PL Income Fund

PL Income Fund Overview

Our Approach to Income
The PL Income Fund is designed to seek higher levels of income from traditional and nontraditional asset classes along with the ability to adapt to changing market conditions.

The PL Income Fund is a bond fund:

Designed for Income: Constructed to seek steady streams of higher income.
With Greater Flexibility: Ability for the Fund to respond to market and interest rate movements.^†
Based on Experience: A portfolio management team that specializes in institutional fixed-income asset management.

Objective
Seeks a high level of current income; capital appreciation is of secondary importance.

Investment Strategy
This Fund invests principally in income-producing debt instruments. The Fund may also invest in instruments that the manager believes have the potential for capital appreciation (including non-income-producing investments) and/or the manager may consider capital appreciation when selecting income-producing investments. The Fund will invest at least 60% of its assets in investment-grade corporate debt instruments, including those issued by non-U.S. entities denominated in U.S. dollars, and U.S. government and agency securities. The Fund may invest up to 40% of its assets in non-investment-grade (high yield/high risk, sometimes called “junk bonds”) debt instruments, including those issued by non-U.S. entities denominated in U.S. dollars, and floating rate senior loans.

Investor Profile
Designed for investors who seek a high level of current income in a diversified bond portfolio.

Investment Management

Portfolio Manager (since inception):
Pacific Asset Management

Jason R. Rosiak
Senior Managing Director; over 18 years of investment experience

David Weismiller, CFA
Managing Director; over 14 years of investment experience

Investment Advisor
Pacific Life Fund Advisors LLC

†There is no guarantee that the Fund’s investment strategies will work under all market conditions.

Fund Snapshot
The PL Income Fund invests primarily in bonds that generally provide higher income than government securities with similar lengths of time to maturity. The Fund is composed of a carefully selected mix of fixed-income securities.

The Fund will generally invest its assets in:

Investment Grade Corporate Bonds: typically provide higher income than government bonds.
Investment Grade Non-U.S. Bonds†: often capture higher income than investment-grade U.S. bonds of similar credit and maturity.
U.S. Government Securities: help manage economic challenges and portfolio duration.

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

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.

†U.S. dollar denominated.

Fund Performance, Composition, and Information

Fund Composition
Fund Information

March 31, 2012

Performance		1-Month	3-Month	YTD	Since Inception
PL Income Fund	A Shares -- NAV	(0.52)	2.30%	2.30%	8.29%
	A Shares – Load Adjusted	(4.71)	(2.02)	(2.02)	4.61
	C Shares – NAV	(0.58)	2.14	2.14	7.47
Barclays Capital U.S Aggregate Bond Index†		(0.55)	0.30	0.30	6.49

Yield (as of March 31, 2012)	Class A
30-Day SEC Yield	2.69%

†Barclays Capital U.S. Aggregate Bond Index: Composed of approximately 7,000 asset-based, corporate, government, and mortgage-backed bonds. The index's total return consists of price appreciation/depreciation and income as a percentage of the original investment. The 30-Day Standardized Yield 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. High Yield Corporate Bonds and Senior Floating Rate Loans are typically non-investment grade. 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 Income Fund Class A shares have a maximum 4.25% sales charge. Where a sales charge is illustrated, it is applied at the beginning of the period.

Fund Composition

Asset Allocation
Government	5.10%
Agencies	0.00
Investment Grade U.S. Corporates	47.71
Floating Rate Loans	19.10
High Yield	16.01
Convertibles	0.00
Investment Grade Foreign (USD)	15.77
Cash and Other	2.31

March 31, 2012

Maturity Schedule
Less than 1 year	2.31%
1-3 years	8.71
3-5 years	31.50
5-7 years	27.35
7-10 years	23.30
10-20 years	4.15
More than 20 years	2.68

Top-10 Country Allocations
United States	76.86%	Canada	2.05%
Switzerland	2.60	Netherlands	1.74
United Kingdom	2.42	Australia	1.60
South Korea	2.23	Luxembourg	1.42
Brazil	2.20	France	1.10

Credit Quality Allocation of Bonds
AAA	7.40%	BBB	40.10%
AA	3.16	BB	26.26
A	15.90	B	7.18
		N/R	0.00

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.

Distributions Prior 3 Months (A Shares)
January 2012	Income	0.0235
February 2012	Income	0.0227
March 2012	Income	0.0243

Bond Allocation
Duration	4.53 years
Weighted Average Maturity	6.66 years

Duration is a measure of a portfolio's price sensitivity expressed in years.

Top-10 Holdings	Maturity	Weight
Directv Holdings Llc 2.4%	03/15/17	1.87%
Government Of The United States Of America 3.75%	08/15/41	1.69%
Sabmiller Holdings Ltd. 2.45%	01/15/17	1.58%
Nbcuniversal Media Llc 2.875%	04/01/16	1.37%
Transocean Sedco Forex, Inc. 5.05%	12/15/16	1.35%
Rock-tenn Co. 4.45%	03/01/19	1.18%
Pernod Ricard Sa 4.25%	07/15/22	1.10%
Berkshire Hathaway, Inc. 3.4%	01/31/22	1.10%
Petrobras Intl. Finance Co. 5.375%	01/27/21	1.01%
Aon Corp. 3.125%	05/27/16	0.97%
Total		13.22%

Fund Information

As of 1/1/11	A Shares	C Shares
Inception Date	12/31/10	6/30/11
Minimum Initial/Subsequent Investment	$1,000/$50	$1,000/$50
Sales Load/Maximum Sales Charge	Front-end/4.25%	CDSC/1.0%
Net/Gross Expense Ratio	0.91%/1.38%	1.66%/2.13%
Distributions	Monthly Dividends/Annual Capital Gains

PLFA has contractually agreed to limit certain operating expenses incurred by the PL Income Fund that exceed an annual rate of 0.15% through 12/31/13. There is no guarantee that PLFA will continue to cap expenses after the expiration date.

PL Income Fund Performance Fact Sheet Fact sheet highlights features of the PL Income Fund, quarterly fund performance and composition.
(W30603-12B)
PL Income Fund Commentary Quarterly PL Income Fund Commentary highlighting the fund’s performance, market and performance review, outlook, and average annual returns including the index.
(W32015-12B)

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 fund's fixed income securities are subject to interest rate risk. Bond prices generally fall when interest rates rise. Floating rate loans involve risk of default on interest and principal payments or price changes due to changes in credit quality of the issuer. High-yield bonds have greater credit risk than higher quality bonds. International investing is subject to currency fluctuations and political changes. The value can be more volatile due to increased sensitivity to adverse issuer, political, regulatory, market, or economic developments.

PLFA is the investment advisor to the Pacific Life Funds and the PL Income Fund. PLFA also does business under the name Pacific Asset Management and manages two of the Pacific Life Funds under that name.

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 prospectus dated July 1, 2011. Class A shares have a maximum 4.25% sales charge. Class C shares, if redeemed within one year from purchase, a 1.00% CDSC will apply. Please see the prospectus for more information.

The PL 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, and are available through licensed third-party broker/dealers.

Mutual Funds