Pacific Life Fund Advisors LLC
The asset allocation and specialty funds are managed by Pacific Life Fund Advisors LLC (PLFA). Established in 2007, Pacific Life Fund Advisors provides multi-asset and balanced allocation solutions through its asset allocation, manager research, and investment risk-management functionalities. PLFA is an SEC-registered investment adviser and a wholly owned subsidiary of Pacific Life Insurance Company (Pacific Life). As of December 31, 2019, PLFA managed approximately $31.7 billion in total assets.
Our Investment Approach
Diversification is critical, no matter what stage of life you are in. While an investor nearing retirement may have different financial objectives than one just embarking on a career, both should consider employing diversification. But what is also critical is choosing the correct asset classes in which to diversify, which is known as asset allocation. Asset allocation and diversification do not guarantee future results, ensure a profit, or protect against loss.
PLFA applies an investment approach using three fundamental disciplines: asset allocation, manager research, investment risk management. Using these disciplines, PLFA determines each Portfolio Optimization Fund’s overall asset allocation strategy and the appropriate underlying funds.
Asset Allocation/Portfolio Construction
An asset class model is developed for each fund that reflects a risk/return profile consistent with the fund’s investment goal. The model defines the asset classes, and the percentage of each, to include in the fund.
Underlying fund managers are evaluated using quantitative screening to narrow the list of potential managers. Qualitative due diligence meetings are then conducted with the selected management firms to assess firm stability, performance repeatability, and investment style adherence.
Investment Risk Management
Using the asset class model as a framework, the specific percentage that will be invested into each underlying fund is determined according to the fund’s target-risk objectives. Rigorous analysis and stress testing are performed to identify and evaluate fund risks and, if necessary, adjust allocations accordingly.
Asset Management (as of 12/31/19)
The underlying funds in the Portfolio Optimization Funds are managed by some of the most well-recognized management firms in the industry. All management firms may not be represented in all Portfolio Optimization Funds.