Mutual Funds

Returns reflect reinvestment of dividends and distributions.

The 30-Day SEC is a standardized yield and reflects an estimated yield to maturity. It should be regarded as an estimate of the Fund’s rate of investment income, and it may not equal the Fund’s actual income distribution rate, which reflects the Fund’s past dividends paid to shareholders.

^†Class A shares incepted on 12/31/11. Performance shown prior to that date is hypothetical and is that of Class I shares (6/30/11 inception date), restated to reflect the higher 12b-1 fees applicable to Class A shares.
^††The Credit 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 returm. Index inception existed prior to 6/30/11.

For performance data current to the most recent month-end, call Pacific Life Funds at (800) 722-2333, option 2. Performance data quoted represents past performance, which does not guarantee future results. Current performance may be lower or higher than the performance quoted. The investment return and principal value of an investment will fluctuate so, when redeemed, may be worth more or less than the original cost.

PL Floating Rate Income Fund Class A shares have a maximum of 3.0% sales charge. Class C shares have a maximum 1.0% sales charge. Where sales charge is illustrated, it is applied at the beginning of the period.

Pacific Asset Management (PAM) receives credit quality ratings on underlying securities of the Fund from major rating agencies – S&P, Moody’s, and/or Fitch. The credit quality allocation is provided by PAM. When the rating agencies rate a security differently, PAM uses the higher rating. Below investment-grade is represented by a rating of BB and below. PAM converts all ratings to the equivalent S&P major rating category for purposes of the category shown. Ratings and portfolio credit quality may change over time. Unrated securities do not necessarily indicate low quality.

Total annual operating expenses reflect the current gross expenses paid by the Fund. Net operating expenses reflect waivers, reductions, and reimbursements. Total annual operating expenses and net operating expenses are sourced from the amended and restated prospectus dated December 20, 2011. Expense cap waivers are reevaluated annually. PLFA has contractually agreed to limit certain operating expenses incurred by the PL Floating Rate Income Fund that exceed an annual rate of 0.15% through 12/31/14.  There is no guarantee that PLFA will continue to cap expenses after the expiration date.

What You Should Know

The value of the PL Floating Rate Income Fund’s holdings will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. The Fund is subject to interest-rate (bond prices generally fall when interest rates rise) and credit risk (the risk that an issuer may be unable or unwilling to meet its financial obligations). Floating–rate loans involve risk of default in interest of principal payments along with risk of bankruptcy and illiquidity. The Fund invests in high-yield securities, which have greater credit risk than higher-quality bonds, The Fund is a non-diversified fund that invests in securities of fewer issuers, which may subject the Fund to greater market fluctuations and price volatility than the diversified fund. The Fund is subject to liquidity risk (the risk that certain investment may be difficult to purchase and sell in adverse market conditions). International investing is subject to currency fluctuations and political changes, which may make the Fund’s foreign holdings more volatile and less liquid than U.S. investments.

This material must be preceded or accompanied by the Pacific Life Funds prospectus. The prospectus contains more complete information, including the risks, charges, limitations, expenses, and investment objectives of Pacific Life Funds. Read it carefully before investing.

The PL Floating Rate Income Fund is offered by Pacific Life Funds. Pacific Life Funds are distributed by Pacific Select Distributors, Inc. (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company (Newport Beach, CA), and are available through licensed third-party broker/dealers.