Strategy. Under normal circumstances, the Fund buys and sells total return swap agreements to gain exposure to the U.S. and developed foreign equity markets, including growth and value styles, that may be denominated in foreign currencies. Pacific Life Fund Advisors LLC (PLFA), the investment adviser to the Fund, actively manages the Funds exposures in these asset classes in seeking to contribute to overall returns for the Fund. PLFA generally seeks exposure to large-capitalization and mid-capitalization equities as defined by relevant index providers. PLFA allocates the Funds assets among these asset classes based on its investment views, which take into account the following factors that span across different time horizons: Valuations. Economic fundamentals. Investor sentiment. PLFA may increase or decrease the Funds … Show more… Under normal circumstances, the Fund buys and sells total return swap agreements to gain exposure to the U.S. and developed foreign equity markets, including growth and value styles, that may be denominated in foreign currencies. Pacific Life Fund Advisors LLC (PLFA), the investment adviser to the Fund, actively manages the Funds exposures in these asset classes in seeking to contribute to overall returns for the Fund. PLFA generally seeks exposure to large-capitalization and mid-capitalization equities as defined by relevant index providers. PLFA allocates the Funds assets among these asset classes based on its investment views, which take into account the following factors that span across different time horizons: Valuations. Economic fundamentals. Investor sentiment. PLFA may increase or decrease the Funds exposure to an asset class in order to seek to capture upside opportunities, mitigate risk from disruptive market events, or for other reasons consistent with the Funds investment goal. PLFA seeks to gain or increase exposure to those market segments that are expected to benefit from a blend of the above three factors. Conversely, PLFA seeks to eliminate or reduce exposure to those segments of the market that are expected to be adversely affected by these three factors, or where other asset classes appear more attractive. The sub-adviser normally invests the Funds assets across different groups of industries/sectors, but may invest a significant percentage of the Funds assets in issuers in a single sector. As of March 31, 2022, a significant portion of the Fund is represented by securities of companies in the Financial sector. The components of the Fund are likely to change over time. When constructing the portfolio, PLFA will buy and sell total return swap agreements to obtain exposure to each asset class as determined by its investment process. While PLFA currently believes the likelihood is low that it will use other instruments in place of total return swaps, PLFA may purchase or sell futures or exchange-traded funds (or total return swaps on exchange-traded funds) as an alternative to the total return swaps if it determines that such instruments should be used to obtain these exposures. Collateral Management: A significant portion of the Funds assets will be invested in investment grade debt securities, including domestic debt, and U.S. dollar denominated debt issued by foreign entities in developed markets, which are available as collateral for the Funds derivative positions. The investment grade debt securities are managed by Pacific Asset Management LLC and will normally include corporate debt, asset-backed securities, mortgage-related securities, U.S. government securities and agency securities, and cash and cash equivalents. These holdings may earn some income for the Fund. Under normal circumstances, the investment grade debt securities of the Fund are expected to maintain an average credit quality of A+ by Standard & Poors or of equivalent rating by Moodys or Fitch and a weighted average duration between 1 and 2.75 years. Show less