Pacific Funds Floating Rate Income - Class I (PLFRX) N-CSRS Certified semi-annual shareholder report (management investment company)

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 Fund Advisor General Counsel of Pacific Life Fund Advisors LLC
700 Newport Center Drive, P.O. Box 9000
Newport Beach, CA 92660

(Name and address of agent for service)

Copies to:
Jeffrey S. Puretz, Esq.
Dechert LLP
1775 I Street, N.W.
Washington D.C. 20006-2401

registrant’s telephone number, including area code: 949-219-6767

Date of fiscal year end: March 31

Date of reporting period: September 30, 2007

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).

TABLE OF CONTENTS

PACIFIC LIFE FUNDS
Schedules of Investments and Notes	A-1
Financial Statements:
Statements of Assets and Liabilities	B-1
Statements of Operations	B-7
Statements of Changes in Net Assets	B-10
Financial Highlights	C-1
Notes to Financial Statements	D-1
Disclosure of Fund Expenses	E-1
Where to Go for More Information	E-4

PACIFIC LIFE FUNDS
PL PORTFOLIO OPTIMIZATION CONSERVATIVE
Schedule of Investments
September 30, 2007 (Unaudited)

	Shares		Value
MUTUAL FUNDS - 98.77%
PL Money Market Fund ‘A’		2,520,905	$	2,520,905
PL International Value Fund ‘A’		79,357		1,237,174
PL Large-Cap Value Fund ‘A’		41,587		567,656
PL Short Duration Bond Fund ‘A’		919,649		9,122,915
PL Growth LT Fund ‘A’		40,881		590,729
PL Mid-Cap Value Fund ‘A’		79,482		897,346
PL Large-Cap Growth Fund ‘A’ *		54,082		573,271
PL International Large-Cap Fund ‘A’		33,312		572,963
PL Main Street® Core Fund ‘A’		141,884		1,742,335
PL Managed Bond Fund ‘A’		946,019		9,743,993
PL Inflation Managed Fund ‘A’		590,359		5,992,146
PL Comstock Fund ‘A’		106,065		1,510,365
Total Mutual Funds (Cost $33,589,276)				35,071,798
TOTAL INVESTMENTS - 98.77% (Cost $33,589,276)				35,071,798
OTHER ASSETS & LIABILITIES, NET - 1.23%				436,779
NET ASSETS - 100.00%			$	35,508,577

Note to Schedule of Investments

(a) As of September 30, 2007, the Fund was diversified as a percentage of net assets as follows:

Affiliated Fixed Income Funds	70.01	%
Affiliated Equity Funds	21.66	%
Affiliated Money Market Fund	7.10	%
	98.77	%
Other Assets & Liabilities, Net	1.23	%
	100.00	%

PACIFIC LIFE FUNDS
PL PORTFOLIO OPTIMIZATION MODERATE-CONSERVATIVE
Schedule of Investments
September 30, 2007 (Unaudited)

	Shares		Value
MUTUAL FUNDS - 97.55%
PL Money Market Fund ‘A’		3,703,551	$	3,703,551
PL Small-Cap Growth Fund ‘A’		153,683		1,902,597
PL International Value Fund ‘A’		425,049		6,626,514
PL Large-Cap Value Fund ‘A’		282,672		3,858,474
PL Short Duration Bond Fund ‘A’		1,607,428		15,945,691
PL Growth LT Fund ‘A’		208,065		3,006,546
PL Mid-Cap Value Fund ‘A’		377,423		4,261,102
PL Large-Cap Growth Fund ‘A’ *		180,622		1,914,596
PL International Large-Cap Fund ‘A’		322,858		5,553,164
PL Small-Cap Value Fund ‘A’ *		75,219		722,104
PL Main Street Core Fund ‘A’		559,260		6,867,712
PL Managed Bond Fund ‘A’		2,195,765		22,616,383
PL Inflation Managed Fund ‘A’		1,431,643		14,531,172
PL Comstock Fund ‘A’		566,261		8,063,562
PL Mid-Cap Growth Fund ‘A’		247,861		3,123,046
Total Mutual Funds (Cost $95,016,115)				102,696,214
TOTAL INVESTMENTS - 97.55% (Cost $95,016,115)				102,696,214
OTHER ASSETS & LIABILITIES, NET - 2.45%				2,578,106
NET ASSETS - 100.00%			$	105,274,320

Note to Schedule of Investments

(a) As of September 30, 2007, the Fund was diversified as a percentage of net assets as follows:

Affiliated Fixed Income Funds	50.43	%
Affiliated Equity Funds	43.60	%
Affiliated Money Market Fund	3.52	%
	97.55	%
Other Assets & Liabilities, Net	2.45	%
	100.00	%

See Notes to Financial Statements A-1 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL PORTFOLIO OPTIMIZATION MODERATE
Schedule of Investments
September 30, 2007 (Unaudited)

	Shares		Value
MUTUAL FUNDS - 99.41%
PL Small-Cap Growth Fund ‘A’		960,034	$	11,885,222
PL International Value Fund ‘A’		1,978,942		30,851,712
PL Large-Cap Value Fund ‘A’		1,426,670		19,474,050
PL Short Duration Bond Fund ‘A’		3,960,930		39,292,426
PL Growth LT Fund ‘A’		1,402,633		20,268,050
PL Mid-Cap Value Fund ‘A’		2,196,154		24,794,580
PL Large-Cap Growth Fund ‘A’ *		1,128,346		11,960,471
PL International Large-Cap Fund ‘A’		1,387,312		23,861,761
PL Small-Cap Value Fund ‘A’ *		235,829		2,263,963
PL Main Street Core Fund ‘A’		2,775,074		34,077,907
PL Emerging Markets Fund ‘A’		1,063,458		17,132,313
PL Managed Bond Fund ‘A’		6,135,340		63,194,007
PL Inflation Managed Fund ‘A’		4,727,062		47,979,682
PL Comstock Fund ‘A’		2,458,515		35,009,254
PL Mid-Cap Growth Fund ‘A’		1,967,942		24,796,069
PL Real Estate Fund ‘A’		787,756		10,492,913
Total Mutual Funds (Cost $374,318,659)				417,334,380
TOTAL INVESTMENTS - 99.41% (Cost $374,318,659)				417,334,380
OTHER ASSETS & LIABILITIES, NET - 0.59%				2,455,858
NET ASSETS - 100.00%			$	419,790,238

Note to Schedule of Investments

(a) As of September 30, 2007, the Fund was diversified as a percentage of net assets as follows:

Affiliated Equity Funds	63.57	%
Affiliated Fixed Income Funds	35.84	%
	99.41	%
Other Assets & Liabilities, Net	0.59	%
	100.00	%

PACIFIC LIFE FUNDS
PL PORTFOLIO OPTIMIZATION MODERATE-AGGRESSIVE
Schedule of Investments
September 30, 2007 (Unaudited)

	Shares		Value
MUTUAL FUNDS - 99.58%
PL Small-Cap Growth Fund ‘A’		1,779,597	$	22,031,416
PL International Value Fund ‘A’		2,779,825		43,337,473
PL Large-Cap Value Fund ‘A’		1,873,602		25,574,669
PL Short Duration Bond Fund ‘A’		1,322,758		13,121,758
PL Growth LT Fund ‘A’		2,154,167		31,127,717
PL Mid-Cap Value Fund ‘A’		2,900,906		32,751,230
PL Large-Cap Growth Fund ‘A’ *		1,257,603		13,330,597
PL International Large-Cap Fund ‘A’		2,284,474		39,292,952
PL Small-Cap Value Fund ‘A’ *		413,842		3,972,882
PL Main Street Core Fund ‘A’		3,549,088		43,582,800
PL Emerging Markets Fund ‘A’		1,484,463		23,914,692
PL Managed Bond Fund ‘A’		3,837,548		39,526,742
PL Inflation Managed Fund ‘A’		3,268,719		33,177,498
PL Comstock Fund ‘A’		2,909,882		41,436,716
PL Mid-Cap Growth Fund ‘A’		2,527,878		31,851,262
PL Real Estate Fund ‘A’		1,246,654		16,605,430
Total Mutual Funds (Cost $398,691,404)				454,635,834
TOTAL INVESTMENTS - 99.58% (Cost $398,691,404)				454,635,834
OTHER ASSETS & LIABILITIES, NET - 0.42%				1,935,433
NET ASSETS - 100.00%			$	456,571,267

Note to Schedule of Investments

(a) As of September 30, 2007, the Fund was diversified as a percentage of net assets as follows:

Affiliated Equity Funds	80.78	%
Affiliated Fixed Income Funds	18.80	%
	99.58	%
Other Assets & Liabilities, Net	0.42	%
	100.00	%

See Notes to Financial Statements A-2 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL PORTFOLIO OPTIMIZATION AGGRESSIVE
Schedule of Investments
September 30, 2007 (Unaudited)

	Shares		Value
MUTUAL FUNDS - 99.59%
PL Small-Cap Growth Fund ‘A’		1,119,021	$	13,853,481
PL International Value Fund ‘A’		1,786,922		27,858,107
PL Large-Cap Value Fund ‘A’		1,025,236		13,994,470
PL Growth LT Fund ‘A’		1,433,668		20,716,496
PL Mid-Cap Value Fund ‘A’		1,720,879		19,428,720
PL Large-Cap Growth Fund ‘A’ *		563,752		5,975,768
PL International Large-Cap Fund ‘A’		1,228,951		21,137,955
PL Small-Cap Value Fund ‘A’ *		569,072		5,463,096
PL Main Street Core Fund ‘A’		1,817,887		22,323,654
PL Emerging Markets Fund ‘A’		800,356		12,893,731
PL Comstock Fund ‘A’		1,509,120		21,489,862
PL Mid-Cap Growth Fund ‘A’		1,439,375		18,136,120
PL Real Estate Fund ‘A’		761,660		10,145,307
Total Mutual Funds (Cost $185,021,174)				213,416,767
TOTAL INVESTMENTS - 99.59% (Cost $185,021,174)				213,416,767
OTHER ASSETS & LIABILITIES, NET - 0.41%				882,475
NET ASSETS - 100.00%			$	214,299,242

Note to Schedule of Investments

(a) As of September 30, 2007, the Fund was diversified as a percentage of net assets as follows:

Affiliated Equity Funds	99.59	%
	99.59	%
Other Assets & Liabilities, Net	0.41	%
	100.00	%

See Notes to Financial Statements A-3 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL MONEY MARKET FUND
Schedule of Investments
September 30, 2007 (Unaudited)

	Principal Amount		Value
SHORT-TERM INVESTMENTS - 110.13%
Certificates of Deposit - 3.72%
Bank of Scotland PLC (United Kingdom) 5.331% due 10/27/08 §	$	500,000	$	500,000
Royal Bank of Canada NY 5.710% due 12/05/07 §		500,000		499,982
				999,982
Commercial Paper - 81.10%
3MCo
4.780% due 10/09/07		300,000		299,681
4.900% due 11/05/07		500,000		497,618
Abbott Laboratories 4.970% due 10/16/07		650,000		648,654
Air Products & Chemicals Inc 4.850% due 10/04/07		800,000		799,677
Archer-Daniels-Midland Co
4.750% due 11/13/07		500,000		497,163
4.780% due 10/23/07		400,000		398,832
Astrazeneca PLC (United Kingdom)
5.450% due 11/05/07		400,000		397,881
5.540% due 12/14/07		450,000		444,876
AT&T Inc 4.750% due 10/31/07		750,000		747,031
E.I. du Pont de Nemours & Co 4.730% due 10/30/07		895,000		891,590
Eaton Corp 4.750% due 10/01/07		740,000		740,000
Electricite de France (France) 5.100% due 10/04/07		900,000		899,617
Hewlett-Packard Co 5.240% due 10/19/07		450,000		448,821
Honeywell International Inc 5.210% due 10/23/07		760,000		757,580
Illinois Tool Works Inc 4.750% due 10/01/07		500,000		500,000
International Business Machines Corp 4.730% due 10/01/07		850,000		850,000
John Deere Capital Corp 5.180% due 11/08/07		650,000		646,446
Johnson & Johnson 5.000% due 10/30/07		750,000		746,979
Kimberly-Clark Worldwide Inc. 4.750% due 10/23/07		700,000		697,968
Medtronic Inc 4.850% due 10/04/07		500,000		499,798
Merck & Co Inc 4.720% due 10/26/07		1,000,000		996,722
National Rural Utilities Cooperative Finance Corp 5.300% due 10/09/07		750,000		749,117
Parker-Hannifin Corp 5.250% due 10/02/07		500,000		499,927
PepsiCo Inc 4.730% due 10/19/07		750,000		748,226
Pitney Bowes Inc 4.720% due 10/16/07		450,000		449,115
Societe Generale North America Inc. 5.000% due 10/01/07		750,000		750,000
Southern Co 4.800% due 10/12/07		500,000		499,267
SYSCO Corp 4.770% due 10/11/07		750,000		749,006
The Coca-Cola Co 4.950% due 10/26/07		800,000		797,250
The Procter & Gamble Co 5.210% due 10/31/07		750,000		746,744
The Target Corp 4.750% due 10/29/07		900,000		896,675

United Parcel Service Inc 5.200% due 10/01/07	680,000	680,000
Wal-Mart Stores Inc 5.020% due 10/23/07	800,000	797,546
		21,769,807
Corporate Notes - 14.88%
Allstate Life Global Funding Trusts 5.794% due 09/11/08 §	500,000	500,000
American Express Bank FSB 5.864% due 09/18/08 §	800,000	800,000
American Honda Finance Corp 5.470% due 02/20/08 ~§	400,000	400,000
Caterpillar Financial Services Corp 5.560% due 02/11/08 §	500,000	500,194
General Electric Capital Corp 4.250% due 01/15/08	546,000	543,740
Toyota Motor Credit Corp 5.591% due 09/05/08 §	750,000	750,000
Wells Fargo & Co 5.764% due 03/10/08 §	500,000	500,175
		3,994,109
U.S. Government Agency Issues - 10.43%
Federal Home Loan Bank
4.700% due 10/03/08	2,000,000	2,000,000
5.250% due 12/26/07	350,000	350,000
5.250% due 02/01/08	450,000	450,000
		2,800,000

	Shares
Money Market Fund - 0.00%
BlackRock Liquidity Funds Institutional TempFund		844		844
Total Short-Term Investments (Amortized Cost $29,564,742)				29,564,742
TOTAL INVESTMENTS - 110.13% (Amortized Cost $29,564,742)				29,564,742
OTHER ASSETS & LIABILITIES, NET - (10.13%)				(2,720,160	)
NET ASSETS - 100.00%			$	26,844,582

Notes to Schedule of Investments

(a) As of September 30, 2007, the Fund was diversified as a percentage of net assets as follows:

Commercial Paper	81.10	%
Corporate Notes	14.88	%
U.S. Government Agency Issues	10.43	%
Certificates of Deposit	3.72	%
	110.13	%
Other Assets & Liabilities, Net	(10.13	%)
	100.00	%

(b) Short-term securities reflect either the stated coupon rate or the annualized effective yield on the date of purchase for discounted securities.

See Notes to Financial Statements A-4 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL SMALL-CAP GROWTH FUND
Schedule of Investments
September 30, 2007 (Unaudited)

	Shares		Value
COMMON STOCKS - 98.21%
Autos & Transportation - 1.68%
AirTran Holdings Inc *		37,300	$	367,032
Tenneco Inc *		16,050		497,711
				864,743
Consumer Discretionary - 18.22%
Ameristar Casinos Inc		18,100		508,610
Bally Technologies Inc *		19,100		676,712
bebe Stores Inc		28,200		412,565
Carter’s Inc *		17,300		345,134
Coldwater Creek Inc *		24,900		270,413
Ctrip.com International Ltd ADR (Cayman)		11,450		593,110
DSW Inc ‘A’ *		12,700		319,658
FTI Consulting Inc *		12,250		616,298
GSI Commerce Inc *		18,700		497,420
Iconix Brand Group Inc *		28,100		668,498
Life Time Fitness Inc *		10,700		656,337
LKQ Corp *		19,600		682,275
McCormick & Schmick’s Seafood Restaurants Inc *		17,850		336,115
Orient-Express Hotels Ltd ‘A’ (Bermuda)		700		35,889
Phillips-Van Heusen Corp		9,350		490,688
Physicians Formula Holdings Inc *		22,900		268,617
priceline.com Inc *		7,050		625,688
Scientific Games Corp ‘A’ *		11,400		428,640
TeleTech Holdings Inc *		14,800		353,868
The Geo Group Inc *		20,250		599,603
				9,386,138
Consumer Staples - 1.30%
The Hain Celestial Group Inc *		20,800		668,304
Energy - 5.13%
Carrizo Oil & Gas Inc *		12,800		574,208
Dril-Quip Inc *		12,250		604,538
Mariner Energy Inc *		22,900		474,259
North American Energy Partners Inc * (Canada)		20,200		348,652
Petrobank Energy & Resources Ltd * (Canada)		16,700		639,860
				2,641,517
Financial Services - 10.67%
Affiliated Managers Group Inc *		4,700		599,297
Boston Private Financial Holdings Inc		18,800		523,392
First Mercury Financial Corp		25,200		542,052
First Midwest Bancorp Inc *		11,000		375,760
FirstFed Financial Corp *		7,400		366,670
GFI Group Inc *		6,350		546,862
Greenhill & Co Inc		8,400		512,820
HFF Inc ‘A’ *		22,100		262,327
Signature Bank *		13,950		491,459
Williams Scotsman International Inc *		18,050		500,166
Wintrust Financial Corp		6,050		258,275
Wright Express Corp *		14,100		514,509
				5,493,589
Health Care - 17.92%
Acorda Therapeutics Inc *		14,100		258,735
Adams Respiratory Therapeutics Inc *		12,300		474,042
Allscripts Healthcare Solutions Inc *		24,100		651,423
BioMarin Pharmaceuticals Inc *		11,050		275,145
DexCom Inc *		38,500		384,615
Gen-Probe Inc *		9,150		609,207
Gentiva Health Services Inc *		17,500		336,175
Hologic Inc *		10,700		652,700
Illumina Inc *		10,350		536,958

Inverness Medical Innovations Inc *	8,700	481,284
Kyphon Inc *	5,850	409,500
Omrix Biopharmaceuticals Inc *	15,550	549,071
Onyx Pharmaceuticals Inc *	10,600	461,312
PAREXEL International Corp *	14,400	594,288
Progenics Pharmaceuticals Inc *	16,600	367,026
Psychiatric Solutions Inc *	16,800	659,904
Regeneron Pharmaceuticals Inc *	14,200	252,760
Savient Pharmaceuticals Inc *	21,000	305,550
Thoratec Corp *	20,500	424,145
United Therapeutics Corp *	8,200	545,628
		9,229,468
Integrated Oils - 0.60%
Concho Resources Inc *	20,900	309,529
Materials & Processing - 8.10%
CLARCOR Inc	13,150	449,862
Greif Inc ‘A’	7,700	467,236
RBC Bearings Inc *	15,600	598,260
Silgan Holdings Inc	10,600	569,750
Thompson Creek Metals Co Inc * (Canada)	24,900	549,495
Uranium One Inc * (Canada)	34,100	450,827
URS Corp *	11,100	626,595
Zoltek Cos Inc *	10,550	460,297
		4,172,322
Producer Durables - 7.76%
Actuant Corp ‘A’	8,350	542,500
BE Aerospace Inc *	15,200	631,256
Bucyrus International Inc ‘A’	8,100	590,733
Esterline Technologies Corp *	11,300	644,665
Polycom Inc *	18,300	491,538
SBA Communications Corp ‘A’ *	19,250	679,140
Varian Semiconductor Equipment Associates Inc *	7,750	414,780
		3,994,612
Technology - 22.98%
Acme Packet Inc *	26,900	414,798
American Reprographics Co *	1,950	36,504
ANSYS Inc *	17,600	601,392
Atheros Communications Inc *	19,600	587,412
Cypress Semiconductor Corp *	19,000	554,990
DealerTrack Holdings Inc *	16,000	670,080
Digital River Inc *	10,500	469,875
FormFactor Inc *	10,850	481,415
Foundry Networks Inc *	21,900	389,163
IHS Inc ‘A’ *	12,000	677,880
Mellanox Technologies Ltd * (Israel)	26,700	521,451
NICE Systems Ltd ADR * (Israel)	16,950	607,488
Omniture Inc *	13,000	394,160
ON Semiconductor Corp *	49,550	622,348
SI International Inc *	14,800	422,836
SiRF Technology Holdings Inc *	10,000	213,500
Solera Holdings Inc *	20,450	367,896
Sonus Networks Inc *	68,600	418,460
SunPower Corp ‘A’ *	7,700	637,714
Synaptics Inc *	12,000	573,120
Synchronoss Technologies Inc *	14,600	614,076
Tessera Technologies Inc *	15,000	562,500
TIBCO Software Inc *	42,250	312,228
VeriFone Holdings Inc *	15,500	687,115
		11,838,401
Utilities - 3.85%
Dobson Communications Corp ‘A’ *	40,050	512,240
ITC Holdings Corp	13,550	671,403

See Notes to Financial Statements A-5 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL SMALL-CAP GROWTH FUND
Schedule of Investments (Continued)
September 30, 2007 (Unaudited)

	Shares		Value
NeuStar Inc ‘A’ *		15,900	$	545,211
Time Warner Telecom Inc ‘A’ *		11,650		255,951
				1,984,805
Total Common Stocks (Cost $47,365,382)				50,583,428
TOTAL INVESTMENTS - 98.21% (Cost $47,365,382)				50,583,428
OTHER ASSETS & LIABILITIES, NET - 1.79%				923,137
NET ASSETS - 100.00%			$	51,506,565

Note to Schedule of Investments

(a) As of September 30, 2007, the Fund was diversified as a percentage of net assets as follows:

Technology	22.98	%
Consumer Discretionary	18.22	%
Health Care	17.92	%
Financial Services	10.67	%
Materials & Processing	8.10	%
Producer Durables	7.76	%
Energy	5.13	%
Utilities	3.85	%
Autos & Transportation	1.68	%
Consumer Staples	1.30	%
Integrated Oils	0.60	%
	98.21	%
Other Assets & Liabilities, Net	1.79	%
	100.00	%

See Notes to Financial Statements A-6 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS

PL INTERNATIONAL VALUE FUND

Schedule of Investments

September 30, 2007 (Unaudited)

	Shares		Value
RIGHTS - 0.15%
Fortis Rights Exp. 10/09/07 *		32,900	$	174,518
Total Rights (Cost $192,735)				174,518
COMMON STOCKS - 96.64%
Australia - 4.73%
Australia & New Zealand Banking Group Ltd +		34,100		896,234
BHP Billiton Ltd +		29,300		1,144,114
Macquarie Airports Ltd +		206,598		795,026
National Australia Bank Ltd +		25,322		889,506
QBE Insurance Group Ltd +		29,822		891,174
Zinifex Ltd +		51,000		800,054
				5,416,108
Austria - 1.25%
OMV AG +		6,846		457,796
voestalpine AG +		11,300		976,995
				1,434,791
Belgium - 1.03%
Fortis +		32,900		970,025
KBC Groep NV +		1,527		209,815
				1,179,840
Bermuda - 0.35%
Orient Overseas International Ltd +		42,000		398,104
Canada - 3.74%
Bombardier Inc ‘B’ *		62,200		369,579
Canadian Imperial Bank of Commerce		7,300		729,229
Fairfax Financial Holdings Ltd		1,200		292,589
Gerdau Ameristeel Corp		45,200		535,774
HudBay Minerals Inc *		9,300		240,763
Husky Energy Inc		8,000		333,384
ING Canada Inc		6,100		273,769
Methanex Corp		9,600		241,580
Nexen Inc		28		855
Onex Corp		5,400		198,432
Royal Bank of Canada		8,431		466,623
Teck Cominco Ltd ‘B’		12,600		598,172
				4,280,749
Denmark - 0.79%
Carlsberg AS ‘B’ +		6,650		907,751
Finland - 1.54%
Nokia OYJ +		22,600		857,521
Stora Enso OYJ ‘R’ +		46,500		902,921
				1,760,442
France - 10.50%
Air France-KLM +		8,400		308,576
BNP Paribas +		14,408		1,576,745
Compagnie Generale des Etablissements Michelin ‘B’ +		7,725		1,041,631
Credit Agricole SA +		27,312		1,045,346
France Telecom SA +		28,400		947,976
Lagardere SCA +		11,900		1,013,600

Renault SA +	10,694	1,551,715
Sanofi-Aventis +	17,301	1,466,221
Societe Generale +	8,239	1,386,289
Total SA +	20,756	1,681,920
		12,020,019
Germany - 11.62%
Allianz SE +	8,410	1,958,951
BASF AG +	12,400	1,713,876
DaimlerChrysler AG +	5,000	500,733
Deutsche Bank AG +	10,700	1,374,858
Deutsche Lufthansa AG +	33,900	973,487
Deutsche Telekom AG +	52,300	1,026,934
E.ON AG +	9,832	1,815,186
Epcos AG +	11,573	226,802
Muenchener Rueckversicherungs AG +	9,061	1,739,349
RWE AG +	10,583	1,329,678
Suedzucker AG +	12,900	259,166
TUI AG * +	14,280	383,260
		13,302,280
Greece - 0.44%
Public Power Corp SA +	12,800	506,812
Hong Kong - 0.22%
Sino Land Co Ltd +	103,300	256,216
Italy - 2.52%
Banco Popolare SCARL *	7,600	170,252
Buzzi Unicem SPA +	12,000	311,427
ENI SPA +	46,189	1,705,649
Fondiaria-Sai SPA +	8,700	408,724
Fondiaria-Sai SPA RNC +	4,600	149,733
Italcementi SPA +	6,500	143,905
		2,889,690
Japan - 21.51%
Aisin Seiki Co Ltd +	18,400	731,654
Alps Electric Co Ltd +	27,500	329,521
Canon Inc +	7,800	423,270
Cosmo Oil Co Ltd +	26,000	123,088
Dainippon Ink & Chemicals Inc +	124,000	546,336
EDION Corp +	20,400	226,574
Fujitsu Ltd +	140,000	985,029
Honda Motor Co Ltd +	26,700	889,139
Isuzu Motors Ltd +	125,000	711,146
Itochu Corp +	49,000	591,547
JFE Holdings Inc +	18,800	1,325,887
Kyushu Electric Power Co Inc +	28,400	750,225
Mitsubishi Chemical Holdings Corp +	50,500	438,555
Mitsubishi Corp +	25,300	796,824
Mitsubishi UFJ Financial Group Inc	169	1,486,005
Mitsui & Co Ltd +	40,000	967,355
Mitsui Chemicals Inc +	42,000	414,565
Mitsui OSK Lines Ltd +	69,000	1,110,259
Namco Bandai Holdings Inc +	33,100	479,459
Nippon Mining Holdings Inc +	51,000	508,499
Nippon Telegraph & Telephone Corp +	243	1,129,050
Nippon Yusen Kabushiki Kaisha+	76,000	738,052
Nissan Motor Co Ltd +	111,000	1,107,470
Oki Electric Industry Co Ltd * +	64,000	109,949
ORIX Corp +	4,680	1,060,618
Rengo Co Ltd +	19,000	127,915
Sharp Corp +	57,000	1,030,189
Sony Corp +	6,600	317,265
Sumitomo Mitsui Financial Group Inc +	168	1,303,379

See Notes to Financial Statements A-7 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS

PL INTERNATIONAL VALUE FUND

Schedule of Investments (Continued)

September 30, 2007 (Unaudited)

	Shares		Value
The Tokyo Electric Power Co Inc +		43,200	$	1,088,428
Toshiba Corp +		138,000		1,282,361
Tosoh Corp +		43,000		277,604
Toyota Motor Corp +		20,800		1,216,849
				24,624,066
Luxembourg - 1.43%
ArcelorMittal +		20,800		1,639,639
Netherlands - 2.99%
ING Groep NV CVA +		41,021		1,822,946
Koninklijke Ahold NV * +		74,500		1,124,285
Wolters Kluwer NV +		16,048		475,357
				3,422,588
Singapore - 0.33%
Neptune Orient Lines Ltd +		107,000		380,943
Spain - 1.78%
Banco Santander SA +		15,900		309,664
Repsol YPF SA +		26,529		944,007
Telefonica SA +		28,200		787,855
				2,041,526
Sweden - 1.72%
Nordea Bank AB +		32,900		571,170
Svenska Cellulosa AB ‘B’ +		48,200		896,623
Tele2 AB ‘B’ +		23,400		505,073
				1,972,866
Switzerland - 2.44%
Credit Suisse Group +		21,279		1,414,287
Novartis AG +		24,997		1,375,168
				2,789,455
United Kingdom - 25.71%
Antofagasta PLC +		47,900		747,242
Arriva PLC +		15,500		244,399
Associated British Foods PLC +		40,600		665,191
AstraZeneca PLC +		29,822		1,492,620
Aviva PLC +		64,437		966,148
BAE Systems PLC +		122,626		1,232,274
Barclays PLC +		132,283		1,608,075
BP PLC +		105,698		1,222,643
British Airways PLC * +		83,800		655,461
British American Tobacco PLC +		24,700		884,007
British Energy Group PLC +		27,500		298,761
BT Group PLC +		50,600		317,481
Drax Group PLC +		32,600		405,062
DS Smith PLC +		57,900		220,521
Friends Provident PLC +		143,939		505,117
GlaxoSmithKline PLC +		61,000		1,617,906
Greene King PLC +		23,320		420,817
HBOS PLC +		89,031		1,666,081
Home Retail Group PLC +		77,900		591,795
HSBC Holdings PLC (LI) +		14,600		269,625
ITV PLC +		234,540		492,356
Kazakhmys PLC +		9,000		257,612
Lloyds TSB Group PLC +		97,200		1,075,342
Marston’s PLC +		53,696		372,158
Mitchells & Butlers PLC +		32,500		407,194
Pearson PLC +		48,400		748,947
Prudential PLC +		16,645		255,109
Rio Tinto PLC +		2,998		258,028
Royal Dutch Shell PLC ‘A’ (XAMS) +		73,435		3,025,409

Taylor Wimpey PLC +	68,000		383,931
The Royal Bank of Scotland Group PLC +	179,746		1,939,428
Trinity Mirror PLC +	40,800		343,213
Vodafone Group PLC +	697,771		2,515,101
Xstrata PLC +	20,030		1,330,176
			29,435,230
Total Common Stocks (Cost $94,215,987)			110,659,115
TOTAL INVESTMENTS - 96.79% (Cost $94,408,722)			110,833,633
OTHER ASSETS & LIABILITIES, NET - 3.21%			3,674,480
NET ASSETS - 100.00%		$	114,508,113

Notes to Schedule of Investments

(a) As of September 30, 2007, the Fund was diversified as a percentage of net assets as follows:

Financial Services	28.74	%
Materials & Processing	12.55	%
Utilities	11.37	%
Autos & Transportation	10.97	%
Integrated Oils	6.80	%
Consumer Discretionary	6.44	%
Health Care	5.19	%
Multi-Industry	4.42	%
Consumer Staples	4.05	%
Technology	2.56	%
Energy	2.29	%
Producer Durables	1.41	%
	96.79	%
Other Assets & Liabilities, Net	3.21	%
	100.00	%

(b) As of September 30, 2007, the Fund was diversified by geographical region as a percentage of net assets as follows:

United Kingdom	25.71	%
Japan	21.51	%
Germany	11.62	%
France	10.50	%
Australia	4.73	%
Canada	3.74	%
Netherlands	2.99	%
Italy	2.52	%
Switzerland	2.44	%
Spain	1.78	%
Sweden	1.72	%
Finland	1.54	%
Luxembourg	1.43	%
Austria	1.25	%
Belgium	1.18	%
Denmark	0.79	%
Greece	0.44	%
Bermuda	0.35	%
Singapore	0.33	%
Hong Kong	0.22	%
	96.79	%
Other Assets & Liabilities, Net	3.21	%
	100.00	%

See Notes to Financial Statements A-8 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS

PL INTERNATIONAL VALUE FUND

Schedule of Investments (Continued)

September 30, 2007 (Unaudited)

(c) Securities with a total aggregate market value of $104,722,109, or 91.45% of the net assets, were valued under the fair value procedures established by the Funds’ Board of Trustees.

(d) The amount of $79,300 in cash was segregated with the broker(s)/custodian to cover margin requirements for the following open futures contracts as of September 30, 2007:

Long Futures Outstanding	Number of Contracts		Notional Amount		Unrealized Appreciation
Dow Jones EURO STOXX 50 (12/07)	27	EUR	1,138,590	$	74,691

See Notes to Financial Statements A-9 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL LARGE-CAP VALUE FUND
Schedule of Investments
September 30, 2007 (Unaudited)

	Shares		Value
COMMON STOCKS - 95.28%
Consumer Discretionary - 17.50%
EchoStar Communications Corp ‘A’ *		22,100	$	1,034,501
Kimberly-Clark Corp		17,900		1,257,654
Liberty Media Corp - Capital ‘A’ *		9,250		1,154,677
Liberty Media Corp - Interactive ‘A’ *		44,586		856,497
McDonald’s Corp		31,300		1,704,911
News Corp ‘B’		87,600		2,048,964
Target Corp		13,800		877,266
The Home Depot Inc		24,900		807,756
Time Warner Inc		82,600		1,516,536
Wal-Mart Stores Inc		21,700		947,205
				12,205,967
Consumer Staples - 4.05%
Altria Group Inc		29,400		2,044,182
Kraft Foods Inc ‘A’		22,631		780,996
				2,825,178
Energy - 1.94%
GlobalSantaFe Corp (Cayman)		17,800		1,353,156
Financial Services - 28.14%
Aflac Inc		28,000		1,597,120
American Express Co		31,300		1,858,281
American International Group Inc		10,264		694,360
Bank of America Corp		27,800		1,397,506
Capital One Financial Corp		19,300		1,282,099
Freddie Mac		23,255		1,372,278
JPMorgan Chase & Co		35,500		1,626,610
Loews Corp		37,500		1,813,125
Marsh & McLennan Cos Inc		34,711		885,131
Merrill Lynch & Co Inc		14,740		1,050,667
The Bank of New York Mellon Corp		18,752		827,713
The Chubb Corp		21,580		1,157,551
The Goldman Sachs Group Inc		3,600		780,264
The Travelers Cos Inc		21,800		1,097,412
Wachovia Corp		19,561		980,984
Wells Fargo & Co		33,900		1,207,518
				19,628,619
Health Care - 6.65%
Abbott Laboratories		19,600		1,050,952
Novartis AG ADR (Switzerland)		19,300		1,060,728
UnitedHealth Group Inc		23,700		1,147,791
WellPoint Inc *		17,500		1,381,100
				4,640,571
Integrated Oils - 5.45%
Royal Dutch Shell PLC ‘A’ ADR (United Kingdom)		9,900		813,582
Suncor Energy Inc (Canada)		7,245		686,898
Total SA ADR (France)		28,400		2,301,252
				3,801,732
Materials & Processing - 4.01%
Air Products & Chemicals Inc		9,900		967,824
Avery Dennison Corp		14,100		803,982
E.I. du Pont de Nemours & Co		20,700		1,025,892
				2,797,698
Multi-Industry - 6.09%
General Electric Co		61,500		2,546,100
Textron Inc		27,300		1,698,333
				4,244,433

Producer Durables - 4.73%
Raytheon Co	15,300		976,446
The Boeing Co	8,500		892,415
United Technologies Corp	17,800		1,432,544
			3,301,405
Technology - 6.95%
Comverse Technology Inc *	31,600		625,680
International Business Machines Corp	9,100		1,071,980
L-3 Communications Holdings Inc	7,300		745,622
Microsoft Corp	25,500		751,230
Nokia OYJ ADR (Finland)	43,500		1,649,955
			4,844,467
Utilities - 9.77%
AT&T Inc	49,647		2,100,565
Embarq Corp	23,245		1,292,422
Sempra Energy	24,900		1,447,188
SES FDR + (Luxembourg)	10,700		252,286
Sprint Nextel Corp	90,501		1,719,519
			6,811,980
Total Common Stocks (Cost $54,098,475)			66,455,206
SHORT-TERM INVESTMENT - 4.60%
Money Market Fund - 4.60%
BlackRock Liquidity Funds Institutional TempFund	3,210,700		3,210,700
Total Short-Term Investment (Cost $3,210,700)			3,210,700
TOTAL INVESTMENTS - 99.88% (Cost $57,309,175)			69,665,906
OTHER ASSETS & LIABILITIES, NET - 0.12%			84,928
NET ASSETS - 100.00%		$	69,750,834

Notes to Schedule of Investments
(a)	As of September 30, 2007, the Fund was diversified as a percentage of net assets as follows:

Financial Services	28.14	%
Consumer Discretionary	17.50	%
Utilities	9.77	%
Technology	6.95	%
Health Care	6.65	%
Multi-Industry	6.09	%
Integrated Oils	5.45	%
Producer Durables	4.73	%
Short-Term Investments	4.60	%
Consumer Staples	4.05	%
Materials & Processing	4.01	%
Energy	1.94	%
	99.88	%
Other Assets & Liabilities, Net	0.12	%
	100.00	%

(b) Securities with a total aggregate market value of $252,286, or 0.36% of the net assets, were valued under the fair value procedures established by the Funds’ Board of Trustees.

See Notes to Financial Statements A-10 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL SHORT DURATION BOND FUND
Schedule of Investments
September 30, 2007 (Unaudited)

	Principal Amount		Value
CORPORATE BONDS & NOTES - 9.73%
Autos & Transportation - 0.19%
GATX Financial Corp 5.125% due 04/15/10	$	150,000	$	151,244
Consumer Discretionary - 0.20%
Time Warner Inc 6.750% due 04/15/11		150,000		156,031
Financial Services - 7.78%
American General Finance Corp 4.875% due 05/15/10		250,000		248,555
ANZ Capital Trust Inc 4.484% due 12/15/53 ~		500,000		487,000
Greater Bay Bancorp 5.125% due 04/15/10		100,000		99,800
ING Capital Funding Trust III 8.439% due 12/29/49 §		250,000		270,640
Kreditanstalt Fuer Wiederaufbau (Germany) 4.500% due 09/21/09		3,400,000		3,398,997
Mizuho JGB Investment LLC 9.870% due 06/30/08 ~ §		300,000		307,950
Morgan Stanley 5.050% due 01/21/11		250,000		247,280
PNC Funding Corp 6.500% due 05/01/08		300,000		302,443
Popular North America Inc 5.200% due 12/12/07		200,000		199,815
The Royal Bank of Scotland Group PLC (United Kingdom) 9.118% due 03/31/10		100,000		107,119
Wachovia Capital Trust III 5.800% due 09/15/99 §		100,000		99,406
Waddell & Reed Financial Inc 5.600% due 01/15/11		150,000		151,876
Washington Mutual Inc 8.250% due 04/01/10		200,000		211,108
				6,131,989
Producer Durables - 0.32%
John Deere Capital Corp 5.400% due 04/07/10		250,000		253,281
Utilities - 1.24%
Comcast Corp 5.850% due 01/15/10		250,000		254,116
Cox Communications Inc 4.625% due 01/15/10		150,000		148,304
Deutsche Telekom International Finance BV (Netherlands) 8.000% due 06/15/10		200,000		214,366
GTE Corp 7.510% due 04/01/09		250,000		258,255
Time Warner Cable Inc 5.400% due 07/02/12 ~		100,000		98,872
				973,913
Total Corporate Bonds & Notes (Cost $7,635,108)				7,666,458

ASSET-BACKED SECURITIES - 1.27%
Chase Issuance Trust 4.960% due 09/17/12 ”	1,000,000	999,902
Total Asset-Backed Securities (Cost $999,902)		999,902
U.S. GOVERNMENT AGENCY ISSUES - 46.50%
Fannie Mae
4.000% due 01/28/08 §	1,300,000	1,296,016
4.750% due 02/01/08	1,300,000	1,299,045
5.125% due 09/02/08 ‡	10,000,000	10,045,920
6.625% due 09/15/09	1,000,000	1,041,818
Federal Farm Credit Bank
3.125% due 02/01/08	1,000,000	994,239
Federal Home Loan Bank
3.500% due 06/23/10	1,900,000	1,854,702
4.000% due 12/03/07 §	1,000,000	997,257
4.650% due 08/22/08	3,000,000	2,997,474
5.125% due 12/29/08	8,000,000	8,065,176
5.125% due 09/10/10	1,000,000	1,018,859
5.250% due 01/16/09	5,000,000	5,043,935
Freddie Mac
4.200% due 12/28/07	1,000,000	998,213
4.480% due 09/19/08	1,000,000	998,944
Total U.S. Government Agency Issues (Cost $36,528,820)		36,651,598
U.S. TREASURY OBLIGATIONS - 35.56%
U.S. Treasury Notes - 35.56%
4.375% due 01/31/08	500,000	500,703
4.500% due 02/15/09	1,000,000	1,007,110
4.500% due 02/15/36	100,000	94,836
4.750% due 02/15/10	200,000	203,469
4.750% due 02/15/37	200,000	197,297
4.875% due 10/31/08	7,200,000	7,265,254
4.875% due 01/31/09	10,500,000	10,623,869
4.875% due 05/15/09	200,000	202,922
4.875% due 08/15/09	7,800,000	7,927,975
Total U.S. Treasury Obligations (Cost $27,687,193)		28,023,435
SHORT-TERM INVESTMENTS - 9.47%
Commercial Paper - 1.75%
Chariot Funding LLC 6.228% due 10/10/07	461,000	460,285
CRC Funding LLC 6.109% due 10/22/07	461,000	459,368
Galleon Capital LLC 5.294% due 11/01/07	461,000	458,908
		1,378,561

See Notes to Financial Statements A-11 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL SHORT DURATION BOND FUND
Schedule of Investments (Continued)
September 30, 2007 (Unaudited)

	Shares		Value
Money Market Funds - 7.72%
BlackRock Liquidity Funds Institutional TempCash		2,534,132	$	2,534,132
BlackRock Liquidity Funds Institutional TempFund		3,551,618		3,551,618
				6,085,750
Total Short-Term Investments (Cost $7,464,311)				7,464,311
TOTAL INVESTMENTS - 102.53% (Cost $80,315,334)				80,805,704
OTHER ASSETS & LIABILITIES, NET - (2.53%)				(1,994,216	)
NET ASSETS - 100.00%			$	78,811,488
Notes to Schedule of Investments

(a) As of September 30, 2007, the Fund was diversified as a percentage of net assets as follows:

U.S. Government Agency Issues	46.50	%
U.S. Treasury Obligations	35.56	%
Corporate Bonds & Notes	9.73	%
Short-Term Investments	9.47	%
Asset-Backed Securities	1.27	%
	102.53	%
Other Assets & Liabilities, Net	(2.53	%)
	100.00	%

(b) Short-term securities reflect either the stated coupon rate or the annualized effective yield on the date of purchase for discounted securities.

(c) Securities with an aggregate market value of $110,505 were segregated with the broker(s)/custodian to cover margin requirements for the following open futures contracts as of September 30, 2007:

Long Futures Outstanding	Number of Contracts		Notional Amount		Net Unrealized Appreciation (Depreciation)
Eurodollar (12/07)		2	$	2,000,000	$	792
Eurodollar (03/08)		4		4,000,000		2,236
Eurodollar (06/08)		4		4,000,000		3,286
Eurodollar (09/08)		4		4,000,000		3,850
Eurodollar (12/08)		2		2,000,000		2,454
Eurodollar (03/09)		2		2,000,000		2,317
Eurodollar (06/09)		2		2,000,000		2,067
U.S. Treasury 2-Year Notes (12/07)		81		16,200,000		69,793
U.S. Treasury 5-Year Notes (12/07)		76		7,600,000		21,886
U.S. Treasury 10- Year Notes (12/07)		13		1,300,000		10,703
Short Futures Outstanding
U.S. Treasury 20-Year Bonds(12/07)		43		4,300,000		(962	)
					$	118,422

See Notes to Financial Statements A-12 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL GROWTH LT FUND
Schedule of Investments
September 30, 2007 (Unaudited)

	Shares		Value
COMMON STOCKS - 99.76%
Autos & Transportation - 2.43%
C.H. Robinson Worldwide Inc		16,180	$	878,412
Canadian National Railway Co (Canada)		11,124		634,068
FedEx Corp		3,920		410,620
				1,923,100
Consumer Discretionary - 18.28%
Avon Products Inc		19,025		714,008
eBay Inc *		11,855		462,582
Electronic Arts Inc *		19,255		1,078,087
Esprit Holdings Ltd + (Bermuda)		46,600		738,383
Google Inc ‘A’ *		1,870		1,060,795
Harrah’s Entertainment Inc		5,955		517,668
Industria de Diseno Textil SA + (Spain)		12,150		821,271
Lamar Advertising Co ‘A’		12,290		601,841
Liberty Global Inc ‘A’ *		6,626		271,798
Liberty Global Inc ‘C’ *		7,036		272,012
Liberty Media Corp - Interactive ‘A’ *		24,810		476,600
Lululemon Athletica Inc *		8,305		349,059
LVMH Moet Hennessy Louis Vuitton SA + (France)		2,250		269,341
Melco PBL Entertainment (Macau) Ltd ADR * (Cayman)		36,840		607,860
News Corp ‘A’		46,240		1,016,818
Nordstrom Inc r		26,730		1,253,370
Publishing & Broadcasting Ltd + (Australia)		49,391		861,698
Sony Corp + (Japan)		11,625		558,820
Staples Inc		35,832		770,030
Station Casinos Inc		4,325		378,351
Yahoo! Inc *		46,340		1,243,766
YAMADA-DENKI Co Ltd + (Japan)		1,300		128,029
				14,452,187
Consumer Staples - 6.27%
Altria Group Inc		6,381		443,671
Reckitt Benckiser PLC + (United Kingdom)		17,112		1,003,194
Tesco PLC + (United Kingdom)		28,132		252,159
The Coca-Cola Co		12,865		739,351
The Procter & Gamble Co		30,105		2,117,586
Whole Foods Market Inc		8,120		397,555
				4,953,516
Energy - 3.92%
Apache Corp r		4,175		376,001
NRG Energy Inc * r		51,660		2,184,701
Valero Energy Corp r		8,020		538,784
				3,099,486
Financial Services - 15.28%
American Express Co		12,655		751,327
American International Group Inc		14,335		969,763
Berkshire Hathaway Inc ‘B’ *		190		750,880
CME Group Inc		1,470		863,404
Fannie Mae		15,125		919,751
Hang Lung Properties Ltd + (Hong Kong)		116,000		517,907
JPMorgan Chase & Co		45,748		2,096,173
Merrill Lynch & Co Inc		6,710		478,289
Moody’s Corp		5,320		268,128
NewAlliance Bancshares Inc r		24,395		358,119
Paychex Inc		11,425		468,425
Sanlam Ltd + (South Africa)		124,634		404,018
SLM Corp		9,610		477,329
T. Rowe Price Group Inc		7,075		394,007
The Blackstone Group LP *		10,070		252,556
The Western Union Co		26,260		550,672

UBS AG (NYSE) (Switzerland)	16,250	865,313
UBS AG (XVTX) + (Switzerland)	12,878	691,905
		12,077,966
Health Care - 14.10%
Alcon Inc (Switzerland)	3,285	472,777
Amylin Pharmaceuticals Inc *	7,025	351,250
Celgene Corp *	16,525	1,178,398
Coventry Health Care Inc *	26,520	1,649,809
CVS Caremark Corp	43,676	1,730,880
Genzyme Corp *	6,800	421,328
Gilead Sciences Inc *	23,160	946,549
Merck & Co Inc	24,500	1,266,405
Pediatrix Medical Group Inc *	6,560	429,155
Roche Holding AG + (Switzerland)	11,878	2,150,774
Takeda Pharmaceutical Co Ltd + (Japan)	7,900	554,034
		11,151,359
Integrated Oils - 3.99%
Electromagnetic GeoServices AS * + (Norway)	12,420	205,868
EnCana Corp (Canada)	4,965	307,085
Exxon Mobil Corp	23,210	2,148,318
Hess Corp	7,475	497,312
		3,158,583
Materials & Processing - 7.48%
Archer-Daniels-Midland Co	18,025	596,267
Ball Corp	11,425	614,094
Monsanto Co	17,320	1,485,017
Precision Castparts Corp	9,385	1,388,792
Shin-Etsu Chemical Co Ltd + (Japan)	5,800	399,037
Syngenta AG + (Switzerland)	6,602	1,428,347
		5,911,554
Multi-Industry - 2.78%
General Electric Co	53,100	2,198,340
Producer Durables - 7.31%
BAE Systems PLC + (United Kingdom)	48,286	485,228
Crown Castle International Corp *	20,995	853,027
Emerson Electric Co	10,440	555,617
KLA-Tencor Corp	13,040	727,371
Lockheed Martin Corp	7,425	805,538
NVR Inc *	330	155,183
The Boeing Co	20,945	2,199,015
		5,780,979
Technology - 15.93%
Adobe Systems Inc *	9,920	433,107
Akamai Technologies Inc *	2,845	81,737
Apple Inc *	10,930	1,678,192
Ceridian Corp *	18,435	640,432
Cisco Systems Inc *	17,315	573,300
Corning Inc	37,900	934,235
EMC Corp *	58,035	1,207,128
Hewlett-Packard Co	21,635	1,077,207
Marvell Technology Group Ltd * (Bermuda)	15,500	253,735
Nokia OYJ ADR (Finland)	14,295	542,209
Oracle Corp *	43,590	943,724
QUALCOMM Inc	26,430	1,116,932
Research In Motion Ltd * (Canada)	7,725	761,299
Samsung Electronics Co Ltd + (South Korea)	550	344,156
Texas Instruments Inc	48,075	1,759,064
VMware Inc ‘A’ *	2,920	248,200
		12,594,657

See Notes to Financial Statements A-13 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL GROWTH LT FUND
Schedule of Investments (Continued)
September 30, 2007 (Unaudited)

	Shares		Value
Utilities - 1.99%
America Movil SAB de CV ‘L’ ADR (Mexico)		13,525	$	865,600
NeuStar Inc ‘A’ *		20,695		709,631
				1,575,231
Total Common Stocks (Cost $63,137,574)				78,876,958

	Principal Amount
SHORT-TERM INVESTMENTS - 2.98%
U.S. Treasury Bills - 0.20%
3.620% due 10/25/07	$	35,000	34,916
3.900% due 10/25/07		73,000	72,810
4.170% due 01/24/08		39,000	38,531
4.600% due 11/23/07		11,000	10,943
			157,200

	Shares
Money Market Funds - 2.78%
BlackRock Liquidity Funds Institutional TempCash		1,097,656		1,097,656
BlackRock Liquidity Funds Institutional TempFund		1,097,656		1,097,656
				2,195,312
Total Short-Term Investments
(Cost $2,352,444)				2,352,512
TOTAL INVESTMENTS - 102.74%
(Cost $65,490,018)				81,229,470
OTHER ASSETS & LIABILITIES, NET - (2.74%)				(2,164,869	)
NET ASSETS - 100.00%			$	79,064,601

Notes to Schedule of Investments

(a) As of September 30, 2007, the Fund was diversified as a percentage of net assets as follows:

Consumer Discretionary	18.28	%
Technology	15.93	%
Financial Services	15.28	%
Health Care	14.10	%
Materials & Processing	7.48	%
Producer Durables	7.31	%
Consumer Staples	6.27	%
Integrated Oils	3.99	%
Energy	3.92	%
Short-Term Investments	2.98	%
Multi-Industry	2.78	%
Autos & Transportation	2.43	%
Utilities	1.99	%
	102.74	%
Other Assets & Liabilities, Net	(2.74	%)
	100.00	%

(b) Short-term securities reflect either the stated coupon rate or the annualized effective yield on the date of purchase for discounted securities.

(c) Securities with a total aggregate market value of $11,814,169, or 14.94% of the net assets, were valued under the fair value procedures established by the Funds’ Board of Trustees.

(d) Forward foreign currency contracts outstanding as of September 30, 2007 were as follows:

Contracts to Buy or to Sell	Currency	Principal Amount Covered by Contracts	Expiration	Net Unrealized Depreciation
Sell	CHF	335,000	11/07	($	10,658	)
Sell	EUR	25,000	10/07		(2,375	)
Sell	EUR	95,000	11/07		(6,838	)
Sell	GBP	165,000	10/07		(6,193	)
Sell	KRW	71,000,000	10/07		(2,403	)
Sell	KRW	6,000,000	02/08		(91	)
				($	28,558	)

(e) Transactions in written options for the period ended September 30, 2007 were as follows:

	Number of Contracts			Premium
Outstanding, March 31, 2007		15		$	2,904
Call Options Written		334			15,739
Put Options Written		217			14,682
Call Options Expired		(326	)		(15,381	)
Put Options Expired		(175	)		(12,252	)
Outstanding, September 30, 2007		65		$	5,692

(f) Premiums received and value of written options outstanding as of September 30, 2007:

Description	Number of Contracts		Premium		Value
Put- CBOE NRG Energy Inc Strike @ $35.00 Exp. 10/20/07 Counterparty: Goldman Sachs		9	$	306	$	68
Put- CBOE Nordstrom Inc Strike @ $40.00 Exp. 10/20/07 Counterparty: Goldman Sachs		9		171		90
Put- CBOE Nordstrom Inc Strike @ $45.00 Exp. 10/20/07 Counterparty: Goldman Sachs		7		714		560
Call- CBOE Apache Corp Strike @ $95.00 Exp. 10/20/07 Counterparty: Goldman Sachs		9		1,053		720
Put- CBOE Newalliance Bancshares Inc Strike @ $12.50 Exp. 11/17/07 Counterparty: Goldman Sachs		8		232		60
Put- CBOE Nordstrom Inc Strike @ $40.00 Exp. 01/19/08 Counterparty: Goldman Sachs		9		1,007		945
Call- CBOE Valero Energy Inc Strike @ $100.00 Exp. 01/16/08 Counterparty: Goldman Sachs		14		2,209		105
			$	5,692	$	2,548

(g) The amount of $59,063 in cash was segregated with the broker(s)/custodian to cover written call and put option contracts as of September 30, 2007.

See Notes to Financial Statements A-14 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL MID-CAP VALUE FUND
Schedule of Investments
September 30, 2007 (Unaudited)

	Shares		Value
COMMON STOCKS - 95.57%
Autos & Transportation - 0.86%
YRC Worldwide Inc *		26,160	$	714,691
Consumer Discretionary - 16.32%
Brinker International Inc		12,300		337,512
Cintas Corp		44,700		1,658,370
Darden Restaurants Inc		35,200		1,473,472
Foot Locker Inc		89,600		1,373,568
Hanesbrands Inc *		6,300		176,778
Idearc Inc		41,150		1,294,991
J.C. Penney Co Inc		14,100		893,517
Liz Claiborne Inc		55,810		1,915,957
Pacific Sunwear of California Inc *		51,630		764,124
R.H. Donnelley Corp *		20,938		1,172,947
Republic Services Inc		28,135		920,296
Royal Caribbean Cruises Ltd (Liberia)		29,370		1,146,311
The Talbots Inc		20,790		374,220
				13,502,063
Consumer Staples - 6.11%
Coca-Cola Enterprises Inc		69,930		1,693,704
Constellation Brands Inc ‘A’ *		46,800		1,133,028
Pilgrim’s Pride Corp		24,330		844,981
Smithfield Foods Inc *		43,900		1,382,850
				5,054,563
Energy - 8.23%
BJ Services Co		45,400		1,205,370
Foundation Coal Holdings Inc		26,200		1,027,040
Massey Energy Co		43,980		959,644
Patterson-UTI Energy Inc		48,200		1,087,874
Pride International Inc *		24,700		902,785
Sunoco Inc		11,020		779,996
The Williams Cos Inc		24,820		845,369
				6,808,078
Financial Services - 19.08%
AmeriCredit Corp *		31,300		550,254
Ameriprise Financial Inc		16,810		1,060,879
Aon Corp		25,900		1,160,579
CBL & Associates Properties Inc REIT		47,110		1,651,205
First Horizon National Corp		26,510		706,757
Hudson City Bancorp Inc		58,350		897,423
Huntington Bancshares Inc		59,800		1,015,404
Lincoln National Corp		27,724		1,828,952
Marsh & McLennan Cos Inc		33,900		864,450
Marshall & Ilsley Corp		25,400		1,111,758
OneBeacon Insurance Group Ltd (Bermuda)		45,100		971,905
PartnerRe Ltd (Bermuda)		16,096		1,271,423
Public Storage REIT		8,600		676,390
RenaissanceRe Holdings Ltd (Bermuda)		17,040		1,114,586
Willis Group Holdings Ltd (Bermuda)		22,100		904,774
				15,786,739
Health Care - 8.37%
Applera Corp-Applied Biosystems Group		33,300		1,153,512
Barr Pharmaceuticals Inc *		30,950		1,761,365
Hospira Inc *		33,000		1,367,850
Omnicare Inc		34,800		1,152,924
Sepracor Inc *		17,270		474,925
Warner Chilcott Ltd ‘A’ (Bermuda) *		57,000		1,012,890
				6,923,466

Materials & Processing - 6.21%
Ball Corp	25,860		1,389,975
Bemis Co Inc	33,800		983,918
Louisiana-Pacific Corp	57,100		968,987
Masco Corp	53,600		1,241,912
USG Corp *	14,900		559,495
			5,144,287
Multi-Industry - 2.88%
Fortune Brands Inc	10,720		873,573
Textron Inc	24,300		1,511,703
			2,385,276
Producer Durables - 10.71%
Centex Corp	19,600		520,772
Covanta Holding Corp *	49,350		1,209,569
D.R. Horton Inc	50,000		640,500
Dover Corp	35,640		1,815,858
Hubbell Inc ‘B’	24,910		1,422,859
Lexmark International Inc ‘A’ *	31,000		1,287,430
Pitney Bowes Inc	43,240		1,963,961
			8,860,949
Technology - 13.13%
Analog Devices Inc	25,400		918,464
Arrow Electronics Inc *	27,470		1,168,024
Flextronics International Ltd (Singapore) *	194,730		2,177,081
Ingram Micro Inc ‘A’ *	84,390		1,654,888
QLogic Corp *	73,300		985,885
Seagate Technology (Cayman)	47,700		1,220,166
Sun Microsystems Inc *	242,740		1,361,771
Sybase Inc *	59,600		1,378,548
			10,864,827
Utilities - 3.67%
Citizens Communications Co	135,640		1,942,365
NeuStar Inc ‘A’ *	31,900		1,093,851
			3,036,216
Total Common Stocks (Cost $77,114,314)			79,081,155
SHORT-TERM INVESTMENTS - 6.79%
Money Market Funds - 6.79%
BlackRock Liquidity Funds Institutional TempCash	1,812,571		1,812,571
BlackRock Liquidity Funds Institutional TempFund	3,810,404		3,810,404
			5,622,975
Total Short-Term Investments (Cost $5,622,975)			5,622,975
TOTAL INVESTMENTS - 102.36% (Cost $82,737,289)			84,704,130
OTHER ASSETS & LIABILITIES, NET - (2.36%)			(1,956,783	)
NET ASSETS - 100.00%		$	82,747,347

See Notes to Financial Statements A-15 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL MID-CAP VALUE FUND
Schedule of Investments
September 30, 2007 (Unaudited)

Note to Schedule of Investments

(a) As of September 30, 2007, the Fund was diversified as a percentage of net assets as follows:

Financial Services	19.08	%
Consumer Discretionary	16.32	%
Technology	13.13	%
Producer Durables	10.71	%
Health Care	8.37	%
Energy	8.23	%
Short-Term Investments	6.79	%
Materials & Processing	6.21	%
Consumer Staples	6.11	%
Utilities	3.67	%
Multi-Industry	2.88	%
Autos & Transportation	0.86	%
	102.36	%
Other Assets & Liabilities, Net	(2.36	%)
	100.00	%

See Notes to Financial Statements A-16 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL LARGE-CAP GROWTH FUND
Schedule of Investments
September 30, 2007 (Unaudited)

	Shares		Value
COMMON STOCKS - 99.08%
Consumer Discretionary - 14.14%
Amazon.com Inc *		11,569	$	1,077,652
Coach Inc *		14,611		690,662
eBay Inc *		21,325		832,102
Google Inc ‘A’ *		2,543		1,442,568
Guess? Inc		8,962		439,407
McDonald’s Corp		12,451		678,206
				5,160,597
Energy - 7.18%
National Oilwell Varco Inc *		4,293		620,339
Schlumberger Ltd (Netherlands)		10,309		1,082,445
Southwestern Energy Co *		8,995		376,441
XTO Energy Inc		8,725		539,554
				2,618,779
Financial Services - 14.95%
American Express Co		9,877		586,397
CME Group Inc		1,410		828,164
Franklin Resources Inc		6,181		788,078
IntercontinentalExchange Inc *		4,367		663,347
Jones Lang LaSalle Inc		2,809		288,653
MasterCard Inc ‘A’		6,064		897,290
Nymex Holdings Inc		3,458		450,162
T. Rowe Price Group Inc		6,477		360,704
The Goldman Sachs Group Inc		2,737		593,217
				5,456,012
Health Care - 14.99%
Celgene Corp *		7,500		534,825
CVS Caremark Corp		21,148		838,095
Gilead Sciences Inc *		12,712		519,539
Merck & Co Inc		16,299		842,495
Schering-Plough Corp		27,899		882,445
St. Jude Medical Inc *		10,960		483,007
Stryker Corp		8,275		568,989
Thermo Fisher Scientific Inc *		13,830		798,268
				5,467,663
Materials & Processing - 10.52%
Freeport-McMoRan Copper & Gold Inc		6,659		698,463
Jacobs Engineering Group Inc *		5,751		434,661
Monsanto Co		11,338		972,120
Precision Castparts Corp		7,322		1,083,510
The Mosaic Co *		12,165		651,071
				3,839,825
Multi-Industry - 3.54%
Foster Wheeler Ltd * (Bermuda)		4,074		534,835
Textron Inc		12,188		758,215
				1,293,050
Producer Durables - 4.88%
Deere & Co		2,795		414,834
Terex Corp *		5,841		519,966
The Boeing Co		8,038		843,910
				1,778,710
Technology - 27.31%
Adobe Systems Inc *		20,228		883,154
Apple Inc *		10,308		1,582,690
Autodesk Inc *		9,217		460,573
Cisco Systems Inc *		43,644		1,445,053

Dell Inc *	30,015		828,414
EMC Corp *	42,015		873,912
Hewlett-Packard Co	20,790		1,035,134
Intel Corp	33,171		857,802
Juniper Networks Inc *	16,499		604,028
NVIDIA Corp *	15,584		564,764
Oracle Corp *	34,260		741,729
VMware Inc ‘A’ *	997		84,745
			9,961,998
Utilities - 1.57%
NII Holdings Inc *	6,971		572,668
Total Common Stocks (Cost $30,192,845)			36,149,302
TOTAL INVESTMENTS - 99.08% (Cost $30,192,845)			36,149,302
OTHER ASSETS & LIABILITIES, NET - 0.92%			335,257
NET ASSETS - 100.00%		$	36,484,559

Note to Schedule of Investments

(a) As of September 30, 2007, the Fund was diversified as a percentage of net assets as follows:

Technology	27.31	%
Health Care	14.99	%
Financial Services	14.95	%
Consumer Discretionary	14.14	%
Materials & Processing	10.52	%
Energy	7.18	%
Producer Durables	4.88	%
Multi-Industry	3.54	%
Utilities	1.57	%
	99.08	%
Other Assets & Liabilities, Net	0.92	%
	100.00	%

See Notes to Financial Statements A-17 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL INTERNATIONAL LARGE-CAP FUND
Schedule of Investments
September 30, 2007 (Unaudited)

	Shares		Value
COMMON STOCKS - 97.80%
Australia - 0.42%
QBE Insurance Group Ltd +		13,191	$	394,188
Austria - 1.07%
Erste Bank der Oesterreichischen Sparkassen AG+		13,110		999,249
Bermuda - 0.79%
Li & Fung Ltd +		175,200		740,699
Canada - 1.01%
Canadian National Railway Co		16,520		941,640
Czech Republic - 0.56%
Komercni Banka AS +		2,274		528,126
France - 20.64%
AXA SA +		47,500		2,127,249
Credit Agricole SA +		48,703		1,864,071
Gaz de France SA +		17,630		915,358
L’Air Liquide SA +		11,470		1,533,782
L’Oreal SA +		3,660		479,199
Legrand SA +		31,210		1,048,806
LVMH Moet Hennessy Louis Vuitton SA +		23,720		2,839,452
Pernod-Ricard SA +		8,454		1,838,916
Schneider Electric SA +		19,722		2,490,249
Societe Television Francaise 1 SA +		17,119		460,384
Suez SA +		14,200		834,478
Total SA +		27,530		2,230,837
Vivendi +		15,470		653,699
				19,316,480
Germany - 8.15%
Bayer AG +		30,920		2,458,502
Bayerische Motoren Werke AG+		15,210		979,281
Continental AG +		2,863		395,469
E.ON AG +		10,260		1,894,203
Linde AG +		15,260		1,895,454
				7,622,909
India - 0.47%
Satyam Computer Services Ltd ADR		16,900		437,541
Indonesia - 0.42%
P.T. Bank Central Asia Tbk +		586,500		393,640
Italy - 1.47%
Assicurazioni Generali SPA +		11,428		502,299
Intesa Sanpaulo SPA +		113,305		873,536
				1,375,835
Japan - 17.75%
Aeon Credit Service Co Ltd +		32,300		346,148
Asahi Glass Co Ltd +		81,000		1,085,377
Bridgestone Corp +		34,300		755,067
Canon Inc +		45,650		2,477,215
FANUC Ltd +		8,200		832,452

Hirose Electric Co Ltd +	4,200	509,044
Inpex Holdings Inc +	99	1,013,005
Kao Corp +	96,000	2,861,510
Nintendo Co Ltd +	1,200	619,565
Nomura Holdings Inc +	76,300	1,269,334
OMRON Corp +	22,800	600,673
Ricoh Co Ltd +	56,000	1,178,575
The Shizuoka Bank Ltd +	51,000	493,652
Tokyo Gas Co Ltd +	119,640	555,312
Toyota Motor Corp +	34,300	2,006,631
		16,603,560
Netherlands - 2.82%
Heineken NV +	16,630	1,090,899
TNT NV +	36,920	1,546,693
		2,637,592
Singapore - 1.41%
Singapore Telecommunications Ltd +	488,380	1,319,310
South Korea - 1.51%
Samsung Electronics Co Ltd +	2,262	1,415,421
Spain - 0.91%
Banco Bilbao Vizcaya Argentaria SA +	36,340	852,358
Sweden - 0.69%
Telefonaktiebolaget LM Ericsson ‘B’ +	161,240	641,900
Switzerland - 16.23%
Actelion Ltd * +	8,702	481,542
Givaudan SA +	1,640	1,512,892
Julius Baer Holding AG +	17,958	1,340,653
Nestle SA +	9,747	4,369,488
Roche Holding AG +	18,570	3,362,509
Swiss Reinsurance Co +	19,315	1,717,661
UBS AG (XVTX) +	44,724	2,402,916
		15,187,661
Taiwan - 0.72%
Taiwan Semiconductor Manufacturing Co Ltd ADR	66,690	674,903
United Kingdom - 20.05%
BG Group PLC +	24,700	426,723
BHP Billiton PLC +	21,280	761,275
Diageo PLC +	90,920	1,993,540
GlaxoSmithKline PLC +	96,160	2,550,456
HSBC Holdings PLC (LI) +	67,610	1,248,587
Ladbrokes PLC +	112,697	994,159
NEXT PLC +	15,770	632,223
Reckitt Benckiser PLC +	47,914	2,808,967
Royal Dutch Shell PLC ‘A’ (LI) +	42,010	1,727,215
Smiths Group PLC +	64,710	1,415,257
Tesco PLC +	101,537	910,117
William Hill PLC +	118,080	1,551,586
WPP Group PLC +	129,050	1,741,227
		18,761,332

See Notes to Financial Statements A-18 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL INTERNATIONAL LARGE-CAP FUND
Schedule of Investments (Continued)
September 30, 2007 (Unaudited)

	Shares		Value
United States - 0.71%
Synthes Inc +		5,940	$	664,701
Total Common Stocks (Cost $72,898,587)				91,509,045

	Principal Amount
SHORT-TERM INVESTMENTS - 2.04%
Commercial Paper - 2.03%
American Express Credit Corp 5.200% due 10/01/07	$	1,898,000	1,898,000

	Shares
Money Market Fund - 0.01%
BlackRock Liquidity Funds Institutional TempCash		11,053		11,053
Total Short-Term Investments (Cost $1,909,053)				1,909,053
TOTAL INVESTMENTS - 99.84% (Cost $74,807,640)				93,418,098
OTHER ASSETS & LIABILITIES, NET - 0.16%				152,314
NET ASSETS - 100.00%			$	93,570,412

Notes to Schedule of Investments

(a) As of September 30, 2007, the Fund was diversified as a percentage of net assets as follows:

Financial Services	18.54	%
Consumer Discretionary	14.51	%
Consumer Staples	13.91	%
Health Care	10.17	%
Technology	8.48	%
Materials & Processing	7.26	%
Autos & Transportation	7.09	%
Utilities	5.89	%
Integrated Oils	5.77	%
Producer Durables	4.67	%
Short-Term Investments	2.04	%
Multi-Industry	1.51	%
	99.84	%
Other Assets & Liabilities, Net	0.16	%
	100.00	%

(b) As of September 30, 2007, the Fund was diversified by geographical region as a percentage of net assets as follows:

France	20.64	%
United Kingdom	20.05	%
Japan	17.75	%
Switzerland	16.23	%
Germany	8.15	%
Netherlands	2.82	%
United States	2.75	%
South Korea	1.51	%
Italy	1.47	%
Singapore	1.41	%
Austria	1.07	%
Canada	1.01	%
Spain	0.91	%
Bermuda	0.79	%
Taiwan	0.72	%
Sweden	0.69	%
Czech Republic	0.56	%
India	0.47	%
Australia	0.42	%
Indonesia	0.42	%
	99.84	%
Other Assets & Liabilities, Net	0.16	%
	100.00	%

(c) Short-term securities reflect either the stated coupon rate or the annualized effective yield on the date of purchase for discounted securities.

(d) Securities with a total aggregate market value of $89,454,961, or 95.60% of the net assets, were valued under the fair value procedures established by the Funds’ Board of Trustees.

See Notes to Financial Statements A-19 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS

PL SMALL-CAP VALUE FUND

Schedule of Investments

September 30, 2007 (Unaudited)

	Shares		Value
COMMON STOCKS - 92.65%
Autos & Transportation - 9.21%
Arkansas Best Corp		4,400	$	143,704
ArvinMeritor Inc		8,800		148,016
Frontline Ltd (Bermuda)		3,000		144,840
Genco Shipping & Trading Ltd		2,300		150,719
General Maritime Corp		3,700		103,267
SkyWest Inc		5,600		140,952
Thor Industries Inc		3,600		161,964
Tidewater Inc		2,000		125,680
Tsakos Energy Navigation Ltd (Bermuda)		2,000		140,820
Werner Enterprises Inc		8,700		149,205
				1,409,167
Consumer Discretionary - 6.81%
Asbury Automotive Group Inc		7,700		152,537
Belo Corp ‘A’		5,700		98,952
Brown Shoe Co Inc		1,300		25,220
CKE Restaurants Inc		9,200		149,132
Ethan Allen Interiors Inc		4,500		147,105
Kellwood Co		4,700		80,135
Kelly Services Inc ‘A’		7,554		149,645
The Cato Corp ‘A’		4,100		83,804
World Fuel Services Corp		3,800		155,078
				1,041,608
Consumer Staples - 5.51%
Pilgrim’s Pride Corp		4,400		152,812
Ruddick Corp		3,500		117,390
Sensient Technologies Corp		5,300		153,011
The J.M. Smucker Co		2,400		128,208
Universal Corp		2,900		141,955
Weis Markets Inc		3,500		149,415
				842,791
Energy - 7.84%
Berry Petroleum Co ‘A’		3,900		154,401
Cabot Oil & Gas Corp		4,000		140,640
Cimarex Energy Co		3,600		134,100
Holly Corp		2,100		125,643
Lufkin Industries Inc		2,600		143,052
Penn Virginia Corp		3,400		149,532
St. Mary Land & Exploration Co		4,300		153,381
Western Refining Inc		4,900		198,842
				1,199,591
Financial Services - 20.87%
Advance America Cash Advance Centers Inc		14,100		150,447
AMCORE Financial Inc		2,600		64,792
American Equity Investment Life Holding Co		14,500		154,425
BancorpSouth Inc		6,000		145,800
Bank of Hawaii Corp		2,800		147,980
CBL & Associates Properties Inc REIT		4,200		147,210
Cullen/Frost Bankers Inc		3,000		150,360
Delphi Financial Group Inc ‘A’		3,700		149,554
Equity One Inc REIT		5,200		141,440
First Industrial Realty Trust Inc REIT		3,900		151,593
Fulton Financial Corp		10,200		146,676
Healthcare Realty Trust Inc REIT		3,700		98,642
Hilb Rogal & Hobbs Co		2,000		86,660
HRPT Properties Trust REIT		14,500		143,405
Infinity Property & Casualty Corp		3,500		140,770
Nationwide Health Properties Inc REIT		4,700		141,611
Old National Bancorp		8,600		142,502
Potlatch Corp REIT		3,300		148,599
Provident Bankshares Corp		4,700		147,251

RLI Corp	2,600	147,472
Susquehanna Bancshares Inc	7,200	144,720
Washington Federal Inc	5,700	149,682
Whitney Holding Corp	5,700	150,366
		3,191,957
Health Care - 2.69%
Invacare Corp	4,100	95,858
Landauer Inc	400	20,384
Owens & Minor Inc	3,800	144,742
West Pharmaceutical Services Inc	3,600	149,976
		410,960
Materials & Processing - 19.67%
Acuity Brands Inc	3,000	151,440
Agnico-Eagle Mines Ltd (Canada)	2,800	139,440
Albany International Corp ‘A’	3,900	146,211
Barnes Group Inc	4,300	137,256
Cleveland-Cliffs Inc	1,800	158,346
Commercial Metals Co	4,700	148,755
Corn Products International Inc	3,000	137,610
Ennis Inc	6,700	147,668
Harsco Corp	2,400	142,248
IAMGOLD Corp (Canada)	17,800	154,326
Lennox International Inc	4,200	141,960
Methanex Corp (Canada)	6,200	157,480
Mueller Industries Inc	4,000	144,560
Quanex Corp	3,300	155,034
Royal Gold Inc	4,300	140,825
RPM International Inc	6,300	150,885
Simpson Manufacturing Co Inc	4,600	146,510
The Lubrizol Corp	2,100	136,626
Universal Forest Products Inc	2,500	74,750
WD-40 Co	4,300	146,802
Westlake Chemical Corp	5,900	149,447
		3,008,179
Multi-Industry - 1.74%
Lancaster Colony Corp	3,900	148,863
Teleflex Inc	1,500	116,880
		265,743
Producer Durables - 7.36%
Applied Industrial Technologies Inc	4,900	151,067
Briggs & Stratton Corp	2,300	57,914
Crane Co	3,000	143,910
Curtiss-Wright Corp	1,100	52,250
Kennametal Inc	1,600	134,368
Lincoln Electric Holdings Inc	1,900	147,459
Regal-Beloit Corp	3,000	143,670
Technitrol Inc	5,400	145,530
Tektronix Inc	5,400	149,796
		1,125,964
Technology - 1.51%
DRS Technologies Inc	2,900	159,848
Park Electrochemical Corp	2,100	70,518
		230,366
Utilities - 9.44%
Atmos Energy Corp	5,200	147,264
Cleco Corp	5,700	144,039
Energen Corp	2,400	137,088
National Fuel Gas Co	3,000	140,430
Southwest Gas Corp	5,200	147,108
UGI Corp	5,200	135,096
USA Mobility Inc *	8,600	145,082

See Notes to Financial Statements A-20 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS

PL SMALL-CAP VALUE FUND

Schedule of Investments (Continued)

September 30, 2007 (Unaudited)

	Shares		Value
Vectren Corp		5,600	$	152,824
Westar Energy Inc		5,900		144,904
WGL Holdings Inc		4,400		149,116
				1,442,951
Total Common Stocks (Cost $14,372,089)				14,169,277
SHORT-TERM INVESTMENTS - 9.67%
Money Market Funds - 9.67%
BlackRock Liquidity Funds Institutional TempCash		739,349		739,349
BlackRock Liquidity Funds Institutional TempFund		739,349		739,349
				1,478,698
Total Short-Term Investments (Cost $1,478,698)				1,478,698
TOTAL INVESTMENTS - 102.32% (Cost $15,850,787)				15,647,975
OTHER ASSETS & LIABILITIES, NET - (2.32%)				(355,145	)
NET ASSETS - 100.00%			$	15,292,830

Note to Schedule of Investments

(a) As of September 30, 2007, the Fund was diversified as a percentage of net assets as follows:

Financial Services	20.87	%
Materials & Processing	19.67	%
Short-Term Investments	9.67	%
Utilities	9.44	%
Autos & Transportation	9.21	%
Energy	7.84	%
Producer Durables	7.36	%
Consumer Discretionary	6.81	%
Consumer Staples	5.51	%
Health Care	2.69	%
Multi-Industry	1.74	%
Technology	1.51	%
	102.32	%
Other Assets & Liabilities, Net	(2.32	%)
	100.00	%

See Notes to Financial Statements A-21 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL MAIN STREET^® CORE FUND
Schedule of Investments
September 30, 2007 (Unaudited)

	Shares		Value
COMMON STOCKS - 99.26%
Autos & Transportation - 0.24%
AMR Corp *		1,800	$	40,122
Continental Airlines Inc ‘B’ *		1,200		39,636
General Motors Corp		400		14,680
Laidlaw International Inc		500		17,610
Lear Corp *		1,000		32,100
Northwest Airlines Corp *		400		7,120
Overseas Shipholding Group Inc		200		15,366
The Goodyear Tire & Rubber Co *		800		24,328
UAL Corp *		500		23,265
United Parcel Service Inc ‘B’		200		15,020
US Airways Group Inc *		1,200		31,500
				260,747
Consumer Discretionary - 8.91%
Accenture Ltd ‘A’ (Bermuda)		14,150		569,537
Activision Inc *		1,200		25,908
Apollo Group Inc ‘A’ *		500		30,075
AutoNation Inc *		900		15,948
AutoZone Inc *		400		46,456
Big Lots Inc *		1,300		38,792
CBS Corp ‘B’		12,000		378,000
Chico’s FAS Inc *		900		12,645
Chipotle Mexican Grill Inc ‘B’ *		355		37,985
ChoicePoint Inc *		600		22,752
Clear Channel Communications Inc		15,530		581,443
Convergys Corp *		1,800		31,248
Costco Wholesale Corp		4,870		298,872
Dollar Tree Stores Inc *		1,000		40,540
eBay Inc *		8,200		319,964
EchoStar Communications Corp ‘A’ *		6,420		300,520
Family Dollar Stores Inc		1,500		39,840
Fossil Inc *		200		7,472
Gannett Co Inc		7,020		306,774
Google Inc ‘A’ *		1,860		1,055,122
Hewitt Associates Inc ‘A’ *		600		21,030
ITT Educational Services Inc *		400		48,676
J.C. Penney Co Inc		200		12,674
Liberty Global Inc ‘A’ *		1,300		53,326
Liberty Media Corp - Capital ‘A’ *		400		49,932
Macy’s Inc		11,560		373,619
Marriott International Inc ‘A’		1,520		66,074
McDonald’s Corp		4,630		252,196
Nike Inc ‘B’		5,060		296,820
Omnicom Group Inc		4,950		238,046
Polo Ralph Lauren Corp		300		23,325
RadioShack Corp		1,800		37,188
Robert Half International Inc		500		14,930
Sears Holdings Corp *		2,950		375,240
Target Corp		100		6,357
Tempur-Pedic International Inc		500		17,875
The Black & Decker Corp		500		41,650
The Home Depot Inc		17,600		570,944
The Men’s Wearhouse Inc		200		10,104
The Stanley Works		100		5,613
The TJX Cos Inc		9,030		262,502
The Toro Co		200		11,766
The Walt Disney Co		32,900		1,131,431
Time Warner Inc		37,000		679,320
VeriSign Inc *		800		26,992
Viacom Inc ‘B’ *		12,900		502,713
Wyndham Worldwide Corp		500		16,380
Yum! Brands Inc		11,010		372,468
				9,679,084

Consumer Staples - 6.39%
Altria Group Inc	34,080	2,369,582
ConAgra Foods Inc	10,460	273,320
General Mills Inc	3,610	209,416
H.J. Heinz Co	6,850	316,470
Kellogg Co	3,500	196,000
NBTY Inc *	400	16,240
PepsiCo Inc	9,270	679,120
Safeway Inc	13,130	434,734
Sara Lee Corp	19,800	330,462
The Coca-Cola Co	12,900	741,363
The Kroger Co	13,210	376,749
The Procter & Gamble Co	13,790	969,989
UST Inc	500	24,800
		6,938,245
Energy - 2.51%
Anadarko Petroleum Corp	4,800	258,000
Dresser-Rand Group Inc *	700	29,897
Global Industries Ltd *	1,100	28,336
Holly Corp	300	17,949
Schlumberger Ltd (Netherlands)	16,200	1,701,000
Tesoro Corp	900	41,418
Valero Energy Corp	9,640	647,615
		2,724,215
Financial Services - 23.78%
ACE Ltd (Cayman)	4,160	251,971
Ambac Financial Group Inc	400	25,164
American International Group Inc	31,100	2,103,915
Ameriprise Financial Inc	8,390	529,493
Aon Corp	4,630	207,470
Assurant Inc	400	21,400
Automatic Data Processing Inc	12,190	559,887
Bank of America Corp	51,884	2,608,209
CIGNA Corp	6,280	334,661
Citigroup Inc	56,150	2,620,520
CNA Financial Corp	2,900	114,028
Discover Financial Services *	3,250	67,600
DST Systems Inc *	500	42,905
Fannie Mae	10,860	660,397
Fidelity National Information Services Inc	600	26,622
Fifth Third Bancorp	4,950	167,706
General Growth Properties Inc REIT	1,400	75,068
Genworth Financial Inc ‘A’	17,200	528,556
HCC Insurance Holdings Inc	300	8,592
Janus Capital Group Inc	1,500	42,420
JPMorgan Chase & Co	46,290	2,121,008
KeyCorp	1,780	57,547
Lehman Brothers Holdings Inc	3,400	209,882
Lincoln National Corp	4,030	265,859
MasterCard Inc ‘A’	2,000	295,940
MBIA Inc	400	24,420
Merrill Lynch & Co Inc	16,740	1,193,227
MetLife Inc	6,300	439,299
MGIC Investment Corp	500	16,155
Morgan Stanley	20,500	1,291,500
Principal Financial Group Inc	7,000	441,630
SAFECO Corp	400	24,488
The Allstate Corp	9,740	557,031
The Bank of New York Mellon Corp	12,365	545,791
The Bear Stearns Cos Inc	3,000	368,430
The Chubb Corp	11,160	598,622
The First American Corp	400	14,648
The Goldman Sachs Group Inc	7,180	1,556,193
The PMI Group Inc	500	16,350
The Travelers Cos Inc	13,030	655,930
U.S. Bancorp	14,180	461,275

See Notes to Financial Statements A-22 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL MAIN STREET CORE FUND
Schedule of Investments (Continued)
September 30, 2007 (Unaudited)

	Shares		Value
Wachovia Corp		30,745	$	1,541,862
Washington Mutual Inc		13,510		477,038
Wells Fargo & Co		34,010		1,211,436
XL Capital Ltd ‘A’ (Cayman)		5,540		438,768
				25,820,913
Health Care - 11.24%
Aetna Inc		12,980		704,425
AmerisourceBergen Corp		600		27,198
Amgen Inc *		9,530		539,112
Baxter International Inc		6,560		369,197
Biogen Idec Inc *		7,020		465,637
Bristol-Myers Squibb Co		7,330		211,251
Cardinal Health Inc		630		39,394
Coventry Health Care Inc *		500		31,105
Covidien Ltd * (Bermuda)		4,065		168,697
Eli Lilly & Co		1,350		76,856
Endo Pharmaceuticals Holdings Inc *		200		6,202
Express Scripts Inc *		6,290		351,108
Forest Laboratories Inc *		8,700		324,423
Genentech Inc *		2,800		218,456
Health Net Inc *		800		43,240
Humana Inc *		800		55,904
Intuitive Surgical Inc *		100		23,000
Invitrogen Corp *		500		40,865
Johnson & Johnson		28,000		1,839,600
Kinetic Concepts Inc *		700		39,396
King Pharmaceuticals Inc *		3,300		38,676
Lincare Holdings Inc *		200		7,330
McKesson Corp		7,540		443,277
Medco Health Solutions Inc *		7,100		641,769
Medtronic Inc		1,300		73,333
Pfizer Inc		76,650		1,872,560
Sepracor Inc *		1,000		27,500
UnitedHealth Group Inc		32,370		1,567,679
WellPoint Inc *		17,605		1,389,387
Wyeth		9,650		429,908
Zimmer Holdings Inc *		1,700		137,683
				12,204,168
Integrated Oils - 10.47%
Chevron Corp		32,700		3,060,066
ConocoPhillips		18,645		1,636,472
Exxon Mobil Corp		60,420		5,592,475
Marathon Oil Corp		7,850		447,607
Occidental Petroleum Corp		9,880		633,110
				11,369,730
Materials & Processing - 2.18%
Acuity Brands Inc		200		10,096
AK Steel Holding Corp *		500		21,975
Ashland Inc		300		18,063
Carpenter Technology Corp		100		13,001
Celanese Corp ‘A’		500		19,490
CF Industries Holdings Inc		300		22,773
International Paper Co		12,250		439,408
Lennox International Inc		300		10,140
Nucor Corp		6,240		371,093
Owens-Illinois Inc *		1,100		45,595
Packaging Corp of America		400		11,628
Southern Copper Corp		3,400		421,022
Steel Dynamics Inc		400		18,680
Terra Industries Inc *		800		25,008
The Dow Chemical Co		12,800		551,168
The Scotts Miracle-Gro Co ‘A’		200		8,550
United States Steel Corp		2,400		254,256

USG Corp *	1,000	37,550
Weyerhaeuser Co	1,000	72,300
		2,371,796
Multi-Industry - 4.37%
3M Co	5,640	527,791
Eaton Corp	4,760	471,430
General Electric Co	58,210	2,409,894
Honeywell International Inc	12,930	768,947
ITT Corp	100	6,793
SPX Corp	500	46,280
Teleflex Inc	300	23,376
Tyco International Ltd (Bermuda)	11,095	491,952
		4,746,463
Producer Durables - 5.03%
Agilent Technologies Inc *	13,620	502,306
Applied Materials Inc	25,970	537,579
Caterpillar Inc	2,810	220,388
Centex Corp	600	15,942
Cummins Inc	900	115,101
KB HOME	700	17,542
KLA-Tencor Corp	600	33,468
Lam Research Corp *	400	21,304
Lennar Corp ‘A’	800	18,120
Lexmark International Inc ‘A’ *	1,000	41,530
Lockheed Martin Corp	5,520	598,865
Northrop Grumman Corp	7,060	550,680
Novellus Systems Inc *	1,400	38,164
NVR Inc *	100	47,025
Raytheon Co	9,320	594,802
Tektronix Inc	500	13,870
Teradyne Inc *	2,700	37,260
The Boeing Co	10,770	1,130,742
Thomas & Betts Corp *	600	35,184
Toll Brothers Inc *	800	15,992
United Technologies Corp	5,170	416,082
Varian Semiconductor Equipment Associates Inc *	400	21,408
Xerox Corp *	25,290	438,529
		5,461,883
Technology - 19.77%
Adobe Systems Inc *	8,190	357,575
Affiliated Computer Services Inc ‘A’ *	700	35,168
Analog Devices Inc	6,900	249,504
ANSYS Inc *	200	6,834
Apple Inc *	8,160	1,252,886
Arrow Electronics Inc *	900	38,268
Atmel Corp *	2,700	13,932
Autodesk Inc *	1,100	54,967
Avnet Inc *	1,100	43,846
BEA Systems Inc *	3,200	44,384
BMC Software Inc *	1,400	43,722
Brocade Communications Systems Inc *	2,200	18,832
CA Inc	2,200	56,584
Cadence Design Systems Inc *	700	15,533
Check Point Software Technologies Ltd (Israel) *	500	12,590
Cisco Systems Inc *	90,410	2,993,475
Citrix Systems Inc *	600	24,192
Cognos Inc (Canada) *	400	16,612
CommScope Inc *	300	15,072
Computer Sciences Corp *	900	50,310
Compuware Corp *	2,600	20,852
Dell Inc *	18,910	521,916
Electronic Data Systems Corp	20,130	439,639
EMC Corp *	32,640	678,912
Foundry Networks Inc *	1,700	30,209
Gartner Inc *	200	4,892

See Notes to Financial Statements A-23 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL MAIN STREET CORE FUND
Schedule of Investments (Continued)
September 30, 2007 (Unaudited)

	Shares		Value
General Dynamics Corp		1,370	$	115,724
Hewlett-Packard Co		46,970		2,338,636
Integrated Device Technology Inc *		1,400		21,672
Intel Corp		25,300		654,258
International Business Machines Corp		23,070		2,717,646
Intersil Corp ‘A’		600		20,058
Intuit Inc *		1,700		51,510
Juniper Networks Inc *		17,870		654,221
L-3 Communications Holdings Inc		2,200		224,708
Linear Technology Corp		1,400		48,986
McAfee Inc *		1,000		34,870
MICROS Systems Inc *		100		6,507
Microsoft Corp		114,620		3,376,705
Motorola Inc		28,020		519,211
National Semiconductor Corp		1,800		48,816
NCR Corp *		1,000		49,800
Network Appliance Inc *		1,900		51,129
Novell Inc *		3,300		25,212
NVIDIA Corp *		4,500		163,080
Oracle Corp *		32,770		709,471
QUALCOMM Inc		30,620		1,294,001
Red Hat Inc *		1,900		37,753
Rockwell Automation Inc		500		34,755
salesforce.com inc *		400		20,528
Symantec Corp *		12,300		238,374
Synopsys Inc *		900		24,372
Texas Instruments Inc		18,540		678,379
Tyco Electronics Ltd (Bermuda)		4,765		168,824
Western Digital Corp *		1,800		45,576
Xilinx Inc		1,800		47,052
				21,462,540
Utilities - 4.37%
Alltel Corp		5,880		409,718
American Electric Power Co Inc		970		44,698
AT&T Inc		19,993		845,904
CenturyTel Inc		900		41,598
Edison International		6,150		341,018
Embarq Corp		800		44,480
PG&E Corp		4,470		213,666
Progress Energy Inc		3,300		154,605
Qwest Communication International Inc *		58,470		535,585
Sempra Energy		4,140		240,617
Sprint Nextel Corp		41,140		781,660
Telephone & Data Systems Inc		400		26,700
Verizon Communications Inc		23,660		1,047,665
Windstream Corp		900		12,708
				4,740,622
Total Common Stocks
(Cost $95,362,579)				107,780,406
TOTAL INVESTMENTS - 99.26%
(Cost $95,362,579)				107,780,406
OTHER ASSETS & LIABILITIES, NET - 0.74%				799,620
NET ASSETS - 100.00%			$	108,580,026

Note to Schedule of Investments

(a) As of September 30, 2007, the Fund was diversified as a percentage of net assets as follows:

Financial Services	23.78	%
Technology	19.77	%
Health Care	11.24	%
Integrated Oils	10.47	%
Consumer Discretionary	8.91	%
Consumer Staples	6.39	%
Producer Durables	5.03	%
Multi-Industry	4.37	%
Utilities	4.37	%
Energy	2.51	%
Materials & Processing	2.18	%
Autos & Transportation	0.24	%
	99.26	%
Other Assets & Liabilities, Net	0.74	%
	100.00	%

See Notes to Financial Statements A-24 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL EMERGING MARKETS FUND
Schedule of Investments
September 30, 2007 (Unaudited)

	Shares		Value
PREFERRED STOCKS - 7.10%
Brazil - 6.84%
America Latina Logistica SA		70,000	$	987,561
Banco Bradesco SA		25,794		755,539
Cia Vale do Rio Doce ADR		26,100		742,545
Eletropaulo Metropolitana de Sao Paulo SA ‘B’		2,947,200		195,982
Lojas Americanas SA		66,440		666,212
Net Servicos de Comunicacao SA *		1,700		28,055
Sadia SA		40,000		223,677
Tele Norte Leste Participacoes SA		4,000		90,562
				3,690,133
South Korea - 0.26%
Hyundai Motor Co +		1,590		65,860
S-Oil Corp +		955		72,648
				138,508
Total Preferred Stocks (Cost $1,791,454)				3,828,641
COMMON STOCKS - 87.25%
Bermuda - 0.50%
Bunge Ltd		1,600		171,920
Varitronix International Ltd +		126,000		99,194
				271,114
Brazil - 11.34%
America Latina Logistica SA GDR ~		5,300		74,488
Aracruz Celulose SA ADR		2,500		183,975
B2W Compania Global do Varejo		1,000		47,185
Banco Bradesco SA ADR		11,000		323,070
Camargo Correa Desenvolvimento Imobiliario SA		14,000		94,326
Cia Brasileira de Distribuicao Grupo Pao de Acucar ADR		4,000		121,280
Cia de Bebidas das Americas ADR		800		56,632
Cia Vale do Rio Doce ADR		19,400		658,242
Cyrela Brazil Realty SA Empreendimentos e Participacoes GDR ~		1,700		453,641
Cyrela Commercial Properties SA Empreendimentos e Participacoes GDR * ~		2,100		53,185
Diagnosticos da America SA		8,800		202,021
Embraer-Empresa Brasileira de Aeronautica SA ADR		19,700		865,224
Natura Cosmeticos SA		34,900		417,924
Petroleo Brasileiro SA ADR		29,300		2,212,150
Tele Norte Leste Participacoes SA		10,600		352,755
				6,116,098
Canada - 0.28%
Yamana Gold Inc		12,800		150,784
Cayman Islands - 0.53%
SINA Corp *		4,900		234,465
Tencent Holdings Ltd +		8,000		51,470
				285,935
China - 2.35%
China Oilfield Services Ltd ‘H’ +		72,000		164,681
China Shenhua Energy Co Ltd ‘H’ +		132,000		790,514
PetroChina Co Ltd ‘H’ +		168,000		312,040
				1,267,235

Egypt - 3.46%
Commercial International Bank GDR	3,750	50,306
Commercial International Bank SP GDR	14,400	193,174
Commercial International Bank SP GDR ~	11,800	161,620
Eastern Tobacco Co SAE	4,167	291,589
Medinet Nasr Housing & Development +	27,410	238,736
Orascom Telecom Holding SAE +	71,864	932,778
		1,868,203
France - 0.86%
Technip SA +	5,200	464,185
Hong Kong - 3.09%
China Mobile Ltd ADR	11,700	959,868
China Unicom Ltd +	150,000	311,512
Hutchison Whampoa Ltd +	17,000	181,559
Television Broadcasts Ltd +	36,000	215,709
		1,668,648
India - 16.04%
Amtek Auto Ltd +	18,500	167,411
Bajaj Auto Ltd +	4,800	304,723
Bharat Electronics Ltd +	5,600	257,582
Bharat Forge Ltd +	3,300	23,609
Bharat Heavy Electricals Ltd +	4,963	252,979
Bharti Airtel Ltd * +	11,300	265,724
Divi’s Laboratories Ltd +	13,134	400,814
GAIL India Ltd +	19,730	187,067
HCL Technologies Ltd +	28,390	213,136
HDFC Bank Ltd ADR	700	74,991
Hindustan Unilever Ltd +	53,500	295,464
Housing Development Finance Corp +	19,200	1,214,737
ICICI Bank Ltd ADR	12,900	680,088
Infosys Technologies Ltd +	30,600	1,446,966
ITC Ltd +	38,200	181,536
Larsen & Toubro Ltd +	10,100	709,581
Mahindra & Mahindra Ltd +	13,569	255,199
Reliance Capital Ltd +	9,000	356,475
Reliance Industries Ltd +	6,700	385,203
Rico Auto Industries Ltd +	2,200	2,084
Siemens India Ltd +	4,300	145,260
Tata Consultancy Services Ltd +	25,118	667,290
Trent Ltd +	3,382	47,876
United Breweries Ltd +	12,290	117,275
		8,653,070
Indonesia - 4.53%
P.T. Aneka Tambang Tbk +	1,401,500	424,030
P.T. Astra International Tbk +	134,000	281,749
P.T. Gudang Garam Tbk +	203,500	209,243
P.T. Indosat Tbk +	660,000	557,198
P.T. Ramayana Lestari Sentosa Tbk +	317,990	29,536
P.T. Telekomunikasi Indonesia Tbk +	778,500	941,445
		2,443,201
Israel - 0.59%
Bank Hapoalim BM +	27,933	144,481
Israel Discount Bank Ltd ‘A’ * +	76,600	175,234
		319,715
Lebanon - 0.23%
Solidere GDR ~	7,200	126,000

See Notes to Financial Statements A-25 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL EMERGING MARKETS FUND
Schedule of Investments (Continued)
September 30, 2007 (Unaudited)

		Shares		Value
Luxembourg - 0.45%
	��
Tenaris SA ADR			4,600	$	242,052
Mexico - 6.84%
America Movil SAB de CV ‘L’ ADR			13,100		838,400
Corporacion GEO SAB de CV ‘B’ *			34,600		151,814
Corporacion Interamericana de Entretenimiento SA de CV ‘B’ *			31,800		90,422
Empresas ICA SAB de CV *			37,617		226,820
Fomento Economico Mexicano SAB de CV			140,400		522,967
Fomento Economico Mexicano SAB de CV ADR			9,150		342,210
Grupo Financiero Banorte SAB de CV ‘O’			159,400		631,048
Grupo Financiero Inbursa SA de CV ‘O’			66,800		160,016
Grupo Televisa SA ADR			11,400		275,538
Impulsora del Desarrollo y el Empleo en America Latina SAB de CV *			143,000		218,081
SARE Holding SAB de CV ‘B’ *			154,518		233,104
					3,690,420
Norway - 0.31%
Det Norske Oljeselskap ASA * +			81,368		167,960
Panama - 0.41%
Banco Latinoamericano de Exportaciones SA ‘E’			12,200		221,796
Philippines - 1.50%
Jollibee Foods Corp +			134,600		157,752
SM Prime Holdings Inc +			2,462,659		652,675
					810,427
Portugal - 0.24%
Jeronimo Martins Sociedade Gestora de Participacoes Sociais SA +			20,700		127,454
Russia - 3.95%
LUKOIL ADR			7,400		613,164
OAO Gazprom ADR +			20,700		908,937
Polymetal GDR * ~			28,100		181,245
TMK OAO GDR ~			10,500		428,400
					2,131,746
South Africa - 5.25%
Anglo Platinum Ltd +			5,200		787,138
AngloGold Ashanti Ltd ADR			9,200		431,388
Aspen Pharmacare Holdings Ltd * +			14,430		70,148
Harmony Gold Mining Co Ltd ADR *			8,800		104,808
Impala Platinum Holdings Ltd +			10,600		369,435
JD Group Ltd +			4,400		37,159
Liberty Group Ltd +			9,900		125,888
Massmart Holdings Ltd +			22,800		275,898
Murray & Roberts Holdings Ltd +			23,260		303,625
Steinhoff International Holdings Ltd +			78,100		220,724
Tiger Brands Ltd +			4,019		106,185
					2,832,396
South Korea - 8.40%
AmorePacific Corp +			357		265,895
FINETEC Corp +			7,425		156,883
GS Engineering & Construction Corp +			1,438		248,549
Hana Financial Group Inc à +			—		9
Humax Co Ltd +			5,687		113,445

Hyundai Development Co +	2,460	228,800
Hyundai Engineering & Construction Co Ltd * +	4,738	450,368
Hyundai Motor Co +	3,731	300,517
Jeonbuk Bank +	13,391	125,271
Kia Motors Corp * +	15,630	211,963
Kookmin Bank ADR	2,800	229,572
Korea Exchange Bank +	6,640	107,326
Mirae Asset Securities Co Ltd +	1,174	111,622
Pusan Bank +	8,400	153,788
S-Oil Corp +	3,720	330,280
Samsung Electronics Co Ltd +	1,525	954,252
Shinsegae Co Ltd +	348	241,520
SK Telecom Co Ltd ADR	9,000	267,300
SsangYong Motor Co * +	2,900	18,680
Telechips Inc +	650	12,790
		4,528,830
Taiwan - 10.30%
Cathay Financial Holding Co Ltd +	192,303	454,463
Fubon Financial Holding Co Ltd +	250,000	212,826
Hon Hai Precision Industry Co Ltd +	142,800	1,075,625
Inventec Appliances Corp +	15,150	30,058
Lite-On Technology Corp +	131,302	205,393
MediaTek Inc +	80,150	1,440,802
MiTAC International Corp à +	—	—
Motech Industries Inc + à	1	10
President Chain Store Corp +	88,000	247,510
Quanta Computer Inc +	4,946	7,787
Shin Kong Financial Holding Co Ltd à +	1	—
Synnex Technology International Corp +	137,790	387,494
Taiwan Semiconductor Manufacturing Co Ltd ADR	23,138	234,157
Taiwan Semiconductor Manufacturing Co Ltd +	653,779	1,260,241
		5,556,366
Thailand - 1.02%
Advanced Info Service PCL +	64,100	164,326
Kiatnakin Bank PCL +	96,200	86,218
TISCO Bank PCL +	101,000	91,743
TMB Bank PCL * +	3,690,563	207,522
		549,809
Turkey - 4.32%
Aksigorta AS +	41,000	283,449
Anadolu Anonim Turk Sigorta Sirketi à +	—	1
Anadolu Efes Biracilik Ve Malt Sanayii AS +	10,365	108,253
BIM Birlesik Magazalar AS +	600	49,660
Ford Otomotiv Sanayi AS +	12,947	136,936
Haci Omer Sabanci Holding AS ADR	73,800	118,043
Haci Omer Sabanci Holding AS +	53,600	341,807
Koc Holding AS * +	56,016	294,119
Tupras Turkiye Petrol Rafinerileri AS +	5,000	132,240
Turkcell Iletisim Hizmetleri AS +	67,100	571,677
Turkiye Vakiflar Bankasi TAO ‘D’ +	86,548	294,442
		2,330,627
United Kingdom - 0.46%
HSBC Holdings PLC (HSI) +	13,600	249,651
Total Common Stocks (Cost $31,963,890)		47,073,722

See Notes to Financial Statements A-26 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL EMERGING MARKETS FUND
Schedule of Investments (Continued)
September 30, 2007 (Unaudited)

	Shares		Value
SHORT-TERM INVESTMENT - 2.50%
Money Market Fund - 2.50%
BlackRock Liquidity Funds Institutional TempFund		1,351,356	$	1,351,356
Total Short-Term Investment (Cost $1,351,356)				1,351,356
TOTAL INVESTMENTS - 96.85% (Cost $35,106,700)				52,253,719
OTHER ASSETS & LIABILITIES, NET - 3.15%				1,701,779
NET ASSETS - 100.00%			$	53,955,498

Notes to Schedule of Investments

(a) As of September 30, 2007, the Fund was diversified as a percentage of net assets as follows:

Financial Services	18.00	%
Technology	15.10	%
Utilities	12.40	%
Integrated Oils	9.97	%
Materials & Processing	9.05	%
Consumer Discretionary	6.84	%
Producer Durables	6.23	%
Autos & Transportation	5.20	%
Consumer Staples	4.54	%
Multi-Industry	4.30	%
Short-Term Investments	2.50	%
Energy	1.47	%
Health Care	1.25	%
	96.85	%
Other Assets & Liabilities, Net	3.15	%
	100.00	%

(b) As of September 30, 2007, the Fund was diversified by geographical region as a percentage of net assets as follows:

Brazil	18.18	%
India	16.04	%
Taiwan	10.30	%
South Korea	8.66	%
Mexico	6.84	%
South Africa	5.25	%
Indonesia	4.53	%
Turkey	4.32	%
Russia	3.95	%
Egypt	3.46	%
Hong Kong	3.09	%
United States	2.50	%
China	2.35	%
Philippines	1.50	%
Thailand	1.02	%
France	0.86	%
Israel	0.59	%
Cayman Islands	0.53	%
Bermuda	0.50	%
United Kingdom	0.46	%
Luxembourg	0.45	%
Panama	0.41	%
Norway	0.31	%
Canada	0.28	%
Portugal	0.24	%
Lebanon	0.23	%
	96.85	%
Other Assets & Liabilities, Net	3.15	%
	100.00	%

(c) Securities with a total aggregate market value of $31,238,981, or 57.90% of the net assets, were valued under the fair value procedures established by the Funds’ Board of Trustees.

See Notes to Financial Statements A-27 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments
September 30, 2007 (Unaudited)

		Principal Amount		Value
CORPORATE BONDS & NOTES - 12.89%
Consumer Staples - 0.07%
Reynolds American Inc 7.625% due 06/01/16		$	100,000	$	106,970
Energy - 0.29%
Colorado Interstate Gas Co 6.800% due 11/15/15			200,000		208,043
Enterprise Products Operating LP 4.625% due 10/15/09			100,000		99,210
The Williams Cos Inc 6.375% due 10/01/10 ~			100,000		101,000
					408,253
Financial Services - 10.65%
American Express Bank FSB
5.139% due 09/26/08 §			500,000		498,880
5.826% due 06/12/09 §			600,000		597,589
6.000% due 09/13/17			1,200,000		1,196,166
American Express Centurion Bank 6.000% due 09/13/17			1,200,000		1,196,166
Bank of America Corp 4.875% due 01/15/13			100,000		97,727
Barclays Bank PLC (United Kingdom) 5.450% due 09/12/12			1,000,000		1,007,561
Citigroup Inc
5.625% due 08/27/12			50,000		50,640
5.875% due 05/29/37			200,000		193,447
Deutsche Bank AG London (Germany) 6.000% due 09/01/17			900,000		913,318
Export-Import Bank of Korea (South Korea) 5.580% due 10/04/11 ~ §			800,000		800,994
Ford Motor Credit Co LLC
5.800% due 01/12/09			200,000		193,231
7.800% due 06/01/12			300,000		285,662
7.875% due 06/15/10			100,000		97,811
General Electric Capital Corp 5.628% due 08/15/11 §			500,000		494,097
Glitnir Banki HF (Iceland) 5.620% due 04/20/10 ~ §			100,000		98,124
GMAC LLC 7.000% due 02/01/12			700,000		665,162
HCP Inc 5.950% due 09/15/11			900,000		910,310
HSBC Finance Corp 5.500% due 05/21/08 §			400,000		399,842
Lehman Brothers Holdings Inc 5.260% due 12/23/08 §			500,000		494,579
Merrill Lynch & Co Inc
5.400% due 10/23/08 §			400,000		398,928
5.665% due 08/14/09 §			400,000		397,448
Morgan Stanley
5.300% due 03/01/13			100,000		98,537
5.470% due 02/09/09 §			300,000		298,299
Nykredit Realkredit A/S (Denmark) 5.000% due 10/01/38 §	DKK		1,693,393		306,662
Realkredit Danmark A/S (Denmark) 5.000% due 10/01/38 §			3,289,146		594,802
Santander US Debt SA Unipersonal (Spain) 5.729% due 11/20/09 ~ §		$	500,000		498,294
The Bear Stearns Co Inc 5.660% due 01/30/09 §			500,000		495,559
The Goldman Sachs Group Inc 6.250% due 09/01/17			1,100,000		1,126,146
The Royal Bank of Scotland Group PLC (United Kingdom) 6.990% due 10/29/49 ~ §			100,000		102,054

Unicredito Luxembourg Finance SA (Luxembourg) 5.410% due 10/24/08 ~ §	400,000	400,275
VTB Capital SA for Vneshtorgbank (Luxembourg) 5.956% due 08/01/08 ~ §	200,000	198,250
		15,106,560
Health Care - 0.07%
HCA Inc 9.250% due 11/15/16 ~	100,000	106,500
Integrated Oils - 0.13%
Pemex Project Funding Master Trust
7.375% due 12/15/14	50,000	55,230
9.250% due 03/30/18	100,000	126,050
		181,280
Materials & Processing - 0.57%
C10 Capital SPV Ltd (United Kingdom) 6.722% due 12/31/49 §	300,000	288,285
Codelco Inc (Chile) 6.150% due 10/24/36 ~	200,000	195,675
Equistar Chemical LP/Equistar Funding Corp 10.125% due 09/01/08	114,000	118,275
Vale Overseas Ltd (Cayman) 6.250% due 01/23/17	200,000	203,240
		805,475
Producer Durables - 0.15%
Xerox Corp 9.750% due 01/15/09	200,000	210,121
Utilities - 0.96%
BellSouth Corp 4.240% due 04/26/08 ~	900,000	894,893
Entergy Gulf States Inc 3.600% due 06/01/08	100,000	98,457
PSEG Energy Holdings LLC 8.625% due 02/15/08	163,000	164,664
Qwest Communications International Inc 7.500% due 02/15/14	100,000	101,750
SBC Communications Inc 4.125% due 09/15/09	100,000	98,418
		1,358,182
Total Corporate Bonds & Notes (Cost $18,155,632)		18,283,341
SENIOR LOAN NOTES - 0.69%
Health Care - 0.69%
HCA Inc Term B 7.450% due 11/16/13 §	1,000,000	983,281
Total Senior Loan Notes (Cost $968,750)		983,281

See Notes to Financial Statements A-28 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS

PL MANAGED BOND FUND

Schedule of Investments (Continued)

September 30, 2007 (Unaudited)

	Principal Amount		Value
MORTGAGE-BACKED SECURITIES - 78.16%
Collateralized Mortgage Obligations - 20.80%
Adjustable Rate Mortgage Trust 4.588% due 05/25/35 “ §	$	144,099	$	142,594
Arkle Master Issuer PLC (United Kingdom) 5.733% due 11/19/07 ~ “ §		400,000		399,930
Arran Residential Mortgages Funding PLC (United Kingdom) 5.826% due 04/12/36 ~ “ §		185,324		185,253
Banc of America Funding Corp 4.111% due 05/25/35 “ §		288,068		281,933
Banc of America Mortgage Securities Inc
3.994% due 07/25/33 “ §		186,846		182,654
5.000% due 05/25/34 “		111,529		109,579
Bear Stearns Adjustable Rate Mortgage Trust Inc
4.537% due 08/25/33 “ §		486,395		470,917
4.750% due 10/25/35 “ §		185,234		183,460
4.125% due 03/25/35 “ §		565,367		552,388
4.550% due 08/25/35 “ §		144,396		144,878
4.625% due 10/25/35 “ §		722,939		709,757
Bear Stearns Alt-A Trust
5.373% due 05/25/35 “ §		102,206		102,420
5.520% due 09/25/35 “ §		117,338		117,217
5.814% due 11/25/36 “ §		157,421		157,813
Chevy Chase Mortgage Funding Corp 5.381% due 08/25/35 ~ “ §		172,297		169,252
Citigroup Mortgage Loan Trust Inc
4.248% due 08/25/35 “ §		159,839		156,136
4.700% due 12/25/35 “ §		244,753		242,599
Countrywide Alternative Loan Trust 5.508% due 06/25/37 “ §		560,677		560,036
Countrywide Home Loan Mortgage Pass-Through Trust
5.451% due 03/25/35 “ §		65,669		64,042
5.471% due 06/25/35 ~ “ §		297,661		291,567
CS First Boston Mortgage Securities Corp
5.953% due 03/25/32 ~ “ §		17,664		17,616
6.000% due 11/25/35 “		251,692		253,585
Fannie Mae
4.250% due 07/25/17 “		430,076		420,882
4.500% due 04/25/17 - 10/25/17 “ ±		804,762		789,198
5.000% due 01/25/17 - 07/25/19 “ ±		399,735		398,450
5.500% due 09/25/24 “		1,021,607		1,023,833
6.000% due 03/25/31 “		2,327,480		2,363,835
6.625% due 11/25/23 “ §		651,693		666,557
Freddie Mac
6.183% due 10/25/44 “ §		100,004		99,731
6.383% due 07/25/44 “ §		523,061		522,317
4.000% due 06/15/22 - 10/15/23 “ ±		1,173,289		1,164,283
4.500% due 06/15/17 - 10/15/19 “ ±		954,775		942,207
5.000% due 09/15/16 - 04/15/30 “ ±		7,478,597		7,485,389
5.500% due 03/15/17 “		94,813		95,942
5.983% due 02/15/19 “ §		2,328,193		2,322,188
6.250% due 04/15/23 “		14,823		14,837
8.000% due 04/15/30 “		637,294		639,509
GMAC Mortgage Corp Loan Trust 5.500% due 09/25/34 “		106,684		106,427
Harborview Mortgage Loan Trust
5.593% due 01/19/38 “ §		235,691		234,619
5.693% due 01/19/38 “ §		339,439		331,604
5.723% due 05/19/35 “ §		64,848		63,541
JPMorgan Mortgage Trust 5.023% due 02/25/35 “ §		139,515		135,227
Lehman Brothers Floating Rate Commercial Mortgage Trust 5.833% due 09/15/21 ~ “ §		76,474		76,441
Mellon Residential Funding Corp 6.233% due 06/15/30 “ §		25,397		25,057

Merrill Lynch Mortgage Investors Trust 5.341% due 02/25/36 “ §	74,337	73,744
MLCC Mortgage Investors Inc 6.133% due 03/15/25 “ §	35,945	34,476
Residential Accredit Loans Inc 6.000% due 06/25/36 “	575,143	579,533
Residential Asset Securitization Trust 5.531% due 05/25/33 “ §	60,669	60,168
Structured Asset Mortgage Investments Inc 5.351% due 05/25/36 “ §	326,432	319,315
Structured Asset Securities Corp
7.433% due 08/25/32 “ §	38,859	38,758
5.322% due 10/25/35 ~ “ §	270,309	267,879
5.000% due 12/25/34 “	198,611	197,937
Wachovia Bank Commercial Mortgage Trust 5.843% due 09/15/21 ~ “ §	436,772	435,185
Washington Mutual Inc
5.441% due 01/25/45 “ §	57,121	56,129
5.451% due 01/25/45 “ §	53,343	52,525
5.527% due 02/27/34 “ §	17,053	16,967
5.671% due 12/25/27 “ §	142,058	142,047
6.383% due 08/25/42 “ §	12,094	12,153
6.483% due 09/25/46 “ §	168,245	167,213
Wells Fargo Mortgage-Backed Securities Trust
3.992% due 12/25/34 “ §	338,618	333,052
4.320% due 07/25/35 “ §	400,000	395,766
5.241% due 04/25/36 “ §	503,301	501,664
5.517% due 08/25/36 “ §	153,333	152,145
4.500% due 11/25/18 “	256,761	251,074
		29,505,430
Fannie Mae - 49.60%
3.845% due 10/01/33 “ §	966,239	966,021
4.187% due 11/01/34 “ §	482,491	483,002
4.710% due 09/01/35 “ §	438,937	450,706
4.929% due 12/01/35 “ §	279,339	279,910
5.000% due 08/01/20 - 10/15/37 “ ±	15,342,731	14,687,904
5.121% due 11/01/32 “ §	530,641	531,829
5.471% due 06/01/37 “ §	2,373,504	2,386,195
5.500% due 12/01/14 - 11/15/37 “ ±	44,875,925	44,055,615
6.000% due 09/01/22 - 01/01/23 “ ±	6,203,373	6,208,454
6.205% due 10/01/44 “ §	122,478	124,492
6.260% due 12/01/36 “ §	39,524	40,040
6.500% due 03/01/17 “	122,256	125,324
		70,339,492
Freddie Mac - 7.76%
4.705% due 06/01/35 “ §	943,384	960,357
4.739% due 09/01/35 “ §	373,562	370,456
5.334% due 09/01/35 “ §	380,744	380,760
5.500% due 03/01/23 - 09/01/37 “ ±	9,078,509	8,893,400
5.909% due 11/01/31 “ §	25,246	25,969
6.000% due 12/01/22 - 03/01/23 “ ±	307,553	310,457
7.321% due 04/01/32 “ §	64,712	65,286
		11,006,685
Total Mortgage-Backed Securities (Cost $111,042,723)		110,851,607
ASSET-BACKED SECURITIES - 5.05%
Argent Securities Inc 5.181% due 10/25/36 “ §	473,735	470,152
Asset Backed Funding Certificates
5.191% due 10/25/36 “ §	190,285	189,194
5.481% due 06/25/34 “ §	145,261	141,976
Bear Stearns Asset Backed Securities Inc 5.520% due 10/25/36 “ §	315,130	312,529

See Notes to Financial Statements A-29 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS

PL MANAGED BOND FUND

Schedule of Investments (Continued)

September 30, 2007 (Unaudited)

	Principal Amount		Value
Carrington Mortgage Loan Trust 5.291% due 01/25/36 “ §	$	500,000	$	495,029
Citigroup Mortgage Loan Trust Inc 5.181% due 10/25/36 “ §		198,851		197,911
First Franklin Mortgage Loan Asset-Backed Certificates 5.181% due 11/25/36 “ §		305,944		301,579
HSI Asset Securitization Corp Trust 5.181% due 12/25/36 “ §		394,512		390,929
JPMorgan Mortgage Acquisition Corp
5.181% due 07/25/36 “ §		211,810		210,812
5.201% due 03/25/36 “ §		113,350		113,097
5.341% due 06/25/35 “ §		40,652		40,608
Lehman XS Trust
5.211% due 07/25/46 “ §		143,162		142,650
5.251% due 11/25/36 “ §		216,917		216,678
Long Beach Mortgage Loan Trust 5.411% due 10/25/34 “ §		19,852		19,358
Nelnet Student Loan Trust 5.220% due 12/22/14 “ §		108,071		108,026
Park Place Securities Inc 5.391% due 09/25/35 “ §		178,849		177,475
Residential Asset Securities Corp 5.201% due 11/25/36 “ §		263,727		262,497
Saxon Asset Securities Trust 5.191% due 11/25/36 “ §		213,125		212,048
SBI Heloc Trust 5.301% due 08/25/36 ~ “ §		252,326		239,710
Securitized Asset-Backed Receivables LLC Trust
5.181% due 09/25/36 “ §		241,734		239,713
5.261% due 05/25/37 “ §		553,263		548,812
SLC Student Loan Trust 5.538% due 02/15/15 “ §		591,094		589,894
SLM Student Loan Trust 5.360% due 10/25/16 “ §		600,000		600,343
Small Business Administration 4.754% due 08/10/14 “		153,359		149,991
Soundview Home Equity Loan Trust 5.231% due 10/25/36 “ §		168,487		167,697
Structured Asset Securities Corp 5.181% due 10/25/36 “ §		264,697		262,060
Wells Fargo Home Equity Trust 5.181% due 01/25/37 “ §		366,723		364,595
Total Asset-Backed Securities (Cost $7,223,292)				7,165,363
U.S. TREASURY OBLIGATIONS - 7.46%
U.S. Treasury Bonds - 3.08%
4.750% due 02/15/37		3,800,000		3,748,643
5.000% due 05/15/37		600,000		615,656
				4,364,299
U.S. Treasury Inflation Protected Securities - 4.38%
0.875% due 04/15/10 ^		1,869,252		1,807,772
2.000% due 07/15/14 ^		552,545		545,250
2.375% due 04/15/11 ^		944,523		950,943
2.375% due 01/15/27 ^		1,652,688		1,673,348
2.625% due 07/15/17 ^		1,206,072		1,243,574
				6,220,887
Total U.S. Treasury Obligations (Cost $10,329,675)				10,585,186

FOREIGN GOVERNMENT BONDS & NOTES - 0.04%
Republic of Panama (Panama) 9.625% due 02/08/11	48,000	53,832
Total Foreign Government Bonds & Notes (Cost $52,093)		53,832
MUNICIPAL BONDS - 0.29%
Austin Texas Water & Wastewater System Revenue ‘A’ 5.000% due 11/15/29	200,000	206,638
Houston Texas Utilities Systems First Lien Revenue ‘A’ 5.000% due 11/15/36	100,000	103,202
Texas State Transportation Commission Mobility Fund ‘A’ 4.750% due 04/01/35	100,000	99,543
Total Municipal Bonds (Cost $403,230)		409,383
PURCHASED OPTIONS - 0.86%
(See Note (e) to Notes to Schedule of Investments) (Cost $765,305)		1,222,081
SHORT-TERM INVESTMENTS - 13.24%
Certificates of Deposit - 4.37%
Barclays Bank PLC NY 5.714% due 03/17/08 §	600,000	600,188
Dexia Credit Local SA NY 5.079% due 09/29/08 §	500,000	500,167
Fortis Bank NY
5.074% due 06/30/08 §	400,000	400,144
5.148% due 09/30/08 §	500,000	500,163
Nordea Bank Finland PLC NY
5.090% due 03/31/08 §	900,000	899,548
5.443% due 05/28/08 §	500,000	499,984
5.683% due 12/01/08 §	1,100,000	1,098,511
Skandinaviska Enskilda Banken NY 5.670% due 10/03/07 §	400,000	400,000
Societe Generale NY 5.079% due 03/26/08 §	400,000	400,028
The Royal Bank of Scotland NY 5.074% due 03/26/08 §	400,000	399,621
Unicredito Italiano NY 5.506% due 05/29/08 §	500,000	499,669
		6,198,023
Commercial Paper - 3.94%
Bank of America Corp 5.250% due 10/02/07	3,000,000	2,999,560
General Electric Capital Corp 5.170% due 11/06/07	1,100,000	1,093,653
Rabobank Nederland 4.900% due 10/01/07	1,500,000	1,500,000
		5,593,213
U.S. Treasury Bills - 0.69%
3.855% due 12/13/07 ‡	450,000	446,680
4.615% due 11/29/07 ‡	535,000	531,819
		978,499

See Notes to Financial Statements A-30 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2007 (Unaudited)

	Shares		Value
Money Market Funds - 4.24%
BlackRock Liquidity Funds Institutional TempCash		3,004,694	$	3,004,694
BlackRock Liquidity Funds Institutional TempFund		3,004,694		3,004,694
				6,009,388
Total Short-Term Investments (Cost $18,779,276)				18,779,123
TOTAL INVESTMENTS - 118.68% (Cost $167,719,976)				168,333,197
OTHER ASSETS & LIABILITIES, NET - (18.68%)				(26,499,971	)
NET ASSETS - 100.00%			$	141,833,226

Notes to Schedule of Investments

(a) As of September 30, 2007, the Fund was diversified as a percentage of net assets as follows:

Mortgage-Backed Securities	78.16	%
Short-Term Investments	13.24	%
Corporate Bonds & Notes	12.89	%
U.S. Treasury Obligations	7.46	%
Asset-Backed Securities	5.05	%
Purchased Options	0.86	%
Senior Loan Notes	0.69	%
Municipal Bonds	0.29	%
Foreign Government Bonds & Notes	0.04	%
	118.68	%
Other Assets & Liabilities, Net	(18.68	%)
	100.00	%

(b) Short-term securities reflect either the stated coupon rate or the annualized effective yield on the date of purchase for discounted securities.

(c) Securities with an aggregate market value of $978,499 were segregated with the broker to cover margin requirements for the following open futures contracts as of September 30, 2007:

Long Futures Outstanding	Number of Contracts	Notional Amount		Net Unrealized Appreciation (Depreciation)
3-Month Euribor (03/08)	46	EUR	46,000,000	$	820
Euro-Bobl 5-Year Notes Put Options Strike @ EUR 102.75 (12/07)	97		9,700,000		(632	)
Euro-Bobl 5-Year Notes (12/07)	76		7,600,000		(22,216	)
Euro-Schatz 2-Year Notes Put Options Strike @ EUR 100.90 (12/07)	28		2,800,000		10
Eurodollar (12/07)	50	$	50,000,000		13,375
Eurodollar (03/08)	44		44,000,000		80,575
Eurodollar (06/08)	245		245,000,000		317,388
Eurodollar (12/08)	86		86,000,000		216,175
Eurodollar (03/09)	334		334,000,000		166,100
United Kingdom 90-Day LIBOR Put Options Strike @ GBP 92.50 (06/08)	79	GBP	39,500,000		(956	)
United Kingdom 90-Day LIBOR Put Options Strike @ GBP 93.00 (12/07)	48		24,000,000		25

United Kingdom 90-Day LIBOR Put Options Strike @ GBP 93.00 (03/08)	82		41,000,000		37
United Kingdom 90-Day LIBOR Sterling Interest Rate (12/07)	4		2,000,000		3,478
United Kingdom 90-Day LIBOR Sterling Interest Rate (03/08)	40		20,000,000		7,161
United Kingdom 90-Day LIBOR Sterling Interest Rate (06/08)	4		2,000,000		2,148
United Kingdom 90-Day LIBOR Sterling Interest Rate (09/08)	146		73,000,000		258,716
Short Futures Outstanding
Euro-Bund 10-Year Notes (12/07)	25	EUR	2,500,000		13,019
Euro-Schatz 2-Year Notes (12/07)	48		4,800,000		20,776
United Kingdom 90-Day LIBOR Sterling Interest Rate (12/07)	9	GBP	900,000		1,105
U.S. Treasury 2-Year Notes (12/07)	43	$	8,600,000		(20,828	)
U.S. Treasury 5-Year Notes (12/07)	84		8,400,000		(21,062	)
U.S. Treasury 10-Year Notes (12/07)	187		18,700,000		72,562
U.S. Treasury 20-Year Bonds (12/07)	132		13,200,000		(1,203	)
				$	1,106,573

(d) Forward foreign currency contracts outstanding as of September 30, 2007 were as follows:

Contracts to Buy or to Sell	Currency		Principal Amount Covered by Contracts	Expiration	Net Unrealized Appreciation (Depreciation)
Sell		AUD	61,207	10/07		($3,832	)
Buy		BRL	8,936,000	10/07		319,661
Sell		BRL	8,936,000	10/07		(305,559	)
Buy		BRL	2,499,761	03/08		113,772
Sell		BRL	746,768	03/08		(20,007	)
Buy		BRL	7,625,083	07/08		222,304
Buy		CNY	8,790,219	11/07		10,823
Sell		CNY	8,305,349	11/07		638
Buy		CNY	8,717,700	01/08		3,776
Sell		CNY	9,105,450	01/08		(3,346	)
Buy		CNY	7,696,314	07/08		12,054
Sell		DKK	4,871,000	12/07		(39,404	)
Buy		EUR	1,901,000	10/07		111,528
Sell		EUR	3,572,000	10/07		(227,073	)
Buy		GBP	29,000	11/07		822
Sell		GBP	853,095	11/07		(30,391	)
Buy		JPY	383,778,384	10/07		40,214
Sell		JPY	285,481,345	10/07		(4,985	)
Buy		KRW	298,722,600	10/07		926
Sell		KRW	298,722,600	10/07		(3,131	)
Buy		KRW	196,375,500	01/08		(255	)
Buy		KRW	325,289,728	08/08		3,666
Buy		MXN	8,172,660	03/08		15,601
Buy		MXN	5,515,905	07/08		1,162
Buy		MYR	294,593	10/07		762
Sell		MYR	294,593	10/07		(937	)
Buy		MYR	294,593	08/08		613
Sell		NZD	220,000	10/07		(13,075	)
Buy		PLN	928,644	07/08		12,704
Buy		RUB	8,442,840	12/07		16,046
Buy		RUB	14,879,135	01/08		8,056
Buy		RUB	15,573,305	07/08		5,556
Buy		SGD	552,837	10/07		5,880
Sell		SGD	70,937	10/07		(990	)
Buy		SGD	71,891	02/08		589
Buy		SGD	70,094	05/08		980
					$	255,148

See Notes to Financial Statements A-31 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2007 (Unaudited)

(e) Purchased options outstanding as of September 30, 2007:

Interest Rate Swaptions

Counterparty	Description	Pay/Receive Floating Rate Based on 3-Month USD-LIBOR	Exercise Rate		Expiration Date	Notional Amount		Cost		Value
Royal Bank of Scotland	Call- OTC 2-Year Interest Rate Swap	Pay	4.900	%	10/25/07	$	3,100,000	$	12,478	$	18,572
Citigroup	Call- OTC 5-Year Interest Rate Swap	Pay	4.840	%	11/23/07		4,100,000		23,985		29,441
Lehman Brothers	Call- OTC 2-Year Interest Rate Swap	Pay	5.000	%	12/20/07		4,400,000		28,512		41,216
Barclays	Call- OTC 1-Year Interest Rate Swap	Pay	4.750	%	02/01/08		3,100,000		8,913		11,394
Royal Bank of Scotland	Call- OTC 2-Year Interest Rate Swap	Pay	5.000	%	02/01/08		3,000,000		14,876		30,513
Royal Bank of Scotland	Call- OTC 2-Year Interest Rate Swap	Pay	4.750	%	03/31/08		14,200,000		80,795		112,096
Lehman Brothers	Call- OTC 2-Year Interest Rate Swap	Pay	4.750	%	09/26/08		5,300,000		18,418		46,785
Royal Bank of Scotland	Call- OTC 2-Year Interest Rate Swap	Pay	4.750	%	09/26/08		5,300,000		18,948		46,785
Royal Bank of Scotland	Call- OTC 2-Year Interest Rate Swap	Pay	4.750	%	12/15/08		10,200,000		34,956		90,215
Royal Bank of Scotland	Call- OTC 2-Year Interest Rate Swap	Pay	5.000	%	12/15/08		16,100,000		60,531		183,147
Lehman Brothers	Call- OTC 2-Year Interest Rate Swap	Pay	5.300	%	08/03/09		16,100,000		141,881		220,443
								$	444,293	$	830,607

Options on Exchange-Traded Futures Contracts

Counterparty	Description	Exercise Price		Expiration Date	Numbers of Contracts		Cost		Value
Merrill Lynch	Put- CME Eurodollar Futures (12/07)	$	91.75	12/17/07		39	$	370	$	244
Merrill Lynch	Put- CME Eurodollar Futures (12/07)		92.25	12/17/07		185		1,757		1,156
Merrill Lynch	Put- CME Eurodollar Futures (03/08)		91.50	03/17/08		20		190		125
Merrill Lynch	Put- CME Eurodollar Futures (03/08)		91.75	03/17/08		70		665		437
Merrill Lynch	Put- CME Eurodollar Futures (03/08)		93.00	03/17/08		9		85		56
Merrill Lynch	Put- CME Eurodollar Futures (06/08)		92.50	06/16/08		46		437		287
Merrill Lynch	Put- CME Eurodollar Futures (06/08)		92.75	06/16/08		40		380		250
Merrill Lynch	Put- CME Eurodollar Futures (06/08)		93.00	06/16/08		172		1,634		1,075
Merrill Lynch	Put- CME Eurodollar Futures (09/08)		92.50	09/15/08		9		86		56
							$	5,604	$	3,686

Options on Securities

Counterparty	Description	Strike Price		Expiration Date	Notional Amount		Cost		Value
Wachovia	Put- OTC Fannie Mae 5.000%, due 10/12/37	$	83.00	10/04/07	$	4,000,000	$	469	$	24
Merrill Lynch	Put- OTC Fannie Mae 5.500%, due 10/13/37		86.00	10/04/07		11,000,000		1,289		165
							$	1,758	$	189

Foreign Currency Options

Counterparty	Description	Exercise Price		Expiration Date	Notional Amount		Cost		Value
Citigroup	Call- OTC Japanese yen versus U.S. dollar	JPY	121.00	01/18/08	$	400,000	$	3,988	$	787
Morgan Stanley	Call- OTC U.S. dollar versus Euro	$	1.36	05/21/08	EUR	1,300,000		38,413		10,831
Morgan Stanley	Put- OTC U.S. dollar versus Euro		1.36	05/21/08		1,300,000		38,413		105,314
Credit Suisse	Call- OTC Japanese yen versus U.S. dollar	JPY	103.80	03/17/10	$	500,000		21,781		27,295
Credit Suisse	Put- OTC Japanese yen versus U.S. dollar		103.80	03/17/10		500,000		21,781		19,770
Royal Bank of Scotland	Call- OTC Japanese yen versus U.S. dollar		105.40	03/31/10		1,000,000		41,925		46,219
Royal Bank of Scotland	Put- OTC Japanese yen versus U.S. dollar		105.40	03/31/10		1,000,000		41,925		45,861
Morgan Stanley	Call- OTC U.S. dollar versus Euro	$	1.38	06/03/10	EUR	1,100,000		52,712		36,407
Morgan Stanley	Put- OTC U.S. dollar versus Euro		1.38	06/03/10		1,100,000		52,712		95,115
							$	313,650	$	387,599

(f) Transactions in written options for the period ended September 30, 2007 were as follows:

	Number of Contracts			Premium
Outstanding, March 31, 2007		39,700,035		$	431,744
Call Options Written		30,100,142			380,017
Put Options Written		1,200,000			9,200
Call Options Expired		(36,600,124	)		(359,883	)
Outstanding, September 30, 2007		34,400,053		$	461,078

See Notes to Financial Statements A-32 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2007 (Unaudited)

(g) Premiums received and value of written options outstanding as of September 30, 2007:

Credit Default Swaptions

Counterparty	Description	Buy/Sell Protection (1)	Exercise Rate		Expiration Date	Notional Amount		Premium		Value
Credit Suisse	Call - OTC Dow Jones N.A. HVOL Index	Buy	1.000	%	11/20/07	$	800,000	$	2,560	$	2,560
Credit Suisse	Put - OTC Dow Jones N.A. HVOL Index	Sell	1.700	%	11/20/07		800,000		2,400		2,400
Lehman Brothers	Put - OTC Dow Jones N.A. HY8 Index	Sell	0.910	%	12/20/07		400,000		6,800		1,643
Lehman Brothers	Call - OTC Dow Jones N.A. HY8 Index	Buy	0.990	%	12/20/07		400,000		3,200		4,232
								$	14,960	$	10,835

⁽¹⁾ If the Fund is the seller of protection and a credit default event occurs, as defined under the terms of that particular swap agreement, the Fund will pay to the buyer of the protection, an amount up to the notional value of the swap and in certain instances, take delivery of the security. As a buyer of protection, the Fund will generally receive from the seller of protection an amount up to the notional amount of the swap if a credit event occurs.

Interest Rate Swaptions

Counterparty	Description	Pay/Receive Floating Rate Based on 3-Month USD-LIBOR	Exercise Rate		Expiration Date	Notional Amount		Premium		Value
Royal Bank of Scotland	Call - OTC 5-Year Interest Rate Swap	Receive	5.010	%	10/25/07	$	1,300,000	$	11,968	$	12,072
Lehman Brothers	Call - OTC 5-Year Interest Rate Swap	Receive	5.150	%	12/20/07		1,900,000		27,450		31,565
Barclays	Call - OTC 5-Year Interest Rate Swap	Receive	4.900	%	02/01/08		700,000		8,715		8,003
Royal Bank of Scotland	Call - OTC 5-Year Interest Rate Swap	Receive	5.100	%	02/01/08		1,300,000		15,600		21,351
Royal Bank of Scotland	Call - OTC 5-Year Interest Rate Swap	Receive	4.900	%	03/31/08		4,400,000		56,045		56,830
Royal Bank of Scotland	Call - OTC 5-Year Interest Rate Swap	Receive	4.950	%	03/31/08		2,000,000		24,600		28,061
Lehman Brothers	Call - OTC 5-Year Interest Rate Swap	Receive	4.950	%	09/26/08		2,300,000		18,530		37,065
Royal Bank of Scotland	Call - OTC 5-Year Interest Rate Swap	Receive	4.950	%	09/26/08		2,300,000		18,860		37,065
Royal Bank of Scotland	Call - OTC 7-Year Interest Rate Swap	Receive	5.000	%	12/15/08		3,400,000		34,457		63,425
Royal Bank of Scotland	Call - OTC 7-Year Interest Rate Swap	Receive	5.200	%	12/15/08		5,400,000		58,015		128,869
Lehman Brothers	Call - OTC 5-Year Interest Rate Swap	Receive	5.500	%	08/03/09		7,000,000		138,425		198,051
								$	412,665	$	622,357

Options on Exchange-Traded Futures Contracts

Counterparty	Description	Exercise Price		Expiration Date	Numbers of Contracts		Premium		Value
Citigroup	Call - CBOT U.S. Treasury 5-Year Note Futures	$	107.00	11/20/07		53	$	33,453	$	38,094

(h) Swap agreements outstanding as of September 30, 2007:

Credit Default Swaps

Counterparty	Referenced Obligation	Buy/Sell Protection (1)	(Pay)/Receive Fixed Rate		Expiration Date		Notional Amount		Unrealized Appreciation (Depreciation)
Goldman Sachs	American International Group 5.600% due 10/18/16	Sell	0.055	%		03/20/08	$	900,000	($	312	)
UBS	The Goldman Sachs Group Inc 6.600% due 01/15/12	Sell	0.170	%		09/20/08		500,000		27
UBS	Morgan Stanley 6.600% due 04/01/12	Sell	0.190	%		09/20/08		500,000		(730	)
Lehman Brothers	Johnson & Johnson 3.800% due 05/15/13	Buy	(0.110	%)		12/20/08		100,000		(109	)
Lehman Brothers	The Home Depot Inc 5.375% due 04/01/06	Buy	(0.120	%)		12/20/08		100,000		96
Citigroup	Wal-Mart Stores Inc 3.375% due 10/01/08	Buy	(0.140	%)		12/20/08		100,000		(109	)
Barclays	Eli Lilly & Co 6.000% due 03/15/12	Buy	(0.160	%)		12/20/08		100,000		(170	)
Morgan Stanley	Emerson Electric Co 4.625% due 10/15/12	Buy	(0.210	%)		12/20/08		100,000		(194	)
Merrill Lynch	Gannett Co Inc 6.375% due 04/01/12	Buy	(0.220	%)		12/20/08		100,000		(73	)
Morgan Stanley	The Allstate Corp 6.125% due 02/15/12	Buy	(0.260	%)		12/20/08		100,000		(133	)
Citigroup	Eaton Corp 5.750% due 07/15/12	Buy	(0.280	%)		12/20/08		100,000		(242	)
Barclays	FedEx Corp 7.250% due 02/15/11	Buy	(0.290	%)		12/20/08		100,000		(230	)
Lehman Brothers	Whirlpool Corp 8.600% due 05/01/10	Buy	(0.290	%)		12/20/08		100,000		(291	)
Merrill Lynch	Ingersoll-Rand Co Ltd 6.480% due 06/01/25	Buy	(0.320	%)		12/20/08		100,000		(291	)
Royal Bank of Scotland	Republic of Indonesia 6.750% due 03/10/14	Sell	0.400	%		12/20/08		200,000		(389	)
Barclays	Ukraine Government Bond 7.650% due 06/11/13	Sell	0.710	%		12/20/08		100,000		(106	)
Morgan Stanley	Glitnir Banki HF 5.618% due 04/20/10	Buy	(0.170	%)		06/20/10		100,000		1,519
Morgan Stanley	Dow Jones CDX NA EM3 Index	Sell	2.100	%		06/20/10		400,000		24,422
JPMorgan Chase	Health Care Properties 5.950% due 09/15/11	Buy	(0.460	%)		09/20/11		900,000		9,967
Morgan Stanley	Dow Jones CDX NA IG8 Index	Buy	(0.170	%)		06/20/12		4,800,000		(17,587	)

See Notes to Financial Statements A-33 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2007 (Unaudited)

Counterparty	Referenced Obligation	Buy/Sell Protection (1)	(Pay)/Receive Fixed Rate		Expiration Date		Notional Amount		Unrealized Appreciation (Depreciation)
Barclays	Dow Jones CDX NA HY-8 Index	Sell	0.483	%		06/20/12	$	800,000	($	3,298	)
Citigroup	Noble Corp 5.875% due 06/01/13	Buy	(0.520	%)		06/20/12		300,000		(1,485	)
Citigroup	Dow Jones CDX NA HY-8 Index	Sell	1.841	%		06/20/12		150,000		138
Citigroup	Dow Jones CDX NA HY-8 Index	Sell	2.092	%		06/20/12		700,000		9,714
Lehman Brothers	Dow Jones CDX NA HY-8 Index	Buy	(2.750	%)		06/20/12		300,000		(1,242	)
Goldman Sachs	Dow Jones CDX NA HY-8 Index	Buy	(3.228	%)		06/20/12		310,000		(20,971	)
BNP Paribas	The Goldman Sachs Group Inc 6.600% due 01/15/12	Sell	0.820	%		09/20/12		100,000		1,674
Citigroup	The Goldman Sachs Group Inc 6.600% due 01/15/12	Sell	0.920	%		09/20/12		100,000		2,117
Royal Bank of Scotland	Merrill Lynch Co 5.000% due 01/15/15	Sell	0.920	%		09/20/12		100,000		1,415
Morgan Stanley	Dow Jones CDX NA IG5 Index	Buy	(0.143	%)		12/20/12		1,300,000		9,889
Lehman Brothers	Kohls Corp 6.300% due 03/01/11	Buy	(0.440	%)		12/20/12		600,000		(561	)
Deutsche Bank	Dow Jones CDX NA XO9 Index	Sell	2.450	%		12/20/12		400,000		1,947
Morgan Stanley	Dow Jones CDX NA IG5 Index	Sell	0.458	%		12/20/15		900,000		(9,043	)
Deutsche Bank	Dow Jones ITRAXX6 NA HI4 Index	Buy	(0.850	%)		12/20/16	EUR	800,000		1,459
HSBC	Dow Jones ITRAXX6 NA HI4 Index	Buy	(0.850	%)		12/20/16		800,000		1,501
Goldman Sachs	Transocean Inc 7.375% due 04/15/18	Buy	(0.540	%)		06/20/17	$	300,000		2,100
Lehman Brothers	Safeway Inc 5.800% due 08/15/12	Buy	(0.730	%)		06/20/17		1,000,000		(9,055	)
UBS	Weyerhaeuser Co 6.750% due 03/15/12	Buy	(0.960	%)		06/20/17		100,000		818
Deutsche Bank	Reynolds America Inc 7.625% due 06/01/16	Sell	1.280	%		06/20/17		200,000		(1,506	)
Goldman Sachs	Trinity 2005-1A B 7.320% due 03/08/40	Buy	(2.050	%)		03/08/40		1,000,000		483,480
									$	484,156

⁽¹⁾ If the Fund is the seller of protection and a credit default event occurs, as defined under the terms of that particular swap agreement, the Fund will pay to the buyer of the protection, an amount up to the notional value of the swap and in certain instances, take delivery of the security. As a buyer of protection, the Fund will generally receive from the seller of protection an amount up to the notional amount of the swap if a credit event occurs.

Interest Rate Swaps

Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate		Expiration Date		Notional Amount		Unrealized Appreciation (Depreciation)
Deutsche Bank	6-Month GBP-LIBOR	Pay	6.000	%		03/20/09	GBP	3,500,000	$	43,276
Citigroup	28-Day Mexico Interbank TIIE Banxico	Pay	7.910	%		05/14/09	MXN	16,000,000		(1,483	)
Morgan Stanley	28-Day Mexico Interbank TIIE Banxico	Pay	7.910	%		05/14/09		23,000,000		(2,272	)
UBS	3-Month USD-LIBOR	Pay	5.000	%		06/18/09	$	11,300,000		88,897
Royal Bank of Scotland	6-Month GBP-LIBOR	Pay	6.000	%		06/19/09	GBP	100,000		1,220
Goldman Sachs	6-Month EUR-LIBOR	Pay	4.000	%		09/19/09	EUR	3,600,000		(16,080	)
Barclays	3-Month USD-LIBOR	Pay	5.000	%		12/19/09	$	12,100,000		74,038
Deutsche Bank	3-Month USD-LIBOR	Pay	5.000	%		12/19/09		9,800,000		145,358
Lehman Brothers	3-Month USD-LIBOR	Pay	5.000	%		12/19/09		1,700,000		28,360
Lehman Brothers	6-Month EUR-LIBOR	Pay	4.500	%		03/19/10	EUR	3,900,000		(3,089	)
Deutsche Bank	6-Month Australian Bank Bill	Pay	7.000	%		06/15/10	AUD	6,600,000		(15,375	)
Morgan Stanley	6-Month Australian Bank Bill	Pay	7.000	%		06/15/10		3,400,000		(3,698	)
Royal Bank of Scotland	6-Month GBP-LIBOR	Pay	5.000	%		09/15/10	GBP	300,000		(2,205	)
Barclays	6-Month EUR-LIBOR	Receive	4.000	%		12/15/11	EUR	5,700,000		97,317
Morgan Stanley	BRL - CDI Compounded	Pay	10.115	%		01/02/12	BRL	3,100,000		(1,042	)
Goldman Sachs	BRL - CDI Compounded	Pay	10.150	%		01/02/12		6,100,000		(92,984	)
Barclays	BRL - CDI Compounded	Pay	10.680	%		01/02/12		5,600,000		7,378
Barclays	France CPI Excluding Tobacco	Pay	1.948	%		03/15/12	EUR	400,000		(6,914	)
Lehman Brothers	France CPI Excluding Tobacco	Pay	1.965	%		03/15/12		100,000		(428	)
Goldman Sachs	France CPI Excluding Tobacco	Pay	1.995	%		03/15/12		300,000		(1,071	)
Royal Bank of Scotland	France CPI Excluding Tobacco	Pay	1.955	%		03/28/12		100,000		(721	)
Royal Bank of Scotland	France CPI Excluding Tobacco	Pay	1.950	%		03/30/12	EUR	100,000		(775	)
Goldman Sachs	France CPI Excluding Tobacco	Pay	1.960	%		03/30/12		100,000		(672	)
Barclays	France CPI Excluding Tobacco	Pay	1.960	%		04/05/12		100,000		(779	)
BNP Paribas	France CPI Excluding Tobacco	Pay	1.940	%		04/10/12		100,000		(881	)
Royal Bank of Scotland	France CPI Excluding Tobacco	Pay	1.940	%		04/10/12		100,000		(959	)
Barclays	France CPI Excluding Tobacco	Pay	1.980	%		04/30/12		100,000		(825	)
Citigroup	6-Month EUR-LIBOR	Pay	4.800	%		07/11/12		3,800,000		62,298
Credit Suisse	3-Month USD-LIBOR	Pay	5.000	%		12/19/12	$	4,100,000		46,981
Deutsche Bank	3-Month USD-LIBOR	Pay	5.000	%		12/19/12		5,700,000		135,140
Royal Bank of Scotland	3-Month USD-LIBOR	Pay	5.000	%		12/19/12		3,700,000		28,546
Lehman Brothers	6-Month GBP-LIBOR	Pay	5.500	%		03/20/13	GBP	600,000		242
Barclays	6-Month EUR-LIBOR	Receive	4.000	%		12/15/14	EUR	1,000,000		32,438
Deutsche Bank	6-Month EUR-LIBOR	Receive	4.000	%		12/15/14		200,000		5,678
HSBC	6-Month EUR-LIBOR	Receive	4.000	%		12/15/14		2,500,000		70,977
Deutsche Bank	3-Month USD-LIBOR	Pay	5.000	%		12/19/14	$	4,400,000		96,398
Morgan Stanley	3-Month USD-LIBOR	Pay	5.000	%		12/19/14		2,600,000		1,977
Royal Bank of Scotland	3-Month USD-LIBOR	Pay	5.000	%		12/19/14		4,700,000		16,404

See Notes to Financial Statements A-34 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL MANAGED BOND FUND
Schedule of Investments (Continued)
September 30, 2007 (Unaudited)

Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate		Expiration Date		Notional Amount		Unrealized Appreciation (Depreciation)
Deutsche Bank	6-Month GBP-LIBOR	Pay	5.000	%		09/15/15	GBP	200,000	($	14,154	)
Goldman Sachs	6-Month GBP-LIBOR	Pay	5.000	%		09/15/15		300,000		(20,777	)
Citigroup	28-Day Mexico Interbank TIIE Banxico	Pay	8.720	%		09/05/16	MXN	1,300,000		(232	)
Merrill Lynch	28-Day Mexico Interbank TIIE Banxico	Pay	8.720	%		09/05/16		2,600,000		(2,061	)
Citigroup	28-Day Mexico Interbank TIIE Banxico	Pay	8.170	%		11/04/16		200,000		122
Goldman Sachs	28-Day Mexico Interbank TIIE Banxico	Pay	8.170	%		11/04/16		7,900,000		(17,410	)
Morgan Stanley	28-Day Mexico Interbank TIIE Banxico	Pay	8.170	%		11/04/16		2,700,000		512
Goldman Sachs	6-Month GBP-LIBOR	Pay	5.000	%		09/20/17	GBP	900,000		47,743
Morgan Stanley	3-Month USD-LIBOR	Receive	5.000	%		12/19/17	$	700,000		(25,661	)
Deutsche Bank	3-Month USD-LIBOR	Pay	5.000	%		12/19/22		1,000,000		15,927
Barclays	6-Month GBP-LIBOR	Receive	4.000	%		12/15/35	GBP	200,000		19,490
Deutsche Bank	6-Month GBP-LIBOR	Receive	4.000	%		12/15/35		1,300,000		28,733
Goldman Sachs	6-Month GBP-LIBOR	Receive	4.000	%		12/15/35		400,000		28,442
Deutsche Bank	6-Month GBP-LIBOR	Receive	4.500	%		12/15/35		300,000		(4,823	)
Deutsche Bank	3-Month USD-LIBOR	Pay	5.000	%		12/15/35	$	1,800,000		(65,205	)
Lehman Brothers	3-Month USD-LIBOR	Pay	5.000	%		12/19/37		4,900,000		66,664
									$	887,980

(i) Investments sold short outstanding as of September 30, 2007:

Description	Principal Amount		Value
U.S. Treasury Bonds
4.500% due 05/15/17	$	4,200,000	$	4,177,690
4.750% due 08/15/17		2,200,000		2,230,252
U.S. Treasury Notes
4.130% due 08/31/12		1,000,000		996,251
4.500% due 02/15/16		400,000		400,187
4.630% due 02/15/17		4,000,000		4,019,688
Total Investments sold short (Proceeds $11,831,654)			$	11,824,068

See Notes to Financial Statements A-35 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments
September 30, 2007 (Unaudited)

	Principal Amount		Value
CORPORATE BONDS & NOTES - 3.52%
Consumer Discretionary - 0.10%
CSC Holdings Inc 7.875% due 12/15/07	$	100,000	$	100,380
Energy - 0.47%
Rockies Express Pipeline Co 6.448% due 08/20/09 ~ §		500,000		499,877
Financial Services - 2.34%
American Express Bank FSB 6.000% due 09/13/17		300,000		299,042
American Express Centurion Bank 6.000% due 09/13/17		200,000		199,361
Bank of America NA 5.505% due 02/27/09 §		500,000		498,769
Barclays Bank PLC (United Kingdom) 5.450% due 09/12/12		700,000		705,293
Ford Motor Credit Co LLC 7.875% due 06/15/10		500,000		489,053
General Electric Capital Corp 5.744% due 12/12/08 §		100,000		99,836
Rabobank Nederland (Netherlands) 5.380% due 01/15/09 ~ §		100,000		100,077
Travelers Property Casualty Corp 3.750% due 03/15/08		100,000		99,134
				2,490,565
Integrated Oils - 0.24%
Pemex Project Funding Master Trust 9.250% due 03/30/18		200,000		252,100
Utilities - 0.37%
BellSouth Corp 4.240% due 04/26/08 ~		400,000		397,730
Total Corporate Bonds & Notes (Cost $3,718,733)				3,740,652
CONVERTIBLE CORPORATE BONDS - 0.82%
Energy - 0.82%
Chesapeake Energy Corp 2.500% due 05/15/37		850,000		872,313
Total Convertible Corporate Bonds (Cost $835,448)				872,313
MORTGAGE-BACKED SECURITIES - 81.82%
Collateralized Mortgage Obligations - 1.74%
Bear Stearns Adjustable Rate Mortgage Trust
4.125% due 03/25/35 “ §		379,553		373,601
4.550% due 08/25/35 “ §		195,900		195,462
Citigroup Mortgage Loan Trust Inc
4.248% due 08/25/35 “ §		79,919		78,068
4.748% due 08/25/35 “ §		121,720		120,541

Countrywide Home Loan Mortgage Pass-Through Trust
5.471% due 06/25/35 ~ “ §	59,532	58,313
Freddie Mac 5.983% due 02/15/19 “ §	873,072	870,821
GSR Mortgage Loan Trust 4.540% due 09/25/35 “ §	147,706	147,541
		1,844,347
Fannie Mae - 78.73%
5.500% due 10/01/35 - 10/11/37 “ ±	76,481,648	74,918,678
6.000% due 09/01/36 - 10/11/37 “ ±	8,769,974	8,782,417
		83,701,095
Freddie Mac - 1.35%
5.000% due 08/01/37 - 09/01/37 “ ±	1,499,850	1,430,901
Total Mortgage-Backed Securities (Cost $86,730,810)		86,976,343
ASSET-BACKED SECURITIES - 0.04%
Freddie Mac Structured Pass-Through Securities 5.411% due 09/25/31 “ §	4,741	4,742
Lehman XS Trust 5.211% due 07/25/46 “ §	35,790	35,662
Merrill Lynch Mortgage Investors Inc 5.211% due 01/25/37 “ §	3,849	3,848
Total Asset-Backed Securities (Cost $44,382)		44,252
U.S. TREASURY OBLIGATIONS - 101.32%
U.S. Treasury Inflation Protected Securities - 101.03%
0.875% due 04/15/10 ^	7,145,120	6,914,122
1.625% due 01/15/15 ^	4,472,772	4,280,586
1.875% due 07/15/13 ^	1,247,587	1,228,095
1.875% due 07/15/15 ^	9,525,314	9,284,781
2.000% due 04/15/12 ^	3,490,236	3,465,968
2.000% due 01/15/14 ^	7,379,558	7,282,993
2.000% due 07/15/14 ^	110,401	109,070
2.000% due 01/15/16 ^	4,303,032	4,207,561
2.000% due 01/15/26 ^	7,342,509	7,024,916
2.375% due 04/15/11 ^	5,245,830	5,284,736
2.375% due 01/15/17 ^	11,672,109	11,759,662
2.375% due 01/15/25 ^	9,199,915	9,295,202
2.375% due 01/15/27 ^	3,821,841	3,869,618
2.500% due 07/15/16 ^	5,260,497	5,359,957
2.625% due 07/15/17 ^	1,507,590	1,554,467
3.000% due 07/15/12 ^	5,358,248	5,578,439
3.375% due 04/15/32 ^	293,390	358,440
3.500% due 01/15/11 ^	3,829,920	3,998,080
3.625% due 04/15/28 ^	2,022,019	2,463,704
3.875% due 01/15/09 ^	1,651,208	1,685,523
3.875% due 04/15/29 ^	7,412,652	9,415,232
4.250% due 01/15/10 ^	2,847,653	2,983,142
		107,404,294
U.S. Treasury Notes - 0.29%
4.750% due 08/15/17	300,000	304,125
Total U.S. Treasury Obligations (Cost $107,237,105)		107,708,419

See Notes to Financial Statements A-36 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2007 (Unaudited)

	Principal Amount		Value
FOREIGN GOVERNMENT BONDS & NOTES - 0.50%
United Kingdom Gilt Inflation Linked Bond (United Kingdom)
2.500% due 05/20/09 ^	GBP	100,000	$	536,767
Total Foreign Government Bonds & Notes (Cost $500,642)				536,767
MUNICIPAL BONDS - 0.19%
Tobacco Settlement Finance Authority of WV ‘A’ 7.467% due 06/01/47	$	100,000		98,449
Tobacco Settlement Financing Corp RI ‘A’ 6.000% due 06/01/23		100,000		101,776
Total Municipal Bonds (Cost $183,632)				200,225
PURCHASED OPTIONS - 0.13%
(See Note (f) to Notes to Schedule of Investments) (Cost $106,004)				137,396
SHORT-TERM INVESTMENTS - 1.28%
U.S. Treasury Bills - 0.59%
3.855% due 12/13/07 ‡		580,000		575,721
4.615% due 11/29/07 ‡		55,000		54,673
				630,394

	Shares
Money Market Funds - 0.69%
BlackRock Liquidity Funds Institutional TempCash		367,452		367,452
BlackRock Liquidity Funds Institutional TempFund		367,452		367,452
				734,904
Total Short-Term Investments (Cost $1,365,019)				1,365,298
TOTAL INVESTMENTS - 189.62% (Cost $200,721,775)				201,581,665
OTHER ASSETS & LIABILITIES, NET - (89.62%)				(95,273,518	)
NET ASSETS - 100.00%			$	106,308,147

Notes to Schedule of Investments

(a) As of September 30, 2007, the Fund was diversified as a percentage of net assets as follows:

U.S. Treasury Obligations	101.32	%
Mortgage-Backed Securities	81.82	%
Corporate Bonds & Notes	3.52	%
Short-Term Investments	1.28	%
Convertible Corporate Bonds	0.82	%
Foreign Government Bonds & Notes	0.50	%
Municipal Bonds	0.19	%
Purchased Options	0.13	%
Asset-Backed Securities	0.04	%
	189.62	%
Other Assets & Liabilities, Net	(89.62	) %
	100.00	%

(b) Short-term securities reflect either the stated coupon rate or the annualized effective yield on the date of purchase for discounted securities.

(c) Securities with an aggregate market value of $630,394 were segregated with the broker(s)/custodian to cover margin requirements for the following open futures contracts as of September 30, 2007:

Long Futures Outstanding	Number of Contracts	Notional Amount		Net Unrealized Appreciation (Depreciation)
3-Month Euribor (12/08)	30	EUR	30,000,000	$	23,760
3-Month Euribor (03/09)	3		3,000,000		3,672
3-Month Euribor (06/09)	2		2,000,000		2,371
Eurodollar (12/08)	28	$	28,000,000		27,725
Eurodollar (03/09)	46		46,000,000		65,250
Eurodollar (06/09)	30		30,000,000		30,925
Eurodollar (09/09)	18		18,000,000		4,700
United Kingdom 90-Day LIBOR Sterling Interest Rate (03/08)	25	GBP	12,500,000		(7,545	)
United Kingdom 90-Day LIBOR Sterling Interest Rate (09/08)	27		13,500,000		2,123
United Kingdom 90-Day LIBOR Sterling Interest Rate (06/08)	53		26,500,000		15,191
United Kingdom 90-Day LIBOR Sterling Interest Rate (06/09)	1		500,000		51

Short Futures Outstanding
3-Month Euribor (09/08)	7	EUR	7,000,000		1,872
Euro-Bund 10-Year Notes (12/07)	7		700,000		(3,822	)
Eurodollar (12/07)	16	$	16,000,000		4,000
Eurodollar (03/08)	12		12,000,000		(5,963	)
Eurodollar (06/08)	17		17,000,000		(15,088	)
Eurodollar (09/08)	7		7,000,000		(8,150	)
U.S. Treasury 5-Year Notes (12/07)	121		12,100,000		(54,828	)
U.S. Treasury 10-Year Notes (12/07)	86		8,600,000		(12,312	)
U.S. Treasury 30-Year Bonds (12/07)	115		11,500,000		13,094
				$	87,026

See Notes to Financial Statements A-37 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2007 (Unaudited)

(d) Investment sold short outstanding as of September 30, 2007:

Description	Principal Amount		Value
Fannie Mae 5.500% due 11/13/37	$	54,500,000	$	53,350,377
Freddie Mac 5.000% due 10/11/37		1,500,000		1,430,859
U.S. Treasury Bonds 4.750% due 08/15/17		800,000		811,001
U.S. Treasury Notes
4.130% due 08/31/12		700,000		697,375
4.250% due 11/15/13		600,000		598,453
Total Investments sold short (Proceeds $56,923,458)			$	56,888,065

(e) Forward foreign currency contracts outstanding as of September 30, 2007 were as follows:

Contracts to Buy or to Sell	Currency		Principal Amount Covered by Contracts		Expiration		Net Unrealized Appreciation (Depreciation)
Buy		BRL		2,602,815		10/07	$	42,473
Sell		BRL		2,602,815		10/07		(92,722	)
Buy		BRL		24,316		11/07		209
Buy		BRL		851,026		03/08		11,853
Buy		BRL		2,602,815		07/08		80,057
Sell		CHF		85,000		12/07		(2,587	)
Buy		CNY		6,507,744		01/08		10,912
Sell		CNY		6,507,744		01/08		(831	)
Buy		CNY		3,586,143		03/08		2,349
Sell		CNY		3,586,143		03/08		(1,173	)
Buy		CNY		5,916,844		03/09		18,975
Sell		CNY		5,916,844		03/09		(8,916	)
Sell		EUR		270,000		10/07		(17,754	)
Sell		GBP		462,000		11/07		(15,378	)
Buy		JPY		125,476,000		10/07		7,917
Sell		JPY		126,834,000		10/07		1,249
Buy		KRW		24,873,500		01/08		59
Buy		KRW		302,999,950		05/08		8,303
Buy		MXN		11,296,411		03/08		(12,766	)
Buy		MXN		17,600,851		07/08		4,103
Buy		MYR		428,498		05/08		(146	)
Buy		PLN		999,197		07/08		13,313
Buy		RUB		13,923,678		01/08		11,845
Buy		RUB		454,950		07/08		129
Buy		SGD		519,163		10/07		7,256
Sell		SGD		499,636		10/07		(6,976	)
Buy		SGD		24,315		02/08		184
Buy		SGD		493,694		05/08		6,899
							$	68,836

(f) Purchased options outstanding as of September 30, 2007:

Interest Rate Swaptions

Counterparty	Description	Pay/Receive Floating Rate Based on 3-Month USD-LIBOR	Exercise Rate		Expiration Date		Notional Amount		Cost		Value
Royal Bank of Scotland	Call - OTC 2-Year Interest Rate Swap	Pay	4.750	%	03/31/08	$	3,000,000	$	16,800	$	23,682
Royal Bank of Scotland	Call - OTC 2-Year Interest Rate Swap	Pay	4.750	%	09/26/08		1,000,000		5,050		8,827
								$	21,850	$	32,509

Foreign Currency Options

Counterparty	Description		Exercise Rate	Expiration Date	Notional Amount			Cost		Value
Royal Bank of Scotland	Call - OTC U.S dollar versus Euro	$	1.35	06/26/08	EUR	500,000	$	15,735	$	41,838
Royal Bank of Scotland	Put - OTC U.S dollar versus Euro		1.35	06/26/08		500,000		15,735		4,674
Morgan Stanley	Call - OTC U.S dollar versus Euro		1.39	07/08/10		500,000		26,342		38,784
Morgan Stanley	Put - OTC U.S dollar versus Euro		1.39	07/08/10		500,000		26,342		19,591
							$	84,154	$	104,887

See Notes to Financial Statements A-38 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2007 (Unaudited)

(g) Transactions in written options for the period ended September 30, 2007 were as follows:

	Number of Contracts			Premium
Outstanding, March 31, 2007		1,000,024		$	18,717
Call Options Written		3,000,057			86,716
Put Options Written		2,000,020			72,996
Call Options Expired		(1,000,049	)		(22,496	)
Put Options Expired		(23	)		(6,191	)
Outstanding, September 30, 2007		5,000,029		$	149,742

(h) Premiums received and value of written options outstanding as of September 30, 2007:

Interest Rate Swaptions

Counterparty	Description	Pay/Receive Floating Rate Based on 3-Month USD-LIBOR	Exercise Rate		Expiration Date		Notional Amount		Premium		Value
Royal Bank of Scotland	Call - OTC 5-Year Interest Rate Swap	Receive	4.950	%	03/31/08	$	1,000,000	$	12,300	$	14,031
Lehman Brothers	Call - OTC 7-Year Interest Rate Swap	Receive	5.365	%	09/20/10		1,000,000		27,250		29,279
Lehman Brothers	Put - OTC 7-Year Interest Rate Swap	Pay	5.365	%	09/20/10		1,000,000		37,600		35,312
Royal Bank of Scotland	Call - OTC 7-Year Interest Rate Swap	Receive	5.365	%	09/20/10		1,000,000		31,445		29,279
Royal Bank of Scotland	Put - OTC 7-Year Interest Rate Swap	Pay	5.365	%	09/20/10		1,000,000		31,445		35,312
								$	140,040	$	143,213

Options on Exchange-Traded Futures Contracts

Counterparty	Description	Exercise Price		Expiration Date		Number of Contracts		Premium		Value
Citigroup	Put - CBOT U.S. Treasury 10-Year Note Futures	$	107.00		11/20/07		9	$	1,658	$	2,102
JPMorgan Chase	Call - CBOT U.S. Treasury 10-Year Note Futures		111.00		11/20/07		11		5,683		4,125
Citigroup	Call - CBOT U.S. Treasury 10-Year Note Futures		112.00		11/20/07		9		2,361		1,359
								$	9,702	$	7,586

(i) Swap agreements outstanding as of September 30, 2007:

Credit Default Swaps

Counterparty	Referenced Obligation	Buy/Sell Protection (1)	(Pay)/Receive Fixed Rate			Expiration Date		Notional Amount		Unrealized Appreciation (Depreciation)
Goldman Sachs	Ford Motor Credit Co 7.000% due 10/01/13	Sell		1.400	%	09/20/08	$	100,000	($	1,282	)
Lehman Brothers	General Motors Acceptance Corp 6.875% due 08/28/12	Sell		1.425	%	09/20/08		100,000		(1,517	)
Goldman Sachs	General Motors Acceptance Corp 6.875% due 08/28/12	Buy		(5.050	%)	09/20/08		500,000		(9,254	)
Royal Bank of Scotland	Republic of Indonesia 6.750% due 03/10/14	Sell		0.400	%	12/20/08		1,000,000		(1,943	)
Credit Suisse	Chesapeake Energy Corp 6.875% due 01/15/16	Sell		1.010	%	06/20/12		100,000		(348	)
Lehman Brothers	Dow Jones CDX NA HY-8 Index	Sell		2.300	%	06/20/12		200,000		4,522
Merrill Lynch	Dow Jones CDX NA HY-8 Index	Sell		2.460	%	06/20/12		120,000		3,520
Merrill Lynch	Dow Jones CDX NA HY-8 Index	Sell		2.750	%	06/20/12		500,000		11,694
Morgan Stanley	General Motors Acceptance Corp 6.875% due 08/28/12	Sell		6.850	%	06/20/12		100,000		12,005
Royal Bank of Scotland	Lehman Brothers Holding Inc 6.625% due 01/18/12	Sell		0.660	%	09/20/12		100,000		(780	)
Citigroup	The Bear Stearns Cos Inc 5.300% due 10/30/15	Sell		0.720	%	09/20/12		100,000		(778	)
Morgan Stanley	The Goldman Sachs Group Inc 6.600% due 01/15/12	Sell		0.750	%	09/20/12		100,000		1,365
Morgan Stanley	The Goldman Sachs Group Inc 6.600% due 01/15/12	Sell		0.800	%	09/20/12		100,000		1,586
Credit Suisse	Chesapeake Energy Corp 6.875% due 01/15/16	Sell		1.550	%	09/20/12		100,000		1,805
Goldman Sachs	General Motors Acceptance Corp 6.875% due 08/28/12	Sell		3.050	%	09/20/12		100,000		(1,012	)
Citigroup	RH Donnelley Holding Company 8.875% due 01/15/16	Sell		3.400	%	09/20/12		100,000		1,814
Morgan Stanley	Ford Motor Credit Co 7.000% due 10/01/13	Sell		3.800	%	09/20/12		100,000		(412	)
Citigroup	General Motors Acceptance Corp 6.875% due 08/28/12	Buy		(5.000	%)	09/20/12		100,000		(5,859	)
Goldman Sachs	General Motors Acceptance Corp 6.875% due 08/28/12	Sell		5.350	%	09/20/12		500,000		35,462
BNP Paribas	The Goldman Sachs Group Inc 6.600% due 01/15/12	Buy		(0.390	%)	12/20/12		100,000		276
									$	50,864

⁽¹⁾ If the Fund is the seller of protection and a credit default event occurs, as defined under the terms of that particular swap agreement, the Fund will pay to the buyer of the protection, an amount up to the notional value of the swap and in certain instances, take delivery of the security. As a buyer of protection, the Fund will generally receive from the seller of protection an amount up to the notional amount of the swap if a credit event occurs.

See Notes to Financial Statements A-39 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL INFLATION MANAGED FUND
Schedule of Investments (Continued)
September 30, 2007 (Unaudited)

Interest Rate Swaps

Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate		Expiration Date	Notional Amount		Unrealized Appreciation (Depreciation)
Morgan Stanley	6-Month JPY-LIBOR	Pay	1.000	%	03/18/09	JPY	300,000,000	$	2,895
Barclays	6-Month GBP-LIBOR	Pay	5.000	%	06/15/09	GBP	1,200,000		(14,997	)
UBS	3-Month USD-LIBOR	Pay	5.000	%	06/18/09	$	12,000,000		94,239
Barclays	6-Month Australian Bank Bill	Pay	7.000	%	12/15/09	AUD	800,000		(472	)
Morgan Stanley	6-Month Australian Bank Bill	Pay	7.000	%	12/15/09		1,600,000		(1,006	)
Barclays	3-Month USD-LIBOR	Pay	5.000	%	12/19/09	$	12,300,000		163,497
Deutsche Bank	3-Month USD-LIBOR	Pay	5.000	%	12/19/09		6,600,000		108,784
Goldman Sachs	3-Month USD-LIBOR	Pay	5.000	%	12/19/09		2,800,000		37,171
Citigroup	6-Month Australian Bank Bill	Pay	6.500	%	01/15/10	AUD	300,000		(2,223	)
Deutsche Bank	6-Month Australian Bank Bill	Pay	6.500	%	01/15/10		1,100,000		(7,885	)
Royal Bank of Canada	6-Month Australian Bank Bill	Pay	6.500	%	01/15/10		700,000		(4,873	)
Deutsche Bank	6-Month GBP-LIBOR	Pay	6.000	%	03/20/10	GBP	1,400,000		1,004
Deutsche Bank	6-Month Australian Bank Bill	Pay	7.000	%	06/15/10	AUD	5,200,000		(603	)
Credit Suisse	6-Month GBP-LIBOR	Pay	5.000	%	09/15/10	GBP	500,000		(4,568	)
Royal Bank of Scotland	6-Month GBP-LIBOR	Pay	5.000	%	09/15/10		1,000,000		(7,854	)
Barclays	France CPI Excluding Tobacco	Pay	2.103	%	10/15/10	EUR	500,000		10,212
UBS	France CPI Excluding Tobacco	Pay	2.146	%	10/15/10		100,000		2,266
JPMorgan Chase	France CPI Excluding Tobacco	Pay	2.261	%	07/14/11		500,000		12,802
JPMorgan Chase	France CPI Excluding Tobacco	Pay	2.028	%	10/15/11		200,000		1,697
UBS	France CPI Excluding Tobacco	Pay	2.095	%	10/15/11		300,000		4,329
Goldman Sachs	France CPI Excluding Tobacco	Pay	1.976	%	12/15/11		4,000,000		(1,895	)
BNP Paribas	France CPI Excluding Tobacco	Pay	1.988	%	12/15/11		1,000,000		(385	)
Morgan Stanley	BRL - CDI Compounded	Pay	10.115	%	01/02/12	BRL	400,000		(4,951	)
UBS	BRL - CDI Compounded	Pay	10.575	%	01/02/12		2,400,000		(27,546	)
Barclays	BRL - CDI Compounded	Pay	10.680	%	01/02/12		2,200,000		(3,700	)
Morgan Stanley	6-Month JPY-LIBOR	Pay	1.500	%	06/20/12	JPY	140,000,000		3,728
Barclays	3-Month USD-LIBOR	Pay	5.000	%	12/19/12	$	1,400,000		43,014
Lehman Brothers	3-Month USD-LIBOR	Pay	5.000	%	12/19/12		400,000		11,554
Barclays	3-Month USD-LIBOR	Receive	5.000	%	12/19/14		1,000,000		(6,175	)
Deutsche Bank	3-Month USD-LIBOR	Receive	5.000	%	12/19/14		300,000		(9,037	)
Goldman Sachs	6-Month GBP-LIBOR	Receive	5.000	%	09/15/15	GBP	300,000		9,187
UBS	Eurostat Eurozone HICP Excluding Tobacco	Receive	2.275	%	10/15/16	EUR	200,000		1,213
UBS	France CPI Excluding Tobacco	Pay	2.350	%	10/15/16		200,000		331
JPMorgan Chase	France CPI Excluding Tobacco	Pay	2.353	%	10/15/16		100,000		72
Citigroup	28-Day Mexico Interbank TIIE Banxico	Pay	8.170	%	11/04/16	MXN	11,200,000		(11,751	)
Goldman Sachs	28-Day Mexico Interbank TIIE Banxico	Pay	8.170	%	11/04/16		5,200,000		(4,732	)
Morgan Stanley	28-Day Mexico Interbank TIIE Banxico	Pay	8.170	%	11/04/16		2,100,000		(2,639	)
Merrill Lynch	28-Day Mexico Interbank TIIE Banxico	Pay	8.170	%	11/04/16		5,400,000		(5,297	)
Credit Suisse	6-Month EUR-LIBOR	Receive	4.000	%	06/15/17	EUR	500,000		37,177
Royal Bank of Scotland	3-Month Canadian Bank Bill	Receive	5.500	%	06/20/17	CAD	300,000		(4,939	)
Barclays	6-Month Australian Bank Bill	Receive	6.750	%	12/15/17	AUD	100,000		125
Morgan Stanley	6-Month Australian Bank Bill	Receive	6.750	%	12/15/17		200,000		328
Barclays	3-Month USD-LIBOR	Receive	5.000	%	12/19/17	$	1,300,000		(54,155	)
Credit Suisse	3-Month USD-LIBOR	Receive	5.000	%	12/19/17		400,000		(4,233	)
Deutsche Bank	3-Month USD-LIBOR	Receive	5.000	%	12/19/17		300,000		(12,481	)
Royal Bank of Scotland	3-Month USD-LIBOR	Receive	5.000	%	12/19/17		3,200,000		(80,414	)
UBS	3-Month USD-LIBOR	Receive	5.000	%	12/19/17		300,000		(14,350	)
Royal Bank of Scotland	United Kingdom RPI Index	Pay	3.440	%	09/10/27	GBP	100,000		(710	)
Barclays	6-Month GBP-LIBOR	Receive	4.000	%	12/15/35		400,000		28,743
Credit Suisse	6-Month GBP-LIBOR	Receive	4.000	%	12/15/35		200,000		14,487
HSBC	6-Month GBP-LIBOR	Receive	4.250	%	06/12/36		200,000		43,116
Deutsche Bank	3-Month USD-LIBOR	Pay	5.000	%	12/19/37	$	1,000,000		62,004
Royal Bank of Scotland	3-Month USD-LIBOR	Pay	5.000	%	12/19/37		1,000,000		65,744
								$	465,848

See Notes to Financial Statements A-40 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL COMSTOCK FUND
Schedule of Investments
September 30, 2007 (Unaudited)

	Shares		Value
COMMON STOCKS - 96.71%
Autos & Transportation - 0.72%
Southwest Airlines Co		54,300	$	803,640
Consumer Discretionary - 15.50%
Clear Channel Communications Inc		10,299		385,595
Kimberly-Clark Corp		24,100		1,693,266
Liberty Media Corp - Capital ‘A’ *		10,875		1,357,526
Liberty Media Corp - Interactive ‘A’ *		75,075		1,442,191
Lowe’s Cos Inc		19,200		537,984
News Corp ‘B’		44,800		1,047,872
The Home Depot Inc		12,600		408,744
Time Warner Inc		222,100		4,077,756
Viacom Inc ‘B’ *		89,150		3,474,176
Wal-Mart Stores Inc		65,800		2,872,170
				17,297,280
Consumer Staples - 12.83%
Altria Group Inc		24,700		1,717,391
Anheuser-Busch Cos Inc		18,890		944,311
Cadbury Schweppes PLC ADR (United Kingdom)		47,700		2,219,004
Kraft Foods Inc ‘A’		62,802		2,167,297
Sara Lee Corp		8,900		148,541
The Coca-Cola Co		63,800		3,666,586
The Procter & Gamble Co		16,600		1,167,644
Unilever NV ‘NY’ (Netherlands)		74,200		2,289,070
				14,319,844
Financial Services - 27.41%
Aflac Inc		11,800		673,072
American International Group Inc		19,800		1,339,470
Bank of America Corp		72,800		3,659,656
Barclays PLC ADR (United Kingdom)		3,100		150,722
Berkshire Hathaway Inc ‘B’ *		140		553,280
Citigroup Inc		102,500		4,783,675
Fannie Mae		7,800		474,318
Freddie Mac		21,200		1,251,012
Genworth Financial Inc ‘A’		13,400		411,782
JPMorgan Chase & Co		35,900		1,644,938
MBIA Inc		6,600		402,930
Merrill Lynch & Co Inc		19,200		1,368,576
MetLife Inc		15,500		1,080,815
The Bank of New York Mellon Corp		41,939		1,851,187
The Bear Stearns Cos Inc		3,000		368,430
The Chubb Corp		46,780		2,509,279
The Hartford Financial Services Group Inc		6,300		583,065
The PNC Financial Services Group Inc		10,400		708,240
The Travelers Cos Inc		11,086		558,069
The Western Union Co		21,200		444,564
Torchmark Corp		5,500		342,760
U.S. Bancorp		18,900		614,817
Wachovia Corp		62,456		3,132,168
Wells Fargo & Co		47,500		1,691,950
				30,598,775
Health Care - 18.23%
Abbott Laboratories		36,400		1,951,768
Boston Scientific Corp *		42,100		587,295
Bristol-Myers Squibb Co		94,200		2,714,844
Cardinal Health Inc		25,700		1,607,021
CVS Caremark Corp		49,000		1,941,870
Eli Lilly & Co		36,500		2,077,945
GlaxoSmithKline PLC ADR (United Kingdom)		25,500		1,356,600
Pfizer Inc		73,100		1,785,833
Roche Holding AG ADR (Switzerland)		3,800		343,340

Sanofi-Aventis ADR (France)		7,800	330,876
Schering-Plough Corp		82,600	2,612,638
Wyeth		68,200	3,038,310
			20,348,340
Materials & Processing - 7.45%
Alcoa Inc		21,300	833,256
E.I. du Pont de Nemours & Co		45,800	2,269,848
International Paper Co		111,458	3,997,999
Newmont Mining Corp		10,700	478,611
Rohm & Haas Co		13,300	740,411
			8,320,125
Multi-Industry - 1.89%
General Electric Co		51,000	2,111,400
Producer Durables - 0.24%
KLA-Tencor Corp		4,800	267,744
Technology - 5.23%
Cisco Systems Inc *	��	8,700	288,057
Computer Sciences Corp *		3,300	184,470
Dell Inc *		43,700	1,206,120
Hewlett-Packard Co		14,100	702,039
Intel Corp		20,700	535,302
International Business Machines Corp		11,900	1,401,820
Microsoft Corp		26,000	765,960
Telefonaktiebolaget LM Ericsson ADR (Sweden)		10,700	425,860
Texas Instruments Inc		8,900	325,651
			5,835,279
Utilities - 7.21%
AT&T Inc		36,600	1,548,546
Comcast Corp ‘A’ *		150,100	3,629,418
Verizon Communications Inc		64,700	2,864,916
			8,042,880
Total Common Stocks (Cost $98,838,368)			107,945,307

	Principal Amount
SHORT-TERM INVESTMENTS - 5.21%
U.S. Government Agency Issue - 5.20%
Federal Home Loan Bank 4.000% due 10/01/07	$	5,800,000	5,800,000

See Notes to Financial Statements A-41 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL COMSTOCK FUND
Schedule of Investments (Continued)
September 30, 2007 (Unaudited)

	Shares		Value
Money Market Funds - 0.01%
BlackRock Liquidity Funds Institutional TempCash	4,772	$	4,772
BlackRock Liquidity Funds Institutional TempFund	4,772		4,772
			9,544
Total Short-Term Investments (Cost $5,809,544)			5,809,544
TOTAL INVESTMENTS - 101.92% (Cost $104,647,912)			113,754,851
OTHER ASSETS & LIABILITIES, NET - (1.92%)			(2,139,256	)
NET ASSETS - 100.00%		$	111,615,595

Notes to Schedule of Investments

(a) As of September 30, 2007, the Fund was diversified as a percentage of net assets as follows:

Financial Services	27.41	%
Health Care	18.23	%
Consumer Discretionary	15.50	%
Consumer Staples	12.83	%
Materials & Processing	7.45	%
Utilities	7.21	%
Technology	5.23	%
Short-Term Investments	5.21	%
Multi-Industry	1.89	%
Autos & Transportation	0.72	%
Producer Durables	0.24	%
	101.92	%
Other Assets & Liabilities, Net	(1.92	)%
	100.00	%

(b) Short-term securities reflect either the stated coupon rate or the annualized effective yield on the date of purchase for discounted securities.

See Notes to Financial Statements A-42 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL MID-CAP GROWTH FUND
Schedule of Investments
September 30, 2007 (Unaudited)

	Shares		Value
COMMON STOCKS - 94.98%
Autos & Transportation - 7.78%
C.H. Robinson Worldwide Inc		41,679	$	2,262,753
Expeditors International of Washington Inc		38,531		1,822,516
Grupo Aeroportuario del Pacifico SA de CV ADR (Mexico)		22,335		1,219,491
UAL Corp *		25,911		1,205,639
				6,510,399
Consumer Discretionary - 36.33%
Abercrombie & Fitch Co ‘A’		29,116		2,349,661
Apollo Group Inc ‘A’ *		29,436		1,770,575
AutoZone Inc *		8,993		1,044,447
Baidu.com Inc ADR * (Cayman)		7,524		2,179,327
Chipotle Mexican Grill Inc ‘B’ *		9,617		1,029,019
Choice Hotels International Inc		18,694		704,203
ChoicePoint Inc *		31,489		1,194,063
Ctrip.com International Ltd ADR (Cayman)		20,356		1,054,441
Discovery Holding Co ‘A’ *		47,070		1,357,969
Focus Media Holding Ltd ADR * (Cayman)		19,418		1,126,632
Grupo Televisa SA ADR (Mexico)		72,375		1,749,304
Iron Mountain Inc *		39,312		1,198,230
Li & Fung Ltd + (Bermuda)		430,000		1,817,925
Monster Worldwide Inc *		40,486		1,378,953
NHN Corp * + (South Korea)		6,091		1,402,529
The Corporate Executive Board Co		32,258		2,394,834
Under Armour Inc ‘A’ *		14,412		862,126
Weight Watchers International Inc		13,734		790,529
Wendy’s International Inc		29,353		1,024,713
Wynn Resorts Ltd		25,294		3,985,323
				30,414,803
Energy - 2.16%
Southwestern Energy Co *		43,169		1,806,623
Financial Services - 14.74%
Alleghany Corp *		2,701		1,096,606
Brookfield Asset Management Inc ‘A’ (Canada)		30,949		1,191,537
Brown & Brown Inc		10,816		284,461
Calamos Asset Management Inc ‘A’		43,330		1,223,206
Global Payments Inc		27,884		1,233,030
InterContinentalExchange Inc *		8,982		1,364,366
Janus Capital Group Inc		62,468		1,766,595
Leucadia National Corp		33,977		1,638,371
MasterCard Inc ‘A’		8,589		1,270,914
Moody’s Corp		25,170		1,268,568
				12,337,654
Health Care - 7.33%
Gen-Probe Inc *		24,509		1,631,809
Illumina Inc *		16,479		854,931
Stericycle Inc *		34,109		1,949,670
Techne Corp *		26,946		1,699,754
				6,136,164
Integrated Oils - 4.17%
Ultra Petroleum Corp * (Canada)		56,202		3,486,772
Materials & Processing - 6.18%
Aecom Technology Corp *		17,389		607,398
Forest City Enterprises Inc ‘A’		23,208		1,280,153
Nalco Holding Co		77,311		2,292,271
Texas Industries Inc		12,676		995,066
				5,174,888

Multi-Industry - 0.49%
Freedom Acquisition Holdings Inc *	36,463	410,209
Producer Durables - 4.14%
Crown Castle International Corp *	30,318	1,231,820
Desarrolladora Homex SAB de CV ADR * (Mexico)	13,128	728,604
Itron Inc *	9,286	864,248
NVR Inc *	1,368	643,302
		3,467,974
Technology - 5.16%
Autodesk Inc *	16,649	831,951
Equinix Inc *	17,162	1,522,098
salesforce.com inc *	24,097	1,236,658
SAVVIS Inc *	18,894	732,709
		4,323,416
Utilities - 6.50%
NII Holdings Inc *	29,804	2,448,399
Questar Corp	22,365	1,174,833
Tencent Holdings Ltd + (Cayman)	282,000	1,814,297
		5,437,529
Total Common Stocks (Cost $61,968,713)		79,506,431
OPEN-END MUTUAL FUND - 3.07%
Aeroplan Income Fund (Canada)	115,061	2,573,877
Total Open-End Mutual Fund (Cost $1,788,482)		2,573,877

	Principal Amount
SHORT-TERM INVESTMENTS - 2.83%
U.S. Government Agency Issue - 2.72%
Federal Home Loan Bank 4.000% due 10/01/07	$	2,275,000	2,275,000

	Shares
Money Market Fund - 0.11%
BlackRock Liquidity Funds Institutional TempCash		92,289		92,289
Total Short-Term Investments (Cost $2,367,289)				2,367,289
TOTAL INVESTMENTS - 100.88% (Cost $66,124,484)				84,447,597
OTHER ASSETS & LIABILITIES, NET - (0.88%)				(740,036	)
NET ASSETS - 100.00%			$	83,707,561

See Notes to Financial Statements A-43 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS
PL MID-CAP GROWTH FUND
Schedule of Investments (Continued)
September 30, 2007 (Unaudited)

Notes to Schedule of Investments

(a) As of September 30, 2007, the Fund was diversified as a percentage of net assets as follows:

Consumer Discretionary	36.33	%
Financial Services	14.74	%
Autos & Transportation	7.78	%
Health Care	7.33	%
Utilities	6.50	%
Materials & Processing	6.18	%
Technology	5.16	%
Integrated Oils	4.17	%
Producer Durables	4.14	%
Open-End Mutual Fund	3.07	%
Short-Term Investments	2.83	%
Energy	2.16	%
Multi-Industry	0.49	%
	100.88	%
Other Assets & Liabilities, Net	(0.88	%)
	100.00	%

(b) Short-term securities reflect either the stated coupon rate or the annualized effective yield on the date of purchase for discounted securities.

(c) Securities with a total aggregate market value of $5,034,751, or 6.01% of the net assets, were valued under the fair value procedures established by the Funds’ Board of Trustees.

See Notes to Financial Statements A-44 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS

PL REAL ESTATE FUND

Schedule of Investments

September 30, 2007 (Unaudited)

	Shares		Value
COMMON STOCKS - 95.98%
Consumer Discretionary - 5.50%
Gaylord Entertainment Co *		1,006	$	53,539
Hilton Hotels Corp		3,336		155,091
Morgans Hotel Group Co *		19,814		430,955
Starwood Hotels & Resorts Worldwide Inc		24,204		1,470,393
				2,109,978
Financial Services - 88.33%
Acadia Realty Trust REIT		9,815		266,281
AMB Property Corp REIT		14,210		849,900
American Campus Communities Inc REIT		1,060		31,047
Archstone-Smith Trust REIT		10,645		640,190
AvalonBay Communities Inc REIT		10,071		1,188,982
Boston Properties Inc REIT		20,648		2,145,327
Brandywine Realty Trust REIT		26,584		672,841
BRE Properties Inc REIT		10,130		566,571
Brookfield Properties Corp (Canada)		66,620		1,658,838
Camden Property Trust REIT		4,355		279,809
Cedar Shopping Centers Inc REIT		3,280		44,674
Cogdell Spencer Inc REIT		2,080		38,480
Colonial Properties Trust REIT		3,765		129,139
DCT Industrial Trust Inc REIT		5,750		60,202
DiamondRock Hospitality Co REIT		11,930		207,701
Douglas Emmett Inc REIT		9,620		237,903
Duke Realty Corp REIT		3,000		101,430
EastGroup Properties Inc REIT		2,030		91,878
Equity Lifestyle Properties Inc REIT		7,180		371,924
Equity One Inc REIT		281		7,643
Equity Residential REIT		62,814		2,660,801
Essex Property Trust Inc REIT		5,527		649,809
Federal Realty Investment Trust REIT		11,023		976,638
General Growth Properties Inc REIT		15,682		840,869
GMH Communities Trust REIT		4,810		37,277
HCP Inc REIT		910		30,185
Healthcare Realty Trust Inc REIT		33,390		890,177
Hersha Hospitality Trust REIT		12,497		123,720
Highwoods Properties Inc REIT		2,316		84,928
Host Hotels & Resorts Inc REIT		104,819		2,352,138
Kilroy Realty Corp REIT		8,429		511,050
LaSalle Hotel Properties REIT		2,695		113,406
Liberty Property Trust REIT		21,016		845,053
Mack-Cali Realty Corp REIT		28,421		1,168,103
Maguire Properties Inc REIT		7,020		181,327
Mid-America Apartment Communities Inc REIT		4,430		220,836
Parkway Properties Inc REIT		708		31,251
Plum Creek Timber Co Inc REIT		8,728		390,665
Post Properties Inc REIT		15,236		589,633
ProLogis REIT		8,402		557,473
PS Business Parks Inc REIT		1,140		64,809
Public Storage REIT		13,327		1,048,169
Ramco-Gershenson Properties Trust REIT		5,915		184,785
Regency Centers Corp REIT		16,406		1,259,161
Senior Housing Properties Trust REIT		17,170		378,770
Simon Property Group Inc REIT		34,585		3,458,500
SL Green Realty Corp REIT		5,503		642,585
Sovran Self Storage Inc REIT		6,637		304,240
Strategic Hotels & Resorts Inc REIT		29,657		610,638
Taubman Centers Inc REIT		2,074		113,552
The Macerich Co REIT		14,503		1,270,173
UDR Inc REIT		1,570		38,182
Universal Health Realty Income Trust REIT		3,000		106,590
Vornado Realty Trust REIT		14,145		1,546,756
				33,873,009

Health Care - 0.82%
Assisted Living Concepts Inc ‘A’ *	34,250		313,045
Materials & Processing - 1.33%
Brookfield Homes Corp	1,350		25,042
Forest City Enterprises Inc ‘A’	8,805		485,684
			510,726
Total Common Stocks (Cost $32,082,230)			36,806,758
SHORT-TERM INVESTMENT - 4.49%
Money Market Fund - 4.49%
BlackRock Liquidity Funds Institutional TempFund	1,721,099		1,721,099
Total Short-Term Investment (Cost $1,721,099)			1,721,099
TOTAL INVESTMENTS - 100.47% (Cost $33,803,329)			38,527,857
OTHER ASSETS & LIABILITIES, NET - (0.47%)			(179,048	)
NET ASSETS - 100.00%		$	38,348,809

Note to Schedule of Investments

(a) As of September 30, 2007, the Fund was diversified by property sector as a percentage of net assets as follows:

Office/Industrial	24.95	%
Retail	21.96	%
Residential	18.07	%
Lodging	14.38	%
Diversified	7.49	%
Health Care/Assisted Living	4.59	%
Self-Storage	3.52	%
Land	1.02	%
	95.98	%
Short-Term Investment	4.49	%
Other Assets & Liabilities, Net	(0.47	%)
	100.00	%

See Notes to Financial Statements A-45 See explanation of symbols and terms, if any, on page A-46

PACIFIC LIFE FUNDS

Schedule of Investments

Explanation of Symbols and Terms

September 30, 2007 (Unaudited)

	Explanation of Symbols for Schedules of Investments
*	Non-income producing securities.
+	Securities were fair valued under the procedures established by the Pacific Life Funds’ Board of Trustees, including considerations to determine fair values for certain foreign securities. See Note 2A to Financial Statements.
~	Securities are not registered under the Securities Act of 1933 (1933 Act). These securities may be sold to “qualified institutional buyers” in transactions exempt from registration pursuant to Rule 144A of the 1933 Act.
^	Securities with their principal amount adjusted for inflation.
§	Variable rate securities. The rate shown is based on the latest available information as of September 30, 2007.
±	Securities are grouped by coupon rate and represent a range of maturities.
“	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.
r	A portion of this security is subject to call and/or put options written.
‡	Securities were fully/partially segregated with the broker(s)/custodian to cover margin requirements for open futures contracts as of September 30, 2007.
à	Total shares owned by the fund as of September 30, 2007 were less than one share.

	Explanation of Terms for Schedules of Investments
Currency Abbreviations:
AUD	Australian Dollar
BRL	Brazilian Real
CAD	Canadian Dollar
CHF	Swiss Franc
CNY	Chinese Renminbi
DKK	Danish Krone
EUR	Euro
GBP	British Pound
JPY	Japanese Yen
KRW	Korean Won
MXN	Mexican Peso
MYR	Malaysian Ringgit
NZD	New Zealand Dollar
PLN	Polish Zloty
RUB	Russian Ruble
SGD	Singapore Dollar
USD	United States Dollar
Other Abbreviations:
ADR	American Depositary Receipt
CBOE	Chicago Board Options Exchange
CBOT	Chicago Board of Trade
CME	Chicago Mercantile Exchange
CPI	Consumer Price Index
CVA	Certificaten Van Aandelen (Dutch Certificate)
FDR	Fiduciary Depositary Receipt
GDR	Global Depositary Receipt
HSI	Hong Kong Stock Exchange
LI	London Stock Exchange
LIBOR	London Interbank Offered Rate
‘NY’	New York Shares
NYSE	New York Stock Exchange
OTC	Over the Counter
REIT	Real Estate Investment Trust
RNC	Riparmio Non-Convertible (Non-Convertible savings shares on Italian Stock Exchanges)
XAMS	Amsterdam Stock Exchange
XVTX	Virt-X Pan-European Stock Exchange

See Notes to Financial Statements A-46

[THIS PAGE INTENTIONALLY LEFT BLANK]

PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2007 (Unaudited)

	PL Portfolio Optimization Conservative		PL Portfolio Optimization Moderate- Conservative			PL Portfolio Optimization Moderate	PL Portfolio Optimization Moderate- Aggressive		PL Portfolio Optimization Aggressive		PL Money Market Fund		PL Small-Cap Growth Fund		PL International Value Fund
ASSETS
Investments, at cost	$	33,589,276	$	95,016,115	$	374,318,659	$	398,691,404	$	185,021,174	$	29,564,742	$	47,365,382	$	94,408,722
Investments, at value	$	35,071,798	$	102,696,214	$	417,334,380	$	454,635,834	$	213,416,767	$	29,564,742	$	50,583,428	$	110,833,633
Cash (1)		280,302		—		198,345		305,654		388,060		—		687,188		2,677,466
Foreign currency held, at value (2)		—		—		—		—		—		—		—		300,925
Receivables:
Dividends and interest		75,882		156,933		436,591		280,297		32,114		30,780		7,987		337,902
Foreign tax reclaim		—		—		—		—		—		—		—		150,093
Fund shares sold		480,178		2,775,602		3,291,662		2,845,959		1,466,318		108,485		790		215,228
Securities sold		—		307		—		—		—		—		451,672		56,820
Variation margin		—		—		—		—		—		—		—		74,636
Due from adviser and/or administrator		20,428		45,903		169,828		186,129		89,079		7,328		15,509		27,602
Prepaid expenses and other assets		6,539		6,439		5,283		4,705		4,614		5,868		6,043		5,119
Total Assets		35,935,127		105,681,398		421,436,089		458,258,578		215,396,952		29,717,203		51,752,617		114,679,424
LIABILITIES
Payables:
Fund shares redeemed		38,286		157,671		697,417		758,919		516,550		330,333		407		3,670
Securities purchased		355,856		156,220		632,133		583,210		418,498		2,500,000		153,265		—
Due to custodian		—		307		—		—		—		—		—		—
Income distributions		—		—		—		—		—		812		—		—
Accrued advisory fees		—		—		—		—		—		9,016		41,113		74,504
Accrued administration fees		10,203		28,766		115,944		125,999		58,611		7,889		14,390		30,679
Accrued support service expenses		4,263		12,257		48,332		53,601		24,732		2,194		6,057		10,047
Accrued custodian fees and expenses		1,977		2,309		2,153		1,767		1,746		5,965		6,422		7,395
Accrued legal and audit fees		3,613		10,414		40,854		44,575		19,118		2,654		5,095		11,832
Accrued deferred trustee compensation and expenses		1,861		4,903		17,205		17,642		7,262		8,626		5,631		11,360
Accrued distribution and/or service fees		2,441		7,055		28,023		30,689		13,352		1,115		2,212		4,851
Accrued transfer agency out-of-pocket expenses		2,983		8,492		33,761		35,288		16,263		2,359		7,056		9,031
Accrued other		5,067		18,684		30,029		35,621		21,578		1,658		4,404		7,942
Total Liabilities		426,550		407,078		1,645,851		1,687,311		1,097,710		2,872,621		246,052		171,311
NET ASSETS	$	35,508,577	$	105,274,320	$	419,790,238	$	456,571,267	$	214,299,242	$	26,844,582	$	51,506,565	$	114,508,113

(1)	Includes margin deposits of $79,300 segregated for futures contracts in the PL International Value Fund.
(2)	Foreign currency held at cost for the PL International Value Fund was $290,833.

See Notes to Financial Statements B-1

PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
SEPTEMBER 30, 2007 (Unaudited)

	PL Portfolio Optimization Conservative			PL Portfolio Optimization Moderate- Conservative		PL Portfolio Optimization Moderate		PL Portfolio Optimization Moderate- Aggressive		PL Portfolio Optimization Aggressive			PL Money Market Fund (1)			PL Small-Cap Growth Fund			PL International Value Fund
NET ASSETS CONSIST OF:
Paid-in capital	$	33,745,337		$	96,586,488	$	370,892,069	$	394,343,517	$	183,311,157		$	26,835,896		$	43,000,085		$	95,050,472
Undistributed/accumulated net investment income (loss)		397,251			771,755		2,005,811		921,957		(173,957	)		8,780			(216,549	)		951,912
Undistributed/accumulated net realized gain (loss)		(116,533	)		235,978		3,876,637		5,361,363		2,766,449			(94	)		5,504,983			1,982,082
Net unrealized appreciation on investments and assets and liabilities in foreign currencies		1,482,522			7,680,099		43,015,721		55,944,430		28,395,593			—			3,218,046			16,523,647
NET ASSETS	$	35,508,577		$	105,274,320	$	419,790,238	$	456,571,267	$	214,299,242		$	26,844,582		$	51,506,565		$	114,508,113
Class A Shares:
Net Assets	$	14,942,644		$	46,208,164	$	186,710,700	$	203,525,076	$	103,983,510		$	26,844,582		$	50,673,211		$	112,461,477
Shares of beneficial interest outstanding		1,387,553			3,987,970		14,751,903		15,139,920		7,255,811			26,846,392			4,091,842			7,212,249
Net Asset Value per share*	$	10.77		$	11.59	$	12.66	$	13.44	$	14.33		$	1.00		$	12.38		$	15.59
Sales Charge - Maximum is 5.50% of offering price		0.63			0.67		0.74		0.78		0.83			—			0.72			0.91
Maximum offering price per share	$	11.40		$	12.26	$	13.40	$	14.22	$	15.16		$	1.00		$	13.10		$	16.50
Class B Shares:
Net Assets	$	3,124,626		$	13,751,695	$	55,506,807	$	69,892,298	$	31,030,499					$	444,650		$	667,001
Shares of beneficial interest outstanding		292,035			1,195,168		4,416,131		5,245,876		2,186,007						37,142			43,846
Net Asset Value and offering price per share*	$	10.70		$	11.51	$	12.57	$	13.32	$	14.20					$	11.97		$	15.21
Class C Shares:
Net Assets	$	16,659,758		$	43,806,614	$	172,124,263	$	180,986,553	$	78,320,484					$	388,704		$	1,379,635
Shares of beneficial interest outstanding		1,558,443			3,807,247		13,709,471		13,609,072		5,519,691						32,419			90,729
Net Asset Value and offering price per share*	$	10.69		$	11.51	$	12.56	$	13.30	$	14.19					$	11.99		$	15.21
Class R Shares:**
Net Assets	$	781,549		$	1,507,847	$	5,448,468	$	2,167,340	$	964,749
Shares of beneficial interest outstanding		72,682			130,322		431,418		161,292		67,378
Net Asset Value per share	$	10.75		$	11.57	$	12.63	$	13.44	$	14.32

*	Redemption price per share is equal to the Net Asset Value per share less any applicable contingent deferred sales charge.
**	Class R shares are offered to the PL Portfolio Optimization Funds only.
(1)	PL Money Market Fund offers Class A Shares only and is not subject to a front-end sales load.

See Notes to Financial Statements B-2

PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
SEPTEMBER 30, 2007 (Unaudited)

	PL Large-Cap Value Fund		PL Short Duration Bond Fund		PL Growth LT Fund		PL Mid-Cap Value Fund		PL Large-Cap Growth Fund		PL International Large-Cap Fund		PL Small-Cap Value Fund		PL Main Street Core Fund
ASSETS
Investments, at cost	$	57,309,175	$	80,315,334	$	65,490,018	$	82,737,289	$	30,192,845	$	74,807,640	$	15,850,787	$	95,362,579
Investments, at value	$	69,665,906	$	80,805,704	$	81,229,470	$	84,704,130	$	36,149,302	$	93,418,098	$	15,647,975	$	107,780,406
Cash (1)		1,755,299		—		59,063		—		378,820		—		—		1,060,165
Foreign currency held, at value (2)		—		—		10,878		—		—		69,581		—		—
Receivables:
Dividends and interest		110,991		695,462		60,561		108,896		17,806		212,977		28,366		124,948
Foreign tax reclaim		254		—		18,829		—		—		123,104		—		—
Fund shares sold		63,559		45		63,361		90,109		623		30,235		97,147		100,827
Securities sold		—		—		238,794		690,818		—		188,512		10,330		1,464,293
Due from adviser and/or administrator		16,084		17,662		20,436		20,113		12,094		29,647		7,015		24,714
Prepaid expenses and other assets		5,820		1,136		6,381		381		5,302		6,295		11,359		1,536
Total Assets		71,617,913		81,520,009		81,707,773		85,614,447		36,563,947		94,078,449		15,802,192		110,556,889
LIABILITIES
Payables:
Fund shares redeemed		15		—		1,209		—		—		—		16		20
Securities purchased		1,753,347		2,586,334		2,495,862		2,726,225		—		330,697		483,099		1,803,649
Variation margin		—		7,641		—		—		—		—		—		—
Accrued advisory fees		47,142		38,623		46,440		56,459		27,247		77,900		10,587		55,969
Accrued administration fees		19,411		22,530		21,672		23,248		10,038		25,967		3,900		30,137
Accrued support service expenses		5,278		8,486		6,696		8,838		3,466		9,532		3,547		11,620
Accrued custodian fees and expenses		5,229		3,146		5,413		9,052		10,447		24,348		—		31,349
Accrued legal and audit fees		8,630		9,681		9,267		10,384		4,216		10,703		2,127		12,816
Accrued deferred trustee compensation and expenses		12,158		3,962		8,423		3,041		15,103		7,551		214		3,602
Accrued distribution and/or service fees		3,106		3,257		3,362		3,414		1,643		3,979		614		4,427
Accrued transfer agency out-of-pocket expenses		6,223		6,926		6,724		7,330		2,891		8,324		3,406		9,623
Accrued other		6,540		17,935		6,998		19,109		4,337		9,036		1,852		13,651
Forward foreign currency contracts depreciation		—		—		28,558		—		—		—		—		—
Outstanding options written, at value (premiums received $5,692)		—		—		2,548		—		—		—		—		—
Total Liabilities		1,867,079		2,708,521		2,643,172		2,867,100		79,388		508,037		509,362		1,976,863
NET ASSETS	$	69,750,834	$	78,811,488	$	79,064,601	$	82,747,347	$	36,484,559	$	93,570,412	$	15,292,830	$	108,580,026

(1)	Includes margin deposits of $59,063 segregated for put and call options written in the PL Growth LT Fund.
(2)	Foreign currency held at cost for the PL Growth LT and PL International Large-Cap Funds were $10,673 and $66,946 respectively.

See Notes to Financial Statements B-3

PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
SEPTEMBER 30, 2007 (Unaudited)

	PL Large-Cap Value Fund		PL Short Duration Bond Fund			PL Growth LT Fund		PL Mid-Cap Value Fund		PL Large-Cap Growth Fund			PL International Large-Cap Fund		PL Small-Cap Value Fund (1)			PL Main Street Core Fund (1)
NET ASSETS CONSIST OF:
Paid-in capital	$	56,841,224	$	78,503,846		$	62,671,659	$	76,094,913	$	31,820,980		$	73,254,652	$	15,494,064		$	93,671,898
Undistributed/accumulated net investment income (loss)		177,336		19,774			17,207		108,819		(171,681	)		1,017,870		42,777			310,760
Undistributed/accumulated net realized gain (loss)		375,505		(320,924	)		662,185		4,576,774		(1,121,197	)		675,658		(41,199	)		2,179,541
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		12,356,769		608,792			15,713,550		1,966,841		5,956,457			18,622,232		(202,812	)		12,417,827
NET ASSETS	$	69,750,834	$	78,811,488		$	79,064,601	$	82,747,347	$	36,484,559		$	93,570,412	$	15,292,830		$	108,580,026
Class A Shares:
Net Assets	$	67,638,062	$	78,578,321		$	77,879,335	$	82,438,946	$	35,218,568		$	92,049,406	$	15,292,830		$	108,580,026
Shares of beneficial interest outstanding		4,954,954		7,922,396			5,389,862		7,298,873		3,321,960			5,353,176		1,593,964			8,843,166
Net Asset Value per share*	$	13.65	$	9.92		$	14.45	$	11.29	$	10.60		$	17.20	$	9.59		$	12.28
Sales Charge - Maximum is 5.50% of offering price		0.79		0.58			0.84		0.66		0.62			1.00		—			—
Maximum offering price per share	$	14.44	$	10.50		$	15.29	$	11.95	$	11.22		$	18.20	$	9.59		$	12.28
Class B Shares:
Net Assets	$	676,976	$	45,549		$	465,917	$	64,891	$	461,915		$	691,648
Shares of beneficial interest outstanding		50,579		4,598			33,193		5,841		45,051			41,407
Net Asset Value and offering price per share*	$	13.38	$	9.91		$	14.04	$	11.11	$	10.25		$	16.70
Class C Shares:
Net Assets	$	1,435,796	$	187,618		$	719,349	$	243,510	$	804,076		$	829,358
Shares of beneficial interest outstanding		107,597		18,937			51,423		21,930		78,553			49,504
Net Asset Value and offering price per share*	$	13.34	$	9.91		$	13.99	$	11.10	$	10.24		$	16.75

*	Redemption price per share is equal to the Net Asset Value per share less any applicable contingent deferred sales charge.
(1)	The PL Small-Cap Value and PL Main Street Core Funds offer Class A Shares only and are not subject to a front-end sales load.

See Notes to Financial Statements B-4

PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
SEPTEMBER 30, 2007 (Unaudited)

	PL Emerging Markets Fund		PL Managed Bond Fund		PL Inflation Managed Fund		PL Comstock Fund		PL Mid-Cap Growth Fund		PL Real Estate Fund
ASSETS
Investments, at cost	$	35,106,700	$	167,719,976	$	200,721,775	$	104,647,912	$	66,124,484	$	33,803,329
Investments, at value	$	52,253,719	$	168,333,197	$	201,581,665	$	113,754,851	$	84,447,597	$	38,527,857
Foreign currency held, at value (1)		488,997		2,758,948		542,996		—		81,509		33,165
Receivables:
Dividends and interest		98,059		550,360		693,789		154,088		33,212		143,607
Foreign tax reclaim		691		—		—		—		—		—
Fund shares sold		15,695		206,449		80,065		175,249		1,990		35,775
Securities sold		1,287,747		46,686,193		1,011,720		562,182		1,484,407		35,909
Variation margin		—		197,363		40,473		—		—		—
Securities sold short		—		18,851,414		56,923,458		—		—		—
Swap agreements		—		2,380		—		—		—		—
Due from adviser and/or administrator		40,820		34,817		25,535		24,085		17,847		13,265
Forward foreign currency contracts appreciation		—		908,133		228,085		—		—		—
Prepaid expenses and other assets		835		7,126		1,510		6,741		6,186		489
Swap appreciation		—		1,742,839		833,768		—		—		—
Total Assets		54,186,563		240,279,219		261,963,064		114,677,196		86,072,748		38,790,067
LIABILITIES
Payables:
Fund shares redeemed		—		4,224		23,104		4,632		7,647		15,204
Securities purchased		72,108		76,743,719		96,896,003		2,878,095		2,223,862		346,398
Due to custodian		—		—		803,134		—		—		—
Securities covering shorts		—		6,920,234		—		—		—		—
Securities sold short, at value (proceeds $11,831,654 and $56,923,458, respectively)		—		11,824,068		56,888,065		—		—		—
Swap agreements		—		1,065,681		268,370		—		—		—
Income distributions		—		1,972		1,178		—		—		—
Accrued advisory fees		41,502		68,180		51,771		83,842		58,383		33,134
Accrued administration fees		14,526		39,772		30,200		30,889		22,704		10,543
Accrued support service expenses		5,109		12,710		9,600		11,347		7,521		4,100
Accrued custodian fees and expenses		17,606		9,974		2,415		8,939		10,295		5,032
Accrued legal and audit fees		5,966		15,603		12,338		12,594		9,197		4,791
Accrued deferred trustee compensation and expenses		2,117		19,306		7,869		8,692		9,205		1,653
Accrued foreign capital gains tax		32,190		—		—		—		—		—
Accrued distribution and/or service fees		2,191		6,177		4,707		4,750		3,720		1,612
Accrued transfer agency out-of-pocket expenses		5,315		11,408		9,161		9,250		6,064		3,306
Accrued other		32,435		7,991		19,898		8,571		6,589		15,485
Forward foreign currency contracts depreciation		—		652,985		159,249		—		—		—
Outstanding options written, at value (premiums received $461,078 and $149,742, respectively)		—		671,286		150,799		—		—		—
Swap depreciation		—		370,703		317,056		—		—		—
Total Liabilities		231,065		98,445,993		155,654,917		3,061,601		2,365,187		441,258
NET ASSETS	$	53,955,498	$	141,833,226	$	106,308,147	$	111,615,595	$	83,707,561	$	38,348,809

(1) Foreign currency held at cost for the PL Emerging Markets, PL Managed Bond, PL Inflation Managed, PL Mid-Cap Growth and PL Real Estate Funds were $483,442, $2,675,059, $529,390, $78,614 and $28,997, respectively.

See Notes to Financial Statements B-5

PACIFIC LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
SEPTEMBER 30, 2007 (Unaudited)

	PL Emerging Markets Fund (1)		PL Managed Bond Fund			PL Inflation Managed Fund			PL Comstock Fund		PL Mid-Cap Growth Fund			PL Real Estate Fund
NET ASSETS CONSIST OF:
Paid-in capital	$	33,275,463	$	138,967,409		$	107,522,652		$	101,037,879	$	60,880,230		$	32,887,907
Undistributed/accumulated net investment income (loss)		248,621		1,362,859			816,770			493,480		(206,521	)		(179,732	)
Undistributed/accumulated net realized gain (loss)		3,224,506		(1,720,275	)		(3,611,758	)		977,297		4,707,291			911,938
Net unrealized appreciation on investments and assets and liabilities in foreign currencies		17,206,908		3,223,233			1,580,483			9,106,939		18,326,561			4,728,696
NET ASSETS	$	53,955,498	$	141,833,226		$	106,308,147		$	111,615,595	$	83,707,561		$	38,348,809
Class A Shares:
Net Assets	$	53,955,498	$	138,539,928		$	103,263,481		$	109,903,385	$	81,059,300		$	37,948,668
Shares of beneficial interest outstanding		3,348,323		13,446,214			10,176,136			7,718,764		6,434,780			2,848,268
Net Asset Value per share*	$	16.11	$	10.30		$	10.15		$	14.24	$	12.60		$	13.32
Sales Charge - Maximum is 5.50% of offering price		—		0.60			0.59			0.83		0.73			0.78
Maximum offering price per share	$	16.11	$	10.90		$	10.74		$	15.07	$	13.33		$	14.10
Class B Shares:
Net Assets			$	867,901		$	828,269		$	690,826	$	1,275,467		$	103,828
Shares of beneficial interest outstanding				84,409			82,204			49,396		104,478			7,830
Net Asset Value and offering price per share*			$	10.28		$	10.08		$	13.99	$	12.21		$	13.26
Class C Shares:
Net Assets			$	2,425,397		$	2,216,397		$	1,021,384	$	1,372,794		$	296,313
Shares of beneficial interest outstanding				235,571			219,855			73,192		112,726			22,434
Net Asset Value and offering price per share*			$	10.30		$	10.08		$	13.95	$	12.18		$	13.21

*	Redemption price per share is equal to the Net Asset Value per share less any applicable contingent deferred sales charge.
(1)	The PL Emerging Markets Fund offers Class A Shares only and is not subject to a front-end sales load.

See Notes to Financial Statements B-6

PACIFIC LIFE FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2007 (Unaudited)

	PL Portfolio Optimization Conservative			PL Portfolio Optimization Moderate- Conservative			PL Portfolio Optimization Moderate			PL Portfolio Optimization Moderate- Aggressive			PL Portfolio Optimization Aggressive			PL Money Market Fund			PL Small-Cap Growth Fund			PL International Value Fund
INVESTMENT INCOME
Dividends, net of foreign taxes withheld (1)	$	—		$	—		$	—		$	—		$	—		$	—		$	126,972		$	1,594,641
Dividends from mutual fund investments		467,656			959,506			2,773,023			1,780,681			178,703			979			—			—
Interest		2,383			3,825			11,608			12,634			8,112			658,931			36,439			71,016
Total Investment Income		470,039			963,331			2,784,631			1,793,315			186,815			659,910			163,411			1,665,657
EXPENSES
Advisory fees		—			—			—			—			—			49,598			239,757			401,115
Administration fees		56,298			159,937			656,000			723,313			326,683			43,398			83,915			165,165
Support services expenses		6,619			18,782			75,049			81,992			36,579			4,440			10,555			20,625
Custodian fees and expenses		7,663			6,966			6,188			6,165			6,184			12,178			17,058			30,022
Shareholder reports		2,899			8,298			32,891			35,895			15,803			1,801			3,313			8,201
Distribution and/or service fees
Class A		16,210			50,498			209,959			229,422			114,342			30,998			58,878			115,321
Class B		14,352			63,798			249,450			319,527			140,190			—			2,215			3,390
Class C		80,284			184,415			765,944			822,595			333,389			—			2,031			7,227
Class R (2)		687			3,380			9,528			3,400			1,217			—			—			—
Transfer agency out-of-pocket expenses		8,081			23,078			93,617			102,214			44,657			4,635			8,575			21,171
Registration fees		27,929			24,815			32,133			37,283			29,666			9,966			16,250			18,253
Legal and audit fees		4,314			12,186			48,465			53,041			23,726			2,713			4,974			13,847
Trustees’ compensation and expenses		1,157			3,415			13,979			15,420			6,875			733			1,506			3,356
Other		3,705			7,307			22,644			23,978			10,947			2,470			5,055			15,739
Total Expenses		230,198			566,875			2,215,847			2,454,245			1,090,258			162,930			454,082			823,432
Adviser Reimbursement and Administrator Reduction		(118,664	)		(264,784	)		(980,966	)		(1,079,301	)		(501,121	)		(45,138	)		(79,275	)		(154,809	)
Distribution and/or Service Fees Waiver		(40,212	)		(114,240	)		(468,571	)		(516,651	)		(233,344	)		—			—			—
Net Expenses		71,322			187,851			766,310			858,293			355,793			117,792			374,807			668,623
NET INVESTMENT INCOME (LOSS)		398,717			775,480			2,018,321			935,022			(168,978	)		542,118			(211,396	)		997,034
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investment security and forward transactions (1)		75,801			(67,354	)		(6,914	)		(216,118	)		(168,179	)		—			5,770,843			2,096,001
Futures contracts and swap transactions		—			—			—			—			—			—			—			20,365
Foreign currency transactions		—			—			—			—			—			—			—			(78,475	)
Capital gain distributions from mutual fund investments		106,209			687,828			4,374,951			5,987,343			3,254,459			—			—			—
Net Realized Gain		182,010			620,474			4,368,037			5,771,225			3,086,280			—			5,770,843			2,037,891
Net change in unrealized appreciation (depreciation) on:
Investment securities and forwards (1)		563,975			2,802,290			15,935,963			21,002,978			10,893,293			—			(694,515	)		4,506,220
Futures contracts and swaps		—			—			—			—			—			—			—			54,052
Foreign currencies		—			—			—			—			—			—			—			15,102
Change in Net Unrealized Appreciation (Depreciation)		563,975			2,802,290			15,935,963			21,002,978			10,893,293			—			(694,515	)		4,575,374
NET GAIN		745,985			3,422,764			20,304,000			26,774,203			13,979,573			—			5,076,328			6,613,265
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	1,144,702		$	4,198,244		$	22,322,321		$	27,709,225		$	13,810,595		$	542,118		$	4,864,932		$	7,610,299

(1)	Dividends were net of $703 and $229,082 foreign taxes withheld for the PL Small-Cap Growth and PL International Value Funds, respectively. No foreign tax was withheld on realized and change in unrealized capital gain for all these funds.
(2)	Class R shares are offered to the PL Portfolio Optimization Funds only.

See Notes to Financial Statements B-7

PACIFIC LIFE FUNDS
STATEMENTS OF OPERATIONS (Continued)
FOR THE SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2007 (Unaudited)

	PL Large-Cap Value Fund			PL Short Duration Bond Fund			PL Growth LT Fund			PL Mid-Cap Value Fund			PL Large-Cap Growth Fund			PL International Large-Cap Fund			PL Small-Cap Value Fund (1)			PL Main Street Core Fund
INVESTMENT INCOME
Dividends, net of foreign taxes withheld (2)	$	580,955		$	—		$	404,093		$	558,763		$	89,509		$	1,668,107		$	62,208		$	885,171
Dividends from mutual fund investments		71,827			123,671			4,706			118,191			—			2,454			11,720			—
Interest		5,301			1,668,494			92,106			—			12,226			60,889			6,110			21,665
Total Investment Income		658,083			1,792,165			500,905			676,954			101,735			1,731,450			80,038			906,836
EXPENSES
Advisory fees		279,995			224,651			269,050			342,894			160,894			460,202			23,599			321,522
Administration fees		115,292			131,046			125,557			141,192			59,277			153,401			8,694			173,127
Support services expenses		16,161			17,101			17,061			18,150			8,026			20,036			3,547			22,506
Custodian fees and expenses		10,302			8,573			19,947			19,569			25,536			71,833			5,808			59,869
Shareholder reports		6,001			6,799			6,500			7,298			2,999			7,900			1,326			9,000
Distribution and/or service fees
Class A		79,591			93,244			88,214			100,392			40,774			107,607			6,210			123,662
Class B		3,489			227			2,308			480			2,215			3,429			—			—
Class C		7,552			1,216			3,568			1,356			4,050			4,432			—			—
Transfer agency out-of-pocket expenses		15,502			17,471			16,744			18,760			7,781			20,340			3,406			23,118
Registration fees		16,679			17,340			16,694			17,317			16,180			17,064			109			660
Legal and audit fees		9,034			9,939			9,531			10,921			4,445			11,560			2,231			13,214
Trustees’ compensation and expenses		2,554			2,818			2,689			3,447			1,237			3,289			537			3,815
Offering expenses		—			—			—			—			—			—			1,445			—
Other		6,634			8,676			8,892			7,158			4,740			12,015			1,196			14,591
Total Expenses		568,786			539,101			586,755			688,934			338,154			893,108			58,108			765,084
Adviser Reimbursement and Administrator Reduction		(99,337	)		(107,438	)		(115,994	)		(122,790	)		(79,412	)		(185,951	)		(20,847	)		(171,505	)
Net Expenses		469,449			431,663			470,761			566,144			258,742			707,157			37,261			593,579
NET INVESTMENT INCOME (LOSS)		188,634			1,360,502			30,144			110,810			(157,007	)		1,024,293			42,777			313,257
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investment security and forward transactions (2)		553,227			92,335			707,005			4,741,801			1,567,763			1,201,456			(41,199	)		2,719,582
Futures contracts and swap transactions		—			250,082			—			—			—			—			—			—
Written option transactions		—			—			7,753			—			—			—			—			—
Foreign currency transactions		(72	)		—			(11,065	)		—			—			(53,048	)		—			(150	)
Net Realized Gain (Loss)		553,155			342,417			703,693			4,741,801			1,567,763			1,148,408			(41,199	)		2,719,432
Net change in unrealized appreciation (depreciation) on:
Investment securities and forwards (2)		2,620,549			412,573			6,501,900			(3,748,705	)		2,564,196			2,774,457			(202,812	)		5,493,428
Futures contracts and swaps		—			94,923			—			—			—			—			—			—
Written options		—			—			278			—			—			—			—			—
Foreign currencies		—			—			(21,208	)		—			—			6,806			—			—
Change in Net Unrealized Appreciation (Depreciation)		2,620,549			507,496			6,480,970			(3,748,705	)		2,564,196			2,781,263			(202,812	)		5,493,428
NET GAIN (LOSS)		3,173,704			849,913			7,184,663			993,096			4,131,959			3,929,671			(244,011	)		8,212,860
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	3,362,338		$	2,210,415		$	7,214,807		$	1,103,906		$	3,974,952		$	4,953,964		($	201,234	)	$	8,526,117

(1)

Operations commenced on June 29, 2007.

(2)

Dividends were net of $12,371, $0, $26,375, $0, $0, $240,141, $0 and $0 foreign taxes withheld, respectively. Realized gains on investment security transactions for the PL International Large-Cap Fund are net of foreign capital gains tax withheld of $3,723. Change in unrealized appreciation (depreciation) on security transactions for the PL International Large-Cap Fund are net of decrease in deferred foreign capital gains tax of $9,706. No foreign tax was withheld on realized and change in unrealized capital gain for all other funds.

See Notes to Financial Statements B-8

PACIFIC LIFE FUNDS
STATEMENTS OF OPERATIONS (Continued)
FOR THE SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2007 (Unaudited)

	PL Emerging Markets Fund			PL Managed Bond Fund			PL Inflation Managed Fund			PL Comstock Fund			PL Mid-Cap Growth Fund			PL Real Estate Fund
INVESTMENT INCOME
Dividends, net of foreign taxes withheld (1)	$	655,107		$	4,564		$	—		$	1,133,932		$	509,262		$	358,902
Dividends from mutual fund investments		58,743			90,222			44,886			2,309			1,241			29,795
Interest		—			3,084,390			3,669,615			106,705			36,942			24
Total Investment Income		713,850			3,179,176			3,714,501			1,242,946			547,445			388,721
EXPENSES
Advisory fees		284,816			365,387			290,358			465,595			341,495			196,847
Administration fees		99,686			213,142			169,376			171,535			132,804			62,633
Support services expenses		15,054			27,730			25,365			22,030			18,371			8,470
Custodian fees and expenses		113,131			37,820			25,736			23,425			24,134			19,713
Shareholder reports		5,000			10,801			8,599			8,800			6,497			3,399
Distribution and/or service fees
Class A		71,204			148,054			116,971			120,233			91,648			44,192
Class B		—			4,379			4,120			3,555			5,862			650
Class C		—			12,385			11,925			5,613			6,985			1,535
Transfer agency out-of-pocket expenses		12,843			27,836			22,712			22,655			16,798			8,731
Registration fees		370			17,309			18,219			17,189			16,676			16,879
Legal and audit fees		7,440			15,794			12,684			12,856			9,587			5,017
Trustees’ compensation and expenses		2,178			4,500			3,447			3,561			2,802			1,386
Other		34,731			37,229			12,148			8,988			6,892			4,887
Total Expenses		646,453			922,366			721,660			886,035			680,551			374,339
Adviser Reimbursement and Administrator Reduction		(204,989	)		(209,469	)		(153,112	)		(144,010	)		(120,729	)		(77,429	)
Net Expenses		441,464			712,897			568,548			742,025			559,822			296,910
NET INVESTMENT INCOME (LOSS)		272,386			2,466,279			3,145,953			500,921			(12,377	)		91,811
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investment security and forward transactions (1)		3,534,630			(108,227	)		(586,100	)		1,548,765			4,785,963			957,138
Closed short positions		—			(302,493	)		(5,919	)		—			—			—
Futures contracts and swap transactions		—			(1,630,315	)		(585,839	)		—			—			—
Written option transactions		—			268,367			23,961			—			—			—
Foreign currency transactions		(25,230	)		193,458			2,300			—			(664	)		—
Net Realized Gain (Loss)		3,509,400			(1,579,210	)		(1,151,597	)		1,548,765			4,785,299			957,138
Net change in unrealized appreciation (depreciation) on:
Investment securities and forwards (1)		7,688,826			521,255			972,279			(352,173	)		8,753,743			(3,709,926	)
Short positions		—			2,072			32,321			—			—			—
Futures contracts and swaps		—			2,226,220			244,579			—			—			—
Written options		—			(179,337	)		5,381			—			—			—
Foreign currencies		95,226			252,028			70,952			—			3,562			4,458
Change in Net Unrealized Appreciation (Depreciation)		7,784,052			2,822,238			1,325,512			(352,173	)		8,757,305			(3,705,468	)
NET GAIN (LOSS)		11,293,452			1,243,028			173,915			1,196,592			13,542,604			(2,748,330	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	11,565,838		$	3,709,307		$	3,319,868		$	1,697,513		$	13,530,227		($	2,656,519	)

(1) Dividends were net of $78,571, $0, $0, $9,629, $6,818 and $2,668 foreign taxes withheld respectively. Realized gains on investment security transactions for the PL Emerging Markets Fund are net of foreign capital gains tax withheld of $13,947. Change in unrealized appreciation (depreciation) on securities for the PL Emerging Markets Fund are net of decrease in deferred foreign capital gains tax of $10,721. No foreign tax was withheld on realized and change in unrealized capital gain for all other funds.

See Notes to Financial Statements B-9

PACIFIC LIFE FUNDS (1)
STATEMENTS OF CHANGES IN NET ASSETS

	PL Portfolio Optimization Conservative						PL Portfolio Optimization Moderate-Conservative						PL Portfolio Optimization Moderate						PL Portfolio Optimization Moderate-Aggressive
	Six-Month Period Ended September 30, 2007 (2)			Year Ended March 31, 2007			Six-Month Period Ended September 30, 2007 (2)			Year Ended March 31, 2007			Six-Month Period Ended September 30, 2007 (2)			Year Ended March 31, 2007			Six-Month Period Ended September 30, 2007 (2)			Year Ended March 31, 2007
OPERATIONS
Net investment income	$	398,717		$	610,470		$	775,480		$	1,261,250		$	2,018,321		$	3,131,298		$	935,022		$	1,899,603
Net realized gain		182,010			320,113			620,474			1,931,042			4,368,037			10,526,319			5,771,225			13,538,548
Net change in unrealized appreciation		563,975			527,778			2,802,290			2,079,162			15,935,963			10,394,610			21,002,978			13,512,652
Net Increase in Net Assets Resulting from Operations		1,144,702			1,458,361			4,198,244			5,271,454			22,322,321			24,052,227			27,709,225			28,950,803
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income
Class A		(68,255	)		(276,635	)		(135,304	)		(714,716	)		(341,700	)		(2,330,189	)		(40,632	)		(2,178,212	)
Class B		(10,030	)		(47,324	)		(21,498	)		(199,744	)		(25,542	)		(553,061	)		—			(661,394	)
Class C		(55,964	)		(276,985	)		(71,203	)		(515,437	)		(78,900	)		(1,710,064	)		—			(1,603,935	)
Class R (3)		(1,297	)		(4,497	)		(3,666	)		(27,637	)		(6,400	)		(25,977	)		—			(14,236	)
Net realized gains
Class A		(70,177	)		(170,635	)		(460,717	)		(698,767	)		(2,137,285	)		(3,157,475	)		(3,167,567	)		(3,094,854	)
Class B		(14,960	)		(34,753	)		(146,659	)		(236,827	)		(638,749	)		(1,006,839	)		(1,106,712	)		(1,180,927	)
Class C		(82,873	)		(207,525	)		(429,182	)		(626,210	)		(1,974,348	)		(2,967,863	)		(2,869,072	)		(2,891,629	)
Class R (3)		(1,450	)		(2,580	)		(15,297	)		(22,904	)		(47,230	)		(28,858	)		(25,367	)		(19,218	)
Net Decrease in Net Assets Resulting from Dividends and Distributions to Shareholders		(305,006	)		(1,020,934	)		(1,283,526	)		(3,042,242	)		(5,250,154	)		(11,780,326	)		(7,209,350	)		(11,644,405	)
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares
Class A		6,472,600			8,244,974			13,136,980			16,719,836			44,451,122			69,431,900			54,868,350			75,706,903
Class B		579,890			1,924,447			2,674,119			3,789,858			12,615,761			15,091,476			13,967,042			23,658,914
Class C		6,242,043			8,949,176			16,270,793			13,515,370			46,093,789			57,674,987			43,958,486			60,228,951
Class R (3)		569,265			215,421			190,186			1,282,297			4,077,725			2,517,639			1,248,734			1,042,626
Dividends and distribution reinvestments
Class A		118,367			388,145			552,561			1,304,546			2,315,899			5,038,616			3,048,606			4,984,854
Class B		23,049			79,301			153,355			391,087			628,317			1,471,898			1,066,916			1,776,996
Class C		129,323			442,950			467,144			1,045,705			1,946,287			4,410,655			2,763,257			4,348,738
Class R (3)		2,747			7,077			18,964			50,541			53,630			54,127			25,367			33,454
Cost of shares repurchased
Class A		(3,726,112	)		(6,958,344	)		(5,160,631	)		(10,974,539	)		(17,798,829	)		(25,148,034	)		(22,547,838	)		(23,061,870	)
Class B		(368,727	)		(1,152,537	)		(1,576,824	)		(1,452,821	)		(3,740,425	)		(6,142,133	)		(5,199,358	)		(6,476,394	)
Class C		(6,449,919	)		(4,630,408	)		(4,528,080	)		(8,824,004	)		(17,461,082	)		(21,181,437	)		(16,929,688	)		(18,389,160	)
Class R (3)		(13,714	)		(20,067	)		(119,791	)		(295,954	)		(1,170,705	)		(337,573	)		(142,767	)		(185,060	)
Net Increase in Net Assets from Capital Share Transactions		3,578,812			7,490,135			22,078,776			16,551,922			72,011,489			102,882,121			76,127,107			123,668,952
NET INCREASE IN NET ASSETS		4,418,508			7,927,562			24,993,494			18,781,134			89,083,656			115,154,022			96,626,982			140,975,350
NET ASSETS
Beginning of Year or Period		31,090,069			23,162,507			80,280,826			61,499,692			330,706,582			215,552,560			359,944,285			218,968,935
End of Year or Period	$	35,508,577		$	31,090,069		$	105,274,320		$	80,280,826		$	419,790,238		$	330,706,582		$	456,571,267		$	359,944,285
Undistributed Net Investment Income	$	397,251		$	134,080		$	771,755		$	227,946		$	2,005,811		$	440,032		$	921,957		$	27,567

(1)	See Note 1 to Financial Statements regarding name changes which occurred during the year ended March 31, 2007.
(2)	Unaudited.
(3)	Class R Shares are offered to the PL Portfolio Optimization Funds only.

See Notes to Financial Statements B-10

PACIFIC LIFE FUNDS (1)
STATEMENTS OF CHANGES IN NET ASSETS (Continued)

	PL Portfolio Optimization Aggressive						PL Money Market Fund						PL Small-Cap Growth Fund						PL International Value Fund
	Six-Month Period Ended September 30, 2007 (2)			Year Ended March 31, 2007			Six-Month Period Ended September 30, 2007 (2)			Year Ended March 31, 2007			Six-Month Period Ended September 30, 2007 (2)			Year Ended March 31, 2007			Six-Month Period Ended September 30, 2007 (2)			Year Ended March 31, 2007
OPERATIONS
Net investment income (loss)	($	168,978	)	$	265,579		$	542,118		$	850,796		($	211,396	)	($	244,037	)	$	997,034		$	663,858
Net realized gain (loss)		3,086,280			6,407,324			—			(70	)		5,770,843			15,580			2,037,891			12,471,038
Net change in unrealized appreciation (depreciation)		10,893,293			7,106,691			—			—			(694,515	)		1,522,847			4,575,374			(1,920,333	)
Net Increase in Net Assets Resulting from Operations		13,810,595			13,779,594			542,118			850,726			4,864,932			1,294,390			7,610,299			11,214,563
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income
Class A		—			(875,422	)		(542,147	)		(850,811	)		—			—			(138,633	)		(562,992	)
Class B		—			(222,743	)		—			—			—			—			—			(2,781	)
Class C		—			(515,305	)		—			—			—			—			—			(5,436	)
Class R (3)		—			(3,712	)		—			—			—			—			—			—
Net realized gains
Class A		(1,706,968	)		(1,686,286	)		—			—			(268,324	)		(25,606	)		—			(13,810,058	)
Class B		(535,694	)		(554,134	)		—			—			(2,574	)		(444	)		—			(124,102	)
Class C		(1,237,178	)		(1,255,129	)		—			—			(2,358	)		(614	)		—			(339,646	)
Class R (3)		(8,943	)		(4,288	)		—			—			—			—			—			—
Net Decrease in Net Assets Resulting from Dividends and Distributions to Shareholders		(3,488,783	)		(5,117,019	)		(542,147	)		(850,811	)		(273,256	)		(26,664	)		(138,633	)		(14,845,015	)
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares
Class A		32,993,349			39,855,610			32,584,404			54,952,403			4,757,641			23,266,818			29,612,271			17,809,230
Class B		8,789,038			10,620,731			—			—			28,992			63,917			63,452			175,895
Class C		27,735,124			28,678,605			—			—			34,585			179,302			89,286			346,992
Class R (3)		612,141			403,844			—			—			—			—			—			—
Dividends and distribution reinvestments
Class A		1,637,383			2,468,954			521,492			796,111			268,215			25,560			138,081			14,280,968
Class B		517,191			746,498			—			—			2,574			444			—			123,687
Class C		1,207,075			1,721,562			—			—			2,358			614			—			340,637
Class R (3)		8,940			8,000			—			—			—			—			—			—
Cost of shares repurchased
Class A		(11,375,813	)		(10,387,010	)		(27,358,877	)		(53,943,622	)		(243,305	)		(7,408,606	)		(1,720,238	)		(9,105,236	)
Class B		(3,484,403	)		(1,882,050	)		—			—			(69,890	)		(45,228	)		(110,908	)		(31,148	)
Class C		(9,626,294	)		(8,893,730	)		—			—			(117,842	)		(280,322	)		(258,680	)		(719,714	)
Class R (3)		(69,577	)		(49,623	)		—			—			—			—			—			—
Net Increase in Net Assets from Capital Share Transactions		48,944,154			63,291,391			5,747,019			1,804,892			4,663,328			15,802,499			27,813,264			23,221,311
NET INCREASE IN NET ASSETS		59,265,966			71,953,966			5,746,990			1,804,807			9,255,004			17,070,225			35,284,930			19,590,859
NET ASSETS
Beginning of Year or Period		155,033,276			83,079,310			21,097,592			19,292,785			42,251,561			25,181,336			79,223,183			59,632,324
End of Year or Period	$	214,299,242		$	155,033,276		$	26,844,582		$	21,097,592		$	51,506,565		$	42,251,561		$	114,508,113		$	79,223,183
Undistributed/Accumulated Net Investment Income (Loss)	($	173,957	)	($	4,979	)	$	8,780		$	8,809		($	216,549	)	($	5,153	)	$	951,912		$	93,511

(1)	See Note 1 to Financial Statements regarding name changes which occurred during the year ended March 31, 2007.
(2)	Unaudited.
(3)	Class R shares are offered to the PL Portfolio Optimization Funds only.

See Notes to Financial Statements B-11

PACIFIC LIFE FUNDS (1)
STATEMENTS OF CHANGES IN NET ASSETS (Continued)

	PL Large-Cap Value Fund						PL Short Duration Bond Fund						PL Growth LT Fund						PL Mid-Cap Value Fund
	Six-Month Period Ended September 30, 2007 (2)			Year Ended March 31, 2007			Six-Month Period Ended September 30, 2007 (2)			Year Ended March 31, 2007			Six-Month Period Ended September 30, 2007 (2)			Year Ended March 31, 2007			Six-Month Period Ended September 30, 2007 (2)			Year Ended March 31, 2007
OPERATIONS
Net investment income (loss)	$	188,634		$	219,669		$	1,360,502		$	1,781,647		$	30,144		($	49,124	)	$	110,810		($	3,539	)
Net realized gain (loss)		553,155			1,393,173			342,417			(137,798	)		703,693			942,367			4,741,801			4,622,649
Net change in unrealized appreciation (depreciation)		2,620,549			3,751,758			507,496			434,733			6,480,970			3,198,340			(3,748,705	)		4,064,941
Net Increase in Net Assets Resulting from Operations		3,362,338			5,364,600			2,210,415			2,078,582			7,214,807			4,091,583			1,103,906			8,684,051
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income
Class A		(59,117	)		(142,190	)		(1,347,360	)		(1,757,347	)		—			—			—			—
Class B		—			—			(642	)		(829	)		—			—			—			—
Class C		—			—			(3,088	)		(11,144	)		—			—			—			—
Net realized gains
Class A		(413,825	)		(3,184,094	)		—			—			(267,763	)		(415,079	)		(3,765,712	)		(1,529,217	)
Class B		(4,585	)		(48,680	)		—			—			(1,803	)		(3,360	)		(4,610	)		(3,018	)
Class C		(9,745	)		(145,262	)		—			—			(2,697	)		(8,973	)		(13,097	)		(6,679	)
Net Decrease in Net Assets Resulting from Dividends and Distributions to Shareholders		(487,272	)		(3,520,226	)		(1,351,090	)		(1,769,320	)		(272,263	)		(427,412	)		(3,783,419	)		(1,538,914	)
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares
Class A		9,107,922			19,340,872			10,053,474			27,653,904			9,975,615			21,131,131			11,257,090			39,592,797
Class B		39,259			93,219			173			32,150			31,085			59,648			11,921			25,010
Class C		25,708			473,500			16,417			614,506			23,889			518,612			23,157			129,342
Dividends and distribution reinvestments
Class A		472,089			3,307,859			1,347,360			1,757,347			267,496			414,498			3,765,709			1,528,174
Class B		4,585			48,496			639			709			1,798			3,351			4,552			2,976
Class C		9,343			141,759			3,051			11,076			2,561			8,716			13,094			6,253
Cost of shares repurchased
Class A		(1,315,395	)		(2,272,360	)		(502,731	)		(7,842,318	)		(1,147,153	)		(6,874,064	)		(1,100,838	)		(1,049,855	)
Class B		(83,502	)		(49,531	)		(976	)		(8,228	)		(54,349	)		(57,865	)		(42,052	)		(5,146	)
Class C		(223,803	)		(720,101	)		(267,967	)		(779,397	)		(152,715	)		(732,124	)		(34,162	)		(29,389	)
Net Increase in Net Assets from Capital Share Transactions		8,036,206			20,363,713			10,649,440			21,439,749			8,948,227			14,471,903			13,898,471			40,200,162
NET INCREASE IN NET ASSETS		10,911,272			22,208,087			11,508,765			21,749,011			15,890,771			18,136,074			11,218,958			47,345,299
NET ASSETS
Beginning of Year or Period		58,839,562			36,631,475			67,302,723			45,553,712			63,173,830			45,037,756			71,528,389			24,183,090
End of Year or Period	$	69,750,834		$	58,839,562		$	78,811,488		$	67,302,723		$	79,064,601		$	63,173,830		$	82,747,347		$	71,528,389
Undistributed/Accumulated Net Investment Income (Loss)	$	177,336		$	47,819		$	19,774		$	10,362		$	17,207		($	12,937	)	$	108,819		($	1,991	)

(1)	See Note 1 to Financial Statements regarding name changes which occurred during the year ended March 31, 2007.
(2)	Unaudited.

See Notes to Financial Statements B-12

PACIFIC LIFE FUNDS (1)
STATEMENTS OF CHANGES IN NET ASSETS (Continued)

	PL Large-Cap Growth Fund						PL International Large-Cap Fund						PL Small-Cap Value Fund (2)			PL Main Street Core Fund
	Six-Month Period Ended September 30, 2007 (3)			Year Ended March 31, 2007			Six-Month Period Ended September 30, 2007 (3)			Year Ended March 31, 2007			Period Ended September 30, 2007 (3)			Six-Month Period Ended September 30, 2007 (3)			Year Ended March 31, 2007
OPERATIONS
Net investment income (loss)	($	157,007	)	($	234,053	)	$	1,024,293		$	1,097,036		$	42,777		$	313,257		$	359,261
Net realized gain (loss)		1,567,763			(2,236,847	)		1,148,408			5,522,928			(41,199	)		2,719,432			1,783,743
Net change in unrealized appreciation (depreciation)		2,564,196			1,980,347			2,781,263			4,207,200			(202,812	)		5,493,428			3,915,571
Net Increase (Decrease) in Net Assets Resulting from Operations		3,974,952			(490,553	)		4,953,964			10,827,164			(201,234	)		8,526,117			6,058,575
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income
Class A		—			—			—			(1,185,122	)		—			(189,393	)		(196,087	)
Class B		—			—			—			(9,355	)		—			—			—
Class C		—			—			—			(12,735	)		—			—			—
Net realized gains
Class A		—			(1,924,708	)		(2,296,686	)		(4,861,022	)		—			(1,805,827	)		(906,200	)
Class B		—			(52,141	)		(18,354	)		(44,159	)		—			—			—
Class C		—			(112,916	)		(23,532	)		(75,957	)		—			—			—
Net Decrease in Net Assets Resulting from Dividends and Distributions to Shareholders		—			(2,089,765	)		(2,338,572	)		(6,188,350	)		—			(1,995,220	)		(1,102,287	)
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares
Class A		2,514,336			14,786,880			11,993,054			20,900,912			15,753,317			14,498,181			31,238,042
Class B		17,655			21,517			64,073			217,066			—			—			—
Class C		47,500			187,864			59,455			471,697			—			—			—
Dividends and distribution reinvestments
Class A		—			1,919,528			2,293,504			6,024,062			—			1,995,220			1,102,287
Class B		—			49,084			18,330			53,514			—			—			—
Class C		—			105,750			23,164			86,997			—			—			—
Cost of shares repurchased
Class A		(840,078	)		(4,108,738	)		(1,616,295	)		(7,377,448	)		(259,253	)		(1,580,531	)		(4,090,073	)
Class B		(33,695	)		(150,894	)		(77,952	)		(74,982	)		—			—			—
Class C		(160,300	)		(880,473	)		(174,785	)		(629,647	)		—			—			—
Net Increase in Net Assets from Capital Share Transactions		1,545,418			11,930,518			12,582,548			19,672,171			15,494,064			14,912,870			28,250,256
NET INCREASE IN NET ASSETS		5,520,370			9,350,200			15,197,940			24,310,985			15,292,830			21,443,767			33,206,544
NET ASSETS
Beginning of Year or Period		30,964,189			21,613,989			78,372,472			54,061,487			—			87,136,259			53,929,715
End of Year or Period	$	36,484,559		$	30,964,189		$	93,570,412		$	78,372,472		$	15,292,830		$	108,580,026		$	87,136,259
Undistributed/Accumulated Net Investment Income (Loss)	($	171,681	)	($	14,674	)	$	1,017,870		($	6,423	)	$	42,777		$	310,760		$	186,896

(1)	See Note 1 to Financial Statements regarding name changes which occurred during the year ended March 31, 2007.
(2)	Operations commenced on June 29, 2007.
(3)	Unaudited.

See Notes to Financial Statements B-13

PACIFIC LIFE FUNDS(1)

STATEMENTS OF CHANGES IN NET ASSETS (Continued)

	PL Emerging Markets Fund						PL Managed Bond Fund						PL Inflation Managed Fund						PL Comstock Fund
	Six-Month Period Ended September 30, 2007 (2)			Year Ended March 31, 2007			Six-Month Period Ended September 30, 2007 (2)			Year Ended March 31, 2007			Six-Month Period Ended September 30, 2007 (2)			Year Ended March 31, 2007			Six-Month Period Ended September 30, 2007 (2)			Year Ended March 31, 2007
OPERATIONS
Net investment income	$	272,386		$	197,308		$	2,466,279		$	2,970,180		$	3,145,953		$	1,850,586		$	500,921		$	639,060
Net realized gain (loss)		3,509,400			1,328,570			(1,579,210	)		530,618			(1,151,597	)		(868,148	)		1,548,765			1,323,581
Net change in unrealized appreciation (depreciation)		7,784,052			4,953,183			2,822,238			1,419,643			1,325,512			1,887,100			(352,173	)		6,378,532
Net Increase in Net Assets Resulting from Operations		11,565,838			6,479,061			3,709,307			4,920,441			3,319,868			2,869,538			1,697,513			8,341,173
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income
Class A		—			(148,762	)		(1,235,073	)		(3,244,606	)		(2,764,458	)		(1,759,350	)		(182,808	)		(568,291	)
Class B		—			—			(5,800	)		(30,225	)		(20,964	)		(25,531	)		(96	)		(2,315	)
Class C		—			—			(16,248	)		(79,226	)		(59,821	)		(77,259	)		—			(5,041	)
Net realized gains
Class A		(964,371	)		(1,810,425	)		(156,804	)		—			—			—			(1,029,668	)		(1,941,310	)
Class B		—			—			(1,161	)		—	��		—			—			(7,947	)		(17,085	)
Class C		—			—			(3,392	)		—			—			—			(12,507	)		(30,943	)
Net Decrease in Net Assets Resulting from Dividends and Distributions to Shareholders		(964,371	)		(1,959,187	)		(1,418,478	)		(3,354,057	)		(2,845,243	)		(1,862,140	)		(1,233,026	)		(2,564,985	)
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares
Class A		2,068,328			12,001,372			37,976,911			37,823,707			19,500,354			31,755,968			26,383,287			25,968,437
Class B		—			—			10,931			38,698			2,593			57,177			38,450			132,744
Class C		—			—			250,342			1,090,326			7,940			372,446			37,503			668,211
Dividends and distribution reinvestments
Class A		964,371			1,959,187			1,382,972			3,206,949			2,757,110			1,721,013			1,211,678			2,507,408
Class B		—			—			6,519			28,341			18,788			22,151			8,062			19,400
Class C		—			—			18,705			74,986			52,290			66,839			12,061			34,685
Cost of shares repurchased
Class A		(11,055,162	)		(579,704	)		(5,006,926	)		(9,426,778	)		(1,814,334	)		(18,197,720	)		(1,927,303	)		(12,768,536	)
Class B		—			—			(75,128	)		(218,228	)		(92,872	)		(596,984	)		(45,149	)		(51,551	)
Class C		—			—			(518,689	)		(644,251	)		(576,530	)		(1,877,191	)		(235,867	)		(535,960	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(8,022,463	)		13,380,855			34,045,637			31,973,750			19,855,339			13,323,699			25,482,722			15,974,838
NET INCREASE IN NET ASSETS		2,579,004			17,900,729			36,336,466			33,540,134			20,329,964			14,331,097			25,947,209			21,751,026
NET ASSETS
Beginning of Year or Period		51,376,494			33,475,765			105,496,760			71,956,626			85,978,183			71,647,086			85,668,386			63,917,360
End of Year or Period	$	53,955,498		$	51,376,494		$	141,833,226		$	105,496,760		$	106,308,147		$	85,978,183		$	111,615,595		$	85,668,386
Undistributed/Accumulated Net Investment Income (Loss)	$	248,621		($	23,765	)	$	1,362,859		$	153,701		$	816,770		$	516,060		$	493,480		$	175,463

(1)	See Note 1 to Financial Statements regarding name changes which occurred during the year ended March 31, 2007.
(2)	Unaudited.

See Notes to Financial Statements B-14

PACIFIC LIFE FUNDS (1)
STATEMENTS OF CHANGES IN NET ASSETS (Continued)

	PL Mid-Cap Growth Fund						PL Real Estate Fund
	Six-Month Period Ended September 30, 2007 (2)			Year Ended March 31, 2007			Six-Month Period Ended September 30, 2007 (2)			Year Ended March 31, 2007
OPERATIONS
Net investment income (loss)	($	12,377	)	($	351,664	)	$	91,811		$	71,920
Net realized gain		4,785,299			4,336,334			957,138			2,694,146
Net change in unrealized appreciation (depreciation)		8,757,305			(1,275,265	)		(3,705,468	)		2,814,035
Net Increase (Decrease) in Net Assets Resulting from Operations		13,530,227			2,709,405			(2,656,519	)		5,580,101
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income
Class A		—			—			(236,256	)		(82,984	)
Class B		—			—			(159	)		(176	)
Class C		—			—			(749	)		(589	)
Net realized gains
Class A		(2,652,144	)		(3,998,837	)		(1,215,133	)		(1,757,906	)
Class B		(43,607	)		(86,024	)		(4,108	)		(10,121	)
Class C		(51,885	)		(198,846	)		(10,337	)		(16,905	)
Net Decrease in Net Assets Resulting from Dividends and Distributions to Shareholders		(2,747,636	)		(4,283,707	)		(1,466,742	)		(1,868,681	)
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares
Class A		5,039,359			22,972,484			9,715,066			7,222,674
Class B		65,441			231,125			5,866			131,633
Class C		88,794			319,912			72,253			268,665
Dividends and distribution reinvestments
Class A		2,646,942			3,985,850			1,451,389			1,839,694
Class B		39,327			74,680			4,265			10,297
Class C		50,125			189,658			11,059			17,226
Cost of shares repurchased	��
Class A		(519,219	)		(2,156,944	)		(650,273	)		(6,780,443	)
Class B		(65,893	)		(118,278	)		(68,363	)		(80,362	)
Class C		(387,837	)		(1,343,352	)		(83,275	)		(89,810	)
Net Increase in Net Assets from
Capital Share Transactions		6,957,039			24,155,135			10,457,987			2,539,574
NET INCREASE IN NET ASSETS		17,739,630			22,580,833			6,334,726			6,250,994
NET ASSETS
Beginning of Year or Period		65,967,931			43,387,098			32,014,083			25,763,089
End of Year or Period	$	83,707,561		$	65,967,931		$	38,348,809		$	32,014,083
Accumulated Net Investment Loss	($	206,521	)	($	194,144	)	($	179,732	)	($	34,379	)

(1)	See Note 1 to Financial Statements regarding name changes which occurred during the year ended March 31, 2007.
(2)	Unaudited.

See Notes to Financial Statements B-15

PACIFIC LIFE FUNDS**
FINANCIAL HIGHLIGHTS
Selected per share, ratios and supplemental data for each year or period ended were as follows:

				Investment Activities							Distributions											Ratios/Supplemental Data
For the Year or Period Ended		Net Asset Value, Beginning of Year or Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain		Total from Investment Operations		Distributions from Net Investment Income			Distributions from Capital Gains			Total Distributions			Net Asset Value, End of Year or Period		Total Returns (1)			Net Assets, End of Year or Period (in thousands)		Ratios of Expenses After Expense Reductions to Average Net Assets (2), (3)			Ratios of Expenses Before Expense Reductions to Average Net Assets (3)			Ratios of Net Investment Income (Loss) to Average Net Assets (3)			Portfolio Turnover Rates
PL Portfolio Optimization Conservative
Class A:	4/1/2007 - 9/30/2007 (4),(5)	$	10.51	$	0.15		$	0.22	$	0.37	($	0.05	)	($	0.06	)	($	0.11	)	$	10.77		3.56	%	$	14,943		0.00	%		0.99	%		2.92	%		23.23	%
	4/1/2006 - 3/31/2007 (4)		10.34		0.29			0.33		0.62		(0.28	)		(0.17	)		(0.45	)		10.51		6.12	%		11,730		0.02	%		1.37	%		2.77	%		35.84	%
	4/1/2005 - 3/31/2006 (4)		10.18		0.22			0.20		0.42		(0.23	)		(0.03	)		(0.26	)		10.34		4.12	%		9,887		0.03	%		1.57	%		2.17	%		66.26	%
	4/1/2004 - 3/31/2005 (4)		10.15		0.13			0.05		0.18		(0.13	)		(0.02	)		(0.15	)		10.18		1.74	%		8,262		0.00	%		2.35	%		1.29	%		20.21	%
	12/31/2003 - 3/31/2004 (4)		10.00		0.02			0.13		0.15		—			—			—			10.15		1.50	%		1,957		0.00	%		4.50	%		0.61	%		9.38	%
Class B:	4/1/2007 - 9/30/2007 (4),(5)	$	10.46	$	0.11		$	0.23	$	0.34	($	0.04	)	($	0.06	)	($	0.10	)	$	10.70		3.21	%	$	3,125		0.75	%		1.74	%		2.17	%		23.23	%
	4/1/2006 - 3/31/2007 (4)		10.30		0.23			0.33		0.56		(0.23	)		(0.17	)		(0.40	)		10.46		5.52	%		2,822		0.58	%		1.93	%		2.20	%		35.84	%
	4/1/2005 - 3/31/2006 (4)		10.14		0.17			0.20		0.37		(0.18	)		(0.03	)		(0.21	)		10.30		3.56	%		1,923		0.53	%		2.07	%		1.67	%		66.26	%
	4/1/2004 - 3/31/2005 (4)		10.14		0.08			0.04		0.12		(0.10	)		(0.02	)		(0.12	)		10.14		1.25	%		1,450		0.50	%		2.85	%		0.79	%		20.21	%
	12/31/2003 - 3/31/2004 (4)		10.00		—	(6)		0.14		0.14		—			—			—			10.14		1.40	%		449		0.50	%		5.00	%		0.11	%		9.38	%
Class C:	4/1/2007 - 9/30/2007 (4),(5)	$	10.45	$	0.11		$	0.23	$	0.34	($	0.04	)	($	0.06	)	($	0.10	)	$	10.69		3.22	%	$	16,660		0.75	%		1.74	%		2.17	%		23.23	%
	4/1/2006 - 3/31/2007 (4)		10.29		0.23			0.33		0.56		(0.23	)		(0.17	)		(0.40	)		10.45		5.55	%		16,322		0.58	%		1.93	%		2.20	%		35.84	%
	4/1/2005 - 3/31/2006 (4)		10.13		0.17			0.20		0.37		(0.18	)		(0.03	)		(0.21	)		10.29		3.65	%		11,342		0.53	%		2.07	%		1.67	%		66.26	%
	4/1/2004 - 3/31/2005 (4)		10.13		0.08			0.04		0.12		(0.10	)		(0.02	)		(0.12	)		10.13		1.18	%		8,908		0.50	%		2.85	%		0.79	%		20.21	%
	12/31/2003 - 3/31/2004 (4)		10.00		—	(6)		0.13		0.13		—			—			—			10.13		1.30	%		3,739		0.50	%		5.00	%		0.11	%		9.38	%
Class R:	4/1/2007 - 9/30/2007 (4),(5)	$	10.50	$	0.14		$	0.22	$	0.36	($	0.05	)	($	0.06	)	($	0.11	)	$	10.75		3.42	%	$	782		0.25	%		1.24	%		2.67	%		23.23	%
	4/1/2006 - 3/31/2007 (4)		10.33		0.28			0.34		0.62		(0.28	)		(0.17	)		(0.45	)		10.50		6.13	%		216		0.10	%		1.43	%		2.68	%		35.84	%
	9/30/2005 - 3/31/2006 (4)		10.35		0.11			0.09		0.20		(0.21	)		(0.01	)		(0.22	)		10.33		1.90	%		10		0.03	%		1.57	%		2.17	%		66.26	%
PL Portfolio Optimization Moderate-Conservative
Class A:	4/1/2007 - 9/30/2007 (4),(5)	$	11.21	$	0.12		$	0.43	$	0.55	($	0.04	)	($	0.13	)	($	0.17	)	$	11.59		4.94	%	$	46,208		0.00	%		0.83	%		2.11	%		2.39	%
	4/1/2006 - 3/31/2007 (4)		10.87		0.23			0.61		0.84		(0.25	)		(0.25	)		(0.50	)		11.21		7.93	%		36,345		0.01	%		1.18	%		2.13	%		18.25	%
	4/1/2005 - 3/31/2006 (4)		10.33		0.18			0.57		0.75		(0.19	)		(0.02	)		(0.21	)		10.87		7.23	%		28,292		0.02	%		1.32	%		1.72	%		37.91	%
	4/1/2004 - 3/31/2005 (4)		10.14		0.11			0.22		0.33		(0.12	)		(0.02	)		(0.14	)		10.33		3.28	%		19,664		0.00	%		1.74	%		1.05	%		7.82	%
	12/31/2003 - 3/31/2004 (4)		10.00		0.01			0.13		0.14		—			—			—			10.14		1.40	%		5,197		0.00	%		2.86	%		0.46	%		2.81	%
Class B:	4/1/2007 - 9/30/2007 (4),(5)	$	11.15	$	0.08		$	0.43	$	0.51	($	0.02	)	($	0.13	)	($	0.15	)	$	11.51		4.61	%	$	13,752		0.75	%		1.58	%		1.36	%		2.39	%
	4/1/2006 - 3/31/2007 (4)		10.82		0.17			0.61		0.78		(0.20	)		(0.25	)		(0.45	)		11.15		7.39	%		12,098		0.58	%		1.75	%		1.56	%		18.25	%
	4/1/2005 - 3/31/2006 (4)		10.29		0.13			0.56		0.69		(0.14	)		(0.02	)		(0.16	)		10.82		6.70	%		9,058		0.52	%		1.82	%		1.22	%		37.91	%
	4/1/2004 - 3/31/2005 (4)		10.13		0.06			0.21		0.27		(0.09	)		(0.02	)		(0.11	)		10.29		2.69	%		6,699		0.50	%		2.24	%		0.55	%		7.82	%
	12/31/2003 - 3/31/2004 (4)		10.00		(—)	(6)		0.13		0.13		—			—			—			10.13		1.30	%		3,013		0.50	%		3.36	%		(0.04	%)		2.81	%
Class C:	4/1/2007 - 9/30/2007 (4),(5)	$	11.16	$	0.08		$	0.42	$	0.50	($	0.02	)	($	0.13	)	($	0.15	)	$	11.51		4.54	%	$	43,807		0.75	%		1.58	%		1.36	%		2.39	%
	4/1/2006 - 3/31/2007 (4)		10.83		0.17			0.61		0.78		(0.20	)		(0.25	)		(0.45	)		11.16		7.38	%		30,464		0.58	%		1.75	%		1.56	%		18.25	%
	4/1/2005 - 3/31/2006 (4)		10.29		0.13			0.57		0.70		(0.14	)		(0.02	)		(0.16	)		10.83		6.80	%		23,860		0.52	%		1.82	%		1.22	%		37.91	%
	4/1/2004 - 3/31/2005 (4)		10.13		0.06			0.21		0.27		(0.09	)		(0.02	)		(0.11	)		10.29		2.70	%		15,375		0.50	%		2.24	%		0.55	%		7.82	%
	12/31/2003 - 3/31/2004 (4)		10.00		(—)	(6)		0.13		0.13		—			—			—			10.13		1.30	%		5,354		0.50	%		3.36	%		(0.04	%)		2.81	%
Class R:	4/1/2007 - 9/30/2007 (4),(5)	$	11.20	$	0.11		$	0.42	$	0.53	($	0.03	)	($	0.13	)	($	0.16	)	$	11.57		4.79	%	$	1,508		0.25	%		1.08	%		1.86	%		2.39	%
	4/1/2006 - 3/31/2007 (4)		10.87		0.22			0.61		0.83		(0.25	)		(0.25	)		(0.50	)		11.20		7.84	%		1,373		0.10	%		1.25	%		2.04	%		18.25	%
	9/30/2005 - 3/31/2006 (4)		10.67		0.09			0.29		0.38		(0.17	)		(0.01	)		(0.18	)		10.87		3.63	%		290		0.02	%		1.32	%		1.72	%		37.91	%

See Notes to Financial Statements C-1 See explanation of references and symbols on C-11

PACIFIC LIFE FUNDS**
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period ended were as follows:

				Investment Activities							Distributions											Ratios/Supplemental Data
For the Year or Period Ended		Net Asset Value, Beginning of Year or Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain		Total from Investment Operations		Distributions from Net Investment Income			Distributions from Capital Gains			Total Distributions			Net Asset Value, End of Year or Period		Total Returns (1)			Net Assets, End of Year or Period (in thousands)		Ratios of Expenses After Expense Reductions to Average Net Assets (2), (3)			Ratios of Expenses Before Expense Reductions to Average Net Assets (3)			Ratios of Net Investment Income (Loss) to Average Net Assets (3)			Portfolio Turnover Rates
PL Portfolio Optimization Moderate
Class A:	4/1/2007 - 9/30/2007 (4),(5)	$	12.08	$	0.09		$	0.68	$	0.77	($	0.03	)	($	0.16	)	($	0.19	)	$	12.66		6.36	%	$	186,711		0.00	%		0.77	%		1.49	%		0.02	%
	4/1/2006 - 3/31/2007 (4)		11.56		0.18			0.88		1.06		(0.22	)		(0.32	)		(0.54	)		12.08		9.41	%		149,905		0.00	%		1.06	%		1.51	%		8.24	%
	4/1/2005 - 3/31/2006 (4)		10.54		0.15			1.06		1.21		(0.16	)		(0.03	)		(0.19	)		11.56		11.58	%		95,079		0.00	%		1.20	%		1.33	%		26.54	%
	4/1/2004 - 3/31/2005 (4)		10.14		0.08			0.43		0.51		(0.09	)		(0.02	)		(0.11	)		10.54		5.09	%		53,783		0.00	%		1.41	%		0.82	%		5.78	%
	12/31/2003 - 3/31/2004 (4)		10.00		0.01			0.13		0.14		—			—			—			10.14		1.40	%		12,743		0.00	%		2.31	%		0.36	%		0.86	%
Class B:	4/1/2007 - 9/30/2007 (4),(5)	$	12.02	$	0.05		$	0.67	$	0.72	($	0.01	)	($	0.16	)	($	0.17	)	$	12.57		5.98	%	$	55,507		0.75	%		1.52	%		0.74	%		0.02	%
	4/1/2006 - 3/31/2007 (4)		11.51		0.11			0.89		1.00		(0.17	)		(0.32	)		(0.49	)		12.02		8.88	%		43,774		0.57	%		1.63	%		0.94	%		8.24	%
	4/1/2005 - 3/31/2006 (4)		10.50		0.09			1.07		1.16		(0.12	)		(0.03	)		(0.15	)		11.51		11.10	%		31,687		0.50	%		1.70	%		0.83	%		26.54	%
	4/1/2004 - 3/31/2005 (4)		10.13		0.03			0.43		0.46		(0.07	)		(0.02	)		(0.09	)		10.50		4.55	%		19,414		0.50	%		1.91	%		0.32	%		5.78	%
	12/31/2003 - 3/31/2004 (4)		10.00		(—	)(6)		0.13		0.13		—			—			—			10.13		1.30	%		5,594		0.50	%		2.81	%		(0.14	%)		0.86	%
Class C:	4/1/2007 - 9/30/2007 (4),(5)	$	12.00	$	0.05		$	0.68	$	0.73	($	0.01	)	($	0.16	)	($	0.17	)	$	12.56		6.07	%	$	172,124		0.75	%		1.52	%		0.74	%		0.02	%
	4/1/2006 - 3/31/2007 (4)		11.50		0.11			0.88		0.99		(0.17	)		(0.32	)		(0.49	)		12.00		8.82	%		134,695		0.57	%		1.63	%		0.94	%		8.24	%
	4/1/2005 - 3/31/2006 (4)		10.49		0.09			1.07		1.16		(0.12	)		(0.03	)		(0.15	)		11.50		11.12	%		88,774		0.50	%		1.70	%		0.83	%		26.54	%
	4/1/2004 - 3/31/2005 (4)		10.12		0.03			0.43		0.46		(0.07	)		(0.02	)		(0.09	)		10.49		4.53	%		52,510		0.50	%		1.91	%		0.32	%		5.78	%
	12/31/2003 - 3/31/2004 (4)		10.00		(—	)(6)		0.12		0.12		—			—			—			10.12		1.20	%		16,870		0.50	%		2.81	%		(0.14	%)		0.86	%
Class R:	4/1/2007 - 9/30/2007 (4),(5)	$	12.06	$	0.08		$	0.67	$	0.75	($	0.02	)	($	0.16	)	($	0.18	)	$	12.63		6.26	%	$	5,448		0.25	%		1.02	%		1.24	%		0.02	%
	4/1/2006 - 3/31/2007 (4)		11.56		0.16			0.88		1.04		(0.22	)		(0.32	)		(0.54	)		12.06		9.24	%		2,332		0.11	%		1.13	%		1.40	%		8.24	%
	9/30/2005 - 3/31/2006 (4)		11.05		0.07			0.60		0.67		(0.15	)		(0.01	)		(0.16	)		11.56		6.16	%		13		0.00	%		1.20	%		1.33	%		26.54	%
PL Portfolio Optimization Moderate-Aggressive
Class A:	4/1/2007 - 9/30/2007 (4),(5)	$	12.74	$	0.06		$	0.87	$	0.93	($	—	)(6)	($	0.23	)	($	0.23	)	$	13.44		7.33	%	$	203,525		0.00	%		0.77	%		0.87	%		0.87	%
	4/1/2006 - 3/31/2007 (4)		12.02		0.12			1.12		1.24		(0.20	)		(0.32	)		(0.52	)		12.74		10.57	%		158,754		0.00	%		1.05	%		1.02	%		6.96	%
	4/1/2005 - 3/31/2006 (4)		10.66		0.10			1.44		1.54		(0.13	)		(0.05	)		(0.18	)		12.02		14.59	%		93,498		0.00	%		1.19	%		0.86	%		27.98	%
	4/1/2004 - 3/31/2005 (4)		10.11		0.05			0.58		0.63		(0.06	)		(0.02	)		(0.08	)		10.66		6.26	%		43,986		0.00	%		1.43	%		0.52	%		10.16	%
	12/31/2003 - 3/31/2004 (4)		10.00		0.01			0.10		0.11		—			—			—			10.11		1.10	%		13,362		0.00	%		2.47	%		0.22	%		0.68	%
Class B:	4/1/2007 - 9/30/2007 (4),(5)	$	12.67	$	0.01		$	0.87	$	0.88	$	—		($	0.23	)	($	0.23	)	$	13.32		6.95	%	$	69,892		0.75	%		1.52	%		0.12	%		0.87	%
	4/1/2006 - 3/31/2007 (4)		11.97		0.05			1.13		1.18		(0.16	)		(0.32	)		(0.48	)		12.67		10.11	%		56,938		0.57	%		1.62	%		0.44	%		6.96	%
	4/1/2005 - 3/31/2006 (4)		10.63		0.04			1.45		1.49		(0.10	)		(0.05	)		(0.15	)		11.97		14.09	%		35,154		0.50	%		1.69	%		0.36	%		27.98	%
	4/1/2004 - 3/31/2005 (4)		10.10		—	(6)		0.58		0.58		(0.03	)		(0.02	)		(0.05	)		10.63		5.79	%		18,954		0.50	%		1.93	%		0.02	%		10.16	%
	12/31/2003 - 3/31/2004 (4)		10.00		(0.01	)		0.11		0.10		—			—			—			10.10		1.00	%		6,962		0.50	%		2.97	%		(0.28	%)		0.68	%
Class C:	4/1/2007 - 9/30/2007 (4),(5)	$	12.65	$	0.01		$	0.87	$	0.88	$	—		($	0.23	)	($	0.23	)	$	13.30		6.96	%	$	180,987		0.75	%		1.52	%		0.12	%		0.87	%
	4/1/2006 - 3/31/2007 (4)		11.95		0.05			1.13		1.18		(0.16	)		(0.32	)		(0.48	)		12.65		10.12	%		143,281		0.57	%		1.62	%		0.44	%		6.96	%
	4/1/2005 - 3/31/2006 (4)		10.61		0.04			1.45		1.49		(0.10	)		(0.05	)		(0.15	)		11.95		14.13	%		90,306		0.50	%		1.69	%		0.36	%		27.98	%
	4/1/2004 - 3/31/2005 (4)		10.09		—	(6)		0.57		0.57		(0.03	)		(0.02	)		(0.05	)		10.61		5.72	%		48,159		0.50	%		1.93	%		0.02	%		10.16	%
	12/31/2003 - 3/31/2004 (4)		10.00		(0.01	)		0.10		0.09		—			—			—			10.09		0.90	%		12,719		0.50	%		2.97	%		(0.28	%)		0.68	%
Class R:	4/1/2007 - 9/30/2007 (4),(5)	$	12.74	$	0.04		$	0.89	$	0.93	$	—		($	0.23	)	($	0.23	)	$	13.44		7.31	%	$	2,167		0.25	%		1.02	%		0.62	%		0.87	%
	4/1/2006 - 3/31/2007 (4)		12.02		0.11			1.13		1.24		(0.20	)		(0.32	)		(0.52	)		12.74		10.57	%		971		0.10	%		1.12	%		0.92	%		6.96	%
	9/30/2005 - 3/31/2006 (4)		11.28		0.05			0.83		0.88		(0.13	)		(0.01	)		(0.14	)		12.02		7.92	%		11		0.00	%		1.19	%		0.86	%		27.98	%

See Notes to Financial Statements C-2 See explanation of references and symbols on C-11

PACIFIC LIFE FUNDS**
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period ended were as follows:

				Investment Activities								Distributions												Ratios/Supplemental Data
For the Year or Period Ended		Net Asset Value, Beginning of Year or Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain		Total from Investment Operations			Distributions from Net Investment Income			Distributions from Capital Gains			Total Distributions			Net Asset Value, End of Year or Period			Total Returns (1)			Net Assets, End of Year or Period (in thousands)		Ratios of Expenses After Expense Reductions to Average Net Assets (2), (3)			Ratios of Expenses Before Expense Reductions to Average Net Assets (3)			Ratios of Net Investment Income (Loss) to Average Net Assets (3)			Portfolio Turnover Rates
PL Portfolio Optimization Aggressive
Class A:	4/1/2007 - 9/30/2007 (4),(5)	$	13.49	$	0.01		$	1.09	$	1.10		$	—		($	0.26	)	($	0.26	)	$	14.33			8.22	%	$	103,984		0.00	%		0.79	%		0.20	%		1.55	%
	4/1/2006 - 3/31/2007 (4)		12.57		0.07			1.46		1.53			(0.19	)		(0.42	)		(0.61	)		13.49			12.53	%		75,546		0.00	%		1.09	%		0.54	%		10.14	%
	4/1/2005 - 3/31/2006 (4)		10.75		0.05			1.94		1.99			(0.11	)		(0.06	)		(0.17	)		12.57			18.59	%		39,397		0.00	%		1.29	%		0.42	%		42.51	%
	4/1/2004 - 3/31/2005 (4)		10.08		0.02			0.70		0.72			(0.02	)		(0.03	)		(0.05	)		10.75			7.17	%		18,244		0.00	%		1.75	%		0.23	%		22.37	%
	12/31/2003 - 3/31/2004 (4)		10.00		—	(6)		0.08		0.08			—			—			—			10.08			0.80	%		8,187		0.00	%		2.52	%		0.09	%		0.00	%
Class B:	4/1/2007 - 9/30/2007 (4),(5)	$	13.41	($	0.04	)	$	1.09	$	1.05		$	—		($	0.26	)	($	0.26	)	$	14.20			7.90	%	$	31,030		0.75	%		1.54	%		(0.55	%)		1.55	%
	4/1/2006 - 3/31/2007 (4)		12.52		(—	)(6)		1.46		1.46			(0.15	)		(0.42	)		(0.57	)		13.41			12.00	%		23,716		0.58	%		1.67	%		(0.04	%)		10.14	%
	4/1/2005 - 3/31/2006 (4)		10.72		(0.01	)		1.94		1.93			(0.07	)		(0.06	)		(0.13	)		12.52			18.11	%		12,889		0.50	%		1.79	%		(0.08	%)		42.51	%
	4/1/2004 - 3/31/2005 (4)		10.07		(0.03	)		0.71		0.68			—			(0.03	)		(0.03	)		10.72			6.75	%		6,110		0.50	%		2.25	%		(0.27	%)		22.37	%
	12/31/2003 - 3/31/2004 (4)		10.00		(0.01	)		0.08		0.07			—			—			—			10.07			0.70	%		2,409		0.50	%		3.02	%		(0.41	%)		0.00	%
Class C:	4/1/2007 - 9/30/2007 (4),(5)	$	13.40	($	0.04	)	$	1.09	$	1.05		$	—		($	0.26	)	($	0.26	)	$	14.19			7.90	%	$	78,320		0.75	%		1.54	%		(0.55	%)		1.55	%
	4/1/2006 - 3/31/2007 (4)		12.51		(—	)(6)		1.46		1.46			(0.15	)		(0.42	)		(0.57	)		13.40			12.01	%		55,389		0.58	%		1.67	%		(0.04	%)		10.14	%
	4/1/2005 - 3/31/2006 (4)		10.72		(0.01	)		1.93		1.92			(0.07	)		(0.06	)		(0.13	)		12.51			18.00	%		30,782		0.50	%		1.79	%		(0.08	%)		42.51	%
	4/1/2004 - 3/31/2005 (4)		10.07		(0.03	)		0.71		0.68			—			(0.03	)		(0.03	)		10.72			6.75	%		17,510		0.50	%		2.25	%		(0.27	%)		22.37	%
	12/31/2003 - 3/31/2004 (4)		10.00		(0.01	)		0.08		0.07			—			—			—			10.07			0.70	%		7,868		0.50	%		3.02	%		(0.41	%)		0.00	%
Class R:	4/1/2007 - 9/30/2007 (4),(5)	$	13.49	($	—	)(6)	$	1.09	$	1.09		$	—		($	0.26	)	($	0.26	)	$	14.32			8.15	%	$	965		0.25	%		1.04	%		(0.05	%)		1.55	%
	4/1/2006 - 3/31/2007 (4)		12.57		0.05			1.48		1.53			(0.19	)		(0.42	)		(0.61	)		13.49	��		12.53	%		382		0.14	%		1.17	%		0.40	%		10.14	%
	9/30/2005 - 3/31/2006 (4)		11.50		0.02			1.17		1.19			(0.11	)		(0.01	)		(0.12	)		12.57			10.44	%		11		0.00	%		1.29	%		0.42	%		42.51	%
PL Money Market Fund (7)
Class A:	4/1/2007 - 9/30/2007 (5)	$	1.00	$	0.02		$	—	$	0.02		($	0.02	)	$	—		($	0.02	)	$	1.00			2.21	%	$	26,845		0.95	%(8)		1.31	%		4.37	%		N/A
	4/1/2006 - 3/31/2007		1.00		0.04			—		0.04			(0.04	)		—			(0.04	)		1.00			4.31	%		21,098		1.02	%(8)		1.58	%		4.20	%		N/A
	4/1/2005 - 3/31/2006		1.00		0.03			—		0.03			(0.03	)		—			(0.03	)		1.00			2.76	%		19,293		0.94	%(8)		1.79	%		2.67	%		N/A
	4/1/2004 - 3/31/2005		1.00		0.01			—		0.01			(0.01	)		—			(0.01	)		1.00			0.77	%		22,341		0.95	%(8)		2.05	%		0.83	%		N/A
	4/1/2003 - 3/31/2004		1.00		—	(6)		—		—	(6)		(—	)(6)		—			(—	)(6)		1.00			0.18	%		14,627		0.95	%(8)		2.53	%		0.14	%		N/A
	4/1/2002 - 3/31/2003		1.00		0.01			—		0.01			(0.01	)		—			(0.01	)		1.00			0.58	%		13,092		1.08	%(8)		2.50	%		0.59	%		N/A

See Notes to Financial Statements C-3 See explanation of references and symbols on C-11

PACIFIC LIFE FUNDS**
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period ended were as follows:

				Investment Activities									Distributions											Ratios/Supplemental Data
For the Year or Period Ended		Net Asset Value, Beginning of Year or Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss)			Total from Investment Operations			Distributions from Net Investment Income			Distributions from Capital Gains			Total Distributions			Net Asset Value, End of Year or Period		Total Returns (1)			Net Assets, End of Year or Period (in thousands)		Ratios of Expense After Expense Reductions to Average Net Assets (2), (3)			Ratios of Expense Before Expense Reductions to Average Net Assets (3)			Ratios of Net Investment Income (Loss) to Average Net Assets (3)			Portfolio Turnover Rates
PL Small-Cap Growth Fund (9)
Class A:	4/1/2007 - - 9/30/2007 (4),(5)	$	11.24	($	0.05	)	$	1.26		$	1.21		$	—		($	0.07	)	($	0.07	)	$	12.38		10.76	%	$	50,673		1.55	%		1.88	%		(0.87	%)		115.39	%
	4/1/2006 - - 3/31/2007 (4)		11.22		(0.08	)		0.11			0.03			—			(0.01	)		(0.01	)		11.24		0.28	%		41,378		1.78	%		2.24	%		(0.74	%)		52.87	%
	4/1/2005 - - 3/31/2006 (4)		11.78		(0.10	)		1.62			1.52			—			(2.08	)		(2.08	)		11.22		15.01	%		24,218		1.95	%		2.95	%		(0.99	%)		132.27	%
	4/1/2004 - - 3/31/2005 (4)		11.53		(0.16	)		0.69			0.53			—			(0.28	)		(0.28	)		11.78		4.54	%		7,116		1.95	%		3.38	%		(1.36	%)		201.57	%
	4/1/2003 - - 3/31/2004 (4)		8.59		(0.15	)		3.09			2.94			—			—			—			11.53		34.23	%		8,469		1.95	%		3.55	%		(1.61	%)		110.77	%
	4/1/2002 - - 3/31/2003 (4)		11.63		(0.16	)		(2.88	)		(3.04	)		—			—			—			8.59		(26.14	%)		5,031		1.95	%		4.27	%		(1.66	%)		71.87	%
Class B:	4/1/2007 - - 9/30/2007 (4),(5)	$	10.91	($	0.09	)	$	1.22		$	1.13		$	—		($	0.07	)	($	0.07	)	$	11.97		10.35	%	$	445		2.30	%		2.63	%		(1.62	%)		115.39	%
	4/1/2006 - - 3/31/2007 (4)		10.95		(0.14	)		0.11			(0.03	)		—			(0.01	)		(0.01	)		10.91		(0.26	%)		442		2.35	%		2.81	%		(1.31	%)		52.87	%
	4/1/2005 - - 3/31/2006 (4)		11.59		(0.16	)		1.60			1.44			—			(2.08	)		(2.08	)		10.95		14.49	%		425		2.45	%		3.45	%		(1.49	%)		132.27	%
	4/1/2004 - - 3/31/2005 (4)		11.41		(0.21	)		0.67			0.46			—			(0.28	)		(0.28	)		11.59		3.97	%		283		2.45	%		3.88	%		(1.86	%)		201.57	%
	4/1/2003 - - 3/31/2004 (4)		8.53		(0.22	)		3.10			2.88			—			—			—			11.41		33.61	%		267		2.45	%		4.05	%		(2.11	%)		110.77	%
	4/1/2002 - - 3/31/2003 (4)		11.61		(0.19	)		(2.89	)		(3.08	)		—			—			—			8.53		(26.44	%)		63		2.45	%		4.77	%		(2.16	%)		71.87	%
Class C:	4/1/2007 - - 9/30/2007 (4),(5)	$	10.93	($	0.09	)	$	1.22		$	1.13		$	—		($	0.07	)	($	0.07	)	$	11.99		10.33	%	$	389		2.30	%		2.63	%		(1.62	%)		115.39	%
	4/1/2006 - - 3/31/2007 (4)		10.96		(0.14	)		0.12			(0.02	)		—			(0.01	)		(0.01	)		10.93		(0.17	%)		432		2.35	%		2.81	%		(1.31	%)		52.87	%
	4/1/2005 - - 3/31/2006 (4)		11.61		(0.16	)		1.59			1.43			—			(2.08	)		(2.08	)		10.96		14.38	%		539		2.45	%		3.45	%		(1.49	%)		132.27	%
	4/1/2004 - - 3/31/2005 (4)		11.42		(0.21	)		0.68			0.47			—			(0.28	)		(0.28	)		11.61		4.06	%		585		2.45	%		3.88	%		(1.86	%)		201.57	%
	4/1/2003 - - 3/31/2004 (4)		8.55		(0.23	)		3.10			2.87			—			—			—			11.42		33.57	%		360		2.45	%		4.05	%		(2.11	%)		110.77	%
	4/1/2002 - - 3/31/2003 (4)		11.61		(0.19	)		(2.87	)		(3.06	)		—			—			—			8.55		(26.36	%)		115		2.45	%		4.77	%		(2.16	%)		71.87	%
PL International Value Fund (10)
Class A:	4/1/2007 - - 9/30/2007 (4),(5)	$	14.39	$	0.16		$	1.06		$	1.22		($	0.02	)	$	—		($	0.02	)	$	15.59		8.58	%	$	112,461		1.40	%		1.73	%		2.13	%		10.23	%
	4/1/2006 - - 3/31/2007 (4)		15.30		0.16			2.48			2.64			(0.14	)		(3.41	)		(3.55	)		14.39		18.40	%		77,127		1.64	%		2.08	%		1.04	%		108.86	%
	4/1/2005 - - 3/31/2006 (4)		13.22		0.14			2.19			2.33			(0.08	)		(0.17	)		(0.25	)		15.30		17.85	%		57,657		1.80	%		2.28	%		0.99	%		55.25	%
	4/1/2004 - - 3/31/2005 (4)		11.89		0.08			1.46			1.54			(0.02	)		(0.19	)		(0.21	)		13.22		13.13	%		50,801		1.80	%		2.45	%		0.62	%		20.92	%
	4/1/2003 - - 3/31/2004 (4)		8.73		0.06			3.13			3.19			(0.03	)		—			(0.03	)		11.89		36.57	%		20,007		1.80	%		2.86	%		0.73	%		58.63	%
	4/1/2002 - - 3/31/2003 (4)		11.09		0.07			(2.33	)		(2.26	)		(0.04	)		(0.06	)		(0.10	)		8.73		(20.50	%)		7,218		1.80	%		3.89	%		0.76	%		19.60	%
Class B:	4/1/2007 - - 9/30/2007 (4),(5)	$	14.07	$	0.10		$	1.04		$	1.14		$	—		$	—		$	—		$	15.21		8.18	%	$	667		2.15	%		2.48	%		1.38	%		10.23	%
	4/1/2006 - - 3/31/2007 (4)		15.05		0.07			2.44			2.51			(0.08	)		(3.41	)		(3.49	)		14.07		17.74	%		662		2.21	%		2.65	%		0.47	%		108.86	%
	4/1/2005 - - 3/31/2006 (4)		13.00		0.07			2.16			2.23			(0.01	)		(0.17	)		(0.18	)		15.05		17.36	%		427		2.30	%		2.78	%		0.49	%		55.25	%
	4/1/2004 - - 3/31/2005 (4)		11.73		0.01			1.45			1.46			—			(0.19	)		(0.19	)		13.00		12.59	%		449		2.30	%		2.95	%		0.12	%		20.92	%
	4/1/2003 - - 3/31/2004 (4)		8.66		0.02			3.07			3.09			(0.02	)		—			(0.02	)		11.73		35.79	%		324		2.30	%		3.36	%		0.23	%		58.63	%
	4/1/2002 - - 3/31/2003 (4)		11.08		0.02			(2.33	)		(2.31	)		(0.05	)		(0.06	)		(0.11	)		8.66		(20.93	%)		771		2.30	%		4.39	%		0.26	%		19.60	%
Class C:	4/1/2007 - - 9/30/2007 (4),(5)	$	14.06	$	0.10		$	1.05		$	1.15		$	—		$	—		$	—		$	15.21		8.18	%	$	1,380		2.15	%		2.48	%		1.38	%		10.23	%
	4/1/2006 - - 3/31/2007 (4)		15.02		0.07			2.43			2.50			(0.05	)		(3.41	)		(3.46	)		14.06		17.82	%		1,435		2.21	%		2.65	%		0.47	%		108.86	%
	4/1/2005 - - 3/31/2006 (4)		13.00		0.07			2.14			2.21			(0.02	)		(0.17	)		(0.19	)		15.02		17.19	%		1,548		2.30	%		2.78	%		0.49	%		55.25	%
	4/1/2004 - - 3/31/2005 (4)		11.73		0.01			1.45			1.46			—			(0.19	)		(0.19	)		13.00		12.59	%		1,212		2.30	%		2.95	%		0.12	%		20.92	%
	4/1/2003 - - 3/31/2004 (4)		8.66		0.02			3.07			3.09			(0.02	)		—			(0.02	)		11.73		35.79	%		781		2.30	%		3.36	%		0.23	%		58.63	%
	4/1/2002 - - 3/31/2003 (4)		11.07		0.02			(2.32	)		(2.30	)		(0.05	)		(0.06	)		(0.11	)		8.66		(20.93	%)		1,656		2.30	%		4.39	%		0.26	%		19.60	%

See Notes to Financial Statements C-4 See explanation of references and symbols on C-11

PACIFIC LIFE FUNDS**
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period ended were as follows:

				Investment Activities									Distributions											Ratios/Supplemental Data
For the Year or Period Ended		Net Asset Value, Beginning of Year or Period		Net Investment Income(Loss)			Net Realized and Unrealized Gain (Loss)			Total from Investment Operations			Distributions from Net Investment Income			Distributions from Capital Gains			Total Distributions			Net Asset Value, End of Year or Period		Total Returns (1)			Net Assets, End of Year or Period (in thousands)		Ratios of Expenses After Expense Reductions to net Average Net Assets (2), (3)			Ratios of Expenses Before Expense Reductions to gross Average Net Assets (3)			Ratios of Net Investment Income (Loss) to Average Net Assets (3)			Portfolio Turnover Rates
PL Large-Cap Value Fund
Class A:	4/1/2007 - 9/30/2007 (4),(5)	$	13.03	$	0.04		$	0.68		$	0.72		($	0.01	)	($	0.09	)	($	0.10	)	$	13.65		5.52	%	$	67,638		1.40	%		1.70	%		0.60	%		11.42	%
	4/1/2006 - 3/31/2007 (4)		12.67		0.06			1.37			1.43			(0.04	)		(1.03	)		(1.07	)		13.03		12.09	%		56,601		1.63	%		2.05	%		0.50	%		19.58	%
	4/1/2005 - 3/31/2006 (4)		11.30		0.02			1.38			1.40			(0.03	)		(—	)(6)		(0.03	)		12.67		12.47	%		34,459		1.80	%		2.25	%		0.20	%		77.07	%
	4/1/2004 - 3/31/2005 (4)		10.94		0.06			0.35			0.41			(0.05	)		—			(0.05	)		11.30		3.78	%		50,430		1.80	%		2.28	%		0.54	%		43.72	%
	4/1/2003 - 3/31/2004 (4)		7.83		0.03			3.09			3.12			(0.01	)		—			(0.01	)		10.94		39.91	%		25,315		1.80	%		2.73	%		0.29	%		38.10	%
	4/1/2002 - 3/31/2003 (4)		10.92		0.04			(3.05	)		(3.01	)		(0.02	)		(0.06	)		(0.08	)		7.83		(27.69	%)		11,736		1.80	%		2.94	%		0.41	%		49.00	%
Class B:	4/1/2007 - 9/30/2007 (4),(5)	$	12.81	($	0.01	)	$	0.67		$	0.66		$	—		($	0.09	)	($	0.09	)	$	13.38		5.13	%	$	677		2.15	%		2.45	%		(0.15	%)		11.42	%
	4/1/2006 - 3/31/2007 (4)		12.51		(0.01	)		1.34			1.33			—			(1.03	)		(1.03	)		12.81		11.43	%		687		2.20	%		2.62	%		(0.07	%)		19.58	%
	4/1/2005 - 3/31/2006 (4)		11.19		(0.03	)		1.37			1.34			(0.02	)		(—	)(6)		(0.02	)		12.51		11.99	%		573		2.30	%		2.75	%		(0.30	%)		77.07	%
	4/1/2004 - 3/31/2005 (4)		10.83		—	(6)		0.36			0.36			—			—			—			11.19		3.32	%		504		2.30	%		2.78	%		0.04	%		43.72	%
	4/1/2003 - 3/31/2004 (4)		7.78		(0.02	)		3.08			3.06			(0.01	)		—			(0.01	)		10.83		39.36	%		556		2.30	%		3.23	%		(0.21	%)		38.10	%
	4/1/2002 - 3/31/2003 (4)		10.91		(0.01	)		(3.03	)		(3.04	)		(0.03	)		(0.06	)		(0.09	)		7.78		(28.02	%)		955		2.30	%		3.44	%		(0.09	%)		49.00	%
Class C:	4/1/2007 - 9/30/2007 (4),(5)	$	12.78	($	0.01	)	$	0.66		$	0.65		$	—		($	0.09	)	($	0.09	)	$	13.34		5.06	%	$	1,436		2.15	%		2.45	%		(0.15	%)		11.42	%
	4/1/2006 - 3/31/2007 (4)		12.48		(0.01	)		1.34			1.33			—			(1.03	)		(1.03	)		12.78		11.46	%		1,551		2.20	%		2.62	%		(0.07	%)		19.58	%
	4/1/2005 - 3/31/2006 (4)		11.16		(0.03	)		1.36			1.33			(0.01	)		(—	)(6)		(0.01	)		12.48		11.88	%		1,599		2.30	%		2.75	%		(0.30	%)		77.07	%
	4/1/2004 - 3/31/2005 (4)		10.81		—	(6)		0.35			0.35			—			—			—			11.16		3.33	%		1,538		2.30	%		2.78	%		0.04	%		43.72	%
	4/1/2003 - 3/31/2004 (4)		7.77		(0.02	)		3.07			3.05			(0.01	)		—			(0.01	)		10.81		39.27	%		1,277		2.30	%		3.23	%		(0.21	%)		38.10	%
	4/1/2002 - 3/31/2003 (4)		10.90		(0.01	)		(3.04	)		(3.05	)		(0.02	)		(0.06	)		(0.08	)		7.77		(28.08	%)		2,015		2.30	%		3.44	%		(0.09	%)		49.00	%
PL Short Duration Bond Fund
Class A:	4/1/2007 - 9/30/2007 (4),(5)	$	9.81	$	0.18		$	0.11		$	0.29		($	0.18	)	$	—		($	0.18	)	$	9.92		2.94	%	$	78,578		1.15	%		1.44	%		3.64	%		22.58	%
	4/1/2006 - 3/31/2007 (4)		9.76		0.32			0.04			0.36			(0.31	)		—			(0.31	)		9.81		3.76	%		66,823		1.39	%		1.75	%		3.28	%		77.84	%
	4/1/2005 - 3/31/2006 (4)		9.85		0.19			(0.09	)		0.10			(0.19	)		—			(0.19	)		9.76		1.03	%		44,945		1.55	%		1.93	%		1.97	%		91.81	%
	4/1/2004 - 3/31/2005 (4)		10.09		0.09			(0.22	)		(0.13	)		(0.09	)		(0.02	)		(0.11	)		9.85		(1.34	%)		35,333		1.55	%		2.34	%		0.93	%		203.81	%
	12/31/2003 - 3/31/2004 (4)		10.00		0.01			0.08			0.09			—			—			—			10.09		0.90	%		13,617		1.55	%		2.72	%		0.23	%		144.88	%
Class B:	4/1/2007 - 9/30/2007 (4),(5)	$	9.80	$	0.14		$	0.11		$	0.25		$	(0.14	)	$	—		($	0.14	)	$	9.91		2.56	%	$	46		1.90	%		2.19	%		2.89	%		22.58	%
	4/1/2006 - 3/31/2007 (4)		9.74		0.26			0.06			0.32			(0.26	)		—			(0.26	)		9.80		3.31	%		45		1.96	%		2.32	%		2.71	%		77.84	%
	4/1/2005 - 3/31/2006 (4)		9.85		0.14			(0.11	)		0.03			(0.14	)		—			(0.14	)		9.74		0.35	%		20		2.05	%		2.43	%		1.47	%		91.81	%
	4/1/2004 - 3/31/2005 (4)		10.08		0.04			(0.21	)		(0.17	)		(0.04	)		(0.02	)		(0.06	)		9.85		(1.77	%)		13		2.05	%		2.84	%		0.43	%		203.81	%
	12/31/2003 - 3/31/2004 (4)		10.00		(0.01	)		0.09			0.08			—			—			—			10.08		0.80	%		10		2.05	%		3.22	%		(0.27	%)		144.88	%
Class C:	4/1/2007 - 9/30/2007 (4),(5)	$	9.79	$	0.14		$	0.11		$	0.25		($	0.13	)	$	—		($	0.13	)	$	9.91		2.60	%	$	188		1.90	%		2.19	%		2.89	%		22.58	%
	4/1/2006 - 3/31/2007 (4)		9.74		0.27			0.03			0.30			(0.25	)		—			(0.25	)		9.79		3.17	%		434		1.96	%		2.32	%		2.71	%		77.84	%
	4/1/2005 - 3/31/2006 (4)		9.83		0.14			(0.09	)		0.05			(0.14	)		—			(0.14	)		9.74		0.52	%		588		2.05	%		2.43	%		1.47	%		91.81	%
	4/1/2004 - 3/31/2005 (4)		10.08		0.04			(0.22	)		(0.18	)		(0.05	)		(0.02	)		(0.07	)		9.83		(1.81	%)		579		2.05	%		2.84	%		0.43	%		203.81	%
	12/31/2003 - 3/31/2004 (4)		10.00		(0.01	)		0.09			0.08			—			—			—			10.08		0.80	%		62		2.05	%		3.22	%		(0.27	%)		144.88	%

See Notes to Financial Statements C-5 See explanation of references and symbols on C-11

PACIFIC LIFE FUNDS**
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period ended were as follows:

				Investment Activities									Distributions											Ratios/Supplemental Data
For the Year or Period Ended		Net Asset Value, Beginning of Year or Period		Net Investment Income(Loss)			Net Realized and Unrealized Gain (Loss)			Total from Investment Operations			Distributions from Net Investment Income			Distributions from Capital Gains			Total Distributions			Net Asset Value, End of Year or Period		Total Returns(1)			Net Assets, End of Year or Period (in thousands)		Ratios of Expenses After Expense Reductions to Average Net Assets (2), (3)			Ratios of Expenses Before Expense Reductions to Average Net Assets(3)			Ratios of Net Investment Income (Loss) to Average Net Assets(3)			Portfolio Turnover Rates
PL Growth LT Fund
Class A:	4/1/2007 - 9/30/2007 (4),(5)	$	13.10	$	0.01		$	1.39		$	1.40		$	—		($	0.05	)	($	0.05	)	$	14.45		10.72	%	$	77,879		1.30	%		1.62	%		0.10	%		16.40	%
	4/1/2006 - 3/31/2007 (4)		12.23		(0.01	)		0.98			0.97			—			(0.10	)		(0.10	)		13.10		7.95	%		61,954		1.54	%		1.95	%		(0.08	%)		37.99	%
	4/1/2005 - 3/31/2006 (4)		10.64		(0.05	)		1.64			1.59			—			—			—			12.23		14.94	%		43,733		1.70	%		2.15	%		(0.44	%)		69.48	%
	4/1/2004 - 3/31/2005 (4)		10.34		(0.05	)		0.35			0.30			—			—			—			10.64		2.90	%		19,585		1.70	%		2.54	%		(0.44	%)		42.84	%
	4/1/2003 - 3/31/2004 (4)		7.62		(0.10	)		2.82			2.72			—			—			—			10.34		35.70	%		11,994		1.70	%		3.21	%		(1.08	%)		42.65	%
	4/1/2002 - 3/31/2003		10.32		(0.08	)		(2.62	)		(2.70	)		—			—			—			7.62		(26.16	%)		6,832		1.70	%		4.01	%		(0.95	%)		124.73	%
Class B:	4/1/2007 - 9/30/2007 (4),(5)	$	12.78	($	0.04	)	$	1.35		$	1.31		$	—		($	0.05	)	($	0.05	)	$	14.04		10.28	%	$	466		2.05	%		2.37	%		(0.65	%)		16.40	%
	4/1/2006 - 3/31/2007 (4)		12.00		(0.08	)		0.96			0.88			—			(0.10	)		(0.10	)		12.78		7.44	%		445		2.11	%		2.52	%		(0.65	%)		37.99	%
	4/1/2005 - 3/31/2006 (4)		10.49		(0.11	)		1.62			1.51			—			—			—			12.00		14.30	%		412		2.20	%		2.65	%		(0.94	%)		69.48	%
	4/1/2004 - 3/31/2005 (4)		10.24		(0.10	)		0.35			0.25			—			—			—			10.49		2.44	%		373		2.20	%		3.04	%		(0.94	%)		42.84	%
	4/1/2003 - 3/31/2004 (4)		7.58		(0.15	)		2.81			2.66			—			—			—			10.24		34.91	%		293		2.20	%		3.71	%		(1.58	%)		42.65	%
	4/1/2002 - 3/31/2003		10.30		(0.06	)		(2.66	)		(2.72	)		—			—			—			7.58		(26.31	%)		301		2.20	%		4.51	%		(1.45	%)		124.73	%
Class C:	4/1/2007 - 9/30/2007 (4),(5)	$	12.74	($	0.04	)	$	1.34		$	1.30		$	—		($	0.05	)	($	0.05	)	$	13.99		10.24	%	$	719		2.05	%		2.37	%		(0.65	%)		16.40	%
	4/1/2006 - 3/31/2007 (4)		11.95		(0.08	)		0.97			0.89			—			(0.10	)		(0.10	)		12.74		7.46	%		775		2.11	%		2.52	%		(0.65	%)		37.99	%
	4/1/2005 - 3/31/2006 (4)		10.46		(0.11	)		1.60			1.49			—			—			—			11.95		14.24	%		893		2.20	%		2.65	%		(0.94	%)		69.48	%
	4/1/2004 - 3/31/2005 (4)		10.21		(0.10	)		0.35			0.25			—			—			—			10.46		2.45	%		472		2.20	%		3.04	%		(0.94	%)		42.84	%
	4/1/2003 - 3/31/2004 (4)		7.57		(0.15	)		2.79			2.64			—			—			—			10.21		34.87	%		400		2.20	%		3.71	%		(1.58	%)		42.65	%
	4/1/2002 - 3/31/2003		10.31		(0.08	)		(2.66	)		(2.74	)		—			—			—			7.57		(26.58	%)		624		2.20	%		4.51	%		(1.45	%)		124.73	%
PL Mid-Cap Value Fund
Class A:	4/1/2007 - 9/30/2007 (4),(5)	$	11.62	$	0.02		$	0.21		$	0.23		$	—		($	0.56	)	($	0.56	)	$	11.29		1.71	%	$	82,439		1.40	%		1.70	%		0.28	%		38.12	%
	4/1/2006 - 3/31/2007 (4)		10.54		(—	)(6)		1.51			1.51			—			(0.43	)		(0.43	)		11.62		14.80	%		71,181		1.60	%		2.01	%		(—	%)(6)		74.07	%
	4/1/2005 - 3/31/2006 (4)		9.90		(0.02	)		1.30			1.28			(0.01	)		(0.63	)		(0.64	)		10.54		13.11	%		23,992		1.80	%		2.44	%		(0.16	%)		112.93	%
	12/31/2004 - 3/31/2005 (4)		10.00		(0.01	)		(0.09	)		(0.10	)		—			—			—			9.90		(1.00	%)		25,454		1.80	%		3.20	%		(0.42	%)		16.26	%
Class B:	4/1/2007 - 9/30/2007 (4),(5)	$	11.48	($	0.03	)	$	0.22		$	0.19		$	—		($	0.56	)	($	0.56	)	$	11.11		1.38	%	$	65		2.15	%		2.45	%		(0.47	%)		38.12	%
	4/1/2006 - 3/31/2007 (4)		10.48		(0.06	)		1.49			1.43			—			(0.43	)		(0.43	)		11.48		14.10	%		94		2.19	%		2.60	%		(0.59	%)		74.07	%
	4/1/2005 - 3/31/2006 (4)		9.89		(0.07	)		1.29			1.22			—			(0.63	)		(0.63	)		10.48		12.53	%		64		2.30	%		2.94	%		(0.66	%)		112.93	%
	12/31/2004 - 3/31/2005 (4)		10.00		(0.02	)		(0.09	)		(0.11	)		—			—			—			9.89		(1.10	%)		33		2.30	%		3.70	%		(0.92	%)		16.26	%
Class C:	4/1/2007 - 9/30/2007 (4),(5)	$	11.47	($	0.03	)	$	0.22		$	0.19		$	—		($	0.56	)	($	0.56	)	$	11.10		1.38	%	$	244		2.15	%		2.45	%		(0.47	%)		38.12	%
	4/1/2006 - 3/31/2007 (4)		10.47		(0.06	)		1.49			1.43			—			(0.43	)		(0.43	)		11.47		14.11	%		253		2.19	%		2.60	%		(0.59	%)		74.07	%
	4/1/2005 - 3/31/2006 (4)		9.89		(0.07	)		1.29			1.22			(0.01	)		(0.63	)		(0.64	)		10.47		12.50	%		128		2.30	%		2.94	%		(0.66	%)		112.93	%
	12/31/2004 - 3/31/2005 (4)		10.00		(0.02	)		(0.09	)		(0.11	)		—			—			—			9.89		(1.10	%)		73		2.30	%		3.70	%		(0.92	%)		16.26	%

See Notes to Financial Statements C-6 See explanation of references and symbols on C-11

PACIFIC LIFE FUNDS**

FINANCIAL HIGHLIGHTS (Continued)

Selected per share, ratios and supplemental data for each year or period ended were as follows:

				Investment Activities									Distributions											Ratios/Supplemental Data
For the Year or Period Ended		Net Asset Value, Beginning of Year or Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss)			Total from Investment Operations			Distributions from Net Investment Income			Distributions from Capital Gains			Total Distributions			Net Asset Value, End of Year or Period		Total Returns (1)			Net Assets, End of Year or Period (in thousands)		Ratios of Expenses After Expense Reductions to Average Net Assets (2), (3)			Ratios of Expenses Before Expense Reductions to Average Net Assets (3)			Ratios of Net Investment Income (Loss) to Average Net Assets (3)			Portfolio Turnover Rates
PL Large-Cap Growth Fund (11)
Class A:	4/1/2007 - 9/30/2007 (4),(5)	$	9.43	($	0.04	)	$	1.21		$	1.17		$	—		$	—		$	—		$	10.60		12.41	%	$	35,219		1.50	%		1.97	%		(0.90	%)		73.60	%
	4/1/2006 - 3/31/2007 (4)		10.85		(0.09	)		(0.40	)		(0.49	)		—			(0.93	)		(0.93	)		9.43		(3.80	%)		29,713		1.73	%		2.43	%		(0.93	%)		147.66	%
	4/1/2005 - 3/31/2006 (4)		10.14		(0.07	)		0.78			0.71			—			—			—			10.85		7.00	%		19,366		1.90	%		2.58	%		(0.62	%)		160.96	%
	4/1/2004 - 3/31/2005 (4)		10.19		(0.01	)		(0.04	)		(0.05	)		—			—			—			10.14		(0.49	%)		45,147		1.90	%		2.37	%		(0.08	%)		38.40	%
	4/1/2003 - 3/31/2004 (4)		8.05		(0.07	)		2.21			2.14			—			—			—			10.19		26.58	%		23,408		1.90	%		3.12	%		(0.69	%)		78.30	%
	4/1/2002 - 3/31/2003 (4)		10.96		(0.06	)		(2.85	)		(2.91	)		—			—			—			8.05		(26.55	%)		7,922		1.90	%		3.94	%		(0.67	%)		35.58	%
Class B:	4/1/2007 - 9/30/2007 (4),(5)	$	9.15	($	0.08	)	$	1.18		$	1.10		$	—		$	—		$	—		$	10.25		12.02	%	$	462		2.25	%		2.72	%		(1.65	%)		73.60	%
	4/1/2006 - 3/31/2007 (4)		10.62		(0.14	)		(0.40	)		(0.54	)		—			(0.93	)		(0.93	)		9.15		(4.40	%)		428		2.31	%		3.01	%		(1.50	%)		147.66	%
	4/1/2005 - 3/31/2006 (4)		9.98		(0.12	)		0.76			0.64			—			—			—			10.62		6.41	%		594		2.40	%		3.08	%		(1.12	%)		160.96	%
	4/1/2004 - 3/31/2005 (4)		10.07		(0.06	)		(0.03	)		(0.09	)		—			—			—			9.98		(0.89	%)		526		2.40	%		2.87	%		(0.58	%)		38.40	%
	4/1/2003 - 3/31/2004 (4)		7.98		(0.11	)		2.20			2.09			—			—			—			10.07		26.19	%		497		2.40	%		3.62	%		(1.19	%)		78.30	%
	4/1/2002 - 3/31/2003 (4)		10.94		(0.10	)		(2.86	)		(2.96	)		—			—			—			7.98		(27.06	%)		757		2.40	%		4.44	%		(1.17	%)		35.58	%
Class C:	4/1/2007 - 9/30/2007 (4),(5)	$	9.14	($	0.08	)	$	1.18		$	1.10		$	—		$	—		$	—		$	10.24		12.04	%	$	804		2.25	%		2.72	%		(1.65	%)		73.60	%
	4/1/2006 - 3/31/2007 (4)		10.60		(0.14	)		(0.39	)		(0.53	)		—			(0.93	)		(0.93	)		9.14		(4.31	%)		824		2.31	%		3.01	%		(1.50	%)		147.66	%
	4/1/2005 - 3/31/2006 (4)		9.97		(0.12	)		0.75			0.63			—			—			—			10.60		6.32	%		1,654		2.40	%		3.08	%		(1.12	%)		160.96	%
	4/1/2004 - 3/31/2005 (4)		10.06		(0.06	)		(0.03	)		(0.09	)		—			—			—			9.97		(0.89	%)		1,367		2.40	%		2.87	%		(0.58	%)		38.40	%
	4/1/2003 - 3/31/2004 (4)		7.98		(0.11	)		2.19			2.08			—			—			—			10.06		26.07	%		1,090		2.40	%		3.62	%		(1.19	%)		78.30	%
	4/1/2002 - 3/31/2003 (4)		10.93		(0.10	)		(2.85	)		(2.95	)		—			—			—			7.98		(26.99	%)		1,467		2.40	%		4.44	%		(1.17	%)		35.58	%
PL International Large-Cap Fund (12)
Class A:	4/1/2007 - 9/30/2007 (4),(5)	$	16.64	$	0.20		$	0.80		$	1.00		$	—		($	0.44	)	($	0.44	)	$	17.20		6.07	%	$	92,049		1.60	%		2.02	%		2.35	%		13.21	%
	4/1/2006 - 3/31/2007 (4)		15.45		0.28			2.49			2.77			(0.30	)		(1.28	)		(1.58	)		16.64		18.70	%		76,806		1.84	%		2.38	%		1.77	%		47.87	%
	4/1/2005 - 3/31/2006 (4)		12.83		(—	)(6)		2.89			2.89			(0.04	)		(0.23	)		(0.27	)		15.45		22.72	%		52,728		2.00	%		2.79	%		(0.03	%)		63.12	%
	4/1/2004 - 3/31/2005 (4)		11.61		(0.01	)		1.46			1.45			—			(0.23	)		(0.23	)		12.83		12.73	%		38,195		2.00	%		3.35	%		(0.12	%)		55.12	%
	4/1/2003 - 3/31/2004 (4)		8.20		(0.04	)		3.45			3.41			—			—			—			11.61		41.59	%		15,358		2.03	%		5.96	%		(0.38	%)		150.05	%
	4/1/2002 - 3/31/2003 (4)		11.03		(0.04	)		(2.59	)		(2.63	)		—			(0.20	)		(0.20	)		8.20		(24.11	%)		4,505		2.05	%		9.08	%		(0.40	%)		137.37	%
Class B:	4/1/2007 - 9/30/2007 (4),(5)	$	16.24	$	0.13		$	0.77		$	0.90		$	—		($	0.44	)	($	0.44	)	$	16.70		5.60	%	$	692		2.35	%		2.77	%		1.60	%		13.21	%
	4/1/2006 - 3/31/2007 (4)		15.15		0.19			2.43			2.62			(0.25	)		(1.28	)		(1.53	)		16.24		18.12	%		668		2.41	%		2.95	%		1.20	%		47.87	%
	4/1/2005 - 3/31/2006 (4)		12.60		(0.07	)		2.85			2.78			—			(0.23	)		(0.23	)		15.15		22.16	%		436		2.50	%		3.29	%		(0.53	%)		63.12	%
	4/1/2004 - 3/31/2005 (4)		11.46		(0.07	)		1.44			1.37			—			(0.23	)		(0.23	)		12.60		12.18	%		391		2.50	%		3.85	%		(0.62	%)		55.12	%
	4/1/2003 - 3/31/2004 (4)		8.14		(0.09	)		3.41			3.32			—			—			—			11.46		40.79	%		265		2.53	%		6.46	%		(0.88	%)		150.05	%
	4/1/2002 - 3/31/2003 (4)		11.01		(0.08	)		(2.59	)		(2.67	)		—			(0.20	)		(0.20	)		8.14		(24.52	%)		58		2.55	%		9.58	%		(0.90	%)		137.37	%
Class C:	4/1/2007 - 9/30/2007 (4),(5)	$	16.29	$	0.13		$	0.77		$	0.90		$	—		($	0.44	)	($	0.44	)	$	16.75		5.58	%	$	829		2.35	%		2.77	%		1.60	%		13.21	%
	4/1/2006 - 3/31/2007 (4)		15.16		0.19			2.44			2.63			(0.22	)		(1.28	)		(1.50	)		16.29		18.11	%		898		2.41	%		2.95	%		1.20	%		47.87	%
	4/1/2005 - 3/31/2006 (4)		12.62		(0.07	)		2.84			2.77			—			(0.23	)		(0.23	)		15.16		22.12	%		897		2.50	%		3.29	%		(0.53	%)		63.12	%
	4/1/2004 - 3/31/2005 (4)		11.48		(0.07	)		1.44			1.37			—			(0.23	)		(0.23	)		12.62		12.16	%		593		2.50	%		3.85	%		(0.62	%)		55.12	%
	4/1/2003 - 3/31/2004 (4)		8.14		(0.09	)		3.43			3.34			—			—			—			11.48		40.86	%		222		2.53	%		6.46	%		(0.88	%)		150.05	%
	4/1/2002 - 3/31/2003 (4)		11.01		(0.08	)		(2.59	)		(2.67	)		—			(0.20	)		(0.20	)		8.14		(24.43	%)		79		2.55	%		9.58	%		(0.90	%)		137.37	%

See Notes to Financial Statements C-7 See explanation of references and symbols on C-11

PACIFIC LIFE FUNDS**
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period ended were as follows:

				Investment Activities								Distributions											Ratios/Supplemental Data
For the Year or Period Ended		Net Asset Value, Beginning of Year or Period		Net Investment Income		Net Realized andUnrealized Gain(Loss)			Total from Investment Operations			Distributions from Net Investment Income			Distributions from Capital Gains			Total Distributions			Net Asset Value, End of Year or Period		Total Returns (1)			Net Assets, End of Year or Period (in thousands)		Ratios of Expenses After Expense Reductions to Average Net Assets (2), (3)			Ratios of Expenses Before Expense Reductions to Average Net Assets (3)			Ratios of Net Investment Income to Average Net Assets(3)			Portfolio Turnover Rates
PL Small-Cap Value Fund (13)
Class A:	6/29/2007 - 9/30/2007 (5)	$	10.00	$	0.03	($	0.44	)	($	0.41	)	$	—		$	—		$	—		$	9.59		(4.00	%)	$	15,293		1.50	%		2.34	%		1.72	%		2.50	%
PL Main Street Core Fund
Class A:	4/1/2007 - 9/30/2007 (5)	$	11.46	$	0.03	$	1.03		$	1.06		($	0.02	)	($	0.22	)	($	0.24	)	$	12.28		9.34	%	$	108,580		1.20	%		1.55	%		0.63	%		50.57	%
	4/1/2006 - 3/31/2007		10.67		0.05		0.92			0.97			(0.03	)		(0.15	)		(0.18	)		11.46		9.23	%		87,136		1.43	%		1.88	%		0.54	%		107.36	%
	9/30/2005 - 3/31/2006		10.00		0.01		0.67			0.68			(0.01	)		—			(0.01	)		10.67		6.85	%		53,930		1.60	%		2.00	%		0.29	%		42.30	%
PL Emerging Markets Fund
Class A:	4/1/2007 - 9/30/2007 (5)	$	13.01	$	0.08	$	3.26		$	3.34		$	—		($	0.24	)	($	0.24	)	$	16.11		25.82	%	$	53,955		1.55	%		2.27	%		0.96	%		32.91	%
	4/1/2006 - 3/31/2007		12.00		0.06		1.56			1.62			(0.05	)		(0.56	)		(0.61	)		13.01		14.49	%		51,376		1.78	%		2.81	%		0.49	%		58.31	%
	9/30/2005 - 3/31/2006		10.00		0.08		2.00			2.08			(0.08	)		(—	)	(6)	(0.08	)		12.00		20.94	%		33,476		1.95	%		5.53	%		1.88	%		41.88	%
PL Managed Bond Fund
Class A:	4/1/2007 - 9/30/2007 (4),(5)	$	10.16	$	0.20	$	0.05		$	0.25		($	0.10	)	($	0.01	)	($	0.11	)	$	10.30		2.47	%	$	138,540		1.15	%		1.49	%		4.07	%		277.61	%
	4/1/2006 - 3/31/2007 (4)		9.98		0.35		0.22			0.57			(0.39	)		—			(0.39	)		10.16		5.90	%		101,940		1.39	%		1.82	%		3.49	%		477.64	%
	4/1/2005 - 3/31/2006 (4)		10.03		0.29		(0.07	)		0.22			(0.27	)		—			(0.27	)		9.98		2.19	%		68,825		1.55	%		2.00	%		2.84	%		534.38	%
	4/1/2004 - 3/31/2005 (4)		10.45		0.14		(0.09	)		0.05			(0.25	)		(0.22	)		(0.47	)		10.03		0.56	%		42,546		1.55	%		2.22	%		1.37	%		323.24	%
	4/1/2003 - 3/31/2004 (4)		10.16		0.17		0.46			0.63			(0.34	)		—			(0.34	)		10.45		6.28	%		19,802		1.55	%		2.86	%		1.65	%		459.70	%
	4/1/2002 - 3/31/2003 (4)		9.85		0.21		1.02			1.23			(0.36	)		(0.56	)		(0.92	)		10.16		12.80	%		18,236		1.55	%		2.82	%		2.02	%		445.26	%
Class B:	4/1/2007 - 9/30/2007 (4),(5)	$	10.14	$	0.17	$	0.05		$	0.22		($	0.07	)	($	0.01	)	($	0.08	)	$	10.28		2.09	%	$	868		1.90	%		2.24	%		3.32	%		277.61	%
	4/1/2006 - 3/31/2007 (4)		9.96		0.29		0.22			0.51			(0.33	)		—			(0.33	)		10.14		5.31	%		915		1.96	%		2.39	%		2.92	%		477.64	%
	4/1/2005 - 3/31/2006 (4)		10.01		0.24		(0.07	)		0.17			(0.22	)		—			(0.22	)		9.96		1.67	%		1,049		2.05	%		2.50	%		2.34	%		534.38	%
	4/1/2004 - 3/31/2005 (4)		10.44		0.09		(0.10	)		(0.01	)		(0.20	)		(0.22	)		(0.42	)		10.01		(0.05	%)		1,135		2.05	%		2.72	%		0.87	%		323.24	%
	4/1/2003 - 3/31/2004 (4)		10.14		0.12		0.46			0.58			(0.28	)		—			(0.28	)		10.44		5.86	%		972		2.05	%		3.36	%		1.15	%		459.70	%
	4/1/2002 - 3/31/2003 (4)		9.84		0.15		1.03			1.18			(0.32	)		(0.56	)		(0.88	)		10.14		12.27	%		1,986		2.05	%		3.32	%		1.52	%		445.26	%
Class C:	4/1/2007 - 9/30/2007 (4),(5)	$	10.16	$	0.17	$	0.05		$	0.22		($	0.07	)	($	0.01	)	($	0.08	)	$	10.30		2.08	%	$	2,425		1.90	%		2.24	%		3.32	%		277.61	%
	4/1/2006 - 3/31/2007 (4)		9.98		0.29		0.22			0.51			(0.33	)		—			(0.33	)		10.16		5.23	%		2,642		1.96	%		2.39	%		2.92	%		477.64	%
	4/1/2005 - 3/31/2006 (4)		10.02		0.24		(0.06	)		0.18			(0.22	)		—			(0.22	)		9.98		1.75	%		2,082		2.05	%		2.50	%		2.34	%		534.38	%
	4/1/2004 - 3/31/2005 (4)		10.44		0.09		(0.09	)		—			(0.20	)		(0.22	)		(0.42	)		10.02		0.04	%		2,353		2.05	%		2.72	%		0.87	%		323.24	%
	4/1/2003 - 3/31/2004 (4)		10.14		0.12		0.46			0.58			(0.28	)		—			(0.28	)		10.44		5.86	%		2,315		2.05	%		3.36	%		1.15	%		459.70	%
	4/1/2002 - 3/31/2003 (4)		9.84		0.15		1.03			1.18			(0.32	)		(0.56	)		(0.88	)		10.14		12.28	%		4,573		2.05	%		3.32	%		1.52	%		445.26	%

See Notes to Financial Statements C-8 See explanation of references and symbols on C-11

PACIFIC LIFE FUNDS**

FINANCIAL HIGHLIGHTS (Continued)

Selected per share, ratios and supplemental data for each year or period ended were as follows:

				Investment Activities									Distributions											Ratios/Supplemental Data
For the Year or Period Ended		Net Asset Value, Beginning of Year or Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss)			Total from Investment Operations			Distributions from Net Investment Income			Distributions from Capital Gains			Total Distributions			Net Asset Value, End of Year or Period		Total Returns (1)			Net Assets, End of Year or Period (in thousands)		Ratios of Expenses After Expense Reductions to Average Net Assets (2), (3)			Ratios of Expenses Before Expense Reductions to Average Net Assets (3)			Ratios of Net Investment Income (Loss) to Average Net Assets (3)			Portfolio Turnover Rates
PL Inflation Managed Fund
Class A:	4/1/2007 - 9/30/2007 (4), (5)	$	10.13	$	0.33		($	0.02	)	$	0.31		($	0.29	)	$	—		$	(0.29	)	$	10.15		3.06	%	$	103,263		1.15	%		1.47	%		6.53	%		99.86	%
	4/1/2006 - 3/31/2007 (4)		10.00		0.26			0.14			0.40			(0.27	)		—			(0.27	)		10.13		4.15	%		82,340		1.39	%		1.78	%		2.60	%		356.40	%
	4/1/2005 - 3/31/2006 (4)		10.51		0.33			(0.36	)		(0.03	)		(0.47	)		(0.01	)		(0.48	)		10.00		(0.44	%)		66,103		1.55	%		1.89	%		3.21	%		188.82	%
	4/1/2004 - 3/31/2005 (4)		10.93		0.20			(0.01	)		0.19			(0.26	)		(0.35	)		(0.61	)		10.51		1.99	%		36,465		1.55	%		2.04	%		1.96	%		284.19	%
	4/1/2003 - 3/31/2004 (4)		10.28		0.12			0.96			1.08			(0.20	)		(0.23	)		(0.43	)		10.93		10.75	%		16,263		1.55	%		2.73	%		1.13	%		507.96	%
	12/31/2002 - 3/31/2003 (4)		10.00		0.06			0.27			0.33			(0.05	)		—			(0.05	)		10.28		3.30	%		6,290		1.55	%		4.00	%		2.19	%		199.92	%
Class B:	4/1/2007 - 9/30/2007 (4), (5)	$	10.06	$	0.29		($	0.02	)	$	0.27		($	0.25	)	$	—		($	0.25	)	$	10.08		2.70	%	$	828		1.90	%		2.22	%		5.78	%		99.86	%
	4/1/2006 - 3/31/2007 (4)		9.93		0.20			0.14			0.34			(0.21	)		—			(0.21	)		10.06		3.57	%		900		1.96	%		2.35	%		2.03	%		356.40	%
	4/1/2005 - 3/31/2006 (4)		10.45		0.28			(0.36	)		(0.08	)		(0.43	)		(0.01	)		(0.44	)		9.93		(0.91	%)		1,402		2.05	%		2.39	%		2.71	%		188.82	%
	4/1/2004 - 3/31/2005 (4)		10.89		0.15			(0.02	)		0.13			(0.22	)		(0.35	)		(0.57	)		10.45		1.43	%		1,199		2.05	%		2.54	%		1.46	%		284.19	%
	4/1/2003 - 3/31/2004 (4)		10.27		0.07			0.95			1.02			(0.17	)		(0.23	)		(0.40	)		10.89		10.20	%		697		2.05	%		3.23	%		0.63	%		507.96	%
	12/31/2002 - 3/31/2003 (4)		10.00		0.04			0.28			0.32			(0.05	)		—			(0.05	)		10.27		3.16	%		161		2.05	%		4.50	%		1.69	%		199.92	%
Class C:	4/1/2007 - 9/30/2007 (4), (5)	$	10.07	$	0.29		($	0.03	)	$	0.26		($	0.25	)	$	—		($	0.25	)	$	10.08		2.69	%	$	2,216		1.90	%		2.22	%		5.78	%		99.86	%
	4/1/2006 - 3/31/2007 (4)		9.93		0.20			0.15			0.35			(0.21	)		—			(0.21	)		10.07		3.56	%		2,739		1.96	%		2.35	%		2.03	%		356.40	%
	4/1/2005 - 3/31/2006 (4)		10.45		0.28			(0.37	)		(0.09	)		(0.42	)		(0.01	)		(0.43	)		9.93		(0.95	%)		4,142		2.05	%		2.39	%		2.71	%		188.82	%
	4/1/2004 - 3/31/2005 (4)		10.89		0.15			(0.01	)		0.14			(0.23	)		(0.35	)		(0.58	)		10.45		1.44	%		5,682		2.05	%		2.54	%		1.46	%		284.19	%
	4/1/2003 - 3/31/2004 (4)		10.27		0.07			0.95			1.02			(0.17	)		(0.23	)		(0.40	)		10.89		10.27	%		4,065		2.05	%		3.23	%		0.63	%		507.96	%
	12/31/2002 - 3/31/2003 (4)		10.00		0.04			0.28			0.32			(0.05	)		—			(0.05	)		10.27		3.11	%		480		2.05	%		4.50	%		1.69	%		199.92	%
PL Comstock Fund (14)
Class A:	4/1/2007 - 9/30/2007 (4), (5)	$	14.11	$	0.07		$	0.25		$	0.32		($	0.03	)	($	0.16	)	($	0.19	)	$	14.24		2.22	%	$	109,903		1.50	%		1.79	%		1.04	%		10.68	%
	4/1/2006 - 3/31/2007 (4)		12.92		0.12			1.55			1.67			(0.11	)		(0.37	)		(0.48	)		14.11		13.21	%		83,788		1.74	%		2.11	%		0.92	%		40.11	%
	4/1/2005 - 3/31/2006 (4)		12.58		0.10			0.83			0.93			(0.06	)		(0.53	)		(0.59	)		12.92		7.62	%		62,447		1.90	%		2.25	%		0.79	%		22.40	%
	4/1/2004 - 3/31/2005 (4)		11.37		0.07			1.19			1.26			(0.05	)		—			(0.05	)		12.58		11.08	%		23,017		1.90	%		2.70	%		0.55	%		34.41	%
	4/1/2003 - 3/31/2004 (4)		8.16		0.02			3.19			3.21			—			—			—			11.37		39.34	%		11,945		1.90	%		3.59	%		0.24	%		105.34	%
	4/1/2002 - 3/31/2003		11.45		(0.11	)		(3.12	)		(3.23	)		—			(0.06	)		(0.06	)		8.16		(28.26	%)		5,331		1.90	%		3.87	%		(1.04	%)		37.78	%
Class B:	4/1/2007 - 9/30/2007 (4), (5)	$	13.89	$	0.02		$	0.24		$	0.26		($	—	)(6)	($	0.16	)	($	0.16	)	$	13.99		1.85	%	$	691		2.25	%		2.54	%		0.29	%		10.68	%
	4/1/2006 - 3/31/2007 (4)		12.75		0.05			1.51			1.56			(0.05	)		(0.37	)		(0.42	)		13.89		12.49	%		686		2.31	%		2.68	%		0.35	%		40.11	%
	4/1/2005 - 3/31/2006 (4)		12.42		0.04			0.82			0.86			—			(0.53	)		(0.53	)		12.75		7.14	%		532		2.40	%		2.75	%		0.29	%		22.40	%
	4/1/2004 - 3/31/2005 (4)		11.24		0.01			1.17			1.18			—			—			—			12.42		10.50	%		388		2.40	%		3.20	%		0.05	%		34.41	%
	4/1/2003 - 3/31/2004 (4)		8.10		(0.03	)		3.17			3.14			—			—			—			11.24		38.77	%		453		2.40	%		4.09	%		(0.26	%)		105.34	%
	4/1/2002 - 3/31/2003		11.43		(0.11	)		(3.16	)		(3.27	)		—			(0.06	)		(0.06	)		8.10		(28.66	%)		201		2.40	%		4.37	%		(1.54	%)		37.78	%
Class C:	4/1/2007 - 9/30/2007 (4), (5)	$	13.86	$	0.02		$	0.23		$	0.25		$	—		($	0.16	)	($	0.16	)	$	13.95		1.77	%	$	1,021		2.25	%		2.54	%		0.29	%		10.68	%
	4/1/2006 - 3/31/2007 (4)		12.72		0.05			1.52			1.57			(0.06	)		(0.37	)		(0.43	)		13.86		12.58	%		1,195		2.31	%		2.68	%		0.35	%		40.11	%
	4/1/2005 - 3/31/2006 (4)		12.41		0.04			0.81			0.85			(0.01	)		(0.53	)		(0.54	)		12.72		7.05	%		938		2.40	%		2.75	%		0.29	%		22.40	%
	4/1/2004 - 3/31/2005 (4)		11.24		0.01			1.17			1.18			(0.01	)		—			(0.01	)		12.41		10.50	%		872		2.40	%		3.20	%		0.05	%		34.41	%
	4/1/2003 - 3/31/2004 (4)		8.11		(0.03	)		3.16			3.13			—			—			—			11.24		38.60	%		226		2.40	%		4.09	%		(0.26	%)		105.34	%
	4/1/2002 - 3/31/2003		11.43		(0.11	)		(3.15	)		(3.26	)		—			(0.06	)		(0.06	)		8.11		(28.57	%)		74		2.40	%		4.37	%		(1.54	%)		37.78	%

See Notes to Financial Statements C-9 See explanation of references and symbols on C-11

PACIFIC LIFE FUNDS**
FINANCIAL HIGHLIGHTS (Continued)
Selected per share, ratios and supplemental data for each year or period ended were as follows:

					Investment Activities									Distributions											Ratios/Supplemental Data
For the Year or Period Ended		Net Asset Value, Beginning of Year or Period			Net  Investment  Income  (Loss)			Net Realized and Unrealized Gain (Loss)			Total from Investment Operations			Distributions from Net Investment Income			Distributions from Capital Gains			Total Distributions			Net Asset Value, End of Year or Period		Total Returns (1)			Net Assets, End of Year or Period (in thousands)		Ratios of Expenses After Expense Reductions to Average Net Assets (2), (3)			Ratios of Expenses Before Expense Reductions to Average Net Assets (3)			Ratios of Net Investment Income (Loss) to Average Net Assets (3)			Portfolio Turnover Rates
PL Mid-Cap Growth Fund (15)
Class A:	4/1/2007 - 9/30/2007 (4),(5)	$	10.93			($—	)(6)	$	2.10		$	2.10		$	—			($0.43	)		($0.43	)	$	12.60		19.58	%	$	81,059		1.45	%		1.77	%		(0.01	%)		31.67	%
	4/1/2006 - 3/31/2007 (4)		11.67			(0.07	)		0.31			0.24			—			(0.98	)		(0.98	)		10.93		2.64	%		63,462		1.68	%		2.08	%		(0.64	%)		60.08	%
	4/1/2005 - 3/31/2006 (4)		8.93			(0.11	)		2.85			2.74			—			—			—			11.67		30.68	%		39,980		1.85	%		2.29	%		(1.04	%)		107.64	%
	4/1/2004 - 3/31/2005 (4)		8.01			(0.12	)		1.04			0.92			—			—			—			8.93		11.49	%		36,882		1.85	%		2.43	%		(1.37	%)		82.70	%
	4/1/2003 - 3/31/2004 (4)		5.92			(0.10	)		2.19			2.09			—			—			—			8.01		35.30	%		18,388		1.85	%		3.29	%		(1.42	%)		326.09	%
	4/1/2002 - 3/31/2003		11.18			(0.09	)		(4.33	)		(4.42	)		—			(0.84	)		(0.84	)		5.92		(40.51	%)		6,191		1.85	%		4.31	%		(1.39	%)		158.16	%
Class B:	4/1/2007 - 9/30/2007 (4),(5)	$	10.64			($0.04	)	$	2.04		$	2.00		$	—			($0.43	)		($0.43	)	$	12.21		19.17	%	$	1,275		2.20	%		2.52	%		(0.76	%)		31.67	%
	4/1/2006 - 3/31/2007 (4)		11.45			(0.13	)		0.30			0.17			—			(0.98	)		(0.98	)		10.64		2.03	%		1,075		2.25	%		2.65	%		(1.22	%)		60.08	%
	4/1/2005 - 3/31/2006 (4)		8.80			(0.15	)		2.80			2.65			—			—			—			11.45		30.11	%		948		2.35	%		2.79	%		(1.54	%)		107.64	%
	4/1/2004 - 3/31/2005 (4)		7.93			(0.15	)		1.02			0.87			—			—			—			8.80		10.97	%		667		2.35	%		2.93	%		(1.87	%)		82.70	%
	4/1/2003 - 3/31/2004 (4)		5.88			(0.14	)		2.19			2.05			—			—			—			7.93		34.86	%		504		2.35	%		3.79	%		(1.92	%)		326.09	%
	4/1/2002 - 3/31/2003		11.17			(0.08	)		(4.37	)		(4.45	)		—			(0.84	)		(0.84	)		5.88		(40.84	%)		586		2.35	%		4.81	%		(1.89	%)		158.16	%
Class C:	4/1/2007 - 9/30/2007 (4),(5)	$	10.62			($0.04	)	$	2.03		$	1.99		$	—		$	(0.43	)		($0.43	)	$	12.18		19.11	%	$	1,373		2.20	%		2.52	%		(0.76	%)		31.67	%
	4/1/2006 - 3/31/2007 (4)		11.42			(0.13	)		0.31			0.18			—			(0.98	)		(0.98	)		10.62		2.13	%		1,431		2.25	%		2.65	%		(1.22	%)		60.08	%
	4/1/2005 - 3/31/2006 (4)		8.79			(0.15	)		2.78			2.63			—			—			—			11.42		29.92	%		2,460		2.35	%		2.79	%		(1.54	%)		107.64	%
	4/1/2004 - 3/31/2005 (4)		7.92			(0.16	)		1.03			0.87			—			—			—			8.79		10.99	%		1,436		2.35	%		2.93	%		(1.87	%)		82.70	%
	4/1/2003 - 3/31/2004 (4)		5.88			(0.14	)		2.18			2.04			—			—			—			7.92		34.69	%		958		2.35	%		3.79	%		(1.92	%)		326.09	%
	4/1/2002 - 3/31/2003		11.16			(0.09	)		(4.35	)		(4.44	)		—			(0.84	)		(0.84	)		5.88		(40.78	%)		1,141		2.35	%		4.81	%		(1.89	%)		158.16	%
PL Real Estate Fund
Class A:	4/1/2007 - 9/30/2007 (4),(5)	$	14.94		$	0.04			($1.10	)		($1.06	)		($0.09	)		($0.47	)		($0.56	)	$	13.32		(7.09	%)	$	37,949		1.65	%		2.08	%		0.52	%		19.48	%
	4/1/2006 - 3/31/2007 (4)		12.89			0.04			3.01			3.05			(0.05	)		(0.95	)		(1.00	)		14.94		24.19	%		31,504		1.89	%		2.42	%		0.27	%		36.83	%
	4/1/2005 - 3/31/2006 (4)		9.39			0.05			3.70			3.75			(0.17	)		(0.08	)		(0.25	)		12.89		40.43	%		25,552		2.05	%		2.76	%		0.41	%		9.81	%
	12/31/2004 - 3/31/2005 (4)		10.00			0.05			(0.64	)		(0.59	)		(0.02	)		—			(0.02	)		9.39		(5.95	%)		13,853		2.05	%		3.57	%		2.01	%		0.79	%
Class B:	4/1/2007 - 9/30/2007 (4),(5)	$	14.84			($0.02	)		($1.07	)		($1.09	)		($0.02	)		($0.47	)		($0.49	)	$	13.26		(7.33	%)	$	104		2.40	%		2.83	%		(0.23	%)		19.48	%
	4/1/2006 - 3/31/2007 (4)		12.85			(0.04	)		3.00			2.96			(0.02	)		(0.95	)		(0.97	)		14.84		23.53	%		177		2.46	%		2.99	%		(0.30	%)		36.83	%
	4/1/2005 - 3/31/2006 (4)		9.39	��		(0.01	)		3.70			3.69			(0.15	)		(0.08	)		(0.23	)		12.85		39.65	%		97		2.55	%		3.26	%		(0.09	%)		9.81	%
	12/31/2004 - 3/31/2005 (4)		10.00			0.04			(0.64	)		(0.60	)		(0.01	)		—			(0.01	)		9.39		(6.05	%)		17		2.55	%		4.07	%		1.51	%		0.79	%
Class C:	4/1/2007 - 9/30/2007 (4),(5)	$	14.81			($0.02	)		($1.08	)		($1.10	)		($0.03	)		($0.47	)		($0.50	)	$	13.21		(7.38	%)	$	296		2.40	%		2.83	%		(0.23	%)		19.48	%
	4/1/2006 - 3/31/2007 (4)		12.85			(0.04	)		2.98			2.94			(0.03	)		(0.95	)		(0.98	)		14.81		23.42	%		333		2.46	%		2.99	%		(0.30	%)		36.83	%
	4/1/2005 - 3/31/2006 (4)		9.38			(0.01	)		3.70			3.69			(0.14	)		(0.08	)		(0.22	)		12.85		39.74	%		114		2.55	%		3.26	%		(0.09	%)		9.81	%
	12/31/2004 - 3/31/2005 (4)		10.00			0.03			(0.64	)		(0.61	)		(0.01	)		—			(0.01	)		9.38		(6.06	%)		32		2.55	%		4.07	%		1.51	%		0.79	%

See Notes to Financial Statements C-10 See explanation of references and symbols on C-11

PACIFIC LIFE FUNDS**
FINANCIAL HIGHLIGHTS (Continued)
Explanation of References and Symbols

**	See Note 1 to Financial Statements regarding name changes which occurred during the year ended March 31, 2007.
(1)	The total returns include reinvestment of all dividends and capital gain distributions, if any, and do not include deductions of any applicable sales charges. Total returns are not annualized for periods less than one full year.
(2)	The ratios of net expenses after expense reductions to average daily net assets are after any adviser expense reimbursements, administrator fee reductions, and distributor fee waivers, as discussed in Note 5 to the Financial Statements. Additionally, non 12b-1 service fees for Class A shares were reduced by 0.25% effective January 1, 2007. The expense ratios for all the PL Portfolio Optimization Funds do not include expenses of the underlying funds (see Note 1 to Financial Statements) in which the PL Portfolio Optimization Funds invest.
(3)	The ratios are annualized for periods of less than one full year.
(4)	Per share investment income has been calculated using the average shares method.
(5)	Unaudited.
(6)	Amount represents less than $0.005 per share or less than 0.005%.
(7)	Class B and C shares of the PL Money Market Fund were converted to Class A shares on June 29, 2005.
(8)	The expense cap for the PL Money Market Class A was 0.05% for the period July 1, 2002 to June 30, 2005. From July 1, 2005 to August 31, 2006 the expense cap was 0.45%. Subsequent to August 31, 2006 the expense cap was 0.30%.
(9)	Prior to October 1, 2005, the PL Small-Cap Growth Fund was named the PF AIM Aggressive Growth Fund.
(10)	Prior to May 1, 2006, the PL International Value Fund was named PF Lazard International Value Fund.
(11)	Prior to January 1, 2006, the PL Large-Cap Growth Fund was named the PF AIM Blue Chip Fund.
(12)	Prior to January 1, 2004, the PL International Large-Cap Fund was named the PF MFS Global Growth Fund.
(13)	Operations commenced on June 29, 2007.
(14)	Prior to May 1, 2003, the PL Comstock Fund was named the PF Janus Strategic Value Fund.
(15)	Prior to May 1, 2003, the PL Mid-Cap Growth Fund was named the PF MFS Mid-Cap Growth Fund.

C-11

[THIS PAGE INTENTIONALLY LEFT BLANK]

PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

1. ORGANIZATION

          Pacific Life Funds (formerly Pacific Funds) is a Delaware statutory trust, which was formed on May 21, 2001, and is registered under the Investment Company Act of 1940 (“1940 Act”), as amended, as an open-end management investment company, and as of September 30, 2007, was comprised of twenty-two separate funds (each individually, a “Fund”, and collectively, the “Funds”):

Current Name	Former Name Prior to January 1, 2007
PL Portfolio Optimization Conservative	PF Portfolio Optimization Model A
PL Portfolio Optimization Moderate-Conservative	PF Portfolio Optimization Model B
PL Portfolio Optimization Moderate	PF Portfolio Optimization Model C
PL Portfolio Optimization Moderate-Aggressive	PF Portfolio Optimization Model D
PL Portfolio Optimization Aggressive	PF Portfolio Optimization Model E
PL Money Market Fund	PF Pacific Life Money Market Fund
PL Small-Cap Growth Fund	PF NB Fasciano Small Equity Fund
PL International Value Fund	PF AllianceBernstein International Value Fund, prior to May 1, 2006, the Fund was named PF Lazard International Value Fund
PL Large-Cap Value Fund	PF Salomon Brothers Large-Cap Value Fund
PL Short Duration Bond Fund	PF Goldman Sachs Short Duration Bond Fund
PL Growth LT Fund	PF Janus Growth LT Fund
PL Mid-Cap Value Fund	PF Lazard Mid-Cap Value Fund
PL Large-Cap Growth Fund	PF Loomis Sayles Large-Cap Growth Fund
PL International Large-Cap Fund	PF MFS International Large-Cap Fund
PL Small-Cap Value Fund (1)
PL Main Street® Core Fund (2)	PF Oppenheimer Main Street Core Fund
PL Emerging Markets Fund	PF Oppenheimer Emerging Markets Fund
PL Managed Bond Fund	PF PIMCO Managed Bond Fund
PL Inflation Managed Fund	PF PIMCO Inflation Managed Fund
PL Comstock Fund	PF Van Kampen Comstock Fund
PL Mid-Cap Growth Fund	PF Van Kampen Mid-Cap Growth Fund
PL Real Estate Fund	PF Van Kampen Real Estate Fund

(1)	Commenced operations on June 29, 2007.
(2)	Main Street is a registered trademark of OppenheimerFunds, Inc.

          Each Fund, with the exception of PL Money Market, PL Small-Cap Value, PL Main Street Core, and PL Emerging Markets Funds, has at least three separate classes of shares: Class A, B, and C. PL Money Market, PL Small-Cap Value, PL Main Street Core, and PL Emerging Markets Funds offer Class A shares only. PL Portfolio Optimization Conservative, PL Portfolio Optimization Moderate-Conservative, PL Portfolio Optimization Moderate, PL Portfolio Optimization Moderate-Aggressive and PL Portfolio Optimization Aggressive, (collectively, the “Portfolio Optimization Funds”) also offer Class R shares. Presently, only the Portfolio Optimization Funds can invest in PL Small-Cap Value, PL Main Street Core, and PL Emerging Markets Funds. Each class is distinguished by its level of distribution and/or service fees and in general: (i) Class A shares are subject to a maximum 5.50% front-end sales charge; (ii) Class B shares are subject to a maximum 5.00% contingent deferred sales charge (“CDSC”); (iii) Class C shares are subject to a maximum 1.00% CDSC; and (iv) Class R shares are sold at net asset value (“NAV”) without an initial sales charge. The sales charge for Class A shares is reduced for purchases of $50,000 or more and may be waived in certain circumstances. There is no sales charge for Class A shares for purchases of $1 million or more, although there is a CDSC of 1% on redemptions of such Class A shares within one year of purchase. Class A shares of PL Money Market Fund are sold at NAV without an initial sales charge.

          The Portfolio Optimization Funds invest all of their assets in Class A shares of other funds of Pacific Life Funds (collectively, the “Underlying Funds”) without payment of a front-end sales charge. No CDSC is charged to the Portfolio Optimization Funds upon the sales of shares of the Underlying Funds. An asset allocation process is used to determine each of the Portfolio Optimization Funds’ investment mixes. The Portfolio Optimization Funds use a monthly allocation percentage (“MAP”) method, which considers the value of the Underlying Funds and a sales forecast for the upcoming month, to invest purchase proceeds and meet redemption needs. This method is intended to help maintain target allocations, although there is no guarantee that the Portfolio Optimization Funds will maintain their target allocations using this method. If an underlying fund’s actual allocations were to deviate substantially from its target allocations, rebalancing might be used in addition to MAP. Actual holdings of the Portfolio Optimization Funds could vary from their target allocations due to actual cash flows and changes to the Underlying Funds’ asset values as a result of market movements and portfolio management decisions. The asset allocation strategy of each Portfolio Optimization Fund is periodically evaluated by an independent statistical research service and the target allocations may be updated at that time. When target allocations are updated, a process known as reallocation is used. The reallocation process may be accomplished by using rebalancing to move the assets among the Underlying Funds, or by using MAP methodology, or by using a combination of the two. Reallocation may cause the Portfolio Optimization Funds to temporarily deviate from their target allocations. The Funds offered by Pacific Life Funds may change and Underlying Funds may be added to or deleted from a Portfolio Optimization Fund. The asset class allocations, Underlying Funds (including any funds organized in the future), or target allocations with respect to each Underlying Fund may be changed without prior approval from shareholders as determined necessary to pursue stated investment goals. The target allocation percentages as well as other information on the Portfolio Optimization Funds is described in the prospectuses.

2. SIGNIFICANT ACCOUNTING POLICIES

          The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for investment companies. These principles require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the Funds in the preparation of the financial statements.

D-1

PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)

          A. Fund Valuation

          The NAV per share for each Fund is calculated once a day, every day the New York Stock Exchange (“NYSE”) is open, including when foreign markets are closed. For purposes of calculating the NAV, the Funds use pricing data as of the time of the close of the NYSE, which is usually 4:00 p.m. Eastern time, although it occasionally closes earlier. The NAV of the Portfolio Optimization Funds is calculated based on the NAVs calculated for each of the Underlying Funds.

          Equity securities are generally valued at the last reported sale price for securities traded on a principal exchange (U.S. or foreign). Securities, including option contracts, traded on over-the-counter markets and listed securities for which no sales are reported, are generally valued at the mean between the most recent bid and asked quotations obtained from a quotation and valuation reporting system, from established market makers, or from broker-dealers. Fixed income securities are generally valued at evaluated prices obtained from pricing services and quotation reporting systems, or the mean between bid and ask quotations provided by such providers, or by market makers, or broker-dealers. Bank loans are valued at the mean between bid and ask quotations, provided by pricing services. If ask quotations are not available, securities and loans may be valued at bid quotations or evaluated prices. Certain bonds are valued by benchmark, matrix, or other pricing processes approved by the Funds’ Board of Trustees (the “Board”). Money market instruments and short-term securities maturing within sixty days are valued at amortized cost, which approximates market value.

          Securities for which market quotations are not readily available or are deemed to be unreliable or inaccurate are valued at their fair value as determined in good faith pursuant to procedures established by the Board. Fair values may not be indicative of the price that a Fund could obtain for a security if it were to dispose of the security as of the close of the NYSE.

          In determining the fair value of securities, the Funds may consider available information, including information that becomes known after the time of close of the NYSE, and the values that are determined will be deemed to be the price as of the time of the close of the NYSE.

          If events occur between the time of the determination of the closing price of a foreign security on an exchange or over-the-counter market and the time that the Fund’s NAV is determined, or if, under the Funds’ procedures, the closing price of a foreign security is not deemed to be reliable, and there could be a material effect on a Fund’s NAV, the security would be valued at fair value as determined in accordance with procedures and methodologies approved by the Board.

          The Funds have retained a statistical research service to assist in determining the fair value of foreign securities. This service utilizes proprietary computer models based on historical performance of markets and other considerations to determine fair values for certain foreign securities. These fair values may not be indicative of the price that a Fund could obtain for a foreign security if it were to dispose of the security as of the close of the NYSE.

          B. Securities Transactions and Investment Income

          Securities transactions are recorded on a trade date basis. Securities purchased or sold on a when-issued or delayed-delivery basis as well as certain loan transactions and mortgage securities (such as Government National Mortgage Association (GNMA) Securities), if any, may be settled a month or more after the trade date. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities are recorded as soon as a Fund is informed of the ex-dividend date or upon receipt of the dividend. A Fund’s estimated components of distributions received from real estate investment trusts may be considered return of capital distributions or capital gain distributions. Return of capital distributions are recorded as a reduction of cost of the related investments. Interest income is recorded on an accrual basis. Interest income includes coupon interest and amortization of premium and discount on debt securities. Accretion of discounts and amortization of premiums are recorded on a daily basis using the effective yield method except for short-term securities and the PL Money Market Fund, which record discounts and premiums on a straight-line basis. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. The Funds may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Funds will accrue such taxes and reclaims as applicable, based upon their current interpretation of tax rules and regulations that exist in the markets in which the Funds invest. Realized gains and losses from securities transactions are recorded on the basis of identified cost, which is also used for Federal income tax purposes. Gains and losses realized on principal paydowns from mortgage- and asset-backed securities are recorded as interest income in the Statements of Operations.

          Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to distribution and/or service fees (see Note 3). Income, other non-class specific expenses, and realized and unrealized gains and losses on investments are allocated to each class of shares based on its relative daily net assets.

          C. Distributions to Shareholders

          The Funds currently declare and pay dividends on net investment income at least annually, except for the PL Money Market, PL Short Duration Bond, PL Managed Bond, PL Inflation Managed, and PL Real Estate Funds. Dividends are generally:

1) declared daily and paid monthly for the PL Money Market Fund;

2) declared and paid monthly for the PL Short Duration Bond, PL Managed Bond, and PL Inflation Managed Funds; and

3) declared and paid quarterly for the PL Real Estate Fund. Dividends may be declared more or less frequently if advantageous to the specific Fund and its shareholders. All realized capital gains are distributed at least annually for all Funds.

          Dividends on net investment income and capital gain distributions are determined in accordance with income tax

D-2

PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)

regulations, which may differ from U.S. GAAP. These differences are primarily due to differing treatments for futures and options, foreign currency transactions, passive foreign investment companies, post-October losses, capital loss carryforwards, and losses deferred due to wash sales. Permanent book and tax differences relating to shareholder distributions will result in reclassifications of paid-in capital. Dividends and distributions paid to shareholders are recorded on the ex-dividend date.

          D. Foreign Currency Translation

          Assets and liabilities initially expressed in non-U.S. currencies are translated into U.S. dollars based on the applicable exchange rates at the date of valuation. Purchases and sales of securities, interest income and dividends and variation margin received, and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rates in effect on the transaction date.

          The Funds do not separately report on the Statements of Operations the effect of changes in foreign exchange rates from changes in market prices of securities held. Such changes are included in net realized gain or loss and change in unrealized appreciation or depreciation from investments.

          Net realized foreign exchange gains and losses arise from sales of a Fund’s securities, sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on each Fund’s books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange appreciation and depreciation arise from changes in the value of assets and liabilities, including investments in securities at the period-end, resulting from changes in the exchange rate.

          E. Expense Allocation

          Typically, general expenses of the Funds are allocated to each Fund in proportion to its relative daily net assets. Expenses directly attributable to a particular Fund are charged directly to that Fund. Class-specific fees are charged directly to the respective share class within each Fund.

          F. Offering Costs

          The Funds bear all costs associated with offering expenses including legal, printing and support service expenses. All such costs are amortized to expense of the new Funds on a straight-line basis over twelve months from commencement of operations.

          G. Futures Contracts

          Certain Funds may enter into futures contracts to manage their exposure to the stock markets, fluctuations in interest rates, and foreign currency values. Initial margin deposits are made upon entering into futures contracts and can be 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. The primary risks associated with the use of futures contracts are the possibility of illiquid markets or imperfect correlation between the value of the instruments and the underlying securities, or that the counterparty will fail to perform its obligations. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.

          H. Options Contracts

          Certain Funds may write and/or purchase call and put options on securities, futures, interest rate swaps (“swaptions”), or currencies. Writing put options or purchasing call options tends to increase a Fund’s exposure to the underlying instrument. Writing call options or purchasing put options tends to decrease a Fund’s exposure to the underlying instrument. When a Fund writes or purchases a call or put option, an amount equal to the premium received or paid by the Fund is included in a Fund’s Statement of Assets and Liabilities as a liability or an investment 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 received 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 futures, swap, security or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the futures, swap, security or currency underlying the written option. There is the risk a Fund may not be able to enter into a closing transaction because of an illiquid market. The risk associated with purchasing put and call options is limited to the premium paid.

          I. Forward Foreign Currency Contracts

          Certain Funds may enter into forward foreign currency contracts (“forward contracts”) for the purpose of hedging against foreign exchange risk arising from a Fund’s investment in foreign securities. These contracts are marked-to-market daily at the applicable 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. The change, if any, is recorded as unrealized appreciation or depreciation in the Statements of Operations. Risks may arise upon entering these contracts from the potential inability of a counterparty to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar or other currencies.

D-3

PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)

          J. Swaps

          Certain Funds may enter into interest rate, total return, credit default, and other swap agreements in order to obtain a desired return at a lower cost than if a Fund had invested directly in the asset that yielded the desired return and to manage its exposure to interest and other financial risks. Swaps involve commitments to exchange components of income (generally interest or returns) pegged to the underlying assets based on a notional principal amount. In connection with these agreements, securities may be identified as collateral in accordance with the terms and the respective swap agreements.

          Interest rate swap agreements involve the exchange by a Fund with another party of their respective commitments to pay or receive interest. For example, an exchange of floating rate payments for fixed rate payments with respect to the notional amount of principal.

          Total return swap agreements involve commitments to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index 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.

          Credit default swap agreements 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 by a third party, typically corporate issues or sovereign issues of an emerging country, on its obligation. A Fund may use credit default swaps to provide a measure of protection against defaults of sovereign issuers (i.e., to reduce risk where a Fund owns or has exposure to the sovereign issuer) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. As a seller of protection, a Fund generally receives an upfront payment or 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 portfolio because, in addition to its net assets, a Fund would be subject to investment exposure on the notional amount of the swap.

          Swaps are marked-to-market daily based upon quotations from market makers and the change in value, if any, is recorded as unrealized appreciation or depreciation in the Statements of Operations. Payments received or made at the beginning of the measurement period are reflected as such in the Statements of Assets and Liabilities. These upfront payments are included in the calculation of realized gain or loss in the Statements of Operations, when the swap is closed. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss in the Statements of Operations. Net periodic payments received by the portfolios are included as part of realized gain (loss) in the Statements of Operations. Entering into these agreements involves, to varying degrees, elements of credit, market and documentation risk in excess of the amounts recognized in the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligations to perform or disagree as to the meaning of contractual terms in the agreements, and that there may be unfavorable changes in interest rates.

          K. Senior Loan Participations and Assignments

          Certain Funds may invest in floating rate senior loans (“Senior Loans”), the interest rates of which float or adjust periodically based upon a specified adjustment schedule, benchmark indicator, or prevailing interest rates of domestic or foreign corporations, partnerships and other entities (“Borrowers”). A Fund’s investments in 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 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, but not with the Borrower directly. When investing in a loan participation, a Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the loan agreement and only upon receipt by the lender of payments from the Borrower. A Fund generally has no right to enforce compliance with the terms of the loan agreement with the Borrower. As a result, the Fund assumes the credit risk of the Borrower, selling participant, or other persons interpositioned between the Fund and the Borrower. If the lead lender in a typical lending syndicate becomes insolvent, enters FDIC receivership or, if not FDIC insured, enters into bankruptcy, the Fund may incur certain costs and delays in receiving payment or may suffer a loss of principal and/or interest. When a Fund purchases assignments from lenders it acquires direct rights against the Borrower on the loan.

          L. Inflation-Indexed Bonds

          Certain Funds may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed income securities whose principal value is periodically adjusted to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value, which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will result in an adjustment of interest income in the Statements of Operations.

          M. Stripped Mortgage-Backed Securities

          Certain Funds may invest in stripped mortgage-backed securities (“SMBS”). 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. IOs are subject to accelerated principal paydowns as a result of prepayment or refinancing of underlying pool of mortgage instruments. As a result, interest income on IOs may be reduced considerably. The market value of IOs is extremely volatile in response to changes in market interest rates. As prepayments on the underlying mortgages of POs increase, the yield on POs increases. Payments received for IOs are included in interest income in the Statements of Operations. Because principal will not be received at the maturity

D-4

PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)

of an IO, adjustments are made to book value of the security on each coupon date until maturity. These adjustments are included in interest income in the Statements of Operations. Payments received for POs are treated as reductions to the cost and par value of the securities. Any paydown gains or losses associated with the payments received are reported as interest income in the Statements of Operations.

          N. Equity-Linked Structured Notes

          Certain Funds may invest in equity-linked structured notes. Equity-linked structured notes are derivative securities which are specially designed to combine the characteristics of one or more underlying securities and their equity derivatives in a single note form. The return and/or yield or income component may be based on the performance of the underlying equity securities, an equity index, and/or option positions. Equity-linked structured notes are typically offered in limited transactions by financial institutions in either registered or non-registered form. An investment in equity-linked notes creates exposure to the credit risk of the issuing financial institution, as well as to the market risk of the underlying securities. There is no guaranteed return of principal with these securities and the appreciation potential of these securities may be limited by a maximum payment or call right. In certain cases, equity-linked notes may be more volatile and less liquid than less complex securities or other types of fixed-income securities. Such securities may exhibit price behavior that does not correlate with other fixed-income securities.

          O. Government Sponsored Enterprise Securities

          Certain Funds may invest in securities issued by the Federal Home Loan Mortgage Corporation (“Freddie Mac”) and similar U.S. Government sponsored entities such as Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Banks (“FHLB’s”). Freddie Mac, Fannie Mae, and the FHLB’s, although chartered and sponsored by Congress, are not funded by Congressional appropriations. The debt and mortgage-backed securities issued by these entities are neither guaranteed nor insured by the U.S. Government.

          P. 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.

          Q. 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 when-issued securities before they are delivered, which may result in a capital gain or loss. When a Fund has sold a security on a delayed-delivery basis, the Fund does not participate in future gains and losses with respect to the security.

          R. 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 in anticipation of a decline in the market price of the securities. A Fund is obligated to deliver securities at the market price at the time the short position is closed. Possible losses from short sales may be unlimited.

          S. Inverse Floater Structures

          Certain Funds may invest in residual certificates issued by tender option bond trusts (“TOB’s”). A TOB is established by a third party sponsor forming a special purpose entity, into which a Fund, or an agent on behalf of a Fund, transfers municipal securities. A TOB typically issues two classes of beneficial interests: short-term floating rate trust certificates (“floating rate certificates”), which are sold to third party investors, and residual certificates (“TOB Residuals”), which are generally issued to a Fund which made the transfer. The transfer of the municipal securities to a TOB is accounted for as secured borrowings. Therefore, the municipal securities deposited into a TOB are presented in the Funds’ Schedules of Investments and the proceeds from the transaction are reported as floating rate certificates payable of the Funds. Interest income from the underlying security is recorded by the Funds on an accrual basis. Interest expense incurred on the floating rate certificates and other expenses related to remarketing, administration and trustee services to a TOB is reported as an expense of the Funds. The floating rate certificates have interest rates that generally reset weekly and their holders have the option to tender the floating rate certificates to the TOB for redemption at par at each reset date. The TOB Residuals’ interests held by the Funds include the right of the Funds to (1) cause the holders of a proportional share of the floating rate certificates to tender their certificates at par, and (2) transfer a corresponding share of the municipal securities from the TOB to the Funds.

          Financial transactions executed through TOB’s generally will under perform the market for fixed rate municipal bonds in a rising interest rate environment, but tend to outperform the market for fixed rate bonds when interest rates decline or remain relatively stable. Should short-term interest rates rise, a Fund’s investments in TOB Residuals likely will adversely affect a Fund’s net

D-5

PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)

investment income and distributions to shareholders. Fluctuations in the market value of municipal securities deposited into the TOB may adversely affect a Fund’s net asset value per share.

          T. Repurchase Agreements

          Certain Funds may invest in repurchase agreements. Repurchase agreements permit the investor to maintain liquidity and earn income over periods of time as short as overnight. Repurchase agreements held by a Fund are fully collateralized by U.S. Government securities, or securities issued by U.S.Government agencies, or securities that are within the three highest credit categories assigned by established rating agencies (Aaa, Aa, or A by Moody’s Investors Service, Inc. (“Moody’s”) or AAA, AA or A by Standard & Poor’s Corporation (“Standard & Poor’s”)) or, if not rated by Moody’s or Standard & Poor’s, are of equivalent investment quality as determined by the investment adviser or the applicable portfolio manager. Such collateral is in the possession of the Funds’ custodian or a designated broker-dealer. The collateral is evaluated daily to ensure its market value equals or exceeds the current market value of the repurchase agreements including accrued interest. In the event of default on the obligation to repurchase, a Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation.

          U. New Accounting Pronouncements

          In June 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation 48 (“FIN 48”), Accounting for Uncertainty in Income Taxes. FIN 48 establishes the minimum threshold for recognizing the benefits of tax-return positions in the financial statements as “more-likely-than-not” to be sustained by the taxing authority and requires measurement of a tax position meeting the more-likely-than-not criterion, based on the largest benefit that is more than 50 percent likely to be realized. Effective September 28, 2007, the Funds adopted FASB Staff Position No. FIN 48-1, which provided added guidance on how to determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits. The Funds adopted FIN 48 on September 28, 2007 with no impact on net assets or the financial statements.

          In addition, in September 2006, the FASB issued Statement of Financial Accounting Standards No. 157 (“SFAS 157”), Fair Value Measurements, which defines fair value, establishes a framework for measuring fair value in U.S. GAAP, and expands disclosures about fair value measurements. SFAS 157 emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability. SFAS 157 will be effective for certain financial statements for fiscal years beginning after November 15, 2007. Management is currently evaluating the potential impact, if any, the adoption of SFAS 157 will have on the Funds’ financial statement disclosures.

          V. General Investment Risk

          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.

          Fixed income securities are affected primarily by the financial condition of the companies that have issued them, and by changes in interest rates. A fixed income security’s issuer (including borrowers) may not be able to meet its financial obligations (e.g., may not be able to make principal and/or interest payments when they are due or otherwise default on other financial terms) and/or go bankrupt. Securities such as high yield/high-risk bonds, i.e. bonds with low credit ratings by Moody’s (Ba and lower) or Standard & Poor’s (BB and Lower) or no rating, are especially subject to credit risk during periods of economic uncertainty or during economic downturns and are more likely to default on their interest and/or principal payments than higher rated securities. Certain asset-backed instruments, such as collateralized debt obligations, collateralized mortgage obligations, structured investment vehicles and others 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 affected by downturns in the credit markets or the real estate market, and it may be difficult to value these instruments because of a thin secondary market.

          There are certain additional risks involved in investing in foreign securities that are not inherent in investments in domestic securities. These risks may involve foreign currency fluctuations, adverse political, social and economic developments and the possible imposition of currency exchange blockages or other foreign governmental laws or restrictions. In addition, the securities of some foreign companies and securities markets are less liquid and at times more volatile than securities of comparable U.S. companies and U.S. securities markets. The markets in emerging markets countries can be extremely volatile.

          With respect to the Portfolio Optimization Funds, asset allocation does not guarantee future results. Investment in an individual fund or funds in a single asset class may outperform or underperform an asset allocation fund.

          Each Fund may not invest in illiquid securities if as a result of such investment, more than 15% (10% for the PL Money Market Fund) of its net assets would be invested in illiquid securities. The term “illiquid securities” for this purpose means securities that cannot be disposed of within seven days in the ordinary course of business at approximately the amount at which a Fund has valued the securities. The market value of illiquid securities held by each Fund as of September 30, 2007 was less than 15% (10% for the PL Money Market Fund) of its net assets.

          For additional risks, refer to discussions on specific types of investments in Notes 2G through 2T above.

D-6

PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)

3. INVESTMENT ADVISORY, ADMINISTRATION AND SHAREHOLDER SERVICES, AND DISTRIBUTION AGREEMENTS

          Pursuant to an Investment Advisory Agreement, Pacific Life Fund Advisors LLC (“PLFA”), a wholly-owned subsidiary of Pacific Life Insurance Company (“Pacific Life”), serves as investment adviser to the Funds. Prior to May 1, 2007, Pacific Life served as investment adviser to the Funds. During the period April 1, 2007 through April 30, 2007 and the period May 1, 2007 through September 30, 2007, Pacific Life and PLFA, respectively, earned advisory fees from the Funds at the following advisory fee rates, which are based on the average daily net assets of each Fund. The fees were accrued daily by the Funds:

PL Money Market	See (1)		PL Small-Cap Value (2)	0.95	%
PL Small-Cap Growth	1.00	%	PL Main Street Core	0.65	%
PL International Value	0.85	%	PL Emerging Markets	1.00	%
PL Large-Cap Value	0.85	%	PL Managed Bond	0.60	%
PL Short Duration Bond	0.60	%	PL Inflation Managed	0.60	%
PL Growth LT	0.75	%	PL Comstock	0.95	%
PL Mid-Cap Value	0.85	%	PL Mid-Cap Growth	0.90	%
PL Large-Cap Growth	0.95	%	PL Real Estate	1.10	%
PL International Large-Cap	1.05	%

(1)	An annual rate of 0.40% of the first $250 million of the average daily net assets, 0.35% of the next $250 million, and 0.30% in excess of $500 million.
(2)	Operations commenced on June 29, 2007.

          PLFA and Pacific Life received no fees for the investment advisory services under the Investment Advisory Agreement with respect to the Portfolio Optimization Funds. The Portfolio Optimization Funds did indirectly bear the advisory fees paid by the Underlying Funds in which they invested.

          Pursuant to Fund Management Agreements, the Funds and PLFA engage other portfolio managers under PLFA’s supervision for sixteen of the twenty-two Funds. As of September 30, 2007, the following firms serve as sub-advisers for their respective Funds: Fred Alger Management, Inc. for the PL Small-Cap Growth Fund; AllianceBernstein L.P. for the PL International Value Fund; ClearBridge Advisors, LLC for the PL Large-Cap Value Fund; Goldman Sachs Asset Management, L.P. for the PL Short Duration Bond Fund; Janus Capital Management LLC for the PL Growth LT Fund; Lazard Asset Management LLC for the PL Mid-Cap Value Fund; Loomis, Sayles & Company, L.P. for the PL Large-Cap Growth Fund; MFS Investment Management for the PL International Large-Cap Fund; NFJ Investment Group L.P. for the PL Small-Cap Value Fund; OppenheimerFunds, Inc. for the PL Main Street Core and PL Emerging Markets Funds; Pacific Investment Management Company LLC for the PL Managed Bond and PL Inflation Managed Funds; and Van Kampen for the PL Comstock, PL Mid-Cap Growth and PL Real Estate Funds. PLFA, as investment adviser to the Funds, pays the related management fees to these sub-advisers as compensation for advisory services provided to the Funds.

          Pursuant to an Administration and Shareholder Services Agreement (the “Agreement”), Pacific Life serves as administrator (the “Administrator”) to the Funds. Under the Agreement, the Funds compensated the Administrator at an annual rate of 0.35% of average daily net assets for procuring or providing administrative, transfer agency, and shareholder services. In addition, Pacific Life and PLFA provide support services to the Funds that are outside the scope of the administrator’s and investment adviser’s responsibilities under the respective Agreements. Under the support services agreement, the Funds compensate Pacific Life and PLFA for their expenses in providing support services to the Funds in connection with various matters, including the expense of registering and qualifying the Funds on state and Federal levels, providing legal, compliance, accounting, tax and chief compliance officer services, maintaining the Funds’ legal existence, shareholders’ meetings, and expenses associated with preparing, printing and distributing reports, proxies and prospectuses to existing shareholders. The Funds reimbursed Pacific Life and PLFA for these support services on an approximate cost basis.

          Pursuant to a Distribution Agreement, Pacific Select Distributors, Inc. (the “Distributor”), a wholly owned subsidiary of Pacific Life, serves as distributor of the Funds’ shares. The Distributor bears all expenses of providing services, including costs of sales presentations, mailings, advertisings, and other marketing efforts by the Distributor in connection with the distribution or sale of the Funds’ shares and makes distribution and service payments to selling groups in connection with the sale of the Funds’ shares and subsequent servicing needs of shareholders provided by selling groups. The Distributor received distribution and service fees pursuant to class-specific distribution and service plans, each adopted in accordance with Rule 12b-1 under the Investment Company Act of 1940 (together the “12b-1 Plans”) for Class B, C and R shares. The Distributor also received service fees pursuant to a Class A Service Plan (non 12b-1). Under the 12b-1 Plans, each Fund paid to the Distributor both distribution and service fees at an annual rate expressed as a percentage of average daily net assets. The distribution fee was 0.75% for Class B and C shares and 0.25% for R shares. The service fee was 0.25% for Class A, B, C, and R shares. The Class A shares did not pay a distribution fee. For the Portfolio Optimization Funds, each class of shares invests in Class A shares of the Underlying Funds, without payment of a front-end sales charge. To avoid duplication of fees, the 0.25% service fee for each class of the Portfolio Optimization Funds was waived. The fees were accrued daily.

          For the six-month period ended September 30, 2007, the Distributor, acting as underwriter, received net commissions of $5,249,888 from the sale of Class A shares and received $304,672 in CDSC from redemptions of Class B and C shares.

4. TRUSTEE COMPENSATION

          The Funds pay each independent trustee of the Board retainer fees and specified amounts for various Board and committee services and for chairing the committees.

D-7

PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)

          Each independent trustee is eligible to participate in the Funds’ Deferred Compensation Plan (the “Deferred Compensation Plan”). The Deferred Compensation Plan allows each independent trustee to voluntarily defer receipt of all or a percentage of fees which otherwise would be payable for services performed. Amounts in the deferral account are obligations of the Funds that are payable in accordance with the Deferred Compensation Plan. Deferral amounts are treated as though equivalent dollar amounts had been invested in shares of certain Funds. An independent trustee who defers compensation has the option to select credit rate options that track the performance of the Class A shares of the corresponding series of the Funds without a sales load. Accordingly, the market value appreciation or depreciation of the independent trustee’s deferred compensation accounts will cause the expenses of each Fund to increase or decrease due to the market fluctuation. As of September 30, 2007, the total deferred trustee compensation liability was $171,764 for both current and retired independent trustees.

5. EXPENSE REDUCTIONS

          To help limit the Funds’ expenses PLFA pursuant to an expense limitation agreement, has contractually agreed to reimburse each Fund for its operating expenses (including organizational expenses, but not including investment advisory fees; distribution and service (12b-1) fees; non 12b-1 service fees; foreign taxes on dividends, interest or gains; interest; taxes; brokerage commissions and other transactional expenses; extraordinary expenses such as litigation and other expenses not incurred in the ordinary course of each Fund’s business) that exceed an annual expense rate based on a percentage of a Fund’s average daily net assets. The expense cap is 0.00% for the Portfolio Optimization Funds and 0.30% for the Underlying Funds through June 30, 2008. To the extent that the expense cap for a Fund is lower than the administrative service fee of 0.35%, Pacific Life, as Administrator, has contractually agreed to waive or reduce its fee to the level of the expense cap through June 30, 2008.

          The investment adviser expense reimbursement and administrator fee reduction for the six-month period ended September 30, 2007 for each Fund were as follows:

Funds	Investment Adviser Expense Reimbursements		Administrator Fee Reductions		Total Reimbursements and Reductions
PL Portfolio Optimization Conservative	$	71,105	$	47,559	$	118,664
PL Portfolio Optimization Moderate-Conservative		128,429		136,355		264,784
PL Portfolio Optimization Moderate		422,797		558,169		980,966
PL Portfolio Optimization Moderate-Aggressive		463,699		615,602		1,079,301
PL Portfolio Optimization Aggressive		221,550		279,571		501,121
PL Money Market		39,849		5,289		45,138
PL Small-Cap Growth		69,080		10,195		79,275
PL International Value		134,608		20,201		154,809
PL Large-Cap Value		85,385		13,952		99,337
PL Short Duration Bond		91,517		15,921		107,438
PL Growth LT		100,769		15,225		115,994

PL Mid-Cap Value		105,711		17,079		122,790
PL Large-Cap Growth		72,258		7,154		79,412
PL International Large-Cap		167,377		18,574		185,951
PL Small-Cap Value		19,605		1,242		20,847
PL Main Street Core		150,489		21,016		171,505
PL Emerging Markets		192,972		12,017		204,989
PL Managed Bond		183,399		26,070		209,469
PL Inflation Managed		132,480		20,632		153,112
PL Comstock		123,161		20,849		144,010
PL Mid-Cap Growth		104,610		16,119		120,729
PL Real Estate		69,868		7,561		77,429
Total	$	3,150,718	$	1,886,352	$	5,037,070

          There is no guarantee that PLFA and/or Pacific Life will continue to cap and/or reduce expenses after June 30, 2008. Such reimbursement and reduction is subject to repayment to PLFA and/or Pacific Life, for a period of time as permitted under regulatory and/or accounting standards (currently 3 years from the end of the fiscal year in which the reimbursement or reduction took place), to the extent such expenses fall below the expense cap in future years. Any amounts repaid to PLFA and/or Pacific Life will have the effect of increasing such expenses of the Funds, but not above the expense cap.

           The cumulative reimbursement and reduction amounts, if any, as of September 30, 2007 that are subject to repayment for each Fund are as follows:

	Expiration
Funds	2008		2009		2010		2011
PL Portfolio Optimization Conservative	$	227,677	$	239,802	$	233,903	$	118,664
PL Portfolio Optimization Moderate-Conservative		355,811		442,372		517,561		264,784
PL Portfolio Optimization Moderate		679,146		1,185,218		1,647,668		980,966
PL Portfolio Optimization Moderate-Aggressive		629,641		1,107,412		1,718,549		1,079,301
PL Portfolio Optimization Aggressive		369,133		469,853		739,235		501,121
PL Money Market		213,591		166,678		113,640		45,138
PL Small-Cap Growth		142,612		134,926		149,587		79,275
PL International Value		226,073		267,723		289,007		154,809
PL Large-Cap Value		189,257		219,212		193,610		99,337
PL Short Duration Bond		189,312		150,594		197,905		107,438
PL Growth LT		136,338		140,644		213,449		115,994
PL Mid-Cap Value		58,835		173,484		198,479		122,790
PL Large-Cap Growth		172,805		245,172		170,991		79,412
PL International Large-Cap		340,780		355,135		339,401		185,951
PL Small-Cap Value		—		—		—		20,847
PL Main Street Core		—		82,462		300,236		171,505
PL Emerging Markets		—		448,741		411,421		204,989
PL Managed Bond		229,552		265,770		365,613		209,469
PL Inflation Managed		150,852		197,676		282,559		153,112
PL Comstock		142,219		138,900		263,118		144,010
PL Mid-Cap Growth		179,956		167,673		207,435		120,729
PL Real Estate		38,207		136,561		144,757		77,429
Total	$	4,671,797	$	6,736,008	$	8,698,124	$	5,037,070

D-8

PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)

          Due to the current regulatory and/or accounting standards, all expense reimbursements made by the investment adviser for the period September 28, 2001 (the Pacific Life Funds’ commencement date of operations) to March 31, 2004 ($6,920,424) expired for future recoupment as of March 31, 2007. Based on the Funds’ experience, the likelihood of repayment by the Funds for the amounts presented in the table above prior to the expiration is considered remote and no liabilities for such repayments were recorded by the Funds as of September 30, 2007. The adviser expense reimbursement and administrator fee reduction is presented in the accompanying Statements of Operations.

6. TRANSACTIONS WITH AFFILIATES

          The Funds have incurred $4,717,775 of investment advisory fees, $2,085,119 of administration fees (after $1,886,352 administrator fee reduction), and $494,249 of expenses for support services provided by Pacific Life and PLFA (at approximate cost, see Note 3), for the six-month period ended September 30, 2007. As of September 30, 2007, $821,812, $698,018, and $269,333, respectively remained payable.

          For the six-month period ended September 30, 2007, the Funds also incurred $3,782,956 of distribution and/or service fees (after distribution and/or service fee waivers of $1,373,018), payable to the Distributor under the 12b-1 Plans and non 12b-1 service plan. As of September 30, 2007, $136,697 remained payable.

7. TAX CHARACTER OF DISTRIBUTIONS AND COMPONENTS OF DISTRIBUTABLE EARNINGS

          The tax character of distributions paid during the six-month period ended September 30, 2007, was as follows:

	Distributions Paid From
Funds	Ordinary Income		Long-Term Capital Gains		Total Distributions
PL Portfolio Optimization Conservative	$	152,538	$	152,468	$	305,006
PL Portfolio Optimization Moderate-Conservative		247,058		1,036,468		1,283,526
PL Portfolio Optimization Moderate		474,684		4,775,470		5,250,154
PL Portfolio Optimization Moderate-Aggressive		42,187		7,167,163		7,209,350
PL Portfolio Optimization Aggressive		—		3,488,783		3,488,783
PL Money Market		542,147		—		542,147
PL Small-Cap Growth		—		273,256		273,256
PL International Value		138,633		—		138,633
PL Large-Cap Value		127,662		359,610		487,272
PL Short Duration Bond		1,351,090		—		1,351,090
PL Growth LT		—		272,263		272,263
PL Mid-Cap Value		2,295,357		1,488,062		3,783,419
PL International Large-Cap		—		2,338,572		2,338,572
PL Main Street Core		1,078,410		916,810		1,995,220
PL Emerging Markets		316,734		647,637		964,371
PL Managed Bond		1,268,478		150,000		1,418,478

PL Inflation Managed	2,845,243	—	2,845,243
PL Comstock	333,822	899,204	1,233,026
PL Mid-Cap Growth	992,246	1,755,390	2,747,636
PL Real Estate	569,792	896,950	1,466,742

          The tax character of distributions paid during the year ended March 31, 2007, was as follows:

	Distributions Paid From
Funds	Ordinary Income		Long-Term Capital Gains		Total Distributions
PL Portfolio Optimization Conservative	$	708,423	$	312,511	$	1,020,934
PL Portfolio Optimization Moderate-Conservative		1,576,122		1,466,120		3,042,242
PL Portfolio Optimization Moderate		5,275,436		6,504,890		11,780,326
PL Portfolio Optimization Moderate-Aggressive		5,203,133		6,441,272		11,644,405
PL Portfolio Optimization Aggressive		1,747,872		3,369,147		5,117,019
PL Money Market		850,811		—		850,811
PL Small-Cap Growth		—		26,664		26,664
PL International Value		3,146,042		11,698,973		14,845,015
PL Large-Cap Value		309,131		3,211,095		3,520,226
PL Short Duration Bond		1,769,320		—		1,769,320
PL Growth LT		—		427,412		427,412
PL Mid-Cap Value		563,298		975,616		1,538,914
PL Large-Cap Growth		—		2,089,765		2,089,765
PL International Large-Cap		1,423,650		4,764,700		6,188,350
PL Main Street Core		888,934		213,353		1,102,287
PL Emerging Markets		1,918,359		40,828		1,959,187
PL Managed Bond		3,354,057		—		3,354,057
PL Inflation Managed		1,862,140		—		1,862,140
PL Comstock		1,010,840		1,554,145		2,564,985
PL Mid-Cap Growth		—		4,283,707		4,283,707
PL Real Estate		250,209		1,618,472		1,868,681

          As of March 31, 2007, the components of distributable earnings on a tax basis were as follows:

Funds	Accumulated Capital and Other Losses			Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Net Unrealized Appreciation(1)
PL Portfolio Optimization Conservative	$	—		$	152,518	$	152,467	$	620,007
PL Portfolio Optimization Moderate-Conservative		—			247,054		1,036,461		4,493,321
PL Portfolio Optimization Moderate		—			474,554		4,775,458		26,588,397
PL Portfolio Optimization Moderate-Aggressive		—			41,607		7,167,146		34,531,622
PL Portfolio Optimization Aggressive		—			—		3,488,775		17,182,477
PL Money Market		(94	)		18,550		—		—
PL Small-Cap Growth		—			—		273,253		3,646,704
PL International Value		(34,881	)		138,578		—		11,892,464
PL Large-Cap Value		—			127,659		359,607		9,558,575

D-9

PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)

Funds	Accumulated Capital and Other Losses			Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Net Unrealized Appreciation (Depreciation)(1)
PL Short Duration Bond	($	637,361	)	$	13,354	$	—	$	99,460
PL Growth LT		(13,690	)		—		272,259		9,191,076
PL Mid-Cap Value		—			2,295,355		1,488,060		5,550,523
PL Large-Cap Growth		(2,634,139	)		—		—		3,337,440
PL International Large-Cap		—			—		2,338,569		15,368,223
PL Main Street Core		(179	)		1,078,399		916,808		6,384,513
PL Emerging Markets		(22,364	)		316,731		647,636		9,137,966
PL Managed Bond		(12,842	)		254,973		149,998		396,065
PL Inflation Managed		(1,467,416	)		532,261		—		(595,168	)
PL Comstock		—			333,814		899,198		8,887,651
PL Mid-Cap Growth		(6,739	)		992,245		1,755,389		9,491,250
PL Real Estate		—			455,346		896,949		8,271,828

          (1) Amount includes appreciation and depreciation on investments, derivatives, and assets and liabilities in foreign currencies.

          The components of the accumulated capital and other losses as of March 31, 2007, are summarized in Note 8.

8. FEDERAL INCOME TAX INFORMATION

          Each Fund intends to continue to qualify as a regulated investment company and distribute substantially all its taxable income and capital gains to its shareholders. Each Fund presented in the first table below declared and paid sufficient dividends on net investment income and capital gains distributions during the year ended March 31, 2007 to qualify as a regulated investment company and is not required to pay Federal income tax under Subchapter M of the Internal Revenue Code (‘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 on a tax basis and may differ from such amounts for financial reporting purposes (see Note 2C). In addition, the year in which amounts are distributed may differ from the year in which the net investment income is earned and the net gains are realized by each Fund.

          Net capital loss carryovers and post-October capital losses, if any, as of March 31, 2007, are available to offset future realized capital gains and thereby reduce future capital gains distributions. Post-October foreign currency losses, if any, will offset future net investment income and thereby reduce future ordinary income distributions. The net capital loss carryovers and the post-October capital and foreign currency losses deferred as of March 31, 2007, were as follows:

																			Post- October Capital Loss Deferral			Post-October Foreign Currency Loss Deferral			Accumulated Capital and Other Losses
	Net Capital Loss Carryover			Net Capital Loss Carryover Expiring in
Funds				2010			2011			2013			2014			2015
PL Money Market		($94	)	$	—		$	—		$	—			($13	)		($81	)	$	—		$	—			($94	)
PL International Value		—			—			—			—			—			—			—			(34,881	)		(34,881	)
PL Short Duration Bond		(586,766	)		—			—			(87,029	)		(337,035	)		(162,702	)		(50,595	)		—			(637,361	)
PL Growth LT		—			—			—			—			—			—			—			(13,690	)		(13,690	)
PL Large-Cap Growth*		(2,355,550	)		(221,245	)		(207,304	)		—			—			(1,927,001	)		(278,589	)		—			(2,634,139	)
PL Main Street Core		—			—			—			—			—			—			—			(179	)		(179	)
PL Emerging Markets		—			—			—			—			—			—			—			(22,364	)		(22,364	)
PL Managed Bond		—			—			—			—			—			—			(12,842	)		—			(12,842	)
PL Inflation Managed		(1,352,540	)		—			—			—			(207,330	)		(1,145,210	)		(114,876	)		—			(1,467,416	)
PL Mid-Cap Growth		—			—			—			—			—			—			—			(6,739	)		(6,739	)

* The availability of a certain amount of capital loss carryforward, which was acquired on December 31, 2003 in the merger with the PF Putnam Research Fund, may be limited in a given year.

          The aggregate cost of investments and the composition of unrealized appreciation and depreciation on investments and net unrealized appreciation and/or depreciation on derivatives and assets and liabilities in foreign currencies as of September 30, 2007, were as follows:

Funds	Total Cost of Investments on Tax Basis		Gross Unrealized Appreciation on Investments		Gross Unrealized Depreciation on Investments			Net Unrealized Appreciation on Investments		Net Unrealized Appreciation (Depreciation) on Other (1)		Net Unrealized Appreciation
PL Portfolio Optimization Conservative	$	33,990,835	$	1,080,963	$	—		$	1,080,963	$	—	$	1,080,963
PL Portfolio Optimization Moderate-Conservative		95,468,801		7,252,295		(24,882	)		7,227,413		—		7,227,413
PL Portfolio Optimization Moderate		374,814,470		42,846,900		(326,990	)		42,519,910		—		42,519,910
PL Portfolio Optimization Moderate-Aggressive		399,319,752		55,370,541		(54,459	)		55,316,082		—		55,316,082
PL Portfolio Optimization Aggressive		185,509,347		27,963,379		(55,959	)		27,907,420		—		27,907,420
PL Money Market		29,564,742		—		—			—		—		—
PL Small-Cap Growth		47,391,541		5,346,673		(2,154,786	)		3,191,887		—		3,191,887

D-10

PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)

Funds	Total Cost of Investments on Tax Basis		Gross Unrealized Appreciation on Investments		Gross Unrealized Depreciation on Investments			Net Unrealized Appreciation (Depreciation) on Investments			Net Unrealized Appreciation (Depreciation) on Other (1)			Net Unrealized Appreciation (Depreciation)
PL International Value	$	94,473,138	$	19,688,682		($3,328,187	)	$	16,360,495		$	98,736		$	16,459,231
PL Large-Cap Value		57,483,896		12,844,521		(662,511	)		12,182,010			38			12,182,048
PL Short Duration Bond		80,317,170		499,934		(11,400	)		488,534			118,422			606,956
PL Growth LT		65,548,394		16,520,991		(839,915	)		15,681,076			(25,902	)		15,655,174
PL Mid-Cap Value		82,823,867		6,964,988		(5,084,725	)		1,880,263			—			1,880,263
PL Large-Cap Growth		30,214,924		6,119,802		(185,424	)		5,934,378			—			5,934,378
PL International Large-Cap		75,271,597		19,612,312		(1,465,811	)		18,146,501			11,774			18,158,275
PL Small-Cap Value		15,857,583		417,495		(627,103	)		(209,608	)		—			(209,608	)
PL Main Street Core		95,906,624		13,121,680		(1,247,898	)		11,873,782			—			11,873,782
PL Emerging Markets		35,551,572		17,117,934		(415,787	)		16,702,147			59,889			16,762,036
PL Managed Bond		167,762,051		1,450,335		(879,189	)		571,146			2,610,012			3,181,158
PL Inflation Managed		202,111,568		1,234,150		(1,764,053	)		(529,903	)		720,593			190,690
PL Comstock		105,187,018		10,636,488		(2,068,655	)		8,567,833			—			8,567,833
PL Mid-Cap Growth		66,187,590		19,404,556		(1,144,549	)		18,260,007			3,448			18,263,455
PL Real Estate		33,871,573		5,501,922		(845,638	)		4,656,284			4,168			4,660,452

          (1) Other includes net appreciation or depreciation on derivatives and assets and liabilities in foreign currencies.

          The implementation of FIN 48 on September 28, 2007 (Note 2U) resulted in no material liability for unrecognized tax benefits as of September 30, 2007.

9. PURCHASES AND SALES OF SECURITIES

          The cost of purchases and proceeds from sales of securities (excluding short-term investments and the PL Money Market Fund since it trades exclusively in short-term debt securities) for the six-month period ended September 30, 2007, were as follows:

	U.S. Government Securities				Other Securities
Funds	Purchases		Sales		Purchases		Sales
PL Portfolio Optimization Conservative	$	—	$	—	$	11,112,639	$	7,447,922
PL Portfolio Optimization Moderate-Conservative		—		—		22,099,813		2,176,883
PL Portfolio Optimization Moderate		—		—		72,390,586		88,018
PL Portfolio Optimization Moderate-Aggressive		—		—		79,350,904		3,576,591
PL Portfolio Optimization Aggressive		—		—		51,798,633		2,873,970
PL Small-Cap Growth		—		—		58,953,399		53,409,656
PL International Value		—		—		36,921,757		9,344,118
PL Large-Cap Value		—		—		13,904,326		7,119,432
PL Short Duration Bond		36,082,790		15,465,214		4,607,881		—
PL Growth LT		—		—		25,338,424		11,163,813
PL Mid-Cap Value		—		—		38,619,416		28,829,789
PL Large-Cap Growth		—		—		26,149,408		24,453,165
PL International Large-Cap		—		—		22,715,501		11,227,430
PL Small-Cap Value		—		—		14,583,210		166,217
PL Main Street Core		—		—		63,638,182		49,484,823
PL Emerging Markets		—		—		17,359,550		26,054,440
PL Managed Bond		397,377,099		345,412,563		30,429,086		16,519,206
PL Inflation Managed		220,041,415		119,630,681		4,095,219		518,632
PL Comstock		—		—		33,794,444		10,051,178
PL Mid-Cap Growth		—		—		28,320,212		23,575,763
PL Real Estate		—		—		15,263,556		6,744,929

D-11

PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)

10. SHARES OF BENEFICIAL INTEREST

          Changes in shares of beneficial interest of each Fund were as follows:

	PL Portfolio Optimization Conservative						PL Portfolio Optimization Moderate-Conservative						PL Portfolio Optimization Moderate						PL Portfolio Optimization Moderate-Aggressive
	Period ended 9/30/2007			Year ended 3/31/2007			Period ended 9/30/2007			Year ended 3/31/2007			Period ended 9/30/2007			Year ended 3/31/2007			Period ended 9/30/2007			Year ended 3/31/2007
Class A
Shares sold		613,176			794,064			1,150,280			1,523,364			3,589,330			5,913,200			4,166,142			6,170,703
Dividend and distribution reinvested		11,305			37,608			48,856			119,645			187,822			430,874			232,190			406,077
Shares repurchased		(353,267	)		(671,888	)		(452,839	)		(1,003,945	)		(1,438,967	)		(2,158,319	)		(1,716,038	)		(1,896,294	)
Net increase		271,214			159,784			746,297			639,064			2,338,185			4,185,755			2,682,294			4,680,486
Beginning shares outstanding		1,116,339			956,555			3,241,673			2,602,609			12,413,718			8,227,963			12,457,626			7,777,140
Ending shares outstanding		1,387,553			1,116,339			3,987,970			3,241,673			14,751,903			12,413,718			15,139,920			12,457,626
Class B
Shares sold		55,159			186,290			235,897			344,636			1,025,854			1,292,839			1,068,546			1,943,372
Dividend and distribution reinvested		2,212			7,705			13,632			35,994			51,249			126,451			81,881			145,685
Shares repurchased		(35,079	)		(111,013	)		(139,025	)		(132,756	)		(303,919	)		(529,736	)		(398,621	)		(531,574	)
Net increase		22,292			82,982			110,504			247,874			773,184			889,554			751,806			1,557,483
Beginning shares outstanding		269,743			186,761			1,084,664			836,790			3,642,947			2,753,393			4,494,070			2,936,587
Ending shares outstanding		292,035			269,743			1,195,168			1,084,664			4,416,131			3,642,947			5,245,876			4,494,070
Class C
Shares sold		595,391			863,678			1,436,061			1,234,705			3,755,281			4,940,141			3,371,307			4,934,871
Dividend and distribution reinvested		12,423			43,093			41,524			96,286			158,881			378,885			212,395			357,208
Shares repurchased		(611,145	)		(447,370	)		(400,864	)		(804,169	)		(1,427,222	)		(1,818,137	)		(1,304,484	)		(1,519,145	)
Net increase (decrease)		(3,331	)		459,401			1,076,721			526,822			2,486,940			3,500,889			2,279,218			3,772,934
Beginning shares outstanding		1,561,774			1,102,373			2,730,526			2,203,704			11,222,531			7,721,642			11,329,854			7,556,920
Ending shares outstanding		1,558,443			1,561,774			3,807,247			2,730,526			13,709,471			11,222,531			13,609,072			11,329,854
Class R
Shares sold		53,147			20,822			16,515			118,130			327,924			215,802			94,224			87,238
Dividend and distribution reinvested		263			685			1,678			4,625			4,356			4,664			1,932			2,719
Shares repurchased		(1,307	)		(1,915	)		(10,462	)		(26,847	)		(94,212	)		(28,235	)		(11,087	)		(14,690	)
Net increase		52,103			19,592			7,731			95,908			238,068			192,231			85,069			75,267
Beginning shares outstanding		20,579			987			122,591			26,683			193,350			1,119			76,223			956
Ending shares outstanding		72,682			20,579			130,322			122,591			431,418			193,350			161,292			76,223

	PL Portfolio Optimization Aggressive						PL Money Market Fund (1)						PL Small-Cap Growth Fund						PL International Value Fund
	Period ended 9/30/2007			Year ended 3/31/2007			Period ended 9/30/2007			Year ended 3/31/2007			Period ended 9/30/2007			Year ended 3/31/2007			Period ended 9/30/2007			Year ended 3/31/2007
Class A
Shares sold		2,350,972			3,079,460			32,584,317			54,952,403			408,319			2,231,530			1,956,317			1,186,866
Dividend and distribution reinvested		116,540			192,642			521,491			796,111			22,634			2,389			8,920			1,014,827
Shares repurchased		(810,540	)		(806,602	)		(27,358,877	)		(53,943,622	)		(20,737	)		(710,584	)		(114,192	)		(608,994	)
Net increase		1,656,972			2,465,500			5,746,931			1,804,892			410,216			1,523,335			1,851,045			1,592,699
Beginning shares outstanding		5,598,839			3,133,339			21,099,461			19,294,569			3,681,626			2,158,291			5,361,204			3,768,505
Ending shares outstanding		7,255,811			5,598,839			26,846,392			21,099,461			4,091,842			3,681,626			7,212,249			5,361,204
Class B
Shares sold		630,143			826,200									2,559			6,179			4,373			11,814
Dividend and distribution reinvested		37,101			58,711									225			43			—			8,972
Shares repurchased		(249,952	)		(145,818	)								(6,154	)		(4,519	)		(7,576	)		(2,129	)
Net increase (decrease)		417,292			739,093									(3,370	)		1,703			(3,203	)		18,657
Beginning shares outstanding		1,768,715			1,029,622									40,512			38,809			47,049			28,392
Ending shares outstanding		2,186,007			1,768,715									37,142			40,512			43,846			47,049

(1) The Fund offers Class A shares only.

D-12

PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)

	PL Portfolio Optimization Aggressive						PL Money Market Fund (1)		PL Small-Cap Growth Fund						PL International Value Fund
	Period ended 9/30/2007			Year ended 3/31/2007			Period ended 9/30/2007	Year ended 3/31/2007	Period ended 9/30/2007			Year ended 3/31/2007			Period ended 9/30/2007			Year ended 3/31/2007
Class C
Shares sold		1,991,436			2,228,998					3,051			17,036			6,052			23,215
Dividend and distribution reinvested		86,595			135,286					205			59			—			24,697
Shares repurchased		(690,734	)		(692,113	)				(10,375	)		(26,670	)		(17,352	)		(48,932	)
Net increase (decrease)		1,387,297			1,672,171					(7,119	)		(9,575	)		(11,300	)		(1,020	)
Beginning shares outstanding		4,132,394			2,460,223					39,538			49,113			102,029			103,049
Ending shares outstanding		5,519,691			4,132,394					32,419			39,538			90,729			102,029
Class R
Shares sold		43,397			30,563
Dividend and distribution reinvested		636			611
Shares repurchased		(4,991	)		(3,720	)
Net increase		39,042			27,454
Beginning shares outstanding		28,336			882
Ending shares outstanding		67,378			28,336

	PL Large-Cap Value Fund						PL Short Duration Bond Fund						PL Growth LT Fund						PL Mid-Cap Value Fund
	Period ended 9/30/2007			Year ended 3/31/2007			Period ended 9/30/2007			Year ended 3/31/2007			Period ended 9/30/2007			Year ended 3/31/2007			Period ended 9/30/2007			Year ended 3/31/2007
Class A
Shares sold		673,727			1,534,609			1,026,099			2,825,677			725,464			1,704,306			951,738			3,806,869
Dividend and distribution reinvested		34,561			272,507			137,108			179,695			19,412			32,358			314,859			142,487
Shares repurchased		(96,824	)		(182,520	)		(51,277	)		(802,022	)		(83,107	)		(585,271	)		(93,775	)		(99,105	)
Net increase		611,464			1,624,596			1,111,930			2,203,350			661,769			1,151,393			1,172,822			3,850,251
Beginning shares outstanding		4,343,490			2,718,894			6,810,466			4,607,116			4,728,093			3,576,700			6,126,051			2,275,800
Ending shares outstanding		4,954,954			4,343,490			7,922,396			6,810,466			5,389,862			4,728,093			7,298,873			6,126,051
Class B
Shares sold		2,991			7,741			18			3,284			2,276			4,888			1,046			2,320
Dividend and distribution reinvested		353			4,079			65			72			134			268			386			284
Shares repurchased		(6,362	)		(3,985	)		(99	)		(843	)		(4,052	)		(4,674	)		(3,801	)		(466	)
Net increase (decrease)		(3,018	)		7,835			(16	)		2,513			(1,642	)		482			(2,369	)		2,138
Beginning shares outstanding		53,597			45,762			4,614			2,101			34,835			34,353			8,210			6,072
Ending shares outstanding		50,579			53,597			4,598			4,614			33,193			34,835			5,841			8,210
Class C
Shares sold		1,937			39,192			1,683			62,817			1,782			44,666			1,963			12,112
Dividend and distribution reinvested		698			11,985			311			1,135			192			699			1,112			594
Shares repurchased		(16,469	)		(57,886	)		(27,398	)		(80,020	)		(11,377	)		(59,228	)		(3,163	)		(2,879	)
Net increase (decrease)		(13,834	)		(6,709	)		(25,404	)		(16,068	)		(9,403	)		(13,863	)		(88	)		9,827
Beginning shares outstanding		121,431			128,140			44,341			60,409			60,826			74,689			22,018			12,191
Ending shares outstanding		107,597			121,431			18,937			44,341			51,423			60,826			21,930			22,018

(1) The Fund offers Class A shares only.

D-13

PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)

	PL Large-Cap Growth Fund						PL International Large-Cap Fund						PL Small-Cap Value Fund (1),(2)				PL Main Street Core Fund (2)
	Period ended 9/30/2007			Year ended 3/31/2007			Period ended 9/30/2007			Year ended 3/31/2007			Period ended 9/30/2007			Year ended 3/31/2007	Period ended 9/30/2007			Year ended 3/31/2007
Class A
Shares sold		254,870			1,612,839			698,369			1,294,036			1,621,503				1,207,466			2,834,332
Dividend and distribution reinvested		11			219,375			135,150			381,312			—				166,964			101,211
Shares repurchased		(84,538	)		(465,242	)		(95,069	)		(473,277	)		(27,539	)			(131,852	)		(387,177	)
Net increase		170,343			1,366,972			738,450			1,202,071			1,593,964				1,242,578			2,548,366
Beginning shares outstanding		3,151,617			1,784,645			4,614,726			3,412,655			—				7,600,588			5,052,222
Ending shares outstanding		3,321,960			3,151,617			5,353,176			4,614,726			1,593,964				8,843,166			7,600,588
Class B
Shares sold		1,845			2,342			3,909			13,882
Dividend and distribution reinvested		—			5,754			1,109			3,472
Shares repurchased		(3,524	)		(17,288	)		(4,778	)		(4,979	)
Net increase (decrease)		(1,679	)		(9,192	)		240			12,375
Beginning shares outstanding		46,730			55,922			41,167			28,792
Ending shares outstanding		45,051			46,730			41,407			41,167
Class C
Shares sold		4,919			18,950			3,567			30,649
Dividend and distribution reinvested		—			12,412			1,398			5,639
Shares repurchased		(16,499	)		(97,203	)		(10,575	)		(40,332	)
Net decrease		(11,580	)		(65,841	)		(5,610	)		(4,044	)
Beginning shares outstanding		90,133			155,974			55,114			59,158
Ending shares outstanding		78,553			90,133			49,504			55,114

	PL Emerging Markets Fund (2)						PL Managed Bond Fund						PL Inflation Managed Fund						PL Comstock Fund
	Period ended 9/30/2007			Year ended 3/31/2007			Period ended 9/30/2007			Year ended 3/31/2007			Period ended 9/30/2007			Year ended 3/31/2007			Period ended 9/30/2007			Year ended 3/31/2007
Class A
Shares sold		148,085			1,034,159			3,776,211			3,755,772			1,954,914			3,165,974			1,833,901			1,902,664
Dividend and distribution reinvested		65,695			177,319			137,129			318,615			277,021			171,315			82,822			188,089
Shares repurchased		(814,501	)		(51,951	)		(496,180	)		(940,419	)		(181,234	)		(1,825,311	)		(134,082	)		(986,149	)
Net increase (decrease)		(600,721	)		1,159,527			3,417,160			3,133,968			2,050,701			1,511,978			1,782,641			1,104,604
Beginning shares outstanding		3,949,044			2,789,517			10,029,054			6,895,086			8,125,435			6,613,457			5,936,123			4,831,519
Ending shares outstanding		3,348,323			3,949,044			13,446,214			10,029,054			10,176,136			8,125,435			7,718,764			5,936,123
Class B
Shares sold								1,087			3,853			265			5,726			2,748			10,030
Dividend and distribution reinvested								651			2,825			1,901			2,222			560			1,488
Shares repurchased								(7,491	)		(21,858	)		(9,355	)		(59,747	)		(3,255	)		(3,942	)
Net increase (decrease)								(5,753	)		(15,180	)		(7,189	)		(51,799	)		53			7,576
Beginning shares outstanding								90,162			105,342			89,393			141,192			49,343			41,767
Ending shares outstanding								84,409			90,162			82,204			89,393			49,396			49,343
Class C
Shares sold								25,240			108,164			801			37,258			2,624			50,267
Dividend and distribution reinvested								1,867			7,455			5,290			6,697			840			2,639
Shares repurchased								(51,690	)		(64,166	)		(58,233	)		(189,178	)		(16,448	)		(40,458	)
Net increase (decrease)								(24,583	)		51,453			(52,142	)		(145,223	)		(12,984	)		12,448
Beginning shares outstanding								260,154			208,701			271,997			417,220			86,176			73,728
Ending shares outstanding								235,571			260,154			219,855			271,997			73,192			86,176

(1)	Operations commenced on June 29, 2007.
(2)	This Fund offers Class A shares only.

D-14

PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)

	PL Mid-Cap Growth Fund						PL Real Estate Fund
	Period ended 9/30/2007			Year ended 3/31/2007			Period ended 9/30/2007			Year ended 3/31/2007
Class A
Shares sold		442,017			2,201,255			679,277			520,344
Dividend and distribution reinvested		230,570			381,284			108,816			131,207
Shares repurchased		(44,245	)		(203,376	)		(48,384	)		(525,599	)
Net increase		628,342			2,379,163			739,709			125,952
Beginning shares outstanding		5,806,438			3,427,275			2,108,559			1,982,607
Ending shares outstanding		6,434,780			5,806,438			2,848,268			2,108,559
Class B
Shares sold		5,844			22,009			406			9,276
Dividend and distribution reinvested		3,530			7,308			321			781
Shares repurchased		(5,869	)		(11,093	)		(4,817	)		(5,655	)
Net increase (decrease)		3,505			18,224			(4,090	)		4,402
Beginning shares outstanding		100,973			82,749			11,920			7,518
Ending shares outstanding		104,478			100,973			7,830			11,920
Class C
Shares sold		7,788			30,620			5,610			19,414
Dividend and distribution reinvested		4,508			18,651			836			1,227
Shares repurchased		(34,345	)		(129,853	)		(6,468	)		(7,082	)
Net increase (decrease)		(22,049	)		(80,582	)		(22	)		13,559
Beginning shares outstanding		134,775			215,357			22,456			8,897
Ending shares outstanding		112,726			134,775			22,434			22,456

          As of September 30, 2007, Pacific Life owned 19% of the total shares outstanding of the Class A shares of the PL Small-Cap Value Fund.

          As of September 30, 2007, each of the Portfolio Optimization Funds (aggregate of Classes A, B, C, and R) owned the following percentages of the total shares outstanding of each of the following Underlying Funds, as applicable:

	Portfolio Optimization Funds
Underlying Funds	PL Portfolio Optimization Conservative		PL Portfolio Optimization Moderate- Conservative		PL Portfolio Optimization Moderate		PL Portfolio Optimization Moderate- Aggressive		PL Portfolio Optimization Aggressive
PL Money Market	9.39	%	13.80	%	N/A		N/A		N/A
PL Small-Cap Growth	N/A		3.69	%	23.07	%	42.76	%	26.89	%
PL International Value	1.08	%	5.79	%	26.94	%	37.84	%	24.32	%
PL Large-Cap Value	0.81	%	5.53	%	27.90	%	36.64	%	20.05	%
PL Short Duration Bond	11.57	%	20.23	%	49.85	%	16.65	%	N/A
PL Growth LT	0.75	%	3.80	%	25.62	%	39.35	%	26.19	%
PL Mid-Cap Value	1.08	%	5.15	%	29.97	%	39.59	%	23.49	%
PL Large-Cap Growth	1.57	%	5.24	%	32.75	%	36.50	%	16.36	%
PL International Large-Cap	0.61	%	5.93	%	25.48	%	41.96	%	22.57	%
PL Small-Cap Value	N/A		4.72	%	14.80	%	25.96	%	35.70	%
PL Main Street Core	1.60	%	6.32	%	31.38	%	40.13	%	20.56	%
PL Emerging Markets	N/A		N/A		31.76	%	44.33	%	23.90	%
PL Managed Bond	6.87	%	15.95	%	44.57	%	27.88	%	N/A
PL Inflation Managed	5.63	%	13.66	%	45.11	%	31.20	%	N/A
PL Comstock	1.35	%	7.22	%	31.35	%	37.11	%	19.25	%
PL Mid-Cap Growth	N/A		3.73	%	29.58	%	38.00	%	21.64	%
PL Real Estate	N/A		N/A		27.37	%	43.31	%	26.46	%

11. INDEMNIFICATIONS

          Under the Funds’ organizational documents, its officers and trustees are indemnified against certain liabilities arising out of performance of their duties to the Funds. In addition, the Funds entered into an agreement with each of the trustees which provides that the Funds 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 Funds, to the fullest extent permitted by the Funds’ Declaration of Trust and By-Laws, the general

D-15

PACIFIC LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)

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 Funds enters into contracts with service providers and others that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements and agreements is dependent on future claims that may be made against the Funds and/or the trustees and, therefore, cannot be estimated; however, based on experience, the risk of loss from such claims is considered remote.

D-16

PACIFIC LIFE FUNDS
DISCLOSURE OF FUND EXPENSES
(Unaudited)

          We believe it is important for you to understand the impact of fees and expenses regarding your investment. All mutual funds have operating expenses. As a shareholder of a mutual fund, you incur 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 period April 1, 2007 to September 30, 2007.

ACTUAL EXPENSES

          The first section of the table for each fund entitled “Actual Fund Return”, provides information about actual account values and actual expenses based on each fund’s actual performance and each fund’s actual expenses, after any applicable adviser expense reimbursement, administrator fee reductions, and distributor fee waivers. The “Ending Account Value at 09/30/07” 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 04/01/07-09/30/07” 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 6-month period from April 1, 2007 to September 30, 2007.

          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 04/01/07-09/30/07.”

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

          The second section of the table for each fund, entitled “Hypothetical”, provides information about hypothetical account values and hypothetical expenses based on a 5% per year hypothetical rate of return and actual fund’s expenses, after any applicable adviser expense reimbursement, administrator fee reductions, and distributor fee waivers. It assumes that the fund had an annual 5% rate of return before expenses, but that the expense ratio is unchanged. The hypothetical account values and expenses may not be used to estimate the actual ending account values or expenses you paid for the period.

          You may use the hypothetical example information to compare the ongoing costs of investing in the fund compared to other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other mutual funds.

          Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction 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 04/01/07		Ending Account Value at 09/30/07		Annualized Expense Ratio		Expenses Paid During the Period (1) 04/01/07 - 09/30/07
PL Portfolio Optimization Conservative
Actual Fund Return
Class A	$	1,000.00	$	1,035.60	0.00	%		$	0.00
Class B		1,000.00		1,032.10	0.75	%			3.81
Class C		1,000.00		1,032.20	0.75	%			3.81
Class R		1,000.00		1,034.20	0.25	%			1.27
Hypothetical
Class A	$	1,000.00	$	1,025.00	0.00	%		$	0.00
Class B		1,000.00		1,021.25	0.75	%			3.79
Class C		1,000.00		1,021.25	0.75	%			3.79
Class R		1,000.00		1,023.75	0.25	%			1.26
PL Portfolio Optimization Moderate-Conservative
Actual Fund Return
Class A	$	1,000.00	$	1,049.40	0.00	%		$	0.00
Class B		1,000.00		1,046.10	0.75	%			3.84
Class C		1,000.00		1,045.40	0.75	%			3.84
Class R		1,000.00		1,047.90	0.25	%			1.28
Hypothetical
Class A	$	1,000.00	$	1,025.00	0.00	%		$	0.00
Class B		1,000.00		1,021.25	0.75	%			3.79
Class C		1,000.00		1,021.25	0.75	%			3.79
Class R		1,000.00		1,023.75	0.25	%			1.26
PL Portfolio Optimization Moderate
Actual Fund Return
Class A	$	1,000.00	$	1,063.60	0.00	%		$	0.00
Class B		1,000.00		1,059.80	0.75	%			3.86
Class C		1,000.00		1,060.70	0.75	%			3.86
Class R		1,000.00		1,062.60	0.25	%			1.29
Hypothetical
Class A	$	1,000.00	$	1,025.00	0.00	%		$	0.00
Class B		1,000.00		1,021.25	0.75	%			3.79
Class C		1,000.00		1,021.25	0.75	%			3.79
Class R		1,000.00		1,023.75	0.25	%			1.26
PL Portfolio Optimization Moderate-Aggressive
Actual Fund Return
Class A	$	1,000.00	$	1,073.30	0.00	%		$	0.00
Class B		1,000.00		1,069.50	0.75	%			3.88
Class C		1,000.00		1,069.60	0.75	%			3.88
Class R		1,000.00		1,073.10	0.25	%			1.30
Hypothetical
Class A	$	1,000.00	$	1,025.00	0.00	%		$	0.00
Class B		1,000.00		1,021.25	0.75	%			3.79
Class C		1,000.00		1,021.25	0.75	%			3.79
Class R		1,000.00		1,023.75	0.25	%			1.26

E-1 See explanation of references on page E-3

PACIFIC LIFE FUNDS
DISCLOSURE OF FUND EXPENSES (Continued)
(Unaudited)

	Beginning Account Value at 04/01/07		Ending Account Value at 09/30/07		Annualized Expense Ratio		Expenses Paid During the Period (1) 04/01/07 - 09/30/07
PL Portfolio Optimization Aggressive
Actual Fund Return
Class A	$	1,000.00	$	1,082.20	0.00	%		$	0.00
Class B		1,000.00		1,079.00	0.75	%			3.90
Class C		1,000.00		1,079.00	0.75	%			3.90
Class R		1,000.00		1,081.50	0.25	%			1.30
Hypothetical
Class A	$	1,000.00	$	1,025.00	0.00	%		$	0.00
Class B		1,000.00		1,021.25	0.75	%			3.79
Class C		1,000.00		1,021.25	0.75	%			3.79
Class R		1,000.00		1,023.75	0.25	%			1.26
PL Money Market Fund
Actual Fund Return
Class A	$	1,000.00	$	1,022.10	0.95	%		$	4.80
Hypothetical
Class A	$	1,000.00	$	1,020.25	0.95	%		$	4.80
PL Small-Cap Growth Fund
Actual Fund Return
Class A	$	1,000.00	$	1,107.60	1.55	%		$	8.17
Class B		1,000.00		1,103.50	2.30	%			12.10
Class C		1,000.00		1,103.30	2.30	%			12.09
Hypothetical
Class A	$	1,000.00	$	1,017.25	1.55	%		$	7.82
Class B		1,000.00		1,013.50	2.30	%			11.58
Class C		1,000.00		1,013.50	2.30	%			11.58
PL International Value Fund
Actual Fund Return
Class A	$	1,000.00	$	1,085.80	1.40	%		$	7.30
Class B		1,000.00		1,081.80	2.15	%			11.19
Class C		1,000.00		1,081.80	2.15	%			11.19
Hypothetical
Class A	$	1,000.00	$	1,018.00	1.40	%		$	7.06
Class B		1,000.00		1,014.25	2.15	%			10.83
Class C		1,000.00		1,014.25	2.15	%			10.83
PL Large-Cap Value Fund
Actual Fund Return
Class A	$	1,000.00	$	1,055.20	1.40	%		$	7.19
Class B		1,000.00		1,051.30	2.15	%			11.03
Class C		1,000.00		1,050.60	2.15	%			11.02
Hypothetical
Class A	$	1,000.00	$	1,018.00	1.40	%		$	7.06
Class B		1,000.00		1,014.25	2.15	%			10.83
Class C		1,000.00		1,014.25	2.15	%			10.83
PL Short Duration Bond Fund
Actual Fund Return
Class A	$	1,000.00	$	1,029.40	1.15	%		$	5.83
Class B		1,000.00		1,025.60	1.90	%			9.62
Class C		1,000.00		1,026.00	1.90	%			9.62
Hypothetical
Class A	$	1,000.00	$	1,019.25	1.15	%		$	5.81
Class B		1,000.00		1,015.50	1.90	%			9.57
Class C		1,000.00		1,015.50	1.90	%			9.57

PL Growth LT Fund
Actual Fund Return
Class A	$	1,000.00	$	1,107.20	1.30	%	$	6.85
Class B		1,000.00		1,102.80	2.05	%		10.78
Class C		1,000.00		1,102.40	2.05	%		10.77
Hypothetical
Class A	$	1,000.00	$	1,018.50	1.30	%	$	6.56
Class B		1,000.00		1,014.75	2.05	%		10.33
Class C		1,000.00		1,014.75	2.05	%		10.33
PL Mid-Cap Value Fund
Actual Fund Return
Class A	$	1,000.00	$	1,017.10	1.40	%	$	7.06
Class B		1,000.00		1,013.80	2.15	%		10.82
Class C		1,000.00		1,013.80	2.15	%		10.82
Hypothetical
Class A	$	1,000.00	$	1,018.00	1.40	%	$	7.06
Class B		1,000.00		1,014.25	2.15	%		10.83
Class C		1,000.00		1,014.25	2.15	%		10.83
PL Large-Cap Growth Fund
Actual Fund Return
Class A	$	1,000.00	$	1,124.10	1.50	%	$	7.97
Class B		1,000.00		1,120.20	2.25	%		11.93
Class C		1,000.00		1,120.40	2.25	%		11.93
Hypothetical
Class A	$	1,000.00	$	1,017.50	1.50	%	$	7.57
Class B		1,000.00		1,013.75	2.25	%		11.33
Class C		1,000.00		1,013.75	2.25	%		11.33
PL International Large-Cap Fund
Actual Fund Return
Class A	$	1,000.00	$	1,060.70	1.60	%	$	8.24
Class B		1,000.00		1,056.00	2.35	%		12.08
Class C		1,000.00		1,055.80	2.35	%		12.08
Hypothetical
Class A	$	1,000.00	$	1,017.00	1.60	%	$	8.07
Class B		1,000.00		1,013.25	2.35	%		11.83
Class C		1,000.00		1,013.25	2.35	%		11.83
PL Small-Cap Value Fund (2)
Actual Fund Return
Class A	$	1,000.00	$	960.00	1.50	%	$	3.78
Hypothetical
Class A	$	1,000.00	$	1,017.50	1.50	%	$	7.57
PL Main Street Core Fund
Actual Fund Return
Class A	$	1,000.00	$	1,093.40	1.20	%	$	6.28
Hypothetical
Class A	$	1,000.00	$	1,019.00	1.20	%	$	6.06
PL Emerging Markets Fund
Actual Fund Return
Class A	$	1,000.00	$	1,258.20	1.55	%	$	8.75
Hypothetical
Class A	$	1,000.00	$	1,017.25	1.55	%	$	7.82

E-2 See explanation of references on page E-3

PACIFIC LIFE FUNDS
DISCLOSURE OF FUND EXPENSES (Continued)
(Unaudited)

	Beginning Account Value at 04/01/07		Ending Account Value at 09/30/07		Annualized Expense Ratio		Expenses Paid During the Period (1) 04/01/07 - 09/30/07
PL Managed Bond Fund
Actual Fund Return
Class A	$	1,000.00	$	1,024.70	1.15	%		$	5.82
Class B		1,000.00		1,020.90	1.90	%			9.60
Class C		1,000.00		1,020.80	1.90	%			9.60
Hypothetical
Class A	$	1,000.00	$	1,019.25	1.15	%		$	5.81
Class B		1,000.00		1,015.50	1.90	%			9.57
Class C		1,000.00		1,015.50	1.90	%			9.57
PL Inflation Managed Fund
Actual Fund Return
Class A	$	1,000.00	$	1,030.60	1.15	%		$	5.84
Class B		1,000.00		1,027.00	1.90	%			9.63
Class C		1,000.00		1,026.90	1.90	%			9.63
Hypothetical
Class A	$	1,000.00	$	1,019.25	1.15	%		$	5.81
Class B		1,000.00		1,015.50	1.90	%			9.57
Class C		1,000.00		1,015.50	1.90	%			9.57
PL Comstock Fund
Actual Fund Return
Class A	$	1,000.00	$	1,022.20	1.50	%		$	7.58
Class B		1,000.00		1,018.50	2.25	%			11.35
Class C		1,000.00		1,017.70	2.25	%			11.35
Hypothetical
Class A	$	1,000.00	$	1,017.50	1.50	%		$	7.57
Class B		1,000.00		1,013.75	2.25	%			11.33
Class C		1,000.00		1,013.75	2.25	%			11.33
PL Mid-Cap Growth Fund
Actual Fund Return
Class A	$	1,000.00	$	1,195.80	1.45	%		$	7.96
Class B		1,000.00		1,191.70	2.20	%			12.05
Class C		1,000.00		1,191.10	2.20	%			12.05
Hypothetical
Class A	$	1,000.00	$	1,017.75	1.45	%		$	7.31
Class B		1,000.00		1,014.00	2.20	%			11.08
Class C		1,000.00		1,014.00	2.20	%			11.08
PL Real Estate Fund
Actual Fund Return
Class A	$	1,000.00	$	929.10	1.65	%		$	7.96
Class B		1,000.00		926.70	2.40	%			11.56
Class C		1,000.00		926.20	2.40	%			11.56
Hypothetical
Class A	$	1,000.00	$	1,016.75	1.65	%		$	8.32
Class B		1,000.00		1,013.00	2.40	%			12.08
Class C		1,000.00		1,013.00	2.40	%			12.08

(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 366 days.
(2)	The PL Small-Cap Value Fund commenced operations on June 29, 2007.The actual fund return and expenses paid during the period for this fund were for the period from June 29, 2007 through September 30, 2007 instead of for the entire six-month period. The hypothetical return is based on the entire six-month period for comparison purposes.

E-3

PACIFIC LIFE FUNDS
WHERE TO GO FOR MORE INFORMATION
(Unaudited)

Availability of Quarterly Holdings

          The Funds file Form N-Q (complete schedules of portfolio 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 Funds’ Form N-Q, when required is filed pursuant to applicable regulations, is available after filing (i) on the SEC’s Web site at http://www.sec.gov; (ii) for review and copying at the SEC’s Public Reference Room in Washington, D.C. (Information on the operation of the Public Reference Room may be obtained by calling the SEC at 1-800-SEC-0330); and (iii) on the Funds’ Webpage at http://www.PacificLife.com. The SEC may charge you a fee for this information.

Availability of Proxy Voting Policies

          A description of the Proxy Voting Policies and Procedures that the Funds use to determine how to vote proxies relating to fund securities is described in the Funds’ Statement of Additional Information (“SAI”), which is available (i) upon request, without charge, by calling 1-800-722-2333; (ii) on the Funds’ Webpage at http://www.PacificLife.com; and (iii) on the SEC’s Web site at http://www.sec.gov.

Availability of Proxy Voting Record

          The Funds file, by August 31 of each year, information regarding how the Funds’ managers voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30. Such information is available after filing (i) on the Funds’ Webpage at http://www.PacificLife.com; and (ii) on the SEC’s Web site at http://www.sec.gov.

Information Relating to Investments Held by the Fund

          For complete descriptions of the various securities and other instruments held by the Funds and their risks, please see the Funds’ prospectus and SAI. The prospectus and SAI are available (i) on the Funds’ Webpage at http://www.PacificLife.com; (ii) on the SEC’s Web site at http://www.sec.gov; and (iii) upon request, without charge, by calling 1-800-722-2333.

E-4

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. Schedule of Investments.

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.

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 Chairman of the Board, President and Treasurer have concluded that Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) and internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) provide reasonable assurances that material information relating to Registrant is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing of this report.

(b)

There were no changes in Registrant’s internal control over financial reporting that occurred during the Registrant’s second fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1)	Code of Ethics – Not applicable.
(a)(2)	Exhibit 99.CERT—Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
(a)(3)	Not applicable.
(b)	Exhibit 99.906 CERT—Certifications 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
	President
Date:	December 3, 2007

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/ James T. Morris
	James T. Morris
	Chief Executive Officer
Date:	December 3, 2007
By:	/s/Mary Ann Brown
	Mary Ann Brown
	President
Date:	December 3, 2007
By:	/s/ Brian D. Klemens
	Brian D. Klemens
	Treasurer (Principal Financial and
	Accounting Officer)
Date:	December 3, 2007