Pacific FundsSM Floating Rate Income

Class AClass CAdvisor Class
TickerFund NumberTickerFund NumberTickerFund Number
PLFLX110PLBCX310PLFDX010

Pacific Funds Floating Rate Income is a mutual fund:

  • Designed for Income: Constructed to seek steady streams of higher income.
  • Built for Portfolio Diversification: Floating-rate loans may complement a traditional fixed-income portfolio.
  • Based on Experience: A portfolio management team that specializes in fixed-income asset management based on a foundation of corporate credit research.

 

Fund Snapshot

Pacific Funds Floating Rate Income invests primarily in floating-rate loans of non-investment-grade companies. These investments can serve as both an income driver and a hedge against rising interest rates.

Floating-rate loans, also known as senior bank loans, are variable-rate loans made by financial institutions to companies that are generally considered to have low credit quality. Borrowers enter into these loans to raise capital. In exchange for investing with these companies, holders typically receive higher levels of income.

 

Performance (as of 9/30/19)

  Total Returns (%) Annualized Total Returns (%) 
  3-Month YTD 1-Year 3-Year 5-Year Since Fund Inception
6/30/11
Class A—NAV1 1.25 6.61 3.03 4.42 3.62 4.36
Class A—MOP1 –1.82 3.40 –0.04 3.36 2.99 3.97
Class C—NAV1 0.97 6.07 2.30 3.70 2.88 3.61
Class C—MOP1 –0.03 5.07 1.32 3.70 2.88 3.61
Advisor Class2 1.15 6.78 3.15 4.67 3.87 4.57
Credit Suisse Leveraged Loan Index3 0.92 6.39 3.11 4.68 4.11 4.51

Calendar Year-End Returns (%)

  2012 2013 2014 2015 2016 2017 2018
Class A—NAV1 10.53 5.88 0.04 0.55 8.60 4.03 0.11
Class A—MOP1 7.25 2.69 –2.92 –2.46  5.34 0.93 –2.88
Class C—NAV1 9.77 5.17 –0.68 –0.30  7.80 3.32 –0.59
Class C—MOP1 8.77 4.17 –1.64 –1.27  6.80 2.32 –1.55
Advisor Class2 10.49 6.22 0.30 0.80   8.84 4.27 0.36
Credit Suisse Leveraged Loan Index3 9.43 6.15 2.06 –0.38 9.88 4.25 1.14

Returns reflect reinvestment of dividends and distributions. 

1Class A and C shares incepted on 12/30/11. Class A shares at maximum offering price (MOP) reflect the deduction of an up-front 3.00% sales load. Class C shares at MOP reflect the deduction of a 1.00% contingent deferred sales charge (CDSC). 2Advisor Class shares incepted on 6/29/12. Performance shown prior to these dates is hypothetical and is that of Class I shares (6/30/11 inception date), restated to reflect applicable service and/or 12b-1 fees. 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. 3Credit Suisse Leveraged Loan Index is an index of U.S. dollar-denominated leveraged loan market securities. The total return is equal to the change in price plus the coupon return.

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

Yield (as of 9/30/19) Advisor Class
30-Day SEC Yield (Advisor Shares) 4 4.76%

Without fee waivers and expense reimbursements, the 30-Day SEC Yield is 4.47%.

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 9/30/19)

Asset Allocation (%)
Floating–Rate Loans 91.18
High–Yield Bonds 5.02
Investment–Grade Corporate Bonds 0.00
Cash 2.37
Other 1.43
Maturity Schedule (%)
Less than 1 year 3.03
1-3 years 7.07
3-5 years 34.30
5-7 years 52.19
7-10 years 1.98
More than 10 years 1.43
Credit Quality Allocation (%)
BBB and Above
4.70
BB
25.20
B
60.79
CCC and Below 7.88
Other 1.43

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. 

Distributions (Advisor Class) Per Share Amount ($)
July 2019 0.0424
August 2019 0.4180
September 2019 0.0396

Shareholders of record of the fund for less than the entire month will be paid a portion of the distribution.

Characteristics
Duration (Years) 0.29
Weighted Average Maturity
4.72
Weighted Average Floating-Rate Loan Price
99.44
Number of Issues
146
Number of Issuers 110
Top-10 Holdings Maturity Weight (%)
Advanced Disposal Services, Inc.  11/10/23 2.57
Garda World Security Corporation  5/24/24 2.34
Nva Holdings, Inc. 2/2/25 2.11
Zayo Group LLC 1/19/24 2.04
Refinitiv Us Holdings, Inc.  10/1/25 1.99
Milacron LLC 9/28/23 1.82
Reynolds Group Holdings, Inc.  2/5/23 1.69
American Builders & Contractors Supply Co., Inc.  10/31/23 1.65
Acelity LP, Inc.  2/2/24 1.53
Wand Newco 3, Inc.  2/5/26 1.52
Total   19.25

 

Top-10 Industries (%)
Service 15.39 Manufacturing 7.23
Media/Telecom 12.24 Aerospace 6.06
Healthcare 11.07 Food/Tobacco 5.46
Information Technology 10.33 Forest Prod/Containers 5.40
Financial 7.98 Housing 4.43

 

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 issue 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

Portfolio Managers (since inception): Pacific Asset Management

J.P. Leasure: Senior Managing Director; 24 years of investment experience

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

Investment Adviser

Pacific Life Fund Advisors LLC

Fund Information (as of 9/30/19)

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.

PLFA3

Pacific Life Fund Advisors LLC (PLFA), a wholly-owned subsidiary of Pacific Life, is the investment adviser to Pacific Funds. PLFA also does business under the name Pacific Asset Management and manages certain funds under that name.

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.