Investor Compass - Portfolio Manager Viewpoints - May 2015

Pacific Life Insurance

Description

portfolio manager viewpoints may 2015 Should rates move higher, or a taper tantrum similar to 2013 develop, bank loans have the added benefit of being a potential hedge against that volatility. Summary: Following a weak 2014, bank loans have seen a snapback in performance as technicals and risk sentiment have improved. A combination of stable fundamentals, “good enough” economic growth, and low absolute yield levels on traditional fixed income paint a favorable relative value picture. Given a coupon like return profile of 5-6% with a lack of duration risk, bank loans continue to serve as an excellent diversifier for traditional fixed income. Pacific Asset Management May 2015 ABOUT PACIFIC ASSET MANAGEMENT Founded in 2007, Pacific Asset Management specializes in credit oriented fixed income strategies. Pacific Asset Management is a division of Pacific Life Fund Advisors LLC, an SEC registered investment adviser and a wholly owned subsidiary of Pacific Life Insurance Company. As of March 31, 2015 Pacific Asset Management managed approximately $4.8bn. IMPORTANT NOTES AND DISCLOSURES Bank loan, corporate securities, and high yield bonds involve risk of default on interest and principal payments or price changes due to changes in credit quality of the borrower, among other risks.

Pacific Asset Management is an investment advisor; it provides investment advisory services to institutional clients and does not sell securities. This information is presented for informational purposes only. This is not to be construed as an offer to buy or sell any financial instruments and should not be relied upon as the sole investment making decision. All material is compiled from sources believed to be reliable, but accuracy cannot be guaranteed.

The opinions expressed herein are based on current market conditions and are subject to change without notice. FOR MORE INFORMATION Pacific Asset Management • 700 Newport Center Drive • Newport Beach, CA 92660 • www.pam.pacificlife.com 4 .