Pacific FundsSM Strategic Income

Class AClass CAdvisor Class
TickerFund NumberTickerFund NumberTickerFund Number
PLSTX114PLCNX314PLSFX014

Fund Literature

Pacific Funds Strategic Income is a mutual fund:

  • Designed for Income: Constructed to seek steady streams of higher income.
  • With a Broad Perspective: Seeks opportunities across a wide range of securities.
  • Based on Experience: A portfolio management team that specializes in fixed-income asset management based on a foundation of corporate credit research.

 

Fund Snapshot

The Fund will generally invest its assets in:

  • High-Yield Corporate Bonds: Typically offer higher income than investment-grade bonds, although with greater risk.
  • Senior Floating-Rate Loans: Can serve as both an income driver and a hedge against rising interest rates.

The Fund may diversify sources of income by investing in other types of instruments, such as:

  • Investment-Grade Corporate Bonds: Typically provide higher income than government bonds
  • Investment-Grade Non-U.S. Bonds:1 Often capture higher income than investment-gradeU.S. bonds of similar credit quality and maturity.

 

Performance (as of 6/30/20)

  Total Returns (%) Annualized Total Returns (%) 
  3-Month YTD 1-Year 3-Year 5-Year Since Fund Inception
12/19/11
Class A—NAV2 11.41 -0.59 3.11 4.11 4.17 5.77
Class A—MOP2 6.69 -4.83 -1.28 2.60 3.28 5.24
Class C—NAV2 11.36 -0.93 2.40 3.40 3.44 5.02
Class C—MOP2 10.36 -1.90 1.41 3.40 3.44 5.02
Advisor Class2 11.58 -0.37 3.46 4.40 4.45 6.02
Bloomberg Barclays U.S. Aggregate Bond Index3 2.90 6.14 8.74 5.32 4.30 3.44

Calendar Year-End Returns (%)

  2012 2013 2014 2015 2016 2017 2018 2019
Class A—NAV2 17.03 7.27 1.66 –3.14 11.02 6.59 –3.01 13.33
Class A—MOP2 12.02 2.71 –2.67 –7.23 6.30 2.05 –7.11 8.51
Class C—NAV2 16.17 6.44 0.94 –3.77 10.11 5.87 –3.69 12.59
Class C—MOP2 15.17 5.44 –0.03 –4.70 9.11 4.87 –4.62 11.59
Advisor Class2 17.05 7.53 1.93 –2.80 11.19 6.85 –2.77 13.61
Bloomberg Barclays U.S. Aggregate Bond Index3 4.21 –2.02 5.97 0.55 2.65 3.54 0.01 8.72

Returns reflect reinvestment of dividends and distributions. 

1U.S. dollar-denominated. 2Share class incepted 6/29/12. Performance shown prior to that date is hypothetical and is that of Class I shares (12/19/11 inception date), restated to reflect applicable service and/or 12b-1 fees. Class A shares at maximum offering price (MOP) reflect the deduction of an up-front 4.25% sales load. Class C shares at MOP reflect the deduction of a 1.00% contingent deferred sales charge (CDSC). Advisor Class shares are sold at net asset value (NAV) without an initial sales charge and do not include a CDSC. Performance reflects any applicable fee waivers and expense reimbursements. If a sales charge had been deducted, the results would have been lower. 3Composed of investment-grade U.S. government and corporate bonds, mortgage pass-through securities, and asset-backed securities.

Indexes are unmanaged and cannot be invested in directly. Further, They hold no cash and incur no expenses.

Yield (as of 6/30/20) Advisor Class
30-Day SEC Yield (Advisor Shares)4 4.05%

Without fee waivers and expense reimbursements, the 30-Day SEC Yield is 3.90%.

4The 30-Day SEC Yield represents the net investment income earned over the 30-day period ending on the above date and includes any fee waivers and expense reimbursements. It is an annualized rate calculated under a methodology prescribed by the Securities and Exchange Commission (SEC). Yields for other share classes will vary.

Fund Composition (as of 6/30/20)

Asset Allocation (%)
High–Yield Bonds 24.63
Floating–Rate Loans 21.21
Investment–Grade Corporate Bonds 45.88
Asset–Backed Securities 3.58
Government Bonds 0.00
Cash 2.36
Equities/Other 2.35

 

Characteristics
Duration 5.15
Weighted Average Maturity 9.43
Weighted Average Price 101.23
Number of Issues 293
Number of Issuers 186

The weighted average price includes bonds and floating-rate loans.

Credit Quality Allocation (%)
AAA 2.46
AA 2.17
A 10.73
BBB 36.69
BB 13.62
B 26.07
CCC and Below 5.92
Equities 2.35

Ratings received from S&P®, Moody’s, and/or Fitch and measured on a scale that generally ranges from AAA (highest) to D (lowest) and may change over time. The higher rating is used when rating agencies rate a security differently. All ratings are converted to the equivalent S&P major rating category for purposes of the category shown. 

Maturity Schedule (%)
Less than 1 year 2.85
1–3 years
5.42
3–5 years
20.00
5–7 years
21.85
7–10 years
25.60
10–20 years
11.06
More than 20 years
9.89
Equities/Other 3.33
Distributions (Advisor Class) Per Share Amount ($)
April 2020 0.0412
May 2020 0.0362
June 2020 0.0354

 

Top-10 Holdings Maturity Weight (%)
Wells Fargo & Company 5.013% 4/4/50 0.94
Boeing Company 5.93% 5/1/60 0.83
WRKCo Inc. 3.9%
6/1/28 0.81
Athene Holding Ltd. 6.15% 4/3/30 0.81
Caesars Resort Collection LLC
12/23/24 0.80
TMS International Holding Corporation 7.25%
8/15/25 0.77
Masco Corporation 7.75% 8/1/29 0.76
Nationwide Mutual Insurance Company 4.35% 4/30/50 0.75
DXC Technology Co. 4.125% 4/15/25 0.75
AssuredPartners, Inc. 2/12/27 0.74
Total   7.95
Top-10 Country Allocations (%)
United States 87.50
Canada 2.70
United Kingdom 1.28
Ireland
1.22
Belgium
1.00
Luxembourg
0.98
Singapore 0.59
South Korea 0.55
Bermuda
0.52
Macau
0.44

Based on country of risk which may differ from country of incorporation.

About Principal Risks

All investing involves risks including the possible loss of the principal amount invested. There is no guarantee the Fund will achieve its investment goal. Corporate bonds are subject to issuer risk in that their value may decline for reasons directly related to the issuer of the security. Not all U.S. government securities are checked or guaranteed by the U.S. government, and different government securities are subject to varying degrees of credit risk. Mortgage-related and other asset-backed securities are subject to certain rules affecting the housing market or the market for the assets underlying such securities. The Fund is subject to liquidity risk (the risk that an investment may be difficult to purchase, value, and sell particularly during adverse market conditions, because there is a limited market for the investment, or there are restrictions on resale) and credit risk (the risk an issuer may be unable or unwilling to meet its financial obligations, risking default). High-yield/high-risk bonds (“junk bonds”) and floating-rate loans (usually rated below investment grade) have greater risk of default than higher-rated securities/higher-quality bonds that may have a lower yield. The Fund is also subject to foreign-markets risk.

 

Investment Management

Subadvised by Pacific Asset Management LLC

Portfolio Managers:

Brian M. Robertson, CFA: Managing Director and Lead Portfolio Manager; 17 years of investment experience

Michael Marzouk, CFA: Managing Director; 23 years of investment experience

David Weismiller, CFA: Managing Director; 23 years of investment experience

Investment Adviser

Pacific Life Fund Advisors LLC

Fund Information (as of 6/30/20)

DOL - Pacific Funds

Pacific Life Insurance Company is the administrator for Pacific Funds. It is not a fiduciary and therefore does not give advice or make recommendations regarding insurance or investment products.

Investors should consider a fund's investment goal, risks, charges, and expenses carefully before investing. The prospectus and/or the applicable summary prospectus contain this and other information about the fund and are available from your financial advisor. The  prospectus and/or summary prospectus should be read carefully before investing.

Duration measures a fund’s sensitivity to interest-rate risk where the longer a fund’s duration, the more sensitive, and vice versa. Maturity of a debt instrument, refers to the specific period of time until final payment (principal and any applicable interest) is due.

Pacific Funds and Pacific Asset Management (PAM) are registered service marks of Pacific Life Insurance Company (“Pacific Life”). S&P is a registered trademark of Standard & Poor’s Financial Services LLC. All third party trademarks referenced by Pacific Life, such as S&P, belong to their respective owners. References of third party trademarks do not indicate or signify any relationship, sponsorship or endorsement between Pacific Life and the owners of referenced trademarks.

All share classes may not be available at all firms, and not all investors may be eligible for all share classes.

PSD2

Pacific Funds are distributed by Pacific Select Distributors, LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company (Newport Beach, CA), and are available through licensed third parties. Pacific Funds refers to Pacific Funds Series Trust.

AM6

No bank guarantee • May lose value • Not FDIC insured