janus henderson vit balanced portfolio qqqqq … date: 03-31-2018 janus henderson vit balanced...

Release Date: 03-31-2018

Janus Henderson VIT Balanced Portfolio Available through Pacific Life Variable Annuity ProductsBenchmark: S&P 500 TR USD

Overall Morningstar Rating™ Morningstar Return Morningstar RiskQQQQQ High AverageOut of 7423 Allocation--50% to 70% Equity VA subaccounts. An investment's overall Morningstar Rating, basedon its risk-adjusted return, is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure fordetails.

Investment Strategy from underlying investment's prospectus

The investment seeks long-term capital growth, consistent with preservation of capital and balanced by current income. The Portfolio pursues its investment objective by normally investing 35-65% of its assets in equity securities and the remaining assets in fixed-income securities and cash equivalents. It normally invests at least 25% of its assets in fixed-income senior securities. The Portfolio may also invest in foreign securities, which may include investments in emerging markets.

Category Description: Allocation--50% to 70% Equity

Funds in allocation categories seek to provide both income andcapital appreciation by investing in multiple asset classes,including stocks, bonds, and cash. These portfolios aredominated by domestic holdings and have equity exposuresbetween 50% and 70%.

Morningstar Proprietary Statistics as of 03-31-18Fund Rank Morningstar out of # of

Percentile Rating Investments

YTD 2 . 98671 Year 2 . 92643 Year 9 QQQQQ 74235 Year 12 QQQQ 595810 Year 5 QQQQQ 2733

OperationsSubaccount Incp Date 01-02-13Management Company Janus Capital Management LLCSubadvisor .

Portfolio Manager(s)

E. Marc Pinto. Since 2005.Mayur Saigal. Since 2015.Jeremiah Buckley. Since 2015.Darrell Watters. Since 2015.

Portfolio AnalysisComposition as of 12-31-17 % Assets

U.S. Stocks 59.6Non-U.S. Stocks 1.1Bonds 35.2Cash 3.0Other 1.1

Morningstar Equity Style Box™ as of 12-31-17

LargeM

idSm

all

Value Blend Growth

Morningstar Sectors as of 12-31-17 % Fund

h Cyclical 37.16.......................................................................................................r Basic Materials 3.09t Consumer Cyclical 12.87y Financial Services 17.21u Real Estate 3.99

j Sensitive 39.31.......................................................................................................i Communication Services 2.51o Energy 1.85p Industrials 14.27a Technology 20.68

k Defensive 23.52.......................................................................................................s Consumer Defensive 12.01d Healthcare 11.51f Utilities 0.00

Top Holdings as of 12-31-17 % Assets

Microsoft Corp 3.44Mastercard Inc A 2.67Boeing Co 2.52Alphabet Inc C 2.26Altria Group Inc 2.05.......................................................................................................CME Group Inc Class A 1.93LyondellBasell Industries NV 1.88The Home Depot Inc 1.86US Bancorp 1.81Fed Natl Mort Assc 4% 01-15-46 1.79.......................................................................................................Apple Inc 1.77Honeywell International Inc 1.72US Treasury Note 1.75% 11-30-19 1.67Amgen Inc 1.65Adobe Systems Inc 1.57

.......................................................................................................Total Number of Stock Holdings 63Total Number of Bond Holdings 530Annual Turnover Ratio % 67.00Tax Cost Ratio 3 Yr 1.06Total Fund Assets ($mil) 3,397.65

Statistics as of 12-31-17 Port Avg Rel S&P 500 Rel Cat

P/E Ratio 20.05 1.18 1.12P/B Ratio 4.02 1.42 1.59P/C Ratio 14.42 1.16 1.48GeoAvgCap ($mil) 85,337.75 0.92 1.55

Risk Measures as of 03-31-18 Port Avg Rel S&P 500 Rel Cat3 Yr Std Dev 6.87 0.67 1.023 Yr Beta 1.00 . 0.973 Yr Sharpe Ratio 0.78 0.78 1.443 Yr Alpha -0.25 . 0.123 Yr R-squared 84.64 . 0.93.......................................................................................................Income Ratio 1.69 . .3-Yr Information Ratio -0.10 . 0.09

NotesThis investment option is available only through variableannuities from Pacific Life. Variable annuities are long-terminvestments designed for retirement. The value of the variableinvestment options will fluctuate so that shares, whenredeemed, may be worth more or less than the original cost.Annuity withdrawals and other distributions of taxable amounts,including death benefit payouts, will be subject to ordinaryincome tax. For nonqualified contracts, an additional tax of 3.8%may apply on net investment income. If withdrawals and otherdistributions are taken prior to age 59 1/2, an additional 10%federal tax may apply. A withdrawal charge also may apply.Withdrawals will reduce the contract value and the value of thedeath benefits, and also may reduce the value of any optionalbenefits.Pacific Life refers to Pacific Life Insurance Company and itsaffiliates, including Pacific Life & Annuity Company. Insuranceproducts are issued by Pacific Life Insurance Company in allstates except New York and in New York by Pacific Life & AnnuityCompany. Product availability and features may vary by state.Each insurance company is solely responsible for the financialobligations accruing under the products it issues. Insuranceproduct and rider guarantees, including optional benefits and

any fixed subaccount crediting rates or annuity payout rates, arebacked by the financial strength and claims-paying ability of theissuing insurance company and do not protect the value of thevariable investment options. They are not backed by the broker/dealer from which this annuity is purchased, by the insuranceagency from which this annuity is purchased, or any affiliates ofthose entities, and none makes any representations orguarantees regarding the claims-paying ability of the issuinginsurance company. Variable annuities and shares of the PacificSelect Fund are distributed by Pacific Select Distributors,LLC (member FINRA & SIPC), a subsidiary of Pacific LifeInsurance Company (Newport Beach, CA) and an affiliate ofPacific Life & Annuity Company, and are available throughlicensed third parties.This fact sheet must be preceded or accompanied by theproduct and underlying fund prospectuses which areavailable from your financial advisor. Theseprospectuses contain more complete information aboutPacific Life and a variable annuity's risks, charges,limitations, and expenses, as well as the risks, charges,expenses, and investment objectives of the underlyinginvestment options. Read the prospectuses carefully

before investing.This page must be accompanied by all disclosure pages.

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©2018 Morningstar, Inc., Morningstar Investment Profiles™ 312-696-6000. All rights reserved. The information contained herein: (1) is proprietary toMorningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstarnor its content providers are responsible for any damages or losses arising from any use of information. Past performance is no guarantee of futureperformance. Visit our investment website at www.morningstar.com.

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Pacific Life Insurance Company contracts Morningstar Inc., fora fee, as a third-party advisor to produce this fact sheet. In thiscapacity, Morningstar independently provides analysis on theunderlying investment options for Pacific Life. Pacific Life and itsaffiliates have not independently verified this information. The Morningstar Fact Sheet is provided to help you furtherevaluate the investment options available within Pacific Lifevariable annuities. This information (including MorningstarRating) does not reflect expenses and charges that are, or maybe, imposed under your variable annuity contract. Forinformation on these charges, please refer to the applicablevariable annuity contract or variable annuity prospectus. Morningstar chooses the applicable benchmark for eachportfolio. This index may differ from the benchmark index or theindices in the underlying prospectuses. The index is anunmanaged portfolio of specified securities and the index doesnot reflect any initial or ongoing expenses. Indexes cannot beinvested in directly. See the underlying prospectuses for moreinformation on benchmarks and definitions. Pacific Life Fund Advisors, LLC (PLFA), is the investmentadviser to the Pacific Select Fund (PSF) and the manager ofcertain PSF portfolios. PLFA also does business under the namePacific Asset Management and manages certain PSF portfoliosunder that name. For PSF investment options, the information presented isabout subaccounts funded by corresponding Pacific Select Fundportfolios. Pacific Select Fund is an underlying investmentvehicle to Pacific Life variable products. The PSF DFA Balanced Allocation Portfolio, Pacific Dynamix-Conservative Growth, Pacific Dynamix-Moderate Growth,Pacific Dynamix-Growth, Portfolio Optimization Conservative,Portfolio Optimization Moderate-Conservative, PortfolioOptimization Moderate, Portfolio Optimization Growth, andPortfolio Optimization Aggressive-Growth portfolios are eachstructured as a “fund-of-funds”, and assumes investment in avariety of underlying funds. It also involves direct expenses foreach fund and indirect expenses for the underlying funds, whichtogether can be higher than expenses incurred when investingdirectly in an underlying fund. For more information on thesecharges, please refer to the applicable variable annuityprospectus. American Century Investment Services, Inc., American FundsDistributors, Inc., BlackRock Distributors, Inc., FidelityDistributors Corporation, First Trust Portfolios L.P., FranklinTempleton Distributors, Inc., Invesco Distributors, Inc., IvyDistributors, Inc., Janus Henderson Distributors LLC, JPMorganDistribution Services, Inc., Legg Mason Investor Services,LLC, Lord Abbett Distributor LLC, MFS Fund Distributors,Inc., Neuberger Berman Management LLC, OppenheimerFundsDistributor, Inc., PIMCO Investments LLC, State Street GlobalMarkets, VanEck Securities Corporation, and the products eachdistributes are not affiliated with Pacific Life or Pacific SelectDistributors, LLC. Third-party trademarks and service marks arethe property of their respective owners.

Applicable to Franklin Templeton FundsBecause the Franklin Templeton Founding Funds Allocation VIPFund invests in underlying funds that may engage in a variety ofinvestment strategies involving certain risks, this fund may besubject to those same risks. It also involves direct expenses for

each fund and indirect expenses for the underlying funds, whichtogether can be higher than expenses incurred when investingdirectly in an underlying fund. Investments in stocks offer thepotential for long-term gains but can be subject to short-termprice fluctuations. Because the underlying funds invest in bondsand other debt obligations, the fund’s share price and yield willbe affected by interest rate movements. Bond prices generallymove in the opposite direction from interest rates. Thus, as theprices of bonds in the fund adjust to a rise in interest rates, thefund’s share price may decline. High yield, lower-rated (junk)bonds generally have greater price swings and higher defaultrisks than investment-grade bonds. Foreign investing, especiallyin emerging markets, involves additional risks, includingcurrency fluctuations, economic instability, market volatility, andpolitical and social instability. These and other risks aredescribed more fully in the fund’s prospectus. The fund is a seriesof Franklin Templeton Variable Insurance Products Trust (FTVIP).Shares are generally sold only to insurance company separateaccounts. The fund is distributed by Franklin TempletonDistributors, Inc., One Franklin Parkway, San Mateo, CA94403-1906. Franklin Advisers, Inc. serves as the fund’sinvestment manager. Templeton Global Advisors Limited servesas the fund’s investment manager. Franklin Mutual Advisers,LLC serves as the fund’s investment manager. Applicable to Russell IndexesThe Russell 2000 Index and Russell 2000 Value Index (together,the “Indexes”) are calculated by Russell or its agent, aretrademarks of Frank Russell Company (“Russell”), and have beenlicensed for use by Pacific Select Fund (“PSF”). Neither Russellnor the London Stock Exchange Group companies (together the“Licensor Parties”) sponsor, endorse, sell or promote anyportfolios of PSF, the content of this communication, or makeany claim, prediction, warranty or representation whatsoever,expressly or impliedly, either as to (i) the results to be obtainedfrom the use of the Indexes, or (ii) the suitability of the Indexesfor the purpose to which they are being put. The Licensor Partiesdo not and will not provide any financial or investment advice orrecommendation in relation to the Index to Pacific Select Fundor its clients. The Licensor Parties do not accept any liability toany person for any errors or omissions in the Russell Indexesand are under no obligation to advise any person of any errortherein. Morningstar Portfolio Analysis and Morningstar SectorWeightingsFor individual subaccounts, the purpose of these sections is toprovide an analysis of the individual subaccount. Morningstarprepares this information based on publicly available holdingsinformation. Generally, each underlying subaccount's holdingsare for the prior month end; however, certain underlyingsubaccounts' holdings are for the month ended one or twomonths prior.

Benchmark DefinitionS&P 500 TR USD: The index measures the performance of 500widely held stocks in US equity market. Standard and Poor'schooses member companies for the index based on market size,liquidity and industry group representation. Included are thestocks of industrial, financial, utility, and transportation

companies. Since mid 1989, this composition has been moreflexible and the number of issues in each sector has varied. It ismarket capitalization-weighted.

Morningstar RatingTM

The Morningstar RatingTM for funds, or "star rating", is calculatedfor funds and separate accounts with at least a three-yearhistory. Exchange-traded funds and open-ended mutual fundsare considered a single population for comparative purposes. Itis calculated based on a Morningstar Risk-Adjusted Returnmeasure that accounts for variation in a managed product'smonthly excess performance, placing more emphasis ondownward variations and rewarding consistent performance.The Morningstar Rating does not include any adjustment forsales loads. The top 10% of products in each product categoryreceive 5 stars, the next 22.5% receive 4 stars, the next 35%receive 3 stars, the next 22.5% receive 2 stars, and the bottom10% receive 1 star. The Overall Morningstar Rating for amanaged product is derived from a weighted average of theperformance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics.

Morningstar ReturnThe Morningstar Return rates a fund’s performance relative toother managed products in its Morningstar Category. It is anassessment of a product's excess return over a risk-free rate(the return of the 90-day Treasury Bill) in comparison with theproducts in its Morningstar category. In each Morningstarcategory, the top 10% of products earn a High MorningstarReturn (High), the next 22.5% Above Average (+Avg), themiddle 35% Average (Avg), the next 22.5% Below Average (-Ave), and the bottom 10% Low (Low). Morningstar Return ismeasured for up to three time periods (three, five, and 10 years). These separate measures are then weighted and averaged toproduce an overall measure for the product. Products with lessthan three years of performance history are not rated.

Morningstar RiskMorningstar Risk evaluates a fund’s downside volatility relativeto that of other products in its Morningstar Category. It is anassessment of the variations in monthly returns, with anemphasis on downside variations, in comparison with theproducts in its Morningstar category. In each Morningstarcategory, the 10% of products with the lowest measured riskare described as Low Risk (Low), the next 22.5% Below Average(-Avg), the middle 35% Average (Avg), the next 22.5% AboveAverage (+Avg), and the top 10% High (High). MorningstarRisk is measured for up to three time periods (three, five, and10 years). These separate measures are then weighted andaveraged to produce an overall measure for the product. Products with less than three years of performance history arenot rated.

Morningstar Style Box™The Morningstar Style Box reveals a portfolio's investment style.For equity portfolios, the vertical axis shows the marketcapitalization of the stocks owned. The horizontal axis showsinvestment style (value, blend, or growth).value, blend, orgrowth).

Disclosure

No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by federal government agency

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DefinitionsAlpha is a measure of the difference between a portfolio's actualreturns and its expected performance, given its level of risk asmeasured by beta. Beta is a measure of a portfolio's sensitivity to marketmovements. Credit Analysis on bond portfolios is based on Moody'sratings. Duration is a time measure of a bond's interest-rate sensitivity.Average effective duration is a weighted average of the durationof the underlying fixed-income securities within the portfolio. Information Ratio is a risk-adjusted performance measure.The information ratio is a special version of the Sharpe Ratio inthat the benchmark doesn't have to be the risk-free rate. Income Ratio reveals the percentage of current income earnedper share. The income ratio can be used as a gauge of how muchof the total return comes from income. Price/Book (P/B) Ratio is the weighted average of the price/book ratios of all the stocks in a portfolio. Price/Cash (P/C) Ratio represents the weighted average ofthe price/cash-flow ratios of the stocks in a portfolio. Price/Earnings (P/E) Ratio is a stock's current price dividedby the company's trailing 12-month earnings per share. Geometric Average Cap is the geometric mean of the marketcapitalization for all of the stocks the portfolio owned. Maturity is the average effective maturity, which is a weightedaverage of all the maturities of the bonds in a portfolio, computedby weighting each maturity date by the market value of thesecurity. R-squared reflects the percentage of a portfolio's movementsthat can be explained by movements in its benchmark. Sharpe Ratio is a risk-adjusted measure calculated by usingstandard deviation and excess return to determine reward perunit of risk. Standard Deviation is a statistical measure of the volatilityof the portfolio's returns. Subaccount Inception (Incp) Date is when the investmentoption became part of the separate account. Weighted (Wtd) Price is the average weighted price, whichis generated from the portfolio by weighting the price of eachbond by its relative size in the portfolio. This number reveals ifthe portfolio favors bonds selling at prices above or below facevalue (premium or discount securities, respectively). A highernumber indicates a bias toward premiums. This statistic isexpressed as a percentage of par (face) value.

Investment RiskEach investment option has varying degrees of risk dependingon the investments and investment strategies used. See theapplicable underlying fund prospectuses for more completeinformation regarding investment risks.

Active Management The investment is actively managedand subject to the risk that the advisor's usage of investmenttechniques and risk analyses to make investment decisions failsto perform as expected, which may cause the portfolio to losevalue or underperform investments with similar objectives andstrategies or the market in general.

Asset Allocation Fund of Funds As a fund-of-funds, the

fund typically is exposed to the same risks as the underlyingfunds in which it invests in direct proportion to the allocation ofassets among those Underlying Funds. There is a risk that youcould achieve better returns by investing in an individual fund orfunds representing a single asset class or investment stylerather than investing in the fund.

Conflict of Interest A conflict of interest may arise if theadvisor makes an investment in certain underlying funds basedon the fact that those funds are also managed by the advisor oran affiliate or because certain underlying funds may pay higherfees to the advisor do than others. In addition, an advisor'sparticipation in the primary or secondary market for loans maybe deemed a conflict of interest and limit the ability of theinvestment to acquire those assets.

Convertible Securities Investments in convertible securitiesmay be subject to increased interest-rate risks, rising in valueas interest rates decline and falling in value when interest ratesrise, in addition to their market value depending on theperformance of the common stock of the issuer. Convertiblesecurities, which are typically unrated or rated lower than otherdebt obligations, are secondary to debt obligations in order ofpriority during a liquidation in the event the issuer defaults.

Correlation A Fund that represents an alternative ornontraditional investment strategy is generally expected to havelow to moderate correlation with the performance of traditionalequity and debt investments over long-term periods; however,its actual performance may be correlated with traditional equityand debt investments over short- or long-term periods.

Credit and Counterparty The issuer or guarantor of a fixed-income security, counterparty to an OTC derivatives contract,or other borrower may not be able to make timely principal,interest, or settlement payments on an obligation. In this event,the issuer of a fixed-income security may have its credit ratingdowngraded or defaulted, which may reduce the potential forincome and value of the portfolio.

Currency Investments in securities traded in foreigncurrencies or more directly in foreign currencies are subject tothe risk that the foreign currency will decline in value relative tothe U.S. dollar, which may reduce the value of the portfolio.Investments in currency hedging positions are subject to the riskthat the value of the U.S. dollar will decline relative to thecurrency being hedged, which may result in a loss of money onthe investment as well as the position designed to act as ahedge. Cross-currency hedging strategies and active currencypositions may increase currency risk because actual currencyexposure may be substantially different from that suggested bythe portfolio's holdings.

Debt Securities Debt securities are subject to many risks,including interest rate risk, market and regulatory risk, credit risk,price volatility risk, and liquidity risk, which may affect theirvalue.

Derivatives Investments in derivatives may be subject tothe risk that the advisor does not correctly predict the movement

of the underlying security, interest rate, market index, or otherfinancial asset, or that the value of the derivative does notcorrelate perfectly with either the overall market or theunderlying asset from which the derivative's value is derived.Because derivatives usually involve a small investment relativeto the magnitude of liquidity and other risks assumed, theresulting gain or loss from the transaction will bedisproportionately magnified. These investments may result ina loss if the counterparty to the transaction does not performas promised.

Emerging Markets Investments in emerging- and frontier-markets securities may be subject to greater market, credit,currency, liquidity, legal, political, and other risks compared withassets invested in developed foreign countries.

Equity Securities The value of equity securities, whichinclude common, preferred, and convertible preferred stocks,will fluctuate based on changes in their issuers' financialconditions, as well as overall market and economic conditions,and can decline in the event of deteriorating issuer, market, oreconomic conditions.

Foreign Markets Exposure to foreign markets can involveadditional risks relating to market, economic, political,regulatory, geopolitical, or other conditions. These factors canmake foreign investments more volatile and less liquid than U.S.investments.

Forwards Investments in forwards may increase volatilityand be subject to additional market, active management,currency, and counterparty risks as well as liquidity risk if thecontract cannot be closed when desired. Forwards purchasedon a when-issued or delayed-delivery basis may be subject torisk of loss if they decline in value prior to delivery, or if thecounterparty defaults on its obligation.

Geographic Focus Focusing investments in a single country,limited number of countries, or particular geographic regionincreases the risk that economic, political, social, or otherconditions in those countries or that region will have a significantimpact on performance.

Growth Investing Growth securities may be subject toincreased volatility as the value of these securities is highlysensitive to market fluctuations and future earningsexpectations. These securities typically trade at higher multiplesof current earnings than do other securities and may lose valueif it appears their earnings expectations may not be met.

High-Yield Securities Investments in below-investment-grade debt securities and unrated securities of similar creditquality, commonly known as "junk bonds" or "high-yieldsecurities," may be subject to increased interest, credit, andliquidity risks.

Inflation-Protected Securities Unlike other fixed-incomesecurities, the values of inflation- protected securities are notsignificantly impacted by inflation expectations because theirinterest rates are adjusted for inflation. Generally, the value of

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inflation- protected securities will fall when real interest ratesrise and rise when real interest rates fall.

Interest Rate The value of bonds, fixed rate loans and short-term money market instruments may fall when interest ratesrise. Debt instruments with longer durations tend to be moresensitive to changes in interest rates, making them more volatilethan debt instruments with shorter durations or floating oradjustable interest rates.

Issuer A stake in any individual security is subject to the riskthat the issuer of that security performs poorly, resulting in adecline in the security's value. Issuer-related declines may becaused by poor management decisions, competitive pressures,technological breakthroughs, reliance on suppliers, laborproblems or shortages, corporate restructurings, fraudulentdisclosures, or other factors. Additionally, certain issuers maybe more sensitive to adverse issuer, political, regulatory, market,or economic developments.

Large Cap Concentrating assets in large-capitalization stocksmay subject the portfolio to the risk that those stocksunderperform other capitalizations or the market as a whole.Large-cap companies may be unable to respond as quickly assmall- and mid cap companies can to new competitivepressures and may lack the growth potential of those securities.Historically, large-cap companies do not recover as quickly assmaller companies do from market declines.

Leverage Leverage transactions may increase volatility andresult in a significant loss of value if a transaction fails. Becauseleverage usually involves investment exposure that exceeds theinitial investment, the resulting gain or loss from a relativelysmall change in an underlying indicator will be disproportionatelymagnified.

Restricted/Illiquid Securities Restricted and illiquidsecurities may fall in price because of an inability to sell thesecurities when desired. Investing in restricted securities maysubject the portfolio to higher costs and liquidity risk.

Market/Market Volatility The market value of the portfolio'ssecurities may fall rapidly or unpredictably because of changingeconomic, political, or market conditions, which may reduce thevalue of the portfolio.

Mid-Cap Concentrating assets in mid-capitalization stocksmay subject the portfolio to the risk that those stocksunderperform other capitalizations or the market as a whole.Mid-cap companies may be subject to increased liquidity riskcompared with large-cap companies and may experiencegreater price volatility than do those securities because of more-limited product lines or financial resources, among otherfactors.

Mortgage-Backed and Asset-Backed SecuritiesInvestments in mortgage-backed and asset-backed securitiesmay be subject to increased price volatility because of changesin interest rates, issuer information availability, credit quality ofthe underlying assets, market perception of the issuer,

availability of credit enhancement, and prepayment of principal.The value of ABS and MBS may be adversely affected if theunderlying borrower fails to pay the loan included in thesecurity.

Nondiversification A nondiversified investment, as definedunder the Investment Act of 1940, may have an increasedpotential for loss because its portfolio includes a relatively smallnumber of investments. Movements in the prices of theindividual assets may have a magnified effect on a nondiversifiedportfolio. Any sale of the investment's large positions couldadversely affect stock prices if those positions represent asignificant part of a company's outstanding stock.

Price Volatility As with any investment, the value of theFund's holdings will fluctuate so that shares, when redeemed,may be worth more or less than their original cost.

Short Sale Selling securities short may be subject to therisk that an advisor does not correctly predict the movement ofthe security, resulting in a loss if a security must be purchasedon the market above its initial borrowing price to return to thelender, in addition to interest paid to the lender for borrowingthe security.

Small Cap Concentrating assets in small-capitalization stocksmay subject the portfolio to the risk that those stocksunderperform other capitalizations or the market as a whole.Smaller, less-seasoned companies may be subject to increasedliquidity risk compared with mid- and large-cap companies andmay experience greater price volatility than do those securitiesbecause of limited product lines, management experience,market share, or financial resources, among other factors.

Underlying Funds Because the Fund may serve as anunderlying fund of one or more "fund of funds" and thus have asignificant percentage of its outstanding shares held by suchfund of funds, a change in asset allocation by the fund of fundscould result in large redemptions out of the Fund, causingpotential increases in expenses to the Fund and sale of securitiesin a short timeframe, both of which could negatively impactperformance.

U.S. Government Securities Not all U.S. governmentsecurities are backed or guaranteed by the U.S. government anddifferent U.S. government securities are subject to varyingdegrees of credit risk. There is risk that the U.S. government willnot make timely payments on its debt or provide financialsupport to U.S. government agencies, instrumentalities orsponsored enterprises if those entities are not able to meet theirfinancial obligations.

Value Investing Value securities may be subject to the riskthat these securities cannot overcome the adverse factors theadvisor believes are responsible for their low price or that themarket may not recognize their fundamental value as the advisorpredicted. Value securities are not expected to experiencesignificant earnings growth and may underperform growthstocks in certain markets.

Volatility Management Risk The Fund may invest a portionof its assets in certain tactical portfolios of Pacific Select Fundin order to seek to manage the volatility of the Fund's returnsover the long term and to seek to provide some measure ofprotection in adverse equity market conditions. There can be noguarantee that such strategies will be successful or that themeasurements of volatility used by the sub-adviser will correctlyestimate the future volatility of the financial marketsrepresented by a tactical portfolio's respective index. If theFund's equity exposure is increased and equity markets decline,the Fund will likely underperform funds that do not use amanaged volatility strategy. If the Fund's equity exposure isreduced and equity markets rise, the Fund may alsounderperform funds that do not use a managed volatilitystrategy. A Tactical Portfolio may also forgo gains or incur lossesas a result of the implementation of this strategy in extremelylow or extremely high volatility markets.

Mailing addresses:Pacific Life Insurance CompanyP.O. Box 2378 • Omaha, NE 68103-2378 • (800) 722-4448

Pacific Life & Annuity Company P.O. Box 2829 • Omaha, NE 68103-2829 • (800) 748-6907 •www.PacificLife.com

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janus henderson vit balanced portfolio qqqqq … date: 03-31-2018 janus henderson vit balanced...

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