The PL Diversified Alternatives Fund may help investors smooth out their overall portfolio risk and improve diversification, the firm says. The mutual fund has a fund-of-funds structure and invests in a variety of other mutual funds of Pacific Life Funds considered to follow alternative or nontraditional investment strategies.
Each underlying fund in the PL Diversified Alternatives Fund product represents a distinct investment strategy with varying degrees of volatility, the firm says. Return potential depends on market conditions. Among the variety of asset classes, the fund may invest in currency, emerging market debt, emerging market equity, floating rate loans, global absolute return funds, inflation-managed bonds, precious metals and real estate.
“In terms of investment philosophy, several factors set this fund apart,” says Chris van Mierlo, chief marketing officer and senior vice president of sales for Pacific Life’s Retirement Solutions Division. “The fund provides low correlation with the broad markets. Our fund managers focus on a disciplined balance between correlation and performance, all while keeping a close eye on fund volatility.”
Rather than making short-term, tactical calls on alternatives market segments, all major decisions will be made with a long-term perspective in mind, he adds.
Pacific Life Fund Advisors is the fund manager of the PL Diversified Alternatives Fund. The portfolio managers include Howard Hirakawa, Carleton Muench and Samuel Park. The investment management team has more than than 48 years of combined experience managing fund-of-funds strategies, according to Pacific Life. Their expertise allows them to make all decisions regarding the fund’s allocations, investment risk management, and the selection of managers for each underlying fund.
The PL Diversified Alternatives Fund is offered in A, C, and Advisor shares. For more information, or to view the entire fund lineup from Pacific Life Funds, visit www.PLFunds.com or call 800-722-2333.