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PACIFIC LIFE IS
a well known traditional life and variable annuity
provider established in 1868. Only recently have they
entered into the retirement market, but with significant
experience in asset management and wide coverage and
support of advisors, their approach will help to
establish them as a major player in the asset allocation
market for retirement plans.
In
2001, Pacific Life introduced 16 sub-advised mutual
funds, and then in February 2004, took the asset
allocations used for their variable annuities and
created risk based asset allocation funds which replaced
the single manager mutual funds. Participants are
matched to one of five risk based models; each one
has up to 17 managers covering 13 asset classes. The
cost of A shares ranges from 118 to 144 basis points
with 25 basis points available to advisors. In January
2006, R shares, which included revenue sharing for
record keepers, were introduced with slightly greater
expense. Platforms carrying Pacific Life Portfolio
Optimization Funds include Matrix, SunGard, Schwab,
TD Ameritrade and Wilmington Trust as well as some
record-keeping platforms like Daily Access, Acensus (BISYS),
Trusource and Schwab. Like many asset allocation
fund providers, it has been difficult for Pacific Life
to get on platforms that have their own, proprietary AA
funds. Pacific Life does not provide any record-keeping
services to plan sponsors.
Fund
managers used in Pacific Life’s AA funds, which has
close to $23 billion under management, include Van
Kampen, Oppenheimer, Goldman Sachs and PIMCO, to name a
few. Ibbotson assists with models and a separate,
group at Pacific Life helps with screening and
monitoring of outside managers. With 125 VA and mutual
funds wholesalers supported by four retirement
specialists, advisors can expect national and complete
support in the field. Advisors using Pacific Life asset
allocation funds can expect to leverage the great brand,
independence and a vast support network to help them
focus on plan sales and service.
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