Pacific Life Funds Introduces the PL Diversified Alternatives Fund

A Simplified Approach to Alternatives Investing

to Increase Overall Portfolio Diversification

Newport Beach, Calif. (August 1, 2014)- To help provide financial advisors and their clients with additional portfolio diversification opportunities, Pacific Life Funds has launched the PL Diversified Alternatives Fund. The new mutual fund may help smooth out the overall risk and improve diversification because of the addition of alternative asset classes to a portfolio.

The PL Diversified Alternatives Fund provides a simplified approach to alternatives investing through a fund-of-funds structure, investing in a variety of other mutual funds of Pacific Life Funds (Underlying Funds) considered to be alternative or nontraditional investment strategies. Each Underlying Fund represents a distinct investment strategy with varying degrees of volatility and return potential depending on market conditions. Among the variety of asset classes, the Fund may invest in currency, emerging-markets debt, emerging-markets equity, floating-rate loans, global absolute return, 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.

Pacific Life Fund Advisors is the fund manager of the PL Diversified Alternatives Fund. The portfolio managers include Howard T. Hirakawa, CFA®, Carleton J. Muench, CFA®, and Samuel S. Park. The investment management team consists of highly disciplined professionals with more than 48 years of combined experience managing fund-of-funds strategies. 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, option 2.

About Risk

As with any mutual fund, the value of the Fund’s holdings will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. There is no guarantee that the Fund’s strategies will achieve the Fund’s investment goal. Nontraditional or alternative investment performance may be correlated with traditional equity and fixed-income investments over short- or longer-term periods, resulting in a lessened diversification effect and increased volatility when included in a portfolio as part of an asset allocation strategy. Asset allocation, although intended to provide diversification, does not guarantee future results, ensure a profit, or protect against loss. Better results could be achieved by investing in an individual fund or funds representing a single asset class rather than using asset allocation. A fund-of-funds is subject to its own expenses along with the expenses of the Underlying Funds. It is typically exposed to the same risks as the Underlying Funds in which it invests in proportion to the allocation of assets among those Underlying Funds, among other risks. Some of the risks of the Underlying Funds include, but are not limited to, currency risk, floating-rate loan risk, precious metals risk, derivatives risk, and interest-rate risk. Currency exposure subjects a portfolio to changes in the rates of exchange between currencies, which may result in increased volatility. Floating-rate loans involve risk of default on interest and principal payments or price changes due to changes in credit quality of the issuer. The value can be more volatile due to increased sensitivity to adverse issuer, political, regulatory, market, or economic developments. Companies engaged in precious metals-related activities may be adversely affected by drops in the prices of the precious metals themselves, for which prices can be volatile. Derivatives can be complex instruments that may experience sudden changes in price and liquidity may be difficult to value, sell, or unwind and may be leveraged, which can cause very large swings in value. Debt securities are affected by changes in interest rates, with longer durations or fixed interest rates being more sensitive to changes in interest rates, making them generally more volatile than debt securities with shorter durations or floating or adjustable interest rates. Please see the prospectus for a detailed description of these and other risks associated with the PL Diversified Alternatives Fund.

About Pacific Life

Offering insurance since 1868, Pacific Life provides a wide range of life insurance products, annuities, and mutual funds, and offers a variety of investment products and services to individuals, businesses, and pension plans. Pacific Life counts more than half of the 100 largest U.S. companies as its clients. For additional company information. including current financial strength ratings. visit Pacific Life online at www.PacificLife.com .

Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Client count as of June 2014 is compiled by Pacific Life using the 2014 FORTUNE 500 ® list.

This material must be preceded or accompanied by the Pacific Life Funds prospectus and/or applicable summary prospectus. Contact your financial advisor or visit www.PLFunds.com for more information, including the prospectus and/or summary prospectus that contains more complete information, as well as the risks, charges, strategies, expenses, and investment goals of Pacific Life Funds. Read them carefully before investing.

Each Underlying Fund has its own investment goal, strategy and risks, and may not be available for individual purchase. The prospectuses for the Underlying Funds are available at www.PLFunds.com .

Pacific Life Fund Advisors LLC (PLFA), a wholly owned subsidiary of Pacific Life Insurance Company, is the manager of the PL Diversified Alternatives Funds and is responsible for determining the asset allocation mix for the fund. PLFA also does business under the name Pacific Asset Management and manages certain funds under that name.

The PL Diversified Alternatives Fund is offered by Pacific Life Funds. Pacific Life Funds are distributed by Pacific Select Distributors, Inc. (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company (Newport Beach, CA), and are available through licensed third-party broker/dealers.