Diversified Alternatives Portfolio

C000161611 Fund Overview

Diversified Alternatives Portfolio is a US mutual fund managed by Pacific Select Fund, categorised as Total Return Allocation. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US mutual fund
• Manager: Pacific Select Fund
• Category: Total Return Allocation
• Assets under management: $6.30M
• SEC CIK: 0000813900
• SEC series ID: S000051247
• Share class ID: C000161611

C000161611 Investment Objective and Strategy

Diversified Alternatives Portfolio describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Pacific Select Fund.

Investment objective

This Fund seeks to provide total return

Principal investment strategy

This Fund is a fund of funds that seeks to achieve its investment goal by investing in other funds of the Trust (the Underlying Funds). The Fund seeks to maintain a low to moderate correlation of its returns with the returns of traditional equity and fixed income asset classes over long-term periods by gaining exposure to a number of non-traditional asset classes and alternative investment strategies through its investments in the Underlying Funds. The low to moderate correlation that the Fund seeks to maintain means that the Funds returns are intended not to have a strong direct relationship (up or down) to movements in the traditional equity and fixed income asset classes, although there are expected to be some related movements. Thus, the Fund may complement and/or serve to further diversify an investors portfolio of traditional equity and fixed income investments.

Although the performance of the Fund is generally expected to have low to moderate correlation with the performance of traditional equity and fixed income asset classes over long-term periods, certain investment decisions might cause the Fund to have a higher correlation with the performance of traditional asset classes over short- or long-term periods. Through its investments in the Underlying Funds, the Fund seeks exposure to non-traditional asset classes and alternative investment strategies that have one or more of the following characteristics (Alternative Asset Classes and Strategies): Non-Traditional Asset Classes Providing Diversified Returns investments in a diverse mix of asset classes that tend to have returns that have low to moderate correlation with the broad U.S. equity and fixed income markets.

Alpha-Seeking Strategies strategies or investments that seek to outperform the broad equity markets and/or fixed income markets on a risk-adjusted basis over a complete market cycle. Downside Protection Strategies strategies or investments that seek to reduce Fund losses during adverse and volatile market conditions. The Underlying Funds that have one or more of the above characteristics include funds that emphasize investments in real estate, emerging markets debt and equity, bank loans and inflation-indexed debt investments, and funds that employ currency, long/short equity and absolute return strategies. Absolute return strategies seek to achieve positive returns over a complete market cycle by taking both long and short positions. Pacific Life Fund Advisors LLC (PLFA), the investment adviser to the Fund, manages and oversees the Fund through a multi-step process that includes: (1) Asset Allocation/Portfolio Construction An asset class model (the Model) for the Fund is developed that seeks to meet the Funds investment goal using the Alternative Asset Classes and Strategies.

PLFA uses a risk-focused investment process to establish the allocations to the Alternative Asset Classes and Strategies based on the risks of each Alternative Asset Class and Strategy and their impact on the Funds risk/return objectives, the degree of correlation of each of the Alternative Asset Classes and Strategies to traditional broad U.S. equity and fixed income asset classes, the potential of an Alternative Asset Class and Strategy to gain long-term returns for the Fund, and the potential of an Alternative Asset Class and Strategy to reduce Fund losses during periods of market volatility. While PLFA will use these main factors when making investment decisions for the Fund, it may give greater weight to one factor over another, at its discretion, depending upon market conditions and the particular investment.

PLFA then determines the amount of the Funds assets to invest in each Underlying Fund in order to obtain the Alternative Asset Class and Strategy exposures designated by the Model for the Fund. After the Model is developed, PLFA may make adjustments to the Model and/or the allocations to each Underlying Fund based on PLFAs view of market conditions or its determination that the characteristics of an Alternative Asset Class and Strategy or of an Underlying Fund are changing (such as increasing correlations to U.S. equity or fixed income markets). (3) Manager Oversight PLFA monitors and evaluates the Underlying Fund Managers to seek to ensure that each Managers investment style and approach continue to be appropriate for the respective Underlying Fund. (4) Investment Risk Management PLFA monitors and analyzes the investment risks of the Fund, evaluates their impact on the Funds risk/return objectives and considers adjustments to the Funds allocations as a result.

To implement their investment strategies, the Underlying Funds may invest in derivative instruments, including forward foreign currency contracts, foreign currency options, swaps (including interest rate, cross-currency, total return and credit default swaps) and futures on securities, indices, currencies and other investments and they may use derivatives in a way that has a leveraging effect on an Underlying Funds exposure to specific investment opportunities. The Fund is expected to be as fully invested as practical, although it may maintain liquidity reserves to meet redemption requests. The Fund may invest a significant portion of its assets in any single Underlying Fund. PLFA has sole discretion in selecting the Underlying Funds for investment and may adjust the Funds allocations to the Underlying Funds, including adding or removing Underlying Funds, as it deems appropriate to meet the Funds investment goal.

For additional information about the Fund and its Underlying Fund investments, please see the Additional Information About Principal Investment Strategies and Principal Risks section in the Prospectus.

C000161611 Costs and Fees

C000161611 costs about $133 per $10,000 invested per year in fund expenses.

• Net expense ratio: 1.33%
• Gross expense ratio: 2.49%
• Portfolio turnover: 42%
• Brokerage commissions: 0.00 bps of average net assets (SEC N-CEN)

C000161611 Cashflows

Over the 12 months to 2019-09, Diversified Alternatives Portfolio had net inflows of $822.31K, from monthly SEC N-PORT filings.

C000161611 Debt Constituents

No individual debt constituents are reported in Diversified Alternatives Portfolio's latest SEC N-PORT filing.

C000161611 Prospectus and SEC Filings

Official Diversified Alternatives Portfolio filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2019-05-10
• Prospectus (485BPOS) — filed 2018-05-07
• Prospectus (485BPOS) — filed 2017-05-15
• Portfolio holdings (N-PORT) — filed 2019-11-27
• Annual census (N-CEN) — filed 2019-03-18

Related Funds

Other Total Return Allocation funds tracked on ABC INVEST:

• Federated Total Return Bond Fund (FTRFX)
• Columbia Balanced Fund (CBLAX)
• MFS Total Return Fund (MSFRX)
• AllianzGI Income & Growth Fund (AZNAX)
• AQR Risk Parity Fund (AQRNX)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.