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: September 30, 2014
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).
September 30, 2014
SEMI-ANNUAL REPORT
SEMI-ANNUAL REPORT
AS OF SEPTEMBER 30, 2014
TABLE OF CONTENTS | ||
A-1 | ||
B-1 | ||
B-3 | ||
B-5 | ||
B-9 | ||
C-1 | ||
D-1 | ||
D-3 |
PACIFIC LIFE FUNDS
PL PORTFOLIO OPTIMIZATION CONSERVATIVE FUND
September 30, 2014 (Unaudited)
PACIFIC LIFE FUNDS
PL PORTFOLIO OPTIMIZATION MODERATE-CONSERVATIVE FUND
Schedule of Investments
September 30, 2014 (Unaudited)
| Value | |||||||
AFFILIATED MUTUAL FUNDS - 100.0% | ||||||||
PL Floating Rate Loan Fund ‘P’ | 2,792,866 | $28,124,158 | ||||||
PL Inflation Managed Fund ‘P’ | 3,606,820 | 32,461,376 | ||||||
PL Managed Bond Fund ‘P’ | 13,769,897 | 151,468,870 | ||||||
PL Short Duration Bond Fund ‘P’ | 6,020,510 | 60,746,950 | ||||||
PL Emerging Markets Debt Fund ‘P’ | 3,015,689 | 29,402,966 | ||||||
PL Comstock Fund ‘P’ | 813,484 | 15,081,985 | ||||||
PL Growth Fund ‘P’ | 364,002 | 6,555,669 | ||||||
PL Large-Cap Growth Fund ‘P’ | 813,455 | 8,785,319 | ||||||
PL Large-Cap Value Fund ‘P’ | 1,228,177 | 21,542,229 | ||||||
PL Main Street Core Fund ‘P’ | 274,010 | 4,315,657 | ||||||
PL Mid-Cap Equity Fund ‘P’ | 497,373 | 6,376,322 | ||||||
PL Mid-Cap Growth Fund ‘P’ | 520,953 | 4,287,441 | ||||||
PL International Large-Cap Fund ‘P’ | 759,006 | 13,851,861 | ||||||
PL International Value Fund ‘P’ | 831,932 | 8,269,406 | ||||||
PL Currency Strategies Fund ‘P’ | 1,325,389 | 13,333,413 | ||||||
PL Global Absolute Return Fund ‘P’ | 2,184,164 | 22,169,260 | ||||||
PL Precious Metals Fund ‘P’ | 646,565 | 3,478,520 | ||||||
|
| |||||||
Total Affiliated Mutual Funds | 430,251,402 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 100.0% | 430,251,402 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.0% | 183,846 | |||||||
|
| |||||||
NET ASSETS - 100.0% | $430,435,248 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Affiliated Fixed Income Funds | 75.4% | |||
Affiliated Equity Funds | 24.6% | |||
|
| |||
100.0% | ||||
Other Assets & Liabilities, Net | 0.0% | |||
|
| |||
100.0% | ||||
|
|
| Value | |||||||
AFFILIATED MUTUAL FUNDS - 100.1% | ||||||||
PL Floating Rate Loan Fund ‘P’ | 3,453,586 | $34,777,616 | ||||||
PL Inflation Managed Fund ‘P’ | 4,524,461 | 40,720,146 | ||||||
PL Managed Bond Fund ‘P’ | 12,805,339 | 140,858,726 | ||||||
PL Short Duration Bond Fund ‘P’ | 5,828,829 | 58,812,880 | ||||||
PL Emerging Markets Debt Fund ‘P’ | 2,869,425 | 27,976,894 | ||||||
PL Comstock Fund ‘P’ | 1,570,356 | 29,114,406 | ||||||
PL Growth Fund ‘P’ | 872,247 | 15,709,162 | ||||||
PL Large-Cap Growth Fund ‘P’ | 1,810,594 | 19,554,416 | ||||||
PL Large-Cap Value Fund ‘P’ | 2,484,854 | 43,584,347 | ||||||
PL Main Street Core Fund ‘P’ | 1,864,456 | 29,365,179 | ||||||
PL Mid-Cap Equity Fund ‘P’ | 1,353,173 | 17,347,678 | ||||||
PL Mid-Cap Growth Fund ‘P’ | 699,352 | 5,755,665 | ||||||
PL Small-Cap Growth Fund ‘P’ | 394,887 | 5,769,304 | ||||||
PL Small-Cap Value Fund ‘P’ | 420,383 | 5,422,947 | ||||||
PL Emerging Markets Fund ‘P’ | 714,238 | 10,963,553 | ||||||
PL International Large-Cap Fund ‘P’ | 1,243,861 | 22,700,467 | ||||||
PL International Value Fund ‘P’ | 1,402,679 | 13,942,630 | ||||||
PL Currency Strategies Fund ‘P’ | 2,369,232 | 23,834,476 | ||||||
PL Global Absolute Return Fund ‘P’ | 2,926,195 | 29,700,877 | ||||||
PL Precious Metals Fund ‘P’ | 338,233 | 1,819,692 | ||||||
|
| |||||||
Total Affiliated Mutual Funds | 577,731,061 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 100.1% | 577,731,061 | |||||||
OTHER ASSETS & LIABILITIES, NET - (0.1%) | (457,654 | ) | ||||||
|
| |||||||
NET ASSETS - 100.0% | $577,273,407 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Affiliated Fixed Income Funds | 57.7% | |||
Affiliated Equity Funds | 42.4% | |||
|
| |||
100.1% | ||||
Other Assets & Liabilities, Net | (0.1% | ) | ||
|
| |||
100.0% | ||||
|
|
(b) | The funds’ investments are affiliated mutual funds (See Note 6C in Notes to Financial Statements). |
(c) | 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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
PL Portfolio Optimization Conservative Fund | ||||||||||||||||||
Assets | Affiliated Mutual Funds | $430,251,402 | $430,251,402 | $— | $— | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||
PL Portfolio Optimization Moderate-Conservative Fund | ||||||||||||||||||
Assets | Affiliated Mutual Funds | $577,731,061 | $577,731,061 | $— | $— | |||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-28 |
A-1
PACIFIC LIFE FUNDS
PL PORTFOLIO OPTIMIZATION MODERATE FUND
Schedule of Investments
September 30, 2014 (Unaudited)
PACIFIC LIFE FUNDS
PL PORTFOLIO OPTIMIZATION MODERATE-AGGRESSIVE FUND
Schedule of Investments
September 30, 2014 (Unaudited)
| Value | |||||||
AFFILIATED MUTUAL FUNDS - 100.1% | ||||||||
PL Floating Rate Loan Fund ‘P’ | 6,535,220 | $65,809,670 | ||||||
PL Inflation Managed Fund ‘P’ | 4,604,207 | 41,437,866 | ||||||
PL Managed Bond Fund ‘P’ | 24,008,939 | 264,098,331 | ||||||
PL Short Duration Bond Fund ‘P’ | 10,484,238 | 105,785,966 | ||||||
PL Emerging Markets Debt Fund ‘P’ | 8,158,422 | 79,544,616 | ||||||
PL Comstock Fund ‘P’ | 6,178,906 | 114,556,913 | ||||||
PL Growth Fund ‘P’ | 2,925,562 | 52,689,364 | ||||||
PL Large-Cap Growth Fund ‘P’ | 6,626,475 | 71,565,931 | ||||||
PL Large-Cap Value Fund ‘P’ | 8,378,444 | 146,957,911 | ||||||
PL Main Street Core Fund ‘P’ | 6,294,682 | 99,141,236 | ||||||
PL Mid-Cap Equity Fund ‘P’ | 5,048,904 | 64,726,949 | ||||||
PL Mid-Cap Growth Fund ‘P’ | 3,985,198 | 32,798,180 | ||||||
PL Small-Cap Growth Fund ‘P’ | 1,699,583 | 24,830,914 | ||||||
PL Small-Cap Value Fund ‘P’ | 3,603,615 | 46,486,631 | ||||||
PL Real Estate Fund ‘P’ | 1,011,112 | 14,924,011 | ||||||
PL Emerging Markets Fund ‘P’ | 4,070,447 | 62,481,354 | ||||||
PL International Large-Cap Fund ‘P’ | 6,157,216 | 112,369,199 | ||||||
PL International Value Fund ‘P’ | 6,366,572 | 63,283,723 | ||||||
PL Currency Strategies Fund ‘P’ | 8,395,362 | 84,457,339 | ||||||
PL Global Absolute Return Fund ‘P’ | 6,645,707 | 67,453,928 | ||||||
PL Precious Metals Fund ‘P’ | 2,460,689 | 13,238,505 | ||||||
|
| |||||||
Total Affiliated Mutual Funds | 1,628,638,537 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 100.1% | 1,628,638,537 | |||||||
OTHER ASSETS & LIABILITIES, NET - (0.1%) |
| (2,067,254 | ) | |||||
|
| |||||||
NET ASSETS - 100.0% | $1,626,571,283 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Affiliated Equity Funds | 61.7% | |||
Affiliated Fixed Income Funds | 38.4% | |||
|
| |||
100.1% | ||||
Other Assets & Liabilities, Net | (0.1% | ) | ||
|
| |||
100.0% | ||||
|
|
| Value | |||||||
AFFILIATED MUTUAL FUNDS - 100.1% | ||||||||
PL Inflation Managed Fund ‘P’ | 1,808,532 | $16,276,785 | ||||||
PL Managed Bond Fund ‘P’ | 8,245,367 | 90,699,040 | ||||||
PL Short Duration Bond Fund ‘P’ | 2,233,062 | 22,531,597 | ||||||
PL Emerging Markets Debt Fund ‘P’ | 2,241,331 | 21,852,980 | ||||||
PL Comstock Fund ‘P’ | 4,530,209 | 83,990,078 | ||||||
PL Growth Fund ‘P’ | 2,516,970 | 45,330,631 | ||||||
PL Large-Cap Growth Fund ‘P’ | 6,143,868 | 66,353,778 | ||||||
PL Large-Cap Value Fund ‘P’ | 5,752,152 | 100,892,749 | ||||||
PL Main Street Core Fund ‘P’ | 5,746,660 | 90,509,889 | ||||||
PL Mid-Cap Equity Fund ‘P’ | 6,859,587 | 87,939,905 | ||||||
PL Mid-Cap Growth Fund ‘P’ | 3,420,109 | 28,147,498 | ||||||
PL Small-Cap Growth Fund ‘P’ | 2,335,469 | 34,121,209 | ||||||
PL Small-Cap Value Fund ‘P’ | 4,362,393 | 56,274,868 | ||||||
PL Real Estate Fund ‘P’ | 1,424,962 | 21,032,437 | ||||||
PL Emerging Markets Fund ‘P’ | 4,181,773 | 64,190,214 | ||||||
PL International Large-Cap Fund ‘P’ | 5,434,126 | 99,172,802 | ||||||
PL International Value Fund ‘P’ | 6,553,125 | 65,138,063 | ||||||
PL Currency Strategies Fund ‘P’ | 5,764,178 | 57,987,635 | ||||||
PL Global Absolute Return Fund ‘P’ | 4,567,626 | 46,361,404 | ||||||
PL Precious Metals Fund ‘P’ | 2,390,093 | 12,858,703 | ||||||
|
| |||||||
Total Affiliated Mutual Funds | 1,111,662,265 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 100.1% | 1,111,662,265 | |||||||
OTHER ASSETS & LIABILITIES, NET - (0.1%) |
| (604,519 | ) | |||||
|
| |||||||
NET ASSETS - 100.0% | $1,111,057,746 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Affiliated Equity Funds | 82.3% | |||
Affiliated Fixed Income Funds | 17.8% | |||
|
| |||
100.1% | ||||
Other Assets & Liabilities, Net | (0.1% | ) | ||
|
| |||
100.0% | ||||
|
|
(b) | The funds’ investments are affiliated mutual funds (See Note 6C in Notes to Financial Statements). |
(c) | 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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
PL Portfolio Optimization Moderate Fund | ||||||||||||||||||
Assets | Affiliated Mutual Funds | $1,628,638,537 | $1,628,638,537 | $— | $— | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||
PL Portfolio Optimization Moderate-Aggressive Fund | ||||||||||||||||||
Assets | Affiliated Mutual Funds | $1,111,662,265 | $1,111,662,265 | $— | $— | |||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-28 |
A-2
PACIFIC LIFE FUNDS
PL PORTFOLIO OPTIMIZATION AGGRESSIVE FUND
Schedule of Investments
September 30, 2014 (Unaudited)
PACIFIC LIFE FUNDS
PL DIVERSIFIED ALTERNATIVES FUND
Schedule of Investments
September 30, 2014 (Unaudited)
| Value | |||||||
AFFILIATED MUTUAL FUNDS - 99.9% | ||||||||
PL Managed Bond Fund ‘P’ | 921,107 | $10,132,180 | ||||||
PL Emerging Markets Debt Fund ‘P’ | 497,982 | 4,855,323 | ||||||
PL Comstock Fund ‘P’ | 1,314,573 | 24,372,188 | ||||||
PL Growth Fund ‘P’ | 722,950 | 13,020,329 | ||||||
PL Large-Cap Growth Fund ‘P’ | 1,833,058 | 19,797,026 | ||||||
PL Large-Cap Value Fund ‘P’ | 1,670,710 | 29,304,260 | ||||||
PL Main Street Core Fund ‘P’ | 1,872,541 | 29,492,520 | ||||||
PL Mid-Cap Equity Fund ‘P’ | 2,111,982 | 27,075,614 | ||||||
PL Mid-Cap Growth Fund ‘P’ | 1,383,785 | 11,388,551 | ||||||
PL Small-Cap Growth Fund ‘P’ | 894,538 | 13,069,198 | ||||||
PL Small-Cap Value Fund ‘P’ | 1,674,067 | 21,595,468 | ||||||
PL Real Estate Fund ‘P’ | 621,224 | 9,169,264 | ||||||
PL Emerging Markets Fund ‘P’ | 1,420,170 | 21,799,613 | ||||||
PL International Large-Cap Fund ‘P’ | 1,582,407 | 28,878,924 | ||||||
PL International Value Fund ‘P’ | 2,073,553 | 20,611,113 | ||||||
PL Currency Strategies Fund ‘P’ | 1,664,185 | 16,741,699 | ||||||
PL Global Absolute Return Fund ‘P’ | 1,326,474 | 13,463,705 | ||||||
PL Precious Metals Fund ‘P’ | 1,202,613 | 6,470,059 | ||||||
|
| |||||||
Total Affiliated Mutual Funds | 321,237,034 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 99.9% | 321,237,034 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.1% |
| 332,378 | ||||||
|
| |||||||
NET ASSETS - 100.0% | $321,569,412 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Affiliated Equity Funds | 91.1% | |||
Affiliated Fixed Income Funds | 8.8% | |||
|
| |||
99.9% | ||||
Other Assets & Liabilities, Net | 0.1% | |||
|
| |||
100.0% | ||||
|
|
| Value | |||||||
AFFILIATED MUTUAL FUNDS - 99.1% | ||||||||
PL Floating Rate Income Fund ‘P’ | 41,488 | $429,404 | ||||||
PL Inflation Managed Fund ‘P’ | 18,737 | 168,634 | ||||||
PL Emerging Markets Debt Fund ‘P’ | 42,629 | 415,635 | ||||||
PL Real Estate Fund ‘P’ | 12,523 | 184,847 | ||||||
PL Emerging Markets Fund ‘P’ | 19,982 | 306,730 | ||||||
PL Currency Strategies Fund ‘P’ | 87,623 | 881,490 | ||||||
PL Global Absolute Return Fund ‘P’ | 92,732 | 941,225 | ||||||
PL Precious Metals Fund ‘P’ | 15,371 | 82,695 | ||||||
|
| |||||||
Total Affiliated Mutual Funds | 3,410,660 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 99.1% | 3,410,660 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.9% | 30,245 | |||||||
|
| |||||||
NET ASSETS - 100.0% | $3,440,905 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Affiliated Fixed Income Funds | 56.8% | |||
Affiliated Equity Funds | 42.3% | |||
|
| |||
99.1% | ||||
Other Assets & Liabilities, Net | 0.9% | |||
|
| |||
100.0% | ||||
|
|
(b) | The funds’ investments are affiliated mutual funds (See Note 6C in Notes to Financial Statements). |
(c) | 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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
PL Portfolio Optimization Aggressive Fund | ||||||||||||||||||
Assets | Affiliated Mutual Funds | $321,237,034 | $321,237,034 | $— | $— | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||
PL Diversified Alternatives Fund | ||||||||||||||||||
Assets | Affiliated Mutual Funds | $3,410,660 | $3,410,660 | $— | $— | |||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-28 |
A-3
PACIFIC LIFE FUNDS
PL SHORT DURATION INCOME FUND
Schedule of Investments
September 30, 2014 (Unaudited)
Principal | Value | |||||||
CORPORATE BONDS & NOTES - 77.4% | ||||||||
Consumer Discretionary - 10.5% | ||||||||
CBS Corp | $1,000,000 | $987,801 | ||||||
Chrysler Group LLC | 500,000 | 547,500 | ||||||
DIRECTV Holdings LLC | ||||||||
3.125% due 02/15/16 | 1,000,000 | 1,029,295 | ||||||
3.500% due 03/01/16 | 500,000 | 517,671 | ||||||
DISH DBS Corp | ||||||||
4.250% due 04/01/18 | 250,000 | 251,250 | ||||||
4.625% due 07/15/17 | 200,000 | 204,500 | ||||||
General Motors Co | 1,000,000 | 1,021,250 | ||||||
GLP Capital LP | 750,000 | 765,000 | ||||||
Kia Motors Corp (South Korea) | 1,000,000 | 1,038,345 | ||||||
Lennar Corp | ||||||||
4.125% due 12/01/18 | 750,000 | 746,250 | ||||||
4.500% due 06/15/19 | 500,000 | 496,875 | ||||||
NBCUniversal Enterprise Inc | 1,500,000 | 1,516,400 | ||||||
Thomson Reuters Corp (Canada) | 2,000,000 | 1,998,772 | ||||||
Toll Brothers Finance Corp | 850,000 | 851,063 | ||||||
Viacom Inc | 750,000 | 770,641 | ||||||
Wyndham Worldwide Corp | 1,000,000 | 1,003,934 | ||||||
|
| |||||||
13,746,547 | ||||||||
|
| |||||||
Consumer Staples - 4.0% | ||||||||
Smithfield Foods Inc | 250,000 | 251,250 | ||||||
Suntory Holdings Ltd (Japan) | 1,250,000 | 1,250,119 | ||||||
Sysco Corp | 2,000,000 | 2,003,609 | ||||||
Wm Wrigley Jr Co | 1,750,000 | 1,764,440 | ||||||
|
| |||||||
5,269,418 | ||||||||
|
| |||||||
Energy - 9.0% | ||||||||
Cameron International Corp | 1,000,000 | 999,966 | ||||||
Chesapeake Energy Corp | 1,500,000 | 1,503,750 | ||||||
Delek & Avner Tamar Bond Ltd (Israel) | 500,000 | 502,457 | ||||||
Harvest Operations Corp (Canada) | 500,000 | 497,720 | ||||||
Kinder Morgan Energy Partners LP | 2,000,000 | 1,996,472 | ||||||
Korea National Oil Corp (South Korea) | 500,000 | 517,172 | ||||||
Linn Energy LLC | 500,000 | 492,500 | ||||||
Nabors Industries Inc | 750,000 | 766,678 | ||||||
Petrobras Global Finance BV (Netherlands) | 1,000,000 | 976,510 | ||||||
Petroleos Mexicanos (Mexico) | 1,000,000 | 1,027,500 | ||||||
Spectra Energy Partners LP | 1,500,000 | 1,544,727 |
| Principal Amount | | Value | |||||
Transocean Inc (Cayman) | $500,000 | $500,344 | ||||||
Whiting Petroleum Corp | 500,000 | 513,750 | ||||||
|
| |||||||
11,839,546 | ||||||||
|
| |||||||
Financials - 29.6% | ||||||||
AerCap Ireland Capital Ltd (Ireland) | 350,000 | 339,937 | ||||||
American International Group Inc | 1,000,000 | 1,015,093 | ||||||
American Tower Corp REIT | 1,000,000 | 1,022,907 | ||||||
ARC Properties Operating Partnership LP REIT | 1,750,000 | 1,750,137 | ||||||
Bank of America Corp | 1,000,000 | 1,006,371 | ||||||
Bank of America NA | 1,000,000 | 1,084,109 | ||||||
Berkshire Hathaway Finance Corp | 1,000,000 | 1,004,750 | ||||||
Berkshire Hathaway Inc | 500,000 | 499,478 | ||||||
BioMed Realty LP REIT | 500,000 | 497,366 | ||||||
Capital One Bank USA NA | 1,000,000 | 992,254 | ||||||
Citigroup Inc | ||||||||
0.723% due 08/14/17 § | 750,000 | 751,173 | ||||||
0.774% due 03/10/17 § | 1,500,000 | 1,503,453 | ||||||
Export-Import Bank of Korea (South Korea) | ||||||||
0.984% due 01/14/17 § | 500,000 | 503,336 | ||||||
1.250% due 11/20/15 | 500,000 | 502,663 | ||||||
Fifth Third Bank | 500,000 | 500,610 | ||||||
Ford Motor Credit Co LLC | 2,000,000 | 2,010,010 | ||||||
General Electric Capital Corp | 1,000,000 | 1,012,279 | ||||||
General Motors Financial Co Inc | 1,000,000 | 1,023,750 | ||||||
Hyundai Capital America | 500,000 | 499,882 | ||||||
Hyundai Capital Services Inc (South Korea) | 1,000,000 | 1,004,242 | ||||||
Jackson National Life Global Funding | 1,000,000 | 996,499 | ||||||
JPMorgan Chase & Co | 1,500,000 | 1,480,563 | ||||||
Legg Mason Inc | 400,000 | 401,723 | ||||||
Metropolitan Life Global Funding I | 750,000 | 744,484 | ||||||
Morgan Stanley | 2,000,000 | 2,001,834 | ||||||
MUFG Union Bank NA | 1,000,000 | 1,008,778 | ||||||
Ocwen Financial Corp | 350,000 | 338,625 | ||||||
PNC Bank NA | 1,000,000 | 1,006,602 | ||||||
Royal Bank of Canada (Canada) | 1,000,000 | 1,000,538 | ||||||
Senior Housing Properties Trust REIT | 500,000 | 503,792 | ||||||
Synchrony Financial | 2,000,000 | 2,007,252 | ||||||
The Bank of New York Mellon Corp | 1,000,000 | 996,002 | ||||||
The Bank of Nova Scotia (Canada) | 750,000 | 746,795 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-28 |
A-4
PACIFIC LIFE FUNDS
PL SHORT DURATION INCOME FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal | Value | |||||||
The Goldman Sachs Group Inc | $1,500,000 | $1,527,572 | ||||||
The Huntington National Bank | ||||||||
1.300% due 11/20/16 | 1,000,000 | 1,001,323 | ||||||
1.350% due 08/02/16 | 500,000 | 502,643 | ||||||
The Korea Development Bank (South Korea) | 500,000 | 499,790 | ||||||
Voya Financial Inc | 1,000,000 | 1,029,767 | ||||||
WEA Finance LLC | 2,500,000 | 2,505,648 | ||||||
|
| |||||||
38,824,030 | ||||||||
|
| |||||||
Health Care - 1.6% | ||||||||
CareFusion Corp | 750,000 | 746,626 | ||||||
Mylan Inc | 1,000,000 | 1,012,038 | ||||||
Valeant Pharmaceuticals International Inc (Canada) | 350,000 | 370,125 | ||||||
|
| |||||||
2,128,789 | ||||||||
|
| |||||||
Industrials - 8.9% | ||||||||
Air Lease Corp | ||||||||
2.125% due 01/15/18 | 1,000,000 | 995,000 | ||||||
3.375% due 01/15/19 | 1,500,000 | 1,526,249 | ||||||
British Airways Pass-Through Trust ‘B’ | 1,411,638 | 1,503,395 | ||||||
Delta Air Lines Pass-Through Trust ‘A’ | ||||||||
4.750% due 11/07/21 | 896,792 | 965,217 | ||||||
4.950% due 11/23/20 | 725,101 | 775,061 | ||||||
ERAC USA Finance LLC | ||||||||
1.400% due 04/15/16 ~ | 750,000 | 755,543 | ||||||
2.350% due 10/15/19 ~ | 500,000 | 497,835 | ||||||
GATX Corp | 500,000 | 501,005 | ||||||
International Lease Finance Corp | 500,000 | 497,188 | ||||||
Owens Corning | 500,000 | 611,395 | ||||||
Penske Truck Leasing Co LP | 1,000,000 | 1,020,639 | ||||||
United Airlines Pass-Through Trust ‘B’ | ||||||||
4.625% due 03/03/24 | 1,000,000 | 995,000 | ||||||
4.750% due 10/11/23 | 750,000 | 759,000 | ||||||
United Continental Holdings Inc | 250,000 | 262,500 | ||||||
|
| |||||||
11,665,027 | ||||||||
|
| |||||||
Information Technology - 2.5% | ||||||||
Arrow Electronics Inc | 1,000,000 | 1,025,930 | ||||||
Fidelity National Information Services Inc | 1,500,000 | 1,492,331 | ||||||
Sanmina Corp | 750,000 | 736,875 | ||||||
|
| |||||||
3,255,136 | ||||||||
|
| |||||||
Materials - 4.7% | ||||||||
Alphabet Holding Co Inc | 200,000 | 196,249 | ||||||
ArcelorMittal (Luxembourg) | 750,000 | 796,875 | ||||||
Cliffs Natural Resources Inc | 500,000 | 432,500 | ||||||
FMG Resources Property Ltd (Australia) | 500,000 | 505,313 |
Principal | Value | |||||||
Freeport-McMoRan Inc | $1,500,000 | $1,490,462 | ||||||
Glencore Funding LLC | 2,000,000 | 1,960,200 | ||||||
INEOS Group Holdings SA (Luxembourg) | 200,000 | 200,250 | ||||||
LyondellBasell Industries NV (Netherlands) | 500,000 | 552,623 | ||||||
|
| |||||||
6,134,472 | ||||||||
|
| |||||||
Telecommunication Services - 2.6% | ||||||||
America Movil SAB de CV (Mexico) | 1,000,000 | 1,011,663 | ||||||
AT&T Inc | 500,000 | 500,740 | ||||||
Intelsat Jackson Holdings SA (Luxembourg) | 250,000 | 264,375 | ||||||
Orange SA (France) | 500,000 | 506,588 | ||||||
Verizon Communications Inc | 1,000,000 | 1,054,423 | ||||||
|
| |||||||
3,337,789 | ||||||||
|
| |||||||
Utilities - 4.0% | ||||||||
AES Corp | 500,000 | 493,750 | ||||||
Duke Energy Corp | 1,000,000 | 1,004,719 | ||||||
PG&E Corp | 500,000 | 501,207 | ||||||
The Dayton Power & Light Co | 1,500,000 | 1,520,567 | ||||||
The Southern Co | 750,000 | 746,932 | ||||||
TransAlta Corp (Canada) | 1,000,000 | 1,000,868 | ||||||
|
| |||||||
5,268,043 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes | 101,468,797 | |||||||
|
| |||||||
SENIOR LOAN NOTES - 17.0% | ||||||||
Consumer Discretionary - 5.4% | ||||||||
Charter Communications Operating LLC Term G | 1,000,000 | 998,214 | ||||||
Hilton Worldwide | 875,318 | 863,125 | ||||||
Interactive Data Corp | 498,750 | 496,568 | ||||||
Las Vegas Sands LLC Term B | 500,000 | 497,292 | ||||||
3.250% due 12/19/20 § | 1,489,994 | �� | 1,481,922 | |||||
Leonardo Acquisition Corp (1st Lien) | 497,500 | 491,281 | ||||||
PFS Holding Corp (1st Lien) | 497,500 | 415,413 | ||||||
Seminole Tribe of Florida | 895,000 | 891,365 | ||||||
Tribune Co | 922,114 | 911,446 | ||||||
|
| |||||||
7,046,626 | ||||||||
|
| |||||||
Energy - 2.4% | ||||||||
Expro Finservices SARL | 500,000 | 498,750 | ||||||
Paragon Offshore Finance Co | 1,750,000 | 1,666,875 | ||||||
Samson Investment Co Tranche 1 (2nd Lien) | 500,000 | 486,937 | ||||||
Seadrill Operating LP | 496,250 | 472,855 | ||||||
|
| |||||||
3,125,417 | ||||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-28 |
A-5
PACIFIC LIFE FUNDS
PL SHORT DURATION INCOME FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal | Value | |||||||
Financials - 0.4% | ||||||||
Stockbridge/SBE Holdings LLC Tranche B | $465,000 | $504,525 | ||||||
|
| |||||||
Health Care - 1.7% | ||||||||
Fresenius US Finance I Inc Tranche B | 990,000 | 987,112 | ||||||
PharMEDium Healthcare Corp (1st Lien) | 727,500 | 714,769 | ||||||
Valeant Pharmaceuticals International Inc | 597,147 | 590,962 | ||||||
|
| |||||||
2,292,843 | ||||||||
|
| |||||||
Industrials - 2.9% | ||||||||
Accudyne Industries LLC | 471,362 | 463,850 | ||||||
Bombardier Recreational Products Inc Term B | 250,000 | 246,093 | ||||||
Gates Global Inc | ||||||||
4.250% due 07/05/21 § | 500,000 | 492,322 | ||||||
Term B | ||||||||
due 07/05/21 µ | 500,000 | 492,322 | ||||||
Husky Injection Molding Systems Ltd | 747,148 | 738,369 | ||||||
MRC Global | 396,000 | 396,248 | ||||||
Rexnord LLC Term B | 498,740 | 491,675 | ||||||
Sensata Technologies BV Term B | 495,000 | 492,878 | ||||||
|
| |||||||
3,813,757 | ||||||||
|
| |||||||
Information Technology - 1.4% | ||||||||
Activision Blizzard Inc | 847,500 | 846,676 | ||||||
Avago Technologies Cayman Ltd | 498,750 | 494,876 | ||||||
Infor (US) Inc Tranche B-5 | 485,318 | 474,944 | ||||||
|
| |||||||
1,816,496 | ||||||||
|
| |||||||
Materials - 2.3% | ||||||||
BWAY Intermediate Co Inc | 748,125 | 749,995 | ||||||
FMG Resources Property Ltd | 1,978,778 | 1,940,851 | ||||||
NewPage Corp Term B | 300,000 | 301,000 | ||||||
|
| |||||||
2,991,846 | ||||||||
|
| |||||||
Telecommunication Services - 0.5% | ||||||||
Windstream Corp Tranche B-5 | 735,684 | 728,475 | ||||||
|
| |||||||
Total Senior Loan Notes | 22,319,985 | |||||||
|
|
Principal | Value | |||||||
MORTGAGE-BACKED SECURITIES - 0.2% | ||||||||
Collateralized Mortgage Obligations - Commercial - 0.2% |
| |||||||
Hilton USA Trust | $250,000 | $250,351 | ||||||
|
| |||||||
Total Mortgage-Backed Securities | 250,351 | |||||||
|
| |||||||
ASSET-BACKED SECURITIES - 1.1% | ||||||||
Carlyle Global Market Strategies CLO Ltd | 500,000 | 494,061 | ||||||
Madison Park Funding VIII Ltd | 500,000 | 497,994 | ||||||
Race Point VI CLO Ltd | 500,000 | 499,484 | ||||||
|
| |||||||
1,491,539 | ||||||||
|
| |||||||
Total Asset-Backed Securities | 1,491,539 | |||||||
|
| |||||||
U.S. TREASURY OBLIGATIONS - 0.5% | ||||||||
U.S. Treasury Notes - 0.5% |
| |||||||
0.250% due 02/28/15 | 500,000 | 500,449 | ||||||
0.875% due 11/30/16 | 175,000 | 175,649 | ||||||
|
| |||||||
676,098 | ||||||||
|
| |||||||
Total U.S. Treasury Obligations | 676,098 | |||||||
|
| |||||||
Shares | ||||||||
SHORT-TERM INVESTMENT - 7.1% | ||||||||
Money Market Fund - 7.1% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 9,232,377 | 9,232,377 | ||||||
|
| |||||||
Total Short-Term Investment | 9,232,377 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 103.3% | 135,439,147 | |||||||
OTHER ASSETS & LIABILITIES, Net - (3.3%) | (4,338,408 | ) | ||||||
|
| |||||||
NET ASSETS - 100.0% | $131,100,739 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Corporate Bonds & Notes | 77.4% | |||
Senior Loan Notes | 17.0% | |||
Short-Term Investment | 7.1% | |||
Others (each less than 3.0%) | 1.8% | |||
|
| |||
103.3% | ||||
Other Assets & Liabilities, Net | (3.3% | ) | ||
|
| |||
100.0% | ||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-28 |
A-6
PACIFIC LIFE FUNDS
PL SHORT DURATION INCOME FUND
Schedule of Investments (Continued)
September 30, 2014 (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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Corporate Bonds & Notes | $101,468,797 | $— | $99,714,797 | $1,754,000 | |||||||||||||
Senior Loan Notes | 22,319,985 | — | 21,904,572 | 415,413 | ||||||||||||||
Mortgage-Backed Securities | 250,351 | — | 250,351 | — | ||||||||||||||
Asset-Backed Securities | 1,491,539 | — | 1,491,539 | — | ||||||||||||||
U.S. Treasury Obligations | 676,098 | — | 676,098 | — | ||||||||||||||
Short-Term Investment | 9,232,377 | 9,232,377 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $135,439,147 | $9,232,377 | $124,037,357 | $2,169,413 | ||||||||||||||
|
|
|
|
|
|
|
|
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, 2014:
Corporate Bonds & Notes | Senior Loan Notes | Total | ||||||||||
Value, Beginning of Period | $— | $— | $— | |||||||||
Purchases | 1,000,000 | — | 1,000,000 | |||||||||
Sales (Includes Paydowns) | — | — | — | |||||||||
Accrued Discounts (Premiums) | — | — | — | |||||||||
Net Realized Gains (Losses) | — | — | — | |||||||||
Change in Net Unrealized Appreciation (Depreciation) | (5,000 | ) | — | (5,000 | ) | |||||||
Transfers In | 759,000 | 415,413 | 1,174,413 | |||||||||
Transfers Out | — | — | — | |||||||||
|
|
|
|
|
| |||||||
Value, End of Period | $1,754,000 | $415,413 | $2,169,413 | |||||||||
|
|
|
|
|
| |||||||
Change in Net Unrealized Appreciation (Depreciation) on | ($5,000 | ) | $— | ($5,000 | ) | |||||||
|
|
|
|
|
|
The significant unobservable inputs were provided by a vendor-priced single broker quote.
During the six-month period ended September 30, 2014, investments with a total aggregate value of $1,174,413 were transferred from Level 2 to Level 3 due to the use of a vendor-priced single broker quote versus the pricing vendor using evaluated pricing of the investment.
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-28 |
A-7
PACIFIC LIFE FUNDS
PL INCOME FUND
Schedule of Investments
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
CORPORATE BONDS & NOTES - 63.6% | ||||||||
Consumer Discretionary - 8.1% | ||||||||
CBS Corp | $2,000,000 | $1,975,597 | ||||||
Cedar Fair LP | 3,000,000 | 2,970,000 | ||||||
Ford Motor Co | 1,500,000 | 1,507,080 | ||||||
General Motors Co | 1,150,000 | 1,351,250 | ||||||
GLP Capital LP | 3,250,000 | 3,330,243 | ||||||
Kia Motors Corp (South Korea) | 1,500,000 | 1,557,519 | ||||||
Lennar Corp | 3,000,000 | 2,981,250 | ||||||
MDC Holdings Inc | 2,500,000 | 2,300,000 | ||||||
MGM Resorts International | 3,000,000 | 3,202,500 | ||||||
Pinnacle Entertainment Inc | 1,500,000 | 1,575,000 | ||||||
Signet UK Finance PLC (United Kingdom) | 3,000,000 | 3,023,172 | ||||||
Six Flags Entertainment Corp | 2,500,000 | 2,437,500 | ||||||
Standard Pacific Corp | 2,500,000 | 2,559,375 | ||||||
Virgin Media Secured Finance PLC (United Kingdom) | 3,500,000 | 3,543,750 | ||||||
Wyndham Worldwide Corp | 4,000,000 | 4,111,228 | ||||||
|
| |||||||
38,425,464 | ||||||||
|
| |||||||
Consumer Staples - 1.9% | ||||||||
Reynolds Group Issuer Inc | 6,000,000 | 6,135,000 | ||||||
Tyson Foods Inc | 2,800,000 | 2,811,281 | ||||||
|
| |||||||
8,946,281 | ||||||||
|
| |||||||
Energy - 7.2% | ||||||||
Chesapeake Energy Corp | 400,000 | 401,000 | ||||||
Cimarex Energy Co | 1,500,000 | 1,620,000 | ||||||
Harvest Operations Corp (Canada) | 1,500,000 | 1,493,160 | ||||||
Kinder Morgan Energy Partners LP | 4,000,000 | 3,965,108 | ||||||
Korea National Oil Corp (South Korea) | 3,000,000 | 3,103,029 | ||||||
Linn Energy LLC | 3,000,000 | 2,955,000 | ||||||
Petrobras Global Finance BV (Netherlands) | 3,000,000 | 2,818,590 | ||||||
Petrobras International Finance Co SA (Luxembourg) | 3,000,000 | 3,044,700 | ||||||
Sabine Pass Liquefaction LLC | 2,250,000 | 2,323,125 | ||||||
Samson Investment Co | 2,000,000 | 1,825,000 |
Principal Amount | Value | |||||||
The Williams Cos Inc | ||||||||
3.700% due 01/15/23 | $ | 5,000,000 | $ 4,732,605 | |||||
4.550% due 06/24/24 | 1,950,000 | 1,933,378 | ||||||
Transocean Inc (Cayman) | 3,500,000 | 3,502,415 | ||||||
|
| |||||||
33,717,110 | ||||||||
|
| |||||||
Financials - 18.5% | ||||||||
AerCap Ireland Capital Ltd (Ireland) | 2,150,000 | 2,088,188 | ||||||
5.000% due 10/01/21 ~ | 400,000 | 399,000 | ||||||
Alexandria Real Estate Equities Inc REIT | 1,750,000 | 1,736,513 | ||||||
American Tower Corp REIT | 2,000,000 | 2,100,738 | ||||||
ARC Properties Operating Partnership LP REIT | 1,750,000 | 1,750,137 | ||||||
Bank of America Corp | 4,000,000 | 3,964,972 | ||||||
Bank of America NA | 7,200,000 | 7,805,585 | ||||||
BioMed Realty LP REIT | 1,000,000 | 994,731 | ||||||
Carlyle Holdings Finance LLC | 3,000,000 | 3,085,104 | ||||||
CBL & Associates LP REIT | 3,000,000 | 3,227,685 | ||||||
Columbia Property Trust Operating Partnership LP REIT | 750,000 | 788,177 | ||||||
Duke Realty LP REIT | 5,250,000 | 5,489,594 | ||||||
Ford Motor Credit Co LLC | 5,000,000 | 5,274,925 | ||||||
General Motors Financial Co Inc | 3,000,000 | 3,071,250 | ||||||
Genworth Holdings Inc | 2,600,000 | 2,684,976 | ||||||
JPMorgan Chase & Co | 2,000,000 | 1,959,666 | ||||||
Kilroy Realty LP REIT | 5,000,000 | 5,017,435 | ||||||
Kimco Realty Corp REIT | 1,000,000 | 999,331 | ||||||
Legg Mason Inc | 1,650,000 | 1,657,105 | ||||||
Liberty Mutual Group Inc | 4,500,000 | 4,853,462 | ||||||
Morgan Stanley | ||||||||
2.375% due 07/23/19 | 3,000,000 | 2,953,884 | ||||||
5.000% due 11/24/25 | 2,000,000 | 2,094,952 | ||||||
Neuberger Berman Group LLC | 1,000,000 | 1,045,000 | ||||||
Piedmont Operating Partnership LP REIT | 3,100,000 | 3,166,018 | ||||||
Prudential Financial Inc | 3,000,000 | 3,031,875 | ||||||
Raymond James Financial Inc | 2,100,000 | 2,371,066 | ||||||
Senior Housing Properties Trust REIT | 3,000,000 | 3,030,942 | ||||||
Synchrony Financial | ||||||||
3.750% due 08/15/21 | 1,500,000 | 1,515,104 | ||||||
4.250% due 08/15/24 | 1,500,000 | 1,502,424 | ||||||
Vornado Realty LP REIT | 2,250,000 | 2,246,751 | ||||||
WEA Finance LLC | 3,000,000 | 2,998,926 | ||||||
Wells Fargo & Co | 2,500,000 | 2,495,480 | ||||||
|
| |||||||
87,400,996 | ||||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-28 |
A-8
PACIFIC LIFE FUNDS
PL INCOME FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
Health Care - 1.0% | ||||||||
CHS/Community Health Systems Inc | $200,000 | $209,500 | ||||||
HCA Inc | 4,000,000 | 4,375,000 | ||||||
|
| |||||||
4,584,500 | ||||||||
|
| |||||||
Industrials - 13.3% | ||||||||
Air Canada Pass-Through Trust ‘A’ (Canada) | 2,440,382 | 2,488,458 | ||||||
Air Lease Corp | ||||||||
3.875% due 04/01/21 | 5,500,000 | 5,582,500 | ||||||
4.250% due 09/15/24 | 3,000,000 | 2,958,750 | ||||||
American Airlines Pass-Through Trust ‘B’ | 950,000 | 965,438 | ||||||
BAE Systems Holdings Inc | 1,600,000 | 1,591,632 | ||||||
British Airways Pass-Through Trust ‘A’ (United Kingdom) | 2,957,584 | 3,153,672 | ||||||
British Airways Pass-Through Trust ‘B’ (United Kingdom) | 5,062,426 | 5,391,483 | ||||||
Continental Airlines Pass-Through Trust ‘A’ | 3,400,734 | 3,439,162 | ||||||
Delta Air Lines Pass-Through Trust ‘A’ | ||||||||
4.750% due 11/07/21 | 6,277,541 | 6,756,518 | ||||||
4.950% due 11/23/20 | 1,051,397 | 1,123,838 | ||||||
ERAC USA Finance LLC | 1,500,000 | 1,506,228 | ||||||
Hawaiian Airlines Pass-Through Certificates ‘A’ | 2,000,000 | 1,989,600 | ||||||
International Lease Finance Corp | 2,000,000 | 2,255,000 | ||||||
Owens Corning | 3,500,000 | 3,568,943 | ||||||
Penske Truck Leasing Co LP | 3,500,000 | 3,606,106 | ||||||
The ADT Corp | 2,500,000 | 2,593,750 | ||||||
The Hertz Corp | 2,000,000 | 2,075,000 | ||||||
United Airlines Pass-Through Trust ‘B’ | 3,050,000 | 3,086,600 | ||||||
US Airways Pass-Through Trust ‘A’ | 3,584,659 | 3,705,820 | ||||||
Valmont Industries Inc | 2,000,000 | 1,960,872 | ||||||
Virgin Australia Trust (Australia) | 2,791,465 | 2,924,059 | ||||||
|
| |||||||
62,723,429 | ||||||||
|
| |||||||
Information Technology - 1.0% | ||||||||
Fidelity National Information Services Inc | 2,500,000 | 2,505,068 | ||||||
NetApp Inc | 2,200,000 | 2,217,006 | ||||||
|
| |||||||
4,722,074 | ||||||||
|
| |||||||
Materials - 8.1% | ||||||||
Alphabet Holding Co Inc | 2,200,000 | 2,158,750 | ||||||
ArcelorMittal (Luxembourg) | 2,000,000 | 2,110,000 | ||||||
Fibria Overseas Finance Ltd (Cayman) | 1,450,000 | 1,433,688 | ||||||
Freeport-McMoRan Inc | 5,500,000 | 5,380,749 |
Principal Amount | Value | |||||||
Glencore Funding LLC | ||||||||
2.500% due 01/15/19 ~ | $1,000,000 | $980,100 | ||||||
4.125% due 05/30/23 ~ | 7,000,000 | 6,942,257 | ||||||
Reliance Steel & Aluminum Co | 4,850,000 | 4,995,820 | ||||||
Samarco Mineracao SA (Brazil) | 3,000,000 | 3,091,500 | ||||||
Sealed Air Corp | 2,000,000 | 2,230,000 | ||||||
Southern Copper Corp | 2,000,000 | 1,898,240 | ||||||
Tronox Finance LLC | 2,500,000 | 2,525,000 | ||||||
Vale SA (Brazil) | 2,000,000 | 1,966,838 | ||||||
Yamana Gold Inc (Canada) | 2,600,000 | 2,593,908 | ||||||
|
| |||||||
38,306,850 | ||||||||
|
| |||||||
Telecommunication Services - 3.1% | ||||||||
CC Holdings GS V LLC | 3,350,000 | 3,301,981 | ||||||
Hughes Satellite Systems Corp | 2,500,000 | 2,695,313 | ||||||
Qwest Corp | 2,650,000 | 3,042,958 | ||||||
Verizon Communications Inc | 5,000,000 | 5,534,285 | ||||||
|
| |||||||
14,574,537 | ||||||||
|
| |||||||
Utilities - 1.4% | ||||||||
American Transmission Systems Inc | 1,500,000 | 1,514,948 | ||||||
Jersey Central Power & Light Co | 3,000,000 | 3,191,568 | ||||||
NRG Energy Inc | 2,000,000 | 2,075,000 | ||||||
|
| |||||||
6,781,516 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes | 300,182,757 | |||||||
|
| |||||||
SENIOR LOAN NOTES - 21.2% | ||||||||
Consumer Discretionary - 6.0% | ||||||||
Caesars Entertainment Resort Properties LLC Term B | 2,977,500 | 2,859,144 | ||||||
ClubCorp Club Operation Inc | 1,421,014 | 1,415,685 | ||||||
Federal-Mogul Corp Tranche C | 4,000,000 | 3,971,428 | ||||||
Hilton Worldwide | 2,641,726 | 2,604,930 | ||||||
Interactive Data Corp | 1,745,625 | 1,737,988 | ||||||
Las Vegas Sands LLC Term B | 3,970,000 | 3,948,495 | ||||||
Leonardo Acquisition Corp (1st Lien) | 1,492,500 | 1,473,844 | ||||||
Seminole Tribe of Florida | 4,173,575 | 4,156,622 | ||||||
Spin Holdco Inc (1st Lien) | 1,492,500 | 1,471,278 | ||||||
The Goodyear Tire & Rubber Co (2nd Lien) | 2,000,000 | 2,003,438 | ||||||
Tribune Co | 2,858,552 | 2,825,482 | ||||||
|
| |||||||
28,468,334 | ||||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-28 |
A-9
PACIFIC LIFE FUNDS
PL INCOME FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
Consumer Staples - 1.8% | ||||||||
Albertson’s LLC Term B-2 | $1,963,562 | $1,959,706 | ||||||
BJ’s Wholesale Club Inc (1st Lien) | 2,947,781 | 2,906,196 | ||||||
Smart & Final Inc (1st Lien) | 1,662,246 | 1,655,320 | ||||||
Sprouts Farmers Markets Holdings LLC | 1,949,667 | 1,941,950 | ||||||
|
| |||||||
8,463,172 | ||||||||
|
| |||||||
Energy - 1.9% | ||||||||
Expro Finance Luxembourg | 1,750,000 | 1,745,625 | ||||||
Moxie Patriot LLC Term B-1 | 1,000,000 | 1,025,000 | ||||||
Paragon Offshore Finance Co | 4,000,000 | 3,810,000 | ||||||
Samson Investment Co Tranche 1 (2nd Lien) | 2,500,000 | 2,434,688 | ||||||
|
| |||||||
9,015,313 | ||||||||
|
| |||||||
Financials - 2.4% | ||||||||
Amwins Group (1st Lien) | 2,969,818 | 2,969,818 | ||||||
First Data Corp | 2,500,000 | 2,454,688 | ||||||
HUB International Ltd | ||||||||
4.250% due 10/02/20 § | 2,975,050 | 2,920,199 | ||||||
Realogy Corp Term B | 1,477,584 | 1,457,268 | ||||||
Stockbridge/SBE Holdings LLC Tranche B | 1,450,000 | 1,573,250 | ||||||
|
| |||||||
11,375,223 | ||||||||
|
| |||||||
Health Care - 1.6% | ||||||||
Fresenius US Finance I Inc Tranche B | 4,455,000 | 4,442,005 | ||||||
Valeant Pharmaceuticals International | 2,984,777 | 2,955,995 | ||||||
|
| |||||||
7,398,000 | ||||||||
|
| |||||||
Industrials - 3.2% | ||||||||
AlixPartners LLP Term B-2 (1st Lien) | 1,955,299 | 1,930,858 | ||||||
Gates Global LLC | 2,373,000 | 2,336,558 | ||||||
MRC Global | 990,000 | 990,619 | ||||||
Rexnord LLC Term B | 4,964,962 | 4,894,624 | ||||||
Sensata Technologies BV Term B | 1,980,000 | 1,971,514 | ||||||
Transdigm Inc Tranche D | 2,992,500 | 2,950,285 | ||||||
|
| |||||||
15,074,458 | ||||||||
|
| |||||||
Information Technology - 1.4% | ||||||||
Activision Blizzard Inc | 2,542,500 | 2,540,029 | ||||||
Avago Technologies Cayman Ltd | 2,992,500 | 2,969,254 | ||||||
Excelitas Technologies Corp Term B | 979,500 | 980,724 | ||||||
|
| |||||||
6,490,007 | ||||||||
|
|
Principal Amount | Value | |||||||
Materials - 1.9% | ||||||||
BWAY Intermediate Co Inc | $2,992,500 | $2,999,981 | ||||||
FMG Resources Property Ltd | 5,922,681 | 5,809,161 | ||||||
|
| |||||||
8,809,142 | ||||||||
|
| |||||||
Telecommunication Services - 1.0% | ||||||||
Level 3 Financing Inc | ||||||||
Tranche B | ||||||||
4.000% due 01/15/20 § | 2,500,000 | 2,458,985 | ||||||
Tranche B-III | ||||||||
4.000% due 08/02/19 § | 2,500,000 | 2,459,765 | ||||||
|
| |||||||
4,918,750 | ||||||||
|
| |||||||
Total Senior Loan Notes | 100,012,399 | |||||||
|
| |||||||
MORTGAGE-BACKED SECURITIES - 0.3% | ||||||||
Collateralized Mortgage Obligations - Commercial - 0.3% |
| |||||||
Hilton USA Trust | 1,500,000 | 1,502,349 | ||||||
|
| |||||||
Total Mortgage-Backed Securities | 1,502,349 | |||||||
|
| |||||||
ASSET-BACKED SECURITIES - 1.8% |
| |||||||
Carlyle Global Market Strategies Ltd | 1,500,000 | 1,482,182 | ||||||
3.384% due 07/27/26 " § ~ | 1,500,000 | 1,490,983 | ||||||
Madison Park Funding VIII Ltd | 2,500,000 | 2,489,968 | ||||||
Race Point VI CLO Ltd | 1,500,000 | 1,498,453 | ||||||
3.344% due 05/24/23 " § ~ | 1,500,000 | 1,484,110 | ||||||
|
| |||||||
Total Asset-Backed Securities | 8,445,696 | |||||||
|
| |||||||
U.S. GOVERNMENT AGENCY ISSUES - 0.9% |
| |||||||
Fannie Mae | 4,000,000 | 4,043,172 | ||||||
|
| |||||||
Total U.S. Government Agency Issues | 4,043,172 | |||||||
|
| |||||||
U.S. TREASURY OBLIGATIONS - 6.4% | ||||||||
U.S. Treasury Bonds - 0.8% | ||||||||
3.125% due 02/15/43 | 4,000,000 | 3,943,752 | ||||||
|
| |||||||
U.S. Treasury Notes - 5.6% | ||||||||
0.250% due 02/28/15 | 5,000,000 | 5,004,490 | ||||||
0.375% due 04/15/15 | 5,000,000 | 5,008,790 | ||||||
0.375% due 06/30/15 | 5,000,000 | 5,011,815 | ||||||
0.625% due 10/15/16 | 2,000,000 | 1,999,376 | ||||||
0.625% due 02/15/17 | 3,000,000 | 2,987,694 | ||||||
0.750% due 03/15/17 | 3,000,000 | 2,994,726 | ||||||
1.375% due 07/31/18 | 2,500,000 | 2,490,820 | ||||||
1.375% due 09/30/18 | 1,000,000 | 994,102 | ||||||
|
| |||||||
26,491,813 | ||||||||
|
| |||||||
Total U.S. Treasury Obligations | 30,435,565 | |||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-28 |
A-10
PACIFIC LIFE FUNDS
PL INCOME FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
FOREIGN GOVERNMENT BONDS & NOTES - 3.0% |
| |||||||
Chile Government (Chile) | $4,000,000 | $3,800,000 | ||||||
Mexico Government (Mexico) | ||||||||
3.500% due 01/21/21 | 1,000,000 | 1,016,202 | ||||||
3.625% due 03/15/22 | 2,000,000 | 2,038,000 | ||||||
Province of Ontario (Canada) | 3,000,000 | 2,939,355 | ||||||
Republic of Korea (South Korea) | 4,000,000 | 4,288,600 | ||||||
|
| |||||||
14,082,157 | ||||||||
|
| |||||||
Total Foreign Government Bonds & Notes | 14,082,157 | |||||||
|
| |||||||
Shares | ||||||||
SHORT-TERM INVESTMENT - 2.2% | ||||||||
Money Market Fund - 2.2% | ||||||||
BlackRock Liquidity Funds Treasury | 10,304,601 | 10,304,601 | ||||||
|
| |||||||
Total Short-Term Investment | 10,304,601 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 99.4% | 469,008,696 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.6% | 2,916,340 | |||||||
|
| |||||||
NET ASSETS - 100.0% | $471,925,036 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Corporate Bonds & Notes | 63.6% | |||
Senior Loan Notes | 21.2% | |||
U.S. Treasury Obligations | 6.4% | |||
Other (each less than 3.0%) | 8.2% | |||
|
| |||
99.4% | ||||
Other Assets & Liabilities, Net | 0.6% | |||
|
| |||
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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Corporate Bonds & Notes | $300,182,757 | $— | $297,096,157 | $3,086,600 | |||||||||||||
Senior Loan Notes | 100,012,399 | — | 100,012,399 | — | ||||||||||||||
Mortgage-Backed Securities | 1,502,349 | — | 1,502,349 | — | ||||||||||||||
Asset-Backed Securities | 8,445,696 | — | 8,445,696 | — | ||||||||||||||
U.S. Government Agency Issues | 4,043,172 | — | 4,043,172 | — | ||||||||||||||
U.S. Treasury Obligations | 30,435,565 | — | 30,435,565 | — | ||||||||||||||
Foreign Government Bonds & Notes | 14,082,157 | — | 14,082,157 | — | ||||||||||||||
Short-Term Investment | 10,304,601 | 10,304,601 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $469,008,696 | $10,304,601 | $455,617,495 | $3,086,600 | ||||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-28 |
A-11
PACIFIC LIFE FUNDS
PL STRATEGIC INCOME FUND
Schedule of Investments
September 30, 2014 (Unaudited)
Shares | Value | |||||||
CONVERTIBLE PREFERRED STOCKS - 0.5% | ||||||||
Energy - 0.1% | ||||||||
Halcon Resources Corp 5.750% * | 200 | $163,299 | ||||||
|
| |||||||
Health Care - 0.4% | ||||||||
Amsurg Corp 5.250% * | 4,875 | 521,381 | ||||||
|
| |||||||
Total Convertible Preferred Stocks | 684,680 | |||||||
|
| |||||||
COMMON STOCKS - 3.8% | ||||||||
Consumer Discretionary - 1.4% | ||||||||
Cedar Fair LP | 7,400 | 349,798 | ||||||
Las Vegas Sands Corp | 6,365 | 395,967 | ||||||
Lennar Corp ‘A’ | 5,425 | 210,653 | ||||||
MGM Resorts International * | 12,640 | 287,939 | ||||||
Mohawk Industries Inc * | 1,400 | 188,748 | ||||||
Six Flags Entertainment Corp | 10,177 | 349,987 | ||||||
Standard Pacific Corp * | 22,000 | 164,780 | ||||||
|
| |||||||
1,947,872 | ||||||||
|
| |||||||
Energy - 0.3% | ||||||||
Chesapeake Energy Corp | 8,300 | 190,817 | ||||||
Halcon Resources Corp * | 558 | 2,209 | ||||||
Kinder Morgan Inc | 7,210 | 276,431 | ||||||
|
| |||||||
469,457 | ||||||||
|
| |||||||
Financials - 0.2% | ||||||||
Bank of America Corp | 16,130 | 275,017 | ||||||
|
| |||||||
Industrials - 0.7% | ||||||||
Air Lease Corp | 8,060 | 261,950 | ||||||
The ADT Corp | 5,810 | 206,023 | ||||||
The Boeing Co | 2,695 | 343,289 | ||||||
United Rentals Inc * | 1,175 | 130,543 | ||||||
|
| |||||||
941,805 | ||||||||
|
| |||||||
Materials - 0.8% | ||||||||
Berry Plastics Group Inc * | 13,480 | 340,235 | ||||||
Freeport-McMoRan Inc | 3,100 | 101,215 | ||||||
Louisiana-Pacific Corp * | 5,800 | 78,822 | ||||||
Reliance Steel & Aluminum Co | 2,940 | 201,096 | ||||||
Rock-Tenn Co ‘A’ | 6,600 | 314,028 | ||||||
|
| |||||||
1,035,396 | ||||||||
|
| |||||||
Telecommunication Services - 0.3% | ||||||||
Intelsat SA (Luxembourg) * | 4,680 | 80,215 | ||||||
Verizon Communications Inc | 6,410 | 320,436 | ||||||
|
| |||||||
400,651 | ||||||||
|
| |||||||
Utilities - 0.1% | ||||||||
NRG Energy Inc | 6,500 | 198,120 | ||||||
|
| |||||||
Total Common Stocks | 5,268,318 | |||||||
|
| |||||||
CLOSED-END MUTUAL FUNDS - 1.6% | ||||||||
Eaton Vance Senior Income Trust | 75,130 | 489,096 | ||||||
First Trust Senior Floating Rate Income Fund II | 36,183 | 490,641 | ||||||
Invesco Senior Income Trust | 125,610 | 596,648 | ||||||
Voya Prime Rate Trust | 109,720 | 603,460 | ||||||
|
| |||||||
2,179,845 | ||||||||
|
| |||||||
Total Closed-End Mutual Funds | 2,179,845 | |||||||
|
|
Principal | Value | |||||||
CORPORATE BONDS & NOTES - 66.9% | ||||||||
Consumer Discretionary - 8.6% | ||||||||
24 Hour Holdings III LLC | $650,000 | $604,500 | ||||||
Beazer Homes USA Inc | ||||||||
5.750% due 06/15/19 | 1,040,000 | 988,000 | ||||||
7.250% due 02/01/23 | 400,000 | 400,000 | ||||||
7.500% due 09/15/21 | 650,000 | 664,625 | ||||||
Caesars Entertainment Operating Co Inc | ||||||||
9.000% due 02/15/20 | 250,000 | 194,375 | ||||||
11.250% due 06/01/17 | 100,000 | 77,625 | ||||||
Caesars Entertainment Resort Properties LLC | ||||||||
8.000% due 10/01/20 ~ | 100,000 | 99,187 | ||||||
11.000% due 10/01/21 ~ | 100,000 | 94,250 | ||||||
Caesars Growth Properties Holdings LLC | 300,000 | 263,625 | ||||||
CBS Outdoor Americas Capital LLC | ||||||||
5.250% due 02/15/22 ~ | 300,000 | 300,375 | ||||||
5.875% due 03/15/25 ~ | 300,000 | 302,250 | ||||||
CEC Entertainment Inc | 500,000 | 470,000 | ||||||
Cedar Fair LP | 300,000 | 297,000 | ||||||
Greektown Holdings LLC | 400,000 | 400,000 | ||||||
iHeartCommunications Inc | 100,000 | 84,178 | ||||||
Jo-Ann Stores LLC | 500,000 | 477,500 | ||||||
Landry’s Holdings II Inc | 250,000 | 258,750 | ||||||
Landry’s Inc | 100,000 | 106,250 | ||||||
MGM Resorts International | 350,000 | 373,625 | ||||||
Michaels Stores Inc | 1,000,000 | 997,500 | ||||||
Mohawk Industries Inc | 480,000 | 478,608 | ||||||
Neiman Marcus Group Ltd LLC | ||||||||
8.000% due 10/15/21 ~ | 50,000 | 52,250 | ||||||
8.750% PIK due 10/15/21 ~ | 400,000 | 423,000 | ||||||
NPC International Inc | 400,000 | 419,000 | ||||||
Penn National Gaming Inc | 450,000 | 416,250 | ||||||
Signet UK Finance PLC (United Kingdom) | 650,000 | 655,021 | ||||||
The ServiceMaster Co | 284,000 | 301,750 | ||||||
Wyndham Worldwide Corp | ||||||||
3.900% due 03/01/23 | 350,000 | 345,563 | ||||||
5.625% due 03/01/21 | 1,250,000 | 1,390,005 | ||||||
|
| |||||||
11,935,062 | ||||||||
|
| |||||||
Consumer Staples - 3.3% | ||||||||
Beverages & More Inc | 550,000 | 519,062 | ||||||
JBS Investments GmbH (Austria) | 700,000 | 747,250 | ||||||
JBS USA LLC | 250,000 | 263,750 | ||||||
Post Holdings Inc | 400,000 | 368,000 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-28 |
A-12
PACIFIC LIFE FUNDS
PL STRATEGIC INCOME FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal | Value | |||||||
Reynolds Group Issuer Inc | ||||||||
8.250% due 02/15/21 | $1,250,000 | $1,328,125 | ||||||
9.875% due 08/15/19 | 700,000 | 756,875 | ||||||
The WhiteWave Foods Co | 600,000 | 607,500 | ||||||
|
| |||||||
4,590,562 | ||||||||
|
| |||||||
Energy - 12.2% | ||||||||
American Energy-Woodford LLC | 150,000 | 139,875 | ||||||
American Energy-Permian Basin LLC | 1,000,000 | 920,000 | ||||||
Arch Coal Inc | 550,000 | 301,125 | ||||||
Calumet Specialty Products Partners LP | ||||||||
6.500% due 04/15/21 ~ | 300,000 | 286,500 | ||||||
9.625% due 08/01/20 | 250,000 | 276,250 | ||||||
Chaparral Energy Inc | 850,000 | 913,750 | ||||||
Crestwood Midstream Partners LP | ||||||||
6.000% due 12/15/20 | 750,000 | 759,375 | ||||||
6.125% due 03/01/22 | 250,000 | 251,875 | ||||||
Energy XXI Gulf Coast Inc | ||||||||
6.875% due 03/15/24 ~ | 350,000 | 329,875 | ||||||
7.500% due 12/15/21 | 250,000 | 246,250 | ||||||
Halcon Resources Corp | ||||||||
8.875% due 05/15/21 | 350,000 | 346,500 | ||||||
9.750% due 07/15/20 | 500,000 | 511,250 | ||||||
Hercules Offshore Inc | ||||||||
6.750% due 04/01/22 ~ | 150,000 | 117,562 | ||||||
7.500% due 10/01/21 ~ | 500,000 | 405,000 | ||||||
Hiland Partners LP | ||||||||
5.500% due 05/15/22 ~ | 50,000 | 48,750 | ||||||
7.250% due 10/01/20 ~ | 550,000 | 585,750 | ||||||
Kinder Morgan Energy Partners LP | 1,500,000 | 1,486,916 | ||||||
Linn Energy LLC | ||||||||
6.500% due 05/15/19 | 750,000 | 738,750 | ||||||
6.500% due 09/15/21 | 200,000 | 196,000 | ||||||
MEG Energy Corp (Canada) | 1,000,000 | 1,030,000 | ||||||
Petrobras Global Finance BV (Netherlands) | 500,000 | 507,853 | ||||||
Petrobras International Finance Co SA (Luxembourg) | 500,000 | 507,450 | ||||||
Rowan Cos Inc | 500,000 | 520,357 | ||||||
RSP Permian Inc | 100,000 | 100,750 | ||||||
Samson Investment Co | 350,000 | 319,375 | ||||||
Sanchez Energy Corp | ||||||||
6.125% due 01/15/23 ~ | 150,000 | 149,085 | ||||||
7.750% due 06/15/21 | 500,000 | 537,500 | ||||||
SandRidge Energy Inc | ||||||||
7.500% due 03/15/21 | 350,000 | 343,000 | ||||||
8.750% due 01/15/20 | 500,000 | 515,000 | ||||||
Seadrill Ltd (Bermuda) | 550,000 | 550,688 | ||||||
Summit Midstream Holdings LLC | 500,000 | 491,250 | ||||||
Tervita Corp (Canada) | ||||||||
8.000% due 11/15/18 ~ | 150,000 | 151,875 | ||||||
10.875% due 02/15/18 ~ | 250,000 | 250,938 | ||||||
The Williams Cos Inc | ||||||||
3.700% due 01/15/23 | 1,500,000 | 1,419,782 | ||||||
4.550% due 06/24/24 | 150,000 | 148,721 | ||||||
Transocean Inc (Cayman) | ||||||||
3.800% due 10/15/22 | 400,000 | 367,828 | ||||||
6.375% due 12/15/21 | 250,000 | 266,363 | ||||||
|
| |||||||
17,039,168 | ||||||||
|
|
Principal | Value | |||||||
Financials - 9.4% | ||||||||
AerCap Ireland Capital Ltd (Ireland) | $250,000 | $249,375 | ||||||
Duke Realty LP REIT | ||||||||
3.875% due 02/15/21 | 1,000,000 | 1,031,494 | ||||||
4.375% due 06/15/22 | 250,000 | 261,409 | ||||||
Hockey Merger Sub 2 Inc | 550,000 | 565,812 | ||||||
Host Hotels & Resorts LP REIT | ||||||||
3.750% due 10/15/23 | 500,000 | 495,488 | ||||||
4.750% due 03/01/23 | 500,000 | 531,654 | ||||||
6.000% due 10/01/21 | 1,250,000 | 1,425,950 | ||||||
JPMorgan Chase & Co | 1,100,000 | 1,077,816 | ||||||
Liberty Mutual Group Inc | ||||||||
4.250% due 06/15/23 ~ | 350,000 | 358,449 | ||||||
4.950% due 05/01/22 ~ | 750,000 | 808,910 | ||||||
Morgan Stanley | 1,350,000 | 1,330,301 | ||||||
Nuveen Investments Inc | 450,000 | 483,750 | ||||||
Ocwen Financial Corp | 450,000 | 435,375 | ||||||
Prudential Financial Inc | 550,000 | 555,844 | ||||||
Senior Housing Properties Trust REIT | ||||||||
4.750% due 05/01/24 | 500,000 | 505,157 | ||||||
6.750% due 04/15/20 | 1,000,000 | 1,140,457 | ||||||
6.750% due 12/15/21 | 250,000 | 288,939 | ||||||
Synchrony Financial | 1,000,000 | 1,010,069 | ||||||
The Howard Hughes Corp | 500,000 | 518,750 | ||||||
|
| |||||||
13,074,999 | ||||||||
|
| |||||||
Health Care - 3.9% | ||||||||
CHS/Community Health Systems Inc | ||||||||
6.875% due 02/01/22 ~ | 400,000 | 419,000 | ||||||
7.125% due 07/15/20 | 400,000 | 424,000 | ||||||
8.000% due 11/15/19 | 250,000 | 267,550 | ||||||
DJO Finance LLC | 500,000 | 505,000 | ||||||
HCA Inc | 1,500,000 | 1,640,625 | ||||||
Jaguar Holding Co I | 500,000 | 506,250 | ||||||
JLL/Delta Dutch Newco BV (Netherlands) | 350,000 | 354,813 | ||||||
Prospect Medical Holdings Inc | 500,000 | 539,375 | ||||||
Tenet Healthcare Corp | ||||||||
5.000% due 03/01/19 ~ | 250,000 | 247,500 | ||||||
6.000% due 10/01/20 | 50,000 | 53,000 | ||||||
8.000% due 08/01/20 | 50,000 | 52,875 | ||||||
8.125% due 04/01/22 | 400,000 | 440,000 | ||||||
|
| |||||||
5,449,988 | ||||||||
|
| |||||||
Industrials - 10.6% | ||||||||
AAF Holdings LLC | 475,000 | 477,375 | ||||||
Air Lease Corp | ||||||||
4.250% due 09/15/24 | 1,000,000 | 986,250 | ||||||
4.750% due 03/01/20 | 1,550,000 | 1,650,750 | ||||||
BAE Systems Holdings Inc | 400,000 | 397,908 | ||||||
British Airways Pass-Through Trust ‘B’ (United Kingdom) | 1,508,992 | 1,607,077 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-28 |
A-13
PACIFIC LIFE FUNDS
PL STRATEGIC INCOME FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal | Value | |||||||
BWAY Holding Co | $750,000 | $757,500 | ||||||
Ceridian LLC | 50,000 | 50,187 | ||||||
HD Supply Inc | ||||||||
7.500% due 07/15/20 | 500,000 | 521,250 | ||||||
11.500% due 07/15/20 | 1,000,000 | 1,156,250 | ||||||
International Lease Finance Corp | 1,200,000 | 1,290,000 | ||||||
Modular Space Corp | 550,000 | 556,875 | ||||||
Nortek Inc | 1,245,000 | 1,344,600 | ||||||
Owens Corning | �� | |||||||
4.200% due 12/15/22 | 500,000 | 509,849 | ||||||
9.000% due 06/15/19 | 700,000 | 855,953 | ||||||
Roofing Supply Group LLC | 250,000 | 265,000 | ||||||
The ADT Corp | 500,000 | 518,750 | ||||||
TMS International Corp | 450,000 | 472,500 | ||||||
United Airlines Pass-Through Trust ‘B’ | ||||||||
4.625% due 09/03/22 | 500,000 | 497,500 | ||||||
4.750% due 04/11/22 | 150,000 | 151,800 | ||||||
Valmont Industries Inc | 750,000 | 735,327 | ||||||
|
| |||||||
14,802,701 | ||||||||
|
| |||||||
Information Technology - 0.7% | ||||||||
Blackboard Inc | 575,000 | 572,125 | ||||||
BMC Software Inc | 100,000 | 99,000 | ||||||
Infor Software Parent LLC | 300,000 | 298,500 | ||||||
|
| |||||||
969,625 | ||||||||
|
| |||||||
Materials - 13.9% | ||||||||
AK Steel Corp | ||||||||
7.625% due 05/15/20 | 1,250,000 | 1,240,625 | ||||||
7.625% due 10/01/21 | 300,000 | 291,000 | ||||||
8.375% due 04/01/22 | 400,000 | 402,000 | ||||||
ArcelorMittal (Luxembourg) | ||||||||
7.250% due 03/01/41 | 600,000 | 609,000 | ||||||
7.500% due 10/15/39 | 250,000 | 258,750 | ||||||
Ardagh Finance Holdings SA (Luxembourg) | 700,000 | 707,000 | ||||||
Ardagh Packaging Finance PLC (Ireland) | ||||||||
6.250% due 01/31/19 ~ | 500,000 | 496,250 | ||||||
6.750% due 01/31/21 ~ | 500,000 | 501,250 | ||||||
7.000% due 11/15/20 ~ | 79,412 | 80,603 | ||||||
Berry Plastics Corp | ||||||||
5.500% due 05/15/22 | 350,000 | 337,313 | ||||||
9.750% due 01/15/21 | 830,000 | 923,375 | ||||||
Beverage Packaging Holdings Luxembourg II SA | 600,000 | 592,500 | ||||||
Cliffs Natural Resources Inc | 350,000 | 302,750 | ||||||
Coveris Holdings SA (Luxembourg) | 500,000 | 525,000 | ||||||
Fibria Overseas Finance Ltd (Cayman) | 500,000 | 494,375 | ||||||
FMG Resources Property Ltd (Australia) | ||||||||
6.875% due 02/01/18 ~ | 500,000 | 515,000 | ||||||
8.250% due 11/01/19 ~ | 750,000 | 778,125 | ||||||
Freeport-McMoRan Inc | 500,000 | 489,159 |
Principal | Value | |||||||
Glencore Finance Canada Ltd (Canada) | $1,400,000 | $1,405,743 | ||||||
Glencore Funding LLC | 1,250,000 | 1,239,689 | ||||||
Hexion U.S. Finance Corp | 750,000 | 757,500 | ||||||
INEOS Group Holdings SA (Luxembourg) | 750,000 | 740,625 | ||||||
Mustang Merger Corp | 500,000 | 520,000 | ||||||
Reliance Steel & Aluminum Co | 750,000 | 772,550 | ||||||
Samarco Mineracao SA (Brazil) | 500,000 | 515,250 | ||||||
Sappi Papier Holding GmbH (Austria) | ||||||||
7.750% due 07/15/17 ~ | 400,000 | 430,000 | ||||||
8.375% due 06/15/19 ~ | 350,000 | 378,875 | ||||||
Tronox Finance LLC | 300,000 | 303,000 | ||||||
Vale Overseas Ltd (Cayman) | 1,250,000 | �� | 1,265,413 | |||||
Wise Metals Group LLC | 600,000 | 643,500 | ||||||
Wise Metals Intermediate Holdings LLC | 150,000 | 159,562 | ||||||
Yamana Gold Inc (Canada) | 650,000 | 648,477 | ||||||
|
| |||||||
19,324,259 | ||||||||
|
| |||||||
Telecommunication Services - 3.8% | ||||||||
Digicel Group Ltd (Bermuda) | 750,000 | 776,325 | ||||||
Intelsat Jackson Holdings SA (Luxembourg) | 250,000 | 255,000 | ||||||
Intelsat Luxembourg SA (Luxembourg) | 1,600,000 | 1,638,000 | ||||||
Qwest Corp | 850,000 | 976,043 | ||||||
Sprint Communications Inc | 250,000 | 261,875 | ||||||
Sprint Corp | 1,350,000 | 1,409,062 | ||||||
|
| |||||||
5,316,305 | ||||||||
|
| |||||||
Utilities - 0.5% | ||||||||
NRG Energy Inc | ||||||||
6.250% due 07/15/22 ~ | 100,000 | 103,063 | ||||||
6.625% due 03/15/23 | 150,000 | 155,625 | ||||||
RJS Power Holdings LLC | 500,000 | 497,500 | ||||||
|
| |||||||
756,188 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes | 93,258,857 | |||||||
|
| |||||||
SENIOR LOAN NOTES - 24.6% | ||||||||
Consumer Discretionary - 8.1% | ||||||||
Bombardier Recreational Products Inc Term B | 750,000 | 738,277 | ||||||
Burlington Coat Factory Warehouse Corp Term B-3 | 1,000,000 | 993,329 | ||||||
CEC Entertainment Inc Term B | 498,747 | 485,031 | ||||||
Charter Communications Operating LLC Term E | 496,231 | 482,206 | ||||||
Clear Channel Communications Tranche D | 500,000 | 478,281 | ||||||
ClubCorp Club Operations Inc | 1,000,000 | 996,250 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-28 |
A-14
PACIFIC LIFE FUNDS
PL STRATEGIC INCOME FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal | Value | |||||||
Federal Mogul Corp Tranche C | $750,000 | $744,643 | ||||||
Las Vegas Sands LLC Term B | 1,000,000 | 994,583 | ||||||
PFS Holding Corp (1st Lien) | 248,750 | 207,706 | ||||||
Seminole Tribe of Florida | 949,527 | 945,670 | ||||||
Spin Holdco Inc (1st Lien) | 993,744 | 979,614 | ||||||
The Brickman Group Ltd LLC (2nd Lien) | 750,000 | 741,875 | ||||||
The Neiman Marcus Group Inc | 998,747 | 983,141 | ||||||
The Servicemaster Co LLC | 750,000 | 740,035 | ||||||
Tribune Co | 783,797 | 774,729 | ||||||
|
| |||||||
11,285,370 | ||||||||
|
| |||||||
Consumer Staples - 1.4% | ||||||||
Albertson’s LLC | | 346,511 | | | 345,830 | | ||
Term B-4 4.500% due 08/25/21 § | 500,000 | 498,073 | ||||||
BJ’s Wholesale Club Inc (2nd Lien) | 250,000 | 252,656 | ||||||
New Albertsons Inc Term B | 250,000 | 246,531 | ||||||
Reddy Ice Corp Term B (1st Lien) | 593,487 | 563,813 | ||||||
|
| |||||||
1,906,903 | ||||||||
|
| |||||||
Energy - 3.2% | ||||||||
American Energy-Marcellus LLC (2nd Lien) | 750,000 | 746,719 | ||||||
Expro Finservices SARL | 500,000 | 498,750 | ||||||
HGIM Corp Term B | 744,987 | 734,977 | ||||||
Paragon Offshore Finance Co | 1,000,000 | 952,500 | ||||||
Samson Investment Co Tranche 1 (2nd Lien) | 1,250,000 | 1,217,344 | ||||||
Seadrill Operating LP | 248,747 | 237,020 | ||||||
|
| |||||||
4,387,310 | ||||||||
|
| |||||||
Financials - 1.0% | ||||||||
Nuveen Investments Inc Tranche B (1st Lien) | 750,000 | 748,907 | ||||||
ROC Finance LLC Term B | 496,241 | 478,252 | ||||||
Stockbridge/SBE Holdings LLC Tranche B | 175,000 | 189,875 | ||||||
|
| |||||||
1,417,034 | ||||||||
|
| |||||||
Health Care - 2.1% | ||||||||
CHS/Community Health Systems Inc Term D | 397,000 | 396,330 | ||||||
Iasis Healthcare LLC Term B-2 | 343,875 | 343,230 | ||||||
JLL/Delta Dutch Newco BV (Netherlands) | 249,375 | 244,833 | ||||||
Ortho-Clinical Diagnostics Holdings SARL | 748,125 | 740,995 |
Principal | Value | |||||||
PharMEDium Healthcare Corp (1st Lien) | $485,000 | $476,512 | ||||||
Surgery Center Holdings Inc | 750,000 | 748,125 | ||||||
|
| |||||||
2,950,025 | ||||||||
|
| |||||||
Industrials - 3.4% | ||||||||
Doosan Infracore International Inc Tranche B | 748,125 | 749,995 | ||||||
Gates Global LLC | ||||||||
due 07/05/21 µ | 250,000 | 246,161 | ||||||
4.250% due 07/05/21 § | 750,000 | 738,482 | ||||||
GYP Holdings III Corp (1st Lien) | 1,248,125 | 1,235,644 | ||||||
Husky Injection Molding Systems Ltd | 498,099 | 492,246 | ||||||
MRC Global | 346,500 | 346,717 | ||||||
Ply Gem Industries Inc | 497,500 | 489,623 | ||||||
Sensata Technologies BV Term B | 495,000 | 492,878 | ||||||
|
| |||||||
4,791,746 | ||||||||
|
| |||||||
Information Technology - 2.2% | ||||||||
Activision Blizzard | 923,750 | 922,852 | ||||||
Avago Technologies Cayman Ltd | 997,500 | 989,751 | ||||||
BMC Software Finance Inc | 239,444 | 235,962 | ||||||
Infor Inc Tranche B-5 | 986,611 | 965,522 | ||||||
|
| |||||||
3,114,087 | ||||||||
|
| |||||||
Materials - 3.2% | ||||||||
BWAY Intermediate Co Inc | 1,000,000 | 1,002,500 | ||||||
FMG Resources Property Ltd | 1,241,861 | 1,218,058 | ||||||
Mauser Holding GmbH (2nd Lien) | 250,000 | 248,125 | ||||||
Ranpak Corp (2nd Lien) | 250,000 | 255,313 | ||||||
Tronox Inc Term B (Netherlands) | 745,198 | 740,955 | ||||||
Univar Inc Term B | 993,561 | 985,074 | ||||||
|
| |||||||
4,450,025 | ||||||||
|
| |||||||
Total Senior Loan Notes | 34,302,500 | |||||||
|
| |||||||
MORTGAGE-BACKED SECURITIES - 0.2% | ||||||||
Collateralized Mortgage Obligations - Commercial - 0.2% |
| |||||||
Hilton USA Trust | 250,000 | 250,391 | ||||||
|
| |||||||
Total Mortgage-Backed Securities | 250,391 | |||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-28 |
A-15
PACIFIC LIFE FUNDS
PL STRATEGIC INCOME FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal | Value | |||||||
ASSET-BACKED SECURITIES - 1.1% | ||||||||
Financials - 1.1% |
| |||||||
Carlyle Global Market Strategies CLO Ltd | $750,000 | $745,492 | ||||||
Race Point VI CLO Ltd | 750,000 | 742,055 | ||||||
|
| |||||||
1,487,547 | ||||||||
|
| |||||||
Total Asset-Backed Securities | 1,487,547 | |||||||
|
| |||||||
Shares | ||||||||
SHORT-TERM INVESTMENT - 3.8% | ||||||||
Money Market Fund - 3.8% |
| |||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 5,381,805 | 5,381,805 | ||||||
|
| |||||||
Total Short-Term Investment | 5,381,805 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 102.5% (Cost $144,687,894) | 142,813,943 | |||||||
OTHER ASSETS & LIABILITIES, Net - (2.5%) | (3,534,353 | ) | ||||||
|
| |||||||
NET ASSETS - 100.0% | $139,279,590 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Corporate Bonds & Notes | 66.9% | |||
Senior Loan Notes | 24.6% | |||
Short-Term Investment | 3.8% | |||
Common Stocks | 3.8% | |||
Others (each less than 3.0%) | 3.4% | �� | ||
|
| |||
102.5% | ||||
Other Assets & Liabilities, Net | (2.5%) | |||
|
| |||
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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Convertible Preferred Stocks | |||||||||||||||||
Energy | $163,299 | $— | $163,299 | $— | ||||||||||||||
Health Care | 521,381 | 521,381 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
684,680 | 521,381 | 163,299 | — | |||||||||||||||
Common Stocks (1) | 5,268,318 | 5,268,318 | — | — | ||||||||||||||
Closed-End Mutual Funds | 2,179,845 | 2,179,845 | — | — | ||||||||||||||
Corporate Bonds & Notes | 93,258,857 | — | 92,609,557 | 649,300 | ||||||||||||||
Senior Loan Notes | 34,302,500 | — | 34,094,794 | 207,706 | ||||||||||||||
Mortgage-Backed Securities | 250,391 | — | 250,391 | — | ||||||||||||||
Asset-Backed Securities | 1,487,547 | — | 1,487,547 | — | ||||||||||||||
Short-Term Investment | 5,381,805 | 5,381,805 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $142,813,943 | $13,351,349 | $128,605,588 | $857,006 | ||||||||||||||
|
|
|
|
|
|
|
|
(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-28 |
A-16
PACIFIC LIFE FUNDS
PL FLOATING RATE INCOME FUND
Schedule of Investments
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
CORPORATE BONDS & NOTES - 2.6% | ||||||||
Consumer Staples - 1.6% | ||||||||
Reynolds Group Issuer Inc | ||||||||
5.750% due 10/15/20 | $13,750,000 | $14,059,374 | ||||||
9.000% due 04/15/19 | 1,000,000 | 1,046,250 | ||||||
9.875% due 08/15/19 | 500,000 | 540,625 | ||||||
|
| |||||||
15,646,249 | ||||||||
|
| |||||||
Industrials - 0.3% | ||||||||
US Airways Pass-Through Trust ‘B’ | 3,000,000 | 3,107,100 | ||||||
|
| |||||||
Materials - 0.3% | ||||||||
Hexion US Finance Corp | 3,000,000 | 3,030,000 | ||||||
|
| |||||||
Telecommunication Services - 0.4% | ||||||||
Intelsat Luxembourg SA (Luxembourg) | 3,000,000 | 3,071,250 | ||||||
8.125% due 06/01/23 | 1,000,000 | 1,047,500 | ||||||
|
| |||||||
4,118,750 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes | 25,902,099 | |||||||
|
| |||||||
SENIOR LOAN NOTES - 97.3% | ||||||||
Consumer Discretionary - 28.9% | ||||||||
24 hour Fitness Worldwide | 4,488,750 | 4,483,112 | ||||||
Advantage Sales & Marketing Inc (1st Lien) | ||||||||
3.580% due 07/23/21 § | 80,645 | 79,360 | ||||||
4.250% due 07/23/21 § | 4,838,710 | 4,761,595 | ||||||
Affinia Group Inc Tranche B-2 | 2,442,606 | 2,445,660 | ||||||
Burger King Worldwide Inc Term B | 12,000,000 | 11,923,332 | ||||||
Burlington Coat Factory Warehouse Corp Term B-3 | 3,102,548 | 3,081,851 | ||||||
Caesars Entertainment Resort Properties LLC | ||||||||
Term B due 10/11/20 µ | 3,000,000 | 2,880,750 | ||||||
7.000% due 10/11/20 § | 16,872,500 | 16,201,818 | ||||||
Caesars Growth Properties Holdings LLC | 4,488,750 | 4,265,435 | ||||||
CEC Entertainment Inc Term B | 15,298,125 | 14,877,427 | ||||||
Charter Communications Term G | 6,500,000 | 6,488,391 | ||||||
Clear Channel Communications Inc | 11,436,491 | 10,939,724 | ||||||
ClubCorp Club Operation Inc | 7,000,000 | 6,973,750 | ||||||
4.000% due 07/24/20 § | 11,591,636 | 11,548,167 | ||||||
CS Intermediate Holdco LLC | 2,992,500 | 2,962,575 | ||||||
Federal-Mogul Corp Tranche C | 13,500,000 | 13,403,570 | ||||||
Golden Nugget Inc | ||||||||
5.500% due 11/05/19 § | 9,386,107 | 9,503,434 | ||||||
5.500% due 11/21/19 § | 4,022,617 | 4,072,900 | ||||||
Interactive Data Corp | 8,229,375 | 8,193,371 |
Principal Amount | Value | |||||||
Jo-Ann Stores LLC Term B | $ 7,949,634 | $ 7,661,460 | ||||||
Leonardo Acquisition Corp (1st Lien) | 13,167,500 | 13,002,906 | ||||||
Leslie’s Poolmart Inc Tranche B | 11,074,441 | 10,936,010 | ||||||
Michaels Stores Inc | 11,250,000 | 11,129,063 | ||||||
Midas Intermediate Holding Co | 2,246,835 | 2,239,464 | ||||||
Nine West Holdings Inc | ||||||||
4.750% due 10/08/19 § | 7,165,957 | 6,968,894 | ||||||
6.250% due 01/08/20 § | 4,250,000 | 4,009,165 | ||||||
Oceania Cruises Inc Term B-1 | 11,673,041 | 11,702,223 | ||||||
PFS Holding Corp (1st Lien) | 3,731,250 | 3,115,594 | ||||||
Pilot Travel Centers LLC | 2,000,000 | 1,990,000 | ||||||
Playa Resorts Holding BV (Netherlands) | 9,413,694 | 9,296,022 | ||||||
Scientific Games International Term B2 | 1,500,000 | 1,470,938 | ||||||
Spin Holdco Inc (1st Lien) | 13,393,806 | 13,203,360 | ||||||
The Brickman Group Ltd LLC |
| 6,467,418 |
| 6,347,952 | ||||
(2nd Lien) | 9,333,333 | 9,232,225 | ||||||
The Neiman Marcus Group Inc | 16,876,444 | 16,612,749 | ||||||
The ServiceMaster Co | 8,500,000 | 8,387,061 | ||||||
Tribune Co | 6,749,179 | 6,671,098 | ||||||
Yonkers Racing Corp | ||||||||
(1st Lien) | ||||||||
4.250% due 08/20/19 § | 3,871,032 | 3,503,284 | ||||||
(2nd Lien) | ||||||||
8.750% due 08/20/20 § | 500,000 | 402,500 | ||||||
|
| |||||||
286,968,190 | ||||||||
|
| |||||||
Consumer Staples - 9.4% | ||||||||
Albertson’s LLC | 7,418,684 | 7,404,113 | ||||||
Term B-3 4.000% due 08/23/19 § | 3,000,000 | 2,981,250 | ||||||
Term B-4 4.500% due 08/25/21 § | 12,500,000 | 12,451,825 | ||||||
Ardent Medical Services Inc Term B | 6,467,500 | 6,467,500 | ||||||
Arysta LifeScience SPC LLC | ||||||||
(1st Lien) | ||||||||
4.500% due 05/29/20 § | 7,658,077 | 7,650,097 | ||||||
(2nd Lien) | ||||||||
8.250% due 11/30/20 § | 3,500,000 | 3,536,460 | ||||||
BJ’s Wholesale Club Inc | ||||||||
(1st Lien) | ||||||||
4.500% due 09/26/19 § | 1,970,134 | 1,942,342 | ||||||
(2nd Lien) | ||||||||
8.500% due 03/26/20 § | 5,450,000 | 5,507,906 | ||||||
New Albertson’s Inc Term B | 8,250,000 | 8,135,531 | ||||||
Performance Food Group Inc (2nd Lien) | 4,937,500 | 4,943,672 | ||||||
Reddy Ice Corp Term B (1st Lien) | 10,355,953 | 9,838,155 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-28 |
A-17
PACIFIC LIFE FUNDS
PL FLOATING RATE INCOME FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
Rite Aid Corp | ||||||||
Tranche 1 (2nd Lien) | ||||||||
5.750% due 08/21/20 § | $ 7,860,930 | $ 7,986,218 | ||||||
Tranche 2 | ||||||||
4.875% due 06/21/20 § | 1,500,000 | 1,503,282 | ||||||
Smart & Final Inc (1st Lien) | ||||||||
4.750% due 11/15/19 § | 6,427,672 | 6,400,887 | ||||||
US Foods Inc | 6,912,500 | 6,893,062 | ||||||
|
| |||||||
93,642,300 | ||||||||
|
| |||||||
Energy - 8.2% | ||||||||
American Energy-Marcellus LLC (1st Lien) | 3,500,000 | 3,479,585 | ||||||
Crestwood Holdings LLC Term B-1 | 6,386,728 | 6,469,225 | ||||||
Drillships Ocean Ventures Inc | 3,750,000 | 3,625,781 | ||||||
Expro Finservices SARL | 8,750,000 | 8,728,125 | ||||||
Fieldwood Energy LLC (2nd Lien) | 7,200,000 | 7,239,002 | ||||||
HGIM Corp Term B | 15,604,906 | 15,395,223 | ||||||
Moxie Liberty LLC Term B-1 | 1,500,000 | 1,537,500 | ||||||
Moxie Patriot LLC Term B-1 | 2,250,000 | 2,306,250 | ||||||
Paragon Offshore Finance Co | 1,500,000 | 1,428,750 | ||||||
Samson Investment Co Tranche 1 (2nd Lien) | 18,850,882 | 18,358,403 | ||||||
Seadrill Operating LP (Bermuda) | 13,668,018 | 13,023,667 | ||||||
|
| |||||||
81,591,511 | ||||||||
|
| |||||||
Financials - 8.4% | ||||||||
Amwins Group (1st Lien) | 9,863,487 | 9,863,487 | ||||||
First Data Corp | ||||||||
3.655% due 03/24/18 § | 2,750,000 | 2,701,303 | ||||||
3.655% due 09/24/18 § | 1,000,000 | 981,875 | ||||||
HUB International Ltd | 15,092,280 | 14,814,023 | ||||||
Nuveen Investments Inc Tranche B | ||||||||
(1st Lien) | ||||||||
4.157% due 05/13/17 § | 9,808,343 | 9,794,042 | ||||||
(2nd Lien) | ||||||||
6.500% due 02/28/19 § | 9,500,000 | 9,535,625 | ||||||
RE/MAX LLC | 6,238,517 | 6,203,425 | ||||||
Stockbridge/SBE Holdings LLC Tranche B | 7,700,000 | 8,354,500 | ||||||
TransUnion LLC | 5,223,750 | 5,154,102 | ||||||
USI Inc | 16,401,782 | 16,135,254 | ||||||
|
| |||||||
83,537,636 | ||||||||
|
| |||||||
Health Care - 1.6% | ||||||||
Catalent Pharma Solutions Inc | 4,987,500 | 4,980,822 | ||||||
CHS/Community Health Term D | 5,000,000 | 4,991,565 | ||||||
Par Pharmaceutical Cos Inc Term B-2 | 5,136,762 | 5,050,079 | ||||||
PharMEDium Healthcare Corp | 1,256,995 | 1,234,998 | ||||||
|
| |||||||
16,257,464 | ||||||||
|
|
Principal Amount | Value | |||||||
Industrials - 25.3% | ||||||||
AlixPartners LLP | $ 750,000 | $ 760,625 | ||||||
9.000% due 07/10/21 § | 9,800,000 | 9,938,837 | ||||||
Term B-2 (1st Lien) | ||||||||
4.000% due 07/10/20 § | 4,677,072 | 4,618,608 | ||||||
Allflex Holdings III Inc | ||||||||
(1st Lien) | ||||||||
4.250% due 07/17/20 § | 6,682,500 | 6,636,558 | ||||||
(2nd Lien) | ||||||||
8.000% due 07/19/21 § | 4,405,000 | 4,399,494 | ||||||
Allied Security Holdings LLC | ||||||||
(1st Lien) | ||||||||
4.250% due 02/12/21 § | 3,305,625 | 3,261,551 | ||||||
(2nd Lien) | ||||||||
8.000% due 08/13/21 § | 5,626,712 | 5,565,758 | ||||||
Apex Tool Group LLC | 5,663,750 | 5,479,678 | ||||||
Atkore International | 4,488,750 | 4,462,567 | ||||||
(2nd Lien) 7.750% due 10/09/21 § | 2,000,000 | 1,983,750 | ||||||
CAMP Systems | ||||||||
(1st Lien) | ||||||||
4.750% due 05/31/19 § | 4,962,208 | 4,965,309 | ||||||
(2nd Lien) | ||||||||
8.250% due 11/29/19 § | 500,000 | 505,313 | ||||||
Capital Safety North America Holdings Inc | 4,923,750 | 4,805,275 | ||||||
(2nd Lien) 6.500% due 03/28/22 § | 3,000,000 | 2,958,750 | ||||||
Ceridian Corp Term B1 | 3,555,803 | 3,549,136 | ||||||
CPI International Inc Term B | 1,990,000 | 1,975,905 | ||||||
Crosby US Acquisition Corp | ||||||||
(1st Lien) | ||||||||
3.750% due 11/23/20 § | 5,947,538 | 5,709,636 | ||||||
(2nd Lien) | ||||||||
7.000% due 11/22/21 § | 4,000,000 | 4,025,000 | ||||||
Doosan Infracore International Inc Tranche B | 10,972,500 | 10,999,931 | ||||||
Gates Global Inc | 4,750,000 | 4,677,054 | ||||||
4.250% due 07/25/21 § | 13,000,000 | 12,800,359 | ||||||
GYP Holdings III Corp | 8,730,625 | 8,643,319 | ||||||
(2nd Lien) 7.750% due 04/01/22 § | 3,500,000 | 3,517,500 | ||||||
Husky Injection Molding Systems Ltd | 1,000,000 | 988,250 | ||||||
(2nd Lien) 7.250% due 06/30/22 § | 1,250,000 | 1,228,125 | ||||||
Term B 4.250% due 06/30/21 § | 3,731,939 | 3,688,089 | ||||||
LM US Member LLC | ||||||||
4.750% due 10/25/19 § | 968,569 | 964,331 | ||||||
(1st Lien) | ||||||||
4.750% due 10/25/19 § | 14,357,189 | 14,294,376 | ||||||
(2nd Lien) | ||||||||
8.250% due 10/26/20 § | 8,125,000 | 8,135,156 | ||||||
Maxim Crane Works LP (2nd Lien) | 10,643,529 | 10,869,704 | ||||||
MRC Global | 9,751,500 | 9,757,595 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-28 |
A-18
PACIFIC LIFE FUNDS
PL FLOATING RATE INCOME FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
Neff Rental LLC (2nd Lien) | $ 4,500,000 | $ 4,502,813 | ||||||
North American Lifting Holdings Inc | ||||||||
(1st Lien) | ||||||||
due 11/30/18 µ | 750,000 | 753,750 | ||||||
5.500% due 11/27/20 § | 6,751,543 | 6,785,300 | ||||||
(2nd Lien) 10.000% due 11/26/21 § | 2,000,000 | 2,017,500 | ||||||
Ply Gem Industries Inc | 12,580,531 | 12,381,344 | ||||||
Rexnord LLC Term B | 14,146,776 | 13,946,358 | ||||||
Roofing Supply Group LLC | 9,377,957 | 9,288,088 | ||||||
SRS Distribution Inc | 4,446,225 | 4,453,174 | ||||||
Transdigm Inc | 11,355,528 | 11,187,852 | ||||||
Tranche D 3.750% due 06/04/21 § | 6,483,750 | 6,392,284 | ||||||
WTG Holdings III Corp | 10,860,590 | 10,785,923 | ||||||
(2nd Lien) 8.500% due 11/15/22 § | 3,250,000 | 3,245,938 | ||||||
|
| |||||||
251,905,863 | ||||||||
|
| |||||||
Information Technology - 1.7% | ||||||||
Applied Systems Inc | 496,250 | 491,784 | ||||||
(2nd Lien) 7.500% due 01/24/22 § | 7,120,000 | 7,121,481 | ||||||
Excelitas Technologies Corp Term B | 5,044,425 | 5,050,731 | ||||||
Kronos Worldwide Inc | 4,477,500 | 4,477,500 | ||||||
|
| |||||||
17,141,496 | ||||||||
|
| |||||||
Materials - 11.1% | ||||||||
Ardagh Holdings USA Inc | 17,275,095 | 17,037,563 | ||||||
Berry Plastic Corp Term E | 9,082,213 | 8,893,003 | ||||||
BWAY Intermediate Co Inc | 2,500,000 | 2,506,250 | ||||||
Term B 5.500% due 08/07/20 § | 13,715,625 | 13,749,914 | ||||||
Emerald Performance Materials LLC | 4,000,000 | 3,966,668 | ||||||
(2nd Lien) 7.750% due 08/01/22 § | 750,000 | 747,188 | ||||||
FMG Resources Property Ltd (Australia) | 10,778,008 | 10,571,426 | ||||||
MacDermid Inc Tranche B (1st Lien) | 1,500,000 | 1,481,250 | ||||||
Mauser Holding GmbH | 500,000 | 497,500 | ||||||
(2nd Lien) 8.250% due 07/31/22 § | 2,000,000 | 1,985,000 | ||||||
NewPage Corp Term B | 7,500,000 | 7,524,998 | ||||||
Nexeo Solutions LLC | 1,496,124 | 1,490,514 | ||||||
Term B-2 5.000% due 09/08/17 § | 1,741,117 | 1,728,058 | ||||||
Term B-3 5.000% due 09/08/17 § | 7,567,813 | 7,501,594 |
Principal Amount | Value | |||||||
Quikrete Holdings Inc (2nd Lien) | $ 4,250,000 | $ 4,289,844 | ||||||
Ranpak Corp | ||||||||
(1st Lien) | ||||||||
4.500% due 04/23/19 § | 1,425,016 | 1,432,141 | ||||||
(2nd Lien) | ||||||||
due 09/16/22 µ | 500,000 | 502,188 | ||||||
8.500% due 04/23/20 § | 3,153,118 | 3,220,122 | ||||||
Univar Inc Term B | 2,500,000 | 2,478,645 | ||||||
5.000% due 06/30/17 § | 18,606,284 | 18,447,349 | ||||||
|
| |||||||
110,051,215 | ||||||||
|
| |||||||
Telecommunication Services - 2.0% | ||||||||
Intelsat Jackson Holdings SA Term B-2 | 5,005,406 | 4,935,541 | ||||||
Level 3 Financing Inc | ||||||||
Tranche B | ||||||||
4.000% due 01/15/20 § | 11,300,000 | 11,114,612 | ||||||
Tranche B-III | ||||||||
4.000% due 08/01/19 § | 3,500,000 | 3,443,671 | ||||||
|
| |||||||
19,493,824 | ||||||||
|
| |||||||
Utilities - 0.7% | ||||||||
Power Borrower LLC | ||||||||
(1st Lien) | ||||||||
4.250% due 05/06/20 § | 5,084,909 | 4,995,277 | ||||||
(2nd Lien) | ||||||||
8.250% due 11/06/20 § | 1,500,000 | 1,462,500 | ||||||
|
| |||||||
6,457,777 | ||||||||
|
| |||||||
Total Senior Loan Notes | 967,047,276 | |||||||
|
| |||||||
Shares | ||||||||
SHORT-TERM INVESTMENT - 0.1% | ||||||||
Money Market Fund - 0.1% | ||||||||
BlackRock Liquidity Funds Treasury | 983,920 | 983,920 | ||||||
|
| |||||||
Total Short-Term Investment | 983,920 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 100.0% | 993,933,295 | |||||||
OTHER ASSETS & LIABILITIES, NET - (0.0%) | (133,070 | ) | ||||||
|
| |||||||
NET ASSETS - 100.0% | $993,800,225 | |||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-28 |
A-19
PACIFIC LIFE FUNDS
PL FLOATING RATE INCOME FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Consumer Discretionary | 28.9% | |||
Industrials | 25.6% | |||
Materials | 11.4% | |||
Consumer Staples | 11.0% | |||
Financials | 8.4% | |||
Energy | 8.2% | |||
Others (each less than 3.0%) | 6.5% | |||
|
| |||
100.0% | ||||
Other Assets & Liabilities, Net | (0.0% | ) | ||
|
| |||
100.0% | ||||
|
|
(b) | Pursuant to the terms of the following senior loan agreements, the fund had unfunded loan commitments of $332,342 or less than 0.1% of the net assets as of September 30, 2014, which could be extended at the option of the borrower: |
Borrower | Unfunded Loan Commitments | Value | Unrealized Appreciation (Depreciation) | |||||||||
Advantage Sales & Marketing Inc | $80,444 | $79,360 | ($1,084 | ) | ||||||||
Midas Intermediate Holding Co | 251,898 | 252,650 | 752 | |||||||||
|
|
|
|
|
| |||||||
$332,342 | $332,010 | ($332 | ) | |||||||||
|
|
|
|
|
|
(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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Corporate Bonds & Notes | $25,902,099 | $— | $25,902,099 | $— | |||||||||||||
Senior Loan Notes | 967,047,276 | — | 963,529,182 | 3,518,094 | ||||||||||||||
Short-Term Investment | 983,920 | 983,920 | — | — | ||||||||||||||
Unfunded Loan Commitment | 752 | — | 752 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Assets | 993,934,047 | 983,920 | 989,432,033 | 3,518,094 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Liabilities | Unfunded Loan Commitment | (1,084 | ) | — | (1,084 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities | (1,084 | ) | — | (1,084 | ) | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $993,932,963 | $983,920 | $989,430,949 | $3,518,094 | ||||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-28 |
A-20
PACIFIC LIFE FUNDS
PL LIMITED DURATION HIGH INCOME FUND
Schedule of Investments
September 30, 2014 (Unaudited)
Principal | Value | |||||||
CORPORATE BONDS & NOTES - 42.0% | ||||||||
Consumer Discretionary - 7.3% | ||||||||
Beazer Homes USA Inc | $450,000 | $427,500 | ||||||
Cablevision Systems Corp | 150,000 | 167,062 | ||||||
Cequel Communications Holdings I LLC | 400,000 | 413,500 | ||||||
Chrysler Group LLC | 250,000 | 273,750 | ||||||
iHeartCommunications Inc | 400,000 | 336,712 | ||||||
Landry’s Inc | 150,000 | 159,375 | ||||||
Lennar Corp | 300,000 | 298,125 | ||||||
Michaels FinCo Holdings LLC | 80,000 | 81,800 | ||||||
NCL Corp Ltd (Bermuda) | 150,000 | 152,250 | ||||||
NPC International Inc | 350,000 | 366,625 | ||||||
The Ryland Group Inc | 150,000 | 159,750 | ||||||
|
| |||||||
2,836,449 | ||||||||
|
| |||||||
Consumer Staples - 2.4% | ||||||||
Beverages & More Inc | 300,000 | 283,125 | ||||||
Reynolds Group Issuer Inc | ||||||||
8.250% due 02/15/21 | 250,000 | 265,625 | ||||||
9.875% due 08/15/19 | 200,000 | 216,250 | ||||||
Spectrum Brands Inc | 150,000 | 156,750 | ||||||
|
| |||||||
921,750 | ||||||||
|
| |||||||
Energy - 4.9% | ||||||||
Chaparral Energy Inc | 300,000 | 322,500 | ||||||
Halcon Resources Corp | 200,000 | 204,500 | ||||||
Linn Energy LLC | 350,000 | 344,750 | ||||||
Regency Energy Partners LP | 150,000 | 158,250 | ||||||
Samson Investment Co | 150,000 | 136,875 | ||||||
SandRidge Energy Inc | 300,000 | 294,000 | ||||||
Seadrill Ltd (Bermuda) | 200,000 | 200,250 | ||||||
Tervita Corp (Canada) | 250,000 | 253,125 | ||||||
|
| |||||||
1,914,250 | ||||||||
|
| |||||||
Financials - 2.9% | ||||||||
E*TRADE Financial Corp | 200,000 | 211,000 | ||||||
Jefferies Finance LLC | 200,000 | 205,500 | ||||||
Nuveen Investments Inc | 250,000 | 268,750 | ||||||
Ocwen Financial Corp | 450,000 | 435,375 | ||||||
|
| |||||||
1,120,625 | ||||||||
|
|
Principal | Value | |||||||
Health Care - 4.0% | ||||||||
Biomet Inc | $150,000 | $159,375 | ||||||
CHS/Community Health Systems Inc | 350,000 | 371,000 | ||||||
DaVita HealthCare Partners Inc | 150,000 | 156,000 | ||||||
DJO Finance LLC | 150,000 | 151,500 | ||||||
Tenet Healthcare Corp | ||||||||
5.000% due 03/01/19 ~ | 500,000 | 495,000 | ||||||
8.000% due 08/01/20 | 200,000 | 211,500 | ||||||
|
| |||||||
1,544,375 | ||||||||
|
| |||||||
Industrials - 5.6% | ||||||||
BWAY Holding Co | 200,000 | 202,000 | ||||||
Ceridian LLC | 50,000 | 50,187 | ||||||
HD Supply Inc | 300,000 | 346,875 | ||||||
Modular Space Corp | 300,000 | 303,750 | ||||||
Nortek Inc | 250,000 | 270,000 | ||||||
Roofing Supply Group LLC | 150,000 | 159,000 | ||||||
The Hertz Corp | 300,000 | 306,000 | ||||||
TransDigm Inc | 250,000 | 243,750 | ||||||
United Airlines Pass-Through Trust ‘B’ | 150,000 | 153,930 | ||||||
United Rentals North America Inc | 150,000 | 160,125 | ||||||
|
| |||||||
2,195,617 | ||||||||
|
| |||||||
Information Technology - 3.1% | ||||||||
Advanced Micro Devices Inc | 250,000 | 253,750 | ||||||
Blackboard Inc | 200,000 | 199,000 | ||||||
BMC Software Inc | 100,000 | 99,000 | ||||||
NXP BV (Netherlands) | 150,000 | 153,000 | ||||||
Sanmina Corp | 500,000 | 491,250 | ||||||
|
| |||||||
1,196,000 | ||||||||
|
| |||||||
Materials - 7.1% | ||||||||
AK Steel Corp | 250,000 | 248,125 | ||||||
Alphabet Holding Co Inc | 200,000 | 196,250 | ||||||
ArcelorMittal (Luxembourg) | 150,000 | 183,563 | ||||||
Ardagh Finance Holdings SA (Luxembourg) | 200,000 | 202,000 | ||||||
Ardagh Packaging Finance PLC (Ireland) | ||||||||
6.250% due 01/31/19 ~ | 200,000 | 198,500 | ||||||
9.125% due 10/15/20 ~ | 200,000 | 217,500 | ||||||
Coveris Holdings SA (Luxembourg) | 250,000 | 262,500 | ||||||
Hexion US Finance Corp | 150,000 | 151,500 | ||||||
Novelis Inc (Canada) | 250,000 | 268,438 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-28 |
A-21
PACIFIC LIFE FUNDS
PL LIMITED DURATION HIGH INCOME FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal | Value | |||||||
Sappi Papier Holding GmbH | $350,000 | $376,250 | ||||||
Tronox Finance LLC | 200,000 | 202,000 | ||||||
Wise Metals Group LLC | 250,000 | 268,125 | ||||||
|
| |||||||
2,774,751 | ||||||||
|
| |||||||
Telecommunication Services - 3.7% | ||||||||
CenturyLink Inc | 150,000 | 155,288 | ||||||
Hughes Satellite Systems Corp | 150,000 | 165,750 | ||||||
Intelsat Luxembourg SA (Luxembourg) | 200,000 | 204,750 | ||||||
Level 3 Financing Inc | 300,000 | 317,625 | ||||||
Sprint Communications Inc | 150,000 | 173,812 | ||||||
T-Mobile USA Inc | 150,000 | 156,188 | ||||||
WaveDivision Escrow LLC | 250,000 | 271,563 | ||||||
|
| |||||||
1,444,976 | ||||||||
|
| |||||||
Utilities - 1.0% | ||||||||
GenOn Energy Inc | 150,000 | 156,750 | ||||||
NRG Energy Inc | 200,000 | 220,500 | ||||||
|
| |||||||
377,250 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes | 16,326,043 | |||||||
|
| |||||||
SENIOR LOAN NOTES - 54.5% | ||||||||
Consumer Discretionary - 15.7% | ||||||||
Boyd Gaming Corp Term B | 238,542 | 235,411 | ||||||
Caesars Entertainment Resort Properties LLC Term B | 248,125 | 238,262 | ||||||
CCC Holdings Inc | 500,000 | 498,125 | ||||||
CEC Entertainment Inc Term B | 497,500 | 483,819 | ||||||
Charter Communications Operating LLC Term G | 750,000 | 750,000 | ||||||
Leonardo Acquisition Corp (1st Lien) | 497,500 | 491,281 | ||||||
Leslie’s Poolmart Inc Tranche B | 496,833 | 490,622 | ||||||
National Vision Inc (1st Lien) | 497,500 | 486,306 | ||||||
Nine West Holdings Inc | 498,750 | 485,034 | ||||||
Oceania Cruises Inc Term B-1 | 185,629 | 186,093 | ||||||
Playa Resorts Holding BV | 496,870 | 490,659 | ||||||
The Brickman Group Ltd LLC (2nd Lien) | 300,000 | 296,750 | ||||||
The Neiman Marcus Group Inc | 496,256 | 488,502 | ||||||
Tribune Co | 230,528 | 227,861 | ||||||
Tropicana Entertainment (1st Lien) | 247,500 | 243,169 | ||||||
|
| |||||||
6,091,894 | ||||||||
|
|
Principal | Value | |||||||
Consumer Staples - 6.2% | ||||||||
Albertson’s LLC | ||||||||
Term B-2 | ||||||||
4.750% due 03/21/19 § | $248,128 | $247,641 | ||||||
Term B-4 | ||||||||
4.500% due 08/25/21 § | 500,000 | 498,073 | ||||||
BJ’s Wholesale Club Inc (2nd Lien) | 250,000 | 252,656 | ||||||
Performance Food Group Inc (2nd Lien) | 246,875 | 247,184 | ||||||
Reddy Ice Corp Term B (1st Lien) | 495,605 | 470,824 | ||||||
Rite Aid Corp Tranche 2 | 250,000 | 250,547 | ||||||
Sprouts Farmers Markets Holdings LLC | 181,424 | 180,706 | ||||||
US Foods Inc | 246,875 | 246,181 | ||||||
|
| |||||||
2,393,812 | ||||||||
�� |
|
| ||||||
Energy - 6.3% | ||||||||
American Energy-Marcellus LLC (2nd Lien) | 250,000 | 248,906 | ||||||
Crestwood Holdings LLC Term B-1 | 244,100 | 247,253 | ||||||
Fieldwood Energy LLC (2nd Lien) | 750,000 | 754,063 | ||||||
HGIM Corp Term B | 247,500 | 244,174 | ||||||
Samson Investment Co Tranche 1 (2nd Lien) | 500,000 | 486,937 | ||||||
Seadrill Operating LP | 496,250 | 472,855 | ||||||
|
| |||||||
2,454,188 | ||||||||
|
| |||||||
Financials - 5.1% | ||||||||
Amwins Group (1st Lien) | 246,863 | 246,863 | ||||||
HUB International Ltd | 247,506 | 242,943 | ||||||
RE/MAX LLC | 231,056 | 229,757 | ||||||
SAM Finance Lux SARL (Luxembourg) | 248,125 | 247,350 | ||||||
Stockbridge/SBE Holdings LLC Tranche B | 650,000 | 705,250 | ||||||
USI Inc | 297,000 | 292,174 | ||||||
|
| |||||||
1,964,337 | ||||||||
|
| |||||||
Health Care - 2.7% | ||||||||
Biomet Inc Term B-2 | 232,409 | 231,211 | ||||||
CHS/Community Health Systems Inc Term D | 99,250 | 99,083 | ||||||
JLL/Delta Dutch Newco BV | 249,375 | 244,833 | ||||||
Ortho-Clinical Diagnostics (Luxembourg) | 498,750 | 493,996 | ||||||
|
| |||||||
1,069,123 | ||||||||
|
| |||||||
Industrials - 12.4% | ||||||||
Accudyne Industries LLC | 724,512 | 712,966 | ||||||
AlixPartners LLP | ||||||||
Term B-2 (1st Lien) | ||||||||
4.000% due 07/10/20 § | 246,875 | 243,789 | ||||||
(2nd Lien) | ||||||||
9.000% due 07/10/21 § | 200,000 | 202,833 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-28 |
A-22
PACIFIC LIFE FUNDS
PL LIMITED DURATION HIGH INCOME FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal | Value | |||||||
Bombardier Recreational Products Inc Term B | $500,000 | $492,185 | ||||||
Ceridian Corp Term B-1 | 118,527 | 118,304 | ||||||
Crosby US Acquisition Corp (1st Lien) | 497,494 | 477,594 | ||||||
Gates Global Inc | 500,000 | 492,322 | ||||||
LM US Member LLC | 9,520 | 9,478 | ||||||
(1st Lien) | ||||||||
4.750% due 10/25/19 § | 239,850 | 238,801 | ||||||
North American Lifting Holdings Inc (1st Lien) | 297,862 | 299,351 | ||||||
Ply Gem Industries Inc | 497,500 | 489,623 | ||||||
Rexnord LLC Term B | 247,500 | 243,994 | ||||||
Roofing Supply Group LLC | 497,462 | 492,695 | ||||||
WTG Holdings III Corp (1st Lien) | 297,750 | 295,703 | ||||||
|
| |||||||
4,809,638 | ||||||||
|
| |||||||
Information Technology - 1.2% | ||||||||
BMC Software Finance Inc | 239,444 | 235,962 | ||||||
Infor (US) Inc Tranche B-3 | 241,210 | 236,657 | ||||||
|
| |||||||
472,619 | ||||||||
|
| |||||||
Materials - 4.3% | ||||||||
FMG Resources Property Ltd (Australia) | 496,241 | 486,729 | ||||||
NewPage Corp Term B | 300,000 | 301,000 | ||||||
Nexeo Solutions LLC Term B-2 | 397,970 | 394,984 | ||||||
Quikrete Holdings Inc | ||||||||
(1st Lien) | ||||||||
4.000% due 09/28/20 § | 237,962 | 236,302 | ||||||
(2nd Lien) | ||||||||
7.000% due 03/26/21 § | 250,000 | 252,344 | ||||||
|
| |||||||
1,671,359 | ||||||||
|
|
Principal | Value | |||||||
Telecommunication Services - 0.6% | ||||||||
WaveDivision Holdings LLC | $248,106 | $245,832 | ||||||
|
| |||||||
Total Senior Loan Notes | 21,172,802 | |||||||
|
| |||||||
Shares | ||||||||
SHORT-TERM INVESTMENT - 3.8% | ||||||||
Money Market Fund - 3.8% | ||||||||
BlackRock Liquidity Funds Treasury | 1,498,516 | 1,498,516 | ||||||
|
| |||||||
Total Short-Term Investment | 1,498,516 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 100.3% | 38,997,361 | |||||||
OTHER ASSETS & LIABILITIES, NET - (0.3%) | (131,293 | ) | ||||||
|
| |||||||
NET ASSETS - 100.0% | $38,866,068 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Consumer Discretionary | 23.0% | |||
Industrials | 18.0% | |||
Materials | 11.4% | |||
Energy | 11.2% | |||
Consumer Staples | 8.6% | |||
Financials | 8.0% | |||
Health Care | 6.7% | |||
Telecommunication Services | 4.3% | |||
Information Technology | 4.3% | |||
Short-Term Investment | 3.8% | |||
Others (each less than 3.0%) | 1.0% | |||
|
| |||
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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Corporate Bonds & Notes | $16,326,043 | $— | $16,326,043 | $— | |||||||||||||
Senior Loan Notes | 21,172,802 | — | 21,172,802 | — | ||||||||||||||
Short-Term Investment | 1,498,516 | 1,498,516 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $38,997,361 | $1,498,516 | $37,498,845 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-28 |
A-23
PACIFIC LIFE FUNDS
PL HIGH INCOME FUND
Schedule of Investments
September 30, 2014 (Unaudited)
Shares | | |||||||
CONVERTIBLE PREFERRED STOCKS - 0.1% | ||||||||
Health Care - 0.1% | ||||||||
Amsurg Corp 5.250% * | 125 | $13,369 | ||||||
|
| |||||||
Total Convertible Preferred Stocks | 13,369 | |||||||
|
| |||||||
COMMON STOCKS - 1.8% | ||||||||
Consumer Discretionary - 0.7% | ||||||||
Cedar Fair LP | 1,585 | 74,923 | ||||||
Las Vegas Sands Corp | 985 | 61,277 | ||||||
MGM Resorts International * | 2,640 | 60,139 | ||||||
|
| |||||||
196,339 | ||||||||
|
| |||||||
Energy - 0.4% | ||||||||
Chesapeake Energy Corp | 2,460 | 56,555 | ||||||
Kinder Morgan Inc | 1,580 | 60,577 | ||||||
|
| |||||||
117,132 | ||||||||
|
| |||||||
Financials - 0.3% | ||||||||
Bank of America Corp | 4,400 | 75,020 | ||||||
|
| |||||||
Industrials - 0.4% | ||||||||
Air Lease Corp | 2,200 | 71,500 | ||||||
The Boeing Co | 470 | 59,869 | ||||||
|
| |||||||
131,369 | ||||||||
|
| |||||||
Total Common Stocks | 519,860 | |||||||
|
| |||||||
EXCHANGE-TRADED FUND - 0.6% | ||||||||
Highland/iBoxx Senior Loan | 8,800 | 171,424 | ||||||
|
| |||||||
Total Exchange-Traded Fund | 171,424 | |||||||
|
| |||||||
CLOSED-END MUTUAL FUNDS - 1.3% | ||||||||
Eaton Vance Senior Income Trust | 7,817 | 50,889 | ||||||
First Trust Senior Floating Rate Income Fund II | 4,464 | 60,532 | ||||||
Invesco Senior Income Trust | 25,324 | 120,289 | ||||||
Voya Prime Rate Trust | 24,020 | 132,110 | ||||||
|
| |||||||
363,820 | ||||||||
|
| |||||||
Total Closed-End Mutual Funds | 363,820 | |||||||
|
| |||||||
Principal | ||||||||
CORPORATE BONDS & NOTES - 92.7% | ||||||||
Consumer Discretionary - 20.8% | ||||||||
24 Hour Holdings III LLC | $150,000 | 139,500 | ||||||
99 Cents Only Stores | 100,000 | 109,000 | ||||||
Altice SA (Luxembourg) | 250,000 | 258,750 | ||||||
Beazer Homes USA Inc | ||||||||
5.750% due 06/15/19 | 75,000 | 71,250 | ||||||
7.250% due 02/01/23 | 100,000 | 100,000 | ||||||
7.500% due 09/15/21 | 150,000 | 153,375 | ||||||
Caesars Entertainment Operating Co Inc | ||||||||
9.000% due 02/15/20 | 175,000 | 136,062 | ||||||
11.250% due 06/01/17 | 100,000 | 77,625 |
Principal |
| |||||||
Caesars Entertainment Resort Properties LLC | ||||||||
8.000% due 10/01/20 ~ | $50,000 | $49,594 | ||||||
11.000% due 10/01/21 ~ | 200,000 | 188,500 | ||||||
Caesars Growth Properties Holdings LLC | 100,000 | 87,875 | ||||||
CBS Outdoor Americas Capital LLC | ||||||||
5.250% due 02/15/22 ~ | 75,000 | 75,094 | ||||||
5.875% due 03/15/25 ~ | 50,000 | 50,375 | ||||||
CCO Holdings LLC | 150,000 | 149,813 | ||||||
CEC Entertainment Inc | 250,000 | 235,000 | ||||||
Cedar Fair LP | ||||||||
5.250% due 03/15/21 | 175,000 | 173,250 | ||||||
5.375% due 06/01/24 ~ | 25,000 | 24,281 | ||||||
Cequel Communications Holdings I LLC | ||||||||
5.125% due 12/15/21 ~ | 50,000 | 48,062 | ||||||
6.375% due 09/15/20 ~ | 125,000 | 129,219 | ||||||
Clear Channel Worldwide Holdings Inc | ||||||||
6.500% due 11/15/22 | 73,000 | 75,008 | ||||||
7.625% due 03/15/20 | 125,000 | 130,312 | ||||||
Dana Holding Corp | ||||||||
6.500% due 02/15/19 | 50,000 | 52,125 | ||||||
6.750% due 02/15/21 | 150,000 | 158,437 | ||||||
DISH DBS Corp | ||||||||
5.125% due 05/01/20 | 50,000 | 50,250 | ||||||
6.750% due 06/01/21 | 50,000 | 53,875 | ||||||
Greektown Holdings LLC | 125,000 | 125,000 | ||||||
Hilton Worldwide Finance LLC | 150,000 | 154,781 | ||||||
Icahn Enterprises LP | 150,000 | 150,375 | ||||||
iHeartCommunications Inc | ||||||||
10.000% due 01/15/18 | 50,000 | 42,089 | ||||||
11.250% due 03/01/21 | 100,000 | 106,875 | ||||||
Jo-Ann Stores Inc | 175,000 | 167,125 | ||||||
Landry’s Holdings II Inc | 150,000 | 155,250 | ||||||
Landry’s Inc | 50,000 | 53,125 | ||||||
Live Nation Entertainment Inc | 210,000 | 210,000 | ||||||
MGM Resorts International | 150,000 | 160,125 | ||||||
Michaels FinCo Holdings LLC | 48,000 | 49,080 | ||||||
Michaels Stores Inc | 25,000 | 24,937 | ||||||
Neiman Marcus Group Ltd LLC | ||||||||
8.000% due 10/15/21 ~ | 50,000 | 52,250 | ||||||
8.750% PIK due 10/15/21 ~ | 275,000 | 290,812 | ||||||
NPC International Inc | 150,000 | 157,125 | ||||||
Penn National Gaming Inc | 175,000 | 161,875 | ||||||
Sinclair Television Group Inc | ||||||||
5.375% due 04/01/21 | 50,000 | 49,500 | ||||||
6.375% due 11/01/21 | 100,000 | 102,750 | ||||||
Standard Pacific Corp | 250,000 | 255,937 | ||||||
The Ryland Group Inc | ||||||||
5.375% due 10/01/22 | 100,000 | 98,000 | ||||||
6.625% due 05/01/20 | 75,000 | 79,875 | ||||||
The ServiceMaster Co | 114,000 | 121,125 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-28 |
A-24
PACIFIC LIFE FUNDS
PL HIGH INCOME FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal |
| |||||||
Virgin Media Secured Finance PLC (United Kingdom) | $200,000 | $202,500 | ||||||
Wolverine World Wide Inc | 125,000 | 131,250 | ||||||
|
| |||||||
5,878,393 | ||||||||
|
| |||||||
Consumer Staples - 4.5% | ||||||||
Beverages & More Inc | 75,000 | 70,781 | ||||||
JBS Investments GmbH (Austria) | 200,000 | 213,500 | ||||||
JBS USA LLC | 100,000 | 105,500 | ||||||
Post Holdings Inc | 150,000 | 138,000 | ||||||
Reynolds Group Issuer Inc | ||||||||
8.250% due 02/15/21 | 100,000 | 106,250 | ||||||
9.000% due 04/15/19 | 200,000 | 209,250 | ||||||
9.875% due 08/15/19 | 125,000 | 135,156 | ||||||
Rite Aid Corp | ||||||||
6.750% due 06/15/21 | 100,000 | 102,750 | ||||||
9.250% due 03/15/20 | 50,000 | 54,750 | ||||||
The WhiteWave Foods Co | 125,000 | 126,563 | ||||||
|
| |||||||
1,262,500 | ||||||||
|
| |||||||
Energy - 16.5% | ||||||||
Alpha Natural Resources Inc | 100,000 | 61,000 | ||||||
American Energy-Woodford LLC | 25,000 | 23,313 | ||||||
American Energy-Permian Basin LLC | ||||||||
7.125% due 11/01/20 ~ | 75,000 | 69,000 | ||||||
7.375% due 11/01/21 ~ | 50,000 | 46,000 | ||||||
Arch Coal Inc | ||||||||
7.250% due 10/01/20 | 50,000 | 27,375 | ||||||
7.250% due 06/15/21 | 50,000 | 24,375 | ||||||
Athlon Holdings LP | 125,000 | 134,375 | ||||||
Atlas Pipeline Partners LP | ||||||||
5.875% due 08/01/23 | 50,000 | 49,125 | ||||||
6.625% due 10/01/20 | 100,000 | 102,750 | ||||||
Baytex Energy Corp (Canada) | 100,000 | 98,000 | ||||||
Calumet Specialty Products Partners LP | 100,000 | 95,500 | ||||||
Chaparral Energy Inc | 150,000 | 161,250 | ||||||
Crestwood Midstream Partners LP | 175,000 | 176,313 | ||||||
Energy XXI Gulf Coast Inc | 125,000 | 117,813 | ||||||
Halcon Resources Corp | ||||||||
8.875% due 05/15/21 | 125,000 | 123,750 | ||||||
9.750% due 07/15/20 | 200,000 | 204,500 | ||||||
Hercules Offshore Inc | ||||||||
6.750% due 04/01/22 ~ | 50,000 | 39,188 | ||||||
7.500% due 10/01/21 ~ | 100,000 | 81,000 | ||||||
Hiland Partners LP | ||||||||
5.500% due 05/15/22 ~ | 25,000 | 24,375 | ||||||
7.250% due 10/01/20 ~ | 225,000 | 239,625 | ||||||
Hilcorp Energy I LP | 100,000 | 105,750 | ||||||
Kodiak Oil & Gas Corp (Canada) | 50,000 | 50,500 | ||||||
Linn Energy LLC | ||||||||
6.500% due 05/15/19 | 75,000 | 73,875 | ||||||
6.500% due 09/15/21 | 50,000 | 49,000 | ||||||
MEG Energy Corp (Canada) | ||||||||
6.375% due 01/30/23 ~ | 50,000 | 50,875 | ||||||
6.500% due 03/15/21 ~ | 200,000 | 206,000 |
Principal |
| |||||||
Memorial Resource Development Corp | $175,000 | $171,500 | ||||||
Pioneer Energy Services Corp | 100,000 | 99,250 | ||||||
QEP Resources Inc | 150,000 | 163,500 | ||||||
Regency Energy Partners LP | ||||||||
5.000% due 10/01/22 | 50,000 | 49,438 | ||||||
5.750% due 09/01/20 | 200,000 | 209,500 | ||||||
RSP Permian Inc | 25,000 | 25,188 | ||||||
Sabine Pass Liquefaction LLC | 200,000 | 206,500 | ||||||
Samson Investment Co | 125,000 | 114,062 | ||||||
Sanchez Energy Corp | ||||||||
6.125% due 01/15/23 ~ | 50,000 | 49,695 | ||||||
7.750% due 06/15/21 | 125,000 | 134,375 | ||||||
SandRidge Energy Inc | 265,000 | 259,700 | ||||||
Seadrill Ltd (Bermuda) | 250,000 | 250,313 | ||||||
Summit Midstream Holdings LLC | 150,000 | 147,375 | ||||||
Tervita Corp (Canada) | ||||||||
8.000% due 11/15/18 ~ | 75,000 | 75,938 | ||||||
10.875% due 02/15/18 ~ | 25,000 | 25,094 | ||||||
Triangle USA Petroleum Corp | 100,000 | 98,125 | ||||||
WPX Energy Inc | 125,000 | 129,063 | ||||||
|
| |||||||
4,643,243 | ||||||||
|
| |||||||
Financials - 4.5% | ||||||||
First Data Corp | ||||||||
10.625% due 06/15/21 | 32,000 | 36,560 | ||||||
12.625% due 01/15/21 | 175,000 | 210,000 | ||||||
Hockey Merger Sub 2 Inc | 150,000 | 154,312 | ||||||
Jefferies Finance LLC | 200,000 | 205,500 | ||||||
Navient Corp | 75,000 | 75,187 | ||||||
Nuveen Investments Inc | ||||||||
9.125% due 10/15/17 ~ | 75,000 | 80,625 | ||||||
9.500% due 10/15/20 ~ | 75,000 | 87,375 | ||||||
Ocwen Financial Corp | 125,000 | 120,937 | ||||||
RHP Hotel Properties LP REIT | 100,000 | 98,000 | ||||||
The Howard Hughes Corp | 200,000 | 207,500 | ||||||
|
| |||||||
1,275,996 | ||||||||
|
| |||||||
Health Care - 10.5% | ||||||||
Aviv Healthcare Properties LP | 75,000 | 77,719 | ||||||
Biomet Inc | ||||||||
6.500% due 08/01/20 | 75,000 | 79,687 | ||||||
6.500% due 10/01/20 | 50,000 | 52,625 | ||||||
Capsugel SA (Luxembourg) | 175,000 | 174,891 | ||||||
CHS/Community Health Systems Inc | ||||||||
6.875% due 02/01/22 ~ | 275,000 | 288,063 | ||||||
8.000% due 11/15/19 | 125,000 | 133,775 | ||||||
DJO Finance LLC | 100,000 | 101,000 | ||||||
Endo Finance LLC | 75,000 | 74,250 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-28 |
A-25
PACIFIC LIFE FUNDS
PL HIGH INCOME FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal |
| |||||||
Fresenius Medical Care US Finance II Inc | $100,000 | $106,500 | ||||||
Grifols Worldwide Operations Ltd (Ireland) | 200,000 | 198,000 | ||||||
HCA Holdings Inc | 325,000 | 341,250 | ||||||
HCA Inc | 100,000 | 109,375 | ||||||
HealthSouth Corp | 50,000 | 51,250 | ||||||
Jaguar Holding Co I | 150,000 | 151,875 | ||||||
JLL/Delta Dutch Newco BV (Netherlands) | 100,000 | 101,375 | ||||||
LifePoint Hospitals Inc | 200,000 | 203,500 | ||||||
Prospect Medical Holdings Inc | 175,000 | 188,781 | ||||||
Tenet Healthcare Corp | ||||||||
4.750% due 06/01/20 | 50,000 | 49,875 | ||||||
5.000% due 03/01/19 ~ | 75,000 | 74,250 | ||||||
6.000% due 10/01/20 | 127,000 | 134,620 | ||||||
8.000% due 08/01/20 | 100,000 | 105,750 | ||||||
8.125% due 04/01/22 | 150,000 | 165,000 | ||||||
|
| |||||||
2,963,411 | ||||||||
|
| |||||||
Industrials - 12.5% | ||||||||
AAF Holdings LLC | 100,000 | 100,500 | ||||||
ADS Waste Holdings Inc | 175,000 | 183,312 | ||||||
Air Canada Pass-Through Trust ‘B’ (Canada) | 96,159 | 96,284 | ||||||
Allegion US Holding Co Inc | 100,000 | 102,500 | ||||||
Amsted Industries Inc | 25,000 | 24,375 | ||||||
Apex Tool Group LLC | 75,000 | 69,375 | ||||||
BWAY Holding Co | 150,000 | 151,500 | ||||||
Ceridian LLC | 25,000 | 25,094 | ||||||
CPG Merger Sub LLC | 150,000 | 152,625 | ||||||
HD Supply Inc | ||||||||
8.125% due 04/15/19 | 50,000 | 54,250 | ||||||
11.500% due 07/15/20 | 150,000 | 173,437 | ||||||
International Lease Finance Corp | ||||||||
4.625% due 04/15/21 | 100,000 | 99,437 | ||||||
6.250% due 05/15/19 | 150,000 | 161,250 | ||||||
Masco Corp | 75,000 | 86,338 | ||||||
Modular Space Corp | 150,000 | 151,875 | ||||||
Nortek Inc | 145,000 | 156,600 | ||||||
Roofing Supply Group LLC | 125,000 | 132,500 | ||||||
The ADT Corp | 275,000 | 285,312 | ||||||
The Hertz Corp | 100,000 | 102,000 | ||||||
TMS International Corp | 175,000 | 183,750 | ||||||
TransDigm Inc | ||||||||
5.500% due 10/15/20 | 275,000 | 268,125 | ||||||
6.000% due 07/15/22 ~ | 25,000 | 24,719 |
Principal |
| |||||||
United Airlines Pass-Through Trust ‘B’ | ||||||||
4.625% due 03/03/24 | $100,000 | $99,500 | ||||||
4.750% due 10/11/23 | 75,000 | 75,900 | ||||||
5.375% due 02/15/23 | 50,000 | 51,310 | ||||||
United Rentals North America Inc | 200,000 | 219,500 | ||||||
US Airways Pass-Through Trust ‘B’ | 50,000 | 51,785 | ||||||
USG Corp | 200,000 | 205,000 | ||||||
Virgin Australia Trust ‘B’ (Australia) | 45,663 | 47,106 | ||||||
|
| |||||||
3,535,259 | ||||||||
|
| |||||||
Information Technology - 4.4% | ||||||||
Advanced Micro Devices Inc | 150,000 | 152,250 | ||||||
Blackboard Inc | 175,000 | 174,125 | ||||||
BMC Software Finance Inc | 50,000 | 48,250 | ||||||
BMC Software Inc | 139,000 | 137,610 | ||||||
Cardtronics Inc | 100,000 | 99,000 | ||||||
Entegris Inc | 75,000 | 76,500 | ||||||
Equinix Inc | ||||||||
4.875% due 04/01/20 | 150,000 | 149,250 | ||||||
5.375% due 04/01/23 | 25,000 | 24,875 | ||||||
Freescale Semiconductor Inc | ||||||||
5.000% due 05/15/21 ~ | 50,000 | 49,375 | ||||||
6.000% due 01/15/22 ~ | 25,000 | 25,438 | ||||||
Infor Software Parent LLC | 100,000 | 99,500 | ||||||
NXP BV (Netherlands) | 200,000 | 204,000 | ||||||
|
| |||||||
1,240,173 | ||||||||
|
| |||||||
Materials - 12.1% | ||||||||
AK Steel Corp | ||||||||
7.625% due 10/01/21 | 50,000 | 48,500 | ||||||
8.375% due 04/01/22 | 175,000 | 175,875 | ||||||
Alphabet Holding Co Inc | 225,000 | 220,781 | ||||||
ArcelorMittal (Luxembourg) | ||||||||
6.000% due 03/01/21 | 200,000 | 211,000 | ||||||
7.250% due 03/01/41 | 50,000 | 50,750 | ||||||
Ardagh Packaging Finance PLC (Ireland) | ||||||||
6.250% due 01/31/19 ~ | 200,000 | 198,500 | ||||||
7.000% due 11/15/20 ~ | 17,647 | 17,912 | ||||||
Berry Plastics Corp | 150,000 | 144,563 | ||||||
Beverage Packaging Holdings Luxembourg II SA (Luxembourg) | 75,000 | 74,063 | ||||||
Coveris Holdings SA (Luxembourg) | 200,000 | 210,000 | ||||||
FMG Resources Property Ltd (Australia) | 175,000 | 181,563 | ||||||
Hexion US Finance Corp | ||||||||
6.625% due 04/15/20 | 75,000 | 75,750 | ||||||
9.000% due 11/15/20 | 175,000 | 167,562 | ||||||
INEOS Group Holdings SA (Luxembourg) | 200,000 | 197,500 | ||||||
Louisiana-Pacific Corp | 175,000 | 187,250 | ||||||
Mustang Merger Corp | 150,000 | 156,000 | ||||||
Novelis Inc (Canada) | 200,000 | 214,750 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-28 |
A-26
PACIFIC LIFE FUNDS
PL HIGH INCOME FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal |
| |||||||
Sappi Papier Holding GmbH (Austria) | $175,000 | $189,437 | ||||||
Sealed Air Corp | 100,000 | 111,500 | ||||||
TPC Group Inc | 150,000 | 160,125 | ||||||
Tronox Finance LLC | 203,000 | 205,030 | ||||||
Wise Metals Group LLC | 125,000 | 134,062 | ||||||
Wise Metals Intermediate Holdings LLC | 75,000 | 79,781 | ||||||
|
| |||||||
3,412,254 | ||||||||
|
| |||||||
Telecommunication Services - 3.7% | ||||||||
Cogent Communications Finance Inc | 100,000 | 98,750 | ||||||
Digicel Ltd (Bermuda) | 150,000 | 155,250 | ||||||
Hughes Satellite Systems Corp | 200,000 | 221,000 | ||||||
Level 3 Financing Inc | ||||||||
6.125% due 01/15/21 ~ | 75,000 | 77,531 | ||||||
7.000% due 06/01/20 | 150,000 | 158,812 | ||||||
T-Mobile USA Inc | ||||||||
6.250% due 04/01/21 | 115,000 | 116,581 | ||||||
6.633% due 04/28/21 | 200,000 | 205,750 | ||||||
|
| |||||||
1,033,674 | ||||||||
|
| |||||||
Utilities - 3.2% | ||||||||
Calpine Corp | ||||||||
5.375% due 01/15/23 | 150,000 | 145,688 | ||||||
5.875% due 01/15/24 ~ | 100,000 | 104,000 | ||||||
6.000% due 01/15/22 ~ | 100,000 | 105,750 | ||||||
GenOn Energy Inc | 125,000 | 130,625 | ||||||
NRG Energy Inc | 268,000 | 276,208 | ||||||
RJS Power Holdings LLC | 150,000 | 149,250 | ||||||
|
| |||||||
911,521 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes | 26,156,424 | |||||||
|
|
| | |||||||
SHORT-TERM INVESTMENT - 1.7% | ||||||||
Money Market Fund - 1.7% | ||||||||
BlackRock Liquidity Funds Treasury | 480,186 | $480,186 | ||||||
|
| |||||||
Total Short-Term Investment | 480,186 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 98.2% | 27,705,083 | |||||||
OTHER ASSETS & LIABILITIES, NET - 1.8% | 500,426 | |||||||
|
| |||||||
NET ASSETS - 100.0% | $28,205,509 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Consumer Discretionary | 21.5% | |||
Energy | 16.9% | |||
Industrials | 12.9% | |||
Materials | 12.1% | |||
Health Care | 10.6% | |||
Financials | 4.8% | |||
Consumer Staples | 4.5% | |||
Information Technology | 4.4% | |||
Telecommunication Services | 3.7% | |||
Utilities | 3.2% | |||
Others (each less than 3.0%) | 3.6% | |||
|
| |||
98.2% | ||||
Other Assets & Liabilities, Net | 1.8% | |||
|
| |||
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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Convertible Preferred Stocks (1) | $13,369 | $13,369 | $— | $— | |||||||||||||
Common Stocks (1) | 519,860 | 519,860 | — | — | ||||||||||||||
Exchange-Traded Fund | 171,424 | 171,424 | — | — | ||||||||||||||
Closed-End Mutual Funds | 363,820 | 363,820 | — | — | ||||||||||||||
Corporate Bonds & Notes | 26,156,424 | — | 25,981,024 | 175,400 | ||||||||||||||
Short-Term Investment | 480,186 | 480,186 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $27,705,083 | $1,548,659 | $25,981,024 | $175,400 | ||||||||||||||
|
|
|
|
|
|
|
|
(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-28 |
A-27
PACIFIC LIFE FUNDS
Schedule of Investments (Continued)
Explanation of Symbols and Terms
September 30, 2014 (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. | |
~ | 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, 2014. 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. | |
Other Abbreviations: | ||
PIK | Payment-In-Kind | |
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-28
PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
September 30, 2014 (Unaudited)
PL Portfolio Optimization | ||||||||||||||||||||||||||||
Conservative Fund | Moderate- Conservative Fund | Moderate Fund | Moderate- Aggressive Fund | Aggressive Fund | PL Diversified Alternatives Fund | |||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Investments in affiliated mutual funds, at cost | $394,753,891 | $501,988,578 | $1,343,572,825 | $867,949,619 | $231,881,618 | $3,361,966 | ||||||||||||||||||||||
Investments in affiliated mutual funds, at value | $430,251,402 | $577,731,061 | $1,628,638,537 | $1,111,662,265 | $321,237,034 | $3,410,660 | ||||||||||||||||||||||
Receivables: | ||||||||||||||||||||||||||||
Fund shares sold | 1,563,308 | 875,608 | 2,541,122 | 1,611,090 | 1,202,433 | 58,191 | ||||||||||||||||||||||
Due from adviser | 33,602 | 41,652 | 105,796 | 73,357 | 25,284 | — | ||||||||||||||||||||||
Prepaid expenses and other assets | 3,715 | 7,385 | 13,077 | 9,965 | 5,535 | 34,131 | ||||||||||||||||||||||
Total Assets | 431,852,027 | 578,655,706 | 1,631,298,532 | 1,113,356,677 | 322,470,286 | 3,502,982 | ||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||||||
Fund shares redeemed | 636,801 | 980,932 | 3,477,920 | 1,092,572 | 302,476 | — | ||||||||||||||||||||||
Securities purchased | 507,663 | 48,746 | 270,446 | 534,478 | 402,971 | 58,191 | ||||||||||||||||||||||
Accrued advisory fees | 71,118 | 95,784 | 271,339 | 186,018 | 54,099 | 511 | ||||||||||||||||||||||
Accrued administration fees | 53,338 | 71,838 | 203,504 | 139,513 | 40,574 | 384 | ||||||||||||||||||||||
Accrued support service expenses | — | 594 | 2,873 | 2,067 | 541 | 3 | ||||||||||||||||||||||
Accrued custodian fees and expenses | 42 | 42 | 42 | 42 | 42 | 42 | ||||||||||||||||||||||
Accrued transfer agency out-of-pocket expenses | 50,070 | 64,183 | 176,755 | 123,029 | 35,192 | 29 | ||||||||||||||||||||||
Accrued legal, audit and tax service fees | 29,027 | 35,663 | 99,440 | 67,324 | 19,611 | 121 | ||||||||||||||||||||||
Accrued trustees’ fees and expenses and deferred compensation | 2,112 | 2,065 | 5,099 | 3,313 | 883 | — | ||||||||||||||||||||||
Accrued distribution and/or service fees | 46,912 | 59,686 | 159,665 | 108,951 | 30,916 | 101 | ||||||||||||||||||||||
Accrued other | 19,696 | 22,766 | 60,166 | 41,624 | 13,569 | 2,695 | ||||||||||||||||||||||
Total Liabilities | 1,416,779 | 1,382,299 | 4,727,249 | 2,298,931 | 900,874 | 62,077 | ||||||||||||||||||||||
NET ASSETS | $430,435,248 | $577,273,407 | $1,626,571,283 | $1,111,057,746 | $321,569,412 | $3,440,905 | ||||||||||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||||||||||||||
Paid-in capital | $393,649,619 | $502,536,835 | $1,340,813,893 | $888,523,500 | $260,380,479 | $3,393,868 | ||||||||||||||||||||||
Accumulated net investment loss | (2,992,601 | ) | (4,170,792 | ) | (7,380,101 | ) | (4,517,424 | ) | (101,500 | ) | (73 | ) | ||||||||||||||||
Undistributed/accumulated net realized gain (loss) | 4,280,719 | 3,164,881 | 8,071,779 | (16,660,976 | ) | (28,064,983 | ) | (1,584 | ) | |||||||||||||||||||
Net unrealized appreciation on investments | 35,497,511 | 75,742,483 | 285,065,712 | 243,712,646 | 89,355,416 | 48,694 | ||||||||||||||||||||||
NET ASSETS | $430,435,248 | $577,273,407 | $1,626,571,283 | $1,111,057,746 | $321,569,412 | $3,440,905 | ||||||||||||||||||||||
Class A Shares: | ||||||||||||||||||||||||||||
Net Assets | $172,811,509 | $274,411,871 | $826,495,031 | $576,186,532 | $167,030,187 | $1,025,169 | ||||||||||||||||||||||
Shares of beneficial interest outstanding | 15,060,801 | 21,544,664 | 57,898,560 | 38,311,149 | 10,789,470 | 99,539 | ||||||||||||||||||||||
Net Asset Value per share* | $11.47 | $12.74 | $14.27 | $15.04 | $15.48 | $10.30 | ||||||||||||||||||||||
Sales Charge (1) | 0.67 | 0.74 | 0.83 | 0.88 | 0.90 | 0.60 | ||||||||||||||||||||||
Maximum offering price per share | $12.14 | $13.48 | $15.10 | $15.92 | $16.38 | $10.90 | ||||||||||||||||||||||
Class B Shares: | ||||||||||||||||||||||||||||
Net Assets | $38,197,248 | $52,070,337 | $157,627,550 | $119,061,508 | $36,493,792 | |||||||||||||||||||||||
Shares of beneficial interest outstanding | 3,385,652 | 4,144,350 | 11,157,173 | 8,010,780 | 2,410,312 | |||||||||||||||||||||||
Net Asset Value per share* | $11.28 | $12.56 | $14.13 | $14.86 | $15.14 | |||||||||||||||||||||||
Class C Shares: | ||||||||||||||||||||||||||||
Net Assets | $198,113,089 | $237,957,516 | $588,091,749 | $385,830,878 | $104,093,775 | $220,791 | ||||||||||||||||||||||
Shares of beneficial interest outstanding | 17,567,640 | 18,946,243 | 41,682,871 | 26,016,335 | 6,879,796 | 21,565 | ||||||||||||||||||||||
Net Asset Value per share* | $11.28 | $12.56 | $14.11 | $14.83 | $15.13 | $10.24 | ||||||||||||||||||||||
Class R Shares: | ||||||||||||||||||||||||||||
Net Assets | $12,129,710 | $6,742,133 | $29,352,571 | $21,823,407 | $8,863,760 | �� | ||||||||||||||||||||||
Shares of beneficial interest outstanding | 1,062,977 | 531,780 | 2,062,271 | 1,454,478 | 576,264 | |||||||||||||||||||||||
Net Asset Value per share | $11.41 | $12.68 | $14.23 | $15.00 | $15.38 | |||||||||||||||||||||||
Advisor Class: | ||||||||||||||||||||||||||||
Net Assets | $9,183,692 | $6,091,550 | $25,004,382 | $8,155,421 | $5,087,898 | $2,194,945 | ||||||||||||||||||||||
Shares of beneficial interest outstanding | 799,134 | 477,454 | 1,749,335 | 541,370 | 328,078 | 212,786 | ||||||||||||||||||||||
Net Asset Value per share | $11.49 | $12.76 | $14.29 | $15.06 | $15.51 | $10.32 |
* | Redemption price per share is equal to the Net Asset Value per share less any applicable contingent deferred sales charge. |
(1) | The Class A shares of the PL Portfolio Optimization Funds and the PL Diversified Alternatives Fund 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, 2014 (Unaudited)
PL Short Duration Income Fund | PL Income Fund | PL Strategic Income Fund | PL Floating Rate Income Fund | PL Limited Duration High Income Fund | PL High Income Fund | |||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Investments, at cost | $135,547,594 | $465,860,033 | $144,687,894 | $1,005,748,639 | $39,576,905 | $28,082,256 | ||||||||||||||||||||||
Investments, at value | $135,439,147 | $469,008,696 | $142,813,943 | $993,933,295 | $38,997,361 | $27,705,083 | ||||||||||||||||||||||
Foreign currency held, at value (1) | — | — | 5,948 | — | — | 743 | ||||||||||||||||||||||
Receivables: | ||||||||||||||||||||||||||||
Dividends and interest | 678,529 | 4,171,205 | 1,744,168 | 25,103,844 | 497,073 | 544,508 | ||||||||||||||||||||||
Fund shares sold | 466,181 | 3,496,259 | 1,102,835 | 4,687,483 | 140,000 | 81,164 | ||||||||||||||||||||||
Securities sold | 832,251 | 9,892,037 | 5,018,888 | 77,244,557 | 39,703 | 25,313 | ||||||||||||||||||||||
Due from adviser | 23,543 | 77,105 | 23,853 | 196,799 | 7,976 | 9,911 | ||||||||||||||||||||||
Prepaid expenses and other assets | 26,027 | 13,105 | 26,456 | 26,680 | 173 | 25,486 | ||||||||||||||||||||||
Total Assets | 137,465,678 | 486,658,407 | 150,736,091 | 1,101,192,658 | 39,682,286 | 28,392,208 | ||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||||||
Fund shares redeemed | 507,113 | 1,896,490 | 415,449 | 29,697,471 | 9,755 | 22,626 | ||||||||||||||||||||||
Securities purchased | 5,734,718 | 12,267,251 | 10,856,772 | 76,229,519 | 750,000 | 128,850 | ||||||||||||||||||||||
Income distributions | 21,570 | 122,973 | 48,619 | 360,747 | 5,051 | 1,270 | ||||||||||||||||||||||
Accrued advisory fees | 41,108 | 193,001 | 69,382 | 552,758 | 20,137 | 14,061 | ||||||||||||||||||||||
Accrued administration fees | 30,701 | 115,674 | 34,453 | 242,048 | 6,829 | 5,851 | ||||||||||||||||||||||
Accrued support service expenses | 571 | 182 | 294 | 3,907 | 260 | 243 | ||||||||||||||||||||||
Accrued custodian fees and expenses | 890 | 4,234 | 548 | 11,065 | 975 | 145 | ||||||||||||||||||||||
Accrued transfer agency out-of-pocket expenses | 6,621 | 49,375 | 8,856 | 112,761 | 1,350 | 1,633 | ||||||||||||||||||||||
Accrued legal, audit and tax service fees | 5,434 | 29,223 | 3,603 | 59,779 | 2,139 | 1,614 | ||||||||||||||||||||||
Accrued distribution and/or service fees | 6,991 | 32,319 | 8,097 | 47,837 | 1,112 | 1,305 | ||||||||||||||||||||||
Accrued other | 9,222 | 22,649 | 10,428 | 74,209 | 18,610 | 9,101 | ||||||||||||||||||||||
Unfunded loan commitment depreciation | — | — | — | 332 | — | — | ||||||||||||||||||||||
Total Liabilities | 6,364,939 | 14,733,371 | 11,456,501 | 107,392,433 | 816,218 | 186,699 | ||||||||||||||||||||||
NET ASSETS | $131,100,739 | $471,925,036 | $139,279,590 | $993,800,225 | $38,866,068 | $28,205,509 | ||||||||||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||||||||||||||
Paid-in capital | $130,917,219 | $470,267,328 | $139,536,623 | $1,003,558,452 | $39,233,884 | $28,179,044 | ||||||||||||||||||||||
Undistributed net investment income | 6,289 | 37,223 | 12,019 | 113,803 | 5,034 | 4,212 | ||||||||||||||||||||||
Undistributed/accumulated net realized gain (loss) | 285,678 | (1,528,178 | ) | 1,605,591 | 1,943,646 | 206,694 | 399,471 | |||||||||||||||||||||
Net unrealized appreciation (depreciation) on investments | (108,447 | ) | 3,148,663 | (1,874,643 | ) | (11,815,676 | ) | (579,544 | ) | (377,218 | ) | |||||||||||||||||
NET ASSETS | $131,100,739 | $471,925,036 | $139,279,590 | $993,800,225 | $38,866,068 | $28,205,509 | ||||||||||||||||||||||
Class A Shares: | ||||||||||||||||||||||||||||
Net Assets | $52,542,849 | $199,794,486 | $49,019,356 | $284,600,208 | $10,448,448 | $8,664,846 | ||||||||||||||||||||||
Shares of beneficial interest outstanding | 5,045,457 | 18,683,395 | 4,437,864 | 27,523,554 | 1,048,141 | 795,435 | ||||||||||||||||||||||
Net Asset Value per share* | $10.41 | $10.69 | $11.05 | $10.34 | $9.97 | $10.89 | ||||||||||||||||||||||
Sales Charge (2) | 0.32 | 0.47 | 0.49 | 0.32 | 0.31 | 0.48 | ||||||||||||||||||||||
Maximum offering price per share | $10.73 | $11.16 | $11.54 | $10.66 | $10.28 | $11.37 | ||||||||||||||||||||||
Class C Shares: | ||||||||||||||||||||||||||||
Net Assets | $29,706,822 | $146,984,423 | $37,763,460 | $218,243,210 | $4,171,845 | $5,825,849 | ||||||||||||||||||||||
Shares of beneficial interest outstanding | 2,857,511 | 13,743,767 | 3,424,395 | 21,139,828 | 419,379 | 535,275 | ||||||||||||||||||||||
Net Asset Value per share* | $10.40 | $10.69 | $11.03 | $10.32 | $9.95 | $10.88 | ||||||||||||||||||||||
Class I Shares: | ||||||||||||||||||||||||||||
Net Assets | $1,069,967 | $1,049,566 | $1,918,879 | $105,106,408 | $22,205,757 | $9,445,491 | ||||||||||||||||||||||
Shares of beneficial interest outstanding | 102,874 | 98,049 | 174,591 | 10,148,342 | 2,227,917 | 873,613 | ||||||||||||||||||||||
Net Asset Value per share | $10.40 | $10.70 | $10.99 | $10.36 | $9.97 | $10.81 | ||||||||||||||||||||||
Class P Shares: | ||||||||||||||||||||||||||||
Net Assets | $429,470 | |||||||||||||||||||||||||||
Shares of beneficial interest outstanding | 41,488 | |||||||||||||||||||||||||||
Net Asset Value Per Share | $10.35 | |||||||||||||||||||||||||||
Advisor Class: | ||||||||||||||||||||||||||||
Net Assets | $47,781,101 | $124,096,561 | $50,577,895 | $385,420,929 | $2,040,018 | $4,269,323 | ||||||||||||||||||||||
Shares of beneficial interest outstanding | 4,587,848 | 11,581,163 | 4,578,077 | 37,166,472 | 204,806 | 391,657 | ||||||||||||||||||||||
Net Asset Value per share | $10.41 | $10.72 | $11.05 | $10.37 | $9.96 | $10.90 |
* | Redemption price per share is equal to the Net Asset Value per share less any applicable contingent deferred sales charge. |
(1) | The cost of foreign currency for the PL Strategic Income and PL High Income Funds was $6,639 and $788, respectively. |
(2) | Class A shares of the PL Short Duration Income, PL Floating Rate Income and PL Limited Duration High Income Funds are subject to a maximum 3.00% front-end sales charge. 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. |
See Notes to Financial Statements
B-2
PACIFIC LIFE FUNDS
FOR THE SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2014 (Unaudited)
PL Portfolio Optimization | ||||||||||||||||||||||||||||
Conservative Fund | Moderate- Conservative Fund | Moderate Fund | Moderate- Aggressive Fund | Aggressive Fund | PL Diversified Alternatives Fund | |||||||||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||||||||||
Dividends from affiliated mutual fund investments (1) | $— | $— | $— | $— | $— | $6,441 | ||||||||||||||||||||||
Total Investment Income | — | — | — | — | — | 6,441 | ||||||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||||||
Advisory fees | 442,899 | 578,271 | 1,635,500 | 1,113,383 | 324,230 | 2,258 | ||||||||||||||||||||||
Administration fees | 332,174 | 433,704 | 1,226,625 | 835,037 | 243,173 | 1,694 | ||||||||||||||||||||||
Support services expenses | 34,744 | 42,480 | 118,256 | 79,559 | 23,041 | 144 | ||||||||||||||||||||||
Custodian fees and expenses | 42 | 42 | 42 | 42 | 42 | 42 | ||||||||||||||||||||||
Shareholder report expenses | 24,106 | 29,513 | 79,927 | 54,455 | 16,805 | 49 | ||||||||||||||||||||||
Distribution and/or service fees (2) | ||||||||||||||||||||||||||||
Class A | 230,344 | 346,974 | 1,043,183 | 718,195 | 209,915 | 168 | ||||||||||||||||||||||
Class B | 195,882 | 263,511 | 796,947 | 606,395 | 188,310 | |||||||||||||||||||||||
Class C | 1,005,048 | 1,181,490 | 2,942,256 | 1,945,969 | 531,404 | 294 | ||||||||||||||||||||||
Class R | 28,807 | 18,099 | 75,955 | 54,209 | 21,564 | |||||||||||||||||||||||
Transfer agency out-of-pocket expenses | 56,229 | 70,684 | 195,913 | 134,440 | 37,827 | 92 | ||||||||||||||||||||||
Registration fees | 50,141 | 48,626 | 79,399 | 62,128 | 42,530 | 1,896 | ||||||||||||||||||||||
Legal, audit and tax service fees | 30,467 | 37,761 | 105,484 | 70,992 | 20,522 | 126 | ||||||||||||||||||||||
Trustees’ fees and expenses | 7,983 | 9,727 | 27,034 | 18,177 | 5,258 | 32 | ||||||||||||||||||||||
Offering expenses | — | — | — | — | — | 43,003 | ||||||||||||||||||||||
Other | 9,611 | 11,737 | 27,284 | 20,122 | 6,654 | 35 | ||||||||||||||||||||||
Total Expenses | 2,448,477 | 3,072,619 | 8,353,805 | 5,713,103 | 1,671,275 | 49,833 | ||||||||||||||||||||||
Adviser Expense Reimbursement (3) | (213,322 | ) | (250,870 | ) | (635,774 | ) | (440,209 | ) | (152,680 | ) | (42,596 | ) | ||||||||||||||||
Net Expenses | 2,235,155 | 2,821,749 | 7,718,031 | 5,272,894 | 1,518,595 | 7,237 | ||||||||||||||||||||||
NET INVESTMENT LOSS | (2,235,155 | ) | (2,821,749 | ) | (7,718,031 | ) | (5,272,894 | ) | (1,518,595 | ) | (796 | ) | ||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||||||||||
Net Realized Gain (Loss) On: | ||||||||||||||||||||||||||||
Investment security transactions in affiliated mutual funds | 4,842,366 | 1,751,426 | 3,151,484 | 3,692,023 | 709,991 | (1,540 | ) | |||||||||||||||||||||
Investment security transactions | 13 | 17 | 49 | 33 | 10 | — | ||||||||||||||||||||||
Net Realized Gain (Loss) | 4,842,379 | 1,751,443 | 3,151,533 | 3,692,056 | 710,001 | (1,540 | ) | |||||||||||||||||||||
Change In Net Unrealized Appreciation (Depreciation) On: | ||||||||||||||||||||||||||||
Investment securities in affiliated mutual funds | 3,919,312 | 11,515,256 | 35,304,623 | 21,729,075 | 5,568,931 | 50,127 | ||||||||||||||||||||||
Change in Net Unrealized Appreciation | 3,919,312 | 11,515,256 | 35,304,623 | 21,729,075 | 5,568,931 | 50,127 | ||||||||||||||||||||||
NET GAIN | 8,761,691 | 13,266,699 | 38,456,156 | 25,421,131 | 6,278,932 | 48,587 | ||||||||||||||||||||||
NET INCREASE IN NET ASSETS | $6,526,536 | $10,444,950 | $30,738,125 | $20,148,237 | $4,760,337 | $47,791 |
(1) | No dividends and capital gains distributions were received by the PL Portfolio Optimization Funds above from their underlying funds for the six-month period ended September 30, 2014. |
(2) | The Advisor Class shares are not subject to distribution and service fees (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, 2014 (Unaudited)
PL Short Duration Income Fund | PL Income Fund | PL Strategic Income Fund | PL Floating Rate Income Fund | PL Limited Duration High Income Fund | PL High Income Fund | |||||||||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||||||||||
Dividends | $147 | $747 | $65,910 | $56,959 | $81 | $22,113 | ||||||||||||||||||||||
Interest | 1,385,024 | 8,810,134 | 2,561,484 | 27,013,140 | 1,033,938 | 796,595 | ||||||||||||||||||||||
Other | 3,750 | 12,422 | 2,140 | 49,879 | — | — | ||||||||||||||||||||||
Total Investment Income | 1,388,921 | 8,823,303 | 2,629,534 | 27,119,978 | 1,034,019 | 818,708 | ||||||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||||||
Advisory fees | 219,635 | 1,125,547 | 315,841 | 3,427,102 | 122,999 | 85,340 | ||||||||||||||||||||||
Administration fees | 163,795 | 674,529 | 156,552 | 1,504,138 | 39,939 | 35,459 | ||||||||||||||||||||||
Support services expenses | 7,195 | 33,487 | 3,961 | 72,343 | 2,519 | 1,800 | ||||||||||||||||||||||
Custodian fees and expenses | 2,180 | 8,247 | 1,873 | 23,447 | 2,370 | 448 | ||||||||||||||||||||||
Shareholder report expenses | 5,674 | 23,168 | 3,545 | 49,107 | 1,693 | 2,062 | ||||||||||||||||||||||
Distribution and/or service fees (1) | ||||||||||||||||||||||||||||
Class A | 71,066 | 269,710 | 58,861 | 422,434 | 12,520 | 10,043 | ||||||||||||||||||||||
Class C | 131,583 | 704,926 | 152,288 | 1,091,610 | 17,053 | 29,138 | ||||||||||||||||||||||
Transfer agency out-of-pocket expenses | 8,517 | 55,168 | 8,868 | 126,150 | 2,193 | 2,063 | ||||||||||||||||||||||
Registration fees | 35,076 | 56,394 | 33,488 | 91,118 | 15,342 | 25,775 | ||||||||||||||||||||||
Legal, audit and tax service fees | 6,554 | 29,799 | 3,603 | 68,693 | 2,298 | 1,682 | ||||||||||||||||||||||
Trustees’ fees and expenses | 1,607 | 7,520 | 887 | 16,157 | 561 | 404 | ||||||||||||||||||||||
Offering expenses | — | — | — | — | 52,850 | — | ||||||||||||||||||||||
Other | 11,016 | 20,463 | 16,231 | 55,759 | 10,915 | 15,138 | ||||||||||||||||||||||
Total Expenses | 663,898 | 3,008,958 | 755,998 | 6,948,058 | 283,252 | 209,352 | ||||||||||||||||||||||
Advisory Fee Waiver (2) | — | — | — | — | (3,785 | ) | — | |||||||||||||||||||||
Adviser Expense Reimbursement (3) | (131,885 | ) | (532,141 | ) | (123,885 | ) | (1,192,096 | ) | (94,703 | ) | (57,183 | ) | ||||||||||||||||
Net Expenses | 532,013 | 2,476,817 | 632,113 | 5,755,962 | 184,764 | 152,169 | ||||||||||||||||||||||
NET INVESTMENT INCOME | 856,908 | 6,346,486 | 1,997,421 | 21,364,016 | 849,255 | 666,539 | ||||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||||||||||
Net Realized Gain (Loss) On: | ||||||||||||||||||||||||||||
Investment security transactions | 88,380 | 1,267,384 | 997,989 | (386,214 | ) | 124,144 | 272,576 | |||||||||||||||||||||
Net Realized Gain (Loss) | 88,380 | 1,267,384 | 997,989 | (386,214 | ) | 124,144 | 272,576 | |||||||||||||||||||||
Change In Net Unrealized Appreciation (Depreciation) On: | ||||||||||||||||||||||||||||
Investment securities | (797,841 | ) | (435,150 | ) | (3,495,454 | ) | (16,424,173 | ) | (1,068,573 | ) | (1,223,644 | ) | ||||||||||||||||
Unfunded loan commitments | — | — | — | 319 | — | — | ||||||||||||||||||||||
Foreign currencies | — | — | (78 | ) | — | — | (10 | ) | ||||||||||||||||||||
Change in Net Unrealized Depreciation | (797,841 | ) | (435,150 | ) | (3,495,532 | ) | (16,423,854 | ) | (1,068,573 | ) | (1,223,654 | ) | ||||||||||||||||
NET GAIN (LOSS) | (709,461 | ) | 832,234 | (2,497,543 | ) | (16,810,068 | ) | (944,429 | ) | (951,078 | ) | |||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | $147,447 | $7,178,720 | ($500,122 | ) | $4,553,948 | ($95,174 | ) | ($284,539 | ) |
(1) | Class I, Class P and Advisor Class shares are not subject to distribution and service fees (see Notes 1 and 5 in Notes to Financial Statements). |
(2) | See Note 5 in Notes to Financial Statements. |
(3) | 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 Conservative Fund | PL Portfolio Optimization Moderate-Conservative Fund | PL Portfolio Optimization Moderate Fund | ||||||||||||||||||||||||||
Six-Month 2014 (1) | Year Ended March 31, 2014 | Six-Month Period Ended September 30, 2014 (1) | Year Ended March 31, 2014 | Six-Month Period Ended September 30, 2014 (1) | Year Ended March 31, 2014 | |||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||
Net investment income (loss) | ($2,235,155 | ) | $2,463,914 | ($2,821,749 | ) | $2,804,598 | ($7,718,031 | ) | $7,140,163 | |||||||||||||||||||
Net realized gain | 4,842,379 | 6,544,561 | 1,751,443 | 9,641,778 | 3,151,533 | 32,529,810 | ||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) | 3,919,312 | (2,987,428 | ) | 11,515,256 | 13,147,640 | 35,304,623 | 75,023,699 | |||||||||||||||||||||
Net Increase in Net Assets | 6,526,536 | 6,021,047 | 10,444,950 | 25,594,016 | 30,738,125 | 114,693,672 | ||||||||||||||||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||||||
Class A | — | (2,821,820 | ) | — | (3,999,190 | ) | — | (10,766,370 | ) | |||||||||||||||||||
Class B | — | (335,519 | ) | — | (489,170 | ) | — | (1,031,195 | ) | |||||||||||||||||||
Class C | — | (1,696,575 | ) | — | (2,137,597 | ) | — | (3,965,320 | ) | |||||||||||||||||||
Class R | — | (132,566 | ) | — | (90,263 | ) | — | (338,045 | ) | |||||||||||||||||||
Advisor Class | — | (41,725 | ) | — | (27,190 | ) | — | (225,940 | ) | |||||||||||||||||||
Net realized gains | ||||||||||||||||||||||||||||
Class A | — | (2,841,954 | ) | — | (1,059,221 | ) | — | — | ||||||||||||||||||||
Class B | — | (567,167 | ) | — | (204,669 | ) | — | — | ||||||||||||||||||||
Class C | — | (2,969,193 | ) | — | (871,913 | ) | — | — | ||||||||||||||||||||
Class R | — | (152,847 | ) | — | (26,951 | ) | — | — | ||||||||||||||||||||
Advisor Class | — | (35,601 | ) | — | (5,813 | ) | — | — | ||||||||||||||||||||
Net Decrease from Dividends and | — | (11,594,967 | ) | — | (8,911,977 | ) | — | (16,326,870 | ) | |||||||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||||||
Class A | 17,488,196 | 56,099,357 | 29,448,282 | 84,205,586 | 85,363,262 | 230,306,253 | ||||||||||||||||||||||
Class B | 1,863,028 | 6,725,512 | 2,842,037 | 9,180,820 | 8,736,710 | 27,723,360 | ||||||||||||||||||||||
Class C | 21,786,748 | 61,470,324 | 26,886,614 | 69,603,848 | 61,042,091 | 166,802,069 | ||||||||||||||||||||||
Class R | 1,693,764 | 2,805,147 | 1,358,526 | 2,226,939 | 4,151,757 | 8,823,907 | ||||||||||||||||||||||
Advisor Class | 7,441,018 | 4,309,203 | 4,003,373 | 2,821,072 | 13,505,337 | 18,550,650 | ||||||||||||||||||||||
Dividends and distribution reinvestments | ||||||||||||||||||||||||||||
Class A | — | 5,121,877 | — | 4,784,115 | — | 10,353,302 | ||||||||||||||||||||||
Class B | — | 817,013 | — | 659,049 | — | 992,538 | ||||||||||||||||||||||
Class C | — | 4,318,768 | — | 2,816,292 | — | 3,718,287 | ||||||||||||||||||||||
Class R | — | 285,413 | — | 117,214 | — | 337,635 | ||||||||||||||||||||||
Advisor Class | — | 62,286 | — | 27,852 | — | 194,129 | ||||||||||||||||||||||
Cost of shares repurchased | ||||||||||||||||||||||||||||
Class A | (38,336,025 | ) | (99,110,423 | ) | (35,487,641 | ) | (69,175,234 | ) | (90,699,547 | ) | (130,906,364 | ) | ||||||||||||||||
Class B | (3,334,963 | ) | (9,861,099 | ) | (3,922,347 | ) | (8,452,444 | ) | (10,266,801 | ) | (18,763,657 | ) | ||||||||||||||||
Class C | (30,459,590 | ) | (79,650,854 | ) | (21,182,404 | ) | (46,521,305 | ) | (49,071,245 | ) | (84,984,280 | ) | ||||||||||||||||
Class R | (859,305 | ) | (4,193,617 | ) | (1,763,853 | ) | (2,035,531 | ) | (7,058,543 | ) | (9,294,082 | ) | ||||||||||||||||
Advisor Class | (2,204,953 | ) | (1,849,334 | ) | (874,910 | ) | (884,737 | ) | (8,870,256 | ) | (2,832,202 | ) | ||||||||||||||||
Net Increase (Decrease) in Net Assets from | (24,922,082 | ) | (52,650,427 | ) | 1,307,677 | 49,373,536 | 6,832,765 | 221,021,545 | ||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | (18,395,546 | ) | (58,224,347 | ) | 11,752,627 | 66,055,575 | 37,570,890 | 319,388,347 | ||||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||
Beginning of Year or Period | 448,830,794 | 507,055,141 | 565,520,780 | 499,465,205 | 1,589,000,393 | 1,269,612,046 | ||||||||||||||||||||||
End of Year or Period | $430,435,248 | $448,830,794 | $577,273,407 | $565,520,780 | $1,626,571,283 | $1,589,000,393 | ||||||||||||||||||||||
Undistributed/Accumulated Net Investment Income (Loss) | ($2,992,601 | ) | ($757,446 | ) | ($4,170,792 | ) | ($1,349,043 | ) | ($7,380,101 | ) | $337,930 |
(1) | Unaudited. |
See Notes to Financial Statements
B-5
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
PL Portfolio Optimization Moderate-Aggressive Fund | PL Portfolio Optimization | PL Diversified Alternatives Fund (1) | ||||||||||||||||||||||||||
Six-Month Period Ended September 30, 2014 (2) | Year Ended March 31, 2014 | Six-Month Period Ended September 30, 2014 (2) | Year Ended March 31, 2014 | Six-Month Period Ended September 30, 2014 (2) | Period Ended March 31, 2014 | |||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||
Net investment income (loss) | ($5,272,894 | ) | $3,010,788 | ($1,518,595 | ) | $673,899 | ($796 | ) | ($491 | ) | ||||||||||||||||||
Net realized gain (loss) | 3,692,056 | 27,407,795 | 710,001 | 10,110,306 | (1,540 | ) | (44 | ) | ||||||||||||||||||||
Change in net unrealized appreciation (depreciation) | 21,729,075 | 75,931,305 | 5,568,931 | 24,646,040 | 50,127 | (1,433 | ) | |||||||||||||||||||||
Net Increase (Decrease) in Net Assets | 20,148,237 | 106,349,888 | 4,760,337 | 35,430,245 | 47,791 | (1,968 | ) | |||||||||||||||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||||||
Class A | — | (6,852,993 | ) | — | (1,222,515 | ) | — | — | ||||||||||||||||||||
Class B | — | (705,770 | ) | — | (38,870 | ) | ||||||||||||||||||||||
Class C | — | (2,318,010 | ) | — | (159,249 | ) | — | — | ||||||||||||||||||||
Class R | — | (215,223 | ) | — | (47,300 | ) | ||||||||||||||||||||||
Advisor Class | — | (63,384 | ) | — | (23,745 | ) | — | — | ||||||||||||||||||||
Net realized gains | ||||||||||||||||||||||||||||
Class A | — | — | — | — | — | — | ||||||||||||||||||||||
Class B | — | — | — | — | ||||||||||||||||||||||||
Class C | — | — | — | — | — | — | ||||||||||||||||||||||
Class R | — | — | — | — | ||||||||||||||||||||||||
Advisor Class | — | — | — | — | — | — | ||||||||||||||||||||||
Net Decrease from Dividends and | — | (10,155,380 | ) | — | (1,491,679 | ) | — | — | ||||||||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||||||
Class A | 54,898,439 | 142,919,612 | 17,398,837 | 37,868,091 | 1,073,401 | 10,000 | ||||||||||||||||||||||
Class B | 7,438,851 | 17,876,001 | 1,935,981 | 5,257,576 | ||||||||||||||||||||||||
Class C | 32,444,093 | 95,240,806 | 14,569,360 | 28,881,008 | 514,223 | 10,000 | ||||||||||||||||||||||
Class R | 3,053,408 | 5,451,413 | 1,302,784 | 2,126,736 | ||||||||||||||||||||||||
Advisor Class | 4,747,428 | 3,519,711 | 2,947,842 | 2,403,459 | 154,860 | 1,980,000 | ||||||||||||||||||||||
Dividends and distribution reinvestments | ||||||||||||||||||||||||||||
Class A | — | 6,645,318 | — | 1,189,737 | — | — | ||||||||||||||||||||||
Class B | — | 677,807 | — | 37,645 | ||||||||||||||||||||||||
Class C | — | 2,196,647 | — | 151,641 | — | — | ||||||||||||||||||||||
Class R | — | 215,223 | — | 47,300 | ||||||||||||||||||||||||
Advisor Class | — | 50,235 | — | 9,062 | — | — | ||||||||||||||||||||||
Cost of shares repurchased | ||||||||||||||||||||||||||||
Class A | (45,268,841 | ) | (79,611,259 | ) | (14,980,129 | ) | (28,010,608 | ) | (47,352 | ) | — | |||||||||||||||||
Class B | (9,898,836 | ) | (16,085,991 | ) | (3,662,690 | ) | (4,908,415 | ) | ||||||||||||||||||||
Class C | (28,362,115 | ) | (50,975,201 | ) | (13,704,993 | ) | (19,891,624 | ) | (300,050 | ) | — | |||||||||||||||||
Class R | (1,961,956 | ) | (5,149,547 | ) | (712,503 | ) | (2,171,356 | ) | ||||||||||||||||||||
Advisor Class | (1,811,031 | ) | (1,276,510 | ) | (606,422 | ) | (113,114 | ) | — | — | ||||||||||||||||||
Net Increase in Net Assets from | 15,279,440 | 121,694,265 | 4,488,067 | 22,877,138 | 1,395,082 | 2,000,000 | ||||||||||||||||||||||
NET INCREASE IN NET ASSETS | 35,427,677 | 217,888,773 | 9,248,404 | 56,815,704 | 1,442,873 | 1,998,032 | ||||||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||
Beginning of Year or Period | 1,075,630,069 | 857,741,296 | 312,321,008 | 255,505,304 | 1,998,032 | — | ||||||||||||||||||||||
End of Year or Period | $1,111,057,746 | $1,075,630,069 | $321,569,412 | $312,321,008 | $3,440,905 | $1,998,032 | ||||||||||||||||||||||
Undistributed/Accumulated Net Investment Income (Loss) | ($4,517,424 | ) | $755,470 | ($101,500 | ) | $1,417,095 | ($73 | ) | $723 |
(1) | Operations commenced on December 31, 2013. |
(2) | Unaudited. |
See Notes to Financial Statements
B-6
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
PL Short Duration Income Fund | PL Income Fund | PL Strategic Income Fund | ||||||||||||||||||||||||||
Six-Month Period Ended September 30, 2014 (1) | Year Ended March 31, 2014 | Six-Month Period Ended September 30, 2014 (1) | Year Ended March 31, 2014 | Six-Month Period Ended September 30, 2014 (1) | Year Ended March 31, 2014 | |||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||
Net investment income | $856,908 | $1,000,706 | $6,346,486 | $14,379,066 | $1,997,421 | $2,097,951 | ||||||||||||||||||||||
Net realized gain (loss) | 88,380 | 256,313 | 1,267,384 | (2,687,733 | ) | 997,989 | 1,167,960 | |||||||||||||||||||||
Change in net unrealized appreciation (depreciation) | (797,841 | ) | 155,859 | (435,150 | ) | (6,584,699 | ) | (3,495,532 | ) | 188,366 | ||||||||||||||||||
Net Increase (Decrease) in Net Assets | 147,447 | 1,412,878 | 7,178,720 | 5,106,634 | (500,122 | ) | 3,454,277 | |||||||||||||||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||||||
Class A | (460,008 | ) | (684,938 | ) | (3,186,153 | ) | (8,489,456 | ) | (902,098 | ) | (1,207,790 | ) | ||||||||||||||||
Class C | (121,379 | ) | (178,171 | ) | (1,608,609 | ) | (3,262,361 | ) | (480,989 | ) | (536,688 | ) | ||||||||||||||||
Class I | (11,751 | ) | (30,286 | ) | (17,364 | ) | (44,760 | ) | (37,049 | ) | (191,586 | ) | ||||||||||||||||
Advisor Class | (266,577 | ) | (113,349 | ) | (1,580,542 | ) | (2,717,868 | ) | (578,166 | ) | (178,520 | ) | ||||||||||||||||
Net realized gains | ||||||||||||||||||||||||||||
Class A | — | (151,735 | ) | — | (3,751,195 | ) | — | (889,933 | ) | |||||||||||||||||||
Class C | — | (68,653 | ) | — | (1,925,110 | ) | — | (453,293 | ) | |||||||||||||||||||
Class I | — | (2,555 | ) | — | (17,465 | ) | — | (29,936 | ) | |||||||||||||||||||
Advisor Class | — | (18,328 | ) | — | (1,139,508 | ) | — | (120,178 | ) | |||||||||||||||||||
Net Decrease from Dividends and | (859,715 | ) | (1,248,015 | ) | (6,392,668 | ) | (21,347,723 | ) | (1,998,302 | ) | (3,607,924 | ) | ||||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||||||
Class A | 26,219,993 | 60,289,931 | 38,850,467 | 83,208,862 | 26,010,762 | 30,152,055 | ||||||||||||||||||||||
Class C | 10,084,099 | 19,934,678 | 39,340,003 | 30,713,477 | 16,632,375 | 17,364,212 | ||||||||||||||||||||||
Class I | 613,458 | 722,595 | 151,239 | 81,865 | 257,664 | 1,056,697 | ||||||||||||||||||||||
Advisor Class | 51,268,979 | 8,970,832 | 68,611,434 | 40,811,461 | 50,969,898 | 8,662,380 | ||||||||||||||||||||||
Dividends and distribution reinvestments | ||||||||||||||||||||||||||||
Class A | 401,431 | 700,454 | 2,963,746 | 10,479,851 | 851,912 | 1,908,436 | ||||||||||||||||||||||
Class C | 117,120 | 222,558 | 1,466,744 | 4,431,014 | 461,843 | 899,882 | ||||||||||||||||||||||
Class I | 9,799 | 32,841 | 17,317 | 40,842 | 35,999 | 211,631 | ||||||||||||||||||||||
Advisor Class | 245,606 | 109,388 | 1,328,685 | 2,984,004 | 486,581 | 254,303 | ||||||||||||||||||||||
Cost of shares repurchased | ||||||||||||||||||||||||||||
Class A | (33,890,640 | ) | (23,652,874 | ) | (64,023,292 | ) | (197,526,408 | ) | (14,931,422 | ) | (14,992,646 | ) | ||||||||||||||||
Class C | (4,104,697 | ) | (6,726,584 | ) | (17,023,060 | ) | (68,363,424 | ) | (2,158,990 | ) | (2,796,525 | ) | ||||||||||||||||
Class I | (527,812 | ) | (13,090,925 | ) | (310,401 | ) | (677,903 | ) | (30,861 | ) | (21,610,465 | ) | ||||||||||||||||
Advisor Class | (12,979,019 | ) | (2,647,261 | ) | (14,942,477 | ) | (65,453,132 | ) | (9,143,334 | ) | (1,205,737 | ) | ||||||||||||||||
Net Increase (Decrease) in Net Assets from | 37,458,317 | 44,865,633 | 56,430,405 | (159,269,491 | ) | 69,442,427 | 19,904,223 | |||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | 36,746,049 | 45,030,496 | 57,216,457 | (175,510,580 | ) | 66,944,003 | 19,750,576 | |||||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||
Beginning of Year or Period | 94,354,690 | 49,324,194 | 414,708,579 | 590,219,159 | 72,335,587 | 52,585,011 | ||||||||||||||||||||||
End of Year or Period | $131,100,739 | $94,354,690 | $471,925,036 | $414,708,579 | $139,279,590 | $72,335,587 | ||||||||||||||||||||||
Undistributed Net Investment Income | $6,289 | $9,096 | $37,223 | $83,405 | $12,019 | $12,900 |
(1) | Unaudited. |
See Notes to Financial Statements
B-7
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
PL Floating Rate Income Fund | PL Limited Duration High Income Fund (1) | PL High Income Fund | ||||||||||||||||||||||||||
Six-Month Period Ended | Year Ended March 31, 2014 | Six-Month Period Ended | Period Ended March 31, 2014 | Six-Month Period Ended | Year Ended March 31, 2014 | |||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||
Net investment income | $21,364,016 | $25,774,667 | $849,255 | $754,728 | $666,539 | $909,068 | ||||||||||||||||||||||
Net realized gain (loss) | (386,214 | ) | 2,616,647 | 124,144 | 102,649 | 272,576 | 232,591 | |||||||||||||||||||||
Change in net unrealized appreciation (depreciation) | (16,423,854 | ) | 1,321,157 | (1,068,573 | ) | 489,029 | (1,223,654 | ) | 217,539 | |||||||||||||||||||
Net Increase (Decrease) in Net Assets | 4,553,948 | 29,712,471 | (95,174 | ) | 1,346,406 | (284,539 | ) | 1,359,198 | ||||||||||||||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||||||
Class A | (6,818,403 | ) | (10,667,801 | ) | (226,823 | ) | (121,106 | ) | (189,590 | ) | (250,119 | ) | ||||||||||||||||
Class C | (3,763,536 | ) | (4,611,876 | ) | (67,175 | ) | (22,580 | ) | (114,860 | ) | (155,578 | ) | ||||||||||||||||
Class I | (2,283,301 | ) | (1,835,602 | ) | (526,934 | ) | (563,742 | ) | (236,774 | ) | (470,338 | ) | ||||||||||||||||
Class P | (6,441 | ) | (2,898 | ) | ||||||||||||||||||||||||
Advisor Class | (8,656,298 | ) | (8,489,969 | ) | (47,041 | ) | (30,089 | ) | (129,781 | ) | (32,777 | ) | ||||||||||||||||
Net realized gains | ||||||||||||||||||||||||||||
Class A | — | (545,857 | ) | — | (2,486 | ) | — | (92,025 | ) | |||||||||||||||||||
Class C | — | (286,495 | ) | — | (566 | ) | — | (67,572 | ) | |||||||||||||||||||
Class I | — | (79,308 | ) | — | (16,212 | ) | — | (163,127 | ) | |||||||||||||||||||
Class P | — | (16 | ) | |||||||||||||||||||||||||
Advisor Class | — | (422,461 | ) | — | (835 | ) | — | (6,092 | ) | |||||||||||||||||||
Net Decrease from Dividends and | (21,527,979 | ) | (26,942,283 | ) | (867,973 | ) | (757,616 | ) | (671,005 | ) | (1,237,628 | ) | ||||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||||||
Class A | 58,856,707 | 331,268,389 | 3,084,249 | 9,423,359 | 3,427,718 | 4,221,962 | ||||||||||||||||||||||
Class C | 39,608,994 | 173,621,430 | 2,114,868 | 2,466,423 | 1,220,609 | 3,477,530 | ||||||||||||||||||||||
Class I | 15,741,131 | 87,451,805 | 7,200 | 21,183,762 | 3,950 | 28,526 | ||||||||||||||||||||||
Class P | 188,819 | 252,683 | ||||||||||||||||||||||||||
Advisor Class | 139,150,949 | 377,225,355 | 481,561 | 2,023,583 | 8,159,657 | 3,093,923 | ||||||||||||||||||||||
Dividends and distribution reinvestments | ||||||||||||||||||||||||||||
Class A | 6,251,760 | 9,791,691 | 209,548 | 112,297 | 184,737 | 313,467 | ||||||||||||||||||||||
Class C | 3,333,831 | 4,090,137 | 64,385 | 20,564 | 113,040 | 199,720 | ||||||||||||||||||||||
Class I | 2,198,034 | 1,717,126 | 526,934 | 579,954 | 236,763 | 633,465 | ||||||||||||||||||||||
Class P | 6,441 | 2,914 | ||||||||||||||||||||||||||
Advisor Class | 7,151,736 | 6,522,226 | 45,420 | 29,698 | 94,778 | 32,514 | ||||||||||||||||||||||
Cost of shares repurchased | ||||||||||||||||||||||||||||
Class A | (151,438,743 | ) | (91,687,943 | ) | (1,261,029 | ) | (947,758 | ) | (1,129,005 | ) | (1,621,656 | ) | ||||||||||||||||
Class C | (35,412,839 | ) | (27,061,176 | ) | (349,713 | ) | (60,304 | ) | (575,738 | ) | (657,069 | ) | ||||||||||||||||
Class I | (7,744,864 | ) | (3,370,949 | ) | (3,000 | ) | — | (5,300 | ) | (27,933 | ) | |||||||||||||||||
Class P | (9,031 | ) | (21,132 | ) | ||||||||||||||||||||||||
Advisor Class | (122,327,013 | ) | (51,794,600 | ) | (297,728 | ) | (213,848 | ) | (6,813,789 | ) | (361,997 | ) | ||||||||||||||||
Net Increase (Decrease) in Net Assets from | (44,444,088 | ) | 818,007,956 | 4,622,695 | 34,617,730 | 4,917,420 | 9,332,452 | |||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | (61,418,119 | ) | 820,778,144 | 3,659,548 | 35,206,520 | 3,961,876 | 9,454,022 | |||||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||
Beginning of Year or Period | 1,055,218,344 | 234,440,200 | 35,206,520 | — | 24,243,633 | 14,789,611 | ||||||||||||||||||||||
End of Year or Period | $993,800,225 | $1,055,218,344 | $38,866,068 | $35,206,520 | $28,205,509 | $24,243,633 | ||||||||||||||||||||||
Undistributed Net Investment Income | $113,803 | $277,766 | $5,034 | $23,752 | $4,212 | $8,678 |
(1) | Operations commenced on July 31, 2013. |
(2) | Unaudited. |
See Notes to Financial Statements
B-8
PACIFIC LIFE FUNDS
Selected per share, ratios and supplemental data for each year or period ended were as follows:
|
| Selected Per Share Data |
| Ratios to Average Net Assets | Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||||||||||||||||||||
For the Year or Period Ended | Net Asset Value, Beginning of Year or Period | Net Investment Income (Loss) (1) | Net Realized and Unrealized Gain | Total | Net Investment Income | Capital Gains | Total | Net Asset Value, End of Year or Period | Expenses Before Reductions (2) | Expenses After Reductions (2), (3) | Net Investment Income (Loss) (2) | Total Returns (4) | Net Assets, End of Year or Period (in thousands) | Portfolio Turnover Rates | ||||||||||||||||||||||||||||||||||||
PL Portfolio Optimization Conservative Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Class A |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $11.29 | ($0.03 | ) | $0.21 | $0.18 | $— | $— | $— | $11.47 | 0.70% | 0.60% | (0.60%) | 1.59 | % | $172,812 | 9 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 11.40 | 0.10 | 0.10 | 0.20 | (0.15 | ) | (0.16 | ) | (0.31 | ) | 11.29 | 0.70% | 0.60% | 0.90% | 1.78 | % | 190,492 | 11 | % | |||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 11.07 | 0.23 | 0.49 | 0.72 | (0.34 | ) | (0.05 | ) | (0.39 | ) | 11.40 | 0.71% | 0.60% | 2.01% | 6.57 | % | 230,646 | 27 | % | |||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.87 | 0.22 | 0.29 | 0.51 | (0.28 | ) | (0.03 | ) | (0.31 | ) | 11.07 | 0.73% | 0.60% | 1.99% | 4.80 | % | 182,912 | 10 | % | |||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.41 | 0.15 | 0.63 | 0.78 | (0.32 | ) | — | (0.32 | ) | 10.87 | 0.78% | 0.53% | 1.43% | 7.60 | % | 130,249 | 18 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 8.84 | 0.32 | 1.59 | 1.91 | (0.31 | ) | (0.03 | ) | (0.34 | ) | 10.41 | 0.95% | 0.20% | 3.20% | 21.67 | % | 68,938 | 21 | % | |||||||||||||||||||||||||||||||
Class B |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $11.14 | ($0.08 | ) | $0.22 | $0.14 | $— | $— | $— | $11.28 | 1.45% | 1.35% | (1.35%) | 1.26 | % | $38,197 | 9 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 11.27 | 0.02 | 0.10 | 0.12 | (0.09 | ) | (0.16 | ) | (0.25 | ) | 11.14 | 1.45% | 1.35% | 0.15% | 1.06 | % | 39,160 | 11 | % | |||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 10.96 | 0.14 | 0.50 | 0.64 | (0.28 | ) | | (0.05 | ) | (0.33 | ) | 11.27 | 1.46% | 1.35% | 1.27% | 5.89 | % | 41,999 | 27 | % | ||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.78 | 0.13 | 0.29 | 0.42 | (0.21 | ) | (0.03 | ) | (0.24 | ) | 10.96 | 1.48% | 1.35% | 1.24% | 4.02 | % | 33,122 | 10 | % | |||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.34 | 0.07 | 0.63 | 0.70 | (0.26 | ) | — | (0.26 | ) | 10.78 | 1.53% | 1.27% | 0.68% | 6.80 | % | 22,282 | 18 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 8.77 | 0.24 | 1.60 | 1.84 | (0.24 | ) | (0.03 | ) | (0.27 | ) | 10.34 | 1.70% | 0.95% | 2.45% | 21.07 | % | 13,336 | 21 | % | |||||||||||||||||||||||||||||||
Class C |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $11.13 | ($0.08 | ) | $0.23 | 0.15 | $— | $— | $— | $11.28 | 1.45% | 1.35% | (1.35%) | 1.35 | % | $198,113 | 9 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 11.26 | 0.02 | 0.10 | 0.12 | (0.09 | ) | (0.16 | ) | (0.25 | ) | 11.13 | 1.45% | 1.35% | 0.15% | 1.04 | % | 204,180 | 11 | % | |||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 10.96 | 0.14 | 0.49 | 0.63 | (0.28 | ) | (0.05 | ) | (0.33 | ) | 11.26 | 1.46% | 1.35% | 1.22% | 5.84 | % | 220,688 | 27 | % | |||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.77 | 0.13 | 0.30 | 0.43 | (0.21 | ) | (0.03 | ) | (0.24 | ) | 10.96 | 1.48% | 1.35% | 1.24% | 4.08 | % | 158,748 | 10 | % | |||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.33 | 0.07 | 0.63 | 0.70 | (0.26 | ) | — | (0.26 | ) | 10.77 | 1.53% | 1.27% | 0.68% | 6.81 | % | 117,458 | 18 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 8.76 | 0.24 | 1.61 | 1.85 | (0.25 | ) | (0.03 | ) | (0.28 | ) | 10.33 | 1.70% | 0.95% | 2.45% | 21.14 | % | 67,620 | 21 | % | |||||||||||||||||||||||||||||||
Class R |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $11.24 | ($0.05 | ) | $0.22 | $0.17 | $— | $— | $— | $11.41 | 0.95% | 0.85% | (0.85%) | 1.51 | % | $12,130 | 9 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 11.36 | 0.07 | 0.10 | 0.17 | (0.13 | ) | (0.16 | ) | (0.29 | ) | 11.24 | 0.95% | 0.85% | 0.65% | 1.52 | % | 11,132 | 11 | % | |||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 11.03 | 0.20 | 0.50 | 0.70 | (0.32 | ) | (0.05 | ) | (0.37 | ) | 11.36 | 0.96% | 0.85% | 1.79% | 6.38 | % | 12,357 | 27 | % | |||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.83 | 0.19 | 0.29 | 0.48 | (0.25 | ) | (0.03 | ) | (0.28 | ) | 11.03 | 0.98% | 0.85% | 1.74% | 4.58 | % | 10,522 | 10 | % | |||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.38 | 0.13 | 0.61 | 0.74 | (0.29 | ) | — | (0.29 | ) | 10.83 | 1.03% | 0.75% | 1.20% | 7.25 | % | 8,881 | 18 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 8.81 | 0.29 | 1.60 | 1.89 | (0.29 | ) | (0.03 | ) | (0.32 | ) | 10.38 | 1.20% | 0.45% | 2.95% | 21.53 | % | 7,972 | 21 | % | |||||||||||||||||||||||||||||||
Advisor Class |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $11.29 | ($0.02 | ) | $0.22 | $0.20 | $— | $— | $— | $11.49 | 0.45% | 0.35% | (0.35%) | 1.77 | % | $9,184 | 9 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 11.41 | 0.12 | 0.09 | 0.21 | (0.17 | ) | (0.16 | ) | (0.33 | ) | 11.29 | 0.45% | 0.40% | 1.10% | 1.87 | % | 3,867 | 11 | % | |||||||||||||||||||||||||||||||
12/31/2012 - 3/31/2013 | 11.18 | (0.01 | ) | 0.24 | 0.23 | — | — | — | 11.41 | 0.48% | 0.40% | (0.40%) | 2.06 | % | 1,366 | 27 | % | |||||||||||||||||||||||||||||||||
PL Portfolio Optimization Moderate-Conservative Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Class A |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $12.48 | ($0.04 | ) | $0.30 | $0.26 | $— | $— | $— | $12.74 | 0.69% | 0.60% | (0.60%) | 2.08 | % | $274,412 | 11 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 12.10 | 0.11 | 0.50 | 0.61 | (0.18 | ) | (0.05 | ) | (0.23 | ) | 12.48 | 0.69% | 0.60% | 0.89% | 5.08 | % | 274,899 | 5 | % | |||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 11.56 | 0.18 | 0.64 | 0.82 | (0.28 | ) | — | (0.28 | ) | 12.10 | 0.71% | 0.60% | 1.58% | 7.22 | % | 246,609 | 24 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.25 | 0.18 | 0.35 | 0.53 | (0.22 | ) | — | (0.22 | ) | 11.56 | 0.73% | 0.60% | 1.62% | 4.87 | % | 188,660 | 10 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.54 | 0.12 | 0.87 | 0.99 | (0.28 | ) | — | (0.28 | ) | 11.25 | 0.78% | 0.52% | 1.16% | 9.53 | % | 132,919 | 10 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 8.36 | 0.26 | 2.19 | 2.45 | (0.27 | ) | — | (0.27 | ) | 10.54 | 0.95% | 0.20% | 2.58% | 29.60 | % | 78,160 | 10 | % | ||||||||||||||||||||||||||||||||
Class B |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $12.36 | ($0.09 | ) | $0.29 | $0.20 | $— | $— | $— | $12.56 | 1.44% | 1.35% | (1.35%) | 1.62 | % | $52,070 | 11 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 11.99 | 0.02 | 0.51 | 0.53 | (0.11 | ) | (0.05 | ) | (0.16 | ) | 12.36 | 1.44% | 1.35% | 0.14% | 4.47 | % | 52,285 | 5 | % | |||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 11.46 | 0.10 | 0.63 | 0.73 | (0.20 | ) | — | (0.20 | ) | 11.99 | 1.46% | 1.35% | 0.85% | 6.46 | % | 49,372 | 24 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.17 | 0.10 | 0.35 | 0.45 | (0.16 | ) | — | (0.16 | ) | 11.46 | 1.48% | 1.35% | 0.87% | 4.07 | % | 40,812 | 10 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.47 | 0.04 | 0.87 | 0.91 | (0.21 | ) | — | (0.21 | ) | 11.17 | 1.53% | 1.27% | 0.41% | 8.78 | % | 28,411 | 10 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 8.30 | 0.18 | 2.20 | 2.38 | (0.21 | ) | — | (0.21 | ) | 10.47 | 1.70% | 0.95% | 1.83% | 28.87 | % | 19,202 | 10 | % | ||||||||||||||||||||||||||||||||
Class C |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $12.35 | ($0.09 | ) | $0.30 | $0.21 | $— | $— | $— | $12.56 | 1.44% | 1.35% | (1.35%) | 1.70 | % | $237,958 | 11 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 11.99 | 0.02 | 0.51 | 0.53 | (0.12 | ) | (0.05 | ) | (0.17 | ) | 12.35 | 1.44% | 1.35% | 0.14% | 4.41 | % | 228,445 | 5 | % | |||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 11.47 | 0.09 | 0.64 | 0.73 | (0.21 | ) | — | (0.21 | ) | 11.99 | 1.46% | 1.35% | 0.81% | 6.41 | % | 196,123 | 24 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.16 | 0.10 | 0.36 | 0.46 | (0.15 | ) | — | (0.15 | ) | 11.47 | 1.48% | 1.35% | 0.87% | 4.20 | % | 144,900 | 10 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.47 | 0.04 | 0.86 | 0.90 | (0.21 | ) | — | (0.21 | ) | 11.16 | 1.53% | 1.27% | 0.41% | 8.71 | % | 107,411 | 10 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 8.30 | 0.18 | 2.20 | 2.38 | (0.21 | ) | — | (0.21 | ) | 10.47 | 1.70% | 0.95% | 1.83% | 28.87 | % | 65,086 | 10 | % |
See Notes to Financial Statements | See explanation of references on B-14 |
B-9
PACIFIC LIFE FUNDS
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period ended were as follows:
|
| Selected Per Share Data |
| Ratios to Average Net Assets | Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||||||||||||||||||||
For the Year or Period Ended | Net Asset Value, Beginning of Year or Period | Net Investment Income (Loss) (1) | Net Realized and Unrealized Gain | Total | Net Investment Income | Capital Gains | Total | Net Asset Value, End of Year or Period | Expenses Before Reductions (2) | Expenses After Reductions (2), (3) | Net Investment Income (Loss) (2) | Total Returns (4) | Net Assets, End of Year or Period (in thousands) | Portfolio Turnover Rates | ||||||||||||||||||||||||||||||||||||
PL Portfolio Optimization Moderate-Conservative Fund (Continued) |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Class R |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $12.44 | ($0.05 | ) | $0.29 | $0.24 | $— | $— | $— | $12.68 | 0.94% | 0.85% | (0.85%) | 1.93 | % | $6,742 | 11 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 12.06 | 0.08 | 0.51 | 0.59 | (0.16 | ) | (0.05 | ) | (0.21 | ) | 12.44 | 0.94% | 0.85% | 0.64% | 4.91 | % | 7,000 | 5 | % | |||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 11.52 | 0.16 | 0.63 | 0.79 | (0.25 | ) | — | (0.25 | ) | 12.06 | 0.96% | 0.85% | 1.39% | 6.92 | % | 6,482 | 24 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.22 | 0.15 | 0.35 | 0.50 | (0.20 | ) | — | (0.20 | ) | 11.52 | 0.98% | 0.85% | 1.37% | 4.53 | % | 6,301 | 10 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.51 | 0.10 | 0.86 | 0.96 | (0.25 | ) | — | (0.25 | ) | 11.22 | 1.03% | 0.76% | 0.91% | 9.32 | % | 15,236 | 10 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 8.34 | 0.23 | 2.20 | 2.43 | (0.26 | ) | — | (0.26 | ) | 10.51 | 1.20% | 0.45% | 2.33% | 29.32 | % | 10,478 | 10 | % | ||||||||||||||||||||||||||||||||
Advisor Class |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $12.49 | ($0.02 | ) | $0.29 | $0.27 | $— | $— | $— | $12.76 | 0.44% | 0.35% | (0.35%) | 2.16 | % | $6,092 | 11 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 12.10 | 0.13 | 0.51 | 0.64 | (0.20 | ) | (0.05 | ) | (0.25 | ) | 12.49 | 0.44% | 0.40% | 1.09% | 5.32 | % | 2,892 | 5 | % | |||||||||||||||||||||||||||||||
12/31/2012 - 3/31/2013 | 11.68 | (0.01 | ) | 0.43 | 0.42 | — | — | — | 12.10 | 0.46% | 0.40% | (0.40%) | 3.60 | % | 880 | 24 | % | |||||||||||||||||||||||||||||||||
PL Portfolio Optimization Moderate Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Class A |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $13.98 | ($0.04 | ) | $0.33 | $0.29 | $— | $— | $— | $14.27 | 0.68% | 0.60% | (0.60%) | 2.08 | % | $826,495 | 11 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 13.06 | 0.11 | 1.00 | 1.11 | (0.19 | ) | — | (0.19 | ) | 13.98 | 0.69% | 0.60% | 0.84% | 8.51 | % | 814,707 | 1 | % | ||||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 12.26 | 0.15 | 0.86 | 1.01 | (0.21 | ) | — | (0.21 | ) | 13.06 | 0.70% | 0.60% | 1.20% | 8.36 | % | 654,158 | 25 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.88 | 0.14 | 0.42 | 0.56 | (0.18 | ) | — | (0.18 | ) | 12.26 | 0.72% | 0.60% | 1.18% | 4.82 | % | 517,945 | 7 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.81 | 0.10 | 1.19 | 1.29 | (0.22 | ) | — | (0.22 | ) | 11.88 | 0.77% | 0.52% | 0.91% | 12.10 | % | 384,999 | 9 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 7.96 | 0.20 | 2.87 | 3.07 | (0.22 | ) | — | (0.22 | ) | 10.81 | 0.92% | 0.20% | 1.99% | 38.85 | % | 247,213 | 9 | % | ||||||||||||||||||||||||||||||||
Class B |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $13.89 | ($0.10 | ) | $0.34 | $0.24 | $— | $— | $— | $14.13 | 1.43% | 1.35% | (1.35%) | 1.73 | % | $157,628 | 11 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 12.96 | 0.01 | 1.01 | 1.02 | (0.09 | ) | — | (0.09 | ) | 13.89 | 1.44% | 1.35% | 0.09% | 7.90 | % | 156,450 | 1 | % | ||||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 12.18 | 0.06 | 0.85 | 0.91 | (0.13 | ) | — | (0.13 | ) | 12.96 | 1.45% | 1.35% | 0.47% | 7.49 | % | 136,411 | 25 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.80 | 0.05 | 0.43 | 0.48 | (0.10 | ) | — | (0.10 | ) | 12.18 | 1.47% | 1.35% | 0.43% | 4.13 | % | 115,513 | 7 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.74 | 0.02 | 1.18 | 1.20 | (0.14 | ) | — | (0.14 | ) | 11.80 | 1.52% | 1.26% | 0.17% | 11.33 | % | 92,064 | 9 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 7.90 | 0.12 | 2.87 | 2.99 | (0.15 | ) | — | (0.15 | ) | 10.74 | 1.67% | 0.95% | 1.24% | 38.14 | % | 65,336 | 9 | % | ||||||||||||||||||||||||||||||||
Class C |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $13.87 | ($0.10 | ) | $0.34 | $0.24 | $— | $— | $— | $14.11 | 1.43% | 1.35% | (1.35%) | 1.73 | % | $588,092 | 11 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 12.95 | 0.01 | 1.01 | 1.02 | (0.10 | ) | — | (0.10 | ) | 13.87 | 1.44% | 1.35% | 0.09% | 7.89 | % | 566,257 | 1 | % | ||||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 12.17 | 0.06 | 0.85 | 0.91 | (0.13 | ) | — | (0.13 | ) | 12.95 | 1.45% | 1.35% | 0.46% | 7.50 | % | 445,932 | 25 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.78 | 0.05 | 0.43 | 0.48 | (0.09 | ) | — | (0.09 | ) | 12.17 | 1.47% | 1.35% | 0.43% | 4.18 | % | 366,753 | 7 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.73 | 0.02 | 1.17 | 1.19 | (0.14 | ) | — | (0.14 | ) | 11.78 | 1.52% | 1.26% | 0.17% | 11.26 | % | 308,449 | 9 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 7.88 | 0.12 | 2.88 | 3.00 | (0.15 | ) | — | (0.15 | ) | 10.73 | 1.67% | 0.95% | 1.24% | 38.36 | % | 210,889 | 9 | % | ||||||||||||||||||||||||||||||||
Class R |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $13.96 | ($0.06 | ) | $0.33 | $0.27 | $— | $— | $— | $14.23 | 0.93% | 0.85% | (0.85%) | 1.93 | % | $29,353 | 11 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 13.03 | 0.08 | 1.00 | 1.08 | (0.15 | ) | — | (0.15 | ) | 13.96 | 0.94% | 0.85% | 0.59% | 8.33 | % | 31,641 | 1 | % | ||||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 12.24 | 0.11 | 0.86 | 0.97 | (0.18 | ) | — | (0.18 | ) | 13.03 | 0.95% | 0.85% | 0.93% | 8.02 | % | 29,715 | 25 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.84 | 0.11 | 0.43 | 0.54 | (0.14 | ) | — | (0.14 | ) | 12.24 | 0.97% | 0.85% | 0.93% | 4.67 | % | 23,321 | 7 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.77 | 0.07 | 1.18 | 1.25 | (0.18 | ) | — | (0.18 | ) | 11.84 | 1.02% | 0.75% | 0.68% | 11.82 | % | 23,658 | 9 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 7.93 | 0.17 | 2.87 | 3.04 | (0.20 | ) | — | (0.20 | ) | 10.77 | 1.17% | 0.45% | 1.74% | 38.61 | % | 24,232 | 9 | % | ||||||||||||||||||||||||||||||||
Advisor Class |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $13.98 | ($0.03 | ) | $0.34 | $0.31 | $— | $— | $— | $14.29 | 0.43% | 0.35% | (0.35%) | 2.22 | % | $25,004 | 11 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 13.06 | 0.14 | 1.00 | 1.14 | (0.22 | ) | — | (0.22 | ) | 13.98 | 0.44% | 0.40% | 1.04% | 8.73 | % | 19,945 | 1 | % | ||||||||||||||||||||||||||||||||
12/31/2012 - 3/31/2013 | 12.41 | (0.01 | ) | 0.66 | 0.65 | — | — | — | 13.06 | 0.45% | 0.40% | (0.40%) | 5.24 | % | 3,396 | 25 | % | |||||||||||||||||||||||||||||||||
PL Portfolio Optimization Moderate-Aggressive Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Class A |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $14.74 | ($0.05 | ) | $0.35 | $0.30 | $— | $— | $— | $15.04 | 0.68% | 0.60% | (0.60%) | 2.04 | % | $576,187 | 11 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 13.33 | 0.09 | 1.51 | 1.60 | (0.19 | ) | — | (0.19 | ) | 14.74 | 0.69% | 0.60% | 0.66% | 12.01 | % | 555,319 | 1 | % | ||||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 12.41 | 0.10 | 0.96 | 1.06 | (0.14 | ) | — | (0.14 | ) | 13.33 | 0.71% | 0.60% | 0.83% | 8.62 | % | 436,055 | 25 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 12.05 | 0.10 | 0.38 | 0.48 | (0.12 | ) | — | (0.12 | ) | 12.41 | 0.72% | 0.60% | 0.82% | 4.13 | % | 365,426 | 8 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.68 | 0.07 | 1.44 | 1.51 | (0.14 | ) | — | (0.14 | ) | 12.05 | 0.77% | 0.51% | 0.62% | 14.36 | % | 301,232 | 13 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 7.31 | 0.13 | 3.38 | 3.51 | (0.14 | ) | — | (0.14 | ) | 10.68 | 0.92% | 0.20% | 1.33% | 48.26 | % | 225,236 | 14 | % |
See Notes to Financial Statements | See explanation of references on B-14 |
B-10
PACIFIC LIFE FUNDS
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period ended were as follows:
|
| Selected Per Share Data |
| Ratios to Average Net Assets | Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||||||||||||||||||||
For the Year or Period Ended | Net Asset Value, Beginning of Year or Period | Net Investment Income (Loss) (1) | Net Realized and Unrealized Gain | Total | Net Investment Income | Capital Gains | Total | Net Asset Value, End of Year or Period | Expenses Before Reductions (2) | Expenses After Reductions (2), (3) | Net Investment Income (Loss) (2) | Total Returns (4) | Net Assets, End of Year or Period (in thousands) | Portfolio Turnover Rates | ||||||||||||||||||||||||||||||||||||
PL Portfolio Optimization Moderate-Aggressive Fund (Continued) |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Class B |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $14.62 | ($0.10 | ) | $0.34 | $0.24 | $— | $— | $— | $14.86 | 1.43% | 1.35% | (1.35%) | 1.64 | % | $119,062 | 11 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 13.22 | (0.01 | ) | 1.50 | 1.49 | (0.09 | ) | — | (0.09 | ) | 14.62 | 1.44% | 1.35% | (0.09%) | 11.25 | % | 119,506 | 1 | % | |||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 12.30 | 0.01 | 0.96 | 0.97 | (0.05 | ) | — | (0.05 | ) | 13.22 | 1.46% | 1.35% | 0.09% | 7.92 | % | 105,757 | 25 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.93 | 0.01 | 0.40 | 0.41 | (0.04 | ) | — | (0.04 | ) | 12.30 | 1.47% | 1.35% | 0.07% | 3.50 | % | 95,937 | 8 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.57 | (0.01 | ) | 1.43 | 1.42 | (0.06 | ) | — | (0.06 | ) | 11.93 | 1.52% | 1.26% | (0.13%) | 13.59 | % | 83,812 | 13 | % | |||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 7.21 | 0.05 | 3.38 | 3.43 | (0.07 | ) | — | (0.07 | ) | 10.57 | 1.67% | 0.95% | 0.58% | 47.84 | % | 68,751 | 14 | % | ||||||||||||||||||||||||||||||||
Class C |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $14.59 | ($0.10 | ) | $0.34 | $0.24 | $— | $— | $— | $14.83 | 1.43% | 1.35% | (1.35%) | 1.65 | % | $385,831 | 11 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 13.19 | (0.01 | ) | 1.50 | 1.49 | (0.09 | ) | — | (0.09 | ) | 14.59 | 1.44% | 1.35% | (0.09%) | 11.33 | % | 375,368 | 1 | % | |||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 12.27 | 0.01 | 0.96 | 0.97 | (0.05 | ) | — | (0.05 | ) | 13.19 | 1.46% | 1.35% | 0.09% | 7.95 | % | 295,615 | 25 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.91 | 0.01 | 0.39 | 0.40 | (0.04 | ) | — | (0.04 | ) | 12.27 | 1.47% | 1.35% | 0.07% | 3.39 | % | 257,114 | 8 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.55 | (0.01 | ) | 1.43 | 1.42 | (0.06 | ) | — | (0.06 | ) | 11.91 | 1.52% | 1.26% | (0.13%) | 13.64 | % | 230,964 | 13 | % | |||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 7.18 | 0.05 | 3.39 | 3.44 | (0.07 | ) | — | (0.07 | ) | 10.55 | 1.67% | 0.95% | 0.58% | 48.18 | % | 189,917 | 14 | % | ||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $14.72 | ($0.06 | ) | $0.34 | $0.28 | $— | $— | $— | $15.00 | 0.93% | 0.85% | (0.85%) | 1.90 | % | $21,823 | 11 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 13.32 | 0.06 | 1.49 | 1.55 | (0.15 | ) | — | (0.15 | ) | 14.72 | 0.94% | 0.85% | 0.41% | 11.67 | % | 20,326 | 1 | % | ||||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 12.40 | 0.07 | 0.96 | 1.03 | (0.11 | ) | — | (0.11 | ) | 13.32 | 0.96% | 0.85% | 0.55% | 8.38 | % | 17,844 | 25 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 12.03 | 0.07 | 0.40 | 0.47 | (0.10 | ) | — | (0.10 | ) | 12.40 | 0.97% | 0.85% | 0.57% | 3.97 | % | 14,710 | 8 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.67 | 0.04 | 1.44 | 1.48 | (0.12 | ) | — | (0.12 | ) | 12.03 | 1.02% | 0.76% | 0.37% | 14.00 | % | 17,265 | 13 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 7.30 | 0.10 | 3.39 | 3.49 | (0.12 | ) | — | (0.12 | ) | 10.67 | 1.17% | 0.45% | 1.08% | 48.07 | % | 12,211 | 14 | % | ||||||||||||||||||||||||||||||||
Advisor Class |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $14.75 | ($0.03 | ) | $0.34 | $0.31 | $— | $— | $— | $15.06 | 0.43% | 0.35% | (0.35%) | 2.10 | % | $8,155 | 11 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 13.34 | 0.12 | 1.51 | 1.63 | (0.22 | ) | — | (0.22 | ) | 14.75 | 0.44% | 0.40% | 0.86% | 12.21 | % | 5,111 | 1 | % | ||||||||||||||||||||||||||||||||
12/31/2012 - 3/31/2013 | 12.50 | (0.01 | ) | 0.85 | 0.84 | — | — | — | 13.34 | 0.45% | 0.40% | (0.40%) | 6.72 | % | 2,470 | 25 | % | |||||||||||||||||||||||||||||||||
PL Portfolio Optimization Aggressive Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $15.23 | ($0.05 | ) | $0.30 | $0.25 | $— | $— | $— | $15.48 | 0.69% | 0.60% | (0.60%) | 1.64 | % | $167,030 | 11 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 13.50 | 0.08 | 1.77 | 1.85 | (0.12 | ) | — | (0.12 | ) | 15.23 | 0.71% | 0.60% | 0.58% | 13.70 | % | 161,858 | 5 | % | ||||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 12.56 | 0.07 | 0.96 | 1.03 | (0.09 | ) | — | (0.09 | ) | 13.50 | 0.73% | 0.60% | 0.57% | 8.30 | % | 133,265 | 30 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 12.29 | 0.06 | 0.27 | 0.33 | (0.06 | ) | — | (0.06 | ) | 12.56 | 0.74% | 0.60% | 0.52% | 2.73 | % | 122,397 | 13 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.66 | 0.05 | 1.65 | 1.70 | (0.07 | ) | — | (0.07 | ) | 12.29 | 0.80% | 0.51% | 0.44% | 16.11 | % | 114,246 | 26 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 6.92 | 0.09 | 3.75 | 3.84 | (0.10 | ) | — | (0.10 | ) | 10.66 | 0.94% | 0.20% | 0.94% | 55.84 | % | 98,669 | 26 | % | ||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $14.94 | ($0.10 | ) | $0.30 | $0.20 | $— | $— | $— | $15.14 | 1.44% | 1.35% | (1.35%) | 1.34 | % | $36,494 | 11 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 13.22 | (0.02 | ) | 1.76 | 1.74 | (0.02 | ) | — | (0.02 | ) | 14.94 | 1.46% | 1.35% | (0.17%) | 13.13 | % | 37,704 | 5 | % | |||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 12.28 | (0.02 | ) | 0.96 | 0.94 | (0.00 | )(6) | — | (0.00 | )(6) | 13.22 | 1.48% | 1.35% | (0.17%) | 7.69 | % | 33,013 | 30 | % | |||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 12.03 | (0.03 | ) | 0.28 | 0.25 | — | — | — | 12.28 | 1.49% | 1.35% | (0.23%) | 2.08 | % | 31,969 | 13 | % | |||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.46 | (0.03 | ) | 1.65 | 1.62 | (0.05 | ) | — | (0.05 | ) | 12.03 | 1.55% | 1.25% | (0.31%) | 15.62 | % | 30,693 | 26 | % | |||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 6.72 | 0.02 | 3.75 | 3.77 | (0.03 | ) | — | (0.03 | ) | 10.46 | 1.69% | 0.95% | 0.19% | 56.15 | % | 28,776 | 26 | % | ||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $14.93 | ($0.10 | ) | $0.30 | $0.20 | $— | $— | $— | $15.13 | 1.44% | 1.35% | (1.35%) | 1.34 | % | $104,094 | 11 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 13.22 | (0.02 | ) | 1.75 | 1.73 | (0.02 | ) | — | (0.02 | ) | 14.93 | 1.46% | 1.35% | (0.17%) | 13.12 | % | 101,888 | 5 | % | |||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 12.28 | (0.02 | ) | 0.97 | 0.95 | (0.01 | ) | — | (0.01 | ) | 13.22 | 1.48% | 1.35% | (0.18%) | 7.71 | % | 81,754 | 30 | % | |||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 12.03 | (0.03 | ) | 0.28 | 0.25 | — | — | — | 12.28 | 1.49% | 1.35% | (0.23%) | 2.08 | % | 76,613 | 13 | % | |||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.46 | (0.03 | ) | 1.65 | 1.62 | (0.05 | ) | — | (0.05 | ) | 12.03 | 1.55% | 1.25% | (0.31%) | 15.61 | % | 75,607 | 26 | % | |||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 6.71 | 0.02 | 3.75 | 3.77 | (0.02 | ) | — | (0.02 | ) | 10.46 | 1.69% | 0.95% | 0.19% | 56.11 | % | 68,230 | 26 | % | ||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $15.15 | ($0.07 | ) | $0.30 | $0.23 | $— | $— | $— | $15.38 | 0.94% | 0.85% | (0.85%) | 1.52 | % | $8,864 | 11 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 13.43 | 0.05 | 1.75 | 1.80 | (0.08 | ) | — | (0.08 | ) | 15.15 | 0.96% | 0.85% | 0.33% | 13.45 | % | 8,151 | 5 | % | ||||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 12.48 | 0.04 | 0.97 | 1.01 | (0.06 | ) | — | (0.06 | ) | 13.43 | 0.98% | 0.85% | 0.33% | 8.17 | % | 7,251 | 30 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 12.22 | 0.03 | 0.26 | 0.29 | (0.03 | ) | — | (0.03 | ) | 12.48 | 0.99% | 0.85% | 0.27% | 2.43 | % | 6,662 | 13 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.61 | 0.02 | 1.65 | 1.67 | (0.06 | ) | — | (0.06 | ) | 12.22 | 1.05% | 0.76% | 0.19% | 16.02 | % | 5,553 | 26 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 6.88 | 0.06 | 3.76 | 3.82 | (0.09 | ) | — | (0.09 | ) | 10.61 | 1.19% | 0.45% | 0.69% | 55.70 | % | 4,448 | 26 | % |
See Notes to Financial Statements | See explanation of references on B-14 |
B-11
PACIFIC LIFE FUNDS
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period ended were as follows:
|
| Selected Per Share Data |
| Ratios to Average Net Assets | Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||||||||||||||||||||
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 | Net Investment Income | Capital Gains | Total | Net Asset Value, End of Year or Period | Expenses Before Reductions (2) | Expenses After Reductions (2), (3) | Net Investment Income (Loss) (2) | Total Returns (4) | Net Assets, End of Year or Period (in thousands) | Portfolio Turnover Rates | ||||||||||||||||||||||||||||||||||||
PL Portfolio Optimization Aggressive Fund (Continued) |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Advisor Class | ||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $15.23 | ($0.03 | ) | $0.31 | $0.28 | $— | $— | $— | $15.51 | 0.44% | 0.35% | (0.35%) | 1.84 | % | $5,088 | 11 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 13.51 | 0.11 | 1.76 | 1.87 | (0.15 | ) | — | (0.15 | ) | 15.23 | 0.46% | 0.40% | 0.78% | 13.84 | % | 2,719 | 5 | % | ||||||||||||||||||||||||||||||||
12/31/2012 - 3/31/2013 | 12.56 | (0.01 | ) | 0.96 | 0.95 | — | — | — | 13.51 | 0.48% | 0.40% | (0.40%) | 7.56 | % | 222 | 30 | % | |||||||||||||||||||||||||||||||||
PL Diversified Alternatives Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $9.99 | ($0.01 | ) | $0.32 | $0.31 | $— | $— | $— | $10.30 | 4.62% | 0.85% | (0.28%) | 3.10 | % | $1,025 | 11 | % | |||||||||||||||||||||||||||||||||
12/31/2013 - 3/31/2014) | 10.00 | (0.01 | ) | (0.00 | )(6) | (0.01 | ) | — | — | — | 9.99 | 3.36% | 0.85% | (0.34%) | (0.10 | %) | 10 | 1 | % | |||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $9.97 | ($0.05 | ) | $0.32 | $0.27 | $— | $— | $— | $10.24 | 5.37% | 1.60% | (1.03%) | 2.71 | % | $221 | 11 | % | |||||||||||||||||||||||||||||||||
12/31/2013 - 3/31/2014 | 10.00 | (0.03 | ) | (0.00 | )(6) | (0.03 | ) | — | — | — | 9.97 | 4.11% | 1.60% | (1.09%) | (0.30 | %) | 10 | 1 | % | |||||||||||||||||||||||||||||||
Advisor Class | ||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $9.99 | ($0.00 | ) | $0.33 | $0.33 | $— | $— | $— | $10.32 | 4.37% | 0.60% | (0.03%) | 3.30 | % | $2,195 | 11 | % | |||||||||||||||||||||||||||||||||
12/31/2013 - 3/31/2014 | 10.00 | (0.00 | )(6) | (0.01 | ) | (0.01 | ) | — | — | — | 9.99 | 3.11% | 0.60% | (0.09%) | (0.10 | %) | 1,978 | 1 | % | |||||||||||||||||||||||||||||||
PL Short Duration Income Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $10.46 | $0.09 | ($0.05 | ) | $0.04 | ($0.09 | ) | $— | ($0.09 | ) | $10.41 | 1.09% | 0.85% | 1.68% | 0.33 | % | $52,543 | 23 | % | |||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 10.46 | 0.17 | 0.04 | 0.21 | (0.18 | ) | (0.03 | ) | (0.21 | ) | 10.46 | 1.14% | 0.85% | 1.68% | 2.00 | % | 60,012 | 98 | % | |||||||||||||||||||||||||||||||
6/29/2012 - 3/31/2013 | 10.20 | 0.16 | 0.32 | 0.48 | (0.15 | ) | (0.07 | ) | (0.22 | ) | 10.46 | 1.24% | 0.85% | 2.02% | 4.78 | % | 22,589 | 146 | % | |||||||||||||||||||||||||||||||
Class C |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $10.45 | $0.05 | ($0.05 | ) | $— | ($0.05 | ) | $— | ($0.05 | ) | $10.40 | 1.84% | 1.60% | 0.93% | (0.02 | %) | $29,707 | 23 | % | |||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 10.45 | 0.10 | 0.03 | 0.13 | (0.10 | ) | (0.03 | ) | (0.13 | ) | 10.45 | 1.89% | 1.60% | 0.93% | 1.28 | % | 23,769 | 98 | % | |||||||||||||||||||||||||||||||
6/29/2012 - 3/31/2013 | 10.20 | 0.10 | 0.33 | 0.43 | (0.11 | ) | (0.07 | ) | (0.18 | ) | 10.45 | 1.99% | 1.60% | 1.27% | 4.28 | % | 10,307 | 146 | % | |||||||||||||||||||||||||||||||
Class I |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $10.45 | $0.10 | ($0.05 | ) | $0.05 | ($0.10 | ) | $— | ($0.10 | ) | $10.40 | 0.69% | 0.59% | 1.94% | 0.47 | % | $1,070 | 23 | % | |||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 10.45 | 0.21 | 0.02 | 0.23 | (0.20 | ) | (0.03 | ) | (0.23 | ) | 10.45 | 0.74% | 0.60% | 1.93% | 2.20 | % | 979 | 98 | % | |||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 10.14 | 0.23 | 0.38 | 0.61 | (0.23 | ) | (0.07 | ) | (0.30 | ) | 10.45 | 1.08% | 0.60% | 2.27% | 6.10 | % | 13,280 | 146 | % | |||||||||||||||||||||||||||||||
12/19/2011 - 3/31/2012 | 10.00 | 0.06 | 0.15 | 0.21 | (0.07 | ) | — | (0.07 | ) | 10.14 | 2.04% | 0.60% | 2.06% | 2.10 | % | 12,251 | 73 | % | ||||||||||||||||||||||||||||||||
Advisor Class |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $10.46 | $0.10 | ($0.05 | ) | $0.05 | ($0.10 | ) | $— | ($0.10 | ) | $10.41 | 0.84% | 0.60% | 1.93% | 0.47 | % | $47,781 | 23 | % | |||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 10.46 | 0.20 | 0.03 | 0.23 | (0.20 | ) | (0.03 | ) | (0.23 | ) | 10.46 | 0.89% | 0.60% | 1.93% | 2.25 | % | 9,595 | 98 | % | |||||||||||||||||||||||||||||||
6/29/2012 - 3/31/2013 | 10.20 | 0.18 | 0.31 | 0.49 | (0.16 | ) | (0.07 | ) | (0.23 | ) | 10.46 | 0.99% | 0.60% | 2.27% | 4.85 | % | 3,148 | 146 | % | |||||||||||||||||||||||||||||||
PL Income Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Class A |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $10.66 | $0.16 | $0.03 | $0.19 | ($0.16 | ) | $— | ($0.16 | ) | $10.69 | 1.15% | 0.92% | 3.00% | 1.80 | % | $199,794 | 30 | % | ||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 10.92 | 0.32 | (0.09 | ) | 0.23 | (0.33 | ) | (0.16 | ) | (0.49 | ) | 10.66 | 1.16% | 0.90% | 3.03% | 2.27 | % | 221,086 | 120 | % | ||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 10.61 | 0.30 | 0.55 | 0.85 | (0.29 | ) | (0.25 | ) | (0.54 | ) | 10.92 | 1.17% | 0.90% | 2.76% | 8.13 | % | 333,987 | 171 | % | |||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.16 | 0.30 | 0.48 | 0.78 | (0.30 | ) | (0.03 | ) | (0.33 | ) | 10.61 | 1.35% | 0.90% | 2.94% | 7.79 | % | 247,522 | 199 | % | |||||||||||||||||||||||||||||||
12/31/2010 - 3/31/2011 | 10.00 | 0.09 | 0.16 | 0.25 | (0.09 | ) | — | (0.09 | ) | 10.16 | 1.77% | 0.90% | 3.62% | 2.46 | % | 5,300 | 142 | % | ||||||||||||||||||||||||||||||||
Class C |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $10.66 | $0.12 | $0.03 | $0.15 | ($0.12 | ) | $— | ($0.12 | ) | $10.69 | 1.90% | 1.67% | 2.25% | 1.43 | % | $146,984 | 30 | % | ||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 10.93 | 0.24 | (0.10 | ) | 0.14 | (0.25 | ) | (0.16 | ) | (0.41 | ) | 10.66 | 1.91% | 1.65% | 2.28% | 1.41 | % | 122,946 | 120 | % | ||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 10.62 | 0.22 | 0.55 | 0.77 | (0.21 | ) | (0.25 | ) | (0.46 | ) | 10.93 | 1.92% | 1.65% | 2.01% | 7.37 | % | 160,472 | 171 | % | |||||||||||||||||||||||||||||||
6/30/2011 - 3/31/2012 | 10.32 | 0.17 | 0.33 | 0.50 | (0.17 | ) | (0.03 | ) | (0.20 | ) | 10.62 | 2.07% | 1.65% | 2.17% | 4.89 | % | 76,726 | 199 | % | |||||||||||||||||||||||||||||||
Class I |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $10.67 | $0.18 | $0.03 | $0.21 | ($0.18 | ) | $— | ($0.18 | ) | $10.70 | 0.75% | 0.65% | 3.27% | 1.93 | % | $1,050 | 30 | % | ||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 10.93 | 0.35 | (0.09 | ) | 0.26 | (0.36 | ) | (0.16 | ) | (0.52 | ) | 10.67 | 0.76% | 0.65% | 3.28% | 2.53 | % | 1,187 | 120 | % | ||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 10.62 | 0.33 | 0.55 | 0.88 | (0.32 | ) | (0.25 | ) | (0.57 | ) | 10.93 | 0.77% | 0.65% | 3.01% | 8.39 | % | 1,794 | 171 | % | |||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.16 | 0.36 | 0.44 | 0.80 | (0.31 | ) | (0.03 | ) | (0.34 | ) | 10.62 | 0.95% | 0.65% | 3.42% | 7.95 | % | 1,292 | 199 | % | |||||||||||||||||||||||||||||||
12/31/2010 - 3/31/2011 | 10.00 | 0.10 | 0.15 | 0.25 | (0.09 | ) | — | (0.09 | ) | 10.16 | 1.37% | 0.65% | 3.87% | 2.48 | % | 51,231 | 142 | % | ||||||||||||||||||||||||||||||||
Advisor Class |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $10.68 | $0.18 | $0.04 | $0.22 | ($0.18 | ) | $— | ($0.18 | ) | $10.72 | 0.90% | 0.67% | 3.25% | 2.02 | % | $124,097 | 30 | % | ||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 10.95 | 0.35 | (0.10 | ) | 0.25 | (0.36 | ) | (0.16 | ) | (0.52 | ) | 10.68 | 0.91% | 0.65% | 3.28% | 2.53 | % | 69,489 | 120 | % | ||||||||||||||||||||||||||||||
6/29/2012 - 3/31/2013 | 10.79 | 0.24 | 0.41 | 0.65 | (0.24 | ) | (0.25 | ) | (0.49 | ) | 10.95 | 0.94% | 0.67% | 2.99% | 5.97 | % | 93,966 | 171 | % |
See Notes to Financial Statements | See explanation of references on B-14 |
B-12
PACIFIC LIFE FUNDS
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period ended were as follows:
|
| Selected Per Share Data |
| Ratios to Average Net Assets | Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||||||||||||||||||||
For the Year or Period Ended | Net Asset Value, Beginning of Year or Period | Net Investment Income (1) | Net Realized and Unrealized Gain (Loss) | Total | Net Investment Income | Capital Gains | Total | Net Asset Value, End of Year or Period | Expenses Before Reductions (2) | Expenses After Reductions (2), (3) | Net Investment Income (2) | Total Returns (4) | Net Assets, End of Year or Period (in thousands) | Portfolio Turnover Rates | ||||||||||||||||||||||||||||||||||||
PL Strategic Income Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Class A |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $11.20 | $0.22 | ($0.16 | ) | $0.06 | ($0.21 | ) | $— | ($0.21 | ) | $11.05 | 1.29% | 1.05% | 3.95% | 0.53 | % | $49,019 | 75 | % | |||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 11.23 | 0.48 | 0.30 | 0.78 | (0.49 | ) | (0.32 | ) | (0.81 | ) | 11.20 | 1.43% | 1.05% | 4.34% | 7.25 | % | 37,896 | 190 | % | |||||||||||||||||||||||||||||||
6/29/2012 - 3/31/2013 | 10.53 | 0.38 | 0.98 | 1.36 | (0.36 | ) | (0.30 | ) | (0.66 | ) | 11.23 | 1.47% | 1.05% | 4.55% | 13.12 | % | 20,963 | 353 | % | |||||||||||||||||||||||||||||||
Class C |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $11.19 | $0.18 | ($0.17 | ) | $0.01 | ($0.17 | ) | $— | ($0.17 | ) | $11.03 | 2.04% | 1.80% | 3.20% | 0.09 | % | $37,763 | 75 | % | |||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 11.22 | 0.40 | 0.30 | 0.70 | (0.41 | ) | (0.32 | ) | (0.73 | ) | 11.19 | 2.18% | 1.80% | 3.59% | 6.51 | % | 23,451 | 190 | % | |||||||||||||||||||||||||||||||
6/29/2012 - 3/31/2013 | 10.53 | 0.32 | 0.98 | 1.30 | (0.31 | ) | (0.30 | ) | (0.61 | ) | 11.22 | 2.22% | 1.80% | 3.80% | 12.52 | % | 7,948 | 353 | % | |||||||||||||||||||||||||||||||
Class I |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $11.15 | $0.24 | ($0.17 | ) | $0.07 | ($0.23 | ) | $— | ($0.23 | ) | $10.99 | 0.89% | 0.78% | 4.21% | 0.57 | % | $1,919 | 75 | % | |||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 11.18 | 0.52 | 0.28 | 0.80 | (0.51 | ) | (0.32 | ) | (0.83 | )�� | 11.15 | 1.03% | 0.80% | 4.59% | 7.51 | % | 1,686 | 190 | % | |||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 10.40 | 0.52 | 1.09 | 1.61 | (0.53 | ) | (0.30 | ) | (0.83 | ) | 11.18 | 1.22% | 0.80% | 4.80% | 15.94 | % | 22,099 | 353 | % | |||||||||||||||||||||||||||||||
12/19/2011 - 3/31/2012 | 10.00 | 0.14 | 0.38 | 0.52 | (0.12 | ) | — | (0.12 | ) | 10.40 | 1.78% | 0.80% | 4.84% | 5.22 | % | 17,796 | 156 | % | ||||||||||||||||||||||||||||||||
Advisor Class |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $11.20 | $0.23 | ($0.15 | ) | $0.08 | ($0.23 | ) | $— | ($0.23 | ) | $11.05 | 1.03% | 0.80% | 4.20% | 0.66 | % | $50,578 | 75 | % | |||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 11.24 | 0.51 | 0.29 | 0.80 | (0.52 | ) | (0.32 | ) | (0.84 | ) | 11.20 | 1.18% | 0.80% | 4.59% | 7.42 | % | 9,302 | 190 | % | |||||||||||||||||||||||||||||||
6/29/2012 - 3/31/2013 | 10.53 | 0.40 | 0.97 | 1.37 | (0.36 | ) | (0.30 | ) | (0.66 | ) | 11.24 | 1.24% | 0.82% | 4.78% | 13.31 | % | 1,575 | 353 | % | |||||||||||||||||||||||||||||||
PL Floating Rate Income Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Class A |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $10.51 | $0.22 | ($0.17 | ) | $0.05 | ($0.22 | ) | $— | ($0.22 | ) | $10.34 | 1.30% | 1.05% | 4.09% | 0.46 | % | $284,600 | 54 | % | |||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 10.46 | 0.40 | 0.04 | 0.44 | (0.37 | ) | (0.02 | ) | (0.39 | ) | 10.51 | 1.30% | 1.05% | 3.86% | 4.30 | % | 375,848 | 123 | % | |||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 10.07 | 0.46 | 0.46 | 0.92 | (0.43 | ) | (0.10 | ) | (0.53 | ) | 10.46 | 1.43% | 1.05% | 4.46% | 9.36 | % | 125,007 | 186 | % | |||||||||||||||||||||||||||||||
12/30/2011 - 3/31/2012 | 9.81 | 0.13 | 0.24 | 0.37 | (0.11 | ) | — | (0.11 | ) | 10.07 | 1.55% | 1.05% | 5.33% | 3.79 | % | 12,071 | 139 | % | ||||||||||||||||||||||||||||||||
Class C |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $10.50 | �� | $0.18 | ($0.18 | ) | $— | ($0.18 | ) | $— | ($0.18 | ) | $10.32 | 2.05% | 1.80% | 3.34% | 0.00 | % (6) | $218,243 | 54 | % | ||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 10.45 | 0.33 | 0.04 | 0.37 | (0.30 | ) | (0.02 | ) | (0.32 | ) | 10.50 | 2.05% | 1.80% | 3.11% | 3.57 | % | 214,365 | 123 | % | |||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 10.07 | 0.38 | 0.46 | 0.84 | (0.36 | ) | (0.10 | ) | (0.46 | ) | 10.45 | 2.18% | 1.80% | 3.71% | 8.56 | % | 63,045 | 186 | % | |||||||||||||||||||||||||||||||
12/30/2011 - 3/31/2012 | 9.81 | 0.11 | 0.25 | 0.36 | (0.10 | ) | — | (0.10 | ) | 10.07 | 2.30% | 1.80% | 4.61% | 3.68 | % | 3,372 | 139 | % | ||||||||||||||||||||||||||||||||
Class I |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $10.53 | $0.23 | ($0.17 | ) | $0.06 | ($0.23 | ) | $— | ($0.23 | ) | $10.36 | 0.90% | 0.80% | 4.34% | 0.59 | % | $105,106 | 54 | % | |||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 10.47 | 0.43 | 0.05 | 0.48 | (0.40 | ) | (0.02 | ) | (0.42 | ) | 10.53 | 0.90% | 0.80% | 4.11% | 4.65 | % | 96,635 | 123 | % | |||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 10.08 | 0.48 | 0.46 | 0.94 | (0.45 | ) | (0.10 | ) | (0.55 | ) | 10.47 | 1.03% | 0.80% | 4.71% | 9.56 | % | 10,726 | 186 | % | |||||||||||||||||||||||||||||||
6/30/2011 - 3/31/2012 | 10.00 | 0.34 | 0.06 | 0.40 | (0.32 | ) | — | (0.32 | ) | 10.08 | 1.24% | 0.80% | 4.60% | 4.11 | % | 41,834 | 139 | % | ||||||||||||||||||||||||||||||||
Class P |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $10.52 | $0.23 | ($0.17 | ) | $0.06 | ($0.23 | ) | $— | ($0.23 | ) | $10.35 | 0.90% | 0.80% | 4.34% | 0.59 | % | $429 | 54 | % | |||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 10.47 | 0.43 | 0.04 | 0.47 | (0.40 | ) | (0.02 | ) | (0.42 | ) | 10.52 | 0.90% | 0.80% | 4.11% | 4.53 | % | 249 | 123 | % | |||||||||||||||||||||||||||||||
12/31/2012 - 3/31/2013 | 10.29 | 0.12 | 0.16 | 0.28 | (0.10 | ) | — | (0.10 | ) | 10.47 | 0.99% | 0.80% | 4.70% | 2.74 | % | 14 | 186 | % | ||||||||||||||||||||||||||||||||
Advisor Class |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $10.54 | $0.23 | ($0.17 | ) | $0.06 | ($0.23 | ) | $— | ($0.23 | ) | $10.37 | 1.05% | 0.80% | 4.34% | 0.59 | % | $385,421 | 54 | % | |||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 10.49 | 0.43 | 0.04 | 0.47 | (0.40 | ) | (0.02 | ) | (0.42 | ) | 10.54 | 1.05% | 0.80% | 4.11% | 4.54 | % | 368,122 | 123 | % | |||||||||||||||||||||||||||||||
6/29/2012 - 3/31/2013 | 10.12 | 0.36 | 0.45 | 0.81 | (0.34 | ) | (0.10 | ) | (0.44 | ) | 10.49 | 1.15% | 0.80% | 4.70% | 8.13 | % | 35,648 | 186 | % | |||||||||||||||||||||||||||||||
PL Limited Duration High Income Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Class A |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $10.22 | $0.22 | ($0.24 | ) | ($0.02 | ) | ($0.23 | ) | $— | ($0.23 | ) | $9.97 | 1.68% | 1.08% | 4.38% | (0.25 | %) | $10,448 | 28 | % | ||||||||||||||||||||||||||||||
7/31/2013 - 3/31/2014 | 10.00 | 0.26 | 0.22 | 0.48 | (0.25 | ) | (0.01 | ) | (0.26 | ) | 10.22 | 1.67% | 1.08% | 3.94% | 4.85 | % | 8,677 | 53 | % | |||||||||||||||||||||||||||||||
Class C |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $10.20 | $0.18 | ($0.24 | ) | ($0.06 | ) | ($0.19 | ) | $— | ($0.19 | ) | $9.95 | 2.41% | 1.83% | 3.63% | (0.59 | %) | $4,172 | 28 | % | ||||||||||||||||||||||||||||||
7/31/2013 - 3/31/2014 | 10.00 | 0.21 | 0.22 | 0.43 | (0.22 | ) | (0.01 | ) | (0.23 | ) | 10.20 | 2.42% | 1.83% | 3.19% | 4.28 | % | 2,442 | 53 | % | |||||||||||||||||||||||||||||||
Class I |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $10.22 | $0.24 | ($0.25 | ) | ($0.01 | ) | ($0.24 | ) | $— | ($0.24 | ) | $9.97 | 1.28% | 0.81% | 4.65% | (0.02 | %) | $22,206 | 28 | % | ||||||||||||||||||||||||||||||
7/31/2013 - 3/31/2014 | 10.00 | 0.28 | 0.21 | 0.49 | (0.26 | ) | (0.01 | ) | (0.27 | ) | 10.22 | 1.27% | 0.83% | 4.19% | 4.87 | % | 22,227 | 53 | % | |||||||||||||||||||||||||||||||
Advisor Class |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $10.21 | $0.24 | ($0.25 | ) | ($0.01 | ) | ($0.24 | ) | $— | ($0.24 | ) | $9.96 | 1.43% | 0.83% | 4.63% | (0.12 | %) | $2,040 | 28 | % | ||||||||||||||||||||||||||||||
7/31/2013 - 3/31/2014 | 10.00 | 0.28 | 0.21 | 0.49 | (0.27 | ) | (0.01 | ) | (0.28 | ) | 10.21 | 1.42% | 0.83% | 4.19% | 4.89 | % | 1,860 | 53 | % |
See Notes to Financial Statements | See explanation of references on B-14 |
B-13
PACIFIC LIFE FUNDS
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period ended were as follows:
|
| Selected Per Share Data |
| Ratios to Average Net Assets | Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||||||||||||||||||||
For the Year or Period Ended | Net Asset Value, Beginning of Year or Period | Net Investment Income (1) | Net Realized and Unrealized Gain (Loss) | Total | Net Investment Income | Capital Gains | Total | Net Asset Value, End of Year or Period | Expenses Before Reductions (2) | Expenses After Reductions (2), (3) | Net Investment Income (2) | Total Returns (4) | Net Assets, End of Year or Period (in thousands) | Portfolio Turnover Rates | ||||||||||||||||||||||||||||||||||||
PL High Income Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
Class A |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $11.22 | $0.26 | ($0.33 | ) | ($0.07 | ) | ($0.26 | ) | $— | ($0.26 | ) | $10.89 | 1.50% | 1.05% | 4.71% | (0.66 | %) | $8,665 | 47 | % | ||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 11.16 | 0.56 | 0.25 | 0.81 | (0.55 | ) | (0.20 | ) | (0.75 | ) | 11.22 | 1.67% | 1.05% | 5.03% | 7.50 | % | 6,441 | 99 | % | |||||||||||||||||||||||||||||||
6/29/2012 - 3/31/2013 | 10.57 | 0.46 | 0.84 | 1.30 | (0.44 | ) | (0.27 | ) | (0.71 | ) | 11.16 | 1.87% | 1.05% | 5.57% | 12.59 | % | 3,497 | 154 | % | |||||||||||||||||||||||||||||||
Class C |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $11.21 | $0.22 | ($0.33 | ) | ($0.11 | ) | ($0.22 | ) | $— | ($0.22 | ) | $10.88 | 2.25% | 1.80% | 3.96% | (1.03 | %) | $5,826 | 47 | % | ||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 11.16 | 0.47 | 0.25 | 0.72 | (0.47 | ) | (0.20 | ) | (0.67 | ) | 11.21 | 2.42% | 1.80% | 4.28% | 6.65 | % | 5,245 | 99 | % | |||||||||||||||||||||||||||||||
6/29/2012 - 3/31/2013 | 10.57 | 0.40 | 0.85 | 1.25 | (0.39 | ) | (0.27 | ) | (0.66 | ) | 11.16 | 2.62% | 1.80% | 4.82% | 12.11 | % | 2,203 | 154 | % | |||||||||||||||||||||||||||||||
Class I |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $11.14 | $0.28 | ($0.33 | ) | ($0.05 | ) | ($0.28 | ) | $— | ($0.28 | ) | $10.81 | 1.10% | 0.78% | 4.97% | (0.53 | %) | $9,445 | 47 | % | ||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 11.09 | 0.58 | 0.24 | 0.82 | (0.57 | ) | (0.20 | ) | (0.77 | ) | 11.14 | 1.27% | 0.80% | 5.28% | 7.72 | % | 9,493 | 99 | % | |||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 10.58 | 0.63 | 0.82 | 1.45 | (0.67 | ) | (0.27 | ) | (0.94 | ) | 11.09 | 1.78% | 0.80% | 5.82% | 14.21 | % | 8,810 | 154 | % | |||||||||||||||||||||||||||||||
12/19/2011 - 3/31/2012 | 10.00 | 0.20 | 0.55 | 0.75 | (0.17 | ) | — | (0.17 | ) | 10.58 | 2.82% | 0.80% | 6.73% | 7.50 | % | 7,523 | 93 | % | ||||||||||||||||||||||||||||||||
Advisor Class |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (5) | $11.23 | $0.28 | ($0.34 | ) | ($0.06 | ) | ($0.27 | ) | $— | ($0.27 | ) | $10.90 | 1.25% | 0.80% | 4.96% | (0.54 | %) | $4,269 | 47 | % | ||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 11.18 | 0.58 | 0.24 | 0.82 | (0.57 | ) | (0.20 | ) | (0.77 | ) | 11.23 | 1.42% | 0.80% | 5.28% | 7.67 | % | 3,064 | 99 | % | |||||||||||||||||||||||||||||||
6/29/2012 - 3/31/2013 | 10.57 | 0.48 | 0.85 | 1.33 | (0.45 | ) | (0.27 | ) | (0.72 | ) | 11.18 | 1.63% | 0.81% | 5.81% | 12.87 | % | 279 | 154 | % |
(1) | Net investment income (loss) per share has been calculated using the average shares method. |
(2) | The ratios are annualized for periods of less than one full year. |
(3) | The ratios of expenses after expense reductions to average net assets are after any advisory fee waivers and adviser expense reimbursements, as discussed in Notes 5 and 6B in Notes to Financial Statements. The expense ratios for all the PL Portfolio Optimization Funds and PL Diversified Alternatives Fund do not include fees and expenses of the underlying funds (see Note 1 in Notes to Financial Statements) in which the PL Portfolio Optimization Funds and PL Diversified Alternatives Fund invest. |
(4) | The total returns include reinvestment of all dividends and capital gains 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. |
(5) | Unaudited. |
(6) | Amount represents less than $0.005 per share or less than 0.005%. |
See Notes to Financial Statements |
B-14
PACIFIC LIFE FUNDS
(Unaudited)
1. ORGANIZATION
The 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, 2014, the Trust was comprised of thirty-three separate funds, twelve of which are presented in these financial statements (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”); the PL Diversified Alternatives Fund; and the PL Short Duration Income Fund, PL Income Fund, PL Strategic Income Fund, PL Floating Rate Income Fund, PL Limited Duration High Income Fund and PL High Income Fund.
The Portfolio Optimization Funds offer Class A, Class B, Class C, Class R and Advisor Class shares. The PL Diversified Alternatives Fund offers Class A, Class C and Advisor Class shares. Each class is distinguished by its applicable sales charges and level of distribution and/or service fees (see Note 5) 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 and Advisor Class shares are sold at net asset value (“NAV”) without a 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, which may be waived in certain circumstances.
The PL Short Duration Income Fund, PL Income Fund, PL Strategic Income Fund, PL Floating Rate Income Fund, PL Limited Duration High Income Fund and PL High Income Fund offer Class A, Class C, Class I and Advisor Class shares. Additionally, the PL Floating Rate Income Fund offers Class P shares. Each class is distinguished by its applicable sales charges and level of distribution and/or service fees (see Note 5) and in general: (i) Class A shares of the PL Short Duration Income, PL Floating Rate Income and PL Limited Duration High 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; and (iii) Class I, Class P and Advisor Class shares are sold at NAV without a 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, which may be waived in certain circumstances.
The Trust’s distributor receives all net commissions (front-end sales charges and CDSCs) 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 PL Diversified Alternatives Fund invests in the PL Underlying Funds and Class P shares of the PL Floating Rate Income Fund.
There is a separate semi-annual report containing the financial statements for the PL Underlying Funds, which is available without charge. For information on how to obtain the semi-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 Funds are investment companies and, accordingly, follow the investment company accounting and reporting guidance under U.S. generally accepted accounting principles (“U.S. GAAP”). 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 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-backed and asset-backed securities are recorded as interest income.
C-1
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
B. DISTRIBUTIONS TO SHAREHOLDERS
For the Portfolio Optimization Funds and the PL Diversified Alternatives Fund, dividends on net investment income, if any, are generally declared and paid annually. For the PL Short Duration Income Fund, PL Income Fund, PL Strategic Income Fund, PL Floating Rate Income Fund, PL Limited Duration High Income Fund and PL High Income Fund, dividends, if any, are generally declared and paid monthly. Dividends may be declared more or less frequently if advantageous to the specific Fund and its shareholders.
All realized capital gains are distributed at least annually for each Fund. Dividends 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, denominated 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
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 Notes 5 and 6A). All such costs are amortized as an expense of the new Fund on a straight-line basis over twelve months from commencement of operations.
3. VALUATION AND FAIR VALUE MEASUREMENTS
A. VALUATION POLICY
The Trust’s Board of Trustees (the “Board”) has adopted a policy (“Valuation Policy”) for determining the value of the Trust’s investments each business day. Under the Valuation Policy, the Board has delegated certain functions to the Trustee Valuation Committee (“TVC”) and/or the Valuation Oversight Committee (“VOC”) or its delegate to determine the fair value of certain investments. Each valuation committee that values each Fund’s investments, which includes using third party pricing services, does so in accordance with the Valuation Policy. Notes 3B and 3C below describe in greater detail the methodologies used to value each Fund’s investments.
B. NET ASSET VALUE
Each Fund of the Trust presented in these financial statements is divided into shares and share classes. 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, subtracting a Fund’s liabilities, and dividing by the total number of shares outstanding.
Each Fund’s NAV is calculated once per day, every day the New York Stock Exchange (“NYSE”) is open, including days when foreign markets and/or bond 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 close of the NYSE on a particular day will not normally be used to retroactively adjust the price of an investment for that same business 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 investments 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 and other 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.
C-2
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
Portfolio Optimization Funds
The investments of each Portfolio Optimization Fund consist of Class P shares of the applicable PL Underlying Funds they hold, which are valued at their respective NAVs at the time of computation.
PL Diversified Alternatives Fund
The investments of the PL Diversified Alternatives Fund consist of Class P shares of the PL Floating Rate Income Fund and the applicable PL Underlying Funds it holds, which are valued at their respective NAVs at the time of computation.
Short-Term Investments
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 the 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 funds), the Trust uses the last reported sale price or official closing price from an exchange as of the time of the NYSE close and does 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 Debt Investments
Debt investments are generally valued using the mean between bid and ask prices provided by approved pricing and quotation services, which are based upon evaluated prices determined from various observable market and other factors. Certain debt investments are valued by using a benchmark, matrix, or other pricing methodologies approved pursuant to the Valuation Policy.
Investment Values Determined by a Valuation Committee
The Valuation Policy includes methodologies approved for valuing investments in circumstances where market quotations are not readily available. In such circumstances, the Valuation Policy provides that the value of such investments may be determined in accordance with Board approved formulas and methodologies (“Alternate Valuation Methodologies”). Under the Valuation Policy these Alternate Valuation Methodologies may include, among others, the use of broker quotes, the use of purchase prices for initial public offerings, and benchmark and matrix pricing. In the event market quotations or Alternate Valuation Methodologies are not readily available or are determined to be unreliable, the value of the investments will be determined in good faith by the TVC or determined by the VOC or its delegate pursuant to the Valuation Policy and then subsequently submitted for approval or ratification to either the TVC, or the Board. Valuations determined by the TVC or the VOC or its delegate 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 or values that would be obtained if a different valuation methodology had been used.
Market quotations are considered not readily available if: (i) the market quotations received are deemed unreliable or inaccurate, (ii) approved pricing services do not provide a valuation for a particular investment, or (iii) 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 Valuation Policy, the VOC determines the level in which each Fund’s investments are characterized. The VOC includes investment, legal and compliance members of the Trust’s Adviser, accounting members of the Trust’s Administrator, and the Trust’s Chief Compliance Officer (“CCO”). The three-tier hierarchy of inputs is summarized in the three broad levels listed below:
Ÿ Level 1 - | Quoted prices (unadjusted) in active markets for identical investments |
Ÿ Level 2 - | Significant observable market-based inputs, other than Level 1 quoted prices, or unobservable inputs that are corroborated by market data |
Ÿ Level 3 - | Significant unobservable inputs that are not corroborated by observable market data |
The VOC reviews the Valuation Policy periodically (at least annually) to determine the appropriateness of the pricing methodologies used to value the Trust’s investments. The VOC also periodically evaluates how the Trust’s investments are characterized within the three-tier hierarchy and the appropriateness of third party pricing sources. The VOC also periodically (at least annually) conducts back-testing of the value of various Level 2 and Level 3 investments to evaluate the effectiveness of the pricing methodologies including the unobservable inputs used to value those investments. Such back-testing includes comparing Level 2 and Level 3 investment values to subsequently available exchange-traded prices, transaction prices, and/or observable vendor prices. All changes to the Valuation Policy are reported to the Board on a quarterly basis with material changes, as determined by the Trust’s CCO, requiring approval by the Board.
The inputs or methodologies used for characterizing the Trust’s investments within the three-tier hierarchy are not necessarily an indication of the relative risks associated with investing in those investments. 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
C-3
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
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. The Trust also discloses the amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. A reconciliation of Level 3 investments is presented only when a Fund had an amount of Level 3 investments at the beginning and/or end of the reporting period that was meaningful in relation to its net assets. The amounts and reasons for all transfers in and out of each level within the three-tier hierarchy are disclosed only when a Fund had an amount of total transfers during the reporting period that was meaningful in relation to its net assets as of the end of the reporting period. A summary of each Fund’s investments as of September 30, 2014 as categorized under the three-tier hierarchy of inputs, and the reconciliation of Level 3 investments and information on transfers in and out of each level, if applicable, 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 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 registered 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 from market data sources. The models also take into consideration yield curves and data received from active market makers and inter-dealer brokers. Yield curves 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.
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 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 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.
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.
C-4
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
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 categorized as Level 2.
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 the assets owned by each 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 each 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).
The PL Diversified Alternatives Fund is exposed to the same risks as the PL Underlying Funds and PL Floating Rate Income Fund in direct proportion to the allocation of assets among those funds. This semi-annual report contains information about the risks associated with investing in the PL Floating Rate Income Fund. 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 and PL Floating Rate Income Fund are determined using an asset allocation process, which seeks to provide performance that has a low to moderate correlation with the performance of traditional equity and fixed income asset classes over long-term periods. The allocations of the PL Diversified Alternatives Fund may not effectively decrease risk or increase returns for investors, and the selection and weighting of allocations to asset classes and/or the PL Underlying Funds and PL Floating Rate Income Fund may cause them to underperform other mutual funds with a similar investment objective. The PL Diversified Alternatives Fund may invest a significant portion of its assets in any one or several PL Underlying Funds and PL Floating Rate Income Fund (See Note 6C).
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 factors discussed in General Investment Risks above.
Debt Investments
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 debt investments. There is a risk that an issuer of a Fund’s 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. Debt investments may be affected by changes in interest rates. Debt investments with longer durations tend to be more sensitive to changes in interest rates, making them more volatile than debt investments with shorter durations or floating or adjustable interest rates. The value of debt investments may fall when interest rates rise. Given the historically low interest rate environment in the U.S., risks associated with rising interest rates are heightened. Certain monetary policies enacted by the Federal Reserve (“Fed”) can have a significant impact on the financial markets and the Trust. The Fed’s tapering of its monetary stimulus quantitative easing (“QE”) program, by gradually winding down its bond purchases, may result in periods of dramatic market volatility and may negatively impact the value of debt securities. Additionally, new regulations applicable to and changing business practices of broker-dealers that make markets in debt investments may result in those broker-dealers restricting their market making activities for certain debt investments, which may reduce the liquidity and increase the volatility of such debt investments.
C-5
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
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.
Senior Loan Participations and Assignments
Certain Funds may invest in Senior Loans of domestic or foreign corporations, partnerships and other entities (“Borrowers”), the interest rates of which float or adjust periodically based upon a specified adjustment schedule, benchmark indicator, or prevailing interest rates. 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, London Interbank Offered Rates (“LIBOR”) 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 Federal Deposit Insurance Corporation (“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, 2014, no participation interest in Senior Loans was held by any of the Funds presented in these financial statements.
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, Treasury Notes, Treasury Bonds, and securities guaranteed by GNMA (or “Ginnie Mae”), are supported by the full faith and credit of the U.S. 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 U.S. 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 U.S. Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). FNMA and FHLMC are government-sponsored corporations, the common stocks of which are 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 U.S. 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 U.S. 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 Adviser to the Trust. PLFA manages the Portfolio Optimization Funds and the PL Diversified Alternatives Fund. PLFA also manages the PL Short Duration Income Fund, PL Income Fund, PL Strategic Income Fund, PL Floating Rate Income Fund, PL Limited Duration High Income
C-6
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
Fund and PL High Income Fund under the name Pacific Asset Management. PLFA receives investment 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:
Fund | Advisory Fee Rate | |
PL Portfolio Optimization Conservative PL Portfolio Optimization Moderate-Conservative PL Portfolio Optimization Moderate PL Portfolio Optimization Moderate-Aggressive PL Portfolio Optimization Aggressive PL Diversified Alternatives | 0.20% | |
PL Short Duration Income | 0.40% | |
PL Income | 0.50% | |
PL Strategic Income PL High Income | 0.60% | |
PL Floating Rate Income PL Limited Duration High Income (1) | 0.65% |
(1) | PLFA agreed to waive 0.02% of its advisory fee through July 31, 2015 for the PL Limited Duration High Income Fund. The agreement will terminate if the investment advisory agreement is terminated or upon approval by the Board. There is no guarantee that PLFA will continue such waivers after that date. |
Pursuant to an Administration and Shareholder Services Agreement (the “Administration Agreement”), Pacific Life serves as administrator (the “Administrator”) to the Trust. 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 compensates 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 reimburses Pacific Life and PLFA for these support services on an approximate cost basis.
Pacific Life receives an administration fee from each Fund and share class presented in these financial statements based on the following administration fee rates, which are based on an annual percentage of average daily net assets of each Fund:
Fund | Share Class | Administration Fee Rate | ||
PL Portfolio Optimization Funds (which invest in the PL Underlying Funds that also have an administration fee at an annual rate of 0.15%) | A, B, C, R and Advisor Class | 0.15% | ||
PL Diversified Alternatives Fund (which invests in the PL Underlying Funds and Class P Shares of the PL Floating Rate Income Fund that also have an administration fee at an annual rate of 0.15%) | A, C and Advisor Class | 0.15% | ||
PL Short Duration Income Fund PL Income Fund | A, C and Advisor Class | 0.30% | ||
PL Strategic Income Fund PL Limited Duration High Income Fund PL High Income Fund | I | 0.15% | ||
PL Floating Rate Income Fund | A, C, and Advisor Class | 0.30% | ||
I and P | 0.15% |
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 receives distribution and service fees pursuant to class-specific distribution and service plans, each adopted in accordance with Rule 12b-1 (12b-1) under the 1940 Act (together the “12b-1 Plans”) for Class B, C and R shares. The Distributor also receives service fees pursuant to a non-12b-1 Class A Service Plan (“Class A Plan”). The Distributor receives distribution and/or service fees from each Fund and applicable share class presented in these financial statements based on the following distribution and service fee rates, which are based on an annual percentage of average daily net assets:
Plan | Share Class | Distribution Fee Rate | Service Fee Rate | |||
12b-1 Plans | B and C | 0.75% | 0.25% | |||
R | 0.25% | 0.25% | ||||
Class A Plan | A | 0.25% |
There are no distribution and service fees for Class I, Class P and Advisor Class shares. The distribution and service fees are accrued daily. For the six-month period ended September 30, 2014, the Distributor, acting as underwriter, received net commissions (front-end sales charges) of $8,319,298 from the sale of Class A shares and received $266,550 in CDSC from redemptions of Class A, B and C shares.
C-7
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
6. TRANSACTIONS WITH AFFILIATES
A. ADVISORY FEES, ADMINISTRATION FEES, DISTRIBUTION AND/OR SERVICE FEES AND EXPENSES FOR SUPPORT SERVICES
The Adviser, the Distributor and Pacific Life are related parties. The advisory fees earned by the Adviser, the administration fees earned by Pacific Life, the distribution and/or service fees earned by the Distributor, and expenses for support services recovered by PLFA and Pacific Life (see Note 5) from each Fund presented in these financial statements for the six-month period ended September 30, 2014 are presented in the Statements of Operations. The amounts of each of these fees that remained payable as of September 30, 2014 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 presented in these financial statements 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 (including commitment fees, if any); 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 expense caps for each Fund and share class presented in these financial statements are as follows:
Fund | Share Class | Expense Caps | ||
PL Portfolio Optimization Funds | A, B, C and R | 0.15% through 7/31/2015 and 0.30% thereafter through 7/31/2023 | ||
Advisor Class | 0.15% through 7/31/2015, 0.20% from 8/1/2015 through 12/31/2015 and 0.30% thereafter through 7/31/2023 | |||
PL Diversified Alternatives Fund | A, C and Advisor Class | 0.40% through 7/31/2017 | ||
PL Short Duration Income Fund PL Strategic Income Fund | A, C and Advisor Class | 0.20% through 7/31/2016 | ||
PL Limited Duration High Income Fund | I | 0.15% through 7/31/2016 | ||
PL High Income Fund | ||||
PL Income Fund | A, C and Advisor Class | 0.15% through 7/31/2014 and 0.20% thereafter through 7/31/2016 | ||
I | 0.15% through 7/31/2016 | |||
PL Floating Rate Income Fund | A, C, P and Advisor Class | 0.15% through 12/31/2014 and 0.20% thereafter through 7/31/2016 | ||
I | 0.15% through 7/31/2016 |
There is no guarantee that PLFA will continue to reimburse expenses upon the expiration of the applicable expense limitation agreements.
Any expense reimbursements are subject to recoupment by 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 took place), to the extent that the recoupment would not cause the Fund to exceed the expense cap that was in effect at the time of the reimbursement. 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 presented in these financial statements during the six-month period ended September 30, 2014.
The Adviser expense reimbursement and the advisory fee waiver, if any, of each of the applicable Funds presented in these financial statements for the six-month period ended September 30, 2014 are presented in the Statements of Operations. Any amounts that remained due from the Adviser as of September 30, 2014 are presented in the Statements of Assets and Liabilities.
The cumulative expense reimbursement amounts, if any, as of September 30, 2014 that are subject to recoupment by PLFA from each Fund presented in these financial statements are as follows:
Funds | 3/31/2015 | 3/31/2016 | 3/31/2017 | 3/31/2018 | ||||||||||||||
PL Portfolio Optimization Conservative | $406,199 | $504,164 | $485,486 | $213,322 | ||||||||||||||
PL Portfolio Optimization Moderate-Conservative | 416,693 | 475,646 | 509,594 | 250,870 | ||||||||||||||
PL Portfolio Optimization Moderate | 1,027,703 | 1,124,770 | 1,236,620 | 635,774 | ||||||||||||||
PL Portfolio Optimization Moderate-Aggressive | 807,014 | 814,333 | 857,348 | 440,209 | ||||||||||||||
PL Portfolio Optimization Aggressive | 316,090 | 306,272 | 297,159 | 152,680 | ||||||||||||||
PL Diversified Alternatives | 12,535 | 42,596 | ||||||||||||||||
PL Short Duration Income | 42,485 | 97,734 | 192,031 | 131,885 | ||||||||||||||
PL Income | 651,413 | 1,323,370 | 1,326,276 | 532,141 | ||||||||||||||
PL Strategic Income | 45,025 | 118,217 | 181,996 | 123,885 | ||||||||||||||
PL Floating Rate Income | 123,956 | 347,661 | 1,642,470 | 1,192,096 | ||||||||||||||
PL Limited Duration High Income | 82,357 | 94,703 | ||||||||||||||||
PL High Income | 42,254 | 97,325 | 98,786 | 57,183 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $3,878,832 | $5,209,492 | $6,922,658 | $3,867,344 | ||||||||||||||
|
|
|
|
|
|
|
|
C-8
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
C . INVESTMENTS IN AFFILIATED FUNDS
As of September 30, 2014, each of the Portfolio Optimization Funds and the PL Diversified Alternatives Fund (aggregate of all share classes) owned Class P shares in each of the applicable affiliated PL Underlying Funds and PL Floating Rate Income Fund. A summary of holdings and transactions with affiliated mutual fund investments as of and for the six-month period ended September 30, 2014 is as follows:
Fund/Underlying Fund | Beginning | Purchase | Sales | Net | Change in | As of September 30, 2014 | ||||||||||||||||||||||
Ending Value | Shares Balance | |||||||||||||||||||||||||||
PL Portfolio Optimization Conservative Fund | ||||||||||||||||||||||||||||
PL Floating Rate Loan | $28,543,030 | $2,206,370 | $2,678,544 | $2,713 | $50,589 | $28,124,158 | 2,792,866 | |||||||||||||||||||||
PL Inflation Managed | 40,774,922 | 2,550,254 | 11,630,298 | (1,720,366 | ) | 2,486,864 | 32,461,376 | 3,606,820 | ||||||||||||||||||||
PL Managed Bond | 150,635,060 | 11,082,894 | 13,586,042 | (91,442 | ) | 3,428,400 | 151,468,870 | 13,769,897 | ||||||||||||||||||||
PL Short Duration Bond | 65,138,502 | 837,811 | 5,486,849 | (14,203 | ) | 271,689 | 60,746,950 | 6,020,510 | ||||||||||||||||||||
PL Emerging Markets Debt | 26,376,381 | 5,744,159 | 2,743,424 | (17,820 | ) | 43,670 | 29,402,966 | 3,015,689 | ||||||||||||||||||||
PL Comstock | 20,375,831 | 302,998 | 6,560,223 | 2,394,612 | (1,431,233 | ) | 15,081,985 | 813,484 | ||||||||||||||||||||
PL Growth | 4,599,951 | 2,327,215 | 587,876 | 6,774 | 209,605 | 6,555,669 | 364,002 | |||||||||||||||||||||
PL Large-Cap Growth | 10,634,553 | 126,874 | 2,431,860 | 100,066 | 355,686 | 8,785,319 | 813,455 | |||||||||||||||||||||
PL Large-Cap Value | 24,012,664 | 355,687 | 3,959,968 | 1,462,219 | (328,373 | ) | 21,542,229 | 1,228,177 | ||||||||||||||||||||
PL Main Street Core | 8,086,162 | 106,825 | 4,264,231 | 1,629,379 | (1,242,478 | ) | 4,315,657 | 274,010 | ||||||||||||||||||||
PL Mid-Cap Equity | 8,535,989 | 151,580 | 2,285,038 | 606,211 | (632,420 | ) | 6,376,322 | 497,373 | ||||||||||||||||||||
PL Mid-Cap Growth | 4,950,986 | — | 694,899 | (3,011 | ) | 34,365 | 4,287,441 | 520,953 | ||||||||||||||||||||
PL International Large-Cap | 11,283,090 | 5,777,508 | 3,034,739 | 742,354 | (916,352 | ) | 13,851,861 | 759,006 | ||||||||||||||||||||
PL International Value | 6,876,810 | 2,260,206 | 597,016 | 67,623 | (338,217 | ) | 8,269,406 | 831,932 | ||||||||||||||||||||
PL Currency Strategies | 11,470,557 | 2,229,994 | 1,175,754 | (37,642 | ) | 846,258 | 13,333,413 | 1,325,389 | ||||||||||||||||||||
PL Global Absolute Return | 25,024,799 | 744,582 | 4,695,458 | (38,954 | ) | 1,134,291 | 22,169,260 | 2,184,164 | ||||||||||||||||||||
PL Precious Metals | 3,254,088 | 915,529 | 391,918 | (246,147 | ) | (53,032 | ) | 3,478,520 | 646,565 | |||||||||||||||||||
$450,573,375 | $37,720,486 | $66,804,137 | $4,842,366 | $3,919,312 | $430,251,402 | |||||||||||||||||||||||
PL Portfolio Optimization Moderate-Conservative Fund | ||||||||||||||||||||||||||||
PL Floating Rate Loan | $34,464,021 | $1,481,314 | $1,237,298 | ($33,486 | ) | $103,065 | $34,777,616 | 3,453,586 | ||||||||||||||||||||
PL Inflation Managed | 42,474,816 | 3,539,487 | 6,047,901 | (1,058,250 | ) | 1,811,994 | 40,720,146 | 4,524,461 | ||||||||||||||||||||
PL Managed Bond | 117,716,374 | 24,218,403 | 3,801,872 | (66,581 | ) | 2,792,402 | 140,858,726 | 12,805,339 | ||||||||||||||||||||
PL Short Duration Bond | 59,644,245 | 1,962,041 | 3,032,641 | (14,656 | ) | 253,891 | 58,812,880 | 5,828,829 | ||||||||||||||||||||
PL Emerging Markets Debt | 24,888,885 | 3,907,594 | 869,938 | (46,824 | ) | 97,177 | 27,976,894 | 2,869,425 | ||||||||||||||||||||
PL Comstock | 35,779,162 | 583,561 | 8,992,661 | 2,966,450 | (1,222,106 | ) | 29,114,406 | 1,570,356 | ||||||||||||||||||||
PL Growth | 11,681,696 | 3,933,034 | 441,404 | (4,781 | ) | 540,617 | 15,709,162 | 872,247 | ||||||||||||||||||||
PL Large-Cap Growth | 21,227,796 | 247,877 | 2,898,814 | 146,432 | 831,125 | 19,554,416 | 1,810,594 | |||||||||||||||||||||
PL Large-Cap Value | 46,967,490 | 729,314 | 6,363,109 | 1,793,273 | 457,379 | 43,584,347 | 2,484,854 | |||||||||||||||||||||
PL Main Street Core | 30,375,809 | 424,657 | 3,204,772 | 847,569 | 921,916 | 29,365,179 | 1,864,456 | |||||||||||||||||||||
PL Mid-Cap Equity | 12,488,118 | 5,224,230 | 380,152 | 17,755 | (2,273 | ) | 17,347,678 | 1,353,173 | ||||||||||||||||||||
PL Mid-Cap Growth | 7,317,129 | 192,490 | 1,783,947 | (141,822 | ) | 171,815 | 5,755,665 | 699,352 | ||||||||||||||||||||
PL Small-Cap Growth | 7,708,132 | — | 1,450,221 | 268,688 | (757,295 | ) | 5,769,304 | 394,887 | ||||||||||||||||||||
PL Small-Cap Value | 5,856,536 | 11,240 | 173,988 | 5,350 | (276,191 | ) | 5,422,947 | 420,383 | ||||||||||||||||||||
PL Emerging Markets | 10,334,687 | 566,898 | 347,975 | 21,784 | 388,159 | 10,963,553 | 714,238 | |||||||||||||||||||||
PL International Large-Cap | 23,126,609 | 3,385,134 | 3,565,474 | 590,346 | (836,148 | ) | 22,700,467 | 1,243,861 | ||||||||||||||||||||
PL International Value | 16,712,529 | 393,200 | 2,635,900 | 398,291 | (925,490 | ) | 13,942,630 | 1,402,679 | ||||||||||||||||||||
PL Currency Strategies | 14,608,220 | 8,562,406 | 554,142 | (29,276 | ) | 1,247,268 | 23,834,476 | 2,369,232 | ||||||||||||||||||||
PL Global Absolute Return | 31,927,755 | 1,235,660 | 4,919,876 | (51,701 | ) | 1,509,039 | 29,700,877 | 2,926,195 | ||||||||||||||||||||
PL Precious Metals | 10,411,233 | 289,179 | 9,432,497 | (3,857,135 | ) | 4,408,912 | 1,819,692 | 338,233 | ||||||||||||||||||||
$565,711,242 | $60,887,719 | $62,134,582 | $1,751,426 | $11,515,256 | $577,731,061 | |||||||||||||||||||||||
PL Portfolio Optimization Moderate Fund | ||||||||||||||||||||||||||||
PL Floating Rate Loan | $60,152,863 | $7,004,557 | $1,444,859 | ($52,106 | ) | $149,215 | $65,809,670 | 6,535,220 | ||||||||||||||||||||
PL Inflation Managed | 73,375,793 | 3,060,165 | 36,799,343 | (3,569,596 | ) | 5,370,847 | 41,437,866 | 4,604,207 | ||||||||||||||||||||
PL Managed Bond | 221,932,405 | 42,458,271 | 5,481,618 | (110,263 | ) | 5,299,536 | 264,098,331 | 24,008,939 | ||||||||||||||||||||
PL Short Duration Bond | 90,643,911 | 17,010,194 | 2,232,357 | (10,265 | ) | 374,483 | 105,785,966 | 10,484,238 | ||||||||||||||||||||
PL Emerging Markets Debt | 59,512,117 | 21,968,762 | 1,607,528 | (110,826 | ) | (217,909 | ) | 79,544,616 | 8,158,422 | |||||||||||||||||||
PL Comstock | 127,436,455 | 930,834 | 20,224,618 | 5,711,183 | 703,059 | 114,556,913 | 6,178,906 | |||||||||||||||||||||
PL Growth | 43,505,083 | 8,424,290 | 1,116,179 | 2,747 | 1,873,423 | 52,689,364 | 2,925,562 | |||||||||||||||||||||
PL Large-Cap Growth | 67,576,645 | 2,025,667 | 1,493,660 | 67,178 | 3,390,101 | 71,565,931 | 6,626,475 | |||||||||||||||||||||
PL Large-Cap Value | 156,336,657 | 1,083,531 | 18,007,869 | 4,413,967 | 3,131,625 | 146,957,911 | 8,378,444 | |||||||||||||||||||||
PL Main Street Core | 100,178,462 | 595,098 | 7,546,226 | 1,518,378 | 4,395,524 | 99,141,236 | 6,294,682 | |||||||||||||||||||||
PL Mid-Cap Equity | 64,045,760 | 2,107,841 | 1,345,587 | 69,296 | (150,361 | ) | 64,726,949 | 5,048,904 | ||||||||||||||||||||
PL Mid-Cap Growth | 36,488,229 | 1,664,318 | 5,575,591 | (1,258,895 | ) | 1,480,119 | 32,798,180 | 3,985,198 | ||||||||||||||||||||
PL Small-Cap Growth | 18,542,720 | 7,668,555 | 442,550 | (6,880 | ) | (930,931 | ) | 24,830,914 | 1,699,583 | |||||||||||||||||||
PL Small-Cap Value | 53,908,924 | 1,094,247 | 6,118,303 | 469,904 | (2,868,141 | ) | 46,486,631 | 3,603,615 | ||||||||||||||||||||
PL Real Estate | 30,326,737 | 655,301 | 17,212,430 | 3,279,994 | (2,125,591 | ) | 14,924,011 | 1,011,112 | ||||||||||||||||||||
PL Emerging Markets | 60,927,866 | 1,183,229 | 2,175,916 | 113,118 | 2,433,057 | 62,481,354 | 4,070,447 | |||||||||||||||||||||
PL International Large-Cap | 96,425,278 | 26,367,516 | 9,018,787 | 787,592 | (2,192,400 | ) | 112,369,199 | 6,157,216 | ||||||||||||||||||||
PL International Value | 67,830,686 | 9,650,114 | 11,950,025 | 1,042,272 | (3,289,324 | ) | 63,283,723 | 6,366,572 | ||||||||||||||||||||
PL Currency Strategies | 56,028,832 | 25,531,605 | 1,607,529 | (130,068 | ) | 4,634,499 | 84,457,339 | 8,395,362 | ||||||||||||||||||||
PL Global Absolute Return | 75,451,004 | 2,628,824 | 14,030,625 | (180,530 | ) | 3,585,255 | 67,453,928 | 6,645,707 | ||||||||||||||||||||
PL Precious Metals | 29,920,389 | 825,890 | 18,871,595 | (8,894,716 | ) | 10,258,537 | 13,238,505 | 2,460,689 | ||||||||||||||||||||
$1,590,546,816 | $183,938,809 | $184,303,195 | $3,151,484 | $35,304,623 | $1,628,638,537 |
C-9
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
Fund/Underlying Fund | Beginning | Purchase | Sales | Net | Change in | As of September 30, 2014 | ||||||||||||||||||||||
Ending Value | Shares Balance | |||||||||||||||||||||||||||
PL Portfolio Optimization Moderate-Aggressive Fund | ||||||||||||||||||||||||||||
PL Inflation Managed | $29,080,686 | $1,485,405 | $15,036,042 | ($848,133 | ) | $1,594,869 | $16,276,785 | 1,808,532 | ||||||||||||||||||||
PL Managed Bond | 81,963,576 | 7,957,039 | 1,099,945 | (21,366 | ) | 1,899,736 | 90,699,040 | 8,245,367 | ||||||||||||||||||||
PL Short Duration Bond | 13,859,207 | 8,796,804 | 179,668 | (309 | ) | 55,563 | 22,531,597 | 2,233,062 | ||||||||||||||||||||
PL Emerging Markets Debt | 19,561,822 | 2,521,208 | 274,986 | (19,076 | ) | 64,012 | 21,852,980 | 2,241,331 | ||||||||||||||||||||
PL Comstock | 96,793,197 | 586,470 | 18,201,382 | 5,109,365 | (297,572 | ) | 83,990,078 | 4,530,209 | ||||||||||||||||||||
PL Growth | 29,775,712 | 14,573,214 | 454,654 | (3,931 | ) | 1,440,290 | 45,330,631 | 2,516,970 | ||||||||||||||||||||
PL Large-Cap Growth | 55,513,637 | 8,481,976 | 721,205 | 17,133 | 3,062,237 | 66,353,778 | 6,143,868 | |||||||||||||||||||||
PL Large-Cap Value | 118,883,548 | 1,161,200 | 24,722,411 | 6,522,853 | (952,441 | ) | 100,892,749 | 5,752,152 | ||||||||||||||||||||
PL Main Street Core | 91,206,723 | 396,272 | 6,469,635 | 1,539,891 | 3,836,638 | 90,509,889 | 5,746,660 | |||||||||||||||||||||
PL Mid-Cap Equity | 65,828,519 | 22,959,335 | 905,090 | 30,124 | 27,017 | 87,939,905 | 6,859,587 | |||||||||||||||||||||
PL Mid-Cap Growth | 30,497,324 | 1,169,103 | 3,707,951 | (180,309 | ) | 369,331 | 28,147,498 | 3,420,109 | ||||||||||||||||||||
PL Small-Cap Growth | 20,923,750 | 14,457,700 | 317,161 | (9,965 | ) | (933,115 | ) | 34,121,209 | 2,335,469 | |||||||||||||||||||
PL Small-Cap Value | 63,459,665 | 1,205,936 | 5,492,508 | 73,613 | (2,971,838 | ) | 56,274,868 | 4,362,393 | ||||||||||||||||||||
PL Real Estate | 31,125,430 | 425,914 | 11,722,480 | 2,064,360 | (860,787 | ) | 21,032,437 | 1,424,962 | ||||||||||||||||||||
PL Emerging Markets | 61,141,922 | 1,494,553 | 972,440 | 7,159 | 2,519,020 | 64,190,214 | 4,181,773 | |||||||||||||||||||||
PL International Large-Cap | 82,766,866 | 19,985,258 | 2,298,864 | (3,920 | ) | (1,276,538 | ) | 99,172,802 | 5,434,126 | |||||||||||||||||||
PL International Value | 65,543,418 | 7,101,470 | 5,118,572 | (728,504 | ) | (1,659,749 | ) | 65,138,063 | 6,553,125 | |||||||||||||||||||
PL Currency Strategies | 37,488,997 | 18,026,323 | 592,147 | (50,671 | ) | 3,115,133 | 57,987,635 | 5,764,178 | ||||||||||||||||||||
PL Global Absolute Return | 50,726,886 | 2,088,318 | 8,770,447 | (71,892 | ) | 2,388,539 | 46,361,404 | 4,567,626 | ||||||||||||||||||||
PL Precious Metals | 29,497,205 | 1,804,611 | 19,017,444 | (9,734,399 | ) | 10,308,730 | 12,858,703 | 2,390,093 | ||||||||||||||||||||
$1,075,638,090 | $136,678,109 | $126,075,032 | $3,692,023 | $21,729,075 | $1,111,662,265 | |||||||||||||||||||||||
PL Portfolio Optimization Aggressive Fund | ||||||||||||||||||||||||||||
PL Managed Bond | $7,502,689 | $2,694,158 | $245,756 | ($3,279 | ) | $184,368 | $10,132,180 | 921,107 | ||||||||||||||||||||
PL Emerging Markets Debt | — | 4,935,000 | — | — | (79,677 | ) | 4,855,323 | 497,982 | ||||||||||||||||||||
PL Comstock | 28,218,083 | 281,525 | 5,522,442 | 1,709,212 | (314,190 | ) | 24,372,188 | 1,314,573 | ||||||||||||||||||||
PL Growth | 11,725,315 | 1,225,286 | 418,041 | (2,774 | ) | 490,543 | 13,020,329 | 722,950 | ||||||||||||||||||||
PL Large-Cap Growth | 17,663,593 | 1,804,112 | 627,061 | (59,689 | ) | 1,016,071 | 19,797,026 | 1,833,058 | ||||||||||||||||||||
PL Large-Cap Value | 34,093,324 | 489,982 | 6,873,294 | 1,900,739 | (306,491 | ) | 29,304,260 | 1,670,710 | ||||||||||||||||||||
PL Main Street Core | 27,670,854 | 1,073,216 | 940,591 | 8,761 | 1,680,280 | 29,492,520 | 1,872,541 | |||||||||||||||||||||
PL Mid-Cap Equity | 20,497,114 | 7,308,583 | 742,769 | 7,052 | 5,634 | 27,075,614 | 2,111,982 | |||||||||||||||||||||
PL Mid-Cap Growth | 11,514,373 | 155,816 | 365,786 | 11,289 | 72,859 | 11,388,551 | 1,383,785 | |||||||||||||||||||||
PL Small-Cap Growth | 12,743,130 | 1,440,774 | 382,484 | 15,604 | (747,826 | ) | 13,069,198 | 894,538 | ||||||||||||||||||||
PL Small-Cap Value | 24,482,429 | 1,150,567 | 2,910,113 | 49,655 | (1,177,070 | ) | 21,595,468 | 1,674,067 | ||||||||||||||||||||
PL Real Estate | 12,226,245 | 171,751 | 3,708,040 | 639,697 | (160,389 | ) | 9,169,264 | 621,224 | ||||||||||||||||||||
PL Emerging Markets | 20,755,394 | 1,118,934 | 944,129 | 9,457 | 859,957 | 21,799,613 | 1,420,170 | |||||||||||||||||||||
PL International Large-Cap | 26,957,722 | 3,214,898 | 940,591 | (6,997 | ) | (346,108 | ) | 28,878,924 | 1,582,407 | |||||||||||||||||||
PL International Value | 19,625,384 | 2,469,182 | 679,316 | (8,967 | ) | (795,170 | ) | 20,611,113 | 2,073,553 | |||||||||||||||||||
PL Currency Strategies | 10,936,568 | 5,350,414 | 451,435 | (26,166 | ) | 932,318 | 16,741,699 | 1,664,185 | ||||||||||||||||||||
PL Global Absolute Return | 14,730,829 | 1,055,406 | 3,001,308 | (12,975 | ) | 691,753 | 13,463,705 | 1,326,474 | ||||||||||||||||||||
PL Precious Metals | 11,228,703 | 1,402,937 | 6,203,022 | (3,520,628 | ) | 3,562,069 | 6,470,059 | 1,202,613 | ||||||||||||||||||||
$312,571,749 | $37,342,541 | $34,956,178 | $709,991 | $5,568,931 | $321,237,034 |
Fund/Underlying Fund | Beginning | Purchase | Distributions Received and Reinvested (2) | Sales | Net Realized Gain (Loss) | Change in | As of September 30, 2014 | |||||||||||||||||||||||||
Ending Value | Shares Balance | |||||||||||||||||||||||||||||||
PL Diversified Alternatives Fund | ||||||||||||||||||||||||||||||||
PL Floating Rate Income | $249,066 | $188,819 | $6,441 | $9,032 | ($51 | ) | ($5,839 | ) | $429,404 | 41,488 | ||||||||||||||||||||||
PL Inflation Managed | 100,246 | 72,827 | — | 5,034 | 29 | 566 | 168,634 | 18,737 | ||||||||||||||||||||||||
PL Emerging Markets Debt | 249,595 | 182,070 | — | 12,760 | 85 | (3,355 | ) | 415,635 | 42,629 | |||||||||||||||||||||||
PL Real Estate | 160,966 | 109,242 | — | 88,139 | (1,085 | ) | 3,863 | 184,847 | 12,523 | |||||||||||||||||||||||
PL Emerging Markets | 145,367 | 172,542 | — | 10,055 | 35 | (1,159 | ) | 306,730 | 19,982 | |||||||||||||||||||||||
PL Currency Strategies | 459,503 | 403,992 | — | 18,063 | (258 | ) | 36,316 | 881,490 | 87,623 | |||||||||||||||||||||||
PL Global Absolute Return | 495,091 | 436,285 | — | 18,063 | 103 | 27,809 | 941,225 | 92,732 | ||||||||||||||||||||||||
PL Precious Metals | 111,484 | 72,831 | — | 93,148 | (398 | ) | (8,074 | ) | 82,695 | 15,371 | ||||||||||||||||||||||
$1,971,318 | $1,638,608 | $6,441 | $254,294 | ($1,540 | ) | $50,127 | $3,410,660 |
(1) | Purchase cost excludes distributions received and reinvested, if any. |
(2) | Distributions received include net investment income distributions from the PL Floating Rate Income Fund. |
As of September 30, 2014, Pacific Life owned the following percentages of the total shares outstanding (aggregate of all share classes) of each of the following Funds:
Fund | Ownership Percentage | |||
PL Diversified Alternatives | 59.90% | |||
PL Limited Duration High Income | 56.54% | |||
PL High Income | 32.81% |
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 those committees. The fees and expenses of the independent trustees of the Board are presented in the Statements of Operations.
C-10
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
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. Deferred 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 without a sales load, of Class A shares of the Portfolio Optimization Funds, PL Diversified Alternatives Fund, PL Short Duration Income Fund, PL Income Fund, PL Strategic Income Fund, PL Floating Rate Income Fund, PL Limited Duration High Income and/or PL High Income Fund, and/or Class P shares of the corresponding PL Underlying Funds. 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 expenses (trustees’ fees and expenses).
For the six-month period ended September 30, 2014, such expenses increased by $1,342 for all applicable Funds presented in these financial statements as a result of the market value appreciation on such accounts. As of September 30, 2014, the total amount in the DCP Liability accounts for all applicable Funds presented in these financial statements was $13,760.
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, 2014, the PL Floating Rate Income Fund had unfunded loan commitments of $332,342 (see details in the Notes to Schedule of Investments).
8. COMMITTED LINE OF CREDIT
Effective August 8, 2014, the Trust has an unsecured $75,000,000 committed revolving line of credit agreement with The Bank of New York Mellon (the “Bank”), which will be renewed annually. The committed line of credit will expire on August 7, 2015, unless renewed and applies to the PL Floating Rate Income Fund only. The interest rate on borrowing is the higher of the Federal funds effective rate or the Overnight Eurodollar rate, plus 1.20%. The PL Floating Rate Income Fund pays the Bank a commitment fee equal to 0.18% per annum on the daily unused portion of the committed line up to a maximum of $135,000. As of September 30, 2014, the actual interest rate on borrowing by the Trust was 1.28%. The commitment fees and interest incurred by the PL Floating Rate Income Fund are recorded as an expense. As of and for the period ended September 30, 2014, the PL Floating Rate Income Fund had no loans outstanding in connection with this line of credit.
9. PURCHASES AND SALES OF INVESTMENTS
The cost of purchases and proceeds from sales of investments (excluding short-term investments) for the six-month period ended September 30, 2014, are summarized in the following table:
U.S. Government Securities | Other Securities | |||||||||||||||
Fund | Purchases | Sales | Purchases | Sales | ||||||||||||
PL Portfolio Optimization Conservative | $— | $— | $37,720,486 | $66,804,137 | ||||||||||||
PL Portfolio Optimization Moderate-Conservative | — | — | 60,887,719 | 62,134,582 | ||||||||||||
PL Portfolio Optimization Moderate | — | — | 183,938,809 | 184,303,195 | ||||||||||||
PL Portfolio Optimization Moderate-Aggressive | — | — | 136,678,109 | 126,075,032 | ||||||||||||
PL Portfolio Optimization Aggressive | — | — | 37,342,541 | 34,956,178 | ||||||||||||
PL Diversified Alternatives | — | — | 1,645,049 | 254,294 | ||||||||||||
PL Short Duration Income | — | — | 61,262,074 | 24,270,091 | ||||||||||||
PL Income | — | — | 182,969,795 | 130,429,911 | ||||||||||||
PL Strategic Income | — | — | 145,964,925 | 74,613,310 | ||||||||||||
PL Floating Rate Income | — | — | 560,719,803 | 582,250,015 | ||||||||||||
PL Limited Duration High Income | — | — | 14,343,911 | 10,398,084 | ||||||||||||
PL High Income | — | — | 17,874,549 | 12,368,311 |
C-11
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 September 30, 2014, 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.
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, 2014:
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 | Long-Term Capital Losses | Total | |||||||||||||||||||||||
PL Portfolio Optimization Conservative | $— | $— | $4,111,288 | $755,588 | $— | $— | $755,588 | |||||||||||||||||||||||
PL Portfolio Optimization Moderate-Conservative | — | — | 6,846,501 | 1,347,248 | — | — | 1,347,248 | |||||||||||||||||||||||
PL Portfolio Optimization Moderate | — | 342,325 | 17,188,697 | — | — | — | — | |||||||||||||||||||||||
PL Portfolio Optimization Moderate-Aggressive | (5,747,574 | ) | 758,317 | — | — | — | — | — | ||||||||||||||||||||||
PL Portfolio Optimization Aggressive | (16,342,075 | ) | 1,417,848 | — | — | — | — | — | ||||||||||||||||||||||
PL Diversified Alternatives | (44 | ) | 723 | — | — | — | — | — | ||||||||||||||||||||||
PL Short Duration Income | — | 121,634 | 93,591 | — | — | — | — | |||||||||||||||||||||||
PL Income | (2,795,442 | ) | 178,151 | — | — | — | — | — | ||||||||||||||||||||||
PL Strategic Income | — | 434,743 | 187,673 | — | — | — | — | |||||||||||||||||||||||
PL Floating Rate Income | — | 2,826,606 | 257,129 | — | — | — | — | |||||||||||||||||||||||
PL Limited Duration High Income | — | 108,301 | — | — | — | — | — | |||||||||||||||||||||||
PL High Income | — | 72,960 | 63,044 | — | — | — | — |
Accumulated capital losses represent net capital loss carryovers as of March 31, 2014 that may be available to offset future realized capital gains and thereby reduce future capital gains distributions. The following table shows the expiration dates and the amounts of capital loss carryover, if any, by each of the applicable Funds as of March 31, 2014 and capital loss carryover from prior years utilized during the year ended March 31, 2014:
Accumulated Capital Loss Carryover | Capital Loss Carryover Utilized during the Year Ended March 31, 2014 | |||||||||||||||||||||||||
Net Capital Loss Carryover Expiring In | Unlimited Period of Net Capital Loss Carryover | |||||||||||||||||||||||||
Fund | 2018 | 2019 | Short-Term | Long-Term | ||||||||||||||||||||||
PL Portfolio Optimization Moderate | $— | $— | $— | $— | $— | $7,260,600 | ||||||||||||||||||||
PL Portfolio Optimization Moderate-Aggressive | (1,638,469 | ) | (4,109,105 | ) | — | — | (5,747,574 | ) | 21,084,796 | |||||||||||||||||
PL Portfolio Optimization Aggressive | (13,311,679 | ) | (3,030,396 | ) | — | — | (16,342,075 | ) | 8,335,846 | |||||||||||||||||
PL Diversified Alternatives | — | — | (44 | ) | — | (44 | ) | — | ||||||||||||||||||
PL Income | — | — | (2,795,442 | ) | — | (2,795,442 | ) | — |
The aggregate Federal tax cost of investments and the composition of unrealized appreciation and depreciation on investments as of September 30, 2014, were as follows:
Net | ||||||||||||||||
Fund | Total Cost of Investments on Tax Basis (1) | Gross Unrealized Appreciation on Investments | Gross Unrealized Depreciation on Investments | Unrealized Appreciation (Depreciation) on Investments | ||||||||||||
PL Portfolio Optimization Conservative | $399,774,693 | $35,312,539 | ($4,835,830 | ) | $30,476,709 | |||||||||||
PL Portfolio Optimization Moderate-Conservative | 507,798,274 | 73,697,299 | (3,764,512 | ) | 69,932,787 | |||||||||||
PL Portfolio Optimization Moderate | 1,356,527,230 | 276,108,965 | (3,997,658 | ) | 272,111,307 | |||||||||||
PL Portfolio Optimization Moderate-Aggressive | 882,781,348 | 230,182,423 | (1,301,506 | ) | 228,880,917 | |||||||||||
PL Portfolio Optimization Aggressive | 244,410,234 | 77,519,967 | (693,167 | ) | 76,826,800 | |||||||||||
PL Diversified Alternatives | 3,367,582 | 52,118 | (9,040 | ) | 43,078 | |||||||||||
PL Short Duration Income | 135,548,926 | 626,057 | (735,836 | ) | (109,779 | ) | ||||||||||
PL Income | 465,860,145 | 6,555,233 | (3,406,682 | ) | 3,148,551 | |||||||||||
PL Strategic Income | 144,690,525 | 702,529 | (2,579,111 | ) | (1,876,582 | ) | ||||||||||
PL Floating Rate Income | 1,005,757,763 | 1,763,473 | (13,587,941 | ) | (11,824,468 | ) | ||||||||||
PL Limited Duration High Income | 39,576,914 | 100,180 | (679,733 | ) | (579,553 | ) | ||||||||||
PL High Income | 28,082,256 | 209,564 | (586,737 | ) | (377,173 | ) |
(1) | The difference between the total cost of investments on tax basis and the total investments, at cost, as presented in the Statements of Assets and Liabilities is primarily due to wash sale loss deferrals. |
C-12
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
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. Management has analyzed all open tax years, as defined by the statute of limitations, for all major jurisdictions and has determined that no provision for income tax is required in the financial statements. Each Fund remains subject to examination by Federal and State tax authorities for the returns filed for tax years ended after March 31, 2010.
11. TAX CHARACTER OF DISTRIBUTIONS
The tax character of income and capital gains distributions to shareholders during the six-month period ended September 30, 2014 and the year ended March 31, 2014, were as follows:
For the Six-Month Period Ended September 30, 2014 | For the Year or Period Ended March 31, 2014 | |||||||||||||||||||||||||
Fund | Ordinary Income | Long-Term Capital Gains | Total Distributions | Ordinary Income | Long-Term Capital Gains | Total Distributions | ||||||||||||||||||||
PL Portfolio Optimization Conservative | $— | $— | $— | $5,460,595 | $6,134,372 | $11,594,967 | ||||||||||||||||||||
PL Portfolio Optimization Moderate-Conservative | — | — | — | 6,743,410 | 2,168,567 | 8,911,977 | ||||||||||||||||||||
PL Portfolio Optimization Moderate | — | — | — | 16,326,870 | — | 16,326,870 | ||||||||||||||||||||
PL Portfolio Optimization Moderate-Aggressive | — | — | — | 10,155,380 | — | 10,155,380 | ||||||||||||||||||||
PL Portfolio Optimization Aggressive | — | — | — | 1,491,679 | — | 1,491,679 | ||||||||||||||||||||
PL Short Duration Income | 859,715 | — | 859,715 | 1,139,922 | 106,700 | 1,246,622 | ||||||||||||||||||||
PL Income | 6,392,668 | — | 6,392,668 | 19,930,857 | 1,554,717 | 21,485,574 | ||||||||||||||||||||
PL Strategic Income | 1,998,302 | — | 1,998,302 | 3,181,001 | 431,207 | 3,612,208 | ||||||||||||||||||||
PL Floating Rate Income | 21,527,979 | — | 21,527,979 | 26,416,987 | 203,021 | 26,620,008 | ||||||||||||||||||||
PL Limited Duration High Income | 867,973 | — | 867,973 | 755,621 | — | 755,621 | ||||||||||||||||||||
PL High Income | 671,005 | — | 671,005 | 1,087,466 | 151,149 | 1,238,615 |
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, 2014 and the year ended March 31, 2014 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 9/30/2014 | Year Ended 3/31/2014 | Six-Month Period Ended 9/30/2014 | Year Ended 3/31/2014 | Six-Month Period Ended 9/30/2014 | Year Ended 3/31/2014 | Six-Month Period Ended 9/30/2014 | Year Ended 3/31/2014 | |||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||
Shares sold | 1,524,784 | 4,942,877 | 2,315,688 | 6,879,857 | 5,980,189 | 17,055,382 | 3,638,676 | 10,167,433 | ||||||||||||||||||||||||||||||
Dividends and distribution reinvested | — | 454,671 | — | 385,490 | — | 745,915 | — | 454,847 | ||||||||||||||||||||||||||||||
Shares repurchased | (3,338,982 | ) | (8,753,448 | ) | (2,789,394 | ) | (5,631,263 | ) | (6,345,744 | ) | (9,643,856 | ) | (3,002,106 | ) | (5,647,809 | ) | ||||||||||||||||||||||
Net increase (decrease) | (1,814,198 | ) | (3,355,900 | ) | (473,706 | ) | 1,634,084 | (365,555 | ) | 8,157,441 | 636,570 | 4,974,471 | ||||||||||||||||||||||||||
Beginning shares outstanding | 16,874,999 | 20,230,899 | 22,018,370 | 20,384,286 | 58,264,115 | 50,106,674 | 37,674,579 | 32,700,108 | ||||||||||||||||||||||||||||||
Ending shares outstanding | 15,060,801 | 16,874,999 | 21,544,664 | 22,018,370 | 57,898,560 | 58,264,115 | 38,311,149 | 37,674,579 | ||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||
Shares sold | 164,686 | 600,047 | 225,915 | 756,807 | 618,049 | 2,072,525 | 498,779 | 1,283,068 | ||||||||||||||||||||||||||||||
Dividends and distribution reinvested | — | 73,528 | — | 53,633 | — | 71,875 | — | 46,681 | ||||||||||||||||||||||||||||||
Shares repurchased | (294,801 | ) | (883,916 | ) | (312,130 | ) | (695,998 | ) | (725,210 | ) | (1,401,567 | ) | (662,706 | ) | (1,157,375 | ) | ||||||||||||||||||||||
Net increase (decrease) | (130,115 | ) | (210,341 | ) | (86,215 | ) | 114,442 | (107,161 | ) | 742,833 | (163,927 | ) | 172,374 | |||||||||||||||||||||||||
Beginning shares outstanding | 3,515,767 | 3,726,108 | 4,230,565 | 4,116,123 | 11,264,334 | 10,521,501 | 8,174,707 | 8,002,333 | ||||||||||||||||||||||||||||||
Ending shares outstanding | 3,385,652 | 3,515,767 | 4,144,350 | 4,230,565 | 11,157,173 | 11,264,334 | 8,010,780 | 8,174,707 | ||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||
Shares sold | 1,921,110 | 5,496,261 | 2,141,166 | 5,730,743 | 4,321,413 | 12,449,379 | 2,183,032 | 6,832,110 | ||||||||||||||||||||||||||||||
Dividends and distribution reinvested | — | 388,883 | — | 229,207 | — | 269,646 | — | 151,707 | ||||||||||||||||||||||||||||||
Shares repurchased | (2,699,981 | ) | (7,137,458 | ) | (1,685,351 | ) | (3,821,553 | ) | (3,465,335 | ) | (6,319,924 | ) | (1,900,085 | ) | (3,660,260 | ) | ||||||||||||||||||||||
Net increase (decrease) | (778,871 | ) | (1,252,314 | ) | 455,815 | 2,138,397 | 856,078 | 6,399,101 | 282,947 | 3,323,557 | ||||||||||||||||||||||||||||
Beginning shares outstanding | 18,339,511 | 19,591,825 | 18,490,428 | 16,352,031 | 40,826,793 | 34,427,692 | 25,733,388 | 22,409,831 | ||||||||||||||||||||||||||||||
Ending shares outstanding | 17,560,640 | 18,339,511 | 18,946,243 | 18,490,428 | 41,682,871 | 40,826,793 | 26,016,335 | 25,733,388 | ||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||
Shares sold | 147,758 | 247,915 | 107,666 | 180,943 | 290,730 | 654,585 | 203,240 | 389,822 | ||||||||||||||||||||||||||||||
Dividends and distribution reinvested | — | 25,454 | — | 9,476 | — | 24,360 | — | 14,741 | ||||||||||||||||||||||||||||||
Shares repurchased | (75,283 | ) | (370,686 | ) | (138,450 | ) | (165,137 | ) | (495,147 | ) | (692,933 | ) | (129,238 | ) | (363,968 | ) | ||||||||||||||||||||||
Net increase (decrease) | 72,475 | (97,317 | ) | (30,784 | ) | 25,282 | (204,417 | ) | (13,988 | ) | 74,002 | 40,595 | ||||||||||||||||||||||||||
Beginning shares outstanding | 990,502 | 1,087,819 | 562,564 | 537,282 | 2,266,688 | 2,280,676 | 1,380,476 | 1,339,881 | ||||||||||||||||||||||||||||||
Ending shares outstanding | 1,062,977 | 990,502 | 531,780 | 562,564 | 2,062,271 | 2,266,688 | 1,454,478 | 1,380,476 | ||||||||||||||||||||||||||||||
Advisor Class | ||||||||||||||||||||||||||||||||||||||
Shares sold | 648,399 | 380,137 | 314,262 | 228,282 | 941,169 | 1,358,108 | 315,194 | 247,651 | ||||||||||||||||||||||||||||||
Dividends and distribution reinvested | — | 5,529 | — | 2,244 | — | 13,996 | — | 3,438 | ||||||||||||||||||||||||||||||
Shares repurchased | (191,692 | ) | (162,986 | ) | (68,337 | ) | (71,691 | ) | (618,106 | ) | (205,909 | ) | (120,416 | ) | (89,654 | ) | ||||||||||||||||||||||
Net increase | 456,707 | 222,680 | 245,925 | 158,835 | 323,063 | 1,166,195 | 194,778 | 161,435 | ||||||||||||||||||||||||||||||
Beginning shares outstanding | 342,427 | 119,747 | 231,529 | 72,694 | 1,426,272 | 260,077 | 346,592 | 185,157 | ||||||||||||||||||||||||||||||
Ending shares outstanding | 799,134 | 342,427 | 477,454 | 231,529 | 1,749,335 | 1,426,272 | 541,370 | 346,592 |
C-13
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
PL Portfolio Optimization Aggressive Fund | PL Diversified Alternatives Fund (1) | PL Short Duration Income Fund | PL Income Fund | |||||||||||||||||||||||||||||||||||
Six-Month Period Ended 9/30/2014 | Year Ended 3/31/2014 | Six-Month Period Ended 9/30/2014 | Period Ended 3/31/2014 | Six-Month Period Ended 9/30/2014 | Year Ended 3/31/2014 | Six-Month Period Ended 9/30/2014 | Year Ended 3/31/2014 | |||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||
Shares sold | 1,121,082 | 2,624,015 | 103,105 | 1,000 | 2,498,408 | 5,786,475 | 3,603,487 | 7,742,757 | ||||||||||||||||||||||||||||||
Dividends and distribution reinvested | — | 78,895 | — | — | 38,288 | 67,184 | 275,170 | 988,608 | ||||||||||||||||||||||||||||||
Shares repurchased | (961,705 | ) | (1,941,985 | ) | (4,566 | ) | — | (3,226,774 | ) | (2,277,091 | ) | (5,929,590 | ) | (18,571,752 | ) | |||||||||||||||||||||||
Net increase (decrease) | 159,377 | 760,925 | 98,539 | 1,000 | (690,078 | ) | 3,576,568 | (2,050,933 | ) | (9,840,387 | ) | |||||||||||||||||||||||||||
Beginning shares outstanding | 10,630,093 | 9,869,168 | 1,000 | — | 5,735,535 | 2,158,967 | 20,734,328 | 30,574,715 | ||||||||||||||||||||||||||||||
Ending shares outstanding | 10,789,470 | 10,630,093 | 99,539 | 1,000 | 5,045,457 | 5,735,535 | 18,683,395 | 20,734,328 | ||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||
Shares sold | 127,543 | 372,637 | ||||||||||||||||||||||||||||||||||||
Dividends and distribution reinvested | — | 2,540 | ||||||||||||||||||||||||||||||||||||
Shares repurchased | (240,359 | ) | (348,813 | ) | ||||||||||||||||||||||||||||||||||
Net increase (decrease) | (112,816 | ) | 26,364 | |||||||||||||||||||||||||||||||||||
Beginning shares outstanding | 2,523,128 | 2,496,764 | ||||||||||||||||||||||||||||||||||||
Ending shares outstanding | 2,410,312 | 2,523,128 | ||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||
Shares sold | 957,406 | 2,046,521 | 49,668 | 1,000 | 962,961 | 1,914,770 | 3,658,945 | 2,860,533 | ||||||||||||||||||||||||||||||
Dividends and distribution reinvested | — | 10,244 | — | — | 11,194 | 21,400 | 136,198 | 418,451 | ||||||||||||||||||||||||||||||
Shares repurchased | (900,748 | ) | (1,417,993 | ) | (29,103 | ) | — | (392,086 | ) | (647,286 | ) | (1,579,520 | ) | (6,439,014 | ) | |||||||||||||||||||||||
Net increase (decrease) | 56,658 | 638,772 | 20,565 | 1,000 | 582,069 | 1,288,884 | 2,215,623 | (3,160,030 | ) | |||||||||||||||||||||||||||||
Beginning shares outstanding | 6,823,138 | 6,184,366 | 1,000 | — | 2,275,442 | 986,558 | 11,528,144 | 14,688,174 | ||||||||||||||||||||||||||||||
Ending shares outstanding | 6,879,796 | 6,823,138 | 21,565 | 1,000 | 2,857,511 | 2,275,442 | 13,743,767 | 11,528,144 | ||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||
Shares sold | 58,568 | 69,394 | 14,020 | 7,553 | ||||||||||||||||||||||||||||||||||
Dividends and distribution reinvested | 936 | 3,152 | 1,607 | 3,838 | ||||||||||||||||||||||||||||||||||
Shares repurchased | (50,269 | ) | (1,250,216 | ) | (28,770 | ) | (64,268 | ) | ||||||||||||||||||||||||||||||
Net increase (decrease) | 9,235 | (1,177,670 | ) | (13,143 | ) | (52,877 | ) | |||||||||||||||||||||||||||||||
Beginning shares outstanding | 93,639 | 1,271,309 | 111,192 | 164,069 | ||||||||||||||||||||||||||||||||||
Ending shares outstanding | 102,874 | 93,639 | 98,049 | 111,192 | ||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||
Shares sold | 84,237 | 148,506 | ||||||||||||||||||||||||||||||||||||
Dividends and distribution reinvested | — | 3,151 | ||||||||||||||||||||||||||||||||||||
Shares repurchased | (46,163 | ) | (153,544 | ) | ||||||||||||||||||||||||||||||||||
Net increase (decrease) | 38,074 | (1,887 | ) | |||||||||||||||||||||||||||||||||||
Beginning shares outstanding | 538,190 | 540,077 | ||||||||||||||||||||||||||||||||||||
Ending shares outstanding | 576,264 | 538,190 | ||||||||||||||||||||||||||||||||||||
Advisor Class | ||||||||||||||||||||||||||||||||||||||
Shares sold | 188,211 | 169,158 | 14,786 | 198,000 | 4,884,017 | 859,736 | 6,338,007 | 3,789,797 | ||||||||||||||||||||||||||||||
Dividends and distribution reinvested | — | 601 | — | — | 23,453 | 10,497 | 123,110 | 280,917 | ||||||||||||||||||||||||||||||
Shares repurchased | (38,626 | ) | (7,729 | ) | — | — | (1,236,520 | ) | (254,264 | ) | (1,383,950 | ) | (6,151,943 | ) | ||||||||||||||||||||||||
Net increase (decrease) | 149,585 | 162,030 | 14,786 | 198,000 | 3,670,950 | 615,969 | 5,077,167 | (2,081,229 | ) | |||||||||||||||||||||||||||||
Beginning shares outstanding | 178,493 | 16,463 | 198,000 | — | 916,898 | 300,929 | 6,503,996 | 8,585,225 | ||||||||||||||||||||||||||||||
Ending shares outstanding | 328,078 | 178,493 | 212,786 | 198,000 | 4,587,848 | 916,898 | 11,581,163 | 6,503,996 |
C-14
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
PL Strategic Income Fund | PL Floating Rate Income Fund | PL Limited Duration High Income Fund (2) | PL High Income Fund | |||||||||||||||||||||||||||||||||||
Six-Month Period Ended 9/30/2014 | Year Ended 3/31/2014 | Six-Month Period Ended 9/30/2014 | Year Ended 3/31/2014 | Six-Month Period Ended 9/30/2014 | Period Ended 3/31/2014 | Six-Month Period Ended 9/30/2014 | Year Ended 3/31/2014 | |||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||
Shares sold | 2,306,130 | 2,697,775 | 5,612,779 | 31,588,833 | 302,331 | 930,896 | 305,526 | 379,146 | ||||||||||||||||||||||||||||||
Dividends and distribution reinvested | 75,857 | 172,744 | 597,991 | 933,803 | 20,670 | 11,050 | 16,522 | 28,309 | ||||||||||||||||||||||||||||||
Shares repurchased | (1,327,296 | ) | (1,353,615 | ) | (14,437,442 | ) | (8,726,398 | ) | (123,926 | ) | (92,880 | ) | (100,699 | ) | (146,646 | ) | ||||||||||||||||||||||
Net increase (decrease) | 1,054,691 | 1,516,904 | (8,226,672 | ) | 23,796,238 | 199,075 | 849,066 | 221,349 | 260,809 | |||||||||||||||||||||||||||||
Beginning shares outstanding | 3,383,173 | 1,866,269 | 35,750,226 | 11,953,988 | 849,066 | — | 574,086 | 313,277 | ||||||||||||||||||||||||||||||
Ending shares outstanding | 4,437,864 | 3,383,173 | 27,523,554 | 35,750,226 | 1,048,141 | 849,066 | 795,435 | 574,086 | ||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||
Shares sold | 1,478,782 | 1,559,053 | 3,782,767 | 16,574,203 | 207,946 | 243,306 | 108,818 | 311,844 | ||||||||||||||||||||||||||||||
Dividends and distribution reinvested | 41,224 | 81,611 | 319,584 | 390,478 | 6,370 | 2,026 | 10,112 | 18,049 | ||||||||||||||||||||||||||||||
Shares repurchased | (192,173 | ) | (252,338 | ) | (3,383,139 | ) | (2,579,027 | ) | (34,350 | ) | (5,919 | ) | (51,516 | ) | (59,549 | ) | ||||||||||||||||||||||
Net increase | 1,327,833 | 1,388,326 | 719,212 | 14,385,654 | 179,966 | 239,413 | 67,414 | 270,344 | ||||||||||||||||||||||||||||||
Beginning shares outstanding | 2,096,562 | 708,236 | 20,420,616 | 6,034,962 | 239,413 | — | 467,861 | 197,517 | ||||||||||||||||||||||||||||||
Ending shares outstanding | 3,424,395 | 2,096,562 | 21,139,828 | 20,420,616 | 419,379 | 239,413 | 535,275 | 467,861 | ||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||
Shares sold | 22,891 | 95,502 | 1,497,336 | 8,310,603 | 707 | 2,118,229 | 356 | 2,602 | ||||||||||||||||||||||||||||||
Dividends and distribution reinvested | 3,223 | 19,010 | 209,936 | 163,281 | 51,985 | 57,291 | 21,326 | 57,640 | ||||||||||||||||||||||||||||||
Shares repurchased | (2,748 | ) | (1,940,671 | ) | (736,379 | ) | (320,615 | ) | (295 | ) | — | (473 | ) | (2,538 | ) | |||||||||||||||||||||||
Net increase (decrease) | 23,366 | (1,826,159 | ) | 970,893 | 8,153,269 | 52,397 | 2,175,520 | 21,209 | 57,704 | |||||||||||||||||||||||||||||
Beginning shares outstanding | 151,225 | 1,977,384 | 9,177,449 | 1,024,180 | 2,175,520 | — | 852,404 | 794,700 | ||||||||||||||||||||||||||||||
Ending shares outstanding | 174,591 | 151,225 | 10,148,342 | 9,177,449 | 2,227,917 | 2,175,520 | 873,613 | 852,404 | ||||||||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||||||||
Shares sold | 18,060 | 24,043 | ||||||||||||||||||||||||||||||||||||
Dividends and distribution reinvested | 616 | 277 | ||||||||||||||||||||||||||||||||||||
Shares repurchased | (864 | ) | (2,007 | ) | ||||||||||||||||||||||||||||||||||
Net increase | 17,812 | 22,313 | ||||||||||||||||||||||||||||||||||||
Beginning shares outstanding | 23,676 | 1,363 | ||||||||||||||||||||||||||||||||||||
Ending shares outstanding | 41,488 | 23,676 | ||||||||||||||||||||||||||||||||||||
Advisor Class | ||||||||||||||||||||||||||||||||||||||
Shares sold | 4,521,077 | 776,150 | 13,224,611 | 35,812,859 | 47,311 | 200,332 | 723,484 | 277,344 | ||||||||||||||||||||||||||||||
Dividends and distribution reinvested | 43,440 | 23,008 | 682,515 | 620,036 | 4,483 | 2,926 | 8,469 | 2,914 | ||||||||||||||||||||||||||||||
Shares repurchased | (816,714 | ) | (109,035 | ) | (11,656,948 | ) | (4,916,250 | ) | (29,182 | ) | (21,064 | ) | (613,210 | ) | (32,328 | ) | ||||||||||||||||||||||
Net increase | 3,747,803 | 690,123 | 2,250,178 | 31,516,645 | 22,612 | 182,194 | 118,743 | 247,930 | ||||||||||||||||||||||||||||||
Beginning shares outstanding | 830,274 | 140,151 | 34,916,294 | 3,399,649 | 182,194 | — | 272,914 | 24,984 | ||||||||||||||||||||||||||||||
Ending shares outstanding | 4,578,077 | 830,274 | 37,166,472 | 34,916,294 | 204,806 | 182,194 | 391,657 | 272,914 |
(1) | PL Diversified Alternatives Fund commenced operations on December 31, 2013. |
(2) | PL Limited Duration High Income Fund commenced operations on July 31, 2013. |
C-15
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, 2014 to September 30, 2014.
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 Notes 5 and 6B in Notes to Financial Statements). The “Ending Account Value at 09/30/14” 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 04/01/14-09/30/14” 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, 2014 to September 30, 2014.
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 04/01/14-09/30/14.”
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 Notes 5 and 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 04/01/14 | Ending Account Value at 09/30/14 | Annualized Expense Ratio | Expenses Paid During the Period 04/01/14 - 09/30/14 (1) | |||||||||||||
PL Portfolio Optimization Conservative Fund (2) | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class A | $1,000.00 | $1,015.90 | 0.60% | $3.03 | ||||||||||||
Class B | 1,000.00 | 1,012.60 | 1.35% | 6.81 | ||||||||||||
Class C | 1,000.00 | 1,013.50 | 1.35% | 6.81 | ||||||||||||
Class R | 1,000.00 | 1,015.10 | 0.85% | 4.29 | ||||||||||||
Advisor Class | 1,000.00 | 1,017.70 | 0.35% | 1.77 | ||||||||||||
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 | ||||||||||||
Advisor Class | 1,000.00 | 1,023.31 | 0.35% | 1.78 | ||||||||||||
PL Portfolio Optimization Moderate-Conservative Fund (2) | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class A | $1,000.00 | $1,020.80 | 0.60% | $3.04 | ||||||||||||
Class B | 1,000.00 | 1,016.20 | 1.35% | 6.82 | ||||||||||||
Class C | 1,000.00 | 1,017.00 | 1.35% | 6.83 | ||||||||||||
Class R | 1,000.00 | 1,019.30 | 0.85% | 4.30 | ||||||||||||
Advisor Class | 1,000.00 | 1,021.60 | 0.35% | 1.77 | ||||||||||||
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 | ||||||||||||
Advisor Class | 1,000.00 | 1,023.31 | 0.35% | 1.78 | ||||||||||||
PL Portfolio Optimization Moderate Fund (2) | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class A | $1,000.00 | $1,020.80 | 0.60% | $3.04 | ||||||||||||
Class B | 1,000.00 | 1,017.30 | 1.35% | 6.83 | ||||||||||||
Class C | 1,000.00 | 1,017.30 | 1.35% | 6.83 | ||||||||||||
Class R | 1,000.00 | 1,019.30 | 0.85% | 4.30 | ||||||||||||
Advisor Class | 1,000.00 | 1,022.20 | 0.35% | 1.77 | ||||||||||||
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 | ||||||||||||
Advisor Class | 1,000.00 | 1,023.31 | 0.35% | 1.78 |
See explanation of references on page D-2
D-1
PACIFIC LIFE FUNDS
DISCLOSURE OF FUND EXPENSES (Continued)
(Unaudited)
Beginning Account Value at 04/01/14 | Ending Account Value at 09/30/14 | Annualized Expense Ratio | Expenses Paid During the Period 04/01/14 - 09/30/14 (1) | |||||||||||||
PL Portfolio Optimization Moderate-Aggressive Fund (2) | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class A | $1,000.00 | $1,020.40 | 0.60% | $3.04 | ||||||||||||
Class B | 1,000.00 | 1,016.40 | 1.35% | 6.82 | ||||||||||||
Class C | 1,000.00 | 1,016.50 | 1.35% | 6.82 | ||||||||||||
Class R | 1,000.00 | 1,019.00 | 0.85% | 4.30 | ||||||||||||
Advisor Class | 1,000.00 | 1,021.00 | 0.35% | 1.77 | ||||||||||||
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 | ||||||||||||
Advisor Class | 1,000.00 | 1,023.31 | 0.35% | 1.78 | ||||||||||||
PL Portfolio Optimization Aggressive Fund (2) | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class A | $1,000.00 | $1,016.40 | 0.60% | $3.03 | ||||||||||||
Class B | 1,000.00 | 1,013.40 | 1.35% | 6.81 | ||||||||||||
Class C | 1,000.00 | 1,013.40 | 1.35% | 6.81 | ||||||||||||
Class R | 1,000.00 | 1,015.20 | 0.85% | 4.29 | ||||||||||||
Advisor Class | 1,000.00 | 1,018.40 | 0.35% | 1.77 | ||||||||||||
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 | ||||||||||||
Advisor Class | 1,000.00 | 1,023.31 | 0.35% | 1.78 | ||||||||||||
PL Diversified Alternatives Fund (2) | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class A | $1,000.00 | $1,031.00 | 0.85% | $4.33 | ||||||||||||
Class C | 1,000.00 | 1,027.10 | 1.60% | 8.13 | ||||||||||||
Advisor Class | 1,000.00 | 1,033.00 | 0.60% | 3.06 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class A | $1,000.00 | $1,020.81 | 0.85% | $4.31 | ||||||||||||
Class C | 1,000.00 | 1,017.05 | 1.60% | 8.09 | ||||||||||||
Advisor Class | 1,000.00 | 1,022.06 | 0.60% | 3.04 | ||||||||||||
PL Short Duration Income Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class A | $1,000.00 | $1,003.30 | 0.85% | $4.27 | ||||||||||||
Class C | 1,000.00 | 999.80 | 1.60% | 8.02 | ||||||||||||
Class I | 1,000.00 | 1,004.70 | 0.59% | 2.97 | ||||||||||||
Advisor Class | 1,000.00 | 1,004.70 | 0.60% | 3.02 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class A | $1,000.00 | $1,020.81 | 0.85% | $4.31 | ||||||||||||
Class C | 1,000.00 | 1,017.05 | 1.60% | 8.09 | ||||||||||||
Class I | 1,000.00 | 1,022.11 | 0.59% | 2.99 | ||||||||||||
Advisor Class | 1,000.00 | 1,022.06 | 0.60% | 3.04 | ||||||||||||
PL Income Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class A | $1,000.00 | $1,018.00 | 0.92% | $4.65 | ||||||||||||
Class C | 1,000.00 | 1,014.30 | 1.67% | 8.43 | ||||||||||||
Class I | 1,000.00 | 1,019.30 | 0.65% | 3.29 | ||||||||||||
Advisor Class | 1,000.00 | 1,020.20 | 0.67% | 3.39 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class A | $1,000.00 | $1,020.46 | 0.92% | $4.66 | ||||||||||||
Class C | 1,000.00 | 1,016.70 | 1.67% | 8.44 | ||||||||||||
Class I | 1,000.00 | 1,021.81 | 0.65% | 3.29 | ||||||||||||
Advisor Class | 1,000.00 | 1,021.71 | 0.67% | 3.40 |
Beginning Account Value at 04/01/14 | Ending Account Value at 09/30/14 | Annualized Expense Ratio | Expenses Paid During the Period 04/01/14 - 09/30/14 (1) | |||||||||||||
PL Strategic Income Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class A | $1,000.00 | $1,005.30 | 1.05% | $5.28 | ||||||||||||
Class C | 1,000.00 | 1,000.90 | 1.80% | 9.03 | ||||||||||||
Class I | 1,000.00 | 1,005.70 | 0.78% | 3.92 | ||||||||||||
Advisor Class | 1,000.00 | 1,006.60 | 0.80% | 4.02 | ||||||||||||
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 | 1,021.16 | 0.78% | 3.95 | ||||||||||||
Advisor Class | 1,000.00 | 1,021.06 | 0.80% | 4.05 | ||||||||||||
PL Floating Rate Income Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class A | $1,000.00 | $1,004.60 | 1.05% | $5.28 | ||||||||||||
Class C | 1,000.00 | 1,000.00 | 1.80% | 9.02 | ||||||||||||
Class I | 1,000.00 | 1,005.90 | 0.80% | 4.02 | ||||||||||||
Class P | 1,000.00 | 1,005.90 | 0.80% | 4.02 | ||||||||||||
Advisor Class | 1,000.00 | 1,005.90 | 0.80% | 4.02 | ||||||||||||
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 | ||||||||||||
Class P | 1,000.00 | 1,021.06 | 0.80% | 4.05 | ||||||||||||
Advisor Class | 1,000.00 | 1,021.06 | 0.80% | 4.05 | ||||||||||||
PL Limited Duration High Income Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class A | $1,000.00 | $997.50 | 1.08% | $5.41 | ||||||||||||
Class C | 1,000.00 | 994.10 | 1.83% | 9.15 | ||||||||||||
Class I | 1,000.00 | 999.80 | 0.81% | 4.06 | ||||||||||||
Advisor Class | 1,000.00 | 998.80 | 0.83% | 4.16 | ||||||||||||
Hypothetical |
| |||||||||||||||
Class A | $1,000.00 | $1,019.65 | 1.08% | $5.47 | ||||||||||||
Class C | 1,000.00 | 1,015.89 | 1.83% | 9.25 | ||||||||||||
Class I | 1,000.00 | 1,021.01 | 0.81% | 4.10 | ||||||||||||
Advisor Class | 1,000.00 | 1,020.91 | 0.83% | 4.20 | ||||||||||||
PL High Income Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class A | $1,000.00 | $993.40 | 1.05% | $5.25 | ||||||||||||
Class C | 1,000.00 | 989.70 | 1.80% | 8.98 | ||||||||||||
Class I | 1,000.00 | 994.70 | 0.78% | 3.90 | ||||||||||||
Advisor Class | 1,000.00 | 994.60 | 0.80% | 4.00 | ||||||||||||
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 | 1,021.16 | 0.78% | 3.95 | ||||||||||||
Advisor Class | 1,000.00 | 1,021.06 | 0.80% | 4.05 |
(1) | Expenses paid during the period are equal to the fund’s annualized expense ratio (shown in table above), multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 365 days. |
(2) | The annualized expense ratios for the Portfolio Optimization Funds and PL Diversified Alternatives Fund do not include fees and expenses of the PL Underlying Funds and Class P shares of the PL Floating Rate Income Fund (applicable to the PL Diversified Alternatives Fund only) (see Note 1 in Notes to Financial Statements) in which the Portfolio Optimization Funds and PL Diversified Alternatives Fund invest. |
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 regulations and is available after filing (i) on the SEC’s Website at http://www.sec.gov; (ii) for review and copying at the SEC’s Public Reference Room in Washington, D.C. (information on the operations of the Public Reference Room may be obtained by calling the SEC at 1-800-SEC-0330); and (iii) on the Trust’s Webpage at http://www.pacificlife.com/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 the Trust’s fund managers voted proxies relating to fund securities during the most recent twelve-month period ended June 30. Such information is available after filing on the Trust’s’ Website and on the SEC’s Website noted below.
Information Relating to Investments Held by the Trust
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 http://www.pacificlife.com/pacificlifefunds.htm |
• | On the SEC’s Website at http://www.sec.gov |
• | Upon request by calling, without charge, 1-800-722-2333, 7 a.m. through 5 p.m. Pacific Time |
D-3
PL Underlying Funds
Semi-Annual Report
As of September 30, 2014
PACIFIC LIFE FUNDS
SEMI-ANNUAL REPORT
AS OF SEPTEMBER 30, 2014
A-1 | ||
Financial Statements: | ||
B-1 | ||
B-5 | ||
B-9 | ||
B-13 | ||
B-14 | ||
C-1 | ||
D-1 | ||
D-3 | ||
D-8 |
PACIFIC LIFE FUNDS
PL FLOATING RATE LOAN FUND
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
SENIOR LOAN NOTES - 96.5% |
| |||||||
Consumer Discretionary - 28.6% | ||||||||
99¢ Only Stores Tranche B-2 | $994,865 | $989,061 | ||||||
Acosta Holdco Inc | 475,000 | 476,181 | ||||||
Affinia Group Inc Tranche B-2 | 519,356 | 520,005 | ||||||
Amaya Holdings BV Term B | 375,000 | 370,781 | ||||||
AMC Entertainment Inc | 246,249 | 243,607 | ||||||
Answers Corp (1st Lien) | 96,250 | 97,092 | ||||||
Ascend Learning LLC | 173,688 | 174,448 | ||||||
ASP HHI Acquisition Co Inc | 1,061,377 | 1,062,373 | ||||||
Asurion LLC | 125,000 | 126,875 | ||||||
Tranche B-1 | 1,038,385 | 1,034,599 | ||||||
Aufinco Property Ltd Term B | 49,375 | 48,727 | ||||||
AVSC Holding Corp (1st Lien) | 49,750 | 49,424 | ||||||
Bally Technologies Term B | 130,511 | 130,185 | ||||||
Bass Pro Group LLC | 296,939 | 293,722 | ||||||
Blue Buffalo Co Ltd Term B-3 | 563,568 | 560,046 | ||||||
Boyd Gaming Corp Term B | 533,529 | 526,526 | ||||||
Burger King Corp | 925,000 | 919,090 | ||||||
Tranche B | 220,500 | 220,252 | ||||||
Burlington Coat Factory Warehouse Corp Term B-3 | 75,000 | 74,500 | ||||||
Caesars Entertainment Operating Co Inc Term B-6 | 216,500 | 197,730 | ||||||
Campaign Monitor Finance Property Ltd | 99,500 | 98,629 | ||||||
CEC Entertainment Inc Term B | 99,500 | 96,764 | ||||||
Cequel Communications LLC Term B | 520,355 | 512,159 | ||||||
Charter Communications Operating LLC | 172,813 | 167,928 | ||||||
Term F | 235,096 | 228,451 | ||||||
Chrysler Group LLC | 613,657 | 609,918 | ||||||
Tranche B | 273,625 | 269,863 | ||||||
CityCenter Holdings LLC | 340,926 | 337,858 | ||||||
Clear Channel Communications Inc | 3,101 | 3,078 | ||||||
Tranche D | 367,529 | 351,564 | ||||||
Tranche E | 118,204 | 115,839 |
Principal Amount | Value | |||||||
Crown Media Holdings Inc Term B | $347,782 | $346,475 | ||||||
Cumulus Media Holdings Inc | 554,804 | 546,482 | ||||||
David’s Bridal Inc | 71,658 | 69,733 | ||||||
Education Management LLC | 493,454 | 284,559 | ||||||
Tranche C-3 | 299,064 | 171,962 | ||||||
Entravision Communications Corp Tranche B | 96,583 | 95,094 | ||||||
Equinox Holdings Inc (1st Lien) | 321,060 | 318,051 | ||||||
Extreme Reach Inc (1st Lien) | 97,000 | 98,091 | ||||||
Federal-Mogul Corp Tranche C | 525,000 | 521,250 | ||||||
Fender Musical Instruments Corp | 44,375 | 44,310 | ||||||
Flint Group | 150,000 | 149,062 | ||||||
General Nutrition Centers Inc Tranche B | 1,119,606 | 1,101,763 | ||||||
Getty Images Inc | 564,938 | 518,189 | ||||||
Go Daddy Operating Co LLC | 561,823 | 554,976 | ||||||
Harbor Freight Tools USA Inc | 148,500 | 148,574 | ||||||
Hilton Worldwide | 679,934 | 670,463 | ||||||
Hudson’s Bay Co Term B (1st Lien) | 439,375 | 440,290 | ||||||
Information Resources Inc | 99,000 | 99,082 | ||||||
Interactive Data Corp | 224,438 | 223,456 | ||||||
Ion Media Networks Inc | 198,500 | 198,932 | ||||||
J Crew Group Inc | 399,000 | 379,674 | ||||||
Jo-Ann Stores Inc Term B | 961,798 | 926,932 | ||||||
Kasima LLC | 121,324 | 120,186 | ||||||
La Quinta Intermediate Holdings LLC | 138,581 | 136,953 | ||||||
Landry’s Inc | 427,016 | 424,214 | ||||||
Laureate Education Inc | 1,093,220 | 1,052,225 | ||||||
MCC Iowa LLC Tranche H | 98,750 | 96,405 | ||||||
McGraw-Hill Global Education Holdings LLC | 84,292 | 84,582 | ||||||
Mediacom Broadband Term J | 124,688 | 122,777 | ||||||
Mediacom LLC Tranche G | 75,000 | 73,734 | ||||||
Media General Inc Term B | 136,046 | 134,941 | ||||||
MH Sub I LLC (1st Lien) | 112,463 | 112,006 | ||||||
MGM Resorts International Term B | 294,750 | 290,145 | ||||||
Michaels Stores Inc | 125,000 | 123,656 | ||||||
Term B | 320,938 | 315,121 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-1
PACIFIC LIFE FUNDS
PL FLOATING RATE LOAN FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
Numericable US LLC | $139,154 | $138,197 | ||||||
Tranche B-2 | 160,846 | 159,740 | ||||||
OSI Restaurant Partners LLC | 211,587 | 211,084 | ||||||
Party City Holdings Inc | 393,584 | 387,599 | ||||||
Petco Animal Supplies Inc | 481,250 | 477,941 | ||||||
Pilot Travel Centers LLC Tranche B | 404,575 | 405,081 | ||||||
4.250% due 08/07/19 § | 147,000 | 147,061 | ||||||
Pinnacle Entertainment Inc Tranche B-2 | 94,318 | 93,434 | ||||||
Proquest LLC | 100,000 | 100,031 | ||||||
Renaissance Learning Inc (1st Lien) | 74,625 | 73,272 | ||||||
Rentpath Inc Term B | 123,438 | 124,129 | ||||||
Sabre GLBL Inc Term B | 147,375 | 145,570 | ||||||
Scientific Games International Inc | 125,000 | 122,578 | ||||||
4.250% due 10/18/20 § | 471,438 | 470,185 | ||||||
Seaworld Parks & Entertainment Inc Term B-2 | 567,678 | 537,875 | ||||||
Serta Simons Holdings LLC Term B | 378,413 | 376,153 | ||||||
Six Flags Theme Parks Inc | 498,837 | 498,213 | ||||||
Spin Holdco Inc (1st Lien) | 148,877 | 146,760 | ||||||
Springer SBM II GmbH Term B-3 | 148,503 | 146,275 | ||||||
SRAM LLC Term B | 202,410 | 199,078 | ||||||
Standard Aero Ltd Tranche B-2 | 38,189 | 38,323 | ||||||
SurveyMonkey.com LLC | 241,536 | 242,816 | ||||||
Tempur-Pedic International Inc Term B | 153,611 | 152,075 | ||||||
The Brickman Group Ltd LLC (1st Lien) | 99,251 | 97,417 | ||||||
The Goodyear Tire & Rubber Co (2nd Lien) | 925,000 | 926,590 | ||||||
The Men’s Wearhouse Inc Tranche B | 200,000 | 199,373 | ||||||
The Neiman Marcus Group Inc | 545,882 | 537,352 | ||||||
The ServiceMaster Co LLC | 325,000 | 320,682 | ||||||
TI Group Automotive Systems LLC | 399,000 | 393,514 | ||||||
Tower Automotive Holdings USA LLC | 546,878 | 541,751 | ||||||
Town Sports International LLC | 149,250 | 129,848 | ||||||
Toys ‘R’ US Property Co I LLC | 496,250 | 478,881 | ||||||
Travelport Finance SARL (Luxembourg) | 175,000 | 174,918 | ||||||
TWCC Holding Corp | 712,010 | 702,109 | ||||||
(2nd Lien) | 100,000 | 98,417 | ||||||
Univision Communications Inc (1st Lien) | 866,258 | 851,009 |
Principal Amount | Value | |||||||
Veyance Technologies Inc | $276,833 | $276,141 | ||||||
Virgin Media Investment Holdings Ltd Facility B | 725,000 | 706,810 | ||||||
Visteon Corp | 149,625 | 147,568 | ||||||
VWR Funding Inc | 596,500 | 588,795 | ||||||
Weight Watchers International Inc Tranche B-2 | 763,375 | 588,753 | ||||||
Wendy’s International Inc Term B | 675,340 | 672,687 | ||||||
WMG Acquisition Corp Tranche B | 123,750 | 119,651 | ||||||
WNA Holdings Inc | 465,970 | 461,895 | ||||||
Zuffa LLC | 497,470 | 491,667 | ||||||
|
| |||||||
36,800,918 | ||||||||
|
| |||||||
Consumer Staples - 8.8% | ||||||||
AdvancePierre Foods Inc (1st Lien) | 446,614 | 447,060 | ||||||
Albertson’s LLC | 124,002 | 123,759 | ||||||
Term B-3 | 325,000 | 322,969 | ||||||
Term B-4 | 125,000 | 124,518 | ||||||
Arysta LifeScience SPC LLC (1st Lien) | 320,937 | 320,603 | ||||||
Clearwater Seafoods LP Term B | 445,500 | 446,243 | ||||||
CSM Bakery Supplies LLC (1st Lien) | 123,750 | 122,551 | ||||||
Del Monte Foods Co (1st Lien) | 250,000 | 234,167 | ||||||
Del Monte Foods Inc | 309,496 | 299,244 | ||||||
(1st Lien) | 99,500 | 93,198 | ||||||
Diamond Foods Inc Term B | 497,500 | 492,525 | ||||||
Dole Food Co Inc Tranche B | 856,771 | 852,130 | ||||||
High Liner Foods Inc | 99,500 | 99,313 | ||||||
HJ Heinz Co Term B-2 | 1,283,750 | 1,270,271 | ||||||
JBS USA LLC | 861,507 | 857,716 | ||||||
3.750% due 09/18/20 § | 198,000 | 196,020 | ||||||
NBTY Inc Term B-2 | 325,000 | 319,272 | ||||||
New Albertson’s Inc Term B | 550,000 | 542,369 | ||||||
Oak Leaf | 300,000 | 293,250 | ||||||
Pinnacle Foods Finance LLC Tranche G | 410,780 | 402,924 | ||||||
Revlon Consumer Products Corp | 148,875 | 147,177 | ||||||
Reynolds Group Holdings | 982,575 | 973,627 | ||||||
Rite Aid Corp Tranche 7 | 246,884 | 244,056 | ||||||
Spectrum Brands Inc Tranche C | 123,750 | 122,884 | ||||||
Supervalu Inc | 711,324 | 700,111 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-2
PACIFIC LIFE FUNDS
PL FLOATING RATE LOAN FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
The Sun Products Corp Tranche B | $268,861 | $254,522 | ||||||
US Foods Inc | 1,061,563 | 1,058,577 | ||||||
|
| |||||||
11,361,056 | ||||||||
|
| |||||||
Energy - 3.7% | ||||||||
Alpha Natural Resources Inc Term B | 73,875 | 66,488 | ||||||
Arch Coal Inc | 391,194 | 358,627 | ||||||
Bronco Midstream Funding LLC | 209,624 | 209,886 | ||||||
Chesapeake Finance 2 Ltd Tranche B | 49,750 | 49,284 | ||||||
Citgo Petroleum Corp Term B | 125,000 | 125,365 | ||||||
Drillships Ocean Ventures Inc | 150,000 | 145,031 | ||||||
Energy Transfer Equity LP | 225,000 | 220,125 | ||||||
Fieldwood Energy LLC | 123,813 | 122,600 | ||||||
MEG Energy Corp | 761,306 | 757,907 | ||||||
Obsidian Natural Gas Trust | 318,374 | 318,772 | ||||||
Ruby Western Pipeline Holdings LLC | 43,137 | 42,840 | ||||||
Samson Investment Co Tranche 1 (2nd Lien) | 100,000 | 97,388 | ||||||
Seadrill Operating LP | 496,561 | 473,152 | ||||||
Sheridan Investment Partners I LLC Tranche B-2 | 241,667 | 238,193 | ||||||
Sheridan Investment Partners II LP | ||||||||
4.250% due 12/11/20 § | 418,346 | 412,333 | ||||||
4.250% due 12/16/20 § | 21,704 | 21,392 | ||||||
Term A2 | 58,195 | 57,358 | ||||||
Sheridan Production Partners I-A LP Tranche B-2 | 32,023 | 31,563 | ||||||
Sheridan Production Partners I-M LP Tranche B-2 | 19,560 | 19,279 | ||||||
Tallgrass Operations LLC | 573,909 | 572,833 | ||||||
Tenaska Inc | 200,000 | 200,000 | ||||||
Tervita Corp | 197,000 | 196,490 | ||||||
|
| |||||||
4,736,906 | ||||||||
|
| |||||||
Financials - 7.4% | ||||||||
Alliant Holdings I LLC | 242,945 | 242,589 | ||||||
Altisource Solutions SARL (Luxembourg) Term B | 322,565 | 307,243 | ||||||
American Capital Ltd Term B | 111,375 | 110,818 | ||||||
Amwins Group (1st Lien) | 123,000 | 123,000 | ||||||
Armor Holding II LLC (1st Lien) | 96,649 | 96,186 | ||||||
Citco Funding LLC | 532,882 | 528,220 | ||||||
Clipper Acquisitions Corp Term B | 689,034 | 678,905 | ||||||
CNO Financial Group Inc Tranche B-2 | 115,275 | 114,445 | ||||||
Corporate Capital Trust Inc Term B | 124,375 | 124,711 |
Principal Amount | Value | |||||||
Crown Castle Operating Co Tranche B-2 | $222,567 | $219,938 | ||||||
Cunningham Lindsey US Inc (1st Lien) | 294,750 | 290,329 | ||||||
First Data Corp | ||||||||
Term B (2nd Lien) | 200,000 | 196,375 | ||||||
Term C-1 | 623,620 | 612,577 | ||||||
Grosvenor Capital Management Holdings LP | 148,875 | 147,200 | ||||||
Guggenheim Partners Investment Management | 173,811 | 173,340 | ||||||
Harbourvest Partners LP | 340,493 | 335,385 | ||||||
Home Loan Servicing Solutions Ltd | 148,125 | 145,811 | ||||||
HUB International Ltd | 297,008 | 291,532 | ||||||
ION Trading Technologies SARL (1st Lien) | 174,563 | 172,708 | ||||||
LPL Holdings Inc Tranche B (1st Lien) | 391,045 | 387,135 | ||||||
MCS AMS Sub-Holdings LLC | 72,188 | 69,300 | ||||||
Nuveen Investments Inc Tranche B (1st Lien) | 883,260 | 881,972 | ||||||
Ocwen Loan Servicing LLC | 646,484 | 636,706 | ||||||
PGX Holding Inc | 75,000 | 74,719 | ||||||
RCS Capital Corp (1st Lien) | 148,125 | 149,421 | ||||||
Realogy Corp Term B | 992,500 | 978,853 | ||||||
RHP Hotel Properties LP Tranche B | 99,750 | 99,625 | ||||||
Shield Finance Co SARL Term B | 99,500 | 99,583 | ||||||
Starwood Property Trust Inc | 98,995 | 97,696 | ||||||
TransUnion LLC | 547,250 | 539,954 | ||||||
USI Inc | 295,083 | 290,287 | ||||||
Walker & Dunlop Inc | 74,438 | 74,903 | ||||||
Walter Investment Management Corp Tranche B 4.750% due 12/18/20 § | 280,539 | 270,486 | ||||||
|
| |||||||
9,561,952 | ||||||||
|
| |||||||
Health Care - 14.5% | ||||||||
Akorn Inc | 250,000 | 249,685 | ||||||
Alere Inc Term B | 776,005 | 771,559 | ||||||
Alliance HealthCare Services Inc | 98,750 | 98,503 | ||||||
Amneal Pharmaceuticals LLC | 200,000 | 200,125 | ||||||
Term B | 74,438 | 74,484 | ||||||
Ardent Medical Services Inc (1st Lien) | 640,619 | 643,622 | ||||||
Aveta Inc | 51,376 | 51,119 | ||||||
Biomet Inc Term B-2 | 1,179,974 | 1,173,890 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-3
PACIFIC LIFE FUNDS
PL FLOATING RATE LOAN FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
CHS/Community Health Systems Inc | $1,477,807 | $1,475,314 | ||||||
Term E | 172,775 | 172,139 | ||||||
CPI Buyer LLC (1st Lien) | 150,000 | 148,500 | ||||||
DaVita HealthCare Partners Inc Tranche B | 423,938 | 419,864 | ||||||
DJO Finance LLC Tranche B | 355,192 | 353,195 | ||||||
Envision Healthcare Corp | 450,174 | 446,573 | ||||||
Gentiva Health Services Inc Term B | 672,431 | 674,533 | ||||||
Grifols Worldwide Operations Ltd Tranche B | 621,875 | 611,856 | ||||||
HCA Inc Tranche B-4 | 650,355 | 643,784 | ||||||
Ikaria (1st Lien) | 94,132 | 94,000 | ||||||
IMS Health Inc Term B | 552,574 | 541,983 | ||||||
InVentiv Health Inc Term B-4 | 263,957 | 262,857 | ||||||
JLL/Delta Dutch Newco BV | 498,750 | 489,666 | ||||||
Kindred Healthcare Inc | 199,500 | 196,383 | ||||||
Kinetic Concepts Inc Term E-1 | 760,331 | 752,094 | ||||||
Mallinckrodt International Finance SA | 199,000 | 196,295 | ||||||
Term B-1 | 150,000 | 148,000 | ||||||
MedAssets Inc Term B | 44,938 | 44,853 | ||||||
Millennium Laboratories LLC Tranche B | 773,063 | 773,056 | ||||||
MMM Holdings Inc | 70,667 | 71,109 | ||||||
National Mentor Holdings Inc Tranche B | ||||||||
4.750% due 01/31/21 § | 49,750 | 49,574 | ||||||
Onex Carestream Finance LP (1st Lien) | 295,535 | 295,659 | ||||||
Ortho-Clinical Diagnostics Holdings SARL (Luxembourg) | 423,938 | 419,897 | ||||||
Par Pharmaceutical Cos Inc Term B-2 | 222,540 | 218,784 | ||||||
Pharmaceutical Product Development Inc | 982,500 | 975,541 | ||||||
PRA Holdings Tranche B-1 | 148,500 | 147,502 | ||||||
Prestige Brands Inc Term B-2 | 100,000 | 100,038 | ||||||
Quintiles Transnational Corp Term B-3 | 1,399,392 | 1,381,900 | ||||||
Radnet Management Inc Tranche B | 192,563 | 191,721 | ||||||
Sage Products (1st Lien) | 180,461 | 180,085 | ||||||
Salix Pharmaceuticals Ltd | 96,250 | 96,216 | ||||||
Steward Health Care System LLC | 496,231 | 494,370 | ||||||
The Trizetto Group Inc | 472,408 | 472,998 | ||||||
Truven Health Analytics Inc | 196,013 | 192,582 |
Principal Amount | Value | |||||||
U.S. Renal Care Inc Tranche B-2 | $498,741 | $493,286 | ||||||
Valeant Pharmaceuticals International Inc | 255,838 | 253,371 | ||||||
Series D-2 Tranche B | 425,331 | 421,343 | ||||||
Series E-1 Tranche B | 497,623 | 492,469 | ||||||
|
| |||||||
18,656,377 | ||||||||
|
| |||||||
Industrials - 9.7% | ||||||||
Accudyne Industries LLC | 707,042 | 695,774 | ||||||
ADS Waste Holdings Inc Tranche B-2 | 221,062 | 216,042 | ||||||
Allflex Holdings III Inc (1st Lien) | 74,250 | 73,740 | ||||||
Allison Transmission Inc Term B-3 | 586,853 | 581,902 | ||||||
American Builders & Contractors Supply Co Inc | 622,491 | 612,531 | ||||||
Ameriforge Group Inc (1st Lien) | 172,946 | 172,946 | ||||||
Apex Tool Group LLC | 437,558 | 423,337 | ||||||
Atlantic Aviation FBO Inc | 99,000 | 98,051 | ||||||
Bombardier Recreational Products Inc (Canada) | 396,000 | 389,811 | ||||||
Ceridian Corp | ||||||||
Term B-1 | 71,116 | 70,983 | ||||||
Term B-2 | 74,181 | 73,439 | ||||||
CPG International Inc | 299,244 | 298,496 | ||||||
CSC Holdings LLC Term B | 204,774 | 198,822 | ||||||
DAE Aviation Holdings Inc Tranche B-1 | 84,240 | 84,535 | ||||||
Delos Finance SARL | 325,000 | 322,004 | ||||||
Doosan Infracore International Inc Tranche B | 149,625 | 149,999 | ||||||
EnergySolutions LLC | 124,688 | 126,324 | ||||||
Evergreen (1st Lien) | 100,000 | 98,438 | ||||||
5.750% due 04/28/21 § | 200,000 | 197,667 | ||||||
Floatel International Ltd | 149,250 | 146,638 | ||||||
Flying Fortress Inc | 354,167 | 352,174 | ||||||
Gardner Denver Inc | 198,000 | 194,399 | ||||||
Gates Global LLC | 200,000 | 196,929 | ||||||
Generac Power Systems Inc Term B | 188,167 | 185,283 | ||||||
Grede Holdings LLC | 325,000 | 324,391 | ||||||
Husky Injection Molding Systems Ltd | 373,574 | 369,185 | ||||||
IG Investments Holdings LLC | ||||||||
Tranche B (1st Lien) | 147,809 | 147,901 | ||||||
Ina Beteiligungsgesellschaft Mit Beschrankter Haftung Facility E | 125,000 | 124,040 | ||||||
John Maneely Co | 972,334 | 967,910 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-4
PACIFIC LIFE FUNDS
PL FLOATING RATE LOAN FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
KAR Auction Services Inc Tranche B-2 | $309,054 | $304,934 | ||||||
Merrill Communications LLC | 22,441 | 22,693 | ||||||
Metaldyne LLC | 706,998 | 704,494 | ||||||
Milacron LLC | 541,778 | 539,069 | ||||||
Monitronics International Inc Term B | 171,262 | 169,656 | ||||||
NN Inc | 100,000 | 100,313 | ||||||
Pelican Products Inc (1st Lien) | 186,674 | 187,452 | ||||||
Rexnord LLC Term B | 569,250 | 561,185 | ||||||
Sensata Technologies BV Term B | 118,204 | 117,697 | ||||||
Stena International | 223,875 | 220,377 | ||||||
Swift Transportation Co Inc Tranche B | 149,250 | 149,017 | ||||||
Tank Holding Corp Term 1 | 119,408 | 118,767 | ||||||
The Hertz Corp Tranche B-1 | 221,063 | 217,562 | ||||||
Transdigm Inc | 172,802 | 170,250 | ||||||
Tranche D | 249,375 | 245,857 | ||||||
U.S. Security Associates Holdings Inc Term B | 486,220 | 485,612 | ||||||
VAT Lux III SARL | 49,750 | 49,418 | ||||||
West Corp Term B-10 | 193,624 | 189,872 | ||||||
|
| |||||||
12,447,916 | ||||||||
|
| |||||||
Information Technology - 10.6% | ||||||||
Activision Blizzard Inc | 360,188 | 359,837 | ||||||
Applied Systems Inc (1st Lien) | 124,063 | 122,946 | ||||||
ARRIS Group Inc Term B | 411,979 | 406,572 | ||||||
Avago Technologies Cayman Ltd | 847,875 | 841,289 | ||||||
AVAST Software | 121,875 | 121,926 | ||||||
Blue Coat Systems Inc | 746,232 | 734,106 | ||||||
CDW Corp | 246,251 | 240,826 | ||||||
Commscope Inc Tranche 4 | 148,500 | 147,540 | ||||||
CompuCom Systems Inc | 310,061 | 300,759 | ||||||
Dell Inc Term B | 1,116,563 | 1,109,863 | ||||||
Dell International Term C | 185,000 | 182,991 | ||||||
Eagle Parent Inc Term B-2 | 446,376 | 441,800 | ||||||
EIG Investors Corp Term (1st Lien) | 295,144 | 293,853 | ||||||
Emdeon Business Services LLC Term B-2 | 565,681 | 560,024 | ||||||
Entegris Inc Tranche B | 70,736 | 69,911 |
Principal Amount | Value | |||||||
Excelitas Technologies Corp Term B | $489,750 | $490,362 | ||||||
Expert Global Solutions Inc Term B (1st Lien) | 259,779 | 260,103 | ||||||
Freescale Semiconductor Inc Tranche B-4 | 320,143 | 315,675 | ||||||
Genpact Ltd | 171,948 | 170,874 | ||||||
GXS Group Inc | 124,063 | 122,938 | ||||||
Infor (US) Inc Tranche B-5 | 1,189,095 | 1,163,678 | ||||||
Kronos Inc (1st Lien) | 295,661 | 294,407 | ||||||
Moneygram International Inc | 496,222 | 488,313 | ||||||
Novell Inc (1st Lien) | 366,421 | 367,767 | ||||||
NXP BV Tranche D | 247,500 | 243,581 | ||||||
Opal Acquisition Inc (1st Lien) | 223,313 | 223,313 | ||||||
Rocket Software Inc | 479,168 | 480,267 | ||||||
RP Crown Parent LLC (1st Lien) | 838,717 | 818,275 | ||||||
SCS Holdings I Inc | 407,291 | 412,892 | ||||||
Smart Technologies ULC Term B | 23,124 | 22,952 | ||||||
Sophia LP Term B-1 | 133,283 | 131,652 | ||||||
Spansion LLC | 122,734 | 120,945 | ||||||
SunEdison Semiconductor BV | 124,687 | 124,610 | ||||||
SunGard Data Systems Inc | 100,092 | 99,820 | ||||||
Tranche E | 610,184 | 603,983 | ||||||
Vantiv LLC Term B | 124,688 | 124,251 | ||||||
Vertafore Inc | 483,848 | 480,824 | ||||||
Wall Street Systems Delaware Inc | 166,972 | 166,068 | ||||||
|
| |||||||
13,661,793 | ||||||||
|
| |||||||
Materials - 8.0% | ||||||||
Axalta Coating Systems Dutch Holding B BV Term B | 330,407 | 324,088 | ||||||
AZ Chem US Inc (1st Lien) | 387,409 | 387,505 | ||||||
Berry Plastics Corp | 742,472 | 725,162 | ||||||
Term E | 99,500 | 97,426 | ||||||
Essar Steel Algoma Inc | 242,515 | 243,386 | ||||||
Fairmount Minerals Ltd Tranche B-2 | 247,500 | 247,593 | ||||||
FMG Resources Property Ltd | 760,073 | 745,504 | ||||||
Gemini HDPE LLC | 250,000 | 249,896 | ||||||
Huntsman International LLC | 250,000 | 248,125 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-5
PACIFIC LIFE FUNDS
PL FLOATING RATE LOAN FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
Ineos US Finance LLC Term B | $1,050,606 | $1,031,153 | ||||||
MacDermid Inc | 75,000 | 74,063 | ||||||
Tranche B (1st Lien) | 98,750 | 97,516 | ||||||
Minerals Technologies Inc | 244,567 | 244,223 | ||||||
Murray Energy Corp | 174,125 | 174,038 | ||||||
Neenah Foundry Co | 66,573 | 66,334 | ||||||
Noranda Aluminum Term B | 121,875 | 119,031 | ||||||
Novelis Inc | 962,533 | 955,073 | ||||||
Oxea SARL Tranche B-2 (1st Lien) | 74,438 | 73,228 | ||||||
PQ Corp | 147,375 | 146,033 | ||||||
Quikrete Holdings Inc (1st Lien) | 598,502 | 594,325 | ||||||
Signode Industrial Group Lux SA Term B | 176,296 | 174,644 | ||||||
Tricorbraun Inc | 479,114 | 476,120 | ||||||
Tronox Inc Term B | 1,207,656 | 1,200,780 | ||||||
Unifrax Holding Co | 490,781 | 489,657 | ||||||
Univar Inc Term B | 471,744 | 467,714 | ||||||
Walter Energy Inc Term B | 707,503 | 627,024 | ||||||
|
| |||||||
10,279,641 | ||||||||
|
| |||||||
Telecommunication Services - 3.5% | ||||||||
Intelsat Jackson Holdings SA Term B-2 | 975,000 | 961,391 | ||||||
IPC Systems Inc (1st Lien) | 149,625 | 150,373 | ||||||
SBA Finance Communications Corp | 199,500 | 195,676 | ||||||
Syniverse Holdings Inc | 239,957 | 236,357 | ||||||
Tranche B | 121,190 | 119,221 | ||||||
Telesat Canada Term B-2 | 513,247 | 506,292 | ||||||
TNS Inc (1st Lien) | 46,796 | 46,943 | ||||||
UPC Financing Partnership Facility AH | 1,000,000 | 974,625 | ||||||
Windstream Corp Tranche B-5 | 987,500 | 977,823 | ||||||
Ziggo BV | ||||||||
due 01/15/22 µ | 127,872 | 124,470 | ||||||
Facility B-1 | 120,181 | 116,983 | ||||||
Term B-2 | 76,947 | 74,898 | ||||||
|
| |||||||
4,485,052 | ||||||||
|
|
Principal Amount | Value | |||||||
Utilities - 1.7% | ||||||||
Calpine Construction Finance Co LP Term B-1 | $148,125 | $143,772 | ||||||
Calpine Corp | 1,013,250 | 1,008,747 | ||||||
Term B-2 | 96,750 | 96,369 | ||||||
Dynegy Inc Tranche B-2 | 121,538 | 120,830 | ||||||
EFS Cogen Holdings I LLC Term B | 65,893 | 65,838 | ||||||
Energy Future Intermediate Holding Co LLC | 225,000 | 224,298 | ||||||
EquiPower Resources Holdings LLC Term C (1st Lien) | 272,555 | 271,761 | ||||||
La Frontera Generation LLC | 250,000 | 247,655 | ||||||
|
| |||||||
2,179,270 | ||||||||
|
| |||||||
Total Senior Loan Notes | 124,170,881 | |||||||
|
| |||||||
Shares | ||||||||
SHORT-TERM INVESTMENT - 4.5% | ||||||||
Money Market Fund - 4.5% | ||||||||
BlackRock Liquidity Funds Treasury | 5,832,776 | 5,832,776 | ||||||
|
| |||||||
Total Short-Term Investment | 5,832,776 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 101.0% | 130,003,657 | |||||||
OTHER ASSETS & LIABILITIES, NET - (1.0%) | (1,296,264 | ) | ||||||
|
| |||||||
NET ASSETS - 100.0% | $128,707,393 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Consumer Discretionary | 28.6% | |||
Health Care | 14.5% | |||
Information Technology | 10.6% | |||
Industrials | 9.7% | |||
Consumer Staples | 8.8% | |||
Materials | 8.0% | |||
Financials | 7.4% | |||
Short-Term Investment | 4.5% | |||
Energy | 3.7% | |||
Telecommunication Services | 3.5% | |||
Others (each less than 3.0%) | 1.7% | |||
|
| |||
101.0% | ||||
Other Assets & Liabilities, Net | (1.0% | ) | ||
|
| |||
100.0% | ||||
|
|
(b) | An investment with a value of $243,386 or 0.2% of the fund’s net assets was in default as of September 30, 2014. |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-6
PACIFIC LIFE FUNDS
PL FLOATING RATE LOAN FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
(c) | Pursuant to the terms of the following senior loan agreement, the fund had an unfunded loan commitment of $12,132 or less than 0.1% of the net assets as of September 30, 2014, which could be extended at the option of the borrower: |
Borrower | Unfunded Loan Commitment | Value | Unrealized Appreciation | |||||||||
MH Sub I LLC | $12,132 | $12,205 | $73 | |||||||||
|
|
|
|
|
|
(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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant | Level 3 Significant | |||||||||||||||
Assets | Senior Loan Notes | $124,170,881 | $— | $124,170,881 | $— | |||||||||||||
Short-Term Investment | 5,832,776 | 5,832,776 | — | — | ||||||||||||||
Unfunded Loan Commitment | 73 | — | 73 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $130,003,730 | $5,832,776 | $124,170,954 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-7
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments
September 30, 2014 (Unaudited)
Principal | Value | |||||||
CORPORATE BONDS & NOTES - 1.0% | ||||||||
Energy - 0.3% | ||||||||
California Resources Corp | $400,000 | $406,500 | ||||||
|
| |||||||
Financials - 0.4% | ||||||||
Intesa Sanpaolo SPA (Italy) | 100,000 | 102,326 | ||||||
LBG Capital No.2 PLC (United Kingdom) | GBP 190,000 | 437,384 | ||||||
|
| |||||||
539,710 | ||||||||
|
| |||||||
Industrials - 0.3% | ||||||||
International Lease Finance Corp | ||||||||
6.750% due 09/01/16 ~ | $100,000 | 108,250 | ||||||
7.125% due 09/01/18 ~ | 200,000 | 225,500 | ||||||
|
| |||||||
333,750 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes |
| 1,279,960 | ||||||
|
| |||||||
MORTGAGE-BACKED SECURITIES - 2.4% | ||||||||
Collateralized Mortgage Obligations - Commercial - 0.3% |
| |||||||
JP Morgan Chase Commercial Mortgage | 108,532 | 116,383 | ||||||
Morgan Stanley Capital I Trust | 97,299 | 106,975 | ||||||
Silenus European Loan Conduit Ltd (Ireland) | EUR 124,234 | 155,189 | ||||||
|
| |||||||
378,547 | ||||||||
|
| |||||||
Collateralized Mortgage Obligations - Residential - 2.1% |
| |||||||
Banc of America Funding Trust | $451,234 | 421,001 | ||||||
Banc of America Mortgage Trust | 104,413 | 98,153 | ||||||
Bear Stearns Adjustable Rate Mortgage Trust | ||||||||
2.164% due 08/25/35 " § | 15,181 | 15,488 | ||||||
2.528% due 03/25/35 " § | 13,142 | 13,323 | ||||||
2.580% due 03/25/35 " § | 53,005 | 53,670 | ||||||
Citigroup Mortgage Loan Trust Inc | ||||||||
2.200% due 09/25/35 " § | 24,278 | 24,483 | ||||||
2.280% due 09/25/35 " § | 20,407 | 20,553 | ||||||
Countrywide Home Loan Mortgage Pass-Through Trust | 47,469 | 46,017 | ||||||
Fannie Mae | ||||||||
0.505% due 07/25/37 " § | 167,597 | 168,180 | ||||||
0.535% due 07/25/37 " § | 155,904 | 156,768 | ||||||
0.595% due 05/25/36 " § | 151,079 | 151,707 | ||||||
0.600% due 02/25/37 " § | 35,709 | 35,813 | ||||||
0.835% due 02/25/41 " § | 288,137 | 291,843 | ||||||
First Horizon Mortgage Pass-Through Trust | 65,925 | 63,546 | ||||||
GSR Mortgage Loan Trust | 44,016 | 44,494 | ||||||
JP Morgan Mortgage Trust | 105,618 | 105,637 | ||||||
Merrill Lynch Mortgage Investors Trust | 128,401 | 128,116 | ||||||
New York Mortgage Trust | 440,966 | 404,517 | ||||||
Reperforming Loan REMIC Trust | 16,834 | 15,192 | ||||||
Residential Accredit Loans Inc Trust | 125,015 | 57,546 |
Principal | Value | |||||||
Structured Adjustable Rate Mortgage Loan Trust 0.405% due 02/25/35 " § | $33,512 | $29,318 | ||||||
Structured Asset Mortgage Investments II Trust 0.365% due 05/25/46 " § | 109,731 | 84,116 | ||||||
Wells Fargo Mortgage Backed Securities Trust 2.606% due 10/25/35 " § | 295,456 | 298,372 | ||||||
|
| |||||||
2,727,853 | ||||||||
|
| |||||||
Total Mortgage-Backed Securities | 3,106,400 | |||||||
|
| |||||||
ASSET-BACKED SECURITIES - 2.1% | ||||||||
Freddie Mac Structured | 1,763 | 1,653 | ||||||
Hillmark Funding Ltd CDO (Cayman) | 908,677 | 896,592 | ||||||
Park Place Securities Inc | 91,661 | 91,977 | ||||||
SLM Student Loan Trust | ||||||||
0.344% due 12/15/23 " § | EUR 1,263,731 | 1,586,587 | ||||||
0.354% due 09/15/21 " § | 120,358 | 152,254 | ||||||
Wood Street II BV CLO (Netherlands) | 73,838 | 92,932 | ||||||
|
| |||||||
Total Asset-Backed Securities |
| 2,821,995 | ||||||
|
| |||||||
U.S. TREASURY OBLIGATIONS - 105.9% | ||||||||
U.S. Treasury Inflation Protected Securities - 105.9% |
| |||||||
0.125% due 04/15/16 ^ ‡ | $755,573 | 764,722 | ||||||
0.125% due 04/15/17 ^ | 1,888,099 | 1,914,670 | ||||||
0.125% due 04/15/18 ^ | 6,488,685 | 6,547,799 | ||||||
0.125% due 04/15/19 ^ | 813,432 | 815,879 | ||||||
0.125% due 07/15/22 ^ | 16,576,800 | 16,198,650 | ||||||
0.375% due 07/15/23 ^ | 4,299,876 | 4,258,558 | ||||||
0.500% due 04/15/15 ^ ‡ | 4,504,856 | 4,513,195 | ||||||
0.625% due 07/15/21 ^ | 15,063,675 | 15,385,541 | ||||||
0.625% due 02/15/43 ^ | 3,108,840 | 2,751,081 | ||||||
1.125% due 01/15/21 ^ | 217,828 | 228,736 | ||||||
1.250% due 07/15/20 ^ | 23,487,452 | 24,964,428 | ||||||
1.375% due 02/15/44 ^ | 7,252,113 | 7,772,972 | ||||||
1.625% due 01/15/15 ^ | 15,458,564 | 15,480,270 | ||||||
1.750% due 01/15/28 ^ | 5,231,442 | 5,835,919 | ||||||
1.875% due 07/15/15 ^ ‡ | 857,423 | 876,983 | ||||||
1.875% due 07/15/19 ^ | 223,168 | 243,759 | ||||||
2.000% due 01/15/16 ^ | 5,638,015 | 5,838,344 | ||||||
2.125% due 02/15/41 ^ | 108,796 | 135,604 | ||||||
2.375% due 01/15/25 ^ | 2,148,732 | 2,520,396 | ||||||
2.375% due 01/15/27 ^ | 236,286 | 280,137 | ||||||
2.500% due 01/15/29 ^ | 2,108,430 | 2,577,885 | ||||||
2.625% due 07/15/17 ^ | 2,413,005 | 2,634,857 | ||||||
3.375% due 04/15/32 ^ | 201,341 | 280,351 | ||||||
3.875% due 04/15/29 ^ | 11,260,983 | 15,916,983 | ||||||
|
| |||||||
138,737,719 | ||||||||
|
| |||||||
Total U.S. Treasury Obligations |
| 138,737,719 | ||||||
|
| |||||||
FOREIGN GOVERNMENT BONDS & NOTES - 15.5% |
| |||||||
Australia Government (Australia) | AUD 1,200,000 | 1,153,600 | ||||||
Autonomous Community of Catalonia (Spain) 4.950% due 02/11/20 | EUR 200,000 | 283,210 | ||||||
Bundesrepublik Deutschland Bundesobligation Inflation Linked (Germany) | 4,658,500 | 6,186,415 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-8
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal | Value | |||||||
France Government OAT (France) | ||||||||
0.100% due 07/25/21 | EUR 100,864 | $133,343 | ||||||
0.250% due 07/25/18 | 414,420 | 545,970 | ||||||
0.700% due 07/25/30 | 99,900 | 134,484 | ||||||
Hellenic Railways Organization SA (Greece) | 200,000 | 249,903 | ||||||
IM Cedulas 4 Fondo de Titulazion de Activos | 300,000 | 384,732 | ||||||
Italy Buoni Poliennali Del Tesoro (Italy) | ||||||||
2.250% due 04/22/17 ~ | 600,408 | 790,011 | ||||||
2.350% due 09/15/24 ~ | 1,201,404 | 1,688,782 | ||||||
2.550% due 10/22/16 ~ | 1,000,680 | 1,316,368 | ||||||
2.550% due 09/15/41 | 216,478 | 298,117 | ||||||
3.100% due 09/15/26 ^ ~ | 105,650 | 158,412 | ||||||
Mexican Bonos de Proteccion al Ahorro (Mexico) | MXN 3,700,000 | 276,548 | ||||||
Mexican Udibonos (Mexico) | 18,125,209 | 1,463,925 | ||||||
New Zealand Government (New Zealand) | NZD 2,600,000 | 2,016,650 | ||||||
Slovenia Government International Bond (Slovenia) | EUR 300,000 | 409,200 | ||||||
Spain Government (Spain) | ||||||||
3.800% due 04/30/24 ~ | 600,000 | 871,865 | ||||||
5.400% due 01/31/23 ~ | 1,100,000 | 1,776,008 | ||||||
Xunta de Galicia (Spain) | 100,000 | 148,688 | ||||||
|
| |||||||
Total Foreign Government Bonds & Notes |
| 20,286,231 | ||||||
|
| |||||||
PURCHASED OPTIONS - 0.0% | ||||||||
(See Note (f) in Notes to Schedule of Investments) |
| 3 | ||||||
|
| |||||||
SHORT-TERM INVESTMENTS - 8.1% | ||||||||
U.S. Treasury Bills - 0.2% | ||||||||
0.044% due 10/30/14 ‡ | $168,000 | 167,997 | ||||||
0.050% due 10/16/14 ‡ | 102,000 | 101,999 | ||||||
|
| |||||||
269,996 | ||||||||
|
| |||||||
Repurchase Agreement - 7.5% | ||||||||
Morgan Stanley & Co LLC | 9,800,000 | 9,800,000 | ||||||
|
|
| Value | |||||||
Money Market Fund - 0.4% | ||||||||
BlackRock Liquidity Funds Treasury | 550,162 | $550,162 | ||||||
|
| |||||||
Total Short-Term Investments |
| 10,620,158 | ||||||
|
| |||||||
TOTAL INVESTMENTS - 135.0% |
| 176,852,466 | ||||||
OTHER ASSETS & LIABILITIES, NET - (35.0%) |
| (45,842,797 | ) | |||||
|
| |||||||
NET ASSETS - 100.0% |
| $131,009,669 | ||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
U.S. Treasury Obligations | 105.9% | |||
Foreign Government Bonds & Notes | 15.5% | |||
Short-Term Investments | 8.1% | |||
Others (each less than 3.0%) | 5.5% | |||
|
| |||
135.0% | ||||
Other Assets & Liabilities, Net | (35.0% | ) | ||
|
| |||
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) | 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, 2014 was $33,260,270 at a weighted average interest rate of 0.119%. |
(d) | Open futures contracts outstanding as of September 30, 2014 were as follows: |
Long Futures Outstanding | Number of Contracts | Unrealized Depreciation | ||||||
Eurodollar (03/16) | 16 | ($3,016 | ) | |||||
U.S. Treasury 5-Year Notes (12/14) | 52 | (14,277 | ) | |||||
U.S. Treasury 10-Year Notes (12/14) | 45 | (32,269 | ) | |||||
|
| |||||||
(49,562 | ) | |||||||
|
| |||||||
Short Futures Outstanding | ||||||||
Euro-Bund 10-Year Notes (12/14) | 24 | (15,883 | ) | |||||
|
| |||||||
Total Futures Contracts | ($65,445 | ) | ||||||
|
|
(e) | Forward foreign currency contracts outstanding as of September 30, 2014 were as follows: |
Currency | Currency | Expiration | Counterparty | Unrealized Appreciation (Depreciation) | ||||||||||||||||
AUD | 2,940,000 | USD | 2,608,698 | 10/14 | CIT | ($34,584 | ) | |||||||||||||
AUD | 1,519,000 | USD | 1,323,072 | 11/14 | HSB | 3,432 | ||||||||||||||
BRL | 4,737,960 | USD | 2,073,139 | 10/14 | UBS | (138,615 | ) | |||||||||||||
BRL | 1,072,477 | USD | 452,331 | 11/14 | UBS | (18,528 | ) | |||||||||||||
EUR | 493,369 | USD | 632,281 | 10/14 | CIT | (9,127 | ) | |||||||||||||
EUR | 31,000 | USD | 40,143 | 10/14 | GSC | (988 | ) | |||||||||||||
EUR | 145,000 | USD | 188,042 | 10/14 | JPM | (4,896 | ) | |||||||||||||
EUR | 19,604,000 | USD | 25,073,517 | 10/14 | UBS | (312,550 | ) | |||||||||||||
EUR | 427,369 | USD | 542,405 | 11/14 | CIT | (2,486 | ) | |||||||||||||
EUR | 3,417,000 | USD | 4,355,476 | 11/14 | HSB | (38,583 | ) |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-9
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Currency | Currency | Expiration | Counterparty | Unrealized Appreciation (Depreciation) | ||||||||||||||||
GBP | 338,000 | USD | 553,414 | 12/14 | BRC | ($5,814 | ) | |||||||||||||
INR | 61,136,310 | USD | 1,009,000 | 10/14 | BRC | (22,493 | ) | |||||||||||||
INR | 14,442,792 | USD | 238,000 | 10/14 | CIT | (4,948 | ) | |||||||||||||
INR | 12,715,500 | USD | 210,000 | 10/14 | DUB | (4,820 | ) | |||||||||||||
INR | 144,096,970 | USD | 2,367,290 | 10/14 | UBS | (42,114 | ) | |||||||||||||
INR | 203,696,690 | USD | 3,265,192 | 01/15 | CIT | (47,587 | ) | |||||||||||||
JPY | 72,885,950 | USD | 670,000 | 10/14 | CIT | (5,437 | ) | |||||||||||||
JPY | 347,775,963 | USD | 3,195,002 | 10/14 | JPM | (24,034 | ) | |||||||||||||
JPY | 72,885,950 | USD | 669,452 | 11/14 | UBS | (4,721 | ) | |||||||||||||
MXN | 2,842,000 | USD | 217,463 | 12/14 | BRC | (7,009 | ) | |||||||||||||
MXN | 9,961,000 | USD | 757,181 | 12/14 | CIT | (19,557 | ) | |||||||||||||
MYR | 2,684,388 | USD | 837,563 | 10/14 | BRC | (20,167 | ) | |||||||||||||
MYR | 1,115,730 | USD | 350,000 | 10/14 | JPM | (10,260 | ) | |||||||||||||
MYR | 3,329,326 | USD | 1,026,303 | 01/15 | UBS | (19,081 | ) | |||||||||||||
USD | 2,726,634 | AUD | 2,940,000 | 10/14 | JPM | 152,905 | ||||||||||||||
USD | 2,602,519 | AUD | 2,940,000 | 11/14 | CIT | 35,092 | ||||||||||||||
USD | 1,097,000 | BRL | 2,467,153 | 10/14 | DUB | 89,653 | ||||||||||||||
USD | 530,000 | BRL | 1,198,330 | 10/14 | GSC | 40,718 | ||||||||||||||
USD | 456,373 | BRL | 1,072,477 | 10/14 | UBS | 18,477 | ||||||||||||||
USD | 94,821 | CAD | 105,000 | 10/14 | GSC | 1,106 | ||||||||||||||
USD | 26,196,563 | EUR | 19,846,000 | 10/14 | GSC | 1,129,601 | ||||||||||||||
USD | 25,078,713 | EUR | 19,604,000 | 11/14 | UBS | 311,850 | ||||||||||||||
USD | 918,422 | GBP | 571,000 | 12/14 | BRC | (6,667 | ) | |||||||||||||
USD | 3,317,536 | INR | 203,696,690 | 10/14 | CIT | 30,647 | ||||||||||||||
USD | 466,000 | INR | 28,694,882 | 10/14 | JPM | 2,974 | ||||||||||||||
USD | 743,000 | INR | 46,118,010 | 01/15 | UBS | 14,517 | ||||||||||||||
USD | 3,340,835 | JPY | 347,775,963 | 10/14 | GSC | 169,820 | ||||||||||||||
USD | 669,292 | JPY | 72,885,950 | 10/14 | UBS | 4,729 | ||||||||||||||
USD | 3,195,765 | JPY | 347,775,963 | 11/14 | JPM | 23,993 | ||||||||||||||
USD | 1,690,000 | MXN | 22,417,850 | 12/14 | CIT | 29,931 | ||||||||||||||
USD | 700,000 | MXN | 9,175,600 | 12/14 | UBS | 20,536 | ||||||||||||||
USD | 456,347 | MXN | 6,029,947 | 02/15 | RBC | 11,337 | ||||||||||||||
USD | 146,000 | MYR | 470,792 | 10/14 | JPM | 2,644 | ||||||||||||||
USD | 1,382,766 | MYR | 4,475,676 | 10/14 | UBS | 19,923 | ||||||||||||||
USD | 214,000 | MYR | 698,860 | 01/15 | JPM | 2,574 | ||||||||||||||
USD | 549,426 | NZD | 657,000 | 10/14 | HSB | 36,646 | ||||||||||||||
USD | 1,489,290 | NZD | 1,885,000 | 11/14 | HSB | 23,128 | ||||||||||||||
|
| |||||||||||||||||||
Total Forward Foreign Currency Contracts | $1,371,167 | |||||||||||||||||||
|
|
(f) | Purchased options outstanding as of September 30, 2014 were as follows: |
Interest Rate Swaptions
Description | Pay/Receive Floating Rate Based on 3-Month EUR-LIBOR | Exercise Rate | Expiration Date | Counter- party | Notional Amount | Cost | Value | |||||||||||||||||
Put - 5-Year Interest Rate Swap | Receive | 1.000% | 11/10/14 | GSC | EUR 2,400,000 | $33,392 | $3 | |||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total Purchased Options | $33,392 | $3 | ||||||||||||||||||||||
|
|
|
|
(g) | Transactions in written options for the six-month period ended September 30, 2014 were as follows: |
Number of Contracts | Notional Amount in EUR | Notional Amount in $ | Premium | |||||||||||||
Outstanding, March 31, 2014 | 24 | 4,200,000 | 33,535,000 | $235,686 | ||||||||||||
Call Options Written | 120 | 1,300,000 | 5,010,000 | 88,649 | ||||||||||||
Put Options Written | 25 | 11,400,000 | 9,050,000 | 108,189 | ||||||||||||
Call Options Closed | (119 | ) | — | — | (53,529 | ) | ||||||||||
Put Options Closed | — | — | (22,750,000 | ) | (80,697 | ) | ||||||||||
Call Options Expired | — | — | (6,450,000 | ) | (57,656 | ) | ||||||||||
Put Options Expired | — | (6,300,000 | ) | (8,185,000 | ) | (108,663 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Outstanding, September 30, 2014 | 50 | 10,600,000 | 10,210,000 | $131,979 | ||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-10
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
(h) | Premiums received and value of written options outstanding as of September 30, 2014 were as follows: |
Credit Default Swaptions on Credit Indices – Sell Protection (1)
Description | Exercise Rate | Expiration Date | Counter- party | Notional Amount (2) | Premium | Value (3) | ||||||||||||||
Put - CDX IG 22 5Y | 0.850% | 12/17/14 | CIT | $700,000 | $823 | ($916 | ) | |||||||||||||
Put - iTraxx Europe 21 5Y | 0.850% | 12/17/14 | GSC | EUR 1,400,000 | 3,906 | (1,887 | ) | |||||||||||||
Put - CDX IG 22 5Y | 0.850% | 12/17/14 | JPM | $900,000 | 1,035 | (1,178 | ) | |||||||||||||
Put - CDX IG 22 5Y | 0.900% | 12/17/14 | CIT | 700,000 | 1,330 | (726 | ) | |||||||||||||
Put - CDX IG 22 5Y | 0.900% | 12/17/14 | JPM | 100,000 | 225 | (104 | ) | |||||||||||||
Put - CDX IG 22 5Y | 0.950% | 12/17/14 | CIT | 300,000 | 611 | (247 | ) | |||||||||||||
Put - iTraxx Europe 21 5Y | 0.950% | 12/17/14 | GSC | EUR 1,500,000 | 3,019 | (1,220 | ) | |||||||||||||
Put - CDX IG 22 5Y | 0.950% | 12/17/14 | JPM | $400,000 | 705 | (329 | ) | |||||||||||||
Put - iTraxx Europe 21 5Y | 0.950% | 12/17/14 | JPM | EUR 300,000 | 528 | (244 | ) | |||||||||||||
Put - CDX IG 22 5Y | 1.000% | 12/17/14 | CIT | $100,000 | 197 | (66 | ) | |||||||||||||
Put - CDX IG 22 5Y | 0.900% | 01/21/15 | GSC | 200,000 | 294 | (323 | ) | |||||||||||||
|
|
|
| |||||||||||||||||
$12,673 | ($7,240 | ) | ||||||||||||||||||
|
|
|
|
(1) | If the fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swaption agreement, the fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swaption 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 swaption less the recovery value of the referenced obligation or underlying investments comprising the referenced index. The fund is only obligated if the swaption is exercised. |
(2) | 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 swaption agreement. |
(3) | The quoted market prices and resulting values for credit default swaption agreements on credit indices serve as an indicator of the current status of the payment/ performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative had the notional amount of the swaption agreement been closed/sold as of period end. Increasing values, in absolute terms when compared to the notional amount of the swaption, 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. |
Foreign Currency Options
Description | Exercise Price | Expiration Date | Counter- party | Notional Amount | Premium | Value | ||||||||||||||||||
Call - INR versus USD | INR 65.00 | 03/10/15 | JPM | $900,000 | $10,552 | ($13,609 | ) | |||||||||||||||||
Call - BRL versus USD | BRL 2.68 | 07/01/15 | DUB | 510,000 | 12,153 | (24,416 | ) | |||||||||||||||||
|
|
|
| |||||||||||||||||||||
$22,705 | ($38,025 | ) | ||||||||||||||||||||||
|
|
|
|
Inflation Floor/Cap Options
Description | Initial Index | Floating Rate | Expiration Date | Counter- party | Notional Amount | Premium | Value | |||||||||||||||||
Floor - U.S. CPI Urban Consumers NSA | 0.00 | Maximum of [(1+0.00%)10 - | 04/07/20 | CIT | $2,000,000 | $17,720 | ($498 | ) | ||||||||||||||||
Floor - U.S. CPI Urban Consumers NSA | 0.00 | Maximum of [(1+0.00%)10 - | 09/29/20 | CIT | 300,000 | 3,870 | (70 | ) | ||||||||||||||||
Cap - U.S. CPI Urban Consumers NSA | 0.00 | Maximum of [(1+0.00%)10 - | 04/22/24 | JPM | 1,900,000 | 13,822 | (5,489 | ) | ||||||||||||||||
Cap - U.S. CPI Urban Consumers NSA | 0.00 | Maximum of [(1+0.00%)10 - | 05/16/24 | JPM | 200,000 | 1,390 | (616 | ) | ||||||||||||||||
|
|
|
| |||||||||||||||||||||
$36,802 | ($6,673 | ) | ||||||||||||||||||||||
|
|
|
|
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 - 5-Year Interest Rate Swap | Receive | 3.200% | 11/18/14 | JPM | $1,000,000 | $2,675 | ($1,109 | ) | ||||||||||||||||
Based on | ||||||||||||||||||||||||
Call - 10-Year Interest Rate Swap | Receive | 1.000% | 12/15/14 | GSC | EUR 1,300,000 | 2,523 | (2,916 | ) | ||||||||||||||||
|
|
|
| |||||||||||||||||||||
5,198 | (4,025 | ) | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Put - 5-Year Interest Rate Swap | Pay | 1.235% | 11/10/14 | GSC | 4,800,000 | 33,392 | — | |||||||||||||||||
Put - 10-Year Interest Rate Swap | Pay | 1.500% | 12/15/14 | GSC | 1,300,000 | 5,383 | (2,117 | ) | ||||||||||||||||
|
|
|
| |||||||||||||||||||||
38,775 | (2,117 | ) | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
$43,973 | ($6,142 | ) | ||||||||||||||||||||||
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-11
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Options on Futures
Description | Exercise Price | Expiration Date | Exchange | Number of Contracts | Premium | Value | ||||||||||||||||||
Call - Euro-Bund 10-Year (11/14) | EUR 150.00 | 10/24/14 | EUX | 3 | $696 | ($1,932 | ) | |||||||||||||||||
Call - Euro-Bund 10-Year (11/14) | 150.50 | 10/24/14 | EUX | 22 | 5,660 | (9,170 | ) | |||||||||||||||||
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| |||||||||||||||||||||
6,356 | (11,102 | ) | ||||||||||||||||||||||
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| |||||||||||||||||||||
Put - Euro-Bund 10-Year (11/14) | 146.00 | 10/24/14 | EUX | 3 | 1,020 | (76 | ) | |||||||||||||||||
Put - Euro-Bund 10-Year (11/14) | 146.50 | 10/24/14 | EUX | 22 | 8,450 | (1,111 | ) | |||||||||||||||||
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| |||||||||||||||||||||
9,470 | (1,187 | ) | ||||||||||||||||||||||
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| |||||||||||||||||||||
$15,826 | ($12,289 | ) | ||||||||||||||||||||||
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| |||||||||||||||||||||
Total Written Options | $131,979 | ($70,369 | ) | |||||||||||||||||||||
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|
(i) | Swap agreements outstanding as of September 30, 2014 were as follows: |
Credit Default Swaps on Sovereign Issues – Sell Protection (1)
Referenced Obligation | Fixed Deal Receive Rate | | Expiration Date | | Counter- party | Implied Credit Spread at 09/30/14 (2) | | Notional Amount (3) | | Value | | Upfront Premiums Paid (Received) | | | Unrealized Appreciation (Depreciation) | | ||||||||||
Greek Government | 1.000% | 06/20/15 | MSC | 3.923% | EUR 100,000 | ($2,593 | ) | ($4,702 | ) | $2,109 | ||||||||||||||||
Greek Government | 1.000% | 12/20/16 | GSC | 4.926% | $100,000 | (8,047 | ) | (7,501 | ) | (546 | ) | |||||||||||||||
Italian Government | 1.000% | 03/20/19 | DUB | 0.931% | 1,900,000 | 6,191 | (33,172 | ) | 39,363 | |||||||||||||||||
Russian Government | 1.000% | 03/20/19 | HSB | 2.398% | 100,000 | (5,716 | ) | (8,422 | ) | 2,706 | ||||||||||||||||
Spain Government | 1.000% | 03/20/19 | HSB | 0.700% | 200,000 | 2,644 | (1,509 | ) | 4,153 | |||||||||||||||||
Brazilian Government | 1.000% | 03/20/19 | MSC | 1.548% | 1,500,000 | (34,432 | ) | (76,076 | ) | 41,644 | ||||||||||||||||
Spain Government | 1.000% | 03/20/19 | MSC | 0.700% | 400,000 | 5,288 | (2,456 | ) | 7,744 | |||||||||||||||||
Russian Government | 1.000% | 09/20/19 | GSC | 2.459% | 100,000 | (6,554 | ) | (5,502 | ) | (1,052 | ) | |||||||||||||||
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| |||||||||||||||||||||
($43,219 | ) | ($139,340 | ) | $96,121 | ||||||||||||||||||||||
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|
|
Credit Default Swaps on Credit Indices – Sell Protection (1)
Referenced Obligation | Fixed Deal Receive Rate | | Expiration Date | | Exchange | | Notional Amount (3) | | Value (4) | | Upfront Premiums Paid (Received) | | | Unrealized Appreciation | | |||||||||||
iTraxx Europe 21 5Y | 1.000% | 06/20/19 | ICE | EUR 6,150,000 | $133,744 | $129,020 | $4,724 | |||||||||||||||||||
iTraxx Europe 21 10Y | 1.000% | 06/20/24 | ICE | 1,400,000 | (13,765 | ) | (34,551 | ) | 20,786 | |||||||||||||||||
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| |||||||||||||||||||||
$119,979 | $94,469 | $25,510 | ||||||||||||||||||||||||
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| |||||||||||||||||||||
$76,760 | ($44,871 | ) | $121,631 | |||||||||||||||||||||||
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(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) | 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 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. |
(3) | 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. |
(4) | 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 represent 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 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. |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-12
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
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) | ||||||||||||||||||||
BRL - CDI Compounded | JPM | Pay | 7.900% | 01/02/15 | BRL 100,000 | ($1,055 | ) | ($357 | ) | ($698 | ) | |||||||||||||||||
BRL - CDI Compounded | UBS | Pay | 10.410% | 01/02/15 | 700,000 | 171 | 415 | (244 | ) | |||||||||||||||||||
US CPI Urban Consumers NSA | DUB | Receive | 1.800% | 01/17/16 | $3,400,000 | 1,883 | (220 | ) | 2,103 | |||||||||||||||||||
BRL - CDI Compounded | UBS | Pay | 8.150% | 01/02/17 | BRL 3,700,000 | (121,442 | ) | — | (121,442 | ) | ||||||||||||||||||
BRL - CDI Compounded | MSC | Pay | 8.220% | 01/02/17 | 4,700,000 | (149,941 | ) | (249 | ) | (149,692 | ) | |||||||||||||||||
BRL - CDI Compounded | GSC | Pay | 8.300% | 01/02/17 | 3,000,000 | (91,317 | ) | 3,861 | (95,178 | ) | ||||||||||||||||||
BRL - CDI Compounded | BRC | Pay | 10.910% | 01/02/17 | 200,000 | (806 | ) | 243 | (1,049 | ) | ||||||||||||||||||
BRL - CDI Compounded | DUB | Pay | 10.910% | 01/02/17 | 2,300,000 | (9,266 | ) | (1,301 | ) | (7,965 | ) | |||||||||||||||||
BRL - CDI Compounded | GSC | Pay | 10.910% | 01/02/17 | 3,700,000 | (14,905 | ) | (517 | ) | (14,388 | ) | |||||||||||||||||
BRL - CDI Compounded | MSC | Pay | 10.910% | 01/02/17 | 200,000 | (806 | ) | (93 | ) | (713 | ) | |||||||||||||||||
BRL - CDI Compounded | UBS | Pay | 10.910% | 01/02/17 | 3,500,000 | (14,100 | ) | 4,190 | (18,290 | ) | ||||||||||||||||||
US CPI Urban Consumers NSA | DUB | Receive | 1.935% | 01/20/17 | $1,300,000 | (2,435 | ) | — | (2,435 | ) | ||||||||||||||||||
US CPI Urban Consumers NSA | GSC | Receive | 2.415% | 02/12/17 | 600,000 | (16,978 | ) | — | (16,978 | ) | ||||||||||||||||||
US CPI Urban Consumers NSA | CIT | Receive | 2.250% | 07/15/17 | 4,100,000 | (115,311 | ) | 984 | (116,295 | ) | ||||||||||||||||||
US CPI Urban Consumers NSA | DUB | Receive | 2.250% | 07/15/17 | 3,800,000 | (106,873 | ) | 3,520 | (110,393 | ) | ||||||||||||||||||
US CPI Urban Consumers NSA | RBS | Receive | 2.250% | 07/15/17 | 2,600,000 | (73,124 | ) | (2,517 | ) | (70,607 | ) | |||||||||||||||||
US CPI Urban Consumers NSA | UBS | Receive | 2.215% | 01/17/19 | 800,000 | (8,446 | ) | — | (8,446 | ) | ||||||||||||||||||
BRL - CDI Compounded | DUB | Pay | 11.160% | 01/04/21 | BRL 1,000,000 | (10,856 | ) | 165 | (11,021 | ) | ||||||||||||||||||
BRL - CDI Compounded | MSC | Pay | 11.500% | 01/04/21 | 1,100,000 | (6,998 | ) | 4,773 | (11,771 | ) | ||||||||||||||||||
BRL - CDI Compounded | UBS | Pay | 11.500% | 01/04/21 | 1,100,000 | (6,998 | ) | 2,236 | (9,234 | ) | ||||||||||||||||||
France CPI Excluding Tobacco | DUB | Receive | 1.950% | 07/25/23 | EUR 300,000 | 22,697 | 2,951 | 19,746 | ||||||||||||||||||||
France CPI Excluding Tobacco | MSC | Receive | 1.950% | 07/25/23 | 300,000 | 22,697 | 3,320 | 19,377 | ||||||||||||||||||||
France CPI Excluding Tobacco | RBS | Receive | 1.950% | 07/25/23 | 100,000 | 7,566 | 1,019 | 6,547 | ||||||||||||||||||||
France CPI Excluding Tobacco | CIT | Receive | 2.108% | 10/08/23 | 400,000 | 38,307 | 5,151 | 33,156 | ||||||||||||||||||||
GBP Retail Price Index | JPM | Receive | 3.528% | 09/23/44 | GBP 200,000 | 2 | 298 | (296 | ) | |||||||||||||||||||
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| |||||||||||||||||||||||
(658,334 | ) | 27,872 | (686,206 | ) | ||||||||||||||||||||||||
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| |||||||||||||||||||||||
Exchange | ||||||||||||||||||||||||||||
6-Month JPY LIBOR | CME | Receive | 1.000% | 09/18/23 | JPY 330,000,000 | (117,862 | ) | (25,260 | ) | (92,602 | ) | |||||||||||||||||
6-Month EUR LIBOR | CME | Receive | 2.000% | 01/29/24 | EUR 1,600,000 | (187,556 | ) | — | (187,556 | ) | ||||||||||||||||||
6-Month EUR LIBOR | CME | Receive | 1.250% | 03/18/25 | 300,000 | (230 | ) | 2,598 | (2,828 | ) | ||||||||||||||||||
3-Month USD LIBOR | CME | Receive | 2.750% | 06/19/43 | $3,900,000 | 314,664 | 714,754 | (400,090 | ) | |||||||||||||||||||
3-Month USD LIBOR | CME | Receive | 3.500% | 12/18/43 | 300,000 | (20,881 | ) | 10,930 | (31,811 | ) | ||||||||||||||||||
3-Month USD LIBOR | CME | Receive | 3.500% | 12/17/44 | 1,800,000 | (96,344 | ) | (72,710 | ) | (23,634 | ) | |||||||||||||||||
6-Month EUR LIBOR | CME | Receive | 2.000% | 03/18/45 | EUR 1,400,000 | (18,084 | ) | 1,550 | (19,634 | ) | ||||||||||||||||||
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| |||||||||||||||||||||||
(126,293 | ) | 631,862 | (758,155 | ) | ||||||||||||||||||||||||
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| |||||||||||||||||||||||
($784,627 | ) | $659,734 | ($1,444,361 | ) | ||||||||||||||||||||||||
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| |||||||||||||||||||||||
Total Swap Agreements | ($707,867 | ) | $614,863 | ($1,322,730 | ) | |||||||||||||||||||||||
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(j) | As of September 30, 2014, investments with a total aggregate value of $1,201,667 were fully or partially segregated with the broker(s)/custodian as collateral for open futures contracts, forward foreign currency contracts, option contracts and swap agreements. |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-13
PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
(k) | 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, 2014:
| Total Value at September 30, 2014 | | | Level 1 Quoted Price | | | Level 2 Significant Observable Inputs | | | Level 3 Significant Unobservable Inputs | | |||||||
Assets | Corporate Bonds & Notes | $1,279,960 | $— | $1,279,960 | $— | |||||||||||||
Mortgage-Backed Securities | 3,106,400 | — | 3,106,400 | — | ||||||||||||||
Asset-Backed Securities | 2,821,995 | — | 2,821,995 | — | ||||||||||||||
U.S. Treasury Obligations | 138,737,719 | — | 138,737,719 | — | ||||||||||||||
Foreign Government Bonds & Notes | 20,286,231 | — | 20,286,231 | — | ||||||||||||||
Short-Term Investments | 10,620,158 | 550,162 | 10,069,996 | — | ||||||||||||||
Derivatives: | ||||||||||||||||||
Credit Contracts | ||||||||||||||||||
Swaps | 147,867 | — | 147,867 | — | ||||||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Forward Foreign Currency Contracts | 2,176,233 | — | 2,176,233 | — | ||||||||||||||
Interest Rate Contracts | ||||||||||||||||||
Purchased Options | 3 | — | 3 | — | ||||||||||||||
Swaps | 407,987 | — | 407,987 | — | ||||||||||||||
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|
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|
| |||||||||||
Total Interest Rate Contracts | 407,990 | — | 407,990 | — | ||||||||||||||
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|
|
|
|
|
|
| |||||||||||
Total Assets - Derivatives | 2,732,090 | — | 2,732,090 | — | ||||||||||||||
|
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|
|
|
|
|
| |||||||||||
Total Assets | 179,584,553 | 550,162 | 179,034,391 | — | ||||||||||||||
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| |||||||||||
Liabilities | Derivatives: | |||||||||||||||||
Credit Contracts | ||||||||||||||||||
Written Options | (7,240 | ) | — | (7,240 | ) | — | ||||||||||||
Swaps | (71,107 | ) | — | (71,107 | ) | — | ||||||||||||
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|
|
|
|
|
|
| |||||||||||
Total Credit Contracts | (78,347 | ) | — | (78,347 | ) | — | ||||||||||||
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|
|
| |||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Written Options | (38,025 | ) | — | (38,025 | ) | |||||||||||||
Forward Foreign Currency Contracts | (805,066 | ) | — | (805,066 | ) | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Foreign Currency Contracts | (843,091 | ) | — | (843,091 | ) | — | ||||||||||||
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|
|
| |||||||||||
Interest Rate Contracts | ||||||||||||||||||
Futures | (65,445 | ) | (65,445 | ) | — | — | ||||||||||||
Written Options | (25,104 | ) | (12,289 | ) | (12,815 | ) | — | |||||||||||
Swaps | (1,192,614 | ) | — | (1,192,614 | ) | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Interest Rate Contracts | (1,283,163 | ) | (77,734 | ) | (1,205,429 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities - Derivatives | (2,204,601 | ) | (77,734 | ) | (2,126,867 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities | (2,204,601 | ) | (77,734 | ) | (2,126,867 | ) | — | |||||||||||
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|
|
|
|
|
|
| |||||||||||
Total | $177,379,952 | $472,428 | $176,907,524 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
Certain of the fund’s liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of September 30, 2014 such liabilities are categorized within the three-tier hierarchy of inputs as follows:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Liabilities | Sale-Buyback Financing Transactions | ($52,021,098 | ) | $— | ($52,021,098 | ) | $— | |||||||||||
|
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|
|
|
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|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-14
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments
September 30, 2014 (Unaudited)
Principal | | |||||||
CORPORATE BONDS & NOTES - 26.2% | ||||||||
Consumer Discretionary - 1.9% | ||||||||
21st Century Fox America Inc | $100,000 | $121,804 | ||||||
CCO Holdings LLC | 300,000 | 317,625 | ||||||
Comcast Cable Communications Holdings Inc | 200,000 | 287,738 | ||||||
Comcast Corp | ||||||||
5.150% due 03/01/20 | 900,000 | 1,021,549 | ||||||
6.550% due 07/01/39 | 270,000 | 354,065 | ||||||
DISH DBS Corp | ||||||||
5.000% due 03/15/23 | 90,000 | 86,569 | ||||||
6.750% due 06/01/21 | 300,000 | 323,249 | ||||||
Ford Motor Co | 440,000 | 442,076 | ||||||
General Motors Co | 50,000 | 58,751 | ||||||
MGM Resorts International | 3,371,000 | 3,472,130 | ||||||
Motors Liquidation Co-Escrow Receipts | EUR 200,000 | — | ||||||
New Red Finance Inc | $180,000 | 179,774 | ||||||
Numericable Group SA (France) | 200,000 | 201,750 | ||||||
Taylor Morrison Communities Inc | 300,000 | 294,000 | ||||||
Time Warner Cable Inc | ||||||||
4.125% due 02/15/21 | 100,000 | 106,418 | ||||||
5.875% due 11/15/40 | 200,000 | 236,166 | ||||||
6.550% due 05/01/37 | 190,000 | 240,463 | ||||||
8.250% due 04/01/19 | 500,000 | 621,793 | ||||||
Time Warner Entertainment Co LP | 100,000 | 148,124 | ||||||
Time Warner Inc | ||||||||
3.150% due 07/15/15 | 1,860,000 | 1,897,194 | ||||||
7.700% due 05/01/32 | 800,000 | 1,099,172 | ||||||
Viacom Inc | ||||||||
1.250% due 02/27/15 | 800,000 | 802,738 | ||||||
4.250% due 09/01/23 | 230,000 | 237,422 | ||||||
Virgin Media Secured Finance PLC (United Kingdom) | 300,000 | 303,750 | ||||||
|
| |||||||
12,854,320 | ||||||||
|
| |||||||
Consumer Staples - 1.5% | ||||||||
Altria Group Inc | ||||||||
2.850% due 08/09/22 | 800,000 | 767,794 | ||||||
5.375% due 01/31/44 | 200,000 | 213,899 | ||||||
9.250% due 08/06/19 | 320,000 | 417,087 | ||||||
9.950% due 11/10/38 | 100,000 | 165,847 | ||||||
10.200% due 02/06/39 | 20,000 | 33,801 | ||||||
Anheuser-Busch InBev Worldwide Inc | ||||||||
2.500% due 07/15/22 | 640,000 | 605,972 | ||||||
5.375% due 01/15/20 | 540,000 | 610,070 | ||||||
Constellation Brands Inc | 1,100,000 | 1,114,575 | ||||||
CVS Health Corp | 1,000,000 | 956,115 | ||||||
Diageo Investment Corp | 430,000 | 422,359 | ||||||
H.J. Heinz Co | 300,000 | 298,875 | ||||||
Kraft Foods Group Inc | 450,000 | 456,375 | ||||||
Lorillard Tobacco Co | ||||||||
3.750% due 05/20/23 | 260,000 | 256,235 | ||||||
8.125% due 06/23/19 | 120,000 | 146,974 |
Principal | | |||||||
Mondelez International Inc | $370,000 | $379,951 | ||||||
Pernod-Ricard SA (France) | ||||||||
4.450% due 01/15/22 ~ | 500,000 | 529,321 | ||||||
5.500% due 01/15/42 ~ | 150,000 | 166,131 | ||||||
Philip Morris International Inc | ||||||||
2.500% due 08/22/22 | 310,000 | 296,668 | ||||||
4.500% due 03/20/42 | 310,000 | 312,479 | ||||||
Reynolds American Inc | ||||||||
3.250% due 11/01/22 | 160,000 | 154,692 | ||||||
6.150% due 09/15/43 | 30,000 | 34,442 | ||||||
6.750% due 06/15/17 | 200,000 | 225,879 | ||||||
Reynolds Group Issuer Inc | 500,000 | 511,250 | ||||||
Tyson Foods Inc | 60,000 | 62,347 | ||||||
Wal-Mart Stores Inc | 100,000 | 115,900 | ||||||
Wm Wrigley Jr Co | 400,000 | 406,619 | ||||||
|
| |||||||
9,661,657 | ||||||||
|
| |||||||
Energy - 2.4% | ||||||||
Access Midstream Partners LP | 300,000 | 307,875 | ||||||
Anadarko Petroleum Corp | ||||||||
4.500% due 07/15/44 | 200,000 | 193,478 | ||||||
8.700% due 03/15/19 | 420,000 | 528,851 | ||||||
California Resources Corp | 210,000 | 216,300 | ||||||
Chesapeake Energy Corp | 300,000 | 327,750 | ||||||
CNPC General Capital Ltd | 1,800,000 | 1,805,301 | ||||||
Colorado Interstate Gas Co LLC | 200,000 | 212,990 | ||||||
Concho Resources Inc | 300,000 | 313,500 | ||||||
ConocoPhillips | 100,000 | 131,360 | ||||||
Continental Resources Inc | 200,000 | 196,352 | ||||||
Devon Energy Corp | ||||||||
3.250% due 05/15/22 | 220,000 | 218,831 | ||||||
7.950% due 04/15/32 | 270,000 | 382,780 | ||||||
Ecopetrol SA (Colombia) | 300,000 | 305,460 | ||||||
Key Energy Services Inc | 450,000 | 435,375 | ||||||
Kinder Morgan Energy Partners LP | 210,000 | 246,629 | ||||||
Kinder Morgan Inc | 400,000 | 419,000 | ||||||
Markwest Energy Partners LP | 250,000 | 256,875 | ||||||
Noble Energy Inc | ||||||||
5.250% due 11/15/43 | 150,000 | 158,833 | ||||||
8.250% due 03/01/19 | 320,000 | 396,115 | ||||||
Penn Virginia Resource Partners LP | 220,000 | 240,900 | ||||||
Petrobras Global Finance BV (Netherlands) | 650,000 | 681,070 | ||||||
Petrobras International Finance Co (Luxembourg) | ||||||||
5.375% due 01/27/21 | 1,600,000 | 1,623,840 | ||||||
5.875% due 03/01/18 | 400,000 | 432,800 | ||||||
Petroleos Mexicanos (Mexico) | ||||||||
6.375% due 01/23/45 ~ | 500,000 | 566,650 | ||||||
8.000% due 05/03/19 | 750,000 | 914,625 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-15
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal | | |||||||
QEP Resources Inc | ||||||||
5.250% due 05/01/23 | $200,000 | $195,000 | ||||||
6.875% due 03/01/21 | 200,000 | 218,000 | ||||||
Regency Energy Partners LP | 300,000 | 314,250 | ||||||
Rockies Express Pipeline LLC | 1,000,000 | 1,000,000 | ||||||
Sabine Pass Liquefaction LLC | 140,000 | 144,550 | ||||||
Samson Investment Co | 280,000 | 255,500 | ||||||
Shell International Finance BV (Netherlands) | 390,000 | 430,770 | ||||||
Sinopec Group Overseas Development Ltd (United Kingdom) | ||||||||
2.750% due 05/17/17 ~ | 250,000 | 256,524 | ||||||
4.375% due 04/10/24 ~ | 550,000 | 566,067 | ||||||
The Williams Cos Inc | 450,000 | 523,119 | ||||||
Woodside Finance Ltd (Australia) | 100,000 | 100,416 | ||||||
|
| |||||||
15,517,736 | ||||||||
|
| |||||||
Financials - 13.9% | ||||||||
AerCap Ireland Capital Ltd (Ireland) | 400,000 | 388,500 | ||||||
Ally Financial Inc | ||||||||
2.750% due 01/30/17 | 1,000,000 | 982,500 | ||||||
4.625% due 06/26/15 | 300,000 | 304,920 | ||||||
8.300% due 02/12/15 | 600,000 | 613,500 | ||||||
American International Group Inc | ||||||||
5.450% due 05/18/17 | 100,000 | 110,275 | ||||||
6.250% due 03/15/87 | 1,000,000 | 1,126,937 | ||||||
8.250% due 08/15/18 | 530,000 | 648,031 | ||||||
Banco Santander Brasil SA (Brazil) | 300,000 | 311,259 | ||||||
Banco Santander Chile (Chile) | 1,000,000 | 1,012,500 | ||||||
Bank of America Corp | ||||||||
2.600% due 01/15/19 | 660,000 | 659,243 | ||||||
4.000% due 04/01/24 | 1,500,000 | 1,517,849 | ||||||
4.200% due 08/26/24 | 390,000 | 386,585 | ||||||
4.500% due 04/01/15 | 5,100,000 | 5,199,787 | ||||||
4.875% due 04/01/44 | 1,000,000 | 1,040,981 | ||||||
5.000% due 05/13/21 | 600,000 | 659,965 | ||||||
5.700% due 05/02/17 | 150,000 | 164,580 | ||||||
5.750% due 12/01/17 | 750,000 | 835,202 | ||||||
6.250% § ± | 480,000 | 479,400 | ||||||
Bank of Montreal (Canada) | 100,000 | 101,716 | ||||||
BBVA Bancomer SA (Mexico) | 3,800,000 | 4,161,000 | ||||||
BNP Paribas SA (France) | 250,000 | 254,641 | ||||||
BPCE SA (France) | 200,000 | 206,555 | ||||||
Caterpillar Financial Services Corp | 220,000 | 247,546 | ||||||
CIT Group Inc | 400,000 | 398,000 | ||||||
Citigroup Inc | ||||||||
2.250% due 08/07/15 | 700,000 | 707,624 | ||||||
3.500% due 05/15/23 | 270,000 | 259,201 | ||||||
4.587% due 12/15/15 | 2,300,000 | 2,403,176 | ||||||
4.700% due 05/29/15 | 500,000 | 513,704 | ||||||
5.500% due 10/15/14 | 1,200,000 | 1,202,239 | ||||||
5.500% due 09/13/25 | 300,000 | 327,889 | ||||||
5.950% § ± | 300,000 | 300,281 | ||||||
6.125% due 11/21/17 | 1,100,000 | 1,241,909 | ||||||
6.675% due 09/13/43 | 130,000 | 159,901 | ||||||
8.500% due 05/22/19 | 100,000 | 125,145 |
Principal | | |||||||
Commonwealth Bank of Australia (Australia) | $100,000 | $111,764 | ||||||
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA (Netherlands) | ||||||||
4.625% due 12/01/23 | 440,000 | 456,819 | ||||||
5.750% due 12/01/43 | 250,000 | 284,940 | ||||||
11.000% § ± ~ | 370,000 | 490,250 | ||||||
Credit Agricole SA (France) | 710,000 | 820,405 | ||||||
Credit Suisse NY (Switzerland) | ||||||||
0.465% due 03/17/15 § | 400,000 | 400,005 | ||||||
0.643% due 12/07/15 § | 2,100,000 | 2,102,111 | ||||||
Daimler Finance North America LLC | ||||||||
1.300% due 07/31/15 ~ | 2,400,000 | 2,415,353 | ||||||
1.650% due 04/10/15 ~ | 900,000 | 905,360 | ||||||
2.300% due 01/09/15 ~ | 900,000 | 904,686 | ||||||
First Data Corp | ||||||||
11.750% due 08/15/21 | 300,000 | 348,750 | ||||||
12.625% due 01/15/21 | 300,000 | 360,000 | ||||||
Ford Motor Credit Co LLC | ||||||||
3.875% due 01/15/15 | 2,592,000 | 2,617,065 | ||||||
3.984% due 06/15/16 | 100,000 | 104,774 | ||||||
4.207% due 04/15/16 | 400,000 | 418,458 | ||||||
5.750% due 02/01/21 | 720,000 | 819,116 | ||||||
7.000% due 04/15/15 | 2,900,000 | 3,000,160 | ||||||
8.700% due 10/01/14 | 200,000 | 200,000 | ||||||
General Electric Capital Corp | ||||||||
3.150% due 09/07/22 | 570,000 | 568,834 | ||||||
6.000% due 08/07/19 | 460,000 | 537,174 | ||||||
6.875% due 01/10/39 | 450,000 | 606,874 | ||||||
General Motors Financial Co Inc | 330,000 | 337,838 | ||||||
HBOS PLC (United Kingdom) | 8,100,000 | 8,099,287 | ||||||
HSBC Bank USA NA | 300,000 | 410,121 | ||||||
HSBC Holdings PLC (United Kingdom) | ||||||||
4.250% due 03/14/24 | 300,000 | 304,921 | ||||||
6.375% due 12/29/49 § | 300,000 | 300,000 | ||||||
ICICI Bank Ltd (India) | ||||||||
4.750% due 11/25/16 ~ | 1,700,000 | 1,792,307 | ||||||
5.500% due 03/25/15 ~ | 600,000 | 612,763 | ||||||
ING Bank NV (Netherlands) | 450,000 | 496,686 | ||||||
Intesa Sanpaolo SPA (Italy) | 780,000 | 759,326 | ||||||
JPMorgan Chase & Co | ||||||||
3.375% due 05/01/23 | 290,000 | 278,182 | ||||||
3.625% due 05/13/24 | 1,060,000 | 1,059,614 | ||||||
3.700% due 01/20/15 | 300,000 | 302,988 | ||||||
4.500% due 01/24/22 | 410,000 | 440,071 | ||||||
JPMorgan Chase Bank NA | 780,000 | 872,755 | ||||||
M&T Bank Corp | 800,000 | 818,655 | ||||||
MetLife Inc | 230,000 | 254,509 | ||||||
Morgan Stanley | 600,000 | 652,101 | ||||||
Navient Corp | ||||||||
6.250% due 01/25/16 | 100,000 | 104,050 | ||||||
8.000% due 03/25/20 | 330,000 | 370,838 | ||||||
Nordea Bank AB (Sweden) | 600,000 | 645,320 | ||||||
Royal Bank of Scotland Group PLC (United Kingdom) | ||||||||
2.550% due 09/18/15 | 5,200,000 | 5,278,312 | ||||||
5.000% due 10/01/14 | 2,400,000 | 2,400,000 | ||||||
5.125% due 05/28/24 | 1,210,000 | 1,191,458 | ||||||
Royal Bank of Scotland NV (Netherlands) | 230,000 | 238,238 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-16
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal | | |||||||
Sberbank of Russia Via SB Capital SA (Luxembourg) | $2,100,000 | $2,143,701 | ||||||
Standard Chartered PLC (United Kingdom) | 860,000 | 911,788 | ||||||
State Bank of India (India) | 1,000,000 | 1,026,768 | ||||||
Sumitomo Mitsui Banking Corp (Japan) | 5,800,000 | 5,800,719 | ||||||
Teachers Insurance & Annuity Association of America | 200,000 | 258,532 | ||||||
Temasek Financial I Ltd (Singapore) | 350,000 | 336,975 | ||||||
The Goldman Sachs Group Inc | ||||||||
3.850% due 07/08/24 | 340,000 | 338,638 | ||||||
5.950% due 01/15/27 | 320,000 | 362,450 | ||||||
6.000% due 06/15/20 | 620,000 | 713,319 | ||||||
6.250% due 02/01/41 | 760,000 | 923,774 | ||||||
6.750% due 10/01/37 | 260,000 | 309,800 | ||||||
WEA Finance LLC | 360,000 | 359,871 | ||||||
Wells Fargo & Co | ||||||||
3.450% due 02/13/23 | 210,000 | 206,631 | ||||||
4.600% due 04/01/21 | 1,320,000 | 1,448,754 | ||||||
5.606% due 01/15/44 | 430,000 | 485,700 | ||||||
|
| |||||||
91,173,199 | ||||||||
|
| |||||||
Health Care - 0.6% | ||||||||
Amgen Inc | 150,000 | 149,160 | ||||||
Celgene Corp | 100,000 | 99,162 | ||||||
DaVita Healthcare Partners Inc | 330,000 | 324,844 | ||||||
Fresenius Medical Care U.S. Finance II Inc | 500,000 | 528,850 | ||||||
Gilead Sciences Inc | 340,000 | 346,981 | ||||||
GlaxoSmithKline Capital Inc | 250,000 | 322,964 | ||||||
GlaxoSmithKline Capital PLC (United Kingdom) | 350,000 | 343,782 | ||||||
HCA Inc | ||||||||
6.500% due 02/15/20 | 130,000 | 142,188 | ||||||
7.500% due 02/15/22 | 350,000 | 394,625 | ||||||
Humana Inc | ||||||||
3.150% due 12/01/22 | 80,000 | 78,252 | ||||||
4.625% due 12/01/42 | 110,000 | 108,136 | ||||||
Pfizer Inc | 200,000 | 283,386 | ||||||
Roche Holdings Inc | 130,000 | 150,835 | ||||||
UnitedHealth Group Inc | ||||||||
3.875% due 10/15/20 | 200,000 | 214,483 | ||||||
6.875% due 02/15/38 | 150,000 | 206,048 | ||||||
Wellpoint Inc | 400,000 | 395,864 | ||||||
Zoetis Inc | 100,000 | 97,998 | ||||||
|
| |||||||
4,187,558 | ||||||||
|
| |||||||
Industrials - 0.5% | ||||||||
CSC Holdings LLC | 520,000 | 555,854 | ||||||
Delta Air Lines Pass-Through Trust ‘A’ | 364,843 | 425,042 | ||||||
Eaton Corp | ||||||||
1.500% due 11/02/17 | 120,000 | 119,583 | ||||||
2.750% due 11/02/22 | 740,000 | 716,999 | ||||||
4.150% due 11/02/42 | 200,000 | 191,382 |
Principal | | |||||||
Florida East Coast Holdings Corp | $230,000 | $235,750 | ||||||
General Electric Co | 110,000 | 114,702 | ||||||
International Lease Finance Corp | 100,000 | 104,688 | ||||||
Raytheon Co | 160,000 | 164,376 | ||||||
United Airlines Pass-Through Trust | 53,962 | 60,880 | ||||||
United Technologies Corp | ||||||||
4.500% due 04/15/20 | 210,000 | 232,058 | ||||||
4.500% due 06/01/42 | 180,000 | 189,104 | ||||||
Waste Management Inc | 150,000 | 149,884 | ||||||
West Corp | 200,000 | 185,000 | ||||||
|
| |||||||
3,445,302 | ||||||||
|
| |||||||
Information Technology - 0.1% | ||||||||
Activision Blizzard Inc | 200,000 | 208,500 | ||||||
Apple Inc | 300,000 | 301,172 | ||||||
|
| |||||||
509,672 | ||||||||
|
| |||||||
Materials - 1.3% | ||||||||
Ardagh Packaging Finance PLC (Ireland) | 300,000 | 291,375 | ||||||
Barrick Gold Corp (Canada) | ||||||||
4.100% due 05/01/23 | 650,000 | 625,856 | ||||||
6.950% due 04/01/19 | 240,000 | 279,057 | ||||||
BHP Billiton Finance USA Ltd (Australia) | ||||||||
3.250% due 11/21/21 | 750,000 | 766,829 | ||||||
5.000% due 09/30/43 | 230,000 | 253,319 | ||||||
Celulosa Arauco y Constitucion SA (Chile) | 260,000 | 254,476 | ||||||
CSN Islands XI Corp (Cayman) | 700,000 | 740,250 | ||||||
Ecolab Inc | 100,000 | 108,530 | ||||||
FMG Resources Property Ltd (Australia) | ||||||||
6.875% due 04/01/22 ~ | 270,000 | 275,738 | ||||||
8.250% due 11/01/19 ~ | 200,000 | 207,500 | ||||||
Gerdau Holdings Inc | 300,000 | 339,000 | ||||||
GTL Trade Finance Inc (United Kingdom) | 600,000 | 678,000 | ||||||
Hexion U.S. Finance Corp | 300,000 | 303,000 | ||||||
Potash Corp of Saskatchewan Inc (Canada) | 100,000 | 111,405 | ||||||
Rio Tinto Finance USA Ltd (Australia) | 340,000 | 353,329 | ||||||
Southern Copper Corp | 600,000 | 673,008 | ||||||
Steel Dynamics Inc | 300,000 | 316,500 | ||||||
Vale Overseas Ltd (Cayman) | ||||||||
4.375% due 01/11/22 | 1,200,000 | 1,214,796 | ||||||
6.875% due 11/21/36 | 500,000 | 566,250 | ||||||
Vedanta Resources PLC (United Kingdom) | 100,000 | 115,000 | ||||||
|
| |||||||
8,473,218 | ||||||||
|
| |||||||
Telecommunication Services - 3.4% | ||||||||
America Movil Sab de CV (Mexico) | 400,000 | 439,724 | ||||||
AT&T Inc | ||||||||
3.900% due 03/11/24 | 400,000 | 407,943 | ||||||
4.350% due 06/15/45 | 230,000 | 212,266 | ||||||
5.500% due 02/01/18 | 350,000 | 391,783 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-17
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal | | |||||||
BellSouth Corp | $5,300,000 | $5,409,477 | ||||||
Deutsche Telekom International Finance BV (Netherlands) | 500,000 | 584,382 | ||||||
Intelsat Jackson Holdings SA (Luxembourg) | ||||||||
5.500% due 08/01/23 | 300,000 | 287,625 | ||||||
7.500% due 04/01/21 | 270,000 | 289,238 | ||||||
SBA Tower Trust | 2,700,000 | 2,750,796 | ||||||
Sprint Capital Corp | 300,000 | 328,875 | ||||||
Sprint Corp | 350,000 | 372,750 | ||||||
Telecom Italia Capital SA (Luxembourg) | 2,000,000 | 2,062,500 | ||||||
Telefonica Emisiones SAU (Spain) | 200,000 | 220,153 | ||||||
Verizon Communications Inc | ||||||||
2.500% due 09/15/16 | 4,100,000 | 4,208,687 | ||||||
4.150% due 03/15/24 | 1,500,000 | 1,549,259 | ||||||
6.400% due 09/15/33 | 900,000 | 1,097,040 | ||||||
6.550% due 09/15/43 | 1,190,000 | 1,488,935 | ||||||
Windstream Corp | 500,000 | 515,000 | ||||||
|
| |||||||
22,616,433 | ||||||||
|
| |||||||
Utilities - 0.6% | ||||||||
AES Corp | 250,000 | 288,125 | ||||||
Berkshire Hathaway Energy Co | 300,000 | 389,190 | ||||||
Dominion Resources Inc | 114,000 | 129,021 | ||||||
Entergy Corp | 500,000 | 512,216 | ||||||
FirstEnergy Corp | ||||||||
4.250% due 03/15/23 | 500,000 | 497,563 | ||||||
7.375% due 11/15/31 | 1,100,000 | 1,303,756 | ||||||
Pacific Gas & Electric Co | 510,000 | 631,331 | ||||||
Virginia Electric and Power Co | 160,000 | 213,225 | ||||||
|
| |||||||
3,964,427 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes | 172,403,522 | |||||||
|
| |||||||
SENIOR LOAN NOTES - 0.3% | ||||||||
Consumer Discretionary - 0.1% |
| |||||||
Chrysler Group LLC Tranche B | ||||||||
3.500% due 05/24/17 § | 198,454 | 197,244 | ||||||
due 05/24/17 µ | 600,000 | 596,344 | ||||||
|
| |||||||
793,588 | ||||||||
|
| |||||||
Health Care - 0.2% | ||||||||
HCA Inc Tranche B-5 | 300,000 | 298,375 | ||||||
Biomet Inc Term B | 800,000 | 795,875 | ||||||
|
| |||||||
1,094,250 | ||||||||
|
| |||||||
Total Senior Loan Notes | 1,887,838 | |||||||
|
|
Principal | | |||||||
MORTGAGE-BACKED SECURITIES - 39.1% | ||||||||
Collateralized Mortgage Obligations - Commercial - 1.1% |
| |||||||
Bear Stearns Commercial Mortgage Securities Trust | $200,000 | $219,929 | ||||||
Credit Suisse Commercial Mortgage Trust | 777,818 | 828,757 | ||||||
CSMC Trust | ||||||||
3.953% due 09/15/37 " ~ | 850,000 | 881,197 | ||||||
4.373% due 09/15/37 " ~ | 370,000 | 335,460 | ||||||
GS Mortgage Securities Trust | 1,540,000 | 1,477,277 | ||||||
JPMBB Commercial Mortgage Securities Trust | 360,000 | 363,505 | ||||||
LB-UBS Commercial Mortgage Trust | 451,694 | 500,378 | ||||||
Morgan Stanley Capital I Trust | 1,425,712 | 1,513,793 | ||||||
Silenus European Loan Conduit Ltd (Ireland) | EUR 15,529 | 19,399 | ||||||
Wachovia Bank Commercial Mortgage Trust | $600,000 | 647,354 | ||||||
Wells Fargo Commercial Mortgage Trust | 290,000 | 308,081 | ||||||
|
| |||||||
7,095,130 | ||||||||
|
| |||||||
Collateralized Mortgage Obligations - Residential - 4.6% |
| |||||||
Alternative Loan Trust | ||||||||
0.344% due 03/20/47 " § | 2,726,422 | 2,185,835 | ||||||
2.562% due 06/25/37 " § | 345,873 | 289,496 | ||||||
Arran Residential Mortgages Funding PLC (United Kingdom) | EUR 575,115 | 733,995 | ||||||
Banc of America Funding | $2,760,000 | 1,472,368 | ||||||
Banc of America Funding Ltd | 1,675,943 | 1,661,530 | ||||||
Banc of America Funding Trust | 73,023 | 75,150 | ||||||
Banc of America Mortgage Trust | 43,394 | 43,855 | ||||||
BCAP LLC Trust | 83,458 | 82,473 | ||||||
Bear Stearns Adjustable Rate Mortgage Trust | ||||||||
2.250% due 08/25/35 " § | 33,766 | 34,346 | ||||||
2.430% due 10/25/35 " § | 259,768 | 258,231 | ||||||
2.441% due 08/25/33 " § | 93,978 | 96,317 | ||||||
2.528% due 03/25/35 " § | 57,977 | 58,778 | ||||||
2.656% due 01/25/35 " § | 1,076,326 | 1,068,864 | ||||||
Bear Stearns Alt-A Trust | ||||||||
2.555% due 05/25/35 " § | 48,641 | 47,796 | ||||||
2.583% due 11/25/36 " § | 86,422 | 60,036 | ||||||
2.617% due 09/25/35 " § | 59,754 | 52,351 | ||||||
Chase Mortgage Finance Trust | 191,610 | 175,795 | ||||||
Chevy Chase Funding LLC | 51,017 | 47,013 | ||||||
Citigroup Mortgage Loan Trust | 2,000,000 | 2,067,150 | ||||||
Citigroup Mortgage Loan Trust Inc | ||||||||
2.280% due 09/25/35 " § | 40,813 | 41,105 | ||||||
2.510% due 10/25/35 " § | 78,240 | 78,325 | ||||||
Countrywide Home Loan Mortgage Pass-Through Trust | 25,217 | 24,243 | ||||||
Credit Suisse First Boston Mortgage Securities Corp | ||||||||
0.798% due 03/25/32 " § ~ | 27,277 | 25,863 | ||||||
6.000% due 11/25/35 " W | 99,632 | 84,349 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-18
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal | | |||||||
Downey Saving & Loan Association Mortgage Loan Trust | $246,204 | $65,431 | ||||||
Fannie Mae | ||||||||
0.355% due 10/27/37 " § | 3,400,000 | 3,393,470 | ||||||
0.465% due 04/25/37 " § | 75,026 | 75,231 | ||||||
0.605% due 09/25/35 " § | 187,523 | 188,956 | ||||||
1.625% due 11/25/23 " § | 132,280 | 137,105 | ||||||
Fannie Mae Connecticut Avenue Securities | 1,500,000 | 1,411,988 | ||||||
Freddie Mac | ||||||||
1.318% due 10/25/44 " § | 36,573 | 37,892 | ||||||
1.518% due 07/25/44 " § | 189,938 | 196,894 | ||||||
8.000% due 04/15/30 " | 164,783 | 192,348 | ||||||
Freddie Mac Structured Agency Credit Risk Debt Notes | ||||||||
4.157% due 08/25/24 " § | 540,000 | 539,683 | ||||||
4.257% due 08/25/24 " § | 760,000 | 768,605 | ||||||
Granite Master Issuer PLC (United Kingdom) | ||||||||
0.227% due 12/20/54 " § ~ | EUR 335,419 | 422,594 | ||||||
0.287% due 12/20/54 " § ~ | 539,550 | 680,256 | ||||||
0.414% due 12/20/54 " § | $268,100 | 267,483 | ||||||
Granite Mortgages PLC (United Kingdom) | ||||||||
0.581% due 01/20/44 " § ~ | EUR 15,579 | 19,660 | ||||||
0.934% due 09/20/44 " § ~ | GBP 83,764 | 135,617 | ||||||
0.936% due 01/20/44 " § ~ | 15,766 | 25,536 | ||||||
HarborView Mortgage Loan Trust | ||||||||
0.323% due 12/19/36 " § W | $484,254 | 334,913 | ||||||
0.343% due 01/19/38 " § | 159,846 | 137,640 | ||||||
0.373% due 05/19/35 " § | 30,586 | 26,377 | ||||||
JPMorgan Mortgage Trust | ||||||||
2.646% due 02/25/35 " § | 13,899 | 13,820 | ||||||
5.235% due 07/25/35 " § | 153,875 | 156,261 | ||||||
5.750% due 01/25/36 " W | 34,011 | 31,863 | ||||||
Mellon Residential Funding Corp Mortgage Pass-Through Trust | 6,378 | 6,268 | ||||||
Merrill Lynch Mortgage Investors Trust | ||||||||
0.365% due 02/25/36 " § | 39,182 | 36,338 | ||||||
2.173% due 11/25/35 " § | 2,485,825 | 2,475,737 | ||||||
Morgan Stanley Mortgage Loan Trust | 54,931 | 55,726 | ||||||
Nomura Resecuritization | 2,000,000 | 2,038,720 | ||||||
Prime Mortgage Trust | 2,230,042 | 2,246,594 | ||||||
Reperforming Loan REMIC Trust | 84,172 | 75,959 | ||||||
Residential Accredit Loans Inc Trust | ||||||||
0.335% due 06/25/46 " § | 83,343 | 38,364 | ||||||
6.000% due 06/25/36 " W | 198,364 | 161,653 | ||||||
Residential Asset Securitization Trust | 3,611 | 3,594 | ||||||
Structured Asset Mortgage Investments II Trust | 186,032 | 140,211 | ||||||
Structured Asset Securities Corp Mortgage Pass-Through Certificates | ||||||||
2.397% due 08/25/32 " § | 36,638 | 36,347 | ||||||
2.604% due 10/28/35 " § ~ | 33,672 | 32,035 | ||||||
Washington Mutual Mortgage Pass-Thru Certificates Trust | ||||||||
0.465% due 01/25/45 " § | 21,313 | 20,498 | ||||||
0.475% due 01/25/45 " § | 21,651 | 20,989 | ||||||
1.515% due 08/25/42 " § | 3,404 | 3,304 | ||||||
1.926% due 02/27/34 " § | 5,563 | 5,524 | ||||||
2.168% due 09/25/46 " § | 79,117 | 74,592 | ||||||
4.579% due 02/25/37 " § W | 386,156 | 358,144 |
Principal | | |||||||
Wells Fargo Mortgage-Backed Securities Trust | ||||||||
2.610% due 04/25/36 " § W | $56,915 | $55,987 | ||||||
2.612% due 12/25/34 " § | 65,484 | 66,527 | ||||||
2.615% due 03/25/36 " § W | 496,238 | 481,924 | ||||||
2.615% due 04/25/35 " § | 1,866,675 | 1,947,907 | ||||||
|
| |||||||
30,407,829 | ||||||||
|
| |||||||
Fannie Mae - 30.1% | ||||||||
1.318% due 10/01/44 " § | 30,003 | 30,730 | ||||||
2.168% due 09/01/35 " § | 152,275 | 162,117 | ||||||
2.310% due 08/01/22 " | 500,000 | 488,866 | ||||||
2.362% due 12/01/35 " § | 21,355 | 22,542 | ||||||
2.467% due 11/01/32 " § | 114,643 | 120,838 | ||||||
2.485% due 11/01/34 " § | 102,531 | 110,213 | ||||||
2.500% due 10/01/29 " | 2,000,000 | 2,011,406 | ||||||
3.000% due 09/01/21-10/01/29 " | 25,493,275 | 26,324,050 | ||||||
3.500% due 10/01/29-10/01/44 " | 49,000,000 | 51,125,640 | ||||||
4.000% due 08/01/18-10/01/44 " | 34,040,216 | 35,934,300 | ||||||
4.381% due 12/01/36 " § | 11,413 | 12,150 | ||||||
4.500% due 07/01/18-11/13/44 " | 34,713,320 | 37,384,799 | ||||||
5.000% due 02/01/25-11/13/44 " | 24,779,301 | 27,338,516 | ||||||
5.500% due 12/01/20-10/14/44 " | 8,648,146 | 9,636,162 | ||||||
6.000% due 09/01/22-05/01/41 " | 6,410,361 | 7,259,074 | ||||||
6.500% due 03/01/17 " | 11,303 | 11,848 | ||||||
|
| |||||||
197,973,251 | ||||||||
|
| |||||||
Freddie Mac - 0.4% | ||||||||
1.983% due 09/01/35 " § | 20,293 | 21,232 | ||||||
2.221% due 06/01/35 " § | 162,776 | 173,109 | ||||||
2.375% due 11/01/31-04/01/32 " § | 23,058 | 24,380 | ||||||
2.498% due 09/01/35 " § | 94,105 | 101,148 | ||||||
5.500% due 03/01/23-05/01/40 " | 1,941,735 | 2,162,493 | ||||||
6.000% due 12/01/22-03/01/23 " | 52,797 | 59,492 | ||||||
|
| |||||||
2,541,854 | ||||||||
|
| |||||||
Government National Mortgage Association - 2.9% |
| |||||||
3.500% due 10/01/44 " | 8,000,000 | 8,268,125 | ||||||
4.000% due 10/01/44 " | 8,000,000 | 8,479,375 | ||||||
5.000% due 10/15/38-04/15/39 " | 2,001,523 | 2,209,628 | ||||||
|
| |||||||
18,957,128 | ||||||||
|
| |||||||
Total Mortgage-Backed Securities | 256,975,192 | |||||||
|
| |||||||
ASSET-BACKED SECURITIES - 7.8% | ||||||||
Ally Auto Receivables Trust | 4,900,000 | 4,901,847 | ||||||
Argent Securities Inc | 1,145,639 | 1,067,222 | ||||||
Asset Backed Funding Certificates Trust | 92,797 | 87,393 | ||||||
Basic Asset Backed Securities Trust | 2,000,000 | 1,746,826 | ||||||
Bear Stearns Asset Backed Securities I Trust | 423,343 | 399,102 | ||||||
Bear Stearns Asset Backed Securities Trust | 119,451 | 117,436 | ||||||
CIT Mortgage Loan Trust | 1,273,462 | 1,273,860 | ||||||
Citibank Omni Master Trust | 4,800,000 | 4,827,334 | ||||||
Citigroup Mortgage Loan Trust | 3,700,000 | 3,317,202 | ||||||
Countrywide Asset-Backed Certificates | ||||||||
0.255% due 08/25/37 " § | 1,370,789 | 1,361,056 | ||||||
0.495% due 04/25/36 " § | 2,450,000 | 2,247,929 | ||||||
0.505% due 05/25/46 " § ~ | 1,971,792 | 1,889,044 | ||||||
FFMLT Trust | 5,200,000 | 4,875,463 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-19
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal | | |||||||
Halcyon Structured Asset Management Ltd CLO (Cayman) | $760,182 | $757,135 | ||||||
Hillmark Funding Ltd (Cayman) | 908,677 | 896,592 | ||||||
HSBC Home Equity Loan Trust | 276,078 | 274,552 | ||||||
Long Beach Mortgage Loan Trust | 18,554 | 17,009 | ||||||
Mastr Asset Backed Securities Trust | 6,200,000 | 5,831,869 | ||||||
Park Place Securities Inc | 87,758 | 87,352 | ||||||
Santander Drive Auto Receivables Trust | 5,300,000 | 5,300,660 | ||||||
Securitized Asset-Backed Receivables LLC Trust | 114,047 | 82,842 | ||||||
SMB Private Education Loan Trust | ||||||||
1.304% due 05/15/26 " § ~ | 2,000,000 | 1,999,977 | ||||||
1.654% due 04/15/32 " § ~ | 550,000 | 549,995 | ||||||
3.050% due 05/15/26 " ~ | 2,200,000 | 2,206,351 | ||||||
4.000% due 09/15/42 " ~ | 400,000 | 376,663 | ||||||
Structured Asset Investment Loan Trust | 1,200,000 | 1,137,522 | ||||||
Toyota Auto Receivables Owner Trust | 3,100,000 | 3,097,111 | ||||||
Wood Street BV CLO (Netherlands) | EUR 232,244 | 291,788 | ||||||
|
| |||||||
Total Asset-Backed Securities | 51,019,132 | |||||||
|
| |||||||
U.S. GOVERNMENT AGENCY ISSUES - 0.4% |
| |||||||
Fannie Mae | ||||||||
1.125% due 04/27/17 ‡ | $182,000 | 182,968 | ||||||
5.000% due 05/11/17 ‡ | 169,000 | 186,633 | ||||||
Freddie Mac | ||||||||
1.000% due 03/08/17 ‡ | 2,635,000 | 2,642,836 | ||||||
|
| |||||||
Total U.S. Government Agency Issues | 3,012,437 | |||||||
|
| |||||||
U.S. TREASURY OBLIGATIONS - 3.0% |
| |||||||
U.S. Treasury Inflation Protected Securities - 0.3% |
| |||||||
0.125% due 07/15/24 ^ | 662,244 | 636,582 | ||||||
0.625% due 01/15/24 ^ | 1,133,421 | 1,140,416 | ||||||
|
| |||||||
1,776,998 | ||||||||
|
| |||||||
U.S. Treasury Notes - 1.6% | ||||||||
1.625% due 07/31/19 | 2,240,000 | 2,226,788 | ||||||
2.125% due 09/30/21 | 2,220,000 | 2,206,644 | ||||||
2.375% due 08/15/24 | 1,840,000 | 1,819,444 | ||||||
3.125% due 08/15/44 | 4,380,000 | 4,310,880 | ||||||
|
| |||||||
10,563,756 | ||||||||
|
| |||||||
U.S. Treasury Strips - 1.1% | ||||||||
3.240% due 05/15/44 | 20,000,000 | 7,472,040 | ||||||
|
| |||||||
Total U.S. Treasury Obligations | 19,812,794 | |||||||
|
| |||||||
FOREIGN GOVERNMENT BONDS & NOTES - 9.5% |
| |||||||
Autonomous Community of Valencia Spain (Spain) | EUR 100,000 | 129,970 | ||||||
Banco Nacional de Desenvolvimento Economico e Social (Brazil) | 100,000 | 133,556 |
Principal | | |||||||
Brazil Notas do Tesouro Nacional Series B (Brazil) | BRL 1,000,000 | $990,672 | ||||||
Brazil Notas do Tesouro Nacional Series F (Brazil) | 6,842,000 | 2,750,136 | ||||||
Brazilian Government (Brazil) | $260,000 | 257,725 | ||||||
Colombia Government (Colombia) | 400,000 | 442,000 | ||||||
Indonesia Government (Indonesia) | ||||||||
3.750% due 04/25/22 | 200,000 | 194,000 | ||||||
4.875% due 05/05/21 | 500,000 | 522,500 | ||||||
Italy Buoni Poliennali del Tesoro (Italy) | ||||||||
1.150% due 05/15/17 | EUR 2,900,000 | 3,719,548 | ||||||
2.250% due 05/15/16 | 2,300,000 | 2,993,721 | ||||||
3.750% due 04/15/16 | 200,000 | 265,769 | ||||||
4.750% due 09/15/16 | 3,600,000 | 4,928,839 | ||||||
4.750% due 05/01/17 | 200,000 | 279,951 | ||||||
4.750% due 06/01/17 | 2,000,000 | 2,805,110 | ||||||
Italy Certificati di Credito del Tesoro (Italy) | 3,000,000 | 3,766,057 | ||||||
Mexican Bonos (Mexico) | ||||||||
6.500% due 06/09/22 | MXN 41,980,000 | 3,243,761 | ||||||
7.750% due 11/13/42 | 52,000,000 | 4,251,699 | ||||||
Mexico Government (Mexico) | $1,230,000 | 1,369,605 | ||||||
Poland Government (Poland) | 850,000 | 877,625 | ||||||
Province of Ontario (Canada) | ||||||||
1.650% due 09/27/19 | 200,000 | 195,957 | ||||||
3.000% due 07/16/18 | 100,000 | 104,865 | ||||||
3.150% due 06/02/22 | CAD 900,000 | 832,577 | ||||||
5.500% due 06/02/18 | 100,000 | 101,390 | ||||||
Province of Quebec (Canada) | $600,000 | 639,806 | ||||||
Russian Foreign (Russia) | 753,500 | 845,977 | ||||||
South Africa Government (South Africa) | 650,000 | 716,950 | ||||||
Spain Government (Spain) | ||||||||
2.100% due 04/30/17 | EUR 1,300,000 | 1,711,485 | ||||||
3.150% due 01/31/16 | 1,200,000 | 1,574,703 | ||||||
3.250% due 04/30/16 | 100,000 | 132,261 | ||||||
3.300% due 07/30/16 | 7,300,000 | 9,727,893 | ||||||
3.750% due 10/31/15 | 800,000 | 1,049,105 | ||||||
3.800% due 01/31/17 | 1,900,000 | 2,591,893 | ||||||
4.250% due 10/31/16 | 3,500,000 | 4,780,279 | ||||||
5.500% due 07/30/17 | 1,400,000 | 2,016,794 | ||||||
Turkey Government (Turkey) | ||||||||
5.625% due 03/30/21 | $450,000 | 480,375 | ||||||
5.750% due 03/22/24 | 600,000 | 640,020 | ||||||
6.625% due 02/17/45 | 350,000 | 393,313 | ||||||
|
| |||||||
Total Foreign Government Bonds & Notes | 62,457,887 | |||||||
|
| |||||||
MUNICIPAL BONDS - 2.3% | ||||||||
American Municipal Power Inc OH ‘B’ | 1,000,000 | 1,556,660 | ||||||
Buckeye Tobacco Settlement Financing Authority OH ‘A2’ | 800,000 | 626,368 | ||||||
City of North Las Vegas NV | 900,000 | 804,114 | ||||||
County of Clark Department of Aviation NV ‘C’ | 200,000 | 275,254 | ||||||
New Jersey Economic Development Authority ‘B’ | 4,100,000 | 3,600,087 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-20
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal | | |||||||
North Carolina Turnpike Authority ‘B’ | $100,000 | $112,789 | ||||||
Southern California Public Power Authority | 1,600,000 | 1,884,512 | ||||||
State of California | ||||||||
7.500% due 04/01/34 | 100,000 | 142,768 | ||||||
7.600% due 11/01/40 | 1,400,000 | 2,071,566 | ||||||
Tobacco Settlement Finance Authority of WV ‘A’ | 780,000 | 663,733 | ||||||
University of Arizona ‘A’ | 2,700,000 | 3,080,565 | ||||||
University of California | 500,000 | 555,015 | ||||||
|
| |||||||
Total Municipal Bonds | 15,373,431 | |||||||
|
| |||||||
PURCHASED OPTIONS - 0.0% | ||||||||
(See Note (h) in Notes to Schedule of Investments) |
| 5,669 | ||||||
|
| |||||||
SHORT-TERM INVESTMENTS - 39.3% | ||||||||
Certificates of Deposit - 0.8% | ||||||||
Bank of Nova Scotia | CAD 5,800,000 | 5,155,602 | ||||||
|
| |||||||
Commercial Paper - 9.2% | ||||||||
BAT International Finance PLC | $3,500,000 | 3,499,549 | ||||||
Cameron International Corp | 3,600,000 | 3,599,784 | ||||||
Canadian Natural Resources | 2,100,000 | 2,099,559 | ||||||
Commonwealth Edison | ||||||||
0.270% due 10/16/14 | 3,500,000 | 3,499,606 | ||||||
0.270% due 10/24/14 | 400,000 | 399,931 | ||||||
Conagra Foods Inc | 1,800,000 | 1,799,880 | ||||||
Cox Enterprises | ||||||||
0.250% due 10/07/14 | 700,000 | 699,971 | ||||||
0.260% due 10/01/14 | 2,900,000 | 2,900,000 | ||||||
Enbridge Energy Partners | 2,200,000 | 2,199,571 | ||||||
Ford Motor Credit Co | 1,400,000 | 1,396,644 | ||||||
Glencore Funding LLC | ||||||||
0.350% due 10/01/14 | 2,300,000 | 2,300,000 | ||||||
0.380% due 10/20/14 | 1,200,000 | 1,199,759 | ||||||
Hitachi America Capital | 3,500,000 | 3,499,564 | ||||||
Kansas City Railway | 1,500,000 | 1,499,697 | ||||||
Macquarie Bank Ltd | 3,000,000 | 3,000,066 | ||||||
Mohawk Industries | ||||||||
0.520% due 10/01/14 | 2,600,000 | 2,600,000 | ||||||
0.570% due 10/14/14 | 1,000,000 | 999,794 | ||||||
NBCUniversal Enterprise Inc | 3,600,000 | 3,599,775 | ||||||
Nisource Finance | 2,800,000 | 2,799,566 | ||||||
Pearson Holdings Inc | ||||||||
0.270% due 10/01/14 | 2,600,000 | 2,600,000 | ||||||
0.270% due 10/10/14 | 1,000,000 | 999,933 | ||||||
Tesco Treasury Services | 3,200,000 | 3,176,317 |
Principal | | |||||||
Time Warner Cable Inc | $2,100,000 | $2,099,768 | ||||||
Vodafone Group | ||||||||
0.550% due 04/01/15 | 6,000,000 | 5,987,708 | ||||||
0.600% due 06/29/15 | 400,000 | 398,549 | ||||||
VW Credit Inc | 1,500,000 | 1,499,708 | ||||||
|
| |||||||
60,354,699 | ||||||||
|
| |||||||
Repurchase Agreements - 5.6% | ||||||||
Barclays PLC | 17,000,000 | 17,000,000 | ||||||
Barclays PLC | 19,600,000 | 19,600,000 | ||||||
|
| |||||||
36,600,000 | ||||||||
|
| |||||||
Shares | ||||||||
Money Market Fund - 23.7% | ||||||||
BlackRock Liquidity Funds Treasury | 156,158,534 | 156,158,534 | ||||||
|
| |||||||
Total Short-Term Investments | 258,268,835 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 127.9% | 841,216,737 | |||||||
SECURITIES SOLD SHORT - (0.1%) | ||||||||
(See Note (d) in Notes to Schedule of Investments) (Proceeds $1,048,828) |
| (1,050,859 | ) | |||||
OTHER ASSETS & LIABILITIES, NET - (27.8%) |
| (182,618,862 | ) | |||||
|
| |||||||
NET ASSETS - 100.0% | $657,547,016 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Short-Term Investments | 39.3% | |||
Mortgage-Backed Securities | 39.1% | |||
Corporate Bonds & Notes | 26.2% | |||
Foreign Government Bonds & Notes | 9.5% | |||
Asset-Backed Securities | 7.8% | |||
U.S. Treasury Obligations | 3.0% | |||
Others (each less than 3.0%) | 3.0% | |||
|
| |||
127.9% | ||||
Securities Sold Short | (0.1% | ) | ||
Other Assets & Liabilities, Net | (27.8% | ) | ||
|
| |||
100.0% | ||||
|
|
(b) | Investments reflect the stated coupon rate or for discounted investments or zero coupon bonds, the annualized effective yield on the date of purchase. |
(c) | Investments with a total aggregate value of $1,657,106 or 0.3% of the fund’s net assets were in default as of September 30, 2014. |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-21
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
(d) | Securities sold short outstanding as of September 30, 2014 were as follows: |
Description | Principal Amount | Value | ||||||
Mortgage-Backed Securities – (0.1%) | ||||||||
Fannie Mae | ($1,000,000 | ) | ($1,050,859 | ) | ||||
|
| |||||||
Total Securities Sold Short | ($1,050,859 | ) | ||||||
|
|
(e) | Open futures contracts outstanding as of September 30, 2014 were as follows: |
Unrealized | ||||||||
Number of | Appreciation | |||||||
Long Futures Outstanding | Contracts | (Depreciation) | ||||||
Euro-BTP (12/14) | 9 | $7,029 | ||||||
Eurodollar (12/15) | 738 | (268,151 | ) | |||||
Eurodollar (03/16) | 343 | (142,801 | ) | |||||
Eurodollar (06/16) | 67 | (5,005 | ) | |||||
U.S. Treasury 5-Year Notes (12/14) | 76 | (7,185 | ) | |||||
U.S. Treasury 10-Year Notes (12/14) | 593 | (394,554 | ) | |||||
U.S. Treasury 30-Year Bonds (12/14) | 77 | (107,901 | ) | |||||
U.S. Treasury Ultra Bonds (12/14) | 120 | 3,881 | ||||||
|
| |||||||
(914,687 | ) | |||||||
|
| |||||||
Short Futures Outstanding | ||||||||
Euro-Bund (12/14) | 11 | (4,217 | ) | |||||
Euro FX (12/14) | 53 | 206,653 | ||||||
|
| |||||||
202,436 | ||||||||
|
| |||||||
Total Futures Contracts | ($712,251 | ) | ||||||
|
|
(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, 2014 was $33,757 at a weighted average interest rate of 0.000%. |
(g) | Forward foreign currency contracts outstanding as of September 30, 2014 were as follows: |
Unrealized | ||||||||||||||||||
Currency Purchased | Currency Sold | Expiration | Counterparty | Appreciation (Depreciation) | ||||||||||||||
BRL | 1,263,700 | USD | 537,745 | 10/14 | UBS | ($21,772 | ) | |||||||||||
EUR | 12,361,000 | USD | 15,939,665 | 11/14 | BRC | (321,504 | ) | |||||||||||
EUR | 1,461,000 | USD | 1,915,323 | 11/14 | CIT | (69,345 | ) | |||||||||||
EUR | 1,143,000 | USD | 1,486,616 | 11/14 | GSC | (42,432 | ) | |||||||||||
GBP | 3,026,000 | USD | 4,934,417 | 12/14 | CIT | (31,933 | ) | |||||||||||
JPY | 594,148,884 | USD | 5,458,419 | 10/14 | JPM | (40,979 | ) | |||||||||||
MXN | 28,098,530 | USD | 2,131,379 | 12/14 | CIT | (50,648 | ) | |||||||||||
MXN | 15,576,960 | USD | 1,188,673 | 12/14 | JPM | (35,180 | ) | |||||||||||
MXN | 31,054,830 | USD | 2,323,298 | 02/15 | JPM | (31,450 | ) | |||||||||||
USD | 1,514,080 | AUD | 1,741,000 | 11/14 | GSC | — | ||||||||||||
USD | 552,788 | BRL | 1,263,700 | 10/14 | UBS | 36,815 | ||||||||||||
USD | 532,982 | BRL | 1,263,700 | 11/14 | UBS | 21,831 | ||||||||||||
USD | 930,150 | CAD | 1,030,000 | 10/14 | GSC | 10,849 | ||||||||||||
USD | 5,244,073 | CAD | 5,744,436 | 02/15 | CIT | 131,325 | ||||||||||||
USD | 29,001,677 | EUR | 21,647,000 | 11/14 | CIT | 1,650,623 | ||||||||||||
USD | 5,152,579 | EUR | 4,088,000 | 11/14 | GSC | (12,622 | ) | |||||||||||
USD | 44,456,346 | EUR | 33,370,000 | 11/14 | GSC | 2,293,243 | ||||||||||||
USD | 133,793 | EUR | 100,000 | 08/15 | DUB | 7,041 | ||||||||||||
USD | 5,278,916 | GBP | 3,282,000 | 12/14 | BRC | (38,318 | ) | |||||||||||
USD | 5,265,768 | JPY | 551,848,884 | 10/14 | GSC | 234,019 | ||||||||||||
USD | 398,624 | JPY | 42,300,000 | 10/14 | JPM | 12,934 | ||||||||||||
USD | 4,302,644 | JPY | 472,000,000 | 11/14 | BRC | (2,071 | ) | |||||||||||
USD | 5,459,723 | JPY | 594,148,884 | 11/14 | JPM | 40,991 | ||||||||||||
USD | 1,000,000 | JPY | 101,968,500 | 08/15 | HSB | 66,338 | ||||||||||||
USD | 2,349,309 | MXN | 31,391,384 | 12/14 | BRC | 24,739 | ||||||||||||
USD | 211,341 | MXN | 2,816,000 | 12/14 | DUB | 2,813 | ||||||||||||
|
| |||||||||||||||||
Total Forward Foreign Currency Contracts |
| $3,835,307 | ||||||||||||||||
|
|
(h) | Purchased options outstanding as of September 31, 2014 were as follows: |
Options on Futures
Description | Exercise Price | Expiration Date | Exchange | Number of Contracts | Cost | Value | ||||||||||||||||
Call - U.S. Treasury 30-year Bonds (11/14) | $138.00 | 10/24/14 | CME | 2 | $1,600 | $2,156 | ||||||||||||||||
|
|
|
| |||||||||||||||||||
Put - JPY/USD | 94.00 | 10/03/15 | CME | 1 | 416 | 3,513 | ||||||||||||||||
|
|
|
| |||||||||||||||||||
2,016 | 5,669 | |||||||||||||||||||||
|
|
|
| |||||||||||||||||||
Total Purchased Options | $2,016 | $5,669 | ||||||||||||||||||||
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-22
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
(i) | Transactions in written options for the six-month period ended September 30, 2014 were as follows: |
Number of Contracts | Notional Amount in EUR | Notional Amount in $ | Premium | |||||||||||||
Outstanding, March 31, 2014 | — | — | 113,600,000 | $729,142 | ||||||||||||
Call Options Written | 450 | 6,200,000 | 42,900,000 | 365,504 | ||||||||||||
Put Options Written | 233 | 6,200,000 | 44,600,000 | 488,138 | ||||||||||||
Call Options Closed | (45 | ) | — | (21,000,000 | ) | (137,560 | ) | |||||||||
Put Options Closed | (39 | ) | — | — | (29,389 | ) | ||||||||||
Call Options Expired | (194 | ) | — | (64,800,000 | ) | (248,228 | ) | |||||||||
Put Options Expired | (109 | ) | — | (41,600,000 | ) | (563,461 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Outstanding, September 30, 2014 | 296 | 12,400,000 | 73,700,000 | $604,146 | ||||||||||||
|
|
|
|
|
|
|
|
(j) | Premiums received and value of written options outstanding as of September 30, 2014 were as follows: |
Credit Default Swaptions on Credit Indices – Sell Protection (1)
Description | Exercise Rate | Expiration Date | Counter- party | Notional Amount (2) | Premium | Value (3) | ||||||||||||||||
Put - CDX IG 22 5Y | 0.850% | 12/17/14 | CIT | $1,000,000 | $1,175 | ($1,309 | ) | |||||||||||||||
Put - CDX IG 22 5Y | 0.900% | 12/17/14 | CIT | 400,000 | 460 | (460 | ) | |||||||||||||||
Put - CDX IG 22 5Y | 0.950% | 12/17/14 | CIT | 700,000 | 875 | (576 | ) | |||||||||||||||
|
|
|
| |||||||||||||||||||
$2,510 | ($2,345 | ) | ||||||||||||||||||||
|
|
|
|
(1) | If the fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swaption agreement, the fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swaption 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 swaption less the recovery value of the referenced obligation or underlying investments comprising the referenced index. The fund is only obligated if the swaption is exercised. |
(2) | 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 swaption agreement. |
(3) | The quoted market prices and resulting values for credit default swaption agreements on credit indices serve as an indicator of the current status of the payment/ performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative had the notional amount of the swaption agreement been closed/sold as of period end. Increasing values, in absolute terms when compared to the notional amount of the swaption, 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. |
Foreign Currency Options
Description | Exercise Price | Expiration Date | Counter- party | Notional Amount | Premium | Value | ||||||||||||||||
Call - BRL versus USD | BRL 2.58 | 10/31/14 | JPM | $300,000 | $2,895 | ($2,852 | ) | |||||||||||||||
Call - EUR versus USD | $1.30 | 11/28/14 | BOA | 3,000,000 | 19,860 | (68 | ) | |||||||||||||||
|
|
|
| |||||||||||||||||||
22,755 | (2,920 | ) | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||
Put - JPY versus USD | JPY 97.00 | 11/10/14 | BOA | 600,000 | 828 | (266 | ) | |||||||||||||||
Put - JPY versus USD | 97.00 | 11/10/14 | BRC | 300,000 | 375 | (133 | ) | |||||||||||||||
Put - JPY versus USD | 98.00 | 11/10/14 | UBS | 300,000 | 630 | (133 | ) | |||||||||||||||
Put - JPY versus USD | 99.00 | 09/30/15 | CIT | 600,000 | 4,931 | (4,931 | ) | |||||||||||||||
|
|
|
| |||||||||||||||||||
6,764 | (5,463 | ) | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||
$29,519 | ($8,383 | ) | ||||||||||||||||||||
|
|
|
|
Inflation Floor/Cap Options
Description | Initial Index | Floating Rate | Expiration Date | Counter- party | Notional Amount | Premium | Value | |||||||||||||||||
Floor - U.S. CPI Urban Consumers NSA | 0.00 | Maximum of ((1 + 0.00%)10 - Inflation Adjustment) or $0 | 03/12/20 | CIT | $1,200,000 | $10,320 | ($294 | ) | ||||||||||||||||
Floor - U.S. CPI Urban Consumers NSA | 0.00 | Maximum of ((1 + 0.00%)10 - Inflation Adjustment) or $0 | 09/29/20 | CIT | 600,000 | 7,740 | (139 | ) | ||||||||||||||||
|
|
|
| |||||||||||||||||||||
$18,060 | ($433 | ) | ||||||||||||||||||||||
|
|
|
|
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 - 5-Year Interest Rate Swap | Receive | 1.650% | 11/17/14 | DUB | $7,400,000 | $11,840 | ($1,396 | ) | ||||||||||||||||
Call - 5-Year Interest Rate Swap | Receive | 1.700% | 11/17/14 | JPM | 2,000,000 | 3,800 | (684 | ) | ||||||||||||||||
Call - 5-Year Interest Rate Swap | Receive | 1.800% | 12/01/14 | GSC | 2,300,000 | 4,099 | (2,608 | ) | ||||||||||||||||
Call - 5-Year Interest Rate Swap | Receive | 1.800% | 12/01/14 | MSC | 5,600,000 | 9,940 | (6,350 | ) | ||||||||||||||||
Call - 5-Year Interest Rate Swap | Receive | 1.700% | 12/02/14 | DUB | 1,300,000 | 2,730 | (642 | ) |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-23
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Description | Based on 3-Month EUR-LIBOR | Exercise Rate | Expiration Date | Counter- party | Notional Amount | Premium | Value | |||||||||||||||||
Call - 10-Year Interest Rate Swap | Receive | 1.200% | 01/20/15 | GSC | EUR 5,400,000 | $29,217 | ($63,924 | ) | ||||||||||||||||
Call - 10-Year Interest Rate Swap | Receive | 0.950% | 03/23/15 | DUB | 800,000 | 2,073 | (2,411 | ) | ||||||||||||||||
|
|
|
| |||||||||||||||||||||
63,699 | (78,015 | ) | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Based on 3-Month USD-LIBOR | ||||||||||||||||||||||||
Put - 5-Year Interest Rate Swap | Pay | 2.050% | 11/17/14 | JPM | $2,000,000 | 6,850 | (8,376 | ) | ||||||||||||||||
Put - 10-Year Interest Rate Swap | Pay | 2.800% | 11/17/14 | JPM | 7,400,000 | 35,705 | (37,378 | ) | ||||||||||||||||
Put - 10-Year Interest Rate Swap | Pay | 2.850% | 11/17/14 | DUB | 7,400,000 | 40,700 | (27,763 | ) | ||||||||||||||||
Put - 10-Year Interest Rate Swap | Pay | 2.850% | 11/17/14 | MSC | 14,500,000 | 93,796 | (54,401 | ) | ||||||||||||||||
Put - 5-Year Interest Rate Swap | Pay | 2.100% | 12/01/14 | GSC | 2,300,000 | 11,500 | (9,879 | ) | ||||||||||||||||
Put - 5-Year Interest Rate Swap | Pay | 2.150% | 12/01/14 | MSC | 5,600,000 | 21,280 | (19,167 | ) | ||||||||||||||||
Put - 5-Year Interest Rate Swap | Pay | 2.050% | 12/02/14 | DUB | 1,300,000 | 5,863 | (7,066 | ) | ||||||||||||||||
Put - 10-Year Interest Rate Swap | Pay | 2.800% | 02/02/15 | MSC | 2,200,000 | 35,090 | (30,021 | ) | ||||||||||||||||
Put - 5-Year Interest Rate Swap | Pay | 2.600% | 09/14/15 | MSC | 3,400,000 | 44,625 | (45,509 | ) | ||||||||||||||||
Based on 3-Month EUR-LIBOR | ||||||||||||||||||||||||
Put - 10-Year Interest Rate Swap | Pay | 1.600% | 01/20/15 | GSC | EUR 5,400,000 | 56,974 | (10,281 | ) | ||||||||||||||||
Put - 10-Year Interest Rate Swap | Pay | 1.550% | 03/23/15 | DUB | 800,000 | 6,635 | (4,429 | ) | ||||||||||||||||
|
|
|
| |||||||||||||||||||||
359,018 | (254,270 | ) | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
$422,717 | ($332,285 | ) | ||||||||||||||||||||||
|
|
|
|
Options on Futures
Description | Exercise Price | Expiration Date | Exchange | Number of Contracts | Premium | Value | ||||||||||||||||||
Call - U.S. Treasury 5-Year Notes (11/14) | $118.25 | 10/24/14 | CME | 13 | $2,591 | ($4,570 | ) | |||||||||||||||||
Call - U.S. Treasury 10-Year Notes (11/14) | 125.00 | 10/24/14 | CME | 60 | 25,883 | (25,313 | ) | |||||||||||||||||
Call - U.S. Treasury 10-Year Notes (11/14) | 125.50 | 10/24/14 | CME | 11 | 4,542 | (2,750 | ) | |||||||||||||||||
Call - U.S. Treasury 10-Year Notes (11/14) | 126.00 | 10/24/14 | CME | 9 | 4,252 | (1,266 | ) | |||||||||||||||||
Call - U.S. Treasury 10-Year Notes (11/14) | 126.50 | 10/24/14 | CME | 11 | 4,683 | (859 | ) | |||||||||||||||||
Call - U.S. Treasury 30-Year Bonds (11/14) | 139.00 | 10/24/14 | CME | 25 | 16,841 | (16,797 | ) | |||||||||||||||||
Call - U.S. Treasury 30-Year Bonds (11/14) | 140.00 | 10/24/14 | CME | 6 | 2,840 | (2,344 | ) | |||||||||||||||||
Call - U.S. Treasury 30-Year Bonds (11/14) | 141.00 | 10/24/14 | CME | 3 | 709 | (703 | ) | |||||||||||||||||
Call - U.S. Treasury 10-Year Notes (12/14) | 127.00 | 11/21/14 | CME | 49 | 9,919 | (8,422 | ) | |||||||||||||||||
Call - U.S. Treasury 30-Year Bonds (12/14) | 141.00 | 11/21/14 | CME | 9 | 9,736 | (5,484 | ) | |||||||||||||||||
Call - U.S. Treasury 30-Year Bonds (12/14) | 142.00 | 11/21/14 | CME | 6 | 6,168 | (2,531 | ) | |||||||||||||||||
Call - Euro Bund 10-Year Notes (12/14) | EUR 151.00 | 11/21/14 | CME | 7 | 2,696 | (884 | ) | |||||||||||||||||
Call - U.S. Treasury 10-Year Notes (03/15) | $125.50 | 02/20/15 | CME | 2 | 1,431 | (1,438 | ) | |||||||||||||||||
|
|
|
| |||||||||||||||||||||
92,291 | (73,361 | ) | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Put - U.S. Treasury 5-Year Notes (11/14) | 117.50 | 10/24/14 | CME | 17 | 5,265 | (1,859 | ) | |||||||||||||||||
Put - U.S. Treasury 5-Year Notes (11/14) | 118.00 | 10/24/14 | CME | 13 | 3,208 | (3,148 | ) | |||||||||||||||||
Put - U.S. Treasury 10-Year Notes (11/14) | 124.00 | 10/24/14 | CME | 6 | 3,027 | (1,969 | ) | |||||||||||||||||
Put - U.S. Treasury 10-Year Notes (12/14) | 122.00 | 11/21/14 | CME | 18 | 5,567 | (2,813 | ) | |||||||||||||||||
Put - U.S. Treasury 10-Year Notes (12/14) | 124.00 | 11/21/14 | CME | 13 | 7,067 | (7,922 | ) | |||||||||||||||||
Put - U.S. Treasury 30-Year Bonds (12/14) | 136.00 | 11/21/14 | CME | 9 | 11,408 | (8,156 | ) | |||||||||||||||||
Put - Euro Bund 10-Year Notes (12/14) | EUR 146.00 | 11/21/14 | CME | 7 | 1,795 | (3,890 | ) | |||||||||||||||||
Put - U.S. Treasury 10-Year Notes (03/15) | $121.50 | 02/20/15 | CME | 2 | 1,712 | (1,469 | ) | |||||||||||||||||
|
|
|
| |||||||||||||||||||||
39,049 | (31,226 | ) | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
$131,340 | ($104,587 | ) | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total Written Options | $604,146 | ($448,033 | ) | |||||||||||||||||||||
|
|
|
|
(k) | Swap agreements outstanding as of September 30, 2014 were as follows: |
Credit Default Swaps on Sovereign Issues – Buy Protection (1)
Referenced Obligation | Fixed Deal Rate | Expiration Date | Counter- party | Implied Credit Spread at 09/30/14 (3) | Notional Amount (4) | Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
Venezuela Government | 5.000% | 06/20/15 | BRC | 20.736% | $100,000 | $8,995 | $12,999 | ($4,004 | ) | |||||||||||||||||
Venezuela Government | 5.000% | 09/20/19 | HSB | 16.712% | 100,000 | 32,751 | 31,342 | 1,409 | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||
$41,746 | $44,341 | ($2,595 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-24
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
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 09/30/14 (3) | Notional Amount (4) | Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
MetLife Inc | 1.000% | 12/20/14 | CIT | 0.081% | $1,800,000 | $4,170 | ($43,994 | ) | $48,164 | |||||||||||||||||
Mexico Government | 1.000% | 03/20/15 | BRC | 0.266% | 400,000 | 1,492 | (8,999 | ) | 10,491 | |||||||||||||||||
Mexico Government | 1.000% | 03/20/15 | CIT | 0.266% | 400,000 | 1,492 | (9,184 | ) | 10,676 | |||||||||||||||||
Mexico Government | 1.000% | 03/20/15 | DUB | 0.266% | 200,000 | 746 | (4,592 | ) | 5,338 | |||||||||||||||||
Brazilian Government | 1.000% | 06/20/15 | DUB | 0.574% | 1,000,000 | 3,350 | (10,975 | ) | 14,325 | |||||||||||||||||
United Kingdom Index-Linked Treasury Gilt | 1.000% | 06/20/15 | GSC | 0.031% | 1,100,000 | 8,045 | 10,164 | (2,119 | ) | |||||||||||||||||
Brazilian Government | 1.000% | 06/20/15 | HSB | 0.574% | 1,000,000 | 3,350 | (10,975 | ) | 14,325 | |||||||||||||||||
Brazilian Government | 1.000% | 09/20/15 | BRC | 0.628% | 1,000,000 | 3,890 | (7,735 | ) | 11,625 | |||||||||||||||||
Mexico Government | 1.000% | 09/20/15 | BRC | 0.297% | 1,000,000 | 7,146 | (7,735 | ) | 14,881 | |||||||||||||||||
Brazilian Government | 1.000% | 09/20/15 | HSB | 0.628% | 600,000 | 2,334 | (5,961 | ) | 8,295 | |||||||||||||||||
Brazilian Government | 1.000% | 09/20/15 | UBS | 0.628% | 500,000 | 1,945 | (4,731 | ) | 6,676 | |||||||||||||||||
MetLife Inc | 1.000% | 12/20/15 | CIT | 0.145% | 800,000 | 8,628 | (29,083 | ) | 37,711 | |||||||||||||||||
General Electric Capital Corp | 1.000% | 12/20/15 | MSC | 0.275% | 500,000 | 4,585 | (9,796 | ) | 14,381 | |||||||||||||||||
Brazilian Government | 1.000% | 03/20/16 | CIT | 0.768% | 2,200,000 | 8,083 | (15,567 | ) | 23,650 | |||||||||||||||||
Mexico Government | 1.000% | 03/20/16 | CIT | 0.357% | 1,100,000 | 10,741 | (8,978 | ) | 19,719 | |||||||||||||||||
Mexico Government | 1.000% | 03/20/16 | DUB | 0.357% | 700,000 | 6,835 | (5,135 | ) | 11,970 | |||||||||||||||||
General Electric Capital Corp | 1.000% | 06/20/16 | BRC | 0.313% | 1,800,000 | 21,833 | 26,736 | (4,903 | ) | |||||||||||||||||
Berkshire Hathaway Finance Corp | 1.000% | 06/20/16 | CIT | 0.186% | 900,000 | 12,916 | (2,156 | ) | 15,072 | |||||||||||||||||
Brazilian Government | 1.000% | 06/20/16 | CIT | 0.845% | 700,000 | 2,047 | (2,363 | ) | 4,410 | |||||||||||||||||
Brazilian Government | 1.000% | 09/20/16 | GSC | 0.902% | 200,000 | 436 | (1,217 | ) | 1,653 | |||||||||||||||||
Mexico Government | 1.000% | 09/20/16 | JPM | 0.409% | 100,000 | 1,195 | 577 | 618 | ||||||||||||||||||
Indonesia Government | 1.000% | 09/20/16 | UBS | 0.606% | 100,000 | 803 | (1,578 | ) | 2,381 | |||||||||||||||||
Indonesia Government | 1.000% | 06/20/17 | DUB | 0.831% | 200,000 | 959 | (5,884 | ) | 6,843 | |||||||||||||||||
Italy Government | 1.000% | 06/20/17 | GSC | 0.652% | 500,000 | 4,810 | 2,848 | 1,962 | ||||||||||||||||||
Russia Government | 1.000% | 06/20/17 | HSB | 2.258% | 2,300,000 | (75,209 | ) | (49,783 | ) | (25,426 | ) | |||||||||||||||
Indonesia Government | 1.000% | 06/20/17 | UBS | 0.831% | 800,000 | 3,836 | (24,192 | ) | 28,028 | |||||||||||||||||
MetLife Inc | 1.000% | 03/20/19 | BRC | 0.590% | 2,700,000 | 48,671 | 30,101 | 18,570 | ||||||||||||||||||
Prudential Financial Inc | 1.000% | 03/20/19 | BRC | 0.572% | 3,100,000 | 58,305 | 49,794 | 8,511 | ||||||||||||||||||
JPMorgan Chase & Co | 1.000% | 03/20/19 | DUB | 0.570% | 2,300,000 | 43,398 | 42,061 | 1,337 | ||||||||||||||||||
Mexico Government | 1.000% | 03/20/19 | DUB | 0.747% | 20,700,000 | 231,994 | 110,638 | 121,356 | ||||||||||||||||||
Prudential Financial Inc | 1.000% | 03/20/19 | DUB | 0.572% | 1,100,000 | 20,750 | 18,525 | 2,225 | ||||||||||||||||||
American International Group Inc | 1.000% | 03/20/19 | GSC | 0.571% | 2,100,000 | 39,478 | 31,661 | 7,817 | ||||||||||||||||||
Colombia Government | 1.000% | 03/20/19 | GSC | 0.861% | 1,800,000 | 11,208 | (16,452 | ) | 27,660 | |||||||||||||||||
Colombia Government | 1.000% | 03/20/19 | HSB | 0.861% | 7,700,000 | 47,945 | (63,012 | ) | 110,957 | |||||||||||||||||
Mexico Government | 1.000% | 03/20/19 | HSB | 0.747% | 2,200,000 | 24,656 | 10,686 | 13,970 | ||||||||||||||||||
General Electric Capital Corp | 1.000% | 03/20/19 | JPM | 0.520% | 1,800,000 | 37,854 | 28,913 | 8,941 | ||||||||||||||||||
Mexico Government | 1.000% | 03/20/19 | JPM | 0.747% | 2,000,000 | 22,415 | 10,202 | 12,213 | ||||||||||||||||||
AT&T Inc | 1.000% | 03/20/19 | MSC | 0.444% | 2,800,000 | 68,449 | 43,594 | 24,855 | ||||||||||||||||||
Brazilian Government | 1.000% | 03/20/19 | MSC | 1.548% | 2,200,000 | (50,622 | ) | (84,988 | ) | 34,366 | ||||||||||||||||
Italy Government | 1.000% | 06/20/19 | BRC | 0.968% | 300,000 | 504 | (1,992 | ) | 2,496 | |||||||||||||||||
Italy Government | 1.000% | 06/20/19 | DUB | 0.968% | 500,000 | 841 | (3,635 | ) | 4,476 | |||||||||||||||||
Italy Government | 1.000% | 06/20/19 | HSB | 0.968% | 500,000 | 841 | (3,635 | ) | 4,476 | |||||||||||||||||
Russia Government | 1.000% | 06/20/19 | JPM | 2.430% | 2,100,000 | (128,964 | ) | (121,183 | ) | (7,781 | ) | |||||||||||||||
Russia Government | 1.000% | 06/20/19 | MSC | 2.430% | 600,000 | (36,849 | ) | (34,079 | ) | (2,770 | ) | |||||||||||||||
Telstra Corp | 1.000% | 06/20/21 | DUB | 0.678% | 1,400,000 | 28,605 | 19,630 | 8,975 | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||
$519,937 | ($163,459 | ) | $683,396 | |||||||||||||||||||||||
|
|
|
|
|
|
Credit Default Swaps on Credit Indices – Sell Protection (2)
Referenced Obligation | Fixed Deal Receive Rate | Expiration Date | Counterparty | Notional Amount (4) | Value (5) | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | |||||||||||||||||
CDX EM 13 5Y | 5.000% | 06/20/15 | BRC | $1,598,000 | $28,628 | $93,483 | ($64,855 | ) | ||||||||||||||||
CDX EM 13 5Y | 5.000% | 06/20/15 | DUB | 846,000 | 15,156 | 110,480 | (95,324 | ) | ||||||||||||||||
CDX EM 13 5Y | 5.000% | 06/20/15 | HSB | 1,128,000 | 20,208 | 127,126 | (106,918 | ) | ||||||||||||||||
CDX EM 13 5Y | 5.000% | 06/20/15 | MSC | 846,000 | 15,156 | 95,175 | (80,019 | ) | ||||||||||||||||
CDX IG 9 10Y | 0.548% | 12/20/17 | GSC | 96,450 | 1,341 | 0.00 | 1,341 | |||||||||||||||||
ABX HE AAA | 0.110% | 05/25/46 | BRC | 2,449,156 | (500,493 | ) | (499,156 | ) | (1,337 | ) | ||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
(420,004 | ) | (72,892 | ) | (347,112 | ) | |||||||||||||||||||
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-25
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Referenced Obligation | Fixed Deal | Expiration | Exchange | Notional | Value (5) | Upfront | Unrealized | |||||||||||||||
CDX IG 22 2Y | 1.000% | 06/20/19 | CME | $2,710,000 | $44,214 | $40,171 | $4,043 | |||||||||||||||
CDX IG 22 5Y | 1.000% | 06/20/19 | ICE | 1,600,000 | 26,074 | 23,659 | 2,415 | |||||||||||||||
CDX HY 22 2Y | 5.000% | 06/20/19 | CME | 2,791,800 | 171,057 | 178,669 | (7,612 | ) | ||||||||||||||
CDX HY 22 5Y | 5.000% | 06/20/19 | ICE | 6,237,000 | 380,351 | 438,539 | (58,188 | ) | ||||||||||||||
|
|
|
|
|
| |||||||||||||||||
621,696 | 681,038 | (59,342 | ) | |||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||
$201,692 | $608,146 | ($406,454 | ) | |||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||
$763,375 | $489,028 | $274,347 | ||||||||||||||||||||
|
|
|
|
|
|
(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 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 and 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 represents 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 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 | Counterparty | Pay/Receive Floating Rate | Fixed Rate | Expiration Date | Notional Amount | Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||
28-Day MXN TIIE | GSC | Pay | 8.170% | 11/04/16 | MXN 1,200,000 | $7,365 | $1,757 | $5,608 | ||||||||||||||||||||
28-Day MXN TIIE | HSB | Pay | 5.500% | 09/13/17 | 5,000,000 | 7,229 | (1,920 | ) | 9,149 | |||||||||||||||||||
28-Day MXN TIIE | DUB | Pay | 5.700% | 01/18/19 | 10,000,000 | 11,067 | (4,168 | ) | 15,235 | |||||||||||||||||||
28-Day MXN TIIE | GSC | Pay | 5.700% | 01/18/19 | 3,000,000 | 3,308 | (871 | ) | 4,179 | |||||||||||||||||||
28-Day MXN TIIE | JPM | Pay | 5.700% | 01/18/19 | 3,000,000 | 3,320 | (1,022 | ) | 4,342 | |||||||||||||||||||
BRL CDI Compounded | UBS | Pay | 11.680% | 01/04/21 | BRL 2,200,000 | (8,192 | ) | (8,778 | ) | 586 | ||||||||||||||||||
BRL CDI Compounded | DUB | Pay | 12.055% | 01/04/21 | 700,000 | (1,076 | ) | (1,076 | ) | — | ||||||||||||||||||
BRL CDI Compounded | HSB | Pay | 12.055% | 01/04/21 | 2,600,000 | 835 | 5,424 | (4,589 | ) | |||||||||||||||||||
BRL CDI Compounded | MSC | Pay | 12.055% | 01/04/21 | 1,900,000 | 2,395 | 3,454 | (1,059 | ) | |||||||||||||||||||
BRL CDI Compounded | UBS | Pay | 12.055% | 01/04/21 | 2,400,000 | (630 | ) | (630 | ) | — | ||||||||||||||||||
28-Day MXN TIIE | BRC | Pay | 6.000% | 09/02/22 | MXN 27,000,000 | (12,088 | ) | (14,093 | ) | 2,005 | ||||||||||||||||||
28-Day MXN TIIE | UBS | Pay | 6.150% | 06/07/24 | 10,000,000 | (12,562 | ) | 9,944 | (22,506 | ) | ||||||||||||||||||
28-Day MXN TIIE | DUB | Pay | 6.810% | 06/19/34 | 7,000,000 | (17,186 | ) | 6,792 | (23,978 | ) | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||
(16,215 | ) | (5,187 | ) | (11,028 | ) | |||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||
Exchange | ||||||||||||||||||||||||||||
28-Day MXN TIIE | CME | Pay | 5.600% | 09/06/16 | MXN 4,600,000 | 10,727 | 10,585 | 142 | ||||||||||||||||||||
3-Month USD-LIBOR | CME | Pay | 1.750% | 06/15/17 | $32,300,000 | (88,195 | ) | 867 | (89,062 | ) | ||||||||||||||||||
28-Day MXN TIIE | CME | Pay | 5.500% | 09/13/17 | MXN 16,000,000 | 31,434 | 33,358 | (1,924 | ) | |||||||||||||||||||
3-Month USD-LIBOR | CME | Pay | 3.000% | 09/21/17 | $51,500,000 | 368,985 | 513,904 | (144,919 | ) | |||||||||||||||||||
1-Day USD Federal Funds | CME | Pay | 1.000% | 10/15/17 | 35,300,000 | (424,926 | ) | (41,606 | ) | (383,320 | ) | |||||||||||||||||
3-Month USD-LIBOR | CME | Pay | 4.000% | 06/19/24 | 3,900,000 | 93,745 | 64,242 | 29,503 | ||||||||||||||||||||
10-Year USD-LIBOR | CME | Receive | 2.550% | 09/04/24 | 900,000 | 6,294 | (789 | ) | 7,083 | |||||||||||||||||||
28-Day MXN TIIE | CME | Pay | 6.810% | 06/19/34 | MXN 104,000,000 | (226,426 | ) | 112,312 | (338,738 | ) | ||||||||||||||||||
30-Year USD-LIBOR | CME | Receive | 3.000% | 06/19/43 | $16,500,000 | 495,469 | 906,848 | (411,379 | ) | |||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||
267,107 | 1,599,721 | (1,332,614 | ) | |||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||
$250,892 | $1,594,534 | ($1,343,642 | ) | |||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||
Total Swap Agreements | $1,014,267 | $2,083,562 | ($1,069,295 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-26
PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
(l) | As of September 30, 2014, investments with a total aggregate value of $2,721,575 were fully or partially segregated with the broker(s)/custodian as collateral for open futures contracts, forward foreign currency contracts, option contracts, and swap agreements. |
(m) | 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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Corporate Bonds & Notes | $172,403,522 | $— | $171,978,480 | $425,042 | |||||||||||||
Senior Loan Notes | 1,887,838 | — | 1,887,838 | — | ||||||||||||||
Mortgage-Backed Securities | 256,975,192 | — | 255,758,535 | 1,216,657 | ||||||||||||||
Asset-Backed Securities | 51,019,132 | — | 51,019,132 | — | ||||||||||||||
U.S. Government Agency Issues | 3,012,437 | — | 3,012,437 | — | ||||||||||||||
U.S. Treasury Obligations | 19,812,794 | — | 19,812,794 | — | ||||||||||||||
Foreign Government Bonds & Notes | 62,457,887 | — | 62,457,887 | — | ||||||||||||||
Municipal Bonds | 15,373,431 | — | 15,373,431 | — | ||||||||||||||
Short-Term Investments | 258,268,835 | 156,158,534 | 102,110,301 | — | ||||||||||||||
Derivatives: | ||||||||||||||||||
Credit Contracts | ||||||||||||||||||
Swaps | 1,555,512 | — | 1,555,512 | — | ||||||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Futures | 206,653 | 206,653 | — | — | ||||||||||||||
Forward Foreign Currency Contracts | 4,533,561 | — | 4,533,561 | — | ||||||||||||||
Purchased Options | 3,513 | 3,513 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Foreign Currency Contracts | 4,743,727 | 210,166 | 4,533,561 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Interest Rate Contracts | ||||||||||||||||||
Futures | 10,910 | 10,910 | — | — | ||||||||||||||
Purchased Options | 2,156 | 2,156 | ||||||||||||||||
Swaps | 1,042,173 | — | 1,042,173 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Interest Rate Contracts | 1,055,239 | 13,066 | 1,042,173 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Assets - Derivatives | 7,354,478 | 223,232 | 7,131,246 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Assets | 848,565,546 | 156,381,766 | 690,542,081 | 1,641,699 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Liabilities | Securities Sold Short | |||||||||||||||||
Mortgage-Backed Securities | (1,050,859 | ) | — | (1,050,859 | ) | — | ||||||||||||
Derivatives: | ||||||||||||||||||
Credit Contracts | ||||||||||||||||||
Written Options | (2,345 | ) | — | (2,345 | ) | — | ||||||||||||
Swaps | (792,137 | ) | — | (792,137 | ) | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Credit Contracts | (794,482 | ) | — | (794,482 | ) | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Forward Foreign Currency Contracts | (698,254 | ) | — | (698,254 | ) | — | ||||||||||||
Written Options | (8,383 | ) | — | (8,383 | ) | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Foreign Currency Contracts | (706,637 | ) | — | (706,637 | ) | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Interest Rate Contracts | ||||||||||||||||||
Futures | (929,814 | ) | (929,814 | ) | — | — | ||||||||||||
Written Options | (437,305 | ) | (104,587 | ) | (332,718 | ) | — | |||||||||||
Swaps | (791,281 | ) | — | (791,281 | ) | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Interest Rate Contracts | (2,158,400 | ) | (1,034,401 | ) | (1,123,999 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities – Derivatives | (3,659,519 | ) | (1,034,401 | ) | (2,625,118 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities | (4,710,378 | ) | (1,034,401 | ) | (3,675,977 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $843,855,168 | $155,347,365 | $686,866,104 | $1,641,699 | ||||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-27
PACIFIC LIFE FUNDS
PL SHORT DURATION BOND FUND
Schedule of Investments
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
CORPORATE BONDS & NOTES - 50.8% | ||||||||
Consumer Discretionary - 4.9% | ||||||||
AutoZone Inc | ||||||||
1.300% due 01/13/17 | $345,000 | $345,137 | ||||||
5.500% due 11/15/15 | 110,000 | 115,769 | ||||||
5.750% due 01/15/15 | 90,000 | 91,356 | ||||||
Brinker International Inc | 180,000 | 180,088 | ||||||
British Sky Broadcasting Group PLC (United Kingdom) | 240,000 | 240,187 | ||||||
Carnival Corp (Panama) | 225,000 | 225,779 | ||||||
Cox Communications Inc | 161,000 | 162,588 | ||||||
Delphi Corp | 715,000 | 786,500 | ||||||
DIRECTV Holdings LLC | ||||||||
1.750% due 01/15/18 | 340,000 | 338,658 | ||||||
2.400% due 03/15/17 | 835,000 | 854,203 | ||||||
3.550% due 03/15/15 | 200,000 | 202,824 | ||||||
Dollar General Corp | 630,000 | 658,446 | ||||||
DR Horton Inc | 325,000 | 338,812 | ||||||
General Motors Co | 450,000 | 459,562 | ||||||
GLP Capital LP | 525,000 | 535,500 | ||||||
Mohawk Industries Inc | 385,000 | 410,495 | ||||||
NBCUniversal Enterprise Inc | 290,000 | 293,171 | ||||||
Newell Rubbermaid Inc | ||||||||
2.000% due 06/15/15 | 100,000 | 100,966 | ||||||
2.050% due 12/01/17 | 865,000 | 868,394 | ||||||
Omnicom Group Inc | 670,000 | 719,551 | ||||||
Pinnacle Entertainment Inc | 295,000 | 308,275 | ||||||
The Goodyear Tire & Rubber Co (2nd Lien) | 425,000 | 456,875 | ||||||
The Interpublic Group of Cos Inc | 625,000 | 627,975 | ||||||
Thomson Reuters Corp (Canada) | ||||||||
0.875% due 05/23/16 | 255,000 | 254,671 | ||||||
1.300% due 02/23/17 | 200,000 | 199,783 | ||||||
1.650% due 09/29/17 | 370,000 | 369,773 | ||||||
Time Warner Cable Inc | ||||||||
8.250% due 04/01/19 | 495,000 | 615,575 | ||||||
8.750% due 02/14/19 | 495,000 | 623,812 | ||||||
Univision Communications Inc | 545,000 | 569,525 | ||||||
Viacom Inc | 105,000 | 106,438 | ||||||
Whirlpool Corp | 145,000 | 144,579 | ||||||
|
| |||||||
12,205,267 | ||||||||
|
| |||||||
Consumer Staples - 1.8% | ||||||||
Avon Products Inc | 195,000 | 197,010 | ||||||
BAT International Finance PLC (United Kingdom) | 710,000 | 713,522 | ||||||
Bunge Ltd Finance Corp | ||||||||
3.200% due 06/15/17 | 730,000 | 756,617 | ||||||
4.100% due 03/15/16 | 255,000 | 266,148 |
Principal Amount | Value | |||||||
CVS Health Corp | $245,000 | $245,462 | ||||||
Imperial Tobacco Finance PLC (United Kingdom) | 755,000 | 752,670 | ||||||
Kraft Foods Group Inc | 315,000 | 317,389 | ||||||
Reynolds American Inc | 125,000 | 125,402 | ||||||
The Kroger Co | 180,000 | 180,048 | ||||||
Tyson Foods Inc ‘A’ | 300,000 | 300,694 | ||||||
Wm Wrigley Jr Co | ||||||||
1.400% due 10/21/16 ~ | 110,000 | 110,596 | ||||||
2.000% due 10/20/17 ~ | 525,000 | 530,342 | ||||||
|
| |||||||
4,495,900 | ||||||||
|
| |||||||
Energy - 10.7% | ||||||||
Anadarko Petroleum Corp | ||||||||
5.950% due 09/15/16 | 190,000 | 207,335 | ||||||
6.375% due 09/15/17 | 685,000 | 775,776 | ||||||
BG Energy Capital PLC (United Kingdom) | 700,000 | 724,459 | ||||||
Cameron International Corp | ||||||||
1.150% due 12/15/16 | 85,000 | 84,975 | ||||||
1.400% due 06/15/17 | 290,000 | 289,990 | ||||||
Canadian Natural Resources Ltd (Canada) | ||||||||
1.450% due 11/14/14 | 540,000 | 540,340 | ||||||
5.700% due 05/15/17 | 455,000 | 503,401 | ||||||
Chesapeake Energy Corp | 375,000 | 376,406 | ||||||
CNOOC Finance Ltd (United Kingdom) | 208,000 | 208,232 | ||||||
CNOOC Nexen Finance ULC (Canada) | 245,000 | 245,239 | ||||||
Concho Resources Inc | 345,000 | 370,013 | ||||||
CONSOL Energy Inc | 560,000 | 590,100 | ||||||
Continental Resources Inc | 500,000 | 555,000 | ||||||
DCP Midstream LLC | 365,000 | 381,536 | ||||||
DCP Midstream Operating LP | ||||||||
2.500% due 12/01/17 | 625,000 | 638,259 | ||||||
2.700% due 04/01/19 | 20,000 | 20,074 | ||||||
3.250% due 10/01/15 | 210,000 | 215,368 | ||||||
Delek & Avner Tamar Bond Ltd (Israel) | 165,000 | 165,811 | ||||||
Ecopetrol SA (Colombia) | 325,000 | 345,313 | ||||||
Enbridge Energy Partners LP | 445,000 | 488,374 | ||||||
Energy Transfer Partners LP | ||||||||
5.950% due 02/01/15 | 810,000 | 823,392 | ||||||
6.700% due 07/01/18 | 195,000 | 224,711 | ||||||
EnLink Midstream Partners LP | 85,000 | 85,629 | ||||||
Ensco PLC (United Kingdom) | 875,000 | 901,579 | ||||||
Enterprise Products Operating LLC | ||||||||
1.250% due 08/13/15 | 370,000 | 371,816 | ||||||
5.600% due 10/15/14 | 316,000 | 316,599 | ||||||
Florida Gas Transmission Co LLC | 520,000 | 532,972 | ||||||
Freeport McMoran Oil & Gas | ||||||||
6.125% due 06/15/19 | 90,000 | 98,775 | ||||||
6.500% due 11/15/20 | 470,000 | 515,881 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-28
PACIFIC LIFE FUNDS
PL SHORT DURATION BOND FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
Kinder Morgan Energy Partners LP | ||||||||
3.500% due 03/01/16 | $175,000 | $181,002 | ||||||
5.125% due 11/15/14 | 285,000 | 286,554 | ||||||
Korea National Oil Corp (South Korea) | 240,000 | 252,657 | ||||||
Marathon Oil Corp | 740,000 | 740,461 | ||||||
Murphy Oil Corp | 1,015,000 | 1,031,830 | ||||||
Nabors Industries Inc | 150,000 | 153,336 | ||||||
Noble Holding International Ltd (Cayman) | ||||||||
2.500% due 03/15/17 | 65,000 | 66,217 | ||||||
3.050% due 03/01/16 | 415,000 | 424,228 | ||||||
3.450% due 08/01/15 | 110,000 | 112,270 | ||||||
ONEOK Partners LP | ||||||||
3.200% due 09/15/18 | 40,000 | 41,503 | ||||||
3.250% due 02/01/16 | 640,000 | 660,064 | ||||||
Origin Energy Finance Ltd (Australia) | 1,100,000 | 1,128,799 | ||||||
Petrobras Global Finance BV (Netherlands) | ||||||||
2.000% due 05/20/16 | 410,000 | 411,005 | ||||||
3.250% due 03/17/17 | 535,000 | 542,741 | ||||||
Petroleos Mexicanos (Mexico) | 80,000 | 82,200 | ||||||
Phillips 66 | 290,000 | 291,880 | ||||||
Pioneer Natural Resources Co | 1,080,000 | 1,165,067 | ||||||
Plains All American Pipeline LP | 1,095,000 | 1,126,855 | ||||||
Regency Energy Partners LP | 450,000 | 479,250 | ||||||
Rowan Cos Inc | 120,000 | 129,754 | ||||||
SESI LLC | ||||||||
6.375% due 05/01/19 | 510,000 | 532,950 | ||||||
7.125% due 12/15/21 | 580,000 | 643,800 | ||||||
Spectra Energy Partners LP | 185,000 | 190,516 | ||||||
Talisman Energy Inc (Canada) | 455,000 | 467,703 | ||||||
Targa Resources Partners LP | 345,000 | 360,309 | ||||||
Tennessee Gas Pipeline Co LLC | 580,000 | 632,453 | ||||||
Transocean Inc (Cayman) | ||||||||
2.500% due 10/15/17 | 785,000 | 785,542 | ||||||
4.950% due 11/15/15 | 155,000 | 161,000 | ||||||
5.050% due 12/15/16 | 130,000 | 138,629 | ||||||
Williams Partners LP | 890,000 | 899,941 | ||||||
Woodside Finance Ltd (Australia) | 705,000 | 707,936 | ||||||
|
| |||||||
26,425,807 | ||||||||
|
| |||||||
Financials - 18.8% | ||||||||
Aflac Inc | 75,000 | 77,359 | ||||||
AIA Group Ltd (Hong Kong) | 200,000 | 198,663 | ||||||
Ally Financial Inc | 575,000 | 564,937 | ||||||
American Express Co | 810,000 | 817,719 | ||||||
American International Group Inc | 500,000 | 562,971 | ||||||
American Tower Corp REIT | 1,095,000 | 1,116,988 |
Principal Amount | Value | |||||||
Bank of America Corp | ||||||||
1.250% due 01/11/16 | $365,000 | $366,649 | ||||||
1.500% due 10/09/15 | 110,000 | 110,854 | ||||||
1.700% due 08/25/17 | 945,000 | 942,709 | ||||||
6.400% due 08/28/17 | 205,000 | 230,806 | ||||||
6.875% due 04/25/18 | 320,000 | 369,444 | ||||||
Banque Federative du Credit Mutuel SA (France) | ||||||||
1.700% due 01/20/17 ~ | 575,000 | 577,781 | ||||||
2.500% due 10/29/18 ~ | 575,000 | 579,040 | ||||||
Barclays Bank PLC (United Kingdom) | 775,000 | 862,785 | ||||||
BB&T Corp | ||||||||
1.094% due 06/15/18 § | 325,000 | 331,025 | ||||||
5.200% due 12/23/15 | 445,000 | 468,229 | ||||||
Boston Properties LP REIT | 470,000 | 483,873 | ||||||
BPCE SA (France) | 570,000 | 572,067 | ||||||
Capital One Bank USA NA | 250,000 | 250,055 | ||||||
Capital One Financial Corp | 660,000 | 665,332 | ||||||
Caterpillar Financial Services Corp | 480,000 | 478,971 | ||||||
CIT Group Inc | 230,000 | 232,731 | ||||||
Citigroup Inc | ||||||||
1.250% due 01/15/16 | 720,000 | 723,098 | ||||||
1.300% due 11/15/16 | 170,000 | 170,108 | ||||||
1.550% due 08/14/17 | 980,000 | 973,290 | ||||||
CNA Financial Corp | 1,070,000 | 1,175,574 | ||||||
Daimler Finance North America LLC | 445,000 | 452,832 | ||||||
DNB Bank ASA (Norway) | 785,000 | 820,067 | ||||||
Fidelity National Financial Inc | 480,000 | 534,232 | ||||||
Fifth Third Bancorp | 310,000 | 320,997 | ||||||
Fifth Third Bank | 470,000 | 470,573 | ||||||
Ford Motor Credit Co LLC | ||||||||
1.684% due 09/08/17 | 660,000 | 657,333 | ||||||
1.700% due 05/09/16 | 295,000 | 297,579 | ||||||
3.000% due 06/12/17 | 610,000 | 630,017 | ||||||
General Electric Capital Corp | ||||||||
0.945% due 04/02/18 § | 925,000 | 936,358 | ||||||
2.375% due 06/30/15 | 625,000 | 635,118 | ||||||
General Motors Financial Co Inc | 175,000 | 176,969 | ||||||
Harley-Davidson Financial Services Inc | 445,000 | 447,374 | ||||||
Hazine Mustesarligi Varlik Kiralama AS (Turkey) | 325,000 | 335,969 | ||||||
HBOS PLC (United Kingdom) | 710,000 | 804,559 | ||||||
Hyundai Capital America | ||||||||
1.450% due 02/06/17 ~ | 790,000 | 789,813 | ||||||
1.625% due 10/02/15 ~ | 195,000 | 196,381 | ||||||
1.875% due 08/09/16 ~ | 230,000 | 232,944 | ||||||
3.750% due 04/06/16 ~ | 140,000 | 145,376 | ||||||
Hyundai Capital Services Inc (South Korea) | ||||||||
3.500% due 09/13/17 ~ | 200,000 | 208,850 | ||||||
4.375% due 07/27/16 ~ | 525,000 | 553,640 | ||||||
6.000% due 05/05/15 ~ | 100,000 | 103,037 | ||||||
Intercontinental Exchange Inc | 195,000 | 198,215 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-29
PACIFIC LIFE FUNDS
PL SHORT DURATION BOND FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
JPMorgan Chase & Co | ||||||||
0.855% due 02/26/16 § | $440,000 | $442,762 | ||||||
2.000% due 08/15/17 | 1,125,000 | 1,135,149 | ||||||
KeyBank NA | 180,000 | 187,336 | ||||||
KeyCorp | 325,000 | 333,842 | ||||||
Kilroy Realty LP REIT | 405,000 | 422,603 | ||||||
Legg Mason Inc | 80,000 | 80,344 | ||||||
Lloyds Bank PLC (United Kingdom) | 325,000 | 326,125 | ||||||
Marsh & McLennan Cos Inc | 235,000 | 239,244 | ||||||
Metropolitan Life Global Funding I | ||||||||
1.300% due 04/10/17 ~ | 785,000 | 784,300 | ||||||
1.500% due 01/10/18 ~ | 365,000 | 362,315 | ||||||
Mizuho Bank Ltd (Japan) | 450,000 | 449,920 | ||||||
Morgan Stanley | ||||||||
1.083% due 01/24/19 § | 1,625,000 | 1,645,290 | ||||||
1.514% due 04/25/18 § | 645,000 | 663,720 | ||||||
MUFG Union Bank NA | 435,000 | 442,332 | ||||||
National Bank of Canada (Canada) | 965,000 | 959,309 | ||||||
New York Life Global Funding | 580,000 | 597,130 | ||||||
Nissan Motor Acceptance Corp | 850,000 | 859,220 | ||||||
Nordea Bank AB (Sweden) | 1,160,000 | 1,160,360 | ||||||
PNC Bank NA | 400,000 | 401,307 | ||||||
Principal Financial Group Inc | 115,000 | 115,134 | ||||||
Principal Life Global Funding II | 565,000 | 565,147 | ||||||
Regions Bank | 665,000 | 776,683 | ||||||
Regions Financial Corp | ||||||||
5.750% due 06/15/15 | 200,000 | 206,407 | ||||||
7.750% due 11/10/14 | 205,000 | 206,480 | ||||||
Royal Bank of Scotland Group PLC (United Kingdom) | 415,000 | 421,250 | ||||||
Simon Property Group LP REIT | 515,000 | 516,519 | ||||||
Standard Chartered PLC (United Kingdom) | 665,000 | 663,504 | ||||||
Sumitomo Mitsui Banking Corp (Japan) | 280,000 | 280,271 | ||||||
Sumitomo Mitsui Trust Bank Ltd (Japan) | 720,000 | 717,292 | ||||||
SunTrust Banks Inc | 260,000 | 260,925 | ||||||
Swedbank AB (Sweden) | 1,065,000 | 1,061,572 | ||||||
The Bank of Tokyo-Mitsubishi UFJ Ltd (Japan) | 695,000 | 702,115 | ||||||
The Goldman Sachs Group Inc | ||||||||
1.600% due 11/23/15 | 554,000 | 558,618 | ||||||
6.150% due 04/01/18 | 235,000 | 265,145 | ||||||
6.250% due 09/01/17 | 855,000 | 960,060 | ||||||
UBS AG (Switzerland) | 1,245,000 | 1,236,107 | ||||||
Ventas Realty LP REIT | ||||||||
1.250% due 04/17/17 | 125,000 | 124,484 | ||||||
1.550% due 09/26/16 | 200,000 | 201,457 |
Principal Amount | Value | |||||||
2.000% due 02/15/18 | $170,000 | $170,184 | ||||||
3.125% due 11/30/15 | 650,000 | 667,623 | ||||||
WEA Finance LLC | 360,000 | 360,813 | ||||||
XLIT Ltd (Cayman) | 280,000 | 280,086 | ||||||
|
| |||||||
46,661,775 | ||||||||
|
| |||||||
Health Care - 4.0% | ||||||||
AbbVie Inc | 670,000 | 672,675 | ||||||
Actavis Inc | 605,000 | 600,267 | ||||||
Aetna Inc | 745,000 | 742,603 | ||||||
Agilent Technologies Inc | 565,000 | 651,941 | ||||||
Catholic Health Initiatives | ||||||||
1.600% due 11/01/17 | 65,000 | 65,339 | ||||||
2.600% due 08/01/18 | 305,000 | 309,473 | ||||||
Celgene Corp | 975,000 | 982,990 | ||||||
Express Scripts Holding Co | ||||||||
1.250% due 06/02/17 | 360,000 | 357,413 | ||||||
2.750% due 11/21/14 | 490,000 | 491,539 | ||||||
3.125% due 05/15/16 | 475,000 | 492,150 | ||||||
Gilead Sciences Inc | 570,000 | 572,070 | ||||||
Hologic Inc | 425,000 | 438,812 | ||||||
Humana Inc | ||||||||
2.625% due 10/01/19 | 195,000 | 195,152 | ||||||
6.450% due 06/01/16 | 250,000 | 272,229 | ||||||
Life Technologies Corp | ||||||||
3.500% due 01/15/16 | 235,000 | 242,644 | ||||||
4.400% due 03/01/15 | 425,000 | 431,646 | ||||||
McKesson Corp | ||||||||
0.950% due 12/04/15 | 185,000 | 185,270 | ||||||
1.292% due 03/10/17 | 370,000 | 368,903 | ||||||
Perrigo Co PLC (Ireland) | 415,000 | 415,561 | ||||||
Thermo Fisher Scientific Inc | 755,000 | 753,168 | ||||||
UnitedHealth Group Inc | ||||||||
0.850% due 10/15/15 | 200,000 | 200,644 | ||||||
1.875% due 11/15/16 | 155,000 | 157,795 | ||||||
WellPoint Inc | 300,000 | 301,820 | ||||||
|
| |||||||
9,902,104 | ||||||||
|
| |||||||
Industrials - 3.4% | ||||||||
CNH Industrial Capital LLC | 770,000 | 778,662 | ||||||
Eaton Corp | 265,000 | 264,078 | ||||||
ERAC USA Finance LLC | ||||||||
1.400% due 04/15/16 ~ | 330,000 | 332,439 | ||||||
2.750% due 03/15/17 ~ | 175,000 | 180,389 | ||||||
2.800% due 11/01/18 ~ | 50,000 | 51,246 | ||||||
5.600% due 05/01/15 ~ | 135,000 | 138,887 | ||||||
6.375% due 10/15/17 ~ | 445,000 | 506,627 | ||||||
GATX Corp | ||||||||
1.250% due 03/04/17 | 445,000 | 441,985 | ||||||
2.375% due 07/30/18 | 110,000 | 110,774 | ||||||
3.500% due 07/15/16 | 360,000 | 375,011 | ||||||
Heathrow Funding Ltd (United Kingdom) | 610,000 | 617,748 | ||||||
International Lease Finance Corp | 405,000 | 402,469 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-30
PACIFIC LIFE FUNDS
PL SHORT DURATION BOND FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
JB Hunt Transport Services Inc | $105,000 | $105,357 | ||||||
Kansas City Southern de Mexico SA de CV (Mexico) | 250,000 | 239,927 | ||||||
Norfolk Southern Corp | 930,000 | 987,388 | ||||||
Penske Truck Leasing Co LP | ||||||||
2.500% due 03/15/16 ~ | 655,000 | 668,519 | ||||||
2.500% due 06/15/19 ~ | 270,000 | 268,832 | ||||||
2.875% due 07/17/18 ~ | 150,000 | 153,651 | ||||||
3.125% due 05/11/15 ~ | 140,000 | 141,996 | ||||||
Roper Industries Inc | ||||||||
1.850% due 11/15/17 | 105,000 | 105,457 | ||||||
2.050% due 10/01/18 | 270,000 | 267,764 | ||||||
Southwest Airlines Co | ||||||||
5.250% due 10/01/14 | 315,000 | 315,000 | ||||||
5.750% due 12/15/16 | 235,000 | 256,964 | ||||||
USG Corp | 435,000 | 453,814 | ||||||
Waste Management Inc | 260,000 | 266,560 | ||||||
|
| |||||||
8,431,544 | ||||||||
|
| |||||||
Information Technology - 1.6% | ||||||||
Amphenol Corp ‘A’ | 180,000 | 179,864 | ||||||
Anstock II Ltd (Cayman) | 250,000 | 247,210 | ||||||
Arrow Electronics Inc | 270,000 | 277,013 | ||||||
Avnet Inc | 115,000 | 126,713 | ||||||
Baidu Inc (Cayman) | 210,000 | 209,068 | ||||||
Fidelity National Information Services Inc | 165,000 | 164,156 | ||||||
Fiserv Inc | ||||||||
3.125% due 06/15/16 | 740,000 | 765,013 | ||||||
6.800% due 11/20/17 | 25,000 | 28,610 | ||||||
Hewlett-Packard Co | ||||||||
2.350% due 03/15/15 | 220,000 | 221,893 | ||||||
2.625% due 12/09/14 | 300,000 | 301,272 | ||||||
Juniper Networks Inc | 75,000 | 76,992 | ||||||
Oracle Corp | 860,000 | 869,652 | ||||||
Tencent Holdings Ltd (Cayman) | 315,000 | 315,512 | ||||||
Xerox Corp | 70,000 | 72,499 | ||||||
|
| |||||||
3,855,467 | ||||||||
|
| |||||||
Materials - 1.4% | ||||||||
Anglo American Capital PLC (United Kingdom) | 240,000 | 241,443 | ||||||
Ashland Inc | 525,000 | 527,625 | ||||||
Eastman Chemical Co | 230,000 | 234,857 | ||||||
Goldcorp Inc (Canada) | 510,000 | 509,112 | ||||||
International Paper Co | 133,000 | 136,093 | ||||||
Martin Marietta Materials Inc | 305,000 | 306,521 | ||||||
Rock-Tenn Co | 495,000 | 504,000 |
Principal Amount | Value | |||||||
The Dow Chemical Co | $725,000 | $740,950 | ||||||
Vale Overseas Ltd (Cayman) | 235,000 | 259,176 | ||||||
|
| |||||||
3,459,777 | ||||||||
|
| |||||||
Telecommunication Services - 1.9% | ||||||||
America Movil SAB de CV (Mexico) | 275,000 | 281,221 | ||||||
CC Holdings GS V LLC | 1,050,000 | 1,063,106 | ||||||
GTP Acquisition Partners I LLC | ||||||||
2.364% due 05/15/43 ~ | 300,000 | 296,430 | ||||||
4.347% due 06/15/41 ~ | 190,000 | 194,313 | ||||||
SBA Tower Trust | ||||||||
2.240% due 04/15/43 ~ | 300,000 | 296,239 | ||||||
2.933% due 12/15/42 ~ | 920,000 | 934,523 | ||||||
3.598% due 04/15/43 ~ | 250,000 | 250,595 | ||||||
UPCB Finance III Ltd (Cayman) | 465,000 | 488,297 | ||||||
Verizon Communications Inc | ||||||||
1.350% due 06/09/17 | 385,000 | 383,423 | ||||||
2.625% due 02/21/20 ~ | 646,000 | 638,847 | ||||||
|
| |||||||
4,826,994 | ||||||||
|
| |||||||
Utilities - 2.3% | ||||||||
CMS Energy Corp | 370,000 | 382,391 | ||||||
Commonwealth Edison Co | 120,000 | 122,401 | ||||||
Dominion Resources Inc | ||||||||
1.400% due 09/15/17 | 645,000 | 640,999 | ||||||
1.950% due 08/15/16 | 165,000 | 167,793 | ||||||
Duke Energy Corp | ||||||||
1.625% due 08/15/17 | 220,000 | 221,038 | ||||||
2.150% due 11/15/16 | 460,000 | 470,156 | ||||||
Enel Finance International NV (Netherlands) | ||||||||
3.875% due 10/07/14 ~ | 145,000 | 145,041 | ||||||
6.250% due 09/15/17 ~ | 500,000 | 561,851 | ||||||
Georgia Power Co | 220,000 | 220,099 | ||||||
Korea Hydro & Nuclear Power Co Ltd (South Korea) | 275,000 | 280,737 | ||||||
Mississippi Power Co | 120,000 | 123,148 | ||||||
Monongahela Power Co | 65,000 | 71,277 | ||||||
NextEra Energy Capital Holdings Inc | 185,000 | 185,801 | ||||||
PPL Capital Funding Inc | 145,000 | 144,530 | ||||||
PSEG Power LLC | 130,000 | 134,429 | ||||||
Suburban Propane Partners LP | 275,000 | 285,312 | ||||||
The Southern Co | ||||||||
1.300% due 08/15/17 | 765,000 | 761,870 | ||||||
1.950% due 09/01/16 | 145,000 | 147,912 | ||||||
Zhejiang Energy Group Hong Kong Ltd (Hong Kong) | 635,000 | 634,067 | ||||||
|
| |||||||
5,700,852 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes | 125,965,487 | |||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-31
PACIFIC LIFE FUNDS
PL SHORT DURATION BOND FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
MORTGAGE-BACKED SECURITIES - 19.2% | ||||||||
Collateralized Mortgage Obligations - Commercial - 6.6% |
| |||||||
Banc of America Commercial Mortgage Trust | ||||||||
5.448% due 09/10/47 " | $30,000 | $32,184 | ||||||
5.634% due 07/10/46 " | 868,431 | 919,309 | ||||||
6.015% due 02/10/51 " § | 25,000 | 27,566 | ||||||
Banc of America Merrill Lynch Commercial Mortgage Inc | 435,000 | 440,346 | ||||||
Bear Stearns Commercial Mortgage Securities Trust | ||||||||
4.674% due 06/11/41 " | 131,047 | 132,892 | ||||||
5.116% due 02/11/41 " § | 235,453 | 237,093 | ||||||
5.201% due 12/11/38 " | 195,000 | 209,281 | ||||||
5.540% due 09/11/41 " | 167,273 | 177,787 | ||||||
Citigroup Commercial Mortgage Trust | ||||||||
1.102% due 11/10/46 " | 314,761 | 313,957 | ||||||
1.199% due 03/10/47 " | 227,439 | 225,928 | ||||||
1.242% due 05/10/47 " | 233,610 | 232,225 | ||||||
1.392% due 07/10/47 " | 163,270 | 162,346 | ||||||
Commercial Mortgage Pass-Through Certificates | 225,000 | 225,003 | ||||||
Commercial Mortgage Trust | ||||||||
1.006% due 02/13/32 " § ~ | 180,000 | 179,643 | ||||||
1.156% due 12/10/44 " | 41,614 | 41,851 | ||||||
1.218% due 02/10/47 " | 748,300 | 743,764 | ||||||
1.259% due 04/10/47 " | 380,151 | 377,631 | ||||||
1.275% due 05/10/47 " | 191,206 | 190,060 | ||||||
1.298% due 03/10/47 " | 295,205 | 292,993 | ||||||
1.309% due 08/10/47 " | 102,433 | 102,033 | ||||||
1.373% due 09/10/47 " | 470,000 | 469,545 | ||||||
1.415% due 08/10/47 " | 638,273 | 635,401 | ||||||
1.442% due 07/15/47 " | 228,277 | 226,949 | ||||||
5.167% due 06/10/44 " § | 70,000 | 72,231 | ||||||
6.014% due 07/10/38 " § | 140,241 | 148,944 | ||||||
Credit Suisse Mortgage Trust | 100,000 | 100,126 | ||||||
DBUBS Mortgage Trust | 65,170 | 65,915 | ||||||
GS Mortgage Securities Trust | ||||||||
1.206% due 07/10/46 " | 224,754 | 225,191 | ||||||
1.290% due 06/10/47 " | 197,971 | 196,802 | ||||||
1.343% due 04/10/47 " | 390,290 | 388,680 | ||||||
1.509% due 09/10/47 " § | 393,000 | 392,728 | ||||||
5.553% due 04/10/38 " § | 620,000 | 646,450 | ||||||
JP Morgan Chase Commercial Mortgage Securities Trust | ||||||||
1.031% due 05/15/45 " | 17,470 | 17,508 | ||||||
1.268% due 07/15/47 " | 191,428 | 190,469 | ||||||
4.996% due 08/15/42 " § | 400,000 | 411,682 | ||||||
JPMBB Commercial Mortgage Securities Trust | ||||||||
1.085% due 07/15/45 " | 272,384 | 272,476 | ||||||
1.266% due 04/15/47 " | 224,507 | 223,483 | ||||||
1.322% due 08/15/47 " | 161,186 | 160,349 | ||||||
1.451% due 09/15/47 " | 316,509 | 315,359 | ||||||
1.650% due 09/15/47 " | 175,000 | 175,036 | ||||||
LB-UBS Commercial Mortgage Trust | ||||||||
4.954% due 09/15/30 " | 50,962 | 51,845 | ||||||
6.029% due 06/15/38 " § | 883,528 | 940,879 | ||||||
Merrill Lynch Countrywide Commercial Mortgage Trust | 636,791 | 676,734 | ||||||
Merrill Lynch Mortgage Trust | 175,000 | 187,864 | ||||||
Morgan Stanley Bank of America Merrill Lynch Trust | ||||||||
1.250% due 02/15/47 " | 200,053 | 198,869 | ||||||
1.294% due 06/15/47 " | 145,115 | 143,949 |
Principal Amount | Value | |||||||
1.308% due 08/15/46 " | $461,275 | $462,266 | ||||||
1.313% due 10/15/46 " | 445,777 | 445,277 | ||||||
1.313% due 04/15/47 " | 79,509 | 79,117 | ||||||
1.551% due 08/15/47 " | 296,477 | 295,737 | ||||||
1.686% due 10/15/47 " | 225,000 | 225,280 | ||||||
Morgan Stanley Capital I Trust | 293,529 | 311,663 | ||||||
WFRBS Commercial Mortgage Trust | ||||||||
1.193% due 03/15/47 " | 309,687 | 308,240 | ||||||
1.283% due 05/15/47 " | 368,985 | 367,734 | ||||||
1.406% due 09/15/46 " | 177,547 | 178,365 | ||||||
1.413% due 08/15/47 " | 409,761 | 408,697 | ||||||
1.479% due 09/15/57 " | 280,000 | 279,184 | ||||||
1.607% due 06/15/44 " ~ | 63,921 | 64,165 | ||||||
1.663% due 10/15/57 " | 130,000 | 130,135 | ||||||
|
| |||||||
16,355,216 | ||||||||
|
| |||||||
Collateralized Mortgage Obligations - Residential - 4.0% |
| |||||||
Alternative Loan Trust | 177,118 | 171,642 | ||||||
Deutsche Alt-A Securities Inc Mortgage Loan Trust | 209,202 | 188,000 | ||||||
DSLA Mortgage Loan Trust | 590,096 | 572,051 | ||||||
Fannie Mae | ||||||||
0.605% due 07/25/42 " § | 690,387 | 692,830 | ||||||
5.000% due 08/25/19 " | 187,466 | 196,457 | ||||||
Fosse Master Issuer PLC (United Kingdom) | 176,451 | 178,164 | ||||||
Freddie Mac | ||||||||
0.604% due 05/15/36 " § | 49,059 | 49,479 | ||||||
0.604% due 09/15/42 " § | 949,590 | 953,573 | ||||||
0.654% due 08/15/41 " § | 262,408 | 264,777 | ||||||
0.654% due 07/15/42 " § | 886,607 | 894,801 | ||||||
1.369% due 05/25/19 " | 749,342 | 750,508 | ||||||
1.426% due 08/25/17 " | 640,000 | 643,027 | ||||||
Freddie Mac Structured Agency Credit Risk Debt Notes | 415,000 | 414,312 | ||||||
Government National Mortgage Association | 2,075,223 | 2,084,690 | ||||||
HarborView Mortgage Loan Trust | 137,638 | 118,696 | ||||||
Holmes Master Issuer PLC (United Kingdom) | 494,083 | 497,287 | ||||||
JP Morgan Alternative Loan Trust | 93,995 | 89,177 | ||||||
Lanark Master Issuer PLC (United Kingdom) | 304,772 | 305,924 | ||||||
Silverstone Master Issuer PLC (United Kingdom) | 525,000 | 528,766 | ||||||
Structured Adjustable Rate Mortgage Loan Trust | 222,194 | 225,124 | ||||||
|
| |||||||
9,819,285 | ||||||||
|
| |||||||
Fannie Mae - 7.0% | ||||||||
1.936% due 01/01/35 " § | 929,852 | 980,835 | ||||||
2.352% due 09/01/34 " § | 589,848 | 633,253 | ||||||
2.485% due 11/01/34 " § | 422,942 | 454,630 | ||||||
2.586% due 09/01/35 " § | 809,602 | 870,509 | ||||||
3.000% due 01/01/27 " | 1,239,687 | 1,281,748 | ||||||
3.500% due 12/01/25 - 01/01/27 " | 2,162,677 | 2,279,932 | ||||||
4.000% due 07/01/25 - 10/01/41 " | 3,483,780 | 3,701,142 | ||||||
4.500% due 04/01/26 - 08/01/40 " | 1,975,812 | 2,122,332 | ||||||
5.000% due 07/01/19 - 07/01/41 " | 1,745,876 | 1,894,989 | ||||||
5.500% due 01/01/35 - 12/01/39 " | 2,420,734 | 2,709,631 | ||||||
6.000% due 11/01/35 - 09/01/39 " | 303,571 | 344,829 | ||||||
|
| |||||||
17,273,830 | ||||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-32
PACIFIC LIFE FUNDS
PL SHORT DURATION BOND FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
Freddie Mac - 0.7% | ||||||||
4.500% due 11/01/23 " | $1,125,824 | $1,214,199 | ||||||
5.000% due 11/01/16 - 04/01/18 " | 50,205 | 52,989 | ||||||
5.500% due 01/01/20 - 12/01/39 " | 395,933 | 440,553 | ||||||
|
| |||||||
1,707,741 | ||||||||
|
| |||||||
Government National Mortgage Association - 0.9% |
| |||||||
3.000% due 06/20/27 - 09/20/27 " | 1,026,227 | 1,070,555 | ||||||
3.500% due 03/20/26 - 03/20/43 " | 713,553 | 744,641 | ||||||
5.000% due 12/20/34 - 02/20/40 " | 155,502 | 172,983 | ||||||
6.000% due 07/15/36 " | 258,350 | 299,397 | ||||||
|
| |||||||
2,287,576 | ||||||||
|
| |||||||
Total Mortgage-Backed Securities | 47,443,648 | |||||||
|
| |||||||
ASSET-BACKED SECURITIES - 15.8% | ||||||||
Ally Auto Receivables Trust | ||||||||
0.750% due 02/21/17 " | 380,000 | 379,069 | ||||||
0.930% due 02/16/16 " | 23,508 | 23,528 | ||||||
3.150% due 10/15/18 " ~ | 135,000 | 138,979 | ||||||
Ally Master Owner Trust | ||||||||
0.954% due 02/15/17 " § | 725,000 | 726,690 | ||||||
1.000% due 02/15/18 " | 230,000 | 230,454 | ||||||
1.210% due 06/15/17 " | 1,060,000 | 1,065,293 | ||||||
American Express Credit Account Master Trust | ||||||||
0.990% due 03/15/18 " | 440,000 | 441,289 | ||||||
1.070% due 05/15/18 " ~ | 100,000 | 100,375 | ||||||
1.260% due 01/15/20 " | 420,000 | 418,637 | ||||||
1.290% due 03/15/18 " ~ | 500,000 | 501,100 | ||||||
AmeriCredit Automobile Receivables Trust | ||||||||
0.620% due 06/08/17 " | 160,806 | 160,871 | ||||||
0.960% due 04/09/18 " | 90,000 | 90,230 | ||||||
1.050% due 10/11/16 " | 73,005 | 73,051 | ||||||
1.190% due 05/08/18 " | 190,000 | 190,099 | ||||||
1.600% due 07/08/19 " | 300,000 | 297,600 | ||||||
1.730% due 02/08/17 " | 200,000 | 200,677 | ||||||
ARI Fleet Lease Trust | 470,000 | 470,412 | ||||||
Bank of America Auto Trust | 139,406 | 139,491 | ||||||
BMW Vehicle Lease Trust | 359,938 | 360,132 | ||||||
Capital Auto Receivables Asset Trust | ||||||||
0.790% due 06/20/17 " | 520,000 | 520,873 | ||||||
1.240% due 10/20/17 " | 530,000 | 533,213 | ||||||
1.260% due 05/21/18 " | 640,000 | 639,716 | ||||||
1.320% due 06/20/18 " | 310,000 | 311,246 | ||||||
1.480% due 11/20/18 " | 345,000 | 344,507 | ||||||
2.220% due 01/22/19 " | 90,000 | 90,553 | ||||||
CarMax Auto Owner Trust | ||||||||
0.520% due 07/17/17 " | 320,944 | 321,200 | ||||||
0.640% due 01/16/18 " | 1,035,000 | 1,035,169 | ||||||
1.690% due 08/15/19 " | 45,000 | 44,462 | ||||||
1.930% due 11/15/19 " | 65,000 | 64,314 | ||||||
CCG Receivables Trust | 265,000 | 264,868 | ||||||
CIT Equipment Collateral | 1,833 | 1,834 | ||||||
Citibank Credit Card Issuance Trust | 690,000 | 687,401 | ||||||
Citigroup Mortgage Loan Trust Inc | 247,928 | 235,115 | ||||||
CNH Equipment Trust | ||||||||
0.570% due 12/15/17 " | 513,642 | 514,073 | ||||||
0.690% due 06/15/18 " | 755,000 | 755,845 | ||||||
0.910% due 08/15/16 " | 14,781 | 14,786 | ||||||
0.940% due 05/15/17 " | 42,126 | 42,169 |
Principal Amount | Value | |||||||
CNH Wholesale Master Note Trust | $270,000 | $270,787 | ||||||
Diamond Resorts Owner Trust | 250,596 | 252,573 | ||||||
Enterprise Fleet Financing LLC | ||||||||
0.680% due 09/20/18 " ~ | 304,213 | 304,299 | ||||||
0.870% due 09/20/19 " ~ | 250,000 | 250,056 | ||||||
1.050% due 03/20/20 " ~ | 1,140,000 | 1,139,962 | ||||||
1.060% due 03/20/19 " ~ | 215,141 | 215,885 | ||||||
Exeter Automobile Receivables Trust | 90,145 | 90,189 | ||||||
Ford Credit Auto Lease Trust | ||||||||
1.100% due 12/15/15 " ~ | 100,000 | 100,267 | ||||||
1.100% due 11/15/17 " | 250,000 | 249,851 | ||||||
1.230% due 11/15/16 " | 285,000 | 283,944 | ||||||
1.500% due 03/15/17 " ~ | 125,000 | 125,511 | ||||||
1.510% due 08/15/17 " | 195,000 | 195,404 | ||||||
Ford Credit Floorplan Master Owner Trust | ||||||||
0.790% due 06/15/17 " | 540,000 | 541,281 | ||||||
1.400% due 08/15/19 " | 1,245,000 | 1,239,420 | ||||||
4.200% due 02/15/17 " ~ | 365,000 | 370,194 | ||||||
4.990% due 02/15/17 " ~ | 260,000 | 264,522 | ||||||
GE Dealer Floorplan Master Note Trust | ||||||||
0.534% due 07/20/19 " § | 870,000 | 870,922 | ||||||
0.554% due 04/20/18 " § | 515,000 | 516,651 | ||||||
0.594% due 10/20/17 " § | 630,000 | 631,015 | ||||||
GE Equipment Midticket LLC | 410,000 | 410,104 | ||||||
GE Equipment Small Ticket LLC | ||||||||
0.950% due 09/25/17 " ~ | 670,000 | 670,475 | ||||||
1.040% due 09/21/15 " ~ | 43,610 | 43,657 | ||||||
GreatAmerica Leasing Receivables | 400,000 | 399,627 | ||||||
GSAA Home Equity Trust | ||||||||
0.200% due 07/25/37 " § | 509,422 | 452,929 | ||||||
0.435% due 10/25/35 " § | 98,260 | 92,586 | ||||||
0.525% due 10/25/35 " § | 579,307 | 557,299 | ||||||
GSAA Trust | 346,610 | 330,162 | ||||||
Hilton Grand Vacations Trust | 298,522 | 296,083 | ||||||
Honda Auto Receivables Owner Trust | ||||||||
0.560% due 05/15/16 " | 523,170 | 523,520 | ||||||
0.770% due 01/15/16 " | 212,799 | 213,077 | ||||||
HSI Asset Securitization Corp Trust | 208,796 | 196,312 | ||||||
Huntington Auto Trust | ||||||||
0.810% due 09/15/16 " | 154,923 | 155,155 | ||||||
1.010% due 01/15/16 " ~ | 6,929 | 6,931 | ||||||
Hyundai Auto Lease Securitization Trust | 145,000 | 144,909 | ||||||
Hyundai Auto Receivables Trust | ||||||||
0.720% due 03/15/16 " | 9,666 | 9,668 | ||||||
0.730% due 06/15/18 " | 565,000 | 564,764 | ||||||
0.750% due 09/17/18 " | 215,000 | 214,467 | ||||||
0.810% due 03/15/18 " | 840,000 | 842,310 | ||||||
3.510% due 11/15/17 " | 290,000 | 298,302 | ||||||
John Deere Owner Trust | 860,000 | 858,495 | ||||||
Kubota Credit Owner Trust | 355,000 | 355,055 | ||||||
Mercedes-Benz Auto Lease Trust | ||||||||
0.620% due 07/15/16 " | 520,000 | 520,428 | ||||||
0.720% due 12/17/18 " | 240,000 | 240,323 | ||||||
MMAF Equipment Finance LLC | 805,000 | 801,868 | ||||||
Motor PLC (United Kingdom) | ||||||||
0.635% due 08/25/21 " § ~ | 321,874 | 322,383 | ||||||
0.655% due 02/25/21 " § ~ | 217,500 | 217,688 | ||||||
1.286% due 02/25/20 " ~ | 61,667 | 61,761 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-33
PACIFIC LIFE FUNDS
PL SHORT DURATION BOND FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
MVW Owner Trust | ||||||||
2.150% due 04/22/30 " ~ | $84,795 | $85,240 | ||||||
2.250% due 09/20/31 " ~ | 275,000 | 274,922 | ||||||
Navistar Financial Dealer Note Master Trust | ||||||||
0.825% due 01/25/18 " § ~ | 535,000 | 535,427 | ||||||
0.835% due 09/25/18 " § ~ | 355,000 | 355,898 | ||||||
Nissan Auto Receivables Owner Trust | ||||||||
0.460% due 10/17/16 " | 358,141 | 358,211 | ||||||
0.730% due 05/16/16 " | 186,418 | 186,636 | ||||||
Sierra Timeshare Receivables Funding LLC | ||||||||
1.590% due 11/20/29 " ~ | 103,836 | 103,958 | ||||||
2.050% due 06/20/31 " ~ | 259,580 | 258,171 | ||||||
2.070% due 03/20/30 " ~ | 347,834 | 348,905 | ||||||
2.200% due 10/20/30 " ~ | 193,489 | 193,281 | ||||||
SMART Trust (Australia) | ||||||||
0.840% due 09/14/16 " | 213,455 | 213,877 | ||||||
0.950% due 02/14/18 " | 550,000 | 549,820 | ||||||
0.970% due 03/14/17 " | 257,788 | 257,917 | ||||||
1.180% due 02/14/19 " | 580,000 | 577,912 | ||||||
1.590% due 10/14/16 " ~ | 445,747 | 447,321 | ||||||
Synchrony Credit Card Master Note Trust | ||||||||
1.030% due 01/15/18 " | 535,000 | 535,904 | ||||||
5.750% due 03/15/18 " ~ | 235,000 | 240,470 | ||||||
Toyota Auto Receivables Owner Trust | 266,352 | 266,593 | ||||||
Volkswagen Auto Lease Trust | 150,000 | 149,969 | ||||||
Volkswagen Auto Loan Enhanced Trust | 85,844 | 86,004 | ||||||
Volkswagen Credit Auto Master Trust | 615,000 | 612,852 | ||||||
Volvo Financial Equipment LLC | 255,000 | 254,426 | ||||||
Wells Fargo Home Equity Trust | 252,478 | 233,408 | ||||||
Wheels SPV LLC | ||||||||
0.840% due 03/20/23 " ~ | 295,000 | 293,999 | ||||||
1.190% due 03/20/21 " ~ | 38,943 | 38,979 | ||||||
World Omni Auto Receivables Trust | 474,460 | 475,065 | ||||||
World Omni Automobile Lease Securitization Trust | 280,000 | 279,875 | ||||||
World Omni Master Owner Trust | 655,000 | 655,843 | ||||||
|
| |||||||
Total Asset-Backed Securities | 39,013,275 | |||||||
|
| |||||||
U.S. GOVERNMENT AGENCY ISSUES - 2.5% | ||||||||
Fannie Mae | ||||||||
0.375% due 07/05/16 | 605,000 | 603,808 | ||||||
0.625% due 08/26/16 | 2,305,000 | 2,303,811 | ||||||
Federal Home Loan Bank | 440,000 | 439,248 | ||||||
Freddie Mac | 2,770,000 | 2,782,271 | ||||||
|
| |||||||
Total U.S. Government Agency Issues | 6,129,138 | |||||||
|
|
Principal Amount | Value | |||||||
U.S. TREASURY OBLIGATIONS - 8.4% | ||||||||
U.S. Treasury Inflation Protected Securities - 3.4% |
| |||||||
0.125% due 04/15/17 ^ | $4,977,363 | $5,047,160 | ||||||
0.500% due 04/15/15 ^ | 1,484,190 | 1,486,161 | ||||||
1.875% due 07/15/15 ^ | 1,965,948 | 2,010,796 | ||||||
|
| |||||||
8,544,117 | ||||||||
|
| |||||||
U.S. Treasury Notes - 5.0% | ||||||||
0.500% due 07/31/17 | 12,500,000 | 12,314,450 | ||||||
|
| |||||||
Total U.S. Treasury Obligations | 20,858,567 | |||||||
|
| |||||||
FOREIGN GOVERNMENT BONDS & NOTES - 1.6% |
| |||||||
Iceland Government International (Iceland) | 985,000 | 1,027,200 | ||||||
Mexican Bonos (Mexico) | MXN 38,855,000 | 2,935,489 | ||||||
|
| |||||||
Total Foreign Government Bonds & Notes | 3,962,689 | |||||||
|
| |||||||
MUNICIPAL BONDS - 0.3% | ||||||||
State Board of Administration Finance Corp ‘A’ FL | $575,000 | 578,002 | ||||||
University of California | 195,000 | 195,507 | ||||||
|
| |||||||
Total Municipal Bonds | 773,509 | |||||||
|
| |||||||
Shares | ||||||||
SHORT-TERM INVESTMENT - 1.3% | ||||||||
Money Market Fund - 1.3% | ||||||||
BlackRock Liquidity Funds Treasury | 3,323,877 | 3,323,877 | ||||||
|
| |||||||
Total Short-Term Investment | 3,323,877 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 99.9% | 247,470,190 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.1% | 318,227 | |||||||
|
| |||||||
NET ASSETS - 100.0% | $247,788,417 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Corporate Bonds & Notes | 50.8% | |||
Mortgage-Backed Securities | 19.2% | |||
Asset-Backed Securities | 15.8% | |||
U.S. Treasury Obligations | 8.4% | |||
Others (each less than 3.0%) | 5.7% | |||
|
| |||
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-91 |
A-34
PACIFIC LIFE FUNDS
PL SHORT DURATION BOND FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
(b) | Forward foreign currency contracts outstanding as of September 30, 2014 were as follows: |
Currency Purchased | Currency Sold | Expiration | Counterparty | Unrealized Appreciation (Depreciation) | ||||||||||||||||
MXN | 14,705,000 | USD | 1,107,513 | 11/14 | RBS | ($16,423 | ) | |||||||||||||
USD | 1,113,602 | MXN | 14,705,000 | 11/14 | RBS | 22,512 | ||||||||||||||
|
| |||||||||||||||||||
Total Forward Foreign Currency Contracts |
| $6,089 | ||||||||||||||||||
|
|
(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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Corporate Bonds & Notes | $125,965,487 | $— | $125,965,487 | $— | |||||||||||||
Mortgage-Backed Securities | 47,443,648 | — | 47,443,648 | — | ||||||||||||||
Asset-Backed Securities | 39,013,275 | — | 39,013,275 | — | ||||||||||||||
U.S. Government Agency Issues | 6,129,138 | — | 6,129,138 | — | ||||||||||||||
U.S. Treasury Obligations | 20,858,567 | — | 20,858,567 | — | ||||||||||||||
Foreign Government Bonds & Notes | 3,962,689 | — | 3,962,689 | — | ||||||||||||||
Municipal Bonds | 773,509 | — | 773,509 | — | ||||||||||||||
Short-Term Investment | 3,323,877 | 3,323,877 | — | — | ||||||||||||||
Derivatives: | ||||||||||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Forward Foreign Currency Contracts | 22,512 | — | 22,512 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Assets | 247,492,702 | 3,323,877 | 244,168,825 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Liabilities | Derivatives: | |||||||||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Forward Foreign Currency Contracts | (16,423 | ) | — | (16,423 | ) | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities | (16,423 | ) | — | (16,423 | ) | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $247,476,279 | $3,323,877 | $244,152,402 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-35
PACIFIC LIFE FUNDS
PL EMERGING MARKETS DEBT FUND
Schedule of Investments
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
CORPORATE BONDS & NOTES - 25.1% | ||||||||
Azerbaijan - 0.3% | ||||||||
State Oil Co of the Azerbaijan Republic | ||||||||
4.750% due 03/13/23 ~ | $200,000 | $197,800 | ||||||
5.450% due 02/09/17 ~ | 200,000 | 209,500 | ||||||
|
| |||||||
407,300 | ||||||||
|
| |||||||
Bangladesh - 0.2% | ||||||||
Banglalink Digital Communications Ltd | 225,000 | 237,937 | ||||||
|
| |||||||
Barbados - 0.4% | ||||||||
Columbus International Inc | 585,000 | 610,594 | ||||||
|
| |||||||
Bermuda - 1.5% | ||||||||
Digicel Group Ltd | ||||||||
7.125% due 04/01/22 ~ | 350,000 | 350,175 | ||||||
8.250% due 09/30/20 ~ | 1,090,000 | 1,128,259 | ||||||
Digicel Ltd | 395,000 | 392,037 | ||||||
Ooredoo International Finance Ltd | 410,000 | 503,787 | ||||||
|
| |||||||
2,374,258 | ||||||||
|
| |||||||
Brazil - 0.3% | ||||||||
Banco Santander Brasil SA | BRL 300,000 | 118,272 | ||||||
Banco Votorantim SA | 300,000 | 145,248 | ||||||
Itau Unibanco Holding SA | 238,000 | 96,260 | ||||||
Oi SA | 300,000 | 112,242 | ||||||
|
| |||||||
472,022 | ||||||||
|
| |||||||
Canada - 0.6% | ||||||||
Pacific Rubiales Energy Corp | ||||||||
5.125% due 03/28/23 ~ | $195,000 | 187,259 | ||||||
5.375% due 01/26/19 ~ | 120,000 | 122,100 | ||||||
5.625% due 01/19/25 ~ | 300,000 | 288,195 | ||||||
7.250% due 12/12/21 ~ | 270,000 | 294,975 | ||||||
|
| |||||||
892,529 | ||||||||
|
| |||||||
Cayman - 3.8% | ||||||||
Amber Circle Funding Ltd | 250,000 | 241,344 | ||||||
Central China Real Estate Ltd | 200,000 | 196,237 | ||||||
China Hongqiao Group Ltd | 200,000 | 206,084 | ||||||
China SCE Property Holdings Ltd | ||||||||
10.500% due 01/14/16 ~ | CNY 1,000,000 | 166,072 | ||||||
11.500% due 11/14/17 ~ | $300,000 | 316,875 | ||||||
China Shanshui Cement Group Ltd | 200,000 | 210,000 | ||||||
CIFI Holdings Group Co Ltd | 220,000 | 246,950 | ||||||
Comcel Trust | 245,000 | 259,088 | ||||||
Country Garden Holdings Co Ltd | 370,000 | 356,125 | ||||||
DEWA Sukuk Ltd | 200,000 | 206,500 | ||||||
Dubai DOF Sukuk Ltd | 50,000 | 59,500 |
Principal Amount | Value | |||||||
Dubai Holding Commercial Operations MTN Ltd | GBP 400,000 | $669,531 | ||||||
Jafz Sukuk Ltd | $250,000 | 287,700 | ||||||
Kaisa Group Holdings Ltd | ||||||||
8.875% due 03/19/18 ~ | 225,000 | 228,937 | ||||||
10.250% due 01/08/20 ~ | 225,000 | 235,125 | ||||||
KWG Property Holding Ltd | 230,000 | 228,850 | ||||||
Marfrig Overseas Ltd | 150,000 | 159,750 | ||||||
MIE Holdings Corp | 200,000 | 204,500 | ||||||
Nile Finance Ltd | 100,000 | 102,973 | ||||||
Shimao Property Holdings Ltd | 245,000 | 246,225 | ||||||
Sukuk Funding No 3 Ltd | 200,000 | 209,000 | ||||||
Sunac China Holdings Ltd | ||||||||
9.375% due 04/05/18 ~ | 300,000 | 305,640 | ||||||
12.500% due 10/16/17 ~ | 255,000 | 284,325 | ||||||
Times Property Holdings Ltd | 220,000 | 232,179 | ||||||
Yuzhou Properties Co Ltd | ||||||||
8.625% due 01/24/19 ~ | 200,000 | 197,130 | ||||||
11.750% due 10/25/17 ~ | 215,000 | 237,037 | ||||||
|
| |||||||
6,293,677 | ||||||||
|
| |||||||
Chile - 0.4% | ||||||||
Banco del Estado de Chile | 120,000 | 125,855 | ||||||
Corp Nacional del Cobre de Chile | ||||||||
3.750% due 11/04/20 ~ | 100,000 | 102,974 | ||||||
3.875% due 11/03/21 ~ | 200,000 | 205,578 | ||||||
Empresa Nacional del Petroleo | ||||||||
5.250% due 08/10/20 ~ | 100,000 | 107,280 | ||||||
6.250% due 07/08/19 ~ | 120,000 | 135,436 | ||||||
|
| |||||||
677,123 | ||||||||
|
| |||||||
Colombia - 0.5% | ||||||||
Colombia Telecomunicaciones SA ESP | 350,000 | 352,625 | ||||||
Ecopetrol SA | 50,000 | 59,610 | ||||||
Emgesa SA ESP | COP 238,000,000 | 128,085 | ||||||
Empresa de Telecomunicaciones de Bogota | 144,000,000 | 67,193 | ||||||
Empresas Publicas de Medellin ESP | 242,000,000 | 126,749 | ||||||
|
| |||||||
734,262 | ||||||||
|
| |||||||
Costa Rica - 0.1% | ||||||||
Instituto Costarricense de Electricidad | $200,000 | 213,000 | ||||||
|
| |||||||
Georgia - 0.1% | ||||||||
Georgian Railway JSC | 200,000 | 225,500 | ||||||
|
| |||||||
Hong Kong - 0.3% | ||||||||
China Railway Resources Huitung Ltd | 210,000 | 205,442 | ||||||
Gemdale International Holding Ltd | CNY 1,000,000 | 168,936 | ||||||
Industrial & Commercial Bank of China Asia Ltd | $100,000 | 106,544 | ||||||
|
| |||||||
480,922 | ||||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-36
PACIFIC LIFE FUNDS
PL EMERGING MARKETS DEBT FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
India - 0.1% | ||||||||
Export-Import Bank of India | $215,000 | $214,422 | ||||||
|
| |||||||
Indonesia - 0.3% | ||||||||
P.T. Berau Coal Energy Tbk | 240,000 | 159,600 | ||||||
P.T. Pertamina Persero | 200,000 | 192,000 | ||||||
P.T. Perusahaan Listrik Negara | 200,000 | 209,500 | ||||||
|
| |||||||
561,100 | ||||||||
|
| |||||||
Ireland - 2.0% | ||||||||
Alfa Bank OJSC | ||||||||
7.500% due 09/26/19 ~ | 420,000 | 414,265 | ||||||
7.750% due 04/28/21 ~ | 200,000 | 202,020 | ||||||
8.625% due 04/26/16 ~ | RUB 5,000,000 | 121,300 | ||||||
Brunswick Rail Finance Ltd | $200,000 | 186,500 | ||||||
Credit Bank of Moscow | 400,000 | 392,500 | ||||||
Rosneft Oil Co | 400,000 | 344,500 | ||||||
Vimpel Communications | 400,000 | 414,000 | ||||||
Vnesheconombank | ||||||||
5.450% due 11/22/17 ~ | 150,000 | 149,625 | ||||||
6.025% due 07/05/22 ~ | 200,000 | 191,250 | ||||||
6.800% due 11/22/25 ~ | 370,000 | 364,450 | ||||||
6.902% due 07/09/20 ~ | 430,000 | 436,450 | ||||||
|
| |||||||
3,216,860 | ||||||||
|
| |||||||
Kazakhstan - 2.2% | ||||||||
Development Bank of Kazakhstan JSC | 420,000 | 399,000 | ||||||
Kazkommertsbank JSC | ||||||||
6.875% due 02/13/17 | EUR 245,000 | 318,732 | ||||||
7.500% due 11/29/16 ~ | $280,000 | 283,500 | ||||||
8.000% due 11/03/15 ~ | 180,000 | 183,600 | ||||||
8.500% due 05/11/18 ~ | 260,000 | 263,250 | ||||||
KazMunayGas National Co JSC | ||||||||
4.400% due 04/30/23 ~ | 200,000 | 192,740 | ||||||
5.750% due 04/30/43 ~ | 560,000 | 527,072 | ||||||
6.375% due 04/09/21 ~ | 200,000 | 216,540 | ||||||
7.000% due 05/05/20 ~ | 410,000 | 457,970 | ||||||
9.125% due 07/02/18 ~ | 130,000 | 152,587 | ||||||
11.750% due 01/23/15 ~ | 200,000 | 206,340 | ||||||
Zhaikmunai LLP | 435,000 | 457,837 | ||||||
|
| |||||||
3,659,168 | ||||||||
|
| |||||||
Luxembourg - 2.0% | ||||||||
Cosan Luxembourg SA | BRL 300,000 | 110,305 | ||||||
Gazprom Neft OAO | ||||||||
4.375% due 09/19/22 ~ | $200,000 | 173,250 | ||||||
6.000% due 11/27/23 ~ | 200,000 | 190,020 | ||||||
Gazprom OAO | ||||||||
4.950% due 02/06/28 ~ | 300,000 | 268,500 | ||||||
8.625% due 04/28/34 ~ | 45,000 | 52,651 | ||||||
MHP SA | ||||||||
8.250% due 04/02/20 ~ | 700,000 | 600,390 | ||||||
10.250% due 04/29/15 ~ | 200,000 | 196,040 | ||||||
Millicom International Cellular SA | 275,000 | 286,687 | ||||||
Minerva Luxembourg SA | 300,000 | 346,500 |
Principal Amount | Value | |||||||
Puma International Financing SA | $400,000 | $412,100 | ||||||
Sberbank of Russia | 200,000 | 181,500 | ||||||
TMK OAO | ||||||||
6.750% due 04/03/20 ~ | 255,000 | 230,775 | ||||||
7.750% due 01/27/18 ~ | 300,000 | 302,250 | ||||||
|
| |||||||
3,350,968 | ||||||||
|
| |||||||
Malaysia - 0.2% | ||||||||
Axiata SPV1 Labuan Ltd | 100,000 | 110,605 | ||||||
Petronas Capital Ltd | ||||||||
5.250% due 08/12/19 ~ | 100,000 | 112,052 | ||||||
7.875% due 05/22/22 ~ | 115,000 | 149,818 | ||||||
|
| |||||||
372,475 | ||||||||
|
| |||||||
Mexico - 1.3% | ||||||||
America Movil SAB de CV | MXN 2,900,000 | 210,072 | ||||||
Cemex SAB de CV | ||||||||
5.700% due 01/11/25 ~ | $200,000 | 192,340 | ||||||
5.875% due 03/25/19 ~ | 200,000 | 201,500 | ||||||
6.500% due 12/10/19 ~ | 325,000 | 336,375 | ||||||
Comision Federal de Electricidad | ||||||||
4.875% due 05/26/21 ~ | 200,000 | 213,100 | ||||||
5.750% due 02/14/42 ~ | 200,000 | 212,500 | ||||||
Petroleos Mexicanos | ||||||||
5.500% due 06/27/44 | 55,000 | 56,404 | ||||||
5.750% due 03/01/18 | 60,000 | 66,600 | ||||||
6.000% due 03/05/20 | 45,000 | 51,412 | ||||||
6.500% due 06/02/41 | 310,000 | 360,127 | ||||||
7.190% due 09/12/24 ~ | MXN 1,750,000 | 131,912 | ||||||
8.000% due 05/03/19 | $110,000 | 134,145 | ||||||
|
| |||||||
2,166,487 | ||||||||
|
| |||||||
Netherlands - 3.1% | ||||||||
Ajecorp BV | 235,000 | 215,143 | ||||||
FBN Finance Co BV | ||||||||
8.000% due 07/23/21 § ~ | 200,000 | 202,250 | ||||||
8.250% due 08/07/20 § ~ | 280,000 | 287,759 | ||||||
Hyva Global BV | 200,000 | 203,740 | ||||||
Indo Energy Finance II BV | 235,000 | 183,888 | ||||||
Kazakhstan Temir Zholy Finance BV | 100,000 | 108,554 | ||||||
Majapahit Holding BV | ||||||||
7.750% due 10/17/16 ~ | 110,000 | 122,237 | ||||||
7.750% due 01/20/20 ~ | 100,000 | 116,250 | ||||||
8.000% due 08/07/19 ~ | 100,000 | 117,250 | ||||||
Marfrig Holding Europe BV | ||||||||
6.875% due 06/24/19 ~ | 200,000 | 195,100 | ||||||
8.375% due 05/09/18 ~ | 205,000 | 211,150 | ||||||
Metinvest BV | ||||||||
8.750% due 02/14/18 ~ | 700,000 | 483,000 | ||||||
10.250% due 05/20/15 ~ | 360,000 | 281,772 | ||||||
New World Resources NV | EUR 450,000 | 302,461 | ||||||
Nostrum Oil & Gas Finance BV | $200,000 | 202,000 | ||||||
Polish Television Holding BV | EUR 225,000 | 336,336 | ||||||
VimpelCom Holdings BV | ||||||||
5.950% due 02/13/23 ~ | $410,000 | 378,225 | ||||||
7.504% due 03/01/22 ~ | 525,000 | 537,469 | ||||||
9.000% due 02/13/18 ~ | RUB 5,000,000 | 119,917 | ||||||
VTR Finance BV | $500,000 | 518,750 | ||||||
|
| |||||||
5,123,251 | ||||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-37
PACIFIC LIFE FUNDS
PL EMERGING MARKETS DEBT FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
Nigeria - 0.1% | ||||||||
Access Bank PLC | $200,000 | $208,000 | ||||||
|
| |||||||
Paraguay - 0.1% | ||||||||
Telefonica Celular del Paraguay SA | 225,000 | 234,113 | ||||||
|
| |||||||
Philippines - 0.4% | ||||||||
Development Bank of the Philippines | 200,000 | 220,500 | ||||||
Petron Corp | PHP 5,000,000 | 117,134 | ||||||
Power Sector Assets & Liabilities Management Corp | ||||||||
7.250% due 05/27/19 ~ | $100,000 | 119,000 | ||||||
7.390% due 12/02/24 ~ | 200,000 | 255,500 | ||||||
|
| |||||||
712,134 | ||||||||
|
| |||||||
Singapore - 0.2% | ||||||||
Berau Capital Resources Pte Ltd | 100,000 | 78,000 | ||||||
Yanlord Land Group Ltd | 200,000 | 217,500 | ||||||
|
| |||||||
295,500 | ||||||||
|
| |||||||
South Africa - 0.4% | ||||||||
Edcon Proprietary Ltd | ||||||||
9.500% due 03/01/18 ~ | EUR 275,000 | 291,766 | ||||||
9.500% due 03/01/18 ~ | 225,000 | 236,586 | ||||||
Transnet SOC Ltd | ZAR 2,200,000 | 193,928 | ||||||
|
| |||||||
722,280 | ||||||||
|
| |||||||
Spain - 0.2% | ||||||||
CEMEX Espana SA | $210,000 | 234,150 | ||||||
|
| |||||||
Turkey - 0.1% | ||||||||
Turkiye Garanti Bankasi AS | TRY 300,000 | 117,865 | ||||||
|
| |||||||
United Arab Emirates - 0.4% | ||||||||
Anka a Sukuk Ltd | AED 500,000 | 151,622 | ||||||
Dolphin Energy Ltd | $61,750 | 67,925 | ||||||
Dubai Electricity & Water Authority | 100,000 | 122,000 | ||||||
Emirates Airline | ||||||||
4.500% due 02/06/25 ~ | 100,000 | 99,500 | ||||||
5.125% due 06/08/16 ~ | 200,000 | 210,872 | ||||||
|
| |||||||
651,919 | ||||||||
|
| |||||||
United Kingdom - 2.6% | ||||||||
Arcos Dorados Holdings Inc | BRL 250,000 | 97,028 | ||||||
Ferrexpo Finance PLC | $400,000 | 367,000 | ||||||
Franshion Development Ltd | 200,000 | 207,500 | ||||||
Genel Energy Finance PLC | 200,000 | 198,500 |
Principal Amount | Value | |||||||
Oschadbank | ||||||||
8.250% due 03/10/16 ~ | $200,000 | $158,040 | ||||||
8.875% due 03/20/18 ~ | 200,000 | 153,540 | ||||||
Sea Trucks Group | 445,000 | 421,081 | ||||||
Sinochem Overseas Capital Co Ltd | 200,000 | 212,106 | ||||||
Sinopec Group Overseas Development Ltd | 200,000 | 210,453 | ||||||
Trillion Chance Ltd | 200,000 | 195,716 | ||||||
Tullow Oil PLC | 235,000 | 236,187 | ||||||
Ukreximbank | 240,000 | 184,248 | ||||||
Vedanta Resources PLC | ||||||||
6.000% due 01/31/19 ~ | 315,000 | 319,725 | ||||||
7.125% due 05/31/23 ~ | 315,000 | 324,056 | ||||||
8.250% due 06/07/21 ~ | 240,000 | 265,650 | ||||||
9.500% due 07/18/18 ~ | 350,000 | 402,500 | ||||||
Yingde Gases Investment Ltd | 225,000 | 230,062 | ||||||
|
| |||||||
4,183,392 | ||||||||
|
| |||||||
United States - 0.3% | ||||||||
Cemex Finance LLC | 440,000 | 498,300 | ||||||
|
| |||||||
Venezuela - 0.6% | ||||||||
Petroleos de Venezuela SA | ||||||||
4.900% due 10/28/14 | 740,722 | 727,759 | ||||||
5.250% due 04/12/17 ~ | 87,000 | 60,900 | ||||||
5.375% due 04/12/27 ~ | 76,000 | 38,076 | ||||||
9.750% due 05/17/35 ~ | 236,000 | 150,450 | ||||||
12.750% due 02/17/22 ~ | 90,000 | 75,263 | ||||||
|
| |||||||
1,052,448 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes | 41,193,956 | |||||||
|
| |||||||
SENIOR LOAN NOTES - 1.1% | ||||||||
Dubai - 1.1% | ||||||||
Dubai World International | ||||||||
Term A | ||||||||
1.000% due 09/30/15 § | 458,613 | 375,298 | ||||||
Term B | ||||||||
1.000% PIK due 09/30/18 § | 1,724,311 | 1,411,061 | ||||||
|
| |||||||
1,786,359 | ||||||||
|
| |||||||
Total Senior Loan Notes | 1,786,359 | |||||||
|
| |||||||
FOREIGN GOVERNMENT BONDS & NOTES - 57.1% |
| |||||||
Argentina - 0.6% | ||||||||
Argentina Boden | 685,100 | 640,568 | ||||||
Argentine Republic Government | ||||||||
2.500% due 12/31/38 | 622,217 | 337,553 | ||||||
8.280% due 12/31/33 W | 42,221 | 35,677 | ||||||
8.750% due 06/02/17 | 8,777 | 7,790 | ||||||
|
| |||||||
1,021,588 | ||||||||
|
| |||||||
Azerbaijan - 0.1% | ||||||||
Republic of Azerbaijan | 200,000 | 205,000 | ||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-38
PACIFIC LIFE FUNDS
PL EMERGING MARKETS DEBT FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
Belarus - 0.7% | ||||||||
Republic of Belarus | ||||||||
8.750% due 08/03/15 ~ | $560,000 | $574,112 | ||||||
8.950% due 01/26/18 ~ | 560,000 | 598,500 | ||||||
|
| |||||||
1,172,612 | ||||||||
|
| |||||||
Bolivia - 0.1% | ||||||||
Bolivian Government | 100,000 | 102,750 | ||||||
|
| |||||||
Brazil - 7.4% | ||||||||
Banco Nacional de Desenvolvimento Economico e Social | 170,000 | 191,887 | ||||||
Brazil Letras do Tesouro Nacional | BRL 9,380,000 | 2,943,563 | ||||||
Brazil Notas do Tesouro Nacional ‘F’ | ||||||||
10.000% due 01/01/21 | 4,023,000 | 1,533,237 | ||||||
10.000% due 01/01/23 | 10,430,000 | 3,901,666 | ||||||
10.000% due 01/01/25 | 7,490,000 | 2,744,193 | ||||||
Brazilian Government | ||||||||
2.625% due 01/05/23 | $200,000 | 180,500 | ||||||
4.250% due 01/07/25 | 375,000 | 371,719 | ||||||
4.875% due 01/22/21 | 100,000 | 106,800 | ||||||
5.875% due 01/15/19 | 90,000 | 101,700 | ||||||
8.875% due 04/15/24 | 50,000 | 68,375 | ||||||
|
| |||||||
12,143,640 | ||||||||
|
| |||||||
Chile - 0.1% | ||||||||
Chile Government | CLP 60,000,000 | 109,378 | ||||||
|
| |||||||
Colombia - 3.8% | ||||||||
Colombia Government | ||||||||
4.375% due 03/21/23 | COP 38,000,000 | 16,260 | ||||||
6.125% due 01/18/41 | $340,000 | 400,010 | ||||||
6.125% due 01/18/41 | 190,000 | 223,535 | ||||||
7.375% due 01/27/17 | 100,000 | 113,500 | ||||||
7.375% due 03/18/19 | 240,000 | 287,400 | ||||||
7.375% due 09/18/37 | 200,000 | 268,500 | ||||||
7.750% due 04/14/21 | COP 772,000,000 | 415,737 | ||||||
8.125% due 05/21/24 | $240,000 | 319,200 | ||||||
9.850% due 06/28/27 | COP 227,000,000 | 141,985 | ||||||
11.750% due 02/25/20 | $202,000 | 287,850 | ||||||
12.000% due 10/22/15 | COP 305,000,000 | 161,500 | ||||||
Colombian TES | ||||||||
6.000% due 04/28/28 | 2,133,900,000 | 943,766 | ||||||
7.000% due 09/11/19 | 595,900,000 | 307,241 | ||||||
7.000% due 05/04/22 | 2,958,900,000 | 1,488,411 | ||||||
7.500% due 08/26/26 | 784,400,000 | 398,910 | ||||||
10.000% due 07/24/24 | 799,400,000 | 482,590 | ||||||
|
| |||||||
6,256,395 | ||||||||
|
| |||||||
Costa Rica - 0.3% | ||||||||
Costa Rica Government | ||||||||
4.250% due 01/26/23 ~ | $200,000 | 185,500 | ||||||
4.375% due 04/30/25 ~ | 290,000 | 264,625 | ||||||
5.625% due 04/30/43 ~ | 90,000 | 77,850 | ||||||
|
| |||||||
527,975 | ||||||||
|
| |||||||
Croatia - 0.7% | ||||||||
Croatia Government | ||||||||
6.250% due 04/27/17 ~ | 200,000 | 213,000 | ||||||
6.375% due 03/24/21 ~ | 240,000 | 261,600 | ||||||
6.625% due 07/14/20 ~ | 350,000 | 386,750 | ||||||
6.750% due 11/05/19 ~ | 200,000 | 221,500 | ||||||
|
| |||||||
1,082,850 | ||||||||
|
|
Principal Amount | Value | |||||||
Dominican Republic - 0.5% | ||||||||
Dominican Republic | ||||||||
5.875% due 04/18/24 ~ | $160,000 | $165,600 | ||||||
6.600% due 01/28/24 ~ | 100,000 | 107,500 | ||||||
7.450% due 04/30/44 ~ | 130,000 | 140,400 | ||||||
7.500% due 05/06/21 ~ | 350,000 | 395,500 | ||||||
|
| |||||||
809,000 | ||||||||
|
| |||||||
Ecuador - 0.3% | ||||||||
Ecuador Government | ||||||||
7.950% due 06/20/24 ~ | 400,000 | 418,000 | ||||||
9.375% due 12/15/15 ~ | 100,000 | 105,500 | ||||||
|
| |||||||
523,500 | ||||||||
|
| |||||||
Egypt - 0.2% | ||||||||
Egypt Government | 300,000 | 315,810 | ||||||
|
| |||||||
El Salvador - 0.3% | ||||||||
El Salvador Government | ||||||||
5.875% due 01/30/25 ~ | 165,000 | 162,938 | ||||||
6.375% due 01/18/27 ~ | 30,000 | 30,150 | ||||||
7.650% due 06/15/35 ~ | 195,000 | 208,163 | ||||||
8.250% due 04/10/32 ~ | 50,000 | 58,125 | ||||||
|
| |||||||
459,376 | ||||||||
|
| |||||||
Gabon - 0.3% | ||||||||
Gabonese Republic | 400,000 | 428,000 | ||||||
|
| |||||||
Georgia - 0.1% | ||||||||
Georgia Government | 200,000 | 224,000 | ||||||
|
| |||||||
Guatemala - 0.1% | ||||||||
Guatemala Government | 200,000 | 205,500 | ||||||
|
| |||||||
Hungary - 2.5% | ||||||||
Hungary Government | ||||||||
4.125% due 02/19/18 | 264,000 | 273,406 | ||||||
4.750% due 02/03/15 | 81,000 | 82,064 | ||||||
5.375% due 02/21/23 | 480,000 | 508,800 | ||||||
5.375% due 03/25/24 | 254,000 | 268,605 | ||||||
5.750% due 11/22/23 | 500,000 | 544,375 | ||||||
6.000% due 11/24/23 | HUF 77,750,000 | 350,949 | ||||||
6.250% due 01/29/20 | $316,000 | 352,735 | ||||||
6.500% due 06/24/19 | HUF 36,920,000 | 168,597 | ||||||
6.750% due 11/24/17 | 145,800,000 | 664,088 | ||||||
7.000% due 06/24/22 | 62,840,000 | 299,494 | ||||||
7.625% due 03/29/41 | $416,000 | 532,480 | ||||||
|
| |||||||
4,045,593 | ||||||||
|
| |||||||
Indonesia - 2.4% | ||||||||
Indonesia Government | ||||||||
4.875% due 05/05/21 ~ | 200,000 | 209,000 | ||||||
5.875% due 03/13/20 ~ | 100,000 | 110,125 | ||||||
6.875% due 01/17/18 ~ | 375,000 | 424,219 | ||||||
11.625% due 03/04/19 ~ | 200,000 | 267,000 | ||||||
Indonesia Treasury | ||||||||
5.250% due 05/15/18 | IDR 1,414,000,000 | 105,784 | ||||||
6.250% due 04/15/17 | 3,557,000,000 | 282,532 | ||||||
6.625% due 05/15/33 | 2,830,000,000 | 183,774 | ||||||
7.000% due 05/15/27 | 1,249,000,000 | 89,157 | ||||||
8.375% due 03/15/24 | 6,346,000,000 | 518,851 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-39
PACIFIC LIFE FUNDS
PL EMERGING MARKETS DEBT FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
8.375% due 03/15/34 | IDR 6,439,000,000 | $500,624 | ||||||
9.000% due 03/15/29 | 10,289,000,000 | 861,316 | ||||||
10.500% due 08/15/30 | 1,249,000,000 | 117,719 | ||||||
Perusahaan Penerbit SBSN Indonesia | $200,000 | 221,500 | ||||||
|
| |||||||
3,891,601 | ||||||||
|
| |||||||
Iraq - 0.1% | ||||||||
Republic of Iraq | 280,000 | 252,700 | ||||||
|
| |||||||
Ivory Coast - 1.1% | ||||||||
Ivory Coast Government | ||||||||
5.375% due 07/23/24 ~ | 390,000 | 373,913 | ||||||
5.750% due 12/31/32 § ~ | 1,500,000 | 1,438,125 | ||||||
|
| |||||||
1,812,038 | ||||||||
|
| |||||||
Kazakhstan - 0.1% | ||||||||
Kazatomprom Natsionalnaya Atomnaya Kompaniya AO | 100,000 | 102,819 | ||||||
|
| |||||||
Kenya - 0.1% | ||||||||
Kenya Government | 200,000 | 210,900 | ||||||
|
| |||||||
Latvia - 0.2% | ||||||||
Republic of Latvia | 300,000 | 295,875 | ||||||
|
| |||||||
Lebanon - 1.2% | ||||||||
Lebanon Government | ||||||||
4.100% due 06/12/15 ~ | 188,000 | 189,230 | ||||||
5.150% due 11/12/18 ~ | 50,000 | 50,500 | ||||||
5.450% due 11/28/19 ~ | 100,000 | 101,395 | ||||||
6.000% due 01/27/23 ~ | 70,000 | 70,805 | ||||||
6.100% due 10/04/22 ~ | 463,000 | 473,418 | ||||||
6.375% due 03/09/20 | 259,000 | 271,950 | ||||||
6.600% due 11/27/26 ~ | 490,000 | 503,475 | ||||||
8.250% due 04/12/21 ~ | 274,000 | 316,141 | ||||||
|
| |||||||
1,976,914 | ||||||||
|
| |||||||
Lithuania - 0.7% | ||||||||
Lithuania Government | ||||||||
5.125% due 09/14/17 ~ | 100,000 | 109,750 | ||||||
6.125% due 03/09/21 ~ | 290,000 | 336,037 | ||||||
6.625% due 02/01/22 ~ | 200,000 | 238,750 | ||||||
7.375% due 02/11/20 ~ | 380,000 | 459,800 | ||||||
|
| |||||||
1,144,337 | ||||||||
|
| |||||||
Malaysia - 2.6% | ||||||||
Malaysia Government | ||||||||
3.394% due 03/15/17 | MYR 2,082,000 | 633,523 | ||||||
3.418% due 08/15/22 | 1,500,000 | 443,509 | ||||||
3.492% due 03/31/20 | 1,740,000 | 523,743 | ||||||
3.502% due 05/31/27 | 140,000 | 39,747 | ||||||
3.580% due 09/28/18 | 1,390,000 | 423,753 | ||||||
3.654% due 10/31/19 | 2,019,000 | 614,740 | ||||||
4.012% due 09/15/17 | 1,745,000 | 538,740 | ||||||
4.048% due 09/30/21 | 1,212,000 | 374,857 | ||||||
4.160% due 07/15/21 | 728,000 | 226,063 | ||||||
4.181% due 07/15/24 | 433,000 | 134,721 | ||||||
4.378% due 11/29/19 | 219,000 | 68,851 | ||||||
4.392% due 04/15/26 | 380,000 | 118,705 |
Principal Amount | Value | |||||||
4.498% due 04/15/30 | MYR 140,000 | $44,080 | ||||||
5.248% due 09/15/28 | 180,000 | 60,644 | ||||||
|
| |||||||
4,245,676 | ||||||||
|
| |||||||
Mexico - 3.7% | ||||||||
Mexican Bonos | ||||||||
7.500% due 06/03/27 | MXN 13,070,000 | 1,066,505 | ||||||
7.750% due 05/29/31 | 12,280,000 | 1,011,623 | ||||||
7.750% due 11/13/42 | 3,350,000 | 273,908 | ||||||
8.500% due 05/31/29 | 12,210,000 | 1,073,807 | ||||||
8.500% due 11/18/38 | 3,160,000 | 279,115 | ||||||
10.000% due 12/05/24 | 2,020,000 | 194,580 | ||||||
10.000% due 11/20/36 | 4,700,000 | 474,053 | ||||||
Mexican Udibonos | 8,700,100 | 693,008 | ||||||
Mexico Government | ||||||||
4.750% due 03/08/44 | $170,000 | 169,575 | ||||||
5.750% due 10/12/10 | 120,000 | 124,500 | ||||||
5.950% due 03/19/19 | 180,000 | 205,920 | ||||||
6.050% due 01/11/40 | 112,000 | 132,720 | ||||||
6.750% due 09/27/34 | 340,000 | 433,500 | ||||||
|
| |||||||
6,132,814 | ||||||||
|
| |||||||
Morocco - 0.3% | ||||||||
Morocco Government | ||||||||
4.250% due 12/11/22 ~ | 300,000 | 299,310 | ||||||
5.500% due 12/11/42 ~ | 200,000 | 200,000 | ||||||
|
| |||||||
499,310 | ||||||||
|
| |||||||
Nigeria - 0.1% | ||||||||
Nigeria Government | NGN 30,160,000 | 210,853 | ||||||
|
| |||||||
Pakistan - 0.6% | ||||||||
Pakistan Government | ||||||||
6.875% due 06/01/17 ~ | $150,000 | 154,125 | ||||||
7.125% due 03/31/16 ~ | 100,000 | 101,770 | ||||||
7.250% due 04/15/19 ~ | 400,000 | 405,500 | ||||||
8.250% due 04/15/24 ~ | 400,000 | 402,000 | ||||||
|
| |||||||
1,063,395 | ||||||||
|
| |||||||
Panama - 0.4% | ||||||||
Panama Government | ||||||||
4.300% due 04/29/53 | 40,000 | 34,700 | ||||||
6.700% due 01/26/36 | 270,000 | 332,775 | ||||||
8.875% due 09/30/27 | 90,000 | 128,925 | ||||||
9.375% due 04/01/29 | 70,000 | 104,125 | ||||||
|
| |||||||
600,525 | ||||||||
|
| |||||||
Paraguay - 0.1% | ||||||||
Republic of Paraguay | 200,000 | 204,700 | ||||||
|
| |||||||
Peru - 1.2% | ||||||||
Peruvian Government | ||||||||
6.850% due 02/12/42 ~ | PEN 188,000 | 65,823 | ||||||
6.900% due 08/12/37 ~ | 769,000 | 269,218 | ||||||
6.950% due 08/12/31 ~ | 106,000 | 38,181 | ||||||
7.125% due 03/30/19 | $40,000 | 47,800 | ||||||
7.350% due 07/21/25 | 408,000 | 533,460 | ||||||
8.200% due 08/12/26 ~ | PEN 1,317,000 | 543,833 | ||||||
8.750% due 11/21/33 | $290,000 | 442,250 | ||||||
|
| |||||||
1,940,565 | ||||||||
|
| |||||||
Philippines - 1.2% | ||||||||
Philippine Government | ||||||||
3.900% due 11/26/22 | PHP 10,000,000 | 220,322 | ||||||
4.000% due 01/15/21 | $380,000 | 401,375 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-40
PACIFIC LIFE FUNDS
PL EMERGING MARKETS DEBT FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
4.950% due 01/15/21 | PHP 5,000,000 | $116,846 | ||||||
6.250% due 01/14/36 | 10,000,000 | 239,820 | ||||||
7.750% due 01/14/31 | $320,000 | 446,000 | ||||||
9.500% due 02/02/30 | 297,000 | 464,434 | ||||||
10.625% due 03/16/25 | 100,000 | 157,500 | ||||||
|
| |||||||
2,046,297 | ||||||||
|
| |||||||
Poland - 2.4% | ||||||||
Poland Government | ||||||||
2.750% due 08/25/23 ^ | PLN 294,795 | 97,937 | ||||||
3.000% due 08/24/16 ^ | 515,886 | 161,246 | ||||||
3.000% due 03/17/23 | $38,000 | 36,836 | ||||||
3.250% due 07/25/25 | PLN 1,193,000 | 367,260 | ||||||
4.000% due 10/25/23 | 1,475,000 | 481,287 | ||||||
4.750% due 04/25/17 | 171,000 | 55,130 | ||||||
5.000% due 03/23/22 | $139,000 | 153,074 | ||||||
5.250% due 10/25/20 | PLN 496,000 | 172,390 | ||||||
5.500% due 10/25/19 | 1,021,000 | 353,951 | ||||||
5.750% due 10/25/21 | 1,104,000 | 397,094 | ||||||
5.750% due 09/23/22 | 3,079,000 | 1,119,403 | ||||||
5.750% due 04/25/29 | 210,000 | 81,734 | ||||||
6.375% due 07/15/19 | $336,000 | 395,640 | ||||||
|
| |||||||
3,872,982 | ||||||||
|
| |||||||
Romania - 1.2% | ||||||||
Romania Government | ||||||||
4.375% due 08/22/23 ~ | 604,000 | 620,761 | ||||||
4.750% due 06/24/19 | RON 110,000 | 33,338 | ||||||
5.600% due 11/28/18 | 110,000 | 34,437 | ||||||
5.750% due 04/29/20 | 340,000 | 106,735 | ||||||
5.900% due 07/26/17 | 720,000 | 222,498 | ||||||
5.950% due 06/11/21 | 60,000 | 19,287 | ||||||
6.125% due 01/22/44 ~ | $70,000 | 80,611 | ||||||
6.750% due 02/07/22 ~ | 682,000 | 809,023 | ||||||
|
| |||||||
1,926,690 | ||||||||
|
| |||||||
Russia - 1.9% | ||||||||
Russian Federal | ||||||||
6.200% due 01/31/18 | RUB 6,065,000 | 140,765 | ||||||
6.400% due 05/27/20 | 12,112,000 | 274,410 | ||||||
6.700% due 05/15/19 | 3,982,000 | 91,054 | ||||||
6.800% due 12/11/19 | 11,438,000 | 263,014 | ||||||
7.000% due 01/25/23 | 10,450,000 | 231,164 | ||||||
7.000% due 08/16/23 | 3,521,000 | 77,416 | ||||||
7.050% due 01/19/28 | 13,072,000 | 276,653 | ||||||
7.400% due 06/14/17 | 10,263,000 | 248,307 | ||||||
7.500% due 03/15/18 | 6,121,000 | 147,243 | ||||||
7.500% due 02/27/19 | 13,077,000 | 310,412 | ||||||
7.600% due 04/14/21 | 21,295,000 | 498,278 | ||||||
7.600% due 07/20/22 | 7,183,000 | 165,806 | ||||||
8.150% due 02/03/27 | 4,094,000 | 96,053 | ||||||
Russian Foreign | $242,490 | 272,251 | ||||||
|
| |||||||
3,092,826 | ||||||||
|
| |||||||
Senegal - 0.1% | ||||||||
Senegal Government | 200,000 | 234,000 | ||||||
|
| |||||||
Serbia - 0.5% | ||||||||
Republic of Serbia | ||||||||
5.875% due 12/03/18 ~ | 200,000 | 209,500 | ||||||
7.250% due 09/28/21 ~ | 600,000 | 671,628 | ||||||
|
| |||||||
881,128 | ||||||||
|
| |||||||
South Africa - 5.6% | ||||||||
South Africa Government | ||||||||
5.500% due 03/09/20 | 300,000 | 324,375 | ||||||
5.875% due 05/30/22 | 300,000 | 333,000 |
Principal Amount | Value | |||||||
6.250% due 03/31/36 | ZAR 4,408,300 | $293,608 | ||||||
6.500% due 02/28/41 | 3,728,340 | 248,895 | ||||||
6.875% due 05/27/19 | $310,000 | 353,437 | ||||||
7.000% due 02/28/31 | ZAR 17,901,030 | 1,349,448 | ||||||
7.750% due 02/28/23 | 15,570,960 | 1,349,686 | ||||||
8.000% due 12/21/18 | 14,224,240 | 1,282,378 | ||||||
8.000% due 01/31/30 | 4,891,330 | 407,360 | ||||||
8.250% due 09/15/17 | 17,159,350 | 1,563,391 | ||||||
8.500% due 01/31/37 | 1,800,000 | 152,948 | ||||||
8.750% due 02/28/48 | 2,068,000 | 178,945 | ||||||
10.500% due 12/21/26 | 12,893,010 | 1,331,334 | ||||||
|
| |||||||
9,168,805 | ||||||||
|
| |||||||
Sri Lanka - 0.2% | ||||||||
Sri Lanka Government | $240,000 | 256,200 | ||||||
|
| |||||||
Thailand - 2.1% | ||||||||
Thailand Government | ||||||||
1.200% due 07/14/21 ^ ~ | THB 14,741,611 | 444,035 | ||||||
1.250% due 03/12/28 ^ ~ | 6,606,912 | 188,633 | ||||||
3.625% due 06/16/23 | 27,973,000 | 880,333 | ||||||
3.650% due 12/17/21 | 12,110,000 | 384,100 | ||||||
3.875% due 06/13/19 | 48,140,000 | 1,548,294 | ||||||
|
| |||||||
3,445,395 | ||||||||
|
| |||||||
Turkey - 4.7% | ||||||||
Turkey Government | ||||||||
3.000% due 02/23/22 ^ | TRY 2,181,007 | 1,018,867 | ||||||
4.000% due 04/01/20 ^ | 947,482 | 460,308 | ||||||
4.875% due 04/16/43 | $200,000 | 181,400 | ||||||
5.625% due 03/30/21 | 100,000 | 106,750 | ||||||
5.750% due 03/22/24 | 200,000 | 213,340 | ||||||
6.750% due 04/03/18 | 570,000 | 632,700 | ||||||
6.750% due 05/30/40 | 110,000 | 125,153 | ||||||
6.875% due 03/17/36 | 190,000 | 218,510 | ||||||
7.000% due 09/26/16 | 110,000 | 120,531 | ||||||
7.000% due 03/11/19 | 100,000 | 112,375 | ||||||
7.000% due 06/05/20 | 25,000 | 28,408 | ||||||
7.100% due 03/08/23 | TRY 1,832,550 | 686,235 | ||||||
7.375% due 02/05/25 | $295,000 | 351,050 | ||||||
7.500% due 07/14/17 | 120,000 | 134,850 | ||||||
7.500% due 11/07/19 | 100,000 | 115,150 | ||||||
8.300% due 06/20/18 | TRY 1,409,550 | 594,704 | ||||||
8.500% due 09/14/22 | 1,258,320 | 514,316 | ||||||
8.800% due 09/27/23 | 1,466,580 | 608,458 | ||||||
9.000% due 07/24/24 | 600,000 | 252,619 | ||||||
9.500% due 01/12/22 | 978,590 | 426,203 | ||||||
10.400% due 03/27/19 | 1,197,390 | 541,746 | ||||||
10.400% due 03/20/24 | 560,000 | 256,441 | ||||||
|
| |||||||
7,700,114 | ||||||||
|
| |||||||
Ukraine - 0.9% | ||||||||
Ukraine Government | ||||||||
7.500% due 04/17/23 ~ | $460,000 | 388,217 | ||||||
7.750% due 09/23/20 ~ | 100,000 | 86,145 | ||||||
7.800% due 11/28/22 ~ | 300,000 | 258,810 | ||||||
7.950% due 02/23/21 ~ | 200,000 | 171,250 | ||||||
9.250% due 07/24/17 ~ | 650,000 | 574,437 | ||||||
|
| |||||||
1,478,859 | ||||||||
|
| |||||||
United Arab Emirates - 0.1% | ||||||||
Emirate of Dubai Government | 200,000 | 187,000 | ||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-41
PACIFIC LIFE FUNDS
PL EMERGING MARKETS DEBT FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal Amount | Value | |||||||
Uruguay - 1.2% | ||||||||
Uruguay Government | ||||||||
3.700% due 06/26/37 ^ | UYU 3,972,231 | $166,661 | ||||||
4.125% due 11/20/45 | $177,374 | 151,211 | ||||||
4.250% due 04/05/27 ^ | UYU 6,918,273 | 309,215 | ||||||
4.375% due 12/15/28 ^ | 7,101,194 | 323,063 | ||||||
4.500% due 08/14/24 ^ | $329,235 | 345,697 | ||||||
5.000% due 09/14/18 ^ | UYU 1,103,648 | 48,549 | ||||||
7.625% due 03/21/36 | $162,000 | 215,865 | ||||||
7.875% PIK due 01/15/33 | 258,000 | 347,010 | ||||||
|
| |||||||
1,907,271 | ||||||||
|
| |||||||
Venezuela - 1.7% | ||||||||
Venezuela Government | ||||||||
5.750% due 02/26/16 ~ | 50,000 | 42,750 | ||||||
6.000% due 12/09/20 ~ | 62,000 | 38,595 | ||||||
7.650% due 04/21/25 | 70,000 | 43,400 | ||||||
7.750% due 10/13/19 ~ | 215,000 | 149,962 | ||||||
8.250% due 10/13/24 ~ | 107,000 | 68,748 | ||||||
8.500% due 10/08/14 | 316,000 | 312,682 | ||||||
9.000% due 05/07/23 ~ | 200,000 | 136,000 | ||||||
9.250% due 09/15/27 | 185,000 | 128,113 | ||||||
9.250% due 05/07/28 ~ | 219,000 | 145,088 | ||||||
11.750% due 10/21/26 ~ | 952,700 | 741,201 | ||||||
11.950% due 08/05/31 ~ | 1,035,300 | 799,769 | ||||||
12.750% due 08/23/22 ~ | 237,000 | 198,488 | ||||||
|
| |||||||
2,804,796 | ||||||||
|
| |||||||
Vietnam - 0.3% | ||||||||
Vietnam Government | ||||||||
6.750% due 01/29/20 ~ | 300,000 | 340,875 | ||||||
6.875% due 01/15/16 ~ | 100,000 | 106,375 | ||||||
|
| |||||||
447,250 | ||||||||
|
| |||||||
Total Foreign Government Bonds & Notes | 93,667,602 | |||||||
|
| |||||||
SHORT-TERM INVESTMENTS - 15.3% | ||||||||
Foreign Government Issues - 0.5% | ||||||||
Nigeria OMO Bills (Nigeria) | ||||||||
10.731% due 11/27/14 | NGN 52,900,000 | 318,706 | ||||||
Nigeria Treasury Bills (Nigeria) | ||||||||
10.858% due 10/09/14 | 36,000,000 | 219,272 | ||||||
10.031% due 10/23/14 | 26,300,000 | 159,545 | ||||||
10.411% due 11/06/14 | 33,100,000 | 199,968 | ||||||
|
| |||||||
897,491 | ||||||||
|
|
Shares | Value | |||||||
Money Market Fund - 14.8% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 24,324,620 | $24,324,620 | ||||||
|
| |||||||
Total Short-Term Investments | 25,222,111 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 98.6% | 161,870,028 | |||||||
OTHER ASSETS & LIABILITIES, NET - 1.4% | 2,249,110 | |||||||
|
| |||||||
NET ASSETS - 100.0% | $164,119,138 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Foreign Government Bonds & Notes | 57.1% | |||
Corporate Bonds & Notes | 25.1% | |||
Short-Term Investments | 15.3% | |||
Others (each less than 3.0%) | 1.1% | |||
|
| |||
98.6% | ||||
Other Assets & Liabilities, Net | 1.4% | |||
|
| |||
100.0% | ||||
|
|
(b) | Investments reflect the stated coupon rate or for discounted investments or zero coupon bonds, the annualized effective yield on the date of purchase. |
(c) | An investment with a value of $35,677 or less than 0.1% of the fund’s net assets was in default as of September 30, 2014. |
(d) | Forward foreign currency contracts outstanding as of September 30, 2014 were as follows: |
Currency Purchased | Currency Sold | Expiration | Counterparty | Unrealized Appreciation (Depreciation) | ||||||||||||||||
BRL | 5,156,754 | USD | 2,135,302 | 10/14 | BRC | ($29,782 | ) | |||||||||||||
BRL | 3,044,547 | USD | 1,332,114 | 10/14 | HSB | (89,016 | ) | |||||||||||||
BRL | 673,648 | USD | 288,500 | 10/14 | MER | (13,448 | ) | |||||||||||||
BRL | 3,313,974 | USD | 1,340,000 | 11/14 | BNP | 460 | ||||||||||||||
BRL | 1,165,600 | USD | 470,000 | 11/14 | BRC | 1,470 | ||||||||||||||
BRL | 953,238 | USD | 390,000 | 11/14 | MSC | (4,427 | ) | |||||||||||||
CLP | 48,241,215 | USD | 81,180 | 10/14 | BNP | (748 | ) | |||||||||||||
CLP | 243,624,137 | USD | 425,396 | 10/14 | DUB | (19,203 | ) | |||||||||||||
CLP | 1,088,088,750 | USD | 1,845,000 | 10/14 | GSC | (26,958 | ) | |||||||||||||
CLP | 72,298,372 | USD | 125,370 | 10/14 | MER | (4,827 | ) | |||||||||||||
CLP | 54,029,700 | USD | 90,000 | 10/14 | MER | 83 | ||||||||||||||
CLP | 33,270,000 | USD | 56,843 | 10/14 | SCB | (1,372 | ) | |||||||||||||
CLP | 1,088,088,750 | USD | 1,799,237 | 01/15 | UBS | 719 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-42
PACIFIC LIFE FUNDS
PL EMERGING MARKETS DEBT FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Currency Purchased | Currency Sold | Expiration | Counterparty | Unrealized Appreciation (Depreciation) | ||||||||||||||||
CNH | 8,448,820 | USD | 1,365,000 | 03/15 | HSB | ($13,418 | ) | |||||||||||||
CNH | 3,847,871 | USD | 608,455 | 03/15 | HSB | 7,100 | ||||||||||||||
CNH | 5,632,467 | USD | 903,413 | 03/15 | SCB | (3,256 | ) | |||||||||||||
CNH | 12,427,231 | USD | 1,950,616 | 03/17 | HSB | (16,130 | ) | |||||||||||||
CNH | 5,705,178 | USD | 894,579 | 03/17 | SCB | (6,769 | ) | |||||||||||||
CNY | 1,175,507 | USD | 190,860 | 10/14 | BNP | 63 | ||||||||||||||
CNY | 800,150 | USD | 130,000 | 10/14 | JPM | (42 | ) | |||||||||||||
CNY | 1,000,000 | USD | 162,048 | 10/14 | JPM | 369 | ||||||||||||||
CNY | 4,788,488 | USD | 772,730 | 10/14 | MSC | 5,003 | ||||||||||||||
CNY | 20,490,291 | USD | 3,318,266 | 10/14 | UBS | 9,710 | ||||||||||||||
COP | 207,380,250 | USD | 104,500 | 10/14 | BNP | (2,366 | ) | |||||||||||||
COP | 466,302,000 | USD | 230,000 | 10/14 | CSF | (347 | ) | |||||||||||||
COP | 471,649,011 | USD | 252,096 | 10/14 | JPM | (19,810 | ) | |||||||||||||
COP | 2,025,791,781 | USD | 1,073,580 | 10/14 | MER | (75,882 | ) | |||||||||||||
COP | 3,179,809,483 | USD | 1,617,946 | 10/14 | SCB | (50,160 | ) | |||||||||||||
CZK | 7,076,006 | USD | 338,403 | 10/14 | BRC | (13,197 | ) | |||||||||||||
CZK | 16,686,330 | USD | 819,484 | 10/14 | CIT | (52,596 | ) | |||||||||||||
EUR | 53,578 | USD | 69,462 | 10/14 | BNP | (1,784 | ) | |||||||||||||
EUR | 154,458 | USD | 205,141 | 10/14 | BRC | (10,033 | ) | |||||||||||||
EUR | 2,463,491 | USD | 3,195,119 | 10/14 | DUB | (82,938 | ) | |||||||||||||
EUR | 57,958 | USD | 77,625 | 10/14 | GSC | (4,414 | ) | |||||||||||||
EUR | 730,135 | USD | 974,454 | 10/14 | MER | (52,166 | ) | |||||||||||||
EUR | 1,006,977 | USD | 1,306,743 | 10/14 | UBS | (34,608 | ) | |||||||||||||
GBP | 53,213 | USD | 86,845 | 10/14 | GSC | (590 | ) | |||||||||||||
HUF | 80,403,063 | USD | 351,397 | 10/14 | BNP | (24,716 | ) | |||||||||||||
HUF | 200,743,733 | USD | 856,262 | 10/14 | BRC | (40,884 | ) | |||||||||||||
HUF | 7,336,974 | USD | 30,000 | 10/14 | MER | (199 | ) | |||||||||||||
IDR | 3,260,452,359 | USD | 271,070 | 10/14 | BNP | (4,967 | ) | |||||||||||||
IDR | 5,289,110,755 | USD | 447,736 | 10/14 | HSB | (16,063 | ) | |||||||||||||
ILS | 173,845 | USD | 49,388 | 10/14 | BRC | (2,178 | ) | |||||||||||||
ILS | 2,168,175 | USD | 632,640 | 10/14 | MER | (43,838 | ) | |||||||||||||
INR | 8,481,488 | USD | 138,090 | 10/14 | DUB | (1,729 | ) | |||||||||||||
INR | 120,507,915 | USD | 1,962,386 | 10/14 | HSB | (24,923 | ) | |||||||||||||
INR | 112,746,000 | USD | 1,849,205 | 10/14 | SCB | (36,534 | ) | |||||||||||||
INR | 31,870,640 | USD | 513,711 | 11/14 | ANZ | (4,483 | ) | |||||||||||||
INR | 9,304,500 | USD | 150,000 | 11/14 | CIT | (1,333 | ) | |||||||||||||
INR | 16,570,452 | USD | 268,870 | 11/14 | DUB | (4,108 | ) | |||||||||||||
INR | 24,660,000 | USD | 398,513 | 12/14 | BNP | (7,300 | ) | |||||||||||||
INR | 16,516,259 | USD | 266,800 | 12/14 | CIT | (4,782 | ) | |||||||||||||
KRW | 104,440,000 | USD | 100,000 | 10/14 | JPM | (1,177 | ) | |||||||||||||
KRW | 994,700,000 | USD | 964,717 | 10/14 | UBS | (23,516 | ) | |||||||||||||
KRW | 3,623,866,350 | USD | 3,494,567 | 11/14 | BRC | (69,390 | ) | |||||||||||||
KRW | 209,526,912 | USD | 202,090 | 11/14 | CIT | (4,051 | ) | |||||||||||||
MXN | 3,407,626 | USD | 258,310 | 10/14 | BNP | (5,169 | ) | |||||||||||||
MXN | 12,592,956 | USD | 963,734 | 10/14 | BRC | (28,247 | ) | |||||||||||||
MXN | 28,723,383 | USD | 2,204,996 | 10/14 | CIT | (71,235 | ) | |||||||||||||
MXN | 3,372,600 | USD | 256,423 | 10/14 | DUB | (5,884 | ) | |||||||||||||
MXN | 24,215,040 | USD | 1,827,560 | 10/14 | GSC | (28,708 | ) | |||||||||||||
MXN | 3,486,757 | USD | 260,000 | 10/14 | JPM | (981 | ) | |||||||||||||
MXN | 12,794,321 | USD | 972,673 | 10/14 | MER | (22,227 | ) | |||||||||||||
MXN | 27,895,368 | USD | 2,135,449 | 10/14 | UBS | (63,198 | ) | |||||||||||||
MYR | 4,010,772 | USD | 1,252,621 | 10/14 | JPM | (32,742 | ) | |||||||||||||
MYR | 2,926,241 | USD | 913,879 | 11/14 | DUB | (25,337 | ) | |||||||||||||
MYR | 2,700,000 | USD | 827,967 | 12/14 | UBS | (10,077 | ) | |||||||||||||
PEN | 490,268 | USD | 173,700 | 10/14 | CIT | (5,080 | ) | |||||||||||||
PEN | 292,766 | USD | 103,781 | 10/14 | MSC | (3,089 | ) | |||||||||||||
PEN | 142,023 | USD | 48,497 | 11/14 | DUB | 278 | ||||||||||||||
PEN | 523,801 | USD | 179,138 | 11/14 | MER | 749 | ||||||||||||||
PEN | 123,981 | USD | 42,271 | 11/14 | MSC | 307 | ||||||||||||||
PHP | 23,733,880 | USD | 548,000 | 10/14 | ANZ | (19,550 | ) | |||||||||||||
PHP | 747,212 | USD | 16,631 | 10/14 | BNP | 7 | ||||||||||||||
PHP | 23,010,833 | USD | 527,945 | 10/14 | BRC | (15,594 | ) | |||||||||||||
PHP | 10,596,000 | USD | 241,945 | 10/14 | DUB | (6,019 | ) | |||||||||||||
PHP | 25,907,000 | USD | 582,088 | 11/14 | ANZ | (5,689 | ) | |||||||||||||
PHP | 4,040,100 | USD | 90,000 | 11/14 | JPM | (113 | ) | |||||||||||||
PLN | 1,965,605 | USD | 598,631 | 10/14 | BNP | (5,966 | ) | |||||||||||||
PLN | 2,481,895 | USD | 783,773 | 10/14 | BRC | (35,437 | ) | |||||||||||||
PLN | 1,000,000 | USD | 322,622 | 10/14 | CIT | (21,105 | ) |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-43
PACIFIC LIFE FUNDS
PL EMERGING MARKETS DEBT FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Currency Purchased | Currency Sold | Expiration | Counterparty | Unrealized Appreciation (Depreciation) | ||||||||||||||||
PLN | 1,060,166 | USD | 325,633 | 10/14 | DUB | ($5,888 | ) | |||||||||||||
PLN | 1,640,000 | USD | 530,170 | 10/14 | GSC | (35,680 | ) | |||||||||||||
PLN | 690,386 | USD | 210,000 | 10/14 | MER | (1,836 | ) | |||||||||||||
PLN | 3,345,093 | USD | 1,068,800 | 10/14 | MSC | (60,195 | ) | |||||||||||||
PLN | 2,268,010 | USD | 712,315 | 11/14 | ING | (29,333 | ) | |||||||||||||
RON | 2,933,236 | USD | 883,748 | 10/14 | BRC | (45,832 | ) | |||||||||||||
RON | 585,231 | USD | 171,620 | 10/14 | CIT | (4,441 | ) | |||||||||||||
RON | 1,075,998 | USD | 322,160 | 10/14 | MER | (14,788 | ) | |||||||||||||
RUB | 64,759,934 | USD | 1,773,890 | 10/14 | BRC | (149,225 | ) | |||||||||||||
RUB | 37,767,407 | USD | 1,008,073 | 10/14 | CSF | (60,582 | ) | |||||||||||||
RUB | 9,871,400 | USD | 250,000 | 10/14 | MSC | (2,351 | ) | |||||||||||||
RUB | 17,173,538 | USD | 465,105 | 11/14 | MSC | (36,739 | ) | |||||||||||||
RUB | 47,866,644 | USD | 1,222,491 | 12/14 | MSC | (35,770 | ) | |||||||||||||
SGD | 4,650,906 | USD | 3,680,825 | 11/14 | DUB | (35,158 | ) | |||||||||||||
SGD | 152,448 | USD | 120,000 | 11/14 | GSC | (502 | ) | |||||||||||||
SGD | 156,578 | USD | 124,160 | 11/14 | JPM | (1,424 | ) | |||||||||||||
THB | 24,474,380 | USD | 762,000 | 10/14 | BRC | (8,372 | ) | |||||||||||||
THB | 4,045,124 | USD | 125,479 | 10/14 | DUB | (919 | ) | |||||||||||||
THB | 3,753,180 | USD | 116,000 | 10/14 | JPM | (430 | ) | |||||||||||||
THB | 4,500,864 | USD | 139,518 | 10/14 | MER | (925 | ) | |||||||||||||
THB | 24,191,025 | USD | 750,000 | 10/14 | MSC | (5,097 | ) | |||||||||||||
THB | 15,839,000 | USD | 489,311 | 11/14 | ANZ | (2,183 | ) | |||||||||||||
THB | 15,547,412 | USD | 485,857 | 11/14 | BRC | (7,697 | ) | |||||||||||||
THB | 12,947,100 | USD | 404,344 | 11/14 | GSC | (6,157 | ) | |||||||||||||
THB | 4,705,717 | USD | 145,180 | 12/14 | BRC | (668 | ) | |||||||||||||
THB | 17,900,500 | USD | 552,093 | 12/14 | GSC | (2,371 | ) | |||||||||||||
TRY | 413,550 | USD | 180,000 | 10/14 | DUB | 94 | ||||||||||||||
TRY | 1,569,643 | USD | 718,753 | 10/14 | HSB | (35,201 | ) | |||||||||||||
TRY | 2,743,393 | USD | 1,257,640 | 10/14 | MER | (62,941 | ) | |||||||||||||
TRY | 518,489 | USD | 233,008 | 11/14 | HSB | (8,675 | ) | |||||||||||||
TWD | 5,486,537 | USD | 181,700 | 10/14 | JPM | (1,303 | ) | |||||||||||||
TWD | 50,598,200 | USD | 1,675,160 | 10/14 | UBS | (11,492 | ) | |||||||||||||
TWD | 33,723,929 | USD | 1,116,502 | 11/14 | HSB | (7,302 | ) | |||||||||||||
USD | 2,075,000 | BRL | 4,937,354 | 10/14 | HSB | 59,062 | ||||||||||||||
USD | 1,723,080 | BRL | 3,937,593 | 10/14 | MSC | 115,347 | ||||||||||||||
USD | 2,116,546 | BRL | 5,156,754 | 11/14 | BRC | 30,706 | ||||||||||||||
USD | 1,427,260 | BRL | 3,529,613 | 11/14 | CSF | (423 | ) | |||||||||||||
USD | 1,820,000 | BRL | 4,401,761 | 11/14 | CSF | 39,544 | ||||||||||||||
USD | 418,828 | BRL | 1,023,281 | 11/14 | MSC | 4,924 | ||||||||||||||
USD | 1,817,115 | CLP | 1,088,088,750 | 10/14 | UBS | (926 | ) | |||||||||||||
USD | 1,977,351 | CNH | 12,296,691 | 03/15 | HSB | 10,215 | ||||||||||||||
USD | 905,178 | CNH | 5,632,467 | 03/15 | SCB | 5,020 | ||||||||||||||
USD | 598,192 | CNH | 3,847,871 | 03/17 | HSB | (787 | ) | |||||||||||||
USD | 1,365,000 | CNH | 8,579,360 | 03/17 | HSB | 29,492 | ||||||||||||||
USD | 903,413 | CNH | 5,705,178 | 03/17 | SCB | 15,603 | ||||||||||||||
USD | 1,127,401 | COP | 2,183,217,269 | 10/14 | CSF | 52,171 | ||||||||||||||
USD | 509,968 | COP | 971,029,233 | 10/14 | DUB | 31,738 | ||||||||||||||
USD | 237,659 | COP | 482,804,419 | 10/14 | GSC | (121 | ) | |||||||||||||
USD | 1,215,032 | COP | 2,364,994,417 | 10/14 | GSC | 48,541 | ||||||||||||||
USD | 236,853 | COP | 458,488,766 | 10/14 | HSB | 11,049 | ||||||||||||||
USD | 716,200 | COP | 1,444,252,500 | 10/14 | SCB | 4,908 | ||||||||||||||
USD | 1,160,000 | CZK | 23,863,143 | 10/14 | BRC | 63,273 | ||||||||||||||
USD | 435,148 | EUR | 338,304 | 10/14 | BNP | 7,775 | ||||||||||||||
USD | 3,627,277 | EUR | 2,737,224 | 10/14 | BRC | 169,365 | ||||||||||||||
USD | 762,905 | EUR | 560,118 | 10/14 | DUB | 55,377 | ||||||||||||||
USD | 101,958 | EUR | 80,000 | 10/14 | GSC | 893 | ||||||||||||||
USD | 751,285 | EUR | 551,758 | 10/14 | HSB | 54,318 | ||||||||||||||
USD | 9,133,407 | EUR | 6,945,762 | 10/14 | MER | 358,735 | ||||||||||||||
USD | 2,978,870 | EUR | 2,270,035 | 11/14 | CIT | 110,509 | ||||||||||||||
USD | 2,035,274 | EUR | 1,545,103 | 11/14 | MER | 82,918 | ||||||||||||||
USD | 3,058,781 | EUR | 2,330,539 | 11/14 | UBS | 113,968 | ||||||||||||||
USD | 780,042 | GBP | 455,874 | 10/14 | DUB | 41,096 | ||||||||||||||
USD | 19,650 | HUF | 4,834,056 | 10/14 | BNP | 15 | ||||||||||||||
USD | 40,329 | HUF | 9,779,828 | 10/14 | CIT | 605 | ||||||||||||||
USD | 510,000 | HUF | 118,059,900 | 10/14 | DUB | 30,318 | ||||||||||||||
USD | 216,344 | HUF | 50,630,967 | 10/14 | HSB | 10,692 | ||||||||||||||
USD | 360,000 | HUF | 86,583,600 | 10/14 | JPM | 8,316 | ||||||||||||||
USD | 296,328 | HUF | 71,854,828 | 10/14 | MER | 4,379 | ||||||||||||||
USD | 300,000 | HUF | 71,914,800 | 10/14 | MSC | 7,897 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-44
PACIFIC LIFE FUNDS
PL EMERGING MARKETS DEBT FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Currency Purchased | Currency Sold | Expiration | Counterparty | Unrealized Appreciation (Depreciation) | ||||||||||||||||
USD | 162,115 | HUF | 39,079,332 | 11/14 | CIT | $3,464 | ||||||||||||||
USD | 47,589 | HUF | 11,459,395 | 11/14 | JPM | 1,067 | ||||||||||||||
USD | 70,000 | IDR | 828,100,000 | 10/14 | BNP | 2,414 | ||||||||||||||
USD | 437,699 | IDR | 5,199,049,192 | 10/14 | HSB | 13,376 | ||||||||||||||
USD | 911,899 | IDR | 10,964,400,000 | 10/14 | JPM | 17,033 | ||||||||||||||
USD | 740,000 | MXN | 9,772,279 | 10/14 | CIT | 14,051 | ||||||||||||||
USD | 189,678 | MXN | 2,546,242 | 10/14 | CSF | 526 | ||||||||||||||
USD | 857,770 | MXN | 11,282,443 | 10/14 | DUB | 19,636 | ||||||||||||||
USD | 743,945 | MXN | 9,881,040 | 10/14 | GSC | 9,916 | ||||||||||||||
USD | 1,195,000 | MXN | 15,924,092 | 10/14 | JPM | 12,054 | ||||||||||||||
USD | 2,300,000 | MXN | 30,849,210 | 10/14 | MSC | 8,319 | ||||||||||||||
USD | 256,704 | MYR | 817,419 | 10/14 | BRC | 8,085 | ||||||||||||||
USD | 31,876 | MYR | 101,747 | 10/14 | CIT | 929 | ||||||||||||||
USD | 279,462 | MYR | 893,299 | 10/14 | DUB | 7,764 | ||||||||||||||
USD | 54,728 | MYR | 174,675 | 10/14 | JPM | 1,600 | ||||||||||||||
USD | 33,014 | PEN | 95,541 | 10/14 | BNP | 154 | ||||||||||||||
USD | 369,632 | PEN | 1,052,997 | 10/14 | DUB | 7,470 | ||||||||||||||
USD | 122,155 | PLN | 398,015 | 10/14 | BNP | 2,147 | ||||||||||||||
USD | 557,895 | PLN | 1,743,608 | 10/14 | CIT | 32,166 | ||||||||||||||
USD | 44,602 | PLN | 147,876 | 10/14 | DUB | 15 | ||||||||||||||
USD | 72,924 | PLN | 240,776 | 10/14 | MER | 326 | ||||||||||||||
USD | 448,454 | PLN | 1,452,033 | 11/14 | UBS | 11,193 | ||||||||||||||
USD | 73,621 | RON | 250,039 | 11/14 | JPM | 2,329 | ||||||||||||||
USD | 29,952 | RON | 101,723 | 11/14 | MER | 949 | ||||||||||||||
USD | 407,648 | RUB | 15,420,729 | 10/14 | CSF | 20,780 | ||||||||||||||
USD | 891,087 | RUB | 34,278,030 | 10/14 | MSC | 31,137 | ||||||||||||||
USD | 253,301 | TRY | 581,486 | 10/14 | BNP | 74 | ||||||||||||||
USD | 500,000 | TRY | 1,139,355 | 10/14 | CIT | 3,831 | ||||||||||||||
USD | 298,796 | TRY | 680,208 | 10/14 | CSF | 2,577 | ||||||||||||||
USD | 797,262 | TRY | 1,731,940 | 10/14 | HSB | 43,032 | ||||||||||||||
USD | 462,727 | TRY | 1,042,070 | 10/14 | MER | 8,924 | ||||||||||||||
USD | 594,203 | TRY | 1,303,096 | 11/14 | BNP | 30,397 | ||||||||||||||
USD | 490,000 | TRY | 1,123,722 | 11/14 | CIT | 3,803 | ||||||||||||||
USD | 1,112,924 | ZAR | 11,956,330 | 10/14 | BRC | 58,925 | ||||||||||||||
USD | 318,974 | ZAR | 3,583,546 | 10/14 | DUB | 3,070 | ||||||||||||||
USD | 908,703 | ZAR | 9,829,209 | 10/14 | GSC | 42,218 | ||||||||||||||
USD | 359,534 | ZAR | 3,864,342 | 10/14 | HSB | 18,876 | ||||||||||||||
USD | 154,307 | ZAR | 1,756,911 | 10/14 | MER | (571 | ) | |||||||||||||
USD | 230,000 | ZAR | 2,464,910 | 10/14 | MER | 12,708 | ||||||||||||||
USD | 800,708 | ZAR | 8,646,971 | 10/14 | MSC | 38,443 | ||||||||||||||
USD | 447,166 | ZAR | 4,953,774 | 10/14 | UBS | 10,470 | ||||||||||||||
USD | 251,452 | ZAR | 2,730,622 | 11/14 | UBS | 11,815 | ||||||||||||||
ZAR | 10,203,949 | USD | 944,370 | 10/14 | CIT | (44,850 | ) | |||||||||||||
ZAR | 2,700,573 | USD | 245,490 | 10/14 | HSB | (7,423 | ) | |||||||||||||
ZAR | 5,364,268 | USD | 480,000 | 10/14 | MER | (7,118 | ) | |||||||||||||
|
| |||||||||||||||||||
Total Forward Foreign Currency Contracts |
| $21,643 | ||||||||||||||||||
|
|
(e) | Swap agreements outstanding as of September 30, 2014 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 (Depreciation) | ||||||||||||||||||||||||
3-Month ZAR JIBAR | BRC | Pay | 6.580% | 11/07/16 | ZAR 6,800,000 | ($4,365 | ) | $— | ($4,365 | ) | ||||||||||||||||||||||
Brazil CETIP Interbank | HSB | Pay | 11.525% | 01/02/17 | BRL 3,169,137 | (4,918 | ) | — | (4,918 | ) | ||||||||||||||||||||||
Brazil CETIP Interbank | HSB | Pay | 12.285% | 01/02/17 | 731,495 | (7,248 | ) | — | (7,248 | ) | ||||||||||||||||||||||
Brazil CETIP Interbank | HSB | Pay | 12.303% | 01/02/17 | 3,251,816 | (32,311 | ) | — | (32,311 | ) | ||||||||||||||||||||||
Brazil CETIP Interbank | HSB | Pay | 12.490% | 01/02/17 | 1,587,981 | (12,788 | ) | — | (12,788 | ) | ||||||||||||||||||||||
3-Month ZAR JIBAR | HSB | Pay | 6.695% | 01/14/17 | ZAR 3,762,000 | (112 | ) | — | (112 | ) | ||||||||||||||||||||||
3-Month ZAR JIBAR | MSC | Pay | 6.760% | 01/17/17 | 3,800,000 | (1,491 | ) | — | (1,491 | ) | ||||||||||||||||||||||
3-Month ZAR JIBAR | BRC | Pay | 7.115% | 04/10/17 | 2,300,000 | 523 | — | 523 | ||||||||||||||||||||||||
3-Month ZAR JIBAR | HSB | Pay | 6.975% | 08/14/17 | 6,800,000 | (3,009 | ) | — | (3,009 | ) | ||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||
($65,719 | ) | $— | ($65,719 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-45
PACIFIC LIFE FUNDS
PL EMERGING MARKETS DEBT FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Total Return Swaps
Receive Total Return | Counter- party | Expiration Date | Notional Amount | Value | Upfront Premiums Paid (Received) | Unrealized Depreciation | ||||||||||||||||||
Indonesia Treasury 7.875% due 04/15/19 | ANZ | 04/15/19 | IDR 7,900,000,000 | $663,040 | $674,976 | ($11,936 | ) | |||||||||||||||||
Indonesia Treasury 12.800% due 06/15/21 | SCB | 06/15/21 | 3,600,000,000 | 372,523 | 427,604 | (55,081 | ) | |||||||||||||||||
Indonesia Treasury 8.375% due 03/15/24 | ANZ | 03/15/24 | 1,200,000,000 | 98,473 | 104,612 | (6,139 | ) | |||||||||||||||||
Indonesia Treasury 8.375% due 03/15/24 | SCB | 03/15/24 | 7,841,000,000 | 643,428 | 681,711 | (38,283 | ) | |||||||||||||||||
Indonesia Treasury 11.000% due 09/15/25 | SCB | 09/15/25 | 800,000,000 | 78,331 | 95,655 | (17,324 | ) | |||||||||||||||||
Indonesia Treasury 8.375% due 09/15/26 | SCB | 09/15/26 | 2,200,000,000 | 179,276 | 198,527 | (19,251 | ) | |||||||||||||||||
Indonesia Treasury 7.000% due 05/15/27 | SCB | 05/15/27 | 1,800,000,000 | 132,283 | 162,394 | (30,111 | ) | |||||||||||||||||
Indonesia Treasury 9.000% due 03/15/29 | ANZ | 03/15/29 | 2,800,000,000 | 235,294 | 248,989 | (13,695 | ) | |||||||||||||||||
Indonesia Treasury 10.500% due 08/15/30 | SCB | 08/15/30 | 1,500,000,000 | 142,976 | 178,032 | (35,056 | ) | |||||||||||||||||
Indonesia Treasury 6.625% due 05/15/33 | SCB | 05/15/33 | 270,000,000 | 18,072 | 22,858 | (4,786 | ) | |||||||||||||||||
Indonesia Treasury 8.375% due 03/15/34 | ANZ | 03/15/34 | 2,600,000,000 | 202,925 | 215,224 | (12,299 | ) | |||||||||||||||||
Indonesia Treasury 8.375% due 03/15/34 | HSB | 03/15/34 | 584,000,000 | 45,580 | 49,765 | (4,185 | ) | |||||||||||||||||
Indonesia Treasury 8.375% due 03/15/34 | SCB | 03/15/34 | 5,279,000,000 | 412,015 | 430,410 | (18,395 | ) | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
$3,224,216 | $3,490,757 | ($266,541 | ) | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total Swap Agreements | $3,158,497 | $3,490,757 | ($332,260 | ) | ||||||||||||||||||||
|
|
|
|
|
|
(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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Corporate Bonds & Notes | $41,193,956 | $— | $41,193,956 | $— | |||||||||||||
Senior Loan Notes | 1,786,359 | — | 1,786,359 | — | ||||||||||||||
Foreign Government Bonds & Notes | 93,667,602 | — | 93,667,602 | — | ||||||||||||||
Short-Term Investments | 25,222,111 | 24,324,620 | 897,491 | — | ||||||||||||||
Derivatives: | ||||||||||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Forward Foreign Currency Contracts | 2,123,244 | — | 2,123,244 | — | ||||||||||||||
Interest Rate Contracts | ||||||||||||||||||
Swaps | 3,224,739 | — | 3,224,739 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Assets - Derivatives | 5,347,983 | — | 5,347,983 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Assets | 167,218,011 | 24,324,620 | 142,893,391 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Liabilities | Derivatives: | |||||||||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Forward Foreign Currency Contracts | (2,101,601 | ) | — | (2,101,601 | ) | — | ||||||||||||
Interest Rate Contracts | ||||||||||||||||||
Swaps | (66,242 | ) | — | (66,242 | ) | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities - Derivatives | (2,167,843 | ) | — | (2,167,843 | ) | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities | (2,167,843 | ) | — | (2,167,843 | ) | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $165,050,168 | $24,324,620 | $140,725,548 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-46
PACIFIC LIFE FUNDS
PL COMSTOCK FUND
Schedule of Investments
September 30, 2014 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS - 97.2% | ||||||||
Consumer Discretionary - 14.3% | ||||||||
Carnival Corp (Panama) | 124,522 | $5,002,049 | ||||||
Comcast Corp ‘A’ | 68,331 | 3,674,841 | ||||||
Fossil Group Inc * | 11,105 | 1,042,760 | ||||||
General Motors Co | 138,229 | 4,415,034 | ||||||
Johnson Controls Inc | 77,536 | 3,411,584 | ||||||
Kohl’s Corp | 51,216 | 3,125,712 | ||||||
Newell Rubbermaid Inc | 51,821 | 1,783,161 | ||||||
Target Corp | 37,761 | 2,366,859 | ||||||
Time Warner Cable Inc | 23,253 | 3,336,573 | ||||||
Time Warner Inc | 21,582 | 1,623,182 | ||||||
Twenty-First Century Fox Inc ‘B’ | 98,843 | 3,292,460 | ||||||
Viacom Inc ‘B’ | 65,912 | 5,071,269 | ||||||
|
| |||||||
38,145,484 | ||||||||
|
| |||||||
Consumer Staples - 4.4% | ||||||||
ConAgra Foods Inc | 122,272 | 4,039,867 | ||||||
CVS Health Corp | 51,897 | 4,130,482 | ||||||
Mondelez International Inc ‘A’ | 52,240 | 1,790,004 | ||||||
Unilever NV ‘NY’ (Netherlands) | 48,397 | 1,920,393 | ||||||
|
| |||||||
11,880,746 | ||||||||
|
| |||||||
Energy - 15.8% | ||||||||
BP PLC ADR (United Kingdom) | 115,710 | 5,085,455 | ||||||
Chevron Corp | 27,867 | 3,325,090 | ||||||
Halliburton Co | 59,898 | 3,864,020 | ||||||
Murphy Oil Corp | 59,731 | 3,399,291 | ||||||
Noble Corp PLC (United Kingdom) | 78,336 | 1,740,626 | ||||||
Occidental Petroleum Corp | 32,531 | 3,127,856 | ||||||
Paragon Offshore PLC * | 9,849 | 60,569 | ||||||
QEP Resources Inc | 92,683 | 2,852,783 | ||||||
Royal Dutch Shell PLC ‘A’ ADR (United Kingdom) | 71,380 | 5,434,159 | ||||||
Suncor Energy Inc (Canada) | 145,533 | 5,261,018 | ||||||
Weatherford International PLC (Ireland) * | 386,337 | 8,035,810 | ||||||
|
| |||||||
42,186,677 | ||||||||
|
| |||||||
Financials - 24.1% | ||||||||
Aflac Inc | 26,406 | 1,538,150 | ||||||
Bank of America Corp | 297,560 | 5,073,398 | ||||||
Citigroup Inc | 221,981 | 11,503,055 | ||||||
Fifth Third Bancorp | 135,327 | 2,709,247 | ||||||
JPMorgan Chase & Co | 134,820 | 8,121,557 | ||||||
MetLife Inc | 69,376 | 3,726,879 | ||||||
Morgan Stanley | 122,751 | 4,243,502 | ||||||
State Street Corp | 59,626 | 4,389,070 | ||||||
The Allstate Corp | 82,736 | 5,077,508 | ||||||
The Bank of New York Mellon Corp | 120,836 | 4,679,978 | ||||||
The Goldman Sachs Group Inc | 13,978 | 2,565,941 | ||||||
The PNC Financial Services Group Inc | 46,544 | 3,983,236 | ||||||
The Travelers Cos Inc | 9,492 | 891,678 | ||||||
US Bancorp | 24,133 | 1,009,483 | ||||||
Wells Fargo & Co | 94,347 | 4,893,779 | ||||||
|
| |||||||
64,406,461 | ||||||||
|
| |||||||
Health Care - 14.2% | ||||||||
AbbVie Inc | 31,901 | 1,842,602 | ||||||
Bristol-Myers Squibb Co | 58,930 | 3,016,037 | ||||||
Cardinal Health Inc | 10,894 | 816,178 | ||||||
Express Scripts Holding Co * | 25,702 | 1,815,332 | ||||||
GlaxoSmithKline PLC ADR (United Kingdom) | 23,417 | 1,076,479 | ||||||
Medtronic Inc | 24,827 | 1,538,033 | ||||||
Merck & Co Inc | 92,097 | 5,459,510 | ||||||
Novartis AG (Switzerland) | 47,361 | 4,460,369 | ||||||
Pfizer Inc | 132,970 | 3,931,923 | ||||||
Roche Holding AG ADR (Switzerland) | 65,043 | 2,405,941 | ||||||
Sanofi ADR (France) | 73,540 | 4,149,862 |
Shares | Value | |||||||
UnitedHealth Group Inc | 50,067 | $4,318,279 | ||||||
WellPoint Inc | 27,013 | 3,231,295 | ||||||
|
| |||||||
38,061,840 | ||||||||
|
| |||||||
Industrials - 6.0% | ||||||||
Emerson Electric Co | 42,090 | 2,633,992 | ||||||
General Electric Co | 219,321 | 5,619,004 | ||||||
Honeywell International Inc | 20,450 | 1,904,304 | ||||||
Ingersoll-Rand PLC (Ireland) | 55,620 | 3,134,743 | ||||||
Textron Inc | 77,270 | 2,780,947 | ||||||
Veritiv Corp * l | — | 22 | ||||||
|
| |||||||
16,073,012 | ||||||||
|
| |||||||
Information Technology - 12.5% | ||||||||
Autodesk Inc * | 27,732 | 1,528,033 | ||||||
Cisco Systems Inc | 185,969 | 4,680,840 | ||||||
Citrix Systems Inc * | 40,200 | 2,867,868 | ||||||
Corning Inc | 115,827 | 2,240,094 | ||||||
eBay Inc * | 79,355 | 4,493,874 | ||||||
Hewlett-Packard Co | 129,948 | 4,609,256 | ||||||
Intel Corp | 88,316 | 3,075,163 | ||||||
Microsoft Corp | 107,261 | 4,972,620 | ||||||
Symantec Corp | 133,971 | 3,149,658 | ||||||
Yahoo! Inc * | 41,340 | 1,684,605 | ||||||
|
| |||||||
33,302,011 | ||||||||
|
| |||||||
Materials - 2.0% | ||||||||
Alcoa Inc | 177,400 | 2,854,366 | ||||||
International Paper Co | 51,766 | 2,471,309 | ||||||
|
| |||||||
5,325,675 | ||||||||
|
| |||||||
Telecommunication Services - 1.8% | ||||||||
AT&T Inc | 26,391 | 930,019 | ||||||
Verizon Communications Inc | 53,330 | 2,665,967 | ||||||
Vivendi SA (France) * | 50,242 | 1,210,822 | ||||||
|
| |||||||
4,806,808 | ||||||||
|
| |||||||
Utilities - 2.1% | ||||||||
FirstEnergy Corp | 34,662 | 1,163,603 | ||||||
PG&E Corp | 39,926 | 1,798,267 | ||||||
PPL Corp | 78,627 | 2,582,111 | ||||||
|
| |||||||
5,543,981 | ||||||||
|
| |||||||
Total Common Stocks | 259,732,695 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT - 2.7% | ||||||||
Money Market Fund - 2.7% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 7,201,697 | 7,201,697 | ||||||
|
| |||||||
Total Short-Term Investment | 7,201,697 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 99.9% | 266,934,392 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.1% | 195,762 | |||||||
|
| |||||||
NET ASSETS - 100.0% | $267,130,154 | |||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-47
PACIFIC LIFE FUNDS
PL COMSTOCK FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Financials | 24.1% | |||
Energy | 15.8% | |||
Consumer Discretionary | 14.3% | |||
Health Care | 14.2% | |||
Information Technology | 12.5% | |||
Industrials | 6.0% | |||
Consumer Staples | 4.4% | |||
Short-Term Investment | 2.7% | |||
Others (each less than 3.0%) | 5.9% | |||
|
| |||
99.9% | ||||
Other Assets & Liabilities, Net | 0.1% | |||
|
| |||
100.0% | ||||
|
|
(b) | Forward foreign currency contracts outstanding as of September 30, 2014 were as follows: |
Currency Purchased | Currency Sold | Expiration | Counterparty | Unrealized Appreciation | ||||||||||||||||
USD | 1,192,647 | CAD | 1,319,755 | 10/14 | BRC | $14,763 | ||||||||||||||
USD | 1,221,602 | CAD | 1,351,947 | 10/14 | CIB | 14,987 | ||||||||||||||
USD | 1,192,596 | CAD | 1,319,756 | 10/14 | DUB | 14,711 | ||||||||||||||
USD | 1,192,132 | CAD | 1,319,756 | 10/14 | GSC | 14,247 | ||||||||||||||
USD | 1,316,164 | CHF | 1,230,182 | 10/14 | BRC | 27,432 | ||||||||||||||
USD | 1,315,970 | CHF | 1,230,182 | 10/14 | CIB | 27,238 | ||||||||||||||
USD | 1,316,266 | CHF | 1,230,182 | 10/14 | DUB | 27,533 | ||||||||||||||
USD | 1,851,782 | CHF | 1,730,953 | 10/14 | GSC | 38,444 | ||||||||||||||
USD | 2,109,269 | EUR | 1,629,305 | 10/14 | BRC | 51,130 | ||||||||||||||
USD | 2,107,949 | EUR | 1,629,305 | 10/14 | CIB | 49,810 | ||||||||||||||
USD | 2,109,266 | EUR | 1,629,305 | 10/14 | DUB | 51,127 | ||||||||||||||
USD | 2,550,098 | EUR | 1,970,892 | 10/14 | GSC | 60,466 | ||||||||||||||
USD | 2,108,212 | EUR | 1,629,305 | 10/14 | RBC | 50,073 | ||||||||||||||
USD | 1,254,985 | GBP | 772,878 | 10/14 | BRC | 2,225 | ||||||||||||||
USD | 1,254,458 | GBP | 772,878 | 10/14 | CIB | 1,699 | ||||||||||||||
USD | 1,599,024 | GBP | 984,754 | 10/14 | DUB | 2,835 | ||||||||||||||
USD | 1,254,597 | GBP | 772,878 | 10/14 | GSC | 1,838 | ||||||||||||||
|
| |||||||||||||||||||
Total Forward Foreign Currency Contracts | $450,558 | |||||||||||||||||||
|
|
(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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Common Stocks | |||||||||||||||||
Consumer Discretionary | $38,145,484 | $38,145,484 | $— | $— | ||||||||||||||
Consumer Staples | 11,880,746 | 11,880,746 | — | — | ||||||||||||||
Energy | 42,186,677 | 42,186,677 | — | — | ||||||||||||||
Financials | 64,406,461 | 64,406,461 | — | — | ||||||||||||||
Health Care | 38,061,840 | 33,601,471 | 4,460,369 | — | ||||||||||||||
Industrials | 16,073,012 | 16,073,012 | — | — | ||||||||||||||
Information Technology | 33,302,011 | 33,302,011 | — | — | ||||||||||||||
Materials | 5,325,675 | 5,325,675 | — | — | ||||||||||||||
Telecommunication Services | 4,806,808 | 3,595,986 | 1,210,822 | — | ||||||||||||||
Utilities | 5,543,981 | 5,543,981 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
259,732,695 | 254,061,504 | 5,671,191 | — | |||||||||||||||
Short-Term Investment | 7,201,697 | 7,201,697 | — | — | ||||||||||||||
Derivatives: | ||||||||||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Forward Foreign Currency Contracts | 450,558 | — | 450,558 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $267,384,950 | $261,263,201 | $6,121,749 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-48
PACIFIC LIFE FUNDS
PL GROWTH FUND
Schedule of Investments
September 30, 2014 (Unaudited)
| Value | |||||||
COMMON STOCKS - 98.3% |
| |||||||
Consumer Discretionary - 22.2% |
| |||||||
Amazon.com Inc * | 3,617 | $1,166,265 | ||||||
AutoZone Inc * | 1,173 | 597,831 | ||||||
BorgWarner Inc | 7,383 | 388,420 | ||||||
Comcast Corp ‘Special A’ | 40,197 | 2,150,540 | ||||||
Discovery Communications Inc ‘A’ * | 8,621 | 325,874 | ||||||
Discovery Communications Inc ‘C’ * | 8,621 | 321,391 | ||||||
Hilton Worldwide Holdings Inc * | 19,749 | 486,418 | ||||||
L Brands Inc | 11,758 | 787,551 | ||||||
Las Vegas Sands Corp | 21,298 | 1,324,949 | ||||||
LVMH Moet Hennessy Louis Vuitton SA (France) | 4,440 | 719,732 | ||||||
Marriott International Inc ‘A’ | 19,797 | 1,383,810 | ||||||
NIKE Inc ‘B’ | 10,077 | 898,868 | ||||||
PVH Corp | 5,668 | 686,678 | ||||||
Ross Stores Inc | 27,522 | 2,080,113 | ||||||
Starbucks Corp | 15,238 | 1,149,859 | ||||||
The Priceline Group Inc * | 2,210 | 2,560,462 | ||||||
The TJX Cos Inc | 21,253 | 1,257,540 | ||||||
The Walt Disney Co | 19,120 | 1,702,254 | ||||||
Tiffany & Co | 6,867 | 661,361 | ||||||
Time Inc * l | — | 6 | ||||||
Time Warner Inc | 20,247 | 1,522,777 | ||||||
Tractor Supply Co | 7,531 | 463,232 | ||||||
TripAdvisor Inc * | 2,601 | 237,783 | ||||||
Twenty-First Century Fox Inc ‘A’ | 65,466 | 2,244,829 | ||||||
Urban Outfitters Inc * | 3,685 | 135,240 | ||||||
VF Corp | 27,339 | 1,805,194 | ||||||
Viacom Inc ‘B’ | 3,348 | 257,595 | ||||||
Wynn Resorts Ltd | 9,856 | 1,843,860 | ||||||
Yum! Brands Inc | 6,596 | 474,780 | ||||||
|
| |||||||
29,635,212 | ||||||||
|
| |||||||
Consumer Staples - 6.6% |
| |||||||
Colgate-Palmolive Co | 18,792 | 1,225,614 | ||||||
Constellation Brands Inc ‘A’ * | 8,506 | 741,383 | ||||||
Costco Wholesale Corp | 8,457 | 1,059,831 | ||||||
CVS Health Corp | 13,923 | 1,108,132 | ||||||
Danone SA (France) | 9,013 | 601,712 | ||||||
Diageo PLC (United Kingdom) | 7,002 | 202,454 | ||||||
Mead Johnson Nutrition Co | 11,366 | 1,093,637 | ||||||
Mondelez International Inc ‘A’ | 27,356 | 937,353 | ||||||
Pernod Ricard SA (France) | 4,489 | 507,377 | ||||||
Philip Morris International Inc | 8,023 | 669,118 | ||||||
The Estee Lauder Cos Inc ‘A’ | 8,301 | 620,251 | ||||||
|
| |||||||
8,766,862 | ||||||||
|
| |||||||
Energy - 4.9% |
| |||||||
Anadarko Petroleum Corp | 11,636 | 1,180,356 | ||||||
Concho Resources Inc * | 2,976 | 373,161 | ||||||
Halliburton Co | 13,283 | 856,886 | ||||||
Noble Energy Inc | 17,963 | 1,227,951 | ||||||
Pioneer Natural Resources Co | 6,773 | 1,334,078 | ||||||
Schlumberger Ltd (Netherlands) | 11,644 | 1,184,078 | ||||||
Whiting Petroleum Corp * | 4,236 | 328,502 | ||||||
|
| |||||||
6,485,012 | ||||||||
|
| |||||||
Financials - 7.8% |
| |||||||
Affiliated Managers Group Inc * | 4,612 | 924,060 | ||||||
American Express Co | 19,201 | 1,680,856 | ||||||
American Tower Corp REIT | 30,035 | 2,812,177 | ||||||
BlackRock Inc | 2,419 | 794,206 | ||||||
Intercontinental Exchange Inc | 11,745 | 2,290,862 | ||||||
MetLife Inc | 7,748 | 416,223 | ||||||
Moody’s Corp | 5,046 | 476,847 | ||||||
Morgan Stanley | 21,482 | 742,633 | ||||||
Realogy Holdings Corp * | 6,036 | 224,539 | ||||||
|
| |||||||
10,362,403 | ||||||||
|
|
| Value | |||||||
Health Care - 19.5% |
| |||||||
Abbott Laboratories | 27,123 | $1,128,046 | ||||||
AbbVie Inc | 6,852 | 395,772 | ||||||
Actavis PLC (Ireland) * | 11,218 | 2,706,777 | ||||||
Alexion Pharmaceuticals Inc * | 11,135 | 1,846,406 | ||||||
Biogen Idec Inc * | 8,099 | 2,679,230 | ||||||
Bristol-Myers Squibb Co | 36,185 | 1,851,948 | ||||||
Celgene Corp * | 18,584 | 1,761,392 | ||||||
Cerner Corp * | 15,674 | 933,700 | ||||||
Covidien PLC (Ireland) | 14,898 | 1,288,826 | ||||||
CR Bard Inc | 2,953 | 421,423 | ||||||
Gilead Sciences Inc * | 18,413 | 1,960,064 | ||||||
Isis Pharmaceuticals Inc * | 3,962 | 153,844 | ||||||
McKesson Corp | 7,225 | 1,406,491 | ||||||
Puma Biotechnology Inc * | 2,016 | 480,957 | ||||||
Regeneron Pharmaceuticals Inc * | 4,115 | 1,483,540 | ||||||
The Cooper Cos Inc | 3,782 | 589,047 | ||||||
Thermo Fisher Scientific Inc | 23,445 | 2,853,257 | ||||||
Valeant Pharmaceuticals International Inc (Canada) * | 6,930 | 909,216 | ||||||
Vertex Pharmaceuticals Inc * | 4,107 | 461,257 | ||||||
Zoetis Inc | 17,742 | 655,567 | ||||||
|
| |||||||
25,966,760 | ||||||||
|
| |||||||
Industrials - 8.3% |
| |||||||
AMETEK Inc | 25,381 | 1,274,380 | ||||||
Colfax Corp * | 10,990 | 626,100 | ||||||
Danaher Corp | 37,816 | 2,873,260 | ||||||
Honeywell International Inc | 13,033 | 1,213,633 | ||||||
Joy Global Inc | 4,787 | 261,083 | ||||||
Kansas City Southern | 4,685 | 567,822 | ||||||
Precision Castparts Corp | 6,401 | 1,516,269 | ||||||
Roper Industries Inc | 7,247 | 1,060,164 | ||||||
Union Pacific Corp | 10,397 | 1,127,243 | ||||||
Verisk Analytics Inc ‘A’ * | 8,796 | 535,588 | ||||||
|
| |||||||
11,055,542 | ||||||||
|
| |||||||
Information Technology - 25.6% |
| |||||||
Adobe Systems Inc * | 7,723 | 534,354 | ||||||
Alibaba Group Holding Ltd ADR (Cayman) * | 460 | 40,871 | ||||||
Altera Corp | 24,959 | 893,033 | ||||||
Apple Inc | 16,746 | 1,687,160 | ||||||
Broadcom Corp ‘A’ | 14,795 | 598,014 | ||||||
Citrix Systems Inc * | 9,411 | 671,381 | ||||||
Cognizant Technology Solutions Corp ‘A’ * | 46,030 | 2,060,763 | ||||||
EMC Corp | 91,615 | 2,680,655 | ||||||
Facebook Inc ‘A’ * | 42,144 | 3,331,062 | ||||||
FleetCor Technologies Inc * | 10,193 | 1,448,629 | ||||||
Google Inc ‘A’ * | 6,476 | 3,810,543 | ||||||
Google Inc ‘C’ * | 5,569 | 3,215,318 | ||||||
LinkedIn Corp ‘A’ * | 5,838 | 1,213,078 | ||||||
MasterCard Inc ‘A’ | 33,049 | 2,442,982 | ||||||
Oracle Corp | 52,501 | 2,009,738 | ||||||
PTC Inc * | 9,509 | 350,882 | ||||||
QUALCOMM Inc | 7,258 | 542,681 | ||||||
salesforce.com Inc * | 30,242 | 1,739,822 | ||||||
Twitter Inc * | 9,041 | 466,335 | ||||||
Visa Inc ‘A’ | 16,670 | 3,556,878 | ||||||
VMware Inc ‘A’ * | 2,112 | 198,190 | ||||||
Yahoo! Inc * | 16,994 | 692,506 | ||||||
|
| |||||||
34,184,875 | ||||||||
|
| |||||||
Materials - 3.4% |
| |||||||
Airgas Inc | 4,482 | 495,933 | ||||||
Ecolab Inc | 5,060 | 581,040 | ||||||
Monsanto Co | 15,859 | 1,784,296 | ||||||
The Sherwin-Williams Co | 7,768 | 1,701,110 | ||||||
|
| |||||||
4,562,379 | ||||||||
|
| |||||||
Total Common Stocks | 131,019,045 | |||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-49
PACIFIC LIFE FUNDS
PL GROWTH FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
| Value | |||||||
SHORT-TERM INVESTMENT - 1.5% |
| |||||||
Money Market Fund - 1.5% |
| |||||||
BlackRock Liquidity Funds Treasury | 2,033,361 | $2,033,361 | ||||||
|
| |||||||
Total Short-Term Investment | 2,033,361 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 99.8% | 133,052,406 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.2% | 211,652 | |||||||
|
| |||||||
NET ASSETS - 100.0% | $133,264,058 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Information Technology | 25.6% | |||
Consumer Discretionary | 22.2% | |||
Health Care | 19.5% | |||
Industrials | 8.3% | |||
Financials | 7.8% | |||
Consumer Staples | 6.6% | |||
Energy | 4.9% | |||
Materials | 3.4% | |||
Others (each less than 3.0%) | 1.5% | |||
|
| |||
99.8% | ||||
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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Common Stocks | |||||||||||||||||
Consumer Discretionary | $29,635,212 | $28,915,480 | $719,732 | $— | ||||||||||||||
Consumer Staples | 8,766,862 | 7,455,319 | 1,311,543 | — | ||||||||||||||
Energy | 6,485,012 | 6,485,012 | — | — | ||||||||||||||
Financials | 10,362,403 | 10,362,403 | — | — | ||||||||||||||
Health Care | 25,966,760 | 25,966,760 | — | — | ||||||||||||||
Industrials | 11,055,542 | 11,055,542 | — | — | ||||||||||||||
Information Technology | 34,184,875 | 34,184,875 | — | — | ||||||||||||||
Materials | 4,562,379 | 4,562,379 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
131,019,045 | 128,987,770 | 2,031,275 | — | |||||||||||||||
Short-Term Investment | 2,033,361 | 2,033,361 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $133,052,406 | $131,021,131 | $2,031,275 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-50
PACIFIC LIFE FUNDS
PL LARGE-CAP GROWTH FUND
Schedule of Investments
September 30, 2014 (Unaudited)
| Value | |||||||
COMMON STOCKS - 99.1% |
| |||||||
Consumer Discretionary - 22.6% |
| |||||||
Comcast Corp ‘A’ | 58,129 | $3,126,178 | ||||||
Delphi Automotive PLC (United Kingdom) | 26,590 | 1,631,031 | ||||||
Liberty Global PLC ‘A’ (United Kingdom) * | 114,546 | 4,872,787 | ||||||
McDonald’s Corp | 22,146 | 2,099,662 | ||||||
Netflix Inc * | 8,490 | 3,830,518 | ||||||
Starbucks Corp | 34,103 | 2,573,412 | ||||||
The Home Depot Inc | 20,798 | 1,908,008 | ||||||
The Priceline Group Inc * | 2,712 | 3,142,069 | ||||||
The Walt Disney Co | 41,509 | 3,695,546 | ||||||
Time Warner Inc | 19,160 | 1,441,024 | ||||||
TripAdvisor Inc * | 38,499 | 3,519,579 | ||||||
Twenty-First Century Fox Inc ‘A’ | 165,343 | 5,669,612 | ||||||
Vipshop Holdings Ltd ADR (Cayman) * | 7,551 | 1,427,214 | ||||||
Wynn Resorts Ltd | 17,012 | 3,182,605 | ||||||
|
| |||||||
42,119,245 | ||||||||
|
| |||||||
Consumer Staples - 2.0% |
| |||||||
CVS Health Corp | 14,189 | 1,129,302 | ||||||
Mondelez International Inc ‘A’ | 72,489 | 2,483,836 | ||||||
|
| |||||||
3,613,138 | ||||||||
|
| |||||||
Energy - 4.4% |
| |||||||
Concho Resources Inc * | 16,849 | 2,112,696 | ||||||
Gulfport Energy Corp * | 28,672 | 1,531,085 | ||||||
Laredo Petroleum Inc * | 42,118 | 943,864 | ||||||
Range Resources Corp | 14,593 | 989,551 | ||||||
Schlumberger Ltd (Netherlands) | 26,034 | 2,647,398 | ||||||
|
| |||||||
8,224,594 | ||||||||
|
| |||||||
Financials - 4.7% |
| |||||||
Berkshire Hathaway Inc ‘B’ * | 10,953 | 1,513,048 | ||||||
Crown Castle International Corp REIT | 24,485 | 1,971,777 | ||||||
Discover Financial Services | 41,009 | 2,640,569 | ||||||
Moody’s Corp | 27,416 | 2,590,812 | ||||||
|
| |||||||
8,716,206 | ||||||||
|
| |||||||
Health Care - 22.1% |
| |||||||
AbbVie Inc | 141,543 | 8,175,524 | ||||||
Allergan Inc | 12,331 | 2,197,261 | ||||||
athenahealth Inc * | 3,431 | 451,828 | ||||||
Biogen Idec Inc * | 8,003 | 2,647,473 | ||||||
Express Scripts Holding Co * | 34,280 | 2,421,197 | ||||||
Gilead Sciences Inc * | 20,394 | 2,170,941 | ||||||
Intuitive Surgical Inc * | 3,403 | 1,571,574 | ||||||
Perrigo Co PLC (Ireland) | 14,830 | 2,227,318 | ||||||
Regeneron Pharmaceuticals Inc * | 13,947 | 5,028,173 | ||||||
United Therapeutics Corp * | 43,899 | 5,647,606 | ||||||
Valeant Pharmaceuticals International Inc (Canada) * | 48,550 | 6,369,760 | ||||||
Vertex Pharmaceuticals Inc * | 20,350 | 2,285,508 | ||||||
|
| |||||||
41,194,163 | ||||||||
|
| |||||||
Industrials - 7.9% |
| |||||||
American Airlines Group Inc | 56,133 | 1,991,599 | ||||||
Emerson Electric Co | 24,057 | 1,505,487 |
| Value | |||||||
Pentair PLC (Ireland) | 20,244 | $1,325,780 | ||||||
Precision Castparts Corp | 15,004 | 3,554,148 | ||||||
SolarCity Corp * | 23,862 | 1,422,175 | ||||||
Union Pacific Corp | 45,531 | 4,936,471 | ||||||
|
| |||||||
14,735,660 | ||||||||
|
| |||||||
Information Technology - 34.1% |
| |||||||
Alibaba Group Holding Ltd ADR (Cayman) * | 29,780 | 2,645,953 | ||||||
Alliance Data Systems Corp * | 15,232 | 3,781,649 | ||||||
Apple Inc | 78,246 | 7,883,284 | ||||||
Baidu Inc ADR (Cayman) * | 22,114 | 4,825,938 | ||||||
Facebook Inc ‘A’ * | 89,681 | 7,088,386 | ||||||
Google Inc ‘A’ * | 16,056 | 9,447,511 | ||||||
LinkedIn Corp ‘A’ * | 24,009 | 4,988,830 | ||||||
Qlik Technologies Inc * | 35,106 | 949,266 | ||||||
salesforce.com Inc * | 91,027 | 5,236,783 | ||||||
Splunk Inc * | 7,015 | 388,351 | ||||||
Visa Inc ‘A’ | 31,506 | 6,722,435 | ||||||
VMware Inc ‘A’ * | 31,945 | 2,997,719 | ||||||
Yahoo! Inc * | 159,274 | 6,490,415 | ||||||
|
| |||||||
63,446,520 | ||||||||
|
| |||||||
Materials - 0.5% |
| |||||||
Monsanto Co | 8,377 | 942,496 | ||||||
|
| |||||||
Telecommunication Services - 0.8% |
| |||||||
SoftBank Corp (Japan) | 21,100 | 1,481,152 | ||||||
|
| |||||||
Total Common Stocks | 184,473,174 | |||||||
|
| |||||||
|
| |||||||
|
| |||||||
TOTAL INVESTMENTS - 99.1% | 184,473,174 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.9% | 1,619,421 | |||||||
|
| |||||||
NET ASSETS - 100.0% | $186,092,595 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Information Technology | 34.1% | |||
Consumer Discretionary | 22.6% | |||
Health Care | 22.1% | |||
Industrials | 7.9% | |||
Financials | 4.7% | |||
Energy | 4.4% | |||
Others (each less than 3.0%) | 3.3% | |||
|
| |||
99.1% | ||||
Other Assets & Liabilities, Net | 0.9% | |||
|
| |||
100.0% | ||||
|
|
(b) | Forward foreign currency contracts outstanding as of September 30, 2014 were as follows: |
Currency Purchased | Currency Sold | Expiration | Counterparty | Unrealized Appreciation | ||||||||||||||||
USD | 1,027,012 | JPY | 107,794,059 | 10/14 | BNP | $44,002 | ||||||||||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-51
PACIFIC LIFE FUNDS
PL LARGE-CAP GROWTH FUND
Schedule of Investments (Continued)
September 30, 2014 (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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Common Stocks | |||||||||||||||||
Consumer Discretionary | $42,119,245 | $42,119,245 | $— | $— | ||||||||||||||
Consumer Staples | 3,613,138 | 3,613,138 | — | — | ||||||||||||||
Energy | 8,224,594 | 8,224,594 | — | — | ||||||||||||||
Financials | 8,716,206 | 8,716,206 | — | — | ||||||||||||||
Health Care | 41,194,163 | 41,194,163 | — | — | ||||||||||||||
Industrials | 14,735,660 | 14,735,660 | — | — | ||||||||||||||
Information Technology | 63,446,520 | 63,446,520 | — | — | ||||||||||||||
Materials | 942,496 | 942,496 | — | — | ||||||||||||||
Telecommunication Services | 1,481,152 | — | 1,481,152 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
184,473,174 | 182,992,022 | 1,481,152 | — | |||||||||||||||
Derivatives: | ||||||||||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Forward Foreign Currency Contracts | 44,002 | — | 44,002 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $184,517,176 | $182,992,022 | $1,525,154 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-52
PACIFIC LIFE FUNDS
PL LARGE-CAP VALUE FUND
Schedule of Investments
September 30, 2014 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS - 98.4% | ||||||||
Consumer Discretionary - 15.6% | ||||||||
DISH Network Corp ‘A’ * | 178,039 | $11,497,759 | ||||||
SES SA FDR ‘A’ (Luxembourg) | 99,675 | 3,445,685 | ||||||
Target Corp | 103,648 | 6,496,657 | ||||||
The Home Depot Inc | 73,035 | 6,700,231 | ||||||
Time Warner Cable Inc | 57,433 | 8,241,061 | ||||||
Time Warner Inc | 134,522 | 10,117,400 | ||||||
Twenty-First Century Fox Inc ‘B’ | 210,605 | 7,015,252 | ||||||
|
| |||||||
53,514,045 | ||||||||
|
| |||||||
Consumer Staples - 11.2% | ||||||||
Altria Group Inc | 81,772 | 3,756,606 | ||||||
Anheuser-Busch InBev NV ADR (Belgium) | 36,268 | 4,020,308 | ||||||
CVS Health Corp | 148,118 | 11,788,712 | ||||||
Kimberly-Clark Corp | 49,325 | 5,305,890 | ||||||
Lorillard Inc | 97,970 | 5,869,383 | ||||||
Philip Morris International Inc | 92,537 | 7,717,586 | ||||||
|
| |||||||
38,458,485 | ||||||||
|
| |||||||
Energy - 10.4% | ||||||||
Chevron Corp | 64,149 | 7,654,259 | ||||||
Exxon Mobil Corp | 67,960 | 6,391,638 | ||||||
Halliburton Co | 117,548 | 7,583,021 | ||||||
National Oilwell Varco Inc | 83,801 | 6,377,256 | ||||||
Royal Dutch Shell PLC ‘A’ ADR (United Kingdom) | 53,475 | 4,071,052 | ||||||
Suncor Energy Inc (Canada) | 93,473 | 3,379,049 | ||||||
|
| |||||||
35,456,275 | ||||||||
|
| |||||||
Financials - 26.3% | ||||||||
American Express Co | 86,852 | 7,603,024 | ||||||
American Tower Corp REIT | 48,000 | 4,494,240 | ||||||
Capital One Financial Corp | 53,606 | 4,375,322 | ||||||
Citigroup Inc | 77,338 | 4,007,655 | ||||||
JPMorgan Chase & Co | 211,799 | 12,758,772 | ||||||
Loews Corp | 76,742 | 3,197,072 | ||||||
Marsh & McLennan Cos Inc | 96,362 | 5,043,587 | ||||||
MetLife Inc | 77,493 | 4,162,924 | ||||||
State Street Corp | 85,460 | 6,290,711 | ||||||
Synchrony Financial * | 149,900 | 3,680,045 | ||||||
The Bank of New York Mellon Corp | 104,239 | 4,037,176 | ||||||
The Progressive Corp | 77,868 | 1,968,503 | ||||||
The Travelers Cos Inc | 64,658 | 6,073,972 | ||||||
US Bancorp | 213,597 | 8,934,762 | ||||||
Wells Fargo & Co | 260,663 | 13,520,590 | ||||||
|
| |||||||
90,148,355 | ||||||||
|
| |||||||
Health Care - 9.8% | ||||||||
Amgen Inc | 43,193 | 6,066,889 | ||||||
Johnson & Johnson | 59,522 | 6,344,450 | ||||||
Merck & Co Inc | 115,822 | 6,865,928 | ||||||
Novartis AG ADR (Switzerland) | 42,255 | 3,977,463 | ||||||
Teva Pharmaceutical Industries Ltd ADR (Israel) | 78,930 | 4,242,487 | ||||||
WellPoint Inc | 51,910 | 6,209,474 | ||||||
|
| |||||||
33,706,691 | ||||||||
|
| |||||||
Industrials - 8.6% | ||||||||
General Electric Co | 329,293 | 8,436,487 | ||||||
Honeywell International Inc | 89,974 | 8,378,379 | ||||||
Illinois Tool Works Inc | 75,771 | 6,396,588 | ||||||
United Technologies Corp | 57,499 | 6,071,894 | ||||||
|
| |||||||
29,283,348 | ||||||||
|
| |||||||
Information Technology - 10.0% | ||||||||
EMC Corp | 212,223 | 6,209,645 | ||||||
International Business Machines Corp | 21,713 | 4,121,779 |
Shares | Value | |||||||
Microsoft Corp | 113,125 | $5,244,475 | ||||||
Motorola Solutions Inc | 80,560 | 5,097,837 | ||||||
Nuance Communications Inc * | 210,370 | 3,242,853 | ||||||
TE Connectivity Ltd (Switzerland) | 98,138 | 5,426,050 | ||||||
Xerox Corp | 366,395 | 4,847,406 | ||||||
|
| |||||||
34,190,045 | ||||||||
|
| |||||||
Materials - 3.8% | ||||||||
Air Products & Chemicals Inc | 25,667 | 3,341,330 | ||||||
Crown Holdings Inc * | 120,553 | 5,367,019 | ||||||
Martin Marietta Materials Inc | 33,528 | 4,323,100 | ||||||
|
| |||||||
13,031,449 | ||||||||
|
| |||||||
Telecommunication Services - 1.0% | ||||||||
Vodafone Group PLC ADR (United Kingdom) | 101,846 | 3,349,715 | ||||||
|
| |||||||
Utilities - 1.7% | ||||||||
Sempra Energy | 55,419 | 5,840,054 | ||||||
|
| |||||||
Total Common Stocks | 336,978,462 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT - 1.7% | ||||||||
Money Market Fund - 1.7% | ||||||||
BlackRock Liquidity Funds Treasury | 5,797,744 | 5,797,744 | ||||||
|
| |||||||
Total Short-Term Investment | 5,797,744 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 100.1% | 342,776,206 | |||||||
OTHER ASSETS & LIABILITIES, NET - (0.1%) | (440,910 | ) | ||||||
|
| |||||||
NET ASSETS - 100.0% | $342,335,296 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Financials | 26.3% | |||
Consumer Discretionary | 15.6% | |||
Consumer Staples | 11.2% | |||
Energy | 10.4% | |||
Information Technology | 10.0% | |||
Health Care | 9.8% | |||
Industrials | 8.6% | |||
Materials | 3.8% | |||
Others (each less than 3.0%) | 4.4% | |||
|
| |||
100.1% | ||||
Other Assets & Liabilities, Net | (0.1% | ) | ||
|
| |||
100.0% | ||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-53
PACIFIC LIFE FUNDS
PL LARGE-CAP VALUE FUND
Schedule of Investments (Continued)
September 30, 2014 (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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Common Stocks | |||||||||||||||||
Consumer Discretionary | $53,514,045 | $50,068,360 | $3,445,685 | $— | ||||||||||||||
Consumer Staples | 38,458,485 | 38,458,485 | — | — | ||||||||||||||
Energy | 35,456,275 | 35,456,275 | — | — | ||||||||||||||
Financials | 90,148,355 | 90,148,355 | — | — | ||||||||||||||
Health Care | 33,706,691 | 33,706,691 | — | — | ||||||||||||||
Industrials | 29,283,348 | 29,283,348 | — | — | ||||||||||||||
Information Technology | 34,190,045 | 34,190,045 | — | — | ||||||||||||||
Materials | 13,031,449 | 13,031,449 | — | — | ||||||||||||||
Telecommunication Services | 3,349,715 | 3,349,715 | — | — | ||||||||||||||
Utilities | 5,840,054 | 5,840,054 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
336,978,462 | 333,532,777 | 3,445,685 | — | |||||||||||||||
Short-Term Investment | 5,797,744 | 5,797,744 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $342,776,206 | $339,330,521 | $3,445,685 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-54
PACIFIC LIFE FUNDS
PL MAIN STREET® CORE FUND
Schedule of Investments
September 30, 2014 (Unaudited)
| Value | |||||||
PREFERRED STOCKS - 0.1% | ||||||||
Consumer Staples - 0.1% |
| |||||||
Henkel AG & Co KGaA (Germany) | 3,460 | $345,509 | ||||||
|
| |||||||
Total Preferred Stocks | 345,509 | |||||||
|
| |||||||
COMMON STOCKS - 98.1% | ||||||||
Consumer Discretionary - 11.7% | ||||||||
AutoZone Inc * | 10,310 | 5,254,595 | ||||||
Comcast Corp ‘A’ | 130,250 | 7,004,845 | ||||||
Delphi Automotive PLC (United Kingdom) | 58,350 | 3,579,189 | ||||||
General Motors Co | 97,400 | 3,110,956 | ||||||
PVH Corp | 12,210 | 1,479,242 | ||||||
The Home Depot Inc | 48,700 | 4,467,738 | ||||||
The TJX Cos Inc | 46,780 | 2,767,973 | ||||||
Twenty-First Century Fox Inc ‘A’ | 57,610 | 1,975,447 | ||||||
|
| |||||||
29,639,985 | ||||||||
|
| |||||||
Consumer Staples - 9.5% | ||||||||
Diageo PLC (United Kingdom) | 178,170 | 5,151,571 | ||||||
Henkel AG & Co KGaA (Germany) | 54,194 | 5,065,069 | ||||||
Mondelez International Inc ‘A’ | 204,880 | 7,020,213 | ||||||
Philip Morris International Inc | 80,605 | 6,722,457 | ||||||
|
| |||||||
23,959,310 | ||||||||
|
| |||||||
Energy - 8.4% | ||||||||
Chevron Corp | 60,244 | 7,188,314 | ||||||
National Oilwell Varco Inc | 87,100 | 6,628,310 | ||||||
Noble Energy Inc | 108,736 | 7,433,193 | ||||||
|
| |||||||
21,249,817 | ||||||||
|
| |||||||
Financials - 17.4% | ||||||||
American International Group Inc | 89,340 | 4,826,147 | ||||||
CIT Group Inc | 79,590 | 3,657,956 | ||||||
Citigroup Inc | 141,727 | 7,344,293 | ||||||
CME Group Inc ‘A’ | 67,170 | 5,370,577 | ||||||
Digital Realty Trust Inc REIT | 14,380 | 897,024 | ||||||
Discover Financial Services | 62,577 | 4,029,333 | ||||||
Genworth Financial Inc ‘A’ * | 193,560 | 2,535,636 | ||||||
JPMorgan Chase & Co | 95,440 | 5,749,306 | ||||||
Lincoln National Corp | 33,640 | 1,802,431 | ||||||
Marsh & McLennan Cos Inc | 56,760 | 2,970,818 | ||||||
McGraw Hill Financial Inc | 55,748 | 4,707,919 | ||||||
|
| |||||||
43,891,440 | ||||||||
|
| |||||||
Health Care - 15.8% | ||||||||
AbbVie Inc | 73,423 | 4,240,912 | ||||||
Actavis PLC (Ireland) * | 25,750 | 6,212,960 | ||||||
Allergan Inc | 22,970 | 4,093,024 | ||||||
Covidien PLC (Ireland) | 14,370 | 1,243,149 | ||||||
Express Scripts Holding Co * | 66,029 | 4,663,628 | ||||||
Gilead Sciences Inc * | 66,370 | 7,065,086 | ||||||
Intuitive Surgical Inc * | 1,060 | 489,529 | ||||||
Pfizer Inc | 191,203 | 5,653,873 | ||||||
UnitedHealth Group Inc | 39,100 | 3,372,375 | ||||||
Zoetis Inc | 81,180 | 2,999,601 | ||||||
|
| |||||||
40,034,137 | ||||||||
|
| |||||||
Industrials - 10.2% | ||||||||
Canadian National Railway Co (Canada) | 61,610 | 4,371,846 | ||||||
Deere & Co | 73,430 | 6,020,526 | ||||||
General Electric Co | 282,050 | 7,226,121 | ||||||
Republic Services Inc | 59,910 | 2,337,688 | ||||||
Tyco International Ltd (Switzerland) | 128,525 | 5,728,359 | ||||||
|
| |||||||
25,684,540 | ||||||||
|
|
| Value | |||||||
Information Technology - 19.8% | ||||||||
Amdocs Ltd (United Kingdom) | 78,670 | $3,609,380 | ||||||
Apple Inc | 100,054 | 10,080,440 | ||||||
Applied Materials Inc | 132,750 | 2,868,727 | ||||||
eBay Inc * | 106,390 | 6,024,866 | ||||||
Facebook Inc ‘A’ * | 45,290 | 3,579,722 | ||||||
Google Inc ‘A’ * | 8,426 | 4,957,943 | ||||||
Google Inc ‘C’ * | 12,716 | 7,341,710 | ||||||
MasterCard Inc ‘A’ | 71,040 | 5,251,277 | ||||||
Western Digital Corp | 25,610 | 2,492,365 | ||||||
Xerox Corp | 302,080 | 3,996,518 | ||||||
|
| |||||||
50,202,948 | ||||||||
|
| |||||||
Materials - 2.1% | ||||||||
Teck Resources Ltd ‘B’ (Canada) | 66,600 | 1,258,074 | ||||||
Vulcan Materials Co | 65,670 | 3,955,304 | ||||||
|
| |||||||
5,213,378 | ||||||||
|
| |||||||
Telecommunication Services - 1.7% | ||||||||
Verizon Communications Inc | 85,380 | 4,268,146 | ||||||
|
| |||||||
Utilities - 1.5% | ||||||||
Exelon Corp | 114,010 | 3,886,601 | ||||||
|
| |||||||
Total Common Stocks | 248,030,302 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT - 2.1% | ||||||||
Money Market Fund - 2.1% | ||||||||
BlackRock Liquidity Funds Treasury | 5,231,367 | 5,231,367 | ||||||
|
| |||||||
Total Short-Term Investment | 5,231,367 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 100.3% | 253,607,178 | |||||||
OTHER ASSETS & LIABILITIES, NET - (0.3%) | (839,747 | ) | ||||||
|
| |||||||
NET ASSETS - 100.0% | $252,767,431 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Information Technology | 19.8% | |||
Financials | 17.4% | |||
Health Care | 15.8% | |||
Consumer Discretionary | 11.7% | |||
Industrials | 10.2% | |||
Consumer Staples | 9.6% | |||
Energy | 8.4% | |||
Others (each less than 3.0%) | 7.4% | |||
|
| |||
100.3% | ||||
Other Assets & Liabilities, Net | (0.3% | ) | ||
|
| |||
100.0% | ||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-55
PACIFIC LIFE FUNDS
PL MAIN STREET CORE FUND
Schedule of Investments (Continued)
September 30, 2014 (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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Preferred Stocks (1) | $345,509 | $— | $345,509 | $— | |||||||||||||
Common Stocks | ||||||||||||||||||
Consumer Discretionary | 29,639,985 | 29,639,985 | — | — | ||||||||||||||
Consumer Staples | 23,959,310 | 13,742,670 | 10,216,640 | — | ||||||||||||||
Energy | 21,249,817 | 21,249,817 | — | — | ||||||||||||||
Financials | 43,891,440 | 43,891,440 | — | — | ||||||||||||||
Health Care | 40,034,137 | 40,034,137 | — | — | ||||||||||||||
Industrials | 25,684,540 | 25,684,540 | — | — | ||||||||||||||
Information Technology | 50,202,948 | 50,202,948 | — | — | ||||||||||||||
Materials | 5,213,378 | 5,213,378 | — | — | ||||||||||||||
Telecommunication Services | 4,268,146 | 4,268,146 | — | — | ||||||||||||||
Utilities | 3,886,601 | 3,886,601 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
248,030,302 | 237,813,662 | 10,216,640 | — | |||||||||||||||
Short-Term Investment | 5,231,367 | 5,231,367 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $253,607,178 | $243,045,029 | $10,562,149 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
(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-91 |
A-56
PACIFIC LIFE FUNDS
PL MID-CAP EQUITY FUND
Schedule of Investments
September 30, 2014 (Unaudited)
| Value | |||||||
COMMON STOCKS - 95.2% |
| |||||||
Consumer Discretionary - 19.9% |
| |||||||
Advance Auto Parts Inc | 5,617 | $731,895 | ||||||
AMC Networks Inc ‘A’ * | 33,531 | 1,958,881 | ||||||
Big Lots Inc | 72,346 | 3,114,495 | ||||||
Chipotle Mexican Grill Inc * | 3,565 | 2,376,393 | ||||||
Discovery Communications Inc ‘C’ * | 17,896 | 667,163 | ||||||
Dollar Tree Inc * | 38,247 | 2,144,509 | ||||||
DR Horton Inc | 58,902 | 1,208,669 | ||||||
Expedia Inc | 12,098 | 1,060,027 | ||||||
HomeAway Inc * | 41,249 | 1,464,340 | ||||||
Lear Corp | 21,740 | 1,878,553 | ||||||
Life Time Fitness Inc * | 13,035 | 657,485 | ||||||
LKQ Corp * | 63,015 | 1,675,569 | ||||||
lululemon athletica Inc * | 35,668 | 1,498,413 | ||||||
O’Reilly Automotive Inc * | 3,953 | 594,373 | ||||||
Panera Bread Co ‘A’ * | 13,198 | 2,147,579 | ||||||
Ross Stores Inc | 34,876 | 2,635,928 | ||||||
Tenneco Inc * | 15,647 | 818,495 | ||||||
The Priceline Group Inc * | 1,984 | 2,298,623 | ||||||
Thor Industries Inc | 22,945 | 1,181,668 | ||||||
TripAdvisor Inc * | 32,717 | 2,990,988 | ||||||
TRW Automotive Holdings Corp * | 72,053 | 7,295,366 | ||||||
|
| |||||||
40,399,412 | ||||||||
|
| |||||||
Consumer Staples - 5.1% |
| |||||||
Casey’s General Stores Inc | 13,356 | 957,625 | ||||||
Molson Coors Brewing Co ‘B’ | 14,161 | 1,054,145 | ||||||
Monster Beverage Corp * | 14,928 | 1,368,450 | ||||||
Sanderson Farms Inc | 11,805 | 1,038,250 | ||||||
The JM Smucker Co | 15,660 | 1,550,183 | ||||||
Tyson Foods Inc ‘A’ | 113,663 | 4,474,912 | ||||||
|
| |||||||
10,443,565 | ||||||||
|
| |||||||
Energy - 6.0% |
| |||||||
Antero Resources Corp * | 61,610 | 3,381,827 | ||||||
Bristow Group Inc | 22,387 | 1,504,406 | ||||||
Diamondback Energy Inc * | 20,025 | 1,497,470 | ||||||
Energen Corp | 10,974 | 792,762 | ||||||
Gulfport Energy Corp * | 68,086 | 3,635,792 | ||||||
Western Refining Inc | 34,210 | 1,436,478 | ||||||
|
| |||||||
12,248,735 | ||||||||
|
| |||||||
Financials - 11.0% |
| |||||||
American Capital Agency Corp REIT | 42,629 | 905,866 | ||||||
Comerica Inc | 22,172 | 1,105,496 | ||||||
KeyCorp | 634,741 | 8,461,098 | ||||||
Lincoln National Corp | 18,480 | 990,158 | ||||||
Principal Financial Group Inc | 18,686 | 980,454 | ||||||
Regions Financial Corp | 206,144 | 2,069,686 | ||||||
Signature Bank * | 14,754 | 1,653,333 | ||||||
The Hartford Financial Services Group Inc | 169,105 | 6,299,161 | ||||||
|
| |||||||
22,465,252 | ||||||||
|
| |||||||
Health Care - 10.6% |
| |||||||
Acorda Therapeutics Inc * | 27,826 | 942,745 | ||||||
Air Methods Corp * | 21,253 | 1,180,604 | ||||||
Akorn Inc * | 27,616 | 1,001,632 | ||||||
Catamaran Corp (Canada) * | 45,939 | 1,936,329 | ||||||
DaVita HealthCare Partners Inc * | 38,904 | 2,845,439 | ||||||
Isis Pharmaceuticals Inc * | 24,768 | 961,741 | ||||||
Medivation Inc * | 21,069 | 2,083,092 | ||||||
PAREXEL International Corp * | 24,287 | 1,532,267 | ||||||
PerkinElmer Inc | 46,299 | 2,018,636 | ||||||
Perrigo Co PLC (Ireland) | 19,994 | 3,002,899 | ||||||
The Cooper Cos Inc | 8,750 | 1,362,813 | ||||||
Universal Health Services Inc ‘B’ | 24,908 | 2,602,886 | ||||||
|
| |||||||
21,471,083 | ||||||||
|
|
| Value | |||||||
Industrials - 8.6% |
| |||||||
AECOM Technology Corp * | 59,089 | $1,994,254 | ||||||
Chart Industries Inc * | 16,031 | 979,975 | ||||||
Con-way Inc | 20,016 | 950,760 | ||||||
Exelis Inc | 122,127 | 2,019,981 | ||||||
Generac Holdings Inc * | 7,235 | 293,307 | ||||||
Huntington Ingalls Industries Inc | 3,264 | 340,141 | ||||||
JetBlue Airways Corp * | 168,774 | 1,792,380 | ||||||
Kirby Corp * | 13,760 | 1,621,616 | ||||||
Manpowergroup Inc | 22,621 | 1,585,732 | ||||||
Southwest Airlines Co | 23,709 | 800,653 | ||||||
Spirit Airlines Inc * | 20,162 | 1,394,001 | ||||||
Textron Inc | 32,881 | 1,183,387 | ||||||
Trinity Industries Inc | 38,678 | 1,807,036 | ||||||
United Rentals Inc * | 5,403 | 600,273 | ||||||
Vectrus Inc * | 6,295 | 122,936 | ||||||
|
| |||||||
17,486,432 | ||||||||
|
| |||||||
Information Technology - 16.2% |
| |||||||
Arrow Electronics Inc * | 18,514 | 1,024,750 | ||||||
Avago Technologies Ltd (Singapore) | 34,484 | 3,000,108 | ||||||
Avnet Inc | 62,801 | 2,606,242 | ||||||
Computer Sciences Corp | 117,871 | 7,207,812 | ||||||
DST Systems Inc | 15,538 | 1,303,949 | ||||||
FEI Co | 5,772 | 435,324 | ||||||
Fidelity National Information Services Inc | 26,299 | 1,480,634 | ||||||
IAC/InterActiveCorp | 29,828 | 1,965,665 | ||||||
iGATE Corp * | 34,503 | 1,266,950 | ||||||
Lam Research Corp | 11,357 | 848,368 | ||||||
NXP Semiconductor NV (Netherlands) * | 41,004 | 2,805,904 | ||||||
Palo Alto Networks Inc * | 14,961 | 1,467,674 | ||||||
Seagate Technology PLC (Ireland) | 50,953 | 2,918,078 | ||||||
Skyworks Solutions Inc | 43,529 | 2,526,858 | ||||||
Yelp Inc * | 29,339 | 2,002,387 | ||||||
|
| |||||||
32,860,703 | ||||||||
|
| |||||||
Materials - 9.5% |
| |||||||
Allegheny Technologies Inc | 17,718 | 657,338 | ||||||
CF Industries Holdings Inc | 8,076 | 2,254,981 | ||||||
Compass Minerals International Inc | 41,356 | 3,485,484 | ||||||
Eagle Materials Inc | 10,674 | 1,086,933 | ||||||
KapStone Paper & Packaging Corp * | 45,445 | 1,271,097 | ||||||
Louisiana-Pacific Corp * | 45,341 | 616,184 | ||||||
Rockwood Holdings Inc | 13,994 | 1,069,841 | ||||||
US Silica Holdings Inc | 130,229 | 8,140,615 | ||||||
Westlake Chemical Corp | 9,014 | 780,522 | ||||||
|
| |||||||
19,362,995 | ||||||||
|
| |||||||
Utilities - 8.3% |
| |||||||
Atmos Energy Corp | 201,890 | 9,630,153 | ||||||
DTE Energy Co | 69,853 | 5,314,416 | ||||||
Questar Corp | 88,517 | 1,973,044 | ||||||
|
| |||||||
16,917,613 | ||||||||
|
| |||||||
Total Common Stocks |
| 193,655,790 | ||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-57
PACIFIC LIFE FUNDS
PL MID-CAP EQUITY FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
| Value | |||||||
SHORT-TERM INVESTMENT - 4.5% |
| |||||||
Money Market Fund - 4.5% |
| |||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 9,193,985 | $9,193,985 | ||||||
|
| |||||||
Total Short-Term Investment | 9,193,985 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 99.7% | 202,849,775 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.3% | 595,842 | |||||||
|
| |||||||
NET ASSETS - 100.0% | $203,445,617 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Consumer Discretionary | 19.9% | |||
Information Technology | 16.2% | |||
Financials | 11.0% | |||
Health Care | 10.6% | |||
Materials | 9.5% | |||
Industrials | 8.6% | |||
Utilities | 8.3% | |||
Energy | 6.0% | |||
Consumer Staples | 5.1% | |||
Short-Term Investment | 4.5% | |||
|
| |||
99.7% | ||||
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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant | Level 3 Significant | |||||||||||||||
Assets | Common Stocks (1) | $193,655,790 | $193,655,790 | $— | $— | |||||||||||||
Short-Term Investment | 9,193,985 | 9,193,985 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $202,849,775 | $202,849,775 | $— | $— | ||||||||||||||
|
|
|
|
|
|
|
|
(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-91 |
A-58
PACIFIC LIFE FUNDS
PL MID-CAP GROWTH FUND
Schedule of Investments
September 30, 2014 (Unaudited)
| Value | |||||||
COMMON STOCKS - 99.1% | ||||||||
Consumer Discretionary - 22.9% | ||||||||
Burberry Group PLC (United Kingdom) | 40,296 | $982,941 | ||||||
Carter’s Inc | 15,498 | 1,201,405 | ||||||
DSW Inc ‘A’ | 26,208 | 789,123 | ||||||
Dunkin’ Brands Group Inc | 34,060 | 1,526,569 | ||||||
Gentex Corp | 39,171 | 1,048,608 | ||||||
L Brands Inc | 18,189 | 1,218,299 | ||||||
LKQ Corp * | 64,690 | 1,720,107 | ||||||
Mattel Inc | 42,380 | 1,298,947 | ||||||
Nordstrom Inc | 18,801 | 1,285,424 | ||||||
Norwegian Cruise Line Holdings Ltd (Bermuda) * | 29,141 | 1,049,659 | ||||||
Panera Bread Co ‘A’ * | 6,030 | 981,202 | ||||||
Ross Stores Inc | 22,919 | 1,732,218 | ||||||
Tiffany & Co | 9,320 | 897,609 | ||||||
Ulta Salon Cosmetics & Fragrance Inc * | 14,850 | 1,754,825 | ||||||
Urban Outfitters Inc * | 38,036 | 1,395,921 | ||||||
|
| |||||||
18,882,857 | ||||||||
|
| |||||||
Consumer Staples - 6.3% | ||||||||
Brown-Forman Corp ‘B’ | 9,010 | 812,882 | ||||||
Coty Inc ‘A’ | 48,560 | 803,668 | ||||||
Mead Johnson Nutrition Co | 19,756 | 1,900,922 | ||||||
The Hain Celestial Group Inc * | 16,729 | 1,712,213 | ||||||
|
| |||||||
5,229,685 | ||||||||
|
| |||||||
Energy - 6.2% | ||||||||
Cabot Oil & Gas Corp | 34,599 | 1,131,041 | ||||||
Continental Resources Inc * | 22,198 | 1,475,723 | ||||||
Dril-Quip Inc * | 9,140 | 817,116 | ||||||
Oasis Petroleum Inc * | 15,674 | 655,330 | ||||||
Southwestern Energy Co * | 29,851 | 1,043,292 | ||||||
|
| |||||||
5,122,502 | ||||||||
|
| |||||||
Financials - 8.4% | ||||||||
CME Group Inc ‘A’ | 3,034 | 242,584 | ||||||
First Republic Bank | 31,720 | 1,566,334 | ||||||
Northern Trust Corp | 33,220 | 2,259,957 | ||||||
Oaktree Capital Group LLC | 11,061 | 565,217 | ||||||
Signature Bank * | 14,510 | 1,625,991 | ||||||
UMB Financial Corp | 11,357 | 619,524 | ||||||
|
| |||||||
6,879,607 | ||||||||
|
| |||||||
Health Care - 18.1% | ||||||||
Acadia Healthcare Co Inc * | 15,530 | 753,205 | ||||||
ACADIA Pharmaceuticals Inc * | 17,541 | 434,315 | ||||||
Align Technology Inc * | 21,042 | 1,087,451 | ||||||
Alkermes PLC (Ireland) * | 18,275 | 783,449 | ||||||
BioMarin Pharmaceutical Inc * | 14,597 | 1,053,320 | ||||||
Cerner Corp * | 11,133 | 663,193 | ||||||
DENTSPLY International Inc | 26,790 | 1,221,624 | ||||||
Henry Schein Inc * | 10,450 | 1,217,112 | ||||||
Humana Inc | 7,914 | 1,031,115 | ||||||
Incyte Corp * | 8,945 | 438,752 | ||||||
Intuitive Surgical Inc * | 4,503 | 2,079,575 | ||||||
Medivation Inc * | 12,730 | 1,258,615 | ||||||
Varian Medical Systems Inc * | 18,492 | 1,481,579 | ||||||
Zoetis Inc | 37,920 | 1,401,144 | ||||||
|
| |||||||
14,904,449 | ||||||||
|
| |||||||
Industrials - 15.7% | ||||||||
Allison Transmission Holdings Inc | 17,261 | 491,766 | ||||||
Expeditors International of Washington Inc | 42,210 | 1,712,882 | ||||||
Fastenal Co | 42,146 | 1,892,355 | ||||||
Flowserve Corp | 22,205 | 1,565,897 | ||||||
Fortune Brands Home & Security Inc | 40,227 | 1,653,732 | ||||||
Jacobs Engineering Group Inc * | 16,164 | 789,127 | ||||||
Joy Global Inc | 20,606 | 1,123,851 |
| Value | |||||||
Polypore International Inc * | 29,063 | $1,130,841 | ||||||
Stericycle Inc * | 10,943 | 1,275,516 | ||||||
Verisk Analytics Inc ‘A’ * | 20,920 | 1,273,819 | ||||||
|
| |||||||
12,909,786 | ||||||||
|
| |||||||
Information Technology - 19.8% | ||||||||
Alliance Data Systems Corp * | 4,257 | 1,056,885 | ||||||
ANSYS Inc * | 13,170 | 996,574 | ||||||
CoStar Group Inc * | 5,318 | 827,162 | ||||||
Electronic Arts Inc * | 65,107 | 2,318,460 | ||||||
F5 Networks Inc * | 13,438 | 1,595,628 | ||||||
FLIR Systems Inc | 30,900 | 968,406 | ||||||
Microchip Technology Inc | 40,909 | 1,932,132 | ||||||
Pandora Media Inc * | 65,143 | 1,573,855 | ||||||
ServiceNow Inc * | 14,123 | 830,150 | ||||||
Solera Holdings Inc | 12,071 | 680,322 | ||||||
Teradata Corp * | 30,520 | 1,279,398 | ||||||
Vantiv Inc ‘A’ * | 45,767 | 1,414,200 | ||||||
WebMD Health Corp * | 19,966 | 834,778 | ||||||
|
| |||||||
16,307,950 | ||||||||
|
| |||||||
Materials - 1.7% | ||||||||
The Scotts Miracle-Gro Co ‘A’ | 14,613 | 803,715 | ||||||
The Valspar Corp | 7,594 | 599,850 | ||||||
|
| |||||||
1,403,565 | ||||||||
|
| |||||||
Total Common Stocks | 81,640,401 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT - 1.3% | ||||||||
Money Market Fund - 1.3% | ||||||||
BlackRock Liquidity Funds Treasury | 1,093,152 | 1,093,152 | ||||||
|
| |||||||
Total Short-Term Investment |
| 1,093,152 | ||||||
|
| |||||||
TOTAL INVESTMENTS - 100.4% | 82,733,553 | |||||||
OTHER ASSETS & LIABILITIES, NET - (0.4%) | (368,494 | ) | ||||||
|
| |||||||
NET ASSETS - 100.0% | $82,365,059 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Consumer Discretionary | 22.9% | |||
Information Technology | 19.8% | |||
Health Care | 18.1% | |||
Industrials | 15.7% | |||
Financials | 8.4% | |||
Consumer Staples | 6.3% | |||
Energy | 6.2% | |||
Others (each less than 3.0%) | 3.0% | |||
|
| |||
100.4% | ||||
Other Assets & Liabilities, Net | (0.4% | ) | ||
|
| |||
100.0% | ||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-59
PACIFIC LIFE FUNDS
PL MID-CAP GROWTH FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
(b) | Transactions in written options for the six-month period ended September 30, 2014 were as follows: |
Number of Contracts | Premium | |||||||
Outstanding, March 31, 2014 | 161 | $30,820 | ||||||
Call Options Written | 250 | 8,117 | ||||||
Put Options Written | 1,503 | 59,080 | ||||||
Call Options Closed | (45 | ) | (5,175 | ) | ||||
Put Options Closed | (1,344 | ) | (53,631 | ) | ||||
Expired Call Options | (250 | ) | (8,117 | ) | ||||
Expired Put Options | (216 | ) | (26,728 | ) | ||||
|
|
|
| |||||
Outstanding, September 30, 2014 | 59 | $4,366 | ||||||
|
|
|
|
(c) | Premium received and value of written options outstanding as of September 30, 2014 were as follows: |
Options on Securities
Description | Exercise Price | Expiration Date | Exchange | Number of Contracts | Premium | Value | ||||||||||||||||
Put - Pandora Media Inc | $23.00 | 10/18/14 | CME | 59 | $4,366 | ($3,422 | ) | |||||||||||||||
|
|
|
| |||||||||||||||||||
Total Written Options | $4,366 | ($3,422 | ) | |||||||||||||||||||
|
|
|
|
(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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Common Stocks | |||||||||||||||||
Consumer Discretionary | $18,882,857 | $17,899,916 | $982,941 | $— | ||||||||||||||
Consumer Staples | 5,229,685 | 5,229,685 | — | — | ||||||||||||||
Energy | 5,122,502 | 5,122,502 | — | — | ||||||||||||||
Financials | 6,879,607 | 6,879,607 | — | — | ||||||||||||||
Health Care | 14,904,449 | 14,904,449 | — | — | ||||||||||||||
Industrials | 12,909,786 | 12,909,786 | — | — | ||||||||||||||
Information Technology | 16,307,950 | 16,307,950 | — | — | ||||||||||||||
Materials | 1,403,565 | 1,403,565 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
81,640,401 | 80,657,460 | 982,941 | — | |||||||||||||||
Short-Term Investment | 1,093,152 | 1,093,152 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Assets | 82,733,553 | 81,750,612 | 982,941 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Liabilities | Derivatives: | |||||||||||||||||
Equity Contracts | ||||||||||||||||||
Written Options | (3,422 | ) | (3,422 | ) | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities | (3,422 | ) | (3,422 | ) | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $82,730,131 | $81,747,190 | $982,941 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-60
PACIFIC LIFE FUNDS
PL SMALL-CAP GROWTH FUND
Schedule of Investments
September 30, 2014 (Unaudited)
| Value | |||||||
WARRANTS - 0.0% |
| |||||||
Health Care - 0.0% |
| |||||||
Neuralstem Inc Exercise @ $3.64 | 15,525 | $20,881 | ||||||
|
| |||||||
Total Warrants | 20,881 | |||||||
|
| |||||||
COMMON STOCKS - 96.8% |
| |||||||
Consumer Discretionary - 13.0% | ||||||||
2U Inc * | 31,222 | 486,751 | ||||||
Asbury Automotive Group Inc * | 850 | 54,757 | ||||||
Buffalo Wild Wings Inc * | 211 | 28,331 | ||||||
Chuy’s Holdings Inc * | 17,589 | 552,119 | ||||||
Coupons.com Inc * | 13,933 | 166,639 | ||||||
Deckers Outdoor Corp * | 10,094 | 980,935 | ||||||
Fiesta Restaurant Group Inc * | 2,600 | 129,168 | ||||||
iRobot Corp * | 21,829 | 664,693 | ||||||
LifeLock Inc * | 68,161 | 974,021 | ||||||
Lithia Motors Inc ‘A’ | 2,281 | 172,649 | ||||||
Mattress Firm Holding Corp * | 15,024 | 902,341 | ||||||
Rentrak Corp * | 16,204 | 987,472 | ||||||
Restoration Hardware Holdings Inc * | 9,814 | 780,704 | ||||||
Skechers U.S.A. Inc ‘A’ * | 9,427 | 502,553 | ||||||
Sonic Corp * | 30,835 | 689,471 | ||||||
Tempur Sealy International Inc * | 11,343 | 637,136 | ||||||
Zoe’s Kitchen Inc * | 18,973 | 583,609 | ||||||
zulily Inc ‘A’ * | 20,934 | 793,189 | ||||||
|
| |||||||
10,086,538 | ||||||||
|
| |||||||
Consumer Staples - 3.3% | ||||||||
The Fresh Market Inc * | 5,600 | 195,608 | ||||||
The Hain Celestial Group Inc * | 9,809 | 1,003,951 | ||||||
The WhiteWave Foods Co * | 21,946 | 797,298 | ||||||
United Natural Foods Inc * | 9,427 | 579,383 | ||||||
|
| |||||||
2,576,240 | ||||||||
|
| |||||||
Energy - 3.2% | ||||||||
Forum Energy Technologies Inc * | 12,597 | 385,594 | ||||||
GasLog Ltd (Bermuda) | 21,225 | 467,162 | ||||||
Kodiak Oil & Gas Corp (Canada) * | 55,252 | 749,770 | ||||||
Parsley Energy Inc ‘A’ * | 29,123 | 621,194 | ||||||
RigNet Inc * | 5,993 | 242,417 | ||||||
|
| |||||||
2,466,137 | ||||||||
|
| |||||||
Financials - 6.9% | ||||||||
Artisan Partners Asset Management Inc ‘A’ | 3,739 | 194,615 | ||||||
BankUnited Inc | 12,553 | 382,741 | ||||||
E*TRADE Financial Corp * | 26,856 | 606,677 | ||||||
Evercore Partners Inc ‘A’ | 7,948 | 373,556 | ||||||
Financial Engines Inc | 4,878 | 166,901 | ||||||
Janus Capital Group Inc | 52,729 | 766,680 | ||||||
MarketAxess Holdings Inc | 1,100 | 68,046 | ||||||
PrivateBancorp Inc | 6,400 | 191,424 | ||||||
Springleaf Holdings Inc * | 29,470 | 940,977 | ||||||
Stifel Financial Corp * | 16,285 | 763,604 | ||||||
SVB Financial Group * | 3,452 | 386,935 | ||||||
Western Alliance Bancorp * | 8,600 | 205,540 | ||||||
WisdomTree Investments Inc * | 29,192 | 332,205 | ||||||
|
| |||||||
5,379,901 | ||||||||
|
| |||||||
Health Care - 23.8% | ||||||||
ACADIA Pharmaceuticals Inc * | 29,513 | 730,742 | ||||||
Aegerion Pharmaceuticals Inc * | 11,997 | 400,460 | ||||||
Agios Pharmaceuticals Inc * | 18,354 | 1,126,018 | ||||||
Air Methods Corp * | 14,377 | 798,643 |
| �� | Value | ||||||
Akorn Inc * | 12,766 | $463,023 | ||||||
Align Technology Inc * | 15,305 | 790,962 | ||||||
Alnylam Pharmaceuticals Inc * | 11,268 | 880,031 | ||||||
Avanir Pharmaceuticals Inc * | 33,812 | 403,039 | ||||||
Celldex Therapeutics Inc * | 25,645 | 332,359 | ||||||
Charles River Laboratories International Inc * | 3,700 | 221,038 | ||||||
DexCom Inc * | 19,498 | 779,725 | ||||||
Epizyme Inc * | 11,139 | 301,978 | ||||||
ExamWorks Group Inc * | 27,083 | 886,968 | ||||||
Fluidigm Corp * | 9,175 | 224,788 | ||||||
Foundation Medicine Inc * | 18,321 | 347,366 | ||||||
Insulet Corp * | 9,724 | 358,329 | ||||||
Intercept Pharmaceuticals Inc * | 2,376 | 562,375 | ||||||
LifePoint Hospitals Inc * | 8,196 | 567,081 | ||||||
Medidata Solutions Inc * | 11,676 | 517,130 | ||||||
Pacira Pharmaceuticals Inc * | 6,237 | 604,490 | ||||||
PAREXEL International Corp * | 6,400 | 403,776 | ||||||
Puma Biotechnology Inc * | 3,798 | 906,089 | ||||||
Receptos Inc * | 19,177 | 1,191,083 | ||||||
Revance Therapeutics Inc * | 2,572 | 49,717 | ||||||
Sarepta Therapeutics Inc * | 10,470 | 220,917 | ||||||
Synageva BioPharma Corp * | 7,540 | 518,601 | ||||||
Team Health Holdings Inc * | 20,326 | 1,178,705 | ||||||
Ultragenyx Pharmaceutical Inc * | 7,678 | 434,575 | ||||||
Veeva Systems Inc ‘A’ * | 32,356 | 911,469 | ||||||
Wright Medical Group Inc * | 15,803 | 478,831 | ||||||
Zeltiq Aesthetics Inc * | 42,096 | 952,632 | ||||||
|
| |||||||
18,542,940 | ||||||||
|
| |||||||
Industrials - 10.1% | ||||||||
Air Lease Corp | 12,013 | 390,423 | ||||||
Astronics Corp * | 13,573 | 647,161 | ||||||
Astronics Corp ‘B’ * | 2,514 | 119,415 | ||||||
Genesee & Wyoming Inc ‘A’ * | 4,177 | 398,110 | ||||||
Hexcel Corp * | 10,081 | 400,216 | ||||||
Knight Transportation Inc | 40,897 | 1,120,169 | ||||||
Paylocity Holdings Corp * | 16,378 | 321,828 | ||||||
Polypore International Inc * | 13,600 | 529,176 | ||||||
Rush Enterprises Inc ‘A’ * | 15,909 | 532,156 | ||||||
The Middleby Corp * | 7,565 | 666,703 | ||||||
Trex Co Inc * | 24,513 | 847,414 | ||||||
TriNet Group Inc * | 23,892 | 615,219 | ||||||
US Ecology Inc | 10,538 | 492,757 | ||||||
Woodward Inc | 15,851 | 754,825 | ||||||
|
| |||||||
7,835,572 | ||||||||
|
| |||||||
Information Technology - 34.0% | ||||||||
Ambarella Inc (Cayman) * | 9,830 | 429,276 | ||||||
Arista Networks Inc * | 9,734 | 859,804 | ||||||
Aruba Networks Inc * | 35,303 | 761,839 | ||||||
Autohome Inc ADR (Cayman) * | 4,300 | 180,643 | ||||||
Belden Inc | 2,051 | 131,305 | ||||||
Benefitfocus Inc * | 11,128 | 299,788 | ||||||
Blackhawk Network Holdings Inc * | 4,000 | 129,600 | ||||||
Cavium Inc * | 23,285 | 1,157,963 | ||||||
Cognex Corp * | 31,483 | 1,267,820 | ||||||
comScore Inc * | 26,712 | 972,584 | ||||||
CoStar Group Inc * | 4,995 | 776,922 | ||||||
Cray Inc * | 14,197 | 372,529 | ||||||
Criteo SA ADR (France) * | 16,974 | 571,175 | ||||||
Demandware Inc * | 9,864 | 502,275 | ||||||
EPAM Systems Inc * | 19,655 | 860,692 | ||||||
EVERTEC Inc | 1,961 | 43,809 | ||||||
FARO Technologies Inc * | 15,744 | 799,008 | ||||||
FLIR Systems Inc | 18,421 | 577,314 | ||||||
Fortinet Inc * | 30,943 | 781,775 | ||||||
Gogo Inc * | 32,862 | 554,053 | ||||||
GrubHub Inc * | 22,223 | 760,916 | ||||||
Intersil Corp ‘A’ | 26,548 | 377,247 | ||||||
InvenSense Inc * | 18,778 | 370,490 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-61
PACIFIC LIFE FUNDS
PL SMALL-CAP GROWTH FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
| Value | |||||||
IPG Photonics Corp * | 11,903 | $818,688 | ||||||
Luxoft Holding Inc (United Kingdom) * | 6,653 | 247,492 | ||||||
Materialise NV ADR (Belgium) * | 15,181 | 170,483 | ||||||
MercadoLibre Inc | 7,144 | 776,196 | ||||||
Nimble Storage Inc * | 16,396 | 425,804 | ||||||
Proofpoint Inc * | 14,784 | 549,078 | ||||||
QIWI PLC ADR (Cyprus) | 3,173 | 100,235 | ||||||
Qualys Inc * | 14,197 | 377,640 | ||||||
Rambus Inc * | 58,593 | 731,241 | ||||||
Ruckus Wireless Inc * | 52,866 | 706,290 | ||||||
Shutterstock Inc * | 6,940 | 495,377 | ||||||
Splunk Inc * | 10,465 | 579,342 | ||||||
Stratasys Ltd (Israel) * | 5,271 | 636,631 | ||||||
SunEdison Inc * | 37,841 | 714,438 | ||||||
SunPower Corp * | 25,813 | 874,544 | ||||||
Synaptics Inc * | 11,773 | 861,784 | ||||||
Synchronoss Technologies Inc * | 23,899 | 1,094,096 | ||||||
Tableau Software Inc ‘A’ * | 8,131 | 590,717 | ||||||
Tessera Technologies Inc | 16,706 | 444,045 | ||||||
The Ultimate Software Group Inc * | 6,824 | 965,664 | ||||||
Xoom Corp * | 19,040 | 417,928 | ||||||
Yelp Inc * | 4,452 | 303,849 | ||||||
|
| |||||||
26,420,389 | ||||||||
|
| |||||||
Materials - 2.5% | ||||||||
Allegheny Technologies Inc | 7,589 | 281,552 | ||||||
Eagle Materials Inc | 7,603 | 774,213 | ||||||
Flotek Industries Inc * | 21,797 | 568,248 | ||||||
US Silica Holdings Inc | 5,956 | 372,310 | ||||||
|
| |||||||
1,996,323 | ||||||||
|
| |||||||
Total Common Stocks | 75,304,040 | |||||||
|
|
| Value | |||||||
SHORT-TERM INVESTMENT - 6.4% |
| |||||||
Money Market Fund - 6.4% | ||||||||
BlackRock Liquidity Funds Treasury | 4,950,948 | $4,950,948 | ||||||
|
| |||||||
Total Short-Term Investment | 4,950,948 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 103.2% | 80,275,869 | |||||||
OTHER ASSETS & LIABILITIES, NET - (3.2%) |
| (2,510,265 | ) | |||||
|
| |||||||
NET ASSETS - 100.0% |
| $77,765,604 | ||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Information Technology | 34.0% | |||
Health Care | 23.8% | |||
Consumer Discretionary | 13.0% | |||
Industrials | 10.1% | |||
Financials | 6.9% | |||
Short-Term Investment | 6.4% | |||
Consumer Staples | 3.3% | |||
Energy | 3.2% | |||
Others (each less than 3.0%) | 2.5% | |||
|
| |||
103.2% | ||||
Other Assets & Liabilities, Net | (3.2% | ) | ||
|
| |||
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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant Observable Input | Level 3 Significant Unobservable Input | |||||||||||||||
Assets | Warrants (1) | $20,881 | $— | $20,881 | $— | |||||||||||||
Common Stocks (1) | 75,304,040 | 75,304,040 | — | — | ||||||||||||||
Short-Term Investment | 4,950,948 | 4,950,948 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $80,275,869 | $80,254,988 | $20,881 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
(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-91 |
A-62
PACIFIC LIFE FUNDS
PL SMALL-CAP VALUE FUND
Schedule of Investments
September 30, 2014 (Unaudited)
| Value | |||||||
COMMON STOCKS - 98.3% | ||||||||
Consumer Discretionary - 16.4% | ||||||||
Bloomin’ Brands Inc * | 93,210 | $1,709,471 | ||||||
Brown Shoe Co Inc | 38,460 | 1,043,420 | ||||||
Citi Trends Inc * | 49,890 | 1,102,569 | ||||||
Crocs Inc * | 63,940 | 804,365 | ||||||
Dana Holding Corp | 60,560 | 1,160,935 | ||||||
DineEquity Inc | 11,550 | 942,364 | ||||||
Ethan Allen Interiors Inc | 38,770 | 883,956 | ||||||
GameStop Corp ‘A’ | 33,720 | 1,389,264 | ||||||
Haverty Furniture Cos Inc | 32,620 | 710,790 | ||||||
Helen of Troy Ltd (Bermuda) * | 26,680 | 1,401,234 | ||||||
MarineMax Inc * | 87,630 | 1,476,565 | ||||||
Meritage Homes Corp * | 38,610 | 1,370,655 | ||||||
Office Depot Inc * | 392,480 | 2,017,347 | ||||||
Scholastic Corp | 27,760 | 897,203 | ||||||
Tenneco Inc * | 30,660 | 1,603,825 | ||||||
The Children’s Place Inc | 31,700 | 1,510,822 | ||||||
Thor Industries Inc | 25,110 | 1,293,165 | ||||||
|
| |||||||
21,317,950 | ||||||||
|
| |||||||
Consumer Staples - 3.3% | ||||||||
Cott Corp (Canada) | 246,850 | 1,695,860 | ||||||
Dean Foods Co | 116,570 | 1,544,552 | ||||||
SpartanNash Co | 52,820 | 1,027,349 | ||||||
|
| |||||||
4,267,761 | ||||||||
|
| |||||||
Energy - 3.6% | ||||||||
Bill Barrett Corp * | 81,990 | 1,807,060 | ||||||
Rosetta Resources Inc * | 35,480 | 1,580,989 | ||||||
Stone Energy Corp * | 41,800 | 1,310,848 | ||||||
|
| |||||||
4,698,897 | ||||||||
|
| |||||||
Financials - 27.4% | ||||||||
1st Source Corp | 15,809 | 450,240 | ||||||
Ashford Hospitality Prime Inc REIT | 61,920 | 943,042 | ||||||
Ashford Hospitality Trust Inc REIT | 87,740 | 896,703 | ||||||
Aspen Insurance Holdings Ltd (Bermuda) | 41,080 | 1,756,992 | ||||||
Associated Banc-Corp | 82,090 | 1,430,008 | ||||||
Associated Estates Realty Corp REIT | 100,950 | 1,767,634 | ||||||
CNO Financial Group Inc | 107,320 | 1,820,147 | ||||||
Customers Bancorp Inc * | 56,286 | 1,010,896 | ||||||
DiamondRock Hospitality Co REIT | 102,610 | 1,301,095 | ||||||
Essent Group Ltd (Bermuda) * | 25,570 | 547,454 | ||||||
First BanCorp * | 167,810 | 797,097 | ||||||
First Commonwealth Financial Corp | 111,510 | 935,569 | ||||||
First Niagara Financial Group Inc | 148,100 | 1,233,673 | ||||||
FirstMerit Corp | 90,200 | 1,587,520 | ||||||
Hersha Hospitality Trust REIT | 202,310 | 1,288,715 | ||||||
HomeStreet Inc | 60,620 | 1,035,996 | ||||||
LTC Properties Inc REIT | 35,970 | 1,326,933 | ||||||
Medical Properties Trust Inc REIT | 119,560 | 1,465,806 | ||||||
PacWest Bancorp | 27,890 | 1,149,905 | ||||||
Parkway Properties Inc REIT | 84,220 | 1,581,652 | ||||||
Popular Inc * | 50,190 | 1,477,343 | ||||||
Ramco-Gershenson Properties Trust REIT | 78,620 | 1,277,575 | ||||||
STAG Industrial Inc REIT | 42,100 | 871,891 | ||||||
Susquehanna Bancshares Inc | 168,520 | 1,685,200 | ||||||
Validus Holdings Ltd (Bermuda) | 46,870 | 1,834,492 | ||||||
Webster Financial Corp | 54,590 | 1,590,753 | ||||||
Wilshire Bancorp Inc | 130,840 | 1,207,653 | ||||||
Zions Bancorp | 42,140 | 1,224,588 | ||||||
|
| |||||||
35,496,572 | ||||||||
|
| |||||||
Health Care - 3.5% | ||||||||
Health Net Inc * | 19,640 | 905,600 | ||||||
LifePoint Hospitals Inc * | 26,310 | 1,820,389 |
| Value | |||||||
Molina Healthcare Inc * | 20,200 | $854,460 | ||||||
WellCare Health Plans Inc * | 16,420 | 990,783 | ||||||
|
| |||||||
4,571,232 | ||||||||
|
| |||||||
Industrials - 16.1% | ||||||||
AECOM Technology Corp * | 29,450 | 993,937 | ||||||
Air Transport Services Group Inc * | 146,520 | 1,066,666 | ||||||
Columbus Mckinnon Corp | 71,030 | 1,561,950 | ||||||
Con-way Inc | 25,590 | 1,215,525 | ||||||
General Cable Corp | 59,150 | 891,982 | ||||||
Granite Construction Inc | 31,300 | 995,653 | ||||||
Hawaiian Holdings Inc * | 111,820 | 1,503,979 | ||||||
Hyster-Yale Materials Handling Inc | 13,280 | 951,114 | ||||||
Kelly Services Inc ‘A’ | 35,040 | 549,077 | ||||||
Rush Enterprises Inc ‘A’ * | 29,280 | 979,416 | ||||||
SkyWest Inc | 90,400 | 703,312 | ||||||
Terex Corp | 34,770 | 1,104,643 | ||||||
Tutor Perini Corp * | 62,460 | 1,648,944 | ||||||
United Stationers Inc | 30,250 | 1,136,492 | ||||||
URS Corp | 36,030 | 2,075,688 | ||||||
Viad Corp | 85,270 | 1,760,825 | ||||||
Wabash National Corp * | 133,490 | 1,778,087 | ||||||
|
| |||||||
20,917,290 | ||||||||
|
| |||||||
Information Technology - 19.9% | ||||||||
Advanced Micro Devices Inc * | 190,430 | 649,366 | ||||||
Anixter International Inc | 12,290 | 1,042,684 | ||||||
Arrow Electronics Inc * | 26,900 | 1,488,915 | ||||||
Avnet Inc | 31,280 | 1,298,120 | ||||||
Booz Allen Hamilton Holding Corp | 70,380 | 1,646,892 | ||||||
Convergys Corp | 56,110 | 999,880 | ||||||
CSG Systems International Inc | 29,560 | 776,837 | ||||||
Entegris Inc * | 102,657 | 1,180,555 | ||||||
Fabrinet (Cayman) * | 82,424 | 1,203,390 | ||||||
Finisar Corp * | 43,310 | 720,245 | ||||||
Insight Enterprises Inc * | 64,720 | 1,464,614 | ||||||
Integrated Silicon Solution Inc * | 115,570 | 1,587,932 | ||||||
Jabil Circuit Inc | 73,480 | 1,482,092 | ||||||
Mitel Networks Corp (Canada) * | 137,250 | 1,255,837 | ||||||
MKS Instruments Inc | 49,050 | 1,637,289 | ||||||
Photronics Inc * | 147,650 | 1,188,582 | ||||||
Spansion Inc ‘A’ * | 84,700 | 1,930,313 | ||||||
Sykes Enterprises Inc * | 86,260 | 1,723,475 | ||||||
TTM Technologies Inc * | 112,640 | 767,078 | ||||||
Vishay Intertechnology Inc | 122,830 | 1,755,241 | ||||||
|
| |||||||
25,799,337 | ||||||||
|
| |||||||
Materials - 2.5% | ||||||||
A Schulman Inc | 35,330 | 1,277,533 | ||||||
Graphic Packaging Holding Co * | 82,600 | 1,026,718 | ||||||
RTI International Metals Inc * | 37,600 | 927,216 | ||||||
|
| |||||||
3,231,467 | ||||||||
|
| |||||||
Utilities - 5.6% | ||||||||
Atmos Energy Corp | 35,950 | 1,714,815 | ||||||
PNM Resources Inc | 73,870 | 1,840,102 | ||||||
Southwest Gas Corp | 38,590 | 1,874,702 | ||||||
UGI Corp | 53,535 | 1,825,008 | ||||||
|
| |||||||
7,254,627 | ||||||||
|
| |||||||
Total Common Stocks | 127,555,133 | |||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-63
PACIFIC LIFE FUNDS
PL SMALL-CAP VALUE FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Shares |
| |||||||
SHORT-TERM INVESTMENT - 1.8% | ||||||||
Money Market Fund - 1.8% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 2,384,851 | $2,384,851 | ||||||
|
| |||||||
Total Short-Term Investment | 2,384,851 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 100.1% | 129,939,984 | |||||||
OTHER ASSETS & LIABILITIES, NET - (0.1%) | (182,892 | ) | ||||||
|
| |||||||
NET ASSETS - 100.0% | $129,757,092 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Financials | 27.4% | |||
Information Technology | 19.9% | |||
Consumer Discretionary | 16.4% | |||
Industrials | 16.1% | |||
Utilities | 5.6% | |||
Energy | 3.6% | |||
Health Care | 3.5% | |||
Consumer Staples | 3.3% | |||
Others (each less than 3.0%) | 4.3% | |||
|
| |||
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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Common Stocks (1) | $127,555,133 | $127,555,133 | $— | $— | |||||||||||||
Short-Term Investment | 2,384,851 | 2,384,851 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $129,939,984 | $129,939,984 | $— | $— | ||||||||||||||
|
|
|
|
|
|
|
|
(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-91 |
A-64
PACIFIC LIFE FUNDS
PL REAL ESTATE FUND
Schedule of Investments
September 30, 2014 (Unaudited)
| Value | |||||||
COMMON STOCKS - 96.1% | ||||||||
Consumer Discretionary - 3.1% | ||||||||
Hilton Worldwide Holdings Inc * | 12,389 | $305,141 | ||||||
Starwood Hotels & Resorts Worldwide Inc | 13,045 | 1,085,474 | ||||||
|
| |||||||
1,390,615 | ||||||||
|
| |||||||
Financials - 93.0% | ||||||||
Acadia Realty Trust REIT | 5,986 | 165,094 | ||||||
Alexandria Real Estate Equities Inc REIT | 5,441 | 401,274 | ||||||
Apartment Investment & Management Co ‘A’ REIT | 417 | 13,269 | ||||||
AvalonBay Communities Inc REIT | 17,560 | 2,475,433 | ||||||
Boston Properties Inc REIT | 12,677 | 1,467,490 | ||||||
Camden Property Trust REIT | 13,590 | 931,323 | ||||||
Chesapeake Lodging Trust REIT | 9,418 | 274,535 | ||||||
Cousins Properties Inc REIT | 36,872 | 440,620 | ||||||
CubeSmart REIT | 2,627 | 47,233 | ||||||
DCT Industrial Trust Inc REIT | 11,313 | 84,961 | ||||||
DDR Corp REIT | 2,038 | 34,096 | ||||||
Duke Realty Corp REIT | 20,084 | 345,043 | ||||||
Equity Lifestyle Properties Inc REIT | 15,583 | 660,096 | ||||||
Equity Residential REIT | 62,571 | 3,853,122 | ||||||
Essex Property Trust Inc REIT | 2,911 | 520,341 | ||||||
Federal Realty Investment Trust REIT | 3,029 | 358,815 | ||||||
Forest City Enterprises Inc ‘A’ * | 28,469 | 556,854 | ||||||
General Growth Properties Inc REIT | 79,703 | 1,877,006 | ||||||
HCP Inc REIT | 16,949 | 673,045 | ||||||
Health Care REIT Inc | 4,047 | 252,411 | ||||||
Healthcare Realty Trust Inc REIT | 17,082 | 404,502 | ||||||
Host Hotels & Resorts Inc REIT | 193,998 | 4,137,977 | ||||||
Hudson Pacific Properties Inc REIT | 17,058 | 420,650 | ||||||
Lexington Realty Trust REIT | 1,613 | 15,791 | ||||||
Liberty Property Trust REIT | 15,956 | 530,697 | ||||||
Mack-Cali Realty Corp REIT | 28,046 | 535,959 | ||||||
Mid-America Apartment Communities Inc REIT | 9,148 | 600,566 | ||||||
National Retail Properties Inc REIT | 16,615 | 574,381 | ||||||
New York REIT Inc | 1,100 | 11,308 | ||||||
Prologis Inc REIT | 27,419 | 1,033,696 | ||||||
PS Business Parks Inc REIT | 2,139 | 162,863 | ||||||
Public Storage REIT | 12,499 | 2,072,834 | ||||||
Realty Income Corp REIT | 10,730 | 437,677 | ||||||
Regency Centers Corp REIT | 29,642 | 1,595,629 | ||||||
Rexford Industrial Realty Inc REIT | 9,600 | 132,864 | ||||||
Senior Housing Properties Trust REIT | 48,998 | 1,025,038 | ||||||
Simon Property Group Inc REIT | 36,432 | 5,990,149 | ||||||
Sovran Self Storage Inc REIT | 923 | 68,634 |
| Value | |||||||
Summit Hotel Properties Inc REIT | 18,494 | $199,365 | ||||||
Sunstone Hotel Investors Inc REIT | 13,569 | 187,524 | ||||||
Tanger Factory Outlet Centers Inc REIT | 29,966 | 980,488 | ||||||
Taubman Centers Inc REIT | 1,260 | 91,980 | ||||||
The Macerich Co REIT | 18,266 | 1,165,919 | ||||||
Ventas Inc REIT | 19,960 | 1,236,522 | ||||||
Vornado Realty Trust REIT | 29,748 | 2,973,610 | ||||||
WP Carey Inc | 1,910 | 121,801 | ||||||
|
| |||||||
42,140,485 | ||||||||
|
| |||||||
Total Common Stocks | 43,531,100 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT - 3.7% | ||||||||
Money Market Fund - 3.7% | ||||||||
BlackRock Liquidity Funds Treasury | 1,699,517 | 1,699,517 | ||||||
|
| |||||||
Total Short-Term Investment | 1,699,517 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 99.8% | 45,230,617 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.2% | 82,743 | |||||||
|
| |||||||
NET ASSETS - 100.0% | $45,313,360 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified by property sector as a percentage of net assets as follows: |
Retail | 29.3% | |||
Residential | 20.0% | |||
Hotels, Resorts & Cruise Lines | 13.6% | |||
Specialized | 12.8% | |||
Diversified | 10.1% | |||
Office | 6.3% | |||
Others (each less than 3.0%) | 4.0% | |||
|
| |||
96.1% | ||||
Short-Term Investment | 3.7% | |||
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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant | Level 3 Significant | |||||||||||||||
Assets | Common Stocks (1) | $43,531,100 | $43,531,100 | $— | $— | |||||||||||||
Short-Term Investment | 1,699,517 | 1,699,517 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $45,230,617 | $45,230,617 | $— | $— | ||||||||||||||
|
|
|
|
|
|
|
|
(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-91 |
A-65
PACIFIC LIFE FUNDS
PL EMERGING MARKETS FUND
Schedule of Investments
September 30, 2014 (Unaudited)
| Value | |||||||
WARRANTS - 0.1% |
| |||||||
Malaysia - 0.1% | ||||||||
Genting Bhd Exercise @ MYR 7.96 | 137,750 | $121,773 | ||||||
|
| |||||||
Total Warrants | 121,773 | |||||||
|
| |||||||
PREFERRED STOCKS - 5.3% |
| |||||||
Brazil - 4.1% | ||||||||
Banco Bradesco SA ADR | 59,210 | 843,743 | ||||||
Lojas Americanas SA | 355,233 | 2,014,351 | ||||||
Petroleo Brasileiro SA ADR | 248,600 | 3,701,654 | ||||||
Telefonica Brasil SA | 200 | 3,938 | ||||||
|
| |||||||
6,563,686 | ||||||||
|
| |||||||
Colombia - 1.1% | ||||||||
Banco Davivienda SA | 49,227 | 708,871 | ||||||
Bancolombia SA | 8,655 | 122,495 | ||||||
Bancolombia SA ADR | 15,340 | 870,085 | ||||||
Cementos Argos SA | 40,972 | 209,615 | ||||||
|
| |||||||
1,911,066 | ||||||||
|
| |||||||
India - 0.1% | ||||||||
Zee Entertainment Enterprises Ltd | 7,089,243 | 96,421 | ||||||
|
| |||||||
Total Preferred Stocks | 8,571,173 | |||||||
|
| |||||||
COMMON STOCKS - 90.6% |
| |||||||
Bermuda - 0.9% | ||||||||
Jardine Strategic Holdings Ltd | 39,282 | 1,365,167 | ||||||
|
| |||||||
Brazil - 8.0% | ||||||||
AMBEV SA ADR | 89,870 | 588,649 | ||||||
B2W Cia Digital * | 50,156 | 668,405 | ||||||
BM&FBovespa SA | 552,316 | 2,533,963 | ||||||
Cyrela Brazil Realty SA Empreendimentos e Participacoes | 131,900 | 665,495 | ||||||
Diagnosticos da America SA | 105,600 | 524,171 | ||||||
Embraer SA ADR | 36,600 | 1,435,452 | ||||||
Estacio Participacoes SA | 126,900 | 1,320,455 | ||||||
Kroton Educacional SA | 233,836 | 1,469,267 | ||||||
Natura Cosmeticos SA | 86,200 | 1,310,036 | ||||||
Sul America SA | 105,535 | 651,039 | ||||||
Telefonica Brasil SA ADR | 83,910 | 1,651,349 | ||||||
|
| |||||||
12,818,281 | ||||||||
|
| |||||||
Cayman - 12.7% | ||||||||
58.com Inc ADR * | 7,300 | 271,925 | ||||||
Alibaba Group Holding Ltd ADR * | 6,501 | 577,525 | ||||||
Baidu Inc ADR * | 38,400 | 8,380,032 | ||||||
Ctrip.com International Ltd ADR * | 9,730 | 552,275 | ||||||
Eurasia Drilling Co Ltd GDR (LI) ~ | 18,010 | 510,803 | ||||||
Home Inns & Hotels Management Inc ADR * | 24,680 | 715,473 | ||||||
JD.com Inc ADR * | 8,539 | 220,477 | ||||||
Mindray Medical International Ltd ADR | 20,550 | 619,788 | ||||||
New Oriental Education & Technology Group Inc ADR * | 68,330 | 1,585,256 | ||||||
Qunar Cayman Islands Ltd ADR * | 6,300 | 174,195 | ||||||
SOHO China Ltd | 1,065,500 | 769,627 | ||||||
Tencent Holdings Ltd | 177,722 | 2,645,585 |
| Value | |||||||
Tingyi Cayman Islands Holding Corp | 802,000 | $2,108,344 | ||||||
Want Want China Holdings Ltd | 909,000 | 1,133,814 | ||||||
|
| |||||||
20,265,119 | ||||||||
|
| |||||||
Chile - 0.9% | ||||||||
Cencosud SA | 481,461 | 1,418,043 | ||||||
|
| |||||||
China - 2.6% | ||||||||
China Life Insurance Co Ltd ‘H’ | 144,000 | 399,734 | ||||||
China Oilfield Services Ltd ‘H’ | 306,000 | 808,422 | ||||||
China Pacific Insurance Group Co Ltd ‘H’ | 87,200 | 305,857 | ||||||
Shandong Weigao Group Medical Polymer Co Ltd ‘H’ | 665,000 | 657,929 | ||||||
Sinopharm Group Co Ltd ‘H’ | 356,200 | 1,300,884 | ||||||
Tsingtao Brewery Co Ltd ‘H’ | 88,000 | 625,372 | ||||||
|
| |||||||
4,098,198 | ||||||||
|
| |||||||
Colombia - 1.9% | ||||||||
Almacenes Exito SA | 46,860 | 685,893 | ||||||
Almacenes Exito SA GDR ~ | 42,900 | 635,431 | ||||||
Grupo Aval Acciones y Valores ADR * | 58,240 | 789,152 | ||||||
Grupo de Inversiones Suramericana SA | 50,073 | 1,004,924 | ||||||
|
| |||||||
3,115,400 | ||||||||
|
| |||||||
Denmark - 1.2% | ||||||||
Carlsberg AS ‘B’ | 21,714 | 1,926,311 | ||||||
|
| |||||||
Egypt - 0.7% | ||||||||
Commercial International Bank Egypt SAE | 152,229 | 1,083,183 | ||||||
|
| |||||||
France - 2.6% | ||||||||
LVMH Moet Hennessy Louis Vuitton SA | 10,270 | 1,664,785 | ||||||
Pernod Ricard SA | 21,410 | 2,419,902 | ||||||
|
| |||||||
4,084,687 | ||||||||
|
| |||||||
Hong Kong - 4.6% | ||||||||
AIA Group Ltd | 297,600 | 1,535,905 | ||||||
CNOOC Ltd | 862,000 | 1,483,676 | ||||||
Hang Lung Group Ltd | 151,000 | 748,258 | ||||||
Hang Lung Properties Ltd | 771,000 | 2,190,509 | ||||||
Hong Kong Exchanges & Clearing Ltd | 64,216 | 1,383,756 | ||||||
|
| |||||||
7,342,104 | ||||||||
|
| |||||||
India - 13.7% | ||||||||
Ambuja Cements Ltd | 169,975 | 587,933 | ||||||
Apollo Hospitals Enterprise Ltd | 44,559 | 809,491 | ||||||
Asian Paints Ltd | 44,579 | 454,777 | ||||||
Cipla Ltd | 108,332 | 1,100,170 | ||||||
Colgate-Palmolive India Ltd | 21,394 | 603,881 | ||||||
Divi’s Laboratories Ltd | 4,654 | 135,261 | ||||||
Dr Reddy’s Laboratories Ltd | 20,516 | 1,074,449 | ||||||
Glenmark Pharmaceuticals Ltd | 21,896 | 255,857 | ||||||
Hindustan Unilever Ltd | 29,306 | 353,420 | ||||||
Housing Development Finance Corp | 236,738 | 4,036,895 | ||||||
ICICI Bank Ltd ADR | 61,370 | 3,013,267 | ||||||
Infosys Ltd | 61,325 | 3,728,319 | ||||||
Larsen & Toubro Ltd | 13,384 | 314,835 | ||||||
Lupin Ltd | 9,719 | 219,272 | ||||||
Marico Ltd | 102,050 | 512,384 | ||||||
Shriram Transport Finance Co Ltd | 10,571 | 159,519 | ||||||
Sun Pharmaceutical Industries Ltd | 36,213 | 501,318 | ||||||
Tata Consultancy Services Ltd | 37,836 | 1,677,618 | ||||||
Ultratech Cement Ltd | 16,848 | 717,819 | ||||||
Zee Entertainment Enterprises Ltd | 313,966 | 1,591,834 | ||||||
|
| |||||||
21,848,319 | ||||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-66
PACIFIC LIFE FUNDS
PL EMERGING MARKETS FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
| Value | |||||||
Indonesia - 2.6% | ||||||||
P.T. Astra International Tbk | 3,958,500 | $2,291,295 | ||||||
P.T. Indocement Tunggal Prakarsa Tbk | 392,000 | 693,480 | ||||||
P.T. Semen Indonesia Persero Tbk | 610,000 | 771,061 | ||||||
P.T. Unilever Indonesia Tbk | 123,000 | 320,034 | ||||||
|
| |||||||
4,075,870 | ||||||||
|
| |||||||
Italy - 1.7% | ||||||||
Prada SPA | 437,400 | 2,651,542 | ||||||
|
| |||||||
Luxembourg - 1.4% | ||||||||
Tenaris SA ADR | 50,350 | 2,293,442 | ||||||
|
| |||||||
Malaysia - 1.1% | ||||||||
Genting Bhd | 625,400 | 1,808,978 | ||||||
|
| |||||||
Mexico - 6.2% | ||||||||
America Movil SAB de CV ‘L’ ADR | 107,100 | 2,698,920 | ||||||
Fomento Economico Mexicano SAB de CV | 168,739 | 1,551,763 | ||||||
Grupo Aeroportuario del Sureste SAB de CV ‘B’ | 27,816 | 358,902 | ||||||
Grupo Financiero Banorte SAB de CV ‘O’ | 300,911 | 1,927,058 | ||||||
Grupo Financiero Inbursa SAB de CV ‘O’ | 374,392 | 1,070,448 | ||||||
Grupo Mexico SAB de CV ‘B’ | 96,898 | 325,603 | ||||||
Grupo Televisa SAB ADR | 59,530 | 2,016,876 | ||||||
|
| |||||||
9,949,570 | ||||||||
|
| |||||||
Netherlands - 2.0% | ||||||||
Yandex NV ‘A’ * | 114,040 | 3,169,742 | ||||||
|
| |||||||
Nigeria - 1.0% | ||||||||
Guaranty Trust Bank PLC | 1,845,063 | 335,005 | ||||||
Nigerian Breweries PLC | 693,206 | 744,609 | ||||||
Zenith Bank PLC | 3,178,886 | 475,329 | ||||||
|
| |||||||
1,554,943 | ||||||||
|
| |||||||
Philippines - 2.1% | ||||||||
International Container Terminal Services Inc | 3,090 | 7,598 | ||||||
Jollibee Foods Corp | 196,360 | 857,633 | ||||||
SM Investments Corp | 81,315 | 1,454,270 | ||||||
SM Prime Holdings Inc | 2,794,070 | 1,088,001 | ||||||
|
| |||||||
3,407,502 | ||||||||
|
| |||||||
Russia - 4.9% | ||||||||
Alrosa AO | 724,010 | 649,115 | ||||||
Magnit OJSC (RTS) | 15,572 | 3,901,259 | ||||||
NOVATEK OAO GDR (LI) ~ | 32,100 | 3,343,502 | ||||||
|
| |||||||
7,893,876 | ||||||||
|
| |||||||
South Africa - 1.5% | ||||||||
MTN Group Ltd | 61,674 | 1,299,753 | ||||||
Naspers Ltd ‘N’ | 9,641 | 1,060,355 | ||||||
|
| |||||||
2,360,108 | ||||||||
|
| |||||||
South Korea - 0.8% | ||||||||
NAVER Corp | 1,490 | 1,129,931 | ||||||
Shinsegae Co Ltd | 782 | 162,479 | ||||||
|
| |||||||
1,292,410 | ||||||||
|
| |||||||
Switzerland - 1.2% | ||||||||
Cie Financiere Richemont SA ~ | 23,356 | 1,913,970 | ||||||
|
| |||||||
Taiwan - 1.8% | ||||||||
Taiwan Semiconductor Manufacturing Co Ltd | 734,995 | 2,925,792 | ||||||
|
|
| Value | |||||||
Thailand - 1.0% | ||||||||
Airports of Thailand PCL | 29,800 | $215,516 | ||||||
CP ALL PCL | 1,034,400 | 1,427,584 | ||||||
|
| |||||||
1,643,100 | ||||||||
|
| |||||||
Turkey - 2.8% | ||||||||
Anadolu Efes Biracilik Ve Malt Sanayii AS * | 77,898 | 899,224 | ||||||
BIM Birlesik Magazalar AS | 33,041 | 692,043 | ||||||
Haci Omer Sabanci Holding AS | 339,814 | 1,428,605 | ||||||
Turkiye Garanti Bankasi AS | 316,911 | 1,111,883 | ||||||
Ulker Biskuvi Sanayi AS | 46,544 | 308,882 | ||||||
|
| |||||||
4,440,637 | ||||||||
|
| |||||||
United Arab Emirates - 1.0% | ||||||||
DP World Ltd | 15,579 | 323,264 | ||||||
DP World Ltd (LI) | 65,554 | 1,315,790 | ||||||
|
| |||||||
1,639,054 | ||||||||
|
| |||||||
United Kingdom - 6.5% | ||||||||
Genel Energy PLC * | 55,960 | 756,805 | ||||||
Glencore PLC * | 562,250 | 3,110,940 | ||||||
HSBC Holdings PLC | 137,949 | 1,410,465 | ||||||
Old Mutual PLC | 448,732 | 1,311,178 | ||||||
SABMiller PLC | 34,060 | 1,892,645 | ||||||
Tullow Oil PLC | 178,944 | 1,862,954 | ||||||
|
| |||||||
10,344,987 | ||||||||
|
| |||||||
United States - 1.2% | ||||||||
MercadoLibre Inc | 18,040 | 1,960,046 | ||||||
|
| |||||||
Total Common Stocks | 144,690,381 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT - 3.8% | ||||||||
Money Market Fund - 3.8% | ||||||||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio | 6,024,063 | 6,024,063 | ||||||
|
| |||||||
Total Short-Term Investment | 6,024,063 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 99.8% | 159,407,390 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.2% | 299,710 | |||||||
|
| |||||||
NET ASSETS - 100.0% | $159,707,100 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Financials | 20.9% | |||
Information Technology | 16.6% | |||
Consumer Staples | 16.3% | |||
Consumer Discretionary | 16.0% | |||
Energy | 9.2% | |||
Materials | 4.7% | |||
Health Care | 4.5% | |||
Industrials | 4.3% | |||
Short-Term Investment | 3.8% | |||
Telecommunication Services | 3.5% | |||
|
| |||
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-91 |
A-67
PACIFIC LIFE FUNDS
PL EMERGING MARKETS FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
(b) | As of September 30, 2014, the fund was diversified by country of incorporation as a percentage of net assets as follows: |
India | 13.8% | |||
Cayman | 12.7% | |||
Brazil | 12.1% | |||
United Kingdom | 6.5% | |||
Mexico | 6.2% | |||
United States (Includes Short-Term Investment) | 5.0% | |||
Russia | 4.9% | |||
Hong Kong | 4.6% | |||
Others (each less than 3.0%) | 34.0% | |||
|
| |||
99.8% | ||||
Other Assets & Liabilities, Net | 0.2% | |||
|
| |||
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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Warrants (1) | $121,773 | $121,773 | $— | $— | |||||||||||||
Preferred Stocks (1) | 8,571,173 | 8,571,173 | — | — | ||||||||||||||
Common Stocks | ||||||||||||||||||
Bermuda | 1,365,167 | — | 1,365,167 | — | ||||||||||||||
Brazil | 12,818,281 | 12,818,281 | — | — | ||||||||||||||
Cayman | 20,265,119 | 13,096,946 | 7,168,173 | — | ||||||||||||||
Chile | 1,418,043 | 1,418,043 | — | — | ||||||||||||||
China | 4,098,198 | — | 4,098,198 | — | ||||||||||||||
Colombia | 3,115,400 | 2,479,969 | 635,431 | — | ||||||||||||||
Denmark | 1,926,311 | — | 1,926,311 | — | ||||||||||||||
Egypt | 1,083,183 | — | 1,083,183 | — | ||||||||||||||
France | 4,084,687 | — | 4,084,687 | — | ||||||||||||||
Hong Kong | 7,342,104 | — | 7,342,104 | — | ||||||||||||||
India | 21,848,319 | 3,013,267 | 18,835,052 | — | ||||||||||||||
Indonesia | 4,075,870 | — | 4,075,870 | — | ||||||||||||||
Italy | 2,651,542 | — | 2,651,542 | — | ||||||||||||||
Luxembourg | 2,293,442 | 2,293,442 | — | — | ||||||||||||||
Malaysia | 1,808,978 | — | 1,808,978 | — | ||||||||||||||
Mexico | 9,949,570 | 9,949,570 | — | — | ||||||||||||||
Netherlands | 3,169,742 | 3,169,742 | — | — | ||||||||||||||
Nigeria | 1,554,943 | 1,554,943 | — | — | ||||||||||||||
Philippines | 3,407,502 | — | 3,407,502 | — | ||||||||||||||
Russia | 7,893,876 | — | 7,893,876 | — | ||||||||||||||
South Africa | 2,360,108 | — | 2,360,108 | — | ||||||||||||||
South Korea | 1,292,410 | — | 1,292,410 | — | ||||||||||||||
Switzerland | 1,913,970 | — | 1,913,970 | — | ||||||||||||||
Taiwan | 2,925,792 | — | 2,925,792 | — | ||||||||||||||
Thailand | 1,643,100 | 215,516 | 1,427,584 | — | ||||||||||||||
Turkey | 4,440,637 | — | 4,440,637 | — | ||||||||||||||
United Arab Emirates | 1,639,054 | 323,264 | 1,315,790 | — | ||||||||||||||
United Kingdom | 10,344,987 | — | 10,344,987 | — | ||||||||||||||
United States | 1,960,046 | 1,960,046 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
144,690,381 | 52,293,029 | 92,397,352 | — | |||||||||||||||
Short-Term Investment | 6,024,063 | 6,024,063 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $159,407,390 | $67,010,038 | $92,397,352 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
During the six-month period ended September 30, 2014, investments with a total aggregate value of $3,931,972 were transferred from Level 1 to Level 2 due to valuation adjustments made to exchange-traded prices as a result of market movements following the close of local trading. Also during the same period, an investment with a value of $215,516 was transferred from Level 2 to Level 1 due to the removal of valuation adjustments made to exchange-traded prices as a result of market movements following the close of local trading.
(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-91 |
A-68
PACIFIC LIFE FUNDS
PL INTERNATIONAL LARGE-CAP FUND
Schedule of Investments
September 30, 2014 (Unaudited)
| Value | |||||||
PREFERRED STOCKS - 0.8% | ||||||||
Brazil - 0.8% | ||||||||
Itau Unibanco Holding SA ADR | 166,922 | $2,316,877 | ||||||
|
| |||||||
Total Preferred Stocks | 2,316,877 | |||||||
|
| |||||||
COMMON STOCKS - 97.2% | ||||||||
Australia - 0.4% | ||||||||
Orica Ltd | 73,683 | 1,213,537 | ||||||
|
| |||||||
Bermuda - 1.8% | ||||||||
Global Brands Group Holding Ltd * | 6,920,639 | 1,521,366 | ||||||
Li & Fung Ltd | 3,005,358 | 3,408,653 | ||||||
|
| |||||||
4,930,019 | ||||||||
|
| |||||||
Brazil - 0.3% | ||||||||
BM&FBovespa SA | 180,600 | 828,572 | ||||||
|
| |||||||
Canada - 4.7% | ||||||||
Canadian National Railway Co | 92,664 | 6,575,437 | ||||||
Loblaw Cos Ltd | 55,957 | 2,800,473 | ||||||
Valeant Pharmaceuticals International Inc * | 27,175 | 3,565,360 | ||||||
|
| |||||||
12,941,270 | ||||||||
|
| |||||||
Denmark - 0.5% | ||||||||
Carlsberg AS ‘B’ | 14,048 | 1,246,238 | ||||||
|
| |||||||
France - 12.6% | ||||||||
Air Liquide SA | 45,335 | 5,511,796 | ||||||
Danone SA | 82,725 | 5,522,760 | ||||||
Dassault Systemes | 22,240 | 1,423,444 | ||||||
GDF Suez | 143,238 | 3,582,502 | ||||||
Legrand SA | 39,754 | 2,061,917 | ||||||
LVMH Moet Hennessy Louis Vuitton SA | 34,268 | 5,554,902 | ||||||
Pernod Ricard SA | 48,466 | 5,477,952 | ||||||
Schneider Electric SE | 76,358 | 5,838,945 | ||||||
|
| |||||||
34,974,218 | ||||||||
|
| |||||||
Germany - 12.4% | ||||||||
Bayer AG | 87,150 | 12,205,714 | ||||||
Beiersdorf AG | 49,741 | 4,154,640 | ||||||
Linde AG | 30,559 | 5,872,267 | ||||||
Merck KGaA | 46,259 | 4,263,236 | ||||||
MTU Aero Engines AG | 11,847 | 1,009,989 | ||||||
ProSiebenSat.1 Media AG | 57,094 | 2,272,539 | ||||||
SAP SE | 64,051 | 4,618,774 | ||||||
|
| |||||||
34,397,159 | ||||||||
|
| |||||||
Hong Kong - 1.7% | ||||||||
AIA Group Ltd | 906,262 | 4,677,191 | ||||||
|
| |||||||
India - 1.8% | ||||||||
Housing Development Finance Corp | 180,812 | 3,083,236 | ||||||
Reliance Industries Ltd | 131,203 | 2,002,942 | ||||||
|
| |||||||
5,086,178 | ||||||||
|
| |||||||
Israel - 0.4% | ||||||||
Check Point Software Technologies Ltd * | 14,856 | 1,028,629 | ||||||
|
| |||||||
Italy - 0.7% | ||||||||
Saipem SPA * | 90,230 | 1,910,105 | ||||||
|
|
| Value | |||||||
Japan - 12.6% | ||||||||
Denso Corp | 123,000 | $5,675,412 | ||||||
FANUC Corp | 17,200 | 3,106,059 | ||||||
Honda Motor Co Ltd | 171,400 | 5,945,003 | ||||||
Hoya Corp | 160,200 | 5,384,274 | ||||||
Inpex Corp | 290,100 | 4,106,978 | ||||||
Japan Tobacco Inc | 89,500 | 2,913,246 | ||||||
Kyocera Corp | 58,700 | 2,738,370 | ||||||
Shin-Etsu Chemical Co Ltd | 42,000 | 2,747,517 | ||||||
Terumo Corp | 100,300 | 2,406,562 | ||||||
|
| |||||||
35,023,421 | ||||||||
|
| |||||||
Netherlands - 6.3% | ||||||||
Akzo Nobel NV | 61,360 | 4,180,154 | ||||||
Heineken NV | 37,464 | 2,797,948 | ||||||
ING Groep NV CVA * | 427,030 | 6,074,015 | ||||||
Randstad Holding NV | 97,139 | 4,510,857 | ||||||
|
| |||||||
17,562,974 | ||||||||
|
| |||||||
Russia - 0.4% | ||||||||
Sberbank of Russia ADR | 147,712 | 1,162,198 | ||||||
|
| |||||||
Singapore - 2.2% | ||||||||
DBS Group Holdings Ltd | 329,000 | 4,743,382 | ||||||
Singapore Telecommunications Ltd | 413,862 | 1,229,986 | ||||||
|
| |||||||
5,973,368 | ||||||||
|
| |||||||
South Korea - 0.9% | ||||||||
Samsung Electronics Co Ltd | 2,145 | 2,401,309 | ||||||
|
| |||||||
Spain - 1.1% | ||||||||
Amadeus IT Holding SA ‘A’ | 79,158 | 2,948,533 | ||||||
|
| |||||||
Sweden - 1.1% | ||||||||
Hennes & Mauritz AB ‘B’ | 75,066 | 3,114,576 | ||||||
|
| |||||||
Switzerland - 9.8% | ||||||||
Julius Baer Group Ltd | 58,006 | 2,588,007 | ||||||
Kuehne + Nagel International AG | 11,497 | 1,450,445 | ||||||
Nestle SA | 132,981 | 9,754,116 | ||||||
Roche Holding AG | 17,344 | 5,135,595 | ||||||
Sonova Holding AG | 16,038 | 2,559,433 | ||||||
UBS AG (XVTX) | 318,248 | 5,521,639 | ||||||
|
| |||||||
27,009,235 | ||||||||
|
| |||||||
Taiwan - 2.5% | ||||||||
Hon Hai Precision Industry Co Ltd | 522,459 | 1,645,135 | ||||||
Taiwan Semiconductor Manufacturing Co Ltd ADR | 257,096 | 5,188,197 | ||||||
|
| |||||||
6,833,332 | ||||||||
|
| |||||||
Thailand - 0.3% | ||||||||
Kasikornbank PCL | 123,400 | 889,821 | ||||||
|
| |||||||
United Kingdom - 20.6% | ||||||||
Barclays PLC | 798,715 | 2,942,376 | ||||||
BG Group PLC | 231,554 | 4,259,347 | ||||||
British Sky Broadcasting Group PLC | 19,533 | 277,799 | ||||||
Compass Group PLC | 469,052 | 7,575,514 | ||||||
Delphi Automotive PLC | 30,696 | 1,882,893 | ||||||
Diageo PLC | 153,546 | 4,439,597 | ||||||
Hays PLC | 427,383 | 801,297 | ||||||
HSBC Holdings PLC (LI) | 654,054 | 6,656,498 | ||||||
Prudential PLC | 80,834 | 1,795,376 | ||||||
Reckitt Benckiser Group PLC | 62,263 | 5,389,132 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-69
PACIFIC LIFE FUNDS
PL INTERNATIONAL LARGE-CAP FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
| Value | |||||||
Rio Tinto PLC | 72,741 | $3,571,414 | ||||||
Rolls-Royce Holdings PLC * | 145,274 | 2,251,791 | ||||||
Smiths Group PLC | 155,153 | 3,178,001 | ||||||
Standard Chartered PLC | 283,407 | 5,220,862 | ||||||
WPP PLC | 341,738 | 6,835,439 | ||||||
|
| |||||||
57,077,336 | ||||||||
|
| |||||||
United States - 2.1% | ||||||||
NCR Corp * | 41,805 | 1,396,705 | ||||||
Yum! Brands Inc | 60,770 | 4,374,225 | ||||||
|
| |||||||
5,770,930 | ||||||||
|
| |||||||
Total Common Stocks | 269,000,149 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT - 1.3% | ||||||||
Money Market Fund - 1.3% | ||||||||
BlackRock Liquidity Funds Treasury | 3,509,948 | 3,509,948 | ||||||
|
| |||||||
Total Short-Term Investment | 3,509,948 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 99.3% | 274,826,974 | |||||||
OTHER ASSETS & LIABILITIES, NET - 0.7% | 2,074,157 | |||||||
|
| |||||||
NET ASSETS - 100.0% | $276,901,131 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Financials | 17.5% | |||
Consumer Discretionary | 17.5% | |||
Consumer Staples | 16.1% | |||
Industrials | 11.1% | |||
Health Care | 10.9% | |||
Information Technology | 10.4% | |||
Materials | 8.3% | |||
Energy | 4.4% | |||
Others (each less than 3.0%) | 3.1% | |||
|
| |||
99.3% | ||||
Other Assets & Liabilities, Net | 0.7% | |||
|
| |||
100.0% | ||||
|
|
(b) | As of September 30, 2014, the fund was diversified by country of incorporation as a percentage of net assets as follows: |
United Kingdom | 20.6% | |||
Japan | 12.6% | |||
France | 12.6% | |||
Germany | 12.4% | |||
Switzerland | 9.8% | |||
Netherlands | 6.3% | |||
Canada | 4.7% | |||
United States (Includes Short-Term Investment) | 3.4% | |||
Others (each less than 3.0%) | 16.9% | |||
|
| |||
99.3% | ||||
Other Assets & Liabilities, Net | 0.7% | |||
|
| |||
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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Preferred Stocks (1) | $2,316,877 | $2,316,877 | $— | $— | |||||||||||||
Common Stocks | ||||||||||||||||||
Australia | 1,213,537 | — | 1,213,537 | — | ||||||||||||||
Bermuda | 4,930,019 | — | 4,930,019 | — | ||||||||||||||
Brazil | 828,572 | 828,572 | — | — | ||||||||||||||
Canada | 12,941,270 | 12,941,270 | — | — | ||||||||||||||
Denmark | 1,246,238 | — | 1,246,238 | — | ||||||||||||||
France | 34,974,218 | — | 34,974,218 | — | ||||||||||||||
Germany | 34,397,159 | — | 34,397,159 | — | ||||||||||||||
Hong Kong | 4,677,191 | — | 4,677,191 | — | ||||||||||||||
India | 5,086,178 | — | 5,086,178 | — | ||||||||||||||
Israel | 1,028,629 | 1,028,629 | — | — | ||||||||||||||
Italy | 1,910,105 | — | 1,910,105 | — | ||||||||||||||
Japan | 35,023,421 | — | 35,023,421 | — | ||||||||||||||
Netherlands | 17,562,974 | — | 17,562,974 | — | ||||||||||||||
Russia | 1,162,198 | 1,162,198 | — | — | ||||||||||||||
Singapore | 5,973,368 | — | 5,973,368 | — | ||||||||||||||
South Korea | 2,401,309 | — | 2,401,309 | — | ||||||||||||||
Spain | 2,948,533 | — | 2,948,533 | — | ||||||||||||||
Sweden | 3,114,576 | — | 3,114,576 | — | ||||||||||||||
Switzerland | 27,009,235 | — | 27,009,235 | — | ||||||||||||||
Taiwan | 6,833,332 | 5,188,197 | 1,645,135 | — | ||||||||||||||
Thailand | 889,821 | — | 889,821 | — | ||||||||||||||
United Kingdom | 57,077,336 | 1,882,893 | 55,194,443 | — | ||||||||||||||
United States | 5,770,930 | 5,770,930 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
269,000,149 | 28,802,689 | 240,197,460 | — | |||||||||||||||
Short-Term Investment | 3,509,948 | 3,509,948 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $274,826,974 | $34,629,514 | $240,197,460 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
(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-91 |
A-70
PACIFIC LIFE FUNDS
PL INTERNATIONAL VALUE FUND
Schedule of Investments
September 30, 2014 (Unaudited)
| Value | |||||||
RIGHTS - 0.0% |
| |||||||
Spain - 0.0% |
| |||||||
Banco Popular Espanol SA | 177,177 | $2,462 | ||||||
|
| |||||||
Total Rights | 2,462 | |||||||
|
| |||||||
PREFERRED STOCKS - 0.8% |
| |||||||
Germany - 0.8% |
| |||||||
Porsche Automobil Holding SE | 15,816 | 1,266,165 | ||||||
|
| |||||||
Total Preferred Stocks | 1,266,165 | |||||||
|
| |||||||
COMMON STOCKS - 97.2% |
| |||||||
Australia - 1.9% |
| |||||||
Australia & New Zealand Banking Group Ltd | 84,003 | 2,269,779 | ||||||
Goodman Group REIT | 211,234 | 952,384 | ||||||
|
| |||||||
3,222,163 | ||||||||
|
| |||||||
Belgium - 2.3% |
| |||||||
KBC Groep NV * | 16,277 | 859,268 | ||||||
Solvay SA | 20,631 | 3,162,893 | ||||||
|
| |||||||
4,022,161 | ||||||||
|
| |||||||
Canada - 1.0% |
| |||||||
First Quantum Minerals Ltd | 91,425 | 1,764,908 | ||||||
|
| |||||||
Cayman - 0.5% |
| |||||||
Sands China Ltd | 178,800 | 928,853 | ||||||
|
| |||||||
China - 0.9% |
| |||||||
Industrial & Commercial Bank of China Ltd ‘H’ | 2,355,000 | 1,469,695 | ||||||
|
| |||||||
Denmark - 1.0% |
| |||||||
Danske Bank AS | 62,614 | 1,696,887 | ||||||
|
| |||||||
Finland - 0.8% |
| |||||||
UPM-Kymmene OYJ | 100,399 | 1,424,255 | ||||||
|
| |||||||
France - 16.0% |
| |||||||
AXA SA | 113,679 | 2,799,591 | ||||||
BNP Paribas SA | 50,610 | 3,346,777 | ||||||
Cie de St-Gobain | 50,571 | 2,303,385 | ||||||
Credit Agricole SA | 106,141 | 1,594,784 | ||||||
Electricite de France SA | 37,059 | 1,215,397 | ||||||
GDF Suez | 132,240 | 3,307,433 | ||||||
Lafarge SA | 25,188 | 1,808,313 | ||||||
Publicis Groupe SA | 15,013 | 1,029,511 | ||||||
Renault SA | 31,017 | 2,238,815 | ||||||
Sanofi | 26,810 | 3,024,590 | ||||||
Schneider Electric SE | 28,810 | 2,203,044 | ||||||
Sodexo | 17,157 | 1,674,603 | ||||||
Suez Environnement Co | 50,908 | 857,378 | ||||||
|
| |||||||
27,403,621 | ||||||||
|
|
| Value | |||||||
Germany - 3.2% |
| |||||||
Bayer AG | 28,690 | $4,018,152 | ||||||
Daimler AG | 19,748 | 1,514,665 | ||||||
|
| |||||||
5,532,817 | ||||||||
|
| |||||||
Hong Kong - 1.3% |
| |||||||
Hutchison Whampoa Ltd | 116,000 | 1,402,002 | ||||||
The Wharf Holdings Ltd | 105,000 | 746,856 | ||||||
|
| |||||||
2,148,858 | ||||||||
|
| |||||||
India - 0.5% |
| |||||||
Infosys Ltd ADR | 14,651 | 886,239 | ||||||
|
| |||||||
Ireland - 0.7% |
| |||||||
Ryanair Holdings PLC ADR * | 21,068 | 1,188,867 | ||||||
|
| |||||||
Italy - 5.4% |
| |||||||
Assicurazioni Generali SPA | 104,611 | 2,195,645 | ||||||
Enel SPA | 482,918 | 2,547,980 | ||||||
Eni SPA | 88,738 | 2,106,670 | ||||||
Telecom Italia SPA * | 751,233 | 858,248 | ||||||
Unione di Banche Italiane SCpA | 176,243 | 1,468,978 | ||||||
|
| |||||||
9,177,521 | ||||||||
|
| |||||||
Japan - 22.9% |
| |||||||
Daikin Industries Ltd | 12,800 | 794,347 | ||||||
Daiwa House Industry Co Ltd | 93,300 | 1,675,606 | ||||||
Hitachi Ltd | 442,000 | 3,363,957 | ||||||
Japan Airlines Co Ltd | 67,000 | 1,833,624 | ||||||
Japan Tobacco Inc | 59,100 | 1,923,719 | ||||||
KDDI Corp | 23,300 | 1,402,049 | ||||||
Mitsubishi UFJ Financial Group Inc | 815,100 | 4,613,900 | ||||||
Mitsui & Co Ltd | 132,700 | 2,093,968 | ||||||
Mitsui Fudosan Co Ltd | 68,000 | 2,085,256 | ||||||
NH Foods Ltd | 49,000 | 1,041,732 | ||||||
Nippon Telegraph & Telephone Corp | 34,600 | 2,153,374 | ||||||
Nomura Holdings Inc | 272,300 | 1,615,823 | ||||||
ORIX Corp | 113,800 | 1,571,612 | ||||||
Otsuka Holdings Co Ltd | 34,900 | 1,203,684 | ||||||
Ricoh Co Ltd | 93,500 | 1,005,347 | ||||||
Seven & I Holdings Co Ltd | 42,200 | 1,638,338 | ||||||
Sony Corp | 62,200 | 1,120,811 | ||||||
Sumitomo Mitsui Financial Group Inc | 45,000 | 1,836,344 | ||||||
Toyota Motor Corp | 71,700 | 4,213,591 | ||||||
Yamaha Motor Co Ltd | 49,500 | 969,331 | ||||||
Yamato Holdings Co Ltd | 55,800 | 1,039,369 | ||||||
|
| |||||||
39,195,782 | ||||||||
|
| |||||||
Netherlands - 2.6% |
| |||||||
ING Groep NV CVA * | 165,431 | 2,353,068 | ||||||
Koninklijke KPN NV * | 644,544 | 2,057,591 | ||||||
|
| |||||||
4,410,659 | ||||||||
|
| |||||||
Norway - 1.5% |
| |||||||
DNB ASA | 64,450 | 1,205,327 | ||||||
Norsk Hydro ASA | 239,502 | 1,334,374 | ||||||
|
| |||||||
2,539,701 | ||||||||
|
| |||||||
Russia - 0.5% |
| |||||||
MMC Norilsk Nickel OJSC ADR | 46,963 | 872,572 | ||||||
|
| |||||||
South Korea - 1.7% |
| |||||||
KT Corp | 30,725 | 999,678 | ||||||
Samsung Electronics Co Ltd | 1,741 | 1,949,034 | ||||||
|
| |||||||
2,948,712 | ||||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-71
PACIFIC LIFE FUNDS
PL INTERNATIONAL VALUE FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
| Value | |||||||
Spain - 2.0% |
| |||||||
Banco Popular Espanol SA | 195,819 | $1,191,467 | ||||||
Repsol SA | 96,171 | 2,275,975 | ||||||
|
| |||||||
3,467,442 | ||||||||
|
| |||||||
Sweden - 1.4% |
| |||||||
Electrolux AB ‘B’ | 88,104 | 2,315,794 | ||||||
|
| |||||||
Switzerland - 7.1% |
| |||||||
Nestle SA | 39,959 | 2,930,980 | ||||||
Novartis AG | 39,519 | 3,721,824 | ||||||
Roche Holding AG | 10,823 | 3,204,713 | ||||||
Zurich Insurance Group AG | 7,611 | 2,263,206 | ||||||
|
| |||||||
12,120,723 | ||||||||
|
| |||||||
Taiwan - 0.5% |
| |||||||
Asustek Computer Inc | 90,000 | 856,837 | ||||||
|
| |||||||
Turkey - 0.6% |
| |||||||
Turkiye Garanti Bankasi AS | 298,895 | 1,048,674 | ||||||
|
| |||||||
United Kingdom - 20.9% |
| |||||||
AstraZeneca PLC | 33,548 | 2,403,503 | ||||||
Barclays PLC | 613,903 | 2,261,549 | ||||||
BG Group PLC | 164,529 | 3,026,448 | ||||||
BP PLC | 173,644 | 1,272,398 | ||||||
British American Tobacco PLC | 26,748 | 1,503,466 | ||||||
HSBC Holdings PLC | 501,462 | 5,103,525 | ||||||
InterContinental Hotels Group PLC | 37,503 | 1,446,085 | ||||||
Prudential PLC | 106,270 | 2,360,326 | ||||||
Rio Tinto PLC | 69,994 | 3,436,543 | ||||||
Royal Dutch Shell PLC ‘A’ | 167,492 | 6,388,464 | ||||||
SABMiller PLC | 31,570 | 1,754,280 | ||||||
Vodafone Group PLC | 1,186,655 | 3,911,579 | ||||||
Wolseley PLC | 19,300 | 1,013,960 | ||||||
|
| |||||||
35,882,126 | ||||||||
|
| |||||||
Total Common Stocks |
| 166,525,867 | ||||||
|
| |||||||
SHORT-TERM INVESTMENT - 7.6% |
| |||||||
Money Market Fund - 7.6% |
| |||||||
Blackrock Liquidity Funds Treasury Trust Fund Portfolio | 13,021,382 | 13,021,382 | ||||||
|
| |||||||
Total Short-Term Investment | 13,021,382 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 105.6% | 180,815,876 | |||||||
OTHER ASSETS & LIABILITIES, NET - (5.6%) | (9,512,309 | ) | ||||||
|
| |||||||
NET ASSETS - 100.0% | $171,303,567 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Financials | 29.5% | |||
Consumer Discretionary | 10.9% | |||
Health Care | 10.3% | |||
Energy | 8.8% | |||
Industrials | 8.1% | |||
Materials | 8.1% | |||
Short-Term Investment | 7.6% | |||
Telecommunication Services | 6.7% | |||
Consumer Staples | 6.3% | |||
Information Technology | 4.7% | |||
Utilities | 4.6% | |||
|
| |||
105.6% | ||||
Other Assets & Liabilities, Net | (5.6% | ) | ||
|
| |||
100.0% | ||||
|
|
(b) | As of September 30, 2014, the fund was diversified by country of incorporation as a percentage of net assets as follows: |
Japan | 22.9% | |||
United Kingdom | 20.9% | |||
France | 16.0% | |||
United States (Includes Short-Term Investment) | 7.6% | |||
Switzerland | 7.1% | |||
Italy | 5.4% | |||
Germany | 4.0% | |||
Others (each less than 3.0%) | 21.7% | |||
|
| |||
105.6% | ||||
Other Assets & Liabilities, Net | (5.6% | ) | ||
|
| |||
100.0% | ||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-72
PACIFIC LIFE FUNDS
PL INTERNATIONAL VALUE FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
(c) | Forward foreign currency contracts outstanding as of September 30, 2014 were as follows: |
Currency Purchased | Currency Sold | Expiration | Counterparty | Unrealized Appreciation (Depreciation) | ||||||||||||||||
AUD | 1,267,921 | USD | 1,110,791 | 11/14 | DUB | ($3,625 | ) | |||||||||||||
AUD | 11,333,919 | USD | 10,548,132 | 11/14 | HSB | (651,192 | ) | |||||||||||||
CAD | 523,489 | USD | 476,745 | 11/14 | DUB | (9,749 | ) | |||||||||||||
CHF | 6,065,273 | USD | 6,689,069 | 11/14 | ANZ | (334,110 | ) | |||||||||||||
CHF | 1,294,666 | USD | 1,367,108 | 11/14 | DUB | (10,607 | ) | |||||||||||||
CHF | 798,166 | USD | 881,509 | 11/14 | HSB | (45,221 | ) | |||||||||||||
EUR | 772,608 | USD | 1,033,361 | 11/14 | BRC | (57,274 | ) | |||||||||||||
EUR | 256,744 | USD | 338,931 | 11/14 | CSF | (14,570 | ) | |||||||||||||
EUR | 4,056,216 | USD | 5,169,226 | 11/14 | DUB | (44,737 | ) | |||||||||||||
EUR | 610,552 | USD | 819,177 | 11/14 | GSC | (47,825 | ) | |||||||||||||
EUR | 4,683,555 | USD | 6,287,263 | 11/14 | HSB | (370,217 | ) | |||||||||||||
EUR | 298,772 | USD | 386,406 | 11/14 | UBS | (8,947 | ) | |||||||||||||
GBP | 196,083 | USD | 328,575 | 11/14 | BRC | (10,795 | ) | |||||||||||||
GBP | 2,233,608 | USD | 3,640,596 | 11/14 | DUB | (20,732 | ) | |||||||||||||
GBP | 763,460 | USD | 1,267,484 | 11/14 | GSC | (30,195 | ) | |||||||||||||
GBP | 2,114,496 | USD | 3,557,515 | 11/14 | HSB | (130,688 | ) | |||||||||||||
GBP | 597,147 | USD | 962,052 | 11/14 | RBC | 5,706 | ||||||||||||||
HKD | 8,318,234 | USD | 1,072,920 | 11/14 | DUB | (1,747 | ) | |||||||||||||
HKD | 4,443,969 | USD | 573,489 | 11/14 | HSB | (1,221 | ) | |||||||||||||
HKD | 2,501,517 | USD | 322,760 | 11/14 | SSB | (630 | ) | |||||||||||||
HKD | 13,856,456 | USD | 1,787,968 | 11/14 | WBC | (3,616 | ) | |||||||||||||
JPY | 135,269,343 | EUR | 990,000 | 11/14 | CIT | (17,047 | ) | |||||||||||||
JPY | 59,602,624 | HKD | 4,527,771 | 11/14 | SGN | (39,471 | ) | |||||||||||||
JPY | 60,805,973 | USD | 591,176 | 11/14 | BRC | (36,612 | ) | |||||||||||||
JPY | 434,130,843 | USD | 4,235,179 | 11/14 | CIT | (275,812 | ) | |||||||||||||
JPY | 502,893,925 | USD | 4,675,622 | 11/14 | DUB | (89,119 | ) | |||||||||||||
JPY | 68,227,671 | USD | 627,438 | 11/14 | GSC | (5,187 | ) | |||||||||||||
NOK | 3,980,206 | USD | 645,205 | 11/14 | DUB | (26,513 | ) | |||||||||||||
NOK | 2,446,732 | USD | 388,404 | 11/14 | HSB | (8,078 | ) | |||||||||||||
NOK | 2,487,100 | USD | 400,933 | 11/14 | RBC | (14,332 | ) | |||||||||||||
SEK | 21,476,564 | USD | 3,114,875 | 11/14 | DUB | (139,047 | ) | |||||||||||||
SGD | 3,408,646 | USD | 2,733,596 | 11/14 | WBC | (61,655 | ) | |||||||||||||
USD | 1,055,975 | AUD | 1,140,958 | 11/14 | DUB | 59,674 | ||||||||||||||
USD | 1,721,040 | CAD | 1,874,420 | 11/14 | GSC | 48,901 | ||||||||||||||
USD | 646,900 | CHF | 587,612 | 11/14 | BRC | 31,223 | ||||||||||||||
USD | 877,177 | CHF | 794,373 | 11/14 | CIT | 44,864 | ||||||||||||||
USD | 2,124,336 | CHF | 1,923,109 | 11/14 | DUB | 109,377 | ||||||||||||||
USD | 1,147,936 | CHF | 1,092,068 | 11/14 | MSC | 3,709 | ||||||||||||||
USD | 353,583 | CHF | 332,248 | 11/14 | WBC | 5,467 | ||||||||||||||
USD | 476,274 | EUR | 355,451 | 11/14 | CIT | 27,209 | ||||||||||||||
USD | 6,195,344 | EUR | 4,623,108 | 11/14 | DUB | 354,663 | ||||||||||||||
USD | 877,332 | EUR | 671,991 | 11/14 | GSC | 28,361 | ||||||||||||||
USD | 4,694,778 | EUR | 3,700,893 | 11/14 | MSC | 19,192 | ||||||||||||||
USD | 6,164,521 | EUR | 4,605,923 | 11/14 | RBS | 345,551 | ||||||||||||||
USD | 972,132 | EUR | 762,436 | 11/14 | SSB | 8,896 | ||||||||||||||
USD | 4,374,930 | GBP | 2,601,519 | 11/14 | DUB | 158,817 | ||||||||||||||
USD | 429,189 | GBP | 264,437 | 11/14 | GSC | 633 | ||||||||||||||
USD | 3,216,448 | GBP | 1,982,736 | 11/14 | MSC | 3,156 | ||||||||||||||
USD | 3,825,695 | GBP | 2,269,971 | 11/14 | RBS | 146,901 | ||||||||||||||
USD | 894,985 | HKD | 6,937,091 | 11/14 | CIT | 1,668 | ||||||||||||||
USD | 742,082 | HKD | 5,750,244 | 11/14 | RBS | 1,600 | ||||||||||||||
USD | 439,452 | HKD | 3,408,991 | 11/14 | SSB | 462 | ||||||||||||||
USD | 694,249 | HKD | 5,380,220 | 11/14 | UBS | 1,416 | ||||||||||||||
USD | 3,929,050 | JPY | 402,993,380 | 11/14 | DUB | 253,663 | ||||||||||||||
USD | 8,471,492 | JPY | 870,767,755 | 11/14 | GSC | 529,901 | ||||||||||||||
USD | 509,536 | JPY | 52,252,618 | 11/14 | HSB | 32,980 | ||||||||||||||
USD | 3,563,215 | JPY | 390,605,226 | 11/14 | MSC | 810 | ||||||||||||||
USD | 601,373 | JPY | 65,710,537 | 11/14 | RBC | 2,079 | ||||||||||||||
USD | 877,510 | JPY | 94,083,062 | 11/14 | SSB | 19,453 | ||||||||||||||
USD | 2,801,439 | NOK | 17,649,827 | 11/14 | DUB | 57,910 | ||||||||||||||
|
| |||||||||||||||||||
Total Forward Foreign Currency Contracts | ($206,329 | ) | ||||||||||||||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-73
PACIFIC LIFE FUNDS
PL INTERNATIONAL VALUE FUND
Schedule of Investments (Continued)
September 30, 2014 (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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant Observable Input | Level 3 Significant Unobservable Input | |||||||||||||||
Assets | Rights (1) | $2,462 | $2,462 | $— | $— | |||||||||||||
Preferred Stocks (1) | 1,266,165 | — | 1,266,165 | — | ||||||||||||||
Common Stocks | ||||||||||||||||||
Australia | 3,222,163 | — | 3,222,163 | — | ||||||||||||||
Belgium | 4,022,161 | — | 4,022,161 | — | ||||||||||||||
Canada | 1,764,908 | 1,764,908 | — | — | ||||||||||||||
Cayman | 928,853 | — | 928,853 | — | ||||||||||||||
China | 1,469,695 | — | 1,469,695 | — | ||||||||||||||
Denmark | 1,696,887 | — | 1,696,887 | — | ||||||||||||||
Finland | 1,424,255 | — | 1,424,255 | — | ||||||||||||||
France | 27,403,621 | — | 27,403,621 | — | ||||||||||||||
Germany | 5,532,817 | — | 5,532,817 | — | ||||||||||||||
Hong Kong | 2,148,858 | — | 2,148,858 | — | ||||||||||||||
India | 886,239 | 886,239 | — | — | ||||||||||||||
Ireland | 1,188,867 | 1,188,867 | — | — | ||||||||||||||
Italy | 9,177,521 | — | 9,177,521 | — | ||||||||||||||
Japan | 39,195,782 | — | 39,195,782 | — | ||||||||||||||
Netherlands | 4,410,659 | — | 4,410,659 | — | ||||||||||||||
Norway | 2,539,701 | — | 2,539,701 | — | ||||||||||||||
Russia | 872,572 | 872,572 | — | — | ||||||||||||||
South Korea | 2,948,712 | — | 2,948,712 | — | ||||||||||||||
Spain | 3,467,442 | — | 3,467,442 | — | ||||||||||||||
Sweden | 2,315,794 | — | 2,315,794 | — | ||||||||||||||
Switzerland | 12,120,723 | — | 12,120,723 | — | ||||||||||||||
Taiwan | 856,837 | — | 856,837 | — | ||||||||||||||
Turkey | 1,048,674 | — | 1,048,674 | — | ||||||||||||||
United Kingdom | 35,882,126 | — | 35,882,126 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
166,525,867 | 4,712,586 | 161,813,281 | — | |||||||||||||||
Short-Term Investment | 13,021,382 | 13,021,382 | — | — | ||||||||||||||
Derivatives: | ||||||||||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Forward Foreign Currency Contracts | 2,304,242 | — | 2,304,242 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Assets | 183,120,118 | 17,736,430 | 165,383,688 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Liabilities | Derivatives: | |||||||||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Forward Foreign Currency Contracts | (2,510,571 | ) | — | (2,510,571 | ) | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities | (2,510,571 | ) | — | (2,510,571 | ) | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $180,609,547 | $17,736,430 | $162,873,117 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
(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-91 |
A-74
PACIFIC LIFE FUNDS
PL CURRENCY STRATEGIES FUND
Schedule of Investments
September 30, 2014 (Unaudited)
Principal | Value | |||||||
U.S. TREASURY OBLIGATIONS - 6.1% | ||||||||
U.S. Treasury Notes - 6.1% | ||||||||
0.375% due 03/15/15 ‡ | $12,100,000 | $12,118,670 | ||||||
|
| |||||||
Total U.S. Treasury Obligations | 12,118,670 | |||||||
|
| |||||||
FOREIGN GOVERNMENT BONDS & NOTES - 22.7% |
| |||||||
Canada - 6.0% | ||||||||
Canadian Government | CAD 13,260,000 | 11,846,208 | ||||||
|
| |||||||
France - 4.6% | ||||||||
France Government OAT | EUR 7,000,000 | 9,016,458 | ||||||
|
| |||||||
Germany - 5.9% | ||||||||
Bundesobligation | 9,175,000 | 11,708,256 | ||||||
|
| |||||||
United Kingdom - 6.2% | ||||||||
United Kingdom Gilt | GBP 7,430,000 | 12,132,578 | ||||||
|
| |||||||
Total Foreign Government Bonds & Notes | 44,703,500 | |||||||
|
|
Shares | Value | |||||||
SHORT-TERM INVESTMENTS – 71.3% |
| |||||||
Money Market Fund - 45.9% | ||||||||
BlackRock Liquidity Funds Treasury | 90,616,866 | $90,616,866 | ||||||
|
| |||||||
Principal | ||||||||
U.S. Treasury Bills - 25.4% | ||||||||
0.024% due 08/20/15 | $6,000,000 | 5,996,232 | ||||||
0.035% due 10/16/14 | 8,000,000 | 7,999,925 | ||||||
0.040% due 11/13/14 | 6,000,000 | 5,999,956 | ||||||
0.055% due 03/05/15 | 8,000,000 | 7,999,136 | ||||||
0.059% due 04/30/15 ‡ | 8,000,000 | 7,998,480 | ||||||
0.082% due 06/25/15 ‡ | 6,000,000 | 5,998,110 | ||||||
0.090% due 07/23/15 | 8,000,000 | 7,996,720 | ||||||
|
| |||||||
49,988,559 | ||||||||
|
| |||||||
Total Short-Term Investments | 140,605,425 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 100.1% | 197,427,595 | |||||||
OTHER ASSETS & LIABILITIES, NET - (0.1%) |
| (176,359 | ) | |||||
|
| |||||||
NET ASSETS - 100.0% | $197,251,236 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Short-Term Investments | 71.3% | |||
Foreign Government Bonds & Notes | 22.7% | |||
U.S. Treasury Obligations | 6.1% | |||
|
| |||
100.1% | ||||
Other Assets & Liabilities, Net | (0.1% | ) | ||
|
| |||
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. |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-75
PACIFIC LIFE FUNDS
PL CURRENCY STRATEGIES FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
(c) | Forward foreign currency contracts outstanding as of September 30, 2014 were as follows: |
Currency Purchased | Currency Sold | Expiration | Counterparty | Unrealized Appreciation | ||||||||||||||||
AUD | 32,763,597 | USD | 29,103,993 | 10/14 | BRC | ($457,800 | ) | |||||||||||||
AUD | 15,661,537 | USD | 14,077,842 | 10/14 | CIT | (385,993 | ) | |||||||||||||
AUD | 16,241,867 | USD | 14,601,032 | 10/14 | GSC | (401,838 | ) | |||||||||||||
CHF | 19,577,909 | USD | 20,618,000 | 10/14 | BRC | (107,778 | ) | |||||||||||||
CHF | 17,026,776 | USD | 17,930,000 | 10/14 | CIT | (92,398 | ) | |||||||||||||
CHF | 54,083,744 | USD | 57,685,064 | 10/14 | GSC | (1,025,817 | ) | |||||||||||||
CHF | 15,982,152 | USD | 16,832,000 | 10/14 | RBC | (88,767 | ) | |||||||||||||
EUR | 19,740,672 | USD | 25,600,000 | 10/14 | BRC | (663,070 | ) | |||||||||||||
EUR | 14,728,000 | USD | 19,034,734 | 10/14 | SEB | (429,942 | ) | |||||||||||||
GBP | 11,728,000 | USD | 19,063,946 | 10/14 | ANZ | (54,505 | ) | |||||||||||||
GBP | 9,400,000 | USD | 15,386,813 | 10/14 | CIT | (150,733 | ) | |||||||||||||
HUF | 3,440,050,000 | USD | 14,012,994 | 10/14 | GSC | (35,929 | ) | |||||||||||||
HUF | 294,450,000 | USD | 1,196,343 | 10/14 | GSC | 19 | ||||||||||||||
JPY | 1,785,843,535 | USD | 16,435,000 | 10/14 | ANZ | (149,544 | ) | |||||||||||||
JPY | 1,343,880,300 | USD | 12,532,105 | 10/14 | BRC | (276,999 | ) | |||||||||||||
JPY | 108,900,000 | USD | 996,386 | 10/14 | CSF | (3,328 | ) | |||||||||||||
JPY | 559,150,245 | USD | 5,129,000 | 10/14 | GSC | (30,000 | ) | |||||||||||||
JPY | 3,122,000,000 | USD | 29,289,629 | 10/14 | MSC | (820,133 | ) | |||||||||||||
JPY | 1,559,049,211 | USD | 14,336,000 | 10/14 | RBC | (118,726 | ) | |||||||||||||
MXN | 192,590,000 | USD | 14,546,073 | 10/14 | CSF | (224,451 | ) | |||||||||||||
NZD | 39,253,675 | USD | 31,860,245 | 10/14 | CIT | (1,281,621 | ) | |||||||||||||
NZD | 17,215,000 | USD | 13,680,020 | 10/14 | MSC | (265,264 | ) | |||||||||||||
NZD | 18,956,325 | USD | 15,388,555 | 10/14 | RBC | (621,572 | ) | |||||||||||||
PHP | 43,850,000 | USD | 986,058 | 10/14 | BRC | (9,367 | ) | |||||||||||||
PHP | 1,266,500,000 | USD | 28,777,551 | 10/14 | GSC | (568,214 | ) | |||||||||||||
SEK | 100,150,000 | USD | 14,099,210 | 10/14 | BRC | (221,320 | ) | |||||||||||||
SEK | 7,290,000 | USD | 1,005,938 | 10/14 | GSC | 4,245 | ||||||||||||||
SEK | 72,905,833 | USD | 10,257,000 | 10/14 | SEB | (154,490 | ) | |||||||||||||
USD | 29,504,562 | AUD | 32,405,000 | 10/14 | MSC | 1,168,610 | ||||||||||||||
USD | 26,436,095 | CAD | 29,110,000 | 10/14 | BRC | 455,362 | ||||||||||||||
USD | 22,611,588 | CHF | 21,136,400 | 10/14 | BOA | 468,659 | ||||||||||||||
USD | 25,600,000 | CHF | 23,890,637 | 10/14 | BRC | 571,676 | ||||||||||||||
USD | 21,348,669 | CHF | 19,946,873 | 10/14 | CIT | 451,913 | ||||||||||||||
USD | 1,009,509 | CHF | 965,000 | 10/14 | GSC | (1,420 | ) | |||||||||||||
USD | 94,008,403 | CHF | 87,982,748 | 10/14 | GSC | 1,835,885 | ||||||||||||||
USD | 43,727,749 | CHF | 40,815,000 | 10/14 | JPM | 970,161 | ||||||||||||||
USD | 19,300,937 | CHF | 18,062,106 | 10/14 | RBC | 378,701 | ||||||||||||||
USD | 7,005,267 | EUR | 5,415,000 | 10/14 | JPM | 165,036 | ||||||||||||||
USD | 16,366,923 | GBP | 10,018,000 | 10/14 | GSC | 129,126 | ||||||||||||||
USD | 25,960,415 | GBP | 16,095,000 | 10/14 | RBS | (127,996 | ) | |||||||||||||
USD | 10,257,000 | JPY | 1,116,474,450 | 10/14 | BOA | 75,652 | ||||||||||||||
USD | 18,833,728 | NOK | 120,388,769 | 10/14 | SEB | 109,407 | ||||||||||||||
USD | 77,253,043 | NZD | 94,565,000 | 10/14 | BRC | 3,563,446 | ||||||||||||||
USD | 8,200,000 | PHP | 369,676,500 | 10/14 | GSC | (33,975 | ) | |||||||||||||
USD | 5,825,000 | PHP | 261,474,930 | 10/14 | GSC | 1,049 | ||||||||||||||
USD | 18,898,815 | SEK | 135,023,394 | 10/14 | BRC | 188,718 | ||||||||||||||
|
| |||||||||||||||||||
Total Forward Foreign Currency Contracts | $1,734,675 | |||||||||||||||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-76
PACIFIC LIFE FUNDS
PL CURRENCY STRATEGIES FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
(d) | As of September 30, 2014, investments with a total aggregate value of $2,014,483 were fully or partially segregated with the broker(s)/custodian as collateral for forward foreign currency contracts. |
(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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | U.S. Treasury Obligations | $12,118,670 | $— | $12,118,670 | $— | |||||||||||||
Foreign Government Bonds & Notes | 44,703,500 | — | 44,703,500 | — | ||||||||||||||
Short-Term Investments | 140,605,425 | 90,616,866 | 49,988,559 | — | ||||||||||||||
Derivatives: | ||||||||||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Forward Foreign Currency Contracts | 10,537,665 | — | 10,537,665 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Assets | 207,965,260 | 90,616,866 | 117,348,394 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Liabilities | Derivatives: | |||||||||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Forward Foreign Currency Contracts | (8,802,990 | ) | — | (8,802,990 | ) | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities | (8,802,990 | ) | — | (8,802,990 | ) | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $199,162,270 | $90,616,866 | $108,545,404 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-77
PACIFIC LIFE FUNDS
PL GLOBAL ABSOLUTE RETURN FUND
Schedule of Investments
September 30, 2014 (Unaudited)
Shares | | |||||||
COMMON STOCKS - 1.2% | ||||||||
Germany - 0.4% | ||||||||
Deutsche Wohnen AG | 31,789 | $679,321 | ||||||
|
| |||||||
Luxembourg - 0.3% | ||||||||
GAGFAH SA * | 36,106 | 670,573 | ||||||
|
| |||||||
Singapore - 0.5% | ||||||||
Yoma Strategic Holdings Ltd * | 1,804,000 | 875,259 | ||||||
|
| |||||||
Total Common Stocks | 2,225,153 | |||||||
|
| |||||||
CLOSED-END MUTUAL FUND - 0.8% | ||||||||
Fondul Proprietatea SA * (Romania) | 5,067,731 | 1,376,617 | ||||||
|
| |||||||
Total Closed-End Mutual Fund | 1,376,617 | |||||||
|
| |||||||
Principal | ||||||||
CORPORATE BONDS & NOTES - 0.5% |
| |||||||
Hungary - 0.5% | ||||||||
Magyar Export-Import Bank Zrt | $875,000 | 869,969 | ||||||
|
| |||||||
Total Corporate Bonds & Notes | 869,969 | |||||||
|
| |||||||
SENIOR LOAN NOTES - 0.1% |
| |||||||
Ethiopia - 0.1% | ||||||||
Ethiopian Railways Corp | 256,874 | 259,517 | ||||||
|
| |||||||
Total Senior Loan Notes | 259,517 | |||||||
|
| |||||||
MORTGAGE-BACKED SECURITIES - 1.6% |
| |||||||
United States - 1.6% | ||||||||
Fannie Mae (IO) | ||||||||
5.000% due 12/25/42 " | 2,284,992 | 494,095 | ||||||
5.996% due 01/25/43 " § | 2,652,637 | 514,897 | ||||||
5.996% due 01/25/43 " § | 2,678,301 | 539,719 | ||||||
6.046% due 03/25/33 " § | 1,316,851 | 262,682 | ||||||
6.096% due 07/25/42 " § | 2,208,407 | 381,551 | ||||||
6.286% due 11/25/37 " § | 3,516,313 | 603,290 | ||||||
|
| |||||||
2,796,234 | ||||||||
|
| |||||||
Total Mortgage-Backed Securities | 2,796,234 | |||||||
|
| |||||||
FOREIGN GOVERNMENT BONDS & NOTES - 58.0% |
| |||||||
Albania - 0.2% | ||||||||
Albania Government | EUR 239,000 | 316,360 | ||||||
|
|
Principal | Value | |||||||
Argentina - 3.5% | ||||||||
Argentina Boden | $3,533,668 | $3,295,145 | ||||||
Argentina Bonar | 1,740,000 | 1,517,703 | ||||||
Argentine Republic Government | 1,894,153 | 1,520,378 | ||||||
|
| |||||||
6,333,226 | ||||||||
|
| |||||||
Barbados - 0.8% | ||||||||
Barbados Government | 1,732,000 | 1,411,580 | ||||||
|
| |||||||
Belarus - 0.6% | ||||||||
Republic of Belarus | 976,000 | 1,000,595 | ||||||
|
| |||||||
Bermuda - 0.6% | ||||||||
Bermuda Government | 1,055,000 | 1,094,563 | ||||||
|
| |||||||
Cyprus - 1.8% | ||||||||
Cyprus Government | EUR 2,513,000 | 3,204,215 | ||||||
|
| |||||||
Dominican Republic - 2.1% | ||||||||
Dominican Republic Central Bank | DOP 14,920,000 | 357,271 | ||||||
Dominican Republic | ||||||||
11.500% due 05/10/24 ~ | 22,000,000 | 534,965 | ||||||
14.000% due 04/30/21 ~ | 8,400,000 | 218,631 | ||||||
14.500% due 02/10/23 ~ | 2,300,000 | 60,871 | ||||||
14.500% due 02/10/23 ~ | 26,300,000 | 696,043 | ||||||
15.950% due 06/04/21 ~ | 13,000,000 | 381,628 | ||||||
18.500% due 02/04/28 ~ | 51,400,000 | 1,596,307 | ||||||
|
| |||||||
3,845,716 | ||||||||
|
| |||||||
Ecuador - 1.9% | ||||||||
Ecuador Government | ||||||||
7.950% due 06/20/24 ~ | $2,550,000 | 2,664,750 | ||||||
9.375% due 12/15/15 ~ | 643,000 | 678,365 | ||||||
|
| |||||||
3,343,115 | ||||||||
|
| |||||||
Fiji - 1.0% | ||||||||
Republic of The Fiji Islands | 1,740,000 | 1,803,127 | ||||||
|
| |||||||
Indonesia - 0.7% | ||||||||
Indonesia Treasury | IDR 14,877,000,000 | 1,216,349 | ||||||
|
| |||||||
Iraq - 2.0% | ||||||||
Republic of Iraq | $4,021,000 | 3,628,953 | ||||||
|
| |||||||
Jamaica - 0.5% | ||||||||
Jamaica Government | 916,000 | 980,120 | ||||||
|
| |||||||
Jordan - 0.5% | ||||||||
Jordan Government | ||||||||
3.875% due 11/12/15 ~ | 800,000 | 808,000 | ||||||
7.950% due 02/05/15 + | JOD 100,000 | 143,544 | ||||||
|
| |||||||
951,544 | ||||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-78
PACIFIC LIFE FUNDS
PL GLOBAL ABSOLUTE RETURN FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal | Value | |||||||
Lebanon - 5.8% | ||||||||
Lebanon Government | ||||||||
4.100% due 06/12/15 ~ | $400,000 | $402,617 | ||||||
8.500% due 01/19/16 ~ | 3,345,000 | 3,562,425 | ||||||
Lebanon Treasury | ||||||||
5.940% due 02/05/15 | LBP 391,000,000 | 259,588 | ||||||
6.500% due 04/02/15 | 2,650,140,000 | 1,764,208 | ||||||
6.500% due 05/14/15 | 1,497,760,000 | 994,448 | ||||||
6.500% due 06/25/15 | 2,835,780,000 | 1,891,757 | ||||||
7.540% due 01/15/15 | 2,469,440,000 | 1,646,327 | ||||||
|
| |||||||
10,521,370 | ||||||||
|
| |||||||
Macedonia - 3.0% | ||||||||
Republic of Macedonia | EUR 4,190,000 | 5,368,411 | ||||||
|
| |||||||
New Zealand - 1.5% | ||||||||
New Zealand Government | ||||||||
2.000% due 09/20/25 ^ | NZD 1,338,326 | 1,020,743 | ||||||
3.000% due 09/20/30 ^ | 1,125,553 | 913,356 | ||||||
5.500% due 04/15/23 ~ | 907,000 | 776,991 | ||||||
|
| |||||||
2,711,090 | ||||||||
|
| |||||||
Pakistan - 1.2% | ||||||||
Pakistan Government | ||||||||
7.250% due 04/15/19 ~ | $1,128,000 | 1,143,510 | ||||||
8.250% due 04/15/24 ~ | 976,000 | 980,880 | ||||||
|
| |||||||
2,124,390 | ||||||||
|
| |||||||
Philippines - 1.2% | ||||||||
Philippine Government | PHP 85,990,000 | 2,085,420 | ||||||
|
| |||||||
Romania - 0.5% | ||||||||
Romanian Government | EUR 625,000 | 849,324 | ||||||
|
| |||||||
Serbia - 6.5% | ||||||||
Serbia Treasury | ||||||||
10.000% due 01/10/15 | RSD 258,430,000 | 2,804,884 | ||||||
10.000% due 01/30/16 | 41,900,000 | 456,699 | ||||||
10.000% due 04/25/16 | 76,100,000 | 831,191 | ||||||
10.000% due 04/01/17 | 164,390,000 | 1,776,043 | ||||||
10.000% due 05/08/17 | 276,810,000 | 2,983,940 | ||||||
10.000% due 01/24/18 | 103,830,000 | 1,107,621 | ||||||
10.000% due 06/05/21 | 185,040,000 | 1,831,368 | ||||||
|
| |||||||
11,791,746 | ||||||||
| �� | |||||||
Slovenia - 9.2% | ||||||||
Slovenia Government | ||||||||
4.125% due 02/18/19 ~ | $2,795,000 | 2,917,281 | ||||||
4.125% due 01/26/20 ~ | EUR 320,000 | 455,860 | ||||||
4.375% due 01/18/21 ~ | 1,818,000 | 2,631,626 | ||||||
4.625% due 09/09/24 ~ | 1,055,000 | 1,559,974 | ||||||
5.125% due 03/30/26 ~ | 2,587,000 | 3,971,582 | ||||||
5.500% due 10/26/22 ~ | $1,665,000 | 1,814,850 | ||||||
5.850% due 05/10/23 ~ | 2,802,000 | 3,131,235 | ||||||
|
| |||||||
16,482,408 | ||||||||
|
| |||||||
Sri Lanka - 1.6% | ||||||||
Sri Lanka Government | ||||||||
6.500% due 07/15/15 | LKR 16,280,000 | 125,409 | ||||||
8.000% due 09/01/16 | 161,600,000 | 1,279,397 | ||||||
8.500% due 11/01/15 | 35,710,000 | 280,797 | ||||||
8.750% due 05/15/17 | 57,290,000 | 464,001 |
Principal | Value | |||||||
9.000% due 10/01/14 | LKR 51,770,000 | $396,973 | ||||||
11.750% due 03/15/15 | 37,500,000 | 294,983 | ||||||
|
| |||||||
2,841,560 | ||||||||
|
| |||||||
Tanzania - 2.2% | ||||||||
Tanzania Government | $3,655,000 | 3,956,538 | ||||||
|
| |||||||
Turkey - 3.9% | ||||||||
Turkey Government | ||||||||
3.000% due 07/21/21 ^ | TRY 2,321,217 | 1,079,778 | ||||||
3.000% due 02/23/22 ^ | 1,269,665 | 593,130 | ||||||
4.000% due 04/01/20 ^ | 11,166,849 | 5,425,111 | ||||||
|
| |||||||
7,098,019 | ||||||||
|
| |||||||
Uganda - 1.0% | ||||||||
Republic of Uganda Government | ||||||||
14.125% due 12/01/16 | UGX 2,267,400,000 | 868,991 | ||||||
14.625% due 11/01/18 | 2,358,500,000 | 923,266 | ||||||
|
| |||||||
1,792,257 | ||||||||
|
| |||||||
Uruguay - 1.7% | ||||||||
Uruguay Letras de Regulacion Monetaria | UYU 1,000,000 | 34,058 | ||||||
Uruguay Notas del Tesoro | ||||||||
2.250% due 08/23/17 ^ | 14,782,661 | 561,850 | ||||||
2.750% due 06/16/16 ^ | 14,235,694 | 554,189 | ||||||
4.250% due 01/05/17 ^ | 17,165,460 | 689,372 | ||||||
Uruguay Treasury | ||||||||
12.970% due 07/28/16 | 8,220,000 | 263,427 | ||||||
14.500% due 11/26/15 | 4,580,000 | 158,472 | ||||||
15.000% due 08/20/15 | 4,300,000 | 153,840 | ||||||
15.000% due 10/08/15 | 14,620,000 | 514,118 | ||||||
15.200% due 02/20/15 | 4,300,000 | 164,994 | ||||||
15.420% due 04/21/16 | 1,313,000 | 43,356 | ||||||
|
| |||||||
3,137,676 | ||||||||
|
| |||||||
Venezuela - 1.2% | ||||||||
Venezuela Government | $2,598,000 | 2,221,290 | ||||||
|
| |||||||
Zambia - 1.3% | ||||||||
Zambia Government | 2,065,000 | 2,350,228 | ||||||
|
| |||||||
Total Foreign Government Bonds & Notes | 104,461,190 | |||||||
|
| |||||||
PURCHASED OPTIONS - 1.5% | ||||||||
(See Note (i) in Notes to Schedule of Investments) |
| 2,791,028 | ||||||
|
| |||||||
SHORT-TERM INVESTMENTS - 34.3% | ||||||||
Foreign Government Issues - 19.3% | ||||||||
Croatia Treasury Bills (Croatia) | EUR 2,866,000 | 3,621,167 | ||||||
Kenya Treasury Bills (Kenya) | ||||||||
8.220% due 04/13/15 | KES 142,200,000 | 1,521,827 | ||||||
8.530% due 05/04/15 | 132,600,000 | 1,410,773 | ||||||
8.540% due 04/27/15 | 141,600,000 | 1,509,499 | ||||||
8.610% due 03/16/15 | 203,700,000 | 2,195,478 | ||||||
9.158% due 11/24/14 | 110,600,000 | 1,223,526 | ||||||
Lebanon Treasury Bills (Lebanon) | ||||||||
5.180% due 01/22/15 | LBP 1,196,535,000 | 780,222 | ||||||
5.267% due 10/16/14 | 513,000,000 | 338,607 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-79
PACIFIC LIFE FUNDS
PL GLOBAL ABSOLUTE RETURN FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Principal | Value | |||||||
5.300% due 02/05/15 | LBP 2,941,190,000 | $1,913,971 | ||||||
5.300% due 02/19/15 | 2,983,330,000 | 1,937,330 | ||||||
5.315% due 12/25/14 | 2,087,070,000 | 1,366,059 | ||||||
Nigeria OMO Bills (Nigeria) | ||||||||
10.710% due 10/02/14 | NGN 120,815,000 | 736,928 | ||||||
10.810% due 12/11/14 | 48,100,000 | 287,705 | ||||||
Nigeria Treasury Bills (Nigeria) | ||||||||
10.330% due 12/04/14 | 37,300,000 | 223,411 | ||||||
10.610% due 10/23/14 | 151,800,000 | 920,872 | ||||||
10.810% due 11/06/14 | 42,285,000 | 255,457 | ||||||
Republic of Uganda Treasury Bills (Uganda) | UGX 295,000,000 | 99,801 | ||||||
Serbia Treasury Bills (Serbia) | ||||||||
8.140% due 01/29/15 | RSD 200,740,000 | 2,110,998 | ||||||
8.660% due 02/26/15 | 121,110,000 | 1,265,859 | ||||||
8.940% due 03/12/15 | 14,370,000 | 149,758 | ||||||
Sri Lanka Treasury Bills (Sri Lanka) | ||||||||
6.310% due 09/11/15 | LKR 68,660,000 | 498,404 | ||||||
6.370% due 11/28/14 | 75,970,000 | 577,130 | ||||||
6.420% due 10/10/14 | 12,700,000 | 97,250 | ||||||
6.470% due 11/07/14 | 9,990,000 | 76,152 | ||||||
6.520% due 12/12/14 | 43,330,000 | 328,558 | ||||||
7.000% due 06/26/15 | 91,430,000 | 671,290 | ||||||
7.010% due 06/19/15 | 101,580,000 | 746,691 | ||||||
7.020% due 12/26/14 | 308,200,000 | 2,333,433 | ||||||
7.020% due 03/06/15 | 30,950,000 | 231,501 | ||||||
7.020% due 05/08/15 | 23,900,000 | 176,905 | ||||||
7.030% due 05/01/15 | 43,140,000 | 319,711 | ||||||
7.030% due 06/05/15 | 176,340,000 | 1,299,286 | ||||||
7.040% due 02/27/15 | 87,550,000 | 655,487 | ||||||
7.040% due 04/17/15 | 42,210,000 | 313,896 | ||||||
7.060% due 03/13/15 | 50,280,000 | 375,804 | ||||||
7.060% due 03/27/15 | 83,130,000 | 620,454 | ||||||
7.070% due 02/13/15 | 24,500,000 | 183,844 | ||||||
7.100% due 02/20/15 | 29,770,000 | 223,138 | ||||||
7.320% due 12/19/14 | 80,010,000 | 606,213 | ||||||
9.460% due 10/31/14 | 76,620,000 | 584,729 | ||||||
Uruguay Treasury Bills (Uruguay) | ||||||||
13.820% due 10/15/14 | UYU 521,000 | 20,929 | ||||||
|
| |||||||
34,810,053 | ||||||||
|
| |||||||
Shares | ||||||||
Money Market Fund - 12.5% | ||||||||
BlackRock Liquidity Funds Treasury | 22,422,380 | 22,422,380 | ||||||
|
| |||||||
Principal | ||||||||
U.S. Treasury Bills - 1.7% | ||||||||
0.026% due 10/09/14 ‡ | $2,500,000 | 2,499,997 | ||||||
0.015% due 12/11/14 | 500,000 | 499,990 | ||||||
|
| |||||||
2,999,987 | ||||||||
|
| |||||||
Repurchase Agreements - 0.8% | ||||||||
Barclays PLC | 276,080 | 276,080 |
Principal | Value | |||||||
Nomura Securities | EUR 949,426 | $1,199,179 | ||||||
|
| |||||||
1,475,259 | ||||||||
|
| |||||||
Total Short-Term Investments | 61,707,679 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 98.0% | 176,487,387 | |||||||
SECURITIES SOLD SHORT - (0.8%) |
| |||||||
(See Note (f) in Notes to Schedule of Investments) (Proceeds $1,266,538) |
| (1,452,324 | ) | |||||
OTHER ASSETS & LIABILITIES, NET - 2.8% |
| 5,054,935 | ||||||
|
| |||||||
NET ASSETS - 100.0% | $180,089,998 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified as a percentage of net assets as follows: |
Foreign Government Bonds & Notes | 58.0% | |||
Short-Term Investments | 34.3% | |||
Others (each less than 3.0%) | 5.7% | |||
|
| |||
98.0% | ||||
Securities Sold Short | (0.8% | ) | ||
Other Assets & Liabilities, Net | 2.8% | |||
|
| |||
100.0% | ||||
|
|
(b) | Investments reflect the stated coupon rate or for discounted investments or zero coupon bonds, the annualized effective yield on the date of purchase. |
(c) | Investments with a total aggregate value of $403,061 or 0.2% of the fund’s net assets were valued by the Trustee Valuation Committee or determined by a valuation committee established under the Valuation Policy and then subsequently submitted for approval or ratification to either the Trustee Valuation Committee, or to the Board of Trustees. |
(d) | An investment with a value of $1,520,378 or 0.8% of the fund’s net assets was in default as of September 30, 2014. |
(e) | Pursuant to the terms of the following senior loan agreement, the fund had an unfunded loan commitment of $143,126 or less than 0.1% of the net assets as of September 30, 2014, which could be extended at the option of the borrower: |
Borrower | Unfunded Loan Commitment | Value | Unrealized Appreciation | |||||||||
Ethiopian Railways Corp | $143,126 | $144,599 | $1,473 | |||||||||
|
|
|
|
|
|
(f) | Securities sold short outstanding as of September 30, 2014 were as follows: |
Description | Principal Amount | Value | ||||||
Foreign Government Bonds & Notes – (0.8%) |
| |||||||
SoQ Sukuk A QSC | $272,000 | ($273,700 | ) | |||||
Spain Government | EUR 730,000 | (1,178,624 | ) | |||||
|
| |||||||
Total Securities Sold Short | ($1,452,324 | ) | ||||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-80
PACIFIC LIFE FUNDS
PL GLOBAL ABSOLUTE RETURN FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
(g) | Open futures contracts outstanding as of September 30, 2014 were as follows: |
Long Futures Outstanding | Number of Contracts | Unrealized Appreciation (Depreciation) | ||||||
Eris 10-Year Deliverable Interest Rate Swap (12/14) | 27 | ($28,305) | ||||||
SGX CNX Nifty Index (10/14) | 278 | (79,674) | ||||||
TOPIX Index (12/14) | 32 | 110,065 | ||||||
|
| |||||||
2,086 | ||||||||
|
| |||||||
Short Futures Outstanding | ||||||||
Euro-Bobl 5-Year Notes (12/14) | 43 | (25,009) | ||||||
Euro-Bund 10-Year Notes (12/14) | 35 | (35,875) | ||||||
Eurodollar 90-Day Notes (03/16) | 284 | 35,074 | ||||||
Japanese Government 10-Year Bonds (12/14) | 15 | (12,416) | ||||||
United Kingdom Long Gilt (12/14) | 23 | (14,934) | ||||||
U.S. 2-Year Deliverable Interest Rate Swap (12/14) | 38 | 4,794 | ||||||
U.S. 5-Year Deliverable Interest Rate Swap (12/14) | 107 | 57,008 | ||||||
U.S. 10-Year Deliverable Interest Rate Swap (12/14) | 107 | 65,529 | ||||||
|
| |||||||
74,171 | ||||||||
|
| |||||||
Total Futures Contracts | $76,257 | |||||||
|
|
(h) | Forward foreign currency contracts outstanding as of September 30, 2014 were as follows: |
Currency Purchased | Currency Sold | Expiration | Counterparty | Unrealized Appreciation (Depreciation) | ||||||||||||||||
ARS | 24,000,000 | USD | 2,073,071 | 02/15 | CIT | $258,639 | ||||||||||||||
AUD | 1,753,735 | USD | 1,647,255 | 10/14 | DUB | (112,926 | ) | |||||||||||||
CAD | 1,780,000 | USD | 1,654,195 | 10/14 | JPM | (65,831 | ) | |||||||||||||
CHF | 3,281,200 | USD | 3,545,503 | 10/14 | BNP | (107,797 | ) | |||||||||||||
EUR | 1,276,000 | GBP | 1,013,501 | 11/14 | CIT | (30,150 | ) | |||||||||||||
EUR | 53,000 | GBP | 42,129 | 11/14 | GSC | (1,305 | ) | |||||||||||||
EUR | 2,692,000 | GBP | 2,137,744 | �� | 11/14 | MSC | (62,867 | ) | ||||||||||||
EUR | 1,206,000 | GBP | 957,142 | 11/14 | SCB | (27,265 | ) | |||||||||||||
EUR | 3,146,349 | PLN | 13,256,760 | 10/14 | BNP | (26,183 | ) | |||||||||||||
EUR | 2,027,747 | PLN | 8,559,240 | 10/14 | CIT | (21,574 | ) | |||||||||||||
EUR | 1,513,803 | PLN | 6,309,752 | 10/14 | GSC | 8,067 | ||||||||||||||
EUR | 3,304,194 | RON | 14,826,769 | 03/15 | BNP | (20,639 | ) | |||||||||||||
EUR | 2,030,561 | RON | 9,153,849 | 03/15 | CIT | (23,336 | ) | |||||||||||||
EUR | 616,144 | RON | 2,776,700 | 03/15 | DUB | (6,826 | ) | |||||||||||||
EUR | 1,516,561 | RON | 6,749,000 | 03/15 | GSC | 7,407 | ||||||||||||||
EUR | 903,565 | RON | 4,050,231 | 03/15 | JPM | (4,426 | ) | |||||||||||||
EUR | 525,928 | RON | 2,358,000 | 03/15 | SCB | (2,725 | ) | |||||||||||||
EUR | 2,731,000 | USD | 3,491,001 | 10/14 | GSC | (41,557 | ) | |||||||||||||
EUR | 280,301 | USD | 372,378 | 10/14 | JPM | (18,290 | ) | |||||||||||||
EUR | 372,942 | USD | 482,829 | 11/14 | GSC | (11,621 | ) | |||||||||||||
EUR | 775,835 | USD | 1,004,486 | 12/14 | JPM | (24,122 | ) | |||||||||||||
GBP | 764,020 | EUR | 954,000 | 11/14 | DUB | 32,714 | ||||||||||||||
GBP | 2,305,676 | EUR | 2,879,000 | 11/14 | HSB | 98,725 | ||||||||||||||
GBP | 1,117,765 | EUR | 1,394,000 | 11/14 | JPM | 50,016 | ||||||||||||||
IDR | 7,321,125,000 | USD | 615,945 | 10/14 | DUB | (17,473 | ) | |||||||||||||
IDR | 9,324,500,000 | USD | 796,471 | 10/14 | GSC | (34,231 | ) | |||||||||||||
IDR | 11,864,390,791 | USD | 1,001,130 | 11/14 | BNP | (36,067 | ) | |||||||||||||
IDR | 5,808,846,000 | USD | 468,078 | 11/14 | CIT | 4,977 | ||||||||||||||
IDR | 11,360,204,000 | USD | 957,991 | 11/14 | SCB | (33,939 | ) | |||||||||||||
INR | 108,961,000 | USD | 1,782,440 | 10/14 | BNP | (22,852 | ) | |||||||||||||
INR | 46,270,000 | USD | 757,103 | 10/14 | DUB | (9,114 | ) | |||||||||||||
INR | 98,654,000 | USD | 1,615,742 | 10/14 | GSC | (20,925 | ) | |||||||||||||
INR | 81,311,000 | USD | 1,329,861 | 10/14 | SCB | (17,511 | ) | |||||||||||||
INR | 108,522,000 | USD | 1,754,742 | 11/14 | CIT | (18,093 | ) | |||||||||||||
INR | 66,310,000 | USD | 1,071,850 | 11/14 | GSC | (7,410 | ) | |||||||||||||
INR | 113,958,000 | USD | 1,841,745 | 11/14 | JPM | (18,106 | ) | |||||||||||||
INR | 107,289,000 | USD | 1,733,683 | 11/14 | SCB | (16,766 | ) | |||||||||||||
JPY | 118,441,000 | USD | 1,157,136 | 11/14 | GSC | (76,839 | ) | |||||||||||||
KZT | 71,821,000 | USD | 434,620 | 10/14 | CIT | (41,154 | ) | |||||||||||||
KZT | 71,000,000 | USD | 430,433 | 10/14 | HSB | (42,227 | ) | |||||||||||||
KZT | 49,000,000 | USD | 297,420 | 10/14 | JPM | (29,293 | ) | |||||||||||||
KZT | 87,400,000 | USD | 531,307 | 11/14 | CIT | (54,207 | ) | |||||||||||||
KZT | 275,000,000 | USD | 1,692,308 | 11/14 | JPM | (195,275 | ) | |||||||||||||
MXN | 56,904,000 | USD | 4,365,310 | 10/14 | CIT | (137,201 | ) | |||||||||||||
MXN | 47,400,000 | USD | 3,555,249 | 11/14 | BNP | (36,847 | ) |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-81
PACIFIC LIFE FUNDS
PL GLOBAL ABSOLUTE RETURN FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Currency Purchased | Currency Sold | Expiration | Counterparty | Unrealized Appreciation (Depreciation) | ||||||||||||||||
MXN | 12,959,000 | USD | 961,877 | 11/14 | BNP | $42 | ||||||||||||||
MXN | 35,041,000 | USD | 2,600,590 | 11/14 | CIT | 429 | ||||||||||||||
MXN | 6,691,000 | USD | 496,247 | 11/14 | MSC | 411 | ||||||||||||||
PEN | 5,363,000 | USD | 1,840,741 | 12/14 | BNP | (10,135 | ) | |||||||||||||
PEN | 4,554,000 | USD | 1,564,142 | 12/14 | CIT | (9,680 | ) | |||||||||||||
PHP | 74,550,000 | USD | 1,708,295 | 11/14 | DUB | (48,615 | ) | |||||||||||||
PHP | 77,977,000 | USD | 1,786,517 | 11/14 | GSC | (50,543 | ) | |||||||||||||
PHP | 61,690,000 | USD | 1,413,611 | 11/14 | SCB | (40,229 | ) | |||||||||||||
PLN | 3,466,752 | EUR | 822,762 | 10/14 | BNP | 6,660 | ||||||||||||||
PLN | 2,941,382 | EUR | 697,886 | 10/14 | CIT | 5,853 | ||||||||||||||
PLN | 42,047,000 | EUR | 10,094,470 | 10/14 | JPM | (62,312 | ) | |||||||||||||
RON | 30,695,987 | EUR | 6,701,258 | 03/15 | CIT | 216,498 | ||||||||||||||
RON | 3,980,791 | EUR | 866,682 | 03/15 | JPM | 31,407 | ||||||||||||||
RON | 5,237,771 | EUR | 1,139,100 | 03/15 | SCB | 42,900 | ||||||||||||||
RON | 1,634,000 | USD | 478,533 | 10/14 | BNP | (10,755 | ) | |||||||||||||
RSD | 13,290,000 | EUR | 108,401 | 03/15 | CIT | 2,005 | ||||||||||||||
RSD | 79,508,000 | EUR | 650,638 | 03/15 | DUB | 10,385 | ||||||||||||||
RUB | 24,576,000 | USD | 686,826 | 10/14 | BNP | (68,425 | ) | |||||||||||||
RUB | 78,867,000 | USD | 2,035,866 | 10/14 | HSB | (51,351 | ) | |||||||||||||
RUB | 46,973,000 | USD | 1,212,777 | 10/14 | JPM | (30,805 | ) | |||||||||||||
RUB | 137,763,000 | USD | 3,540,555 | 12/14 | CIT | (109,026 | ) | |||||||||||||
SGD | 3,898,813 | USD | 3,144,257 | 10/14 | DUB | (88,031 | ) | |||||||||||||
THB | 115,025,000 | USD | 3,567,395 | 10/14 | GSC | (21,229 | ) | |||||||||||||
THB | 13,946,000 | USD | 432,126 | 10/14 | SCB | (2,480 | ) | |||||||||||||
THB | 8,990,000 | USD | 278,190 | 11/14 | GSC | (1,486 | ) | |||||||||||||
THB | 29,949,000 | USD | 925,580 | 12/14 | CIT | (5,389 | ) | |||||||||||||
THB | 92,795,000 | USD | 2,867,860 | 12/14 | GSC | (16,134 | ) | |||||||||||||
TRY | 2,653,400 | USD | 1,171,437 | 10/14 | CIT | (6,230 | ) | |||||||||||||
TRY | 6,507,600 | USD | 2,884,894 | 10/14 | HSB | (27,162 | ) | |||||||||||||
TRY | 1,478,000 | USD | 647,677 | 10/14 | SCB | 1,368 | ||||||||||||||
TRY | 6,857,870 | USD | 2,988,048 | 05/15 | MSC | (148,537 | ) | |||||||||||||
TRY | 799,028 | USD | 329,768 | 05/15 | SCB | 1,071 | ||||||||||||||
UGX | 938,510,000 | USD | 343,148 | 01/15 | CIT | 564 | ||||||||||||||
UGX | 4,342,096,000 | USD | 1,590,511 | 01/15 | SCB | (297 | ) | |||||||||||||
USD | 2,306,619 | ARS | 24,000,000 | 02/15 | CIT | (25,091 | ) | |||||||||||||
USD | 7,052,012 | AUD | 7,549,000 | 10/14 | DUB | 447,451 | ||||||||||||||
USD | 3,046,231 | AUD | 3,263,061 | 10/14 | JPM | 195,895 | ||||||||||||||
USD | 9,316,932 | CAD | 10,012,711 | 10/14 | DUB | 382,197 | ||||||||||||||
USD | 234,724 | CAD | 257,000 | 10/14 | JPM | 5,393 | ||||||||||||||
USD | 10,753,772 | CHF | 9,770,931 | 11/14 | GSC | 516,168 | ||||||||||||||
USD | 92,602 | EUR | 69,000 | 10/14 | DUB | 5,437 | ||||||||||||||
USD | 9,055,748 | EUR | 6,783,494 | 10/14 | GSC | 486,776 | ||||||||||||||
USD | 4,396,051 | EUR | 3,231,000 | 10/14 | JPM | 314,672 | ||||||||||||||
USD | 1,907,280 | EUR | 1,437,197 | 11/14 | GSC | 91,334 | ||||||||||||||
USD | 16,811,140 | EUR | 12,526,370 | 11/14 | SCB | 983,347 | ||||||||||||||
USD | 1,768,331 | EUR | 1,378,300 | 12/14 | CIT | 26,415 | ||||||||||||||
USD | 884,246 | EUR | 689,100 | 12/14 | DUB | 13,351 | ||||||||||||||
USD | 4,999,121 | EUR | 3,878,533 | 12/14 | GSC | 97,403 | ||||||||||||||
USD | 4,438,517 | EUR | 3,350,943 | 12/14 | JPM | 204,004 | ||||||||||||||
USD | 8,625,195 | EUR | 6,650,112 | 12/14 | SCB | 220,551 | ||||||||||||||
USD | 1,757,161 | IDR | 20,778,427,000 | 10/14 | BNP | 58,610 | ||||||||||||||
USD | 608,860 | INR | 37,514,000 | 10/14 | BNP | 2,418 | ||||||||||||||
USD | 750,972 | INR | 46,270,000 | 10/14 | DUB | 2,982 | ||||||||||||||
USD | 1,615,641 | INR | 98,654,000 | 10/14 | GSC | 20,824 | ||||||||||||||
USD | 404,795 | INR | 25,071,000 | 11/14 | DUB | 3,591 | ||||||||||||||
USD | 358,699 | INR | 22,237,000 | 11/14 | GSC | 1,740 | ||||||||||||||
USD | 10,990,878 | JPY | 1,124,993,253 | 11/14 | GSC | 729,845 | ||||||||||||||
USD | 1,595,151 | KES | 147,711,000 | 03/15 | JPM | 3,441 | ||||||||||||||
USD | 1,044,603 | KZT | 191,821,000 | 10/14 | DUB | (5,196 | ) | |||||||||||||
USD | 1,964,086 | KZT | 362,400,000 | 11/14 | DUB | (10,047 | ) | |||||||||||||
USD | 437,294 | LKR | 57,045,000 | 10/14 | SCB | — | ||||||||||||||
USD | 1,103,589 | MXN | 14,403,000 | 10/14 | CIT | 33,410 | ||||||||||||||
USD | 3,224,193 | NZD | 3,825,930 | 10/14 | GSC | 247,237 | ||||||||||||||
USD | 1,754,154 | RON | 6,038,500 | 11/14 | BNP | 31,972 | ||||||||||||||
USD | 946,943 | RUB | 35,695,000 | 10/14 | HSB | 48,756 | ||||||||||||||
USD | 1,556,432 | RUB | 58,623,000 | 10/14 | JPM | 81,313 | ||||||||||||||
USD | 1,488,291 | RUB | 56,098,000 | 10/14 | MSC | 76,708 | ||||||||||||||
USD | 1,434,560 | RUB | 54,958,000 | 12/14 | CIT | 65,615 | ||||||||||||||
USD | 2,160,318 | RUB | 82,805,000 | 12/14 | MSC | 97,734 | ||||||||||||||
USD | 3,092,899 | SGD | 3,850,000 | 10/14 | SCB | 74,976 |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-82
PACIFIC LIFE FUNDS
PL GLOBAL ABSOLUTE RETURN FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Currency Purchased | Currency Sold | Expiration | Counterparty | Unrealized Appreciation (Depreciation) | ||||||||||||||||
USD | 1,079,702 | SGD | 1,375,000 | 01/15 | SCB | $— | ||||||||||||||
USD | 3,528,374 | THB | 115,025,000 | 10/14 | GSC | (17,793 | ) | |||||||||||||
USD | 436,344 | THB | 13,946,000 | 10/14 | SCB | 6,698 | ||||||||||||||
USD | 278,044 | THB | 8,990,000 | 11/14 | GSC | 1,340 | ||||||||||||||
USD | 915,312 | THB | 29,949,000 | 12/14 | CIT | (4,879 | ) | |||||||||||||
USD | 1,065,128 | THB | 34,835,000 | 12/14 | GSC | (5,187 | ) | |||||||||||||
USD | 1,795,956 | THB | 57,960,000 | 12/14 | GSC | 14,545 | ||||||||||||||
USD | 2,269,961 | TRY | 4,938,972 | 10/14 | BNP | 101,073 | ||||||||||||||
USD | 2,291,683 | TRY | 4,901,000 | 10/14 | DUB | 139,469 | ||||||||||||||
USD | 350,144 | TRY | 799,028 | 10/14 | SCB | (740 | ) | |||||||||||||
USD | 4,737,958 | TRY | 11,185,000 | 05/15 | BNP | 106,791 | ||||||||||||||
USD | 609,988 | TRY | 1,478,000 | 05/15 | SCB | (1,981 | ) | |||||||||||||
USD | 1,337,919 | TRY | 3,163,000 | 05/15 | SCB | 28,273 | ||||||||||||||
USD | 384,199 | UGX | 1,048,864,000 | 01/15 | SCB | 72 | ||||||||||||||
USD | 370,475 | ZAR | 4,022,000 | 10/14 | GSC | 14,500 | ||||||||||||||
USD | 3,840,380 | ZAR | 41,902,387 | 10/14 | SCB | 131,724 | ||||||||||||||
USD | 1,945,215 | ZAR | 21,061,811 | 12/14 | CIT | 100,466 | ||||||||||||||
USD | 1,924,570 | ZAR | 20,840,594 | 12/14 | JPM | 99,197 | ||||||||||||||
UYU | 9,215,000 | USD | 390,797 | 12/14 | CIT | (28,665 | ) | |||||||||||||
UYU | 26,860,000 | USD | 1,122,206 | 01/15 | CIT | (73,964 | ) | |||||||||||||
UYU | 36,121,000 | USD | 1,472,326 | 02/15 | CIT | (76,682 | ) | |||||||||||||
UYU | 16,465,000 | USD | 671,017 | 03/15 | CIT | (43,397 | ) | |||||||||||||
UYU | 14,000,000 | USD | 552,923 | 04/15 | CIT | (24,580 | ) | |||||||||||||
ZAR | 12,145,000 | USD | 1,141,671 | 10/14 | GSC | (66,753 | ) | |||||||||||||
|
| |||||||||||||||||||
Total Forward Foreign Currency Contracts | $4,427,076 | |||||||||||||||||||
|
|
(i) | Purchased options outstanding as of September 30, 2014 were as follows: |
Foreign Currency Options
Description | Exercise Price | Expiration Date | Counter- party | Notional Amount | Cost | Value | ||||||||||||||||
Call - CHF versus EUR | CHF 1.23 | 10/13/14 | DUB | EUR 142,000 | $32,937 | $2,466 | ||||||||||||||||
Call - GBP versus USD | $1.63 | 03/17/15 | GSC | $4,363,000 | 89,965 | 93,621 | ||||||||||||||||
Call - GBP versus USD | 1.63 | 03/17/15 | MSC | 2,637,000 | 54,059 | 56,585 | ||||||||||||||||
Call - CAD versus USD | CAD 1.11 | 03/30/15 | HSB | 3,131,532 | 97,464 | 88,007 | ||||||||||||||||
Call - CAD versus USD | 1.11 | 03/30/15 | SCB | 918,018 | 29,113 | 26,288 | ||||||||||||||||
Call - CAD versus USD | 1.13 | 03/30/15 | CIT | 2,019,469 | 48,167 | 39,998 | ||||||||||||||||
Call - CAD versus USD | 1.13 | 03/30/15 | GSC | 2,048,673 | 48,864 | 40,576 | ||||||||||||||||
Call - AUD versus USD | $0.85 | 04/29/15 | CIT | 4,512,410 | 85,205 | 105,365 | ||||||||||||||||
Call - AUD versus USD | 0.85 | 04/29/15 | JPM | 3,473,582 | 65,590 | 81,108 | ||||||||||||||||
Call - EUR versus USD | 1.38 | 04/29/15 | CIT | 3,998,190 | 113,019 | 345,236 | ||||||||||||||||
Call - JPY versus USD | JPY 105.00 | 06/22/15 | CIT | 2,988,000 | 53,815 | 160,050 | ||||||||||||||||
Call - JPY versus USD | 105.00 | 06/22/15 | DUB | 5,976,000 | 107,631 | 320,101 | ||||||||||||||||
Call - JPY versus USD | 105.00 | 06/22/15 | GSC | 2,933,000 | 53,815 | 160,050 | ||||||||||||||||
Call - JPY versus USD | 110.00 | 06/22/15 | GSC | 3,557,000 | 61,785 | 91,927 | ||||||||||||||||
Call - EUR versus USD | $1.30 | 07/30/15 | CIT | 5,857,000 | 175,417 | 238,643 | ||||||||||||||||
Call - EUR versus USD | 1.35 | 07/30/15 | CIT | 5,857,000 | 168,330 | 390,521 | ||||||||||||||||
|
|
|
| |||||||||||||||||||
$1,285,176 | $2,240,542 | |||||||||||||||||||||
|
|
|
| |||||||||||||||||||
Options on Futures | ||||||||||||||||||||||
Description | Exercise Price | Expiration Date | Exchange | Number of Contracts | Cost | Value | ||||||||||||||||
Put - S&P E-Mini Index (03/15) | 1,900.00 | 03/20/15 | CME | 9 | $43,088 | $ 27,675 | ||||||||||||||||
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-83
PACIFIC LIFE FUNDS
PL GLOBAL ABSOLUTE RETURN FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Options on Indices
Description | Exercise Price | Expiration Date | Counter- Party | Number of Contracts | Cost | Value | ||||||||||||||||
Call - Nikkei 225 (05/16) | 16,000.00 | 05/13/16 | GSC | 28 | $242,382 | $363,791 | ||||||||||||||||
|
|
|
| |||||||||||||||||||
Put - KOSPI 200 (03/15) | 240.00 | 03/12/15 | CIT | 46 | 74,313 | 78,358 | ||||||||||||||||
Put - DAX (03/15) | 9,000.00 | 03/20/15 | GSC | 15 | 43,632 | 23,739 | ||||||||||||||||
Put - Hang Seng China Enterprise (03/15) | 9,800.00 | 03/30/15 | DUB | 26 | 43,809 | 56,923 | ||||||||||||||||
|
|
|
| |||||||||||||||||||
161,754 | 159,020 | |||||||||||||||||||||
|
|
|
| |||||||||||||||||||
$404,136 | $522,811 | |||||||||||||||||||||
|
|
|
| |||||||||||||||||||
Total Purchased Options | $1,732,400 | $2,791,028 | ||||||||||||||||||||
|
|
|
|
(j) | Transactions in written options for the six-month period ended September 30, 2014 were as follows: |
Notional Amount in $ | Premium | |||||||
Outstanding, March 31, 2014 | 10,791,867 | $196,345 | ||||||
Call Options Written | 21,752,190 | 894,118 | ||||||
Call Options Expired | (10,791,867 | ) | (196,345 | ) | ||||
|
|
|
| |||||
Outstanding, September 30, 2014 | 21,752,190 | $894,118 | ||||||
|
|
|
|
(k) | Premiums received and value of written options outstanding as of September 30, 2014 were as follows: |
Foreign Currency Options
Description | Exercise Price | Expiration Date | Counter- party | Notional Amount | Premium | Value | ||||||||||||||||
Call - EUR versus USD | $1.38 | 04/29/15 | CIT | $3,998,190 | $154,898 | ($345,236 | ) | |||||||||||||||
Call - JPY versus USD | JPY 105.00 | 06/22/15 | DUB | 5,976,000 | 222,307 | (321,581 | ) | |||||||||||||||
Call - JPY versus USD | 105.00 | 06/22/15 | GSC | 5,921,000 | 221,919 | (318,621 | ) | |||||||||||||||
Call - EUR versus USD | $1.35 | 07/30/15 | CIT | 5,857,000 | 294,994 | (390,521 | ) | |||||||||||||||
|
|
|
| |||||||||||||||||||
Total Written Options | $894,118 | ($1,375,959 | ) | |||||||||||||||||||
|
|
|
|
(l) | Swap agreements outstanding as of September 30, 2014 were as follows: |
Credit Default Swaps on Sovereign Issues – Buy Protection (1)
Referenced Obligation | Fixed Deal Pay Rate | Expiration Date | Counter- party | Implied Credit Spread at 09/30/14 (3) | Notional Amount (4) | Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||
Croatia Government | 1.000% | 12/20/16 | MSC | 1.508% | $198,000 | $2,147 | $10,568 | ($8,421 | ) | |||||||||||||||||||||
China Government | 1.000% | 12/20/17 | JPM | 0.466% | 3,100,000 | (53,653 | ) | (59,130 | ) | 5,477 | ||||||||||||||||||||
Croatia Government | 1.000% | 03/20/18 | CIT | 2.070% | 1,200,000 | 42,358 | 83,000 | (40,642 | ) | |||||||||||||||||||||
Thailand Government | 1.000% | 03/20/18 | CIT | 0.602% | 1,930,000 | (26,683 | ) | (9,603 | ) | (17,080 | ) | |||||||||||||||||||
Croatia Government | 1.000% | 03/20/18 | HSB | 2.070% | 313,000 | 11,046 | 29,014 | (17,968 | ) | |||||||||||||||||||||
Banque Centrale de Tunisie SA | 1.000% | 03/20/18 | JPM | 2.329% | 375,000 | 16,553 | 40,581 | (24,028 | ) | |||||||||||||||||||||
China Government | 1.000% | 03/20/18 | JPM | 0.528% | 1,100,000 | (18,092 | ) | (17,333 | ) | (759 | ) | |||||||||||||||||||
Croatia Government | 1.000% | 03/20/18 | MSC | 2.070% | 2,262,000 | 79,826 | 194,313 | (114,487 | ) | |||||||||||||||||||||
Lebanon Government | 5.000% | 03/20/18 | JPM | 2.923% | 689,000 | (47,911 | ) | (29,026 | ) | (18,885 | ) | |||||||||||||||||||
Croatia Government | 1.000% | 06/20/18 | CIT | 2.154% | 800,000 | 32,468 | 76,719 | (44,251 | ) | |||||||||||||||||||||
Lebanon Government | 1.000% | 06/20/18 | GSC | 3.027% | 5,166,000 | 363,042 | 715,241 | (352,199 | ) | |||||||||||||||||||||
Russia Foreign | 1.000% | 06/20/18 | JPM | 2.302% | 1,290,000 | 58,348 | 21,470 | 36,878 | ||||||||||||||||||||||
Croatia Government | 1.000% | 06/20/18 | MSC | 2.154% | 921,000 | 37,378 | 92,071 | (54,693 | ) | |||||||||||||||||||||
Bulgaria Government | 1.000% | 12/20/18 | GSC | 1.187% | 1,000,000 | 7,272 | 11,641 | (4,369 | ) | |||||||||||||||||||||
Qatar Government | 1.000% | 12/20/18 | JPM | 0.466% | 1,838,000 | (40,976 | ) | (31,386 | ) | (9,590 | ) | |||||||||||||||||||
Lebanon Government | 5.000% | 12/20/18 | GSC | 3.197% | 663,000 | (47,393 | ) | (39,103 | ) | (8,290 | ) | |||||||||||||||||||
Qatar Government | 1.000% | 03/20/19 | GSC | 0.503% | 490,000 | (10,753 | ) | (8,606 | ) | (2,147 | ) | |||||||||||||||||||
Qatar Government | 1.000% | 03/20/19 | JPM | 0.503% | 160,000 | (3,511 | ) | (3,076 | ) | (435 | ) | |||||||||||||||||||
Qatar Government | 1.000% | 06/20/19 | CIT | 0.536% | 1,210,000 | (26,066 | ) | (28,206 | ) | 2,140 | ||||||||||||||||||||
Qatar Government | 1.000% | 06/20/19 | JPM | 0.536% | 566,000 | (12,191 | ) | (11,003 | ) | (1,188 | ) | |||||||||||||||||||
Qatar Government | 1.000% | 06/20/19 | JPM | 0.536% | 240,000 | (5,170 | ) | (6,602 | ) | 1,432 | ||||||||||||||||||||
Poland Government | 1.000% | 09/20/19 | CIT | 0.664% | 817,000 | (13,383 | ) | (15,311 | ) | 1,928 | ||||||||||||||||||||
Poland Government | 1.000% | 09/20/19 | DUB | 0.664% | 902,000 | (14,775 | ) | (17,267 | ) | 2,492 | ||||||||||||||||||||
Colombia Government | 1.000% | 12/20/22 | CIT | 1.356% | 3,317,938 | 85,067 | 113,762 | (28,695 | ) | |||||||||||||||||||||
Qatar Government | 1.000% | 12/20/22 | GSC | 0.886% | 1,040,000 | (9,132 | ) | (11,099 | ) | 1,967 | ||||||||||||||||||||
Russia Foreign | 1.000% | 12/20/22 | GSC | 2.685% | 5,240,000 | 594,459 | 413,671 | 180,788 | ||||||||||||||||||||||
Mexico Government | 1.000% | 12/20/22 | HSB | 1.262% | 3,624,000 | 68,286 | 121,152 | (52,866 | ) |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-84
PACIFIC LIFE FUNDS
PL GLOBAL ABSOLUTE RETURN FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Referenced Obligation | Fixed Deal Pay Rate | Expiration Date | Counter- party | Implied Credit Spread at 09/30/14 (3) | Notional Amount (4) | Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||
South Africa Government | 1.000% | 12/20/22 | HSB | 2.348% | $22,560,000 | $2,108,694 | $1,985,816 | $122,878 | ||||||||||||||||||||||
Spain Government | 1.000% | 12/20/22 | HSB | 1.079% | 3,830,000 | 20,864 | 711,227 | (690,363 | ) | |||||||||||||||||||||
Qatar Government | 1.000% | 12/20/23 | GSC | 0.930% | 874,000 | (5,245 | ) | 284 | (5,529 | ) | ||||||||||||||||||||
Brazilian Government | 1.000% | 03/20/24 | GSC | 2.293% | 3,537,423 | 354,198 | 469,683 | (115,485 | ) | |||||||||||||||||||||
Qatar Government | 1.000% | 09/20/24 | GSC | 0.957% | 290,000 | (1,163 | ) | (622 | ) | (541 | ) | |||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
$3,545,909 | $4,802,840 | ($1,256,931 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
Credit Default Swaps on Sovereign Issues – Sell Protection (2)
Referenced Obligation | Fixed Deal Receive Rate | Expiration Date | Counter- party | Implied Credit Spread at 09/30/14 (3) | Notional Amount (4) | Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||
South Africa Government | 1.000% | 12/20/17 | HSB | 1.378% | $22,560,000 | ($260,997 | ) | ($463,220 | ) | $202,223 | ||||||||||||||||||||
Turkey Government | 1.000% | 09/20/18 | CIT | 1.717% | 2,980,000 | (80,148 | ) | (55,873 | ) | (24,275 | ) | |||||||||||||||||||
Turkey Government | 1.000% | 09/20/18 | GSC | 1.717% | 4,830,000 | (129,904 | ) | (91,425 | ) | (38,479 | ) | |||||||||||||||||||
Turkey Government | 1.000% | 09/20/18 | MSC | 1.717% | 5,157,031 | (138,700 | ) | (98,208 | ) | (40,492 | ) | |||||||||||||||||||
Turkey Government | 1.000% | 12/20/22 | GSC | 2.423% | 2,367,000 | (232,255 | ) | (156,301 | ) | (75,954 | ) | |||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
($842,004 | ) | ($865,027 | ) | $23,023 | ||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
$2,703,905 | $3,937,813 | ($1,233,908 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
(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 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 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. |
Cross Currency Swaps – Pay Floating Rate
Notional Amount (Currency | Notional Amount Received) | Floating Rate Index | Counter- party | Fixed Rate | Expiration Date | Value | Upfront Premiums Paid (Received) | Unrealized Appreciation | ||||||||||||||||||||||||
TRY 4,247,000 | $1,993,897 | 3-Month USD LIBOR | JPM | 10.757% | 04/08/16 | $201,864 | $— | $201,864 | ||||||||||||||||||||||||
|
|
|
|
|
|
Cross Currency Swaps – Receive Floating Rate
Notional Amount (Currency | Notional Amount Delivered) | Floating Rate Index | Counter- party | Fixed Rate | Expiration Date | Value | Upfront Premiums Paid (Received) | Unrealized Appreciation | ||||||||||||||||||||||||
TRY 11,627,055 | $6,521,062 | 3-Month USD LIBOR | MSC | 5.370% | 04/01/20 | $2,210,851 | $— | $2,210,851 | ||||||||||||||||||||||||
2,145,966 | 1,120,609 | 3-Month USD LIBOR | JPM | 7.860% | 07/21/21 | 253,296 | — | 253,296 | ||||||||||||||||||||||||
1,169,919 | 611,243 | 3-Month USD LIBOR | HSB | 7.850% | 02/23/22 | 125,753 | — | 125,753 | ||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||
$2,589,900 | $— | $2,589,900 | ||||||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||
$2,791,764 | $— | $2,791,764 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-85
PACIFIC LIFE FUNDS
PL GLOBAL ABSOLUTE RETURN FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
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) | ||||||||||||||||||||
3-Month MYR KLIBOR | GSC | Pay | 3.465% | 01/13/16 | MYR 16,501,000 | ($19,810 | ) | $— | ($19,810 | ) | ||||||||||||||||||
3-Month MYR KLIBOR | CIT | Pay | 3.505% | 01/15/16 | 16,500,000 | (16,997 | ) | — | (16,997 | ) | ||||||||||||||||||
3-Month MYR KLIBOR | CIT | Pay | 3.600% | 02/25/16 | 5,582,000 | (3,934 | ) | — | (3,934 | ) | ||||||||||||||||||
3-Month MYR KLIBOR | JPM | Pay | 3.600% | 02/25/16 | 5,418,000 | (3,818 | ) | — | (3,818 | ) | ||||||||||||||||||
3-Month MYR KLIBOR | JPM | Pay | 3.600% | 02/26/16 | 22,001,000 | (15,618 | ) | — | (15,618 | ) | ||||||||||||||||||
3-Month MYR KLIBOR | GSC | Pay | 3.780% | 07/30/16 | 5,915,000 | 540 | — | 540 | ||||||||||||||||||||
3-Month NZD Bank Bills | JPM | Pay | 4.695% | 10/08/16 | NZD 2,705,000 | 7,013 | — | 7,013 | ||||||||||||||||||||
Brazil CETIP Interbank | DUB | Pay | 11.807% | 01/02/17 | BRL 32,497,276 | (78,541 | ) | — | (78,541 | ) | ||||||||||||||||||
Brazil CETIP Interbank | DUB | Pay | 12.190% | 01/02/17 | 9,289,725 | — | — | — | ||||||||||||||||||||
6-Month PLN-WIBOR | HSB | Receive | 3.356% | 12/12/17 | PLN 6,880,000 | (115,603 | ) | — | (115,603 | ) | ||||||||||||||||||
6-Month PLN-WIBOR | HSB | Pay | 3.430% | 12/12/17 | 60,000,000 | 1,060,033 | — | 1,060,033 | ||||||||||||||||||||
6-Month PLN-WIBOR | HSB | Receive | 3.620% | 12/12/17 | 13,000,000 | (258,526 | ) | — | (258,526 | ) | ||||||||||||||||||
6-Month CLP-CLICP | DUB | Pay | 1.000% | 08/07/18 | CLP 2,000,410,953 | 17,172 | — | 17,172 | ||||||||||||||||||||
6-Month CLP-CLICP | DUB | Receive | 3.704% | 08/07/18 | 2,120,579,120 | 21,421 | — | 21,421 | ||||||||||||||||||||
6-Month CLP-CLICP | DUB | Pay | 0.950% | 08/08/18 | 1,550,756,235 | 8,118 | — | 8,118 | ||||||||||||||||||||
6-Month CLP-CLICP | DUB | Receive | 3.603% | 08/08/18 | 1,610,651,000 | 26,554 | — | 26,554 | ||||||||||||||||||||
3-Month NZD Bank Bills | JPM | Pay | 4.060% | 06/04/23 | NZD 810,000 | (14,880 | ) | — | (14,880 | ) | ||||||||||||||||||
3-Month MYR KLIBOR | GSC | Receive | 4.525% | 01/13/24 | MYR 4,021,000 | (19,051 | ) | — | (19,051 | ) | ||||||||||||||||||
3-Month MYR KLIBOR | CIT | Receive | 4.575% | 01/15/24 | 4,021,000 | (23,787 | ) | — | (23,787 | ) | ||||||||||||||||||
3-Month MYR KLIBOR | JPM | Receive | 4.560% | 02/25/24 | 1,331,000 | (6,811 | ) | — | (6,811 | ) | ||||||||||||||||||
3-Month MYR KLIBOR | CIT | Receive | 4.568% | 02/25/24 | 1,349,000 | (7,146 | ) | — | (7,146 | ) | ||||||||||||||||||
3-Month MYR KLIBOR | JPM | Receive | 4.565% | 02/26/24 | 5,361,000 | (28,004 | ) | — | (28,004 | ) | ||||||||||||||||||
3-Month MYR KLIBOR | GSC | Receive | 4.380% | 07/30/24 | 1,911,000 | (1,072 | ) | — | (1,072 | ) | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||
527,253 | — | 527,253 | ||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||
Exchange | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
3-Month SEK STIBOR | LCH | Pay | 0.700% | 09/21/16 | SEK 245,297,000 | (4,765 | ) | — | (4,765 | ) | ||||||||||||||||||
3-Month SEK STIBOR | LCH | Pay | 0.760% | 09/21/16 | 701,233,000 | 2,083 | — | 2,083 | ||||||||||||||||||||
3-Month SEK STIBOR | LCH | Pay | 0.765% | 09/21/16 | 153,313,000 | 742 | — | 742 | ||||||||||||||||||||
3-Month SEK STIBOR | LCH | Pay | 0.770% | 09/21/16 | 241,295,000 | 1,618 | — | 1,618 | ||||||||||||||||||||
3-Month SEK STIBOR | LCH | Pay | 0.810% | 09/21/16 | 153,313,000 | 3,317 | — | 3,317 | ||||||||||||||||||||
3-Month SEK STIBOR | LCH | Pay | 0.889% | 09/21/16 | 306,626,000 | 15,647 | — | 15,647 | ||||||||||||||||||||
3-Month SEK STIBOR | LCH | Pay | 0.890% | 09/21/16 | 153,313,000 | 7,895 | — | 7,895 | ||||||||||||||||||||
3-Month NOK NIBOR | LCH | Receive | 1.710% | 09/21/16 | NOK 224,657,000 | (1,228 | ) | — | (1,228 | ) | ||||||||||||||||||
3-Month NOK NIBOR | LCH | Receive | 1.715% | 09/21/16 | 224,656,000 | (1,689 | ) | — | (1,689 | ) | ||||||||||||||||||
3-Month NOK NIBOR | LCH | Receive | 1.775% | 09/21/16 | 227,000,000 | (7,284 | ) | — | (7,284 | ) | ||||||||||||||||||
3-Month NOK NIBOR | LCH | Receive | 1.810% | 09/21/16 | 141,875,000 | (6,586 | ) | — | (6,586 | ) | ||||||||||||||||||
3-Month NOK NIBOR | LCH | Receive | 1.816% | 09/21/16 | 283,750,000 | (13,899 | ) | — | (13,899 | ) | ||||||||||||||||||
3-Month NOK NIBOR | LCH | Receive | 1.820% | 09/21/16 | 283,750,000 | (14,335 | ) | — | (14,335 | ) | ||||||||||||||||||
3-Month NOK NIBOR | LCH | Receive | 1.835% | 09/21/16 | 141,875,000 | (8,039 | ) | — | (8,039 | ) | ||||||||||||||||||
3-Month NOK NIBOR | LCH | Receive | 1.840% | 09/21/16 | 141,875,000 | (8,330 | ) | — | (8,330 | ) | ||||||||||||||||||
3-Month NOK NIBOR | LCH | Receive | 1.880% | 09/21/16 | 141,875,000 | (10,654 | ) | — | (10,654 | ) | ||||||||||||||||||
3-Month NZD Bank Bills | LCH | Pay | 4.711% | 10/08/16 | NZD 12,000,000 | 34,578 | — | 34,578 | ||||||||||||||||||||
3-Month NZD Bank Bills | LCH | Pay | 4.764% | 10/10/16 | 13,000,000 | 41,870 | — | 41,870 | ||||||||||||||||||||
3-Month NZD Bank Bills | LCH | Pay | 4.261% | 07/31/17 | 5,205,000 | 11,117 | — | 11,117 | ||||||||||||||||||||
3-Month NZD Bank Bills | LCH | Pay | 4.213% | 10/23/17 | 583,000 | 5,233 | — | 5,233 | ||||||||||||||||||||
3-Month NZD Bank Bills | LCH | Pay | 4.203% | 10/24/17 | 1,000,000 | 8,738 | 4 | 8,734 | ||||||||||||||||||||
3-Month NZD Bank Bills | LCH | Pay | 4.150% | 10/25/17 | 1,000,000 | 7,298 | 3 | 7,295 | ||||||||||||||||||||
3-Month NZD Bank Bills | LCH | Pay | 4.036% | 10/30/17 | 2,000,000 | 8,541 | — | 8,541 | ||||||||||||||||||||
3-Month NZD Bank Bills | LCH | Pay | 4.035% | 10/31/17 | 1,417,000 | (12,386 | ) | 4 | (12,390 | ) | ||||||||||||||||||
6-Month HUF BUBOR | LCH | Receive | 4.566% | 11/14/18 | HUF 288,000,000 | (115,087 | ) | — | (115,087 | ) | ||||||||||||||||||
6-Month HUF BUBOR | LCH | Receive | 3.778% | 11/15/18 | 483,000,000 | (116,405 | ) | — | (116,405 | ) | ||||||||||||||||||
6-Month GBP LIBOR | LCH | Receive | 2.000% | 02/20/19 | GBP 2,440,000 | (24,204 | ) | — | (24,204 | ) | ||||||||||||||||||
6-Month HUF BUBOR | LCH | Receive | 3.690% | 05/15/19 | HUF 1,400,792,000 | (217,118 | ) | — | (217,118 | ) | ||||||||||||||||||
6-Month GBP LIBOR | LCH | Receive | 2.158% | 07/10/19 | GBP 487,000 | (9,378 | ) | — | (9,378 | ) | ||||||||||||||||||
3-Month NZD Bank Bills | LCH | Pay | 4.960% | 04/29/24 | NZD 5,271,000 | 188,528 | — | 188,528 | ||||||||||||||||||||
6-Month JPY LIBOR | LCH | Receive | 0.753% | 06/12/24 | JPY 266,080,000 | (32,914 | ) | — | (32,914 | ) | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||
(267,096 | ) | 11 | (267,107 | ) | ||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||
$260,157 | $11 | $260,146 | ||||||||||||||||||||||||||
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-86
PACIFIC LIFE FUNDS
PL GLOBAL ABSOLUTE RETURN FUND
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
Total Return Swaps
Receive Total Return | Pay | Counter- party | Expiration Date | Notional Amount | Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | |||||||||||||||||
Sri Lanka Government Bonds | 3-Month USD-LIBOR + 100 bps | CIT | 06/17/15 | LKR 68,840,000 | $12,490 | ($1,970 | ) | $14,460 | ||||||||||||||||
Sri Lanka Government Bonds | 3-Month USD-LIBOR + 100 bps | CIT | 11/17/18 | 68,850,000 | 14,592 | — | 14,592 | |||||||||||||||||
Number of Contracts | ||||||||||||||||||||||||
Negative return on WIG20 Index | Positive return on WIG20 Index | JPM | 12/20/14 | 120 | (14,859 | ) | — | (14,859 | ) | |||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
$12,223 | ($1,970 | ) | $14,193 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total Swap Agreements | $5,768,049 | $3,935,854 | $1,832,195 | |||||||||||||||||||||
|
|
|
|
|
|
(m) | As of September 30, 2014, investments with a total aggregate value of $1,299,996 were fully or partially segregated with the broker(s)/custodian as collateral for open futures contracts, forward foreign currency contracts, option contracts and swap agreements. |
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-87
PACIFIC LIFE FUNDS
PL GLOBAL ABSOLUTE RETURN FUND
Schedule of Investments (Continued)
September 30, 2014 (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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Common Stocks (1) | $2,225,153 | $— | $2,225,153 | $— | |||||||||||||
Closed-End Mutual Fund | 1,376,617 | — | 1,376,617 | — | ||||||||||||||
Corporate Bonds & Notes | 869,969 | — | 869,969 | — | ||||||||||||||
Senior Loan Notes | 259,517 | — | 259,517 | — | ||||||||||||||
Mortgage-Backed Securities | 2,796,234 | — | 2,796,234 | — | ||||||||||||||
Foreign Government Bonds & Notes | 104,461,190 | — | 103,350,323 | 1,110,867 | ||||||||||||||
Short-Term Investments | 61,707,679 | 22,422,380 | 39,285,299 | — | ||||||||||||||
Unfunded Loan Commitment | 1,473 | — | 1,473 | — | ||||||||||||||
Derivatives: | ||||||||||||||||||
Credit Contracts | ||||||||||||||||||
Swaps | 3,882,006 | — | 3,882,006 | — | ||||||||||||||
Equity Contracts | ||||||||||||||||||
Futures | 110,065 | 110,065 | — | — | ||||||||||||||
Purchased Options | 550,486 | 108,337 | 442,149 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Equity Contracts | 660,551 | 218,402 | 442,149 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Forward Foreign Currency Contracts | 7,095,852 | — | 7,095,852 | — | ||||||||||||||
Purchased Options | 2,240,542 | — | 2,240,542 | — | ||||||||||||||
Swaps | 2,791,764 | — | 2,791,764 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Foreign Currency Contracts | 12,128,158 | — | 12,128,158 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Interest Rate Contracts | ||||||||||||||||||
Futures | 162,405 | 162,405 | — | — | ||||||||||||||
Swaps | 1,505,138 | — | 1,505,138 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Interest Rate Contracts | 1,667,543 | 162,405 | 1,505,138 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Assets - Derivatives | 18,338,258 | 380,807 | 17,957,451 | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Assets | 192,036,090 | 22,803,187 | 168,122,036 | 1,110,867 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Liabilities | Securities Sold Short: | |||||||||||||||||
Foreign Government Bonds & Notes | (1,452,324 | ) | — | (1,452,324 | ) | — | ||||||||||||
Derivatives: | ||||||||||||||||||
Credit Contracts | ||||||||||||||||||
Swaps | (1,178,101 | ) | — | (1,178,101 | ) | — | ||||||||||||
Equity Contracts | ||||||||||||||||||
Futures | (79,674 | ) | (79,674 | ) | — | — | ||||||||||||
Swaps | (14,859 | ) | — | (14,859 | ) | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Equity Contracts | (94,533 | ) | (79,674 | ) | (14,859 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
Foreign Currency Contracts | ||||||||||||||||||
Forward Foreign Currency Contracts | (2,668,776 | ) | — | (2,668,776 | ) | — | ||||||||||||
Written Options | (1,375,959 | ) | — | (1,375,959 | ) | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Foreign Currency Contracts | (4,044,735 | ) | — | (4,044,735 | ) | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Interest Rate Contracts | ||||||||||||||||||
Futures | (116,539 | ) | (116,539 | ) | — | — | ||||||||||||
Swaps | (1,217,899 | ) | — | (1,217,899 | ) | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Interest Rate Contracts | (1,334,438 | ) | (116,539 | ) | (1,217,899 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities - Derivatives | (6,651,807 | ) | (196,213 | ) | (6,455,594 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities | (8,104,131 | ) | (196,213 | ) | (7,907,918 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $183,931,959 | $22,606,974 | $160,214,118 | $1,110,867 | ||||||||||||||
|
|
|
|
|
|
|
|
(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-91 |
A-88
PACIFIC LIFE FUNDS
PL PRECIOUS METALS FUND
Schedule of Investments
September 30, 2014 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS - 93.7% | ||||||||
Australia - 3.4% | ||||||||
Newcrest Mining Ltd * | 87,190 | $800,889 | ||||||
Regis Resources Ltd | 360,745 | 488,966 | ||||||
|
| |||||||
1,289,855 | ||||||||
|
| |||||||
Bermuda - 1.0% | ||||||||
Continental Gold Ltd * | 140,150 | 362,905 | ||||||
|
| |||||||
Canada - 66.4% | ||||||||
Agnico Eagle Mines Ltd | 79,889 | 2,317,420 | ||||||
Alamos Gold Inc | 154,583 | 1,232,578 | ||||||
Aureus Mining Inc * | 646,000 | 227,561 | ||||||
AuRico Gold Inc | 110,000 | 384,035 | ||||||
B2Gold Corp * | 450,000 | 916,112 | ||||||
Barrick Gold Corp | 50,643 | 742,426 | ||||||
Centerra Gold Inc | 135,938 | 609,321 | ||||||
Detour Gold Corp * | 74,451 | 583,669 | ||||||
Eldorado Gold Corp | 360,601 | 2,430,946 | ||||||
First Quantum Minerals Ltd | 2,489 | 48,049 | ||||||
Franco-Nevada Corp | 37,553 | 1,843,197 | ||||||
Goldcorp Inc | 157,804 | 3,634,226 | ||||||
Kinross Gold Corp * | 440,932 | 1,464,590 | ||||||
MAG Silver Corp * | 68,430 | 508,971 | ||||||
New Gold Inc * | 130,557 | 660,974 | ||||||
Osisko Gold Royalties Ltd * | 40,476 | 512,478 | ||||||
Platinum Group Metals Ltd * | 474,000 | 419,001 | ||||||
Primero Mining Corp * | 56,521 | 275,048 | ||||||
Rio Alto Mining Ltd * | 90,710 | 216,256 | ||||||
SEMAFO Inc * | 230,249 | 810,019 | ||||||
Silver Wheaton Corp | 66,754 | 1,330,407 | ||||||
Tahoe Resources Inc * | 83,459 | 1,698,317 | ||||||
Torex Gold Resources Inc * | 600,392 | 788,050 | ||||||
Yamana Gold Inc | 256,524 | 1,539,213 | ||||||
|
| |||||||
25,192,864 | ||||||||
|
| |||||||
Peru - 0.5% | ||||||||
Cia de Minas Buenaventura SA ADR | 16,754 | 194,011 | ||||||
|
| |||||||
South Africa - 0.6% | ||||||||
AngloGold Ashanti Ltd ADR * | 6,457 | 77,484 | ||||||
Impala Platinum Holdings Ltd * | 20,972 | 161,253 | ||||||
|
| |||||||
238,737 | ||||||||
|
| |||||||
United Kingdom - 14.3% | ||||||||
Fresnillo PLC | 126,285 | 1,550,239 | ||||||
Hochschild Mining PLC * | 62,124 | 136,015 | ||||||
Randgold Resources Ltd ADR | 55,042 | 3,720,289 | ||||||
|
| |||||||
5,406,543 | ||||||||
|
| |||||||
United States - 7.5% | ||||||||
Newmont Mining Corp | 24,921 | 574,429 | ||||||
Royal Gold Inc | 35,017 | 2,274,004 | ||||||
|
| |||||||
2,848,433 | ||||||||
|
| |||||||
Total Common Stocks | 35,533,348 | |||||||
|
|
Shares | Value | |||||||
SHORT-TERM INVESTMENT - 5.2% | ||||||||
Money Market Fund - 5.2% | ||||||||
BlackRock Liquidity Funds Treasury | 1,962,774 | $1,962,774 | ||||||
|
| |||||||
Total Short-Term Investment | 1,962,774 | |||||||
|
| |||||||
TOTAL INVESTMENTS - 98.9% | 37,496,122 | |||||||
OTHER ASSETS & LIABILITIES, NET - 1.1% | 429,052 | |||||||
|
| |||||||
NET ASSETS - 100.0% | $37,925,174 | |||||||
|
|
Notes to Schedule of Investments
(a) | As of September 30, 2014, the fund was diversified by precious metals sector as a percentage of net assets as follows: |
Gold | 78.3% | |||
Precious Metals & Minerals | 10.1% | |||
Silver | 5.2% | |||
Others (each less than 3.0%) | 0.1% | |||
|
| |||
93.7% | ||||
Short-Term Investment | 5.2% | |||
Other Assets & Liabilities, Net | 1.1% | |||
|
| |||
100.0% | ||||
|
|
(b) | As of September 30, 2014, the fund was diversified by geographical region as a percentage of net assets as follows: |
Canada | 66.4% | |||
United Kingdom | 14.3% | |||
United States (Includes Short-Term Investment) | 12.7% | |||
Australia | 3.4% | |||
Others (each less than 3.0%) | 2.1% | |||
|
| |||
98.9% | ||||
Other Assets & Liabilities, Net | 1.1% | |||
|
| |||
100.0% | ||||
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-89
PACIFIC LIFE FUNDS
PL PRECIOUS METALS FUND
Schedule of Investments (Continued)
September 30, 2014 (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, 2014:
Total Value at September 30, 2014 | Level 1 Quoted Price | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |||||||||||||||
Assets | Common Stocks | |||||||||||||||||
Australia | $1,289,855 | $— | $1,289,855 | $— | ||||||||||||||
Bermuda | 362,905 | 362,905 | — | — | ||||||||||||||
Canada | 25,192,864 | 24,965,303 | 227,561 | — | ||||||||||||||
Peru | 194,011 | 194,011 | — | — | ||||||||||||||
South Africa | 238,737 | 77,484 | 161,253 | — | ||||||||||||||
United Kingdom | 5,406,543 | 3,720,289 | 1,686,254 | — | ||||||||||||||
United States | 2,848,433 | 2,848,433 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
35,533,348 | 32,168,425 | 3,364,923 | — | |||||||||||||||
Short-Term Investment | 1,962,774 | 1,962,774 | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $37,496,122 | $34,131,199 | $3,364,923 | $— | ||||||||||||||
|
|
|
|
|
|
|
|
See Notes to Financial Statements | See explanation of symbols and terms, if any, on page A-91 |
A-90
PACIFIC LIFE FUNDS
Schedule of Investments (Continued)
Explanation of Symbols and Terms
September 30, 2014 (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, 2014. For Senior Loan Notes, the rate shown may represent a weighted average interest rate. | |
W | Investments were in default as of September 30, 2014. | |
± | 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 of the 1933 Act and may only be sold to “qualified institutional buyers”, or (2) the securities comply with Regulation S rules governing offers and sales made outside the United States without registration under the 1933 Act and contain certain restrictions as to public resale. | |
‡ | Investments were fully or partially segregated with the broker(s)/custodian as collateral for securities sold short, futures contracts, options contracts, swap agreements and/or forward foreign currency contracts, if any, as of September 30, 2014. | |
+ | The values of these investments were determined by the Trustee Valuation Committee or determined by a valuation committee established under the Valuation Policy and then subsequently submitted for approval or ratification to either the Trustee Valuation Committee, or to the Board of Trustees (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). | |
l | Total shares owned by the fund as of September 30, 2014 were less than one share. | |
Counterparty & Exchange Abbreviations: | ||
ANZ | Australia and New Zealand Banking Group | |
BNP | BNP Paribas | |
BOA | Bank of America | |
BRC | Barclays | |
CIB | Canadian Imperial Bank of Commerce | |
CIT | Citigroup | |
CME | Chicago Mercantile Exchange | |
CSF | Credit Suisse | |
DUB | Deutsche Bank | |
EUX | Eurex Exchange | |
GSC | Goldman Sachs | |
HSB | HSBC | |
ICE | Intercontinental Exchange Inc | |
ING | ING Groep NV | |
JPM | JPMorgan Chase | |
LCH | London Clearing House | |
MER | Merrill Lynch | |
MSC | Morgan Stanley | |
RBC | Royal Bank of Canada | |
RBS | Royal Bank of Scotland | |
SCB | Standard Chartered Bank | |
SEB | Skandinaviska Enskilda Banken | |
SGN | Societe Generale | |
SSB | State Street Bank | |
UBS | UBS | |
WBC | Westpac Banking Group |
Note:
The countries listed in the Schedules of Investments are based on country of incorporation.
Currency Abbreviations: | ||
AED | United Arab Emirates Dirham | |
ARS | Argentine Peso | |
AUD | Australian Dollar | |
BRL | Brazilian Real | |
CAD | Canadian Dollar | |
CHF | Swiss Franc | |
CLP | Chilean Peso | |
CNH | Renminbi Offshore (Hong Kong) | |
CNY | Chinese Renminbi | |
COP | Colombian Peso | |
CZK | Czech Koruna | |
DOP | Dominican Peso | |
EUR | Euro | |
GBP | British Pound | |
HKD | Hong Kong Dollar | |
HUF | Hungarian Forint | |
IDR | Indonesian Rupiah | |
ILS | Israeli Shekel | |
INR | Indian Rupee | |
JOD | Jordanian Dinar | |
JPY | Japanese Yen | |
KES | Kenyan Shilling | |
KRW | Korean Won | |
KZT | Kazakhstani Tenge | |
LBP | Lebanese Pound | |
LKR | Sri Lankan Rupee | |
MXN | Mexican Peso | |
MYR | Malaysian Ringgit | |
NGN | Nigerian Naira | |
NOK | Norwegian Krone | |
NZD | New Zealand Dollar | |
PEN | Peruvian Nuevo Sol | |
PHP | Philippine Peso | |
PLN | Polish Zloty | |
RON | Romanian Leu | |
RSD | Serbian Dinar | |
RUB | Russian Ruble | |
SEK | Swedish Krona | |
SGD | Singapore Dollar | |
THB | Thai Baht | |
TRY | Turkish Lira | |
TWD | Taiwan Dollar | |
UGX | Ugandan Shilling | |
USD | United States Dollar | |
UYU | Uruguayan Peso | |
ZAR | South African Rand | |
Index Abbreviations: | ||
ABX HE | Asset-Backed Securities Index - Home Equity | |
CDX EM | Credit Derivatives Index - Emerging Markets | |
CDX HY | Credit Derivatives Index - High Yield | |
CDX IG | Credit Derivatives Index - Investment Grade | |
iTraxx Europe | International Index - Europe Main | |
Other Abbreviations: | ||
ADR | American Depositary Receipt | |
GDR | Global Depositary Receipt | |
IO | Interest Only | |
‘NY’ | New York Shares | |
OTC | Over the Counter | |
REIT | Real Estate Investment Trust |
See Notes to Financial Statements |
A-91
PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2014 (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 and repurchase agreements, at cost | $132,004,921 | $182,033,646 | $839,951,109 | $247,145,186 | $166,658,727 | $166,716,522 | ||||||||||||||||||||||
Investments, at value | $130,003,657 | $167,052,466 | $804,616,737 | $247,470,190 | $161,870,028 | $266,934,392 | ||||||||||||||||||||||
Repurchase agreements, at value | — | 9,800,000 | 36,600,000 | — | — | — | ||||||||||||||||||||||
Cash (1) | — | 110,000 | 2,112,010 | — | — | — | ||||||||||||||||||||||
Foreign currency held, at value (2) | — | 300,930 | 921,426 | — | 454,592 | 174 | ||||||||||||||||||||||
Receivables: | ||||||||||||||||||||||||||||
Dividends and interest | 888,140 | 678,643 | 3,194,799 | 1,290,607 | 2,258,664 | 370,213 | ||||||||||||||||||||||
Fund shares sold | 72,499 | 116,829 | 199,564 | 181,390 | 159,404 | — | ||||||||||||||||||||||
Securities sold | 1,004,441 | 7,325,365 | 32,359,678 | — | 325,509 | — | ||||||||||||||||||||||
Securities sold short | — | — | 1,048,828 | — | — | — | ||||||||||||||||||||||
Swap agreements | — | — | 1,606 | — | — | — | ||||||||||||||||||||||
Variation Margin | — | 8,035 | 360,948 | — | — | — | ||||||||||||||||||||||
Foreign tax reclaim | — | — | — | — | — | 49,026 | ||||||||||||||||||||||
Due from adviser | 12,644 | 11,294 | 36,111 | 16,456 | 17,076 | 14,967 | ||||||||||||||||||||||
Forward foreign currency contracts appreciation | — | 2,176,233 | 4,533,561 | 22,512 | 2,123,244 | 450,558 | ||||||||||||||||||||||
Unfunded loan commitment appreciation | 73 | — | — | — | — | — | ||||||||||||||||||||||
Prepaid expenses and other assets | 756 | 1,106 | 3,809 | 1,616 | 749 | 1,882 | ||||||||||||||||||||||
Swap agreements, at value | — | 107,446 | 969,335 | — | 3,224,739 | — | ||||||||||||||||||||||
Total Assets | 131,982,210 | 187,688,347 | 886,958,412 | 248,982,771 | 170,434,005 | 267,821,212 | ||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||||||
Securities purchased | 3,153,564 | 1,758,214 | 221,562,118 | 1,018,849 | 3,986,495 | 448,049 | ||||||||||||||||||||||
Sale-buyback financing transactions | — | 52,021,098 | — | — | — | — | ||||||||||||||||||||||
Securities sold short, at value (proceeds $1,048,828) | — | — | 1,050,859 | — | — | — | ||||||||||||||||||||||
Swap agreements | — | 298 | — | — | — | — | ||||||||||||||||||||||
Due to brokers (3) | — | 1,111,000 | 4,408,018 | — | — | — | ||||||||||||||||||||||
Accrued advisory fees | 68,831 | 52,966 | 215,089 | 81,295 | 104,936 | 164,041 | ||||||||||||||||||||||
Accrued administration fees | 15,884 | 19,862 | 80,658 | 30,486 | 20,051 | 33,478 | ||||||||||||||||||||||
Accrued support service expenses | 220 | 530 | 976 | — | 429 | 498 | ||||||||||||||||||||||
Accrued custodian fees and expenses | 6,240 | 3,978 | 9,815 | 2,073 | 13,193 | 2,625 | ||||||||||||||||||||||
Accrued transfer agency out-of-pocket expenses | 1,863 | 2,893 | 9,092 | 3,226 | 2,034 | 4,552 | ||||||||||||||||||||||
Accrued legal, audit and tax service fees | 7,899 | 11,860 | 38,358 | 13,606 | 8,131 | 19,616 | ||||||||||||||||||||||
Accrued trustees’ fees and expenses and deferred compensation | 427 | 1,954 | 9,024 | 1,068 | — | 3,057 | ||||||||||||||||||||||
Accrued other | 19,889 | 9,591 | 37,231 | 27,328 | 11,755 | 15,142 | ||||||||||||||||||||||
Forward foreign currency contracts depreciation | — | 805,066 | 698,254 | 16,423 | 2,101,601 | — | ||||||||||||||||||||||
Outstanding options written, at value (premiums received $131,979 and $604,146) | — | 70,369 | 448,033 | — | — | — | ||||||||||||||||||||||
Swap agreements, at value | — | 808,999 | 843,871 | — | 66,242 | — | ||||||||||||||||||||||
Total Liabilities | 3,274,817 | 56,678,678 | 229,411,396 | 1,194,354 | 6,314,867 | 691,058 | ||||||||||||||||||||||
NET ASSETS | $128,707,393 | $131,009,669 | $657,547,016 | $247,788,417 | $164,119,138 | $267,130,154 | ||||||||||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||||||||||||||
Paid-in capital | $127,370,232 | $137,384,086 | $641,318,799 | $246,464,591 | $167,816,761 | $149,077,719 | ||||||||||||||||||||||
Undistributed net investment income | 3,288,773 | 2,460,356 | 4,429,728 | 2,048,322 | 4,723,437 | 3,325,419 | ||||||||||||||||||||||
Undistributed/accumulated net realized gain (loss) | 49,579 | (3,690,925 | ) | 8,298,738 | (1,053,677 | ) | (3,286,508 | ) | 14,061,112 | |||||||||||||||||||
Net unrealized appreciation (depreciation) on investments | (2,001,191 | ) | (5,143,848 | ) | 3,499,751 | 329,181 | (5,134,552 | ) | 100,665,904 | |||||||||||||||||||
NET ASSETS | $128,707,393 | $131,009,669 | $657,547,016 | $247,788,417 | $164,119,138 | $267,130,154 | ||||||||||||||||||||||
Class P Shares: | ||||||||||||||||||||||||||||
Shares of beneficial interest outstanding | 12,781,673 | 14,562,756 | 59,750,650 | 24,566,640 | 16,825,478 | 14,407,528 | ||||||||||||||||||||||
Net Asset Value Per Share | $10.07 | $9.00 | $11.00 | $10.09 | $9.75 | $18.54 |
(1) | Includes cash collateral segregated for certain derivative instruments (see Notes to Schedule of Investments) in the PL Inflation Managed and PL Managed Bond Funds of $110,000 and $2,112,010, respectively. |
(2) | The cost of foreign currency for the PL Inflation Managed, PL Managed Bond, PL Emerging Markets Debt and PL Comstock Funds was $302,677, $931,816, $456,940 and $179, 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). |
See Notes to Financial Statements
B-1
PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
SEPTEMBER 30, 2014 (Unaudited)
PL Growth 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 | $111,019,251 | $155,890,285 | $210,536,502 | $188,866,309 | $182,235,032 | $77,658,474 | ||||||||||||||||||||||
Investments, at value | $133,052,406 | $184,473,174 | $342,776,206 | $253,607,178 | $202,849,775 | $82,733,553 | ||||||||||||||||||||||
Cash (1) | — | — | — | — | — | 142,485 | ||||||||||||||||||||||
Foreign currency held, at value (2) | — | 9 | — | — | — | — | ||||||||||||||||||||||
Receivables: | ||||||||||||||||||||||||||||
Dividends and interest | 89,509 | 86,980 | 581,587 | 394,230 | 145,739 | 44,336 | ||||||||||||||||||||||
Fund shares sold | — | — | 96,289 | — | — | — | ||||||||||||||||||||||
Securities sold | 1,595,817 | 4,418,044 | — | 120,311 | 3,508,376 | 83,924 | ||||||||||||||||||||||
Foreign tax reclaim | 1,826 | 749 | 55,324 | 14,420 | — | 3,643 | ||||||||||||||||||||||
Due from adviser | 4,114 | 9,718 | 18,065 | 12,518 | 8,197 | 4,828 | ||||||||||||||||||||||
Forward foreign currency contracts appreciation | — | 44,002 | — | — | — | — | ||||||||||||||||||||||
Prepaid expenses and other assets | 568 | 1,060 | 2,305 | 1,569 | 1,012 | 529 | ||||||||||||||||||||||
Total Assets | 134,744,240 | 189,033,736 | 343,529,776 | 254,150,226 | 206,513,099 | 83,013,298 | ||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||||||
Securities purchased | 1,381,505 | 2,765,149 | 911,111 | 1,218,705 | 2,905,849 | 572,983 | ||||||||||||||||||||||
Due to custodian | — | 10,418 | — | — | — | — | ||||||||||||||||||||||
Accrued advisory fees | 61,046 | 108,987 | 185,558 | 94,891 | 112,056 | 45,294 | ||||||||||||||||||||||
Accrued administration fees | 16,649 | 23,189 | 42,821 | 31,630 | 25,859 | 10,452 | ||||||||||||||||||||||
Accrued support service expenses | 169 | 216 | 466 | 649 | 94 | 153 | ||||||||||||||||||||||
Accrued custodian fees and expenses | 998 | 2,778 | 2,407 | 2,901 | 1,085 | 779 | ||||||||||||||||||||||
Accrued transfer agency out-of-pocket expenses | 1,435 | 2,642 | 5,567 | 3,892 | 2,413 | 1,289 | ||||||||||||||||||||||
Accrued legal, audit and tax service fees | 5,911 | 10,763 | 23,658 | 16,864 | 10,123 | 5,553 | ||||||||||||||||||||||
Accrued trustees’ fees and expenses and deferred compensation | 2,669 | 6,679 | 5,005 | 925 | 596 | 2,811 | ||||||||||||||||||||||
Accrued other | 9,800 | 10,320 | 17,887 | 12,338 | 9,407 | 5,503 | ||||||||||||||||||||||
Outstanding options written, at value (premiums received $4,366) | — | — | — | — | — | 3,422 | ||||||||||||||||||||||
Total Liabilities | 1,480,182 | 2,941,141 | 1,194,480 | 1,382,795 | 3,067,482 | 648,239 | ||||||||||||||||||||||
NET ASSETS | $133,264,058 | $186,092,595 | $342,335,296 | $252,767,431 | $203,445,617 | $82,365,059 | ||||||||||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||||||||||||||
Paid-in capital | $109,867,904 | $138,440,067 | $177,468,688 | $155,007,042 | $160,391,733 | $73,262,500 | ||||||||||||||||||||||
Undistributed/accumulated net investment income (loss) | 256,594 | (93,809 | ) | 6,816,773 | 1,911,819 | 310,380 | 64,993 | |||||||||||||||||||||
Undistributed net realized gain | 1,106,628 | 19,119,502 | 25,810,131 | 31,111,309 | 22,128,761 | 3,961,704 | ||||||||||||||||||||||
Net unrealized appreciation on investments | 22,032,932 | 28,626,835 | 132,239,704 | 64,737,261 | 20,614,743 | 5,075,862 | ||||||||||||||||||||||
NET ASSETS | $133,264,058 | $186,092,595 | $342,335,296 | $252,767,431 | $203,445,617 | $82,365,059 | ||||||||||||||||||||||
Class P Shares: | ||||||||||||||||||||||||||||
Shares of beneficial interest outstanding | 7,401,730 | 17,227,451 | 19,514,338 | 16,052,348 | 15,871,019 | 10,009,397 | ||||||||||||||||||||||
Net Asset Value Per Share | $18.00 | $10.80 | $17.54 | $15.75 | $12.82 | $8.23 |
(1) | Includes cash collateral segregated for certain derivative instruments (see Notes to Schedule of Investments) in the PL Mid-Cap Growth Fund of $142,485. |
(2) | The cost of foreign currency for the PL Large-Cap Growth Fund was $9. |
See Notes to Financial Statements
B-2
PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
SEPTEMBER 30, 2014 (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 | $76,205,919 | $137,213,572 | $25,981,853 | $129,214,919 | $212,247,313 | $166,368,650 | ||||||||||||||||||||||
Investments, at value | $80,275,869 | $129,939,984 | $45,230,617 | $159,407,390 | $274,826,974 | $180,815,876 | ||||||||||||||||||||||
Foreign currency held, at value (1) | — | — | — | 374,786 | 107,101 | 4,777,452 | ||||||||||||||||||||||
Receivables: | ||||||||||||||||||||||||||||
Dividends and interest | 5,540 | 140,674 | 167,172 | 160,556 | 406,044 | 317,086 | ||||||||||||||||||||||
Fund shares sold | — | — | 4,364 | 31,077 | 301,553 | 316,901 | ||||||||||||||||||||||
Securities sold | 979,248 | 193,780 | 53,661 | 600,764 | 1,915,516 | 312,278 | ||||||||||||||||||||||
Foreign tax reclaim | — | — | — | 11,101 | 448,051 | 239,616 | ||||||||||||||||||||||
Due from adviser | 3,732 | 7,760 | 3,453 | 31,162 | 19,101 | 14,380 | ||||||||||||||||||||||
Forward foreign currency contracts appreciation | — | — | — | — | — | 2,304,242 | ||||||||||||||||||||||
Prepaid expenses and other assets | 373 | 898 | 396 | 911 | 1,483 | 1,118 | ||||||||||||||||||||||
Total Assets | 81,264,762 | 130,283,096 | 45,459,663 | 160,617,747 | 278,025,823 | 189,098,949 | ||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||||||
Securities purchased | 3,437,166 | 401,399 | 72,945 | 570,818 | 473,179 | 15,133,596 | ||||||||||||||||||||||
Variation margin | — | — | — | — | 395,317 | — | ||||||||||||||||||||||
Accrued advisory fees | 39,620 | 84,538 | 54,485 | 110,184 | 167,700 | 85,910 | ||||||||||||||||||||||
Accrued administration fees | 9,905 | 16,907 | 9,081 | 20,659 | 29,594 | 19,825 | ||||||||||||||||||||||
Accrued support service expenses | 102 | 253 | 119 | 269 | 230 | 111 | ||||||||||||||||||||||
Accrued custodian fees and expenses | 459 | 1,823 | 464 | 64,247 | 19,480 | 14,230 | ||||||||||||||||||||||
Accrued transfer agency out-of-pocket expenses | 858 | 2,149 | 1,004 | 2,295 | 3,560 | 2,554 | ||||||||||||||||||||||
Accrued legal, audit and tax service fees | 3,979 | 9,449 | 4,087 | 9,473 | 15,068 | 11,396 | ||||||||||||||||||||||
Accrued trustees’ fees and expenses and deferred compensation | 1,756 | 229 | 216 | 471 | 2,317 | 3,308 | ||||||||||||||||||||||
Accrued foreign capital gains tax | — | — | — | 128,493 | — | — | ||||||||||||||||||||||
Accrued other | 5,313 | 9,257 | 3,902 | 3,738 | 18,247 | 13,881 | ||||||||||||||||||||||
Forward foreign currency contracts depreciation | — | — | — | — | — | 2,510,571 | ||||||||||||||||||||||
Total Liabilities | 3,499,158 | 526,004 | 146,303 | 910,647 | 1,124,692 | 17,795,382 | ||||||||||||||||||||||
NET ASSETS | $77,765,604 | $129,757,092 | $45,313,360 | $159,707,100 | $276,901,131 | $171,303,567 | ||||||||||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||||||||||||||
Paid-in capital | $64,113,646 | $93,627,785 | $26,369,526 | $126,647,394 | $216,441,643 | $193,397,022 | ||||||||||||||||||||||
Undistributed/accumulated net investment income (loss) | (141,504 | ) | 1,800,940 | 538,877 | 491,073 | 4,097,742 | 4,857,534 | |||||||||||||||||||||
Undistributed/accumulated net realized gain (loss) | 9,723,512 | 41,601,955 | (843,807 | ) | 2,517,205 | (6,187,289 | ) | (41,196,951 | ) | |||||||||||||||||||
Net unrealized appreciation (depreciation) on investments | 4,069,950 | (7,273,588 | ) | 19,248,764 | 30,051,428 | 62,549,035 | 14,245,962 | |||||||||||||||||||||
NET ASSETS | $77,765,604 | $129,757,092 | $45,313,360 | $159,707,100 | $276,901,131 | $171,303,567 | ||||||||||||||||||||||
Class P Shares: | ||||||||||||||||||||||||||||
Shares of beneficial interest outstanding | 5,324,478 | 10,060,458 | 3,069,821 | 10,406,610 | 15,176,617 | 17,227,861 | ||||||||||||||||||||||
Net Asset Value Per Share | $14.61 | $12.90 | $14.76 | $15.35 | $18.25 | $9.94 |
(1) | The cost of foreign currency for the PL Emerging Markets, PL International Large-Cap and PL International Value Funds was $384,986, $101,744 and $4,801,932 respectively. |
See Notes to Financial Statements
B-3
PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
SEPTEMBER 30, 2014 (Unaudited)
PL Currency Strategies Fund | PL Global Absolute Return Fund | PL Precious Metals Fund | ||||||||||||||
ASSETS | ||||||||||||||||
Investments and repurchase agreements, at cost | $199,604,965 | $178,747,546 | $41,154,625 | |||||||||||||
Investments, at value | $197,427,595 | $175,012,128 | $37,496,122 | |||||||||||||
Repurchase agreements, at value | — | 1,475,259 | — | |||||||||||||
Cash (1) | 1,500,000 | — | — | |||||||||||||
Foreign currency held, at value (2) | 12,221 | 507,879 | 612,602 | |||||||||||||
Receivables: | ||||||||||||||||
Dividends and interest | 389,848 | 2,353,641 | 1,701 | |||||||||||||
Fund shares sold | 14,548 | 164,228 | 151,452 | |||||||||||||
Securities sold | — | 5,762,744 | 1,059,980 | |||||||||||||
Variation margin | — | 697,858 | — | |||||||||||||
Foreign tax reclaim | — | 3,172 | 92,989 | |||||||||||||
Due from adviser | — | 18,668 | 654 | |||||||||||||
Forward foreign currency contracts appreciation | 10,537,665 | 7,095,852 | — | |||||||||||||
Unfunded loan commitment appreciation | — | 1,473 | — | |||||||||||||
Prepaid expenses and other assets | 842 | 1,177 | 460 | |||||||||||||
Swap agreements, at value | — | 7,841,703 | — | |||||||||||||
Total Assets | 209,882,719 | 200,935,782 | 39,415,960 | |||||||||||||
LIABILITIES | ||||||||||||||||
Payables: | ||||||||||||||||
Securities purchased | — | 2,901,842 | 1,442,259 | |||||||||||||
Securities covering shorts | — | 5,776,438 | — | |||||||||||||
Securities sold short, at value (proceeds $1,266,538) | — | 1,452,324 | — | |||||||||||||
Due to brokers (3) | 3,679,978 | 4,582,104 | — | |||||||||||||
Accrued advisory fees | 104,969 | 117,149 | 28,079 | |||||||||||||
Accrued administration fees | 24,224 | 21,965 | 6,194 | |||||||||||||
Accrued support service expenses | 275 | 337 | 136 | |||||||||||||
Accrued custodian fees and expenses | 3,490 | 77,116 | 4,003 | |||||||||||||
Accrued transfer agency out-of-pocket expenses | 2,009 | 2,867 | 1,147 | |||||||||||||
Accrued legal, audit and tax service fees | 8,965 | 12,320 | 4,777 | |||||||||||||
Accrued interest | — | 37,446 | — | |||||||||||||
Accrued other | 4,583 | 12,583 | 4,191 | |||||||||||||
Forward foreign currency contracts depreciation | 8,802,990 | 2,668,776 | — | |||||||||||||
Outstanding options written, at value (premiums received $894,118) | — | 1,375,959 | — | |||||||||||||
Swap agreements, at value | — | 1,806,558 | — | |||||||||||||
Total Liabilities | 12,631,483 | 20,845,784 | 1,490,786 | |||||||||||||
NET ASSETS | $197,251,236 | $180,089,998 | $37,925,174 | |||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $194,972,635 | $173,271,172 | $70,435,568 | |||||||||||||
Undistributed/accumulated net investment income (loss) | (5,349,743 | ) | 3,137,423 | (275,716 | ) | |||||||||||
Undistributed/accumulated net realized gain (loss) | 8,092,083 | 372,066 | (28,565,295 | ) | ||||||||||||
Net unrealized appreciation (depreciation) on investments | (463,739 | ) | 3,309,337 | (3,669,383 | ) | |||||||||||
NET ASSETS | $197,251,236 | $180,089,998 | $37,925,174 | |||||||||||||
Class P Shares: | ||||||||||||||||
Shares of beneficial interest outstanding | 19,605,970 | 17,742,896 | 7,053,564 | |||||||||||||
Net Asset Value Per Share | $10.06 | $10.15 | $5.38 |
(1) | Includes cash collateral segregated for certain derivatives (See Notes to Schedule of Investments) in the PL Currency Strategies Fund of $310,000. |
(2) | The cost of foreign currency for the PL Currency Strategies, PL Global Absolute Return and PL Precious Metals Funds was $12,428, $519,321 and $620,349 respectively. |
(3) | The PL Currency Strategies and PL Global Absolute Return 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 investment securities (See Note 5 in Notes to Financial Statements). |
See Notes to Financial Statements
B-4
PACIFIC LIFE FUNDS
FOR THE SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2014 (Unaudited)
PL Floating Rate Loan Fund | PL Inflation Managed Fund | PL Managed Fund | PL Short Duration Fund | PL Emerging Markets Debt Fund | PL Comstock Fund | |||||||||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||||||||||
Dividends, net of foreign taxes withheld | $294 | $23 | $— | $285 | $— | $3,118,637 | ||||||||||||||||||||||
Interest, net of foreign taxes withheld | 2,669,528 | 3,952,950 | 5,445,165 | 2,046,678 | 4,399,818 | — | ||||||||||||||||||||||
Other | 47,952 | — | 1,092 | — | — | — | ||||||||||||||||||||||
Total Investment Income | 2,717,774 | 3,952,973 | 5,446,257 | 2,046,963 | 4,399,818 | 3,118,637 | ||||||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||||||
Advisory fees | 471,900 | 367,933 | 1,219,173 | 471,407 | 567,793 | 1,126,055 | ||||||||||||||||||||||
Administration fees | 94,380 | 137,975 | 457,190 | 176,778 | 108,496 | 225,211 | ||||||||||||||||||||||
Support services expenses | 9,360 | 14,039 | 45,897 | 17,635 | 9,719 | 22,969 | ||||||||||||||||||||||
Custodian fees and expenses | 12,765 | 9,018 | 22,199 | 4,545 | 35,480 | 4,609 | ||||||||||||||||||||||
Shareholder report expenses | 3,057 | 4,614 | 14,972 | 5,673 | 3,203 | 7,495 | ||||||||||||||||||||||
Transfer agency out-of-pocket expenses | 6,018 | 9,029 | 29,511 | 11,337 | 6,252 | 14,767 | ||||||||||||||||||||||
Registration fees | 998 | 1,529 | 4,965 | 2,070 | 1,088 | 2,391 | ||||||||||||||||||||||
Legal, audit and tax service fees | 8,358 | 12,596 | 40,993 | 15,565 | 8,719 | 20,484 | ||||||||||||||||||||||
Trustees’ fees and expenses | 2,142 | 3,290 | 10,931 | 4,056 | 2,173 | 5,380 | ||||||||||||||||||||||
Interest expense | — | 19,717 | 13 | — | — | — | ||||||||||||||||||||||
Other | 33,731 | 16,470 | 46,998 | 40,375 | 18,944 | 11,102 | ||||||||||||||||||||||
Total Expenses | 642,709 | 596,210 | 1,892,842 | 749,441 | 761,867 | 1,440,463 | ||||||||||||||||||||||
Advisory Fee Waiver (1) | (62,920 | ) | — | — | — | — | (22,521 | ) | ||||||||||||||||||||
Adviser Expense Reimbursement (2) | (76,429 | ) | (70,585 | ) | (216,467 | ) | (101,256 | ) | (85,578 | ) | (89,196 | ) | ||||||||||||||||
Net Expenses | 503,360 | 525,625 | 1,676,375 | 648,185 | 676,289 | 1,328,746 | ||||||||||||||||||||||
NET INVESTMENT INCOME | 2,214,414 | 3,427,348 | 3,769,882 | 1,398,778 | 3,723,529 | 1,789,891 | ||||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||||||||||
Net Realized Gain (Loss) On: | ||||||||||||||||||||||||||||
Investment security transactions | 34,053 | 753,556 | 2,620,168 | 134,648 | 55,530 | 21,035,078 | ||||||||||||||||||||||
Closed short positions | — | 11,747 | (2,148 | ) | — | — | — | |||||||||||||||||||||
Futures contract transactions | — | (93,483 | ) | 3,900,247 | (319 | ) | — | — | ||||||||||||||||||||
Swap transactions | — | (59,489 | ) | 495,448 | — | 71,890 | — | |||||||||||||||||||||
Written option transactions | — | 165,031 | 796,372 | — | — | — | ||||||||||||||||||||||
Foreign currency transactions | — | 784,224 | 1,415,165 | 6,606 | 223,954 | 1,008,517 | ||||||||||||||||||||||
Net Realized Gain | 34,053 | 1,561,586 | 9,225,252 | 140,935 | 351,374 | 22,043,595 | ||||||||||||||||||||||
Change In Net Unrealized Appreciation (Depreciation) On: | ||||||||||||||||||||||||||||
Investment securities | (1,988,615 | ) | (1,804,093 | ) | (2,085,356 | ) | (612,951 | ) | (3,797,480 | ) | (9,082,605 | ) | ||||||||||||||||
Unfunded loan commitments | 73 | — | — | — | — | — | ||||||||||||||||||||||
Short positions | — | — | (2,031 | ) | — | — | — | |||||||||||||||||||||
Futures contracts | — | 37,138 | 376,725 | (5,497 | ) | — | — | |||||||||||||||||||||
Swaps | — | (483,350 | ) | (1,161,429 | ) | — | (191,922 | ) | — | |||||||||||||||||||
Written options | — | (85,310 | ) | (42,380 | ) | — | — | — | ||||||||||||||||||||
Foreign currencies | — | 1,402,310 | 3,517,867 | 3,120 | (232,470 | ) | 597,402 | |||||||||||||||||||||
Change in Net Unrealized Appreciation (Depreciation) | (1,988,542 | ) | (933,305 | ) | 603,396 | (615,328 | ) | (4,221,872 | ) | (8,485,203 | ) | |||||||||||||||||
NET GAIN (LOSS) | (1,954,489 | ) | 628,281 | 9,828,648 | (474,393 | ) | (3,870,498 | ) | 13,558,392 | |||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | $259,925 | $4,055,629 | $13,598,530 | $924,385 | ($146,969 | ) | $15,348,283 | |||||||||||||||||||||
Foreign taxes withheld on dividends and interest | $— | $1,450 | $— | $— | $42,104 | $92,120 |
(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 THE SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2014 (Unaudited)
PL Growth Fund | PL Large-Cap Fund | PL Large-Cap Fund | PL Main Street Fund | PL Mid-Cap Fund | PL Mid-Cap Growth Fund | |||||||||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||||||||||
Dividends, net of foreign taxes withheld | $514,266 | $700,933 | $4,095,677 | $2,163,001 | $1,040,452 | $392,330 | ||||||||||||||||||||||
Interest, net of foreign taxes withheld | 1,124 | — | — | — | — | — | ||||||||||||||||||||||
Total Investment Income | 515,390 | 700,933 | 4,095,677 | 2,163,001 | 1,040,452 | 392,330 | ||||||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||||||
Advisory fees | 314,787 | 666,339 | 1,217,582 | 586,627 | 592,765 | 313,092 | ||||||||||||||||||||||
Administration fees | 85,851 | 133,268 | 280,981 | 195,542 | 136,792 | 67,091 | ||||||||||||||||||||||
Support services expenses | 7,199 | 13,497 | 28,439 | 19,083 | 12,597 | 6,481 | ||||||||||||||||||||||
Custodian fees and expenses | 1,664 | 5,339 | 5,074 | 4,362 | 2,181 | 1,327 | ||||||||||||||||||||||
Shareholder report expenses | 3,317 | 5,557 | 9,259 | 6,262 | 4,088 | 2,170 | ||||||||||||||||||||||
Transfer agency out-of-pocket expenses | 4,630 | 8,679 | 18,284 | 12,269 | 8,099 | 4,166 | ||||||||||||||||||||||
Registration fees | 806 | 1,566 | 3,078 | 1,897 | 1,426 | 672 | ||||||||||||||||||||||
Legal, audit and tax service fees | 6,367 | 11,998 | 25,299 | 17,084 | 11,167 | 5,761 | ||||||||||||||||||||||
Trustees’ fees and expenses | 1,788 | 3,462 | 6,735 | 4,368 | 2,884 | 1,637 | ||||||||||||||||||||||
Other | 7,338 | 7,083 | 12,084 | 8,868 | 8,186 | 5,428 | ||||||||||||||||||||||
Total Expenses | 433,747 | 856,788 | 1,606,815 | 856,362 | 780,185 | 407,825 | ||||||||||||||||||||||
Advisory Fee Waiver (1) | — | (39,980 | ) | — | — | — | (22,364 | ) | ||||||||||||||||||||
Adviser Expense Reimbursement (2) | (33,109 | ) | (57,182 | ) | (108,252 | ) | (74,194 | ) | (50,629 | ) | (27,642 | ) | ||||||||||||||||
Net Expenses | 400,638 | 759,626 | 1,498,563 | 782,168 | 729,556 | 357,819 | ||||||||||||||||||||||
NET INVESTMENT INCOME (LOSS) | 114,752 | (58,693 | ) | 2,597,114 | 1,380,833 | 310,896 | 34,511 | |||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||||||||||
Net Realized Gain (Loss) On: | ||||||||||||||||||||||||||||
Investment security transactions | 1,514,105 | 11,136,522 | 23,091,746 | 14,937,801 | 9,778,056 | 836,442 | ||||||||||||||||||||||
Written option transactions | — | — | — | — | — | 63,280 | ||||||||||||||||||||||
Foreign currency transactions | (299 | ) | (17,614 | ) | 52 | (1,702 | ) | — | (401 | ) | ||||||||||||||||||
Net Realized Gain | 1,513,806 | 11,118,908 | 23,091,798 | 14,936,099 | 9,778,056 | 899,321 | ||||||||||||||||||||||
Change In Net Unrealized Appreciation (Depreciation) On: | ||||||||||||||||||||||||||||
Investment securities | 2,886,307 | (2,110,017 | ) | (7,619,089 | ) | (1,290,973 | ) | (10,093,165 | ) | (421,589 | ) | |||||||||||||||||
Written options | — | — | — | — | — | (4,165 | ) | |||||||||||||||||||||
Foreign currencies | (339 | ) | 15,155 | — | (4,142 | ) | — | (293 | ) | |||||||||||||||||||
Change in Net Unrealized Appreciation (Depreciation) | 2,885,968 | (2,094,862 | ) | (7,619,089 | ) | (1,295,115 | ) | (10,093,165 | ) | (426,047 | ) | |||||||||||||||||
NET GAIN (LOSS) | 4,399,774 | 9,024,046 | 15,472,709 | 13,640,984 | (315,109 | ) | 473,274 | |||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | $4,514,526 | $8,965,353 | $18,069,823 | $15,021,817 | ($4,213 | ) | $507,785 | |||||||||||||||||||||
Foreign taxes withheld on dividends and interest | $3,888 | $386 | $81,776 | $22,905 | $551 | $— |
(1) | See Note 6 in Notes to Financial Statements. |
(2) | See Note 7B in Notes to Financial Statements. |
See Notes to Financial Statements
B-6
PACIFIC LIFE FUNDS
STATEMENTS OF OPERATIONS (Continued)
FOR THE SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2014 (Unaudited)
PL Small-Cap Fund | PL Small-Cap Fund | PL Real Estate Fund | PL Emerging Markets Fund | PL International Large-Cap Fund | PL International Fund | |||||||||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||||||||||
Dividends, net of foreign taxes withheld | $93,060 | $1,147,547 | $880,483 | $1,810,331 | $4,056,399 | $3,335,720 | ||||||||||||||||||||||
Interest, net of foreign taxes withheld | — | — | — | — | 563 | — | ||||||||||||||||||||||
Total Investment Income | 93,060 | 1,147,547 | 880,483 | 1,810,331 | 4,056,962 | 3,335,720 | ||||||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||||||
Advisory fees | 191,744 | 547,211 | 348,264 | 657,206 | 1,035,852 | 564,305 | ||||||||||||||||||||||
Administration fees | 47,936 | 109,442 | 58,044 | 123,226 | 182,798 | 130,224 | ||||||||||||||||||||||
Support services expenses | 4,322 | 10,802 | 5,039 | 11,518 | 18,358 | 13,321 | ||||||||||||||||||||||
Custodian fees and expenses | 855 | 3,098 | 992 | 126,821 | 41,719 | 35,003 | ||||||||||||||||||||||
Shareholder report expenses | 1,413 | 3,525 | 1,649 | 3,764 | 5,965 | 4,322 | ||||||||||||||||||||||
Transfer agency out-of-pocket expenses | 2,777 | 6,944 | 3,240 | 7,407 | 11,803 | 8,562 | ||||||||||||||||||||||
Registration fees | 385 | 1,077 | 575 | 1,286 | 2,022 | 1,351 | ||||||||||||||||||||||
Legal, audit and tax service fees | 3,842 | 9,634 | 4,498 | 10,249 | 16,286 | 11,791 | ||||||||||||||||||||||
Trustees’ fees and expenses | 1,084 | 2,456 | 1,151 | 2,630 | 4,291 | 3,215 | ||||||||||||||||||||||
Other | 6,920 | 8,717 | 3,647 | 24,246 | 16,746 | 13,126 | ||||||||||||||||||||||
Total Expenses | 261,278 | 702,906 | 427,099 | 968,353 | 1,335,840 | 785,220 | ||||||||||||||||||||||
Adviser Expense Reimbursement (1) | (21,599 | ) | (46,252 | ) | (20,791 | ) | (187,920 | ) | (117,190 | ) | (90,691 | ) | ||||||||||||||||
Net Expenses | 239,679 | 656,654 | 406,308 | 780,433 | 1,218,650 | 694,529 | ||||||||||||||||||||||
NET INVESTMENT INCOME (LOSS) | (146,619 | ) | 490,893 | 474,175 | 1,029,898 | 2,838,312 | 2,641,191 | |||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||||||||||
Net Realized Gain (Loss) On: | ||||||||||||||||||||||||||||
Investment security transactions | 6,230,998 | 35,617,611 | 6,389,075 | 1,756,550 | 5,936,048 | 5,997,119 | ||||||||||||||||||||||
Futures contract transactions | — | (26,950 | ) | — | — | 2,378 | — | |||||||||||||||||||||
Foreign currency transactions | — | (1,150 | ) | — | (19,208 | ) | (126,324 | ) | 820,105 | |||||||||||||||||||
Net Realized Gain | 6,230,998 | 35,589,511 | 6,389,075 | 1,737,342 | 5,812,102 | 6,817,224 | ||||||||||||||||||||||
Change In Net Unrealized Appreciation (Depreciation) On: | ||||||||||||||||||||||||||||
Investment securities (2) | (9,214,723 | ) | (42,792,564 | ) | (4,008,575 | ) | 3,546,857 | (12,100,694 | ) | (14,750,744 | ) | |||||||||||||||||
Foreign currencies | — | (83 | ) | — | (25,258 | ) | (42,596 | ) | (838,319 | ) | ||||||||||||||||||
Change in Net Unrealized Appreciation (Depreciation) | (9,214,723 | ) | (42,792,647 | ) | (4,008,575 | ) | 3,521,599 | (12,143,290 | ) | (15,589,063 | ) | |||||||||||||||||
NET GAIN (LOSS) | (2,983,725 | ) | (7,203,136 | ) | 2,380,500 | 5,258,941 | (6,331,188 | ) | (8,771,839 | ) | ||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | ($3,130,344 | ) | ($6,712,243 | ) | $2,854,675 | $6,288,839 | ($3,492,876 | ) | ($6,130,648 | ) | ||||||||||||||||||
Foreign taxes withheld on dividends and interest | $— | $4,037 | $— | $189,186 | $443,637 | $369,369 |
(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 increase in deferred foreign capital gains tax of $36,345. |
See Notes to Financial Statements
B-7
PACIFIC LIFE FUNDS
STATEMENTS OF OPERATIONS (Continued)
FOR THE SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2014 (Unaudited)
PL Currency Strategies Fund | PL Global Absolute Fund | PL Precious Fund | ||||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends, net of foreign taxes withheld | $3,101 | $— | $265,302 | |||||||||||||
Interest, net of foreign taxes withheld | 112,598 | 5,710,186 | 63 | |||||||||||||
Total Investment Income | 115,699 | 5,710,186 | 265,365 | |||||||||||||
EXPENSES | ||||||||||||||||
Advisory fees | 508,180 | 779,494 | 297,890 | |||||||||||||
Administration fees | 117,272 | 146,155 | 59,578 | |||||||||||||
Support services expenses | 10,011 | 14,400 | 5,760 | |||||||||||||
Custodian fees and expenses | 6,788 | 116,891 | 7,826 | |||||||||||||
Shareholder report expenses | 3,274 | 4,857 | 1,881 | |||||||||||||
Transfer agency out-of-pocket expenses | 6,435 | 9,259 | 3,703 | |||||||||||||
Registration fees | 957 | 1,498 | 633 | |||||||||||||
Legal, audit and tax service fees | 8,956 | 12,862 | 5,137 | |||||||||||||
Trustees’ fees and expenses | 2,245 | 3,228 | 1,290 | |||||||||||||
Interest expense | — | 96,161 | — | |||||||||||||
Other | 2,717 | 16,930 | 4,215 | |||||||||||||
Total Expenses | 666,835 | 1,201,735 | 387,913 | |||||||||||||
Advisory Fee Waiver (1) | — | — | (27,803 | ) | ||||||||||||
Adviser Expense Reimbursement (2) | (4,342 | ) | (116,300 | ) | (5,903 | ) | ||||||||||
Net Expenses | 662,493 | 1,085,435 | 354,207 | |||||||||||||
NET INVESTMENT INCOME (LOSS) | (546,794 | ) | 4,624,751 | (88,842 | ) | |||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net Realized Gain (Loss) On: | ||||||||||||||||
Investment security transactions | (2,137 | ) | 2,181,325 | (18,014,882 | ) | |||||||||||
Closed short positions | — | (164,696 | ) | — | ||||||||||||
Futures contract transactions | — | (1,208,693 | ) | — | ||||||||||||
Swap transactions | — | 15,730 | — | |||||||||||||
Written option transactions | — | 196,345 | — | |||||||||||||
Foreign currency transactions | 8,098,068 | 276,705 | (2,848 | ) | ||||||||||||
Net Realized Gain (Loss) | 8,095,931 | 1,296,716 | (18,017,730 | ) | ||||||||||||
Change In Net Unrealized Appreciation (Depreciation) On: | ||||||||||||||||
Investment securities | (3,895,287 | ) | (2,043,226 | ) | 20,338,975 | |||||||||||
Unfunded loan commitments | — | 1,473 | — | |||||||||||||
Short positions | — | 51,677 | — | |||||||||||||
Futures contracts | — | 106,667 | — | |||||||||||||
Swaps | — | (38,087 | ) | — | ||||||||||||
Written options | — | (652,606 | ) | — | ||||||||||||
Foreign currencies | 6,868,608 | 5,629,538 | (10,822 | ) | ||||||||||||
Change in Net Unrealized Appreciation | 2,973,321 | 3,055,436 | 20,328,153 | |||||||||||||
NET GAIN | 11,069,252 | 4,352,152 | 2,310,423 | |||||||||||||
NET INCREASE IN NET ASSETS | $10,522,458 | $8,976,903 | $2,221,581 | |||||||||||||
Foreign taxes withheld on dividends and interest | $4,234 | $91,652 | $53,758 |
(1) | See Note 6 in Notes to Financial Statements. |
(2) | See Note 7B in Notes to Financial Statements. |
See Notes to Financial Statements
B-8
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
Six-Month Period Ended September 30, 2014 (1) | Year Ended March 31, 2014 | Six-Month Period Ended September 30, 2014 (1) | Year Ended March 31, 2014 | Six-Month Period Ended September 30, 2014 (1) | Year Ended March 31, 2014 | |||||||||||||||||||||||||||
PL Floating Rate Loan Fund | PL Inflation Managed Fund | PL Managed Bond Fund | ||||||||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||||||
Net investment income | $2,214,414 | $4,410,889 | $3,427,348 | $1,403,593 | $3,769,882 | $6,745,366 | ||||||||||||||||||||||||||
Net realized gain (loss) | 34,053 | 1,130,734 | 1,561,586 | (1,712,382 | ) | 9,225,252 | 544,477 | |||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) | (1,988,542 | ) | (1,632,529 | ) | (933,305 | ) | (11,666,272 | ) | 603,396 | (14,411,217 | ) | |||||||||||||||||||||
Net Increase (Decrease) in Net Assets | 259,925 | 3,909,094 | 4,055,629 | (11,975,061 | ) | 13,598,530 | (7,121,374 | ) | ||||||||||||||||||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||||||||
Net investment income - Class P | — | (4,512,660 | ) | — | (755,842 | ) | — | (8,368,504 | ) | |||||||||||||||||||||||
Net realized gains - Class P | — | (1,669,705 | ) | — | (2,707,398 | ) | — | (2,998,837 | ) | |||||||||||||||||||||||
Net Decrease from Dividends and | — | (6,182,365 | ) | — | (3,463,240 | ) | — | (11,367,341 | ) | |||||||||||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||||||||||
Proceeds from sale of shares - Class P | 10,692,239 | 17,705,946 | 10,708,140 | 46,018,666 | 88,410,767 | 63,781,929 | ||||||||||||||||||||||||||
Dividends and distribution reinvestments - Class P | — | 6,182,365 | — | 3,463,240 | — | 11,367,341 | ||||||||||||||||||||||||||
Cost of shares repurchased - Class P | (5,360,702 | ) | (8,703,442 | ) | (69,518,618 | ) | (12,560,393 | ) | (24,215,233 | ) | (42,192,868 | ) | ||||||||||||||||||||
Net Increase (Decrease) in Net Assets from | 5,331,537 | 15,184,869 | (58,810,478 | ) | 36,921,513 | 64,195,534 | 32,956,402 | |||||||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | 5,591,462 | 12,911,598 | (54,754,849 | ) | 21,483,212 | 77,794,064 | 14,467,687 | |||||||||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||||||
Beginning of Year or Period | 123,115,931 | 110,204,333 | 185,764,518 | 164,281,306 | 579,752,952 | 565,285,265 | ||||||||||||||||||||||||||
End of Year or Period | $128,707,393 | $123,115,931 | $131,009,669 | $185,764,518 | $657,547,016 | $579,752,952 | ||||||||||||||||||||||||||
Undistributed/Accumulated Net Investment Income (Loss) | $3,288,773 | $1,074,359 | $2,460,356 | ($966,992 | ) | $4,429,728 | $659,846 | |||||||||||||||||||||||||
PL Short Duration | PL Emerging Markets Debt Fund | PL Comstock Fund | ||||||||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||||||
Net investment income | $1,398,778 | $2,354,102 | $3,723,529 | $5,037,344 | $1,789,891 | $4,378,442 | ||||||||||||||||||||||||||
Net realized gain (loss) | 140,935 | (122,598 | ) | 351,374 | (4,722,575 | ) | 22,043,595 | 11,515,551 | ||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) | (615,328 | ) | (893,294 | ) | (4,221,872 | ) | (3,163,830 | ) | (8,485,203 | ) | 43,949,715 | |||||||||||||||||||||
Net Increase (Decrease) in Net Assets | 924,385 | 1,338,210 | (146,969 | ) | (2,849,061 | ) | 15,348,283 | 59,843,708 | ||||||||||||||||||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||||||||
Net investment income - Class P | — | (3,024,235 | ) | — | (3,887,073 | ) | — | (2,637,092 | ) | |||||||||||||||||||||||
Net realized gains - Class P | — | — | — | (1,122,666 | ) | — | — | |||||||||||||||||||||||||
Net Decrease from Dividends and | — | (3,024,235 | ) | — | (5,009,739 | ) | — | (2,637,092 | ) | |||||||||||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||||||||||
Proceeds from sale of shares - Class P | 28,606,850 | 24,100,375 | 39,258,795 | 55,566,570 | 2,685,388 | — | ||||||||||||||||||||||||||
Dividends and distribution reinvestments - Class P | — | 3,024,235 | — | 5,009,739 | — | 2,637,092 | ||||||||||||||||||||||||||
Cost of shares repurchased - Class P | (10,931,514 | ) | (19,850,587 | ) | (5,508,637 | ) | (8,047,397 | ) | (59,501,325 | ) | (12,917,286 | ) | ||||||||||||||||||||
Net Increase (Decrease) in Net Assets from | 17,675,336 | 7,274,023 | 33,750,158 | 52,528,912 | (56,815,937 | ) | (10,280,194 | ) | ||||||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | 18,599,721 | 5,587,998 | 33,603,189 | 44,670,112 | (41,467,654 | ) | 46,926,422 | |||||||||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||||||
Beginning of Year or Period | 229,188,696 | 223,600,698 | 130,515,949 | 85,845,837 | 308,597,808 | 261,671,386 | ||||||||||||||||||||||||||
End of Year or Period | $247,788,417 | $229,188,696 | $164,119,138 | $130,515,949 | $267,130,154 | $308,597,808 | ||||||||||||||||||||||||||
Undistributed Net Investment Income | $2,048,322 | $649,544 | $4,723,437 | $999,908 | $3,325,419 | $1,535,528 |
(1) | Unaudited. |
See Notes to Financial Statements
B-9
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
Six-Month Period Ended September 30, 2014 (1) | Year Ended March 31, 2014 | Six-Month Period Ended September 30, 2014 (1) | Year Ended March 31, 2014 | Six-Month Period Ended September 30, 2014 (1) | Year Ended March 31, 2014 | |||||||||||||||||||||||||||
PL Growth Fund | PL Large-Cap Growth Fund | PL Large-Cap Value Fund | ||||||||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||||||
Net investment income (loss) | $114,752 | $150,031 | ($58,693 | ) | ($103,987 | ) | $2,597,114 | $8,203,641 | ||||||||||||||||||||||||
Net realized gain | 1,513,806 | 8,246,940 | 11,118,908 | 24,228,027 | 23,091,798 | 15,301,085 | ||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) | 2,885,968 | 7,367,677 | (2,094,862 | ) | 9,193,870 | (7,619,089 | ) | 44,822,644 | ||||||||||||||||||||||||
Net Increase in Net Assets | 4,514,526 | 15,764,648 | 8,965,353 | 33,317,910 | 18,069,823 | 68,327,370 | ||||||||||||||||||||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||||||||
Net investment income - Class P | — | (573,668 | ) | — | (299,083 | ) | — | (5,289,219 | ) | |||||||||||||||||||||||
Net realized gains - Class P | — | — | — | (33,866,205 | ) | — | — | |||||||||||||||||||||||||
Net Decrease from Dividends and | — | (573,668 | ) | — | (34,165,288 | ) | — | (5,289,219 | ) | |||||||||||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||||||||||
Proceeds from sale of shares - Class P | 30,483,039 | 39,665,244 | 12,686,507 | 1,187,092 | 3,819,713 | — | ||||||||||||||||||||||||||
Dividends and distribution reinvestments - Class P | — | 573,668 | — | 34,165,288 | — | 5,289,219 | ||||||||||||||||||||||||||
Cost of shares repurchased - Class P | (3,018,154 | ) | (2,756,202 | ) | (8,172,601 | ) | (4,289,678 | ) | (59,926,650 | ) | (12,039,570 | ) | ||||||||||||||||||||
Net Increase (Decrease) in Net Assets from | 27,464,885 | 37,482,710 | 4,513,906 | 31,062,702 | (56,106,937 | ) | (6,750,351 | ) | ||||||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | 31,979,411 | 52,673,690 | 13,479,259 | 30,215,324 | (38,037,114 | ) | 56,287,800 | |||||||||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||||||
Beginning of Year or Period | 101,284,647 | 48,610,957 | 172,613,336 | 142,398,012 | 380,372,410 | 324,084,610 | ||||||||||||||||||||||||||
End of Year or Period | $133,264,058 | $101,284,647 | $186,092,595 | $172,613,336 | $342,335,296 | $380,372,410 | ||||||||||||||||||||||||||
Undistributed/Accumulated Net Investment Income (Loss) | $256,594 | $141,842 | ($93,809 | ) | ($35,116 | ) | $6,816,773 | $4,219,659 | ||||||||||||||||||||||||
PL Main Street Core Fund | PL Mid-Cap Equity Fund | PL Mid-Cap Growth Fund | ||||||||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||||||
Net investment income (loss) | $1,380,833 | $2,335,231 | $310,896 | $553,452 | $34,511 | ($65,397 | ) | |||||||||||||||||||||||||
Net realized gain | 14,936,099 | 32,445,487 | 9,778,056 | 16,313,197 | 899,321 | 22,500,834 | ||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) | (1,295,115 | ) | 13,569,441 | (10,093,165 | ) | 19,772,101 | (426,047 | ) | (7,212,354 | ) | ||||||||||||||||||||||
Net Increase (Decrease) in Net Assets | 15,021,817 | 48,350,159 | (4,213 | ) | 36,638,750 | 507,785 | 15,223,083 | |||||||||||||||||||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||||||||
Net investment income - Class P | — | (2,316,456 | ) | — | (833,404 | ) | — | (152,439 | ) | |||||||||||||||||||||||
Net realized gains - Class P | — | — | — | (12,097,077 | ) | — | (19,078,154 | ) | ||||||||||||||||||||||||
Net Decrease from Dividends and | — | (2,316,456 | ) | — | (12,930,481 | ) | — | (19,230,593 | ) | |||||||||||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||||||||||
Proceeds from sale of shares - Class P | 2,596,066 | 1,444,719 | 37,751,569 | — | 3,181,726 | 16,183,178 | ||||||||||||||||||||||||||
Dividends and distribution reinvestments - Class P | — | 2,316,456 | — | 12,930,481 | — | 19,230,593 | ||||||||||||||||||||||||||
Cost of shares repurchased - Class P | (22,425,454 | ) | (4,648,182 | ) | (5,658,637 | ) | (3,697,469 | ) | (12,128,173 | ) | (2,159,393 | ) | ||||||||||||||||||||
Net Increase (Decrease) in Net Assets from | (19,829,388 | ) | (887,007 | ) | 32,092,932 | 9,233,012 | (8,946,447 | ) | 33,254,378 | |||||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | (4,807,571 | ) | 45,146,696 | 32,088,719 | 32,941,281 | (8,438,662 | ) | 29,246,868 | ||||||||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||||||
Beginning of Year or Period | 257,575,002 | 212,428,306 | 171,356,898 | 138,415,617 | 90,803,721 | 61,556,853 | ||||||||||||||||||||||||||
End of Year or Period | $252,767,431 | $257,575,002 | $203,445,617 | $171,356,898 | $82,365,059 | $90,803,721 | ||||||||||||||||||||||||||
Undistributed/Accumulated Net Investment Income (Loss) | $1,911,819 | $530,986 | $310,380 | ($516 | ) | $64,993 | $30,482 |
(1) | Unaudited. |
See Notes to Financial Statements
B-10
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
Six-Month Period Ended September 30, 2014 (1) | Year Ended March 31, 2014 | Six-Month Period Ended September 30, 2014 (1) | Year Ended March 31, 2014 | Six-Month Period Ended September 30, 2014 (1) | Year Ended March 31, 2014 | |||||||||||||||||||||||||||
PL Small-Cap Growth Fund | PL Small-Cap Value Fund | PL Real Estate Fund | ||||||||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||||||
Net investment income (loss) | ($146,619 | ) | ($156,785 | ) | $490,893 | $2,065,670 | $474,175 | $975,804 | ||||||||||||||||||||||||
Net realized gain | 6,230,998 | 7,918,947 | 35,589,511 | 13,048,909 | 6,389,075 | 1,621,422 | ||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) | (9,214,723 | ) | 2,291,721 | (42,792,647 | ) | 7,490,389 | (4,008,575 | ) | 1,468,596 | |||||||||||||||||||||||
Net Increase (Decrease) in Net Assets | (3,130,344 | ) | 10,053,883 | (6,712,243 | ) | 22,604,968 | 2,854,675 | 4,065,822 | ||||||||||||||||||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||||||||
Net investment income - Class P | — | (98,659 | ) | — | (1,780,478 | ) | — | (1,118,697 | ) | |||||||||||||||||||||||
Net realized gains - Class P | — | (1,357,600 | ) | — | (6,305,462 | ) | — | — | ||||||||||||||||||||||||
Net Decrease from Dividends and | — | (1,456,259 | ) | — | (8,085,940 | ) | — | (1,118,697 | ) | |||||||||||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||||||||||
Proceeds from sale of shares - Class P | 23,567,030 | — | 3,461,990 | 1,624,962 | 1,362,208 | 10,629,608 | ||||||||||||||||||||||||||
Dividends and distribution reinvestments - Class P | — | 1,456,259 | — | 8,085,940 | — | 1,118,697 | ||||||||||||||||||||||||||
Cost of shares repurchased - Class P | (2,592,415 | ) | (1,030,591 | ) | (14,694,912 | ) | (2,174,457 | ) | (32,731,089 | ) | (1,006,216 | ) | ||||||||||||||||||||
Net Increase (Decrease) in Net Assets from | 20,974,615 | 425,668 | (11,232,922 | ) | 7,536,445 | (31,368,881 | ) | 10,742,089 | ||||||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | 17,844,271 | 9,023,292 | (17,945,165 | ) | 22,055,473 | (28,514,206 | ) | 13,689,214 | ||||||||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||||||
Beginning of Year or Period | 59,921,333 | 50,898,041 | 147,702,257 | 125,646,784 | 73,827,566 | 60,138,352 | ||||||||||||||||||||||||||
End of Year or Period | $77,765,604 | $59,921,333 | $129,757,092 | $147,702,257 | $45,313,360 | $73,827,566 | ||||||||||||||||||||||||||
Undistributed/Accumulated Net Investment Income (Loss) | ($141,504 | ) | $5,115 | $1,800,940 | $1,310,047 | $538,877 | $64,702 | |||||||||||||||||||||||||
PL Emerging Markets Fund | PL International Large-Cap Fund | PL International Value Fund | ||||||||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||||||
Net investment income | $1,029,898 | $783,231 | $2,838,312 | $2,741,883 | $2,641,191 | $6,527,844 | ||||||||||||||||||||||||||
Net realized gain | 1,737,342 | 4,504,312 | 5,812,102 | 3,556,669 | 6,817,224 | 8,728,123 | ||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) | 3,521,599 | 3,487,389 | (12,143,290 | ) | 21,548,202 | (15,589,063 | ) | 9,297,780 | ||||||||||||||||||||||||
Net Increase (Decrease) in Net Assets | 6,288,839 | 8,774,932 | (3,492,876 | ) | 27,846,754 | (6,130,648 | ) | 24,553,747 | ||||||||||||||||||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||||||||
Net investment income - Class P | — | (903,956 | ) | — | (2,672,165 | ) | — | (4,102,104 | ) | |||||||||||||||||||||||
Net realized gains - Class P | — | (2,799,145 | ) | — | — | — | — | |||||||||||||||||||||||||
Net Decrease from Dividends and | — | (3,703,101 | ) | — | (2,672,165 | ) | — | (4,102,104 | ) | |||||||||||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||||||||||
Proceeds from sale of shares - Class P | 4,536,156 | 35,981,890 | 58,730,314 | 19,090,781 | 21,874,172 | 9,339,592 | ||||||||||||||||||||||||||
Dividends and distribution reinvestments - Class P | — | 3,703,101 | — | 2,672,165 | — | 4,102,104 | ||||||||||||||||||||||||||
Cost of shares repurchased - Class P | (4,450,515 | ) | (2,234,325 | ) | (18,858,455 | ) | (5,378,260 | ) | (20,980,828 | ) | (3,902,120 | ) | ||||||||||||||||||||
Net Increase in Net Assets from | 85,641 | 37,450,666 | 39,871,859 | 16,384,686 | 893,344 | 9,539,576 | ||||||||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | 6,374,480 | 42,522,497 | 36,378,983 | 41,559,275 | (5,237,304 | ) | 29,991,219 | |||||||||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||||||
Beginning of Year or Period | 153,332,620 | 110,810,123 | 240,522,148 | 198,962,873 | 176,540,871 | 146,549,652 | ||||||||||||||||||||||||||
End of Year or Period | $159,707,100 | $153,332,620 | $276,901,131 | $240,522,148 | $171,303,567 | $176,540,871 | ||||||||||||||||||||||||||
Undistributed/Accumulated Net Investment Income (Loss) | $491,073 | ($538,825 | ) | $4,097,742 | $1,259,430 | $4,857,534 | $2,216,343 |
(1) | Unaudited. |
See Notes to Financial Statements
B-11
PACIFIC LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
Six-Month Period Ended September 30, 2014 (1) | Year Ended March 31, 2014 | Six-Month Period Ended September 30, 2014 (1) | Year Ended March 31, 2014 | Six-Month Period Ended September 30, 2014 (1) | Year Ended March 31, 2014 | |||||||||||||||||||||||||||
PL Currency Strategies Fund | PL Global Absolute Return Fund | PL Precious Metals Fund | ||||||||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||||||
Net investment income (loss) | ($546,794 | ) | ($882,585 | ) | $4,624,751 | $6,710,785 | ($88,842 | ) | $226,549 | |||||||||||||||||||||||
Net realized gain (loss) | 8,095,931 | (5,197,176 | ) | 1,296,716 | (10,735,110 | ) | (18,017,730 | ) | (10,458,973 | ) | ||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) | 2,973,321 | (2,107,085 | ) | 3,055,436 | (864,055 | ) | 20,328,153 | (11,762,894 | ) | |||||||||||||||||||||||
Net Increase (Decrease) in Net Assets | 10,522,458 | (8,186,846 | ) | 8,976,903 | (4,888,380 | ) | 2,221,581 | (21,995,318 | ) | |||||||||||||||||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||||||||
Net investment income - Class P | — | (4,034,980 | ) | — | (3,863,039 | ) | — | (451,925 | ) | |||||||||||||||||||||||
Net realized gains - Class P | — | — | — | (269,888 | ) | — | — | |||||||||||||||||||||||||
Net Decrease from Dividends and | — | (4,034,980 | ) | — | (4,132,927 | ) | — | (451,925 | ) | |||||||||||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||||||||||
Proceeds from sale of shares - Class P | 60,104,733 | 25,560,571 | 8,189,076 | 40,317,659 | 5,310,973 | 42,913,086 | ||||||||||||||||||||||||||
Dividends and distribution reinvestments - Class P | — | 4,034,980 | — | 4,132,927 | — | 451,925 | ||||||||||||||||||||||||||
Cost of shares repurchased - Class P | (4,399,070 | ) | (4,993,288 | ) | (35,435,776 | ) | (8,994,814 | ) | (54,009,625 | ) | (2,466,278 | ) | ||||||||||||||||||||
Net Increase (Decrease) in Net Assets from | 55,705,663 | 24,602,263 | (27,246,700 | ) | 35,455,772 | (48,698,652 | ) | 40,898,733 | ||||||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | 66,228,121 | 12,380,437 | (18,269,797 | ) | 26,434,465 | (46,477,071 | ) | 18,451,490 | ||||||||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||||||
Beginning of Year or Period | 131,023,115 | 118,642,678 | �� | 198,359,795 | 171,925,330 | 84,402,245 | 65,950,755 | |||||||||||||||||||||||||
End of Year or Period | $197,251,236 | $131,023,115 | $180,089,998 | $198,359,795 | $37,925,174 | $84,402,245 | ||||||||||||||||||||||||||
Undistributed/Accumulated Net Investment Income (Loss) | ($5,349,743 | ) | ($4,802,949 | ) | $3,137,423 | ($1,487,328 | ) | ($275,716 | ) | ($186,874 | ) |
(1) | Unaudited. |
See Notes to Financial Statements
B-12
PACIFIC LIFE FUNDS
FOR THE SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2014 (Unaudited)
PL Inflation Managed Fund | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net increase in net assets from operations | $4,055,629 | |||||||
Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities: | (79,592,853 | ) | ||||||
Proceeds from disposition of long-term securities | 112,309,307 | |||||||
Proceeds from securities sold short | 15,538,998 | |||||||
Purchases to cover securities sold short | (15,527,251 | ) | ||||||
Purchases of short-term securities, net | (5,333,904 | ) | ||||||
Increase in swap premiums | 12,340 | |||||||
Increase in dividends and interest receivable | (101,588 | ) | ||||||
Increase in receivable for securities sold | (7,325,365 | ) | ||||||
Increase in receivable due from adviser | (775 | ) | ||||||
Decrease in prepaid expenses and other assets | 1,216 | |||||||
Decrease in variation margin | 44,886 | |||||||
Increase in payable for securities purchased | 1,758,214 | |||||||
Increase in payable for swap agreements | 298 | |||||||
Increase in payable due to brokers | 1,061,000 | |||||||
Decrease in accrued advisory fees | (9,623 | ) | ||||||
Decrease in accrued administration fees | (3,609 | ) | ||||||
Decrease in accrued support services expenses | (3,956 | ) | ||||||
Decrease in accrued custodian fees and expenses | (2,450 | ) | ||||||
Decrease in accrued transfer agency out-of-pocket expenses | (3,425 | ) | ||||||
Decrease in accrued legal, audit and tax service fees | (5,295 | ) | ||||||
Increase in accrued trustees’ fees and expenses and deferred compensation | 130 | |||||||
Decrease in accrued other payables | (9,835 | ) | ||||||
Change in net unrealized depreciation on investment securities | 1,804,093 | |||||||
Change in net unrealized depreciation on swaps | 483,350 | |||||||
Change in net unrealized depreciation on written options | 85,310 | |||||||
Change in net unrealized appreciation on foreign currencies | (1,402,310 | ) | ||||||
Net realized gain on investment securities | (753,556 | ) | ||||||
Net realized gain on closed short positions | (11,747 | ) | ||||||
Net realized loss on swaps | 59,489 | |||||||
Net realized gain on written options | (165,031 | ) | ||||||
Net realized gain on foreign currency | (784,224 | ) | ||||||
Net amortization on investments | 515,841 | |||||||
Net cash provided by operating activities | 26,693,304 | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from shares sold | 10,992,871 | |||||||
Payment of shares redeemed | (69,536,322 | ) | ||||||
Increase in payable for sale-buyback financing transactions | 31,452,211 | |||||||
Net cash used in financing activities | (27,091,240 | ) | ||||||
NET DECREASE IN CASH AND FOREIGN CURRENCY | (397,936 | ) | ||||||
CASH AND FOREIGN CURRENCY: | ||||||||
Beginning of Period | 808,866 | |||||||
End of Period | $410,930 |
(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. Interest paid by the PL Inflation Managed Fund was $19,717. |
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:
| Selected Per Share Data | Ratios to Average Net Assets | Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||||||||||||||||||||
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 | Net Investment Income | Capital Gains | Total | Net Asset Value, End of Year or Period | Expenses Before Reductions (3) | Expenses After Reductions (3), (4) | Net Investment Income (Loss) (3) | Total Returns (5) | Net Assets, End of Year or Period (in thousands) | Portfolio Turnover Rates | ||||||||||||||||||||||||||||||||||||
PL Floating Rate Loan Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (6) | $10.05 | $0.18 | ($0.16 | ) | $0.02 | $— | $— | $— | $10.07 | 1.02% | 0.80% | 3.52% | 0.20 | % | $128,707 | 18 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 10.24 | 0.38 | (0.04 | ) | 0.34 | (0.38 | ) | (0.15 | ) | (0.53 | ) | 10.05 | 1.02% | 0.80% | 3.73% | 3.39 | % | 123,116 | 73 | % | ||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 10.10 | 0.46 | 0.18 | 0.64 | (0.47 | ) | (0.03 | ) | (0.50 | ) | 10.24 | 1.03% | 0.80% | 4.45% | 6.40 | % | 110,204 | 94 | % | |||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.12 | 0.43 | (0.06 | ) | 0.37 | (0.39 | ) | — | (0.39 | ) | 10.10 | 1.04% | 0.80% | 4.33% | 3.80 | % | 112,088 | 45 | % | |||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 9.88 | 0.34 | 0.19 | 0.53 | (0.29 | ) | — | (0.29 | ) | 10.12 | 1.22% | 0.90% | 4.29% | 5.51 | % | 86,066 | 92 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 8.18 | 0.45 | 1.70 | 2.15 | (0.45 | ) | — | (0.45 | ) | 9.88 | 1.54% | 1.30% | 4.78% | 26.70 | % | 53,122 | 118 | % | ||||||||||||||||||||||||||||||||
PL Inflation Managed Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (6) | $8.84 | $0.17 | ($0.01 | ) | $0.16 | $— | $— | $— | $9.00 | 0.65% | 0.57% | 3.73% | 1.81 | % | $131,010 | 42 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 9.73 | 0.07 | (0.78 | ) | (0.71 | ) | (0.04 | ) | (0.14 | ) | (0.18 | ) | 8.84 | 0.64% | 0.56% | 0.83% | (7.40 | %) | 185,765 | 36 | % | |||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 10.79 | 0.21 | 0.52 | 0.73 | (0.51 | ) | (1.28 | ) | (1.79 | ) | 9.73 | 0.69% | 0.58% | 1.95% | 6.79 | % | 164,281 | 111 | % | |||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.53 | 0.31 | 0.85 | 1.16 | (0.40 | ) | (0.50 | ) | (0.90 | ) | 10.79 | 0.67% | 0.56% | 2.83% | 11.11 | % | 287,956 | 372 | % | |||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.10 | 0.24 | 0.61 | 0.85 | (0.21 | ) | (0.21 | ) | (0.42 | ) | 10.53 | 0.82% | 0.64% | 2.31% | 8.56 | % | 229,356 | 323 | % | |||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 9.59 | 0.29 | 0.62 | 0.91 | (0.40 | ) | — | (0.40 | ) | 10.10 | 1.21% | 0.95% | 2.90% | 9.68 | % | 149,453 | 300 | % | ||||||||||||||||||||||||||||||||
PL Managed Bond Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (6) | $10.76 | $0.07 | $0.17 | $0.24 | $— | $— | $— | $11.00 | 0.62% | 0.55% | 1.24% | 2.23 | % | $657,547 | 282 | % | ||||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 11.11 | 0.13 | (0.27 | ) | (0.14 | ) | (0.15 | ) | (0.06 | ) | (0.21 | ) | 10.76 | 0.63% | 0.55% | 1.16% | (1.22 | %) | 579,753 | 530 | % | |||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 10.86 | 0.20 | 0.55 | 0.75 | (0.35 | ) | (0.15 | ) | (0.50 | ) | 11.11 | 0.66% | 0.56% | 1.75% | 6.85 | % | 565,285 | 495 | % | |||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.75 | 0.25 | 0.15 | 0.40 | (0.29 | ) | — | (0.29 | ) | 10.86 | 0.67% | 0.55% | 2.33% | 4.02 | % | 486,215 | 519 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.75 | 0.24 | 0.43 | 0.67 | (0.30 | ) | (0.37 | ) | (0.67 | ) | 10.75 | 0.82% | 0.63% | 2.16% | 6.31 | % | 378,982 | 502 | % | |||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 9.70 | 0.30 | 1.48 | 1.78 | (0.50 | ) | (0.23 | ) | (0.73 | ) | 10.75 | 1.22% | 0.95% | 2.86% | 18.68 | % | 235,957 | 352 | % | |||||||||||||||||||||||||||||||
PL Short Duration Bond Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (6) | $10.05 | $0.06 | ($0.02 | ) | $0.04 | $— | $— | $— | $10.09 | 0.64% | 0.55% | 1.19% | 0.40 | % | $247,788 | 26 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 10.12 | 0.10 | (0.04 | ) | 0.06 | (0.13 | ) | — | (0.13 | ) | 10.05 | 0.64% | 0.55% | 1.02% | 0.64 | % | 229,189 | 43 | % | |||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 10.07 | 0.11 | 0.08 | 0.19 | (0.14 | ) | (0.00 | )(7) | (0.14 | ) | 10.12 | 0.65% | 0.55% | 1.08% | 1.86 | % | 223,601 | 63 | % | |||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.04 | 0.11 | 0.05 | 0.16 | (0.12 | ) | (0.01 | ) | (0.13 | ) | 10.07 | 0.68% | 0.55% | 1.14% | 1.62 | % | 155,368 | 150 | % | |||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.00 | 0.10 | 0.06 | 0.16 | (0.08 | ) | (0.04 | ) | (0.12 | ) | 10.04 | 0.81% | 0.64% | 1.00% | 1.57 | % | 121,133 | 196 | % | |||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 9.69 | 0.18 | 0.33 | 0.51 | (0.20 | ) | — | (0.20 | ) | 10.00 | 1.22% | 0.95% | 1.84% | 5.27 | % | 75,674 | 167 | % | ||||||||||||||||||||||||||||||||
PL Emerging Markets Debt Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (6) | $9.69 | $0.26 | ($0.20 | ) | $0.06 | $— | $— | $— | $9.75 | 1.05% | 0.94% | 5.15% | 0.52 | % | $164,119 | 53 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 10.53 | 0.47 | (0.90 | ) | (0.43 | ) | (0.32 | ) | (0.09 | ) | (0.41 | ) | 9.69 | 1.06% | 0.94% | 4.71% | (3.92 | %) | 130,516 | 116 | % | |||||||||||||||||||||||||||||
6/29/2012 - 3/31/2013 | 10.00 | 0.37 | 0.46 | 0.83 | (0.27 | ) | (0.03 | ) | (0.30 | ) | 10.53 | 1.17% | 0.94% | 4.67% | 8.24 | % | 85,846 | 61 | % | |||||||||||||||||||||||||||||||
PL Comstock Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (6) | $17.61 | $0.11 | $0.82 | $0.93 | $— | $— | $— | $18.54 | 0.96% | 0.89% | 1.19% | 5.28 | % | $267,130 | 10 | % | ||||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 14.40 | 0.25 | 3.11 | 3.36 | (0.15 | ) | — | (0.15 | ) | 17.61 | 0.97% | 0.89% | 1.53% | 23.36 | % | 308,598 | 14 | % | ||||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 12.47 | 0.19 | 1.91 | 2.10 | (0.17 | ) | — | (0.17 | ) | 14.40 | 0.97% | 0.89% | 1.51% | 16.96 | % | 261,671 | 35 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 12.13 | 0.17 | 0.32 | 0.49 | (0.15 | ) | — | (0.15 | ) | 12.47 | 0.99% | 0.89% | 1.47% | 4.22 | % | 207,330 | 24 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.69 | 0.13 | 1.41 | 1.54 | (0.10 | ) | — | (0.10 | ) | 12.13 | 1.13% | 0.99% | 1.16% | 14.55 | % | 166,465 | 31 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 6.95 | 0.09 | 3.74 | 3.83 | (0.09 | ) | — | (0.09 | ) | 10.69 | 1.51% | 1.30% | 0.93% | 55.34 | % | 128,169 | 28 | % | ||||||||||||||||||||||||||||||||
PL Growth Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (6) | $17.33 | $0.02 | $0.65 | $0.67 | $— | $— | $— | $18.00 | 0.76% | 0.70% | 0.20% | 3.92 | % | $133,264 | 18 | % | ||||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 13.93 | 0.03 | 3.47 | 3.50 | (0.10 | ) | — | (0.10 | ) | 17.33 | 0.79% | 0.70% | 0.20% | 25.15 | % | 101,285 | 76 | % | ||||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 13.12 | 0.08 | 0.90 | 0.98 | (0.17 | ) | — | (0.17 | ) | 13.93 | 0.86% | 0.70% | 0.63% | 7.53 | % | 48,611 | 72 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 12.42 | 0.06 | 0.71 | 0.77 | (0.07 | ) | — | (0.07 | ) | 13.12 | 0.85% | 0.70% | 0.54% | 6.26 | % | 108,340 | 84 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 11.21 | 0.07 | 1.14 | 1.21 | — | — | — | 12.42 | 0.95% | 0.79% | 0.58% | 10.79 | % | 115,576 | 83 | % | ||||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 7.74 | 0.02 | 3.60 | 3.62 | (0.15 | ) | — | (0.15 | ) | 11.21 | 1.37% | 1.10% | 0.19% | 47.26 | % | 89,219 | 60 | % | ||||||||||||||||||||||||||||||||
PL Large-Cap Growth Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (6) | $10.28 | ($— | )(7) | $0.52 | $0.52 | $— | $— | $— | $10.80 | 0.96% | 0.86% | (0.07%) | 5.06 | % | $186,093 | 55 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 10.40 | (0.01 | ) | 2.41 | 2.40 | (0.02 | ) | (2.50 | ) | (2.52 | ) | 10.28 | 0.97% | 0.84% | (0.06%) | 23.58 | % | 172,613 | 163 | % | ||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 10.30 | 0.03 | 0.70 | 0.73 | — | (0.63 | ) | (0.63 | ) | 10.40 | 0.99% | 0.81% | 0.31% | 7.66 | % | 142,398 | 131 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 9.23 | (0.02 | ) | 1.25 | 1.23 | — | (0.16 | ) | (0.16 | ) | 10.30 | 1.00% | 0.88% | (0.26%) | 13.65 | % | 129,222 | 76 | % | |||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 7.71 | (0.01 | ) | 1.53 | 1.52 | — | — | — | 9.23 | 1.12% | 0.95% | (0.11%) | 19.72 | % | 99,101 | 102 | % | |||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 5.44 | (0.03 | ) | 2.30 | 2.27 | — | — | — | 7.71 | 1.59% | 1.28% | (0.38%) | 41.73 | % | 61,106 | 116 | % |
See Notes to Financial Statements | See explanation of references if any, on page 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:
| Selected Per Share Data | Ratios to Average Net Assets | Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||||||||||||||||||||
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 | Net Investment Income | Capital Gains | Total | Net Asset Value, End of Year or Period | Expenses Before Reductions (3) | Expenses After Reductions (3), (4) | Net Investment Income (Loss) (3) | Total Returns (5) | Net Assets, End of Year or Period (in thousands) | Portfolio Turnover Rates | ||||||||||||||||||||||||||||||||||||
PL Large-Cap Value Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (6) | $16.71 | $0.12 | $0.71 | $0.83 | $— | $— | $— | $17.54 | 0.86% | 0.80% | 1.39% | 4.97 | % | $342,335 | 9 | % | ||||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 13.96 | 0.36 | 2.62 | 2.98 | (0.23 | ) | — | (0.23 | ) | 16.71 | 0.86% | 0.80% | 2.33% | 21.41 | % | 380,372 | 13 | % | ||||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 12.31 | 0.23 | 1.66 | 1.89 | (0.24 | ) | — | (0.24 | ) | 13.96 | 0.87% | 0.80% | 1.80% | 15.54 | % | 324,085 | 26 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.59 | 0.22 | 0.71 | 0.93 | (0.21 | ) | — | (0.21 | ) | 12.31 | 0.89% | 0.80% | 1.96% | 8.21 | % | 262,917 | 20 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 10.42 | 0.16 | 1.15 | 1.31 | (0.14 | ) | — | (0.14 | ) | 11.59 | 1.01% | 0.89% | 1.56% | 12.69 | % | 228,436 | 19 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 7.35 | 0.14 | 3.07 | 3.21 | (0.14 | ) | — | (0.14 | ) | 10.42 | 1.38% | 1.20% | 1.52% | 43.79 | % | 162,312 | 16 | % | ||||||||||||||||||||||||||||||||
PL Main Street Core Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (6) | $14.85 | $0.08 | $0.82 | $0.90 | $— | $— | $— | $15.75 | 0.66% | 0.60% | 1.06% | 6.06 | % | $252,767 | 17 | % | ||||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 12.20 | 0.13 | 2.65 | 2.78 | (0.13 | ) | — | (0.13 | ) | 14.85 | 0.67% | 0.60% | 0.99% | 22.84 | % | 257,575 | 66 | % | ||||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 11.26 | 0.14 | 0.96 | 1.10 | (0.16 | ) | — | (0.16 | ) | 12.20 | 0.68% | 0.60% | 1.21% | 9.93 | % | 212,428 | 60 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.13 | 0.10 | 1.11 | 1.21 | (0.08 | ) | — | (0.08 | ) | 11.26 | 0.70% | 0.60% | 1.00% | 12.12 | % | 193,538 | 48 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 9.00 | 0.09 | 1.10 | 1.19 | (0.06 | ) | — | (0.06 | ) | 10.13 | 0.83% | 0.70% | 0.93% | 13.28 | % | 157,890 | 58 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 6.11 | 0.07 | 2.89 | 2.96 | (0.07 | ) | — | (0.07 | ) | 9.00 | 1.23% | 1.00% | 0.89% | 48.57 | % | 146,028 | 130 | % | ||||||||||||||||||||||||||||||||
PL Mid-Cap Equity Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (6) | $12.84 | $0.02 | ($0.04 | ) | ($0.02 | ) | $— | $— | $— | $12.82 | 0.86% | 0.80% | 0.34% | (0.16 | %) | $203,446 | 77 | % | ||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 11.00 | 0.04 | 2.84 | 2.88 | (0.06 | ) | (0.98 | ) | (1.04 | ) | 12.84 | 0.87% | 0.80% | 0.36% | 26.82 | % | 171,357 | 114 | % | |||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 10.29 | 0.06 | 0.72 | 0.78 | (0.07 | ) | — | (0.07 | ) | 11.00 | 0.90% | 0.80% | 0.65% | 7.63 | % | 138,416 | 191 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.46 | 0.05 | (0.18 | ) | (0.13 | ) | (0.04 | ) | — | (0.04 | ) | 10.29 | 0.89% | 0.80% | 0.51% | (1.17 | %) | 165,168 | 102 | % | ||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 8.66 | 0.08 | 1.79 | 1.87 | (0.07 | ) | — | (0.07 | ) | 10.46 | 1.02% | 0.89% | 0.87% | 21.70 | % | 135,755 | 87 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 5.33 | 0.03 | 3.34 | 3.37 | (0.04 | ) | — | (0.04 | ) | 8.66 | 1.41% | 1.20% | 0.44% | 63.29 | % | 101,650 | 74 | % | ||||||||||||||||||||||||||||||||
PL Mid-Cap Growth Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (6) | $8.17 | $— | (7) | $0.06 | $0.06 | $— | $— | $— | $8.23 | 0.91% | 0.80% | 0.08% | 0.73 | % | $82,365 | 17 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 8.58 | (0.01 | ) | 1.93 | 1.92 | (0.01 | ) | (2.32 | ) | (2.33 | ) | 8.17 | 0.93% | 0.83% | (0.09%) | 23.39 | % | 90,804 | 135 | % | ||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 8.87 | 0.05 | (0.03 | ) | 0.02 | (0.02 | ) | (0.29 | ) | (0.31 | ) | 8.58 | 1.00% | 0.85% | 0.60% | 0.61 | % | 61,557 | 48 | % | ||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.28 | (0.02 | ) | (0.28 | ) | (0.30 | ) | (0.05 | ) | (1.06 | ) | (1.11 | ) | 8.87 | 0.98% | 0.85% | (0.21%) | (1.08 | %) | 73,586 | 27 | % | ||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 8.41 | 0.02 | 2.83 | 2.85 | (0.02 | ) | (0.96 | ) | (0.98 | ) | 10.28 | 1.17% | 0.95% | 0.24% | 35.16 | % | 64,476 | 44 | % | |||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 4.98 | (0.03 | ) | 3.56 | 3.53 | — | (0.10 | ) | (0.10 | ) | 8.41 | 1.53% | 1.25% | (0.42%) | 70.89 | % | 54,994 | 32 | % | |||||||||||||||||||||||||||||||
PL Small-Cap Growth Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (6) | $15.54 | ($0.03 | ) | ($0.90 | ) | ($0.93 | ) | $— | $— | $— | $14.61 | 0.82% | 0.75% | (0.46)% | (5.99 | %) | $77,766 | 176 | % | |||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 13.29 | (0.04 | ) | 2.67 | 2.63 | (0.02 | ) | (0.36 | ) | (0.38 | ) | 15.54 | 0.83% | 0.75% | (0.28%) | 19.90 | % | 59,921 | 84 | % | ||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 11.86 | 0.03 | 1.40 | 1.43 | — | — | — | 13.29 | 0.90% | 0.75% | 0.21% | 12.06 | % | 50,898 | 92 | % | ||||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.90 | (0.03 | ) | (0.01 | ) | (0.04 | ) | — | — | — | 11.86 | 0.93% | 0.75% | (0.31%) | (0.34 | %) | 36,370 | 67 | % | |||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 9.41 | (0.06 | ) | 2.55 | 2.49 | — | — | — | 11.90 | 1.11% | 0.84% | (0.63%) | 26.46 | % | 32,355 | 86 | % | |||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 5.88 | (0.06 | ) | 3.59 | 3.53 | — | — | — | 9.41 | 1.56% | 1.15% | (0.81%) | 60.03 | % | 25,691 | 88 | % | |||||||||||||||||||||||||||||||||
PL Small-Cap Value Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (6) | $13.55 | $0.05 | ($0.70 | ) | ($0.65 | ) | $— | $— | $— | $12.90 | 0.96% | 0.90% | 0.67% | (4.80 | %) | $129,757 | 116 | % | ||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 12.15 | 0.20 | 1.98 | 2.18 | (0.16 | ) | (0.62 | ) | (0.78 | ) | 13.55 | 0.97% | 0.90% | 1.52% | 18.13 | % | 147,702 | 41 | % | |||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 10.58 | 0.22 | 1.52 | 1.74 | (0.17 | ) | — | (0.17 | ) | 12.15 | 1.00% | 0.90% | 2.08% | 16.72 | % | 125,647 | 38 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 10.60 | 0.16 | (0.05 | ) | 0.11 | (0.13 | ) | — | (0.13 | ) | 10.58 | 1.02% | 0.90% | 1.59% | 1.19 | % | 86,152 | 21 | % | |||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 8.57 | 0.16 | 1.98 | 2.14 | (0.11 | ) | — | (0.11 | ) | 10.60 | 1.13% | 0.97% | 1.71% | 25.11 | % | 76,247 | 31 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 5.49 | 0.13 | 3.06 | 3.19 | (0.11 | ) | — | (0.11 | ) | 8.57 | 1.58% | 1.30% | 1.82% | 58.28 | % | 38,173 | 32 | % | ||||||||||||||||||||||||||||||||
PL Real Estate Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (6) | $14.19 | $0.09 | $0.48 | $0.57 | $— | $— | $— | $14.76 | 1.10% | 1.05% | 1.23% | 4.02 | % | $45,313 | 17 | % | ||||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 13.67 | 0.21 | 0.54 | 0.75 | (0.23 | ) | — | (0.23 | ) | 14.19 | 1.12% | 1.05% | 1.52% | 5.61 | % | 73,828 | 18 | % | ||||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 12.59 | 0.17 | 1.08 | 1.25 | (0.17 | ) | — | (0.17 | ) | 13.67 | 1.16% | 1.05% | 1.35% | 9.98 | % | 60,138 | 23 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 11.46 | 0.13 | 1.08 | 1.21 | (0.08 | ) | — | (0.08 | ) | 12.59 | 1.18% | 1.05% | 1.13% | 10.62 | % | 52,679 | 24 | % | ||||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 9.24 | 0.08 | 2.23 | 2.31 | (0.09 | ) | — | (0.09 | ) | 11.46 | 1.34% | 1.14% | 0.77% | 25.16 | % | 41,860 | 32 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 4.60 | 0.12 | 4.64 | 4.76 | (0.12 | ) | — | (0.12 | ) | 9.24 | 1.76% | 1.45% | 1.68% | 104.32 | % | 36,352 | 27 | % | ||||||||||||||||||||||||||||||||
PL Emerging Markets Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (6) | $14.75 | $0.10 | $0.50 | $0.60 | $— | $— | $— | $15.35 | 1.18% | 0.95% | 1.25% | 4.07 | % | $159,707 | 13 | % | ||||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 14.22 | 0.09 | 0.83 | 0.92 | (0.10 | ) | (0.29 | ) | (0.39 | ) | 14.75 | 1.27% | 0.95% | 0.59% | 6.43 | % | 153,333 | 31 | % | |||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 13.55 | 0.08 | 0.68 | 0.76 | (0.09 | ) | — | (0.09 | ) | 14.22 | 1.36% | 0.95% | 0.62% | 5.60 | % | 110,810 | 40 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 14.68 | 0.14 | (0.95 | ) | (0.81 | ) | (0.07 | ) | (0.25 | ) | (0.32 | ) | 13.55 | 1.49% | 0.95% | 1.09% | (5.15 | %) | 85,483 | 30 | % | |||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 12.19 | 0.11 | 2.64 | 2.75 | (0.26 | ) | — | (0.26 | ) | 14.68 | 1.56% | 1.04% | 0.80% | 22.53 | % | 64,270 | 46 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 6.54 | 0.06 | 5.66 | 5.72 | (0.07 | ) | — | (0.07 | ) | 12.19 | 2.15% | 1.35% | 0.57% | 87.45 | % | 47,714 | 55 | % |
See Notes to Financial Statements | See explanation of references if any, on page 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:
| Selected Per Share Data | Ratios to Average Net Assets | Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||||||||||||||||||||
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 | Net Investment Income | Capital Gains | Total | Net Asset Value, End of Year or Period | Expenses Before Reductions (3) | Expenses After Reductions (3), (4) | Net Investment Income (Loss) (3) | Total Returns (5) | Net Assets, End of Year or Period (in thousands) | Portfolio Turnover Rates | ||||||||||||||||||||||||||||||||||||
PL International Large-Cap Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (6) | $18.46 | $0.22 | ($0.43 | ) | ($0.21 | ) | $— | $— | $— | $18.25 | 1.10% | 1.00% | 2.33% | (1.14 | %) | $276,901 | 15 | % | ||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 16.48 | 0.22 | 1.97 | 2.19 | (0.21 | ) | — | (0.21 | ) | 18.46 | 1.10% | 1.00% | 1.23% | 13.28 | % | 240,522 | 14 | % | ||||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 15.12 | 0.23 | 1.40 | 1.63 | (0.27 | ) | — | (0.27 | ) | 16.48 | 1.13% | 1.00% | 1.55% | 10.88 | % | 198,963 | 28 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 15.37 | 0.22 | (0.30 | ) | (0.08 | ) | (0.17 | ) | — | (0.17 | ) | 15.12 | 1.17% | 1.00% | 1.52% | (0.32 | %) | 203,944 | 24 | % | ||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 13.83 | 0.16 | 1.52 | 1.68 | (0.14 | ) | — | (0.14 | ) | 15.37 | 1.30% | 1.09% | 1.16% | 12.36 | % | 138,033 | 34 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 9.17 | 0.16 | 4.64 | 4.80 | (0.14 | ) | — | (0.14 | ) | 13.83 | 1.72% | 1.40% | 1.26% | 52.64 | % | 108,002 | 25 | % | ||||||||||||||||||||||||||||||||
PL International Value Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (6) | $10.33 | $0.16 | ($0.55 | ) | ($0.39 | ) | $— | $— | $— | $9.94 | 0.90% | 0.80% | 3.04% | (3.78 | %) | $171,304 | 44 | % | ||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 9.10 | 0.39 | 1.08 | 1.47 | (0.24 | ) | — | (0.24 | ) | 10.33 | 0.91% | 0.80% | 3.89% | 16.15 | % | 176,541 | 54 | % | ||||||||||||||||||||||||||||||||
4/1/2012 - 3/31/2013 | 8.62 | 0.20 | 0.51 | 0.71 | (0.23 | ) | — | (0.23 | ) | 9.10 | 0.94% | 0.80% | 2.30% | 8.26 | % | 146,550 | 66 | % | ||||||||||||||||||||||||||||||||
4/1/2011 - 3/31/2012 | 9.51 | 0.26 | (0.89 | ) | (0.63 | ) | (0.26 | ) | — | (0.26 | ) | 8.62 | 1.02% | 0.80% | 3.06% | (6.20 | %) | 111,119 | 63 | % | ||||||||||||||||||||||||||||||
4/1/2010 - 3/31/2011 | 9.19 | 0.18 | 0.35 | 0.53 | (0.21 | ) | — | (0.21 | ) | 9.51 | 1.14% | 0.90% | 2.01% | 5.99 | % | 90,242 | 150 | % | ||||||||||||||||||||||||||||||||
4/1/2009 - 3/31/2010 | 6.14 | 0.19 | 3.00 | 3.19 | (0.14 | ) | — | (0.14 | ) | 9.19 | 1.56% | 1.20% | 2.28% | 52.10 | % | 86,284 | 60 | % | ||||||||||||||||||||||||||||||||
PL Currency Strategies Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (6) | $9.41 | ($0.03 | ) | $0.68 | $0.65 | $— | $— | $— | $10.06 | 0.85% | 0.85% | (0.70%) | 6.91 | % | $197,251 | 105 | % | |||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 10.32 | (0.07 | ) | (0.52 | ) | (0.59 | ) | (0.32 | ) | — | (0.32 | ) | 9.41 | 0.89% | 0.85% | (0.68%) | (5.98 | %) | 131,023 | 49 | % | |||||||||||||||||||||||||||||
12/7/2012 - 3/31/2013 | 10.00 | (0.02 | ) | 0.34 | 0.32 | — | — | — | 10.32 | 0.94% | 0.85% | (0.69%) | 3.20 | % | 118,643 | 49 | % | |||||||||||||||||||||||||||||||||
PL Global Absolute Return Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (6) | $9.69 | $0.24 | $0.22 | $0.46 | $— | $— | $— | $10.15 | 1.23% | 1.11% | 4.75% | 4.75 | % | $180,090 | 73 | % | ||||||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 10.19 | 0.36 | (0.65 | ) | (0.29 | ) | (0.20 | ) | (0.01 | ) | (0.21 | ) | 9.69 | 1.36% | 1.18% | 3.64% | (2.80 | %) | 198,360 | 115 | % | |||||||||||||||||||||||||||||
12/7/2012 - 3/31/2013 | 10.00 | 0.07 | 0.13 | 0.20 | (0.01 | ) | — | (0.01 | ) | 10.19 | 1.20% | 1.06% | 2.25% | 1.96 | % | 171,925 | 38 | % | ||||||||||||||||||||||||||||||||
PL Precious Metals Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/2014 - 9/30/2014 (6) | $5.72 | ($0.01 | ) | ($0.33 | ) | ($0.34 | ) | $— | $— | $— | $5.38 | 0.98% | 0.89% | (0.22%) | (5.94 | %) | $37,925 | 23 | % | |||||||||||||||||||||||||||||||
4/1/2013 - 3/31/2014 | 8.22 | 0.02 | (2.49 | ) | (2.47 | ) | (0.03 | ) | — | (0.03 | ) | 5.72 | 0.99% | 0.88% | 0.30% | (29.98 | %) | 84,402 | 12 | % | ||||||||||||||||||||||||||||||
12/7/2012 - 3/31/2013 | 10.00 | 0.01 | �� | (1.79 | ) | (1.78 | ) | (0.00 | )(7) | — | (0.00 | )(7) | 8.22 | 1.12% | 0.88% | 0.31% | (17.79 | %) | 65,951 | 3 | % |
(1) | All the funds presented in these financial statements 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. |
(2) | Net investment income (loss) per share has been calculated using the average shares method. |
(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 and adviser expense reimbursements as discussed in Note 6 and Note 7B, respectively, in Notes to the Financial Statements. |
(5) | The total returns include reinvestment of all dividends and capital gains 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. |
(6) | Unaudited. |
(7) | Amount represents less than $0.005 per share. |
See Notes to Financial Statements |
B-16
PACIFIC LIFE FUNDS
(Unaudited)
1. ORGANIZATION
The 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, 2014, the Trust was comprised of thirty-three separate funds, twenty-one of which are presented in these financial statements (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 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, PL International Value Fund, PL Currency Strategies Fund, PL Global Absolute Return Fund, and PL Precious Metals 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”), the PL Diversified Alternatives Fund, the Adviser and certain of its affiliates can invest in Class P shares of the PL Underlying Funds.
There is a separate semi-annual report containing the financial statements for the Portfolio Optimization Funds and the PL Diversified Alternatives Fund, which is available without charge. For information on how to obtain the semi-annual report for the Portfolio Optimization Funds and the PL Diversified Alternatives Fund, see the Where to Go for More Information section of this report on page D-8.
2. SIGNIFICANT ACCOUNTING POLICIES
The Funds are investment companies and, accordingly, follow the investment company accounting and reporting guidance under U.S. generally accepted accounting principles (“U.S. GAAP”). 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 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-backed and asset-backed securities are recorded as interest income.
B. DISTRIBUTIONS TO SHAREHOLDERS
Each Fund presented in these financial statements distributes 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, denominated 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
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.
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.
3. VALUATION AND FAIR VALUE MEASUREMENTS
A. VALUATION POLICY
The Trust’s Board of Trustees (the “Board”) has adopted a policy (“Valuation Policy”) for determining the value of the Trust’s investments each business day. Under the Valuation Policy, the Board has delegated certain functions to the Trustee Valuation Committee (“TVC”) and/or the Valuation Oversight Committee (“VOC”) or its delegate to determine the fair value of certain investments. Each valuation committee that values each Fund’s investments, which includes using third party pricing services, does so in accordance with the Valuation Policy. Notes 3B and 3C below describe in greater detail the methodologies used to value each Fund’s investments.
B. NET ASSET VALUE
Each Fund of the Trust presented in these financial statements is divided into shares. The price per share 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, subtracting a Fund’s liabilities, and dividing by the total number of shares outstanding.
Each Fund’s NAV is calculated once per day, every day the New York Stock Exchange (“NYSE”) is open, including days when foreign markets and/or bond 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 close of the NYSE on a particular day will not normally be used to retroactively adjust the price of an investment for that same business 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 investments 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 and other 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 shares of those Funds.
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.
Short-Term Investments
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 the 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 funds), the Trust uses the last reported sale price or official closing price from an exchange as of the time of the NYSE close and does 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
For foreign equity investments, the Trust generally uses the last reported sale price or official closing price from the principal foreign exchanges, which may be earlier than the NYSE close. The Trust then may adjust for market events occurring between the close of certain foreign exchanges and the NYSE close. The Trust has retained an independent statistical service approved by the Board to assist in determining the value of certain foreign equity investments. This service utilizes proprietary computer models based on historical performance of markets and other considerations to determine adjustments for market events. Quotations of foreign investments in foreign currencies and those valued using forward currency rates 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)
Exchange Traded Futures, Options and Swaps
Exchange traded futures, options and swaps are generally valued using the settlement price determined by the relevant exchange. Exchange traded futures, options and swaps for which no settlement price is 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.
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 from various observable market and other factors. Certain OTC swap agreements are valued using reference instruments and industry pricing models pursuant to the Valuation Policy. Forward foreign currency contracts are generally valued using the mean between broker-dealer bid and ask quotations, and foreign currency exchange rates gathered from leading market makers.
Domestic and Foreign Debt Investments
Debt investments are generally valued using the mean between bid and ask prices provided by approved pricing and quotation services, which are based upon evaluated prices determined from various observable market and other factors. Certain debt investments are valued by using a benchmark, matrix, or other pricing methodologies approved pursuant to the Valuation Policy.
Investment Values Determined by a Valuation Committee
The Valuation Policy includes methodologies approved for valuing investments in circumstances where market quotations are not readily available. In such circumstances, the Valuation Policy provides that the value of such investments may be determined in accordance with Board approved formulas and methodologies (“Alternate Valuation Methodologies”). Under the Valuation Policy these Alternate Valuation Methodologies may include, among others, the use of broker quotes, the use of purchase prices for initial public offerings, and benchmark and matrix pricing. In the event market quotations or Alternate Valuation Methodologies are not readily available or are determined to be unreliable, the value of the investments will be determined in good faith by the TVC, or determined by the VOC or its delegate pursuant to the Valuation Policy and then subsequently submitted for approval or ratification to either the TVC, or the Board. Valuations determined by the TVC or the VOC or its delegate 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 or values that would be obtained if a different valuation methodology had been used.
Market quotations are considered not readily available if: (i) the market quotations received are deemed unreliable or inaccurate, (ii) approved pricing services do not provide a valuation for a particular investment, or (iii) 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 Valuation Policy, the VOC determines the level in which each Fund’s investments are characterized. The VOC includes investment, legal and compliance members of the Trust’s Adviser, accounting members of the Trust’s Administrator (see Note 6), 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 Valuation Policy periodically (at least annually) to determine the appropriateness of the pricing methodologies used to value each Fund’s investments. The VOC also periodically evaluates how the Trust’s investments are characterized within the three-tier hierarchy and the appropriateness of third party pricing sources. The VOC also periodically (at least annually) conducts back-testing of the value of various Level 2 and Level 3 investments to evaluate the effectiveness of the pricing methodologies including the unobservable inputs used to value those investments. Such back-testing includes comparing Level 2 and Level 3 investment values to subsequently available exchange-traded prices, transaction prices, and/or observable vendor prices. All changes to the Valuation Policy are reported to the Board on a quarterly basis with material changes, as determined by the Trust’s CCO, requiring approval by the Board.
The inputs or methodologies used for characterizing each Fund’s investments within the three-tier hierarchy are not necessarily an indication of the relative risks associated with investing in those investments. 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. The Trust also discloses the amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. A reconciliation of Level 3 investments is presented only when a Fund had an amount of Level 3 investments at the beginning and/or end of the reporting period that was meaningful in relation to its net assets. The amounts and reasons for all transfers in and out of each level within the three-tier hierarchy are disclosed only when a Fund had an amount of total transfers during the reporting period that was meaningful in relation to its net assets as of the end of the reporting period. A summary of each Fund’s investments as of September 30, 2014 as categorized under the three-tier hierarchy of inputs, and the reconciliation of Level 3 investments and information on transfers in and out of each level, if applicable, can be found in the Notes to Schedule of Investments section of each Fund’s Schedule of Investments.
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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 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 registered 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 from market data sources. The models also take into consideration yield curves and data received from active market makers and inter-dealer brokers. Yield curves 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 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 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.
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Option Contracts
Exchange listed option 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 to exchange listed option 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 option contracts would be categorized as Level 2; otherwise the fair values would be categorized as Level 3. OTC option 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 option contracts would be categorized as Level 2; otherwise the fair values would be categorized as Level 3.
Forward Foreign Currency Contracts
Forward foreign currency contracts are fair valued using various inputs and techniques, which include broker-dealer quotations 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 or swap execution facility are fair valued based on quoted prices from the applicable exchange and are categorized as Level 2. 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 or swap execution facility are fair valued based on quoted prices from the applicable exchange and are categorized as Level 2. 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.
Total Return Swaps – Total return swaps that are actively traded and cleared on a securities exchange or swap execution facility are fair valued based on quoted prices from the applicable exchange and are categorized as Level 2. Total Return swaps traded over-the-counter are fair valued using pricing models that take into account among other factors, index spread curves, nominal values, modified duration values and cash flows. To the extent that these inputs are observable and timely, the fair values of total return swaps would be categorized as Level 2; otherwise the fair values would be categorized as Level 3.
Senior 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 categorized as Level 2.
Credit-Oriented Investments
For non-publicly traded instruments that represent debt to the Trust, the carrying amount approximates fair value due to the relatively short-term maturity of these financial instruments. The Trust may use market transactions for identical or similar instruments or a market yield approach, which utilizes expected future cash flows that are discounted using estimated current market rates. Discounted cash flow calculations may be adjusted to reflect current market conditions and/or the perceived credit risk of each Fund as applicable. Consideration may also include an evaluation of collateral. To the extent that these inputs are observable and timely, the fair values for credit-oriented investments are categorized as Level 2; otherwise the fair values would be categorized as Level 3.
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 the assets owned by each 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 each 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
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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 factors discussed in General Investment Risks above.
Debt Investments
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 debt investments. There is a risk that an issuer of a Fund’s 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. Debt investments may be affected by changes in interest rates. Debt investments with longer durations tend to be more sensitive to changes in interest rates, making them more volatile than debt investments with shorter durations or floating or adjustable interest rates. The value of debt investments may fall when interest rates rise. Given the historically low interest rate environment in the U.S., risks associated with rising interest rates are heightened. Certain monetary policies enacted by the Federal Reserve (“Fed”) can have a significant impact on the financial markets and the Trust. The Fed’s tapering of its monetary stimulus quantitative easing (“QE”) program, by gradually winding down its bond purchases, may result in periods of dramatic market volatility and may negatively impact the value of debt securities. Additionally, new regulations applicable to and changing business practices of broker-dealers that make markets in debt investments may result in those broker-dealers restricting their market making activities for certain debt investments, which may reduce the liquidity and increase the volatility of such debt investments.
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.
Senior Loan Participations and Assignments
Certain Funds may invest in Senior Loans of domestic or foreign corporations, partnerships and other entities (“Borrowers”), the interest rates of which float or adjust periodically based upon a specified adjustment schedule, benchmark indicator, or prevailing interest rates. 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, London Interbank Offered Rates (“LIBOR”) 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 Federal Deposit Insurance Corporation (“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, 2014, no participation interest in Senior Loans was held by any of the Funds presented in these financial statements.
Inflation-Indexed Bonds
Certain Funds may invest in inflation-indexed bonds. Inflation-indexed bonds are 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
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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 the Trust 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 debt and other mortgage-backed securities, the market value of IOs tends to move in the same direction as interest rates. As prepayments on the underlying mortgages of POs increase, the yields on POs increase. Payments received from IOs are 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, Treasury Notes, Treasury Bonds, and securities guaranteed by GNMA (or “Ginnie Mae”), are supported by the full faith and credit of the U.S. 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 U.S. 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 U.S. Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). FNMA and FHLMC are government-sponsored corporations, the common stocks of which are 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 U.S. 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 U.S. 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
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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 be required to pledge a portion of its assets to the broker as collateral for the borrowed securities. 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 enter into repurchase agreements with institutions that the Adviser or sub-adviser has determined are creditworthy. Under the terms of a typical repurchase agreement, a Fund takes possession of an underlying security (collateral) subject to an obligation of the seller to repurchase, and a Fund to resell, the security at an agreed upon price and time. Repurchase agreements permit a Fund to maintain liquidity and potentially earn income over periods of time that may be as short as overnight. The collateral for all repurchase agreements are held in safekeeping for the benefit of the Funds at the Trust’s custodian, or broker-dealer, or a designated sub-custodian under a tri-party repurchase agreement. All repurchase agreements entered into by a Fund are collateralized with cash or securities of a type that a Fund is permitted to hold. The collateral is evaluated daily to ensure its market value equals or exceeds the current market value of the repurchase agreements, including accrued interest, except in the case of a repurchase agreement entered into for the purposes of selling a security short, where the value of the collateral delivered to a Fund must equal or exceed 95% of the value of the repurchase price during the term of the repurchase agreement. The terms of a repurchase agreement entered into for the purposes of selling a security short may provide that the cash purchase price paid by a Fund is more than the value of the collateral received that it is obligated to return to the counterparty under the repurchase agreement. Since in such a transaction, a Fund normally will have used the collateral received to settle the short sale, a Fund will segregate liquid assets equal to the marked to market value of the collateral received that it is obligated to return to the counterparty under the repurchase agreement.
In the event of default on the obligation to repurchase a security held by a Fund as collateral, the Fund has the right to liquidate the security and apply the proceeds to the counterparty’s obligations to a Fund under the repurchase agreement. Upon an event of default under the repurchase agreement, if the seller defaults and the value of the collateral declines or if the seller enters an insolvency proceeding, realization of the collateral by the Fund may be delayed, limited or wholly denied.
Borrowings and Other Financing Transactions
The following disclosures contain information on a Fund’s ability to lend or borrow cash or securities to the extent permitted under the 1940 Act, which may be viewed as borrowing or financing transactions by a Fund. The location and fair value amounts of these instruments are described below. For a detailed description of credit and counterparty risks that can be associated with borrowings and other financing transactions see Note 5.
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 fund manager or otherwise cover its obligations under reverse repurchase agreements.
Sale-Buybacks Financing Transactions – 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. Such transactions are recorded as secured borrowings. 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 net 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 a Fund 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
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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 obligations 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 fund 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, AND ENFORCEABLE MASTER NETTING ARRANGEMENTS
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, option contracts, forward foreign currency contracts and swap agreements. 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 debt securities. Interest rate risk is the risk that debt 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. In a low interest rate environment, the risks associated with rising interest rates are heightened. Debt securities with longer durations tend to be more sensitive to changes in interest rates, making them more volatile than debt securities with shorter durations or money market instruments. Therefore, duration is a potentially useful tool to measure the sensitivity of a debt security’s yield (market price to interest rate movement). To manage these risks, certain Funds may invest in derivative instruments tied to interest rates.
Foreign investments and currency risk – A Fund may be exposed to foreign investments and/or currency risk through direct investment in securities or through options, futures or currency transactions. The prices of foreign securities that are denominated in foreign currencies are affected by the value of the U.S. dollar. With respect to securities denominated in foreign currencies, in general, as the value of the U.S. dollar rises, the U.S. dollar price of a foreign security will fall. As the value of the U.S. dollar falls, the U.S. dollar value of the foreign security will rise. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons. Foreign investments may be riskier than U.S. investments for many reasons, including changes in currency exchange rates, unstable political and economic conditions, a lack of adequate and timely company information, differences in the way securities markets operate, relatively lower market liquidity, less stringent financial reporting and accounting guidance and controls, less secure foreign banks or securities depositories than those in the U.S., foreign taxation issues and foreign controls on investments. As a result, a Fund’s investments in foreign currency-denominated securities and other foreign investments may reduce the returns of the Fund. To manage these risks, certain Funds may invest in derivative instruments tied to foreign investments and/or currencies.
Price volatility risk – Derivatives tied to equity and debt securities are exposed to potential price volatility. Debt securities are affected by many factors, including prevailing interest rates, market conditions and market liquidity. Volatility of below investment grade debt securities (including loans) may be relatively greater than for investment grade debt 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 debt 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 debt 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 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
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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.
Master Agreements and Netting Arrangements – Certain Funds are parties to various agreements, including but not limited to International Swaps and Derivatives Association Agreements and related Credit Support Annex, 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. These Master Agreements also include provisions for netting arrangements that help reduce credit and counterparty risk associated with relevant transactions. The netting arrangements are generally tied to credit related events that if triggered, would cause an event of default or termination giving a Fund or counterparty the right to terminate early and cause settlement, on a net basis, of all transactions under the applicable Master Agreement. In the event of an early termination as a result of an event of default under the Master Agreement, the total value exposure of all transactions will be offset against collateral exchanged to date, which would result in a net receivable or payable that would be due from or to the counterparty. Credit related 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. Any election made by a counterparty to early terminate the transactions under a Master Agreement could have a material adverse impact on a Fund’s financial statements. A Fund’s overall exposure to credit risk, subject to netting arrangements can change substantially within a short period, as it is affected by each transaction subject to the arrangement.
Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under the Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions under the relevant Master Agreement with a counterparty in a given Fund exceeds a specified threshold, net of collateral already in place, which typically ranges from $0 to $250,000 depending on the counterparty and the type of Master Agreement. Collateral under the Master Agreements is usually in the form of cash or U.S. Treasury Bills but could include other types of securities. The value of all derivative transactions outstanding under a Master Agreement is calculated daily to determine the amount of collateral to be received or pledged by the counterparty. Posting of collateral for OTC derivative transactions are covered under tri-party collateral agreements between the Trust, the Trust’s Custodian and each counterparty. Collateral for centrally cleared derivatives transactions are posted with the applicable derivatives clearing organization.
B. DERIVATIVE INVESTMENTS AND ENFORCEABLE MASTER NETTING ARRANGEMENTS
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 enhance 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 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 Managed Bond Funds used futures contracts to manage interest rate exposure, as a substitute for cash bond exposure, and for purposes of liquidity. The PL Managed Bond Fund also used futures contracts to manage duration and currency exposure. The PL Short Duration Bond Fund entered into interest rate futures to manage duration. The PL Small-Cap Value Fund entered into futures contracts to maintain full exposure to the equity markets. The PL International Large-Cap Fund entered into futures contracts to gain market exposure with the cash generated during PLFA’s reallocation of assets related to the Portfolio Optimization Funds. The PL Global Absolute Return Fund entered into futures contracts to manage duration and interest rate risk, to maintain full exposure to the equity markets, to manage exposure to various securities markets, to provide daily liquidity for the Fund’s inflows and outflows, and as a part of the Fund’s investment strategy.
Option Contracts – An option 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 option 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
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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 option 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 option 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, currencies and swaps, as a means of capitalizing on anticipated changes in market volatility and to generate income. Both Funds wrote inflation caps and floors to hedge duration. The PL Inflation Managed Fund also purchased swaptions on swaps as a substitute for cash bond exposure and for purposes of liquidity. The PL Managed Bond Fund also purchased swaptions on futures as a substitute for cash bond exposure and for purposes of liquidity. The PL Managed Bond Fund also purchased and wrote options to manage the market risk of the Fund’s cash bond exposure. The PL Mid-Cap Growth Fund purchased and wrote options to establish, increase or gain exposure to an underlying security and to hedge market risk on equity investments. The PL Global Absolute Return Fund purchased and wrote options for purposes of risk management to protect gains and to facilitate buying and selling of securities for investment.
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 investments, to hedge the currency exposure associated with some or all of the Fund’s investments or as part of these Funds’ investment strategy. The PL Short Duration Bond Fund entered into Forward Contracts to manage duration. The PL Emerging Markets Debt Fund entered into Forward Contracts to gain exposure to various markets, for hedging purposes to help protect the Fund’s returns against adverse currency movements, and as a part of the Fund’s investment strategy. The PL Comstock Fund entered into Forward Contracts for risk management purposes to mitigate currency risk and isolate securities selection as the primary driver of performance. The PL Large-Cap Growth Fund entered into Forward Contracts to hedge against a specific security or investment, and to establish or hedge exposure away from foreign currencies. The PL International Value Fund entered into Forward Contracts for risk management purposes to manage currency deviations relative to the benchmark. The PL Currency Strategies Fund purchased and sold non-deliverable Forward Contracts to gain or increase exposure to various currencies (both long and short positions) for hedging purposes to protect the Fund’s returns against adverse currency movements and as a part of the Fund’s investment strategy. The PL Global Absolute Return Fund entered into Forward Contracts to hedge against currency exposure associated with the Fund’s investments, to shift foreign currency exposure back to U.S. dollars, to shift investment exposure from one currency to another, to increase returns, and as a substitute for securities.
Swap Agreements – Swap agreements are bilaterally negotiated agreements between the Funds and their counterparties to exchange cash flows, assets, foreign currencies or market-linked returns at specified intervals. Swap agreements are privately negotiated in the OTC market or may be executed in a multilateral or other execution 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. OTC swap 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 swap agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). These upfront payments are recorded as realized gain or loss when the swap is closed. A liquidation payment
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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.
Cross-currency swaps are interest rate swaps in which interest cash flows are exchanged between two parties based on the notional amounts of two different currencies. The notional amounts are typically determined based on the spot exchange rates at the inception of the trade. Cross-currency swaps also involve the exchange of the notional amounts at the start of the contract at the current spot rate with an agreement to re-exchange such amounts at a later date at either the same exchange rate, a specified rate or the then current spot rate. The entire principal value of a cross-currency swap is subject to the risk that the counterparty to the swap will default on its contractual delivery obligations.
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 in various global markets, and as a substitute for cash bond exposure. The PL Emerging Markets Debt Fund entered into interest rate swaps for hedging purposes, to gain exposure to the various markets, and as part of the Fund’s investment strategy. The PL Global Absolute Return Fund entered into interest rate swaps for hedging purposes to manage interest rate risk, to gain or mitigate currency exposure and exposure to various securities markets, and to increase returns.
Credit Default Swaps – Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event of a default or other credit event for the referenced entity, obligation or index. As a seller of protection, a Fund generally receives an upfront payment or a fixed rate of income throughout the term of the swap provided there is no credit event. As the seller, a Fund would effectively add leverage to its Fund because, in addition to its total net assets, a Fund would be subject to investment exposure on the notional amount of the swap.
A Fund investing in credit default swaps is subject to the risk that there is no liquid market for these agreements, that the counterparties may default on their obligations to perform or disagree as to the meaning of the contractual terms in the agreements, or that there may be unfavorable changes in interest rates.
If a Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, a Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If a Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, a Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are assumed by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value.
Credit default swap agreements on corporate issues, sovereign issues of an emerging country or U.S. Treasury obligation issues 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, sovereign issues of an emerging country or U.S. Treasury obligation issues to provide a measure of protection against defaults of the issuers
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(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.
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 issues, sovereign issues of an emerging country or U.S. Treasury obligation issues 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 agreements 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, 2014 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 entered into credit default swaps on credit indices to increase exposure to the credit risk of individual securities or to the broader investment grade, high yield, or emerging market sectors. The PL Managed Bond Fund also entered into credit default swaps on credit indices to reduce credit exposure to individual issuers, reduce broader credit risk, and to take advantage of the basis between the credit default swap and the cash bond market. The PL Global Absolute Return Fund entered into credit default swaps to hedge exposure to the Fund’s investments, to increase or decrease credit exposure to various indices, individual issuers and securities or groups of securities, and to increase returns.
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Total Return Swaps – A Fund investing in total return swaps is subject to the risk that there is no liquid market for these agreements, that the counterparties may default on their obligations to perform or that there may be unfavorable changes in the value of the underlying index or reference instrument (generally caused by changes in interest rates or declines in credit quality). A total return swap agreement is one in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying index or reference instrument, which includes both the income it generates and any capital gains. To the extent the total return of the index or reference instrument underlying the transaction exceeds or falls short of the offsetting interest rate obligation, a Fund will receive a payment from or make a payment to the counterparty. A Fund’s maximum risk of loss from counterparty credit risk related to total return swaps is the discounted net value of the cash flows to be received from or paid to the counterparty over the contract’s remaining life, to the extent that the amount is positive. The risk may be mitigated to some extent if a master netting arrangement between a Fund and the counterparty is in place and to the extent a Fund obtains collateral to cover a Fund’s exposure to the counterparty.
A Fund may enter into fully funded total return swaps which involves one party making an initial payment equal to the estimated value of the reference instrument. The parties to the swap then exchange respective commitments to pay or receive a net amount based on the change in the fair value of a reference instrument and a specified notional amount.
During the reporting period, the Funds entered into total return swaps for the following reasons: The PL Emerging Markets Debt Fund entered into total return swaps for hedging purposes, to gain exposure to the various markets, and as part of the Fund’s investment strategy. The PL Global Absolute Return Fund entered into total return swaps to gain currency exposure in various markets, to increase or decrease credit exposure to various indices, individual issuers and securities or groups of securities, and to increase returns.
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 | ||||
Credit contracts | Investments, at value | Outstanding options written, at value | ||||
Equity contracts | Receivable: Variation margin | Payable: Variation margin | ||||
Interest rate contracts | Swap agreements, at value | Swap agreements, at value | ||||
Foreign currency 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 | |||||
Swap agreements, at value | Swap agreements, at value |
The following is a summary of fair values of derivative investments disclosed in the Trust’s Statements of Assets and Liabilities, categorized by primary risk exposure as of September 30, 2014:
Asset Derivative Investments Value | ||||||||||||||||||||
Fund | Total Value at September 30, 2014 | Credit Contracts | Equity Contracts | Foreign Currency Contracts | Interest Rate Contracts | |||||||||||||||
PL Inflation Managed | $2,732,090 | $147,867 | * | $— | $2,176,233 | $407,990 | * | |||||||||||||
PL Managed Bond | 7,354,478 | 1,555,512 | * | — | 4,743,727 | * | 1,055,239 | * | ||||||||||||
PL Short Duration Bond | 22,512 | — | — | 22,512 | — | |||||||||||||||
PL Emerging Markets Debt | 5,347,983 | — | — | 2,123,244 | 3,224,739 | |||||||||||||||
PL Comstock | 450,558 | — | — | 450,558 | — | |||||||||||||||
PL Large-Cap Growth | 44,002 | — | — | 44,002 | — | |||||||||||||||
PL International Value | 2,304,242 | — | — | 2,304,242 | — | |||||||||||||||
PL Currency Strategies | 10,537,665 | — | — | 10,537,665 | — | |||||||||||||||
PL Global Absolute Return | 18,338,258 | 3,882,006 | 660,551 | * | 12,128,158 | 1,667,543 | * |
Liability Derivative Investments Value | ||||||||||||||||||||
Fund | Total Value at September 30, 2014 | Credit Contracts | Equity Contracts | Foreign Currency Contracts | Interest Rate Contracts | |||||||||||||||
PL Inflation Managed | ($2,204,601 | ) | ($78,347 | )* | $— | ($843,091 | ) | ($1,283,163 | )* | |||||||||||
PL Managed Bond | (3,659,519 | ) | (794,482 | ) | — | (706,637 | ) | (2,158,400 | )* | |||||||||||
PL Short Duration Bond | (16,423 | ) | — | — | (16,423 | ) | — | |||||||||||||
PL Emerging Markets Debt | (2,167,843 | ) | — | — | (2,101,601 | ) | (66,242 | ) | ||||||||||||
PL Mid-Cap Growth | (3,422 | ) | — | (3,422 | )* | — | — | |||||||||||||
PL International Value | (2,510,571 | ) | — | — | (2,510,571 | ) | — | |||||||||||||
PL Currency Strategies | (8,802,990 | ) | — | — | (8,802,990 | ) | — | |||||||||||||
PL Global Absolute Return | (6,651,807 | ) | (1,178,101 | ) | (94,533 | ) | (4,044,735 | ) | (1,334,438 | )* |
* | Includes cumulative appreciation (depreciation) of futures contracts and centrally cleared options and swaps as reported in the Notes to Schedules of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities. |
C-14
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
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 | |||
Credit contracts | Net realized gain (loss) on investment security transactions | |||
Equity contracts | Net realized gain (loss) on futures contract transactions | |||
Interest rate contracts | Net realized gain (loss) on 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 | ||||
Change in net unrealized appreciation (depreciation) on swaps | ||||
Change in net unrealized appreciation (depreciation) on written options | ||||
Foreign currency contracts | Net realized gain (loss) on investment security transactions | |||
Net realized gain (loss) on futures contract transactions | ||||
Net realized gain (loss) on 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 | ||||
Change in net unrealized appreciation (depreciation) on swaps | ||||
Change in net unrealized appreciation (depreciation) on written options | ||||
Change in net unrealized appreciation (depreciation) on foreign currencies |
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 Trust’s Statements of Operations categorized by primary risk exposure for the six-month period ended September 30, 2014:
Realized Gain (Loss) on Derivative Investments Recognized in the Statements of Operations | ||||||||||||||||||||
Fund | Total | Credit Contracts | Equity Contracts | Foreign Currency Contracts | Interest Rate Contracts | |||||||||||||||
PL Inflation Managed | $1,148,875 | $89,881 | $— | $1,306,995 | ($248,001 | ) | ||||||||||||||
PL Managed Bond | 8,763,303 | 985,837 | — | 3,806,794 | 3,970,672 | |||||||||||||||
PL Short Duration Bond | 5,178 | — | — | 5,497 | (319 | ) | ||||||||||||||
PL Emerging Markets Debt | 571,445 | — | — | 499,555 | 71,890 | |||||||||||||||
PL Comstock | 1,009,331 | — | — | 1,009,331 | — | |||||||||||||||
PL Large-Cap Growth | (19,422 | ) | — | — | (19,422 | ) | — | |||||||||||||
PL Mid-Cap Growth | (107,479 | ) | — | (107,479 | ) | — | — | |||||||||||||
PL Small-Cap Value | (26,950 | ) | — | (26,950 | ) | — | — | |||||||||||||
PL International Large-Cap | 2,378 | — | 2,378 | — | — | |||||||||||||||
PL International Value | 819,478 | — | — | 819,478 | — | |||||||||||||||
PL Currency Strategies | 11,428,642 | — | — | 11,428,642 | — | |||||||||||||||
PL Global Absolute Return | 212,099 | (734,889 | ) | 720,053 | 1,093,810 | (866,875 | ) |
Change in Net Unrealized Appreciation (Depreciation) on Derivative Investments Recognized in the Statements of Operations | ||||||||||||||||||||
Fund | Total | Credit Contracts | Equity Contracts | Foreign Currency Contracts | Interest Rate Contracts | |||||||||||||||
PL Inflation Managed | $933,740 | $62,400 | $— | $1,368,072 | ($496,732 | ) | ||||||||||||||
PL Managed Bond | 2,673,614 | (190,145 | ) | — | 3,727,931 | (864,172 | ) | |||||||||||||
PL Short Duration Bond | 592 | — | — | 6,089 | (5,497 | ) | ||||||||||||||
PL Emerging Markets Debt | (385,980 | ) | — | — | (194,058 | ) | (191,922 | ) | ||||||||||||
PL Comstock | 601,123 | — | — | 601,123 | — | |||||||||||||||
PL Large-Cap Growth | 15,107 | — | — | 15,107 | — | |||||||||||||||
PL Mid-Cap Growth | (4,165 | ) | — | (4,165 | ) | — | — | |||||||||||||
PL International Value | (843,928 | ) | — | — | (843,928 | ) | — | |||||||||||||
PL Currency Strategies | 6,902,206 | — | — | 6,902,206 | — | |||||||||||||||
PL Global Absolute Return | 6,195,294 | (231,900 | ) | 221,223 | 6,588,042 | (382,071 | ) |
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, 2014 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 for the six-month period ended September 30, 2014.
C-15
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
��
The following is a summary of financial and derivative instruments that are subject to enforceable master netting agreements (or similar arrangements) and collateral received and pledged in connection with the master netting agreements (or similar arrangements) as of September 30, 2014:
Gross Amounts Presented in the Statements of Assets and Liabilities | Gross Amounts Not Offset in Statements of Assets and Liabilities | Gross Amounts Presented in the Statements of Assets and Liabilities | Gross Amounts Not Offset in Statements of Assets and Liabilities | |||||||||||||||||||||||||||||||
Description | Financial Instruments | Collateral Received | Net Amount | Financial Instruments | Collateral Pledged | Net Amount | ||||||||||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||||||||||||||
PL Inflation Managed | ||||||||||||||||||||||||||||||||||
Swaps | $107,446 | $107,446 | $— | $— | ($808,999 | ) | ($107,446 | ) | $— | ($701,553 | ) | |||||||||||||||||||||||
Options | 3 | 3 | — | — | (58,080 | ) | (3 | ) | — | (58,077 | ) | |||||||||||||||||||||||
Forward foreign currency contracts | 2,176,233 | 569,283 | 1,090,000 | 516,950 | (805,066 | ) | (569,283 | ) | — | (235,783 | ) | |||||||||||||||||||||||
Sale-buyback financing transactions | (52,021,098 | ) | (51,830,995 | ) | — | (190,103 | ) | |||||||||||||||||||||||||||
PL Managed Bond | ||||||||||||||||||||||||||||||||||
Swaps | 969,335 | 431,774 | 443,626 | 93,935 | (843,871 | ) | (431,774 | ) | — | (412,097 | ) | |||||||||||||||||||||||
Options | — | — | — | — | (343,446 | ) | — | — | (343,446 | ) | ||||||||||||||||||||||||
Forward foreign currency contracts | 4,533,561 | 307,416 | 3,487,652 | 738,493 | (698,254 | ) | (307,416 | ) | — | (390,838 | ) | |||||||||||||||||||||||
PL Short Duration Bond | ||||||||||||||||||||||||||||||||||
Forward foreign currency contracts | 22,512 | 16,423 | — | 6,089 | (16,423 | ) | (16,423 | ) | — | — | ||||||||||||||||||||||||
PL Emerging Markets Debt | ||||||||||||||||||||||||||||||||||
Swaps | 3,224,739 | 46,103 | — | 3,178,636 | (66,242 | ) | (46,103 | ) | — | (20,139 | ) | |||||||||||||||||||||||
Forward foreign currency contracts | 2,123,244 | 1,774,279 | — | 348,965 | (2,101,601 | ) | (1,774,279 | ) | (36 | ) | (327,286 | ) | ||||||||||||||||||||||
PL Comstock | ||||||||||||||||||||||||||||||||||
Forward foreign currency contracts | 450,558 | — | — | 450,558 | — | — | — | — | ||||||||||||||||||||||||||
PL Large-Cap Growth | ||||||||||||||||||||||||||||||||||
Forward foreign currency contracts | 44,002 | — | — | 44,002 | — | — | — | — | ||||||||||||||||||||||||||
PL International Value | ||||||||||||||||||||||||||||||||||
Forward foreign currency contracts | 2,304,242 | 582,325 | — | 1,721,917 | (2,510,571 | ) | (582,325 | ) | — | (1,928,246 | ) | |||||||||||||||||||||||
PL Currency Strategies | ||||||||||||||||||||||||||||||||||
Forward foreign currency contracts | 10,537,665 | 5,732,076 | 3,473,213 | 1,332,376 | (8,802,990 | ) | (5,732,076 | ) | (1,638,413 | ) | (1,432,501 | ) | ||||||||||||||||||||||
PL Global Absolute Return | ||||||||||||||||||||||||||||||||||
Swaps | 7,841,703 | 1,775,338 | 5,353,015 | 713,350 | (1,806,558 | ) | (1,775,338 | ) | — | (31,220 | ) | |||||||||||||||||||||||
Options | 2,763,353 | 1,375,959 | 1,224,249 | 163,145 | (1,375,959 | ) | (1,375,959 | ) | — | — | ||||||||||||||||||||||||
Forward foreign currency contracts | 7,095,852 | 2,581,664 | 3,983,360 | 530,828 | (2,668,776 | ) | (2,581,664 | ) | — | (87,112 | ) |
As of September 30, 2014, certain Funds had investments in repurchase agreements. The gross value and related collateral received for these investments are presented in each applicable Fund’s Schedule of Investments and the value of these investments is also presented in the Statements of Assets and Liabilities. The value of the related collateral held by each applicable Fund presented in these financial statements, except for the PL Global Absolute Return Fund, exceeded the value of the repurchase agreements as of September 30, 2014. For the PL Global Absolute Return Fund (see page A-80), the value of the related collateral (State of Qatar) of $275,463 held by the Fund for one of the repurchase agreements (Barclays PLC), which was entered into by the Fund for the purpose of selling a security short, exceeded 95% of the value of the repurchase price of the repurchase agreement ($276,005) as of September 30, 2014. As discussed in Note 4 on page C-8, in the case of a repurchase agreement entered into by a Fund for the purposes of selling a security short, the value of the collateral delivered to a Fund must be equal to or exceed 95% of the value of the repurchase price during the term of the repurchase agreement.
C-16
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
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 Adviser to the Trust. For the PL Underlying Funds, PLFA has retained other investment management firms to sub-advise each Fund, as discussed later in this section. PLFA receives investment advisory fees from each Fund based on the following advisory fee rates, which are based on an annual percentage of average daily net assets of each Fund:
PL Floating Rate Loan (1) | 0.75% | PL Large-Cap Growth (1) | 0.75% | PL Real Estate | 0.90% | |||||
PL Inflation Managed | 0.40% | PL Large-Cap Value | 0.65% | PL Emerging Markets | 0.80% | |||||
PL Managed Bond | 0.40% | PL Main Street Core | 0.45% | PL International Large-Cap | 0.85% | |||||
PL Short Duration Bond | 0.40% | PL Mid-Cap Equity | 0.65% | PL International Value | 0.65% | |||||
PL Emerging Markets Debt | 0.785% | PL Mid-Cap Growth (1) | 0.70% | PL Currency Strategies | 0.65% | |||||
PL Comstock (1) | 0.75% | PL Small-Cap Growth | 0.60% | PL Global Absolute Return | 0.80% | |||||
PL Growth | 0.55% | PL Small-Cap Value | 0.75% | PL Precious Metals (1) | 0.75% |
(1) | PLFA agreed to waive 0.10%, 0.015%, 0.045%, 0.05% and 0.07% of its advisory fee through July 31, 2015 for the PL Floating Rate Loan, PL Comstock, PL Large-Cap Growth, PL Mid-Cap Growth and PL Precious Metals Funds, respectively. The agreement will terminate if the investment advisory agreement is terminated or upon approval by the Board and prior written notice to the Adviser. There is no guarantee that PLFA will continue such waivers after that date. |
Pursuant to Fund Management Agreements, as of September 30, 2014, the Trust and PLFA engage various investment management firms under PLFA’s supervision for the PL Underlying Funds. As of September 30, 2014, the following firms serve as sub-advisers for their respective Fund(s): Eaton Vance Investment Managers for the PL Floating Rate Loan and PL Global Absolute Return Funds; Pacific Investment Management Company LLC for the PL Inflation Managed Fund; Pacific Investment Management Company LLC and Western Asset Management Company LLC (co-sub-advisers) for the PL Managed Bond Fund; 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; MFS Investment Management for the PL Growth and PL International Large-Cap Funds; BlackRock Investment Management, LLC for the PL Large-Cap Growth Fund; ClearBridge Investments, LLC for the PL Large-Cap Value Fund; OppenheimerFunds, Inc. for the PL Main Street Core and PL Emerging Markets Funds; Scout Investments, Inc. for the PL Mid-Cap Equity Fund; Ivy Investment Management Company for the PL Mid-Cap Growth Fund; Lord, Abbett & Co. LLC for the PL Small-Cap Growth Fund; AllianceBernstein L.P. for the PL Small-Cap Value Fund; Morgan Stanley Investment Management Inc. for the PL Real Estate Fund, J.P. Morgan Investment Management Inc. for the PL International Value Fund; Macro Currency Group and UBS Global Asset Management (Americas) Inc. (co-sub-advisers) for the PL Currency Strategies Fund; and Wells Capital Management Incorporated for the PL Precious Metals Fund. PLFA, as 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. 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 compensates 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 reimburses 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 Class P shares of the PL Underlying Funds presented in these financial statements are 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, the Distributor and Pacific Life are related parties. The advisory fees earned by the Adviser, including any advisory fee waiver, the administration fees earned by Pacific Life, and expenses for support services recovered by PLFA and Pacific Life (see Note 6) from each Fund presented in these financial statements for the six-month period ended September 30, 2014 are presented in the Statements of Operations. The amounts of each of these fees that remained payable as of September 30, 2014 are presented in the Statements of Assets and Liabilities.
C-17
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
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 presented in these financial statements 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, except the PL Currency Strategies, PL Global Absolute Return and PL Precious Metals Funds, is 0.15% through July 31, 2015 and 0.30% thereafter through July 31, 2022. The expense cap for the PL Currency Strategies, PL Global Absolute Return and PL Precious Metals Funds was 0.20% through July 31, 2014 and is currently 0.25% through July 31, 2015. There is no guarantee that PLFA will continue to cap expenses upon the expiration of the applicable expense limitation agreements.
Any expense reimbursements are subject to recoupment by 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 took place), to the extent that the recoupment would not cause the Fund to exceed the expense cap that was in effect at the time of the reimbursement. Any amounts repaid to PLFA will have the effect of increasing such expenses of the Fund, but not above the current expense cap. There was no recoupment of expense reimbursement by PLFA from any Funds presented in these financial statements during the six-month period ended September 30, 2014.
The Adviser expense reimbursement and the advisory fee waiver, if any, of each of the applicable Funds presented in these financial statements for the six-month period ended September 30, 2014 are presented in the Statements of Operations. Any amounts that remained due from the Adviser as of September 30, 2014 are presented in the Statements of Assets and Liabilities.
The cumulative expense reimbursement amounts, if any, as of September 30, 2014 that are subject to recoupment by PLFA from each Fund presented in these financial statements are as follows:
Expiration Date | ||||||||||||||||
Fund | 3/31/2015 | 3/31/2016 | 3/31/2017 | 3/31/2018 | ||||||||||||
PL Floating Rate Loan | $131,663 | $138,319 | $145,911 | $76,429 | ||||||||||||
PL Inflation Managed | 295,942 | 210,150 | 147,422 | 70,585 | ||||||||||||
PL Managed Bond | 506,074 | 511,150 | 474,658 | 216,467 | ||||||||||||
PL Short Duration Bond | 168,516 | 200,776 | 214,263 | 101,256 | ||||||||||||
PL Emerging Markets Debt | 149,277 | 136,611 | 85,578 | |||||||||||||
PL Comstock | 167,205 | 179,416 | 188,193 | 89,196 | ||||||||||||
PL Growth | 163,768 | 95,666 | 66,117 | 33,109 | ||||||||||||
PL Large-Cap Growth | 106,391 | 120,927 | 108,743 | 57,182 | ||||||||||||
PL Large-Cap Value | 206,530 | 217,662 | 225,998 | 108,252 | ||||||||||||
PL Main Street Core | 160,866 | 167,926 | 158,976 | 74,194 | ||||||||||||
PL Mid-Cap Equity | 136,380 | 137,581 | 101,037 | 50,629 | ||||||||||||
PL Mid-Cap Growth | 83,455 | 95,060 | 60,241 | 27,642 | ||||||||||||
PL Small-Cap Growth | 59,708 | 63,952 | 45,628 | 21,599 | ||||||||||||
PL Small-Cap Value | 93,513 | 101,068 | 99,142 | 46,252 | ||||||||||||
PL Real Estate | 59,572 | 60,947 | 42,886 | 20,791 | ||||||||||||
PL Emerging Markets | 388,707 | 408,692 | 425,076 | 187,920 | ||||||||||||
PL International Large-Cap | 289,591 | 257,028 | 225,808 | 117,190 | ||||||||||||
PL International Value | 213,243 | 187,506 | 180,640 | 90,691 | ||||||||||||
PL Currency Strategies | 31,042 | 49,987 | 4,342 | |||||||||||||
PL Global Absolute Return | 68,978 | 319,375 | 116,300 | |||||||||||||
PL Precious Metals | 33,601 | 33,735 | 5,903 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $3,231,124 | $3,436,724 | $3,450,447 | $1,601,507 | ||||||||||||
|
|
|
|
|
|
|
|
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 those 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. Deferred 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 without a sales load, of Class A shares of the Portfolio Optimization Funds, PL Diversified Alternatives Fund, PL Short Duration Income Fund, PL Income Fund, PL Strategic Income Fund, PL Floating Rate Income Fund, PL Limited Duration High Income Fund and/or PL High Income Fund, and/or Class P shares of the corresponding PL Underlying Funds. 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
C-18
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
depreciation on a Fund’s DCP Liability account is recorded as an increase or decrease to expenses (trustees’ fees and expenses). For the six-month period ended September 30, 2014, such expenses were increased by $1,172 for all applicable Funds presented in these financial statements as a result of the market value appreciation on such accounts. As of September 30, 2014, the total amount in the DCP Liability accounts was $42,760 for all applicable Funds presented in these financial statements.
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, 2014, the PL Floating Rate Loan and Global Absolute Return Funds had unfunded loan commitments of $12,132 and $143,126, respectively (see details in the Notes to Schedule of Investments).
9. PURCHASES AND SALES OF INVESTMENTS
The cost of purchases and proceeds from sales of investments (excluding short-term investments) for the six-month period ended September 30, 2014, are summarized in the following table:
U.S. Government Securities | Other Securities | |||||||||||||||
Fund | Purchases | Sales | Purchases | Sales | ||||||||||||
PL Floating Rate Loan | $— | $— | $29,858,924 | $21,501,407 | ||||||||||||
PL Inflation Managed | 58,858,423 | 95,070,030 | 20,733,842 | 16,801,674 | ||||||||||||
PL Managed Bond | 1,290,962,593 | 1,532,306,915 | 273,221,169 | 152,802,684 | ||||||||||||
PL Short Duration Bond | 30,623,566 | 25,248,961 | 51,465,333 | 32,358,878 | ||||||||||||
PL Emerging Markets Debt | — | — | 94,952,651 | 63,878,440 | ||||||||||||
PL Comstock | — | — | 29,301,588 | 79,786,828 | ||||||||||||
PL Growth | — | — | 48,139,406 | 20,108,812 | ||||||||||||
PL Large-Cap Growth | — | — | 105,816,580 | 97,429,615 | ||||||||||||
PL Large-Cap Value | — | — | 32,336,159 | 85,458,024 | ||||||||||||
PL Main Street Core | — | — | 44,686,634 | 63,882,918 | ||||||||||||
PL Mid-Cap Equity | — | — | 161,251,706 | 135,235,569 | ||||||||||||
PL Mid-Cap Growth | — | — | 15,021,613 | 23,466,685 | ||||||||||||
PL Small-Cap Growth | — | — | 128,749,238 | 108,384,845 | ||||||||||||
PL Small-Cap Value | — | — | 162,395,879 | 166,522,815 | ||||||||||||
PL Real Estate | — | — | 11,684,340 | 41,083,873 | ||||||||||||
PL Emerging Markets | — | — | 23,689,531 | 19,271,861 | ||||||||||||
PL International Large-Cap | — | — | 75,907,385 | 36,313,927 | ||||||||||||
PL International Value | — | — | 79,493,323 | 75,587,296 | ||||||||||||
PL Currency Strategies | — | 8,019,375 | 16,510,692 | 19,068,843 | ||||||||||||
PL Global Absolute Return | 22,066,300 | 22,404,243 | 84,506,600 | 79,009,937 | ||||||||||||
PL Precious Metals | — | — | 15,319,733 | 62,536,952 |
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 September 30, 2014, 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 sale-buyback financing transactions, 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.
C-19
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, as of March 31, 2014:
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 | Long-Term Capital | Total | |||||||||||||||||||||||
PL Floating Rate Loan | $— | $1,074,728 | $17,082 | $— | $— | $— | $— | |||||||||||||||||||||||
PL Inflation Managed | — | — | — | 551,993 | — | 343,178 | 895,171 | |||||||||||||||||||||||
PL Managed Bond | — | 1,276,546 | — | — | — | 1,833,542 | 1,833,542 | |||||||||||||||||||||||
PL Short Duration Bond | (1,189,115 | ) | 678,788 | — | — | — | — | — | ||||||||||||||||||||||
PL Emerging Markets Debt | (3,229,151 | ) | 1,473,531 | — | — | — | — | — | ||||||||||||||||||||||
PL Comstock | (2,589,476 | ) | 1,387,754 | — | — | — | — | — | ||||||||||||||||||||||
PL Growth | (64,515 | ) | 144,321 | — | — | — | — | — | ||||||||||||||||||||||
PL Large-Cap Growth | — | 6,939,895 | 1,203,792 | — | — | — | — | |||||||||||||||||||||||
PL Large-Cap Value | — | 4,224,260 | 4,025,576 | — | — | — | — | |||||||||||||||||||||||
PL Main Street Core | — | 533,464 | 16,539,176 | — | — | — | — | |||||||||||||||||||||||
PL Mid-Cap Equity | — | 7,116,647 | 5,573,578 | — | — | — | — | |||||||||||||||||||||||
PL Mid-Cap Growth | — | 2,468,190 | 637,386 | — | — | — | — | |||||||||||||||||||||||
PL Small-Cap Growth | — | — | 3,941,812 | — | — | — | — | |||||||||||||||||||||||
PL Small-Cap Value | — | 1,352,803 | 5,868,777 | — | — | — | — | |||||||||||||||||||||||
PL Real Estate | (5,601,478 | ) | 64,888 | — | — | — | — | — | ||||||||||||||||||||||
PL Emerging Markets | — | 232,023 | 2,133,675 | — | — | — | — | |||||||||||||||||||||||
PL International Large-Cap | (8,480,971 | ) | 1,323,818 | — | — | — | — | — | ||||||||||||||||||||||
PL International Value | (46,724,813 | ) | 3,358,412 | — | — | — | — | — | ||||||||||||||||||||||
PL Currency Strategies | (3,261 | ) | — | — | 8,173,260 | 587 | — | 8,173,847 | ||||||||||||||||||||||
PL Global Absolute Return | (395,703 | ) | — | — | 119,724 | 249,059 | 260,517 | 629,300 | ||||||||||||||||||||||
PL Precious Metals | (9,007,879 | ) | — | — | 72,236 | — | — | 72,236 |
Accumulated capital losses represent net capital loss carryovers as of March 31, 2014 that may be available to offset future realized capital gains and thereby reduce future capital gains distributions. The following table shows the expiration dates and the amounts of capital loss carryover, if any, by each of the applicable Funds as of March 31, 2014 and capital loss carryover from prior years utilized during the year ended March 31, 2014:
Net Capital Loss Carryover Expiring In | Unlimited Period of Net Capital Loss Carryover | Accumulated | Capital Loss Carryover Utilized During the Year Ended March 31, 2014 | |||||||||||||||||||||||||||
Fund | 2017 | 2018 | 2019 | Short Term | Long Term | |||||||||||||||||||||||||
PL Short Duration Bond | $— | $— | $— | ($756,293 | ) | ($432,822 | ) | ($1,189,115 | ) | $— | ||||||||||||||||||||
PL Emerging Markets Debt | — | — | — | (2,091,586 | ) | (1,137,565 | ) | (3,229,151 | ) | — | ||||||||||||||||||||
PL Comstock | — | (2,589,476 | ) | — | — | — | (2,589,476 | ) | 12,977,911 | |||||||||||||||||||||
PL Growth | — | (64,515 | ) | — | — | — | (64,515 | ) | 8,017,738 | |||||||||||||||||||||
PL Large-Cap Value | — | — | — | — | — | — | 11,105,101 | |||||||||||||||||||||||
PL Main Street Core | — | — | — | — | — | — | 15,493,117 | |||||||||||||||||||||||
PL Small-Cap Growth | — | — | — | — | — | — | 2,656,829 | |||||||||||||||||||||||
PL Small-Cap Value | — | — | — | — | — | — | 565,420 | |||||||||||||||||||||||
PL Real Estate | — | (5,601,478 | ) | — | — | — | (5,601,478 | ) | 1,517,472 | |||||||||||||||||||||
PL International Large-Cap | — | (5,828,808 | ) | (2,652,163 | ) | — | — | (8,480,971 | ) | 2,778,892 | ||||||||||||||||||||
PL International Value | (6,971,246 | ) | (38,541,418 | ) | — | (1,212,149 | ) | — | (46,724,813 | ) | 9,493,952 | |||||||||||||||||||
PL Currency Strategies | — | — | — | (3,261 | ) | — | (3,261 | ) | — | |||||||||||||||||||||
PL Global Absolute Return | — | — | — | (116,933 | ) | (278,770 | ) | (395,703 | ) | — | ||||||||||||||||||||
PL Precious Metals | — | — | — | (6,606,106 | ) | (2,401,773 | ) | (9,007,879 | ) | — |
C-20
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, 2014, were as follows:
Fund | Total Cost of Investments on Tax Basis (1) | Gross Unrealized Appreciation on Investments | Gross Unrealized Depreciation on Investments | Net Unrealized Appreciation (Depreciation) on Investments | ||||||||||||
PL Floating Rate Loan | $132,006,923 | $116,754 | ($2,120,020 | ) | ($2,003,266 | ) | ||||||||||
PL Inflation Managed | 185,296,794 | 1,094,930 | (9,539,261 | ) | (8,444,331 | ) | ||||||||||
PL Managed Bond | 840,008,799 | 7,333,688 | (6,131,419 | ) | 1,202,269 | |||||||||||
PL Short Duration Bond | 247,145,186 | 1,336,352 | (1,011,348 | ) | 325,004 | |||||||||||
PL Emerging Markets Debt | 166,950,567 | 1,113,980 | (6,194,519 | ) | (5,080,539 | ) | ||||||||||
PL Comstock | 171,601,480 | 95,903,665 | (570,753 | ) | 95,332,912 | |||||||||||
PL Growth | 111,319,494 | 22,360,590 | (627,678 | ) | 21,732,912 | |||||||||||
PL Large-Cap Growth | 156,111,850 | 30,003,202 | (1,641,878 | ) | 28,361,324 | |||||||||||
PL Large-Cap Value | 212,246,979 | 132,263,756 | (1,734,529 | ) | 130,529,227 | |||||||||||
PL Main Street Core | 189,384,488 | 66,801,674 | (2,578,984 | ) | 64,222,690 | |||||||||||
PL Mid-Cap Equity | 183,210,369 | 22,923,999 | (3,284,593 | ) | 19,639,406 | |||||||||||
PL Mid-Cap Growth | 77,723,678 | 8,378,420 | (3,368,545 | ) | 5,009,875 | |||||||||||
PL Small-Cap Growth | 77,547,603 | 4,941,810 | (2,213,544 | ) | 2,728,266 | |||||||||||
PL Small-Cap Value | 137,447,952 | 4,544,003 | (12,051,971 | ) | (7,507,968 | ) | ||||||||||
PL Real Estate | 27,362,980 | 18,226,694 | (359,057 | ) | 17,867,637 | |||||||||||
PL Emerging Markets | 130,511,794 | 34,134,699 | (5,239,103 | ) | 28,895,596 | |||||||||||
PL International Large-Cap | 215,324,780 | 63,314,268 | (3,812,074 | ) | 59,502,194 | |||||||||||
PL International Value | 167,697,679 | 18,124,247 | (5,006,050 | ) | 13,118,197 | |||||||||||
PL Currency Strategies | 199,604,965 | 12,900 | (2,190,270 | ) | (2,177,370 | ) | ||||||||||
PL Global Absolute Return | 177,031,510 | 3,679,570 | (7,014,721 | ) | (3,335,151 | ) | ||||||||||
PL Precious Metals | 44,256,722 | 1,827,809 | (8,588,409 | ) | (6,760,600 | ) |
(1) | The difference between the total cost of investments on tax basis and the total investments, at cost, as presented in the Statements of Assets and Liabilities is primarily due to wash sale loss deferrals, investments in passive foreign investment companies and investments in partnerships. |
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. Management has analyzed all open tax years, as defined by the statute of limitations, for all major jurisdictions and has determined that no provision for income tax is required in the financial statements. Each Fund remains subject to examination by Federal and State tax authorities for the returns filed for tax years ended after March 31, 2010.
11. TAX CHARACTER OF DISTRIBUTIONS
The tax character of income and capital gains distributions to shareholders during the year ended March 31, 2014, were as follows:
For the Year Ended March 31, 2014 | ||||||||||||
Funds | Ordinary Income | Long-Term Capital Gains | Total Distributions | |||||||||
PL Floating Rate Loan | $4,669,660 | $1,512,705 | $6,182,365 | |||||||||
PL Inflation Managed | 1,675,821 | 1,787,419 | 3,463,240 | |||||||||
PL Managed Bond | 9,129,156 | 2,238,185 | 11,367,341 | |||||||||
PL Short Duration Bond | 3,024,235 | — | 3,024,235 | |||||||||
PL Emerging Markets Debt | 5,009,739 | — | 5,009,739 | |||||||||
PL Comstock | 2,637,092 | — | 2,637,092 | |||||||||
PL Growth | 573,668 | — | 573,668 | |||||||||
PL Large-Cap Growth | 11,277,943 | 22,887,345 | 34,165,288 | |||||||||
PL Large-Cap Value | 5,289,219 | — | 5,289,219 | |||||||||
PL Main Street Core | 2,316,456 | — | 2,316,456 | |||||||||
PL Mid-Cap Equity | 4,132,303 | 8,798,178 | 12,930,481 | |||||||||
PL Mid-Cap Growth | 4,267,256 | 14,963,337 | 19,230,593 | |||||||||
PL Small-Cap Growth | 98,333 | 1,357,926 | 1,456,259 | |||||||||
PL Small-Cap Value | 1,895,573 | 6,190,367 | 8,085,940 | |||||||||
PL Real Estate | 1,118,697 | — | 1,118,697 | |||||||||
PL Emerging Markets | 903,956 | 2,799,145 | 3,703,101 | |||||||||
PL International Large-Cap | 2,672,165 | — | 2,672,165 | |||||||||
PL International Value | 4,102,104 | — | 4,102,104 | |||||||||
PL Currency Strategies | 4,034,980 | — | 4,034,980 | |||||||||
PL Global Absolute Return | 4,132,927 | — | 4,132,927 | |||||||||
PL Precious Metals | 451,925 | — | 451,925 |
There were no income and capital gains distributions to shareholders by any of the Funds presented in these financial statements during the six-month period ended September 30, 2014.
C-21
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, 2014 and the year ended March 31, 2014 were as follows:
Floating Rate Loan Fund | PL Inflation Managed Fund | PL Managed Bond Fund | PL Short Duration Bond Fund | |||||||||||||||||||||||||||||||||||
Six-Month Period ended 9/30/2014 | Year ended 3/31/2014 | Six-Month Period ended 9/30/2014 | Year ended 3/31/2014 | Six-Month Period ended 9/30/2014 | Year ended 3/31/2014 | Six-Month Period ended 9/30/2014 | Year ended 3/31/2014 | |||||||||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||||||||
Shares sold | 1,058,156 | 1,725,341 | 1,178,668 | 5,151,327 | 8,082,150 | 5,828,905 | 2,835,510 | 2,385,913 | ||||||||||||||||||||||||||||||
Dividends and distributions reinvested | — | 613,198 | — | 397,051 | — | 1,061,403 | — | 302,423 | ||||||||||||||||||||||||||||||
Shares repurchased | (531,201 | ) | (848,303 | ) | (7,634,743 | ) | (1,405,615 | ) | (2,211,621 | ) | (3,896,449 | ) | (1,083,384 | ) | (1,968,936 | ) | ||||||||||||||||||||||
Net increase (decrease) | 526,955 | 1,490,236 | (6,456,075 | ) | 4,142,763 | 5,870,529 | 2,993,859 | 1,752,126 | 719,400 | |||||||||||||||||||||||||||||
Beginning shares outstanding | 12,254,718 | 10,764,482 | 21,018,831 | 16,876,068 | 53,880,121 | 50,886,262 | 22,814,514 | 22,095,114 | ||||||||||||||||||||||||||||||
Ending shares outstanding | 12,781,673 | 12,254,718 | 14,562,756 | 21,018,831 | 59,750,650 | 53,880,121 | 24,566,640 | 22,814,514 | ||||||||||||||||||||||||||||||
PL Emerging Markets Debt Fund | PL Comstock Fund | PL Growth Fund | PL Large-Cap Growth Fund | |||||||||||||||||||||||||||||||||||
Six-Month Period ended 9/30/2014 | Year ended 3/31/2014 | Six-Month Period ended 9/30/2014 | Year ended 3/31/2014 | Six-Month Period ended 9/30/2014 | Year ended 3/31/2014 | Six-Month Period ended 9/30/2014 | Year ended 3/31/2014 | |||||||||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||||||||
Shares sold | 3,913,304 | 5,607,316 | 145,215 | — | 1,727,058 | 2,489,857 | 1,216,302 | 101,415 | ||||||||||||||||||||||||||||||
Dividends and distributions reinvested | — | 520,381 | — | 153,052 | — | 33,256 | — | 3,391,672 | ||||||||||||||||||||||||||||||
Shares repurchased | (550,589 | ) | (820,900 | ) | (3,261,976 | ) | (798,055 | ) | (169,976 | ) | (169,158 | ) | (780,313 | ) | (388,536 | ) | ||||||||||||||||||||||
Net increase (decrease) | 3,362,715 | 5,306,797 | (3,116,761 | ) | (645,003 | ) | 1,557,082 | 2,353,955 | 435,989 | 3,104,551 | ||||||||||||||||||||||||||||
Beginning shares outstanding | 13,462,763 | 8,155,966 | 17,524,289 | 18,169,292 | 5,844,648 | 3,490,693 | 16,791,462 | 13,686,911 | ||||||||||||||||||||||||||||||
Ending shares outstanding | 16,825,478 | 13,462,763 | 14,407,528 | 17,524,289 | 7,401,730 | 5,844,648 | 17,227,451 | 16,791,462 | ||||||||||||||||||||||||||||||
PL Large-Cap Value Fund | PL Main Street Core Fund | PL Mid-Cap Equity Fund | PL Mid-Cap Growth Fund | |||||||||||||||||||||||||||||||||||
Six-Month Period ended 9/30/2014 | Year ended 3/31/2014 | Six-Month Period ended 9/30/2014 | Year ended 3/31/2014 | Six-Month Period ended 9/30/2014 | Year ended 3/31/2014 | Six-Month Period ended 9/30/2014 | Year ended 3/31/2014 | |||||||||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||||||||
Shares sold | 217,220 | — | 167,595 | 106,404 | 2,962,654 | — | 391,122 | 1,744,846 | ||||||||||||||||||||||||||||||
Dividends and distributions reinvested | — | 323,698 | — | 158,444 | — | 1,071,334 | — | 2,433,940 | ||||||||||||||||||||||||||||||
Shares repurchased | (3,461,331 | ) | (780,279 | ) | (1,456,527 | ) | (339,403 | ) | (440,194 | ) | (302,329 | ) | (1,491,645 | ) | (241,182 | ) | ||||||||||||||||||||||
Net increase (decrease) | (3,244,111 | ) | (456,581 | ) | (1,288,932 | ) | (74,555 | ) | 2,522,460 | 769,005 | (1,100,523 | ) | 3,937,604 | |||||||||||||||||||||||||
Beginning shares outstanding | 22,758,449 | 23,215,030 | 17,341,280 | 17,415,835 | 13,348,559 | 12,579,554 | 11,109,920 | 7,172,316 | ||||||||||||||||||||||||||||||
Ending shares outstanding | 19,514,338 | 22,758,449 | 16,052,348 | 17,341,280 | 15,871,019 | 13,348,559 | 10,009,397 | 11,109,920 | ||||||||||||||||||||||||||||||
PL Small-Cap Growth Fund | PL Small-Cap Value Fund | PL Real Estate Fund | PL Emerging Markets Fund | |||||||||||||||||||||||||||||||||||
Six-Month Period ended 9/30/2014 | Year ended 3/31/2014 | Six-Month Period ended 9/30/2014 | Year ended 3/31/2014 | Six-Month Period ended 9/30/2014 | Year ended 3/31/2014 | Six-Month Period ended 9/30/2014 | Year ended 3/31/2014 | |||||||||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||||||||
Shares sold | 1,647,600 | — | 253,012 | 121,843 | 89,836 | 793,474 | 295,356 | 2,507,794 | ||||||||||||||||||||||||||||||
Dividends and distributions reinvested | — | 96,170 | — | 606,473 | — | 85,987 | — | 248,156 | ||||||||||||||||||||||||||||||
Shares repurchased | (178,832 | ) | (69,764 | ) | (1,093,481 | ) | (167,437 | ) | (2,223,636 | ) | (74,154 | ) | (282,321 | ) | (153,903 | ) | ||||||||||||||||||||||
Net increase (decrease) | 1,468,768 | 26,406 | (840,469 | ) | 560,879 | (2,133,800 | ) | 805,307 | 13,035 | 2,602,047 | ||||||||||||||||||||||||||||
Beginning shares outstanding | 3,855,710 | 3,829,304 | 10,900,927 | 10,340,048 | 5,203,621 | 4,398,314 | 10,393,575 | 7,791,528 | ||||||||||||||||||||||||||||||
Ending shares outstanding | 5,324,478 | 3,855,710 | 10,060,458 | 10,900,927 | 3,069,821 | 5,203,621 | 10,406,610 | 10,393,575 | ||||||||||||||||||||||||||||||
PL International Large-Cap Fund | PL International Value Fund | PL Currency Strategies Fund | PL Global Absolute Return Fund | |||||||||||||||||||||||||||||||||||
Six-Month Period ended 9/30/2014 | Year ended 3/31/2014 | Six-Month Period ended 9/30/2014 | Year ended 3/31/2014 | Six-Month Period ended 9/30/2014 | Year ended 3/31/2014 | Six-Month Period ended 9/30/2014 | Year ended 3/31/2014 | |||||||||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||||||||
Shares sold | 3,154,681 | 1,116,678 | 2,156,092 | 991,838 | 6,137,615 | 2,512,806 | 830,445 | 4,082,609 | ||||||||||||||||||||||||||||||
Dividends and distributions reinvested | — | 143,974 | — | 389,934 | — | 397,535 | — | 427,882 | ||||||||||||||||||||||||||||||
Shares repurchased | (1,009,460 | ) | (303,219 | ) | (2,022,987 | ) | (387,458 | ) | (452,227 | ) | (484,579 | ) | (3,557,762 | ) | (920,196 | ) | ||||||||||||||||||||||
Net increase (decrease) | 2,145,221 | 957,433 | 133,105 | 994,314 | 5,685,388 | 2,425,762 | (2,727,317 | ) | 3,590,295 | |||||||||||||||||||||||||||||
Beginning shares outstanding | 13,031,396 | 12,073,963 | 17,094,756 | 16,100,442 | 13,920,582 | 11,494,820 | 20,470,213 | 16,879,918 | ||||||||||||||||||||||||||||||
Ending shares outstanding | 15,176,617 | 13,031,396 | 17,227,861 | 17,094,756 | 19,605,970 | 13,920,582 | 17,742,896 | 20,470,213 |
C-22
PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
PL Precious Metals Fund | ||||||||||||||||||||||||||
Six-Month Period ended 9/30/2014 | Year ended 3/31/2014 | |||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||
Shares sold | 892,588 | 7,061,450 | ||||||||||||||||||||||||
Dividends and distributions reinvested | — | 87,413 | ||||||||||||||||||||||||
Shares repurchased | (8,598,308 | ) | (413,167 | ) | ||||||||||||||||||||||
Net increase (decrease) | (7,705,720 | ) | 6,735,696 | |||||||||||||||||||||||
Beginning shares outstanding | 14,759,284 | 8,023,588 | ||||||||||||||||||||||||
Ending shares outstanding | 7,053,564 | 14,759,284 |
C-23
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, 2014 to September 30, 2014.
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 09/30/14” 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 04/01/14-09/30/14” 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, 2014 to September 30, 2014.
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 04/01/14-09/30/14.”
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 Notes 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. 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 04/01/14 | Ending Account Value at 09/30/14 | Annualized Expense Ratio | Expenses Paid During the Period 04/1/2014 - 09/30/2014 (1) | |||||||||||||
PL Floating Rate Loan Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $1,002.00 | 0.80% | $4.01 | ||||||||||||
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 | $1,018.10 | 0.57% | $2.88 | ||||||||||||
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 | $1,022.30 | 0.55% | $2.79 | ||||||||||||
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 | $1,004.00 | 0.55% | $2.76 | ||||||||||||
Hypothetical | ||||||||||||||||
Class P | $1,000.00 | $1,022.31 | 0.55% | $2.79 | ||||||||||||
PL Emerging Markets Debt Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $1,005.20 | 0.94% | $4.73 | ||||||||||||
Hypothetical | ||||||||||||||||
Class P | $1,000.00 | $1,020.36 | 0.94% | $4.76 | ||||||||||||
PL Comstock Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $1,052.80 | 0.89% | $4.58 | ||||||||||||
Hypothetical | ||||||||||||||||
Class P | $1,000.00 | $1,020.61 | 0.89% | $4.51 | ||||||||||||
PL Growth Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $1,039.20 | 0.70% | $3.58 | ||||||||||||
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 | $1,050.60 | 0.86% | $4.42 | ||||||||||||
Hypothetical | ||||||||||||||||
Class P | $1,000.00 | $1,020.76 | 0.86% | $4.36 | ||||||||||||
PL Large-Cap Value Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $1,049.70 | 0.80% | $4.11 | ||||||||||||
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 04/01/14 | Ending Account Value at 09/30/14 | Annualized Expense Ratio | Expenses Paid During the Period 04/1/2014 - 09/30/2014 (1) | |||||||||||||
PL Main Street Core Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $1,060.60 | 0.60% | $3.10 | ||||||||||||
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 | $998.40 | 0.80% | $4.01 | ||||||||||||
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 | $1,007.30 | 0.80% | $4.03 | ||||||||||||
Hypothetical | ||||||||||||||||
Class P | $1,000.00 | $1,021.06 | 0.80% | $4.05 | ||||||||||||
PL Small-Cap Growth Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $940.10 | 0.75% | $3.65 | ||||||||||||
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 | $952.00 | 0.90% | $4.40 | ||||||||||||
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 | $1,040.20 | 1.05% | $5.37 | ||||||||||||
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 | $1,040.70 | 0.95% | $4.86 | ||||||||||||
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 | $988.60 | 1.00% | $4.99 | ||||||||||||
Hypothetical | ||||||||||||||||
Class P | $1,000.00 | $1,020.05 | 1.00% | $5.06 | ||||||||||||
PL International Value Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $962.20 | 0.80% | $3.94 | ||||||||||||
Hypothetical | ||||||||||||||||
Class P | $1,000.00 | $1,021.06 | 0.80% | $4.05 |
Beginning Account Value at 04/01/14 | Ending Account Value at 09/30/14 | Annualized Expense Ratio | Expenses Paid During the Period 04/1/2014 - 09/30/2014 (1) | |||||||||||||
PL Currency Strategies Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $1,069.10 | 0.85% | $4.41 | ||||||||||||
Hypothetical | ||||||||||||||||
Class P | $1,000.00 | $1,020.81 | 0.85% | $4.31 | ||||||||||||
PL Global Absolute Return Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $1,047.50 | 1.11% | $5.70 | ||||||||||||
Hypothetical | ||||||||||||||||
Class P | $1,000.00 | $1,019.50 | 1.11% | $5.62 | ||||||||||||
PL Precious Metals Fund | ||||||||||||||||
Actual Fund Return |
| |||||||||||||||
Class P | $1,000.00 | $940.60 | 0.89% | $4.33 | ||||||||||||
Hypothetical | ||||||||||||||||
Class P | $1,000.00 | $1,020.61 | 0.89% | $4.51 |
(1) | Expenses paid during the period are equal to the fund's annualized expense ratio (shown in table above), multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year then divided by 365 days. |
D-2
PACIFIC LIFE FUNDS
APPROVAL OF SUB-ADVISORY AGREEMENTS
(Unaudited)
I. Introduction and Background
The Board of Trustees (the “Trustees” or “Board”) of Pacific Life Funds (the “Trust”) oversees the management of each of the separate funds of the Trust (each a “Fund” and collectively, the “Funds”) and, as required by Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”), initially approves and determines annually whether to renew the investment advisory agreement (the “Advisory Agreement”) with Pacific Life Fund Advisors LLC (“PLFA”) and each sub-advisory agreement (the “Sub-Advisory Agreements,” together with the Advisory Agreement, the “Agreements”) with the various sub-advisers (the “Sub-Advisers”). PLFA serves as the investment adviser for all of the Funds and directly manages the PL Short Duration, PL Income, PL Strategic Income, PL Floating Rate Income, PL Limited Duration High Income, and PL High Income Funds (the “PAM Managed Funds”) under the name Pacific Asset Management (“PAM”) and the PL Portfolio Optimization Conservative, PL Portfolio Optimization Moderate-Conservative, PL Portfolio Optimization Moderate, PL Portfolio Optimization Moderate-Aggressive, and PL Portfolio Optimization Aggressive Funds (the “Asset Allocation Funds,” and together with the PAM Managed Funds, the “Directly Managed Funds”). For all other Funds, PLFA has retained other firms to serve as Sub-Advisers under PLFA’s supervision. The Board, including all of the Trustees who are not “interested persons,” as that term is defined in the 1940 Act (“Independent Trustees”), last renewed the Agreements at an in-person meeting of the Trustees held on December 11, 2013.1 The description below does not relate to the annual renewal of the Advisory Agreement and Sub-Advisory Agreements discussed above, but to approvals for the PL Inflation Managed and PL Managed Bond Funds, as described in further detail below. Under the 1940 Act, a change in a Sub-Adviser, a change in the compensation paid to a Sub-Adviser, or an assignment of any Sub-Advisory Agreement requires shareholder approval of a new Sub-Advisory Agreement. However, under an exemptive order issued to Pacific Life Insurance Company and the Trust by the Securities and Exchange Commission (“SEC”) on October 13, 1999 and relied upon by PLFA, in accordance with the terms of the exemptive order, PLFA can hire, terminate and replace, as applicable, Sub-Advisers and enter into new Sub-Advisory Agreements (except, as a general matter, Sub-Advisers affiliated with PLFA) without shareholder approval.
The Trustees’ determinations were made on the basis of each Trustee’s business judgment after consideration of all the information presented. In reviewing the materials presented and in considering the information in the management presentations, the Trustees did not identify any single issue or particular information that, in isolation, would be a controlling factor in making a final decision regarding the proposed Agreements. Individual Trustees may have given different weights to certain factors and assigned various degrees of materiality to information received in connection with the approval process. The following summary describes the most important, but not all, of the factors considered by the Trustees in approving the Agreements, and in the case of the Independent Trustees, certain factors were considered in light of the legal advice furnished to them by independent legal counsel. This discussion is not intended to be all-inclusive.
II. Board Consideration of the New Sub-Advisory Agreements
PL Inflation Managed Fund
At an in-person meeting on September 16-17, 2014, based upon a recommendation from PLFA, the Board, including all of the Independent Trustees, approved, effective December 31, 2014, (1) a new Sub-Advisory Agreement with Western Asset Management Company (“WAMCO”) with respect to the PL Inflation Managed Fund (the “Inflation Managed Sub-Advisory Agreement”); and (2) sub-advisory agreements between WAMCO and three WAMCO affiliates: Western Asset Management Company Limited, Western Asset Management Company Pte. Ltd. and Western Asset Management Company Ltd. (the “Sub-Advisory Affiliates” and together with WAMCO, “Western Asset”), and appointed Western Asset as co-sub-adviser (“co-Sub-Adviser”) for this Fund. Western Asset’s appointment as co-Sub-Adviser and the Board’s approval of the Inflation Managed Sub-Advisory Agreement and the sub-advisory agreements by and among WAMCO and the Sub-Advisory Affiliates (the “Sub-Advisory Affiliates Agreements”) were made in accordance with the exemptive order issued by the SEC with regard to the Trust and do not require shareholder approval.
In evaluating the Inflation Managed Sub-Advisory Agreement and Sub-Advisory Affiliates Agreements, the Board, including the Independent Trustees, considered the factors described below. Additionally, the Board considered PLFA’s previous recommendation of Western Asset as Sub-Adviser of the Inflation Strategy Portfolio of Pacific Select Fund. The Board noted the due diligence conducted by PLFA on Western Asset and the strategy to be used for the PL Inflation Managed Fund and PLFA’s recommendation of Western Asset to serve as an additional Sub-Adviser of the Fund. The Trustees also considered that PLFA has historically exercised diligence in monitoring the performance of the Sub-Advisers, and has recommended and taken measures to attempt to remedy relative underperformance by a Fund when PLFA and the Board believed appropriate. Prior to making a decision the Trustees also considered the report of the PLFA Conflicts Review Committee.
In evaluating the Inflation Managed Sub-Advisory Agreement, the Board, including all the Independent Trustees, considered the following factors, among others:
1. Nature, Extent and Quality of Services to be Provided
The Trustees considered the benefits to shareholders of retaining Western Asset as co-Sub-Adviser to the PL Inflation Managed Fund, particularly in light of the nature, extent, and quality of the services expected to be provided by Western Asset. In this regard, the Trustees considered various materials relating to the proposed co-Sub-Adviser, including copies of the proposed Inflation Managed Sub-Advisory Agreement; copies of Western Asset’s Form ADV; financial information; and other information deemed relevant to the Trustees’ evaluation, including comprehensive assessments from senior management of PLFA.
1 | At the December 11th meeting, the Board did not consider the continuance of the Fund Management Agreements relating to the PL Large-Cap Growth, PL Mid-Cap Growth, PL Growth and PL Mid-Cap Equity Funds, as those agreements were not up for renewal at that time. |
D-3
PACIFIC LIFE FUNDS
APPROVAL OF SUB-ADVISORY AGREEMENTS (Continued)
(Unaudited)
The Trustees considered that under the Inflation Managed Sub-Advisory Agreement, Western Asset would be responsible for providing the investment management services for a portion of the Fund’s assets, including investment research, advice, supervision of investment management services provided by the Sub-Advisory Affiliates, and determining which securities would be purchased or sold by that portion of the Fund. The Trustees considered the quality of the management services expected to be provided to the PL Inflation Managed Fund over both the short- and long-term, the organizational depth and resources of Western Asset, including the background and experience of Western Asset’s management and the expertise of the portfolio 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 that they had previously reviewed and approved Western Asset’s written compliance policies and procedures and that the Trust’s CCO previously provided an assessment of Western Asset’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 due diligence PLFA conducted with respect to Western Asset, and were aided by the assessment and recommendation of PLFA and the in-person presentation and materials provided by Western Asset.
The Board concluded it was satisfied with the nature, extent and quality of the investment management services anticipated to be provided to the PL Inflation Managed Fund by Western Asset under the Inflation Managed Sub-Advisory Agreement, including the sub-advisory agreements by and among WAMCO and the Sub-Advisory Affiliates (the “Sub-Advisory Affiliates Agreements”).
2. Performance
The Trustees considered PLFA’s efforts to identify advisory firms that are qualified to manage an inflation-indexed fixed income strategy and PLFA’s identification of Western Asset to serve as Sub-Adviser with regard to a portion of the PL Inflation Managed Fund’s day-to-day investment activities. The Trustees considered factors concerning performance in connection with their consideration of this matter and in connection with approval of the related Inflation Managed Sub-Advisory Agreement, including the factors described below.
The Trustees considered that Western Asset would be managing its allocation in the PL Inflation Managed Fund using a strategy similar to the strategy it uses to manage the Inflation Strategy Portfolio of Pacific Select Fund, and that the same Western Asset portfolio management team that currently manages the Inflation Strategy Portfolio would co-manage the PL Inflation Managed Fund. The Trustees considered information about the performance of the Inflation Strategy Portfolio and a composite that reflects the performance of Western Asset’s U.S. Treasury Inflation Protection Securities (“TIPS”) strategy (the “Composite”). The Trustees considered the Inflation Strategy Portfolio’s performance against a pertinent benchmark and against the applicable peer group for the year-to-date, one- and three-year periods as of June 30, 2014, and the Composite’s performance against a pertinent benchmark for the year-to-date, one-, three-, five- and ten-year periods as of June 30, 2014. The Trustees also considered the Inflation Strategy Portfolio’s performance against a pertinent benchmark and an applicable peer group for the previous two calendar years, and the Composite’s performance against a pertinent benchmark for the previous five calendar years. Additionally, the Trustees considered the Inflation Strategy Portfolio’s standard deviation against a pertinent benchmark and an applicable peer group for the three-year period as of June 30, 2014 and the Composite’s tracking error against an applicable peer group for the three- and five-year periods as of June 30, 2014.
The Trustees considered additional information about the historical performance of a fund managed by Western Asset using similar investment strategies as those proposed for the PL Inflation Managed Fund against a pertinent benchmark for the one-, three-, five- and ten-year and since inception periods, as applicable, as of June 30, 2014. In addition, the Trustees considered the need for Western Asset to adhere to the Fund’s general investment mandate in order to function appropriately in the PL Portfolio Optimization Funds.
The Board determined that Western Asset’s performance record with respect to similarly managed accounts was acceptable.
3. Advisory and Sub-Advisory Fees
The Trustees considered information regarding the comparative advisory fees charged under other investment advisory contracts of the Sub-Adviser with regard to another fund with substantially similar investment strategies as the PL Inflation Managed Fund. The Trustees also considered that the proposed sub-advisory fees payable to Western Asset under the Sub-Advisory Agreement contain breakpoints and that the sub-advisory fees will be based on the combined net assets of the Inflation Strategy Portfolio of Pacific Select Fund and Western Asset’s portion of the PL Inflation Managed Fund. The Trustees also considered that the advisory fee schedule would remain unchanged from the current fee schedule for the Fund, but that PLFA had agreed to an advisory fee waiver that would reduce the total advisory fees paid by shareholders. The Trustees considered that although the amount of the advisory fee retained by PLFA was expected to increase as a result of the addition of Western Asset as co-Sub-Adviser of the Fund, the Fund’s advisory fee is competitive with peers.
In comparing the proposed fees to be paid by the PL Inflation Managed Fund to fees charged by Western Asset for other similarly managed funds, the Trustees noted that there were differences in the nature of the accounts. These differences explained differences in fee schedules.
The Trustees noted that the fee rates were the result of arms’-length negotiations between PLFA and Western Asset, and that the PL Inflation Managed Fund’s sub-advisory fees are paid by PLFA and are not paid directly by the PL Inflation Managed Fund.
Additionally, the Trustees considered that there are certain costs associated with adding a sub-adviser, but that the ongoing operating expenses paid by the shareholders were not expected to materially increase as a result of this sub-adviser addition.
The Board concluded that the compensation payable under the Inflation Managed Sub-Advisory Agreement and the Sub-Advisory Affiliates Agreements is fair and reasonable.
D-4
PACIFIC LIFE FUNDS
APPROVAL OF SUB-ADVISORY AGREEMENTS (Continued)
(Unaudited)
4. Costs, Level of Profits and Economies of Scale
The Trustees considered information regarding the costs to Western Asset of sub-advising a portion of the PL Inflation Managed Fund and the projected profitability of the Inflation Managed Sub-Advisory Agreement to Western Asset, to the extent practicable based on the financial information provided by Western Asset. The Trustees noted that any assessment of projected profitability would involve assumptions regarding expense allocations and other factors. The Trustees focused their consideration on other information provided in connection with this matter, given the arms’-length nature of the relationship between PLFA and Western Asset with respect to the negotiation of Fund sub-advisory fees, the fact that such fees are paid by PLFA and the fact that the projected profitability of the Inflation Managed Sub-Advisory Agreement to Western Asset is an estimate because it had not yet begun to manage the Fund.
The Board concluded that the PL Inflation Managed Fund’s fee structure reflected in the Inflation Managed Sub-Advisory Agreement and Sub-Advisory Affiliates Agreements is fair and reasonable.
5. Ancillary Benefits
The Trustees received from PLFA and Western Asset information concerning other benefits that may be received by Western Asset and its affiliates as a result of their relationship with the PL Inflation Managed Fund, including commissions that may be paid to broker-dealers affiliated with the Sub-Adviser and the anticipated use of soft-dollars by the Sub-Adviser. In this regard, the Trustees noted that Western Asset represented that it does not anticipate utilizing an affiliated broker-dealer and that it does not anticipate using soft dollar credits generated by Fund commissions to pay for research services. The Trustees considered potential benefits to be derived by Western Asset 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 Inflation Managed Sub-Advisory Agreement and the Sub-Advisory Affiliates Agreements are in the best interests of the PL Inflation Managed Fund and its shareholders; and (ii) the compensation payable under the Inflation Managed Sub-Advisory Agreement and the Sub-Advisory Affiliates Agreements 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.
PL Managed Bond Fund
At an in-person meeting on June 18, 2014, based upon a recommendation from PLFA, the Board, including all of the Independent Trustees, approved, effective August 1, 2014: (1) a new Sub-Advisory Agreement with WAMCO with respect to the PL Managed Bond Fund (the “Managed Bond Sub-Advisory Agreement”); and (2) Sub-Advisory Affiliates Agreements between WAMCO and the Sub-Advisory Affiliates, and appointed Western Asset as co-Sub-Adviser for this Fund. Western Asset’s appointment as co-Sub-Adviser and the Board’s approval of the Managed Bond Sub-Advisory Agreement and the Sub-Advisory Affiliates Agreements were made in accordance with the exemptive order issued by the SEC with regard to the Trust and do not require shareholder approval.
In evaluating the Managed Bond Sub-Advisory Agreement and Sub-Advisory Affiliates Agreements, the Board, including the Independent Trustees, considered the factors described below. Additionally, the Board considered PLFA’s previous recommendation of Western Asset as sub-adviser of the Diversified Bond Portfolio of Pacific Select Fund. The Board noted the due diligence conducted by PLFA on Western Asset and the strategy to be used for the Fund and PLFA’s recommendation of Western Asset to serve as an additional Sub-Adviser of the Fund. The Trustees also considered that PLFA has historically exercised diligence in monitoring the performance of the sub-advisers, and has recommended and taken measures to attempt to remedy relative underperformance by a Fund when PLFA and the Board believed appropriate. Prior to making a decision the Board also considered the report of the PLFA Conflicts Review Committee.
In evaluating the Managed Bond Sub-Advisory Agreement, the Board, including all the Independent Trustees, considered the following factors, among others:
1. Nature, Extent and Quality of Services to be Provided
The Trustees considered the benefits to shareholders of retaining Western Asset as co-Sub-Adviser to the PL Managed Bond Fund, particularly in light of the nature, extent, and quality of the services expected to be provided by Western Asset. In this regard, the Trustees considered various materials relating to the proposed co-Sub-Adviser, including copies of the proposed Managed Bond Sub-Advisory Agreement; copies of Western Asset’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 Managed Bond Sub-Advisory Agreement, Western Asset would be responsible for providing the investment management services for a portion of the Fund’s assets, including investment research, advice, supervision of investment management services provided by the Sub-Advisory Affiliates, and determining which securities would be purchased or sold by that portion of the Fund. The Trustees considered the quality of the management services expected to be provided to the PL Managed Bond Fund over both the short- and long-term, the organizational depth and resources of Western Asset, including the background and experience of Western Asset’s management and the expertise of the portfolio 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 that the Trust’s CCO had reviewed the written compliance policies and procedures of Western Asset, including the assessment of its compliance program as required under Rule 38a-1 of the 1940 Act, and its code of ethics, prior to the effectiveness of the new Managed Bond Sub-Advisory Agreement. In making these assessments, the Trustees took note of the due diligence PLFA conducted with respect to Western Asset, and were aided by the assessment and recommendation of PLFA and the materials provided by Western Asset.
D-5
PACIFIC LIFE FUNDS
APPROVAL OF SUB-ADVISORY AGREEMENTS (Continued)
(Unaudited)
The Board concluded it was satisfied with the nature, extent and quality of the investment management services anticipated to be provided to the PL Managed Bond Fund by Western Asset under the Managed Bond Sub-Advisory Agreement, including the Sub-Advisory Affiliates Agreements.
2. Performance
The Trustees considered PLFA’s efforts and process to search for and screen advisory firms that are qualified to manage a fixed income strategy, and PLFA’s identification of Western Asset to serve as Sub-Adviser with regard to a portion of the PL Managed Bond Fund’s day-to-day investment activities. The Trustees considered factors concerning performance in connection with their consideration of this matter and in connection with approval of the related Managed Bond Sub-Advisory Agreement, including the factors described below.
The Trustees considered that Western Asset would be managing its allocation in the PL Managed Bond Fund in the same style as the Diversified Bond Portfolio of Pacific Select Fund, and that the same Western Asset portfolio management team that currently manages the Diversified Bond Portfolio would co-manage the PL Managed Bond Fund. The Trustees considered information about the performance of the Diversified Bond Portfolio (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 April 30, 2014. The Trustees also considered the Comparable Performance against a pertinent benchmark and an applicable peer group for the previous four calendar years. Additionally, the Trustees considered the Diversified Bond Portfolio’s standard deviation and information ratio for the three- and five-year periods as of April 30, 2014. The Trustees also considered the hypothetical performance of the PL Managed Bond Fund with Western Asset as co-Sub-Adviser over the year-to-date, one-, three- and five-year periods as of April 30, 2014.
The Trustees considered additional information about the historical performance of funds managed by Western Asset using similar investment strategies as those proposed for the PL Managed Bond Fund against a pertinent benchmark for the one-, three-, five- and ten-year and since inception periods, as applicable, as of March 31, 2014. In addition, the Trustees considered the need for Western Asset to adhere to the Fund’s general investment mandate in order to function appropriately in the PL Portfolio Optimization Funds.
The Board determined that Western Asset’s performance record with respect to similarly managed accounts was acceptable.
3. Advisory and Sub-Advisory Fees
The Trustees considered information regarding the comparative advisory fees charged under other investment advisory contracts of the Sub-Adviser with regard to other funds with substantially similar investment strategies as the PL Managed Bond Fund. The Trustees also considered that the proposed sub-advisory fees payable to Western Asset under the Sub-Advisory Agreement contain breakpoints and that the sub-advisory fees will be based on the combined net assets of the Diversified Bond Portfolio of Pacific Select Fund and Western Asset’s portion of the PL Managed Bond Fund. The Trustees also considered that the advisory fee schedule would remain unchanged from the current fee schedule for the Fund. The Trustees considered that although the amount of the advisory fee retained by PLFA was expected to increase as a result of the addition of Western Asset as co-Sub-Adviser of the Fund, the Fund’s advisory fee is competitive with peers. In comparing the proposed fees to be paid by the PL Managed Bond Fund to fees charged by Western Asset for other similarly managed funds, the Trustees noted that there were differences in the nature of the accounts. These differences explained differences in fee schedules. The Trustees noted that the fee rates were the result of arms’-length negotiations between PLFA and Western Asset, and that the PL Managed Bond Fund’s sub-advisory fees are paid by PLFA and are not paid directly by the PL Managed Bond Fund.
Additionally, the Trustees considered that there are certain costs associated with adding a sub-adviser, but that the ongoing operating expenses paid by the shareholders were not expected to materially increase as a result of this sub-adviser addition.
The Board concluded that the compensation payable under the Managed Bond Sub-Advisory Agreement and the Sub-Advisory Affiliates Agreements is fair and reasonable.
4. Costs, Level of Profits and Economies of Scale
The Trustees considered information regarding the costs to Western Asset of sub-advising a portion of the PL Managed Bond Fund and the projected profitability of the Managed Bond Sub-Advisory Agreement to Western Asset, to the extent practicable based on the financial information provided by Western Asset. The Trustees noted that any assessment of projected profitability would involve assumptions regarding expense allocations and other factors. The Trustees focused their consideration on other information provided in connection with this matter, given the arms’-length nature of the relationship between PLFA and Western Asset with respect to the negotiation of Fund sub-advisory fees, the fact that such fees are paid by PLFA and the fact that the projected profitability of the Managed Bond Sub-Advisory Agreement to Western Asset is an estimate because it had not yet begun to manage the Fund.
The Board concluded that the PL Managed Bond Fund’s fee structure reflected in the Managed Bond Sub-Advisory Agreement and Sub-Advisory Affiliates Agreements is fair and reasonable.
5. Ancillary Benefits
The Trustees received from PLFA and Western Asset information concerning other benefits that may be received by Western Asset and its affiliates as a result of their relationship with the PL Managed Bond Fund, including commissions that may be paid to broker-dealers affiliated with the Sub-Adviser and the anticipated use of soft-dollars by the Sub-Adviser. In this regard, the Trustees noted that Western Asset represented that it does not anticipate utilizing an affiliated broker-dealer and that it does not anticipate using soft dollar credits generated by Fund commissions to pay for research services. The Trustees considered potential benefits to be derived by Western Asset and that such benefits were consistent with those generally derived by sub-advisers to mutual funds or were otherwise not unusual.
D-6
PACIFIC LIFE FUNDS
APPROVAL OF SUB-ADVISORY AGREEMENTS (Continued)
(Unaudited)
6. Conclusion
Based on their review, including the consideration of each of the factors referred to above, the Board found that: (i) the Managed Bond Sub-Advisory Agreement and the Sub-Advisory Affiliates Agreements are in the best interests of the PL Managed Bond Fund and its shareholders; and (ii) the compensation payable under the Managed Bond Sub-Advisory Agreement and the Sub-Advisory Affiliates Agreements 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-7
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 regulations and is available after filing (i) on the SEC’s Website at http://www.sec.gov; (ii) for review and copying at the SEC’s Public Reference Room in Washington, D.C. (information on the operations of the Public Reference Room may be obtained by calling the SEC at 1-800-SEC-0330); and (iii) on the Trust’s Webpage at http://www.pacificlife.com/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 the Trust’s fund managers voted proxies relating to fund securities during the most recent twelve-month period ended June 30. Such information is available after filing on the Trust’s’ Website and on the SEC’s Website noted below.
Information Relating to Investments Held by the Trust
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 http://www.pacificlife.com/pacificlifefunds.htm |
• | On the SEC’s Website at http://www.sec.gov |
• | Upon request by calling, without charge, 1-800-722-2333, 7 a.m. through 5 p.m. Pacific Time |
D-8
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. |
(b) | Not applicable. |
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Directors.
Item 11. Controls and Procedures.
(a) | The Chief Executive Officer 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) | 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 3, 2014 |
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 3, 2014 | ||
By: | /s/ Brian D. Klemens | |
Brian D. Klemens | ||
Treasurer (Principal Financial and Accounting Officer) | ||
Date: December 3, 2014 |