Pacific Funds ESG Core Bond

Data updated: 2023-06-07

C000223103 — Pacific Funds ESG Core Bond. Total / Aggregate Bond · $26.25M AUM · 0.48% expense ratio. Holdings, fees, performance and SEC filings.

C000223103 Fund Overview

Pacific Funds ESG Core Bond is a US mutual fund managed by Pacific Funds Series Trust, categorised as Total / Aggregate Bond. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

Type: US mutual fund
Manager: Pacific Funds Series Trust
Category: Total / Aggregate Bond
Assets under management: $26.25M
1-year return: -4.1%
SEC CIK: 0001137761
SEC series ID: S000070151
Share class ID: C000223103

C000223103 Investment Objective and Strategy

Pacific Funds ESG Core Bond describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Pacific Funds Series Trust.

Investment objective

This Fund seeks total return, consisting of current income and capital appreciation, while giving consideration to certain environmental, social and governance (ESG) criteria.

Principal investment strategy

Under normal circumstances, the Fund will invest at least 80% of its assets in debt securities. The Fund primarily invests in a broad range of investment grade debt securities, including corporate bonds, mortgage-related securities, asset-backed securities, debt securities issued by the U.S. government or its related agencies and U.S. dollar-denominated debt securities issued by developed foreign governments and corporations. Under normal circumstances, the Fund may invest up to 65% of its assets in corporate bonds. The Fund may invest up to 30% of its assets in U.S. dollar-denominated debt securities of developed foreign governments and corporations. The Fund expects to maintain a weighted average duration within two years (plus or minus) of the Bloomberg US Aggregate Bond Index. Duration is often used to measure a bonds sensitivity to interest rates.

The longer a funds duration, the more sensitive it is to interest rate risk . The shorter a funds duration, the less sensitive it is to interest rate risk . The duration of the Bloomberg US Aggregate Bond Index was 6.58 years as of March 31, 2022. The sub-advisers investment process for the Fund is based on a combination of the sub-advisers fundamental research process, the sub-advisers ESG exclusions and the sub-advisers analysis of ESG metrics provided by independent third party ESG data providers (the ESG exclusions and ESG metrics together, the ESG Criteria). These considerations are described below. Fundamental Research Process. The sub-advisers fundamental research process combines a bottom-up issuer analysis and top-down market assessment. A bottom-up issuer analysis relies upon the sub-advisers fundamental research analysis of individual issuers.

A top-down market assessment provides a framework for portfolio risk positioning and sector allocations. Once this is determined, the sub-adviser looks for companies that it believes have sustainable competitive positions, strong management teams and the ability to repay or refinance its debt obligations. The sub-adviser performs a credit analysis on each potential issuer and a relative value analysis for each potential investment. When selecting investments, the sub-adviser may invest in instruments that it believes have the potential for capital appreciation. ESG Exclusions. The sub-adviser has created the following ESG exclusions to seek to screen out investment in issuers of corporate bonds with direct involvement in: (i) the production of thermal coal, distribution of thermal coal, sale of thermal coal or use of thermal coal to manufacture other products or services that contribute materially to company revenue in excess of the sub-advisers revenue threshold; (ii) the production of tobacco; (iii) the production or sale of controversial military weapons; and (iv) serious human rights violations, severe environmental damage or gross corruption.

The sub-adviser excludes these issuers from the Fund because it believes that these issuers represent business models that are not sustainable over the long-term. The Fund may invest in transition bonds issued by entities that derive revenue from activities in the exclusion list. Transition bonds, also referred to as sustainable bonds, are debt instruments whose proceeds are exclusively used to finance projects aimed at helping the issuer transition to a more sustainable way of doing business. Examples of these bonds are green bonds (used to finance projects with positive environmental impacts), blue bonds (used to raise capital for ocean conservation, marine and fisheries projects) and social bonds (used to finance social projects intended to achieve positive social outcomes and/or address a social issue).

The sub-adviser uses a combination of issuer lists and ESG-specific issuer information provided by independent third party ESG data providers to determine which issuers to exclude under the ESG exclusions described herein. This information is determined by the internal methodologies and ESG analytics of those providers. This information is determined by the internal methodologies and ESG analytics of those providers. In the event independent third-party ESG data is not available for an issuer, the sub-adviser may rely on its own research to determine whether an ESG exclusion applies to the security. ESG Metrics. In analyzing ESG metrics to make portfolio decisions, the sub-adviser relies on ESG ratings and other information provided by various independent third party ESG data providers to help construct a portfolio of high ESG quality and low financial risk stemming from ESG factors.

ESG metrics are evaluated for the principal investment strategies described in the first paragraph of the Principal Investment Strategies section, except to the extent that any of these principal investments are structured as collateralized loan obligations (Principal Investments). The sub-adviser relies upon the assessments of independent third party data providers to score the ESG factors of each issuer, as those environmental, social or governance factors are applicable or relevant to the issuer, to determine its overall ESG rating. The providers overall ESG ratings consider, as applicable or relevant, the following factors: environmental assessments (involving issues such as greenhouse gas emissions, resource efficiency, use of natural resources and/or waste management), social assessments (involving issues such as human capital management, labor standards, occupational health and safety records, data security and/or product quality and safety) and/or governance assessments (involving issues such as board structure and quality, executive compensation, anti-competitive practices, ownership, shareholder rights, and/or geopolitical risk).

When determining an issuers overall ESG rating, the providers rate the environmental, social and governance factors of each issuer and then apply weights to each factors score to create an aggregate score. The sub-adviser relies upon this overall ESG rating when constructing the portfolio. This approach seeks to maintain high ESG quality and low financial risk stemming from ESG factors for the Fund. These ratings seek to measure the degree to which an issuers economic value is at risk due to ESG factors ( e.g., an insurance company that has to cover flood and tornado claims), how well they manage the ESG risks relative to peers, and potential opportunities arising from ESG factors. In the event third party ESG metrics are not available for an issuer, the sub-adviser may rely on its own qualitative research as a substitute.

The Fund seeks to invest in Principal Investments that would result in a better average ESG rating for those debt securities than the average ESG rating of the debt securities representing Principal Investments within the Bloomberg US Aggregate Bond Index (the Funds benchmark index). These ratings are calculated using ESG metrics provided by independent third party ESG data providers relied upon by the sub-adviser. The Fund seeks to invest in corporate debt securities with a lower average carbon intensity than the average carbon intensity of the corporate debt securities within the Bloomberg US Aggregate Bond Index (the Funds benchmark index) for which this data is available using the carbon intensity definition and calculation methodology of an independent third party ESG data provider. The intended result is investing in a portfolio of companies that has a lower average carbon intensity than the average carbon intensity of the companies in the benchmark.

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. Individual investment selection is based on the sub-advisers fundamental research process and ESG Criteria. The sub-adviser seeks to screen out (exclude) investment in issuers of corporate bonds as described under the ESG Exclusions section above. An individual Principal Investment with a lower ESG rating than that of the benchmarks as described above is eligible for investment provided the average ESG rating of the Principal Investments in the Fund with the new investment remains better than the average ESG rating of the debt securities in the benchmark that represent the investment types covered by the Principal Investments.

Similarly, an individual corporate debt security with a higher carbon intensity than that of the benchmarks as described above is eligible for investment provided the average carbon intensity of the corporate debt securities in the Fund with the new investment remains lower than the average carbon intensity of the corporate debt securities in the benchmark. Individual investments may be purchased or sold in the event the sub-adviser decides to adjust debt asset class weightings within the portfolio. 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. Further, the sub-adviser will re-evaluate the available ESG Criteria of portfolio securities periodically to determine which securities should be considered for sale based on whether the portfolio securities continue to meet the ESG Criteria.

C000223103 Performance

Total returns for C000223103 (as of 2026-10-01), from SEC filings.

Period	Total return
1 year	-4.1%
3 years (annualised)	-4.8%

C000223103 Risk Information

Risk metrics for C000223103, derived from monthly returns in SEC filings.

1-year volatility (annualised): 9.9%

C000223103 Costs and Fees

C000223103 costs about $48 per $10,000 invested per year in fund expenses.

Net expense ratio: 0.48%
Gross expense ratio: 0.99%
Portfolio turnover: 51%
Brokerage commissions: 0.00 bps of average net assets (SEC N-CEN)

C000223103 Cashflows

Over the 12 months to 2023-03, Pacific Funds ESG Core Bond had net inflows of $3.84M, from monthly SEC N-PORT filings.

Month	Net flow
2023-03	$729.32K
2023-02	$949.89K
2023-01	$103.03K
2022-12	$1.12M
2022-11	$137.09K
2022-10	$176.28K

C000223103 Debt Constituents

No individual debt constituents are reported in Pacific Funds ESG Core Bond's latest SEC N-PORT filing.

C000223103 Prospectus and SEC Filings

Official Pacific Funds ESG Core Bond filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

Related Funds

Other Total / Aggregate Bond funds tracked on ABC INVEST:

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.