750 | ||||||
Digicel Ltd | 200,000 | 206,000 | ||||||
Qtel International Finance Ltd | 360,000 | 466,200 | ||||||
|
| |||||||
1,895,150 | ||||||||
|
| |||||||
Cayman Islands - 6.4% | ||||||||
Agile Property Holdings Ltd | 100,000 | 101,750 | ||||||
9.875% due 03/20/17 ~ | 200,000 | 209,000 | ||||||
Central China Real Estate Ltd | 100,000 | 109,500 | ||||||
China Shanshui Cement Group Ltd | 200,000 | 212,000 | ||||||
Country Garden Holdings Co Ltd | 200,000 | 219,500 | ||||||
11.250% due 04/22/17 ~ | 300,000 | 330,000 | ||||||
Dar Al-Arkan International Sukuk Co II | 300,000 | 321,375 | ||||||
DP World Sukuk Ltd | 100,000 | 109,350 | ||||||
Dubai DOF Sukuk Ltd | 110,000 | 118,360 | ||||||
Dubai Holding Commercial Operations | EUR 350,000 | 431,777 | ||||||
6.000% due 02/01/17 | GBP 150,000 | 224,660 | ||||||
Emaar Sukuk Ltd | $200,000 | 212,300 | ||||||
8.500% due 08/03/16 | 200,000 | 224,500 | ||||||
Evergrande Real Estate Group Ltd | CNY 1,000,000 | 150,632 | ||||||
9.250% due 01/19/16 ~ | 1,400,000 | 198,071 | ||||||
13.000% due 01/27/15 ~ | $400,000 | 408,500 | ||||||
Fibria Overseas Finance Ltd | 200,000 | 215,500 | ||||||
Hidili Industry International Development Ltd | 200,000 | 159,000 | ||||||
JBS Finance II Ltd | 500,000 | 515,000 | ||||||
Kuwait Projects Co | 200,000 | 237,000 |
Principal | Value | |||||||
Longfor Properties Co Ltd | $200,000 | $216,000 | ||||||
Marfrig Overseas Ltd | 200,000 | 166,300 | ||||||
Mongolian Mining Corp | 200,000 | 203,500 | ||||||
Nile Finance Ltd | 120,000 | 121,200 | ||||||
Shimao Property Holdings Ltd | 100,000 | 104,904 | ||||||
|
| |||||||
5,519,679 | ||||||||
|
| |||||||
Chile - 1.1% | ||||||||
Banco del Estado de Chile | 120,000 | 130,800 | ||||||
Corp Nacional del Cobre de Chile | 130,000 | 141,152 | ||||||
7.500% due 01/15/19 ~ | 180,000 | 234,332 | ||||||
Empresa Nacional del Petroleo | 100,000 | 109,785 | ||||||
6.250% due 07/08/19 ~ | 130,000 | 150,595 | ||||||
Inversiones Alsacia SA | 140,334 | 144,174 | ||||||
|
| |||||||
910,838 | ||||||||
|
| |||||||
Colombia - 0.1% | ||||||||
Ecopetrol SA | 80,000 | 102,800 | ||||||
|
| |||||||
El Salvador - 0.1% | ||||||||
Telemovil Finance Co Ltd | 100,000 | 106,310 | ||||||
|
| |||||||
Georgia - 0.3% | ||||||||
Georgian Railway JSC | 200,000 | 222,000 | ||||||
|
| |||||||
Hong Kong - 0.8% | ||||||||
Bank of China Hong Kong Ltd | 300,000 | 336,628 | ||||||
Fosun International Ltd | 200,000 | 198,000 | ||||||
Industrial & Commercial Bank of China Asia Ltd | 150,000 | 165,278 | ||||||
|
| |||||||
699,906 | ||||||||
|
| |||||||
Indonesia - 0.3% | ||||||||
P.T. Pertamina Persero | 200,000 | 218,060 | ||||||
|
| |||||||
Ireland - 1.3% | ||||||||
Alfa Bank OSJC | 200,000 | 201,268 | ||||||
Metalloinvest Finance Ltd | 200,000 | 204,000 | ||||||
MTS International Funding Ltd | 400,000 | 488,480 | ||||||
VEB-Leasing | 200,000 | 208,760 | ||||||
|
| |||||||
1,102,508 | ||||||||
|
| |||||||
Kazakhstan - 2.9% | ||||||||
ATF Bank JSC | 100,000 | 99,225 | ||||||
Development Bank of Kazakhstan JSC | 200,000 | 218,000 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-30
PACIFIC LIFE FUNDS
PL EMERGING MARKETS DEBT FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | Value | |||||||
Halyk Savings Bank of Kazakhstan JSC | $200,000 | $208,750 | ||||||
Kazkommertsbank JSC | 200,000 | 175,750 | ||||||
8.000% due 11/03/15 ~ | 300,000 | 282,000 | ||||||
KazMunayGas National Co | 280,000 | 337,571 | ||||||
7.000% due 05/05/20 ~ | 240,000 | 295,800 | ||||||
8.375% due 07/02/13 ~ | 290,000 | 304,456 | ||||||
9.125% due 07/02/18 ~ | 100,000 | 129,799 | ||||||
11.750% due 01/23/15 ~ | 170,000 | 205,943 | ||||||
Zhaikmunai LLP | 200,000 | 213,760 | ||||||
|
| |||||||
2,471,054 | ||||||||
|
| |||||||
Luxembourg - 3.6% | ||||||||
Evraz Group SA | 500,000 | 497,500 | ||||||
9.500% due 04/24/18 ~ | 100,000 | 113,017 | ||||||
MHP SA | 400,000 | 408,000 | ||||||
Minerva Luxembourg SA | 300,000 | 347,610 | ||||||
Russian Standard Bank | 200,000 | 205,100 | ||||||
Sberbank of Russia | 200,000 | 221,500 | ||||||
Severstal OAO | 200,000 | 210,050 | ||||||
6.700% due 10/25/17 ~ | 200,000 | 214,778 | ||||||
TMK OAO | 500,000 | 512,500 | ||||||
VTB Bank OJSC | 200,000 | 209,500 | ||||||
6.875% due 05/29/18 ~ | 130,000 | 140,244 | ||||||
|
| |||||||
3,079,799 | ||||||||
|
| |||||||
Malaysia - 0.7% | ||||||||
Axiata SPV1 Labuan Ltd | 100,000 | 112,599 | ||||||
MMI International Ltd | 200,000 | 209,000 | ||||||
Petronas Capital Ltd | 150,000 | 178,099 | ||||||
7.875% due 05/22/22 ~ | 100,000 | 143,232 | ||||||
|
| |||||||
642,930 | ||||||||
|
| |||||||
Mexico - 2.1% | ||||||||
Cemex SAB de CV | 300,000 | 301,500 | ||||||
Comision Federal de Electricidad | 200,000 | 224,500 | ||||||
Corp GEO SAB de CV | 200,000 | 208,000 | ||||||
Desarrolladora Homex SAB de CV | 100,000 | 103,000 | ||||||
9.750% due 03/25/20 ~ | 100,000 | 102,500 | ||||||
Petroleos Mexicanos | 70,000 | 77,175 | ||||||
6.000% due 03/05/20 | 80,000 | 96,000 | ||||||
6.500% due 06/02/41 | 230,000 | 287,845 | ||||||
8.000% due 05/03/19 | 130,000 | 170,755 | ||||||
Urbi Desarrollos Urbanos SAB de CV | 100,000 | 89,000 | ||||||
9.750% due 02/03/22 ~ | 200,000 | 176,500 | ||||||
|
| |||||||
1,836,775 | ||||||||
|
|
Principal | Value | |||||||
Netherlands - 3.5% | ||||||||
DTEK Finance BV | $200,000 | $201,000 | ||||||
Kazakhstan Temir Zholy Finance BV | 220,000 | 264,794 | ||||||
Kazkommerts International BV | 100,000 | 99,500 | ||||||
Lukoil International Finance BV | 100,000 | 120,523 | ||||||
Majapahit Holding BV | 170,000 | 202,088 | ||||||
7.750% due 01/20/20 ~ | 120,000 | 151,500 | ||||||
8.000% due 08/07/19 ~ | 130,000 | 164,775 | ||||||
Marfrig Holding Europe BV | 200,000 | 164,000 | ||||||
Metinvest BV | 500,000 | 478,750 | ||||||
10.250% due 05/20/15 ~ | 100,000 | 101,250 | ||||||
OSX 3 Leasing BV | 100,000 | 104,080 | ||||||
Polish Television Holding BV | EUR 100,000 | 134,288 | ||||||
VimpelCom Holdings BV | $700,000 | 735,875 | ||||||
WPE International Cooperatief UA | 100,000 | 86,000 | ||||||
|
| |||||||
3,008,423 | ||||||||
|
| |||||||
Peru - 0.2% | ||||||||
CFG Investment SAC | 200,000 | 160,000 | ||||||
|
| |||||||
Philippines - 0.7% | ||||||||
Development Bank of Philippines | 200,000 | 223,853 | ||||||
Power Sector Assets & Liabilities | 260,000 | 362,700 | ||||||
|
| |||||||
586,553 | ||||||||
|
| |||||||
Singapore - 0.4% | ||||||||
Berau Capital Resources Pte Ltd | 100,000 | 107,000 | ||||||
Yanlord Land Group Ltd | 200,000 | 209,500 | ||||||
|
| |||||||
316,500 | ||||||||
|
| |||||||
South Africa - 1.3% | ||||||||
African Bank Ltd | 200,000 | 216,000 | ||||||
Edcon Holdings Proprietary Ltd | EUR 100,000 | 110,514 | ||||||
Edcon Proprietary Ltd | 400,000 | 480,609 | ||||||
Foodcorp Proprietary Ltd | 200,000 | 270,824 | ||||||
|
| |||||||
1,077,947 | ||||||||
|
| |||||||
Spain - 0.4% | ||||||||
Cemex Espana Luxembourg | $100,000 | 100,770 | ||||||
9.250% due 05/12/20 ~ | 200,000 | 201,540 | ||||||
|
| |||||||
302,310 | ||||||||
|
| |||||||
Sri Lanka - 0.2% | ||||||||
Bank of Ceylon | 200,000 | 214,500 | ||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-31
PACIFIC LIFE FUNDS
PL EMERGING MARKETS DEBT FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | Value | |||||||
Sweden - 0.9% | ||||||||
Eileme 2 AB | $200,000 | $225,500 | ||||||
11.750% due 01/31/20 ~ | EUR 200,000 | 285,281 | ||||||
TVN Finance Corp II AB | 200,000 | 276,286 | ||||||
|
| |||||||
787,067 | ||||||||
|
| |||||||
Turkey - 0.3% | ||||||||
Export Credit Bank of Turkey | $200,000 | 215,500 | ||||||
|
| |||||||
Ukraine - 0.4% | ||||||||
National JSC Naftogaz of Ukraine | 340,000 | 347,242 | ||||||
|
| |||||||
United Arab Emirates - 1.8% | ||||||||
Dolphin Energy Ltd | 144,072 | 163,882 | ||||||
DP World Ltd | 400,000 | 433,000 | ||||||
Dubai Electricity & Water Authority | 240,000 | 281,760 | ||||||
8.500% due 04/22/15 ~ | 380,000 | 429,400 | ||||||
Emirates Airline | 200,000 | 208,150 | ||||||
|
| |||||||
1,516,192 | ||||||||
|
| |||||||
United Kingdom - 4.1% | ||||||||
Afren PLC | 200,000 | 228,500 | ||||||
11.500% due 02/01/16 ~ | 200,000 | 229,444 | ||||||
Atlantic Finance Ltd | 400,000 | 441,400 | ||||||
CNPC HK Overseas Capital Ltd | 200,000 | 256,287 | ||||||
Export-Import Bank of Ukraine | 100,000 | 100,275 | ||||||
Ferrexpo Finance PLC | 300,000 | 285,000 | ||||||
Franshion Development Ltd | 200,000 | 207,400 | ||||||
Oschadbank | 290,000 | 279,850 | ||||||
Privatbank CJSC | 150,000 | 142,500 | ||||||
Sinochem Overseas Capital Co Ltd | 300,000 | 320,613 | ||||||
6.300% due 11/12/40 ~ | 100,000 | 116,637 | ||||||
Sinopec Group Overseas Development 2012 Ltd | 200,000 | 214,803 | ||||||
Star Energy Geothermal Wayang Windu Ltd | 200,000 | 217,000 | ||||||
Ukreximbank | 320,000 | 310,000 | ||||||
Vedanta Resources PLC | 200,000 | 196,000 | ||||||
|
| |||||||
3,545,709 | ||||||||
|
| |||||||
United States - 1.0% | ||||||||
CEDC Finance Corp International Inc | EUR 150,000 | 133,484 | ||||||
Cemex Finance LLC | $100,000 | 103,750 | ||||||
NII Capital Corp | 300,000 | 240,000 |
Principal | Value | |||||||
Pemex Project Funding Master Trust | $100,000 | $117,625 | ||||||
Reliance Holdings USA Co | 250,000 | 281,652 | ||||||
|
| |||||||
876,511 | ||||||||
|
| |||||||
Venezuela - 0.6% | ||||||||
Petroleos de Venezuela SA | 150,000 | 119,250 | ||||||
5.375% due 04/12/27 | 340,000 | 211,650 | ||||||
5.500% due 04/12/37 ~ | 140,000 | 85,400 | ||||||
12.750% due 02/17/22 ~ | 110,000 | 112,750 | ||||||
|
| |||||||
529,050 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes | 33,240,769 | |||||||
|
| |||||||
FOREIGN GOVERNMENT BONDS & NOTES - 56.8% |
| |||||||
Argentina - 1.5% |
| |||||||
Republic of Argentina | 480,000 | 440,400 | ||||||
8.280% due 12/31/33 | 904,868 | 708,228 | ||||||
8.750% due 06/02/17 | 100,000 | 98,000 | ||||||
|
| |||||||
1,246,628 | ||||||||
|
| |||||||
Belarus - 1.0% | ||||||||
Republic of Belarus | 310,000 | 308,062 | ||||||
8.950% due 01/26/18 ~ | 580,000 | 571,880 | ||||||
|
| |||||||
879,942 | ||||||||
|
| |||||||
Brazil - 8.6% | ||||||||
Banco Nacional de Desenvolvimento | 100,000 | 119,000 | ||||||
6.500% due 06/10/19 ~ | 270,000 | 334,125 | ||||||
Brazil Notas do Tesouro Nacional ‘B’ | BRL 600,000 | 713,052 | ||||||
6.000% due 08/15/16 ^ | 950,000 | 1,136,222 | ||||||
6.000% due 08/15/20 ^ | 820,000 | 1,028,002 | ||||||
Federative Republic of Brazil | $200,000 | 200,300 | ||||||
4.875% due 01/22/21 | 600,000 | 720,000 | ||||||
5.625% due 01/07/41 | 640,000 | 822,400 | ||||||
5.875% due 01/15/19 | 190,000 | 237,500 | ||||||
6.000% due 01/17/17 | 70,000 | 83,737 | ||||||
7.125% due 01/20/37 | 460,000 | 695,750 | ||||||
8.250% due 01/20/34 | 360,000 | 596,700 | ||||||
8.875% due 04/15/24 | 130,000 | 210,925 | ||||||
10.125% due 05/15/27 | 260,000 | 471,510 | ||||||
|
| |||||||
7,369,223 | ||||||||
|
| |||||||
Chile - 0.1% | ||||||||
Republic of Chile | ||||||||
3.250% due 09/14/21 | 100,000 | 108,750 | ||||||
|
| |||||||
Colombia - 2.5% | ||||||||
Republic of Columbia | 200,000 | 230,390 | ||||||
6.125% due 01/18/41 | 270,000 | 367,200 | ||||||
7.375% due 01/27/17 | 160,000 | 199,520 | ||||||
7.375% due 03/18/19 | 240,000 | 318,600 | ||||||
7.375% due 09/18/37 | 140,000 | 215,950 | ||||||
8.125% due 05/21/24 | 320,000 | 479,200 | ||||||
10.375% due 01/28/33 | 20,000 | 36,750 | ||||||
11.750% due 02/25/20 | 200,000 | 326,500 | ||||||
|
| |||||||
2,174,110 | ||||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-32
PACIFIC LIFE FUNDS
PL EMERGING MARKETS DEBT FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | Value | |||||||
Croatia - 1.2% | ||||||||
Republic of Croatia | $200,000 | $217,000 | ||||||
6.375% due 03/24/21 ~ | 240,000 | 267,396 | ||||||
6.625% due 07/14/20 ~ | 300,000 | 337,800 | ||||||
6.750% due 11/05/19 ~ | 200,000 | 226,500 | ||||||
|
| |||||||
1,048,696 | ||||||||
|
| |||||||
Dominican Republic - 0.4% | ||||||||
Dominican Republic | 270,000 | 306,450 | ||||||
|
| |||||||
Ecuador - 0.1% | ||||||||
Republic of Ecuador | 100,000 | 104,000 | ||||||
|
| |||||||
Egypt - 0.2% | ||||||||
Arab Republic of Egypt | 100,000 | 101,125 | ||||||
6.875% due 04/30/40 ~ | 100,000 | 99,250 | ||||||
|
| |||||||
200,375 | ||||||||
|
| |||||||
El Salvador - 0.7% | ||||||||
Republic of El Salvador | 180,000 | 201,600 | ||||||
7.650% due 06/15/35 ~ | 270,000 | 303,075 | ||||||
8.250% due 04/10/32 ~ | 40,000 | 47,700 | ||||||
|
| |||||||
552,375 | ||||||||
|
| |||||||
Ghana - 0.2% | ||||||||
Republic of Ghana | 130,000 | 153,400 | ||||||
|
| |||||||
Hungary - 1.1% | ||||||||
Republic of Hungary | 270,000 | 294,268 | ||||||
6.375% due 03/29/21 | 304,000 | 332,515 | ||||||
7.625% due 03/29/41 | 290,000 | 329,150 | ||||||
|
| |||||||
955,933 | ||||||||
|
| |||||||
Indonesia - 3.1% | ||||||||
Republic of Indonesia | 310,000 | 356,113 | ||||||
5.875% due 03/13/20 ~ | 190,000 | 229,900 | ||||||
6.625% due 02/17/37 ~ | 100,000 | 133,250 | ||||||
6.875% due 01/17/18 ~ | 320,000 | 393,200 | ||||||
7.500% due 01/15/16 ~ | 250,000 | 295,000 | ||||||
7.750% due 01/17/38 ~ | 190,000 | 284,525 | ||||||
8.500% due 10/12/35 ~ | 340,000 | 541,450 | ||||||
10.375% due 05/04/14 ~ | 100,000 | 114,000 | ||||||
11.625% due 03/04/19 ~ | 170,000 | 260,525 | ||||||
|
| |||||||
2,607,963 | ||||||||
|
| |||||||
Iraq - 1.0% | ||||||||
Republic of Iraq | 930,000 | 860,250 | ||||||
|
| |||||||
Ireland - 1.3% | ||||||||
Vnesheconombank | 150,000 | 163,539 | ||||||
6.800% due 11/22/25 ~ | 280,000 | 330,425 | ||||||
6.902% due 07/09/20 ~ | 510,000 | 603,809 | ||||||
|
| |||||||
1,097,773 | ||||||||
|
|
Principal | Value | |||||||
Ivory Coast - 1.0% | ||||||||
Ivory Coast | $1,030,000 | $893,525 | ||||||
|
| |||||||
Jordan - 0.4% | ||||||||
Kingdom of Jordan | 310,000 | 303,800 | ||||||
|
| |||||||
Kazakhstan - 0.2% | ||||||||
Kazatomprom Natsionalnaya Atomnaya | 190,000 | 208,050 | ||||||
|
| |||||||
Lebanon - 1.2% | ||||||||
Lebanese Republic | 50,000 | 49,750 | ||||||
6.100% due 10/04/22 ~ | 400,000 | 406,000 | ||||||
6.375% due 03/09/20 | 240,000 | 250,800 | ||||||
6.600% due 11/27/26 | 170,000 | 174,675 | ||||||
8.250% due 04/12/21 ~ | 90,000 | 104,625 | ||||||
8.500% due 01/19/16 ~ | 30,000 | 33,450 | ||||||
|
| |||||||
1,019,300 | ||||||||
|
| |||||||
Lithuania - 1.9% | ||||||||
Republic of Lithuania | 120,000 | 134,250 | ||||||
6.125% due 03/09/21 ~ | 280,000 | 335,300 | ||||||
6.625% due 02/01/22 ~ | 400,000 | 497,500 | ||||||
7.375% due 02/11/20 ~ | 520,000 | 663,000 | ||||||
|
| |||||||
1,630,050 | ||||||||
|
| |||||||
Malaysia - 0.3% | ||||||||
Wakala Global Sukuk Bhd | 250,000 | 289,793 | ||||||
|
| |||||||
Mexico - 5.1% | ||||||||
Mexican Bonos | MXN 2,500,000 | 226,051 | ||||||
8.500% due 05/31/29 | 6,100,000 | 595,256 | ||||||
10.000% due 11/20/36 | 9,300,000 | 1,035,109 | ||||||
United Mexican States | $120,000 | 131,184 | ||||||
4.750% due 03/08/44 | 168,000 | 187,085 | ||||||
5.125% due 01/15/20 | 340,000 | 408,000 | ||||||
5.625% due 01/15/17 | 140,000 | 164,360 | ||||||
5.750% due 10/12/10 | 304,000 | 365,560 | ||||||
5.950% due 03/19/19 | 140,000 | 174,300 | ||||||
6.050% due 01/11/40 | 520,000 | 695,500 | ||||||
6.750% due 09/27/34 | 240,000 | 342,960 | ||||||
|
| |||||||
4,325,365 | ||||||||
|
| |||||||
Morocco - 0.1% | ||||||||
Kingdom of Morocco | EUR 90,000 | 116,337 | ||||||
|
| |||||||
Nigeria - 0.3% | ||||||||
Republic of Nigeria | $200,000 | 227,000 | ||||||
|
| |||||||
Pakistan - 0.4% | ||||||||
Islamic Republic of Pakistan | 400,000 | 361,000 | ||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-33
PACIFIC LIFE FUNDS
PL EMERGING MARKETS DEBT FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | Value | |||||||
Panama - 1.0% | ||||||||
Republic of Panama | $260,000 | $366,600 | ||||||
7.250% due 03/15/15 | 130,000 | 149,175 | ||||||
8.875% due 09/30/27 | 110,000 | 179,025 | ||||||
9.375% due 04/01/29 | 90,000 | 153,675 | ||||||
|
| |||||||
848,475 | ||||||||
|
| |||||||
Peru - 1.4% | ||||||||
Republic of Peru | 50,000 | 66,500 | ||||||
7.350% due 07/21/25 | 350,000 | 514,500 | ||||||
8.375% due 05/03/16 | 120,000 | 150,000 | ||||||
8.750% due 11/21/33 | 280,000 | 489,300 | ||||||
|
| |||||||
1,220,300 | ||||||||
|
| |||||||
Philippines - 3.2% | ||||||||
Republic of Philippines | 380,000 | 425,600 | ||||||
5.500% due 03/30/26 | 230,000 | 288,938 | ||||||
6.375% due 10/23/34 | 200,000 | 276,000 | ||||||
7.500% due 09/25/24 | 100,000 | 142,500 | ||||||
7.750% due 01/14/31 | 300,000 | 460,125 | ||||||
8.375% due 06/17/19 | 130,000 | 180,050 | ||||||
9.500% due 02/02/30 | 350,000 | 606,375 | ||||||
10.625% due 03/16/25 | 200,000 | 351,500 | ||||||
|
| |||||||
2,731,088 | ||||||||
|
| |||||||
Poland - 1.2% | ||||||||
Republic of Poland | 300,000 | 295,560 | ||||||
5.000% due 03/23/22 | 330,000 | 383,625 | ||||||
6.375% due 07/15/19 | 270,000 | 334,462 | ||||||
|
| |||||||
1,013,647 | ||||||||
|
| |||||||
Qatar - 0.5% | ||||||||
State of Qatar | 200,000 | 255,500 | ||||||
6.400% due 01/20/40 ~ | 100,000 | 137,000 | ||||||
|
| |||||||
392,500 | ||||||||
|
| |||||||
Romania - 0.5% | ||||||||
Republic of Romania | 350,000 | 395,063 | ||||||
|
| |||||||
Russia - 2.2% | ||||||||
Russian Foreign Bond - Eurobond | 100,000 | 115,050 | ||||||
5.625% due 04/04/42 ~ | 200,000 | 240,520 | ||||||
7.500% due 03/31/30 § ~ | 1,092,750 | 1,381,782 | ||||||
12.750% due 06/24/28 ~ | 90,000 | 174,600 | ||||||
|
| |||||||
1,911,952 | ||||||||
|
| |||||||
Senegal - 0.3% | ||||||||
Republic of Senegal | 200,000 | 243,000 | ||||||
|
| |||||||
Serbia - 0.3% | ||||||||
Republic of Serbia | 240,000 | 255,600 | ||||||
|
| |||||||
South Africa - 1.2% | ||||||||
Republic of South Africa | 230,000 | 274,275 | ||||||
5.875% due 05/30/22 | 250,000 | 309,075 | ||||||
6.250% due 03/08/41 | 100,000 | 132,810 | ||||||
6.875% due 05/27/19 | 270,000 | 341,226 | ||||||
|
| |||||||
1,057,386 | ||||||||
|
|
Principal | Value | |||||||
Sri Lanka - 0.4% | ||||||||
Republic of Sri Lanka | $200,000 | $218,462 | ||||||
7.400% due 01/22/15 ~ | 100,000 | 109,000 | ||||||
|
| |||||||
327,462 | ||||||||
|
| |||||||
Turkey - 3.5% | ||||||||
Republic of Turkey | 100,000 | 114,500 | ||||||
6.000% due 01/14/41 | 200,000 | 231,500 | ||||||
6.750% due 04/03/18 | 510,000 | 601,162 | ||||||
6.750% due 05/30/40 | 140,000 | 177,450 | ||||||
6.875% due 03/17/36 | 230,000 | 292,675 | ||||||
7.000% due 09/26/16 | 160,000 | 185,600 | ||||||
7.000% due 03/11/19 | 110,000 | 133,787 | ||||||
7.000% due 06/05/20 | 40,000 | 49,350 | ||||||
7.250% due 03/15/15 | 140,000 | 155,400 | ||||||
7.250% due 03/05/38 | 90,000 | 119,813 | ||||||
7.375% due 02/05/25 | 320,000 | 416,000 | ||||||
7.500% due 07/14/17 | 160,000 | 192,400 | ||||||
7.500% due 11/07/19 | 100,000 | 125,900 | ||||||
8.000% due 02/14/34 | 90,000 | 127,125 | ||||||
11.875% due 01/15/30 | 60,000 | 112,740 | ||||||
|
| |||||||
3,035,402 | ||||||||
|
| |||||||
Ukraine - 1.6% | ||||||||
Financing of Infrastructural Projects | 100,000 | 93,000 | ||||||
Ukraine Government | 200,000 | 193,156 | ||||||
6.875% due 09/23/15 ~ | 120,000 | 118,800 | ||||||
7.650% due 06/11/13 ~ | 100,000 | 100,900 | ||||||
7.750% due 09/23/20 ~ | 100,000 | 99,371 | ||||||
9.250% due 07/24/17 ~ | 400,000 | 422,184 | ||||||
9.250% due 07/24/17 ~ | 300,000 | 316,638 | ||||||
|
| |||||||
1,344,049 | ||||||||
|
| |||||||
United Arab Emirates - 0.2% | ||||||||
Emirate of Dubai Government | 170,000 | 202,300 | ||||||
|
| |||||||
Uruguay - 2.0% | ||||||||
Republic of Uruguay | 120,000 | 164,400 | ||||||
7.625% due 03/21/36 | 130,000 | 203,775 | ||||||
7.875% due 01/15/33 | 340,000 | 533,800 | ||||||
8.000% due 11/18/22 | 540,000 | 787,860 | ||||||
|
| |||||||
1,689,835 | ||||||||
|
| |||||||
Venezuela - 2.9% | ||||||||
Republic of Venezuela | 130,000 | 98,605 | ||||||
7.000% due 03/31/38 ~ | 10,000 | 7,375 | ||||||
7.650% due 04/21/25 | 200,000 | 157,500 | ||||||
7.750% due 10/13/19 ~ | 210,000 | 182,175 | ||||||
8.250% due 10/13/24 ~ | 160,000 | 133,600 | ||||||
8.500% due 10/08/14 | 190,000 | 191,900 | ||||||
9.000% due 05/07/23 ~ | 240,000 | 212,400 | ||||||
9.250% due 09/15/27 | 240,000 | 217,560 | ||||||
9.250% due 05/07/28 ~ | 200,000 | 177,000 | ||||||
9.375% due 01/13/34 | 140,000 | 124,950 | ||||||
10.750% due 09/19/13 | 80,000 | 82,400 | ||||||
11.750% due 10/21/26 ~ | 260,000 | 262,600 | ||||||
11.950% due 08/05/31 ~ | 314,000 | 321,065 | ||||||
12.750% due 08/23/22 ~ | 280,000 | 298,900 | ||||||
|
| |||||||
2,468,030 | ||||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-34
PACIFIC LIFE FUNDS
PL EMERGING MARKETS DEBT FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Principal | Value | |||||||
Vietnam - 0.4% | ||||||||
Socialist Republic of Vietnam | $200,000 | $223,000 | ||||||
6.875% due 01/15/16 ~ | 140,000 | 153,300 | ||||||
|
| |||||||
376,300 | ||||||||
|
| |||||||
Zambia - 0.1% | ||||||||
Republic of Zambia | 100,000 | 101,000 | ||||||
|
| |||||||
Total Foreign Government Bonds & Notes | 48,653,477 | |||||||
|
| |||||||
Shares | ||||||||
SHORT-TERM INVESTMENT - 4.4% |
| |||||||
Money Market Fund - 4.4% |
| |||||||
BlackRock Liquidity Funds Treasury | 3,792,928 | 3,792,928 | ||||||
|
| |||||||
Total Short-Term Investment | 3,792,928 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 100.0% |
| 85,687,174 | ||||||
OTHER ASSETS & LIABILITIES, NET - (0.0%) |
| (4,467 | ) | |||||
|
| |||||||
NET ASSETS - 100.0% |
| $85,682,707 | ||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Foreign Government Bonds & Notes | 56.8% | |||
Corporate Bonds & Notes | 38.8% | |||
Short-Term Investment | 4.4% | |||
|
| |||
100.0% | ||||
|
|
(b) | As of September 30, 2012, the fund was diversified by country of incorporation as a percentage of net assets as follows: |
Brazil | 8.6% | |||
Mexico | 7.2% | |||
Cayman Islands | 6.4% | |||
United States (Includes Short-Term Investment) | 5.4% | |||
United Kingdom | 4.1% | |||
Philippines | 3.9% | |||
Turkey | 3.8% | |||
Luxembourg | 3.6% | |||
Venezuela | 3.5% | |||
Netherlands | 3.5% | |||
Indonesia | 3.4% | |||
Kazakhstan | 3.1% | |||
Colombia | 2.6% | |||
Ireland | 2.6% | |||
South Africa | 2.5% | |||
Russia | 2.2% | |||
Bermuda | 2.2% | |||
United Arab Emirates | 2.0% | |||
Ukraine | 2.0% | |||
Uruguay | 2.0% | |||
Lithuania | 1.9% | |||
Peru | 1.6% | |||
Argentina | 1.5% | |||
Croatia | 1.2% | |||
Chile | 1.2% | |||
Lebanon | 1.2% | |||
Poland | 1.2% | |||
Hungary | 1.1% | |||
Malaysia | 1.0% | |||
Ivory Coast | 1.0% | |||
Belarus | 1.0% | |||
Iraq | 1.0% | |||
Panama | 1.0% | |||
Others (each less than 1.0%) | 9.5% | |||
|
| |||
100.0% | ||||
Other Assets & Liabilities, Net | (0.0% | ) | ||
|
| |||
100.0% | ||||
|
|
(c) As of September 30, 2012, the fund’s Standard & Poor’s quality ratings as a percentage of total fixed income investments were are follows: |
AA | 0.5% | |||
A | 6.6% | |||
BBB | 29.8% | |||
BB | 23.7% | |||
B | 20.7% | |||
CCC | 0.8% | |||
Not Rated | 17.9% | |||
|
| |||
100.0% | ||||
|
|
(d) | An investment with a value of $893,525 or 1.0% of the fund’s net assets was in default as of September 30, 2012. |
(e) | As of September 30, 2012, 0.8% of the fund’s net assets were reported illiquid by the portfolio manager under the Trust’s policy. |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-35
PACIFIC LIFE FUNDS
PL EMERGING MARKETS DEBT FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
(f) | Forward foreign currency contracts outstanding as of September 30, 2012 were as follows: |
Currency Purchased | Currency Sold | Expiration | Counterparty | Unrealized Appreciation (Depreciation) | ||||||||||||||||
BRL | 1,538,700 | USD | 758,562 | 10/12 | ING | ($915 | ) | |||||||||||||
EUR | 52,539 | USD | 67,527 | 10/12 | BRC | (973 | ) | |||||||||||||
EUR | 52,520 | USD | 67,503 | 10/12 | DUB | (1,532 | ) | |||||||||||||
EUR | 52,595 | USD | 67,599 | 10/12 | UBS | (1,305 | ) | |||||||||||||
INR | 48,452,600 | USD | 912,088 | 10/12 | SCB | 30,484 | ||||||||||||||
KRW | 346,192,500 | USD | 311,149 | 10/12 | MSC | 1,149 | ||||||||||||||
KRW | 345,991,000 | USD | 310,968 | 10/12 | SCB | 968 | ||||||||||||||
MXN | 10,400,000 | USD | 806,068 | 10/12 | HSB | 18,112 | ||||||||||||||
MXN | 10,915,366 | USD | 846,013 | 10/12 | MSC | 19,013 | ||||||||||||||
MXN | 15,143,625 | USD | 1,170,490 | 11/12 | BRC | (4,391 | ) | |||||||||||||
MYR | 5,709,080 | USD | 1,866,115 | 10/12 | SCB | 36,115 | ||||||||||||||
PLN | 2,808,516 | USD | 873,007 | 10/12 | DUB | 2,361 | ||||||||||||||
PLN | 1,355,706 | USD | 421,411 | 10/12 | HSB | 10,255 | ||||||||||||||
PLN | 1,352,400 | USD | 420,384 | 10/12 | JPM | 20,384 | ||||||||||||||
PLN | 2,006,973 | USD | 621,680 | 11/12 | DUB | (18,320 | ) | |||||||||||||
PLN | 2,684,000 | USD | 831,396 | 11/12 | DUB | 31,396 | ||||||||||||||
RUB | 13,267,026 | USD | 422,979 | 10/12 | BRC | (3,593 | ) | |||||||||||||
RUB | 13,229,675 | USD | 421,788 | 10/12 | DUB | (3,098 | ) | |||||||||||||
RUB | 26,748,540 | USD | 855,769 | 10/12 | HSB | 15,769 | ||||||||||||||
RUB | 13,437,500 | USD | 424,698 | 12/12 | UBS | (5,302 | ) | |||||||||||||
TRY | 697,390 | USD | 386,226 | 10/12 | DUB | (724 | ) | |||||||||||||
TRY | 400,000 | USD | 220,589 | 11/12 | HSB | 1,567 | ||||||||||||||
USD | 758,562 | BRL | 1,538,700 | 10/12 | HSB | (8,562 | ) | |||||||||||||
USD | 1,068,221 | BRL | 2,184,050 | 12/12 | HSB | (18,248 | ) | |||||||||||||
USD | 1,063,306 | BRL | 2,174,000 | 12/12 | MSC | (11,642 | ) | |||||||||||||
USD | 749,238 | BRL | 1,538,700 | 01/13 | ING | 981 | ||||||||||||||
USD | 302,451 | CNY | 1,907,850 | 11/12 | SCB | (2,451 | ) | |||||||||||||
USD | 1,285,274 | EUR | 1,000,000 | 10/12 | DUB | 3,978 | ||||||||||||||
USD | 1,188,131 | EUR | 924,419 | 10/12 | HSB | 3,513 | ||||||||||||||
USD | 370,990 | EUR | 288,646 | 10/12 | UBS | 339 | ||||||||||||||
USD | 207,405 | GBP | 128,447 | 10/12 | UBS | (375 | ) | |||||||||||||
USD | 1,243,356 | MXN | 16,041,943 | 10/12 | DUB | (26,352 | ) | |||||||||||||
USD | 308,142 | MYR | 942,710 | 10/12 | ING | 1,858 | ||||||||||||||
USD | 172,232 | MYR | 526,915 | 10/12 | SCB | (2,231 | ) | |||||||||||||
USD | 308,344 | MYR | 943,330 | 10/12 | SCB | 1,656 | ||||||||||||||
USD | 427,455 | RUB | 13,407,400 | 10/12 | UBS | 2,545 | ||||||||||||||
USD | 823,131 | RUB | 26,059,684 | 12/12 | BRC | 6,869 | ||||||||||||||
|
| |||||||||||||||||||
Total Forward Foreign Currency Contracts |
| $99,298 | ||||||||||||||||||
|
|
(g) | Swap agreements outstanding as of September 30, 2012 were as follows: |
Interest Rate Swaps
Floating Rate Index | Counter- party | Pay/Receive Floating Rate | Fixed Rate | Expiration Date | Notional Amount | Value | Upfront Premiums Paid (Received) | Unrealized Appreciation | ||||||||||||||||||||||||
Brazil Cetip Interbank Deposit Rate | HSB | Receive | 9.040% | 01/02/17 | BRL 1,626,388 | $1,647 | $— | $1,647 | ||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||
Total Interest Rate Swaps | $1,647 | $— | $1,647 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-36
PACIFIC LIFE FUNDS
PL EMERGING MARKETS DEBT FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
(h) | Fair Value Measurements |
The following is a summary of the fund’s investments as categorized under the three-tier hierarchy of inputs used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant | Level 3 Significant | |||||||||||||||
Assets | Corporate Bonds & Notes | $33,240,769 | $— | $33,240,769 | $— | |||||||||||||
Foreign Government Bonds & Notes | 48,653,477 | — | 48,653,477 | — | ||||||||||||||
Short-Term Investment | 3,792,928 | 3,792,928 | — | — | ||||||||||||||
Derivatives: | ||||||||||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Forward Foreign Currency Contracts | 209,312 | — | 209,312 | — | ||||||||||||||
Interest Rate Contracts | ||||||||||||||||||
Swaps | 1,647 | — | 1,647 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Assets Derivatives | 210,959 | — | 210,959 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Assets | 85,898,133 | 3,792,928 | 82,105,205 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Liabilities | Derivatives: | |||||||||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Forward Foreign Currency Contracts | (110,014 | ) | — | (110,014 | ) | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities | (110,014 | ) | — | (110,014 | ) | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $85,788,119 | $3,792,928 | $81,995,191 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-37
PACIFIC LIFE FUNDS
PL COMSTOCK FUND
Schedule of Investments
September 30, 2012 (Unaudited)
| Value | |||||||
COMMON STOCKS - 94.0% | ||||||||
Consumer Discretionary - 15.1% | ||||||||
Carnival Corp (Panama) | 67,445 | $2,457,696 | ||||||
Comcast Corp ‘A’ | 224,839 | 8,042,491 | ||||||
General Motors Co * | 186,929 | 4,252,635 | ||||||
Kohl’s Corp | 17,048 | 873,199 | ||||||
Lowe’s Cos Inc | 94,229 | 2,849,485 | ||||||
News Corp ‘B’ | 164,584 | 4,081,683 | ||||||
Staples Inc | 133,430 | 1,537,114 | ||||||
Target Corp | 32,311 | 2,050,779 | ||||||
Time Warner Cable Inc | 65,324 | 6,209,699 | ||||||
Time Warner Inc | 44,622 | 2,022,715 | ||||||
Viacom Inc ‘B’ | 104,610 | 5,606,050 | ||||||
|
| |||||||
39,983,546 | ||||||||
|
| |||||||
Consumer Staples - 6.0% | ||||||||
Archer-Daniels-Midland Co | 47,523 | 1,291,675 | ||||||
CVS Caremark Corp | 96,668 | 4,680,665 | ||||||
Kraft Foods Inc ‘A’ * | 91,447 | 3,781,333 | ||||||
PepsiCo Inc | 5,305 | 375,435 | ||||||
The Procter & Gamble Co | 14,023 | 972,635 | ||||||
Unilever NV ‘NY’ (Netherlands) | 107,981 | 3,831,166 | ||||||
Wal-Mart Stores Inc | 14,601 | 1,077,554 | ||||||
|
| |||||||
16,010,463 | ||||||||
|
| |||||||
Energy - 12.5% | ||||||||
BP PLC ADR (United Kingdom) | 141,958 | 6,013,341 | ||||||
Chevron Corp | 34,433 | 4,013,511 | ||||||
Halliburton Co | 152,033 | 5,121,992 | ||||||
Murphy Oil Corp | 72,108 | 3,871,479 | ||||||
Noble Corp (Switzerland) | 39,080 | 1,398,282 | ||||||
QEP Resources Inc | 96,614 | 3,058,799 | ||||||
Royal Dutch Shell PLC ‘A’ ADR (United Kingdom) | 66,942 | 4,646,444 | ||||||
Weatherford International Ltd (Switzerland) * | 401,565 | 5,091,844 | ||||||
|
| |||||||
33,215,692 | ||||||||
|
| |||||||
Financials - 22.0% | ||||||||
Aflac Inc | 19,022 | 910,773 | ||||||
Bank of America Corp | 376,700 | 3,326,261 | ||||||
Citigroup Inc | 248,576 | 8,133,407 | ||||||
Fifth Third Bancorp | 173,895 | 2,697,111 | ||||||
JPMorgan Chase & Co | 190,218 | 7,700,025 | ||||||
MetLife Inc | 82,179 | 2,831,888 | ||||||
Morgan Stanley | 127,612 | 2,136,225 | ||||||
State Street Corp | 27,040 | 1,134,598 | ||||||
The Allstate Corp | 168,877 | 6,689,218 | ||||||
The Bank of New York Mellon Corp | 220,501 | 4,987,733 | ||||||
The Goldman Sachs Group Inc | 20,297 | 2,307,363 | ||||||
The PNC Financial Services Group Inc | 63,632 | 4,015,179 | ||||||
The Travelers Cos Inc | 52,816 | 3,605,220 | ||||||
U.S. Bancorp | 64,743 | 2,220,685 | ||||||
Wells Fargo & Co | 161,626 | 5,580,946 | ||||||
|
| |||||||
58,276,632 | ||||||||
|
| |||||||
Health Care - 14.0% | ||||||||
Bristol-Myers Squibb Co | 143,738 | 4,851,158 | ||||||
Cardinal Health Inc | 51,210 | 1,995,654 | ||||||
GlaxoSmithKline PLC ADR (United Kingdom) | 60,571 | 2,800,803 | ||||||
Merck & Co Inc | 123,926 | 5,589,063 | ||||||
Novartis AG (Switzerland) | 37,886 | 2,318,866 | ||||||
Pfizer Inc | 250,439 | 6,223,409 | ||||||
Roche Holding AG ADR (Switzerland) | 50,465 | 2,371,350 | ||||||
Sanofi ADR (France) | 79,676 | 3,430,849 | ||||||
UnitedHealth Group Inc | 88,725 | 4,916,252 | ||||||
WellPoint Inc | 43,765 | 2,538,808 | ||||||
|
| |||||||
37,036,212 | ||||||||
|
|
| Value | |||||||
Industrials - 6.3% | ||||||||
Emerson Electric Co | 61,119 | $2,950,214 | ||||||
General Electric Co | 266,285 | 6,047,332 | ||||||
Honeywell International Inc | 29,696 | 1,774,336 | ||||||
Ingersoll-Rand PLC (Ireland) | 92,870 | 4,162,433 | ||||||
Textron Inc | 66,861 | 1,749,752 | ||||||
|
| |||||||
16,684,067 | ||||||||
|
| |||||||
Information Technology - 10.3% | ||||||||
Cisco Systems Inc | 147,540 | 2,816,539 | ||||||
Corning Inc | 262,756 | 3,455,241 | ||||||
Dell Inc | 53,927 | 531,720 | ||||||
eBay Inc * | 90,901 | 4,400,517 | ||||||
Hewlett-Packard Co | 234,425 | 3,999,291 | ||||||
Intel Corp | 69,506 | 1,576,396 | ||||||
Microsoft Corp | 215,919 | 6,430,068 | ||||||
Yahoo! Inc * | 254,945 | 4,072,746 | ||||||
|
| |||||||
27,282,518 | ||||||||
|
| |||||||
Materials - 2.9% | ||||||||
Alcoa Inc | 328,862 | 2,910,429 | ||||||
International Paper Co | 131,946 | 4,792,279 | ||||||
|
| |||||||
7,702,708 | ||||||||
|
| |||||||
Telecommunication Services - 2.6% | ||||||||
AT&T Inc | 52,565 | 1,981,701 | ||||||
Verizon Communications Inc | 52,213 | 2,379,346 | ||||||
Vodafone Group PLC ADR (United Kingdom) | 88,063 | 2,509,355 | ||||||
|
| |||||||
6,870,402 | ||||||||
|
| |||||||
Utilities - 2.3% | ||||||||
FirstEnergy Corp | 50,335 | 2,219,774 | ||||||
PPL Corp | 138,669 | 4,028,334 | ||||||
|
| |||||||
6,248,108 | ||||||||
|
| |||||||
Total Common Stocks | 249,310,348 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT - 6.1% | ||||||||
Money Market Fund - 6.1% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 16,281,136 | 16,281,136 | ||||||
|
| |||||||
Total Short-Term Investment | 16,281,136 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 100.1% | 265,591,484 | |||||||
OTHER ASSETS & LIABILITIES, NET - (0.1%) | (297,138 | ) | ||||||
|
| |||||||
NET ASSETS - 100.0% | $265,294,346 | |||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-38
PACIFIC LIFE FUNDS
PL COMSTOCK FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Financials | 22.0% | |||
Consumer Discretionary | 15.1% | |||
Health Care | 14.0% | |||
Energy | 12.5% | |||
Information Technology | 10.3% | |||
Industrials | 6.3% | |||
Short-Term Investment | 6.1% | |||
Consumer Staples | 6.0% | |||
Materials | 2.9% | |||
Telecommunication Services | 2.6% | |||
Utilities | 2.3% | |||
|
| |||
100.1% | ||||
Other Assets & Liabilities, Net | (0.1% | ) | ||
|
| |||
100.0% | ||||
|
|
(b) | Forward foreign currency contracts outstanding as of September 30, 2012 were as follows: |
Currency Purchased | Currency Sold | Expiration | Counterparty | Unrealized Appreciation | ||||||||||||||||
USD | 639,713 | CHF | 601,319 | 10/12 | BNY | $2,012 | ||||||||||||||
USD | 1,279,454 | CHF | 1,202,664 | 10/12 | CIB | 3,996 | ||||||||||||||
USD | 645,282 | CHF | 606,554 | 10/12 | CIT | 2,078 | ||||||||||||||
USD | 1,279,378 | CHF | 1,202,592 | 10/12 | SSB | 4,073 | ||||||||||||||
USD | 3,390,910 | EUR | 2,637,979 | 10/12 | BNY | 15,325 | ||||||||||||||
USD | 1,772,101 | EUR | 1,378,617 | 10/12 | CIB | 8,431 | ||||||||||||||
USD | 3,454,628 | EUR | 2,687,548 | 10/12 | CIT | 15,831 | ||||||||||||||
USD | 1,741,397 | EUR | 1,354,730 | 10/12 | SSB | 8,169 | ||||||||||||||
USD | 1,561,655 | GBP | 967,174 | 10/12 | BNY | 4,493 | ||||||||||||||
USD | 3,309,674 | GBP | 2,049,767 | 10/12 | CIB | 10,558 | ||||||||||||||
USD | 1,572,714 | GBP | 974,022 | 10/12 | CIT | 4,764 | ||||||||||||||
USD | 3,122,737 | GBP | 1,933,992 | 10/12 | SSB | 9,558 | ||||||||||||||
|
| |||||||||||||||||||
Total Forward Foreign Currency Contracts |
| $89,288 | ||||||||||||||||||
|
|
(c) | Fair Value Measurements |
The following is a summary of the fund’s investments as categorized under the three-tier hierarchy of inputs used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Common Stocks | |||||||||||||||||
Consumer Discretionary | $39,983,546 | $39,983,546 | $— | $— | ||||||||||||||
Consumer Staples | 16,010,463 | 16,010,463 | — | — | ||||||||||||||
Energy | 33,215,692 | 33,215,692 | — | — | ||||||||||||||
Financials | 58,276,632 | 58,276,632 | — | — | ||||||||||||||
Health Care | 37,036,212 | 34,717,346 | 2,318,866 | — | ||||||||||||||
Industrials | 16,684,067 | 16,684,067 | — | — | ||||||||||||||
Information Technology | 27,282,518 | 27,282,518 | — | — | ||||||||||||||
Materials | 7,702,708 | 7,702,708 | — | — | ||||||||||||||
Telecommunications Services | 6,870,402 | 6,870,402 | — | — | ||||||||||||||
Utilities | 6,248,108 | 6,248,108 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
249,310,348 | 246,991,482 | 2,318,866 | — | |||||||||||||||
Short-Term Investment | 16,281,136 | 16,281,136 | — | — | ||||||||||||||
Derivatives: | ||||||||||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Forward Foreign Currency Contracts | 89,288 | — | 89,288 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $265,680,772 | $263,272,618 | $2,408,154 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
During the six-month period ended September 30, 2012, an investment with a value of $2,318,866 was transferred from level 1 to level 2 due to valuation adjustments made to exchange-traded prices.
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-39
PACIFIC LIFE FUNDS
PL GROWTH LT FUND
Schedule of Investments
September 30, 2012 (Unaudited)
| Value | |||||||
COMMON STOCKS - 93.3% |
| |||||||
Consumer Discretionary - 17.4% |
| |||||||
Amazon.com Inc * | 1,576 | $400,808 | ||||||
AutoZone Inc * | 1,379 | 509,775 | ||||||
CBS Corp ‘B’ | 20,413 | 741,604 | ||||||
Coach Inc | 7,272 | 407,377 | ||||||
Limited Brands Inc | 24,926 | 1,227,855 | ||||||
Mattel Inc | 18,116 | 642,756 | ||||||
Nike Inc ‘B’ | 6,880 | 652,981 | ||||||
Nordstrom Inc | 17,016 | 938,943 | ||||||
Polaris Industries Inc | 979 | 79,172 | ||||||
Prada SPA (Italy) | 52,000 | 386,229 | ||||||
Starbucks Corp | 3,864 | 196,098 | ||||||
The Walt Disney Co | 6,063 | 316,974 | ||||||
Time Warner Cable Inc | 6,222 | 591,463 | ||||||
|
| |||||||
7,092,035 | ||||||||
|
| |||||||
Consumer Staples - 9.9% | ||||||||
Anheuser-Busch InBev NV (Belgium) | 7,269 | 621,802 | ||||||
Colgate-Palmolive Co | 4,018 | 430,810 | ||||||
Costco Wholesale Corp | 5,327 | 533,366 | ||||||
Mead Johnson Nutrition Co | 3,085 | 226,069 | ||||||
Pernod-Ricard SA (France) | 6,696 | 752,469 | ||||||
Philip Morris International Inc | 4,551 | 409,317 | ||||||
Reckitt Benckiser Group PLC (United Kingdom) | 6,256 | 360,447 | ||||||
SABMiller PLC (United Kingdom) | 12,161 | 536,180 | ||||||
Whole Foods Market Inc | 1,645 | 160,223 | ||||||
|
| |||||||
4,030,683 | ||||||||
|
| |||||||
Energy - 5.5% | ||||||||
Dresser-Rand Group Inc * | 7,133 | 393,100 | ||||||
EOG Resources Inc | 2,716 | 304,328 | ||||||
Helmerich & Payne Inc | 6,770 | 322,320 | ||||||
Kinder Morgan Inc | 6,627 | 235,391 | ||||||
National Oilwell Varco Inc | 3,364 | 269,490 | ||||||
Noble Energy Inc | 3,495 | 324,022 | ||||||
Occidental Petroleum Corp | 2,491 | 214,376 | ||||||
Petroleo Brasileiro SA ADR (Brazil) | 7,939 | 182,121 | ||||||
|
| |||||||
2,245,148 | ||||||||
|
| |||||||
Financials - 2.6% | ||||||||
Banco do Brasil SA (Brazil) | 13,000 | 159,033 | ||||||
Prudential PLC (United Kingdom) | 29,016 | 380,514 | ||||||
T. Rowe Price Group Inc | 5,899 | 373,407 | ||||||
Ventas Inc REIT | 2,395 | 149,089 | ||||||
|
| |||||||
1,062,043 | ||||||||
|
| |||||||
Health Care - 13.0% | ||||||||
Aetna Inc | 5,627 | 222,829 | ||||||
AmerisourceBergen Corp | 9,169 | 354,932 | ||||||
Celgene Corp * | 8,390 | 640,996 | ||||||
Covidien PLC (Ireland) | 7,908 | 469,893 | ||||||
Express Scripts Holding Co * | 13,217 | 828,309 | ||||||
Gilead Sciences Inc * | 9,625 | 638,426 | ||||||
Medivation Inc * | 2,378 | 134,024 | ||||||
Perrigo Co | 7,067 | 820,973 | ||||||
Shire PLC ADR (United Kingdom) | 2,240 | 198,688 | ||||||
Valeant Pharmaceuticals International Inc (Canada) * | 8,383 | 463,328 | ||||||
Varian Medical Systems Inc * | 3,508 | 211,603 | ||||||
Vertex Pharmaceuticals Inc * | 5,800 | 324,510 | ||||||
|
| |||||||
5,308,511 | ||||||||
|
| |||||||
Industrials - 11.5% | ||||||||
C.H. Robinson Worldwide Inc | 4,449 | 260,489 | ||||||
Canadian Pacific Railway Ltd (Canada) | 3,823 | 316,888 | ||||||
Danaher Corp | 11,987 | 661,083 | ||||||
FANUC Corp (Japan) | 3,300 | 531,487 | ||||||
Fastenal Co | 6,270 | 269,547 |
| Value | |||||||
Precision Castparts Corp | 6,130 | $1,001,274 | ||||||
Sensata Technologies Holding NV | 15,181 | 451,938 | ||||||
Tyco International Ltd (Switzerland) | 5,187 | 291,821 | ||||||
Union Pacific Corp | 1,230 | 146,001 | ||||||
Verisk Analytics Inc ‘A’ * | 4,679 | 222,767 | ||||||
W.W. Grainger Inc | 2,622 | 546,346 | ||||||
|
| |||||||
4,699,641 | ||||||||
|
| |||||||
Information Technology - 29.1% | ||||||||
Amdocs Ltd (United Kingdom) | 11,536 | 380,573 | ||||||
Amphenol Corp ‘A’ | 6,850 | 403,328 | ||||||
ANSYS Inc * | 2,706 | 198,620 | ||||||
Apple Inc | 6,806 | 4,541,372 | ||||||
Atmel Corp * | 35,011 | 184,158 | ||||||
Autodesk Inc * | 6,540 | 218,240 | ||||||
eBay Inc * | 22,583 | 1,093,243 | ||||||
EMC Corp * | 19,285 | 525,902 | ||||||
Facebook Inc ‘A’ * | 5,723 | 123,903 | ||||||
Intuit Inc | 9,856 | 580,321 | ||||||
LinkedIn Corp ‘A’ * | 825 | 99,330 | ||||||
MasterCard Inc ‘A’ | 1,011 | 456,446 | ||||||
Microsoft Corp | 6,531 | 194,493 | ||||||
Motorola Solutions Inc | 10,496 | 530,573 | ||||||
ON Semiconductor Corp * | 40,182 | 247,923 | ||||||
Oracle Corp | 34,945 | 1,100,418 | ||||||
Taiwan Semiconductor Manufacturing Co Ltd (Taiwan) | 79,455 | 242,110 | ||||||
TE Connectivity Ltd (Switzerland) | 18,048 | 613,812 | ||||||
Teradata Corp * | 1,686 | 127,141 | ||||||
Zynga Inc ‘A’ * | 9,483 | 26,932 | ||||||
|
| |||||||
11,888,838 | ||||||||
|
| |||||||
Materials - 3.4% | ||||||||
Ball Corp | 18,435 | 779,985 | ||||||
Praxair Inc | 5,986 | 621,826 | ||||||
|
| |||||||
1,401,811 | ||||||||
|
| |||||||
Telecommunication Services - 0.9% | ||||||||
Crown Castle International Corp * | 5,433 | 348,255 | ||||||
|
| |||||||
Total Common Stocks |
| 38,076,965 | ||||||
|
| |||||||
PURCHASED OPTIONS - 0.2% | ||||||||
(See Note (d) in Notes to Schedule of Investments) |
| 72,930 | ||||||
|
| |||||||
Principal | ||||||||
SHORT-TERM INVESTMENTS - 7.2% | ||||||||
Commercial Paper - 4.9% | ||||||||
BNP Paribas | $2,000,000 | 2,000,000 | ||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-40
PACIFIC LIFE FUNDS
PL GROWTH LT FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
| Value | |||||||
Money Market Fund - 2.3% | ||||||||
BlackRock Liquidity Funds Treasury | 934,991 | $934,991 | ||||||
|
| |||||||
Total Short-Term Investments | 2,934,991 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 100.7% | 41,084,886 | |||||||
OTHER ASSETS & LIABILITIES, NET - (0.7%) | (283,940 | ) | ||||||
|
| |||||||
NET ASSETS - 100.0% | $40,800,946 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Information Technology | 29.1% | |||
Consumer Discretionary | 17.4% | |||
Health Care | 13.0% | |||
Industrials | 11.5% | |||
Consumer Staples | 9.9% | |||
Short-Term Investments | 7.2% | |||
Energy | 5.5% | |||
Materials | 3.4% | |||
Financials | 2.6% | |||
Telecommunication Services | 0.9% | |||
Purchased Options | 0.2% | |||
|
| |||
100.7% | ||||
Other Assets & Liabilities, Net | (0.7% | ) | ||
|
| |||
100.0% | ||||
|
|
(b) | Short-term investments reflect either the stated coupon rate or the annualized effective yield on the date of purchase for discounted investments. |
(c) | Forward foreign currency contracts outstanding as of September 30, 2012 were as follows: |
Currency Purchased | Currency Sold | Expiration | Counterparty | Unrealized Appreciation (Depreciation) | ||||||||||||||||
EUR | 353,000 | USD | 453,651 | 11/12 | CSF | ($2,602 | ) | |||||||||||||
GBP | 155,000 | USD | 250,290 | 10/12 | CSF | (748 | ) | |||||||||||||
JPY | 18,650,000 | USD | 239,003 | 11/12 | HSB | (918 | ) | |||||||||||||
USD | 453,651 | EUR | 353,000 | 10/12 | CSF | (18,875 | ) | |||||||||||||
USD | 192,797 | EUR | 150,000 | 10/12 | RBC | (4,171 | ) | |||||||||||||
USD | 456,062 | EUR | 353,000 | 11/12 | CSF | — | ||||||||||||||
USD | 334,255 | EUR | 260,000 | 11/12 | HSB | 2,758 | ||||||||||||||
USD | 250,290 | GBP | 155,000 | 10/12 | CSF | (7,041 | ) | |||||||||||||
USD | 27,449 | GBP | 17,000 | 10/12 | JPM | (211 | ) | |||||||||||||
USD | 250,945 | GBP | 155,000 | 11/12 | CSF | — | ||||||||||||||
USD | 872,881 | GBP | 540,000 | 11/12 | HSB | 5,978 | ||||||||||||||
USD | 199,908 | JPY | 15,600,000 | 10/12 | CSF | (3,553 | ) | |||||||||||||
USD | 74,338 | JPY | 5,800,000 | 10/12 | JPM | (131 | ) | |||||||||||||
USD | 10,894 | JPY | 850,000 | 10/12 | RBC | (50 | ) | |||||||||||||
USD | 485,911 | JPY | 36,300,000 | 11/12 | HSB | (588 | ) | |||||||||||||
|
| |||||||||||||||||||
Total Forward Foreign Currency Contracts |
| ($30,152 | ) | |||||||||||||||||
|
|
(d) | Purchased options outstanding as of September 30, 2012 were as follows: |
Options on Exchange-Traded Futures Contracts
Description | Exercise Price | Expiration Date | Counterparty | Number of Contracts | Cost | Value | ||||||||||||||
Put - CME S&P 500 Index Futures (11/12) | $1,370.00 | 11/17/12 | GSC | 9 | $30,717 | $10,260 | ||||||||||||||
|
|
|
| |||||||||||||||||
Options on Securities | ||||||||||||||||||||
Description | Strike Price | Expiration Date | Counterparty | Number of Contracts | Cost | Value | ||||||||||||||
Call - CME Microsoft Corp | $30.00 | 01/19/13 | GSC | 204 | $46,308 | $24,480 | ||||||||||||||
Call - CME Valeant Pharmaceuticals International Inc | 52.50 | 01/19/13 | GSC | 57 | 40,822 | 38,190 | ||||||||||||||
|
|
|
| |||||||||||||||||
$87,130 | $62,670 | |||||||||||||||||||
|
|
|
| |||||||||||||||||
Total Purchased Options | $117,847 | $72,930 | ||||||||||||||||||
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-41
PACIFIC LIFE FUNDS
PL GROWTH LT FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
(e) | Transactions in written options for the six-month period ended September 30, 2012 were as follows: |
Number of Contracts | Premium | |||||||
Outstanding, March 31, 2012 | — | $— | ||||||
Call Options Written | 80 | 138,583 | ||||||
Call Options Closed | (40 | ) | (133,712 | ) | ||||
|
|
|
| |||||
Outstanding, September 30, 2012 | 40 | $4,871 | ||||||
|
|
|
|
(f) | Premium received and value of written options outstanding as of September 30, 2012 were as follows: |
Options on securities
Description | Strike Price | Expiration Date | Counterparty | Number of Contracts | Premium | Value | ||||||||||
Call - CME ebay Inc | $50.00 | 10/20/2012 | GSC | 40 | $4,871 | ($4,040) | ||||||||||
|
| |||||||||||||||
Total Written Options | $4,871 | ($4,040) | ||||||||||||||
|
|
(g) | Fair Value Measurements |
The following is a summary of the fund’s investments as categorized under the three-tier hierarchy of inputs used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Common Stocks | |||||||||||||||||
Consumer Discretionary | $7,092,035 | $6,705,806 | $386,229 | $— | ||||||||||||||
Consumer Staples | 4,030,683 | 1,759,785 | 2,270,898 | — | ||||||||||||||
Energy | 2,245,148 | 2,245,148 | — | — | ||||||||||||||
Financials | 1,062,043 | 681,529 | 380,514 | — | ||||||||||||||
Health Care | 5,308,511 | 5,308,511 | — | — | ||||||||||||||
Industrials | 4,699,641 | 4,168,154 | 531,487 | — | ||||||||||||||
Information Technology | 11,888,838 | 11,646,728 | 242,110 | — | ||||||||||||||
Materials | 1,401,811 | 1,401,811 | — | — | ||||||||||||||
Telecommunication Services | 348,255 | 348,255 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
38,076,965 | 34,265,727 | 3,811,238 | — | |||||||||||||||
Short-Term Investments | 2,934,991 | 934,991 | 2,000,000 | |||||||||||||||
Derivatives: | ||||||||||||||||||
Equity Contracts | ||||||||||||||||||
Purchased Options | 72,930 | 72,930 | — | — | ||||||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Forward Foreign Currency Contracts | 8,736 | — | 8,736 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Assets Derivatives | 81,666 | 72,930 | 8,736 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Assets | 41,093,622 | 35,273,648 | 5,819,974 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Liabilities | Derivatives: | |||||||||||||||||
Equity Contracts | ||||||||||||||||||
Written Options | (4,040 | ) | (4,040 | ) | — | — | ||||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Forward Foreign Currency Contracts | (38,888 | ) | — | (38,888 | ) | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities | (42,928 | ) | (4,040 | ) | (38,888 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $41,050,694 | $35,269,608 | $5,781,086 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
During the six-month period ended September 30, 2012, an investment with a value of $380,573 was transferred from level 2 to level 1 due to the removal of valuation adjustments made to exchange-traded prices.
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-42
PACIFIC LIFE FUNDS
PL LARGE-CAP GROWTH FUND
Schedule of Investments
September 30, 2012 (Unaudited)
| Value | |||||||
COMMON STOCKS - 97.3% | ||||||||
Consumer Discretionary - 20.4% | ||||||||
Amazon.com Inc * | 20,800 | $5,289,856 | ||||||
DIRECTV * | 51,800 | 2,717,428 | ||||||
Discovery Communications Inc ‘A’ * | 4,100 | 244,483 | ||||||
Dollar General Corp * | 64,200 | 3,308,868 | ||||||
Las Vegas Sands Corp | 75,500 | 3,500,935 | ||||||
Lululemon Athletica Inc * | 30,500 | 2,255,170 | ||||||
Michael Kors Holdings Ltd (United Kingdom) * | 20,100 | 1,068,918 | ||||||
Nike Inc ‘B’ | 27,900 | 2,647,989 | ||||||
priceline.com Inc * | 5,600 | 3,464,888 | ||||||
Ralph Lauren Corp | 20,900 | 3,160,707 | ||||||
|
| |||||||
27,659,242 | ||||||||
|
| |||||||
Consumer Staples - 6.6% | ||||||||
CVS Caremark Corp | 68,400 | 3,311,928 | ||||||
Monster Beverage Corp * | 30,700 | 1,662,712 | ||||||
The Estee Lauder Cos Inc ‘A’ | 64,600 | 3,977,422 | ||||||
|
| |||||||
8,952,062 | ||||||||
|
| |||||||
Energy - 8.1% | ||||||||
Cabot Oil & Gas Corp | 31,600 | 1,418,840 | ||||||
Concho Resources Inc * | 32,600 | 3,088,850 | ||||||
EOG Resources Inc | 9,900 | 1,109,295 | ||||||
FMC Technologies Inc * | 73,500 | 3,403,050 | ||||||
Schlumberger Ltd (Netherlands) | 26,100 | 1,887,813 | ||||||
|
| |||||||
10,907,848 | ||||||||
|
| |||||||
Health Care - 12.8% | ||||||||
Agilent Technologies Inc | 75,000 | 2,883,750 | ||||||
Allergan Inc | 51,700 | 4,734,686 | ||||||
Biogen Idec Inc * | 11,400 | 1,701,222 | ||||||
Gilead Sciences Inc * | 49,800 | 3,303,234 | ||||||
Intuitive Surgical Inc * | 2,200 | 1,090,386 | ||||||
UnitedHealth Group Inc | 64,200 | 3,557,322 | ||||||
|
| |||||||
17,270,600 | ||||||||
|
| |||||||
Industrials - 9.7% | ||||||||
Cummins Inc | 19,700 | 1,816,537 | ||||||
Danaher Corp | 57,400 | 3,165,610 | ||||||
IHS Inc ‘A’ * | 8,400 | 817,740 | ||||||
Roper Industries Inc | 11,700 | 1,285,713 | ||||||
Union Pacific Corp | 22,200 | 2,635,140 | ||||||
United Technologies Corp | 43,400 | 3,397,786 | ||||||
|
| |||||||
13,118,526 | ||||||||
|
| |||||||
Information Technology - 37.0% | ||||||||
Apple Inc | 17,900 | 11,943,954 | ||||||
Baidu Inc ADR (Cayman) * | 22,200 | 2,593,404 | ||||||
eBay Inc * | 36,800 | 1,781,488 | ||||||
Facebook Inc ‘A’ * | 94,600 | 2,048,090 | ||||||
Google Inc ‘A’ * | 6,400 | 4,828,800 | ||||||
MasterCard Inc ‘A’ | 5,900 | 2,663,732 | ||||||
MercadoLibre Inc | 14,300 | 1,180,465 | ||||||
NetApp Inc * | 89,800 | 2,952,624 | ||||||
QUALCOMM Inc | 76,500 | 4,780,485 | ||||||
Riverbed Technology Inc * | 13,900 | 323,453 | ||||||
salesforce.com inc * | 18,300 | 2,794,227 | ||||||
Teradata Corp * | 26,700 | 2,013,447 | ||||||
VeriSign Inc * | 22,800 | 1,110,132 | ||||||
Visa Inc ‘A’ | 45,000 | 6,042,600 | ||||||
VMware Inc ‘A’ * | 32,100 | 3,105,354 | ||||||
|
| |||||||
50,162,255 | ||||||||
|
| |||||||
Materials - 1.5% | ||||||||
The Sherwin-Williams Co | 13,600 | 2,025,176 | ||||||
|
|
| Value | |||||||
Telecommunication Services - 1.2% | ||||||||
Crown Castle International Corp * | 26,100 | $1,673,010 | ||||||
|
| |||||||
Total Common Stocks | 131,768,719 | |||||||
|
| |||||||
EXCHANGE-TRADED FUND - 0.6% | ||||||||
iShares Russell 1000 Growth Index Fund | 13,200 | 880,440 | ||||||
|
| |||||||
Total Exchange-Traded Fund | 880,440 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT - 0.6% | ||||||||
Money Market Fund - 0.6% | ||||||||
BlackRock Liquidity Funds Treasury | 774,210 | 774,210 | ||||||
|
| |||||||
Total Short-Term Investment | 774,210 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 98.5% | 133,423,369 | |||||||
OTHER ASSETS & LIABILITIES, NET - 1.5% | 2,030,876 | |||||||
|
| |||||||
NET ASSETS - 100.0% | $135,454,245 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Information Technology | 37.0% | |||
Consumer Discretionary | 20.4% | |||
Health Care | 12.8% | |||
Industrials | 9.7% | |||
Energy | 8.1% | |||
Consumer Staples | 6.6% | |||
Materials | 1.5% | |||
Telecommunication Services | 1.2% | |||
Exchange-Traded Fund | 0.6% | |||
Short-Term Investment | 0.6% | |||
|
| |||
98.5% | ||||
Other Assets & Liabilities, Net | 1.5% | |||
|
| |||
100.0% | ||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-43
PACIFIC LIFE FUNDS
PL LARGE-CAP GROWTH FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
(b) | Fair Value Measurements |
The following is a summary of the fund’s investments as categorized under the three-tier hierarchy of inputs used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Common Stocks (1) | $131,768,719 | $131,768,719 | $— | $— | |||||||||||||
Exchange-Traded Fund | 880,440 | 880,440 | — | — | ||||||||||||||
Short-Term Investment | 774,210 | 774,210 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $133,423,369 | $133,423,369 | $— | $— | ||||||||||||||
|
|
|
|
|
|
|
|
(1) | For equity investments categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-44
PACIFIC LIFE FUNDS
PL LARGE-CAP VALUE FUND
Schedule of Investments
September 30, 2012 (Unaudited)
| Value | |||||||
COMMON STOCKS - 96.4% | ||||||||
Consumer Discretionary - 16.1% | ||||||||
DISH Network Corp ‘A’ | 202,386 | $6,195,036 | ||||||
McDonald’s Corp | 30,386 | 2,787,916 | ||||||
News Corp ‘A’ | 468,222 | 11,485,486 | ||||||
SES SA FDR (Luxembourg) | 132,967 | 3,622,031 | ||||||
Target Corp | 62,190 | 3,947,199 | ||||||
The Home Depot Inc | 99,367 | 5,998,786 | ||||||
Time Warner Cable Inc | 98,820 | 9,393,829 | ||||||
Time Warner Inc | 215,939 | 9,788,515 | ||||||
|
| |||||||
53,218,798 | ||||||||
|
| |||||||
Consumer Staples - 12.4% | ||||||||
Altria Group Inc | 111,219 | 3,713,602 | ||||||
Anheuser-Busch InBev NV ADR (Belgium) | 68,410 | 5,877,103 | ||||||
CVS Caremark Corp | 201,499 | 9,756,582 | ||||||
Kimberly-Clark Corp | 73,119 | 6,272,148 | ||||||
Lorillard Inc | 34,022 | 3,961,862 | ||||||
Philip Morris International Inc | 125,880 | 11,321,647 | ||||||
|
| |||||||
40,902,944 | ||||||||
|
| |||||||
Energy - 11.0% | ||||||||
Apache Corp | 33,603 | 2,905,651 | ||||||
Chevron Corp | 86,745 | 10,110,997 | ||||||
Exxon Mobil Corp | 91,878 | 8,402,243 | ||||||
Halliburton Co | 123,567 | 4,162,972 | ||||||
Royal Dutch Shell PLC ‘A’ ADR (United Kingdom) | 57,858 | 4,015,924 | ||||||
Suncor Energy Inc (Canada) | 95,660 | 3,142,431 | ||||||
Transocean Ltd (Switzerland) | 82,694 | 3,712,134 | ||||||
|
| |||||||
36,452,352 | ||||||||
|
| |||||||
Financials - 22.8% | ||||||||
American Express Co | 91,739 | 5,216,280 | ||||||
Capital One Financial Corp | 72,473 | 4,131,686 | ||||||
JPMorgan Chase & Co | 290,625 | 11,764,500 | ||||||
Loews Corp | 104,411 | 4,307,998 | ||||||
Marsh & McLennan Cos Inc | 161,793 | 5,489,636 | ||||||
MetLife Inc | 105,417 | 3,632,670 | ||||||
State Street Corp | 151,351 | 6,350,688 | ||||||
The Bank of New York Mellon Corp | 93,121 | 2,106,397 | ||||||
The Progressive Corp | 142,762 | 2,960,884 | ||||||
The Travelers Cos Inc | 87,965 | 6,004,491 | ||||||
U.S. Bancorp | 320,642 | 10,998,021 | ||||||
Wells Fargo & Co | 354,596 | 12,244,200 | ||||||
|
| |||||||
75,207,451 | ||||||||
|
| |||||||
Health Care - 8.5% | ||||||||
Johnson & Johnson | 80,963 | 5,579,160 | ||||||
Merck & Co Inc | 169,913 | 7,663,076 | ||||||
Novartis AG ADR (Switzerland) | 57,493 | 3,522,021 | ||||||
Pfizer Inc | 159,785 | 3,970,657 | ||||||
Teva Pharmaceutical Industries Ltd ADR (Israel) | 75,818 | 3,139,623 | ||||||
WellPoint Inc | 72,126 | 4,184,029 | ||||||
|
| |||||||
28,058,566 | ||||||||
|
| |||||||
Industrials - 9.4% | ||||||||
General Electric Co | 348,224 | 7,908,167 | ||||||
Honeywell International Inc | 122,401 | 7,313,460 | ||||||
Illinois Tool Works Inc | 103,075 | 6,129,870 | ||||||
Raytheon Co | 60,482 | 3,457,151 | ||||||
United Technologies Corp | 78,217 | 6,123,609 | ||||||
|
| |||||||
30,932,257 | ||||||||
|
| |||||||
Information Technology - 8.1% | ||||||||
Hewlett-Packard Co | 103,122 | 1,759,261 | ||||||
International Business Machines Corp | 35,658 | 7,397,252 | ||||||
Microsoft Corp | 153,890 | 4,582,844 | ||||||
Motorola Solutions Inc | 97,467 | 4,926,957 |
| Value | |||||||
TE Connectivity Ltd (Switzerland) | 133,505 | $4,540,505 | ||||||
Xerox Corp | 498,422 | 3,658,417 | ||||||
|
| |||||||
26,865,236 | ||||||||
|
| |||||||
Materials - 2.9% | ||||||||
Air Products & Chemicals Inc | 58,049 | 4,800,652 | ||||||
Crown Holdings Inc * | 124,829 | 4,587,466 | ||||||
|
| |||||||
9,388,118 | ||||||||
|
| |||||||
Telecommunication Services - 3.2% | ||||||||
AT&T Inc | 109,591 | 4,131,581 | ||||||
CenturyLink Inc | 78,085 | 3,154,634 | ||||||
Verizon Communications Inc | 74,652 | 3,401,892 | ||||||
|
| |||||||
10,688,107 | ||||||||
|
| |||||||
Utilities - 2.0% | ||||||||
Sempra Energy | 102,152 | 6,587,782 | ||||||
|
| |||||||
Total Common Stocks | 318,301,611 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT - 3.4% | ||||||||
Money Market Fund - 3.4% | ||||||||
BlackRock Liquidity Funds Treasury | 11,287,562 | 11,287,562 | ||||||
|
| |||||||
Total Short-Term Investment | 11,287,562 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 99.8% | 329,589,173 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.2% | 615,927 | |||||||
|
| |||||||
NET ASSETS - 100.0% | $330,205,100 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Financials | 22.8% | |||
Consumer Discretionary | 16.1% | |||
Consumer Staples | 12.4% | |||
Energy | 11.0% | |||
Industrials | 9.4% | |||
Health Care | 8.5% | |||
Information Technology | 8.1% | |||
Short-Term Investment | 3.4% | |||
Telecommunication Services | 3.2% | |||
Materials | 2.9% | |||
Utilities | 2.0% | |||
|
| |||
99.8% | ||||
Other Assets & Liabilities, Net | 0.2% | |||
|
| |||
100.0% | ||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-45
PACIFIC LIFE FUNDS
PL LARGE-CAP VALUE FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
(b) | Fair Value Measurements |
The following is a summary of the fund’s investments as categorized under the three-tier hierarchy of inputs used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant | Level 3 Significant | |||||||||||||||
Assets | Common Stocks | |||||||||||||||||
Consumer Discretionary | $53,218,798 | $49,596,767 | $3,622,031 | $— | ||||||||||||||
Consumer Staples | 40,902,944 | 40,902,944 | — | — | ||||||||||||||
Energy | 36,452,352 | 36,452,352 | — | — | ||||||||||||||
Financials | 75,207,451 | 75,207,451 | — | — | ||||||||||||||
Health Care | 28,058,566 | 28,058,566 | — | — | ||||||||||||||
Industrials | 30,932,257 | 30,932,257 | — | — | ||||||||||||||
Information Technology | 26,865,236 | 26,865,236 | — | — | ||||||||||||||
Materials | 9,388,118 | 9,388,118 | — | — | ||||||||||||||
Telecommunication Services | 10,688,107 | 10,688,107 | — | — | ||||||||||||||
Utilities | 6,587,782 | 6,587,782 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
318,301,611 | 314,679,580 | 3,622,031 | — | |||||||||||||||
Short-Term Investment | 11,287,562 | 11,287,562 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $329,589,173 | $325,967,142 | $3,622,031 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-46
PACIFIC LIFE FUNDS
PL MAIN STREET® CORE FUND
Schedule of Investments
September 30, 2012 (Unaudited)
| Value | |||||||
WARRANTS - 0.0% | ||||||||
Energy - 0.0% | ||||||||
Kinder Morgan Inc Strike @ $40.00 | 5,075 | $17,712 | ||||||
|
| |||||||
Total Warrants | 17,712 | |||||||
|
| |||||||
PREFERRED STOCKS - 0.3% | ||||||||
Consumer Staples - 0.3% | ||||||||
Henkel AG & Co KGaA (Germany) | 7,285 | 579,757 | ||||||
|
| |||||||
Total Preferred Stocks | 579,757 | |||||||
|
| |||||||
COMMON STOCKS - 98.1% | ||||||||
Consumer Discretionary - 9.1% | ||||||||
AutoZone Inc * | 10,350 | 3,826,084 | ||||||
CarMax Inc * | 81,640 | 2,310,412 | ||||||
Ford Motor Co | 457,812 | 4,514,026 | ||||||
Hyatt Hotels Corp ‘A’ * | 8,218 | 329,953 | ||||||
The McGraw-Hill Cos Inc | 93,818 | 5,121,525 | ||||||
The TJX Cos Inc | 55,790 | 2,498,834 | ||||||
Yum! Brands Inc | 15,860 | 1,052,152 | ||||||
|
| |||||||
19,652,986 | ||||||||
|
| |||||||
Consumer Staples - 10.3% | ||||||||
Dr Pepper Snapple Group Inc | 109,750 | 4,887,167 | ||||||
Kraft Foods Inc | 20,620 | 547,461 | ||||||
Kraft Foods Inc ‘A’ | 51,840 | 2,143,584 | ||||||
Philip Morris International Inc | 107,500 | 9,668,550 | ||||||
The J.M. Smucker Co | 55,450 | 4,786,999 | ||||||
|
| |||||||
22,033,761 | ||||||||
|
| |||||||
Energy - 11.1% | ||||||||
Chevron Corp | 85,284 | 9,940,703 | ||||||
Kinder Morgan Inc | 51,815 | 1,840,469 | ||||||
National Oilwell Varco Inc | 95,650 | 7,662,522 | ||||||
Noble Energy Inc | 46,208 | 4,283,944 | ||||||
|
| |||||||
23,727,638 | ||||||||
|
| |||||||
Financials - 17.4% | ||||||||
CIT Group Inc * | 190,480 | 7,503,007 | ||||||
Citigroup Inc | 251,357 | 8,224,401 | ||||||
CME Group Inc ‘A’ | 62,110 | 3,558,903 | ||||||
Discover Financial Services | 76,930 | 3,056,428 | ||||||
IntercontinentalExchange Inc * | 2,380 | 317,516 | ||||||
JPMorgan Chase & Co | 198,910 | 8,051,877 | ||||||
M&T Bank Corp | 12,720 | 1,210,435 | ||||||
Marsh & McLennan Cos Inc | 110,960 | 3,764,873 | ||||||
MSCI Inc * | 43,450 | 1,555,076 | ||||||
|
| |||||||
37,242,516 | ||||||||
|
| |||||||
Health Care - 12.1% | ||||||||
Abbott Laboratories | 96,870 | 6,641,407 | ||||||
Bristol-Myers Squibb Co | 138,940 | 4,689,225 | ||||||
Covidien PLC (Ireland) | 115,040 | 6,835,677 | ||||||
DaVita Inc * | 4,820 | 499,400 | ||||||
Express Scripts Holding Co * | 78,539 | 4,922,039 | ||||||
Watson Pharmaceuticals Inc * | 27,130 | 2,310,391 | ||||||
|
| |||||||
25,898,139 | ||||||||
|
| |||||||
Industrials - 11.0% | ||||||||
CSX Corp | 215,650 | 4,474,737 | ||||||
L-3 Communications Holdings Inc | 15,850 | 1,136,604 |
| Value | |||||||
QR National Ltd (Australia) | 118,900 | $419,072 | ||||||
The Boeing Co | 58,338 | 4,061,491 | ||||||
Towers Watson & Co ‘A’ | 42,490 | 2,254,095 | ||||||
Tyco International Ltd (Switzerland) | 117,145 | 6,590,578 | ||||||
United Parcel Service Inc ‘B’ | 65,606 | 4,695,421 | ||||||
|
| |||||||
23,631,998 | ||||||||
|
| |||||||
Information Technology - 21.6% | ||||||||
Apple Inc | 25,662 | 17,123,226 | ||||||
Corning Inc | 125,820 | 1,654,533 | ||||||
eBay Inc * | 167,940 | 8,129,975 | ||||||
Facebook Inc ‘A’ * | 60,040 | 1,299,866 | ||||||
Google Inc ‘A’ * | 4,606 | 3,475,227 | ||||||
International Business Machines Corp | 46,430 | 9,631,904 | ||||||
QUALCOMM Inc | 47,252 | 2,952,777 | ||||||
Western Digital Corp | 51,860 | 2,008,538 | ||||||
|
| |||||||
46,276,046 | ||||||||
|
| |||||||
Materials - 2.0% | ||||||||
PPG Industries Inc | 4,890 | 561,568 | ||||||
Vulcan Materials Co | 80,160 | 3,791,568 | ||||||
|
| |||||||
4,353,136 | ||||||||
|
| |||||||
Telecommunication Services - 2.2% | ||||||||
America Movil SAB de CV ‘L’ ADR (Mexico) | 187,370 | 4,766,693 | ||||||
|
| |||||||
Utilities - 1.3% | ||||||||
The AES Corp * | 249,708 | 2,739,296 | ||||||
|
| |||||||
Total Common Stocks | 210,322,209 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT - 1.6% | ||||||||
Money Market Fund - 1.6% | ||||||||
BlackRock Liquidity Funds Treasury | 3,478,231 | 3,478,231 | ||||||
|
| |||||||
Total Short-Term Investment | 3,478,231 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 100.0% | 214,397,909 | |||||||
OTHER ASSETS & LIABILITIES, NET - (0.0%) |
| (7,712 | ) | |||||
|
| |||||||
NET ASSETS - 100.0% | $214,390,197 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Information Technology | 21.6% | |||
Financials | 17.4% | |||
Health Care | 12.1% | |||
Energy | 11.1% | |||
Industrials | 11.0% | |||
Consumer Staples | 10.6% | |||
Consumer Discretionary | 9.1% | |||
Telecommunication Services | 2.2% | |||
Materials | 2.0% | |||
Short-Term Investment | 1.6% | |||
Utilities | 1.3% | |||
|
| |||
100.0% | ||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-47
PACIFIC LIFE FUNDS
PL MAIN STREET CORE FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
(b) | Fair Value Measurements |
The following is a summary of the fund’s investments as categorized under the three-tier hierarchy of inputs used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Warrants (1) | $17,712 | $17,712 | $— | $— | |||||||||||||
Preferred Stocks (1) | 579,757 | — | 579,757 | — | ||||||||||||||
Common Stocks | ||||||||||||||||||
Consumer Discretionary | 19,652,986 | 19,652,986 | — | — | ||||||||||||||
Consumer Staples | 22,033,761 | 22,033,761 | — | — | ||||||||||||||
Energy | 23,727,638 | 23,727,638 | — | — | ||||||||||||||
Financials | 37,242,516 | 37,242,516 | — | — | ||||||||||||||
Health Care | 25,898,139 | 25,898,139 | — | — | ||||||||||||||
Industrials | 23,631,998 | 23,212,926 | 419,072 | — | ||||||||||||||
Information Technology | 46,276,046 | 46,276,046 | — | — | ||||||||||||||
Materials | 4,353,136 | 4,353,136 | — | — | ||||||||||||||
Telecommunication Services | 4,766,693 | 4,766,693 | — | — | ||||||||||||||
Utilities | 2,739,296 | 2,739,296 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
210,322,209 | 209,903,137 | 419,072 | — | |||||||||||||||
Short-Term Investment | 3,478,231 | 3,478,231 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $214,397,909 | $213,399,080 | $998,829 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
(1) | For equity investments categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-48
PACIFIC LIFE FUNDS
PL MID-CAP EQUITY FUND
Schedule of Investments
September 30, 2012 (Unaudited)
| Value | |||||||
CONVERTIBLE PREFERRED STOCKS - 0.5% | ||||||||
Industrials - 0.5% | ||||||||
Better Place LLC ‘B’ 8.000% * ¯ + r | 229,480 | $688,440 | ||||||
|
| |||||||
Total Convertible Preferred Stocks | 688,440 | |||||||
|
| |||||||
COMMON STOCKS - 96.7% | ||||||||
Consumer Discretionary - 15.8% | ||||||||
American Eagle Outfitters Inc | 31,800 | 670,344 | ||||||
AutoZone Inc * | 7,050 | 2,606,173 | ||||||
Big Lots Inc * | 27,000 | 798,660 | ||||||
Darden Restaurants Inc | 21,490 | 1,198,067 | ||||||
Hasbro Inc | 36,000 | 1,374,120 | ||||||
Lear Corp | 34,000 | 1,284,860 | ||||||
Macy’s Inc | 116,200 | 4,371,444 | ||||||
Marriott International Inc | 59,500 | 2,326,450 | ||||||
Newell Rubbermaid Inc | 90,430 | 1,726,309 | ||||||
Ross Stores Inc | 29,500 | 1,905,700 | ||||||
The Interpublic Group of Cos Inc | 182,000 | 2,023,840 | ||||||
|
| |||||||
20,285,967 | ||||||||
|
| |||||||
Consumer Staples - 7.7% | ||||||||
HJ Heinz Co | 43,500 | 2,433,825 | ||||||
Molson Coors Brewing Co ‘B’ | 49,740 | 2,240,787 | ||||||
Ralcorp Holdings Inc * | 28,450 | 2,076,850 | ||||||
Sysco Corp | 100,800 | 3,152,016 | ||||||
|
| |||||||
9,903,478 | ||||||||
|
| |||||||
Energy - 6.4% | ||||||||
Cameron International Corp * | 34,300 | 1,923,201 | ||||||
EQT Corp | 24,600 | 1,451,400 | ||||||
Noble Energy Inc | 17,710 | 1,641,894 | ||||||
Rosetta Resources Inc * | 18,000 | 862,200 | ||||||
Rowan Cos PLC ‘A’ (United Kingdom) * | 71,540 | 2,415,906 | ||||||
|
| |||||||
8,294,601 | ||||||||
|
| |||||||
Financials - 13.9% | ||||||||
Ameriprise Financial Inc | 25,600 | 1,451,264 | ||||||
CBRE Group Inc ‘A’ * | 68,100 | 1,253,721 | ||||||
Duke Realty Corp REIT | 63,800 | 937,860 | ||||||
East West Bancorp Inc | 96,300 | 2,033,856 | ||||||
Invesco Ltd (Bermuda) | 61,000 | 1,524,390 | ||||||
Kilroy Realty Corp REIT | 46,200 | 2,068,836 | ||||||
PartnerRe Ltd (Bermuda) | 17,690 | 1,314,013 | ||||||
PS Business Parks Inc REIT | 14,800 | 988,936 | ||||||
Regions Financial Corp | 146,100 | 1,053,381 | ||||||
Signature Bank * | 27,700 | 1,858,116 | ||||||
The Macerich Co REIT | 34,600 | 1,980,158 | ||||||
Willis Group Holdings PLC (Ireland) | 38,300 | 1,414,036 | ||||||
|
| |||||||
17,878,567 | ||||||||
|
| |||||||
Health Care - 14.7% | ||||||||
Aetna Inc | 41,600 | 1,647,360 | ||||||
Agilent Technologies Inc | 41,500 | 1,595,675 | ||||||
AmerisourceBergen Corp | 103,800 | 4,018,098 | ||||||
CareFusion Corp * | 79,800 | 2,265,522 | ||||||
Henry Schein Inc * | 20,900 | 1,656,743 | ||||||
Humana Inc | 11,400 | 799,710 | ||||||
Medicis Pharmaceutical Corp ‘A’ | 35,500 | 1,536,085 | ||||||
Vertex Pharmaceuticals Inc * | 30,900 | 1,728,855 | ||||||
Zimmer Holdings Inc | 53,080 | 3,589,270 | ||||||
|
| |||||||
18,837,318 | ||||||||
|
|
| Value | |||||||
Industrials - 11.0% | ||||||||
BE Aerospace Inc * | 30,700 | $1,292,470 | ||||||
Corrections Corp of America | 18,690 | 625,180 | ||||||
Dover Corp | 50,640 | 3,012,574 | ||||||
Joy Global Inc | 12,400 | 695,144 | ||||||
Landstar System Inc | 24,700 | 1,167,816 | ||||||
Parker-Hannifin Corp | 34,900 | 2,916,942 | ||||||
Rockwell Collins Inc | 26,390 | 1,415,560 | ||||||
SPX Corp | 20,800 | 1,360,528 | ||||||
WESCO International Inc * | 29,600 | 1,693,120 | ||||||
|
| |||||||
14,179,334 | ||||||||
|
| |||||||
Information Technology - 21.9% | ||||||||
Amdocs Ltd (United Kingdom) | 43,100 | 1,421,869 | ||||||
Autodesk Inc * | 60,900 | 2,032,233 | ||||||
Avago Technologies Ltd (Singapore) | 26,900 | 937,869 | ||||||
BMC Software Inc * | 97,940 | 4,063,531 | ||||||
F5 Networks Inc * | 19,400 | 2,031,180 | ||||||
Fidelity National Information Services Inc | 92,900 | 2,900,338 | ||||||
Gartner Inc * | 17,000 | 783,530 | ||||||
Intuit Inc | 52,250 | 3,076,480 | ||||||
Marvell Technology Group Ltd (Bermuda) | 209,400 | 1,916,010 | ||||||
Microsemi Corp * | 57,500 | 1,154,025 | ||||||
NetApp Inc * | 73,300 | 2,410,104 | ||||||
Symantec Corp * | 66,600 | 1,198,800 | ||||||
TE Connectivity Ltd (Switzerland) | 38,300 | 1,302,583 | ||||||
Vantiv Inc ‘A’ * | 42,100 | 907,255 | ||||||
Xilinx Inc | 59,400 | 1,984,554 | ||||||
|
| |||||||
28,120,361 | ||||||||
|
| |||||||
Materials - 5.3% | ||||||||
Ball Corp | 52,220 | 2,209,428 | ||||||
Cliffs Natural Resources Inc | 17,050 | 667,166 | ||||||
Eastman Chemical Co | 60,820 | 3,467,348 | ||||||
Walter Energy Inc | 14,100 | 457,686 | ||||||
|
| |||||||
6,801,628 | ||||||||
|
| |||||||
Total Common Stocks | 124,301,254 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT - 3.9% | ||||||||
Money Market Fund - 3.9% | ||||||||
BlackRock Liquidity Funds Treasury | 4,938,917 | 4,938,917 | ||||||
|
| |||||||
Total Short-Term Investment | 4,938,917 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 101.1% | 129,928,611 | |||||||
OTHER ASSETS & LIABILITIES, NET - (1.1%) | (1,399,576 | ) | ||||||
|
| |||||||
NET ASSETS - 100.0% | $128,529,035 | |||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-49
PACIFIC LIFE FUNDS
PL MID-CAP EQUITY FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Information Technology | 21.9% | |||
Consumer Discretionary | 15.8% | |||
Health Care | 14.7% | |||
Financials | 13.9% | |||
Industrials | 11.5% | |||
Consumer Staples | 7.7% | |||
Energy | 6.4% | |||
Materials | 5.3% | |||
Short-Term Investment | 3.9% | |||
|
| |||
101.1% | ||||
Other Assets & Liabilities, Net | (1.1% | ) | ||
|
| |||
100.0% | ||||
|
|
(b) | An investment with a value of $688,440 or 0.5% of the fund’s net assets was valued by the Trustee Valuation Committee or determined by a valuation committee established under the Trust Procedures and then subsequently approved by the Board. |
(c) | As of September 30, 2012, 0.5% of the fund’s net assets were reported illiquid by the portfolio manager under the Trust’s policy. |
(d) | Restricted securities as of September 30, 2012 were as follows: |
Issuer and Acquisition Date | Cost | Value | Value as a % of Net Assets | |||||||||
Better Place LLC ‘B’ 8.000% | $573,700 | $688,440 | 0.5% | |||||||||
|
|
|
|
|
|
(e) | Fair Value Measurements |
The following is a summary of the fund’s investments as categorized under the three-tier hierarchy of inputs used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant | Level 3 Significant | |||||||||||||||
Assets | Convertible Preferred Stocks (1) | $688,440 | $— | $— | $688,440 | |||||||||||||
Common Stocks (1) | 124,301,254 | 124,301,254 | — | — | ||||||||||||||
Short-Term Investment | 4,938,917 | 4,938,917 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $129,928,611 | $129,240,171 | $— | $688,440 | ||||||||||||||
|
|
|
|
|
|
|
|
The following is a reconciliation of investments for significant unobservable inputs (Level 3) used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) for the six-month period ended September 30, 2012:
Convertible Preferred Stocks (1) | ||||
Value, Beginning of Period | $1,041,839 | |||
Purchases | — | |||
Sales | — | |||
Net Realized Gains (Losses) | — | |||
Change in Net Unrealized Depreciation | (353,399 | ) | ||
Transfers In | — | |||
Transfers Out | — | |||
|
| |||
Value, End of Period | $688,440 | |||
|
| |||
Change in Net Unrealized Depreciation on Level 3 | ($353,399 | ) | ||
|
|
Additional required information about certain Level 3 fair value measurements of the fund as of September 30, 2012 were as follows:
Value at 09/30/12 | Valuation Techniques | Unobservable Input | Range (Weighted Average) | |||||||
Convertible Preferred Stocks | $688,440 | Market Transaction Method | Purchase price of Better Place Series C Preferred Stock adjusted for performance versus milestones | NA | ||||||
|
|
| ||||||||
Discounted Cash Flow | Weighted Average Cost of Capital Perpetual Growth Rate | 22.5%-27.5% (25.0%) 2.5%-3.5% (3.0%) | ||||||||
|
|
| ||||||||
Market Comparable Companies | Enterprise Value / Revenue Discount for lack of marketability | 3.0x-3.6x (3.3x) 15.0% |
Significant increases or decreases in any of the unobservable inputs could result in a significantly higher or lower fair value measurement.
(1) | For equity investments categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-50
PACIFIC LIFE FUNDS
PL MID-CAP GROWTH FUND
Schedule of Investments
September 30, 2012 (Unaudited)
| Value | |||||||
CONVERTIBLE PREFERRED STOCKS - 0.6% |
| |||||||
Industrials - 0.6% | ||||||||
Better Place LLC ‘B’ 8.000% *¯+ r | 118,395 | $355,185 | ||||||
|
| |||||||
Total Convertible Preferred Stocks | 355,185 | |||||||
|
| |||||||
COMMON STOCKS - 90.0% | ||||||||
Consumer Discretionary - 10.1% | ||||||||
Dollar Tree Inc * | 13,025 | 628,782 | ||||||
Dunkin’ Brands Group Inc | 25,697 | 750,224 | ||||||
Groupon Inc * | 140,170 | 667,209 | ||||||
Morningstar Inc | 14,370 | 900,137 | ||||||
New Oriental Education & Technology Group ADR (Cayman) | 35,503 | 591,835 | ||||||
Tesla Motors Inc * | 8,768 | 256,727 | ||||||
The McGraw-Hill Cos Inc | 21,544 | 1,176,087 | ||||||
Weight Watchers International Inc | 24,573 | 1,297,454 | ||||||
|
| |||||||
6,268,455 | ||||||||
|
| |||||||
Consumer Staples - 3.6% | ||||||||
DE Master Blenders 1753 NV (Netherlands) * | 114,770 | 1,384,646 | ||||||
Mead Johnson Nutrition Co | 11,266 | 825,572 | ||||||
|
| |||||||
2,210,218 | ||||||||
|
| |||||||
Energy - 3.1% | ||||||||
Range Resources Corp | 19,081 | 1,333,189 | ||||||
Ultra Petroleum Corp (Canada) * | 27,757 | 610,099 | ||||||
|
| |||||||
1,943,288 | ||||||||
|
| |||||||
Financials - 6.8% | ||||||||
Greenhill & Co Inc | 10,002 | 517,604 | ||||||
IntercontinentalExchange Inc * | 7,239 | 965,755 | ||||||
MSCI Inc * | 47,233 | 1,690,469 | ||||||
The Progressive Corp | 51,657 | 1,071,366 | ||||||
|
| |||||||
4,245,194 | ||||||||
|
| |||||||
Health Care - 14.8% | ||||||||
athenahealth Inc * | 13,304 | 1,220,908 | ||||||
IDEXX Laboratories Inc * | 11,938 | 1,186,040 | ||||||
Illumina Inc * | 36,076 | 1,738,863 | ||||||
Intuitive Surgical Inc * | 3,853 | 1,909,662 | ||||||
Ironwood Pharmaceuticals Inc ‘A’ * | 31,899 | 407,669 | ||||||
Qualicorp SA (Brazil) * | 100,549 | 967,175 | ||||||
Techne Corp | 11,443 | 823,209 | ||||||
Valeant Pharmaceuticals | 17,327 | 957,663 | ||||||
|
| |||||||
9,211,189 | ||||||||
|
| |||||||
Industrials - 18.5% | ||||||||
Covanta Holding Corp | 41,516 | 712,415 | ||||||
Edenred (France) | 74,092 | 2,085,574 | ||||||
Expeditors International of Washington Inc | 28,006 | 1,018,298 | ||||||
Fastenal Co | 20,587 | 885,035 | ||||||
IHS Inc ‘A’ * | 11,627 | 1,131,888 | ||||||
Intertek Group PLC (United Kingdom) | 37,012 | 1,647,661 | ||||||
Sensata Technologies Holding NV (Netherlands) * | 29,951 | 891,641 | ||||||
Stericycle Inc * | 14,184 | 1,283,936 | ||||||
Verisk Analytics Inc ‘A’ * | 38,111 | 1,814,465 | ||||||
|
| |||||||
11,470,913 | ||||||||
|
| |||||||
Information Technology - 25.2% | ||||||||
Akamai Technologies Inc * | 24,082 | 921,378 | ||||||
Citrix Systems Inc * | 11,261 | 862,255 | ||||||
FactSet Research Systems Inc | 9,581 | 923,800 | ||||||
First Solar Inc * | 20,072 | 444,495 |
| Value | |||||||
Gartner Inc * | 29,342 | $1,352,373 | ||||||
LinkedIn Corp ‘A’ * | 15,128 | 1,821,411 | ||||||
MercadoLibre Inc | 7,985 | 659,162 | ||||||
Motorola Solutions Inc | 43,738 | 2,210,956 | ||||||
Red Hat Inc * | 15,858 | 902,955 | ||||||
salesforce.com Inc * | 9,743 | 1,487,659 | ||||||
SINA Corp (Cayman) * | 5,557 | 359,427 | ||||||
Solera Holdings Inc | 28,598 | 1,254,594 | ||||||
Yandex NV ‘A’ (Netherlands) * | 56,457 | 1,361,178 | ||||||
Youku Tudou Inc ADR (Cayman) * | 38,644 | 710,663 | ||||||
Zynga Inc ‘A’ * | 131,209 | 372,634 | ||||||
|
| |||||||
15,644,940 | ||||||||
|
| |||||||
Materials - 4.3% | ||||||||
Intrepid Potash Inc * | 29,051 | 624,015 | ||||||
Lynas Corp Ltd (Australia) * | 215,593 | 174,655 | ||||||
Martin Marietta Materials Inc | 8,279 | 686,081 | ||||||
Molycorp Inc * | 24,261 | 279,002 | ||||||
Rockwood Holdings Inc * | 19,167 | 893,182 | ||||||
|
| |||||||
2,656,935 | ||||||||
|
| |||||||
Utilities - 3.6% | ||||||||
Brookfield Infrastructure Partners LP (Bermuda) | 62,108 | 2,207,939 | ||||||
|
| |||||||
Total Common Stocks | 55,859,071 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT - 9.8% | ||||||||
Money Market Fund - 9.8% | ||||||||
BlackRock Liquidity Funds Treasury | 6,084,505 | 6,084,505 | ||||||
|
| |||||||
Total Short-Term Investment | 6,084,505 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 100.4% | 62,298,761 | |||||||
OTHER ASSETS & LIABILITIES, NET - (0.4%) |
| (261,303 | ) | |||||
|
| |||||||
NET ASSETS - 100.0% | $62,037,458 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Information Technology | 25.2% | |||
Industrials | 19.1% | |||
Health Care | 14.8% | |||
Consumer Discretionary | 10.1% | |||
Short-Term Investment | 9.8% | |||
Financials | 6.8% | |||
Materials | 4.3% | |||
Consumer Staples | 3.6% | |||
Utilities | 3.6% | |||
Energy | 3.1% | |||
|
| |||
100.4% | ||||
Other Assets & Liabilities, Net | (0.4% | ) | ||
|
| |||
100.0% | ||||
|
|
(b) | An investment with a value of $355,185 or 0.6% of the fund’s net assets was valued by the Trustee Valuation Committee or determined by a valuation committee established under the Trust Procedures and then subsequently approved by the Board. |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-51
PACIFIC LIFE FUNDS
PL MID-CAP GROWTH FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
(c) | As of September 30, 2012, 0.6% of the fund’s net assets were reported illiquid by the portfolio manager under the Trust’s policy. |
(d) | Restricted securities as of September 30, 2012 were as follows: |
Issuer and Acquisition Date | Cost | Value | Value as a % of Net Assets | |||||||||
Better Place LLC ‘B’ 8.000% | $295,986 | $355,185 | 0.6% | |||||||||
|
|
|
|
|
|
(e) | Fair Value Measurements |
The following is a summary of the fund’s investments as categorized under the three-tier hierarchy of inputs used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant | Level 3 Significant | |||||||||||||||
Assets | Convertible Preferred Stocks (1) | $355,185 | $— | $— | $355,185 | |||||||||||||
Common Stocks | ||||||||||||||||||
Consumer Discretionary | 6,268,455 | 6,268,455 | — | — | ||||||||||||||
Consumer Staples | 2,210,218 | 825,572 | 1,384,646 | — | ||||||||||||||
Energy | 1,943,288 | 1,943,288 | — | — | ||||||||||||||
Financials | 4,245,194 | 4,245,194 | — | — | ||||||||||||||
Health Care | 9,211,189 | 9,211,189 | — | — | ||||||||||||||
Industrials | 11,470,913 | 7,737,678 | 3,733,235 | — | ||||||||||||||
Information Technology | 15,644,940 | 15,644,940 | — | — | ||||||||||||||
Materials | 2,656,935 | 2,482,280 | 174,655 | — | ||||||||||||||
Utilities | 2,207,939 | 2,207,939 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
55,859,071 | 50,566,535 | 5,292,536 | — | |||||||||||||||
Short-Term Investment | 6,084,505 | 6,084,505 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $62,298,761 | $56,651,040 | $5,292,536 | $355,185 | ||||||||||||||
|
|
|
|
|
|
|
|
The following is a reconciliation of investments for significant unobservable inputs (Level 3) used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) for the six-month period ended September 30, 2012:
Convertible Preferred Stocks (1) | ||||
Value, Beginning of Period | $537,513 | |||
Purchases | — | |||
Sales | — | |||
Net Realized Gains (Losses) | — | |||
Change in Net Unrealized Depreciation | (182,328 | ) | ||
Transfers In | — | |||
Transfers Out | — | |||
|
| |||
Value, End of Period | $355,185 | |||
|
| |||
Change in Net Unrealized Depreciation on Level 3 | ($182,328 | ) | ||
|
|
Additional required information about certain Level 3 fair value measurements of the fund as of September 30, 2012 were as follows:
Value at 09/30/12 | Valuation Techniques | Unobservable Input | Range (Weighted Average) | |||||||
Convertible Preferred Stocks | $355,185 | Market Transaction Method | Purchase price of Better Place Series C Preferred Stock adjusted for performance versus milestones | NA | ||||||
Discounted Cash Flow | Weighted Average Cost of Capital Perpetual Growth Rate | 22.5%-27.5% (25.0%) 2.5%-3.5% (3.0%) | ||||||||
Market Comparable Companies | Enterprise Value / Revenue Discount for lack of marketability | 3.0x-3.6x (3.3x) 15.0% |
Significant increases or decreases in any of the unobservable inputs could result in a significantly higher or lower fair value measurement.
(1) | For equity investments categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-52
PACIFIC LIFE FUNDS
PL SMALL-CAP GROWTH FUND
Schedule of Investments
September 30, 2012 (Unaudited)
| Value | |||||||
COMMON STOCKS - 95.7% | ||||||||
Consumer Discretionary - 19.5% | ||||||||
American Axle & Manufacturing Holdings Inc * | 15,600 | $175,812 | ||||||
ANN Inc * | 14,000 | 528,220 | ||||||
Brunswick Corp | 15,950 | 360,948 | ||||||
Dana Holding Corp | 22,400 | 275,520 | ||||||
Domino’s Pizza Inc | 12,550 | 473,135 | ||||||
DSW Inc ‘A’ | 7,750 | 517,080 | ||||||
Fifth & Pacific Cos Inc * | 28,600 | 365,508 | ||||||
Five Below Inc * | 10,700 | 418,156 | ||||||
Gaylord Entertainment Co * | 9,500 | 375,535 | ||||||
Interval Leisure Group Inc | 11,865 | 224,604 | ||||||
Life Time Fitness Inc * | 8,170 | 373,696 | ||||||
Lions Gate Entertainment Corp (Canada) * | 22,200 | 338,994 | ||||||
LKQ Corp * | 21,600 | 399,600 | ||||||
Marriott Vacations Worldwide Corp * | 11,850 | 426,837 | ||||||
Pier 1 Imports Inc | 23,400 | 438,516 | ||||||
Six Flags Entertainment Corp | 8,850 | 520,380 | ||||||
Sotheby’s | 5,300 | 166,950 | ||||||
The Cheesecake Factory Inc | 9,950 | 355,712 | ||||||
The Children’s Place * | 7,330 | 439,800 | ||||||
The Warnaco Group Inc * | 4,400 | 228,360 | ||||||
Tupperware Brands Corp | 6,775 | 363,072 | ||||||
Vitamin Shoppe Inc * | 8,150 | 475,308 | ||||||
Wolverine World Wide Inc | 6,500 | 288,405 | ||||||
|
| |||||||
8,530,148 | ||||||||
|
| |||||||
Consumer Staples - 3.8% | ||||||||
B&G Foods Inc | 12,000 | 363,720 | ||||||
The Fresh Market Inc * | 4,950 | 296,901 | ||||||
The Hain Celestial Group Inc * | 7,535 | 474,705 | ||||||
United Natural Foods Inc * | 9,050 | 528,973 | ||||||
|
| |||||||
1,664,299 | ||||||||
|
| |||||||
Energy - 5.6% | ||||||||
Approach Resources Inc * | 6,100 | 183,793 | ||||||
Berry Petroleum Co ‘A’ | 9,400 | 381,922 | ||||||
Dril-Quip Inc * | 3,465 | 249,064 | ||||||
Energy XXI Ltd (Bermuda) | 10,950 | 382,703 | ||||||
Hornbeck Offshore Services Inc * | 5,550 | 203,407 | ||||||
Kodiak Oil & Gas Corp (Canada) * | 19,650 | 183,924 | ||||||
Lufkin Industries Inc | 3,900 | 209,898 | ||||||
Northern Oil & Gas Inc * | 12,100 | 205,579 | ||||||
Rosetta Resources Inc * | 9,150 | 438,285 | ||||||
|
| |||||||
2,438,575 | ||||||||
|
| |||||||
Financials - 9.0% | ||||||||
American Campus Communities Inc REIT | 7,450 | 326,906 | ||||||
Capstead Mortgage Corp REIT | 21,350 | 288,011 | ||||||
Cohen & Steers Inc | 9,300 | 275,466 | ||||||
Extra Space Storage Inc REIT | 10,700 | 355,775 | ||||||
Fortress Investment Group LLC ‘A’ | 59,900 | 264,758 | ||||||
Home Properties Inc REIT | 4,300 | 263,461 | ||||||
Jones Lang LaSalle Inc | 5,900 | 450,465 | ||||||
LaSalle Hotel Properties REIT | 12,450 | 332,290 | ||||||
Northwest Bancshares Inc | 25,650 | 313,700 | ||||||
SVB Financial Group * | 5,550 | 335,553 | ||||||
Texas Capital Bancshares Inc * | 6,000 | 298,260 | ||||||
Two Harbors Investment Corp REIT | 37,900 | 445,325 | ||||||
|
| |||||||
3,949,970 | ||||||||
|
| |||||||
Health Care - 16.5% | ||||||||
Accretive Health Inc * | 24,400 | 272,304 | ||||||
Acorda Therapeutics Inc * | 8,050 | 206,161 | ||||||
Align Technology Inc * | 9,550 | 353,063 | ||||||
Alkermes PLC (Ireland) * | 11,050 | 229,288 | ||||||
Bruker Corp * | 22,450 | 293,870 | ||||||
Cepheid Inc * | 5,950 | 205,334 | ||||||
Cubist Pharmaceuticals Inc * | 4,600 | 219,328 |
| Value | |||||||
Endologix Inc * | 21,200 | $292,984 | ||||||
Greenway Medical Technologies Inc * | 13,900 | 237,690 | ||||||
HealthSouth Corp * | 16,050 | 386,163 | ||||||
Idenix Pharmaceuticals Inc * | 28,000 | 127,960 | ||||||
Insulet Corp * | 18,270 | 394,267 | ||||||
Medivation Inc * | 5,800 | 326,888 | ||||||
NxStage Medical Inc * | 18,900 | 249,669 | ||||||
Optimer Pharmaceuticals Inc * | 13,110 | 185,113 | ||||||
PAREXEL International Corp * | 7,475 | 229,931 | ||||||
Pharmacyclics Inc * | 4,300 | 277,350 | ||||||
Questcor Pharmaceuticals Inc * | 5,900 | 109,150 | ||||||
Salix Pharmaceuticals Ltd * | 5,150 | 218,051 | ||||||
Seattle Genetics Inc * | 6,500 | 175,175 | ||||||
Synageva BioPharma Corp * | 2,850 | 152,276 | ||||||
Team Health Holdings Inc * | 10,550 | 286,222 | ||||||
Tenet Healthcare Corp * | 47,250 | 296,258 | ||||||
Theravance Inc * | 8,700 | 225,417 | ||||||
Thoratec Corp * | 6,520 | 225,592 | ||||||
ViroPharma Inc * | 6,450 | 194,919 | ||||||
Volcano Corp * | 12,300 | 351,411 | ||||||
WellCare Health Plans Inc * | 3,750 | 212,063 | ||||||
Wright Medical Group Inc * | 13,800 | 305,118 | ||||||
|
| |||||||
7,239,015 | ||||||||
|
| |||||||
Industrials - 14.2% | ||||||||
A.O. Smith Corp | 5,050 | 290,577 | ||||||
Actuant Corp ‘A’ | 17,395 | 497,845 | ||||||
Alaska Air Group Inc * | 5,550 | 194,583 | ||||||
Avis Budget Group Inc * | 20,000 | 307,600 | ||||||
Barnes Group Inc | 12,250 | 306,372 | ||||||
Clean Harbors Inc * | 6,900 | 337,065 | ||||||
Esterline Technologies Corp * | 7,380 | 414,313 | ||||||
Genesee & Wyoming Inc ‘A’ * | 7,820 | 522,845 | ||||||
Hub Group Inc ‘A’ * | 14,400 | 427,392 | ||||||
Lindsay Corp | 5,411 | 389,430 | ||||||
RBC Bearings Inc * | 10,315 | 496,152 | ||||||
Spirit Aerosystems Holdings Inc ‘A’ * | 16,150 | 358,692 | ||||||
Tetra Tech Inc * | 18,350 | 481,871 | ||||||
Towers Watson & Co ‘A’ | 4,200 | 222,810 | ||||||
United Rentals Inc * | 11,650 | 381,072 | ||||||
US Airways Group Inc * | 16,900 | 176,774 | ||||||
Watsco Inc | 4,600 | 348,634 | ||||||
Woodward Inc | 1,967 | 66,839 | ||||||
|
| |||||||
6,220,866 | ||||||||
|
| |||||||
Information Technology - 21.3% | ||||||||
3D Systems Corp * | 7,800 | 256,230 | ||||||
Applied Micro Circuits Corp * | 22,100 | 111,826 | ||||||
Aspen Technology Inc * | 11,250 | 290,812 | ||||||
BroadSoft Inc * | 7,650 | 313,803 | ||||||
Cadence Design Systems Inc * | 40,050 | 515,243 | ||||||
Cavium Inc * | 8,700 | 289,971 | ||||||
Ciena Corp * | 19,050 | 259,080 | ||||||
Cognex Corp | 12,650 | 437,437 | ||||||
CommVault Systems Inc * | 8,800 | 516,560 | ||||||
comScore Inc * | 24,550 | 374,387 | ||||||
Concur Technologies Inc * | 4,200 | 309,666 | ||||||
CoStar Group Inc * | 4,650 | 379,161 | ||||||
Cypress Semiconductor Corp * | 19,800 | 212,256 | ||||||
DealerTrack Holdings Inc * | 16,100 | 448,385 | ||||||
ExactTarget Inc * | 17,500 | 423,850 | ||||||
Finisar Corp * | 17,950 | 256,685 | ||||||
Fortinet Inc * | 12,100 | 292,094 | ||||||
Freescale Semiconductor Ltd (Bermuda) * | 23,350 | 222,059 | ||||||
InterXion Holding NV (Netherlands) * | 15,600 | 354,432 | ||||||
Microsemi Corp * | 18,650 | 374,306 | ||||||
NICE Systems Ltd ADR (Israel) * | 9,295 | 308,780 | ||||||
OpenTable Inc * | 6,840 | 284,544 | ||||||
QLIK Technologies Inc * | 18,650 | 417,947 | ||||||
Silicon Graphics International Corp * | 31,000 | 282,100 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-53
PACIFIC LIFE FUNDS
PL SMALL-CAP GROWTH FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
| Value | |||||||
Tangoe Inc * | 21,000 | $275,730 | ||||||
Ultimate Software Group Inc * | 4,900 | 500,290 | ||||||
Universal Display Corp * | 4,900 | 168,462 | ||||||
Wright Express Corp * | 6,915 | 482,114 | ||||||
|
| |||||||
9,358,210 | ||||||||
|
| |||||||
Materials - 4.2% | ||||||||
Cytec Industries Inc | 4,750 | 311,220 | ||||||
Globe Specialty Metals Inc | 10,000 | 152,200 | ||||||
Hecla Mining Co | 26,650 | 174,557 | ||||||
PolyOne Corp | 27,200 | 450,704 | ||||||
Rockwood Holdings Inc | 7,350 | 342,510 | ||||||
Silgan Holdings Inc | 9,440 | 410,734 | ||||||
|
| |||||||
1,841,925 | ||||||||
|
| |||||||
Telecommunication Services - 0.5% | ||||||||
Cogent Communications Group Inc | 10,150 | 233,348 | ||||||
|
| |||||||
Utilities - 1.1% | ||||||||
ITC Holdings Corp | 6,430 | 485,979 | ||||||
|
| |||||||
Total Common Stocks | 41,962,335 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT - 3.1% | ||||||||
Money Market Fund - 3.1% | ||||||||
BlackRock Liquidity Funds Treasury | 1,361,969 | 1,361,969 | ||||||
|
| |||||||
Total Short-Term Investment | 1,361,969 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 98.8% | 43,324,304 | |||||||
OTHER ASSETS & LIABILITIES, NET - 1.2% |
| 543,581 | ||||||
|
| |||||||
NET ASSETS - 100.0% | $43,867,885 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Information Technology | 21.3% | |||
Consumer Discretionary | 19.5% | |||
Health Care | 16.5% | |||
Industrials | 14.2% | |||
Financials | 9.0% | |||
Energy | 5.6% | |||
Materials | 4.2% | |||
Consumer Staples | 3.8% | |||
Short-Term Investment | 3.1% | |||
Utilities | 1.1% | |||
Telecommunication Services | 0.5% | |||
|
| |||
98.8% | ||||
Other Assets & Liabilities, Net | 1.2% | |||
|
| |||
100.0% | ||||
|
|
(b) | Fair Value Measurements |
The following is a summary of the fund’s investments as categorized under the three-tier hierarchy of inputs used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant Observable Input | Level 3 Significant | |||||||||||||||
Assets | Common Stocks (1) | $41,962,335 | $41,962,335 | $— | $— | |||||||||||||
Short-Term Investment | 1,361,969 | 1,361,969 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $43,324,304 | $43,324,304 | $— | $— | ||||||||||||||
|
|
|
|
|
|
|
|
(1) | For equity investments categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-54
PACIFIC LIFE FUNDS
PL SMALL-CAP VALUE FUND
Schedule of Investments
September 30, 2012 (Unaudited)
| Value | |||||||
COMMON STOCKS - 94.7% | ||||||||
Consumer Discretionary - 10.7% | ||||||||
Aaron’s Inc | 35,300 | $981,693 | ||||||
Bob Evans Farms Inc | 12,400 | 485,212 | ||||||
Cinemark Holdings Inc | 53,500 | 1,200,005 | ||||||
Cracker Barrel Old Country Store Inc | 5,299 | 355,616 | ||||||
Group 1 Automotive Inc | 20,700 | 1,246,761 | ||||||
Harman International Industries Inc | 26,000 | 1,200,160 | ||||||
Hillenbrand Inc | 24,500 | 445,655 | ||||||
International Game Technology | 84,437 | 1,105,280 | ||||||
Meredith Corp | 31,600 | 1,106,000 | ||||||
Sturm Ruger & Co Inc | 16,900 | 836,381 | ||||||
The Buckle Inc | 22,700 | 1,031,261 | ||||||
True Religion Apparel Inc | 17,500 | 373,275 | ||||||
Wolverine World Wide Inc | 27,700 | 1,229,049 | ||||||
|
| |||||||
11,596,348 | ||||||||
|
| |||||||
Consumer Staples - 5.9% | ||||||||
Cal-Maine Foods Inc | 17,300 | 777,462 | ||||||
Casey’s General Stores Inc | 5,791 | 330,898 | ||||||
Embotelladora Andina SA ‘B’ ADR (Chile) | 13,500 | 463,455 | ||||||
Fresh Del Monte Produce Inc (Cayman) | 13,600 | 348,160 | ||||||
Harris Teeter Supermarkets Inc | 25,700 | 998,188 | ||||||
Ingredion Inc | 25,600 | 1,412,096 | ||||||
The Andersons Inc | 17,909 | 674,453 | ||||||
Universal Corp | 21,600 | 1,099,872 | ||||||
Weis Markets Inc | 5,800 | 245,514 | ||||||
|
| |||||||
6,350,098 | ||||||||
|
| |||||||
Energy - 12.6% | ||||||||
Alliance Resource Partners LP | 10,400 | 623,480 | ||||||
Berry Petroleum Co ‘A’ | 31,400 | 1,275,782 | ||||||
Bristow Group Inc | 25,500 | 1,289,025 | ||||||
Buckeye Partners LP | 15,100 | 724,347 | ||||||
Cimarex Energy Co | 9,600 | 562,080 | ||||||
CVR Energy Inc * | 39,400 | 1,447,950 | ||||||
Energen Corp | 22,800 | 1,194,948 | ||||||
HollyFrontier Corp | 24,800 | 1,023,496 | ||||||
Pioneer Southwest Energy Partners LP | 13,400 | 344,782 | ||||||
Ship Finance International Ltd (Bermuda) | 28,400 | 446,448 | ||||||
Sunoco Logistics Partners LP | 23,400 | 1,091,610 | ||||||
TC Pipelines LP | 9,400 | 424,410 | ||||||
Tidewater Inc | 23,500 | 1,140,455 | ||||||
TransMontaigne Partners LP | 6,900 | 262,200 | ||||||
Western Refining Inc | 16,400 | 429,352 | ||||||
World Fuel Services Corp | 38,300 | 1,363,863 | ||||||
|
| |||||||
13,644,228 | ||||||||
|
| |||||||
Financials - 17.7% | ||||||||
American Equity Investment Life Holding Co | 24,300 | 282,609 | ||||||
American Financial Group Inc | 25,000 | 947,500 | ||||||
American Realty Capital Trust Inc REIT | 21,100 | 247,503 | ||||||
AmTrust Financial Services Inc | 17,930 | 459,366 | ||||||
Bank of Hawaii Corp | 22,400 | 1,021,888 | ||||||
CapitalSource Inc | 117,100 | 887,618 | ||||||
Cash America International Inc | 25,500 | 983,535 | ||||||
Community Trust Bancorp Inc | 3,100 | 110,159 | ||||||
CreXus Investment Corp REIT | 55,400 | 598,874 | ||||||
Cullen/Frost Bankers Inc | 14,600 | 838,478 | ||||||
Duff & Phelps Corp ‘A’ | 8,403 | 114,365 | ||||||
FirstMerit Corp | 11,500 | 169,395 | ||||||
Franklin Street Properties Corp REIT | 49,400 | 546,858 | ||||||
Fulton Financial Corp | 106,000 | 1,045,160 | ||||||
Hatteras Financial Corp REIT | 21,900 | 617,361 | ||||||
Lakeland Financial Corp | 4,962 | 136,951 | ||||||
Montpelier Re Holdings Ltd (Bermuda) | 14,609 | 323,297 | ||||||
Old National Bancorp | 41,800 | 568,898 | ||||||
Omega Healthcare Investors Inc REIT | 37,900 | 861,467 |
| Value | |||||||
Prosperity Bancshares Inc | 24,300 | $1,035,666 | ||||||
PS Business Parks Inc REIT | 11,000 | 735,020 | ||||||
Raymond James Financial Inc | 29,700 | 1,088,505 | ||||||
Retail Properties of America Inc ‘A’ REIT | 56,344 | 637,814 | ||||||
SEI Investments Co | 45,100 | 967,395 | ||||||
Southside Bancshares Inc | 7,300 | 159,213 | ||||||
Sovran Self Storage Inc REIT | 4,975 | 287,804 | ||||||
Starwood Property Trust Inc REIT | 33,200 | 772,564 | ||||||
Susquehanna Bancshares Inc | 59,900 | 626,554 | ||||||
Tompkins Financial Corp | 4,000 | 162,080 | ||||||
Trustmark Corp | 39,400 | 958,996 | ||||||
Washington Federal Inc | 48,431 | 807,829 | ||||||
WesBanco Inc | 7,129 | 147,642 | ||||||
|
| |||||||
19,148,364 | ||||||||
|
| |||||||
Health Care - 6.2% | ||||||||
Invacare Corp | 18,700 | 264,418 | ||||||
Owens & Minor Inc | 37,100 | 1,108,548 | ||||||
PerkinElmer Inc | 43,150 | 1,271,631 | ||||||
STERIS Corp | 34,500 | 1,223,715 | ||||||
Teleflex Inc | 18,400 | 1,266,656 | ||||||
The Cooper Cos Inc | 16,300 | 1,539,698 | ||||||
|
| |||||||
6,674,666 | ||||||||
|
| |||||||
Industrials - 17.2% | ||||||||
ABM Industries Inc | 10,600 | 200,658 | ||||||
Alliant Techsystems Inc | 22,200 | 1,112,442 | ||||||
Applied Industrial Technologies Inc | 9,700 | 401,871 | ||||||
Avery Dennison Corp | 29,200 | 929,144 | ||||||
Barnes Group Inc | 35,100 | 877,851 | ||||||
Belden Inc | 29,900 | 1,102,712 | ||||||
Cascade Corp | 5,547 | 303,643 | ||||||
Crane Co | 28,700 | 1,145,991 | ||||||
Cubic Corp | 7,100 | 355,426 | ||||||
Curtiss-Wright Corp | 30,600 | 1,000,620 | ||||||
Elbit Systems Ltd (Israel) | 3,900 | 132,756 | ||||||
Ennis Inc | 14,300 | 234,663 | ||||||
Great Lakes Dredge & Dock Co | 33,200 | 255,640 | ||||||
ITT Corp | 51,023 | 1,028,113 | ||||||
KBR Inc | 35,100 | 1,046,682 | ||||||
Kennametal Inc | 31,200 | 1,156,896 | ||||||
McGrath RentCorp | 4,933 | 128,702 | ||||||
Standex International Corp | 4,367 | 194,113 | ||||||
TAL International Group Inc | 17,400 | 591,252 | ||||||
Textainer Group Holdings Ltd (Bermuda) | 13,749 | 420,032 | ||||||
The Brink’s Co | 36,500 | 937,685 | ||||||
Titan International Inc | 40,300 | 711,698 | ||||||
Triumph Group Inc | 24,600 | 1,538,238 | ||||||
Twin Disc Inc | 962 | 17,220 | ||||||
UniFirst Corp | 7,000 | 467,530 | ||||||
Valmont Industries Inc | 11,900 | 1,564,850 | ||||||
Werner Enterprises Inc | 32,760 | 700,081 | ||||||
|
| |||||||
18,556,509 | ||||||||
|
| |||||||
Information Technology - 3.6% | ||||||||
AVX Corp | 22,600 | 216,734 | ||||||
Brooks Automation Inc | 30,500 | 244,915 | ||||||
Diebold Inc | 30,694 | 1,034,695 | ||||||
Fair Isaac Corp | 16,092 | 712,232 | ||||||
j2 Global Inc | 20,430 | 670,513 | ||||||
Jabil Circuit Inc | 51,200 | 958,464 | ||||||
|
| |||||||
3,837,553 | ||||||||
|
| |||||||
Materials - 14.5% | ||||||||
A. Schulman Inc | 19,800 | 471,636 | ||||||
AMCOL International Corp | 11,382 | 385,622 | ||||||
Buckeye Technologies Inc | 18,100 | 580,286 | ||||||
Cabot Corp | 28,600 | 1,045,902 | ||||||
HudBay Minerals Inc (Canada) | 84,162 | 828,693 | ||||||
IAMGOLD Corp (Canada) | 42,800 | 676,668 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-55
PACIFIC LIFE FUNDS
PL SMALL-CAP VALUE FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
| Value | |||||||
Innophos Holdings Inc | 16,700 | $809,783 | ||||||
Methanex Corp (Canada) | 34,300 | 978,922 | ||||||
Neenah Paper Inc | 13,200 | 378,048 | ||||||
NewMarket Corp | 4,900 | 1,207,752 | ||||||
Olin Corp | 6,400 | 139,072 | ||||||
Quaker Chemical Corp | 9,594 | 447,752 | ||||||
Rentech Nitrogen Partners LP | 9,440 | 365,894 | ||||||
Rock-Tenn Co ‘A’ | 15,500 | 1,118,790 | ||||||
Royal Gold Inc | 17,030 | 1,700,616 | ||||||
Sensient Technologies Corp | 28,500 | 1,047,660 | ||||||
Sonoco Products Co | 36,770 | 1,139,502 | ||||||
Steel Dynamics Inc | 68,700 | 771,501 | ||||||
Stepan Co | 4,058 | 390,055 | ||||||
The Scotts Miracle-Gro Co ‘A’ | 25,600 | 1,112,832 | ||||||
|
| |||||||
15,596,986 | ||||||||
|
| |||||||
Utilities - 6.3% | ||||||||
AGL Resources Inc | 18,500 | 756,835 | ||||||
Atmos Energy Corp | 28,400 | 1,016,436 | ||||||
Avista Corp | 20,100 | 517,374 | ||||||
El Paso Electric Co | 11,840 | 405,520 | ||||||
Great Plains Energy Inc | 29,000 | 645,540 | ||||||
Portland General Electric Co | 30,900 | 835,536 | ||||||
Suburban Propane Partners LP | 13,300 | 550,088 | ||||||
UGI Corp | 39,800 | 1,263,650 | ||||||
Westar Energy Inc | 28,400 | 842,344 | ||||||
|
| |||||||
6,833,323 | ||||||||
|
| |||||||
Total Common Stocks | 102,238,075 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT - 5.6% | ||||||||
Money Market Fund - 5.6% | ||||||||
BlackRock Liquidity Funds Treasury | 6,005,510 | 6,005,510 | ||||||
|
| |||||||
Total Short-Term Investment | 6,005,510 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 100.3% | 108,243,585 | |||||||
OTHER ASSETS & LIABILITIES, NET - (0.3%) | (296,014 | ) | ||||||
|
| |||||||
NET ASSETS - 100.0% | $107,947,571 | |||||||
|
| |||||||
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Financials | 17.7% | |||
Industrials | 17.2% | |||
Materials | 14.5% | |||
Energy | 12.6% | |||
Consumer Discretionary | 10.7% | |||
Utilities | 6.3% | |||
Health Care | 6.2% | |||
Consumer Staples | 5.9% | |||
Short-Term Investment | 5.6% | |||
Information Technology | 3.6% | |||
|
| |||
100.3% | ||||
Other Assets & Liabilities, Net | (0.3% | ) | ||
|
| |||
100.0% | ||||
|
|
(b) | Fair Value Measurements |
The following is a summary of the fund’s investments as categorized under the three-tier hierarchy of inputs used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant | Level 3 Significant | |||||||||||||||
Assets | Common Stocks (1) | $102,238,075 | $102,238,075 | $— | $— | |||||||||||||
Short-Term Investment | 6,005,510 | 6,005,510 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $108,243,585 | $108,243,585 | $— | $— | ||||||||||||||
|
|
|
|
|
|
|
|
(1) | For equity investments categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-56
PACIFIC LIFE FUNDS
PL REAL ESTATE FUND
Schedule of Investments
September 30, 2012 (Unaudited)
| Value | |||||||
COMMON STOCKS - 95.8% | ||||||||
Consumer Discretionary - 3.4% | ||||||||
Starwood Hotels & Resorts Worldwide Inc | 31,404 | $1,820,176 | ||||||
|
| |||||||
Financials - 92.0% | ||||||||
Acadia Realty Trust REIT | 10,483 | 260,188 | ||||||
Apartment Investment & Management Co ‘A’ REIT | 46,216 | 1,201,154 | ||||||
Ashford Hospitality Trust Inc REIT | 24,660 | 207,144 | ||||||
AvalonBay Communities Inc REIT | 11,759 | 1,599,106 | ||||||
Boston Properties Inc REIT | 21,659 | 2,395,702 | ||||||
BRE Properties Inc REIT | 13,940 | 653,647 | ||||||
Brookfield Office Properties Inc (Canada) | 75,264 | 1,246,372 | ||||||
Camden Property Trust REIT | 10,334 | 666,440 | ||||||
CommonWealth REIT | 1,217 | 17,719 | ||||||
Cousins Properties Inc REIT | 64,298 | 510,526 | ||||||
DCT Industrial Trust Inc REIT | 101,850 | 658,970 | ||||||
Digital Realty Trust Inc REIT | 7,910 | 552,513 | ||||||
Douglas Emmett Inc REIT | 180 | 4,153 | ||||||
Duke Realty Corp REIT | 28,010 | 411,747 | ||||||
Equity Lifestyle Properties Inc REIT | 14,149 | 963,830 | ||||||
Equity One Inc REIT | 281 | 5,918 | ||||||
Equity Residential REIT | 83,435 | 4,800,015 | ||||||
Federal Realty Investment Trust REIT | 7,218 | 760,055 | ||||||
Forest City Enterprises Inc ‘A’ * | 94,293 | 1,494,544 | ||||||
General Growth Properties Inc REIT | 90,963 | 1,771,959 | ||||||
HCP Inc REIT | 70,402 | 3,131,481 | ||||||
Healthcare Realty Trust Inc REIT | 47,769 | 1,101,075 | ||||||
Host Hotels & Resorts Inc REIT | 167,592 | 2,689,852 | ||||||
Hudson Pacific Properties Inc REIT | 19,090 | 353,165 | ||||||
Lexington Realty Trust REIT | 2,730 | 26,372 | ||||||
Liberty Property Trust REIT | 4,214 | 152,715 | ||||||
Mack-Cali Realty Corp REIT | 38,095 | 1,013,327 | ||||||
Omega Healthcare Investors Inc REIT | 4,600 | 104,558 | ||||||
Parkway Properties Inc REIT | 1,310 | 17,515 | ||||||
Plum Creek Timber Co Inc REIT | 2,389 | 104,734 | ||||||
ProLogis Inc REIT | 24,542 | 859,706 | ||||||
PS Business Parks Inc REIT | 3,741 | 249,974 | ||||||
Public Storage REIT | 14,317 | 1,992,497 | ||||||
Regency Centers Corp REIT | 52,026 | 2,535,227 | ||||||
Retail Opportunity Investments Corp REIT | 16,943 | 218,056 | ||||||
Senior Housing Properties Trust REIT | 50,273 | 1,094,946 | ||||||
Simon Property Group Inc REIT | 48,187 | 7,315,268 | ||||||
Sovran Self Storage Inc REIT | 1,042 | 60,280 | ||||||
STAG Industrial Inc REIT | 1,194 | 19,414 | ||||||
Starwood Property Trust Inc REIT | 15,820 | 368,131 | ||||||
The Macerich Co REIT | 14,220 | 813,811 | ||||||
UDR Inc REIT | 26,610 | 660,460 | ||||||
Ventas Inc REIT | 8,230 | 512,318 | ||||||
Vornado Realty Trust REIT | 41,031 | 3,325,563 | ||||||
Winthrop Realty Trust REIT | 15,101 | 162,789 | ||||||
|
| |||||||
49,064,936 | ||||||||
|
|
| Value | |||||||
Health Care - 0.4% | ||||||||
Assisted Living Concepts Inc ‘A’ | 25,820 | $197,007 | ||||||
|
| |||||||
Total Common Stocks | 51,082,119 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT - 4.0% | ||||||||
Money Market Fund - 4.0% | ||||||||
BlackRock Liquidity Funds Treasury | 2,111,363 | 2,111,363 | ||||||
|
| |||||||
Total Short-Term Investment | 2,111,363 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 99.8% | 53,193,482 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.2% | 102,816 | |||||||
|
| |||||||
NET ASSETS - 100.0% | $53,296,298 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified by property sector as a percentage of net assets as follows: |
Retail | 25.7% | |||
Specialized | 20.6% | |||
Residential | 19.8% | |||
Diversified | 9.0% | |||
Office | 8.2% | |||
Real Estate Operating Companies | 5.1% | |||
Hotels, Resorts & Cruise Lines | 3.4% | |||
Industrial | 2.9% | |||
Mortgage | 0.7% | |||
Health Care Facilities | 0.4% | |||
|
| |||
95.8% | ||||
Short-Term Investment | 4.0% | |||
Other Assets & Liabilities, Net | 0.2% | |||
|
| |||
100.0% | ||||
|
|
(b) | Fair Value Measurements |
The following is a summary of the fund’s investments as categorized under the three-tier hierarchy of inputs used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant | Level 3 Significant | |||||||||||||||
Assets | Common Stocks (1) | $51,082,119 | $51,082,119 | $— | $— | |||||||||||||
Short-Term Investment | 2,111,363 | 2,111,363 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $53,193,482 | $53,193,482 | $— | $— | ||||||||||||||
|
|
|
|
|
|
|
|
(1) | For equity investments categorized in a single level, refer to the schedule of investments for further industry breakout. |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-57
PACIFIC LIFE FUNDS
PL EMERGING MARKETS FUND
Schedule of Investments
September 30, 2012 (Unaudited)
| Value | |||||||
PREFERRED STOCKS - 6.4% | ||||||||
Brazil - 5.4% | ||||||||
Banco Bradesco SA ADR | 31,400 | $504,598 | ||||||
Cia Brasileira de Distribuicao Grupo Pao de Acucar ADR | 26,130 | 1,178,724 | ||||||
Cia de Bebidas das Americas ADR | 25,300 | 968,231 | ||||||
Lojas Americanas SA | 183,846 | 1,429,236 | ||||||
Petroleo Brasileiro SA ADR | 38,500 | 849,695 | ||||||
Vale SA ADR | 47,080 | 817,309 | ||||||
|
| |||||||
5,747,793 | ||||||||
|
| |||||||
Colombia - 1.0% | ||||||||
Banco Davivienda SA | 46,427 | 558,225 | ||||||
BanColombia SA ADR | 8,520 | 508,729 | ||||||
|
| |||||||
1,066,954 | ||||||||
|
| |||||||
Total Preferred Stocks | 6,814,747 | |||||||
|
| |||||||
COMMON STOCKS - 90.9% | ||||||||
Bermuda - 0.9% | ||||||||
Credicorp Ltd | 3,230 | 404,654 | ||||||
Dairy Farm International Holdings Ltd | 30,150 | 334,902 | ||||||
Jardine Strategic Holdings Ltd | 6,009 | 203,802 | ||||||
|
| |||||||
943,358 | ||||||||
|
| |||||||
Brazil - 5.5% | ||||||||
Amil Participacoes SA | 11,100 | 132,778 | ||||||
B2W Cia Global do Varejo * | 46,381 | 243,659 | ||||||
BM&FBOVESPA SA | 313,316 | 1,887,083 | ||||||
Embraer SA ADR | 31,920 | 849,710 | ||||||
Estacio Participacoes SA | 43,300 | 724,069 | ||||||
Kroton Educacional SA - Share Deposit Certificates * | 45,351 | 778,724 | ||||||
Natura Cosmeticos SA | 45,900 | 1,243,019 | ||||||
|
| |||||||
5,859,042 | ||||||||
|
| |||||||
Cayman - 11.1% | ||||||||
Baidu Inc ADR * | 28,190 | 3,293,156 | ||||||
Ctrip.com International Ltd ADR * | 54,070 | 912,702 | ||||||
Eurasia Drilling Co Ltd GDR (LI) ~ | 17,010 | 561,330 | ||||||
Home Inns & Hotels Management Inc ADR * | 17,820 | 441,936 | ||||||
NetEase Inc ADR * | 17,980 | 1,009,397 | ||||||
New Oriental Education & Technology Group ADR | 41,720 | 695,472 | ||||||
Soho China Ltd | 327,000 | 202,082 | ||||||
Tencent Holdings Ltd | 46,800 | 1,585,682 | ||||||
Tingyi Holding Corp | 540,000 | 1,619,238 | ||||||
Want Want China Holdings Ltd | 951,000 | 1,212,754 | ||||||
Youku Tudou Inc ADR * | 16,860 | 310,055 | ||||||
|
| |||||||
11,843,804 | ||||||||
|
| |||||||
Chile - 0.2% | ||||||||
Banco Santander Chile SA | 3,572,953 | 252,031 | ||||||
|
| |||||||
China - 1.2% | ||||||||
China Oilfield Services Ltd ‘H’ | 60,000 | 108,776 | ||||||
China Shenhua Energy Co Ltd ‘H’ | 165,000 | 636,984 | ||||||
Shandong Weigao Group Medical Polymer Co Ltd ‘H’ | 35,000 | 45,129 | ||||||
Shanghai Zhenhua Heavy Industries Co Ltd ‘B’ * | 500 | 153 | ||||||
Sinopharm Group Co Ltd ‘H’ | 129,000 | 413,155 | ||||||
Wumart Stores Inc ‘H’ | 80,000 | 119,424 | ||||||
|
| |||||||
1,323,621 | ||||||||
|
| |||||||
Colombia - 1.5% | ||||||||
Almacenes Exito SA | 49,454 | 821,588 | ||||||
Almacenes Exito SA GDR ~ | 45,700 | 763,825 | ||||||
|
| |||||||
1,585,413 | ||||||||
|
|
| Value | |||||||
Denmark - 2.5% | ||||||||
Carlsberg AS ‘B’ | 24,415 | $2,164,904 | ||||||
FLSmidth & Co AS | 7,958 | 456,808 | ||||||
|
| |||||||
2,621,712 | ||||||||
|
| |||||||
Egypt - 0.6% | ||||||||
Commercial International Bank SAE | 118,908 | 674,917 | ||||||
|
| |||||||
France - 0.6% | ||||||||
CFAO SA | 11,030 | 528,806 | ||||||
Technip SA | 1,430 | 159,559 | ||||||
|
| |||||||
688,365 | ||||||||
|
| |||||||
Hong Kong - 4.5% | ||||||||
AIA Group Ltd | 295,400 | 1,096,627 | ||||||
CNOOC Ltd | 483,000 | 981,275 | ||||||
Hang Lung Group Ltd | 77,000 | 486,372 | ||||||
Hang Lung Properties Ltd | 242,000 | 826,335 | ||||||
Hong Kong Exchanges & Clearing Ltd | 89,035 | 1,340,081 | ||||||
Sun Art Retail Group Ltd | 5,000 | 6,214 | ||||||
|
| |||||||
4,736,904 | ||||||||
|
| |||||||
India - 13.9% | ||||||||
Ambuja Cements Ltd | 49,109 | 187,752 | ||||||
Asian Paints Ltd | 7,729 | 575,263 | ||||||
Cipla Ltd | 52,060 | 374,891 | ||||||
Colgate-Palmolive India Ltd | 29,499 | 674,677 | ||||||
HDFC Bank Ltd ADR | 42,510 | 1,597,526 | ||||||
Hindustan Unilever Ltd | 110,503 | 1,142,271 | ||||||
Housing Development Finance Corp Ltd | 148,982 | 2,184,187 | ||||||
ICICI Bank Ltd ADR | 30,340 | 1,217,848 | ||||||
Infosys Ltd | 70,102 | 3,352,785 | ||||||
Marico Ltd | 125,195 | 474,438 | ||||||
Sun Pharmaceutical Industries Ltd | 22,972 | 302,626 | ||||||
Sun TV Network Ltd | 50,159 | 331,906 | ||||||
Tata Consultancy Services Ltd | 44,211 | 1,084,574 | ||||||
Ultratech Cement Ltd | 1,693 | 63,085 | ||||||
Zee Entertainment Enterprises Ltd | 322,726 | 1,192,638 | ||||||
|
| |||||||
14,756,467 | ||||||||
|
| |||||||
Indonesia - 1.6% | ||||||||
P.T. Astra International Tbk | 1,329,000 | 1,026,143 | ||||||
P.T. Unilever Indonesia Tbk | 236,500 | 640,367 | ||||||
|
| |||||||
1,666,510 | ||||||||
|
| |||||||
Italy - 1.3% | ||||||||
Prada SPA | 150,800 | 1,120,066 | ||||||
Saipem SPA | 3,282 | 158,117 | ||||||
Salvatore Ferragamo Italia SPA | 5,446 | 113,633 | ||||||
|
| |||||||
1,391,816 | ||||||||
|
| |||||||
Luxembourg - 1.2% | ||||||||
Tenaris SA ADR | 30,440 | 1,241,039 | ||||||
|
| |||||||
Malaysia - 0.4% | ||||||||
Genting Bhd | 141,000 | 401,342 | ||||||
|
| |||||||
Mexico - 8.6% | ||||||||
America Movil SAB de CV ‘L’ ADR | 146,590 | 3,729,250 | ||||||
Fomento Economico Mexicano SAB de CV | 175,412 | 1,615,288 | ||||||
Fomento Economico Mexicano SAB de CV ADR | 17,470 | 1,606,891 | ||||||
Grupo Financiero Inbursa SAB de CV ‘O’ | 210,456 | 592,532 | ||||||
Grupo Televisa SAB ADR | 25,900 | 608,909 | ||||||
Wal-Mart de Mexico SAB de CV ‘V’ | 349,529 | 984,359 | ||||||
|
| |||||||
9,137,229 | ||||||||
|
| |||||||
Netherlands - 1.3% | ||||||||
Yandex NV ‘A’ * | 59,370 | 1,431,411 | ||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-58
PACIFIC LIFE FUNDS
PL EMERGING MARKETS FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
| Value | |||||||
Nigeria - 1.1% | ||||||||
Guaranty Trust Bank PLC | 1,876,683 | $228,616 | ||||||
Nigerian Breweries PLC | 766,438 | 667,952 | ||||||
Zenith Bank PLC | 2,483,550 | 257,518 | ||||||
|
| |||||||
1,154,086 | ||||||||
|
| |||||||
Philippines - 3.0% | ||||||||
Jollibee Foods Corp | 222,960 | 539,693 | ||||||
SM Investments Corp | 50,450 | 879,602 | ||||||
SM Prime Holdings Inc | 5,204,070 | 1,766,603 | ||||||
|
| |||||||
3,185,898 | ||||||||
|
| |||||||
Russia - 4.9% | ||||||||
Magnit OJSC (RTS) | 19,139 | 2,555,282 | ||||||
Magnit OJSC GDR (LI) ~ | 17,280 | 586,138 | ||||||
NovaTek OAO GDR (LI) ~ | 13,500 | 1,596,686 | ||||||
NovaTek OAO GDR (OTC) ~ r | 3,700 | 437,610 | ||||||
|
| |||||||
5,175,716 | ||||||||
|
| |||||||
South Africa - 3.4% | ||||||||
Anglo American Platinum Ltd | 11,896 | 612,560 | ||||||
Impala Platinum Holdings Ltd | 56,719 | 927,599 | ||||||
MTN Group Ltd | 82,184 | 1,568,209 | ||||||
Standard Bank Group Ltd | 40,204 | 502,725 | ||||||
|
| |||||||
3,611,093 | ||||||||
|
| |||||||
South Korea - 4.4% | ||||||||
E-Mart Co Ltd | 6,229 | 1,358,645 | ||||||
MegaStudy Co Ltd | 1,770 | 117,637 | ||||||
NHN Corp | 10,111 | 2,636,067 | ||||||
Shinsegae Co Ltd | 2,843 | 531,931 | ||||||
|
| |||||||
4,644,280 | ||||||||
|
| |||||||
Taiwan - 2.9% | ||||||||
Epistar Corp | 241,000 | 511,481 | ||||||
HTC Corp | 53,210 | 514,404 | ||||||
Synnex Technology International Corp | 286,118 | 646,527 | ||||||
Taiwan Semiconductor Manufacturing Co Ltd | 475,995 | 1,450,419 | ||||||
|
| |||||||
3,122,831 | ||||||||
|
| |||||||
Thailand - 0.6% | ||||||||
Siam Commercial Bank PCL | 125,000 | 692,414 | ||||||
|
| |||||||
Turkey - 4.6% | ||||||||
Akbank TAS | 157,518 | 623,300 | ||||||
Anadolu Efes Biracilik Ve Malt Sanayii AS | 56,258 | 836,248 | ||||||
BIM Birlesik Magazalar AS | 16,025 | 669,142 | ||||||
Enka Insaat ve Sanayi AS | 297,837 | 746,238 | ||||||
Haci Omer Sabanci Holding AS | 307,448 | 1,349,619 | ||||||
Turkiye Garanti Bankasi AS | 159,392 | 666,218 | ||||||
|
| |||||||
4,890,765 | ||||||||
|
| |||||||
United Arab Emirates - 0.7% | ||||||||
DP World Ltd | 8,639 | 97,189 | ||||||
DP World Ltd (LI) | 54,944 | 642,982 | ||||||
|
| |||||||
740,171 | ||||||||
|
| |||||||
United Kingdom - 8.2% | ||||||||
Anglo American PLC | 48,605 | 1,436,315 | ||||||
BG Group PLC | 60,950 | 1,235,974 | ||||||
Burberry Group PLC | 10,270 | 166,864 | ||||||
Cairn Energy PLC * l | — | 2 | ||||||
Genting Singapore PLC | 596,000 | 662,973 | ||||||
Mail.ru Group Ltd GDR (LI) ~ | 4,300 | 146,011 | ||||||
Rio Tinto PLC | 6,330 | 295,601 | ||||||
SABMiller PLC | 34,930 | 1,540,069 | ||||||
Tullow Oil PLC | 91,720 | 2,040,594 | ||||||
Unilever PLC | 32,174 | 1,186,937 | ||||||
|
| |||||||
8,711,340 | ||||||||
|
|
| Value | |||||||
United States - 0.2% | ||||||||
MercadoLibre Inc | 1,980 | $163,449 | ||||||
|
| |||||||
Total Common Stocks | 96,647,024 | |||||||
|
| |||||||
EQUITY-LINKED STRUCTURED SECURITIES - 0.1% |
| |||||||
Vietnam - 0.1% | ||||||||
UBS AG (for Vietnam Dairy Products) | 18,000 | 100,838 | ||||||
|
| |||||||
Total Equity-Linked Structured Securities | 100,838 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT - 2.5% | ||||||||
Money Market Fund - 2.5% | ||||||||
BlackRock Liquidity Funds Treasury | 2,716,728 | 2,716,728 | ||||||
|
| |||||||
Total Short-Term Investment | 2,716,728 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 99.9% | 106,279,337 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.1% | 73,029 | |||||||
|
| |||||||
NET ASSETS - 100.0% | $106,352,366 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Consumer Staples | 25.5% | |||
Financials | 19.2% | |||
Information Technology | 17.1% | |||
Consumer Discretionary | 11.8% | |||
Energy | 9.4% | |||
Telecommunication Services | 5.0% | |||
Materials | 4.6% | |||
Industrials | 3.6% | |||
Short-Term Investment | 2.5% | |||
Health Care | 1.2% | |||
|
| |||
99.9% | ||||
Other Assets & Liabilities, Net | 0.1% | |||
|
| |||
100.0% | ||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-59
PACIFIC LIFE FUNDS
PL EMERGING MARKETS FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
(b) | As of September 30, 2012, the fund was diversified by country of incorporation as a percentage of net assets as follows: |
India | 13.9% | |||
Cayman | 11.1% | |||
Brazil | 10.9% | |||
Mexico | 8.6% | |||
United Kingdom | 8.2% | |||
Russia | 4.9% | |||
Turkey | 4.6% | |||
Hong Kong | 4.5% | |||
South Korea | 4.4% | |||
South Africa | 3.4% | |||
Philippines | 3.0% | |||
Taiwan | 2.9% | |||
United States (includes Short-Term Investment) | 2.7% | |||
Colombia | 2.5% | |||
Denmark | 2.5% | |||
Indonesia | 1.6% | |||
Netherlands | 1.3% | |||
Italy | 1.3% | |||
China | 1.2% | |||
Luxembourg | 1.2% | |||
Nigeria | 1.1% | |||
Others (each less than 1.0%) | 4.1% | |||
|
| |||
99.9% | ||||
Other Assets & Liabilities, Net | 0.1% | |||
|
| |||
100.0% | ||||
|
|
(c) | As of September 30, 2012, 0.5% of the fund’s net assets were reported illiquid by the portfolio manager under the Trust’s policy. |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-60
PACIFIC LIFE FUNDS
PL EMERGING MARKETS FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
(d) | Fair Value Measurements |
The following is a summary of the fund’s investments as categorized under the three-tier hierarchy of inputs used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant | Level 3 Significant | |||||||||||||||
Assets | Preferred Stocks (1) | $6,814,747 | $6,814,747 | $— | $— | |||||||||||||
Common Stocks | ||||||||||||||||||
Bermuda | 943,358 | 404,654 | 538,704 | — | ||||||||||||||
Brazil | 5,859,042 | 5,859,042 | — | — | ||||||||||||||
Cayman | 11,843,804 | 6,662,718 | 5,181,086 | — | ||||||||||||||
Chile | 252,031 | 252,031 | — | — | ||||||||||||||
China | 1,323,621 | — | 1,323,621 | — | ||||||||||||||
Colombia | 1,585,413 | 821,588 | 763,825 | — | ||||||||||||||
Denmark | 2,621,712 | — | 2,621,712 | — | ||||||||||||||
Egypt | 674,917 | — | 674,917 | — | ||||||||||||||
France | 688,365 | — | 688,365 | — | ||||||||||||||
Hong Kong | 4,736,904 | — | 4,736,904 | — | ||||||||||||||
India | 14,756,467 | 2,815,374 | 11,941,093 | — | ||||||||||||||
Indonesia | 1,666,510 | — | 1,666,510 | — | ||||||||||||||
Italy | 1,391,816 | — | 1,391,816 | — | ||||||||||||||
Luxembourg | 1,241,039 | 1,241,039 | — | — | ||||||||||||||
Malaysia | 401,342 | — | 401,342 | — | ||||||||||||||
Mexico | 9,137,229 | 9,137,229 | — | — | ||||||||||||||
Netherlands | 1,431,411 | 1,431,411 | — | — | ||||||||||||||
Nigeria | 1,154,086 | 1,154,086 | — | — | ||||||||||||||
Philippines | 3,185,898 | — | 3,185,898 | — | ||||||||||||||
Russia | 5,175,716 | — | 5,175,716 | — | ||||||||||||||
South Africa | 3,611,093 | — | 3,611,093 | — | ||||||||||||||
South Korea | 4,644,280 | — | 4,644,280 | — | ||||||||||||||
Taiwan | 3,122,831 | — | 3,122,831 | — | ||||||||||||||
Thailand | 692,414 | — | 692,414 | — | ||||||||||||||
Turkey | 4,890,765 | — | 4,890,765 | — | ||||||||||||||
United Arab Emirates | 740,171 | 740,171 | — | — | ||||||||||||||
United Kingdom | 8,711,340 | — | 8,711,340 | — | ||||||||||||||
United States | 163,449 | 163,449 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
96,647,024 | 30,682,792 | 65,964,232 | — | |||||||||||||||
Equity-Linked Structured Securities | 100,838 | — | 100,838 | — | ||||||||||||||
Short-Term Investment | 2,716,728 | 2,716,728 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $106,279,337 | $40,214,267 | $66,065,070 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
During the six-month period ended September 30, 2012, an investment with a value of $146,011 was transferred from level 1 to level 2 due to valuation adjustments made to exchange-traded prices, and an investment with a value of $778,724 was transferred from level 2 to level 1 due to the removal of valuation adjustments made to exchange-traded prices.
(1) | For equity investments categorized in a simple level, refer to the schedule of investments for further geographical region breakout. |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-61
PACIFIC LIFE FUNDS
PL INTERNATIONAL LARGE-CAP FUND
Schedule of Investments
September 30, 2012 (Unaudited)
| Value | |||||||
PREFERRED STOCKS - 0.8% | ||||||||
Brazil - 0.8% | ||||||||
Itau Unibanco Holding SA ADR | 112,100 | $1,712,888 | ||||||
|
| |||||||
Total Preferred Stocks | 1,712,888 | |||||||
|
| |||||||
COMMON STOCKS - 97.9% | ||||||||
Australia - 2.0% | ||||||||
QBE Insurance Group Ltd | 237,872 | 3,184,329 | ||||||
Westpac Banking Corp | 46,600 | 1,196,907 | ||||||
|
| |||||||
4,381,236 | ||||||||
|
| |||||||
Bermuda - 1.4% | ||||||||
Li & Fung Ltd | 1,922,400 | 2,975,046 | ||||||
|
| |||||||
Brazil - 1.2% | ||||||||
BM&FBOVESPA SA | 277,637 | 1,672,190 | ||||||
Tim Participacoes SA ADR | 46,000 | 884,120 | ||||||
|
| |||||||
2,556,310 | ||||||||
|
| |||||||
Canada - 2.4% | ||||||||
Canadian National Railway Co | 60,549 | 5,342,238 | ||||||
|
| |||||||
Czech Republic - 0.8% | ||||||||
Komercni Banka AS | 8,274 | 1,651,498 | ||||||
|
| |||||||
France - 11.7% | ||||||||
Air Liquide SA | 38,385 | 4,767,849 | ||||||
Danone SA | 71,837 | 4,429,802 | ||||||
Dassault Systemes SA | 12,235 | 1,288,894 | ||||||
Legrand SA | 66,004 | 2,494,760 | ||||||
LVMH Moet Hennessy Louis Vuitton SA | 27,321 | 4,120,091 | ||||||
Pernod-Ricard SA | 40,386 | 4,538,412 | ||||||
Schneider Electric SA | 66,865 | 3,971,476 | ||||||
|
| |||||||
25,611,284 | ||||||||
|
| |||||||
Germany - 11.7% | ||||||||
Bayer AG | 81,137 | 6,981,184 | ||||||
Beiersdorf AG | 62,014 | 4,555,106 | ||||||
Deutsche Boerse AG | 13,458 | 745,309 | ||||||
Linde AG | 36,956 | 6,371,502 | ||||||
Merck KGaA | 25,226 | 3,113,462 | ||||||
SAP AG | 56,325 | 3,994,083 | ||||||
|
| |||||||
25,760,646 | ||||||||
|
| |||||||
Hong Kong - 2.5% | ||||||||
AIA Group Ltd | 658,600 | 2,444,952 | ||||||
China Unicom Ltd | 1,274,000 | 2,077,261 | ||||||
CNOOC Ltd | 416,000 | 845,156 | ||||||
|
| |||||||
5,367,369 | ||||||||
|
| |||||||
India - 2.0% | ||||||||
ICICI Bank Ltd ADR | 100,196 | 4,021,867 | ||||||
Infosys Ltd ADR | 8,542 | 414,629 | ||||||
|
| |||||||
4,436,496 | ||||||||
|
| |||||||
Israel - 0.9% | ||||||||
Check Point Software Technologies Ltd * | 38,800 | 1,868,608 | ||||||
|
| |||||||
Japan - 14.4% | ||||||||
Canon Inc | 89,550 | 2,865,850 | ||||||
Denso Corp | 127,500 | 4,001,189 | ||||||
FANUC Corp | 18,900 | 3,043,969 | ||||||
Honda Motor Co Ltd | 140,300 | 4,305,064 |
| Value | |||||||
HOYA Corp | 117,200 | $2,574,139 | ||||||
INPEX Corp | 650 | 3,850,395 | ||||||
Lawson Inc | 50,700 | 3,895,842 | ||||||
NTT DOCOMO Inc | 952 | 1,543,909 | ||||||
Shin-Etsu Chemical Co Ltd | 97,200 | 5,464,060 | ||||||
|
| |||||||
31,544,417 | ||||||||
|
| |||||||
Mexico - 0.4% | ||||||||
Grupo Financiero Santander Mexico | 65,060 | 891,322 | ||||||
|
| |||||||
Netherlands - 7.6% | ||||||||
Akzo Nobel NV | 63,517 | 3,597,874 | ||||||
Heineken NV | 97,528 | 5,824,586 | ||||||
ING Groep NV CVA * | 438,768 | 3,487,964 | ||||||
Randstad Holding NV | 111,789 | 3,725,687 | ||||||
|
| |||||||
16,636,111 | ||||||||
|
| |||||||
Singapore - 1.1% | ||||||||
DBS Group Holdings Ltd | 131,000 | 1,530,073 | ||||||
Singapore Telecommunications Ltd | 364,380 | 948,583 | ||||||
|
| |||||||
2,478,656 | ||||||||
|
| |||||||
South Africa - 0.3% | ||||||||
MTN Group Ltd | 37,592 | 717,318 | ||||||
|
| |||||||
South Korea - 0.9% | ||||||||
Samsung Electronics Co Ltd | 1,628 | 1,960,001 | ||||||
|
| |||||||
Spain - 2.8% | ||||||||
Amadeus IT Holding SA ‘A’ | 133,537 | 3,117,709 | ||||||
Banco Santander SA * | 278,208 | 2,084,234 | ||||||
Red Electrica Corp SA | 20,554 | 976,211 | ||||||
|
| |||||||
6,178,154 | ||||||||
|
| |||||||
Sweden - 1.0% | ||||||||
Hennes & Mauritz AB ‘B’ | 65,801 | 2,291,506 | ||||||
|
| |||||||
Switzerland - 9.8% | ||||||||
Givaudan SA | 482 | 458,015 | ||||||
Julius Baer Group Ltd | 90,470 | 3,154,826 | ||||||
Kuehne + Nagel International AG | 5,780 | 654,028 | ||||||
Nestle SA | 119,612 | 7,545,261 | ||||||
Roche Holding AG | 19,148 | 3,576,951 | ||||||
Sonova Holding AG | 16,137 | 1,632,800 | ||||||
Swiss Re AG | 28,060 | 1,805,599 | ||||||
UBS AG (XVTX) | 222,585 | 2,716,548 | ||||||
|
| |||||||
21,544,028 | ||||||||
|
| |||||||
Taiwan - 2.4% | ||||||||
Hon Hai Precision Industry Co Ltd | 667,080 | 2,065,981 | ||||||
Taiwan Semiconductor Manufacturing Co Ltd ADR | 201,006 | 3,179,915 | ||||||
|
| |||||||
5,245,896 | ||||||||
|
| |||||||
United Kingdom - 20.6% | ||||||||
Barclays PLC | 424,362 | 1,483,362 | ||||||
BG Group PLC | 103,470 | 2,098,215 | ||||||
Compass Group PLC | 418,152 | 4,759,876 | ||||||
Delphi Automotive PLC * | 54,340 | 1,684,540 | ||||||
Diageo PLC | 155,071 | 4,404,413 | ||||||
Hays PLC | 711,705 | 907,335 | ||||||
HSBC Holdings PLC (LI) | 782,531 | 7,316,466 | ||||||
Reckitt Benckiser Group PLC | 65,023 | 3,746,379 | ||||||
Rio Tinto PLC | 75,982 | 3,548,245 | ||||||
Royal Dutch Shell PLC ‘A’ (LI) | 118,177 | 4,092,855 | ||||||
Smiths Group PLC | 135,786 | 2,279,241 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-62
PACIFIC LIFE FUNDS
PL INTERNATIONAL LARGE-CAP FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
| Value | |||||||
Standard Chartered PLC | 213,464 | $4,843,975 | ||||||
WPP PLC | 299,762 | 4,101,066 | ||||||
|
| |||||||
45,265,968 | ||||||||
|
| |||||||
Total Common Stocks | 214,704,108 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT - 0.8% | ||||||||
Money Market Fund - 0.8% | ||||||||
Blackrock Liquidity Funds Treasury | 1,903,960 | 1,903,960 | ||||||
|
| |||||||
Total Short-Term Investment | 1,903,960 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 99.5% | 218,320,956 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.5% | 1,008,948 | |||||||
|
| |||||||
NET ASSETS - 100.0% | $219,329,904 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Financials | 21.0% | |||
Consumer Staples | 17.8% | |||
Consumer Discretionary | 12.9% | |||
Materials | 11.0% | |||
Information Technology | 10.6% | |||
Industrials | 10.2% | |||
Health Care | 7.0% | |||
Energy | 5.0% | |||
Telecommunication Services | 2.8% | |||
Short-Term Investment | 0.8% | |||
Utilities | 0.4% | |||
|
| |||
99.5% | ||||
Other Assets & Liabilities, Net | 0.5% | |||
|
| |||
100.0% | ||||
|
|
(b) | As of September 30, 2012, the fund was diversified by country of incorporation region as a percentage of net assets as follows: |
United Kingdom | 20.6% | |||
Japan | 14.4% | |||
Germany | 11.7% | |||
France | 11.7% | |||
Switzerland | 9.8% | |||
Netherlands | 7.6% | |||
Spain | 2.8% | |||
Hong Kong | 2.5% | |||
Canada | 2.4% | |||
Taiwan | 2.4% | |||
India | 2.0% | |||
Australia | 2.0% | |||
Brazil | 2.0% | |||
Bermuda | 1.4% | |||
Singapore | 1.1% | |||
Sweden | 1.0% | |||
Others (each less than 1.0%) | 4.1% | |||
|
| |||
99.5% | ||||
Other Assets & Liabilities, Net | 0.5% | |||
|
| |||
100.0% | ||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-63
PACIFIC LIFE FUNDS
PL INTERNATIONAL LARGE-CAP FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
(c) | Fair Value Measurements |
The following is a summary of the fund’s investments as categorized under the three-tier hierarchy of inputs used in valuing the fund’s assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Preferred Stocks (1) | $1,712,888 | $1,712,888 | $— | $— | |||||||||||||
Common Stocks | ||||||||||||||||||
Australia | 4,381,236 | — | 4,381,236 | — | ||||||||||||||
Bermuda | 2,975,046 | — | 2,975,046 | — | ||||||||||||||
Brazil | 2,556,310 | 2,556,310 | — | — | ||||||||||||||
Canada | 5,342,238 | 5,342,238 | — | — | ||||||||||||||
Czech Republic | 1,651,498 | — | 1,651,498 | — | ||||||||||||||
France | 25,611,284 | — | 25,611,284 | — | ||||||||||||||
Germany | 25,760,646 | — | 25,760,646 | — | ||||||||||||||
Hong Kong | 5,367,369 | — | 5,367,369 | — | ||||||||||||||
India | 4,436,496 | 4,436,496 | — | — | ||||||||||||||
Israel | 1,868,608 | 1,868,608 | — | — | ||||||||||||||
Japan | 31,544,417 | — | 31,544,417 | — | ||||||||||||||
Mexico | 891,322 | 891,322 | — | — | ||||||||||||||
Netherlands | 16,636,111 | — | 16,636,111 | — | ||||||||||||||
Singapore | 2,478,656 | — | 2,478,656 | — | ||||||||||||||
South Africa | 717,318 | — | 717,318 | — | ||||||||||||||
South Korea | 1,960,001 | — | 1,960,001 | — | ||||||||||||||
Spain | 6,178,154 | — | 6,178,154 | — | ||||||||||||||
Sweden | 2,291,506 | — | 2,291,506 | — | ||||||||||||||
Switzerland | 21,544,028 | — | 21,544,028 | — | ||||||||||||||
Taiwan | 5,245,896 | 3,179,915 | 2,065,981 | — | ||||||||||||||
United Kingdom | 45,265,968 | 1,684,540 | 43,581,428 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
214,704,108 | 19,959,429 | 194,744,679 | — | |||||||||||||||
Short-Term Investment | 1,903,960 | 1,903,960 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $218,320,956 | $23,576,277 | $194,744,679 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
(1) | For equity investments categorized in a simple level, refer to the schedule of investments for further geographical region breakout. |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-64
PACIFIC LIFE FUNDS
PL INTERNATIONAL VALUE FUND
Schedule of Investments
September 30, 2012 (Unaudited)
| Value | |||||||
PREFERRED STOCKS - 1.5% | ||||||||
Germany - 1.5% | ||||||||
Volkswagen AG | 12,178 | $2,224,447 | ||||||
|
| |||||||
Total Preferred Stocks | 2,224,447 | |||||||
|
| |||||||
COMMON STOCKS - 95.3% | ||||||||
Australia - 2.2% | ||||||||
Australia & New Zealand Banking Group Ltd | 129,441 | 3,310,975 | ||||||
|
| |||||||
Belgium - 1.2% | ||||||||
Solvay SA | 15,042 | 1,746,645 | ||||||
|
| |||||||
Canada - 0.7% | ||||||||
First Quantum Minerals Ltd | 52,701 | 1,123,066 | ||||||
|
| |||||||
China - 1.7% | ||||||||
China Construction Bank Corp ‘H’ | 2,193,000 | 1,515,415 | ||||||
China Shenhua Energy Co Ltd ‘H’ | 282,500 | 1,090,594 | ||||||
|
| |||||||
2,606,009 | ||||||||
|
| |||||||
Finland - 0.9% | ||||||||
UPM-Kymmene OYJ | 120,210 | 1,363,750 | ||||||
|
| |||||||
France - 10.9% | ||||||||
AXA SA | 74,610 | 1,114,891 | ||||||
BNP Paribas SA | 58,192 | 2,781,312 | ||||||
Cie de St-Gobain | 37,201 | 1,311,332 | ||||||
GDF Suez | 45,786 | 1,026,079 | ||||||
Renault SA | 28,023 | 1,320,801 | ||||||
Sanofi | 58,217 | 4,973,433 | ||||||
Schneider Electric SA | 22,062 | 1,310,382 | ||||||
Sodexo | 26,961 | 2,032,241 | ||||||
Suez Environnement Co | 63,078 | 715,947 | ||||||
|
| |||||||
16,586,418 | ||||||||
|
| |||||||
Germany - 8.7% | ||||||||
Allianz SE | 27,847 | 3,315,771 | ||||||
BASF SE | 24,214 | 2,046,022 | ||||||
Bayer AG | 45,449 | 3,910,520 | ||||||
Deutsche Boerse AG | 29,953 | 1,658,808 | ||||||
E.ON AG | 96,466 | 2,292,518 | ||||||
|
| |||||||
13,223,639 | ||||||||
|
| |||||||
Hong Kong - 3.9% | ||||||||
China Overseas Land & Investment Ltd | 306,000 | 775,327 | ||||||
CNOOC Ltd | 866,000 | 1,759,387 | ||||||
Hutchison Whampoa Ltd | 253,000 | 2,443,486 | ||||||
Sino Land Co Ltd | 468,000 | 870,238 | ||||||
|
| |||||||
5,848,438 | ||||||||
|
| |||||||
Israel - 1.0% | ||||||||
Teva Pharmaceutical Industries Ltd ADR | 37,293 | 1,544,303 | ||||||
|
| |||||||
Italy - 3.4% | ||||||||
ENI SPA | 192,968 | 4,233,921 | ||||||
Intesa Sanpaolo SPA | 650,044 | 994,149 | ||||||
|
| |||||||
5,228,070 | ||||||||
|
| |||||||
Japan - 20.1% | ||||||||
Asahi Group Holdings Ltd | 43,800 | 1,079,407 | ||||||
Bridgestone Corp | 42,500 | 984,911 |
| Value | |||||||
Canon Inc | 49,300 | $1,577,737 | ||||||
East Japan Railway Co | 11,700 | 774,852 | ||||||
Fujitsu Ltd | 248,000 | 930,342 | ||||||
Hitachi Ltd | 474,000 | 2,633,824 | ||||||
Honda Motor Co Ltd | 96,600 | 2,964,142 | ||||||
Japan Airlines Co Ltd * | 27,700 | 1,295,554 | ||||||
Japan Tobacco Inc | 66,400 | 1,990,046 | ||||||
JX Holdings Inc | 172,660 | 943,937 | ||||||
Kirin Holdings Co Ltd | 109,000 | 1,457,490 | ||||||
Marubeni Corp | 144,000 | 918,209 | ||||||
Mitsubishi Electric Corp | 95,000 | 699,598 | ||||||
Mitsui & Co Ltd | 78,600 | 1,105,026 | ||||||
Nippon Telegraph & Telephone Corp | 41,600 | 1,973,988 | ||||||
Nissan Motor Co Ltd | 97,900 | 833,516 | ||||||
ORIX Corp | 13,770 | 1,380,762 | ||||||
Sumitomo Corp | 160,900 | 2,169,599 | ||||||
Sumitomo Mitsui Financial Group Inc | 121,300 | 3,773,506 | ||||||
Yamato Holdings Co Ltd | 67,900 | 1,074,961 | ||||||
|
| |||||||
30,561,407 | ||||||||
|
| |||||||
Luxembourg - 0.7% | ||||||||
ArcelorMittal | 68,420 | 986,428 | ||||||
|
| |||||||
Netherlands - 2.5% | ||||||||
European Aeronautic Defence & Space Co NV | 35,120 | 1,116,517 | ||||||
ING Groep NV CVA * | 174,229 | 1,385,025 | ||||||
Unilever NV CVA | 38,353 | 1,358,629 | ||||||
|
| |||||||
3,860,171 | ||||||||
|
| |||||||
Norway - 1.2% | ||||||||
Telenor ASA | 94,164 | 1,837,953 | ||||||
|
| |||||||
South Africa - 0.3% | ||||||||
African Bank Investments Ltd | 114,100 | 453,422 | ||||||
|
| |||||||
South Korea - 1.7% | ||||||||
Samsung Electronics Co Ltd | 2,163 | 2,604,105 | ||||||
|
| |||||||
Spain - 2.3% | ||||||||
Banco Bilbao Vizcaya Argentaria SA | 136,514 | 1,079,359 | ||||||
Iberdrola SA | 281,969 | 1,282,796 | ||||||
Repsol YPF SA | 57,048 | 1,110,364 | ||||||
|
| |||||||
3,472,519 | ||||||||
|
| |||||||
Sweden - 3.4% | ||||||||
Nordea Bank AB | 233,137 | 2,314,513 | ||||||
Swedbank AB ‘A’ | 48,950 | 920,775 | ||||||
Telefonaktiebolaget LM Ericsson ‘B’ | 212,279 | 1,936,180 | ||||||
|
| |||||||
5,171,468 | ||||||||
|
| |||||||
Switzerland - 3.5% | ||||||||
Credit Suisse Group AG | 80,602 | 1,714,197 | ||||||
Roche Holding AG | 8,003 | 1,495,004 | ||||||
Swiss Re AG | 27,849 | 1,792,022 | ||||||
Zurich Insurance Group AG | 1,270 | 316,251 | ||||||
|
| |||||||
5,317,474 | ||||||||
|
| |||||||
United Kingdom - 25.0% | ||||||||
Barclays PLC | 785,305 | 2,745,043 | ||||||
British American Tobacco PLC | 23,141 | 1,196,116 | ||||||
Centrica PLC | 467,919 | 2,499,818 | ||||||
Experian PLC | 68,241 | 1,144,662 | ||||||
GlaxoSmithKline PLC | 88,346 | 2,050,089 | ||||||
HSBC Holdings PLC | 594,020 | 5,553,936 | ||||||
InterContinental Hotels Group PLC | 78,008 | 2,048,055 | ||||||
Kingfisher PLC | 433,505 | 1,852,408 | ||||||
Pearson PLC | 80,051 | 1,573,002 | ||||||
Prudential PLC | 174,001 | 2,281,836 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-65
PACIFIC LIFE FUNDS
PL INTERNATIONAL VALUE FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
| Value | |||||||
Rio Tinto PLC | 46,631 | $2,177,598 | ||||||
Royal Dutch Shell PLC ‘A’ | 162,220 | 5,618,207 | ||||||
SABMiller PLC | 36,060 | 1,589,891 | ||||||
Vodafone Group PLC | 1,957,170 | 5,570,245 | ||||||
|
| |||||||
37,900,906 | ||||||||
|
| |||||||
Total Common Stocks | 144,747,166 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT - 1.6% | ||||||||
Money Market Fund - 1.6% | ||||||||
Blackrock Liquidity Funds Treasury | 2,435,716 | 2,435,716 | ||||||
|
| |||||||
Total Short-Term Investment | 2,435,716 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 98.4% | 149,407,329 | |||||||
OTHER ASSETS & LIABILITIES, NET - 1.6% | 2,452,430 | |||||||
|
| |||||||
NET ASSETS - 100.0% | $151,859,759 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2012, the fund was diversified as a percentage of net assets as follows: |
Financials | 27.7% | |||
Consumer Discretionary | 10.4% | |||
Industrials | 10.1% | |||
Energy | 9.7% | |||
Health Care | 9.2% | |||
Information Technology | 6.4% | |||
Materials | 6.2% | |||
Telecommunication Services | 6.2% | |||
Consumer Staples | 5.7% | |||
Utilities | 5.2% | |||
Short-Term Investment | 1.6% | |||
|
| |||
98.4% | ||||
Other Assets & Liabilities, Net | 1.6% | |||
|
| |||
100.0% | ||||
|
|
(b) | As of September 30, 2012, the fund was diversified by country of incorporation as a percentage of net assets as follows: |
United Kingdom | 25.0% | |||
Japan | 20.1% | |||
France | 10.9% | |||
Germany | 10.2% | |||
Hong Kong | 3.9% | |||
Switzerland | 3.5% | |||
Italy | 3.4% | |||
Sweden | 3.4% | |||
Netherlands | 2.5% | |||
Spain | 2.3% | |||
Australia | 2.2% | |||
China | 1.7% | |||
South Korea | 1.7% | |||
United States (includes Short-Term Investment) | 1.6% | |||
Norway | 1.2% | |||
Belgium | 1.2% | |||
Israel | 1.0% | |||
Others (each less than 1.0%) | 2.6% | |||
|
| |||
98.4% | ||||
Other Assets & Liabilities, Net | 1.6% | |||
|
| |||
100.0% | ||||
|
|
(c) | As of September 30, 2012, $151,000 in cash was segregated with the broker(s)/custodian for open futures contracts. |
(d) | Open futures contracts outstanding as of September 30, 2012 were as follows: |
Long Futures Outstanding | Number of Contracts | Notional Amount | Unrealized Appreciation (Depreciation) | |||||||||
Dow Jones EURO STOXX 50 (12/12) | 30 | EUR 761,700 | ($32,434 | ) | ||||||||
FTSE 100 Index (12/12) | 9 | GBP 524,925 | (17,386 | ) | ||||||||
TOPIX Index (12/12) | 6 | JPY 43,500,000 | 7,627 | |||||||||
|
| |||||||||||
Total Future Contracts | ($42,193 | ) | ||||||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-66
PACIFIC LIFE FUNDS
PL INTERNATIONAL VALUE FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
(e) | Forward foreign currency contracts outstanding as of September 30, 2012 were as follows: |
Currency Purchased | Currency Sold | Expiration | Counterparty | Unrealized Appreciation (Depreciation) | ||||||||||||||||
AUD | 528,836 | EUR | 447,601 | 11/12 | WBC | ($28,800 | ) | |||||||||||||
AUD | 8,956,951 | USD | 9,258,097 | 11/12 | SSB | (87,048 | ) | |||||||||||||
CHF | 539,202 | GBP | 354,321 | 11/12 | WBC | 1,647 | ||||||||||||||
CHF | 1,801,227 | USD | 1,916,593 | 11/12 | RBS | 65,895 | ||||||||||||||
CHF | 254,577 | USD | 270,883 | 11/12 | TDB | 4,502 | ||||||||||||||
CHF | 7,756,736 | USD | 8,253,545 | 11/12 | WBC | 306,387 | ||||||||||||||
EUR | 1,301,107 | USD | 1,672,645 | 11/12 | RBC | (13,742 | ) | |||||||||||||
GBP | 384,119 | EUR | 488,030 | 11/12 | UBS | (7,188 | ) | |||||||||||||
GBP | 152,961 | USD | 246,972 | 11/12 | BRC | 10,037 | ||||||||||||||
GBP | 307,380 | USD | 496,299 | 11/12 | UBS | 16,909 | ||||||||||||||
HKD | 12,704,374 | USD | 1,638,434 | 11/12 | SSB | (601 | ) | |||||||||||||
JPY | 34,885,636 | EUR | 354,266 | 11/12 | UBS | (8,264 | ) | |||||||||||||
JPY | 47,500,000 | USD | 608,857 | 11/12 | MSC | 4,129 | ||||||||||||||
JPY | 37,369,516 | USD | 479,004 | 11/12 | TDB | 330 | ||||||||||||||
NOK | 449,100 | USD | 78,278 | 11/12 | SSB | 4,367 | ||||||||||||||
NZD | 407,430 | USD | 336,817 | 11/12 | HSB | 9,115 | ||||||||||||||
NZD | 372,500 | USD | 307,941 | 11/12 | UBS | 10,511 | ||||||||||||||
SGD | 3,408,646 | USD | 2,777,436 | 11/12 | SSB | 38,049 | ||||||||||||||
USD | 883,201 | CAD | 869,009 | 11/12 | CSF | (17,317 | ) | |||||||||||||
USD | 990,327 | CHF | 930,716 | 11/12 | CIT | 12,693 | ||||||||||||||
USD | 1,144,078 | CHF | 1,075,212 | 11/12 | CSF | 5,980 | ||||||||||||||
USD | 354,167 | CHF | 332,848 | 11/12 | MSC | 87 | ||||||||||||||
USD | 461,376 | CHF | 433,604 | 11/12 | SSB | 6,621 | ||||||||||||||
USD | 504,076 | EUR | 392,108 | 11/12 | BRC | (11,584 | ) | |||||||||||||
USD | 7,512,851 | EUR | 5,844,048 | 11/12 | CSF | (339,790 | ) | |||||||||||||
USD | 434,267 | EUR | 337,805 | 11/12 | SSB | (17,764 | ) | |||||||||||||
USD | 430,854 | EUR | 335,150 | 11/12 | WBC | (2,322 | ) | |||||||||||||
USD | 346,496 | GBP | 214,601 | 11/12 | BRC | (5,523 | ) | |||||||||||||
USD | 6,728,612 | GBP | 4,167,331 | 11/12 | CSF | (192,162 | ) | |||||||||||||
USD | 451,381 | HKD | 3,500,000 | 11/12 | MSC | (45 | ) | |||||||||||||
USD | 696,076 | HKD | 5,397,354 | 11/12 | TDB | (97 | ) | |||||||||||||
USD | 5,580,924 | JPY | 435,396,088 | 11/12 | WBC | (9,167 | ) | |||||||||||||
USD | 199,748 | NOK | 1,146,000 | 11/12 | WBC | (1,693 | ) | |||||||||||||
USD | 446,930 | NZD | 540,628 | 11/12 | WBC | (11,746 | ) | |||||||||||||
USD | 442,879 | SEK | 2,912,545 | 11/12 | WBC | (17,761 | ) | |||||||||||||
|
| |||||||||||||||||||
Total Forward Foreign Currency Contracts |
| ($275,355 | ) | |||||||||||||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-67
PACIFIC LIFE FUNDS
PL INTERNATIONAL VALUE FUND
Schedule of Investments (Continued)
September 30, 2012 (Unaudited)
(f) | Fair Value Measurements |
The following is a summary of the fund's investments as categorized under the three-tier hierarchy of inputs used in valuing the fund's assets and liabilities (See Note 3D in Notes to Financial Statements) as of September 30, 2012:
Total Value at September 30, 2012 | Level 1 Quoted Price | Level 2 Significant Observable Input | Level 3 Significant | |||||||||||||||
Assets | Preferred Stocks (1) | $2,224,447 | $— | $2,224,447 | $— | |||||||||||||
Common Stocks | ||||||||||||||||||
Australia | 3,310,975 | — | 3,310,975 | — | ||||||||||||||
Belgium | 1,746,645 | — | 1,746,645 | — | ||||||||||||||
Canada | 1,123,066 | 1,123,066 | — | — | ||||||||||||||
China | 2,606,009 | — | 2,606,009 | — | ||||||||||||||
Finland | 1,363,750 | — | 1,363,750 | — | ||||||||||||||
France | 16,586,418 | — | 16,586,418 | — | ||||||||||||||
Germany | 13,223,639 | — | 13,223,639 | — | ||||||||||||||
Hong Kong | 5,848,438 | — | 5,848,438 | — | ||||||||||||||
Israel | 1,544,303 | 1,544,303 | — | — | ||||||||||||||
Italy | 5,228,070 | — | 5,228,070 | — | ||||||||||||||
Japan | 30,561,407 | 1,295,554 | 29,265,853 | — | ||||||||||||||
Luxembourg | 986,428 | — | 986,428 | — | ||||||||||||||
Netherlands | 3,860,171 | — | 3,860,171 | — | ||||||||||||||
Norway | 1,837,953 | — | 1,837,953 | — | ||||||||||||||
South Africa | 453,422 | — | 453,422 | — | ||||||||||||||
South Korea | 2,604,105 | — | 2,604,105 | — | ||||||||||||||
Spain | 3,472,519 | — | 3,472,519 | — | ||||||||||||||
Sweden | 5,171,468 | — | 5,171,468 | — | ||||||||||||||
Switzerland | 5,317,474 | 316,251 | 5,001,223 | — | ||||||||||||||
United Kingdom | 37,900,906 | — | 37,900,906 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
144,747,166 | 4,279,174 | 140,467,992 | — | |||||||||||||||
Short-Term Investment | 2,435,716 | 2,435,716 | — | — | ||||||||||||||
Derivatives: | ||||||||||||||||||
Equity Contracts | ||||||||||||||||||
Futures | 7,627 | 7,627 | — | — | ||||||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Forward Foreign Currency Contracts | 497,259 | — | 497,259 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Assets Derivatives | 504,886 | 7,627 | 497,259 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Assets | 149,912,215 | 6,722,517 | 143,189,698 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Liabilities | Derivatives: | |||||||||||||||||
Equity Contracts | ||||||||||||||||||
Futures | (49,820 | ) | (49,820 | ) | — | — | ||||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Forward Foreign Currency Contracts | (772,614 | ) | — | (772,614 | ) | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities | (822,434 | ) | (49,820 | ) | (772,614 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $149,089,781 | $6,672,697 | $142,417,084 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
(1) For equity investments categorized in a single level, refer to the schedule of investments for further geographical region breakout.
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-69 |
A-68
PACIFIC LIFE FUNDS
Schedule of Investments (Continued)
Explanation of Symbols and Terms
September 30, 2012 (Unaudited)
Explanation of Symbols: | ||
* | Non-income producing investments. | |
" | 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. | |
^ | Investments with their principal amount adjusted for inflation. | |
§ | Variable rate investments. The rate shown is based on the latest available information as of September 30, 2012. For senior loan notes, the rate shown may represent a weighted average interest rate. | |
W | Investments were in default as of September 30, 2012. | |
± | The security is a perpetual bond and has no definite maturity date. | |
µ | 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 under 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. | |
¯ | Restricted Securities. These securities are not registered and may not be sold to the public. There are legal and/or contractual restrictions on resale. The Trust does not have the right to demand that such securities be registered. The values of these securities are determined by valuations provided by pricing services, brokers, dealers, market makers, or in good faith under the procedures established by the Trust’s Board of Trustees (the “Board”). | |
‡ | Investments were fully or partially segregated with the broker(s)/custodian as collateral for securities sold short, futures contracts, written option contracts, swap contracts and/or reverse repurchase agreements, if any, as of September 30, 2012. | |
+ | The values of these investments were determined by the Trustee Valuation Committee or determined by a valuation committee established under the Trust Procedures, and then subsequently approved by the Board. Each determination was made in good faith in accordance with the procedures established by the Board and the provisions of the Investment Company Act of 1940 (See Note 3C in Notes to Financial Statements). | |
r | Illiquid Investments. Investments were reported as illiquid by the portfolio manager or advisor pursuant to the Trust’s policy and procedures (See Note 4 in Notes to Financial Statements). | |
l | Total shares owned by the fund as of September 30, 2012 were less than one share. | |
Counterparty Abbreviations: | ||
BOA | Bank of America | |
BNY | Bank of New York Mellon | |
BRC | Barclays | |
CIB | Canadian Imperial Bank of Commerce | |
CIT | Citigroup | |
CME | Chicago Mercantile Exchange | |
CSF | Credit Suisse | |
DUB | Deutsche Bank | |
GSC | Goldman Sachs | |
HSB | HSBC | |
ING | ING Bank | |
JPM | JPMorgan Chase | |
MSC | Morgan Stanley | |
RBC | Royal Bank of Canada | |
RBS | Royal Bank of Scotland | |
SCB | Standard Chartered Bank | |
SSB | State Street Bank | |
TDB | Toronto Dominion Bank | |
UBS | UBS | |
WBC | Westpac Banking Corp |
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 | |
HKD | Hong Kong Dollar | |
INR | Indian Rupee | |
JPY | Japanese Yen | |
KRW | Korean Won | |
MXN | Mexican Peso | |
MYR | Malaysian Ringgit | |
NOK | Norwegian Krone | |
NZD | New Zealand Dollar | |
PHP | Philippine Peso | |
PLN | Polish Zloty | |
RUB | Russian Ruble | |
SEK | Swedish Krona | |
SGD | Singapore Dollar | |
TRY | Turkish Lira | |
USD | United States Dollar | |
Other Abbreviations: | ||
ADR | American Depositary Receipt | |
CDO | Collateralized Debt Obligation | |
CLO | Collateralized Loan Obligation | |
CPI | Consumer Price Index | |
CVA | Certificaten Van Aandelen (Dutch Certificate) | |
FDR | Fiduciary Depositary Receipt | |
GDR | Global Depositary Receipt | |
LIBOR | London Interbank Offered Rate | |
NA | Not Applicable | |
‘NY’ | New York Shares | |
OTC | Over the Counter | |
REIT | Real Estate Investment Trust |
Note:
The countries listed in the Schedules of Investments are based on country of incorporation.
See Notes to Financial Statements |
A-69
PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2012 (Unaudited)
PL Floating Rate Loan Fund | PL Inflation Managed Fund | PL Managed Bond Fund | PL Short Duration Bond Fund | PL Emerging Markets Debt Fund | PL Comstock Fund | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Investments, at cost | $99,082,201 | $188,253,646 | $744,294,045 | $223,329,981 | $82,211,170 | $226,805,176 | ||||||||||||||||||
Investments, at value | $100,169,363 | $197,129,325 | $762,460,053 | $225,835,375 | $85,687,174 | $265,591,484 | ||||||||||||||||||
Repurchase agreements, at value | — | — | 100,000 | — | — | — | ||||||||||||||||||
Cash (1) | — | — | 19,000 | — | — | — | ||||||||||||||||||
Foreign currency held, at value (2) | — | 2,831 | 97,654 | — | 46,211 | — | ||||||||||||||||||
Receivables: | ||||||||||||||||||||||||
Dividends and interest | 735,158 | 625,285 | 2,597,554 | 1,107,854 | 1,418,148 | 386,755 | ||||||||||||||||||
Fund shares sold | 216,270 | 429,552 | 955,882 | 395,245 | 27,014 | — | ||||||||||||||||||
Securities sold | 3,321,260 | 49,606 | 121,410,892 | 2,740,361 | 1,470,660 | — | ||||||||||||||||||
Swap agreements | — | 500,000 | — | — | — | — | ||||||||||||||||||
Variation margin | — | — | 497,823 | — | — | — | ||||||||||||||||||
Securities sold short | — | — | 11,562,031 | — | — | — | ||||||||||||||||||
Due from adviser | 11,194 | 22,343 | 38,186 | 13,287 | 28,836 | 12,739 | ||||||||||||||||||
Forward foreign currency contracts appreciation | — | 95,220 | 320,897 | — | 209,312 | 89,288 | ||||||||||||||||||
Prepaid expenses and other assets | 687 | 1,687 | 2,785 | 931 | — | 1,310 | ||||||||||||||||||
Swap contracts, at value | — | 229,455 | 1,375,009 | — | 1,647 | — | ||||||||||||||||||
Total Assets | 104,453,932 | 199,085,304 | 901,437,766 | 230,093,053 | 88,889,002 | 266,081,576 | ||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||
Fund shares redeemed | — | — | 6,604 | — | — | 21,512 | ||||||||||||||||||
Securities purchased | 4,782,324 | 132,251 | 317,571,962 | 3,160,800 | 2,943,115 | — | ||||||||||||||||||
Swap agreements | — | 503,815 | — | — | — | — | ||||||||||||||||||
Reverse repurchase agreements | — | 13,974,750 | — | — | — | — | ||||||||||||||||||
Due to custodian in foreign currency (2) | — | — | — | — | — | 516,807 | ||||||||||||||||||
Securities sold short, at value (proceeds $11,562,031) | — | — | 11,718,125 | — | — | — | ||||||||||||||||||
Variation margin | — | 50,558 | — | — | — | — | ||||||||||||||||||
Due to brokers (3) | — | 6,440,529 | 2,391,257 | — | — | — | ||||||||||||||||||
Accrued advisory fees | 52,270 | 56,965 | 183,235 | 73,473 | 54,411 | �� | 159,980 | |||||||||||||||||
Accrued administration fees | 12,062 | 21,362 | 68,713 | 27,552 | 10,397 | 32,649 | ||||||||||||||||||
Accrued support service expenses | 6,610 | 18,709 | 30,805 | 9,104 | 2,536 | 12,221 | ||||||||||||||||||
Accrued custodian fees and expenses | 8,679 | 12,765 | 23,338 | 5,251 | 59,602 | 5,917 | ||||||||||||||||||
Accrued transfer agency out-of-pocket expenses | 4,152 | 11,771 | 19,319 | 5,453 | 2,685 | 7,246 | ||||||||||||||||||
Accrued legal, audit and tax service fees | 9,784 | 27,213 | 44,733 | 13,371 | 3,366 | 18,038 | ||||||||||||||||||
Accrued trustees’ fees and expenses and deferred compensation | 195 | 1,630 | 7,389 | 538 | 50 | 2,336 | ||||||||||||||||||
Accrued offering expenses | — | — | — | — | 11,571 | — | ||||||||||||||||||
Accrued other | 10,420 | 22,728 | 38,047 | 13,781 | 8,548 | 10,524 | ||||||||||||||||||
Forward foreign currency contracts depreciation | — | 271,805 | 797,995 | — | 110,014 | — | ||||||||||||||||||
Outstanding options written, at value (premiums received $421,722 and $378,360) | — | 459,530 | 226,087 | — | — | — | ||||||||||||||||||
Swap contracts, at value | — | 1,251 | 799,892 | — | — | — | ||||||||||||||||||
Total Liabilities | 4,886,496 | 22,007,632 | 333,927,501 | 3,309,323 | 3,206,295 | 787,230 | ||||||||||||||||||
NET ASSETS | $99,567,436 | $177,077,672 | $567,510,265 | $226,783,730 | $85,682,707 | $265,294,346 | ||||||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||||||||||
Paid-in capital | $94,786,146 | $150,885,077 | $531,796,050 | $222,746,785 | $80,945,022 | $249,479,626 | ||||||||||||||||||
Undistributed net investment income | 3,497,888 | 4,185,094 | 11,123,022 | 1,575,084 | 909,634 | 2,339,581 | ||||||||||||||||||
Undistributed/accumulated net realized gain (loss) | 196,240 | 13,359,197 | 6,611,022 | (43,533 | ) | 253,913 | (25,402,852 | ) | ||||||||||||||||
Net unrealized appreciation on investments and assets and liabilities in foreign currencies | 1,087,162 | 8,648,304 | 17,980,171 | 2,505,394 | 3,574,138 | 38,877,991 | ||||||||||||||||||
NET ASSETS | $99,567,436 | $177,077,672 | $567,510,265 | $226,783,730 | $85,682,707 | $265,294,346 | ||||||||||||||||||
Class P Shares: | ||||||||||||||||||||||||
Shares of beneficial interest outstanding | 9,584,740 | 15,467,894 | 49,626,857 | 22,197,094 | 8,086,805 | 20,761,698 | ||||||||||||||||||
Net Asset Value Per Share | $10.39 | $11.45 | $11.44 | $10.22 | $10.60 | $12.78 |
(1) | Includes cash collateral segregated for open Futures contracts and swap contracts in the PL Managed Bond Fund of $13,000 and $6,000, respectively. |
(2) | The cost of foreign currency for the PL Inflation Managed, PL Managed Bond, PL Emerging Markets Debt and PL Comstock Funds was $2,728, $97,965, $46,511 and ($519,290), respectively. |
(3) | The PL Inflation Managed and PL Managed Bond Funds received cash collateral to mitigate risk of loss to certain counterparties, which will be repaid based on master netting arrangements between the Funds and the counterparties. The Funds invest such cash collateral in investments securities. (See Note 5 in Notes to Financial Statements). Also, includes funds borrowed of $6,150,531 and $101,257 for sale-buyback financing transactions in the PL Inflation Managed and PL Managed Bond Funds, respectively (see Note 4 in Notes to Financial Statements). |
See Notes to Financial Statements |
B-1
PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
SEPTEMBER 30, 2012 (Unaudited)
PL Growth LT Fund | PL Large-Cap Growth Fund | PL Large-Cap Value Fund | PL Main Street® Core Fund | PL Mid-Cap Equity Fund | PL Mid-Cap Growth Fund | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Investments, at cost | $30,787,264 | $102,496,721 | $263,716,760 | $170,597,242 | $117,776,193 | $54,474,635 | ||||||||||||||||||
Investments, at value | $41,084,886 | $133,423,369 | $329,589,173 | $214,397,909 | $129,928,611 | $62,298,761 | ||||||||||||||||||
Foreign currency held, at value (1) | 9,861 | — | — | — | — | 793 | ||||||||||||||||||
Receivables: | ||||||||||||||||||||||||
Dividends and interest | 27,765 | 49,395 | 677,000 | 149,951 | 182,783 | 19,922 | ||||||||||||||||||
Fund shares sold | — | — | 237,881 | — | — | 26,108 | ||||||||||||||||||
Securities sold | 185,455 | 3,684,349 | — | 1,089,850 | 761,439 | — | ||||||||||||||||||
Foreign tax reclaim | 3,172 | — | — | — | — | 9,582 | ||||||||||||||||||
Due from adviser | 10,181 | 8,217 | 16,055 | 12,589 | 11,246 | 5,665 | ||||||||||||||||||
Forward foreign currency contracts appreciation | 8,736 | — | — | — | — | — | ||||||||||||||||||
Prepaid expenses and other assets | 640 | 739 | 1,667 | 1,184 | 1,055 | 426 | ||||||||||||||||||
Total Assets | 41,330,696 | 137,166,069 | 330,521,776 | 215,651,483 | 130,885,134 | 62,361,257 | ||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||
Fund shares redeemed | 4,340 | 8,491 | 28,305 | 20,002 | 14,152 | 9,435 | ||||||||||||||||||
Securities purchased | 406,630 | 1,564,766 | — | 1,082,816 | 2,210,304 | 252,273 | ||||||||||||||||||
Accrued advisory fees | 18,609 | 80,598 | 175,574 | 79,442 | 69,513 | 35,614 | ||||||||||||||||||
Accrued administration fees | 5,075 | 16,676 | 40,517 | 26,481 | 16,042 | 7,632 | ||||||||||||||||||
Accrued support service expenses | 6,484 | 7,607 | 15,838 | 11,598 | 9,852 | 4,240 | ||||||||||||||||||
Accrued custodian fees and expenses | 21,958 | 5,602 | 6,333 | 6,568 | 6,877 | — | ||||||||||||||||||
Accrued transfer agency out-of-pocket expenses | 3,852 | 4,538 | 9,569 | 7,090 | 5,910 | 2,479 | ||||||||||||||||||
Accrued legal, audit and tax service fees | 9,462 | 11,094 | 23,368 | 17,070 | 14,561 | 6,196 | ||||||||||||||||||
Accrued trustees’ fees and expenses and deferred compensation | 2,442 | 5,989 | 4,055 | 460 | 308 | 2,523 | ||||||||||||||||||
Accrued other | 7,970 | 6,463 | 13,117 | 9,759 | 8,580 | 3,407 | ||||||||||||||||||
Forward foreign currency contracts depreciation | 38,888 | — | — | — | — | — | ||||||||||||||||||
Outstanding options written, at value (premiums received $4,871) | 4,040 | — | — | — | — | — | ||||||||||||||||||
Total Liabilities | 529,750 | 1,711,824 | 316,676 | 1,261,286 | 2,356,099 | 323,799 | ||||||||||||||||||
NET ASSETS | $40,800,946 | $135,454,245 | $330,205,100 | $214,390,197 | $128,529,035 | $62,037,458 | ||||||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||||||||||
Paid-in capital | $39,772,873 | $98,239,961 | $274,030,874 | $189,979,201 | $124,163,641 | $53,080,075 | ||||||||||||||||||
Undistributed/accumulated net investment income (loss) | 752,467 | (239,455 | ) | 3,707,232 | 1,727,284 | 660,428 | 160,007 | |||||||||||||||||
Undistributed/accumulated net realized gain (loss) | (9,992,624 | ) | 6,527,091 | (13,405,419 | ) | (21,117,009 | ) | (8,447,452 | ) | 973,610 | ||||||||||||||
Net unrealized appreciation on investments and assets and liabilities in foreign currencies | 10,268,230 | 30,926,648 | 65,872,413 | 43,800,721 | 12,152,418 | 7,823,766 | ||||||||||||||||||
NET ASSETS | $40,800,946 | $135,454,245 | $330,205,100 | $214,390,197 | $128,529,035 | $62,037,458 | ||||||||||||||||||
Class P Shares: | ||||||||||||||||||||||||
Shares of beneficial interest outstanding | 3,100,173 | 13,165,719 | 25,832,859 | 18,686,182 | 13,109,273 | 7,684,866 | ||||||||||||||||||
Net Asset Value Per Share | $13.16 | $10.29 | $12.78 | $11.47 | $9.80 | $8.07 |
(1) | The cost of foreign currency for the PL Growth LT and PL Mid-Cap Growth Funds was $9,916, and $782, respectively. |
See Notes to Financial Statements |
B-2
PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
SEPTEMBER 30, 2012 (Unaudited)
PL Small-Cap Growth Fund | PL Small-Cap Value Fund | PL Real Estate Fund | PL Emerging Markets Fund | PL International Large-Cap Fund | PL International Value Fund | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Investments, at cost | $36,224,010 | $92,421,044 | $34,176,104 | $86,178,502 | $184,998,505 | $141,176,843 | ||||||||||||||||||
Investments, at value | $43,324,304 | $108,243,585 | $53,193,482 | $106,279,337 | $218,320,956 | $149,407,329 | ||||||||||||||||||
Cash (1) | — | — | — | — | — | 151,000 | ||||||||||||||||||
Foreign currency held, at value (2) | — | — | — | 21,210 | 61,488 | 1,444,504 | ||||||||||||||||||
Receivables: | ||||||||||||||||||||||||
Dividends and interest | 34,528 | 179,758 | 101,317 | 90,479 | 566,691 | 542,695 | ||||||||||||||||||
Fund shares sold | — | 23,993 | 81,580 | — | 15,983 | — | ||||||||||||||||||
Securities sold | 631,386 | — | 198,143 | 304,522 | 1,407,253 | 2,872,915 | ||||||||||||||||||
Foreign tax reclaim | — | — | — | 3,746 | 236,934 | 76,588 | ||||||||||||||||||
Due from adviser | 4,723 | 7,337 | 4,475 | 32,280 | 17,192 | 13,580 | ||||||||||||||||||
Forward foreign currency contracts appreciation | — | — | — | — | — | 497,259 | ||||||||||||||||||
Prepaid expenses and other assets | 263 | 734 | 322 | 550 | 1,272 | 681 | ||||||||||||||||||
Total Assets | 43,995,204 | 108,455,407 | 53,579,319 | 106,732,124 | 220,627,769 | 155,006,551 | ||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||
Fund shares redeemed | 7,925 | 15,096 | 7,548 | 11,322 | 18,870 | 15,100 | ||||||||||||||||||
Securities purchased | 73,221 | 386,163 | 210,530 | 130,332 | 1,021,318 | 2,161,313 | ||||||||||||||||||
Variation margin | — | — | — | — | — | 33,338 | ||||||||||||||||||
Accrued advisory fees | 21,945 | 66,591 | 40,047 | 68,818 | 154,113 | 82,145 | ||||||||||||||||||
Accrued administration fees | 5,486 | 13,318 | 6,675 | 12,903 | 27,196 | 18,956 | ||||||||||||||||||
Accrued support service expenses | 2,245 | 4,988 | 3,243 | 4,989 | 11,721 | 6,609 | ||||||||||||||||||
Accrued custodian fees and expenses | 6,778 | 5,547 | 4,847 | 78,168 | 28,216 | 30,997 | ||||||||||||||||||
Accrued transfer agency out-of-pocket expenses | 1,372 | 2,937 | 2,094 | 2,937 | 6,717 | 3,816 | ||||||||||||||||||
Accrued legal, audit and tax service fees | 3,365 | 7,488 | 4,785 | 7,387 | 17,273 | 9,674 | ||||||||||||||||||
Accrued trustees’ fees and expenses and deferred compensation | 1,550 | 85 | 93 | 214 | 1,799 | 2,801 | ||||||||||||||||||
Accrued foreign capital gains tax | — | — | — | 57,010 | — | — | ||||||||||||||||||
Accrued other | 3,432 | 5,623 | 3,159 | 5,678 | 10,642 | 9,429 | ||||||||||||||||||
Forward foreign currency contracts depreciation | — | — | — | — | — | 772,614 | ||||||||||||||||||
Total Liabilities | 127,319 | 507,836 | 283,021 | 379,758 | 1,297,865 | 3,146,792 | ||||||||||||||||||
NET ASSETS | $43,867,885 | $107,947,571 | $53,296,298 | $106,352,366 | $219,329,904 | $151,859,759 | ||||||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||||||||||
Paid-in capital | $41,657,213 | $95,190,055 | $43,667,510 | $89,114,279 | $200,186,292 | $200,216,103 | ||||||||||||||||||
Undistributed/accumulated net investment income (loss) | (23,079 | ) | 1,120,363 | 432,874 | 384,740 | 3,931,588 | 3,303,944 | |||||||||||||||||
Accumulated net realized loss | (4,866,543 | ) | (4,185,334 | ) | (9,821,464 | ) | (3,181,341 | ) | (18,106,788 | ) | (59,567,554 | ) | ||||||||||||
Net unrealized appreciation on investments and assets and liabilities in foreign currencies | 7,100,294 | 15,822,487 | 19,017,378 | 20,034,688 | 33,318,812 | 7,907,266 | ||||||||||||||||||
NET ASSETS | $43,867,885 | $107,947,571 | $53,296,298 | $106,352,366 | $219,329,904 | $151,859,759 | ||||||||||||||||||
Class P Shares: | ||||||||||||||||||||||||
Shares of beneficial interest outstanding | 3,722,375 | 10,138,644 | 4,138,918 | 7,796,844 | 14,628,043 | 18,072,886 | ||||||||||||||||||
Net Asset Value Per Share | $11.78 | $10.65 | $12.88 | $13.64 | $14.99 | $8.40 |
(1) | Includes margin deposits of $151,000 held as collateral for futures contracts in the PL International Value Fund. |
(2) | The cost of foreign currency for the PL Emerging Markets, PL International Large-Cap and PL International Value Funds was $30,754, $62,079 and $1,439,512, respectively. |
See Notes to Financial Statements |
B-3
PACIFIC LIFE FUNDS
FOR SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2012 (Unaudited)
PL Floating Rate Loan Fund | PL Inflation Managed Fund | PL Managed Bond Fund | PL Short Duration Bond Fund | PL Emerging Markets Debt Fund (1) | PL Comstock Fund | |||||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||||||
Dividends, net of foreign taxes withheld | $431 | $42 | $171,874 | $644 | $174 | $2,680,827 | ||||||||||||||||||
Interest, net of foreign taxes withheld | 2,669,954 | 4,019,889 | 6,199,729 | 1,611,948 | 1,099,506 | — | ||||||||||||||||||
Other | 51,665 | — | — | — | — | — | ||||||||||||||||||
Total Investment Income | 2,722,050 | 4,019,931 | 6,371,603 | 1,612,592 | 1,099,680 | 2,680,827 | ||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||
Advisory fees | 396,094 | 480,012 | 1,053,301 | 378,924 | 159,557 | 860,881 | ||||||||||||||||||
Administration fees | 79,219 | 180,005 | 394,988 | 142,096 | 30,489 | 172,176 | ||||||||||||||||||
Support services expenses | 9,108 | 25,671 | 42,521 | 12,739 | 2,536 | 17,177 | ||||||||||||||||||
Custodian fees and expenses | 12,126 | 15,156 | 26,995 | 7,946 | 59,602 | 9,929 | ||||||||||||||||||
Shareholder report expenses | 1,940 | 5,474 | 9,004 | 2,679 | 658 | 3,609 | ||||||||||||||||||
Transfer agency out-of-pocket expenses | 9,217 | 26,071 | 43,450 | 12,901 | 2,685 | 17,376 | ||||||||||||||||||
Registration fees | 1,233 | 3,446 | 5,675 | 1,694 | 414 | 2,285 | ||||||||||||||||||
Legal, audit and tax service fees | 10,298 | 29,025 | 47,909 | 14,268 | 3,407 | 19,205 | ||||||||||||||||||
Trustees’ fees and expenses | 1,952 | 5,516 | 9,129 | 2,731 | 562 | 3,673 | ||||||||||||||||||
Offering expenses | — | — | — | — | 12,877 | — | ||||||||||||||||||
Interest expense | — | 24,665 | 469 | — | — | — | ||||||||||||||||||
Other | 20,441 | 28,431 | 55,501 | 27,058 | 7,612 | 8,729 | ||||||||||||||||||
Total Expenses | 541,628 | 823,472 | 1,688,942 | 603,036 | 280,399 | 1,115,040 | ||||||||||||||||||
Advisory Fee Waiver (2) | (52,812 | ) | — | — | — | — | (17,218 | ) | ||||||||||||||||
Adviser Reimbursement (3) | (66,315 | ) | (138,790 | ) | (240,184 | ) | (82,016 | ) | (90,353 | ) | (81,982 | ) | ||||||||||||
Net Expenses | 422,501 | 684,682 | 1,448,758 | 521,020 | 190,046 | 1,015,840 | ||||||||||||||||||
NET INVESTMENT INCOME | 2,299,549 | 3,335,249 | 4,922,845 | 1,091,572 | 909,634 | 1,664,987 | ||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||||||
Net Realized Gain (Loss) On: | ||||||||||||||||||||||||
Investment security transactions | 215,917 | 11,500,230 | 9,044,938 | 90,080 | 181,885 | 2,252,207 | ||||||||||||||||||
Closed short positions | — | — | (69,420 | ) | — | — | — | |||||||||||||||||
Futures contracts and swap transactions | — | 347,984 | 1,230,900 | 30,230 | 6,973 | — | ||||||||||||||||||
Written option transactions | — | (2,455 | ) | 1,314,444 | — | — | — | |||||||||||||||||
Foreign currency transactions | — | (5,802 | ) | (1,069,584 | ) | (2,831 | ) | 65,055 | (520,786 | ) | ||||||||||||||
Net Realized Gain | 215,917 | 11,839,957 | 10,451,278 | 117,479 | 253,913 | 1,731,421 | ||||||||||||||||||
Change In Net Unrealized Appreciation (Depreciation) On: | ||||||||||||||||||||||||
Investment securities | 212,777 | 133,231 | 11,362,611 | 1,716,567 | 3,476,004 | 5,131,108 | ||||||||||||||||||
Short positions | — | — | (156,094 | ) | — | — | — | |||||||||||||||||
Futures contracts and swaps | — | (189,222 | ) | 270,614 | — | 1,647 | — | |||||||||||||||||
Written options | — | (53,609 | ) | (775,032 | ) | — | — | — | ||||||||||||||||
Foreign currencies | — | (16,300 | ) | 840,146 | 2,831 | 96,487 | 92,451 | |||||||||||||||||
Change in Net Unrealized Appreciation (Depreciation) | 212,777 | (125,900 | ) | 11,542,245 | 1,719,398 | 3,574,138 | 5,223,559 | |||||||||||||||||
NET GAIN | 428,694 | 11,714,057 | 21,993,523 | 1,836,877 | 3,828,051 | 6,954,980 | ||||||||||||||||||
NET INCREASE IN NET ASSETS | $2,728,243 | $15,049,306 | $26,916,368 | $2,928,449 | $4,737,685 | $8,619,967 | ||||||||||||||||||
Foreign taxes withheld on dividends and interest | $— | $6,151 | $51,286 | $— | $— | $40,042 |
(1) | Operations commenced on June 29, 2012 |
(2) | See Note 6 in Notes to Financial Statements. |
(3) | See Note 7B in Notes to Financial Statements. |
See Notes to Financial Statements |
B-4
PACIFIC LIFE FUNDS
STATEMENTS OF OPERATIONS (Continued)
FOR SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2012 (Unaudited)
PL Growth LT Fund | PL Large-Cap Growth Fund | PL Large-Cap Value Fund | PL Main Street® Core Fund | PL Mid-Cap Equity Fund | PL Mid-Cap Growth Fund | |||||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||||||
Dividends, net of foreign taxes withheld | $403,453 | $418,434 | $3,684,143 | $1,580,820 | $1,050,992 | $528,391 | ||||||||||||||||||
Interest, net of foreign taxes withheld | 2,324 | — | — | — | — | — | ||||||||||||||||||
Total Investment Income | 405,777 | 418,434 | 3,684,143 | 1,580,820 | 1,050,992 | 528,391 | ||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||
Advisory fees | 200,181 | 472,698 | 939,536 | 444,560 | 469,801 | 225,228 | ||||||||||||||||||
Administration fees | 54,595 | 94,539 | 216,816 | 148,187 | 108,416 | 48,263 | ||||||||||||||||||
Support services expenses | 9,088 | 10,645 | 22,115 | 16,280 | 13,796 | 5,976 | ||||||||||||||||||
Custodian fees and expenses | 25,845 | 8,247 | 11,106 | 10,509 | 12,157 | 10,344 | ||||||||||||||||||
Shareholder report expenses | 1,922 | 2,235 | 4,662 | 3,401 | 2,896 | 1,252 | ||||||||||||||||||
Transfer agency out-of-pocket expenses | 9,214 | 10,794 | 22,380 | 16,326 | 13,954 | 6,054 | ||||||||||||||||||
Registration fees | 1,202 | 1,409 | 2,956 | 2,159 | 1,843 | 788 | ||||||||||||||||||
Legal, audit and tax service fees | 10,161 | 11,912 | 24,814 | 18,127 | 15,459 | 6,662 | ||||||||||||||||||
Trustees’ fees and expenses | 1,958 | 2,280 | 4,737 | 3,453 | 2,948 | 1,281 | ||||||||||||||||||
Other | 8,749 | 5,411 | 9,798 | 7,608 | 7,365 | 5,079 | ||||||||||||||||||
Total Expenses | 322,915 | 620,170 | 1,258,920 | 670,610 | 648,635 | 310,927 | ||||||||||||||||||
Advisory Fee Waiver (1) | — | (15,757 | ) | — | — | — | — | |||||||||||||||||
Adviser Reimbursement (2) | (68,140 | ) | (52,932 | ) | (102,568 | ) | (77,863 | ) | (70,418 | ) | (37,436 | ) | ||||||||||||
Net Expenses | 254,775 | 551,481 | 1,156,352 | 592,747 | 578,217 | 273,491 | ||||||||||||||||||
NET INVESTMENT INCOME (LOSS) | 151,002 | (133,047 | ) | 2,527,791 | 988,073 | 472,775 | 254,900 | |||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||||||
Net Realized Gain (Loss) On: | ||||||||||||||||||||||||
Investment security transactions | 10,775,380 | 5,927,057 | 4,314,372 | 6,830,792 | (24,050 | ) | 193,745 | |||||||||||||||||
Written option transactions | 108,157 | — | — | — | — | — | ||||||||||||||||||
Foreign currency transactions | 5,769 | — | (123 | ) | 363 | — | (10,950 | ) | ||||||||||||||||
Net Realized Gain (Loss) | 10,889,306 | 5,927,057 | 4,314,249 | 6,831,155 | (24,050 | ) | 182,795 | |||||||||||||||||
Change In Net Unrealized Appreciation (Depreciation) On: | ||||||||||||||||||||||||
Investment securities | (14,893,218 | ) | (5,448,881 | ) | 6,544,489 | (2,825,675 | ) | (9,191,682 | ) | (7,061,158 | ) | |||||||||||||
Written options | 831 | — | — | — | — | — | ||||||||||||||||||
Foreign currencies | 23,173 | — | — | 112 | — | 979 | ||||||||||||||||||
Change in Net Unrealized Appreciation (Depreciation) | (14,869,214 | ) | (5,448,881 | ) | 6,544,489 | (2,825,563 | ) | (9,191,682 | ) | (7,060,179 | ) | |||||||||||||
NET GAIN (LOSS) | (3,979,908 | ) | 478,176 | 10,858,738 | 4,005,592 | (9,215,732 | ) | (6,877,384 | ) | |||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | ($3,828,906 | ) | $345,129 | $13,386,529 | $4,993,665 | ($8,742,957 | ) | ($6,622,484 | ) | |||||||||||||||
Foreign taxes withheld on dividends and interest | $17,057 | $— | $61,622 | $810 | $— | $11,082 |
(1) | See Note 6 in Notes to Financial Statements. |
(2) | See Note 7B in Notes to Financial Statements. |
See Notes to Financial Statements |
B-5
PACIFIC LIFE FUNDS
STATEMENTS OF OPERATIONS (Continued)
FOR SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2012 (Unaudited)
PL Small-Cap Growth Fund | PL Small-Cap Value Fund | PL Real Estate Fund | PL Emerging Markets Fund | PL International Large-Cap Fund | PL International Value Fund | |||||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||||||
Dividends, net of foreign taxes withheld | $131,226 | $1,223,314 | $516,660 | $986,448 | $3,640,331 | $2,728,222 | ||||||||||||||||||
Interest, net of foreign taxes withheld | — | — | — | — | 1,162 | 4,007 | ||||||||||||||||||
Total Investment Income | 131,226 | 1,223,314 | 516,660 | 986,448 | 3,641,493 | 2,732,229 | ||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||
Advisory fees | 116,885 | 356,704 | 239,158 | 366,982 | 862,803 | 415,868 | ||||||||||||||||||
Administration fees | 29,221 | 71,341 | 39,860 | 68,809 | 152,259 | 95,970 | ||||||||||||||||||
Support services expenses | 3,132 | 7,052 | 4,420 | 7,033 | 16,658 | 9,357 | ||||||||||||||||||
Custodian fees and expenses | 11,334 | 10,347 | 7,532 | 133,417 | 46,727 | 37,652 | ||||||||||||||||||
Shareholder report expenses | 652 | 1,478 | 949 | 1,478 | 3,468 | 1,966 | ||||||||||||||||||
Transfer agency out-of-pocket expenses | 3,160 | 7,108 | 4,477 | 7,108 | 16,846 | 9,476 | ||||||||||||||||||
Registration fees | 424 | 945 | 602 | 935 | 2,194 | 1,231 | ||||||||||||||||||
Legal, audit and tax service fees | 3,523 | 7,877 | 5,025 | 7,853 | 18,509 | 10,409 | ||||||||||||||||||
Trustees’ fees and expenses | 668 | 1,507 | 949 | 1,501 | 3,548 | 2,001 | ||||||||||||||||||
Other | 6,247 | 7,709 | 3,434 | 22,482 | 13,144 | 12,304 | ||||||||||||||||||
Total Expenses | 175,246 | 472,068 | 306,406 | 617,598 | 1,136,156 | 596,234 | ||||||||||||||||||
Adviser Reimbursement (1) | (29,140 | ) | (44,023 | ) | (27,388 | ) | (181,806 | ) | (121,094 | ) | (84,396 | ) | ||||||||||||
Net Expenses | 146,106 | 428,045 | 279,018 | 435,792 | 1,015,062 | 511,838 | ||||||||||||||||||
NET INVESTMENT INCOME (LOSS) | (14,880 | ) | 795,269 | 237,642 | 550,656 | 2,626,431 | 2,220,391 | |||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||||||
Net Realized Gain (Loss) On: | ||||||||||||||||||||||||
Investment security transactions | 1,336,804 | 1,814,074 | 893,372 | (384,486 | ) | 554,509 | (3,534,897 | ) | ||||||||||||||||
Futures contract transactions | — | — | — | — | — | (23,003 | ) | |||||||||||||||||
Foreign currency transactions | — | (343 | ) | — | (45,225 | ) | (9,630 | ) | (146,337 | ) | ||||||||||||||
Net Realized Gain (Loss) | 1,336,804 | 1,813,731 | 893,372 | (429,711 | ) | 544,879 | (3,704,237 | ) | ||||||||||||||||
Change In Net Unrealized Appreciation (Depreciation) On: | ||||||||||||||||||||||||
Investment securities (2) | (1,290,771 | ) | (1,055,720 | ) | 29,665 | 1,865,275 | (3,461,155 | ) | 995,918 | |||||||||||||||
Futures contracts | — | — | — | — | — | (46,832 | ) | |||||||||||||||||
Foreign currencies | — | (16 | ) | — | (5,634 | ) | (5,873 | ) | (101,920 | ) | ||||||||||||||
Change in Net Unrealized Appreciation (Depreciation) | (1,290,771 | ) | (1,055,736 | ) | 29,665 | 1,859,641 | (3,467,028 | ) | 847,166 | |||||||||||||||
NET GAIN (LOSS) | 46,033 | 757,995 | 923,037 | 1,429,930 | (2,922,149 | ) | (2,857,071 | ) | ||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | $31,153 | $1,553,264 | $1,160,679 | $1,980,586 | ($295,718 | ) | ($636,680 | ) | ||||||||||||||||
Foreign taxes withheld on dividends and interest | $— | $6,350 | $3,142 | $96,838 | $483,424 | $333,095 |
(1) | See Note 7B in Notes to Financial Statements. |
(2) | Change in net unrealized appreciation (depreciation) on investment securities for the PL Emerging Markets Fund was net of decrease in deferred foreign capital gains tax of $2,479. |
See Notes to Financial Statements |
B-6
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
PL Floating Rate Loan Fund | PL Inflation Managed Fund | PL Managed Bond Fund | ||||||||||||||||||||||
Six-Month Period Ended September 30, 2012 (1) | Year Ended March 31, 2012 | Six-Month Period Ended September 30, 2012 (1) | Year Ended March 31, 2012 | Six-Month Period Ended September 30, 2012 (1) | Year Ended March 31, 2012 | |||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||
Net investment income | $2,299,549 | $4,130,067 | $3,335,249 | $7,173,178 | $4,922,845 | $9,784,211 | ||||||||||||||||||
Net realized gain | 215,917 | 502,188 | 11,839,957 | 15,897,068 | 10,451,278 | 4,380,097 | ||||||||||||||||||
Change in net unrealized appreciation (depreciation) | 212,777 | (922,280 | ) | (125,900 | ) | 3,518,275 | 11,542,245 | 1,966,331 | ||||||||||||||||
Net Increase in Net Assets Resulting from Operations | 2,728,243 | 3,709,975 | 15,049,306 | 26,588,521 | 26,916,368 | 16,130,639 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||
Class P | — | (3,822,618 | ) | — | (8,896,184 | ) | — | (11,687,819 | ) | |||||||||||||||
Net realized gains | ||||||||||||||||||||||||
Class P | — | — | — | (11,006,526 | ) | — | — | |||||||||||||||||
Net Decrease from Dividends and | — | (3,822,618 | ) | — | (19,902,710 | ) | — | (11,687,819 | ) | |||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||
Class P | 10,582,004 | 27,980,424 | 25,738,916 | 63,874,744 | 72,485,484 | 122,951,772 | ||||||||||||||||||
Dividends and distribution reinvestments | ||||||||||||||||||||||||
Class P | — | 3,822,618 | — | 19,902,710 | — | 11,687,819 | ||||||||||||||||||
Cost of shares repurchased | ||||||||||||||||||||||||
Class P | (25,830,847 | ) | (5,667,963 | ) | (151,666,678 | ) | (31,863,538 | ) | (18,106,360 | ) | (31,850,108 | ) | ||||||||||||
Net Increase (Decrease) in Net Assets from | (15,248,843 | ) | 26,135,079 | (125,927,762 | ) | 51,913,916 | 54,379,124 | 102,789,483 | ||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | (12,520,600 | ) | 26,022,436 | (110,878,456 | ) | 58,599,727 | 81,295,492 | 107,232,303 | ||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||
Beginning of Year or Period | 112,088,036 | 86,065,600 | 287,956,128 | 229,356,401 | 486,214,773 | 378,982,470 | ||||||||||||||||||
End of Year or Period | $99,567,436 | $112,088,036 | $177,077,672 | $287,956,128 | $567,510,265 | $486,214,773 | ||||||||||||||||||
Undistributed Net Investment Income | $3,497,888 | $1,198,339 | $4,185,094 | $849,845 | $11,123,022 | $6,200,177 |
(1) | Unaudited. |
See Notes to Financial Statements |
B-7
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
PL Short Duration Bond Fund | PL Emerging Markets Debt Fund (1) | PL Comstock Fund | ||||||||||||||||||
Six-Month Period Ended September 30, 2012 (2) | Year Ended March 31, 2012 | Period Ended September 30, 2012 (2) | Six-Month Period Ended September 30, 2012 (2) | Year Ended March 31, 2012 | ||||||||||||||||
OPERATIONS | ||||||||||||||||||||
Net investment income | $1,091,572 | $1,527,338 | $909,634 | $1,664,987 | $2,652,992 | |||||||||||||||
Net realized gain | 117,479 | 365,029 | 253,913 | 1,731,421 | 8,095,045 | |||||||||||||||
Change in net unrealized appreciation | 1,719,398 | 335,227 | 3,574,138 | 5,223,559 | 220,561 | |||||||||||||||
Net Increase in Net Assets Resulting from Operations | 2,928,449 | 2,227,594 | 4,737,685 | 8,619,967 | 10,968,598 | |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||
Net investment income | ||||||||||||||||||||
Class P | — | (1,583,339 | ) | — | — | (2,469,410 | ) | |||||||||||||
Net realized gains | ||||||||||||||||||||
Class P | — | (194,538 | ) | — | — | — | ||||||||||||||
Net Decrease from Dividends and | — | (1,777,877 | ) | — | — | (2,469,410 | ) | |||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||
Class P | 70,042,889 | 40,795,923 | 81,423,659 | 52,180,512 | 39,955,205 | |||||||||||||||
Dividends and distribution reinvestments | ||||||||||||||||||||
Class P | — | 1,777,877 | — | — | 2,469,410 | |||||||||||||||
Cost of shares repurchased | ||||||||||||||||||||
Class P | (1,555,456 | ) | (8,788,892 | ) | (478,637 | ) | (2,835,767 | ) | (10,059,434 | ) | ||||||||||
Net Increase in Net Assets from | 68,487,433 | 33,784,908 | 80,945,022 | 49,344,745 | 32,365,181 | |||||||||||||||
NET INCREASE IN NET ASSETS | 71,415,882 | 34,234,625 | 85,682,707 | 57,964,712 | 40,864,369 | |||||||||||||||
NET ASSETS | ||||||||||||||||||||
Beginning of Year or Period | 155,367,848 | 121,133,223 | — | 207,329,634 | 166,465,265 | |||||||||||||||
End of Year or Period | $226,783,730 | $155,367,848 | $85,682,707 | $265,294,346 | $207,329,634 | |||||||||||||||
Undistributed Net Investment Income | $1,575,084 | $483,512 | $909,634 | $2,339,581 | $674,594 |
(1) | Operations commenced on June 29, 2012. |
(2) | Unaudited. |
See Notes to Financial Statements |
B-8
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
PL Growth LT Fund | PL Large-Cap Growth Fund | PL Large-Cap Value Fund | ||||||||||||||||||||||
Six-Month Period Ended September 30, 2012 (1) | Year Ended March 31, 2012 | Six-Month Period Ended September 30, 2012 (1) | Year Ended March 31, 2012 | Six-Month Period Ended September 30, 2012 (1) | Year Ended March 31, 2012 | |||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||
Net investment income (loss) | $151,002 | $568,645 | ($133,047 | ) | ($285,215 | ) | $2,527,791 | $4,585,584 | ||||||||||||||||
Net realized gain (loss) | 10,889,306 | (779,013 | ) | 5,927,057 | 2,701,430 | 4,314,249 | 953,473 | |||||||||||||||||
Change in net unrealized appreciation (depreciation) | (14,869,214 | ) | 4,289,690 | (5,448,881 | ) | 13,258,222 | 6,544,489 | 14,291,995 | ||||||||||||||||
Net Increase (Decrease) in Net Assets | (3,828,906 | ) | 4,079,322 | 345,129 | 15,674,437 | 13,386,529 | 19,831,052 | |||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||
Class P | — | (536,165 | ) | — | — | — | (4,290,204 | ) | ||||||||||||||||
Net realized gains | ||||||||||||||||||||||||
Class P | — | — | — | (1,890,797 | ) | — | — | |||||||||||||||||
Net Decrease from Dividends and | — | (536,165 | ) | — | (1,890,797 | ) | — | (4,290,204 | ) | |||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||
Class P | 1,673,773 | 17,297,129 | 8,263,585 | 19,512,148 | 60,305,799 | 41,530,441 | ||||||||||||||||||
Dividends and distribution reinvestments | ||||||||||||||||||||||||
Class P | — | 536,165 | — | 1,890,797 | — | 4,290,204 | ||||||||||||||||||
Cost of shares repurchased | ||||||||||||||||||||||||
Class P | (65,383,579 | ) | (28,612,620 | ) | (2,376,676 | ) | (5,065,264 | ) | (6,404,293 | ) | (26,880,017 | ) | ||||||||||||
Net Increase (Decrease) in Net Assets from | (63,709,806 | ) | (10,779,326 | ) | 5,886,909 | 16,337,681 | 53,901,506 | 18,940,628 | ||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | (67,538,712 | ) | (7,236,169 | ) | 6,232,038 | 30,121,321 | 67,288,035 | 34,481,476 | ||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||
Beginning of Year or Period | 108,339,658 | 115,575,827 | 129,222,207 | 99,100,886 | 262,917,065 | 228,435,589 | ||||||||||||||||||
End of Year or Period | $40,800,946 | $108,339,658 | $135,454,245 | $129,222,207 | $330,205,100 | $262,917,065 | ||||||||||||||||||
Undistributed/Accumulated Net Investment Income (Loss) | $752,467 | $601,465 | ($239,455 | ) | ($106,408 | ) | $3,707,232 | $1,179,441 |
(1) | Unaudited. |
See Notes to Financial Statements |
B-9
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
PL Main Street® Core Fund | PL Mid-Cap Equity Fund | PL Mid-Cap Growth Fund | ||||||||||||||||||||||
Six-Month Period Ended September 30, 2012 (1) | Year Ended March 31, 2012 | Six-Month Period Ended September 30, 2012 (1) | Year Ended March 31, 2012 | Six-Month Period Ended September 30, 2012 (1) | Year Ended March 31, 2012 | |||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||
Net investment income (loss) | $988,073 | $1,681,456 | $472,775 | $732,213 | $254,900 | ($131,025 | ) | |||||||||||||||||
Net realized gain (loss) | 6,831,155 | 2,717,308 | (24,050 | ) | 6,873,001 | 182,795 | 5,871,520 | |||||||||||||||||
Change in net unrealized appreciation (depreciation) | (2,825,563 | ) | 16,697,945 | (9,191,682 | ) | (5,959,364 | ) | (7,060,179 | ) | (5,166,639 | ) | |||||||||||||
Net Increase (Decrease) in Net Assets | 4,993,665 | 21,096,709 | (8,742,957 | ) | 1,645,850 | (6,622,484 | ) | 573,856 | ||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||
Class P | — | (1,459,944 | ) | — | (669,458 | ) | — | (316,392 | ) | |||||||||||||||
Net realized gains | ||||||||||||||||||||||||
Class P | — | — | — | — | — | (7,220,657 | ) | |||||||||||||||||
Net Decrease from Dividends and | — | (1,459,944 | ) | — | (669,458 | ) | — | (7,537,049 | ) | |||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||
Class P | 19,934,775 | 23,559,879 | 10,957,188 | 35,444,468 | 11,127,603 | 11,042,280 | ||||||||||||||||||
Dividends and distribution reinvestments | ||||||||||||||||||||||||
Class P | — | 1,459,944 | — | 669,458 | — | 7,537,049 | ||||||||||||||||||
Cost of shares repurchased | ||||||||||||||||||||||||
Class P | (4,075,977 | ) | (9,008,456 | ) | (38,853,525 | ) | (7,677,376 | ) | (16,054,086 | ) | (2,505,288 | ) | ||||||||||||
Net Increase (Decrease) in Net Assets from | 15,858,798 | 16,011,367 | (27,896,337 | ) | 28,436,550 | (4,926,483 | ) | 16,074,041 | ||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | 20,852,463 | 35,648,132 | (36,639,294 | ) | 29,412,942 | (11,548,967 | ) | 9,110,848 | ||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||
Beginning of Year or Period | 193,537,734 | 157,889,602 | 165,168,329 | 135,755,387 | 73,586,425 | 64,475,577 | ||||||||||||||||||
End of Year or Period | $214,390,197 | $193,537,734 | $128,529,035 | $165,168,329 | $62,037,458 | $73,586,425 | ||||||||||||||||||
Undistributed/Accumulated Net Investment Income (Loss) | $1,727,284 | $739,211 | $660,428 | $187,653 | $160,007 | ($94,893 | ) |
(1) | Unaudited. |
See Notes to Financial Statements |
B-10
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
PL Small-Cap Growth Fund | PL Small-Cap Value Fund | PL Real Estate Fund | ||||||||||||||||||||||
Six-Month Period Ended September 30, 2012 (1) | Year Ended March 31, 2012 | Six-Month Period Ended September 30, 2012 (1) | Year Ended March 31, 2012 | Six-Month Period Ended September 30, 2012 (1) | Year Ended March 31, 2012 | |||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||
Net investment income (loss) | ($14,880 | ) | ($102,302 | ) | $795,269 | $1,236,211 | $237,642 | $519,888 | ||||||||||||||||
Net realized gain | 1,336,804 | 1,940,485 | 1,813,731 | 609,763 | 893,372 | 1,062,067 | ||||||||||||||||||
Change in net unrealized appreciation (depreciation) | (1,290,771 | ) | (1,384,256 | ) | (1,055,736 | ) | (727,008 | ) | 29,665 | 3,552,200 | ||||||||||||||
Net Increase in Net Assets Resulting from Operations | 31,153 | 453,927 | 1,553,264 | 1,118,966 | 1,160,679 | 5,134,155 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||
Class P | — | — | — | (1,046,454 | ) | — | (324,119 | ) | ||||||||||||||||
Net realized gains | ||||||||||||||||||||||||
Class P | — | — | — | — | — | — | ||||||||||||||||||
Net Decrease from Dividends and | — | — | — | (1,046,454 | ) | — | (324,119 | ) | ||||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||
Class P | 9,839,659 | 6,252,737 | 21,666,557 | 13,399,076 | 748,707 | 11,623,068 | ||||||||||||||||||
Dividends and distribution reinvestments | ||||||||||||||||||||||||
Class P | — | — | — | 1,046,454 | — | 324,119 | ||||||||||||||||||
Cost of shares repurchased | ||||||||||||||||||||||||
Class P | (2,372,778 | ) | (2,691,970 | ) | (1,424,075 | ) | (4,613,313 | ) | (1,292,053 | ) | (5,938,153 | ) | ||||||||||||
Net Increase (Decrease) in Net Assets from | 7,466,881 | 3,560,767 | 20,242,482 | 9,832,217 | (543,346 | ) | 6,009,034 | |||||||||||||||||
NET INCREASE IN NET ASSETS | 7,498,034 | 4,014,694 | 21,795,746 | 9,904,729 | 617,333 | 10,819,070 | ||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||
Beginning of Year or Period | 36,369,851 | 32,355,157 | 86,151,825 | 76,247,096 | 52,678,965 | 41,859,895 | ||||||||||||||||||
End of Year or Period | $43,867,885 | $36,369,851 | $107,947,571 | $86,151,825 | $53,296,298 | $52,678,965 | ||||||||||||||||||
Undistributed/Accumulated Net Investment Income (Loss) | ($23,079 | ) | ($8,199 | ) | $1,120,363 | $325,094 | $432,874 | $195,232 |
(1) | Unaudited. |
See Notes to Financial Statements |
B-11
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
PL Emerging Markets Fund | PL International Large-Cap Fund | PL International Value Fund | ||||||||||||||||||||||
Six-Month Period Ended September 30, 2012 (1) | Year Ended March 31, 2012 | Six-Month Period Ended September 30, 2012 (1) | Year Ended March 31, 2012 | Six-Month Period Ended September 30, 2012 (1) | Year Ended March 31, 2012 | |||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||
Net investment income | $550,656 | $778,205 | $2,626,431 | $2,519,676 | $2,220,391 | $3,008,134 | ||||||||||||||||||
Net realized gain (loss) | (429,711 | ) | 340,600 | 544,879 | (2,624,161 | ) | (3,704,237 | ) | (8,382,616 | ) | ||||||||||||||
Change in net unrealized appreciation (depreciation) | 1,859,641 | (2,935,849 | ) | (3,467,028 | ) | 7,176,932 | 847,166 | 1,902,876 | ||||||||||||||||
Net Increase (Decrease) in Net Assets | 1,980,586 | (1,817,044 | ) | (295,718 | ) | 7,072,447 | (636,680 | ) | (3,471,606 | ) | ||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||
Class P | — | (436,891 | ) | — | (2,241,781 | ) | — | (3,217,735 | ) | |||||||||||||||
Net realized gains | ||||||||||||||||||||||||
Class P | — | (1,469,568 | ) | — | — | — | — | |||||||||||||||||
Net Decrease from Dividends and | — | (1,906,459 | ) | — | (2,241,781 | ) | — | (3,217,735 | ) | |||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||
Class P | 20,025,803 | 26,496,874 | 17,993,590 | 69,389,238 | 43,324,783 | 30,876,665 | ||||||||||||||||||
Dividends and distribution reinvestments | ||||||||||||||||||||||||
Class P | — | 1,906,459 | — | 2,241,781 | — | 3,217,735 | ||||||||||||||||||
Cost of shares repurchased | ||||||||||||||||||||||||
Class P | (1,137,257 | ) | (3,466,862 | ) | (2,311,726 | ) | (10,550,933 | ) | (1,946,848 | ) | (6,528,836 | ) | ||||||||||||
Net Increase in Net Assets from | 18,888,546 | 24,936,471 | 15,681,864 | 61,080,086 | 41,377,935 | 27,565,564 | ||||||||||||||||||
NET INCREASE IN NET ASSETS | 20,869,132 | 21,212,968 | 15,386,146 | 65,910,752 | 40,741,255 | 20,876,223 | ||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||
Beginning of Year or Period | 85,483,234 | 64,270,266 | 203,943,758 | 138,033,006 | 111,118,504 | 90,242,281 | ||||||||||||||||||
End of Year or Period | $106,352,366 | $85,483,234 | $219,329,904 | $203,943,758 | $151,859,759 | $111,118,504 | ||||||||||||||||||
Undistributed/Accumulated Net Investment Income (Loss) | $384,740 | ($165,916 | ) | $3,931,588 | $1,305,157 | $3,303,944 | $1,083,553 |
(1) | Unaudited. |
See Notes to Financial Statements |
B-12
PACIFIC LIFE FUNDS
FOR THE SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2012 (Unaudited)
PL Inflation Managed Fund | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net increase in net assets from operations | $15,049,306 | |||||
Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities: | (229,531,018 | ) | ||||
Proceeds from disposition of long-term securities | 374,999,617 | |||||
Proceeds of short-term securities, net | 3,285,107 | |||||
Increase in swap premiums | 418,722 | |||||
Proceeds from written options | 123,664 | |||||
Cost of closed and expired options | (124,225 | ) | ||||
Litigation income | 4,215 | |||||
Decrease in dividends and interest receivable | 679,623 | |||||
Decrease in receivable for securities sold | 1,805,366 | |||||
Increase in receivable for swap agreements | (500,000 | ) | ||||
Increase in receivable due from adviser | (136 | ) | ||||
Decrease in prepaid expenses and other assets | 3,807 | |||||
Decrease in payable for securities purchased | (51,165,294 | ) | ||||
Increase in payable for swap agreements | 503,815 | |||||
Increase in payable for reverse repurchase agreements | 13,974,750 | |||||
Increase in payable due to brokers | 5,820,529 | |||||
Decrease in accrued advisory fees | (37,352 | ) | ||||
Decrease in accrued administration fees | (14,007 | ) | ||||
Increase in accrued support service expenses | 10,357 | |||||
Decrease in accrued custodian fees and expenses | (15,852 | ) | ||||
Decrease in accrued transfer agency out-of-pocket expenses | (761 | ) | ||||
Decrease in accrued legal, audit and tax service fees | (6,367 | ) | ||||
Increase in accrued trustees’ fees and expenses and deferred compensation | 280 | |||||
Increase in accrued other payables | 3,137 | |||||
Change in net unrealized appreciation on investment securities | (133,231 | ) | ||||
Change in net unrealized depreciation on swaps | 53,646 | |||||
Change in net unrealized depreciation on written options | 53,609 | |||||
Change in net unrealized depreciation on foreign currencies | 16,300 | |||||
Net realized gain on investment securities | (11,500,230 | ) | ||||
Net realized gain on swaps | (196,481 | ) | ||||
Net realized loss on written options | 2,455 | |||||
Net realized loss on foreign currency | 5,802 | |||||
Purchases of foreign currencies | (7,437 | ) | ||||
Decrease in variation margin | 22,523 | |||||
Net amortization on investments | (93,113 | ) | ||||
Net cash provided by operating activities | 123,511,126 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Proceeds from shares sold | 27,990,003 | |||||
Payments on shares redeemed | (151,666,678 | ) | ||||
Net cash used in financing activities | (123,676,675 | ) | ||||
NET DECREASE IN CASH AND FOREIGN CURRENCY | (165,549 | ) | ||||
CASH AND FOREIGN CURRENCY: | ||||||
Beginning of Period | 168,380 | |||||
End of Period | $2,831 |
(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 amounts shown in the Statement of Cash Flows are the amount included within the Statements of Assets and Liabilities and include cash and foreign currency, if any, on hand at the custodian bank and do not include any short-term investments. The PL Inflation Managed 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. |
See Notes to Financial Statements |
B-13
PACIFIC LIFE FUNDS
Selected per share, ratios and supplemental data for each year or period ended were as follows:
For the Year or Period Ended | | Net Asset Value, Beginning of Year or Period | | | Net Investment Income (Loss) (2) | | | Net Realized and Unrealized Gain (Loss) | | | Total from Investment Operations | | | Distributions from Net Investment Income | | | Distributions from Capital Gains | | | Total Distributions | | | Net Asset Value, End of Year or Period | | Total Returns (3) | | Net Assets, End of Year or Period (in thousands) | | | Ratios of Expenses Before Expense Reductions to Average Net Assets (4) | | | Ratio of Expenses After Expense Reductions to Average Net Assets (4), (5) | | | Ratios of Net Investment Income (Loss) to Average Net Assets (4) | | Portfolio Turnover Rates | ||||||||||||||||||||
PL Floating Rate Loan Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (6) | $10.10 | $0.22 | $0.07 | $0.29 | $— | $— | $— | $10.39 | 2.87 | % | $99,567 | 1.03 | % | 0.80 | % | 4.35 | % | 27.83 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.12 | 0.43 | (0.06 | ) | 0.37 | (0.39 | ) | — | (0.39 | ) | 10.10 | 3.80 | % | 112,088 | 1.04 | % | 0.80 | % | 4.33 | % | 44.93 | % | ||||||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 9.88 | 0.34 | 0.19 | 0.53 | (0.29 | ) | — | (0.29 | ) | 10.12 | 5.51 | % | 86,066 | 1.22 | % | 0.90 | % | 4.29 | % | 92.44 | % | |||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 8.18 | 0.45 | 1.70 | 2.15 | (0.45 | ) | — | (0.45 | ) | 9.88 | 26.70 | % | 53,122 | 1.54 | % | 1.30 | % | 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 | 1.53 | % | 1.30 | % | 5.90 | % | 56.30 | % | |||||||||||||||||||||||||||||||||||
PL Inflation Managed Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (6) | $10.79 | $0.16 | $0.50 | $0.66 | $— | $— | $— | $11.45 | 6.12 | % | $177,078 | 0.69 | % | 0.57 | % | 2.78 | % | 82.89 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.53 | 0.31 | 0.85 | 1.16 | (0.40 | ) | (0.50 | ) | (0.90 | ) | 10.79 | 11.11 | % | 287,956 | 0.67 | % | 0.56 | % | 2.83 | % | 372.47 | % | ||||||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.10 | 0.24 | 0.61 | 0.85 | (0.21 | ) | (0.21 | ) | (0.42 | ) | 10.53 | 8.56 | % | 229,356 | 0.82 | % | 0.64 | % | 2.31 | % | 322.90 | % | ||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 9.59 | 0.29 | 0.62 | 0.91 | (0.40 | ) | — | (0.40 | ) | 10.10 | 9.68 | % | 149,453 | 1.21 | % | 0.95 | % | 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 | 1.35 | % | 1.01 | % | 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 | 1.49 | % | 1.15 | % | 4.77 | % | 474.46 | % | |||||||||||||||||||||||||||||||||||||
PL Managed Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (6) | $10.86 | $0.10 | $0.48 | $0.58 | $— | $— | $— | $11.44 | 5.24 | % | $567,510 | 0.64 | % | 0.55 | % | 1.87 | % | 287.92 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.75 | 0.25 | 0.15 | 0.40 | (0.29 | ) | — | (0.29 | ) | 10.86 | 4.02 | % | 486,215 | 0.67 | % | 0.55 | % | 2.33 | % | 519.00 | % | |||||||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.75 | 0.24 | 0.43 | 0.67 | (0.30 | ) | (0.37 | ) | (0.67 | ) | 10.75 | 6.31 | % | 378,982 | 0.82 | % | 0.63 | % | 2.16 | % | 501.72 | % | ||||||||||||||||||||||||||||||||||||
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 | 1.22 | % | 0.95 | % | 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 | 1.30 | % | 1.01 | % | 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 | 1.50 | % | 1.15 | % | 4.05 | % | 424.71 | % | ||||||||||||||||||||||||||||||||||||
PL Short Duration Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (6) | $10.07 | $0.06 | $0.09 | $0.15 | $— | $— | $— | $10.22 | 1.49 | % | $226,784 | 0.64 | % | 0.55 | % | 1.15 | % | 33.48 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.04 | 0.11 | 0.05 | 0.16 | (0.12 | ) | (0.01 | ) | (0.13 | ) | 10.07 | 1.62 | % | 155,368 | 0.68 | % | 0.55 | % | 1.14 | % | 150.23 | % | ||||||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.00 | 0.10 | 0.06 | 0.16 | (0.08 | ) | (0.04 | ) | (0.12 | ) | 10.04 | 1.57 | % | 121,133 | 0.81 | % | 0.64 | % | 1.00 | % | 195.72 | % | ||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 9.69 | 0.18 | 0.33 | 0.51 | (0.20 | ) | — | (0.20 | ) | 10.00 | 5.27 | % | 75,674 | 1.22 | % | 0.95 | % | 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 | 1.26 | % | 1.02 | % | 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 | 1.42 | % | 1.15 | % | 3.48 | % | 41.74 | % | |||||||||||||||||||||||||||||||||||||
PL Emerging Markets Debt Fund (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6/29/2012 - 9/30/2012 (6) | $10.00 | $0.12 | $0.48 | $0.60 | $— | $— | $— | $10.60 | 6.00 | % | $85,683 | 1.38 | % | 0.94 | % | 4.48 | % | 11.78 | % | |||||||||||||||||||||||||||||||||||||||
PL Comstock Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (6) | $12.47 | $0.09 | $0.22 | $0.31 | $— | $— | $— | $12.78 | 2.49 | % | $265,294 | 0.97 | % | 0.89 | % | 1.45 | % | 11.24 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 12.13 | 0.17 | 0.32 | 0.49 | (0.15 | ) | — | (0.15 | ) | 12.47 | 4.22 | % | 207,330 | 0.99 | % | 0.89 | % | 1.47 | % | 23.54 | % | |||||||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.69 | 0.13 | 1.41 | 1.54 | (0.10 | ) | — | (0.10 | ) | 12.13 | 14.55 | % | 166,465 | 1.13 | % | 0.99 | % | 1.16 | % | 30.58 | % | |||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 6.95 | 0.09 | 3.74 | 3.83 | (0.09 | ) | — | (0.09 | ) | 10.69 | 55.34 | % | 128,169 | 1.51 | % | 1.30 | % | 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 | 1.58 | % | 1.37 | % | 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 | 1.77 | % | 1.50 | % | 1.09 | % | 23.28 | % | ||||||||||||||||||||||||||||||||||
PL Growth LT Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (6) | $13.12 | $0.03 | $0.01 | $0.04 | $— | $— | $— | $13.16 | 0.31 | % | $40,801 | 0.89 | % | 0.70 | % | 0.41 | % | 34.64 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 12.42 | 0.06 | 0.71 | 0.77 | (0.07 | ) | — | (0.07 | ) | 13.12 | 6.26 | % | 108,340 | 0.85 | % | 0.70 | % | 0.54 | % | 83.66 | % | |||||||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 11.21 | 0.07 | 1.14 | 1.21 | — | — | — | 12.42 | 10.79 | % | 115,576 | 0.95 | % | 0.79 | % | 0.58 | % | 82.71 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 7.74 | 0.02 | 3.60 | 3.62 | (0.15 | ) | — | (0.15 | ) | 11.21 | 47.26 | % | 89,219 | 1.37 | % | 1.10 | % | 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 | 1.42 | % | 1.15 | % | 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 | 1.66 | % | 1.30 | % | 0.36 | % | 81.50 | % | ||||||||||||||||||||||||||||||||||
PL Large-Cap Growth Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (6) | $10.30 | ($0.01 | ) | $— | ($0.01 | ) | $— | $— | $— | $10.29 | (0.10 | %) | $135,454 | 0.98 | % | 0.88 | % | (0.21 | %) | 37.19 | % | |||||||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 9.23 | (0.02 | ) | 1.25 | 1.23 | — | (0.16 | ) | (0.16 | ) | 10.30 | 13.65 | % | 129,222 | 1.00 | % | 0.88 | % | (0.26 | %) | 76.21 | % | ||||||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 7.71 | (0.01 | ) | 1.53 | 1.52 | — | — | — | 9.23 | 19.72 | % | 99,101 | 1.12 | % | 0.95 | % | (0.11 | %) | 101.69 | % | ||||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 5.44 | (0.03 | ) | 2.30 | 2.27 | — | — | — | 7.71 | 41.73 | % | 61,106 | 1.59 | % | 1.28 | % | (0.38 | %) | 115.83 | % | ||||||||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 | 9.24 | (0.05 | ) | (3.75 | ) | (3.80 | ) | — | — | — | 5.44 | (41.13 | %) | 16,515 | 1.81 | % | 1.37 | % | (0.61 | %) | 179.61 | % | ||||||||||||||||||||||||||||||||||||
4/1/2007 - 3/31/2008 | 9.43 | (0.08 | ) | (0.11 | ) | (0.19 | ) | — | — | — | 9.24 | (2.01 | %) | 26,235 | 1.92 | % | 1.50 | % | (0.79 | %) | 178.83 | % | ||||||||||||||||||||||||||||||||||||
PL Large-Cap Value Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (6) | $12.31 | $0.11 | $0.36 | $0.47 | $— | $— | $— | $12.78 | 3.82 | % | $330,205 | 0.87 | % | 0.80 | % | 1.75 | % | 6.69 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.59 | 0.22 | 0.71 | 0.93 | (0.21 | ) | — | (0.21 | ) | 12.31 | 8.21 | % | 262,917 | 0.89 | % | 0.80 | % | 1.96 | % | 20.28 | % | |||||||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.42 | 0.16 | 1.15 | 1.31 | (0.14 | ) | — | (0.14 | ) | 11.59 | 12.69 | % | 228,436 | 1.01 | % | 0.89 | % | 1.56 | % | 18.76 | % | |||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 7.35 | 0.14 | 3.07 | 3.21 | (0.14 | ) | — | (0.14 | ) | 10.42 | 43.79 | % | 162,312 | 1.38 | % | 1.20 | % | 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 | 1.48 | % | 1.25 | % | 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 | 1.69 | % | 1.40 | % | 0.79 | % | 24.35 | % |
See Notes to Financial Statements | See explanation of references on B-16 |
B-14
PACIFIC LIFE FUNDS
FINANCIAL HIGHLIGHTS (1) (Continued)
Selected per share, ratios and supplemental data for each year or period ended were as follows:
For the Year or Period Ended | | Net Asset Value, Beginning of Year or Period | | | Net Investment Income (Loss) (2) | | | Net Realized and Unrealized Gain (Loss) | | | Total from Investment Operations | | | Distributions from Net Investment Income | | | Distributions from Capital Gains | | | Total Distributions | | | Net Asset Value, End of Year or Period | | Total Returns (3) | | Net Assets, End of Year or Period (in thousands) | | | Ratios of Expenses Before Expense Reductions to Average Net Assets (4) | | | Ratio of Expenses After Expense Reductions to Average Net Assets (4), (5) | | | Ratios of Net Investment Income (Loss) to Average Net Assets (4) | | Portfolio Turnover Rates | ||||||||||||||||||||
PL Main Street Core Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (6) | $11.26 | $0.05 | $0.16 | $0.21 | $— | $— | $— | $11.47 | 1.87 | % | $214,390 | 0.68 | % | 0.60 | % | 1.00 | % | 26.49 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.13 | 0.10 | 1.11 | 1.21 | (0.08 | ) | — | (0.08 | ) | 11.26 | 12.12 | % | 193,538 | 0.70 | % | 0.60 | % | 1.00 | % | 47.65 | % | |||||||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 9.00 | 0.09 | 1.10 | 1.19 | (0.06 | ) | — | (0.06 | ) | 10.13 | 13.28 | % | 157,890 | 0.83 | % | 0.70 | % | 0.93 | % | 58.13 | % | |||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 6.11 | 0.07 | 2.89 | 2.96 | (0.07 | ) | — | (0.07 | ) | 9.00 | 48.57 | % | 146,028 | 1.23 | % | 1.00 | % | 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 | 1.41 | % | 1.06 | % | 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 | 1.50 | % | 1.20 | % | 0.69 | % | 126.84 | % | ||||||||||||||||||||||||||||||||||
PL Mid-Cap Equity Fund (7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (6) | $10.29 | $0.03 | ($0.52 | ) | ($0.49 | ) | $— | $— | $— | $9.80 | (4.76 | %) | $128,529 | 0.90 | % | 0.80 | % | 0.65 | % | 48.25 | % | |||||||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.46 | 0.05 | (0.18 | ) | (0.13 | ) | (0.04 | ) | — | (0.04 | ) | 10.29 | (1.17 | %) | 165,168 | 0.89 | % | 0.80 | % | 0.51 | % | 102.11 | % | |||||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 8.66 | 0.08 | 1.79 | 1.87 | (0.07 | ) | — | (0.07 | ) | 10.46 | 21.70 | % | 135,755 | 1.02 | % | 0.89 | % | 0.87 | % | 87.04 | % | |||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 5.33 | 0.03 | 3.34 | 3.37 | (0.04 | ) | — | (0.04 | ) | 8.66 | 63.29 | % | 101,650 | 1.41 | % | 1.20 | % | 0.44 | % | 74.00 | % | |||||||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 | 8.92 | 0.07 | (3.58 | ) | (3.51 | ) | (0.08 | ) | (0.00 | )(8) | (0.08 | ) | 5.33 | (39.44 | %) | 59,135 | 1.52 | % | 1.26 | % | 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 | 1.69 | % | 1.40 | % | 0.55 | % | 70.09 | % | ||||||||||||||||||||||||||||||||||
PL Mid-Cap Growth Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (6) | $8.87 | $0.03 | ($0.83 | ) | ($0.80 | ) | $— | $— | $— | $8.07 | (9.02 | %) | $62,037 | 0.97 | % | 0.85 | % | 0.79 | % | 16.32 | % | |||||||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.28 | (0.02 | ) | (0.28 | ) | (0.30 | ) | (0.05 | ) | (1.06 | ) | (1.11 | ) | 8.87 | (1.08 | %) | 73,586 | 0.98 | % | 0.85 | % | (0.21 | %) | 26.59 | % | |||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 8.41 | 0.02 | 2.83 | 2.85 | (0.02 | ) | (0.96 | ) | (0.98 | ) | 10.28 | 35.16 | % | 64,476 | 1.17 | % | 0.95 | % | 0.24 | % | 44.37 | % | ||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 4.98 | (0.03 | ) | 3.56 | 3.53 | — | (0.10 | ) | (0.10 | ) | 8.41 | 70.89 | % | 54,994 | 1.53 | % | 1.25 | % | (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 | 1.80 | % | 1.34 | % | (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 | 1.80 | % | 1.45 | % | (0.19 | %) | 77.63 | % | ||||||||||||||||||||||||||||||||||||
PL Small-Cap Growth Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (6) | $11.86 | ($0.00 | )(8) | ($0.08 | ) | ($0.08 | ) | $— | $— | $— | $11.78 | (0.68 | %) | $43,868 | 0.90 | % | 0.75 | % | (0.08 | %) | 45.40 | % | ||||||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.90 | (0.03 | ) | (0.01 | ) | (0.04 | ) | — | — | — | 11.86 | (0.34 | %) | 36,370 | 0.93 | % | 0.75 | % | (0.31 | %) | 66.60 | % | ||||||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 9.41 | (0.06 | ) | 2.55 | 2.49 | — | — | — | 11.90 | 26.46 | % | 32,355 | 1.11 | % | 0.84 | % | (0.63 | %) | 85.58 | % | ||||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 5.88 | (0.06 | ) | 3.59 | 3.53 | — | — | — | 9.41 | 60.03 | % | 25,691 | 1.56 | % | 1.15 | % | (0.81 | %) | 87.50 | % | ||||||||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 | 9.12 | (0.07 | ) | (3.17 | ) | (3.24 | ) | — | — | — | 5.88 | (35.53 | %) | 24,046 | 1.71 | % | 1.28 | % | (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 | 1.90 | % | 1.55 | % | (1.07 | %) | 163.56 | % | ||||||||||||||||||||||||||||||||||
PL Small-Cap Value Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (6) | $10.58 | $0.09 | ($0.02 | ) | $0.07 | $— | $— | $— | $10.65 | 0.66 | % | $107,948 | 0.99 | % | 0.90 | % | 1.67 | % | 24.40 | % | ||||||||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.60 | 0.16 | (0.05 | ) | 0.11 | (0.13 | ) | — | (0.13 | ) | 10.58 | 1.19 | % | 86,152 | 1.02 | % | 0.90 | % | 1.59 | % | 20.85 | % | ||||||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 8.57 | 0.16 | 1.98 | 2.14 | (0.11 | ) | — | (0.11 | ) | 10.60 | 25.11 | % | 76,247 | 1.13 | % | 0.97 | % | 1.71 | % | 31.06 | % | |||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 5.49 | 0.13 | 3.06 | 3.19 | (0.11 | ) | — | (0.11 | ) | 8.57 | 58.28 | % | 38,173 | 1.58 | % | 1.30 | % | 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 | 1.73 | % | 1.34 | % | 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 | 2.07 | % | 1.50 | % | 1.46 | % | 17.98 | % | |||||||||||||||||||||||||||||||||||
PL Real Estate Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (6) | $12.59 | $0.06 | $0.23 | $0.29 | $— | $— | $— | $12.88 | 2.30 | % | $53,296 | 1.15 | % | 1.05 | % | 0.89 | % | 9.51 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.46 | 0.13 | 1.08 | 1.21 | (0.08 | ) | — | (0.08 | ) | 12.59 | 10.62 | % | 52,679 | 1.18 | % | 1.05 | % | 1.13 | % | 23.69 | % | |||||||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 9.24 | 0.08 | 2.23 | 2.31 | (0.09 | ) | — | (0.09 | ) | 11.46 | 25.16 | % | 41,860 | 1.34 | % | 1.14 | % | 0.77 | % | 32.30 | % | |||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 4.60 | 0.12 | 4.64 | 4.76 | (0.12 | ) | — | (0.12 | ) | 9.24 | 104.32 | % | 36,352 | 1.76 | % | 1.45 | % | 1.68 | % | 26.55 | % | |||||||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 | 11.25 | 0.15 | (6.65 | ) | (6.50 | ) | (0.15 | )(9) | — | (0.15 | ) | 4.60 | (58.24 | %) | 20,775 | 1.89 | % | 1.51 | % | 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 | 2.03 | % | 1.65 | % | 1.02 | % | 34.98 | % | ||||||||||||||||||||||||||||||||||
PL Emerging Markets Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (6) | $13.55 | $0.08 | $0.01 | $0.09 | $— | $— | $— | $13.64 | 0.67 | % | $106,352 | 1.35 | % | 0.95 | % | 1.20 | % | 11.06 | % | |||||||||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 14.68 | 0.14 | (0.95 | ) | (0.81 | ) | (0.07 | ) | (0.25 | ) | (0.32 | ) | 13.55 | (5.15 | %) | 85,483 | 1.49 | % | 0.95 | % | 1.09 | % | 29.84 | % | ||||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 12.19 | 0.11 | 2.64 | 2.75 | (0.26 | ) | — | (0.26 | ) | 14.68 | 22.53 | % | 64,270 | 1.56 | % | 1.04 | % | 0.80 | % | 45.98 | % | |||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 6.54 | 0.06 | 5.66 | 5.72 | (0.07 | ) | — | (0.07 | ) | 12.19 | 87.45 | % | 47,714 | 2.15 | % | 1.35 | % | 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 | 2.34 | % | 1.42 | % | 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 | 2.38 | % | 1.55 | % | 0.46 | % | 60.20 | % | ||||||||||||||||||||||||||||||||||||
PL International Large-Cap Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (6) | $15.12 | $0.19 | ($0.32 | ) | ($0.13 | ) | $— | $— | $— | $14.99 | (0.86 | %) | $219,330 | 1.12 | % | 1.00 | % | 2.59 | % | 11.52 | % | |||||||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 15.37 | 0.22 | (0.30 | ) | (0.08 | ) | (0.17 | ) | — | (0.17 | ) | 15.12 | (0.32 | %) | 203,944 | 1.17 | % | 1.00 | % | 1.52 | % | 23.96 | % | |||||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 13.83 | 0.16 | 1.52 | 1.68 | (0.14 | ) | — | (0.14 | ) | 15.37 | 12.36 | % | 138,033 | 1.30 | % | 1.09 | % | 1.16 | % | 33.73 | % | |||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 9.17 | 0.16 | 4.64 | 4.80 | (0.14 | ) | — | (0.14 | ) | 13.83 | 52.64 | % | 108,002 | 1.72 | % | 1.40 | % | 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 | 1.82 | % | 1.46 | % | 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 | 1.99 | % | 1.60 | % | 1.18 | % | 28.23 | % |
See Notes to Financial Statements | See explanation of references on B-16 |
B-15
PACIFIC LIFE FUNDS
FINANCIAL HIGHLIGHTS (1) (Continued)
Selected per share, ratios and supplemental data for each year or period ended were as follows:
For the Year or Period Ended | | Net Asset Value, Beginning of Year or Period | | | Net Investment Income (2) | | | Net Realized and Unrealized Gain (Loss) | | | Total from Investment Operations | | | Distributions from Net Investment Income | | | Distributions from Capital Gains | | | Total Distributions | | | Net Asset Value, End of Year or Period | | Total Returns (3) | | Net Assets, End of Year or Period (in thousands) | | | Ratios of Expenses Before Expense Reductions to Average Net Assets (4) | | | Ratio of Expenses After Expense Reductions to Average Net Assets (4), (5) | | | Ratios of Net Investment Income to Average Net Assets (4) | | Portfolio Turnover Rates | ||||||||||||||||||||
PL International Value Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2012 - 9/30/2012 (6) | $8.62 | $0.14 | ($0.36 | ) | ($0.22 | ) | $— | $— | $— | $8.40 | (2.55 | %) | $151,860 | 0.93 | % | 0.80 | % | 3.47 | % | 25.96 | % | |||||||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 9.51 | 0.26 | (0.89 | ) | (0.63 | ) | (0.26 | ) | — | (0.26 | ) | 8.62 | (6.20 | %) | 111,119 | 1.02 | % | 0.80 | % | 3.06 | % | 63.04 | % | |||||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 9.19 | 0.18 | 0.35 | 0.53 | (0.21 | ) | — | (0.21 | ) | 9.51 | 5.99 | % | 90,242 | 1.14 | % | 0.90 | % | 2.01 | % | 149.95 | % | |||||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 6.14 | 0.19 | 3.00 | 3.19 | (0.14 | ) | — | (0.14 | ) | 9.19 | 52.10 | % | 86,284 | 1.56 | % | 1.20 | % | 2.28 | % | 59.92 | % | |||||||||||||||||||||||||||||||||||||
4/1/2008 - 3/31/2009 | 12.82 | 0.26 | (6.72 | ) | (6.46 | ) | (0.22 | ) | (0.00 | )(8) | (0.22 | ) | 6.14 | (50.74 | %) | 78,604 | 1.58 | % | 1.27 | % | 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 | 1.72 | % | 1.40 | % | 1.50 | % | 17.40 | % |
(1) | All the funds covered in this report currently offer Class P shares only. Effective July 2, 2010, all Class A shares of these funds were converted to Class P shares. Performance information prior to the conversion for these funds pertains to Class A shares and reflects the fees and expenses associated with that share class. The PL Emerging Markets Debt Fund commenced operations on June 29, 2012. |
(2) | Net investment income (loss) per share has been calculated using the average shares method. |
(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 are annualized for periods of less than one full year. |
(5) | The ratios of expenses after expense reductions to average net assets are after any advisory fee waivers and adviser expense reimbursements as discussed in Note 6 and Note 7B, respectively, in Notes to the Financial Statements. |
(6) | Unaudited. |
(7) | Prior to July 1, 2008, the PL Mid-Cap Equity Fund was named PL Mid-Cap Value Fund. |
(8) | Amount represents less than $0.005 per share or less than 0.005%. |
(9) | Includes return of capital distribution of $0.01 per share. |
See Notes to Financial Statements |
B-16
PACIFIC LIFE FUNDS
(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. Pacific Life Fund Advisors LLC (“PLFA” or “Adviser”) serves as investment advisor to the Trust. As of September 30, 2012, the Trust was comprised of twenty-nine separate funds, eighteen of which are covered by this report (each individually, a “Fund”, and collectively the “Funds”): PL Floating Rate Loan Fund, PL Inflation Managed Fund, PL Managed Bond Fund, PL Short Duration Bond Fund, PL Emerging Markets Debt 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 (collectively the “PL Underlying Funds”).
The PL Underlying Funds offer Class P shares only, which are sold 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 Adviser and certain of its affiliates can invest in the PL Underlying Funds.
The semi-annual report for the Portfolio Optimization Funds is not included in this report; there is a separate semi-annual report for the Portfolio Optimization Funds, which is available without charge. For information on how to obtain the annual report for the Portfolio Optimization Funds, see the Where to Go for More Information section of this report on page D-5.
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 disclosures 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. INVESTMENT TRANSACTIONS AND INCOME
Investment 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, which 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 income, 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, adjusted for amortization of premium and accretion of discount, is recorded daily on an accrual 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 the 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 4) 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 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 recorded as interest income when received. Realized gains and losses from investment 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.
B. DISTRIBUTIONS TO SHAREHOLDERS
Each Fund covered in this report distribute all of its net investment income and realized capital gains, if any, to shareholders at least annually, although distributions could occur more if advantageous to the applicable Fund and its shareholders. Dividends and distributions paid to shareholders are recorded on the ex-dividend date.
C. FOREIGN CURRENCY TRANSLATION
The Trust’s accounting records are maintained in U.S. dollars. The market value of investments and other assets and liabilities, initially expressed in non-U.S. currencies, are translated into U.S. dollars based on the applicable exchange rates at the end of each business day. Purchases and sales of investments and income and expenses, denominated in foreign currencies, are translated into U.S. dollars at the exchange rates in effect on the transaction date.
None of the Funds separately report the effect of changes in foreign exchange rates from changes in market prices of investments held. Such changes are included with the net realized gain or loss and change in net unrealized appreciation or depreciation on investments. Other foreign currency transactions resulting in realized and unrealized gain or loss, if any, are reported separately as net realized gain or loss on foreign currency transactions and change in net unrealized appreciation or depreciation on foreign currencies.
D. ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES
Certain Trust expenses directly attributable to a particular Fund are charged to that Fund (such as Fund-specific transactional fees, proxies, liquidations, litigation, and organizational/start-up costs). Generally, other Trust expenses are allocated proportionately among all the Funds in relation to the net assets of each Fund.
C-1
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
E. OFFERING COSTS
A new Fund bears all costs (or the applicable pro-rata share if there is more than one new Fund) associated with the offering expenses of the Fund including legal, printing and support services (see Notes 6 and 7A). All such costs are amortized as an expense of the new Fund on a straight-line basis over twelve months from commencement of operations.
F. RECENT ACCOUNTING PRONOUNCEMENT
In December 2011, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) that requires disclosures to make financial statements that are prepared under U.S. GAAP more comparable to those prepared under International Financial Reporting Standards. The new disclosure requirements mandate that entities disclose both gross and net information about instruments and transactions eligible for offset in the statement of assets and liabilities such as instruments and transactions subject to an agreement similar to a master netting arrangement. In addition, this ASU requires disclosure of collateral received and posted in connection with master netting agreements or similar arrangements. This ASU is effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact, if any, that the implementation of this ASU will have on the Trust’s financial statement disclosures.
3. VALUATION AND FAIR VALUE MEASUREMENTS
A. VALUATION POLICY AND PROCEDURES
The Trust’s Board of Trustees (the “Board”) has adopted procedures (“Trust Procedures”) for determining the value of its investments each business day. Under the Trust Procedures, the Board has delegated its authority to a Trustee Valuation Committee or another valuation committee to determine the value of each Fund’s assets each business day. Each valuation committee that values each Fund’s investments does so in accordance with the Trust Procedures, which includes using third party pricing services and/or alternate valuation methodologies approved by the Board. Notes 3B and 3C below describe in greater detail the methodologies used to value each Fund’s investments.
B. NET ASSET VALUE
Each Fund is divided into shares. The price per share of each class of a Fund’s shares is called the NAV. The NAV forms the basis for all transactions involving buying, selling, exchanging or reinvesting shares. Each Fund’s NAV is calculated by taking the total value of a Fund’s assets (the value of the securities and other investments a Fund holds), subtracting a Fund’s liabilities, and dividing by the total number of shares outstanding.
Each Fund’s NAV is calculated once a day, every day the New York Stock Exchange (“NYSE”) is open, including days when foreign markets are closed. For purposes of calculating the NAV, the value of investments held by each Fund is generally determined as of the time of the close of the NYSE, which is usually 4:00 p.m. Eastern Time. Information that becomes known to the Trust or its agents after the NAV has been calculated on a particular day will not normally be used to retroactively adjust the price of an investment or the NAV determined earlier that day.
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 Securities and Exchange Commission (“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.
Certain Funds may hold investments that are primarily listed on foreign exchanges. Because those investments trade on weekends or days when the Funds do not calculate their NAVs, the value of those investments may change on days when a shareholder will not be able to purchase or redeem Fund shares.
C. INVESTMENT VALUATION
The value of each security or other investment is the amount which a Fund might reasonably expect to receive for the investment upon its current sale in the ordinary course of business. For purposes of calculating the NAV, the value of investments held by each Fund is based primarily on pricing data obtained from various sources approved by the Board:
Money Market Instruments and Short-Term Investments
Money market instruments and short-term investments maturing within 60 days are valued at amortized cost in accordance with the 1940 Act. Amortized cost involves valuing an investment 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 investment. Fund investments in other mutual funds for temporary cash management purposes are valued at their respective NAVs.
Domestic Equity Investments
For domestic equity investments (including exchange-traded futures and options), the Trust uses the last reported sale price or official closing price as of the time of the NYSE close and do not normally take into account trading, clearances or settlements that take place after the NYSE close. Investments, for which no sales are reported, are generally valued at the mean between the most recent bid and ask prices obtained from approved pricing services, established market makers, or from broker-dealers.
Foreign Equity Investments
Foreign equity investments are normally priced based on data reflecting the closing of the principal markets or market participants for those investments, 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 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 to determine the appropriate adjustments for market events. Quotations of foreign investments in foreign currencies are converted into U.S. dollar equivalents using a foreign exchange quotation from an approved source.
C-2
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
Over the Counter (“OTC”) Investments and Certain Equity Investments
OTC investments (including swaps and options), are generally valued by approved pricing services that use evaluated prices determined from various observable market and other factors. Certain OTC swap contracts are valued using alternative valuation methodologies approved by the Board.
Domestic and Foreign Fixed Income Investments
Fixed income investments are generally valued by approved pricing and quotation services using the mean between the most recent bid and ask prices which are based upon 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.
Investment Values Determined by a Valuation Committee
The Trust Procedures include methodologies approved for valuing investments in circumstances where market quotations are not readily available. In such circumstances, the Trust Procedures provide that the value of such investments may be determined in accordance with alternative valuation methodologies. Under the Trust Procedures these alternative methodologies may include, among others, the use of broker quotes, the use of a purchase price for initial public offerings, proration rates, and benchmark and matrix pricing. In the event market quotations or alternate valuation methodologies are not readily available or reliable, the value of the investments will be determined in good faith by the Trustee Valuation Committee or determined by a valuation committee established under the Trust Procedures and then subsequently approved by the Board. Valuations determined by a Trustee Valuation Committee or other valuation committee may require subjective inputs about the value of such investments. While these valuations are intended to estimate the value a Fund might reasonably expect to receive upon the current sale of the investments in the ordinary course of business, such values may differ from the value that a Fund would actually realize if the investments were sold.
Market quotations are considered not readily available if: (1) the market quotations received are deemed unreliable or inaccurate, (2) approved pricing services do not provide a valuation for a particular investment, or (3) material events occur after the close of the principal market for a particular investment but prior to the close of the NYSE.
D. FAIR VALUE MEASUREMENTS AND DISCLOSURES
The Trust characterizes its investments as Level 1, Level 2 or Level 3 based upon the various inputs or methodologies used to value the investments. Under the Trust Procedures, a valuation oversight committee (“VOC”) has been established which determines the level in which each Fund’s investments are characterized. The VOC includes investment, legal and compliance members of the Trust’s adviser, its administrator, and the Trust’s Chief Compliance Officer (“CCO”). The three-tier hierarchy of inputs is summarized in the three broad levels listed below:
• Level 1 - Quoted | prices (unadjusted) in active markets for identical investments |
• 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 VOC reviews the Trust Procedures periodically (at least annually) to determine the validity and accuracy of the inputs and methodologies used to value each Fund’s investments. The VOC also periodically re-evaluates how each Fund’s investments are characterized within the three-tier hierarchy and the validity of third party pricing sources. The VOC also periodically (at least annually) conducts back testing of the methodologies used to value Level 3 investments to substantiate the unobservable inputs used to value those investments. Such back-testing includes comparing Level 3 investment values to subsequently available exchange-traded prices, transaction prices, and/or observable vendor prices. All changes to the Trust Procedures are reported to the Board on a quarterly basis with material changes, as determined by the Trust’s CCO, requiring approval by the Board. In addition, all investments categorized as Level 3 under the three-tier hierarchy are reported to the Chairman of the Audit Committee on a quarterly basis and such report includes the inputs and methodologies used to value those investments.
The inputs or methodologies used for valuing each Fund’s investments are not necessarily an indication of the relative risks associated with investing in those investments. For example, 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 an investment, but since the value is not obtained from a quoted price in an active market, such investments are reflected as Level 2. Foreign investments 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 3C) are reflected as Level 2. For fair valuations using significant unobservable inputs, the Trust presents 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 between levels are based on values at the end of the period. A summary of each Fund’s investments as of September 30, 2012 as categorized under the three-tier hierarchy of inputs can be found in the Notes to Schedule of Investments section of each Fund’s Schedule of Investments.
The following is a description of valuation inputs and techniques that the Trust currently utilizes to fair value each major category of assets and liabilities.
Equity Securities (Common and Preferred Stock) and Mutual Funds
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
C-3
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
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.
Investments in mutual funds are valued at their respective NAV and are categorized as Level 1.
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-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.
Mortgage-Backed Securities and Asset-Backed Securities
Mortgage-backed securities, including government sponsored enterprises, 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, 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 mortgage-backed securities would be categorized as Level 2; otherwise the fair value would be categorized as Level 3.
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.
Municipal Bonds
Municipal bonds are fair valued based on pricing models that take into account, among other factors, information received from market makers and broker-dealers, current trades, bid 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 daily 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 and Notes and U.S. Government & Agency Issues
Corporate bonds held by a Fund are generally comprised 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, issuer credit information, and option-adjusted spread models where applicable. 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.
U.S. Government & Agency Issues 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, issuer credit information, and option-adjusted spread models where applicable. To the extent that these inputs are observable and timely, the fair values of U.S. Government & Agency Issues 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. OTC options contracts are fair valued based on either broker-dealer quotations or pricing models that incorporate 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.
C-4
PACIFIC LIFE FUNDS
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. 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.
Swaps
Interest Rate Swaps – Interest rate swaps that are actively traded and cleared 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. Interest rate swaps traded over-the-counter are fair valued using pricing models that are based on real-time 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 that are actively traded and cleared 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. Credit default swaps traded over-the-counter 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.
Senior Loan Notes
Floating rate 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 broker-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.
Short-Term Investments
Short-term investments maturing within 60 days are valued using amortized cost, which is used if it approximates market value, and are reflected as Level 2. Repurchase agreements are fully collateralized. The collateral is evaluated daily to ensure its market value equals or exceeds the current market value of the repurchase agreements including accrued interest.
4. INVESTMENTS AND RISKS
General Investment Risks
An investment in each Fund represents an indirect investment in the assets owned by that Fund. As with any mutual fund, the value of assets owned by a Fund 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 amount invested. Events in the financial markets have the potential to cause increased volatility and uncertainty, which may impact the value of each Fund’s investments. 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 investments 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 investments. In addition, traditionally liquid investments may experience periods of diminished liquidity. Governmental and regulatory responses to market events may impair either the Adviser’s or a sub-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.
Equity Investments
The price of equity investments change in response to many factors, including a company’s historical and prospective earnings, cash flows, the value of its assets, investor perceptions and many of the General Investment Risk factors noted above.
Fixed Income Investments
Fixed income (debt) investments are affected primarily by the financial condition of the companies or other entities 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) investments. There is a risk that an issuer of a Fund’s fixed income (debt) investments 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, e.g., bonds with low credit ratings by Moody’s (Ba or lower) or Standard & Poor’s (BB and lower) or if unrated are of comparable quality as determined by the manager, 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 investments 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 investments, and it may be difficult to value these instruments because of a thin secondary market.
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Foreign Investments
There are certain additional risks involved in investing in foreign securities that are generally not inherent in investments in domestic securities. These risks may involve foreign currency fluctuations, adverse political, social and economic developments and the possible imposition of currency exchange blockages or other foreign governmental laws or restrictions. In addition, the securities of some foreign companies and securities markets are less liquid and at times more volatile than securities of comparable U.S. companies and U.S. securities markets. The markets in emerging markets countries can be extremely volatile.
Illiquid Investments
Each Fund may not invest in illiquid securities and illiquid bank loans (collectively, “Illiquid Investments”) 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 Investments. The term “Illiquid Investments” for this purpose means investments 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 investments. Illiquid Investments may be difficult to value and difficult to sell, which means a Fund may not be able to sell such investments quickly for their full value. The value of Illiquid Investments held by each Fund as of September 30, 2012 was less than 15% of its net assets.
Senior Loan Participations and Assignments
Certain Funds may invest in Senior Loans, the interest rates of which float or adjust periodically based upon a specified adjustment schedule, benchmark indicator, or prevailing interest rates of domestic or foreign corporations, partnerships and other entities (“Borrowers”). Senior Loans generally pay interest at rates which are periodically redetermined by reference to a base lending rate plus a premium. These base lending rates generally include prime rates of one or more major U.S. banks, LIBOR rates or certificates of deposit rates. Senior Loans often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay cannot be predicted with accuracy. As a result, the actual maturity may be substantially less than the stated maturities. Senior Loans are exempt from registration under the Securities Act of 1933, may contain certain restrictions on resale, and cannot be sold publicly. A Fund’s investments in Senior Loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties.
When a Fund purchases assignments, it acquires all the rights and obligations under the loan agreement of the assigning lender. Assignments may, however, be arranged through private negotiations between potential assignees and potential assignors, and the rights and obligations acquired by the purchaser of an assignment may differ from, and be more limited than those held by the assigning lender.
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 investing in 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 with 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, 2012, no participation interest in Senior Loans was held by any of the Funds covered in this report.
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 to interest income.
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 pool of mortgages, mortgage pass-through 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 is no assurance that private guarantors or issuers will meet their obligations.
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.
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Payments received from IOs are recorded as interest income. 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. 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 recorded as interest income.
U.S. Government Agencies or Government-Sponsored Enterprises
Certain Funds may invest in U.S. Government agencies or government-sponsored enterprises. U.S. Government securities are obligations of and, in certain cases, guaranteed by, the U.S. Government, its agencies or instrumentalities. The U.S. Government does not guarantee the NAV of each Fund’s shares. Some U.S. Government securities, such as Treasury bills, notes and bonds, and securities guaranteed by GNMA (or “Ginnie Mae”), are supported by the full faith and credit of the United States Government; others, such as those of the Federal Home Loan Bank, are supported by the right of the issuer to borrow from the U.S. Department of the Treasury (the “U.S. Treasury”); others, such as those of the Federal National Mortgage Association (“FNMA” or “Fannie Mae”), are supported by the discretionary authority of the U. S. Government to purchase the agency’s obligations. Securities not backed by the full faith and credit of the United States Government may be subject to a greater risk of default. U.S. Government securities may include zero coupon securities, which do not distribute interest on a current basis and tend to be subject to greater risk than interest-paying securities of similar maturities.
Government-related guarantors (i.e., not backed by the full faith and credit of the United States Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). FNMA is a government-sponsored corporation, the common stock of which is owned entirely by private stockholders. FNMA purchases conventional (i.e., not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks and credit unions and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the United States Government. FHLMC issues Participation Certificates (“PCs”), which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit of the United States Government.
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 recorded as a liability.
The use of proceeds received from selling short to purchase additional securities (long positions), results in leverage which may increase a Fund’s exposure to long positions. Leverage could magnify gains and losses and, therefore, increases a Fund’s volatility.
Repurchase Agreements
Certain Funds may invest in repurchase agreements. Repurchase agreements permit the investor to maintain liquidity and earn income over periods of time as short as overnight. Repurchase agreements held by a Fund are fully collateralized by U.S. Government securities, or securities issued by U.S. Government agencies, or securities that are within the three highest credit categories assigned by established rating agencies (Aaa, Aa, or A by Moody’s or AAA, AA or A by Standard & Poor’s) or, if not rated by Moody’s or Standard & Poor’s, are of equivalent
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investment quality as determined by the 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 recorded as a liability. Interest payments made are recorded as a component of interest expense. 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 applicable Fund manager or otherwise cover its obligations under reverse repurchase agreements.
Sale-Buybacks
Certain Funds may enter into transactions referred to as sale-buybacks. A sale-buyback transaction consists of a sale of a security by a Fund to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed-upon price and date. Effective April 1, 2012 such transactions are recorded as secured borrowings; whereas, previously such transactions were recorded as purchases and sales. A Fund is not entitled to receive principal and interest payments, if any, made on the security sold to the counterparty during the term of the agreement. The agreed-upon proceeds for securities to be repurchased by a Fund are recorded as a liability. A Fund will recognize interest income represented by the price differential between the price received for the transferred security and the agreed-upon repurchase price. This is commonly referred to as the price drop. A price drop consists of (i) the foregone interest and inflationary income adjustments, if any, a Fund would have otherwise received had the security not been sold and (ii) the negotiated financing terms between the portfolio and counterparty. Foregone interest and inflationary income adjustments, if any, are recorded as components of interest income. Interest payments based upon negotiated financing terms made by the Fund to counterparties are recorded as a component of interest expense. 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 a Fund. A Fund will segregate assets determined to be liquid or otherwise cover its obligation under sale-buyback transactions.
Segregation and Collateral
If a Fund engages in certain transactions such as derivative investments or repurchase agreements, it may require collateral in the form of cash or investments to be held in segregated accounts at the Trust’s custodian, with an exchange or clearing member firm, or segregated on the Trust’s books and records maintained by the custodian and/or the portfolio manager. In each instance that segregation of collateral is required, it is done so in accordance with the 1940 Act and/or any interpretive guidance issued by the SEC. There is a possibility that a Fund could experience a delay in selling investments that are segregated as collateral.
5. DERIVATIVE INVESTMENTS AND RISKS
A. PRINCIPAL MARKET RISKS MANAGED BY INVESTING IN DERIVATIVES
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.
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
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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/or currencies.
Price volatility risk – Derivatives tied to equity and fixed income securities are exposed to potential price volatility. Fixed income securities are affected by many factors, including prevailing interest rates, market conditions and market liquidity. Volatility of below investment grade fixed income securities (including loans) may be relatively greater than for investment grade fixed income securities. Equity securities tend to go up or down in value, sometimes rapidly and unpredictably. The prices of equity securities change in response to many factors, including a company’s historical and prospective earnings, the value of its assets, general economic conditions, interest rates, investor perceptions and market liquidity. Due to the complexities of markets, events in one market or sector may adversely impact other markets or sectors.
To manage these risks, certain Funds may invest in various derivative instruments. Derivative instruments may be used to manage a Fund’s exposure to price volatility risk but may also be subject to greater price volatility than investments in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments.
Credit and Counterparty risk – Credit risk is the risk that a fixed income security’s issuer (or borrower or counterparty) will be unable or unwilling to meet its financial obligations (e.g., may not be able to make principal and/or interest payments when they are due or otherwise default on other financial terms) and/or may go bankrupt. This is also sometimes described as counterparty risk. A Fund may lose money if the issuer or guarantor of fixed income security, or counterparty of a derivative contract, repurchase or reverse repurchase agreement, or a loan of Fund securities, is unable or unwilling to make timely principal and/or interest payments, or to otherwise honor its obligations. A Fund may attempt to minimize concentrations of credit risk by undertaking transactions with a large number of borrowers or counterparties on recognized and reputable exchanges. A Fund’s investments in fixed income (debt) investments 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 will default. Financial assets of counterparties, which potentially expose a Fund to counterparty risk, consist 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 but 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 have a material adverse impact on 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.
B. DERIVATIVE INVESTMENTS
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, to gain exposure to specific investment opportunities, as a substitute for securities, to increase returns, or to otherwise help achieve a Fund’s investment goal. Each derivative instrument and the reasons a Fund invested in derivatives during the reporting period are discussed in further detail below.
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
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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.
During the reporting period, the Funds entered into futures contracts for the following reasons: The PL Inflation Managed and PL Managed Bond Funds used financial and money market futures as a means of managing exposure to the securities markets or to movements in interest rates. The PL Short Duration Bond Fund entered into treasury futures to manage exposure to changes in interest rates, and to manage duration. The PL International Value Fund entered into futures contracts to maintain full exposure to the equity markets.
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. On the other hand, 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. Inflation-capped options are options on U.S. inflation rates at a stated strike price. The seller of an inflation capped option receives an upfront premium and in return the buyer receives the right to receive a payment at the expiration of the option if the cumulative annualized inflation rate over the life of the option is above (for caps) or below (for floors) the stated strike price. The purpose of inflation-capped options is to protect the buyer from inflation erosion above a certain rate on a given notional exposure. A floor can be used to give downside protection to investments in inflation-linked products below a certain rate on a given notional exposure. 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, put, or inflation-capped option, an amount equal to the premium received or paid by the Fund is recorded 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 option contracts for the following reasons: The PL Inflation Managed and PL Managed Bond Funds wrote options and swaptions on futures and swaps, as a means of capitalizing on anticipated changes in market volatility and to generate income. The PL Inflation Managed Fund also purchased inflation floors as a means of hedging duration. The PL Growth LT Fund invested in option contracts for purposes of risk management and to increase returns.
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 Contracts for the following reasons: The PL Inflation Managed and PL Managed Bond Funds entered into Forward Contracts in connection with settling planned purchases or sales of securities, to hedge the currency exposure associated with some or all of a Fund’s securities or as part of each Funds’ investment strategy. The PL Emerging Markets Debt Fund entered into Forward Contracts to help protect the Fund’s returns against adverse currency movements, to gain market exposure, and as part of the Fund’s investment strategy. The PL Comstock Fund entered into Forward Contracts to manage currency risk and to help protect the Fund’s returns against adverse currency movements. The PL Growth LT Fund entered into Forward Contracts for hedging purposes to help protect the Fund’s returns against adverse currency movements. The PL International Value Fund entered into Forward Contracts to manage currency risk and for hedging purposes to insulate the Fund’s returns against adverse currency movements.
Swaps Agreements – Swaps are privately negotiated agreements between the Funds and their counterparties to exchange cash flows, assets, foreign currencies or market-linked returns at specified intervals and may be executed in the over-the-counter market or in a multilateral or other trade facility platform, such as a registered commodities exchange (“centrally cleared swaps”). 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. Market values greater than zero are recorded as an asset and market values less than zero are recorded as a liability. 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. Daily changes in valuation of centrally cleared swaps, if any, are recorded as variation margin receivable or payable. Payments received or made at the beginning of the measurement period are recorded as an asset or liability and represent payments made or received upon entering into the swap agreement to compensate for differences between the stated terms of the
C-10
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
swap agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). These upfront payments are recorded as the calculation of realized gain or loss when the swap is closed. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss. Net periodic payments received by a Fund are recorded as realized gain.
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 swaps 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, as well as other risk exposures in various global markets, or as a substitute for cash bond exposure. The PL Emerging Markets Debt Fund entered into interest rate swaps for duration management and to gain exposure to the currency markets.
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 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 writedowns or loss events on the underlying mortgage loans will reduce the outstanding principal balance of the referenced obligation. These reductions may be temporary or permanent as defined under the terms of the swap agreement and the notional amount for the swap agreement will be adjusted by corresponding amounts. A Fund may use credit default swaps on asset-backed securities to provide a measure of protection against defaults of the referenced obligation or to take an active long or short position with respect to the likelihood of a particular referenced obligation’s default.
C-11
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
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 agreements 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 swaps to achieve a similar effect.
An implied credit spread is the spread in yield between a U.S. Treasury security and the referenced obligation or underlying investment that are identical in all respects except for the quality rating. Wider credit spreads, 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. Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate 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.
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, 2012 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 swaps 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 markets through the use of credit default swaps. 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 the 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 investments held as of September 30, 2012 as disclosed in the Notes to Schedules of Investments and the amounts of realized gains and losses and changes in net unrealized appreciation and depreciation on derivative investments as disclosed in the Statements of Operations serve as indicators of the volume of derivative activity for each applicable Fund during the six-month period ended September 30, 2012.
C-12
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
The following is a summary of the location of fair value amounts of derivative investments, if any, disclosed in the Trust’s Statements of Assets and Liabilities:
Location on the Statements of Assets and Liabilities | ||||
Derivative Investments Risk 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 | |||
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 following is a summary of fair values of derivative investments disclosed in the Statements of Assets and Liabilities, which are not accounted for as hedging investments under U.S. GAAP, categorized by primary risk exposure as of September 30, 2012:
Asset Derivative Investments Value | ||||||||||||||||||||
Fund | Total Value at September 30, 2012 | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate | |||||||||||||||
PL Inflation Managed | $489,207 | $74,503 | $— | $95,220 | $319,484 | * | ||||||||||||||
PL Managed Bond | 1,912,242 | 1,277,487 | — | 320,897 | 313,858 | * | ||||||||||||||
PL Emerging Markets Debt | 210,959 | — | — | 209,312 | 1,647 | |||||||||||||||
PL Comstock | 89,288 | — | — | 89,288 | — | |||||||||||||||
PL Growth LT | 81,666 | — | 72,930 | 8,736 | — | |||||||||||||||
PL International Value | 504,886 | — | 7,627 | * | 497,259 | — |
Liability Derivative Investments Value | ||||||||||||||||||||
Fund | Total Value at September 30, 2012 | Credit Contracts | Equity Contracts | Foreign Exchange Contacts | Interest Rate Contracts | |||||||||||||||
PL Inflation Managed | ($732,586 | ) | ($1,251 | ) | $— | ($271,805 | ) | ($459,530 | ) | |||||||||||
PL Managed Bond | (1,855,757 | ) | (659,822 | ) | — | (797,995 | ) | (397,940 | )* | |||||||||||
PL Emerging Markets Debt | (110,014 | ) | — | — | (110,014 | ) | — | |||||||||||||
PL Growth LT | (42,928 | ) | — | (4,040 | ) | (38,888 | ) | — | ||||||||||||
PL International Value | (822,434 | ) | — | (49,820 | )* | (772,614 | ) | — |
* | Includes cumulative appreciation (depreciation) of futures contracts and centrally cleared swaps as reported in the Schedule of Investments and its notes. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
The following is a summary of the location of realized gains and losses and changes in net unrealized appreciation and depreciation of derivative investments, if any, disclosed in the Trust’s Statements of Operations:
Derivative Investments Risk 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 |
C-13
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
The following is a summary of each Fund’s realized gain and/or loss and change in net unrealized appreciation and/or depreciation on derivative investments recognized in the Statements of Operations categorized by primary risk exposure for the six-month period ended September 30, 2012:
Realized Gain (Loss) on Derivative Investments Recognized in the Statements of Operations | ||||||||||||||||||||
Fund | Total Value at September 30, 2012 | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | |||||||||||||||
PL Inflation Managed | $1,306,682 | ($506,173 | ) | $— | $970,393 | $842,462 | ||||||||||||||
PL Managed Bond | 1,543,633 | 198,135 | — | (1,001,334 | ) | 2,346,832 | ||||||||||||||
PL Short Duration Bond | 27,399 | — | — | (2,831 | ) | 30,230 | ||||||||||||||
PL Emerging Markets Debt | 13,900 | — | — | 6,927 | 6,973 | |||||||||||||||
PL Comstock | (519,266 | ) | — | — | (519,266 | ) | — | |||||||||||||
PL Growth LT | (59,442 | ) | — | (64,884 | ) | 5,442 | — | |||||||||||||
PL International Value | (168,603 | ) | — | (23,003 | ) | (145,600 | ) | — |
Change in Net Unrealized Appreciation (Depreciation) on Derivative Investments Recognized in the Statements of Operations | ||||||||||||||||||||
Fund | Total Value at September 30, 2012 | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contacts | |||||||||||||||
PL Inflation Managed | ($316,801 | ) | $69,312 | $— | ($12,088 | ) | ($374,025 | ) | ||||||||||||
PL Managed Bond | 358,466 | 497,265 | — | 862,884 | (1,001,683 | ) | ||||||||||||||
PL Short Duration Bond | 2,831 | — | — | 2,831 | — | |||||||||||||||
PL Emerging Markets Debt | 100,945 | — | — | 99,298 | 1,647 | |||||||||||||||
PL Comstock | 89,288 | — | — | 89,288 | — | |||||||||||||||
PL Growth LT | (120,906 | ) | — | (144,977 | ) | 24,071 | — | |||||||||||||
PL International Value | (132,678 | ) | — | (46,832 | ) | (85,846 | ) | — |
6. INVESTMENT ADVISORY, ADMINISTRATION AND SHAREHOLDER SERVICES, SUPPORT SERVICES AND DISTRIBUTION AGREEMENTS
Pursuant to an Investment Advisory Agreement, PLFA, a wholly-owned subsidiary of Pacific Life Insurance Company (“Pacific Life”), serves as investment adviser to the Trust. For the PL Underlying Funds, PLFA has retained other management firms to sub-advise each Fund, as discussed later in this section. PLFA receives advisory fees from each Fund based on the following advisory fee rates, which are based on an annual percentage of average daily net assets of each Fund:
PL Floating Rate Loan (1) | 0.75% | PL Growth LT | 0.55% | PL Small-Cap Growth | 0.60% | |||||
PL Inflation Managed | 0.40% | PL Large-Cap Growth (3) | 0.75% | PL Small-Cap Value | 0.75% | |||||
PL Managed Bond | 0.40% | PL Large-Cap Value | 0.65% | PL Real Estate | 0.90% | |||||
PL Short Duration Bond | 0.40% | PL Main Street Core | 0.45% | PL Emerging Markets | 0.80% | |||||
PL Emerging Markets Debt | 0.785% | PL Mid-Cap Equity | 0.65% | PL International Large-Cap | 0.85% | |||||
PL Comstock (2) | 0.75% | PL Mid-Cap Growth | 0.70% | PL International Value | 0.65% |
(1) | PLFA has contractually agreed to waive 0.10% of its advisory fees through June 30, 2013 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 0.015% of its advisory fees through June 30, 2013 as long as Invesco Advisers, Inc. remains manager of the Fund. There is no guarantee that PLFA will continue such waiver after that date. |
(3) | PLFA has contractually agreed to waive 0.025% of its advisory fees through June 30, 2013 as long as UBS Global Asset Management (Americas) Inc. remains manager of the Fund. There is no guarantee that PLFA will continue such waiver after that date. |
Pursuant to Fund Management Agreements, the Trust and PLFA engage various management firms under PLFA’s supervision for the PL Underlying Funds. As of September 30, 2012, 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; T. Rowe Price Associates, Inc. for the PL Short Duration Bond Fund; Ashmore Investment Management Limited for the PL Emerging Markets Debt 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 J.P. Morgan Investment Management Inc. 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 their sub-advisory services provided to their respective Fund.
Pursuant to an Administration and Shareholder Services Agreement (the “Administration Agreement”), Pacific Life serves as administrator (the “Administrator”) to the Trust. The Trust paid the Administrator an administration fee at an annual rate of 0.15% for each of the PL Underlying Funds.
C-14
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
The administration 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 Administration Agreement and Investment Advisory Agreement. 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 Pacific Life and PLFA (including individuals who may be officers or Trustees of the Trust), 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. Under the Distribution Agreement, 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 share class of the Funds covered in this report is not subject to a distribution and/or service fee.
7. TRANSACTIONS WITH AFFILIATES
A. ADVISORY FEES, ADMINISTRATION FEES AND EXPENSES FOR SUPPORT SERVICES
The Adviser and Pacific Life are related parties. The advisory fees paid to the Adviser, including any advisory fee waiver, the administration fees paid to Pacific Life, including any fee waivers, and expenses for support services paid to PLFA and Pacific Life (see Note 6) by each Fund covered in this report for the six-month period ended September 30, 2012 are presented in the Statements of Operations. The amounts of each of these fees that remained payable as of September 30, 2012 are presented in the Statements of Assets and Liabilities.
B. EXPENSE LIMITATION AGREEMENTS
To help limit the Trust’s expenses, PLFA has entered into expense limitation agreements with the Trust and has contractually agreed to reimburse each Fund for certain operating expenses that exceed an annual rate based on a percentage of a Fund’s average daily net assets. These operating expenses include, but are not limited to, administration fees, organizational expenses, custody expenses, expenses for audit, tax and certain legal services, preparation, printing, filing and distribution to existing shareholders of proxies, prospectuses and shareholder reports and other regulatory documents as applicable, independent trustees’ fees, and establishing, overseeing and administering the Trust’s compliance program. These operating expenses do not include investment advisory fees; distribution and/or service fees, if any; interest; taxes (including foreign taxes on dividends, interest or gains); brokerage commissions and other transactional expenses; dividends on securities sold short; acquired fund fees and expenses; and extraordinary expenses such as litigation expenses and other expenses not incurred in the ordinary course of each Fund’s business. The current expense cap for the PL Underlying Funds is 0.15% through June 30, 2015 and 0.30% thereafter through June 30, 2022.
There is no guarantee that PLFA will continue to cap expenses upon the expiration of the applicable expense caps. Any expense reimbursements are subject to repayment to PLFA for a period of time as permitted under regulatory and 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. There was no recoupment of expense reimbursement by PLFA from any Funds covered in this report during the six-month period ended September 30, 2012.
The cumulative reimbursement and fee reduction amounts, if any, as of September 30, 2012 that are subject to repayment for each Fund covered in this report are as follows:
Expiration Date | ||||||||||||||||
Fund | 3/31/2013 | 3/31/2014 | 3/31/2015 | 3/31/2016 | ||||||||||||
PL Floating Rate Loan | $98,235 | $161,181 | $131,663 | $66,315 | ||||||||||||
PL Inflation Managed | 308,763 | 329,563 | 295,942 | 138,790 | ||||||||||||
PL Managed Bond | 502,729 | 558,213 | 506,074 | 240,184 | ||||||||||||
PL Short Duration Bond | 164,724 | 164,455 | 168,516 | 82,016 | ||||||||||||
PL Emerging Markets Debt | 90,353 | |||||||||||||||
PL Comstock | 214,415 | 194,706 | 167,205 | 81,982 | ||||||||||||
PL Growth LT | 216,805 | 154,975 | 163,768 | 68,140 | ||||||||||||
PL Large-Cap Growth | 120,503 | 112,128 | 106,391 | 52,932 | ||||||||||||
PL Large-Cap Value | 216,004 | 228,247 | 206,530 | 102,568 | ||||||||||||
PL Main Street Core | 266,417 | 176,595 | 160,866 | 77,863 | ||||||||||||
PL Mid-Cap Equity | 177,580 | 153,964 | 136,380 | 70,418 | ||||||||||||
PL Mid-Cap Growth | 115,208 | 116,589 | 83,455 | 37,436 | ||||||||||||
PL Small-Cap Growth | 96,729 | 73,729 | 59,708 | 29,140 | ||||||||||||
PL Small-Cap Value | 92,384 | 92,291 | 93,513 | 44,023 | ||||||||||||
PL Real Estate | 94,439 | 72,505 | 59,572 | 27,388 | ||||||||||||
PL Emerging Markets | 319,937 | 270,343 | 388,707 | 181,806 | ||||||||||||
PL International Large-Cap | 286,639 | 255,021 | 289,591 | 121,094 | ||||||||||||
PL International Value | 289,342 | 200,306 | 213,243 | 84,396 | ||||||||||||
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Total | $3,580,853 | $3,314,811 | $3,231,124 | $1,596,844 | ||||||||||||
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|
|
Due to the current regulatory and accounting guidance, all expense reimbursements made by the Adviser for the period September 28, 2001 (the Pacific Life Funds’ commencement date of operations) to March 31, 2009 expired for future recoupment as of March 31, 2012. 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
C-15
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
and no liabilities for such repayments were recorded by any Fund as of September 30, 2012. The Adviser expense reimbursement is presented in the Statements of Operations. Any amounts that remained due from the Advisor as of September 30, 2012 are presented in the Statements of Assets and Liabilities.
C. INDEPENDENT TRUSTEES
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. The fees and expenses of the independent trustees of the Board are presented in the Statements of Operations.
Each independent trustee of the Board is eligible to participate in the Trust’s Deferred Compensation Plan (the “Plan”). The 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 each Fund at the time of such deferral and are payable in accordance with the 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, at NAV of Class A shares of the corresponding Portfolio Optimization Funds, PL Short Duration Income Fund, PL Income Fund, PL Strategic Income Fund, PL Floating Rate Income Fund, PL High Income Fund and/or PL Money Market Fund, and/or Class P shares of the corresponding PL Underlying Funds without a sales load. The obligation of each Fund under the Plan (the “DCP Liability”) is recorded as a liability (accrued trustees’ fees and expenses and deferred compensation). Accordingly, the market value appreciation or depreciation on a Fund’s DCP Liability account will cause the expenses of that Fund to increase or decrease due to market fluctuation. The change in net unrealized appreciation or depreciation on a Fund’s DCP Liability account is recorded as an increase or decrease to expense (trustees’ fees and expenses). For the six-month period ended September 30, 2012, such expenses decreased by $259 for all applicable Funds covered in this report as a result of the market value depreciation on such accounts. As of September 30, 2012, the total amount in the DCP Liability accounts was $32,643 for all applicable Funds covered in this report.
D. OFFICERS OF THE TRUST
None of the officers of the Trust received compensation from the Trust.
E. 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.
8. UNFUNDED SENIOR LOAN COMMITMENTS
Unfunded loan commitments on senior loan participations and assignments (Note 4), 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 is recorded as an asset (unfunded loan commitment appreciation) or a liability (unfunded loan commitment depreciation) and any change in net unrealized appreciation or depreciation for the reporting period is recorded as a change in net unrealized appreciation or depreciation on unfunded loan commitment. As of September 30, 2012, no unfunded loan commitments were held by any Funds covered in this report.
9. PURCHASES AND SALES OF SECURITIES
The cost of purchases and proceeds from sales of investments (excluding short-term investments) for the six-month period ended September 30, 2012, were as follows:
U.S. Government Securities | Other Securities | |||||||||||||||
Fund | Purchases | Sales | Purchases | Sales | ||||||||||||
PL Floating Rate Loan | $— | $— | $27,703,003 | $41,550,478 | ||||||||||||
PL Inflation Managed | 228,229,328 | 327,769,950 | 1,011,912 | 46,265,050 | ||||||||||||
PL Managed Bond | 2,004,238,788 | 1,923,085,696 | 67,899,710 | 40,696,066 | ||||||||||||
PL Short Duration Bond | 48,900,556 | 34,186,317 | 77,201,310 | 24,268,701 | ||||||||||||
PL Emerging Markets Debt | — | — | 84,740,175 | 6,982,124 | ||||||||||||
PL Comstock | — | — | 69,887,958 | 24,281,584 | ||||||||||||
PL Growth LT | — | — | 24,512,496 | 83,668,584 | ||||||||||||
PL Large-Cap Growth | — | — | 50,081,051 | 46,434,283 | ||||||||||||
PL Large-Cap Value | — | — | 69,300,116 | 18,692,871 | ||||||||||||
PL Main Street Core | — | — | 69,180,001 | 50,500,468 | ||||||||||||
PL Mid-Cap Equity | — | — | 68,461,899 | 91,808,129 | ||||||||||||
PL Mid-Cap Growth | — | — | 10,000,815 | 17,992,293 | ||||||||||||
PL Small-Cap Growth | — | — | 24,207,157 | 16,831,176 | ||||||||||||
PL Small-Cap Value | — | — | 42,210,248 | 21,696,062 | ||||||||||||
PL Real Estate | — | — | 5,780,700 | 4,877,054 | ||||||||||||
PL Emerging Markets | — | — | 29,079,423 | 9,754,989 | ||||||||||||
PL International Large-Cap | — | — | 41,058,593 | 23,211,884 | ||||||||||||
PL International Value | — | — | 72,854,499 | 31,789,918 |
C-16
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
10. FEDERAL INCOME TAX INFORMATION
Each Fund intends to qualify each year as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code (the “Code”). A Fund that qualifies as a RIC does not have to pay income tax as long as it distributes sufficient taxable income and net capital gains. Each Fund declared and paid sufficient dividends on net investment income and capital gains distributions during the year or period ended March 31, 2012, to qualify as a RIC and is not required to pay Federal income tax under the 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 in accordance with income tax regulations, which may differ from such amounts for financial reporting purposes. These differences are primarily due to differing treatments for futures and options, swap income, paydown gain/loss, partnership income, foreign currency transactions, passive foreign investment companies, late year ordinary and post-October capital 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 capital accounts. 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.
The following table shows the accumulated capital losses and components of distributable earnings on a tax basis, and late year ordinary losses and post-October capital losses deferred, if any, as of March 31, 2012:
Distributable Earnings | Late Year Ordinary and Post-October Capital Loss Deferrals | |||||||||||||||||||||||||||||
Fund | Accumulated Capital | Undistributed Ordinary Income | Undistributed Long-Term Capital Gains | Late Year Ordinary Losses | Short-Term Capital Losses | Long-Term Capital Losses | Total | |||||||||||||||||||||||
PL Floating Rate Loan | ($16,487 | ) | $1,198,457 | $— | $— | $— | $— | $— | ||||||||||||||||||||||
PL Inflation Managed | — | 2,841,061 | 733,035 | — | — | — | — | |||||||||||||||||||||||
PL Managed Bond | (216,538 | ) | 5,074,047 | — | — | — | (3,280,889 | ) | (3,280,889 | ) | ||||||||||||||||||||
PL Short Duration Bond | — | 481,115 | 46,127 | — | (207,126 | ) | — | (207,126 | ) | |||||||||||||||||||||
PL Comstock | (22,005,888 | ) | 676,793 | — | — | — | — | — | ||||||||||||||||||||||
PL Growth LT | (18,416,497 | ) | 549,611 | — | — | (1,698,768 | ) | — | (1,698,768 | ) | ||||||||||||||||||||
PL Large-Cap Growth | — | — | 1,019,041 | (100,504 | ) | — | — | (100,504 | ) | |||||||||||||||||||||
PL Large-Cap Value | (15,679,047 | ) | 1,183,317 | — | — | (602,951 | ) | — | (602,951 | ) | ||||||||||||||||||||
PL Main Street Core | (26,543,145 | ) | 739,538 | — | — | (362,630 | ) | — | (362,630 | ) | ||||||||||||||||||||
PL Mid-Cap Equity | (7,425,609 | ) | 187,850 | — | — | — | — | — | ||||||||||||||||||||||
PL Mid-Cap Growth | — | — | 1,054,638 | (17,119 | ) | (100,750 | ) | — | (117,869 | ) | ||||||||||||||||||||
PL Small-Cap Growth | (5,887,020 | ) | — | — | — | — | — | — | ||||||||||||||||||||||
PL Small-Cap Value | (5,895,087 | ) | 324,995 | — | — | (95,549 | ) | — | (95,549 | ) | ||||||||||||||||||||
PL Real Estate | (8,860,152 | ) | 195,287 | — | — | (47,531 | ) | — | (47,531 | ) | ||||||||||||||||||||
PL Emerging Markets | — | 168,621 | — | — | (1,022,619 | ) | (266,107 | ) | (1,288,726 | ) | ||||||||||||||||||||
PL International Large-Cap | (12,478,029 | ) | 1,308,918 | — | — | (691,996 | ) | (775,436 | ) | (1,467,432 | ) | |||||||||||||||||||
PL International Value | (49,011,024 | ) | 906,833 | — | — | (3,629,237 | ) | (1,471,976 | ) | (5,101,213 | ) |
Accumulated capital losses represent net capital loss carryovers as of March 31, 2012 that may be available to offset future realized capital gains and thereby reduce future capital gains distributions. Under the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”), each Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. Any losses incurred during those future taxable years will be required to be utilized prior to any losses incurred in pre-enactment taxable years. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under the previous law. Each Fund’s first fiscal year end subject to the Modernization Act is March 31, 2012. The following table shows the expiration dates for capital loss carryover from pre-enactment taxable years and the amounts of capital loss carryover, if any, by each of the applicable Funds as of March 31, 2012:
Pre-Enactment | Post-Enactment | |||||||||||||||||||||||||
Net Capital Loss Carryover Expiring in | Unlimited Period of Net Capital Loss Carryover | Accumulated Carryover | ||||||||||||||||||||||||
Fund | 2017 | 2018 | 2019 | Short-Term | Long-Term | |||||||||||||||||||||
PL Floating Rate Loan | $— | ($16,487 | ) | $— | $— | $— | ($16,487 | ) | ||||||||||||||||||
PL Managed Bond | — | — | — | (216,538 | ) | — | (216,538 | ) | ||||||||||||||||||
PL Comstock | (1,791,441 | ) | (20,214,447 | ) | — | — | — | (22,005,888 | ) | |||||||||||||||||
PL Growth LT | — | (18,416,497 | ) | — | — | — | (18,416,497 | ) | ||||||||||||||||||
PL Large-Cap Value | (4,851,176 | ) | (10,501,973 | ) | (325,898 | ) | — | — | (15,679,047 | ) | ||||||||||||||||
PL Main Street Core | (2,767,952 | ) | (23,775,193 | ) | — | — | — | (26,543,145 | ) | |||||||||||||||||
PL Mid-Cap Equity | — | (7,425,609 | ) | — | — | — | (7,425,609 | ) | ||||||||||||||||||
PL Small-Cap Growth | (3,377 | ) | (5,883,643 | ) | — | — | — | (5,887,020 | ) | |||||||||||||||||
PL Small-Cap Value | — | (5,895,087 | ) | — | — | — | (5,895,087 | ) | ||||||||||||||||||
PL Real Estate | — | (8,860,152 | ) | — | — | — | (8,860,152 | ) | ||||||||||||||||||
PL International Large-Cap | (1,530,732 | ) | (8,295,134 | ) | (2,652,163 | ) | — | — | (12,478,029 | ) | ||||||||||||||||
PL International Value | (6,971,246 | ) | (38,541,418 | ) | — | (3,027,169 | ) | (471,191 | ) | (49,011,024 | ) |
C-17
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
The aggregate Federal tax cost of investments and the composition of unrealized appreciation and depreciation on investments as of September 30, 2012, were as follows:
Fund | Total Cost of Investments on Tax Basis | Gross Unrealized Appreciation on Investments | Gross Unrealized Depreciation on Investments | Net Unrealized Appreciation on Investments | Net Unrealized Appreciation (Depreciation) on Other (1) | Net Unrealized Appreciation | ||||||||||||||||||
PL Floating Rate Loan | $99,082,884 | $1,470,239 | ($383,760 | ) | $1,086,479 | $— | $1,086,479 | |||||||||||||||||
PL Inflation Managed | 188,477,132 | 9,422,753 | (770,560 | ) | 8,652,193 | (227,375 | ) | 8,424,818 | ||||||||||||||||
PL Managed Bond | 744,294,045 | 21,439,287 | (3,385,017 | ) | 18,054,270 | (285,837 | ) | 17,768,433 | ||||||||||||||||
PL Short Duration Bond | 223,329,994 | 2,630,662 | (125,281 | ) | 2,505,381 | — | 2,505,381 | |||||||||||||||||
PL Emerging Markets Debt | 82,212,646 | 3,770,370 | (295,842 | ) | 3,474,528 | 98,134 | 3,572,662 | |||||||||||||||||
PL Comstock | 231,856,603 | 43,862,295 | (10,127,414 | ) | 33,734,881 | 91,683 | 33,826,564 | |||||||||||||||||
PL Growth LT | 31,437,584 | 10,280,222 | (632,920 | ) | 9,647,302 | (29,392 | ) | 9,617,910 | ||||||||||||||||
PL Large-Cap Growth | 102,856,631 | 33,067,705 | (2,500,967 | ) | 30,566,738 | — | 30,566,738 | |||||||||||||||||
PL Large-Cap Value | 265,154,425 | 70,517,423 | (6,082,675 | ) | 64,434,748 | — | 64,434,748 | |||||||||||||||||
PL Main Street Core | 171,623,611 | 45,448,900 | (2,674,602 | ) | 42,774,298 | 54 | 42,774,352 | |||||||||||||||||
PL Mid-Cap Equity | 119,690,600 | 13,491,390 | (3,253,379 | ) | 10,238,011 | — | 10,238,011 | |||||||||||||||||
PL Mid-Cap Growth | 54,885,005 | 13,071,487 | (5,657,731 | ) | 7,413,756 | (360 | ) | 7,413,396 | ||||||||||||||||
PL Small-Cap Growth | 36,707,605 | 7,740,840 | (1,124,141 | ) | 6,616,699 | — | 6,616,699 | |||||||||||||||||
PL Small-Cap Value | 92,631,371 | 17,826,648 | (2,214,434 | ) | 15,612,214 | (54 | ) | 15,612,160 | ||||||||||||||||
PL Real Estate | 35,968,027 | 17,681,046 | (455,591 | ) | 17,225,455 | — | 17,225,455 | |||||||||||||||||
PL Emerging Markets | 87,624,436 | 22,060,593 | (3,405,692 | ) | 18,654,901 | (66,147 | ) | 18,588,754 | ||||||||||||||||
PL International Large-Cap | 189,397,293 | 34,436,631 | (5,512,968 | ) | 28,923,663 | (3,639 | ) | 28,920,024 | ||||||||||||||||
PL International Value | 142,604,532 | 11,366,706 | (4,563,909 | ) | 6,802,797 | (323,220 | ) | 6,479,577 |
(1) | Other includes net appreciation or deprecation on derivatives, securities sold short, unfunded loan commitments, and foreign currency transactions, if any. |
Each Fund recognizes the financial statement effects of a tax position taken or expected to be taken in a tax return when it is more likely than not, based on the technical merits, that the position will be sustained upon examination by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax liability for unrecognized tax benefits with a corresponding income tax expense. Each Fund is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions. As a result of each Fund’s evaluation, as of and during the six-month period ended September 30, 2012, each Fund did not record a liability for any unrecognized tax benefits. Each Fund’s policy is to recognize interest and penalties on unrecognized tax benefits in income tax expense. During the six-month period ended September 30, 2012, none of the Funds covered in this report incurred any interest or penalties. Each Fund is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next six months.
Each Fund remains subject to examination by Federal and State tax authorities (principal state jurisdictions include California and Delaware) for the tax years ended March 31, 2009 through March 31, 2012 for Federal purposes and March 31, 2008 through March 31, 2012 for State purposes.
11. TAX CHARACTER OF DISTRIBUTIONS
The tax character of income and capital gain distributions to shareholders during the year ended March 31, 2012, were as follows:
For the Year Ended March 31, 2012 | ||||||||||||
Fund | Ordinary Income | Long-Term Capital Gains | Total Distributions | |||||||||
PL Floating Rate Loan | $3,822,618 | $— | $3,822,618 | |||||||||
PL Inflation Managed | 16,846,737 | 3,055,973 | 19,902,710 | |||||||||
PL Managed Bond | 11,687,819 | — | 11,687,819 | |||||||||
PL Short Duration Bond | 1,583,339 | 194,538 | 1,777,877 | |||||||||
PL Comstock | 2,469,410 | — | 2,469,410 | |||||||||
PL Growth LT | 536,165 | — | 536,165 | |||||||||
PL Large-Cap Growth | — | 1,890,797 | 1,890,797 | |||||||||
PL Large-Cap Value | 4,290,204 | — | 4,290,204 | |||||||||
PL Main Street Core | 1,459,944 | — | 1,459,944 | |||||||||
PL Mid-Cap Equity | 669,458 | — | 669,458 | |||||||||
PL Mid-Cap Growth | 510,818 | 7,026,231 | 7,537,049 | |||||||||
PL Small-Cap Value | 1,046,454 | — | 1,046,454 | |||||||||
PL Real Estate | 324,119 | — | 324,119 | |||||||||
PL Emerging Markets | 436,893 | 1,469,566 | 1,906,459 | |||||||||
PL International Large-Cap | 2,241,781 | — | 2,241,781 | |||||||||
PL International Value | 3,217,735 | — | 3,217,735 |
There were no income and capital gain distributions to shareholders by any of the Funds covered in this report during the six-month period ended September 30, 2012.
C-18
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
12. SHARES OF BENEFICIAL INTEREST
Each Fund is authorized to issue an unlimited number of shares of beneficial interest with no par value. Changes in shares of beneficial interest of each Fund for the six-month period ended September 30, 2012 and the year ended March 31, 2012 were as follows:
PL Floating Rate Loan Fund | PL Inflation Managed Fund | PL Managed Bond Fund | PL Short Duration Bond Fund | |||||||||||||||||||||||||||||||||||
Six-Month Period ended 9/30/2012 | Year ended 3/31/2012 | Six-Month Period ended 9/30/2012 | Year ended 3/31/2012 | Six-Month Period ended 9/30/2012 | Year ended 3/31/2012 | Six-Month Period ended 9/30/2012 | Year ended 3/31/2012 | |||||||||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||||||||
Shares sold | 1,036,901 | 2,778,851 | 2,313,987 | 5,832,301 | 6,492,319 | 11,330,537 | 6,920,201 | 4,052,837 | ||||||||||||||||||||||||||||||
Dividends and distributions reinvested | — | 391,261 | — | 1,868,799 | — | 1,103,666 | — | 178,681 | ||||||||||||||||||||||||||||||
Shares repurchased | (2,551,858 | ) | (570,742 | ) | (13,528,398 | ) | (2,797,468 | ) | (1,624,311 | ) | (2,937,545 | ) | (153,048 | ) | (872,644 | ) | ||||||||||||||||||||||
Net increase (decrease) | (1,514,957 | ) | 2,599,370 | (11,214,411 | ) | 4,903,632 | 4,868,008 | 9,496,658 | 6,767,153 | 3,358,874 | ||||||||||||||||||||||||||||
Beginning shares outstanding | 11,099,697 | 8,500,327 | 26,682,305 | 21,778,673 | 44,758,849 | 35,262,191 | 15,429,941 | 12,071,067 | ||||||||||||||||||||||||||||||
Ending shares outstanding | 9,584,740 | 11,099,697 | 15,467,894 | 26,682,305 | 49,626,857 | 44,758,849 | 22,197,094 | 15,429,941 | ||||||||||||||||||||||||||||||
PL Emerging Markets Debt Fund (1) | PL Comstock Fund | PL Growth LT Fund | PL Large-Cap Growth Fund | |||||||||||||||||||||||||||||||||||
Period ended 9/30/2012 | Year ended 3/31/2012 | Six-Month Period ended 9/30/2012 | Year ended 3/31/2012 | Six-Month Period ended 9/30/2012 | Year ended 3/31/2012 | Six-Month Period ended 9/30/2012 | Year ended 3/31/2012 | |||||||||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||||||||
Shares sold | 8,132,967 | 4,367,575 | 3,553,403 | 134,271 | 1,423,438 | 858,644 | 2,164,349 | |||||||||||||||||||||||||||||||
Dividends and distributions reinvested | — | — | 225,311 | — | 47,701 | — | 220,116 | |||||||||||||||||||||||||||||||
Shares repurchased | (46,162 | ) | (231,442 | ) | (880,653 | ) | (5,292,318 | ) | (2,515,096 | ) | (239,655 | ) | (573,437 | ) | ||||||||||||||||||||||||
Net increase (decrease) | 8,086,805 | 4,136,133 | 2,898,061 | (5,158,047 | ) | (1,043,957 | ) | 618,989 | 1,811,028 | |||||||||||||||||||||||||||||
Beginning shares outstanding | — | 16,625,565 | 13,727,504 | 8,258,220 | 9,302,177 | 12,546,730 | 10,735,702 | |||||||||||||||||||||||||||||||
Ending shares outstanding | 8,086,805 | 20,761,698 | 16,625,565 | 3,100,173 | 8,258,220 | 13,165,719 | 12,546,730 | |||||||||||||||||||||||||||||||
PL Large-Cap Value Fund | PL Main Street Core Fund | PL Mid-Cap Equity Fund | PL Mid-Cap Growth Fund | |||||||||||||||||||||||||||||||||||
Six-Month Period ended 9/30/2012 | Year ended 3/31/2012 | Six-Month Period ended 9/30/2012 | Year ended 3/31/2012 | Six-Month Period ended 9/30/2012 | Year ended 3/31/2012 | Six-Month Period ended 9/30/2012 | Year ended 3/31/2012 | |||||||||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||||||||
Shares sold | 4,991,418 | 3,684,819 | 1,877,485 | 2,375,126 | 1,127,461 | 3,794,349 | 1,389,263 | 1,280,313 | ||||||||||||||||||||||||||||||
Dividends and distributions reinvested | — | 390,728 | — | 150,046 | — | 72,609 | — | 994,334 | ||||||||||||||||||||||||||||||
Shares repurchased | (523,034 | ) | (2,423,173 | ) | (373,434 | ) | (929,081 | ) | (4,062,991 | ) | (806,734 | ) | (1,998,513 | ) | (250,642 | ) | ||||||||||||||||||||||
Net increase (decrease) | 4,468,384 | 1,652,374 | 1,504,051 | 1,596,091 | (2,935,530 | ) | 3,060,224 | (609,250 | ) | 2,024,005 | ||||||||||||||||||||||||||||
Beginning shares outstanding | 21,364,475 | 19,712,101 | 17,182,131 | 15,586,040 | 16,044,803 | 12,984,579 | 8,294,116 | 6,270,111 | ||||||||||||||||||||||||||||||
Ending shares outstanding | 25,832,859 | 21,364,475 | 18,686,182 | 17,182,131 | 13,109,273 | 16,044,803 | 7,684,866 | 8,294,116 | ||||||||||||||||||||||||||||||
PL Small-Cap Growth Fund | PL Small-Cap Value Fund | PL Real Estate Fund | PL Emerging Markets Fund | |||||||||||||||||||||||||||||||||||
Six-Month Period ended 9/30/2012 | Year ended 3/31/2012 | Six-Month Period ended 9/30/2012 | Year ended 3/31/2012 | Six-Month Period ended 9/30/2012 | Year ended 3/31/2012 | Six-Month Period ended 9/30/2012 | Year ended 3/31/2012 | |||||||||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||||||||
Shares sold | 865,238 | 603,780 | 2,133,777 | 1,315,442 | 56,980 | 1,025,141 | 1,576,691 | 2,024,174 | ||||||||||||||||||||||||||||||
Dividends and distributions reinvested | — | — | — | 106,890 | — | 28,862 | — | 162,945 | ||||||||||||||||||||||||||||||
Shares repurchased | (208,625 | ) | (257,367 | ) | (138,570 | ) | (468,973 | ) | (101,604 | ) | (523,132 | ) | (87,918 | ) | (257,654 | ) | ||||||||||||||||||||||
Net increase (decrease) | 656,613 | 346,413 | 1,995,207 | 953,359 | (44,624 | ) | 530,871 | 1,488,773 | 1,929,465 | |||||||||||||||||||||||||||||
Beginning shares outstanding | 3,065,762 | 2,719,349 | 8,143,437 | 7,190,078 | 4,183,542 | 3,652,671 | 6,308,071 | 4,378,606 | ||||||||||||||||||||||||||||||
Ending shares outstanding | 3,722,375 | 3,065,762 | 10,138,644 | 8,143,437 | 4,138,918 | 4,183,542 | 7,796,844 | 6,308,071 | ||||||||||||||||||||||||||||||
PL International Large-Cap Fund | PL International Value Fund | |||||||||||||||||||||||||||||||||||||
Six-Month Period ended 9/30/2012 | Year ended 3/31/2012 | Six-Month Period ended 9/30/2012 | Year ended 3/31/2012 | |||||||||||||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||||||||
Shares sold | 1,302,492 | 5,074,872 | 5,420,688 | 3,744,103 | ||||||||||||||||||||||||||||||||||
Dividends and distributions reinvested | — | 172,048 | — | 424,503 | ||||||||||||||||||||||||||||||||||
Shares repurchased | (160,567 | ) | (739,664 | ) | (239,844 | ) | (768,129 | ) | ||||||||||||||||||||||||||||||
Net increase | 1,141,925 | 4,507,256 | 5,180,844 | 3,400,477 | ||||||||||||||||||||||||||||||||||
Beginning shares outstanding | 13,486,118 | 8,978,862 | 12,892,042 | 9,491,565 | ||||||||||||||||||||||||||||||||||
Ending shares outstanding | 14,628,043 | 13,486,118 | 18,072,886 | 12,892,042 |
(1) | The PL Emerging Markets Debt Fund commenced operations on June 29, 2012. |
C-19
PACIFIC LIFE FUNDS
(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 ongoing costs, which include advisory fees, administration 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, 2012 to September 30, 2012.
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 advisory fee waivers and adviser expense reimbursements (See Notes 6 and 7B in Notes to Financial Statements). The “Ending Account Value at 09/30/12” 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 04/01/12-09/30/12” 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, 2012 to September 30, 2012.
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 04/01/12-09/30/12.”
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 advisory fee waivers and adviser expense reimbursements (See Note 6 and 7B in Notes to Financial Statements). 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.
Beginning Account Value at 04/01/12 | Ending Account Value at 09/30/12 | Annualized Expense Ratio | Expenses 04/01/12 - | |||||||||||||
PL Floating Rate Loan Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $1,028.70 | 0.80% | $4.07 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class P | $1,000.00 | $1,021.06 | 0.80% | $4.05 | ||||||||||||
PL Inflation Managed Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $1,061.20 | 0.57% | $2.95 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class P | $1,000.00 | $1,022.21 | 0.57% | $2.89 | ||||||||||||
PL Managed Bond Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $1,052.40 | 0.55% | $2.83 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class P | $1,000.00 | $1,022.31 | 0.55% | $2.79 | ||||||||||||
PL Short Duration Bond Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $1,014.90 | 0.55% | $2.78 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class P | $1,000.00 | $1,022.31 | 0.55% | $2.79 | ||||||||||||
PL Emerging Markets Debt Fund (2) | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $1,060.00 | 0.94% | $2.49 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class P | $1,000.00 | $1,020.36 | 0.94% | $4.76 | ||||||||||||
PL Comstock Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $1,024.90 | 0.89% | $4.52 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class P | $1,000.00 | $1,020.61 | 0.89% | $4.51 | ||||||||||||
PL Growth LT Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $1,003.10 | 0.70% | $3.52 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class P | $1,000.00 | $1,021.56 | 0.70% | $3.55 | ||||||||||||
PL Large-Cap Growth Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $999.00 | 0.88% | $4.41 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class P | $1,000.00 | $1,020.66 | 0.88% | $4.46 | ||||||||||||
PL Large-Cap Value Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $1,038.20 | 0.80% | $4.09 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class P | $1,000.00 | $1,021.06 | 0.80% | $4.05 |
See explanation of references on page D-2 |
D-1
PACIFIC LIFE FUNDS
DISCLOSURE OF FUND EXPENSES (Continued)
(Unaudited)
Beginning Account Value at 04/01/12 | Ending Account Value at 09/30/12 | Annualized Expense Ratio | Expenses 04/01/12 - | |||||||||||||
PL Main Street Core Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $1,018.70 | 0.60% | $3.04 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class P | $1,000.00 | $1,022.06 | 0.60% | $3.04 | ||||||||||||
PL Mid-Cap Equity Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $952.40 | 0.80% | $3.92 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class P | $1,000.00 | $1,021.06 | 0.80% | $4.05 | ||||||||||||
PL Mid-Cap Growth Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $909.80 | 0.85% | $4.07 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class P | $1,000.00 | $1,020.81 | 0.85% | $4.31 | ||||||||||||
PL Small-Cap Growth Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $993.20 | 0.75% | $3.75 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class P | $1,000.00 | $1,021.31 | 0.75% | $3.80 | ||||||||||||
PL Small-Cap Value Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $1,006.60 | 0.90% | $4.53 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class P | $1,000.00 | $1,020.56 | 0.90% | $4.56 | ||||||||||||
PL Real Estate Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $1,023.00 | 1.05% | $5.32 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class P | $1,000.00 | $1,019.80 | 1.05% | $5.32 | ||||||||||||
PL Emerging Markets Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $1,006.70 | 0.95% | $4.78 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class P | $1,000.00 | $1,020.31 | 0.95% | $4.81 | ||||||||||||
PL International Large-Cap Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $991.40 | 1.00% | $4.99 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class P | $1,000.00 | $1,020.05 | 1.00% | $5.06 |
Beginning Account Value at 04/01/12 | Ending Account Value at 09/30/12 | Annualized Expense Ratio | Expenses 04/01/12 - | |||||||||||||
PL International Value Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $974.50 | 0.80% | $3.96 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class P | $1,000.00 | $1,021.06 | 0.80% | $4.05 |
(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 or applicable period, then divided by 365 days. |
(2) | The PL Emerging Markets Debt Fund commenced operations on June 29, 2012. The actual return and expenses paid during the period by this Fund was for the period June 29, 2012 to September 30, 2012, instead of the entire six-month period. The hypothetical return and expenses paid during the period are based on the entire six-month period for comparison purposes. |
D-2
PACIFIC LIFE FUNDS
APPROVAL OF INVESTMENT ADVISORY AGREEMENT AND FUND MANAGEMENT AGREEMENTS
(Unaudited)
I. Introduction and Background
The Pacific Life Funds’ (the “Trust”) Board of Trustees (the “Board” or “Trustees”) approved a change in fund manager and a new fund management agreement with respect to the PL Mid-Cap Equity Fund (the “Fund”) effective January 1, 2013. Under the Investment Company Act of 1940, as amended (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 (“Pacific Life”) by the Securities and Exchange Commission (“SEC”) on October 13, 1999 and relied upon by the Trust and Pacific Life Fund Advisors LLC (“PLFA” or “Adviser”), 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. The additional information provided herein concerning the fund manager change is being provided pursuant to the requirements of the exemptive order.
At an in-person meeting on September 11, 2012, the Board, including all of the Trustees who are not “interested persons,” as that term is defined in the 1940 Act (“Independent Trustees”), approved, effective January 1, 2013, the agreement with Scout Investments, Inc. (“Scout”) with respect to the PL Mid-Cap Equity Fund (the “Scout Fund Management Agreement”) and appointed Scout as the new fund manager, effective January 1, 2013 (“Fund Manager”). In connection with this matter, also at the September 11, 2012 meeting, the Board terminated the fund management agreement for the Fund with the current fund manager upon the effectiveness of the Scout Fund Management Agreement. Scout’s appointment as Fund Manager was made in accordance with the SEC exemptive order noted above and does not require shareholder approval. In order to facilitate these changes, a portion of the fund’s holdings will be sold and new investments purchased in accordance with recommendations by the new fund manager or management team. PLFA and/or the Fund may retain a transitioning agent in order to help reduce the transaction costs associated with the purchase and sale of Fund holdings in connection with this transition.
II. Board Consideration of the New Fund Management Agreement
In evaluating the proposed Scout Fund Management Agreement, the Board, including all of the Independent Trustees, considered the factors, among others, described below. Additionally, the Board considered the various screening processes that PLFA utilizes in identifying a proposed new fund manager, including screening for qualified firms through the use of quantitative data and information gathered from independent third-party databases, as well as the due diligence conducted by PLFA on the investment and compliance resources and personnel of a fund manager and an assessment of the investment strategies used by a fund manager, and the due diligence conducted by the Trust’s CCO. In addition, the Board reviewed the specific criteria and information evaluated by PLFA during the selection process of Scout, including information about another firm considered by PLFA, and PLFA’s analysis in reaching its conclusion to recommend Scout as the new Fund Manager. 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.
In evaluating the Scout Fund Management Agreement, the Board, including all the Independent Trustees, considered the following factors, among others:
1. Nature, Extent and Quality of Services
The Trustees considered the benefits to shareholders of retaining Scout as the Fund Manager, particularly in light of the nature, extent, and quality of the services expected to be provided by Scout. In this regard, the Trustees considered various materials relating to the proposed Fund Manager, including copies of the proposed Scout Fund Management Agreement; copies of Scout’s Form ADV; financial information; and other information deemed relevant to the Trustees’ evaluation, including comprehensive assessments from senior management of PLFA.
The Trustees considered that under the Scout Fund Management Agreement, Scout 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 Mid-Cap Equity Fund over both the short- and long-term, the organizational depth and resources of Scout, including the background and experience of Scout’s management and the expertise of the fund management team, as well as the investment strategies, processes and philosophy to be used with respect to the investment strategy.
In addition, the Trustees considered Scout’s written compliance policies and procedures and noted that the Trust’s Chief Compliance Officer (“CCO”) had provided an assessment of Scout’s compliance program, as required under Rule 38a-1 of the 1940 Act, and its code of ethics.
In making these assessments, the Trustees took note of the extensive due diligence PLFA conducted with respect to Scout, and were aided by the assessment and recommendation of PLFA and the in-person presentation and materials provided by Scout.
The Board concluded it was satisfied with the nature, extent and quality of the investment management services anticipated to be provided to the PL Mid-Cap Equity Fund by Scout under the Scout Fund Management Agreement.
2. Performance
The Trustees considered PLFA’s efforts and process to search for and screen advisory firms that are qualified to manage a mid-cap equity fund, and the identification by PLFA of Scout to serve as fund manager with regard to the day-to-day investment activities of the PL Mid-Cap Equity Fund. The Trustees considered factors concerning performance in connection with its consideration of this matter and in connection with approval of the related Scout Fund Management Agreement, as described below.
The Trustees considered information about the historical performance of an account managed by the same Scout Fund management team that would manage the PL Mid-Cap Equity Fund using similar investment strategies as those proposed for the PL Mid-Cap Equity Fund (the “Comparable Performance”). The Trustees considered the Comparable Performance against a pertinent benchmark and against the applicable peer group for the year-to-date, one-, three-, and five-year periods as of June 30, 2012. The Trustees also considered the Comparable Performance against a pertinent benchmark and an applicable peer group for the previous five calendar years. Additionally, the Trustees
D-3
PACIFIC LIFE FUNDS
APPROVAL OF INVESTMENT ADVISORY AGREEMENT AND FUND MANAGEMENT AGREEMENTS (Continued)
(Unaudited)
considered performance information presented by PLFA for another potential manager of the Fund and the performance of an account managed by the lead fund manager of the Scout fund management team when the individual worked at another advisory firm prior to joining Scout. The Trustees also considered the need for Scout to adhere to the Fund’s general investment mandate in order to function appropriately in the Portfolio Optimization Funds.
The Board determined that Scout’s performance record was acceptable.
3. Advisory and Fund Management Fees
The Trustees considered information regarding the comparative advisory fees charged under other investment advisory contracts of the Fund Manager with regard to other investment accounts with substantially similar investment strategies as the PL Mid-Cap Equity Fund. The Trustees noted that in certain cases there were differences in the level of services proposed to be provided to the PL Mid-Cap Equity Fund by Scout and that the level of services provided by Scout on these other accounts was due to the different nature of the accounts or an affiliation between Scout and the account. These differences often explained differences in fee schedules. The Trustees noted that the fee rates were the result of arms’-length negotiations between PLFA and Scout, and that the PL Mid-Cap Equity Fund’s sub-advisory management fees are paid by PLFA and are not paid directly by the PL Mid-Cap Equity Fund. 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 the shareholders were not expected to materially increase as a result of this portfolio manager change.
The Board concluded that the compensation payable under the Scout Fund Management Agreement is fair and reasonable.
4. Costs, Level of Profits and Economies of Scale
Costs and Profitability. The Trustees considered the projected profitability of the Scout Fund Management Agreement to Scout to the extent practicable based on the financial information provided by Scout. The Trustees considered that it was difficult to accurately determine or evaluate the projected profitability of the Scout Fund Management Agreement to Scout because it managed substantial assets or had multiple business lines and, further, that any such assessment would involve assumptions regarding its allocation policies, capital structure, cost of capital, business mix and other factors. The Trustees gave less weight to projected profitability considerations than other information provided in connection with this matter, given the arms’-length nature of the relationship between PLFA and Scout with respect to the negotiation of Fund management fees, the fact that such fees are paid by PLFA and the fact that the projected profitability of the Scout Fund Management Agreement to Scout is an estimate.
The Board concluded that the PL Mid-Cap Equity Fund’s fee structure reflected in the Scout Fund Management Agreement is fair and reasonable.
5. Ancillary Benefits
The Trustees received from PLFA and Scout information concerning other benefits that may be received by Scout and its affiliates as a result of their relationship with the PL Mid-Cap Equity 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 Scout represented that it does not anticipate utilizing an affiliated broker-dealer and that it anticipates using soft dollar credits generated by Fund commissions to pay for research services. The potential benefits that may be derived by Scout from its relationship with the PL Mid-Cap Equity Fund could include larger assets under management and reputational benefits, which are consistent with those generally derived by sub-advisers to mutual funds. The Trustees considered potential benefits to be derived by Scout from its relationship with the PL Mid-Cap Equity 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 their review, including the consideration of each of the factors referred to above, the Board found that: (i) the Scout Fund Management Agreement is in the best interests of the PL Mid-Cap Equity Fund and its shareholders; and (ii) the compensation payable under the Scout Fund Management Agreement is fair and reasonable. No single factor was determinative of the Board’s findings, but rather the Trustees based their determination on the total mix of information available to them.
D-4
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 Website at 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 www.pacificlife.com/pacificlifefunds.htm. The SEC may charge you a fee for this information.
Availability of Proxy Voting Record
By August 31 of each year, the Trust files information regarding how portfolio managers voted proxies relating to fund securities during the most recent twelve-month period ended June 30. Such information is available after filing on the Trust’s’ Website and on the SEC’s Website noted below.
Information Relating to Investments Held by the Pacific Life Funds
For complete descriptions of the various securities and other instruments held by the Trust and their risks, please see the Trust’s Prospectus and Statement of Additional Information (“SAI”). For a description of bond ratings, please see the Trust’s SAI. The Prospectus and SAI are available as noted below.
Availability of Proxy Voting Policies
A description of the Proxy Voting Policies and Procedures that the Trust uses to determine how to vote proxies relating to fund securities is described in the Trust’s SAI.
How to obtain Information
The Trust’s Prospectus, SAI (including Proxy Voting Policies) and the Portfolio Optimization Funds’ annual and semi-annual reports are available:
• | On the Trust’s Website at www.pacificlife.com/pacificlifefunds.htm |
• | On the SEC’s Website at www.sec.gov |
• | Upon request by calling, without charge, 1-800-722-2333, 7 a.m. through 5 p.m. Pacific Time |
D-5
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 I. |
(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 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/ Mary Ann Brown | |||
Mary Ann Brown Chief Executive Officer | ||||
Date: | December 7, 2012 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Mary Ann Brown | |||
Mary Ann Brown Chief Executive Officer | ||||
Date: | December 7, 2012 |
By: | /s/ Brian D. Klemens | |||
Brian D. Klemens Treasurer (Principal Financial and Accounting Officer) | ||||
Date: | December 7, 2012 |