Target Risk Funds
Pacific Life offers five Portfolio Optimization portfolios, allowing you to match the appropriate portfolio to your financial objectives, risk tolerance, and time horizon. Each portfolio is structured as a fund-of-funds (a fund that invests in other underlying funds) that has been diversified to achieve a specific target-risk level, using a strategic mix of multiple asset classes. Portfolio Optimization portfolios may be selected alone or in combination with other investment options offered through our variable annuities.
Determining Your Risk-Tolerance Level
Everyone has his or her own level of tolerance for investment risk. Evaluating yours, and factoring it into your decisions, is an important part of prudent long-term investing. Your financial professional has tools to help you assess your financial needs, investment time horizon, and risk tolerance and can help you determine which option—or combination of options—may be right for you. Ask your financial professional for details.
About Risk
Asset allocation and diversification do not guarantee future results, ensure a profit, or protect against loss. Better returns 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. Each underlying fund has its own investment goal, strategy, and risks.
Getting Started
If you’ve decided that a Pacific Life variable annuity is right for you, the next decision is how to allocate your investment options. With the help of your financial professional, you can choose the Portfolio Optimization Portfolio that best fits your retirement goals.