|
Portfolio Optimization Funds offer a choice of five Asset Allocation Funds (PF Portfolio Optimization
Models A — E) that are already diversified among stocks, bonds and
cash equivalents. The key is a questionnaire that assesses your personal investment
style. Your financial needs, investment time horizon and willingness to accept risk are
matched with a diversified fund, which is allocated among the underlying Pacific Life Funds.
Developed by Pacific Life with asset allocation modeling by Ibbotson Associates Inc., a wholly owned subsidiary of Morningstar, Inc.,
the funds are based on the work of the economist and 1990 Nobel laureate Dr.
Harry Markowitz. The process applies investment methodology, including historical
asset performance and attribution analysis, to determine each fund's consistency with
a particular level of risk. Ibbotson provides consulting services to more than 3,000
clients in the financial and investment industries, and was among the first to
develop asset allocation methodologies — the core of Portfolio Optimization Funds.
Annually, Pacific Life Funds will evaluate each fund's asset allocation strategy and rebalance
the funds to reflect target allocations.
At any time, you can choose a different fund if your objective has changed. Keep in mind
that exchanges between funds may be taxable. Talk to your tax adviser. Investing in
Portfolio Optimization Funds does not guarantee future performance, but it does
provide a diversified portfolio designed to balance risk and reward.
If you already know your risk tolerance, simply
choose one of five funds
and decide an amount to invest. If you're unsure, fill out the
Investor Profile Questionnaire.
Your investment professional will score it and help you choose which fund is right for you. If
you're considering saving for a child's college education, ask about the Pacific Life Funds
Savings Plan Kit, which includes 529 plan beneficiary profiles for each fund.
|
