0001193125-13-010519.txt : 20130111 0001193125-13-010519.hdr.sgml : 20130111 20130111132013 ACCESSION NUMBER: 0001193125-13-010519 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 8 FILED AS OF DATE: 20130111 DATE AS OF CHANGE: 20130111 EFFECTIVENESS DATE: 20130111 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PACIFIC LIFE FUNDS CENTRAL INDEX KEY: 0001137761 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1933 Act SEC FILE NUMBER: 333-61366 FILM NUMBER: 13524961 BUSINESS ADDRESS: STREET 1: 700 NEWPORT CENTER DRIVE STREET 2: POST OFFFICE BOX 7500 CITY: NEWPORT BEACH STATE: CA ZIP: 92660 BUSINESS PHONE: 9492193233 MAIL ADDRESS: STREET 1: 700 NEWPORT CENTER DRIVE CITY: NEWPORT BEACH STATE: CA ZIP: 92660 FORMER COMPANY: FORMER CONFORMED NAME: PACIFIC FUNDS DATE OF NAME CHANGE: 20010405 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PACIFIC LIFE FUNDS CENTRAL INDEX KEY: 0001137761 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1940 Act SEC FILE NUMBER: 811-10385 FILM NUMBER: 13524962 BUSINESS ADDRESS: STREET 1: 700 NEWPORT CENTER DRIVE STREET 2: POST OFFFICE BOX 7500 CITY: NEWPORT BEACH STATE: CA ZIP: 92660 BUSINESS PHONE: 9492193233 MAIL ADDRESS: STREET 1: 700 NEWPORT CENTER DRIVE CITY: NEWPORT BEACH STATE: CA ZIP: 92660 FORMER COMPANY: FORMER CONFORMED NAME: PACIFIC FUNDS DATE OF NAME CHANGE: 20010405 0001137761 S000001887 PL PORTFOLIO OPTIMIZATION CONSERVATIVE C000124051 ADVISOR CLASS 0001137761 S000001898 PL PORTFOLIO OPTIMIZATION MODERATE-CONSERVATIVE C000124052 ADVISOR CLASS 0001137761 S000001901 PL PORTFOLIO OPTIMIZATION MODERATE C000124053 ADVISOR CLASS 0001137761 S000001902 PL PORTFOLIO OPTIMIZATION MODERATE-AGGRESSIVE C000124054 ADVISOR CLASS 0001137761 S000001903 PL PORTFOLIO OPTIMIZATION AGGRESSIVE C000124055 ADVISOR CLASS 0001137761 S000030505 PL INCOME FUND C000114643 ADVISOR CLASS PLIDX 0001137761 S000033079 PL FLOATING RATE INCOME FUND C000114644 ADVISOR CLASS PLFDX C000124056 CLASS P 0001137761 S000034880 PL HIGH INCOME FUND C000114645 ADVISOR CLASS PLHYX 0001137761 S000034881 PL SHORT DURATION INCOME FUND C000114646 ADVISOR CLASS PLDSX 0001137761 S000034882 PL STRATEGIC INCOME FUND C000114647 ADVISOR CLASS PLSFX 0001137761 S000039140 PL ALTERNATIVE STRATEGIES FUND C000120413 ADVISOR CLASS PSADX 485BPOS 1 d398012d485bpos.htm PACIFIC LIFE FUNDS Pacific Life Funds

As filed with the Securities and Exchange Commission on January 11, 2013

Registration No. 333-61366

811-10385

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

Pre-Effective Amendment No.                                  ¨

Post-Effective Amendment No. 93 x

and/or

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 ¨

Amendment No. 97 x

(Check appropriate box or boxes)

Pacific Life Funds

(Exact Name of Registrant as Specified in Charter)

700 Newport Center Drive, P.O. Box 7500, Newport Beach, CA 92660

(Address of Principal Executive Offices) (Zip Code)

Registrant’s Telephone Number, including Area Code: (949) 219-3202

Audrey L. Cheng, Esq.

Pacific Life Insurance Company

700 Newport Center Drive

Newport Beach, CA 92660

(Name and Address of Agent for Service)

Copies to:

Anthony H. Zacharski, Esq.

Dechert LLP

90 State House Square

Hartford, CT 06103-3702

It is proposed that this filing will become effective (check appropriate box)

 

  x immediately upon filing pursuant to paragraph (b)

 

  ¨ on (date) pursuant to paragraph (b)

 

  ¨ 60 days after filing pursuant to paragraph (a)(1)

 

  ¨ on (date) pursuant to paragraph (a)(1)

 

  ¨ 75 days after filing pursuant to paragraph (a)(2)

 

  ¨ on (date) pursuant to paragraph (a)(2) of rule 485.

If appropriate, check the following box:

 

  ¨ this post-effective amendment designates a new effective date for a previously filed post-effective amendment.

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 (“Securities Act”) and the Investment Company Act of 1940, the Registrant certifies that it meets all of the requirements for effectiveness of this Registration Statement under Rule 485(b) under the Securities Act and has duly caused this Post-Effective Amendment No. 93 to its Registration Statement to be signed on its behalf by the undersigned, duly authorized, in the City of Newport Beach, and State of California, on this 11th day of January, 2013.

 

PACIFIC LIFE FUNDS
    By:   /s/ J.G. Lallande                            
    J.G. Lallande
    Assistant Vice President and Counsel
    Pacific Life Insurance Company

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, this Post-Effective Amendment No. 93 to the Registration Statement of Pacific Life Funds has been signed below by the following persons in the capacities and on the dates indicated.

 

  SIGNATURE

   

  TITLE

   

  DATE

   Chairman of the Board and Trustee    January 11, 2013
  James T. Morris*      
   Chief Executive Officer    January 11, 2013
  Mary Ann Brown*      
   Vice President and Treasurer    January 11, 2013
  Brian D. Klemens*    (Principal Financial and Accounting Officer)   
   Trustee    January 11, 2013
  Frederick L. Blackmon*      
   Trustee    January 11, 2013
  Lucie H. Moore*      
   Trustee    January 11, 2013
  Gale K. Caruso*      
   Trustee    January 11, 2013
  Nooruddin S. Veerjee*      
   Trustee    January 11, 2013
  G. Thomas Willis*      
*By: /s/ J.G. Lallande       January 11, 2013
          J.G. Lallande      
          as attorney-in-fact pursuant to power of attorney filed herewith   

EXHIBIT INDEX

Pacific Life Funds

 

Exhibit Number              

   Exhibit Description

EX-101.INS

   XBRL Instance Document

EX-101.SCH

   XBRL Taxonomy Extension Schema Document

EX-101.CAL

   XBRL Taxonomy Extension Calculation Linkbase

EX-101.DEF

   XBRL Taxonomy Extension Definition Linkbase

EX-101.LAB

   XBRL Taxonomy Extension Labels Linkbase

EX-101.PRE

   XBRL Taxonomy Extension Presentation Linkbase
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plf5:BarclaysUsAggregateBondIndexMember 2011-12-19 2012-12-18 0001137761 plf5:S000001903Member plf5:BofaMerrillLynchIndexMember 2011-12-19 2012-12-18 0001137761 plf5:S000001903Member plf5:PlPortfolioOptimizationAggressiveCompositeBenchmarkMember 2011-12-19 2012-12-18 pure iso4217:USD 0.055 0 0 0 0 0.002 0.002 0.002 0.002 0.002 0.0025 0.01 0.01 0.005 0 0.0065 0.0065 0.0065 0.0065 0.0065 670 703 303 153 107 925 1027 627 474 334 1227 1306 1106 848 598 2082 2238 2429 1898 1352 0.0366 0.0253 0.025 0.0373 0.0373 0.0456 0.0544 0.0363 0.0387 0.0208 0.0501 485BPOS PACIFIC LIFE FUNDS 0001137761 2012-12-18 2012-12-19 <b>PL High Income Fund</b> <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleShareholderFeesPLINCOMEFUND column period compact * ~</div> <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleAnnualFundOperatingExpensesPLINCOMEFUND column period compact * ~</div> <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleAverageAnnualTotalReturnsTransposedPLINCOMEFUND column period compact * ~</div> 2012-12-18 <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleShareholderFeesPLPORTFOLIOOPTIMIZATIONAGGRESSIVE column period compact * ~</div> <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleAnnualFundOperatingExpensesPLPORTFOLIOOPTIMIZATIONAGGRESSIVE column period compact * ~</div> <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleAverageAnnualTotalReturnsTransposedPLPORTFOLIOOPTIMIZATIONAGGRESSIVE column period compact * ~</div> <strong>Fees and expenses</strong> <b>PL Strategic Income Fund</b> 0.03 0 <strong>Shareholder Fees </strong>(fees paid directly from your investment) 0 0 0.055 0 0 0 <strong>Annual fund operating expenses </strong>(expenses that you pay each year as a percentage of the value of your investment) 0 0 0.01 0 0 <strong>Examples</strong> <b>Investment goal</b> This fund seeks a high level of current income. The examples below are intended to help you compare the cost of investing in the fund with the cost of investing in other funds of Pacific Life Funds or other mutual funds. Each example assumes that you invest $10,000 in the noted share class of the fund for the time periods indicated, that your investment has a 5% return each year, and that the fund's annual operating expenses remain as stated in the previous table throughout the periods shown, except for the expense caps, which are only reflected for the contractual period. Although your actual costs may be higher or lower, the Examples show what your costs would be based on these assumptions. 0.004 0.004 0.004 0.004 Your expenses (in dollars) if you <strong>SELL </strong>your shares at the end of each period. Your expenses (in dollars) if you <strong>DON'T SELL </strong>your shares at the end of each period. 0.0025 0.01 0 0 <strong>Portfolio turnover</strong> The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in Annual fund operating expenses or in the Examples, affect the fund's performance. During the most recent fiscal year, the fund's turnover rate was 6.77% of the average value of the fund. 0.0058 0.03 0 <strong>Principal investment strategies</strong> 0.0058 0 0.0043 0 0.0058 0.0001 0 0.0001 0.01 0.0001 0 0.0001 0 0.0124 0.0199 0.0084 0.0099 <strong>Principal risks</strong> -0.0038 <strong>Fund performance</strong> -0.0038 -0.0023 -0.0038 0.0086 0.0161 0.0061 0.0061 The bar chart and table below provide some indication of the risks of investing in the fund by showing changes in the performance of the fund from year-to-year and by showing how the fund's returns compare to four broad-based benchmark indexes, which provide broad measures of market performance and correspond to four asset classes (domestic equity, fixed income, international equity and cash equivalents) that may be allocated to by the fund. The bar chart shows the performance of the fund's Class A shares. The fund's returns are also compared to its composite benchmark, which is comprised of up to the four broad-based indexes shown based on the target allocation(s) for the fund that were in effect through the periods shown. The fund's Advisor Class shares do not yet have a full calendar year of performance and are not included in the table below.<br/><br/>Past performance (before and after taxes) is not necessarily an indication of how the fund will perform in the future. Performance reflects expense limitations that were in effect during the periods presented. Sales loads are not reflected in the chart below. If these amounts were reflected, returns would be lower. Updated performance information may be obtained at our website: www.mutualfunds.pacificlife.com/mfc/home/performance.html, or by calling customer service at (800) 722-2333 (select Option 2). <strong>Year by year total return (%)</strong><br/>as of December 31 each year The after-tax returns (a) are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes; (b) are shown for Class A shares only and will vary for other classes; and (c) are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. In some instances, the return after taxes on distributions and sale of shares may be greater than the return before taxes because the investor is assumed to be able to use the capital loss of the sale of fund shares to offset other taxable capital gains. 0.0065 0.0065 0.0065 0.0065 0.0025 0.01 0 0 0.0043 0.0043 0.0028 0.0043 0.0001 0.0001 0.0001 0.0001 0.0134 0.0209 0.0094 0.0109 0.0081 0.0081 0.0181 0.0106 <b>Fees and expenses</b> The table that follows describes the fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Pacific Life Funds. More information about these and other discounts is available from your financial professional and in the Overview of the Share Classes section in this prospectus. <b>Shareholder Fees </b>(fees paid directly from your investment) 680 713 313 163 117 954 false 1058 658 505 365 <b>Annual fund operating expenses </b>(expenses that you pay each year as a percentage of the value of your investment) 1275 1355 1155 898 649 2180 2335 2525 1998 1458 The investment adviser has contractually agreed to limit certain "fund operating expenses" incurred by the fund that exceed an annual rate of 0.20% through 6/30/2015. The agreement will terminate: (i) if the investment advisory agreement is terminated, or (ii) upon ninety days' prior written notice by the Pacific Life Funds. The investment adviser may recoup amounts reimbursed in future periods, not to exceed 3 years from the end of the fiscal year in which the reimbursement took place, provided that the recoupment would not cause the fund to exceed the expense cap. <b>Portfolio turnover</b> -0.0028 -0.0028 -0.0013 -0.0028 The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in Annual fund operating expenses or in the Examples, affect the fund's performance. During the most recent fiscal year, the fund's turnover was 92.87% of the average value of the fund. 0.9287 You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Pacific Life Funds. 100000 "Other Expenses" for Class A, Class C and Advisor Class are based on estimated amounts for the current fiscal year. 385 264 62 62 566 508 <b>Examples</b> 195 195 848 961 394 430 1651 2219 970 1103 The examples below are intended to help you compare the cost of investing in the fund with the cost of investing in other funds of Pacific Life Funds or other mutual funds. Each example assumes that you invest $10,000 in the noted share class of the fund for the time periods indicated, that your investment has a 5% return each year, and that the fund's annual operating expenses remain as stated in the previous table throughout the periods shown. Although your actual costs may be higher or lower, the Examples show what your costs would be based on these assumptions. 680 213 213 163 117 0.0065 Your expenses (in dollars) if you <b>SELL</b> your shares at the end of each period. 954 658 658 365 505 0.0028 0.0001 1275 1155 1155 0.0094 898 649 Your expenses (in dollars) if you <b>DON'T SELL</b> your shares at the end of each period. -0.0013 0.0081 2180 2335 2525 1998 1458 <b>Principal investment strategies</b> Under normal circumstances, the fund invests at least 80% of its assets in non-investment grade (high yield/high risk, sometimes called "junk bonds") debt instruments or in instruments with characteristics of non-investment grade debt instruments. The fund invests principally in instruments that have intermediate to long terms to maturity, which generally means that the fund will hold instruments with final maturities greater than one year. Debt instruments in which the fund invests include bonds, notes and floating rate loans, including those of foreign issuers which are denominated in U.S. dollars.<br/><br/>Individual investment selection is generally based on the manager's fundamental research process. Sector allocations are determined based on the manager's assessment of risk/return opportunities relative to the fund's investment goal and benchmark weightings (Barclays U.S. High-Yield 2% Issuer Capped Index). The manager performs a credit analysis on each potential issuer and a relative value analysis on each potential investment.<br/><br/>Decisions to sell are generally based upon the manager's belief that the particular investment has achieved its valuation target, there have been changes in the fundamentals of the issuer, or another opportunity of greater relative value exists. <b>Principal risks</b> <b>Fund performance</b> <b>Investment goal</b> This fund seeks moderately high, long-term capital appreciation with low, current income. <b>Fees and expenses</b> The table that follows describes the fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Pacific Life Funds. More information about these and other discounts is available from your financial professional and in the Overview of the Share Classes section in this prospectus. <b>Shareholder Fees </b>(fees paid directly from your investment) <b>Annual fund operating expenses </b>(expenses that you pay each year as a percentage of the value of your investment) <b>Portfolio turnover</b> 405 284 83 83 632 575 264 264 The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in Annual fund operating expenses or in the Examples, affect the fund's performance. During the most recent fiscal year, the fund's turnover rate was 7.52% of the average value of the fund. <b>Examples</b> The examples below are intended to help you compare the cost of investing in the fund with the cost of investing in other funds of Pacific Life Funds or other mutual funds. Each example assumes that you invest $10,000 in the noted share class of the fund for the time periods indicated, that your investment has a 5% return each year, and that the fund's annual operating expenses remain as stated in the previous table throughout the periods shown, except for the expense caps, which are only reflected for the contractual period. Although your actual costs may be higher or lower, the Examples show what your costs would be based on these assumptions. Your expenses (in dollars) if you <b>SELL </b>your shares at the end of each period. 935 1047 485 520 385 Your expenses (in dollars) if you <b>DON'T SELL </b>your shares at the end of each period. 164 62 62 0.002 0.002 0.002 <b>Principal investment strategies</b> The fund does not have a full calendar year of performance. Thus, a performance bar chart and tables are not included for the fund. 0.002 0.002 566 508 195 195 848 961 394 430 0.0025 0.01 0.01 0.005 0 The fund does not have a full calendar year of performance. 1794 1651 2219 2354 970 1122 1103 0.002 1254 0.002 0.002 0.002 0.002 0.0425 0 0 0 0.0025 0.01 0.01 0.005 0 0.0075 0.0075 0.0075 0.0075 0.0075 0.0027 0.0027 0.0027 0.0027 0.0027 0 0.01 0 0 0.0079 0.0147 0.0079 0.0079 0.0079 0.0222 0.0079 0.0222 0.0172 0.0122 0.0151 0.0226 0.0226 0.0176 0.0126 As with any mutual fund, the value of the fund's investments, and therefore the value of your shares, may go up or down. Accordingly, you could lose money. -0.0012 -0.0012 -0.0012 -0.0012 -0.0007 0.0139 0.0214 0.0164 0.0119 0.0214 0.0425 0 0 0 0 0.01 0 0 0.005 0.005 0.005 0.005 0.0025 405 0.01 184 0 83 83 0 632 575 264 264 0.0051 0.0051 0.0036 0.0051 935 1047 485 520 0.0001 0.0001 0.0001 0.0001 1794 2354 1122 1254 <strong>PL Short Duration Income Fund</strong> 0.0127 <strong>Investment goal</strong> 0.0202 0.0087 0.0102 -0.0036 -0.0036 -0.0021 -0.0036 <b>Investment goal</b> This fund seeks a high level of current income. <b>Fees and expenses</b> 0.006 0.006 0.006 0.006 0.0091 The table that follows describes the fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Pacific Life Funds. More information about these and other discounts is available from your financial professional and in the Overview of the Share Classes section in this prospectus. 0.0166 0.0066 <b>Shareholder Fees </b>(fees paid directly from your investment) 0.0066 <b>Annual fund operating expenses </b> (expenses that you pay each year as a percentage of the value of your investment) 0.0025 0.01 0 <b>Examples</b> 0 The examples below are intended to help you compare the cost of investing in the fund with the cost of investing in other funds of Pacific Life Funds or other mutual funds. Each example assumes that you invest $10,000 in the noted share class of the fund for the time periods indicated, that your investment has a 5% return each year, and that the fund's annual operating expenses remain as stated in the previous table throughout the periods shown. Although your actual costs may be higher or lower, the Examples show what your costs would be based on these assumptions. 0.0067 0.0067 0.0052 0.0067 Your expenses (in dollars) if you <b>SELL</b> your shares at the end of each period. Your expenses (in dollars) if you <b>DON'T SELL</b> your shares at the end of each period. 0.0152 0.0227 0.0112 <b>Portfolio turnover</b> 0.0127 The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in Annual fund operating expenses or in the Examples, affect the fund's performance. During the most recent fiscal year, the fund's turnover was 155.66% of the average value of the fund. <b>Principal investment strategies</b> The fund invests principally in income producing debt instruments. When selecting investments (including non-income producing investments), the manager may invest in instruments that it believes have the potential for capital appreciation. Under normal circumstances, the fund will invest up to 70% 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 loans. The fund may invest up to 65% of its assets in investment grade corporate debt instruments, including those issued by non-U.S. entities denominated in U.S. dollars, U.S. government and agency securities.<br/><br/>The fund's average portfolio duration is expected to be within a range of one to seven years. Duration is often used to measure a bond's or fund's sensitivity to interest rates. The longer a fund's duration, the more sensitive it is to interest rate risk. The shorter a fund's duration, the less sensitive it is to interest rate risk.<br/><br/>The fund may also invest up to 10% of its assets, but not to exceed 20% in the aggregate, in each of the following investments: non-U.S. dollar denominated debt instruments, convertible securities or equity securities.<br/><br/>Individual investments may be purchased or sold in the event the manager decides to adjust fixed income asset class weightings within the portfolio.<br/><br/>Individual investment selection is generally based on the manager's fundamental research process. Sector allocations are determined based on the manager's assessment of risk/return opportunities relative to the fund's investment goal and benchmark weightings (Barclays U.S. Aggregate Bond Index). The manager performs a credit analysis on each potential issuer and a relative value analysis on each potential investment.<br/><br/>Decisions to sell are generally based upon the manager's belief that the particular investment has achieved its valuation target, there have been changes in the fundamentals of the issuer, or another opportunity of greater relative value exists. 0.0105 0.018 <b>Principal risks</b> 0.008 0.008 As with any mutual fund, the value of the fund's investments, and therefore the value of your shares, may go up or down. Accordingly, you could lose money. The fund may be affected by the following principal risks, among other non-principal risks:<ul type="square"><li style="margin-left:-20px"><b>Active Management Risk: </b>There is no guarantee that the manager's principal investment strategies and techniques, as well as particular investment decisions, will achieve the fund's investment goal, which could have an adverse impact on the fund's performance generally, relative to other funds with similar investment goals or relative to its benchmark.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Convertible Securities Risk: </b>Convertible securities have credit risk and interest rate risk and may present less risk than investments in a company's common stock but more risk than investments in the company's senior debt securities.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Credit Risk: </b>An issuer or guarantor of a debt instrument might be unable or unwilling to meet its financial obligations.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Currency Risk: </b>Securities denominated in foreign currencies may be affected by changes in rates of exchange between those currencies and the U.S. dollar. Currency exchange rates may be volatile and may be affected by, among other factors, the general economic conditions of a country, the actions of the U.S. and foreign governments or central banks, the imposition of currency controls, and speculation. A decline in the value of a foreign currency versus the U.S. dollar reduces the value in U.S. dollars of investments denominated in that foreign currency.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Debt Securities Risk:</b> Debt securities are affected by many factors, including prevailing interest rates, market conditions and market liquidity. Volatility of below investment grade debt securities (including loans), may be relatively greater than for investment grade securities.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Equity Securities Risk: </b>Stock markets are volatile. The price of equity securities tends to go up or down in value, sometimes rapidly and unpredictably, in response to many factors, which may be due to the particular issuer, its industry or broader economic or market events.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Floating Rate Loan Risk: </b>Floating rate loans (or bank loans) are usually rated below investment grade. The market for floating rate loans may be subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods. Investments in floating rate loans are typically in the form of an assignment or participation. Investors in a loan participation assume the credit risk associated with the borrower and may assume the credit risk associated with an interposed financial intermediary. Accordingly, if a lead lender becomes insolvent or a loan is foreclosed, the fund could experience delays in receiving payments or suffer a loss. In an assignment, the fund effectively becomes a lender under the loan agreement with the same rights and obligations as the assigning bank or other financial intermediary. Accordingly, if the loan is foreclosed, the fund could become part owner of any collateral, and would bear the costs and liabilities associated with owning and disposing of the collateral. Due to their lower place in the borrower's capital structure and possible unsecured status, junior loans involve a higher degree of overall risk than senior loans of the same borrower. In addition, the floating rate feature of loans means that floating rate loans will not generally experience capital appreciation in a declining interest rate environment. Declines in interest rates may also increase prepayments of debt obligations and require the fund to invest assets at lower yields.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Foreign Markets Risk: </b>Exposure to foreign markets through issuers can involve additional risks relating to market, economic, political, regulatory, geopolitical, or other conditions. These factors can make foreign investments more volatile and less liquid than U.S. investments. In addition, foreign markets can react differently to these conditions than the U.S. market.</li></ul><ul type="square"><li style="margin-left:-20px"><b>High-Yield or "Junk" Securities Risk: </b>High yield securities are typically issued by companies that are highly leveraged, less creditworthy or financially distressed and are considered to be mostly speculative in nature (high risk), potentially less liquid, and subject to a greater risk of loss, that is they are more likely to default than higher rated securities.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Interest Rate Risk: </b>Values of debt securities fluctuate as interest rates change. Debt securities with longer durations or fixed interest rates tend to be more sensitive to changes in interest rates, making them generally more volatile than debt securities with shorter durations or floating or adjustable interest rates.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Issuer Risk:</b> The value of a security or instrument may decline for reasons directly related to the issuer, such as management, performance, financial leverage and reduced demand for the issuer's goods or services.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Liquidity Risk: </b>Liquidity is the ability to sell securities or other investments within a reasonable amount of time at approximately the price at which the fund has valued the securities or other investments, which relies on the willingness of market participants to buy and sell securities. Certain investments may be difficult to purchase and sell, particularly during adverse market conditions, because there is a limited market for the investment or there are restrictions on resale. If the fund holds illiquid securities, it may be unable to take advantage of market opportunities or it may be forced to sell other, more desirable, liquid securities or sell illiquid securities at a loss if it is required to raise cash to conduct its operations.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Market and Regulatory Risk: </b>Events in the financial markets and in the economy may cause volatility and uncertainty and may affect performance. Events in one market may adversely impact other markets. Future events may impact the fund in unforeseen ways. Traditionally liquid investments may experience periods of diminished liquidity. Governmental and regulatory actions may impair fund management and have unexpected consequences on particular markets, strategies, or investments.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Price Volatility Risk: </b>The market value of the fund's investments will go up or down, sometimes rapidly or unpredictably, or may fail to rise, as a result of market conditions or for reasons specific to a particular issuer. The volatility of non-investment grade debt securities (including loans) may be greater than for investment grade securities.</li></ul><ul type="square"><li style="margin-left:-20px"><b>U.S. Government Securities Risk: </b>Not all U.S. government securities are backed or guaranteed by the U.S. government and different U.S. government securities are subject to varying degrees of credit risk. There is risk that the U.S. government will not provide financial support to U.S. government agencies, instrumentalities or sponsored enterprises if it is not obligated to do so by law.</li></ul> <b>Fund performance</b> The fund does not have a full calendar year of performance. Thus, a performance bar chart and tables are not included for the fund. This fund seeks current income; capital appreciation is of secondary importance. <strong>Fees and expenses</strong> The investment adviser has contractually agreed to limit certain "fund operating expenses" incurred by the fund that exceed an annual rate of 0.20% through 6/30/2015. The agreement will terminate: (i) if the investment advisory agreement is terminated, or (ii) upon ninety days' prior written notice by the Pacific Life Funds. The investment adviser may recoup amounts reimbursed in future periods, not to exceed 3 years from the end of the fiscal year in which the reimbursement took place, provided that the recoupment would not cause the fund to exceed the expense cap. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Pacific Life Funds. 100000 "Other Expenses" for Class A, Class C and Advisor Class are based on estimated amounts for the current fiscal year. Expense information has been restated to reflect current fees. <strong>Shareholder Fees </strong>(fees paid directly from your investment) 1.5566 As with any mutual fund, the value of the fund's investments, and therefore the value of your shares, may go up or down. Accordingly, you could lose money. The fund may be affected by the following principal risks, among other non-principal risks:<ul type="square"><li style="margin-left:-20px"> <b>Active Management Risk: </b>There is no guarantee that the manager's principal investment strategies and techniques, as well as particular investment decisions, will achieve the fund's investment goal, which could have an adverse impact on the fund's performance generally, relative to other funds with similar investment goals or relative to its benchmark. </li></ul><ul type="square"><li style="margin-left:-20px"> <b>Credit Risk: </b>An issuer or guarantor of a debt instrument might be unable or unwilling to meet its financial obligations. </li></ul><ul type="square"><li style="margin-left:-20px"> <b>Debt Securities Risk:</b> Debt securities are affected by many factors, including prevailing interest rates, market conditions and market liquidity. Volatility of below investment grade debt securities (including loans), may be relatively greater than for investment grade securities. </li></ul><ul type="square"><li style="margin-left:-20px"> <b>Floating Rate Loan Risk: </b>Floating rate loans (or bank loans) are usually rated below investment grade. The market for floating rate loans may be subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods. Investments in floating rate loans are typically in the form of an assignment or participation. Investors in a loan participation assume the credit risk associated with the borrower and may assume the credit risk associated with an interposed financial intermediary. Accordingly, if a lead lender becomes insolvent or a loan is foreclosed, the fund could experience delays in receiving payments or suffer a loss. In an assignment, the fund effectively becomes a lender under the loan agreement with the same rights and obligations as the assigning bank or other financial intermediary. Accordingly, if the loan is foreclosed, the fund could become part owner of any collateral, and would bear the costs and liabilities associated with owning and disposing of the collateral. Due to their lower place in the borrower's capital structure and possible unsecured status, junior loans involve a higher degree of overall risk than senior loans of the same borrower. In addition, the floating rate feature of loans means that floating rate loans will not generally experience capital appreciation in a declining interest rate environment. Declines in interest rates may also increase prepayments of debt obligations and require the fund to invest assets at lower yields. </li></ul><ul type="square"><li style="margin-left:-20px"> <b>Foreign Markets Risk: </b>Exposure to foreign markets through issuers can involve additional risks relating to market, economic, political, regulatory, geopolitical, or other conditions. These factors can make foreign investments more volatile and less liquid than U.S. investments. In addition, foreign markets can react differently to these conditions than the U.S. market. </li></ul><ul type="square"><li style="margin-left:-20px"><b>High-Yield or "Junk" Securities Risk: </b>High yield securities are typically issued by companies that are highly leveraged, less creditworthy or financially distressed and are considered to be mostly speculative in nature (high risk), potentially less liquid, and subject to a greater risk of loss, that is they are more likely to default than higher rated securities. </li></ul><ul type="square"><li style="margin-left:-20px"> <b>Interest Rate Risk: </b>Values of debt securities fluctuate as interest rates change. Debt securities with longer durations or fixed interest rates tend to be more sensitive to changes in interest rates, making them generally more volatile than debt securities with shorter durations or floating or adjustable interest rates. </li></ul><ul type="square"><li style="margin-left:-20px"> <b>Issuer Risk:</b> The value of a security or instrument may decline for reasons directly related to the issuer, such as management, performance, financial leverage and reduced demand for the issuer's goods or services. </li></ul><ul type="square"><li style="margin-left:-20px"> <b>Liquidity Risk: </b>Liquidity is the ability to sell securities or other investments within a reasonable amount of time at approximately the price at which the fund has valued the securities or other investments, which relies on the willingness of market participants to buy and sell securities. Certain investments may be difficult to purchase and sell, particularly during adverse market conditions, because there is a limited market for the investment or there are restrictions on resale. If the fund holds illiquid securities, it may be unable to take advantage of market opportunities or it may be forced to sell other, more desirable, liquid securities or sell illiquid securities at a loss if it is required to raise cash to conduct its operations. </li></ul><ul type="square"><li style="margin-left:-20px"><b>Market and Regulatory Risk: </b>Events in the financial markets and in the economy may cause volatility and uncertainty and may affect performance. Events in one market may adversely impact other markets. Future events may impact the fund in unforeseen ways. Traditionally liquid investments may experience periods of diminished liquidity. Governmental and regulatory actions may impair fund management and have unexpected consequences on particular markets, strategies, or investments.</li></ul><ul type="square"><li style="margin-left:-20px"> <b>Price Volatility Risk: </b>The market value of the fund's investments will go up or down, sometimes rapidly or unpredictably, or may fail to rise, as a result of market conditions or for reasons specific to a particular issuer. The volatility of non-investment grade debt securities (including loans) may be greater than for investment grade securities. </li></ul> As with any mutual fund, the value of the fund's investments, and therefore the value of your shares, may go up or down. Accordingly, you could lose money. The fund does not have a full calendar year of performance. 684 717 317 167 121 <strong>Annual fund operating expenses </strong> (expenses that you pay each year as a percentage of the value of your investment) 966 1070 670 517 378 <strong>Examples</strong> 1294 1375 1175 919 670 0 0.01 0 0 2222 0.0425 2376 0 0 2565 0 2042 -0.0047 1503 -0.0047 -0.0032 -0.0047 The examples below are intended to help you compare the cost of investing in the fund with the cost of investing in other funds of Pacific Life Funds or other mutual funds. Each example assumes that you invest $10,000 in the noted share class of the fund for the time periods indicated, that your investment has a 5% return each year, and that the fund's annual operating expenses remain as stated in the previous table throughout the periods shown. Although your actual costs may be higher or lower, the Examples show what your costs would be based on these assumptions. Your expenses (in dollars) if you <strong>SELL</strong> your shares at the end of each period. Your expenses (in dollars) if you <strong>DON'T SELL</strong> your shares at the end of each period. <strong>Portfolio turnover</strong> The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in Annual fund operating expenses or in the Examples, affect the fund's performance. During the most recent fiscal year, the fund's turnover was 73.40% of the average value of the fund. 0.055 0 <strong>Principal investment strategies</strong> 0 0 0 0 0.05 0.01 0 0 684 217 217 167 121 966 670 670 517 378 1294 1175 1175 919 670 2222 2376 2565 2042 1503 0.006 0.006 0.006 0.006 The fund invests principally in income producing debt instruments. When selecting investments (including non-income producing investments), the manager may invest in instruments that it believes have the potential for capital appreciation. Under normal circumstances, the fund will invest at least 70% 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 30% 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. <br/><br/> The fund expects to maintain a duration position within one year (plus or minus) of the Barclays 1-3 Year U.S. Government/Credit Bond Index, although the investments held by the fund may have short, intermediate and long terms to maturity. Duration is often used to measure a bond's or fund's sensitivity to interest rates. The longer a fund's duration, the more sensitive it is to interest rate risk. The shorter a fund's duration, the less sensitive it is to interest rate risk. Individual investments may be purchased or sold in the event the manager decides to adjust fixed income asset class weightings within the portfolio.<br/><br/> Individual investment selection is generally based on the manager's fundamental research process. Sector allocations are determined based on the manager's assessment of risk/return opportunities relative to the fund's investment goal and benchmark weightings (Barclays 1-3 Year U.S. Government/Credit Bond Index). The manager performs a credit analysis on each potential issuer and a relative value analysis on each potential investment.<br/><br/> Decisions to sell are generally based upon the manager's belief that the particular investment has achieved its valuation target, there have been changes in the fundamentals of the issuer, or another opportunity of greater relative value exists. 0.0025 0.01 0 0 528 <strong>Principal risks</strong> 283 82 82 <strong>Fund performance</strong> 0.0055 0.0055 The fund does not have a full calendar year of performance. Thus, a performance bar chart and tables are not included for the fund. 0.004 0.0055 745 566 255 255 0.0005 0.0005 0.0005 0.0005 1083 1079 0.0145 519 554 0.022 0.0105 0.012 2038 2488 1272 1402 0 -0.0035 0.05 0.01 0 -0.0035 0 The investment adviser has contractually agreed to limit certain "fund operating expenses" incurred by the fund that exceed an annual rate of 0.20% through 6/30/2015. The agreement will terminate: (i) if the investment advisory agreement is terminated, or (ii) upon ninety days' prior written notice by the Pacific Life Funds. The investment adviser may recoup amounts reimbursed in future periods, not to exceed 3 years from the end of the fiscal year in which the reimbursement took place, provided that the recoupment would not cause the fund to exceed the expense cap. -0.002 -0.0035 0.011 0.0185 0.0085 0.0085 0.0797 0.0612 0.1119 You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Pacific Life Funds. 100000 0.0028 0.0028 0.0028 0.0028 0.0028 0.0729 -0.2673 0.2707 0.0138 0.0213 0.0213 0.0163 0.0113 0.1206 "Other Expenses" for Class A, Class C and Advisor Class are based on estimated amounts for the current fiscal year. 528 183 82 -0.002 82 745 566 255 255 1083 1079 519 554 -0.0013 -0.0013 -0.0013 -0.0013 -0.0008 2038 2488 1272 1402 0.0125 0.02 0.02 0.015 0.0105 -0.057 -0.0605 -0.0354 -0.0588 -0.0191 -0.0043 0.0211 0.0784 -0.1214 Expense information has been restated to reflect current fees. <b>Pl Floating Rate Income Fund</b> <b>Investment goal</b> This fund seeks a high level of current income. <b>PL Floating Rate Income Fund</b> <b>Fees and expenses</b> The table that follows describes the fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Pacific Life Funds. More information about these and other discounts is available from your financial professional and in the Overview of the Share Classes section in this prospectus. <b>Investment goal</b> <b>Shareholder Fees</b> (fees paid directly from your investment) This fund seeks a high level of current income. <b>Fees and expenses</b> This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. <b>Annual fund operating expenses</b> (expenses that you pay each year as a percentage of the value of your investment) <b>Annual fund operating expenses </b>(expenses that you pay each year as a percentage of the value of your investment) <b>Portfolio turnover</b> The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in Annual fund operating expenses or in the Examples, affect the fund's performance. During the most recent fiscal year, the fund's turnover was 139.00% of the average value of the fund. <b>Examples</b> <b>Example</b> The examples below are intended to help you compare the cost of investing in the fund with the cost of investing in other funds of Pacific Life Funds or other mutual funds. Each example assumes that you invest $10,000 in the noted share class of the fund for the time periods indicated, that your investment has a 5% return each year, and that the fund's annual operating expenses remain as stated in the previous table throughout the periods shown. Although your actual costs may be higher or lower, the Examples show what your costs would be based on these assumptions. This Example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 for the time periods indicated, that your investment has a 5% return each year, and that the fund's annual operating expenses remain as stated in the previous table throughout the periods shown, except for the expense cap, which is only reflected for the contractual period. Although your actual costs may be higher or lower, the Example shows what your costs would be based on these assumptions. Your expenses (in dollars) if you <b>SELL</b> your shares at the end of each period. Your expenses (in dollars) if you <b>DON'T SELL</b> your shares at the end of each period. <b>Principal investment strategies</b> The fund invests principally in income producing floating rate loans and floating rate debt securities. Under normal circumstances, this fund generally invests at least 80% of its assets in floating rate loans and floating rate debt securities. Floating rate loans and floating rate debt securities are those with interest rates which float, adjust or vary periodically based upon a benchmark indicator, a specified adjustment schedule or prevailing interest rates. Floating rate loans and floating rate debt securities in which the fund invests consist of senior secured and unsecured floating rate loans, secured and unsecured second lien floating rate loans, and floating rate debt securities of domestic and foreign issuers. Senior floating rate loans and some floating rate debt securities are debt instruments that may have a right to payment that is senior to most other debts of the borrowers. Second lien loans are generally second in line in terms of repayment priority with respect to the pledged collateral. Borrowers may include corporations, partnerships and other entities that operate in a variety of industries and geographic regions. Generally, secured floating rate loans are secured by specific assets of the borrower.<br/><br/>Floating rate loans will generally be purchased from banks or other financial institutions through assignments or participations. A direct interest in a floating rate loan may be acquired directly from the agent of the lender or another lender by assignment or an indirect interest may be acquired as a participation in another lender's portion of a floating rate loan.<br/><br/>The fund may invest up to 20% of its assets in certain other types of debt instruments or securities.<br/><br/>The fund is expected to invest substantially all of its assets in floating rate loans and other debt instruments that are rated non-investment grade (high yield/high risk, sometimes called "junk bonds") or if unrated, are of comparable quality as determined by the manager. Non-investment grade debt instruments may include those that are stressed, distressed or in default.<br/><br/>The fund may invest up to 25% of its assets in U.S. dollar denominated foreign investments, principally in developed markets.<br/><br/>Individual investment selection is based on the manager's fundamental research process and an assessment of the investment's relative value. The manager performs a credit analysis on each potential investment. An investment is generally sold when the issue has realized its price appreciation target, the issue no longer offers relative value, or an adverse change in corporate or sector fundamentals has occurred.<br/><br/>The fund is a "non-diversified" fund. <b>Your expenses (in dollars) if you sell/redeem or hold all of your shares at the end of each period</b> <b>Principal risks</b> <b>Fund performance</b> <b>Your expenses (in dollars) if you sell/redeem or hold all of your shares at the end of each period</b> The fund does not have a full calendar year of performance to compare against a broad measure of market performance. Thus, a performance bar chart and tables are not included for the fund. <b>Portfolio turnover</b> The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in Annual fund operating expenses or in the Examples, affect the fund's performance. During the most recent fiscal year, the fund's turnover was 139.00% of the average value of the fund. <b>Principal investment strategies</b> The fund invests principally in income producing floating rate loans and floating rate debt securities. Under normal circumstances, this fund generally invests at least 80% of its assets in floating rate loans and floating rate debt securities. Floating rate loans and floating rate debt securities are those with interest rates which float, adjust or vary periodically based upon a benchmark indicator, a specified adjustment schedule or prevailing interest rates. Floating rate loans and floating rate debt securities in which the fund invests consist of senior secured and unsecured floating rate loans, secured and unsecured second lien floating rate loans, and floating rate debt securities of domestic and foreign issuers. Senior floating rate loans and some floating rate debt securities are debt instruments that may have a right to payment that is senior to most other debts of the borrowers. Second lien loans are generally second in line in terms of repayment priority with respect to the pledged collateral. Borrowers may include corporations, partnerships and other entities that operate in a variety of industries and geographic regions. Generally, secured floating rate loans are secured by specific assets of the borrower.<br/><br/>Floating rate loans will generally be purchased from banks or other financial institutions through assignments or participations. A direct interest in a floating rate loan may be acquired directly from the agent of the lender or another lender by assignment or an indirect interest may be acquired as a participation in another lender's portion of a floating rate loan.<br/><br/>The fund may invest up to 20% of its assets in certain other types of debt instruments or securities.<br/><br/>The fund is expected to invest substantially all of its assets in floating rate loans and other debt instruments that are rated non-investment grade (high yield/high risk, sometimes called "junk bonds") or if unrated, are of comparable quality as determined by the manager. Non-investment grade debt instruments may include those that are stressed, distressed or in default.<br/><br/>The fund may invest up to 25% of its assets in U.S. dollar denominated foreign investments, principally in developed markets.<br/><br/>Individual investment selection is based on the manager's fundamental research process and an assessment of the investment's relative value. The manager performs a credit analysis on each potential investment. An investment is generally sold when the issue has realized its price appreciation target, the issue no longer offers relative value, or an adverse change in corporate or sector fundamentals has occurred.<br/><br/>The fund is a "non-diversified" fund. 0.001 0.0201 0.0203 0.0149 -0.0472 0.065 -0.0025 0.02 0.0148 0.0112 0.0056 0.0029 0.0378 0.0303 0.0292 0.0385 0.0384 0.0369 0.0363 0.0544 0.0387 0.0208 0.0467 As with any mutual fund, the value of the fund's investments, and therefore the value of your shares, may go up or down. Accordingly, you could lose money. The fund does not have a full calendar year of performance. 514 269 67 67 708 529 217 217 993 988 423 458 1802 2261 1016 1149 670 203 203 153 107 925 627 627 474 334 1227 1106 1106 848 598 2082 2238 2429 1898 1352 0.034 0.022 0.0219 0.0807 0.0784 0.034 0.022 0.0219 0.0807 0.0784 2003-12-31 2003-12-31 2003-12-31 2003-12-31 2005-09-30 2003-12-31 2003-12-31 2003-12-31 2003-12-31 2003-12-31 532 288 87 87 760 582 271 271 1082 1078 518 553 The investment adviser has contractually agreed to limit certain "fund operating expenses" incurred by the fund that exceed an annual rate of 0.15% through 12/31/2014, and 0.20% from 01/01/2015 through 6/30/2015. The agreement will terminate: (i) if the investment advisory agreement is terminated, or (ii) upon ninety days' prior written notice by the Pacific Life Funds. The investment adviser may recoup amounts reimbursed in future periods, not to exceed 3 years from the end of the fiscal year in which the reimbursement took place, provided that the recoupment would not cause the fund to exceed the expense cap. 1995 2446 1.39 1225 1356 You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Pacific Life Funds. <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleShareholderFeesPLHIGHINCOMEFUND column period compact * ~</div> 100000 As with any mutual fund, the value of the fund's investments, and therefore the value of your shares, may go up or down. Accordingly, you could lose money. The fund may be affected by the following principal risks, among other non-principal risks: <ul type="square"><li style="margin-left:-20px"><strong>Active Management Risk: </strong>There is no guarantee that the manager's principal investment strategies and techniques, as well as particular investment decisions, will achieve the fund's investment goal, which could have an adverse impact on the fund's performance generally, relative to other funds with similar investment goals or relative to its benchmark.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Credit Risk: </strong>An issuer or guarantor of a debt instrument might be unable or unwilling to meet its financial obligations.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Debt Securities Risk:</strong> Debt securities are affected by many factors, including prevailing interest rates, market conditions and market liquidity. Volatility of below investment grade debt securities (including loans), may be relatively greater than for investment grade securities.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Floating Rate Loan Risk: </strong>Floating rate loans (or bank loans) are usually rated below investment grade. The market for floating rate loans may be subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods. Investments in floating rate loans are typically in the form of an assignment or participation. Investors in a loan participation assume the credit risk associated with the borrower and may assume the credit risk associated with an interposed financial intermediary. Accordingly, if a lead lender becomes insolvent or a loan is foreclosed, the fund could experience delays in receiving payments or suffer a loss. In an assignment, the fund effectively becomes a lender under the loan agreement with the same rights and obligations as the assigning bank or other financial intermediary. Accordingly, if the loan is foreclosed, the fund could become part owner of any collateral, and would bear the costs and liabilities associated with owning and disposing of the collateral. Due to their lower place in the borrower's capital structure and possible unsecured status, junior loans involve a higher degree of overall risk than senior loans of the same borrower. In addition, the floating rate feature of loans means that floating rate loans will not generally experience capital appreciation in a declining interest rate environment. Declines in interest rates may also increase prepayments of debt obligations and require the fund to invest assets at lower yields.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Foreign Markets Risk: </strong>Exposure to foreign markets through issuers can involve additional risks relating to market, economic, political, regulatory, geopolitical, or other conditions. These factors can make foreign investments more volatile and less liquid than U.S. investments. In addition, foreign markets can react differently to these conditions than the U.S. market.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>High-Yield or "Junk" Securities Risk: </strong>High yield securities are typically issued by companies that are highly leveraged, less creditworthy or financially distressed and are considered to be mostly speculative in nature (high risk), potentially less liquid, and subject to a greater risk of loss, that is they are more likely to default than higher rated securities.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Interest Rate Risk: </strong>Values of debt securities fluctuate as interest rates change. Debt securities with longer durations or fixed interest rates tend to be more sensitive to changes in interest rates, making them generally more volatile than debt securities with shorter durations or floating or adjustable interest rates.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Issuer Risk:</strong> The value of a security or instrument may decline for reasons directly related to the issuer, such as management, performance, financial leverage and reduced demand for the issuer's goods or services.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Liquidity Risk: </strong>Liquidity is the ability to sell securities or other investments within a reasonable amount of time at approximately the price at which the fund has valued the securities or other investments, which relies on the willingness of market participants to buy and sell securities. Certain investments may be difficult to purchase and sell, particularly during adverse market conditions, because there is a limited market for the investment or there are restrictions on resale. If the fund holds illiquid securities, it may be unable to take advantage of market opportunities or it may be forced to sell other, more desirable, liquid securities or sell illiquid securities at a loss if it is required to raise cash to conduct its operations.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Market and Regulatory Risk: </strong>Events in the financial markets and in the economy may cause volatility and uncertainty and may affect performance. Events in one market may adversely impact other markets. Future events may impact the fund in unforeseen ways. Traditionally liquid investments may experience periods of diminished liquidity. Governmental and regulatory actions may impair fund management and have unexpected consequences on particular markets, strategies, or investments.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Price Volatility Risk: </strong>The market value of the fund's investments will go up or down, sometimes rapidly or unpredictably, or may fail to rise, as a result of market conditions or for reasons specific to a particular issuer. The volatility of non-investment grade debt securities (including loans) may be greater than for investment grade securities.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>U.S. Government Securities Risk: </strong>Not all U.S. government securities are backed or guaranteed by the U.S. government and different U.S. government securities are subject to varying degrees of credit risk. There is risk that the U.S. government will not provide financial support to U.S. government agencies, instrumentalities or sponsored enterprises if it is not obligated to do so by law.</li></ul> "Other Expenses" for Class A, Class C and Advisor Class are based on estimated amounts for the current fiscal year. Expense information has been restated to reflect current fees. As with any mutual fund, the value of the fund's investments, and therefore the value of your shares, may go up or down. Accordingly, you could lose money. <ul type="square"><li style="margin-left:-20px"><b>Non-Diversification Risk: </b>The fund is classified as non-diversified and may invest a greater percentage of its assets in a single issuer or a fewer number of issuers than a diversified fund. This increases potential price volatility and the risk that its value could go down because of the poor performance of a single investment or a small number of investments. Being classified as non-diversified does not prevent the manager from managing as though it were a diversified portfolio. </li></ul> 0.0388 0.0261 0.0542 0.0627 -0.1026 <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleAnnualFundOperatingExpensesPLHIGHINCOMEFUND column period compact * ~</div> 0.1849 0.0823 0.0262 2010-12-31 2010-12-31 2010-12-31 2010-12-31 2010-12-31 2003-12-31 532 188 87 87 0.0795 760 582 271 271 1082 1078 518 553 -0.0303 -0.0387 -0.0185 1995 -0.0314 2446 0.0089 1225 0.0239 1356 0.0784 0.0211 -0.1214 0.001 0.0558 0.0347 0.0218 0.0223 0.0357 0.0392 0.0439 0.065 -0.0025 -0.0472 0.0149 0.0476 <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleAnnualTotalReturnsPLPORTFOLIOOPTIMIZATIONMODERATEBarChart column period compact * ~</div> <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleShareholderFeesPLSTRATEGICINCOMEFUND column period compact * ~</div> <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleAverageAnnualTotalReturnsTransposedPLPORTFOLIOOPTIMIZATIONMODERATE column period compact * ~</div> <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleAnnualFundOperatingExpensesPLSTRATEGICINCOMEFUND column period compact * ~</div> 514 169 67 67 0.0109 708 529 217 217 993 988 423 458 1802 2261 1016 1149 <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleShareholderFeesPLSHORTDURATIONINCOMEFUND column period compact * ~</div> 2003-12-31 2003-12-31 2003-12-31 2003-12-31 2003-12-31 2005-09-30 2003-12-31 2003-12-31 2003-12-31 2003-12-31 2003-12-31 <strong>PL Income Fund</strong> <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleAnnualFundOperatingExpensesPLSHORTDURATIONINCOMEFUND column period compact * ~</div> <strong>Investment goal</strong> This fund seeks a high level of current income; <b>Principal risks</b> <b>Fund performance</b> capital appreciation is of secondary importance. The fund does not have a full calendar year of performance. Thus, a performance bar chart and tables are not included for the fund. <strong>Fees and expenses</strong> <strong>Shareholder Fees </strong>(fees paid directly from your investment) The investment adviser has contractually agreed to limit certain "fund operating expenses" incurred by the fund that exceed an annual rate of 0.15% through 12/31/2014, and 0.20% from 1/1/2015 through 6/30/2016. The agreement will terminate: (i) if the investment advisory agreement is terminated, or (ii) upon ninety days' prior written notice by the Pacific Life Funds. The investment adviser may recoup amounts reimbursed in future periods, not to exceed 3 years from the end of the fiscal year in which the reimbursement took place, provided that the recoupment would not cause the fund to exceed the expense cap. <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleShareholderFeesPLPORTFOLIOOPTIMIZATIONCONSERVATIVE column period compact * ~</div> 1.39 <strong>Annual fund operating expenses </strong>(expenses that you pay each year as a percentage of the value of your investment) <strong>Examples</strong> <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleExpenseExamplePLSTRATEGICINCOMEFUND column period compact * ~</div> "Other Expenses" are based on estimated amounts for the current fiscal year. The examples below are intended to help you compare the cost of investing in the fund with the cost of investing in other funds of Pacific Life Funds or other mutual funds. Each example assumes that you invest $10,000 in the noted share class of the fund for the time periods indicated, that your investment has a 5% return each year, and that the fund's annual operating expenses remain as stated in the previous table throughout the periods shown. Although your actual costs may be higher or lower, the Examples show what your costs would be based on these assumptions. As with any mutual fund, the value of the fund's investments, and therefore the value of your shares, may go up or down. Accordingly, you could lose money. <ul type="square"><li style="margin-left:-20px"><b>Non-Diversification Risk:</b> The fund is classified as non-diversified and may invest a greater percentage of its assets in a single issuer or a fewer number of issuers than a diversified fund. This increases potential price volatility and the risk that its value could go down because of the poor performance of a single investment or a small number of investments. Being classified as non-diversified does not prevent the manager from managing as though it were a diversified portfolio.</li></ul> Your expenses (in dollars) if you <strong>SELL</strong> your shares at the end of each period. <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleExpenseExampleNoRedemptionPLSTRATEGICINCOMEFUND column period compact * ~</div> Your expenses (in dollars) if you <strong>DON'T SELL</strong> your shares at the end of each period. <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleAnnualFundOperatingExpensesPLPORTFOLIOOPTIMIZATIONCONSERVATIVE column period compact * ~</div> <strong>Portfolio turnover</strong> The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in Annual fund operating expenses or in the Examples, affect the fund's performance. During the most recent fiscal year, the fund's turnover rate was 199.30% of the average value of the fund. <strong>Principal investment strategies</strong> 83 264 485 1122 This fund invests principally in income producing debt instruments. When selecting investments (including income producing investments), the manager may invest in instruments that it believes have or have the potential for capital appreciation (including non-income producing investments). The fund will generally 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. <br /><br />The fund expects to maintain a duration position within two years (plus or minus) of the Barclays U.S. Aggregate Bond Index. Duration is often used to measure a bond's sensitivity to interest rates. The longer a fund's duration, the more sensitive it is to interest rate risk. The shorter a fund's duration, the less sensitive it is to interest rate risk. The duration of the Barclays U.S. Aggregate Bond Index was 5.01 years as of March 31, 2012.<br /><br />Individual investment selection is based on the manager's fundamental research process. Sector allocations are determined based on the manager's assessment of risk/return opportunities. The manager performs a credit analysis on each potential issuer and a relative value analysis on each potential investment. Decisions to sell are generally based upon the manager's belief that the particular investment has achieved its appreciation targets, reached its relative value opportunities, and/or that there have been changes in the fundamentals of the issuer. 83 264 485 1122 <strong>Principal risks</strong> <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleAnnualTotalReturnsPLPORTFOLIOOPTIMIZATIONCONSERVATIVEBarChart column period compact * ~</div> As with any mutual fund, the value of the fund's investments, and therefore the value of your shares, may go up or down. Accordingly, you could lose money. The fund may be affected by the following principal risks, among other non-principal risks: <ul type="square"><li style="margin-left:-20px"><strong>Active Management Risk: </strong>There is no guarantee that the manager's principal investment strategies and techniques, as well as particular investment decisions, will achieve the fund's investment goal, which could have an adverse impact on the fund's performance generally, relative to other funds with similar investment goals or relative to its benchmark.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Credit Risk: </strong>An issuer or guarantor of a debt instrument might be unable or unwilling to meet its financial obligations.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Debt Securities Risk:</strong> Debt securities are affected by many factors, including prevailing interest rates, market conditions and market liquidity. Volatility of below investment grade debt securities (including loans), may be relatively greater than for investment grade securities.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Floating Rate Loan Risk: </strong>Floating rate loans (or bank loans) are usually rated below investment grade. The market for floating rate loans may be subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods. Investments in floating rate loans are typically in the form of an assignment or participation. Investors in a loan participation assume the credit risk associated with the borrower and may assume the credit risk associated with an interposed financial intermediary. Accordingly, if a lead lender becomes insolvent or a loan is foreclosed, the fund could experience delays in receiving payments or suffer a loss. In an assignment, the fund effectively becomes a lender under the loan agreement with the same rights and obligations as the assigning bank or other financial intermediary. Accordingly, if the loan is foreclosed, the fund could become part owner of any collateral, and would bear the costs and liabilities associated with owning and disposing of the collateral. Due to their lower place in the borrower's capital structure and possible unsecured status, junior loans involve a higher degree of overall risk than senior loans of the same borrower. In addition, the floating rate feature of loans means that floating rate loans will not generally experience capital appreciation in a declining interest rate environment. Declines in interest rates may also increase prepayments of debt obligations and require the fund to invest assets at lower yields.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Foreign Markets Risk: </strong>Exposure to foreign markets through issuers can involve additional risks relating to market, economic, political, regulatory, geopolitical, or other conditions. These factors can make foreign investments more volatile and less liquid than U.S. investments. In addition, foreign markets can react differently to these conditions than the U.S. market.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>High-Yield or "Junk" Securities Risk: </strong>High yield securities are typically issued by companies that are highly leveraged, less creditworthy or financially distressed and are considered to be mostly speculative in nature (high risk), potentially less liquid, and subject to a greater risk of loss, that is they are more likely to default than higher rated securities.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Interest Rate Risk: </strong>Values of debt securities fluctuate as interest rates change. Debt securities with longer durations or fixed interest rates tend to be more sensitive to changes in interest rates, making them generally more volatile than debt securities with shorter durations or floating or adjustable interest rates.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Issuer Risk:</strong> The value of a security or instrument may decline for reasons directly related to the issuer, such as management, performance, financial leverage and reduced demand for the issuer's goods or services.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Liquidity Risk: </strong>Liquidity is the ability to sell securities or other investments within a reasonable amount of time at approximately the price at which the fund has valued the securities or other investments, which relies on the willingness of market participants to buy and sell securities. Certain investments may be difficult to purchase and sell, particularly during adverse market conditions, because there is a limited market for the investment or there are restrictions on resale. If the fund holds illiquid securities, it may be unable to take advantage of market opportunities or it may be forced to sell other, more desirable, liquid securities or sell illiquid securities at a loss if it is required to raise cash to conduct its operations.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Market and Regulatory Risk: </strong>Events in the financial markets and in the economy may cause volatility and uncertainty and may affect performance. Events in one market may adversely impact other markets. Future events may impact the fund in unforeseen ways. Traditionally liquid investments may experience periods of diminished liquidity. Governmental and regulatory actions may impair fund management and have unexpected consequences on particular markets, strategies, or investments.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Price Volatility Risk: </strong>The market value of the fund's investments will go up or down, sometimes rapidly or unpredictably, or may fail to rise, as a result of market conditions or for reasons specific to a particular issuer. The volatility of non-investment grade debt securities (including loans) may be greater than for investment grade securities.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>U.S. Government Securities Risk: </strong>Not all U.S. government securities are backed or guaranteed by the U.S. government and different U.S. government securities are subject to varying degrees of credit risk. There is risk that the U.S. government will not provide financial support to U.S. government agencies, instrumentalities or sponsored enterprises if it is not obligated to do so by law. </li></ul> <strong>Fund performance</strong> The bar chart and table below provide some indication of the risks of investing in the fund by showing changes in the fund's performance from year-to-year and by showing how the fund's returns compare to its benchmark index, which provides a broad measure of market performance. The bar chart shows the performance of the fund's Class A shares. The fund's Class C and Advisor Class shares do not yet have a full calendar year of performance and are not included in the table below. <br /><br />Past performance (before and after taxes) is not necessarily an indication of how the fund will perform in the future. Performance reflects expense limitations that were in effect during the periods presented. Sales loads are not reflected in the chart below. If these amounts were reflected, returns would be lower. Updated performance information may be obtained at our website: www.mutualfunds.pacificlife.com/mfc/home/performance.html, or by calling customer service at (800) 722-2333 (select Option 2). The table that follows describes the fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Pacific Life Funds. More information about these and other discounts is available from your financial professional and in the Overview of the Share Classes section in this prospectus. <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleAverageAnnualTotalReturnsTransposedPLPORTFOLIOOPTIMIZATIONCONSERVATIVE column period compact * ~</div> <strong>Year by year total return (%)</strong> <br /></strong>as of December 31 each year 0.055 0 0 0 0 0 0.05 0.01 0 0 <b>Average annual total returns</b><br />For the periods ended December 31, 2011 The fund does not have a full calendar year of performance. <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleExpenseExamplePLSHORTDURATIONINCOMEFUND column period compact * ~</div> 0.002 0.002 0.002 0.002 0.002 <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleExpenseExampleNoRedemptionPLSHORTDURATIONINCOMEFUND column period compact * ~</div> 0.0025 0.01 0.01 0 0.005 0.0069 0.0069 0.0069 0.0069 0.0069 <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleExpenseExamplePLPORTFOLIOOPTIMIZATIONCONSERVATIVE column period compact * ~</div> 0.0142 0.0217 0.0217 0.0167 0.0117 <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleExpenseExampleNoRedemptionPLPORTFOLIOOPTIMIZATIONCONSERVATIVE column period compact * ~</div> The after-tax returns (a) are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes; and (b) are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. In some instances, the return after taxes on distributions and sale of shares may be greater than the return before taxes because the investor is assumed to be able to use the capital loss of the sale of fund shares to offset other taxable capital gains. 1.993 You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Pacific Life Funds. 100000 <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleExpenseExamplePLHIGHINCOMEFUND column period compact * ~</div> "Other Expenses" for the Advisor Class are based on estimated amounts for the current fiscal year. Expense information has been restated to reflect current fees. As with any mutual fund, the value of the fund's investments, and therefore the value of your shares, may go up or down. Accordingly, you could lose money. The bar chart and table below provide some indication of the risks of investing in the fund by showing changes in the fund's performance from year-to-year and by showing how the fund's returns compare to its benchmark index, which provides a broad measure of market performance. (800) 722-2333 (select Option 2) www.mutualfunds.pacificlife.com/mfc/home/performance.html Past performance (before and after taxes) is not necessarily an indication of how the fund will perform in the future. Sales loads are not reflected in the chart below. If these amounts were reflected, returns would be lower. <b>PL Portfolio Optimization Conservative Fund</b> The after-tax returns (a) are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes; and <b>Investment goal</b> (b) are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. In some instances, the return after taxes on distributions and sale of shares may be greater than the return before taxes because the investor is assumed to be able to use the capital loss of the sale of fund shares to offset other taxable capital gains. This fund seeks current income and preservation of capital. <b>Fees and expenses</b> The table that follows describes the fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Pacific Life Funds. More information about these and other discounts is available from your financial professional and in the Overview of the Share Classes section in this prospectus. <strong>Shareholder Fees </strong>(fees paid directly from your investment) <strong>Annual fund operating expenses </strong>(expenses that you pay each year as a percentage of the value of your investment) "Other Expenses" for the Advisor Class shares are based on estimated amounts for the current fiscal year. <b>Class A return for the period 1/1/12 through 3/31/12:</b> 2012-03-31 The investment adviser has contractually agreed to limit certain "fund operating expenses" incurred by the fund that exceed an annual rate of 0.15% through 6/30/2015, and 0.30% from 7/1/2015 through 6/30/2022 for Class A, B, C and R shares; 0.20% through 12/31/2015, and 0.30% from 1/1/2016 through 6/30/2023 for Advisor Class shares. The agreement will terminate: (i) if the investment advisory agreement is terminated, or (ii) upon ninety days' prior written notice by the Pacific Life Funds. The investment adviser may recoup amounts reimbursed in future periods, not to exceed 3 years from the end of the fiscal year in which the reimbursement took place, provided that the recoupment would not cause the fund to exceed the expense cap. 0.023 <b>Best quarterly performance reflected within the bar chart:</b> 2011-12-31 <strong>Examples</strong> 0.0304 <b>worst quarterly performance reflected within the bar chart:</b> <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleExpenseExampleNoRedemptionPLHIGHINCOMEFUND column period compact * ~</div> 2011-09-30 The examples below are intended to help you compare the cost of investing in the fund with the cost of investing in other funds of Pacific Life Funds or other mutual funds. Each example assumes that you invest $10,000 in the noted share class of the fund for the time periods indicated, that your investment has a 5% return each year, and that the fund's annual operating expenses remain as stated in the previous table throughout the periods shown, except for the expense caps, which are only reflected for the contractual period. Although your actual costs may be higher or lower, the Examples show what your costs would be based on these assumptions. 0 You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Pacific Life Funds. 50000 As with any mutual fund, the value of the fund's investments, and therefore the value of your shares, may go up or down. Accordingly, you could lose money. The fund may be affected by the following principal risks, among other non-principal risks:<ul type="square"><li style="margin-left:-20px"><b>Active Management Risk:</b> There is no guarantee that the manager's principal investment strategies and techniques, as well as particular investment decisions, will achieve the fund's investment goal, which could have an adverse impact on the fund's performance generally, relative to other funds with similar investment goals or relative to its benchmark.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Credit Risk:</b> An issuer or guarantor of a debt instrument might be unable or unwilling to meet its financial obligations.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Debt Securities Risk:</b> Debt securities are affected by many factors, including prevailing interest rates, market conditions and market liquidity. Volatility of below investment grade debt securities (including loans), may be relatively greater than for investment grade securities.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Floating Rate Loan Risk: </b>Floating rate loans (or bank loans) are usually rated below investment grade. The market for floating rate loans may be subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods. Investments in floating rate loans are typically in the form of an assignment or participation. Investors in a loan participation assume the credit risk associated with the borrower and may assume the credit risk associated with an interposed financial intermediary. Accordingly, if a lead lender becomes insolvent or a loan is foreclosed, the fund could experience delays in receiving payments or suffer a loss. In an assignment, the fund effectively becomes a lender under the loan agreement with the same rights and obligations as the assigning bank or other financial intermediary. Accordingly, if the loan is foreclosed, the fund could become part owner of any collateral, and would bear the costs and liabilities associated with owning and disposing of the collateral. Due to their lower place in the borrower's capital structure and possible unsecured status, junior loans involve a higher degree of overall risk than senior loans of the same borrower. In addition, the floating rate feature of loans means that floating rate loans will not generally experience capital appreciation in a declining interest rate environment. Declines in interest rates may also increase prepayments of debt obligations and require the fund to invest assets at lower yields.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Foreign Markets Risk:</b> Exposure to foreign markets through issuers can involve additional risks relating to market, economic, political, regulatory, geopolitical, or other conditions. These factors can make foreign investments more volatile and less liquid than U.S. investments. In addition, foreign markets can react differently to these conditions than the U.S. market.</li></ul><ul type="square"><li style="margin-left:-20px"><b>High-Yield or "Junk" Securities Risk:</b> High yield securities are typically issued by companies that are highly leveraged, less creditworthy or financially distressed and are considered to be mostly speculative in nature (high risk), potentially less liquid, and subject to a greater risk of loss, that is they are more likely to default than higher rated securities.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Interest Rate Risk: </b> Values of debt securities fluctuate as interest rates change. Debt securities with longer durations or fixed interest rates tend to be more sensitive to changes in interest rates, making them generally more volatile than debt securities with shorter durations or floating or adjustable interest rates.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Issuer Risk:</b> The value of a security or instrument may decline for reasons directly related to the issuer, such as management, performance, financial leverage and reduced demand for the issuer's goods or services.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Liquidity Risk:</b> Liquidity is the ability to sell securities or other investments within a reasonable amount of time at approximately the price at which the fund has valued the securities or other investments, which relies on the willingness of market participants to buy and sell securities. Certain investments may be difficult to purchase and sell, particularly during adverse market conditions, because there is a limited market for the investment or there are restrictions on resale. If the fund holds illiquid securities, it may be unable to take advantage of market opportunities or it may be forced to sell other, more desirable, liquid securities or sell illiquid securities at a loss if it is required to raise cash to conduct its operations.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Market and Regulatory Risk:</b> Events in the financial markets and in the economy may cause volatility and uncertainty and may affect performance. Events in one market may adversely impact other markets. Future events may impact the fund in unforeseen ways. Traditionally liquid investments may experience periods of diminished liquidity. Governmental and regulatory actions may impair fund management and have unexpected consequences on particular markets, strategies, or investments.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Non-Diversification Risk:</b> The fund is classified as non-diversified and may invest a greater percentage of its assets in a single issuer or a fewer number of issuers than a diversified fund. This increases potential price volatility and the risk that its value could go down because of the poor performance of a single investment or a small number of investments. Being classified as non-diversified does not prevent the manager from managing as though it were a diversified portfolio.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Price Volatility Risk:</b> The market value of the fund's investments will go up or down, sometimes rapidly or unpredictably, or may fail to rise, as a result of market conditions or for reasons specific to a particular issuer. The volatility of non-investment grade debt securities (including loans) may be greater than for investment grade securities.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Redemption Risk:</b> Because the fund may serve as an Underlying Fund of a "fund of funds" of Pacific Life Funds (such as the PL Portfolio Optimization Funds or the PL Alternative Strategies Fund) and thus a significant percentage of its outstanding shares may be held by the fund of funds, a change in asset allocation by a fund of funds, could result in large redemptions out of the fund, causing potential increases in expenses to the fund and sale of securities in a short timeframe, both of which could negatively impact performance.</li></ul> <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleShareholderFeesPLFLOATINGRATEINCOMEFUND column period compact * ~</div> Your expenses (in dollars) if you <strong>SELL </strong>your shares at the end of each period. Your expenses (in dollars) if you <strong>DON'T SELL </strong>your shares at the end of each period. <strong>Portfolio turnover</strong> The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in Annual fund operating expenses or in the Examples, affect the fund's performance. During the most recent fiscal year, the fund's turnover rate was 10.20% of the average value of the fund. 0.102 <strong>Principal investment strategies</strong> <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleAnnualFundOperatingExpensesPLFLOATINGRATEINCOMEFUND column period compact * ~</div> <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleAnnualFundOperatingExpensesPLFLOATINGRATEINCOMEFUNDCLASSP column period compact * ~</div> <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleExpenseExamplePLINCOMEFUND column period compact * ~</div> The fund seeks to achieve its investment goal through a strategy of allocating its assets to diverse investment styles within the two major asset classes of equity and debt securities. Under normal market conditions, the fund maintains a balance between the two major asset classes of equity and debt by allocating its assets in the following target amounts:<br/><br/><table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"><tr style="FONT-SIZE: 1pt" valign="bottom"><td width="79%"></td><td width="3%"></td><td width="1%" align="right"></td><td width="4%" align="right"></td><td width="1%" align="left"></td><td width="4%"></td><td width="1%" align="right"></td><td width="6%" align="right"></td><td width="1%" align="left"></td></tr><tr valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center"></td><td></td><td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>Asset Class</b> </td><td></td></tr><tr valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="left"><b>Fund</b> </td><td></td><td valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Debt</b> </td><td></td><td></td><td valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Equity</b> </td><td></td></tr><tr style="FONT-SIZE: 2pt" valign="bottom" align="center"><td valign="bottom" colspan="8" align="center"><div style="BORDER-BOTTOM: #000000 1pt solid; WIDTH: 100%; MARGIN-LEFT: 0%; FONT-SIZE: 0pt"></div></td><td></td></tr><tr valign="bottom"><td valign="bottom" align="left"><div style="TEXT-INDENT: -8pt; MARGIN-LEFT: 8pt">PL Portfolio Optimization Moderate Fund </div></td><td></td><td valign="bottom" nowrap="nowrap" align="left"></td><td valign="bottom" nowrap="nowrap" align="right">40 </td><td valign="bottom" nowrap="nowrap" align="left">% </td><td></td><td valign="bottom" nowrap="nowrap" align="left"></td><td valign="bottom" nowrap="nowrap" align="right">60 </td><td valign="bottom" nowrap="nowrap" align="left">% </td></tr><tr style="FONT-SIZE: 2pt" valign="bottom"><td valign="bottom" colspan="9"><div style="BORDER-BOTTOM: #000000 1pt solid; WIDTH: 100%; MARGIN-LEFT: 0%; FONT-SIZE: 0pt"></div></td></tr></table><br/>The fund is a "fund of funds" that invests primarily in a combination of other mutual fund portfolios of the Pacific Life Funds (Underlying Funds). Within the broad asset classes of equity and debt, the fund diversifies its holdings by investing in Underlying Funds that represent a variety of investment styles and security types. The portion of the fund invested in equity securities may be allocated to Underlying Funds that, in turn, invest in equity securities that may include, among others:<br /><br /><ul type="square"><li style="margin-left:-20px">Growth, value and "core" stocks;</li></ul><ul type="square"><li style="margin-left:-20px">Market capitalizations that represent large-, mid- and small- sized companies;</li></ul><ul type="square"><li style="margin-left:-20px">Stocks of companies with a history of paying dividends;</li></ul><ul type="square"><li style="margin-left:-20px">Sector funds;</li></ul><ul type="square"><li style="margin-left:-20px">Domestic and international stocks, including emerging market stocks.</li></ul>The portion of the Fund invested in debt securities may be allocated to Underlying Funds that, in turn, invest in debt securities that may include, among others:<ul type="square"><li style="margin-left:-20px">Investment grade debt securities, which may include U.S. Government securities, corporate bonds, mortgage-related securities, and other asset-backed securities;</li></ul><ul type="square"><li style="margin-left:-20px">International debt securities, which may include emerging market debt;</li></ul><ul type="square"><li style="margin-left:-20px">Debt instruments of varying duration;</li></ul><ul type="square"><li style="margin-left:-20px">High-yield bonds;</li></ul><ul type="square"><li style="margin-left:-20px">Floating rate loans;</li></ul><ul type="square"><li style="margin-left:-20px">Inflation-indexed bonds; and</li></ul><ul type="square"><li style="margin-left:-20px">Money market instruments.</li></ul>The fund may also, at any time, invest in Underlying Funds that hold other equity or debt securities. Underlying Funds may seek investment exposure through direct investments in securities or through derivatives. The fund may invest a significant portion of its assets in any single Underlying Fund. The fund will be as fully invested, as practical, although it may maintain liquidity reserves to meet redemption requests.<br /><br />The asset class targets shown above are targets and the actual amounts invested in the two major asset classes may vary because of market movements or tactical decisions made by the investment adviser (PLFA); however, the fund's assets allocated to the two major asset classes are not normally expected to vary by more than 10% from the asset class target amounts. When determining which Underlying Fund corresponds to the selected investment styles and security types, PLFA takes into account that an Underlying Fund may utilize more than one investment style and may invest in more than one type of security.<br /><br />A two-step asset allocation process is used to construct the funds. The process begins by developing the fund's target blend between the two broad asset classes and underlying investment styles within each broad asset class. This is then followed by determining target allocations among the various Underlying Funds in order to produce the desired risk/return profile. PLFA's allocations among the Underlying Funds are determined using this asset allocation process which seeks to optimize returns for the fund by allocating among different asset classes given the desired risk/return profile of the fund. Periodically, PLFA will re-evaluate the fund's allocations to the various Underlying Funds and may update the fund's target allocations to such Underlying Funds at that time. PLFA may change the target allocations among asset classes and investment styles and/or the allocations to the Underlying Funds from time to time, based on PLFA's assessment of market conditions or other factors.<br /><br />When investing purchase proceeds and meeting redemptions for the fund, PLFA may use a methodology to identify assets to be purchased or sold by the fund that factors in the target allocations and the current allocations of the fund. This methodology is intended to help maintain target allocations, although there is no assurance that the fund will maintain its target allocations using this methodology.<br /><br />For additional information about the fund's investment strategies, the names and investment strategies of the Underlying Funds in which the fund may invest and where to obtain information about the fund's investments in the Underlying Funds as of the most recent month end, please see the Additional Information About Investments, Strategies and Risks section in this prospectus. <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleExpenseExampleNoRedemptionPLINCOMEFUND column period compact * ~</div> <b>PL Portfolio Optimization Aggressive Fund</b> <b>Investment goal</b> This fund seeks high, long-term capital appreciation. <b>Fees and expenses</b> The table that follows describes the fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Pacific Life Funds. More information about these and other discounts is available from your financial professional and in the Overview of the Share Classes section in this prospectus. <b>Shareholder Fees </b>(fees paid directly from your investment) <b>Annual fund operating expenses </b>(expenses that you pay each year as a percentage of the value of your investment) <b>Principal risks</b> As with any mutual fund, the value of the fund's investments, and therefore the value of your shares, may go up or down. Accordingly, you could lose money. The fund may be affected by the following principal risks, among other non-principal risks:<ul type="square"><li style="margin-left:-20px"><b>Asset Allocation Fund of Funds Risk: </b>Typically, the fund of funds is exposed to the same risks as the Underlying Funds in direct proportion to the allocation of assets among those portfolios. Allocations among the Underlying Funds are determined using an asset allocation process, which seeks to optimize returns by allocating among different asset classes given various levels of risk tolerance. The theory behind asset allocation is that diversification among asset classes can help reduce volatility over the long-term, which assumes that asset classes may not move in tandem and that positive returns in one or more classes will help offset negative returns in other asset classes, although you still may lose money and/or experience volatility, particularly during periods of broad market declines. Market and asset class performance may differ in the future from the historical performance and from the assumptions used to develop the allocations. There's a risk that you could achieve better returns by investing in an individual portfolio or portfolios representing a single asset class rather than using asset allocation.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Conflicts of Interest Risk:</b> PLFA may be subject to competing interests that have the potential to influence its investment decisions for the fund. For example, PLFA may be influenced by its view of the best interests of Underlying Funds, such as a view that an Underlying Fund may benefit from additional assets or could be harmed by redemptions.</li></ul><b>Principal risks from holdings in Underlying Funds</b><ul type="square"><li style="margin-left:-20px"><b>Active Management Risk: </b>There is no guarantee that the manager's principal investment strategies and techniques, as well as particular investment decisions, will achieve the fund's investment goal, which could have an adverse impact on the fund's performance generally, relative to other funds with similar investment goals or relative to its benchmark.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Credit Risk: </b>An issuer or guarantor of a debt instrument might be unable or unwilling to meet its financial obligations.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Currency Risk: </b>Securities denominated in foreign currencies may be affected by changes in rates of exchange between those currencies and the U.S. dollar. Currency exchange rates may be volatile and may be affected by, among other factors, the general economic conditions of a country, the actions of the U.S. and foreign governments or central banks, the imposition of currency controls, and speculation. A decline in the value of a foreign currency versus the U.S. dollar reduces the value in U.S. dollars of investments denominated in that foreign currency. Currency risk may also entail some degree of <em>liquidity risk</em>, particularly in emerging market currencies.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Debt Securities Risk:</b> Debt securities are affected by many factors, including prevailing interest rates, market conditions and market liquidity. Volatility of below investment grade debt securities (including loans), may be relatively greater than for investment grade securities.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Derivatives Risk: </b>Derivatives can be complex instruments, may experience sudden and unpredictable changes in price or liquidity and may be difficult to value, sell or unwind. The value of derivatives is based on the value of other securities or indexes and the fund may not hold the security or index on which the value of a derivative is based. Derivatives can also create investment exposure that exceeds the initial amount invested (known as <em>leverage risk</em>) - consequently, derivatives may experience very large swings in value. The use of derivatives may result in the fund losing more money than it would have lost if it had invested directly in the security or index. Derivative transactions may also involve a counterparty. Such transactions are subject to the credit risk and/or the ability of the counterparty to perform in accordance with the terms of the transaction.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Emerging Markets Risk: </b>Investments in or exposure to investments in emerging markets, such as those in Latin America, Asia, the Middle East, Eastern Europe and Africa, may be riskier than investments in or exposure to investments in U.S. and certain developed markets for many reasons, including smaller market capitalizations, greater price volatility, less liquidity, political and economic instability, less governmental regulation of the financial industry and markets, and less stringent financial reporting and accounting standards and controls.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Equity Securities Risk: </b>Stock markets are volatile. The price of equity securities tends to go up or down in value, sometimes rapidly and unpredictably, in response to many factors, which may be due to the particular issuer, its industry or broader economic or market events.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Foreign Markets Risk: </b>Exposure to foreign markets through issuers can involve additional risks relating to market, economic, political, regulatory, geopolitical, or other conditions. These factors can make foreign investments more volatile and less liquid than U.S. investments. In addition, foreign markets can react differently to these conditions than the U.S. market.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Forward Commitments Risk: </b>Securities or currencies whose terms are defined on a date in the future or transactions that are scheduled to settle on a date in the future (beyond usual and customary settlement), called forward commitments, as well as when-issued securities, are subject to risk of default or bankruptcy of the counterparty. In forward commitment or when-issued transactions, if the counterparty fails to consummate the transaction, the fund may miss the opportunity of obtaining a price or yield considered to be advantageous.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Geographic Concentration Risk: </b>Concentrating investments in a single country, a limited number of countries, or a particular geographic region makes the fund more susceptible to adverse economic, political, social, regulatory and other developments in that country, countries or region.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Growth Companies Risk: </b>Growth companies have the potential for above average or rapid growth but may give the fund a higher risk of price volatility than investments in "undervalued" companies.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Interest Rate Risk: </b>Values of debt securities fluctuate as interest rates change. Debt securities with longer durations or fixed interest rates tend to be more sensitive to changes in interest rates, making them generally more volatile than debt securities with shorter durations or floating or adjustable interest rates.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Issuer Risk:</b> The value of a security or instrument may decline for reasons directly related to the issuer, such as management, performance, financial leverage and reduced demand for the issuer's goods or services.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Large-Capitalization Companies Risk: </b>Large-capitalization companies tend to have more stable prices than small- or mid-capitalization companies, but are still subject to the risks of equity securities. In exchange for this potentially lower risk, the fund's value may not rise as much as the value of a fund that emphasizes companies with smaller market capitalizations.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Leverage Risk: </b>Leverage is investment exposure which exceeds the initial amount invested. The loss on a leveraged investment may far exceed the fund's principal amount invested. Leverage can magnify the fund's gains and losses and therefore increase its volatility. The fund is required to segregate liquid assets or otherwise cover its obligation created by an investment that is leveraged. The use of leverage may result in the portfolio having to liquidate fund holdings when it may not be advantageous to do so in order to satisfy its obligation or to meet segregation requirements.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Liquidity Risk: </strong>Liquidity is the ability to sell securities or other investments within a reasonable amount of time at approximately the price at which the fund has valued the securities or other investments, which relies on the willingness of market participants to buy and sell securities. Certain investments may be difficult to purchase and sell, particularly during adverse market conditions, because there is a limited market for the investment or there are restrictions on resale. If the fund holds illiquid securities, it may be unable to take advantage of market opportunities or it may be forced to sell other, more desirable, liquid securities or sell illiquid securities at a loss if it is required to raise cash to conduct its operations.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Market and Regulatory Risk: </b>Events in the financial markets and in the economy may cause volatility and uncertainty and may affect performance. Events in one market may adversely impact other markets. Future events may impact the fund in unforeseen ways. Traditionally liquid investments may experience periods of diminished liquidity. Governmental and regulatory actions may impair fund management and have unexpected consequences on particular markets, strategies, or investments.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Mid-Capitalization Companies Risk: </b>Mid-capitalization companies may be riskier and more susceptible to price swings than larger companies. Mid-capitalization companies may have a shorter history of operations, a more limited ability to raise capital, may have inexperienced management and limited product lines, and more speculative prospects for future growth or sustained earnings or market share than larger, more established companies.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Mortgage-Related and Other Asset-Backed Securities Risk: </b>Mortgage-related and other asset-backed securities are subject to certain other risks. The value of these securities will be influenced by the factors affecting the housing market and the market for the assets underlying such securities. As a result, during periods of declining asset value, difficult or frozen credit markets, swings in interest rates, or deteriorating economic conditions, mortgage-related and asset-backed securities may decline in value, face valuation difficulties, become more volatile and/or become illiquid. These securities are also subject to extension risk, where issuers may pay principal later than expected, and prepayment risk, where issuers may pay principal more quickly than expected, causing proceeds to be reinvested at lower prevailing interest rates.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Price Volatility Risk: </b>The market value of the fund's investments will go up or down, sometimes rapidly or unpredictably, or may fail to rise, as a result of market conditions or for reasons specific to a particular issuer. The volatility of investments in emerging market countries may be greater than for investments in U.S. and certain developed markets.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Small-Capitalization Companies Risk: </b>Small-capitalization companies may be riskier, less liquid and more susceptible to price swings than larger companies. Small-capitalization companies, particularly those in their developmental stages, may have a shorter history of operations, a more limited ability to raise capital, may have inexperienced management and limited product lines, and more speculative prospects for future growth or sustained earnings or market share than larger more established companies.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Small Number of Holdings Risk: </b>A fund with a small number of holdings may have greater exposure to those holdings which could increase potential price volatility compared to portfolios with a greater number of holdings.</li></ul><ul type="square"><li style="margin-left:-20px"><b>U.S. Government Securities Risk: </b>Not all U.S. government securities are backed or guaranteed by the U.S. government and different U.S. government securities are subject to varying degrees of credit risk. There is risk that the U.S. government will not provide financial support to U.S. government agencies, instrumentalities or sponsored enterprises if it is not obligated to do so by law.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Value Companies Risk: </b>Value companies are those that are thought to be undervalued and that a company's stock is trading for less than its intrinsic value. There is a risk that the determination that a stock is undervalued is not correct or is not recognized in the market.</li></ul> <b>Portfolio turnover</b> The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in Annual fund operating expenses or in the Examples, affect the fund's performance. During the most recent fiscal year, the fund's turnover rate was 12.51% of the average value of the fund. <b>Fund performance</b> The bar chart and table below provide some indication of the risks of investing in the fund by showing changes in the performance of the fund from year-to-year and by showing how the fund's returns compare to four broad-based benchmark indexes, which provide broad measures of market performance and correspond to four asset classes (domestic equity, international equity, fixed income and cash equivalents) that may be allocated to by the fund. The bar chart shows the performance of the fund's Class A shares. The fund's returns are also compared to its composite benchmark, which is comprised of up to the four broad-based indexes shown based on the target allocations for the fund that were in effect through the periods shown. The fund's Advisor Class shares do not yet have a full calendar year of performance and are not included in the table below.<br/><br/>Past performance (before and after taxes) is not necessarily an indication of how the fund will perform in the future. Performance reflects expense limitations that were in effect during the periods presented. Sales loads are not reflected in the chart below. If these amounts were reflected, returns would be lower. Updated performance information may be obtained at our website: www.mutualfunds.pacificlife.com/mfc/home/performance.html, or by calling customer service at (800) 722-2333 (select Option 2). <b>Year by year total return (%)</b><br />as of December 31 each year <b>Examples</b> The examples below are intended to help you compare the cost of investing in the fund with the cost of investing in other funds of Pacific Life Funds or other mutual funds. Each example assumes that you invest $10,000 in the noted share class of the fund for the time periods indicated, that your investment has a 5% return each year, and that the fund's annual operating expenses remain as stated in the previous table throughout the periods shown, except for the expense caps, which are only reflected for the contractual period. Although your actual costs may be higher or lower, the Examples show what your costs would be based on these assumptions. Your expenses (in dollars) if you <b>SELL </b>your shares at the end of each period. Your expenses (in dollars) if you <b>DON'T SELL </b>your shares at the end of each period. <b>Principal investment strategies</b> As with any mutual fund, the value of the fund's investments, and therefore the value of your shares, may go up or down. Accordingly, you could lose money. The fund may be affected by the following principal risks, among other non-principal risks:<ul type="square"><li style="margin-left:-20px"><b>Active Management Risk: </b>There is no guarantee that the manager's principal investment strategies and techniques, as well as particular investment decisions, will achieve the fund's investment goal, which could have an adverse impact on the fund's performance generally, relative to other funds with similar investment goals or relative to its benchmark. </li></ul><ul type="square"><li style="margin-left:-20px"><b>Credit Risk: </b>An issuer or guarantor of a debt instrument might be unable or unwilling to meet its financial obligations. </li></ul><ul type="square"><li style="margin-left:-20px"><b>Debt Securities Risk:</b> Debt securities are affected by many factors, including prevailing interest rates, market conditions and market liquidity. Volatility of below investment grade debt securities (including loans), may be relatively greater than for investment grade securities. </li></ul><ul type="square"><li style="margin-left:-20px"><b>Floating Rate Loan Risk: </b>Floating rate loans (or bank loans) are usually rated below investment grade. The market for floating rate loans may be subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods. Investments in floating rate loans are typically in the form of an assignment or participation. Investors in a loan participation assume the credit risk associated with the borrower and may assume the credit risk associated with an interposed financial intermediary. Accordingly, if a lead lender becomes insolvent or a loan is foreclosed, the fund could experience delays in receiving payments or suffer a loss. In an assignment, the fund effectively becomes a lender under the loan agreement with the same rights and obligations as the assigning bank or other financial intermediary. Accordingly, if the loan is foreclosed, the fund could become part owner of any collateral, and would bear the costs and liabilities associated with owning and disposing of the collateral. Due to their lower place in the borrower's capital structure and possible unsecured status, junior loans involve a higher degree of overall risk than senior loans of the same borrower. In addition, the floating rate feature of loans means that floating rate loans will not generally experience capital appreciation in a declining interest rate environment. Declines in interest rates may also increase prepayments of debt obligations and require the fund to invest assets at lower yields. </li></ul><ul type="square"><li style="margin-left:-20px"><b>Foreign Markets Risk: </b>Exposure to foreign markets through issuers can involve additional risks relating to market, economic, political, regulatory, geopolitical, or other conditions. These factors can make foreign investments more volatile and less liquid than U.S. investments. In addition, foreign markets can react differently to these conditions than the U.S. market. </li></ul><ul type="square"><li style="margin-left:-20px"><b>High-Yield or "Junk" Securities Risk: </b>High yield securities are typically issued by companies that are highly leveraged, less creditworthy or financially distressed and are considered to be mostly speculative in nature (high risk), potentially less liquid, and subject to a greater risk of loss, that is they are more likely to default than higher rated securities. </li></ul><ul type="square"><li style="margin-left:-20px"><b>Interest Rate Risk: </b>Values of debt securities fluctuate as interest rates change. Debt securities with longer durations or fixed interest rates tend to be more sensitive to changes in interest rates, making them generally more volatile than debt securities with shorter durations or floating or adjustable interest rates. </li></ul><ul type="square"><li style="margin-left:-20px"><b>Issuer Risk:</b> The value of a security or instrument may decline for reasons directly related to the issuer, such as management, performance, financial leverage and reduced demand for the issuer's goods or services. </li></ul><ul type="square"><li style="margin-left:-20px"><b>Liquidity Risk: </b>Liquidity is the ability to sell securities or other investments within a reasonable amount of time at approximately the price at which the fund has valued the securities or other investments, which relies on the willingness of market participants to buy and sell securities. Certain investments may be difficult to purchase and sell, particularly during adverse market conditions, because there is a limited market for the investment or there are restrictions on resale. If the fund holds illiquid securities, it may be unable to take advantage of market opportunities or it may be forced to sell other, more desirable, liquid securities or sell illiquid securities at a loss if it is required to raise cash to conduct its operations. </li></ul><ul type="square"><li style="margin-left:-20px"><b>Market and Regulatory Risk: </b>Events in the financial markets and in the economy may cause volatility and uncertainty and may affect performance. Events in one market may adversely impact other markets. Future events may impact the fund in unforeseen ways. Traditionally liquid investments may experience periods of diminished liquidity. Governmental and regulatory actions may impair fund management and have unexpected consequences on particular markets, strategies, or investments. </li></ul><ul type="square"><li style="margin-left:-20px"><b>Non-Diversification Risk: </b>The fund is classified as non-diversified and may invest a greater percentage of its assets in a single issuer or a fewer number of issuers than a diversified fund. This increases potential price volatility and the risk that its value could go down because of the poor performance of a single investment or a small number of investments. Being classified as non-diversified does not prevent the manager from managing as though it were a diversified portfolio. </li></ul><ul type="square"><li style="margin-left:-20px"><b>Price Volatility Risk: </b>The market value of the fund's investments will go up or down, sometimes rapidly or unpredictably, or may fail to rise, as a result of market conditions or for reasons specific to a particular issuer. The volatility of non-investment grade debt securities (including loans) may be greater than for investment grade securities. </li></ul> <b>Principal risks</b> As with any mutual fund, the value of the fund's investments, and therefore the value of your shares, may go up or down. Accordingly, you could lose money. The fund may be affected by the following principal risks, among other non-principal risks: <ul type="square"><li style="margin-left:-20px"><b>Asset Allocation Fund of Funds Risk: </b>Typically, the fund of funds is exposed to the same risks as the Underlying Funds in direct proportion to the allocation of assets among those portfolios. Allocations among the Underlying Funds are determined using an asset allocation process, which seeks to optimize returns by allocating among different asset classes given various levels of risk tolerance. The theory behind asset allocation is that diversification among asset classes can help reduce volatility over the long-term, which assumes that asset classes may not move in tandem and that positive returns in one or more classes will help offset negative returns in other asset classes, although you still may lose money and/or experience volatility, particularly during periods of broad market declines. Market and asset class performance may differ in the future from the historical performance and from the assumptions used to develop the allocations. There's a risk that you could achieve better returns by investing in an individual portfolio or portfolios representing a single asset class rather than using asset allocation.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Conflicts of Interest Risk:</b> PLFA may be subject to competing interests that have the potential to influence its investment decisions for the fund. For example, PLFA may be influenced by its view of the best interests of Underlying Funds, such as a view that an Underlying Fund may benefit from additional assets or could be harmed by redemptions. </li></ul><b>Principal risks from holdings in Underlying Funds</b><ul type="square"><li style="margin-left:-20px"><b>Active Management Risk: </b>There is no guarantee that the manager's principal investment strategies and techniques, as well as particular investment decisions, will achieve the fund's investment goal, which could have an adverse impact on the fund's performance generally, relative to other funds with similar investment goals or relative to its benchmark.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Credit Risk: </b>An issuer or guarantor of a debt instrument might be unable or unwilling to meet its financial obligations. </li></ul><ul type="square"><li style="margin-left:-20px"><b>Currency Risk: </b>Securities denominated in foreign currencies may be affected by changes in rates of exchange between those currencies and the U.S. dollar. Currency exchange rates may be volatile and may be affected by, among other factors, the general economic conditions of a country, the actions of the U.S. and foreign governments or central banks, the imposition of currency controls, and speculation. A decline in the value of a foreign currency versus the U.S. dollar reduces the value in U.S. dollars of investments denominated in that foreign currency. Currency risk may also entail some degree of liquidity risk, particularly in emerging market currencies.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Debt Securities Risk:</b> Debt securities are affected by many factors, including prevailing interest rates, market conditions and market liquidity. Volatility of below investment grade debt securities (including loans), may be relatively greater than for investment grade securities.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Derivatives Risk: </b>Derivatives can be complex instruments, may experience sudden and unpredictable changes in price or liquidity and may be difficult to value, sell or unwind. The value of derivatives is based on the value of other securities or indexes and the fund may not hold the security or index on which the value of a derivative is based. Derivatives can also create investment exposure that exceeds the initial amount invested (known as leverage risk) &#8212; consequently, derivatives may experience very large swings in value. The use of derivatives may result in the fund losing more money than it would have lost if it had invested directly in the security or index. Derivative transactions may also involve a counterparty. Such transactions are subject to the credit risk and/or the ability of the counterparty to perform in accordance with the terms of the transaction.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Emerging Markets Risk: </b>Investments in or exposure to investments in emerging markets, such as those in Latin America, Asia, the Middle East, Eastern Europe and Africa, may be riskier than investments in or exposure to investments in U.S. and certain developed markets for many reasons, including smaller market capitalizations, greater price volatility, less liquidity, political and economic instability, less governmental regulation of the financial industry and markets, and less stringent financial reporting and accounting standards and controls. </li></ul><ul type="square"><li style="margin-left:-20px"><b>Equity Securities Risk: </b>Stock markets are volatile. The price of equity securities tends to go up or down in value, sometimes rapidly and unpredictably, in response to many factors, which may be due to the particular issuer, its industry or broader economic or market events. </li></ul><ul type="square"><li style="margin-left:-20px"><b>Foreign Markets Risk: </b>Exposure to foreign markets through issuers can involve additional risks relating to market, economic, political, regulatory, geopolitical, or other conditions. These factors can make foreign investments more volatile and less liquid than U.S. investments. In addition, foreign markets can react differently to these conditions than the U.S. market. </li></ul><ul type="square"><li style="margin-left:-20px"><b>Forward Commitments Risk: </b>Securities or currencies whose terms are defined on a date in the future or transactions that are scheduled to settle on a date in the future (beyond usual and customary settlement), called forward commitments, as well as when-issued securities, are subject to risk of default or bankruptcy of the counterparty. In forward commitment or when-issued transactions, if the counterparty fails to consummate the transaction, the fund may miss the opportunity of obtaining a price or yield considered to be advantageous.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Geographic Concentration Risk: </b>Concentrating investments in a single country, a limited number of countries, or a particular geographic region makes the fund more susceptible to adverse economic, political, social, regulatory and other developments in that country, countries or region.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Growth Companies Risk: </b>Growth companies have the potential for above average or rapid growth but may give the fund a higher risk of price volatility than investments in "undervalued" companies. </li></ul><ul type="square"><li style="margin-left:-20px"><b>Interest Rate Risk: </b>Values of debt securities fluctuate as interest rates change. Debt securities with longer durations or fixed interest rates tend to be more sensitive to changes in interest rates, making them generally more volatile than debt securities with shorter durations or floating or adjustable interest rates. </li></ul><ul type="square"><li style="margin-left:-20px"><b>Issuer Risk:</b> The value of a security or instrument may decline for reasons directly related to the issuer, such as management, performance, financial leverage and reduced demand for the issuer's goods or services. </li></ul><ul type="square"><li style="margin-left:-20px"><b>Large-Capitalization Companies Risk: </b>Large-capitalization companies tend to have more stable prices than small- or mid-capitalization companies, but are still subject to the risks of equity securities. In exchange for this potentially lower risk, the fund's value may not rise as much as the value of a fund that emphasizes companies with smaller market capitalizations. </li></ul><ul type="square"><li style="margin-left:-20px"><b>Leverage Risk: </b>Leverage is investment exposure which exceeds the initial amount invested. The loss on a leveraged investment may far exceed the fund's principal amount invested. Leverage can magnify the fund's gains and losses and therefore increase its volatility. The fund is required to segregate liquid assets or otherwise cover its obligation created by an investment that is leveraged. The use of leverage may result in the portfolio having to liquidate fund holdings when it may not be advantageous to do so in order to satisfy its obligation or to meet segregation requirements. </li></ul><ul type="square"><li style="margin-left:-20px"><b>Liquidity Risk: </b>Liquidity is the ability to sell securities or other investments within a reasonable amount of time at approximately the price at which the fund has valued the securities or other investments, which relies on the willingness of market participants to buy and sell securities. Certain investments may be difficult to purchase and sell, particularly during adverse market conditions, because there is a limited market for the investment or there are restrictions on resale. If the fund holds illiquid securities, it may be unable to take advantage of market opportunities or it may be forced to sell other, more desirable, liquid securities or sell illiquid securities at a loss if it is required to raise cash to conduct its operations.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Market and Regulatory Risk: </b>Events in the financial markets and in the economy may cause volatility and uncertainty and may affect performance. Events in one market may adversely impact other markets. Future events may impact the fund in unforeseen ways. Traditionally liquid investments may experience periods of diminished liquidity. Governmental and regulatory actions may impair fund management and have unexpected consequences on particular markets, strategies, or investments.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Mid-Capitalization Companies Risk: </b>Mid-capitalization companies may be riskier and more susceptible to price swings than larger companies. Mid-capitalization companies may have a shorter history of operations, a more limited ability to raise capital, may have inexperienced management and limited product lines, and more speculative prospects for future growth or sustained earnings or market share than larger, more established companies. </li></ul><ul type="square"><li style="margin-left:-20px"><b>Price Volatility Risk: </b>The market value of the fund's investments will go up or down, sometimes rapidly or unpredictably, or may fail to rise, as a result of market conditions or for reasons specific to a particular issuer. The volatility of investments in emerging market countries may be greater than for investments in U.S. and certain developed markets. </li></ul><ul type="square"><li style="margin-left:-20px"><b>Small-Capitalization Companies Risk: </b>Small-capitalization companies may be riskier, less liquid and more susceptible to price swings than larger companies. Small-capitalization companies, particularly those in their developmental stages, may have a shorter history of operations, a more limited ability to raise capital, may have inexperienced management and limited product lines, and more speculative prospects for future growth or sustained earnings or market share than larger more established companies.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Small Number of Holdings Risk: </b>A fund with a small number of holdings may have greater exposure to those holdings which could increase potential price volatility compared to portfolios with a greater number of holdings.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Value Companies Risk: </b>Value companies are those that are thought to be undervalued and that a company's stock is trading for less than its intrinsic value. There is a risk that the determination that a stock is undervalued is not correct or is not recognized in the market.</li></ul> The investment adviser has contractually agreed to limit certain "fund operating expenses" incurred by the fund that exceed an annual rate of 0.15% through 6/30/2015, and 0.30% from 7/1/2015 through 6/30/2022 for Class A, B, C and R shares; 0.20% through 12/31/2015, and 0.30% from 1/1/2016 through 6/30/2023 for Advisor Class shares. The agreement will terminate: (i) if the investment advisory agreement is terminated, or (ii) upon ninety days' prior written notice by the Pacific Life Funds. The investment adviser may recoup amounts reimbursed in future periods, not to exceed 3 years from the end of the fiscal year in which the reimbursement took place, provided that the recoupment would not cause the fund to exceed the expense cap. <b>Fund performance</b> 0.0752 The bar chart and table below provide some indication of the risks of investing in the fund by showing changes in the performance of the fund from year-to-year and by showing how the fund's returns compare to four broad-based benchmark indexes, which provide broad measures of market performance and correspond to four asset classes (domestic equity, international equity, fixed income and cash equivalents) that may be allocated to by the fund. The bar chart shows the performance of the fund's Class A shares. The fund's returns are also compared to its composite benchmark, which is comprised of up to the four broad-based indexes shown based on the target allocations for the fund that were in effect through the periods shown. The fund's Advisor Class shares do not yet have a full calendar year of performance and are not included in the table below.<br/><br/>Past performance (before and after taxes) is not necessarily an indication of how the fund will perform in the future. Performance reflects expense limitations that were in effect during the periods presented. Sales loads are not reflected in the chart below. If these amounts were reflected, returns would be lower. Updated performance information may be obtained at our website: www.mutualfunds.pacificlife.com/mfc/home/performance.html, or by calling customer service at (800) 722-2333 (select Option 2). You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Pacific Life Funds. <b>Year by year total return (%)</b><br/>as of December 31 each year <b>Class A return for the period 1/1/12 through 3/31/12: </b>12.55%<br/><br/><b>Best and worst quarterly performance reflected with the bar chart:</b> Q2 2009: 20.61%; Q4 2008: (23.72%) 50000 <b>Average annual total returns </b><br/>For the periods ended December 31, 2011 As with any mutual fund, the value of the fund's investments, and therefore the value of your shares, may go up or down. Accordingly, you could lose money. The bar chart and table below provide some indication of the risks of investing in the fund by showing changes in the performance of the fund from year-to-year and by showing how the fund's returns compare to four broad-based benchmark indexes, which provide broad measures of market performance and correspond to four asset classes (domestic equity, international equity, fixed income and cash equivalents) that may be allocated to by the fund. The fund's returns are also compared to its composite benchmark, which is comprised of up to the four broad-based indexes shown based on the target allocations for the fund that were in effect through the periods shown. The after-tax returns (a) are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes; (b) are shown for Class A shares only and will vary for other classes; and (c) are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. In some instances, the return after taxes on distributions and sale of shares may be greater than the return before taxes because the investor is assumed to be able to use the capital loss of the sale of fund shares to offset other taxable capital gains. (800) 722-2333 (select Option 2) 0.0028 0.0028 0.0028 0.0028 www.mutualfunds.pacificlife.com/mfc/home/performance.html 0.0028 Past performance (before and after taxes) is not necessarily an indication of how the fund will perform in the future. -0.0013 -0.0013 -0.0013 -0.0013 -0.0008 The after-tax returns (a) are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes; (c) are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. (b) are shown for Class A shares only and will vary for other classes; and In some instances, the return after taxes on distributions and sale of shares may be greater than the return before taxes because the investor is assumed to be able to use the capital loss of the sale of fund shares to offset other taxable capital gains. <b>Average annual total returns</b><br/>For the periods ended December 31, 2011 The after-tax returns (a) are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes; (b) are shown for Class A shares only and will vary for other classes; and (c) are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. In some instances, the return after taxes on distributions and sale of shares may be greater than the return before taxes because the investor is assumed to be able to use the capital loss of the sale of fund shares to offset other taxable capital gains. 0 0.05 0.01 0 0 674 707 307 157 111 936 640 1040 486 347 1247 1327 1127 869 619 2125 2280 2471 1398 1942 As with any mutual fund, the value of the fund's investments, and therefore the value of your shares, may go up or down. Accordingly, you could lose money. The fund may be affected by the following principal risks, among other non-principal risks:<ul type="square"><li style="margin-left:-20px"><strong>Asset Allocation Fund of Funds Risk: </strong>Typically, the fund of funds is exposed to the same risks as the Underlying Funds in direct proportion to the allocation of assets among those portfolios. Allocations among the Underlying Funds are determined using an asset allocation process, which seeks to optimize returns by allocating among different asset classes given various levels of risk tolerance. The theory behind asset allocation is that diversification among asset classes can help reduce volatility over the long-term, which assumes that asset classes may not move in tandem and that positive returns in one or more classes will help offset negative returns in other asset classes, although you still may lose money and/or experience volatility, particularly during periods of broad market declines. Market and asset class performance may differ in the future from the historical performance and from the assumptions used to develop the allocations. There's a risk that you could achieve better returns by investing in an individual portfolio or portfolios representing a single asset class rather than using asset allocation.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Conflicts of Interest Risk:</strong> PLFA may be subject to competing interests that have the potential to influence its investment decisions for the fund. For example, PLFA may be influenced by its view of the best interests of Underlying Funds, such as a view that an Underlying Fund may benefit from additional assets or could be harmed by redemptions.</li></ul><strong>Principal risks from holdings in Underlying Funds</strong><ul type="square"><li style="margin-left:-20px"><strong>Active Management Risk: </strong>There is no guarantee that the manager's principal investment strategies and techniques, as well as particular investment decisions, will achieve the fund's investment goal, which could have an adverse impact on the fund's performance generally, relative to other funds with similar investment goals or relative to its benchmark.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Credit Risk: </strong>An issuer or guarantor of a debt instrument might be unable or unwilling to meet its financial obligations.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Currency Risk: </strong>Securities denominated in foreign currencies may be affected by changes in rates of exchange between those currencies and the U.S. dollar. Currency exchange rates may be volatile and may be affected by, among other factors, the general economic conditions of a country, the actions of the U.S. and foreign governments or central banks, the imposition of currency controls, and speculation. A decline in the value of a foreign currency versus the U.S. dollar reduces the value in U.S. dollars of investments denominated in that foreign currency. Currency risk may also entail some degree of liquidity risk, particularly in emerging market currencies.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Debt Securities Risk:</strong> Debt securities are affected by many factors, including prevailing interest rates, market conditions and market liquidity. Volatility of below investment grade debt securities (including loans), may be relatively greater than for investment grade securities.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Derivatives Risk: </strong>Derivatives can be complex instruments, may experience sudden and unpredictable changes in price or liquidity and may be difficult to value, sell or unwind. The value of derivatives is based on the value of other securities or indexes and the fund may not hold the security or index on which the value of a derivative is based. Derivatives can also create investment exposure that exceeds the initial amount invested (known as leverage risk) &#8212; consequently, derivatives may experience very large swings in value. The use of derivatives may result in the fund losing more money than it would have lost if it had invested directly in the security or index. Derivative transactions may also involve a counterparty. Such transactions are subject to the credit risk and/or the ability of the counterparty to perform in accordance with the terms of the transaction.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Emerging Markets Risk: </strong>Investments in or exposure to investments in emerging markets, such as those in Latin America, Asia, the Middle East, Eastern Europe and Africa, may be riskier than investments in or exposure to investments in U.S. and certain developed markets for many reasons, including smaller market capitalizations, greater price volatility, less liquidity, political and economic instability, less governmental regulation of the financial industry and markets, and less stringent financial reporting and accounting standards and controls.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Equity Securities Risk: </strong>Stock markets are volatile. The price of equity securities tends to go up or down in value, sometimes rapidly and unpredictably, in response to many factors, which may be due to the particular issuer, its industry or broader economic or market events.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Foreign Markets Risk: </strong>Exposure to foreign markets through issuers can involve additional risks relating to market, economic, political, regulatory, geopolitical, or other conditions. These factors can make foreign investments more volatile and less liquid than U.S. investments. In addition, foreign markets can react differently to these conditions than the U.S. market.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Forward Commitments Risk: </strong>Securities or currencies whose terms are defined on a date in the future or transactions that are scheduled to settle on a date in the future (beyond usual and customary settlement), called forward commitments, as well as when-issued securities, are subject to risk of default or bankruptcy of the counterparty. In forward commitment or when-issued transactions, if the counterparty fails to consummate the transaction, the fund may miss the opportunity of obtaining a price or yield considered to be advantageous.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Geographic Concentration Risk: </strong>Concentrating investments in a single country, a limited number of countries, or a particular geographic region makes the fund more susceptible to adverse economic, political, social, regulatory and other developments in that country, countries or region.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Growth Companies Risk: </strong>Growth companies have the potential for above average or rapid growth but may give the fund a higher risk of price volatility than investments in "undervalued" companies.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Interest Rate Risk: </strong>Values of debt securities fluctuate as interest rates change. Debt securities with longer durations or fixed interest rates tend to be more sensitive to changes in interest rates, making them generally more volatile than debt securities with shorter durations or floating or adjustable interest rates.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Issuer Risk:</strong> The value of a security or instrument may decline for reasons directly related to the issuer, such as management, performance, financial leverage and reduced demand for the issuer's goods or services.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Large-Capitalization Companies Risk: </strong>Large-capitalization companies tend to have more stable prices than small- or mid-capitalization companies, but are still subject to the risks of equity securities. In exchange for this potentially lower risk, the fund's value may not rise as much as the value of a fund that emphasizes companies with smaller market capitalizations.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Leverage Risk: </strong>Leverage is investment exposure which exceeds the initial amount invested. The loss on a leveraged investment may far exceed the fund's principal amount invested. Leverage can magnify the fund's gains and losses and therefore increase its volatility. The fund is required to segregate liquid assets or otherwise cover its obligation created by an investment that is leveraged. The use of leverage may result in the portfolio having to liquidate fund holdings when it may not be advantageous to do so in order to satisfy its obligation or to meet segregation requirements.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Liquidity Risk: </strong>Liquidity is the ability to sell securities or other investments within a reasonable amount of time at approximately the price at which the fund has valued the securities or other investments, which relies on the willingness of market participants to buy and sell securities. Certain investments may be difficult to purchase and sell, particularly during adverse market conditions, because there is a limited market for the investment or there are restrictions on resale. If the fund holds illiquid securities, it may be unable to take advantage of market opportunities or it may be forced to sell other, more desirable, liquid securities or sell illiquid securities at a loss if it is required to raise cash to conduct its operations.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Market and Regulatory Risk: </strong>Events in the financial markets and in the economy may cause volatility and uncertainty and may affect performance. Events in one market may adversely impact other markets. Future events may impact the fund in unforeseen ways. Traditionally liquid investments may experience periods of diminished liquidity. Governmental and regulatory actions may impair fund management and have unexpected consequences on particular markets, strategies, or investments.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Mid-Capitalization Companies Risk: </strong>Mid-capitalization companies may be riskier and more susceptible to price swings than larger companies. Mid-capitalization companies may have a shorter history of operations, a more limited ability to raise capital, may have inexperienced management and limited product lines, and more speculative prospects for future growth or sustained earnings or market share than larger, more established companies.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Mortgage-Related and Other Asset-Backed Securities Risk: </strong>Mortgage-related and other asset-backed securities are subject to certain other risks. The value of these securities will be influenced by the factors affecting the housing market and the market for the assets underlying such securities. As a result, during periods of declining asset value, difficult or frozen credit markets, swings in interest rates, or deteriorating economic conditions, mortgage-related and asset-backed securities may decline in value, face valuation difficulties, become more volatile and/or become illiquid. These securities are also subject to extension risk, where issuers may pay principal later than expected, and prepayment risk, where issuers may pay principal more quickly than expected, causing proceeds to be reinvested at lower prevailing interest rates.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Price Volatility Risk: </strong>The market value of the fund's investments will go up or down, sometimes rapidly or unpredictably, or may fail to rise, as a result of market conditions or for reasons specific to a particular issuer. The volatility of investments in emerging market countries may be greater than for investments in U.S. and certain developed markets.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Short Sale Risk: </strong>A short sale involves the risk that the price at which the fund purchases a security to replace the borrowed security may be higher than the price that the fund sold the security, resulting in a loss to the fund. Such loss is theoretically unlimited. Short sales also involve certain costs and may expose the fund to <em>leverage risk</em>.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Small-Capitalization Companies Risk: </strong>Small-capitalization companies may be riskier, less liquid and more susceptible to price swings than larger companies. Small-capitalization companies, particularly those in their developmental stages, may have a shorter history of operations, a more limited ability to raise capital, may have inexperienced management and limited product lines, and more speculative prospects for future growth or sustained earnings or market share than larger more established companies.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Small Number of Holdings Risk: </strong>A fund with a small number of holdings may have greater exposure to those holdings which could increase potential price volatility compared to portfolios with a greater number of holdings.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>U.S. Government Securities Risk: </strong>Not all U.S. government securities are backed or guaranteed by the U.S. government and different U.S. government securities are subject to varying degrees of credit risk. There is risk that the U.S. government will not provide financial support to U.S. government agencies, instrumentalities or sponsored enterprises if it is not obligated to do so by law.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Value Companies Risk: </strong>Value companies are those that are thought to be undervalued and that a company's stock is trading for less than its intrinsic value. There is a risk that the determination that a stock is undervalued is not correct or is not recognized in the market.</li></ul> 674 207 207 157 111 936 640 640 486 347 1247 1127 1127 869 619 <strong>Average annual total returns </strong><br/>For the periods ended December 31, 2011 2125 2280 2471 1942 1398 <strong>PL Portfolio Optimization Moderate Fund</strong> <strong>Investment goal</strong> This fund seeks long-term growth of capital and low to moderate income. <strong>Class A return for the period 1/1/12 through 3/31/12: </strong>8.78%<br/><br/><strong>Best and worst quarterly performance reflected within the bar chart:</strong> Q2 2009: 14.47%; Q4 2008: (14.29%) 0.0574 0.0405 0.0819 0.0664 -0.1876 0.2228 0.0984 0.0112 The fund seeks to achieve its investment goal through a strategy of allocating its assets to diverse investment styles within the two major asset classes of debt and equity securities. Under normal market conditions, the fund maintains a balance between the two major asset classes of debt and equity by allocating its assets in the following target amounts: <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"><tr style="FONT-SIZE: 1pt" valign="bottom"><td width="79%"></td><td width="3%"></td><td width="1%" align="right"></td><td width="4%" align="right"></td><td width="1%" align="left"></td><td width="4%"></td><td width="1%" align="right"></td><td width="6%" align="right"></td><td width="1%" align="left"></td></tr><tr valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center"></td><td></td><td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>Asset Class</b> </td><td></td></tr><tr valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="left"><b>Fund</b> </td><td></td><td valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Debt</b> </td><td></td><td></td><td valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Equity</b> </td><td></td></tr><tr style="FONT-SIZE: 2pt" valign="bottom" align="center"><td valign="bottom" colspan="8" align="center"><div style="BORDER-BOTTOM: #000000 1pt solid; WIDTH: 100%; MARGIN-LEFT: 0%; FONT-SIZE: 0pt"></div></td><td></td></tr><tr valign="bottom"><td valign="bottom" align="left"><div style="TEXT-INDENT: -8pt; MARGIN-LEFT: 8pt">PL Portfolio Optimization Conservative Fund</div></td><td></td><td valign="bottom" nowrap="nowrap" align="left"></td><td valign="bottom" nowrap="nowrap" align="right">80 </td><td valign="bottom" nowrap="nowrap" align="left">% </td><td></td><td valign="bottom" nowrap="nowrap" align="left"></td><td valign="bottom" nowrap="nowrap" align="right">20 </td><td valign="bottom" nowrap="nowrap" align="left">% </td></tr><tr style="FONT-SIZE: 2pt" valign="bottom"><td valign="bottom" colspan="9"><div style="BORDER-BOTTOM: #000000 1pt solid; WIDTH: 100%; MARGIN-LEFT: 0%; FONT-SIZE: 0pt"></div></td></tr></table><br/>The fund is a "fund of funds" that invests primarily in a combination of other mutual fund portfolios of the Pacific Life Funds (Underlying Funds). Within the broad asset classes of debt and equity, the fund diversifies its holdings by investing in Underlying Funds that represent a variety of investment styles and security types. The portion of the fund invested in debt securities may be allocated to Underlying Funds that, in turn, invest in debt securities that may include, among others:<ul type="square"><li style="margin-left:-20px">Investment grade debt securities, which may include U.S. Government securities, corporate bonds, mortgage-related securities, and other asset-backed securities;</li></ul><ul type="square"><li style="margin-left:-20px">International debt securities, which may include emerging market debt;</li></ul><ul type="square"><li style="margin-left:-20px">Debt instruments of varying duration;</li></ul><ul type="square"><li style="margin-left:-20px">High-yield bonds;</li></ul><ul type="square"><li style="margin-left:-20px">Floating rate loans;</li></ul><ul type="square"><li style="margin-left:-20px">Inflation-indexed bonds; and</li></ul><ul type="square"><li style="margin-left:-20px">Money market instruments. </li></ul>The portion of the fund invested in equity securities may be allocated to Underlying Funds that, in turn, invest in equity securities that may include, among others:<ul type="square"><li style="margin-left:-20px">Growth, value and "core" stocks;</li></ul><ul type="square"><li style="margin-left:-20px">Market capitalizations that represent large-, mid- and small-sized companies;</li></ul><ul type="square"><li style="margin-left:-20px">Stocks of companies with a history of paying dividends;</li></ul><ul type="square"><li style="margin-left:-20px">Sector funds;</li></ul><ul type="square"><li style="margin-left:-20px">Domestic and international stocks, including emerging market stocks. </li></ul>The fund may also, at any time, invest in Underlying Funds that hold other debt or equity securities. Underlying Funds may seek investment exposure through direct investments in securities or through derivatives. The fund may invest a significant portion of its assets in any single Underlying Fund. The fund will be as fully invested, as practical, although it may maintain liquidity reserves to meet redemption requests. <br/><br/>The asset class targets shown above are targets and the actual amounts invested in the two major asset classes may vary because of market movements or tactical decisions made by the investment adviser (PLFA); however, the fund's assets allocated to the two major asset classes are not normally expected to vary by more than 10% from the asset class target amounts. When determining which Underlying Fund corresponds to the selected investment styles and security types, PLFA takes into account that an Underlying Fund may utilize more than one investment style and may invest in more than one type of security. <br/><br/>A two-step asset allocation process is used to construct the funds. The process begins by developing the fund's target blend between the two broad asset classes and underlying investment styles within each broad asset class. This is then followed by determining target allocations among the various Underlying Funds in order to produce the desired risk/return profile. PLFA's allocations among the Underlying Funds are determined using this asset allocation process which seeks to optimize returns for the fund by allocating among different asset classes given the desired risk/return profile of the fund. Periodically, PLFA will re-evaluate the fund's allocations to the various Underlying Funds and may update the fund's target allocations to such Underlying Funds at that time. PLFA may change the target allocations among asset classes and investment styles and/or the allocations to the Underlying Funds from time to time, based on PLFA's assessment of market conditions or other factors. <br/><br/>When investing purchase proceeds and meeting redemptions for the fund, PLFA may use a methodology to identify assets to be purchased or sold by the fund that factors in the target allocations and the current allocations of the fund. This methodology is intended to help maintain target allocations, although there is no assurance that the fund will maintain its target allocations using this methodology.<br/><br/>For additional information about the fund's investment strategies, the names and investment strategies of the Underlying Funds in which the fund may invest and where to obtain information about the fund's investments in the Underlying Funds as of the most recent month end, please see the Additional Information About Investments, Strategies and Risks section in this prospectus. 2012-12-18 <strong>Principal risks</strong> 2003-12-31 2003-12-31 2003-12-31 2003-12-31 2003-12-31 2005-09-30 2003-12-31 2003-12-31 2003-12-31 2003-12-31 2003-12-31 -0.0446 -0.0502 -0.0278 -0.0462 -0.0072 0.0079 0.0784 0.0211 -0.1214 0.001 0.0381 -0.0025 -0.0472 0.0149 0.0341 0.065 0.0306 0.0256 0.0219 0.0128 0.0111 0.734 0.0215 0.0357 0.0265 0.026 0.0363 0.0364 0.0398 0.0544 0.0363 0.0387 0.0208 0.049 0.0027 0.0027 0.0027 0.0027 0.0027 -0.0012 -0.0012 -0.0012 -0.0012 -0.0007 As with any mutual fund, the value of the fund's investments, and therefore the value of your shares, may go up or down. Accordingly, you could lose money. The fund may be affected by the following principal risks, among other non-principal risks:<ul type="square"><li style="margin-left:-20px"><strong>Asset Allocation Fund of Funds Risk: </strong>Typically, the fund of funds is exposed to the same risks as the Underlying Funds in direct proportion to the allocation of assets among those portfolios. Allocations among the Underlying Funds are determined using an asset allocation process, which seeks to optimize returns by allocating among different asset classes given various levels of risk tolerance. The theory behind asset allocation is that diversification among asset classes can help reduce volatility over the long-term, which assumes that asset classes may not move in tandem and that positive returns in one or more classes will help offset negative returns in other asset classes, although you still may lose money and/or experience volatility, particularly during periods of broad market declines. Market and asset class performance may differ in the future from the historical performance and from the assumptions used to develop the allocations. There's a risk that you could achieve better returns by investing in an individual portfolio or portfolios representing a single asset class rather than using asset allocation.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Conflicts of Interest Risk:</strong> PLFA may be subject to competing interests that have the potential to influence its investment decisions for the fund. For example, PLFA may be influenced by its view of the best interests of Underlying Funds, such as a view that an Underlying Fund may benefit from additional assets or could be harmed by redemptions. </li></ul><strong>Principal risks from holdings in Underlying Funds</strong> <ul type="square"><li style="margin-left:-20px"><strong>Active Management Risk: </strong>There is no guarantee that the manager's principal investment strategies and techniques, as well as particular investment decisions, will achieve the fund's investment goal, which could have an adverse impact on the fund's performance generally, relative to other funds with similar investment goals or relative to its benchmark.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Credit Risk: </strong>An issuer or guarantor of a debt instrument might be unable or unwilling to meet its financial obligations.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Currency Risk: </strong>Securities denominated in foreign currencies may be affected by changes in rates of exchange between those currencies and the U.S. dollar. Currency exchange rates may be volatile and may be affected by, among other factors, the general economic conditions of a country, the actions of the U.S. and foreign governments or central banks, the imposition of currency controls, and speculation. A decline in the value of a foreign currency versus the U.S. dollar reduces the value in U.S. dollars of investments denominated in that foreign currency. Currency risk may also entail some degree of liquidity risk, particularly in emerging market currencies.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Debt Securities Risk:</strong> Debt securities are affected by many factors, including prevailing interest rates, market conditions and market liquidity. Volatility of below investment grade debt securities (including loans), may be relatively greater than for investment grade securities.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Derivatives Risk: </strong>Derivatives can be complex instruments, may experience sudden and unpredictable changes in price or liquidity and may be difficult to value, sell or unwind. The value of derivatives is based on the value of other securities or indexes and the fund may not hold the security or index on which the value of a derivative is based. Derivatives can also create investment exposure that exceeds the initial amount invested (known as leverage risk) &#151; consequently, derivatives may experience very large swings in value. The use of derivatives may result in the fund losing more money than it would have lost if it had invested directly in the security or index. Derivative transactions may also involve a counterparty. Such transactions are subject to the credit risk and/or the ability of the counterparty to perform in accordance with the terms of the transaction. </li></ul><ul type="square"><li style="margin-left:-20px"><strong>Emerging Markets Risk: </strong>Investments in or exposure to investments in emerging markets, such as those in Latin America, Asia, the Middle East, Eastern Europe and Africa, may be riskier than investments in or exposure to investments in U.S. and certain developed markets for many reasons, including smaller market capitalizations, greater price volatility, less liquidity, political and economic instability, less governmental regulation of the financial industry and markets, and less stringent financial reporting and accounting standards and controls.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Equity Securities Risk: </strong>Stock markets are volatile. The price of equity securities tends to go up or down in value, sometimes rapidly and unpredictably, in response to many factors, which may be due to the particular issuer, its industry or broader economic or market events.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Foreign Markets Risk: </strong>Exposure to foreign markets through issuers can involve additional risks relating to market, economic, political, regulatory, geopolitical, or other conditions. These factors can make foreign investments more volatile and less liquid than U.S. investments. In addition, foreign markets can react differently to these conditions than the U.S. market. </li></ul><ul type="square"><li style="margin-left:-20px"><strong>Forward Commitments Risk: </strong>Securities or currencies whose terms are defined on a date in the future or transactions that are scheduled to settle on a date in the future (beyond usual and customary settlement), called forward commitments, as well as when-issued securities, are subject to risk of default or bankruptcy of the counterparty. In forward commitment or when-issued transactions, if the counterparty fails to consummate the transaction, the fund may miss the opportunity of obtaining a price or yield considered to be advantageous.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Geographic Concentration Risk: </strong>Concentrating investments in a single country, a limited number of countries, or a particular geographic region makes the fund more susceptible to adverse economic, political, social, regulatory and other developments in that country, countries or region.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>High-Yield or "Junk" Securities Risk: </strong>High yield securities are typically issued by companies that are highly leveraged, less creditworthy or financially distressed and are considered to be mostly speculative in nature (high risk), potentially less liquid, and subject to a greater risk of loss, that is they are more likely to default than higher rated securities.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Inflation-Indexed Debt Securities Risk: </strong>The principal values of inflation-indexed debt securities tend to increase when inflation rises and decrease when inflation falls. </li></ul><ul type="square"><li style="margin-left:-20px"><strong>Interest Rate Risk: </strong>Values of debt securities fluctuate as interest rates change. Debt securities with longer durations or fixed interest rates tend to be more sensitive to changes in interest rates, making them generally more volatile than debt securities with shorter durations or floating or adjustable interest rates.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Issuer Risk:</strong> The value of a security or instrument may decline for reasons directly related to the issuer, such as management, performance, financial leverage and reduced demand for the issuer's goods or services.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Large-Capitalization Companies Risk: </strong>Large-capitalization companies tend to have more stable prices than small- or mid-capitalization companies, but are still subject to the risks of equity securities. In exchange for this potentially lower risk, the fund's value may not rise as much as the value of a fund that emphasizes companies with smaller market capitalizations.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Leverage Risk: </strong>Leverage is investment exposure which exceeds the initial amount invested. The loss on a leveraged investment may far exceed the fund's principal amount invested. Leverage can magnify the fund's gains and losses and therefore increase its volatility. The fund is required to segregate liquid assets or otherwise cover its obligation created by an investment that is leveraged. The use of leverage may result in the portfolio having to liquidate fund holdings when it may not be advantageous to do so in order to satisfy its obligation or to meet segregation requirements.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Liquidity Risk: </strong>Liquidity is the ability to sell securities or other investments within a reasonable amount of time at approximately the price at which the fund has valued the securities or other investments, which relies on the willingness of market participants to buy and sell securities. Certain investments may be difficult to purchase and sell, particularly during adverse market conditions, because there is a limited market for the investment or there are restrictions on resale. If the fund holds illiquid securities, it may be unable to take advantage of market opportunities or it may be forced to sell other, more desirable, liquid securities or sell illiquid securities at a loss if it is required to raise cash to conduct its operations.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Market and Regulatory Risk: </strong>Events in the financial markets and in the economy may cause volatility and uncertainty and may affect performance. Events in one market may adversely impact other markets. Future events may impact the fund in unforeseen ways. Traditionally liquid investments may experience periods of diminished liquidity. Governmental and regulatory actions may impair fund management and have unexpected consequences on particular markets, strategies, or investments.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Mid-Capitalization Companies Risk: </strong>Mid-capitalization companies may be riskier and more susceptible to price swings than larger companies. Mid-capitalization companies may have a shorter history of operations, a more limited ability to raise capital, may have inexperienced management and limited product lines, and more speculative prospects for future growth or sustained earnings or market share than larger, more established companies.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Mortgage-Related and Other Asset-Backed Securities Risk: </strong>Mortgage-related and other asset-backed securities are subject to certain other risks. The value of these securities will be influenced by the factors affecting the housing market and the market for the assets underlying such securities. As a result, during periods of declining asset value, difficult or frozen credit markets, swings in interest rates, or deteriorating economic conditions, mortgage-related and asset-backed securities may decline in value, face valuation difficulties, become more volatile and/or become illiquid. These securities are also subject to extension risk, where issuers may pay principal later than expected, and prepayment risk, where issuers may pay principal more quickly than expected, causing proceeds to be reinvested at lower prevailing interest rates. </li></ul><ul type="square"><li style="margin-left:-20px"><strong>Price Volatility Risk: </strong>The market value of the fund's investments will go up or down, sometimes rapidly or unpredictably, or may fail to rise, as a result of market conditions or for reasons specific to a particular issuer. The volatility of non-investment grade debt securities (including loans) may be greater than for investment grade securities. The volatility of investments in emerging market countries may be greater than for investments in U.S. and certain developed markets.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Short Sale Risk: </strong>A short sale involves the risk that the price at which the fund purchases a security to replace the borrowed security may be higher than the price that the fund sold the security, resulting in a loss to the fund. Such loss is theoretically unlimited. Short sales also involve certain costs and may expose the fund to leverage risk.</li></ul><ul type="square"><li style="margin-left:-20px"> <strong>U.S. Government Securities Risk: </strong>Not all U.S. government securities are backed or guaranteed by the U.S. government and different U.S. government securities are subject to varying degrees of credit risk. There is risk that the U.S. government will not provide financial support to U.S. government agencies, instrumentalities or sponsored enterprises if it is not obligated to do so by law.</li></ul><ul type="square"><li style="margin-left:-20px"><strong>Value Companies Risk: </strong>Value companies are those that are thought to be undervalued and that a company's stock is trading for less than its intrinsic value. There is a risk that the determination that a stock is undervalued is not correct or is not recognized in the market. </li></ul> <strong>Fund performance</strong> The bar chart and table below provide some indication of the risks of investing in the fund by showing changes in the performance of the fund from year-to-year and by showing how the fund's returns compare to four broad-based benchmark indexes, which provide broad measures of market performance and correspond to four asset classes (fixed income, domestic equity, international equity and cash equivalents) that may be allocated to by the fund. The bar chart shows the performance of the fund's Class A shares. The fund's returns are also compared to its composite benchmark, which is comprised of up to the four broad-based indexes shown based on the target allocation(s) for the fund that were in effect through the periods shown. The fund's Advisor Class shares do not yet have a full calendar year of performance and are not included in the table below. <br/><br/>Past performance (before and after taxes) is not necessarily an indication of how the fund will perform in the future. Performance reflects expense limitations that were in effect during the periods presented. Sales loads are not reflected in the chart below. If these amounts were reflected, returns would be lower. Updated performance information may be obtained at our website: www.mutualfunds.pacificlife.com/mfc/home/performance.html, or by calling customer service at (800) 722-2333 (select Option 2). <strong>Year by year total return (%)</strong><br/>as of December 31 each year <strong>Class A return for the period 1/1/12 through 3/31/12: </strong>4.14% <br/><br/><strong>Best and worst quarterly performance reflected within the bar chart:</strong> Q2 2009: 8.29%; Q3 2008: (4.95%) The investment adviser has contractually agreed to limit certain "fund operating expenses" incurred by the fund that exceed an annual rate of 0.15% through 6/30/2015, and 0.30% from 7/1/2015 through 6/30/2022 for Class A, B, C and R shares; 0.20% through 12/31/2015, and 0.30% from 1/1/2016 through 6/30/2023 for Advisor Class shares. The agreement will terminate: (i) if the investment advisory agreement is terminated, or (ii) upon ninety days' prior written notice by the Pacific Life Funds. The investment adviser may recoup amounts reimbursed in future periods, not to exceed 3 years from the end of the fiscal year in which the reimbursement took place, provided that the recoupment would not cause the fund to exceed the expense cap. "Other Expenses" for Advisor Class shares are based on estimated amounts for the current fiscal year. 0.0677 You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Pacific Life Funds. 50000 As with any mutual fund, the value of the fund's investments, and therefore the value of your shares, may go up or down. Accordingly, you could lose money. The bar chart and table below provide some indication of the risks of investing in the fund by showing changes in the performance of the fund from year-to-year and by showing how the fund's returns compare to four broad-based benchmark indexes, which provide broad measures of market performance and correspond to four asset classes (domestic equity, fixed income, international equity and cash equivalents) that may be allocated to by the fund. <b>Average annual total returns</b><br/>For the periods ended December 31, 2011 The fund's returns are also compared to its composite benchmark, which is comprised of up to the four broad-based indexes shown based on the target allocation(s) for the fund that were in effect through the periods shown. (800) 722-2333 (select Option 2) www.mutualfunds.pacificlife.com/mfc/home/performance.html The after-tax returns (a) are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes; (b) are shown for Class A shares only and will vary for other classes; and (c) are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. In some instances, the return after taxes on distributions and sale of shares may be greater than the return before taxes because the investor is assumed to be able to use the capital loss of the sale of fund shares to offset other taxable capital gains. Past performance (before and after taxes) is not necessarily an indication of how the fund will perform in the future. Sales loads are not reflected in the chart below. If these amounts were reflected, returns would be lower. The after-tax returns (a) are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes; (c) are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. (b) are shown for Class A shares only and will vary for other classes; and In some instances, the return after taxes on distributions and sale of shares may be greater than the return before taxes because the investor is assumed to be able to use the capital loss of the sale of fund shares to offset other taxable capital gains. The after-tax returns (a) are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes; (c) are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. (b) are shown for Class A shares only and will vary for other classes; and <b>Investment goal </b> This fund seeks current income and moderate growth of capital. <b>Fees and expenses</b> The table that follows describes the fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Pacific Life Funds. More information about these and other discounts is available from your financial professional and in the Overview of the Share Classes section in this prospectus. <strong>Shareholder Fees </strong>(fees paid directly from your investment) <b>Annual fund operating expenses </b>(expenses that you pay each year as a percentage of the value of your investment) <b>Portfolio turnover</b> The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in Annual fund operating expenses or in the Examples, affect the fund's performance. During the most recent fiscal year, the fund's turnover rate was 9.52% of the average value of the fund. <b>Examples</b> The examples below are intended to help you compare the cost of investing in the fund with the cost of investing in other funds of Pacific Life Funds or other mutual funds. Each example assumes that you invest $10,000 in the noted share class of the fund for the time periods indicated, that your investment has a 5% return each year, and that the fund's annual operating expenses remain as stated in the previous table throughout the periods shown, except for the expense caps, which are only reflected for the contractual period. Although your actual costs may be higher or lower, the Examples show what your costs would be based on these assumptions. <b>Principal investment strategies</b> The fund seeks to achieve its investment goal through a strategy of allocating its assets to diverse investment styles within the two major asset classes of debt and equity securities. Under normal market conditions, the fund maintains a balance between the two major asset classes of debt and equity by allocating its assets in the following target amounts: <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"><tr style="FONT-SIZE: 1pt" valign="bottom"><td width="79%"></td><td width="3%"></td><td width="1%" align="right"></td><td width="4%" align="right"></td><td width="1%" align="left"></td><td width="4%"></td><td width="1%" align="right"></td><td width="6%" align="right"></td><td width="1%" align="left"></td></tr><tr valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center"></td><td></td><td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>Asset Class</b> </td><td></td></tr><tr valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="left"><b>Fund</b> </td><td></td><td valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Debt</b> </td><td></td><td></td><td valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Equity</b> </td><td></td></tr><tr style="FONT-SIZE: 2pt" valign="bottom" align="center"><td valign="bottom" colspan="8" align="center"><div style="BORDER-BOTTOM: #000000 1pt solid; WIDTH: 100%; MARGIN-LEFT: 0%; FONT-SIZE: 0pt"></div></td><td></td></tr><tr valign="bottom"><td valign="bottom" align="left"><div style="TEXT-INDENT: -8pt; MARGIN-LEFT: 8pt">PL Portfolio Optimization Moderate-Conservative Fund </div></td><td></td><td valign="bottom" nowrap="nowrap" align="left"></td><td valign="bottom" nowrap="nowrap" align="right">60 </td><td valign="bottom" nowrap="nowrap" align="left">% </td><td></td><td valign="bottom" nowrap="nowrap" align="left"></td><td valign="bottom" nowrap="nowrap" align="right">40 </td><td valign="bottom" nowrap="nowrap" align="left">% </td></tr><tr style="FONT-SIZE: 2pt" valign="bottom"><td valign="bottom" colspan="9"><div style="BORDER-BOTTOM: #000000 1pt solid; WIDTH: 100%; MARGIN-LEFT: 0%; FONT-SIZE: 0pt"></div></td></tr></table><br/><br/>The fund is a "fund of funds" that invests primarily in a combination of other mutual fund portfolios of the Pacific Life Funds (Underlying Funds). Within the broad asset classes of debt and equity, the fund diversifies its holdings by investing in Underlying Funds that represent a variety of investment styles and security types. The portion of the fund invested in debt securities may be allocated to Underlying Funds that, in turn, invest in debt securities that may include, among others:<ul type="square"><li style="margin-left:-20px">Investment grade debt securities, which may include U.S. Government securities, corporate bonds, mortgage-related securities, and other asset-backed securities;</li></ul><ul type="square"><li style="margin-left:-20px">International debt securities, which may include emerging market debt;</li></ul><ul type="square"><li style="margin-left:-20px">Debt instruments of varying duration;</li></ul><ul type="square"><li style="margin-left:-20px">High-yield bonds;</li></ul><ul type="square"><li style="margin-left:-20px">Floating rate loans;</li></ul><ul type="square"><li style="margin-left:-20px">Inflation-indexed bonds; and</li></ul><ul type="square"><li style="margin-left:-20px">Money market instruments.</li></ul>The portion of the fund invested in equity securities may be allocated to Underlying Funds that, in turn, invest in equity securities that may include, among others:<ul type="square"><li style="margin-left:-20px">Growth, value and "core" stocks;</li></ul><ul type="square"><li style="margin-left:-20px">Market capitalizations that represent large-, mid- and small- sized companies;</li></ul><ul type="square"><li style="margin-left:-20px">Stocks of companies with a history of paying dividends;</li></ul><ul type="square"><li style="margin-left:-20px">Sector funds;</li></ul><ul type="square"><li style="margin-left:-20px">Domestic and international stocks, including emerging market stocks.</li></ul>The fund may also, at any time, invest in Underlying Funds that hold other debt or equity securities. Underlying Funds may seek investment exposure through direct investments in securities or through derivatives. The fund may invest a significant portion of its assets in any single Underlying Fund. The fund will be as fully invested, as practical, although it may maintain liquidity reserves to meet redemption requests.<br/><br/>The asset class targets shown above are targets and the actual amounts invested in the two major asset classes may vary because of market movements or tactical decisions made by the investment adviser (PLFA); however, the fund's assets allocated to the two major asset classes are not normally expected to vary by more than 10% from the asset class target amounts. When determining which Underlying Fund corresponds to the selected investment styles and security types, PLFA takes into account that an Underlying Fund may utilize more than one investment style and may invest in more than one type of security.<br/><br/>A two-step asset allocation process is used to construct the funds. The process begins by developing the fund's target blend between the two broad asset classes and underlying investment styles within each broad asset class. This is then followed by determining target allocations among the various Underlying Funds in order to produce the desired risk/return profile. PLFA's allocations among the Underlying Funds are determined using this asset allocation process which seeks to optimize returns for the fund by allocating among different asset classes given the desired risk/return profile of the fund. Periodically, PLFA will re-evaluate the fund's allocations to the various Underlying Funds and may update the fund's target allocations to such Underlying Funds at that time. PLFA may change the target allocations among asset classes and investment styles and/or the allocations to the Underlying Funds from time to time, based on PLFA's assessment of market conditions or other factors.<br/><br/>When investing purchase proceeds and meeting redemptions for the fund, PLFA may use a methodology to identify assets to be purchased or sold by the fund that factors in the target allocations and the current allocations of the fund. This methodology is intended to help maintain target allocations, although there is no assurance that the fund will maintain its target allocations using this methodology.<br/><br/>For additional information about the fund's investment strategies, the names and investment strategies of the Underlying Funds in which the fund may invest and where to obtain information about the fund's investments in the Underlying Funds as of the most recent month end, please see the Additional Information About Investments, Strategies and Risks section in this prospectus. <b>Principal risks</b> As with any mutual fund, the value of the fund's investments, and therefore the value of your shares, may go up or down. Accordingly, you could lose money. The fund may be affected by the following principal risks, among other non-principal risks:<ul type="square"><li style="margin-left:-20px"><b>Asset Allocation Fund of Funds Risk: </b>Typically, the fund of funds is exposed to the same risks as the Underlying Funds in direct proportion to the allocation of assets among those portfolios. Allocations among the Underlying Funds are determined using an asset allocation process, which seeks to optimize returns by allocating among different asset classes given various levels of risk tolerance. The theory behind asset allocation is that diversification among asset classes can help reduce volatility over the long-term, which assumes that asset classes may not move in tandem and that positive returns in one or more classes will help offset negative returns in other asset classes, although you still may lose money and/or experience volatility, particularly during periods of broad market declines. Market and asset class performance may differ in the future from the historical performance and from the assumptions used to develop the allocations. There's a risk that you could achieve better returns by investing in an individual portfolio or portfolios representing a single asset class rather than using asset allocation.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Conflicts of Interest Risk:</b> PLFA may be subject to competing interests that have the potential to influence its investment decisions for the fund. For example, PLFA may be influenced by its view of the best interests of Underlying Funds, such as a view that an Underlying Fund may benefit from additional assets or could be harmed by redemptions.</li></ul><b>Principal risks from holdings in Underlying Funds</b><ul type="square"><li style="margin-left:-20px"><b>Active Management Risk: </b>There is no guarantee that the manager's principal investment strategies and techniques, as well as particular investment decisions, will achieve the fund's investment goal, which could have an adverse impact on the fund's performance generally, relative to other funds with similar investment goals or relative to its benchmark.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Credit Risk: </b>An issuer or guarantor of a debt instrument might be unable or unwilling to meet its financial obligations.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Currency Risk: </b>Securities denominated in foreign currencies may be affected by changes in rates of exchange between those currencies and the U.S. dollar. Currency exchange rates may be volatile and may be affected by, among other factors, the general economic conditions of a country, the actions of the U.S. and foreign governments or central banks, the imposition of currency controls, and speculation. A decline in the value of a foreign currency versus the U.S. dollar reduces the value in U.S. dollars of investments denominated in that foreign currency. Currency risk may also entail some degree of liquidity risk, particularly in emerging market currencies.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Debt Securities Risk:</b> Debt securities are affected by many factors, including prevailing interest rates, market conditions and market liquidity. Volatility of below investment grade debt securities (including loans), may be relatively greater than for investment grade securities.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Derivatives Risk: </b>Derivatives can be complex instruments, may experience sudden and unpredictable changes in price or liquidity and may be difficult to value, sell or unwind. The value of derivatives is based on the value of other securities or indexes and the fund may not hold the security or index on which the value of a derivative is based. Derivatives can also create investment exposure that exceeds the initial amount invested (known as leverage risk) &#151; consequently, derivatives may experience very large swings in value. The use of derivatives may result in the fund losing more money than it would have lost if it had invested directly in the security or index. Derivative transactions may also involve a counterparty. Such transactions are subject to the credit risk and/or the ability of the counterparty to perform in accordance with the terms of the transaction.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Emerging Markets Risk: </b>Investments in or exposure to investments in emerging markets, such as those in Latin America, Asia, the Middle East, Eastern Europe and Africa, may be riskier than investments in or exposure to investments in U.S. and certain developed markets for many reasons, including smaller market capitalizations, greater price volatility, less liquidity, political and economic instability, less governmental regulation of the financial industry and markets, and less stringent financial reporting and accounting standards and controls. </li></ul><ul type="square"><li style="margin-left:-20px"><b>Equity Securities Risk: </b>Stock markets are volatile. The price of equity securities tends to go up or down in value, sometimes rapidly and unpredictably, in response to many factors, which may be due to the particular issuer, its industry or broader economic or market events.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Foreign Markets Risk: </b>Exposure to foreign markets through issuers can involve additional risks relating to market, economic, political, regulatory, geopolitical, or other conditions. These factors can make foreign investments more volatile and less liquid than U.S. investments. In addition, foreign markets can react differently to these conditions than the U.S. market.</li></ul><ul type="square"> <li style="margin-left:-20px"><b>Forward Commitments Risk: </b>Securities or currencies whose terms are defined on a date in the future or transactions that are scheduled to settle on a date in the future (beyond usual and customary settlement), called forward commitments, as well as when-issued securities, are subject to risk of default or bankruptcy of the counterparty. In forward commitment or when-issued transactions, if the counterparty fails to consummate the transaction, the fund may miss the opportunity of obtaining a price or yield considered to be advantageous.</li></ul> <ul type="square"> <li style="margin-left:-20px"><b>Geographic Concentration Risk: </b>Concentrating investments in a single country, a limited number of countries, or a particular geographic region makes the fund more susceptible to adverse economic, political, social, regulatory and other developments in that country, countries or region.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Growth Companies Risk: </b>Growth companies have the potential for above average or rapid growth but may give the fund a higher risk of price volatility than investments in "undervalued" companies.</li></ul><ul type="square"><li style="margin-left:-20px"><b>High-Yield or "Junk" Securities Risk: </b>High yield securities are typically issued by companies that are highly leveraged, less creditworthy or financially distressed and are considered to be mostly speculative in nature (high risk), potentially less liquid, and subject to a greater risk of loss, that is they are more likely to default than higher rated securities.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Inflation-Indexed Debt Securities Risk: </b>The principal values of inflation-indexed debt securities tend to increase when inflation rises and decrease when inflation falls.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Interest Rate Risk: </b>Values of debt securities fluctuate as interest rates change. Debt securities with longer durations or fixed interest rates tend to be more sensitive to changes in interest rates, making them generally more volatile than debt securities with shorter durations or floating or adjustable interest rates.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Issuer Risk:</b> The value of a security or instrument may decline for reasons directly related to the issuer, such as management, performance, financial leverage and reduced demand for the issuer's goods or services.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Large-Capitalization Companies Risk: </b>Large-capitalization companies tend to have more stable prices than small- or mid-capitalization companies, but are still subject to the risks of equity securities. In exchange for this potentially lower risk, the fund's value may not rise as much as the value of a fund that emphasizes companies with smaller market capitalizations.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Leverage Risk: </b>Leverage is investment exposure which exceeds the initial amount invested. The loss on a leveraged investment may far exceed the fund's principal amount invested. Leverage can magnify the fund's gains and losses and therefore increase its volatility. The fund is required to segregate liquid assets or otherwise cover its obligation created by an investment that is leveraged. The use of leverage may result in the portfolio having to liquidate fund holdings when it may not be advantageous to do so in order to satisfy its obligation or to meet segregation requirements.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Liquidity Risk: </b>Liquidity is the ability to sell securities or other investments within a reasonable amount of time at approximately the price at which the fund has valued the securities or other investments, which relies on the willingness of market participants to buy and sell securities. Certain investments may be difficult to purchase and sell, particularly during adverse market conditions, because there is a limited market for the investment or there are restrictions on resale. If the fund holds illiquid securities, it may be unable to take advantage of market opportunities or it may be forced to sell other, more desirable, liquid securities or sell illiquid securities at a loss if it is required to raise cash to conduct its operations.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Market and Regulatory Risk: </b>Events in the financial markets and in the economy may cause volatility and uncertainty and may affect performance. Events in one market may adversely impact other markets. Future events may impact the fund in unforeseen ways. Traditionally liquid investments may experience periods of diminished liquidity. Governmental and regulatory actions may impair fund management and have unexpected consequences on particular markets, strategies, or investments.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Mid-Capitalization Companies Risk: </b>Mid-capitalization companies may be riskier and more susceptible to price swings than larger companies. Mid-capitalization companies may have a shorter history of operations, a more limited ability to raise capital, may have inexperienced management and limited product lines, and more speculative prospects for future growth or sustained earnings or market share than larger, more established companies.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Mortgage-Related and Other Asset-Backed Securities Risk: </b>Mortgage-related and other asset-backed securities are subject to certain other risks. The value of these securities will be influenced by the factors affecting the housing market and the market for the assets underlying such securities. As a result, during periods of declining asset value, difficult or frozen credit markets, swings in interest rates, or deteriorating economic conditions, mortgage-related and asset-backed securities may decline in value, face valuation difficulties, become more volatile and/or become illiquid. These securities are also subject to extension risk, where issuers may pay principal later than expected, and prepayment risk, where issuers may pay principal more quickly than expected, causing proceeds to be reinvested at lower prevailing interest rates.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Price Volatility Risk: </b>The market value of the fund's investments will go up or down, sometimes rapidly or unpredictably, or may fail to rise, as a result of market conditions or for reasons specific to a particular issuer. The volatility of non-investment grade debt securities (including loans) may be greater than for investment grade securities. The volatility of investments in emerging market countries may be greater than for investments in U.S. and certain developed markets.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Short Sale Risk: </b>A short sale involves the risk that the price at which the fund purchases a security to replace the borrowed security may be higher than the price that the fund sold the security, resulting in a loss to the fund. Such loss is theoretically unlimited. Short sales also involve certain costs and may expose the fund to leverage risk.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Small Number of Holdings Risk: </b>A fund with a small number of holdings may have greater exposure to those holdings which could increase potential price volatility compared to portfolios with a greater number of holdings.</li></ul><ul type="square"><li style="margin-left:-20px"><b>U.S. Government Securities Risk: </b>Not all U.S. government securities are backed or guaranteed by the U.S. government and different U.S. government securities are subject to varying degrees of credit risk. There is risk that the U.S. government will not provide financial support to U.S. government agencies, instrumentalities or sponsored enterprises if it is not obligated to do so by law.</li></ul><ul type="square"><li style="margin-left:-20px"><b>Value Companies Risk: </b>Value companies are those that are thought to be undervalued and that a company's stock is trading for less than its intrinsic value. There is a risk that the determination that a stock is undervalued is not correct or is not recognized in the market.</li></ul> <b>Fund performance</b> The bar chart and table below provide some indication of the risks of investing in the fund by showing changes in the performance of the fund from year-to-year and by showing how the fund's returns compare to four broad-based benchmark indexes, which provide broad measures of market performance and correspond to four asset classes (fixed income, domestic equity, international equity and cash equivalents) that may be allocated to by the fund. The bar chart shows the performance of the fund's Class A shares. The fund's returns are also compared to its composite benchmark, which is comprised of up to the four broad-based indexes shown based on the target allocation(s) for the fund that were in effect through the periods shown. The fund's Advisor Class shares do not yet have a full calendar year of performance and are not included in the table below.<br/><br/>Past performance (before and after taxes) is not necessarily an indication of how the fund will perform in the future. Performance reflects expense limitations that were in effect during the periods presented. Sales loads are not reflected in the chart below. If these amounts were reflected, returns would be lower. Updated performance information may be obtained at our website: www.mutualfunds.pacificlife.com/mfc/home/performance.html, or by calling customer service at (800) 722-2333 (select Option 2). <b>Year by year total return (%)</b><br/>as of December 31 each year <b>Class A return for the period 1/1/12 through 3/31/12: </b>6.54%<br/><br/><b>Best and worst quarterly performance reflected within the bar chart:</b> Q2 2009: 11.34%; Q4 2008: (8.96%) <b>Average annual total returns</b><br/>For the periods ended December 31, 2011 The after-tax returns (a) are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes; (b) are shown for Class A shares only and will vary for other classes; and (c) are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. In some instances, the return after taxes on distributions and sale of shares may be greater than the return before taxes because the investor is assumed to be able to use the capital loss of the sale of fund shares to offset other taxable capital gains. The investment adviser has contractually agreed to limit certain "fund operating expenses" incurred by the fund that exceed an annual rate of 0.15% through 6/30/2015, and 0.30% from 7/1/2015 through 6/30/2022 for Class A, B, C and R shares; 0.20% through 12/31/2015, and 0.30% from 1/1/2016 through 6/30/2023 for Advisor Class shares. The agreement will terminate: (i) if the investment advisory agreement is terminated, or (ii) upon ninety days' prior written notice by the Pacific Life Funds. The investment adviser may recoup amounts reimbursed in future periods, not to exceed 3 years from the end of the fiscal year in which the reimbursement took place, provided that the recoupment would not cause the fund to exceed the expense cap. 0.0952 As with any mutual fund, the value of the fund's investments, and therefore the value of your shares, may go up or down. Accordingly, you could lose money. 50000 You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Pacific Life Funds. Your expenses (in dollars) if you <b>SELL </b>your shares at the end of each period. Your expenses (in dollars) if you <b>DON'T SELL </b>your shares at the end of each period. As with any mutual fund, the value of the fund's investments, and therefore the value of your shares, may go up or down. Accordingly, you could lose money. The bar chart and table below provide some indication of the risks of investing in the fund by showing changes in the performance of the fund from year-to-year and by showing how the fund's returns compare to four broad-based benchmark indexes, which provide broad measures of market performance and correspond to four asset classes (fixed income, domestic equity, international equity and cash equivalents) that may be allocated to by the fund. The bar chart and table below provide some indication of the risks of investing in the fund by showing changes in the performance of the fund from year-to-year and by showing how the fund's returns compare to four broad-based benchmark indexes, which provide broad measures of market performance and correspond to four asset classes (fixed income, domestic equity, international equity and cash equivalents) that may be allocated to by the fund. The fund's returns are also compared to its composite benchmark, which is comprised of up to the four broad-based indexes shown based on the target allocation(s) for the fund that were in effect through the periods shown. (800) 722-2333 (select Option 2) www.mutualfunds.pacificlife.com/mfc/home/performance.html Past performance (before and after taxes) is not necessarily an indication of how the fund will perform in the future. Sales loads are not reflected in the chart below. If these amounts were reflected, returns would be lower. The after-tax returns (a) are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes; (c) are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The fund's returns are also compared to its composite benchmark, which is comprised of up to the four broad-based indexes shown based on the target allocation(s) for the fund that were in effect through the periods shown. (b) are shown for Class A shares only and will vary for other classes; and In some instances, the return after taxes on distributions and sale of shares may be greater than the return before taxes because the investor is assumed to be able to use the capital loss of the sale of fund shares to offset other taxable capital gains. (800) 722-2333 (select Option 2) www.mutualfunds.pacificlife.com/mfc/home/performance.html Past performance (before and after taxes) is not necessarily an indication of how the fund will perform in the future. <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleAnnualTotalReturnsPLINCOMEFUNDBarChart column period compact * ~</div> Sales loads are not reflected in the chart below. If these amounts were reflected, returns would be lower. <b>Class A return for the period 1/1/12 through 3/31/12: 0.0654 The fund's Advisor Class shares do not yet have a full calendar year of performance and are not included in the table below. 2012-03-31 <b>Best quarterly performance reflected within the bar chart:</b> 2009-06-30 0.1134 <b>worst quarterly performance reflected within the bar chart:</b> <b>Class A return for the period 1/1/12 through 3/31/12:</b> 2012-03-31 0.0414 <b>PL Portfolio Optimization Moderate-Conservative Fund</b> <b>Best quarterly performance reflected within the bar chart:</b> 2009-06-30 0.0829 <b>worst quarterly performance reflected within the bar chart:</b> 2008-09-30 -0.0495 0.0129 0.0204 0.0204 0.0154 0.0109 <strong>Class A return for the period 1/1/12 through 3/31/12:</strong> 2012-03-31 0.0878 <strong>Best quarterly performance reflected within the bar chart:</strong> 2009-06-30 0.1447 <strong>worst quarterly performance reflected within the bar chart:</strong> 2008-12-31 -0.1429 0.0135 0.021 0.021 0.016 0.0115 <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleShareholderFeesPLPORTFOLIOOPTIMIZATIONMODERATE-CONSERVATIVE column period compact * ~</div> <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleAnnualFundOperatingExpensesPLPORTFOLIOOPTIMIZATIONMODERATE-CONSERVATIVE column period compact * ~</div> Expense information has been restated to reflect current fees. <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleAnnualTotalReturnsPLPORTFOLIOOPTIMIZATIONMODERATE-CONSERVATIVEBarChart column period compact * ~</div> <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleShareholderFeesPLPORTFOLIOOPTIMIZATIONMODERATE column period compact * ~</div> In some instances, the return after taxes on distributions and sale of shares may be greater than the return before taxes because the investor is assumed to be able to use the capital loss of the sale of fund shares to offset other taxable capital gains. <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleAverageAnnualTotalReturnsTransposedPLPORTFOLIOOPTIMIZATIONMODERATE-CONSERVATIVE column period compact * ~</div> The table that follows describes the fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Pacific Life Funds. More information about these and other discounts is available from your financial professional and in the Overview of the Share Classes section in this prospectus. <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleAnnualFundOperatingExpensesPLPORTFOLIOOPTIMIZATIONMODERATE column period compact * ~</div> <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleExpenseExamplePLPORTFOLIOOPTIMIZATIONMODERATE column period compact * ~</div> <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleExpenseExampleNoRedemptionPLPORTFOLIOOPTIMIZATIONMODERATE column period compact * ~</div> The investment adviser has contractually agreed to limit certain "fund operating expenses" incurred by the fund that exceed an annual rate of 0.15% through 6/30/2015, and 0.30% from 7/1/2015 through 6/30/2022 for Class A, B, C and R shares; 0.20% through 12/31/2015, and 0.30% from 1/1/2016through 6/30/2023 for Advisor Class shares. The agreement will terminate: (i) if the investment advisory agreement is terminated, or (ii) upon ninety days' prior written notice by the Pacific Life Funds. The investment adviser may recoup amounts reimbursed in future periods, not to exceed 3 years from the end of the fiscal year in which the reimbursement took place, provided that the recoupment would not cause the fund to exceed the expense cap. 0.1251 You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Pacific Life Funds. 0.0924 0.0735 0.1362 0.0715 -0.3385 0.304 0.1388 -0.0204 50000 As with any mutual fund, the value of the fund's investments, and therefore the value of your shares, may go up or down. Accordingly, you could lose money. The bar chart and table below provide some indication of the risks of investing in the fund by showing changes in the performance of the fund from year-to-year and by showing how the fund's returns compare to four broad-based benchmark indexes, which provide broad measures of market performance and correspond to four asset classes (domestic equity, international equity, fixed income and cash equivalents) that may be allocated to by the fund. The fund's returns are also compared to its composite benchmark, which is comprised of up to the four broad-based indexes shown based on the target allocations for the fund that were in effect through the periods shown. -0.0741 -0.0756 -0.0461 (800) 722-2333 (select Option 2) -0.0761 -0.0377 -0.0228 0.0211 -0.1214 www.mutualfunds.pacificlife.com/mfc/home/performance.html 0.0784 0.001 -0.0009 Past performance (before and after taxes) is not necessarily an indication of how the fund will perform in the future. Sales loads are not reflected in the chart below. If these amounts were reflected, returns would be lower. -0.0053 -0.0106 -0.006 -0.0051 -0.0013 0.0039 -0.0025 -0.0472 The after-tax returns (a) are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes; 0.065 0.0149 0.0044 (c) are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. (b) are shown for Class A shares only and will vary for other classes; and In some instances, the return after taxes on distributions and sale of shares may be greater than the return before taxes because the investor is assumed to be able to use the capital loss of the sale of fund shares to offset other taxable capital gains. 0.0332 0.0278 0.0269 0.0339 0.0338 0.0284 0.0363 0.0387 0.0544 0.0208 0.0424 2003-12-31 2003-12-31 2003-12-31 2003-12-31 2003-12-31 2005-09-30 2003-12-31 2003-12-31 2003-12-31 2003-12-31 2003-12-31 0.055 0 0 0 0 0 0.05 0.01 0 0 0.002 0.002 0.002 0.002 0.002 0.0025 0.01 0.01 0.005 0 0.0029 0.0029 0.0029 <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleExpenseExamplePLFLOATINGRATEINCOMEFUNDCLASSP column period compact * ~</div> 0.0029 0.0029 0.0083 0.0083 0.0083 0.0083 0.0083 0.0157 0.0232 0.0232 0.0182 0.0132 -0.0014 -0.0014 -0.0014 -0.0014 -0.0009 <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleExpenseExamplePLPORTFOLIOOPTIMIZATIONMODERATECONSERVATIVE column period compact * ~</div> 0.0143 0.0218 0.0218 0.0168 0.0123 <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleExpenseExampleNoRedemptionPLFLOATINGRATEINCOMEFUNDCLASSP column period compact * ~</div> <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleExpenseExampleNoRedemptionPLPORTFOLIOOPTIMIZATIONMODERATECONSERVATIVE column period compact * ~</div> <b>PL Portfolio Optimization Moderate-Aggressive Fund</b> The fund seeks to achieve its investment goal through a strategy of allocating its assets to diverse investment styles within the two major asset classes of equity and debt securities. Under normal market conditions, the fund maintains a balance between the two major asset classes of equity and debt by allocating its assets in the following target amounts:<table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"><tr style="FONT-SIZE: 1pt" valign="bottom"><td width="79%"></td><td width="3%"></td><td width="1%" align="right"></td><td width="4%" align="right"></td><td width="1%" align="left"></td><td width="4%"></td><td width="1%" align="right"></td><td width="6%" align="right"></td><td width="1%" align="left"></td></tr><tr valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center"></td><td></td><td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>Asset Class</b> </td><td></td></tr><tr valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="left"><b>Fund</b> </td><td></td><td valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Debt</b> </td><td></td><td></td><td valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Equity</b> </td><td></td></tr><tr style="FONT-SIZE: 2pt" valign="bottom" align="center"><td valign="bottom" colspan="8" align="center"><div style="BORDER-BOTTOM: #000000 1pt solid; WIDTH: 100%; MARGIN-LEFT: 0%; FONT-SIZE: 0pt"></div></td><td></td></tr><tr valign="bottom"><td valign="bottom" align="left"><div style="TEXT-INDENT: -8pt; MARGIN-LEFT: 8pt">PL Portfolio Optimization Moderate-Aggressive Fund</div></td><td></td><td valign="bottom" nowrap="nowrap" align="left"></td><td valign="bottom" nowrap="nowrap" align="right">20 </td><td valign="bottom" nowrap="nowrap" align="left">% </td><td></td><td valign="bottom" nowrap="nowrap" align="left"></td><td valign="bottom" nowrap="nowrap" align="right">80 </td><td valign="bottom" nowrap="nowrap" align="left">% </td></tr><tr style="FONT-SIZE: 2pt" valign="bottom"><td valign="bottom" colspan="9"><div style="BORDER-BOTTOM: #000000 1pt solid; WIDTH: 100%; MARGIN-LEFT: 0%; FONT-SIZE: 0pt"></div></td></tr></table>The fund is a "fund of funds" that invests primarily in a combination of other mutual fund portfolios of the Pacific Life Funds (Underlying Funds). Within the broad asset classes of equity and debt, the fund diversifies its holdings by investing in Underlying Funds that represent a variety of investment styles and security types. The portion of the fund invested in equity securities may be allocated to Underlying Funds that, in turn, invest in equity securities that may include, among others:<ul type="square"><li style="margin-left:-20px">Growth, value and "core" stocks;</li></ul><ul type="square"><li style="margin-left:-20px">Market capitalizations that represent large-, mid- and small- sized companies;</li></ul><ul type="square"><li style="margin-left:-20px">Stocks of companies with a history of paying dividends;</li></ul><ul type="square"><li style="margin-left:-20px">Sector funds;</li></ul><ul type="square"><li style="margin-left:-20px">Domestic and international stocks, including emerging market stocks.</li></ul>The portion of the fund invested in debt securities may be allocated to Underlying Funds that, in turn, invest in debt securities that may include, among others:<ul type="square"><li style="margin-left:-20px">Investment grade debt securities, which may include U.S. Government securities, corporate bonds, mortgage-related securities, and other asset-backed securities;</li></ul><ul type="square"><li style="margin-left:-20px">International debt securities, which may include emerging market debt;</li></ul><ul type="square"><li style="margin-left:-20px">Debt instruments of varying duration;</li></ul><ul type="square"><li style="margin-left:-20px">High-yield bonds;</li></ul><ul type="square"><li style="margin-left:-20px">Floating rate loans;</li></ul><ul type="square"><li style="margin-left:-20px">Inflation-indexed bonds; and</li></ul><ul type="square"><li style="margin-left:-20px">Money market instruments.</li></ul>The fund may also, at any time, invest in Underlying Funds that hold other equity or debt securities. Underlying Funds may seek investment exposure through direct investments in securities or through derivatives. The fund may invest a significant portion of its assets in any single Underlying Fund. The fund will be as fully invested, as practical, although it may maintain liquidity reserves to meet redemption requests.<br/><br/>The asset class targets shown above are targets and the actual amounts invested in the two major asset classes may vary because of market movements or tactical decisions made by the investment adviser (PLFA); however, the fund's assets allocated to the two major asset classes are not normally expected to vary by more than 10% from the asset class target amounts. When determining which Underlying Fund corresponds to the selected investment styles and security types, PLFA takes into account that an Underlying Fund may utilize more than one investment style and may invest in more than one type of security.<br/><br/>A two-step asset allocation process is used to construct the funds. The process begins by developing the fund's target blend between the two broad asset classes and underlying investment styles within each broad asset class. This is then followed by determining target allocations among the various Underlying Funds in order to produce the desired risk/return profile. PLFA's allocations among the Underlying Funds are determined using this asset allocation process which seeks to optimize returns for the fund by allocating among different asset classes given the desired risk/return profile of the fund. Periodically, PLFA will re-evaluate the fund's allocations to the various Underlying Funds and may update the fund's target allocations to such Underlying Funds at that time. PLFA may change the target allocations among asset classes and investment styles and/or the allocations to the Underlying Funds from time to time, based on PLFA's assessment of market conditions or other factors.<br/><br/>When investing purchase proceeds and meeting redemptions for the fund, PLFA may use a methodology to identify assets to be purchased or sold by the fund that factors in the target allocations and the current allocations of the fund. This methodology is intended to help maintain target allocations, although there is no assurance that the fund will maintain its target allocations using this methodology.<br/><br/>For additional information about the fund's investment strategies, the names and investment strategies of the Underlying Funds in which the fund may invest and where to obtain information about the fund's investments in the Underlying Funds as of the most recent month end, please see the Additional Information About Investments, Strategies and Risks section in this prospectus. 688 721 321 171 125 978 1082 682 530 390 1319 1400 1200 944 696 <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleExpenseExamplePLFLOATINGRATEINCOMEFUND column period compact * ~</div> 2279 2433 2621 2101 1565 <b>Class A return for the period 1/1/12 through 3/31/12: </b>10.90%<br/><br/><b>Best and worst quarterly performance reflected within the bar chart:</b> Q2 2009: 17.90%; Q4 2008: (19.25%) <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleExpenseExampleNoRedemptionPLFLOATINGRATEINCOMEFUND column period compact * ~</div> <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleShareholderFeesPLPORTFOLIOOPTIMIZATIONMODERATE-AGGRESSIVE column period compact * ~</div> 688 221 221 171 125 978 682 682 530 390 1319 1200 1200 944 696 2279 2433 2621 2101 1565 <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleAnnualFundOperatingExpensesPLPORTFOLIOOPTIMIZATIONMODERATE-AGGRESSIVE column period compact * ~</div> <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleExpenseExamplePLPORTFOLIOOPTIMIZATIONMODERATEAGGRESSIVE column period compact * ~</div> 0.1024 0.09 0.1722 0.0654 -0.4002 0.3328 0.1551 <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleExpenseExampleNoRedemptionPLPORTFOLIOOPTIMIZATIONMODERATEAGGRESSIVE column period compact * ~</div> -0.042 <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleAnnualTotalReturnsPLPORTFOLIOOPTIMIZATIONMODERATE-AGGRESSIVEBarChart column period compact * ~</div> 2003-12-31 2003-12-31 2003-12-31 2003-12-31 2003-12-31 2005-09-30 2003-12-31 2003-12-31 2003-12-31 2003-12-31 -0.0946 -0.0953 -0.0605 <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleAverageAnnualTotalReturnsTransposedPLPORTFOLIOOPTIMIZATIONMODERATE-AGGRESSIVE column period compact * ~</div> -0.098 -0.06 0.0211 -0.0444 -0.1214 0.0784 0.001 -0.018 -0.0229 -0.0265 -0.0198 -0.0231 -0.0193 -0.014 -0.0025 -0.0472 0.065 0.0149 -0.0119 0.0288 0.0248 0.0242 0.0294 0.0294 0.0199 0.0363 0.0387 0.0544 0.0208 0.0367 The table that follows describes the fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Pacific Life Funds. More information about these and other discounts is available from your financial professional and in the Overview of the Share Classes section in this prospectus. <strong>Class A return for the period 1/1/12 through 3/31/12: </strong>2.30%<br/><br/><strong>Best and worst quarterly performance reflected within the bar chart:</strong> Q4 2011: 3.04%; Q3 2011: 0.00% The investment adviser has contractually agreed to limit certain "fund operating expenses" incurred by the fund that exceed an annual rate of 0.15% through 06/30/2014 and 0.20% from 07/01/2014 through 06/30/2015. The agreement will terminate: (i) if the investment advisory agreement is terminated, or (ii) upon ninety days' prior written notice by the Pacific Life Funds. The investment adviser may recoup amounts reimbursed in future periods, not to exceed 3 years from the end of the fiscal year in which the reimbursement took place, provided that the recoupment would not cause the fund to exceed the expense cap. The fund does not have a full calendar year of performance to compare against a broad measure of market performance. The fund seeks to achieve its investment goal through a strategy of allocating its assets to diverse investment styles within the two major asset classes of equity and debt securities. Under normal market conditions, the fund maintains a balance between the two major asset classes of equity and debt by allocating its assets in the following target amounts:<br/><br/><table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"><tr style="FONT-SIZE: 1pt" valign="bottom"><td width="79%"></td><td width="3%"></td><td width="1%" align="right"></td><td width="4%" align="right"></td><td width="1%" align="left"></td><td width="4%"></td><td width="1%" align="right"></td><td width="6%" align="right"></td><td width="1%" align="left"></td></tr><tr valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center"></td><td></td><td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><b>Asset Class</b> </td><td></td></tr><tr valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="left"><b>Fund</b> </td><td></td><td valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Debt</b> </td><td></td><td></td><td valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Equity</b> </td><td></td></tr><tr style="FONT-SIZE: 2pt" valign="bottom" align="center"><td valign="bottom" colspan="8" align="center"><div style="BORDER-BOTTOM: #000000 1pt solid; WIDTH: 100%; MARGIN-LEFT: 0%; FONT-SIZE: 0pt"></div></td><td></td></tr><tr valign="bottom"><td valign="bottom" align="left"><div style="TEXT-INDENT: -8pt; MARGIN-LEFT: 8pt">PL Portfolio Optimization Aggressive Fund </div></td><td></td><td valign="bottom" nowrap="nowrap" align="left"></td><td valign="bottom" nowrap="nowrap" align="right">5 </td><td valign="bottom" nowrap="nowrap" align="left">% </td><td></td><td valign="bottom" nowrap="nowrap" align="left"></td><td valign="bottom" nowrap="nowrap" align="right">95 </td><td valign="bottom" nowrap="nowrap" align="left">% </td></tr><tr style="FONT-SIZE: 2pt" valign="bottom"><td valign="bottom" colspan="9"><div style="BORDER-BOTTOM: #000000 1pt solid; WIDTH: 100%; MARGIN-LEFT: 0%; FONT-SIZE: 0pt"></div></td></tr></table><br/><br/>The fund is a "fund of funds" that invests primarily in a combination of other mutual fund portfolios of the Pacific Life Funds (Underlying Funds). Within the broad asset classes of equity and debt, the fund diversifies its holdings by investing in Underlying Funds that represent a variety of investment styles and security types. The portion of the fund invested in equity securities may be allocated to Underlying Funds that, in turn, invest in equity securities that may include, among others:<ul type="square"><li style="margin-left:-20px">Growth, value and "core" stocks;</li></ul><ul type="square"><li style="margin-left:-20px">Market capitalizations that represent large-, mid- and small-sized companies;</li></ul><ul type="square"><li style="margin-left:-20px">Stocks of companies with a history of paying dividends;</li></ul><ul type="square"><li style="margin-left:-20px">Sector funds;</li></ul><ul type="square"><li style="margin-left:-20px">Domestic and international stocks, including emerging market stocks.</li></ul>The portion of the fund invested in debt securities may be allocated to Underlying Funds that, in turn, invest in debt securities that may include, among others:<ul type="square"><li style="margin-left:-20px">Investment grade debt securities, which may include U.S. Government securities, corporate bonds, mortgage-related securities, and other asset-backed securities;</li></ul><ul type="square"><li style="margin-left:-20px">International debt securities, which may include emerging market debt;</li></ul><ul type="square"><li style="margin-left:-20px">Debt instruments of varying duration;</li></ul><ul type="square"><li style="margin-left:-20px">High-yield bonds;</li></ul><ul type="square"><li style="margin-left:-20px">Floating rate loans;</li></ul><ul type="square"><li style="margin-left:-20px">Inflation-indexed bonds; and</li></ul><ul type="square"><li style="margin-left:-20px">Money market instruments.</li></ul>The fund may also, at any time, invest in Underlying Funds that hold other equity or debt securities. Underlying Funds may seek investment exposure through direct investments in securities or through derivatives. The fund may invest a significant portion of its assets in any single Underlying Fund. The fund will be as fully invested, as practical, although it may maintain liquidity reserves to meet redemption requests.<br /><br />The asset class targets shown above are targets and the actual amounts invested in the two major asset classes may vary because of market movements or tactical decisions made by the investment adviser (PLFA); however, the fund's assets allocated to the two major asset classes are not normally expected to vary by more than 10% from the asset class target amounts. When determining which Underlying Fund corresponds to the selected investment styles and security types, PLFA takes into account that an Underlying Fund may utilize more than one investment style and may invest in more than one type of security.<br /><br />A two-step asset allocation process is used to construct the funds. The process begins by developing the fund's target blend between the two broad asset classes and underlying investment styles within each broad asset class. This is then followed by determining target allocations among the various Underlying Funds in order to produce the desired risk/return profile. PLFA's allocations among the Underlying Funds are determined using this asset allocation process which seeks to optimize returns for the fund by allocating among different asset classes given the desired risk/return profile of the fund. Periodically, PLFA will re-evaluate the fund's allocations to the various Underlying Funds and may update the fund's target allocations to such Underlying Funds at that time. PLFA may change the target allocations among asset classes and investment styles and/or the allocations to the Underlying Funds from time to time, based on PLFA's assessment of market conditions or other factors.<br /><br />When investing purchase proceeds and meeting redemptions for the fund, PLFA may use a methodology to identify assets to be purchased or sold by the fund that factors in the target allocations and the current allocations of the fund. This methodology is intended to help maintain target allocations, although there is no assurance that the fund will maintain its target allocations using this methodology. <br /><br />For additional information about the fund's investment strategies, the names and investment strategies of the Underlying Funds in which the fund may invest and where to obtain information about the fund's investments in the Underlying Funds as of the most recent month end, please see the Additional Information About Investments, Strategies and Risks section in this prospectus.<br /><br /> <b>Class A return for the period 1/1/12 through 3/31/12: </b> 2012-03-31 0.1255 <b>Best quarterly performance reflected with the bar chart:</b> 2009-06-30 0.2061 <b>worst quarterly performance reflected with the bar chart:</b> 2008-12-31 -0.2372 <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleAnnualTotalReturnsPLPORTFOLIOOPTIMIZATIONAGGRESSIVEBarChart column period compact * ~</div> 2003-12-31 <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleExpenseExamplePLPORTFOLIOOPTIMIZATIONAGGRESSIVE column period compact * ~</div> <div style="display:none">~ http://www.mutualfunds.pacificlife.com/role/ScheduleExpenseExampleNoRedemptionPLPORTFOLIOOPTIMIZATIONAGGRESSIVE column period compact * ~</div> <b>Class A return for the period 1/1/12 through 3/31/12:</b> <b>Best quarterly performance reflected within the bar chart:</b> <b>worst quarterly performance reflected within the bar chart:</b> 0.109 0.179 -0.1925 2012-03-31 2009-06-30 2008-12-31 -0.0896 2008-12-31 Sales loads are not reflected in the chart below. If these amounts were reflected, returns would be lower. The fund's Advisor Class shares do not yet have a full calendar year of performance and are not included in the table below. The fund's Advisor Class shares do not yet have a full calendar year of performance and are not included in the table below. The fund's Advisor Class shares do not yet have a full calendar year of performance and are not included in the table below. The fund's Class C and Advisor Class shares do not yet have a full calendar year of performance and are not included in the table below. The fund's Advisor Class shares do not yet have a full calendar year of performance and are not included in the table below. The fund may also seek capital appreciation. "Other Expenses" for Advisor Class shares are based on estimated amounts for the current fiscal year. "Other Expenses" for Advisor Class shares are based on estimated amounts for the current fiscal year. "Other Expenses" for Advisor Class shares are based on estimated amounts for the current fiscal year. Expense information has been restated to reflect current fees. "Other Expenses" for Class A, Class C and Advisor Class are based on estimated amounts for the current fiscal year. The investment adviser has contractually agreed to limit certain "fund operating expenses" incurred by the fund that exceed an annual rate of 0.20% through 6/30/2015. The agreement will terminate: (i) if the investment advisory agreement is terminated, or (ii) upon ninety days' prior written notice by the Pacific Life Funds. The investment adviser may recoup amounts reimbursed in future periods, not to exceed 3 years from the end of the fiscal year in which the reimbursement took place, provided that the recoupment would not cause the fund to exceed the expense cap. after Expense Reimbursement after Expense Reimbursement The investment adviser has contractually agreed to limit certain "fund operating expenses" incurred by the fund that exceed an annual rate of 0.15% through 12/31/2014, and 0.20% from 01/01/2015 through 6/30/2015. The agreement will terminate: (i) if the investment advisory agreement is terminated, or (ii) upon ninety days' prior written notice by the Pacific Life Funds. The investment adviser may recoup amounts reimbursed in future periods, not to exceed 3 years from the end of the fiscal year in which the reimbursement took place, provided that the recoupment would not cause the fund to exceed the expense cap. "Other Expenses" for the Advisor Class are based on estimated amounts for the current fiscal year. The investment adviser has contractually agreed to limit certain "fund operating expenses" incurred by the fund that exceed an annual rate of 0.15% through 06/30/2014 and 0.20% from 07/01/2014 through 06/30/2015. The agreement will terminate: (i) if the investment advisory agreement is terminated, or (ii) upon ninety days' prior written notice by the Pacific Life Funds. The investment adviser may recoup amounts reimbursed in future periods, not to exceed 3 years from the end of the fiscal year in which the reimbursement took place, provided that the recoupment would not cause the fund to exceed the expense cap. After Expense Reimbursement Expense information has been restated to reflect current fees. "Other Expenses" for Class A, Class C and Advisor Class are based on estimated amounts for the current fiscal year. The investment adviser has contractually agreed to limit certain "fund operating expenses" incurred by the fund that exceed an annual rate of 0.20% through 6/30/2015. The agreement will terminate: (i) if the investment advisory agreement is terminated, or (ii) upon ninety days' prior written notice by the Pacific Life Funds. The investment adviser may recoup amounts reimbursed in future periods, not to exceed 3 years from the end of the fiscal year in which the reimbursement took place, provided that the recoupment would not cause the fund to exceed the expense cap. "Other Expenses" for the Advisor Class shares are based on estimated amounts for the current fiscal year. The investment adviser has contractually agreed to limit certain "fund operating expenses" incurred by the fund that exceed an annual rate of 0.15% through 6/30/2015, and 0.30% from 7/1/2015 through 6/30/2022 for Class A, B, C and R shares; 0.20% through 12/31/2015, and 0.30% from 1/1/2016 through 6/30/2023 for Advisor Class shares. The agreement will terminate: (i) if the investment advisory agreement is terminated, or (ii) upon ninety days' prior written notice by the Pacific Life Funds. The investment adviser may recoup amounts reimbursed in future periods, not to exceed 3 years from the end of the fiscal year in which the reimbursement took place, provided that the recoupment would not cause the fund to exceed the expense cap. "Other Expenses" for Advisor Class shares are based on estimated amounts for the current fiscal year. "Other Expenses" are based on estimated amounts for the current fiscal year. The investment adviser has contractually agreed to limit certain "fund operating expenses" incurred by the fund that exceed an annual rate of 0.15% through 12/31/2014, and 0.20% from 1/1/2015 through 6/30/2016. The agreement will terminate: (i) if the investment advisory agreement is terminated, or (ii) upon ninety days' prior written notice by the Pacific Life Funds. The investment adviser may recoup amounts reimbursed in future periods, not to exceed 3 years from the end of the fiscal year in which the reimbursement took place, provided that the recoupment would not cause the fund to exceed the expense cap. Less Fee Waiver and The investment adviser has contractually agreed to limit certain "fund operating expenses" incurred by the fund that exceed an annual rate of 0.15% through 6/30/2015, and 0.30% from 7/1/2015 through 6/30/2022 for Class A, B, C and R shares; 0.20% through 12/31/2015, and 0.30% from 1/1/2016 through 6/30/2023 for Advisor Class shares. The agreement will terminate: (i) if the investment advisory agreement is terminated, or (ii) upon ninety days' prior written notice by the Pacific Life Funds. The investment adviser may recoup amounts reimbursed in future periods, not to exceed 3 years from the end of the fiscal year in which the reimbursement took place, provided that the recoupment would not cause the fund to exceed the expense cap. after Expense Reimbursements "Other Expenses" for Advisor Class shares are based on estimated amounts for the current fiscal year. After Fee Waiver and Expense Reimbursement "Other Expenses" for Advisor Class shares are based on estimated amounts for the current fiscal year. The investment adviser has contractually agreed to limit certain "fund operating expenses" incurred by the fund that exceed an annual rate of 0.15% through 6/30/2015, and 0.30% from 7/1/2015 through 6/30/2022 for Class A, B, C and R shares; 0.20% through 12/31/2015, and 0.30% from 1/1/2016 through 6/30/2023 for Advisor Class shares. The agreement will terminate: (i) if the investment advisory agreement is terminated, or (ii) upon ninety days' prior written notice by the Pacific Life Funds. The investment adviser may recoup amounts reimbursed in future periods, not to exceed 3 years from the end of the fiscal year in which the reimbursement took place, provided that the recoupment would not cause the fund to exceed the expense cap. The investment adviser has contractually agreed to limit certain "fund operating expenses" incurred by the fund that exceed an annual rate of 0.15% through 6/30/2015, and 0.30% from 7/1/2015 through 6/30/2022 for Class A, B, C and R shares; 0.20% through 12/31/2015, and 0.30% from 1/1/2016 through 6/30/2023 for Advisor Class shares. The agreement will terminate: (i) if the investment advisory agreement is terminated, or (ii) upon ninety days' prior written notice by the Pacific Life Funds. The investment adviser may recoup amounts reimbursed in future periods, not to exceed 3 years from the end of the fiscal year in which the reimbursement took place, provided that the recoupment would not cause the fund to exceed the expense cap. "Other Expenses" for Advisor Class shares are based on estimated amounts for the current fiscal year. 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